Some things change; some stay the same. In the case of Greater Hudson Bank, the change of name and shift in key personnel positions helped turn a once failing bank ”“ the former Community Bank of Orange, formed in 2002 ”“ into a Cinderella story under its new name and team.
What stayed the same was the level of commitment many of Union State Bank”™s former employees brought with them when the Community Bank of Orange was purchased in 2008 by a group of investors that included Union State Bank”™s former chairman of the board, Kenneth Torsoe.
With its two branches in Middletown and Warwick, Community Bank of Orange expanded, opening a branch in Bardonia in Rockland County the following year and then another in White Plains in 2010. With the Bardonia opening, the name officially changed to Greater Hudson Bank. The bank once known as the one that “couldn”™t shoot straight” turned its fortunes around and hasn”™t looked back since.
“We had our first profitable quarter nine months after we took over Community Bank of Orange,” said Eric Wiggins, president and CEO. The fourth quarter of 2010 was one of GHB”™s best, with the bank showing a net income of $2.8 million. “That makes this the ninth consecutive quarter we’ve shown an increase in profits,” he said. “We couldn”™t be more pleased.”
Wiggins attributes the turnaround to the experienced staff that was chosen to run CBO when it was first purchased. Kenneth Torsoe “had a great working relationship with former USB President Thomas Hales,” said Wiggins. “Ken has been chairman of the bank”™s board since it was acquired, and his knowledge and expertise has been invaluable. It”™s been his vision, leadership and desire to help people that laid the foundation for our success to date.”
Total deposits have increased $80.2 million: from $138.4 million Dec. 31, 2009, to $218.4 million Dec. 31, 2010. Nonperforming assets declined by $338,000, or 28.5 percent, to $849,000 at the end of 2010. The bank also has $32 million in Tier I capital at the close of 2010.
Banks are, indeed, lending, money, said Wiggins, but financial times have made many tighten up lending regulations. “We look for borrowers that can demonstrate the ability to repay a loan, have a good credit history and can show proof of income along with a reasonable financing request,” said Wiggins. “We try to work with our business customers to create a financing structure that makes sense for both the borrower and the bank. There”™s no question credit standards are much stricter today ”“ but we are in the business of making loans, and that is one of our primary goals.”
While the bulk of Greater Hudson Bank”™s business is done in the commercial sector, it offers home equity lines of credit and is in the process of moving into a new area of lending: residential home mortgages. “We are going to see wide-sweeping changes as a result of the new Dodd-Frank legislation,” Wiggins said. “Before we roll out any new initiative, we are going to be sure we are in total compliance with the new laws, which even now are beginning to be sorted out.”
Lynne Allan, the bank”™s chief operating officer, said GHB hopes to be ready to enter the residential mortgage marketplace within the next three to six months.
Since bringing its fourth branch on line in White Plains, Greater Hudson Bank has created a total 22 positions since taking over the former Community Bank of Orange three years ago.
“We feel like it”™s a tremendous accomplishment, especially in light of the financial crisis, to be able to have hired 22 more employees,” Wiggins said. “We have a full-service branch in Westchester with a commercial loan officer in place and we have been able to increase staff and bring consistent, positive news to our depositors. We are on the right track and expect to remain there. We”™re not planning to expand, but we are always looking for new opportunities.
“Right now, we are focused on making Greater Hudson the best it has ever been and strive to outdo each banking quarter.”
