Fairfield County”™s largest bank kicked off 2007 by making a major commitment to Westchester County, N.Y. A Westchester bank is closing the year by doing the same in Fairfield County.
Even as Bridgeport-based People”™s United Financial Inc. expands in Westchester, Yonkers-based Hudson Valley Holding Corp. won federal approval to establish its main banking office in Stamford, as it converts to a national charter that allows it to open new branches in other states.
Hudson Valley Bank detailed its plans after being contacted last week by the Fairfield County Business Journal.
Even if just a paper maneuver, at first glance it seemed a startling decision for a bank that has long trumpeted its Yonkers roots, much as People”™s United Bank has hewed true to its heritage in gritty Bridgeport.
Shortly after its 1972 founding in a trailer in Yonkers in response to bank consolidation at the time, Hudson Valley Bank established its main banking office at 35 East Grassy Sprain Road in Yonkers where it has remained ever since. The branch is located less than 2 miles from its current headquarters at 21 Scarsdale Road in Yonkers.
By relocating its main banking office to Stamford, Hudson Valley Bank avoids a protracted regulatory process that might otherwise significantly delay its Connecticut entry, according to James Landry, chief executive officer.
“We believe it is a natural progression for us to go into Connecticut,” Landy said.
He added the company has no plans to relocate its headquarters from its current location.
Today, Hudson Valley Bank is the largest locally run bank in Westchester with $2.2 billion in assets. Under Landy, the bank”™s share of the Westchester market has remained flat this decade between 4 percent and 5 percent. Still, the bank is profitable with net earnings of $26 million over the first nine months of 2007.
The company abandoned a federal charter in 1994 in favor of a New York state charter. In reestablishing a federal charter, Hudson Valley Bank will not have to deal with multiple state regulators.
In expanding to New York City this decade, including via the 2006 acquisition of Bronx-based New York National Bank, Landy said his staff learned the value of hiring bankers with strong local roots. In February, the company expanded into New City, N.Y., giving it a toehold in Rockland County.
The bank has already hired a former TD Banknorth manager to lead the Stamford branch, which is to be located at 1055 Summer St. north of downtown. The company chose Stamford for its initial foray in part because of its significant concentration of attorneys and other business professionals the bank targets as customers; and in part because the location is within 30 miles of the Yonkers main office, in accordance with federal rules governing the relocation of main branches.
Landy said the company has plans to open four more Connecticut branches along the Interstate 95 corridor during the next few years, but did not make projections on hiring needs. As of the close of last year, the bank had 440 employees, most of them full time.
Landy is not the only banker eyeing wealthy Fairfield County, of course ”“ between 2006 and 2007, the county gained 24 bank branches, giving it 392 as of midyear.
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