Stephen R. Brown, President and Chief Executive Officer of Hudson Valley Bank, the operating subsidiary of Hudson Valley Holding Corp. announced that the bank has formed HVB Equipment Capital LLC.

"HVB Equipment Capital will be a nationwide lender to customers, wholesale partners and manufacturers," according to Mr. Brown. "The unit will offer equipment leasing and lending for a wide range of income-producing equipment, including manufacturing, healthcare, technology, and transportation, among others, with a focus on small and middle market transactions in the $100,000 to $5 million range."

Equipment financing offers a flexible alternative to traditional commercial loans, and an estimated $800 billion is expected to be spent on capital equipment acquisitions this year. "Financing equipment allows companies to enhance cash flow and preserve working capital," said Mr. Brown. "This financing option provides fixed monthly payments, allowing businesses to match debt service to revenue-generating equipment and better budget and forecast finances."

The new group will be based in New York City and headed by Steven A. Orenstein, an industry veteran with over 35 years of experience in equipment finance sales and management. Prior to joining Hudson Valley Bank, Mr. Orenstein was a Senior Vice President of the Sterling National Bank Leasing Division. He began his career in healthcare equipment sales and finance and over the years, held a range of positions at companies including Parliament Leasing, Allied Chemical's Equilease Corporation, Telcom Leasing, and Compton Capital, which was merged with Sterling in 1994. He will be joined by a seasoned team of sales and key support personnel.

"Joining Hudson Valley presents an extraordinary opportunity for all of us on the bank's new equipment financing team," said Mr. Orenstein  "With Hudson Valley's rich history as a dedicated small and middle-market commercial lender, its unrivaled local reputation for personalized service, its very well capitalized position, and the experience of our professional team, we have the tools we need to deliver attractive equipment financing solutions to our customers and make a positive impact on the marketplace."

The new unit is a natural extension of Hudson Valley's longstanding cash-flow commercial and industrial (C&I) lending franchise, as well as a complement to the asset-based lending group that the bank launched late last year.

"We continue to expand our capabilities for addressing the growing needs of the small- and mid-sized commercial customer base, which has always been Hudson Valley Bank's strength," Mr. Brown said.  "The robust market for equipment financing presents significant opportunities for us to leverage our hallmark customized service and our available capital to aggressively compete for deals. We welcome Steve to Hudson Valley and look forward to introducing current and prospective customers to how businesses can benefit from his expertise and our new equipment financing capabilities."

"Hudson Valley is moving strategically forward to diversify and grow our loan portfolio and the Bank," Mr. Brown added.  "We continue to invest in new technology and new areas of business, like equipment capital, to help drive our continued success for the near and long-term."