HUDSON VALLEY BANK EXPANDS PRODUCT OFFERING WITH LAUNCH OF ASSET BASED LENDING

Newly Formed Unit Designed to Provide Additional Commercial Financing Options to New York Metropolitan-area Businesses and Enable HVB to Expand its Footprint

PRESS RELEASE

Stephen R. Brown, President & CEO of Hudson Valley Bank, the operating subsidiary of Hudson Valley Holding Corp. (NYSE: HVB) has announced the launch of its asset-based lending group. The newly formed unit, which will be led by a team of banking industry veterans, underscores Hudson Valley Bank’s commitment to driving loan growth in 2013 and beyond and providing more comprehensive lending products focused on small and middle market companies.

“Our move into asset-based lending addresses the growing need in the market for alternative financing solutions,” said Mr. Brown. “As the economy continues to recover, businesses are looking to invest and grow and require a broader range of lending options. The flexibility of asset-based solutions as compared to other capital sources are particularly appealing to the small- and mid- sized companies that make up our customer base. The addition of asset-based lending not only enables us to offer our existing customers a far greater range of services, but also provides a strong opportunity for in-market loan growth and for us to diversify geographically as well.”

The unit will be led by Mark Fagnani, a seasoned professional with 34 years of experience in commercial lending. Prior to joining Hudson Valley Bank, Mr. Fagnani was a Managing Director and Chief Credit Officer of Wachovia Capital Finance, a unit of Wachovia Bank. Mr. Fagnani began his career at Congress Financial as a credit and collateral analyst and over the course of his 33-year tenure held a range of positions at Congress and its successor companies First Union Business Credit, Wachovia Capital Finance and Wells Fargo Foothill (now known as Wells Fargo Capital Finance). In addition, Mr. Fagnani was Principal of MSF Associates, an advisory firm working for borrowers, lenders and/or counsel for lenders.

Joining Mr. Fagnani are Kenneth J. Murphy and Richard S. Lampack. Mr. Murphy is a lending and marketing specialist with extensive experience in underwriting, structuring and negotiating mid-market, asset-based and cash flow transactions. Before joining Hudson Valley Bank, Mr. Murphy was Vice President, New Business Development Officer at Transportation Alliance Bank in New York. Prior to that role, Mr. Murphy served in a number of senior positions at an array of financial institutions including Transamerica Business Capital and Fleet Capital.

Mr. Lampack is a commercial finance and financial administration specialist with expertise managing and supporting financial services and bank lending products. In addition to having served as an independent finance and operations consultant on new

business ventures, start-ups and reorganizations, Mr. Lampack also worked as a Finance Officer at Wells Fargo Capital Finance and Business Unit Officer and Product Controller at Wachovia Capital Finance, among other positions.

Reporting directly to Mr. Brown, the team will be charged with designing and launching an array of asset-based solutions for companies with credit needs between $2.5 million and $25 million—the range typically underserved by the country’s big banks. Hudson Valley Bank’s asset-based financing structures will be customized to the unique needs of small and medium-sized businesses in the region looking to achieve a range of objectives including financing capital improvements, increasing inventory or expanding payrolls.

“Asset-based lending has been around for a long time and, when done well, is proven to be beneficial in helping businesses meet their financial objectives, while at the same time, enhance profitability for the banks that offer those solutions,” said Mr. Fagnani.

“Applying the expertise my team and I have honed at some of the nation’s largest, most sophisticated lending institutions will not only allow Hudson Valley Bank to service an underserved market niche, but do so in Hudson Valley’s hallmark customized, relationship-driven approach that is lacking from the big banks.”

“We’re excited to have such a high-caliber team of seasoned executives in place to broaden our lending solutions in ways that will enable the business customers we serve to grow and thrive,” said Mr. Brown. “This latest investment in growing and diversifying our loan portfolio follows 18 months of infrastructure improvements to risk management programs, stringent credit underwriting processes along with updated technology latforms that will position our company for continued success in 2013 and beyond.”

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