Hudson Valley Holding Corp. said Tuesday that it submitted an application to combine its two local banking units.
If approved, New York National Bank will relinquish its banking charter and operate as a division of Hudson Valley Bank. Approval for the acquisition is expected in early 2010, the company said.
Hudson Valley Bank, based in Westchester, has more than $2.4 billion in assets and 33 branches in the New York metropolitan area and Connecticut. New York National Bank, based in the Bronx, has about $140 million in assets and three branches in the Bronx and Upper Manhattan. It was acquired by Hudson Valley Holding in 2006.
Merging the two units will reduce costs and improve the efficiency of operations, the company said.
The change will not affect where or how customers of either bank do their banking, the company said in a release.
Shares of Hudson Valley slipped 51 cents to $26.89 Tuesday.