Hudson Valley Holding Corp. has completed the sale of $474 million in loans after it was required to reduce its concentrations in commercial real estate and classified loans.

The $2.8 billion-asset company said Monday that the sale would result in a pre-tax gain of roughly $16 million in the first quarter. It has already started using the proceeds by purchasing $65 million of residential adjustable-rate mortgage loans supported by in-market real estate collateral, the Yonkers, N.Y., company said.Hudson Valley previously reported that the Office of the Comptroller of the Currency instructed it to reduce its concentrations in CRE and classified loans relative to its risk-based capital. The bank said it would sell the loans by midyear.

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