Nov. 4--NewAlliance Bank announced Tuesday it has formed a new asset-based commercial lending business headquartered in Massachusetts and led by two industry veterans.

NewAlliance Commercial Finance in Westwood, Mass., serves business clients and broadens the bank's lending options by offering revolving lines of credit and term loans that are secured by accounts receivable, inventory and other assets.

"While many banks have pulled back this year, NewAlliance has actually stepped up our lending to small and midsized businesses," Chairwoman and Chief Executive Officer Peyton Patterson said in a statement.

"Our creation of NewAlliance Commercial Finance is further evidence of our commitment to the businesses in our community that rely on banks during economic times like this," she said.

The new division will focus on the Northeast and mid-Atlantic initially, particularly within NewAlliance's existing footprint, and is expected to begin making business transactions immediately, according to company officials.

"Their initiative is interestingly timed and should distinguish them in their competitive position," said John Carusone, president of the Bank Analysis Center Inc. in Hartford.

"NewAlliance has a sterling and strong reputation as a retail bank, and this is evidence of them trying to reach out in a different way to the business community," Carusone said.

Asset-based lending is somewhat of a departure for NewAlliance, he said, since it is "riskier" than other types of lending, but NewAlliance is positioned well with abundant capital and strong management in place.

"It's hard for small businesses to get credit these days; the traditional credit sources have dried up for many small businesses," Carusone said, which presents an opportunity for NewAlliance.

Two executives who are industry veterans, but new to NewAlliance, are leading the new business.

Andrew H. Moser has been named president of NewAlliance Commercial Finance and Daniel F. O'Rourke has been appointed chief credit officer.

Moser has more than 20 years of financial experience. He has been a senior executive at four national retail finance companies: GBFC Inc., which is now known as Bank of America Retail Finance; Paragon Capital, known now as Wells Fargo Retail Finance; CapitalSource's Retail Finance Group; and GMAC Commercial Finance's Retail Finance Group.

Prior to coming to NewAlliance, O'Rourke was senior vice president at National City Business Credit's Retail Finance Group, overseeing its portfolio management team on asset-based and cash flowbased transactions.

Previously, he was senior credit officer at LaSalle Business Credit's Retail Finance Group and started his commercial banking career at Paragon Capital, which today is known as Wells Fargo Retail Finance.

NewAlliance Bank, headquartered in New Haven, is a subsidiary of NewAlliance Bancshares Inc. The parent company's shares closed Tuesday at $11, down 1 cent on the New York Stock Exchange.

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