Upon William Woolsey's return to his business ventures in New York in 1825, he selected Hoadley to succeed him as Eagle Bank of New Haven president.

Unpaid debts for the college at the time amounted to well over $19,000, causing Yale president Jeremiah Day to obtain emergency sources of financing.

The collapse of the bank was catastrophic to the City of New Haven, precipitating a depression in the local economy.

In disgrace, Hoadley quietly moved to Cleveland in 1830 and established his own law practice.

Hoadley served as Justice of the Peace from 1832 to 1846 and was elected mayor for a two-year term in 1846.