SOURCE: Greater Hudson Bank

Greater Hudson Bank

April 25, 2012 13:21 ET

Greater Hudson Bank, N.A. Reports a 61.9 Percent Increase in Net Income for the 2012 First Quarter

MIDDLETOWN, NY--(Marketwire - Apr 25, 2012) - Greater Hudson Bank, N.A. (the "Bank") (OTCQB: GHDS) (PINKSHEETS: GHDS), with assets of $323.9 million, today reported a 61.9 percent increase in net income for the 2012 first quarter to $709,000 or $0.07 per common share compared to $438,000 or $0.04 per common share for the 2011 first quarter. Return on average common stockholders' equity was 7.61 percent for the first quarter of 2012 compared to 5.30 percent for the first quarter of 2011.

"Our first quarter numbers reflect a strong start to 2012 as we continue to execute our growth plans at our Bank," stated Kenneth J. Torsoe, chairman of the board of directors of Greater Hudson Bank. Mr. Torsoe further stated, "We are pleased with the excitement being expressed after the announcement of our newest location in Monroe, N.Y. and look forward to introducing ourselves to the local community at our grand opening events planned for May and June. We are confident that we will be able to show the local residents and businesses of Monroe, as well as the surrounding areas, why Greater Hudson is increasingly becoming the bank of choice in the Hudson Valley."

The increase in net income from the previous year was primarily attributed to an increase in net interest income of $536,000 as a result of an increase in the balance of average earning assets. Net income also increased due to an increase in gains on securities transactions of $196,000. The increase in net income was partially offset by increases in the provision for loan losses of $68,000 and noninterest expense of $211,000.

Eric J. Wiggins, president and CEO of Greater Hudson Bank, commented, "I am very pleased that Greater Hudson continues to report strong results with a significant increase in our first quarter net income. Net interest income, our primary source of revenue, also saw a sizable increase of 23% compared to last year's first quarter." Mr. Wiggins added, "We are seeing good loan demand with a strong pipeline coming into 2012, which has been a main contributor to these results. Net loans outstanding increased over 25% from last year's first quarter and nearly 8% since year end."

Mr. Wiggins further stated, "We are proud of our stability as a financial organization. While we saw an increase in our non-performing loans this past quarter, the increase was primarily related to one loan relationship, which is being monitored closely. The Bank remains exceedingly well capitalized with asset quality ratios that exceed those of many of our peers."

Financial highlights as of and for the three months ended March 31, 2012 compared to the March 31, 2011 period are as follows:

  • Total assets increased $41.2 million, or 14.6 percent, to $323.9 million.
  • Loans, net of unearned income increased $34.6 million, or 25.8 percent, to $168.8 million.
  • Investments increased $10.8 million, or 9.1 percent, to $129.0 million.
  • Deposits increased $29.8 million, or 12.4 percent, to $269.9 million.
  • Net interest income increased $536,000, or 23.2 percent, to $2.8 million.
  • Gains on securities transactions increased to $196,000.
  • Provision for loan losses increased $68,000, or 44.2 percent, to $222,000.
  • Non-interest expense increased $211,000, or 14.2 percent, to $1.7 million.
  • Provision for income taxes increased $156,000, or 55.7 percent, to $437,000.
  • Efficiency ratio improved to 59.2 percent from 63.0 percent.


*Results Unaudited Three months Ended
March 31,
(in thousands, except ratios)
Net interest income $ 2,847 $ 2,311
Provision for loan losses 222 154
Noninterest income 24 50
Gains on securities transactions 196 -
Noninterest Expense 1,699 1,488
Income before income taxes 1,146 719
Provision for income taxes 437 281
Net income $ 709 $ 438
Efficiency Ratio 59.2 % 63.0 %
Earning Assets $ 295,789 $ 247,846
Total Interest Bearing Liabilities 256,175 215,563
Net interest spread 3.74 % 3.63 %
Net interest margin 3.85 % 3.73 %

Net interest income increased for the three months ended March 31, 2012 compared to the 2011 comparable period as a result of a $47.9 million increase in the balance of the Bank's average earning assets as well as an increase in the Bank's net interest margin to 3.85 percent. The Bank's average interest bearing liabilities also increased by $40.6 million for the 2012 first quarter compared to the 2011 comparable period.

The provision for loan losses increased $68,000 for the 2012 first quarter compared to the 2011 first quarter, primarily due to the increase in loans outstanding.

Non-interest expense increased $211,000 in the 2012 first quarter primarily due to increases in salary and marketing expenses as well as expenses related to other outside services. These increases in non-interest expense for the year are attributable to the Bank's continued growth and are partially offset by decreases in expenses related to FDIC insurance and the Bank's reserve for unfunded commitments. While the Bank's non-interest expense has increased, management has been able to successfully manage the increase, which is evidenced by the improvement in the Bank's efficiency ratio from 63.0 percent for the three months ended March 31, 2011 to 59.2 percent for the three months ended March 31, 2012.

The provision for income taxes increased $156,000 for the first quarter of 2012 compared to the prior year period, as a result of the increase in earnings from operations, which was partially offset by a decrease in the effective tax rate of approximately 39.1 percent as of March 31, 2011 to 38.1 percent as of March 31, 2012.


(in thousands, except ratios) March 31, December 31, March 31,
2012 2011 2011
Total Investments $ 128,967 $ 130,645 $ 118,171
Federal funds sold 1,875 64 5,721
Loans, net of unearned income 168,774 156,830 134,153
Allowance for loan losses 2,372 2,148 1,895
Total assets 323,860 299,185 282,672
Total deposits 269,920 245,810 240,083
Nonperforming assets 1,928 910 839
Allowance for loan losses to total net loans 1.41 % 1.37 % 1.41 %
Nonperforming assets to total assets 0.60 % 0.30 % 0.30 %

The Bank increased loans, net of unearned income, and the investment portfolio by $34.6 million and $10.8 million, respectively, as of March 31, 2012 compared to the prior year period. The increases in both the loan and investment portfolios were partially funded by the $29.8 million, or 12.4 percent, increase in deposits to $269.9 million. In addition, the Bank's growth in both loans and investments was also funded by an increase of $7.0 million in Federal Home Loan Bank of New York advances and the decrease in federal funds sold of $3.8 million, as of March 31, 2012 compared to March 31, 2011.


EQUITY - Unaudited As of
(in thousands, except ratios) March 31,
2012 2011
Tier 1 Capital $ 36,737 $ 32,027
Total Stockholders' Equity 37,154 33,130
Book value per common share 3.72 3.31
Tier 1 Leverage Ratio 11.7 % 12.0 %

At March 31, 2012, the Bank had $37.2 million in stockholders' equity, which is an increase of $4.0 million, or 12.1 percent from March 31, 2011. As of March 31, 2012, the Bank's leverage ratio was 11.7 percent and as a result, the Bank is considered a well-capitalized institution under Federal regulatory requirements.

Greater Hudson Bank's annual Stockholder's Meeting will be held Tuesday, May 22, 2012 at 10:00 a.m. at the Salvation Army Conference Center in West Nyack, NY. All shareholders and interested parties are invited to attend.

Greater Hudson Bank, N.A, founded in 2002, is headquartered in Middletown, New York. The Bank has 5 branches which are located in Middletown, Monroe and Warwick, Orange County, New York, Bardonia, Rockland County, New York, and White Plains, Westchester County, New York. The Bank is chartered by the Office of the Comptroller of the Currency and its deposits are insured by the Federal Deposit Insurance Corporation. As evidence of the Bank's financial strength, Greater Hudson Bank has been recognized with a superior rating by the country's leading independent bank rating and research firm, BauerFinancial, Inc. Further information can be found on the Bank's website at

Forward-Looking Statements: This Press Release may contain certain statements which are not historical facts or which concern the Bank's future operations or economic performance and which are to be considered forward-looking statements. Any such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Bank cautions that all forward-looking statements involve risk and uncertainties, and that actual results may differ from those indicated in the forward-looking statements as a result of various factors, such as changing economic and competitive conditions and other risk and uncertainties. In addition, any statements in this news release regarding historical stock price performance are not indicative of or guarantees of future price performance.

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