HispanicBusiness

MIDDLETOWN, NY -- (Marketwire) -- 01/31/13 -- Greater Hudson Bank, N.A. (the "Bank") (OTCQB: GHDS), with assets of $309.2 million, today reported net income of $629,000 or $0.06 per common share for the fourth quarter of 2012 and $2.5 million or $0.25 per common share for the twelve months ended December 31, 2012. Both the quarterly and annual results are consistent with those reported for the 2011 comparable periods, despite continued economic weakness and the low interest rate environment. This marks the fourth straight year of profitable operations for the Hudson Valley, N.Y. based Bank.

Return on average common stockholders' equity was 6.38 percent and 6.56 percent for the fourth quarter and twelve months ended December 31, 2012, respectively. The Bank is very proud to report that its first ever special cash dividend of $0.05 per share was paid to shareholders with a record date of December 10, 2012 on December 21, 2012. Since the Bank's recapitalization in October of 2008, the Bank has turned an accumulated deficit of $8.8 million into $525,000 in retained earnings net of the dividend payment.

"We are very pleased that we were able to provide our first ever cash dividend in the Bank's ten year history. Many of our loyal shareholders have expressed gratitude in receiving this special cash dividend," said Kenneth J. Torsoe, chairman of the board of directors of Greater Hudson Bank. Mr. Torsoe added, "We are committed to maximizing our return to investors while seeking opportunities to position ourselves as the banking choice in the Hudson Valley."

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

•Total assets increased $10.0 million, or 3.3 percent, to $309.2 million. •Net loans increased $23.3 million, or 14.8 percent, to $180.1 million. •Investments decreased $22.7 million, or 17.4 percent, to $108.0 million. •Deposits decreased $769,000, or 0.3 percent, to $245.0 million. •Net interest income increased $194,000, or 7.5 percent, to $2.8 million. •Non-interest expense increased $437,000, or 28.4 percent, to $2.0 million. •Provision for income taxes decreased $24,000, or 6.0 percent, to $371,000.

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

•Net interest income increased $1.5 million, or 14.7 percent, to $11.4 million. •Provision for loan losses increased $114,000 or 28.2 percent, to $518,000. •Non-interest expense increased $1.4 million, or 23.6 percent, to $7.5 million. •Provision for income taxes decreased $127,000, or 7.8 percent, to $1.5 million.

Eric J. Wiggins, president and CEO of Greater Hudson Bank stated, "Our fourth year of profitability was highlighted with the payment of our first ever cash dividend. We were also successful increasing our net interest income by nearly 15% year over year. We accomplished this in part by re-positioning our earning assets from lower yielding investment securities into higher yielding loans with loans outstanding growing nearly 15% year over year to $180 million. Our loan to deposit ratio increased significantly from 62.9% to 72.4% and our loan to asset ratio increased from 51.7% to 57.4%." Mr. Wiggins continued, "Additional expenses related to our new branch location, a new loan operations center and other staffing additions impacted the year's net earnings."