MIDDLETOWN, NY -- (Marketwired) -- 04/30/13 -- Greater Hudson Bank, N.A. (the "Bank") (OTCQB: GHDS), with assets of $316.0 million, today reported net income of $519,000 or $0.05 per common share for the first quarter of 2013 compared to $709,000 or $0.07 per common share for the 2012 first quarter. Return on average common stockholders' equity was 5.28 percent for the first quarter ended March 31, 2013 compared to 7.61 percent for the first quarter ended March 31, 2012.
"Our first quarter numbers reflect a profitable start to 2013," stated Kenneth J. Torsoe, chairman of the board of directors of Greater Hudson Bank. Mr. Torsoe further stated, "We continue to receive positive feedback from our clients in recognition of our commitment to the Hudson Valley. Listening to the needs of our clients and seeing opportunities in our markets, we are planning on making additional investments in our lending and retail areas by increasing our lending staff and enhancing our technology over the next year. We hope that these new additions and endeavors will continue to highlight us as the banking choice in the Hudson Valley."
Financial highlights as of and for the three months ended March 31, 2013 compared to the March 31, 2012 period are as follows:
•Total assets decreased $7.9 million, or 2.4 percent, to $316.0 million. •Net loans increased $13.2 million, or 7.9 percent, to $182.0 million. •Investments decreased $21.7 million, or 16.8 percent, to $107.3 million. •Deposits decreased $18.2 million, or 6.7 percent, to $251.8 million. •Net interest income decreased $174,000, or 6.1 percent, to $2.7 million. •Non-interest expense increased $318,000, or 18.7 percent, to $2.0 million. •Provision for income taxes decreased $139,000, or 31.8 percent, to $298,000.
Eric J. Wiggins, President and CEO of Greater Hudson Bank stated, "On a year over year basis we have reported net loan growth of nearly 8% and as we focus on businesses located within the Hudson Valley, our C&I loan portfolio has increased over 16% since year end." Mr. Wiggins added, "We are seeing early success in 2013 from our small business initiatives. We are very encouraged by our pipeline and expect our loan portfolio to continue to grow as we remain focused on the Hudson Valley."
Mr. Wiggins added, "We continue to experience margin compression given the extended low interest rate environment. Also, earnings in the first quarter of 2013 were not aided by any securities gains compared with $196 thousand in gains in the first quarter of 2012. We are working to offset the effects of the current interest rate environment by continuing to capitalize on banking relationship opportunities in our markets, expand our loan portfolio, manage our cost of funds and augment our earnings with fee income."
Mr. Wiggins further commented, "During the quarter we saw an increase in our non-performing loans represented primarily by one loan relationship. The Bank's overall credit quality remains strong evidenced by our ratio of non-performing assets to total assets of 0.59% for the quarter which compares favorably to many of our peers."
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