Financial highlights as of and for the nine months ended September 30, 2012 compared to the September 30, 2011 period are as follows:
•Net interest income increased $1.3 million, or 17.3 percent, to $8.6 million. •Provision for loan losses increased $202,000 or 76.6 percent, to $466,000. •Non-interest expense increased $996,000, or 22.0 percent, to $5.5 million. •Provision for income taxes decreased $103,000, or 8.4 percent, to $1.1 million.
Eric J. Wiggins, president and CEO of Greater Hudson Bank, stated, "Our earnings this year have been impacted primarily by additional expansion and staffing costs, however, the extended low interest rate environment has placed further pressure on margins. In spite of this, we have been successful in maintaining our net interest margin as we have transitioned our balance sheet from lower yielding investment securities into additional loans to local businesses and property owners. Our efforts have resulted in net loans outstanding increasing 30% year-over-year and enabled us to grow our net interest income over 17% year-over-year. Excluding security gains, the Bank's pre-tax operating income has increased 18% when compared with the 3rd quarter in 2011."
"In addition, our efficiency ratio of 58.9% for the 3rd quarter 2012 has improved from the 2nd quarter 2012 ratio of 72.2% as earnings have begun to absorb the additional expenses related to our new branch and loan center, as well as staffing added in the first half of the year."
Mr. Wiggins further commented, "The Bank's non-performing assets declined significantly since the 2nd quarter as the Bank received payment in full on a large loan relationship during the 3rd quarter. Non-performing assets declined from $1.56 million to $725 thousand and the ratio of non-performing assets to total assets improved from 0.47% to 0.22% for the same period. The Bank had no additional OREO properties following the disposal of its only OREO in the second quarter."
EARNINGS
*Results Unaudited Three months Ended Nine months Ended September 30, September 30, (in thousands, except ratios)SUMMARY OF OPERATIONS DATA: 2012 2011 2012 2011 --------- --------- --------- ---------Net interest income $ 3,039 $ 2,557 $ 8,630 $ 7,360Provision for loan losses 32 31 466 264Noninterest income 45 64 110 173Net gains on securities transactions 8 440 255 440Noninterest Expense 1,816 1,545 5,526 4,530 --------- --------- --------- ---------Income before income taxes 1,244 1,485 3,003 3,179Provision for income taxes 467 567 1,126 1,229 --------- --------- --------- ---------Net income $ 777 $ 918 $ 1,877 $ 1,950 ========= ========= ========= =========Efficiency Ratio 58.9% 58.9% 63.2% 60.1%AVERAGE BALANCE SHEET DATA: 2012 2011 2012 2011 --------- --------- --------- ---------Earning Assets $ 312,662 $ 267,074 $ 306,431 $ 269,185Total Interest Bearing Liabilities 263,743 247,398 261,956 234,279Net interest spread 3.74% 3.77% 3.63% 3.53%Net interest margin 3.89% 3.83% 3.75% 3.65%
