HispanicBusiness

"Our balance sheet remains very solid with Tier 1 leverage of 11.9% at yearend. In addition, we saw improvement in the Bank's non-performing assets which declined nearly 31% year over year while our non-performing assets to total assets ratio improved from 0.30% to 0.20%."

Mr. Wiggins further commented, "As we enter 2013, we continue to see opportunities within our markets to provide our personalized, friendly and responsive service to the businesses and consumers who call the Hudson Valley their home. With the addition of new products and services, including SBA lending and other business services, we are creating more reasons for local businesses to make Greater Hudson their banking choice in the Hudson Valley."

EARNINGS

*Results Unaudited              Three months Ended      Twelve months Ended                                   December 31,            December 31,                                       (in thousands, except ratios)SUMMARY OF OPERATIONS DATA:      2012        2011        2012        2011                              ----------  ----------  ----------  ----------Net interest income           $    2,767  $    2,573  $   11,397  $    9,933Provision for loan losses             51         140         518         404Noninterest income                    78          43         188         216Gains on securities transactions                        180          88         436         528Noninterest Expense                1,974       1,537       7,499       6,067                              ----------  ----------  ----------  ----------Income before income taxes         1,000       1,027       4,004       4,206Provision for income taxes           371         395       1,497       1,624                              ----------  ----------  ----------  ----------Net income                    $      629  $      632  $    2,507  $    2,582                              ==========  ==========  ==========  ==========Efficiency Ratio                 69.4%       58.8%       64.7%       59.8%*Results Unaudited              Three months Ended      Twelve months Ended                                   December 31,            December 31,                                       (in thousands, except ratios)AVERAGE BALANCE SHEET DATA:      2012        2011        2012        2011                              ----------  ----------  ----------  ----------Earning Assets                $  303,094  $  264,478  $  305,592  $  272,709Total Interest Bearing Liabilities                     255,380     243,018     260,303     236,482Net interest spread                3.51%       3.81%       3.66%       3.52%Net interest margin                3.65%       3.89%       3.73%       3.64%

Net interest income increased for both the three and twelve months ended December 31, 2012 compared to the 2011 comparable periods as a result of an increase in the balance of the Bank's average earning assets. The increase in net interest income was partially offset by an increase in average interest bearing liabilities for both the three and twelve months ended December 31, 2012 compared to the 2011 comparable period.

As a result of market conditions, gains on securities transactions increased $92,000 for the three months ended December 31, 2012. However, for the year ended December 31, 2012, gains on securities transactions decreased $92,000.

The provision for credit losses increased $114,000 for the twelve months ended December 31, 2012 compared to the 2011 comparable period, primarily due to an increase in net loans outstanding for 2012 of $23.3 million and an increase in charged off loans of $73,000.