Non-interest expense increased $437,000 and $1.4 million for the three and twelve months ended December 31, 2012 compared to the prior year periods. The increase was driven by increases in salaries, occupancy expense, communication expense, supplies, other outside services expense, and marketing expense associated with the opening of the new branch and loan center in Monroe, NY, as well as to support the Bank's overall growth in its balance sheet.
The provision for income taxes decreased $24,000 and $127,000 for the three and twelve months ended December 31, 2012 compared to the prior year periods as a result of lower net income and a decrease in the effective tax rate for both the fourth quarter and year ended December 31, 2012 compared to the prior year periods.
BALANCE SHEET & CREDIT QUALITY
SELECTED BALANCE SHEET DATA - Unaudited: As of(in thousands, except ratios) December 31, December 31, 2012 2011 ------------ ------------Total Investments $ 107,974 $ 130,645Federal funds sold 25 64Loans, net of unearned income 180,084 156,830Allowance for loan losses 2,572 2,148Total assets 309,175 299,185Total deposits 245,041 245,810Nonperforming assets 629 910Allowance for loan losses to total net loans 1.43% 1.37%Nonperforming assets to total assets 0.20% 0.30%
The Bank increased loans, net of unearned income $23.3 million as of December 31, 2012 compared to the prior year period. The increase in the loan portfolio was funded primarily by net security sales, principal pay downs, and redemptions in the investment portfolio, which decreased by $22.7 million as of December 31, 2012. The Bank also increased Federal Home Loan Bank of New York advances by $7.7 million as of December 31, 2012 compared to December 31, 2011.
The Bank's total assets have increased over the past year from $299.2 million to $309.2 million and the Bank's total non-performing assets have decreased from $910,000 to $629,000. As a result, the Bank's nonperforming assets to total assets ratio has decreased from 0.30 percent to 0.20 percent over the past year.
EQUITY - Unaudited As of (in thousands, except ratios) December 31, 2012 2011 --------- --------- Tier 1 Capital $ 38,090 $ 35,727 Total Stockholders' Equity 38,997 36,634 Book value per common share 3.90 3.66 Tier 1 Leverage Ratio 11.9% 11.9%
At December 31, 2012, the Bank had $39.0 million in stockholders' equity, representing an increase of $2.4 million from December 31, 2011. As of December 31, 2012, the Bank's leverage ratio was 11.9 percent and as a result, the Bank continues to be considered a well-capitalized institution under Federal regulatory requirements.
Greater Hudson Bank, N.A. founded in 2002, is headquartered in Middletown, New York. The Bank has 5 branches which are located in Middletown, Warwick and Monroe, 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. Further information can be found on the Bank's website at www.GreaterHudsonBank.com.
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.