EARNINGS
*Results Unaudited Three months Ended March 31, (in thousands, except ratios)SUMMARY OF OPERATIONS DATA: 2013 2012 ------------ ------------Net interest income $ 2,673 $ 2,847Provision for loan losses (34) 222Noninterest income 127 24Net gains on securities transactions - 196Noninterest Expense 2,017 1,699 ------------ ------------Income before income taxes 817 1,146Provision for income taxes 298 437 ------------ ------------Net income $ 519 $ 709 ============ ============Efficiency Ratio 72.0% 59.2%AVERAGE BALANCE SHEET DATA: 2013 2012 ------------ ------------Earning Assets $ 299,142 $ 295,789Total Interest Bearing Liabilities 249,721 256,175Net interest spread 3.50% 3.73%Net interest margin 3.57% 3.85%
The decrease in net income from the prior period was primarily attributed to a decrease in net interest income of $174,000 as a result of a lower rate environment than the prior year as well as an increase to non-interest expense of $318,000 and a decrease to security gains over the prior period of $196,000, as no securities were sold in the 2013 first quarter. The overall decrease was offset by a $103,000 increase in fee income for the first quarter of 2013, a decrease to the provision to loan losses of $256,000 and a decline in the tax provision over the prior period of $139,000 as a result of lower net income compared to the previous year.
The $318,000 increase in non-interest expense for the three months ended March 31, 2013 compared to the prior year period was predominantly driven by increases in salaries and payroll taxes, occupancy expense, data processing, FDIC insurance, communications expense and the reserve for unfunded commitments. These increases were partially offset by decreases in other outside services expense and marketing expense.
BALANCE SHEET & CREDIT QUALITY
SELECTED BALANCE SHEET DATA - Unaudited: As of(in thousands, except ratios) March 31, Dec. 31, March 31, 2013 2012 2012 ---------- ---------- ----------Total Investments $ 107,264 $ 107,974 $ 128,967Federal funds sold - 25 1,875Loans, net of unearned income 182,024 180,084 168,774Allowance for loan losses 2,531 2,572 2,372Total assets 315,962 309,175 323,860Total deposits 251,751 245,041 269,920Borrowings 22,707 22,720 15,000Nonperforming assets 1,861 629 1,928Allowance for loan losses to total net loans 1.39% 1.43% 1.41%Nonperforming assets to total assets 0.59% 0.20% 0.60%
The Bank increased loans, net of unearned income, by $13.2 million as of March 31, 2013 compared to the prior year period. The increase in the loan portfolio was funded primarily by security sales, principal pay downs, and redemptions in the investment portfolio, which decreased by $21.7 million as of March 31, 2013. The Bank also increased Federal Home Loan Bank of New York advances by $7.7 million as of March 31, 2013 compared to March 31, 2012.
The Bank's total deposits have decreased over the past year from $269.9 million to $251.8 million as a result of the Bank's efforts to control its cost of funds. As a result, the Bank's total assets have declined $7.9 million from March 31, 2012 to March 31, 2013.
CAPITAL
EQUITY - Unaudited As of(in thousands, except ratios) March 31, 2013 2012 -------------- --------------Tier 1 Capital $ 38,614 $ 36,737Total Stockholders' Equity 39,362 37,154Book value per common share 3.93 3.72Tier 1 Leverage Ratio 12.2% 11.7%
At March 31, 2013, the Bank had $39.4 million in stockholders' equity, representing an increase of $2.2 million from March 31, 2012. As of March 31, 2013, the Bank's leverage ratio was 12.2 percent and as a result, the Bank continues to be considered a well-capitalized institution under Federal regulatory requirements.
Greater Hudson Bank's annual Stockholder's Meeting will be held Thursday, May 23, 2013 at 10:00 a.m. at the Salvation Army Conference Center in West Nyack, NY. All shareholders and interested parties are invited to attend.
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.
Contact:
Jon Lieb
(914) 741-2770
