YONKERS, N.Y., Oct. 19 /PRNewswire-FirstCall/ -- Hudson Valley Holding Corp. (Nasdaq: HUVL), parent of Hudson Valley Bank and New York National Bank, has announced earnings of $6.9 million for the third quarter of 2009, compared to $9.0 million for the same period in 2008, and compared to $0.3 million for the second quarter of 2009. Diluted earnings per share totaled $0.63 for the third quarter of 2009, compared to $0.80 for the same period in 2008 and compared to $0.03 for the second quarter of 2009. The third quarter 2009 results benefited from moderating credit trends, as compared to the second quarter of 2009, a stable net interest margin, modest loan growth and strong core deposit growth.
For the nine months ended September 30, 2009, net income was $13.8 million compared to $25.4 million for the same period in 2008. Diluted earnings per share totaled $1.27 for the first nine months of 2009 compared to $2.25 for the same period in 2008.
"We are pleased with our financial results for the quarter which we believe portends positively for the future," President and Chief Executive Officer James J. Landy said. "Our core business continues to perform very well. Deposits grew a robust 18% for the first nine months of 2009, as total deposits eclipsed $2.0 billion for the first time and core deposits grew $65 million during the third quarter." Mr. Landy stated that new customer acquisitions and enhancements to existing customer relationships were key factors contributing to the deposit growth.
"We believe in investing in the future," Mr. Landy commented. "During the third quarter, we opened two new branches, one in Eastchester, NY and one in Milford, CT; and, in early October we opened a new branch in Stratford, CT., giving us 36 branches throughout the New York metropolitan area." He went on to say "This type of investment will continue to provide us with future growth of our core business and is a critical element of our long term strategic plan."
"We are convinced that our proven business model of providing our customers with superior service and innovative products will allow us to remain financially strong," Mr. Landy emphasized. "Customers have shown through their actions that they value Hudson Valley's brand of community banking."
Net income for the three month period ended September 30, 2009 was $6.9 million or $0.63 per diluted share, a decrease of $2.1 million or 23.3 percent compared to $9.0 million or $0.80 per diluted share for the three month period ended September 30, 2008. Net income for the nine month period ended September 30, 2009 was $13.8 million or $1.27 per diluted share, a decrease of $11.6 million or 45.7 percent compared to $25.4 million or $2.25 per diluted share for the nine month period ended September 30, 2008. Net interest income increased for the nine month period ended September 30, 2009 compared to the same period in the prior year and decreased slightly for the three month period ended September 30, 2009 compared to the same period in the prior year. Although the Company was able to sustain and grow net interest income, it experienced significant declines in net income for both the three and nine month periods ended September 30, 2009, compared to the same periods in the prior year. These declines resulted primarily from sharply higher provisions for loan losses in 2009, significant adjustments for other-than-temporary impairment of certain investments, higher noninterest expenses, including a significant increase in FDIC deposit insurance premiums, and lower noninterest income.
Total deposits increased $330.5 million during the nine month period ended September 30, 2009. Approximately $101 million of this growth resulted from the transfer of certain money market mutual fund investments of existing customers to interest bearing demand deposits. This transfer was primarily due to the recent increase in FDIC insurance coverage of certain deposit products which was part of the legislation enacted in response to the current economic crisis. In addition to the above mentioned deposit growth, the Company also experienced significant growth in new customers both in existing branches and new branches added during 2008 and 2009. This growth was partially offset by some declines in balances of existing customers, primarily those customers directly involved in or supported by the real estate industry. Proceeds from deposit growth were used primarily to reduce long term and short term borrowings and to fund loan growth.
Total loans increased $85.4 million during the nine month period ended September 30, 2009 as the Company continued to provide lending availability to new and existing customers. This growth, however, was accompanied by a continued slowdown in payments of certain loans, such as construction loans, whose repayment is often dependent on sales of completed real estate projects, as well as additional increases in delinquent and nonperforming loans in other sectors of the loan portfolio which have also been adversely impacted by the severe economic conditions currently affecting the real estate markets.
The Company's noninterest income decreased in 2009, primarily as a result of a significant increase in recognized impairment charges related to the Company's investments in certain pooled trust preferred securities which have been adversely affected by the effects of the current economic downturn in the financial services industry, and decreases in investment advisory fees of its subsidiary A.R. Schmeidler & Co., Inc., a registered investment advisory firm located in Manhattan, New York. Fee income from this source experienced sharp declines beginning in the fourth quarter of 2008 and continued to decline during the first half of 2009 as a result of the effects of significant declines in both domestic and international markets. Although there has been recent improvement in the financial markets, significant additional improvement will be necessary for this source of noninterest income to return to past levels. At September 30, 2009, A.R. Schmeidler & Co., Inc. had approximately $1.2 billion of assets under management compared to approximately $1.3 billion at September 30, 2008.
Nonperforming assets have increased dramatically, particularly during the first half of 2009 as overall asset quality continued to be adversely affected by the current state of the economy. During the nine month period ended September 30, 2009, the Company has experienced significant increases in delinquent and nonperforming loans and a continuation of the slowdowns in repayments and declines in the loan-to-value ratios on existing loans which began in the second half of 2008. The severity of the economic downturn, particularly noted during the second quarter of 2009, has extended well beyond the sub-prime lending issue, and has resulted in severe declines in the demand for and values of virtually all commercial and residential real estate properties. These declines, together with the present shortage of available residential mortgage financing, have put downward pressure on the overall asset quality of virtually all financial institutions, including the Company. Continuation or worsening of such conditions would have additional significant adverse effects on asset quality in the future.
The 500 basis point reduction of short-term interest rates from September 2007 through December 2008 resulted in a steeper yield curve by late 2008 and into the third quarter of 2009. However, with interest rates at historical low levels, availability of long-term financing at interest rates attractive to the Company has been limited. This has resulted in many financial institutions including the Company replacing maturing long-term borrowings with short-term debt. While replacing long-term borrowings with lower cost short-term debt may have a positive impact on net interest income in the near term, this condition presents additional challenges in the ongoing management of interest rate risk to the extent that these borrowings are utilized to fund longer term assets at fixed rates.
As a result of the effects of changes in interest rates, activity in the Company's core businesses of loans and deposits, an increase in loans as a percentage of total interest earning assets and other asset/liability management activities, tax equivalent basis net interest income decreased slightly by $0.2 million or 0.7 percent to $29.6 million for the three month period ended September 30, 2009, compared to $29.8 million for the same period in the prior year, and increased by $3.7 million or 4.4 percent to $88.4 million for the nine month period ended September 30, 2009, compared to $84.7 million for the same period in the prior year. The effect of the adjustment to a tax equivalent basis was $1.0 million and $3.2 million for the three and nine month periods ended September 30, 2009, respectively, compared to $1.0 million and $3.5 million for the same periods in the prior year.
Non interest income, excluding net gains and losses on securities transactions and recognized impairment charges, was $3.9 million for the three month period ended September 30, 2009, a decrease of $1.6 million or 29.1 percent compared to $5.5 million for the same period in the prior year. Non interest income, excluding net gains and losses on securities transactions and recognized impairment charges, was $11.9 million for the nine month period ended September 30, 2009, a decrease of $3.4 million or 22.2 percent compared to $15.3 million for the same period in the prior year. The decreases were primarily due to a reduction in the investment advisory fees of A.R. Schmeidler & Co., Inc. Investment advisory fee income is expected to remain at reduced levels at least in the near term, due to the ongoing difficulties in the global financial markets. Non interest income also included recognized pre-tax other-than-temporary impairment charges on securities available for sale of $0.6 million and $4.1 million, respectively, for the three and nine month periods ended September 30, 2009 and $1.1 million and $1.5 million, respectively, for the three and nine month periods ended September 30, 2008. The 2009 adjustments were related to the Company's investments in pooled trust preferred securities. The 2008 adjustments included a $1.1 million adjustment to a pooled trust preferred security and a $0.5 million adjustment related to the Company's investment in a mutual fund which was sold in April 2008 without additional loss. The Company has decided to hold its investments in pooled trust preferred securities as it does not believe that the current market quotes for these investments are indicative of their underlying value.
Non interest expense was $18.9 million for the three month period ended September 30, 2009, an increase of $0.7 million or 3.8 percent compared to $18.2 million for the same period in the prior year. Non interest expense was $57.0 million for the nine month period ended September 30, 2009, an increase of $4.1 million or 7.8 percent compared to $52.9 million for the same period in the prior year. Increases resulting from the Company's continued investment in its branch offices, technology and personnel to accommodate growth in loans and deposits, the expansion of services and products available to new and existing customers and the upgrading of certain internal processes were effectively offset by other cost saving measures implemented by the Company during 2009, however, overall noninterest expense increased primarily due to a significant increase in FDIC deposit premiums. These additional premiums were imposed by the FDIC to replenish shortfalls in the FDIC Deposit Insurance Fund which has resulted from the current economic crisis. Additional significant premium increases are possible for the remainder of 2009 and perhaps beyond.
In today's economic and regulatory environment, banking regulators, including the Office of the Comptroller of the Currency (OCC), which is the primary federal regulator of the Banks, are directing greater scrutiny to banks with higher levels of commercial real estate loans. Due to the high percentage of commercial real estate loans in our portfolio, we are among the banks subject to such greater regulatory scrutiny. As a result of this concentration, the increase in the level of our non-performing loans, and the potential for further possible deterioration in our loan portfolio, we have expected since the end of the second quarter of 2009 that our Banks would be required by the OCC to maintain higher capital levels. In accordance with our expectations, as of October 13, 2009, the OCC required HVB to maintain, by December 31, 2009, a total risk-based capital ratio of at least 12.0% (compared to 10.0% for a well capitalized bank), a Tier 1 risk-based capital ratio of at least 10.0% (compared to 6.0% for a well capitalized bank), and a Tier 1 leverage ratio of at least 8.0% (compared to 5.0% for a well capitalized bank). These capital levels are in excess of "well capitalized" levels generally applicable to banks under current regulations.
To meet these increased capital ratios, the Company commenced an underwritten offering for $90 million of common stock and expects to grant the underwriters a 15% over-allotment option for 30 days after the closing.
The offering was temporarily postponed to hold a special meeting of shareholders to amend the Certificate of Incorporation to eliminate preemptive rights. The shareholders meeting will be held at 10:00AM ET on October 19, 2009. The Company expects to announce in its earnings conference call at 11:30AM ET on October 19, 2009 the status of the offering. If the offering is recommenced and is successful, earnings per share and dividends per share are expected to be reduced as a result of the increased number of shares outstanding and because we do not currently anticipate increasing the aggregate amount of our dividends.
About Hudson Valley Holding Corp.
Hudson Valley Holding Corp. (HUVL), headquartered in Yonkers, NY, is the parent company of two independently owned local banks, Hudson Valley Bank (HVB) and New York National Bank (NYNB). Hudson Valley Bank is a Westchester based bank with more than $2.4 billion in assets, serving the metropolitan area with 33 branches located in Westchester, Rockland, the Bronx, Manhattan, Queens and Brooklyn in New York and Fairfield County and New Haven County, in Connecticut. HVB specializes in providing a full range of financial services to businesses, professional services firms, not-for-profit organizations and individuals; and provides investment management services through a subsidiary, A. R. Schmeidler & Co., Inc. NYNB is a Bronx based bank with approximately $140 million in assets serving the local communities of the Bronx and Upper Manhattan with three branches. NYNB provides a full range of financial services to individuals, small businesses and not-for-profit organizations in its local markets. Hudson Valley Holding Corp.'s common stock is traded on the NASDAQ Global Select Market under the ticker symbol "HUVL". Additional information on Hudson Valley Bank and NYNB Bank can be obtained on their respective web-sites at www.hudsonvalleybank.com and www.nynb.com.
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements refer to future events or our future financial performance. We have attempted to identify forward-looking statements by terminology including "anticipates," "believes," "can," "continue," "expects," "intends," "may," "plans," "potential," "predicts," "should" or "will" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or the banking industry's actual results, level of activity, performance or achievements to be materially different from any future results, level of activity, performance or achievements expressed or implied by these forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include those identified in our Annual Report on Form 10-K for the year ended December 31, 2008 and our subsequent Quarterly Reports on Form 10-Q.
HUDSON VALLEY HOLDING CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Dollars in thousands, except per share amounts
Three Months Ended
September 30,
2009 2008
---- ----
Interest Income:
Loans, including fees $27,822 $27,699
Securities:
Taxable 4,203 5,961
Exempt from Federal income taxes 1,756 2,001
Federal funds sold 38 97
Deposits in banks 20 18
-- --
Total interest income 33,839 35,776
------ ------
Interest Expense:
Deposits 3,541 4,115
Securities sold under repurchase agreements and
other short-term borrowings 73 753
Other borrowings 1,579 2,155
----- -----
Total interest expense 5,193 7,023
----- -----
Net Interest Income 28,646 28,753
Provision for loan losses 2,732 1,040
----- -----
Net interest income after provision for loan losses 25,914 27,713
------ ------
Non Interest Income:
Service charges 1,368 1,401
Investment advisory fees 1,934 3,264
Recognized impairment charge on securities
available for sale (includes $1,782 of total
losses less $1,185 of losses on securities
available for sale, recognized in other
comprehensive income at September 30, 2009) (597) (1,062)
Other income 636 851
--- ---
Total non interest income 3,341 4,454
----- -----
Non Interest Expense:
Salaries and employee benefits 9,551 10,774
Occupancy 2,143 1,838
Professional services 1,220 1,231
Equipment 1,233 1,040
Business development 495 526
FDIC assessment 915 279
Other operating expenses 3,374 2,500
----- -----
Total non interest expense 18,931 18,188
------ ------
Income Before Income Taxes 10,324 13,979
Income Taxes 3,426 4,930
----- -----
Net Income $6,898 $9,049
====== ======
Basic Earnings Per Common Share $0.65 $0.83
Diluted Earnings Per Common Share 0.63 0.80
HUDSON VALLEY HOLDING CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Dollars in thousands, except per share amounts
Nine Months Ended
September 30,
2009 2008
---- ----
Interest Income:
Loans, including fees $82,213 $78,024
Securities:
Taxable 14,133 19,005
Exempt from Federal income taxes 5,945 6,512
Federal funds sold 62 820
Deposits in banks 32 81
-- --
Total interest income 102,385 104,442
------- -------
Interest Expense:
Deposits 11,096 14,866
Securities sold under repurchase agreements and other
short-term borrowings 474 1,691
Other borrowings 5,605 6,696
----- -----
Total interest expense 17,175 23,253
------ ------
Net Interest Income 85,210 81,189
Provision for loan losses 17,224 3,485
------ -----
Net interest income after provision for loan losses 67,986 77,704
------ ------
Non Interest Income:
Service charges 4,373 4,256
Investment advisory fees 5,576 8,866
Recognized impairment charge on securities available
for sale (includes $11,857 of total losses less
$7,708 of losses on securities available for sale,
recognized in other comprehensive income at September
30, 2009) (4,149) (1,547)
Realized gain on securities available for sale, net 52 148
Other income 1,976 2,177
----- -----
Total non interest income 7,828 13,900
----- ------
Non Interest Expense:
Salaries and employee benefits 29,769 30,912
Occupancy 6,148 5,493
Professional services 3,280 3,480
Equipment 3,273 3,129
Business development 1,535 1,626
FDIC assessment 4,554 561
Other operating expenses 8,460 7,657
----- -----
Total non interest expense 57,019 52,858
------ ------
Income Before Income Taxes 18,795 38,746
Income Taxes 4,995 13,354
----- ------
Net Income $13,800 $25,392
======= =======
Basic Earnings Per Common Share $1.30 $2.33
Diluted Earnings Per Common Share 1.27 2.25
HUDSON VALLEY HOLDING CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
Dollars in thousands, except share amounts
September December
30, 31,
2009 2008
---- ----
ASSETS
Cash and due from banks $81,070 $45,428
Federal funds sold 68,671 6,679
Securities available for sale at estimated fair
value (amortized cost of $519,568 in 2009 and
$647,279 in 2008) 525,214 642,363
Securities held to maturity at amortized cost
(estimated fair value of $24,157 in 2009 and
$29,546 in 2008) 22,909 28,992
Federal Home Loan Bank of New York (FHLB) Stock 8,606 20,493
Loans (net of allowance for loan losses of
$34,845 in 2009 and $22,537 in 2008) 1,750,917 1,677,611
Accrued interest and other receivables 15,748 16,357
Premises and equipment, net 30,667 30,987
Other real estate owned 5,063 5,467
Deferred income taxes, net 17,505 14,030
Bank owned life insurance 24,137 22,853
Goodwill 20,933 20,942
Other intangible assets 3,481 4,097
Other assets 3,869 4,591
----- -----
TOTAL ASSETS $2,578,790 $2,540,890
========== ==========
LIABILITIES
Deposits:
Non interest-bearing $723,663 $647,828
Interest-bearing 1,446,148 1,191,498
--------- ---------
Total deposits 2,169,811 1,839,326
Securities sold under repurchase agreements and
other short-term borrowings 55,232 269,585
Other borrowings 126,790 196,813
Accrued interest and other liabilities 26,239 27,665
------ ------
TOTAL LIABILITIES 2,378,072 2,333,389
--------- ---------
STOCKHOLDERS' EQUITY
Common stock, $0.20 par value; authorized
25,000,000 shares; outstanding 10,556,554 and
10,871,609 shares in 2009 and 2008,
respectively 2,371 2,367
Additional paid-in capital 250,726 250,129
Retained earnings 3,482 2,084
Accumulated other comprehensive income (loss),
net 1,703 (5,144)
Treasury stock, at cost; 1,299,414 and 964,763
shares in 2009 and 2008, respectively (57,564) (41,935)
-------- --------
Total stockholders' equity 200,718 207,501
------- -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,578,790 $2,540,890
========== ==========
Average Balances and Interest Rates
The following table sets forth the average balances of interest earning assets and interest bearing liabilities for the three month periods ended September 30, 2009 and September 30, 2008, as well as total interest and corresponding yields and rates. The data contained in the table has been adjusted to a tax equivalent basis, based on the Company's federal statutory rate of 35 percent in 2009 and 2008.
(000's except percentages)
Three Months Ended September 30,
--------------------------------
2009 2008
---- ----
Average Interest Yield/ Average Interest Yield/
Balance (3) Rate Balance (3) Rate
------- --- ---- ------- --- ----
ASSETS
Interest earning
assets:
Deposits in
Banks $40,573 $20 0.20% $5,924 $18 1.22%
Federal
funds sold 75,506 38 0.20% 11,103 97 3.49%
Securities:(1)
Taxable 378,847 4,203 4.44% 481,155 5,961 4.96%
Exempt from
federal income
taxes 170,326 2,701 6.34% 194,135 3,078 6.34%
Loans, net(2) 1,739,165 27,822 6.40% 1,542,239 27,699 7.18%
--------- ------ --------- ------
Total interest
earning
assets 2,404,417 34,784 5.79% 2,234,556 36,853 6.60%
--------- ------ --------- ------
Non interest
earning assets:
Cash & due
from banks 41,675 50,479
Other assets 115,189 105,878
Total non
interest
earning
assets 156,864 156,357
------- -------
Total assets $2,561,281 $2,390,913
========== ==========
LIABILITIES
AND
STOCKHOLDERS'
EQUITY
Interest bearing
liabilities:
Deposits:
Money market $826,877 $2,284 1.10% $638,833 $2,346 1.47%
Savings 103,308 133 0.51% 94,229 160 0.68%
Time 248,905 855 1.37% 248,388 1,376 2.22%
Checking with
interest 270,984 269 0.40% 150,049 233 0.62%
Securities
sold under
repo & other s/t
borrowings 72,275 73 0.40% 185,710 753 1.62%
Other
borrowings 126,793 1,579 4.98% 196,825 2,155 4.38%
------- ----- ------- -----
Total interest
bearing
liabilities 1,649,142 5,193 1.26% 1,514,034 7,023 1.86%
--------- ----- --------- -----
Non interest
bearing
liabilities:
Demand deposits 691,156 627,991
Other
liabilities 25,175 33,724
------ ------
Total non
interest
bearing
liabilities 716,331 661,715
------- -------
Stockholders'
equity(1) 195,808 215,164
------- -------
Total
liabilities
and
stockholders'
equity $2,561,281 $2,390,913
========== ==========
Net interest
earnings $29,591 $29,830
======= =======
Net yield on
interest
earning
assets 4.92% 5.34%
----------
(1) Excludes unrealized gains (losses) on securities available for sale.
(2) Includes loans classified as non-accrual.
(3) Effects of adjustments to a tax equivalent basis were increases of
$946 and $1,077 for the three month periods ended September 30, 2009
and September 30, 2008, respectively.
The following table sets forth the average balances of interest earning assets and interest bearing liabilities for the nine month periods ended September 30, 2009 and September 30, 2008, as well as total interest and corresponding yields and rates. The data contained in the table has been adjusted to a tax equivalent basis, based on the Company's federal statutory rate of 35 percent in 2009 and 2008.
(000's except percentages)
Nine Months Ended September 30,
-------------------------------
2009 2008
---- ----
Average Interest Yield/ Average Interest Yield/
Balance (3) Rate Balance (3) Rate
------- --- ---- ------- --- ----
ASSETS
Interest earning
assets:
Deposits in
Banks $16,705 $32 0.26% $5,127 $81 2.11%
Federal funds
sold 33,861 62 0.24% 31,376 820 3.48%
Securities:(1)
Taxable 428,116 14,133 4.40% 513,379 19,005 4.94%
Exempt from
federal
income taxes 190,456 9,146 6.40% 209,843 10,018 6.37%
Loans, net(2) 1,725,069 82,213 6.35% 1,430,477 78,024 7.27%
--------- ------ --------- ------
Total
interest
earning
assets 2,394,207 105,586 5.88% 2,190,202 107,948 6.57%
--------- ------- --------- -------
Non interest
earning
assets:
Cash & due
from banks 43,144 49,857
Other assets 117,423 102,435
------- -------
Total non
interest
earning
assets 160,567 152,292
------- -------
Total assets $2,554,774 $2,342,494
========== ==========
LIABILITIES
AND
STOCKHOLDERS'
EQUITY
Interest bearing
liabilities:
Deposits:
Money market $761,283 $6,831 1.20% $645,501 $8,226 1.70%
Savings 99,508 361 0.48% 94,135 545 0.77%
Time 276,674 3,136 1.51% 253,365 5,190 2.73%
Checking with
interest 240,378 768 0.43% 153,131 905 0.79%
Securities
sold under
repo & other
s/t
borrowings 118,241 474 0.53% 135,165 1,691 1.67%
Other
borrowings 164,492 5,605 4.54% 203,321 6,696 4.39%
------- ----- ------- -----
Total interest
bearing
liabilities 1,660,576 17,175 1.38% 1,484,618 23,253 2.09%
--------- ------ --------- ------
Non interest
bearing
liabilities:
Demand
deposits 664,914 615,217
Other
liabilities 28,997 31,383
Total non
interest
bearing
liabilities 693,911 646,600
------- -------
Stockholders'
equity(1) 200,287 211,276
------- -------
Total
liabilities
and
stockholders'
equity $2,554,774 $2,342,494
========== ==========
Net interest
earnings $88,411 $84,695
======= =======
Net yield on
interest
earning
assets 4.92% 5.16%
----------
(1) Excludes unrealized gains (losses) on securities available for sale.
(2) Includes loans classified as non-accrual.
(3) Effects of adjustments to a tax equivalent basis were increases of
$3,201 and $3,506 for the nine month periods ended September 30, 2009
and September 30, 2008, respectively.
HUDSON VALLEY HOLDING CORP.
Financial Highlights
Third Quarter 2009
(Dollars in thousands, except per share amounts)
9 mos end 9 mos end 3 mos end 3 mos end
Sep 30 Sep 30 Sep 30 Sep 30
2009 2008 2009 2008
---- ---- ---- ----
Earnings:
Net Interest Income $85,210 $81,189 $28,646 $28,753
Non Interest Income $7,828 $13,900 $3,341 $4,454
Non Interest Expense $57,019 $52,858 $18,931 $18,188
Net Income $13,800 $25,392 $6,898 $9,049
Net Interest Margin 4.75% 4.94% 4.77% 5.15%
Net Interest Margin
(FTE) 4.92% 5.16% 4.92% 5.34%
Efficiency Ratio 56.8% 52.8% 56.5% 51.5%
Diluted Earnings Per
Share $1.27 $2.25 $0.63 $0.80
Dividends Per Share $1.17 $1.38 $0.30 $0.46
Return on Average
Equity 9.2% 16.1% 14.0% 17.3%
Return on Average
Assets 0.7% 1.4% 1.1% 1.5%
Average Balances:
Average Assets $2,554,774 $2,342,494 $2,561,281 $2,390,913
Average Net Loans $1,725,069 $1,430,477 $1,739,165 $1,542,239
Average Investments $618,572 $723,222 $549,173 $675,290
Average Interest
Earning Assets $2,394,900 $2,188,366 $2,407,514 $2,225,767
Average Deposits $2,042,757 $1,761,349 $2,141,230 $1,759,490
Average Borrowings $282,733 $338,486 $199,068 $382,535
Average Interest
Bearing Liabilities $1,660,576 $1,484,618 $1,649,142 $1,514,034
Average Stockholders'
Equity $200,807 $210,096 $197,780 $209,798
Asset Quality - During
Period:
Provision for loan
losses $17,224 $3,485 $2,732 $1,040
Net Chargeoffs $4,916 $3,600 $2,064 $170
Annualized Net
Chargeoffs / Avg Net
Loans 0.38% 0.34% 0.47% 0.04%
HUDSON VALLEY HOLDING CORP.
Selected Financial Data
Third Quarter 2009
(Dollars in thousands)
Selected
Balance Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
Sheet Data 2009 2009 2009 2008 2008
----------- ---- ---- ---- ---- ----
Period End
Balances:
Total Assets $2,578,790 $2,562,048 $2,546,200 $2,540,890 $2,417,075
Total
Investments $548,123 $520,102 $629,153 $671,355 $636,323
Net Loans $1,750,917 $1,746,190 $1,715,856 $1,677,611 $1,596,350
Total
Deposits $2,169,811 $2,135,247 $2,059,615 $1,839,326 $1,777,445
Total
Stockholders'
Equity $200,718 $194,751 $199,374 $207,501 $206,963
Tangible
Stockholders'
Equity $176,304 $170,131 $174,549 $182,462 $186,975
Common Shares
Outstanding 10,556,554 10,571,056 10,600,251 10,871,609 10,935,029
Book Value
Per Share $19.01 $18.42 $18.81 $19.09 $18.93
Tangible Book
Value Per
Share $16.70 $16.09 $16.47 $16.78 $17.10
Tier 1 Leverage
Ratio 6.9% 6.8% 6.9% 7.5% 8.3%
Tier 1 Risk
Based Capital
Ratio 9.2% 9.0% 9.3% 10.1% 11.3%
Total Risk
Based Capital
Ratio 10.5% 10.2% 10.6% 11.3% 12.2%
Loan
Categories:
Commercial
Real Estate $745,406 $731,927 $676,263 $642,923 $560,397
Construction 261,827 274,039 266,983 254,837 232,816
Residential 454,326 453,182 434,516 409,431 394,107
Commercial
and
Industrial 282,513 279,400 328,462 358,076 391,861
Individuals 26,824 25,887 18,775 21,536 21,617
Lease
Financing 19,800 20,660 19,963 18,461 17,387
---------- ------ ------ ------ ------ ------
Total Loans $1,790,696 $1,785,095 $1,744,962 $1,705,264 $1,618,185
=========== ========== ========== ========== ========== ==========
Asset Quality
- Period End:
Allowance for
Loan Losses $34,845 $34,177 $24,199 $22,537 $17,252
Nonaccrual
Loans $39,872 $41,308 $27,859 $11,284 $14,117
Loans 90 Days
or More Past
Due Accruing $20,878 $11,039 $5,885 $7,019 $776
Other Real
Estate Owned $5,063 $7,188 $5,455 $5,467 $1,900
Allowance /
Total Loans 1.95% 1.91% 1.39% 1.32% 1.07%
Nonaccrual /
Total Loans 2.23% 2.31% 1.60% 0.66% 0.87%
Nonaccrual +
90 Day Past
Due / Total
Loans 3.39% 2.93% 1.93% 1.07% 0.92%
Nonaccrual +
OREO / Total
Assets 1.74% 1.89% 1.31% 0.66% 0.66%
Selected 3 mos 3 mos 3 mos 3 mos 3 mos
Income end end end end end
Statement Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
Data 2009 2009 2009 2008 2008
---------- ---- ---- ---- ---- ----
Interest
Income $33,839 $33,910 $34,636 $35,670 $35,776
Interest
Expense 5,193 5,731 6,251 6,830 7,023
-------- ----- ----- ----- ----- -----
Net Interest
Income 28,646 28,179 28,385 28,840 28,753
Provision for
Loan Losses 2,732 11,527 2,965 7,540 1,040
Non Interest
Income 3,341 1,837 2,650 4,704 4,454
Non Interest
Expense 18,931 19,639 18,449 18,227 18,188
------------ ------ ------ ------ ------ ------
Income Before
Income Taxes 10,324 (1,150) 9,621 7,777 13,979
Income Taxes 3,426 (1,460) 3,029 2,292 4,930
------------ ----- ------ ----- ----- -----
Net Income $6,898 $310 $6,592 $5,485 $9,049
========== ====== ==== ====== ====== ======
SOURCE Hudson Valley Holding Corp.
For further information: James J. Landy, President & CEO, +1-914-771-3230, or Stephen R. Brown, Sr. EVP, CFO & Treasurer, +1-914-771-3212, both of Hudson Valley Holding Corp.
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