YONKERS, N.Y., July 28 /PRNewswire-FirstCall/ -- Hudson Valley
Holding Corp. (Nasdaq: HUVL), parent of Hudson Valley Bank, has announced a net loss of
$11.0 million or $(0.68) per diluted share for the second quarter
of 2010, compared to earnings of $0.3
million or $0.03 per diluted
share for the same period in 2009, and compared to earnings of
$4.9 million or $0.30 per diluted share for the first quarter of
2010. For the six month period ended June
30, 2010, the net loss was $6.1
million or $(0.38) per diluted
share compared to earnings of $6.9
million or $0.58 per diluted
share for the same period in 2009.
The second quarter 2010 results reflect a significant addition
to the provision for loan losses resulting from a decision by the
Company to implement a more aggressive workout strategy for the
resolution of problem assets in light of a sluggish economic
recovery, continued weakness in local real estate activity and
market values and growing difficulty in resolving problem loans in
a timely fashion through traditional foreclosure proceedings due to
increased bankruptcy filings and overcrowded court systems.
James J. Landy, President and
Chief Executive Officer said, "Our core business continues to
produce positive financial results. The second quarter and
year-to-date disappointing financial results are attributable to
asset quality challenges and, in particular, our determination to
resolve more expeditiously our problem loans. We have analyzed our
identified problem loans as well as other loans we believe have the
potential to become problems in the near future against our new
workout strategy. A specific approach to resolve each loan was
developed and we provided through our reserves what we believe will
be the loss incurred in light of our new strategy. We believe
that our new strategy and the reserves we have established will
provide for the effective resolution of our problem loans."
Mr. Landy added, "We are encouraged by our robust core deposit
growth in 2010. Increasing low cost core deposits remains the
cornerstone of our business plan. Our cost of funds continues
to decline and remains one of the lowest in our industry. Our core
deposits provide a solid foundation from which we can grow.
Loan demand has softened significantly this year. As a
result, our short-term funds have increased causing our margins to
decline. We expect loan growth will remain soft for the near term.
We believe this situation is temporary and we anticipate loan
growth will rebound as the economy gains strength. We do,
however, see a slow economic recovery ahead."
The Company recorded a net loss for the three month period ended
June 30, 2010 of $11.0 million or $(0.68) per diluted share, a decrease of
$11.3 million compared to net income
of $0.3 million or $0.03 per diluted share for the same period in
the prior year. The net loss for the six month period ended
June 30, 2010 was $6.1 million or $(0.38) per diluted share, a decrease of
$13.0 million compared to earnings of
$6.9 million or $0.58 per diluted share for the same period in
the prior year. Per share amounts for the 2009 periods have been
adjusted to reflect the effects of the 10% stock dividend issued in
December 2009.
The net loss for the three and six month periods ended
June 30, 2010 resulted primarily from
a $28.5 million provision for loan
losses and a $1.4 million other real
estate owned valuation provision recorded in the second quarter of
2010. This provision is reflective of increases in nonperforming
assets and, in particular, the Company's decision to follow a more
aggressive strategy for problem asset resolution. The severity of
the decline in real estate values has provided new market
opportunities for the disposition of distressed assets as investors
search for yield in the current low interest rate environment and
our more aggressive policy may be able to take advantage of those
opportunities. As part of the revised resolution strategy, the
Company has reevaluated each problem loan and has made a
determination of net realizable value based on management's
estimation of the best possible outcome considering the individual
characteristics of each asset against the likelihood of resolution
with the current borrower, expectations for resolution through the
court system, or other available market opportunities.
Total deposits increased $238.5
million during the six month period ended June 30, 2010 as the Company continued to
experience significant growth in new customers both in existing
branches and new branches added during the last two years. Proceeds
from deposit growth were used to reduce maturing term borrowings or
were retained in liquid investments, principally interest earning
bank deposits.
Total loans decreased $72.1
million during the six month period ended June 30, 2010. This decline resulted from a
number of factors including decreased loan demand, charge-offs and
pay downs of existing loans. The Company recognized $25.6 million of net charge-offs during the six
month period. The Company has continued to experience a slowdown in
payments of certain loans, such as construction loans, whose
repayment is often dependent on sales of completed properties, as
well as additional increases in delinquent and nonperforming loans
in other sectors of the loan portfolio, all of which have been
adversely impacted by the economic downturn and decline in the real
estate market. The Company, however, continues to provide lending
availability to both new and existing customers.
Nonperforming assets, which include nonaccrual loans, accruing
loans delinquent over 90 days and other real estate owned,
increased to $75.6 million at
June 30, 2010, compared to
$66.7 million at December 31, 2009, as overall asset quality
continued to be adversely affected by the current state of the
economy and the real estate market. Although there is growing
evidence that the current economic downturn may have begun to
slowly turn around, increases in delinquent and nonperforming
loans, slowdowns in repayments and declines in the loan-to-value
ratios on existing loans continued during the first half of 2010.
Despite recent improvement in most economic indicators, the
Company's loan portfolio continued to be adversely impacted by the
effects of severe declines in the demand for and values of
virtually all commercial and residential real estate properties.
These declines, together with the limited availability of
residential mortgage financing, resulted in continued downward
pressure on the overall asset quality of the Company's loan
portfolio during the first half of 2010. In addition, recent
significant increases in filings of bankruptcy and foreclosure
proceedings have overloaded the court systems and have resulted in
what the Company believes to be unacceptable delays in attempts to
obtain title to real estate and other collateral through
conventional foreclosure. As a result of these factors, in the
second quarter of 2010, the Company instituted a revised and more
aggressive strategy for resolving problem assets discussed above.
During 2009 and the first half of 2010, the Company was able to
repay maturing long-term borrowings, all of its brokered
certificates of deposit and non-customer related short-term
borrowings with liquidity provided primarily by core deposit growth
and planned utilization of run-off from our investment securities.
Additional liquidity from deposit growth was retained in the
Company's short-term liquidity portfolios, available to fund future
loan growth. With interest rates remaining at historical low
levels, this increase in liquidity contributed to margin
compression. The net interest margin declined from 4.40 percent in
the first quarter of 2010 to 4.15 percent in the second quarter of
2010.
As a result of the aforementioned activity in the Company's core
businesses of loans and deposits and other asset/liability
management activities, tax equivalent basis net interest income
declined by $0.7 million or 2.4
percent to $28.6 million for the
three month period ended June 30,
2010, compared to $29.3
million for the same period in the prior year. Tax
equivalent basis net interest income declined by $1.1 million or 1.9 percent to $57.7 million for the six month period ended
June 30, 2010, compared to
$58.8 million for the same period in
the prior year. The effect of the adjustment to a tax equivalent
basis was $0.9 million and
$1.8 million, respectively, for the
three and six month period ended June 30,
2010, compared to $1.1 million
and $2.3 million, respectively, for
the same periods in the prior year.
The Company's non interest income was $2.7 million and $5.5
million, respectively, for the three and six month periods
ended June 30, 2010. This represented
increases of $0.9 million or 50.0
percent and $1.0 million or 22.2
percent, respectively, compared to $1.8
million and $4.5 million,
respectively, for the same periods in the prior year. These
increases were primarily as a result of an increase in investment
advisory fees. Fee income from this source increased primarily as a
result of the effects of recent significant improvement in both
domestic and international equity markets. Assets under management
were approximately $1.2 billion at
June 30, 2010 and $1.0 billion at June 30,
2009. The overall increases in non interest income also
included growth in deposit service charges, Non interest income
also included recognized pre-tax impairment charges on securities
available for sale of $0.5 million
and $2.3 million, respectively, for
the three and six month periods ended June
30, 2010 and $2.1 million and
$3.6 million, respectively, for the
same periods in the prior year. The impairment charges were related
to the Company's investments in pooled trust preferred securities.
The Company has decided to hold its investments in pooled trust
preferred securities as it does not believe that the current market
value estimates for these investments are indicative of their
underlying value. The pooled trust preferred securities are
primarily backed by various U.S. financial institutions many of
which are experiencing severe financial difficulties as a result of
the current economic downturn. Continuation of these conditions may
result in additional impairment charges on these securities in the
future. Non interest income for the three and six month periods
ended June 30, 2010 also included a
$1.4 million valuation loss on other
real estate owned. Non interest income, excluding net realized
gains and losses on securities transactions, valuation losses on
other real estate owned and recognized impairment charges on
securities available for sale, was $4.6
million and $9.1 million,
respectively, for the three and six month periods ended
June 30, 2010. These amounts
represented increases of $0.7 million
or 17.9 percent and $1.1 million or
13.8 percent, respectively, compared to $3.9
million and $8.0 million,
respectively, for the same periods in the prior year.
Non interest expense was $18.1
million and $36.6 million,
respectively, for the three and six month periods ended
June 30, 2010. This represented
decreases of $1.5 million or 7.7
percent and $1.5 million or 3.9
percent, respectively, compared to $19.6
million and $38.1 million,
respectively, for the same periods in the prior year. Increases in
non interest expense resulting from the Company's continued
investment in its branch offices, technology and personnel to
accommodate growth, the expansion of services and products
available to new and existing customers and the upgrading of
certain internal processes were significantly offset by cost saving
measures implemented by the Company during 2009 and continued into
2010. Overall decreases in non interest expense for the three and
six month periods ended June 30,
2010, compared to the same periods in the prior year,
partially resulted from significantly lower FDIC deposit insurance
premiums. Additional premiums imposed by the FDIC in 2009 to
replenish shortfalls in the FDIC Insurance Fund have not as yet
been imposed to the same degree in 2010. However, additional
premium increases and special assessments may continue to be
imposed by the FDIC in the future.
During the fourth quarter of 2009, the OCC required Hudson Valley Bank (HVB) to maintain, by
December 31, 2009, a total risk-based
capital ratio of at least 12.0%, a Tier 1 risk-based capital ratio
of at least 10.0%, and a Tier 1 leverage ratio of at least 8.0%.
These capital levels are in excess of "well capitalized" levels
generally applicable to banks under current regulations. In the
second quarter of 2010, the Company contributed an additional
$15 million of capital to HVB. The
Company and HVB have continuously exceeded required regulatory
capital ratios since December 31,
2009.
As previously announced we will be holding a second
quarter earnings conference call Wednesday,
July 28, 2010 at 10:00 AM EDT
- Participant Pass code: 5380315:
Domestic (toll free): 1-866-843-0890 or
International (toll)
+1-412-317-9250.
A replay of the call will be available 1 hour from the
close of the conference through August 9, 2010 at 9:00 AM
EDT - Replay Pass code:
442496: US Toll Free:
1-877-344-7529; International Toll:
+1-412-317-0088. Participants will be required to
state their name and company upon entering call.
The Company webcast will be available live at 10:00 AM EDT, and archived after the
call, through our website at
www.hudsonvalleybank.com.
About Hudson Valley Holding Corp.
Hudson Valley Holding Corp. (HUVL), headquartered in
Yonkers, NY, is the parent company
of Hudson Valley Bank (HVB).
Hudson Valley Bank is a Westchester based bank with more than
$2.9 billion in assets, serving the
metropolitan area with 36 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. Hudson Valley Holding Corp.'s common stock is traded on
the NASDAQ Global Select Market under the ticker symbol "HUVL" and
is included in the Russell 3000® Index. Additional information on
Hudson Valley Bank can be obtained
on their web-site at
www.hudsonvalleybank.com.
**************************************************************************************
This press release may contain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are statements that are
not historical facts. These statements relate 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 involve known and unknown risks, uncertainties and other
factors that may cause our actual results, level of activity,
performance or achievements to be materially different from our
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, but are
not limited to:
- a continued or unexpected decline in the economy in the
New York Metropolitan
area;
- increases in loan losses or in the level of nonperforming
loans;
- unexpected increases in our allowance for loan
losses;
- our failure to maintain required regulatory capital
levels;
- further declines in value in our investment
portfolio;
- a continued or unexpected decline in real estate values
within our market areas;
- higher than expected FDIC insurance premiums;
- unexpected changes in interest rates;
- additional regulatory oversight which may require us to
change our business model;
- the imposition on us of liabilities under federal or state
environmental laws;
- those risk factors identified in our SEC filings, including
our Form 10-K for the year ended December
31, 2009.
Forward looking statements speak only as of the date such
statements are made. The Company undertakes no duty to
update any forward-looking statement to conform the statement to
actual results or changes in the Company's
expectations.
|
|
HUDSON VALLEY HOLDING CORP. AND
SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF
INCOME (UNAUDITED)
|
|
For the three months ended June
30, 2010 and 2009
|
|
Dollars in thousands, except per
share amounts
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Jun 30
|
|
|
2010
|
2009
|
|
Interest Income:
|
|
|
|
Loans, including fees
|
$27,127
|
$27,374
|
|
Securities:
|
|
|
|
Taxable
|
3,560
|
4,483
|
|
Exempt from Federal income
taxes
|
1,621
|
2,032
|
|
Federal funds sold
|
36
|
14
|
|
Deposits in banks
|
166
|
7
|
|
Total interest income
|
32,510
|
33,910
|
|
Interest Expense:
|
|
|
|
Deposits
|
3,319
|
3,719
|
|
Securities sold under repurchase
agreements and other short-term borrowings
|
71
|
87
|
|
Other borrowings
|
1,440
|
1,925
|
|
Total interest
expense
|
4,830
|
5,731
|
|
Net Interest
Income
|
27,680
|
28,179
|
|
Provision for loan
losses
|
28,548
|
11,527
|
|
Net interest income after
provision for loan losses
|
(868)
|
16,652
|
|
Non Interest
Income:
|
|
|
|
Service charges
|
1,612
|
1,392
|
|
Investment advisory
fees
|
2,289
|
1,755
|
|
Recognized impairment charge on
securities available for sale (includes $1,256 and
$8,450 of total
losses in 2010 and 2009, respectively, less $745 and $6,335 of
losses
on securities
available for sale, recognized in other comprehensive income in
2010 and
2009,
respectively)
|
(511)
|
(2,115)
|
|
Realized gains on securities
available for sale, net
|
7
|
52
|
|
Losses on other real estate
owned
|
(1,359)
|
-
|
|
Other income
|
646
|
753
|
|
Total non interest
income
|
2,684
|
1,837
|
|
Non Interest
Expense:
|
|
|
|
Salaries and employee
benefits
|
9,508
|
10,415
|
|
Occupancy
|
1,911
|
1,888
|
|
Professional services
|
1,549
|
1,001
|
|
Equipment
|
969
|
1,046
|
|
Business development
|
548
|
491
|
|
FDIC assessment
|
1,187
|
2,087
|
|
Other operating
expenses
|
2,466
|
2,711
|
|
Total non interest
expense
|
18,138
|
19,639
|
|
Income (Loss) Before Income
Taxes
|
(16,322)
|
(1,150)
|
|
Income Taxes
(Benefit)
|
(5,367)
|
(1,460)
|
|
Net Income (Loss)
|
($10,955)
|
$310
|
|
Basic Earnings Per Common Share
(1)
|
($0.68)
|
$0.03
|
|
Diluted Earnings Per Common
Share (1)
|
($0.68)
|
$0.03
|
|
|
|
|
|
(1) June 2009 per share amounts
have been restated to reflect the effects of the 10% stock dividend
issued in December 2009.
|
|
|
|
|
|
|
|
|
HUDSON VALLEY HOLDING CORP. AND
SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF
INCOME (UNAUDITED)
|
|
For the six months ended June
30, 2010 and 2009
|
|
Dollars in thousands, except per
share amounts
|
|
|
|
|
|
|
Six Months Ended
|
|
|
Jun 30
|
|
|
2010
|
2009
|
|
Interest Income:
|
|
|
|
Loans, including fees
|
$54,691
|
$54,391
|
|
Securities:
|
|
|
|
Taxable
|
7,247
|
9,930
|
|
Exempt from Federal income
taxes
|
3,331
|
4,189
|
|
Federal funds sold
|
78
|
24
|
|
Deposits in banks
|
259
|
12
|
|
Total interest income
|
65,606
|
68,546
|
|
Interest Expense:
|
|
|
|
Deposits
|
6,654
|
7,555
|
|
Securities sold under repurchase
agreements and other short-term borrowings
|
148
|
401
|
|
Other borrowings
|
2,938
|
4,026
|
|
Total interest
expense
|
9,740
|
11,982
|
|
Net Interest
Income
|
55,866
|
56,564
|
|
Provision for loan
losses
|
34,130
|
14,492
|
|
Net interest income after
provision for loan losses
|
21,736
|
42,072
|
|
Non Interest
Income:
|
|
|
|
Service charges
|
3,415
|
3,005
|
|
Investment advisory
fees
|
4,514
|
3,642
|
|
Recognized impairment charge on
securities available for sale (includes $3,013 and
$10,075 of total
losses in 2010 and 2009, respectively, less $730 and $6,523
of
losses on
securities available for sale, recognized in other comprehensive
income in
2010 and 2009,
respectively)
|
(2,283)
|
(3,552)
|
|
Realized gains on securities
available for sale, net
|
75
|
52
|
|
Losses on other real estate
owned
|
(1,424)
|
-
|
|
Other income
|
1,180
|
1,340
|
|
Total non interest
income
|
5,477
|
4,487
|
|
Non Interest
Expense:
|
|
|
|
Salaries and employee
benefits
|
19,380
|
20,218
|
|
Occupancy
|
4,096
|
4,005
|
|
Professional services
|
2,864
|
2,060
|
|
Equipment
|
1,935
|
2,040
|
|
Business development
|
1,110
|
1,040
|
|
FDIC assessment
|
2,275
|
3,639
|
|
Other operating
expenses
|
4,932
|
5,086
|
|
Total non interest
expense
|
36,592
|
38,088
|
|
Income (Loss) Before Income
Taxes
|
(9,379)
|
8,471
|
|
Income Taxes
(Benefit)
|
(3,279)
|
1,569
|
|
Net Income (Loss)
|
($6,100)
|
$6,902
|
|
Basic Earnings Per Common Share
(1)
|
($0.38)
|
$0.59
|
|
Diluted Earnings Per Common
Share (1)
|
($0.38)
|
$0.58
|
|
|
|
|
|
(1) June 2009 per share amounts
have been restated to reflect the effects of the 10% stock dividend
issued in December 2009.
|
|
|
|
|
|
|
|
|
HUDSON VALLEY HOLDING CORP. AND
SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
|
|
June 30, 2010 and December 31,
2009
|
|
Dollars in thousands, except per
share and share amounts
|
|
|
|
|
|
|
Jun 30
|
Dec 31
|
|
|
2010
|
2009
|
|
ASSETS
|
|
|
|
Cash and non interest earning
due from banks
|
$48,925
|
$39,321
|
|
Interest earning deposits in
banks
|
406,823
|
127,659
|
|
Federal funds sold
|
75,165
|
51,891
|
|
Securities available for sale,
at estimated fair value (amortized cost of $483,219 in
|
|
|
|
2010 and $500,340
in 2009)
|
486,623
|
500,635
|
|
Securities held to maturity, at
amortized cost (estimated fair value of $19,790 in
|
|
|
|
2010 and $22,728
in 2009)
|
18,573
|
21,650
|
|
Federal Home Loan Bank of New
York (FHLB) stock
|
7,686
|
8,470
|
|
Loans (net of allowance for loan
losses of $47,127 in 2010 and $38,645 in 2009)
|
1,693,083
|
1,772,645
|
|
Accrued interest and other
receivables
|
19,072
|
15,200
|
|
Premises and equipment,
net
|
28,956
|
30,383
|
|
Other real estate
owned
|
5,578
|
9,211
|
|
Deferred income tax,
net
|
24,419
|
20,957
|
|
Bank owned life
insurance
|
25,388
|
24,458
|
|
Goodwill
|
23,842
|
23,842
|
|
Other intangible
assets
|
2,865
|
3,276
|
|
Other assets
|
16,241
|
15,958
|
|
TOTAL ASSETS
|
$2,883,239
|
$2,665,556
|
|
|
|
|
|
LIABILITIES
|
|
|
|
Deposits:
|
|
|
|
Non interest bearing
|
$789,420
|
$686,856
|
|
Interest bearing
|
1,621,643
|
1,485,759
|
|
Total deposits
|
2,411,063
|
2,172,615
|
|
Securities sold under repurchase
agreements and other short-term borrowings
|
64,549
|
53,121
|
|
Other borrowings
|
102,768
|
123,782
|
|
Accrued interest and other
liabilities
|
22,357
|
22,360
|
|
TOTAL LIABILITIES
|
2,600,737
|
2,371,878
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
Common stock, $0.20 par value;
authorized 25,000,000 shares: outstanding
|
|
|
|
16,029,164 and
16,016,738 shares in 2010 and 2009, respectively
|
3,465
|
3,463
|
|
Additional paid-in
capital
|
346,567
|
346,297
|
|
Retained earnings
(deficit)
|
(11,179)
|
2,294
|
|
Accumulated other comprehensive
income (loss)
|
1,213
|
(812)
|
|
Treasury stock, at cost;
1,299,414 shares in 2010 and 2009
|
(57,564)
|
(57,564)
|
|
Total stockholders'
equity
|
282,502
|
293,678
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$2,883,239
|
$2,665,556
|
|
|
|
|
|
|
|
|
HUDSON VALLEY HOLDING CORP. AND
SUBSIDIARIES
|
|
Average Balances and Interest
Rates
|
|
For the three months ended June
30, 2010 and 2009
|
|
|
|
|
|
|
|
|
|
|
The
following table sets forth the average balances of interest earning
assets and interest bearing liabilities for the periods
indicated,
as well as total interest and
corresponding yields and rates.
|
|
|
Three Months Ended June
30,
|
|
|
|
2010
|
|
|
|
2009
|
|
|
(Unaudited)
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
|
Balance
|
Interest (3)
|
Rate
|
|
Balance
|
Interest (3)
|
Rate
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Interest earning
assets:
|
|
|
|
|
|
|
|
|
Deposits in Banks
|
$316,380
|
$166
|
0.21%
|
|
$1,289
|
$7
|
2.17%
|
|
Federal funds sold
|
62,114
|
36
|
0.23%
|
|
19,703
|
14
|
0.28%
|
|
Securities: (1)
|
|
|
|
|
|
|
|
|
Taxable
|
386,195
|
3,560
|
3.69%
|
|
432,019
|
4,483
|
4.15%
|
|
Exempt from federal
income taxes
|
165,845
|
2,494
|
6.02%
|
|
196,954
|
3,127
|
6.35%
|
|
Loans, net (2)
|
1,731,967
|
27,127
|
6.27%
|
|
1,739,010
|
27,374
|
6.30%
|
|
Total interest earning
assets
|
2,662,501
|
33,383
|
5.02%
|
|
2,388,975
|
35,005
|
5.86%
|
|
|
|
|
|
|
|
|
|
|
Non interest earning
assets:
|
|
|
|
|
|
|
|
|
Cash & due from
banks
|
48,753
|
|
|
|
46,307
|
|
|
|
Other assets
|
137,565
|
|
|
|
121,109
|
|
|
|
Total non interest earning
assets
|
186,318
|
|
|
|
167,416
|
|
|
|
Total assets
|
$2,848,819
|
|
|
|
$2,556,391
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
Money
market
|
$961,839
|
$2,167
|
0.90%
|
|
$775,267
|
$2,327
|
1.20%
|
|
Savings
|
112,318
|
133
|
0.47%
|
|
99,338
|
113
|
0.46%
|
|
Time
|
209,038
|
665
|
1.27%
|
|
268,712
|
975
|
1.45%
|
|
Checking with
interest
|
361,091
|
354
|
0.39%
|
|
267,069
|
304
|
0.46%
|
|
Securities sold under repo &
other st borrowings
|
60,917
|
71
|
0.47%
|
|
88,675
|
87
|
0.39%
|
|
Other borrowings
|
118,465
|
1,440
|
4.86%
|
|
170,644
|
1,925
|
4.51%
|
|
Total interest bearing
liabilities
|
1,823,668
|
4,830
|
1.06%
|
|
1,669,705
|
5,731
|
1.37%
|
|
Non interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
Demand deposits
|
716,312
|
|
|
|
652,008
|
|
|
|
Other liabilities
|
16,080
|
|
|
|
32,718
|
|
|
|
Total non interest bearing
liabilities
|
732,392
|
|
|
|
684,726
|
|
|
|
Stockholders' equity
(1)
|
292,759
|
|
|
|
201,960
|
|
|
|
Total liabilities and
stockholders' equity
|
$2,848,819
|
|
|
|
$2,556,391
|
|
|
|
Net interest earnings
|
|
$28,553
|
|
|
|
$29,274
|
|
|
Net yield on interest earning
assets
|
|
|
4.29%
|
|
|
|
4.90%
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes unrealized gains
(losses) on securities available for sale. Management believes that
this presentation more closely reflects
actual performance, as it is
more consistent with the Company's stated asset/liability
management strategies, which have not resulted in
significant realization of
temporary market gains or losses on securities available for sale
which were primarily related to changes in
interest rates. Effects of these
adjustments are presented in the table below.
|
|
(2) Includes loans
classified as non-accrual.
|
|
(3) 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. Management believes
that this presentation provides comparability of net interest
income and net interest margin arising from
both taxable and tax-exempt
sources and is consistent with industry practice and SEC rules.
Effects of these adjustments are presented in
the table below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HUDSON VALLEY HOLDING CORP. AND
SUBSIDIARIES
|
|
Average Balances and Interest
Rates
|
|
For the six months ended June
30, 2010 and 2009
|
|
|
|
|
|
|
|
|
|
|
The
following table sets forth the average balances of interest earning
assets and interest bearing liabilities for the periods indicated,
as
well as total interest and
corresponding yields and rates.
|
|
|
Six Months Ended June
30,
|
|
|
|
2010
|
|
|
|
2009
|
|
|
(Unaudited)
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
|
Balance
|
Interest (3)
|
Rate
|
|
Balance
|
Interest (3)
|
Rate
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Interest earning
assets:
|
|
|
|
|
|
|
|
|
Deposits in Banks
|
$249,140
|
$259
|
0.21%
|
|
$4,573
|
$12
|
0.52%
|
|
Federal funds sold
|
75,036
|
78
|
0.21%
|
|
12,694
|
24
|
0.38%
|
|
Securities: (1)
|
|
|
|
|
|
|
|
|
Taxable
|
374,450
|
7,247
|
3.87%
|
|
453,161
|
9,930
|
4.38%
|
|
Exempt from federal
income taxes
|
167,881
|
5,125
|
6.11%
|
|
200,687
|
6,445
|
6.42%
|
|
Loans, net (2)
|
1,745,062
|
54,691
|
6.27%
|
|
1,717,905
|
54,391
|
6.33%
|
|
Total interest earning
assets
|
2,611,569
|
67,400
|
5.16%
|
|
2,389,020
|
70,802
|
5.93%
|
|
|
|
|
|
|
|
|
|
|
Non interest earning
assets:
|
|
|
|
|
|
|
|
|
Cash & due from
banks
|
45,401
|
|
|
|
43,891
|
|
|
|
Other assets
|
139,473
|
|
|
|
118,556
|
|
|
|
Total non interest earning
assets
|
184,874
|
|
|
|
162,447
|
|
|
|
Total assets
|
$2,796,443
|
|
|
|
$2,551,467
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
Money
market
|
$925,967
|
$4,347
|
0.94%
|
|
$727,942
|
$4,547
|
1.25%
|
|
Savings
|
112,547
|
261
|
0.46%
|
|
97,577
|
228
|
0.47%
|
|
Time
|
208,088
|
1,339
|
1.29%
|
|
290,788
|
2,281
|
1.57%
|
|
Checking with
interest
|
345,044
|
707
|
0.41%
|
|
224,822
|
499
|
0.44%
|
|
Securities sold under repo &
other st borrowings
|
63,480
|
148
|
0.47%
|
|
141,604
|
401
|
0.57%
|
|
Other borrowings
|
121,106
|
2,938
|
4.85%
|
|
183,655
|
4,026
|
4.38%
|
|
Total interest bearing
liabilities
|
1,776,232
|
9,740
|
1.10%
|
|
1,666,388
|
11,982
|
1.44%
|
|
Non interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
Demand deposits
|
705,159
|
|
|
|
651,575
|
|
|
|
Other liabilities
|
20,610
|
|
|
|
30,941
|
|
|
|
Total non interest bearing
liabilities
|
725,769
|
|
|
|
682,516
|
|
|
|
Stockholders' equity
(1)
|
294,442
|
|
|
|
202,563
|
|
|
|
Total liabilities and
stockholders' equity
|
$2,796,443
|
|
|
|
$2,551,467
|
|
|
|
Net interest earnings
|
|
$57,660
|
|
|
|
$58,820
|
|
|
Net yield on interest earning
assets
|
|
|
4.42%
|
|
|
|
4.92%
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes unrealized gains
(losses) on securities available for sale. Management believes that
this presentation more closely reflects
actual performance, as it is
more consistent with the Company's stated asset/liability
management strategies, which have not resulted in
significant realization of
temporary market gains or losses on securities available for sale
which were primarily related to changes in interest
rates. Effects of these
adjustments are presented in the table below.
|
|
(2) Includes loans
classified as non-accrual.
|
|
(3) 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.
Management believes that this
presentation provides comparability of net interest income and net
interest margin arising from both taxable
and tax-exempt sources and is
consistent with industry practice and SEC rules. Effects of these
adjustments are presented in the table below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HUDSON VALLEY HOLDING CORP. AND
SUBSIDIARIES
|
|
Average Balances and Interest
Rates
|
|
Non-GAAP
disclosures
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months Ended
|
|
|
Jun 30
|
Jun 30
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
|
|
|
|
|
Total interest earning
assets:
|
|
|
|
|
|
As reported
|
$2,667,880
|
$2,390,414
|
$2,615,872
|
$2,388,491
|
|
Unrealized gain (loss) on
securities
|
|
|
|
|
|
available-for-sale
(1)
|
5,379
|
1,439
|
4,303
|
(529)
|
|
|
|
|
|
|
|
Adjusted total interest earning
assets
|
$2,662,501
|
$2,388,975
|
$2,611,569
|
$2,389,020
|
|
|
|
|
|
|
|
Net interest
earnings:
|
|
|
|
|
|
As reported
|
$27,680
|
$28,180
|
$55,866
|
$56,564
|
|
Adjustment to tax
equivalency basis (2)
|
873
|
1,094
|
1,794
|
2,256
|
|
|
|
|
|
|
|
Adjusted net interest
earnings
|
$28,553
|
$29,274
|
$57,660
|
$58,820
|
|
|
|
|
|
|
|
Net yield on interest earning
assets:
|
|
|
|
|
|
As reported
|
4.15%
|
4.72%
|
4.27%
|
4.74%
|
|
Effects of (1) and (2)
above
|
0.14%
|
0.19%
|
0.14%
|
0.19%
|
|
|
|
|
|
|
|
Adjusted net interest
earnings
|
4.29%
|
4.90%
|
4.42%
|
4.92%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HUDSON VALLEY HOLDING CORP. AND
SUBSIDIARIES
|
|
Financial
Highlights
|
|
Second Quarter
2010
|
|
(Dollars in thousands, except
per share amounts)
|
|
|
|
|
|
|
|
|
3 mos end
|
3 mos end
|
6 mos end
|
6 mos end
|
|
|
Jun 30
|
Jun 30
|
Jun 30
|
Jun 30
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
Net Interest Income
|
$27,680
|
$28,179
|
$55,866
|
$56,564
|
|
Non Interest Income
|
$2,684
|
$1,837
|
$5,477
|
$4,487
|
|
Non Interest Expense
|
$18,138
|
$19,639
|
$36,592
|
$38,088
|
|
Net Income (Loss)
|
($10,955)
|
$310
|
($6,100)
|
$6,902
|
|
Net Interest Margin
|
4.15%
|
4.72%
|
4.27%
|
4.74%
|
|
Net Interest Margin
(FTE)
|
4.29%
|
4.90%
|
4.42%
|
4.92%
|
|
|
|
|
|
|
|
Diluted Earnings (Loss) Per
Share (1)
|
($0.68)
|
$0.03
|
($0.38)
|
$0.58
|
|
Dividends Per Share
(1)
|
$0.23
|
$0.36
|
$0.46
|
$0.79
|
|
Return on Average
Equity
|
-14.82%
|
0.61%
|
-4.11%
|
6.82%
|
|
Return on Average
Assets
|
-1.54%
|
0.05%
|
-0.44%
|
0.54%
|
|
|
|
|
|
|
|
Average Balances:
|
|
|
|
|
|
Average Assets
|
$2,854,198
|
$2,557,830
|
$2,800,746
|
$2,550,938
|
|
Average Net Loans
|
$1,731,967
|
$1,739,010
|
$1,745,062
|
$1,717,905
|
|
Average Investments
|
$552,040
|
$628,973
|
$542,331
|
$653,848
|
|
Average Interest Earning
Assets
|
$2,667,880
|
$2,390,414
|
$2,615,872
|
$2,388,491
|
|
Average Deposits
|
$2,360,598
|
$2,062,394
|
$2,296,805
|
$1,992,704
|
|
Average Borrowings
|
$179,382
|
$259,319
|
$184,586
|
$325,259
|
|
Average Interest Bearing
Liabilities
|
$1,823,668
|
$1,669,705
|
$1,776,232
|
$1,666,388
|
|
Average Stockholders'
Equity
|
$295,695
|
$202,953
|
$296,812
|
$202,345
|
|
|
|
|
|
|
|
Asset Quality - During
Period:
|
|
|
|
|
|
Provision for loan
losses
|
$28,548
|
$11,527
|
$34,130
|
$14,492
|
|
Net Chargeoffs
|
$20,784
|
$1,549
|
$25,647
|
$2,852
|
|
Annualized Net Chargeoffs/Avg
Net Loans
|
4.80%
|
0.36%
|
2.94%
|
0.33%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 2009 per share amounts have
been restated to reflect the effects of the 10% stock dividend
issued in December 2009.
|
|
|
|
|
|
|
|
|
|
|
HUDSON VALLEY HOLDING CORP. AND
SUBSIDIARIES
|
|
Selected Balance Sheet
Data
|
|
Second Quarter
2010
|
|
(Dollars in thousands except per
share amounts)
|
|
|
|
|
|
|
|
|
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
|
|
2010
|
2010
|
2009
|
2009
|
2009
|
|
|
|
|
|
|
|
|
Period End
Balances:
|
|
|
|
|
|
|
Total Assets
|
$2,883,239
|
$2,804,199
|
$2,665,556
|
$2,578,790
|
$2,562,048
|
|
Total Investments
|
$505,196
|
$534,846
|
$522,285
|
$548,123
|
$520,102
|
|
Net Loans
|
$1,693,083
|
$1,755,981
|
$1,772,645
|
$1,750,917
|
$1,746,190
|
|
Goodwill and Other Intangible
Assets
|
$26,707
|
$26,912
|
$27,118
|
$24,414
|
$24,620
|
|
Total Deposits
|
$2,411,063
|
$2,284,938
|
$2,172,615
|
$2,169,811
|
$2,135,247
|
|
Total Stockholders'
Equity
|
$282,502
|
$297,002
|
$293,678
|
$200,718
|
$194,751
|
|
Common Shares Outstanding
(1)
|
16,029,164
|
16,025,792
|
16,016,738
|
11,612,209
|
11,628,162
|
|
Book Value Per Share
(1)
|
$17.62
|
$18.53
|
$18.34
|
$17.29
|
$16.75
|
|
|
|
|
|
|
|
|
Tier 1 Leverage Ratio -
HVHC
|
9.0%
|
9.9%
|
10.2%
|
6.9%
|
6.8%
|
|
Tier 1 Risk Based Capital Ratio
- HVHC
|
14.0%
|
14.2%
|
13.9%
|
9.2%
|
9.0%
|
|
Total Risk Based Capital Ratio -
HVHC
|
15.2%
|
15.4%
|
15.2%
|
10.5%
|
10.2%
|
|
Tier 1 Leverage Ratio -
HVB
|
8.1%
|
8.3%
|
8.4%
|
6.9%
|
6.8%
|
|
Tier 1 Risk Based Capital Ratio
- HVB
|
12.6%
|
11.9%
|
11.4%
|
9.2%
|
9.0%
|
|
Total Risk Based Capital Ratio -
HVB
|
13.9%
|
13.1%
|
12.7%
|
10.4%
|
10.2%
|
|
|
|
|
|
|
|
|
Loan Categories:
|
|
|
|
|
|
|
Commercial Real
Estate
|
$784,012
|
$792,447
|
$783,597
|
$745,406
|
$731,927
|
|
Construction
|
203,124
|
247,679
|
255,660
|
261,827
|
274,039
|
|
Residential
|
454,529
|
445,107
|
454,532
|
454,326
|
453,182
|
|
Commercial and
Industrial
|
254,840
|
265,761
|
274,860
|
282,513
|
279,400
|
|
Individuals
|
29,992
|
29,361
|
26,970
|
26,824
|
25,887
|
|
Lease Financing
|
17,822
|
19,569
|
20,810
|
19,800
|
20,660
|
|
Total Loans
|
$1,744,319
|
$1,799,924
|
$1,816,429
|
$1,790,696
|
$1,785,095
|
|
|
|
|
|
|
|
|
Asset Quality - Period
End:
|
|
|
|
|
|
|
Allowance for Loan
Losses
|
$47,127
|
$39,363
|
$38,645
|
$34,845
|
$34,177
|
|
Loans 31-89 Days Past Due
Accruing
|
$6,380
|
$30,934
|
$32,022
|
$35,489
|
$40,228
|
|
Loans 90 Days or More Past Due
Accruing
|
$448
|
$8,504
|
$6,941
|
$20,878
|
$11,039
|
|
Nonaccrual Loans
|
$69,562
|
$69,686
|
$50,590
|
$39,872
|
$41,308
|
|
Other Real Estate
Owned
|
$5,578
|
$6,937
|
$9,211
|
$5,063
|
$7,188
|
|
Allowance / Total
Loans
|
2.70%
|
2.19%
|
2.13%
|
1.95%
|
1.91%
|
|
Nonaccrual / Total
Loans
|
3.99%
|
3.87%
|
2.79%
|
2.23%
|
2.31%
|
|
Nonaccrual + 90 Day Past Due /
Total Loans
|
4.01%
|
4.34%
|
3.17%
|
3.39%
|
2.93%
|
|
Nonaccrual + OREO / Total
Assets
|
2.61%
|
2.73%
|
2.24%
|
1.74%
|
1.89%
|
|
|
|
|
|
|
|
|
(1) Share and per share amounts
for September 2009 and June 2009 have been restated to reflect the
effects of the 10% stock dividend
issued in December
2009.
|
|
|
|
|
|
|
|
|
|
|
|
HUDSON VALLEY HOLDING CORP. AND
SUBSIDIARIES
|
|
Selected Income Statement
Data
|
|
Second Quarter
2010
|
|
(Dollars in thousands except per
share amounts)
|
|
|
|
|
|
|
|
|
|
3 mos end
|
3 mos end
|
3 mos end
|
3 mos end
|
3 mos end
|
|
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
|
|
2010
|
2010
|
2009
|
2009
|
2009
|
|
|
|
|
|
|
|
|
Interest Income
|
$32,510
|
$33,096
|
$34,194
|
$33,839
|
$33,910
|
|
Interest Expense
|
4,830
|
4,910
|
5,129
|
5,193
|
5,731
|
|
Net Interest Income
|
27,680
|
28,186
|
29,065
|
28,646
|
28,179
|
|
Provision for Loan
Losses
|
28,548
|
5,582
|
7,082
|
2,732
|
11,527
|
|
Non Interest Income
|
2,684
|
2,793
|
2,666
|
3,341
|
1,837
|
|
Non Interest Expense
|
18,138
|
18,454
|
17,122
|
18,931
|
19,639
|
|
Income (Loss) Before Income
Taxes
|
(16,322)
|
6,943
|
7,527
|
10,324
|
(1,150)
|
|
Income Taxes
(Benefit)
|
(5,367)
|
2,088
|
2,315
|
3,426
|
(1,460)
|
|
Net Income (Loss)
|
($10,955)
|
$4,855
|
$5,212
|
$6,898
|
$310
|
|
Diluted Earnings (Loss) per
share (1)
|
($0.68)
|
$0.30
|
$0.34
|
$0.58
|
$0.03
|
|
Net Interest Margin
|
4.15%
|
4.40%
|
4.67%
|
4.76%
|
4.72%
|
|
Average Cost of Deposits
(2)
|
0.56%
|
0.60%
|
0.64%
|
0.66%
|
0.72%
|
|
|
|
|
|
|
|
|
(1) Share and per share amounts
for September 2009 and June 2009 have been restated to reflect the
effects of the 10% stock dividend issued in December
2009.
|
|
(2) Includes non interest
bearing deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Hudson Valley Holding Corp.