Exhibit 99
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FOR IMMEDIATE RELEASE | CONTACT | |
Hudson Valley Holding Corp. | James J. Landy | |
21 Scarsdale Road | President & CEO | |
Yonkers, NY 10707 | (914) 771-3230 | |
Stephen R. Brown | ||
Sr. EVP, CFO & Treasurer | ||
(914) 771-3212 |
HUDSON VALLEY HOLDING CORP ANNOUNCES EARNINGS FOR THE
THIRD QUARTER OF 2009
THIRD QUARTER OF 2009
Yonkers, NY, October 19, 2009 ... 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.
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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 atwww.hudsonvalleybank.com andwww.nynb.com.
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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
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
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
Dollars in thousands, except share amounts
September 30, | December 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 | Yield/ | Average | Yield/ | |||||||||||||||||||||
Balance | Interest(3) | Rate | Balance | Interest(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 | Yield/ | Average | Yield/ | |||||||||||||||||||||
Balance | Interest(3) | Rate | Balance | Interest(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)
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 Financial Data
Third Quarter 2009
(Dollars in thousands)
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | ||||||||||||||||
Selected Balance 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 | % |
3 mos end | 3 mos end | 3 mos end | 3 mos end | 3 mos end | ||||||||||||||||
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | ||||||||||||||||
Selected Income Statement 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 | ||||||||||