Hudson Valley Holding Corp. Announces Financial Results For The First Quarter Of 2014 - KPLC 7 News, Lake Charles, Louisiana

Hudson Valley Holding Corp. Announces Financial Results For The First Quarter Of 2014

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SOURCE Hudson Valley Holding Corp.

-- Continues to benefit from loan growth, credit quality improvement, and low funding costs --

-- Launches new products addressing wider array of customer needs with equipment financing business and

- New ABL unit performing ahead of plan in its first full quarter of operation --

-- Net-interest margin improves --

-- Declares cash dividend of $0.06 per share --

YONKERS, N.Y., April 28, 2014 /PRNewswire/ -- Hudson Valley Holding Corp. (NYSE: HVB) reported first quarter 2014 earnings, benefitting from continued loan growth, credit quality improvement, and low funding costs.

The parent company of Hudson Valley Bank earned $1.6 million, or $0.08 per diluted share, in the first quarter of 2014, which includes a previously disclosed $1.9 million pre-tax charge ($1.1 million after tax) for prepaying all $16.4 million of the Company's outstanding Federal Home Loan Bank borrowings and a $0.2 million tax charge related to New York State Corporate Tax Reform enacted on March 31, 2014. Excluding the after-tax impact of these charges, net income was $2.9 million, or $0.14 per share, in the first quarter of 2014.

In the fourth quarter of 2013, the Company reported a loss of $8.5 million, or ($0.43) per share, reflecting a goodwill-impairment charge related to its investment management subsidiary and an other-than-temporary impairment charge on the Company's collateralized debt obligation securities portfolio. Excluding the after-tax impact of these charges, net income was $3.3 million, or $0.16 per share in the linked quarter. In the first quarter of 2013, the Company earned $3.7 million, or $0.18 per share.

"We continued to take significant steps designed to deploy liquidity and diversify our product offering and customer base," President and Chief Executive Officer Stephen R. Brown said. "Recent management changes have been made to ensure that our collective focus remains squarely on these efforts, and by the end of the first quarter our new equipment finance business was launched. Additionally, our asset based lending team has already closed transactions totaling $21.8 million in commitments since we brought the team on board in late 2013. Our relationships with current depositors and customers remain exceptionally strong, and replicating that success with new customers within our well-defined market niches will continue to be our emphasis in 2014."

Balance Sheet
Loans totaled $1.66 billion at March 31, 2014, increasing 1.7 percent during the first quarter and 17.2 percent from March 31, 2013.

Commercial and industrial loans of $284.0 million represented 17.1 percent of total loans at March 31, 2014, compared to 15.9 percent at the end of the linked quarter and 17.7 percent at the end of the year-ago quarter. 

Loans secured by 1-4 family residential mortgages of $314.7 million at March 31, 2014, represented 19.0 percent of total loans, compared to 19.6 percent at the end of the linked quarter and 13.3 percent at the end of the year-ago quarter. 

The Company maintained very high levels of core deposits, which represented 97 percent of total deposits at the end of the first quarter of 2014. Core deposits, which exclude time deposits greater than $100,000, totaled $2.5 billion at March 31, 2014, compared to $2.5 billion at December 31, 2013 and $2.4 billion at March 31, 2013.

Portfolio Credit Quality
Overall portfolio trends continue to reflect a gradually improving credit environment.

Nonperforming assets (NPAs), which include nonaccrual loans, accruing loans delinquent over 90 days and other real estate owned (OREO), were $21.0 million at March 31, 2014, compared to $23.5 million at December 31, 2013 and $32.1 million at March 31, 2013.  NPAs totaled 0.72 percent of total assets at March 31, 2014, compared to 0.78 percent at December 31, 2013 and 1.14 percent at March 31, 2013.

Net recoveries were $0.8 million for the first quarter of 2014, compared to net charge-offs of $0.5 million and $1.3 million in the linked and year-ago quarters, respectively. As a percentage of average loans, annualized charge-offs were 0.13 percent in the linked quarter and 0.36 percent in the year-ago quarter. The Company does not expect ongoing net recoveries in future quarters.

The Company's allowance for loan losses was $26.9 million at March 31, 2014 compared to $26.0 million at December 31, 2013 and $26.1 million at March 31, 2013. The allowance measured 1.62 percent, 1.59 percent and 1.84 percent of total loans at each of those dates, respectively.

Classified assets at March 31, 2014 represented 18.0 percent of Tier 1 capital plus the allowance for loan losses, compared to 20.7 percent at December 31, 2013 and 35.4 percent at March 31, 2013.

The Company's provision for loan losses in the first quarter of 2014 was $0.1 million, compared to $0.6 million in the linked quarter and $0.8 million in the year-ago quarter, reflecting changes in credit mix and net recoveries recorded during the first quarter of 2014.

Revenues and Margin
The Company's net interest margin was 3.14 percent in the first quarter of 2014, compared to 2.95 percent in the linked quarter and 3.18 percent in the year-ago quarter.

Net interest income was $21.7 million in the first quarter of 2014, compared to $20.6 million in the linked quarter and $21.2 million in the year-ago quarter. 

The yield on interest-earning assets averaged 3.30 percent in the first quarter of 2014, compared to 3.14 percent in the linked quarter and 3.40 percent in the year-ago quarter. Lower asset yields continued to be partially offset by the Company's historically low average cost of deposits of 0.17 percent in the first quarter of 2014, compared to 0.18 percent in linked quarter and 0.20 percent in the year-ago quarter.

Non interest income was $2.5 million for the first quarter of 2014, including a $1.9 million prepayment penalty on FHLB borrowings. Non interest income was $2.6 million for the fourth quarter of 2013, including a $1.2 million securities other-than-temporary impairment loss.  Non interest income for the first quarter of 2014 was positively affected by higher service charges and stable investment advisory fees. Non interest income was $4.5 million in the first quarter of 2013.

Non Interest Expense
Total non interest expense in the first three months of 2014 was $21.8 million. In the linked quarter, non-interest expense was $39.1 million, including an $18.7 goodwill impairment, and $19.6 million in the first quarter of 2013. Expense savings achieved in 2013 through the elimination of non-profitable operations, have been reinvested into new strategic initiatives designed to diversify our product offering and customer base.  These initiatives are already producing value as a result of the activity of the new hires in our ABL and equipment financing units. As such, salaries and employee benefits expense increased to $13.0 million in the first quarter of 2014, compared to $11.5 million and $11.3 million in the linked and year-ago quarters, respectively.

The following table details the Company's net income and diluted earnings per common share, and the effects of the charges during the first quarter of 2014 and the fourth quarter of 2013.

 




Three Months Ended


Three Months Ended



March 31, 2014


December 31, 2013



Dollars in
Thousands


Diluted
Earnings Per
Common Share


Dollars in
Thousands


Diluted
Earnings Per
Common Share

Net income before charges


$2,877


$0.14


$3,329


$0.16

FHLB borrowings prepayment penalty, net of tax


(1,090)


(0.05)





Tax charge related to NYS Corporate Tax Reform


(185)


(0.01)





Goodwill impairment, net of tax






(11,106)


(0.55)

Other-than-temporary-impairment loss, net of tax






(726)


(0.04)

Net income (loss), as reported


$1,602


$0.08


($8,503)


($0.43)

 

Quarterly Cash Dividend and Capital Management
The Company's board of directors declared a quarterly cash dividend of $0.06 per share, payable on May 16, 2014, to all common stock shareholders of record as of the close of business on May 9, 2014.

At March 31, 2014, the Company maintained a total risk-based capital ratio of 17.5 percent, a Tier 1 risk-based capital ratio of 16.2 percent, and a Tier 1 leverage ratio of 9.7 percent. Its Hudson Valley Bank subsidiary at March 31, 2014 maintained a total risk-based capital ratio of 17.2 percent, a Tier 1 risk-based capital ratio of 15.9 percent, and a Tier 1 leverage ratio of 9.5 percent. 

Non-GAAP Financial Disclosures and Reconciliation to GAAP
In addition to evaluating the Company's results of operations in accordance with U.S. generally accepted accounting principles ("GAAP"), management routinely supplements this evaluation with an analysis of certain non-GAAP financial measures, such as the tangible equity ratio and tangible book value per share. Management believes these non-GAAP financial measures provide information useful to investors in understanding Hudson Valley Holding Corp.'s underlying operating performance and trends, and facilitates comparisons with the performance of other banks.  Further, the tangible equity ratio and tangible book value per share are used by management to analyze the relative strength of Hudson Valley Holding Corp.'s capital position.  

In addition, Hudson Valley Holding Corp. in this press release discloses, net income exclusive of the prepayment penalty on FHLB borrowings and the tax charge related to New York State Corporate Tax Reform in the first quarter of 2014, and the goodwill impairment and other-than-temporary impairment charges in the fourth quarter of 2013, and non interest income exclusive of the FHLB prepayment penalty in the first quarter of 2014 and other-than-temporary impairment charges in the fourth quarter of 2013. The Company believes that these presentations of net income are important to investors because it provides a more appropriate comparison to the prior quarter and prior year results.

In light of diversity in presentation among financial institutions, the methodologies used by Hudson Valley Holding Corp. for determining the non-GAAP financial measures discussed above may differ from those used by other financial institutions.

Conference Call 

As previously announced, the Company will hold its quarterly conference call to review the Company's financial results on Tuesday, April 29, 2014 at 10:00 AM ET:

Domestic (toll free): 1-888-317-6016; International (toll): + 1-412-317-6016.

All participants should dial in at least ten minutes prior to the call and request the "Hudson Valley First Quarter Earnings Call."

A replay of the call will be available one hour from the close of the conference through May 12, 2014 at 9:00 AM ET:

Domestic Toll Free: 1-877-344-7529 - Conference # 10043862; International Toll: +1-412-317-0088 - Conference # 10043862.

Participants will be required to state their name and company upon entering call.

The Company webcast will be available live at 10:00 AM ET, and archived after the call through its website at www.hudsonvalleybank.com.

About Hudson Valley Holding Corp. Through its Hudson Valley Bank subsidiary, headquartered in Yonkers, N.Y., Hudson Valley Holding Corp (NYSE:HVB) serves small- and mid-sized businesses, professional services firms, not-for-profit organizations and their principals throughout metropolitan New York.  The Company focuses on building strategic relationships with its niche customers, providing a full range of banking, deposit, financing, trust and investment management services, in addition to specialized services, such as asset based lending and equipment financing, across varied industries nationwide. With $3.0 billion in assets, $2.6 billion in deposits and 28 branches, Hudson Valley is the largest bank headquartered in Westchester County. Its common stock is traded on the New York Stock Exchange and is a Russell 3000® Index component. More information is available at www.hudsonvalleybank.com.

Forward Looking Statements
Hudson Valley Holding Corp. ("Hudson Valley") has made in this press release various forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to earnings, credit quality and other financial and business matters for periods subsequent to March 31, 2014. These statements may be identified by such forward-looking terminology as "expect", "may", "will", "anticipate", "continue", "believe" or similar statements or variations of such terms.  Hudson Valley cautions that these forward-looking statements are subject to numerous assumptions, risks and uncertainties, and that statements relating to subsequent periods increasingly are subject to greater uncertainty because of the increased likelihood of changes in underlying factors and assumptions. Actual results could differ materially from forward-looking statements.

Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, in addition to those risk factors disclosed in the Hudson Valley's Annual Report on Form 10-K for the year ended December 31, 2013 include, but are not limited to:

  • the Office of the Comptroller of the Currency (the "OCC") and other bank regulators may require us to further modify or change our mix of assets, including our concentration in certain types of loans, or require us to take further remedial actions;
  • our inability to deploy our excess cash, reduce our expenses and improve our operating leverage and efficiency;
  • our ability to pay quarterly cash dividends to shareholders in light of our earnings, the current and future economic environment,  Federal Reserve Board guidance, our Bank's capital plan and other regulatory requirements applicable to Hudson Valley or Hudson Valley Bank;
  • the possibility that we may need to raise additional capital in the future and our ability to raise such capital on terms that are favorable to us;
  • further increases in our non-performing loans and allowance for loan losses;
  • ineffectiveness in managing our commercial real estate portfolio;
  • lower than expected  future performance of our investment portfolio;
  • inability to effectively integrate and manage the new businesses and lending teams;
  • a lack of opportunities for growth, plans for expansion (including opening new branches) and increased or unexpected competition in attracting and retaining customers;
  • continued poor economic conditions generally and in our market area in particular, which may adversely affect the ability of borrowers to repay their loans and the value of real property or other property held as collateral for such loans;
  • lower than expected demand for our products and services;
  • possible additional impairment of our goodwill and other intangible assets;
  • our inability to manage interest rate risk;
  • increased expense and burdens resulting from the regulatory environment in which we operate and our ability to comply with existing and future  regulatory requirements;
  • our inability to maintain regulatory capital above the minimum levels Hudson Valley Bank has set as its minimum capital levels, or such higher capital levels as may be required;
  • proposed legislative and regulatory action may adversely affect us and the financial services industry;
  • legislative and regulatory actions (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulations) may subject us to additional regulatory oversight which may result in increased compliance costs and/or require us to change our business model;
  • future increased Federal Deposit Insurance Corporation, or FDIC, special assessments or changes to regular assessments;
  • potential liabilities under federal and state environmental laws;
  • legislative and regulatory changes to laws governing New York State's taxation of HVB's REIT subsidiary.

We assume no obligation for updating any such forward-looking statements at any given time.

 

 


HUDSON VALLEY HOLDING CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the three months ended March 31, 2014 and 2013

(Dollars in thousands, except per share data)





Three Months Ended


March 31


2014

2013

Interest Income:



Loans, including fees

$19,538

$19,259

Securities:



Taxable

2,318

2,195

Exempt from Federal income taxes

630

768

Federal funds sold

8

11

Deposits in banks

341

448

Total interest income

22,835

22,681

Interest Expense:



Deposits

1,090

1,247

Securities sold under repurchase agreements and other short-term borrowings

6

9

Other borrowings

10

179

Total interest expense

1,106

1,435

Net Interest Income

21,729

21,246

Provision for loan losses

78

772

Net interest income after provision for loan losses

21,651

20,474

Non Interest Income (Loss):



Service charges

1,783

1,739

Investment advisory fees

1,927

1,933

Realized gains on securities available for sale, net

26

-

Gain on sales and revaluations of loans and other real estate owned, net

-

17

Prepayment penalty - FHLB Borrowings

(1,860)

-

Other income

603

828

Total non interest income (loss)

2,479

4,517

Non Interest Expense:



Salaries and employee benefits

13,039

11,282

Occupancy

2,019

2,109

Professional services

1,693

1,505

Equipment

998

1,056

Business development

671

452

FDIC assessment

606

944

Other operating expenses

2,764

2,263

Total non-interest expense

21,790

19,611

Income Before Income Taxes

2,340

5,380

Income Taxes

738

1,729

Net Income

$1,602

$3,651

Basic Earnings Per Common Share

$0.08

$0.18

Diluted Earnings Per Common Share

$0.08

$0.18




 

 

HUDSON VALLEY HOLDING CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

March 31, 2014 and December 31, 2013

(Dollars in thousands, except share and per share data)





March 31

December 31


2014

2013

ASSETS



Cash and non interest earning due from banks

$48,130

$37,711

Interest earning deposits in banks

552,729

661,643

Total cash and cash equivalents

600,859

699,354

Federal funds sold

18,866

27,134

Securities available for sale, at estimated fair value (amortized cost of $537,070 in



2014 and $550,785 in 2013)

532,341

542,198

Securities held to maturity, at amortized cost (estimated fair value of $6,236 in



2014 and $6,555 in 2013)

5,951

6,238

Federal Home Loan Bank of New York (FHLB) stock

2,740

3,478

Loans (net of allowance for loan losses of $26,904 in 2014 and $25,990 in 2013)

1,632,795

1,606,179

Accrued interest and other receivables

17,933

14,663

Premises and equipment, net

14,736

15,103

Deferred income tax, net

25,697

31,433

Bank owned life insurance

41,855

41,224

Goodwill

5,142

5,142

Other intangible assets

665

713

Other assets

6,621

6,340

TOTAL ASSETS

$2,906,201

$2,999,199




LIABILITIES



Deposits:



Non-interest bearing

$970,733

$1,069,631

Interest bearing

1,591,285

1,564,113

Total deposits

2,562,018

2,633,744

Securities sold under repurchase agreements and other short-term borrowings

31,183

34,379

Other borrowings

-

16,388

Accrued interest and other liabilities

25,447

30,379

TOTAL LIABILITIES

2,618,648

2,714,890




STOCKHOLDERS' EQUITY



Preferred Stock, $0.01 par value; authorized 15,000,000 shares; no shares



outstanding in 2014 and 2013, respectively

-

-

Common stock, $0.20 par value; authorized 25,000,000 shares: outstanding



20,032,431 and 19,935,559 shares in 2014 and 2013, respectively

4,266

4,247

Additional paid-in capital

351,448

351,108

Retained earnings (deficit)

(6,706)

(7,111)

Accumulated other comprehensive loss

(3,891)

(6,371)

Treasury stock, at cost; 1,299,414 shares in 2014 and 2013

(57,564)

(57,564)

TOTAL STOCKHOLDERS' EQUITY

287,553

284,309

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$2,906,201

$2,999,199




 

 


HUDSON VALLEY HOLDING CORP. AND SUBSIDIARIES

Average Balances and Interest Rates

For the three months ended March 31, 2014 and 2013

(Dollars in thousands)









       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 March 31,



2014




2013


(Unaudited)

Average


Yield/


Average


Yield/


Balance

Interest (3)

Rate


Balance

Interest (3)

Rate

ASSETS








Interest earning assets:








 Deposits in Banks

$585,180

$341

0.23%


$753,296

$448

0.24%

 Federal funds sold

20,386

8

0.16%


25,562

11

0.17%

 Securities: (1)








    Taxable

456,914

2,318

2.03%


385,790

2,195

2.28%

    Exempt from federal income taxes

91,162

969

4.25%


83,889

1,182

5.64%

 Loans, net (2)

1,615,848

19,538

4.84%


1,422,132

19,259

5.42%

Total interest earning assets

2,769,490

23,174

3.35%


2,670,669

23,095

3.46%









Non interest earning assets:








 Cash & due from banks

59,397




52,252



 Other assets

111,579




136,630



Total non-interest earning assets

170,976




188,882



Total assets

$2,940,466




$2,859,551



LIABILITIES AND STOCKHOLDERS' EQUITY








Interest bearing liabilities:








 Deposits:








    Money market

$895,318

$745

0.33%


$861,737

$841

0.39%

    Savings

124,311

43

0.14%


130,327

92

0.28%

    Time

115,035

133

0.46%


129,011

163

0.51%

    Checking with interest

456,403

169

0.15%


367,671

151

0.16%

 Securities sold under repo & other s/t borrowings

28,900

6

0.08%


29,945

9

0.12%

 Other borrowings

911

10

4.39%


16,422

179

4.36%

Total interest bearing liabilities

1,620,878

1,106

0.27%


1,535,113

1,435

0.37%

Non interest bearing liabilities:








 Demand deposits

998,911




1,004,275



 Other liabilities

30,830




29,266



Total non interest bearing liabilities

1,029,741




1,033,541



Stockholders' equity (1)

289,847




290,897



Total liabilities and stockholders' equity

$2,940,466




$2,859,551



Net interest earnings


$22,068




$21,660


Net yield on interest earning assets



3.19%




3.24%

-----------------------------------------------------








(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

Financial Highlights

First Quarter 2014 and 2013

(Dollars in thousands, except per share data)





3 months
ended

3 months
ended


Mar 31

Mar 31


2014

2013




Earnings:



Net Interest Income

$21,729

$21,246

Non Interest Income

$2,479

$4,517

Non Interest Expense

$21,790

$19,611

Net Income

$1,602

$3,651

Net Interest Margin

3.14%

3.18%

Net Interest Margin (FTE) (1)

3.19%

3.24%




Diluted Earnings Per Share

$0.08

$0.18

Dividends Per Share

$0.06

$0.06

Return on Average Equity

2.23%

5.02%

Return on Average Assets

0.22%

0.51%

Efficiency Ratio (2)

82.60%

74.97%




Average Balances:



Average Assets

$2,935,509

$2,859,443

Average Net Loans

$1,615,848

$1,422,132

Average Investments

$548,076

$469,679

Average Interest Earning Assets

$2,764,533

$2,670,561

Average Deposits

$2,589,978

$2,493,021

Average Borrowings

$29,811

$46,367

Average Interest Bearing Liabilities

$1,620,878

$1,535,113

Average Stockholders' Equity

$286,740

$290,950




Asset Quality - During Period:



Provision for Loan Losses

$78

$772

Net (Recoveries) Charge-offs

($836)

$1,296




(1) See Non-GAAP financial measures and reconciliation to GAAP below.

(2) The efficiency ratio (a lower ratio indicates greater efficiency) compares non interest expense to adjusted total revenue (taxable equivalent net interest income, plus non interest income, excluding gains or losses on sales or revaluations of investment securities and other assets and penalties on prepayment of borrowings.

 

 


HUDSON VALLEY HOLDING CORP. AND SUBSIDIARIES

Selected Quarterly Balance Sheet Data

(Dollars in thousands except per share data)








Mar 31

Dec 31

Sep 30

Jun 30

Mar 31


2014

2013

2013

2013

2013







Period End Balances:






Total Assets

$2,906,201

$2,999,199

$3,021,520

$2,981,975

$2,828,809

Total Investments

$538,292

$548,436

$536,339

$530,704

$483,792

Net Loans

$1,632,795

$1,606,179

$1,552,125

$1,454,191

$1,386,694

Goodwill and Other Intangible Assets

$5,807

$5,855

$24,602

$24,650

$24,697

Total Deposits

$2,562,018

$2,633,744

$2,664,940

$2,625,115

$2,464,197

Total Stockholders' Equity

$287,553

$284,309

$290,702

$289,466

$292,895

Tangible Common Equity (1)

$281,746

$278,454

$266,100

$264,816

$268,198

Common Shares Outstanding

20,032,431

19,935,559

19,903,337

19,898,145

19,880,657

Book Value Per Share

$14.35

$14.26

$14.61

$14.55

$14.73

Tangible Book Value Per Share (1)

$14.06

$13.97

$13.37

$13.31

$13.49

Tangible Common Equity Ratio - HVHC (1)

9.7%

9.3%

8.9%

9.0%

9.6%







Tier 1 Leverage Ratio - HVHC

9.7%

9.5%

9.2%

9.3%

9.5%

Tier 1 Risk Based Capital Ratio - HVHC

16.2%

16.2%

15.9%

16.5%

17.1%

Total Risk Based Capital Ratio - HVHC

17.5%

17.5%

17.2%

17.7%

18.3%

Tier 1 Leverage Ratio - HVB

9.5%

9.3%

9.0%

9.1%

9.3%

Tier 1 Risk Based Capital Ratio - HVB

15.9%

15.8%

15.7%

16.2%

16.8%

Total Risk Based Capital Ratio - HVB

17.2%

17.1%

16.9%

17.4%

18.0%







Gross Loans (excluding Loans Held-For-Sale):






Commercial Real Estate

$587,366

$593,476

$598,996

$594,301

$576,409

Construction

81,331

88,311

82,310

72,337

70,212

Residential Multi-Family

249,661

226,898

214,853

196,438

195,016

Residential Other

429,379

432,999

396,477

328,922

294,798

Commercial and Industrial

284,025

258,578

254,723

261,469

249,794

Individuals

12,908

17,388

17,352

16,752

17,696

Lease Financing

14,000

13,140

12,068

10,154

11,043

Total Loans

$1,658,670

$1,630,790

$1,576,779

$1,480,373

$1,414,968







Asset Quality - Period End:






Allowance for Loan Losses

$26,904

$25,990

$25,863

$25,926

$26,088

Loans 31-89 Days Past Due Accruing

$9,590

$4,625

$3,704

$8,824

$19,323

Loans 90 Days or More Past Due Accruing (90 PD)

$0

$0

$0

$0

$0

Nonaccrual Loans (NAL)

$21,006

$23,489

$33,964

$30,267

$32,140

Other Real Estate Owned (OREO)

$0

$0

$0

$0

$0

Nonperforming Assets (90 PD+NAL+OREO)

$21,006

$23,489

$33,964

$30,267

$32,140

Allowance / Total Loans

1.62%

1.59%

1.64%

1.75%

1.84%

NAL / Total Loans

1.27%

1.44%

2.15%

2.04%

2.27%

NAL + 90 PD / Total Loans

1.27%

1.44%

2.15%

2.04%

2.27%

NAL + 90 PD + OREO / Total Assets

0.72%

0.78%

1.12%

1.01%

1.14%

Nonperforming Assets / Total Assets

0.72%

0.78%

1.12%

1.01%

1.14%







(1) See Non-GAAP financial disclosures and reconciliation to GAAP below.

 

 


HUDSON VALLEY HOLDING CORP. AND SUBSIDIARIES

Selected Quarterly Income Statement Data

(Dollars in thousands except per share data)








3 Months
Ended

3 Months
Ended

3 Months
Ended

3 Months
Ended

3 Months
Ended


Mar 31

Dec 31

Sep 30

Jun 30

Mar 31


2014

2013

2013

2013

2013







Interest Income

$22,835

$21,946

$22,409

$22,547

$22,681

Interest Expense

1,106

1,336

1,396

1,479

1,435

Net Interest Income

21,729

20,610

21,013

21,068

21,246

Provision for Loan Losses

78

648

767

289

772

Non Interest Income

2,479

2,557

4,189

3,881

4,517

Non Interest Expense

21,790

39,126

21,546

19,818

19,611

Income (Loss) Before Income Taxes

2,340

(16,607)

2,889

4,842

5,380

Income Taxes

738

(8,104)

394

1,355

1,729

Net Income (Loss)

$1,602

($8,503)

$2,495

$3,487

$3,651

Diluted Earnings (Loss) Per Share

$0.08

($0.43)

$0.13

$0.18

$0.18

Net Interest Margin

3.14%

2.95%

2.99%

3.06%

3.18%

Average Cost of Deposits (1)

0.17%

0.18%

0.18%

0.20%

0.20%







(1) Includes noninterest bearing deposits






 

 


HUDSON VALLEY HOLDING CORP. AND SUBSIDIARIES

Non-GAAP Financial Measures and Reconciliation to GAAP

(Dollars in thousands except per share data)





Three Months Ended


March 31


2014

2013

Total interest earning assets:



  As reported

$2,763,987

$2,670,561

  Unrealized (loss) on securities



    available-for-sale (a)

(4,957)

(108)

Adjusted total interest earning assets (1)

$2,768,944

$2,670,669

Net interest income:



  As reported

$21,729

$21,246

  Adjustment to tax equivalency basis (b)

339

414

Adjusted net interest earnings (1)

$22,068

$21,660

Net yield on interest earning assets:



  As reported

3.14%

3.18%

  Effects of (a) and (b) above

0.05%

0.06%

Adjusted net yield on interest earning assets (1)

3.19%

3.24%

Average stockholders' equity:



  As reported

$286,740

$290,950

  Effects of (a) and (b) above

(3,107)

53

Adjusted average stockholders' equity (1)

$289,847

$290,897

Interest income:



  As reported

$22,835

$22,681

  Adjustment to tax equivalency basis (b)

339

414

Adjusted interest income (1)

$23,174

$23,095

Gross yield on interest earning assets:



  As reported

3.30%

3.40%

  Effects of (a) and (b) above

0.05%

0.06%

Adjusted gross yield on interest earning assets (1)

3.35%

3.46%




 

 


HUDSON VALLEY HOLDING CORP. AND SUBSIDIARIES

Non-GAAP Financial Measures and Reconciliation to GAAP (Continued)

(Dollars in thousands except per share data)








Mar 31

Dec 31

Sep 30

Jun 30

Mar 31


2014

2013

2013

2013

2013







Tangible Equity Ratio:






Total Stockholders' Equity:






As reported

$287,553

$284,309

$290,702

$289,466

$292,895

Less: Goodwill and other intangible

assets

5,807

5,855

24,602

24,650

24,697

Tangible stockholders' equity

$281,746

$278,454

$266,100

$264,816

$268,198

Total Assets:






As reported

$2,906,201

$2,999,199

$3,021,520

$2,981,975

$2,828,809

Less: Goodwill and other intangible

assets

5,807

5,855

24,602

24,650

24,697

Tangible Assets

$2,900,394

$2,993,344

$2,996,918

$2,957,325

$2,804,112

Tangible equity ratio (2)

9.7%

9.3%

8.9%

9.0%

9.6%

Tangible Book Value Per Share:






Tangible stockholders' equity

$281,746

$278,454

$266,100

$264,816

$268,198

Common shares outstanding

20,032,431

19,935,559

19,903,337

19,898,145

19,880,657

Tangible book value per share (2)

$14.06

$13.97

$13.37

$13.31

$13.49


(1) Adjusted total interest earning assets, net interest earnings, net yield on interest earning assets and average stockholders' equity exclude the effects of unrealized net gains and losses on securities available for sale. These are non-GAAP financial measures. Management believes that this alternate 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. As noted in the Company's 2014 Proxy Statement, net income as a percentage of adjusted average stockholders' equity is one of several factors utilized by management to determine total compensation.


(2) Tangible equity ratio and tangible book value for share are non-GAAP financial measurements. Management believes these non-GAAP financial measures provide information useful to investors in understanding the Company's underlying operating performance and trends, and facilitates comparisons with the performance of other banks and are used by management to analyze the relative strength of the Company's capital position.

 

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