Hudson Valley Holding Corp. Announces Financial Results For The Second Quarter Of 2014 -- Loans grew 7% versus prior quarter --

-- Deposits grew 12% versus prior quarter --

-- $304 million investment securities portfolio purchase deploys liquidity into higher yielding assets --

-- Appointment of chief banking officer augments executive team --

-- Cash dividend increased to $0.08 per share --

YONKERS, N.Y., July 25, 2014 /PRNewswire/ -- Hudson Valley Holding Corp. (NYSE: HVB) reported second quarter 2014 earnings, benefiting from loan and investment portfolio growth, credit quality improvement, and continued low funding costs.

The parent company of Hudson Valley Bank earned $2.4 million, or $0.12 per diluted share, in the second quarter of 2014, compared to $1.6 million, or $0.08 per diluted share, in the first quarter of 2014, and $3.5 million, or $0.18 per diluted share, in the second quarter of 2013. The Company recorded approximately $0.5 million ($0.3 million after tax, or $0.02 per diluted share) of charges related to executive severance payments as well as professional fees incurred to expand its residential lending operation.

"We are pleased that our strategy to deploy liquidity, diversify our product offerings and expand our customer base is positioning the Company to generate enhanced profitability and growth," President and Chief Executive Officer Stephen R. Brown said. "The addition of our recently announced Chief Banking Officer rounds out our management team, and enables us to strengthen our relationships with our long standing customers as well as bring our successful high touch banking experience to an expanded customer base."

Balance Sheet
Cash and cash equivalents totaled $507.4 million at June 30, 2014, decreasing 15.6 percent during the second quarter and 27.5 percent from December 31, 2013.

Investment securities totaled $844.7 million at June 30, 2014, increasing 56.9 percent during the second quarter and 54.0 percent from December 31, 2013. During June 2014, the Company purchased $304 million of high quality U.S. government agency bonds, mortgage-backed securities and collateralized mortgage-backed obligations. The securities had a 1.79 percent yield, a 4.8 year average life and duration of 3.8 years. The purchase enabled the Company to deploy liquidity into higher yielding assets with strong cash flows that can be reinvested into loans over the next 18 to 24 months.

Net loans totaled $1.74 billion at June 30, 2014, increasing 6.7 percent during the second quarter and 8.1 percent from December 31, 2013.

Commercial and industrial loans of $308.6 million represented 17.4 percent of total loans at June 30, 2014, compared to 17.1 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 $302.4 million at June 30, 2014, represented 17.1 percent of total loans, compared to 19.0 percent at the end of the linked quarter and 15.0 percent at the end of the year-ago quarter.

Deposits totaled $2.86 billion at June 30, 2014, increasing 11.7 percent during the second quarter and 8.7 percent from December 31, 2013.

The Company maintained very high levels of core deposits, which represented 97 percent of total deposits at the end of the second quarter of 2014. Core deposits, which exclude time deposits greater than $100,000, totaled $2.8 billion at June 30, 2014, compared to $2.5 billion at both December 31, 2013 and June 30, 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 $20.5 million at June 30, 2014, compared to $23.5 million at December 31, 2013 and $30.3 million at June 30, 2013. NPAs totaled 0.64 percent of total assets at June 30, 2014, compared to 0.78 percent at December 31, 2013 and 1.01 percent at June 30, 2013.

Net charge-offs were $0.1 million for the second quarter of 2014, compared to net recoveries of $0.8 million in the linked quarter and net charge-offs of $0.5 million in the year-ago quarter. As a percentage of average loans, annualized net charge-offs were 0.02 percent for the second quarter of 2014, and annualized net charge-offs were 0.13 percent in the year-ago quarter.

The Company's allowance for loan losses was $27.3 million at June 30, 2014 compared to $26.0 million at December 31, 2013 and $25.9 million at June 30, 2013. The allowance measured 1.54 percent, 1.59 percent and 1.75 percent of total loans at each of those dates, respectively, reflecting both loan growth and continued improvement in overall credit quality.

Classified assets at June 30, 2014 represented 16.4 percent of Tier 1 capital plus the allowance for loan losses, compared to 20.7 percent at December 31, 2013 and 30.8 percent at June 30, 2013.

The Company's provision for loan losses in the second quarter of 2014 was $0.5 million, compared to $0.1 million in the linked quarter and $0.3 million in the year-ago quarter.

Revenues and Margin
Net interest income was $22.1 million in the second quarter of 2014, compared to $21.7 million in the linked quarter and $21.1 million in the year-ago quarter.

The Company's net interest margin was 3.05 percent in the second quarter of 2014, compared to 3.14 percent in the linked quarter and 3.06 percent in the year-ago quarter.

The yield on interest-earning assets averaged 3.22 percent in the second quarter of 2014, compared to 3.30 percent in the linked quarter and 3.27 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 both the second quarter of 2014, and the linked quarter and 0.20 percent in the year-ago quarter.

Non-interest income was $3.9 million for the second quarter of 2014, compared to $2.5 million for the linked quarter, which included a $1.9 million prepayment penalty on FHLB borrowings, and $3.9 million in the year-ago quarter.

Non-Interest Expense
Total non-interest expense for the second quarter of 2014 was $22.1 million, compared to $21.8 million in the linked quarter and $19.8 million in the year-ago quarter. 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 Hudson Valley's asset based lending and equipment financing units. As such, salaries and employee benefits expense was $12.7 million in the second quarter of 2014, compared to $13.0 million in the linked quarter and $11.1 million in the year-ago quarter. We believe any incremental increases in non-interest expense will be largely dependent upon expanding into new products and businesses.

Quarterly Cash Dividend and Capital Management
The Company's board of directors declared a quarterly cash dividend of $0.08 per share, payable on August 15, 2014, to all common stock shareholders of record as of the close of business on August 8, 2014.

At June 30, 2014, the Company maintained a total risk-based capital ratio of 16.0 percent, a Tier 1 risk-based capital ratio of 14.7 percent, and a Tier 1 leverage ratio of 9.4 percent. Its Hudson Valley Bank subsidiary at June 30, 2014 maintained a total risk-based capital ratio of 15.7 percent, a Tier 1 risk-based capital ratio of 14.4 percent, and a Tier 1 leverage ratio of 9.2 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 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 Monday, July 28, 2014 at 10:00 AM ET:

Domestic (toll free): 1-877-508-9602; International (toll): +1-412-317-1076.

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

A replay of the call will be available one hour from the close of the conference through August 8, 2014 at 9:00 AM ET:

Domestic Toll Free: 1-877-344-7529 - Conference # 10048930; International Toll: +1-412-317-0088 - Conference # 10048930.

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 $3.2 billion in assets, $2.9 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 June 30, 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 June 30, 2014 and 2013

(In thousands, except per share data)





Three Months Ended


June 30


2014

2013

Interest Income:



Loans, including fees

$19,505

$18,826

Securities:



Taxable

2,755

2,390

Exempt from Federal income taxes

622

780

Federal funds sold

8

11

Deposits in banks

391

540

Total interest income

23,281

22,547

Interest Expense:



Deposits

1,172

1,292

Securities sold under repurchase agreements and other short-term borrowings

9

7

Other borrowings

-

180

Total interest expense

1,181

1,479

Net Interest Income

22,100

21,068

Provision for loan losses

460

289

Net interest income after provision for loan losses

21,640

20,779

Non-Interest Income:



Service charges

1,415

1,394

Investment advisory fees

1,871

1,959

Realized gains on securities available for sale, net

12

-

Other income

633

528

Total non-interest income

3,931

3,881

Non-Interest Expense:



    Salaries and employee benefits

12,693

11,120

    Occupancy

2,365

2,101

Professional services

1,928

1,731

Equipment

980

1,001

Business development

927

591

FDIC assessment

522

949

Other operating expenses

2,675

2,325

Total non-interest expense

22,090

19,818

Income Before Income Taxes

3,481

4,842

Income Taxes

1,041

1,355

Net Income

$2,440

$3,487

Basic Earnings Per Common Share

$0.12

$0.18

Diluted Earnings Per Common Share

$0.12

$0.18

 

 

HUDSON VALLEY HOLDING CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the six months ended June 30, 2014 and 2013

(In thousands, except per share data)






Six Months Ended



June 30



2014

2013


Interest Income:




Loans, including fees

$39,043

$38,085


Securities:




Taxable

5,073

4,585


Exempt from Federal income taxes

1,252

1,548


Federal funds sold

16

22


Deposits in banks

732

988


Total interest income

46,116

45,228


Interest Expense:




Deposits

2,262

2,539


Securities sold under repurchase agreements and other short-term borrowings

15

16


Other borrowings

10

359


Total interest expense

2,287

2,914


Net Interest Income

43,829

42,314


Provision for loan losses

538

1,061


Net interest income after provision for loan losses

43,291

41,253


Non-Interest Income:




Service charges

3,198

3,133


Investment advisory fees

3,798

3,892


Realized gains on securities available for sale, net

38

-


Gains on sales and revaluation of loans held for sale and other real estate owned, net

-

17


Prepayment penalty - FHLB Borrowings

(1,860)

-


Other income

1,236

1,356


Total non-interest income

6,410

8,398


Non-Interest Expense:




    Salaries and employee benefits

25,732

22,402


    Occupancy

4,384

4,210


Professional services

3,621

3,236


Equipment

1,978

2,057


Business development

1,598

1,043


FDIC assessment

1,128

1,893


Other operating expenses

5,439

4,588


Total non-interest expense

43,880

39,429


Income Before Income Taxes

5,821

10,222


Income Taxes

1,779

3,084


Net Income

$4,042

$7,138


Basic Earnings Per Common Share

$0.20

$0.36


Diluted Earnings Per Common Share

$0.20

$0.36



 


 


HUDSON VALLEY HOLDING CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

June 30, 2014 and December 31, 2013

(In thousands, except share and per share data)





June 30

December 31


2014

2013

ASSETS



Cash and non-interest earning due from banks

$52,856

$37,711

Interest earning deposits in banks

454,577

661,643

Total cash and cash equivalents

507,433

699,354

Federal funds sold

15,539

27,134

Securities available for sale, at estimated fair value (amortized cost of $839,454 in



2014 and $550,785 in 2013)

839,193

542,198

Securities held to maturity, at amortized cost (estimated fair value of $5,758 in



2014 and $6,556 in 2013)

5,466

6,238

Federal Home Loan Bank of New York (FHLB) stock

3,212

3,478

Loans (net of allowance for loan losses of $27,275 in 2014 and $25,990 in 2013)

1,742,569

1,606,179

Accrued interest and other receivables

17,394

14,663

Premises and equipment, net

15,039

15,103

Deferred income tax, net

24,513

31,433

Bank owned life insurance

42,387

41,224

Goodwill

5,142

5,142

Other intangible assets

618

713

Other assets

6,879

6,340

TOTAL ASSETS

$3,225,384

$2,999,199




LIABILITIES



Deposits:



Non-interest bearing

$1,082,169

$1,069,631

Interest bearing

1,777,707

1,564,113

Total deposits

2,859,876

2,633,744

Securities sold under repurchase agreements and other short-term borrowings

46,072

34,379

Other borrowings

-

16,388

Accrued interest and other liabilities

27,390

30,379

TOTAL LIABILITIES

2,933,338

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



19,984,352 and 19,935,559 shares in 2014 and 2013, respectively

4,257

4,247

Additional paid-in capital

351,860

351,108

Retained earnings (deficit)

(5,465)

(7,111)

Accumulated other comprehensive loss

(1,042)

(6,371)

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

(57,564)

(57,564)

TOTAL STOCKHOLDERS' EQUITY

292,046

284,309

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$3,225,384

$2,999,199










 

 

HUDSON VALLEY HOLDING CORP. AND SUBSIDIARIES

Average Balances and Interest Rates

For the three months ended June 30, 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 June 30,



2014




2013


(Unaudited)

Average


Yield/


Average


Yield/


Balance

Interest (3)

Rate


Balance

Interest (3)

Rate

ASSETS








Interest earning assets:








Deposits in Banks

$579,589

$391

0.27%


$822,288

$540

0.26%

Federal funds sold

19,898

8

0.16%


23,279

11

0.19%

Securities: (1)








Taxable

530,332

2,755

2.08%


421,394

2,390

2.27%

Exempt from federal income taxes

96,053

957

3.99%


82,236

1,200

5.84%

Loans, net (2)

1,671,938

19,505

4.67%


1,409,875

18,826

5.34%

Total interest earning assets

2,897,810

23,616

3.26%


2,759,072

22,967

3.33%

Non-interest earning assets:








Cash & due from banks

55,965




60,270



Other assets

108,621




132,272



Total non-interest earning assets

164,586




192,542



Total assets

$3,062,396




$2,951,614



LIABILITIES AND STOCKHOLDERS' EQUITY








Interest bearing liabilities:








Deposits:








Money market

$951,827

$793

0.33%


$894,878

$784

0.35%

Savings

122,539

36

0.12%


123,925

95

0.31%

Time

113,904

132

0.46%


124,058

155

0.50%

Checking with interest

510,645

211

0.17%


442,048

258

0.23%

Securities sold under repo & other s/t borrowings

32,297

9

0.11%


26,115

7

0.11%

Other borrowings

0

0

0.00%


16,412

180

4.39%

Total interest bearing liabilities

1,731,212

1,181

0.27%


1,627,436

1,479

0.36%

Non-interest bearing liabilities:








Demand deposits

1,014,081




1,001,674



Other liabilities

25,947




27,658



Total non-interest bearing liabilities

1,040,028




1,029,332



Stockholders' equity (1)

291,156




294,846



Total liabilities and stockholders' equity

$3,062,396




$2,951,614



Net interest earnings


$22,435




$21,488


Net yield on interest earning assets



3.10%




3.12%









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

(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, 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.



Six Months Ended June 30,



2014




2013


(Unaudited)

Average


Yield/


Average


Yield/


Balance

Interest (3)

Rate


Balance

Interest (3)

Rate

ASSETS








Interest earning assets:








 Deposits in Banks

$582,369

$732

0.25%


$787,982

$988

0.25%

 Federal funds sold

20,141

16

0.16%


24,415

22

0.18%

 Securities: (1)








    Taxable

493,825

5,073

2.05%


403,689

4,585

2.27%

    Exempt from federal income taxes

93,621

1,926

4.11%


83,058

2,382

5.74%

 Loans, net (2)

1,644,048

39,043

4.75%


1,415,970

38,085

5.38%

Total interest earning assets

2,834,004

46,790

3.30%


2,715,114

46,062

3.39%

Non-interest earning assets:








 Cash & due from banks

57,671




56,284



 Other assets

110,092




134,438



Total non-interest earning assets

167,763




190,722



Total assets

$3,001,767




$2,905,836



LIABILITIES AND STOCKHOLDERS' EQUITY








Interest bearing liabilities:








 Deposits:








    Money market

$923,728

$1,538

0.33%


$878,399

$1,625

0.37%

    Savings

123,420

79

0.13%


127,108

187

0.29%

    Time

114,468

265

0.46%


126,521

318

0.50%

    Checking with interest

483,674

380

0.16%


405,065

409

0.20%

 Securities sold under repo & other s/t borrowings

30,608

15

0.10%


28,019

16

0.11%

 Other borrowings

453

10

4.42%


16,417

359

4.37%

Total interest bearing liabilities

1,676,351

2,287

0.27%


1,581,529

2,914

0.37%

Non-interest bearing liabilities:








 Demand deposits

1,006,537




1,002,967



 Other liabilities

28,375




28,458



Total non-interest bearing liabilities

1,034,912




1,031,425



Stockholders' equity (1)

290,504




292,882



Total liabilities and stockholders' equity

$3,001,767




$2,905,836



Net interest earnings


$44,503




$43,148


Net yield on interest earning assets



3.14%




3.18%









-----------------------------------------------------
(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

Second Quarter 2014 and 2013

(Dollars in thousands, except per share data)








Three Months Ended

Jun 30, 2014

Three Months Ended

Jun 30, 2013

Six Months Ended

Jun 30, 2014

Six Months Ended

Jun 30, 2013








Earnings:






Net Interest Income

$22,100

$21,068

$43,829

$42,314


Non-Interest Income

$3,931

$3,881

$6,410

$8,398


Non-Interest Expense

$22,090

$19,818

$43,880

$39,429


Net Income

$2,440

$3,487

$4,042

$7,138


Net Interest Margin

3.05%

3.06%

3.10%

3.12%


Net Interest Margin (FTE) (1)

3.10%

3.12%

3.14%

3.18%








Diluted Earnings Per Share

$0.12

$0.18

$0.20

$0.36


Dividends Per Share

$0.06

$0.06

$0.12

$0.12


Return on Average Equity

3.37%

4.75%

2.80%

4.88%


Return on Average Assets

0.32%

0.47%

0.27%

0.49%


Efficiency Ratio (2)

83.82%

78.12%

83.21%

76.52%








Average Balances:






Average Assets

$3,060,221

$2,949,423

$2,998,209

$2,904,681


Average Net Loans

$1,671,938

$1,409,875

$1,644,048

$1,415,970


Average Investments

$626,385

$503,630

$587,446

$486,747


Average Interest Earning Assets

$2,895,635

$2,756,881

$2,830,446

$2,713,959


Average Deposits

$2,712,996

$2,586,583

$2,651,827

$2,540,060


Average Borrowings

$32,297

$42,527

$31,061

$44,436


Average Interest Bearing Liabilities

$1,731,212

$1,627,436

$1,676,351

$1,581,529


Average Stockholders' Equity

$289,761

$293,616

$288,258

$292,290








Asset Quality - During Period:






Provision for Loan Losses

$460

$289

$538

$1,061


Net Charge-offs (Recoveries)

$90

$452

($746)

$1,748








(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)








Jun 30

Mar 31

Dec 31

Sep 30

Jun 30


2014

2014

2013

2013

2013







Period End Balances:






Total Assets

$3,225,359

$2,906,201

$2,999,199

$3,021,520

$2,981,975

Total Investments

$844,659

$538,292

$548,436

$536,339

$530,704

Net Loans

$1,742,569

$1,632,795

$1,606,179

$1,552,125

$1,454,191

Goodwill and Other Intangible Assets

$5,760

$5,807

$5,855

$24,602

$24,650

Total Deposits

$2,859,876

$2,562,018

$2,633,744

$2,664,940

$2,625,115

Total Stockholders' Equity

$292,046

$287,553

$284,309

$290,702

$289,466

Tangible Common Equity (1)

$286,286

$281,746

$278,454

$266,100

$264,816

Common Shares Outstanding

19,984,352

20,032,431

19,935,559

19,903,337

19,898,145

Book Value Per Share

$14.61

$14.35

$14.26

$14.61

$14.55

Tangible Book Value Per Share (1)

$14.33

$14.06

$13.97

$13.37

$13.31

Tangible Common Equity Ratio - HVHC (1)

8.9%

9.7%

9.3%

8.9%

9.0%







Tier 1 Leverage Ratio - HVHC

9.4%

9.7%

9.5%

9.2%

9.3%

Tier 1 Risk Based Capital Ratio - HVHC

14.7%

16.2%

16.2%

15.9%

16.5%

Total Risk Based Capital Ratio - HVHC

16.0%

17.5%

17.5%

17.2%

17.7%

Tier 1 Leverage Ratio - HVB

9.2%

9.5%

9.3%

9.0%

9.1%

Tier 1 Risk Based Capital Ratio - HVB

14.4%

15.9%

15.8%

15.7%

16.2%

Total Risk Based Capital Ratio - HVB

15.7%

17.2%

17.1%

16.9%

17.4%







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






Commercial Real Estate

$622,615

$587,366

$593,476

$598,996

$594,301

Construction

87,146

81,331

88,311

82,310

72,337

Residential Multi-Family

295,008

249,661

226,898

214,853

196,438

Residential Other

417,297

429,379

432,999

396,477

328,922

Commercial and Industrial

308,555

284,025

258,578

254,723

261,469

Individuals

11,427

12,908

17,388

17,352

16,752

Lease Financing

27,049

14,000

13,140

12,068

10,154

Total Loans

$1,769,097

$1,658,670

$1,630,790

$1,576,779

$1,480,373







Asset Quality - Period End:






Allowance for Loan Losses

$27,275

$26,904

$25,990

$25,863

$25,926

Loans 31-89 Days Past Due Accruing

$5,572

$9,590

$4,625

$3,704

$8,824

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

$0

$0

$0

$0

$0

Nonaccrual Loans (NAL)

$20,546

$21,006

$23,489

$33,964

$30,267

Other Real Estate Owned (OREO)

$0

$0

$0

$0

$0

Nonperforming Loans Held For Sale (HFS)

$0

$0

$0

$0

$0

Nonperforming Assets (90 PD+NAL+OREO+HFS)

$20,546

$21,006

$23,489

$33,964

$30,267

Allowance / Total Loans

1.54%

1.62%

1.59%

1.64%

1.75%

NAL / Total Loans

1.16%

1.27%

1.44%

2.15%

2.04%

NAL + 90 PD / Total Loans

1.16%

1.27%

1.44%

2.15%

2.04%

NAL + 90 PD + OREO / Total Assets

0.64%

0.72%

0.78%

1.12%

1.01%

Nonperforming Assets / Total Assets

0.64%

0.72%

0.78%

1.12%

1.01%







(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)








Three Months Ended

Jun 30, 2014

Three Months Ended

Mar 31, 2014

Three Months Ended

Dec 31, 2013

Three Months Ended

Sep 30, 2013

Three Months Ended

Jun 30, 2013







Interest Income

$23,281

$22,835

$21,946

$22,409

$22,547

Interest Expense

1,181

1,106

1,336

1,396

1,479

Net Interest Income

22,100

21,729

20,610

21,013

21,068

Provision for Loan Losses

460

78

648

767

289

Non-Interest Income

3,931

2,479

2,557

4,189

3,881

Non-Interest Expense

22,090

21,790

39,126

21,546

19,818

Income (Loss) Before Income Taxes

3,481

2,340

(16,607)

2,889

4,842

Income Taxes

1,041

738

(8,104)

394

1,355

Net Income (Loss)

$2,440

$1,602

($8,503)

$2,495

$3,487

Diluted Earnings (Loss) Per Share

$0.12

$0.08

($0.43)

$0.13

$0.18

Net Interest Margin

3.05%

3.14%

2.95%

2.99%

3.06%

Average Cost of Deposits (1)

0.17%

0.17%

0.18%

0.18%

0.20%







(1) Includes noninterest bearing deposits














 

 

HUDSON VALLEY HOLDING CORP. AND SUBSIDIARIES

Non-GAAP Financial Measures and Reconciliation to GAAP

(Dollars in thousands)







Three Months Ended

Six Months Ended


June 30

June 30


2014

2013

2014

2013

Total interest earning assets:





  As reported

$2,895,635

$2,756,881

$2,830,446

$2,713,959

  Unrealized (loss) gain on securities





    available-for-sale (a)

(2,175)

(2,191)

(3,558)

(1,155)

Adjusted total interest earning assets (1)

$2,897,810

$2,759,072

$2,834,004

$2,715,114

Net interest income:





  As reported

$22,100

$21,068

$43,829

$42,314

  Adjustment to tax equivalency basis (b)

335

420

674

834

Adjusted net interest income (1)

$22,435

$21,488

$44,503

$43,148

Net yield on interest earning assets:





  As reported

3.05%

3.06%

3.10%

3.12%

  Effects of (a) and (b) above

0.05%

0.06%

0.04%

0.06%

Adjusted net yield on interest earning assets (1)

3.10%

3.12%

3.14%

3.18%

Average stockholders' equity:





  As reported

$289,761

$293,616

$288,258

$292,290

  Effects of (a) and (b) above

(1,395)

(1,230)

(2,246)

(592)

Adjusted average stockholders' equity (1)

$291,156

$294,846

$290,504

$292,882

Interest income:





  As reported

$23,281

$22,547

$46,116

$45,228

  Adjustment to tax equivalency basis (b)

335

420

674

834

Adjusted interest income (1)

$23,616

$22,967

$46,790

$46,062

Gross yield on interest earning assets:





  As reported

3.22%

3.27%

3.26%

3.33%

  Effects of (a) and (b) above

0.04%

0.06%

0.04%

0.06%

Adjusted gross yield on interest earning assets (1)

3.26%

3.33%

3.30%

3.39%

 

 

HUDSON VALLEY HOLDING CORP. AND SUBSIDIARIES

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

(Dollars in thousands, except per share data)











June 30

Mar 31

Dec 31

Sep 30

Jun 30




2014

2014

2013

2013

2013











Tangible Equity Ratio:








Total Stockholders' Equity:








As reported

$292,046

$287,553

$284,309

$290,702

$289,466



Less: Goodwill and other intangible assets

5,760

5,807

5,855

24,602

24,650



Tangible stockholders' equity

$286,286

$281,746

$278,454

$266,100

$264,816



Total Assets:








As reported

$3,225,412

$2,906,201

$2,999,199

$3,021,520

$2,981,975



Less: Goodwill and other intangible assets

5,760

5,807

5,855

24,602

24,650



Tangible Assets

$3,219,652

$2,900,394

$2,993,344

$2,996,918

$2,957,325



Tangible equity ratio (2)

8.9%

9.7%

9.3%

8.9%

9.0%



Tangible Book Value Per Share:








Tangible stockholders' equity

$286,286

$281,746

$278,454

$266,100

$264,816



Common shares outstanding

19,984,352

20,032,431

19,935,559

19,903,337

19,898,145



Tangible book value per share (2)

$14.33

$14.06

$13.97

$13.37

$13.31









(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.










 

SOURCE Hudson Valley Holding Corp.



RELATED LINKS
http://www.hudsonvalleybank.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.