Market Overview

Greater Hudson Bank Reports Earnings for the 2018 First Quarter


BARDONIA, N.Y., April 25, 2018 (GLOBE NEWSWIRE) -- Greater Hudson Bank (the "Bank") (OTCQX:GHDS), with assets of $501.3 million, today reported net income of $205,000 or $0.02 per common share for the first quarter of 2018 compared to $664,000 or $0.05 per common share for the 2017 first quarter. Return on average common stockholders' equity was 1.43 percent for the three months ended March 31, 2018 compared to 5.82 percent for the three months ended March 31, 2017, respectively.

Edward T. Lutz, President and CEO stated, "Earnings in the first quarter of 2018 were adversely affected by a number of one-time charges including a decision to write off a long standing problem asset related to the Bank's REO property, an adjustment to the Bank's carrying value of the REO property, one time personnel costs associated with staff reorganization and certain non-recurring legal fees. Absent those costs, net income would have exceeded our internal forecast for the quarter. It is important to note that assets, deposits and loans have resumed a growth trajectory that is in line with our forecasts, as we indicated in the year end 2017 release. It is also important to note that our spread and margins, the life blood of our institution, have widened compared to last year's results. Positively, non-performing assets declined by about 6 percent in the first quarter and we are actively working to effect additional reductions in the coming quarters. Our balance sheet remains strongly capitalized. We look forward to continued expansion in the loan portfolio as our pipeline continues to be robust and we see growth in core deposits, as our team based approach to our core markets continues to be effective."

Financial highlights as of March 31, 2018 compared to December 31, 2017 are as follows:

  • Deposits increased $20.0 million, or 5.2 percent, to $401.7 million.
  • Total assets increased $18.5 million, or 3.8 percent, to $501.3 million.
  • Loans, net of unearned income, increased $18.1 million or 5.6 percent, to $340.7 million.
  • Investments increased $10.3 million, or 8.5 percent, to $131.3 million.

Performance highlights for the three months ended March 31, 2018 compared to the March 31, 2017 period are as follows:

  • Net interest income decreased $41,000, or 1.0 percent, to $4.2 million.
  • Non-interest income increased $36,000 or 12.7 percent to $319,000.
  • Non-interest expense increased $583,000 or 19.0 percent to $3.7 million.
  • The provision for loan losses increased $132,000.

Kenneth J. Torsoe, Chairman of the Board commented, "Our quarterly results are effected by a number of one-time charges, and don't fully reflect the trend of our performance. The underlying components of the Bank's performance continue to improve and should show positive results in the future. Management's plans are being executed in an effective and efficient fashion with a keen eye on developing sound and long lasting customer relationships. We continue to be a soundly operated community bank dedicated to fulfilling our mission to serve the banking needs of commercial clients, non-profits, and municipalities in our core communities."


*Results Unaudited   Three months Ended  
    March 31,
(in thousands, except ratios)
Net interest income   $ 4,165   $ 4,206  
Provision for loan losses     592     461  
Noninterest income     319     283  
Noninterest Expense     3,652     3,069  
Income before income taxes     240     959  
Provision for income taxes     35     295  
Net income   $ 205   $ 664  
Efficiency Ratio   81.4%   68.4%  
Earning Assets   $ 464,109   $ 485,458  
Total Interest Bearing Liabilities     359,698     380,061  
Net interest spread     3.52%     3.40%  
Net interest margin     3.59%     3.47%  

The decrease in net income for the three months ended March 31, 2018 compared to the three months ended March 31, 2017, is primarily attributable to an increase in non-interest expense of $583,000 and an increase of $132,000 to the provision for losses. The increase in non-interest expense is primarily related to one-time charges to salary and commission expenses and legal expenses incurred in the first quarter as part of a management review and reorganization, as well as a write-down of the Bank's OREO property and an increase to the provision for loan losses as of March 31, 2018.


(in thousands, except ratios)   March 31,   December 31,   March 31,
    2018   2017   2017
Total Investments   $ 131,250   $ 120,990   $ 144,145
Loans, net of unearned income     340,702     322,633     328,024
Allowance for loan losses     4,128     3,873     5,020
Total assets     501,339     482,867     502,439
Total deposits     401,731     381,764     401,843
Borrowings     39,187     39,276     41,537
Nonperforming assets     7,746     8,261     13,569
Allowance for loan losses to total net loans     1.21%     1.20%     1.53%
Nonperforming assets to total assets     1.55%     1.71%     2.70%

The Bank's total loans, net of unearned income increased by $18.1 million to $340.7 million as of March 31, 2018 compared to December 31, 2017. Additionally, the Bank increased investments by $10.3 million in the first quarter. The increase in earning assets was funded by the increase in total deposits of $20.0 million and a decrease to cash and due from of $9.1 million as of March 31, 2018 compared to December 31, 2017.

Nonperforming assets decreased $515,000 to $7.7 million as of March 31, 2018 from $8.3 million as of December 31, 2017. The nonperforming assets are comprised of a limited number of relationships that the Bank's management is aggressively attempting to resolve and are closely monitored.


EQUITY Unaudited   As of
(in thousands, except ratios)   March 31,
    2018   2017
Tier 1 Capital   $ 58,470   $ 55,613
Total Stockholders' Equity     56,761     55,815
Book value per common share     4.58     4.53
Tier 1 Leverage Ratio     11.7%     11.0%

The Bank's leverage ratio was 11.7 percent at March 31, 2018 compared to 11.0 percent at March 31, 2017. The Bank continues to be considered a well-capitalized institution under current Federal regulatory guidelines.

Greater Hudson Bank's annual Stockholders' Meeting will be held Thursday, April 26, 2018 at 10:00 a.m. at the Crestview Conference Center, 440 West Nyack Road, West Nyack, NY 10994. All shareholders and interested parties are invited to attend.

Greater Hudson Bank, founded in 2002, is a premier NY community bank which specializes in providing customized banking services, SBA loans, commercial mortgages, and business lines of credit to Hudson Valley-based businesses, non-profits, and municipal agencies. The Bank is chartered by the New York State Department of Financial Services and its deposits are insured by the FDIC. As evidence of the Bank's financial strength, Greater Hudson Bank has been recognized with a superior rating by the country's leading independent bank rating and research firm, BauerFinancial, Inc. Further information can be found on the Bank's website at or by calling 844-GREAT-11.

Forward-Looking Statements: This Press Release may contain certain statements which are not historical facts or which concern the Bank's future operations or economic performance and which are to be considered forward-looking statements. Any such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Bank cautions that all forward-looking statements involve risk and uncertainties, and that actual results may differ from those indicated in the forward-looking statements as a result of various factors, such as changing economic and competitive conditions and other risk and uncertainties. In addition, any statements in this news release regarding historical stock price performance are not indicative of or guarantees of future price performance.

Jenet Ferris
(845) 367-4998

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