Hudson Valley Holding Corp. Announces Financial Results For The Fourth Quarter And 12 Months Of 2012.
— Focuses Capital and Investment on Growing Its Strong and
Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
Banking and Fee Businesses with Plans to
, southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W).
Branches Representing Less than 3% of Deposits
— Declares $0.06 Quarterly Cash Dividend as Part of Capital
Management Strategy to Fuel Growth of Fee Businesses and Lending
, city (1990 pop. 188,082), Westchester co., SE N.Y., on the east bank of the Hudson, in a hilly region just N of the Bronx (New York City); inc. 1855. Its elevator works date from 1852.
, N.Y., Jan. 31, 2013 /PRNewswire/ —
HVB Hawaii Visitors Bureau
HVB Central-European International Bank
HVB High Volume Breeder
) today reported fourth quarter and 12 month results for
2012, while detailing its plans for focusing capital and investment on
growing the bank’s New York market operations, fee-generating
businesses and a more
“Serving small- and mid-sized commercial customers and their
principals, professional service firms and not-for-profit organizations
in metro New York is what we’ve always done best,” President
and Chief Executive Officer
1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and
R. Brown said. “What’s
changing is the number and diversity of products and services we’re
Smallest unit of a habitat that is occupied by an organism. A habitat niche is the physical space occupied by the organism; an ecological niche is the role the organism plays in the community of organisms found in the
customers, in order to take share in our target
market segments and grow in metro New York. As a strong, local bank with
ample capital to meet the needs of our customers and communities, Hudson
Valley is implementing a transformational strategy to successfully
a rapidly evolving business landscape.”
The parent company of Hudson Valley Bank earned $3.1 million, or
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.
2. To lessen the force, strength, purity, or brilliance of, especially by admixture.
share, in the fourth quarter of 2012, compared to net
income of $3.1 million, or $0.16 per share, in the third quarter of 2012
and a net loss of $22.9 million, or $1.18 per share, in the fourth
quarter of 2011. For the 12 months of 2012, the company reported net
income of $29.2 million, or $1.49 per share, compared to a net loss of
$2.1 million, or $0.11 per share for 2011. Prior year losses reflected
write downs associated with the transfer of loans to held-for-sale
31, 2011, while the gains from the successful sales
of those same loans in the first quarter of 2012 boosted net income for
the 12 months of 2012 by $9.4 million on an after-tax basis.
Fourth Quarter Results
Cash totaled $827.5 million at December 31, 2012, up from $78.1
million just one year prior, as a result of the company’s
successful first quarter 2012 loan sales and continued cash flows
generated by the bank’s loan and securities portfolios. Excess cash
tr.v. pro·longed, pro·long·ing, pro·longs
1. To lengthen in duration; protract.
2. To lengthen in extent.
low interest rate environment
dampened the yield on interest-earning assets to 3.50 percent in the
fourth quarter of 2012, compared to 3.84 percent in the linked quarter
and 4.92 percent in the fourth quarter of 2011. Even with its excess
1 Industrial town (1990 pop. 17,233), Middlesex co., E central Mass., on the Assabet River, in an apple-growing region; settled c.1699, inc. 1866.
Valley’s net interest margin was 3.28 percent
in the fourth quarter of 2012, compared to 3.60 percent in the linked
quarter and 4.60 percent in the fourth quarter of 2011.
The company’s historically low average cost of deposits
continued to drop to 0.21 percent in the fourth quarter of 2012, 1 basis
point lower than the linked quarter and 11 basis points below the fourth
quarter of 2011.
The year ending December 31, 2012 saw continued growth of Hudson
Valley’s low-cost core deposit base, which represented 96 percent
of total deposits at year end. Core deposits, which exclude time
deposits greater than $100,000, totaled $2.4 billion at December 31,
2012, representing an increase of $107.9 million over the core deposit
balance at December 31, 2011.
Hudson Valley’s service charge revenue, which continued to
reflect industry wide pressure, was $1.4 million in the fourth quarter
of 2012, compared to $1.5 million in the linked quarter and $1.8 million
in the fourth quarter of 2011. At the same time Hudson Valley’s
investment management fees remained relatively stable at about $2.3
million in the fourth quarter of 2012, the linked quarter and the
year-ago quarter. Total non-interest income was $4.3 million in the
fourth quarter of 2012, compared to $4.4 million in the linked quarter
and $4.1 million in the fourth quarter of 2011.
The bank’s 2012 commitment to retaining key talent in support
of growth opportunities and to address industry
tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates
1. To control or direct according to rule, principle, or law.
is reflected in salaries and benefits expense, which totaled $11.3
million in the fourth quarter of 2012, compared to $11.4 million in the
linked quarter and $8.8 million in the fourth quarter of 2011.
Commercial Loan Portfolio
In the fourth quarter of 2012 the company demonstrated continued
progress toward diversifying its lending base among new and existing
customers in its metro New York markets. Commercial and industrial
(C&I) loan balances grew by $22.7 million, or 34 percent
Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared.
over the third quarter and by $70.3 million, or 32 percent, over the
fourth quarter of 2011. Totaling $288.8 million at December 31, 2012,
C&I rose to its highest level since March 31, 2009 and comprised 20
percent of total loans, up from nearly 18 percent at
and less than 14 percent at the end of the fourth quarter of 2011.
As the company continues to reduce its overall concentration of
commercial real estate (
CRE CCD and Readout Electronics
CRE Camp Response Element
) lending, CRE balances, including
construction and multi-family loans, declined to $821.7 million in the
fourth quarter of 2012, compared to $884.1 million and $1.0 billion in
the linked and year ago quarters, respectively. CRE represented 292
percent of risk-based capital at December 31, 2012, again within its
tr.v. dis·closed, dis·clos·ing, dis·clos·es
1. To expose to view, as by removing a cover; uncover.
2. To make known (something heretofore kept secret).
commitment to maintain concentration levels below
Portfolio Credit Quality
Overall portfolio trends continue to reflect a
Advancing or progressing by regular or continuous degrees:
n. Roman Catholic Church
credit environment across Hudson Valley’s niche commercial
franchise in metropolitan New York. The bank’s improved asset
quality measures also reflect its first quarter 2012 sale of $474
million in held-for-sale loans, including $27.8 million in nonperforming
Hudson Valley’s total nonperforming assets (NPAs), including
nonaccrual loans, nonaccrual loans held for sale, accruing loans
1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent.
DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty.
over 90 days and other real estate owned (OREO), were $35.1
million at December 31, 2012, compared to $42.6 million at September 30,
2012 and $58.9 million at December 31, 2011. NPAs totaled 1.21 percent
of total assets at December 31, 2012, compared to 1.45 percent at
September 30, 2012 and 2.11 percent at December 31, 2011.
Reflecting generally improving credit trends, net charge-offs
declined to $3.0 million for the fourth quarter of 2012, compared to
$4.3 million and $66.1 million in the linked and year-ago quarters,
respectively. As a percentage of average loans, annualized net
charge-offs were 0.82 percent in the fourth quarter of 2012, compared to
1.16 percent in the third quarter of 2012 and 13.0 percent in the fourth
quarter of 2011.
The bank’s provision for loan losses in the fourth quarter of
2012 was $1.5 million, compared to $3.7 million in the linked quarter
and $54.6 million in the fourth quarter of 2011.
The bank’s allowance for loan losses was $26.6 million at
December 31, 2012, compared to $28.1 million at September 30, 2012 and
$30.7 million at December 31, 2011. The allowance measured 1.81 percent,
1.86 percent and 1.95 percent of total loans at each of those dates,
At December 31, 2012, classified assets represented 36.2 percent of
risk-based capital, above its previously disclosed target of below 25
Focus on Strength, Growth
The company also detailed plans for focusing capital and investment
on growing Hudson Valley Bank’s strong and successful New York
market operations, fee-generating businesses and a more diversified
array of loan products for small- and mid-sized commercial customers and
their principals, professional service firms and not-for-profit
organizations in metropolitan New York.
Optimizing Branch Network and Efficiency
These plans include optimizing the efficiency of its branch network,
including the consolidation or
of Hudson Valley’s six
Connecticut locations, representing less than three percent of its $2.5
billion in total deposits, by the middle of 2013. Since entering
Connecticut five years ago, the bank’s branches there have gathered
just $12 million in deposits each, on average, and the critical mass and
Traction is the use of a pulling force to treat muscle and skeleton disorders.
Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis.
necessary for long-term success in that market has not been
realized. The company anticipates annual net savings in excess of $2
million as a result of this action.
Hudson Valley’s New York market branches average nearly $80
million in deposits each, and focusing investment and capital there is
designed to make the bank an even stronger and more aggressive
competitor in communities the company has served for so long and so
well, particularly in Westchester and
industrial town (1990 pop. 16,123), Plymouth co., E Mass.; settled 1673, set off from Abington and inc. 1874. There is light manufacturing.
counties and the
river, c.20 mi (30 km) long, issuing from Kensico Reservoir, SE N.Y., and flowing SW through the Bronx into the East River. The Bronx River Parkway, one of the first limited-access highways in the New York City area, parallels a portion of the river.
, borough of New York City (1990 pop. 2,300,664), 71 sq mi (184 sq km), coextensive with Kings co., SE N.Y.
, indigenous people of North America of the Algonquian-Wakashan linguistic stock (see Native American languages).
, Hudson Valley’s culture of expense control
has historically made it one of the industry’s most efficient
operators. All expenses will be managed to better
even as the bank continues to make investments to drive specific growth
opportunities, balance sheet diversity and address industry regulatory
requirements. At the same time, investments in people and systems are
enabling the company to be more proactive in the market, strengthened by
processes that will help the bank
To moderate in force or intensity.
risk as it identifies and
capitalizes on new business and growth opportunities.
For the fourth quarter of 2012, Hudson Valley’s efficiency
ratio was 75.7 percent, compared to 69.3 percent in the third quarter of
2012 and 52.8 percent in the fourth quarter of 2011. The increase was
largely driven by a decline in net interest income, rather than
increases in non-interest expense.
In the second half of 2012, Hudson Valley began focusing capital and
investment on developing new middle market, small business and other
non-CRE business lending products to successfully grow and
To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries.
loan portfolio, without compromising credit quality, risk management or
market strength. Significant investments have been made to date to lay
the foundation for Hudson Valley’s diversification strategy.
Throughout 2012, it converted and enhanced much of its technology and
critically assessed the necessary talent to support loan
and risk management for an expanded loan portfolio, and the
bank submitted its action plan to its regulators. With these steps
successfully accomplished, the company will focus on execution in
Balanced Approach to Capital Management and Dividends
To fuel the growth of its fee generating businesses and a more
diversified loan portfolio, Hudson Valley intends to
internally generated capital at a faster rate by lowering its cash
dividend. Balancing immediate returns to stockholders with long-term
stockholder value creation, the board
v. de·clared, de·clar·ing, de·clares
1. To make known formally or officially. See Synonyms at announce.
2. To state emphatically or authoritatively; affirm.
a quarterly cash dividend
of $0.06 per share. The dividend is payable on
22, 2013 to all
common stock shareholders of record as of the close of business on
February 11, 2013.
Hudson Valley is lowering its dividend even as it has maintained
high regulatory capital ratios. At December 31, 2012, Hudson Valley
Holding Corp. posted a total
risk-based capital ratio
of 17.7 percent, a
Tier 1 risk-based capital ratio of 16.5 percent, and a Tier 1 leverage
ratio of 9.3 percent. Its Hudson Valley Bank subsidiary at December 31,
2012 posted a total risk-based capital ratio of 17.4 percent, a Tier 1
risk-based capital ratio of 16.2 percent, and a Tier 1 leverage ratio of
As part of its strategy for focusing capital and investment on
growing its New York market, fee-generating businesses and more
diversified loan portfolio, Hudson Valley has targeted non-interest
expense reductions of
1. Almost exact or correct:
5 percent for the 12 months of 2013,
compared to 2012.
Hudson Valley is also focused on growing fee income, principally
from its trust services and investment management businesses, both
organically and through targeted acquisitions of talent, portfolios and
firms in these non-bank businesses.
In addition, the bank is targeting total loan growth of about 10
percent, with total loan originations or purchases projected to exceed
$200 million as Hudson Valley continues to diversify its product
The company’s targeted expense reductions and loan growth
initiatives are estimates and we can provide no assurances that such
targets can be met.
Fourth Quarter and Twelve Month Review
The Company recorded net income for the three month period ended
December 31, 2012 of $3.1 million or $0.16 per diluted share, an
increase of $26.0 million compared to a net loss of $22.9 million or
$1.18 per diluted share for the same period in the prior year. Net
income for the twelve month period ended December 31, 2012 was $29.2
million or $1.49 per diluted share, an increase of $31.3 million
compared to a net loss of $2.1 million or $0.11 per diluted share for
the same period in the prior year.
The increases in earnings for the three and twelve month periods
ended December 31, 2012, compared to the same periods in the prior year,
were primarily due to significant additions in 2011 to the provision for
loan losses which totaled $54.6 million and $64.1 million, respectively,
for the three and twelve month periods ended December 31, 2011, compared
to $1.5 million and $8.5 million, respectively for the same periods in
2012. The large provision in the fourth quarter of 2011 resulted from
write-downs associated with the transfer of $473.8 million of loans to
the held-for-sale status in anticipation of bulk loan sales completed in
the first quarter of 2012. The loan sales were conducted to reduce both
classified loans and the Company’s overall concentration in
commercial real estate loans. The increases in earnings for the three
and twelve month periods ended December 31, 2012, compared to the same
periods in the prior year, were significantly offset by decreases in net
interest income of $8.3 million and $14.6 million, respectively, the
result of excess liquidity remaining from the proceeds of loan sales
conducted in the first and second quarters of 2012. In addition to the
decrease in net interest income, earnings for the three month period
ended December 31, 2012, compared to the same period in the prior year,
reflected slightly lower noninterest income and higher non interest
expenses. The increase in earnings for the twelve month period ended
December 31, 2012, compared to the same period in the prior year, also
Existing before tax deductions:
adj [profit] →
gain of $15.9 million resulting from the successful
completion of loan sales announced in the fourth quarter of 2011 and
completed at the end of the first quarter of 2012, partially offset by
slightly lower noninterest income and higher non interest expenses.
Total loans, excluding loans held for sale, decreased $37.9 million
and $106.2 million during the three and twelve month periods ended
December 31, 2012 compared to the prior periods. The overall decrease
was primarily the result of pay downs and payoffs of existing loans
exceeding new production and additional loan sales conducted in the
second quarter of 2012, partially offset by the purchase of
residential loans in the first quarter of 2012, which were
purchased as partial
tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys
1. To move (military forces) from one combat zone to another.
of proceeds from sales of loans held
for sale. The Company continues to provide lending availability to both
new and existing customers.
Nonperforming assets decreased to $35.1 million at December 31,
2012, compared to $58.9 million at December 31, 2011. Overall asset
quality continued to be adversely affected by the current state of the
economy and the real estate market. Although there is evidence that the
A decline in security prices or economic activity following a period of rising or stable prices or activity.
may have begun to slowly turn around, higher
than normal levels of delinquent and nonperforming loans, slowdowns in
repayments and declines in the loan-to-value ratios on existing loans
continued during 2012. Despite overall reductions in classified and
nonperforming loans, the Company’s loan portfolio continued to be
adversely impacted by the
effects of declines in the demand for
and values of virtually all commercial and residential real estate
properties. These declines, together with the
residential mortgage financing, resulted in some continuing weakness in
the overall asset quality of the Company’s loan portfolio. As a
result of these factors, the Company has continued to follow aggressive
strategies for resolving problem assets and has maintained the allowance
for loan losses at a higher than normal level. The provision for loan
losses totaled $1.5 million and $8.5 million, respectively, for the
three and twelve month periods ended December 31, 2012, reflecting
improvements achieved in the resolutions of classified and nonperforming
loans, partially offset by continued weakness in the overall economy,
and the related effects of this weakness on the Company’s overall
Total deposits increased by $94.7 million during the twelve month
period ended December 31, 2012, compared to the prior year end. The
Company continued to emphasize its core deposit growth, while placing
less emphasis on non core deposits including deposits which are obtained
on a bid basis.
Liquidity from deposit growth and excess loan and investment
repayments over new production was retained in the Company’s
short-term liquidity portfolios, available to fund future loan growth.
With interest rates remaining at historical low levels, this increase in
liquidity contributed to significant margin
external stress applied to an object or substance, tending to cause a decrease in volume (see pressure). Gases can be compressed easily, solids and liquids to a very small degree if at all.
. The net
interest margin was 3.28 percent and 3.88 percent, respectively, for the
three and twelve month periods ended December 31, 2012, compared to 4.60
percent and 4.50 percent, respectively, for the same periods in the
prior year. The Company expects some additional net interest margin
compression in future quarters due to maturing loans and investments
being reinvested at lower interest rates and until redeployment of the
excess proceeds from the recent loan sales and other maturing assets can
be completed in a manner consistent with both the Company’s risk
management policies and the requirements of the OCC. Regardless of the
timing of the
The one or ones mentioned previously.
redeployment, if interest rates continue at
current levels, it is expected that additional downward pressure on net
interest margin will continue.
As a result of the aforementioned activity in the Company’s
core businesses of loans and deposits and other asset/liability
management activities, tax equivalent basis net interest income
decreased by $8.5 million or 27.2 percent to $22.8 million for the three
month period ended December 31, 2012, compared to $31.3 million for the
same period in the prior year. Tax equivalent basis net interest income
decreased by $14.9 million or 12.4 percent to $105.3 million for the
twelve month period ended December 31, 2012, compared to $120.2 million
for the same period in the prior year. The effect of the adjustment to a
tax equivalent basis was $0.4 million and $1.9 million, respectively,
for the three and twelve month periods ended December 31, 2012, compared
to $0.5 million and $2.3 million, respectively, for the same periods in
the prior year.
non interest income
was $4.3 million and $33.8
million, respectively, for the three and twelve month periods ended
December 31, 2012, compared to $4.1 million and $18.9 million,
respectively, for the same periods in the prior year. Non interest
income increased slightly for the three month period ended December 31,
2012, compared to the same period in the prior year, reflecting lower
net losses on sales and revaluations of assets and higher other income,
partially offset by lower service fees and lower investment advisory
fees. The increase in the twelve month period ended December 31, 2012,
compared to the same period in the prior year, resulted from a $15.9
million pretax gain on sales of loans completed in the first quarter of
2012 and higher other income, partially offset by lower service fees,
lower investment advisory fees and higher
securities available-for-sale. Investment advisory fee income was lower
in 2012 primarily as a result of the effects of continued
both domestic and international equity markets. Service charges
decreased due to decreased activity. Pre-tax impairment charges on
securities available for sale were $0.5 million for the twelve month
period ended December 31, 2012 and $0.4 million for the same period in
the prior year. The impairment charges were related to the
Company’s investments in pooled trust preferred securities. Non
interest income also included other losses of $0.5 million and $0.4
million, respectively, for the three and twelve month periods ended
December 31, 2011. These losses related to sales and revaluations of
other real estate owned and loans held for sale.
Non interest expense was $20.6 million and $82.5 million,
respectively, for the three and twelve month periods ended December 31,
2012. This represented increases of $1.6 million or 8.4 percent and $2.3
million or 2.9 percent, respectively, compared to $19.0 million and
$80.2 million, respectively, for the same periods in the prior year. The
overall increase in non interest expense resulted primarily from an
additional provision of $1.3 million related to the previously announced
ongoing investigations by the Securities and Exchange Commission (SEC)
and the Department of Labor (
relate prep →
relate prep → ,
tr.v. sur·round·ed, sur·round·ing, sur·rounds
1. To extend on all sides of simultaneously; encircle.
2. To enclose or confine on all sides so as to bar escape or outside communication.
practices and policies and disclosures about such practices of
the Company’s investment advisory subsidiary, A.R. Schmeidler &
Co., Inc. Based on ongoing discussions with the SEC and the DOL, the
Company believes it has substantially
v. ac·crued, ac·cru·ing, ac·crues
1. To come to one as a gain, addition, or increment:
for any penalties and
related costs anticipated in the final resolution of this matter
although, until final agreement is reached, the exact result cannot be
determined. Other changes in non interest expense included decreases in
costs associated with problem loan resolution and decreases in occupancy
expenses, partially offset by increases in
See Federal Deposit Insurance Corporation (FDIC).
insurance and increases
in investments in technology and personnel to accommodate expanding risk
management requirements and growth and the expansion of services and
products available to new and existing customers.
Hudson Valley’s capital ratios remain significantly in excess
” levels generally applicable to banks
under current regulations. At December 31, 2012, Hudson Valley Holding
Corp. posted a total risk-based capital ratio of 17.7 percent, a Tier 1
risk-based capital ratio of 16.5 percent, and a Tier 1 leverage ratio of
Non-GAAP Financial Disclosures and Reconciliation to
See generally accepted accounting principles (GAAP).
In addition to evaluating Hudson Valley Holding Corp’s results
of operations in
generally accepted accounting
(“GAAP”), management routinely supplements this
evaluation with an analysis of certain non-GAAP financial measures, such
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
1. To examine methodically by separating into parts and studying their interrelations.
2. To separate a chemical substance into its constituent elements to determine their nature or proportions.
the relative strength of Hudson Valley Holding Corp’s
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.
As previously announced, Hudson Valley will hold its quarterly
conference call to review the company’s financial results on
see Sabbath; week.
young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe]
See : Servant
, February 1, 2013 at 10:00 AM ET:
Domestic (toll free): 1-877-317-6016; International (toll): +
All participants should dial in at least ten minutes prior to the
call and request the “HVB Fourth Quarter Earnings Call.”
A replay of the call will be available one hour from the close of
the conference through February 15, 2013 at 9:00 AM ET:
Domestic Toll Free: 1-877-344-7529 – Conference ## 10023304;
International Toll: +1-412-317-0088 – Conference # 10023304.
Participants will be required to state their name and company upon
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, Hudson Valley Holding
Corp. (NYSE: HVB) serves small- and mid-sized businesses,
firms, not-for-profit organizations and select individuals in
metropolitan New York. Headquartered in Yonkers, N.Y., the company
provides a full range of banking, trust and investment management
services to niche commercial customers and their principals throughout
Westchester and Rockland counties, the Bronx, Brooklyn and Manhattan.
Hudson Valley is the largest bank headquartered in Westchester County,
with $2.9 billion in assets, $2.5 billion in deposits and 36 branches at
December 31, 2012. Its common stock is traded on the
New York Stock
and is a
English noble family. It first appeared prominently in the reign of Henry VIII when
John Russell,earl of Bedford, 1486?–1555, rose to military and diplomatic importance.
3000[sup.] Index component. More information
is available at www.hudsonvalleybank.com.
Hudson Valley Holding Corp. (“Hudson Valley”) has made in
this press release various forward-looking statements within the meaning
Private Securities Litigation Reform Act
of 1995 with respect to
earnings, credit quality and other financial and business matters for
periods subsequent to December 31, 2011. These statements may be
identified by such forward-looking
“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, 2011 include, but are not
* our ability to comply with the formal agreement entered into with
Office of the Comptroller of the Currency
(the “OCC”) and
any additional restrictions placed on us as a result of future
regulatory exams or changes in regulatory policy implemented by the OCC
or other bank regulators;
* 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
* the results of the investigation of A.R. Schmeidler & Co.,
Inc. by the Securities and Exchange Commission (the “SEC”) and
the Department of Labor (the “DOL”) and the possibility that
our management’s attention will be
v. di·vert·ed, di·vert·ing, di·verts
1. To turn aside from a course or direction:
to the SEC and DOL
investigations and settlement discussions and we will
costs and legal expenses;
* the adverse effects on the business of A.R. Schmeidler & Co.,
Inc. and our trust department arising from a settlement with the SEC and
* the reduction or our inability 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
1. Advantageous; helpful:
2. Encouraging; propitious:
* further increases in our non-performing loans and allowance for
1. Not producing an intended effect; ineffectual:
2. Inadequate; incompetent:
in managing our commercial real estate portfolio;
* lower than expected future performance of our investment
* 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
, something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although
for such loans;
* lower than expected demand for our products and services;
* possible 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 inability 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 in its
capital plan provided to the OCC, or such higher capital levels as may
* proposed legislative and regulatory action may adversely affect us
* future increased
Federal Deposit Insurance Corporation
(FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000.
, or FDIC,
special assessments or changes to regular assessments;
* potential liabilities under federal and state environmental laws;
* regulatory limitations on
by Hudson Valley or
Hudson Valley Bank.
We assume no obligation for updating any such forward-looking
statements at any given time.
SOURCE Hudson Valley Holding Corp.