Greater Hudson Bank, based in Middletown, reported first-quarter earnings up 62 percent to $709,000, or 7 cents a share, from $438,000, or 4 cents, a year ago. The bank”™s return on equity rose to 7.6.percent from 5.3 percent in last year”™s quarter.
The bank said the rise in profit was due to an increase in net interest income of $536,000, 23 percent, and almost $200,000 in gains on securities transactions.
But that was offset by a 44 percent rise in the provision for loan losses and a 14 percent rise in non-interest expense. “While we saw an increase in our nonperforming loans this past quarter, the increase was primarily related to one loan relationship, which is being monitored closely,” CEO Eric Wiggins said. Loans were up 26 percent to $169 million. “We are seeing good loan demand with a strong pipeline coming into 2012, which has been a main contributor to these results. Net loans outstanding have increased nearly
8 percent since year end,” he said.
The rise in expenses was due to higher salary and marketing expenses as well as expenses related to other outside services.
As of March 31, the bank”™s leverage ratio was 11.7 percent, sufficient to make it a well-capitalized institution under federal regulatory requirements.
Greater Hudson Bank has five branches: Monroe, which opened on April 30, as well as Middletown and Warwick in Orange County; Bardonia, in Rockland County; and White Plains in Westchester County.
Greater Hudson”™s annual stockholder”™s meeting will be held May 22 at 10 a.m. at the Salvation Army Conference Center in West Nyack.
