Hudson Valley Bank

Yonkers, NY · Cert 20693

FDIC · 28 branches

Q1 2015

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2

Part 2Peer Comparison, not published for this institution and quartern/a

Basis

Quarter: Q1 2015, the quarter ended March 31, 2015, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

No peer standings are published for this institution and quarter.

Peer groups below the disclosure floor are suppressed.

Yonkers, NY · Cert 20693

FDIC · 28 branches

Q1 2015

$3.2BAssets

$2.0BLoans

$2.9BDeposits

$297.4MEquity

Loan mix

Deposit mix

Market Position · New York-Newark-Jersey City, NY-NJ-PA · 2014 SOD (annual) · 0.2% share · #36 of 226 inst. · $2.9B of $1405.9B

3.4% Westchester

0.0% New York

1.9% Bronx

0.9% Rockland

Earnings: ROA of 0.64%, up 44 bps year over year; NIM at 3.06%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.07%.
Capital: tier 1 leverage ratio of 9.26%.
Funding: loans stand at 68.98% of deposits as of Q1 2015.

Return on Assets (YTD, annualized)

0.64%+44 bps YoY

Net Interest Margin (YTD, annualized)

3.06%+10 bps YoY

Efficiency Ratio (YTD, annualized)

73.46%-1,761 bps YoY

Tier 1 Leverage Ratio

9.26%

n/a

Year to date, annualized, through each quarter.

Metric	Q2 2013	Q3 2013	Q4 2013	Q1 2014	Q2 2014	Q3 2014	Q4 2014	Q1 2015	YoY Δ	Trend
Earnings
Return on Assets	0.48%	0.42%	0.02%	0.20%	0.25%	0.31%	0.27%	0.64%	+44 bps
Return on Equity	4.85%	4.34%	0.22%	2.12%	2.72%	3.32%	2.89%	6.90%	+478 bps
Net Interest Margin	2.87%	2.81%	2.83%	2.96%	2.86%	2.81%	2.93%	3.06%	+10 bps
Efficiency Ratio	77.90%	80.50%	81.39%	91.06%	88.05%	85.42%	86.76%	73.46%	-1,761 bps
Non-Interest Burden	2.12%	2.16%	2.84%	2.65%	2.46%	2.33%	2.49%	2.16%	-49 bps
Growth
Asset Growth (YoY)	5.89%	3.14%	3.69%	2.67%	8.13%	3.24%	4.63%	10.42%	+775 bps
Loan Growth (YoY)	-4.81%	4.69%	11.06%	17.29%	19.52%	15.83%	18.13%	18.82%	+153 bps
Deposit Growth (YoY)	7.58%	4.55%	4.53%	3.99%	8.95%	3.91%	5.58%	11.53%	+755 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	0.24%	0.22%	0.19%	-0.20%	-0.08%	-0.04%	0.02%	0.07%	+27 bps
Allowance / Loans	1.75%	1.64%	1.59%	1.62%	1.54%	1.52%	1.42%	1.44%	-18 bps
Allowance Coverage of NPLs	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Capital
Tier 1 Leverage Ratio	n/a	n/a	n/a	n/a	n/a	n/a	n/a	9.26%	n/a	n/a
Total Risk-Based Capital	17.45%	16.92%	17.09%	17.16%	15.66%	15.25%	14.84%	14.89%	-227 bps
Equity / Assets	9.54%	9.45%	9.28%	9.68%	8.85%	9.13%	9.27%	9.29%	-39 bps
Liquidity & Funding
Loans / Deposits	56.36%	59.20%	61.94%	64.75%	61.83%	65.99%	69.31%	68.98%	+423 bps
Liquid Assets / Assets	26.23%	24.05%	22.26%	19.26%	14.25%	9.52%	8.41%	10.21%	-905 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a