Profits at Hudson Valley Holding Corp. in Yonkers, N.Y., plummeted 96% from a year earlier, to $300,000.
"Despite difficult times for the economy in general and the banking industry in particular, we managed to show a profit in this very challenging economic environment," James J. Landy, the $2.6 billion-asset company's president and chief executive officer, said in a press release issued Wednesday.
"While these earnings are not what they were for the same period last year or what we are used to at Hudson Valley, we, like most businesses, are not immune to market forces," he said. "We are feeling the cumulative impact of the global recession and growing unemployment, as well as the collapsing real estate markets both nationally and locally."
Hudson Valley nevertheless declared a dividend of 30 cents per share.
The two-bank holding company said it was exploring options to raise capital and expects to complete the process by yearend; it said it will announce details soon.