Working Together to Help Businesses, Individuals and Communities Succeed

CORPORATE REPORT 2011 Hudson Valley Bank—40 Years of: • Dedicated community banking • Total commitment to customers, shareholders and staff • Reinvestment in our communities • Local autonomy

very business and professional service firm has goals to maintain Eand grow their business. Since its founding in 1972, Hudson Valley Bank has been an important part of our customers’ success, whether by helping with their cash management needs or loans to expand their business and often much more, as a collaborative partner, advisor and friend. As a result, our business has grown along with our customers’ companies. We are proud of our relationship with our customers and thank them for their loyalty and for banking with us. Our success is measured by the long-term and mutually beneficial relationships we have with our customers, shareholders and staff. Other banks say they provide relationship banking, we live it every day.

About Hudson Valley Holding Corp.

udson Valley Holding Corp., headquartered in Yonkers, NY, is the parent company Hof Hudson Valley Bank (HVB). Hudson Valley Bank is a Westchester based bank with more than $2.7 billion in assets, serving the metropolitan area with 36 branches located in Westchester, Rockland, the Bronx, Manhattan and Brooklyn in New York, and Fairfield and New Haven Counties in Connecticut. HVB specializes in providing a full range of financial services to businesses, professional service firms, not-for-profit organizations and individuals; and provides investment management services through a subsidiary, A.R. Schmeidler & Co., Inc. Hudson Valley Holding Corp.’s common stock is traded on the NYSE under the ticker symbol “HVB” and is included in the Russell 3000® Index. Additional information on Hudson Valley Bank can be obtained on our web site at www.hudsonvalleybank.com. Hudson Valley Holding Corp.

“We have great confidence that the business model we have developed over the past 40 years will continue to effectively serve this Company and our customers.”

Left to right: James J. Landy, President & Chief Executive Officer, William E. Griffin, Chairman A Letter from Our Chairman and President A 40-YEAR LEGACY OF SERVICE A LOOK BACK AT THE YEAR 2012 marks Hudson Valley Bank’s 40th year of service to Over the last four decades, Hudson Valley Bank has our community. In this report, we recognize some of the successfully navigated many ups and downs in the U.S. many customers and staff members who joined us over the economy and the banking industry by focusing on those things past four decades, quite a few from our earliest days. within our control—our core, metro NY banking operations, and the relationships we have worked so hard to build. In This year we celebrate the relationships, commitment, spite of challenges resulting from a remarkably different innovation and independence that have served this Bank so banking industry than we knew 40 or even five years ago, well for four decades—and we expect these same strengths 2011 was no different. We once again demonstrated the to deliver continued success in the decades to come. continued success of our customer relationship model. It brings us great pride to look back on the disciplined growth Like many community banks, and certainly those founded to and exceptional relationships we have cultivated over the serve local businesses, our lending focus has always been years. Our Bank has grown from $10 million in assets in in commercial real estate (CRE). However, as we reported 1972 to $2.8 billion in 2011—that’s more than 15% per in February, our primary banking regulator informed us that year on a compounded annual basis. It reflects our consistent developments across the industry in recent years, changed ability to anticipate and meet the needs of our customers in its sensitivity to loan concentrations, particularly in CRE, a sustainable, profitable manner. We have witnessed the at all financial institutions they regulate. Consequently, transition of Westchester County’s business community from we responded to this new sensitivity and our regulators’ one dominated by large, corporate employers to one more concerns with a plan to reduce the Bank’s concentration diversified and service oriented. In fact, most recent U.S. in CRE and classified loans, relative to risk-based capital. census data indicates that from 1992 to 2006, the number of businesses with 20 or fewer employees in Westchester As part of this plan, the Bank will sell approximately County increased by more than 3,000, while companies with $474 million in loans by mid-2012. This is a significant greater than 100 employees have grown by less than 100. step toward reducing the Bank’s concentrations of CRE We have been pleased to serve an increasing number of these loans and classified assets to less than 400% and 25% small, service oriented businesses, along with mid-to-large-size of risk-based capital, respectively, in the near term. We companies, while also expanding beyond our Westchester roots believe this decisive plan addresses the issues raised to surrounding counties, including Rockland and New York by regulators, while allowing us to meet the financial City; and Fairfield and New Haven Counties in Connecticut. needs of our customers in every community we serve. We are at heart a community business bank. Our niche The charge related to positioning these loans for disposition commercial customers—many of whom are also shareholders— has reduced our otherwise robust earnings for both the final have been and will continue to be our foundation and our quarter and the full year of 2011 to a net loss. Naturally, we priority. We have great confidence that the business model are disappointed. However, we are confident that our efforts we have developed over the past 40 years will continue to enhance our lending model will only augment our value to effectively serve this Company and our customers. proposition over time, both to customers and shareholders. We

1 are also confident we will be in a better position to compete to collection. Our customers have come to expect cutting-edge with other banks in our markets as a result of these changes. products and exceptional service, and these investments will enable us to better meet their current and future needs. As our industry rapidly changes, so do regulatory expectations of best practices for banks of all sizes. While we tackle these We are also investing in the bricks and mortar of our challenges and adopt best practices once reserved for much Bank. In January 2012, we opened our newest office larger institutions, we are pleased to report that our core in Suffern, NY, reflecting our continued commitment relationship deposit base continues to grow, and our ample to serving our customers through a larger branch capital enables us to serve our customers and help them achieve network close to where they live and work. their financial goals. We are very much open for business. These enhancements could not translate into customer and CORE FRAnCHISE IS THRIVInG shareholder value without the outstanding talents and insights of our Directors, management, bankers, support staff and our In a year when loan demand was sidelined, our customers Business Development Board. In 2011 and early 2012, we demonstrated the value they place on our highly personalized made a number of valuable additions to our team—highly service by entrusting $2.4 billion in deposits to us in experienced talent that is complementary to the institutional 2011—8.5% more than just one year before. Coupled with knowledge of our long-tenured employee base. We were a continued low interest rate environment, this inflow of pleased to welcome John Cahill, former Chief of Staff to New deposits helped lower our funding costs and improve our net York’s Governor George Pataki and currently Counsel to interest margin to 4.60% in the fourth quarter of 2011, 31 Chadbourne and Parke, LLP, who was named to the Board basis points higher than the same quarter of 2010. Bucking of Hudson Valley Holding Corp. Vincent Palaia, a longtime the declining industry trend, this improvement helped drive member of the Hudson Valley family and experienced lending revenue growth of $12.4 million or 10.0% in 2011. officer, was named to the Hudson Valley Bank Board. Central to our strategy for creating long-term shareholder value We also added seasoned bankers to lead our efforts in is our commitment to running a highly efficient operation. In Business & Professional Banking and Not-For-Profit Banking, 2011, we delivered on this commitment by growing revenues as well as new market leaders in Connecticut. We have faster than expenses, even as we invested in the franchise, appointed more respected local leaders to our Business expanded our branch network and faced increased costs of Development Board, adding a wealth of insight and regulatory compliance. At the same time, our experienced business contacts to our already strong local network. leadership team and dedicated employees continued to deliver the highly customized and personalized service for A LOOK AHEAd which Hudson Valley Bank is known, while maintaining our Our commitment to our customers has never been stronger. long-standing reputation as one of banking’s most efficient As we grow in size and market presence, we remain operators. Our “efficiency ratio,” a standard measure for committed to our relationships and the exceptional personal financial institutions, was 57.1% in 2011, well below the service and attention we have always provided. At the median 69.3% reported by all publicly traded U.S. banks. same time, we are working on optimizing our operations, Our core customer relationships thrived in 2011, just as knowing that the smarter and more efficiently we operate, they do today. Our pre-tax, pre-provision earnings for the better we can serve our customers for years to come. the full year exceeded 2010 by a healthy 13%. In fact, Forty years ago, this Bank was founded with the mission pre-tax, pre-provision earnings were the second highest “to remain a financially strong, independent, local bank ever recorded by the Company, despite macroeconomic serving customers in select markets in ways that exceed their challenges that are unprecedented in recent history. expectations, thereby creating superior shareholder returns Dividends—both cash and stock—have also been and exceptional employee career opportunities.” We are essential to delivering our shareholder returns, which have grateful to our employees, customers and communities who historically outperformed our peers. Over the two years have allowed us to deliver on this vision for all these years. ended December 31, 2011, Hudson Valley stock returned We are confident that the changes we are initiating in our 11.1% to our shareholders, compared to 3.4% returned by 40th year, combined with the core earnings power of our the SNL U.S. Bank $1-$5B index. Dividends drove more relationship-driven franchise, our commitment to the communities than 60% of that return. In 2011, we were very pleased we serve and the value we provide to our shareholders, to announce both dividend increases and a 10% stock customers and employees, position us very well to thrive in the dividend, marking the 28th consecutive year the Bank future. We are excited about the innovation and relationships has either paid a stock dividend or declared a stock split. that will shape Hudson Valley Bank for the next 40 years.

InVESTInG In OuR FuTuRE We continue to invest in the Company for today and tomorrow. In June, we will complete an enterprise-wide core systems William E. Griffin conversion that spans the gamut of our operations, from Chairman customer interfaces to our secure data warehouse and general ledger systems. It is an extensive technology and delivery upgrade that will help increase overall efficiency, develop sustainable process improvements and manage growth. In addition, we are re-engineering our loan James J. Landy operations to streamline all processes, from origination President & Chief Executive Officer

2 Year in Review

John P. Cahill, New Holding Corp. Director John P. Cahill, former Secretary and Chief of Staff to Governor George E. Pataki, was named a Director of Hudson Valley Holding Corp. in 2011. After a distinguished career in the public sector, Mr. Cahill is currently Counsel to the law firm of Chadbourne and Parke, LLP, where he concentrates on energy and environmental issues and heads the firm’s Climate Change Practice Group. He is also co-founder of the Pataki-Cahill Group, a strategic consulting firm that focuses on the economic and policy implications of domestic energy needs.

Prior to serving as Gov. Pataki’s Chief of Staff, Mr. Cahill was the Governor’s Senior Policy Advisor and Directors and members of the Management team applaud after ringing the opening Commissioner of the Department of Environmental bell on the New York Stock Exchange on Aug. 2. Pictured from left: Adam Ifshin, Conservation (DEC). He was also a partner in Plunkett & Director; Vincent T. Palaia, EVP, Chief Lending Officer; Paul S. Ulrich, Stephen R. Brown, Jaffe, P.C., a prestigious New York law firm. EVP, Chief Credit Officer; SEVP, Chief Financial Officer & Treasurer; James J. Landy, President & Chief Executive Officer; William E. Griffin, Chairman; Angelo R. Martinelli, Director; Mary-Jane Foster, Vincent T. Palaia, New Hudson Valley Bank Director; and Frank J. Skuthan, EVP, Chief Operating Officer Director Vincent T. Palaia, a senior executive with Hudson Valley Company Moves to NYSE Bank for the past 23 years, has been elected as a On August 2, 2011, Hudson Valley Holding Corp’s common Director of the Bank. Mr. Palaia, who joined the Bank stock was transferred from the NASDAQ Global Select in 1988, has been Executive Vice President and Chief Market to the New York Stock Exchange (NYSE) trading Lending Officer since 1997. Having started his career under the new ticker symbol “HVB.” As home to many with National Bank of Westchester in 1967, he has more of the world’s finest companies, including many quality than 40 years of experience in community banking in banks, Hudson Valley moved to the NYSE to create a the New York Metropolitan area. He retains his current higher profile with analysts and to foster long-term value for position, where his knowledge and expertise in the shareholders. Members of the Board were on hand to ring credit area is vital in the current economic climate. the opening bell that morning to commemorate the move.

Left to right: Frank J. Skuthan, Executive Vice President, Chief Operating Officer; Vincent T. Palaia, Executive Vice President, Chief Lending Officer; Paul S. Ulrich, Executive Vice President, Chief Credit Officer; Stephen R. Brown, Senior Executive Vice President, Chief Financial Officer & Treasurer; Mary B. Minieri, Executive Vice President, Administration; Michael P. Maloney, Executive Vice President, Chief Banking Officer; Michael J. Gilfeather, Executive Vice President, Chief Administrative Officer

3 Dividends Declared Under the Federal Home Loan Bank System’s Affordable Housing Program (AHP), competing projects must be For the 28th consecutive year, Hudson Valley Holding sponsored by a financial organization that is a member of the Corp. declared a stock dividend or stock split. The Board Federal Home Loan Bank in partnership with a community- of Directors declared a 10% common stock dividend for based sponsoring organization. Hudson Valley was the shareholders of record as of close of business on November sponsor for Hope Community’s two successful grant requests. 23, 2011. In 2011, the Company also paid cash dividends of $0.70 per share. Both the 2011 stock and cash “Hudson Valley is proud to be a part of this vital project dividends reflect the Board’s confidence in the Company’s to assure affordable housing for the residents of East performance, progress of its credit quality improvement Harlem,” said James J. Landy, President & CEO of Hudson efforts and commitment to returning equity to shareholders. Valley Bank. “Since our founding almost 40 years ago, we have been committed to giving back to the community Hudson Valley Expands in Rockland County through loans to help businesses grow and not-for-profits Hudson Valley Bank has opened its second branch in succeed, as well as through our corporate citizenship and Rockland County. Located in Suffern at 4 Executive philanthropy.” In its 41-year history, Hope Community has Blvd., off Airmont Road and convenient to Route 59, this created and preserved more than 1,300 units of rental and full-service branch is designed with no teller lines for a ownership housing affordable for low and moderate income private banking experience. The branch will focus on families in 74 Hope-managed buildings in East Harlem. serving the deposit, lending and investment needs of businesses and professionals, as well as individuals, in Hudson Valley National Foundation Suffern and surrounding communities. Anthony J. Doherty, Organizations serving children with special needs was an experienced local banker, is Vice President and the special focus of Hudson Valley National Foundation’s Branch Manager, and along with his staff, will provide annual distribution in 2011. With proceeds raised from the exceptional personal service and attention customers its three golf outings, Tennis for Charity Night and Night can expect from Hudson Valley Bank. Our first Rockland at the Races, the Foundation was able to award almost Branch is located at 254 South Main Street in New City. $200,000 in grants to hundreds of local organizations. Of that, nearly $50,000 was designated for organizations Supporting Affordable Housing providing education, healthcare and other supportive Hudson Valley Bank partnered with Hope Community Inc., services for children facing physical and developmental one of the largest community housing organizations in New challenges. “We are very proud of our involvement York City, to obtain grants from the Federal Home Loan Bank in and for the cities, towns and neighborhoods to renovate and preserve affordable housing in Harlem.

Anthony J. Doherty VP & Branch Manager

Left: Our new Suffern Branch offers a private banking experience with no teller lines.

4 online banking,billpaymentand e-statements.It’stime!! mail. Askyourlocalbranchhow youcansignupforinstant available. Nomorewaitingfor statementstoarriveinthe to viewactivityorreconcilebalancesassoontheyare access totheirbusinessandpersonalstatementsonline prescribed schedule.Onlinebankingcustomersalsohave one atatime,allonce,orautomaticallyyour HVB BillPay,youcanpayyourbillsatconvenience, Paying billshasneverbeeneasierormoreconvenient.With online bankingoffersmanyofthesameconveniences. convenience ofyourofficeorhome24hoursaday.Personal originate ACHtransactionsorwiretransfers—allfromthe make loanpayments,printaccountreports,paytaxesand can monitoryouraccount,checkbalances,transferfunds, online bankingservice.Withbusinessbanking,you your accountinformationwithourbusinessandpersonal for yourbankingneeds.Youcangetinstantdeliveryof costs, HudsonValleyoffersseveralconvenientalternatives result inslowerandlessreliableservice,aswellhigher With expectedcutsattheU.S.PostalServicethatmay P can helpmakeadifferenceinourcommunities.” and supportsourevents.ThroughFoundation,we “We aregratefultoeveryonewhoparticipatesin we serve,”saidJimLandy,PresidentoftheFoundation. Evola, AVP&EastHarlemBranchManager,HudsonValleyBank C. Iammatteo,ChiefFinancialOfficer,HopeCommunity;Jean Alfred DelliBovi,President&CEO,FederalHomeLoanBank;Marie Valley Bank;WalterRoberts,ExecutiveDirector,HopeCommunity; Hudson ValleyBank;JamesJ.Landy,President&CEO, Left toright:JohnMurphy,VicePresident,RelationshipManager, ay

bills

o n li n e … it ’ s

ti m e 10714.286133 14285.714844 17857.143555 21428.572266 3571.428711 7142.857422 0.000000 125862 167816 209770 251724 293678 41954 83908 0 * supplementary datacontained intheCompany’s2011AnnualReporton Form10-K. These financialhighlights shouldbereadinconjunctionwiththeFinancial Statementsand ** Adjustedfortheeffectsofsubsequent10%stock dividends. Diluted (Loss)Earnings Basic (Loss)Earnings Equity Deposits Loans (net) Total Assets Return onAverageAssets Return onAdjustedAverageEquity* Return onAverageEquity Average Equity Average Assets Net (Loss)Income Net InterestIncome Fiscal (Thousands, exceptsharedata) Financial Highlights Book Value Per Share** Interest Expense Interest Income  Excludes theeffectsofunrealizedgains,nettax, $1,229 in2011and$3,0782010,on sale whichwereprimarilyasaresultofchangesininterest rates. have notresultedinsignificantrealizationoftemporary marketgainsorlossesonsecuritiesavailablefor performance, asitismoreconsistentwiththeCompany’s asset/liabilitymanagementstrategies,which securities availableforsale.Managementbelievesthis alternatepresentationmorecloselyreflectsactual 20 20 20 00 2011 2010 2009 2008 2007 20 20 20 00 2011 2010 2009 2008 2007

Year EndedDecember31, $34,483 $203,687 Net

(in thousands) (in

(in thousands)

$207,501 $30,877 (Loss) Equity

$19,012 Income $293,678

$289,917 $5,113 $(

2, 13

$277,562 7)

$1,541,405 $2,425,282 $2,797,670 $ 277,562 $ 117,859 $ 297,488 $ 128,617 $ $ 10,758 $ 2,808,292

20 20 20 00 2011 2010 2009 2008 2007 2011 2010 2009 2008 2007

$14.22 $ $ $2.31 (2,137)

Diluted 17.61% 2011 (0.11) (0.11) (0.08)% (0.72)% (0.72)% per Common Share** Common per Return on Adjusted Return AverageEquity* $2.06 14.55% (Loss)

$1.24 8.78% $2,234,412 $1,689,187 $2,669,033 $2,802,856 $ 289,917 $ 292,350 $ 110,656 $ 128,339 $ 17,683 $ 5,113 Earnings

$0.26 $14.92 $14.92 1.77% $ 0.26 $ 0.26 (0 $( 2010 .7 0. 0.18% 1.77% 1.75% 11 2)

% ) 5

10.61144 13.26430 15.91716 0.000000 0.357143 0.714286 1.071429 1.428572 1.785715 2.142858 0.00000 2.65286 5.30572 7.95858

1970s Dedicated “ Our commitment Community to our customers and the communities Banking we serve has only strengthened udson Valley Bank’s founding philosophy of local over the past four Hbanking for the local community has not changed in its 40-year history. The Bank was founded in 1972 by a group decades.” of prominent Yonkers business leaders who believed there was a need for a local bank with local influence and local responsiveness, at a time when big banks were taking over homegrown banks. While Hudson Valley has expanded in size and scope and is a much more diversified bank, our commitment to our customers and the communities we serve has only strengthened over the past four decades.

THE HudSOn VALLEY dIFFEREnCE • Direct access to executive management, including the Bank President • Flexibility and fast turnaround from locally based decision makers • Exceptional personal service and attention • Innovative and comprehensive banking products • Understanding of the marketplace and business climate

Left to right: George Chesmar First VP, Technology Mary Fitzgerald AVP, Branch Internal Review Specialist Pat Plonchak SVP, Technology Director

6 1980s Total Commitment “ Hudson Valley Bank to Customers, is a relationship based bank that Shareholders prides itself on developing and and Staff maintaining long- term relationships hat truly distinguishes Hudson Valley Bank is our with all of our Wuncommon dedication to the banking needs of our customers, to providing value for shareholders and to creating constituents.” opportunities and a supportive working environment for our staff. Hudson Valley Bank is a relationship based bank that prides itself on developing and maintaining long-term relationships with all of our constituents. The effectiveness of this strategy is evident in the many loyal customers, shareholders and staff who have been with us from the very beginning and who have contributed to our growth and success over the years.

ExPECT mORE • Customers can expect personal contact, responsiveness, innovative thinking and a consultative approach to their business banking. • Shareholders can expect that their interests will be given priority in management decisions and actions to help maximize their return on investment. • Staff can expect career development initiatives, competitive compensation and benefits packages, training programs and an atmosphere that values teamwork, integrity, respect and excellence.

Left to right: Patty Marlow SVP, Yonkers Area Branch Manager Debbie Guzman SVP, Branch & Deposit Operations Maria Ingani First VP, Technology

7 1990s Reinvestment “ All of our loans in Our are made within our market area, Communities which helps spur growth in local udson Valley Bank is a highly respected corporate citizen communities.” Hwith a long tradition of reinvesting in the communities we serve through loans, charitable support and the countless hours of volunteer time donated by the staff. All of our loans are made within our market area, which helps spur growth in local communities. Hudson Valley actively participates in and contributes to the cities, towns and neighborhoods we serve.

A RESPECTEd CORPORATE CITIZEn • Loans to local businesses and not-for-profits for renovation, improvement and expansion • Collaborative partnerships to foster financial success for businesses • Active participation and leadership of Bank staff in local organizations • Sponsorship of local civic and philanthropic events and projects • Charitable grants from the Hudson Valley National Foundation

Left to right: Yvonne Williams AVP, Loan Operations Carlos Alonzo VP, Facilities and Property Manager Linda J. Carrington First VP, Mount Kisco Branch Manager Robin Alrabaa AVP, Main Branch Manager

8 2000s Local “ We tailor our Autonomy services to meet the banking udson Valley Bank retains its firm commitment to needs of our Hremaining independent. Unlike most mega banks, local ownership and management give us the flexibility to provide customers, which the kind of service and attention sacrificed by many banks in has been integral this era of mergers and acquisitions. We tailor our services to meet the banking needs of our customers, which has been to our success for integral to our success for more than 40 years. more than 40 years.” THE SIGnIFICAnT BEnEFITS • A financially strong, independent community bank • Locally owned and managed • No 800 numbers or call centers • Speak to actual local bankers, who can help • A bank that is small enough to know your name, but large enough to meet your banking needs

Left to right: Larry J. McElroen, First VP, Legal Services John P. Bartolotta, First SVP, Business & Professional Banking Tom Goff, Junior Relationship Manager Joseph A. Ruhl, First SVP, Legal Services Andy Reinhart, First SVP, Controller Cathy Bacon, Receptionist Elias Lopez-Reyes, VP, Senior Product Manager 1972

1982 1975 1992

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2012 Saint Joseph’s Medical Center

Michael J. Spicer, President & CEO, Saint Joseph’s Medical Center

10 “ Other banks would take months to put deals like Saint Vincent’s together. Because of the hospital’s long-standing relationship with Hudson Valley, things can happen much more quickly.” — Michael J. Spicer

Hudson Valley Bank George Elferink, SVP, Investment & Trust Lynn Bagliebter, First SVP, Community Segment

major medical center providing comprehensive care to alone number close to one million every year. And with plans for A individuals and families throughout the region has evolved an outpatient cardiovascular center this fall, it is still growing. from a small hospital on a hilltop in downtown Yonkers. “Our mission has not changed,” Mike said. “We consistently Saint Joseph’s Medical Center, which was founded in 1888 by reach out to the community to meet the ever changing the Sisters of Charity of St. Vincent DePaul of New York, will healthcare needs of a diverse population with quality care, celebrate its 125th anniversary in 2013. A lot has changed dignity and respect. We are proud of our role as a major in medicine and at St. Joseph’s since those early days. healthcare provider and to carry on the caring traditions of the Sisters of Charity to serve the poor and all in need.” Saint Joseph’s Medical Center is comprised of a 194-bed acute care hospital, 200-bed nursing home, Family Health Center, “As the hospital grew, Hudson Valley Bank has been two senior housing buildings, extensive behavioral health there every step of the way,” Mike explained, “from services, and much more. providing financing for small projects to playing a major role in the acquisition of St. Vincent’s.” When St. Vincent’s Catholic Medical Centers of New York closed in 2010, Saint Joseph’s purchased St. Vincent’s in Harrison Saint Joseph’s has benefitted from many of the Bank’s products to expand its existing behavioral health services and to assure and services over the years; from lines of credit to meet their continuity of care for St. Vincent’s patients and the community. With financial obligations to professional investment management the addition of the St. Vincent’s campus, a 138-bed psychiatric of endowment and fundraising contributions, to equipment hospital, and its satellite clinics throughout Westchester and the five leasing to acquire today’s latest medical technology. boroughs of New York, Saint Joseph’s is now one of the largest The Bank is currently providing a term loan for the purchase of a providers of behavioral healthcare services in New York State. new air conditioning system for the hospital and nursing home. “Throughout Saint Joseph’s history, if we saw a need in the Hudson Valley Bank and Saint Joseph’s have grown together. community we filled it,” according to Michael J. Spicer, “The relationship we have with the Bank would be the envy President & CEO. of any business,” Mike said. “Other banks would take In 1984, Saint Joseph’s partnered with New York Medical months to put deals like Saint Vincent’s together. Because of College to establish the first Family Medicine Residency Program the hospital’s long-standing relationship with Hudson Valley, in Westchester County. For almost three decades, the Residency things can happen much more quickly. We can reach out Program has graduated hundreds of family medicine physicians to senior management at any time to ask for assistance and who practice in Yonkers, throughout the United States and abroad. involve them as part of the planning process to help assure the financial success of the project, regardless of its size.” Saint Joseph’s also developed comprehensive geriatric services to meet the needs of older adults, including its skilled nursing “Above all, it is the customer service and personal attention from facility, short and long-term rehabilitative care, home care every level of the Bank, from the tellers on up, that has kept the and adult day care, as well as affordable senior housing. hospital with Hudson Valley for almost four decades,” Mike noted.

With some 40,000 visits annually, its Emergency Room is one “It is nice to know our bankers are only a phone call away.” of the busiest in the County. Saint Joseph’s total outpatient visits

11 1972

1982 1984 1992

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2012 Acacia Network, Inc.

Left to right: Raul Russi Chief Executive Officer Milagros Baez O’Toole Chairwoman Tomas Del Rio Chief Financial Officer

12 “ Our banking relationship has been more like a business partnership. Hudson Valley took time to understand our business, our challenges and financial needs, and provided solutions.”

— Raul Russi

Hudson Valley Bank Left to right: Millie Rosado, AVP, “HUB” Branch Manager JoAnn LoFrisco, VP, Community Segment

cacia Network, Inc., formerly known as BASICS/ functions, including human resources, finance, purchasing and A Promesa Systems, Inc., is the umbrella organization fundraising, according to Raul Russi, Chief Executive Officer. for several community organizations working “As a result, we can put more dollars into serving our clients.” together to promote healthy and prosperous living for Acacia serves more than 10,000 people monthly throughout the individuals and families in the Bronx and beyond. metropolitan area and employs approximately 1,500 full and The goal of the network is to improve neighborhoods and the part-time staff. “We are a major service provider and in a position quality of life for vulnerable populations, especially among to be a strong advocate for our constituents,” Raul noted. “Each the Latino community. Among the organizations included organization has retained its independence, its leadership and in the Acacia Network are Promesa, BASICS, East Harlem its boards, and we remain rooted in the community,” he said. Council for Community Improvement, South Bronx Community Hudson Valley Bank has been instrumental in Acacia’s Management Corporation and United Bronx Parents. growth. ”Our banking relationship has been more like Promesa has played a leadership role in serving the under- a business partnership,” Raul said. “Hudson Valley served in the Bronx since 1969. Promesa is a multifaceted took time to understand our business, our challenges Community Development Corporation helping residents and financial needs, and provided solutions.” become healthy, self-sufficient citizens with housing and Most recently, the Bank provided financing for the East economic development programs, along with primary Harlem Council for Community Improvement to acquire healthcare, mental health and substance abuse services. and renovate a group home to foster independent BASICS has offered a variety of supportive services, living for people with developmental disabilities. including transitional housing for homeless families and The Bank has been a trusted advisor on managing cash flow individuals, comprehensive behavioral healthcare and and planning funding for a number of new projects and primary healthcare since 1996 in an effort to foster recovery initiatives. In addition to maintaining operating accounts for and self-sufficiency for individuals and families. some of Acacia’s organizations, Hudson Valley has provided Founded in 1979, the East Harlem Council for Community BASICS and East Harlem Council for Community Improvement Improvement offers supervised and supported housing with financing for working capital purposes, as well as and vocational services, as well as after school construction and mortgage loans. “These services keep us programs for children, among other services. steady and able to move forward,” Raul explained. “The Bank also regularly supports our fundraising activities,” he said. New to the network are South Bronx Community Management Corporation, providing affordable and supportive housing Raul really appreciates the level of service Hudson Valley provides. services, and United Bronx Parents, an organization offering “I can interact with the leadership and call a senior officer or even an array of services, specifically to women with children. the President of the Bank and get a response right away. We know we are important to Hudson Valley. At a large bank, we Acacia Network can provide a seamless system of service delivery, are barely visible. It is how a banking relationship should be.” in addition to creating cost savings by centralizing administrative

13 1972

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2012 Maxx Properties

Left to right: David R. Wiener Managing Director Andrew R. Wiener Managing Director Robert R. Wiener Chairman & Chief Executive Officer Eric R. Wiener Managing Director

14 “ Unlike big banks that grew or merged, Hudson Valley has stayed true to its original philosophy and purpose.” — Marc Samplin

Hudson Valley Bank Moira Kiernan, First VP, White Plains Central Avenue Branch Manager Vinny Palaia, EVP, Chief Lending Officer

n 2011, MAXX Properties, a fourth generation family- President and Chief Financial Officer, “and we provide Iowned real estate company, celebrated its 75th outstanding customer service, which is what distinguishes us anniversary of buying, managing and improving apartment from other multi-family owners and managers. Our goal has buildings for middle class families across the country. always been to manage ‘the best building on the blockTM’.”

The company has come a long way since 1936, when MAXX considers its residents, contractors and staff (many long- Max Wiener, an immigrant furrier, and his son, Ralph, a timers and some second generation) to be its extended family. first generation college graduate and lawyer, purchased “We are a neighborhood-based family company,” Bob said. their first 48-unit apartment building in Brooklyn. “Hudson Valley Bank is a lot like us—an independent, homegrown The company currently owns 42 rental apartment buildings in bank that has retained its local, family-friendly feel,” Marc said. seven states: Florida, Maryland, Arizona, Colorado, Nebraska and “Unlike big banks that grew or merged, Hudson Valley has Nevada, as well as three rental properties, three office buildings stayed true to its original philosophy and purpose.” and 51 co-op apartment buildings in New York. Consistent That personal relationship is important to MAXX Properties. with their philosophy of long-term ownership and commitment, Hudson Valley has provided first mortgages on a variety MAXX Properties still manages their original Brooklyn building. of their buildings. A line of credit has also enabled them The company is now managed by the third and fourth to make timely capital improvements to their properties. generations of the family. Ralph’s son, Robert Wiener, who “Hudson Valley has been a wonderful resource for us took over the reins in 1986, is currently Chairman. He has as we have grown our business,” Marc said. been joined by his three sons, Eric, David and Andrew, MAXX Properties relies on Hudson Valley’s comprehensive Lockbox and together, they provide homes for more than 28,000 services to help them manage payments from their many residents. people and employ a staff of 450 full-time employees and According to Marc, “The Bank’s cash management services up to 1,000 contract professionals. Sixty-five employees are terrific and obviously important in our type of business.” work out of their company headquarters in Harrison, NY. They also enjoy attending Bank-sponsored events, which Ralph, whose business strategy was not to buy anything provide an opportunity to strengthen their banking more than an hour’s drive away from the office, would be relationships and network with other business owners. “It impressed with the successful expansion of the business. “As is the personal relationships and responsiveness that really we grew, we wanted to diversify our holdings and broaden distinguish Hudson Valley from other banks,” Marc said. our opportunities and geographic base,” Bob explained. The plan has worked well and has opened new opportunities “We have developed great friendships with Hudson Valley over for the next generations. With his 15 grandchildren, the fifth the years,” Bob added. “We feel like a part of their family.” generation of this thriving family business should be assured.

Not a company to stand still, MAXX Properties looks to the future. “We believe in investing in quality properties for the long term,” according to Marc Samplin, Executive Vice

15 1972

1982 1990 1992

2002

2012 Verco Properties, LLC

Left to right: John Verni, Principal Vito Verni, Chairman Christopher Verni, Principal

16 “ When it comes to crunch time on the acquisition of a new property in the fast paced and competitive New York real estate market, Hudson Valley gives us the personal attention we need to move quickly and close the deal.” — John Verni

Hudson Valley Bank Anthony Mormile, SVP, Relationship Manager Sue Sacco, VP, McLean Avenue Branch Manager

erco Properties, LLC, is a third-generation real 1888, the historic station is the second oldest station on V estate investment, development and management the New Haven line. The former station building will soon company. Starting with a small family-owned grocery be home to a first-class restaurant on the ground level and store in the Gracie Mansion area of the Upper East Side office suites on a new second floor. Verco Properties is in New York City, the Verni family began acquiring relocating its own offices to this exciting new space. and renovating buildings and today owns and operates Vito, John and Chris have several other projects in the a portfolio of over 50 multi-family and mixed-use planning stage, including the renovation of the old movie properties in Manhattan, the Bronx and Westchester. theater in Harrison and another building on the Upper East The Verni family specializes in the acquisition, renovation Side. According to Chris, the projects they most enjoy are and adaptive reuse of older and sometimes historic taking long neglected properties, breathing new life into buildings for residential and commercial use. Many of them and repositioning them as assets to the community. their properties are located in trendy and desirable areas The company has a long history with Hudson Valley Bank, which of the city, including the Upper East Side, Chelsea, SoHo, has been there for them throughout their expansion. “Hudson Greenwich Village, Gramercy Park and the Lower East Side. Valley provides us state-of-the-art online cash management Founder Giovanni Verni came through Ellis Island in tools, as well as exceptional personal service,” John said. 1927 and like many immigrants, worked various jobs “With over 50 properties and hundreds of residential to support his family. After a time, he started a grocery and commercial tenants, keeping track of our rent business and eventually bought a building to house his receipts is vital to us,” Chris added. “Hudson Valley grocery business and his family. That investment was the helps us track our rent receipts on a daily basis and beginning of the Verni family’s real estate business. calls us personally whenever there is a problem.”

In the 1960s, Giovanni’s son, Vito, turned their focus exclusively Online banking allows them to pay recurring to real estate. They formed a real estate investment company monthly expenses automatically from their more and over the next 50 years their portfolio grew substantially. than 30 operating accounts at Hudson Valley. Vito has now retired to a more advisory role and the day-to-day “When it comes to crunch time on the acquisition of a new operation is overseen by Vito’s sons, John and Christopher Verni. property in the fast paced and competitive New York real John, an attorney, handles most of the acquisitions, financing and estate market, Hudson Valley gives us the personal attention approvals for new additions to the portfolio. Chris handles most we need to move quickly and close the deal,” John noted. of the leasing, renovations and management operations related to the properties. They work together to upgrade their portfolio In summarizing their banking relationship, Vito and search for new opportunities to expand their holdings. explained, “What truly sets Hudson Valley apart is the personal attention. The people we deal with are Verco Properties is presently completing the extensive so much more than our bankers. They are friends who renovation of the old Mamaroneck Train Station, which understand our business and help us succeed.” the company purchased from the MTA in 2008. Built in

17 1972

1982 1996 1992

2002

2012 Caton Park Nursing Home

Left to right: Dr. Isaac Madeb Medical Director, Caton Park & Rockaway Michael Melnicke Owner Roxana Roach Administrator, Caton Park

18 Hudson Valley Holding Corp.

“ At Hudson Valley, I feel like I am wanted and part of the Bank. Hudson Valley treats its customers like I care for my residents with courtesy, respect and devotion.”

— Michael Melnicke

Hudson Valley Bank Left to right: John J. Murphy, VP, Relationship Manager Will Rivera, Brooklyn Operations Manager Lindsay Carden, AVP, Lake Avenue Branch Manager

ichael Melnicke, who owns five nursing homes throughout In return, Michael is also committed to his staff, most of Mthe metropolitan area, is carrying on a family tradition. whom have been with him for many years, providing Both his father and father-in-law were nursing home proprietors. the training, tools and support they need to improve the lives of their residents. “We work as a family and respect Michael acquired his first nursing home, Caton Park in Brooklyn, each other to create a safe, homelike environment for our a 119-bed Medicare certified facility, in 1983. Today, he residents,” he said. “With God’s help, we succeed.” owns Caton Park, as well as Rockaway Care Center and Park Care in the Rockaways, Hempstead Nursing Center in Nassau In 1992, Michael took over Regency Extended Care Center in County and Regency Extended Care Center in Yonkers, all Yonkers, one of the largest nursing homes in Westchester County, major providers and employers in the communities they serve. and experienced the difficulties of dealing with a large bank that did not understand his business. Soon after, he was introduced His facilities provide comprehensive long-term care for those who to Hudson Valley Bank. “Hudson Valley was there when I need a skilled nursing facility, as well as short-term rehabilitation needed them, which is something I will never forget,” he said. for patients transitioning from acute care hospitals. He is extremely proud of the quality of care his facilities provide, a standard that Over the years, Regency and Michael’s other facilities have he said is evident in the many 4 and 5 star ratings awarded by been able to turn to the Bank for working capital lines of the New York State Department of Health. According to Michael, credit, term loans for equipment and patient need accounts the specialty units for patients on respirators available at several and other banking services, like remote deposit. The Bank has of his facilities have a strong record of successfully weaning also provided commercial mortgages to help the Melnicke patients from ventilators, enabling them in some cases to return family acquire some of the facilities that were leased. to their homes and families. He is in the process of adding “With nursing home reimbursement today, you need a good bank additional “vent” units and three new dialysis units to his network. to help you,” Michael said. “Hudson Valley has been a partner in “We strive to provide the best care humanly possible for our endeavors. We can sit down with our Hudson Valley banker our residents,” Michael said. “We evaluate each individual who will listen to our challenges and come up with a solution.” resident and provide whatever care and/or specialized This personal relationship is important to him. “From Lynn equipment they need to make them comfortable and Bagliebter, our Relationship Manager, to Jim Landy, the provide them with the best possible quality of life.” President of the Bank, the staff is second to none,” he He believes that the residents of his nursing homes deserve to said. “At Hudson Valley, I feel like I am wanted and part be treated with respect and dignity, especially those in the last of the Bank. Hudson Valley treats its customers like I care days of their lives, who have given so much to society. “My motto for my residents with courtesy, respect and devotion.” is the three Cs: compassion, caring and courtesy,” he said.

He attributes the success and reputation of his nursing homes to his highly knowledgeable and devoted staff representing every medical specialty. “Each individual, from maintenance and housekeeping to dieticians and physicians, is committed to assuring that our residents receive high quality care.”

19 1972

1982 2004 1992

2002

2012 Andrew N. Cutler, Esq.

Andrew N. Cutler, Esq.

20 “ They noticed unusual activity that might have gone undetected for months at another bank. I know Hudson Valley is on my side.” — Andy Cutler

Hudson Valley Bank Ron J. Sylvestri, SVP, Regional Manager, Business & Professional Banking Arlene DeBenedictis, First VP, NYC Area Branch Manager

or the past 27 years, Andy Cutler, Esq., has specialized It is the feeling of a job well done and the satisfaction of Fin residential real estate law representing both buyers his clients that Andy finds rewarding and will keep him and sellers; ranging from first time owners to Wall Street closing real estate deals for many years to come. executives and high profile celebrities, in everything Like his practice, “Hudson Valley Bank is all about service,” from modest to multi-million dollar transactions. he said, “from picking up a deposit to delivering important While he focuses on high end properties, he covers the checks.” In his high volume transactional practice, he whole spectrum in his busy practice. He closes on hundreds appreciates the Bank’s responsive and knowledgeable staff. of properties every year, mostly in Manhattan where he is With frequent closings, he regularly wires funds in and out of based, but also throughout the metropolitan area, including the Bank. The efficiency of the service and the staff helps him Westchester and Long Island. He became a “closing expert” to be prepared for closings, he said. “We work together.” working his first job out of Quinnipiac Law School for a firm that specialized in co-op conversions, he said. “There is always someone to call and always someone to talk to. At bigger banks,” he noted, “you never speak to the same He has since worked for a number of firms, and is currently person twice and can wait on long lines for a signature to be a partner with Cutler Minikes & Adelman, LLP, in New York verified, because unlike Hudson Valley they don’t know you. City, where he has been for the past 13 years, providing Hudson Valley is user friendly,” he added. “They do a great job.” primarily residential real estate experience. Jonathan Minikes specializes in landlord/tenant matters, while Richard Adelman A Hudson Valley employee familiar with him and his practice concentrates on representing real estate owners with condominium was able to catch and stop fraud on his account. “They and co-op offerings in the New York Metropolitan area. noticed unusual activity that might have gone undetected for months at another bank,” he said. “I know Hudson Andy recognizes that first time home buyers are different than Valley is on my side. I am their biggest cheerleader and large developers and prides himself on being responsive to all frequently refer friends and colleagues to the Bank.” of his clients and helping to shepherd them through the process. “I am always available to answer questions,” he said.

Seasoned, as well as inexperienced, buyers and sellers can count on his knowledge and experience to help expedite the project and make sure it is done right. “When people hire me, they get me,” he explained, “not an assistant or paralegal. This is what I do; even if it means early mornings, late nights or weekends.”

As a result, he has many repeat clients who appreciate his work on their behalf, and is well respected in the field. He was formerly active as a speaker at seminars and conferences for brokers, business associations and other real estate attorneys.

21 1972

1982 2008 1992

2002

2012 National Re/Sources

Left to right: Dan Burton Director of Construction Joseph Cotter Principal Paul Janos Director of Sales

22 “ We can turn to Hudson Valley for advice and feedback to plan our projects and develop strategies to accomplish what we need to accomplish.”

— Joseph Cotter

Hudson Valley Bank Left to right: Virginia Turnbull, First VP, Relationship Manager, CT John Grassi, VP, Greenwich Branch Manager Nick Mucilli, First SVP, Cash Management

ational Re/Sources’ unique waterfront developments are visible In Yonkers, National Re/Sources developed the former Otis Nfrom the Hudson River in Edgewater, NJ to Tarrytown, NY. Elevator property into an iPark, where Kawasaki now makes rail cars shipped throughout the world, and which serves Headquartered in Greenwich, CT, the company is a major as an incubator for a number of biotech companies. developer of luxury waterfront properties consisting of condominiums, townhouses and rental apartments, and innovative “We are proud of our projects,” Joe said. “It is rewarding mixed use “iParks,” as well as commercial and retail space. to reclaim unused properties and restore them to create useable, walkable vibrant communities.” With four new Joseph Cotter and Lynne Ward, the company’s partners, started projects planned over the next three years, “The best is yet 25 years ago with a 36-home luxury sub-division in Danbury, CT. to come,” he said. “We are excited about the future.” Today, Joe explained, they primarily invest in former industrial areas and transform them into high-end living and retail space Joe credits Hudson Valley Bank for a lot of their recent success. using authentic, energy-efficient and sustainable products. “Hudson Valley has been there for us, especially during the recent National Re/Sources, which owns and manages its financial crisis,” he said. The Bank is providing construction properties, has locations throughout the metropolitan area, financing for Hudson Harbor and the 22,000 square foot as well as Maine, Florida, Michigan and Georgia. The HomeGoods store being built in Edgewater. Previously, the company has redeveloped more than $1 billion in projects, Bank provided financing for the new Borough Hall for the City including one mile of waterfront on the Hudson. of Edgewater located on the NJ site and permanent financing for several properties owned by National Re/Sources. Hudson Harbor in Tarrytown, a current National Re/Sources project, is just north of the Tappan Zee Bridge on the site The Bank also helped National Re/Sources modernize of the former headquarters of County Asphalt. It is a 250- their internal cash management system with state-of-the- unit residential complex with five very distinct communities. art Lockbox services for payment processing and online Each has its own signature architecture inspired by the great banking for ACH file origination and wire transfers. estates of the Hudson Valley, like nearby Lyndhurst and Over the years, the relationship developed beyond traditional Rockefeller estates in Pocantico Hills, Joe explained. banking. “We can turn to Hudson Valley for advice and feedback The traditional exteriors of the buildings are combined with to plan our projects and develop strategies to accomplish what modern interior design. “We try to maximize the direct we need to accomplish,” Joe explained. “They take a real interest water views with large windows and a lot of light for a very in what we do, which is important to a company like ours. With exciting lifestyle experience,” Joe said. The first phase of Hudson Valley as our bank, we can concentrate on what we Hudson Harbor, which boasts 1-to-4 bedroom units, is sold like to do, developing projects and building great buildings.” out and Phase 2 is 50 percent sold. The third of this multi- While National Re/Sources could bank anywhere, Joe phased project is just breaking ground; 28 townhomes to noted that he would much rather bank with a bank he be known as the “Carriage Houses at Hudson Harbor.” can depend on and trust, than shop around. “Like most Edgewater Harbor in Edgewater, NJ includes 500 units of things in life, it is really about the people. We have a luxury residential rental and for sale condominiums with great relationship with the people at Hudson Valley.” stunning views of the New York City skyline. This project also includes 150,000 square feet of retail space anchored by HomeGoods and several other major retailers.

23 1972

1982 2009 1992

2002

2012 Bayonne Golf Club

Eric Bergstol, Owner

24 “The people are great to work with; very professional, helpful and responsive, and they understand the market and the business environment.”

— Eric Bergstol

Hudson Valley Bank Left to right: Larry D. Stewart, First SVP, Business Development Greg Sousa, First VP, New City Branch Manager

cclaimed for its views, as well as its distinct natural layout, and the views, as well as the welcoming, comfortable and Aunique amenities and exclusivity, Bayonne Golf Club in New intimate feel of the club, Eric said. “The aesthetics are rich Jersey is considered one of the top private golf clubs in the country. and warm and the staff is like family,” he added.

Overlooking the Hudson River with dramatic panoramic views The club also offers amenities very few others offer, including of New York Harbor, the skyline and the Statue of Liberty, a converted water taxi to transport members across the river, Bayonne Golf Club is only a short boat ride from Wall Street, a helipad and concierge type services for guests to visit New but has its roots in the traditional links courses of Scotland York City hotels, restaurants and attractions. It is no wonder and Ireland. In keeping with its unique location, the main golfers come from all over the world to play at Bayonne. feature of the stately clubhouse is an 80-foot tall lighthouse. Eric himself would rather design and build a golf course than The 71-par, 7,160-yard course was designed and developed play, he said. “I love the creating, the challenge of going by owner Eric Bergstol, whose company Empire Golf through the process.” Management headquartered in Pomona, NY, currently owns Hudson Valley is the perfect bank for him, he said. “It has become and operates five clubs in the metropolitan area, including the community bank for businesses in Westchester and Rockland.” Minisceongo in New York and New Jersey National Golf Club, Pine Barrens and Twisted Dunes in New Jersey. “The people are great to work with; very professional, helpful and responsive, and they understand the market and the business Because of its location, building Bayonne Golf Club was a environment. Unlike bigger banks,” he said, “I can talk directly major engineering and design challenge, according to Eric; to decision makers and they know who I am and want to know one that required bringing in seven million yards of dirt. “It me. Hudson Valley is clearly a relationship-driven bank that was unique to the golf world.” Add the monumental challenge develops mutually beneficial relationships with its customers.” of obtaining regulatory approvals and a less determined developer might have been deterred over the course of the Hudson Valley is presently providing Eric with mortgage ten years it took to complete. Today, Bayonne, which opened financing for the Bayonne Golf Club, as well as cash in 2006, is a world class club that has been ranked 13th in management services for all of his golf properties. the United States by readers of Golf World Magazine. “Hudson Valley is unique,” Eric noted. “Not many banks Eric describes the course as “built to look intimidating, but today cater to the needs of businesses like mine. We are really play fair” with large greens and fairways and a balance of happy we were introduced to the Hudson Valley family.” long and short holes, left and right doglegs. “Like traditional When the economy picks up, Eric has additional plans for his links golf, the constant breezes from the water make it fun business. “We are excited about the future and will no doubt and interesting to play,” he said. “You can play the course turn to Hudson Valley to help make those plans a reality.” 100 times and it will play differently every time.”

Its 320 members, a Who’s Who of prominent and distinguished leaders from the worlds of real estate, politics, business and sports, are drawn to Bayonne for the golf

25 Hudson Valley Holding Corp. Board of Directors

Seated front row. Left to right: Craig S. Thompson Adam Ifshin Mary-Jane Foster William E. Griffin Angelo R. Martinelli John A. Pratt Jr.

Standing back row. Left to right: Michael P. Maloney James J. Landy Stephen R. Brown Cecile D. Singer John P. Cahill Gregory F. Holcombe

26 Boards of Directors

Hudson Valley Holding Corp. Hudson Valley Bank A.R. Schmeidler & Co., Inc. William E. Griffin William E. Griffin Arnold R. Schmeidler Chairman Chairman Chairman President President Stephen R. Burke Griffin, Coogan, Griffin, Coogan, Blose & Sulzer, P.C. President & Blose & Sulzer, P.C. Chief Executive Officer

James J. Landy James J. Landy President & Stephen R. Brown President & Chief Executive Officer Senior Executive Vice President, Chief Executive Officer Stephen R. Brown Chief Financial Officer & Treasurer Senior Executive Vice President, Stephen R. Brown Hudson Valley Holding Corp. Senior Executive Vice President, Chief Financial Officer & Treasurer William E. Griffin Chief Financial Officer & Treasurer John P. Cahill President Counsel Gregory F. Holcombe Griffin, Coogan, Chadbourne and Parke, LLP Vice President Blose & Sulzer, P.C. BMW Machinery Co., Inc. Mary-Jane Foster Michael E. Kahn Senior Vice President Vice-President Michael P. Maloney University Relations Executive Vice President, James J. Landy University of Bridgeport Chief Banking Officer President & Chief Executive Officer Gregory F. Holcombe Angelo R. Martinelli Hudson Valley Holding Corp. Vice President Chairman BMW Machinery Co., Inc. Gazette Press, Inc. Angelo R. Martinelli Chairman Adam Ifshin Vincent T. Palaia Gazette Press, Inc. President & CEO Executive Vice President, DLC Management Corp. Chief Lending Officer Andrew J. Schmeidler Senior Vice President Michael P. Maloney John A. Pratt Jr. Executive Vice President, Retired President & Frederick B. Taylor Chief Banking Officer Chief Executive Officer Former Vice Chairman & Hudson Valley Holding Corp. Chief Investment Officer Angelo R. Martinelli U.S. Trust Company Chairman Cecile D. Singer Gazette Press, Inc. Principal Cecile D. Singer Consulting John A. Pratt Jr. Vice Chairman Craig S. Thompson Retired President & President Chief Executive Officer Thompson Pension Hudson Valley Holding Corp. Employee Plans, Inc. Cecile D. Singer Principal Cecile D. Singer Consulting Craig S. Thompson President Thompson Pension Employee Plans, Inc.

27 A.R. Schmeidler— Distinct Portfolios, Distinct Results

Left to right: John H. Wyman EVP Jared Levin SVP, Portfolio Manager Stephen R. Burke President & CEO Peter G. Kandel, Jr. SVP, Chief Financial Officer Arnold R. Schmeidler Chairman Andrew J. Schmeidler SVP, Portfolio Manager Michael E. Kahn SVP, Portfolio Manager Albert J. Schmeidler Portfolio Manager

or more than 40 years, A.R. Schmeidler This philosophy requires an unwavering commitment to Fhas helped institutions and high-net-worth research that leads to a disciplined and opportunistic individuals meet their changing investment needs approach to investing. It is also an approach that can through a variety of market environments. allow for successful investing even within the context of today’s challenging economic and market climate. This past year was marked by several historic events from a social, geopolitical and economic perspective. The tragic As of December 31, 2011, A.R. Schmeidler provides investment earthquake and tsunami in Japan, the Arab Spring, the advisory services for assets in excess of $1.5 billion, $1.3 billion sovereign debt problems of many European nations, and the in Assets Under Management (AUM) and an additional $260 United States’ struggles to address the deficit all contributed million in Unified Managed Account (UMA) programs. A.R. to one of the most volatile years in the history of the financial Schmeidler launched two important marketing initiatives in markets. Across the developed world, mature economies the United States and Canada, which we believe will help are experiencing the highest levels of unemployment in a accelerate growth of the firm in the years to come. The firm generation while government balance sheets are straining continues to attract interest from institutions and high-net-worth under excessive debt burdens. With the Federal Reserve individuals in the United States and abroad who are drawn committing to keep interest rates at or near 0% through to our long-term results and distinct investment portfolios. 2014, many market participants were left uncertain as Looking forward to 2012 and beyond, A.R. Schmeidler will to how to best position their portfolios. With our distinct continue its commitment to building capital and protecting investment approach, we have continued to help clients purchasing power for clients, while providing a superior client manage in this challenging environment to meet their goals. experience. We remain focused on helping our valued clients Since our inception in 1971, the investment philosophy navigate a difficult environment and a rapidly changing has been and remains to purchase the most assets, global society. In periods of difficult short-term performance, earnings and cash flow for the fewest dollars among we remain focused on the time-tested investment principles companies that stand to benefit from the global forces. that have served us well over the course of 40 years.

28 Banking the Way You Want It… When You Want It...Where You Want It At Hudson Valley Bank, we continually evaluate and update our products and services to meet the needs of our customers. We offer the latest technology to allow you to choose how you conduct your business with us, from telephone or branch banking to electronic banking. We have the delivery methods and cutting-edge products you want. And one size does not fit all. We tailor our services to meet your lifestyle and business needs. Business Solutions Investment Specialized Deposit & Savings Cash Management Business Loans Management* Business Services

• Business Checking • HVB Cash Manager • Business Lines of Credit • Public & Private • Attorney Escrow, IOLA (Online Banking) Company Pension & IOLTA Accounts • Business Checking • Business Revolving Funds with Interest • Balance Reporting Lines of Credit • Continuing Legal • Public & Private Education (CLE) • Business Money Market • E-Statements • Business Term Loans Company Profit Programs • Business Statement • Check Imaging • Commercial Mortgages Sharing Plans • Tenant Security Savings Account • Bill Pay • Construction Loans • Not-for-Profit Accounts • Certificates of Deposit Endowment Funds • Automated Clearing • Multi-Family Loans • School Tuition Accounts • ATMs/Debit House (ACH) • Union/Taft Hartley • Energy Efficiency Loans • Nursing Home Resident MasterCard • Wire Transfers Welfare Plans • Equipment Leasing & Accounts • Positive Pay Financing • Restricted Accounts • Tax Payments • Municipal Loans • Remote Check Deposit • Image-Enabled Lockbox • Payroll Direct Deposit • Merchant Services • Business Credit Cards • Easy Access Telephone Banking

Personal Solutions Investment Personal Trust & Deposit & Savings Cash Management Consumer Loans Management* Fiduciary Services

• Personal Checking • Personal Online • Installment Loans • Taxable & • Supplemental Needs Banking Tax-Exempt Trusts • Personal Checking with • Lines of Credit Personal Accounts Interest • Balance Reporting • Guardianships • Cash Reserve Lines • IRAs, Keoghs & • Personal Money Market • E-Statements of Credit • Irrevocable Trusts Other Retirement • Statement Savings • Check Imaging • Home Equity Lines of Accounts • Revocable Trusts Accounts Credit (HELOCs) • Bill Pay • Individual Trusts • Charitable Trusts • Certificates of Deposit • Residential Mortgages • Account Transfers • Family Trusts • Will Appointment • ATM/Debit Cards • Credit Cards • Easy Access Telephone • Family Foundations • Retirement Accounts Banking • Direct Deposit • Safe Deposit Boxes

* Investments are NOT FDIC insured; NOT bank guaranteed; and MAY lose value

29 A History of Customer Support

ur Business Development Board (BDB) consists of an exceptional group of our most valued customers who provide us with Oquality advice and guidance on industry trends and community happenings and most importantly, provide referrals from among their colleagues, associates and friends. The primary goal of the BDB is to develop business for the Bank. With their experience and insight, these business, civic and not-for-profit community leaders contribute significantly to our continued growth and success.

Our BDB was first established in 1973 with five members who shared our Founders’ vision of a local bank serving the local business community. Over the years, the mission of the BDB has not changed. It is to create awareness of the Bank, generate business referrals and assist us in meeting the banking needs of the people who live and work in the communities we serve. We are fortunate to have such a loyal and dedicated group and thank them for their invaluable support.

We are pleased to welcome new members:

new York

Seth Berman Gayle M. Cratty Janice Levites David N. Milner, Esq. Executive Director Director of Community Managing Partner Senior Partner Family Service Society of Relations & Development Levites Realty Management, LLC Gallet, Dreyer & Berkey, LLP Yonkers SAIL at Ferncliff Manor

30 Hudson Valley Holding Corp.

New York

Angelo R. Martinelli Paul G. Amicucci, Esq. David J. Amster Frank J. Anelante, Jr. Mark I. Anker Chairman Attorney & Partner President Chief Executive Officer President Business Development Board Walsh & Amicucci, LLP Prime Locations, Inc. Lemle & Wolff, Inc. Anker Management Corp.

Anthony J. Arditi Andrew J. Balint, Esq. William F. Banks, Esq. Eric Bergstol John A. Bonito Ellen M. Boyle, Esq. President Attorney Attorney Owner/Founder Co-President Attorney Co-op City Tire Supply Corp. DelBello, Donnellan, Banks Curran Schwam & Bergstol Enterprises Garthchester Realty, Ltd. Boyle Real Estate Weingarten & Tartaglia Squirrell, LLP

Gerald M. Boyle Steven A. Brown Preston M. Bruenn Mae R. Carpenter Charles D. Casarella Paul F. Cocozza, Esq. Executive Vice President & President President Director Principal Attorney Principal Greyston Foundation Automated Control Logic Westchester County Office Halcyon Construction Corp. Cocozza & Cocozza Commodore Construction Corp. for the Aging PFC Abstract Corp.

Warren L. Cohen, Esq. Ronald J. Corti Joan Cunningham Joseph R. Curto, Esq. Andrew N. Cutler, Esq. Michael P. D’Alessio Attorney President & CEO Attorney Attorney & Partner President St. John’s Riverside Hospital Veneruso, Curto, Schwartz & Cutler Minikes & Adelman, LLP D’Alessio Enterprises, LLC Curto, LLP

Dominick N. D’Ambrozio, Esq. Carl A. D’Angelo Anthony V. DeBellis, Sr. Joseph A. Deglomini John DeVito Steven E. De Young, Esq. Attorney & Partner Consultant Commissioner of President President Attorney D’Ambrozio, Newman & Assessment Tower Properties A. DeVito & Son, Inc. Co., LLP City of Mount Vernon

31 Patrick A. Diggins Nicoletta DiNapoli Robert J. DiSciullo, Esq. Edward W. Doyle, Esq. Brian Alan Eisen, Esq. Anthony J. Enea, Esq. President Executive Director Attorney Attorney Attorney Attorney Diggins Mechanical These Our Treasures, Inc. DiSciullo Botchman, LLP Hudson Valley Enea, Scanlan & Sirignano, LLP Corporation Professional Center

Michael E. Fareri John P. Farrauto, Esq. Bram Fierstein Eli B. Fine Carl L. Finger, Esq. David A. Ford, Sr. President Attorney Vice President Certified Public Accountant Attorney Chairman Fareri Bros., Inc. Farrauto, Berman & Slater Gramatan Management, Inc. Finger & Finger Mount Vernon Neighborhood Health Center

Ken Ford James Foy Bruce D. Friedberg Robert J. Galterio Pauline M. Galvin, Esq. Anthony Gazivoda Principal Healthcare Advisor Partner General Manager Law Office of President New York Title Research Friedberg Cohen Coleman & Yonkers Racing Corp. Pauline M. Galvin Gazivoda Realty Co., Inc. Corporation Pinkas, LLP

Steven J. Giamundo Paul M. Giddins, Esq. Richard Giliotti Mark D. Ginsburg, Esq. Ralph G. Giordano Sheldon Glassman, Esq. President Partner President Attorney President Attorney GIA Associates, Inc. Giddins Claman, LLP Judicial Title Insurance Agency Ginsburg & Redmond, P.C. Ralph Giordano Funeral Home

Arlen Goldberg Joshua Goldstein Steven M. Greco, Esq. George Grossman, Esq. Michael S. Henderson P. Daniel Hollis, III, Esq. President President President Attorney President Attorney Metropolis Abstract Corp. The Lynmark Group Steven M. Greco & Grossman & Associates Tristate Title Agency, LLC Shamberg Marwell Davis & Associates, P.C. Hollis, P.C.

32 Hudson Valley Holding Corp.

Michael F. Horgan, Jr., Esq. Thomas J. Hughes, Jr., Esq. Stephen Ifshin, Esq. Marc J. Isaacs, Esq. Laurence Keiser, Esq. Robert Kestenbaum Partner Attorney Chairman Attorney & Partner Attorney Chief Executive Officer Begos Horgan & Brown DLC Management Corporation Isaacs & Associates, PLLC Stern, Keiser, Panken & York International Agency, LLC Wohl, LLP

Thomas R. Kozera Martin Kravet John T. Lamorte, II Barbara Lerman, Esq. Warren Lesser James R. Letsen President & CEO Managing Member President & COO Attorney Chairman Senior Account Executive SKCG Group, Inc. Royal Abstract of New York, LLC Westchester Property H&S Property Charles H. Greenthal & Management Group, Inc. Management, Inc. Company

Joseph Lorono Lawrence L. Maffei, Esq. Edward M. Malone Richard Marans, Esq. Arnold Marden Anthony Martello President Attorney Partner Partner Co-Managing Partner President Lorono Construction Maffei, Maffei & Keating Brookfield Metal Company Marans Weisz & Newman, LLC J.H. Cohn, LLP Matell Contracting Co., Inc.

John R. McCarthy Kenneth M. Meccia Jay R. Mendel Giulio Monaco, Sr. Anthony Montalbano, Esq. Vincent J. Monte Partner President Co-President Vice President Partner President McCarthy Assoc. Statewide Abstract Corp. Garthchester Realty, Ltd Verde Electric Corp. Montalbano, Condon & The Monte Group Frank, P.C.

Michael Morelli Awni I. Naber Mark Nesoff, Esq. Ralph R. Nobile, Esq. Richard B. O’Neill Marc S. Oxman, Esq. President President Attorney Attorney President Attorney V.I.P. Country Club Naber Electric Corp. Nobile, Magarian & DiSalvo HH Management Corp. Oxman Tullis Kirpatrick Whyatt & Geiger, LLP

33 Radame Perez, II David A. Pope Valorie J. Promisel, Esq. Arnold L. Putterman, Esq. Corey B. Rabin, Esq. Philip Raffiani COO President & CEO Attorney Attorney Attorney Vice President Mastermind Development, LLC Generoso Pope Foundation Putterman & Putterman Rabin Panero & Herrick Mirado Properties Inc.

Howard M. Ravikoff Vincent D. Reda Ronald Rettner Randy Rifelli Peter M. Rivera, Esq. Jeffrey Rodner, Esq. Vice President Chairman President President Law Office of Peter M. Rivera Attorney & Partner M. Ravikoff Assoc. Rockland County Republican Rettner Management Corp. United Iron, Inc. Gellert & Rodner Committee

Sheryl M. Saidel, Esq. Brandon R. Sall, Esq. Christopher Santomero Jeffrey L. Sapir, Esq. Andrew W. Sayegh, Esq. Mark Scharfman Partner Attorney & Partner Owner Attorney Attorney President Saidel & Saidel Schuman Sall Geist Lordae Management Beach Lane Management, Inc. Attorneys at Law

David Simkins Pat Simone Frank Sinatra, Jr. Joseph J. Sisca, Jr. Judith A. Speight Michael J. Spicer President President President President CEO President & CEO Mobile Communications Simone Development Sinatra Funeral Home, Inc. J. J. Sisca & Associates Hudson North Management, LLC Saint Joseph’s Medical Center Plus, Inc. Company, LLC Building Corp.

Lyle Ison Steinberg Jeffrey Stillman Richard J. Strassfield, Esq. Stephen Tenore Timothy R. Tostanoski John P. Tucciarone, Esq. President Vice President Attorney Co-Owner & Funeral Director President Attorney Westchester Fairfield Stillman Management Harold, Salant, Lloyd Maxcy & Sons, 32 Hayes Street Ltd. Agency, Ltd. Strassfield, & Spielberg Beauchamp Chapel, Inc.

34 Joseph Urbinati, Jr. Louis M. Vazquez James J. Veneruso, Esq. Vito R. Verni Colleen Griffin Wagner Michael R. Weisberg President Executive Director Attorney & Partner Chairman Hudson Valley National Owner MPCC Corp. RAIN, Inc. Veneruso, Curto, Schwartz & Verco Management Foundation Board M-Core Credit Corporation Curto, LLP

Howard Wenig, Esq. Michael J. Whelan Samuel A. Wilkins, Jr. Donald E. Wilson Frank Wymbs Mark Zucker Attorney President President President President President Managing Partner Gardner M. Bishop, Inc. Hillside Development Corp. Blue Woods Management Wymbs, Inc. Zucker & Associates Belkin Burden Wenig & Group, Inc. Goldman

Connecticut

Mary-Jane Foster Michael P. Beckerich Timothy Bishop, Esq. Michael J. Cacace, Esq. Marilyn Ward Ford, Esq. Chairperson Founder & President Partner Managing Partner Professor Connecticut Business York Analytical Laboratories, Inc. Bishop, Jackson & Kelly, LLC Cacace, Tusch & Santagata Quinnipiac University Development Board School of Law

Vincent J. Freccia, III, Esq. Alyssa Keleshian-Bonomo Carla Miklos David L. Quatrella, Esq. Louis Regina, III Robert D. Russo, M.D., F.A.C.R. Law Office of Vice President Executive Director Quatrella & Rizio, LLP Principal President & CEO Vincent J. Freccia, III K Investments, Inc. Operation Hope of Fairfield, Inc. Re gina Capital Robert D. Russo MD & Associates, Radiology

Sabine H. Schoenberg Robert A. Sisca Robert Vincent Sisca, Esq. Benjamin F. Snead Prime Sites, Inc. President Law Offices of Robert Chief Financial Officer RAS Construction Corp. Vincent Sisca & Associates Paragon Group

35 Corporate Information Corporate Office Operating Subsidiaries Stock Transfer Agent Correspondent Banks 21 Scarsdale Road Hudson Valley Bank, N.A. & Registrar Federal Home Loan Bank of Yonkers, NY 10707 A.R. Schmeidler & Co., Inc. Registrar and Transfer Company New York (914) 961-6100 10 Commerce Drive First Tennessee Bank, N.A. Cranford, NJ 07016 JPMorgan Chase & Co. (800) 368-5948 M&T Bank, N.A. Investor Relations E-mail: [email protected] www.rtco.com

HUDSON VALLEY BANK Church Street Branch Bronx: 3 Branches Greenwich 40 Church Street 500 West Putnam Avenue 36 BRANCHES White Plains, NY 10601 Allerton Branch Suite 402 (914) 761-5070 975 Allerton Avenue Greenwich, CT 06830 Westchester County: Bronx, NY 10469 (203) 987-6500 18 Branches Knollwood Road Branch (718) 655-0227 399 Knollwood Road Milford Eastchester Suite 303 Hutch Metro Branch 54 Broad Street 111 Brook Street White Plains, NY 10603 1250 Waters Place Milford, CT 06460 Scarsdale, NY 10583 (914) 922-9428 Bronx, NY 10461 (203) 951-3070 (914) 368-2100 (347) 706-3315 Yonkers: 6 Branches Stamford Elmsford Tremont Branch 1055 Summer Street 37 East Main Street Main Branch 3130 East Tremont Avenue Stamford, CT 06905 Elmsford, NY 10523 35 East Grassy Sprain Road Bronx, NY 10461 (203) 989-0970 (914) 592-1214 Yonkers, NY 10710 (718) 892-4830 (914) 771-3275 Stratford Mamaroneck Manhattan: 4 Branches 2505 Main Street 875 Mamaroneck Avenue Getty Square Branch Stratford, CT 06615 Mamaroneck, NY 10543 61 South Broadway Lincoln Building Branch (203) 883-9993 (914) 873-4935 Yonkers, NY 10701 60 East 42nd Street (914) 968-8375 Suite 1836 Westport Mount Kisco New York, NY 10165 420 Post Road West 664 Main Street Lake Avenue Branch (212) 949-1974 Westport, CT 06880 Mount Kisco, NY 10549 150 Lake Avenue (203) 349-8762 (914) 241-7135 Yonkers, NY 10703 Park Avenue Branch (914) 968-9191 350 Park Avenue Mount Vernon 24th Floor New York National 403 East Sandford Boulevard McLean Avenue Branch New York, NY 10022 Division Mount Vernon, NY 10550 865 McLean Avenue (212) 400-6020 (914) 668-2655 Yonkers, NY 10704 2 BRANCHES (914) 237-7800 Woolworth Building Branch New Rochelle 233 Broadway Bronx 5 Huguenot Street Rockledge Branch Suite 2205 New Rochelle, NY 10801 512 South Broadway New York, NY 10279 The “HUB” (914) 576-9780 Yonkers, NY 10705 (212) 571-9520 369 East 149th Street (914) 965-5621 Bronx, NY 10455 Peekskill West 34th Street Branch (718) 402-1195 1835 East Main Street Scarsdale Road Branch 112 West 34th Street Peekskill, NY 10566 21 Scarsdale Road Suite 1903 Manhattan (914) 736-9416 Yonkers, NY 10707 New York, NY 10120 (914) 768-6876 (646) 358-4140 East Harlem Pleasantville 2256 Second Avenue 501 Marble Avenue Rockland County: Brooklyn New York, NY 10029 Pleasantville, NY 10570 2 Branches (212) 860-1700 (914) 769-8661 Court Street Branch New City Branch 16 Court Street Port Chester 254 South Main Street Suite 1907 A.R. SCHMEIDLER & CO., INC. 500 Westchester Avenue New City, NY 10956 Brooklyn, NY 11241 A Hudson Valley Bank Port Chester, NY 10573 (845) 521-7000 (347) 706-3310 Company (914) 937-9747 500 Fifth Avenue Suffern Branch Connecticut: 6 Branches 14th Floor White Plains: 3 Branches 4 Executive Boulevard New York, NY 10110 Suite 103 Fairfield (212) 687-9800 Central Avenue Branch Suffern, NY 10901 2000 Post Road 328 Central Avenue (845) 738-4054 Fairfield, CT 06824 White Plains, NY 10606 (203) 274-8480 (914) 948-4400 36 DUTCHESS Drive In

PUTNAM

Peekskill

Mount Kisco ROCKLAND N e w Y o r k

New City Connecticut

Pleasantville Milford Suffern Stratford Westport Fairfield

Elmsford White Plains

Stamford

Greenwich WESTCHESTER

Eastchester Mamaroneck Port Chester

New York New Rochelle New Jersey YONKERS Mount Vernon

BRONX

MANHATTAN

BROOKLYN 21 Scarsdale Road, Yonkers, NY 10707 (914) 961- 6100

Hudson Valley Bank A.R. Schmeidler & Co., Inc. New York National Division www.hudsonvalleybank.com www.arschmeidler.com www.nynb.com

Member FDIC