SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 22, 1996
HUBCO, INC.
(Exact name of registrant as specified in its charter)
New Jersey
(State or other jurisdiction of incorporation)
1-10699 22-2405746
(Commission File Number) (IRS Employer Identification No.)
1000 MacArthur Boulevard, Mahwah, New Jersey 07430
(Address of principal executive offices)
(201) 236-2630
(Registrant's telephone number, including area code)
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Item 5. Other Events
On October 22, 1996, HUBCO, Inc.("HUBCO") reported earnings of $1.3
million for the third quarter of 1996 and $15.2 million for the nine months
ended September 30, 1996. The reported earnings reflect one-time merger-related
and restructuring charges relating to consummation of the acquisition of
Lafayette America Bank and Trust Company ("Lafayette") totalling (on an after
tax basis) $7.5 million for the third quarter and $9.0 million for the nine
month period, together with the FDIC's one-time assessment to recapitalize the
SAIF fund based on HUBCO's acquired SAIF balances pursuant to recently adopted
Federal legislation which totaled (on an after tax basis) $512,000 for both
periods. The results reported reflect the operation of Lafayette which was
accounted for as a pooling for all periods, but only reflect the acquisition of
Hometown Bancorporation, Inc. since the closing of that transaction on August
30, 1996, since that transaction was accounted for as a purchase.
A copy of the press release announcing the earnings is attached as an
exhibit.
Item 7. Exhibits
99.1 Press Release dated October 22, 1996.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
HUBCO, INC.
Dated: October 25, 1996 By: /S/ D. LYNN VAN BORKULO-NUZZO
------------------------------
D. Lynn Van Borkulo-Nuzzo,
Executive Vice President
<PAGE>
INDEX TO EXHIBITS
99.1 Press Release dated October 22, 1996.
FOR IMMEDIATE RELEASE
October 22, 1996
HUBCO Release Third Quarter Earnings Results
Mahwah, New Jersey, October 22, 1996 -- HUBCO, Inc. (NASDAQ:HUBC), the
third largest New Jersey based commercial banking company today reported
earnings for the third quarter and first nine months of 1996. The third quarter
results include all of the previously disclosed merger related and restructuring
charges related to the consummation of the Lafayette American Bank and Trust
Company acquisition on July 1, 1996, together with the FDIC's one-time
assessment to recapitalize the SAIF fund based on HUBCO's acquired SAIF balances
pursuant to Federal legislation. The results are reported here both before and
after all such third quarter charges. The results reflect the operation of
Lafayette American which was accounted for as a pooling for all periods but only
reflect the acquisition of Hometown Bancorporation since the closing of that
transaction on August 31, 1996, since that transaction was accounted for as a
purchase.
Earnings per share, fully diluted for the third quarter of 1996
excluding merger related, restructuring charges and the SAIF recapitalization
charge increased 11.6% to $.48 per share ($9,334,000), from $.43 per share
($8,606,000) for the same period last year. Including all the special charges
described above earnings declined to $1,269,000 or $.07 per share.
For the nine months ended September 30, 1996, fully diluted earnings
per share before merger related, restructuring and SAIF recapitalization charges
increased 8.5% to $1.27 ($24,746,000), from $1.17 per share ($23,632,000) for
the same period last year. Including all the special charges to date, earnings
declined to $15,218,000 or $.78 per share.
HUBCO's net interest margin for the third quarter of 1996 was 4.92% and
was 5.07% for the nine month period ending September 30, 1996. This compares
with 5.31% and 5.32% for the comparable periods in 1995.
Non-interest income, excluding security gains, totaled $5,999,000 for
the third quarter and $17,621,000 for the nine month period. This represents a
decrease of 3.7% from the 1995 third quarter which benefited from a $1,000,000
gain arising from the settlement of a bonding company claim and an increase of
2.3% from the first nine months of 1995.
Overhead expenses excluding merger related and restructuring charges
and the SAIF recapitalization charge for the third quarter of 1996 decreased
8.0% to $19,925,000 from $21,664,000 for the last year's third quarter. For the
nine month period ended September 30, 1996, excluding such special charges,
overhead expenses decreased 12.7% to $60,761,000 from $69,567,000. The merger
related and restructuring charges on an after tax basis totaled $7,554,000 for
the third quarter and $9,016,000 for the nine month period while the SAIF
recapitalization charges totaled $512,000 on an after tax basis for both
periods. All of the merger related and restructuring charges related to
Lafayette American have now been expensed. The computer conversion of Lafayette
American took place on September 20, 1996, as did certain other cost reduction
steps. The related cost savings from the Lafayette American acquisition are
expected to be reflected in HUBCO's future results. HUBCO's efficiency ratio,
excluding merger related and restructuring charges and SAIF recapitalization
charges, was 57.60% for the third quarter and 58.37% for the nine month period
ended September 30, 1996.
Non-performing assets of $39,050,000 (1.4% of assets) were flat from
$39,570,000 a year ago and up slightly from $37,885,000 at June 30, 1996.
Non-performing loans totaled $31,960,000 (2.0% of loans) up from $25,628,000 a
year ago and flat from $31,039,000 at June 30, 1996. The Allowance for Possible
Loan Losses totaled $29,709,000 which represented 93.0% of non-performing loans
and 96.6% of non-accruing loans.
HUBCO's total assets at September 30, 1996 were $2.72 billion. Loans
totaled $1.61 billion, deposits were $2.24 billion and stockholders equity was
$182.6 million. HUBCO raised $75 million of Subordinated Debt during the
quarter, a substantial portion of which is included in Tier II Capital. Capital
ratios for HUBCO were as follows: Tier I Risk Based - 9.47%, Total Risk Based-
15.46% and The Leverage Capital Ratio was 6.40%. These ratios all exceed the
regulatory requirements of 6%, 10% and 5% respectively to be considered a well
capitalized institution.
HUBCO, Inc. is the bank holding company for Hudson United Bank which
operates 59 branches in New Jersey and Lafayette American Bank and Trust Company
which operates 21 branches in Connecticut. Two additional acquisitions in
Connecticut are pending and are expected to close in the fourth quarter.
HUBCO, INC.
Financial Highlights
(in thousands, except per share data)
Quarter Ended
September 30
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1996 1995
---- ----
Net Interest Income $28,505 $29,434
Provision for Possible Loan Losses 1,429 1,650
Net Income 1,269 8,606
Net Income, excluding one-time charge 9,334 8,606
Net Income Per Share, fully diluted .07 .43
Net Income Per Share, excluding one-time charges .48 .43
Weighted Average Shares Outstanding 19,257 20,031
Nine Months Ended
September 30
------------
1996 1995
---- ----
Net Interest Income $85,871 $88,581
Provision for Possible Loan Losses 5,825 5,890
Net Income 15,218 23,632
Net Income, excluding one-time charges 24,746 23,632
Net Income Per Share, fully diluted .78 1.17
Net Income Per Share, excluding one-time charges 1.27 1.17
Weighted average Shares Outstanding 19,460 20,153
At September 30
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1996 1995
---- ----
Total Assets $2,724,664 $2,442,562
Total Loans 1,609,410 1,434,248
Total Deposits 2,239,157 2,097,723
Stockholders' Equity 182,631 185,817
Weighted Average Shares Outstanding have been retroactively adjusted for the
effects of acquisitions accounted for as poolings of interest, stock dividends
and stock splits.
