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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
AMENDMENT OF CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) - July 1, 1996
HUBCO, INC.
(Exact Name of Registrant as Specified in 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) 236-2641
(Registrant's Telephone Number)
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<PAGE>
Item 7.
(a) Financial Statements and Exhibits.
The following audited financial statements of Lafayette, initially filed by
Lafayette with the FDIC on the Annual Report of Lafayette on Form F-2 for the
year ended December 31, 1995, as amended by amendments dated April 26, 1996 and
April 30, 1996, and subsequently filed by HUBCO with the Commission by means of
a Registration Statement on Form S-4, amended by Form S-4/A (the "Registration
Statement") (File No. 333-01829), are incorporated by reference into this report
from the Registration Statement:
Consolidated Balance Sheets as of December 31, 1995 and 1994
Consolidated Statements of Operations for the years ended December 31,
1995, 1994, 1993
Consolidated Statements of Changes in Shareholders' Equity for the years
ended December 31, 1995, 1994, 1993
Consolidated Statements of Cash Flows for the years ended December 31,
1995, 1994, 1993
Notes to Consolidated Financial Statements
Pursuant to paragraph (a)(2) of Item 7 of Form 8-K, a manually signed
accountants' report with respect to the above-referenced audited financial
statements is included as an exhibit to the Form 8-K.
The unaudited interim financial statements of Lafayette for the period ending
June 30, 1996 are set forth below:
<PAGE>
Consolidated Balance Sheets
Lafayette American Bank and Trust Company and Subsidiaries
<TABLE>
<CAPTION>
As of June 30,
----------------------------
(dollars in thousands) 1996 1995
- -----------------------------------------------------------------------------------
<S> <C> <C>
Assets:
Cash and Due From Banks.............................. $ 36,370 $ 32,006
Interest Bearing Deposits with Banks................. 1,505 958
Federal Funds Sold................................... 1,625
Securities........................................... 125,717 177,549
Loans................................................ 548,005 467,384
Less Reserve for Possible Loan Losses.............. (9,664) (9,753)
- -----------------------------------------------------------------------------------
Net Loans........................................ 538,341 457,631
Deferred Income Taxes................................ 14,559 9,793
Cash Surrender Value................................. 8,545 7,724
Accrued Interest Receivable.......................... 4,609 4,624
Premises and Equipment............................... 4,436 5,032
Other Real Estate Owned, Net......................... 3,103 5,987
Other Assets......................................... 4,023 5,446
- -----------------------------------------------------------------------------------
Total Assets..................................... $741,208 $708,375
- -----------------------------------------------------------------------------------
Liabilities and Shareholders' Equity:
Liabilities:
Deposits:
Noninterest Bearing.............................. $135,485 $125,952
Interest Bearing................................. 511,464 445,059
- -----------------------------------------------------------------------------------
Total Deposits................................. 646,949 571,011
Funds Borrowed..................................... 29,197 80,727
Other Liabilities.................................. 6,498 6,860
- -----------------------------------------------------------------------------------
Total Liabilities................................ 682,644 658,598
- -----------------------------------------------------------------------------------
Shareholders' Equity:
Preferred Stock - par value $1 per share:
Authorized shares - 275,000...................... -- --
Common Stock - no par value; stated value $.02
per share:
Authorized shares - 15,000,000
Issued shares - 10,036,637 in 1996 and
10,005,196 in 1995........................... 201 200
Capital Surplus.................................... 50,433 63,087
Retained Earnings (Deficit)........................ 8,437 (13,028)
Net Unrealized Losses on Available
for Sale Securities, Net of Taxes................ (373) (441)
Unfunded Pension Accumulated Benefit Obligation.... (93) --
Net of Taxes
Treasury Stock - at cost (7,000 common shares)..... (41) (41)
- -----------------------------------------------------------------------------------
Total Shareholders' Equity....................... 58,564 49,777
- -----------------------------------------------------------------------------------
Total Liabilities and Shareholders' Equity....... $741,208 $708,375
- -----------------------------------------------------------------------------------
</TABLE>
<PAGE>
Financial Highlights
Lafayette American Bank and Trust Company and Subsidiaries
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
(dollars in thousands --------------------------------------------------
except per share data) 1996 1995 1996 1995
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Income Before Income Taxes............ $ 187 $ 1,908 $ 1,742 $ 3,161
Provision (Benefit) for Income Taxes.. 187 (5,223) 952 (6,118)
------ ------- ------- -------
Net Income............................ $ 0 $ 7,131 $ 790 $ 9,279
====== ======= ======= =======
Per Common Share:
Net Income.......................... $ - $.70 $.08 $.91
Cash Dividends Declared............. .10 - .15 -
- ---------------------------------------------------------------------------------------------
Return on Average Assets.............. .48%(A) 4.17% .62%(A) 2.76%
Return on Average Common Equity....... 5.95%(A) 66.57% 7.56%(A) 45.31%
Efficiency Ratio...................... 60.63%(A) 68.47% 61.32%(A) 71.84%
<CAPTION>
- ----------------------------------------------------------------------------------------------
As of June 30, 1996 1995
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Assets.............................. $741,208 $708,375
Net Loans........................... 538,341 457,631
Deposits............................ 646,949 571,011
Shareholders' Equity................ 58,564 49,777
Nonperforming Assets................ 13,144 14,745
Per Common Share:
Book Value........................ 5.84 4.98
Market Price...................... 12.38 8.31
Total Risk-Based Capital Ratio...... 10.42% 10.68%
Tier 1 Leverage Capital Ratio....... 6.77% 6.56%
</TABLE>
- -------------
(A) Excludes merger related charges of $1,317,000 and $2,088,000 for the three
and six months ended June 30, 1996, respectively.
<PAGE>
Consolidated Statements of Income
Lafayette American Bank and Trust Company and Subsidiaries
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
(dollars in thousands, ------------------------------------------------
except per share data) 1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest Income:
Loans, Including Fees.................. $11,562 $10,306 $23,052 $19,998
Securities............................. 2,013 2,644 4,153 5,234
Deposits with Banks and Federal
Funds Sold........................... 38 26 101 51
- ------------------------------------------------------------------------------------------------
Total Interest Income................ 13,613 12,976 27,306 25,283
- ------------------------------------------------------------------------------------------------
Interest Expense:
Deposits............................... 4,981 4,111 9,956 7,806
Funds Borrowed......................... 284 1,052 737 2,057
- ------------------------------------------------------------------------------------------------
Total Interest Expense............... 5,265 5,163 10,693 9,863
- ------------------------------------------------------------------------------------------------
Net Interest Income...................... 8,348 7,813 16,613 15,420
Provision for Possible Loan Losses....... 1,450 890 2,500 1,990
- ------------------------------------------------------------------------------------------------
Net Interest Income After
Provision for Possible Loan Losses..... 6,898 6,923 14,113 13,430
- ------------------------------------------------------------------------------------------------
Noninterest Income:
Service Charges on Deposit Accounts.... 962 910 1,869 1,747
Commissions and Fees................... 124 124 228 234
Gains on Sales of Loans................ 58 187 146 216
Mortgage Servicing Fees................ 67 74 143 144
Trust Income, Net...................... 44 388 78 688
Securities Gains....................... - - - 528
Other.................................. 28 51 87 97
- ------------------------------------------------------------------------------------------------
Total Noninterest Income............. 1,283 1,734 2,551 3,654
- ------------------------------------------------------------------------------------------------
Noninterest Expense:
Salaries............................... 2,420 2,422 4,828 4,930
Employee Benefits...................... 461 574 1,030 1,180
Net Occupancy.......................... 835 833 1,707 1,667
Merger Related Charges................. 1,317 - 2,088 -
Furniture and Equipment................ 464 444 904 1,016
Foreclosed Properties Expense, Net..... 837 210 1,080 594
FDIC Insurance......................... 45 391 88 783
Other.................................. 1,615 1,875 3,197 3,753
- ------------------------------------------------------------------------------------------------
Total Noninterest Expense............ 7,994 6,749 14,922 13,923
- ------------------------------------------------------------------------------------------------
Income Before Income Taxes............... 187 1,908 1,742 3,161
Provision (Benefit) for Income Taxes..... 187 (5,223) 952 (6,118)
- ------------------------------------------------------------------------------------------------
Net Income............................... $ 0 $ 7,131 $ 790 $ 9,279
- ------------------------------------------------------------------------------------------------
Average Common Shares Outstanding........ 10,341,422 10,219,481 10,333,896 10,196,202
Per Common Share:
Net Income............................. $ - $.70 $.08 $.91
Cash Dividends Delcared................ .10 - .15 -
</TABLE>
<PAGE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
Lafayette American Bank and Trust Company and Subsidiaries
<TABLE>
<CAPTION>
Six Months Ended
June 30,
(in thousands) 1996 1995
- --------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
Operating Activities:
Net Income.................................................. $ 790 $ 9,279
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Provision for Possible Loan Losses...................... 2,500 1,990
Provision for Loss on Foreclosed Properties............. 559 143
Provision for Depreciation and Amortization............. 837 811
Amortization (Accretion) of Securities Premiums
(Discounts), Net...................................... 128 (64)
Deferred Income Tax Provision (Benefit)................. 892 (6,048)
Securities Gains........................................ -- (528)
Gains on Sales of Loans................................. (146) (216)
Loans Originated for Sale............................... (3,584) (4,567)
Proceeds from Sales of Loans Originated for Sale........ 2,761 4,330
Net Change in Interest Receivables and Payables......... (15) 117
Decrease in Other Assets................................ 2,323 5,270
Increase in Other Liabilities........................... 587 32
-------- --------
Net Cash Provided by Operating Activities............. 7,632 10,549
-------- --------
Investing Activities:
Securities Available for Sale:
Proceeds from Maturities of Securities.................... 14,951 7,634
Proceeds from Sales of Securities......................... -- 841
Purchases of Securities................................... (2,614) (1,503)
Securities Held to Maturity:
Proceeds from Maturities of Securities.................... 2,677 3,632
Purchases of Securities................................... -- (10,110)
Originations of Loans, Net.................................. (31,384) (34,292)
Purchases of Premises and Equipment......................... (394) (1,055)
-------- --------
Net Cash Used for Investing Activities................ (16,764) (34,853)
-------- --------
Financing Activities:
Net Decrease in Demand, NOW, Savings and
Money Market Deposits..................................... (5,662) (24,102)
Net Increase in Time Deposits............................... 26,268 24,704
Net Decrease in Federal Home Loan Bank Advances............. (8,000) (16,000)
Net Increase in Federal Funds Purchased and
Securities Sold Under Repurchase Agreements............... 3,560 37,622
Net Increase in Other Borrowed Funds........................ 42 152
Proceeds from Exercise of Stock Options..................... 23 --
Proceeds from Exercise of Warrants.......................... 82 --
Cash Dividends Paid......................................... (1,501) --
-------- --------
Net Cash Provided by Financing Activities............... 4,812 22,376
-------- --------
Net Decrease in Cash and Cash Equivalents............... (4,320) (1,928)
Cash and Cash Equivalents at Beginning of Period............ 42,195 36,517
-------- --------
Cash and Cash Equivalents at End of Period.................. $ 37,875 $ 34,589
======== ========
Supplemental Information on Cash Paid For:
Interest.................................................. $ 10,740 $ 9,554
Income Taxes Paid (Refunded), Net......................... 142 (534)
Noncash Investing and Financing Activities:
Transfer from Loans to Other Real Estate Owned............ 566 753
Loans to Facilitate Sale of Other Real Estate Owned....... 1,025 855
(Increase) Decrease in Unrealized Loss on Available
for Sale Securities..................................... (609) 2,250
</TABLE>
<PAGE>
CONSOLIDATED STATEMENTS OF
CHANGES IN SHAREHOLDERS' EQUITY
Lafayette American Bank and Trust Company and Subsidiaries
(unaudited)
<TABLE>
<CAPTION>
Net
Unrealized Unfunded
Losses on Pension
Retained Available Accumulated
Preferred Common Capital Earnings for Sale Benefit Treasury
(dollars in thousands, except per share data) Stock Stock Surplus (Deficit) Securities Obligation Stock Total
- --------------------------------------------- --------- ------ ------- --------- ---------- ------------ -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance, December 31, 1994 .................. $ -- $200 $63,016 $(22,307) $(2,998) $ -- $ (41) $37,870
Net Income .................................. -- -- -- 9,279 -- -- -- 9,279
Effect of Compensation Plans ................ -- -- 71 -- -- -- -- 71
Decrease in Net Unrealized Losses on
Available for Sale Securities, Net of Taxes -- -- -- -- 2,557 -- -- 2,557
------ ---- ------- -------- ------- ----- ----- -------
Balance, June 30, 1995 ...................... $ -- $200 $63,087 $(13,028) $ (441) $ -- $ (41) $49,777
====== ==== ======= ======== ======= ===== ===== =======
Balance, December 31, 1995 .................. $ -- $200 $50,213 $ 9,148 $ (11) $ -- $ (41) $59,509
Net Income .................................. -- -- -- 790 -- -- -- 790
Common Stock Cash Dividends
($.15 per share) ........................... -- -- -- (1,501) -- -- -- (1,501)
Effect of Compensation Plans ................ -- -- 116 -- -- -- -- 116
Exercise of Stock Options (4,667 shares) .... -- -- 23 -- -- -- -- 23
Exercise of Warrants (18,441 shares) ........ -- 1 81 -- -- -- -- 82
Additional Pension Liability, Net of Taxes .. -- -- -- -- -- (93) -- (93)
Increase in Net Unrealized Losses on
Available for Sale Securities, Net of Taxes -- -- -- -- (362) -- -- (362)
------ ---- ------- -------- ------- ----- ----- -------
Balance, June 30, 1996 ...................... $ -- $201 $50,433 $ 8,437 $ (373) $ (93) $ (41) $58,564
====== ==== ======= ======== ======= ===== ===== =======
</TABLE>
<PAGE>
(b) Pro Forma Financial Information.
HUBCO's pro forma condensed statement of condition as of June 30, 1996 and
pro forma condensed statements of income for the years ended December 31,
1995, 1994, 1993 and for the six-month period ended June 30, 1996, are set
forth below:
<PAGE>
Pro forma Unaudited Combined Condensed Balance Sheet
As of June 30, 1996
($ in thousands, except per share data)
<TABLE>
<CAPTION>
Pro Forma Pro Forma
Assets HUBCO Lafayette Adjustments Combined
-----------------------------------------------------
<S> <C> <C> <C> <C>
Cash and due from banks ................... $ 81,389 $ 37,875 $ -- $ 119,264
Securities ................................ 644,995 125,717 (6,355)(1) 764,357
Loans ..................................... 954,138 548,005 1,502,141
Less: Allowance for loan losses ........... (18,055) (9,664) (27,719)
-----------------------------------------------------
936,081 538,341 1,474,422
-----------------------------------------------------
Other assets .............................. 68,045 39,275 107,320
Intangibles, net of amortization .......... 9,356 -- 9,356
-----------------------------------------------------
Total Assets ............................ $1,739,866 $741,208 $ (6,355) $2,474,719
=====================================================
Liabilities and Stockholders' Equity
Deposits:
Noninterest bearing ..................... $ 315,958 $135,485 $ -- $ 451,443
Interest bearing ........................ 1,171,849 511,464 1,683,313
-----------------------------------------------------
Total deposits ........................ 1,487,807 646,949 2,134,756
-----------------------------------------------------
Borrowings ................................ 85,357 29,197 114,554
Other liabilities ......................... 11,588 6,498 7,038 (2) 25,124
-----------------------------------------------------
Total Liabilities ..................... 1,584,752 682,644 7,038 2,274,434
Subordinated debt ......................... 25,000 -- 25,000
Stockholders' Equity:
Preferred stock ......................... -- -- --
Common stock ............................ 25,502 201 9,437 (3) 35,140
Additional paid in capital .............. 62,283 50,433 (15,833) 96,883
Retained earnings ....................... 61,028 8,437 (7,038)(3) 62,427
Other ................................... (18,699) (507) 41 (19,165)
-----------------------------------------------------
Total Capital ......................... 130,114 58,564 (13,393) 175,285
-----------------------------------------------------
Total Liabilities and Capital ........... $1,739,866 $741,208 $ (6,355) $2,474,719
=====================================================
Common and common equivalent
shares outstanding ...................... 13,518 19,278
Book value per common and
common equivalent shares ................ $ 9.03 $ 9.12
</TABLE>
- -------------
(1) Represents the write-off of the HUBCO ownership of 550,000 Lafayette shares
at cost.
(2) To reflect the liability and charge to earnings for the anticipated
additional restructuring and merger related expenses that will be incurred
in the third quarter.
(3) Represents the shares issued in the acquisition times HUBCO's stated value
of $1.778 per share less the common stock value of Lafayette.
<PAGE>
Pro forma Unaudited Combined Condensed Statements of Income
For the Six Months Ended June 30, 1996
($ in thousands, except per share data)
Pro Forma
HUBCO Lafayette Combined
------------------------------------
Interest on loans ................. $42,240 $23,052 $65,292
Interest on securities ............ 19,125 4,153 23,278
Other interest income ............. 202 101 303
------------------------------------
Total Interest Income ........... 61,587 27,306 88,873
------------------------------------
Interest on deposits .............. 18,585 9,958 28,541
Interest on borrowings ............ 2,229 737 2,988
------------------------------------
Total Interest Expense .......... 20,814 10,893 31,507
------------------------------------
Net Interest Income ........... 40,753 18,813 57,388
Provision for loan losses ......... 1,896 2,500 4,398
Noninterest income ................ 9,982 2,551 12,533
Noninterest expense ............... 28,001 14,922 42,923
------------------------------------
Pre-Tax Income ................ 20,838 1,742 22,580
Income tax provision .............. 7,678 952 8,630
------------------------------------
Net Income .................... $13,180 $ 790 $13,950
====================================
Earnings per share ................ $ 0.95 $ 0.71
Weighted average common
shares outstanding .............. 13,844 19,604
<PAGE>
(c) Exhibits
2 Agreement and Plan of Merger, dated February 5, 1996, between
HUBCO and Lafayette. (Incorporated by reference from HUBCO's
Registration Statement on Form S-4, File No. 333-01829 filed
with the Commission (Annex A to the Joint Proxy
Statement-Prospectus)).
99.1 Report of Arthur Andersen LLP
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registration has duly caused this amendment to its report on Form 8-K to be
signed on its behalf by the undersigned thereto duly authorized.
HUBCO, INC.
Dated: August 19, 1996 By: KENNETH T. NEILSON
---------------------------------
Kenneth T. Neilson, Chairman,
President and Chief Executive Officer
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Description
2 Agreement and Plan of Merger, dated February 5, 1996, between
HUBCO and Lafayette. (Incorporated by reference from HUBCO's
Registration Statement on Form S-4, File No. 333-01829 filed
with the Commission (Annex A to the Joint Proxy
Statement-Prospectus)).
99.1 Report of Arthur Andersen LLP
EXHIBIT 99.1
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareholders and Board of Directors of
Lafayette American Bank and Trust Company:
We have audited the consolidated balance sheets of Lafayette American Bank and
Trust Company and subsidiaries as of December 31, 1995 and 1994, and the related
consolidated statements of operations, changes in shareholders' equity and cash
flows for each of the three years in the period ended December 31, 1995. These
financial statements are the responsibility of the Bank's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Lafayette American Bank and
Trust Company and subsidiaries as of December 31, 1995 and 1994, and the results
of their operations and their cash flows for each of the three years in the
period ended December 31, 1995, in conformity with generally accepted accounting
principles.
ARTHUR ANDERSEN LLP
New York, New York
January 17, 1996 (except with respect to the matter discussed in Note 1, as to
which the date is February 6, 1996 and the matter discussed in Note 13, as to
which the date is February 2, 1996)
