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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 20, 1997
HUBCO, INC.
(Exact name of registrant as specified in its charter)
New Jersey
(State or other jurisdiction of incorporation)
1-10699 22-2405746
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(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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<PAGE>
Item 5. Other Events
HUBCO, on January 20, 1997, issued a press release announcing its
fourth quarter and year-end results. HUBCO announced that for the fourth quarter
of 1996, net income was $3,460,000 or $.16 per share, but excluding all special
charges, net income was $11,119,000 or $.48 per share and for the year ending
December 31, 1996 net income was $21,497,000, or $.93 per share, but
$39,266,000, or $1.69, excluding all special charges. The press release is
attached as an Exhibit to this Form 8-K.
HUBCO is a bank holding company headquartered in New Jersey, whose
principal operating subsidiaries are Hudson United Bank, which operates 58
branches in Northern New Jersey, and Lafayette American Bank and Trust Company,
which operates 27 banking offices located in Fairfield, Middlesex and New Haven
Counties in Connecticut.
Item 7. Exhibits
99(a) Press Release dated January 20, 1997
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: January 23, 1996 By:
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D. Lynn Van Borkulo-Nuzzo,
Executive Vice President
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INDEX TO EXHIBIT
Exhibit No. Description
- ---------- -----------
99(a) Press Release dated January 20, 1997
HUBCO, INC.
1000 MacArthur Blvd.
Mahwah, NJ 07430
(NASDAQ: HUBC)
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD, INC.
Kenneth T. Neilson, Chairman Kerry Thalheim/Regina Lenihan
Pres. & CEO - (201) 236-2631 675 Third Avenue
D. Lynn Van Borkulo-Nuzzo New York, NY 10017
Executive Vice President (212) 661-8030
(201) 236-2641
FOR IMMEDIATE RELEASE
January 20, 1997
HUBCO Releases 1996 Fourth Quarter and Full Year Earnings
Mahwah, New Jersey, January 20, 1997--HUBCO, Inc. (NASDAQ:HUBC), the
third largest New Jersey based commercial banking company today reported
earnings for the fourth quarter of 1996 and for the full year. The 1996 results
reflect the acquisitions during the year of Growth Financial Corp., Lafayette
American Bank and Trust Company, and Westport Bancorp, Inc. which were all
accounted for as poolings of interest for all periods. The results also reflect
the acquisitions of Hometown Bancorporation, Inc. and UST Bank/Connecticut since
their respective closing dates of August 31 and November 28, since these
acquisitions were accounted for as purchases. The fourth quarter results include
merger related and restructuring charges of $5,319,000 after tax, related to the
consummation of the Westport Bancorp acquisition and five branch consolidations
in Connecticut resulting from overlaps of HUBCO's four Connecticut acquisitions
this year. The fourth quarter results also include a special provision for Loan
Losses of $4,000,000 ($2,340,000 after tax), reflecting HUBCO's reserve
methodology and the new Connecticut bank subsidiary. HUBCO's results are
reported here both before and after all such fourth quarter and year to date
charges including the Lafayette restructuring costs expensed in the third
quarter and the special provision for loan losses in the fourth quarter.
Fully diluted earnings per share for the fourth quarter of 1996
excluding merger related, restructuring and other special charges increased
41.2% to $.48 per share ($11,119,000) from $.34 per share ($8,056,000) for the
same period last year. Including all the special charges described above,
earnings declined to $3,460,000 or $.16 per share fully diluted. Excluding all
special charges in the fourth quarter HUBCO's return on average assets was 1.46%
and return on average equity was 21.54%.
For the year ended December 31, 1996, fully diluted earnings per share
before merger related, restructuring and other special charges increased 17.4%
to $1.69 per share ($39,266,000), from $1.44 per share ($34,565,000) for the
same period last year. Including all the special charges to date, earnings
declined to $.93 per share or $21,497,000. Excluding all special charges during
1996 HUBCO's return on average assets was 1.38% and the return on average equity
was 19.07%.
HUBCO's net interest margin for the fourth quarter of 1996 was 4.80%
and was 5.05% for the twelve month period. This compares with 5.29% and 5.34%
for the comparable periods in 1995.
Non-interest income, excluding security gains, totaled $8,407,000 for
the fourth quarter and $29,289,000 for the twelve month period. This represents
an increase of 18.7% for the quarter and 7.5% for the full year.
Overhead expenses, excluding merger related, restructuring and special
charges, for the fourth quarter of 1996 decreased 2.2% to $24,398,000 from
$24,957,000 in the fourth quarter of 1995. For the full year ended December 31,
1996, excluding all special charges overhead expenses decreased 9.2% to
$93,409,000 from $102,842,000. The merger related, restructuring and special
charges on an after tax basis totaled $5,319,000 for the fourth quarter and
$15,429,000 for the full year. All merger related and restructuring charges
related to HUBCO's four Connecticut acquisitions have now been expensed. The
computer conversions for three of the acquisitions are completed with the
UST/Connecticut conversion scheduled for the first quarter of 1997. The related
cost savings from these acquisitions are expected to be reflected in HUBCO's
future results. HUBCO's efficiency ratio, excluding merger related,
restructuring and special charges was 55.31% for the fourth quarter and 56.04%
for the full year.
Fourth quarter core earnings include a benefit from tax settlements and
reserves no longer deemed necessary in an amount similar to last quarter. Fourth
quarter core earnings do not yet reflect all of the cost savings from the
consolidations in Connecticut.
Despite the effect of purchase accounting acquisitions which bring
additional non-performing loans and assets to HUBCO when compared to prior
periods, total non-performing assets of $37,459,000 (1.20% of assets) were down
from $41,495,000 last quarter and in line with $37,143,000 a year ago.
Non-performing loans of $31,747,00 (1.7% of loans) were in line with $34,401,000
last quarter and up from $27,754,000 a year ago. The Allowance for Possible Loan
Losses totaled $35,153,000 which represented 111% of non-performing loans and
121% of non-accruing loans at December 31, 1996.
HUBCO's total assets at December 31, 1996 were $3.1 billion. Loans
totaled $1.9 billion, deposits were $2.6 billion and stockholders equity was
$206.3 million. All regulatory capital ratios exceed those necessary to be
considered a well capitalized institution.
HUBCO, INC. is the bank holding company for Hudson United Bank which
operates 58 branches in New Jersey and Lafayette American Bank and Trust Company
which operates 27 branches (after consolidations) in Connecticut.
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HUBCO, INC.
Financial Highlights
(in thousands, except per share data)
Quarter Ended
December
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1996 1995
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Net Interest Income $33,912 $33,662
Provision for Possible Loan Losses 5,620 2,500
Net Income 3,460 8,056
Net Income, excluding all special charges 11,119 8,056
Net Income Per Share, fully diluted .16 .34
Net Income Per Share, fully diluted
excluding all special charges .48 .34
Weighted Average Common and Common
Equivalent Shares Outstanding 23,033 24,003
Year Ended
December 31
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1996 1995
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Net Interest Income $131,354 $133,211
Provision for Possible Loan Losses 12,295 9,515
Net Income 21,497 34,565
Net Income, excluding all special charges 39,266 34,565
Net Income Per Share, fully diluted .93 1.44
Net Income Per Share, fully diluted
excluding all special charges 1.69 1.44
Weighted Average Common and Common
Equivalent Shares Outstanding 23,225 24,116
At December 31
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1996 1995
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Total Assets $3,115,687 $2,778,416
Total Loans 1,884,355 1,652,022
Total Deposits 2,592,092 2,446,273
Stockholders' Equity 206,333 216,796
Weighted Average Shares Outstanding have been retroactively adjusted for the
effects of acquisitions accounted for as poolings of interest, stock dividends
and stock splits.
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