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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 15, 1998
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) 236-2600
(Registrant's telephone number, including area code)
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Item 5. Other Events
On January 15, 1998, HUBCO, INC. ("HUBCO") issued a press release reporting
record earnings for both the fourth quarter and the full year 1997. Net income
totaled $49.3 million compared to $21.5 million for 1996 as reported and $39.3
million in 1996 excluding special one-time charges. Diluted earnings per share
was $2.10 for the full year compared to $0.88 for 1996 as reported and
represented a 30% increase from 1996 excluding special one-time charges. Basic
earnings per share was $2.20 for 1997 compared to $0.91 as reported for 1996 and
$1.71 excluding special charges.
Fourth quarter 1997 net income totaled $12.9 million compared to $3.5 million
for 1996 as reported and $11.1 million in 1996 excluding special one-time
charges. Diluted earnings per share was $0.57 for the fourth quarter compared to
$0.14 for 1996 as reported and $0.46 excluding special charges. Basic earnings
per share was $0.59 for the fourth quarter compared to $0.14 as reported in 1996
and $0.49 excluding special charges.
HUBCO, Inc. is the bank holding company for Hudson United Bank which operates 57
branches in Northern New Jersey and Lafayette American Bank which operates 31
branches in Connecticut. Two pending acquisitions of New York based banks, which
are expected to close in early 1998, will add 32 branches to a new subsidiary
under the name Bank of the Hudson. After closing all pending acquisitions,
HUBCO, Inc. will have assets in excess of $4.5 billion and will be the fourth
largest financial institution headquartered in New Jersey.
The press release is attached as an Exhibit to this Form 8-K.
Item 7. Exhibits
99(a) Press Release dated January 15, 1998
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 15, 1998 By:D. LYNN VAN BORKULO-NUZZO
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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 15, 1998
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
Joseph F. Hurley, Executive New York, NY 10017
Vice President and CEO (212) 661-8030
(201) 236-6141
FOR IMMEDIATE RELEASE
January 15, 1998
HUBCO's 1997 Earnings Per Share Increase 30%
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Mahwah, NJ, January 15, 1998 -- HUBCO, Inc. (NASDAQ;HUBC) today reported
record earnings for both the fourth quarter and full year 1997. Net income
totaled $49.3 million compared to $21.5 million for 1996 as reported and $39.3
million in 1996 excluding special one-time charges. Diluted earnings per share
was $2.10 for the full year compared to $0.88 for 1996 as reported and
represented a 30% increase from 1996 excluding special one-time charges. Basic
earnings per share was $2.20 for 1997 compared to $0.91 as reported for 1996 and
$1.71 excluding special charges.
Fourth quarter 1997 net income totaled $12.9 million compared to $3.5
million for 1996 as reported and $11.1 million in 1996 excluding special
one-time charges. Diluted earnings per share was $0.57 for the fourth quarter
compared to $0.14 for 1996 as reported and $0.46 excluding special charges.
Basic earnings per share was $0.59 for the fourth quarter compared to $0.14 as
reported in 1996 and $0.49 excluding special charges.
Effective December 15, 1997, The Financial Accounting Standards Board
promulgated new standards regarding the computation of earnings per share. Under
the previously reported earnings per share methodology, HUBCO's 1997 earnings
per share was $2.13 compared with $0.90 for the full year 1996 and $1.69
excluding special charges. Fourth quarter 1997 earnings per share was $0.58
compared with $0.15 for 1996 and $0.48 excluding special charges.
HUBCO's Return on Average Assets was 1.79% for the fourth quarter and 1.66%
for the full year 1997. HUBCO's Return on Average Equity was 27.4% for the
fourth quarter and 24.4% for the full year 1997. Net interest income was $140
million for the full year 1997, a 7% increase over the $131 million reported in
1996. HUBCO's net interest margin was 5.20% for 1997 compared to 5.05% for 1996.
Non-interest income, excluding security gains, totaled $9.1 million for the
fourth quarter of 1997 and $32.6 million for the full year. These amounts
represent increases of 8% for the fourth quarter and 11% for the full year. The
growth arose primarily from the Shoppers Charge Program.
For the full year 1997, noninterest expense totaled $93.6 million,
approximating 1996 levels excluding one time charges ($116.2 million including
special charges). Noninterest expense was $23.4 million in the fourth quarter
1997 or 4% below 1996 excluding special charges. The Company's continued focus
on expense control resulted in a 50.9% efficiency ratio for the fourth quarter
and 50.4% for full year 1997. This compares with 55.3% for the fourth quarter
1996 and 56.0% for the full year 1996 excluding special one time charges.
Total non-performing assets of $37.5 million (1.23% of assets) were about
equal to a year ago and up slightly from last quarter. The Allowance for
Possible Loan Losses totaled $37.2 million providing 115% coverage of
non-accrual loans and 109% coverage of non-performing loans. The Allowance
represented 2.1% of total loans outstanding.
HUBCO's total assets at December 31, 1997 were $3.05 billion. Loans totaled
$1.8 billion and deposits were $2.3 billion. Capital at year end was $186
million. At December 31, 1997 HUBCO's Tier I Risk Based Capital Ratio was
10.27%, the Total Risk Based Capital Ratio was 16.62%, and the Leverage Capital
Ratio was 7.10%. 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 57 branches in Northern New Jersey and Lafayette American Bank which
operates 31 branches in Connecticut. Two pending acquisitions of New York based
banks, which are expected to close in early 1998, will add 32 branches to a new
subsidiary under the name Bank of the Hudson. After closing all pending
acquisitions, HUBCO, Inc. will have assets in excess of $4.5 billion and will be
the fourth largest financial institution headquartered in New Jersey.
*Effective today, HUBCO, Inc. common stock is included in the S&P Small Cap 600
index.
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<TABLE>
<CAPTION>
HUBCO, INC.
Financial Highlights
(in thousands, except per share data)
Three Months Ended
December 31
1997 1996* 1996
---- ----- ----
<S> <C> <C> <C>
Net Interest Income $ 33,767 $ 33,912 $ 33,912
Provision for Possible Loan Losses 2,300 1,620 5,620
Net Income 12,896 11,119 3,460
Basic Earnings Per Share .59 .49 .14
Diluted Earnings Per Share .57 .46 .14
Weighted Average
Common Shares Outstanding 22,007 22,331 22,331
Twelve Months Ended
December 31
1997 1996* 1996
---- ----- ----
Net Interest Income $ 140,244 $ 131,354 $ 131,354
Provision for Possible Loan Losses 7,327 8,295 12,295
Net Income 49,314 39,266 21,497
Basic Earnings Per Share 2.20 1.71 .91
Diluted Earnings Per Share 2.10 1.62 .88
Weighted Average
Common Shares Outstanding 22,157 22,508 22,508
At December 31
1997 1996
---- ----
Total Assets $ 3,046,505 $ 3,115,687
Total Loans 1,773,806 1,884,355
Total Deposits 2,314,399 2,592,092
Stockholders' Equity 186,140 206,333
</TABLE>
*Excluding merger related, restructuring and SAIF recapitalization charges.
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