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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) April 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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<PAGE>
Item 5. Other Events
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HUBCO, Inc., ("HUBCO") on April 15, 1998, announced its first quarter
1998 earnings.
First quarter fully diluted earnings per share increased to $0.48 per
share from $0.47 in 1997 including merger related costs. Excluding $2.3 million
of merger related and restructuring charges, fully diluted earnings per share
were up 17% to $0.55 per share versus $0.47 per share for the same period last
year. This resulted in a Return on Average Assets of 1.73% and a Return on
Average Equity of 26.17% for the quarter compared to 1.47% and 21.31% for the
1997 period, respectively, excluding merger costs.
The merger related and restructuring charges relate to consummation of
HUBCO's acquisition of The Bank of Southington, which was accounted for as a
pooling of interests. HUBCO's first quarter 1998 results also reflect
consummation of HUBCO's acquisition of Security National Bank, which closed on
February 6, 1998 and was accounted for as a purchase.
HUBCO's net interest margin for the first quarter of 1998 was 5.28%
compared to 4.96% last year. Other income, excluding security gains, increased
6% during the first quarter of 1998. Excluding non-recurring 1997 items, other
income increased 20% driven by significantly higher fee income in the trust and
Shoppers Charge divisions.
Overhead expenses for the first quarter of 1998 were $25.1 million,
excluding merger related charges, compared with $24.2 million a year ago. This
increase is due to additional staffing and other costs related to the planning
and integration of acquired or soon to be acquired companies. HUBCO's efficiency
ratio (a ratio of overhead expense to recurring tax equivalent income) was 53.9%
for the first quarter of 1998.
Total non-performing assets of $41.08 million (1.35% of assets) were up
from $37.20 million a year ago and from $38.94 million at year end. The increase
is related primarily to the mortgage portfolios which are collateralized by real
property and, therefore, losses should be mitigated by the value of such
collateral. The Allowance for Possible Loan Losses totaled $40.34 million, up
from $37.16 million a year ago and $39.24 million at December 31, 1997,
representing 107% of non-performing loans and 2.20% of the loan portfolio as of
March 31, 1998.
HUBCO's total assets at March 31, 1998 were $3.05 billion. Loans
totaled $1.84 billion, deposits were $2.45 billion and stockholders' equity was
$200.3 million.
Item 7. Exhibits
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99(a) Press Release dated April 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: April 16, 1998 By: KENNETH T. NEILSON
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Kenneth T. Neilson, Chairman
President and Chief Executive Officer
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INDEX TO EXHIBIT
Exhibit No. Description
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99(a) Press Release dated April 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
D. Lynn Van Borkulo-Nuzzo New York, NY 10017
Executive Vice President (212) 661-8030
(201) 236-2641
FOR IMMEDIATE RELEASE
April 15, 1998
HUBCO, INC. REPORTS STRONG FIRST QUARTER RESULTS
Mahwah, New Jersey, April 15, 1998--HUBCO, Inc. (NASDAQ:HUBC), today
reported a 17% increase in first quarter core earnings which exclude $2.3
million of merger related and restructuring charges. These costs relate to the
consummation of the Bank of Southington acquisition that was accounted for on a
pooling basis of accounting. The results also reflect the acquisition of
Security National Bank under the purchase method of accounting from the closing
of that transaction on February 6, 1998. The results are reported here both
before and after all such charges.
First quarter fully diluted earnings per share increased to $0.48 per
share ($11.0 million) from $0.47 ($11.7 million) in 1997 including merger
related costs. Excluding merger costs, fully diluted earnings per share were up
17% to $0.55 per share ($12.6 million) versus $0.47 per share ($11.7 million)
for the same period last year. This resulted in a Return on Average Assets of
1.73% and a Return on Average Equity of 26.17% for the quarter compared to 1.47%
and 21.31% for the 1997 period, respectively, excluding merger costs.
HUBCO's net interest margin for the first quarter of 1998 was 5.28%
compared to 4.96% last year. Other income, excluding security gains, increased
6% during the first quarter of 1998 to $8.08 million on a reported basis.
Excluding non-recurring 1997 items, other income increased 20% driven by
significantly higher fee income in the trust and Shoppers Charge divisions.
Overhead expenses for the first quarter of 1998 were $25.1 million,
excluding merger related charges, compared with $24.2 million a year ago. This
increase was primarily attributable to additional staffing and other costs
related to the planning and integration of acquired or soon to be acquired
companies. HUBCO's efficiency ratio (a ratio of overhead expense to recurring
tax equivalent income) was 53.9% for the first quarter of 1998.
Total non-performing assets of $41.08 million (1.35% of assets) were up
from $37.20 million a year ago and from $38.94 million at year end. The increase
is primarily related to the mortgage portfolios which are collateralized by real
property and, therefore, losses should be mitigated by the value of such
collateral. The Allowance for Possible Loan Losses totaled $40.34 million, up
from $37.16 million a year ago and $39.24 million at December 31, 1997,
representing 107% of non-performing loans and 2.20% of the loan portfolio as of
March 31, 1998.
HUBCO's total assets at March 31, 1998 were $3.05 billion. Loans
totaled $1.84 billion, deposits were $2.45 billion and stockholders' equity was
$200.3 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 61 branches in Northern New Jersey and Lafayette American Bank which
operates 34 branches in Connecticut. Two pending acquisitions in New York State
will add a third bank to the HUBCO holding company operating under the name Bank
of the Hudson with 32 branches. In addition, HUBCO announced the signing of
merger agreements with Community Financial Holding Corporation, Westmont, NJ,
Dime Financial Corporation of Wallingford, CT, and IBS Financial Corporation,
Cherry Hill, NJ. The company also has pending the purchase of 23 branches in the
tri-state area from First Union Corporation. After closing all pending
acquisitions, HUBCO, Inc. will have approximately 160 offices with total assets
of approximately 160 offices with total assets of approximately $7.0 billion and
will be the second largest financial institution headquartered in New Jersey.
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<TABLE>
<CAPTION>
HUBCO, INC.
Financial Highlights
(In thousands, except per share data)
Three Months Ended
March 31
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1998 1997
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<S> <C> <C>
Including merger related charges:
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Net Interest Income $35,017 $35,985
Provision for Possible Loan Losses 1,939 1,734
Net Income 10,970 11,668
Basic Earnings Per Share .48 .50
Diluted Earnings Per Share .48 .47
Excluding merger related charges:
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Net Income 12,590 11,668
Basic Earnings Per Share .56 .50
Diluted Earnings Per Share .55 .47
Weighted Average Shares Outstanding 22,644 23,024
As of March 31,
1998 1997
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Total Assets $3,050,967 $3,196,884
Total Loans 1,836,360 1,930,736
Total Deposits 2,448,016 2,557,806
Stockholders' Equity 200,269 217,192
</TABLE>
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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