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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 19, 1999
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
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(Address of principal executive offices)
(201) 236-2600
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(Registrant's telephone number, including area code)
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<PAGE>
Item 5. Other Events
On April 13, 1999, HUBCO, Inc. ("HUBCO") issued a press release
reporting first quarter earnings of $24.6 million or $0.61 per share on a
diluted basis, compared with operating earnings of $17.2 million or $0.41 per
share for the same period in 1998. Including merger-related and restructuring
charges, first quarter 1998 earnings were $14.9 million and $0.35 per diluted
share. Return on average assets and return on average equity for first quarter
1999 were 1.52% and 23.10%, respectively.
HUBCO's total assets at March 31, 1999 were $7.0 billion. Loans totaled
$3.4 billion, deposits were $4.9 billion and stockholders' equity was $427
million.
HUBCO, Inc. is a multi-state bank holding company with over 160 offices
in New Jersey, New York and Connecticut. HUBCO recently consolidated its three
banking subsidiaries, Hudson United Bank, Lafayette American Bank, and Bank of
the Hudson, into a single bank operating under the name Hudson United Bank.
A copy of HUBCO's press release is attached to this Form 8-K as an
Exhibit and is incorporated herein by reference.
<PAGE>
Item 7. Exhibits
Exhibit 99 Press Release dated April 13, 1999.
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.
D. LYNN VAN BORKULO-NUZZO
Dated: April 19, 1999 By: ____________________________
D. Lynn Van Borkulo-Nuzzo,
Executive Vice President
HUBCO , INC.
1000 MacArthur Blvd.
Mahwah, NJ 07430
(NASDAQ:HMC)
AT HUBCO:
Kenneth T. Neilson Joseph F. Hurley
Chairman, President & CEO Executive Vice President & CFO
(201) 236-2631 (201) 236-6141
FOR IMMEDIATE RELEASE
April 13, 1999
HUBCO, Inc. Reports a 49% Increase in Earnings Per Share
Mahwah, New Jersey, April 13, 1999 -- HUBCO, Inc.
(NASDAQ:HUBC) , today reported record first quarter earnings of $24.6 million or
$0.61 per share on a diluted basis, compared with operating earnings of $17.2
million or $0.41 per share for the same period in 1998. These results represent
a 49% increase in diluted earnings per share. Including merger-related and
restructuring charges, first quarter 1998 earnings were $14.9 million and $0.35
per diluted share. HUBCO's Return on Average Assets was 1.52% and Return on
Average Equity was 23.10% for the 1999 quarter.
"We are pleased to announce the strong financial results
reflecting the successful integration of our recent acquisitions." said Ken
Neilson, HUBCO's Chairman and CEO. "The recently completed consolidation of our
three banking subsidiaries further enhances the customer convenience we deliver
within the Tristate market and will allow for branding of our customer
experience."
Net interest income was $62. 5 million in both the first
quarters of 1999 and 1998. HUBCO's net interest margin for the first quarter of
1999 was 4.16% compared to 4.27% in the first quarter of 1998 and 4.04% in the
fourth quarter of 1998. Noninterest income increased to $16.6 million, which is
up from $11.5 million in the 1998 first quarter and also reflects an 18%
increase over the 1998 fourth quarter. These increases reflect higher income
from the Shoppers Charge and mortgage divisions and increased sales of
investment products.
Noninterest expenses for the first quarter of 1999 declined
10% to $39.7 million from $44.3 million reported in 1998 excluding merger costs.
This decrease primarily reflects cost savings resulting from the integration of
the 1998 acquisitions. HUBCO's efficiency ratio (a ratio of noninterest expense
to recurring tax equivalent income) was 46.2% for the first quarter of 1999,
compared to 46.9% in the fourth quarter of 1998 and 55.5% in the first quarter
of 1998.
At March 31, 1999, non-performing assets totaled $20.1 million
(0.29% of total assets) and non-performing loans were $19.2 million (0.56% of
total loans). Non-performing assets were $24.6 million at December 31, 1998. The
Allowance for Possible Loan Losses totaled $54.5 million at quarter end and
represented 284% of non-performing loans and 1.59% of total loans. The provision
for possible loan losses was $2.5 million for the first quarter of 1999 and $6.3
million for the first quarter of 1998. The decline was primarily attributable to
the inclusion in the 1998 period of a $3.5 million provision taken by the former
Bank of the Hudson to bring its reserve policy in line with HUBCO's.
HUBCO's total assets at March 31, 1999 were $7.0 billion.
Loans totaled $3.4 billion, deposits were $4.9 billion and stockholders' equity
was $427 million. All regulatory capital ratios exceed those necessary to be
considered a well-capitalized institution, with HUBCO's leverage capital ratio
at approximately 6. 7%.
HUBCO, Inc. is a multi-state bank holding company with over
160 offices in New Jersey, New York and Connecticut. The Company recently
consolidated its three banking subsidiaries -- Hudson United Bank, Lafayette
American Bank and Bank of the Hudson - into a single bank operating under the
name Hudson United Bank. The Company also recently announced its intention to
change its name to Hudson United Bancorp, subject to approval by shareholders at
HUBCO's annual meeting on April 21.
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by the use of words as "believes" , "expects", and
similar words or variations. Such statements are not historical facts and
involve certain risks and uncertainties. Actual results may differ materially
from the results discussed in these forward-looking statements. Factors that may
cause a difference include, but are not limited to, changes in interest rates,
economic conditions, deposit and loan growth, loan loss provisions, customer
retention, failure to realize expected cost savings or revenue enhancements from
acquisitions, or failure of the company's Year 2000 compliance program to
effectively address Year 2000 computer problems. HUBCO assumes no obligation for
updating any such forward-looking statements at any time.
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<TABLE>
<CAPTION>
HUBCO, INC.
Financial Highlights
(in thousands, except per share data)
Three Months Ended
March 31
1999 1998
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<S> <C> <C>
Net Interest Income $62,547 $62,540
Provision for Possible Loan Losses 2,500 6,278
Security Gains 914 3,050
Noninterest Income 16,565 11,493
Noninterest Expense 39,679 44,250
Merger-related and Restructuring Charges (1) - 3,265
Pretax Income 37,847 23,290
Tax Expense 13,246 8,356
Net Income 24,601 14,934
Basic Earnings Per Share .62 .36
Diluted Earnings Per Share .61 .35
Diluted Earnings Per Share excluding Merger-related and Restructuring .61 .41
Charges
Return on Average Assets 1.52% 0.95%
Return on Average Equity 23.10% 11.84%
Weighted Average Shares - Basic (2) 39,983 41,016
Weighted Average Shares - Diluted (2) 40,596 42,356
As Of March 31
1999 1998
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Total Assets $7,046,067 $6,528,972
Total Loans 3,424,314 3,597,638
Total Deposits 4,931,967 5,314,501
Stockholders' Equity 427,169 515,180
</TABLE>
(1) 1998 includes $3.3 million pre-tax ($2.3 million after-tax) of merger-
related and restructuring charges resulting from 1998 acquisitions.
(2) Weighted Average Shares Outstanding have been retroactively adjusted
for the effects of acquisitions accounted for as poolings of interest,
stock dividends and stock splits.
