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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 14, 2000
HUDSON UNITED BANCORP
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(Exact Name of Registrant as Specified in Charter)
NEW JERSEY
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(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)
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<PAGE>
Item 5. Other Events.
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On April 14, 2000, the Registrant issued a press release announcing its
earnings expectations for first quarter 2000. A copy of the press release is
attached as Exhibit 99(a) to this Current Report on Form 8-K and is incorporated
by reference herein.
Item 7. Exhibits
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Exhibit 99(a) - Press Release dated April 14, 2000.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registration has duly caused this report to be signed on its behalf by the
undersigned thereto duly authorized.
HUDSON UNITED BANCORP
Dated: April 17, 2000 By: D.LYNN VAN BORKULO-NUZZO
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Name: D. Lynn Van Borkulo-Nuzzo, Esq.
Title: Executive Vice President
Corporate Secretary
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Index to Exhibits
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Exhibit 99(a) - Press Release dated April 14, 2000.
AT THE COMPANY:
Kenneth T. Neilson Chris A. McFadden
Chairman, President & CEO Chief Financial Officer
(201) 236-2631 (201) 236-6144
MEDIA CONTACTS:
Carol Parish Gerard Carney
TorranceCo TorranceCo
(212) 521-5208 (212) 521-5233
FOR IMMEDIATE RELEASE
April 14, 2000
Hudson United Bancorp Reports a 9% Increase in Earnings
Per Share for the First Quarter and a Return on Equity of 23.5%
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Mahwah, New Jersey, April 14, 2000 --Hudson United Bancorp
(NYSE:HU)(the Company, or HUB) today reported first quarter net income of $29.9
million or $0.58 per share on a diluted basis, compared with net income of $28.8
million or $0.53 per diluted share for the same period in 1999. The Company's
first quarter 2000 return on average equity was 23.5% compared to 19.4% for the
first quarter of 1999. Return on average assets was 1.27% and 1.34% for the
first quarter 2000 and 1999 periods, respectively. During the first quarter of
2000, the Company completed the system conversions for JeffBanks, Inc. and
Southern Jersey Bancorp and it is expected that resultant cost savings will be
fully reflected in second quarter results.
"We are pleased with our strong first quarter earnings and the
successful integration of our recent acquisitions," said Ken Neilson, Hudson
United Bancorp's Chairman, President and CEO. "We will continue to focus on
enhancing profitability and growing our core businesses."
Net interest income for the first quarter of 2000 was $87.7 million
compared to $80.8 million for the first quarter of 1999. The increase in net
interest income was due primarily to higher average interest-earning assets in
the 2000 period compared to 1999. The net interest margin was 4.05% for the
first three months of 2000 and 4.10% for the first three months of 1999. While
the net interest margin declined in the first quarter to first quarter
comparison, it improved by 13 basis points from 3.92% in the fourth quarter of
1999.
Noninterest income, excluding security gains (losses) increased 14% to
$23.7 million in the first quarter of 2000 compared to $20.8 million for the
corresponding 1999 period. Increases in Shoppers Charge fee income, sales of
alternative investment products and commercial lending related fees were the
main factors underlying the year over year increase. Noninterest income as a
percentage of net revenue (defined as noninterest income, excluding security
gains (losses), divided by net interest income plus noninterest income,
excluding security gains (losses)) was 21% for the first quarter of 2000 and 20%
for the first quarter of 1999.
Noninterest expenses were $60.3 million for the first three months of
2000 and $56.2 million for the three month period ended March 31, 1999. The
increased expenses were due mainly to the expansion in the Shoppers Charge
business and Commercial Lending businesses. The efficiency ratio was 50.1% for
the first quarter of 2000 and 51.0% for the first quarter of 1999. The impact of
cost savings from the recent computer conversions should have a favorable impact
on the efficiency ratio commencing in the second quarter.
At March 31, 2000, non-performing assets totaled $58.9 million (.63% of
total assets) compared to $53.1 million at December 31, 1999. The allowance for
possible loan losses totaled $98.1 million at period-end March 2000 and
represented 180% of non-performing loans and 1.74% of total loans. At December
31, 1999, the allowance for possible loan losses totaled $98.7 million and
represented 201% of non-performing loans and 1.74% of total loans. The provision
for possible loan losses was $6.0 million and $4.5 million for the first quarter
of 2000 and 1999, respectively. The higher provision reflects the credit quality
of our portfolio including the acquired companies utilizing the Company's
reserve methodology.
Hudson United Bancorp's total assets at March 31, 2000 were $9.3
billion compared to $9.7 billion at year-end 1999. At March 31, 2000, total
loans were $5.6 billion and total deposits were $6.1 billion. Total
stockholders' equity was $520 million and book value per common share was $10.11
at March 31, 2000. All regulatory capital ratios exceed those necessary to be
considered a well-capitalized institution.
Hudson United Bancorp is the multi-state bank holding company for
Hudson United Bank which has over 200 offices in New Jersey, New York,
Connecticut and Pennsylvania.
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 such 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,
and failure to realize expected cost savings or revenue enhancements from
acquisitions. Hudson United Bancorp assumes no obligation for updating any such
forward-looking statements at any time.
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<TABLE>
<CAPTION>
Hudson United Bancorp
Financial Highlights
(In thousands, except per share data)
Three Months Ended March 31
INCOME STATEMENT 2000 1999
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<S> <C> <C>
Net Interest Income $87,687 $80,770
Provision for Possible Loan Losses 6,000 4,521
Noninterest Income 23,715 20,820
Security Gains (Losses) (50) 2,179
Noninterest Expense 60,299 56,155
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Pretax Income 45,053 43,093
Tax Expense 15,180 14,342
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Net Income $29,873 $28,751
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Basic Earnings Per Share $0.58 $0.54
Diluted Earnings Per Share 0.58 0.53
Return on Average Assets 1.27% 1.34%
Return on Average Equity 23.46% 19.40%
Weighted Average Shares - Basic (1) 51,627 52,882
Weighted Average Shares - Diluted (1) 51,953 53,994
Cash Earnings $32,603 $31,538
Cash Earnings Per Share - Diluted (1) $0.63 $0.58
Cash Return on Average Assets 1.38% 1.47%
Cash Return on Average Equity 25.53% 21.28%
</TABLE>
(1) Weighted Average Shares Outstanding have been retroactively adjusted for the
effects of acquisitions accounted for as poolings of interest, stock dividends
and stock splits.
<PAGE>
Hudson United Bancorp
Financial Highlights
(In thousands)
<TABLE>
<CAPTION>
3/31/00 12/31/99
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SELECTED BALANCE SHEET DATA AT PERIOD-END
<S> <C> <C>
Loans $5,632,827 $5,679,581
Allowance for Possible Loan Losses 98,110 98,749
Loans, net of the Allowance 5,534,717 5,580,832
Investment Securities 3,063,174 3,366,526
Interest-Earning Assets 8,696,489 9,046,107
Total Assets 9,318,420 9,686,286
Deposits 6,073,566 6,455,345
Borrowings 2,430,527 2,383,666
Long Term Debt 257,300 257,300
Stockholders' Equity 519,711 519,166
SELECTED AVERAGE BALANCE SHEET DATA FOR THE QUARTER ENDED
3/31/00 3/31/99
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Loans $5,614,096 $4,864,819
Interest-Earning Assets 8,820,814 8,131,880
Deposits 6,285,660 6,600,420
Total Assets 9,455,092 8,678,152
Common Equity 512,249 600,940
</TABLE>
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