Hudson United Bancorp Reports 18% Increase in Earnings Per Share.MAHWAH, N.J.--(BUSINESS WIRE)--October 14, 1999-- Hudson Hudson, towns, United States Hudson. 1 Industrial town (1990 pop. 17,233), Middlesex co., E central Mass., on the Assabet River, in an apple-growing region; settled c.1699, inc. 1866. United Bancorp (NYSE NYSE See: New York Stock Exchange :HU) today reported record third quarter earnings of $25.7 million or $0.65 per share on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, compared with operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before of $22.5 million or $0.55 per diluted share for the same period in 1998. Return on Average Assets was 1.43% and Return on Average Equity was 24.79% for the 1999 third quarter. For the third quarter 1998, the Company had a net loss of $20.1 million, or $0.50 per share, including merger related restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. and loss on assets held for sale ("special charges"). "We are pleased to announce record earnings for the third quarter and nine month periods. Our last pooling transaction was completed in the third quarter of 1998. These results continue to demonstrate our strong internal growth over the past four quarters." said Ken Neilson Neil·son , William Allan 1869-1946. British-born American scholar and lexicographer noted for his editions of Shakespeare (1906 and 1942) and as the editor in chief of Webster's Second International Dictionary (1934). , Hudson United Bancorp's Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Our agreement to merge See mail merge and concatenate. with Dime Bancorp, Inc. will further enhance shareholder value and create a combined company with a strong competitive position in its marketplace." For the nine months ended September September: see month. 30, 1999, net income was $75.7 million and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of was $1.89. Return on Average Assets was 1.47% and Return on Average Equity was 23.71% for the first nine months of 1999. In the corresponding 1998 period, operating earnings were $60.8 million and diluted earnings per share amounted to $1.46. For the 1998 nine month period, the Company had a net loss of $0.6 million, or $0.02 per share, including special charges. Net interest income for the third quarter of 1999 was $67.1 million compared to $64.4 million for the third quarter of 1998. The net interest margin was 4.01% and 4.06% for the third quarter of 1999 and 1998, respectively. For the nine months ended September 30, 1999, net interest income amounted to $197.4 million and the net interest margin was 4.10%. For the same period in 1998, net interest income was $190.8 million and the net interest margin was 4.15%. The higher net interest income in the 1999 periods compared to 1998 was primarily due to an increased level of interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin . Noninterest income was $18.8 million and $51.4 million for the third quarter and nine months of 1999, respectively. This compares to $13.5 million and $39.3 million reported for the same periods in 1998. Noninterest income as a percent of total net revenue was 23% for the third quarter of 1999, up from 18% for the full year 1998. These increases reflect higher income from Shoppers Charge and mortgage divisions and increased sales of alternative investment products. Noninterest expenses for the third quarter of 1999 were $42.9 million compared to $39.9 million in the third quarter of 1998. This increase reflects the higher cost of supporting our expanding business lines. The increase in expenses was more than offset by higher revenue as the third quarter 1999 efficiency ratio of 45.6% compared favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to the 46.5% efficiency ratio in the same period last year. Noninterest expenses, for the nine months of 1999, amounted to $125.7 million compared to $126.1 million for the same 1998 period. The efficiency ratio for the first nine months of 1999 was 46.4% compared to 50.5% for the same 1998 period. At September 30, 1999, non-performing assets totaled $27.4 million (0.38% of total assets) compared to $24.6 million at December December: see month. 31, 1998. The Allowance for Possible Loan Losses totaled $54.8 million at quarter end and represented 213% of non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. and 1.55% of total loans. The provision for possible loan losses was $3.3 million for the third quarter of 1999 and $2.8 million for the third quarter of 1998. The loan loss provision for the nine months ended September 30, 1999 and 1998, respectively, was $8.3 and $11.9 million. The decline for the nine month period was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk 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 the Company's. Hudson United Bancorp's total assets at September 30, 1999 were $7.2 billion compared to $6.8 billion at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1998. Total loans, at September quarter-end were $3.5 billion, an increase of $147 million from December 31, 1998. At September 30, 1999, total deposits were $4.8 billion, stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. was $405 million and book value per common share Book Value Per Common Share A measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Formula: was $10.42. All regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. capital ratios exceed those necessary to be considered a well-capitalized institution. Hudson United Bancorp's leverage capital ratio was 5.8% reflecting the purchase of treasury shares which will be reissued in the pending JeffBanks, Inc. acquisition. Hudson United Bancorp is the multi-state bank holding company for Hudson United Bank which has 170 offices in New Jersey, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). . During the third quarter, the Company agreed to acquire Lyon Lyon English Lyons City (pop., 1999: city, 445,452; metro. area, 1,348,932), east-central France. Located at the confluence of the Rhône and Saône rivers, it was founded as the Roman military colony Lugdunum in 43 BC (see Credit Corporation, a commercial finance company. This acquisition and the Company's previously announced transactions with The Advest Group, Inc., JeffBanks, Inc. and Southern Jersey Bancorp are expected to close in the fourth quarter. With the pending fourth quarter acquisitions, the company will expand its franchise into Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York and expects to have total assets in excess of $9.7 billion at year-end 1999. In September, Hudson United Bancorp and Dime Bancorp, Inc. announced the signing of a definitive agreement to merge. The agreement provides for the combined company to be known as Dime United Bancorp, Inc., a bank holding company. The principal subsidiary is to be a commercial bank, named DimeBank. Each share of Hudson United Bancorp will be converted into one share of Dime United Bancorp, Inc. Subject to certain conditions, including shareholder and regulatory approvals, the transaction is expected to close in the first quarter of 2000. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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, failure to realize expected cost savings or revenue enhancements revenue enhancement An increase in revenues, especially by way of increased taxes. Revenue enhancement includes reducing taxpayer deductions and eliminating tax credits. from acquisitions, or failure of the company's Year 2000 compliance program to effectively address Year 2000 computer problems. Hudson United Bancorp assumes no obligation for updating any such forward-looking statements at any time. -0-
Hudson United Bancorp
Financial Highlights
(In thousands, except per share data)
Three Months Ended September 30,
INCOME STATEMENT 1999 1998 1998(1)
----------------- ---- ---- -------
Net Interest Income $67,145 $64,441 $64,441
Provision for Possible
Loan Losses 3,300 2,791 2,791
Noninterest Income 18,848 13,501 13,501
Security Gains 848 16 16
Loss on Assets Held
for Sale - 23,303 -
Noninterest Expense 42,873 39,878 39,878
Merger Related
Restructuring Charges - 38,508 -
Pretax Income (Loss) 40,668 (26,522) 35,289
Tax Expense (Benefit) 14,995 (6,389) 12,757
------ ------ ------
Net Income (Loss) $25,673 $(20,133) $22,532
====== ====== ======
Basic Earnings (Loss)
Per Share $.66 $(.50) $.56
Diluted Earnings (Loss)
Per Share .65 (.50) .55
Return on Average Assets 1.43% (1.17)% 1.31%
Return on Average Equity 24.79% (16.52)% 18.49%
Weighted Average Shares -
Basic (2) 38,924 40,358 40,358
Weighted Average Shares -
Diluted (2) 39,338 40,358 41,243
(1) Excludes merger related and restructuring charges and loss on
assets held for sale.
(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.
Hudson United Bancorp
Financial Highlights
(In thousands, except per share data)
Nine Months Ended September 30,
INCOME STATEMENT 1999 1998 1998(1)
----------------- ---- ---- -------
Net Interest Income $197,445 $190,844 $190,844
Provision for Possible
Loan Losses 8,300 11,890 11,890
Noninterest Income 51,384 39,291 39,291
Security Gains 2,832 3,850 3,850
Loss on Assets Held for
Sale - 23,303 -
Noninterest Expense 125,680 126,100 126,100
Merger Related
Restructuring Charges - 66,953 -
Pretax Income 117,681 5,739 95,995
Tax Expense 41,945 6,388 35,185
------- ----- ------
Net Income (Loss) $75,736 $ (649) $60,810
======= ===== ======
Basic Earnings (Loss)
Per Share $1.92 $(.02) $1.49
Diluted Earnings (Loss)
Per Share 1.89 (.02) 1.46
Return on Average Assets 1.47% (0.01)% 1.23%
Return on Average Equity 23.71% (0.17)% 16.28%
Weighted Average Shares -
Basic (2) 39,524 40,725 40,725
Weighted Average Shares -
Diluted (2) 40,038 40,725 41,747
(1) Excludes merger related and restructuring charges and loss on
assets held for sale.
(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.
Hudson United Bancorp
Financial Highlights
(In thousands, except per share data)
9/30/99 12/31/98
SELECTED BALANCE SHEET
DATA AT PERIOD-END
Loans $3,533,896 $3,386,810
Allowance for Loan Losses 54,788 53,499
Loans, net of the Allowance for
Loan Losses 3,479,108 3,333,311
Investment Securities 3,127,879 2,895,596
Interest-Earning Assets 6,728,331 6,300,103
Total Assets 7,240,357 6,778,661
Deposits 4,828,724 5,051,390
Borrowings 1,772,110 821,593
Long Term Debt 200,000 200,000
Stockholders' Equity 405,013 456,815
9/30/99 9/30/98
SELECTED AVERAGE BALANCE SHEET
DATA FOR THE QUARTER ENDED
Loans $3,509,684 $3,515,404
Interest-Earning Assets 6,673,559 6,313,344
Deposits 4,884,598 5,327,345
Total Assets 7,117,564 6,825,451
Common Equity 410,877 483,490
SELECTED AVERAGE BALANCE SHEET
DATA FOR NINE MONTHS ENDED
Loans $3,461,541 $3,559,241
Interest-Earning Assets 6,461,772 6,170,598
Deposits 4,894,069 5,266,054
Total Assets 6,900,854 6,624,143
Common Equity 427,032 499,326
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion