HUBCO, Inc. Reports a 49% Increase in Earnings Per Share
MAHWAH, N.J.--(BUSINESS WIRE)--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%.
|
