Hudson United Bancorp Reports 18% Increase in Earnings Per Share
MAHWAH, N.J.--(BUSINESS WIRE)--October 14, 1999--Hudson United
Bancorp (NYSE:HU) today reported record third quarter earnings of
$25.7 million or $0.65 per share on a diluted basis, compared with
operating earnings 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 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,
Hudson United Bancorp's Chairman, President and CEO. "Our agreement to
merge 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 30, 1999, net income was
$75.7 million and diluted earnings per share 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.
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
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
31, 1998. The Allowance for Possible Loan Losses totaled $54.8 million
at quarter end and represented 213% of non-performing loans 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 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 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 was $405 million and book
value per common share was $10.42. All regulatory 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 and
Connecticut. During the third quarter, the Company agreed to acquire
Lyon 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 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. |
