Hudson United Bancorp Reports 26% Increase in Earnings Per Share
MAHWAH, N.J.--(BUSINESS WIRE)--July 15, 1999--Hudson United
Bancorp (NYSE:HU) today reported record second quarter earnings of
$25.5 million or $0.63 per share on a diluted basis, compared with
operating earnings of $21.0 million or $0.50 per share for the same
period in 1998.
These results represent a 26% increase in diluted earnings per
share. Return on Average Assets was 1.45% and Return on Average Equity
was 23.29% for the 1999 second quarter. During the second quarter, the
Company closed its acquisition of Little Falls Bancorp and signed
definitive agreements to acquire JeffBanks, Inc. and Southern Jersey
Bancorp. The Company also announced that it will enter into a
strategic alliance with The Advest Group, Inc. and that Hudson United
Bank will acquire the loans and other financial assets, as well as
assume the deposit liabilities of Advest Bank.
"We are pleased to announce another quarter of record financial
results," said Ken Neilson, Hudson United Bancorp's Chairman,
President and CEO. "The recently announced acquisitions and alliance
will expand our franchise and create growth opportunities for the
Company."
For the six months ended June 30, 1999, net income was $50.1
million and diluted earnings per share was $1.24. In the corresponding
1998 period, operating earnings were $38.3 million and diluted
earnings per share amounted to $0.91. Return on Average Assets and
Return on Average Equity were 1.49% and 23.19% for the first six
months of 1999.
Net interest income for the second quarter of 1999 was $67.8
million compared to $63.9 million for the second quarter of 1998. The
net interest margin was 4.15% and 4.12% for the second quarter of 1999
and 1998, respectively. For the six months ended June 30, 1999, net
interest income amounted to $130.3 million and the net interest margin
was 4.15%. For the same period in 1998, net interest income was $126.4
million and the net interest margin was 4.19%. 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 $16.0 million and $32.5 million for the
second quarter and six months of 1999, respectively. This compares to
$14.3 million and $25.8 million reported for the same periods in 1998.
Noninterest income as a percent of total net revenue was 20% for the
first six months of 1999 and 17% for the first six months of 1998.
These increases reflect higher income from the Shoppers Charge and
mortgage divisions and increased sales of investment products.
Noninterest expenses for the second quarter of 1999 were $43.1
million compared to $42.0 million in the second quarter of 1998. This
increase reflects the higher cost of supporting our expanding business
lines and is more than offset by a 7% increase in net revenue for the
same time frame. The efficiency ratio in the second quarter of 1999
was 47.3%, down from 49.8% in the second quarter of 1998. Noninterest
expenses, for the six months of 1999, amounted to $82.8 million
compared to $86.2 million for the same 1998 period. This decline
reflects cost savings achieved from the 1998 acquisitions. The
efficiency ratio for the first six months of 1999 was 46.7% compared
to 52.6% for the same 1998 period.
At June 30, 1999, non-performing assets totaled $20.9 million
(0.29% of total assets) compared to $24.6 million at December 31,
1998. The Allowance for Possible Loan Losses totaled $55.7 million at
quarter end and represented 289% of non-performing loans and 1.57% of
total loans. The provision for possible loan losses was $2.5 million
for the second quarter of 1999 and $2.8 million for the second quarter
of 1998. The loan loss provision for the six months ended June 30,
1999 and 1998, respectively, was $5.0 and $9.1 million. 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 the Company's.
Hudson United Bancorp's total assets at June 30, 1999 were $7.2
billion compared to $6.8 billion at year-end 1998. Total loans, at
June 30, 1999 were $3.5 billion, an increase of $151 million from
December 31, 1998. At June 30, 1999, total deposits were $5.0 billion,
Stockholders' equity was $423 million and book value per common share
was $10.70. All regulatory capital ratios exceed those necessary to be
considered a well-capitalized institution, with Hudson United
Bancorp's leverage capital ratio at approximately 6.3%. |
