Hudson United Bancorp Reports 27% Increase in Operating Earnings Per Share for the Fourth Quarter
MAHWAH, N.J.--(BUSINESS WIRE)--January 20, 2000--Hudson United
Bancorp (NYSE:HU) today reported fourth quarter operating earnings of
$30.3 million or $0.57 per share on a diluted basis, compared with net
income of $24.4 million or $0.45 per diluted share for the same period
in 1998. The Company had a net loss of $17.6 million for the 1999
fourth quarter which resulted from charges taken related to the
JeffBanks, Inc. and Southern Jersey Bancorp acquisitions. The charges
consisted of a $33.0 million pre-tax special provision for loan losses
to conform the reserve policies of the two institutions to that of the
Company and $37.2 million pre-tax in merger related restructuring
costs (collectively the "special charges"). Excluding the special
charges, return on average assets was 1.24% and return on average
equity was 21.86% for the 1999 fourth quarter.
"Our operating earnings for the fourth quarter reflect a
continuation of our strong financial performance," said Ken Neilson,
Hudson United Bancorp's Chairman, President and CEO. "As we enter the
new year, we are well positioned to continue to grow our businesses
and improve our profitability."
For the year ended December 31, 1999, operating earnings were
$117.2 million and diluted earnings per share was $2.20. Net income
for the full year 1999, including the special charges, was $69.3
million, or $1.30 per diluted share. Operating earnings for the full
year 1998 were $90.4 million and diluted earnings per share was $1.64.
Net income for the year ended December 31, 1998 amounted to $26.8
million, or $0.49 per diluted share. The 1998 period included a loss
on assets held for sale of $23.3 million pre-tax and merger related
restructuring costs of $69.7 million pre-tax (collectively the
"special charges"). For the full year 1999, excluding special charges,
return on average assets was 1.27% and return on average equity was
20.20%. These results do not reflect the benefit of cost saves related
to the two acquisitions which will be fully realized with the computer
conversions in the first quarter of 2000.
During the fourth quarter of 1999, the Company completed its
acquisition of assets and liabilities of Advest Bank and Trust and
consummated a strategic partnership with Advest, Inc. In addition, the
acquisitions of Lyon Credit Corporation, JeffBanks, Inc., and Southern
Jersey Bancorp were completed. The Jeffbanks and Southern Jersey
acquisitions were accounted for using the pooling method of accounting
and therefore results for the 1999 and 1998 prior periods have been
restated. |
