Hudson United Bancorp Reports a 9% Increase in Earnings Per Share for the First Quarter and a Return on Equity of 23.5
MAHWAH, N.J.--(BUSINESS WIRE)--April 14, 2000--Hudson United
Bancorp (NYSE:HU)(the Company, or HUB) today reported first quarter
net income of $29.9 million or $0.58 per share on a diluted basis,
compared with net income of $28.8 million or $0.53 per diluted share
for the same period in 1999. The Company's first quarter 2000 return
on average equity was 23.5% compared to 19.4% for the first quarter of
1999. Return on average assets was 1.27% and 1.34% for the first
quarter 2000 and 1999 periods, respectively. During the first quarter
of 2000, the Company completed the system conversions for JeffBanks,
Inc. and Southern Jersey Bancorp and it is expected that resultant
cost savings will be fully reflected in second quarter results.
"We are pleased with our strong first quarter earnings and the
successful integration of our recent acquisitions,"said Ken Neilson,
Hudson United Bancorp's Chairman, President and CEO. "We will continue
to focus on enhancing profitability and growing our core businesses.
Net interest income for the first quarter of 2000 was $87.7
million compared to $80.8 million for the first quarter of 1999. The
increase in net interest income was due primarily to higher average
interest-earning assets in the 2000 period compared to 1999. The net
interest margin was 4.05% for the first three months of 2000 and 4.10%
for the first three months of 1999. While the net interest margin
declined in the first quarter to first quarter comparison, it improved
by 13 basis points from 3.92% in the fourth quarter of 1999.
Noninterest income, excluding security gains (losses) increased
14% to $23.7 million in the first quarter of 2000 compared to $20.8
million for the corresponding 1999 period. Increases in Shoppers
Charge fee income, sales of alternative investment products and
commercial lending related fees were the main factors underlying the
year over year increase. Noninterest income as a percentage of net
revenue (defined as noninterest income, excluding security gains
(losses), divided by net interest income plus noninterest income,
excluding security gains (losses)) was 21% for the first quarter of
2000 and 20% for the first quarter of 1999.
Noninterest expenses were $60.3 million for the first three
months of 2000 and $56.2 million for the three month period ended
March 31, 1999. The increased expenses were due mainly to the
expansion in the Shoppers Charge business and Commercial Lending
businesses. The efficiency ratio was 50.1% for the first quarter of
2000 and 51.0% for the first quarter of 1999. The impact of cost
savings from the recent computer conversions should have a favorable
impact on the efficiency ratio commencing in the second quarter.
At March 31, 2000, non-performing assets totaled $58.9 million
(.63% of total assets) compared to $53.1 million at December 31, 1999.
The allowance for possible loan losses totaled $98.1 million at
period-end March 2000 and represented 180% of non-performing loans and
1.74% of total loans. At December 31, 1999, the allowance for possible
loan losses totaled $98.7 million and represented 201% of
non-performing loans and 1.74% of total loans. The provision for
possible loan losses was $6.0 million and $4.5 million for the first
quarter of 2000 and 1999, respectively. The higher provision reflects
the credit quality of our portfolio including the acquired companies
utilizing the Company's reserve methodology.
Hudson United Bancorp's total assets at March 31, 2000 were $9.3
billion compared to $9.7 billion at year-end 1999. At March 31, 2000,
total loans were $5.6 billion and total deposits were $6.1 billion.
Total stockholders' equity was $520 million and book value per common
share was $10.11 at March 31, 2000. All regulatory capital ratios
exceed those necessary to be considered a well-capitalized
institution. |
