Hudson United Bancorp Releases Preliminary Earnings Announcement
MAHWAH, NJ--(BUSINESS WIRE)--Oct. 5, 2000--Hudson United Bancorp (NYSE:HU) today announced that earnings for the quarter ending September 30, 2000 will be below analyst expectations due to slower revenue growth and an unplanned increase in operating expenses.
The Company indicated that it expects to report third quarter earnings in a range of $.50 to $.52 per diluted share compared with
$.55 in the third quarter of last year. Current quarter results represent a return on average assets of approximately 1.4% and a return on average equity of approximately 21%.
"While we are disappointed by these quarterly results", said Kenneth T. Neilson, Chairman, President and CEO, "we have made significant progress on the implementation of the new systems, integration of acquisitions and restaffing after the Dime termination. We spent substantial funds and manpower resources resolving temporary challenges as they arose, with much of it having to do with data processing and operations. Together with our outsource providers, we have reached an agreement on how we will operate going forward and how future issues will be addressed.
While wehad originally expected a current period financial adjustment from our outsource providers, we have negotiated a beneficial contract modification which provides, among other things, for a multi-million dollar discount over the next 2 1/2 years, an extended term and a 2-year reduced termination fee."
The Company's authorization to repurchase up to 10 million shares remains in place with 2,134,341 shares having been repurchased under that authorization.
"In November 1999, the Company underwent a conversion to a new operating system and closed one purchase accounting acquisition", stated Mr. Neilson. "In December 1999, two pooling of interest mergers were completed with JeffBanks, Inc. and Southern Jersey Bancorp while during that same period, a merger of equals with Dime Bancorp was in progress but was subsequently terminated in April 2000. During this period, a large number of executives and staff left our employ. At the same time, processing issues arose with our outsource providers. While we are still evaluating our plans, we currently expect operating earnings will be approximately at the same level for the fourth quarter." |
