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Hudson United Bancorp (NYSE: HU)
Hudson United Bancorp (formerly HUBCO Inc.) (NYSE: HU)
1000 MacArthur Blvd Mahwah, N.J. 07430
201-236-2600
Chairman, President & CEO:
Kenneth T. Neilson
Employees: 1,455
Net Interest Income (FYE December 31, 1998): $254.2 million
Net Income (FYE December 31, 1998): $23.2 million
Profit Margin (QE March 31): 7.1%
Assets: $6.778 billion
Total Loans (1998): $3.386 billion
Connecticut Loans (1998): $783 million
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Business New Haven
5/31/1999
By: BNH
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Signs are changing in Connecticut. The familiar names on some banks like Lafayette-American, First Union and Dime are now gone and replaced with signs proclaiming the presence of Hudson United Bank.
Recently the bank holding company, Hudson United Bancorp, which was renamed in April from HUBCO Inc., announced plans to consolidate its three bank subsidiaries into one network under the name Hudson United Bank in order to provide a cohesive network of banks and services for customers.
More than 160 branches previously operating under the names Lafayette-American Bank & Trust, Bank of the Hudson and Hudson United Bank will now operate under the new name of Hudson United Bank.
Acquisitions are a sign of the times and since 1990 the company has pursued an aggressive strategy resulting in 26 acquisitions - eight consummated last year alone. Previous Connecticut purchases include Lafayette-American, Hometown Bancorporation and Westport Bancorp in 1996.
The company marked its entrance into Hartford County last year with its purchase of the Bank of Southington. Hudson United also acquired Wallingford's Dime Financial Corp. as well as eight Connecticut branches of First Union.
Acquisitions have by no means been limited to Connecticut: The company has purchased several banks in New York and New Jersey as well, including the 1998 acquisitions of the Bank of the Hudson, IBS Financial Corp. and MSB Bancorp Inc.
At the quarter ended March 31, Hudson United Bancorp had assets of $7.0 billion and total stockholder equity of $427.2 million.
Hudson United offers several products to its commercial and retail customers in the tri-state (New York, New Jersey, Connecticut) area, including 24-hour banking, loans via phone, investment and insurance products, consumer loans and mortgages, and services and loans to the commercial market. Services include cash management, international services, SBA loans, asset-based loans and credit-card programs .
Hudson United also is involved in a joint venture named United Financial Services Inc. in association with United National Bank for check processing and other data-processing services.
Results for the fiscal year ended December31 reported interest income of $468.5 million, representing a one-percent decrease from prior year interest income of $471.2 million. Net interest income was almost level with last year at $254.2 million, vs. $254.9 million a year ago.
Net interest income after provision for possible loan losses was $239.8 million, likewise representing a one-percent decline from $242.2 million for 1997. Net income of $23.2 million (56 cents per diluted share) represented a 67-percent decrease from 1997 net income of $69.8 million ($1.60 per diluted share). Results for 1998 were impacted by lower interest rates, non-performing loan charges and merger and restructuring costs.
So far, 1999 indicates some sign of improvement in results at the first quarter ended March 31. After-tax net income of $24.6 million (61 cents per diluted share) compared favorably to the year before figure of $14.9 million (35 cents per diluted share). Net interest income remained level for the quarter at $62.5 million.
In addition to the name change of the holding company to Hudson United Bancorp, its stock moved from NASDAQ (symbol HUBC) to the NYSE (symbol HU) effective May 3. Hudson United's stock closed May 21 at 33 3/4.
The company has paid a three-percent stock dividend in 1996, 1997 and 1998. The regular quarterly dividend rose to 25 cents per share during 1998, compared to 19 cents in 1997 and 18 cents in 1996. The dividend declared in April 1999 remains at 25 cents, with payable date June 1 for shareholders of record at May 17.
Signs of the strengthening of Hudson United's ties to Connecticut emerged with a May announcement of its entrance into a strategic alliance with Advest Group Inc. of Hartford. Under the agreement for an initial term of four years, Hudson will exclusively provide banking services to Advest clients.
Also, in a separate agreement, Hudson agreed to acquire loans and specific other assets of Advest Bank & Trust, and the company will assume deposit liabilities. (Advest Bank & Trust will continue operating under its bank charter and will offer trust services to its clients.)
In March Hudson United announced its purchase of $150 million in accounts from First International Bank. The Hartford branch of First International will operate as a branch of Hudson United. For Hudson United Bancorp, signs are continuing to change in Connecticut.
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