Hudson United Bancorp
1000 MacArthur Blvd.
Mahwah, NJ 07430
(NYSE:HU)

AT THE COMPANY:
Kenneth T. Neilson                                                                                James W. Nall
Chairman, President & CEO                                                                  Executive Vice President & CFO
(201) 236-2631                                                                                         (201) 236-2769

FOR IMMEDIATE RELEASE:   March 2, 2004

Hudson United Bancorp Announces
Investigation Settlement and Issuance of $20
Million of Trust Preferred Securities

MAHWAH, N.J. — March 2, 2004 — Hudson United Bancorp (“the Company”) (NYSE:HU) today reported that Hudson United Bank has entered into a complete settlement with the New York County District Attorney’s Office concerning the District Attorney’s investigation of the Company’s banking business for correspondent customers. The Company previously issued a press release on January 2, 2004 related to this investigation. Under the terms of the agreement, the Company agreed to pay $3.5 million to the City of New York and $1.5 million to the District Attorney’s office for the costs of the investigation. The Company, which recently upgraded its compliance program, agreed to continue its corrective actions. The $5 million will be charged against fourth quarter 2003 results of operations.

The correspondent business primarily served customers organized in or operating from South America, Central America and the Caribbean. It was acquired by the Company in June 2002, as part of its assumption of the deposit liabilities of Connecticut Bank of Commerce from the Federal Deposit Insurance Corporation as Receiver for CBC, and was closed in November 2003, in light of this investigation. The Company is cooperating fully with the investigation.

The Company is adjusting its previously released financial results for the fourth quarter of 2003 and the full year 2003 to include the settlement. The Company’s adjusted fourth quarter net income after tax totaled $24.5 million or $0.54 per fully diluted share. Adjusted net income for the year 2003 totaled $112.3 million or $2.50 per fully diluted share.

The Company plans to issue $20 million of Trust Preferred Securities as a participant in a Pooled Capital Program. The Trust Preferred Securities will be priced at 3 month LIBOR plus a spread and are callable at the Company’s option in whole or in part after year 5 on any coupon date. The Company anticipates receipt of the proceeds on March 17, 2004.

Hudson United Bancorp is the multi-state bank holding company for Hudson United Bank, which has 205 offices in New Jersey, New York, Connecticut and Pennsylvania.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about future earnings, expected costs and charges and market conditions. These statements may be identified by forward-looking terminology including “expect”, “is” or variations of such terms. Such forward-looking statements involve risks and uncertainties. Actual results may differ materially from the results discussed in these forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, additional expenses, costs or limitations relating to unanticipated losses of customers, business or deposits, inability to close the additional funding program in a timely manner or at all and the effects of legal and regulatory provisions applicable to the Company. The Company assumes no obligation for updating any such forward-looking statements at any time. Information on potential factors that could cause the Company’s financial results to differ from the forward-looking statements also is included from time to time in the Company’s public reports filed with the SEC.

HUDSON UNITED BANCORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

(in thousands)	December 31, 2003			December 31, 2002
ASSETS
Cash and due from banks	$	272,636		$	257,694
Interest bearing due from banks		41,358			17,886
TOTAL CASH AND CASH EQUIVALENTS	$	313,994		$	275,580
Investment securities available for sale, at market value	$	2,706,185		$	2,616,452
($1,813,247 and $1,071,994 in market value pledged at
December 31, 2003 and December 31, 2002 respectively)
Loans and leases:
Commercial and financial	$	2,137,499		$	1,784,444
Commercial real estate mortgages		993,937			908,910
Consumer		1,033,693			1,031,475
Credit card		326,713			340,173
Sub-total	$	4,491,842		$	4,065,002
Residential mortgages		167,913			274,473
TOTAL LOANS AND LEASES	$	4,659,755		$	4,339,475
Less: Allowance for loan and lease losses		(67,846	)		(71,929	)
NET LOANS AND LEASES	$	4,591,909		$	4,267,546
Premises and equipment, net		125,168			100,991
Other real estate owned		977			1,315
Core deposit and other intangibles, net of amortization		22,664			26,423
Goodwill		81,068			73,733
Investment in separate account bank owned life insurance		144,126			137,158
Other assets		114,567			155,063
TOTAL ASSETS	$	8,100,658		$	7,654,261
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest bearing	$	1,328,586		$	1,304,289
NOW, money market, and savings		3,009,821			3,119,233
Time deposits		1,904,952			1,776,179
TOTAL DEPOSITS	$	6,243,359		$	6,199,701
Customer repurchase agreements		101,628			109,919
Other borrowings		819,591			359,767
TOTAL BORROWINGS		921,219			469,686
Other liabilities		238,117			270,095
Subordinated debt		239,773			282,253
TOTAL LIABILITIES		7,642,468			7,221,735
Stockholders' Equity:
Common stock, no par value	$	92,788		$	92,788
Additional paid-in capital		311,310			313,467
Retained earnings		237,046			177,544
Treasury stock, at cost		(176,505	)		(169,871	)
Restricted stock & other		(3,899	)		(2,456	)
Accumulated other comprehensive income		(2,550	)		21,054
TOTAL STOCKHOLDERS' EQUITY	$	458,190		$	432,526
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	8,100,658		$	7,654,261

HUDSON UNITED BANCORP AND SUBSIDIARIES

Consolidated Statements of Income

	Three Months Ended December 31,
(in thousands, except share data)	2003		2002
INTEREST AND FEE INCOME:
Loans and leases	$	65,962	$	69,508
Investment securities		29,705		35,896
Other		373		473
TOTAL INTEREST AND FEE INCOME	$	96,040	$	105,877
INTEREST EXPENSE:
Deposits	$	11,830	$	20,897
Borrowings		3,000		1,596
Subordinated and other debt		6,106		6,715
TOTAL INTEREST EXPENSE	$	20,936	$	29,208
NET INTEREST INCOME	$	75,104	$	76,669
PROVISION FOR LOAN AND LEASE LOSSES,
PORTFOLIO LOANS		5,500		7,500
NET INTEREST INCOME AFTER PROVISION FOR
LOAN AND LEASE LOSSES	$	69,604	$	69,169
NONINTEREST INCOME:
Retail service fees	$	9,639	$	9,259
Credit card fee income		9,198		7,261
ATM and debit card fees		1,735		1,948
Separate account bank owned life insurance income		2,154		1,862
Trust income		702		842
Income from Landfill Investments		4,453		--
Other income		8,404		7,368
Securities gains		4,784		3,026
Impairment on mortgage related servicing assets		--		(2,815	)
TOTAL NONINTEREST INCOME	$	41,069	$	28,751
NONINTEREST EXPENSE:
Salaries and benefits	$	29,764	$	23,499
Occupancy expense		7,527		7,375
Equipment expense		4,649		5,098
Outside services - data processing		7,554		6,519
Outside services - other		6,055		7,969
Amortization of intangibles		1,152		909
Marketing expense		1,130		563
Deposit and other insurance		575		490
Telephone expense		1,374		1,670
Correspondent Bank Resolutions		7,421		--
Expense from Landfill Investments		6,001		--
Other		6,393		3,734
TOTAL NONINTEREST EXPENSE	$	79,595	$	57,826
INCOME BEFORE INCOME TAXES	$	31,078	$	40,094
PROVISION FOR INCOME TAXES		6,596		11,819
NET INCOME		24,482		28,275
NET INCOME PER COMMON SHARE:
Basic	$	0.55	$	0.63
Diluted	$	0.54	$	0.63
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		44,798		45,025
Diluted		44,974		45,209

HUDSON UNITED BANCORP AND SUBSIDIARIES

Consolidated Statements of Income

	Year to Date December 31,
(in thousands, except share data)	2003			2002
INTEREST AND FEE INCOME:
Loans and leases	$	271,691		$	303,558
Investment securities		120,456			124,058
Other		1,982			2,387
TOTAL INTEREST AND FEE INCOME	$	394,129		$	430,003
INTEREST EXPENSE:
Deposits	$	57,419		$	97,807
Borrowings		12,705			6,517
Subordinated and other debt		24,747			24,922
TOTAL INTEREST EXPENSE	$	94,871		$	129,246
NET INTEREST INCOME	$	299,258		$	300,757
PROVISION FOR LOAN AND LEASE LOSSES,
PORTFOLIO LOANS		26,000			30,000
PROVISION FOR LOAN AND LEASE LOSSES,
ACCELERATED DISPOSITION		--			21,333
TOTAL PROVISION FOR LOAN AND LEASE LOSSES		26,000			51,333
NET INTEREST INCOME AFTER PROVISION FOR
LOAN AND LEASE LOSSES	$	273,258		$	249,424
NONINTEREST INCOME:
Retail service fees	$	37,812		$	36,895
Credit card fee income		28,672			25,214
ATM and debit card fees		7,330			7,552
Separate account bank owned life insurance income		6,968			7,783
Trust income		2,599			3,079
Income from Landfill Investments		11,169			--
Other income		31,933			26,869
Impairment on mortgage related servicing assets		(2,004	)		(2,815	)
Securities (losses) gains		5,117			3,545
Trading asset gain		3,449			--
Dime merger termination payment		--			77,000
TOTAL NONINTEREST INCOME	$	133,045		$	185,122
NONINTEREST EXPENSE:
Salaries and benefits	$	101,790		$	94,771
Occupancy expense		30,266			29,180
Equipment expense		18,533			20,327
Outside services - data processing		29,654			26,939
Outside services - other		23,725			26,034
Amortization of intangibles		4,340			4,015
Marketing expense		3,295			5,513
Deposit and other insurance		2,233			2,238
Telephone expense		5,850			6,099
Expenses related to Dime termination payment		--			8,293
Correspondent Bank Resolutions		7,421			--
Expense from Landfill Investments		14,948			--
Other		14,240			23,717
TOTAL NONINTEREST EXPENSE	$	256,295		$	247,126
	$	150,008		$	187,420
PROVISION FOR INCOME TAXES		37,687			64,214
	$	112,321		$	123,206
NET INCOME PER COMMON SHARE:
Basic	$	2.51		$	2.73
Diluted	$	2.50		$	2.72
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		44,737			45,159
Diluted		44,892			45,349

Supplemental Information

Hudson United Bancorp

($ in thousands)	1Q03	2Q03	3Q03	4Q03	Y-T-D
End of Period
Total Securities	2,938,287	2,955,047	2,937,860	2,706,185	NA
Total Assets	7,809,894	7,984,039	7,975,364	8,100,658	NA
Total Deposits	6,184,103	6,231,529	6,268,791	6,243,359	NA
Total Stockholders’ Equity	428,077	454,252	457,720	458,190	NA
Shares Outstanding	44,546	44,758	44,793	44,799	NA
Average Balance Sheet
Commercial/Consumer Loans	4,009,151	4,046,966	4,129,256	4,263,574	4,112,981
Residential Real Estate Mortgage	257,472	234,447	210,162	180,689	220,453
Total Loans and Leases	4,266,623	4,281,413	4,339,418	4,444,263	4,333,434
Other Earning Assets	2,816,650	3,138,072	3,173,428	3,002,802	3,033,633
Total Earning Assets	7,083,273	7,419,485	7,512,846	7,447,065	7,367,067
Total Assets	7,681,301	7,976,962	8,081,105	8,045,908	7,945,700
Noninterest Bearing Deposits	1,242,933	1,265,760	1,292,808	1,295,963	1,274,562
Interest Bearing Deposits	4,881,873	4,860,333	4,941,595	4,836,357	4,880,083
Common Equity	427,279	440,576	428,020	453,886	437,487
Loan Portfolio Composition
Commercial and Financial	1,761,415	1,806,113	1,854,680	2,137,498	NA
Commercial Real Estate Mortgage	923,710	931,368	957,421	993,937	NA
Consumer	1,028,953	1,037,039	1,034,092	1,033,694	NA
Credit Card	306,526	322,088	332,826	326,713	NA
Sub-total	4,020,604	4,096,608	4,179,019	4,491,842	NA
Residential Real Estate Mortgage	242,286	227,512	195,483	167,913	NA
Total Loans and Leases	4,262,890	4,324,120	4,374,502	4,659,755	NA
Allowance for Losses	71,888	67,151	67,664	67,846	NA
Net Loans and Leases	4,191,002	4,256,969	4,306,838	4,591,909	NA
End of Period
Nonaccruing Loans	15,240	14,660	15,961	13,217	NA
Restructured Loans	0	0	0	0	NA
Other Real Estate	1,044	1,200	1,108	977	NA
Total Nonperforming Assets	16,284	15,860	17,069	14,194	NA
90 Days Past Due & Accruing	20,499	19,044	20,432	16,683	NA
Net Charge Offs	7,040	6,805	5,890	5,362	NA
Intangible Assets	99,101	98,495	97,418	103,732	NA

($ in thousands)	1Q02	2Q02	3Q02	4Q02	Y-T-D
End of Period
Total Securities	1,985,191	2,385,952	2,491,426	2,616,452	NA
Total Assets	6,825,218	7,489,410	7,443,536	7,654,261	NA
Total Deposits	5,938,316	6,279,804	6,333,311	6,199,701	NA
Total Stockholders' Equity	376,936	416,636	436,648	432,526	NA
Total Shares Outstanding	45,209	45,276	45,120	45,023	NA
Average Balance Sheet
Commercial/Consumer Loans	3,747,114	3,803,274	3,931,781	3,980,989	3,865,016
Residential Real Estate Mortgage	505,592	466,261	432,340	286,837	422,184
Total Loans and Leases	4,252,706	4,269,535	4,364,121	4,267,826	4,287,200
Other Earning Assets	1,948,432	2,170,173	2,374,520	2,542,924	2,260,958
Total Earning Assets	6,201,138	6,439,708	6,738,641	6,810,750	6,548,158
Total Assets	6,921,896	7,074,998	7,425,789	7,437,723	7,216,121
Noninterest Bearing Deposits	1,142,343	1,174,662	1,235,350	1,251,228	1,201,289
Interest Bearing Deposits	4,839,988	4,907,447	5,055,630	4,989,692	4,948,894
Common Equity	395,091	387,877	423,025	432,798	409,838
Loan Portfolio Composition
Commercial and Financial	1,665,708	1,684,353	1,741,511	1,784,444	NA
Commercial Real Estate Mortgage	868,798	866,931	868,419	908,910	NA
Consumer	955,861	1,030,184	1,020,866	1,031,475	NA
Credit Card	287,057	315,561	320,556	340,173	NA
Sub-total	3,777,424	3,897,029	3,951,352	4,065,002	NA
Residential Real Estate Mortgage	486,566	448,259	298,731	274,473	NA
Total Loans and Leases	4,263,990	4,345,288	4,250,083	4,339,475	NA
Allowance for Losses	71,330	71,999	71,837	71,929	NA
Net Loans and Leases	4,192,660	4,273,289	4,178,246	4,267,546	NA
End of Period
Nonaccruing Loans	16,894	17,484	17,102	15,357	NA
Restructured Loans	0	0	0	0	NA
Other Real Estate	1,635	1,096	1,295	1,315	NA
Total Nonperforming Assets	18,529	18,580	18,397	16,672	NA
90 Days Past Due & Accruing	20,199	17,524	20,267	19,790	NA
Net Charge Offs	26,455	6,831	7,666	7,408	NA
Intangible Assets	85,205	101,552	100,350	100,156	NA

Supplemental Information

Hudson United Bancorp

($ in thousands)	1Q03			2Q03			3Q03			4Q03			Y-T-D
Condensed Income Statement
Interest Income		102,410			101,365			94,314			96,040			394,129
Interest Expense		27,206			25,167			21,562			20,936			94,871
Net Interest Income		75,204			76,198			72,752			75,104			299,258
Provision for Possible Loan and    Lease Losses		7,000			7,000			6,500			5,500			26,000
Income from Landfill Investments(2)		0			2,404			4,312			4,453			11,169
Total Non interest Income		26,883			29,606			35,487			41,069			133,045
Net Revenue		102,087			105,804			108,239			116,173			432,303
OREO Expense		188			65			198			94			545
Amortization of Intangibles Expense		1,056			1,055			1,077			1,152			4,340
Expense from Landfill Investments (2)		0			3,598			5,349			6,001			14,948
Total Non interest Expense		54,657			58,999			63,044			79,595			256,295
Pre-tax Income		40,430			39,805			38,695			31,078			150,008
Provision for Income Taxes		12,129			10,670			8,292			6,596			37,687
Net Income		28,301			29,135			30,403			24,482			112,321
Fully-taxable Equivalent Adjustment		1,020			1,046			1,072			956			4,094
Performance
Return on Average Assets		1.49	%		1.46	%		1.49	%		1.21	%		1.41	%
Return on Average Equity		26.86	%		26.52	%		28.18	%		21.40	%		25.67	%
Basic Earnings Per Share	$	0.63		$	0.65		$	0.68		$	0.55		$	2.51
Diluted Earnings Per Share	$	0.63		$	0.65		$	0.68		$	0.54		$	2.50
Weighted Average Shares - Basic		44,756			44,614			44,777			44,798			44,737
Weighted Average Shares - Diluted		44,966			44,829			44,994			44,974			44,892
Net Interest Margin		4.36	%		4.18	%		3.90	%		4.05	%		4.12	%
Capital Information
Tier 1 Leverage Ratio (1)		5.83	%		5.87	%		6.03	%		6.36	%		NA
Tier 1 Risk-Based Capital (1)		8.20	%		8.39	%		8.72	%		8.69	%		NA
Total Risk-Based Capital (1)		13.55	%		13.56	%		13.90	%		13.63	%		NA
Common Equity	$	428,077		$	454,252		$	457,720		$	458,190			NA
Common Shares Outstanding		44,546			44,758			44,793			44,799			NA
Book Value Per Share (Common)	$	9.61		$	10.15		$	10.22		$	10.23			NA

($ in thousands)	1Q02			2Q02			3Q02			4Q02			Y-T-D
Condensed Income Statement
Interest Income		105,943			109,059			110,667			107,012			432,681
Interest Expense		34,381			33,746			33,454			30,343			131,924
Net Interest Income		71,562			75,313			77,213			76,669			300,757
Provision for Possible Loan and     Lease Losses		28,833			7,500			7,500			7,500			51,333
Noninterest Income		102,583			26,342			27,445			28,752			185,122
Net Revenue		174,145			101,655			104,658			105,421			485,879
OREO Expense		519			0			54			150			723
Amortization of Intangibles Expense		952			952			1,202			909			4,015
Noninterest Expense		74,274			56,600			58,425			57,827			247,126
Pre-tax Income		71,038			37,555			38,733			40,094			187,420
Provision for Income Taxes		28,757			12,018			11,620			11,819			64,214
Net Income		42,281			25,537			27,113			28,275			123,206
Fully-taxable Equivalent Adjustment		839			882			897			1,148			3,766
Performance
Return on Average Assets		2.48	%		1.45	%		1.45	%		1.51	%		1.71	%
Return on Average Equity		43.40	%		26.41	%		25.43	%		25.92	%		30.06	%
Efficiency Ratio		41.67	%		54.34	%		54.22	%		53.37	%		49.58	%
Basic Earnings Per Share	$	0.93		$	0.56		$	0.60		$	0.63		$	2.73
Diluted Earnings Per Share	$	0.93		$	0.56		$	0.60		$	0.63		$	2.72
Weighted Average Shares - Basic		45,235			45,237			45,131			45,025			45,159
Weighted Average Shares - Diluted		45,542			45,538			45,346			45,209			45,349
Net Interest Margin		4.73	%		4.75	%		4.60	%		4.53	%		4.65	%
Capital Information
Tier 1 Leverage Ratio (1)		5.94	%		5.80	%		5.71	%		5.87	%		NA
Tier 1 Risk-Based Capital (1)		8.16	%		7.67	%		7.98	%		8.00	%		NA
Total Risk-Based Capital (1)		10.82	%		12.80	%		13.24	%		13.25	%		NA
Common Equity		376,936			416,636			436,648			432,526			NA
Common Shares Outstanding		45,209			45,280			45,120			45,023			NA
Book Value Per Share (Common)	$	8.34		$	9.20		$	9.68		$	9.61			NA

(1) Capital ratios are preliminary numbers

(2) Amounts have been reallocated in Q2 and Q3 to conform to current presentation