BANKNORTH REPORTS FIRST QUARTER 1995 RESULTS.BURLINGTON, Vt.--(BUSINESS WIRE)-- April 17, 1995 -- Banknorth Group, Inc. (NASDAQ - BKNG) today announced earnings results for the first quarter of 1995. Net income for the three months ended March 31, 1995, was $5.2 million, or $.77 per share, compared to $2.4 million, or $.36 per share, for the first quarter of 1994, an increase of $2.8 million, or 116.4%. The annualized net returns on average assets and on average shareholders' equity for the first quarter of 1995 were 1.15% and 15.46%, respectively. Income before cumulative effect of accounting changes for the three months ended March 31, 1995, was $5.2 million compared to $2.3 million for the three months ended March 31, 1994. Making the announcement was William H. Chadwick, president and chief executive officer. Net interest income, $21.2 million in the first quarter of 1995, increased $4.1 million or 24.3%, over the first quarter of 1994. Other income, $5.0 million for the three months ended March 31, 1995, was up $446 thousand, or 9.7%, over the first quarter of 1994. The increase in other income for the first quarter of 1995 resulted primarily from having experienced net securities losses of $1.1 million in the first quarter of 1994. Total operating expenses, at $17.8 million for the three months ended March 31, 1995, were up $205 thousand, or 1.2%, from the level experienced in the first quarter of 1994. OREO and foreclosure expenses were $277 thousand for the first quarter of 1995, a reduction of $598 thousand, or 68.3%, from the 1994 first quarter level. On October 14, 1994, Banknorth consummated its acquisition of North American Bank Corporation, and its sole subsidiary, Farmington National Bank, Farmington, New Hampshire. The acquisition was accounted for as a purchase. "Banknorth enjoyed a strong net interest margin in the first quarter," reported Chadwick. "While we expect the net interest margin to decline somewhat during 1995 as deposit rates reprice upwards, we will attempt to offset sucha decline with continued expense control efforts," he said. Total assets as of March 31, 1995, were $1.9 billion, compared to $1.7 billion at March 31, 1994, an increase of 6.2%. 6 Banknorth Group, Inc., the largest banking company in Vermont, is a multi-bank holding company headquartered in Burlington, VT. The Company offers a full range of financial services through it's six subsidiary banks and mortgage company with offices throughout Northern New England.
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(SEE COMPARATIVE RESULTS ATTACHED)
Banknorth Group, Inc.
Comparative Financial Results
($ in thousands, except share and per share data)
NOTE: All prior period amounts, where necessary, have been
reclassified for the adoption of Statement of Financial Accounting
Standards No. 114 "Accounting by Creditors for Impairment of a Loan".
Income Statements For the three months ended March 31,
1995 1994 Change %
Interest income $36,800 $28,150 $8,650 30.7%
Interest expense 15,630 11,119 4,511 40.6%
Net interest income 21,170 17,031 4,139 24.3%
Provision for possible loan
losses 1,000 855 145 17.0%
------ ------ ----- ------
20,170 16,176 3,994 24.7%
Trust Income 1,822 1,959 (137) -7.0%
Service charges on deposit
accounts 1,247 1,209 38 3.1%
Mortgage servicing fees 696 544 152 27.9%
Credit card income 598 606 (8) -1.3%
Net securities transactions 7 (1,110) 1,117 -100.6%
Net loan transactions 92 567 (475) -83.8%
Net gain on sale of fixed and
other assets --- 213 (213) -100.0%
Gain on sale of mortgage servicing
rights --- --- - -
Other income 580 608 (28) -4.6%
Total other income 5,042 4,596 446 9.7%
Salaries 6,737 6,445 292 4.5% Employee benefits 1,787 1,769 18 1.0% Net occupancy 1,431 1,464 (33) -2.3% Equipment 1,351 1,355 (4) -0.3% Data processing 1,186 1,265 (79) -6.2% FDIC deposit insurance and other regulat 914 863 51 5.9% OREO and repossession 277 875 (598) -68.3% Other expense 4,145 3,587 558 15.6% Total other expenses 17,828 17,623 205 1.2% Income before income taxes 7,384 3,149 4,235 134.5% Income taxes 2,142 865 1,277 147.6% Income before cumulative effect of acctg changes 5,242 2,284 2,958 129.5% Accounting for securities available for sale, net of - 138 (138) -100.0% Accounting for income taxes - - - - NET INCOME $5,242 $2,422 $2,820 116.4% Per Share Information Wtd avg number of shares outstanding 6,804,425 6,804,425 - - Income before cumulative effect of accounting changes $0.77 $0.34 $0.43 126.5% Net income $0.77 $0.36 0.41 113.9% Shares outstanding 6,804,425 6,804,425 - - Book value $20.77 $19.08 1.69 8.9% Tangible book value 18.95 18.63 0.32 1.7% Dividends declared 1,565 1,021 544 53.3% Dividends declared per share 0.23 0.15 0.08 53.3% Dividend payout ratio 29.9% 41.7% -11.8% -28.3% Closing price at period end $23.50 $18.38 $5.12 27.9% Price / Earnings (LTM) 8 11 Price / Tangible book value 124% 99% Ratios Return on average total assets: Income before accounting changes 1.15% 0.56% 0.59% 105.4% Net income 1.15% 0.59% 0.56% 94.9% Return on average shareholders' equity: Income before accounting changes 15.46% 7.01% 8.45% 120.5% Net income 15.46% 7.44% 8.02% 107.8% Net interest income, f.t.e. basis $21,314 $17,145 $4,169 24.3% Net interest margin 4.85% 4.38% 0.47% 10.7% Efficiency ratio 66.61% 73.98% -7.37% -10.0% Expense ratio 2.88% 2.91% -0.03% -1.0%
Banknorth Group, Inc.
Comparative Financial Results
($ in thousands, except share and per share data)
For the year ended December 31,
1994 1993 Change %
Interest income $124,403 $113,178 $11,225 9.9% Interest expense 49,599 44,670 4,929 11.0% Net interest income 74,804 68,508 6,296 9.2%
Provision for possible loan
losses 3,210 4,700 (1,490) -31.7%
----- ----- ------ ------
71,594 63,808 7,786 12.2%
Trust Income 7,227 7,455 (228) -3.1% Service charges on deposit accounts 4,917 5,128 (211) -4.1% Mortgage servicing fees 2,509 2,040 469 23.0% Credit card income 2,835 2,751 84 3.1% Net securities transactions (2,234) 1,110 (3,344) -301.3% Net loan transactions 1,214 3,408 (2,194) -64.4% Net gain on sale of fixed and other assets 312 510 (198) -38.8% Gain on sale of mortgage servicing rights 664 - 664 100.0% Other income 2,527 2,355 172 7.3% Total other income 19,971 24,757 (4,786) -19.3% Salaries 25,990 26,734 (744) -2.8% Employee benefits 6,642 6,191 451 7.3% Net occupancy 5,345 5,027 318 6.3% Equipment 5,407 4,981 426 8.6% Data processing 5,027 4,840 187 3.9% FDIC deposit insurance and other regulatory 3,415 3,634 (219) -6.0% OREO and repossession 1,714 4,606 (2,892) -62.8% Other expense 16,388 15,856 532 3.4% Total other expenses 69,928 71,869 (1,941) -2.7% Income before income taxes 21,637 16,696 4,941 29.6% Income taxes 5,734 5,235 499 9.5% Income before cumulative effect of acctg changes 15,903 11,461 4,442 38.8% Accounting for securities available for sale, net of ta 138 - 138 100.0% Accounting for income taxes - (3,500) 3,500 -100.0% NET INCOME $16,041 $7,961 $8,080 101.5% Per Share Information Wtd avg number of shares outstanding 6,804,425 6,804,425 - - Income before cumulative effect of accounting changes $2.34 $1.68 $0.66 39.3% Net income $2.36 $1.17 1.19 101.7% Shares outstanding 6,804,425 6,804,425 - - Book value $19.92 $19.46 $0.46 2.4% Tangible book value 18.07 19.02 (0.95) -5.0% Dividends declared 4,083 2,720 1,363 50.1% Dividends declared per share 0.60 0.40 0.20 50.0% Dividend payout ratio 25.4% 34.2% -8.8% -25.7% Closing price at period end $22.00 $19.50 $2.50 12.8% Price / Earnings (LTM) 9 17 Price / Tangible book value 122% 103% Ratios Return on average total assets: Income before accounting changes 0.93% 0.72% 0.21% 29.2% Net income 0.94% 0.50% 0.44% 88.0% Return on average shareholders' equity: Income before accounting changes 12.14% 8.93% 3.21% 35.9% Net income 12.24% 6.20% 6.04% 97.4% Net interest income, f.t.e. basis $75,323 $69,105 $6,218 9.0% Net interest margin 4.65% 4.65% -0.00% -0.0% Efficiency ratio 69.98% 72.92% -2.94% -4.0% Expense ratio 2.86% 2.97% -0.11% -3.7%
Banknorth Group, Inc.
Comparative Financial Results
($ in thousands, except share and per share data)
Balance Sheets, Period End Balances as of
03-31-95 03-31-94 Change %
Loans $1,313,169 $1,149,032 $164,137 14.3% Loans held for sale 12,359 18,632 (6,273) -33.7% Securities available for sale 125,132 249,967 (124,835) -49.9% Investment securities 307,813 163,843 143,970 87.9% Money market assets 7,750 15,975 (8,225) -51.5% Total earning assets 1,766,223 1,597,449 168,774 10.6% Allowance for possible loan losses (21,553) (20,425) (1,128) -5.5% OREO and repossessed assets 770 4,333 (3,563) -82.2% Premises and Equipment 24,650 26,617 (1,967) -7.4% Goodwill and other intangibles 12,404 3,058 9,346 305.6% Other assets 80,157 142,848 (62,691) -43.9% Total assets $1,862,651 $1,753,880 $108,771 6.2% Deposits $1,412,217 $1,254,996 $157,221 12.5% Short - term borrowings 188,687 172,447 16,240 9.4% Long - term debt 103,824 100,190 3,634 3.6% Other liabilities 16,564 96,428 (79,864) -82.8% Shareholders' equity 141,359 129,819 11,540 8.9% Total liabilities & shareholders' equity $1,862,651 $1,753,880 $108,771 6.2%
Changes to Shareholder's Equity
For the three months ended March 31,
1995 1994 Change %
Balance at beginning of period $135,564 $132,406 $3,158 2.4% Income before cumulative effect of acctg chnage 5,242 2,284 2,958 129.5% Cumulative effect of accounting change - 138 (138) -100.0% Dividends declared (1,565) (1,021) (544) -53.3% Issuance of employee restricted stock - - - - Amortization of employee restricted stock 47 15 32 213.3% Exercise of employee stock options (19) (26) 7 26.9% Net changes in market valuation on securities AFS, net of tax 1,870 (3,977) 5,847 147.0% Net changes in market valuation on securities AFS transferred to the investment portfolio, net of taxes 220 --- 220 100.0% Balance at end of period $141,359 $129,819 $11,540 8.9% Average Balance Sheets Loans $1,295,777 $1,131,223 $164,554 14.5% Loans held for sale 9,866 22,064 (12,198) -55.3% Securities available for sale 120,966 311,451 (190,485) -61.2% Investment securities 310,372 95,887 214,485 223.7% Money market assets 9,448 6,638 2,810 42.3% Total earning assets 1,746,429 1,567,263 179,166 11.4% Allowance for possible loan losses (21,775) (21,175) (600) -2.8% OREO and repossessed assets 1,096 3,865 (2,769) -71.6% Other assets 121,158 116,749 4,409 3.8% Total assets $1,846,908 $1,666,702 $180,206 10.8% Deposits $1,415,581 $1,258,268 $157,313 12.5% Short - term borrowings 167,810 158,657 9,153 5.8% Long - term debt 108,613 99,469 9,144 9.2% Other liabilities 17,412 18,214 (802) -4.4% Shareholders' equity 137,492 132,094 5,398 4.1% Total liabilities & shareholders' equity $1,846,908 $1,666,702 $180,206 10.8%
Banknorth Group, Inc.
Comparative Financial Results
($ in thousands, except share and per share data)
Balance Sheets, Period End
Balances as of
12-31-94 12-31-93 Change %
Loans $1,296,071 $1,123,216 $172,855 15.4% Loans held for sale 14,025 29,791 (15,766) -52.9% Securities available for sale 118,554 296,212 (177,658) -60.0% Investment securities 317,176 106,877 210,299 196.8% Money market assets 15,600 8,300 7,300 88.0% Total earning assets 1,761,426 1,564,396 197,030 12.6% Allowance for possible loan losses (21,437) (21,363) (74) -0.3% OREO and repossessed assets 575 3,444 (2,869) -83.3% Premises and Equipment 25,130 26,856 (1,726) -6.4% Goodwill and other intangibles 12,599 3,007 9,592 319.0% Other assets 95,595 85,244 10,351 12.1% Total assets $1,873,888 $1,661,584 $212,304 12.8% Deposits $1,443,467 $1,262,876 $180,591 14.3% Short - term borrowings 155,146 149,260 5,886 3.9% Long - term debt 121,589 96,801 24,788 25.6% Other liabilities 18,122 20,241 (2,119) -10.5% Shareholders' equity 135,564 132,406 3,158 2.4% Total liabilities & shareholders' equity $1,873,888 $1,661,584 $212,304 12.8%
Changes to Shareholder's Equity
For the year ended December 31,
1994 1993 Change %
Balance at beginning of period $132,406 $127,395 $5,011 3.9% Income before cumulative effect of acctg change 15,903 11,461 4,442 38.8% Cumulative effect of accounting change 138 (3,500) 3,638 103.9% Dividends declared (4,083) (2,720) (1,363) -50.1% Issuance of employee restricted stock (247) (208) (39) -18.8% Amortization of employee restricted stock 97 58 39 67.2% Exercise of employee stock options (155) (80) (75) -93.8% Net changes in market valuation on securities AFS, net of tax (4,591) ---- (4,591) -100.0% Net changes in market valuation on securities AFS transferred to the investment portfolio, net of tax (3,904) ---- (3,904) -100.0% Balance at end of period $135,564 $132,406 $3,158 2.4% Average Balance Sheets Loans $1,187,773 $1,091,851 $95,922 8.8% Loans held for sale 15,432 24,167 (8,735) -36.1% Securities available for sale 221,828 337,523 (115,695) -34.3% Investment securities 176,980 23,491 153,489 653.4% Money market assets 11,419 9,873 1,546 15.7% Total earning assets 1,613,432 1,486,905 126,527 8.5% Allowance for possible loan losses (20,933) (21,690) 757 3.5% OREO and repossessed assets 2,572 8,320 (5,748) -69.1% Other assets 118,743 120,653 (1,910) -1.6% Total assets $1,713,814 $1,594,188 $119,626 7.5% Deposits $1,306,749 $1,278,284 $28,465 2.2% Short - term borrowings 145,616 130,176 15,440 11.9% Long - term debt 113,364 41,312 72,052 174.4% Other liabilities 17,077 16,107 970 6.0% Shareholders' equity 131,008 128,309 2,699 2.1% Total liabilities & shareholders' equity $1,713,814 $1,594,188 $119,626 7.5%
Banknorth Group, Inc.
Comparative Financial Results
($ in thousands, except share and per share data)
Page 5
Credit Quality Information
Balances as of
3-31-95 03-31-94 Change %
Non-accrual loans $18,598 $22,549 ($3,951) -17.5% Loans past - due 90 days and accruing 1,283 545 738 135.4% Restructured loans 461 444 17 3.8% Total non-performing loans (NPLs) 20,342 23,538 (3,196) -13.6% In - substance foreclosed property 161 --- 161 100.0% Foreclosed property 609 4,333 (3,724) -85.9% Total foreclosed and repo'd assets (F/RA) 770 4,333 (3,563) -82.2% Total non - performing assets (NPAs) $21,112 $27,871 ($6,920) -24.8% NPAs as a % of (loans+F/RA), p.e. 1.61% 2.42% -0.81 -33.5% NPAs as a % of total assets, p.e. 1.13% 1.59% -0.46 -28.9% Allow for loan losses as % of NPLs, p.e. 105.95% 86.77% 19.18 22.1% Allow for loan losses as % of total loans 1.64% 1.78% -0.14 -7.9%
For the three months ended March 31,
1995 1994 Change %
Loans charged off $2,074 $3,316 ($1,242) -37.5%
Loan recoveries 1,190 1,523 (333) -21.9%
Loans charged off, net of
recoveries $884 $1,793 ($909) -50.7%
As a % of average
loans 0.27% 0.63% -0.36% -57.1%
Provision for possible
loan losses $1,000 $855 $145 17.0%
As a % of average
loans 0.31% 0.30% 0.01% 3.3%
Capital Strength
Balances as of
03-31-95 03-31-94 Change %
Total risk - adjusted assets $1,275,120 $1,162,022 $113,098 9.7% As a % of total assets, without fair value adjustment 68.22% 66.10% 2.12% 3.2% Total shareholders' equity $141,359 $129,819 $11,540 8.9% Fair value adjustment 6,405 3,977 2,428 61.1% Other adjustments to Tier 1 capital (9,230) (334) (8,896)-2663.5% Total Tier 1 capital 138,534 133,462 5,072 3.8% Maximum allowance for possible loan losses 16,008 14,598 1,410 9.7% Total capital $154,542 $148,060 $6,482 4.4% Total capital to total risk-adjusted assets 12.12% 12.74% -0.62 -4.9% Tier I capital to total risk-adjusted as 10.86% 11.49% -0.62 -5.4% Tier I cap to total assets, net fair value (leverage) 7.41% 7.59% -0.18 -2.4% Shareholders' equity to total assets, p.e. 7.59% 7.40% 0.19 2.5% Tangible shareholders' equity to tangible assets 6.97% 7.24% -0.27 -3.7%
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Banknorth Group, Inc.
Comparative Financial Results
($ in thousands, except share and per share data)
Credit Quality Information
Balances as of
12-31-94 12-31-93 Change %
Non-accrual loans $17,768 $27,511 ($9,743) -35.4% Loans past - due 90 days and accruing 1,151 591 560 94.8% Restructured loans 470 914 (444) -48.6% Total non-performing loans (NPLs) 19,389 29,016 (9,627) -33.2% In - substance foreclosed property --- --- --- --- Foreclosed property 575 3,444 (2,869) -83.3% Total foreclosed and repo'd assets (F/RA) 575 3,444 (2,869) -83.3% Total non - performing assets (NPAs) $19,964 $32,460 (5,738) -17.7% NPAs as a % of (loans+F/RA), p.e. 1.54% 2.88% -1.34 -46.5% NPAs as a % of total assets, p.e. 1.07% 1.95% -0.88 -45.1% Allow for loan losses as % of NPLs, p.e. 110.56% 73.62% 36.94 50.2% Allow for loan losses as % of total loans 1.65% 1.90% -0.25 -13.2%
For the year ended December 31,
1994 1993 Change %
Loans charged off $9,720 $11,717 ($1,997) -17.0% Loan recoveries 4,976 6,281 (1,305) -20.8% Loans charged off, net of recoveries $4,744 $5,436 ($692) -12.7% As a % of average loans 0.40% 0.50% -0.10% -20.0% Provision for possible loan losses $3,210 $4,700 ($1,490) -31.7% As a % of average loans 0.27% 0.43% -0.16% -37.2%
Capital Strength
Balances as of
12-31-94 12-31-93 Change %
Total risk - adjusted assets $1,269,728 $1,129,189 $140,539 12.4% As a % of total assets, without fair value adjustments 67.45% 67.96% -0.51% -0.8% Total shareholders' equity $135,564 $132,406 $3,158 2.4% Fair value adjustment 8,495 - 8,495 100.0% Other adjustments to Tier 1 capital (9,391) (330) (9,061)-2745.8% Total Tier 1 capital 134,668 132,076 2,592 2.0% Maximum allowance for possible loan loss 15,940 14,204 1,736 12.2% Total capital $150,608 $146,280 $4,328 3.0% Total capital to total risk-adjusted assets 11.86% 12.95% -1.09 -8.4% Tier I capital to total risk-adjusted assets 10.61% 11.70% -1.09 -9.3% Tier I cap to total assets, net fair value (leverage) 7.15% 7.95% -0.79 -10.0% Shareholders' equity to total assets, p.e. 7.23% 7.97% -0.73 -9.2% Tangible shareholders' equity to tangible assets 6.61% 7.80% -1.20 -15.3% CONTACT: Banknorth Group Inc., Burlington David P. Reville Thomas J. Pruitt (802) 860-5474 (802) 860-5558 |
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