BANKNORTH REPORTS SECOND QUARTER 1995 RESULTS.BURLINGTON Burlington, town, Canada Burlington, town (1991 pop. 129,575), SE Ont., Canada, on Lake Ontario. First settled (1798) by Mohawk Loyalist Joseph Brandt, Burlington's economy was built on the shipment of wheat, lumber, and quarried rock by waterway. , Vt.--(BUSINESS WIRE)--July 13, 1995--Banknorth Group, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on - BKNG) today announced earnings results for the second quarter of 1995. Net income for the three months ended June June: see month. 30, 1995, was $5.5 million, or $.80 per share, compared to $3.4 million, or $.50 per share, for the second quarter of 1994, an increase of $2.1 million, or 61.4%. Net income for the six months ended June 30, 1995, was $10.7 million, or $1.57 per share, compared to $5.8 million, or $.86 per share, for the first six months of 1994. The annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. net returns on average assets and on average shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. for the first six months of 1995 were 1.16% and 15.36%, respectively. Making the announcement was William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack H. Chadwick Chad·wick , Henry 1824-1908. British-born American sportswriter who helped organize professional baseball. In 1869 he began an annual baseball handbook, which later became Spalding's Official Baseball Guide. , president and chief executive officer. Net interest income, $20.9 million in the second quarter of 1995, increased $3.1 million or 17.5%, over the second quarter of 1994. Other income, $5.3 million for the three months ended June 30, 1995, was up $418 thousand, or 8.6%, over the second quarter of 1994. For the six months ended June 30, 1995, net interest income was $42.1 million, an increase of $7.2 million, or 20.8%, over the first six months of 1994. Other income for the six months ended June 30, 1995, was $10.3 million, an increase of $864 thousand, or 9.1% over the first six months of 1994. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , at $17.4 million for the three months ended June 30, 1995, were down $125 thousand, or 0.7%, from the level experienced in the second quarter of 1994. OREO and foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. expenses, net of gains on disposal of foreclosed assets, were down $465 thousand in the second quarter of 1995, from the second quarter of 1994. Total operating expenses for the six months ended June 30, 1995, were $35.2 million, up only $80 thousand or less than one percent, from total operating expenses in the first six months of 1994. On October October: see month. 14, 1994, Banknorth completed its acquisition of Farmington Farmington. 1 Town (1990 pop. 20,608), Hartford co., central Conn., on the Farmington River; inc. 1645. It is mainly residential with some light industries. The town has a private girls' school and the Univ. National Bank, Farmington, New Hampshire Farmington is a town located in Strafford County, New Hampshire, USA. As of the 2000 census, the town had a total population of 5,774. Farmington is home to Blue Job State Forest. . The acquisition was accounted for as a purchase transaction and, accordingly, periods before the completion date were not restated. "Banknorth continued to enjoy a strong net interest margin in the second quarter," reported Chadwick. "Net interest income has remained stronger than expected for the first six months, however we still believe it will decline somewhat during the remainder of 1995 as certificates of deposit mature and are repriced at current higher rates," he said. Total assets as of June 30, 1995, were $1.9 billion, compared to $1.7 billion at June 30, 1994, an increase of 12.6%. Banknorth Group, Inc., the largest banking company in Vermont Vermont (vərmŏnt`) [Fr.,=green mountain], New England state of the NE United States. It is bordered by New Hampshire, across the Connecticut R. , is a community bank holding company headquartered in Burlington, VT. The Company offers a full range of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. through its six community banks and mortgage company with offices throughout Northern New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. .
Banknorth Group, Inc.
Comparative Financial Results
($ in thousands, except share and per share data)
Income Statements
For the three months ended June 30,
1995 1994 Change %
Interest income $37,967 $29,522 $8,445 28.6%
Interest expense 17,079 11,738 5,341 45.5%
Net interest income 20,888 17,784 3,104 17.5%
Provision for possible
loan losses 1,125 778 347 44.6%
19,763 17,006 2,757 16.2%
Trust Income 1,890 1,777 113 6.4% Service charges on deposit accounts 1,321 1,220 101 8.3% Mortgage servicing fees 655 574 81 14.1% Credit card income 665 657 8 1.2% Net securities transactions 46 (756) 802 106.1% Net loan transactions 94 222 (128) -57.7% Net gain/(loss) on sale of fixed and other assets 7 (8) 15 187.5% Gain on sale of mortgage servicing rights -- 664 (664) - Other income 618 528 90 17.0% Total other income 5,296 4,878 418 8.6% Salaries 6,814 6,493 321 4.9% Employee benefits 1,656 1,671 (15) -0.9% Net occupancy 1,325 1,317 8 0.6% Equipment 1,368 1,410 (42) -3.0% Data processing 1,076 1,271 (195) -15.3% FDIC deposit insurance and other regulatory 905 860 45 5.2% OREO and repossession (9) 456 (465) -102.0% Other expense 4,237 4,019 218 5.4% Total other expenses 17,372 17,497 (125) -0.7% Income before income taxes 7,687 4,387 3,300 75.2% Income taxes 2,213 996 1,217 122.2% Income before cumulative effect of accounting change 5,474 3,391 2,083 61.4% Accounting for securities available for sale, net of tax -- -- -- -- NET INCOME $5,474 $3,391 $2,083 61.4% Per Share Information Wtd avg number of shares outstanding 6,804,425 6,804,425 -- -- Income before cumulative effect of accounting changes $0.80 $0.50 $0.30 60.0% Net income 0.80 0.50 0.30 60.0% Shares outstanding 6,804,425 6,804,425 -- -- Book value $21.65 $18.94 $2.71 14.3% Tangible book value 19.83 18.49 1.34 7.2% Dividends declared 1,565 1,021 544 53.3% Dividends declared per share 0.23 0.15 0.08 53.3% Dividend payout ratio 28.8% 30.0% -1.2% -4.0% Closing price at period end $26.88 $20.56 $6.32 30.7% Price / Earnings (LTM) 8.8 12.0 Price / Tangible book value 136% 111% Ratios Return on average total assets: Income before accounting change 1.18% 0.81% 0.37% 45.7% Net income 1.18% 0.81% 0.37% 45.7% Return on average shareholders' equity: Income before accounting change 15.27% 10.59% 4.68% 44.2% Net income 15.27% 10.59% 4.68% 44.2% Net interest income, f.t.e. basis $21,062 $17,907 $3,155 17.6% Net interest margin 4.75% 4.53% 0.22% 4.9% Efficiency ratio 66.65% 74.46% -7.82% -10.5% Expense ratio 2.77% 3.05% -0.28% -9.1% -0-
Banknorth Group, Inc.
Comparative Financial Results
$ in thousands, except share and per share data)
Income Statements
For the six months ended June 30,
1995 1994 Change %
Interest income $74,767 $57,672 $17,095 29.6% Interest expense 32,709 22,857 9,852 43.1% Net interest income 42,058 34,815 7,243 20.8%
Provision for
possible loan losses 2,125 1,633 492 30.1%
39,933 33,182 6,751 20.3%
Trust Income 3,712 3,736 (24) -0.6% Service charges on deposit accounts 2,557 2,429 128 5.3% Mortgage servicing fees 1,373 1,118 255 22.8% Credit card income 1,263 1,263 --- --- Net securities transactions 53 (1,866) 1,919 102.8% Net loan transactions 186 789 (603) -76.4% Net gain/(loss) on sale of fixed and other assets 2 205 (203) -99.0% Gain on sale of mortgage servicing rights --- 664 (664) --- Other income 1,192 1,136 56 4.9% Total other income 10,338 9,474 864 9.1% Salaries 13,551 12,938 613 4.7% Employee benefits 3,443 3,440 3 0.1% Net occupancy 2,756 2,781 (25) -0.9% Equipment 2,719 2,765 (46) -1.7% Data processing 2,262 2,536 (274) -10.8% FDIC deposit insurance and other regulatory 1,819 1,723 96 5.6% OREO and repossession 268 1,331 (1,063) -79.9% Other expense 8,382 7,606 776 10.2% Total other expenses 35,200 35,120 80 0.2% Income before income taxes 15,071 7,536 7,535 100.0% Income taxes 4,355 1,861 2,494 134.0% Income before cumulative effect of accounting change 10,716 5,675 5,041 88.8% Accounting for securities available for sale, net of tax -- 138 (138) -- NET INCOME $10,716 $5,813 $4,903 84.3% -0- Per Share Information Wtd avg number of shares outstanding 6,804,425 6,804,425 -- -- Income before cumulative effect of accounting changes $1.57 $0.84 $0.73 86.9% Net income 1.57 0.86 0.71 82.6% Shares outstanding 6,804,425 6,804,425 -- -- Book value $21.65 $18.94 $2.71 14.3% Tangible book value 19.83 18.49 1.34 7.2% Dividends declared 3,130 2,042 1,088 53.3% Dividends declared per share 0.46 0.30 0.16 53.3% Dividend payout ratio 29.3% 34.9% -5.6% -16.0% Closing price at period end $26.88 $20.56 $6.32 30.7% Price / Earnings (LTM) 8.8 12.0 Price / Tangible book value 136% 111% Ratios Return on average total assets: Income before accounting change 1.16% 0.68% 0.48% 70.6% Net income 1.16% 0.70% 0.46% 65.7% Return on average shareholders' equity: Income before accounting change 15.36% 8.78% 6.58% 74.9% Net income 15.36% 9.00% 6.36% 70.7% Net interest income, f.t.e. basis $42,386 $35,053 $7,333 20.9% Net interest margin 4.84% 4.48% 0.36% 8.0% Efficiency ratio 66.61% 74.22% -7.61% -10.3% Expense ratio 2.83% 2.98% -0.15% -5.1% -0-
Banknorth Group, Inc.
Comparative Financial Results
$ in thousands, except share and per share data)
Balance Sheets, Period End
Balances as of
6-30-95 6-30-94 Change %
Loans $1,339,411 $1,189,319 $150,092 12.6% Loans held for sale 14,484 12,054 2,430 20.2% Securities available for sale 125,917 226,081 (100,164) -44.3% Investment securities 299,900 162,179 137,721 84.9% Money market assets 1,450 50 1,400 2800.0% Total earning assets 1,781,162 1,589,683 191,479 12.0% Allowance for possible loan losses (20,907) (19,670) (1,237) -6.3% OREO and repossessed assets 825 2,102 (1,277) -60.8% Premises and equipment 24,607 26,189 (1,582) -6.0% Goodwill and other intangibles 12,375 3,095 9,280 299.8% Other assets 104,198 87,893 16,305 18.6% Total assets $1,902,260 $1,689,292 $212,968 12.6% Deposits $1,451,015 $1,265,963 $185,052 14.6% Short - term borrowings 188,002 158,319 29,683 18.7% Long - term debt 99,071 120,068 (20,997) -17.5% Other liabilities 16,890 16,048 842 5.2% Shareholders' equity 147,282 128,894 18,388 14.3% Total liabilities & shareholders' equity $1,902,260 $1,689,292 $212,968 12.6%
Changes to Shareholders' Equity
For the three months ended June 30,
1995 1994 Change %
Balance at beginning of period $141,359 $129,819 $11,540 8.9% Income before cumulative effect of acctg 5,474 3,391 2,083 61.4% Cumulative effect of accounting change -- -- -- -- Dividends declared (1,565) (1,021) (544) 53.3% Amortization of employee restricted stock 71 39 32 82.1% Exercise of employee stock options (17) (9) (8) 88.9% Net changes in market valuation on securities AFS, net of tax 1,724 (3,325) 5,049 -151.8% Net changes in market valuation on securities AFS transferred to the investment portfolio, net of tax 236 -- 236 -- Balance at end of period $147,282 $128,894 $18,388 14.3% Average Balance Sheets Loans $1,324,586 $1,164,913 $159,673 13.7% Loans held for sale 10,197 13,988 (3,791) -27.1% Securities available for sale 126,263 235,938 (109,675) -46.5% Investment securities 304,657 143,356 161,301 112.5% Money market assets 3,035 18,271 (15,236) -83.4% Total earning assets 1,768,738 1,576,466 192,272 12.2% Allowance for possible loan losses (21,385) (20,699) (686) -3.3% OREO and repossessed assets 908 3,424 (2,516) -73.5% Goodwill and other intangibles 12,444 3,146 9,298 295.5% Other assets 105,172 113,140 (7,968) -7.0% Total assets $1,865,877 $1,675,477 $190,400 11.4% Deposits $1,420,538 $1,258,569 $161,969 12.9% Short - term borrowings 183,021 155,305 27,716 17.8% Long - term debt 101,506 117,051 (15,545) -13.3% Other liabilities 17,029 16,086 943 5.9% Shareholders' equity 143,783 128,466 15,317 11.9% Total liabilities & shareholders' equity $1,865,877 $1,675,477 $190,400 11.4% -0-
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 Shareholders'
Equity
For the six months ended June 30,
1995 1994 Change %
Balance at beginning of period $135,564 $132,406 $3,158 2.4% Income before cumulative effect of acctg 10,716 5,675 5,041 88.8% Cumulative effect of accounting change -- 138 (138) --- Dividends declared (3,130) (2,042) (1,088) 53.3% Amortization of employee restricted stock 118 54 64 118.5% Exercise of employee stock options (36) (35) (1) 2.9% Net changes in market valuation on securities AFS, net of tax 3,594 (7,302) 10,896 -149.2% Net changes in market valuation on securities AFS transferred to the investment portfolio, net of tax 456 --- 456 -- Balance at end of period $147,282 $128,894 $18,388 14.3% Average Balance Sheets Loans $1,310,290 $1,148,161 $162,129 14.1% Loans held for sale 10,000 18,004 (8,004) -44.5% Securities available for sale 123,644 273,486 (149,842) -54.8% Investment securities 307,491 119,753 187,738 156.8% Money market assets 6,224 12,487 (6,263) -50.2% Total earning assets 1,757,649 1,571,891 185,758 11.8% Allowance for possible loan losses (21,580) (20,936) (644) -3.1% OREO and repossessed assets 1,001 3,643 (2,642) -72.5% Goodwill and other intangibles 12,508 3,109 9,399 302.3% Other assets 106,454 113,407 (6,953) -6.1% Total assets $1,856,032 $1,671,114 $184,918 11.1% Deposits $1,417,638 $1,258,419 $159,219 12.7% Short - term borrowings 175,488 156,971 18,517 11.8% Long - term debt 105,040 108,309 (3,269) -3.0% Other liabilities 17,219 17,145 74 0.4% Shareholders' equity 140,647 130,270 10,377 8.0% Total liabilities & shareholders' equity $1,856,032 $1,671,114 $184,918 11.1% -0-
Banknorth Group, Inc.
Comparative Financial Results
$ in thousands, except share and per share data)
Credit Quality Information
Balances as of
6-30-95 6-30-94 Change %
Non-accrual loans $17,654 $20,718 ($3,064) -14.8% Loans past - due 90 days and accruing 915 545 370 67.9% Restructured loans 456 452 4 0.9% Total non-performing loans (NPLs) 19,025 21,715 (2,690) -12.4% Total foreclosed (OREO) and repo'd assets (F/RA) 825 2,102 (1,277) -60.8% Total non - performing assets (NPAs) $19,850 $23,817 ($3,967) -16.7% NPAs as a % of (loans+F/RA), p.e. 1.48% 2.00% -0.52% -26.0% NPAs as a % of total assets, p.e. 1.04% 1.41% -0.37% -26.2% Allow for loan losses as % of NPLs, p.e. 109.89% 90.58% 19.31% 21.3% Allow for loan losses as % of total loans, p.e. 1.56% 1.65% -0.09% -5.5%
For the three months ended June 30,
1995 1994 Change %
Loans charged off $3,068 $2,671 $397 14.9% Loan recoveries 1,297 1,138 159 14.0% Loans charged off, net of recoveries $1,771 $1,533 $238 15.5% As a % of average loans 0.53% 0.53% 0.00% 0.0% Provision for possible loan losses $1,125 $778 $347 44.6% As a % of average loans 0.34% 0.27% 0.07% 25.9%
Capital Strength
Balances as of
6-30-95 6-30-94 Change %
Total risk -
adjusted assets $1,306,273 $1,158,753 $147,520 12.7%
As a % of total assets,
net fair value
adjustment 68.51% 68.30% 0.21% 0.3%
Total shareholders' equity $147,282 $128,894 $18,388 14.3% Fair value adjustment 4,446 7,302 (2,856) -39.1% Other adjustments to Tier 1 capital (9,071) (198) (8,873) 4481.3% Total Tier 1 capital 142,657 135,998 6,659 4.9% Maximum allowance for possible loan losses 16,385 14,548 1,837 12.6% Total capital $159,042 $150,546 $8,496 5.6% Total capital to total risk-adjusted assets 12.18% 12.99% -0.81% -6.3% Tier I capital to total risk-adjusted assets 10.92% 11.74% -0.82% -7.0% Tier I capital to total assets (leverage) 7.48% 8.02% -0.54% -6.7% Shareholders' equity to total assets, p.e 7.74% 7.63% 0.11% 1.5% Tangible shareholders' equity to tangible assets 7.14% 7.46% -0.32% -4.3%
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% Total foreclosed (OREO) and repo'd assets (F/RA) 575 3,444 (2,869) -83.3% Total non - performing assets (NPAs) $19,964 $32,460 (12,496) -38.5% 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, p.e. 1.65% 1.90% -0.25 -13.2%
For the six months ended June 30,
1995 1994 Change %
Loans charged off $5,142 $5,987 ($845) -14.1% Loan recoveries 2,487 2,661 (174) -6.5% Loans charged off, net of recoveries $2,655 $3,326 ($671) -20.2% As a % of average loans 0.41% 0.58% -0.17% -29.3% Provision for possible loan losses $2,125 $1,633 $492 30.1% As a % of average loans 0.32% 0.28% 0.04% 14.3%
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,
net fair value
adjustment 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 --- 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 losses 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 capital to total assets (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. David P. Reville Director, Corporate Communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. (802) 860-5474 or Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs J. Pruitt EVP EVP Executive Vice President EVP EGR (Exhaust Gas Recirculation) Valve Position Sensor EVP Electronic Voice Phenomenon EVP Europäische Volkspartei (Germany) EVP Employee Value Proposition & CFO See Chief Financial Officer. (802) 860-5558 |
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