Banknorth Group Reports 1997 Earnings.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)--Jan. 15, 1998-- 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 for the fourth quarter and the year ended December December: see month. 31, 1997. Net income for the three months ended December 31, 1997, was $8.8 million, an increase of $1.7 million or 24.6% over the fourth quarter of 1996. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the fourth quarter of 1997 was $1.10 per share compared to $.89 per share for the fourth quarter of 1996. Net income for the year ended December 31, 1997, was $30.5 million, an increase of $5.1 million or 20.1% over 1996. Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. were $3.85 and $3.28 for the years ended December 31, 1997, and 1996, 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. Results for the year 1997 included the following: -- A 5% stock buy-back program announced and began in the fourth quarter of 1997. -- Issued $30.0 million of Capital securities. -- Return on average equity of 14.01%. -- A gain of $2.4 million on the fourth quarter sale of the Company's interest in future income from processing merchant transactions. In 1996, the Company reported the formation of First Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. Bank, N. A. ("FMB FMBabbr. Federal Maritime Board FMB (US) n abbr (= Federal Maritime Board) → Dachausschuss der Handelsmarine "), a denovo bank formed in connection with branch acquisitions, and Stratevest Group, N. A., ("Stratevest") a limited purpose trust bank. In establishing FMB and Stratevest, and in undergoing a data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a conversion in the ATM/debit card area, the Company incurred one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. expenses in February February: see month. 1996 of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.4 million, net of taxes ($.18 diluted EPS effect). "We are pleased with our accomplishments in 1997," said Chadwick. "A strong focus on growing core non-interest revenue and controlling expenses served us well in the fourth quarter of 1997 and provides a platform to continue performance improvement in 1998 and beyond," he said. Fourth quarter net interest income for 1997 was $30.6 million, an increase of $2.0 million, or 6.9%, over 1996. Total non-interest income in the fourth quarter of 1997 was $10.1 million compared to $6.5 million for the fourth quarter of 1996. Included in fourth quarter 1997 non-interest income was a $2.4 million gain on the sale of merchant processing services. Banknorth has formed a marketing alliance with the processor of merchant services Merchant services is the name given in the United States to a broad category of financial services intended for use by businesses. In its most specific use, it usually refers to the service that enables a business to accept a transaction payment by use of the customer's credit or that provides for increased services to the merchant customer, continued fee opportunities for Banknorth and the elimination of all future merchant processing expense. "This alliance should be a win-win-win," remarked Chadwick. Without the gain non-interest income was up $1.2 million, or 18.3% over the fourth quarter of 1996. Total non-interest expenses for the fourth quarter of 1997 were $25.5 million, an increase of $2.1 million, or 9.1% above 1996 levels. Without the capital securities expense of $789.0 thousand, fourth quarter non-interest expenses were up 5.6% over the fourth quarter of 1996. Net interest income for the year ended December 31, 1997, was $119.2 million, an increase of $10.3 million, or 9.5%, from the year ended December 31, 1996. Non-interest income was $31.3 million and $25.3 million for the years ended December 31, 1997, and 1996, respectively. Without the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. $2.4 million gain on the sale of merchant processing services, non-interest income was $28.9 million for the year ended December 31, 1997, an increase of $3.6 million or 14.2% over the year ended 1996. Non-interest expenses were $97.6 million for the year ended December 31,1997 compared to $91.2 million for the year ended December 31, 1996, an increase of $6.4 million, or 7.0%. Included in total non-interest expenses in 1997 was $2.1 million for capital securities expense. Without the expense of capital securities, total non-interest expenses in 1997 increased $4.3 million, or 4.7%. Total assets were $2.9 billion at December 31, 1997, an increase of $321.7 million, or 12.4% from December 31, 1996. Total loans ended the year 1997 at $2.0 billion, up $112.4 million or 6.1%, from the end of 1996. Total deposits at December 31, 1997, were $2.2 billion, an increase of $133.8 million or 6.5% above the level at year end 1996. Banknorth Group, Inc. is a holding company comprised of seven community banks, a mortgage company and a trust and investment management company. Customers are served electronically 24 hours a day, 7 days a week through the company's ATM network and telephone banking system -- and personally through 60 offices 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. , New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). and Massachusetts.
Banknorth Group, Inc.
Comparative Financial Results
(In thousands, except share and per share data)
Income Statements For the three months ended December 31,
1997 1996 Change %
Interest income $56,891 $50,246 $6,645 13.2%
Interest expense 26,339 21,666 4,673 21.6%
Net interest income 30,552 28,580 1,972 6.9%
Provision for loan losses 2,036 1,500 536 35.7%
Net interest income after
provision for loan losses 28,516 27,080 1,436 5.3%
Gain on sale of merchant
processing 2,432 -- 2,432 100.0%
Non-interest income 7,692 6,504 1,188 18.3%
Total non-interest income 10,124 6,504 3,620 55.7%
Goodwill amortization 1,306 1,305 1 0.1%
Capital securities expense 789 -- 789 100.0%
Other expenses 23,384 22,056 1,328 6.0%
Total non-interest expenses 25,479 23,361 2,118 9.1%
Income before income taxes 13,161 10,223 2,938 28.7%
Income taxes 4,401 3,190 1,211 38.0%
NET INCOME $8,760 $7,033 $1,727 24.6%
Per Share Information
Basic wtd. avg number of
shares outstanding 7,819,892 7,776,748 43,144 0.6%
Basic earnings per share
(Basic EPS) $1.12 $0.90 $0.22 24.4%
Diluted wtd. avg number of
shares outstanding 7,951,157 7,865,704 85,453 1.1%
Diluted earnings per share
(Diluted EPS) $1.10 $0.89 $0.21 23.6%
Shares outstanding, net
treasury shares 7,749,648 7,826,648 (77,000) (1.0%)
Book value $29.66 $26.41 $3.25 12.3%
Tangible book value 25.67 21.80 3.87 17.8%
Cash dividends declared per share 0.29 0.25 0.04 16.0%
Closing price at period end 64.25 41.50 22.75 54.8%
Ratios
Return on average total assets 1.21% 1.10% 0.11% 10.0%
Return on average shareholders'
equity 15.24% 13.73% 1.51% 11.0%
Dividend payout ratio 25.89% 27.78% (1.89%) (6.8%)
Price / Basic EPS (last
four reported quarters) 16.4 12.5 3.9 31.2%
Price / Diluted EPS (last
four reported quarters) 16.7 12.7 4.0 31.5%
Price / Tangible book value 250.3% 190.4% 59.9% 31.5%
Net interest income,
f.t.e. basis $30,693 $28,720 $1,973 6.9%
Net interest margin 4.48% 4.81% (0.33%) (6.9%)
Efficiency ratio 62.44% 62.36% 0.08% 0.1%
Expense ratio 2.27% 2.59% (0.32%) (12.4%)
NPAs as a % of total assets,
p.e. 0.56% 0.76% (0.20%) (26.3%)
Allow. for loan losses as
% of NPLs, p.e. 175.08% 124.00% 51.08% 41.2%
Allow. for loan losses as
% total loans, p.e. 1.31% 1.27% 0.04% 3.1%
Shareholders' equity to total
assets, p.e. 7.86% 7.95% (0.09%) (1.1%)
Tangible shareholder's equity to
tangible assets, p.e. 6.88% 6.65% 0.23% 3.5%
Income Statements For the years ended December 31,
1997 1996 Change %
Interest income $218,506 $190,008 $28,498 15.0%
Interest expense 99,324 81,140 18,184 22.4%
Net interest income 119,182 108,868 10,314 9.5%
Provision for loan losses 7,662 5,600 2,062 36.8%
Net interest income after
provision for loan losses 111,520 103,268 8,252 8.0%
Gain on sale of merchant
processing 2,432 -- 2,432 100.0%
Non-interest income 28,894 25,303 3,591 14.2%
Total non-interest income 31,326 25,303 6,023 23.8%
Goodwill amortization 5,223 4,652 571 12.3%
Capital securities expense 2,104 -- 2,104 100.0%
Other expenses 90,238 86,548 3,690 4.3%
Total non-interest expenses 97,565 91,200 6,365 7.0%
Income before income taxes 45,281 37,371 7,910 21.2%
Income taxes 14,792 11,981 2,811 23.5%
NET INCOME $30,489 $25,390 $5,099 20.1%
Per Share Information
Basic wtd. avg number of
shares outstanding 7,805,127 7,660,212 144,915 1.9%
Basic earnings per share
(Basic EPS) $3.91 $3.31 $0.60 18.1%
Diluted wtd. avg number
of shares outstanding 7,916,769 7,734,691 182,078 2.4%
Diluted earnings per share
(Diluted EPS) $3.85 $3.28 $0.57 17.4%
Shares outstanding, net
treasury shares 7,749,648 7,826,648 (77,000) (1.0%)
Book value $29.66 $26.41 $3.25 12.3%
Tangible book value 25.67 21.80 3.87 17.8%
Cash dividends declared
per share 1.16 1.00 0.16 16.0%
Closing price at period end 64.25 41.50 22.75 54.8%
Ratios
Return on average total assets 1.10% 1.06% 0.04% 3.8%
Return on average
shareholders' equity 14.01% 13.27% 0.74% 5.6%
Dividend payout ratio 29.67% 30.21% (0.54%) (1.8%)
Price / Basic EPS (last four
reported quarters) 16.4 12.5 3.9 31.2%
Price / Diluted EPS (last
four reported quarters) 16.7 12.7 4.0 31.5%
Price / Tangible book value 250.3% 190.4% 59.9% 31.5%
Net interest income,
f.t.e. basis $119,741 $109,467 $10,274 9.4%
Net interest margin 4.57% 4.86% (0.29%) (6.0%)
Efficiency ratio 62.06% 62.11% (0.05%) (0.1%)
Expense ratio 2.36% 2.59% (0.23%) (8.9%)
NPAs as a % of total
assets, p.e. 0.56% 0.76% (0.20%) (26.3%)
Allow. for loan losses
as % of NPLs, p.e. 175.08% 124.00% 51.08% 41.2%
Allow. for loan losses
as % total loans, p.e. 1.31% 1.27% 0.04% 3.1%
Shareholders' equity
to total asset, p.e. 7.86% 7.95% (0.09%) (1.1%)
Tangible shareholder's equity
to tangible assets, p.e. 6.88% 6.65% 0.23% 3.5%
-0-
Balance Sheets
Balances as of
12-31-97 12-31-96 Change %
Loans $1,960,629 $1,848,232 $112,397 6.1%
Loans held for sale 24,958 12,106 12,852 106.2%
Securities available for sale 710,308 531,269 179,039 33.7%
Investment securities 23,972 34,194 (10,222) (29.9%)
Money market investments 50 101 (51) (50.5%)
Total earning assets 2,719,917 2,425,902 294,015 12.1%
Allowance for loan losses (25,721) (23,520) 2,201 9.4%
Goodwill 30,919 36,142 (5,223) (14.5%)
Other assets 197,862 162,799 35,063 21.5%
Total assets $2,922,977 $2,601,323 $321,654 12.4%
Deposits:
Non-interest bearing $324,320 $287,598 $36,722 12.8%
Interest bearing 1,875,500 1,778,466 97,034 5.5%
Total 2,199,820 2,066,064 133,756 6.5%
Short-term borrowed funds 422,777 280,461 142,316 50.7%
Long-term debt 16,539 25,923 (9,384) (36.2%)
Other liabilities 23,969 22,138 1,831 8.3%
Total liabilities 2,663,105 2,394,586 268,519 11.2%
Corporation obligated jr sub
debentures 30,000 -- 30,000 100.0%
Shareholders' equity 229,872 206,737 23,135 11.2%
Total liabilities, corp
obligated jr sub debentures
and shareholders' equity $2,922,977 $2,601,323 $321,654 12.4%
Balances as of
12-31-96 12-31-95 Change %
Loans $1,848,232 $1,351,053 $497,179 36.8%
Loans held for sale 12,106 19,125 (7,019) (36.7%)
Securities available
for sale 531,269 359,085 172,184 48.0%
Investment securities 34,194 49,680 (15,486) (31.2%)
Money market investments 101 650 (549) (84.5%)
Total earning assets 2,425,902 1,779,593 646,309 36.3%
Allowance for loan losses (23,520) (22,095) 1,425 6.4%
Goodwill 36,142 8,553 27,589 322.6%
Other assets 162,799 144,123 18,676 13.0%
Total assets $2,601,323 $1,910,174 $691,149 36.2%
Deposits:
Non-interest bearing $287,598 $228,334 $59,264 26.0%
Interest bearing 1,778,466 1,332,435 446,031 33.5%
Total 2,066,064 1,560,769 505,295 32.4%
Short-term borrowed funds 280,461 116,213 164,248 141.3%
Long-term debt 25,923 55,997 (30,074) (53.7%)
Other liabilities 22,138 17,259 4,879 28.3%
Total liabilities 2,394,586 1,750,238 644,348 36.8%
Corporation obligated jr
sub debentures -- -- -- --
Shareholders' equity 206,737 159,936 46,801 29.3%
Total liabilities, corp
obligated jr sub
debentures and
shareholders' equity $2,601,323 $1,910,174 $691,149 36.2%
CONTACT: Banknorth Group, Inc. David P. Reville (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 (802) 860-5558 |
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