Banknorth Group Reports 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. 16, 1997--Banknorth Group, Inc. (NASDAQ-BKNG) today announced earnings for the fourth quarter and the year ended December December: see month. 31, 1996. Net income for the three months ended December 31, 1996, was $7.0 million, an increase of $1.2 million or 20.6% over the fourth quarter of 1995. Net income per average share of common stock outstanding ("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. ") for the fourth quarter of 1996 was $.90 per share compared to $.86 per share for the fourth quarter of 1995. Net income for the year ended December 31, 1996, was $25.4 million, an increase of $3.0 million or 13.5% over 1995. EPS was $3.30 and $3.29 for the years ended December 31, 1996 and 1995, 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 1996 included the following: -- In February February: see month. 1996, Banknorth Issued 1,022,223 shares of common stock, raising $32.2 million in new equity capital, net of costs associated with the issue. -- The Company completed the acquisition in February 1996, of 13 banking offices in central and western Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. , and formed First Massachusetts Bank, N.A.,
("FMB FMBabbr. Federal Maritime Board FMB (US) n abbr (= Federal Maritime Board) → Dachausschuss der Handelsmarine ") Banknorth's first bank in Massachusetts. -- Banknorth consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: the bank trust departments into a new subsidiary, The Stratevest Group, N.A. ("Stratevest") to market trust and financial management services more effectively. 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 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 per share). The acquisition of FMB, accounted for as a purchase of assets and liabilities, created goodwill of $32.1 million which the Company is amortizing over a seven year period. As a result, the year ended December 31, 1996, contains amortization of goodwill expense of $2.4 million, net of taxes ($.31 per share). "1996 --- with the entry into Massachusetts, the formation of Stratevest and the performance of our remaining banks --- was a year of exciting accomplishments for Banknorth," said Chadwick. "The Company's entry into the Worcester Worcester, city, England Worcester (w  s`tər), city (1991 pop. 75,466) and district, Worcestershire, W central England, on the Severn River. and western
Massachusetts markets provides Banknorth with new opportunities to grow
the franchise. We look forward to 1997 and the possibilities it
presents. Banknorth will continue to search for acquisition candidates
that fit our style of community banking and grow in areas that we
presently do not serve," he said.Net interest income for 1996 was $108.9 million, an increase of $24.2 million, or 28.6%, over 1995. 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. for 1996 were $91.2 million, an increase of $20.6 million, or 29.2% above 1995 levels. Total assets were $2.6 billion at December 31, 1996, an increase of $691.1 million, or 36.2% from the end of 1995. Total loans ended the year 1996 at $1.8 billion, up $497.2 million or 36.8%, from the end of 1995. Total deposits at December 31, 1996, were $2.1 billion, an increase of $505.3 million or 32.4% above the level at year end 1995. FMB had total assets of $644 million at December 31, 1996. The aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. increases in balances and expenses in 1996 over 1995 were primarily the result of adding the new bank. Banknorth Group, Inc. is a holding company comprised of seven community banks, a mortgage company and a trust and investment management company. The community banks serve customers electronically 24 hours a day -- and from over 65 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. -0-
Banknorth Group, Inc.
Comparative Financial Results
(In thousands, except share and per share data)
Income Statements
For the three months ended Dec 31,
1996 1995 Change %
Interest income $50,246 $38,643 $11,603 30.0%
Interest expense 21,666 17,508 4,158 23.7%
Net interest income 28,580 21,135 7,445 35.2%
Provision for loan losses 1,500 1,125 375 33.3%
27,080 20,010 7,070 35.3%
Trust Income 1,750 1,835 (85) -4.6%
Service charges on depositor
accounts 1,734 1,226 508 41.4%
Loan servicing income 701 679 22 3.2%
Credit card income 938 842 96 11.4%
Net securities transactions 7 9 (2) -22.2%
Net loan transactions 413 217 196 90.3%
Other income 961 611 350 57.3%
Total other income 6,504 5,419 1,085 20.0%
Salaries 9,117 7,661 1,456 19.0%
Employee benefits 1,898 1,457 441 30.3%
Net occupancy 1,971 1,388 583 42.0%
Equipment 1,958 1,400 558 39.9%
Data processing fees 1,156 1,242 (86) -6.9%
FDIC deposit insurance and other
regulatory 129 234 (105) -44.9%
OREO and repossession 96 (95) 191 -201.1%
Legal and professional 975 670 305 45.5%
Printing and supplies 645 525 120 22.9%
Advertising and marketing 293 453 (160) -35.3%
Amortization of goodwill 1,305 157 1,148 731.2%
Other expenses 3,818 2,910 908 31.2%
Total other expenses 23,361 18,002 5,359 29.8%
Income before income taxes 10,223 7,427 2,796 37.6%
Income taxes 3,190 1,596 1,594 99.9%
NET INCOME $7,033 $5,831 $1,202 20.6%
Per Share Information
Wtd avg number of shares
outstanding 7,826,648 6,804,425 1,022,223 15.0%
Net income $0.90 $0.86 $0.04 4.7%
Shares outstanding 7,826,648 6,804,425 1,022,223 15.0%
Book value $26.41 $23.50 $2.91 12.4%
Tangible book value (a) 21.80 22.25 (0.45) -2.0%
Dividends declared 1,957 1,565 392 25.0%
Dividends declared per share 0.25 0.23 0.02 8.7%
Dividend payout ratio 27.78% 26.74% 1.0% 3.9%
Closing price at period end $41.50 $38.50 $3.00 7.8%
Price / Earnings (LTM) 12.6 11.7 0.9 7.7%
Price / Tangible book value 190% 173% 17% 9.8%
Net interest income, f.t.e.
basis enses,
gain/loss on sale and any other signifige %
Interest income $190,on for loan losses 5,600 4,375 1,225 28.0%
103,268 80,269 22,999 28.7%
Trust Income nsactions 31 (409) 440 1 20,910 4,39
3 21.0%
Salaries 06 31.1%
Equipment 6,5%
Advertising and marketing 2,748 0 $22,373 $3,017 13.5%
Per Share Information
Wtd avg number of shares
outstanding 7,703,758 6,804,425 899,333 13.2%
Net income $3.30 $3.29 $0.01 0.3%
Shares outstanding 7,826,648 6,804,425 7,827 6,260 1,567 25.0%
$38.50 $3.00
7.8%
Price / Earnings (LTM) 12.6 11.7 0.9 7.7%
Price / Tangible book value 190% 173% 17% 9.8%
Ratios
Return on average total assets 1.06% 1.19% -0.13% -10.9%
Return on average shareholders'
equity 13.27% 15.33% -2.06% -13.4%
Net interest income, f.t.e.
basis $109,467 $85,331 $24,136 28.3%
Net interest margin 4.86% 4.79% 0.07% 1.5%
Efficiency ratio (b) 62.11% 65.11% -3.00% -4.6%
Expense ratio (b) 2.59% 2.70% -0.11% -4.1%
Balance Sheets, Period End
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,
at fair value 531,269 359,085 172,184 48.0%
Investment securities 34,194 49,680 (15,486) -31.2%
Money market assets 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%
OREO and repossessed assets 921 1,169 (248) -21.2%
Premises and equipment 29,448 24,917 4,531 18.2%
Goodwill 36,142 8,553 27,589 322.6%
Capitalized mortgage servicing
rights 3,921 3,530 391 11.1%
Other assets 128,509 114,507 14,002 12.2%
Total assets $2,601,323 $1,910,174 $691,149 36.2%
Deposits $2,066,064 $1,560,769 $505,295 32.4%
Short - term borrowings 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%
Shareholders' equity 206,737 159,936 46,801 29.3%
Total liabilities &
shareholders' equity $2,601,323 $1,910,174 $691,149 36.2%
Changes to Shareholders' Equity
For the three months ended Dec 31,
1996 1995 Change %
Balance at beginning of period $199,800 $151,924 $47,876 31.5%
Issuance of common stock --- --- --- ---
Net income 7,033 5,831 1,202 20.6%
Dividends declared (1,957) (1,565) (392) 25.0%
Issuance of employee restricted
stock --- --- --- ---
Amortization of employee restricted
stock 67 152 (85) -55.9%
Exercise of employee stock options (285) (87) (198) 227.6%
Net changes in market valuation on
securities AFS, net of tax 2,079 527 1,552 294.5%
Net changes in market
valuation on securities AF
transferred to the
investment portfolio, net --- 3,154 (3,154) -100.0%
Balance at end of period $206,737 $159,936 $46,801 29.3%
Average Balance Sheets
Loans $1,838,093 $1,352,356 $485,737 35.9%
Loans held for sale 12,010 16,267 (4,257) -26.2%
Securities available for
sale, at amortized cost 488,277 216,701 271,576 125.3%
Investment securities 35,846 191,408 (155,562) -81.3%
Money market assets 1,631 10,717 (9,086) -84.8%
Total earning assets 2,375,857 1,787,449 588,408 32.9%
Allowance for loan losses (24,470) (21,876) (2,594) -11.9%
OREO and repossessed assets 1,034 1,398 (364) -26.0%
Goodwill 36,904 8,639 28,265 327.2%
Capitalized mortgage
servicing rights 3,929 3,648 281 7.7%
Other assets, including
SFAS 115 market valuation 144,048 108,371 35,677 32.9%
Total assets $2,537,302 $1,887,629 $649,673 34.4%
Deposits $2,064,601 $1,513,304 $551,297 36.4%
Short - term borrowings 215,332 129,836 85,496 65.8%
Long - term debt 31,497 72,534 (41,037) -56.6%
Other liabilities 22,027 17,678 4,349 24.6%
Shareholders' equity 203,845 154,277 49,568 32.1%
Total liabilities &
shareholders' equity $2,537,302 $1,887,629 $649,673 34.4%
Balance Sheets, Period End
Balances as of
12-31-95 12-31-94 Change %
Loans $1,351,053 $1,296,071 $54,982 4.2%
Loans held for sale 19,125 14,014 5,111 36.5%
Securities available for sale,
at fair value 359,085 118,554 240,531 202.9%
Investment securities 49,680 317,176 (267,496) -84.3%
Money market assets 650 15,600 (14,950) -95.8%
Total earning assets 1,779,593 1,761,415 18,178 1.0%
Allowance for loan losses (22,095) (21,437) (658) -3.1%
OREO and repossessed assets 1,169 575 594 103.3%
Premises and equipment 24,917 25,130 (213) -0.8%
Goodwill 8,553 9,390 (837) -8.9%
Capitalized mortgage servicing
rights 3,530 3,428 102 3.0%
Other assets 114,507 95,387 19,120 20.0%
Total assets $1,910,174 $1,873,888 $36,286 1.9%
Deposits $1,560,769 $1,443,467 $117,302 8.1%
Short - term borrowings 116,213 155,146 (38,933) -25.1%
Long - term debt 55,997 121,589 (65,592) -53.9%
Other liabilities 17,259 18,122 (863) -4.8%
Shareholders' equity 159,936 135,564 24,372 18.0%
Total liabilities &
shareholders' equity $1,910,174 $1,873,888 $36,286 1.9%
Changes to Shareholders' Equity
For the years ended Dec 31,
1996 1995 Change %
Balance at beginning of period $159,936 $135,564 $24,372 18.0%
Issuance of common stock 32,216 --- 32,216 ---
Net income 25,390 22,373 3,017 13.5%
Dividends declared (7,827) (6,260) (1,567) 25.0%
Issuance of employee
restricted stock (371) (361) (10) 2.8%
Amortization of employee
restricted stock 310 407 (97) -23.8%
Exercise of employee stock options (411) (311) (100) 32.2%
Net changes in market valuation
on securities AFS, net of tax (2,506) 4,620 (7,126) -154.2%
Net changes in market
valuation on securities AFS
transferred to the investment
portfolio, net --- 3,904 (3,904) -100.0%
Balance at end of period $206,737 $159,936 $46,801 29.3%
Average Balance Sheets
Loans $1,730,720 $1,329,188 $401,532 30.2%
Loans held for sale 14,834 12,985 1,849 14.2%
Securities available for sale,
at amortized cost 449,835 150,562 299,273 198.8%
Investment securities 42,493 279,383 (236,890) -84.8%
Money market assets 14,503 9,718 4,785 49.2%
Total earning assets 2,252,385 1,781,836 470,549 26.4%
Allowance for loan losses (24,142) (21,564) (2,578) 12.0%
OREO and repossessed assets 947 1,078 (131) -12.2%
Goodwill 34,582 9,007 25,575 283.9%
Capitalized mortgage servicing
rights 3,881 3,565 316 8.9%
Other assets, including SFAS 115
market valuation 137,754 101,478 36,276 35.7%
Total assets $2,405,407 $1,875,400 $530,007 28.3%
Deposits $1,989,006 $1,453,878 $535,128 36.8%
Short - term borrowings 159,672 164,010 (4,338) -2.6%
Long - term debt 43,951 94,107 (50,156) -53.3%
Other liabilities 21,499 17,455 4,044 23.2%
Shareholders' equity 191,279 145,950 45,329 31.1%
Total liabilities &
shareholders' equity $2,405,407 $1,875,400 $530,007 28.3%
Credit Quality Information
Balances as of
12-31-96 12-31-95 Change %
Non-accrual loans $16,993 $12,369 $4,624 37.4%
Loans past - due
90 days and accruing 1,210 1,174 36 3.1%
Restructured loans 765 428 337 78.7%
Total non-performing loans (NPLs) 18,968 13,971 4,997 35.8%
Total foreclosed (OREO)
and repo'd assets (F/RA) 921 1,169 (248) -21.2%
Total non-performing
assets (NPAs) $19,889 $15,140 $4,749 31.4%
NPAs as a % of (loans+F/RA), p.e. 1.08% 1.12% -0.04% -3.6%
NPAs as a % of total assets, p.e. 0.76% 0.79% -0.03% -3.8%
Allow for loan losses
as % of NPLs, p.e. 124.00% 158.15% -34.15% -21.6%
Allow for loan losses
as % of total loans, p.e. 1.27% 1.64% -0.37% -22.6%
For the three months ended Dec 31,
1996 1995 Change %
Loans charged off 3,493 2,052 $1,441 70.2%
Loan recoveries 1,229 1,612 (383) -23.8%
Loans charged off,
net of recoveries $2,264 $440 $1,824 414.5%
As a % of average loans 0.49% 0.13% 0.36% 276.9%
Provision for loan losses $1,500 1,125 $375 33.3%
As a % of average loans 0.33% 0.33% 0.00% 0.0%
Capital Strength
Balances as of
12-31-96 12-31-95 Change %
Total risk-adjusted assets $1,899,472 $1,348,511 $550,961 40.9%
As a % of average total assets,
net of fair value adjustment
and goodwill 75.87% 71.77% 4.10% 5.7%
Total shareholders' equity $206,737 $159,936 $46,801 29.3%
Fair value adjustment 2,477 (29) 2,506 8641.4%
Goodwill (36,142) (8,553) (27,589) -322.6%
Total Tier 1 capital 173,072 151,354 21,718 14.3%
Maximum allowance for loan losses 23,520 16,921 6,599 39.0%
Total capital $196,592 $168,275 $28,317 16.8%
Total capital to total
risk-adjusted assets 10.35% 12.48% -2.13% -17.1%
Tier I capital to total
risk-adjusted assets 9.11% 11.22% -2.11% -18.8%
Leverage ratio 6.91% 8.05% -1.14% -14.2%
Shareholders' equity to
total assets, p.e. 7.95% 8.37% -0.42% -5.0%
Tangible shareholders'
equity to tangible assets 6.65% 7.96% -1.31% -16.5%
Credit Quality Information
Balances as of
12-31-95 12-31-94 Change %
Non-accrual loans $12,369 $17,768 ($5,399) -30.4%
Loans past-due 90 days
and accruing 1,174 1,151 23 2.0%
Restructured loans 428 470 (42) -8.9%
Total non-performing
loans (NPLs) 13,971 19,389 (5,418) -27.9%
Total foreclosed (OREO) and
repo'd assets (F/RA) 1,169 575 594 103.3%
Total non-performing
assets (NPAs) $15,140 $19,964 ($4,824) -24.2%
NPAs as a % of (loans+F/RA), p.e. 1.12% 1.54% -0.42% -27.3%
NPAs as a % of total assets, p.e. 0.79% 1.07% -0.28% -26.2%
Allow for loan losses as
% of NPLs, p.e. 158.15% 110.56% 47.59% 43.0%
Allow for loan losses as
% of total loans, p.e. 1.64% 1.65% -0.01% -0.6%
For the years ended Dec 31,
1996 1995 Change %
Loans charged off 10,326 9,161 $1,165 12.7%
Loan recoveries 4,501 5,444 (943) -17.3%
Loans charged off, net
of recoveries $5,825 $3,717 $2,108 56.7%
As a % of average loans 0.34% 0.28% 0.06% 21.4%
Provision for loan losses 5,600 4,375 $1,225 28.0%
As a % of average loans 0.32% 0.33% -0.01% -3.0%
Capital Strength
Balances as of
12-31-95 12-31-94 Change %
Total risk-adjusted assets $1,348,511 $1,269,728 $78,783 6.2%
As a % of average total
assets, net of fair value
adjustment and goodwill 71.77% 69.90% 1.87% 2.7%
Total shareholders' equity $159,936 $135,564 24,372 18.0%
Fair value adjustment (29) 8,495 (8,524) -100.3%
Goodwill (8,553) (9,391) 838 8.9%
Total Tier 1 capital 151,354 134,668 16,686 12.4%
Maximum allowance for loan
losses 16,921 15,940 981 6.2%
Total capital $168,275 $150,608 $17,667 11.7%
Total capital to total
risk-adjusted assets 12.48% 11.86% 0.62% 5.2%
Tier I capital to total
risk-adjusted assets 11.22% 10.61% 0.61% 5.7%
Leverage ratio 8.05% 7.41% 0.64% 8.6%
Shareholders' equity to
total assets, p.e. 8.37% 7.23% 1.14% 15.8%
Tangible shareholders'
equity to tangible assets 7.96% 6.77% 1.19% 17.6%
-0- CONTACT: Banknorth Group Inc., David P. Reville, 802/860-5474 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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