Banknorth Reports Fourth Quarter and 2004 Earnings.PORTLAND, Maine Portland is the largest city in the U.S. state of Maine, with a 2004 population of 63,882. Portland is Maine's cultural, social and economic capital. Tourists are drawn to Portland's historic Old Port district along Portland Harbor, which is at the mouth of the Fore River and part -- (Fourth Quarter Earnings Conference Call at 9:00 a.m. Eastern Time January January: see month. 20, 2005. Dial-in number for USA and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of is 800 638-5439. International dial-in number is 617 614-3945. Passcode for both numbers is 47614076. Replay number for USA and Canada is 888 286-8010. International replay dial-in number is 617 801-6888. Replay passcode is 75674933. Live webcast and webcast replay available at www.banknorth.com/investorrelations.) Banknorth Group Inc. (NYSE NYSE See: New York Stock Exchange : BNK BNK Bangkok BNK Bundesverband Niedergelassener Kardiologen eV BNK Banking ) reported earnings for 2004 of $304.6 million as compared to $350.8 million in 2003. For the fourth quarter ended December December: see month. 31, 2004, Banknorth's earnings were $20.7 million as compared to $91.6 million for the same quarter a year ago. The declines in earnings for both the quarter and the year were attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the Company's previously-announced deleveraging strategy and certain merger and consolidation costs associated with the Company's pending transaction with The Toronto-Dominion Bank The Toronto-Dominion Bank (TD) (TSX: TD NYSE: TD TYO: 8640 ) is a bank headquartered in Toronto, Ontario, Canada. It is one of Canada's Big Five banks, being the second largest bank in the country by assets and market capitalization. , or "TD". Earnings per 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. share for 2004 were $1.75 as compared to $2.15 in 2003. Earnings per diluted share were 12 cents for the quarter ended December 31, 2004 as compared to 55 cents for the quarter ended December 31, 2003. Exclusive of the after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. impact of merger and consolidation costs and of the Company's balance sheet deleveraging, earnings for 2004 were $396.6 million up 11% as compared to $356.0 million for 2003 while earnings for the quarter ended December 31, 2004 were $104.6 million up 13% as compared to $92.4 million for the quarter ended December 31, 2003. Exclusive of the after-tax impact of merger and consolidation costs and of the Company's balance sheet deleveraging, earnings per diluted share for 2004 increased by 5% to $2.28 from $2.18 in 2003 while earnings for the quarter ended December 31, 2004 increased to 58 cents as compared to 56 cents for the quarter ended December 31, 2003. Earnings per diluted share were impacted primarily by two events in the fourth quarter. First, the after-tax impact associated with the Company's previously-announced deleveraging strategy of $51.6 million represented 29 cents per diluted share for the quarter ended December 31, 2004. Second, merger and consolidation costs of $32.3 million represented an additional 17 cents per diluted share. A majority of the $32.3 million of merger and consolidation costs was due to the payment of certain long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. incentive payments and other expenses related to the acquisition of 51% of Banknorth by TD. In addition to the above, as a result of the pending transaction with TD, a significant number of Banknorth employees exercised stock options in the fourth quarter of 2004. As a result, the number of weighted average shares outstanding on a diluted basis increased by 3.2 million shares in the fourth quarter ended December 31, 2004, resulting in a decrease in earnings, exclusive of the after-tax impact of merger and consolidation costs and of the Company's balance sheet deleveraging, of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1 cent per share. "Our core banking business remains strong," said 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 J. Ryan Ryan may refer to: Places
execute - execution our growth strategy going forward." Ryan added. Total average loans and leases in 2004 were $17.7 billion, up 13% from $15.6 billion in 2003, led by increases in commercial business loans and leases of 17%, commercial real estate mortgages of 15% and consumer loans and leases of 14%. Exclusive of acquisitions, total average commercial and consumer loans increased by 11% in 2004. Total average core deposits consisting of noninterest bearing deposits, retail money market and NOW accounts and regular savings accounts Savings Account A deposit account intended for funds that are expected to stay in for the short term. A savings account offers lower returns than the market rates. Notes: increased to $14.2 billion in 2004, up 16% from $12.3 billion in 2003, led by increases in noninterest bearing deposits of 24% and retail money market and NOW accounts of 15%, which more than offset a decline in retail certificates of deposit of 8%. Exclusive of acquisitions, total average core deposits increased by 9% in 2004. The Company's capital ratios improved in 2004. At December 31, 2004, the Company's Tier 1 leverage capital ratio was 7.58% and its total risk based capital ratio was 12.16% as compared to 6.65% and 11.29%, respectively, at December 31, 2003. Tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. equity to tangible assets Tangible Asset An asset that has a physical form such as machinery, buildings and land. Notes: This is the opposite of an intangible asset such as a patent or trademark. Whether an asset is tangible or intangible isn't inherently good or bad. at December 31, 2004 was 6.45%, up 108 basis points from 5.37% at December 31, 2003. 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. at December 31, 2004 was $3.2 billion, up from $2.5 billion at December 31, 2003. Excluding the net gain/loss on the sale of securities, noninterest income increased 7% in 2004 over 2003 led by increases in wealth management services income of 25%, investment planning services income of 24%, net merchant banking and electronic banking income of 21%, deposit services income of 12% and insurance brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. commissions of 10%, all of which more than offset a decline in other noninterest income of 21% due primarily to a decline in covered call option covered call option A call option sold short by an investor owning the underlying stock. If the option is later exercised against the short seller of the option, the seller is covered by the stock that is owned. Compare naked option. income. For the fourth quarter ended December 31, 2004, excluding the net gain/loss on the sale of securities, noninterest income increased 8% over the same quarter a year ago. Excluding merger and consolidation costs and the prepayment penalties Prepayment penalty A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. associated with the Company's balance sheet deleveraging, noninterest expense increased by 8.5% in 2004, the majority of which was associated with the acquisitions of CCBT CCBT Comprehensive Cognitive Behavioral Therapy Financial Companies and Foxborough Foxborough or Foxboro, town (1990 pop. 14,637), Norfolk co., SE Mass.; settled 1704, inc. 1778. During the Revolutionary War cannons and cannonballs were manufactured. Modern industry centers on the production of precision instruments. Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. . The Company's cash efficiency ratio exclusive of these items and amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. improved slightly to 50.38% in 2004 as compared to 50.94% in 2003. The Company's net interest margin during the three months ended December 31, 2004 increased to 3.87%, up 19 basis points from 3.68% for the quarter ended September September: see month. 30, 2004. The margin was positively impacted by the Company's balance sheet deleveraging. For the quarter ended December 31, 2004, total nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. ("NPAs") increased to $81 million from $68 million for the quarter ended September 30, 2004 due primarily to an increase in nonperforming assets associated with one large commercial business loan. "Despite an uptick Uptick A transaction occurring at price above its previous transaction. In order for an uptick to occur, a transaction price must be followed by an increased transaction price. in our NPAs, our overall asset quality remains strong," said Mr. Ryan. Total net charge-offs for the year ended December 31, 2004 of $36.5 million declined by $.8 million as compared to the year ended December 31, 2003. The Company's ratio of nonperforming assets to total assets was just 28 basis points at December 31, 2004 up slightly from 24 basis points at December 31, 2003. At December 31, 2004, the Company's allowance for loan and lease losses to nonperforming loans was 322% and the Company's allowance as a percentage of total outstanding loans was 1.34%. In 2004, the Company completed acquisitions in Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. of
Foxborough Savings Bank, which had $242 million in assets, and CCBT
Financial Companies, which had $1.3 billion in assets. The Company also
completed the acquisition of Drake drake1. male duck. 2. loliumtemulentum. , Swan swan, common name for a large aquatic bird of both hemispheres, related to ducks and geese. It has a long, gracefully curved neck and an extremely long, convoluted trachea which makes possible its far-carrying calls. & Crocker Crock´er n. 1. A potter. Insurance Agency of Orleans, Massachusetts Orleans is a town in Barnstable County, Massachusetts, Barnstable County coextensive with Cape Cod. The population was 6,341 at the 2000 census. For geographic and demographic information on the census-designated place Orleans, please see the article Orleans (CDP), . The Company anticipates closing the acquisition of BostonFed Bancorp, Inc., with assets of $1.5 billion, on or about January 21, 2005. On August 26, 2004, Banknorth Group, Inc. and TD announced that they entered into a definitive merger agreement for TD to acquire 51% of the outstanding shares of Banknorth, subject to receipt of required regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and shareholder approvals and other customary conditions. A special meeting of Banknorth shareholders to vote on the merger agreement will be held on February February: see month. 18, 2005. At December 31, 2004, Banknorth Group Inc., headquartered in Portland, Maine, had assets of $28.7 billion. The Company's banking subsidiary, Banknorth, N.A., operates banking divisions in Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). (Banknorth Connecticut); Maine Maine, ship Maine, U.S. battleship destroyed (Feb. 15, 1898) in Havana harbor by an explosion that killed 260 men. The incident helped precipitate the Spanish-American War (Apr., 1898). Commanded by Capt. Charles Sigsbee, the ship had been sent (Jan. (Peoples Heritage Bank); Massachusetts (Banknorth Massachusetts); 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). (Bank of New Hampshire); New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (Evergreen evergreen, term commonly used as synonymous with conifer and applied also to all those broad-leaved plants that bear green leaves throughout the year. Of the latter, most are plants of the tropics, subtropics, and other areas where the growing season is prolonged (e. Bank); and Vermont Vermont (vərmŏnt`) [Fr.,=green mountain], New England state of the NE United States. It is bordered by New Hampshire, across the Connecticut R. (Banknorth Vermont). The Company and Banknorth, N.A. also operate subsidiaries and divisions in insurance, money management, 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 , mortgage banking, government banking and other 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. and offers investment products in association with PrimeVest Financial Services, Inc. The Company's website is at www.banknorth.com. Note: This news release contains financial information determined by methods other than in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with accounting principles generally accepted in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). The Company's management uses these non-GAAP measures in its analysis of the Company's performance. These measures typically adjust GAAP performance measures to exclude the effects of charges and expenses related to the consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of mergers and acquisitions and costs related to the integration of merged entities, as well as the amortization of intangible assets in the case of "cash basis" performance measures. These non-GAAP measures also may exclude other significant gains or losses that are unusual in nature, such as security gains and prepayment penalties. Because these items and their impact on the Company's performance are difficult to predict, management believes that presentations of financial measures excluding the impact of these items provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's core businesses. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. This news release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. with respect to the financial condition, results of operations and business of Banknorth. Forward-looking statements are subject to various factors which could cause actual results to differ materially from these estimates. These factors include, but are not limited, to, changes in general economic conditions, interest rates, deposit flows, loan demand, competition, legislation or regulation and accounting principles, policies or guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. , as well as other economic, competitive, governmental, regulatory and accounting and technological factors affecting Banknorth's operations. In addition, acquisitions may result in large one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges to income, may not produce revenue enhancements revenue enhancement An increase in revenues, especially by way of increased taxes. Revenue enhancement includes reducing taxpayer deductions and eliminating tax credits. or cost savings at levels or within time frames originally anticipated and may result in unforeseen integration difficulties. Investors are encouraged to access Banknorth's periodic reports filed with the Securities and Exchange Commission for financial and business information regarding Banknorth, including information which could affect Banknorth's forward-looking statements.
Banknorth Group, Inc. and Subsidiaries
----------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS (Unaudited)
Dec. 31, Dec. 31, % Sept. 30, %
(In thousands) 2004 2003 Change 2004 Change
------------ ------------ ------ ------------ ------
Cash and due
from banks $541,994 $669,686 -19% $575,840 -6%
Federal funds
sold and other
short-term
investments 2,312 4,645 -50% 4,031 -43%
Securities
available for
sale 6,905,765 7,122,992 -3% 7,369,269 -6%
Securities held
to maturity 87,013 124,240 -30% 94,026 -7%
Loans and leases
held for sale 51,693 41,696 24% 47,487 9%
Loans and
leases:
Residential
real estate
mortgages 3,081,217 2,710,483 14% 3,096,739 -1%
Commercial
real estate
mortgages 6,249,513 5,528,862 13% 6,182,835 1%
Commercial
business
loans and
leases 3,928,594 3,287,094 20% 3,856,296 2%
Consumer
loans and
leases 5,333,670 4,819,523 11% 5,274,921 1%
------------ ------------ ------------
Total loans
and leases 18,592,994 16,345,962 14% 18,410,791 1%
Less:
Allowance
for loan and
lease losses 243,152 232,287 5% 242,885 0%
------------ ------------ ------------
Loans and
leases,
net 18,349,842 16,113,675 14% 18,167,906 1%
Premises and
equipment 300,120 264,818 13% 285,940 5%
Goodwill 1,365,780 1,126,639 21% 1,369,112 0%
Identifiable
intangible
assets 50,376 36,415 38% 52,593 -4%
Bank owned life
insurance 523,129 488,756 7% 517,359 1%
Other assets 509,786 460,173 11% 502,521 1%
------------ ------------ ------------
$28,687,810 $26,453,735 8% $28,986,084 -1%
============ ============ ============
----------------- ------------ ---------------------------------------
Liabilities & Shareholders' Equity
Deposits:
Regular
savings $2,546,018 $2,460,522 3% $2,572,473 -1%
Retail money
market and
NOW accounts 7,907,513 7,130,532 11% 7,924,839 0%
Retail
certificates
of deposit 4,484,370 4,733,104 -5% 4,646,725 -3%
Brokered
deposits 576 - NM 575 0%
Noninterest
bearing
deposits 4,289,104 3,577,027 20% 4,225,861 1%
------------ ------------ ------------
Total
deposits 19,227,581 17,901,185 7% 19,370,473 -1%
Borrowings from
the Federal
Home Loan Bank 1,997,336 1,495,385 34% 1,479,160 35%
Federal funds
purchased and
securities sold
under repurchase
agreements 2,952,476 3,659,550 -19% 3,453,476 -15%
Subordinated
debt and senior
notes 346,879 348,293 0% 354,684 -2%
Other borrowings 383,268 84,361 354% 759,369 -50%
Junior
subordinated
debentures 310,746 - NM 310,746 0%
Company
obligated,
mandatorily
redeemable
securities of
subsidiary
trusts holding
solely parent
junior
subordinated
debentures - 295,275 -100% - NM
Other
liabilities 293,410 149,167 97% 211,934 38%
------------ ------------ ------------
Total
liabilities 25,511,696 23,933,216 7% 25,939,842 -2%
------------ ------------ ------------
Shareholders'
equity 3,176,114 2,520,519 26% 3,046,242 4%
------------ ------------ ------------
$28,687,810 $26,453,735 8% $28,986,084 -1%
============ ============ ============
Banknorth Group, Inc. and Subsidiaries
----------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(In thousands, except per share data) Year Ended
December 31, %
-----------------------
2004 2003 Change
----------- ----------- ------
Interest and dividend income $1,257,005 $1,192,969 5%
Interest expense 323,623 352,138 -8%
----------- -----------
Net interest income 933,382 840,831 11%
Provision for loan and lease
losses 40,340 42,301 -5%
----------- -----------
Net interest income after
provision for loan and
lease losses 893,042 798,530 12%
----------- -----------
Noninterest income:
Deposit services 109,321 97,323 12%
Insurance brokerage commissions 50,311 45,714 10%
Merchant and electronic banking
income, net 50,564 41,778 21%
Wealth management services 39,788 31,956 25%
Bank owned life insurance 23,282 22,930 2%
Investment planning
services 19,418 15,692 24%
Net gains/(losses) on sales of
securities (7,701) 42,460 -118%
Other noninterest income 54,816 69,306 -21%
----------- -----------
339,799 367,159 -7%
----------- -----------
Noninterest expense:
Salaries and employee
benefits 356,611 326,621 9%
Occupancy and equipment expense 112,372 106,659 5%
Data processing 43,141 40,940 5%
Advertising and marketing 25,550 22,000 16%
Amortization of identifiable
intangible assets 8,627 8,946 -4%
Merger and consolidation costs (1) 49,635 8,104 512%
Prepayment penalties on borrowings 61,546 30,490 102%
Other noninterest expense 107,619 97,510 10%
----------- -----------
765,101 641,270 19%
----------- -----------
Income before income tax expense 467,740 524,419 -11%
Income tax expense 163,097 173,660 -6%
----------- -----------
Net Income $304,643 $350,759 -13%
=========== ===========
Weighted average shares outstanding:
Basic 170,766 160,914 6%
Diluted 174,158 163,520 7%
Earnings per share:
Basic $1.78 $2.18 -18%
Diluted 1.75 2.15 -19%
(In thousands, except per share data) Three Months Ended
December 31, %
------------------------
2004 2003 Change
----------- ----------- ------
Interest and dividend income $329,846 $290,414 14%
Interest expense 83,783 77,126 9%
----------- -----------
Net interest income 246,063 213,288 15%
Provision for loan and lease
losses 10,670 10,400 3%
----------- -----------
Net interest income after
provision for loan and
lease losses 235,393 202,888 16%
----------- -----------
Noninterest income:
Deposit services 28,326 25,881 9%
Insurance brokerage commissions 11,880 11,480 3%
Merchant and electronic banking
income, net 13,368 10,542 27%
Wealth management services 10,489 8,470 24%
Bank owned life insurance 5,779 5,978 -3%
Investment planning
services 4,799 4,765 1%
Net gains/(losses) on sales of
securities (17,761) 2,682 -762%
Other noninterest income 13,711 14,637 -6%
----------- -----------
70,591 84,435 -16%
----------- -----------
Noninterest expense:
Salaries and employee
benefits 90,138 81,451 11%
Occupancy and equipment expense 29,320 26,731 10%
Data processing 11,568 9,881 17%
Advertising and marketing 5,445 5,430 0%
Amortization of identifiable
intangible assets 2,260 2,324 -3%
Merger and consolidation costs (1) 38,286 1,316 2809%
Prepayment penalties on borrowings 61,546 - NM
Other noninterest expense 28,796 28,543 1%
----------- -----------
267,359 155,676 72%
----------- -----------
Income before income tax expense 38,625 131,647 -71%
Income tax expense 17,927 40,085 -55%
----------- -----------
Net Income $20,698 $91,562 -77%
=========== ===========
Weighted average shares outstanding:
Basic 177,071 162,149 9%
Diluted 179,953 165,685 9%
Earnings per share:
Basic $0.12 $0.56 -79%
Diluted 0.12 0.55 -78%
(1) Merger and consolidation costs consist of merger charges, certain
asset write-downs and branch closing costs.
NM - calculated % change is not meaningful
Banknorth Group, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (Unaudited)
----------------------------------------------------------------------
(In thousands, except per share data)
Year Ended December 31, %
------------------------
2004 2003 Change
----------- ----------- ---------
Net interest income $933,382 $840,831 11%
Net income $304,643 $350,759 -13%
Shares outstanding (end of period) 179,298 162,188 11%
Weighted average shares outstanding:
Basic 170,766 160,914 6%
Diluted 174,158 163,520 7%
Earnings per share:
Basic $1.78 $2.18 -18%
Diluted $1.75 $2.15 -19%
Shareholders' equity (end of period) $3,176,114 $2,520,519 26%
Book value per share (end of period) $17.71 $15.54 14%
Tangible book value per share (end
of period) $9.82 $8.37 17%
Nominal
RATIOS & OTHER INFORMATION: Inc/(Dec)
---------
Net interest margin (net interest
income as a % of average earning
assets) (1) 3.72% 3.66% 0.06%
Net interest spread (yield on
earning assets minus yield on
interest-bearing liabilities) (1) 3.47% 3.41% 0.06%
Return on average assets 1.08% 1.37% -0.29%
Return on average equity 10.63% 14.51% -3.88%
At period end:
------------------------------------
Tier 1 leverage capital ratio 7.58% 6.65% 0.93%
Tangible equity/tangible assets 6.45% 5.37% 1.08%
Total risk based capital ratio 12.16% 11.29% 0.87%
Non-performing loans $77,559 $59,762 30%
Total non-performing assets $81,103 $63,103 29%
Non-performing loans as a % of total
loans 0.42% 0.37% 0.05%
Non-performing assets as a % of
total assets 0.28% 0.24% 0.04%
Full service banking offices 386 359
FINANCIAL INFORMATION AND RATIOS EXCLUDING CERTAIN ITEMS (Non-GAAP
Financial Information):
Noninterest income as a percent of
total income (2) 27.13% 27.86% -0.73%
Merger and consolidation costs on a
net of tax basis (3) $40,395 $5,275 666%
Per diluted share: $0.23 $0 667%
Deleveraging losses, net of tax
basis (4) $51,560 - NM
Per diluted share: $0.30 - NM
Noninterest expense (5) $653,919 $602,676 9%
Return on average assets (6) 1.41% 1.39% 0.02%
Cash return on average tangible
assets (6) (7) 1.48% 1.45% 0.03%
Return on average equity (6) 13.84% 14.71% -0.87%
Cash return on average tangible
equity (6) (7) 25.99% 26.60% -0.61%
Efficiency ratio (8) 51.05% 51.71% -0.66%
Cash efficiency ratio (9) 50.38% 50.94% -0.56%
------------------------------------ ---------------------------------
Three Months Ended
December 31, %
-------------------------
2004 2003 Change
------------ ----------- ---------
Net interest income $246,063 $213,288 15%
Net income $20,698 $91,562 -77%
Shares outstanding (end of period) 179,298 162,188 11%
Weighted average shares outstanding:
Basic 177,071 162,149 9%
Diluted 179,953 165,685 9%
Earnings per share:
Basic $0.12 $0.56 -79%
Diluted $0.12 $0.55 -78%
Shareholders' equity (end of period) $3,176,114 $2,520,519 26%
Book value per share (end of period) $17.71 $15.54 14%
Tangible book value per share (end
of period) $9.82 $8.37 17%
Nominal
RATIOS & OTHER INFORMATION: Inc/(Dec) Inc/(Dec)
----------- ---------
Net interest margin (net interest
income as a % of average earning
assets) (1) 3.87% 3.65% 0.22%
Net interest spread (yield on
earning assets minus yield on
interest-bearing liabilities) (1) 3.59% 3.42% 0.17%
Return on average assets 0.29% 1.39% -1.10%
Return on average equity 2.66% 14.72% -12.06%
At period end:
------------------------------------
Tier 1 leverage capital ratio 7.58% 6.65% 0.93%
Tangible equity/tangible assets 6.45% 5.37% 1.08%
Total risk based capital ratio 12.16% 11.29% 0.87%
Non-performing loans $77,559 $59,762 30%
Total non-performing assets $81,103 $63,103 29%
Non-performing loans as a % of total
loans 0.42% 0.37% 0.05%
Non-performing assets as a % of
total assets 0.28% 0.24% 0.04%
Full service banking offices 386 359
FINANCIAL INFORMATION AND RATIOS EXCLUDING CERTAIN ITEMS (Non-GAAP
Financial Information):
Noninterest income as a percent of
total income (2) 26.42% 27.71% -1.29%
Merger and consolidation costs on a
net of tax basis (3) $32,316 $855 3680%
Per diluted share: $0.17 $0.01 1600%
Deleveraging losses, net of tax
basis (4) $51,560 - NM
Per diluted share: $0.29 - NM
Noninterest expense (5) $167,528 $154,360 9%
Return on average assets (6) 1.46% 1.41% 0.05%
Cash return on average tangible
assets (6) (7) 1.53% 1.49% 0.04%
Return on average equity (6) 13.43% 14.86% -1.43%
Cash return on average tangible
equity (6) (7) 24.80% 27.86% -3.06%
Efficiency ratio (8) 50.10% 52.32% -2.22%
Cash efficiency ratio (9) 49.42% 51.53% -2.11%
----------------------------------------------------------------------
(1) Adjusted to fully taxable equivalent basis.
(2) Excludes securities gains/(losses).
(3) Merger and consolidation costs consist of merger charges, certain
asset write-downs and branch closing costs.
(4) Deleveraging losses consist of losses on securities sales and
prepayment penalties on borrowings incurred in connection with a
balance sheet restructuring in October 2004.
(5) Excludes pre-tax merger and consolidation costs and prepayment
penalties on borrowings.
(6) Excludes merger and consolidation costs and deleveraging losses,
net of related tax benefits.
(7) Cash ratios reflect an adjustment to add back the amortization of
intangible assets, net of related tax benefits.
(8) Excludes securities gains/(losses), prepayment penalties on
borrowings, and merger and consolidation costs.
(9) Excludes securities gains/(losses), prepayment penalties on
borrowings, merger and consolidation costs, and amortization of
intangible assets. Ratios are annualized where appropriate.
Banknorth Group, Inc. and Subsidiaries
----------------------------------------------------------------------
CONSOLIDATED AVERAGE BALANCE SHEETS (Unaudited)
Three Months Ended December 31,
----------------------------------------------------------------------
2004 2003
----------------------------------------------------------------------
Average Yield/ Average Yield/
(Dollars in thousands) Balance Rate Balance Rate
----------------------------------------------------------------------
Assets
Loans and leases (1)
Residential real estate
mortgages $3,138,974 4.94% $2,718,881 5.25%
Commercial real estate
mortgages 6,250,243 5.95% 5,392,549 5.78%
Commercial loans and
leases 3,853,844 5.19% 3,233,277 4.83%
Consumer loans and leases 5,308,272 5.28% 4,676,259 5.29%
------------ ------------
18,551,333 5.43% 16,020,966 5.36%
Securities 6,974,995 4.51% 7,432,088 4.09%
Federal funds sold and other
short-term investments 12,461 0.95% 5,176 2.00%
Securities purchased under
agreements to resell 1,667 1.75% - 0.00%
------------ ------------
Total earning assets 25,540,456 5.18% 23,458,230 4.96%
Bank owned life insurance 519,506 484,428
Noninterest-earning assets 2,516,439 2,124,138
------------ ------------
Total assets $28,576,401 $26,066,796
============ ============
Liabilities & Shareholders'
Equity
Interest-bearing deposits:
Regular savings $2,568,297 0.29% $2,476,385 0.37%
Retail money market and
NOW accounts 8,057,876 0.86% 6,982,431 0.79%
Retail certificates of
deposit 4,539,483 2.04% 4,803,437 2.10%
Brokered deposits 576 2.38% - 0.00%
------------ ------------
Total interest-bearing
deposits 15,166,232 1.12% 14,262,253 1.16%
Borrowed funds 5,805,974 2.83% 5,643,402 2.51%
------------ ------------
Total interest-bearing
liabilities 20,972,206 1.59% 19,905,655 1.54%
Noninterest bearing deposits 4,319,603 3,494,692
Other liabilities 187,705 198,424
Shareholders' equity 3,096,887 2,468,025
------------ ------------
Total liabilities and
shareholders' equity $28,576,401 $26,066,796
============ ============
Net earning assets $4,568,250 $3,552,575
============ ============
Net interest income (fully
taxable equivalent) $247,821 $214,865
Less: fully taxable
equivalent adjustments (1,758) (1,577)
------------ ------------
Net interest income $246,063 $213,288
============ ============
Net interest rate spread
(fully taxable equivalent) 3.59% 3.42%
Net interest margin (fully
taxable equivalent) 3.87% 3.65%
----------------------------------------------------------------------
(1) Loans and leases include portfolio loans and leases, loans held
for sale and nonperforming loans.
Banknorth Group, Inc. and Subsidiaries
----------------------------------------------------------------------
CONSOLIDATED AVERAGE BALANCE SHEETS (Unaudited)
Year Ended December 31,
----------------------------------------------------------------------
2004 2003
----------------------------------------------------------------------
Average Yield/ Average Yield/
(Dollars in thousands) Balance Rate Balance Rate
----------------------------------------------------------------------
Assets
Loans and leases (1)
Residential real estate
mortgages $2,997,572 5.01% $2,839,969 5.61%
Commercial real estate
mortgages 5,959,510 5.79% 5,162,413 6.06%
Commercial loans and
leases 3,686,919 4.92% 3,153,293 5.10%
Consumer loans and leases 5,090,536 5.13% 4,477,532 5.61%
------------ ------------
17,734,537 5.29% 15,633,207 5.65%
Securities 7,501,956 4.33% 7,464,162 4.22%
Federal funds sold and other
short-term investments 9,567 0.86% 11,004 1.46%
Securities purchased under
agreements to resell 419 1.75% - 0.00%
------------ ------------
Total earning assets 25,246,479 5.00% 23,108,373 5.19%
Bank owned life insurance 503,957 465,446
Noninterest-earning assets 2,422,988 2,042,528
------------ ------------
Total assets $28,173,424 $25,616,347
============ ============
Liabilities & Shareholders'
Equity
Interest-bearing deposits:
Regular savings $2,563,838 0.29% $2,399,179 0.46%
Retail money market and
NOW accounts 7,678,644 0.81% 6,652,030 0.89%
Retail certificates of
deposit 4,647,746 1.96% 5,027,739 2.36%
Brokered deposits 272 2.03% - 0.00%
------------ ------------
Total interest-bearing
deposits 14,890,500 1.08% 14,078,948 1.34%
Borrowed funds 6,245,995 2.60% 5,693,420 2.87%
------------ ------------
Total interest-bearing
liabilities 21,136,495 1.53% 19,772,368 1.78%
Noninterest bearing deposits 3,987,311 3,224,035
Other liabilities 184,078 203,018
Shareholders' equity 2,865,540 2,416,926
------------ ------------
Total liabilities and
shareholders' equity $28,173,424 $25,616,347
============ ============
Net earning assets $4,109,984 $3,336,005
============ ============
Net interest income (fully
taxable equivalent) $939,853 $846,727
Less: fully taxable
equivalent adjustments (6,471) (5,896)
------------ ------------
Net interest income $933,382 $840,831
============ ============
Net interest rate spread
(fully taxable equivalent) 3.47% 3.41%
Net interest margin (fully
taxable equivalent) 3.72% 3.66%
----------------------------------------------------------------------
(1) Loans and leases include portfolio loans and leases, loans held
for sale and nonperforming loans.
Banknorth Group, Inc. and Subsidiaries
----------------------------------------------------------------------
Asset Quality (unaudited)
(Dollars in thousands)
12/31/ 9/30/ 6/30/ 3/31/ 12/31/
2004 2004 2004 2004 2003
--------- --------- --------- --------- ---------
Non-performing assets:
Residential
real estate
mortgages $7,846 $7,274 $7,870 $7,990 $7,157
Commercial real
estate
mortgages 29,948 33,249 27,951 24,619 19,700
Commercial
business loans
and leases 32,421 18,573 23,636 28,978 24,412
Consumer loans
and leases 7,344 6,827 5,685 6,267 8,493
--------- --------- --------- --------- ---------
Total non-
performing loans
and leases 77,559 65,923 65,142 67,854 59,762
Other non-
performing
assets, net 3,544 2,056 2,025 2,700 3,341
--------- --------- --------- --------- ---------
Total non-
performing
assets $81,103 $67,979 $67,167 $70,554 $63,103
========= ========= ========= ========= =========
Allowance for
loan and lease
losses $243,152 $242,885 (1)$247,620 $233,297 $232,287
Liability for
unfunded credit
commitments 6,707 6,600
--------- ---------
Total allowance
for credit losses$249,859 $249,485
========= =========
Net loan charge-
offs (recoveries):
Residential
real estate
mortgages ($9) $86 ($42) ($72) $10
Commercial real
estate
mortgages (486) (530) (663) (446) (168)
---------------------------------------------------
Total real estate
mortgages (495) (444) (705) (518) (158)
Commercial
business loans
and leases 5,594 2,939 3,387 1,785 2,402
Consumer loans
and leases 5,305 6,310 6,160 7,223 8,111
--------- --------- --------- --------- ---------
Total net charge-
offs $10,404 $8,805 $8,842 $8,490 $10,355
========= ========= ========= ========= =========
Ratios:
Allowance for
credit losses to
total loans and
leases 1.34% 1.36%(1) 1.37% 1.40% 1.42%
Allowance for
credit losses to
non-performing
loans 322.15% 378.45%(1) 380.12% 343.82% 388.69%
Non-performing
loans to total
loans and leases 0.42% 0.36% 0.36% 0.41% 0.37%
Non-performing
assets to total
assets 0.28% 0.23% 0.23% 0.26% 0.24%
Net charge-offs
to average loans
- QTD (2) 0.22% 0.19% 0.20% 0.21% 0.26%
----------------------------------------------------------------------
(1) In September 2004, $6.6 million was transferred from the allowance
for loan and lease losses to a liability account related to
reserves for off-balance sheet loan commitments.
(2) Annualized.
Banknorth Group, Inc. and Subsidiaries
----------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(In thousands, except per share data)
Three Months Ended
-------------------------------------------------
12/31/ 9/30/ 6/30/ 3/31/ 12/31/
2004 2004 2004 2004 2003
--------------------------------------------------
Interest and
dividend income $329,846 $325,361 $309,146 $292,652 $290,414
Interest expense 83,783 85,701 79,096 75,043 77,126
--------- --------- --------- --------- ---------
Net interest income 246,063 239,660 230,050 217,609 213,288
Provision for loan
and lease losses 10,670 10,670 9,500 9,500 10,400
--------- --------- --------- --------- ---------
Net interest
income after
provision
for loan and
lease losses 235,393 228,990 220,550 208,109 202,888
--------- --------- --------- --------- ---------
Noninterest income:
Deposit services 28,326 27,583 27,260 26,153 25,881
Insurance
brokerage
commissions 11,880 12,417 12,278 13,736 11,480
Merchant and
electronic
banking income,
net 13,368 13,723 13,069 10,404 10,542
Wealth management
services 10,489 10,280 9,870 9,149 8,470
Bank owned life
insurance 5,779 5,732 6,275 5,496 5,978
Investment
planning
services 4,799 4,634 5,146 4,839 4,765
Net
gains/(losses)
on sales of
securities (17,761) 3,124 3,355 3,581 2,682
Other noninterest
income 13,711 14,020 12,223 14,859 14,637
--------- --------- --------- --------- ---------
70,591 91,513 89,476 88,217 84,435
--------- --------- --------- --------- ---------
Noninterest expense:
Salaries and
employee
benefits 90,138 91,935 87,005 87,534 81,451
Occupancy and
equipment
expense 29,320 27,940 27,512 27,599 26,731
Data processing 11,568 11,118 10,018 10,436 9,881
Advertising and
marketing 5,445 6,278 6,303 7,523 5,430
Amortization of
identifiable
intangible assets 2,260 2,379 2,084 1,904 2,324
Merger and
consolidation
costs (1) 38,286 5,603 4,135 1,614 1,316
Prepayment
penalties on
borrowings 61,546 - - - -
Other noninterest
expense 28,796 28,945 26,769 23,109 28,543
--------- --------- --------- --------- ---------
267,359 174,198 163,826 159,719 155,676
--------- --------- --------- --------- ---------
Income before income
tax expense 38,625 146,305 146,200 136,607 131,647
Income tax expense 17,927 48,534 50,353 46,280 40,085
--------- --------- --------- --------- ---------
Net Income $20,698 $97,771 $95,847 $90,327 $91,562
========= ========= ========= ========= =========
Weighted average
shares outstanding:
Basic 177,071 173,271 169,637 162,965 162,149
Diluted 179,953 176,756 173,109 166,657 165,685
Earnings per share:
Basic $0.12 $0.56 $0.57 $0.55 $0.56
Diluted 0.12 0.55 0.55 0.54 0.55
----------------------------------------------------------------------
(1) Merger and consolidation costs consist of merger charges, certain
asset write-downs and branch closing costs.
Banknorth Group, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (Unaudited)
----------------------------------------------------------------------
(In thousands, except per share data)
Three Months Ended
------------------------------------
12/31/2004 9/30/2004 6/30/2004
------------------------------------
Net interest income $246,063 $239,660 $230,050
Net income $20,698 $97,771 $95,847
Shares outstanding (end of
period) 179,298 174,023 172,546
Weighted average shares
outstanding:
Basic 177,071 173,271 169,637
Diluted 179,953 176,756 173,109
Earnings per share:
Basic $0.12 $0.56 $0.57
Diluted $0.12 $0.55 $0.55
Shareholders' equity (end of
period) $3,176,114 $3,046,242 $2,866,692
Book value per share (end of
period) $17.71 $17.50 $16.61
Tangible book value per share
(end of period) $9.82 $9.34 $8.39
RATIOS & OTHER INFORMATION:
Net interest margin (net
interest income as a % of
average earning assets) (1) 3.87% 3.68% 3.66%
Net interest spread (yield on
earning assets minus yield on
interest-bearing liabilities) (1) 3.59% 3.42% 3.43%
Return on average assets 0.29% 1.33% 1.36%
Return on average equity 2.66% 13.24% 13.54%
At period end:
--------------------------------
Tier 1 leverage capital ratio 7.58% 6.95% 6.80%
Tangible equity/tangible assets 6.45% 5.89% 5.20%
Total risk based capital ratio 12.16% 11.62% 11.13%
Non-performing loans $77,559 $65,923 $65,142
Total non-performing assets $81,103 $67,979 $67,167
Non-performing loans as a % of
total loans 0.42% 0.36% 0.36%
Non-performing assets as a % of
total assets 0.28% 0.23% 0.23%
Full service banking offices 386 387 389
FINANCIAL INFORMATION AND RATIOS EXCLUDING CERTAIN ITEMS (Non-GAAP
Financial Information):
Noninterest income as a percent
of total income (2) 26.42% 26.94% 27.24%
Merger and consolidation costs
on a net of tax basis (3) $32,316 $4,342 $2,687
Per diluted share: $0.17 $0.03 $0.02
Deleveraging, net of tax basis (4) $51,560 - -
Per diluted share: $0.29 - -
Noninterest expense (5) $167,528 $168,595 $159,691
Return on average assets (6) 1.46% 1.39% 1.40%
Cash return on average tangible
assets (6) (7) 1.53% 1.49% 1.49%
Return on average equity (6) 13.43% 13.82% 13.92%
Cash return on average tangible
equity (6) (7) 24.80% 27.20% 26.67%
Efficiency ratio (8) 50.10% 51.39% 50.51%
Cash efficiency ratio (9) 49.42% 50.67% 49.85%
-------------------------------- ------------------------------------
(In thousands, except per share data) Three Months Ended
-----------------------
3/31/2004 12/31/2003
-----------------------
Net interest income $217,609 $213,288
Net income $90,327 $91,562
Shares outstanding (end of period) 163,046 162,188
Weighted average shares outstanding:
Basic 162,965 162,149
Diluted 166,657 165,685
Earnings per share:
Basic $0.55 $0.56
Diluted $0.54 $0.55
Shareholders' equity (end of period) $2,651,911 $2,520,519
Book value per share (end of period) $16.26 $15.54
Tangible book value per share (end of period) $9.14 $8.37
RATIOS & OTHER INFORMATION:
Net interest margin (net interest income as a
% of average earning assets) (1) 3.68% 3.65%
Net interest spread (yield on earning assets
minus yield on interest-bearing liabilities) (1) 3.46% 3.42%
Return on average assets 1.37% 1.39%
Return on average equity 14.13% 14.72%
At period end:
---------------------------------------------
Tier 1 leverage capital ratio 6.84% 6.65%
Tangible equity/tangible assets 5.79% 5.37%
Total risk based capital ratio 11.47% 11.29%
Non-performing loans $67,854 $59,762
Total non-performing assets $70,554 $63,103
Non-performing loans as a % of total loans 0.41% 0.37%
Non-performing assets as a % of total assets 0.26% 0.24%
Full service banking offices 358 359
FINANCIAL INFORMATION AND RATIOS EXCLUDING CERTAIN ITEMS (Non-GAAP
Financial Information):
Noninterest income as a percent of total
income (2) 28.00% 27.71%
Merger and consolidation costs on a net of
tax basis (3) $1,049 $855
Per diluted share: $0.01 $0.01
Deleveraging, net of tax basis (4) - -
Per diluted share: - -
Noninterest expense (5) $158,105 $154,360
Return on average assets (6) 1.39% 1.41%
Cash return on average tangible assets (6)
(7) 1.47% 1.49%
Return on average equity (6) 14.29% 14.86%
Cash return on average tangible equity (6) (7) 26.44% 27.86%
Efficiency ratio (8) 52.31% 52.32%
Cash efficiency ratio (9) 51.68% 51.53%
----------------------------------------------------------------------
(1) Adjusted to fully taxable equivalent basis.
(2) Excludes securities gains/(losses).
(3) Merger and consolidation costs consist of merger charges, certain
asset write-downs and branch closing costs.
(4) Deleveraging losses consist of losses on securities sales and
prepayment penalties on borrowings incurred in connection with a
balance sheet restructuring in October 2004.
(5) Excludes pre-tax merger and consolidation costs and prepayment
penalties on borrowings.
(6) Excludes merger and consolidation costs and deleveraging losses,
net of related tax benefits.
(7) Cash ratios reflect an adjustment to add back the amortization of
intangible assets, net of related tax benefits.
(8) Excludes securities gains/(losses), prepayment penalties on
borrowings, and merger and consolidation costs.
(9) Excludes securities gains/(losses), prepayment penalties on
borrowings, merger and consolidation costs, and amortization of
intangible assets.
Ratios are annualized where appropriate.
Banknorth Group, Inc. and Subsidiaries
Reconciliation Table - Non-GAAP Financial Information (Unaudited)
----------------------------------------------------------------------
(In thousands, except per share data)
Three Months Ended
-------------------------------------------------
12/31/ 9/30/ 6/30/ 3/31/ 12/31/
2004 2004 2004 2004 2003
-------------------------------------------------
Net income (GAAP) $20,698 $97,771 $95,847 $90,327 $91,562
Add back merger and
consolidation costs and
deleveraging losses, net of
tax
Merger related 32,381 4,342 2,687 1,354 862
Branch Closings - - - - (7)
Revised auto lease
residual charge (65) - - (305) -
Deleveraging 51,560
--------- --------- --------- --------- ---------
Excluding merger and
consolidation costs
and deleveraging
losses 104,574 102,113 98,534 91,376 92,417
Add back
amortization of
intangibles, net of
tax 1,469 1,547 1,354 1,238 1,511
--------- --------- --------- --------- ---------
Cash basis,
excluding merger
and consolidation
costs and
deleveraging losses $106,043 $103,660 $99,888 $92,614 $93,928
========= ========= ========= ========= =========
Basic earnings per
share (GAAP) $0.12 $0.56 $0.57 $0.55 $0.56
Effects of merger and
consolidation costs,
net of tax 0.18 0.03 0.01 0.01 0.01
Effects of
deleveraging
losses, net of tax 0.29 - - - -
--------- --------- --------- --------- ---------
Excluding merger and
consolidation costs
and deleveraging
losses 0.59 0.59 0.58 0.56 0.57
Effects of
amortization of
intangibles, net of
tax 0.01 0.01 0.01 0.01 0.01
--------- --------- --------- --------- ---------
Cash basis, excluding
merger and
consolidation costs
and deleveraging
losses $0.60 $0.60 $0.59 $0.57 $0.58
========= ========= ========= ========= =========
Diluted earnings per
share (GAAP) $0.12 $0.55 $0.55 $0.54 $0.55
Effects of merger and
consolidation costs,
net of tax 0.17 0.03 0.02 0.01 0.01
Effects of
deleveraging
losses, net of tax 0.29 - - - -
--------- --------- --------- --------- ---------
Excluding merger and
consolidation costs
and deleveraging
losses 0.58 0.58 0.57 0.55 0.56
Effects of
amortization of
intangibles, net of
tax 0.01 0.01 0.01 0.01 0.01
--------- --------- --------- --------- ---------
Cash basis, excluding
merger and
consolidation costs
and deleveraging
losses $0.59 $0.59 $0.58 $0.56 $0.57
========= ========= ========= ========= =========
Return on average
assets (GAAP) 0.29% 1.33% 1.36% 1.37% 1.39%
Effects of merger and
consolidation costs,
net of tax 0.45% 0.06% 0.04% 0.02% 0.02%
Effects of
deleveraging
losses, net of tax 0.72% 0.00% 0.00% 0.00% 0.00%
--------- --------- --------- --------- ---------
Excluding merger and
consolidation costs
and deleveraging
losses 1.46% 1.39% 1.40% 1.39% 1.41%
Effects of
amortization of
intangibles, net of
tax 0.07% 0.10% 0.09% 0.08% 0.08%
--------- --------- --------- --------- ---------
Cash basis, excluding
merger and
consolidation costs
and deleveraging
losses 1.53% 1.49% 1.49% 1.47% 1.49%
========= ========= ========= ========= =========
Return on average
equity (GAAP) 2.66% 13.24% 13.54% 14.13% 14.72%
Effects of merger and
consolidation costs,
net of tax 4.15% 0.58% 0.38% 0.16% 0.14%
Effects of
deleveraging
losses, net of tax 6.62% 0.00% 0.00% 0.00% 0.00%
--------- --------- --------- --------- ---------
Excluding merger and
consolidation costs
and deleveraging
losses 13.43% 13.82% 13.92% 14.29% 14.86%
Effects of
amortization of
intangibles, net of
tax 11.37% 13.38% 12.75% 12.15% 13.00%
--------- --------- --------- --------- ---------
Cash basis, excluding
merger and
consolidation costs
and deleveraging
losses 24.80% 27.20% 26.67% 26.44% 27.86%
========= ========= ========= ========= =========
Efficiency ratio 84.43% 52.60% 51.27% 52.23% 52.29%
Effects of
securities gains
(losses) -22.89% 0.50% 0.54% 0.61% 0.47%
Effects of merger and
consolidation costs
and prepayment
penalties -11.44% -1.71% -1.30% -0.53% -0.44%
--------- --------- --------- --------- ---------
Excluding securities
gains (losses)
and merger and
consolidation
costs and
prepayment
penalties 50.10% 51.39% 50.51% 52.31% 52.32%
Effects of
amortization of
intangibles -0.68% -0.72% -0.66% -0.63% -0.79%
--------- --------- --------- --------- ---------
Cash basis,
excluding
securities gains
(losses),
prepayment
penalties and
merger and
consolidation costs 49.42% 50.67% 49.85% 51.68% 51.53%
========= ========= ========= ========= =========
Non Interest Income $70,591 $91,513 $89,476 $88,217 $84,435
Net gains (losses)
on sales of
securities (17,761) 3,124 3,355 3,581 2,682
--------- --------- --------- --------- ---------
Excluding securities
gains (losses) $88,352 $88,389 $86,121 $84,636 $81,753
========= ========= ========= ========= =========
Non Interest Expense $267,359 $174,198 $163,826 $159,719 $155,676
Merger and
consolidation costs 38,286 5,603 4,135 1,614 1,316
Prepayment penalties
on borrowings 61,546 - - - -
--------- --------- --------- --------- ---------
Excluding merger and
consolidation costs
and prepayment
penalties $167,527 $168,595 $159,691 $158,105 $154,360
========= ========= ========= ========= =========
Banknorth Group, Inc. and Subsidiaries
Reconciliation Table - Non-GAAP Financial Information
(Unaudited)
----------------------------------------------------------------------
(In thousands, except per share data) Year Ended
-----------------------
12/31/2004 12/31/2003
-----------------------
Net income (GAAP) $304,643 $350,759
Add back merger and consolidation costs
and deleveraging losses, net of tax
Merger related 40,765 5,709
Branch closings - (34)
Revised auto lease residual charge (370) (400)
Deleveraging 51,560 -
----------- -----------
Excluding merger and consolidation costs and
deleveraging losses 396,598 356,034
Add back amortization of intangibles, net of
tax 5,608 5,815
----------- -----------
Cash basis, excluding merger and consolidation
costs and deleveraging losses $402,206 $361,849
=========== ===========
Basic earnings per share (GAAP) $1.78 $2.18
Effects of merger and consolidation costs, net
of tax 0.24 0.03
Effects of deleveraging losses, net of tax 0.30 -
----------- -----------
Excluding merger and consolidation costs and
deleveraging losses 2.32 2.21
Effects of amortization of intangibles, net of
tax 0.04 0.04
----------- -----------
Cash basis, excluding merger and consolidation
costs and deleveraging losses $2.36 $2.25
=========== ===========
Diluted earnings per share (GAAP) $1.75 $2.15
Effects of merger and consolidation costs, net
of tax 0.23 0.03
Effects of deleveraging losses, net of tax 0.30 -
----------- -----------
Excluding merger and consolidation costs and
deleveraging losses 2.28 2.18
Effects of amortization of intangibles, net of
tax 0.03 0.03
----------- -----------
Cash basis, excluding merger and consolidation
costs and deleveraging losses $2.31 $2.21
=========== ===========
Return on average assets (GAAP) 1.08% 1.37%
Effects of merger and consolidation costs, net
of tax 0.14% 0.02%
Effects of deleveraging losses, net of tax 0.19% 0.00%
----------- -----------
Excluding merger and consolidation costs and
deleveraging losses 1.41% 1.39%
Effects of amortization of intangibles, net of
tax 0.07% 0.06%
----------- -----------
Cash basis, excluding merger and consolidation
costs and deleveraging losses 1.48% 1.45%
=========== ===========
Return on average equity (GAAP) 10.63% 14.51%
Effects of merger and consolidation costs, net
of tax 1.41% 0.20%
Effects of deleveraging losses, net of tax 1.80% 0.00%
----------- -----------
Excluding merger and consolidation costs and
deleveraging losses 13.84% 14.71%
Effects of amortization of intangibles, net of
tax 12.15% 11.89%
----------- -----------
Cash basis, excluding merger and consolidation
costs and deleveraging losses 25.99% 26.60%
=========== ===========
Efficiency ratio 60.09% 53.09%
Effects of securities gains (losses) -5.16% -0.69%
Effects of merger and consolidation costs and
prepayment penalties -3.88% -0.69%
----------- -----------
Excluding securities gains (losses),
prepayment penalties on borrowings, and
merger and consolidation costs 51.05% 51.71%
Effects of amortization of intangibles -0.67% -0.77%
----------- -----------
Cash basis, excluding securities gains
(losses), prepayment penalties on borrowings,
and merger and consolidation costs 50.38% 50.94%
=========== ===========
Non Interest Income $339,799 $367,159
Net gains (losses) on sales of securities (7,701) 42,460
----------- -----------
Excluding securities gains (losses) $347,500 $324,699
=========== ===========
Non Interest Expense $765,101 $641,270
Merger and consolidation costs 49,635 8,104
Prepayment penalties on borrowings 61,546 30,490
----------- -----------
Excluding merger and consolidation costs and
prepayment penalties $653,920 $602,676
=========== ===========
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