Banknorth reports second quarter 1996 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 16, 1996--Banknorth Group, Inc. (NASDAQ-BKNG) today announced earnings results for the second quarter of 1996. Net income for the three months ended June June: see month. 30, 1996, was $6.8 million, or $.87 per share, compared to $5.5 million, or $.80 per share, for the second quarter of 1995, an increase of $1.3 million, or 24.1%. 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. returns on average assets and 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 quarter ended June 30, 1996 were 1.12% and 14.25%, respectively. Net income for the six months ended June 30, 1996, was $11.5 million, or $1.52 per share, compared to $10.7 million, or $1.57 per share, for the first six months of 1995. The Company had previously reported non-recurring expenses in the first quarter of 1996 totaling $1.4 million, or $.19 per share. 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. On February February: see month. 16, 1996, The Company completed its acquisition of 13 branches in central and western Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. that were divested in
conjunction conjunction, in astronomyconjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the Fleet/Shawmut transaction. Banknorth, as a result of the branch acquisition, formed the First Massachusetts Bank, N.A. ("FMB FMB abbr. Federal Maritime Board FMB (US) n abbr (= Federal Maritime Board) → Dachausschuss der Handelsmarine ") which is now the largest bank headquartered in Worcester Worcester, city, England Worcester (w  s`tər), city (1991 pop. 75,466) and district, Worcestershire, W central England, on the Severn River. . At June 30, 1996, FMB had total assets of $605 million. The
acquisition was accounted for as a purchase transaction and,
accordingly, periods before the acquisition date were not restated.Net interest income, $27.4 million in the second quarter of 1996, increased $6.5 million or 31.2%, over the second quarter of 1995. Other income, $6.5 million for the three months ended June 30, 1996, was up $1.2 million, or 21.9%, over the second quarter of 1995. For the six months ended June 30, 1996, net interest income was $52.0 million, an increase of $10.0 million, or 23.7%, over the first six months of 1995. Other income for the six months ended June 30, 1996, was $12.3 million, an increase of $2.0 million, or 19.4% over the first six months of 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. , at $22.5 million for the three months ended June 30, 1996, were up $5.1 million, or 29.6%, from the level experienced in the second quarter of 1995. FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). deposit insurance and other 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. expenses were down $806 thousand in the second quarter of 1996, from the second quarter of 1995. Total operating expenses for the six months ended June 30, 1996, were $44.7 million, up $9.5 million, or 26.9%, from total operating expenses in the first six months of 1995. "Our net interest margin has continued to be stronger than we anticipated," reported Chadwick. "The marketplace in central and western Massachusetts has begun to settle down since the completion of the Fleet/Shawmut transaction and we are beginning to see some good deposit and loan growth in our new bank there," he said. Total assets as of June 30, 1996, were $2.5 billion, compared to $1.9 billion at June 30, 1995, an increase of $556 million, or 29.2%. Banknorth Group, Inc., is a multi-bank holding company headquartered in Burlington, Vermont Burlington is the largest city in the U.S. state of Vermont and is the shire town of Chittenden County, Vermont. With a population of 38,889, the city is the core of one of the nation's smaller metropolitan areas, and is also the smallest U.S. . 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 seven community banks, investment management company and mortgage company with over 60 locations 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. , Massachusetts and 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). . -0-
Banknorth Group, Inc.
Comparative Financial Results
(In thousands, except share and per share data)
Page 1 of 6
Income Statements
For the three months ended June 30,
1996 1995 Change %
Interest income $47,454 $37,967 $9,487 25.0% Interest expense 20,058 17,079 2,979 17.4% Net interest income 27,396 20,888 6,508 31.2%
Provision for
loan losses 1,300 1,125 175 15.6%
26,096 19,763 6,333 32.0%
Trust Income 2,005 1,890 115 6.1% Service charges on deposit accounts 1,792 1,321 471 35.7% Mortgage servicing fees 670 655 15 2.3% Credit card income 728 665 63 9.5% Net securities transactions --- 46 (46) -100.0% Net loan transactions 358 94 264 280.9% Other income 903 625 278 44.5% Total other income 6,456 5,296 1,160 21.9% Salaries 9,053 6,814 2,239 32.9% Employee benefits 2,146 1,656 490 29.6% Net occupancy 1,767 1,325 442 33.4% Equipment 1,701 1,368 333 24.3% Data processing 1,209 1,076 133 12.4% FDIC deposit insurance and other regulatory 99 905 (806) -89.1% OREO and repossession 78 (9) 87 966.7% Legal and professional 833 624 209 33.5% Printing and supplies 572 452 120 26.5% Advertising and marketing 657 593 64 10.8% Amortization of goodwill 1,319 159 1,160 729.6% Other expense 3,076 2,409 667 27.7% Total other expenses 22,510 17,372 5,138 29.6% Income before income taxes 10,042 7,687 2,355 30.6% Income taxes 3,248 2,213 1,035 46.8% NET INCOME $6,794 $5,474 $1,320 24.1% Per Share Information Wtd avg number of shares outstanding 7,826,648 6,804,425 1,022,223 15.0% Net income $0.87 $0.80 $0.07 8.8% Shares outstanding 7,826,648 6,804,425 1,022,223 15.0% Book value $24.84 $21.65 $3.19 14.7% Tangible book value (a) 19.89 20.31 (0.42) -2.1% Dividends declared 1,957 1,565 392 25.0% Dividends declared per share 0.25 0.23 0.02 8.7% Dividend payout ratio 28.74% 28.75% -0.0% -0.0% Closing price at period end $34.25 $26.88 $7.37 27.4% Price / Earnings (LTM) 10.6 8.8 1.8 20.5% Price / Tangible book value 172% 132% 40% 30.1% Ratios Return on average total assets 1.12% 1.18% -0.06% -5.1% Return on average shareholders' equity 14.25% 15.27% -1.02% -6.7% Net interest income, f.t.e. basis $27,560 $21,062 $6,498 30.9% Net interest margin 4.88% 4.75% 0.13% 2.7% Efficiency ratio (b) 62.07% 66.02% -3.95% -6.0% Expense ratio (b) 2.59% 2.74% -0.15% -5.5% (a) Represents shareholders' equity less goodwill divided by shares outstanding (b) These ratios exclude amortization of goodwill, OREO expenses, gain/loss on sale of securities, and any other significant non-recurring income or expense items. -0-
Banknorth Group, Inc.
Comparative Financial Results
(In thousands, except share and per share data)
Page 2 of 6
Income Statements
For the six months ended June 30,
1996 1995 Change %
Interest income $90,587 $74,767 $15,820 21.2%
Interest expense 38,575 32,709 5,866 17.9%
Net interest income 52,012 42,058 9,954 23.7%
Provision for loan losses 2,600 2,125 475 22.4%
49,412 39,933 9,479 23.7%
Trust Income 4,001 3,712 289 7.8% Service charges on deposit accounts 3,132 2,557 575 22.5% Mortgage servicing fees 1,349 1,373 (24) -1.7% Credit card income 1,327 1,263 64 5.1% Net securities transactions 3 53 (50) -94.3% Net loan transactions 959 186 773 415.6% Other income 1,571 1,194 377 31.6% Total other income 12,342 10,338 2,004 19.4% Salaries 17,428 13,551 3,877 28.6% Employee benefits 4,317 3,443 874 25.4% Net occupancy 3,553 2,756 797 28.9% Equipment 3,134 2,719 415 15.3% Data processing 2,317 2,262 55 2.4% FDIC deposit insurance and other regulatory 198 1,819 (1,621) -89.1% OREO and repossession 108 268 (160) -59.7% Legal and professional 1,690 1,418 272 19.2% Printing and supplies 1,998 901 1,097 121.8% Advertising and marketing 1,754 1,005 749 74.5% Amortization of goodwill 2,050 318 1,732 544.7% Other expense 6,116 4,740 1,376 29.0% Total other expenses 44,663 35,200 9,463 26.9% Income before income taxes 17,091 15,071 2,020 13.4% Income taxes 5,547 4,355 1,192 27.4% NET INCOME $11,544 $10,716 828 7.7% Per Share Information Wtd avg number of shares outstanding 7,579,517 6,804,425 775,092 11.4% Net income $1.52 $1.57 ($0.05) -3.2% Shares outstanding 7,826,648 6,804,425 1,022,223 15.0% Book value $24.84 $21.65 $3.19 14.7% Tangible book value (a) 19.89 20.31 (0.42) -2.1% Dividends declared 3,914 3,130 784 25.1% Dividends declared per share 0.50 0.46 0.04 8.7% Dividend payout ratio 32.89% 29.30% 3.6% 12.3% Closing price at period end $34.25 $26.88 $7.37 27.4% Price / Earnings (LTM) 10.6 8.8 1.8 20.5% Price / Tangible book value 172% 132% 40% 30.1% Ratios Return on average total assets 1.01% 1.16% -0.15% -12.9% Return on average shareholders' equity 12.64% 15.36% -2.72% -17.7% Net interest income, f.t.e. basis $52,356 $42,386 $9,970 23.5% Net interest margin 4.90% 4.84% 0.06% 1.2% Efficiency ratio (b) 62.38% 66.00% -3.62% -5.5% Expense ratio (b) 2.62% 2.79% -0.17% -6.1% (a) Represents shareholders' equity less goodwill divided by shares outstanding (b) These ratios exclude amortization of goodwill, OREO expenses, gain/loss on sale of securities and any other significant non-recurring income or expense items. -0-
Banknorth Group, Inc.
Comparative Financial Results
(In thousands, except share and per share data)
Page 3 of 6
Balance Sheets, Period End
Balances as of
06-30-96 06-30-95 Change %
Loans $1,770,339 $1,339,411 $430,928 32.2%
Loans held for sale 14,237 14,484 (247) -1.7%
Securities available
for sale, at
fair value 460,901 125,917 334,984 266.0%
Investment securities 43,373 299,900 (256,527) -85.5%
Money market assets 50 1,450 (1,400) -96.6%
Total earning assets 2,288,900 1,781,162 507,738 28.5%
Allowance for
loan losses (24,669) (20,907) (3,762) -18.0%
OREO and
repossessed assets 1,301 825 476 57.7%
Premises and equipment 29,427 24,607 4,820 19.6%
Goodwill 38,744 9,071 29,673 327.1%
Capitalized mortgage
servicing rights 3,691 3,304 387 11.7%
Other assets 120,646 104,198 16,448 15.8%
Total assets $2,458,040 $1,902,260 $555,780 29.2%
Deposits $2,040,231 $1,451,015 $589,216 40.6%
Short-term borrowings 155,977 188,002 (32,025) -17.0%
Long - term debt 46,791 99,071 (52,280) -52.8%
Other liabilities 20,611 16,890 3,721 22.0%
Shareholders' equity 194,430 147,282 47,148 32.0%
Total liabilities &
shareholders'
equity $2,458,040 $1,902,260 $555,780 29.2%
Changes to Shareholders' Equity
For the three months ended June 30,
1996 1995 Change %
Balance at beginning of period $191,721 $141,359 50,362 35.6% Issuance of common stock --- --- --- --- Net income 6,794 5,474 1,320 24.1% Dividends declared (1,957) (1,565) (392) -25.0% Amortization of employee restricted stock 57 72 (15) -20.8% Exercise of employee stock options (18) (17) (1) -5.9% Net changes in market valuation on securities AFS, net of tax (2,167) 1,723 (3,890) -225.8% Net changes in market valuation on securities AF transferred to the investment portfolio, net --- 236 (236) -100.0% Balance at end of period $194,430 $147,282 $47,148 32.0% Average Balance Sheets
Loans $1,746,552 $1,324,586 $421,966 31.9%
Loans held for sale 15,668 10,197 5,471 53.7%
Securities available
for sale, at amortized
cost 446,227 129,333 316,894 245.0%
Investment securities 45,703 310,093 (264,390) -85.3%
Money market assets 18,522 3,035 15,487 510.3%
Total earning
assets 2,272,672 1,777,244 495,428 27.9%
Allowance for
loan losses (24,618) (21,385) (3,233) -15.1%
OREO and repossessed
assets 679 908 (229) -25.2%
Goodwill 39,583 9,164 30,419 331.9%
Capitalized mortgage
servicing rights 3,660 3,280 380 11.6%
Other assets, including
SFAS 115 market
valuation 137,273 96,666 40,607 42.0%
Total assets $2,429,249 $1,865,877 $563,372 30.2%
Deposits $2,030,037 1,420,538 $609,499 42.9% Short-term borrowings 138,632 183,021 (44,389) -24.3% Long-term debt 47,311 101,506 (54,195) -53.4% Other liabilities 21,574 17,029 4,545 26.7% Shareholders' equity 191,695 143,783 47,912 33.3% Total liabilities & shareholders' equity $2,429,249 $1,865,877 $563,372 30.2% -0-
Banknorth Group, Inc.
Comparative Financial Results
(In thousands, except share and per share data)
Page 4 of 6
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 19,174 14,025 5,149 36.7%
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 1,779,642 1,761,426 18,216 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 9,391 (838) -8.9%
Capitalized mortgage
servicing rights 3,363 3,208 155 4.8%
Other assets 114,625 95,595 19,030 19.9%
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 six months ended June 30,
1996 1995 Change %
Balance at beginning of period $159,936 $135,564 $24,372 18.0% Issuance of common stock 32,216 --- 32,216 100.0% Net income 11,544 10,716 828 7.7% Dividends declared (3,914) (3,130) (784) -25.1% Amortization of employee restricted stock 85 119 (34) -28.6% Exercise of employee stock options (88) (36) (52) -144.4% Net changes in market valuation on securities AFS, net of tax (5,349) 3,593 (8,942) -248.9% Net changes in market valuation on securities AFS transferred to the investment portfolio, net --- 456 (456) -100.0% Balance at end of period $194,430 $147,282 $47,148 32.0% Average Balance Sheets Loans $1,642,670 $1,310,290 $332,380 25.4% Loans held for sale 16,432 10,000 6,432 64.3% Securities available for sale, at amortized cost 417,871 127,994 289,877 226.5% Investment securities 47,037 313,099 (266,062) -85.0% Money market assets 23,369 6,224 17,145 275.5% Total earning assets 2,147,379 1,767,607 379,772 21.5% Allowance for loan losses (23,860) (21,580) (2,280) -10.6% OREO and repossessed assets 759 1,001 (242) -24.2% Goodwill 31,547 9,249 22,298 241.1% Capitalized mortgage servicing rights 3,587 3,259 328 10.1% Other assets, including SFAS 115 market valuation 135,071 96,496 38,575 40.0% Total assets $2,294,483 $1,856,032 $438,451 23.6% Deposits $1,913,164 $1,417,638 $495,526 35.0% Short-term borrowings 126,567 175,488 (48,921) -27.9% Long-term debt 49,861 105,040 (55,179) -52.5% Other liabilities 21,270 17,219 4,051 23.5% Shareholders' equity 183,621 140,647 42,974 30.6% Total liabilities & shareholders' equity $2,294,483 $1,856,032 $438,451 23.6% -0-
Banknorth Group, Inc.
Comparative Financial Results
(In thousands, except share and per share data)
Page 5 of 6
Credit Quality Information
Balances as of
6-30-96 6-30-95 Change %
Non-accrual loans $19,512 $17,654 $1,858 10.5%
Loans past-due
90 days and accruing 1,518 915 603 65.9%
Restructured loans 917 456 461 101.1%
Total non-performing
loans (NPLs) 21,947 19,025 2,922 15.4%
Total foreclosed (OREO)
and repo'd assets (F/RA) 1,301 825 476 57.7%
Total non-performing
assets (NPAs) $23,248 $19,850 $3,398 17.1%
NPAs as a % of (loans+F/RA), p.e. 1.31% 1.48% -0.17% -11.4% NPAs as a % of total assets, p.e. 0.95% 1.04% -0.09% -8.7% Allow for loan losses as % of NPLs, p.e. 112.40% 109.89% 2.51% 2.3% Allow for loan losses as % of total loans, p.e. 1.39% 1.56% -0.17% -10.9% -0-
For the three months ended June 30,
1996 1995 Change %
Loans charged off $1,873 $3,068 ($1,195) -39.0%
Loan recoveries 1,059 1,297 (238) -18.4%
Loans charged off,
net of recoveries $814 $1,771 ($957) -54.0%
As a % of average loans 0.19% 0.53% -0.34% -64.2%
Provision for loan losses $1,300 $1,125 $175 15.6% As a % of average loans 0.30% 0.34% -0.04% -11.8%
Capital Strength
Balances as of
6-30-96 6-30-95 Change %
Total risk-adjusted
assets $1,765,973 $1,306,273 $459,700 35.2%
As a % of total
assets, net of
fair value adjust
and goodwill 72.84% 68.84% 4.00% 5.8%
Total shareholders'
equity $194,430 $147,282 $47,148 32.0%
Fair value adjustment 5,320 4,446 874 19.7%
Goodwill (38,744) (9,071) (29,673) -327.1%
Total Tier 1 capital 161,006 142,657 18,349 12.9%
Maximum allowance
for loan losses 22,107 16,385 5,722 34.9%
Total capital $183,113 $159,042 $24,071 15.1%
Total capital to total risk-adjusted assets 10.37% 12.18% -1.81% -14.9% Tier I capital to total risk-adjusted assets 9.12% 10.92% -1.80% -16.5% Leverage ratio 6.72% 7.66% -0.94% -12.3% Shareholders' equity to total assets, p.e. 7.91% 7.74% 0.17% 2.2% Tangible shareholders' equity to tangible assets 6.44% 7.30% -0.87% -11.9% -0-
Banknorth Group, Inc.
Comparative Financial Results
(In thousands, except share and per share data)
Page 6 of 6
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 six months ended June 30,
1996 1995 Change %
Loans charged off $3,981 $5,142 ($1,161) -22.6%
Loan recoveries 2,305 2,487 (182) -7.3%
Loans charged off,
net of recoveries $1,676 $2,655 ($979) -36.9%
As a % of average loans 0.20% 0.41% -0.21% -51.2%
Provision for loan losses $2,600 $2,125 $475 22.4% As a % of average loans 0.32% 0.32% 0.00% 0.0%
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 total
assets, net of fair
value adjust
and goodwill 70.91% 67.76% 3.15% 4.6%
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% 0.62% 5.8% 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% CONTACT: 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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