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For Immediate Release
January 23, 2001

Contact:
E-mail: beryl@wolfenews.com

Beryl Wolfe
(207) 775-5115

Web Site: http://www.tdbank.com/

Seventh Consecutive Record Earnings Year at Banknorth

Portland, Maine, January 23, 2001 - Banknorth Group, Inc. (NASDAQ: BKNG) today announced its seventh consecutive record earnings year on an operating basis. Operating earnings, exclusive of merger related and other special charges, were $234.7 million, or $1.62 per diluted share, for the year ended December 31, 2000, up 9 percent on a per diluted share basis from 1999. Net income for the year ended December 31, 2000 was $191.7 million, or $1.32 per diluted share, down 3 percent from 1999 mostly due to costs related to the acquisition of Banknorth in May 2000. Following the acquisition of Banknorth by the former Peoples Heritage Financial Group, the Company took on the Banknorth Group name.

For the quarter ended December 31, 2000, operating income was a record $62.3 million, or 43 cents per diluted share, up 10 percent on an operating basis from $56.4 million, or 39 cents per diluted share, for the quarter ended December 31, 1999. For the quarter ended December 31, 2000, net income was also a record at $62.4 million, or 43 cents per diluted share, up 8 percent per diluted share from $58.8 million, or 40 cents per diluted share, over the same quarter a year ago.

"To complete the largest acquisition in our history in 2000 and still achieve solid loan and fee income expansion was very gratifying," said William J. Ryan, Chairman, President and Chief Executive Officer.

Loans at December 31, 2000 were up 10 percent over December 31, 1999, led by a 20 percent increase in commercial business loans. Consumer loans increased by 12 percent and commercial real estate loans by 10 percent. Mortgage loans declined by 1 percent from December 31, 1999 to December 31, 2000 as a result of new loans being sold into the secondary market.

Noninterest income, exclusive of securities restructuring, increased by 18 percent from December 31, 1999 to December 31, 2000, reflecting substantial fee income growth. Insurance commissions, bolstered by purchase acquisitions of agencies in Massachusetts and Connecticut, increased by 27 percent, merchant and card product income and customer service fees were both up 17 percent, and investment advisory services fees increased by 15 percent.

Operating noninterest expenses for the year ended December 31, 2000 decreased slightly from the previous year.

Operating return on average equity for the year ended December 31, 2000 was 19.20%, up from 18.16% for the previous year. Operating return on average assets for the year ended December 31, 2000 was 1.28%, up from 1.24% for the previous year. The Company's efficiency ratio in 2000 improved to 54.7% from 56.5% in 1999.

The Company's net interest margin for the year ended December 31, 2000 was 3.65%, down from 3.86% for the year ended December 31, 1999. However, the Company's net interest margin for the quarter ended December 31, 2000 was 3.70%, up 13 basis points from the previous quarter and the first quarterly increase in over two years.

"We are pleased to see an increase in the net interest margin and believe that recent interest rate developments will have a positive impact on our margin in 2001 and beyond," said Mr. Ryan.

Nonperforming loans as a percentage of total loans were at 0.57% at December 31, 2000, an increase of 11 basis points from the previous quarter ended September 30, 2000 but down from 0.59% at December 31, 1999. Nonperforming assets as a percentage of total assets of 0.37% at December 31, 2000 increased by 6 basis points from the previous quarter ended September 30, 2000 but were level with December 31, 1999.

"Asset quality remains strong," said Mr. Ryan. "Despite some traditional pressure related to the commencement of the winter season and a modest upturn in nonperforming loans, asset quality remains an essentially positive story at Banknorth."

During the quarter ended December 31, 2000, the Company repurchased approximately 4.6 million shares of its common stock at a weighted average price of $18.19 per share.

Banknorth Group, Inc., headquartered in Portland, Maine, is one of the country's 50 largest commercial banking companies with $18.2 billion in assets. The Company operates banking subsidiaries in Maine, Peoples Heritage Bank, NA, in New Hampshire, Bank of New Hampshire, NA, in Massachusetts, First Massachusetts Bank, NA, in Vermont, The Howard Bank, NA, Franklin Lamoille Bank, NA and First Vermont Bank, NA, and New York, Evergreen Bank, NA. In north central Connecticut, the Company's banking presence is GBT, a division of First Massachusetts Bank, NA.

The Company also operates a variety of insurance agencies in New England as subsidiaries of Morse, Payson & Noyes, Insurance, its lead agency, a money management firm, The Stratevest Group, NA, an investment subsidiary, Heritage Investment Planning Services, and a leasing company, Banknorth Leasing.

Other subsidiaries and divisions provide services in mortgage banking, asset based lending, private banking, merchant services and other financial services.

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Note: This news release may contain forward looking information for Banknorth Group, Inc. Actual results may vary materially from any forward looking statements. Factors which could result in material variations from forward looking statements include, but are not limited to: changes in interest rates which could affect net interest margins and net interest income; delays in cost savings measures or a failure to realize anticipated cost savings; competitive factors which could affect not interest income, costs of deposits and interest income: and general economic conditions which could affect the volume of loan originations, the amount of loan losses and levels of noninterest income.



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