Exhibit 99.1
For Immediate Release
For Further Information, Contact:
Brian Arsenault, SVP, Investor Relations
207 761-8517
Banknorth Earnings Up 17% in 2003; 19% in Fourth Quarter
(Fourth Quarter Earnings Conference Call at 1:30 p.m. Eastern Time today, January 20, 2004. Dial-in number for USA and Canada is 800 901-5241. International dial-in number is 617 786-2963. Passcode for both numbers is 10986982. Replay number for USA and Canada is 888 286-8010. International replay dial-in number is 617 801-6888. Replay passcode is 83503010. Live webcast and webcast replay available at www.banknorth.com, Investor Relations.)
Portland, Maine, January 20, 2004 – Banknorth Group Inc. (NYSE: BNK) announced today that earnings for 2003 increased 17% over the previous year to $350.8 million from $298.6 million in 2002. For the fourth quarter ended December 31, 2003, Banknorth’s earnings increased 19% to $91.6 million from $77.1 million for the same quarter a year ago. Fourth quarter earnings were $1.3 million higher than earnings for the third quarter of 2003.
Earnings per diluted share for 2003 increased 8% to $2.15 from $1.99 in 2002. Fourth quarter earnings per diluted share of 55 cents increased 6% from 52 cents in the fourth quarter of 2002. Exclusive of merger and consolidation costs, 2003 earnings per diluted share were $2.18 and fourth quarter earnings per diluted share were 56 cents.
“We continue to be a leading banking presence in New England and we will soon be the largest banking company headquartered in the region,” said William J. Ryan, Banknorth Chairman, President and Chief Executive Officer. “We are expanding our loan base while maintaining strong asset quality and managing expenses.
“Soon after year-end, we were excited to learn that Forbes Magazine had named us the ‘Best Managed Bank in America’,” Mr. Ryan continued. “Perhaps most satisfying of all, though, our stock price increased by 44% over the course of 2003.”
2
The Company reported strong loan and deposit growth in 2003:
Total loans and leases at December 31, 2003 were 16% higher than at December 31, 2002 and total deposits were 14% higher. All loan categories increased by double digits, led by consumer loans and leases, up 23% over the previous year-end (9% exclusive of acquisitions) and commercial real estate mortgages, up 15% (12% exclusive of acquisitions). Savings and checking accounts experienced the greatest increases on the deposit side for the year.
Even with strong loan growth, Banknorth improved key asset quality numbers. Total nonperforming loans declined from $65.3 million at December 31, 2002 to $59.8 million at December 31, 2003 while the Company’s total assets grew by $3 billion in the same period. Also for the same timeframe, nonperforming loans as a percentage of total loans declined from 0.46% to 0.37% and nonperforming assets as a percentage of total assets declined from 0.29% to 0.24%. The same measurements of asset quality also improved from the previous quarter ended September 30, 2003.
Noninterest income, principally fee income, increased 34% in 2003 over 2002 while noninterest expenses grew only 11% during this period. For the fourth quarter ended December 31, 2003, noninterest income was flat with the same quarter a year ago, largely due to a reduction in income from securities sales, and noninterest expenses declined 2%.
The Company’s net interest margin continued to reflect the low interest rate environment. The margin was 3.66% for 2003 and 3.65% for the fourth quarter of 2003, as compared to 4.07% for 2002 and 3.86% for the same quarter a year ago. However, the net interest margin was up slightly in the fourth quarter from 3.63% for the third quarter ended September 30, 2003.
In 2003, Banknorth completed the acquisitions of American Savings Bank in Connecticut, which had $2.7 billion in assets, and First & Ocean National Bank in Massachusetts, which had $275 million in assets. During 2003 the Company also announced and has pending the acquisitions of Foxborough Savings Bank and CCBT Financial Companies, Inc., the parent company of Cape Cod Bank & Trust Company, N.A., both in Massachusetts.
Banknorth Group, Inc., headquartered in Portland, Maine, is one of the country’s 35 largest commercial banking companies with $26.5 billion in assets. The Company’s banking subsidiary, Banknorth, N.A., operates banking divisions in Connecticut (Banknorth Connecticut); Maine (Peoples Heritage Bank); Massachusetts (Banknorth Massachusetts); New Hampshire (Bank of New Hampshire); New York (Evergreen Bank); and Vermont (Banknorth Vermont). The Company and Banknorth, N.A. also operate subsidiaries and divisions in insurance, money management, merchant services, mortgage banking, government banking and other financial services and offers investment products in association with PrimeVest Financial Services, Inc. The Company’s website is at www.banknorth.com.
3
Note: This news release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“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 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 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, 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 charges to income, may not produce revenue enhancements 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
| December 31, | December 31, | % | September 30, | % | ||||||||||||||||
| (In thousands) | 2003 | 2002 | Change | 2003 | Change | |||||||||||||||
| Cash and due from banks | $ | 669,686 | $ | 690,250 | -3 | % | $ | 559,056 | 20 | % | ||||||||||
| Federal funds sold and other short-term investments | 4,645 | 79,753 | -94 | % | 31,645 | -85 | % | |||||||||||||
| Securities available for sale | 7,122,992 | 6,731,467 | 6 | % | 6,938,938 | 3 | % | |||||||||||||
| Securities held to maturity | 124,240 | 216,409 | -43 | % | 141,626 | -12 | % | |||||||||||||
| Loans and leases held for sale | 41,696 | 128,622 | -68 | % | 74,696 | -44 | % | |||||||||||||
| Loans and leases: | ||||||||||||||||||||
| Residential real estate mortgages | 2,710,483 | 2,382,197 | 14 | % | 2,702,895 | 0 | % | |||||||||||||
| Commercial real estate mortgages | 5,528,862 | 4,792,049 | 15 | % | 5,310,179 | 4 | % | |||||||||||||
| Commercial business loans and leases | 3,287,094 | 2,968,474 | 11 | % | 3,265,795 | 1 | % | |||||||||||||
| Consumer loans and leases | 4,819,523 | 3,913,288 | 23 | % | 4,646,983 | 4 | % | |||||||||||||
| Total loans and leases | 16,345,962 | 14,056,008 | 16 | % | 15,925,852 | 3 | % | |||||||||||||
| Less: Allowance for loan and lease losses | 232,287 | 208,273 | 12 | % | 229,581 | 1 | % | |||||||||||||
| Loans and leases, net | 16,113,675 | 13,847,735 | 16 | % | 15,696,271 | 3 | % | |||||||||||||
| Premises and equipment | 264,818 | 271,677 | -3 | % | 264,752 | 0 | % | |||||||||||||
| Goodwill | 1,126,639 | 660,684 | 71 | % | 1,094,334 | 3 | % | |||||||||||||
| Identifiable intangible assets | 36,415 | 34,474 | 6 | % | 37,340 | -2 | % | |||||||||||||
| Mortgage servicing rights | 2,783 | 3,598 | -23 | % | 3,802 | -27 | % | |||||||||||||
| Bank owned life insurance | 488,756 | 380,405 | 28 | % | 482,255 | 1 | % | |||||||||||||
| Other assets | 457,390 | 373,867 | 22 | % | 416,222 | 10 | % | |||||||||||||
| $ | 26,453,735 | $ | 23,418,941 | 13 | % | $ | 25,740,937 | 3 | % | |||||||||||
Liabilities & Shareholders’ Equity | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Regular savings | $ | 2,460,522 | $ | 1,940,195 | 27 | % | $ | 2,473,397 | -1 | % | ||||||||||
| Retail money market and NOW accounts | 7,130,534 | 6,091,429 | 17 | % | 6,922,924 | 3 | % | |||||||||||||
| Retail certificates of deposit | 4,733,104 | 4,658,778 | 2 | % | 4,943,292 | -4 | % | |||||||||||||
| Noninterest bearing deposits | 3,577,025 | 2,974,199 | 20 | % | 3,444,084 | 4 | % | |||||||||||||
| Total deposits | 17,901,185 | 15,664,601 | 14 | % | 17,783,697 | 1 | % | |||||||||||||
| Borrowings from the Federal Home Loan Bank | 1,495,385 | 2,482,582 | -40 | % | 1,557,622 | -4 | % | |||||||||||||
| Federal funds purchased and securities sold under repurchase agreements | 3,659,550 | 2,446,515 | 50 | % | 2,740,809 | 34 | % | |||||||||||||
| Subordinated debt and senior notes | 348,293 | 200,000 | 74 | % | 359,172 | -3 | % | |||||||||||||
| Other borrowings | 84,361 | 8,428 | 901 | % | 7,309 | 1054 | % | |||||||||||||
| Company obligated, mandatorily redeemable securities of subsidiary trusts holding solely parent junior subordinated debentures | 295,275 | 295,056 | 0 | % | 295,056 | 0 | % | |||||||||||||
| Other liabilities | 149,167 | 258,274 | -42 | % | 521,692 | -71 | % | |||||||||||||
| Total liabilities | 23,933,216 | 21,355,456 | 12 | % | 23,265,357 | 3 | % | |||||||||||||
| Shareholders’ equity | 2,520,519 | 2,063,485 | 22 | % | 2,475,580 | 2 | % | |||||||||||||
| $ | 26,453,735 | $ | 23,418,941 | 13 | % | $ | 25,740,937 | 3 | % | |||||||||||
Banknorth Group, Inc. and Subsidiaries
| Year Ended December 31, | % | Three Months Ended December 31, | % | |||||||||||||||||||||
| (In thousands, except per share data) | 2003 | 2002 | Change | 2003 | 2002 | Change | ||||||||||||||||||
| Interest and dividend income | $ | 1,192,969 | $ | 1,235,117 | -3 | % | $ | 290,414 | $ | 306,569 | -5 | % | ||||||||||||
| Interest expense | 352,138 | 438,600 | -20 | % | 77,126 | 107,006 | -28 | % | ||||||||||||||||
| Net interest income | 840,831 | 796,517 | 6 | % | 213,288 | 199,563 | 7 | % | ||||||||||||||||
| Provision for loan and lease losses | 42,301 | 44,314 | -5 | % | 10,400 | 10,829 | -4 | % | ||||||||||||||||
| Net interest income after provision for loan and lease losses | 798,530 | 752,203 | 6 | % | 202,888 | 188,734 | 7 | % | ||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||
| Deposit services | 97,323 | 82,139 | 18 | % | 25,881 | 22,427 | 15 | % | ||||||||||||||||
| Insurance brokerage commissions | 45,714 | 44,439 | 3 | % | 11,480 | 12,554 | -9 | % | ||||||||||||||||
| Merchant and electronic banking income, net | 41,778 | 37,643 | 11 | % | 10,542 | 10,376 | 2 | % | ||||||||||||||||
| Trust and investment management services | 31,956 | 32,453 | -2 | % | 8,470 | 7,866 | 8 | % | ||||||||||||||||
| Bank owned life insurance | 22,930 | 20,002 | 15 | % | 5,978 | 5,525 | 8 | % | ||||||||||||||||
| Investment planning services | 15,692 | 11,572 | 36 | % | 4,765 | 3,120 | 53 | % | ||||||||||||||||
| Net gains on sales of securities | 42,460 | 7,282 | NM | 2,682 | 6,705 | NM | ||||||||||||||||||
| Other noninterest income | 69,306 | 38,978 | 78 | % | 14,637 | 15,868 | -8 | % | ||||||||||||||||
| 367,159 | 274,508 | 34 | % | 84,435 | 84,441 | 0 | % | |||||||||||||||||
| Noninterest expense: | ||||||||||||||||||||||||
| Salaries and employee benefits | 326,621 | 311,385 | 5 | % | 81,451 | 80,622 | 1 | % | ||||||||||||||||
| Occupancy and equipment expense | 106,659 | 93,355 | 14 | % | 26,731 | 25,733 | 4 | % | ||||||||||||||||
| Data processing | 40,940 | 40,702 | 1 | % | 9,881 | 10,514 | -6 | % | ||||||||||||||||
| Advertising and marketing | 22,000 | 17,239 | 28 | % | 5,430 | 4,723 | 15 | % | ||||||||||||||||
| Amortization of identifiable intangible assets | 8,946 | 6,492 | 38 | % | 2,324 | 2,070 | 12 | % | ||||||||||||||||
| Merger and consolidation costs (1) | 8,104 | 14,691 | -45 | % | 1,316 | 3,258 | -60 | % | ||||||||||||||||
| Write-off of branch automation project (2) | — | 6,170 | NM | — | 6,170 | NM | ||||||||||||||||||
| Prepayment penalties on borrowings | 30,490 | — | NM | — | — | NM | ||||||||||||||||||
| Other noninterest expense | 97,510 | 89,358 | 9 | % | 28,543 | 25,036 | 14 | % | ||||||||||||||||
| 641,270 | 579,392 | 11 | % | 155,676 | 158,126 | -2 | % | |||||||||||||||||
| Income before income tax expense | 524,419 | 447,319 | 17 | % | 131,647 | 115,049 | 14 | % | ||||||||||||||||
| Income tax expense | 173,660 | 148,681 | 17 | % | 40,085 | 37,911 | 6 | % | ||||||||||||||||
| Net Income | $ | 350,759 | $ | 298,638 | 17 | % | $ | 91,562 | $ | 77,138 | 19 | % | ||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||
| Basic | 160,914 | 148,213 | 9 | % | 162,149 | 148,226 | 9 | % | ||||||||||||||||
| Diluted | 163,520 | 149,829 | 9 | % | 165,685 | 149,389 | 11 | % | ||||||||||||||||
| Earnings per share: | ||||||||||||||||||||||||
| Basic | $ | 2.18 | $ | 2.01 | 8 | % | $ | 0.56 | $ | 0.52 | 8 | % | ||||||||||||
| Diluted | 2.15 | 1.99 | 8 | % | 0.55 | 0.52 | 6 | % | ||||||||||||||||
| (1) | Merger and consolidation charges consist of merger charges, certain asset write-downs, charter consolidation costs and branch closing costs. |
| (2) | Represents previously capitalized costs written off in connection with the abandonment of a project to upgrade all of our teller stations and CSR desktops. |
NM — calculated % change is not meaningful
Banknorth Group, Inc. and Subsidiaries
| Year Ended December 31, | % | Three Months Ended December 31, | % | |||||||||||||||||||||
| (In thousands, except per share data) | 2003 | 2002 | Change | 2003 | 2002 | Change | ||||||||||||||||||
| Net interest income | $ | 840,831 | $ | 796,517 | 6 | % | $ | 213,288 | $ | 199,563 | 7 | % | ||||||||||||
| Net income | $ | 350,759 | $ | 298,638 | 17 | % | $ | 91,562 | $ | 77,138 | 19 | % | ||||||||||||
| Shares outstanding (end of period) | 162,188 | 150,579 | 8 | % | 162,188 | 150,579 | 8 | % | ||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||
| Basic | 160,914 | 148,213 | 9 | % | 162,149 | 148,226 | 9 | % | ||||||||||||||||
| Diluted | 163,520 | 149,829 | 9 | % | 165,685 | 149,389 | 11 | % | ||||||||||||||||
| Earnings per share: | ||||||||||||||||||||||||
| Basic | $ | 2.18 | $ | 2.01 | 8 | % | $ | 0.56 | $ | 0.52 | 8 | % | ||||||||||||
| Diluted | $ | 2.15 | $ | 1.99 | 8 | % | $ | 0.55 | $ | 0.52 | 6 | % | ||||||||||||
| Shareholders’ equity (end of period) | $ | 2,520,519 | $ | 2,063,485 | 22 | % | $ | 2,520,519 | $ | 2,063,485 | 22 | % | ||||||||||||
| Book value per share (end of period) | $ | 15.54 | $ | 13.70 | 13 | % | $ | 15.54 | $ | 13.70 | 13 | % | ||||||||||||
| Tangible book value per share (end of period) | $ | 8.37 | $ | 9.09 | -8 | % | $ | 8.37 | $ | 9.09 | -8 | % | ||||||||||||
| Nominal | Nominal | |||||||||||||||||||||||
| Inc/(Dec) | Inc/(Dec) | |||||||||||||||||||||||
| RATIOS & OTHER INFORMATION: | ||||||||||||||||||||||||
| Net interest margin (net interest income as a % of average earning assets) (1) | 3.66 | % | 4.07 | % | -0.41 | % | 3.65 | % | 3.86 | % | -0.21 | % | ||||||||||||
| Net interest spread (yield on earning assets minus yield on interest-bearing liabilities) (1) | 3.41 | % | 3.69 | % | -0.28 | % | 3.42 | % | 3.50 | % | -0.08 | % | ||||||||||||
| Return on average assets | 1.37 | % | 1.39 | % | -0.02 | % | 1.39 | % | 1.35 | % | 0.04 | % | ||||||||||||
| Return on average equity | 14.51 | % | 16.25 | % | -1.74 | % | 14.72 | % | 15.75 | % | -1.03 | % | ||||||||||||
At period end: | ||||||||||||||||||||||||
| Tier 1 leverage capital ratio | 6.65 | % | 7.13 | % | -0.48 | % | 6.65 | % | 7.13 | % | -0.48 | % | ||||||||||||
| Tangible equity/tangible assets | 5.37 | % | 6.02 | % | -0.65 | % | 5.37 | % | 6.02 | % | -0.65 | % | ||||||||||||
| Total risk based capital ratio | 11.28 | % | 12.15 | % | -0.87 | % | 11.28 | % | 12.15 | % | -0.87 | % | ||||||||||||
| Non-performing loans | $ | 59,762 | $ | 65,317 | -9 | % | $ | 59,762 | $ | 65,317 | -9 | % | ||||||||||||
| Total non-performing assets | $ | 63,103 | $ | 68,952 | -8 | % | $ | 63,103 | $ | 68,953 | -8 | % | ||||||||||||
| Non-performing loans as a % of total loans | 0.37 | % | 0.46 | % | -0.09 | % | 0.37 | % | 0.46 | % | -0.09 | % | ||||||||||||
| Non-performing assets as a % of total assets | 0.24 | % | 0.29 | % | -0.05 | % | 0.24 | % | 0.29 | % | -0.05 | % | ||||||||||||
| Full service banking offices | 359 | 326 | 359 | 326 | ||||||||||||||||||||
| FINANCIAL INFORMATION AND RATIOS EXCLUDING CERTAIN ITEMS (Non-GAAP Financial Information): | ||||||||||||||||||||||||
| Noninterest income as a percent of total income (2) | 27.86 | % | 25.12 | % | 2.74 | % | 27.71 | % | 28.03 | % | -0.32 | % | ||||||||||||
| Merger and consolidation costs on a net of tax basis (3) | $ | 5,275 | $ | 9,566 | -45 | % | $ | 855 | $ | 2,125 | -60 | % | ||||||||||||
| Per diluted share: | 0.03 | 0.07 | -57 | % | 0.01 | 0.01 | 0 | % | ||||||||||||||||
| Noninterest expense (4) | $ | 602,676 | $ | 564,701 | 7 | % | $ | 154,360 | $ | 154,868 | 0 | % | ||||||||||||
| Return on average assets (5) | 1.39 | % | 1.44 | % | -0.05 | % | 1.41 | % | 1.39 | % | 0.02 | % | ||||||||||||
| Cash return on average tangible assets (5) (6) | 1.47 | % | 1.49 | % | -0.02 | % | 1.49 | % | 1.45 | % | 0.04 | % | ||||||||||||
| Return on average equity (5) | 14.73 | % | 16.77 | % | -2.04 | % | 14.86 | % | 16.18 | % | -1.32 | % | ||||||||||||
| Cash return on average tangible equity (5) (6) | 27.07 | % | 23.65 | % | 3.42 | % | 27.86 | % | 23.84 | % | 4.02 | % | ||||||||||||
| Efficiency ratio (7) | 51.71 | % | 53.09 | % | -1.38 | % | 52.32 | % | 55.85 | % | -3.53 | % | ||||||||||||
| Cash efficiency ratio (8) | 50.94 | % | 52.48 | % | -1.54 | % | 51.53 | % | 55.10 | % | -3.57 | % | ||||||||||||
| (1) | Adjusted to fully taxable equivalent basis. |
| (2) | Excludes securities gains/(losses). |
| (3) | Merger and consolidation charges consist of merger charges, certain asset write-downs, charter consolidation costs and branch closing costs. |
| (4) | Excludes pre-tax merger and consolidation costs and prepayment penalties on borrowings. |
| (5) | Excludes merger and consolidation costs, net of related tax benefits. |
| (6) | Cash ratios reflect an adjustment to add back the amortization of intangible assets, net of related tax benefits. |
| (7) | Excludes securities gains/(losses), prepayment penalties on borrowings, and merger and consolidation costs. |
| (8) | Excludes securities gains/(losses), prepayment penalties on borrowings, merger and consolidation costs, and amortization of intangible assets. |
Banknorth Group, Inc. and Subsidiaries
| Three Months Ended December 31, | ||||||||||||||||||||||||
| 2003 | 2002 | |||||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||||||||||
| (Dollars in Thousands) | Balance | Rate | Balance | Rate | ||||||||||||||||||||
Assets | ||||||||||||||||||||||||
| Loans and leases (1) | ||||||||||||||||||||||||
| Residential real estate mortgages | $ | 2,718,881 | 5.25 | % | $ | 2,641,957 | 6.42 | % | ||||||||||||||||
| Commercial real estate mortgages | 5,392,549 | 5.78 | % | 4,504,625 | 6.71 | % | ||||||||||||||||||
| Commercial loans and leases | 3,233,277 | 4.83 | % | 2,844,994 | 5.57 | % | ||||||||||||||||||
| Consumer loans and leases | 4,676,259 | 5.29 | % | 3,830,542 | 6.45 | % | ||||||||||||||||||
| 16,020,966 | 5.36 | % | 13,822,118 | 6.35 | % | |||||||||||||||||||
| Securities | 7,432,088 | 4.09 | % | 6,896,813 | 5.04 | % | ||||||||||||||||||
| Federal funds sold and other short-term investments | 5,176 | 2.00 | % | 22,576 | 1.54 | % | ||||||||||||||||||
| Total earning assets | 23,458,230 | 4.96 | % | 20,741,507 | 5.91 | % | ||||||||||||||||||
| Bank owned life insurance | 484,428 | 376,857 | ||||||||||||||||||||||
| Noninterest-earning assets | 2,124,138 | 1,527,324 | ||||||||||||||||||||||
| Total assets | $ | 26,066,796 | $ | 22,645,688 | ||||||||||||||||||||
Liabilities & Shareholders’ Equity | ||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||
| Regular savings | $ | 2,476,385 | 0.37 | % | $ | 1,835,068 | 0.69 | % | ||||||||||||||||
| Retail money market and NOW accounts | 6,982,431 | 0.79 | % | 5,889,603 | 1.28 | % | ||||||||||||||||||
| Retail certificates of deposit | 4,803,437 | 2.10 | % | 4,624,776 | 2.90 | % | ||||||||||||||||||
| Brokered deposits | — | 0.00 | % | 22,431 | 1.70 | % | ||||||||||||||||||
| Total interest-bearing deposits | 14,262,253 | 1.16 | % | 12,371,878 | 1.80 | % | ||||||||||||||||||
| Borrowed funds | 5,643,402 | 2.51 | % | 5,296,244 | 3.83 | % | ||||||||||||||||||
| Total interest-bearing liabilities | 19,905,655 | 1.54 | % | 17,668,122 | 2.41 | % | ||||||||||||||||||
| Noninterest bearing deposits | 3,494,692 | 2,837,369 | ||||||||||||||||||||||
| Other liabilities | 198,424 | 196,567 | ||||||||||||||||||||||
| Shareholders’ equity | 2,468,025 | 1,943,630 | ||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 26,066,796 | $ | 22,645,688 | ||||||||||||||||||||
| Net earning assets | $ | 3,552,575 | $ | 3,073,385 | ||||||||||||||||||||
| Net interest income (fully taxable equivalent) | $ | 214,865 | $ | 200,769 | ||||||||||||||||||||
| Less: fully taxable equivalent adjustments | (1,577 | ) | (1,206 | ) | ||||||||||||||||||||
| Net interest income | $ | 213,288 | $ | 199,563 | ||||||||||||||||||||
| Net interest rate spread (fully taxable equivalent) | 3.42 | % | 3.50 | % | ||||||||||||||||||||
| Net interest margin (fully taxable equivalent) | 3.65 | % | 3.86 | % | ||||||||||||||||||||
| (1) | Loans and leases include portfolio loans and leases, loans held for sale and nonperforming loans. |
Banknorth Group, Inc. and Subsidiaries
| Year Ended December 31, | ||||||||||||||||
| 2003 | 2002 | |||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||
| (Dollars in Thousands) | Balance | Rate | Balance | Rate | ||||||||||||
Assets | ||||||||||||||||
| Loans and leases (1) | ||||||||||||||||
| Residential real estate mortgages | $ | 2,839,969 | 5.61 | % | $ | 2,635,952 | 6.75 | % | ||||||||
| Commercial real estate mortgages | 5,162,413 | 6.06 | % | 4,293,816 | 6.95 | % | ||||||||||
| Commercial loans and leases | 3,153,293 | 5.10 | % | 2,665,973 | 5.94 | % | ||||||||||
| Consumer loans and leases | 4,477,532 | 5.61 | % | 3,641,062 | 6.89 | % | ||||||||||
| 15,633,207 | 5.65 | % | 13,236,803 | 6.69 | % | |||||||||||
| Securities | 7,464,162 | 4.22 | % | 6,403,807 | 5.52 | % | ||||||||||
| Federal funds sold and other short-term investments | 11,004 | 1.46 | % | 60,257 | 1.77 | % | ||||||||||
| Total earning assets | 23,108,373 | 5.19 | % | 19,700,867 | 6.30 | % | ||||||||||
| Bank owned life insurance | 465,446 | 359,994 | ||||||||||||||
| Noninterest-earning assets | 2,042,528 | 1,399,858 | ||||||||||||||
| Total assets | $ | 25,616,347 | $ | 21,460,719 | ||||||||||||
Liabilities & Shareholders’ Equity | ||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||
| Regular savings | $ | 2,399,179 | 0.46 | % | $ | 1,743,501 | 0.89 | % | ||||||||
| Retail money market and NOW accounts | 6,652,030 | 0.89 | % | 5,463,179 | 1.45 | % | ||||||||||
| Retail certificates of deposit | 5,027,739 | 2.36 | % | 4,693,518 | 3.18 | % | ||||||||||
| Brokered deposits | — | 0.00 | % | 43,311 | 1.83 | % | ||||||||||
| Total interest-bearing deposits | 14,078,948 | 1.34 | % | 11,943,509 | 2.05 | % | ||||||||||
| Borrowed funds | 5,693,420 | 2.87 | % | 4,870,795 | 3.98 | % | ||||||||||
| Total interest-bearing liabilities | 19,772,368 | 1.78 | % | 16,814,304 | 2.61 | % | ||||||||||
| Noninterest bearing deposits | 3,224,035 | 2,623,135 | ||||||||||||||
| Other liabilities | 203,018 | 185,216 | ||||||||||||||
| Shareholders’ equity | 2,416,926 | 1,838,064 | ||||||||||||||
| Total liabilities and shareholders’ equity | $ | 25,616,347 | $ | 21,460,719 | ||||||||||||
| Net earning assets | $ | 3,336,005 | $ | 2,886,563 | ||||||||||||
| Net interest income (fully taxable equivalent) | $ | 846,727 | $ | 801,520 | ||||||||||||
| Less: fully taxable equivalent adjustments | (5,896 | ) | (5,003 | ) | ||||||||||||
| Net interest income | $ | 840,831 | $ | 796,517 | ||||||||||||
| Net interest rate spread (fully taxable equivalent) | 3.41 | % | 3.69 | % | ||||||||||||
| Net interest margin (fully taxable equivalent) | 3.66 | % | 4.07 | % | ||||||||||||
| (1) | Loans and leases include portfolio loans and leases, loans held for sale and nonperforming loans. |
Banknorth Group, Inc. and Subsidiaries
| (Dollars in thousands) | 12/31/2003 | 9/30/2003 | 6/30/2003 | 3/31/2003 | 12/31/2002 | |||||||||||||||||||
Non-performing Assets: | ||||||||||||||||||||||||
| Residential real estate mortgages | $ | 7,157 | $ | 9,135 | $ | 9,827 | $ | 9,828 | $ | 5,781 | ||||||||||||||
| Commercial real estate mortgages | 19,700 | 27,069 | 19,139 | 22,990 | 17,649 | |||||||||||||||||||
| Commercial business loans and leases | 24,412 | 22,857 | 24,577 | 38,562 | 32,693 | |||||||||||||||||||
| Consumer loans and leases | 8,493 | 7,664 | 7,192 | 7,457 | 9,194 | |||||||||||||||||||
| Total non-performing loans | 59,762 | 66,725 | 60,735 | 78,837 | 65,317 | |||||||||||||||||||
| Other non-performing assets (net) | 3,341 | 3,632 | 3,725 | 3,817 | 3,636 | |||||||||||||||||||
| Total non-performing assets | $ | 63,103 | $ | 70,357 | $ | 64,460 | $ | 82,654 | $ | 68,953 | ||||||||||||||
Allowance for loan and lease losses | $ | 232,287 | $ | 229,581 | $ | 227,240 | $ | 226,677 | $ | 208,273 | ||||||||||||||
Net loan charge-offs: | ||||||||||||||||||||||||
| Real estate mortgages | $ | 10 | $ | 58 | $ | 31 | $ | 33 | ($274 | ) | ||||||||||||||
| Commercial real estate mortgages | (168 | ) | (269 | ) | (474 | ) | (272 | ) | 389 | |||||||||||||||
| Total real estate | (158 | ) | (211 | ) | (443 | ) | (239 | ) | 115 | |||||||||||||||
| Commercial business loans and leases | 2,402 | 518 | 4,468 | 2,516 | 2,432 | |||||||||||||||||||
| Consumer loans and leases | 8,111 | 7,852 | 5,913 | 6,566 | 6,670 | |||||||||||||||||||
| Total net charge-offs | $ | 10,355 | $ | 8,159 | $ | 9,938 | $ | 8,843 | $ | 9,217 | ||||||||||||||
Ratios: | ||||||||||||||||||||||||
| Allowance for loan and lease losses to total loans and leases | 1.42 | % | 1.44 | % | 1.44 | % | 1.46 | % | 1.48 | % | ||||||||||||||
| Allowance for loan and lease losses to non-performing loans | 388.69 | % | 344.07 | % | 374.15 | % | 287.53 | % | 318.87 | % | ||||||||||||||
| Non-performing loans to total loans and leases | 0.37 | % | 0.42 | % | 0.39 | % | 0.51 | % | 0.46 | % | ||||||||||||||
| Non-performing assets to total assets | 0.24 | % | 0.27 | % | 0.25 | % | 0.31 | % | 0.29 | % | ||||||||||||||
| Net charge-offs to average loans — QTD (1) | 0.26 | % | 0.20 | % | 0.25 | % | 0.24 | % | 0.27 | % | ||||||||||||||
| Net charge-offs to average loans — YTD (1) | 0.24 | % | 0.23 | % | 0.25 | % | 0.24 | % | 0.29 | % | ||||||||||||||
| (1) | Annualized |
Banknorth Group, Inc. and Subsidiaries
| Three Months Ended | ||||||||||||||||||||
| (In thousands, except per share data) | 12/31/2003 | 9/30/2003 | 6/30/2003 | 3/31/2003 | 12/31/2002 | |||||||||||||||
| Interest and dividend income | $ | 290,414 | $ | 290,750 | $ | 302,478 | $ | 309,327 | $ | 306,569 | ||||||||||
| Interest expense | 77,126 | 80,918 | 90,904 | 103,190 | 107,006 | |||||||||||||||
| Net interest income | 213,288 | 209,832 | 211,574 | 206,137 | 199,563 | |||||||||||||||
| Provision for loan and lease losses | 10,400 | 10,500 | 10,500 | 10,901 | 10,829 | |||||||||||||||
| Net interest income after provision for loan and lease losses | 202,888 | 199,332 | 201,074 | 195,236 | 188,734 | |||||||||||||||
| Noninterest income: | ||||||||||||||||||||
| Deposit services | 25,881 | 25,167 | 23,747 | 22,526 | 22,427 | |||||||||||||||
| Insurance brokerage commissions | 11,480 | 10,930 | 10,948 | 12,357 | 12,554 | |||||||||||||||
| Merchant and electronic banking income, net | 10,542 | 11,115 | 11,098 | 9,021 | 10,376 | |||||||||||||||
| Trust and investment management services | 8,470 | 8,178 | 7,957 | 7,351 | 7,866 | |||||||||||||||
| Bank owned life insurance | 5,978 | 5,785 | 5,826 | 5,342 | 5,525 | |||||||||||||||
| Investment planning services | 4,765 | 3,761 | 3,911 | 3,256 | 3,120 | |||||||||||||||
| Net gains on sales of securities | 2,682 | 3,573 | 33,423 | 2,782 | 6,705 | |||||||||||||||
| Other noninterest income | 14,637 | 20,147 | 18,918 | 15,603 | 15,868 | |||||||||||||||
| 84,435 | 88,656 | 115,828 | 78,238 | 84,441 | ||||||||||||||||
| Noninterest expense: | ||||||||||||||||||||
| Salaries and employee benefits | 81,451 | 82,230 | 82,248 | 80,693 | 80,622 | |||||||||||||||
| Occupancy and equipment expense | 26,731 | 26,188 | 27,579 | 26,159 | 25,733 | |||||||||||||||
| Data processing | 9,881 | 10,466 | 10,415 | 10,178 | 10,514 | |||||||||||||||
| Advertising and marketing | 5,430 | 5,553 | 5,957 | 5,060 | 4,723 | |||||||||||||||
| Amortization of goodwill | — | — | — | — | — | |||||||||||||||
| Amortization of identifiable intangible assets | 2,324 | 2,320 | 2,306 | 1,997 | 2,070 | |||||||||||||||
| Merger and consolidation costs (1) | 1,316 | 808 | 1,530 | 4,450 | 3,258 | |||||||||||||||
| Write-off of branch automation project (2) | — | — | — | — | 6,170 | |||||||||||||||
| Prepayment penalties on borrowings | — | — | 30,490 | — | — | |||||||||||||||
| Other noninterest expense | 28,543 | 24,082 | 23,514 | 21,371 | 25,036 | |||||||||||||||
| 155,676 | 151,647 | 184,039 | 149,908 | 158,126 | ||||||||||||||||
| Income before income tax expense | 131,647 | 136,341 | 132,863 | 123,566 | 115,049 | |||||||||||||||
| Income tax expense | 40,085 | 46,063 | 45,338 | 42,173 | 37,911 | |||||||||||||||
| Net Income | $ | 91,562 | $ | 90,278 | $ | 87,525 | $ | 81,393 | $ | 77,138 | ||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||
| Basic | 162,149 | 161,517 | 162,312 | 157,667 | 148,226 | |||||||||||||||
| Diluted | 165,685 | 164,446 | 164,559 | 159,328 | 149,389 | |||||||||||||||
| Earnings per share: | ||||||||||||||||||||
| Basic | $ | 0.56 | $ | 0.56 | $ | 0.54 | $ | 0.52 | $ | 0.52 | ||||||||||
| Diluted | 0.55 | 0.55 | 0.53 | 0.51 | 0.52 | |||||||||||||||
| (1) | Merger and consolidation charges consist of merger charges, certain asset write-downs, charter consolidation costs and branch closing costs. | |
| (2) | Represents previously capitalized costs written off in connection with the abandonment of a project to upgrade all teller stations and CSR desktops. |
Banknorth Group, Inc. and Subsidiaries
| Three Months Ended | ||||||||||||||||||||
| (In thousands, except per share data) | 12/31/2003 | 9/30/2003 | 6/30/2003 | 3/31/2003 | 12/31/2002 | |||||||||||||||
| Net interest income | $ | 213,288 | $ | 209,832 | $ | 211,574 | $ | 206,137 | $ | 199,563 | ||||||||||
| Net income | $ | 91,562 | $ | 90,278 | $ | 87,525 | $ | 81,393 | $ | 77,138 | ||||||||||
| Shares outstanding (end of period) | 162,188 | 161,543 | 160,843 | 163,881 | 150,579 | |||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||
| Basic | 162,149 | 161,517 | 162,312 | 157,667 | 148,226 | |||||||||||||||
| Diluted | 165,685 | 164,446 | 164,559 | 159,328 | 149,389 | |||||||||||||||
| Earnings per share: | ||||||||||||||||||||
| Basic | $ | 0.56 | $ | 0.56 | $ | 0.54 | $ | 0.52 | $ | 0.52 | ||||||||||
| Diluted | $ | 0.55 | $ | 0.55 | $ | 0.53 | $ | 0.51 | $ | 0.52 | ||||||||||
| Shareholders’ equity (end of period) | $ | 2,520,519 | $ | 2,475,580 | $ | 2,463,751 | $ | 2,498,194 | $ | 2,063,485 | ||||||||||
| Book value per share (end of period) | $ | 15.54 | $ | 15.32 | $ | 15.32 | $ | 15.24 | $ | 13.70 | ||||||||||
| Tangible book value per share (end of period) | $ | 8.37 | $ | 8.32 | $ | 8.28 | $ | 8.31 | $ | 9.09 | ||||||||||
| RATIOS & OTHER INFORMATION: | ||||||||||||||||||||
| Net interest margin (net interest income as a % of average earning assets) (1) | 3.65 | % | 3.63 | % | 3.71 | % | 3.66 | % | 3.86 | % | ||||||||||
| Net interest spread (yield on earning assets minus yield on interest-bearing liabilities) (1) | 3.42 | % | 3.39 | % | 3.45 | % | 3.37 | % | 3.50 | % | ||||||||||
| Return on average assets | 1.39 | % | 1.39 | % | 1.38 | % | 1.32 | % | 1.35 | % | ||||||||||
| Return on average equity | 14.72 | % | 14.85 | % | 14.24 | % | 14.26 | % | 15.75 | % | ||||||||||
At period end: | ||||||||||||||||||||
| Tier 1 leverage capital ratio | 6.65 | % | 6.56 | % | 6.36 | % | 6.53 | % | 7.13 | % | ||||||||||
| Tangible equity/tangible assets | 5.37 | % | 5.46 | % | 5.41 | % | 5.42 | % | 6.02 | % | ||||||||||
| Total risk based capital ratio | 11.28 | % | 11.29 | % | 10.99 | % | 11.20 | % | 12.15 | % | ||||||||||
| Non-performing loans | $ | 59,762 | $ | 66,725 | $ | 60,735 | $ | 78,837 | $ | 65,317 | ||||||||||
| Total non-performing assets | $ | 63,103 | $ | 70,357 | $ | 64,460 | $ | 82,654 | $ | 68,953 | ||||||||||
| Non-performing loans as a % of total loans | 0.37 | % | 0.42 | % | 0.39 | % | 0.51 | % | 0.46 | % | ||||||||||
| Non-performing assets as a % of total assets | 0.24 | % | 0.27 | % | 0.25 | % | 0.31 | % | 0.29 | % | ||||||||||
| Full service banking offices | 359 | 357 | 357 | 360 | 326 | |||||||||||||||
| FINANCIAL INFORMATION AND RATIOS EXCLUDING CERTAIN ITEMS (Non-GAAP Financial Information): | ||||||||||||||||||||
| Noninterest income as a percent of total income (2) | 27.71 | % | 28.85 | % | 28.03 | % | 26.80 | % | 28.03 | % | ||||||||||
| Merger and consolidation costs on a net of tax basis (3) | $ | 855 | $ | 525 | $ | 996 | $ | 2,899 | $ | 2,125 | ||||||||||
| Per diluted share: | 0.01 | — | 0.01 | 0.02 | 0.01 | |||||||||||||||
| Noninterest expense (4) | $ | 154,360 | $ | 150,839 | $ | 152,018 | $ | 145,458 | $ | 154,868 | ||||||||||
| Return on average assets (5) | 1.41 | % | 1.40 | % | 1.39 | % | 1.36 | % | 1.39 | % | ||||||||||
| Cash return on average tangible assets (5) (6) | 1.49 | % | 1.48 | % | 1.48 | % | 1.44 | % | 1.45 | % | ||||||||||
| Return on average equity (5) | 14.86 | % | 14.93 | % | 14.40 | % | 14.77 | % | 16.18 | % | ||||||||||
| Cash return on average tangible equity (5) (6) | 27.86 | % | 28.63 | % | 27.15 | % | 24.76 | % | 23.84 | % | ||||||||||
| Efficiency ratio (7) | 52.32 | % | 51.15 | % | 51.71 | % | 51.66 | % | 55.85 | % | ||||||||||
| Cash efficiency ratio (8) | 51.53 | % | 50.36 | % | 50.93 | % | 50.95 | % | 55.10 | % | ||||||||||
| (1) | Adjusted to fully taxable equivalent basis. | |
| (2) | Excludes securities gains/(losses). | |
| (3) | Merger and consolidation charges consist of merger charges, certain asset write-downs, charter consolidation costs and branch closing costs. | |
| (4) | Excludes pre-tax merger and consolidation costs and prepayment penalties on borrowings. | |
| (5) | Excludes merger and consolidation costs, net of related tax benefits. | |
| (6) | Cash ratios reflect an adjustment to add back the amortization of intangible assets, net of related tax benefits. | |
| (7) | Excludes securities gains/(losses), prepayment penalties on borrowings, and merger and consolidation costs. | |
| (8) | Excludes securities gains/(losses), prepayment penalties on borrowings, merger and consolidation costs, and amortization of intangible assets. |
Banknorth Group, Inc. and Subsidiaries
| Three Months Ended | ||||||||||||||||||||
| (In thousands, except per share data) | 12/31/2003 | 9/30/2003 | 6/30/2003 | 3/31/2003 | 12/31/2002 | |||||||||||||||
| Net income (including merger and consolidation costs) | $ | 91,562 | $ | 90,278 | $ | 87,525 | $ | 81,393 | $ | 77,138 | ||||||||||
| Add back merger and consolidation costs, net of tax | ||||||||||||||||||||
| Merger related | 862 | 525 | 1,396 | 2,927 | 2,125 | |||||||||||||||
| Branch closings | (7 | ) | — | — | (28 | ) | — | |||||||||||||
| Revised auto lease residual charge | — | — | (400 | ) | — | — | ||||||||||||||
| Excluding merger and consolidation costs | 92,417 | 90,803 | 88,521 | 84,292 | 79,263 | |||||||||||||||
| Amortization of intangibles, net of tax | 1,511 | 1,508 | 1,499 | 1,298 | 1,346 | |||||||||||||||
| Cash basis, excluding merger and consolidation costs | $ | 93,928 | $ | 92,311 | $ | 90,020 | $ | 85,590 | $ | 80,609 | ||||||||||
Basic earnings per share | $ | 0.56 | $ | 0.56 | $ | 0.54 | $ | 0.52 | $ | 0.52 | ||||||||||
| Effects of merger and consolidation costs, net of tax | 0.01 | — | 0.01 | 0.01 | 0.01 | |||||||||||||||
| Excluding merger and consolidation costs | 0.57 | 0.56 | 0.55 | 0.53 | 0.53 | |||||||||||||||
| Effects of amortization of intangibles, net of tax | 0.01 | 0.01 | — | 0.01 | 0.01 | |||||||||||||||
| Cash basis, excluding merger and consolidation costs | $ | 0.58 | $ | 0.57 | $ | 0.55 | $ | 0.54 | $ | 0.54 | ||||||||||
Diluted earnings per share | $ | 0.55 | $ | 0.55 | $ | 0.53 | $ | 0.51 | $ | 0.52 | ||||||||||
| Effects of merger and consolidation costs, net of tax | 0.01 | — | 0.01 | 0.02 | 0.01 | |||||||||||||||
| Excluding merger and consolidation costs | 0.56 | 0.55 | 0.54 | 0.53 | 0.53 | |||||||||||||||
| 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 | $ | 0.57 | $ | 0.56 | $ | 0.55 | $ | 0.54 | $ | 0.54 | ||||||||||
Return on average assets | 1.39 | % | 1.39 | % | 1.38 | % | 1.32 | % | 1.35 | % | ||||||||||
| Effects of merger and consolidation costs, net of tax | 0.02 | % | 0.01 | % | 0.01 | % | 0.04 | % | 0.04 | % | ||||||||||
| Excluding merger and consolidation costs | 1.41 | % | 1.40 | % | 1.39 | % | 1.36 | % | 1.39 | % | ||||||||||
| Effects of amortization of intangibles, net of tax | 0.08 | % | 0.08 | % | 0.09 | % | 0.08 | % | 0.06 | % | ||||||||||
| Cash basis, excluding merger and consolidation costs | 1.49 | % | 1.48 | % | 1.48 | % | 1.44 | % | 1.45 | % | ||||||||||
Return on average equity | 14.72 | % | 14.85 | % | 14.24 | % | 14.26 | % | 15.75 | % | ||||||||||
| Effects of merger and consolidation costs, net of tax | 0.14 | % | 0.08 | % | 0.16 | % | 0.51 | % | 0.43 | % | ||||||||||
| Excluding merger and consolidation costs | 14.86 | % | 14.93 | % | 14.40 | % | 14.77 | % | 16.18 | % | ||||||||||
| Effects of amortization of intangibles, net of tax | 13.00 | % | 13.70 | % | 12.75 | % | 9.99 | % | 7.66 | % | ||||||||||
| Cash basis, excluding merger and consolidation costs | 27.86 | % | 28.63 | % | 27.15 | % | 24.76 | % | 23.84 | % | ||||||||||
Efficiency ratio | 52.29 | % | 50.80 | % | 56.21 | % | 52.71 | % | 55.68 | % | ||||||||||
| Effects of securities gains and prepayment penalties on borrowings | 0.47 | % | 0.62 | % | -3.98 | % | 0.53 | % | 1.34 | % | ||||||||||
| Effects of merger and consolidation costs | -0.44 | % | -0.27 | % | -0.52 | % | -1.58 | % | -1.17 | % | ||||||||||
| Excluding securities gains, prepayment penalties on borrowings, and merger and consolidation costs | 52.32 | % | 51.15 | % | 51.71 | % | 51.66 | % | 55.85 | % | ||||||||||
| Effects of amortization of intangibles | -0.79 | % | -0.79 | % | -0.78 | % | -0.71 | % | -0.75 | % | ||||||||||
| Cash basis, excluding securities gains, prepayment penalties on borrowings, and merger and consolidation costs | 51.53 | % | 50.36 | % | 50.93 | % | 50.95 | % | 55.10 | % | ||||||||||
Non Interest Income | $ | 84,435 | $ | 88,656 | $ | 115,828 | $ | 78,238 | $ | 84,441 | ||||||||||
| Net gains on sales of securities | 2,682 | 3,573 | 33,423 | 2,782 | 6,705 | |||||||||||||||
| Excluding securities gains | $ | 81,753 | $ | 85,083 | $ | 82,405 | $ | 75,456 | $ | 77,736 | ||||||||||
Non Interest Expense | $ | 155,676 | $ | 151,647 | $ | 184,039 | $ | 149,908 | $ | 158,126 | ||||||||||
| Merger and consolidation costs | 1,316 | 808 | 1,530 | 4,450 | 3,258 | |||||||||||||||
| Write-off of branch automation project | — | — | — | — | 6,170 | |||||||||||||||
| Prepayment penalties on borrowings | — | — | 30,490 | — | — | |||||||||||||||
| Excluding merger and consolidation costs, write-off of branch automation project and prepayment penalties on borrowings | $ | 154,360 | $ | 150,839 | $ | 152,019 | $ | 145,458 | $ | 148,698 | ||||||||||
Banknorth Group, Inc. and Subsidiaries
| Year Ended | ||||||||||||
| (In thousands, except per share data) | 12/31/2003 | 12/31/2002 | ||||||||||
| Net income (including merger and consolidation costs) | $ | 350,759 | $ | 298,638 | ||||||||
| Add back merger and consolidation costs, net of tax | ||||||||||||
| Merger related | 5,710 | 7,486 | ||||||||||
| Branch closings | (35 | ) | (260 | ) | ||||||||
| Charter consolidation | — | 2,340 | ||||||||||
| Revised auto lease residual charge | (400 | ) | — | |||||||||
| Excluding merger and consolidation costs | 356,034 | 308,204 | ||||||||||
| Amortization of intangibles, net of tax | 5,815 | 4,220 | ||||||||||
| Cash basis, excluding merger and consolidation costs | $ | 361,849 | $ | 312,424 | ||||||||
Basic earnings per share | $ | 2.18 | $ | 2.01 | ||||||||
| Effects of merger and consolidation costs, net of tax | 0.03 | 0.07 | ||||||||||
| Excluding merger and consolidation costs | 2.21 | 2.08 | ||||||||||
| Effects of amortization of intangibles, net of tax | 0.04 | 0.03 | ||||||||||
| Cash basis, excluding merger and consolidation costs | $ | 2.25 | $ | 2.11 | ||||||||
Diluted earnings per share | $ | 2.15 | $ | 1.99 | ||||||||
| Effects of merger and consolidation costs, net of tax | 0.03 | 0.07 | ||||||||||
| Excluding merger and consolidation costs | 2.18 | 2.06 | ||||||||||
| Effects of amortization of intangibles, net of tax | 0.03 | 0.03 | ||||||||||
| Cash basis, excluding merger and consolidation costs | $ | 2.21 | $ | 2.09 | ||||||||
Return on average assets | 1.37 | % | 1.39 | % | ||||||||
| Effects of merger and consolidation costs, net of tax | 0.02 | % | 0.05 | % | ||||||||
| Excluding merger and consolidation costs | 1.39 | % | 1.44 | % | ||||||||
| Effects of amortization of intangibles, net of tax | 0.08 | % | 0.05 | % | ||||||||
| Cash basis, excluding merger and consolidation costs | 1.47 | % | 1.49 | % | ||||||||
Return on average equity | 14.51 | % | 16.25 | % | ||||||||
| Effects of merger and consolidation costs, net of tax | 0.22 | % | 0.52 | % | ||||||||
| Excluding merger and consolidation costs | 14.73 | % | 16.77 | % | ||||||||
| Effects of amortization of intangibles, net of tax | 12.34 | % | 6.88 | % | ||||||||
| Cash basis, excluding merger and consolidation costs | 27.07 | % | 23.65 | % | ||||||||
Efficiency ratio | 53.09 | % | 54.10 | % | ||||||||
| Effects of securities gains and prepayment penalties on borrowings | -0.69 | % | 0.37 | % | ||||||||
| Effects of merger and consolidation costs | -0.69 | % | -1.38 | % | ||||||||
| Excluding securities gains, prepayment penalties on borrowings, and merger and consolidation costs | 51.71 | % | 53.09 | % | ||||||||
| Effects of amortization of intangibles | -0.77 | % | -0.61 | % | ||||||||
| Cash basis, excluding securities gains, prepayment penalties on borrowings, and merger and consolidation costs | 50.94 | % | 52.48 | % | ||||||||
Non Interest Income | $ | 367,159 | $ | 274,508 | ||||||||
| Net gains on sales of securities | 42,460 | 7,282 | ||||||||||
| Excluding securities gains | $ | 324,699 | $ | 267,226 | ||||||||
Non Interest Expense | $ | 641,270 | $ | 579,392 | ||||||||
| Merger and consolidation costs | 8,104 | 14,691 | ||||||||||
| Write-off of branch automation project | — | 6,170 | ||||||||||
| Prepayment penalties on borrowings | 30,490 | — | ||||||||||
| Excluding merger and consolidation costs, write-off of branch automation project and prepayment penalties on borrowings | $ | 602,676 | $ | 558,531 | ||||||||
