UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT FORM
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 11, 1997
BANKNORTH GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-18173 03-0321189
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
Banknorth Group, Inc.
300 Financial Plaza
P.O. Box 5420
Burlington, VT 05401-5420
(Address of principal executive offices)
Registrant's telephone number, including area code: (802) 658-9959
Not applicable
(Former name or former address, if changed since last report)
Item 5. Other Events
On April 11, 1997, Banknorth Group, Inc. (the Company) issued a press
release relating to the consolidated results of the operations and financial
position of the Company and its subsidiaries for the quarter ended and as of
March 31, 1997. The text of the press release, including unaudited
financial information, is attached as an exhibit to this report.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
(99) Press release dated April 11, 1997
For Release: Friday April 11, 1997, 8:00 a.m.
Contact: David P. Reville Thomas J. Pruitt
Director, Corporate Communications EVP & CFO
(802) 860-5474 (802) 860-5558
BANKNORTH REPORTS FIRST QUARTER 1997 EARNINGS
BURLINGTON, VT, April 11, 1997 -- Banknorth Group, Inc. (NASDAQ - BKNG)
today announced earnings results for the first quarter of 1997. Net income
for the three months ended March 31, 1997, was $7.1 million, or $.90 per
share, compared to $4.8 million, or $.65 per share, for the first quarter of
1996, an increase of $2.3 million, or 48.4%. The results for the first
quarter of 1996, included one-time charges, net of income taxes, of $1.4
million, or $.19 per share. The one-time charges in 1996 accompanied the
startups of First Massachusetts Bank, The Stratevest Group and conversion to
a new ATM data processing system. Making the announcement was William H.
Chadwick, president and chief executive officer.
Net interest income, $28.5 million in the first quarter of 1997,
increased $3.9 million or 16.0%, over the first quarter of 1996. The net
interest margin for the three months ended March 31, 1997, was 4.73%. Total
non-interest income, $6.6 million for the three months ended March 31,
1997, increased $740 thousand, or 12.6%, over the first quarter of 1996.
Total non-interest expenses, at $23.0 million for the three months ended
March 31, 1997, were up $828 thousand, or 3.7%, from the level experienced
in the first quarter of 1996. Included in total non-interest charges for
the first quarter of 1996 was $2.1 million of non-recurring expenses
discussed above.
Total assets as of March 31, 1997, were $2.6 billion, compared to $2.4
billion at March 31, 1996, an increase of $234.6 million, or 9.7%. Total
loans were $1.9 billion and total deposits were $2.1 billion as of March 31,
1997, reflecting increases of $164.4 million, or 9.5%, and $37.7 million, or
1.8%, respectively, from March 31, 1996.
Banknorth Group, Inc. is a financial services company headquartered in
Burlington, Vermont. The Company offers a full range of banking and
financial management services through its seven community banks, Banknorth
Mortgage Company, and Stratevest Group, N.A., a trust and investment
management company. Customers' banking needs are served 24 hours a day
through an automated telephone banking system and ATM network, and during
business hours through offices located throughout Vermont, Massachusetts and
New Hampshire.
(SEE COMPARATIVE FINANCIAL RESULTS ATTACHED)
Banknorth Group, Inc.
Comparative Financial Results
(In thousands, except share and per share data)
For the three months ended March 31, Income Statements For the years ended December 31,
- ------------------------------------------- ------------------------------------- -------------------------------------------
1997 1996 Change % 1996 1995 Change %
- ---------- ---------- ---------- ------- ---------- ---------- ---------- -------
$ 50,982 $ 43,133 $ 7,849 18.2% Interest income $ 190,008 $ 152,624 $ 37,384 24.5%
22,434 18,517 3,917 21.2% Interest expense 81,140 67,980 13,160 19.4%
- ---------------------------------- ----------------------------------
28,548 24,616 3,932 16.0% Net interest income 108,868 84,644 24,224 28.6%
1,750 1,300 450 34.6% Provision for loan losses 5,600 4,375 1,225 28.0%
- ---------------------------------- ----------------------------------
26,798 23,316 3,482 14.9% 103,268 80,269 22,999 28.7%
133 -- 133 -- Non-recurring other income -- -- -- --
6,493 5,886 607 10.3% Other non-interest income 25,303 20,910 4,393 21.0%
- ---------------------------------- ----------------------------------
6,626 5,886 740 12.6% Total non-interest income 25,303 20,910 4,393 21.0%
1,306 731 575 78.7% Goodwill amortization 4,652 632 4,020 636.1%
- 2,146 (2,146) -100.0% Non-recurring expenses 2,396 -- 2,396 --
21,675 19,276 2,399 12.4% Other expenses 84,152 69,957 14,195 20.3%
- ---------------------------------- ----------------------------------
22,981 22,153 828 3.7% Total non-interest expenses 91,200 70,589 20,611 29.2%
- ---------------------------------- ----------------------------------
10,443 7,049 3,394 48.1% Income before income taxes 37,371 30,590 6,781 22.2%
3,393 2,299 1,094 47.6% Income taxes 11,981 8,217 3,764 45.8%
- ---------------------------------- ----------------------------------
$ 7,050 $ 4,750 $ 2,300 48.4% NET INCOME $ 25,390 $ 22,373 $ 3,017 13.5%
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Per Share Information
--------------------------------------
7,826,648 7,332,386 494,262 6.7% Wtd. avg number of shares outstanding 7,703,758 6,804,425 899,333 13.2%
$ 0.90 $ 0.65 $ 0.25 38.5% Net income $ 3.30 $ 3.29 $ 0.01 0.3%
0.10 0.24 -0.14% -58.3% Goodwill and non-recurring, after 0.57 0.09 0.48 533.3%
income tax effect
1.00 0.89 0.11 12.4% Net income, excluding goodwill and 3.87 3.38 0.49 14.5%
non-recurring
7,826,648 7,826,648 -- -- Shares outstanding 7,826,648 6,804,425 1,022,223 15.0%
$ 26.55 $ 24.50 $ 2.05 8.4% Book value $ 26.41 $ 23.50 $ 2.91 12.4%
22.10 19.38 2.72 14.0% Tangible book value 21.80 22.25 -0.45 -2.0%
0.29 0.25 0.04 16.0% Cash dividends declared per share 1.00 0.92 0.08 8.7%
40.50 35.25 5.25 14.9% Closing price at period end 41.50 38.50 3.00 7.8%
Ratios
---------------------------------------
1.09% 0.88% 0.21% 23.9% Return on average total assets 1.06% 1.19% -0.13% -10.9%
13.77% 10.88% 2.89% 26.6% Return on average shareholders' equity 13.27% 15.33% -2.06% -13.4%
32.22% 38.46% -6.24% -16.2% Dividend payout ratio 30.30% 27.96% 2.34% 8.4%
11.4 11.1 0.3 2.7% Price/Earnings (last four reported 12.6 11.7 0.9 7.7%
quarters)
183.3% 181.9% 1.4% 0.8% Price/Tangible book value 190.4% 173.0% 17.4% 10.1%
$ 28,686 $ 24,796 $ 3,890 15.7% Net interest income, f.t.e. basis $ 109,467 $ 85,331 $ 24,136 28.3%
4.73% 4.93% -0.20% -4.1% Net interest margin 4.86% 4.79% 0.07% 1.5%
61.37% 62.73% -1.36% -2.2% Efficiency ratio 62.11% 65.11% -3.00% -4.6%
2.49% 2.66% -0.17% -6.4% Expense ratio 2.59% 2.70% -0.11% -4.1%
0.76% 0.66% 0.10% 15.2% NPAs as a % of total assets, p.e. 0.76% 0.79% -0.03% -3.8%
123.27% 158.21% -34.94% -22.1% Allow. for loan losses as % of 124.00% 158.15% -34.15% -21.6%
NPLs, p.e.
1.24% 1.39% -0.15% -10.8% Allow. for loan losses as % total 1.27% 1.64% -0.37% -22.6%
loans, p.e.
7.84% 7.94% -0.10% -1.3% Shareholders' equity to total 7.95% 8.37% -0.42% -5.0%
assets, p.e.
6.62% 6.39% 0.23% 3.6% Tangible sh equity to tangible 6.65% 7.96% -1.31% -16.5%
assets, p.e.
Balances as of Balance Sheets Balances as of
- ------------------------------------------- ------------------------------------- -------------------------------------------
3-31-97 3-31-96 Change % 12-31-96 12-31-95 Change %
- ---------- ---------- ---------- ------- ---------- ---------- ---------- -------
$1,899,495 $1,735,050 $ 164,445 9.5% Loans $1,848,232 $1,351,053 $ 497,179 36.8%
8,533 17,766 (9,233) -52.0% Loans held for sale 12,106 19,125 (7,019) -36.7%
542,861 442,452 100,409 22.7% Securities available for sale 531,269 359,085 172,184 48.0%
31,977 47,154 (15,177) -32.2% Investment securities 34,194 49,680 (15,486) -31.2%
101 3,600 (3,499) -97.2% Money market investments 101 650 (549) -84.5%
- ---------------------------------- ----------------------------------
2,482,967 2,246,022 236,945 10.5% Total earning assets 2,425,902 1,779,593 646,309 36.3%
(23,638) (24,183) 545 2.3% Allowance for loan losses (23,520) (22,095) (1,425) -6.4%
34,836 40,063 (5,227) -13.0% Goodwill 36,142 8,553 27,589 322.6%
154,495 152,204 2,291 1.5% Other assets 162,799 144,123 18,676 13.0%
- ---------------------------------- ----------------------------------
$2,648,660 $2,414,106 $ 234,554 9.7% Total assets $2,601,323 $1,910,174 $ 691,149 36.2%
================================== ==================================
Deposits:
$ 281,164 $ 259,833 $ 21,331 8.2% Non-interest bearing $ 287,598 $ 228,334 $ 59,264 26.0%
1,797,152 1,780,792 16,360 0.9% Interest bearing 1,778,466 1,332,435 446,031 33.5%
- ---------------------------------- ----------------------------------
2,078,316 2,040,625 37,691 1.8% Total 2,066,064 1,560,769 505,295 32.4%
316,912 111,910 205,002 183.2% Short-term borrowed funds 280,461 116,213 164,248 141.3%
23,679 49,366 (25,687) -52.0% Long-term debt 25,923 55,997 (30,074) -53.7%
21,979 20,484 1,495 7.3% Other liabilities 22,138 17,259 4,879 28.3%
207,774 191,721 16,053 8.4% Shareholders' equity 206,737 159,936 46,801 29.3%
- ---------------------------------- ----------------------------------
$2,648,660 $2,414,106 $ 234,554 9.7% Total liabilities & shareholders' $2,601,323 $1,910,174 $ 691,149 36.2%
================================== equity ==================================
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report on Form 8-K to be signed on its
behalf by the undersigned hereunto duly authorized.
BANKNORTH GROUP, INC.
Date: April 11, 1997 By: /s/ Neal E. Robinson
Neal E. Robinson
Senior Vice President & Treasurer