EX-99 3 a4561254ex991.txt CCBT FINANCIAL COMPANIES, INC. PRESS RELEASE Exhibit 99.1 CCBT Financial Companies, Inc. Report 2003 Fourth Quarter and Year-to-Date Earnings SOUTH YARMOUTH, Mass.--(BUSINESS WIRE)--Jan. 29, 2004--CCBT Financial Companies, Inc. (NASDAQ: CCBT) Chief Executive Officer and President Stephen B. Lawson announced fourth quarter 2003 earnings of $1.2 million, or $.14 per share, as compared to $1.0 million, or $.11 per share, earned in the comparable prior year period. For the year ended December 31, 2003, the Company reported earnings of $6.4 million, or $0.75 per share, as compared to $14.4 million, or $1.68 per share in 2002. Mr. Lawson commented, "In 2003, the Company continued its focus on increasing non-bank fee-based revenues. Investment services, brokerage and insurance fees, respectively, increased $789,000 or 11.6%, $296,000 or 19.8% and $242,000 or 9.5% in 2003. However, the historic lows in interest rates as well as several significant events this year negatively affected our 2003 fourth quarter and twelve-month earnings. The lows in interest rates and mortgage rates, in particular, significantly accelerated pre-payments on both residential mortgage loans and investment securities backed by housing collateral, resulting in reinvestment of principal proceeds at much lower rates. This accelerated the write-off of deferred costs and mortgage servicing rights on residential mortgage loans and hastened the amortization of premiums paid on mortgage related investment securities. Net interest income reported for both the quarter and year have decreased due to the combination of earning asset yields having declined faster than our ability to lower funding costs, the accelerated write-down of residential mortgage deferred costs and mortgage servicing rights, and the accelerated amortization of premiums on investment securities. During the year, we opened financial centers in Mashpee Commons and Pine Hills, closed nine transaction locations in Stop & Shop supermarkets and extended the hours of operation in our full service financial offices. Our twelve-month earnings results reflect the impact of these factors and events, as well as the settlement of the real estate investment trust (REIT) tax issue with the Massachusetts Department of Revenue and losses from the impairment and sale of investment securities. The REIT settlement caused us to recognize an increase in income tax and related interest expense, net of tax benefits, of $2.5 million in 2003 while losses from the impairment and sale of investment securities were $1.7 million in 2003 as compared with a gain in 2002 of $2.1 million. The return on average equity and assets for the fourth quarter of 2003 were 4.14% and 0.35% compared to 3.20% and 0.25%, respectively for the same quarter in 2002. The return on average equity and assets for 2003 were 5.64% and 0.48% compared to 12.24% and 0.99%, respectively, for 2002." Total assets were $1.3 billion at December 31, 2003 as compared with $1.5 billion at December 31, 2002. Year over year deposit growth of $62.9 million was offset by the $189.8 million reduction in total borrowings. The decrease in sources of funds was primarily reflected in the $97 million decrease in investment securities and with total gross loans down $7.8 million to $793.6 million from $801.4 million reported one year ago. Solid growth in both commercial mortgages and home equity loans were offset by the decrease in residential mortgages. Total non-performing assets were $4.1 million and $2.8 million at December 31, 2003 and 2002, respectively. The allowance for loan losses was $12.7 million on December 31, 2003, up modestly from $12.4 million a year ago. Capital at December 31, 2003 and 2002 were $114.4 million and $118.4 million with capital to assets ratios of 8.6% and 8.0%, respectively. CCBT Financial Companies, Inc. announced on December 9, 2003 that it had reached a definitive agreement to be acquired by Banknorth Group, Inc. (NYSE: BNK) in an all-stock transaction valued at approximately $300 million. Banknorth Group's banking subsidiary, Banknorth, N.A., currently operates 114 branches in Massachusetts and has recently announced the acquisition of Foxborough Savings Bank and First & Ocean Bancorp. Pro forma, the three acquisitions will increase Banknorth's total branches in Massachusetts by 35 to 149. Banknorth has been an innovator in bringing its customers insurance and investment services to complement a full range of banking services. Through this transaction, we expect to enhance the commercial and consumer lending expertise available to current and prospective customers. The Company also recently declared a $0.19 quarterly dividend to be paid January 30, 2004 to stockholders of record January 20, 2004. CCBT Financial Companies, Inc. is a bank holding company with total assets of $1.3 billion on December 31, 2003. Its subsidiary, Cape Cod Bank and Trust Company, N.A., owns CCBT Brokerage Direct and a 51% interest in Murray & MacDonald Insurance Services, Inc. The Company offers a wide range of financial products and services including deposit services, loans, municipal services, insurance, trust, investments and retirement services to individuals, municipalities and businesses. To find out more about CCBT Financial Companies, Inc. and our services, please visit our web site at www.ccbt.com or stop in for a visit at one of our twenty-seven branch locations. This report may contain statements that are not historical facts and are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, future financial results of the Company. You should not rely on forward-looking statements because the Company's actual results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, delays in completing the merger with Banknorth, difficulties in integrating the Company with Banknorth, changes in prevailing interest rates and increases in mortgage prepayments which may reduce interest margin, changes in national and local economic conditions and equity and fixed income market fluctuations. Reference is made to the Company's filings on Forms 10-K with the Securities and Exchange Commission for factors that could cause actual results to differ materially from those anticipated. Our Form 10-K filing with the SEC and available on our web site will contain more detailed financial information. ASSETS ($000) 12/31/03 12/31/02 Cash & cash equivalents 63,724 60,798 Securities available for sale 359,592 510,837 Securities held to maturity 54,167 0 Other securities 24,738 24,738 Construction loans 87,431 99,544 Commercial mortgages 316,317 283,458 Commercial loans 86,608 84,882 Residential mortgages 211,546 262,095 Home equity loans 87,098 65,794 Other consumer loans 4,611 5,629 Total portfolio loans 793,611 801,402 Loans held for sale 7,306 37,332 Loan loss reserve (12,713) (12,384) Goodwill 803 803 Other intangibles 4,433 5,511 Total intangible assets 5,236 6,314 Mortgage servicing rights 2,780 2,088 Real estate owned 1,500 1,500 Other assets 38,292 49,258 Total assets 1,338,233 1,481,883 LIABILITIES ($000) Savings/NOW accounts 281,977 259,587 Money market deposits 302,962 294,295 Other consumer time 112,390 121,961 Time deposits over $100,000 56,459 37,344 Short-term borrowings 69,533 227,091 Long-term borrowings 138,482 170,750 Total interest-bearing liab. 961,803 1,111,028 Demand deposits 251,313 229,033 Minority interest 282 234 Other liabilities 10,358 23,141 Total liabilities 1,223,756 1,363,436 EQUITY ($000) Common equity 114,477 118,447 Net unrealized loss on AFS securities (907) (1,018) Book value per share 13.60 13.79 Common shares issued 9,061,064 9,061,064 Treasury shares (640,866) (470,266) Common shares outstanding 8,420,198 8,590,798 Fourth Fourth Quarter Quarter INCOME STATEMENT ($000) 03 02 YTD 03 YTD 02 Interest income 14,197 18,700 59,212 77,237 Interest expense 4,079 8,419 17,798 29,118 Net interest income 10,118 10,281 41,414 48,119 Net interest income (FTE) 10,183 10,363 41,708 48,468 Loan loss provision 0 0 0 0 (Loss) gain on securities 0 (1,104) (1,692) 2,074 Financial advisor fees 1,772 1,665 7,596 6,807 Service charge on deposits 553 531 2,358 2,210 Gain on sale of loans 108 293 3,180 1,941 Other noninterest income 2,429 2,247 10,039 9,917 Total noninterest income 4,862 3,632 21,481 22,949 Employee salaries and benefits 7,397 6,661 26,195 27,074 Occupancy and equipment 1,460 1,630 6,048 6,289 Foreclosed property expense 199 17 253 78 Amortization of intangibles 306 332 1,225 1,225 Deposit insurance expense 41 39 165 162 Other noninterest expense 3,770 3,595 14,693 14,117 Total noninterest expense 13,173 12,274 48,579 48,945 Net income before taxes 1,807 1,639 14,316 22,123 Tax provision 632 687 7,939 7,683 Net income 1,175 952 6,377 14,440 Basic EPS 0.14 0.11 0.75 1.68 Diluted EPS 0.14 0.11 0.75 1.67 Dividends per common share 0.19 0.19 0.76 0.76 Avg shares for basic EPS 8,420 8,590 8,463 8,613 Avg shares for diluted EPS 8,463 8,623 8,488 8,649 Fourth Fourth Quarter Quarter AVE. BALANCE SHEET ($000) 03 02 YTD 03 YTD 02 Taxable securities 445,144 579,087 447,757 488,386 Tax-exempt securities 18,622 17,971 21,353 18,252 Total portfolio loans 782,741 845,842 777,220 873,417 Loans held for sale 8,244 19,431 12,998 8,758 Other earning assets 0 0 0 0 Total earning assets 1,254,751 1,462,331 1,259,328 1,388,813 Total assets 1,331,556 1,538,600 1,336,603 1,459,477 Savings/NOW accounts 280,126 257,382 272,678 239,120 Money market deposits 324,297 310,177 303,332 289,682 Other consumer time 112,317 124,029 116,445 133,821 Time deposits over $100,000 41,437 37,845 39,539 41,642 Total interest-bearing deposits 758,177 729,433 731,994 704,265 Short-term borrowings 57,914 298,537 106,500 249,827 Long-term borrowings 139,861 145,217 132,215 152,666 Total interest-bearing liab. 955,952 1,173,187 970,709 1,106,758 Demand deposits 254,946 231,417 242,185 222,183 Minority interest 294 (76) 277 234 Other liabilities 7,741 16,007 10,392 12,355 Total liabilities 1,218,933 1,420,535 1,223,563 1,341,530 Common equity 112,623 118,065 113,040 117,947 Return on average assets 0.35% 0.25% 0.48% 0.99% Return on average equity 4.14% 3.20% 5.64% 12.24% Fourth Fourth Quarter Quarter CHARGEOFFS ($000) 03 02 YTD 03 YTD 02 Loan chargeoffs (90) (89) (146) (226) Recoveries 32 51 475 358 Net loan charge- offs(recoveries) 58 38 (329) (132) ASSET QUALITY ($000) 12/31/03 12/31/02 Nonaccrual loans 2,550 1,348 Renegotiated loans 194 210 Other real estate owned 1,500 1,500 Total nonperforming assets 4,050 2,848 SUPPLEMENTAL DATA 12/31/03 12/31/02 Loans serviced f/others ($000) 419,386 322,085 FTE employees 394 402 Number of full service offices 27 34 Number of subsidiaries 2 2 Number of ATM's 35 42 CONTACT: CCBT Financial Companies, Inc. Phillip W. Wong, 508-760-8306