-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VTlWTBf92iU8h1/HYphHQe0zAvG7JpDAANm/mZDTwj01DucoDE48AwNmLuqEvt6+ PayyZZLWexmj/m5Twyvaig== 0000950133-02-000188.txt : 20020413 0000950133-02-000188.hdr.sgml : 20020413 ACCESSION NUMBER: 0000950133-02-000188 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020122 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020122 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BANKNORTH GROUP INC/ME CENTRAL INDEX KEY: 0000829750 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 010437984 STATE OF INCORPORATION: ME FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-16947 FILM NUMBER: 02514155 BUSINESS ADDRESS: STREET 1: ONE PORTLAND SQ STREET 2: P O BOX 9540 CITY: PORTLAND STATE: ME ZIP: 04112 BUSINESS PHONE: 2077618500 MAIL ADDRESS: STREET 1: P O BOX 9540 CITY: PORTLAND STATE: ME ZIP: 04112-9540 FORMER COMPANY: FORMER CONFORMED NAME: PEOPLES HERITAGE FINANCIAL GROUP INC DATE OF NAME CHANGE: 19920703 8-K 1 w56818e8-k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 January 22, 2002 - -------------------------------------------------------------------------------- (Date of earliest event reported) Banknorth Group, Inc. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Maine 0-16947 01-0437984 - -------------------------------------------------------------------------------------------------- (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.)
P.O. Box 9540, One Portland Square, Portland, Maine 04112-9540 - ---------------------------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code)
(207) 761-8500 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) Not Applicable - -------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) ITEM 5. OTHER EVENTS On January 22, 2002, Banknorth Group, Inc. issued the press release included as Exhibit 99 to this Current Report on Form 8-K, which is incorporated herein by reference. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (a) Not applicable. (b) Not applicable. (c) The following exhibits are included with this Report: Exhibit 99 Press Release, dated January 22, 2002 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. BANKNORTH GROUP, INC. By: /s/ Peter J. Verrill --------------------------------------------- Name: Peter J. Verrill Title: Executive Vice President, Chief Financial Officer and Treasurer Date: January 22, 2002 3 EX-99 3 w56818ex99.txt PRESS RELEASE EXHIBIT 99 [BANKNORTH GROUP, INC. LOGO] PRESS RELEASE Banknorth Group, Inc. Two Portland Square P.O. Box 9540 Portland, ME 04112-9540 tel: 207-761-8500 RECORD EARNINGS AT BANKNORTH IN 2001 (Earnings conference call at 11 a.m. today, January 22, 2002. Dial in number for U.S. and Canada is toll free at 877 585-2566, Conference ID is 2833658. International Dial in number is 706 679-7449, same Conference ID. Replay available two hours after the call through January 29, 2002. U.S. and Canada dial-in is 800 642-1687, International replay number is 706 645-9291. Enter the conference ID for the live call. Live webcast and webcast replay also available at www.banknorth.com, Investor Relations.) Portland, Maine, January 22, 2002 - Banknorth Group, Inc. (NASDAQ: BKNG) today announced record operating and net income for 2001. Operating income, which is exclusive of special charges and extraordinary items, for the year ended December 31, 2001 was $247.9 million, or $1.75 per diluted share, up 8 percent on a per diluted share basis from operating earnings in 2000. Net income for 2001 of $238.8 million, or $1.68 per diluted share, was up 27 percent from 2000 net income on a per diluted share basis. Operating income for the quarter ended December 31, 2001 was also at a record level of $66.8 million, or 45 cents per diluted share, up 5 percent per diluted share from the same quarter a year ago. Net income was $61.6 million, or 42 cents per diluted share, for the fourth quarter of 2001, down slightly from the fourth quarter a year ago, largely because of a $3.9 million post-tax prepayment penalty on the early payoff of borrowings that is anticipated to enhance earnings in future years. Asset quality remained strong at Banknorth in the face of an economic slowdown in the country and its market regions. Nonperforming loans as a percentage of total loans at December 31, 2001 edged up only slightly to 0.59% as compared to 0.57% at December 31, 2000. Similarly, nonperforming assets as a percentage of total assets at December 31, 2001 were 0.38% as compared to 0.37% at December 31, 2000. As compared to the previous quarter, nonperforming loans as a percentage of total loans remained the same and nonperforming assets as a percentage of total assets improved slightly. The Company's allowance for loan losses to total loans increased to 1.49% at December 31, 2001, up from 1.42% at December 31, 2000 and from 1.45% at September 30, 2001, reflecting increased provisions for loan losses in response to the current economic downturn. "Our asset quality continues to be strong and our loans and deposits increased with the completion of the acquisitions of Andover Bancorp and MetroWest Bank in Massachusetts during the fourth quarter of 2001," said William J. Ryan, Chairman, President and Chief Executive Officer. "This speaks well of our ability to increase loans and deposits while maintaining strong asset quality both internally and through sound acquisitions." Primarily as a result of the acquisitions of Andover Bancorp and MetroWest Bank on October 31, 2001, Banknorth Group total assets increased to $21.1 billion at year-end. Operational integration of the Andover Bancorp's banking subsidiaries and MetroWest will be completed during the first quarter of 2002. The Company also consolidated all of its affiliate banks into a single national bank, Banknorth N.A., on January 1, 2002. Commercial loans, including commercial real estate loans, were 25 percent higher at December 31, 2001 than at December 31 2000 and consumer loans, including home mortgages, were 10 percent higher at December 31, 2001 than December 31, 2000. The Company's net interest income in 2001 was $680.0 million, 13 percent higher than net interest income of $603.6 million in 2000. For the fourth quarter ended December 31, 2001, net interest income was $188.5 million, 24 percent higher than net interest income of $151.6 million for the same quarter a year ago. Total deposits were 17 percent higher at December 31, 2001 than at December 31, 2000. Money market and NOW accounts increased by 29 percent in 2001 and noninterest bearing deposits, principally checking accounts, grew by 23 percent. Noninterest income, principally fee income, increased by 14 percent in 2001, led by 53 percent growth in insurance commissions from the Company's insurance subsidiary, Banknorth Insurance Group, 18 percent growth in investment advisory services income through its investment planning subsidiary, Bancnorth Investment Planning Group, and 11 percent growth in merchant and electronic banking income. Noninterest expenses, exclusive of special charges primarily related to acquisitions in both years, increased by 9 percent in 2001. Net charge-offs increased to $13.4 million in the fourth quarter of 2001 from $10 million in the fourth quarter a year ago but nearly 70% of the difference was attributable to charge-offs related to a leasing portfolio at Andover Bank. The Company repurchased approximately 1.6 million shares during the fourth quarter ended December 31, 2001, bringing total repurchased shares during 2001 to approximately 7.3 million. Since the end of the year, the Company has repurchased about 825,000 additional shares to a combined total of approximately 8.1 million repurchased shares of a 13 million share authorization resulting from two votes of its Board of Directors in 2001. Operating cash return on average equity for 2001 was 21.73%. Operating cash return on average assets for the year was 1.45%. The Company's net interest margin for 2001 was 3.99%, reflecting a change in calculation methodology to record distributions on the Company's trust preferred securities as interest expense, as compared to 3.60% in 2000. Under the new methodology, the Company's net interest margin for the quarter ended December 31, 2001 was 4.13% as compared to 3.64% for the same quarter a year ago. Shareholders' equity at December 31, 2001 was $1.79 billion, up 34 percent from $1.33 billion at December 31, 2000. Book value per share at December 31, 2001 was $11.83, as compared to $9.42 at year-end 2000. The Company's total of 308 branches at year-end reflected the acquisitions of Andover Bancorp and MetroWest, which had a total of 33 branches, as well as the closings and consolidations of 10 branches during 2001. Banknorth Group, Inc. is a $21.1 billion banking and financial services company. Its banking subsidiary, Banknorth NA, conducts banking operations through the following divisions: Peoples Heritage Bank in Maine, Bank of New Hampshire, Banknorth Massachusetts, Banknorth Vermont, Banknorth Connecticut, and Evergreen Bank in upstate New York. The Company and Bank also operate subsidiaries and divisions in money management (Banknorth Investment Management Group), investment services, insurance, mortgage banking (Banknorth Mortgage Group), leasing (Banknorth Leasing), government banking, merchant services and other financial services. BANKNORTH GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED)
December 31, % (In thousands) 2001 2000 Change Cash and due from banks $ 650,588 $ 515,934 26% Federal funds sold and other short-term investments 270,623 29,058 831% Securities available for sale 5,817,238 5,425,111 7% Securities held to maturity 339,623 455,547 -25% Loans and leases held for sale 117,674 51,131 130% Loans and leases: Residential real estate mortgages 2,627,125 2,248,714 17% Commercial real estate mortgages 4,094,039 2,955,163 39% Commercial business loans and leases 2,462,653 2,308,904 7% Consumer loans and leases 3,531,513 3,332,881 6% Total loans and leases 12,715,330 10,845,662 17% Less: Allowance for loan and lease losses 189,837 153,550 24% Loans and leases, net 12,525,493 10,692,112 17% Premises and equipment 237,440 201,192 18% Goodwill and other intangible assets 466,633 185,520 152% Mortgage servicing rights 8,484 23,225 -63% Bank owned life insurance 321,113 306,411 5% Other assets 321,677 348,569 -8% $ 21,076,586 $ 18,233,810 16% LIABILITIES & SHAREHOLDERS' EQUITY Deposits: Regular savings $ 1,604,556 $ 1,386,286 16% Retail money market and NOW accounts 5,129,626 3,975,318 29% Retail certificates of deposit 4,812,347 4,461,983 8% Brokered deposits 71,181 169,069 -58% Noninterest bearing deposits 2,603,339 2,114,600 23% Total deposits 14,221,049 12,107,256 17% Borrowings from the Federal Home Loan Bank 2,644,105 3,348,242 -21% Federal funds purchased and securities sold under repurchase agreements 1,620,555 1,138,629 42% Subordinated debt 200,000 - NM Other borrowings 43,972 73,744 -40% Company obligated, mandatorily redeemable securities of subsidiary trusts holding solely parent junior subordinated debentures 93,756 98,775 -5% Other liabilities 464,034 136,307 240% Total liabilities 19,287,471 16,902,953 14% Shareholders' equity 1,789,115 1,330,857 34% $ 21,076,586 $ 18,233,810 16%
BANKNORTH GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
(In thousands, except per share data) Twelve Months Ended December 31, % 2001 2000 Change Interest and dividend income $1,263,789 $ 1,330,287 -5% Interest expense 583,825 726,663 -20% Net interest income 679,964 603,624 13% Provision for loan and lease losses 41,889 23,819 76% Net interest income after provision for loan and lease losses 638,075 579,805 10% Noninterest income: Deposit services 72,634 67,053 8% Mortgage banking services 11,130 21,963 -49% Trust Income 34,060 35,436 -4% Investment advisory services 8,286 6,998 18% Insurance commissions 39,360 25,748 53% Bank owned life insurance 18,392 17,701 4% Merchant and electronic banking income, net 32,411 29,318 11% Net gains(losses) on sales of securities 1,329 439 NM Losses on securities restructuring -- (15,895) NM Other noninterest income 22,903 22,427 2% 240,505 211,188 14% Noninterest expense: Salaries and employee benefits 261,317 230,184 14% Data processing 38,670 37,607 3% Occupancy and equipment expense 80,493 70,938 13% Amortization of goodwill & deposit premiums 22,084 21,016 5% Special charges (1) 7,614 43,007 -82% Other noninterest expense 99,218 99,714 0% 509,396 502,466 1% Income before income tax expense 369,184 288,527 28% Income tax expense 126,202 96,793 30% Net income before extraordinary item and cumulative effect of change in accounting principle 242,982 191,734 27% Extraordinary item, net of tax (2) (3,897) -- NM Cumulative effect of change in accounting principle, net of tax (3) (290) -- NM Net Income $ 238,795 $ 191,734 25% Weighted average shares outstanding: Basic 140,473 144,270 -3% Diluted 141,802 145,194 -2% Earnings per share: Basic $ 1.70 $ 1.33 28% Diluted $ 1.68 $ 1.32 27% Operating Financial Data Operating non-interest expense (4) $ 501,782 $ 459,459 9% Operating net income (5) $ 247,927 $ 234,686 6% Basic operating earnings per share (5) $ 1.76 $ 1.63 8% Diluted operating earnings per share (5) $ 1.75 $ 1.62 8%
Three Months Ended December 31, % 2001 2000 Change Interest and dividend income $ 314,484 $ 337,281 -7% Interest expense 126,008 185,668 -32% Net interest income 188,476 151,613 24% Provision for loan and lease losses 13,378 6,651 101% Net interest income after provision for loan and lease losses 175,098 144,962 21% Noninterest income: Deposit services 19,520 17,777 10% Mortgage banking services 3,937 7,151 -45% Trust Income 8,089 9,397 -14% Investment advisory services 2,959 1,883 57% Insurance commissions 9,989 9,745 3% Bank owned life insurance 4,425 4,220 5% Merchant and electronic banking income, net 8,754 7,153 22% Net gains(losses) on sales of securities 39 437 NM Losses on securities restructuring -- -- NM Other noninterest income 5,887 6,304 -7% 63,599 64,067 -1% Noninterest expense: Salaries and employee benefits 69,619 59,723 17% Data processing 11,023 10,547 5% Occupancy and equipment expense 21,102 17,043 24% Amortization of goodwill & deposit premiums 5,884 5,346 10% Special charges (1) 2,007 (15) NM Other noninterest expense 28,406 24,467 16% 138,041 117,111 18% Income before income tax expense 100,656 91,918 10% Income tax expense 35,152 29,554 19% Net income before extraordinary item and cumulative effect of change in accounting principle 65,504 62,364 5% Extraordinary item, net of tax (2) (3,897) -- NM Cumulative effect of change in accounting principle, net of tax (3) -- -- NM Net Income $ 61,607 $ 62,364 -1% Weighted average shares outstanding: Basic 146,208 143,488 2% Diluted 147,694 144,581 2% Earnings per share: Basic $ 0.42 $ 0.43 -2% Diluted $ 0.42 $ 0.43 -2% Operating Financial Data Operating non-interest expense (4) $ 136,034 $ 117,126 16% Operating net income (5) $ 66,798 $ 62,326 7% $ Basic operating earnings per share (5) $ 0.46 $ 0.43 7% Diluted operating earnings per share (5) $ 0.45 $ 0.43 5%
(1) Special charges consist of merger charges, asset write-downs, charter consolidation costs, and branch closing costs. (2) Pre-payment penalty on early extinguishment of long-term borrowings. (3) Derivatives and hedging activities (FAS 133) (4) Excludes pre-tax special charges. (5) Excludes the post-tax effect of the following: loss on securities restructuring, special charges, cumulative effect of change in accounting principle, and extraordinary item. NM - calculated % change is not meaningful
BANKNORTH GROUP, INC. AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) (In thousands, except per share data) TWELVE MONTHS ENDED THREE MONTHS ENDED DECEMBER 31, DECEMBER 31, 2001 2000 2001 2000 Net interest income $ 679,964 $ 603,624 $ 188,476 $ 151,613 Net income $ 238,795 $ 191,734 $ 61,607 $ 62,364 Operating net income (1) $ 247,927 $ 234,686 $ 66,798 $ 62,326 Shares outstanding (end of period) 151,221 141,245 151,221 141,245 Weighted average shares outstanding: Basic 140,473 144,270 146,208 143,488 Diluted 141,802 145,194 147,694 144,581 Earnings per share: Basic $ 1.70 $ 1.33 $ 0.42 $ 0.43 Diluted $ 1.68 $ 1.32 $ 0.42 $ 0.43 Operating earnings per share (1): Basic $ 1.76 $ 1.63 $ 0.46 $ 0.43 Diluted $ 1.75 $ 1.62 $ 0.45 $ 0.43 Operating cash earnings per share (2): Basic $ 1.90 $ 1.75 $ 0.49 $ 0.47 Diluted $ 1.88 $ 1.74 $ 0.49 $ 0.46 Shareholders' equity $1,789,115 $1,330,857 $1,789,115 $1,330,857 Book value per share $ 11.83 $ 9.42 $ 11.83 $ 9.42 Tangible book value per share $ 8.75 $ 8.11 $ 8.75 $ 8.11 RATIOS: Net interest margin (net interest income as a % of average earning assets) (3) 3.99% 3.60% 4.13% 3.64% Net interest spread (yield on earning assets minus yield on interest-bearing liabilities) (3) 3.42% 3.05% 3.66% 3.03% Return on average assets 1.29% 1.05% 1.23% 1.36% Operating return on average assets (1) 1.34% 1.28% 1.33% 1.35% Operating cash return on average assets (2) 1.45% 1.39% 1.46% 1.47% Return on average equity 16.48% 15.69% 14.45% 19.16% Operating return on average equity (1) 17.11% 19.20% 15.67% 19.15% Operating cash return on average equity (2) 21.73% 24.22% 21.35% 24.02% Tier 1 leverage capital ratio at end of period 7.14% 7.02% 7.14% 7.02% Tier 1 risk based capital ratio (estimated) 9.56% 10.56% 9.56% 10.56% Total risk based capital ratio (estimated) 12.19% 11.81% 12.19% 11.81% Noninterest income as a percent of total income (4) 26.02% 27.30% 25.22% 29.56% Efficiency ratio (5) 54.59% 55.34% 53.97% 54.42% Cash efficiency ratio (6) 52.19% 52.81% 51.64% 51.93% Non-performing loans $ 75,246 $ 61,634 $ 75,246 $ 61,634 Total non-performing assets $ 79,123 $ 67,132 $ 79,123 $ 67,132 Non-performing loans as a % of total loans 0.59% 0.57% 0.59% 0.57% Non-performing assets as a % of total assets 0.38% 0.37% 0.38% 0.37% Full service banking offices 308 285 308 285
(1) Excludes special charges, loss on securities restructuring and cumulative effect of change in accounting principle and extraorinary item. (2) Equals operating earnings plus the amortization of goodwill and core deposit intangibles. (3) Adjusted to fully taxable equivalent basis. (4) Excludes securities gains/(losses) and losses on securities restructuring. (5) Excludes net gains on sales of securities, losses on securities restructuring, and special charges. (6) Excludes net gains on sales of securities, losses on securities restructuring, special charges and goodwill amortization. BANKNORTH GROUP, INC. AND SUBSIDIARIES CONSOLIDATED AVERAGE BALANCE SHEETS (UNAUDITED)
THREE MONTHS ENDED DECEMBER 31, 2001 2000 AVERAGE YIELD/ AVERAGE YIELD/ (Dollars in Thousands) BALANCE RATE BALANCE RATE ASSETS Loans and leases (1) Residential real estate mortgages $ 2,568,103 7.36% $ 2,304,500 7.52% Commercial real estate mortgages 3,737,282 7.52% 2,947,644 8.97% Commercial loans and leases 2,379,623 6.72% 2,263,301 9.29% Consumer loans and leases 3,508,370 7.73% 3,305,341 8.82% 12,193,378 7.39% 10,820,786 8.68% Securities 6,127,076 5.80% 6,065,801 6.77% Federal funds sold & other short-term investments 52,108 2.01% 33,591 4.28% Total earning assets 18,372,562 6.85% 16,920,178 7.99% Noninterest-earning assets 1,516,800 1,379,668 Total assets $ 19,889,362 $ 18,299,846 LIABILITIES & SHAREHOLDERS' EQUITY Interest-bearing deposits: Regular savings $ 1,543,616 1.05% $ 1,416,785 1.66% Retail money market and NOW accounts 4,826,227 1.88% 3,933,748 3.54% Retail certificates of deposit 4,664,683 4.18% 4,522,791 5.74% Brokered deposits 110,772 4.21% 120,020 6.72% Total interest-bearing deposits 11,145,298 2.75% 9,993,344 4.31% Borrowed funds 4,495,463 4.27% 4,819,177 6.31% Total interest-bearing liabilities 15,640,761 3.19% 14,812,521 4.96% Noninterest bearing deposits 2,387,677 2,046,837 Other liabilities 169,235 145,722 Shareholders' equity 1,691,689 1,294,766 Total liabilities and shareholders' equity $ 19,889,362 $ 18,299,846 Net earning assets $ 2,731,801 $ 2,107,657 Net interest income (fully taxable equivalent) $ 189,997 $ 153,383 Less: fully taxable equivalent adjustments (1,521) (1,770) Net interest income $ 188,476 $ 151,613 Net interest rate spread (fully taxable equivalent) 3.66% 3.03% Net interest margin (fully taxable equivalent) 4.13% 3.64%
(1) Loans and leases include portfolio loans and leases, loans held for sale and nonperforming loans. BANKNORTH GROUP, INC. AND SUBSIDIARIES CONSOLIDATED AVERAGE BALANCE SHEETS (UNAUDITED)
TWELVE MONTHS ENDED DECEMBER 31, 2001 2000 AVERAGE YIELD/ AVERAGE YIELD/ (Dollars in Thousands) BALANCE RATE BALANCE RATE ASSETS Loans and leases (1) Residential real estate mortgages $ 2,290,968 7.42% $ 2,325,791 7.50% Commercial real estate mortgages 3,216,865 8.25% 2,863,464 8.92% Commercial loans and leases 2,342,009 7.72% 2,136,255 9.13% Consumer loans and leases 3,396,165 8.25% 3,159,779 8.66% 11,246,007 7.97% 10,485,289 8.57% Securities 5,924,001 6.29% 6,405,415 6.78% Federal funds sold & other short-term investments 34,620 3.37% 63,901 5.75% Total earning assets 17,204,628 7.38% 16,954,605 7.88% Noninterest-earning assets 1,341,081 1,388,621 Total assets $ 18,545,709 $ 18,343,226 LIABILITIES & SHAREHOLDERS' EQUITY Interest-bearing deposits: Regular savings $ 1,439,551 1.31% $ 1,498,196 1.99% Retail money market and NOW accounts 4,257,428 2.58% 3,811,129 3.38% Retail certificates of deposit 4,512,284 5.02% 4,521,217 5.42% Brokered deposits 151,980 5.67% 118,791 6.40% Total interest-bearing deposits 10,361,243 3.51% 9,949,333 4.13% Borrowed funds 4,406,017 4.99% 5,104,043 6.18% Total interest-bearing liabilities 14,767,260 3.96% 15,053,376 4.83% Noninterest bearing deposits 2,168,387 1,942,148 Other liabilities 160,709 125,324 Shareholders' equity 1,449,353 1,222,378 Total liabilities and shareholders' equity $ 18,545,709 $ 18,343,226 Net earning assets $ 2,437,368 $ 1,901,229 Net interest income (fully taxable equivalent) $ 686,258 $ 609,684 Less: fully taxable equivalent adjustments (6,294) (6,060) Net interest income $ 679,964 $ 603,624 Net interest rate spread (fully taxable equivalent) 3.42% 3.05% Net interest margin (fully taxable equivalent) 3.99% 3.60%
(1) Loans and leases include portfolio loans and leases, loans held for sale and nonperforming loans. BANKNORTH GROUP, INC. AND SUBSIDIARIES ASSET QUALITY (UNAUDITED) (Dollars in thousands)
12/31/01 9/30/01 6/30/01 3/31/01 12/31/00 NON-PERFORMING ASSETS: Residential real estate mortgages $8,311 $8,222 $9,590 $10,575 $9,894 Commercial real estate mortgages 17,124 15,145 12,550 13,205 12,790 Commercial business loans and leases 40,341 34,220 39,208 32,233 32,621 Consumer loans and leases 9,470 6,380 5,795 5,611 6,329 Total non-performing loans 75,246 63,967 67,143 61,624 61,634 Other non-performing assets (net) 3,877 6,896 6,126 6,245 5,498 Total non-performing assets $79,123 $70,863 $73,269 $67,869 $67,132 ALLOWANCE FOR LOAN AND LEASE LOSSES $189,837 $158,534 $155,303 $153,621 $153,550 NET LOAN CHARGE-OFFS: Real estate mortgages $731 $671 $375 $652 $639 Commercial business loans and leases 6,278 3,595 3,340 2,884 4,063 Consumer loans and leases 6,342 4,564 3,914 3,530 5,266 Total net charge-offs $13,351 $8,830 $7,629 $7,066 $9,968 RATIOS: Allowance for loan and lease losses to total loans and leases 1.49% 1.45% 1.43% 1.43% 1.42% Allowance for loan and lease losses to non-performing loans 252.29% 247.84% 231.30% 249.29% 249.13% Non-performing loans to total loans and leases 0.59% 0.59% 0.62% 0.57% 0.57% Non-performing assets to total assets 0.38% 0.39% 0.40% 0.37% 0.37% Net charge-offs to average loans and leases - QTD (1) 0.44% 0.32% 0.28% 0.26% 0.37% Net charge-offs to average loans and leases - YTD (1) 0.33% 0.29% 0.27% 0.26% 0.24%
(1) Annualized CONTACT: Banknorth Group, Inc. Brian Arsenault, 207 761-8517 -----END PRIVACY-ENHANCED MESSAGE-----