-----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, TwerI8g0UbCl6XjEaCNsS14DuVao0Uov+q1LbzzoOejU29QEiVJZ8ydQj89mBF9Z CCtX5CZPfSHbYx2VDAdoMA== 0000950135-01-000158.txt : 20010125 0000950135-01-000158.hdr.sgml : 20010125 ACCESSION NUMBER: 0000950135-01-000158 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20010123 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010124 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: SEC FILE NUMBER: 000-16947 FILM NUMBER: 1514476 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 b37993bne8-k.txt FORM 8-K 1 UNITED STATES 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 23, 2001 - -------------------------------------------------------------------------------- (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, Two 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) 2 ITEM 5. OTHER EVENTS On January 23, 2001, Banknorth Group, Inc. issued the press releases included as exhibits to this Current Report on Form 8-K, which are incorporated herein by reference. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (a) Not applicable. (b) Not applicable. (c) The following exhibit is included with this Current Report on Form 8-K: Exhibit 99.1 Press release, dated January 23, 2001 Exhibit 99.2 Press release, dated January 23, 2001 2 3 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 Operating Officer, Chief Financial Officer and Treasurer Date: January 23, 2001 3 EX-99.1 2 b37993bnex99-1.txt PRESS RELEASE 1 Exhibit 99.1 FOR IMMEDIATE RELEASE For Further Information, Contact Brian Arsenault, SVP, Corporate Communications 207 761-8517 BANKNORTH BOARD APPROVES QUARTERLY DIVIDEND AUTHORIZES SHARE REPURCHASE PROGRAM Portland, Maine, January 23, 2001 -- Banknorth Group, Inc. (NASDAQ: BKNG) announced today that its Board of Directors has approved a quarterly dividend of 13 cents per share based on fourth quarter 2000 earnings announced earlier today. The Directors also authorized the repurchase of up to 8 million shares, or approximately 3 percent, of the Company's common stock. The quarterly dividend rate represents an increase of 4 percent over the dividend paid for the previous quarter. The dividend will be paid on February 12, 2001 to shareholders of record on February 2, 2001. Under the repurchase program, shares will be repurchased from time to time in open market transactions as, in the judgement of management, market conditions warrant. The Company repurchased approximately 4.6 million shares of its common stock at a weighted average price of $18.19 per share during the fourth quarter ended December 31, 2000. "We want to always work in the interest of our shareholders," said William J. Ryan, Chairman, President and Chief Executive Officer. "By maintaining a dividend payout ratio in the 30 percent range and repurchasing shares when feasible, we seek to create shareholder value." 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 2 a leasing company, Banknorth Leasing. Other subsidiaries and divisions provide services in mortgage banking, asset based lending, private banking, merchant card services and other financial services. EX-99.2 3 b37993bnex99-2.txt PRESS RELEASE 1 Exhibit 99.2 FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION, CONTACT: BRIAN ARSENAULT, SVP, CORPORATE COMMUNICATIONS 207 761-8517 SEVENTH CONSECUTIVE RECORD EARNINGS YEAR AT BANKNORTH (Earnings Conference Call at 1:30 p.m. Eastern Time, today, January 23, 2001. Dial-in 800 967-7134, confirmation code, 737162; replay for 48 hours starting at approximately 4 p.m. Eastern Time today. Replay dial-in 888 203-1112, replay passcode 737162. Live webcast also available at www.banknorth.com - go to Investor Relations button, go to Investor's Overview, look for Live Webcast.) 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. 2 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. 3 Other subsidiaries and divisions provide services in mortgage banking, asset based lending, private banking, merchant services and other financial services. 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 noninterest 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. 4
BANKNORTH GROUP, INC. AND SUBSIDIARIES - -------------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS (UNAUDITED) December 31 ------------------------------ % (In thousands) 2000 1999 Change ----------- ----------- ------ Cash and due from banks $ 515,934 $ 546,816 -6% Federal funds sold and other short-term investments 29,058 229,579 -87% Securities available for sale 5,425,111 6,316,031 -14% Securities held to maturity 455,547 557,151 -18% Loans and leases held for sale 51,131 82,318 -38% Loans and leases: Residential real estate mortgages 2,248,714 2,270,417 -1% Commercial real estate mortgages 2,955,163 2,696,317 10% Commercial business loans and leases 2,308,904 1,924,201 20% Consumer loans and leases 3,332,881 2,963,721 12% ----------- ----------- Total loans and leases 10,845,662 9,854,656 10% Less: Allowance for loan losses 153,550 155,048 -1% ----------- ----------- Loans and leases, net 10,692,112 9,699,608 10% Premises and equipment 201,192 192,540 4% Goodwill and other intangible assets 185,520 184,381 1% Mortgage servicing rights 23,225 52,724 -56% Bank owned life insurance 306,411 288,783 6% Other assets 348,569 358,333 -3% ----------- ----------- $18,233,810 $18,508,264 -1% =========== =========== - -------------------------------------------------------------------------------------------------------------------------------- LIABILITIES & SHAREHOLDERS' EQUITY Deposits: Regular savings $ 1,386,286 $ 1,567,776 -12% Retail money market and NOW accounts 3,975,318 3,698,934 7% Retail certificates of deposit 4,461,983 4,448,229 0% Brokered deposits 169,069 173,798 -3% Demand deposits 2,114,600 1,821,764 16% ----------- ----------- Total deposits 12,107,256 11,710,501 3% Borrowings from Federal Home Loan Bank 3,348,242 3,997,819 -16% Federal funds purchased and securities sold under repurchase agreements 1,138,629 1,302,821 -13% Other borrowings 73,744 66,838 10% Other liabilities 136,307 139,236 -2% ----------- ----------- Total liabilities 16,804,178 17,217,215 -2% ----------- ----------- Company obligated, mandatorily redeemable securities of subsidiary trust holding solely parent junior subordinated debentures 98,775 98,775 0% Shareholders' equity 1,330,857 1,192,274 12% ----------- ----------- $18,233,810 $18,508,264 -1% =========== ===========
5
BANKNORTH GROUP, INC. AND SUBSIDIARIES - ----------------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) Three Months Ended Year Ended December 31, December 31, (In thousands, except number of --------------------------- % ----------------------------- % shares and per share data) 2000 1999 Change 2000 1999 Change ----------- ----------- ------ --------- -------- ------ Interest and dividend income $ 1,330,287 $ 1,227,519 8% $ 337,281 $ 323,286 4% Interest expense 717,276 603,290 19% 183,321 163,424 12% ----------- ----------- ----------- ----------- Net interest income 613,011 624,229 -2% 153,960 159,862 -4% Provision for loan and lease losses 23,819 23,575 1% 6,651 6,005 11% ----------- ----------- ----------- ----------- Net interest income after provision for loan and lease losses 589,192 600,654 -2% 147,309 153,857 -4% ----------- ----------- ----------- ----------- Noninterest income: Customer services 80,987 69,197 17% 21,105 19,367 9% Mortgage banking services 21,963 20,423 8% 7,151 2,808 155% Trust Income 35,436 34,060 4% 9,397 8,685 8% Investment advisory services 6,998 6,098 15% 1,883 1,697 11% Insurance commissions 25,748 20,289 27% 9,745 6,012 62% Bank owned life insurance 17,701 15,522 14% 4,220 3,913 8% Merchant and card product income, net 15,384 13,126 17% 3,824 3,913 -2% Net gains on sales of securities 439 655 -33% 437 - NM Losses on securities restructuring (1) (15,895) - NM - - NM Other noninterest income 22,427 12,425 80% 6,305 3,515 79% ----------- ----------- ----------- ----------- 211,188 191,795 10% 64,067 49,910 28% ----------- ----------- ----------- ----------- Noninterest expense: Salaries and employee benefits 230,184 231,500 -1% 59,723 60,119 -1% Data processing 37,607 40,486 -7% 10,547 9,385 12% Occupancy and equipment expense 70,938 69,531 2% 17,043 17,591 -3% Distributions on securities of subsidiary trust 9,387 9,834 -5% 2,347 2,338 0% Amortization of goodwill & deposit premiums 21,016 20,642 2% 5,346 5,177 3% Special charges (2) 43,007 28,002 54% (15) (3,889) NM Other noninterest expense 99,714 98,147 2% 24,467 26,573 -8% ----------- ----------- ----------- ----------- 511,853 498,142 3% 119,458 117,294 2% ----------- ----------- ----------- ----------- Income before income tax expense 288,527 294,307 -2% 91,918 86,473 6% Income tax expense 96,793 97,349 -1% 29,554 27,637 7% ----------- ----------- ----------- ----------- Net income $ 191,734 $ 196,958 -3% $ 62,364 $ 58,836 6% =========== =========== =========== =========== Weighted average shares outstanding: Basic 144,270,020 145,757,788 -1% 143,488,027 144,654,679 -1% Diluted 145,194,054 147,427,667 -2% 144,581,002 146,056,390 -1% Earnings per share: Basic $ 1.33 $ 1.35 -1% $ 0.43 $ 0.41 5% Diluted $ 1.32 $ 1.34 -1% $ 0.43 $ 0.40 8% - ----------------------------------------------------------------------------------------------------------------------------------- OPERATING FINANCIAL DATA Operating non-interest expense (3) $ 468,846 $ 470,140 0% $ 119,473 $ 121,183 -1% Operating net income (4) $ 234,686 $ 217,774 8% $ 62,326 $ 56,446 10% Basic operating earnings per share (4) $ 1.63 $ 1.49 9% $ 0.43 $ 0.39 10% Diluted operating earnings per share (4) $ 1.62 $ 1.48 9% $ 0.43 $ 0.39 10% - -----------------------------------------------------------------------------------------------------------------------------------
(1) Securities losses to restructure the investment portfolio during the three months ended June 30, 2000. (2) Special charges consist of merger charges, costs to discontinue the correspondent mortgage business, asset write-downs and branch closing costs. (3) Excludes pre-tax special charges. (4) Excludes post-tax special charges and losses on restructuring the investment portfolio. NM - calculated % change is not meaningful - -------------------------------------------------------------------------------- 6
BANKNORTH GROUP, INC. AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) - ------------------------------------------------------------------------------------------------------------------------- (In thousands, except number of shares and per share data) Year Ended December 31, Three Months Ended December 31, ----------------------------- ------------------------------ 2000 1999 2000 1999 ------------ ------------ ------------ ------------ Net interest income $ 613,011 $ 624,229 $ 153,960 $ 159,862 Net income $ 191,734 $ 196,958 $ 62,364 $ 58,836 Operating net income (1) $ 234,686 $ 217,774 $ 62,326 $ 56,446 Shares outstanding (end of period) 141,244,603 144,973,898 141,244,603 144,973,898 Weighted average shares outstanding: Basic 144,270,020 145,757,788 143,488,027 144,654,679 Diluted 145,194,054 147,427,667 144,581,002 146,056,390 Earnings per share: Basic $ 1.33 $ 1.35 $ 0.43 $ 0.41 Diluted $ 1.32 $ 1.34 $ 0.43 $ 0.40 Operating earnings per share (1): Basic $ 1.63 $ 1.49 $ 0.43 $ 0.39 Diluted $ 1.62 $ 1.48 $ 0.43 $ 0.39 Operating cash earnings per share (2): Basic $ 1.77 $ 1.64 $ 0.47 $ 0.43 Diluted $ 1.76 $ 1.62 $ 0.47 $ 0.42 Shareholders' equity $ 1,330,857 $ 1,192,274 $ 1,330,857 $ 1,192,274 Book value per share $ 9.42 $ 8.22 $ 9.42 $ 8.22 Tangible book value per share $ 8.11 $ 6.95 $ 8.11 $ 6.95 - ------------------------------------------------------------------------------------------------------------------------- Ratios: Net interest margin (net interest income as a % of average earning assets) (3) 3.65% 3.86% 3.70% 3.78% Net interest spread (yield on earning assets minus yield on interest-bearing liabilities) (3) 3.08% 3.37% 3.06% 3.30% Return on average assets 1.05% 1.12% 1.36% 1.27% Operating return on average assets (1) 1.28% 1.24% 1.35% 1.22% Operating cash return on average assets (2) 1.41% 1.37% 1.49% 1.35% Return on average equity 15.69% 16.42% 19.16% 19.64% Operating return on average equity (1) 19.20% 18.16% 19.15% 18.84% Operating cash return on average equity (2) 24.55% 23.66% 24.34% 24.36% Tier 1 leverage capital ratio at end of period 7.03% 6.75% 7.03% 6.75% Efficiency ratio (4) 54.72% 56.45% 53.83% 56.65% Non-performing loans $ 61,634 $ 58,127 $ 61,634 $ 58,127 Total non-performing assets $ 67,132 $ 69,192 $ 67,132 $ 69,192 Non-performing loans as a % of total loans 0.57% 0.59% 0.57% 0.59% Non-performing assets as a % of total assets 0.37% 0.37% 0.37% 0.37% Full service banking offices 285 321 285 321 - ------------------------------------------------------------------------------------------------------------------------- (1) Excludes special charges and losses on restructuring the investment portfolio. (2) Earnings before special charges and amortization of goodwill and core deposit premiums. (3) Adjusted to fully taxable equivalent basis. (4) Excludes distributions on securities of subsidiary trust, net gains on sales of securities and special charges. - -------------------------------------------------------------------------------------------------------------------------
7
BANKNORTH GROUP, INC. AND SUBSIDIARIES - ---------------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED AVERAGE BALANCE SHEETS (UNAUDITED) THREE MONTHS ENDED DECEMBER 31, - ---------------------------------------------------------------------------------------------------------------------------------- 2000 1999 - ---------------------------------------------------------------------------------------------------------------------------------- AVERAGE YIELD/ AVERAGE YIELD/ (Dollars in Thousands) BALANCE RATE BALANCE RATE - ---------------------------------------------------------------------------------------------------------------------------------- ASSETS Loans and leases (1) Residential real estate mortgages $ 2,304,500 7.52% $ 2,356,697 7.33% Commercial real estate mortgages 2,947,644 8.97% 2,695,579 8.94% Commercial loans and leases 2,263,301 9.29% 1,865,582 8.71% Consumer loans and leases 3,305,342 8.82% 2,908,574 8.59% ----------- ----------- 10,820,787 8.68% 9,826,432 8.39% Securities 6,065,801 6.77% 7,030,811 6.58% Federal funds sold & other short-term investments 33,591 4.28% 80,898 5.92% ----------- ----------- Total earning assets 16,920,179 7.99% 16,938,141 7.61% Noninterest-earning assets 1,379,667 1,362,000 ----------- ----------- Total assets $18,299,846 $18,300,141 =========== =========== LIABILITIES & SHAREHOLDERS' EQUITY Interest-bearing deposits: Regular savings $ 1,416,785 1.66% $ 1,604,451 2.08% Retail money market and NOW accounts 3,933,748 3.54% 3,644,631 2.87% Retail certificates of deposit 4,522,791 5.74% 4,511,629 4.93% Brokered deposits 120,020 6.72% 143,328 5.71% ----------- ----------- Total interest-bearing deposits 9,993,344 4.31% 9,904,039 3.72% Borrowed funds 4,720,402 6.24% 5,142,011 5.44% ----------- ----------- Total interest-bearing liabilities 14,713,746 4.93% 15,046,050 4.31% Demand accounts 2,046,837 1,861,423 Other liabilities 145,722 105,295 Minority interest 98,775 98,775 Shareholders' equity 1,294,766 1,188,598 ----------- ----------- Total liabilities, minority interest and shareholders' equity $18,299,846 $18,300,141 =========== =========== Net earning assets $ 2,206,433 $ 1,892,091 =========== =========== Net interest income (fully taxable equivalent) $ 155,730 $ 161,291 Less: fully taxable equivalent adjustments (1,770) (1,430) ----------- ----------- Net interest income $ 153,960 $ 159,861 =========== =========== Net interest rate spread (fully taxable equivalent) 3.06% 3.30% Net interest margin (fully taxable equivalent) 3.70% 3.78% - ----------------------------------------------------------------------------------------------------------------------------------
(1) Loans and leases include portfolio loans and leases, loans held for sale and nonperforming loans. 8
BANKNORTH GROUP, INC. AND SUBSIDIARIES - ----------------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED AVERAGE BALANCE SHEETS (UNAUDITED) YEAR ENDED DECEMBER 31, - ----------------------------------------------------------------------------------------------------------------------------------- 2000 1999 - ----------------------------------------------------------------------------------------------------------------------------------- AVERAGE YIELD/ AVERAGE YIELD/ (Dollars in Thousands) BALANCE RATE BALANCE RATE - ----------------------------------------------------------------------------------------------------------------------------------- Assets Loans and leases (1) Residential real estate mortgages $ 2,325,791 7.50% $ 2,756,660 7.42% Commercial real estate mortgages 2,863,464 8.92% 2,570,575 8.86% Commercial loans and leases 2,136,255 9.13% 1,792,368 8.79% Consumer loans and leases 3,159,779 8.66% 2,788,574 8.61% ----------- ----------- 10,485,289 8.57% 9,908,177 8.38% Securities 6,405,415 6.78% 6,259,436 6.32% Federal funds sold & other short-term investments 63,901 5.75% 147,620 4.85% ----------- ----------- Total earning assets 16,954,605 7.88% 16,315,233 7.56% Noninterest-earning assets 1,388,621 1,292,111 ----------- ----------- Total assets $18,343,226 $17,607,344 =========== =========== LIABILITIES & SHAREHOLDERS' EQUITY Interest-bearing deposits: Regular savings $ 1,498,196 1.99% $ 1,608,461 2.12% Retail money market and NOW accounts 3,811,129 3.38% 3,570,703 2.78% Retail certificates of deposit 4,521,217 5.42% 4,617,521 5.02% Brokered deposits 118,791 6.40% 179,760 5.37% ----------- ----------- Total interest-bearing deposits 9,949,333 4.13% 9,976,445 3.74% Borrowed funds 5,005,268 6.11% 4,408,944 5.21% ----------- ----------- Total interest-bearing liabilities 14,954,601 4.80% 14,385,389 4.19% Demand accounts 1,942,148 1,807,658 Other liabilities 125,324 111,723 Minority interest 98,775 103,078 Shareholders' equity 1,222,378 1,199,496 ----------- ----------- Total liabilities, minority interest and shareholders' equity $18,343,226 $17,607,344 =========== =========== Net earning assets $ 2,000,004 $ 1,929,844 =========== =========== Net interest income (fully taxable equivalent) $ 619,073 $ 629,363 Less: fully taxable equivalent adjustments (6,062) (5,134) ----------- ----------- Net interest income $ 613,011 $ 624,229 =========== =========== Net interest rate spread (fully taxable equivalent) 3.08% 3.37% 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. 9
BANKNORTH GROUP, INC. AND SUBSIDIARIES ASSET QUALITY (UNAUDITED) (Dollars in thousands) - ---------------------------------------------------------------------------------------------------------- December 31, 2000 1999 ---------- --------- ALLOWANCE FOR LOAN LOSSES $153,550 $155,048 NON-PERFORMING ASSETS: Residential real estate mortgages $ 9,894 $ 17,311 Commercial real estate mortgages 12,790 17,756 Commercial business loans and leases 32,622 17,109 Consumer loans and leases 6,328 5,951 ---------- --------- Total non-performing loans 61,634 58,127 Other non-performing assets (net) 5,498 11,065 ---------- --------- Total non-performing assets $ 67,132 $69,192 ========== ========= Allowance for loan losses to total loans 1.42% 1.57% Allowance for loan losses to non-performing loans 249.13% 266.74% Non-performing loans to total loans 0.57% 0.59% Non-performing assets to total assets 0.37% 0.37% - ---------------------------------------------------------------------------------------------------------- Year Ended December 31, Quarter Ended December 31, 2000 1999 2000 1999 ------- ------- ------ ------- NET CHARGE-OFFS: Real estate mortgages $ 2,916 $ 5,545 $ 639 $2,397 Commercial business loans and leases 5,456 1,937 4,063 1,349 Consumer loans and leases 16,945 16,143 5,266 4,164 ------- ------- ------ ------ Total net charge-offs $25,317 $23,625 $9,968 $7,910 ======= ======= ====== ====== Net charge-offs to average loans (1) 0.24% 0.24% 0.37% 0.32% - ----------------------------------------------------------------------------------------------------------
(1) Quarter ended ratios calculated on an annualized basis. -----END PRIVACY-ENHANCED MESSAGE-----