Record Quarterly Net Income at Banknorth

first_imgBanknorth Group, Inc. (NYSE: BNK) today announced record quarterly net income of $87.5 million for the second quarter ended June 30, 2003, an increase of 15% over net income of $76.2 million for the second quarter of 2002. On a diluted earnings per share basis, the Company earned 53 cents for the second quarter, up 4% from 51 cents for the same quarter a year ago. Exclusive of merger and consolidation charges, earnings for the second quarter ended June 30, 2003 were $88.5 million, or 54 cents per diluted share, as compared to $76.9 million, or 52 cents per diluted share, for the second quarter of 2002.For the first six months of 2003, the Company’s net income was $168.9 million, up 17% over $144.6 million in the first half of 2002. On a diluted earnings per share basis, the Company earned $1.04 for the first half of 2003, up 8% over $0.96 for the same period a year ago. Exclusive of merger and consolidation charges, earnings for the first half of 2003 were $172.8 million, or $1.07 per diluted share, as compared to $150.7 million, or $1.00 per diluted share for the first six months of 2002.“I am pleased that strong net interest income and fee income supported by sound expense management have resulted in a record quarter,” said William J. Ryan, Banknorth Chairman, President and Chief Executive Officer. “We also enhanced shareholder value by actively repurchasing our shares in the second quarter to maximize the balance sheet deleveraging strategy that strengthened our net interest margin.”Banknorth’s net interest margin was 3.71% for the quarter ended June 30, 2003, up from 3.66% in the first quarter of the year, but down from 4.18% from the same quarter a year ago as a result of a lower interest rate environment.The increase in Banknorth’s net interest margin during the second quarter of 2003, as compared to the first quarter of 2003, was primarily attributable to a deleveraging strategy which resulted in the sale of $901 million of investment securities with an approximate weighted average yield of 5.05% and prepayment of $853 million of borrowings with a weighted average rate of 4.49% during the second quarter of 2003. The $29.2 million gain from the sale of these securities was substantially offset by the $28.5 million prepayment penalty incurred on the early payoff of borrowings. In addition, the Company implemented other asset/liability management strategies in the second quarter that resulted in a $4.2 million gain from the sale of securities and a $2 million prepayment penalty incurred on the early payoff of borrowings.The Company’s deleveraging strategy also included the repurchase of 3.7 million shares of Banknorth common stock in the second quarter to further enhance the impact of this strategy on earnings per share.The Company’s loan and lease portfolio was 21% higher at June 30, 2003 than at June 30, 2002 (1% exclusive of acquisitions) and increased by 1% when compared to the balance at March 31, 2003. The overall loan growth from the second quarter of 2002 to the second quarter of 2003 was a strong offset to margin compression over the same timeframes.The Company’s non-residential loans increased 22% from June 30, 2002 to June 30, 2003 (10% exclusive of acquisitions) and 3% compared to March 31, 2003. By category:· Consumer loans and leases at June 30, 2003 increased by 27% over June 30, 2002 (9% exclusive of acquisitions) and by 1% over the March 31, 2003 balance.· Commercial business loans and leases at June 30, 2003 increased by 21% over June 30, 2002 (11% exclusive of acquisitions) and by 5% over the March 31, 2003 balance.· Commercial real estate loans at June 30, 2003 increased by 19% over June 30, 2002 (10% exclusive of acquisitions) and by 2% over the balance at March 31, 2003.Residential mortgages increased by 14% from June 30, 2002 to June 30, 2003 but declined by 26% during this period exclusive of acquisitions, primarily due to heavy refinancings in the mortgage sector. Residential mortgages declined by 6% from their balance at March 31, 2003.Noninterest income excluding net gains on sales of securities was $82.4 million for the quarter ended June 30, 2003, an increase of 32% (84% including securities gains) over the same quarter a year ago and a 9% increase (48% including securities gains) over the previous quarter. On the banking side of the Company, deposit services and merchant and electronic banking income increased by more than 15% in the second quarter of 2003 as compared to the second quarter of 2002.Investment planning services and insurance brokerage commissions grew substantially on the financial services side of the Company in the quarter ended June 30, 2003 over the same quarter a year ago. Trust and investment management services, while down in the second quarter of 2003 from the same quarter a year ago, increased over the first quarter of the year, reflecting a strengthening stock market. Fees for trust and investment management services are largely dependent on stock market performance.Exclusive of prepayment penalties on borrowings, noninterest expenses for the second quarter were up 12% (35% including prepayment penalties on borrowings) over the same quarter a year ago, primarily due to acquisitions completed in 2002 and 2003, but increased by only 2% (23% including prepayment penalties on borrowings) over the first quarter of 2003.“Although we are operating in a challenging environment for banks, we believe that the consensus street earnings estimate for the Company is in a reasonable range,” said Mr. Ryan. The consensus First Call 2003 earnings estimate for Banknorth, which excludes merger and consolidation charges, is $2.18 per diluted share.Total deposits at Banknorth on June 30, 2003 were 23% higher than at June 30, 2002, with double digit increases in all major categories, including savings accounts, noninterest bearing deposits (principally checking accounts), money market and NOW accounts and certificates of deposit. Exclusive of acquisitions, total deposits increased by 1.6% from June 30, 2002 to June 30, 2003. Excluding certificates of deposit and brokered deposits, as well as acquisitions, total deposits increased 9.4% from June 30, 2002 to June 30, 2003. Deposits at June 30, 2003 increased by 1% from their balance at March 31, 2003.The Company repurchased 3.7 million shares during the second quarter of 2003 at an average price of $23.72 per share. During the first two quarters of 2003, the Company has repurchased 4.4 million shares at an average price of $23.47 per share. The Company’s stock price closed at $25.52 on June 30, 2003.Solid asset quality remained a feature at Banknorth:· Nonperforming loans to total loans and leases at June 30, 2003 were 0.39%, down from 0.51% for the same quarter a year ago and from 0.51% for the first quarter of 2003.· Nonperforming assets to total assets at June 30, 2003 were 0.25%, down from 0.34% for the same quarter a year ago and from 0.31% for the previous quarter.· Net charge-offs to average loans for the three months ended June 30, 2003 amounted to 0.25%, virtually the same as the 0.26% ratio for the three months ended June 30, 2002 and the 0.24% ratio for the three months ended March 31, 2003.At June 30, 2003, the Company’s allowance for loan and lease losses to total loans and leases was 1.44% and its allowance for loan and lease losses to nonperforming loans was 374%.At June 30, 2003, the Company’s Tier 1 leverage capital ratio was 6.36%, its total risk based capital ratio was 11.05%, and its ratio of tangible equity to tangible assets was 5.41%. Banknorth and its banking subsidiary, Banknorth, N.A., each continues to be a “well capitalized” institution under applicable laws and regulations.last_img read more

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Rose Lavelle injury update: USWNT midfielder (hamstring) says she’ll be fine for World Cup final

first_img Alex Morgan on potential White House visit for USWNT: I think you know the answer Rose Lavelle on her hamstring injury: “I’m good, I’m ready to go.” #FIFAWWC— Seth Vertelney (@svertelney) July 5, 2019It makes sense that she would be paranoid as she missed nearly a year after suffering a hamstring injury in 2017. She described her initial injury as three muscle tears, and faced several setbacks as she worked toward making a return in 2018. In Tuesday’s semifinal against England, Lavelle fell to the ground and immediately grabbed her hamstring before she was subbed out by Samantha Mewis in the 65th minute. Lavelle could be seen telling the team’s medical staff, “It’s my hamstring.”  Related News U.S. women’s national team midfielder Rose Lavelle said Friday she will be “ready to go” for the 2019 FIFA Women’s World Cup final on Sunday, despite suffering a hamstring injury in the second half of the semifinals. “I’m good,” Lavelle told reporters Friday (via USA Today). “It’s something I’m always paranoid about, but I’ll be fine.” Women’s World Cup 2019: USWNT jerseys setting sales records She explained Friday that she was removed from the game for precautionary reasons. “I just didn’t want to be a liability on the field because I do know that with muscles, anything can happen,” Lavelle said. “It was a little bit more precautionary.” Women’s World Cup 2019: Megan Rapinoe thinks she’s ‘extremely American’ In her first World Cup tournament, Lavelle, 24, has proved to be one of the most dependable and effective players for the Americans. She’s scored two goals in five matches as she’s helped the U.S. reach the [email protected] is already having herself a game 👏#ENGvsUSA #FIFAWWC19 pic.twitter.com/RPSMia2d0d— Just Women’s Sports (@justwsports) July 2, 2019The U.S. has a chance to make history Sunday when it faces Netherlands at 11 a.m. ET in the final as it could clinch its fourth World Cup. “Netherlands is a great team and they are at the top of their game right now,” Lavelle said. “We don’t take them lightly at all. I think it’s going to be tooth-and-nail, a close game.”last_img read more

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