TD Banknorth Reports Fourth Quarter and 2005 Year End Results.

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TD Banknorth Reports Fourth Quarter and 2005 Year End Results.

PORTLAND, Maine -- TD Banknorth Inc. (NYSE: BNK)

(Fourth Quarter Earnings Conference Call at 10:30 a.m. Eastern Time today, January 23, 2006. Dial-in number for USA and Canada is 800-561-2718. International dial-in number is 617-614-3525. Passcode for both numbers is 42132230. Replay number for USA and Canada is 888-286-8010. International replay dial-in number is 617-801-6888. Replay passcode for both is 13680731. Live webcast and webcast replay available at www.tdbanknorth.com, Investor Relations.) Highlights for the quarter and year include:

--On a per diluted share basis, earnings, excluding the amortization of identifiable intangible assets, merger and consolidation costs and costs associated with the Company's balance sheet restructuring program, were up 5% in the fourth quarter of 2005 as compared to the fourth quarter of 2004.

--Average loans and leases increased by 9% during the fourth quarter of 2005 as compared to the fourth quarter of 2004.

--Net interest income was up 8% for the year.

--Asset quality remained strong - the percentage of nonperforming loans to total loans was 0.30% at December 31, 2005.

TD Banknorth Inc. ("TD Banknorth" or the "Company") (NYSE: BNK) today announced net income of $55.6 million for the fourth quarter ended December 31, 2005 as compared to net income of $20.7 million for the fourth quarter ended December 31, 2004. On a per diluted share basis, net income was 32 cents for the fourth quarter of 2005 as compared to 12 cents for the same quarter a year ago.

Net income for the year ended December 31, 2005 was $274.0 million as compared to $304.7 million for the year ended December 31, 2004. On a per diluted share basis, earnings for the year ended December 31, 2005 were $1.55 as compared to $1.75 for the same period a year ago.

GAAP earnings were impacted by several items in the fourth quarter of 2005. First, the after-tax impact of the amortization of identifiable intangible assets amounted to $20.0 million for the quarter or 11 cents per diluted share. Second, the after-tax impact of the Company's previously-announced balance sheet restructuring program amounted to $29.3 million for the quarter or 17 cents per diluted share. Third, the after-tax effects of merger and consolidation costs for the quarter of $3.4 million amounted to 2 cents per diluted share.

Excluding the above items, earnings for the quarter ended December 31, 2005 were $108.1 million, as compared to $106.0 million for the fourth quarter of 2004. On a per diluted share basis excluding the above items, earnings for the fourth quarter of 2005 were 62 cents, up 5% from 59 cents for the same quarter a year ago.

For the year ended December 31, 2005, earnings excluding the after-tax impact of the amortization of identifiable intangible assets, the after-tax effects of merger and consolidation costs, the after-tax effect of the change in unrealized loss on derivatives and charges related to the Company's deleveraging and balance sheet restructuring strategies were $438.5 million, up 9% from $402.2 million for 2004. On a per diluted share basis excluding the above items earnings for the year ended December 31, 2005 were $2.48, up 7% from $2.31 for the prior year.

"It was a c...

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