Banknorth posts record first-quarter earnings

PORTLAND – Banknorth Group Inc. on Thursday reported a 15 percent gain in earnings in the first quarter despite special charges related to the acquisitions of two banking companies in Massachusetts.

Banknorth finished the quarter ended March 31 with record earnings of $67.3 million, or 45 cents per share, compared to $55.1 million, or 39 cents a share, during the same period in 2001, the company said.

Earnings would have been $72.7 million if not for special charges, mostly related to the acquisitions of Andover Bancorp and MetroWest Bank. “As we emerge from the recession of last year it is difficult to predict how fast business activity and employment levels will recover, so we are pleased to achieve record earnings in what is historically our slowest quarter of the year,” said William J. Ryan, president and chief executive officer.

Excluding one-time charges, Banknorth had earnings of 48 cents per share, which was in line with expectations of analysts surveyed by Thomson Financial/First Call. Banknorth shares dropped 1 percent to $23.49 in trading on the New York Stock Exchange.

“The numbers were very solid. It’s what we’ve come to expect,” said Jim Ackor, a bank analyst with RBC Capital Markets in Portland.

Ryan said the acquisitions contributed to Banknorth’s loan growth of 19 percent, and he predicted even better performance once efficiencies of the acquisition of the two banking companies are achieved.