Banknorth posts records for quarter, year earnings

PORTLAND – Banknorth Group Inc. reported Thursday that its fourth-quarter earnings grew 25 percent for a record finish to 2002, marking the ninth consecutive year of record earnings for the bank holding company.

Banknorth reported net income of $77.1 million, or 52 cents per diluted share, for the quarter ended Dec. 31, compared with $61.6 million, or 42 cents per diluted share, during the same period in 2001.

William J. Ryan, chairman, president and chief executive officer, said depth of products helped Banknorth overcome declining interest rates and a weak stock market that hurt trust and investment services income.

Banknorth reported strong loan growth and fee income gains in insurance commissions, mortgages, deposits and electronic banking income.

“Our success in the face of these challenges bears out our strategy of expanding profitably and providing our customers a full range of financial services,” Ryan said in a statement.

The company finished the year with record net income of $298.6 million, up 25 percent from the previous record year of 2001.

“It’s very consistent,” said Jim Ackor, a banking analyst with RBC Capital Markets in Portland. “In 2003, barring some unseen exogenous shock to the system, it’ll be another record year.”

Banknorth completed three bank acquisitions in 2002: Bancorp Connecticut Inc., parent of Southington Savings Bank; Ipswich Bancshares, parent of IpswichBank; and Warren Bancorp, parent of Warren Five Cents Bank, both of Massachusetts.

In February, Banknorth will complete the acquisition of American Financial Holdings Inc., parent of American Savings Bank in Connecticut.

Banknorth will continue to consolidate recent acquisitions in the new year, build on successes in growth areas and focus on providing investment, insurance and other products in southern New England, Ryan said.