TD Banknorth earnings flat in second quarter

PORTLAND – TD Banknorth Inc. on Thursday posted flat results for the second quarter as merger-related issues offset a 9 percent rise in operating earnings.

The regional bank said its net income for the three months ended June 30 was $95.6 million or 55 cents per share, compared to $95.8 million, or also 55 cents per share in the same period of 2004.

Excluding costs and accounting issues related to this year’s purchase of a 51 percent stake in the company by Canada’s TD Financial Group, earnings for the quarter were $109.1 million or 63 cents per share. Operating income for the corresponding quarter last year totaled $99.9 million or 58 cents per share.

“It was another solid quarter characterized by strong loan growth, solid asset quality and strong fee income growth,” said William Ryan, chairman, president and chief executive officer. “We are well positioned to execute our growth strategy going forward.”

TD Banknorth announced last week that it has agreed to acquire Hudson United Bancorp Inc. in a $1.9 billion stock and cash deal that will extend its business into the New Jersey and Philadelphia markets.

The earnings beat Wall Street estimates by 3 cents per share, according to a survey of analysts by Thomson Financial.

Average loans were up 15 percent from the second quarter last year, and the net interest margin rose to 4.12 percent from 3.96 percent during this year’s first quarter.

TD Banknorth, which has more than 350 branches, is the largest bank with headquarters in New England, with assets totaling $31.8 billion and offices in Maine, New Hampshire, Vermont, Massachusetts, Connecticut and upstate New York.