Earnings PORTLAND: TD BANKNORTH’S PROFIT FALLS

Financial services company TD Banknorth said Wednesday that second-quarter net income fell because of various charges related to an acquisition. The company posted net income of $93.4 million, or 41 cents per share, for the quarter ending June 30, versus profits of $95.6 million, or 55 cents per share, in the year-ago quarter. The company had 31 percent more shares in the recent quarter compared to the second quarter of 2005. Last quarter’s results included charges of 15 cents per share, compared with charges of 14 cents per share and a one-time gain of 6 cents per share in the year-earlier period. Adjusted for one-time charges mostly related to the company’s acquisition of Hudson United Bancorp of Mahwah, N.J., earnings increased to $128.3 million, or 56 cents per share, from $109.1 million in the year-ago quarter. Analysts polled by Thomson Financial forecast earnings of 55 cents per share. Net interest income rose 21 percent to $306.8 million because of additional earnings from acquired loans. Loans increased 27 percent to $25.7 billion and deposits rose 34 percent to $26.8 billion because of it acquisition of Hudson United Bancorp, which expanded its reach into New Jersey and Philadelphia markets. Net interest margin, or the spread of yields collected on loans over interest paid on deposits, fell to 4.07 percent from 4.12 percent. The company said the slip in margins stemmed from a strategy to shift assets on its balance sheet. Noninterest income, or earnings from charges and fees, rose to $127.1 million from $117.3 million. TD Banknorth has more than $40 billion in assets with banks in Maine, Connecticut, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania and Vermont.