TD Banknorth Earnings Down

Profit falls short of Wall Street expectations.
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Northeastern regional lender

TD Banknorth


reported a 3% decline in third-quarter profit, falling short of Wall Street expectations.

In the quarter, the bank earned $86 million, or 38 cents a share, compared to $88.7 million, or 51 cents a share, a year ago.

The Maine-based lender had more shares outstanding in the third quarter.

Revenue was $429 million, up 22%. The results were aided by the addition of Hudson United Bancorp earlier this year.

Operating earnings, which excludes merger-related charges, rose 7% to $117 million, or 51 cents a share.

On that basis, analysts, as surveyed by Thomson Financial, were looking for earnings of 52 cents a share on revenue of $426 million.

The bank said its net interest margin declined in the quarter due to the tricky interest rate environment for banks.

The lender also reported a spike in money set aside for bad loans. In the quarter, the provision for bad loans was $14.1 million, up from $6.3 million a year ago.