Tuesday, April 24, 2007

TD Banknorth to Take Charge in Q2 on Job Cuts

Bloomberg, Doug Alexander, 24 April 2007

TD Banknorth Inc., the U.S. consumer-banking unit of Toronto-Dominion Bank, will take a pretax charge of $16 million to $20 million in the second quarter for job cuts and branch closures.

The costs are related to the decision by the Canadian bank to buy the shares of TD Banknorth it didn't already own and delist the stock, according to a filing sent to U.S. regulators today.

TD Banknorth said in March that it was closing as many as 24 branches and cutting 400 jobs as profit declined in five of the past seven quarters. TD Banknorth expects to record costs of between $40 million and $100 million in 2007 from the moves, the Portland, Maine-based bank said in the filing today.

The job cuts, equal to about 4 percent of the workforce, will be done in the next few months, and most of the branches will close by the third quarter, the bank had said. About 13 branches will be shut in New Jersey, where TD Banknorth bought Hudson United Bancorp and Interchange Financial Services Corp. last year.

Toronto-Dominion, which paid $3.2 billion to buy the 40.2 percent of TD Banknorth it didn't already own, is cutting expenses at the U.S. unit after profit fell because of rising costs for acquisitions and advertising, and lower demand for loans. TD Banknorth shares were delisted from the New York Stock Exchange on April 19.