Banknorth 8-K Financial statements and exhibits

For Immediate Release
For Further Information, Contact:
Jeff Nathanson, SVP, Investor Relations
207 761-8517

Banknorth reports record earnings. Net Income Up 10%.

(Second Quarter Earnings Conference Call at 1:30 p.m. Eastern Time today, July 19, 2004. Dial-in number for USA and Canada is 800 901-5241. International dial-in number is 617-786-2963. Passcode for both numbers is 10986982. Replay number for USA and Canada is 888-286-8010. International replay dial-in number is 617-801-6888. Replay passcode for both is 67555612. Live webcast and webcast replay available atwww.banknorth.com, Investor Relations.)

Portland, Maine, July 19, 2004 – Banknorth Group, Inc. (NYSE: BNK) today announced net income of $95.8 million for the second quarter ended June 30, 2004, a 10% increase over net income of $87.5 million for the second quarter of 2003. On a per diluted share basis, net income was 55 cents for the second quarter, up 4% over the same quarter a year ago.

Exclusive of merger and consolidation costs, net income was $98.5 million for the quarter ended June 30, 2004, up 11% from $88.5 million for the second quarter of 2003. On a per share basis, net income exclusive of merger and consolidation costs was 57 cents per diluted share for the quarter ended June 30, 2004 up 6% from 54 cents per diluted share for the quarter ended June 30, 2003.

Banknorth’s net income for the six months ended June 30, 2004 amounted to $186.2 million, a 10% increase over net income of $168.9 million for the six months ended June 30, 2003. On a per diluted share basis, net income for the first half of 2004 was $1.10, which represented a 6% increase over the $1.04 net income per diluted share for the first half of 2003.

“It was a solid quarter all the way around marked by strong loan and deposit growth, successful acquisition integration and tight expense control.” said William J. Ryan, Banknorth Chairman, President and Chief Executive Officer.

Net interest income was $230.1 million in the second quarter of 2004, a 9% increase as compared to $211.6 million of net interest income in the second quarter of 2003.

Noninterest income, excluding gains on sales of securities, increased 5% in the second quarter of 2004 as compared to the second quarter of 2003. Investment planning services income increased 32%, trust and investment management services income increased 24%, merchant and electronic banking income increased 18%, deposit services fees rose 15%, and insurance brokerage commissions were up 12%. These increases were partially offset by a decrease in mortgage banking revenue of $2.7 million during the quarter ended June 30, 2004 as compared to the quarter ended June 30, 2003, and by a decrease in option income of $4.9 million for the same period.

Noninterest expense, excluding prepayment penalties on borrowings in the second quarter of 2003 and merger and consolidation expenses, increased by 5% in the second quarter of 2004 as compared to the second quarter of 2003. Salaries and employee benefits and advertising and marketing expenses both increased by 6% for the quarter ended June 30, 2004 as compared to the quarter ended June 30, 2003. When compared to the first quarter of 2004, noninterest expense, excluding merger and consolidation expenses, increased by just $1.6 million or 1.0%.

Total assets increased by 14% to $29.3 billion at June 30, 2004 up from $25.8 billion at June 30, 2003. Total assets increased by $2.4 billion at June 30, 2004 compared to March 31, 2004, of which $1.8 billion was due to the acquisitions of CCBT Financial Companies, Inc. and Foxborough Savings Bank on April 30, 2004.

Total loans and leases increased by 15% to $18.1 billion at June 30, 2004 from $15.7 billion at June 30, 2003, with commercial real estate loans and commercial business loans and leases both up 18% and consumer loans up 13%. Total loans and leases at June 30, 2004 were 9% higher than the $16.6 billion of total loans and leases at March 31, 2004.

Total deposits at June 30, 2004 were $19.3 billion, 9% higher than at June 30, 2003. Noninterest bearing deposits, principally checking accounts, increased by 24% and money market and NOW accounts increased by 16% while regular savings accounts increased by 6%. Retail certificates of deposit declined by 8%, reflecting the Company’s strategy to allow these higher rate CDs to run off. Total deposits at June 30, 2004 were 8% higher than the $18.0 billion of total deposits at March 31, 2004.

The Company’s net interest margin for the quarter ended June 30, 2004 was 3.66% as compared to 3.71% for the quarter ended June 30, 2003 and 3.68% for the quarter ended March 31, 2004.

Asset quality remained strong and continued positive trends. Non-performing loans decreased by $2.7 million or 4% in the second quarter of 2004 as compared to the first quarter of 2004. As a percentage of total loans, non-performing loans declined to .36% at June 30, 2004, down from .39% at June 30, 2003 and down from .41% at March 31, 2004. As a percentage of total assets, non-performing assets declined to .23% at June 30, 2004 as compared to .25% at June 30, 2003 and .26% at March 31, 2004.

At June 30, 2004, the Company’s Tier 1 leverage capital was 6.75% as compared to 6.36% at June 30, 2003 and 6.84% at March 31, 2004. The Company’s total risk based capital ratio was 10.98% at June 30, 2004 as compared to 10.99% at June 30, 2003 and 11.47% at March 31, 2004.

At June 30, 2004, the Company’s book value per share was $16.61 while tangible book value per share was $8.39. Shareholders’ equity was $2.87 billion at June 30, 2004.

Banknorth also announced today that it has completed the previously-announced acquisition of Drake, Swan & Crocker Insurance Agency of Orleans, Massachusetts.

At June 30, 2004, Banknorth Group, headquartered in Portland, Maine and one of the 30 largest commercial banks in the country, had $29.3 billion in assets. The pending acquisition of BostonFed Bancorp, Inc., expected to close in the first quarter of 2005, is projected to increase Banknorth’s assets by more than $1.5 billion. Banknorth’s banking subsidiary, Banknorth, N.A., operates banking divisions in Connecticut (Banknorth Connecticut); Maine (Peoples Heritage Bank); Massachusetts (Banknorth Massachusetts); New Hampshire (Bank of New Hampshire); New York (Evergreen Bank); and Vermont (Banknorth Vermont). The Company and Banknorth, N.A. also operate subsidiaries and divisions in insurance, money management, merchant services, mortgage banking, government banking and other financial services and offer investment products in association with PrimeVest Financial Services, Inc. The Company’s website is at www.banknorth.com.

Note: This news release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s management uses these non-GAAP measures in its analysis of the Company’s performance. These measures typically adjust GAAP performance measures to exclude the effects of charges and expenses related to the consummation of mergers and acquisitions and costs related to the integration of merged entities, as well as the amortization of intangible assets in the case of “cash basis” performance measures. These non-GAAP measures also may exclude other significant gains or losses that are unusual in nature, such as security gains and prepayment penalties. Because these items and their impact on the Company’s performance are difficult to predict, management believes that presentations of financial measures excluding the impact of these items provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.

This news release contains certain forward-looking statements with respect to the financial condition, results of operations and business of Banknorth. Forward-looking statements are subject to various factors which could cause actual results to differ materially from these estimates. These factors include, but are not limited, to, changes in general economic conditions, interest rates, deposit flows, loan demand, competition, legislation or regulation and accounting principles, policies or guidelines, as well as other economic, competitive, governmental, regulatory and accounting and technological factors affecting Banknorth’s operations. In addition, acquisitions may result in large one-time charges to income, may not produce revenue enhancements or cost savings at levels or within time frames originally anticipated and may result in unforeseen integration difficulties. Investors are encouraged to access Banknorth’s periodic reports filed with the Securities and Exchange Commission for financial and business information regarding Banknorth, including information which could affect Banknorth’s forward-looking statements.

Banknorth Group, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS (Unaudited)

	June 30,		June 30,		%			March 31,		%
(In thousands)	2004		2003		Change			2004		Change
Cash and due from banks	$	613,675	$	661,103		-7	%	$	516,772		19	%
Federal funds sold and other short-term investments		10,917		2,968		268	%		8,356		31	%
Securities available for sale		7,888,172		6,992,917		13	%		7,389,833		7	%
Securities held to maturity		103,792		166,239		-38	%		115,442		-10	%
Loans and leases held for sale		67,207		92,795		-28	%		46,970		43	%
Loans and leases:
Residential real estate mortgages		3,092,269		2,852,991		8	%		2,647,540		17	%
Commercial real estate mortgages		6,086,800		5,140,130		18	%		5,549,406		10	%
Commercial business loans and leases		3,825,003		3,229,718		18	%		3,482,093		10	%
Consumer loans and leases		5,106,240		4,510,473		13	%		4,944,573		3	%
Total loans and leases		18,110,312		15,733,312		15	%		16,623,612		9	%
Less: Allowance for loan and lease losses		247,620		227,240		9	%		233,297		6	%
Loans and leases, net		17,862,692		15,506,072		15	%		16,390,315		9	%
Premises and equipment		288,362		271,124		6	%		260,302		11	%
Goodwill		1,364,716		1,092,345		25	%		1,127,799		21	%
Identifiable intangible assets		53,972		38,986		38	%		34,491		56	%
Bank owned life insurance		500,132		476,470		5	%		493,729		1	%
Other assets		522,153		449,091		16	%		495,583		5	%
	$	29,275,790	$	25,750,110		14	%	$	26,879,592		9	%
Liabilities & Shareholders’ Equity
Deposits:
Regular savings	$	2,624,256	$	2,472,816		6	%	$	2,517,632		4	%
Retail money market and NOW accounts		7,872,310		6,759,000		16	%		7,268,948		8	%
Retail certificates of deposit		4,701,046		5,122,392		-8	%		4,592,577		2	%
Noninterest bearing deposits		4,139,017		3,340,408		24	%		3,578,609		16	%
Total deposits		19,336,629		17,694,616		9	%		17,957,766		8	%
Borrowings from the Federal Home Loan Bank		1,476,626		1,634,507		-10	%		1,485,014		-1	%
Federal funds purchased and securities sold under repurchase agreements		4,625,277		2,610,493		77	%		3,823,452		21	%
Subordinated debt and senior notes		340,002		362,942		-6	%		362,961		-6	%
Other borrowings		158,774		8,758		1713	%		61,360		159	%
Junior subordinated debentures		310,746		—		100	%		305,591		2	%
Company obligated, mandatorily redeemable securities of subsidiary trusts holding solely parent junior subordinated debentures		—		295,056		-100	%		—		0	%
Other liabilities		161,044		679,987		-76	%		231,537		-30	%
Total liabilities		26,409,098		23,286,359		13	%		24,227,681		9	%
Shareholders’ equity		2,866,692		2,463,751		16	%		2,651,911		8	%
	$	29,275,790	$	25,750,110		14	%	$	26,879,592		9	%

3

Banknorth Group, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

	Six Months Ended June 30,				%			Three Months Ended June 30,				%
(In thousands, except per share data)	2004		2003		Change			2004		2003		Change
Interest and dividend income	$	601,798	$	611,805		-2	%	$	309,146	$	302,478		2	%
Interest expense		154,139		194,095		-21	%		79,096		90,904		-13	%
Net interest income		447,659		417,710		7	%		230,050		211,574		9	%
Provision for loan and lease losses		19,000		21,401		-11	%		9,500		10,500		-10	%
Net interest income after provision for loan and lease losses		428,659		396,309		8	%		220,550		201,074		10	%
Noninterest income:
Deposit services		53,412		46,273		15	%		27,260		23,747		15	%
Insurance brokerage commissions		26,014		23,305		12	%		12,278		10,948		12	%
Merchant and electronic banking income, net		23,474		20,118		17	%		13,069		11,098		18	%
Trust and investment management services		19,019		15,309		24	%		9,870		7,957		24	%
Bank owned life insurance		11,771		11,168		5	%		6,275		5,826		8	%
Investment planning services		9,985		7,167		39	%		5,146		3,911		32	%
Net gains on sales of securities		6,936		36,206		-81	%		3,355		33,423		-90	%
Other noninterest income		27,083		34,521		-22	%		12,223		18,918		-35	%
		177,694		194,067		-8	%		89,476		115,828		-23	%
Noninterest expense:
Salaries and employee benefits		174,538		162,941		7	%		87,005		82,248		6	%
Occupancy and equipment expense		55,111		53,739		3	%		27,512		27,579		0	%
Data processing		20,455		20,593		-1	%		10,018		10,415		-4	%
Advertising and marketing		13,827		11,017		26	%		6,303		5,957		6	%
Amortization of identifiable intangible assets		3,988		4,302		-7	%		2,084		2,306		-10	%
Merger and consolidation costs (1)		5,748		5,981		-4	%		4,135		1,530		170	%
Prepayment penalties on borrowings		—		30,490	NM				—		30,490	NM
Other noninterest expense		49,877		44,884		11	%		26,769		23,514		14	%
		323,544		333,947		-3	%		163,826		184,039		-11	%
Income before income tax expense		282,809		256,429		10	%		146,200		132,863		10	%
Income tax expense		96,636		87,510		10	%		50,353		45,338		11	%
Net Income	$	186,173	$	168,919		10	%	$	95,847	$	87,525		10	%
Weighted average shares outstanding:
Basic		166,318		159,980		4	%		169,637		162,312		5	%
Diluted		169,903		161,898		5	%		173,109		164,559		5	%
Earnings per share:
Basic	$	1.12	$	1.06		6	%	$	0.57	$	0.54		6	%
Diluted		1.10		1.04		6	%		0.55		0.53		4	%

(1) Merger and consolidation costs consist of merger charges, certain asset write-downs and branch closing costs.

NM - calculated % change is not meaningful

4

Banknorth Group, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (Unaudited)

	Six Months Ended June 30,						%			Three Months Ended June 30,						%
(In thousands, except per share data)	2004			2003			Change			2004			2003			Change
Net interest income	$	447,659		$	417,710			7	%	$	230,050		$	211,574			9	%
Net income	$	186,173		$	168,919			10	%	$	95,847		$	87,525			10	%
Shares outstanding (end of period)		172,546			160,843			7	%		172,546			160,843			7	%
Weighted average shares outstanding:
Basic		166,318			159,980			4	%		169,637			162,312			5	%
Diluted		169,903			161,898			5	%		173,109			164,559			5	%
Earnings per share:
Basic	$	1.12		$	1.06			6	%	$	0.57		$	0.54			6	%
Diluted	$	1.10		$	1.04			6	%	$	0.55		$	0.53			4	%
Shareholders’ equity (end of period)	$	2,866,692		$	2,463,751			16	%	$	2,866,692		$	2,463,751			16	%
Book value per share (end of period)	$	16.61		$	15.32			8	%	$	16.61		$	15.32			8	%
Tangible book value per share (end of period)	$	8.39		$	8.28			1	%	$	8.39		$	8.28			1	%
							Nominal									Nominal
							Inc/(Dec)									Inc/(Dec)
RATIOS & OTHER INFORMATION:
Net interest margin (net interest income as a % of average earning assets) (1)		3.67	%		3.69	%		-0.02	%		3.66	%		3.71	%		-0.05	%
Net interest spread (yield on earning assets minus yield on interest-bearing liabilities) (1)		3.44	%		3.41	%		0.03	%		3.43	%		3.45	%		-0.02	%
Return on average assets		1.36	%		1.35	%		0.01	%		1.36	%		1.38	%		-0.02	%
Return on average equity		13.82	%		14.25	%		-0.43	%		13.54	%		14.24	%		-0.70	%
At period end:
Tier 1 leverage capital ratio		6.75	%		6.36	%		0.39	%		6.75	%		6.36	%		0.39	%
Tangible equity/tangible assets		5.20	%		5.41	%		-0.21	%		5.20	%		5.41	%		-0.21	%
Total risk based capital ratio		10.98	%		10.99	%		-0.01	%		10.98	%		10.99	%		-0.01	%
Non-performing loans	$	65,143		$	60,735			7	%	$	65,143		$	60,735			7	%
Total non-performing assets	$	67,167		$	64,460			4	%	$	67,167		$	64,460			4	%
Non-performing loans as a % of total loans		0.36	%		0.39	%		-0.03	%		0.36	%		0.39	%		-0.03	%
Non-performing assets as a % of total assets		0.23	%		0.25	%		-0.02	%		0.23	%		0.25	%		-0.02	%
Full service banking offices		389			357						389			357
FINANCIAL INFORMATION AND RATIOS EXCLUDING CERTAIN ITEMS (Non-GAAP Financial Information):
Noninterest income as a percent of total income (2)		27.61	%		27.43	%		0.18	%		27.24	%		28.03	%		-0.79	%
Merger and consolidation costs on a net of tax basis (3)	$	3,737		$	3,895			-4	%	$	2,687		$	997			170	%
Per diluted share:		0.02			0.03			-33	%		0.02			0.01			100	%
Noninterest expense (4)	$	317,796		$	297,476			7	%	$	159,691		$	152,018			5	%
Return on average assets (5)		1.39	%		1.38	%		0.01	%		1.40	%		1.39	%		0.01	%
Cash return on average tangible assets (5) (6)		1.48	%		1.46	%		0.02	%		1.49	%		1.48	%		0.01	%
Return on average equity (5)		14.09	%		14.58	%		-0.49	%		13.92	%		14.40	%		-0.48	%
Cash return on average tangible equity (5) (6)		26.54	%		25.92	%		0.62	%		26.67	%		27.15	%		-0.48	%
Efficiency ratio (7)		51.39	%		51.68	%		-0.29	%		50.51	%		51.71	%		-1.20	%
Cash efficiency ratio (8)		50.74	%		50.94	%		-0.20	%		49.85	%		50.93	%		-1.08	%

(1)	Adjusted to fully taxable equivalent basis.
(2)	Excludes securities gains/(losses).
(3)	Merger and consolidation costs consist of merger charges, certain asset write-downs and branch closing costs.
(4)	Excludes pre-tax merger and consolidation costs.
(5)	Excludes merger and consolidation costs, net of related tax benefits.
(6)	Cash ratios reflect an adjustment to add back the amortization of intangible assets, net of related tax benefits.
(7)	Excludes securities gains/(losses) and merger and consolidation costs.
(8)	Excludes securities gains/(losses), merger and consolidation costs and amortization of intangible assets.

5

Banknorth Group, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (Unaudited)

	Three Months Ended June 30,
	2004						2003
	Average			Yield/			Average			Yield/
(Dollars in thousands)	Balance			Rate			Balance			Rate
Assets
Loans and leases (1)
Residential real estate mortgages	$	2,987,625			5.00	%	$	2,996,485			5.76	%
Commercial real estate mortgages		5,883,659			5.74	%		5,074,540			6.19	%
Commercial loans and leases		3,675,217			4.71	%		3,154,085			5.23	%
Consumer loans and leases		4,981,924			5.02	%		4,463,057			5.76	%
		17,528,425			5.19	%		15,688,167			5.79	%
Securities		7,875,274			4.27	%		7,280,880			4.24	%
Federal funds sold and other short-term investments		3,683			1.74	%		18,077			1.20	%
Total earning assets		25,407,382			4.91	%		22,987,124			5.30	%
Bank owned life insurance		497,250						472,853
Noninterest-earning assets		2,478,117						2,040,703
Total assets	$	28,382,749					$	25,500,680
Liabilities & Shareholders’ Equity
Interest-bearing deposits:
Regular savings	$	2,614,679			0.30	%	$	2,468,244			0.50	%
Retail money market and NOW accounts		7,646,403			0.79	%		6,582,004			0.97	%
Retail certificates of deposit		4,719,524			1.93	%		5,243,908			2.43	%
Total interest-bearing deposits		14,980,606			1.06	%		14,294,156			1.42	%
Borrowed funds		6,467,964			2.46	%		5,459,725			2.95	%
Total interest-bearing liabilities		21,448,570			1.48	%		19,753,881			1.85	%
Noninterest bearing deposits		3,898,967						3,099,420
Other liabilities		188,596						181,765
Shareholders’ equity		2,846,616						2,465,614
Total liabilities and shareholders’ equity	$	28,382,749					$	25,500,680
Net earning assets	$	3,958,812					$	3,233,243
Net interest income (fully taxable equivalent)	$	231,594					$	213,066
Less: fully taxable equivalent adjustments		(1,544	)					(1,492	)
Net interest income	$	230,050					$	211,574
Net interest rate spread (fully taxable equivalent)					3.43	%					3.45	%
Net interest margin (fully taxable equivalent)					3.66	%					3.71	%

(1) Loans and leases include portfolio loans and leases, loans held for sale and nonperforming loans.

6

Banknorth Group, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (Unaudited)

	Six Months Ended June 30,
	2004						2003
	Average			Yield/			Average			Yield/
(Dollars in thousands)	Balance			Rate			Balance			Rate
Assets
Loans and leases (1)
Residential real estate mortgages	$	2,856,423			5.09	%	$	2,895,113			5.86	%
Commercial real estate mortgages		5,712,075			5.72	%		4,994,310			6.31	%
Commercial loans and leases		3,531,263			4.76	%		3,080,635			5.27	%
Consumer loans and leases		4,932,477			5.07	%		4,325,750			5.89	%
		17,032,238			5.23	%		15,295,808			5.89	%
Securities		7,607,260			4.25	%		7,578,748			4.40	%
Federal funds sold and other short-term investments		5,605			1.12	%		11,346			1.40	%
Total earning assets		24,645,103			4.92	%		22,885,902			5.40	%
Bank owned life insurance		493,839						449,126
Noninterest-earning assets		2,315,929						1,949,017
Total assets	$	27,454,871					$	25,284,045
Liabilities & Shareholders’ Equity
Interest-bearing deposits:
Regular savings	$	2,541,547			0.30	%	$	2,321,821			0.54	%
Retail money market and NOW accounts		7,382,671			0.79	%		6,400,948			1.00	%
Retail certificates of deposit		4,689,767			1.95	%		5,128,769			2.53	%
Total interest-bearing deposits		14,613,985			1.08	%		13,851,538			1.49	%
Borrowed funds		6,257,627			2.43	%		5,863,321			3.16	%
Total interest-bearing liabilities		20,871,612			1.48	%		19,714,859			1.99	%
Noninterest bearing deposits		3,693,342						3,003,113
Other liabilities		179,954						175,298
Shareholders’ equity		2,709,963						2,390,775
Total liabilities and shareholders’ equity	$	27,454,871					$	25,284,045
Net earning assets	$	3,773,491					$	3,171,043
Net interest income (fully taxable equivalent)	$	450,694					$	420,464
Less: fully taxable equivalent adjustments		(3,035	)					(2,754	)
Net interest income	$	447,659					$	417,710
Net interest rate spread (fully taxable equivalent)					3.44	%					3.41	%
Net interest margin (fully taxable equivalent)					3.67	%					3.69	%

(1) Loans and leases include portfolio loans and leases, loans held for sale and nonperforming loans.

7

Banknorth Group, Inc. and Subsidiaries
Asset Quality (unaudited)
(Dollars in thousands)

	6/30/2004			3/31/2004			12/31/2003			9/30/2003			6/30/2003
Non-performing assets:
Residential real estate mortgages	$	7,870		$	7,990		$	7,157		$	9,135		$	9,827
Commercial real estate mortgages		27,951			24,620			19,700			27,069			19,139
Commercial business loans and leases		23,637			28,977			24,412			22,857			24,577
Consumer loans and leases		5,685			6,267			8,493			7,664			7,192
Total non-performing loans and leases		65,143			67,854			59,762			66,725			60,735
Other non-performing assets, net		2,024			2,700			3,341			3,632			3,725
Total non-performing assets	$	67,167		$	70,554		$	63,103		$	70,357		$	64,460
Allowance for loan and lease losses	$	247,620		$	233,297		$	232,287		$	229,581		$	227,240
Net loan charge-offs (recoveries):
Residential real estate mortgages		($41	)		($72	)	$	10		$	58		$	31
Commercial real estate mortgages		(665	)		(446	)		(168	)		(269	)		(474	)
Total real estate mortgages		(706	)		(518	)		(158	)		(211	)		(443	)
Commercial business loans and leases		3,387			1,785			2,404			519			4,468
Consumer loans and leases		6,160			7,223			8,111			7,853			5,913
Total net charge-offs	$	8,841		$	8,490		$	10,357		$	8,161		$	9,938
Ratios:
Allowance for loan and lease losses to total loans and leases		1.37	%		1.40	%		1.42	%		1.44	%		1.44	%
Allowance for loan and lease losses to non-performing loans		380.12	%		343.82	%		388.69	%		344.07	%		374.15	%
Non-performing loans to total loans and leases		0.36	%		0.41	%		0.37	%		0.42	%		0.39	%
Non-performing assets to total assets		0.23	%		0.26	%		0.24	%		0.27	%		0.25	%
Net charge-offs to average loans - QTD (1)		0.20	%		0.21	%		0.26	%		0.20	%		0.25	%

(1) Annualized.

8

Banknorth Group, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

	Three Months Ended
(In thousands, except per share data)	6/30/2004		3/31/2004		12/31/2003		9/30/2003		6/30/2003
Interest and dividend income	$	309,146	$	292,652	$	290,414	$	290,750	$	302,478
Interest expense		79,096		75,043		77,126		80,918		90,904
Net interest income		230,050		217,609		213,288		209,832		211,574
Provision for loan and lease losses		9,500		9,500		10,400		10,500		10,500
Net interest income after provision for loan and lease losses		220,550		208,109		202,888		199,332		201,074
Noninterest income:
Deposit services		27,260		26,153		25,881		25,167		23,747
Insurance brokerage commissions		12,278		13,736		11,480		10,930		10,948
Merchant and electronic banking income, net		13,069		10,404		10,542		11,115		11,098
Trust and investment management services		9,870		9,149		8,470		8,178		7,957
Bank owned life insurance		6,275		5,496		5,978		5,785		5,826
Investment planning services		5,146		4,839		4,765		3,761		3,911
Net gains on sales of securities		3,355		3,581		2,682		3,573		33,423
Other noninterest income		12,223		14,859		14,637		20,147		18,918
		89,476		88,217		84,435		88,656		115,828
Noninterest expense:
Salaries and employee benefits		87,005		87,534		81,451		82,230		82,248
Occupancy and equipment expense		27,512		27,599		26,731		26,188		27,579
Data processing		10,018		10,436		9,881		10,466		10,415
Advertising and marketing		6,303		7,523		5,430		5,553		5,957
Amortization of identifiable intangible assets		2,084		1,904		2,324		2,320		2,306
Merger and consolidation costs (1)		4,135		1,614		1,316		808		1,530
Prepayment penalties on borrowings		—		—		—		—		30,490
Other noninterest expense		26,769		23,109		28,543		24,082		23,514
		163,826		159,719		155,676		151,647		184,039
Income before income tax expense		146,200		136,607		131,647		136,341		132,863
Income tax expense		50,353		46,280		40,085		46,063		45,338
Net Income	$	95,847	$	90,327	$	91,562	$	90,278	$	87,525
Weighted average shares outstanding:
Basic		169,637		162,965		162,149		161,517		162,312
Diluted		173,109		166,657		165,685		164,446		164,559
Earnings per share:
Basic	$	0.57	$	0.55	$	0.56	$	0.56	$	0.54
Diluted		0.55		0.54		0.55		0.55		0.53

(1) Merger and consolidation costs consist of merger charges, certain asset write-downs and branch closing costs.

9

Banknorth Group, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (Unaudited)

	Three Months Ended
(In thousands, except per share data)	6/30/2004			3/31/2004			12/31/2003			9/30/2003			6/30/2003
Net interest income	$	230,050		$	217,609		$	213,288		$	209,832		$	211,574
Net income	$	95,847		$	90,327		$	91,562		$	90,278		$	87,525
Shares outstanding (end of period)		172,546			163,046			162,188			161,543			160,843
Weighted average shares outstanding:
Basic		169,637			162,965			162,149			161,517			162,312
Diluted		173,109			166,657			165,685			164,446			164,559
Earnings per share:
Basic	$	0.57		$	0.55		$	0.56		$	0.56		$	0.54
Diluted	$	0.55		$	0.54		$	0.55		$	0.55		$	0.53
Shareholders’ equity (end of period)	$	2,866,692		$	2,651,911		$	2,520,519		$	2,475,580		$	2,463,751
Book value per share (end of period)	$	16.61		$	16.26		$	15.54		$	15.32		$	15.32
Tangible book value per share (end of period)	$	8.39		$	9.14		$	8.37		$	8.32		$	8.28
RATIOS & OTHER INFORMATION:
Net interest margin (net interest income as a % of average earning assets) (1)		3.66	%		3.68	%		3.65	%		3.63	%		3.71	%
Net interest spread (yield on earning assets minus yield on interest-bearing liabilities) (1)		3.43	%		3.46	%		3.42	%		3.39	%		3.45	%
Return on average assets		1.36	%		1.37	%		1.39	%		1.39	%		1.38	%
Return on average equity		13.54	%		14.13	%		14.72	%		14.85	%		14.24	%
At period end:
Tier 1 leverage capital ratio		6.75	%		6.84	%		6.65	%		6.56	%		6.36	%
Tangible equity/tangible assets		5.20	%		5.79	%		5.37	%		5.46	%		5.41	%
Total risk based capital ratio		10.98	%		11.47	%		11.29	%		11.29	%		10.99	%
Non-performing loans	$	65,143		$	67,854		$	59,762		$	66,725		$	60,735
Total non-performing assets	$	67,167		$	70,554		$	63,103		$	70,357		$	64,460
Non-performing loans as a % of total loans		0.36	%		0.41	%		0.37	%		0.42	%		0.39	%
Non-performing assets as a % of total assets		0.23	%		0.26	%		0.24	%		0.27	%		0.25	%
Full service banking offices		389			358			359			357			357
FINANCIAL INFORMATION AND RATIOS EXCLUDING CERTAIN ITEMS (Non-GAAP Financial Information):
Noninterest income as a percent of total income (2)		27.24	%		28.00	%		27.71	%		28.85	%		28.03	%
Merger and consolidation costs on a net of tax basis (3)	$	2,687		$	1,049		$	855		$	525		$	997
Per diluted share:		0.02			0.01			0.01			—			0.01
Noninterest expense (4)	$	159,691		$	158,105		$	154,360		$	150,839		$	152,018
Return on average assets (5)		1.40	%		1.39	%		1.41	%		1.40	%		1.39	%
Cash return on average tangible assets (5)(6)		1.49	%		1.47	%		1.49	%		1.48	%		1.48	%
Return on average equity (5)		13.92	%		14.29	%		14.86	%		14.93	%		14.40	%
Cash return on average tangible equity (5)(6)		26.67	%		26.44	%		27.86	%		28.63	%		27.15	%
Efficiency ratio (7)		50.51	%		52.31	%		52.32	%		51.15	%		51.71	%
Cash efficiency ratio (8)		49.85	%		51.68	%		51.53	%		50.36	%		50.93	%

(1)	Adjusted to fully taxable equivalent basis.
(2)	Excludes securities gains/(losses).
(3)	Merger and consolidation costs consist of merger charges, certain asset write-downs and branch closing costs.
(4)	Excludes pre-tax merger and consolidation costs and prepayment penalties on borrowings.
(5)	Excludes merger and consolidation costs, net of related tax benefits.
(6)	Cash ratios reflect an adjustment to add back the amortization of intangible assets, net of related tax benefits.
(7)	Excludes securities gains/(losses), prepayment penalties on borrowings, and merger and consolidation costs.
(8)	Excludes securities gains/(losses), prepayment penalties on borrowings, merger and consolidation costs, and amortization of intangible assets.

Ratios are annualized where appropriate.

10

Banknorth Group, Inc. and Subsidiaries
Reconciliation Table – Non-GAAP Financial Information (Unaudited)

	Three Months Ended
(In thousands, except per share data)	6/30/2004			3/31/2004			12/31/2003			9/30/2003			6/30/2003
Net income (including merger and consolidation costs)	$	95,847		$	90,327		$	91,562		$	90,278		$	87,525
Add back merger and consolidation costs, net of tax
Merger related		2,687			1,355			862			525			1,397
Branch closings		—			(306	)		(7	)		—			—
Revised auto lease residual charge		—			—			—			—			(400	)
Excluding merger and consolidation costs		98,534			91,376			92,417			90,803			88,522
Add back amortization of intangibles, net of tax		1,354			1,238			1,511			1,508			1,499
Cash basis, excluding merger and consolidation costs	$	99,888		$	92,614		$	93,928		$	92,311		$	90,021
Basic earnings per share	$	0.57		$	0.55		$	0.56		$	0.56		$	0.54
Effects of merger and consolidation costs, net of tax		0.01			0.01			0.01			—			0.01
Excluding merger and consolidation costs		0.58			0.56			0.57			0.56			0.55
Effects of amortization of intangibles, net of tax		0.01			0.01			0.01			0.01			—
Cash basis, excluding merger and consolidation costs	$	0.59		$	0.57		$	0.58		$	0.57		$	0.55
Diluted earnings per share	$	0.55		$	0.54		$	0.55		$	0.55		$	0.53
Effects of merger and consolidation costs, net of tax		0.02			0.01			0.01			—			0.01
Excluding merger and consolidation costs		0.57			0.55			0.56			0.55			0.54
Effects of amortization of intangibles, net of tax		0.01			0.01			0.01			0.01			0.01
Cash basis, excluding merger and consolidation costs	$	0.58		$	0.56		$	0.57		$	0.56		$	0.55
Return on average assets		1.36	%		1.37	%		1.39	%		1.39	%		1.38	%
Effects of merger and consolidation costs, net of tax		0.04	%		0.02	%		0.02	%		0.01	%		0.01	%
Excluding merger and consolidation costs		1.40	%		1.39	%		1.41	%		1.40	%		1.39	%
Effects of amortization of intangibles, net of tax		0.09	%		0.08	%		0.08	%		0.08	%		0.09	%
Cash basis, excluding merger and consolidation costs		1.49	%		1.47	%		1.49	%		1.48	%		1.48	%
Return on average equity		13.54	%		14.13	%		14.72	%		14.85	%		14.24	%
Effects of merger and consolidation costs, net of tax		0.38	%		0.16	%		0.14	%		0.08	%		0.16	%
Excluding merger and consolidation costs		13.92	%		14.29	%		14.86	%		14.93	%		14.40	%
Effects of amortization of intangibles, net of tax		12.75	%		12.15	%		13.00	%		13.70	%		12.75	%
Cash basis, excluding merger and consolidation costs		26.67	%		26.44	%		27.86	%		28.63	%		27.15	%
Efficiency ratio		51.27	%		52.23	%		52.29	%		50.80	%		56.21	%
Effects of securities gains and prepayment penalties on borrowings		0.55	%		0.61	%		0.48	%		0.62	%		-3.98	%
Effects of merger and consolidation costs		-1.31	%		-0.53	%		-0.45	%		-0.27	%		-0.52	%
Excluding securities gains, prepayment penalties on borrowings, and merger and consolidation costs		50.51	%		52.31	%		52.32	%		51.15	%		51.71	%
Effects of amortization of intangibles		-0.66	%		-0.63	%		-0.79	%		-0.79	%		-0.78	%
Cash basis, excluding securities gains, prepayment penalties on borrowings and merger and consolidation costs		49.85	%		51.68	%		51.53	%		50.36	%		50.93	%
Non Interest Income	$	89,476		$	88,217		$	84,435		$	88,656		$	115,828
Net gains on sales of securities		3,355			3,581			2,682			3,573			33,423
Excluding securities gains	$	86,121		$	84,636		$	81,753		$	85,083		$	82,405
Non Interest Expense	$	163,826		$	159,719		$	155,676		$	151,647		$	184,039
Merger and consolidation costs		4,135			1,614			1,316			808			1,530
Prepayment penalties on borrowings		—			—			—			—			30,490
Excluding merger and consolidation costs and prepayment penalties on borrowings	$	159,691		$	158,105		$	154,360		$	150,839		$	152,019

11

Banknorth Group, Inc. and Subsidiaries
Reconciliation Table – Non-GAAP Financial Information (Unaudited)

	Six Month Ended
(In thousands, except per share data)	6/30/2004			6/30/2003
Net income (including merger and consolidation costs)	$	186,173		$	168,919
Add back merger and consolidation costs, net of tax
Merger related		4,043			4,324
Branch closings		(306	)		(29	)
Revised auto lease residual charge		—			(400	)
Excluding merger and consolidation costs		189,910			172,814
Add back amortization of intangibles, net of tax		2,592			2,797
Cash basis, excluding merger and consolidation costs	$	192,502		$	175,611
Basic earnings per share	$	1.12		$	1.06
Effects of merger and consolidation costs, net of tax		0.02			0.02
Excluding merger and consolidation costs		1.14			1.08
Effects of amortization of intangibles, net of tax		0.02			0.02
Cash basis, excluding merger and consolidation costs	$	1.16		$	1.10
Diluted earnings per share	$	1.10		$	1.04
Effects of merger and consolidation costs, net of tax		0.02			0.03
Excluding merger and consolidation costs		1.12			1.07
Effects of amortization of intangibles, net of tax		0.01			0.01
Cash basis, excluding merger and consolidation costs	$	1.13		$	1.08
Return on average assets		1.36	%		1.35	%
Effects of merger and consolidation costs, net of tax		0.03	%		0.03	%
Excluding merger and consolidation costs		1.39	%		1.38	%
Effects of amortization of intangibles, net of tax		0.09	%		0.08	%
Cash basis, excluding merger and consolidation costs		1.48	%		1.46	%
Return on average equity		13.82	%		14.25	%
Effects of merger and consolidation costs, net of tax		0.27	%		0.33	%
Excluding merger and consolidation costs		14.09	%		14.58	%
Effects of amortization of intangibles, net of tax		12.45	%		11.34	%
Cash basis, excluding merger and consolidation costs		26.54	%		25.92	%
Efficiency ratio		51.74	%		54.59	%
Effects of securities gains and prepayment penalties on borrowings		0.58	%		-1.87	%
Effects of merger and consolidation costs		-0.93	%		-1.04	%
Excluding securities gains, prepayment penalties on borrowings, and merger and consolidation costs		51.39	%		51.68	%
Effects of amortization of intangibles		-0.65	%		-0.74	%
Cash basis, excluding securities gains, prepayment penalties on borrowings, and merger and consolidation costs		50.74	%		50.94	%
Non Interest Income	$	177,694		$	194,067
Net gains on sales of securities		6,936			36,206
Excluding securities gains	$	170,758		$	157,861
Non Interest Expense	$	323,544		$	333,947
Merger and consolidation costs		5,748			5,981
Prepayment penalties on borrowings		—			30,490
Excluding merger and consolidation costs, write-off of branch automation project and prepayment penalties on borrowings.	$	317,796		$	297,476

12