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For Immediate Release
April 18, 2000

Contact:

Beryl Wolfe
(207) 775-5115

Web Site: http://www.tdbank.com/

1st Quarter EPS Up 11% at Peoples Heritage

Portland, Maine, April 18, 2000 -- Peoples Heritage Financial Group, Inc. (NASDAQ: PHBK) announced today operating earnings of $40.4 million, or 40 cents per share, for the quarter ended March 31, 2000, up 11% on a per share basis over operating earnings of $37.6 million, or 36 cents per share, for the quarter ended March 31, 1999. On a net income basis, including branch closing costs of $1.1 million (after tax) in the first quarter of 2000 and merger related and other special charges of $24.1 million (after tax) in the first quarter of 1999, the Company earned $39.3 million, or 39 cents per share, for the quarter ended March 31, 2000, up 200% on a per share basis from net income of $13.5 million, or 13 cents per share, for the quarter ended March 31, 1999.

"Double digit growth in consumer and commercial lending in the first quarter of 2000 over the same quarter a year ago was the primary driver of earnings," said William J. Ryan, Company Chairman, President and Chief Executive Officer. "We are particularly pleased that commercial and consumer lending outpaced the fourth quarter of 1999 even though the first quarter of the year is historically our slowest.

"Market disruption in Massachusetts as the result of major mergers and divestitures was clearly a factor in our commercial and consumer loan growth."

Consumer loan balances, composed primarily of indirect automobile lending and home equity loans, were up 17% at March 31, 2000 over March 31, 1999. Commercial business loans were up 16% and commercial real estate loans were up 11% for the same period.

Noninterest income, composed primarily of fee income from trust and investment services, insurance commissions from Morse, Payson & Noyes Insurance, and mortgage banking and other customer service fees, was up 21% for the quarter ended March 31, 2000 over the same quarter a year ago.

Noninterest income for the quarter ended March 31, 2000 was 24.4% of revenue, up from 22.5% for full-year 1999. The Company has set a goal of noninterest income reaching 30% of total income over the next three years.

Noninterest expense for the quarter ended March 31, 2000 was down 24% from the same quarter a year ago but the reduction was the result of special charges, mostly merger related, in the quarter ended March 31, 1999. Exclusive of special charges, noninterest expense for the first quarter rose 6% over the same quarter a year ago and 2% over the previous quarter ended December 31, 1999.

Asset quality remained strong. Nonperforming assets as a percentage of total assets at March 31, 2000 were 0.40%, down from 0.48% at March 31, 1999. Nonperforming loans as a percentage of total loans at March 31, 2000 were 0.62%, down from 0.68% at March 31, 1999.

Peoples Heritage Financial Group is a $13.8 billion multi-state banking and financial services holding company headquartered in Portland, Maine. Pending final regulatory approval, the Company plans to complete its merger of Banknorth Group, Inc., with assets of $4.5 billion, during the second quarter. Peoples Heritage will then change its holding company name to Banknorth, believing that the new corporate name is more indicative of its geographic presence in New England and upstate New York and more reflective of the Company's status as a commercial bank holding company.

"Our balance sheet has long reflected that of a commercial bank although much of our roots are in the thrift industry," said Mr. Ryan. "We believe it is time for our holding company name to reflect that presence as a commercial banking company with a strong commitment to our northeastern communities."

The Company's banking subsidiaries are Peoples Heritage Bank in Maine and Bank of New Hampshire, each with its state's leading deposit market share, Family/SIS Bank in Massachusetts and Glastonbury Bank & Trust in Connecticut. The Company and its affiliate banks also operate subsidiaries in trust and investments, insurance and leasing.

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