Record Quarterly Earnings at Banknorth

Up 25% Over Year-Ago Second Quarter

Portland, Maine, July 22, 2002 - Banknorth Group, Inc. (NASDAQ: BKNG), with $21.3 billion in assets, today announced record quarterly net earnings of $75.0 million, or 50 cents per diluted share, up 25% from net earnings of $59.9 million, or 43 cents per diluted share, for the same quarter a year ago. Exclusive of special charges, second quarter net earnings were $75.7 million, or 51 cents per diluted share, up 26% from $59.9 million, or 43 cents per diluted share, for the second quarter of 2001.

For the first half of 2002, net income was $142.3 million, or 95 cents per diluted share, up 24% from net income of $115.0 million, or 82 cents per diluted share, during the first six months of 2001. Exclusive of special charges, net earnings were $148.4 million, or 99 cents per diluted share, for the first half of 2002, up 25% from $118.9 million, or 85 cents per diluted share for the first half of 2001. The Company is on pace for its ninth consecutive record earnings year, exclusive of special charges in some of those years.

"Loans and deposits, the core of basic banking, have shown strong growth from the midpoint of 2001 to the end of the first half of 2002," said William J. Ryan, Company Chairman, President and Chief Executive Officer. "We have increased loans and deposits in our traditional markets and benefited from sound acquisitions. In addition, fee income is up 9% in the second quarter of this year over the same quarter a year ago."

Total loans at June 30, 2002 were 20% higher than total loans at June 30, 2001, led by double-digit increases in commercial and residential loans. Total deposits at June 30, 2002 were 16% higher than total deposits at June 30, 2001, increasing by double digits in savings, checking and money market accounts.

Noninterest income, principally fee income from banking services, merchant services, insurance commissions, investment planning services and other areas, increased to $63.0 million in the second quarter ended June 30, 2002 from $57.6 million for the same quarter a year ago, and to $124.6 million for the first six months of 2002 from $116.4 million for the first half of 2001.

In the fourth quarter of 2001, the Company completed its acquisitions of Andover Bancorp, Inc. and MetroWest Bank. Both former companies have been fully integrated into Banknorth Massachusetts, the Company's Massachusetts banking division.

A number of key financial measurements for the second quarter and first half of 2002 improved over the same periods of 2001:

The Company's net interest margin for the second quarter of 2002 was 4.18% versus 3.96% for the same quarter a year ago. For the first half of 2002, the net interest margin was 4.21%, up from 3.86% for the same period of 2001.

Return on average assets was 1.44% and 1.39% for the second quarter of 2002 and first six months of the year, respectively, up from 1.32% and 1.28% for the same periods of 2001, respectively.

The Company's efficiency ratio was 52.45% and 52.66% for the second quarter of 2002 and the first half of the year, respectively, improving from 54.57% and 55.14% for the same periods of 2001, respectively.

Credit quality improved as compared to the same period a year ago and the previous quarter. At June 30, 2002, nonperforming loans as a percentage of total loans were at 0.51%, down from 0.62% at June 30, 2001 and from 0.56% at March 31, 2002. Nonperforming assets as a percentage of total assets were at 0.34% at June 30, 2002, down from 0.40% at June 30, 2001 and from 0.37% at March 31, 2002.

Net charge-offs in the second quarter ended June 30, 2002, totaling $8.3 million, were up slightly from $7.6 million for the same quarter a year ago but declined from $10.8 million in the previous quarter ended March 31, 2002. Net charge-offs to average loans for the quarter ended June 30, 2002 were 0.26% as compared to 0.28% for the same quarter a year ago and 0.34% for the previous quarter ended March 31, 2002.

Shareholders' equity at June 30, 2002 was $1.8 billion, up 33% from $1.4 billion at June 30, 2001. Book value per share was $12.34 at June 30, 2002, up from $9.92 at June 30, 2001.

The Company's announced acquisition of Ipswich Bancshares, Inc. (NASDAQ: IPSW), based in Ipswich Massachusetts, will close on July 26, 2002. The Company's announced acquisition of Bancorp Connecticut, Inc. (NASDAQ: BKCT), parent company of Southington Savings Bank, based in Southington, Connecticut, is pending final regulatory approvals.

Banknorth Group, Inc., headquartered in Portland, Maine, is one of the country's 35 largest commercial banking companies. The Company's banking subsidiary, Banknorth, N. A., operates banking divisions in Connecticut, Maine, Massachusetts, New Hampshire, New York and Vermont. Banknorth also operates subsidiaries and divisions in insurance, investment planning, money management, leasing, merchant services, mortgage banking, government banking and other financial services.

Note: 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.