PORTLAND (AP) – Banknorth Group Inc. reported Tuesday that earnings for 2003 increased 17 percent from the previous year, and that fourth-quarter earnings were up 19 percent.

For the year, Banknorth had earnings of $350.8 million, up from $298.6 million in 2002. Bank officials said it was the 11th straight year of record earnings on an operating basis.

For the fourth quarter ending Dec. 31, the bank had earnings of $91.6 million, up from $77.1 million for the same period a year earlier.

The bank’s earnings per share, 55 cents for the quarter and $2.15 for the year, were in line with expectations of analysts polled by Thomson First Call.

The earnings report capped a successful year for Banknorth. During 2003, its loans and leases rose 16 percent, deposits increased 14 percent and assets jumped by $3 billion, officials said.

When Bank of America Corp.’s takeover of FleetBoston Financial Corp. is complete, Banknorth will become the largest bank with headquarters in New England.

“Perhaps most satisfying of all, though, our stock price increased by 44 percent over the course of 2003,” said William Ryan, Banknorth’s chief executive officer and president.

Banknorth Group’s banking subsidiaries include Peoples Heritage in Maine, Bank of New Hampshire, Banknorth Massachusetts, Banknorth Vermont, Banknorth Connecticut and Evergreen Bank in upstate New York.

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Banknorth Group Inc. http://www.banknorth.com

AP-ES-01-20-04 1016EST