PORTLAND (AP) – A decade ago, Banknorth Group Inc. was called Peoples Heritage Financial Group, was only the fourth-largest bank in Maine and operated almost entirely within the state.

Banknorth now has operations in New York and five of the six New England states. With nearly $29 billion in assets, Banknorth has grown to become one of the top 35 commercial banks in the country.

And now, the Portland-based Banknorth is poised to become the largest bank headquartered in New England.

“I remember back in the early ’90s, going down to Wall Street and talking with people and they’re saying, ‘Who are you?’ and ‘Where are you from?”‘ said William Ryan, Banknorth chairman, president and chief executive officer.

“Now they ask me to sit in the front row,” added Ryan, who took over Peoples Heritage in 1989 and has since followed an aggressive acquisition strategy.

Banknorth announced earlier this month it had reached an agreement to purchase the parent company of Cape Cod Bank and Trust Co. in an all-stock deal valued at about $300 million.

With the Charlotte-based Bank of America’s pending acquisition of FleetBoston, Banknorth is about to become the largest bank headquartered in New England.

Gerard Cassidy, an analyst with RBC Capital Markets in Portland, said nobody 10 years ago would have envisioned Banknorth growing to its present size and gaining the force it’s become in New England.

With the pending acquisitions, Banknorth may be in a position to make some inroads into Fleet’s customer base, but it may not be large, Cassidy said. He nsaid Fleet already has a reputation as a large, not particularly personable bank, so customers looking for a community-bank feel have probably already changed banks.

Banknorth might be able to lure Fleet executives who have good relationships with their commercial customers, Cassidy added.

“If you can win over the senior officers, they can bring the customers with them,” he said.

AP-ES-12-21-03 1315EST