CHARTER ONE FINANCIAL INC - Quarterly Report (10-Q) INCOME STATEMENT

CHARTER ONE FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)


	Three Months Ended						Six Months Ended
	6/30/04			6/30/03			6/30/04			6/30/03
				(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	387,217		$	367,602		$	754,561		$	745,326
Mortgage-backed securities:
Available for sale		80,146			154,490			187,813			303,801
Held to maturity		2,823			6,858			6,194			15,127
Investment securities:
Available for sale		2,992			3,297			6,596			6,340
Held to maturity		47			56			95			110
Other interest-earning assets		7,586			7,856			15,379			15,241

Total interest income		480,811			540,159			970,638			1,085,945

Interest expense:
Deposits		90,659			126,734			186,545			260,477
Federal Home Loan Bank advances		71,036			104,025			147,283			203,824
Other borrowings		10,917			13,969			24,057			27,172

Total interest expense		172,612			244,728			357,885			491,473

Net interest income		308,199			295,431			612,753			594,472
Provision for loan and lease losses		7,160			35,360			25,776			96,831

Net interest income after provision for loan and lease losses		301,039			260,071			586,977			497,641

Other income:
Retail banking		115,197			97,087			214,810			181,187
Mortgage banking		59,343			(23,895	)		42,661			(23,922	)
Leasing operations		(597	)		(12,230	)		1,528			(19,086	)
Net gains (losses)		(14,240	)		108,549			(105,267	)		185,202
Bank owned life insurance and other		7,120			8,450			18,288			16,406

Total other income		166,823			177,961			172,020			339,787

Administrative expenses:
Compensation and employee benefits		102,109			90,790			204,077			177,846
Net occupancy and equipment		34,329			30,466			68,678			61,652
Marketing expenses		31,051			20,205			59,860			33,852
Federal deposit insurance premiums		1,052			1,125			2,135			2,267
Other administrative expenses		57,360			52,168			109,186			102,429

Total administrative expenses		225,901			194,754			443,936			378,046

Income before income taxes		241,961			243,278			315,061			459,382
Income taxes		75,615			77,241			98,459			145,854

Net income	$	166,346		$	166,037		$	216,602		$	313,528

Basic earnings per share	$	.74		$	.74		$	.96		$	1.40

Diluted earnings per share	$	.72		$	.72		$	.94		$	1.36

Average common shares outstanding :
Basic		224,089,781			225,501,687			223,811,719			225,249,543

Diluted		231,827,268			231,095,694			231,023,165			230,778,271

Cash dividends declared per share	$	.29		$	.24		$	.55		$	.46

See Notes to Consolidated Financial Statements.