<PAGE>
Annual Report
as of August 31, 2000
EVERGREEN
Southern State
Municipal Bond Funds
[LOGO OF EVERGREEN FUNDS]
<PAGE>
Table of Contents
Letter to Shareholders....................................... 1
Evergreen Florida High Income Municipal
Bond Fund
Fund at a Glance........................................... 2
Evergreen Florida Municipal Bond Fund
Fund at a Glance........................................... 5
Evergreen Georgia Municipal Bond Fund
Fund at a Glance........................................... 8
Evergreen Maryland Municipal Bond Fund
Fund at a Glance........................................... 11
Evergreen North Carolina Municipal
Bond Fund
Fund at a Glance........................................... 14
Evergreen South Carolina Municipal
Bond Fund
Fund at a Glance .......................................... 17
Evergreen Virginia Municipal
Bond Fund
Fund at a Glance .......................................... 20
Financial Highlights
Evergreen Florida High Income Municipal
Bond Fund ............................................... 23
Evergreen Florida Municipal Bond Fund ..................... 25
Evergreen Georgia Municipal Bond Fund ..................... 27
Evergreen Maryland Municipal Bond Fund .................... 29
Evergreen North Carolina Municipal
Bond Fund ............................................... 31
Evergreen South Carolina Municipal
Bond Fund ............................................... 33
Evergreen Virginia Municipal Bond Fund .................... 35
Schedules of Investments
Evergreen Florida High Income Municipal
Bond Fund ............................................... 37
Evergreen Florida Municipal Bond Fund ..................... 44
Evergreen Georgia Municipal Bond Fund ..................... 51
Evergreen Maryland Municipal Bond Fund .................... 55
Evergreen North Carolina Municipal
Bond Fund ............................................... 58
Evergreen South Carolina Municipal
Bond Fund ............................................... 63
Evergreen Virginia Municipal Bond Fund .................... 66
Combined Notes to Schedules of
Investments ................................................. 72
Statements of Assets and Liabilities ........................ 73
Statements of Operations .................................... 74
Statements of Changes in Net Assets ......................... 75
Combined Notes to Financial
Statements .................................................. 77
Independent Auditors' Report ................................ 86
Additional Information ...................................... 87
Evergreen Funds
Evergreen Funds is one of the nation's fastest growing investment companies with
over $80 billion in assets under management.
With over 80 mutual funds to choose among and acclaimed service and operations
capabilities, investors enjoy a broad range of quality investment products and
services designed to meet their needs.
The Evergreen Funds employ intensive, research-driven investment strategies
executed by over 90 research analysts and portfolio managers. The fund company
remains dedicated to meeting the needs of investors and their advisors in a
global economy. Look to Evergreen Funds to provide a distinctive level of
service and excellence in investment management.
This annual report must be preceded or accompanied by a prospectus of an
Evergreen fund contained herein. The prospectus contains more complete
information, including fees and expenses, and should be read carefully before
investing or sending money.
---------------------------------------------------------------
Mutual Funds: NOT FDIC INSURED MAY LOSE VALUE NOT BANK GUARANTEED
---------------------------------------------------------------
Evergreen Distributor, Inc.
Evergreen Funds/SM/ is a service mark of Evergreen Investment Services, Inc.
<PAGE>
Letter to Shareholders
October 2000
Dear Evergreen Shareholders,
We are pleased to provide the Evergreen Southern State Municipal Bond Funds
annual report, which covers the twelvemonth period ended August 31, 2000.
[PHOTO]
William M. Ennis
President and CEO
U.S. Bond Markets
Experience Volatility
The bond market environment has suffered a great deal of volatility and
unpredictability for the past twelve months as fixed income markets were hit by
rising interest rates and falling bond prices. Potential inflation threats,
including rising wage costs and higher energy prices, prompted the Federal
Reserve Board to take an aggressive stance with respect to its interest rate
policy, raising rates six times during the period. In addition, the U.S.
Treasury's announcement of a plan to curtail new and existing supplies of
long-term government bonds led investors to seek longer-term issues in
anticipation of possible shortages. These factors are indicative of an abnormal
investment environment where longer-term bonds paid lower rates than short-term
bonds, this is also known as an "inverted yield curve". Amidst this volatile
environment, we still believe that bonds are relatively attractive over the long
term.
We believe that sound investing is about taking steps to meet your long-term
financial needs and goals. We remind you to take advantage of your financial
advisor's expertise to develop and refine a financial plan that will enable you
to meet your objectives. Evergreen Funds offers a broad mix of stock, bond and
money market funds that could make it simple for you to choose the most
appropriate for your portfolio.
Website Enhancements
Please visit our enhanced website, evergreen-funds.com, for more information
about Evergreen Funds. The site offers an array of helpful information including
an investment education center, interactive calculators to assist your
investment planning and general information about Evergreen Funds.
Thank you for your continued investment in Evergreen Funds.
Sincerely,
/s/ William M. Ennis
William M. Ennis
President and CEO
Evergreen Investment Company, Inc.
1
<PAGE>
EVERGREEN
Florida High Income Municipal Bond Fund
Fund at a Glance as of August 31, 2000
Portfolio
Characteristics
Total Net Assets $403,191,569
Average Credit Quality BBB-
Effective Maturity 20.0 years
Average Duration 7.8 years
CURRENT INVESTMENT STYLE(1)
[STYLEBOX]
Morningstar's Style Box is based on a portfolio date as of 8/31/2000.
The Fixed-Income Style Box placement is based on a fund's average effective
maturity or duration and the average credit rating of the bond portfolio.
(1)Source: Morningstar, Inc.
(2)Past performance is no guarantee of future results. The investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost. The performance of each class
may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. Performance includes the reinvestment of
income dividends and capital gain distributions.
Historical performance shown for Classes B, C, and Y prior to their inception is
based on the performance of Class A, the original class offered. These
historical returns for Classes B, C, and Y have not been adjusted to reflect the
effect of each Class' 12b-1 fees. These fees are 0.25% for Class A and 1.00% for
Classes B and C. Class Y does not pay a 12b-1 fee. If these fees had been
reflected, returns for Classes B and C would have been lower while returns for
Class Y would have been higher. The advisor is waiving a portion of its advisory
fee. Had the fee not been waived, the returns would have been lower.
Funds that invest in high yield, lower-rated bonds may contain more risks due to
the increased possibility of default.
Funds that concentrate their investments in a single state may face increased
risk of price fluctuation over more diversified funds due to adverse
developments within that state.
Class Y shares are available to institutional shareholders, Evergreen
shareholders prior to January 1995, and shareholders of record prior to October
12, 1990 and any Evergreen Investment Trusts which existed at that time.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
All data is as of 8/31/2000 and subject to change.
PERFORMANCE AND RETURNS/2/
<TABLE>
<CAPTION>
Portfolio Inception Date: 6/17/1992 Class A Class B Class C Class Y
Class Inception Date 6/17/1992 7/10/1995 3/6/1998 9/20/1995
<S> <C> <C> <C> <C>
Average Annual Returns*
1 year with sales charge -3.23% -3.98% -1.10% n/a
1 year w/o sales charge 1.57% 0.81% 0.81% 1.83%
5 years 4.40% 4.31% 5.03% 5.69%
Since Portfolio Inception 5.88% 6.01% 6.27% 6.67%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
30-day SEC yield 5.50% 5.03% 5.01% 6.03%
Taxable Equivalent Yield** 9.11% 8.33% 8.29% 9.98%
12-month income
distributions per share $ 0.59 $ 0.51 $ 0.51 $ 0.62
</TABLE>
* Adjusted for maximum applicable sales charge.
** Assumes maximum 39.6% federal tax rate. Results for investors subject to
lower tax rates would not be as advantageous.
The Fund's yield may fluctuate, and there can be no guarantee that the Fund
will achieve its objective or any particular tax-exempt yield. Income may be
subject to federal alternative minimum tax.
LONG TERM GROWTH
[GRAPH]
<TABLE>
<CAPTION>
Evergreen FL High Income Muni A Lehman Brothers Municipals Consumer Price Index - US
<S> <C> <C> <C>
6/17/92 9,525 10,000 10,000
8/31/93 11,038 11,444 10,328
8/31/94 11,259 11,460 10,628
8/31/95 12,269 12,476 10,906
8/31/96 13,059 13,129 11,220
8/31/97 14,466 14,342 11,469
8/31/98 15,759 15,583 11,655
8/31/99 15,735 15,668 11,919
8/31/00 15,984 16,723 12,313
</TABLE>
Comparison of a $10,000 investment in Evergreen Florida High Income Municipal
Bond Fund, Class A shares(2), versus a similar investment in the Lehman Brothers
Municipal Bond Index (LBMBI) and the Consumer Price Index (CPI).
The LBMBI is an unmanaged market index and does not include transaction costs
associated with buying and selling securities or any mutual fund expenses.
The CPI is a commonly used measure of inflation and does not represent an
investment return. It is not possible to invest directly in an index.
2
<PAGE>
EVERGREEN
Florida High Income Municipal Bond Fund
Fund at a Glance as of August 31, 2000
Portfolio Management
--------------------
[PHOTO]
Richard K. Marrone
Tenure: January 1995
Evergreen Florida High Income Municipal Bond Fund Class A shares returned 1.57%
for the twelve-month period ended August 31, 2000. The Fund's return does not
reflect the effects of a sales charge. The Fund's performance lagged the average
return of 4.86% produced by the 64 Florida municipal debt funds followed by
Lipper, Inc. Lipper, Inc. is an independent monitor of mutual fund performance.
The Lehman Brothers Municipal Bond Index returned 6.77% for the same period. We
attribute the difference to the Fund's emphasis on maximizing yield and income,
versus total return.
PORTFOLIO COMPOSITION
(as a percentage of 8/31/2000 net assets)
[GRAPHIC]
Community Development -- 24.6%
Housing -- 19.3%
Industrial Development Revenue -- 16.3%
Continuing Care Retirement Community -- 11.9%
Water & Sewer -- 5.9%
Special Tax -- 4.0%
Public Facilities -- 3.8%
Education -- 3.0%
Hospital -- 3.0%
Utility -- 2.4%
Other -- 5.8%
After weathering Y2K concerns and rising interest rates in the first half of the
period, municipal bond investors ended the fiscal year with extremely positive
market conditions. The Federal Reserve Board's stricter monetary policy
successfully slowed the economy from its potentially excessive pace in the
second half of 1999 and early 2000. By mid-2000, the slower, but still steady
growth had calmed investors' fears about future inflation. With the exception of
rising oil prices, inflation remained low and at the same time, supply and
demand factors were favorable. Supply was limited, particularly for high yield
bonds and demand was steady. The economy's health resulted in stronger municipal
balance sheets, prompting ratings upgrades for many tax-exempt credits. In fact,
Moody's Investor Services, a major bond rating agency, reported 14 rating
upgrades for every rating downgrade in 2000, year-to-date through August 31,
2000. Prices in the tax-exempt market moved higher; and in the final months of
the Fund's fiscal year, municipal bonds outperformed their taxable counterparts.
PORTFOLIO QUALITY
(as a percentage of 8/31/2000 portfolio assets)
[GRAPHIC]
AAA -- 4.2%
A -- 3.1%
BBB -- 9.1%
BB -- 1.6%
B -- 0.2%
Not Rated-- 81.8%
3
<PAGE>
EVERGREEN
Florida High Income Municipal Bond Fund
Fund at a Glance as of August 31, 2000
The Fund's investment strategy focused on bonds with higher coupons and shorter
maturities, which, in addition to building income, increased price stability. We
emphasized bonds with 10-17 year maturities. In our opinion, bonds in this range
provided the most attractive relative value. We also boosted yield through "tax
loss selling", a strategy that takes the Fund's gains and losses into account,
and depending upon the situation, enables the Fund to sell bonds with low book
yields and replace them at higher yields and more attractive prices. As of
August 31, 2000, the Fund's average rating was BBB-, its average duration was
7.8 years and its effective maturity was 20 years. Duration measures a fund's
sensitivity to changes in interest rates. Lengthening duration increases
sensitivity to interest rate changes; and conversely, shortening duration
enhances price stability.
We believe the investment environment will stay relatively unchanged over the
next few months. Higher interest rates appear to have slowed the economy, and
inflation, with the exception of oil, continues to be low. We think the Federal
Reserve Board will hold rates steady as it monitors the effects of its prior
policy and watches oil prices to see if their higher level translates into
higher inflation. Another important factor contributing to the market's positive
tone has been the ongoing surplus in the federal budget. The surplus reduced the
supply of longer-term bonds, this year, pushing yields significantly lower, and
we look forward to that situation continuing.
We are optimistic about market conditions going forward. Declining interest
rates can be a double-edged sword for the fixed-income investor. Although bond
prices rise as rates move lower, yields fall. In that environment, mutual funds
can benefit from the "lag effect" of holding older, higher-yielding bonds that
buoy a fund's yield. With the Fund's ongoing emphasis on income and yield, we
think the Fund should be well-positioned to help protect returns in the months
ahead.
4
<PAGE>
EVERGREEN
Florida Municipal Bond Fund
Fund at a Glance as of August 31, 2000
Portfolio
Characteristics
Total Net Assets 531,432,956
Average Credit Quality AA+
Effective Maturity 12.4 years
Average Duration 5.9 years
CURRENT INVESTMENT STYLE/1/
[GRAPHIC]
Morningstar's Style Box is based on a portfolio date as of 8/31/2000.
The Fixed-Income Style Box placement is based on a fund's average effective
maturity or duration and the average credit rating of the bond portfolio.
(1) Source: Morningstar, Inc.
(2) Past performance is no guarantee of future results. The investment return
and principal value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. Performance includes the reinvestment of
income dividends and capital gain distributions.
Historical performance shown for Classes B, C, and Y prior to their inception is
based on the performance of Class A, the original class offered. These
historical returns for Classes B, C, and Y have not been adjusted to reflect the
effect of each Class' 12b-1 fees. These are 0.25% for Class A and 1.00% for
Classes B and C. Class Y does not pay a 12b-1 fee. If these fees had been
reflected, returns for Classes B and C would have been lower while returns for
Class Y would have been higher. The advisor is waiving a portion of its advisory
fee for the Fund and reimbursing a portion of the 12b-1 expenses for Class A.
Had the fee not been waived or expenses reimbursed, the returns would have been
lower.
Funds that invest in high yield, lower-rated bonds may contain more risks due to
the increased possibility of default.
Funds that concentrate their investments in a single state may face increased
risk of price fluctuation over more diversified funds due to adverse
developments within that state.
Class Y shares are available to institutional shareholders, Evergreen
shareholders prior to January 1995, and shareholders of record prior to October
12, 1990 and any Evergreen Investment Trusts which existed at that time.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
All data is as of 8/31/2000 and subject to change.
PERFORMANCE AND RETURNS/2/
<TABLE>
<CAPTION>
Portfolio Inception Date: 5/11/1988 Class A Class B Class C Class Y
Class Inception Date 5/11/1988 6/30/1995 1/26/1998 6/30/1995
<S> <C> <C> <C> <C>
Average Annual Returns*
1 year with sales charge -0.76% -1.66% 1.31% n/a
1 year w/o sales charge 4.22% 3.28% 3.28% 4.32%
5 years 4.17% 3.91% 4.70% 5.28%
10 years 6.59% 6.61% 6.86% 7.16%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
30-day SEC yield 4.85% 4.21% 4.21% 5.21%
Taxable Equivalent Yield** 8.03% 6.97% 6.97% 8.63%
12-month income dividends
per share $0.47 $0.38 $0.38 $0.47
12-month capital gain
distributions per share $0.03 $0.03 $0.03 $0.03
</TABLE>
* Adjusted for maximum applicable sales charge.
** Assumes maximum 39.6% federal tax rate. Results for investors subject to
lower tax rates would not be as advantageous.
The Fund's yield may fluctuate, and there can be no guarantee that the Fund
will achieve its objective or any particular tax-exempt yield. Income may be
subject to federal alternative minimum tax.
LONG TERM GROWTH
[GRAPH]
<TABLE>
<CAPTION>
FL Muni A Lehman Brothers Municipals Consumer Price Index - US
<S> <C> <C> <C>
8/31/90 9,525 10,000 10,000
8/31/91 10,776 11,179 10,380
8/31/92 12,046 12,400 10,707
8/31/93 13,545 13,944 11,003
8/31/94 13,551 13,963 11,322
8/31/95 14,702 15,201 11,619
8/31/96 15,457 15,997 11,953
8/31/97 16,858 17,476 12,219
8/31/98 18,368 18,987 12,416
8/31/99 18,169 19,091 12,698
8/31/00 18,936 20,376 13,118
</TABLE>
Comparison of a $10,000 investment in Evergreen Florida Municipal Bond Fund,
Class A shares(2), versus a similar investment in the Lehman Brothers Municipal
Bond Index (LBMBI) and the Consumer Price Index (CPI).
The LBMBI is an unmanaged market index and does not include transaction costs
associated with buying and selling securities or any mutual fund expenses.
The CPI is a commonly used measure of inflation and does not represent an
investment return. It is not possible to invest directly in an index.
5
<PAGE>
EVERGREEN
Florida Municipal Bond Fund
Fund at a Glance as of August 31, 2000
Portfolio
Management
[PHOTO]
Richard K. Marrone
Tenure: January 1997
Evergreen Florida Municipal Bond Fund's Class A Shares returned 4.22% for the
twelve-month period ended August 31, 2000. The Fund's return does not reflect
the effects of a sales charge. The Fund's performance lagged the average return
of 4.86% produced by the 64 Florida municipal debt funds followed by Lipper,
Inc. Lipper, Inc. is an independent monitor of mutual fund performance. The
Lehman Brothers Municipal Bond Index returned 6.77% for the same period. We
attribute the difference in returns to the Fund's emphasis on maximizing yield
and income, rather than total return.
PORTFOLIO COMPOSITION
(as a percentage of 8/31/2000 net assets)
[GRAPHIC]
Hospital-- 19.5%
Housing-- 14.2%
Escrow-- 10.7%
Industrial Development
Revenue-- 8.3%
Transportation-- 6.2%
Education-- 5.5%
Continuing Care Retirement
Center -- 5.4%
Water & Sewer -- 5.3%
Public Facility -- 4.4%
Other -- 20.5%
Concerns about Y2K and rising interest rates early in the period gave way to
extremely positive market conditions, as the Fund's fiscal year came to a close.
The Federal Reserve Board's tighter monetary policy in the second half of 1999
and early part of 2000 harnessed what many investors believed was potentially
excessive economic growth. By mid-2000, slower, but solid economic growth had
emerged, calming investors' fears about future inflation. With the exception of
rising oil prices, inflation remained low and at the same time, supply and
demand factors were favorable. Limited supply and steady demand for municipal
bonds supported prices and in the final months of the Fund's fiscal year,
municipal bonds outperformed their taxable counterparts.
Our investment strategy focused on bonds with higher coupons and shorter
maturities, which in addition to building income, enhanced price stability.
Specifically, we emphasized bonds with 10-17 year maturities, because in our
opinion, they provided the most attractive relative value. We also boosted yield
through "tax loss selling"--a strategy that takes the Fund's gains and losses
into account. In certain situations, bonds with low book yields can be sold and
replaced at higher yields and lower prices. As of August 31, 2000, the Fund's
average rating was AA+, its effective maturity was 12.4 years and its average
duration stood at 5.9 years. Duration measures a fund's sensitivity to changes
in interest rates. Lengthening duration increases sensitivity to interest rate
changes and conversely, shortening duration improves price stability.
6
<PAGE>
EVERGREEN
Florida Municipal Bond Fund
Fund at a Glance as of August 31, 2000
PORTFOLIO QUALITY
(as a percentage of 8/31/2000 portfolio assets)
[GRAPHIC]
AAA -- 44.6%
AA -- 10.3%
A -- 7.8%
BBB -- 11.8%
Not Rated-- 25.5%
We expect the investment environment to stay relatively unchanged over the next
few months. With the economy growing at a slower, but still solid pace and
inflation low, we think the Federal Reserve Board will hold interest rates
steady. We think the Board will keep a watchful eye on inflation, though, in
light of the high and rising level of oil prices. Supply and demand factors
should remain favorable for investors, particularly with the ongoing surplus in
the federal budget. The surplus enabled the government to reduce the supply of
longer-term bonds this year, driving yields significantly lower. We look forward
to that situation continuing.
Purchased when rates were higher, higher-yielding bonds can buoy a fund's yield.
With the Fund's ongoing emphasis on income and yield, and anticipated positive
market conditions, we are optimistic the Fund may generate solid returns in the
months ahead.
7
<PAGE>
EVERGREEN
Georgia Municipal Bond Fund
Fund at a Glance as of August 31, 2000
Portfolio
Characteristics
---------------
Total Net Assets $ 83,538,796
------------------------------------------------------------------
Average Credit Quality AA
------------------------------------------------------------------
Effective Maturity 12.8 years
------------------------------------------------------------------
Average Duration 7.1 years
------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
--------------------------------------------------------------------------------
[STYLEBOX APPEARS HERE]
Morningstar's Style Box is based on a portfolio date as of 8/31/2000.
The Fixed-Income Style Box placement is based on a fund's average effective
maturity or duration and the average credit rating of the bond portfolio.
/1/ Source: Morningstar, Inc.
/2/ Past performance is no guarantee of future results. The investment return
and principal value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. Performance includes the reinvestment of
income dividends and capital gain distributions.
Historical performance shown for Class Y prior to its inception is based on the
performance of Class A, one of the original classes offered along with Class B.
The historical returns for Class Y include the effect of the 0.25% 12b-1 fee
applicable to Class A. Class Y does not pay a 12b-1 fee. If these fees had not
been reflected, returns for Class Y would have been higher. Class B pays a 12b-1
fee of 1.00%. The advisor is waiving a portion of its advisory fee. Had the fee
not been waived, the returns would have been lower.
Funds that invest in high yield, lower-rated bonds may contain more risks due to
the increased possibility of default.
Funds that concentrate their investments in a single state may face increased
risk of price fluctuation over more diversified funds due to adverse
developments within that state.
Class Y shares are available to institutional shareholders, Evergreen
shareholders prior to January 1995, and shareholders of record prior to October
12, 1990 and any Evergreen Investment Trusts which existed at that time.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
All data is as of 8/31/2000 and subject to change.
--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/2/
--------------------------------------------------------------------------------
Portfolio Inception Date: 7/2/1993 Class A Class B Class Y
Class Inception Date 7/2/1993 7/2/1993 2/28/1994
--------------------------------------------------------------------------------
Average Annual Returns*
--------------------------------------------------------------------------------
1 year with sales charge -0.09% -0.85% n/a
--------------------------------------------------------------------------------
1 year w/o sales charge 4.92% 4.14% 5.18%
--------------------------------------------------------------------------------
5 years 4.73% 4.63% 6.01%
--------------------------------------------------------------------------------
Since Portfolio Inception 4.04% 4.02% 4.99%
--------------------------------------------------------------------------------
Maximum Sales Charge 4.75% 5.00% n/a
Front End CDSC
--------------------------------------------------------------------------------
30-day SEC yield 4.58% 4.07% 5.07%
--------------------------------------------------------------------------------
Taxable Equivalent Yield** $ 7.58% $ 6.74% $ 8.39%
--------------------------------------------------------------------------------
12-month distributions per share $ 0.49 $ 0.42 $ 0.51
--------------------------------------------------------------------------------
* Adjusted for maximum applicable sales charge.
** Assumes maximum 39.6% federal tax rate. Results for investors subject to
lower tax rates would not be as advantageous.
The Fund's yield may fluctuate, and there can be no guarantee that the Fund will
achieve its objective or any particular tax-exempt yield. Income may be subject
to federal alternative minimum tax.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Evergreen GA Muni Bond A Lehman Brothers Municipals Consumer Price Index - US
<S> <C> <C> <C>
7/2/93 9,525 10,000 10,000
8/31/94 9,337 10,236 10,319
8/31/95 10,046 11,143 10,589
8/31/96 10,670 11,727 10,893
8/31/97 11,602 12,811 11,136
8/31/98 12,726 13,919 11,316
8/31/99 12,660 13,995 11,572
8/31/00 13,287 14,937 11,955
</TABLE>
Comparison of a $10,000 investment in Evergreen Georgia Municipal Bond Fund,
Class A shares/2/, versus a similar investment in the Lehman Brothers Municipal
Bond Index (LBMBI) and the Consumer Price Index (CPI).
The LBMBI is an unmanaged market index and does not include transaction costs
associated with buying and selling securities or any mutual fund expenses.
The CPI is a commonly used measure of inflation and does not represent an
investment return. It is not possible to invest directly in an index.
8
<PAGE>
EVERGREEN
Georgia Municipal Bond Fund
Fund at a Glance as of August 31, 2000
Portfolio
Management
---------------------
Charles Jeanne, CFA
Tenure: November 1997
Evergreen Georgia Municipal Bond Fund's Class A Shares returned 4.92% for the
twelve-month period ended August 31, 2000. The Fund's return does not reflect
the effect of a sales charge. The Fund's performance lagged the 6.77% return of
its benchmark, the Lehman Brothers Municipal Bond Index.
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
--------------------------------------------------------------------------------
(as a percentage of 8/31/2000 net assets)
[GRAPH]
General Obligation --
Local -- 19.0%
Water & Sewer -- 15.8%
Hospital -- 15.3%
Public Facility -- 9.4%
Industrial Development Revenue -- 9.3%
Continuing Care Retirement Center -- 6.0%
Housing -- 4.6%
Electric Revenue -- 4.2%
Airports -- 4.0%
Other -- 12.4%
Municipal bond investors benefited from an improving economic and interest rate
environment over the past twelve months, but were continually challenged by
limited supply. The first half of the fiscal period was characterized by tighter
Federal Reserve Board policy, implemented to halt potentially excessive economic
growth, and Y2K concerns. By mid-2000, however, higher interest rates had
successfully slowed the economy, cooling growth to a slower, yet still solid
pace. With the exception of oil prices, inflation remained low. The economy's
sound health came with a double-edged sword for investors, however. The higher
tax revenues that accompanied stronger growth enabled many municipalities to
finance projects without issuing bonds. Supply became increasingly limited,
although demand for municipal bonds stayed steady. While the combination lent
support to bond prices, the lower supply challenged investors to find an ample
selection of bonds with the characteristics they sought. Higher yielding bonds
performed particularly well, as investors stretched for yield in a declining
interest rate environment. As their prices rose, the "yield premiums" provided
by lower-rated bonds over their higher-rated counterparts declined, and
lower-rated bonds outperformed bonds with higher ratings.
The Fund's investment strategies focused on maximizing yield, income and price
stability. We emphasized bond structure throughout the fiscal year, investing in
"cushion bonds", which have higher coupons and are less sensitive to interest
rate changes. These bonds enhanced price stability when interest rates rose.
While we continued to select bonds with higher coupons, later in the period we
targeted bonds with 12-18 year maturities and 8-10 year call dates. In the
high-grade market, we primarily invested in essential service and general
obligation bonds, which increased the Fund's potential for price appreciation
when interest rates fell. We also added to the Fund's holdings in both
industrial development revenue bonds and housing bonds--two sectors that have
historically tended to provide higher yields. Finally, we boosted the Fund's
yield by selectively engaging in "tax loss selling". This strategy enables the
Fund to sell bonds with lower book yields and replace them at higher yields and
more attractive prices, depending
9
<PAGE>
EVERGREEN
Georgia Municipal Bond Fund
Fund at a Glance as of August 31, 2000
upon the security's gain and loss situation. As of August 31, 2000, the Fund's
average rating was "AA", its effective maturity was 12.8 years and its average
duration stood at 7.1 years. Duration measures a fund's sensitivity to changes
in interest rates. Lengthening duration increases interest rate sensitivity and
conversely, shortening duration reinforces price stability.
--------------------------------------------------------------------------------
PORTFOLIO QUALITY
--------------------------------------------------------------------------------
(as a percentage of 8/31/2000 porfolio assets)
[GRAPH]
AAA -- 53.9%
AA -- 13.7%
A -- 6.4%
BBB -- 10.7%
Not Rated-- 15.3%
We expect the investment environment to stay relatively unchanged over the next
few months. We believe interest rates should move within a fairly narrow range,
perhaps moving modestly lower, as the Federal Reserve Board monitors the results
of their prior rate hikes and keeps a close eye on how higher oil prices have
affected inflation. In this environment, we intend to continue our focus on
maximizing yield, income and price stability. We are optimistic that supply will
increase due to seasonal factors, expanding the availability of bonds with the
characteristics we seek. The combination of these factors should bode well for
returns in the months ahead.
10
<PAGE>
EVERGREEN
Maryland Municipal Bond Fund
Fund at a Glance as of August 31, 2000
Portfolio
Characteristics
---------------
Total Net Assets $ 43,528,963
----------------------------------
Average Credit Quality AA-
----------------------------------
Effective Maturity 12.6 years
----------------------------------
Average Duration 6.2 years
----------------------------------
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
--------------------------------------------------------------------------------
[STYLEBOX]
Morningstar's Style Box is based on a portfolio date as of 8/31/2000.
The Fixed-Income Style Box placement is based on a fund's average effective
maturity or duration and the average credit rating of the bond portfolio.
/1/ Source: Morningstar, Inc.
/2/ Past performance is no guarantee of future results. The investment return
and principal value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. Performance includes the reinvestment of
income dividends and capital gain distributions.
Historical performance shown for Classes B and C prior to their inception is
based on the performance of Class Y, one of the original classes offered along
with Class A. These historical returns for Classes B and C have not been
adjusted to reflect the effect of each Class' 12b-1 fees. These fees are 0.25%
for Class A and 1.00% for Classes B and C. Class Y does not pay a 12b-1 fee. If
these fees had been reflected, returns for Classes B and C would have been
lower. The advisor is waiving a portion of its advisory fee. Had the fee not
been waived, the returns would have been lower.
Funds that concentrate their investments in a single state may face increased
risk of price fluctuation over more diversified funds due to adverse
developments within that state.
Class Y shares are available to institutional shareholders, Evergreen
shareholders prior to January 1995, and shareholders of record prior to October
12, 1990 and any Evergreen Investment Trusts which existed at that time.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
All data is as of 8/31/2000 and subject to change.
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/2/
--------------------------------------------------------------------------------------------------
Portfolio Inception Date: 10/30/1990 Class A Class B Class C Class Y
Class Inception Date 10/30/1990 3/27/1998 12/23/1998 10/30/1990
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Average Annual Returns*
--------------------------------------------------------------------------------------------------
1 year with sales charge -0.25% -1.03% 1.96% n/a
--------------------------------------------------------------------------------------------------
1 year w/o sales charge 4.74% 3.96% 3.96% 5.00%
--------------------------------------------------------------------------------------------------
5 years 2.90% 3.24% 3.76% 4.16%
--------------------------------------------------------------------------------------------------
Since Portfolio Inception 4.72% 5.14% 5.26% 5.44%
--------------------------------------------------------------------------------------------------
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
--------------------------------------------------------------------------------------------------
30-day SEC Yield 4.39% 3.88% 3.88% 4.87%
--------------------------------------------------------------------------------------------------
Taxable Equivalent Yield** $ 7.27% $ 6.42% $ 6.42% $ 8.06%
--------------------------------------------------------------------------------------------------
12-month distributions per share $ 0.49 $ 0.41 $ 0.41 $ 0.52
--------------------------------------------------------------------------------------------------
</TABLE>
* Adjusted for maximum applicable sales charge.
** Assumes maximum 39.6% federal tax rate. Results for investors subject to
lower tax rates would not be as advantageous.
The Fund's yield may fluctuate, and there can be no guarantee that the Fund
will achieve its objective or any particular tax-exempt yield. Income may be
subject to federal alternative minimum tax
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Evergreen MD Muni Bd A Lehman Brothers Municipals Consumer Price Index - US
<S> <C> <C> <C>
10/30/90 9,525 10,000 10,000
8/31/91 10,032 10,974 10,232
8/31/92 10,914 12,171 10,554
8/31/93 12,224 13,687 10,846
8/31/94 12,129 13,707 11,161
8/31/95 13,005 14,922 11,453
8/31/96 13,238 15,703 11,783
8/31/97 14,098 17,155 12,045
8/31/98 15,081 18,638 12,240
8/31/99 15,034 18,740 12,517
8/31/00 15,746 20,001 12,931
</TABLE>
Comparison of a $10,000 investment in Evergreen Maryland Municipal Bond Fund,
Class A shares/2/, versus a similar investment in the Lehman Brothers Municipal
Bond Index (LBMBI) and the Consumer Price Index (CPI).
The LBMBI is an unmanaged market index and does not include transaction costs
associated with buying and selling securities or any mutual fund expenses.
The CPI is a commonly used measure of inflation and does not represent an
investment return. It is not possible to invest directly in an index.
11
<PAGE>
EVERGREEN
Maryland Municipal Bond Fund
Fund at a Glance as of August 31, 2000
Portfolio
Management
-------------------
Charles Jeanne, CFA
Tenure: March 1998
Evergreen Maryland Municipal Bond Fund's Class A Shares returned 4.74% for the
twelve-month period ended August 31, 2000. The Fund's return does not reflect
the effect of a sales charge. The Fund's performance lagged the 6.77% return of
its benchmark, the Lehman Brothers Municipal Bond Index. We attribute the
difference to the Fund's emphasis on yield, income and price stability, versus
total return.
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
--------------------------------------------------------------------------------
(as a percentage of 8/31/2000 net assets)
[GRAPH]
Water & Sewer -- 15.9%
Housing -- 15.2%
General Obligations - Local -- 10.7%
Industrial Development Revenue -- 10.7%
Continuing Care Retirement Community -- 7.5%
Transportation -- 7.1%
Hospital -- 5.8%
Education -- 5.1%
Lease -- 5.0%
Other -- 17.0%
Municipal bond investors experienced two different market environments, during
the fiscal year. As the period opened, investors faced Y2K concerns, tight
supply, heavy cash outflows and restricted market liquidity. Interest rates were
rising as the Federal Reserve Board tried to slow potentially excessive economic
growth and halt future inflation. Market conditions improved dramatically in the
second half of the fiscal year, however, giving a boost to tax-exempt bond
prices. Higher rates cooled economic growth to a slower, but still solid pace
and inflation, with the exception of oil prices, remained low. Supply and demand
factors also were favorable. While demand remained steady, bond supply was
limited as the economy's sound growth translated into higher tax revenues and
healthier municipal balance sheets. Several widely anticipated bond deals for
the State of Maryland were not brought to market because the state was flush
with cash. The economy's strength also contributed to wealthier coffers and less
supply on the federal level, sending longer-term interest rates sharply lower.
Prices rose as the U.S. government's budget surplus enabled the Treasury to buy
back a sizeable amount of longer-term securities and reduce the size of future
auctions.
The Fund's investment strategies focused on building yield, income and
liquidity; and enhancing price stability. We emphasized bond structure
throughout the fiscal year, particularly selecting securities with higher
coupons. In the first half of the period, we sought bonds with shorter call
dates to reinforce price stability in the rising interest rate environment. In
the second half of the year, we sold bonds with lower coupons and shorter call
dates, replacing them with securities carrying higher coupons and when
available, non-callable bonds. We also selected bonds with call dates in the
2008-2010 range. This strategy significantly increased the Fund's liquidity. As
of August 31, 2000, the Fund's average rating was "AA-", its effective maturity
was 12.6 years and its average duration stood at 6.2 years. Duration measures a
fund's sensitivity to interest rate changes. Lengthening duration increases a
fund's sensitivity to changes in interest rates and conversely, shortening
duration enhances price stability.
12
<PAGE>
EVERGREEN
Maryland Municipal Bond Fund
Fund at a Glance as of August 31, 2000
--------------------------------------------------------------------------------
PORTFOLIO QUALITY
--------------------------------------------------------------------------------
(as a percentage of 8/31/2000 portfolio assets)
[GRAPH]
AAA -- 23.0%
AA -- 19.1%
A -- 15.6%
BBB -- 4.7%
Not Rated-- 37.6%
Looking ahead, we expect a continuation of many of the trends that have been
positive for municipal bonds over the past few months. We believe the economy
should remain sound and supply should be limited. Although we are keeping a
close eye on oil prices, we believe they could play less of a role in pushing
inflation higher than they have in the past. In our opinion, the higher level of
oil prices could trigger a resurgence in alternative energy sources, such as
solar energy or natural gas, as well as greater U.S. oil exploration efforts. In
this environment, we intend to continue our focus on building yield, income and
liquidity, while reinforcing price stability.
13
<PAGE>
EVERGREEN
North Carolina Municipal Bond Fund
Fund at a Glance as of August 31, 2000
Portfolio
Characteristics
---------------
Total Net Assets $ 275,908,442
--------------------------------------------------------------
Average Credit Quality AA-
--------------------------------------------------------------
Effective Maturity 12.1 years
--------------------------------------------------------------
Average Duration 6.3 years
--------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
--------------------------------------------------------------------------------
[STYLEBOX]
Morningstar's Style Box is based on a portfolio date as of 8/31/2000.
The Fixed-Income Style Box placement is based on a fund's average effective
maturity or duration and the average credit rating of the bond portfolio.
/1/ Source: Morningstar, Inc.
/2/ Past performance is no guarantee of future results. The investment return
and principal value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. Performance includes the reinvestment of
income dividends and capital gain distributions.
Historical performance shown for Class Y prior to its inception is based on the
performance of Class A, one of the original classes offered along with Class B.
The historical returns for Class Y include the effect of the 0.25% 12b-1 fee
applicable to Class A. Class Y does not pay a 12b-1 fee. If these fees had not
been reflected, returns for Class Y would have been higher. Class B pays a 12b-1
fee of 1.00%. The advisor is waiving a portion of its advisory fee. Had the fee
not been waived, the returns would have been lower.
Funds that invest in high yield, lower-rated bonds may contain more risks due to
the increased possibility of default.
Funds that concentrate their investments in a single state may face increased
risk of price fluctuation over more diversified funds due to adverse
developments within that state.
Class Y shares are available to institutional shareholders, Evergreen
shareholders prior to January 1995, and shareholders of record prior to October
12, 1990 and any Evergreen Investment Trusts which existed at that time.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
All data is as of 8/31/2000 and subject to change.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/2/
---------------------------------------------------------------------------------
Portfolio Inception Date: 1/11/1993 Class A Class B Class Y
Class Inception Date 1/11/1993 1/11/1993 2/28/1994
---------------------------------------------------------------------------------
<S> <C> <C> <C>
Average Annual Returns*
---------------------------------------------------------------------------------
1 year with sales charge -1.08% -1.81% n/a
---------------------------------------------------------------------------------
1 year w/o sales charge 3.87% 3.10% 4.14%
---------------------------------------------------------------------------------
5 years 4.29% 4.19% 5.58%
---------------------------------------------------------------------------------
Since Portfolio Inception 4.52% 4.47% 5.42%
---------------------------------------------------------------------------------
Maximum Sales Charge 4.75% 5.00% n/a
Front End CDSC
---------------------------------------------------------------------------------
30-day SEC yield 4.74% 4.23% 5.22%
---------------------------------------------------------------------------------
Taxable Equivalent Yield** 7.85% 7.00% 8.64%
---------------------------------------------------------------------------------
12-month income distributions per share $0.50 $0.43 $0.53
---------------------------------------------------------------------------------
12-month capital gains distributions
per share $0.06 $0.06 $0.06
---------------------------------------------------------------------------------
</TABLE>
* Adjusted for maximum applicable sales charge.
** Assumes maximum 39.6% federal tax rate. Results for investors subject to
lower tax rates would not be as advantageous.
The Fund's yield may fluctuate, and there can be no guarantee that the Fund
will achieve its objective or any particular tax-exempt yield. Income may be
subject to federal alternative minimum tax.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
Evergreen NC Muni Bond A Lehman Brothers Municipals Consumer Price Index - US
<S> <C> <C> <C>
1/11/93 9,525 10,000 10,000
8/31/93 10,297 10,948 10,204
8/31/94 9,924 10,963 10,500
8/31/95 10,818 11,935 10,775
8/31/96 11,383 12,560 11,085
8/31/97 12,420 13,721 11,332
8/31/98 13,619 14,908 11,515
8/31/99 13,494 14,990 11,776
8/31/00 14,016 15,998 12,166
</TABLE>
Comparison of a $10,000 investment in Evergreen North Carolina Municipal Bond
Fund, Class A shares/2/, versus a similar investment in the Lehman Brothers
Municipal Bond Index (LBMBI) and the Consumer Price Index (CPI).
The LBMBI is an unmanaged market index and does not include transaction costs
associated with buying and selling securities or any mutual fund expenses.
The CPI is a commonly used measure of inflation and does not represent an
investment return. It is not possible to invest directly in an index.
14
<PAGE>
EVERGREEN
North Carolina Municipal Bond Fund
Fund at a Glance as of August 31, 2000
Portfolio
Management
------------------
[GRAPH]
Richard K. Marrone
Tenure: January 1993
Evergreen North Carolina Municipal Bond Fund's Class A Shares returned 3.87% for
the twelve-month period ended August 31, 2000. The Fund's return does not
reflect the effect of a sales charge. The Fund's performance lagged the average
return of 5.21% produced by the 40 North Carolina municipal debt funds followed
by Lipper, Inc. Lipper, Inc. is an independent monitor of mutual fund
performance. The Lehman Brothers Municipal Bond Index returned 6.77% for the
same period. We attribute the difference to the Fund's emphasis on yield and
income, versus total return.
After weathering Y2K concerns and rising interest rates in the first half of the
Fund's fiscal year, municipal bond investors closed the period with extremely
positive market conditions. The Federal Reserve Board pushed interest rates
higher in the second half of 1999 and the early part of 2000, curbing the
economy's potentially excessive strength and calming investors' concerns about
future inflation. By mid-2000, the economy was growing at a slower, but solid
pace; inflation, with the exception of oil prices, remained low, and supply and
demand factors were favorable. Supply was limited, particularly for North
Carolina municipal bonds, and demand remained steady. The combination of limited
supply and steady demand supported prices and in the final months of the Fund's
fiscal year, municipal bonds outperformed their taxable counterparts.
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
--------------------------------------------------------------------------------
(as a percentage of 8/31/2000 net assets)
[GRAPH]
Housing -- 16.4%
Electric Revenue -- 15.6%
Hospital -- 14.1%
General Obligation Local -- 13.2%
Continuing Care Retirement Community -- 5.8%
Lease -- 5.7%
Industrial Development Revenue -- 4.8%
Water & Sewer -- 3.8%
Education -- 2.8%
Other -- 17.8%
The Fund's investment strategy focused on maximizing yield, income and price
stability. We selected bonds with higher coupons and intermediate term
maturities; specifically, bonds in the 10-17 year range. In our opinion, these
bonds provided the most attractive relative value. We also boosted yield through
"tax-loss selling"--a strategy that, depending upon a portfolio's gains and
losses, enables bonds with lower book yields to be sold and replaced at higher
yields and better prices. As of August 31, 2000, the Fund's average rating was
"AA-", its effective maturity was 12.1 years and its average duration stood at
6.3 years. Duration measures a fund's sensitivity to changes in interest rates.
Lengthening duration increases sensitivity to interest rate changes and
conversely, shortening duration enhances price stability.
--------------------------------------------------------------------------------
PORTFOLIO QUALITY
--------------------------------------------------------------------------------
(as a percentage of 8/31/2000 portfolio assets)
[GRAPH]
AAA -- 38.8%
AA -- 19.7%
A -- 16.9%
BBB -- 8.3%
Not Rated-- 16.3%
15
<PAGE>
EVERGREEN
North Carolina Municipal Bond Fund
Fund at a Glance as of August 31, 2000
We expect the investment environment to remain relatively unchanged in the
months ahead. We believe the Federal Reserve Board may hold interest rates
steady, as long as the economy continues to grow at a slower, but still solid
pace and inflation remains low. Undoubtedly, though, the Board will monitor oil
prices closely, to see if the currently higher levels begin to lift inflation.
We also believe supply and demand factors will be positive for the market,
particularly with the ongoing surplus in the federal budget. The surplus enabled
the government to reduce the supply of longer-term bonds this year, driving
long-term yields significantly lower. We look forward to that situation
continuing.
In a declining rate environment, older bonds may have been purchased when rates
were higher, buoying a fund's yield. We are optimistic that the "lag
effect"--especially considering the Fund's long-term emphasis on income and
yield can serve our shareholders well in the months ahead.
16
<PAGE>
EVERGREEN
South Carolina Municipal Bond Fund
Fund at a Glance as of August 31, 2000
Portfolio
Characteristics
---------------
Total Net Assets $ 60,794,468
---------------------------------------------
Average Credit Quality AA
---------------------------------------------
Effective Maturity 13.1 years
---------------------------------------------
Average Duration 7.2 years
---------------------------------------------
CURRENT INVESTMENT STYLE/1/
[STYLEBOX]
Morningstar's Style Box is based on a portfolio date as of 8/31/2000.
The Fixed-Income Style Box placement is based on a fund's average effective
maturity or duration and the average credit rating of the bond portfolio.
/1/ Source: Morningstar, Inc.
/2/ Past performance is no guarantee of future results. The investment return
and principal value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. Performance includes the reinvestment of
income dividends and capital gains distributions.
Historical performance shown for Class Y prior to its inception is based on the
performance of Class A, one of the original classes offered along with Class B.
The historical returns for Class Y include the effect of the 0.25% 12b-1 fee
applicable to Class A. Class Y does not pay a 12b-1 fee. If these fees had not
been reflected, returns for Class Y would have been higher. Class B pays a 12b-1
fee of 1.00%. Returns reflect expense limits previously in effect, without which
returns would have been lower.
Funds that invest in high yield, lower-rated bonds may contain more risks due to
the increased possibility of default.
Funds that concentrate their investments in a single state may face increased
risk of price fluctuation over more diversified funds due to adverse
developments within that state.
Class Y shares are available to institutional shareholders, Evergreen
shareholders prior to January 1995, and shareholders of record prior to October
12, 1990 and any Evergreen Investment Trusts which existed at that time.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
All data is as of 8/31/2000 and subject to change.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/2/
Portfolio Inception Date: 1/3/1994 Class A Class B Class Y
Class Inception Date 1/3/1994 1/3/1994 2/28/1994
---------------------------------------------------------------------------------
<S> <C> <C> <C>
Average Annual Returns*
---------------------------------------------------------------------------------
1 year with sales charge 0.17% -0.60% n/a
---------------------------------------------------------------------------------
1 year w/o sales charge 5.16% 4.38% 5.42%
---------------------------------------------------------------------------------
5 years 4.66% 4.57% 5.96%
---------------------------------------------------------------------------------
Since Portfolio Inception 4.18% 4.20% 5.21%
---------------------------------------------------------------------------------
Maximum Sales Charge 4.75% 5.00% n/a
Front End CDSC
---------------------------------------------------------------------------------
30-day SEC yield 4.36% 3.84% 4.84%
---------------------------------------------------------------------------------
Taxable Equivalent Yield** 7.22% 6.36% 8.01%
---------------------------------------------------------------------------------
12-month dividends
distributions per share $ 0.46 $ 0.39 $ 0.49
---------------------------------------------------------------------------------
12-month capital gains
distributions per share $ 0.07 $ 0.07 $ 0.07
---------------------------------------------------------------------------------
</TABLE>
* Adjusted for maximum applicable sales charge.
** Assumes maximum 39.6% federal tax rate. Results for investors subject to
lower tax rates would not be as advantageous.
The Fund's yield may fluctuate, and there can be no guarantee that the Fund
will achieve its objective or any particular tax-exempt yield. Income may be
subject to federal alternative minimum tax.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
Evergreen SC Muni Bond A Lehman Brothers Municipals Consumer Price Index - US
<S> <C> <C> <C>
1/3/94 9,525 10,000 10,000
8/31/94 8,983 9,764 10,219
8/31/95 9,960 10,630 10,487
8/31/96 10,582 11,186 10,789
8/31/97 11,570 12,220 11,029
8/31/98 12,565 13,277 11,207
8/31/99 12,496 13,350 11,461
8/31/00 13,140 14,248 11,841
</TABLE>
Comparison of a $10,000 investment in Evergreen South Carolina Municipal Bond
Fund, Class A shares/2/, versus a similar investment in the Lehman Brothers
Municipal Bond Index (LBMBI) and the Consumer Price Index (CPI).
The LBMBI is an unmanaged market index and does not include transaction costs
associated with buying and selling securities or any mutual fund expenses.
The CPI is a commonly used measure of inflation and does not represent an
investment return. It is not possible to invest directly in an index.
17
<PAGE>
EVERGREEN
South Carolina Municipal Bond Fund
Fund at a Glance as of August 31, 2000
Portfolio
Management
--------------------
Charles Jeanne, CFA
Tenure: January 1997
Evergreen South Carolina Municipal Bond Fund's Class A Shares returned 5.16% for
the twelve-month period ended August 31, 2000. The Fund's return does not
reflect the effects of a sales charge. The Lehman Brothers Municipal Bond Index
returned 6.77% for the same period.
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
--------------------------------------------------------------------------------
(as a percentage of 8/31/2000 net assets)
[GRAPH]
General Obligation -
Local -- 20.1%
Hospital -- 14.5%
Water & Sewer -- 13.8%
Housing -- 12.6%
Electric Revenue -- 7.8%
Resource Recovery -- 7.5%
General Obligation - State -- 5.4%
Education -- 5.3%
Industrial Development Revenue -- 4.4%
Other -- 8.6%
Municipal bond investors benefited from an improving economic and interest rate
environment as the fiscal year progressed, but continued to be challenged by
limited supply. The Federal Reserve Board raised interest rates in the second
half of 1999 and early 2000, reigning in the potentially excessive economic
growth that could lead to future inflation. Their successful implementation of
monetary policy created a favorable environment for investors. As we approached
mid-2000, the economy had cooled to a slower, but steady rate of growth and with
the exception of oil prices, inflation remained low. The economy's sound growth
presented a double-edged sword by reducing supply, however. While municipal
balance sheets grew stronger from increased tax revenues, the supply of
tax-exempt bonds began to dwindle as municipalities financed projects without
issuing debt. Demand remained steady, pushing prices higher, but investors were
challenged to find an ample supply of bonds with the characteristics they
sought. Higher yielding bonds performed particularly well, as investors
stretched for yield in a declining interest rate environment. As their prices
rose, the "yield premiums" provided by lower-rated bonds over their higher-rated
counterparts declined, causing lower-rated bonds to outperform bonds with higher
ratings.
The Fund's investment strategies focused on maximizing yield, income and price
stability. We emphasized bond structure throughout the entire fiscal year,
investing in "cushion bonds" in the first part of the period. "Cushion bonds"
have higher coupons and are less subject to interest rate fluctuations, which
reinforced price stability when interest rates rose. We continued to emphasize
bonds with higher coupons, although later in the period we targeted bonds with
12-18 year maturities and 8-10 year call dates. In the high-grade market, we
primarily invested in essential service revenue bonds, as well as general
obligation bonds. These bonds improved the Fund's potential for price
appreciation when interest rates fell. We also added to the Fund's holdings in
both industrial development revenue bonds and housing bonds--two sectors that
tend to provide higher yields. Finally, we boosted the Fund's yield by
selectively engaging in "tax loss selling", a strategy, that depending upon the
individual security's gain or loss, enables the Fund to sell bonds with lower
book yields and replace them at higher yields and more attractive prices.
18
<PAGE>
EVERGREEN
South Carolina Municipal Bond Fund
Fund at a Glance as of August 31, 2000
As of August 31, 2000, the Fund's average rating was "AA", its effective
maturity was 13.1 years and its average duration stood at 7.2 years. Duration
measures a fund's sensitivity to changes in interest rates.
Lengthening duration increases interest rate sensitivity and conversely,
shortening duration reinforces price stability.
--------------------------------------------------------------------------------
PORTFOLIO QUALITY
--------------------------------------------------------------------------------
(as a percentage of 8/31/2000 portfolio assets)
[GRAPH]
AAA -- 52.6%
AA -- 27.2%
A -- 4.5%
BBB -- 5.8%
Not Rated-- 9.9%
We expect the investment environment to stay relatively unchanged over the next
few months, as the Federal Reserve Board monitors the results of its prior rate
hikes and keeps a close eye on how higher oil prices have affected inflation.
With a neutral monetary policy and slower, but steady economic growth, we think
interest rates could move within a narrow range and perhaps trend lower. In this
environment, we intend to continue our focus on maximizing yield, income and
price stability. We are optimistic that supply will increase due to seasonal
factors, expanding the availability of bonds with the characteristics we seek.
In our opinion, the combination of these factors bode well for tax-exempt
returns in the months ahead.
19
<PAGE>
EVERGREEN
Virginia Municipal Bond Fund
Fund at a Glance as of August 31, 2000
Portfolio
Characteristics
---------------
Total Net Assets 169,100,956
-----------------------------------
Average Credit Quality AA
-----------------------------------
Effective Maturity 14.0 years
-----------------------------------
Average Duration 6.9 years
-----------------------------------
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
--------------------------------------------------------------------------------
[STYLEBOX]
Morningstar's Style Box is based on a portfolio date as of 8/31/2000.
The Fixed-Income Style Box placement is based on a fund's average effective
maturity or duration and the average credit rating of the bond portfolio.
/1/ Source: Morningstar, Inc.
/2/ Past performance is no guarantee of future results. The investment return
and principal value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. Performance includes the reinvestment of
income dividends and capital gain distributions.
Historical performance shown for Class Y prior to its inception is based on the
performance of Class A, one of the original classes offered along with Class B.
The historical returns for Class Y include the effect of the 0.25% 12b-1 fee
applicable to Class A. Class Y does not pay a 12b-1 fee. If these fees had not
been reflected, returns for Class Y would have been higher. Class B pays a 12b-1
fee of 1.00%. Returns reflect expense limits previously in effect, without which
returns would have been lower.
Funds that invest in high yield, lower-rated bonds may contain more risks due to
the increased possibility of default.
Funds that concentrate their investments in a single state may face increased
risk of price fluctuation over more diversified funds due to adverse
developments within that state.
Class Y shares are available to institutional shareholders, Evergreen
shareholders prior to January 1995, and shareholders of record prior to October
12, 1990 and any Evergreen Investment Trusts which existed at that time.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
All data is as of 8/31/2000 and subject to change.
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/2/
--------------------------------------------------------------------------------
Portfolio Inception Date: 7/2/1993 Class A Class B Class Y
Class Inception Date 7/2/1993 7/2/1993 2/28/1994
--------------------------------------------------------------------------------
<S> <C> <C> <C>
Average Annual Returns*
--------------------------------------------------------------------------------
1 year with sales charge 0.37% -0.37% n/a
--------------------------------------------------------------------------------
1 year w/o sales charge 5.42% 4.63% 5.68%
--------------------------------------------------------------------------------
5 years 4.72% 4.62% 6.00%
--------------------------------------------------------------------------------
Since Portfolio Inception 4.30% 4.27% 5.25%
--------------------------------------------------------------------------------
Maximum Sales Charge 4.75% 5.00% n/a
Front End CDSC
--------------------------------------------------------------------------------
30-day SEC yield 4.41% 3.88% 4.88%
--------------------------------------------------------------------------------
Taxable Equivalent Yield** 7.30% 6.42% 8.08%
--------------------------------------------------------------------------------
12-month income
distributions per share 0.48 0.40 0.50
--------------------------------------------------------------------------------
12-month capital gains
distributions per share 0.02 0.02 0.02
--------------------------------------------------------------------------------
</TABLE>
* Adjusted for maximum applicable sales charge.
** Assumes maximum 39.6% federal tax rate. Results for investors subject to
lower tax rates would not be as advantageous.
The Fund's yield may fluctuate, and there can be no guarantee that the Fund
will achieve its objective or any particular tax-exempt yield. Income may be
subject to federal alternative minimum tax.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
[GRAPH]
Evergreen VA Muni Bond A Lehman Brothers Municipals Consumer Price Index - US
<S> <C> <C> <C>
7/2/93 9,525 10,000 10,000
8/31/94 9,355 10,236 10,319
8/31/95 10,228 11,143 10,589
8/31/96 10,751 11,727 10,893
8/31/97 11,723 12,811 11,136
8/31/98 12,791 13,919 11,316
8/31/99 12,822 13,995 11,572
8/31/00 13,516 14,937 11,955
</TABLE>
Comparison of a $10,000 investment in Evergreen Virginia Municipal Bond Fund,
Class A shares/2/, versus a similar investment in the Lehman Brothers Municipal
Bond Index (LBMBI) and the Consumer Price Index (CPI).
The LBMBI is an unmanaged market index and does not include transaction costs
associated with buying and selling securities or any mutual fund expenses.
TheCPI is a commonly used measure of inflation and does not represent an
investment return. It is not possible to invest directly in an index.
20
<PAGE>
EVERGREEN
Virginia Municipal Bond Fund
Fund at a Glance as of August 31, 2000
Portfolio
Management
-------------------
[PHOTO]
Charles Jeanne, CFA
Tenure: July 1993
Evergreen Virginia Municipal Bond Fund's Class A Shares returned 5.42% for the
twelve-month period ended August 31, 2000. The Fund's return does not reflect
the effects of a sales charge. The Fund's performance lagged the 6.77% return of
its benchmark, the Lehman Brothers Municipal Bond Index.
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
--------------------------------------------------------------------------------
(as a percentage of 8/31/2000 net assets)
[GRAPH]
General Obligation -- 23.8%
Housing -- 18.0%
Water & Sewer -- 12.1%
Hospital -- 7.6%
Transportation -- 6.9%
Lease -- 5.0%
Public Facilities -- 4.9%
Special Tax -- 4.4%
Education -- 3.6%
Other -- 13.7%
Municipal bond prices rose on improving market conditions as the Fund's fiscal
year progressed, although investors were challenged by limited supply throughout
the period. As the fiscal year opened, investors faced rising interest rates and
concerns about Y2K. The Federal Reserve Board raised interest rates from
mid-1999 through the early part of 2000 to dampen potentially excessive economic
strength and halt the rise of future inflation. By mid-2000, their policy
appeared to be successful. Higher interest rates had cooled the economy to a
slower, but solid rate of growth; and with the exception of oil prices,
inflation stayed low. The economy's sound growth created a double-edged sword
for investors, however, by reducing supply. Municipal balance sheets grew
stronger from increased tax revenues, enabling municipalities to finance
projects without issuing debt and causing the supply of tax-exempt bonds to
dwindle. Demand remained steady, which pushed prices higher; however, investors
often had difficulty finding an ample number of bonds with the characteristics
they sought. Bonds with higher yields performed particularly well, as investors
stretched for yield in a declining interest rate environment. As prices rose,
the "yield premiums" provided by lower-rated bonds over their higher-rated
counterparts declined, causing lower-rated bonds to outperform bonds with higher
ratings.
The Fund's investment strategies focused on maximizing yield and income, and
reinforcing price stability. We emphasized bond structure throughout the entire
fiscal year. Early in the period, we concentrated on "cushion bonds", which have
high coupons and limited price movement. These holdings enhanced price stability
when interest rates rose and bond prices fell. While we continued to emphasize
bonds with higher coupons, later in the period we targeted bonds with 12-18 year
maturities and 8-10 year call dates. These bonds improved the Fund's potential
for price appreciation when interest rates fell. In the high-grade market, we
primarily invested in essential service revenue bonds, as well as general
obligation bonds. We also added to the Fund's holdings in both industrial
development revenue bonds and housing bonds--two sectors that have historically
tended to provide higher yields. Finally, we boosted the Fund's yield by
selectively participating in "tax loss selling". "Tax loss selling" is a
strategy that takes a security's gains and losses into account, and depending
upon
21
<PAGE>
EVERGREEN
Virginia Municipal Bond Fund
Fund at a Glance as of August 31, 2000
the situation, enables the Fund to sell bonds with lower book yields and replace
them at higher yields and more attractive prices. As of August 31, 2000, the
Fund's average rating was "AA", its effective maturity was 14.0 years and its
average duration was 6.9 years. Duration measures a fund's sensitivity to
changes in interest rates. Lengthening duration increases interest rate
sensitivity and conversely, shortening duration reinforces price stability.
--------------------------------------------------------------------------------
PORTFOLIO QUALITY
--------------------------------------------------------------------------------
(as a percentage of 8/31/2000 portfolio assets)
[GRAPH]
AAA -- 34.3%
AA -- 40.5%
A -- 5.1%
BBB -- 4.6%
Not Rated-- 15.5%
We expect the investment environment to stay relatively unchanged over the next
few months, with interest rates moving within a narrow range or perhaps,
trending lower. We believe the Federal Reserve Board will adopt a "wait and see"
attitude, monitoring the effects of its prior interest rate hikes on the
economy, as well as how higher oil prices may have impacted inflation. With
interest rates and bond prices relatively stable, we intend to continue
maximizing interest and yield.
22
<PAGE>
EVERGREEN
Florida High Income Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended August 31,
------------------------------------------------
2000 1999++ 1998 1997 1996
<S> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value, beginning
of period $ 10.68 $ 11.26 $ 10.89 $ 10.42 $ 10.40
-------- -------- -------- -------- -------
Income from investment
operations
Net investment income 0.59 0.57 0.58 0.62 0.63
Net realized and unrealized
gains or losses on
securities (0.44) (0.58) 0.37 0.47 0.02
-------- -------- -------- -------- -------
Total from investment
operations 0.15 (0.01) 0.95 1.09 0.65
-------- -------- -------- -------- -------
Less distributions to
shareholders from
Net investment income (0.59) (0.57) (0.58) (0.62) (0.63)
Net realized gains 0 0 0 0 0
-------- -------- -------- -------- -------
Total distributions to
shareholders (0.59) (0.57) (0.58) (0.62) (0.63)
-------- -------- -------- -------- -------
Net asset value, end of
period $ 10.24 $ 10.68 $ 11.26 $ 10.89 $ 10.42
-------- -------- -------- -------- -------
Total return* 1.57% (0.16%) 8.94% 10.77% 6.42%
Ratios and supplemental
data
Net assets, end of period
(thousands) $212,410 $269,616 $279,079 $119,942 $76,267
Ratios to average net
assets
Expenses++ 0.87% 0.86% 0.89% 0.88% 0.85%
Net investment income 5.73% 5.10% 5.15% 5.86% 6.02%
Portfolio turnover rate 39% 29% 70% 32% 42%
</TABLE>
<TABLE>
<CAPTION>
Year Ended August 31,
-----------------------------------------------
2000 1999++ 1998 1997 1996
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value, beginning
of period $ 10.68 $ 11.26 $ 10.89 $ 10.42 $ 10.40
-------- -------- -------- ------- -------
Income from investment
operations
Net investment income 0.51 0.48 0.50 0.54 0.55
Net realized and unrealized
gains or losses
on securities (0.44) (0.58) 0.37 0.47 0.02
-------- -------- -------- ------- -------
Total from investment
operations 0.07 (0.10) 0.87 1.01 0.57
-------- -------- -------- ------- -------
Less distributions to
shareholders from
Net investment income (0.51) (0.48) (0.50) (0.54) (0.55)
Net realized gains 0 0 0 0 0
-------- -------- -------- ------- -------
Total distributions to
shareholders (0.51) (0.48) (0.50) (0.54) (0.55)
-------- -------- -------- ------- -------
Net asset value, end of
period $ 10.24 $ 10.68 $ 11.26 $ 10.89 $ 10.42
-------- -------- -------- ------- -------
Total return* 0.81% (0.91%) 8.13% 9.95% 5.63%
Ratios and supplemental data
Net assets, end of period
(thousands) $115,352 $130,259 $103,309 $63,475 $19,219
Ratios to average net assets
Expenses++ 1.62% 1.61% 1.64% 1.63% 1.59%
Net investment income 4.99% 4.34% 4.46% 5.09% 5.27%
Portfolio turnover rate 39% 29% 70% 32% 42%
</TABLE>
* Excluding applicable sales charges.
++ The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
++ Net realized gains distributions are less than $0.005 per share.
See Combined Notes to Financial Statements.
23
<PAGE>
EVERGREEN
Florida High Income Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended August 31,
-------------------------
2000 1999++ 1998 (a)
<S> <C> <C> <C>
CLASS C SHARES
Net asset value, beginning of period $10.68 $11.26 $11.11
------ ------ ------
Income from investment operations
Net investment income 0.51 0.48 0.24
Net realized and unrealized gains or losses on
securities (0.44) (0.58) 0.15
------ ------ ------
Total from investment operations 0.07 (0.10) 0.39
------ ------ ------
Less distributions to shareholders from
Net investment income (0.51) (0.48) (0.24)
Net realized gains 0 0 0
------ ------ ------
Total distributions to shareholders (0.51) (0.48) (0.24)
------ ------ ------
Net asset value, end of period $10.24 $10.68 $11.26
------ ------ ------
Total return* 0.81% (0.91%) 3.50%
Ratios and supplemental data
Net assets, end of period (thousands) $9,310 $6,749 $1,098
Ratios to average net assets
Expenses++ 1.62% 1.61% 1.65%+
Net investment income 4.98% 4.31% 4.21%+
Portfolio turnover rate 39% 29% 70%
</TABLE>
<TABLE>
<CAPTION>
Year Ended August 31,
-------------------------------------------
2000 1999++ 1998 1997 1996 (b)
<S> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value, beginning of
period $ 10.68 $ 11.26 $ 10.89 $10.42 $10.48
------- ------- ------- ------ ------
Income from investment
operations
Net investment income 0.62 0.60 0.61 0.65 0.63
Net realized and unrealized
gains or losses on securities (0.44) (0.58) 0.37 0.47 (0.06)
------- ------- ------- ------ ------
Total from investment operations 0.18 0.02 0.98 1.12 0.57
------- ------- ------- ------ ------
Less distributions to
shareholders from
Net investment income (0.62) (0.60) (0.61) (0.65) (0.63)
Net realized gains 0 0 0 0 0
------- ------- ------- ------ ------
Total distributions to
shareholders (0.62) (0.60) (0.61) (0.65) (0.63)
------- ------- ------- ------ ------
Net asset value, end of period $ 10.24 $ 10.68 $ 11.26 $10.89 $10.42
------- ------- ------- ------ ------
Total return 1.83% 0.09% 9.22% 11.04% 5.54%
Ratios and supplemental data
Net assets, end of period
(thousands) $66,120 $53,624 $29,152 $6,326 $1,970
Ratios to average net assets
Expenses++ 0.62% 0.62% 0.65% 0.63% 0.59%+
Net investment income 6.01% 5.38% 5.47% 6.08% 6.27%+
Portfolio turnover rate 39% 29% 70% 32% 42%
</TABLE>
(a) For the period from March 6, 1998 (commencement of class operations) to Au-
gust 31, 1998.
(b) For the period from September 20, 1995 (commencement of class operations)
to August 31, 1996.
* Excluding applicable sales charges.
++ The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
+ Annualized.
++ Net realized gains distributions are less than $0.005 per share.
See Combined Notes to Financial Statements.
24
<PAGE>
EVERGREEN
Florida Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended August 31,
-------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value, beginning
of period $ 9.36 $ 10.15 $ 9.98 $ 9.70 $ 9.74
-------- -------- -------- -------- --------
Income from investment
operations
Net investment income 0.47 0.46 0.48 0.51 0.54
Net realized and
unrealized gains or
losses on securities (0.09) (0.56) 0.38 0.35 (0.04)
-------- -------- -------- -------- --------
Total from investment
operations 0.38 (0.10) 0.86 0.86 0.50
-------- -------- -------- -------- --------
Less distributions to
shareholders from
Net investment income (0.47) (0.46) (0.48) (0.52) (0.54)
Net realized gains (0.03) (0.23) (0.21) (0.06) 0
-------- -------- -------- -------- --------
Total distributions to
shareholders (0.50) (0.69) (0.69) (0.58) (0.54)
-------- -------- -------- -------- --------
Net asset value, end of
period $ 9.24 $ 9.36 $ 10.15 $ 9.98 $ 9.70
-------- -------- -------- -------- --------
Total return* 4.22% (1.07%) 8.96% 9.06% 5.15%
Ratios and supplemental
data
Net assets, end of period
(thousands) $114,159 $137,101 $164,255 $105,673 $115,723
Ratios to average net
assets
Expenses++ 0.42% 0.34% 0.46% 0.74% 0.63%
Net investment income 5.08% 4.71% 4.79% 5.22% 5.46%
Portfolio turnover rate 48% 57% 64% 41% 30%
<CAPTION>
Year Ended August 31,
-------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value, beginning
of period $ 9.36 $ 10.15 $ 9.98 $ 9.70 $ 9.74
-------- -------- -------- -------- --------
Net investment income 0.38 0.37 0.38 0.42 0.44
Net realized and
unrealized gains or
losses on securities (0.09) (0.56) 0.39 0.35 (0.04)
-------- -------- -------- -------- --------
Total from investment
operations 0.29 (0.19) 0.77 0.77 0.40
-------- -------- -------- -------- --------
Income from investment
operations
Net investment income (0.38) (0.37) (0.39) (0.43) (0.44)
Net realized gains (0.03) (0.23) (0.21) (0.06) 0
-------- -------- -------- -------- --------
Total distributions to
shareholders (0.41) (0.60) (0.60) (0.49) (0.44)
-------- -------- -------- -------- --------
Net asset value, end of
period $ 9.24 $ 9.36 $ 10.15 $ 9.98 $ 9.70
-------- -------- -------- -------- --------
Less distributions to
shareholders from
Total return* 3.28% (1.97%) 7.97% 8.06% 4.17%
Ratios and supplemental
data
Net assets, end of period
(thousands) $ 46,522 $59,783 $ 66,142 $ 31,281 $ 28,849
Ratios to average net
assets
Expenses++ 1.33% 1.26% 1.36% 1.66% 1.56%
Net investment income 4.17% 3.79% 3.88% 4.29% 4.52%
Portfolio turnover rate 48% 57% 64% 41% 30%
</TABLE>
* Excluding applicable sales charges.
++The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
25
<PAGE>
EVERGREEN
Florida Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended August 31,
-------------------------
2000 1999 1998 (a)
<S> <C> <C> <C>
CLASS C SHARES
Net asset value, beginning of period $ 9.36 $10.15 $10.06
------ ------ ------
Income from investment operations
Net investment income 0.38 0.37 0.23
Net realized and unrealized gains or losses on
securities (0.09) (0.56) 0.09
------ ------ ------
Total from investment operations 0.29 (0.19) 0.32
------ ------ ------
Less distributions to shareholders from
Net investment income (0.38) (0.37) 0
Net realized gains (0.03) (0.23) (0.23)
------ ------ ------
Total distributions to shareholders (0.41) (0.60) (0.23)
------ ------ ------
Net asset value, end of period $ 9.24 $ 9.36 $10.15
------ ------ ------
Total return* 3.28% (1.97%) 3.25%
Ratios and supplemental data
Net assets, end of period (thousands) $6,594 $9,111 $8,963
Ratios to average net assets
Expenses++ 1.33% 1.26% 1.29%+
Net investment income 4.17% 3.79% 3.86%+
Portfolio turnover rate 48% 57% 64%
</TABLE>
<TABLE>
<CAPTION>
Year Ended August 31,
-----------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value, beginning
of period $ 9.36 $ 10.15 $ 9.98 $ 9.70 $ 9.74
-------- -------- -------- ------- -------
Income from investment
operations
Net investment income 0.47 0.47 0.48 0.52 0.53
Net realized and unrealized
gains or losses on
securities (0.09) (0.56) 0.39 0.35 (0.03)
-------- -------- -------- ------- -------
Total from investment
operations 0.38 (0.09) 0.87 0.87 0.50
-------- -------- -------- ------- -------
Less distributions to
shareholders from
Net investment income (0.47) (0.47) (0.49) (0.53) (0.54)
Net realized gains (0.03) (0.23) (0.21) (0.06) 0
-------- -------- -------- ------- -------
Total distributions to
shareholders (0.50) (0.70) (0.70) (0.59) (0.54)
-------- -------- -------- ------- -------
Net asset value, end of
period $ 9.24 $ 9.36 $ 10.15 $ 9.98 $ 9.70
-------- -------- -------- ------- -------
Total return 4.32% (0.99%) 9.05% 9.14% 5.22%
Ratios and supplemental data
Net assets, end of period
(thousands) $364,159 $407,474 $418,847 $24,850 $12,259
Ratios to average net assets
Expenses++ 0.33% 0.26% 0.33% 0.67% 0.57%
Net investment income 5.17% 4.79% 4.85% 5.27% 5.55%
Portfolio turnover rate 48% 57% 64% 41% 30%
</TABLE>
(a) For the period from January 26, 1998 (commencement of class operations) to
August 31, 1998.
* Excluding applicable sales charges.
++The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
+ Annualized.
See Combined Notes to Financial Statements.
26
<PAGE>
EVERGREEN
Georgia Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended August 31,
-------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value, beginning of
period $ 9.78 $ 10.35 $ 9.90 $ 9.57 $ 9.47
------- ------- ------- ------- ------
Income from investment
operations
Net investment income 0.49 0.49 0.49 0.49 0.48
Net realized and unrealized
gains or losses on securities (0.03) (0.53) 0.45 0.33 0.10
------- ------- ------- ------- ------
Total from investment operations 0.46 (0.04) 0.94 0.82 0.58
------- ------- ------- ------- ------
Less distributions to
shareholders from
Net investment income (0.49) (0.49) (0.49) (0.49) (0.48)
Net realized gains 0 (0.04) 0 0 0
------- ------- ------- ------- ------
Total distributions to
shareholders (0.49) (0.53) (0.49) (0.49) (0.48)
------- ------- ------- ------- ------
Net asset value, end of period $ 9.75 $ 9.78 $ 10.35 $ 9.90 $ 9.57
------- ------- ------- ------- ------
Total return* 4.92% (0.50%) 9.67% 8.73% 6.22%
Ratios and supplemental data
Net assets, end of period
(thousands) $ 7,055 $ 4,358 $ 3,932 $ 2,201 $1,954
Ratios to average net assets
Expenses++ 0.67% 0.51% 0.57% 0.94% 0.88%
Net investment income 5.10% 4.76% 4.81% 5.00% 4.96%
Portfolio turnover rate 41% 34% 50% 32% 21%
<CAPTION>
Year Ended August 31,
-------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value, beginning of
period $ 9.78 $ 10.35 $ 9.90 $ 9.57 $ 9.47
------- ------- ------- ------- ------
Income from investment
operations
Net investment income 0.42 0.41 0.41 0.41 0.41
Net realized and unrealized
gains or losses on securities (0.03) (0.53) 0.45 0.33 0.10
------- ------- ------- ------- ------
Total from investment operations 0.39 (0.12) 0.86 0.74 0.51
------- ------- ------- ------- ------
Less distributions to
shareholders from
Net investment income (0.42) (0.41) (0.41) (0.41) (0.41)
Net realized gains 0 (0.04) 0 0 0
------- ------- ------- ------- ------
Total distributions to
shareholders (0.42) (0.45) (0.41) (0.41) (0.41)
------- ------- ------- ------- ------
Net asset value, end of period $ 9.75 $ 9.78 $ 10.35 $ 9.90 $ 9.57
------- ------- ------- ------- ------
Total return* 4.14% (1.24%) 8.86% 7.93% 5.44%
Ratios and supplemental data
Net assets, end of period
(thousands) $12,796 $14,244 $12,559 $10,870 $9,271
Ratios to average net assets
Expenses++ 1.40% 1.26% 1.34% 1.69% 1.63%
Net investment income 4.34% 4.01% 4.06% 4.25% 4.21%
Portfolio turnover rate 41% 34% 50% 32% 21%
</TABLE>
* Excluding applicable sales charges.
++ The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
27
<PAGE>
EVERGREEN
Georgia Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended August 31,
------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value, beginning of
period $ 9.78 $ 10.35 $ 9.90 $ 9.57 $ 9.47
------- ------- ------- ------ ------
Income from investment operations
Net investment income 0.51 0.51 0.51 0.51 0.50
Net realized and unrealized gains
or losses on securities (0.03) (0.53) 0.45 0.33 0.10
------- ------- ------- ------ ------
Total from investment operations 0.48 (0.02) 0.96 0.84 0.60
------- ------- ------- ------ ------
Less distributions to
shareholders from
Net investment income (0.51) (0.51) (0.51) (0.51) (0.50)
Net realized gains 0 (0.04) 0 0 0
------- ------- ------- ------ ------
Total distributions to
shareholders (0.51) (0.55) (0.51) (0.51) (0.50)
------- ------- ------- ------ ------
Net asset value, end of period $ 9.75 $ 9.78 $ 10.35 $ 9.90 $ 9.57
------- ------- ------- ------ ------
Total return 5.18% (0.25%) 9.94% 9.00% 6.48%
Ratios and supplemental data
Net assets, end of period
(thousands) $63,689 $71,992 $67,630 $1,180 $1,620
Ratios to average net assets
Expenses++ 0.40% 0.26% 0.24% 0.69% 0.63%
Net investment income 5.34% 5.02% 5.09% 5.25% 5.21%
Portfolio turnover rate 41% 34% 50% 32% 21%
</TABLE>
++The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
28
<PAGE>
EVERGREEN
Maryland Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended August 31, Year Ended September 30,
------------------------------- ----------------------------
2000 1999 1998 (a) (b) 1997 (a) 1996 (a) 1995 (a)
<S> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $ 10.58 $ 11.16 $ 10.91 $ 10.56 $ 10.69 $ 10.17
------- ------- ------- ------- ------- -------
Income from investment
operations
Net investment income 0.49 0.47 0.36 0.37 0.38 0.40
Net realized and
unrealized gains or
losses on securities (0.01) (0.49) 0.25 0.35 (0.13) 0.54
------- ------- ------- ------- ------- -------
Total from investment
operations 0.48 (0.02) 0.61 0.72 0.25 0.94
------- ------- ------- ------- ------- -------
Less distributions to
shareholders from
Net investment income (0.49) (0.47) (0.36) (0.37) (0.38) (0.40)
Net realized gains 0 (0.09) 0 0 0 (0.02)
------- ------- ------- ------- ------- -------
Total distributions to
shareholders (0.49) (0.56) (0.36) (0.37) (0.38) (0.42)
------- ------- ------- ------- ------- -------
Net asset value, end of
period $ 10.57 $ 10.58 $ 11.16 $ 10.91 $ 10.56 $ 10.69
------- ------- ------- ------- ------- -------
Total return* 4.74% (0.29%) 5.70% 6.92% 2.36% 9.81%
Ratios and supplemental
data
Net assets, end of
period (thousands) $21,419 $23,114 $24,754 $27,786 $31,284 $32,172
Ratios to average net
assets
Expenses++ 0.81% 0.79% 1.52%+ 1.69% 1.43% 1.24%
Net investment income 4.73% 4.27% 3.56%+ 3.45% 3.57% 4.24%
Portfolio turnover rate 45% 40% 37% 13% 138% 21%
</TABLE>
<TABLE>
<CAPTION>
Year Ended August 31,
-------------------------
2000 1999 1998 (c)
<S> <C> <C> <C>
CLASS B SHARES
Net asset value, beginning of period $10.58 $11.16 $10.99
------ ------ ------
Income from investment operations
Net investment income 0.41 0.39 0.16
Net realized and unrealized gains or losses on
securities (0.01) (0.49) 0.17
------ ------ ------
Total from investment operations 0.40 (0.10) 0.33
------ ------ ------
Less distributions to shareholders from
Net investment income (0.41) (0.39) (0.16)
Net realized gains 0 (0.09) 0
------ ------ ------
Total distributions to shareholders (0.41) (0.48) (0.16)
------ ------ ------
Net asset value, end of period $10.57 $10.58 $11.16
------ ------ ------
Total return* 3.96% (1.04%) 2.99%
Ratios and supplemental data
Net assets, end of period (thousands) $3,489 $3,440 $ 990
Ratios to average net assets
Expenses++ 1.56% 1.55% 1.49%+
Net investment income 3.98% 3.49% 3.41%+
Portfolio turnover rate 45% 40% 37%
</TABLE>
(a) On February 28, 1998, Virtus Maryland Municipal Bond Fund sold substan-
tially all of its net assets to Evergreen Maryland Municipal Bond Fund. As
Virtus Maryland Municipal Bond Fund is the accounting survivor, its basis
of accounting for assets and liabilities and its operating results for the
periods prior to February 28, 1998 have been carried forward in these fi-
nancial highlights.
(b) For the eleven months ended August 31, 1998. The Fund changed its fiscal
year end from September 30 to August 31, effective August 31, 1998.
(c) For the period from March 27, 1998 (commencement of class operations) to
August 31, 1998.
* Excluding applicable sales charges.
++ The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
+ Annualized.
See Combined Notes to Financial Statements.
29
<PAGE>
EVERGREEN
Maryland Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended August 31,
------------------------
2000 1999 (a)
<S> <C> <C>
CLASS C SHARES
Net asset value, beginning of period $ 10.58 $ 11.11
---------- ----------
Income from investment operations
Net investment income 0.41 0.26
Net realized and unrealized gains or losses on
securities (0.01) (0.53)
---------- ----------
Total from investment operations 0.40 (0.27)
---------- ----------
Less distributions to shareholders from
Net investment income (0.41) (0.26)
Net realized gains 0 0
---------- ----------
Total distributions to shareholders (0.41) (0.26)
---------- ----------
Net asset value, end of period $ 10.57 $ 10.58
---------- ----------
Total return* 3.96% (2.48%)
Ratios and supplemental data
Net assets, end of period (thousands) $ 56 $ 30
Ratios to average net assets
Expenses++ 1.56% 1.55%+
Net investment income 4.00% 3.51%+
Portfolio turnover rate 45% 40%
</TABLE>
<TABLE>
<CAPTION>
Year Ended August 31, Year Ended September 30,
-------------------------------- --------------------------
2000 1999 1998 (b) (c) 1997 (c) 1996 (c) 1995 (c)
<S> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value,
beginning of period $ 10.58 $ 11.16 $10.91 $10.56 $10.69 $10.17
-------- ------- ------ ------ ------ ------
Income from investment
operations
Net investment income 0.52 0.50 0.39 0.40 0.41 0.42
Net realized and
unrealized gains or
losses on securities (0.01) (0.49) 0.25 0.35 (0.13) 0.54
-------- ------- ------ ------ ------ ------
Total from investment
operations 0.51 0.01 0.64 0.75 0.28 0.96
-------- ------- ------ ------ ------ ------
Less distributions to
shareholders from
Net investment income (0.52) (0.50) (0.39) (0.40) (0.41) (0.42)
Net realized gains 0 (0.09) 0 0 0 (0.02)
-------- ------- ------ ------ ------ ------
Total distributions to
shareholders (0.52) (0.59) (0.39) (0.40) (0.41) (0.44)
-------- ------- ------ ------ ------ ------
Net asset value, end of
period $ 10.57 $ 10.58 $11.16 $10.91 $10.56 $10.69
-------- ------- ------ ------ ------ ------
Total return 5.00% (0.04%) 5.94% 7.19% 2.61% 10.09%
Ratios and supplemental
data
Net assets, end of
period (thousands) $ 18,565 $13,190 $5,229 $5,683 $8,889 $9,447
Ratios to average net
assets
Expenses++ 0.56% 0.55% 1.25%+ 1.44% 1.18% 0.99%
Net investment income 4.99% 4.55% 3.83%+ 3.70% 3.82% 4.49%
Portfolio turnover rate 45% 40% 37% 13% 138% 21%
</TABLE>
(a) For the period from December 23, 1998 (commencement of class operations) to
August 31, 1999.
(b) For the eleven months ended August 31, 1998. The Fund changed its fiscal
year end from September 30 to August 31, effective August 31, 1998.
(c) On February 28, 1998, Virtus Maryland Municipal Bond Fund sold substan-
tially all of its net assets to Evergreen Maryland Municipal Bond Fund. As
Virtus Maryland Municipal Bond Fund is the accounting survivor, its basis
of accounting for assets and liabilities and its operating results for the
periods prior to February 28, 1998 have been carried forward in these fi-
nancial highlights.
* Excluding applicable sales charges.
++ The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
+ Annualized.
See Combined Notes to Financial Statements.
30
<PAGE>
EVERGREEN
North Carolina Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended August 31,
--------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value, beginning
of period $ 10.19 $ 10.84 $ 10.37 $ 9.98 $ 9.95
------- ------- ------- ------- -------
Income from investment
operations
Net investment income 0.50 0.50 0.51 0.49 0.49
Net realized and unrealized
gains or losses on securities (0.13) (0.59) 0.47 0.40 0.02
------- ------- ------- ------- -------
Total from investment
operations 0.37 (0.09) 0.98 0.89 0.51
------- ------- ------- ------- -------
Less distributions to
shareholders from
Net investment income (0.50) (0.50) (0.51) (0.50) (0.48)
Net realized gains (0.06) (0.06) 0 0 0
------- ------- ------- ------- -------
Total distributions to
shareholders (0.56) (0.56) (0.51) (0.50) (0.48)
------- ------- ------- ------- -------
Net asset value, end of period $ 10.00 $ 10.19 $ 10.84 $ 10.37 $ 9.98
------- ------- ------- ------- -------
Total return* 3.87% (0.92%) 9.66% 9.11% 5.21%
Ratios and supplemental data
Net assets, end of period
(thousands) $22,859 $17,990 $15,768 $ 8,115 $ 7,989
Ratios to average net assets
Expenses++ 0.56% 0.49% 0.56% 1.11% 1.08%
Net investment income 5.05% 4.72% 4.81% 4.77% 4.81%
Portfolio turnover rate 25% 41% 53% 50% 86%
<CAPTION>
Year Ended August 31,
--------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value, beginning
of period $ 10.19 $ 10.84 $ 10.37 $ 9.98 $ 9.95
------- ------- ------- ------- -------
Income from investment
operations
Net investment income 0.42 0.42 0.43 0.41 0.42
Net realized and unrealized
gains or losses on securities (0.12) (0.59) 0.47 0.40 0.02
------- ------- ------- ------- -------
Total from investment
operations 0.30 (0.17) 0.90 0.81 0.44
------- ------- ------- ------- -------
Less distributions to
shareholders from
Net investment income (0.43) (0.42) (0.43) (0.42) (0.41)
Net realized gains (0.06) (0.06) 0 0 0
------- ------- ------- ------- -------
Total distributions to
shareholders (0.49) (0.48) (0.43) (0.42) (0.41)
------- ------- ------- ------- -------
Net asset value, end of period $ 10.00 $ 10.19 $ 10.84 $ 10.37 $ 9.98
------- ------- ------- ------- -------
Total return* 3.10% (1.66%) 8.85% 8.30% 4.42%
Ratios and supplemental data
Net assets, end of period
(thousands) $35,847 $46,042 $49,320 $48,198 $49,382
Ratios to average net assets
Expenses++ 1.31% 1.23% 1.33% 1.86% 1.83%
Net investment income 4.29% 3.96% 4.07% 4.02% 4.06%
Portfolio turnover rate 25% 41% 53% 50% 86%
</TABLE>
* Excluding applicable sales charges.
++ The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
31
<PAGE>
EVERGREEN
North Carolina Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended August 31,
---------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value, beginning
of period $ 10.19 $ 10.84 $ 10.37 $ 9.98 $ 9.95
-------- -------- -------- ------ ------
Income from investment
operations
Net investment income 0.52 0.52 0.54 0.51 0.51
Net realized and unrealized
gains or losses on securities (0.12) (0.58) 0.47 0.41 0.03
-------- -------- -------- ------ ------
Total from investment
operations 0.40 (0.06) 1.01 0.92 0.54
-------- -------- -------- ------ ------
Less distributions to
shareholders from
Net investment income (0.53) (0.53) (0.54) (0.53) (0.51)
Net realized gains (0.06) (0.06) 0 0 0
-------- -------- -------- ------ ------
Total distributions to
shareholders (0.59) (0.59) (0.54) (0.53) (0.51)
-------- -------- -------- ------ ------
Net asset value, end of period $ 10.00 $ 10.19 $ 10.84 $10.37 $ 9.98
-------- -------- -------- ------ ------
Total return 4.14% (0.68%) 9.93% 9.39% 5.47%
Ratios and supplemental data
Net assets, end of period
(thousands) $217,202 $247,475 $256,231 $4,042 $3,771
Ratios to average net assets
Expenses++ 0.31% 0.23% 0.20% 0.86% 0.84%
Net investment income 5.29% 4.96% 5.04% 5.02% 5.05%
Portfolio turnover rate 25% 41% 53% 50% 86%
</TABLE>
++ The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
32
<PAGE>
EVERGREEN
South Carolina Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended August 31,
---------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value, beginning of period $ 9.84 $10.44 $10.08 $ 9.69 $ 9.59
------ ------ ------ ------ ------
Income from investment operations
Net investment income 0.46 0.46 0.46 0.48 0.49
Net realized and unrealized gains or
losses on securities 0.02 (0.50) 0.39 0.40 0.10
------ ------ ------ ------ ------
Total from investment operations 0.48 (0.04) 0.85 0.88 0.59
------ ------ ------ ------ ------
Less distributions to shareholders
from
Net investment income (0.46) (0.46) (0.46) (0.48) (0.49)
Net realized gains (0.07) (0.10) (0.03) (0.01) 0
------ ------ ------ ------ ------
Total distributions to shareholders (0.53) (0.56) (0.49) (0.49) (0.49)
------ ------ ------ ------ ------
Net asset value, end of period $ 9.79 $ 9.84 $10.44 $10.08 $ 9.69
------ ------ ------ ------ ------
Total return* 5.16% (0.56%) 8.60% 9.33% 6.23%
Ratios and supplemental data
Net assets, end of period
(thousands) $1,937 $2,324 $1,744 $1,025 $ 841
Ratios to average net assets
Expenses++ 0.79% 0.70% 0.77% 0.98% 0.86%
Net investment income 4.81% 4.43% 4.56% 4.87% 4.98%
Portfolio turnover rate 55% 35% 31% 62% 37%
<CAPTION>
Year Ended August 31,
---------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value, beginning of period $ 9.84 $10.44 $10.08 $ 9.69 $ 9.59
------ ------ ------ ------ ------
Income from investment operations
Net investment income 0.39 0.38 0.38 0.41 0.41
Net realized and unrealized gains or
losses on securities 0.02 (0.50) 0.39 0.40 0.10
------ ------ ------ ------ ------
Total from investment operations 0.41 (0.12) 0.77 0.81 0.51
------ ------ ------ ------ ------
Less distributions to shareholders
from
Net investment income (0.39) (0.38) (0.38) (0.41) (0.41)
Net realized gains (0.07) (0.10) (0.03) (0.01) 0
------ ------ ------ ------ ------
Total distributions to shareholders (0.46) (0.48) (0.41) (0.42) (0.41)
------ ------ ------ ------ ------
Net asset value, end of period $ 9.79 $ 9.84 $10.44 $10.08 $ 9.69
------ ------ ------ ------ ------
Total return* 4.38% (1.30%) 7.79% 8.52% 5.43%
Ratios and supplemental data
Net assets, end of period
(thousands) $4,627 $5,393 $4,542 $4,734 $4,282
Ratios to average net assets
Expenses++ 1.53% 1.45% 1.53% 1.73% 1.61%
Net investment income 4.04% 3.68% 3.76% 4.13% 4.23%
Portfolio turnover rate 55% 35% 31% 62% 37%
</TABLE>
* Excluding applicable sales charges.
++ The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
33
<PAGE>
EVERGREEN
South Carolina Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended August 31,
------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value, beginning of
period $ 9.84 $ 10.44 $ 10.08 $ 9.69 $ 9.59
------- ------- ------- ------ ------
Income from investment operations
Net investment income 0.49 0.48 0.48 0.51 0.51
Net realized and unrealized gains
or losses on securities 0.02 (0.50) 0.40 0.40 0.10
------- ------- ------- ------ ------
Total from investment operations 0.51 (0.02) 0.88 0.91 0.61
------- ------- ------- ------ ------
Less distributions to
shareholders from
Net investment income (0.49) (0.48) (0.49) (0.51) (0.51)
Net realized gains (0.07) (0.10) (0.03) (0.01) 0
------- ------- ------- ------ ------
Total distributions to
shareholders (0.56) (0.58) (0.52) (0.52) (0.51)
------- ------- ------- ------ ------
Net asset value, end of period $ 9.79 $ 9.84 $ 10.44 $10.08 $ 9.69
------- ------- ------- ------ ------
Total return 5.42% (0.31%) 8.87% 9.60% 6.49%
Ratios and supplemental data
Net assets, end of period
(thousands) $54,231 $61,314 $66,303 $7,012 $4,555
Ratios to average net assets
Expenses++ 0.54% 0.45% 0.46% 0.73% 0.62%
Net investment income 5.04% 4.69% 4.71% 5.12% 5.22%
Portfolio turnover rate 55% 35% 31% 62% 37%
</TABLE>
++ The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
34
<PAGE>
EVERGREEN
Virginia Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended August 31,
-----------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value, beginning of
period $ 9.93 $ 10.46 $ 10.05 $ 9.68 $ 9.67
------- ------- ------- ------ ------
Income from investment operations
Net investment income 0.47 0.49 0.48 0.50 0.48
Net realized and unrealized gains
or losses on securities 0.05 (0.45) 0.42 0.37 0.01
------- ------- ------- ------ ------
Total from investment operations 0.52 0.04 0.90 0.87 0.49
------- ------- ------- ------ ------
Less distributions to shareholders
from
Net investment income (0.48) (0.49) (0.49) (0.50) (0.48)
Net realized gains (0.02) (0.08) 0 0 0
------- ------- ------- ------ ------
Total distributions to
shareholders (0.50) (0.57) (0.49) (0.50) (0.48)
------- ------- ------- ------ ------
Net asset value, end of period $ 9.95 $ 9.93 $ 10.46 $10.05 $ 9.68
------- ------- ------- ------ ------
Total return* 5.42% 0.23% 9.12% 9.05% 5.12%
Ratios and supplemental data
Net assets, end of period
(thousands) $45,759 $50,341 $54,298 $2,934 $2,892
Ratios to average net assets
Expenses++ 0.74% 0.51% 0.50% 1.03% 0.93%
Net investment income 4.87% 4.70% 4.71% 4.95% 4.83%
Portfolio turnover rate 52% 31% 46% 72% 68%
</TABLE>
<TABLE>
<CAPTION>
Year Ended August 31,
-----------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value, beginning of
period $ 9.93 $ 10.46 $10.05 $ 9.68 $ 9.67
------- ------- ------ ------ ------
Income from investment operations
Net investment income 0.40 0.41 0.41 0.41 0.41
Net realized and unrealized gains
or losses on securities 0.04 (0.45) 0.41 0.37 0.01
------- ------- ------ ------ ------
Total from investment operations 0.44 (0.04) 0.82 0.78 0.42
------- ------- ------ ------ ------
Less distributions to shareholders
from
Net investment income (0.40) (0.41) (0.41) (0.41) (0.41)
Net realized gains (0.02) (0.08) 0 0 0
------- ------- ------ ------ ------
Total distributions to
shareholders (0.42) (0.49) (0.41) (0.41) (0.41)
------- ------- ------ ------ ------
Net asset value, end of period $ 9.95 $ 9.93 $10.46 $10.05 $ 9.68
------- ------- ------ ------ ------
Total return* 4.63% (0.52%) 8.31% 8.24% 4.34%
Ratios and supplemental data
Net assets, end of period
(thousands) $15,119 $15,403 $8,935 $6,695 $5,963
Ratios to average net assets
Expenses++ 1.49% 1.26% 1.35% 1.79% 1.68%
Net investment income 4.11% 3.93% 3.99% 4.21% 4.09%
Portfolio turnover rate 52% 31% 46% 72% 68%
</TABLE>
* Excluding applicable sales charges.
++ The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
35
<PAGE>
EVERGREEN
Virginia Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended August 31,
--------------------------------------------
2000 1999 # 1998 1997 1996
<S> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value, beginning of
period $ 9.93 $ 10.46 $ 10.05 $ 9.68 $ 9.67
-------- -------- -------- ------ ------
Income from investment
operations
Net investment income 0.50 0.51 0.51 0.51 0.50
Net realized and unrealized
gains or losses on securities 0.04 (0.45) 0.41 0.37 0.01
-------- -------- -------- ------ ------
Total from investment operations 0.54 0.06 0.92 0.88 0.51
-------- -------- -------- ------ ------
Less distributions to
shareholders from
Net investment income (0.50) (0.51) (0.51) (0.51) (0.50)
Net realized gains (0.02) (0.08) 0 0 0
-------- -------- -------- ------ ------
Total distributions to
shareholders (0.52) (0.59) (0.51) (0.51) (0.50)
-------- -------- -------- ------ ------
Net asset value, end of period $ 9.95 $ 9.93 $ 10.46 $10.05 $ 9.68
-------- -------- -------- ------ ------
Total return 5.68% 0.48% 9.39% 9.32% 5.38%
Ratios and supplemental data
Net assets, end of period
(thousands) $108,222 $115,720 $105,931 $6,195 $4,266
Ratios to average net assets
Expenses++ 0.49% 0.26% 0.25% 0.79% 0.70%
Net investment income 5.12% 4.95% 4.98% 5.27% 5.05%
Portfolio turnover rate 52% 31% 46% 72% 68%
</TABLE>
# Net investment income per share is based on average shares outstanding during
the period.
++ The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
36
<PAGE>
EVERGREEN
Florida High Income Municipal Bond Fund
Schedule of Investments
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - 97.5%
Airlines - 0.2%
Hillsborough Cnty., FL Aviation Auth. RB, US
Air Proj., Ser. 2, 8.60%, 01/15/2022....... B $ 600,000 $ 619,080
------------
Airport - 0.4%
Cmnwlth. of Puerto Rico Port Auth. RB,
American Airlines Proj., Ser. A, 6.25%,
06/01/2026................................. BBB- 1,475,000 1,503,821
------------
Community Development District - 24.6%
Arbor Greene, FL CDD Spl. Assmt. RB:
5.75%, 05/01/2006.......................... NR 850,000 837,836
6.30%, 05/01/2019.......................... NR 485,000 460,008
7.60%, 05/01/2018.......................... NR 715,000 753,560
Bayside, FL CDD Capital Impt. RB:
Ser. A, 5.95%, 05/01/2008.................. NR 1,425,000 1,383,789
Ser. B, 6.05%, 05/01/2008.................. NR 1,290,000 1,252,822
Ser. B, 6.375%, 05/01/2018................. NR 1,625,000 1,535,300
Bobcat Trail, FL CDD RB:
Ser. A, 6.60%, 05/01/2021.................. NR 1,480,000 1,389,587
Ser. A, 7.50%, 05/01/2019.................. NR 2,410,000 2,483,360
Ser. B, 6.00%, 05/01/2006.................. NR 1,225,000 1,182,689
Ser. B, 6.75%, 05/01/2004.................. NR 3,190,000 3,190,638
Championsgate, FL CDD Capital Impt. RB:
Ser. A, 6.25%, 05/01/2020.................. NR 2,840,000 2,636,855
Ser. B, 5.70%, 05/01/2005.................. NR 3,030,000 2,960,158
Cory Lakes, FL CDD RB, 8.375%, 05/01/2017... NR 2,245,000 2,303,752
Covington Park, FL CDD RB, 7.00%,
05/01/2031................................. NR 4,000,000 3,974,480
Eastlake Oaks, FL CDD RB, 7.75%,
05/01/2017................................. NR 1,390,000 1,443,793
Fleming Island Plantation, FL CDD Spl.
Assmt. RB, Ser. A, 6.30%, 02/01/2005....... NR 2,600,000 2,605,772
Grand Haven, FL CDD, Spl. Assmt. RB, Ser. A,
6.90%, 05/01/2019.......................... NR 3,750,000 3,758,213
Heritage Isles, FL CDD RB, Ser. A, 5.75%,
05/01/2005................................. NR 2,240,000 2,206,579
Heritage Isles, FL CDD Spl. Assmt. RB, Ser.
B, 6.00%, 05/01/2020....................... NR 2,600,000 2,331,914
Heritage Oak Park, FL CDD Spl. Assmt. RB:
Ser. A, 6.50%, 05/01/2020.................. NR 2,950,000 2,790,375
Ser. B, 6.00%, 05/01/2005.................. NR 4,985,000 4,819,548
Heritage Pines, CA CDA RB:
Ser. A, 6.10%, 05/01/2020.................. NR 2,720,000 2,509,336
Ser. B, 5.50%, 05/01/2005.................. NR 5,460,000 5,298,056
Indian Trace, FL CDD Wtr. Mgmt., Spl.
Benefit GO, Subser. B, 8.25%, 05/01/2011... NR 2,500,000 2,741,600
Indigo, FL CDD Capital Impt. RB, Ser. C,
7.00%, 05/01/2030.......................... NR 3,200,000 3,160,192
Journeys End CDD Spl. Assmt. RB, 7.00%,
05/01/2031................................. NR 2,300,000 2,308,257
Lake Bernadette, FL CDD Spl. Assmt. RB, Pub.
Impt., Ser. A, 8.00%, 05/01/2017........... NR 2,305,000 2,419,720
</TABLE>
37
<PAGE>
EVERGREEN
Florida High Income Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Community Development District - continued
Lakeside Plantation, FL CDD RB, Ser. B:
6.625%, 05/01/2006......................... NR $ 1,640,000 $ 1,627,995
6.95%, 05/01/2031.......................... NR 2,360,000 2,344,873
Lexington Oaks, FL CDD RB:
Ser. A, 6.125%, 05/01/2019................. NR 1,020,000 940,624
Ser. B, 5.50%, 05/01/2005.................. NR 5,775,000 5,596,899
Meadow Point II, FL CDD, Capital Impt. RB,
7.75%, 05/01/2018.......................... NR 1,190,000 1,234,399
Mediterra South, FL CDD, Ser. A, 6.95%,
05/01/2031................................. NR 3,000,000 2,992,410
New Jersey State EDA RB, Franciscan Oaks
Proj., 5.75%, 10/01/2023................... NR 1,000,000 822,900
Northern Palm Beach Cnty., FL Wtr. Ctl.
Dist., Spl. Assmt. RB, Unit Dev. No. 3A,
7.00%, 08/01/2015.......................... NR 500,000 518,835
Northwood, FL CDD RB, 7.60%, 05/01/2017..... NR 1,390,000 1,425,848
Overoaks, FL CDD Capital Impt. RB, 8.25%,
05/01/2017................................. NR 545,000 586,104
Poinciana, FL CDD Spl. Assmt. RB, Ser. A,
7.125%, 05/01/2031......................... NR 5,000,000 5,025,300
Remington, FL CDD RB, 6.95%, 05/01/2009..... NR 2,210,000 2,196,961
River Ridge, FL CDD RB, 5.75%, 05/01/2008... NR 2,900,000 2,809,027
Westchase East, FL CDD Capital Impt. RB:
7.30%, 05/01/2018.......................... NR 1,350,000 1,392,809
7.50%, 05/01/2017.......................... NR 1,635,000 1,686,453
Winston Trails, FL CDD Spl. Obl., 6.50%,
10/01/2031................................. NR 3,255,000 3,141,335
------------
99,080,961
------------
Continuing Care Retirement Community - 11.9%
Brevard Cnty., FL Hlth. Facs. Auth. RB,
Courtenay Springs Vlg., 7.50%, 11/15/2012.. NR 1,875,000 2,108,494
Escambia Cnty., FL Hlth. Facs. Auth. RB,
Azalea Trace Inc.:
6.00%, 01/01/2015.......................... NR 2,905,000 2,574,789
6.10%, 01/01/2019.......................... NR 2,250,000 1,950,682
Gainesville & Hall Cnty., GA Dev. Auth. RB,
Sr. Living Facs., Lanier Vlg. Estates, Ser.
C, 7.25%, 11/15/2029....................... NR 5,000,000 4,778,100
Hialeah Gardens, FL IDA RB, Waterford
Convalescent, Ser. A, 7.875%, 12/01/2007... NR 1,370,000 1,423,937
Homestead, FL IDA RB, Community
Rehabilitation Providers Program, Ser. A,
7.95%, 11/01/2018.......................... NR 3,115,000 3,164,342
Jacksonville, FL Hlth. Facs. Auth. RB,
Cypress Vlg. Proj.:
7.00%, 12/01/2014.......................... NR 1,250,000 1,277,825
7.00%, 12/01/2022.......................... NR 1,020,000 1,029,517
Natl. Benevolant Assn. Cypress, 8.00%,
12/01/2015................................ NR 500,000 538,385
Lee Cnty., FL IDA Hlth. Care RB, Shell Point
Vlg. Proj., 5.75%, 11/15/2011.............. BBB- 1,015,000 939,514
Lee Cnty., FL IDA RB, Encore Nursing Ctr.,
8.125%, 12/01/2007......................... NR 680,000 711,953
</TABLE>
38
<PAGE>
EVERGREEN
Florida High Income Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Continuing Care Retirement Community -
continued
Orange Cnty., FL Hlth. Facs. Auth. RB:
Lakeside Apts., Inc., 6.50%, 07/01/2013.... BBB $ 1,040,000 $ 1,008,259
Orlando Lutheran Tower:
8.40%, 07/01/2014.......................... NR 395,000 424,349
8.75%, 07/01/2026.......................... NR 370,000 400,299
Palm Beach Cnty., FL HFA RB, Abbey Delray
South Proj.:
5.50%, 10/01/2011.......................... BBB 2,750,000 2,588,987
5.50%, 10/01/2015.......................... BBB 2,500,000 2,259,125
Pinellas Cnty., FL Hlth. Facs. Auth. RB,
Sunshine Vlg. Nursing Home:
6.75%, 10/01/2000.......................... NR 150,000 149,920
7.00%, 10/01/2001.......................... NR 100,000 99,792
7.25%, 10/01/2002.......................... NR 200,000 200,822
8.00%, 10/01/2008.......................... NR 1,100,000 1,133,088
Sarasota Cnty., FL Hlth. Facs. Auth. RB,
Sunnyside Properties, 6.00%, 05/15/2010.... NR 1,000,000 933,620
St. John's Cnty., FL IDA RB, Ser. A:
Bayview Proj., Ser. A, 7.10%, 10/01/2026... NR 2,500,000 2,447,550
Glenmoor St. John's Proj.:
Ser A, 8.00%, 01/01/2020................... NR 5,000,000 4,945,900
Ser. A, 8.00%, 01/01/2023.................. NR 6,000,000 5,913,120
Vicars Landing Proj., Ser. A, 6.75%,
02/15/2012................................ BBB- 2,510,000 2,455,207
Volusia Cnty., FL IDA, First Mtge. RB,
Bishop Glenn Proj., 7.625%,11/01/2026...... NR 2,000,000 2,336,360
------------
47,793,936
------------
Education - 3.0%
Pinellas Cnty., FL Edl. Facs. Auth. RB:
Clearwater Christian College, 8.00%,
02/01/2011................................ NR 3,145,000 3,406,223
Eckerd College, 7.75%, 07/01/2014.......... NR 685,000 718,887
Volusia Cnty., FL Edl. Facs. Auth. RB,
Embry-Riddle Aero, Ser. A:
5.75%, 10/15/2029.......................... NR 2,000,000 1,947,500
6.125%, 10/15/2016......................... NR 1,025,000 1,061,685
6.125%, 10/15/2026......................... NR 5,000,000 5,103,650
------------
12,237,945
------------
General Obligation - Local - 1.0%
Marshall Creek, FL CDD Spl. Assmt. RB:
Ser. A, 7.65%, 05/01/2032.................. NR 2,000,000 2,036,140
Ser. B, 6.75%, 05/01/2007.................. NR 2,000,000 2,014,660
------------
4,050,800
------------
Hospital - 3.0%
Cmnwlth. of Puerto Rico Indl., Tourist,
Edl., Med. & Env. Ctl. Facs. RB, Mennonite
General Hosp. Proj., Ser. A, 6.50%,
07/01/2012................................. BBB- 970,000 932,791
Escambia Cnty., FL Hlth. Facs. Auth. RB,
Baptist Hosp. Inc., Ser.B, 6.00%,
10/01/2014 ................................ BBB+ 1,500,000 1,406,430
</TABLE>
39
<PAGE>
EVERGREEN
Florida High Income Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Hospital - continued
Jacksonville, FL Hlth. Facs. Auth. RB, First
Mtge. Mental Hlth., Ser. A, 7.00%,
10/01/2029................................. NR $ 3,940,000 $ 3,705,649
Leesburg, FL Hosp. RB, Leesburg Regl. Med.
Ctr. Proj., Ser. A, 6.125%, 07/01/2018..... A 3,110,000 3,158,298
Palm Beach Cnty., FL IDA RB, Geriatric Care
Inc. Proj., 6.55%, 12/01/2016.............. A+ 1,500,000 1,575,375
St. John's Cnty., FL IDA RB, Bayview Proj.,
Ser. A, 7.00%, 10/01/2012.................. NR 1,125,000 1,111,849
------------
11,890,392
------------
Housing - 19.3%
Boynton Beach, FL MHRB, Clipper Cove Apts.,
6.35%, 07/01/2016.......................... A+ 750,000 768,885
Broward Cnty., FL HFA RB, Ser. A, 7.35%,
03/01/2023, (Insd. by GNMA)................ AAA 675,000 692,732
Duval Cnty., FL HFA RB, St. Augustine Apts.
Proj., 6.00%, 03/01/2021................... A 4,820,000 4,822,892
Escambia Cnty., FL HFA SFHRB, Multi-Cnty.
Program, 6.85%, 10/01/2017................. AAA 730,000 769,895
Florida HFA RB:
St. Cloud Vlg. Proj.:
8.00%, 02/01/2030.......................... NR 1,395,000 1,371,620
Ser. D, 5.95%, 02/01/2030.................. AAA 4,905,000 4,975,975
Sunset Place, Ser. K-3, 6.50%, 10/01/2029.. BBB 1,200,000 1,151,616
The Vineyards Proj., Ser. H, 6.50%,
11/01/2025................................ BBB+ 1,500,000 1,524,690
Hillsborough Cnty., FL HFA, Clipper Cove
Apts. Proj., Ser. A, 7.38%, 07/01/2040..... NR 4,000,000 4,024,480
Lee Cnty., FL HFA SFHRB, Multi-Cnty.
Program: 6.85%, 03/01/2009................. NR 2,475,000 2,659,734
Ser. A, 7.20%, 03/01/2027.................. NR 2,010,000 2,154,056
Ser. A, Sub. Ser. 2, 7.45%, 09/01/2027..... AAA 1,845,000 2,052,101
Ser. A, Sub. Ser. 2, 7.50%, 09/01/2027..... AAA 4,415,000 4,952,615
Leon Cnty., FL Ed'l. Facs. RB, Ser. A,
8.25%, 05/01/2014, (Insd. by GNMA)......... NR 2,535,000 2,631,558
Manatee Cnty., FL HFA SFHRB, Subser. 1,
7.45%, 05/01/2027.......................... NR 2,250,000 2,451,780
Orange Cnty., FL HFA MHRB, Ser. G:
Brentwood Park Apts., Ser. G, 6.40%,
07/01/2032................................ NR 10,140,000 9,525,820
Hsg. Buena Vista Place II, Ser. I, 6.90%,
07/01/2039................................ NR 2,845,000 2,674,101
Hsg. Palm West Apts. Proj., Ser. B, 6.50%,
03/01/2034................................ NR 2,900,000 2,647,816
Hsg. Palms At Brentwood, Ser. K, 6.50%,
12/01/2034................................ NR 14,925,000 13,635,480
Orange Cnty., FL HFA SFHRB, Ser. B, 6.85%,
10/01/2027, (Insd. by GNMA/FNMA)........... AAA 1,095,000 1,149,159
Palm Beach Cnty., FL HFA RB, Daughters of
Charity, Ser. A, 7.60%, 03/01/2023, (Insd.
by GNMA)................................... NR 2,795,000 2,880,583
Palm Beach Cnty., FL HFA SFHRB, Ser. A,
6.50%, 10/01/2021, (Insd. by GNMA)......... NR 1,330,000 1,390,435
</TABLE>
40
<PAGE>
EVERGREEN
Florida High Income Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Housing - continued
Pinellas Cnty., FL HFA SFHRB, Multi Cnty.
Prog.:
6.00%, 09/01/2021.......................... NR $ 2,220,000 $ 2,258,561
6.10%, 09/01/2026.......................... NR 1,250,000 1,279,850
Polk Cnty., FL HFA SFHRB, 7.00%,
09/01/2015................................. NR 245,000 248,112
Winter Haven, FL Hsg. Auth. MHRB, Abbey Lane
Apts., Ser. C:
7.00%, 07/01/2012, (Insd. by FNMA)......... NR 985,000 1,022,913
7.00%, 07/01/2024, (Insd. by FNMA)......... NR 2,000,000 2,076,980
------------
77,794,439
------------
Industrial Development Revenue - 16.3%
Escambia Cnty., FL PCRB, Champion Intl.
Corp. Proj.:
6.40%, 09/01/2030.......................... NR 4,200,000 4,214,322
6.90%, 08/01/2022.......................... BBB+ 2,000,000 2,065,320
Hernando Cnty., FL IDA RB, Crushed Stone
Co., 8.50%, 12/01/2014..................... NR 3,610,000 3,839,957
Hillsborough Cnty., FL IDRB, Lakeshore
Villas Proj.:
6.75%, 07/01/2029.......................... NR 8,410,000 7,302,908
Ser. A, 6.50%, 07/01/2029.................. NR 3,000,000 2,614,380
Sr. Ser. A, 6.70%, 07/01/2021.............. NR 6,590,000 5,839,201
Lake Cnty., FL Resource Recovery IDRB, NRG
Recovery Group, Inc., Ser. 1993-A, 5.85%,
10/01/2009................................. BBB+ 3,200,000 3,209,568
Lee Cnty., FL IDA RB, Cypress Cove Hlth.
Program:
Ser. A, 6.25%, 10/01/2017.................. NR 3,290,000 2,949,649
Ser. A, 6.375%, 10/01/2025................. NR 6,575,000 5,797,375
Ser. B, 5.875%, 10/01/2027................. NR 1,155,000 1,131,415
Maryland Energy Fin. Admin. Ltd. Obl. RB,
Office Paper Sys., Inc.
Proj., Ser. A, 7.50%, 09/01/2015........... NR 4,555,000 4,412,019
Mason Cnty., WV PCRB, Appalachian Pwr. Co.
Proj., 6.85%, 06/01/2022................... BBB+ 3,000,000 3,042,990
Navajo Cnty., AZ IDA RB, Stone Container
Corp. Proj., 7.40%, 04/01/2026............. NR 1,650,000 1,647,970
North Springs, FL Impt. Dist. Spl. Assmt.
RB:
Ser. A, 7.00%, 05/01/2019.................. NR 300,000 304,392
Heron Bay Proj., 7.00%, 05/01/2019......... NR 1,905,000 1,932,889
Parkland Isles Proj., Ser. B, 6.25%,
05/01/2005................................ NR 3,775,000 3,765,563
Wtr. Mgmt., Ser. A, 8.20%, 05/01/2024...... NR 1,240,000 1,377,144
Ocean Hwy. & Port Auth., FL PCRB, Solid
Wst., Jefferson Smurfit Corp., 6.50%,
11/01/2006................................. NR 2,605,000 2,567,514
Polk Cnty., FL IDA RB, IMC Fertilizer, Ser.
A, 7.525%, 01/01/2015...................... BBB 5,000,000 5,117,150
Savannah, GA EDA RB, Stone Container Corp.
Proj., 7.40%, 04/01/2026................... NR 2,750,000 2,731,025
------------
65,862,751
------------
</TABLE>
41
<PAGE>
EVERGREEN
Florida High Income Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Miscellaneous Revenue - 1.7%
Miami Beach, FL Redev. Agcy. Tax Increment
RB, City Ctr. Historic Convention, Ser. B:
6.25%, 12/01/2016.......................... BBB $ 1,000,000 $ 1,040,360
6.35%, 12/01/2022.......................... BBB 500,000 521,970
Orlando, FL Spl. Assmt. RB, Conroy Rd.
Interchange Proj., Ser. A:
5.50%, 05/01/2010.......................... NR 1,000,000 944,710
5.80%, 05/01/2026.......................... NR 5,000,000 4,423,800
------------
6,930,840
------------
Public Facilities - 3.8%
Heritage Harbor, FL RB, 7.75%, 05/01/2019... NR 2,930,000 2,872,982
Heritage Isles, FL RB, 7.10%, 10/01/2022.... NR 4,000,000 3,722,120
Stoneybrook, FL CDD Golf Course RB, 7.00%,
10/01/2022................................. NR 9,630,000 8,918,728
------------
15,513,830
Special Tax - 4.0%
Brevard Cnty., FL Tourist Dev. Tax RB,
Marlin Spring, 6.875%,03/01/2013........... NR 1,000,000 1,009,010
Dulles Town, VA CDA Spl. Assmt. RB, Dulles
Town Ctr. Proj., 6.25%, 03/01/2026......... NR 3,000,000 2,874,840
Frederick Cnty., MD Spl. Obl. RB, Urbana
CDA, 6.625%, 07/01/2025.................... NR 2,500,000 2,435,900
Northern Palm Beach Cnty., FL Wtr. Ctl. &
Impt. Dist. RB, Unit Dev. No. 9A, Ser. A,
7.20%, 08/01/2016.......................... NR 2,500,000 2,670,000
Quantum, FL CDD Spl. Assmt. RB, 7.75%,
03/01/2014................................. NR 1,355,000 1,406,978
Virgin Islands Pub. Fin. Auth. RB, Sr. Lien,
Ser. A, 5.50%, 10/01/2018.................. BBB- 6,000,000 5,715,840
------------
16,112,568
------------
Utility - 2.4%
Crossings at Fleming Island, FL CDD Util.
RB:
6.75%, 10/01/2025.......................... NR 1,525,000 1,501,347
7.375%, 10/01/2019......................... NR 1,080,000 1,118,945
Maricopa Cnty., AZ PCRB, 6.375%,
08/01/2015................................. BB+ 5,000,000 5,004,050
St. Lucie West Svcs. Dist., FL Utility RB,
6.00%, 10/01/2022, (Insd. by MBIA)......... AAA 2,000,000 2,123,640
------------
9,747,982
------------
Water & Sewer - 5.9%
Maine Fin. Auth. Solid Wst. Disposal RB,
Boise Cascade Corp. Proj., 7.90%,
06/01/2015................................. BB+ 1,500,000 1,531,335
Northern Palm Beach Cnty., FL Wtr. Ctl. &
Impt. Dist. RB:
Unit Dev. No. 5B, 6.00%, 08/01/2025........ NR 2,015,000 1,932,063
Unit Dev. No. 9B:
5.90%, 08/01/2019.......................... NR 1,000,000 963,560
6.00%, 08/01/2029.......................... NR 1,500,000 1,430,790
</TABLE>
42
<PAGE>
EVERGREEN
Florida High Income Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Water & Sewer - continued
Polk Cnty., FL IDA RB, Tampa Elec. Co.
Proj., 5.85%, 12/01/2030................... A1+ $ 2,000,000 $ 2,034,200
Seminole, FL Wtr. Ctl. Dist. Spl. Assmt. RB,
Unit of Dev. No. 2, 7.25%, 08/01/2022...... NR 1,830,000 1,862,849
St. Lucie West Svcs. Dist., FL Utility RB,
7.00%, 10/01/2010.......................... NR 9,855,000 9,953,451
Wabash, IN Solid Wst. Disposal RB, Jefferson
Smurfit Corp. Proj., 7.50%, 06/01/2026..... NR 4,000,000 4,021,880
------------
23,730,128
------------
Total Municipal Obligations (cost
$399,179,890)............................ 392,869,473
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
SHORT-TERM INVESTMENTS - 0.4%
MUTUAL FUND SHARES - 0.4%
Federated Municipal Obligations
Fund (Cost $1,657,000)........ 1,657,000 1,657,000
------------
Total Investments - (cost $400,836,890) -
97.9%.................................... 394,526,473
Other Assets and Liabilities - 2.1%........ 8,665,096
------------
Net Assets - 100.0%........................ $403,191,569
============
</TABLE>
See Combined Notes to Schedules of Investments.
43
<PAGE>
EVERGREEN
Florida Municipal Bond Fund
Schedule of Investments
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - 98.4%
Airport - 3.0%
Florida Ports Fin. Commission RB, State
Trans. Trust Fund Intermodal:
5.50%, 10/01/2010, (Insd. by FGIC).......... AAA $1,840,000 $ 1,922,469
5.50%, 10/01/2011, (Insd. by FGIC).......... AAA 3,570,000 3,720,297
5.50%, 10/01/2012, (Insd. by FGIC).......... AAA 3,455,000 3,570,742
Hillsborough Cnty., FL Aviation RB, Tampa
Int'l. Arpt., Ser. A, 5.50%, 10/01/2008..... AAA 6,470,000 6,747,757
------------
15,961,265
------------
Community Development District - 1.4%
Grand Haven, FL CDD, Spl. Assmt. RB, 6.30%,
05/01/2002.................................. NR 7,240,000 7,270,915
------------
Continuing Care Retirement Community - 5.4%
Collier Cnty., FL Hlth. Facs. Auth. RB:
6.25%, 12/01/2007........................... A- 700,000 721,266
6.375%, 12/01/2008.......................... A- 700,000 723,772
The Moorings, Inc. Proj., 7.00%,
12/01/2019................................. A- 500,000 517,890
Connecticut Dev. Auth. RB, Church Homes, Inc.
Proj., 5.80%, 04/01/2021.................... BBB 1,550,000 1,314,385
Escambia Cnty., FL Hlth. Facs. Auth. RB,
Azalea Trace Inc.:
6.00%, 01/01/2015........................... NR 2,560,000 2,269,005
6.10%, 01/01/2019........................... NR 1,310,000 1,135,730
Jacksonville FL Hlth. Facs. Auth. IDRB:
Cypress Vlg.:
7.00%, 03/01/2020........................... NR 1,290,000 1,302,784
7.05%, 03/01/2024........................... NR 825,000 822,657
Natl. Benevolent-Cypress Vlg., 6.40%,
12/01/2016................................. NR 1,825,000 1,764,045
Lee Cnty., FL IDA Hlth. Care RB, Shell Point
Vlg. Proj., Ser. A, 5.25%, 11/15/2004....... BBB- 1,150,000 1,115,765
Orange Cnty., FL Hlth. Facs. Auth. RB,
Lakeside Alternatives, Inc., 6.50%,
07/01/2013.................................. BBB 3,000,000 2,908,440
Palm Beach Cnty., FL HFA RB, Waterford Proj.,
5.50%, 10/01/2015........................... BBB 6,750,000 6,099,637
Palm Beach Cnty., FL Hlth. Facs. Auth. RB:
Abbey Delray South Proj., 5.20%,
10/01/2006................................. BBB 975,000 948,772
Waterford Proj.:
4.80%, 10/01/2002........................... BBB 795,000 789,507
5.00%, 10/01/2003........................... BBB 635,000 627,666
5.00%, 10/01/2004........................... BBB 875,000 857,998
5.10%, 10/01/2005........................... BBB 920,000 898,536
5.20%, 10/01/2006........................... BBB 965,000 939,042
5.30%, 10/01/2007........................... BBB 990,000 960,241
Sarasota Cnty., FL Hlth. Facs. Auth. RB,
Sunnyside Property, 6.00%, 05/15/2010....... NR 1,800,000 1,680,516
------------
28,397,654
------------
</TABLE>
44
<PAGE>
EVERGREEN
Florida Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Education - 5.5%
Broward Cnty., FL Edl. Facs. Auth. RB:
6.25%, 04/01/2013............................ AA $2,955,000 $ 3,234,602
6.25%, 04/01/2015............................ AA 2,290,000 2,478,467
Broward Cnty., FL Hlth. Facs. Auth. RB:
5.25%, 08/15/2010............................ NR 4,660,000 4,779,762
5.50%, 08/15/2014............................ NR 3,730,000 3,831,941
Dade Cnty., FL Edl. Facs. Auth. RB, St. Thomas
Univ.:
6.00%, 01/01/2010, (LOC: Sun Bank Miami)..... AA- 2,000,000 2,116,020
6.00%, 01/01/2014, (LOC: Sun Bank Miami)..... AA- 2,000,000 2,091,500
Miami Dade Cnty., FL Edl. Facs. Auth. RB, Ser.
A, 5.75%, 04/01/2012, (Insd. by AMBAC)....... AAA 2,950,000 3,170,070
Pinellas Cnty., FL Edl. Facs. Auth. RB, Barry
Univ. Proj.:
4.65%, 10/01/2004............................ BBB 410,000 401,681
4.90%, 10/01/2007............................ BBB 470,000 455,867
4.95%, 10/01/2008............................ BBB 495,000 478,561
Volusia Cnty., FL Edl. Facs. Auth. RB, Embry-
Riddle Aero:
Ser. A, 6.125%, 10/15/2016................... NR 3,500,000 3,625,265
Ser. A, 6.125%, 10/15/2026................... NR 2,600,000 2,653,898
------------
29,317,634
------------
Electric Revenue - 1.9%
Lakeland, FL Elec. & Wtr. RB, Energy Sys.
First Lien:
6.05%, 10/01/2010, (Insd. by FSA)............ AAA 5,000,000 5,532,650
6.55%, 10/01/2007, (Insd. by FSA)............ AAA 4,000,000 4,463,720
------------
9,996,370
------------
Escrow - 10.7%
Florida, Board of Ed. Capital Outlay, Pub. Ed.
GO, Ser. C, 7.00%, 06/01/2004................ AAA 1,250,000 1,265,175
Hialeah, FL Hsg. Auth. RB, Muni. Hsg., 9.50%,
11/01/2021................................... AAA 12,505,000 16,005,400
Leon Cnty., FL Edl. Facs. Auth. COP:
9.00%, 09/01/2004............................ AAA 1,045,000 1,219,139
9.00%, 09/01/2005............................ AAA 1,140,000 1,370,246
9.00%, 09/01/2006............................ AAA 1,245,000 1,536,006
9.00%, 09/01/2007............................ AAA 1,355,000 1,711,162
9.00%, 09/01/2008............................ AAA 1,475,000 1,904,151
9.00%, 09/01/2009............................ AAA 1,610,000 2,118,889
9.00%, 09/01/2010............................ AAA 1,755,000 2,348,295
9.00%, 09/01/2011............................ AAA 1,915,000 2,590,286
9.00%, 09/01/2012............................ AAA 2,085,000 2,846,796
9.00%, 09/01/2013............................ AAA 2,275,000 3,129,263
Orange Cnty., FL Hlth. Facs. Auth. RB:
5.30%, 10/01/2006............................ AAA 5,225,000 5,445,077
5.50%, 10/01/2008............................ AAA 5,785,000 6,132,910
5.70%, 10/01/2011............................ AAA 2,000,000 2,149,660
Pasco Cnty., FL Hlth. Facs. Auth., Hosp. RB,
5.60%, 10/01/2010............................ AAA 5,000,000 5,184,200
------------
56,956,655
------------
</TABLE>
45
<PAGE>
EVERGREEN
Florida Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
General Obligation - Local - 3.2%
Broward Cnty., FL GO, Ser. C, 6.00%,
01/01/2004.................................. AA $3,000,000 $ 3,113,520
Broward Cnty., FL Sch. Dist. GO, 5.40%,
02/15/2005.................................. AA- 3,000,000 3,112,740
Duval Cnty., FL Sch. Dist. GO, 5.90%,
08/01/2002, (Insd. by AMBAC)................ AAA 3,000,000 3,073,740
Flagler Cnty., FL Sch. Dist. GO, 5.85%,
09/01/2002.................................. AAA 2,500,000 2,547,750
Palm Beach Cnty., FL GO, 6.50%, 07/01/2010... AA 1,880,000 2,143,877
Seminole Cnty., FL GO, Sch. Dist., 6.00%,
08/01/2003, (Insd. by MBIA)................. AAA 3,000,000 3,128,250
------------
17,119,877
------------
General Obligation - State - 1.0%
Broward Cnty., FL Expressway Auth. GO,
9.875%, 07/01/2009.......................... AA+ 4,000,000 5,253,440
------------
Hospital - 19.5%
Alachua Cnty., FL Hlth. Facs. Auth. RB,
Shands Teaching Hosp., Ser. A, 6.25%,
12/01/2016, (Insd. by MBIA)................. AAA 4,000,000 4,412,640
Baker Cnty., FL Hosp. Auth. Hlth. Facs. RB:
4.10%, 12/01/2001........................... A 285,000 282,267
4.60%, 12/01/2006........................... A 200,000 191,510
Brevard Cnty., FL Hlth. Facs. Auth. RB:
Courtenay Springs Vlg., 7.375%, 11/15/2004.. NR 625,000 659,481
Windover Oaks, 6.90%, 02/01/2027, (Insd. by
FNMA)...................................... AAA 3,750,000 4,062,863
Escambia Cnty., FL Hlth. Facs. Auth. RB,
Baptist Hosp. Inc., Ser. B, 6.00%,
10/01/2014.................................. BBB+ 2,950,000 2,765,979
Halifax, FL Hosp. Med. Ctr. Hlth. Care Facs.
RB:
4.60%, 04/01/2008........................... A 1,080,000 1,020,341
Mgmt. Sys.:
4.40%, 04/01/2004........................... A 580,000 562,959
4.50%, 04/01/2005........................... A 1,000,000 965,810
Hillsborough Cnty., FL Hosp. Auth. RB,
6.375%, 10/01/2013.......................... AAA 3,440,000 3,611,863
Hillsborough Cnty., FL Idl. Dev. RB, Health
Facs. Proj. Univ. Community Hosp., 4.90%,
08/15/2007.................................. BBB+ 1,750,000 1,639,505
Jacksonville FL Hlth. Facs. Auth. Hospital:
Charity Obl. Group,:
Ser. C, 5.75%, 08/15/2012................... NR 4,300,000 4,567,632
Ser. C, 5.75%, 08/15/2013................... NR 4,550,000 4,833,192
Ser. C, 5.75%, 08/15/2014................... NR 2,810,000 2,984,894
Ser. C, 5.75%, 08/15/2015................... NR 2,090,000 2,220,082
St. Luke's Hosp. Assn. Proj., 7.125%,
11/15/2020................................. AA+ 9,500,000 9,947,925
Jacksonville FL Hlth. Facs. Auth. IDRB, Natl.
Benevolent-Cypress Vlg., 6.25%, 12/01/2026.. NR 1,245,000 1,107,540
Lee Cnty., FL IDA Hlth. Care RB, Shell Point
Vlg. Proj., Ser. A, 5.75%, 11/15/2014....... BBB- 1,535,000 1,379,412
</TABLE>
46
<PAGE>
EVERGREEN
Florida Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Hospital - continued
Leesburg, FL Hosp. RB, Leesburg Regl. Med. Ctr. Proj.:
Ser. A, 5.60%, 07/01/2008............................................ A $5,000,000 $ 5,126,950
Ser. A, 5.625%, 07/01/2013........................................... A 1,515,000 1,519,636
Ser. A, 5.70%, 07/01/2018............................................ A 4,890,000 4,788,875
Ser. A, 6.125%, 07/01/2012........................................... A 5,000,000 5,151,950
Ser. A, 6.125%, 07/01/2018........................................... A 3,000,000 3,046,590
North Miami, FL Hlth. Facs. Auth. RB, Catholic Hlth. Svcs. Obl. Group,
6.00%, 08/15/2016.................................................... NR 1,000,000 1,039,010
Orange Cnty., FL Hlth. Facs. Auth. RB, Orlando Regl. Healthcare Sys.,
5.75%, 10/01/2012, (Insd. by MBIA)................................... AAA 8,010,000 8,513,188
Palm Beach Cnty., FL Hlth. Facs. Auth. RB:
4.80%, 10/01/2002.................................................... BBB 805,000 799,438
5.00%, 10/01/2003.................................................... BBB 775,000 766,049
5.00%, 10/01/2004.................................................... BBB 850,000 833,484
5.10%, 10/01/2005.................................................... BBB 930,000 908,303
9.50%, 08/01/2013.................................................... AAA 2,630,000 3,384,547
Abbey Delray South Proj., 5.30%, 10/01/2007.......................... BBB 1,000,000 969,940
Good Samaritan Hlth. Sys.:
6.20%, 10/01/2011.................................................... NR 3,695,000 3,943,747
6.30%, 10/01/2022.................................................... NR 6,000,000 6,421,020
Palm Beach Cnty., FL IDA RB, Resource, Geriatric Care, Inc. Proj.,
6.55%, 12/01/2016.................................................... A+ 2,000,000 2,100,500
Polk Cnty., FL IDA RB, Winter Haven Hosp. Remarketed,
6.25%, 09/01/2015, (Insd. by MBIA)................................... AAA 6,670,000 7,054,125
Tallahassee, FL Hlth. Facs. RB, Tallahassee Mem. Regl. Med. Ctr.,
6.625%, 12/01/2013, (Insd. by MBIA).................................. AAA 200,000 216,892
------------
103,800,139
------------
Housing - 14.2%
Broward Cnty., FL HFA RB, 7.125%, 03/01/2017, (Insd. by GNMA)......... AAA 1,070,000 1,094,086
Dade Cnty., FL SFHRB, 7.00%, 03/01/2024............................... NR 155,000 158,886
Duval Cnty., FL HFA SFHRB:
7.30%, 07/01/2011.................................................... AAA 55,000 56,724
7.35%, 07/01/2024, (Insd. by GNMA)................................... AAA 750,000 774,570
Duval Cnty., FL Single Family Mtge. RB, 5.85%, 10/01/2027............. NR 8,085,000 8,278,636
Escambia Cnty., FL HFA Single Family Mtge., 5.75%, 10/01/2031......... NR 5,750,000 5,840,103
Florida Hsg. Fin. Agcy. RB:
6.35%, 05/01/2026, (Insd. by GNMA)................................... BBB+ 1,635,000 1,682,726
6.55%, 07/01/2017.................................................... AAA 635,000 656,006
6.875%, 10/01/2012................................................... AAA 1,895,000 1,921,321
Homeownership Mtge., 7.50%, 09/01/2014............................... AA 75,000 76,500
Multifamily Hsg., 6.20%, 08/01/2016.................................. AAA 2,000,000 2,057,760
Florida Hsg. Fin. Corp. RB:
Ser. 4, 5.85%, 07/01/2031, (Insd. by FSA)............................ AAA 2,785,000 2,839,280
Ser. 4, 6.00%, 01/01/2021, (Insd. by FSA)............................ AAA 10,940,000 11,242,491
</TABLE>
47
<PAGE>
EVERGREEN
Florida Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Housing - continued
Florida Hsg. Fin. Corp. RB - continued:
Hsg. Sunset Place:
Ser. 4, 5.15%, 10/01/2006.................. A $ 740,000 $ 733,503
Ser. 4, 5.50%, 10/01/2009.................. A 455,000 447,961
Hialeah, FL Hsg. Auth. RB, Refunding Hsg.
Patterson Pavilion, 5.15%, 05/01/2008...... NR 1,330,000 1,319,945
Lee Cnty., FL HFA, SFHRB:
7.00%, 09/01/2031.......................... NR 2,760,000 2,928,719
Multi Cnty. Program:
6.25%, 07/01/2019, (Insd. by GNMA)......... AAA 610,000 632,460
6.50%, 03/01/2031.......................... NR 1,400,000 1,465,464
7.125%, 03/01/2028......................... NR 700,000 766,094
7.20%, 03/01/2033.......................... NR 1,470,000 1,616,632
Manatee Cnty., FL HFA Mtge. RB:
Single Family, SubSer.1, 7.20%,
05/01/2028................................ NR 1,675,000 1,855,297
Single Family, SubSer.2, 7.00%,
11/01/2027................................ NR 2,340,000 2,607,953
Miami Dade Cnty., FL HFA RB, Villa Esperanza
Apts. Proj., 4.90%,10/01/2011.............. A 805,000 753,206
North Tampa, FL Hsg. Dev. Corp. RB, Country
Oaks Apt., 6.90%, 01/01/2024, (Insd. by
FNMA)...................................... NR 1,000,000 1,027,870
Orange Cnty., FL HFA RB, 5.625%,
09/01/2028................................. NR 3,000,000 3,023,490
Pasco Cnty., FL HFA RB, Multifamily Hsg.,
Oak Trail Apts. Proj., 5.35%, 06/01/2027... AA 3,695,000 3,699,323
Pinellas Cnty., FL HFA MFHRB, Emerald Bay
Apts., 5.35%, 04/01/2028................... AAA 3,240,000 3,162,046
Pinellas Cnty., FL HFA SFHRB:
6.30%, 03/01/2029.......................... NR 5,265,000 5,406,734
7.25%, 09/01/2029.......................... NR 1,000,000 1,112,700
Multi Cnty. Program:
5.95%, 03/01/2030.......................... NR 2,820,000 2,882,970
7.20%, 09/01/2029.......................... NR 3,000,000 3,282,810
------------
75,404,266
------------
Industrial Development Revenue - 8.3%
Escambia Cnty., FL PCRB, Champion Intl.
Corp. Proj.: 5.875%, 06/01/2022............ BBB+ 5,455,000 5,144,992
6.40%, 09/01/2030.......................... NR 1,500,000 1,505,115
Lake Cnty., FL Resource Recovery IDRB, NRG
Recovery Group, Inc.:
Ser. 1993-A, 5.85%, 10/01/2009............. BBB+ 4,000,000 4,011,960
Ser. A, 5.95%, 10/01/2013.................. BBB+ 4,850,000 4,849,709
Miami Dade Cnty., FL IDA RB, Spl. Facs.
United Air Lines Inc. Proj., 6.05%,
03/01/2035................................. NR 15,755,000 15,890,808
Polk Cnty., FL IDA RB, Cargill Fertilizer,
Inc. Proj., 5.50%, 11/01/2009.............. A+ 11,300,000 11,576,963
St. Johns Cnty., FL IDA, 6.00%, 08/01/2008.. A- 945,000 971,092
------------
43,950,639
------------
</TABLE>
48
<PAGE>
EVERGREEN
Florida Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Miscellaneous Revenue - 1.8%
Gulf Breeze, FL RB:
5.15%, 12/01/2015........................... AAA $3,955,000 $ 4,094,888
5.40%, 12/01/2015........................... AAA 1,620,000 1,675,112
5.50%, 12/01/2020........................... AAA 1,645,000 1,697,821
5.70%, 12/01/2020........................... AAA 2,095,000 2,152,613
------------
9,620,434
------------
Public Facilities - 4.4%
Florida Division Bond Fin. Dept. RB, Dept. of
Env. Preservation 2000:
5.25%, 07/01/2007, (Insd. by MBIA).......... AAA 8,555,000 8,897,713
6.00%, 07/01/2006, (Insd. by MBIA).......... AAA 5,600,000 6,017,480
Miami Beach, FL Redev. Agcy. Tax Increment
RB, City Ctr. Historic Convention Vlg.:
5.80%, 12/01/2013........................... BBB 3,000,000 3,042,030
5.875%, 12/01/2022.......................... BBB 2,000,000 2,002,380
Palm Beach Cnty., FL Criminal Justice Facs.
RB, 7.20%, 06/01/2015, (Insd. by FGIC)...... AAA 3,000,000 3,628,350
------------
23,587,953
------------
Resource Recovery - 1.0%
Dade Cnty., FL Solid Wst. Sys., Spl. Obl.,
6.00%, 10/01/2006, (Insd. by AMBAC)......... AAA 5,000,000 5,367,550
------------
Sales Tax - 1.2%
Jacksonville, FL Excise Taxes RB:
Ser. B, 5.75%, 10/01/2012, (Insd. by FGIC).. AAA 2,805,000 2,954,002
Ser. B, 5.75%, 10/01/2013, (Insd. by FGIC).. AAA 3,050,000 3,192,374
------------
6,146,376
------------
Special Tax - 2.0%
Florida Division Bond Fin. Dept. RB, 5.75%,
07/01/2010.................................. AAA 6,475,000 6,811,182
Miami Beach, FL Redev. Agcy. Tax Increment
RB, City Ctr. Historic Convention Vlg.,
5.625%, 12/01/2009.......................... BBB 2,000,000 2,038,280
Northern Palm Beach Cnty., FL Wtr. Ctl. &
Impt. Dist. RB:
Unit Dev. No. 5D, 5.50%, 08/01/2015......... NR 500,000 473,200
Unit Dev. No. 9A, Ser. A, 7.20%,
08/01/2016................................. NR 1,300,000 1,388,400
------------
10,711,062
------------
Transportation - 6.2%
Dade Cnty., FL Aviation RB, Ser. W, 5.90%,
10/01/2005, (Insd. by AMBAC)................ AAA 10,830,000 11,284,643
Florida Turnpike Auth., Turnpike RB, Dept. of
Trans., Ser. A,
6.90%, 07/01/2002, (Insd. by AMBAC)......... AAA 2,000,000 2,079,120
Orlando & Orange Cnty., FL Expressway Auth.
RB:
5.375%, 07/01/2010, (Insd. by AMBAC)........ AAA 10,000,000 10,266,400
6.50%, 07/01/2011, (Insd. by FGIC).......... AAA 4,550,000 5,197,101
</TABLE>
49
<PAGE>
EVERGREEN
Florida Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Transportation - continued
Orlando & Orange Cnty., FL Expressway Auth.
RB - continued
8.25%, 07/01/2015, (Insd. by FGIC)........... AAA $ 40,000 $ 52,639
Volusia Cnty., FL Arpt. Sys. RB:
6.35%, 10/01/2001............................ AAA 705,000 718,310
6.45%, 10/01/2002............................ AAA 750,000 777,225
6.55%, 10/01/2003............................ AAA 790,000 832,984
6.65%, 10/01/2004............................ AAA 845,000 906,119
6.75%, 10/01/2005............................ AAA 905,000 987,129
------------
33,101,670
------------
Utility - 2.4%
Gainesville, FL Util. Sys. RB:
Ser. B, 6.50%, 10/01/2013.................... AA 4,800,000 5,500,032
Ser. B, 7.50%, 10/01/2008.................... AA 3,000,000 3,570,450
Ser. B, 7.50%, 10/01/2009.................... AA 3,000,000 3,615,090
------------
12,685,572
------------
Water & Sewer - 5.3%
Hillsborough Cnty., FL Utility RRB, Ser. A,
7.00%, 08/01/2014............................ BBB+ 2,415,000 2,506,215
North Springs, FL Wtr. & Swr. RB, 6.50%,
10/01/2016, (Insd. by MBIA).................. AAA 1,335,000 1,443,282
Northern Palm Beach Cnty., FL Impt.:
Wtr. Ctl. & Impt. Unit Dev. Number 5B, 5.75%,
08/01/2014.................................. NR 1,195,000 1,162,615
Wtr. Ctl. & Impt. Unit Dev. Number 9B, 5.85%,
08/01/2013.................................. NR 1,000,000 982,190
Orlando, FL Util. Commission, Wtr. & Elec. RB,
6.00%, 10/01/2010............................ AA 4,000,000 4,410,240
Pembroke Pines, FL Cons. Util. Sys. RB, 6.25%,
09/01/2004, (Insd. by FGIC).................. AAA 2,500,000 2,619,400
Reedy Creek, FL Impt. Dist., RB, 6.15%,
06/01/2003, (Insd. by MBIA).................. AAA 595,000 609,036
Texas Gulf Coast Wst. Disposal Auth. RB,
7.45%, 05/01/2026............................ BBB+ 5,000,000 5,184,800
Virgin Islands, Wtr. & Pwr. Auth. RB:
5.125%, 07/01/2012........................... NR 6,550,000 6,337,911
5.375%, 07/01/2010........................... NR 2,945,000 2,966,027
------------
28,221,716
------------
Total Municipal Obligations (cost
$510,891,539).............................. 522,871,187
------------
<CAPTION>
Shares Value
<S> <C> <C> <C>
SHORT-TERM INVESTMENTS - 0.2%
MUTUAL FUND SHARES - 0.2%
Federated Municipal Obligations Fund.................. 1,098,000 1,098,000
Federated Tax Free Obligations Fund................... 68,000 68,000
------------
Total Short-Term Investments (cost $1,166,000)...... 1,166,000
------------
Total Investments - (cost $512,057,539) - 98.6%.................... 524,037,187
Other Assets and Liabilities - 1.4%................................ 7,395,769
------------
Net Assets - 100.0%................................................ $531,432,956
============
</TABLE>
See Combined Notes to Schedules of Investments.
50
<PAGE>
EVERGREEN
Georgia Municipal Bond Fund
Schedule of Investments
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - 99.3%
Airlines - 2.2%
Fulton Cnty., GA Dev. Auth. Spl. Facs. RB,
Delta Airlines, Inc. Proj., 5.30%,
05/01/2013.................................. BBB- $2,000,000 $ 1,858,380
-----------
Airport - 4.0%
Atlanta, GA Arpt. Facs. RB:
Ser. A, 6.50%, 01/01/2006, (Insd. by
AMBAC)..................................... AAA 2,000,000 2,180,720
Ser. A, 6.50%, 01/01/2010, (Insd. by
AMBAC)..................................... AAA 1,000,000 1,128,210
-----------
3,308,930
-----------
Continuing Care Retirement Community - 6.0%
Fulton Cnty., GA Residential Care Facs. RB:
Canterbury Court Proj., 6.20%, 10/01/2019... BBB+ 1,820,000 1,691,271
Sr. Lien, RHA Assisted Living Buckhead, Ser.
A, 6.90%, 07/01/2019....................... NR 1,500,000 1,353,360
Gainesville & Hall Cnty., GA Dev. Auth. RB,
Sr. Living Facs., Lanier Vlg. Estates:
Ser. C, 6.75%, 11/15/2015................... NR 1,000,000 974,870
Ser. C, 7.25%, 11/15/2029................... NR 1,000,000 955,620
-----------
4,975,121
-----------
Education - 0.9%
Georgia Private Colleges & Univ. Auth. RB,
Emory Univ. Proj., Ser. A, 5.50%,
11/01/2024.................................. AA 750,000 747,953
-----------
Electric Revenue - 4.2%
Georgia Muni. Elec. Auth. Pwr. RB:
Ser. B, 6.25%, 01/01/2017, (Insd. by MBIA-
IBC)....................................... AAA 1,000,000 1,101,720
Ser. EE, 7.25%, 01/01/2024, (Insd. by
AMBAC)..................................... AAA 400,000 497,160
Monroe Cnty., GA Dev. Auth. PCRB, Oglethorpe
Pwr. Corp., Ser. A, 6.70%, 01/01/2009,
(Insd. by MBIA-IBC)......................... AAA 1,000,000 1,130,030
Virgin Islands Wtr. & Pwr. Auth. Elec. Sys.
RB, 5.25%, 07/01/2008....................... NR 750,000 753,772
-----------
3,482,682
-----------
Escrow - 1.7%
Fulton Cnty., GA Wtr. & Swr. ETM RB, 6.375%,
01/01/2014, (Insd. by FGIC)................. AAA 390,000 438,454
Metro. Atlanta, GA Rapid Transit Auth. Sales
Tax RB, Ser. D, 7.00%, 07/01/2011, (Insd. by
FGIC)....................................... AAA 830,000 983,558
-----------
1,422,012
-----------
General Obligation - Local - 19.0%
Cartersville, GA GO, 6.70%, 01/01/2012....... A 120,000 136,117
DeKalb Cnty., GA Sch. Dist. GO, Ser. A,
6.25%, 07/01/2011........................... AA 500,000 561,100
Effingham Cnty., GA Sch. Dist. GO:
6.25%, 02/01/2007, (Insd. by MBIA).......... AAA 1,260,000 1,375,064
6.25%, 02/01/2008, (Insd. by MBIA).......... AAA 1,160,000 1,276,777
6.25%, 02/01/2009, (Insd. by MBIA).......... AAA 500,000 554,070
</TABLE>
51
<PAGE>
EVERGREEN
Georgia Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
General Obligation - Local - continued
Fayette Cnty., GA Sch. Dist. GO:
6.125%, 03/01/2015.......................... A+ $ 600,000 $ 642,936
6.25%, 03/01/2006........................... A+ 2,200,000 2,383,524
Forsyth Cnty., GA Sch. Dist. GO:
6.00%, 02/01/2014........................... AA- 1,000,000 1,080,710
6.75%, 07/01/2016........................... AA- 1,000,000 1,158,030
Gwinnett Cnty., GA Wtr. & Swr. COP, 8.60%,
08/01/2003.................................. AAA 2,500,000 2,782,450
Hall Cnty., GA Sch. Dist. GO:
6.45%, 12/01/2009, (Insd. by AMBAC)......... AAA 1,210,000 1,324,720
6.70%, 12/01/2014, (Insd. by AMBAC)......... AAA 500,000 552,200
Peach Cnty., GA Sch. Dist. GO, 6.50%,
02/01/2006, (Insd. by MBIA)................. AAA 525,000 573,636
Washington Cnty., GA Sch. Dist. GO, 6.875%,
01/01/2014, (Insd. by AMBAC)................ AAA 1,300,000 1,444,118
-----------
15,845,452
-----------
General Obligation - State - 2.5%
Forsyth Cnty., GA GO, 6.125%, 03/01/2017..... AA- 1,000,000 1,075,580
Georgia GO, Ser. B, 7.00%, 11/01/2008........ AAA 1,000,000 1,024,320
-----------
2,099,900
-----------
Hospital - 15.3%
Baldwin Cnty., GA Hosp. Auth. RB, Oconne
Regl. Med. Ctr.:
5.25%, 12/01/2012........................... BBB 1,465,000 1,321,547
5.35%, 12/01/2014........................... BBB 565,000 498,443
5.40%, 12/01/2015........................... BBB 630,000 551,729
Coffee Cnty., GA Hosp. Auth. RB, Coffee Regl.
Med. Ctr., Ser. A, 6.75%, 12/01/2016........ NR 1,600,000 1,495,936
Gainesville & Hall Cnty., GA Hosp. Auth. RB,
Northeast GA Hlth. Sys., Inc. Proj., 6.00%,
05/15/2014, (Insd. by MBIA)................. AAA 2,340,000 2,503,145
Glynn-Brunswick, GA Mem. Hosp. Auth. RB,
Southeast GA Hlth. Sys., Inc. Proj., 6.00%,
08/01/2016, (Insd. by MBIA)................. AAA 2,050,000 2,151,147
Med. Ctr. Hosp. Auth., GA RB, Columbus Regl.
Healthcare Sys., 6.10%, 08/01/2014, (Insd.
by MBIA).................................... AAA 2,000,000 2,153,580
Savannah, GA Hosp. Auth. RB, St. Joseph's
Hosp. Proj.:
6.125%, 07/01/2012.......................... NR 1,500,000 1,592,985
6.20%, 07/01/2023........................... NR 500,000 531,980
-----------
12,800,492
-----------
Housing - 4.6%
Clayton Cnty., GA Hsg. Auth. Mtge. RB,
Multifamily Park Walk Apts., Ltd., 7.125%,
12/01/2025, (Insd. by FHA & FNMA)........... NR 500,000 528,735
DeKalb Cnty., GA Hsg. Auth. MHRB:
North Hill Apts. Proj., 6.625%, 01/01/2025,
(Insd. by FNMA)............................ AAA 1,425,000 1,492,075
The Lakes at Indian Creek Proj., 7.15%,
01/01/2025, (Insd. by FSA)................. AAA 500,000 527,180
</TABLE>
52
<PAGE>
EVERGREEN
Georgia Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Housing - continued
Georgia Hsg. & Fin. Auth. RB:
5.80%, 12/01/2021................................................ AAA $1,000,000 $ 998,440
Ser. A-2, 6.55%, 12/01/2027, (Insd. by FHA & Gtd. by Veterans
Administration Mtgs.)........................................... AAA 265,000 269,322
-----------
3,815,752
-----------
Industrial Development Revenue - 9.3%
Appling Cnty., GA Dev. Auth. PCRB, Oglethorpe Pwr. Corp.,
Hatch Proj.:
7.125%, 01/01/2015, (Insd. by MBIA).............................. AAA 1,055,000 1,135,602
7.15%, 01/01/2021, (Insd. by MBIA)............................... AAA 500,000 537,780
Brunswick & Glynn Cnty., GA Dev. Auth. RB, Georgia Pacific Corp.
Proj., 5.55%, 03/01/2026......................................... NR 2,000,000 1,803,860
Camden Cnty., GA Joint Dev. Auth. PCRB, Union Carbide Corp. Proj.,
5.00%, 01/01/2012................................................ BBB 300,000 271,908
Cartersville, GA Dev. Auth. RB, Wtr. & Wastewater Facs. Anheuser-
Busch Co., Inc., 7.40%, 11/01/2010............................... A+ 1,820,000 2,148,073
Effingham Cnty., GA Dev. Auth. Solid Wst. Disp. RB, Fort James
Proj., 5.625%, 07/01/2018........................................ BBB- 2,000,000 1,860,460
-----------
7,757,683
-----------
Public Facilities - 9.4%
Butts Cnty., GA COP, 6.75%, 12/01/2014, (Insd. by MBIA)........... AAA 300,000 326,157
College Park, GA Business & IDA RB, Civic Ctr. Proj.:
5.40%, 09/01/2012, (Insd. by AMBAC).............................. AAA 350,000 363,930
5.75%, 09/01/2020, (Insd. by AMBAC).............................. AAA 1,825,000 1,884,130
Ser. A, 5.70%, 09/01/2009, (Insd. by FSA)........................ AAA 1,000,000 1,074,220
Ser. A, 5.75%, 09/01/2010, (Insd. by FSA)........................ AAA 1,470,000 1,578,868
Fayette Cnty., GA Pub. Facs. Auth. RB, Criminal Justice Ctr.
Proj., 6.25%, 06/01/2017......................................... AA- 550,000 593,945
Middle, GA Coliseum Auth. RB, GA Coliseum Proj., Ser. A,
5.375%, 07/01/2014............................................... AA 1,000,000 1,007,630
Savannah, GA EDA RB, Mighty Eighth Air Force, 5.875%, 01/01/2012.. AA 1,000,000 1,041,870
-----------
7,870,750
-----------
Solid Waste - 1.1%
Albany Dougherty, GA Payroll Dev. Auth. Solid Wst. Disp. RB,
Proctor & Gamble Proj., 5.20%, 05/15/2028........................ AA 1,000,000 923,890
-----------
Special Tax - 2.0%
Frederick Cnty., MD Spl. Obl. RB, Urbana CDA, 6.625%, 07/01/2025.. NR 750,000 730,770
Virgin Islands Pub. Fin. Auth. RB, Sr. Lien, Ser. A,
5.50%,10/01/2018................................................. BBB- 1,000,000 952,640
-----------
1,683,410
-----------
</TABLE>
53
<PAGE>
EVERGREEN
Georgia Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Transportation - 1.3%
Metro. Atlanta, GA Rapid Transit Auth. Sales
Tax RB, Ser. P, 6.25%, 07/01/2011, (Insd. by
AMBAC)...................................... AAA $1,000,000 $ 1,116,820
-----------
Water & Sewer - 15.8%
Clayton Cnty., GA Wtr. Auth. Wtr. & Swr. RB,
6.25%, 05/01/2016........................... AA 2,000,000 2,174,740
Columbia Cnty., GA Wtr. & Swr. RB:
6.25%, 06/01/2015, (Insd. by FGIC).......... AAA 1,200,000 1,301,988
6.25%, 06/01/2016, (Insd. by FGIC).......... AAA 1,250,000 1,350,262
6.25%, 06/01/2017, (Insd. by FGIC).......... AAA 1,390,000 1,497,086
Conyers, GA Wtr. & Swr. RB, Ser. A, 6.60%,
07/01/2015, (Insd. by AMBAC)................ AAA 1,000,000 1,076,010
Forsyth Cnty., GA Wtr. & Swr. Auth. RB,
6.25%, 04/01/2017........................... AA- 1,000,000 1,083,730
Fulton Cnty., GA Wtr. & Swr. RB, 6.25%,
01/01/2006, (Insd. by FGIC)................. AAA 1,420,000 1,533,075
Gainesville, GA Wtr. & Swr. RB:
5.25%, 11/15/2010, (Insd. by FGIC).......... AAA 1,000,000 1,039,990
Ser. B, 7.20%, 11/15/2010, (Insd. by FGIC).. AAA 1,000,000 1,025,740
Virgin Islands Wtr. & Pwr. Auth. Elec. Sys.
RB, 5.30%, 07/01/2018....................... NR 1,250,000 1,146,925
-----------
13,229,546
-----------
Total Municipal Obligations (cost
$80,824,730).............................. 82,938,773
-----------
<CAPTION>
Shares Value
<S> <C> <C>
SHORT-TERM INVESTMENTS - 1.0%
MUTUAL FUND SHARES - 1.0%
Evergreen Select Municipal Money Market Fund
(cost $890,126) o........................... 890,126 890,126
-----------
Total Investments - (cost $81,714,856) - 100.3%......... 83,828,899
Other Assets and Liabilities - (0.3%)................... (290,103)
-----------
Net Assets - 100.0%..................................... $83,538,796
===========
</TABLE>
See Combined Notes to Schedules of Investments.
54
<PAGE>
EVERGREEN
Maryland Municipal Bond Fund
Schedule of Investments
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - 96.1%
Continuing Care Retirement Community - 7.5%
Fulton Cnty., GA Residential Care Facs. RB,
Sr. Lien, RHA Assisted Living Buckhead, Ser.
A, 6.90%, 07/01/2019......................... NR $ 500,000 $ 451,120
Maryland Hlth. & Higher Edl. Facs. Auth. RB:
Catholic Hlth. Initiatives, 6.00%,
12/01/2013.................................. AA- 1,200,000 1,271,076
Refunding Pickersgill, Ser. A, 5.85%,
01/01/2010.................................. A- 600,000 610,224
New Jersey Healthcare Facs. Fin. Auth. RB,
Robert Wood Johnson Univ. Hosp. Proj., 5.70%,
07/01/2020................................... A+ 925,000 922,308
-----------
3,254,728
-----------
Education - 5.1%
Annapolis, MD EDRB, St. John's College Facs.,
5.50%, 10/01/2018............................ BBB+ 1,230,000 1,140,874
Univ. of MD Sys. Auxilliary Facs. & Tuition
RB:
Ser. A, 5.40%, 04/01/2009.................... AA+ 1,000,000 1,041,500
Ser. A, 6.30%, 02/01/2009.................... AA+ 50,000 51,402
-----------
2,233,776
-----------
Electric Revenue - 3.1%
Prince Georges Cnty., MD PCRB, Potomac Elec.
Proj.,
5.75%, 03/15/2010............................ A 1,250,000 1,334,088
-----------
General Obligation - Local - 10.7%
Anne Arundel Cnty., MD GO, 5.25%, 04/15/2010.. AA+ 250,000 255,742
Hagerstown, MD GO, 5.50%, 09/01/2009.......... NR 275,000 285,079
Montgomery Cnty., MD GO, Ser. A, 5.375%,
01/01/2007................................... AAA 1,500,000 1,571,535
Ocean City, MD GO, 5.50%, 03/15/2009, (Insd.
by MBIA)..................................... AAA 1,000,000 1,040,570
Prince Georges Cnty., MD GO:
5.125%, 10/01/2012........................... AA 1,240,000 1,262,890
Stormwater Mgmt., 5.40%, 03/15/2007.......... AA 250,000 258,933
-----------
4,674,749
-----------
General Obligation - State - 2.4%
Maryland GO, State & Local Facs. Loan, 5.70%,
03/15/2010................................... AAA 1,000,000 1,058,310
-----------
Hospital - 5.8%
Maryland Hlth. & Higher Edl. Facs. Auth. RB:
Calvert Mem. Hosp., 5.00%, 07/01/2019........ NR 300,000 267,954
Doctors Cmnty. Hosp., Inc.:
5.50%, 07/01/2024............................ BBB- 735,000 585,111
5.75%, 07/01/2013............................ BBB- 400,000 352,816
Union Hosp. of Cecil Cnty., 4.80%,
07/01/2011.................................. NR 330,000 299,937
Univ. of Maryland Med. Sys. Proj., 6.625%,
07/01/2020.................................. NR 1,000,000 1,020,410
-----------
2,526,228
-----------
Housing - 15.2%
Chesapeake, VA Redev. & Hsg. Auth. MHRB, Ser.
A,
6.20%, 04/01/2028............................ NR 630,000 573,010
</TABLE>
55
<PAGE>
EVERGREEN
Maryland Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Housing - continued
Maryland CDA Dept. of Hsg. & Cmnty. Dev. RB:
Ser. A, 6.875%, 06/01/2006, (Insd. by
AMBAC)...................................... AAA $ 150,000 $ 155,648
Ser. D, 6.20%, 09/01/2020, (Insd. by FHA
Mtges.)..................................... NR 750,000 773,220
Ser. F, 5.90%, 09/01/2019.................... NR 1,000,000 1,006,240
Ser. H, 5.65%, 09/01/2012, (Insd. by FHA).... NR 1,365,000 1,394,934
Maryland CDA Dept. of Hsg. & Cmnty. Dev.
SFHRB:
Ser. 3, 6.90%, 04/01/2005, (Insd. by FHA).... NR 100,000 103,052
Ser. 5, 5.40%, 04/01/2008.................... NR 1,470,000 1,516,776
Montgomery Cnty., MD Single Family Mtge. RB,
Ser. A,
5.55%, 07/01/2014............................ NR 1,105,000 1,119,221
-----------
6,642,101
-----------
Industrial Development Revenue - 10.7%
Baltimore, MD Port Facs. RB, E.I. Dupont De
Nemours Corp.,
6.50%, 12/01/2010............................ AA- 800,000 845,552
Calvert Cnty., MD PCRB, Baltimore Gas & Elec.
Co. Proj.,
5.55%, 07/15/2014............................ A 2,015,000 2,048,127
Cecil Cnty., MD IDRB, Cargill, Inc. Proj.,
5.25%, 03/01/2006............................ A+ 1,000,000 1,030,780
Maryland Energy Fin. Admin. Ltd. Obl. RB,
Office Paper Sys., Inc. Proj., Ser. A, 7.50%,
09/01/2015................................... NR 750,000 726,457
-----------
4,650,916
-----------
Lease - 5.0%
Maryland Stadium Auth. Lease RB, Convention
Ctr. Expansion Proj., 5.875%, 12/15/2011,
(Insd. by AMBAC)............................. AAA 1,800,000 1,900,818
Prince Georges Cnty., MD COP, Real Estate
Acquistion Program, 5.90%, 09/15/2009, (Insd.
by MBIA)..................................... AAA 250,000 265,362
-----------
2,166,180
-----------
Pre-Refunded - 0.7%
Howard Cnty., MD Prerefunded Cons. Pub. Impt.
GO, Ser. A,
5.25%, 08/15/2011............................ AAA 295,000 305,650
-----------
Public Facilities - 2.3%
Baltimore Cnty., MD Rev. Auth. RB, 5.25%,
07/01/2008................................... NR 1,000,000 1,021,300
-----------
Special Tax - 4.6%
Anne Arundel Cnty., MD Spl. Obl. RB, Arundel
Mills Proj.,
7.10%, 07/01/2029............................ NR 1,000,000 1,015,710
Frederick Cnty., MD Spl. Obl. RB, Urbana CDA,
6.625%, 07/01/2025........................... NR 1,000,000 974,360
-----------
1,990,070
-----------
Transportation - 7.1%
District of Columbia Metro. Area Transit Auth.
RB, 6.00%, 07/01/2010, (Insd. by FGIC)....... AAA 300,000 327,933
</TABLE>
56
<PAGE>
EVERGREEN
Maryland Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Transportation - continued
Maryland Trans. Auth. Spl. Obl. RB,
Baltimore/Washington Intl. Arpt. Proj., Ser.
A, 6.25%, 07/01/2014, (Insd. by FGIC)........ AAA $1,750,000 $ 1,842,190
Maryland Trans. Facs. Auth. RB, 5.80%,
07/01/2006................................... A+ 850,000 904,289
-----------
3,074,412
-----------
Water & Sewer - 15.9%
Baltimore, MD Refunding Wtr. Proj. RB, Ser. A,
5.80%, 07/01/2015, (Insd. by FGIC)........... AAA 1,500,000 1,561,005
Northeast, MD Wst. Disp. Auth. Solid Wst. RB,
Montgomery Cnty. Resource Recovery Proj.,
Ser. A, 6.30%, 07/01/2016.................... NR 740,000 761,978
Virgin Islands Wtr. & Pwr. Auth. Elec. Sys.
RB:
5.125%, 07/01/2003........................... NR 500,000 503,765
5.30%, 07/01/2018............................ NR 750,000 688,155
Washington, MD Suburban Sanitation Dist. GO,
5.375%, 06/01/2011........................... AA 1,600,000 1,639,216
Washington, MD Suburban Sanitation Dist. Wtr.
Supply RB,
5.50%, 06/01/2010............................ AA 1,700,000 1,768,561
-----------
6,922,680
-----------
Total Municipal Obligations (cost
$41,323,254)............................... 41,855,188
-----------
<CAPTION>
Shares Value
<S> <C> <C>
SHORT-TERM INVESTMENTS - 4.7%
MUTUAL FUND SHARES - 4.7%
Federated Municipal Obligations Fund.......... 1,628,000 1,628,000
Federated Tax Free Obligations Fund........... 414,000 414,000
-----------
Total Short-Term Investments (cost
$2,042,000)................................ 2,042,000
-----------
Total Investments - (cost $43,365,254) - 100.8%.................... 43,897,188
Other Assets and Liabilities - (0.8%).............................. (368,495)
-----------
Net Assets - 100.0%................................................ $43,528,693
===========
</TABLE>
See Combined Notes to Schedules of Investments.
57
<PAGE>
EVERGREEN
North Carolina Municipal Bond Fund
Schedule of Investments
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - 97.1%
Airlines - 0.5%
Cmnwlth. of Puerto Rico Port Auth. RB,
American Airlines Proj.,
Ser. A, 6.25%, 06/01/2026................. BBB- $ 1,400,000 $ 1,427,356
------------
Airport - 2.3%
Charlotte, NC Airport RB:
5.75%, 07/01/2012, (Insd. by MBIA)........ AAA 2,395,000 2,507,589
5.875%, 07/01/2014, (Insd. by MBIA)....... AAA 1,000,000 1,043,480
6.00%, 07/01/2015, (Insd. by MBIA)........ AAA 2,755,000 2,886,882
------------
6,437,951
------------
Continuing Care Retirement Community - 5.8%
North Carolina Med. Care Commission Hosp.
RB:
Deerfield Episcopal, 5.30%, 11/01/2004.... NR 11,595,000 11,339,446
Glenaire Proj.:
5.85%, 07/01/2027........................ NR 3,550,000 2,924,206
5.75%, 07/01/2019........................ NR 2,000,000 1,666,420
------------
15,930,072
------------
Education - 2.8%
Iredell Cnty., RB Pub Facs., School
Projects, 6.00%, 06/01/2016............... NR 2,080,000 2,201,451
North Carolina Student Edl. Assistance
Auth. RB:
6.05%, 07/01/2010......................... NR 1,000,000 1,038,380
6.30%, 07/01/2015......................... NR 2,000,000 2,072,660
6.35%, 07/01/2016......................... NR 2,375,000 2,473,658
------------
7,786,149
------------
Electric Revenue - 15.6%
North Carolina Eastern Muni. Pwr. Agcy.,
Pwr. Sys. RB:
5.625%, 01/01/2014........................ AAA 7,850,000 8,040,676
5.70%, 01/01/2013, (Insd. by MBIA)........ AAA 5,000,000 5,186,800
6.00%, 01/01/2018, (Insd. by AMBAC)....... AAA 6,500,000 6,957,665
6.50%, 01/01/2018......................... BBB 3,750,000 3,896,475
7.50%, 01/01/2010......................... AAA 1,845,000 2,202,229
Ser. B, 7.00%, 01/01/2013, (Insd. by
MBIA).................................... AAA 3,400,000 3,989,118
Ser. C, 6.00%, 01/01/2022................. BBB 5,000,000 4,836,150
North Carolina Muni. Pwr. Agcy., Elec. RB,
Catawba Elec.:
7.25%, 01/01/2007, (Insd. by AMBAC)....... AAA 5,000,000 5,688,050
10.50%, 01/01/2010........................ AAA 1,780,000 2,277,279
------------
43,074,442
------------
Escrow - 2.5%
Franklin Cnty., NC COP, 6.20%, 06/01/2004,
(Insd. by FGIC)........................... AAA 1,025,000 1,088,417
North Carolina Eastern Muni. Pwr. Agcy.,
Pwr. Sys. RB, 5.00%, 01/01/2021........... AAA 5,000,000 4,772,400
</TABLE>
58
<PAGE>
EVERGREEN
North Carolina Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Escrow - continued
North Carolina Med. Care Commission Hosp. RB,
Presbyterian Hlth. Svcs. Co. Proj., 7.30%,
10/01/2015.................................. NR $ 925,000 $ 945,720
------------
6,806,537
------------
General Obligation - Local - 13.2%
Cumberland Cnty., NC GO:
5.90%, 02/01/2010........................... AA- 2,100,000 2,210,334
5.90%, 02/01/2011........................... AA- 2,100,000 2,210,334
5.90%, 02/01/2012........................... AA- 2,100,000 2,210,334
Durham Cnty., NC GO, Pub. Impt. Bonds:
5.80%, 02/01/2010........................... AAA 2,400,000 2,545,152
5.80%, 02/01/2011........................... AAA 2,400,000 2,538,240
Eden Cnty., NC GO, Refunding Water And Sewer:
5.75%, 06/01/2002........................... AAA 860,000 877,002
5.75%, 06/01/2003........................... AAA 855,000 880,060
5.75%, 06/01/2004........................... AAA 845,000 876,873
5.75%, 06/01/2005........................... AAA 835,000 872,233
5.75%, 06/01/2006........................... AAA 825,000 866,440
5.75%, 06/01/2007........................... AAA 815,000 857,682
Mecklenburg Cnty., NC GO Pub. Impt. Bonds:
5.00%, 04/01/2009........................... AAA 6,500,000 6,673,160
5.40%, 04/01/2008........................... AAA 4,095,000 4,275,671
5.40%, 04/01/2009........................... AAA 5,000,000 5,212,150
New Hanover Cnty., NC, Pub. Impt. GO Utah,
5.75%, 11/01/2013........................... AA- 3,000,000 3,217,050
------------
36,322,715
------------
General Obligation - State - 3.3%
Charlotte, NC GO, 5.00%, 02/01/2010.......... AAA 5,000,000 5,120,550
Cmnwlth. of Puerto Rico GO:
5.70%, 07/01/2003........................... A- 1,000,000 1,045,580
6.25%, 07/01/2009, (Insd. by MBIA).......... AAA 2,535,000 2,876,997
------------
9,043,127
------------
Hospital - 14.1%
Charlotte, NC Mecklenberg Hosp. RB:
5.75%, 01/01/2012........................... AA 1,050,000 1,070,275
NC Hlth. Care Sys., 6.00%, 01/01/2005....... AA 1,000,000 1,036,130
Cmnwlth. of Puerto Rico RB, Mennonite General
Hosp. Proj.:
5.625%, 07/01/2017.......................... BBB- 1,335,000 1,127,007
5.625%, 07/01/2027.......................... BBB- 500,000 395,145
Cumberland Cnty., NC Hosp. Facs. RB,
Cumberland Cnty. Hosp. Sys. Inc.:
5.00%, 10/01/2006........................... A- 3,520,000 3,476,317
5.25%, 10/01/2010........................... A- 1,310,000 1,282,857
5.25%, 10/01/2011........................... A- 900,000 870,597
</TABLE>
59
<PAGE>
EVERGREEN
North Carolina Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Hospital - continued
North Carolina Med. Care Commission Hosp. RB:
Carolina Medicorp Proj., 6.30%, 05/01/2001.. AA- $ 920,000 $ 931,067
Gaston Hlth. Care, 5.375%, 02/15/2011....... A+ 2,630,000 2,646,385
Grace Hosp. Inc.:
5.25%, 10/01/2013........................... A+ 3,825,000 3,698,354
6.50%, 10/01/2005........................... A+ 1,110,000 1,185,924
6.50%, 10/01/2006........................... A+ 1,180,000 1,267,957
High Point Regl. Hlth. Sys., 5.50%,
10/01/2008,
(Insd. by AMBAC)........................... AAA 1,605,000 1,691,558
Presbyterian Hlth. Svcs. Co. Proj., 6.125%,
10/01/2014................................. NR 900,000 948,834
Rex Hosp. Proj.:
6.125%, 06/01/2010.......................... A+ 2,500,000 2,656,725
6.25%, 06/01/2017........................... A+ 3,700,000 3,943,793
Stanley Mem. Hosp. Proj.:
5.375%, 10/01/2014, (Insd. by AMBAC)........ AAA 5,000,000 5,053,600
6.50%, 10/01/2013........................... A 2,585,000 2,737,722
North Carolina Med. Care Commission Hosp. RB,
Transylvania Community Hosp. Inc.:
4.90%, 10/01/2003........................... NR 155,000 152,681
5.00%, 10/01/2004........................... NR 155,000 151,711
5.00%, 10/01/2005........................... NR 175,000 169,748
5.05%, 10/01/2006........................... NR 185,000 178,102
5.15%, 10/01/2007........................... NR 190,000 182,037
5.50%, 10/01/2012........................... NR 1,130,000 1,001,666
5.75%, 10/01/2019........................... NR 1,090,000 919,862
------------
38,776,054
------------
Housing - 16.4%
Burlington, NC Burlington Homes RB, 6.00%,
08/01/2009.................................. NR 1,090,000 1,106,383
Charlotte, NC Hsg. Dev. Corp., RB, 6.60%,
07/15/2021.................................. NR 1,380,000 1,405,171
Durham Cnty., NC MHRB, Ivy Commons Proj.,
8.00%, 03/01/2029........................... NR 2,750,000 2,707,567
Fremont, NC Hsg. Dev. Corp. RB, Torhunta
Apts., 6.75%, 07/15/2022, (Insd. by FHA).... NR 910,000 931,522
North Carolina HFA RB:
4.90%, 01/01/2024........................... AA 1,990,000 1,968,588
5.35%, 07/01/2024........................... AA 10,060,000 10,039,075
5.55%, 01/01/2025........................... AA 3,500,000 3,539,900
5.95%, 01/01/2027........................... AA 3,000,000 3,077,430
6.00%, 07/01/2011........................... AA 2,135,000 2,245,337
6.10%, 07/01/2013........................... AA 2,390,000 2,496,211
</TABLE>
60
<PAGE>
EVERGREEN
North Carolina Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Housing - continued
North Carolina Hsg. Fin. & Dev. Auth.,
SFHRB:
5.90%, 09/01/2013.......................... AA $ 1,045,000 $ 1,075,838
6.15%, 03/01/2011.......................... AA 3,505,000 3,574,504
6.20%, 09/01/2009.......................... AA 820,000 839,901
7.05%, 09/01/2020.......................... AA 940,000 975,006
Raleigh, NC Hsg. Auth. MHRB:
Ser. A, 5.80%, 11/01/2019.................. A- 3,000,000 2,888,310
Cedar Point Apts.:
Ser. A, 5.10%, 11/01/2010.................. A- 3,170,000 3,079,211
Ser. C, 7.00%, 11/01/2030.................. NR 3,600,000 3,359,232
------------
45,309,186
------------
Industrial Development Revenue - 4.8%
Craven Cnty., NC GO, Indl. Facs. & Pollution
Ctl. Fin. Auth. RB, Weyerhaeuser Co. Proj.,
6.35%, 01/01/2010.......................... A 4,000,000 4,109,480
Haywood Cnty., NC Indl. Facs. & Pollution
Ctl. Fin. RB, Champion Intl. Corp. Proj.:
6.00%, 03/01/2020.......................... NR 2,500,000 2,435,600
6.25%, 09/01/2025.......................... NR 1,750,000 1,732,535
Martin Cnty., NC, Indl. Facs. & Pollution
Ctl. Fin. Auth. RB, Weyerhaeuser Co. Proj.,
6.80%, 05/01/2024.......................... A 4,750,000 4,901,050
------------
13,178,665
------------
Lease - 5.7%
Chapel Hill, NC Parking Facs., COP, 6.35%,
12/01/2018................................. A+ 1,000,000 1,041,340
Charlotte, NC COP:
6.00%, 06/01/2014.......................... AA+ 1,475,000 1,532,112
Cityfair Parking Fac. Proj., 6.125%,
06/01/2010................................ AA 1,735,000 1,837,625
Convention Parking Fac. Proj., 6.65%,
12/01/2003, (Insd. by AMBAC).............. AAA 1,000,000 1,045,930
Stadium Parking Fac. Proj., 6.00%,
06/01/2010................................ AA+ 1,245,000 1,309,616
Durham Cnty., NC COP, New Durham Corp.:
Ser. A, 5.25%, 12/01/2010.................. AA 1,160,000 1,206,550
Ser. B, 5.25%, 12/01/2011.................. AA 1,485,000 1,534,614
Greensboro, NC COP, Colliseum Arena
Expansion Proj.:
6.40%, 12/01/2001.......................... NR 1,000,000 1,024,100
6.65%, 12/01/2004.......................... NR 1,100,000 1,151,348
Harnett Cnty., NC COP:
6.20%, 12/01/2009, (Insd. by AMBAC)........ AAA 2,900,000 3,106,219
6.40%, 12/01/2014, (Insd. by AMBAC)........ AAA 1,000,000 1,079,920
------------
15,869,374
------------
</TABLE>
61
<PAGE>
EVERGREEN
North Carolina Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Pre-Refunded - 1.9%
Cumberland Cnty., NC COP, Civic Ctr. Proj.,
6.40%, 12/01/2024, (Insd. by AMBAC)......... AAA $ 2,390,000 $ 2,613,943
Gastonia, NC Combined Util. Sys. RB:
6.00%, 05/01/2014, (Insd. by MBIA).......... AAA 1,000,000 1,070,970
6.10%, 05/01/2019, (Insd. by MBIA).......... AAA 1,505,000 1,616,852
------------
5,301,765
------------
Public Facilities - 0.4%
Pitt Cnty., NC COP Pub. Facs., 5.55%,
04/01/2012,
(Insd. by MBIA)............................. AAA 1,000,000 1,041,070
------------
Resource Recovery - 2.2%
North Carolina Coastal Regl. Solid Wst. Mgmt.
Auth., RB, Solid Wst. Disposal Sys., 6.50%,
06/01/2008.................................. BBB+ 1,000,000 1,053,620
Pennsylvania EDA RB, Colver Proj. Ser. D,
7.15%, 12/01/2018........................... BBB- 5,000,000 5,120,300
------------
6,173,920
------------
Sales Tax - 1.8%
Virgin Islands, Pub. Fin. Auth. RB, 5.20%,
10/01/2010.................................. BBB- 5,000,000 4,882,200
------------
Water & Sewer - 3.8%
Fayetteville, NC Pub. Works Commission RB:
6.75%, 03/01/2003, (Insd. by AMBAC)......... AAA 1,360,000 1,433,236
Ser. A, 6.00%, 03/01/2012, (Insd. by FSA)... AAA 2,000,000 2,078,740
Greensboro, NC Combined Enterprise Sys. RB:
5.20%, 06/01/2010........................... AA- 1,615,000 1,656,424
6.50%, 06/01/2002........................... AA- 880,000 911,020
6.50%, 06/01/2003........................... AA- 1,050,000 1,105,881
Texas Wtr. Dev. Board RB, 5.75%, 07/15/2016.. AAA 3,275,000 3,349,965
------------
10,535,266
------------
Total Municipal Obligations (cost
$262,252,103)............................. 267,895,849
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
SHORT-TERM INVESTMENTS - 1.8%
MUTUAL FUND SHARES - 1.8%
Federated Municipal Obligations Fund.................. 5,047,000 5,047,000
Federated Tax Free Obligations Fund................... 11,000 11,000
------------
Total Short-Term Investments (cost $5,058,000)...... 5,058,000
------------
Total Investments - (cost $267,310,103) - 98.9%................... 272,953,849
Other Assets and Liabilities - 1.1%............................... 2,954,593
------------
Net Assets - 100.0%............................................... $275,908,442
============
</TABLE>
See Combined Notes to Schedules of Investments.
62
<PAGE>
EVERGREEN
South Carolina Municipal Bond Fund
Schedule of Investments
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - 97.7%
Airport - 0.5%
Horry Cnty., SC Arpt. RB, Ser. A, 5.60%,
07/01/2017, (Insd. by FSA)................... AAA $ 300,000 $ 299,973
-----------
Continuing Care Retirement Community - 1.5%
Fulton Cnty., GA Residential Care Facs. RB,
Sr. Lien, RHA Assisted Living Buckhead, Ser.
A, 6.90%, 07/01/2019......................... NR 1,000,000 902,240
-----------
Education - 5.3%
Clemson University, SC Univ. RB:
6.00%, 05/01/2012, (Insd. by AMBAC).......... AAA 540,000 584,247
6.00%, 05/01/2013, (Insd. by AMBAC).......... AAA 1,000,000 1,076,630
Richland Cnty., SC Edl. Facs. RB, Benedict
College Proj.,
6.25%, 07/01/2014............................ AA 1,190,000 1,278,108
South Carolina Edl. Assistance Auth. RB, Gtd.
Student Loans,
5.875%, 09/01/2007........................... A 250,000 259,255
-----------
3,198,240
-----------
Electric Revenue - 7.8%
Piedmont, SC Muni. Pwr. Agcy., Elec. RB:
6.10%, 01/01/2006, (Insd. by MBIA)........... AAA 1,000,000 1,075,050
6.25%, 01/01/2009, (Insd. by MBIA)........... AAA 1,150,000 1,276,673
South Carolina Pub. Svc. Auth. RB, Ser. B:
5.70%, 01/01/2008, (Insd. by FGIC)........... AAA 1,000,000 1,060,720
6.50%, 01/01/2006, (Insd. by FGIC)........... AAA 1,250,000 1,359,862
-----------
4,772,305
-----------
Escrow - 0.8%
Calhoun Cnty., SC Solid Wst. Disposal Facs.
RB, Eastman Kodak Co. Proj., 6.75%,
05/01/2017................................... A+ 400,000 457,384
-----------
General Obligation - Local - 20.1%
Anderson Cnty., SC GO, Sch. Dist. No. 002,
Ser. B:
5.25%, 03/01/2019............................ AA+ 1,000,000 978,010
6.00%, 03/01/2014............................ AA+ 1,200,000 1,294,056
6.00%, 03/01/2016............................ AA+ 1,325,000 1,414,358
Clover, SC GO, Sch. Dist. No. 002, York Cnty.,
5.125%, 03/01/2012, (Insd. by MBIA).......... AAA 700,000 707,651
Cmnwlth. of Puerto Rico GO, 5.65%, 07/01/2015,
(Insd. by MBIA).............................. AAA 3,000,000 3,199,050
Florence Cnty., SC GO, Sch. Dist. No. 001:
5.80%, 05/01/2007, (Insd. by FGIC)........... AAA 1,150,000 1,203,072
5.80%, 05/01/2008, (Insd. by FGIC)........... AAA 1,175,000 1,227,417
5.80%, 05/01/2009, (Insd. by FGIC)........... AAA 1,200,000 1,251,588
Greenville, SC Mem. Auditorium Dist. GO, Bi-Lo
Ctr. Proj.,
5.75%, 04/01/2018, (Insd. by AMBAC).......... AAA 400,000 430,668
Laurens Cnty., SC GO, Sch. Dist. No. 055,
5.50%, 03/01/2014............................ AAA 500,000 515,285
-----------
12,221,155
-----------
</TABLE>
63
<PAGE>
EVERGREEN
South Carolina Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
General Obligation - State - 5.4%
Berkeley Cnty., SC Sch. Dist. GO, 5.375%,
04/01/2015................................... AA+ $1,000,000 $ 1,015,290
Richland Cnty., SC GO, Sch. Dist. No. 001,
5.75%, 03/01/2017............................ AA+ 2,160,000 2,246,530
-----------
3,261,820
-----------
Hospital - 14.5%
Charleston Cnty., SC Hlth. Facs. RB, 1st Mtge.
Episcopal Church Proj.:
6.25%, 04/01/2019............................ NR 750,000 660,848
7.125%, 04/01/2020........................... NR 300,000 297,942
Greenville, SC Hosp. Facs. RB, Ser. B, 5.60%,
05/01/2010................................... AA 1,115,000 1,151,349
Loris, SC Community Hosp. RB, Ser. A, 5.50%,
01/01/2016................................... BBB 1,500,000 1,331,355
Loris, SC Community Sch. Hosp. Dist. RB, Ser.
B,
5.625%, 01/01/2020........................... BBB 500,000 424,425
South Carolina Jobs EDA Hosp. Facs. RB:
Anderson Area Med. Ctr.:
5.50%, 02/01/2011, (Insd. by FSA)............ AAA 265,000 275,645
5.625%, 02/01/2010, (Insd. by FSA)........... AAA 1,050,000 1,106,826
Georgetown Mem. Hosp., 6.00%, 11/01/2014..... NR 1,600,000 1,695,040
Spartanburg Cnty., SC Hlth. Svcs. Dist. Income
RB, Ser. B,
6.00%, 04/15/2007, (Insd. by MBIA)........... AAA 1,755,000 1,879,324
-----------
8,822,754
-----------
Housing - 12.6%
Chesapeake, VA Redev. & Hsg. Auth. MHRB, Ser.
A,
6.20%, 04/01/2028............................ NR 1,260,000 1,146,020
South Carolina Hsg. Fin. & Dev. Auth. MHRB:
Hunting Ridge Apts., 6.75%, 06/01/2025....... BBB+ 265,000 273,226
Runaway Bay Apts. Proj., 6.125%, 12/01/2015.. AA- 300,000 303,021
Ser. A, 6.80%, 11/15/2011, (Coll. by FHA &
Insd. by FNMA).............................. NR 100,000 103,482
South Carolina Hsg. Fin. & Dev. Auth. Mtge.
RB:
Heritage Ct. Apts., Ser. A:
5.85%, 07/01/2010, (Insd. by FHA)............ NR 680,000 691,125
6.15%, 07/01/2025, (Insd. by FHA)............ NR 595,000 597,886
Ser. A:
5.95%, 07/01/2029, (Insd. by AMBAC).......... AAA 500,000 501,965
6.35%, 07/01/2025, (Insd. by FHA)............ NR 585,000 593,073
6.55%, 07/01/2015............................ NR 85,000 87,135
Ser. B1, 5.75%, 07/01/2015, (Insd. by FSA)... NR 3,300,000 3,361,281
-----------
7,658,214
-----------
Industrial Development Revenue - 4.4%
Darlington Cnty., SC IDRB:
Nucor Corp. Proj., Ser. A, 5.75%,
08/01/2023.................................. AA- 500,000 490,615
Sonoco Products Co. Proj., 6.00%,
04/01/2026.................................. A 750,000 743,175
South Carolina Jobs EDA Hosp. Facs. RB, Oconee
Mem. Hosp. Inc., 6.15%, 03/01/2015........... AAA 200,000 208,932
</TABLE>
64
<PAGE>
EVERGREEN
South Carolina Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Industrial Development Revenue - continued
South Carolina Jobs EDA-IDRB, Plasti-Line, Inc.
Proj.:
5.50%, 07/01/2006, (LOC: Keybank, NA)......... A $ 220,000 $ 222,631
5.70%, 07/01/2009, (LOC: Keybank, NA)......... A 200,000 202,242
5.80%, 07/01/2010, (LOC: Keybank, NA)......... A 190,000 192,387
5.90%, 07/01/2011, (LOC: Keybank, NA)......... A 230,000 232,884
6.25%, 07/01/2017, (LOC: Keybank, NA)......... A 400,000 403,612
-----------
2,696,478
-----------
Resource Recovery - 7.5%
Charleston Cnty., SC Resource Recovery RB,
Foster Wheeler:
5.15%, 01/01/2009, (Insd. by AMBAC)........... AAA 3,000,000 3,040,350
5.25%, 01/01/2010, (Insd. by AMBAC)........... AAA 1,500,000 1,527,585
-----------
4,567,935
-----------
Sales Tax - 2.3%
Virgin Islands Pub. Fin. Auth. RB, Sr. Lien,
Ser. A, 5.50%, 10/01/2018..................... BBB- 1,500,000 1,428,960
-----------
Special Tax - 1.2%
Frederick Cnty., MD Spl. Obl. RB, Urbana CDA,
6.625%, 07/01/2025............................ NR 750,000 730,770
-----------
Water & Sewer - 13.8%
Columbia, SC Wtrwks. & Swr. Sys. RB:
6.00%, 02/01/2014............................. AA 2,000,000 2,140,900
6.00%, 02/01/2015............................. AA 1,960,000 2,089,007
Florence, SC Wtr. & Swr. RB, 7.50%, 03/01/2014,
(Insd. by AMBAC).............................. AAA 695,000 829,184
Georgetown Cnty., SC Wtr. & Swr. Dist. RB,
Refunding & Impt. Jr. Lien, 6.50%,
06/01/2017.................................... NR 200,000 218,984
Grand Strand, SC Wtrwrks. & Swr. Sys. Auth. RB,
6.375%, 06/01/2012, (Insd. by MBIA)........... AAA 750,000 845,715
Greenwood, SC Combined Pub. Util. RB, Refunding
& Impt., 5.50%,12/01/2008, (Insd. by AMBAC)... AAA 1,000,000 1,036,290
Virgin Islands, Wtr. & Pwr. Auth. Elec. Sys.
RB, 5.25%, 07/01/2009......................... NR 1,250,000 1,252,537
-----------
8,412,617
-----------
Total Municipal Obligations (cost
$58,015,577)................................ 59,430,845
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
SHORT-TERM INVESTMENTS - 1.2%
MUTUAL FUND SHARES - 1.2%
Federated Municipal Obligations Fund...................... 720,000 720,000
Federated Tax Free Obligations Fund....................... 1,000 1,000
-----------
Total Short-Term Investments (cost $721,000)............ 721,000
-----------
Total Investments - (cost $58,736,577) - 98.9%...................... 60,151,845
Other Assets and Liabilities - 1.1%................................. 642,623
-----------
Net Assets - 100.0%................................................. $60,794,468
===========
</TABLE>
See Combined Notes to Schedules of Investments.
65
<PAGE>
EVERGREEN
Virginia Municipal Bond Fund
Schedule of Investments
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - 98.0%
Airport - 0.7%
Charlottesville-Albemarle, VA Arpt. Auth. RB,
6.125%, 12/01/2013.......................... BBB $ 250,000 $ 253,623
Chesapeake, VA Arpt. Auth. RB, 5.30%,
08/01/2019.................................. A- 1,000,000 933,620
------------
1,187,243
------------
Community Development District - 0.6%
Frederick Cnty., MD Spl. Tax RB, Urbana CDA,
6.25%, 07/01/2010........................... NR 1,000,000 964,370
------------
Continuing Care Retirement Community - 2.5%
Albemarle Cnty., VA IDA RB, Residential Care
Fac., Our Lady of Peace Inc.:
5.75%, 07/01/2019........................... NR 500,000 413,745
6.45%, 07/01/2015........................... NR 100,000 94,216
6.625%, 07/01/2021.......................... NR 145,000 137,699
Chesterfield Cnty., VA Hlth. Ctr. Community
Mtge. RB, Lucy Nursing Home Proj., 5.875%,
12/01/2021, (Coll. by GNMA)................. AAA 500,000 508,605
Fulton Cnty., GA Residential Care Facs. RB,
Sr. Lien, RHA Assisted Living Buckhead, Ser.
A, 6.90%, 07/01/2019........................ NR 1,000,000 902,240
James City Cnty., VA IDA RB, Residential Care
Fac., Williamsburg Landing, Inc., 6.625%,
03/01/2023.................................. NR 1,000,000 969,920
Virginia Beach, VA Dev. Auth. Hlth. Care Fac.
RB., Sentara Hlth.Sys., 5.25%, 11/01/2015... AA 1,250,000 1,221,800
------------
4,248,225
------------
Education - 3.6%
Virginia College, VA Edl. Fac. Bldg. Auth.
RB, Hampton Univ. Proj., 5.75%, 04/01/2014.. A+ 750,000 765,368
Virginia Pub. Sch. Auth. RB:
Ser. A, 6.125%, 08/01/2012.................. AA 4,000,000 4,271,200
Ser. A, 6.20%, 08/01/2014................... AA 200,000 213,350
Spl. Obl. York Cnty., 5.90%, 07/15/2013..... AA 850,000 887,230
------------
6,137,148
------------
Escrow - 0.5%
Henrico Cnty., VA Wtr. & Swr. RB, 5.70%,
05/01/2008.................................. AA- 715,000 758,050
------------
General Obligation - Local - 23.8%
Arlington Cnty., VA GO, 5.90%, 08/01/2010.... AAA 1,000,000 1,070,620
Chesapeake, VA Pub. Impt. GO, 5.375%,
05/01/2010.................................. AA 3,000,000 3,128,880
Chesterfield Cnty., VA GO:
5.25%, 03/01/2010........................... AAA 2,000,000 2,045,780
5.375%, 01/15/2011.......................... AAA 1,375,000 1,437,205
5.75%, 01/15/2016........................... AAA 1,700,000 1,778,829
5.75%, 01/15/2017........................... AAA 1,000,000 1,041,830
Ser. B, 6.70%, 01/01/2006................... AAA 1,000,000 1,027,690
</TABLE>
66
<PAGE>
EVERGREEN
Virginia Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
General Obligation - Local - continued
Culpeper Cnty., VA Sch. Auth. GO, 6.00%,
01/15/2019,
(Insd. by FSA).............................. AAA $1,640,000 $ 1,733,267
Hampton, VA GO:
6.00%, 01/15/2008........................... AA 500,000 538,705
Pub. Impt., 5.75%, 02/01/2013............... AA 1,125,000 1,200,701
King George Cnty., VA IDA Lease RB, King
George Cnty. Sch. Proj., 6.40%, 08/01/2016.. NR 700,000 713,251
Loudoun Cnty., VA GO, Ser. A, 5.50%,
10/01/2007.................................. AA 1,000,000 1,043,100
Lynchburg, VA Pub. Impt. RB:
5.40%, 06/01/2015........................... AA 590,000 599,186
5.50%, 06/01/2017........................... AA 670,000 678,623
Newport News, VA GO, 5.75%, 01/15/2017....... AA 1,940,000 2,006,232
Newport News, VA IDA RB, VA Advanced
Shipbuilding Carrier,
5.50%, 09/01/2010........................... AA+ 1,000,000 1,060,790
Norfolk, VA GO:
5.25%, 06/01/2011........................... AA 3,000,000 3,068,130
5.70%, 06/01/2008, (Insd. by MBIA).......... AAA 2,000,000 2,110,620
Northampton Cnty., VA GO, Ser. A, 5.30%,
07/15/2018,
(Insd. by FSA).............................. AAA 1,300,000 1,258,790
Prince William Cnty., VA GO, Impt. &
Refunding, Ser. A, 6.20%,12/01/2011 ........ NR 700,000 717,150
Roanoke, VA Pub. Impt. GO:
6.00%, 10/01/2013........................... AA 1,730,000 1,881,911
6.00%, 10/01/2014........................... AA 1,835,000 1,983,103
6.00%, 10/01/2015........................... AA 1,950,000 2,097,088
6.00%, 10/01/2016........................... AA 2,070,000 2,213,472
Suffolk, VA GO:
5.70%, 06/01/2010, (Insd. by AMBAC)......... AAA 250,000 265,728
5.90%, 06/01/2013, (Insd. by AMBAC)......... AAA 750,000 795,832
Virginia Beach, VA GO:
5.40%, 07/15/2009........................... AA 1,575,000 1,662,334
6.00%, 09/01/2009........................... AA 1,000,000 1,074,520
------------
40,233,367
------------
General Obligation - State - 0.8%
Cmnwlth. of Puerto Rico GO, Ser. A, 6.25%,
07/01/2013,
(Insd. by MBIA)............................. AAA 1,200,000 1,361,484
------------
Hospital - 7.6%
Albemarle Cnty., VA IDA RB, Martha Jefferson
Hosp., 5.75%,10/01/2008..................... NR 1,000,000 1,035,970
Danville, VA IDA Hosp. RB, Danville Regl.
Med. Ctr., 6.20%, 10/01/2009, (Insd. by
FGIC)....................................... AAA 2,545,000 2,734,730
</TABLE>
67
<PAGE>
EVERGREEN
Virginia Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Hospital - continued
Fairfax Cnty., VA IDA RB, Inova Hlth. Sys.
Proj.:
5.00%, 08/15/2012........................... AA $ 500,000 $ 497,320
5.875%, 08/15/2016.......................... AA 370,000 378,114
Halifax Cnty., VA IDA RB, Halifax Regl.
Hosp., Inc.:
4.80%, 09/01/2009........................... A 300,000 281,961
5.25%, 09/01/2017........................... A 400,000 361,584
Hanover Cnty., VA IDA RB, Mem. Regl. Med.
Ctr. Proj.,
6.50%, 08/15/2008, (Insd. by MBIA).......... AAA 2,360,000 2,637,536
Henrico Cnty., VA IDA Lease RB, Bon Secours
Hlth. Sys. Proj.,
5.60%, 08/15/2010, (Insd. by MBIA).......... AAA 2,000,000 2,095,300
Norfolk, VA IDA RB, Sentara Hosp., Ser. A,
6.50%, 11/01/2013........................... AA 1,000,000 1,066,140
Prince William Cnty., VA IDA RB, Potomac
Hosp. Corp.,
6.75%, 10/01/2015........................... NR 500,000 558,565
Roanoke, VA IDA Hosp. RB, Roanoke Mem. Hosp.,
Ser. B,
6.00%, 07/01/2007........................... AA- 1,185,000 1,227,861
------------
12,875,081
------------
Housing - 18.0%
Alexandria, VA Redev. & Hsg. Auth. MHRB,
Buckingham Vlg. Apts.:
5.45%, 07/01/2018........................... BBB+ 1,000,000 940,190
5.50%, 01/01/2029........................... BBB+ 1,000,000 919,470
Alexandria, VA Redev. & Hsg. Auth. RRB,
Buckingham Vlg. Apts.,
4.875%, 07/01/2006.......................... BBB+ 840,000 820,168
Arlington Cnty., VA IDA MHRB:
Patrick Henry Apts. Proj., 6.05%,
11/01/2032................................. NR 2,000,000 2,007,060
Woodbury Park Apts.:
Ser. A, 5.35%, 07/01/2018................... A 1,000,000 936,600
Ser. B, 6.50%, 07/01/2024................... NR 1,600,000 1,520,096
Chesapeake, VA Redev. & Hsg. Auth. MHRB, Ser.
A,
6.20%, 04/01/2028........................... NR 1,910,000 1,737,221
Fairfax Cnty., VA Redev. & Hsg. Auth. Mtge.
RB, Elderly Hsg.,
6.00%, 09/01/2016, (Insd. by FHA)........... AAA 500,000 511,460
Harrisonburg, VA Redev. & Hsg. Auth. MHRB,
Greens of Salem Run Proj., 6.20%,
04/01/2017, (LOC: PNC Bank, NA & Insd. by
FSA)........................................ AAA 500,000 509,620
Portsmouth, VA Redev. & Hsg. Auth. MHRB,
6.30%, 09/01/2026, (Coll.by FNMA)........... AAA 640,000 657,779
Prince William Cnty., VA IDA RB, Melrose
Apts. Proj.:
Ser. A, 5.25%, 07/01/2018................... A- 1,000,000 903,260
Ser. C, 7.00%, 07/01/2029................... NR 3,000,000 2,857,380
Virginia Hsg. Dev. Auth. MHRB:
Ser. H, 5.55%, 05/01/2015................... AA+ 1,000,000 997,530
Ser. H, 6.00%, 05/01/2010................... AA+ 500,000 513,470
Ser. H, 6.10%, 11/01/2011................... AA+ 1,000,000 1,029,650
Ser. H, 6.35%, 11/01/2011................... AA+ 300,000 310,620
</TABLE>
68
<PAGE>
EVERGREEN
Virginia Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Housing - continued
Virginia Hsg. Dev. Auth. MHRB: - continued
Ser. I, 5.45%, 05/01/2018................... AA+ $ 500,000 $ 489,640
Ser. K, 5.90%, 05/01/2011................... AA+ 400,000 408,860
Ser. O, 6.05%, 11/01/2017................... AA+ 500,000 514,305
Virginia Hsg. Dev. Auth. RB, Cmnwlth. Mtge.:
Ser. A, Subser. A-1, 6.20%, 07/01/2011...... AA+ 1,000,000 1,016,570
Ser. B, Subser. B-1, 5.80%, 07/01/2016...... AA+ 1,750,000 1,781,325
Ser. B, Subser. B-1, 5.95%, 07/01/2018...... AA+ 2,555,000 2,614,302
Ser. C, Subser. C-2, 5.75%, 07/01/2007...... AA+ 1,000,000 1,044,060
Ser. C, Subser. C-6, 6.25%, 01/01/2015...... AA+ 500,000 509,560
Ser. D, Subser. D-1, 6.10%, 01/01/2019...... AA+ 3,525,000 3,610,340
Ser. D, Subser. D-3, 6.10%, 07/01/2015...... AA+ 1,000,000 1,030,380
Ser. F, Subser. F-1, 6.25%, 07/01/2012...... AA+ 300,000 305,538
------------
30,496,454
------------
Industrial Development Revenue - 2.9%
Amherst, VA IDA RB, Georgia Pacific Corp.
Proj.,
5.25%, 02/01/2011........................... NR 1,000,000 978,780
Goochland Cnty., VA IDA RB, Nekoosa Packaging
Corp.,
5.65%, 12/01/2025........................... NR 3,000,000 2,744,220
Greensville Cnty., VA IDA RB, Georgia Pacific
Corp. Proj.,
5.30%, 08/01/2014........................... NR 250,000 239,080
Isle Wright Cnty., VA IDA RB, Solid Wst.
Disposal Fac., Union Camp Corp. Proj.,
6.55%, 04/01/2024........................... BBB+ 535,000 541,928
Virginia IDA RB, Small Business Fin., Hodges
Farm Associates II,
4.75%, 11/01/2002........................... AA- 460,000 459,503
------------
4,963,511
------------
Lease - 5.0%
Brunswick, VA IDA Correctional Fac. Lease RB:
5.65%, 07/01/2009, (Insd. by MBIA).......... AAA 2,215,000 2,342,495
5.75%, 07/01/2011, (Insd. by MBIA).......... AAA 2,930,000 3,092,117
Fairfax Cnty., VA Redev. & Hsg. Auth. Mtge.
RB, Mott & Gum Springs Cmnty. Ctrs., 5.35%,
06/01/2006.................................. AA 250,000 258,595
Henrico Cnty., VA IDA Lease RB, 7.00%,
08/01/2013.................................. AA 700,000 788,956
Prince William Cnty., VA Park Auth. RB,
6.30%, 10/15/2006........................... NR 500,000 541,615
Virginia Biotechnology Research Park RB,
Biotech Five Proj., Ser. A,
5.25%, 10/01/2014........................... A 1,540,000 1,457,749
------------
8,481,527
------------
Miscellaneous Revenue - 0.6%
Virginia Pub. Bldg. Auth. Pub. Fac. RB, Ser.
A, 6.00%, 08/01/2011........................ AA+ 1,000,000 1,093,760
------------
</TABLE>
69
<PAGE>
EVERGREEN
Virginia Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Public Facilities - 4.9%
Big Stone Gap, VA Redev. & Hsg. Auth.
Correctional Fac. Lease RB, Wallens Ridge
Dev. Proj., 6.00%, 09/01/2007............... AA+ $3,675,000 $ 3,957,608
King & Queen Cnty., VA IDA Lease RB, King &
Queen Courts Complex, Ser. A, 5.625%,
07/15/2017.................................. AA 1,000,000 1,000,960
Peumansend Creek, VA Regl. Jail Auth. RB,
5.75%, 06/01/2017, (Insd. by MBIA).......... AAA 1,300,000 1,343,173
Prince William Cnty., VA IDA RB, ATCC Proj.,
6.00%, 02/01/2014........................... NR 500,000 504,430
Prince William Cnty., VA Park Auth. RB,
6.875%, 10/15/2016.......................... NR 1,300,000 1,435,772
------------
8,241,943
------------
Resource Recovery - 2.5%
Arlington Cnty., VA IDA Resource Recovery RB,
Ogden Martin Sys. of Alexandria/Arlington,
Inc. Proj., 5.375%, 01/01/2013, (Insd. by
FSA)........................................ AAA 4,105,000 4,158,283
------------
Sales Tax - 0.6%
Virgin Islands Pub. Fin. Auth. RB, Sr. Lien,
Ser. A,
5.50%, 10/01/2022........................... BBB- 1,000,000 941,520
------------
Special Tax - 4.4%
Dulles Town, VA CDA Spl. Assmt. RB, Dulles
Town Ctr. Proj., 6.25%, 03/01/2026.......... NR 4,000,000 3,833,120
Frederick Cnty., MD Spl. Obl. RB, Urbana CDA,
6.625%, 07/01/2025.......................... NR 500,000 487,180
Virgin Islands Pub. Fin. Auth. RB, Sr. Lien:
Ser. A, 5.50%, 10/01/2013................... BBB- 1,000,000 977,180
Ser. A, 5.50%, 10/01/2018................... BBB- 2,000,000 1,905,280
Virgin Islands Pub. Fin. Auth. RB, Sr. Lien,
Ser. A, 5.625%, 10/01/2025.................. BBB- 250,000 237,753
------------
7,440,513
------------
Transportation - 6.9%
Chesapeake Bay, VA Dist. RB, Bridge & Tunnel
Commission,
5.875%, 07/01/2010, (Insd. by FGIC)......... AAA 2,890,000 3,076,087
District of Columbia, Metrop. Area Transit
Auth. RB:
6.00%, 07/01/2007, (Insd. by FGIC).......... AAA 1,000,000 1,078,790
6.00%, 07/01/2009, (Insd. by FGIC).......... AAA 600,000 654,456
Peninsula Ports Auth., VA RB, Port Fac. CSX
Trans. Proj., 6.00%,12/15/2012.............. NR 2,000,000 1,990,340
Virginia Comnwlth. Trans. Board RB, Northern
VA Trans. Dist. Program, Ser. B, 7.25%,
05/15/2020.................................. AA 1,700,000 1,954,915
Virginia Port Auth. Cmnwlth. Port Fund RB,
5.90%, 07/01/2016........................... AA 750,000 772,282
Virginia Trans. Board RB, Northern VA Trans.
Dist., Program A,
6.00%, 05/15/2008........................... AA 2,030,000 2,137,834
------------
11,664,704
------------
</TABLE>
70
<PAGE>
EVERGREEN
Virginia Municipal Bond Fund
Schedule of Investments(continued)
August 31, 2000
<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS - continued
Water & Sewer - 12.1%
Buena Vista, VA IDA RB, Wtr. & Swr. Fac.,
Route 60 Proj.,
6.25%, 07/15/2011............................ NR $ 390,000 $ 395,308
Chesterfield Cnty., VA Wtr. & Swr. RB, 6.375%,
11/01/2007................................... AA 500,000 527,340
Fairfax Cnty., VA Swr. RB, 5.625%,
07/15/2011................................... AA 2,605,000 2,737,386
Fairfax Cnty., VA Wtr. Auth. RB:
5.625%, 04/01/2017........................... AAA 1,640,000 1,687,052
6.125%, 04/01/2016........................... AAA 1,545,000 1,668,445
Henrico Cnty., VA Wtr. & Swr. RB, 5.70%,
05/01/2008................................... AA- 285,000 300,074
Loudoun Cnty., VA Sanitation Auth., Wtr. &
Swr. RB,
6.25%, 01/01/2010, (Insd. by FGIC)........... AAA 1,550,000 1,628,787
Virginia Beach, VA Wtr. & Swr. RB, 5.75%,
08/01/2016................................... AA 1,735,000 1,813,595
Virginia Resources Auth. Clean Wtr. RB, State
Revolving Fund:
5.50%, 10/01/2015............................ AAA 2,150,000 2,206,803
5.875%, 10/01/2014........................... AAA 1,250,000 1,334,712
6.00%, 10/01/2016............................ AAA 3,965,000 4,233,748
Virginia Resources Auth. RB, Pooled Loan Bond
Program:
Ser. A, 5.50%, 05/01/2014, (Insd. by MBIA)... AAA 575,000 593,457
Ser. A, 5.50%, 05/01/2016, (Insd. by MBIA)... AAA 1,380,000 1,406,082
------------
20,532,789
------------
Total Municipal Obligations (cost
$161,964,268)........................... 165,779,972
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
SHORT-TERM INVESTMENTS - 0.7%
MUTUAL FUND SHARES - 0.7%
Federated Municipal Obligations Fund - (cost
$1,100,000)........................................... 1,100,000 1,100,000
------------
Total Investments - (cost $163,064,268) - 98.7%.................... 166,879,972
Other Assets and Liabilities - 1.3%................................ 2,220,984
------------
Net Assets - 100.0%................................................ $169,100,956
============
</TABLE>
See Combined Notes to Schedules of Investments.
71
<PAGE>
Combined Notes to Schedules of Investments
August 31, 2000
/\ Credit ratings are unaudited and rated by Moody's Investors Service where
Standard and Poor's ratings are not available.
o The advisor of the Fund and the advisor of the Money Market Fund are each a
subsidiary of First Union.
Summary of Abbreviations:
AMBAC American Municipal Bond Assurance Corporation
CDA Community Development Authority
CDD Community Development District
COP Certificate of Participation
EDA Economic Development Authority
EDRB Economic Development Revenue Bond
ETM Escrowed to Maturity
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Authority
FNMA Federal National Mortgage Association
FSA Financial Security Assurance Incorporated
GNMA Government National Mortgage Association
GO General Obligation
HFA Housing Finance Authority
IBC Insured Bond Certification
IDA Industrial Development Authority
IDRB Industrial Development Revenue Bond
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance Corporation
MHRB Multifamily Housing Revenue Bond
PCRB Pollution Control Revenue Bond
RB Revenue Bond
RHA Residential Housing Association
SFHRB Single Family Housing Revenue Bond
The following table shows for each Fund the percent of net assets invested by
geographic location as of August 31, 2000:
<TABLE>
<CAPTION>
North South
Florida High Florida Georgia Maryland Carolina Carolina Virginia
Income Fund Fund Fund Fund Fund Fund Fund
------------ ------- ------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Arizona................. 1.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
California.............. 2.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Connecticut............. 0.0% 0.3% 0.0% 0.0% 0.0% 0.0% 0.0%
District of Columbia.... 0.0% 0.0% 0.0% 0.7% 0.0% 0.0% 1.0%
Florida................. 85.9% 96.8% 0.0% 0.0% 0.0% 0.0% 0.0%
Georgia................. 1.9% 0.0% 94.7% 1.0% 0.0% 1.5% 0.5%
Indiana................. 1.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Maine................... 0.4% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Maryland................ 0.0% 0.0% 0.9% 87.5% 0.0% 1.2% 0.9%
Nevada.................. 1.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
New Jersey.............. 0.0% 0.0% 0.0% 2.1% 0.0% 0.0% 0.0%
North Carolina.......... 0.0% 0.0% 0.0% 0.0% 90.7% 0.0% 0.0%
Pennsylvania............ 0.0% 0.0% 0.0% 0.0% 1.9% 0.0% 0.0%
Puerto Rico............. 0.6% 0.0% 0.0% 0.0% 2.5% 5.3% 0.8%
South Carolina.......... 1.7% 0.0% 0.0% 0.0% 0.0% 84.4% 0.0%
Texas................... 0.0% 1.0% 0.0% 0.0% 1.2% 0.0% 0.0%
U.S. Virgin Islands..... 0.0% 1.8% 3.4% 2.7% 1.8% 4.5% 2.4%
Virginia................ 0.7% 0.0% 0.0% 1.3% 0.0% 1.9% 93.6%
West Virginia........... 0.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Other Investments....... 1.5% 0.1% 1.0% 4.7% 1.9% 1.2% 0.8%
------ ------ ------ ------ ------ ------ ------
Total.................. 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
====== ====== ====== ====== ====== ====== ======
</TABLE>
See Combined Notes to Financial Statements.
72
<PAGE>
EVERGREEN
Southern State Municipal Bond Funds
Statements of Assets and Liabilities
August 31, 2000
<TABLE>
<CAPTION>
North South
Florida High Florida Georgia Maryland Carolina Carolina Virginia
Income Fund Fund Fund Fund Fund Fund Fund
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets
Identified cost of
securities............ $400,836,890 $512,057,539 $81,714,856 $43,365,254 $267,310,103 $58,736,577 $163,064,268
Net unrealized gains or
losses on securities.. (6,310,417) 11,979,648 2,114,043 531,934 5,643,746 1,415,268 3,815,704
------------------------------------------------------------------------------------------------------------------------
Market value of
securities............ 394,526,473 524,037,187 83,828,899 43,897,188 272,953,849 60,151,845 166,879,972
Cash................... 432 811 0 892 879 920 350
Receivable for
securities sold....... 0 0 0 0 0 0 246,015
Receivable for Fund
shares sold........... 1,993,466 75,283 4,752 0 91,075 26,787 169,388
Interest receivable.... 8,651,405 9,925,512 1,163,950 638,054 4,087,036 837,890 2,484,305
Receivable from
investment advisor.... 25,772 117,107 9,496 4,663 63,224 0 0
Deferred organization
expenses.............. 3,801 0 0 0 0 0 0
Prepaid expenses and
other assets.......... 40,504 42,539 4,813 4,327 3,773 16,305 8,559
------------------------------------------------------------------------------------------------------------------------
Total assets........... 405,241,853 534,198,439 85,011,910 44,545,124 277,199,836 61,033,747 169,788,589
------------------------------------------------------------------------------------------------------------------------
Liabilities
Distributions payable.. 1,283,619 2,011,978 314,165 101,985 1,017,321 229,523 511,669
Payable for securities
purchased............. 697,277 0 1,000,000 857,712 0 0 118,287
Payable for Fund shares
redeemed.............. 0 671,033 151,140 52,647 251,572 0 0
Advisory fee payable... 0 0 0 0 0 697 23,436
Distribution Plan
expenses payable...... 4,822 0 398 242 1,144 139 721
Due to other related
parties............... 1,096 1,454 228 119 753 166 461
Accrued expenses and
other liabilities..... 63,470 81,018 7,183 3,456 20,604 8,754 33,059
------------------------------------------------------------------------------------------------------------------------
Total liabilities...... 2,050,284 2,765,483 1,473,114 1,016,161 1,291,394 239,279 687,633
------------------------------------------------------------------------------------------------------------------------
Net assets.............. $403,191,569 $531,432,956 $83,538,796 $43,528,963 $275,908,442 $60,794,468 $169,100,956
------------------------------------------------------------------------------------------------------------------------
Net assets represented
by
Paid-in capital........ $432,223,132 $545,332,705 $83,566,381 $43,964,103 $280,252,704 $60,274,511 $168,105,389
Undistributed
(overdistributed) net
investment income..... (10,842) (31,106) (15,213) 519 (67,725) (6,304) (42,532)
Accumulated net
realized losses on
securities............ (22,710,304) (25,848,291) (2,126,415) (967,593) (9,920,283) (889,007) (2,777,605)
Net unrealized gains or
losses on securities.. (6,310,417) 11,979,648 2,114,043 531,934 5,643,746 1,415,268 3,815,704
------------------------------------------------------------------------------------------------------------------------
Total net assets........ $403,191,569 $531,432,956 $83,538,796 $43,528,963 $275,908,442 $60,794,468 $169,100,956
------------------------------------------------------------------------------------------------------------------------
Net assets consists of
Class A................ $212,409,665 $114,158,527 $ 7,054,574 $21,418,966 $ 22,859,493 $ 1,936,882 $ 45,759,243
Class B................ 115,352,288 46,522,095 12,795,550 3,489,401 35,847,110 4,626,713 15,119,456
Class C................ 9,309,560 6,593,662 0 55,792 0 0 0
Class Y................ 66,120,056 364,158,672 63,688,672 18,564,804 217,201,839 54,230,873 108,222,257
------------------------------------------------------------------------------------------------------------------------
Total net assets........ $403,191,569 $531,432,956 $83,538,796 $43,528,963 $275,908,442 $60,794,468 $169,100,956
------------------------------------------------------------------------------------------------------------------------
Shares outstanding
Class A................ 20,735,436 12,348,706 723,656 2,025,864 2,286,879 197,921 4,597,794
Class B................ 11,260,797 5,032,385 1,312,563 330,034 3,586,225 472,803 1,519,168
Class C................ 908,833 713,255 0 5,277 0 0 0
Class Y................ 6,454,712 39,391,521 6,533,108 1,755,905 21,729,313 5,541,995 10,873,749
------------------------------------------------------------------------------------------------------------------------
Net asset value per
share
Class A................ $ 10.24 $ 9.24 $ 9.75 $ 10.57 $ 10.00 $ 9.79 $ 9.95
------------------------------------------------------------------------------------------------------------------------
Class A--Offering price
(based on sales charge
of 4.75%)............. $ 10.75 $ 9.70 $ 10.24 $ 11.10 $ 10.50 $ 10.28 $ 10.45
------------------------------------------------------------------------------------------------------------------------
Class B................ $ 10.24 $ 9.24 $ 9.75 $ 10.57 $ 10.00 $ 9.79 $ 9.95
------------------------------------------------------------------------------------------------------------------------
Class C................ $ 10.24 $ 9.24 -- $ 10.57 -- -- --
------------------------------------------------------------------------------------------------------------------------
Class Y................ $ 10.24 $ 9.24 $ 9.75 $ 10.57 $ 10.00 $ 9.79 $ 9.95
------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
73
<PAGE>
EVERGREEN
Southern State Municipal Bonds Funds
Statements of Operations
Year Ended August 31, 2000
<TABLE>
<CAPTION>
Florida North South
High Income Florida Georgia Maryland Carolina Carolina Virginia
Fund Fund Fund Fund Fund Fund Fund
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income
Interest............... $27,472,995 $30,429,645 $4,889,526 $2,228,008 $16,013,721 $3,402,796 $9,559,283
----------------------------------------------------------------------------------------------------------------
Expenses
Advisory fee........... 2,284,483 2,480,954 381,727 179,547 1,278,151 274,073 765,303
Distribution Plan
expenses.............. 1,841,225 892,141 144,485 88,249 445,624 54,203 265,875
Administrative services
fees.................. 298,197 398,681 61,739 29,815 206,470 43,959 124,137
Transfer agent fee..... 238,682 172,610 25,081 37,915 62,473 8,210 79,117
Trustees' fees and
expenses.............. 8,309 12,515 1,704 800 5,718 1,220 3,409
Printing and postage
expenses.............. 30,637 57,901 8,822 4,012 24,466 4,020 19,094
Custodian fee.......... 127,411 162,701 26,371 12,428 84,196 16,725 53,033
Registration and filing
fees.................. 30,307 32,234 24,557 8,645 28,216 15,985 33,652
Professional fees...... 18,422 19,964 17,034 17,107 17,569 16,614 17,461
Organization expenses.. 3,554 0 0 0 0 0 0
Interest expense....... 9,232 2,886 0 0 0 0 0
Other.................. 7,993 19,086 15,161 501 24,951 1,833 18,033
----------------------------------------------------------------------------------------------------------------
Total expenses......... 4,898,452 4,251,673 706,681 379,019 2,177,834 436,842 1,379,114
Less: Fee waivers...... (474,438) (1,744,043) (217,579) (63,294) (826,400) (52,774) (280,908)
Expense reductions... (17,499) (21,239) (3,136) (2,385) (11,138) (2,319) (6,746)
----------------------------------------------------------------------------------------------------------------
Net expenses........... 4,406,515 2,486,391 485,966 313,340 1,340,296 381,749 1,091,460
----------------------------------------------------------------------------------------------------------------
Net investment income.. 23,066,480 27,943,254 4,403,560 1,914,668 14,673,425 3,021,047 8,467,823
----------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gains or
losses on securities
Net realized losses on
securities............ (20,983,164) (23,948,550) (1,630,210) (809,870) (9,920,284) (885,973) (2,775,573)
----------------------------------------------------------------------------------------------------------------
Net change in
unrealized gains or
losses on securities.. 2,013,883 17,204,664 1,229,824 804,345 5,567,031 925,515 3,228,891
----------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gains or
losses on securities.. (18,969,281) (6,743,886) (400,386) (5,525) (4,353,253) 39,542 453,318
----------------------------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............ $ 4,097,199 $21,199,368 $4,003,174 $1,909,143 $10,320,172 $3,060,589 $8,921,141
----------------------------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
74
<PAGE>
EVERGREEN
Southern State Municipal Bond Funds
Statements of Changes in Net Assets
Year Ended August 31, 2000
<TABLE>
<CAPTION>
North South
Florida High Florida Georgia Maryland Carolina Carolina Virginia
Income Fund Fund Fund Fund Fund Fund Fund
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Operations
Net investment income.. $ 23,066,480 $ 27,943,254 $ 4,403,560 $ 1,914,668 $ 14,673,425 $ 3,021,047 $ 8,467,823
Net realized losses on
securities............ (20,983,164) (23,948,550) (1,630,210) (809,870) (9,920,284) (885,973) (2,775,573)
Net change in
unrealized gains or
losses on securities.. 2,013,883 17,204,664 1,229,824 804,345 5,567,031 925,515 3,228,891
------------------------------------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............ 4,097,199 21,199,368 4,003,174 1,909,143 10,320,172 3,060,589 8,921,141
------------------------------------------------------------------------------------------------------------------------
Distributions to
shareholders from
Net investment income
Class A................ (13,273,443) (6,205,750) (267,744) (997,892) (1,058,936) (116,159) (2,288,555)
Class B................ (5,970,107) (2,145,493) (573,365) (139,915) (1,698,501) (195,516) (615,867)
Class C................ (355,216) (320,325) 0 (1,521) 0 0 0
Class Y................ (3,537,601) (19,343,906) (3,581,143) (778,601) (11,962,628) (2,721,571) (5,608,648)
Net realized gains
Class A................ 0 (416,062) 0 0 (112,383) (17,190) (92,883)
Class B................ 0 (180,345) 0 0 (265,691) (37,782) (29,668)
Class C................ 0 (29,725) 0 0 0 0 0
Class Y................ 0 (1,264,384) 0 0 (1,441,627) (411,495) (221,231)
------------------------------------------------------------------------------------------------------------------------
Total distributions to
shareholders.......... (23,136,367) (29,905,990) (4,422,252) (1,917,929) (16,539,766) (3,499,713) (8,856,852)
------------------------------------------------------------------------------------------------------------------------
Capital share
transactions
Proceeds from shares
sold.................. 117,805,737 108,857,480 24,904,559 11,442,722 45,657,631 16,019,052 26,365,147
Net asset value of
shares issued in
reinvestment of
distributions......... 8,342,300 5,375,876 559,741 871,869 3,844,523 693,026 2,354,776
Payment for shares
redeemed.............. (164,165,983) (187,563,200) (32,099,913) (8,549,897) (78,881,678) (24,509,284) (41,147,970)
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... (38,017,946) (73,329,844) (6,635,613) 3,764,694 (29,379,524) (7,797,206) (12,428,047)
------------------------------------------------------------------------------------------------------------------------
Total increase
(decrease)
in net assets........ (57,057,114) (82,036,466) (7,054,691) 3,755,908 (35,599,118) (8,236,330) (12,363,758)
Net assets
Beginning of period.... 460,248,683 613,469,422 90,593,487 39,773,055 311,507,560 69,030,798 181,464,714
------------------------------------------------------------------------------------------------------------------------
End of period.......... $403,191,569 $531,432,956 $83,538,796 $43,528,963 $275,908,442 $60,794,468 $169,100,956
------------------------------------------------------------------------------------------------------------------------
Undistributed
(overdistributed) net
investment income...... $ (10,842) $ (31,106) $ (15,213) $ 519 $ (67,725) $ (6,304) $ (42,532)
------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
75
<PAGE>
EVERGREEN
Southern State Municipal Bond Funds
Statements of Changes in Net Assets
Year Ended August 31, 1999
<TABLE>
<CAPTION>
Florida High North South
Income Florida Georgia Maryland Carolina Carolina Virginia
Fund Fund Fund Fund Fund Fund Fund
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Operations
Net investment income.. $ 22,162,871 $ 30,331,780 $ 4,325,280 $ 1,526,494 $ 15,300,320 $ 3,288,326 $ 8,504,486
Net realized gains or
losses on securities.. (1,454,705) 4,098,226 (342,891) (28,872) 2,778,803 485,621 561,384
Net change in
unrealized gains or
losses on securities.. (22,959,831) (40,892,322) (4,556,607) (1,714,219) (20,720,906) (3,989,123) (8,663,058)
-----------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) in net
assets resulting from
operations........... (2,251,665) (6,462,316) (574,218) (216,597) (2,641,783) (215,176) 402,812
-----------------------------------------------------------------------------------------------------------------------------
Distributions to
shareholders from
Net investment income
Class A............... (14,558,947) (7,418,545) (193,687) (1,060,735) (803,944) (93,636) (2,486,425)
Class B............... (5,192,345) (2,468,347) (541,679) (83,056) (1,937,764) (181,807) (477,398)
Class C............... (170,088) (365,115) 0 (479) 0 0 0
Class Y............... (2,239,772) (20,079,560) (3,589,179) (382,791) (12,558,183) (3,011,122) (5,539,677)
Net realized gains
Class A............... (74,973) (3,780,397) (14,381) (193,505) (91,582) (18,366) (389,919)
Class B............... (29,464) (1,534,947) (53,890) (13,002) (267,867) (41,464) (72,121)
Class C............... (462) (218,806) 0 0 0 0 0
Class Y............... (9,770) (9,607,708) (281,334) (40,003) (1,390,200) (621,078) (807,303)
-----------------------------------------------------------------------------------------------------------------------------
Total distributions to
shareholders......... (22,275,821) (45,473,425) (4,674,150) (1,773,571) (17,049,540) (3,967,473) (9,772,843)
-----------------------------------------------------------------------------------------------------------------------------
Capital share
transactions
Proceeds from shares
sold.................. 163,835,903 111,607,259 22,972,969 16,923,916 46,838,306 12,457,133 48,705,756
Net asset value of
shares issued in
reinvestment of
distributions......... 10,168,812 13,431,089 893,299 1,076,205 3,643,355 665,466 3,294,738
Payment for shares
redeemed.............. (101,866,559) (117,840,327) (12,144,895) (7,210,171) (40,601,876) (12,497,770) (30,328,911)
-----------------------------------------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
capital share
transactions......... 72,138,156 7,198,021 11,721,373 10,789,950 9,879,785 624,829 21,671,583
-----------------------------------------------------------------------------------------------------------------------------
Total increase
(decrease) in net
assets.............. 47,610,670 (44,737,720) 6,473,005 8,799,782 (9,811,538) (3,557,820) 12,301,552
Net assets
Beginning of period.... 412,638,013 658,207,142 84,120,482 30,973,273 321,319,098 72,588,618 169,163,162
-----------------------------------------------------------------------------------------------------------------------------
End of period.......... $ 460,248,683 $ 613,469,422 $ 90,593,487 $39,773,055 $311,507,560 $ 69,030,798 $181,464,714
-----------------------------------------------------------------------------------------------------------------------------
Undistributed net
investment income..... $ 59,045 $ 61,209 $ 1,786 $ 3,780 $ 699 $ 7,458 $ 6,935
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
76
<PAGE>
Combined Notes to Financial Statements(
1. ORGANIZATION
The Evergreen Southern State Municipal Bond Funds consist of Evergreen Florida
High Income Municipal Bond Fund ("Florida High Income Fund"), Evergreen Florida
Municipal Bond Fund ("Florida Fund"), Evergreen Georgia Municipal Bond Fund
("Georgia Fund"), Evergreen Maryland Municipal Bond Fund ("Maryland Fund"), Ev-
ergreen North Carolina Municipal Bond Fund ("North Carolina Fund"), Evergreen
South Carolina Municipal Bond Fund ("South Carolina Fund") and Evergreen Vir-
ginia Municipal Bond Fund ("Virginia Fund"), (collectively, the "Funds"). Each
Fund, except for Florida High Income Fund which is diversified, is a non-diver-
sified series of Evergreen Municipal Trust (the "Trust"), a Delaware business
trust organized on September 18, 1997. The Trust is an open-end management in-
vestment company registered under the Investment Company Act of 1940, as
amended (the "1940 Act").
The Florida High Income Fund, Florida Fund and Maryland Fund offer Class A,
Class B, Class C and Class Y shares. The Georgia Fund, North Carolina Fund,
South Carolina Fund and Virginia Fund offer Class A, Class B and Class Y
shares. Class A shares are sold with a front-end sales charge. Class B and
Class C shares are sold without a front-end sales charge, but pay a higher on-
going distribution fee than Class A. Class B and Class C shares are sold sub-
ject to a contingent deferred sales charge that is payable upon redemption and
decreases depending on how long the shares have been held. Class Y shares are
sold at net asset value and are not subject to contingent deferred sales
charges or distribution fees.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently fol-
lowed by the Funds in the preparation of their financial statements. The poli-
cies are in conformity with generally accepted accounting principles, which re-
quire management to make estimates and assumptions that affect amounts reported
herein. Actual results could differ from these estimates.
A. Valuation of Securities
An independent pricing service values each Fund's municipal bonds at fair value
using a variety of factors which may include yield, liquidity, interest rate
risk, credit quality, coupon, maturity and type of issue. Securities for which
valuations are not available from an independent pricing service may be valued
by brokers which use prices provided by market makers or estimates of market
value obtained from yield data relating to investments or securities with simi-
lar characteristics. Otherwise, securities for which valuations are not avail-
able (including restricted securities) are valued at fair value as determined
in good faith according to procedures established by the Board of Trustees.
Mutual fund shares held in a Fund are valued at the net asset value of each mu-
tual fund.
Short-term investments with remaining maturities of 60 days or less are carried
at amortized cost, which approximates market value.
B. When-issued and Delayed Delivery Transactions
The Funds record when-issued or delayed delivery transactions on the trade date
and will segregate with the custodian qualifying assets having a value suffi-
cient to make payment for the securities purchased. Securities purchased on a
when-issued or delayed delivery basis are marked-to-market daily and the Fund
begins earning interest on the settlement date. Losses may arise due to changes
in the market value of the underlying securities or if the counterparty does
not perform under the contract.
C. Security Transactions and Investment Income
Securities transactions are accounted for no later than one business day after
the trade date. Realized gains and losses are computed on the identified cost
basis. Interest income is recorded on the accrual basis and includes accretion
of discounts and amortization of premiums.
77
<PAGE>
Combined Notes to Financial Statements(continued)
D. Federal Taxes
The Funds intend to comply with the provisions of the Internal Revenue Code ap-
plicable to regulated investment companies and to distribute all of their net
investment company taxable income, net tax-exempt income and net capital gains,
if any, to their shareholders. Accordingly, no provision for federal income or
excise tax is required.
E. Distributions
Distributions from net investment income for the Funds are declared daily and
paid monthly. Distributions from net realized capital gains, if any, are paid
at least annually. To the extent that realized capital gains can be offset by
capital loss carryovers, it is each Fund's policy not to distribute such gains.
Distributions to shareholders are recorded at the close of business on the ex-
dividend date.
Income and capital gains distributions to shareholders are determined in accor-
dance with income tax regulations, which may differ from generally accepted ac-
counting principles. Reclassifications have been made to the Funds' components
of net assets to reflect income and gains available for distribution (or avail-
able capital loss carryovers, as applicable) under income tax regulations. The
primary permanent differences causing such reclassifications are due to differ-
ing treatment of market discount on securities.
F. Class Allocations
Income, expenses (other than class specific expenses) and realized and
unrealized gains and losses are prorated among the classes based on the rela-
tive net assets of each class. Currently, class specific expenses are limited
to expenses incurred under the Distribution Plans for each class.
G. Organization Expenses
Organization expenses for Florida High Income Fund are amortized to operations
over a five-year period on a straight-line basis. In the event any of the ini-
tial shares of the Funds are redeemed by any holder during the five-year amor-
tization period, redemption proceeds will be reduced by any unamortized organi-
zation expenses in the same proportion as the number of initial shares being
redeemed bears to the number of initial shares outstanding at the time of the
redemption.
3. INVESTMENT ADVISORY AGREEMENT AND OTHER AFFILIATED TRANSACTIONS
First Union National Bank ("FUNB"), a subsidiary of First Union Corporation
("First Union"), serves as the investment advisor to each Fund and is paid a
management fee that is computed and paid daily at an annual rate of 0.42% of
the average daily net assets of the Florida Fund, Georgia Fund, Maryland Fund,
North Carolina Fund, South Carolina Fund and Virginia Fund. FUNB is paid at an
annual rate of 0.52% of the average daily net assets of the Florida High Income
Fund. Prior to January 3, 2000, the management fee was computed daily at an an-
nual rate of 0.50% of the average daily net assets of the Florida Fund, Georgia
Fund, Maryland Fund, North Carolina Fund, South Carolina Fund and Virginia
Fund. Prior to January 3, 2000, the management fee was computed daily at an an-
nual rate of 0.60% of the average daily net assets of the Florida High Income
Fund.
During the year ended August 31, 2000, the amount of investment advisory fees
waived by the investment advisor and the impact on each Fund's expense ratio
represented as a percentage of its average net assets were as follows:
<TABLE>
<CAPTION>
Fees % of Average
Waived Net Assets
-----------------------
<S> <C> <C>
Florida High Income Fund................ $ 474,438 0.12%
Florida Fund............................ 1,559,004 0.28%
Georgia Fund............................ 217,579 0.26%
Maryland Fund........................... 63,294 0.16%
North Carolina Fund..................... 826,400 0.29%
South Carolina Fund..................... 52,774 0.09%
Virginia Fund........................... 280,908 0.16%
</TABLE>
78
<PAGE>
Combined Notes to Financial Statements(continued)
Evergreen Investment Services ("EIS"), an indirect, wholly-owned subsidiary of
FUNB, is the administrator to the Funds. As administrator, EIS provides the
Funds with facilities, equipment and personnel. Prior to May 1, 2000, The BISYS
Group, Inc. ("BISYS") served as the sub-administrator to the Funds and provided
the officers of the Funds. Officers of the Funds and affiliated Trustees re-
ceive no compensation directly from the Funds.
For its services, the Funds pay the administrator a fee at the annual rate of
0.10% of each Fund's average daily net assets. For each Fund, the sub-adminis-
trator was paid by the administrator out of its fees until the sub- administra-
tion agreement with BISYS was terminated on April 30, 2000.
Prior to January 3, 2000, the administrator and sub-administrator for the Funds
were entitled to an annual fee based on the combined average daily net assets
of all the funds administered by EIS for which First Union or its investment
advisory subsidiaries were also the investment advisors. The administration fee
was calculated by applying percentage rates, which started at 0.05% and de-
clined to 0.01% per annum as net assets increased, to the average daily net as-
sets of each Fund. The sub-administration fee was calculated by applying per-
centage rates, which started at 0.01% and declined to 0.004% per annum as net
assets increased, to the average daily net assets of each Fund.
During the year ended August 31, 2000, the Funds paid or accrued to EIS the
following amounts for administrative and sub-administrative services:
<TABLE>
<CAPTION>
Administration Sub-administration
Fee Fee
---------------------------------
<S> <C> <C>
Florida High Income Fund...... $286,817 $11,380
Florida Fund.................. 383,669 15,012
Georgia Fund.................. 59,772 1,967
Maryland Fund................. 28,773 1,042
North Carolina Fund........... 198,793 7,677
South Carolina Fund........... 42,333 1,626
Virginia Fund................. 119,559 4,578
</TABLE>
Evergreen Service Company ("ESC"), an indirectly, wholly owned subsidiary of
FUNB, is the transfer and dividend disbursing agent for the Funds.
4. DISTRIBUTION PLANS
Evergreen Distributor, Inc. ("EDI"), a wholly owned subsidiary of BISYS, serves
as principal underwriter to the Funds.
Each Fund has adopted Distribution Plans, as allowed by Rule 12b-1 of the 1940
Act, for each class of shares, except Class Y. Distribution plans permit a Fund
to compensate its principal underwriter for costs related to selling shares of
the Fund and for various other services. These costs, which consist primarily
of commissions and service fees to broker-dealers who sell shares of the Fund,
are paid by the Fund through "Distribution Plan expenses". Under the Distribu-
tion Plans, each class incurs distribution fees at the following annual rates:
<TABLE>
<CAPTION>
Average Daily
Net Assets
-------------
<S> <C>
Class A............................................ 0.25%
Class B............................................ 1.00%
Class C............................................ 1.00%
</TABLE>
Of the above amounts, each share class may pay under its Distribution Plan a
maximum service fee of 0.25% of the average daily net assets of the class to
pay for shareholder service fees.
79
<PAGE>
Combined Notes to Financial Statements(continued)
For the year ended August 31, 2000, amounts paid or accrued to EDI pursuant to
each Fund's Class A, Class B, and Class C Distribution Plans were as follows:
<TABLE>
<CAPTION>
% of
Class A
Fees Average
Waived Net
Class A Class B Class C Class A Assets
--------------------------------------------
<S> <C> <C> <C> <C> <C>
Florida High
Income Fund.... $577,298 $1,193,047 $70,880 $ 0 0.00%
Florida Fund.... 303,974 511,719 76,448 185,039 0.16%
Georgia Fund.... 13,036 131,449 0 0 0.00%
Maryland Fund... 52,720 35,152 377 0 0.00%
North Carolina
Fund........... 52,096 393,528 0 0 0.00%
South Carolina
Fund........... 6,014 48,189 0 0 0.00%
Virginia Fund... 116,931 148,944 0 0 0.00%
</TABLE>
With respect to Class B and Class C shares, the principal underwriter may pay
distribution fees greater than the allowable annual amounts each Fund is per-
mitted to pay under the Distribution Plans.
Each of the Distribution Plans may be terminated at any time by vote of the In-
dependent Trustees or by vote of a majority of the outstanding voting shares of
the respective class.
5. CAPITAL SHARE TRANSACTIONS
The Funds have an unlimited number of shares of beneficial interest with $0.001
par value authorized. Shares of beneficial interest of the Funds are currently
divided into Class A, Class B, Class C and/or Class Y. Transactions in shares
of the Funds were as follows:
Florida High Income Fund
<TABLE>
<CAPTION>
Year Ended August 31,
-------------------------------------------------
2000 1999
------------------------ -----------------------
Shares Amount Shares Amount
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold................ 4,079,352 $ 41,990,110 6,022,065 $67,119,861
Automatic conversion of
Class B shares to Class A
shares.................... 97,041 984,493 0 0
Shares issued in
reinvestment of
distributions............. 501,619 5,125,754 634,153 7,055,563
Shares redeemed............ (9,185,129) (94,095,090) (6,206,580) (68,781,003)
------------------------------------------------------------------------------
Net increase (decrease).... (4,507,117) (45,994,733) 449,638 5,394,421
------------------------------------------------------------------------------
Class B
Shares sold................ 1,946,302 19,941,895 4,429,234 49,368,416
Shares issued in
reinvestment of
distributions............. 281,494 2,873,797 247,877 2,753,042
Automatic conversion of
Class B shares to Class A
shares.................... (97,041) (984,493) 0 0
Shares redeemed............ (3,065,410) (31,340,854) (1,659,509) (18,418,450)
------------------------------------------------------------------------------
Net increase (decrease).... (934,655) (9,509,655) 3,017,602 33,703,008
------------------------------------------------------------------------------
Class C
Shares sold................ 518,431 5,282,126 640,928 7,135,431
Shares issued in
reinvestment of
distributions............. 19,201 195,794 9,404 103,941
Shares redeemed............ (260,772) (2,680,672) (115,908) (1,287,087)
------------------------------------------------------------------------------
Net increase............... 276,860 2,797,248 534,424 5,952,285
------------------------------------------------------------------------------
Class Y
Shares sold................ 4,917,171 50,591,606 3,610,375 40,212,195
Shares issued in
reinvestment of
distributions............. 14,314 146,955 23,071 256,266
Shares redeemed............ (3,497,432) (36,049,367) (1,202,544) (13,380,019)
------------------------------------------------------------------------------
Net increase............... 1,434,053 14,689,194 2,430,902 27,088,442
------------------------------------------------------------------------------
Net increase (decrease).... $(38,017,946) $72,138,156
------------------------------------------------------------------------------
</TABLE>
80
<PAGE>
Combined Notes to Financial Statements(continued)
Florida Fund
<TABLE>
<CAPTION>
Year Ended August 31,
--------------------------------------------------
2000 1999
------------------------- -----------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............... 1,788,464 $ 16,346,190 2,166,801 $21,480,810
Automatic conversion of
Class B shares to Class A
shares................... 157,846 1,427,176 0 0
Shares issued in
reinvestment of
distributions............ 288,497 2,648,208 526,975 5,201,492
Shares redeemed........... (4,526,588) (41,312,148) (4,237,683) (41,508,980)
-------------------------------------------------------------------------------
Net decrease.............. (2,291,781) (20,890,574) (1,543,907) (14,826,678)
-------------------------------------------------------------------------------
Class B
Shares sold............... 372,669 3,391,959 1,015,953 10,084,761
Shares issued in
reinvestment of
distributions............ 121,075 1,104,447 208,178 2,053,007
Automatic conversion of
Class B shares to Class A
shares................... (157,846) (1,427,176) 0 0
Shares redeemed........... (1,687,371) (15,406,268) (1,357,332) (13,327,563)
-------------------------------------------------------------------------------
Net decrease.............. (1,351,473) (12,337,038) (133,201) (1,189,795)
-------------------------------------------------------------------------------
Class C
Shares sold............... 74,605 684,431 171,468 1,716,585
Shares issued in
reinvestment of
distributions............ 13,122 119,919 29,587 291,797
Shares redeemed........... (347,432) (3,154,193) (111,271) (1,080,242)
-------------------------------------------------------------------------------
Net increase (decrease)... (259,705) (2,349,843) 89,784 928,140
-------------------------------------------------------------------------------
Class Y
Shares sold............... 9,711,363 88,434,900 7,963,457 78,325,103
Shares issued in
reinvestment of
distributions............ 163,294 1,503,302 594,102 5,884,793
Shares redeemed........... (13,994,955) (127,690,591) (6,315,912) (61,923,542)
-------------------------------------------------------------------------------
Net increase (decrease)... (4,120,298) (37,752,389) 2,241,647 22,286,354
-------------------------------------------------------------------------------
Net increase (decrease)... $(73,329,844) $ 7,198,021
-------------------------------------------------------------------------------
Georgia Fund
<CAPTION>
Year Ended August 31,
--------------------------------------------------
2000 1999
------------------------- -----------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............... 440,782 $ 4,240,450 305,966 $ 3,123,180
Automatic conversion of
Class B shares to Class A
shares................... 53,839 509,415 0 0
Shares issued in
reinvestment of
distributions............ 16,348 156,395 13,683 139,514
Shares redeemed........... (232,860) (2,218,116) (253,867) (2,575,284)
-------------------------------------------------------------------------------
Net increase.............. 278,109 2,688,144 65,782 687,410
-------------------------------------------------------------------------------
Class B
Shares sold............... 212,897 2,035,089 381,699 3,892,607
Shares issued in
reinvestment of
distributions............ 39,369 376,584 42,933 438,417
Automatic conversion of
Class B shares to Class A
shares................... (53,839) (509,415) 0 0
Shares redeemed........... (342,109) (3,272,338) (181,382) (1,848,612)
-------------------------------------------------------------------------------
Net increase (decrease)... (143,682) (1,370,080) 243,250 2,482,412
-------------------------------------------------------------------------------
Class Y
Shares sold............... 1,953,488 18,629,020 1,554,435 15,957,182
Shares issued in
reinvestment of
distributions............ 2,793 26,762 30,615 315,368
Shares redeemed........... (2,783,285) (26,609,459) (757,013) (7,720,999)
-------------------------------------------------------------------------------
Net increase (decrease)... (827,004) (7,953,677) 828,037 8,551,551
-------------------------------------------------------------------------------
Net increase (decrease)... $ (6,635,613) $11,721,373
-------------------------------------------------------------------------------
</TABLE>
81
<PAGE>
Combined Notes to Financial Statements(continued)
Maryland Fund
<TABLE>
<CAPTION>
Year Ended August 31,
--------------------------------------------
2000 1999
--------------------- ---------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold..................... 207,360 $ 2,158,004 293,892 $ 3,264,960
Automatic conversion of Class B
shares to Class A shares....... 1,610 16,546 0 0
Shares issued in reinvestment of
distributions.................. 71,988 747,521 87,231 962,253
Shares redeemed................. (439,109) (4,549,281) (414,785) (4,586,001)
-------------------------------------------------------------------------------
Net decrease.................... (158,151) (1,627,210) (33,662) (358,788)
-------------------------------------------------------------------------------
Class B
Shares sold..................... 85,865 894,838 264,441 2,922,980
Shares issued in reinvestment of
distributions.................. 10,420 108,150 6,593 72,249
Automatic conversion of Class B
shares to Class A shares....... (1,610) (16,546) 0 0
Shares redeemed................. (89,643) (930,837) (34,744) (376,172)
-------------------------------------------------------------------------------
Net increase.................... 5,032 $ 55,605 236,290 $ 2,619,057
-------------------------------------------------------------------------------
<CAPTION>
December 23, 1998
(Commencement of
Year Ended Class Operations) to
August 31, 2000 August 31, 1999
--------------------- ---------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class C
Shares sold..................... 2,325 $ 24,012 3,217 $ 35,602
Shares issued in reinvestment of
distributions.................. 147 1,523 43 469
Shares redeemed................. 0 0 (455) (4,992)
-------------------------------------------------------------------------------
Net increase.................... 2,472 $ 25,535 2,805 $ 31,079
-------------------------------------------------------------------------------
<CAPTION>
Year Ended August 31,
--------------------------------------------
2000 1999
--------------------- ---------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class Y
Shares sold..................... 804,621 $ 8,365,868 978,698 $10,700,374
Shares issued in reinvestment of
distributions.................. 1,413 14,675 3,715 41,234
Shares redeemed................. (296,392) (3,069,779) (204,492) (2,243,006)
-------------------------------------------------------------------------------
Net increase.................... 509,642 5,310,764 777,921 8,498,602
-------------------------------------------------------------------------------
Net increase.................... $ 3,764,694 $10,789,950
-------------------------------------------------------------------------------
</TABLE>
North Carolina Fund
<TABLE>
<CAPTION>
Year Ended August 31,
--------------------------------------------------
2000 1999
------------------------ ------------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............... 1,193,727 $ 11,777,399 548,243 $ 5,825,507
Automatic conversion of
Class B shares to Class A
shares................... 299,230 2,912,891 0 0
Shares issued in
reinvestment of
distributions............ 77,834 766,620 57,810 615,583
Shares redeemed........... (1,050,028) (10,326,518) (294,568) (3,140,795)
-------------------------------------------------------------------------------
Net increase.............. 520,763 5,130,392 311,485 3,300,295
-------------------------------------------------------------------------------
Class B
Shares sold............... 161,741 1,581,610 424,453 4,543,408
Shares issued in
reinvestment of
distributions............ 138,780 1,368,508 153,483 1,635,617
Automatic conversion of
Class B shares to Class A
shares................... (299,230) (2,912,891) 0 0
Shares redeemed........... (934,853) (9,209,263) (608,158) (6,461,589)
-------------------------------------------------------------------------------
Net decrease.............. (933,562) (9,172,036) (30,222) (282,564)
-------------------------------------------------------------------------------
Class Y
Shares sold............... 3,288,337 32,298,622 3,440,359 36,469,391
Shares issued in
reinvestment of
distributions............ 172,522 1,709,395 129,785 1,392,155
Shares redeemed........... (6,025,757) (59,345,897) (2,914,981) (30,999,492)
-------------------------------------------------------------------------------
Net increase (decrease)... (2,564,898) (25,337,880) 655,163 6,862,054
-------------------------------------------------------------------------------
Net increase (decrease)... $(29,379,524) $ 9,879,785
-------------------------------------------------------------------------------
</TABLE>
82
<PAGE>
Combined Notes to Financial Statements(continued)
South Carolina Fund
<TABLE>
<CAPTION>
Year Ended August 31,
-------------------------------------------------
2000 1999
------------------------ -----------------------
Shares Amount Shares Amount
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold................ 65,260 $ 622,930 106,193 $ 1,089,296
Automatic conversion of
Class B shares to Class A
shares.................... 22,504 213,088 0 0
Shares issued in
reinvestment of
distributions............. 8,051 77,329 7,645 78,365
Shares redeemed............ (134,115) (1,285,949) (44,615) (454,257)
------------------------------------------------------------------------------
Net increase (decrease).... (38,300) (372,602) 69,223 713,404
------------------------------------------------------------------------------
Class B
Shares sold................ 71,353 678,957 177,649 1,816,333
Shares issued in
reinvestment of
distributions............. 17,617 169,067 15,297 156,799
Automatic conversion of
Class B shares to Class A
shares.................... (22,504) (213,088) 0 0
Shares redeemed............ (141,803) (1,356,660) (79,709) (816,909)
------------------------------------------------------------------------------
Net increase (decrease).... (75,337) (721,724) 113,237 1,156,223
------------------------------------------------------------------------------
Class Y
Shares sold................ 1,544,300 14,717,165 934,454 9,551,504
Shares issued in
reinvestment of
distributions............. 46,305 446,630 41,643 430,302
Shares redeemed............ (2,281,805) (21,866,675) (1,091,620) (11,226,604)
------------------------------------------------------------------------------
Net decrease............... (691,200) (6,702,880) (115,523) (1,244,798)
------------------------------------------------------------------------------
Net increase (decrease).... $ (7,797,206) $ 624,829
------------------------------------------------------------------------------
Virginia Fund
<CAPTION>
Year Ended August 31,
-------------------------------------------------
2000 1999
------------------------ -----------------------
Shares Amount Shares Amount
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold................ 777,058 $ 7,550,546 856,960 $ 8,865,581
Automatic conversion of
Class B shares to Class A
shares.................... 39,685 381,563 0 0
Shares issued in
reinvestment of
distributions............. 164,488 1,601,099 199,536 2,060,558
Shares redeemed............ (1,453,803) (14,142,074) (1,178,483) (12,163,094)
------------------------------------------------------------------------------
Net decrease............... (472,572) (4,608,866) (121,987) (1,236,955)
------------------------------------------------------------------------------
Class B
Shares sold................ 306,035 2,970,801 836,344 8,632,698
Shares issued in
reinvestment of
distributions............. 48,025 467,464 41,468 426,711
Automatic conversion of
Class B shares to Class A
shares.................... (39,685) (381,563) 0 0
Shares redeemed............ (346,607) (3,365,745) (180,842) (1,855,222)
------------------------------------------------------------------------------
Net increase (decrease).... (32,232) (309,043) 696,970 7,204,187
------------------------------------------------------------------------------
Class Y
Shares sold................ 1,626,311 15,843,800 3,026,297 31,207,477
Shares issued in
reinvestment of
distributions............. 29,292 286,213 77,779 807,469
Shares redeemed............ (2,437,200) (23,640,151) (1,578,685) (16,310,595)
------------------------------------------------------------------------------
Net increase (decrease).... (781,597) (7,510,138) 1,525,391 15,704,351
------------------------------------------------------------------------------
Net increase (decrease).... $(12,428,047) $21,671,583
------------------------------------------------------------------------------
</TABLE>
6. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of investment securities (excluding
short-term securities) were as follows for the year ended August 31, 2000:
<TABLE>
<CAPTION>
Cost of Purchases Proceeds from Sales
-------------------------------------
<S> <C> <C>
Florida High Income Fund.. $156,745,055 $193,188,296
Florida Fund.............. 216,186,168 315,762,028
Georgia Fund.............. 33,803,082 35,532,559
Maryland Fund............. 19,989,847 17,305,666
North Carolina Fund....... 57,972,874 78,216,196
South Carolina Fund....... 32,289,210 38,473,606
Virginia Fund............. 86,324,581 92,528,273
</TABLE>
83
<PAGE>
Combined Notes to Financial Statements(continued)
On August 31, 2000, the composition of unrealized appreciation and depreciation
on securities based on the aggregate cost of securities for federal income tax
purposes were as follows:
<TABLE>
<CAPTION>
Net
Gross Gross Unrealized
Unrealized Unrealized Appreciation/
Tax Cost Appreciation Depreciation Depreciation
-----------------------------------------------------
<S> <C> <C> <C> <C>
Florida High
Income Fund.... $400,849,452 $4,756,102 $(11,079,081) $(6,322,979)
Florida Fund.... 512,057,539 15,161,253 (3,181,605) 11,979,648
Georgia Fund.... 81,714,856 3,125,026 (1,010,983) 2,114,043
Maryland Fund... 43,368,470 993,310 (464,592) 528,718
North Carolina
Fund........... 267,310,103 8,329,903 (2,686,157) 5,643,746
South Carolina
Fund........... 58,736,577 2,003,963 (588,695) 1,415,268
Virginia Fund... 163,097,178 5,166,925 (1,384,131) 3,782,794
</TABLE>
As of August 31, 2000, the Funds had capital loss carryovers for federal income
tax purposes as follows:
<TABLE>
<CAPTION>
Expiration
-------------------------------
2001 2004 2008
<S> <C> <C> <C>
Florida High
Income Fund........................ $ 0 $ 0 $4,365,480
Florida Fund........................ 810,279 1,089,463 7,387,972
Georgia Fund........................ 0 0 863,799
Maryland Fund....................... 0 0 215,659
North Carolina
Fund............................... 0 0 3,343,827
South Carolina
Fund............................... 0 0 5,619
Virginia Fund....................... 0 0 157,651
</TABLE>
The Florida Fund's capital loss carryovers expiring in 2001 and 2004 were cre-
ated as a result of the January 26, 1998 acquisition of substantially all the
assets and assumption of certain liabilities of Evergreen Florida Tax Free Fund
in exchange for Florida Fund shares. In accordance with income tax regulations,
certain Florida Fund gains may not be used to offset this capital loss carryo-
ver.
In addition to the capital loss carryovers, capital losses incurred after Octo-
ber 31 within a Fund's fiscal year are deemed to arise on the first business
day of the Fund's following fiscal year. For the year ended August 31, 2000,
the Funds have incurred and elected to defer post-October losses as follows:
<TABLE>
<CAPTION>
Capital
Losses
-----------
<S> <C>
Florida High Income Fund............................. $18,332,262
Florida Fund......................................... 16,560,578
Georgia Fund......................................... 1,262,616
Maryland Fund........................................ 748,718
North Carolina Fund.................................. 6,576,457
South Carolina Fund.................................. 883,388
Virginia Fund........................................ 2,587,042
</TABLE>
7. EXPENSE REDUCTIONS
Through expense offset arrangements with ESC and their custodian, a portion of
fund expenses have been reduced. The amount of expense reductions received by
each Fund and the impact of the total expense reductions on each Fund's
annualized expense ratio represented as a percentage of its average net assets
were as follows:
<TABLE>
<CAPTION>
% of
Total Average
Expense Net
Reductions Assets
------------------
<S> <C> <C>
Florida High Income Fund..................... $17,499 0.00%
Florida Fund................................. 21,239 0.00%
Georgia Fund................................. 3,136 0.00%
Maryland Fund................................ 2,385 0.00%
North Carolina Fund.......................... 11,138 0.00%
South Carolina Fund.......................... 2,319 0.00%
Virginia Fund................................ 6,746 0.00%
</TABLE>
84
<PAGE>
Combined Notes to Financial Statements(continued)
8. DEFERRED TRUSTEES' FEES
Each Independent Trustee of each Fund may defer any or all compensation related
to performance of their duties as Trustees. The Trustees' deferred balances are
allocated to deferral accounts, which are included in the accrued expenses for
the Fund. The investment performance of the deferral accounts are based on the
investment performance of certain Evergreen Funds. Any gains earned or losses
incurred in the deferral accounts are reported in the Fund's Trustees' fees and
expenses. At the election of the Trustees, the deferral account will be paid
either in one lump sum or in quarterly installments for up to ten years.
9. FINANCING AGREEMENTS
On July 27, 1999, certain Evergreen Funds and a group of banks (the "Lenders")
entered into a credit agreement. Under this agreement, the Lenders provide an
unsecured revolving credit commitment in the aggregate amount of $1.050 bil-
lion. The credit facility is allocated, under the terms of the financing agree-
ment, among the Lenders. The credit facility is accessed by the Funds for tem-
porary or emergency purposes to fund the redemption of their shares or for gen-
eral working capital purposes as permitted by each Fund's borrowing restric-
tions. Borrowings under this facility bear interest at 0.75% per annum above
the Federal Funds rate (1.50% per annum above the Federal Funds rate during the
period from and including December 1, 1999 through and including January 31,
2000). A commitment fee of 0.10% per annum is incurred on the average daily un-
used portion of the revolving credit commitment. The commitment fee is allo-
cated to all funds. For its assistance in arranging this financing agreement,
First Union Capital Markets Corp. was paid a one-time arrangement fee of
$250,000. State Street serves as paying agent for the funds and as paying agent
is entitled to a fee of $20,000 per annum which is allocated to all the funds.
On July 25, 2000, this agreement was renewed, amended and restated among cer-
tain Evergreen Funds and the Lenders. Under this renewed agreement, the Lenders
provide an unsecured revolving credit commitment in the aggregate amount of
$755 million. The credit facility is allocated, under the terms of the financ-
ing agreement, among the Lenders. The credit facility is accessed by the Funds
to temporarily finance the purchase or sale of securities for prompt delivery,
including funding redemption of their shares, as permitted by each Fund's bor-
rowing restrictions. Borrowings under this facility bear interest at 0.50% per
annum above the Federal Funds rate. A commitment fee of 0.10% per annum contin-
ues to be incurred on the average daily unused portion of the revolving credit
commitment and is allocated to all funds. For its assistance in renewing this
financing agreement, First Union Capital Markets Corp. was paid a one-time ar-
rangement fee of $150,000. State Street continues as paying agent for the funds
and receives a fee of $20,000 per annum which is allocated to all the funds.
During the year ended August 31, 2000, the following Funds had borrowings under
these agreements:
<TABLE>
<CAPTION>
Average Average
Borrowings Interest Interest
Outstanding Rate Expense
-----------------------------
<S> <C> <C> <C>
Florida High Income Fund......... $134,775 6.85% $9,232
Florida Fund..................... 44,216 6.53% 2,886
</TABLE>
10. CONCENTRATION OF RISK
Each Fund invests a substantial portion of its assets in issuers of municipal
debt securities located in a single state, therefore, it may be more affected
by economic and political developments in that state or region than would be a
comparable general tax-exempt mutual fund.
85
<PAGE>
Independent Auditors' Report
Board of Trustees and Shareholders
Evergreen Municipal Trust
We have audited the accompanying statements of assets and liabilities, includ-
ing the schedules of investments of the Evergreen Florida High Income Municipal
Bond Fund, Evergreen Florida Municipal Bond Fund, Evergreen Georgia Municipal
Bond Fund, Evergreen Maryland Municipal Bond Fund, Evergreen North Carolina Mu-
nicipal Bond Fund, Evergreen South Carolina Municipal Bond Fund and Evergreen
Virginia Municipal Bond Fund, portfolios of Evergreen Municipal Trust, as of
August 31, 2000, and the related statements of operations for the year then
ended, statements of changes in net assets for each of the years in the two-
year period then ended, and the financial highlights for each of the years or
periods in the five-year period then ended. These financial statements and fi-
nancial highlights are the responsibility of the Fund's management. Our respon-
sibility is to express an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with auditing standards generally ac-
cepted in the United States of America. Those standards require that we plan
and perform our audit to obtain reasonable assurance about whether the finan-
cial statements and financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation
of securities owned as of August 31, 2000 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reason-
able basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Ever-
green Florida High Income Municipal Bond Fund, Evergreen Florida Municipal Bond
Fund, Evergreen Georgia Municipal Bond Fund, Evergreen Maryland Municipal Bond
Fund, Evergreen North Carolina Municipal Bond Fund, Evergreen South Carolina
Municipal Bond Fund and Evergreen Virginia Municipal Bond Fund as of August 31,
2000, and the results of their operations, changes in their net assets and fi-
nancial highlights for each of the years or periods described above in confor-
mity with accounting principles generally accepted in the United States of
America.
/s/ KPMG
Boston, Massachusetts
October 6, 2000
86
<PAGE>
Additional Information (Unaudited)
FEDERAL INCOME TAX STATUS OF DISTRIBUTIONS
For the fiscal year ended August 31, 2000, the following percentages represent
the portion of dividends from net investment income which are exempt from fed-
eral income tax, other than alternative minimum tax:
<TABLE>
<S> <C>
Florida High Income Fund.................................. 99.95%
Florida Fund.............................................. 99.55%
Georgia Fund.............................................. 99.52%
Maryland Fund............................................. 99.79%
North Carolina Fund....................................... 99.51%
South Carolina Fund....................................... 99.52%
Virginia Fund............................................. 99.61%
</TABLE>
Pursuant to section 852 of the Internal Revenue Code, the Funds have designated
the following amounts as long-term capital gain distributions for the fiscal
year ended August 31, 2000:
<TABLE>
<CAPTION>
Per
Aggregate Share
-----------------
<S> <C> <C>
Florida High Income Fund...................... $ 0 $ 0
Florida Fund.................................. 1,870,421 0.030
Georgia Fund.................................. 0 0
Maryland Fund................................. 0 0
North Carolina Fund........................... 1,790,085 0.061
South Carolina Fund........................... 461,870 0.071
Virginia Fund................................. 337,532 0.019
</TABLE>
87
<PAGE>
Evergreen Funds
Money Market Funds
Florida Municipal Money Market Fund
Money Market Fund
Municipal Money Market Fund
New Jersey Municipal Money Market Fund
Pennsylvania Municipal Money Market Fund
Treasury Money Market Fund
State Municipal Bond Funds
Connecticut Municipal Bond Fund
Florida High Income Municipal Bond Fund
Florida Municipal Bond Fund
Georgia Municipal Bond Fund
Maryland Municipal Bond Fund
New Jersey Municipal Bond Fund
North Carolina Municipal Bond Fund
Pennsylvania Municipal Bond Fund
South Carolina Municipal Bond Fund
Virginia Municipal Bond Fund
National Municipal Bond Funds
High Grade Municipal Bond Fund
High Income Municipal Bond Fund
Municipal Bond Fund
Short Intermediate Municipal Fund
Short and Intermediate Bond Funds
Intermediate Term Bond Fund
Short-Duration Income Fund
Intermediate and Long Term Bond Funds
Diversified Bond Fund
High Yield Bond Fund
Quality Income Fund
Strategic Income Fund
U.S. Government Fund
Balanced Funds
Balanced Fund
Foundation Fund
Tax Strategic Foundation Fund
Growth & Income Funds
Blue Chip Fund
Equity Income Fund
Equity Index Fund
Growth and Income Fund
Small Cap Value Fund
Utility Fund
Value Fund
Domestic Growth Funds
Aggressive Growth Fund
Capital Growth Fund
Evergreen Fund
Growth Fund
Large Company Growth Fund
Masters Fund Omega Fund
Small Company Growth Fund
Special Equity Fund
Stock Selector Fund
Tax Strategic Equity Fund
Sector Funds
Health Care Fund
Technology Fund
Global & International Funds
Emerging Markets Growth Fund
Global Leaders Fund
Global Opportunities Fund
International Growth Fund
Latin America Fund
Perpetual Global Fund
Perpetual International Fund
Precious Metals Fund
Express Line
800.346.3858
Investor Services
800.343.2898
www.evergreen-funds.com
28772 543699 10/2000
[LOGO OF EVERGREEN FUNDS] --------------
PRSRT STD
200 Berkeley Street U.S. POSTAGE
Boston, MA 02116 PAID
LANCASTER, PA
PERMIT NO. 11
--------------
