<PAGE>
Semiannual Report
as of February 29, 2000
EVERGREEN SOUTHERN STATE MUNICIPAL BOND FUNDS
[LOGO OF EVERGREEN FUNDS] [LOGO OF MUTUAL
FUND SERVICE AWARD]
<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 ................................................... 4
Evergreen Georgia Municipal Bond Fund
Fund at a Glance ................................................... 6
Evergreen Maryland Municipal Bond Fund
Fund at a Glance ................................................... 8
Evergreen North Carolina Municipal Bond Fund
Fund at a Glance ................................................... 10
Evergreen South Carolina Municipal Bond Fund
Fund at a Glance ................................................... 12
Evergreen Virginia Municipal Bond Fund
Fund at a Glance ................................................... 14
Financial Highlights
Evergreen Florida High Income Municipal Bond Fund .................. 16
Evergreen Florida Municipal Bond Fund .............................. 18
Evergreen Georgia Municipal Bond Fund .............................. 20
Evergreen Maryland Municipal Bond Fund ............................. 22
Evergreen North Carolina Municipal Bond Fund ....................... 24
Evergreen South Carolina Municipal Bond Fund ....................... 26
Evergreen Virginia Municipal Bond Fund ............................. 28
Schedule of Investments
Evergreen Florida High Income Municipal Bond Fund .................. 30
Evergreen Florida Municipal Bond Fund .............................. 34
Evergreen Georgia Municipal Bond Fund .............................. 38
Evergreen Maryland Municipal Bond Fund ............................. 40
Evergreen North Carolina Municipal Bond Fund ....................... 42
Evergreen South Carolina Municipal Bond Fund ....................... 45
Evergreen Virginia Municipal Bond Fund ............................. 47
Combined Notes to Schedules of Investments ............................ 50
Statements of Assets and Liabilities .................................. 51
Statements of Operations .............................................. 52
Statements of Changes in Net Assets ................................... 53
Combined Notes to Financial Statements ................................ 55
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Evergreen Funds
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Evergreen Funds is one of the nation's fastest growing investment companies with
approximately $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 semiannual 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
----------------------
April 2000
[PHOTO]
William M. Ennis
President and CEO
Dear Shareholders,
We are pleased to provide the Evergreen Southern States Municipal Bond Funds
semiannual report, which covers the six-month period ended February 29, 2000.
Uncertainty over Interest Rates Influences the Markets
The last six months has been a difficult environment for fixed-income investors.
The Federal Reserve Board increased interest rates three times during the period
in an attempt to pre-empt a potentially inflationary environment. Amidst the
volatility, the yield on the bellwether 30-year Treasury bond rose from 5.58% at
the end of February 1999 to 6.14% by the end of February 2000.
The Federal Reserve Bank's "tightening bias" leads many to anticipate further
interest rate increases in order to stem even the slightest inflationary
pressure. We believe that the economy is still fundamentally strong, and that
inflation will stay contained, producing only moderate upward pressure on
interest rates. We believe bonds are relatively attractive over the long term
compared to other asset classes, particularly because "real" interest rates are
high by historical standards.
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
1999 tax information, an investment education center, interactive calculators to
assist your investment planning and general information about Evergreen Funds.
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 should make it simple for you to choose the most
appropriate for your portfolio.
We would like to 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 February 29, 2000
Portfolio
Characteristics
---------------
Total Net Assets $403,075,839
Average Credit Quality BB+
Effective Maturity 16.0 years
Average Duration 8.1 years
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CURRENT INVESTMENT STYLE1
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[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 2/29/2000.
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.
1Source: 2000 Morningstar, Inc.
2Past 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.
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. Performance
includes the reinvestment of income dividends and capital gains distributions.
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 country or region may face
increased risk of price fluctuation over more diversified funds due to adverse
developments within that country or region.
Income may be subject to federal alternative minimum tax.
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PERFORMANCE AND RETURNS2
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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
Average Annual Returns*
6 month with sales charge -7.54% -8.03% -5.20% n/a
6 month w/o sales charge -2.95% -3.31% -3.31% -2.83%
1 year with sales charge -9.62% -9.41% -6.71% n/a
1 year w/o sales charge -5.10% -5.81% -5.81% -4.86%
3 years 1.87% 1.86% 3.02% 3.79%
5 years 4.75% 4.87% 5.45% 6.01%
Since Portfolio Inception 5.65% 5.84% 6.08% 6.47%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
30-day SEC yield 5.85% 5.39% 5.39% 6.40%
Taxable Equivalent Yield** 9.69% 8.92% 8.92% 10.60%
6-month income dividends
per share $0.29 $0.25 $0.25 $0.30
* 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 will fluctuate, and there can be no guarantee the Fund will
achieve its objectives or any particular tax-exempt yield.
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LONG TERM GROWTH
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[GRAPH]
Evergreen FL High Lehman Brothers Consumer Price
Income Muni A Municipals Index - US
6/30/92 9,525 10,000 10,000
2/28/93 10,450 10,957 10,207
2/28/94 11,289 11,563 10,464
2/28/95 11,490 11,781 10,763
2/29/96 12,858 13,083 11,049
2/28/97 13,706 13,803 11,384
2/28/98 15,169 15,065 11,548
2/28/99 16,027 15,991 11,733
2/29/00 15,210 15,630 12,045
Comparison of a $10,000 investment in Evergreen Florida High Income Municipal
Bond Fund, Class A shares2, 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 nor 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
Portfolio
Management
--------------------
[PHOTO]
Richard K. Marrone
Tenure: January 1995
Evergreen Florida High Income Municipal Bond Fund, Class A Shares, returned
- -2.95% for the six-month period ended February 29, 2000. The Fund's benchmark,
the Lehman Brothers Municipal Bond Index, returned -0.02% for the same period.
Performance is before the deduction of any applicable sales charges. We
attribute the difference in the Fund's performance vs. its benchmark to the
Fund's higher concentration of higher-income, lower-rated securities. These
bonds contributed substantially to the Fund's yield during the period; however,
at the same time, lower-rated securities experienced greater price erosion than
their higher-rated counterparts.
Increasing concerns about the ability of lower-rated credits to manage Y2K
issues, reduced market liquidity and a rising interest rate environment pushed
the prices of high income bonds lower--and their yields higher--over the past
six months. The environment created a disparity in the performance between
higher-rated and lower-rated securities. Yield relationships began to stabilize
toward the end of the period when market conditions improved.
The Fund's investment strategies focused on building income and yield, as well
as preserving capital. We sold bonds with lower coupons and longer maturities,
which tend to experience greater price fluctuations, and invested in securities
with higher coupons, higher yields, and shorter maturities. These bonds both
enhanced the Fund's income and increased its price stability. Additionally,
there was a wider selection of bonds with these characteristics. Several housing
bonds fit our objective and offered attractive value.
We think interest rates could drift a little higher in the months ahead,
although by and large, we expect them to move within a range. In that
environment, we would continue to emphasize income, yield and capital
preservation, taking advantage of the opportunities created from the shift in
market conditions.
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PORTFOLIO COMPOSITION
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(as a percentage of 2/29/2000 portfolio assets)
[GRAPH]
Industrial Development -- 19.1%
Housing -- 18.8%
Community Development -- 17.2%
Other -- 16.5%
Continuing Care Retirement
Community -- 7.9%
Hospital -- 4.1%
Pollution Control -- 3.4%
Sales Tax -- 3.4%
Utilities -- 3.3%
Water & Sewer -- 3.3%
Education -- 3.0%
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PORTFOLIO QUALITY
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(as a percentage of 2/29/2000 portfolio assets)
[GRAPH]
AAA -- 11.6%
AA -- 0.5%
A -- 3.5%
BBB -- 13.9%
BB -- 0.4%
B -- 0.2%
Not Rated -- 69.9%
3
<PAGE>
EVERGREEN
Florida Municipal Bond Fund
Fund at a Glance as of February 29, 2000
Portfolio
Characteristics
---------------
Total Net Assets $539,950,762
Average Credit Quality AA+
Effective Maturity 11.0 years
Average Duration 7.2 years
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CURRENT INVESTMENT STYLE1
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[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 2/29/2000.
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.
1Source: 2000 Morningstar, Inc.
2Past 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.
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. Had the fee not been waived, the returns would have been lower. Performance
includes the reinvestment of income dividends and capital gains distributions.
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 country or region may face
increased risk of price fluctuation over more diversified funds due to adverse
developments within that country or region.
Income may be subject to federal alternative minimum tax.
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS2
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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
Average Annual Returns*
6 month with sales charge -5.81% -6.34% -3.46% n/a
6 month w/o sales charge -1.08% -1.54% -1.54% -1.04%
1 year with sales charge -8.82% -8.82% -6.10% n/a
1 year w/o sales charge -4.31% -5.19% -5.19% -4.24%
3 years 1.93% 1.77% 2.93% 3.68%
5 years 4.03% 4.00% 4.64% 5.12%
Since Portfolio Inception 6.43% 6.48% 6.69% 6.90%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
30-day SEC yield 5.05% 4.40% 4.40% 5.41%
Taxable Equivalent Yield** 8.36% 7.28% 7.28% 8.96%
6-month income dividends
per share $0.23 $0.19 $0.19 $0.23
6-month capital gain distributions
per share $0.03 $0.03 $0.03 $0.03
* 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 will fluctuate, and there can be no guarantee the Fund will
achieve its objectives or any particular tax-exempt yield.
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LONG TERM GROWTH
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[GRAPH]
Lehman Brothers Consumer Price
FL Muni A Municipals Index - US
2/28/90 9,525 10,000 10,000
2/28/91 10,456 10,922 10,531
2/29/92 11,526 12,013 10,828
2/28/93 13,222 13,666 11,180
2/28/94 13,884 14,423 11,461
2/28/95 14,271 14,695 11,789
2/29/96 15,661 16,318 12,102
2/28/97 16,419 17,217 12,469
2/28/98 18,034 18,790 12,648
2/28/99 19,076 19,945 12,852
2/29/00 18,252 19,495 13,193
Comparison of a $10,000 investment in Evergreen Florida Municipal Bond Fund,
Class A shares2, 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 nor 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.
4
<PAGE>
EVERGREEN
Florida Municipal Bond Fund
Portfolio
Management
------------------
[PHOTO]
Richard K. Marrone
Tenure: January 1997
Evergreen Florida Municipal Bond Fund, Class A shares, returned -1.08% for the
six-month period ended February 29, 2000. The Fund's benchmark, the Lehman
Brothers Municipal Bond Index, returned -0.02% for the same period. Performance
is before the deduction of any applicable sales charges.
Rising interest rates and shifting yield relationships created a challenging
investment environment over the past six months. Although climbing interest
rates pushed the prices of all municipal bonds lower, higher-rated bonds
maintained their value better than lower-rated bonds. Investor concerns about
the ability of lower-rated credits to manage Y2K issues and reduced market
liquidity helped create the disparity in performance between the two credit
sectors. Investors demanded increasingly greater yield advantages for
lower-rated bonds.
The Fund's strategies emphasized income, yield and price stability. We sold
bonds with lower coupons and longer maturities, which tend to experience wider
price fluctuations as interest rates change. We swapped those positions for
higher yielding bonds with higher coupons and shorter maturities. Bonds with
those characteristics enhanced both income and price stability, and afforded the
Fund greater selection than other types of bonds provided. We found particularly
attractive value in the housing sector.
Over the next six months, we anticipate higher, but generally range-bound
interest rates. Market conditions began to improve toward the end of the fiscal
period, which have helped stabilize yield relationships. We intend to continue
our strategies of building income, yield and capital preservation, while seeking
opportunities created by the market's changing conditions.
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PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
(as a percentage of 2/29/2000 portfolio assets)
[GRAPH]
Housing -- 21.4%
Other -- 21.1%
Hospital -- 18.9%
General Obligation -
Local -- 10.7%
Transportation -- 5.2%
Continuing Care
Retirement Center -- 5.1%
Industrial Development -- 4.9%
Water & Sewer -- 4.5%
Public Facility -- 4.2%
Electric Revenue -- 4.0%
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PORTFOLIO QUALITY
- --------------------------------------------------------------------------------
(as a percentage of 2/29/2000 portfolio assets)
[GRAPH]
AAA -- 55.5%
AA -- 12.8%
A -- 11.4%
BBB -- 18.5%
Not Rated -- 1.8%
5
<PAGE>
EVERGREEN
Georgia Municipal Bond Fund
Fund at a Glance as of February 29, 2000
Portfolio
Characteristics
---------------
Total Net Assets $84,361,100
Average Credit Quality AA
Effective Maturity 12.2 years
Average Duration 7.1 years
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CURRENT INVESTMENT STYLE1
- --------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 2/29/2000.
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.
1Source: 2000 Morningstar, Inc.
2Past 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.
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. Performance includes the
reinvestment of income dividends and capital gains distributions.
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 country or region may face
increased risk of price fluctuation over more diversified funds due to adverse
developments within that country or region.
Income may be subject to federal alternative minimum tax.
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS2
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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*
6 month with sales charge -5.53% -6.00% n/a
6 month w/o sales charge -0.79% -1.17% -0.67%
1 year with sales charge -8.15% -8.00% n/a
1 year w/o sales charge -3.61% -4.33% -3.37%
3 years 2.38% 2.38% 4.33%
5 years 4.40% 4.48% 5.70%
Since Portfolio Inception 3.48% 3.52% 4.48%
Maximum Sales Charge 4.75% 5.00% n/a
Front End CDSC
30-day SEC yield 4.97% 4.47% 5.47%
Taxable Equivalent Yield** 8.23% 7.40% 9.06%
6-month income dividends
per share $0.24 $0.21 $0.26
* 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 will fluctuate, and there can be no guarantee the Fund will
achieve its objectives or any particular tax-exempt yield.
- --------------------------------------------------------------------------------
LONG TERM GROWTH
- --------------------------------------------------------------------------------
[GRAPH]
Evergreen GA Lehman Brothers Consumer Price
Muni Bond A Municipals Index - US
7/31/93 9,524 10,000 10,000
2/28/94 9,615 10,315 10,159
2/28/95 9,629 10,509 10,450
2/29/96 10,651 11,670 10,727
2/28/97 11,129 12,313 11,053
2/28/98 12,298 13,438 11,212
2/28/99 13,014 14,265 11,392
2/29/00 12,545 13,943 11,695
Comparison of a $10,000 investment in Evergreen Georgia Municipal Bond Fund,
Class A shares2, 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 nor 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.
6
<PAGE>
EVERGREEN
Georgia Municipal Bond Fund
Portfolio
Management
---------------------
[PHOTO]
Charles Jeanne
Tenure: November 1997
Evergreen Georgia Municipal Bond Fund, Class A Shares, returned -0.79% for the
six-month period ended February 29, 2000, slightly lagging the -0.02% return of
its benchmark, the Lehman Brothers Municipal Bond Index. Performance is before
deduction of any applicable sales charges. We attribute the modest difference to
the Fund's duration, which was longer than that of the Index for most of the
period. The longer duration, which reflected securities that helped boost the
Fund's yield, increased the Fund's sensitivity to interest rate changes. During
the period, interest rates rose pushing bond prices lower.
Quiet investment activity and range-bound interest rate movements characterized
the municipal bond market over the past six months. In particular, caution
regarding Y2K limited both supply and demand, and reduced overall market
liquidity. Supply has remained light in the new year, which, while restricting
selection, has helped support prices.
Our investment strategies focused on maximizing income and yield, as well as
enhancing price stability. Bond structure was key. We emphasized securities with
both higher yields and coupons; conversely, we sold securities that had lower
coupons and longer maturities, or those that tend to experience greater price
swings. We focused investments on the 15-20 year maturity range, which, in our
opinion, represented the most attractive balance of yield and price stability.
Tax swaps were an important part of our strategy, ultimately enabling the Fund
to buy bonds with higher yields. We also increased the Fund's position in cash
equivalents, which reduced price fluctuations when interest rates rose. As of
February 29, 2000, the average quality of the Fund was "AA".
Looking ahead, we believe lack of supply will remain the major influence on the
Georgia municipal bond market, and that interest rates will continue to move in
a range. In that environment, we intend to maintain a defensive strategy,
keeping our focus on income and yield. We expect bond structure to be critical,
targeting securities with higher coupons and intermediate-term maturities.
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
(as a percentage of 2/29/2000 portfolio assets)
[GRAPH]
General Obligation -
Local -- 22.9%
Hospital -- 15.3%
Industrial Development -- 13.3%
Water & Sewer -- 10.0%
Other -- 9.7%
Electric Revenue -- 8.3%
Public Facility -- 8.2%
Airlines -- 4.6%
Airports -- 4.0%
Continuing Care Retirement
Center -- 3.7%
- --------------------------------------------------------------------------------
PORTFOLIO QUALITY
- --------------------------------------------------------------------------------
(as a percentage of 2/29/2000 portfolio assets)
[GRAPH]
AAA -- 55.2%
AA -- 15.1%
A -- 5.9%
BBB -- 14.8%
Not Rated -- 9.0%
7
<PAGE>
EVERGREEN
Maryland Municipal Bond Fund
Fund at a Glance as of February 29, 2000
Portfolio
Characteristics
---------------
Total Net Assets $40,224,092
Average Credit Quality AA-
Effective Maturity 12.3 years
Average Duration 6.8 years
- --------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE1
- --------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 2/29/2000.
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.
1Source: 2000 Morningstar, Inc.
2Past 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.
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. Performance includes the
reinvestment of income dividends and capital gains distributions.
Funds that concentrate their investments in a single country or region may face
increased risk of price fluctuation over more diversified funds due to adverse
developments within that country or region.
Income may be subject to federal alternative minimum tax.
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS2
- --------------------------------------------------------------------------------
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
Average Annual Returns*
6 month with sales charge -5.32% -5.81% -2.89% n/a
6 month w/o sales charge -0.58% -0.95% -0.95% -0.45%
1 year with sales charge -7.90% -7.76% -4.99% n/a
1 year w/o sales charge -3.34% -4.06% -4.06% -3.10%
3 years 1.26% 1.42% 2.67% 3.16%
5 years 2.87% 3.49% 3.84% 4.14%
Since Portfolio Inception 4.40% 4.88% 5.01% 5.14%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
30-day SEC yield 4.66% 4.14% 4.14% 5.14%
Taxable Equivalent Yield** 7.72% 6.85% 6.85% 8.51%
6-month income dividends
per share $0.24 $0.20 $0.20 $0.26
* 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 will fluctuate, and there can be no guarantee the Fund will
achieve its objectives or any particular tax-exempt yield.
- --------------------------------------------------------------------------------
LONG TERM GROWTH
- --------------------------------------------------------------------------------
[GRAPH]
Evergreen MD Lehman Brothers Consumer Price Lehman Brothers
Muni Bd A Municipals Index - US Munis 10-Yr
10/31/90 9,524 10,000 10,000 10,000
2/28/91 9,715 10,473 10,097 10,487
2/29/92 10,433 11,519 10,382 11,474
2/28/93 11,848 13,105 10,719 13,165
2/28/94 12,319 13,830 10,989 13,866
2/28/95 12,365 14,091 11,303 14,148
2/29/96 13,507 15,648 11,603 15,806
2/28/97 13,770 16,509 11,955 16,646
2/28/98 14,692 18,018 12,127 18,140
2/28/99 15,560 19,126 12,322 19,274
2/29/00 15,040 18,695 12,649 19,197
Comparison of a $10,000 investment in Evergreen Maryland Municipal Bond Fund,
Class A shares2, versus a similar investment in the Lehman Brothers Municipal
Bond Index (LBMBI), the Lehman Brothers Municipal 10-year Bond Index (LBM10Y)
and the Consumer Price Index (CPI).
The LBMBI and LBM10Y are unmanaged market indices and do not include transaction
costs associated with buying and selling securities nor 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
Maryland Municipal Bond Fund
Portfolio
---------------------------
Management
Keith Lowe, CFA
Tenure: November 1999
Evergreen Maryland Municipal Bond Fund, Class A Shares, returned -0.58% for the
six-month period ended February 29, 2000, slightly lagging the -0.02% return of
its benchmark, the Lehman Brothers Municipal Bond Index. Performance is before
the deduction of any applicable sales charges. We attribute the difference to
the Fund's longer duration and longer average maturity. While these factors
increased the Fund's sensitivity to interest rate changes--interest rates rose
during the period, which pushed bond prices lower--they also reflected the
Fund's investment in securities that bolstered its yield.
The environment for Maryland municipal bonds was challenging over the past six
months. Though interest rates fell in February, they rose for most of the
period. Additionally, investors faced tight supply, heavy cash outflows and
restricted market liquidity, particularly in consideration of Y2K concerns.
Strong economic conditions reduced the need for debt issuance and rising
interest rates limited refundings. Supply was particularly low for higher
quality securities.
The Fund's strategies focused on increasing income and yield, as well as
enhancing price stability. We emphasized bond structure, selecting securities
with higher coupons and shorter call dates. In addition to producing a more
generous income stream, these bonds also shortened the Fund's duration, reducing
price fluctuations. Tax swaps also boosted the Fund's yield, as we sold
lower-yielding bonds and booked securities at higher yields.
In the months ahead, we think many of the market conditions we witnessed over
the past six months will continue. We expect yield advantages among the higher
quality credit tiers to remain limited and for yield advantages provided by
lower quality bonds to increase. We think supply will stay tight. In that
environment, we intend to continue our emphasis on yield, income and price
stability--seeking value and focusing heavily on bond structure.
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
(as a percentage of 2/29/2000 portfolio assets)
[GRAPH]
General Obligations -- 18.6%
Other -- 17.2%
Resource Recovery -- 10.9%
Water & Sewer -- 10.0%
Lease Revenue -- 8.7%
Housing -- 8.5%
Electric Utility -- 7.7%
Hospital -- 6.9%
Education -- 6.5%
Industrial Development -- 5.0%
- --------------------------------------------------------------------------------
PORTFOLIO QUALITY
- --------------------------------------------------------------------------------
(as a percentage of 2/29/2000 portfolio assets)
[GRAPH]
AAA -- 30.7%
AA -- 27.0%
A -- 22.4%
BBB -- 9.2%
Not Rated -- 10.7%
9
<PAGE>
EVERGREEN
North Carolina Municipal Bond Fund
Fund at a Glance as of February 29, 2000
Portfolio
Characteristics
---------------
Total Net Assets $282,892,839
Average Credit Quality AA
Effective Maturity 11.1 years
Average Duration 7.1 years
- --------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE1
- --------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 2/29/2000.
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.
1Source: 2000 Morningstar, Inc.
2Past 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.
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. Performance includes the
reinvestment of income dividends and capital gains distributions.
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 country or region may face
increased risk of price fluctuation over more diversified funds due to adverse
developments within that country or region.
Income may be subject to federal alternative minimum tax.
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS2
- --------------------------------------------------------------------------------
Portfolio Inception Date: 1/11/1993 Class A Class B Class Y
Class Inception Date 1/11/1993 1/11/1993 2/28/1994
- --------------------------------------------------------------------------------
Average Annual Returns*
6 month with sales charge -6.09% -6.54% n/a
6 month w/o sales charge -1.39% -1.76% -1.27%
1 year with sales charge -8.77% -8.53% n/a
1 year w/o sales charge -4.18% -4.90% -3.94%
3 years 2.08% 2.07% 4.02%
5 years 4.06% 4.13% 5.35%
Since Portfolio Inception 4.09% 4.09% 5.02%
Maximum Sales Charge 4.75% 5.00% n/a
Front End CDSC
30-day SEC yield 4.91% 4.41% 5.41%
Taxable Equivalent Yield** 8.13% 7.30% 8.96%
6-month income dividends
per share $0.25 $0.21 $0.26
6-month capital gains distributions
per share $0.06 $0.06 $0.06
* 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 will fluctuate, and there can be no guarantee the Fund will
achieve its objectives or any particular tax-exempt yield.
- --------------------------------------------------------------------------------
LONG TERM GROWTH
- --------------------------------------------------------------------------------
[GRAPH]
Evergreen NC Lehman Brothers Consumer Price
Muni Bond A Municipals Index - US
1/31/93 9,526 10,000 10,000
2/28/93 9,720 10,362 10,035
2/28/94 10,332 10,935 10,288
2/28/95 10,337 11,141 10,582
2/29/96 11,466 12,372 10,863
2/28/97 11,858 13,053 11,192
2/28/98 13,094 14,246 11,353
2/28/99 13,824 15,122 11,536
2/29/00 13,245 14,781 11,842
Comparison of a $10,000 investment in Evergreen North Carolina Municipal Bond
Fund, Class A shares2, 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 nor 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.
10
<PAGE>
EVERGREEN
North Carolina Municipal Bond Fund
Portfolio
Management
--------------------------
Richard K. Marrone
Tenure: January 1993
Evergreen North Carolina Municipal Bond Fund, Class A shares, returned -1.39%
for the six-month period ended February 29, 2000. The Fund's benchmark, the
Lehman Brothers Municipal Bond Index, returned -0.02% for the same period.
Performance is before the deduction of any applicable sales charges.
Over the past six months, municipal bond investors monitored rising interest
rates and shifting yield relationships. Although higher interest rates pushed
the prices of all municipal bonds lower, concerns about the ability of
lower-rated credits to manage Y2K issues and reduced market liquidity caused
lower-rated bond prices to fall harder than those of their higher-rated
counterparts. The performance disparity between higher-rated credits and
lower-rated credits was reflected in yield relationships. Investors demanded
increasingly higher yields for lower-rated bonds. Yield relationships began to
stabilize toward the end of the fiscal period when market conditions started to
improve.
The Fund maintained a defensive strategy, focusing on building income and yield.
We sold lower coupon bonds with longer maturities because their prices tend to
fluctuate more as interest rates change. In contrast, we increased the Fund's
position in higher-yielding bonds with higher coupons and shorter
maturities--bonds that enhanced both yield and price stability.
Bonds with these characteristics also afforded the Fund greater selection than
other bonds provided. We found attractive value in several housing issues.
While we think interest rates could drift higher in the months ahead. We believe
they will move within a range. We expect to take advantage of the higher rates
becoming available, seeking value and continuing our emphasis on income, yield
and price stability.
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
(as a percentage of 2/29/2000 portfolio assets)
[GRAPH]
Hospital -- 21.7%
Other -- 16.6%
Electric Revenue -- 14.7%
Housing -- 13.8%
General Obligation - Local -- 12.0%
Continuing Care Retirement Center -- 6.3%
Industrial Development -- 5.8%
Lease -- 4.7%
Pre-Refunding -- 4.4%
- --------------------------------------------------------------------------------
PORTFOLIO QUALITY
- --------------------------------------------------------------------------------
(as a percentage of 2/29/2000 portfolio assets)
[GRAPH]
AAA -- 43.0%
AA -- 17.0%
A -- 20.0%
BBB -- 10.0%
Not Rated -- 10.0%
11
<PAGE>
EVERGREEN
South Carolina Municipal Bond Fund
Fund at a Glance as of February 29, 2000
Portfolio
Characteristics
---------------
Total Net Assets $57,195,617
Average Credit Quality AA
Effective Maturity 13.1 years
Average Duration 7.9 years
- --------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE1
- --------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 2/29/2000.
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.
1Source: 2000 Morningstar, Inc.
2Past 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.
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. Performance includes the
reinvestment of income dividends and capital gains distributions. 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 country or region may face
increased risk of price fluctuation over more diversified funds due to adverse
developments within that country or region.
Income may be subject to federal alternative minimum tax.
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS2
- --------------------------------------------------------------------------------
Portfolio Inception Date: 1/3/1994 Class A Class B Class Y
Class Inception Date 1/3/1994 1/3/1994 2/28/1994
- --------------------------------------------------------------------------------
Average Annual Returns*
6 month with sales charge -5.41% -5.89% n/a
6 month w/o sales charge -0.70% -1.08% -0.58%
1 year with sales charge -7.90% -7.66% n/a
1 year w/o sales charge -3.26% -3.99% -3.02%
3 years 2.14% 2.11% 4.05%
5 years 4.70% 4.76% 5.98%
Since Portfolio Inception 3.56% 3.64% 4.64%
Maximum Sales Charge 4.75% 5.00% n/a
Front End CDSC
30-day SEC yield 4.71% 4.21% 5.20%
Taxable Equivalent Yield** 7.80% 6.97% 8.61%
6-month income dividends
per share $0.23 $0.20 $0.25
6-month capital gains distributions
per share $0.07 $0.07 $0.07
* 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 will fluctuate, and there can be no guarantee the Fund
will achieve its objectives or any particular tax-exempt yield.
- --------------------------------------------------------------------------------
LONG TERM GROWTH
- --------------------------------------------------------------------------------
[GRAPH]
Evergreen SC Lehman Brothers Consumer Price
Muni Bond A Municipals Index - US
1/31/94 9,521 10,000 10,000
2/28/94 9,177 9,741 10,034
2/28/95 9,254 9,925 10,321
2/29/96 10,349 11,021 10,595
2/28/97 10,926 11,628 10,917
2/28/98 11,975 12,690 11,074
2/28/99 12,629 13,471 11,252
2/29/00 12,217 13,167 11,551
Comparison of a $10,000 investment in Evergreen South Carolina Municipal Bond
Fund, Class A shares2, 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 nor 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.
12
<PAGE>
EVERGREEN
South Carolina Municipal Bond Fund
Portfolio
Management
--------------------------
[PHOTO]
Charles Jeanne
Tenure: January 1997
Evergreen South Carolina Municipal Bond Fund, Class A Shares, posted a -0.70%
total return for the six-month period ended February 29, 2000, modestly lagging
its benchmark, the Lehman Brothers Municipal Bond Index, which returned -0.02%
for the same period. Performance is before the deduction of any applicable sales
charges. We attribute the modest difference to the Fund's duration, which was
slightly longer than that of the Index, and reflected securities that helped
increase the Fund's yield. The longer duration made the Fund more sensitive to
interest rate changes. During the period, interest rates trended higher which
pushed bond prices lower.
Restricted supply, light demand and reduced market liquidity, particularly in
consideration of Y2K concerns, kept municipal bond market activity quiet over
the past six months. Supply has remained low in the early part of 2000, which,
while limiting selection, has helped support prices.
The Fund's investment strategies focused on maximizing income and yield, and
enhancing price stability. Bond structure was a critical part of our strategy.
We emphasized securities with higher coupons and yields, such as housing and
healthcare bonds. We focused on the 15-20 year maturity range, which, in our
opinion, represented the best combination of yield and price stability. In
contrast, we sold bonds with lower coupons and longer maturities--bonds that
tend to experience greater price swings. A smaller position in these securities
enhanced price stability. Tax swaps also helped us boost the Fund's yield by
selling lower-yielding bonds and buying bonds with higher yields. Finally, we
increased the Fund's cash position, which reduced price fluctuations when
interest rates rose. As of February 29, 2000, the Fund's average quality stood
at "AA".
Going forward, we think lack of supply will continue to be a major influence on
South Carolina municipal bond prices and anticipate interest rates to trade
within a range. With that as a background, we expect to maintain the Fund's
defensive strategy, keeping an emphasis on income and yield.
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
(as a percentage of 2/29/2000 portfolio assets)
[GRAPH]
Hospital -- 22.7%
Industrial Development -- 20.1%
Housing -- 11.9%
Other -- 9.9%
Education -- 9.4%
Utilities -- 8.0%
General Obligation - Local -- 6.0%
General Obligation - State -- 5.6%
Water & Sewer -- 5.3%
Airport -- 1.1%
- --------------------------------------------------------------------------------
PORTFOLIO QUALITY
- --------------------------------------------------------------------------------
(as a percentage of 2/29/2000 portfolio assets)
[GRAPH]
AAA -- 45.6%
AA -- 18.0%
A -- 4.8%
BBB -- 9.4%
Not Rated -- 22.2%
13
<PAGE>
EVERGREEN
Virginia Municipal Bond Fund
Fund at a Glance as of February 29, 2000
Portfolio
Characteristics
---------------
Total Net Assets $166,411,253
Average Credit Quality AA
Effective Maturity 13.7 years
Average Duration 7.5 years
- --------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE1
- --------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 2/29/2000.
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.
1Source: 2000 Morningstar, Inc.
2Past 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.
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. Performance includes the
reinvestment of income dividends and capital gains distributions.
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 country or region may face
increased risk of price fluctuation over more diversified funds due to adverse
developments within that country or region.
Income may be subject to federal alternative minimum tax.
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS2
- --------------------------------------------------------------------------------
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*
6 month with sales charge -5.09% -5.54% n/a
6 month w/o sales charge -0.31% -0.68% -0.19%
1 year with sales charge -7.17% -6.97% n/a
1 year w/o sales charge -2.53% -3.26% -2.28%
3 years 2.59% 2.56% 4.51%
5 years 4.47% 4.54% 5.75%
Since Portfolio Inception 3.75% 3.79% 4.75%
Maximum Sales Charge 4.75% 5.00% n/a
Front End CDSC
30-day SEC yield 4.78% 4.27% 5.27%
Taxable Equivalent Yield** 7.91% 7.07% 8.73%
6-month income dividends
per share $0.24 $0.20 $0.25
6-month capital gains distributions
per share $0.02 $0.02 $0.02
* 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 will fluctuate, and there can be no guarantee the Fund will
achieve its objectives or any particular tax-exempt yield.
- --------------------------------------------------------------------------------
LONG TERM GROWTH
- --------------------------------------------------------------------------------
[GRAPH]
Evergreen VA Lehman Brothers Consumer Price
Muni Bond A Municipals Index - US
7/31/93 9,524 10,000 10,000
2/28/94 9,609 10,315 10,159
2/28/95 9,772 10,509 10,450
2/29/96 10,770 11,670 10,727
2/28/97 11,266 12,313 11,053
2/28/98 12,347 13,438 11,212
2/28/99 13,096 14,265 11,392
2/29/00 12,765 13,943 11,695
Comparison of a $10,000 investment in Evergreen Virginia Municipal Bond Fund,
Class A shares2, 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 nor 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
Virginia Municipal Bond Fund
Portfolio
Management
-----------------------
[PHOTO]
Charles Jeanne
Tenure: July 1993
Evergreen Virginia Municipal Bond Fund, Class A Shares, returned -0.31.% for the
six-month period ended February 29, 2000, modestly lagging the -0.02% return of
its benchmark, the Lehman Brothers Municipal Bond Index. Performance is before
the deduction of any applicable sales charges. We attribute the difference to
the Fund's longer duration. The longer duration, which increased the Fund's
sensitivity to interest rate changes, reflected securities that helped boost the
Fund's yield. During the period, interest rates rose pushing bond prices lower.
Restricted supply, low demand and reduced market liquidity all contributed to a
quiet investment atmosphere for municipal bonds over the past six months.
Investors were particularly cautious in anticipation of Y2K concerns and the
possibility of a tighter credit stance from the Federal Reserve Board. Supply
has remained light into the new year, which has limited bond selection but also
helped support prices.
The Fund's investment strategies centered on maximizing income and yield, and
enhancing price stability. Bond structure was key. We selected securities with
both higher coupons and yields, such as housing and healthcare bonds, focusing
on maturities in the 15-20 year range. We believe those maturities provided the
best balance of yield and price stability. In contrast, we sold bonds with lower
coupons and longer maturities--bonds that tend to experience greater price
swings. Reducing those holdings increased price stability. We also raised the
Fund's cash position, which helped steady the net asset value when interest
rates rose. Finally, tax swaps played an important role in bolstering the Fund's
yield, as we sold lower-yielding bonds and bought bonds with higher yields. As
of February 29, 2000, the Fund's average quality was "AA".
Going forward, we think the lack of supply will continue to be a major force for
the municipal bond market while interest rates trade within a range. In that
environment, we intend to maintain a defensive posture, emphasizing income and
yield.
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
(as a percentage of 2/29/2000 portfolio assets)
[GRAPH]
General Obligation - Local -- 19.7%
Other -- 18.7%
Housing -- 15.1%
Transportation -- 11.3%
Public Facilities -- 8.0%
Healthcare -- 7.9%
Education -- 6.5%
Lease Revenue -- 4.4%
Water & Sewer -- 3.3%
Community Development District -- 2.6%
Resource Recovery -- 2.5%
- --------------------------------------------------------------------------------
PORTFOLIO QUALITY
- --------------------------------------------------------------------------------
(as a percentage of 2/29/2000 portfolio assets)
[GRAPH]
AAA -- 33.4%
AA -- 40.4%
A -- 7.5%
BBB -- 8.7%
Not Rated -- 10.0%
15
<PAGE>
EVERGREEN
Florida High Income Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 29, 2000 ------------------------------------------------ Year Ended
(Unaudited) 1999 1998 1997 1996 1995 (a) April 30, 1995
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $ 10.68 $ 11.26 $ 10.89 $ 10.42 $ 10.40 $ 10.16 $ 10.08
-------- -------- -------- -------- ------- ------- -------
Income from investment
operations
Net investment income 0.29 0.57 0.58 0.62 0.63 0.21 0.65
Net realized and
unrealized gains or
losses on securities (0.60) (0.58) 0.37 0.47 0.02 0.24 0.08
-------- -------- -------- -------- ------- ------- -------
Total from investment
operations (0.31) (0.01) 0.95 1.09 0.65 0.45 0.73
-------- -------- -------- -------- ------- ------- -------
Less distributions to
shareholders from
Net investment income (0.29) (0.57) (0.58) (0.62) (0.63) (0.21) (0.65)
Net realized gains 0 0++ 0 0 0 0 0
-------- -------- -------- -------- ------- ------- -------
Total distributions to
shareholders (0.29) (0.57) (0.58) (0.62) (0.63) (0.21) (0.65)
-------- -------- -------- -------- ------- ------- -------
Net asset value, end of
period $ 10.08 $ 10.68 $ 11.26 $ 10.89 $ 10.42 $ 10.40 $ 10.16
-------- -------- -------- -------- ------- ------- -------
Total return* (2.95%) (0.16%) 8.94% 10.77% 6.42% 4.43% 7.56%
Ratios and supplemental
data
Net assets, end of
period (thousands) $222,476 $269,616 $279,079 $119,942 $76,267 $59,551 $65,043
Ratios to average net
assets
Expenses# 0.87%+ 0.86% 0.89% 0.88% 0.85% 1.07%+ 0.60%
Net investment income 5.64%+ 5.10% 5.15% 5.86% 6.02% 5.92%+ 6.52%
Portfolio turnover rate 22% 29% 70% 32% 42% 14% 28%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 29, 2000 -----------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995 (b)
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $ 10.68 $ 11.26 $ 10.89 $ 10.42 $ 10.40 $10.41
-------- -------- -------- ------- ------- ------
Income from investment
operations
Net investment income 0.25 0.48 0.50 0.54 0.55 0.08
Net realized and
unrealized gains or
losses on securities (0.60) (0.58) 0.37 0.47 0.02 (0.01)
-------- -------- -------- ------- ------- ------
Total from investment
operations (0.35) (0.10) 0.87 1.01 0.57 0.07
-------- -------- -------- ------- ------- ------
Less distributions to
shareholders from
Net investment income (0.25) (0.48) (0.50) (0.54) (0.55) (0.08)
Net realized gains 0 0++ 0 0 0 0
-------- -------- -------- ------- ------- ------
Total distributions to
shareholders (0.25) (0.48) (0.50) (0.54) (0.55) (0.08)
-------- -------- -------- ------- ------- ------
Net asset value, end of
period $ 10.08 $ 10.68 $ 11.26 $ 10.89 $ 10.42 $10.40
-------- -------- -------- ------- ------- ------
Total return* (3.31%) (0.91%) 8.13% 9.95% 5.63% 0.64%
Ratios and supplemental
data
Net assets, end of
period (thousands) $116,044 $130,259 $103,309 $63,475 $19,219 $3,137
Ratios to average net
assets
Expenses# 1.62%+ 1.61% 1.64% 1.63% 1.59% 1.09%+
Net investment income 4.89%+ 4.34% 4.46% 5.09% 5.27% 3.40%+
Portfolio turnover rate 22% 29% 70% 32% 42% 14%
</TABLE>
(a) For the four months ended August 31, 1995. The Fund changed its fiscal year
end from April 30 to August 31, effective August 31, 1995.
(b) For the period from July 10, 1995 (commencement of class operations) to Au-
gust 31, 1995.
* Excluding applicable sales charges.
+ Annualized.
++ Represents an amount less than $0.01 per share.
# The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
16
<PAGE>
EVERGREEN
Florida High Income Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 29, 2000 -------------------------
(Unaudited) 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 0.25 0.48 0.24
Net realized and unrealized
gains or losses on securities (0.60) (0.58) 0.15
------ ---------- ----------
Total from investment operations (0.35) (0.10) 0.39
------ ---------- ----------
Less distributions to
shareholders from
Net investment income (0.25) (0.48) (0.24)
Net realized gains 0 0++ 0
------ ---------- ----------
Total distributions to
shareholders (0.25) (0.48) (0.24)
------ ---------- ----------
Net asset value, end of period $10.08 $ 10.68 $ 11.26
------ ---------- ----------
Total return* (3.31%) (0.91%) 3.50%
Ratios and supplemental data
Net assets, end of period
(thousands) $6,920 $ 6,749 $ 1,098
Ratios to average net assets
Expenses# 1.61%+ 1.61% 1.65%+
Net investment income 4.89%+ 4.31% 4.21%+
Portfolio turnover rate 22% 29% 70%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 29, 2000 -----------------------------------
(Unaudited) 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 0.30 0.60 0.61 0.65 0.63
Net realized and
unrealized gains or
losses on securities (0.60) (0.58) 0.37 0.47 (0.06)
------- ------- ------- ------ ------
Total from investment
operations (0.30) 0.02 0.98 1.12 0.57
------- ------- ------- ------ ------
Less distributions to
shareholders from
Net investment income (0.30) (0.60) (0.61) (0.65) (0.63)
Net realized gains 0 0++ 0 0 0
------- ------- ------- ------ ------
Total distributions to
shareholders (0.30) (0.60) (0.61) (0.65) (0.63)
------- ------- ------- ------ ------
Net asset value, end of
period $ 10.08 $ 10.68 $ 11.26 $10.89 $10.42
------- ------- ------- ------ ------
Total return (2.83%) 0.09% 9.22% 11.04% 5.54%
Ratios and supplemental
data
Net assets, end of
period (thousands) $57,636 $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 5.91%+ 5.38% 5.47% 6.08% 6.27%+
Portfolio turnover rate 22% 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.
+ Annualized.
++ Represents an amount less than $0.01 per share.
# The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
17
<PAGE>
EVERGREEN
Florida Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended
February Year Ended August 31,
29, 2000 ----------------------------------------------------- Year Ended
(Unaudited) 1999 1998 1997 1996 1995 (a) (b) April 30, 1995 (a)
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $ 9.36 $ 10.15 $ 9.98 $ 9.70 $ 9.74 $ 9.61 $ 9.52
-------- -------- -------- -------- -------- -------- --------
Income from investment
operations
Net investment income 0.23 0.46 0.48 0.51 0.54 0.19 0.54
Net realized and
unrealized gains or
losses on securities (0.33) (0.56) 0.38 0.35 (0.04) 0.22 0.11
-------- -------- -------- -------- -------- -------- --------
Total from investment
operations (0.10) (0.10) 0.86 0.86 0.50 0.41 0.65
-------- -------- -------- -------- -------- -------- --------
Less distributions to
shareholders from
Net investment income (0.23) (0.46) (0.48) (0.52) (0.54) (0.22) (0.54)
Net realized gains (0.03) (0.23) (0.21) (0.06) 0 (0.06) (0.02)
-------- -------- -------- -------- -------- -------- --------
Total distributions to
shareholders (0.26) (0.69) (0.69) (0.58) (0.54) (0.28) (0.56)
-------- -------- -------- -------- -------- -------- --------
Net asset value, end of
period $ 9.00 $ 9.36 $ 10.15 $ 9.98 $ 9.70 $ 9.74 $ 9.61
-------- -------- -------- -------- -------- -------- --------
Total return* (1.08%) (1.07%) 8.96% 9.06% 5.15% 4.20% 7.05%
Ratios and supplemental
data
Net assets, end of
period (thousands) $118,481 $137,101 $164,255 $105,673 $115,723 $136,449 $168,542
Ratios to average net
assets
Expenses# 0.41%+ 0.34% 0.46% 0.74% 0.63% 0.82%+ 0.61%
Net investment income 5.08%+ 4.71% 4.79% 5.22% 5.46% 4.89%+ 5.73%
Portfolio turnover rate 36% 57% 64% 41% 30% 29% 53%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
February Year Ended August 31,
29, 2000 ---------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995 (c)
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $ 9.36 $ 10.15 $ 9.98 $ 9.70 $ 9.74 $ 9.67
------- ------- ------- ------- ------- -------
Income from investment
operations
Net investment income 0.19 0.37 0.38 0.42 0.44 0.07
Net realized and
unrealized gains or
losses on securities (0.33) (0.56) 0.39 0.35 (0.04) 0.10
------- ------- ------- ------- ------- -------
Total from investment
operations (0.14) (0.19) 0.77 0.77 0.40 0.17
------- ------- ------- ------- ------- -------
Less distributions to
shareholders from
Net investment income (0.19) (0.37) (0.39) (0.43) (0.44) (0.07)
Net realized gains (0.03) (0.23) (0.21) (0.06) 0 (0.03)
------- ------- ------- ------- ------- -------
Total distributions to
shareholders (0.22) (0.60) (0.60) (0.49) (0.44) (0.10)
------- ------- ------- ------- ------- -------
Net asset value, end of
period $ 9.00 $ 9.36 $ 10.15 $ 9.98 $ 9.70 $ 9.74
------- ------- ------- ------- ------- -------
Total return* (1.54%) (1.97%) 7.97% 8.06% 4.17% 1.49%
Ratios and supplemental
data
Net assets, end of
period (thousands) $49,278 $59,783 $66,142 $31,281 $28,849 $27,351
Ratios to average net
assets
Expenses# 1.32%+ 1.26% 1.36% 1.66% 1.56% 1.44%+
Net investment income 4.16%+ 3.79% 3.88% 4.29% 4.52% 3.22%+
Portfolio turnover rate 36% 57% 64% 41% 30% 29%
</TABLE>
(a) On June 30, 1995, ABT Florida Tax-Free Fund sold substantially all of its
net assets to Evergreen Florida Municipal Bond Fund. As ABT Florida Tax-
Free Fund is the accounting survivor, its basis of accounting for assets
and liabilities and its operating results for periods prior to June 30,
1995 have been carried forward in these financial highlights.
(b) For the four months ended August 31, 1995. The Fund changed its fiscal year
end from April 30 to August 31, effective August 31, 1995.
(c) For the period from June 30, 1995 (commencement of class operations) to Au-
gust 31, 1995.
* Excluding applicable sales charges.
+ Annualized.
# The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
18
<PAGE>
EVERGREEN
Florida Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 29, 2000 -------------------------
(Unaudited) 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 0.19 0.37 0.23
Net realized and unrealized
gains or losses on securities (0.33) (0.56) 0.09
------ ---------- ----------
Total from investment operations (0.14) (0.19) 0.32
------ ---------- ----------
Less distributions to
shareholders from
Net investment income (0.19) (0.37) (0.23)
Net realized gains (0.03) (0.23) 0
------ ---------- ----------
Total distributions to
shareholders (0.22) (0.60) (0.23)
------ ---------- ----------
Net asset value, end of period $ 9.00 $ 9.36 $ 10.15
------ ---------- ----------
Total return* (1.54%) (1.97%) 3.25%
Ratios and supplemental data
Net assets, end of period
(thousands) $7,307 $ 9,111 $ 8,963
Ratios to average net assets
Expenses# 1.32%+ 1.26% 1.29%+
Net investment income 4.16%+ 3.79% 3.86%+
Portfolio turnover rate 36% 57% 64%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 29, 2000 -----------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995 (b)
<S> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value,
beginning of period $ 9.36 $ 10.15 $ 9.98 $ 9.70 $ 9.74 $ 9.67
-------- -------- -------- ------- ------- ------
Income from investment
operations
Net investment income 0.23 0.47 0.48 0.52 0.53 0.09
Net realized and
unrealized gains or
losses on securities (0.33) (0.56) 0.39 0.35 (0.03) 0.10
-------- -------- -------- ------- ------- ------
Total from investment
operations (0.10) (0.09) 0.87 0.87 0.50 0.19
-------- -------- -------- ------- ------- ------
Less distributions to
shareholders from
Net investment income (0.23) (0.47) (0.49) (0.53) (0.54) (0.09)
Net realized gains (0.03) (0.23) (0.21) (0.06) 0 (0.03)
-------- -------- -------- ------- ------- ------
Total distributions to
shareholders (0.26) (0.70) (0.70) (0.59) (0.54) (0.12)
-------- -------- -------- ------- ------- ------
Net asset value, end of
period $ 9.00 $ 9.36 $ 10.15 $ 9.98 $ 9.70 $ 9.74
-------- -------- -------- ------- ------- ------
Total return (1.04%) (0.99%) 9.05% 9.14% 5.22% 1.67%
Ratios and supplemental
data
Net assets, end of
period (thousands) $364,885 $407,474 $418,847 $24,850 $12,259 $3,602
Ratios to average net
assets
Expenses# 0.32%+ 0.26% 0.33% 0.67% 0.57% 0.59%+
Net investment income 5.16%+ 4.79% 4.85% 5.27% 5.55% 4.93%+
Portfolio turnover rate 36% 57% 64% 41% 30% 29%
</TABLE>
(a) For the period from January 26, 1998 (commencement of class operations) to
August 31, 1998.
(b) For the period from June 30, 1995 (commencement of class operations) to Au-
gust 31, 1995.
* Excluding applicable sales charges.
+ Annualized.
# The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
19
<PAGE>
EVERGREEN
Georgia Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 29, 2000 ----------------------------------------- Year Ended
(Unaudited) 1999 1998 1997 1996 1995 (a) December 31, 1994
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $ 9.78 $10.35 $ 9.90 $ 9.57 $ 9.47 $ 8.74 $10.19
------ ------ ------ ------ ------ ------ ------
Income from investment
operations
Net investment income 0.24 0.49 0.49 0.49 0.48 0.33 0.48
Net realized and
unrealized gains or
losses on securities (0.32) (0.53) 0.45 0.33 0.10 0.73 (1.45)
------ ------ ------ ------ ------ ------ ------
Total from investment
operations (0.08) (0.04) 0.94 0.82 0.58 1.06 (0.97)
------ ------ ------ ------ ------ ------ ------
Less distributions to
shareholders from
Net investment income (0.24) (0.49) (0.49) (0.49) (0.48) (0.33) (0.48)
Net realized gains 0 (0.04) 0 0 0 0 0
------ ------ ------ ------ ------ ------ ------
Total distributions to
shareholders (0.24) (0.53) (0.49) (0.49) (0.48) (0.33) (0.48)
------ ------ ------ ------ ------ ------ ------
Net asset value, end of
period $ 9.46 $ 9.78 $10.35 $ 9.90 $ 9.57 $ 9.47 $ 8.74
------ ------ ------ ------ ------ ------ ------
Total return* (0.79%) (0.50%) 9.67% 8.73% 6.22% 12.28% (9.64%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $5,321 $4,358 $3,932 $2,201 $1,954 $2,098 $1,387
Ratios to average net
assets
Expenses# 0.58%+ 0.51% 0.57% 0.94% 0.88% 0.71%+ 0.53%
Net investment income 5.16%+ 4.76% 4.81% 5.00% 4.96% 5.39%+ 5.26%
Portfolio turnover rate 17% 34% 50% 32% 21% 91% 147%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 29, 2000 -------------------------------------------- Year Ended
(Unaudited) 1999 1998 1997 1996 1995 (a) December 31, 1994
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning
of period $ 9.78 $ 10.35 $ 9.90 $ 9.57 $ 9.47 $ 8.74 $ 10.19
------- ------- ------- ------- ------ ------ -------
Income from investment
operations
Net investment income 0.21 0.41 0.41 0.41 0.41 0.28 0.43
Net realized and
unrealized gains or
losses on securities (0.32) (0.53) 0.45 0.33 0.10 0.73 (1.45)
------- ------- ------- ------- ------ ------ -------
Total from investment
operations (0.11) (0.12) 0.86 0.74 0.51 1.01 (1.02)
------- ------- ------- ------- ------ ------ -------
Less distributions to
shareholders from
Net investment income (0.21) (0.41) (0.41) (0.41) (0.41) (0.28) (0.43)
Net realized gains 0 (0.04) 0 0 0 0 0
------- ------- ------- ------- ------ ------ -------
Total distributions to
shareholders (0.21) (0.45) (0.41) (0.41) (0.41) (0.28) (0.43)
------- ------- ------- ------- ------ ------ -------
Net asset value, end of
period $ 9.46 $ 9.78 $ 10.35 $ 9.90 $ 9.57 $ 9.47 $ 8.74
------- ------- ------- ------- ------ ------ -------
Total return* (1.17%) (1.24%) 8.86% 7.93% 5.44% 11.72% (10.15%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $12,847 $14,244 $12,559 $10,870 $9,271 $7,538 $ 6,912
Ratios to average net
assets
Expenses# 1.32%+ 1.26% 1.34% 1.69% 1.63% 1.46%+ 1.13%
Net investment income 4.39%+ 4.01% 4.06% 4.25% 4.21% 4.64%+ 4.66%
Portfolio turnover rate 17% 34% 50% 32% 21% 91% 147%
</TABLE>
(a) For the eight months ended August 31, 1995. The Fund changed its fiscal
year end from December 31 to August 31, effective August 31, 1995.
* Excluding applicable sales charges.
+ Annualized.
# The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
20
<PAGE>
EVERGREEN
Georgia Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 29, 2000 ------------------------------------------- Period Ended
(Unaudited) 1999 1998 1997 1996 1995 (a) December 31, 1994 (b)
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value,
beginning
of period $ 9.78 $ 10.35 $ 9.90 $ 9.57 $ 9.47 $ 8.74 $ 9.83
------- ------- ------- ------ ------ ------ ------
Income from investment
operations
Net investment income 0.26 0.51 0.51 0.51 0.50 0.35 0.42
Net realized and
unrealized gains or
losses on securities (0.32) (0.53) 0.45 0.33 0.10 0.73 (1.09)
------- ------- ------- ------ ------ ------ ------
Total from investment
operations (0.06) (0.02) 0.96 0.84 0.60 1.08 (0.67)
------- ------- ------- ------ ------ ------ ------
Less distributions to
shareholders from
Net investment income (0.26) (0.51) (0.51) (0.51) (0.50) (0.35) (0.42)
Net realized gains 0 (0.04) 0 0 0 0 0
------- ------- ------- ------ ------ ------ ------
Total distributions to
shareholders (0.26) (0.55) (0.51) (0.51) (0.50) (0.35) (0.42)
------- ------- ------- ------ ------ ------ ------
Net asset value, end of
period $ 9.46 $ 9.78 $ 10.35 $ 9.90 $ 9.57 $ 9.47 $ 8.74
------- ------- ------- ------ ------ ------ ------
Total return (0.67%) (0.25%) 9.94% 9.00% 6.48% 12.47% (6.86%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $66,193 $71,992 $67,630 $1,180 $1,620 $1,339 $ 284
Ratios to average net
assets
Expenses# 0.32%+ 0.26% 0.24% 0.69% 0.63% 0.46%+ 0.31%+
Net investment income 5.39%+ 5.02% 5.09% 5.25% 5.21% 5.64%+ 5.68%+
Portfolio turnover rate 17% 34% 50% 32% 21% 91% 147%
</TABLE>
(a) For the eight months ended August 31, 1995. The Fund changed its fiscal
year end from December 31 to August 31, effective August 31, 1995.
(b) For the period from February 28, 1994, (commencement of class operations)
to December 31, 1994.
+ Annualized.
# The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
21
<PAGE>
EVERGREEN
Maryland Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31, Year Ended September 30,
February 29, 2000 --------------------------- --------------------------------------
(Unaudited) 1999 1998 (a) (b) 1997 (a) 1996 (a) 1995 (a) 1994 (a)
<S> <C> <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 $ 11.24
------- ---------- ---------- ------- ------- ------- -------
Income from investment
operations
Net investment income 0.24 0.47 0.36 0.37 0.38 0.40 0.45
Net realized and
unrealized gains or
losses on securities (0.30) (0.49) 0.25 0.35 (0.13) 0.54 (0.97)
------- ---------- ---------- ------- ------- ------- -------
Total from investment
operations (0.06) (0.02) 0.61 0.72 0.25 0.94 (0.52)
------- ---------- ---------- ------- ------- ------- -------
Less distributions to
shareholders from
Net investment income (0.24) (0.47) (0.36) (0.37) (0.38) (0.40) (0.45)
Net realized gains 0 (0.09) 0 0 0 (0.02) (0.10)
------- ---------- ---------- ------- ------- ------- -------
Total distributions to
shareholders (0.24) (0.56) (0.36) (0.37) (0.38) (0.42) (0.55)
------- ---------- ---------- ------- ------- ------- -------
Net asset value, end of
period $ 10.28 $ 10.58 $ 11.16 $ 10.91 $ 10.56 $ 10.69 $ 10.17
------- ---------- ---------- ------- ------- ------- -------
Total return* (0.58%) (0.29%) 5.70% 6.92% 2.36% 9.81% (4.74%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $20,624 $23,114 $24,754 $27,786 $31,284 $32,172 $34,580
Ratios to average net
assets
Expenses# 0.81%+ 0.79% 1.52%+ 1.69% 1.43% 1.24% 1.17%
Net investment income 4.69%+ 4.27% 3.56%+ 3.45% 3.57% 4.24% 4.22%
Portfolio turnover rate 24% 40% 37% 13% 138% 21% 27%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 29, 2000 -------------------------
(Unaudited) 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 0.20 0.39 0.16
Net realized and unrealized
gains or losses on securities (0.30) (0.49) 0.17
------ ---------- ----------
Total from investment operations (0.10) (0.10) 0.33
------ ---------- ----------
Less distributions to
shareholders from
Net investment income (0.20) (0.39) (0.16)
Net realized gains 0 (0.09) 0
------ ---------- ----------
Total distributions to
shareholders (0.20) (0.48) (0.16)
------ ---------- ----------
Net asset value, end of period $10.28 $ 10.58 $ 11.16
------ ---------- ----------
Total return* (0.95%) (1.04%) 2.99%
Ratios and supplemental data
Net assets, end of period
(thousands) $3,566 $ 3,440 $ 990
Ratios to average net assets
Expenses# 1.56%+ 1.55% 1.49%+
Net investment income 3.93%+ 3.49% 3.41%+
Portfolio turnover rate 24% 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.
+ Annualized.
# The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
22
<PAGE>
EVERGREEN
Maryland Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended
February 29, 2000 Period Ended
(Unaudited) August 31, 1999 (c)
<S> <C> <C>
CLASS C SHARES
Net asset value, beginning of period $10.58 $11.11
------ ------
Income from investment operations
Net investment income 0.20 0.26
Net realized and unrealized gains or
losses on securities (0.30) (0.53)
------ ------
Total from investment operations (0.10) (0.27)
------ ------
Less distributions to shareholders from
Net investment income (0.20) (0.26)
Net realized gains 0 0
------ ------
Total distributions to shareholders (0.20) (0.26)
------ ------
Net asset value, end of period $10.28 $10.58
------ ------
Total return* (0.95%) (2.48%)
Ratios and supplemental data
Net assets, end of period (thousands) $ 29 $ 30
Ratios to average net assets
Expenses# 1.56%+ 1.55%+
Net investment income 3.93%+ 3.51%+
Portfolio turnover rate 24% 40%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31, Year Ended September 30,
February 29, 2000 ---------------------------- -----------------------------------
(Unaudited) 1999 1998 (a) (b) 1997 (a) 1996 (a) 1995 (a) 1994 (a)
<S> <C> <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 $ 11.24
-------- ----------- ---------- ------ ------ ------ -------
Income from investment
operations
Net investment income 0.26 0.50 0.39 0.40 0.41 0.42 0.48
Net realized and
unrealized gains or
losses on securities (0.30) (0.49) 0.25 0.35 (0.13) 0.54 (0.97)
-------- ----------- ---------- ------ ------ ------ -------
Total from investment
operations (0.04) 0.01 0.64 0.75 0.28 0.96 (0.49)
-------- ----------- ---------- ------ ------ ------ -------
Less distributions to
shareholders from
Net investment income (0.26) (0.50) (0.39) (0.40) (0.41) (0.42) (0.48)
Net realized gains 0 (0.09) 0 0 0 (0.02) (0.10)
-------- ----------- ---------- ------ ------ ------ -------
Total distributions to
shareholders (0.26) (0.59) (0.39) (0.40) (0.41) (0.44) (0.58)
-------- ----------- ---------- ------ ------ ------ -------
Net asset value, end of
period $ 10.28 $ 10.58 $ 11.16 $10.91 $10.56 $10.69 $ 10.17
-------- ----------- ---------- ------ ------ ------ -------
Total return (0.45%) (0.04%) 5.94% 7.19% 2.61% 10.09% (4.50%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $ 16,005 $ 13,190 $ 5,229 $5,683 $8,889 $9,447 $11,301
Ratios to average net
assets
Expenses# 0.56%+ 0.55% 1.25%+ 1.44% 1.18% 0.99% 0.92%
Net investment income 4.96%+ 4.55% 3.83%+ 3.70% 3.82% 4.49% 4.46%
Portfolio turnover rate 24% 40% 37% 13% 138% 21% 27%
</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 December 23, 1998 (commencement of class operations) to
August 31, 1999.
* Excluding applicable sales charges.
+ Annualized.
# The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
23
<PAGE>
EVERGREEN
North Carolina Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 29, 2000 ------------------------------------------- Year Ended
(Unaudited) 1999 1998 1997 1996 1995 (a) December 31, 1994
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $ 10.19 $ 10.84 $ 10.37 $ 9.98 $ 9.95 $ 9.16 $10.61
------- ------- ------- ------ ------ ------ ------
Income from investment
operations
Net investment income 0.25 0.50 0.51 0.49 0.49 0.33 0.49
Net realized and
unrealized gains or
losses on securities (0.39) (0.59) 0.47 0.40 0.02 0.79 (1.45)
------- ------- ------- ------ ------ ------ ------
Total from investment
operations (0.14) (0.09) 0.98 0.89 0.51 1.12 (0.96)
------- ------- ------- ------ ------ ------ ------
Less distributions to
shareholders from
Net investment income (0.25) (0.50) (0.51) (0.50) (0.48) (0.33) (0.49)
Net realized gains (0.06) (0.06) 0 0 0 0 0
------- ------- ------- ------ ------ ------ ------
Total distributions to
shareholders (0.31) (0.56) (0.51) (0.50) (0.48) (0.33) (0.49)
------- ------- ------- ------ ------ ------ ------
Net asset value, end of
period $ 9.74 $ 10.19 $ 10.84 $10.37 $ 9.98 $ 9.95 $ 9.16
------- ------- ------- ------ ------ ------ ------
Total return* (1.39%) (0.92%) 9.66% 9.11% 5.21% 12.34% (9.12%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $22,202 $17,990 $15,768 $8,115 $7,989 $8,279 $7,979
Ratios to average net
assets
Expenses# 0.56%+ 0.49% 0.56% 1.11% 1.08% 0.92%+ 0.79%
Net investment income 5.07%+ 4.72% 4.81% 4.77% 4.81% 5.09%+ 5.11%
Portfolio turnover rate 8% 41% 53% 50% 86% 117% 126%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 29, 2000 --------------------------------------------- Year Ended
(Unaudited) 1999 1998 1997 1996 1995 (a) December 31, 1994
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $ 10.19 $ 10.84 $ 10.37 $ 9.98 $ 9.95 $ 9.16 $ 10.61
------- ------- ------- ------- ------- ------- -------
Income from investment
operations
Net investment income 0.21 0.42 0.43 0.41 0.42 0.28 0.44
Net realized and
unrealized gains or
losses on securities (0.39) (0.59) 0.47 0.40 0.02 0.79 (1.45)
------- ------- ------- ------- ------- ------- -------
Total from investment
operations (0.18) (0.17) 0.90 0.81 0.44 1.07 (1.01)
------- ------- ------- ------- ------- ------- -------
Less distributions to
shareholders from
Net investment income (0.21) (0.42) (0.43) (0.42) (0.41) (0.28) (0.44)
Net realized gains (0.06) (0.06) 0 0 0 0 0
------- ------- ------- ------- ------- ------- -------
Total distributions to
shareholders (0.27) (0.48) (0.43) (0.42) (0.41) (0.28) (0.44)
------- ------- ------- ------- ------- ------- -------
Net asset value, end of
period $ 9.74 $ 10.19 $ 10.84 $ 10.37 $ 9.98 $ 9.95 $ 9.16
------- ------- ------- ------- ------- ------- -------
Total return* (1.76%) (1.66%) 8.85% 8.30% 4.42% 11.78% (9.64%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $37,748 $46,042 $49,320 $48,198 $49,382 $49,040 $44,616
Ratios to average net
assets
Expenses# 1.31%+ 1.23% 1.33% 1.86% 1.83% 1.67%+ 1.37%
Net investment income 4.30%+ 3.96% 4.07% 4.02% 4.06% 4.34%+ 4.53%
Portfolio turnover rate 8% 41% 53% 50% 86% 117% 126%
</TABLE>
(a) For the eight months ended August 31, 1995. The Fund changed its fiscal
year end from December 31 to August 31, effective August 31, 1995.
* Excluding applicable sales charges.
+ Annualized.
# The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
24
<PAGE>
EVERGREEN
North Carolina Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 29, 2000 --------------------------------------------- Period Ended
(Unaudited) 1999 1998 1997 1996 1995 (a) December 31, 1994 (b)
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value,
beginning of period $ 10.19 $ 10.84 $ 10.37 $ 9.98 $ 9.95 $ 9.16 $10.31
-------- -------- -------- ------ ------ ------ ------
Income from investment
operations
Net investment income 0.26 0.52 0.54 0.51 0.51 0.35 0.43
Net realized and
unrealized gains or
losses on securities (0.39) (0.58) 0.47 0.41 0.03 0.79 (1.15)
-------- -------- -------- ------ ------ ------ ------
Total from investment
operations (0.13) (0.06) 1.01 0.92 0.54 1.14 (0.72)
-------- -------- -------- ------ ------ ------ ------
Less distributions to
shareholders from
Net investment income (0.26) (0.53) (0.54) (0.53) (0.51) (0.35) (0.43)
Net realized gains (0.06) (0.06) 0 0 0 0 0
-------- -------- -------- ------ ------ ------ ------
Total distributions to
shareholders (0.32) (0.59) (0.54) (0.53) (0.51) (0.35) (0.43)
-------- -------- -------- ------ ------ ------ ------
Net asset value, end of
period $ 9.74 $ 10.19 $ 10.84 $10.37 $ 9.98 $ 9.95 $ 9.16
-------- -------- -------- ------ ------ ------ ------
Total return (1.27%) (0.68%) 9.93% 9.39% 5.47% 12.52% (7.01%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $222,943 $247,475 $256,231 $4,042 $3,771 $1,006 $ 642
Ratios to average net
assets
Expenses# 0.31%+ 0.23% 0.20% 0.86% 0.84% 0.67%+ 0.59%+
Net investment income 5.30%+ 4.96% 5.04% 5.02% 5.05% 5.34%+ 5.58%+
Portfolio turnover rate 8% 41% 53% 50% 86% 117% 126%
</TABLE>
(a) For the eight months ended August 31, 1995. The Fund changed its fiscal
year end from December 31 to August 31, effective August 31, 1995.
(b) For the period from February 28, 1994 (commencement of class operations) to
December 31, 1994.
+ Annualized.
# The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
25
<PAGE>
EVERGREEN
South Carolina Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 29, 2000 ----------------------------------------- Period Ended
(Unaudited) 1999 1998 1997 1996 1995 (a) December 31, 1994 (b)
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $ 9.84 $10.44 $10.08 $ 9.69 $ 9.59 $ 8.62 $10.00
------ ------ ------ ------ ------ ------ ------
Income from investment
operations
Net investment income 0.23 0.46 0.46 0.48 0.49 0.34 0.46
Net realized and
unrealized gains or
losses on securities (0.30) (0.50) 0.39 0.40 0.10 0.97 (1.38)
------ ------ ------ ------ ------ ------ ------
Total from investment
operations (0.07) (0.04) 0.85 0.88 0.59 1.31 (0.92)
------ ------ ------ ------ ------ ------ ------
Less distributions to
shareholders from
Net investment income (0.23) (0.46) (0.46) (0.48) (0.49) (0.34) (0.46)
Net realized gains (0.07) (0.10) (0.03) (0.01) 0 0 0
------ ------ ------ ------ ------ ------ ------
Total distributions to
shareholders (0.30) (0.56) (0.49) (0.49) (0.49) (0.34) (0.46)
------ ------ ------ ------ ------ ------ ------
Net asset value, end of
period $ 9.47 $ 9.84 $10.44 $10.08 $ 9.69 $ 9.59 $ 8.62
------ ------ ------ ------ ------ ------ ------
Total return* (0.70%) (0.56%) 8.60% 9.33% 6.23% 15.35% (9.32%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $2,446 $2,324 $1,744 $1,025 $ 841 $ 610 $ 312
Ratios to average net
assets
Expenses# 0.73%+ 0.70% 0.77% 0.98% 0.86% 0.53%+ 0.25%+
Net investment income 4.88%+ 4.43% 4.56% 4.87% 4.98% 5.41%+ 5.57%+
Portfolio turnover rate 23% 35% 31% 62% 37% 66% 23%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 29, 2000 ----------------------------------------- Period Ended
(Unaudited) 1999 1998 1997 1996 1995 (a) December 31, 1994 (b)
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $ 9.84 $10.44 $10.08 $ 9.69 $ 9.59 $ 8.62 $10.00
------ ------ ------ ------ ------ ------ ------
Income from investment
operations
Net investment income 0.20 0.38 0.38 0.41 0.41 0.29 0.41
Net realized and
unrealized gains or
losses on securities (0.30) (0.50) 0.39 0.40 0.10 0.97 (1.38)
------ ------ ------ ------ ------ ------ ------
Total from investment
operations (0.10) (0.12) 0.77 0.81 0.51 1.26 (0.97)
------ ------ ------ ------ ------ ------ ------
Less distributions to
shareholders from
Net investment income (0.20) (0.38) (0.38) (0.41) (0.41) (0.29) (0.41)
Net realized gains (0.07) (0.10) (0.03) (0.01) 0 0 0
------ ------ ------ ------ ------ ------ ------
Total distributions to
shareholders (0.27) (0.48) (0.41) (0.42) (0.41) (0.29) (0.41)
------ ------ ------ ------ ------ ------ ------
Net asset value, end of
period $ 9.47 $ 9.84 $10.44 $10.08 $ 9.69 $ 9.59 $ 8.62
------ ------ ------ ------ ------ ------ ------
Total return* (1.08%) (1.30%) 7.79% 8.52% 5.43% 14.77% (9.83%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $4,682 $5,393 $4,542 $4,734 $4,282 $3,542 $2,456
Ratios to average net
assets
Expenses# 1.47%+ 1.45% 1.53% 1.73% 1.61% 1.28%+ 0.87%+
Net investment income 4.11%+ 3.68% 3.76% 4.13% 4.23% 4.66%+ 4.88%+
Portfolio turnover rate 23% 35% 31% 62% 37% 66% 23%
</TABLE>
(a) For the eight months ended August 31, 1995. The Fund changed its fiscal
year end from December 31 to August 31, effective August 31, 1995.
(b) For the period from January 3, 1994 (commencement of class operations) to
December 31, 1994.
* Excluding applicable sales charges.
+ Annualized.
# The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
26
<PAGE>
EVERGREEN
South Carolina Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 29, 2000 ------------------------------------------- Period Ended
(Unaudited) 1999 1998 1997 1996 1995 (a) December 31, 1994 (b)
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value,
beginning of period $ 9.84 $ 10.44 $ 10.08 $ 9.69 $ 9.59 $ 8.62 $ 9.74
------- ------- ------- ------ ------ ------ ------
Income from investment
operations
Net investment income 0.25 0.48 0.48 0.51 0.51 0.35 0.43
Net realized and
unrealized gains or
losses on securities (0.30) (0.50) 0.40 0.40 0.10 0.97 (1.12)
------- ------- ------- ------ ------ ------ ------
Total from investment
operations (0.05) (0.02) 0.88 0.91 0.61 1.32 (0.69)
------- ------- ------- ------ ------ ------ ------
Less distributions to
shareholders from
Net investment income (0.25) (0.48) (0.49) (0.51) (0.51) (0.35) (0.43)
Net realized gains (0.07) (0.10) (0.03) (0.01) 0 0 0
------- ------- ------- ------ ------ ------ ------
Total distributions to
shareholders (0.32) (0.58) (0.52) (0.52) (0.51) (0.35) (0.43)
------- ------- ------- ------ ------ ------ ------
Net asset value, end of
period $ 9.47 $ 9.84 $ 10.44 $10.08 $ 9.69 $ 9.59 $ 8.62
------- ------- ------- ------ ------ ------ ------
Total return (0.58%) (0.31%) 8.87% 9.60% 6.49% 15.54% (7.12%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $50,068 $61,314 $66,303 $7,012 $4,555 $1,673 $ 92
Ratios to average net
assets
Expenses# 0.47%+ 0.45% 0.46% 0.73% 0.62% 0.28%+ 0.00%+
Net investment income 5.10%+ 4.69% 4.71% 5.12% 5.22% 5.66%+ 5.92%+
Portfolio turnover rate 23% 35% 31% 62% 37% 66% 23%
</TABLE>
(a) For the eight months ended August 31, 1995. The Fund changed its fiscal
year end from December 31 to August 31, effective August 31, 1995.
(b) For the period from February 28, 1994 (commencement of class operations) to
December 31, 1994.
+ Annualized.
# The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
27
<PAGE>
EVERGREEN
Virginia Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 29, 2000 ------------------------------------------ Year Ended
(Unaudited) 1999 1998 1997 1996 1995 (a) December 31, 1994
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $ 9.93 $ 10.46 $ 10.05 $ 9.68 $ 9.67 $ 8.85 $10.19
------- ------- ------- ------ ------ ------ ------
Income from investment
operations
Net investment income 0.24 0.49 0.48 0.50 0.48 0.33 0.47
Net realized and
unrealized gains or
losses on securities (0.27) (0.45) 0.42 0.37 0.01 0.82 (1.34)
------- ------- ------- ------ ------ ------ ------
Total from investment
operations (0.03) 0.04 0.90 0.87 0.49 1.15 (0.87)
------- ------- ------- ------ ------ ------ ------
Less distributions to
shareholders from
Net investment income (0.24) (0.49) (0.49) (0.50) (0.48) (0.33) (0.47)
Net realized gains (0.02) (0.08) 0 0 0 0 0
------- ------- ------- ------ ------ ------ ------
Total distributions to
shareholders (0.26) (0.57) (0.49) (0.50) (0.48) (0.33) (0.47)
------- ------- ------- ------ ------ ------ ------
Net asset value, end of
period $ 9.64 $ 9.93 $ 10.46 $10.05 $ 9.68 $ 9.67 $ 8.85
------- ------- ------- ------ ------ ------ ------
Total return* (0.31%) 0.23% 9.12% 9.05% 5.12% 13.09% (8.60%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $45,488 $50,341 $54,298 $2,934 $2,892 $1,983 $1,606
Ratios to average net
assets
Expenses# 0.60%+ 0.51% 0.50% 1.03% 0.93% 0.72%+ 0.53%
Net investment income 4.97%+ 4.70% 4.71% 4.95% 4.83% 5.17%+ 5.11%
Portfolio turnover rate 26% 31% 46% 72% 68% 87% 59%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 29, 2000 ------------------------------------------ Year Ended
(Unaudited) 1999 1998 1997 1996 1995 (a) December 31, 1994
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $ 9.93 $ 10.46 $10.05 $ 9.68 $ 9.67 $ 8.85 $10.19
------- ------- ------ ------ ------ ------ ------
Income from investment
operations
Net investment income 0.20 0.41 0.41 0.41 0.41 0.28 0.42
Net realized and
unrealized gains or
losses on securities (0.27) (0.45) 0.41 0.37 0.01 0.82 (1.34)
------- ------- ------ ------ ------ ------ ------
Total from investment
operations (0.07) (0.04) 0.82 0.78 0.42 1.10 (0.92)
------- ------- ------ ------ ------ ------ ------
Less distributions to
shareholders from
Net investment income (0.20) (0.41) (0.41) (0.41) (0.41) (0.28) (0.42)
Net realized gains (0.02) (0.08) 0 0 0 0 0
------- ------- ------ ------ ------ ------ ------
Total distributions to
shareholders (0.22) (0.49) (0.41) (0.41) (0.41) (0.28) (0.42)
------- ------- ------ ------ ------ ------ ------
Net asset value, end of
period $ 9.64 $ 9.93 $10.46 $10.05 $ 9.68 $ 9.67 $ 8.85
------- ------- ------ ------ ------ ------ ------
Total return* (0.68%) (0.52%) 8.31% 8.24% 4.34% 12.53% (9.13%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $14,833 $15,403 $8,935 $6,695 $5,963 $5,083 $3,817
Ratios to average net
assets
Expenses# 1.35%+ 1.26% 1.35% 1.79% 1.68% 1.47%+ 1.12%
Net investment income 4.21%+ 3.93% 3.99% 4.21% 4.09% 4.42%+ 4.54%
Portfolio turnover rate 26% 31% 46% 72% 68% 87% 59%
</TABLE>
(a) For the eight months ended August 31, 1995. The Fund changed its fiscal
year end from December 31 to August 31, effective August 31, 1995.
* Excluding applicable sales charges.
+ Annualized.
# The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
28
<PAGE>
EVERGREEN
Virginia Municipal Bond Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 29, 2000 --------------------------------------------- Period Ended
(Unaudited) 1999 1998 1997 1996 1995 (a) December 31, 1994 (b)
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value,
beginning of period $ 9.93 $ 10.46 $ 10.05 $ 9.68 $ 9.67 $ 8.85 $9.83
-------- -------- -------- ------ ------ ------ -----
Income from investment
operations
Net investment income 0.25 0.51++ 0.51 0.51 0.50 0.34 0.41
Net realized and
unrealized gains or
losses on securities (0.27) (0.45) 0.41 0.37 0.01 0.82 (0.98)
-------- -------- -------- ------ ------ ------ -----
Total from investment
operations (0.02) 0.06 0.92 0.88 0.51 1.16 (0.57)
-------- -------- -------- ------ ------ ------ -----
Less distributions to
shareholders from
Net investment income (0.25) (0.51) (0.51) (0.51) (0.50) (0.34) (0.41)
Net realized gains (0.02) (0.08) 0 0 0 0 0
-------- -------- -------- ------ ------ ------ -----
Total distributions to
shareholders (0.27) (0.59) (0.51) (0.51) (0.50) (0.34) (0.41)
-------- -------- -------- ------ ------ ------ -----
Net asset value, end of
period $ 9.64 $ 9.93 $ 10.46 $10.05 $ 9.68 $ 9.67 $8.85
-------- -------- -------- ------ ------ ------ -----
Total return (0.19%) 0.48% 9.39% 9.32% 5.38% 13.28% (5.80%)
Ratios and supplemental
data
Net assets, end of
period (thousands) $106,090 $115,720 $105,931 $6,195 $4,266 $ 965 $ 344
Ratios to average net
assets
Expenses# 0.35%+ 0.26% 0.25% 0.79% 0.70% 0.47%+ 0.28%+
Net investment income 5.22%+ 4.95% 4.98% 5.27% 5.05% 5.42%+ 5.54%+
Portfolio turnover rate 26% 31% 46% 72% 68% 87% 59%
</TABLE>
(a) For the eight months ended August 31, 1995. The Fund changed its fiscal
year end from December 31 to August 31, effective August 31, 1995.
(b) For the period from February 28, 1994 (commencement of class operations) to
December 31, 1994.
+ Annualized.
++ Calculation based on average shares outstanding.
# The ratio of expenses to average net assets excludes expense reductions and
includes fee waivers.
See Combined Notes to Financial Statements.
29
<PAGE>
EVERGREEN
Florida High Income Municipal Bond Fund
Schedule of Investments
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - 95.8%
California - 2.0%
Heritage Pines, CA CDA RB:
$ 2,720,000 Ser. A,
6.10%, 5/1/2020.................................... $ 2,454,528
5,695,000 Ser. B,
5.50%, 5/1/2005.................................... 5,457,234
------------
7,911,762
------------
Florida - 84.6%
Arbor Greene, FL CDD Spl. Assmt. RB:
1,295,000 5.75%, 5/1/2006.................................... 1,248,665
500,000 6.30%, 5/1/2019.................................... 461,330
730,000 7.60%, 5/1/2018.................................... 760,346
Bayside, FL CDD Capital Impt. RB:
1,565,000 Ser. A,
5.95%, 5/1/2008.................................... 1,494,998
Ser. B:
1,430,000 6.05%, 5/1/2008.................................... 1,366,279
1,625,000 6.375%, 5/1/2018................................... 1,505,871
Bobcat Trail, FL CDD RB:
Ser. A:
1,480,000 6.60%, 5/1/2021.................................... 1,331,201
2,470,000 7.50%, 5/1/2019.................................... 2,478,670
Ser. B:
1,380,000 6.00%, 5/1/2006.................................... 1,313,208
3,305,000 6.75%, 5/1/2004.................................... 3,261,671
750,000 Boynton Beach, FL MHRB, Clipper Cove Apts.,
6.35%, 7/1/2016................................... 761,003
1,875,000 Brevard Cnty., FL Hlth. Facs. Auth. RB, Courtenay
Springs Vlg.,
7.50%, 11/15/2012................................. 2,081,962
1,000,000 Brevard Cnty., FL Tourist Dev. Tax RB, Marlin
Spring,
6.875%, 3/1/2013.................................. 1,007,540
725,000 Broward Cnty., FL HFA RB, Ser. A, (Ins. by GNMA),
7.35%, 3/1/2023................................... 742,168
2,090,000 Broward Cnty., FL MHRB, Stirling Apts. Proj.,
5.65%, 10/1/2028.................................. 1,800,305
Championsgate, FL CDD Capital Impt. RB:
2,840,000 Ser. A,
6.25%, 5/1/2020.................................... 2,594,198
3,030,000 Ser. B,
5.70%, 5/1/2005.................................... 2,923,344
2,520,000 Cory Lakes, FL CDD RB,
8.375%, 5/1/2017.................................. 2,542,428
4,000,000 Covington Park, FL CDD RB,
7.00%, 5/1/2031................................... 3,858,320
Crossings at Fleming Island, FL CDD Util. RB:
1,525,000 6.75%, 10/1/2025................................... 1,460,569
1,080,000 7.375%, 10/1/2019.................................. 1,105,013
500,000 Dade Cnty., FL MHRB, Golden Lakes Apts. Proj., Ser.
A,
6.00%, 11/1/2032.................................. 447,740
2,310,000 Duval Cnty., FL HFA RB, St. Augustine Apts. Proj.,
6.00%, 3/1/2021................................... 2,242,964
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Florida - continued
$ 1,425,000 Eastlake Oaks, FL CDD RB,
7.75%, 5/1/2017..................................... $ 1,454,355
1,745,000 Escambia Cnty., FL HFA SFHRB, Multi-Cnty. Program,
6.85%, 10/1/2017.................................... 1,829,807
Escambia Cnty., FL Hlth. Facs. Auth. RB:
Azalea Trace Inc.:
2,905,000 6.00%, 1/1/2015...................................... 2,542,020
2,250,000 6.10%, 1/1/2019...................................... 1,924,583
1,500,000 Baptist Hosp. Inc., Ser. B,
6.00%, 10/1/2014..................................... 1,333,140
Escambia Cnty., FL PCRB, Champion
Intl. Corp. Proj.:
3,000,000 6.40%, 9/1/2030...................................... 2,842,770
2,000,000 6.90%, 8/1/2022...................................... 2,014,760
Florida HFA RB:
St. Cloud Vlg. Proj.:
4,905,000 Ser. D,
5.95%, 2/1/2030...................................... 4,662,153
1,395,000 Ser. E,
8.00%, 2/1/2030...................................... 1,342,911
1,200,000 Sunset Place,
Ser. K-3,
6.50%, 10/1/2029..................................... 1,123,968
1,500,000 The Vineyards Proj., Ser. H,
6.50%, 11/1/2025..................................... 1,496,115
Grand Haven, FL CDD, Spl. Assmt. RB, Ser. A:
10,325,000 6.30%, 5/1/2002...................................... 10,319,734
3,850,000 6.90%, 5/1/2019...................................... 3,769,497
3,000,000 Heritage Harbor, FL CDD RB,
7.75%, 5/1/2019..................................... 2,826,090
Heritage Isles, FL CDD RB:
4,000,000 7.10%, 10/1/2023..................................... 3,613,320
2,600,000 Ser. A,
5.75%, 5/1/2005...................................... 2,525,198
2,600,000 Heritage Isles, FL CDD Spl. Assmt. RB, Ser. B,
6.00%, 5/1/2020..................................... 2,292,940
Heritage Oak Park, FL CDD Spl. Assmt. RB:
2,950,000 Ser. A,
6.50%, 5/1/2020...................................... 2,723,440
5,370,000 Ser. B,
6.00%, 5/1/2005...................................... 5,122,926
3,610,000 Hernando Cnty., FL IDA RB, Crushed Stone Co.,
8.50%, 12/1/2014.................................... 3,843,098
1,370,000 Hialeah Gardens, FL IDA RB, Waterford Convalescent,
Ser. A,
7.875%, 12/1/2007................................... 1,411,744
600,000 Hillsborough Cnty., FL Aviation Auth. RB, US Air
Proj., Ser. 2,
8.60%, 1/15/2022.................................... 630,330
</TABLE>
30
<PAGE>
EVERGREEN
Florida High Income Municipal Bond Fund
Schedule of Investments(continued)
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Florida - continued
Hillsborough Cnty., FL IDRB, Lakeshore Villas Proj.,
Sr. Ser. A:
$ 6,590,000 6.70%, 7/1/2021...................................... $ 5,951,561
8,410,000 6.75%, 7/1/2029...................................... 7,506,513
3,115,000 Homestead, FL IDA RB, Community Rehabilitation
Providers Program, Ser. A,
7.95%, 11/1/2018.................................... 3,158,267
2,500,000 Indian Trace, FL CDD Wtr. Mgmt., Spl. Benefit GO,
Subser. B,
8.25%, 5/1/2011..................................... 2,695,150
3,200,000 Indigo, FL CDD Capital Impt. RB,
Ser. C,
7.00%, 5/1/2030..................................... 3,065,184
Jacksonville, FL Hlth. Facs. Auth. RB:
Cypress Vlg. Proj.:
750,000 7.00%, 12/1/2014..................................... 765,030
1,020,000 7.00%, 12/1/2022..................................... 1,021,112
500,000 8.00%, 12/1/2015..................................... 538,945
First Mtge. Mental Hlth., Ser. A,
3,940,000 7.00%, 10/1/2029..................................... 3,656,280
2,375,000 Lake Bernadette, FL CDD Spl. Assmt. RB, Pub. Impt.,
Ser. A,
8.00%, 5/1/2017..................................... 2,423,521
3,200,000 Lake Cnty., FL Resource Recovery IDRB, NRG Recovery
Group, Inc., Ser. 1993-A,
5.85%, 10/1/2009.................................... 3,033,408
Lakeside Plantation, FL CDD RB,
Ser. B:
1,640,000 6.625%, 5/1/2006..................................... 1,610,513
2,360,000 6.95%, 5/1/2031...................................... 2,278,816
Lee Cnty., FL HFA SFHRB,
Multi-Cnty. Program:
2,010,000 Ser. A,
7.20%, 3/1/2027...................................... 2,130,500
Ser. A, Subser. 2:
2,005,000 7.45%, 9/1/2027...................................... 2,218,232
4,595,000 7.50%, 9/1/2027...................................... 5,129,858
2,170,000 Ser. A-6,
6.45%, 3/1/2031...................................... 2,212,315
2,475,000 Step Bond, (Eff. Yield 4.80%) (a), 6.85%, 3/1/2029... 2,610,679
Lee Cnty., FL IDA RB:
Cypress Cove Hlth. Program:
Ser. A:
3,290,000 6.25%, 10/1/2017..................................... 2,879,967
6,575,000 6.375%, 10/1/2025.................................... 5,698,158
1,155,000 Ser. B,
5.875%, 10/1/2027................................... 1,129,348
680,000 Encore Nursing Ctr.,
8.125%, 12/1/2007................................... 709,675
3,110,000 Leesburg, FL Hosp. RB, Leesburg Reg'l. Med. Ctr.
Proj., Ser. A,
6.125%, 7/1/2018.................................... 3,031,224
2,625,000 Leon Cnty., FL Ed'l. Facs. RB,
Ser. A, (Ins. by GNMA),
8.25%, 5/1/2014..................................... 2,678,419
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Florida - continued
Lexington Oaks, FL CDD RB:
$ 1,045,000 Ser. A,
6.125%, 5/1/2019................................... $ 944,293
6,330,000 Ser. B,
5.50%, 5/1/2005.................................... 6,048,125
2,250,000 Manatee Cnty., FL HFA SFHRB, Subser. 1,
7.45%, 5/1/2027................................... 2,422,800
1,220,000 Meadow Point II, FL CDD, Capital Impt. RB,
7.75%, 5/1/2018................................... 1,255,234
3,000,000 Mediterra South, FL CDD, Ser. A,
6.95%, 5/1/2031................................... 2,917,770
Miami Beach, FL Redev. Agcy. Tax Increment RB, City
Ctr. Historic Convention, Ser. B:
1,000,000 6.25%, 12/1/2016................................... 1,000,550
500,000 6.35%, 12/1/2022................................... 501,935
North Springs, FL Impt. Dist. Spl. Assmt. RB:
300,000 Ser. A,
7.00%, 5/1/2019.................................... 300,699
1,950,000 Heron Bay Proj.,
7.00%, 5/1/2019................................... 1,954,543
7,160,000 Parkland Isles Proj.,
Ser. B,
6.25%, 5/1/2005................................... 7,063,125
1,255,000 Wtr. Mgmt., Ser. A,
8.20%, 5/1/2024.................................... 1,384,642
Northern Palm Beach Cnty., FL Wtr. Ctl. & Impt.
Dist. RB:
2,015,000 Unit Dev. No. 5B,
6.00%, 8/1/2025.................................... 1,787,930
500,000 Unit Dev. No. 5D,
5.50%, 8/1/2015.................................... 441,515
3,800,000 Unit Dev. No. 9A,
Ser. A,
7.20%, 8/1/2016.................................... 3,952,190
Unit Dev. No. 9B:
1,000,000 5.90%, 8/1/2019.................................... 901,710
1,500,000 6.00%, 8/1/2029.................................... 1,322,340
500,000 Northern Palm Beach Cnty., FL Wtr. Ctl. Dist., Spl.
Assmt. RB, Unit Dev. No. 3A,
7.00%, 8/1/2015................................... 515,925
1,430,000 Northwood, FL CDD RB,
7.60%, 5/1/2017................................... 1,453,752
2,605,000 Ocean Hwy. & Port Auth., FL PCRB, Solid Wst.,
Jefferson Smurfit Corp., 6.50%, 11/1/2006......... 2,531,044
Orange Cnty., FL HFA MHRB:
10,140,000 Brentwood Park Apts., Ser. G,
6.40%, 7/1/2032.................................... 9,291,383
2,845,000 Hsg. Buena Vista Place II, Ser. I,
6.90%, 7/1/2039.................................... 2,612,933
1,000,000 Hsg. Loma Vista Proj.,
Ser. G,
5.20%, 9/1/2014.................................... 905,230
</TABLE>
31
<PAGE>
EVERGREEN
Florida High Income Municipal Bond Fund
Schedule of Investments(continued)
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Florida - continued
Orange Cnty., FL HFA
MHRB: - continued
$ 2,900,000 Hsg. Palm West Apts. Proj.,
Ser. B,
6.50%, 3/1/2034...................................... $ 2,616,583
14,925,000 Hsg. Palms at Brentwood,
Ser. K,
6.50%, 12/1/2034..................................... 13,303,399
Orange Cnty., FL HFA SFHRB:
Ser. B, (Ins. by GNMA/FNMA):
855,000 5.80%, 9/1/2017...................................... 843,355
1,095,000 6.85%, 10/1/2027..................................... 1,121,072
Orange Cnty., FL Hlth. Facs. Auth. RB:
1,040,000 Lakeside Apts., Inc.,
6.50%, 7/1/2013...................................... 995,259
Orlando Lutheran Tower:
395,000 8.40%, 7/1/2014...................................... 422,745
370,000 8.75%, 7/1/2026...................................... 399,463
Orlando, FL Spl. Assmt. RB,
Conroy Rd. Interchange Proj.,
Ser. A:
1,000,000 5.50%, 5/1/2010...................................... 922,810
5,000,000 5.80%, 5/1/2026...................................... 4,278,600
565,000 Overoaks, FL CDD Capital Impt. RB, 8.25%, 5/1/2017... 589,504
Palm Beach Cnty., FL HFA RB:
Abbey Delray South Proj.:
2,750,000 5.50%, 10/1/2011..................................... 2,465,677
2,500,000 5.50%, 10/1/2015..................................... 2,130,100
3,050,000 Daughters of Charity,
Ser. A, (Ins. by GNMA),
7.60%, 3/1/2023...................................... 3,140,311
1,330,000 Palm Beach Cnty., FL HFA SFHRB, Ser. A, (Ins. by
GNMA),
6.50%, 10/1/2021.................................... 1,347,357
1,500,000 Palm Beach Cnty., FL IDA RB, Geriatric Care Inc.
Proj.,
6.55%, 12/1/2016.................................... 1,520,730
Pinellas Cnty., FL Edl. Facs. Auth. RB:
3,145,000 Clearwater Christian College,
8.00%, 2/1/2011...................................... 3,339,392
685,000 Eckerd College,
7.75%, 7/1/2014...................................... 717,058
Pinellas Cnty., FL Hlth. Facs. Auth. RB
Sunshine Vlg. Nursing Home:
150,000 6.75%, 10/1/2000..................................... 149,525
100,000 7.00%, 10/1/2001..................................... 99,541
200,000 7.25%, 10/1/2002..................................... 200,494
1,100,000 8.00%, 10/1/2008..................................... 1,131,823
345,000 Polk Cnty., FL HFA SFHRB, Ser. A,
7.00%, 9/1/2015...................................... 348,498
Polk Cnty., FL IDA RB:
5,000,000 IMC Fertilizer,
Ser. A,
7.525%, 1/1/2015..................................... 5,134,150
2,000,000 Tampa Elec. Co. Proj.,
5.85%, 12/1/2030..................................... 1,925,360
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Florida - continued
$ 1,500,000 Quantum, FL CDD Spl. Assmt. RB, 7.75%, 3/1/2014.... $ 1,537,740
2,210,000 Remington, FL CDD,
6.95%, 5/1/2009................................... 2,176,408
3,700,000 River Ridge, FL CDD RB,
5.75%, 5/1/2008................................... 3,514,593
Sarasota Cnty., FL Hlth. Fac. Auth. RB:
5,540,000 Family Ext. Care,
6.25%, 11/15/2028.................................. 4,480,863
1,000,000 Sunnyside Properties,
6.00%, 5/15/2010................................... 921,610
1,830,000 Seminole, FL Wtr. Ctl. Dist.
Spl. Assmt. RB, Unit of Dev. No. 2, 7.25%,
8/1/2022.......................................... 1,837,045
St. John's Cnty., FL IDA RB,
Bayview Proj.:
Ser. A:
1,125,000 7.00%, 10/1/2012................................... 1,103,288
2,500,000 7.10%, 10/1/2026................................... 2,421,550
Glenmoor St. John's Proj.,
Ser. A:
5,000,000 8.00%, 1/1/2020.................................... 4,901,950
6,000,000 8.00%, 1/1/2023.................................... 5,857,860
2,510,000 Vicars Landing Proj.,
Ser. A,
6.75%, 2/15/2012................................... 2,432,039
St. Lucie West Svcs. Dist., FL
Utility RB:
9,855,000 Sub. Lien,
7.00%, 10/1/2010................................... 9,767,192
2,000,000 Sr. Lien, (Ins. by MBIA),
6.00%, 10/1/2022................................... 2,010,400
9,630,000 Stoneybrook, FL CDD Golf Course RB, 7.00%,
10/1/2022......................................... 8,659,392
Volusia Cnty., FL Edl. Facs.
Auth. RB, Embry-Riddle Aero,
Ser. A:
2,000,000 5.75%, 10/15/2029.................................. 1,818,300
1,025,000 6.125%, 10/15/2016................................. 1,022,263
5,000,000 6.125%, 10/15/2026................................. 4,806,350
2,000,000 Volusia Cnty., FL IDA, First Mtge. RB, Bishop Glenn
Proj.,
7.625%, 11/1/2026................................. 2,284,040
Westchase East, FL CDD Capital Impt. RB:
1,350,000 7.30%, 5/1/2018.................................... 1,366,510
1,680,000 7.50%, 5/1/2017.................................... 1,713,802
3,255,000 Winston Trails, FL CDD Spl. Obl., 6.50%,
10/1/2031......................................... 3,068,326
1,000,000 Winter Garden, FL IDA RB,
Beverly Enterprises,
8.75%, 7/1/2012................................... 1,059,080
Winter Haven, FL Hsg. Auth. MHRB, Abbey Lane Apts.,
Ser. C, (Ins. by FNMA):
1,015,000 7.00%, 7/1/2012.................................... 1,053,550
2,000,000 7.00%, 7/1/2024.................................... 2,075,960
------------
341,109,952
------------
</TABLE>
32
<PAGE>
EVERGREEN
Florida High Income Municipal Bond Fund
Schedule of Investments(continued)
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Georgia - 1.2%
$ 5,000,000 Gainesville & Hall Cnty., GA Dev. Auth. RB, Sr.
Living Facs., Lanier Vlg. Estates, Ser. C,
7.25%, 11/15/2029................................. $ 4,726,800
------------
Maine - 0.4%
1,500,000 Maine Fin. Auth. Solid Wst. Disposal RB, Boise
Cascade Corp. Proj., 7.90%, 6/1/2015.............. 1,525,935
------------
Maryland - 1.1%
4,555,000 Maryland Energy Fin. Admin. Ltd. Obl. RB, Office
Paper Sys., Inc. Proj., Ser. A,
7.50%, 9/1/2015................................... 4,416,573
------------
West Virginia - 0.7%
3,000,000 Mason Cnty., WV PCRB, Appalachian Pwr. Co. Proj.,
Ser. I,
6.85%, 6/1/2022................................... 3,025,140
------------
Puerto Rico - 0.6%
980,000 Cmnwlth. of Puerto Rico Indl., Tourist, Edl., Med.
& Env. Ctl. Facs. RB, Mennonite General Hosp.
Proj.,
Ser. A,
6.50%, 7/1/2012................................... 932,852
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Puerto Rico - continued
$ 1,475,000 Cmnwlth. of Puerto Rico Port Auth. RB, American
Airlines Proj., Ser. A,
6.25%, 6/1/2026................................... $ 1,416,133
------------
2,348,985
------------
U. S. Virgin Islands - 5.2%
Virgin Islands Pub. Fin. Auth. RB,
Sr. Lien, Ser. A:
6,000,000 5.50%, 10/1/2018................................... 5,310,421
10,000,000 5.50%, 10/1/2022................................... 8,675,000
8,000,000 5.625%, 10/1/2025.................................. 6,993,200
------------
20,978,621
------------
Total Municipal Obligations
(cost $404,422,213)............................... 386,043,768
------------
<CAPTION>
Shares Value
<C> <S> <C>
MUTUAL FUND SHARES - 2.8%
11,307,000 Federated Municipal Obligations Fund (cost
$11,307,000)...................................... 11,307,000
------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments -
(cost $415,729,213)......................... 98.6% 397,350,768
Other Assets and
Liabilities - net........................... 1.4 5,725,071
----- ------------
Net Assets................................... 100.0% $403,075,839
===== ============
</TABLE>
See Combined Notes to Schedules of Investments.
33
<PAGE>
EVERGREEN
Florida Municipal Bond Fund
Schedule of Investments
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - 101.8%
Connecticut - 0.2%
$ 1,550,000 Connecticut Dev. Auth. Mtge.,
5.80%, 4/1/2021................................... $ 1,287,135
------------
Florida - 98.1%
4,000,000 Alachua Cnty., FL Hlth. Facs. Auth. RB, Shands
Teaching Hosp., Ser. A,
(Ins. by MBIA),
6.25%, 12/1/2016.................................. 4,243,200
Baker Cnty., FL Hosp. Auth. Healthcare Facs. RB:
285,000 4.10%, 12/1/2001................................... 279,944
320,000 4.40%, 12/1/2004................................... 301,712
200,000 4.60%, 12/1/2006................................... 184,554
380,000 4.70%, 12/1/2008................................... 342,467
1,810,000 5.10%, 12/1/2013................................... 1,588,275
3,750,000 Brevard Cnty., FL HFA MHRB, Windover Oaks, Ser. A,
(Ins. by FNMA),
6.90%, 2/1/2027................................... 4,037,325
625,000 Brevard Cnty., FL Hlth. Facs. Auth. RB, Courtenay
Springs Vlg.,
7.375%, 11/15/2004................................ 658,963
4,000,000 Broward Cnty., FL Expressway Auth. GO,
9.875%, 7/1/2009.................................. 5,156,800
3,000,000 Broward Cnty., FL GO, Ser. C,
6.00%, 1/1/2004................................... 3,094,920
1,145,000 Broward Cnty., FL HFA RB, Ser. B, (Ins. by GNMA),
7.125%, 3/1/2017.................................. 1,169,560
Broward Cnty., FL Port Facs. RB,
Ser. C:
3,700,000 5.375%, 9/1/2011................................... 3,657,820
2,220,000 5.375%, 9/1/2012................................... 2,183,326
3,000,000 Broward Cnty., FL Sch. Dist. GO, 5.40%, 2/15/2005.. 3,058,680
1,350,000 Clearwater, FL Hsg. Auth. RB, Hamptons at
Clearwater,
5.40%, 5/1/2013................................... 1,295,824
Collier Cnty., FL Hlth. Facs. Auth. RB:
700,000 6.25%, 12/1/2007................................... 701,673
700,000 6.375%, 12/1/2008.................................. 705,670
500,000 The Moorings, Inc. Proj.,
7.00%, 12/1/2019.................................. 509,900
10,830,000 Dade Cnty., FL Aviation RB, Ser. W,
(Ins. by AMBAC),
5.90%, 10/1/2005.................................. 11,218,580
Dade Cnty., FL Edl. Facs. Auth. RB, St. Thomas
Univ., (LOC: Sun Bank Miami):
2,000,000 6.00%, 1/1/2010.................................... 2,064,280
2,000,000 6.00%, 1/1/2014.................................... 2,037,200
1,000,000 6.125%, 1/1/2019................................... 1,013,340
165,000 Dade Cnty., FL SFHRB, Ser. E,
7.00%, 3/1/2024................................... 167,982
5,000,000 Dade Cnty., FL Solid Wst. Sys., Spl. Obl., (Ins. by
AMBAC),
6.00%, 10/1/2006.................................. 5,246,050
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Florida - continued
Duval Cnty., FL HFA Single Family Mtg. RB:
$ 8,085,000 5.85%, 10/1/2027................................... $ 8,085,000
55,000 7.30%, 7/1/2011.................................... 56,598
770,000 7.35%, 7/1/2024.................................... 793,662
3,000,000 Duval Cnty., FL Sch. Dist. GO,
(Ins. by AMBAC),
5.90%, 8/1/2002................................... 3,072,900
Escambia Cnty., FL Hlth. Facs. Auth. RB:
Azalea Trace Inc.:
2,560,000 6.00%, 1/1/2015.................................... 2,240,128
1,310,000 6.10%, 1/1/2019.................................... 1,120,535
2,950,000 Baptist Hosp. Inc., Ser. B,
6.00%, 10/1/2014................................... 2,621,842
Baptist Hosp. & Baptist Manor:
1,075,000 5.00%, 10/1/2005................................... 991,043
1,210,000 5.00%, 10/1/2007................................... 1,076,706
Escambia Cnty., FL PCRB, Champion Int'l. Corp.
Proj.:
5,455,000 5.875%, 6/1/2022................................... 4,856,968
2,650,000 6.40%, 9/1/2030.................................... 2,511,114
5,750,000 Escambia Cnty., FL Single Family Mtge. RB, Ser. A,
5.75%, 10/1/2031.................................. 5,760,120
2,500,000 Flagler Cnty., FL Sch. Dist. GO, 5.85%, 9/1/2002... 2,546,075
1,250,000 Florida Board of Ed. Capital Outlay, Pub. Ed. GO,
Ser. C,
7.00%, 6/1/2004................................... 1,268,538
Florida Division Bond Fin. Dept., Dept. of Env.
Preservation 2000, Ser. A, (Ins. by MBIA):
8,555,000 5.25%, 7/1/2007.................................... 8,637,385
5,600,000 6.00%, 7/1/2006.................................... 5,888,176
Florida Hsg. Fin. Agcy. RB:
1,715,000 6.35%, 5/1/2026.................................... 1,749,814
1,895,000 Ser. A,
6.875%, 10/1/2012.................................. 1,927,670
675,000 Ser. B,
6.55%, 7/1/2017.................................... 683,984
85,000 Homeownership Mtge.,
7.50%, 9/1/2014.................................... 87,370
550,000 Landings at Sea Forest,
(Ins. by AMBAC),
5.85%, 12/1/2018................................... 533,506
2,000,000 Multifamily Hsg., Ser. C,
6.20%, 8/1/2016.................................... 2,023,400
Florida Hsg. Fin. Corp. RB:
2,785,000 Ser. 4, (Ins. by FSA),
5.85%, 7/1/2031.................................... 2,784,749
Ser. 7:
7,610,000 5.20%, 1/1/2031.................................... 7,470,661
10,940,000 (Ins. by FSA),
6.00%, 1/1/2021.................................... 10,958,270
Hsg. Sunset Place, Ser. K-1:
740,000 5.15%, 10/1/2006................................... 725,407
455,000 5.50%, 10/1/2009................................... 441,464
</TABLE>
34
<PAGE>
EVERGREEN
Florida Municipal Bond Fund
Schedule of Investments(continued)
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Florida - continued
Florida Port Fin. Commission RB, State Trans. Trust
Fund Intermodal,
(Ins. by FGIC):
$ 1,840,000 5.50%, 10/1/2010................................... $ 1,857,554
3,570,000 5.50%, 10/1/2011................................... 3,575,855
3,455,000 5.50%, 10/1/2012................................... 3,442,389
5,000,000 Florida State Board of Ed. Capital Outlay, Public
Ed., Ser. B,
6.00%, 6/1/2006................................... 5,251,600
2,000,000 Florida Turnpike Auth., Turnpike RB, Dept. of
Trans., Ser. A,
(Ins. by AMBAC),
6.90%, 7/1/2002................................... 2,094,880
Gainesville, FL Util. Sys. RB, Ser. B:
4,800,000 6.50%, 10/1/2013................................... 5,298,576
3,000,000 7.50%, 10/1/2008................................... 3,474,030
3,000,000 7.50%, 10/1/2009................................... 3,504,510
3,000,000 Greater Orlando, FL Aviation Auth., Arpt. Facs. RB,
(Ins. by FGIC),
5.75%, 10/1/2010.................................. 3,054,600
Halifax, FL Hosp. Med. Ctr. Hlth. Care Facs. RB,
Mgmt. Sys., Ser. A:
1,080,000 4.40%, 4/1/2004.................................... 1,026,507
1,240,000 4.50%, 4/1/2005.................................... 1,164,571
1,300,000 4.50%, 4/1/2006.................................... 1,201,070
Hialeah, FL Hsg. Auth. RB:
1,800,000 Affordable Hsg. Program,
4.60%, 12/20/2008.................................. 1,734,174
12,505,000 Muni. Hsg.,
9.50%, 11/1/2021................................... 15,719,910
1,410,000 Refunding Hsg. Patterson Pavilion, 5.15%,
5/1/2008........................................... 1,381,377
Highlands Cnty., FL Hlth. Facs. Auth. RB, Adventist
Hlth. Sys.:
3,735,000 5.25%, 11/15/2011.................................. 3,224,164
3,935,000 5.25%, 11/15/2012.................................. 3,340,146
3,140,000 5.25%, 11/15/2013.................................. 2,627,583
6,470,000 Hillsborough Cnty., FL Aviation RB, Tampa Int'l.
Arpt. Ser. A,
5.50%, 10/1/2008.................................. 6,553,592
Hillsborough Cnty., FL IDRB:
3,000,000 6.50%, 7/1/2029.................................... 2,632,980
Health Facs. Proj. Univ. Community Hosp., Ser. A:
500,000 4.90%, 8/15/2007................................... 455,095
5,560,000 5.50%, 8/15/2014................................... 4,836,310
Jacksonville, FL Excise Taxes RB, Impt. Ser. B,
(Ins. by FGIC):
2,805,000 5.75%, 10/1/2012................................... 2,851,563
3,050,000 5.75%, 10/1/2013................................... 3,081,140
Jacksonville, FL Hlth. Facs Auth. IDRB, Natl.
Benevolent-Cypress Vlg.:
1,825,000 6.40%, 12/1/2016................................... 1,726,304
1,245,000 Ser. A,
6.25%, 12/1/2026................................... 1,082,913
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Florida - continued
Jacksonville, FL Hlth. Facs. Auth. Hosp. RB:
Charity Obl. Group, Ser. C:
$ 4,300,000 5.75%, 8/15/2012..................................... $ 4,372,111
4,550,000 5.75%, 8/15/2013..................................... 4,595,545
2,810,000 5.75%, 8/15/2014..................................... 2,821,633
2,090,000 5.75%, 8/15/2015..................................... 2,085,695
St. Luke's Hosp. Assn. Proj.,
9,500,000 7.125%, 11/15/2020................................... 9,978,610
4,000,000 Lake Cnty., FL, Resources Recovery Indl. Dev., NRG
Recovery Group, Inc., Ser. 1993A,
5.85%, 10/1/2009.................................... 3,791,760
Lakeland, FL Elec. & Wtr. RB, Energy Sys. First Lien,
(Ins. by FSA):
4,000,000 Ser. B,
6.55%, 10/1/2007..................................... 4,347,880
5,000,000 Ser. C,
6.05%, 10/1/2010..................................... 5,329,850
Lee Cnty., FL HFA SFHRB:
Ser. A 7:
930,000 5.05%, 9/1/2029...................................... 875,521
1,835,000 6.40%, 3/1/2029...................................... 1,870,709
1,505,000 Ser. A, Subser. 2,
6.50%, 3/1/2031...................................... 1,533,565
2,760,000 Ser. A-4,
7.00%, 9/1/2031...................................... 2,884,117
Lee Cnty., FL IDA Hlth. Care RB, Shell Point Vlg.
Proj., Ser. A:
1,150,000 5.25%, 11/15/2004.................................... 1,092,787
1,000,000 5.50%, 11/15/2008.................................... 909,970
1,015,000 5.75%, 11/15/2011.................................... 896,803
1,500,000 5.75%, 11/15/2013.................................... 1,289,535
1,535,000 5.75%, 11/15/2014.................................... 1,305,656
Leesburg, FL Hosp. RB, Leesburg Regl. Med. Ctr.
Proj.:
5,000,000 5.60%, 7/1/2008...................................... 4,956,950
Ser. A:
5,000,000 6.125%, 7/1/2012..................................... 5,032,250
3,000,000 6.125%, 7/1/2018..................................... 2,924,010
Ser. B:
1,515,000 5.625%, 7/1/2013..................................... 1,453,824
4,890,000 5.70%, 7/1/2018...................................... 4,537,040
Leon Cnty., FL Edl. Facs. Auth. COP:
1,145,000 8.50%, 9/1/2017...................................... 1,487,343
1,045,000 9.00%, 9/1/2004...................................... 1,210,079
1,140,000 9.00%, 9/1/2005...................................... 1,350,490
1,245,000 9.00%, 9/1/2006...................................... 1,506,363
1,355,000 9.00%, 9/1/2007...................................... 1,670,661
1,475,000 9.00%, 9/1/2008...................................... 1,849,399
1,610,000 9.00%, 9/1/2009...................................... 2,050,351
1,755,000 9.00%, 9/1/2010...................................... 2,264,740
1,915,000 9.00%, 9/1/2011...................................... 2,500,090
2,085,000 9.00%, 9/1/2012...................................... 2,749,823
2,275,000 9.00%, 9/1/2013...................................... 3,021,769
2,480,000 9.00%, 9/1/2014...................................... 3,312,883
</TABLE>
35
<PAGE>
EVERGREEN
Florida Municipal Bond Fund
Schedule of Investments(continued)
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Florida - continued
$ 615,000 Leon Cnty., FL HFA SFHRB, Multi-Cnty. Program, Ser.
B,
(Ins. by GNMA),
6.25%, 7/1/2019................................... $ 616,519
Manatee Cnty., FL HFA Mtge. RB:
Single Family, SubSer. 1:
3,015,000 6.25%, 11/1/2028................................... 2,954,459
1,675,000 7.20%, 5/1/2028.................................... 1,802,786
2,340,000 Single Family, SubSer. 2,
7.00%, 11/1/2027................................... 2,502,232
Miami Beach, FL Hlth. Facs. Auth. Hosp. RB, South
Shore Hosp., Ser. A:
1,660,000 4.30%, 8/1/2003.................................... 1,587,110
2,305,000 4.80%, 8/1/2008.................................... 2,091,672
2,185,000 5.25%, 8/1/2013.................................... 1,935,582
Miami Beach, FL Redev. Agcy. Tax Increment RB, City
Ctr. Historic Convention Vlg.:
2,000,000 5.625%, 12/1/2009.................................. 1,976,920
3,000,000 5.80%, 12/1/2013................................... 2,924,850
2,000,000 5.875%, 12/1/2022.................................. 1,877,100
Miami Dade Cnty., FL Edl. Facs. Auth. RB, Ser. A,
(Ins. by AMBAC):
2,110,000 5.75%, 4/1/2011.................................... 2,183,365
2,950,000 5.75%, 4/1/2012.................................... 3,043,279
Miami Dade Cnty., FL Hsg. Fin. Mtge. RB:
11,710,000 Ser. A-1,
5.20%, 10/1/2031................................... 11,308,113
805,000 Villa Esperanza Apts. Proj.,
4.90%, 10/1/2011................................... 738,700
Miami Dade Cnty., FL IDA RB:
1,475,000 Airis Miami II LLC Proj.,
(Ins. by AMBAC),
5.10%, 10/15/2009.................................. 1,450,707
12,340,000 Spl. Facs. United Air Lines Inc. Proj., 6.05%,
3/1/2035........................................... 12,376,650
1,000,000 North Miami, FL Hlth. Fac. Auth. RB, Catholic Hlth.
Svcs. Obl. Group, 6.00%, 8/15/2016................ 1,002,600
1,335,000 North Springs, FL Wtr. & Swr. RB, Ser. B, (Ins. by
MBIA),
6.50%, 10/1/2016.................................. 1,423,190
1,000,000 North Tampa, FL Hsg. Dev. Corp. RB, Country Oaks
Apt., Ser. A,
(Ins. by FNMA),
6.90%, 1/1/2024................................... 1,024,030
Northern Palm Beach Cnty., FL Impt. RB,
Wtr. Ctl. & Impt. Unit Dev:
1,195,000 Number 5B,
5.75%, 8/1/2014.................................... 1,088,932
1,000,000 Number 9B,
5.85%, 8/1/2013.................................... 923,790
Orange Cnty., FL HFA RB:
5,225,000 Ser. 3,
5.30%, 10/1/2006................................... 5,276,780
3,000,000 Ser. A-1,
5.625%, 9/1/2028................................... 2,961,390
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Florida - continued
Orange Cnty., FL Hlth. Facs. Auth. RB:
Ser. 3:
$ 5,785,000 5.50%, 10/1/2008................................... $ 5,895,667
2,000,000 5.70%, 10/1/2011................................... 2,058,020
3,000,000 Lakeside Alternatives, Inc.,
6.50%, 7/1/2013.................................... 2,870,940
8,010,000 Orlando Regl. Healthcare Sys., Ser. 99-D, (Ins. by
MBIA),
5.75%, 10/1/2012................................... 8,165,714
Orlando & Orange Cnty., FL Expressway Auth. RB:
10,000,000 5.375%, 7/1/2010................................... 10,056,800
4,550,000 6.50%, 7/1/2011.................................... 5,018,650
40,000 8.25%, 7/1/2015.................................... 50,753
4,000,000 Orlando, FL Util. Commission, Wtr. & Elec. RB,
6.00%, 10/1/2010.................................. 4,247,800
1,500,000 Osceola Cnty., FL Spl. Assmt., West 192 Redev. Area
PH IIB,
5.625%, 11/1/2029................................. 1,273,770
3,000,000 Palm Beach Cnty., FL Criminal Justice Facs. RB,
(Ins. by FGIC),
7.20%, 6/1/2015................................... 3,489,720
1,880,000 Palm Beach Cnty., FL GO, Ser. B, 6.50%, 7/1/2010... 2,067,079
Palm Beach Cnty., FL Hlth. Facs. Auth. RB:
2,730,000 9.50%, 8/1/2013.................................... 3,434,886
Abbey Delray South Proj.:
975,000 5.20%, 10/1/2006................................... 920,887
500,000 5.30%, 10/1/2007................................... 469,110
Good Samaritan Hlth. Sys.:
3,695,000 6.20%, 10/1/2011................................... 3,893,237
6,000,000 6.30%, 10/1/2022................................... 6,359,640
Hosp. Impt. Corp. Obl., Ser. A:
930,000 4.00%, 12/1/2003................................... 887,118
970,000 4.00%, 12/1/2004................................... 908,997
Waterford Proj.:
795,000 4.80%, 10/1/2002................................... 778,671
635,000 5.00%, 10/1/2003................................... 616,325
875,000 5.00%, 10/1/2004................................... 838,714
920,000 5.10%, 10/1/2005................................... 875,131
965,000 5.20%, 10/1/2006................................... 911,442
990,000 5.30%, 10/1/2007................................... 928,838
6,750,000 5.50%, 10/1/2015................................... 5,751,270
2,000,000 Palm Beach Cnty., FL IDA RB, Resource, Geriatric
Care, Inc. Proj., 6.55%, 12/1/2016................ 2,027,640
3,695,000 Pasco Cnty., FL HFA RB, Multifamily Hsg., Oak Trail
Apts. Proj., Ser. A, 5.35%, 6/1/2027.............. 3,646,263
5,000,000 Pasco Cnty., FL Hlth. Facs. Auth., Hosp. RB, Ser.
2,
5.60%, 10/1/2010.................................. 4,988,900
2,500,000 Pembroke Pines, FL Cons. Util. Sys. RB, (Ins. by
FGIC),
6.25%, 9/1/2004................................... 2,599,200
</TABLE>
36
<PAGE>
EVERGREEN
Florida Municipal Bond Fund
Schedule of Investments(continued)
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Florida - continued
Pinellas Cnty., FL Edl. Facs. Auth. RB, Barry Univ.
Proj.:
$ 410,000 4.65%, 10/1/2004................................... $ 390,808
470,000 4.90%, 10/1/2007................................... 436,710
495,000 4.95%, 10/1/2008................................... 456,137
Pinellas Cnty., FL HFA:
5,355,000 Ser. C-1,
6.30%, 3/1/2029.................................... 5,505,208
3,240,000 Emerald Bay Apts., Ser. A,
5.00%, 4/1/2028.................................... 3,124,948
3,000,000 Multi-Cnty. Program, Ser. A-1: 7.20%, 9/1/2029..... 3,219,810
4,870,000 5.95%, 3/1/2030.................................... 4,918,602
9,000,000 Multi-Cnty. Program, Ser. B-1, 6.20%, 3/1/2031..... 9,184,410
7,300,000 Polk Cnty., FL IDA RB, Cargill Fertilizer, Inc.
Proj.,
5.50%, 11/1/2009.................................. 7,202,618
595,000 Reedy Creek, FL Impt. Dist., RB, Ser. A, (Ins. by
MBIA),
6.15%, 6/1/2003................................... 613,433
1,800,000 Sarasota Cnty., FL Hlth. Fac. Auth. RB, Sunnyside
Property,
6.00%, 5/15/2010.................................. 1,658,898
Sarasota Cnty., FL Util. Sys. RB, Capital
Appreciation, Ser. A,
(Ins. by AMBAC):
2,345,000 (Eff. Yield 3.54%) (a),
0.00%, 6/1/2019.................................... 606,792
2,725,000 (Eff. Yield 3.55%) (a),
0.00%, 6/1/2016.................................... 878,159
3,000,000 Seminole Cnty., FL GO, Sch. Dist., (Ins. by MBIA),
6.00%, 8/1/2003................................... 3,117,990
4,635,000 South Lake Cnty., FL Hosp. RB, South Lake Hosp.
Inc.,
6.00%, 10/1/2022.................................. 4,219,704
945,000 St. Johns Cnty., FL IDA RB,
6.00%, 8/1/2008................................... 956,926
Suwannee Cnty., FL Hlth. Care Facs. RB, Advent
Christian Vlg. Inc.:
1,360,000 4.25%, 4/1/2004.................................... 1,282,752
1,310,000 5.00%, 4/1/2008.................................... 1,230,942
1,160,000 5.00%, 4/1/2011.................................... 1,043,466
1,345,000 5.00%, 4/1/2014.................................... 1,156,122
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Florida - continued
$ 200,000 Tallahassee, FL Hlth. Facs. RB, Tallahassee Mem.
Regl. Med. Ctr., (Ins. by MBIA),
6.625%, 12/1/2013................................. $ 213,674
5,000,000 Tampa Bay Wtr, FL Util. Sys. RB,
(Ins. by FGIC),
6.00%, 10/1/2024.................................. 5,045,400
Volusia Cnty., FL Edl. Facs. Auth. RB, Ser. A,
Embry-Riddle Aero:
3,500,000 6.125%, 10/15/2016................................. 3,490,655
2,600,000 6.125%, 10/15/2026................................. 2,499,302
------------
529,439,739
------------
Texas - 1.0%
5,000,000 Gulf Coast Wst. Disposal Auth.,
TX. RB,
7.45%, 5/1/2026................................... 5,172,500
------------
U. S. Virgin Islands - 2.5%
5,335,000 Virgin Islands, Pub. Fin. Auth. RB, Ser. A,
5.20%, 10/1/2010.................................. 4,931,994
Virgin Islands, Wtr. & Pwr. Auth. RB:
6,550,000 5.125%, 7/1/2012................................... 5,993,316
2,945,000 5.375%, 7/1/2010................................... 2,812,093
------------
13,737,403
------------
Total Municipal Obligations
(cost $560,825,928)............................... 549,636,777
------------
<CAPTION>
Shares Value
<C> <S> <C>
MUTUAL FUND SHARES - 3.6%
19,396,000 Federated Municipal Obligations Fund............... 19,396,000
80,000 Federated Tax Free Obligations Fund................ 80,000
------------
Total Mutual Fund Shares
(cost $19,476,000)................................ 19,476,000
------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments -(cost $580,301,928)...... 105.4% 569,112,777
Other Assets and Liabilities - net.......... (5.4) (29,162,015)
----- ------------
Net Assets.................................. 100.0% $539,950,762
===== ============
</TABLE>
See Combined Notes to Schedules of Investments.
37
<PAGE>
EVERGREEN
Georgia Municipal Bond Fund
Schedule of Investments
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - 97.5%
Georgia - 91.1%
$1,000,000 Albany Dougherty, GA Payroll Dev. Auth. RB, Proctor &
Gamble Proj.,
5.20%, 5/15/2028.................................... $ 862,210
Appling Cnty., GA Dev. Auth. PCRB, Oglethorpe Pwr.
Corp., Hatch Proj., (Ins. by MBIA):
1,055,000 7.125%, 1/1/2015..................................... 1,128,512
500,000 7.15%, 1/1/2021...................................... 533,820
Atlanta, GA Arpt. Facs. RB, Ser. A,
(Ins. by AMBAC):
2,000,000 6.50%, 1/1/2006...................................... 2,134,500
1,000,000 6.50%, 1/1/2010...................................... 1,087,000
Baldwin Cnty., GA Hosp. Auth. RB, Oconne Regl. Med.
Ctr.:
1,465,000 5.25%, 12/1/2012..................................... 1,254,743
565,000 5.35%, 12/1/2014..................................... 475,510
630,000 5.40%, 12/1/2015..................................... 525,401
2,000,000 Brunswick & Glynn Cnty., GA Dev. Auth. RB, Georgia
Pacific Corp. Proj.,
5.55%, 3/1/2026..................................... 1,673,640
300,000 Butts Cnty., GA COP, (Ins. by MBIA),
6.75%, 12/1/2014.................................... 322,065
300,000 Camden Cnty., GA Joint Dev. Auth. PCRB, Union Carbide
Corp. Proj., 5.00%, 1/1/2012........................ 266,415
1,820,000 Cartersville, GA Dev. Auth. RB,
Wtr. & Wastewater Facs.,
Anheuser-Busch Co., Inc.,
7.40%, 11/1/2010.................................... 2,033,723
120,000 Cartersville, GA GO,
6.70%, 1/1/2012..................................... 131,234
500,000 Clayton Cnty., GA Hsg. Auth. Mtge. RB, Park Walk
Apts., Ltd.,
(Ins. by FHA & FNMA),
7.125%, 12/1/2025................................... 525,710
1,600,000 Coffee Cnty., GA Hosp. Auth. RB, Coffee Regl. Med.
Ctr., Ser. A,
6.75%, 12/1/2016.................................... 1,497,904
College Park, GA Business & IDA RB, Civic Ctr. Proj.,
Ser. A, (Ins. by FSA):
1,435,000 5.70%, 9/1/2009...................................... 1,476,342
1,470,000 5.75%, 9/1/2010...................................... 1,511,160
1,000,000 Conyers, GA Wtr. & Swr. RB, Ser. A, (Ins. by AMBAC),
6.60%, 7/1/2015..................................... 1,070,480
DeKalb Cnty., GA Hsg. Auth. MHRB:
1,435,000 North Hill Apts. Proj., (Ins. by FNMA),
6.625%, 1/1/2005..................................... 1,497,695
500,000 The Lakes at Indian Creek Proj.,
(Ins. by FSA),
7.15%, 1/1/2025...................................... 523,545
500,000 DeKalb Cnty., GA Sch. Dist. GO, Ser. A,
6.25%, 7/1/2011..................................... 541,385
3,000,000 Effingham Cnty., GA Dev. Auth. Solid Wst. Disp. RB,
Fort James Proj., 5.625%, 7/1/2018.................. 2,605,110
Effingham Cnty., GA Sch. Dist. GO,
(Ins. by MBIA):
1,260,000 6.25%, 2/1/2007...................................... 1,340,539
1,160,000 6.25%, 2/1/2008...................................... 1,238,985
500,000 6.25%, 2/1/2009...................................... 535,230
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Georgia - continued
Fayette Cnty., GA Sch. Dist. GO:
$ 600,000 6.125%, 3/1/2015....................................... $ 634,524
2,200,000 6.25%, 3/1/2006........................................ 2,324,806
Forsyth Cnty., GA Sch. Dist. GO:
1,000,000 6.00%, 2/1/2014........................................ 1,037,040
1,000,000 6.00%, 2/1/2015........................................ 1,030,890
1,000,000 6.75%, 7/1/2016........................................ 1,111,980
3,000,000 Fulton Cnty., GA Dev. Auth. Spl. Facs. RB, Delta
Airlines, Inc. Proj.,
5.30%, 5/1/2013....................................... 2,662,440
Fulton Cnty., GA Residential Care Facs. RB:
1,820,000 Canterbury Court Proj.,
6.20%, 10/1/2019....................................... 1,656,892
1,500,000 Sr. Lien, RHA Assisted Living Buckhead, Ser. A,
6.90%, 7/1/2019........................................ 1,343,505
390,000 Fulton Cnty., GA Wtr. & Swr. ETM RB, (Ins. by FGIC),
6.375%, 1/1/2014...................................... 421,543
Fulton Cnty., GA Wtr. & Swr. RB,
(Ins. by FGIC):
1,420,000 6.25%, 1/1/2006........................................ 1,501,451
1,500,000 6.25%, 1/1/2009........................................ 1,604,865
Gainesville & Hall Cnty., GA Dev. Auth. RB, Sr. Living
Facs., Lanier Vlg. Estates, Ser. C:
1,000,000 6.75%, 11/15/2015...................................... 963,380
1,000,000 7.25%, 11/15/2029...................................... 945,360
2,340,000 Gainesville & Hall Cnty., GA Hosp. Auth. RB, Northeast
GA Hlth. Sys., Inc. Proj., (Ins. by MBIA),
6.00%, 5/15/2014...................................... 2,412,985
Gainesville, GA Wtr. & Swr. RB,
(Ins. by FGIC):
1,000,000 5.25%, 11/15/2010...................................... 995,870
1,000,000 Ser. B,
7.20%, 11/15/2010...................................... 1,041,100
500,000 George L. Smith II, GA World Congress Ctr. Auth. RB,
Domed Stadium Proj., (Ins. by MBIA),
7.875%, 7/1/2020...................................... 514,995
1,000,000 Georgia GO, Ser. B,
7.00%, 11/1/2008...................................... 1,038,730
390,000 Georgia Hsg. & Fin. Auth. RB, Ser. A-2, (Ins. by FHA &
Gtd. by VA Mtgs.), 6.55%, 12/1/2027................... 392,582
Georgia Muni. Elec. Auth. Pwr. RB,
Ser. B:
500,000 6.20%, 1/1/2010........................................ 524,420
1,000,000 (Ins. by MBIA-IBC),
6.25%, 1/1/2017........................................ 1,056,710
400,000 Ser. EE, (Ins. by AMBAC),
7.25%, 1/1/2024........................................ 466,884
1,500,000 Ser. Z, (Ins. by FGIC),
5.50%, 1/1/2012........................................ 1,505,055
1,000,000 Georgia Muni. Elec. Auth. RB, Proj. One, Ser. A, (Ins.
by MBIA),
6.00%, 1/1/2007....................................... 1,041,960
</TABLE>
38
<PAGE>
EVERGREEN
Georgia Municipal Bond Fund
Schedule of Investments(continued)
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Georgia - continued
$1,830,000 Georgia Private Colleges & Univ. Auth. RB, Emery
Univ. Proj., Ser. A,
5.75%, 11/1/2012.................................... $ 1,875,311
2,050,000 Glynn-Brunswick, GA Mem. Hosp. Auth. RB, (Ins. by
MBIA),
6.00%, 8/1/2016..................................... 2,083,722
2,500,000 Gwinnett Cnty., GA Wtr. & Swr. COP, 8.60%, 8/1/2003.. 2,791,550
Hall Cnty., GA Sch. Dist. GO,
(Ins. by AMBAC):
1,210,000 6.45%, 12/1/2009..................................... 1,304,755
500,000 6.70%, 12/1/2014..................................... 544,395
2,000,000 Med. Ctr. Hosp. Auth., GA RB, Columbus Regl.
Healthcare Sys.,
(Ins. by MBIA),
6.10%, 8/1/2014..................................... 2,082,920
Metro. Atlanta, GA Rapid Transit Auth. Sales Tax RB:
830,000 Ser. D, (Ins. by FGIC),
7.00%, 7/1/2011...................................... 945,984
1,000,000 Ser. P, (Ins. by AMBAC),
6.25%, 7/1/2011...................................... 1,074,810
1,000,000 Middle, GA Coliseum Auth. RB, GA Coliseum Proj., Ser.
A,
5.375%, 7/1/2014.................................... 972,180
Monroe Cnty., GA Dev. Auth. PCRB, Oglethorpe Pwr.
Corp., Ser. A,
(Ins. by MBIA-IBC):
1,000,000 6.45%, 1/1/2005...................................... 1,058,120
1,000,000 6.70%, 1/1/2009...................................... 1,096,070
525,000 Peach Cnty., GA Sch. Dist. GO,
(Ins. by MBIA),
6.50%, 2/1/2006..................................... 561,860
Savannah, GA EDA RB, Mighty Eighth Air Force:
1,000,000 5.875%, 1/1/2012..................................... 1,019,930
860,000 5.875%, 1/1/2015..................................... 866,889
Savannah, GA Hosp. Auth. RB, St. Joseph's Hosp.
Proj.:
1,500,000 6.125%, 7/1/2012..................................... 1,579,950
500,000 6.20%, 7/1/2023...................................... 527,790
1,300,000 Washington Cnty., GA Sch. Dist. GO, (Ins. by AMBAC),
6.875%, 1/1/2014.................................... 1,422,213
-----------
76,831,274
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Maryland - 0.8%
$ 750,000 Frederick Cnty., MD Spl. Obl. RB, Urbana CDA,
6.625%, 7/1/2025.................................... $ 699,165
-----------
Virginia - 1.0%
1,000,000 Charles City Cnty., VA IDA RB, Wst. Mgmt., Inc.
Proj.,
4.875%, 2/1/2009.................................... 839,470
-----------
Puerto Rico - 1.3%
1,000,000 Cmnwlth. of Puerto Rico GO,
(Ins. by MBIA),
6.25%, 7/1/2008..................................... 1,079,350
-----------
U. S. Virgin Islands - 3.3%
1,000,000 Virgin Islands Pub. Fin. Auth. RB, Sr. Lien, Ser. A,
5.50%, 10/1/2018.................................... 885,070
2,000,000 Virgin Islands, Wtr. & Pwr. Auth. Elec. Sys. RB,
5.25%, 7/1/2009..................................... 1,904,760
-----------
2,789,830
-----------
Total Municipal Obligations (cost $83,079,227)....... 82,239,089
-----------
<CAPTION>
Shares Value
<C> <S> <C>
MUTUAL FUND SHARES - 1.4%
1,187,000 Federated Municipal Obligations Fund................. 1,187,000
2,000 Federated Tax Free Obligations Fund.................. 2,000
-----------
Total Mutual Fund Shares (cost $1,189,000)........... 1,189,000
-----------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments -(cost $84,268,227).......... 98.9% 83,428,089
Other Assets and
Liabilities - net............................. 1.1 933,011
----- -----------
Net Assets..................................... 100.0% $84,361,100
===== ===========
</TABLE>
See Combined Notes to Schedules of Investments.
39
<PAGE>
EVERGREEN
Maryland Municipal Bond Fund
Schedule of Investments
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - 95.4%
District of Columbia - 1.6%
District of Columbia Metro. Area Transit Auth. RB
(Ins. by FGIC):
$ 300,000 6.00%, 7/1/2008...................................... $ 315,426
300,000 6.00%, 7/1/2010...................................... 315,549
-----------
630,975
-----------
Georgia - 1.1%
500,000 Fulton Cnty., GA Residential Care Facs. RB, Sr. Lien,
RHA Assisted Living Buckhead, Ser. A,
6.90%, 7/1/2019..................................... 447,835
-----------
Maryland - 88.2%
1,230,000 Annapolis, MD EDRB, St. John's College Facs.,
5.50%, 10/1/2018.................................... 1,087,431
1,000,000 Anne Arundel Cnty., MD Spl. Obl. RB, Arundel Mills
Proj.,
7.10%, 7/1/2029..................................... 980,780
250,000 Anne Arundel Cnty., MD Wtr. & Swr. RB,
5.25%, 4/15/2010.................................... 250,318
1,000,000 Baltimore Cnty., MD Refunding Metro. Dist. GO,
5.00%, 8/1/2011..................................... 972,830
1,000,000 Baltimore Cnty., MD Rev. Auth. RB, 5.25%, 7/1/2008... 994,600
1,500,000 Baltimore, MD Refunding Wtr. Proj. RB, Ser. A, (Ins.
by FGIC),
5.80%, 7/1/2015..................................... 1,515,660
2,015,000 Calvert Cnty., MD PCRB, Baltimore Gas & Elec. Co.
Proj.,
5.55%, 7/15/2014.................................... 1,997,933
250,000 Frederick Cnty., MD GO, Ser. B,
5.20%, 5/1/2008..................................... 251,105
1,000,000 Frederick Cnty., MD Spl. Obl. RB, Urbana CDA,
6.625%, 7/1/2025.................................... 932,220
275,000 Hagerstown, MD GO,
5.50%, 9/1/2009..................................... 277,390
295,000 Howard Cnty., MD Prerefunded Cons. Pub. Impt. GO,
Ser. A,
5.25%, 8/15/2011.................................... 298,481
Maryland CDA Dept. of Hsg. & Cmnty. Dev. RB:
150,000 Ser. A, (Ins. by AMBAC),
6.88%, 6/1/2006...................................... 157,199
1,000,000 Ser. F,
5.90%, 9/1/2019...................................... 957,600
1,365,000 Ser. H, (Ins. by FHA),
5.65%, 9/1/2012...................................... 1,354,380
Maryland CDA Dept. of Hsg. & Cmnty. Dev. SFHRB:
100,000 Ser. 3, (Ins. by FHA),
6.90%, 4/1/2005...................................... 103,070
1,470,000 Ser. 5,
5.40%, 4/1/2008...................................... 1,459,666
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Maryland - continued
$ 750,000 Maryland Energy Fin. Admin. Ltd. Obl. RB, Office Paper
Sys., Inc. Proj.,
Ser. A,
7.50%, 9/1/2015....................................... $ 727,207
1,000,000 Maryland GO, State & Local Facs. Loan, 5.70%,
3/15/2010............................................. 1,034,230
Maryland Hlth. & Higher Edl. Facs. Auth. RB:
Calvert Mem. Hosp.:
450,000 4.80%, 7/1/2010........................................ 400,437
300,000 5.00%, 7/1/2019........................................ 247,110
Doctors Cmnty. Hosp., Inc.:
735,000 5.50%, 7/1/2024........................................ 563,554
380,000 5.75%, 7/1/2013........................................ 328,240
1,000,000 Francis Scott Key Med. Ctr.,
(Ins. by FGIC),
5.30%, 7/1/2008........................................ 1,005,000
600,000 Refunding Pickersgill, Ser. A,
5.85%, 1/1/2010........................................ 591,144
225,000 Union Hosp. of Cecil Cnty.,
4.60%, 7/1/2009........................................ 195,890
1,800,000 Maryland Stadium Auth. Lease RB, Convention Ctr.
Expansion Proj.,
(Ins. by AMBAC),
5.88%, 12/15/2011..................................... 1,838,682
850,000 Maryland Trans. Facs. Auth. RB,
5.80%, 7/1/2006....................................... 883,685
1,500,000 Montgomery Cnty., MD GO, Ser. A, 5.38%, 1/1/2007....... 1,526,055
500,000 Montgomery Cnty., MD GO Refunding Cons. Pub. Impt.,
Ser. A,
5.75%, 7/1/2006....................................... 519,295
2,265,000 Northeast, MD Wst. Disp. Auth. Solid Wst. RB,
Montgomery Cnty. Resource Recovery Proj., Ser. A,
6.30%, 7/1/2016....................................... 2,298,726
1,250,000 Northeast, MD Wst. Disp. Resource Recovery RB,
Baltimore Resco
Retrofit Proj.,
5.00%, 1/1/2012....................................... 1,017,687
1,000,000 Ocean City, MD GO, (Ins. by MBIA),
5.50%, 3/15/2009...................................... 1,014,840
250,000 Prince Georges Cnty., MD COP, Real Estate Acquistion
Program,
(Ins. by MBIA),
5.90%, 9/15/2009...................................... 257,057
250,000 Prince Georges Cnty., MD GO, Stormwater Mgmt.,
5.40%, 3/15/2007...................................... 253,848
1,300,000 Prince Georges Cnty., MD IDA Lease RB, Hyattsville
Dist. Court Facs., Ser. A,
6.00%, 7/1/2009....................................... 1,348,347
1,000,000 Prince Georges Cnty., MD PCRB, Potomac Elec. Proj.,
5.75%, 3/15/2010...................................... 1,027,610
Univ. of MD Sys. Auxilliary Facs. & Tuition RB, Ser. A:
1,400,000 5.40%, 4/1/2009........................................ 1,413,874
50,000 6.30%, 2/1/2009........................................ 51,917
</TABLE>
40
<PAGE>
EVERGREEN
Maryland Municipal Bond Fund
Schedule of Investments(continued)
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Maryland - continued
$1,600,000 Washington, MD Suburban Sanitation Dist. GO,
5.38%, 6/1/2011..................................... $ 1,606,032
1,700,000 Washington, MD Suburban Sanitation Dist. Wtr. Supply
RB,
5.50%, 6/1/2010..................................... 1,724,973
-----------
35,466,103
-----------
Virginia - 1.7%
750,000 Chesapeake, VA Redev. & Hsg. Auth. MHRB, Residential
Rental, Chesapeake Crossing, Ser. A,
6.20%, 4/1/2028..................................... 674,948
-----------
U. S. Virgin Islands - 2.8%
Virgin Islands Wtr. & Pwr. Auth. Elec. Sys. RB:
500,000 5.13%, 7/1/2003...................................... 495,210
750,000 5.30%, 7/1/2018...................................... 641,422
-----------
1,136,632
-----------
Total Municipal Obligations (cost $39,415,159)....... 38,356,493
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
MUTUAL FUND SHARES - 3.6%
1,453,834 Federated Municipal Obligations Fund.................. $ 1,453,834
8,000 Federated Tax Free Obligations Fund................... 8,000
-----------
Total Mutual Fund Shares (cost $1,461,834)............ 1,461,834
-----------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments -(cost $40,876,993).......... 99.0% 39,818,327
Other Assets and
Liabilities - net............................. 1.0 405,765
----- -----------
Net Assets..................................... 100.0% $40,224,092
===== ===========
</TABLE>
See Combined Notes to Schedules of Investments.
41
<PAGE>
EVERGREEN
North Carolina Municipal Bond Fund
Schedule of Investments
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - 94.9%
Illinois - 1.2%
$ 3,775,000 Chicago, IL RB, O'Hare Int'l. Arpt. Spl. Facs.
Proj., Ser. B,
5.20%, 4/1/2011................................... $ 3,347,406
------------
North Carolina - 88.8%
1,435,000 Asheville, NC Hsg. Auth. MHRB, Woodridge Apts.,
(Ins. by GNMA),
5.80%, 11/20/2039................................. 1,311,317
1,130,000 Burlington, NC Burlington Homes RB, Section 8, Ser.
A,
6.00%, 8/1/2009................................... 1,133,639
3,000,000 Catawba Cnty., NC Hosp. RB, Catawba Mem. Hosp.
Proj., (Ins. by AMBAC),
5.25%, 10/1/2014.................................. 2,844,540
1,000,000 Chapel Hill, NC Parking Facs. RB, COP,
6.35%, 12/1/2018.................................. 1,023,930
Charlotte, NC Airport RB, (Ins. by MBIA):
2,395,000 5.75%, 7/1/2012.................................... 2,424,650
1,000,000 5.875%, 7/1/2014................................... 1,009,390
2,755,000 6.00%, 7/1/2015.................................... 2,797,785
Charlotte, NC COP:
1,475,000 6.00%, 6/1/2014.................................... 1,493,983
1,735,000 Cityfair Parking Fac. Proj., Ser. A,
6.125%, 6/1/2010................................... 1,798,518
1,000,000 Convention Fac. Proj., (Ins. by AMBAC),
6.65%, 12/1/2003................................... 1,050,020
1,245,000 Stadium Parking Fac. Proj., Ser. C,
6.00%, 6/1/2010.................................... 1,274,146
5,000,000 Charlotte, NC GO,
5.00%, 2/1/2010................................... 4,915,450
1,395,000 Charlotte, NC Hsg. Dev. Corp., RB, Mtge. Vantage 78
Apts.,
6.60%, 7/15/2021.................................. 1,420,738
Charlotte, NC Mecklenberg Hosp. RB:
1,050,000 5.75%, 1/1/2012.................................... 1,053,843
1,000,000 NC Hlth. Care Sys.,
6.00%, 1/1/2005.................................... 1,027,080
5,000,000 Charlotte, NC Spl. Facs. RB, Charlotte Douglas
Int'l. Arpt.,
5.60%, 7/1/2027................................... 3,969,550
4,000,000 Craven Cnty., NC, Indl. Facs. & Pollution Ctl. Fin.
Auth. RB, Weyerhaeuser Co. Proj.,
6.35%, 1/1/2010................................... 4,066,520
2,000,000 Craven Cnty., NC GO,
6.40%, 6/1/2000................................... 2,011,680
2,390,000 Cumberland Cnty., NC COP, Civic Ctr. Proj., Ser. A,
(Ins. by AMBAC),
6.40%, 12/1/2024.................................. 2,574,269
Cumberland Cnty., NC GO:
2,100,000 5.90%, 2/1/2010.................................... 2,196,411
2,100,000 5.90%, 2/1/2011.................................... 2,196,411
2,100,000 5.90%, 2/1/2012.................................... 2,196,411
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
North Carolina - continued
Cumberland Cnty., NC Hosp. Facs. RB, Cumberland Cnty.
Hosp. Sys. Inc.:
$ 3,520,000 5.00%, 10/1/2006..................................... $ 3,373,005
1,760,000 5.25%, 10/1/2012..................................... 1,595,229
3,000,000 5.25%, 10/1/2013..................................... 2,679,750
4,830,000 5.25%, 10/1/2014..................................... 4,253,732
Durham Cnty., NC, Pub. Impt. Bonds, Ser. 95:
2,400,000 5.80%, 2/1/2010...................................... 2,501,136
2,400,000 5.80%, 2/1/2011...................................... 2,494,752
Durham Cnty., NC COP, New Durham Corp.:
1,160,000 Ser. A,
5.25%, 12/1/2010..................................... 1,156,137
1,485,000 Ser. B,
5.25%, 12/1/2011..................................... 1,465,666
2,750,000 Durham Cnty., NC MHRB, Ivy Commons Proj.,
8.00%, 3/1/2029..................................... 2,654,135
Fayetteville, NC Pub. Works Commission RB:
Ser. A:
1,360,000 (Ins. by AMBAC),
6.75%, 3/1/2003...................................... 1,431,074
2,000,000 (Ins. by FSA),
6.00%, 3/1/2012...................................... 2,034,080
1,025,000 Franklin Cnty., NC COP, (Ins. by FGIC),
6.20%, 6/1/2004..................................... 1,074,733
910,000 Fremont, NC Hsg. Dev. Corp. RB, Torhunta Apts., (Ins.
by FHA),
6.75%, 7/15/2022.................................... 929,674
Gastonia, NC Combined Util. Sys. RB, (Ins. by MBIA):
1,000,000 6.00%, 5/1/2014...................................... 1,056,540
1,505,000 6.10%, 5/1/2019...................................... 1,595,706
Greensboro, NC Combined Enterprise Sys. RB, Ser. A:
1,615,000 5.20%, 6/1/2010...................................... 1,602,467
880,000 6.50%, 6/1/2002...................................... 913,502
1,050,000 6.50%, 6/1/2003...................................... 1,102,563
Greensboro, NC COP, Coliseum Arena Expansion Proj.:
1,000,000 6.40%, 12/1/2001..................................... 1,029,600
1,100,000 6.65%, 12/1/2004..................................... 1,157,442
1,000,000 Harnett Cnty., NC COP, (Ins. by AMBAC),
6.40%, 12/1/2014.................................... 1,055,590
Haywood Cnty., NC Indl. Facs. & Pollution Ctl. Fin.
RB, Champion Intl. Corp. Proj.:
2,500,000 6.00%, 3/1/2020...................................... 2,306,100
1,750,000 6.25%, 9/1/2025...................................... 1,636,163
4,750,000 Martin Cnty., NC, Indl. Facs. & Pollution Ctl. Fin.
Auth. RB, Weyerhaeuser Co. Proj.,
6.80%, 5/1/2024..................................... 4,834,170
</TABLE>
42
<PAGE>
EVERGREEN
North Carolina Municipal Bond Fund
Schedule of Investments(continued)
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
North Carolina - continued
$ 6,500,000 Mecklenburg Cnty., NC GO,
5.00%, 4/1/2009..................................... $ 6,424,990
Mecklenburg Cnty., NC Pub. Impt. RB:
4,095,000 5.40%, 4/1/2008...................................... 4,172,682
5,000,000 5.40%, 4/1/2009...................................... 5,085,950
3,000,000 New Hanover Cnty., NC, Pub. Improvement GO
5.75%, 11/1/2013.................................... 3,074,070
1,000,000 North Carolina Coastal Regl. Solid Wst. Mgmt. Auth.,
RB, Solid Wst. Disposal Sys.,
6.50%, 6/1/2008..................................... 1,054,760
North Carolina Eastern Muni. Pwr. Agcy., Pwr. Sys.
RB:
Ser. A:
5,000,000 5.00%, 1/1/2021...................................... 4,508,300
7,850,000 5.625%, 1/1/2014..................................... 7,756,507
(Ins. by MBIA):
5,000,000 5.70%, 1/1/2013...................................... 5,006,450
3,750,000 6.50%, 1/1/2018...................................... 3,730,013
3,400,000 7.00%, 1/1/2013...................................... 3,808,136
1,845,000 7.50%, 1/1/2010...................................... 2,114,757
5,000,000 Ser. B,
6.00%, 1/1/2022...................................... 4,611,700
6,500,000 Ser. C, (Ins. by AMBAC),
6.00%, 1/1/2018...................................... 6,635,460
North Carolina Hsg. Fin. & Dev. Auth., SFHRB:
1,045,000 Ser. EE,
5.90%, 9/1/2013...................................... 1,049,358
3,600,000 Ser. JJ,
6.15%, 3/1/2011...................................... 3,631,644
955,000 Ser. T,
7.05%, 9/1/2020...................................... 992,302
855,000 Ser. W,
6.20%, 9/1/2009...................................... 869,107
North Carolina Hsg. Fin. Agcy. RB:
2,000,000 Ser. 5,
4.90%, 1/1/2024...................................... 1,956,380
10,060,000 Ser. 6-A,
5.35%, 7/1/2024...................................... 9,895,217
North Carolina Med. Care Commission Hosp. RB:
2,350,000 5.375%, 1/1/2022..................................... 1,792,604
2,585,000 6.50%, 10/1/2013..................................... 2,662,576
920,000 Carolina Medicorp Proj.,
6.30%, 5/1/2001...................................... 939,053
Deerfield Episcopal:
11,595,000 5.30%, 11/1/2004..................................... 11,150,796
3,550,000 5.85%, 7/1/2027...................................... 2,845,361
2,630,000 Gaston Hlth. Care,
5.375%, 2/15/2011.................................... 2,507,389
Grace Hosp. Inc.:
3,825,000 5.25%, 10/1/2013..................................... 3,487,750
1,110,000 6.50%, 10/1/2005..................................... 1,166,532
1,180,000 6.50%, 10/1/2006..................................... 1,242,410
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
North Carolina - continued
North Carolina Med. Care Commission Hosp. RB: -
continued
High Point Regl. Hlth. Sys.:
$ 1,605,000 (Ins. by AMBAC),
5.50%, 10/1/2008................................... $ 1,619,124
1,445,000 5.50%, 10/1/2009................................... 1,453,482
3,100,000 Hlth. Care Facs.,
5.75%, 7/1/2019.................................... 2,534,157
2,320,000 Northeast Med. Ctr. Proj.,
5.00%, 11/1/2010................................... 2,241,630
1,000,000 PA Mem. Hosp.,
5.25%, 1/1/2012.................................... 836,440
4,835,000 Pitt Cnty. Mem. Hosp., Ser. A,
5.25%, 12/1/2010................................... 4,699,233
Presbyterian Hlth. Svcs. Co. Proj.:
900,000 6.125%, 10/1/2014.................................. 946,944
925,000 7.30%, 10/1/2015................................... 960,354
Rex Hosp. Proj.:
2,500,000 6.125%, 6/1/2010................................... 2,637,250
3,700,000 6.25%, 6/1/2017.................................... 3,916,894
5,000,000 Stanly Mem. Hosp. Proj., (Ins. by AMBAC),
5.375%, 10/1/2014.................................. 4,778,250
Transylvania Community Hosp. Inc.:
1,130,000 5.50%, 10/1/2012................................... 988,761
1,090,000 5.75%, 10/1/2019................................... 889,941
5,000,000 North Carolina Muni. Pwr. Agcy., Elec. RB, Catawba
Elec., (Ins. by AMBAC),
7.25%, 1/1/2007................................... 5,536,150
North Carolina Student Edl. Assistance Auth. RB:
Ser. A:
1,000,000 6.05%, 7/1/2010.................................... 1,008,740
2,000,000 6.30%, 7/1/2015.................................... 2,019,180
2,375,000 Ser. C,
6.35%, 7/1/2016.................................... 2,402,598
1,000,000 Pitt Cnty., NC COP Pub. Facs., Ser. A, (Ins. by
MBIA),
5.55%, 4/1/2012................................... 1,007,750
Raleigh, NC Hsg. Auth. MHRB:
5,000,000 5.80%, 11/1/2019................................... 4,619,200
3,600,000 Subordinated Hsg. Mtge. Cedar Point, Ser. C,
7.00%, 11/1/2030................................... 3,282,948
3,170,000 Raleigh, NC Hsg. Auth. Multifamily, Hsg. Mtge.
Cedar Point Apts. Ser. A,
5.10%, 11/1/2010.................................. 3,011,944
3,865,000 Winston Salem, NC GO,
8.875%, 6/1/2000.................................. 3,911,225
------------
251,197,676
------------
West Virginia - 0.9%
3,000,000 Kanawha Cnty., WV PCRB, Union Carbide Corp. Proj.,
5.10%, 1/1/2012................................... 2,665,920
------------
</TABLE>
43
<PAGE>
EVERGREEN
North Carolina Municipal Bond Fund
Schedule of Investments(continued)
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Puerto Rico - 2.4%
$ 2,535,000 Cmnwlth. of Puerto Rico GO, (Ins. by MBIA),
6.25%, 7/1/2009................................... $ 2,741,425
1,000,000 Cmnwlth. of Puerto Rico Muni., Fin. Agcy., Ser. A,
5.70%, 7/1/2003................................... 1,043,400
1,400,000 Cmnwlth. of Puerto Rico Port Auth. RB, American
Airlines Proj., Ser. A,
6.25%, 6/1/2026................................... 1,344,126
Cmnwlth. of Puerto Rico RB, Indl. Tourist Edl.
Auth., Mennonite General Hosp. Proj., Ser. A:
1,380,000 5.625%, 7/1/2017................................... 1,148,615
500,000 5.625%, 7/1/2027................................... 389,270
------------
6,666,836
------------
U. S. Virgin Islands - 1.6%
5,000,000 Virgin Islands, Pub. Fin. Auth. RB, Refunding Sr.
Lien, Ser. A,
5.20%, 10/1/2010.................................. 4,622,300
------------
Total Municipal Obligations
(cost $274,973,299)............................... 268,500,138
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
MUTUAL FUND SHARES - 3.9%
10,905,000 Federated Municipal Obligations Fund................ $ 10,905,000
36,000 Federated Tax Free Obligations Fund................. 36,000
------------
Total Mutual Fund Shares
(cost $10,941,000)................................. 10,941,000
------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments -(cost $285,914,299)....... 98.8% 279,441,138
Other Assets and Liabilities - net........... 1.2 3,451,701
----- ------------
Net Assets................................... 100.0% $282,892,839
===== ============
</TABLE>
See Combined Notes to Schedules of Investments.
44
<PAGE>
EVERGREEN
South Carolina Municipal Bond Fund
Schedule of Investments
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - 94.2%
Georgia - 1.6%
$1,000,000 Fulton Cnty., GA Residential Care Facs. RB, Sr. Lien,
RHA Assisted Living Buckhead, Ser. A,
6.90%, 7/1/2019..................................... $ 895,670
-----------
Maryland - 1.2%
750,000 Frederick Cnty., MD Spl. Obl. RB, Urbana CDA,
6.625%, 7/1/2025.................................... 699,165
-----------
South Carolina - 78.8%
400,000 Calhoun Cnty., SC Solid Wst. Disposal Facs. RB,
Eastman Kodak Co. Proj.,
6.75%, 5/1/2017..................................... 439,548
Charleston Cnty., SC Hlth. Facs. RB, 1st Mtge.
Episcopal Church Proj.:
300,000 7.125%, 4/1/2020..................................... 295,413
750,000 Ser. A,
6.25%, 4/1/2019...................................... 653,542
Charleston Cnty., SC Resource Recovery RB, Foster
Wheeler, (Ins. by AMBAC):
3,000,000 5.10%, 1/1/2008...................................... 2,942,130
1,500,000 5.25%, 1/1/2010...................................... 1,468,335
675,000 Charleston, SC GO,
7.00%, 4/1/2011..................................... 690,174
Columbia, SC Wtrwks. & Swr. Sys. RB:
1,000,000 5.70%, 2/1/2010...................................... 1,031,290
2,000,000 6.00%, 2/1/2014...................................... 2,063,240
Darlington Cnty., SC IDRB:
500,000 Nucor Corp. Proj., Ser. A,
5.75%, 8/1/2023...................................... 466,530
750,000 Sonoco Products Co. Proj.,
6.00%, 4/1/2026...................................... 714,870
Florence Cnty., SC GO, Sch. Dist. No. 001, (Ins. by
FGIC):
1,150,000 5.80%, 5/1/2007...................................... 1,181,889
1,175,000 5.80%, 5/1/2008...................................... 1,204,915
1,200,000 5.80%, 5/1/2009...................................... 1,227,276
1,500,000 Georgetown Cnty., SC PCRB, Intl. Paper Co. Proj.,
Ser. A,
5.125%, 2/1/2012.................................... 1,368,390
200,000 Georgetown Cnty., SC Wtr. & Swr. Dist. RB, Refunding
& Impt. Jr. Lien,
6.50%, 6/1/2017..................................... 214,952
750,000 Grand Strand, SC Wtrwrks. & Swr. Sys. Auth. RB, (Ins.
by MBIA),
6.38%, 6/1/2012..................................... 815,558
Greenville, SC Hosp. Facs. RB, Ser. B:
1,315,000 5.60%, 5/1/2010...................................... 1,292,711
600,000 5.70%, 5/1/2012...................................... 585,360
400,000 Greenville, SC Mem. Auditorium Dist. GO, Bi-Lo Ctr.
Proj., (Ins. by AMBAC),
5.75%, 4/1/2018..................................... 419,760
1,000,000 Greenwood, SC Combined Pub. Util. RB, Refunding &
Impt., (Ins. by AMBAC),
5.50%, 12/1/2008.................................... 1,013,180
300,000 Horry Cnty., SC Arpt. RB, Ser. A, (Ins. by FSA),
5.60%, 7/1/2017..................................... 286,776
1,500,000 Loris, SC Community Hosp. RB, Ser. A,
5.50%, 1/1/2016..................................... 1,259,700
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
South Carolina - continued
$ 500,000 Loris, SC Community Sch. Hosp. Dist. RB, Ser. B,
5.625%, 1/1/2020.................................... $ 416,535
1,000,000 Medical University, SC Hosp. Facs. RB, (Ins. by
MBIA),
5.50%, 7/1/2008..................................... 1,017,980
285,000 Myrtle Beach, SC Wtr. & Swr. RB, (Ins. by MBIA),
4.70%, 3/1/2004..................................... 282,093
Piedmont, SC Muni. Pwr. Agcy., Elec. RB, (Ins. by
MBIA):
1,000,000 6.10%, 1/1/2006...................................... 1,050,900
1,150,000 6.25%, 1/1/2009...................................... 1,232,915
1,190,000 Richland Cnty., SC Edl. Facs. RB, Benedict College
Proj.,
6.25%, 7/1/2014..................................... 1,203,364
2,160,000 Richland Cnty., SC GO, Sch. Dist. No. 001,
5.75%, 3/1/2017..................................... 2,157,667
250,000 South Carolina Edl. Assistance Auth. RB, Gtd. Student
Loans, Ser. C,
5.88%, 9/1/2007..................................... 251,810
South Carolina Hsg. Fin. & Dev. Auth. MHRB:
100,000 Ser. A, (Coll. by FHA & Ins. by FNMA), 6.80%,
11/15/2011........................................... 103,188
265,000 Hunting Ridge Apts.,
1.00%, 6/1/2025...................................... 270,915
300,000 Runaway Bay Apts. Proj.,
6.13%, 12/1/2015..................................... 298,917
South Carolina Hsg. Fin. & Dev. Auth. Mtge. RB:
Ser. A:
500,000 (Ins. by AMBAC),
5.95%, 7/1/2029...................................... 492,720
(Ins. by FHA):
600,000 6.35%, 7/1/2025...................................... 601,446
85,000 6.55%, 7/1/2015...................................... 86,339
Heritage Ct. Apts., Ser. A, (Ins. by FHA):
680,000 5.85%, 7/1/2010...................................... 685,617
595,000 6.15%, 7/1/2025...................................... 588,913
2,000,000 Ser. B-1, (Ins. by FSA),
5.75%, 7/1/2015...................................... 1,979,740
South Carolina Jobs EDA Hosp. Facs. RB:
2,050,000 Anderson Area Med. Center, (Ins. by FSA),
5.63%, 2/1/2010...................................... 2,069,290
1,600,000 Georgetown Mem. Hosp.,
6.00%, 11/1/2014..................................... 1,621,296
200,000 Oconee Mem. Hosp. Inc.,
6.15%, 3/1/2015...................................... 202,914
South Carolina Jobs EDA-IDRB, Plasti Line Inc. Proj.,
(LOC: Keybank, NA):
220,000 5.50%, 7/1/2006...................................... 219,402
200,000 5.70%, 7/1/2009...................................... 198,528
190,000 5.80%, 7/1/2010...................................... 188,615
230,000 5.90%, 7/1/2011...................................... 228,553
400,000 6.25%, 7/1/2017...................................... 397,868
</TABLE>
45
<PAGE>
EVERGREEN
South Carolina Municipal Bond Fund
Schedule of Investments(continued)
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
South Carolina - continued
South Carolina Pub. Svc. Auth. RB, Ser. B, (Ins. by
FGIC):
$1,000,000 5.70%, 1/1/2008...................................... $ 1,029,830
1,250,000 6.50%, 1/1/2006...................................... 1,334,062
1,000,000 South Carolina Trans. Infrastructure Bank RB, Ser. A,
(Ins. by AMBAC),
5.50%, 10/1/2012.................................... 1,004,730
1,755,000 Spartanburg Cnty., SC Hlth. Svcs. Dist. Income RB,
Ser. B, (Ins. by MBIA),
6.00%, 4/15/2007.................................... 1,824,902
370,000 Three Rivers, SC Solid Wst. Disposal Facs. Auth. RB,
(Ins. by MBIA),
5.25%, 1/1/2005..................................... 370,914
-----------
45,047,502
-----------
Virginia - 2.3%
1,500,000 Chesapeake, VA Redev. & Hsg. Auth. MHRB, Residential
Rental, Chesapeake Crossing, Ser. A,
6.20%, 4/1/2028..................................... 1,349,895
-----------
Puerto Rico - 5.3%
3,000,000 Cmnwlth of Puerto Rico GO, (Ins. by MBIA),
5.65%, 7/1/2015..................................... 3,045,960
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
U. S. Virgin Islands - 5.0%
$2,000,000 Virgin Islands Pub. Fin. Auth. RB, Sr. Lien, Ser. A,
5.50%, 10/1/2018.................................... $ 1,770,140
1,250,000 Virgin Islands Wtr. & Pwr. Auth. Elec. Sys. RB,
5.30%, 7/1/2018..................................... 1,069,037
-----------
2,839,177
-----------
Total Municipal Obligations
(cost $54,727,485).................................. 53,877,369
-----------
<CAPTION>
Shares Value
<C> <S> <C>
MUTUAL FUND SHARES - 5.1%
2,070,000 Federated Municipal Obligations Fund................. 2,070,000
835,000 Federated Tax Free Obligations Fund.................. 835,000
-----------
Total Mutual Fund Shares
(cost $2,905,000)................................... 2,905,000
-----------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments -(cost $57,632,485).......... 99.3% 56,782,369
Other Assets and
Liabilities - net............................. 0.7 413,248
----- -----------
Net Assets..................................... 100.0% $57,195,617
===== ===========
</TABLE>
See Combined Notes to Schedules of Investments.
46
<PAGE>
EVERGREEN
Virginia Municipal Bond Fund
Schedule of Investments
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - 97.3%
District of Columbia - 2.0%
District of Columbia, Metropolitan Area Transit
Auth. RB, (Ins. by FGIC):
$2,500,000 6.00%, 7/1/2007..................................... $ 2,623,625
600,000 6.00%, 7/1/2009..................................... 631,026
------------
3,254,651
------------
Georgia - 0.5%
1,000,000 Fulton Cnty., GA Residential Care Facs. RB, Sr.
Lien, RHA Assisted Living Buckhead, Ser. A,
6.90%, 7/1/2019.................................... 895,670
------------
Maryland - 0.8%
Frederick Cnty., MD Spl. Obl. RB, Urbana CDA:
1,000,000 6.25%, 7/1/2010..................................... 941,150
500,000 6.625%, 7/1/2025.................................... 466,110
------------
1,407,260
------------
Virginia - 90.6%
Albemarle Cnty., VA IDA RB:
1,000,000 Martha Jefferson Hosp.,
5.75%, 10/1/2008.................................... 1,003,730
Residential Care Fac., Our Lady of Peace Inc.:
500,000 5.75%, 7/1/2019..................................... 410,050
100,000 6.45%, 7/1/2015..................................... 90,428
145,000 6.625%, 7/1/2021.................................... 131,366
Alexandria, VA Redev. & Hsg. Auth. MHRB, Buckingham
Vlg. Apts.:
1,000,000 5.45%, 7/1/2018..................................... 907,440
1,000,000 5.50%, 1/1/2029..................................... 891,730
1,000,000 Amherst, VA IDA RB, Georgia Pacific Corp. Proj.,
5.25%, 2/1/2011.................................... 938,960
1,000,000 Arlington Cnty., VA GO,
5.90%, 8/1/2010.................................... 1,054,490
Arlington Cnty., VA IDA MHRB, Woodbury Park Apts.:
1,000,000 Ser. A,
5.35%, 7/1/2018..................................... 912,660
1,600,000 Ser. B,
6.50%, 7/1/2024..................................... 1,461,824
4,105,000 Arlington Cnty., VA IDA Resource Recovery RB, Ogden
Martin Sys. of Alexandria/Arlington, Inc. Proj.,
(Ins. by FSA),
5.375%, 1/1/2013................................... 3,948,230
3,675,000 Big Stone Gap, VA Redev. & Hsg. Auth. Correctional
Fac. Lease RB, Wallens Ridge Dev. Proj.,
6.00%, 9/1/2007.................................... 3,855,773
Brunswick, VA IDA Correctional Fac. Lease RB, (Ins.
by MBIA):
1,000,000 5.50%, 7/1/2007..................................... 1,019,250
2,215,000 5.65%, 7/1/2009..................................... 2,268,027
200,000 5.75%, 7/1/2011..................................... 204,634
390,000 Buena Vista, VA IDA RB Wtr. & Swr. Fac., Route 60
Proj.,
6.25%, 7/15/2011................................... 380,987
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Virginia - continued
$4,750,000 Charles City Cnty., VA IDA RB, Wst. Mgmt., Inc. Proj.,
4.875%, 2/1/2009..................................... $ 3,987,482
250,000 Charlottesville-Albemarle, VA Arpt. Auth. RB,
6.125%, 12/1/2013.................................... 247,228
2,890,000 Chesapeake Bay, VA Dist. RB, Bridge & Tunnel
Commission, (Ins. by FGIC),
5.875%, 7/1/2010..................................... 2,993,260
1,000,000 Chesapeake, VA Arpt. Auth. RB,
5.30%, 8/1/2019...................................... 877,630
3,000,000 Chesapeake, VA Pub. Impt. GO,
5.375%, 5/1/2010..................................... 3,022,440
Chesapeake, VA Redev. & Hsg. Auth. MHRB, Residential
Rental, Chesapeake Crossing, Ser. A:
570,000 5.75%, 4/1/2009....................................... 548,141
250,000 6.00%, 4/1/2013....................................... 237,810
2,250,000 6.20%, 4/1/2028....................................... 2,024,842
1,000,000 Chesapeake, VA Wtr. & Swr. Fac. GO, Ser. A,
7.00%, 12/1/2004..................................... 1,086,700
Chesterfield Cnty., VA GO:
2,000,000 5.25%, 3/1/2010....................................... 2,002,600
1,375,000 5.375%, 1/15/2011..................................... 1,384,872
1,700,000 5.75%, 1/15/2016...................................... 1,716,456
1,000,000 5.75%, 1/15/2017...................................... 1,005,910
1,000,000 Ser. B,
6.70%, 1/1/2006....................................... 1,040,060
500,000 Chesterfield Cnty., VA Hlth. Ctr. Community Mtge. RB,
Lucy Nursing Home Proj., (Coll. by GNMA),
5.875%, 12/1/2021.................................... 485,320
500,000 Chesterfield Cnty., VA Wtr. & Swr. RB,
6.375%, 11/1/2007.................................... 526,840
2,545,000 Danville, VA IDA Hosp. RB, Danville Regl. Med. Ctr.,
(Ins. by FGIC),
6.20%, 10/1/2009..................................... 2,692,228
3,000,000 Dulles Town, VA CDA RB, Dulles Town Ctr. Proj.,
6.25%, 3/1/2026...................................... 2,779,380
1,110,000 Fairfax Cnty., VA EDA RB, Vienna II Metrorail, Ser. 1,
5.50%, 9/1/2012...................................... 1,117,526
370,000 Fairfax Cnty., VA IDA RB, Inova Hlth. Sys. Proj.,
5.875%, 8/15/2016.................................... 365,575
Fairfax Cnty., VA Redev. & Hsg. Auth. Mtge. RB:
500,000 Elderly Hsg., (Ins. by FHA),
6.00%, 9/1/2016....................................... 492,800
250,000 Inova Hlth. Sys. Proj.,
5.35%, 6/1/2006....................................... 250,638
2,605,000 Fairfax Cnty., VA Swr. RB,
5.625%, 7/15/2011.................................... 2,649,181
3,000,000 Goochland Cnty., VA IDA RB, Nekoosa Packaging Corp.,
5.65%, 12/1/2025..................................... 2,565,240
</TABLE>
47
<PAGE>
EVERGREEN
Virginia Municipal Bond Fund
Schedule of Investments(continued)
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Virginia - continued
$ 250,000 Greensville Cnty., VA IDA RB, Georgia Pacific Corp.
Proj.,
5.30%, 8/1/2014...................................... $ 228,740
Halifax Cnty., VA IDA RB, Halifax Regl. Hosp., Inc.:
300,000 4.80%, 9/1/2009....................................... 268,737
1,000,000 5.00%, 9/1/2011....................................... 892,460
400,000 5.25%, 9/1/2017....................................... 339,644
Hampton, VA GO:
500,000 6.00%, 1/15/2008...................................... 528,115
1,125,000 Pub. Impt.,
5.75%, 2/1/2013....................................... 1,148,310
Hanover Cnty., VA IDA RB:
960,000 Bon Secours Hlth. Sys. Proj., (Ins. by MBIA),
6.00%, 8/15/2008...................................... 1,000,003
1,360,000 Mem. Regl. Med. Ctr. Proj., (Ins. by MBIA),
6.50%, 8/15/2008...................................... 1,473,941
500,000 Harrisonburg, VA Redev. & Hsg. Auth. MHRB, Greens of
Salem Run Proj., (LOC: PNC Bank, NA & Ins. by FSA),
6.20%, 4/1/2017...................................... 501,685
Henrico Cnty., VA Wtr. & Swr. RB:
1,195,000 5.25%, 5/1/2013....................................... 1,162,807
1,000,000 5.70%, 5/1/2008....................................... 1,039,196
Henrico Cnty., VA IDA Lease RB:
700,000 7.00%, 8/1/2013....................................... 774,690
2,000,000 Bon Secours Hlth. Sys. Proj., (Ins. by MBIA),
5.60%, 8/15/2010...................................... 2,016,020
535,000 Isle Wright Cnty., VA IDA RB, Solid Wst. Disposal
Fac., Union Camp Corp. Proj.,
6.55%, 4/1/2024...................................... 532,395
1,000,000 James City Cnty., VA IDA RB, Residential Care Fac.,
Williamsburg Landing, Inc.,
6.625%, 3/1/2023..................................... 942,230
1,000,000 King & Queen Cnty., VA IDA Lease RB, King & Queen
Courts Complex, Ser. A,
5.625%, 7/15/2017.................................... 957,720
700,000 King George Cnty., VA IDA Lease RB, King George Cnty.
Sch. Proj.,
6.40%, 8/1/2016...................................... 682,759
1,000,000 Loudoun Cnty., VA GO, Ser. A,
5.50%, 10/1/2007..................................... 1,018,220
1,550,000 Loudoun Cnty., VA Sanitation Auth., Wtr. & Swr. RB,
(Ins. by FGIC),
6.25%, 1/1/2010...................................... 1,613,999
1,940,000 Newport News, VA GO,
5.75%, 1/15/2017..................................... 1,939,845
Norfolk, VA GO:
3,000,000 5.25%, 6/1/2011....................................... 2,967,120
2,000,000 5.70%, 6/1/2008....................................... 2,055,860
275,000 Norfolk, VA Redev. & Hsg. Auth. RB, Merrimack Landing
Proj.,
5.00%, 12/1/2005..................................... 269,731
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Virginia - continued
$1,300,000 Northampton Cnty., VA GO, Ser. A, (Ins. by FSA),
5.30%, 7/15/2018..................................... $ 1,181,388
4,000,000 Peninsula Ports Auth., VA RB, Port Fac. CSX Trans.
Proj.,
6.00%, 12/15/2012.................................... 3,910,640
1,300,000 Peumansend Creek, VA Regl. Jail Auth. RB, (Ins. by
MBIA),
5.75%, 6/1/2017...................................... 1,295,645
640,000 Portsmouth, VA Redev. & Hsg. Auth. MHRB, (Coll. by
FNMA),
6.30%, 9/1/2026...................................... 650,515
500,000 Portsmouth, VA Redev. & Hsg. Auth. RB, Chowan Apts.,
(Coll. by GNMA),
5.85%, 12/20/2030.................................... 472,750
700,000 Prince William Cnty., VA GO, Impt. & Refunding, Ser.
A,
6.20%, 12/1/2011..................................... 724,444
Prince William Cnty., VA IDA RB:
500,000 ATCC Proj.,
6.00%, 2/1/2014....................................... 490,735
Melrose Apts. Proj.:
1,000,000 Ser. A,
5.25%, 7/1/2018....................................... 893,670
4,000,000 Ser. C,
7.00%, 7/1/2029....................................... 3,636,880
500,000 Potomac Hosp. Corp.,
6.75%, 10/1/2015...................................... 549,510
745,000 Prince William Hosp., Ser. A,
5.625%, 4/1/2012...................................... 707,675
Prince William Cnty., VA Park Auth. RB:
500,000 6.30%, 10/15/2006..................................... 533,365
1,300,000 6.875%, 10/15/2016.................................... 1,417,247
Riverside, VA Regl. Jail Auth. RB, (Ins. by MBIA):
3,375,000 5.625%, 7/1/2007...................................... 3,465,450
1,000,000 5.875%, 7/1/2014...................................... 1,014,470
1,185,000 Roanoke, VA IDA Hosp. RB, Roanoke Mem. Hosp., Ser. B,
6.00%, 7/1/2007...................................... 1,202,479
Roanoke, VA Pub. Impt. GO:
1,730,000 6.00%, 10/1/2013...................................... 1,807,833
1,835,000 6.00%, 10/1/2014...................................... 1,906,382
1,950,000 6.00%, 10/1/2015...................................... 2,014,038
2,070,000 6.00%, 10/1/2016...................................... 2,129,098
Suffolk, VA GO, (Ins. by AMBAC):
250,000 5.70%, 6/1/2010....................................... 257,435
750,000 5.90%, 6/1/2013....................................... 771,922
1,250,000 Virginia Beach, VA Dev. Auth. Hlth. Care Fac. RB.,
Sentara Hlth. Sys.,
5.25%, 11/1/2015..................................... 1,156,700
Virginia Beach, VA GO:
1,575,000 5.40%, 7/15/2009...................................... 1,596,877
1,000,000 6.00%, 9/1/2009....................................... 1,057,280
1,540,000 Virginia Biotechnology Research Park RB, Biotech Five
Proj., Ser. A,
5.25%, 10/1/2014..................................... 1,388,449
750,000 Virginia College, VA Edl. Fac. Bldg. Auth. RB, Hampton
Univ. Proj.,
5.75%, 4/1/2014...................................... 748,522
</TABLE>
48
<PAGE>
EVERGREEN
Virginia Municipal Bond Fund
Schedule of Investments(continued)
February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Virginia - continued
$1,700,000 Virginia Comnwlth. Trans. Board RB, Northern Virginia
Transp. Dist. Program, Ser. B,
7.25%, 5/15/2020..................................... $ 1,906,924
1,000,000 Virginia GO,
6.10%, 6/1/2006...................................... 1,047,190
Virginia Hsg. Dev. Auth. MHRB:
Ser. H:
1,000,000 5.55%, 5/1/2015....................................... 957,990
500,000 6.00%, 5/1/2010....................................... 506,045
1,000,000 6.10%, 11/1/2011...................................... 1,016,130
300,000 6.35%, 11/1/2011...................................... 308,157
500,000 Ser. I,
5.45%, 5/1/2018....................................... 466,215
400,000 Ser. K,
5.90%, 5/1/2011....................................... 403,888
500,000 Ser. O,
6.05%, 11/1/2017...................................... 502,055
Virginia Hsg. Dev. Auth. RB, Cmnwlth. Mtge.:
1,000,000 Ser. A, Subser. A-1,
6.20%, 7/1/2011....................................... 1,010,280
Ser. C:
1,000,000 Subser. C-2,
5.75%, 7/1/2007....................................... 1,005,850
500,000 Subser. C-6,
6.25%, 1/1/2015....................................... 502,820
3,525,000 Ser. D, Subser. D-1,
6.10%, 1/1/2019....................................... 3,534,553
300,000 Ser. F, Subser. F-1,
6.25%, 7/1/2012....................................... 303,705
460,000 Virginia IDA RB, Small Business Fin., Hodges Farm
Associates II,
4.75%, 11/1/2012..................................... 454,080
750,000 Virginia Port Auth. Cmnwlth. Port Fund RB,
5.90%, 7/1/2016...................................... 750,907
400,000 Virginia Port Auth. Port Fac. RB, (Ins. by MBIA),
5.60%, 7/1/2027...................................... 366,488
Virginia Pub. Sch. Auth. RB:
Ser. A:
1,000,000 5.625%, 8/1/2009...................................... 1,023,990
4,000,000 6.125%, 8/1/2012...................................... 4,126,960
200,000 6.20%, 8/1/2014....................................... 206,932
850,000 Spl. Obl. York Cnty.,
5.90%, 7/15/2013...................................... 865,461
Virginia Resources Auth. Clean Wtr. RB, State
Revolving Fund:
2,150,000 5.50%, 10/1/2015...................................... 2,121,125
1,250,000 5.875%, 10/1/2014..................................... 1,281,125
1,250,000 6.00%, 10/1/2016...................................... 1,283,425
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
MUNICIPAL OBLIGATIONS - continued
Virginia - continued
Virginia Trans. Board RB, Northern VA Trans. Dist.:
$2,030,000 Program A,
6.00%, 5/15/2008.................................... $ 2,117,047
2,160,000 Ser. A,
6.75%, 5/15/2005.................................... 2,327,227
Virginia Univ., Cmnwlth. Univ. RB:
2,325,000 Ser. A,
5.75%, 5/1/2021..................................... 2,261,039
1,000,000 Ser. B,
5.35%, 5/1/2009..................................... 1,003,860
------------
150,576,832
------------
Puerto Rico - 1.1%
500,000 Cmnwlth. of Puerto Rico Elec. Pwr. Auth. RB, Ser.
FF, (Ins. by MBIA),
5.25%, 7/1/2010.................................... 503,135
1,200,000 Cmnwlth. of Puerto Rico GO, Ser. A, (Ins. by MBIA),
6.25%, 7/1/2013.................................... 1,298,364
------------
1,801,499
------------
U. S. Virgin Islands - 2.3%
Virgin Islands Pub. Fin. Auth. RB, Sr. Lien, Ser. A:
1,000,000 5.20%, 10/1/2009.................................... 933,260
2,000,000 5.50%, 10/1/2018.................................... 1,770,140
1,000,000 5.50%, 10/1/2022.................................... 867,500
250,000 5.625%, 10/1/2025................................... 218,538
------------
3,789,438
------------
Total Municipal Obligations
(cost $164,358,041)................................ 161,725,350
------------
<CAPTION>
Shares Value
<C> <S> <C>
MUTUAL FUND SHARES - 1.4%
2,366,000 Federated Municipal Obligations Fund................ 2,366,000
36,000 Federated Tax Free Obligations Fund................. 36,000
------------
Total Mutual Fund Shares
(cost $2,402,000).................................. 2,402,000
------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments - (cost $166,760,041)....... 98.7% 164,127,350
Other Assets and
Liabilities - net............................ 1.3 2,283,903
----- ------------
Net Assets.................................... 100.0% $166,411,253
===== ============
</TABLE>
See Combined Notes to Schedules of Investments.
49
<PAGE>
EVERGREEN
Combined Notes to Schedules of Investments
February 29, 2000 (Unaudited)
(a) Effective Yield (calculated at the date of purchase) is the yield at which
the bond accretes on an annual basis until maturity date.
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
VA Veteran's Administration
See Combined Notes to Financial Statements.
50
<PAGE>
EVERGREEN
Southern State Municipal Bond Funds
Statements of Assets and Liabilities
February 29, 2000 (Unaudited)
<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>
Assets
Identified cost of
securities............ $415,729,213 $580,301,928 $84,268,227 $40,876,993 $285,914,299 $57,632,485 $166,760,041
Net unrealized gains or
losses on securities.. (18,378,445) (11,189,151) (840,138) (1,058,666) (6,473,161) (850,116) (2,632,691)
- ------------------------------------------------------------------------------------------------------------------------
Market value of
securities............ 397,350,768 569,112,777 83,428,089 39,818,327 279,441,138 56,782,369 164,127,350
Cash................... 439 0 163 828 876 720 640
Receivable for
securities sold....... 0 0 0 1,018,907 0 0 1,419,755
Receivable for Fund
shares sold........... 186,157 20,048 0 0 10,000 0 122,400
Interest receivable.... 9,304,180 10,440,094 1,232,688 580,679 4,483,086 818,339 2,455,291
Deferred organization
expenses.............. 5,588 0 0 0 0 0 0
Prepaid expenses and
other assets.......... 35,982 73,111 15,687 16,500 20,142 23,042 25,314
- ------------------------------------------------------------------------------------------------------------------------
Total assets........... 406,883,114 579,646,030 84,676,627 41,435,241 283,955,242 57,624,470 168,150,750
- ------------------------------------------------------------------------------------------------------------------------
Liabilities
Distributions payable.. 1,156,968 1,841,074 301,153 81,913 982,585 210,591 508,870
Payable for securities
purchased............. 1,201,717 37,327,737 0 1,050,382 0 0 1,182,818
Payable for Fund shares
redeemed.............. 1,339,537 405,973 0 62,175 47,079 197,820 0
Advisory fee payable... 4,925 1,855 399 294 977 544 1,214
Distribution Plan
expenses payable...... 4,875 1,900 386 239 1,186 144 714
Due to other related
parties............... 1,102 1,475 230 110 772 156 454
Accrued expenses and
other liabilities..... 98,151 115,254 13,359 16,036 29,804 19,598 45,427
- ------------------------------------------------------------------------------------------------------------------------
Total liabilities...... 3,807,275 39,695,268 315,527 1,211,149 1,062,403 428,853 1,739,497
- ------------------------------------------------------------------------------------------------------------------------
Net assets.............. $403,075,839 $539,950,762 $84,361,100 $40,224,092 $282,892,839 $57,195,617 $166,411,253
- ------------------------------------------------------------------------------------------------------------------------
Net assets represented
by
Paid-in capital........ $438,726,533 $567,881,257 $86,917,933 $41,812,025 $294,313,285 $58,637,363 $170,826,160
Undistributed net
investment income..... 199,433 184,204 28,700 18,051 51,761 28,008 32,443
Accumulated net
realized losses on
securities............ (17,471,682) (16,925,548) (1,745,395) (547,318) (4,999,046) (619,638) (1,814,659)
Net unrealized losses
on securities......... (18,378,445) (11,189,151) (840,138) (1,058,666) (6,473,161) (850,116) (2,632,691)
- ------------------------------------------------------------------------------------------------------------------------
Total net assets........ $403,075,839 $539,950,762 $84,361,100 $40,224,092 $282,892,839 $57,195,617 $166,411,253
- ------------------------------------------------------------------------------------------------------------------------
Net assets consists of
Class A................ $222,475,668 $118,481,172 $ 5,321,376 $20,623,585 $ 22,201,430 $ 2,446,176 $ 45,488,137
Class B................ 116,044,213 49,277,815 12,847,028 3,565,687 37,748,066 4,681,791 14,832,611
Class C................ 6,919,897 7,307,198 0 29,406 0 0 0
Class Y................ 57,636,061 364,884,577 66,192,696 16,005,414 222,943,343 50,067,650 106,090,505
- ------------------------------------------------------------------------------------------------------------------------
Total net assets........ $403,075,839 $539,950,762 $84,361,100 $40,224,092 $282,892,839 $57,195,617 $166,411,253
- ------------------------------------------------------------------------------------------------------------------------
Shares outstanding
Class A................ 22,078,782 13,159,861 562,548 2,006,455 2,279,034 258,405 4,720,621
Class B................ 11,516,313 5,473,279 1,358,094 346,906 3,874,986 494,632 1,539,263
Class C................ 686,729 811,580 0 2,861 0 0 0
Class Y................ 5,719,899 40,528,079 6,997,525 1,557,210 22,886,059 5,289,161 11,009,760
- ------------------------------------------------------------------------------------------------------------------------
Net asset value per
share
Class A................ $ 10.08 $ 9.00 $ 9.46 $ 10.28 $ 9.74 $ 9.47 $ 9.64
- ------------------------------------------------------------------------------------------------------------------------
Class A--Offering price
(based on sales charge
of 4.75%)............. $ 10.58 $ 9.45 $ 9.93 $ 10.79 $ 10.23 $ 9.94 $ 10.12
- ------------------------------------------------------------------------------------------------------------------------
Class B................ $ 10.08 $ 9.00 $ 9.46 $ 10.28 $ 9.74 $ 9.47 $ 9.64
- ------------------------------------------------------------------------------------------------------------------------
Class C................ $ 10.08 $ 9.00 -- $ 10.28 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Class Y................ $ 10.08 $ 9.00 $ 9.46 $ 10.28 $ 9.74 $ 9.47 $ 9.64
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
51
<PAGE>
EVERGREEN
Southern State Municipal Bond Funds
Statements of Operations
Six Months Ended February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
North South
Florida High Georgia Maryland Carolina Carolina Virginia
Income Fund Florida Fund Fund Fund Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income
Interest.............. $ 14,130,318 $ 15,657,986 $ 2,487,664 $ 1,086,606 $ 8,201,661 $ 1,726,375 $ 4,848,618
- ----------------------------------------------------------------------------------------------------------------------
Expenses
Advisory fee.......... 1,250,674 1,360,409 207,276 93,637 694,713 147,746 414,262
Distribution Plan
expenses............. 959,767 473,121 73,833 44,778 234,381 28,118 134,528
Administrative
services fees........ 99,388 131,885 20,203 9,360 67,556 13,882 40,556
Transfer agent fee.... 126,639 79,106 9,408 18,295 23,032 3,466 41,297
Trustees' fees and
expenses............. 4,505 5,382 878 416 2,990 818 1,506
Printing and postage
expenses............. 19,917 27,217 4,856 1,800 13,054 2,933 8,206
Custodian fee......... 72,324 93,522 14,281 5,776 43,663 10,282 27,062
Registration and
filing fees.......... 27,243 19,225 18,715 1,974 15,815 6,728 32,243
Professional fees..... 13,800 15,900 8,598 7,523 11,209 8,336 9,645
Organization
expenses............. 1,767 0 0 0 0 0 0
Other................. 13,199 6,120 2,670 5,073 14,308 1,110 2,472
- ----------------------------------------------------------------------------------------------------------------------
Total expenses........ 2,589,223 2,211,887 360,718 188,632 1,120,721 223,419 711,777
Less: Fee waivers..... (291,004) (930,237) (146,810) (32,464) (429,321) (48,815) (273,766)
Expense reductions.. (8,079) (10,179) (1,546) (846) (5,182) (1,106) (3,129)
- ----------------------------------------------------------------------------------------------------------------------
Net expenses.......... 2,290,140 1,271,471 212,362 155,322 686,218 173,498 434,882
- ----------------------------------------------------------------------------------------------------------------------
Net investment
income............... 11,840,178 14,386,515 2,275,302 931,284 7,515,443 1,552,877 4,413,736
- ----------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gains or
losses on securities
Net realized losses on
securities........... (15,744,542) (15,005,712) (1,250,883) (389,595) (4,977,263) (615,041) (1,808,407)
- ----------------------------------------------------------------------------------------------------------------------
Net change in
unrealized gains or
losses on
securities........... (10,054,145) (5,964,135) (1,724,357) (786,255) (6,549,876) (1,339,869) (3,219,504)
- ----------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized losses on
securities........... (25,798,687) (20,969,847) (2,975,240) (1,175,850) (11,527,139) (1,954,910) (5,027,911)
- ----------------------------------------------------------------------------------------------------------------------
Net decrease in net
assets resulting from
operations........... $(13,958,509) $ (6,583,332) $ (699,938) $ (244,566) $ (4,011,696) $ (402,033) $ (614,175)
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
52
<PAGE>
EVERGREEN
Southern State Municipal Bond Funds
Statements of Changes in Net Assets
Six Months Ended February 29, 2000 (Unaudited)
<TABLE>
<CAPTION>
North South
Florida High Florida Maryland Carolina Carolina Virginia
Income Fund Fund Georgia Fund Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Operations
Net investment income.. $ 11,840,178 $ 14,386,515 $ 2,275,302 $ 931,284 $ 7,515,443 $ 1,552,877 $ 4,413,736
Net realized losses on
securities............ (15,744,542) (15,005,712) (1,250,883) (389,595) (4,977,263) (615,041) (1,808,407)
Net change in
unrealized gains or
losses on securities.. (10,054,145) (5,964,135) (1,724,357) (786,255) (6,549,876) (1,339,869) (3,219,504)
- --------------------------------------------------------------------------------------------------------------------------
Net decrease in net
assets resulting from
operations............ (13,958,509) (6,583,332) (699,938) (244,566) (4,011,696) (402,033) (614,175)
- --------------------------------------------------------------------------------------------------------------------------
Distributions to
shareholders from
Net investment income
Class A................ (6,914,986) (3,200,642) (120,922) (499,845) (487,139) (57,104) (1,175,394)
Class B................ (2,978,230) (1,117,680) (293,623) (67,829) (896,090) (101,677) (313,770)
Class C................ (157,804) (175,380) 0 (563) 0 0 0
Class Y................ (1,648,770) (9,769,818) (1,833,843) (348,776) (6,081,152) (1,373,546) (2,899,064)
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 (29,724) 0 0 0 0 0
Class Y................ 0 (1,264,385) 0 0 (1,441,627) (411,495) (221,231)
- --------------------------------------------------------------------------------------------------------------------------
Total distributions to
shareholders.......... (11,699,790) (16,154,036) (2,248,388) (917,013) (9,284,082) (1,998,794) (4,732,010)
- --------------------------------------------------------------------------------------------------------------------------
Capital share
transactions
Proceeds from shares
sold.................. 78,298,219 64,581,749 12,478,613 5,875,818 29,162,227 7,931,436 13,722,517
Net asset value of
shares issued in
reinvestment of
distributions......... 4,403,061 3,602,681 287,312 435,558 2,797,899 575,570 1,377,110
Payment for shares
redeemed.............. (114,215,825) (118,965,722) (16,049,986) (4,698,760) (47,279,069) (17,941,360) (24,806,903)
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... (31,514,545) (50,781,292) (3,284,061) 1,612,616 (15,318,943) (9,434,354) (9,707,276)
- --------------------------------------------------------------------------------------------------------------------------
Total increase
(decrease) in net
assets............... (57,172,844) (73,518,660) (6,232,387) 451,037 (28,614,721) (11,835,181) (15,053,461)
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.......... $403,075,839 $539,950,762 $ 84,361,100 $40,224,092 $282,892,839 $ 57,195,617 $166,411,253
- --------------------------------------------------------------------------------------------------------------------------
Undistributed net
investment income...... $ 199,433 $ 184,204 $ 28,700 $ 18,051 $ 51,761 $ 28,008 $ 32,443
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
53
<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.
54
<PAGE>
EVERGREEN
Combined Notes to Financial Statements (Unaudited)
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 maximum front-end sales charge of 4.75%.
Class B and Class C shares are sold without a front-end sales charge, but pay a
higher ongoing distribution fee than Class A. Class B shares are sold subject
to a contingent deferred sales charge that is payable upon redemption and de-
creases depending on how long the shares have been held. Class B shares pur-
chased after January 1, 1997 will automatically convert to Class A shares after
seven years. Class B shares purchased prior to January 1, 1997 follow the con-
version rights at the time the shares were purchased. Class C shares are sold
subject to a 2.00% contingent deferred sales charge payable on shares redeemed
within one year after the month of purchase and a 1.00% contingent deferred
sales charge if such shares are redeemed within two years after the month of
purchase. Class C shares purchased prior to February 1, 2000 follow the contin-
gent deferred sales charge schedule at the time the shares were initially pur-
chased. Class Y shares are sold at net asset value and are not subject to con-
tingent deferred sales charges or distribution fees. Class Y shares are sold
only to investment advisory clients of First Union Corporation ("First Union")
and its affiliates, certain institutional investors or Class Y shareholders of
record of certain other funds managed by First Union and its affiliates as of
December 30, 1994.
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 from an independent pricing service (including restricted securities) are
valued at fair value as determined in good faith according to procedures estab-
lished by the Board of Trustees.
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.
55
<PAGE>
EVERGREEN
Combined Notes to Financial Statements(Unaudited) (continued)
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.
D. Federal Taxes
The Funds have qualified and intend to continue to qualify as regulated invest-
ment companies under the Internal Revenue Code of 1986, as amended (the
"Code"). Thus, the Funds will not incur any federal income tax liability since
they are expected to distribute all of their net investment company taxable in-
come, net tax-exempt income and net capital gains, if any, to their sharehold-
ers. The Funds also intend to avoid any excise tax liability by making the re-
quired distributions under the Code. Accordingly, no provision for federal
taxes is required. To the extent that realized capital gains can be offset by
capital loss carryforwards, it is each Fund's policy not to distribute such
gains.
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. 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. The significant differences between financial statement
amounts available for distributions and distributions made in accordance with
income tax regulations are primarily due to differing treatment of market dis-
count 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 Fund are redeemed by any holder during the five-year amorti-
zation period, redemption proceeds will be reduced by any unamortized organiza-
tion expenses in the same proportion as the number of initial shares being re-
deemed bears to the number of initial shares outstanding at the time of the re-
demption.
3. INVESTMENT ADVISORY AGREEMENT AND OTHER AFFILIATED TRANSACTIONS
First Union National Bank ("FUNB"), a subsidiary of First Union, serves as the
investment advisor to each Fund and is paid a management fee that is computed
daily and paid monthly at an annual rate of 0.42% of the average daily net as-
sets 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 Janu-
ary 3, 2000, the management fee was computed daily at an annual 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 Jan-
uary 3, 2000, the management fee was computed daily at an annual rate of 0.60%
of the average daily net assets of the Florida High Income Fund.
56
<PAGE>
EVERGREEN
Combined Notes to Financial Statements (Unaudited)
Combined Notes to Financial Statements (Unaudited) (continued)
During the six months ended February 29, 2000, the amount of investment advi-
sory fees waived by the investment advisor and the impact on each Fund's ex-
pense ratio represented as a percentage of its average net assets were as fol-
lows:
<TABLE>
<CAPTION>
Fees % of Average
Waived Net Assets
-------------------------
<S> <C> <C>
Florida High Income Fund........ $291,004 0.13%
Florida Fund.................... 826,487 0.28%
Georgia Fund.................... 146,810 0.33%
Maryland Fund................... 32,464 0.16%
North Carolina Fund............. 429,321 0.29%
South Carolina Fund............. 48,815 0.16%
Virginia Fund................... 273,766 0.31%
</TABLE>
Evergreen Investment Services ("EIS"), an indirect, wholly-owned subsidiary of
FUNB, is the administrator and The BISYS Group, Inc. ("BISYS") serves as the
sub-administrator to the Funds. As administrator, EIS provides the Funds with
facilities, equipment and personnel. As sub-administrator to the Funds, BISYS
provides the officers of the Funds. Officers of the Funds and affiliated Trust-
ees receive no compensation directly from the Funds.
For its services, the Funds pay the administrator and sub-administrator a com-
bined fee at the annual rate of 0.10% of each Fund's average daily net assets.
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 are 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 six months ended February 29, 2000, the Funds paid or accrued the
following amounts for administrative and sub-administrative services:
<TABLE>
<CAPTION>
Administration Sub-administration
Fee Fee
---------------------------------------
<S> <C> <C>
Florida High Income
Fund............... $ 90,228 $9,160
Florida Fund........ 122,121 9,764
Georgia Fund........ 18,088 2,115
Maryland Fund....... 8,554 806
North Carolina
Fund............... 62,580 4,976
South Carolina
Fund............... 12,379 1,503
Virginia Fund....... 36,979 3,577
</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, Class A incurs distribution fees equal to 0.25% of the average
daily net asset of the class, all of which is used to pay for shareholder serv-
ice fees. Class B and Class C incur distribution fees equal to 1.00% of the av-
erage daily net assets of each class. Of this amount, 0.25% of the distribution
fees incurred is used to pay for shareholder service fees and 0.75% is used to
pay for distribution-related costs. Distribution Plan expenses are calculated
daily and paid at least quarterly.
57
<PAGE>
EVERGREEN
Combined Notes to Financial Statements(Unaudited) (continued)
For the six months ended February 29, 2000, amounts paid or accrued to EDI pur-
suant to each Fund's Class A, Class B, and Class C Distribution Plans as well
as distribution fees waived and the impact of the waiver as a percentage of the
average net assets of the class, were as follows:
<TABLE>
<CAPTION>
Fees
Waived % of Average
Class A Class B Class C Class A Net Assets
-----------------------------------------------
<S> <C> <C> <C> <C> <C>
Florida High
Income Fund.... $309,806 $617,186 $32,775 $ 0 0.00%
Florida Fund.... 158,815 271,709 42,597 103,750 0.16%
Georgia Fund.... 5,938 67,895 0 0 0.00%
Maryland Fund... 27,058 17,574 146 0 0.00%
North Carolina
Fund........... 24,213 210,168 0 0 0.00%
South Carolina
Fund........... 2,965 25,153 0 0 0.00%
Virginia Fund... 59,478 75,050 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>
Six Months Ended Year Ended
February 29, 2000 August 31, 1999
------------------------ ------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............... 2,747,053 $ 28,495,918 6,022,065 $ 67,119,861
Automatic conversion of
Class B shares to Class A
shares................... 93,432 947,739 0 0
Shares issued in
reinvestment of
distributions............ 266,287 2,742,964 634,153 7,055,563
Shares redeemed........... (6,270,543) (64,611,194) (6,206,580) (68,781,003)
- -------------------------------------------------------------------------------
Net increase (decrease)... (3,163,771) (32,424,573) 449,638 5,394,421
- -------------------------------------------------------------------------------
Class B
Shares sold............... 1,137,215 11,762,022 4,429,234 49,368,416
Shares issued in
reinvestment of
distributions............ 142,733 1,468,814 247,877 2,753,042
Automatic conversion of
Class B shares to Class A
shares................... (93,432) (947,739) 0 0
Shares redeemed........... (1,865,655) (19,205,438) (1,659,509) (18,418,450)
- -------------------------------------------------------------------------------
Net increase (decrease)... (679,139) (6,922,341) 3,017,602 33,703,008
- -------------------------------------------------------------------------------
Class C
Shares sold............... 196,924 2,024,635 640,928 7,135,431
Shares issued in
reinvestment of
distributions............ 8,707 89,521 9,404 103,941
Shares redeemed........... (150,875) (1,565,670) (115,908) (1,287,087)
- -------------------------------------------------------------------------------
Net increase.............. 54,756 548,486 534,424 5,952,285
- -------------------------------------------------------------------------------
Class Y
Shares sold............... 3,475,890 36,015,644 3,610,375 40,212,195
Shares issued in
reinvestment of
distributions............ 9,852 101,762 23,071 256,266
Shares redeemed........... (2,786,502) (28,833,523) (1,202,544) (13,380,019)
- -------------------------------------------------------------------------------
Net increase.............. 699,240 7,283,883 2,430,902 27,088,442
- -------------------------------------------------------------------------------
Net increase (decrease)... $(31,514,545) $ 72,138,156
- -------------------------------------------------------------------------------
</TABLE>
58
<PAGE>
EVERGREEN
Combined Notes to Financial Statements(Unaudited) (continued)
Florida Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
February 29, 2000 August 31, 1999
------------------------ ------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............... 1,112,974 $ 10,217,732 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............ 160,966 1,487,050 526,975 5,201,492
Shares redeemed........... (2,912,412) (26,667,084) (4,237,683) (41,508,980)
- -------------------------------------------------------------------------------
Net decrease.............. (1,480,626) (13,535,126) (1,543,907) (14,826,678)
- -------------------------------------------------------------------------------
Class B
Shares sold............... 242,765 2,214,023 1,015,953 10,084,761
Shares issued in
reinvestment of
distributions............ 68,745 628,468 208,178 2,053,007
Automatic conversion of
Class B shares to Class A
shares................... (157,846) (1,427,176) 0 0
Shares redeemed........... (1,064,243) (9,741,784) (1,357,332) (13,327,563)
- -------------------------------------------------------------------------------
Net decrease.............. (910,579) (8,326,469) (133,201) (1,189,795)
- -------------------------------------------------------------------------------
Class C
Shares sold............... 52,958 488,290 171,468 1,716,585
Shares issued in
reinvestment of
distributions............ 8,755 80,182 29,587 291,797
Shares redeemed........... (223,093) (2,025,854) (111,271) (1,080,242)
- -------------------------------------------------------------------------------
Net increase (decrease)... (161,380) (1,457,382) 89,784 928,140
- -------------------------------------------------------------------------------
Class Y
Shares sold............... 5,660,665 51,661,704 7,963,457 78,325,103
Shares issued in
reinvestment of
distributions............ 152,698 1,406,981 594,102 5,884,793
Shares redeemed........... (8,797,103) (80,531,000) (6,315,912) (61,923,542)
- -------------------------------------------------------------------------------
Net increase (decrease)... (2,983,740) (27,462,315) 2,241,647 22,286,354
- -------------------------------------------------------------------------------
Net increase (decrease)... $(50,781,292) $ 7,198,021
- -------------------------------------------------------------------------------
</TABLE>
Georgia Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
February 29, 2000 August 31, 1999
------------------------ ----------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold................. 98,011 $ 942,982 305,966 $ 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.............. 7,983 76,235 13,683 139,514
Shares redeemed............. (42,832) (408,815) (253,867) (2,575,284)
- ------------------------------------------------------------------------------
Net increase................ 117,001 1,119,817 65,782 687,410
- ------------------------------------------------------------------------------
Class B
Shares sold................. 115,241 1,099,291 381,699 3,892,607
Shares issued in
reinvestment of
distributions.............. 20,466 195,582 42,933 438,417
Automatic conversion of
Class B shares to Class A
shares..................... (53,839) (509,415) 0 0
Shares redeemed............. (180,019) (1,720,989) (181,382) (1,848,612)
- ------------------------------------------------------------------------------
Net increase (decrease)..... (98,151) (935,531) 243,250 2,482,412
- ------------------------------------------------------------------------------
Class Y
Shares sold................. 1,095,523 10,436,340 1,554,435 15,957,182
Shares issued in
reinvestment of
distributions.............. 1,617 15,495 30,615 315,368
Shares redeemed............. (1,459,727) (13,920,182) (757,013) (7,720,999)
- ------------------------------------------------------------------------------
Net increase (decrease)..... (362,587) (3,468,347) 828,037 8,551,551
- ------------------------------------------------------------------------------
Net increase (decrease)..... $ (3,284,061) $11,721,373
- ------------------------------------------------------------------------------
</TABLE>
59
<PAGE>
EVERGREEN
Combined Notes to Financial Statements(Unaudited) (continued)
Maryland Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
February 29, 2000 August 31, 1999
--------------------- ---------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold..................... 44,876 $ 465,848 293,892 $ 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.................. 36,396 377,243 87,231 962,253
Shares redeemed................. (260,442) (2,700,665) (414,785) (4,586,001)
- -------------------------------------------------------------------------------
Net decrease.................... (177,560) (1,841,028) (33,662) (358,788)
- -------------------------------------------------------------------------------
Class B
Shares sold..................... 57,140 595,487 264,441 2,922,980
Shares issued in reinvestment of
distributions.................. 5,053 52,334 6,593 72,249
Automatic conversion of Class B
shares to Class A shares....... (1,610) (16,546) 0 0
Shares redeemed................. (38,679) (401,380) (34,744) (376,172)
- -------------------------------------------------------------------------------
Net increase.................... 21,904 229,895 236,290 2,619,057
- -------------------------------------------------------------------------------
<CAPTION>
December 23, 1998
(Commencement of
Six Months Ended Class Operations) to
February 29, 2000 August 31, 1999
--------------------- ---------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class C
Shares sold..................... 1 14 3,217 35,602
Shares issued in reinvestment of
distributions.................. 55 565 43 469
Shares redeemed................. 0 0 (455) (4,992)
- -------------------------------------------------------------------------------
Net increase.................... 56 579 2,805 31,079
- -------------------------------------------------------------------------------
<CAPTION>
Six Months Ended Year Ended
February 29, 2000 August 31, 1999
--------------------- ---------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class Y
Shares sold..................... 464,174 4,814,469 978,698 10,700,374
Shares issued in reinvestment of
distributions.................. 524 5,416 3,715 41,234
Shares redeemed................. (153,751) (1,596,715) (204,492) (2,243,006)
- -------------------------------------------------------------------------------
Net increase.................... 310,947 3,223,170 777,921 8,498,602
- -------------------------------------------------------------------------------
Net increase.................... $ 1,612,616 $10,789,950
- -------------------------------------------------------------------------------
</TABLE>
North Carolina Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
February 29, 2000 August 31, 1999
------------------------ ------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............... 831,332 $ 8,231,633 548,243 $ 5,825,507
Automatic conversion of
Class B shares to Class A
shares................... 298,250 2,903,224 0 0
Shares issued in
reinvestment of
distributions............ 38,968 384,038 57,810 615,583
Shares redeemed........... (655,632) (6,461,060) (294,568) (3,140,795)
- -------------------------------------------------------------------------------
Net increase.............. 512,918 5,057,835 311,485 3,300,295
- -------------------------------------------------------------------------------
Class B
Shares sold............... 70,914 695,099 424,453 4,543,408
Shares issued in
reinvestment of
distributions............ 84,140 830,836 153,483 1,635,617
Automatic conversion of
Class B shares to Class A
shares................... (298,250) (2,903,224) 0 0
Shares redeemed........... (501,605) (4,964,256) (608,158) (6,461,589)
- -------------------------------------------------------------------------------
Net decrease.............. (644,801) (6,341,545) (30,222) (282,564)
- -------------------------------------------------------------------------------
Class Y
Shares sold............... 2,059,930 20,235,495 3,440,359 36,469,391
Shares issued in
reinvestment of
distributions............ 159,681 1,583,025 129,785 1,392,155
Shares redeemed........... (3,627,763) (35,853,753) (2,914,981) (30,999,492)
- -------------------------------------------------------------------------------
Net increase (decrease)... (1,408,152) (14,035,233) 655,163 6,862,054
- -------------------------------------------------------------------------------
Net increase (decrease)... $(15,318,943) $ 9,879,785
- -------------------------------------------------------------------------------
</TABLE>
60
<PAGE>
EVERGREEN
Combined Notes to Financial Statements(Unaudited) (continued)
South Carolina Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
February 29, 2000 August 31, 1999
------------------------ ------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............... 21,942 $ 209,959 106,193 $ 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............ 4,738 45,472 7,645 78,365
Shares redeemed........... (27,000) (256,232) (44,615) (454,257)
- -------------------------------------------------------------------------------
Net increase.............. 22,184 212,287 69,223 713,404
- -------------------------------------------------------------------------------
Class B
Shares sold............... 23,787 224,798 177,649 1,816,333
Shares issued in
reinvestment of
distributions............ 10,596 101,675 15,297 156,799
Automatic conversion of
Class B shares to Class A
shares................... (22,504) (213,088) 0 0
Shares redeemed........... (65,387) (626,458) (79,709) (816,909)
- -------------------------------------------------------------------------------
Net increase (decrease)... (53,508) (513,073) 113,237 1,156,223
- -------------------------------------------------------------------------------
Class Y
Shares sold............... 789,227 7,496,679 934,454 9,551,504
Shares issued in
reinvestment of
distributions............ 44,409 428,423 41,643 430,302
Shares redeemed........... (1,777,670) (17,058,670) (1,091,620) (11,226,604)
- -------------------------------------------------------------------------------
Net decrease.............. (944,034) (9,133,568) (115,523) (1,244,798)
- -------------------------------------------------------------------------------
Net increase (decrease)... $ (9,434,354) $ 624,829
- -------------------------------------------------------------------------------
</TABLE>
Virginia Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
February 29, 2000 August 31, 1999
------------------------ ------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............... 362,601 $ 3,513,114 856,960 $ 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............ 88,097 855,856 199,536 2,060,558
Shares redeemed........... (840,128) (8,153,622) (1,178,483) (12,163,094)
- -------------------------------------------------------------------------------
Net decrease.............. (349,745) (3,403,089) (121,987) (1,236,955)
- -------------------------------------------------------------------------------
Class B
Shares sold............... 147,417 1,429,139 836,344 8,632,698
Shares issued in
reinvestment of
distributions............ 26,294 255,452 41,468 426,711
Automatic conversion of
Class B shares to Class A
shares................... (39,685) (381,563) 0 0
Shares redeemed........... (146,163) (1,416,938) (180,842) (1,855,222)
- -------------------------------------------------------------------------------
Net increase (decrease)... (12,137) (113,910) 696,970 7,204,187
- -------------------------------------------------------------------------------
Class Y
Shares sold............... 900,818 8,780,264 3,026,297 31,207,477
Shares issued in
reinvestment of
distributions............ 27,200 265,802 77,779 807,469
Shares redeemed........... (1,573,604) (15,236,343) (1,578,685) (16,310,595)
- -------------------------------------------------------------------------------
Net increase (decrease)... (645,586) (6,190,277) 1,525,391 15,704,351
- -------------------------------------------------------------------------------
Net increase (decrease)... $ (9,707,276) $ 21,671,583
- -------------------------------------------------------------------------------
</TABLE>
61
<PAGE>
EVERGREEN
Combined Notes to Financial Statements(Unaudited) (continued)
6. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of investment securities (excluding
short-term securities) were as follows for the six months ended February 29,
2000:
<TABLE>
<CAPTION>
Cost of Purchases Proceeds from Sales
-------------------------------------
<S> <C> <C>
Florida High Income Fund.. $ 92,887,410 $129,438,445
Florida Fund.............. 174,671,654 189,035,878
Georgia Fund.............. 14,545,085 14,490,881
Maryland Fund............. 9,460,900 9,113,674
North Carolina Fund....... 23,085,464 35,741,506
South Carolina Fund....... 13,568,758 23,339,085
Virginia Fund............. 42,940,120 47,791,322
</TABLE>
As of August 31, 1999, the Florida Fund had a capital loss carryforward for
federal income tax purposes of approximately $1,899,000 which expires as fol-
lows: $810,000 expiring in 2001 and $1,089,000 expiring in 2004. Florida Fund's
capital loss carryforward was created as a result of the January 26, 1998 ac-
quisition of substantially all the assets and assumption of certain liabilities
of Evergreen Florida Tax Free Fund in exchange for Florida Fund shares. In ac-
cordance with income tax regulations, certain Florida Fund gains may not be
used to offset this capital loss carryforward.
Capital losses incurred after October 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
fiscal year ended August 31, 1999, Florida High Income Fund, Georgia Fund and
Maryland Fund have incurred and elected to defer $1,725,881, $494,512 and
$151,245 of such capital losses, respectively.
7. EXPENSE REDUCTIONS
The Funds have entered into expense offset arrangements with ESC and their cus-
todian whereby credits realized as a result of uninvested cash balances were
used to reduce a portion of each Fund's related expenses. The assets deposited
with ESC and the custodian under these expense-offset arrangements could have
been invested in income-producing assets. The amount of expense reductions re-
ceived by each Fund and the impact on each Fund's annualized expense ratio rep-
resented as a percentage of its average net assets were as follows:
<TABLE>
<CAPTION>
Total
Expense
Reductions % of Average
Received Net Assets
---------------------
<S> <C> <C>
Florida High Income Fund................ $8,079 0.00%
Florida Fund............................ 10,179 0.00%
Georgia Fund............................ 1,546 0.00%
Maryland Fund........................... 846 0.00%
North Carolina Fund..................... 5,182 0.00%
South Carolina Fund..................... 1,106 0.00%
Virginia Fund........................... 3,129 0.00%
</TABLE>
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.
62
<PAGE>
EVERGREEN
Combined Notes to Financial Statements(Unaudited) (continued)
9. FINANCING AGREEMENT
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.
During the six months ended February 29, 2000, the Florida High Income Fund had
average borrowings outstanding of $268,177 at a rate of 6.85% and paid interest
of $9,110.
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.
63
<PAGE>
Evergreen Funds
Money Market
Treasury Money Market Fund
Money Market Fund
Municipal Money Market Fund
Florida Municipal Money Market Fund
New Jersey Municipal Money Market Fund
Pennsylvania Municipal Money Market Fund
Tax Advantaged
Short Intermediate Municipal Fund
High Grade Municipal Bond Fund
Municipal Bond Fund
Connecticut Municipal Bond Fund
Florida Municipal Bond Fund
Florida High Income 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
Tax-Free High Income Fund
Income
Capital Preservation and Income Fund
Short-Duration Income Fund
Intermediate Term Bond Fund
U.S. Government Fund
Quality Income Fund
Diversified Bond Fund
Strategic Income Fund
High Income Fund
High Yield Bond Fund
Balanced
Tax Strategic Foundation Fund
Foundation Fund
Capital Balanced Fund
Balanced Fund
Growth & Income
Utility Fund
Income and Growth Fund
Equity Income Fund
Value Fund
Blue Chip Fund
Growth and Income Fund
Small Cap Value Fund
Select Equity Index Fund
Domestic Growth
Tax Strategic Equity Fund
Capital Growth Fund
Stock Selector Fund
Evergreen Fund
Strategic Growth Fund
Masters Fund
Omega Fund
Small Company Growth Fund
Growth Fund
Aggressive Growth Fund
Select Special Equity Fund
Global International
Global Leaders Fund
Perpetual Global Fund
International Growth Fund
Perpetual International Fund
Global Opportunities Fund
Precious Metals Fund
Emerging Markets Growth Fund
Latin America Fund
Express Line
800.346.3858
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