[DESCRIPTION] ENTIRE TEXT PORTION
THIS DOCUMENT IS A COPY OF THE 10-Q FILED ON NOVEMBER 14, 1994 PURSUANT TO A
RULE 201 TEMPORARY HARDSHIP EXEMPTION.
November 14, 1994
Securities and Exchange Commission
450 5th Street
Washington, D.C. 20549
RE: CHITTENDEN CORPORATION
REGISTRATION NO. 0-7974
QUARTERLY REPORT (ON FORM 10-Q)
Gentlemen:
Pursuant to the requirements of Rule 131-13 under the Securities Exchange
Act of 1934, there is appended to this transmittal, an electronic file of
the quarterly report (on Form 10-Q) of Chittenden Corporation, Two
Burlington Square, Burlington, Vermont 05401 for the nine months ended
September 30, 1994.
If you have any questions concerning this quarterly report, please
telephone the undersigned at (802) 660-1410.
Kindly acknowledge receipt of this letter by Compuserve E-Mail.
Thank you.
Very truly yours,
F. Sheldon Prentice
Secretary
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Nine Months Ended September 30, 1994
Commission File Number 0-7974
CHITTENDEN CORPORATION
(Exact Name of Registrant as Specified in its Charter)
VERMONT 03-0228404
(State of Incorporation) (IRS Employer Identification No.)
TWO BURLINGTON SQUARE
BURLINGTON, VERMONT 05401
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number: (802) 658-4000
NOT APPLICABLE
Former Name, Former Address and Formal Fiscal Year
If Changed Since Last Report
Indicate by checkmark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
YES X NO
At September 30, 1994, there were 6,479,583 shares of the Corporations's
$1.00 par value common stock issued, with 6,238,181 shares outstanding.
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1994
Note 1 - Accounting Policies
The Company's significant accounting policies are described in Note 1
of the Notes to Consolidated Financial Statements included in its 1993
Annual Report on Form 10-K filed with the Securities and Exchange
Commission. For interim reporting purposes, the Company follows the same
accounting policies and considers each interim period as an integral part
of an annual period.
The financial information included herein is unaudited; however, such
information reflects all adjustments (consisting of normal recurring
accruals) which are, in the opinion of management, necessary for a fair
statement of results for the interim periods. Interim results are not
necessarily indicative of results to be expected for the entire year.
Note 2 - Adoption of Statement of Financial Accounting Standards No. 115,
"Accounting for Certain Investments in Debt and Equity Securities."
The company adopted SFAS 115 on January 1, 1994. Under SFAS 115,
investment securities are now classified under three different categories -
trading, available for sale, and held for investment. The Company's
investment portfolio at September 30, 1994 consisted primarily of the
available for sale category. At September 30, 1994, the Company reported a
decrease in stockholders' equity of $4,111,000 (net of an income tax effect
of $2,214,000) to reflect the valuation allowance for net unrealized losses
on investment securities available for sale.
Note 3 - Bank of Western Massachusetts 8-K Filing Disclosure.
On August 17, 1994 Chittenden Corporation (NASDAQ-CNDN) and The Bank of
Western Massachusetts, Springfield, Massachusetts announced that they had
signed a definitive agreement whereby Chittenden would acquire The Bank of
Western Massachusetts for approximately $25.5 million in stock and cash.
Consummation of the transaction is subject to appropriate regulatory and
stockholder approvals and is expected to occur in the second quarter of
1995.
Note 4 - Subsequent Event--Stock Buyback
On October 26 and November 7, 1994, Chittenden acquired 226,875 and
100,000 shares, respectively, of its own common stock for a total of $6.6
million.
Note 5 - Resolved Legal Claim
Walsh vs. Chittenden Corp., et al, was a class action in which
plaintiff represented himself and other persons who purchased Chittenden
common stock from March 29, 1989 through August 15, 1990. Plaintiff named
Chittenden and two of its former executive officers in the suit filed on
August 9, 1991 in the United States District Court of Vermont. The
plaintiff claimed violations of Federal securities laws on the grounds that
Chittenden allegedly withheld timely disclosure of developments affecting
its loan portfolio. Plaintiff's counsel and Chittenden entered into a
settlement agreement which provided among other things, that a fund of $1.5
million be established to resolve any claims of members of the class,
including plaintiff's counsel fees. This settlement agreement was approved
by the Court July 1, 1994. Taking into consideration certain payments from
an insurance carrier, Chittenden's contribution to the settlement fund had
no material effect on Chittenden's consolidated financial statements.
<PAGE>
PART I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis
of Financial Condition and
Results from Operations
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Chittenden Corporation's net income for the third quarter of 1994
increased 41% from the 1993 level to $4.0 million, or $0.63 per share. Net
income for the first nine months of 1994 totaled $11.3 million, or $1.77
per share, up 46% from last year. Return on average assets was 1.26% for
the first nine months of 1994, compared with 0.88% last year. Return on
average equity was 14.95% for the first nine months of 1994, up from 11.24%
for the same period in 1993.
Net interest income on a fully taxable equivalent basis was $40.6
million, up $2.5 million from the amount earned during the first nine
months of 1993. Contributing to this increase were both a higher net yield
on earning assets, up 16 basis points from a year ago to 4.87%, and higher
average earning assets, up $33.4 million from a year ago. For the third
quarter of 1994, taxable equivalent net interest income was $14.3 million,
up $1.3 million from the third quarter 1993 level. The net yield for the
1994 quarter was 5.05%, up from 4.71% in 1993. Average earning assets for
the third quarter of 1994 were $1.1 billion, unchanged from the same period
a year ago.
Provisions for and activity in the allowance for loan losses are
summarized as follows:
<TABLE>
<CAPTION>
Three Months Nine Months
Ended September 30, Ended September 30,
1994 1993 1994 1993
(In Thousands)
<S> <C> <C> <C> <C>
Beginning Allowance
for Possible Loan
Losses Balance $18,927 $17,535 $18,917 $16,372
Provision for
Possible Loan Losses 1,000 1,650 3,400 4,950
Loans Charged Off (1,211) (1,379) (4,088) (3,965)
Loan Recoveries 373 230 860 679
------- ------- ------- -------
Ending Allowance for
Possible Loan Losses
Balance $19,089 $18,036 $19,089 $18,036
======= ======= ======= =======
</TABLE>
Noninterest income amounted to $5.6 million for the third quarter and
$17.0 million for the first nine months of 1994, down 13% and 7%,
respectively, from the same periods a year ago. Trust Department revenue,
at $3.0 million for the nine month period and $990,000 for the third
quarter, remained at the same level as a year ago. Service charges on
deposit accounts, at $3.5 million for the first nine months and $1.1
million for the quarter, were up from a year ago due to higher levels of
transaction activity and selected pricing actions. Gains on sales of
mortgage loans were $3.8 million lower than for the nine month period last
year, and down $1.5 million for the third quarter, reflecting a lower
volume of mortgage sales as refinancing activity was essentially eliminated
because of higher interest rates, and lower margins were recorded on the
sales which did occur. Chittenden continues to sell most of its fixed rate
residential mortgage production on the secondary market. Mortgage
servicing revenue was up 104% for the first nine months and 201% for the
third quarter of 1994 compared with the year-ago periods, reflecting the
lack of amortization in 1994 of deferred premiums from previous loan sales,
and a 16 % increase in the mortgage servicing portfolio to $713.8 million
at September 30, 1994. Revenue related to credit card activities was up
47% for the first nine months and 37% for the third quarter of 1994,
reflecting continued growth in cardholder and merchant areas.
For the first nine months of 1994, noninterest expenses were $36.5
million, down 5% from the comparable 1993 level. Salary expense for the
first nine months was essentially unchanged from the same period last year.
Employee benefits were up 11% for the first nine months reflecting higher
pension expense and incentive accruals related to bank performance.
Occupancy expenses were down 6% for the nine month period, reflecting
nonrecurrence of write-offs taken in 1993 as part of the VerBanc
acquisition. F.D.I.C. insurance premiums were down 10% for the first nine
months due to both a lower premium rate and lower deposit assessment
levels. Expenses connected with maintaining properties acquired by
foreclosure reflected net credits for the nine month period, due to
recovery of previously incurred expenses. Credit card expenses increased
by 44% for the nine month period, due to the higher volumes described
above. Other expenses declined by $1.8 million for the nine month period.
These declines were primarily due to the nonrecurrence of one-time expenses
associated with the VerBanc acquisition. For the third quarter of 1994,
noninterest expenses were $12.5 million, down 5% from the year-ago level.
The reasons for the decline were substantially the same as for the nine-
month improvement.
CREDIT QUALITY
Nonperforming assets include nonaccrual loans, restructured debt, and
foreclosed real estate (Other Real Estate Owned). As of September 30,
1994, nonperforming assets totaled $9.2 million, down from $20.1 million a
year earlier and $12.8 million at June 30, 1994. Approximately $4.7
million in payments received, charge-offs, and sales of OREO during the
quarter exceeded the addition of $1.1 million to total non-performing
assets. The allowance for loan losses stood at $19.1 million at September
30, 1994, up from $19.0 million at June 30, 1994, and $18.0 million at
September 30, 1993. The allowance was 2.20% of loans at September 30,
1994, compared with 2.25% at June 30, and 2.11% a year earlier.
A summary of credit quality follows:
<TABLE>
<CAPTION>
09/30/94 06/30/94 12/31/93 09/30/93
-------- -------- -------- --------
(In Thousands)
<S> <C> <C> <C> <C>
Nonaccrual Loans $7,926 $11,225 $12,756 $16,466
Restructured Debt 187 188 367 368
Other Real Estate
Owned (OREO) 1,125 1,388 2,619 3,954
------ ------- ------- -------
Total Nonperforming
Assets (NPA) $9,238 $12,801 $15,742 $20,788
====== ======= ======= =======
Loans Past Due 90 Days
or More and Still
Accruing Interest $1,073 $751 $1,453 $2,488
Allowance for Possible
Loan Losses 19,089 18,927 18,917 18,036
NPA as % of Loans plus
OREO 1.06% 1.52% 1.84% 2.42%
Loss Allowance as % of
Loans 2.20 2.25 2.22 2.11
Loss Allowance as % of
Nonperforming Loans 235.29 165.84 144.15 112.13
Loss Allowance as % of
NPA 206.64 147.86 120.17 86.76
</TABLE>
<PAGE>
CAPITAL
Common stockholders' equity totaled $103.1 million at September 30, 1994,
up from $97.7 million at the end of December, 1993. Compared with the year-end
level, current equity reflects the net income of $11.3 million posted for the
first nine months of 1994, the increase of $4.1 million in the valuation
allowance for net unrealized losses on investment securities available for
sale, and dividends paid to stockholders of $2.1 million. The valuation
allowance reflects adoption of Statement of Financial Accounting Standards No.
115, "Accounting for Certain Investments in Debt and Equity Securities."
"Tier One" capital, consisting entirely of common equity, measured 11.95%
of risk-weighted assets. Total capital, including the "Tier Two" allowance
for loan losses, stood at 13.32% of risk-weighted assets. The leverage
capital ratio was 8.83%. These ratios placed Chittenden in the
"well-capitalized" category according to regulatory standards.
LIQUIDITY
The Company's liquidity and rate sensitivity are monitored by the Bank's
asset and liability committee. This committee meets regularly to review and
direct the Bank's lending and investment activities, as well as its deposit-
gathering functions.
The measure of an institution's liquidity is its ability to meet its cash
commitments at all times with available cash or by conversion of other assets
to cash at a reasonable price. At September 30, 1994, the Company maintained
cash balances and short-term investments of approximately $98.5 million,
compared with $195.2 million at December 31, 1993. Investment securities
available or held for sale were $218.0 million at September 30, 1994, compared
with $150.7 million at year-end 1993. During the first nine months of 1994,
the Company continued to be an average daily net seller of Federal Funds.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
CHITTENDEN CORPORATION
November 14, 1994 BY:____________________________
DATE Paul A. Perrault
President and Chief
Executive Officer
November 14, 1994 BY:____________________________
DATE Nancy Rowden Brock
Treasurer
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
CHITTENDEN CORPORATION
November 14, 1994 BY: S/Paul A. Perrault
DATE Paul A. Perrault
President and Chief
Executive Officer
November 14, 1994 BY: S/Nancy Rowden Brock
DATE Nancy Rowden Brock
Treasurer
<TABLE>
Chittenden Corporation
Consolidated Balance Sheets (Unaudited)
<CAPTION>
September 30, December 31
1994 1993
------------- -----------
ASSETS (In Thousands)
<S> <C> <C>
Cash and Cash Equivalents $98,492 $195,163
Investment Securities Available For Sale 217,995 -
Investment Securities Held For Sale (Market
Value $152,205,000 in 1993) - 150,743
Investment Securities Held For Investment (Market
Value $9,741,000 in 1994; and $2,250,000 in 1993) 10,223 2,250
Loans:
Commercial 113,712 107,722
Real Estate:
Residential 397,883 398,014
Commercial 206,863 206,601
Construction 12,710 13,747
--------- ---------
Total Real Estate 617,456 618,362
Consumer 137,096 124,412
--------- ---------
Total Loans 868,264 850,496
Less: Allowance for Possible Loan Losses (19,089) (18,917)
--------- ---------
Net Loans 849,175 831,579
--------- ---------
Mortgage Loans Held for Sale 1,895 11,646
Premises and Equipment 16,433 16,333
Accrued Interest Receivable 9,318 6,341
Other Real Estate Owned 1,125 2,619
Net Deferred Tax Asset 11,403 9,179
Other Assets 7,534 5,150
--------- ---------
Total Assets $1,223,593 $1,231,003
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Demand $166,750 $159,323
Savings 514,968 496,692
Time:
Certificates of Deposit $100,000 and Over 57,938 62,640
Other Time Deposits 300,072 316,109
--------- ---------
Total Deposits 1,039,728 1,034,764
--------- ---------
Short-Term Borrowings 61,133 79,078
Accrued Expenses and Other Liabilities 19,651 19,450
--------- ---------
Total Liabilities 1,120,512 1,133,292
--------- ---------
Stockholders' Equity:
Common Stock - $1 Par Value
Authorized - 30,000,000 Shares
Issued - 6,479,583 Shares in 1994; and 6,480 6,461
6,460,584 in 1993
Surplus 51,479 51,228
Retained Earnings 52,250 43,056
Treasury Stock - At Cost, 241,402 Shares in 1994;
248,129 in 1993 (2,901) (2,982)
Valuation Allowance for Net Unrealized Losses on
Investment Securities Available for Sale (Net of (4,111) (21)
Taxes)
Unearned Portion of Employee Restricted Stock (116) (31)
--------- ---------
Total Stockholders' Equity 103,081 97,711
--------- ---------
Total Liabilities and Stockholders' Equity $1,223,593 $1,231,003
========= =========
Certain amounts for 1993 have been reclassified to conform with 1994
classifications.
</TABLE>
<TABLE>
Chittenden Corporation
Consolidated Statements of Income (Unaudited)
<CAPTION>
For the Quarter
Ended September 30,
1994 1993
--------------------
(In Thousands,
Except Share Data)
Interest Income:
<S> <C> <C>
Loans $18,321 $17,638
Investment Securities:
Mortgage-Backed 605 326
Taxable 2,102 1,409
Tax-Favored Debt 511 428
Tax-Favored Equity 24 (1)
Short-Term Investments 288 68
-------- --------
Total Interest Income 21,851 19,868
-------- --------
Interest Expense:
Deposits:
Savings 3,931 2,926
Time:
Certificates of Deposit $100,000 and Over 550 603
Other Time Deposits 3,002 3,139
-------- --------
Total Interest on Deposits 7,483 6,668
Short-Term Borrowings 415 485
-------- --------
Total Interest Expense 7,898 7,153
-------- --------
Net Interest Income 13,953 12,715
Provision for Possible Loan Losses 1,000 1,650
-------- --------
Net Interest Income after Provision for
Possible Loan Losses 12,953 11,065
-------- --------
Noninterest Income:
Trust Department Income 990 976
Service Charges on Deposit Accounts 1,131 1,101
Gains (Losses) on Investment Securities (200) 146
Mortgage Servicing Income 520 173
Gains on Sales of Mortgage Loans 184 1,713
Credit Card Income 2,160 1,575
Other 855 836
-------- --------
Total Noninterest Income 5,640 6,520
-------- --------
Noninterest Expense:
Salaries 4,321 4,460
Employee Benefits 1,528 1,356
Net Occupancy Expense 1,368 1,430
FDIC Deposit Insurance 572 617
(Gains) Losses On and Write-Downs of Other Real Estate
Owned 39 350
Credit Card Expense 1,437 1,033
Other 3,274 4,005
-------- --------
Total Noninterest Expense 12,539 13,251
-------- --------
Income Before Income Taxes and Cumulative Effect of Change
in Accounting Principle 6,054 4,334
Provision for Income Taxes 2,031 1,471
-------- --------
Income Before Cumulative Effect of Change in Accounting
Principle 4,023 2,863
-------- --------
Cumulative Effect of Change in Accounting Principle - -
-------- --------
Net Income $4,023 $2,863
======== ========
Earnings Per Share:
Before Cumulative Effect of Change in Accounting Principle $0.63 $0.46
Cumulative Effect of Change in Accounting Principle - -
-------- --------
Fully Diluted $0.63 $0.46
======== ========
Primary $0.63 -
Dividends Declared $0.13 $0.05
Book Value $16.53 $15.25
Weighted Average Common Shares Outstanding 6,371,709 6,209,691
For the Nine Months
Ended September 30,
1994 1993
---------------------
Interest Income:
Loans $51,616 $52,681
Investment Securities:
Mortgage-Backed 1,815 1,677
Taxable 6,341 4,082
Tax-Favored Debt 1,024 976
Tax-Favored Equity 417 204
Short-Term Investments 588 161
-------- --------
Total Interest Income 61,801 59,781
-------- --------
Interest Expense:
Deposits:
Savings 10,097 9,141
Time:
Certificates of Deposit $100,000 and Over 1,746 1,796
Other Time Deposits 8,804 10,143
-------- --------
Total Interest on Deposits 20,647 21,080
Short-Term Borrowings 1,380 1,366
-------- --------
Total Interest Expense 22,027 22,446
-------- --------
Net Interest Income 39,774 37,335
Provision for Possible Loan Losses 3,400 4,950
-------- --------
Net Interest Income after Provision for
Possible Loan Losses 36,374 32,385
-------- --------
Noninterest Income:
Trust Department Income 3,039 2,959
Service Charges on Deposit Accounts 3,475 3,344
Gains (Losses) on Investment Securities (324) 130
Mortgage Servicing Income 1,528 748
Gains on Sales of Mortgage Loans 918 4,713
Credit Card Income 5,715 3,890
Other 2,684 2,450
-------- --------
Total Noninterest Income 17,035 18,234
-------- --------
Noninterest Expense:
Salaries 12,842 12,943
Employee Benefits 4,516 4,071
Net Occupancy Expense 4,161 4,406
FDIC Deposit Insurance 1,753 1,958
(Gains) Losses On and Write-Downs of Other Real Estate
Owned (87) 1,225
Credit Card Expense 3,817 2,651
Other 9,541 11,387
-------- --------
Total Noninterest Expense 36,543 38,641
-------- --------
Income Before Income Taxes and Cumulative
Effect of Change in Accounting Principle 16,866 11,978
Provision for Income Taxes 5,615 3,716
-------- --------
Income Before Cumulative Effect of Change in Accounting
Principle 11,251 8,262
-------- --------
Cumulative Effect of Change in Accounting Principle - (575)
-------- --------
Net Income $11,251 $7,687
======== ========
Earnings Per Share:
Before Cumulative Effect of Change in Accounting Principle $1.77 $1.33
Cumulative Effect of Change in Accounting Principle - $(0.09)
-------- --------
Fully Diluted $1.77 $1.24
======== ========
Primary $1.77 -
Dividends Declared $0.33 $0.15
Book Value $16.53 $15.25
Weighted Average Common Shares Outstanding 6,366,107 6,204,983
</TABLE>
<TABLE>
Chittenden Corporation
Consolidated Statements of Cash Flows
(Unaudited)
<CAPTION>
Nine Months Ended
September 30,
1994 1993
-------------------
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income $11,251 $7,687
Adjustments to reconcile net income to net
cash provided by operating activities:
Provision for possible loan losses 3,400 4,950
Depreciation and amortization 1,468 1,577
Amortization of excess of cost over fair value of 636
net assets acquired
Prepaid Income taxes (10) (204)
Amortization of premiums, fees, and discounts,
net 1,038 919
Investment (gains) losses 324 (130)
Net (Increase) decrease in loans held for sale 9,751 (10,452)
(Increase) decrease in accrued interest receivable (2,977) (108)
(Increase) decrease in other assets (893) 5,621
Increase (decrease) in accrued expenses
and other liabilities 201 (4,654)
-------- --------
Net cash provided by operating activities 23,553 5,842
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of investment securities
(Available for sale) 32,992 20,308
Proceeds from maturing investment securities and
principal payments on mortgage-backed securities
(Available for sale) 124,328 0
Proceeds from maturing investment securities
and principal payments on mortgage-backed
securities (Held For Investment) 775 139,824
Purchase of investment securities (Available For Sale) 231,331 0
Purchase of investment securities (Held For Investment) (9,332) (166,060)
Loans originated, net of principal repayments (21,286) 18,198
Purchases of premises and equipment (1,568) (2,185)
-------- --------
Net cash provided by (used in) investing activities 357,240 10,085
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits 4,964 23,107
Net increase (decrease) in short-term borrowings (17,945) 45,829
Proceeds from issuance of common stock 169 138
Dividends paid-common stock (2,056) (871)
Proceeds from issuance of treasury stock 66 35
-------- --------
Net cash provided by (used in) financing activities (14,802) 68,238
-------- --------
Net decrease in cash and cash equivalents 365,991 84,165
Cash and cash equivalents at beginning of period 195,163 129,511
-------- --------
Cash and cash equivalents at September 30, $561,154 $213,676
======== ========
Supplemental disclosure of cash flow information:
Cash paid for the year for:
Interest $22,004 $22,649
Income taxes 4,400 4,637
Noncash transactions:
Loans transferred to other real estate owned 1,187 3,283
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> SEP-30-1994
<CASH> 83392
<INT-BEARING-DEPOSITS> 100
<FED-FUNDS-SOLD> 15000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 10223
<INVESTMENTS-MARKET> 9741
<LOANS> 868264
<ALLOWANCE> 19089
<TOTAL-ASSETS> 1223593
<DEPOSITS> 1039728
<SHORT-TERM> 61133
<LIABILITIES-OTHER> 19651
<LONG-TERM> 0
<COMMON> 6480
0
0
<OTHER-SE> 96601
<TOTAL-LIABILITIES-AND-EQUITY> 1223593
<INTEREST-LOAN> 51616
<INTEREST-INVEST> 9597
<INTEREST-OTHER> 588
<INTEREST-TOTAL> 61801
<INTEREST-DEPOSIT> 20647
<INTEREST-EXPENSE> 22027
<INTEREST-INCOME-NET> 39774
<LOAN-LOSSES> 3400
<SECURITIES-GAINS> (324)
<EXPENSE-OTHER> 36543
<INCOME-PRETAX> 16866
<INCOME-PRE-EXTRAORDINARY> 16866
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 11251
<EPS-PRIMARY> 1.77
<EPS-DILUTED> 1.77
<YIELD-ACTUAL> 4.77
<LOANS-NON> 7926
<LOANS-PAST> 1073
<LOANS-TROUBLED> 187
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 18917
<CHARGE-OFFS> 4088
<RECOVERIES> 860
<ALLOWANCE-CLOSE> 19089
<ALLOWANCE-DOMESTIC> 19089
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
<TABLE>
Chittenden Corporation
Average Balances, Interest Income and Expense, and Average Rates (Unaudited)
For the Nine Months Ended September 30,
<CAPTION>
1994
------------------------------------
Interest Average
Average Income/ Yield/
Balance (6) Expense(1) Rate(1)
----------- ----------- ------------
(In Thousands)
ASSETS
Interest-Earning Assets:
<S> <C> <C> <C>
Loans (2) $834,187 $51,121 8.19%
Industrial Revenue Bonds (3) 10,071 730 9.69
Investments:
Taxable 193,649 8,156 5.63
Tax-Favored Debt Securities 37,838 1,481 5.23
Tax-Favored Equity Securities 18,721 565 4.04
Interest-Bearing Deposits in Banks 1,364 34 3.33
Federal Funds Sold 18,286 554 4.05
------- -------
Total Interest-Earning Assets 1,114,116 62,641 7.52
-------
NonInterest-Earning Assets 97,349
Allowance for Possible Loan Losses (19,302)
-------
Total Assets $1,192,163
===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-Bearing Liabilities:
Savings and Interest-Bearing
Transactional Accounts 516,816 10,097 2.61
Certificates of Deposit $100,000
and Over 61,988 1,746 3.77
Other Time Deposits 306,866 8,804 3.84
------- -------
Total Interest-Bearing Deposits 885,670 20,647 3.12
Short-Term Borrowings 35,532 1,380 5.19
Long-Term Debt - - -
------- -------
Total Interest-Bearing Liabilities 921,202 22,027 3.20
-------
NonInterest-Bearing Liabilities:
Demand Deposits 158,910
Other Liabilities 11,433
-------
Total Liabilities 1,091,545
Stockholders' Equity 100,618
-------
Total Liabilities and
Stockholders' Equity $1,192,163
===========
Net Interest Income $40,614
=======
Interest Rate Spread (4) 4.32%
Net Yield on Earning Assets (5) 4.87%
(1) On a fully taxable equivalent basis. Calculated using a U.S. Federal
Income Tax Rate of 35%.
(2) Includes nonperforming loans.
(3) Industrial revenue bonds are included in Loans in the Financial Statements.
(4) Interest rate spread is the average rate earned on total interest-earning
assets less the average rate paid for interest-bearing liabilities.
(5) Net yield on earning assets is net interest income divided by total
interest-earning assets.
(6) Average balances are based on historical amortized cost balances.
Chittenden Corporation
Average Balances, Interest Income and Expense, and Average Rates (Unaudited)
For the Nine Months Ended September 30,
1993
------------------------------------
Interest Average
Average Income/ Yield/
Balance (6) Expense(1) Rate(1)
----------- ----------- ------------
(In Thousands)
ASSETS
Interest-Earning Assets:
Loans (2) $859,431 $52,166 8.12%
Industrial Revenue Bonds (3) 11,751 756 8.60
Investments:
Taxable 144,809 5,759 5.32
Tax-Favored Debt Securities 51,343 1,410 3.67
Tax-Favored Equity Securities 5,734 276 6.44
Interest-Bearing Deposits in Banks 1,602 38 3.17
Federal Funds Sold 6,045 123 2.72
------- -------
Total Interest-Earning Assets 1,080,715 60,528 7.49
-------
NonInterest-Earning Assets 99,377
Allowance for Possible Loan Losses (17,315)
-------
Total Assets $1,162,777
===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-Bearing Liabilities:
Savings and Interest-Bearing
Transactional Accounts 494,418 9,141 2.47
Certificates of Deposit $100,000
and Over 65,416 1,796 3.67
Other Time Deposits 329,231 10,143 4.12
------- -------
Total Interest-Bearing Deposits 889,065 21,080 3.17
Short-Term Borrowings 40,999 1,366 4.45
Long-Term Debt 9 - 8.00
------- -------
Total Interest-Bearing Liabilities 930,073 22,446 3.23
-------
NonInterest-Bearing Liabilities:
Demand Deposits 126,553
Other Liabilities 14,746
-------
Total Liabilities 1,071,372
Stockholders' Equity 91,405
-------
Total Liabilities and
Stockholders' Equity $1,162,777
===========
Net Interest Income $38,082
=======
Interest Rate Spread (4) 4.26%
Net Yield on Earning Assets (5) 4.71%
(1) On a fully taxable equivalent basis. Calculated using a U.S. Federal
Income Tax Rate of 35%.
(2) Includes nonperforming loans.
(3) Industrial revenue bonds are included in Loans in the Financial Statements.
(4) Interest rate spread is the average rate earned on total interest-earning
assets less the average rate paid for interest-bearing liabilities.
(5) Net yield on earning assets is net interest income divided by total
interest-earning assets.
(6) Average balances are based on historical amortized cost balances.
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