<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 30, 1999
CHITTENDEN CORPORATION
(Exact name of Registrant
as specified in charter)
Vermont 0-7974 03-0228404
(State or other jurisdiction (Commission IRS Employer
of incorporation) File Number) Identification No.)
Two Burlington Square, Burlington, Vermont 05401
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (802) 660-1410
Not Applicable
(Former name or former address,
if changed since last report)
<PAGE>
ITEM 5. OTHER EVENTS
Chittenden Corporation Press Release dated 07-22-99 (including the analyst
informational addendum) attached to this Form 8-K as Exhibit 28.
<PAGE>
INDEX TO EXHIBITS
EXHIBIT NUMBER PAGE NUMBER
(28) Additional Exhibits 5
<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
(Registrant)
BY: /S/ F. Sheldon Prentice, Secretary
<PAGE>
Exhibit 28
Chittenden Corporation
2 Burlington Square
P.O. Box 820 Chittenden
Burlington, Vermont 05402-0820 Kirk W. Walters CORPORATION
802-658-4000 (802) 660-1561
- --------------------------------------------------------------------------------
For Immediate Release
July 22, 1999
51/99
CHITTENDEN REPORTS EARNINGS, ANNOUNCES DIVIDEND
- -----------------------------------------------
Burlington, VT -- Chittenden Corporation (NYSE:CHZ) Chairman, President and
Chief Executive Officer, Paul A. Perrault, today announced second quarter 1999
operating net income of $12.1 million compared to $12.6 million earned in the
same period last year. This represents $0.42 per diluted share, compared to
$0.44 per diluted share earned in the second quarter of 1998. For the first six
months of 1999, operating earnings were $0.84 per diluted share, an increase
from $0.83 for the same period last year.
On May 28, 1999, Chittenden Corporation completed its acquisition of Vermont
Financial Services Corp. (VFSC) in a stock-for-stock merger. Vermont Financial
was the parent company of Vermont National Bank, headquartered in Brattleboro,
Vermont, and United Bank, headquartered in Greenfield, Massachusetts.
Approximately fourteen million shares of Chittenden common stock were issued in
the transaction, which brought the total number of Chittenden shares outstanding
to twenty-eight million. The acquisition has been accounted for as a pooling of
interests and accordingly, all financial data has been restated to reflect the
combined financial condition and results of operations as if the acquisition had
been in effect for all periods presented.
In making the announcement, Perrault said, "We are very pleased to have
completed our merger with Vermont Financial Services Corp. and to have shifted
our focus to smoothly executing the combination of the operations of the two
corporations. We have made good progress to date and I am particularly pleased
with the way the two organizations are working together as a combined entity".
Chittenden also announced its quarterly dividend of $0.22 per share. The
dividend will be paid on August 20, 1999, to shareholders of record on August 6,
1999.
The operating return on average equity was 12.28% for the second quarter of
1999, compared with 13.34% in the same quarter of 1998. For the first half of
1999, operating return on average equity was 12.36%, compared with 13.00% for
the same period last year. The operating return on average assets for the
second quarter of 1999 was 1.17%, down from 1.25% for the second quarter of
1998. For the first six months of 1999, the operating return on average assets
was 1.16%, down from 1.21% a year ago. The declines in operating ROE were again
attributable to increased levels of average stockholders' equity caused by the
Company's rescission of its share repurchase program prior to the announcement
of the agreement to acquire VFSC.
- more -
Contact Person: Rob Hofmann (802) 660-1308
<PAGE>
Chittenden Corporation
2 Burlington Square
P.O. Box 820 Chittenden
Burlington, Vermont 05402-0820 Kirk W. Walters CORPORATION
802-658-4000 (802) 660-1561
- --------------------------------------------------------------------------------
For Immediate Release
The Company recorded $71 million (pre-tax) of special charges in the second
quarter. Merger related charges for the quarter ended June 30, 1999 totaled
$49.9 million on an pre-tax basis. These merger expenses included conversion,
severance and transaction costs, such as legal, advisory and accounting fees.
Additionally, impaired goodwill, related to VFSC's purchase of Eastern Bancorp,
totaling approximately $21.1 million was written off as a result of the
divestitures required by the
U.S. Department of Justice and Federal Reserve. As a result of these special
charges, Chittenden's net losses for the second quarter and the first six months
of 1999 were $44.4 million and $32.5 million, respectively, or $1.55 and $1.14
per diluted share.
The net interest margin for the first quarter of 1999 was 4.61%, compared with
4.74% in the same period of 1998, and 4.61% for the first quarter of 1999. Net
interest income was $43.2 million for the second quarter of 1999 and $42.8
million for the second quarter of 1998. The increase in net interest income from
the second quarter of 1998 was attributed to higher levels of average interest
earning assets caused by increased levels of average deposits in the 1999 second
quarter as compared to the 1998 second quarter. These higher levels of interest
earning assets offset the decline in the net interest margin earned on those
assets. For the first half of 1999, net interest income was $86.4 million,
compared with $85.7 million in 1998. The net interest margin for the first six
months of 1999 was 4.61%, compared with 4.76% for the 1998 period.
Noninterest income amounted to $16.6 million for the second quarter of 1999 and
$32.8 million for the first half of 1999, down from $17.2 million and $33.2
million for the same periods last year. The decrease of 1% or $413,000 for the
first half of 1999 was primarily attributable to a $1.1 million decrease in
service charges on deposits, offset by a 15% or $944,000 increase in investment
management revenue.
Operating noninterest expenses were $38.2 million for the second quarter, and
$76.6 million for the first half of 1999. These amounts were $752,000 and $1.5
million higher than the same periods for the previous year. Both of these
amounts represented increases of approximately 2% over the comparable 1998
periods.
The allowance for possible loan losses was $42.4 million at June 30, 1999,
compared with $45.7 million a year ago, and $41.2 million at December 31, 1998.
Nonperforming assets were $14.4 million at June 30, 1999, down substantially
from $27.0 million at June 30, 1998, and $19.8 million at December 31, 1998.
The June 30, 1999 nonperforming balance reflects two large payoffs on
nonperforming commercial loans, which occurred during the second quarter, as
well as continuing reductions in the levels of Other Real Estate Owned.
Chittenden is a bank holding company headquartered in Burlington, Vermont, with
total assets of $4.1 billion at June 30, 1999. Its subsidiary banks are
Chittenden Bank, Vermont National Bank, The Bank of Western Massachusetts,
United Bank, and Flagship Bank and Trust Company. The Company offers a broad
range of financial products and services, including deposit accounts and
services; consumer, commercial, and public sector loans; insurance; brokerage;
and investment and trust services to individuals, businesses, and the public
sector. To find out more about Chittenden and its products, visit our web site
at www.chittenden.com. Chittenden Corporation news releases, including earnings
announcements, are available via fax by calling 800-758-5804. The six-digit
code is 124292.
Contact Person: Rob Hofmann (802) 660-1308
<PAGE>
<TABLE>
<CAPTION>
CHITTENDEN CORPORATION
SELECTED FINANCIAL DATA
(Unaudited)
(In Thousands, except for ratios, shares and per share amounts)
Restated Restated Restated
Period End Balance Sheet Data 6/30/99 3/31/99 12/31/98 6/30/98
- ----------------------------- ------- ------- -------- -------
<S> <C> <C> <C> <C>
Cash and Cash Equivalents $ 203,349 $ 230,194 $ 255,871 $ 252,587
Securities 866,657 956,055 1,027,226 910,627
Loans:
Commercial 527,250 505,411 480,801 474,585
Municipal 83,975 93,964 97,189 72,880
Real Estate:
Residential 1,123,218 1,125,408 1,159,819 1,196,064
Commercial 631,478 600,175 573,253 540,233
Construction 65,508 72,142 69,690 61,911
-------------------------------------------------------
Total Real Estate 1,820,204 1,797,725 1,802,762 1,798,208
Consumer 478,099 421,736 414,830 372,339
-------------------------------------------------------
Total Loans 2,909,528 2,818,836 2,795,582 2,718,012
Less: Allowance for Possible Loan Losses (42,431) (42,262) (41,209) (45,727)
-------------------------------------------------------
Net Loans 2,867,097 2,776,574 2,754,373 2,672,285
Other Real Estate Owned 615 1,354 1,870 3,300
Other Assets 193,587 223,550 225,103 229,261
-------------------------------------------------------
Total Assets $ 4,131,305 $ 4,187,727 $ 4,264,443 $ 4,068,060
=======================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Demand $ 615,292 $ 596,703 $ 613,645 $ 591,586
Savings 1,982,213 2,026,134 2,059,028 1,864,582
Certificates of Time less than $100,000
and Other Time Deposits 781,758 778,080 798,921 841,543
Certificates of Time $100,000 and Over 188,029 208,399 208,177 169,494
-------------------------------------------------------
Total Deposits 3,567,292 3,609,316 3,679,771 3,467,205
Short-Term Borrowings 138,966 129,796 135,276 157,450
Accrued Expenses and Other Liabilities 82,386 54,012 59,936 58,448
-------------------------------------------------------
Total Liabilities 3,788,644 3,793,124 3,874,983 3,683,103
Total Stockholders' Equity 342,661 394,603 389,460 384,957
-------------------------------------------------------
Total Liabilities and Stockholders' Equity $ 4,131,305 $ 4,187,727 $ 4,264,443 $ 4,068,060
=======================================================
Book Value per Common Share $12.15 $14.12 $13.94 $13.49
Common Shares Outstanding 28,193,504 27,954,894 27,937,069 28,529,823
Credit Quality Data
- -------------------
Nonperforming Assets (including OREO) $ 14,372 $ 17,535 $ 19,784 $ 27,026
90 days past due and still accruing 4,144 5,807 4,336 6,819
Nonperforming Assets to Loans Plus OREO 0.50% 0.62% 0.71% 0.99%
Allowance to Loans 1.46% 1.50% 1.47% 1.68%
Allowance to Nonperforming Loans (excluding OREO) 314.42% 261.18% 230.03% 192.73%
QTD Average Balance Sheet Data
- ------------------------------
Loans, Net $ 2,774,036 $ 2,785,443 $ 2,783,411 $ 2,706,609
Earning Assets 3,841,989 3,854,592 3,865,454 3,701,844
Total Assets 4,161,390 4,174,514 4,204,429 4,049,339
Deposits 3,587,971 3,596,764 3,616,573 3,438,641
Stockholders' Equity 396,045 388,535 389,405 379,917
</TABLE>
Prior periods have been restated to reflect the acquisition of Vermont Financial
Services Corp.
<PAGE>
<TABLE>
<CAPTION>
CHITTENDEN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In Thousands, except for ratios, shares and per share amounts)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1999 1998 1999 1998
---- ---- ---- ----
Restated Restated
<S> <C> <C> <C> <C>
Interest Income:
Interest on Loans $ 57,338 $ 58,876 $ 113,910 $ 117,946
Interest on Investments 14,339 15,756 29,962 31,270
-------------------------------------------------------------------------
Total Interest Income 71,677 74,632 143,872 149,216
-------------------------------------------------------------------------
Interest Expense:
Deposits 26,836 29,338 54,250 58,570
Short-term Borrowings 1,599 2,459 3,211 4,992
-------------------------------------------------------------------------
Total Interest Expense 28,435 31,797 57,461 63,562
Net Interest Income 43,242 42,835 86,411 85,654
Provision for Possible Loan Losses 2,175 2,310 4,350 4,710
-------------------------------------------------------------------------
Net Interest Income after Provision
for Possible Loan Losses 41,067 40,525 82,061 80,944
-------------------------------------------------------------------------
Noninterest Income:
Investment Management and Trust Income 3,657 3,164 7,199 6,255
Service Charges on Deposit Accounts 4,687 5,240 9,102 10,186
Mortgage Servicing Income 808 848 1,738 1,591
Gains on Sales of Mortgage Loans, Net 1,395 2,127 3,199 4,087
Credit Card Income, Net 1,510 1,821 2,850 3,124
Insurance Commissions, Net 560 577 1,201 1,543
Securities Gains - 111 - 261
Other 3,984 3,325 7,470 6,125
-------------------------------------------------------------------------
Total Noninterest Income 16,601 17,216 32,759 33,172
-------------------------------------------------------------------------
Noninterest Expense:
Salaries and Employee Benefits 19,385 18,605 38,829 37,700
Net Occupancy Expense 6,396 6,417 13,036 12,842
Other Real Estate Owned, Expense, Net 110 314 256 575
Amortization of Intangibles 1,465 1,465 2,928 2,949
Special Charges 70,995 - 70,995 -
Other 10,890 10,693 21,554 21,067
-------------------------------------------------------------------------
Total Noninterest Expense 109,241 37,494 147,598 75,133
-------------------------------------------------------------------------
Income (Loss) Before Income Taxes (51,573) 20,247 (32,778) 38,983
Income Tax Expense (Benefit) (7,169) 7,607 (294) 14,728
-------------------------------------------------------------------------
Net Income (Loss) $ (44,404) $ 12,640 $ (32,484) $ 24,255
=========================================================================
Weighted Average Common Shares Outstanding 28,121,995 28,551,461 28,044,635 28,574,962
Weighted Average Common and
Common Equivalent Shares Outstanding 28,601,396 29,049,572 28,543,302 29,077,071
Earnings Per Share, Basic $ (1.58) $ 0.44 $ (1.16) $ 0.85
Earnings Per Share, Diluted (1.55) 0.44 (1.14) 0.83
Dividends Per Share 0.19 0.17 0.37 0.33
Operating Net Income $ 12,127 $ 12,640 $ 24,046 $ 24,255
Operating Earnings Per Share, Basic $ 0.43 $ 0.44 $ 0.86 $ 0.85
Operating Earnings Per Share, Diluted 0.42 0.44 0.84 0.83
Operating Return on Average Equity 12.28% 13.34% 12.36% 13.00%
Operating Return on Average Assets 1.17% 1.25% 1.16% 1.21%
Net Yield on Earning Assets 4.61% 4.74% 4.61% 4.76%
</TABLE>
Prior periods have been restated to reflect the acquisition of Vermont Financial
Services Corp.
<PAGE>
<TABLE>
<CAPTION>
CHITTENDEN CORPORATION
CONSOLIDATED BALANCE SHEETS (Unaudited) *
03/31/98 06/30/98 09/30/98 12/31/98 03/31/99 06/30/99
---------- ---------- ---------- ---------- ---------- ----------
ASSETS
<S> <C> <C> <C> <C> <C> <C>
Cash and Cash Equivalents $ 286,011 $ 252,587 $ 261,540 $ 255,871 $ 230,194 $ 203,349
Securities Available For Sale 854,194 888,648 897,281 1,005,247 934,076 844,678
FHLB and FRB Stock 21,979 21,979 21,979 21,979 21,979 21,979
Mortgage Loans Held for Sale 104,508 89,089 90,024 53,684 24,599 17,831
Loans:
Commercial 447,443 474,585 494,836 480,801 505,411 527,250
Municipal 89,856 72,880 113,363 97,189 93,964 83,975
Real Estate:
Residential 1,103,553 1,106,975 1,085,900 1,106,135 1,100,809 1,105,387
Commercial 536,003 540,233 553,289 573,253 600,175 631,478
Construction 59,775 61,911 60,230 69,690 72,142 65,508
-------------------------------------------------------------------------------
Total Real Estate 1,699,331 1,709,119 1,699,419 1,749,078 1,773,126 1,802,373
Consumer 348,391 372,339 393,706 414,830 421,736 478,099
-------------------------------------------------------------------------------
Total Loans 2,585,021 2,628,923 2,701,324 2,741,898 2,794,237 2,891,697
Less: Allowance for Possible Loan
Losses (45,207) (45,727) (41,492) (41,209) (42,262) (42,431)
-------------------------------------------------------------------------------
Net Loans 2,539,814 2,583,196 2,659,832 2,700,689 2,751,975 2,849,266
Accrued Interest Receivable 33,350 33,854 32,557 32,523 31,334 31,767
Other Real Estate Owned 4,258 3,300 3,038 1,870 1,354 615
Other Assets 66,770 51,154 50,500 52,108 54,667 69,098
Premises and Equipment, Net 71,804 71,685 71,232 71,012 69,558 47,437
Intangible Assets 74,047 72,568 71,098 69,460 67,991 45,285
-------------------------------------------------------------------------------
Total Assets $4,056,735 $4,068,060 $4,159,081 $4,264,443 $4,187,727 $4,131,305
===============================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Demand $ 540,869 $ 591,586 $ 572,652 $ 613,645 $ 596,703 $ 615,292
Savings 1,853,118 1,864,582 1,951,810 2,059,028 2,026,134 1,982,213
Time Deposits less than $100,000 869,921 841,543 821,932 798,921 778,080 781,758
Time Deposits $100,000 and over 196,601 169,494 210,759 208,177 208,399 188,029
-------------------------------------------------------------------------------
Total Deposits 3,460,509 3,467,205 3,557,153 3,679,771 3,609,316 3,567,292
Short-Term Borrowings 162,472 157,450 157,107 135,276 129,796 138,966
Accrued Expenses and Other
Liabilities 51,321 58,448 57,299 59,936 54,012 82,386
-------------------------------------------------------------------------------
Total Liabilities 3,674,302 3,683,103 3,771,559 3,874,983 3,793,124 3,788,644
Stockholders' Equity:
Common Stock - $1 Par Value 30,135 30,049 29,727 29,685 29,703 28,193
Surplus 188,663 186,010 178,724 178,102 178,650 145,994
Retained Earnings 191,145 198,917 206,342 214,329 221,220 171,489
Treasury Stock - At Cost (31,213) (34,170) (38,302) (38,852) (37,757) -
Accumulated Other Comprehensive
Income 4,093 4,556 11,321 6,462 3,033 (2,788)
Unearned Portion of Employee
Restricted Stock (390) (405) (290) (266) (246) (227)
-------------------------------------------------------------------------------
Total Stockholders' Equity 382,433 384,957 387,522 389,460 394,603 342,661
Total Liabilities and Stockholders'
Equity $4,056,735 $4,068,060 $4,159,081 $4,264,443 $4,187,727 $4,131,305
===============================================================================
</TABLE>
*Prior periods are restated to reflect the acquisition of Vermont Financial
Services Corp.
<PAGE>
<TABLE>
<CAPTION>
CHITTENDEN CORPORATION
Consolidated Statements of Income (Unaudited) *
QTR QTR QTR QTR QTR QTR
03/31/98 06/30/98 09/30/98 12/31/98 03/31/99 06/30/99
<S> <C> <C> <C> <C> <C> <C>
Interest Income:
Interest on Loans $ 59,070 $ 58,876 $ 59,971 $ 58,991 $ 56,572 $ 57,338
Interest on Investments 15,514 15,756 15,446 16,058 15,623 14,339
-----------------------------------------------------------------------------
Total Interest Income 74,584 74,632 75,417 75,049 72,195 71,677
Interest Expense:
Deposits 29,232 29,338 29,572 29,358 27,414 26,836
Short-term Borrowings 2,533 2,459 1,937 1,806 1,612 1,599
-----------------------------------------------------------------------------
Total Interest Expense 31,765 31,797 31,509 31,164 29,026 28,435
Net Interest Income 42,819 42,835 43,908 43,885 43,169 43,242
Provision for Possible Loan Losses 2,400 2,310 2,250 1,275 2,175 2,175
Net Interest Income after Provision
for Possible Loan Losses 40,419 40,525 41,658 42,610 40,994 41,067
-----------------------------------------------------------------------------
Noninterest Income:
Investment Management and Trust Income 3,091 3,164 3,249 3,409 3,542 3,657
Service Charges on Deposit Accounts 4,946 5,240 4,863 5,023 4,415 4,687
Mortgage Servicing Income 743 848 829 851 930 808
Gains on Sales of Mortgage Loans, Net 1,960 2,127 1,858 2,089 1,804 1,395
Credit Card Income, Net 1,300 1,824 1,408 1,352 1,340 1,510
Insurance Commissions, Net 966 577 819 516 641 560
Securities Gains/Losses 150 111 95 429 0 0
Other 2,800 3,325 3,857 3,271 3,486 3,984
-----------------------------------------------------------------------------
Total Noninterest Income 15,956 17,216 16,978 16,940 16,158 16,601
Noninterest Expense:
Salaries and Employee Benefits 19,095 18,605 19,870 19,705 19,444 19,385
Net Occupancy Expense 6,425 6,417 6,079 6,378 6,640 6,396
Other Real Estate Owned, Expense, Net 261 314 187 (111) 146 110
Amortization of Intangibles 1,484 1,465 1,464 1,463 1,463 1,465
Special Charges 0 0 0 0 0 70,995
Other 10,374 10,693 10,894 11,621 10,664 10,890
-----------------------------------------------------------------------------
Total Noninterest Expense 37,639 37,494 38,494 39,056 38,357 109,241
Income (Loss) Before Income Taxes 18,736 20,247 20,142 20,494 18,795 (51,573)
Income Tax Expense (Benefit) 7,121 7,607 7,623 7,490 6,875 (7,169)
-----------------------------------------------------------------------------
Net Income (Loss) $ 11,615 $ 12,640 $ 12,519 $ 13,004 $ 11,920 ($44,404)
=============================================================================
</TABLE>
* Prior periods are restated to reflect the acquisition of
Vermont Financial Services Corp.
<PAGE>
<TABLE>
<CAPTION>
CHITTENDEN CORPORATION QTD QTD QTD QTD QTD QTD
Selected Financial Data (Unaudited) * 03/31/98 06/30/98 09/30/98 12/31/98 03/31/99 06/30/99
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Book Value per Common Share 13.37 13.49 13.84 13.94 14.12 12.15
Tangible Book Value Per Share 10.78 10.95 11.30 11.45 11.68 10.55
Common Shares Outstanding 28,606,416 28,529,823 27,995,899 27,937,069 27,954,894 28,193,504
CREDIT QUALITY
- --------------
Nonperforming assets $ 27,712 $ 27,026 $ 25,405 $ 19,784 $ 17,535 $ 14,372
90 Days past due and still accruing 5,486 6,819 4,855 4,336 5,807 4,144
Nonperforming assets to loans plus OREO 1.03% 0.99% 0.91% 0.71% 0.62% 0.50%
Allowance to Loans 1.68% 1.68% 1.49% 1.47% 1.50% 1.46%
Allowance to Nonperforming (excluding OREO) 192.75% 192.73% 185.50% 230.03% 261.18% 314.42%
QTR Average Balance Sheet
- -------------------------
Loans, Net $ 2,697,119 $ 2,706,609 $ 2,766,337 $ 2,783,411 $ 2,785,443 $ 2,774,036
Earning Assets 3,670,786 3,701,844 3,759,118 3,865,454 3,854,592 3,841,989
Total Assets 4,028,578 4,049,339 4,087,053 4,204,429 4,174,514 4,161,390
Deposits 3,421,419 3,438,641 3,509,135 3,616,573 3,596,764 3,587,971
Stockholders Equity 376,156 379,917 379,906 389,405 388,535 396,045
Earnings Per Share, Basic 0.41 0.44 0.44 0.47 0.43 (1.58)
Earnings Per Share, Diluted 0.40 0.44 0.44 0.46 0.42 (1.55)
Dividends Per Share 0.16 0.17 0.18 0.18 0.18 0.19
Operating Earnings Per Share, Basic 0.41 0.44 0.44 0.47 0.43 0.43
Operating Earnings Per Share, Diluted 0.40 0.44 0.44 0.46 0.42 0.42
Weighted Average Common Shares Outstanding 28,599,603 28,551,461 28,224,418 27,924,260 27,966,416 28,121,995
Weighted Average Common and Common
Equivalent Shares Outstanding 29,107,003 29,049,572 28,697,009 28,390,496 28,446,902 28,601,396
Return on Average Equity 12.52% 13.34% 13.28% 13.25% 12.44% 12.28%
Return on Average Assets 1.17% 1.25% 1.23% 1.23% 1.16% 1.17%
Net Yield on Earning Assets 4.80% 4.74% 4.73% 4.60% 4.61% 4.61%
</TABLE>
*Prior periods have been restated to reflect the acquisition of Vermont
Financial Service Corp.
