Chittenden Reports Earnings and Quarterly Dividends

Apr 18, 2001, 01:00 ET from Chittenden Corporation

    BURLINGTON, Vt., April 18 /PRNewswire/ -- Chittenden Corporation
 (NYSE:   CHZ) Chairman, President and Chief Executive Officer, Paul A. Perrault,
 today announced first quarter 2001 net income of $14.5 million compared to
 operating net income of $15.4 million earned in the same period last year.
 This represents $0.55 per diluted share, compared to the $0.54 per diluted
 share earned on an operating basis in the first quarter of 2000.  The decline
 in net income was primarily attributable to the Corporation's share repurchase
 program.  Chittenden also announced its quarterly dividend of $0.24 per share.
 The dividend will be paid on May 18, 2001, to shareholders of record on May 4,
 2001.
     In making the announcement, Perrault said, "We have done an outstanding
 job holding our margin in a period of rapidly falling market interest rates.
 Our challenge has been, and will continue to be, generating loan volumes to
 keep pace with loan payoffs driven by declining market interest rates.  We
 will meet this challenge in the Chittenden Way, maintaining our high credit
 quality standards.  Our asset quality has maintained its characteristic
 strength."
     Chittenden continues to periodically repurchase shares under its share
 repurchase program.  The program authorizes the repurchase of up to 4,000,000
 shares of the Corporation's common stock (approximately 14% of the Company's
 outstanding Common Stock at the time it was announced).  As of March 31, 2001,
 approximately 2.9 million shares had been repurchased.  Based on the
 resolution passed by the Corporation's Board of Directors, the Company has
 until July 2002 to purchase the remaining 1.1 million shares authorized.
     On January 26, 2001, Chittenden Corporation announced that it had signed a
 definitive merger agreement with Maine Bank Corp., headquartered in Portland,
 Maine whereby Chittenden will acquire Maine Bank Corp., and its subsidiary,
 Maine Bank & Trust for $49.25 million in cash.  Consummation of the agreement
 is subject to regulatory approvals.  The acquisition has received the approval
 of the shareholders of Maine Bank Corp., the Federal Reserve Bank of Boston,
 and the State of Maine Bureau of Banking, and is expected to close in the
 second quarter of 2001.  Perrault also added, "We look forward to Maine Bank
 and Trust joining us as early as the end of this month."
     Total assets declined from $3.8 billion at March 31, 2000 to $3.7 billion
 at March 31, 2001.  Total loans decreased $156 million to $2.8 billion at
 March 31, 2001.  Residential real estate loans accounted for $80 million of
 the decline due to higher levels of prepayments caused by declining market
 interest rates.  During the quarter, the Company originated predominantly
 fixed rate residential loans, which were sold on the secondary market rather
 than variable rate residential real estate loans, which it keeps in portfolio.
     Consumer loans declined $108 million from March 31, 2000.  Of that amount,
 approximately $39 million was due to the sale of the retail credit card
 portfolio (see below).  In addition, paydowns on the automotive finance
 portfolio, driven by lower market interest rates, outpaced originations. The
 Company's decision effective January 1, 2001, to concentrate its lease
 origination efforts in Vermont, while scaling back in Massachusetts, also
 affected automotive finance originations in the first quarter of 2001.
     Overall commercial balances remained flat from year-end, with commercial
 real estate loans down $20 million while commercial loans increased by the
 same amount.  The decline in commercial real estate was also due to the
 declining rate environment in which institutional lenders, such as insurance
 companies, actively solicit the Company's customers with long term fixed rate
 financing.  The commercial portfolio at March 31, 2001 is $44 million higher
 than a year ago, with growth in both the commercial real estate and commercial
 categories.
     Total deposits declined approximately $69 million from year-end, primarily
 in demands and money market/savings accounts.  Much of this was due to lower
 municipal and commercial deposits resulting from seasonal declines as well as
 lower levels of liquidity in these sectors.
     The net interest margin for the first quarter of 2001 was 4.78%, compared
 with 4.81% in the same period of 2000, and 4.70% for the fourth quarter of
 2000.  Net interest income was $40.2 million for the first quarter of 2001 and
 $42.7 million for the first quarter of 2000.  The decrease in net interest
 income from the first quarter of 2000 was attributed primarily to lower levels
 of earning assets, of which approximately $63.5 million related to the
 Company's repurchase of shares.  Of the eight basis point increase in the
 margin from the fourth quarter of 2000, approximately half was attributed to
 the Company's asset/liability mix and two fewer days in the first quarter than
 in the fourth quarter.
     The provision for possible loan losses was $1,950,000 in 2001 as compared
 to $2,175,000 in 2000.  The lower provision in 2001 was due to the sale of the
 retail credit card portfolio.  Net retail credit card charge-offs in 2000 were
 $1.3 million or approximately $325,000 per quarter.
     Noninterest income amounted to $17.2 million for the first quarter of
 2001, up from $13.5 million for the same period last year.  Gains on sale of
 loans consisted of $641,000 from mortgage banking activities and a $4.3
 million gain on the sale of the Company's retail credit card portfolio.  This
 sale does not affect Chittenden's business credit card portfolio and
 Chittenden will continue to offer ATM/Check cards with the VISA logo.  Also
 affecting the net increase was a decline in service charges on deposit
 accounts.  This decline was due to a decrease in overdraft fees collected,
 which was partially offset by an increase in cash management fee income.  Also
 included in other noninterest income was $428,000 in losses incurred on the
 restructuring of the investment portfolio early in the quarter.
     The net gain of $4.3 million on the sale of the Company's retail credit
 card portfolio was substantially offset by the following charges:  $600,000
 accrued for medical and dental claims incurred but not yet reported (IBNR);
 $428,000 in investment losses; $700,000 accrued in relation to space vacated
 by restructurings; $850,000 in conversion and miscellaneous charge-offs;
 $225,000 for an additional accrual for residual losses on the auto lease
 portfolio; and legal fees of $200,000 due to the settlement of several ongoing
 matters.
     Noninterest expenses were $33.0 million for the first quarter of 2001
 compared to $32.8 million for the first quarter of 2000.  Salaries and
 employee benefits increased $1.5 million over the first three months of 2000.
 This increase was attributable to a $1.3 million pension curtailment gain
 taken in the first quarter of 2000 upon the merger of the Vermont National and
 Chittenden Bank pension plans and to the accrual for IBNR referred to above.
 The amount of the accrual was adjusted to reflect an increase in the number of
 participants in the Company's plan resulting from the addition of former
 Vermont National Bank employees, as well as employees of The Bank of Western
 Massachusetts, Flagship Bank, and the Pomerleau Agency, which have also
 recently been added to the plan.  Salaries were $800,000 lower in 2001 than in
 2000 due to lower staffing levels.  Net occupancy expenses for the first
 quarter of 2001 were $4.7 million compared with $4.8 million a year ago and
 $3.8 million for the fourth quarter of 2000.  The increase over the
 consecutive quarter was due to the accrual for vacated space referred to
 above.
     During the first quarter of 2000 the Company recorded a pre-tax loss of
 $833,000 on the sale of the final Vermont National branch required to be
 divested as a condition of regulatory approval of the VFSC acquisition.  After
 income taxes, the net loss recorded in the first quarter of 2000 as a result
 of the divestiture was $792,000.  Included in the divestiture were $27.1
 million in deposits and $3.9 million in loans.  The magnitude of the after-tax
 loss compared to the pre-tax loss is caused by the non-deductibility for
 income tax purposes of the goodwill allocation.  Including the loss on the
 sale of the branch, and the associated goodwill allocation, net income for the
 first quarter of 2000 was $14.6 million, or $0.51 per diluted share.
     The Corporation's effective income tax rates were 35.44% for the 2001
 quarter and 30.52% for the 2000 quarter, after adjusting for the tax effect of
 the branch sale.  In addition, the 2000 provision was reduced by approximately
 $750,000 for the effect of the exercise of non-qualified stock options.
 Excluding this amount, the 2000 effective tax rate would have been 33.91%.
 The increase from this amount to the 35.44% for the first quarter of 2001 is
 primarily attributable to increases in taxable income at the Massachusetts
 banks, relative to the Vermont bank.
     The return on average equity was 17.15% for the first quarter of 2001,
 compared with an operating ROE of 17.35% in the same quarter of 2000.  The
 return on average assets for the first quarter of 2001 was 1.61%, flat with
 the operating ROA of 1.60% for the first quarter of 2000.
     The allowance for possible loan losses was $39.5 million at March 31,
 2001, down from $41.2 million a year ago, and down from $40.3 million at
 December 31, 2000.  Nonperforming assets were $11.9 million at March 31, 2001,
 flat to December 31, 2000 and the end of the first quarter of 2000.  Net
 charge-off activity totaled $2.7 million for the first quarter of 2001 and
 $2.0 million for the first quarter of 2000, or 0.09% and 0.07%, of average
 loans for the respective periods.  Included in net charge-offs for the first
 quarter of 2001 is approximately $300,000 of retail credit card charge-offs
 recognized before the sale of that portfolio.
     Kirk W. Walters, Executive Vice President and Chief Financial Officer of
 Chittenden Corporation, will host a conference call to discuss the earnings
 results at 1 p.m. eastern time on April 19, 2001.  Interested parties may
 access the conference call by calling 877-715-5317.  Participants are asked to
 call in a few minutes prior to the call in order to register for the event.
     Internet access to the call is also available (listen only) by going to
 the Shareholders' Resource section of the Company's website at
 https://www.chittenden.com/corp.php. A replay of the call will be available
 through April 24, 2001, by calling 877-519-4471 (pin number is 2536349) or by
 going to the chittenden.com website.
     The Company may answer one or more questions concerning business and
 financial developments and trends and other business and financial matters
 affecting the Company, some of the responses to which may contain information
 that has not previously been disclosed.
 
     Chittenden is a bank holding company with total assets of $3.7 billion at
 March 31, 2001. Its subsidiary banks are Chittenden Bank, The Bank of Western
 Massachusetts, and Flagship Bank and Trust Company.  Chittenden Bank also
 operates under the names First Savings of New Hampshire and Mortgage Service
 Center, and it owns The Pomerleau Agency, and Chittenden Securities, Inc.  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.
 
 
     CHITTENDEN CORPORATION
     SELECTED FINANCIAL DATA
     (Unaudited)
     (In Thousands, except for ratios, shares and per share amounts)
 
     Period End Balance Sheet Data   3/31/01        12/31/00       3/31/00
 
     Cash and Cash Equivalents      $192,047        $178,621      $128,242
 
     Securities                      546,991         585,281       637,238
     FHLB Stock                       12,927          12,311        11,558
     Loans Held For Sale              25,422          44,950         1,625
 
     Loans:
     Commercial                      535,518         515,926       520,329
     Municipal                        93,848          83,566        98,527
     Real Estate:
     Residential                     987,142       1,024,174     1,067,505
     Commercial                      703,336         723,339       674,126
     Construction                     52,814          57,701        60,752
     Total Real Estate             1,743,292       1,805,214     1,802,383
     Consumer                        429,588         451,392       537,517
 
     Total Loans                   2,802,246       2,856,098     2,958,756
     Less: Allowance for Possible
      Loan Losses                   (39,546)        (40,255)      (41,228)
     Net Loans                     2,762,700       2,815,843     2,917,528
 
     Other Real Estate Owned             328             513           690
     Goodwill                         15,210          15,721        17,257
     Other Assets                    117,072         116,621       124,899
 
     Total Assets                 $3,672,697      $3,769,861    $3,839,037
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Liabilities:
     Deposits:
     Demand                         $481,119        $530,975      $499,398
     Money Market and Savings      1,902,051       1,934,227     1,840,668
     Certificates of Deposit
      less than $100,000
      and Other Time Deposits        617,988         615,336       630,244
     Certificates of Deposit
      $100,000 and Over              222,097         211,869       216,387
     Total Deposits                3,223,255       3,292,407     3,186,697
 
     Short-Term Borrowings            45,425          93,757       254,323
     Accrued Expenses and
      Other Liabilities               58,641          41,631        46,448
     Total Liabilities             3,327,321       3,427,795     3,487,468
 
     Total Stockholders' Equity      345,376         342,066       351,569
 
     Total Liabilities and
      Stockholders' Equity        $3,672,697      $3,769,861    $3,839,037
 
     Book Value per Common Share      $13.42          $13.11        $12.68
     Common Shares Outstanding    25,742,410      26,097,084    27,725,668
 
     Credit Quality Data
     Nonperforming Assets
      (including OREO)               $11,888         $11,889       $11,970
     90 days past due and
      still accruing                   4,318           4,595         6,594
     Nonperforming Assets to
      Loans Plus OREO                  0.42%           0.42%         0.41%
     Allowance to Loans                1.41%           1.41%         1.40%
     Allowance to Nonperforming
      Loans (excluding OREO)         342.09%         353.86%       365.50%
 
     QTD Average Balance Sheet Data
     Loans, Net                   $2,791,707      $2,879,986    $2,878,805
     Earning Assets                3,453,851       3,543,882     3,601,692
     Total Assets                  3,658,274       3,751,586     3,855,612
     Deposits                      3,193,635       3,256,504     3,186,530
     Stockholders' Equity            343,077         338,316       356,639
 
 
     CHITTENDEN CORPORATION
     CONSOLIDATED STATEMENTS OF INCOME
     (Unaudited)
     (In Thousands, except for ratios, shares and per share amounts)
 
                                                        For the Three Months
                                                          Ended March 31,
                                                        2001          2000
 
     Interest Income:
     Interest on Loans                                $58,108        $59,829
     Interest on Investments                           10,031         10,836
     Total Interest Income                             68,139         70,665
 
     Interest Expense:
     Deposits                                          26,970         24,479
     Short-term Borrowings                                993          3,450
     Total Interest Expense                            27,963         27,929
 
     Net Interest Income                               40,176         42,736
     Provision for Possible Loan Losses                 1,950          2,175
 
     Net Interest Income after Provision
      for Possible Loan Losses                         38,226         40,561
 
     Noninterest Income:
     Investment Management and Trust Income             3,376          3,494
     Service Charges on Deposit Accounts                3,349          3,662
     Mortgage Servicing Income                            978            936
     Gains on Sales of Loans, Net                       4,940            573
     Credit Card Income, Net                            1,000          1,117
     Insurance Commissions, Net                           894            781
     Other                                              2,663          2,970
     Total Noninterest Income                          17,200         13,533
 
     Noninterest Expense:
     Salaries and Employee Benefits                    17,785         16,329
     Net Occupancy Expense                              4,735          4,834
     Other Real Estate Owned, Net                          39           (50)
     Amortization of Intangibles                          512            540
     Special Charges                                        -            833
     Other                                              9,878         10,301
     Total Noninterest Expense                         32,949         32,787
 
     Income Before Income Taxes                        22,477         21,307
     Income Tax Expense                                 7,965          6,716
 
     Net Income                                       $14,512        $14,591
 
     Weighted Average Common Shares Outstanding    25,958,846     28,128,323
     Weighted Average Common and
     Common Equivalent Shares Outstanding          26,236,795     28,500,883
 
     Earnings Per Share, Basic                          $0.56          $0.52
     Earnings Per Share, Diluted                         0.55           0.51
     Dividends Per Share                                 0.24           0.22
 
     Operating Net Income                             $14,512        $15,383
     Operating Earnings Per Share, Basic                 0.56           0.55
     Operating Earnings Per Share, Diluted               0.55           0.54
 
     Return on Average Equity (1)                      17.15%         17.35%
     Return on Average Assets (1)                       1.61%          1.60%
     Net Yield on Earning Assets                        4.78%          4.81%
 
     (1) Returns on Average Equity and Assets are on an operating basis in
     2000.
 
 

SOURCE Chittenden Corporation
    BURLINGTON, Vt., April 18 /PRNewswire/ -- Chittenden Corporation
 (NYSE:   CHZ) Chairman, President and Chief Executive Officer, Paul A. Perrault,
 today announced first quarter 2001 net income of $14.5 million compared to
 operating net income of $15.4 million earned in the same period last year.
 This represents $0.55 per diluted share, compared to the $0.54 per diluted
 share earned on an operating basis in the first quarter of 2000.  The decline
 in net income was primarily attributable to the Corporation's share repurchase
 program.  Chittenden also announced its quarterly dividend of $0.24 per share.
 The dividend will be paid on May 18, 2001, to shareholders of record on May 4,
 2001.
     In making the announcement, Perrault said, "We have done an outstanding
 job holding our margin in a period of rapidly falling market interest rates.
 Our challenge has been, and will continue to be, generating loan volumes to
 keep pace with loan payoffs driven by declining market interest rates.  We
 will meet this challenge in the Chittenden Way, maintaining our high credit
 quality standards.  Our asset quality has maintained its characteristic
 strength."
     Chittenden continues to periodically repurchase shares under its share
 repurchase program.  The program authorizes the repurchase of up to 4,000,000
 shares of the Corporation's common stock (approximately 14% of the Company's
 outstanding Common Stock at the time it was announced).  As of March 31, 2001,
 approximately 2.9 million shares had been repurchased.  Based on the
 resolution passed by the Corporation's Board of Directors, the Company has
 until July 2002 to purchase the remaining 1.1 million shares authorized.
     On January 26, 2001, Chittenden Corporation announced that it had signed a
 definitive merger agreement with Maine Bank Corp., headquartered in Portland,
 Maine whereby Chittenden will acquire Maine Bank Corp., and its subsidiary,
 Maine Bank & Trust for $49.25 million in cash.  Consummation of the agreement
 is subject to regulatory approvals.  The acquisition has received the approval
 of the shareholders of Maine Bank Corp., the Federal Reserve Bank of Boston,
 and the State of Maine Bureau of Banking, and is expected to close in the
 second quarter of 2001.  Perrault also added, "We look forward to Maine Bank
 and Trust joining us as early as the end of this month."
     Total assets declined from $3.8 billion at March 31, 2000 to $3.7 billion
 at March 31, 2001.  Total loans decreased $156 million to $2.8 billion at
 March 31, 2001.  Residential real estate loans accounted for $80 million of
 the decline due to higher levels of prepayments caused by declining market
 interest rates.  During the quarter, the Company originated predominantly
 fixed rate residential loans, which were sold on the secondary market rather
 than variable rate residential real estate loans, which it keeps in portfolio.
     Consumer loans declined $108 million from March 31, 2000.  Of that amount,
 approximately $39 million was due to the sale of the retail credit card
 portfolio (see below).  In addition, paydowns on the automotive finance
 portfolio, driven by lower market interest rates, outpaced originations. The
 Company's decision effective January 1, 2001, to concentrate its lease
 origination efforts in Vermont, while scaling back in Massachusetts, also
 affected automotive finance originations in the first quarter of 2001.
     Overall commercial balances remained flat from year-end, with commercial
 real estate loans down $20 million while commercial loans increased by the
 same amount.  The decline in commercial real estate was also due to the
 declining rate environment in which institutional lenders, such as insurance
 companies, actively solicit the Company's customers with long term fixed rate
 financing.  The commercial portfolio at March 31, 2001 is $44 million higher
 than a year ago, with growth in both the commercial real estate and commercial
 categories.
     Total deposits declined approximately $69 million from year-end, primarily
 in demands and money market/savings accounts.  Much of this was due to lower
 municipal and commercial deposits resulting from seasonal declines as well as
 lower levels of liquidity in these sectors.
     The net interest margin for the first quarter of 2001 was 4.78%, compared
 with 4.81% in the same period of 2000, and 4.70% for the fourth quarter of
 2000.  Net interest income was $40.2 million for the first quarter of 2001 and
 $42.7 million for the first quarter of 2000.  The decrease in net interest
 income from the first quarter of 2000 was attributed primarily to lower levels
 of earning assets, of which approximately $63.5 million related to the
 Company's repurchase of shares.  Of the eight basis point increase in the
 margin from the fourth quarter of 2000, approximately half was attributed to
 the Company's asset/liability mix and two fewer days in the first quarter than
 in the fourth quarter.
     The provision for possible loan losses was $1,950,000 in 2001 as compared
 to $2,175,000 in 2000.  The lower provision in 2001 was due to the sale of the
 retail credit card portfolio.  Net retail credit card charge-offs in 2000 were
 $1.3 million or approximately $325,000 per quarter.
     Noninterest income amounted to $17.2 million for the first quarter of
 2001, up from $13.5 million for the same period last year.  Gains on sale of
 loans consisted of $641,000 from mortgage banking activities and a $4.3
 million gain on the sale of the Company's retail credit card portfolio.  This
 sale does not affect Chittenden's business credit card portfolio and
 Chittenden will continue to offer ATM/Check cards with the VISA logo.  Also
 affecting the net increase was a decline in service charges on deposit
 accounts.  This decline was due to a decrease in overdraft fees collected,
 which was partially offset by an increase in cash management fee income.  Also
 included in other noninterest income was $428,000 in losses incurred on the
 restructuring of the investment portfolio early in the quarter.
     The net gain of $4.3 million on the sale of the Company's retail credit
 card portfolio was substantially offset by the following charges:  $600,000
 accrued for medical and dental claims incurred but not yet reported (IBNR);
 $428,000 in investment losses; $700,000 accrued in relation to space vacated
 by restructurings; $850,000 in conversion and miscellaneous charge-offs;
 $225,000 for an additional accrual for residual losses on the auto lease
 portfolio; and legal fees of $200,000 due to the settlement of several ongoing
 matters.
     Noninterest expenses were $33.0 million for the first quarter of 2001
 compared to $32.8 million for the first quarter of 2000.  Salaries and
 employee benefits increased $1.5 million over the first three months of 2000.
 This increase was attributable to a $1.3 million pension curtailment gain
 taken in the first quarter of 2000 upon the merger of the Vermont National and
 Chittenden Bank pension plans and to the accrual for IBNR referred to above.
 The amount of the accrual was adjusted to reflect an increase in the number of
 participants in the Company's plan resulting from the addition of former
 Vermont National Bank employees, as well as employees of The Bank of Western
 Massachusetts, Flagship Bank, and the Pomerleau Agency, which have also
 recently been added to the plan.  Salaries were $800,000 lower in 2001 than in
 2000 due to lower staffing levels.  Net occupancy expenses for the first
 quarter of 2001 were $4.7 million compared with $4.8 million a year ago and
 $3.8 million for the fourth quarter of 2000.  The increase over the
 consecutive quarter was due to the accrual for vacated space referred to
 above.
     During the first quarter of 2000 the Company recorded a pre-tax loss of
 $833,000 on the sale of the final Vermont National branch required to be
 divested as a condition of regulatory approval of the VFSC acquisition.  After
 income taxes, the net loss recorded in the first quarter of 2000 as a result
 of the divestiture was $792,000.  Included in the divestiture were $27.1
 million in deposits and $3.9 million in loans.  The magnitude of the after-tax
 loss compared to the pre-tax loss is caused by the non-deductibility for
 income tax purposes of the goodwill allocation.  Including the loss on the
 sale of the branch, and the associated goodwill allocation, net income for the
 first quarter of 2000 was $14.6 million, or $0.51 per diluted share.
     The Corporation's effective income tax rates were 35.44% for the 2001
 quarter and 30.52% for the 2000 quarter, after adjusting for the tax effect of
 the branch sale.  In addition, the 2000 provision was reduced by approximately
 $750,000 for the effect of the exercise of non-qualified stock options.
 Excluding this amount, the 2000 effective tax rate would have been 33.91%.
 The increase from this amount to the 35.44% for the first quarter of 2001 is
 primarily attributable to increases in taxable income at the Massachusetts
 banks, relative to the Vermont bank.
     The return on average equity was 17.15% for the first quarter of 2001,
 compared with an operating ROE of 17.35% in the same quarter of 2000.  The
 return on average assets for the first quarter of 2001 was 1.61%, flat with
 the operating ROA of 1.60% for the first quarter of 2000.
     The allowance for possible loan losses was $39.5 million at March 31,
 2001, down from $41.2 million a year ago, and down from $40.3 million at
 December 31, 2000.  Nonperforming assets were $11.9 million at March 31, 2001,
 flat to December 31, 2000 and the end of the first quarter of 2000.  Net
 charge-off activity totaled $2.7 million for the first quarter of 2001 and
 $2.0 million for the first quarter of 2000, or 0.09% and 0.07%, of average
 loans for the respective periods.  Included in net charge-offs for the first
 quarter of 2001 is approximately $300,000 of retail credit card charge-offs
 recognized before the sale of that portfolio.
     Kirk W. Walters, Executive Vice President and Chief Financial Officer of
 Chittenden Corporation, will host a conference call to discuss the earnings
 results at 1 p.m. eastern time on April 19, 2001.  Interested parties may
 access the conference call by calling 877-715-5317.  Participants are asked to
 call in a few minutes prior to the call in order to register for the event.
     Internet access to the call is also available (listen only) by going to
 the Shareholders' Resource section of the Company's website at
 https://www.chittenden.com/corp.php. A replay of the call will be available
 through April 24, 2001, by calling 877-519-4471 (pin number is 2536349) or by
 going to the chittenden.com website.
     The Company may answer one or more questions concerning business and
 financial developments and trends and other business and financial matters
 affecting the Company, some of the responses to which may contain information
 that has not previously been disclosed.
 
     Chittenden is a bank holding company with total assets of $3.7 billion at
 March 31, 2001. Its subsidiary banks are Chittenden Bank, The Bank of Western
 Massachusetts, and Flagship Bank and Trust Company.  Chittenden Bank also
 operates under the names First Savings of New Hampshire and Mortgage Service
 Center, and it owns The Pomerleau Agency, and Chittenden Securities, Inc.  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.
 
 
     CHITTENDEN CORPORATION
     SELECTED FINANCIAL DATA
     (Unaudited)
     (In Thousands, except for ratios, shares and per share amounts)
 
     Period End Balance Sheet Data   3/31/01        12/31/00       3/31/00
 
     Cash and Cash Equivalents      $192,047        $178,621      $128,242
 
     Securities                      546,991         585,281       637,238
     FHLB Stock                       12,927          12,311        11,558
     Loans Held For Sale              25,422          44,950         1,625
 
     Loans:
     Commercial                      535,518         515,926       520,329
     Municipal                        93,848          83,566        98,527
     Real Estate:
     Residential                     987,142       1,024,174     1,067,505
     Commercial                      703,336         723,339       674,126
     Construction                     52,814          57,701        60,752
     Total Real Estate             1,743,292       1,805,214     1,802,383
     Consumer                        429,588         451,392       537,517
 
     Total Loans                   2,802,246       2,856,098     2,958,756
     Less: Allowance for Possible
      Loan Losses                   (39,546)        (40,255)      (41,228)
     Net Loans                     2,762,700       2,815,843     2,917,528
 
     Other Real Estate Owned             328             513           690
     Goodwill                         15,210          15,721        17,257
     Other Assets                    117,072         116,621       124,899
 
     Total Assets                 $3,672,697      $3,769,861    $3,839,037
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Liabilities:
     Deposits:
     Demand                         $481,119        $530,975      $499,398
     Money Market and Savings      1,902,051       1,934,227     1,840,668
     Certificates of Deposit
      less than $100,000
      and Other Time Deposits        617,988         615,336       630,244
     Certificates of Deposit
      $100,000 and Over              222,097         211,869       216,387
     Total Deposits                3,223,255       3,292,407     3,186,697
 
     Short-Term Borrowings            45,425          93,757       254,323
     Accrued Expenses and
      Other Liabilities               58,641          41,631        46,448
     Total Liabilities             3,327,321       3,427,795     3,487,468
 
     Total Stockholders' Equity      345,376         342,066       351,569
 
     Total Liabilities and
      Stockholders' Equity        $3,672,697      $3,769,861    $3,839,037
 
     Book Value per Common Share      $13.42          $13.11        $12.68
     Common Shares Outstanding    25,742,410      26,097,084    27,725,668
 
     Credit Quality Data
     Nonperforming Assets
      (including OREO)               $11,888         $11,889       $11,970
     90 days past due and
      still accruing                   4,318           4,595         6,594
     Nonperforming Assets to
      Loans Plus OREO                  0.42%           0.42%         0.41%
     Allowance to Loans                1.41%           1.41%         1.40%
     Allowance to Nonperforming
      Loans (excluding OREO)         342.09%         353.86%       365.50%
 
     QTD Average Balance Sheet Data
     Loans, Net                   $2,791,707      $2,879,986    $2,878,805
     Earning Assets                3,453,851       3,543,882     3,601,692
     Total Assets                  3,658,274       3,751,586     3,855,612
     Deposits                      3,193,635       3,256,504     3,186,530
     Stockholders' Equity            343,077         338,316       356,639
 
 
     CHITTENDEN CORPORATION
     CONSOLIDATED STATEMENTS OF INCOME
     (Unaudited)
     (In Thousands, except for ratios, shares and per share amounts)
 
                                                        For the Three Months
                                                          Ended March 31,
                                                        2001          2000
 
     Interest Income:
     Interest on Loans                                $58,108        $59,829
     Interest on Investments                           10,031         10,836
     Total Interest Income                             68,139         70,665
 
     Interest Expense:
     Deposits                                          26,970         24,479
     Short-term Borrowings                                993          3,450
     Total Interest Expense                            27,963         27,929
 
     Net Interest Income                               40,176         42,736
     Provision for Possible Loan Losses                 1,950          2,175
 
     Net Interest Income after Provision
      for Possible Loan Losses                         38,226         40,561
 
     Noninterest Income:
     Investment Management and Trust Income             3,376          3,494
     Service Charges on Deposit Accounts                3,349          3,662
     Mortgage Servicing Income                            978            936
     Gains on Sales of Loans, Net                       4,940            573
     Credit Card Income, Net                            1,000          1,117
     Insurance Commissions, Net                           894            781
     Other                                              2,663          2,970
     Total Noninterest Income                          17,200         13,533
 
     Noninterest Expense:
     Salaries and Employee Benefits                    17,785         16,329
     Net Occupancy Expense                              4,735          4,834
     Other Real Estate Owned, Net                          39           (50)
     Amortization of Intangibles                          512            540
     Special Charges                                        -            833
     Other                                              9,878         10,301
     Total Noninterest Expense                         32,949         32,787
 
     Income Before Income Taxes                        22,477         21,307
     Income Tax Expense                                 7,965          6,716
 
     Net Income                                       $14,512        $14,591
 
     Weighted Average Common Shares Outstanding    25,958,846     28,128,323
     Weighted Average Common and
     Common Equivalent Shares Outstanding          26,236,795     28,500,883
 
     Earnings Per Share, Basic                          $0.56          $0.52
     Earnings Per Share, Diluted                         0.55           0.51
     Dividends Per Share                                 0.24           0.22
 
     Operating Net Income                             $14,512        $15,383
     Operating Earnings Per Share, Basic                 0.56           0.55
     Operating Earnings Per Share, Diluted               0.55           0.54
 
     Return on Average Equity (1)                      17.15%         17.35%
     Return on Average Assets (1)                       1.61%          1.60%
     Net Yield on Earning Assets                        4.78%          4.81%
 
     (1) Returns on Average Equity and Assets are on an operating basis in
     2000.
 
 SOURCE  Chittenden Corporation

RELATED LINKS

http://www.chittenden.com