HISTORICAL SELECTED FINANCIAL DATA CHITTENDEN CORPORATION Nine Months Years Ended Ended Sept. 30, December 31, 1994 1993 1992 ---- ---- ---- (In thousands, except share amounts) Statements of Operations Interest Income $ 61,801 $ 79,803 $ 86,984 Interest Expense 22,027 29,574 41,300 ---------- ---------- ---------- Net Interest Income 39,774 50,229 45,684 Provision for possible loan losses 3,400 6,600 7,513 ---------- ---------- ---------- Net interest income after provision for possible loan losses 36,374 43,629 38,171 Noninterest income 17,035 24,308 21,073 Noninterest expense 36,543 51,097 49,582 ---------- ---------- ---------- Income (loss) before provision (benefit) for income taxes 16,866 16,840 9,662 Provision (benefit) for income taxes 5,615 5,243 2,444 ---------- ---------- ---------- Income (loss) before cumulative effect of change in accounting principle 11,251 11,597 7,218 Cumulative effect of change in accounting principle 0 (575) 0 ---------- ---------- ---------- Net Income (loss) 11,251 11,022 7,218 Preferred stock dividends 0 0 0 ---------- ---------- ---------- Net income (loss) applicable to common stock $ 11,251 $ 11,022 $ 7,218 ========== ========== ========== Total assets at period-end $1,223,593 $1,231,003 $1,192,068 Long-term debt at period-end 0 0 59 Balance sheets-average daily balances: Total assets $1,192,163 $1,172,809 $1,171,060 Loans, net of allowance 824,956 852,958 844,126 Investment securities and interest- bearing cash equivalents 269,858 220,927 222,428 Total deposits 1,044,580 1,030,839 1,021,827 Long-term debt 0 7 2,034 Total stockholders' equity 100,618 92,813 83,520 Per common share: Net income (loss) $ 1.77 $ 1.78 $ 1.17 Cash dividends declared 0.33 0.20 0.13 Book value 16.53 15.73 14.04 Weighted average common shares outstanding 6,366,107 6,206,848 6,193,944 HISTORICAL SELECTED FINANCIAL DATA CHITTENDEN CORPORATION Years Ended December 31, 1991 1990 1989 ---- ---- ---- (In thousands, except share amounts) Statements of Operations Interest Income $ 100,061 $ 106,182 $ 109,971 Interest Expense 57,972 63,410 64,004 ---------- ---------- ---------- Net Interest Income 42,089 42,772 45,967 Provision for possible loan losses 8,843 12,189 10,830 Net interest income after provision for possible loan losses 33,246 30,583 35,137 Noninterest income 18,442 16,529 17,424 Noninterest expense 45,847 50,378 46,601 ---------- ---------- ---------- Income (loss) before provision (benefit) for income taxes 5,841 (3,266) 5,960 Provision (benefit) for income taxes 1,234 (2,219) 1,006 ---------- ---------- ---------- Income (loss) before cumulative effect of change in accounting principle 4,607 (1,047) 4,954 Cumulative effect of change in accounting principle - - - ---------- ---------- ---------- Net income (loss) 4,607 (1,047) 4,954 Preferred stock dividends 0 0 15 ---------- ---------- ---------- Net income (loss) applicable to common stock $ 4,607 $ (1,047) $ 4,939 ========== ========== ========== Total assets at period-end $1,204,949 $1,136,988 $1,098,734 Long-term debt at period-end 2,473 2,473 7,732 Balance sheets-average daily balances: Total assets $1,115,744 $1,094,984 $1,096,016 Loans, net of allowance 828,433 847,440 851,059 Investment securities and interest- bearing cash equivalents 191,244 147,353 148,142 Total deposits 992,017 959,297 952,431 Long-term debt 2,473 6,368 9,992 Total stockholders' equity 74,476 74,338 78,621 Per common share: Net income (loss) $ 0.74 $ (0.17) $ 0.79 Cash dividends declared 0.00 0.29 0.54 Book value 12.79 11.59 12.24 Weighted average common shares outstanding 6,186,600 6,192,416 6,258,399 HISTORICAL SELECTED FINANCIAL DATA CHITTENDEN CORPORATION (Cont'd.) Nine Months Years Ended Ended Sept. 30, December 31, 1994 1993 1992 ---- ---- ---- Selected financial percentages: Return on average total assets (1) 1.26% 0.94% 0.62% Return on average common stockholders' equity (1) 14.95 11.88 8.64 Interest rate spread 4.32 4.20 3.78 Net yield on earning assets 4.87 4.68 4.35 Net charge-offs as a percent of average loans 0.38 0.47 0.64 Nonperforming asset ratio (2) 1.06 1.84 2.79 Allowance for possible loan losses as a percent of period-end loans 2.20 2.22 1.87 Period-end leverage capital ratio 8.83 8.13 7.30 Period-end primary capital ratio NA NA NA Risk-based capital ratios: Tier I 11.95 11.05 9.64 Total 13.32 12.41 10.95 Average stockholders' equity to average assets 8.44 7.91 7.13 Common stock dividend payout ratio (3) 18.64 11.28 11.44 - ---------------------------------------- (1) Income used in the calculation is net income (loss) applicable to common stock. (2) The sum of nonperforming assets (nonaccrual loans, restructured loans,and other real estate owned) divided by the sum of total loans and other real estate owned. (3) Common stock cash dividends declared divided by net income applicable to common stock. HISTORICAL SELECTED FINANCIAL DATA CHITTENDEN CORPORATION (Cont'd.) Years Ended December 31, 1991 1990 1989 ---- ---- ---- Selected financial percentages: Return on average total assets (1) 0.41% (0.10%) 0.45% Return on average common stockholders' equity (1) 6.19 (1.41) 6.28 Interest rate spread 3.41 3.53 3.72 Net yield on earning assets 4.22 4.44 4.74 Net charge-offs as a percent of average loans 0.89 1.44 0.53 Nonperforming asset ratio (2) 3.75 3.42 3.70 Allowance for possible loan losses as a percent of period-end loans 1.73 1.56 1.52 Period-end leverage capital ratio 6.86 NA NA Period-end primary capital ratio NA 7.36 8.03 Risk-based capital ratios: Tier I 8.53 7.88 NA Total 10.04 9.36 NA Average stockholders' equity to average assets 6.68 6.79 7.17 Common stock dividend payout ratio (3) 0.00 NA 68.98 - ---------------------------------------- (1) Income used in the calculation is net income (loss) applicable to common stock. (2) The sum of nonperforming assets (nonaccrual loans, restructured loans,and other real estate owned) divided by the sum of total loans and other real estate owned. (3) Common stock cash dividends declared divided by net income applicable to common stock. HISTORICAL SELECTED FINANCIAL DATA THE BANK OF WESTERN MASSACHUSETTS Nine Months Years Ended Ended Sept. 30, December 31, 1994 1993 1992 ---- ---- ---- (In thousands, except share amounts) Statements of Operations Interest income $ 11,100 $ 12,361 $ 13,292 Interest expense 4,342 5,513 6,812 ---------- ---------- ---------- Net Interest income 6,758 6,848 6,480 Provision for possible loan losses 1,050 960 1,330 ---------- ---------- ---------- Net interest income after provision for possible loan losses 5,708 5,888 5,150 Noninterest income 402 932 776 Noninterest expense 4,366 4,860 4,346 ---------- ---------- ---------- Income (loss) before provision (benefit) for income taxes 1,744 1,960 1,580 Provision (benefit) for income taxes 689 758 645 ---------- ---------- ---------- Income (loss) before cumulative effect of change in accounting principle 1,055 1,202 935 Cumulative effect of change in accounting principle 0 0 35 ---------- ---------- ---------- Net income (loss) $ 1,055 $ 1,202 $ 970 ========== ========== ========== Total assets at period-end $ 214,184 $ 205,451 $ 187,516 Long-term debt at period-end 0 0 0 Balance sheets-average daily balances: Total assets $ 205,004 $ 180,863 $ 179,217 Loans, net of allowance 150,092 137,950 135,393 Investment securities and interest- bearing cash equivalents 41,462 31,442 32,458 Total deposits 183,956 162,081 162,473 Total stockholders' equity 16,989 15,405 14,333 Per common share: Net income (loss) $ 57.21 $ 65.19 $ 52.63 Cash dividends declared 0.00 0.00 0.00 Book value 878.73 864.17 798.98 Weighted average common shares outstanding 18,440 18,440 18,432 HISTORICAL SELECTED FINANCIAL DATA THE BANK OF WESTERN MASSACHUSETTS Years Ended December 31, 1991 1990 1989 ---- ---- ---- (In thousands, except share amounts) Statements of Operations Interest income $ 14,842 $ 14,219 $ 9,823 Interest expense 9,045 9,345 6,205 ---------- ---------- ---------- Net Interest income 5,797 4,874 3,618 Provision for possible loan losses 3,500 1,267 411 ---------- ---------- ---------- Net interest income after provision for possible loan losses 2,297 3,607 3,207 Noninterest income 497 157 57 Noninterest expense 3,995 3,465 2,223 ---------- ---------- ---------- Income (loss) before provision (benefit) for income taxes (1,201) 299 1,041 Provision (benefit) for income taxes (409) 93 431 ---------- ---------- ---------- Income (loss) before cumulative effect of change in accounting principle (792) 206 610 Cumulative effect of change in accounting principle 0 0 0 ---------- ---------- ---------- Net income (loss) $ (792) $ 206 $ 610 ========== ========== ========== Total assets at period-end $ 182,799 $ 149,964 $ 118,418 Long-term debt at period-end 0 0 0 Balance sheets-average daily balances: Total assets $ 164,104 $ 137,038 $ 89,823 Loans, net of allowance 133,181 115,450 71,151 Investment securities and interest- bearing cash equivalents 21,020 10,049 6,617 Total deposits 147,839 120,513 75,369 Total stockholders' equity 14,179 14,436 12,146 Per common share: Net income (loss) $ (43.14) $ 11.20 $ 35.56 Cash dividends declared 0.00 0.00 0.00 Book value 745.35 788.49 777.00 Weighted average common shares outstanding 18,365 18,364 17,169 HISTORICAL SELECTED FINANCIAL DATA THE BANK OF WESTERN MASSACHUSETTS (Cont'd.) Nine Months Years Ended Ended Sept. 30, December 31, 1994 1993 1992 ---- ---- ---- Selected financial percentages: Return on average total assets (1) 0.69% 0.66% 0.54% Return on average common stockholders' equity (1) 8.52 7.80 6.77 Interest rate spread 4.26 3.44 3.24 Net yield on earning assets 4.72 3.96 3.79 Net charge-offs as a percent of average loans 0.50 0.70 0.80 Nonperforming asset ratio (2) 2.26 2.85 3.40 Allowance for possible loan losses as a percent of period-end loans 2.17 2.30 2.37 Period-end leverage capital ratio 7.93 7.76 7.86 Period-end primary capital ratio NA NA NA Risk-based capital ratios: Tier I 10.18 9.72 10.59 Total 11.44 11.36 11.85 Average stockholders' equity to average assets 8.08 8.52 8.00 - ---------------------------------------- (1) Income used in the calculation is net income (loss) applicable to common stock. (2) The sum of nonperforming assets (nonaccrual loans, restructured loans,and other real estate owned) divided by the sum of total loans and other real estate owned. HISTORICAL SELECTED FINANCIAL DATA THE BANK OF WESTERN MASSACHUSETTS (Cont'd.) Years Ended December 31, 1991 1990 1989 ---- ---- ---- Selected financial percentages: Return on average total assets (1) (0.48%) 0.15% 0.68% Return on average common stockholders' equity (1) (5.59) 1.43 5.02 Interest rate spread 2.82 2.66 2.66 Net yield on earning assets 3.68 3.74 4.23 Net charge-offs as a percent of average loans 1.50 0.50 0.00 Nonperforming asset ratio (2) 3.21 1.10 0.23 Allowance for possible loan losses as a percent of period-end loans 2.20 1.20 0.92 Period-end leverage capital ratio 7.49 NA NA Period-end primary capital ratio NA 10.59 12.84 Risk-based capital ratios: Tier I 9.66 NA NA Total 10.92 NA NA Average stockholders' equity to average assets 8.64 10.53 13.52 - ---------------------------------------- (1) Income used in the calculation is net income (loss) applicable to common stock. (2) The sum of nonperforming assets (nonaccrual loans, restructured loans,and other real estate owned) divided by the sum of total loans and other real estate owned. UNAUDITED PRO FORMA SELECTED FINANCIAL DATA CC AND BWM Nine Months Ended September 30, 1994 Historical CC BWM Pro Forma ---- ---- ------------ (In thousands, except share amounts) Consolidated Statements of Operations Interest income $ 61,801 $ 11,100 $ 73,077 Interest expense 22,027 4,342 26,466 ---------- ---------- ---------- Net Interest income $ 39,774 $ 6,758 $ 46,611 Provision for possible loan losses 3,400 1,050 4,450 ---------- ---------- ---------- Net interest income after provision for possible loan losses 36,374 5,708 42,161 Noninterest income 17,035 402 17,437 Noninterest expense 36,543 4,366 41,633 ---------- ---------- ---------- Income before income taxes 16,866 1,744 17,965 Income tax expense 5,615 689 6,121 ---------- ---------- ---------- Income before cumulative effect of change in accounting principle 11,251 1,055 11,844 Cumulative effect of change in accounting principle 0 0 0 ---------- ---------- ---------- Net income $ 11,251 $ 1,055 $ 11,844 ========== ========== ========== Per common share: Net income $ 1.77 $ 1.69 Book value 16.53 16.99 Weighted average common and common equivalent shares outstanding 6,366,107 6,993,632 Consolidated Balance Sheet (at September 30, 1994) Total assets $1,223,593 $ 214,184 $1,437,108 Investment securities available for sale 217,995 36,029 254,024 Investment securities held for investment 10,223 0 10,223 Loans (net of unearned income and allowance for possible loan losses) 849,175 160,427 1,008,542 Deposits 1,039,728 185,755 1,225,127 Stockholders' Equity 103,081 16,204 116,669 UNAUDITED PRO FORMA SELECTED FINANCIAL DATA CC AND BWM Year Ended December 31, 1993 Historical CC BWM Pro Forma ---- ---- ------------ (In thousands, except share amounts) Consolidated Statements of Operations Interest income $ 79,803 $ 12,361 $ 92,456 Interest expense 29,574 5,513 35,265 ---------- ---------- ---------- Net Interest income $ 50,229 $ 6,848 $ 57,191 Provision for possible loan losses 6,600 960 7,560 ---------- ---------- ---------- Net interest income after provision for possible loan losses 43,629 5,888 49,631 Noninterest income 24,308 932 25,240 Noninterest expense 51,097 4,860 56,924 ---------- ---------- ---------- Income before income taxes 16,840 1,960 17,947 Income tax expense 5,243 758 5,760 ---------- ---------- ---------- Income before cumulative effect of change in accounting principle 11,597 1,202 12,187 Cumulative effect of change in accounting principle (575) 0 0 ---------- ---------- ---------- Net income $ 11,022 $ 1,202 $ 12,187 ========== ========== ========== Per common share: Net income $ 1.78 $ 1.78 Book value 15.73 Weighted average common and common equivalent shares outstanding 6,206,848 6,834,373 Consolidated Balance Sheet (at September 30, 1994) Total assets Investment securities available for sale Investment securities held for investment Loans (net of unearned income and allowance for possible loan losses) Deposits Stockholders' Equity