Exhibit 99.1

Chittenden Corporation

2 Burlington Square

P.O. Box 820

Burlington, Vermont 05402-0820	Kirk W. Walters
802-658-4000	(802) 660-1561

For Immediate Release

January 15, 2003 03/03

CHITTENDEN REPORTS EARNINGS AND QUARTERLY DIVIDEND

Burlington, VT — Chittenden Corporation (NYSE:CHZ) Chairman, President and Chief Executive Officer, Paul A. Perrault, today announced fourth quarter 2002 net income of $0.55 per diluted share, compared with the $0.46 per diluted share earned in the fourth quarter of 2001. For the year ended December 31, 2002, earnings were $1.96 per diluted share, compared with $1.80 per diluted share earned last year. Chittenden also announced its quarterly dividend of $0.20 per share. The dividend will be paid on February 14, 2003, to shareholders of record on January 31, 2003.

In making the announcement, Perrault said, “Despite its challenges, I am pleased with the results for the year of 2002. Chittenden has enjoyed several successes in the past year, including the completion of the Ocean National acquisition and the signing of a definitive agreement to purchase Granite State Bank, headquartered in Keene, New Hampshire. These are exciting times for Chittenden, its shareholders, employees, and customers, as we chart the course which will propel our future achievements.”

Total loans decreased from a quarter ago, due to the seasonal effect of municipal loans and continued paydowns in the residential real estate and leasing portfolios. These decreases were partially offset by increases in commercial and construction loans. Total loans at December 31, 2002 were $136 million higher than at December 31, 2001 primarily due to the acquisition of Ocean National Bank (ONB), in which approximately $84 million in commercial mortgages and $97 million in residential real estate loans were obtained. On February 28, 2002, Chittenden completed its acquisition of ONB, a $272 million commercial bank headquartered in Kennebunk, Maine for $53.25 million in cash. The transaction has been accounted for as a purchase and, accordingly, ONB’s operations are included in Chittenden¦s consolidated financial statements from the date of acquisition.

Total deposits increased $456 million from a year ago and were down slightly from the third quarter. The increase from December 31, 2001 was partially attributable to the acquisition of ONB, which contributed $239 million in deposits at the date of acquisition, and to continued strong deposit flows throughout the franchise over the last twelve months. The variance from the third quarter of 2002 related primarily to the seasonal drop in the municipal and captive insurance sectors.

Chittenden’s net interest income was $50.1 million for the fourth quarter of 2002, $49.7 million for the third quarter of 2002 and $43.9 million for the fourth quarter a year ago. The 14% increase in net interest income from the fourth quarter of 2001 was attributed primarily to higher levels of average earning assets and deposits that resulted from the acquisition of ONB, growth in deposits, and the Trust Preferred Securities (TPS) issuance. The Company’s net interest margin for the fourth quarter of 2002 was 4.38%, compared with 4.59% for the same period of 2001 and 4.49% for the third quarter of 2002. This decrease in the Company’s net interest margin primarily relates to the strong deposit flows, which were invested in securities. Despite the decline of the Company’s net interest margin, overall net interest income continues to reflect good growth.

-more-

Chittenden Corporation

2 Burlington Square

P.O. Box 820

Burlington, Vermont 05402-0820	Kirk W. Walters
802-658-4000	(802) 660-1561

For Immediate Release

The provision for loan losses of $2.25 million was flat from the third quarter of 2002 and up $225,000 from the same quarter a year ago. The allowance for possible loan losses was $48.2 million at December 31, 2002, unchanged from September 30, 2002 and up from $45.3 million at December 31, 2001. Nonperforming assets plus loans 90 days past due and still accruing were $17.9 million at December 31, 2002, down $1.7 million from the third quarter of 2002 and up $253,000 from December 31, 2001. As a percentage of total loans, nonperforming assets decreased to 49 basis points at December 31, 2002 compared to 54 basis points at September 30, 2002 and 46 basis points for the same quarter a year ago. Net charge-off activity totaled $2.2 million for the fourth quarter of 2002, compared with $2.0 million for the fourth quarter of 2001. Net charge-offs were $8.4 million for 2002 compared with $7.1 million in 2001. As a percentage of average loans, charge-offs were 28 basis points in 2002 compared with 25 basis points for 2001.

Noninterest income amounted to $19.6 million for the fourth quarter of 2002, up from $15.6 million for the same quarter of 2001. The primary drivers of the increase were higher gains on sales of mortgages due to increasingly strong refinancing activity, and higher levels of other noninterest income. The increase in other noninterest income was driven by gains on sales of securities of $10.2 million, which was offset by higher amortization on mortgage servicing rights (MSR) of $250,000 and further provisions for impairment to the MSR asset of $7.3 million. The company rebalanced its securities portfolio during the fourth quarter and realized significant gains as a result of continued declining market interest rates. The impairment charge on the MSR asset resulted from a rapid acceleration of prepayment speeds associated with the underlying loans in the fourth quarter. Additional offsets to the gains of sales of securities were higher employee benefits of approximately $900,000 (primarily due to increased medical costs) and $800,000 of increased operating charge-offs (see below).

Noninterest expenses were $39.9 million for the fourth quarter of 2002, up from $37.0 million in the third quarter of 2002 and $34.7 million for the fourth quarter of 2001. Salaries and employee benefits increased $3.5 million from the fourth quarter of 2001. The inclusion of ONB in 2002 amounted to approximately $1.3 million of the variance in salaries and benefits. In addition, sales-based incentive compensation increased $664,000 and, as discussed above, employee benefits increased from the same period a year ago. Other noninterest expense increased $1.6 million, of which approximately half resulted from higher levels of operating charge-offs. This increase in operating charge-offs primarily related to the auto lease portfolio in which the Company continues to experience losses in excess of its insurance proceeds, due to softness in the wholesale auto market. The Company has exited the lease financing market and the portfolio continues to run off.

Amortization of intangibles decreased $507,000 from the fourth quarter of 2001 to $348,000 in the fourth quarter of 2002 due to the adoption of FAS 142, which eliminated goodwill amortization effective January 1, 2002. The intangible amortization recognized in 2002 relates to the core deposit intangibles from the ONB and the Bank of Western Massachusetts acquisitions.

-more-

Chittenden Corporation

2 Burlington Square

P.O. Box 820

Burlington, Vermont 05402-0820	Kirk W. Walters
802-658-4000	(802) 660-1561

For Immediate Release

In noninterest income on a year-over-year basis, increases were seen in service charges on deposit accounts, insurance commissions and other income. Gains on sales of loans were down $1.1 million from 2001 primarily because of the sale of the Company’s retail credit card portfolio in 2001, which generated a $4.6 million gain. Gains on sales of residential mortgage loans were $3.5 million higher in 2002 due to increased market activity, as noted above. Total securities gains realized in 2002 were $10.6 million compared with a $72,000 loss in 2001. Year-to-date items offsetting the securities gains were MSR impairment provisions of $8.5 million, increased MSR amortization of $1.3 million, and a $571,000 write-down taken in the third quarter relating to one of the Company’s CRA equity investments.

Year-to-date noninterest expenses were up $15.8 million from 2001 primarily due to increases in salaries and benefits, net occupancy expense and other noninterest expenses. Salaries and benefits increased primarily due to the acquisition of ONB and MBT, which accounted for $6.8 million of the increase, sales-based incentive payments, which were $1.9 million higher in 2002 and performance-based incentive accruals, which were up $1.5 million from a year ago. Net occupancy increased $1.8 million; substantially all of which is attributed to the ONB acquisition. Amortization of intangibles decreased $1.7 million from 2001 due to the adoption of FAS 142. In addition, other noninterest expense increased approximately $2.8 million from a year ago, with operating charge-offs comprising approximately $1.3 million of the increase.

The return on average equity was 16.12% for 2002, compared with 16.55% in 2001. The return on average assets for 2002 was 1.40%, compared with 1.51% for 2001.

Kirk W. Walters, Executive Vice President and Chief Financial Officer of Chittenden Corporation, will host a conference call to discuss these earnings results at 10:30 a.m. Eastern Time on January 16, 2003. Interested parties may access the conference call by calling 877-692-2137 or 973-872-3100 in the New York City area. 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 Investor Resources section of the Company’s website at http://www.chittendencorp.com. A replay of the call will be available through January 23, 2003, by calling 877-519-4471 or 973-341-3080 in the New York City area (pin number is 3684563 for both telephone numbers) or by going to the chittendencorp.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.

-more-

Chittenden Corporation

2 Burlington Square

P.O. Box 820

Burlington, Vermont 05402-0820	Kirk W. Walters
802-658-4000	(802) 660-1561

For Immediate Release

Chittenden is a bank holding company with total assets of $4.9 billion at December 31, 2002. Its subsidiary banks are Chittenden Bank, The Bank of Western Massachusetts, Flagship Bank and Trust Company, Maine Bank & Trust Company and Ocean National Bank. Chittenden Bank also operates under the name Mortgage Service Center, and it owns Chittenden Insurance Group, 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.

-more-

CHITTENDEN CORPORATION SELECTED FINANCIAL DATA (Unaudited) (In Thousands, except for ratios, shares and per share amounts)
Period End Balance Sheet Data	12/31/02			9/30/02			6/30/02			12/31/01
Cash and Cash Equivalents	$	192,142		$	300,184		$	195,884		$	308,023
Securities Available For Sale		1,497,111			1,424,513			1,232,549			826,495
FHLB Stock		17,030			14,967			14,967			13,613
Loans Held For Sale		94,874			62,055			27,556			50,208
Loans:
Commercial		568,224			567,939			583,557			559,752
Municipal		77,820			97,912			44,107			85,479
Real Estate:
Residential		861,706			895,472			914,141			855,561
Commercial		1,103,897			1,067,702			1,043,889			903,819
Construction		85,512			81,232			78,995			79,801
Total Real Estate		2,051,115			2,044,406			2,037,025			1,839,181
Consumer		276,704			293,248			301,634			353,765
Total Loans		2,973,863			3,003,505			2,966,323			2,838,177
Less:  Allowance for Loan Losses		(48,197	)		(48,187	)		(48,994	)		(45,268	)
Net Loans		2,925,666			2,955,318			2,917,329			2,792,909
Other Real Estate Owned		158			—			230			703
Goodwill		55,257			55,911			58,249			29,341
Other Assets		138,306			152,835			148,808			132,422
Total Assets	$	4,920,544		$	4,965,783		$	4,595,572		$	4,153,714
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand	$	684,077		$	681,595		$	627,498		$	620,828
Savings		400,616			397,545			393,025			346,974
NOW and Money Market Accounts		2,118,539			2,162,630			1,922,452			1,870,835
Certificates of Deposit less than $100,000		691,467			691,873			682,636			634,992
Certificates of Deposit $100,000 and Over		231,393			237,948			198,607			196,217
Total Deposits		4,126,092			4,171,591			3,824,218			3,669,846
Borrowings		173,654			178,189			177,729			44,409
Company Obligated, Mandatorily Redeemable Securities Of Subsidiary Trust		125,000			125,000			125,000			—
Accrued Expenses and Other Liabilities		77,006			76,651			69,298			68,805
Total Liabilities		4,501,752			4,551,431			4,196,245			3,783,060
Total Stockholders’ Equity		418,792			414,352			399,327			370,654
Total Liabilities and Stockholders’ Equity	$	4,920,544		$	4,965,783		$	4,595,572		$	4,153,714
Book Value per Common Share	$	13.11		$	12.97		$	12.39		$	11.56
Common Shares Outstanding		31,939,470			31,940,640			32,235,058			32,070,446
Credit Quality Data
Nonperforming Assets (including OREO)	$	14,960		$	16,415		$	10,872		$	13,077
90 days past due and still accruing		2,953			3,213			2,477			4,583
Total	$	17,913		$	19,628		$	13,349		$	17,660
Nonperforming Assets to Loans Plus OREO		0.49	%		0.54	%		0.36	%		0.46	%
Allowance to Loans		1.57	%		1.57	%		1.64	%		1.59	%
Allowance to Nonperforming Loans (excluding OREO)		325.64	%		293.56	%		460.38	%		365.83	%
QTD Average Balance Sheet Data
Loans, Net	$	3,007,081		$	2,988,405		$	2,997,613		$	2,854,543
Earning Assets		4,588,801			4,443,815			4,163,108			3,855,444
Total Assets		4,869,802			4,727,637			4,436,263			4,091,763
Deposits		4,088,425			3,951,162			3,851,574			3,610,085
Stockholders’ Equity		413,449			405,783			385,039			370,032

CHITTENDEN CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In Thousands, except for ratios, shares and per share amounts)
	For the Three Months						For the Twelve Months
	Ended December 31,						Ended December 31,
	2002			2001			2002			2001
Interest Income:
Interest on Loans	$	47,404		$	51,091		$	194,121		$	223,661
Interest on Investments		18,404			12,561			64,898			42,836
Total Interest Income		65,808			63,652			259,019			266,497
Interest Expense:
Deposits		12,994			19,098			58,813			93,046
Borrowings		2,710			687			7,591			3,146
Total Interest Expense		15,704			19,785			66,404			96,192
Net Interest Income		50,104			43,867			192,615			170,305
Provision for Loan Losses		2,250			2,025			8,331			8,041
Net Interest Income after Provision for Loan Losses		47,854			41,842			184,284			162,264
Noninterest Income:
Investment Management Income		3,851			4,163			15,601			15,722
Service Charges on Deposit Accounts		4,107			3,670			16,026			14,294
Gains on Sales of Loans, Net		3,366			2,406			10,068			11,207
Merchant Services & Credit Card Income, Net		941			922			3,656			3,964
Insurance Commissions, Net		728			697			3,733			3,391
Other		6,568			3,785			15,976			15,155
Total Noninterest Income		19,561			15,643			65,060			63,733
Noninterest Expense:
Salaries and Employee Benefits		22,662			19,167			88,073			74,851
Net Occupancy Expense		4,980			4,441			19,526			17,744
Other Real Estate Owned, Net		(17	)		18			(293	)		86
Amortization of Intangibles		348			855			1,279			2,963
Other		11,882			10,246			42,959			40,117
Total Noninterest Expense		39,855			34,727			151,544			135,761
Income Before Income Taxes		27,560			22,758			97,800			90,236
Income Tax Expense		9,764			7,906			34,155			31,735
Net Income	$	17,796		$	14,852		$	63,645		$	58,501
Weighted Average Common Shares Outstanding		31,939,820			32,039,223			32,105,864			32,163,734
Weighted Average Common and Common Equivalent Shares Outstanding		32,259,266			32,420,335			32,495,402			32,547,029
Earnings Per Share, Basic	$	0.56		$	0.46		$	1.98		$	1.82
Earnings Per Share, Diluted		0.55			0.46			1.96			1.80
Dividends Per Share		0.20			0.19			0.79			0.76
Return on Average Equity		17.08	%		15.92	%		16.12	%		16.55	%
Return on Average Assets		1.45	%		1.44	%		1.40	%		1.51	%
Net Yield on Earning Assets		4.38	%		4.59	%		4.53	%		4.74	%

-end-