<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
for the transition period from to
------------ --------------
Commission File Number 0-11460
KEYSTONE FINANCIAL, INC.
Pennsylvania 23-2289209
(State of Incorporation) (IRS Employer I.D. No.)
ONE KEYSTONE PLAZA
FRONT & MARKET STREETS
P.O. BOX 3660
HARRISBURG, PA 17105-3660
(Address of principal executive offices)
(717) 231-1555
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the Registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X or No
------------ -------
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock ($2 par value): 23,509,609 as of April 30, 1995.
1
<PAGE>
KEYSTONE FINANCIAL, INC.
INDEX
<TABLE>
<CAPTION>
PART 1. FINANCIAL INFORMATION PAGE
<S> <C>
Item 1. Financial Statements
Consolidated Statements of Condition - March 31, 1995 and December 31, 1994
3
Consolidated Statements of Income - Three months ended March 31, 1995 and 1994.
4
Consolidated Statements of Cash Flows - Three months ended March 31, 1995 and
1994. 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations 7
PART II. OTHER INFORMATION
Items 1,2,3,4 and 5 have been omitted since they are not applicable to the
registrant.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits 11
(b) Reports on Form 8-K
The registrant did not file any reports on Form 8-K during the three months ended
March 31, 1995.
Signatures 12
</TABLE>
2
<PAGE>
CONSOLIDATED STATEMENTS OF CONDITION
<TABLE>
<CAPTION>
MARCH 31, 1995 DECEMBER 31, 1994
- - -------------------------------------------------------------------------------------------------------------------
(in thousands) (UNAUDITED) (NOTE)
<S> <C> <C>
ASSETS
- - --------------------------------------------------------------------------------------------------------------------
Cash and due from banks $ 157,603 $ 181,953
Federal funds sold and other 75,811 49,622
Investment securities available for sale 688,476 755,795
Investment securities held to maturity
(market values 1995-$403,057; 1994-$402,963) 407,835 418,402
Mortgages held for resale 9,674 9,189
Loans and Leases 3,237,611 3,193,405
Allowance for credit losses (43,109) (42,440)
- - -------------------------------------------------------------------------------------------------------------------
Net Loans 3,194,502 3,150,965
Premises and equipment 62,743 61,759
Other assets 83,298 78,315
- - -------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $4,679,942 $4,706,000
===================================================================================================================
LIABILITIES
- - -------------------------------------------------------------------------------------------------------------------
Noninterest-bearing deposits $ 455,503 $ 513,641
Interest-bearing deposits 3,369,624 3,314,342
- - -------------------------------------------------------------------------------------------------------------------
Total Deposits 3,825,127 3,827,983
Fed Funds purchased and Security
repurchase agreements 170,568 239,652
Other short-term borrowings 7,781 14,376
- - -------------------------------------------------------------------------------------------------------------------
Total Short-Term Borrowings 178,349 254,028
FHLB borrowings 184,731 148,887
Long-term debt 5,528 6,054
Other Liabilities 61,575 61,274
- - -------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 4,255,310 4,298,226
SHAREHOLDERS' EQUITY
- - -------------------------------------------------------------------------------------------------------------------
Preferred stock; $1.00 par value,
authorized 8,000,000 shares;
none issued or outstanding
Common stock: $2.00 par value,
authorized 50,000,000; issued
24,199,078 - 1995 and 24,051,077 - 1994 48,398 48,102
Surplus 109,087 106,812
Retained Earnings 298,634 291,948
Deferred KSOP benefit expense (2,125) (2,250)
Treasury stock; shares 690,000 - 1995
and 1994, at cost (20,576) (20,576)
Net unrealized securities losses, net of tax (8,786) (16,262)
- - -------------------------------------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 424,632 407,774
- - -------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $4,679,942 $4,706,000
===================================================================================================================
</TABLE>
Note: The balance sheet at December 31, 1994 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.
The accompanying notes are an integral part of the consolidated financial
statements.
3
<PAGE>
CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data)
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------
Three Months Ended
(unaudited) March 31,
1995 1994
- - -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
INTEREST INCOME
- - -----------------------------------------------------------------------------------------------------------
Loans and fees on loans $ 70,294 $ 55,193
Investments - taxable 14,968 14,313
Investments - tax exempt 2,158 2,705
Federal funds sold and other 1,143 862
Mortgages held for resale 195 442
- - -----------------------------------------------------------------------------------------------------------
88,758 73,515
- - -----------------------------------------------------------------------------------------------------------
INTEREST EXPENSE
- - -----------------------------------------------------------------------------------------------------------
Deposits 33,885 25,398
Short-term borrowings 2,615 1,359
FHLB borrowing 2,417 1,486
Long-term debt 115 98
- - -----------------------------------------------------------------------------------------------------------
39,032 28,341
- - -----------------------------------------------------------------------------------------------------------
NET INTEREST INCOME 49,726 45,174
Provision for credit losses 2,084 1,642
- - -----------------------------------------------------------------------------------------------------------
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES 47,642 43,532
- - -----------------------------------------------------------------------------------------------------------
NONINTEREST INCOME
- - -----------------------------------------------------------------------------------------------------------
Trust income 3,199 3,286
Service charges on deposit accounts 3,166 3,075
Mortgage banking 1,326 1,038
Fee income 2,847 2,303
Reinsurance income 523 549
Other income 393 417
Net gains - equity securities 27 281
Net gains - debt securities 5 330
- - -----------------------------------------------------------------------------------------------------------
NONINTEREST EXPENSE 11,486 11,279
- - -----------------------------------------------------------------------------------------------------------
Salaries 14,952 14,301
Employee benefits 3,411 3,294
Occupancy expense (net) 3,249 3,143
Furniture and equipment expense 3,024 2,614
Deposit insurance 2,146 2,027
Other expense 11,151 10,037
- - -----------------------------------------------------------------------------------------------------------
37,933 35,416
- - -----------------------------------------------------------------------------------------------------------
Income before income taxes 21,195 19,395
Income tax expense 6,539 5,349
- - -----------------------------------------------------------------------------------------------------------
NET INCOME $ 14,656 $ 14,046
- - -----------------------------------------------------------------------------------------------------------
PER SHARE DATA
- - -----------------------------------------------------------------------------------------------------------
Net income $0.63 $0.60
Average number of shares outstanding 23,431,267 23,423,767
- - -----------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
4
<PAGE>
Consolidated Statements of Cash Flows (unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1995 1994
(in thousands)
- - --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net Income $ 14,656 $ 14,046
Adjustments to reconcile net income to
net cash provided by operating activities:
Provision for credit losses 2,084 1,642
Provision for depreciation & amortization 2,619 2,807
Deferred income taxes 6,539 3,602
Sale of mortgages held for resale 25,683 46,374
Origination of mortgages held for resale (26,717) (38,753)
Decrease in interest receivable 1,731 284
Increase in interest payable 2,236 2,811
Other (12,952) 6,635
- - --------------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 15,879 39,448
- - --------------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES:
Net decrease in interest-bearing deposits 4,492 15,993
Sales of available-for-sale securities 6,895 34,956
Maturities of available-for-sale securities 206,972 167,953
Purchases of available-for-sale securities (136,003) (130,336)
Maturities of held-to-maturity securities 14,510 14,914
Purchases of held-to-maturity securities (4,239) (28,241)
Net increase in loans (41,868) (31,326)
Sales of loans 6,435 1,959
Purchase of loans (15,030) (16,052)
Purchases of premises and equipment (3,286) (1,793)
Other 64 5,482
- - --------------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY INVESTING ACTIVITIES 38,942 33,509
- - -------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES:
Net decrease in deposits (2,856) (9,360)
Net decrease in short-term borrowings (75,679) (53,949)
Proceeds from FHLB Borrowings 60,100 ---
Repayments of FHLB Borrowings (24,255) (7,000)
Net increase(decrease) in long-term debt (526) 961
Acquisition of treasury stock --- (2,875)
Cash dividends (7,970) (8,314)
Other 2,696 1,770
- - --------------------------------------------------------------------------------------------------------------------------
NET CASH USED BY FINANCING ACTIVITIES (48,490) (78,767)
- - --------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE)IN CASH AND CASH EQUIVALENTS 6,331 (5,810)
Cash and cash equivalents at beginning of period 204,942 241,618
- - --------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 211,273 $ 235,808
- - --------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
5
<PAGE>
Notes To Consolidated
Financial Statements
BASIS OF PRESENTATION
- - ---------------------
The accompanying unaudited consolidated financial statements for the interim
periods do not include all of the information and footnotes required by
generally accepted accounting principles. However, in the opinion of
management, all adjustments necessary for a fair presentation have been
included, and such adjustments were of a normal recurring nature.
Operating results for the three-month period ended March 31, 1995 are not
necessarily indicative of the results that may be expected for 1995.
For further information, refer to the audited consolidated financial statements,
footnotes thereto, and the Financial Review for the year ended December 31,
1994, as contained in the Annual Report to Shareholders.
IMPAIRED LOANS
- - --------------
Effective January 1, 1995, Keystone adopted Financial Accounting Standards Board
(FASB) Statement No. 114, "Accounting by Creditors for Impairment of a Loan", as
amended by Statement No. 118, "Accounting by Creditors for Impairment of a Loan
- - --Income Recognition and Disclosures." Under this new standard, the credit loss
for loans to which it applies is based on discounted cash flows using the loans
----------
interest rate or the fair value of the collateral for collateral dependent
loans. Prior to the adoption of the new standard, cash flows were not
discounted in estimating credit loss. Adoption of the new standard did not have
a material impact on Keystone's financial condition or results of operation.
6
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
SUMMARY
Keystone Financial, Inc. (Keystone) reported net income of $14,656,000 and
earnings per share of $0.63 for the first quarter of 1995, compared to
$14,046,000, or $0.60 per share for the same period in 1994. Return on average
assets (ROA) and return on average equity (ROE) for the first quarter of 1995
were 1.26% and 14.33%, respectively, compared to 1.31% and 13.81% for the first
quarter of 1994.
Net interest income, the largest source of revenue for Keystone, grew 9% and was
affected by both loan growth and sustained strength in net interest margin.
Loans grew 16% from the first quarter of 1994, and net interest margin reached
4.63%.
The acquisition of American Savings Bank, which was completed in November 1994,
influenced the growth in both loans and deposits in the first quarter.
Excluding the impact of this transaction, adjusted loan and deposit growth
remained strong at 13% and 4%, respectively. Additionally, the increase in
noninterest expenses in the first quarter of 1995 was affected by the
incremental costs added through the acquisition.
Asset quality measurements continued to reflect the soundness of Keystone's
credit practices and underwriting standards. Total risk elements, which consist
of nonperforming loans and loans 90 days or more past due, dropped to 1.07% of
total loans from the ratio of 1.60% at the end of the first quarter of 1994.
Keystone's coverage of the allowance to nonperforming loans grew to 227%, a
substantial improvement from the ratio of 140% one year ago.
AVERAGE STATEMENT OF CONDITION
The quarterly average balance sheets for the three-months ended March 31, 1995
and 1994 were as follows:
<TABLE>
<CAPTION>
Three Months Ended
March 31, Change
<S> <C> <C> <C> <C>
1995 1994 Volume %
- - --------------------------------------------------------------------------
Cash and due from banks $ 148,617 $ 146,915 $ 1,702 1%
Federal funds sold and other 78,309 103,534 (25,225) (24)%
Investments 1,137,362 1,213,984 (76,622) (6)%
Mortgages held for sale 10,726 21,158 (10,432) (49)%
Loans 3,228,141 2,788,508 439,633 16%
Allowance for credit losses (43,730) (40,995) (2,735) 7%
- - --------------------------------------------------------------------------
Net loans 3,184,411 2,747,513 436,898 16%
Other assets 146,689 123,208 23,481 19%
- - --------------------------------------------------------------------------
TOTAL ASSETS $4,706,114 $4,356,312 $349,802 8%
- - --------------------------------------------------------------------------
Noninterest-bearing deposits $ 459,873 $ 451,620 $ 8,253 2%
Interest-bearing deposits 3,353,166 3,112,695 240,471 8%
Short-term borrowings 213,876 196,752 17,124 9%
FHLB borrowings 172,966 128,038 44,928 35%
Other liabilities 91,378 54,676 36,702 67%
- - --------------------------------------------------------------------------
TOTAL LIABILITIES 4,291,259 3,943,781 347,478 9%
- - --------------------------------------------------------------------------
SHAREHOLDERS' EQUITY 414,855 412,531 2,324 1%
- - --------------------------------------------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $4,706,114 $4,356,312 $349,802 8%
- - --------------------------------------------------------------------------
</TABLE>
The growth in loans occurred throughout the commercial and consumer categories
and was funded by a decline in investments and federal funds sold, as well as
the increase in deposits. The loan growth can primarily be attributed to a
slightly improved economy and the stabilization of interest rates from the end
of 1994.
7
<PAGE>
NET INTEREST INCOME
The following table summarizes, on a fully taxable equivalent basis, changes in
net interest income and net interest margin for the three months ended March 31,
1995 and 1994 (in thousands):
<TABLE>
<CAPTION>
1995 1994 INCREASE/DECREASE
AMOUNT YIELD/ YIELD/ YIELD/
RATE AMOUNT RATE AMOUNT RATE
- - ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INTEREST INCOME $90,227 8.19% $75,254 7.38% $14,973 0.81
INTEREST EXPENSE 39,032 4.23 28,341 3.34 10,691 0.89
- - ----------------------------------------------------------------------------------------
NET INTEREST INCOME $51,195 $46,913 $ 4,282
INTEREST SPREAD 3.96% 4.04% (0.08)
IMPACT OF NONINTEREST FUNDS 0.67 0.56 0.11
- - ----------------------------------------------------------------------------------------
NET INTEREST MARGIN 4.63% 4.60% 0.03
- - ----------------------------------------------------------------------------------------
</TABLE>
*The change in net interest income included favorable variances in both volume
and rates of $2,856 and $1,426, respectively.
Keystone's primary source of revenue is net interest income, which represents
the difference between interest income on earning assets and interest expense on
deposits and other borrowed funds. Interest rates, which had risen
significantly throughout 1994, began stabilizing in the first quarter of 1995.
The higher interest rates improved earning asset yields but, at the same time,
heightened competitive pressures on core funding sources.
The rise in interest rates, coupled with more recent increases in loan volumes,
favorably influenced earning asset yields which totalled 8.19% for the first
quarter of 1995 versus 7.38% in the same period of 1994. As a result, interest
income increased from $75,254,000 for the first three months of 1994 to
$90,227,000 for the same period in 1995.
On the funding side, the overall cost of funds of 4.23% for the first quarter of
1995 reflected a substantial increase over the 3.34% for the same period of
1994. As a result of the higher rates paid for deposits and the resultant
growth in deposits, interest expense of $39,032,000 exceeded the expense of
$28,341,000 for the first three months of 1994.
As a consequence of interest rate trends and growth levels achieved during the
first three months of 1995, net interest income increased 9% from $46,913,000 in
1994 to $51,195,000 in 1995. Although net interest spread, or the difference
between earning asset yields and the cost of funds dropped from 4.04% in 1994 to
3.96% in 1995, an increased contribution from noninterest funds in 1995 resulted
in a net interest margin of 4.63%, and compared favorably to the 4.60% recorded
in 1994.
NONINTEREST INCOME
Noninterest income for the first quarter of 1995 was $11,486,000 compared to
$11,279,000 in 1994. Excluding the impact of securities gains, first quarter
1995 amounts reflected improvement of 7% over the comparable quarter in 1994.
The increases occurred primarily in fee income from bank cards and merchant
discounts and in mortgage banking activities.
NONINTEREST EXPENSES
Noninterest expenses grew from $35,416,000 for the first quarter of 1994 to
$37,933,000 in 1995, an increase of $2,517,000, or 7%. Approximately 25% of the
increase was attributable to the acquisition of American Savings Bank and
resulting incremental costs.
Salary and benefit expenses rose slightly from $17,595,000 in the first quarter
of 1994 to $18,363,000 for the same period of 1995. The increase of $768,000 or
4% was primarily due to normal merit increases. Keystone has continued its
restructuring
8
<PAGE>
activities which commenced in late 1994 and expects to more fully
realize the savings associated with those efforts throughout the remainder of
1995.
Furniture and equipment expense grew 16% from $2,614,000 in 1994 to $3,025,000
in 1995 due to increased depreciation associated with the fixed assets purchased
in the American Savings Bank acquisition and due to continued technological
investment in equipment.
Other expenses increased from $10,037,000 for the first quarter of 1994 to
$11,151,000 during the same period in 1995, an increase of $1,114,000 or 11%.
Increases occurred in bank card expense and corresponded with the aforementioned
increase in bank card revenues. Increases were also noted in marketing
expenses, due to increased television promotions, and in amortization from core
deposit intangibles associated with the American Savings Bank acquisition.
ASSET QUALITY
Keystone's allowance for credit losses at March 31, 1995 was $43,109,000
compared to $42,440,000 at the end of 1994, as the allowance to loan ratio
remained constant at 1.33%. The management of asset quality continues to be a
priority within Keystone and is reflected in the reduced levels of total risk
elements at March 31, 1995, which were $34,823,000 or 1.07% of total loans
versus 1.19% at the end of 1994. Similarly, the annualized ratio of net loans
charged off to average loans of .18% for the first quarter of 1995 was an
improvement from Keystone's low historical trends.
The following table has been provided to compare nonperforming assets and
total risk elements at March 31, 1995 to the balances at the end of 1994,
in both absolute dollars and as a percentage of loans. This presentation is
supplemented by a comparison of various coverage ratios.
<TABLE>
<CAPTION>
March 31, 1995 December 31, 1994
(dollars in thousands)
<S> <C> <C>
Nonaccrual loans $18,885 $24,403
Troubled debt restructurings 123 144
- - -----------------------------------------------------------------------------------------------------------------------------
Nonperforming loans 19,008 24,547
Other real estate 6,646 5,870
- - -----------------------------------------------------------------------------------------------------------------------------
Nonperforming assets 25,654 30,417
Loans past due 90 days or more 9,169 7,744
- - -----------------------------------------------------------------------------------------------------------------------------
Total risk elements $34,823 $38,161
- - -----------------------------------------------------------------------------------------------------------------------------
Ratio to period-end loans:*
Nonperforming assets .79% .95%
90-days past due .28% .24
- - -----------------------------------------------------------------------------------------------------------------------------
Total risk elements 1.07% 1.19%
- - -----------------------------------------------------------------------------------------------------------------------------
Coverage Ratios:
Ending allowance to nonper-
forming loans 227% 173%
Ending allowance to risk elements** 153% 131%
Ending allowance to net charge-offs
(annualized) 7.5X 4.6X
- - -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* The denominator consists of period-end loans and ORE.
** Excludes ORE.
Effective January 1, 1995, Keystone adopted Financial Accounting Standards Board
(FASB) Statement No. 114, "Accounting by Creditors for Impairment of a Loan", as
amended by Statement No. 118, "Accounting by Creditors for Impairment of a Loan
- - -- Income Recognition and Disclosures." Under this new standard, the credit
loss for
9
<PAGE>
loans to which it applies is based on discounted cash flows using the loans
interest rate or the fair value of the collateral for collateral dependent
loans. Prior to the adoption of the new standard, cash flows were not
discounted in estimating credit loss. Adoption of the new standard did not have
a material impact on Keystone's financial condition or results of operation.
Based upon the evaluation of loan quality, management believes that the
allowance for credit losses is adequate to absorb credit risk in the portfolio.
Shareholders' Equity
Shareholders' equity at March 31, 1995 was $424,632,000 and reflected an
increase of $16,858,000 from the capital base of $407,774,000 recorded at the
end of 1994. This increase is attributable to first quarter profitability as
well as increases in the market value of securities "available for sale". The
amortized cost of "available for sale" securities exceeded the market value by
$8,786,000 versus $16,262,000 at the end of 1994.
Keystone's regulatory capital measures, which include the leverage ratio, "Tier
1" capital, and "Total" capital ratios, continued to be well in excess of both
regulatory minimums and the thresholds established for "well capitalized"
institutions. The following comparative presentation of these ratios and
associated regulatory standards is provided:
<TABLE>
<CAPTION>
Regulatory Standards
March 31, December 31, "Well- Minimum
1995 1994 Capitalized" Requirements
<S> <C> <C> <C> <C>
Leverage ratio 9.14% 8.84% 5.00% 4.00%
"Tier 1" ratio 13.39% 12.96% 6.00% 4.00%
"Total" capital 14.64% 14.21% 10.00% 8.00%
ratio
</TABLE>
Asset/Liability Management
The process by which financial institutions manage their assets and liabilities
under different interest rate environments is called asset/liability management.
The two principal goals of asset/liability management are optimizing net
interest margin and maintaining adequate liquidity.
The management of net interest margin entails appropriate monitoring and
measurement of interest rate risk. Interest rate risk is evidenced by the
change in net interest margin relative to changes in market interest rates.
Keystone and its subsidiary banks utilize a variety of techniques to measure and
manage interest rate risk, including periodic rate "shock" simulations, which
measure the impact of dynamic changes in interest rates on net interest income.
In addition to simulation techniques, Keystone also monitors its GAP position.
GAP is defined as the volume difference between interest rate sensitive assets
and liabilities. At March 31, 1995, the one-year GAP was 1.10% and reflected
earning assets eligible for interest rate adjustment in excess of adjustable
rate liabilities. Based on tests conducted in connection with the simulation
techniques and the measurement of GAP, management has determined that all
Keystone banks have acceptable levels of interest rate risk at March 31, 1995.
Liquidity management, which is the second goal of asset/liability management, is
defined as Keystone's ability to meet maturing obligations and customer demands
for funds. Liquidity is created by stable core deposits, a diversified mix of
liabilities, strong credit perception, and the maintenance of significant assets
convertible to cash without undue disruption to normal operations. Keystone
actively manages liquidity and has developed reasonable contingency plans to
ensure that liquidity remains adequate under a variety of business conditions.
10
<PAGE>
Exhibit Index
- - -------------
<TABLE>
<CAPTION>
Exhibit # Description Page #
- - --------- ----------- ------
<S> <C> <C>
27 Financial Data Schedule 13
</TABLE>
11
<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.
<TABLE>
<S> <C>
Date: March 12, 1995 Carl L. Campbell
-------------- --------------------------------------------------
Carl L. Campbell, President and Chief
Executive Officer
Date: March 12, 1995 Mark L. Pulaski
-------------- --------------------------------------------------
Mark L. Pulaski, Senior Executive Vice
President, Chief Administrative Officer, and
Chief Financial Officer
Date: March 12, 1995 Donald F. Holt
-------------- --------------------------------------------------
Donald F. Holt, Senior Vice President,
Controller and Principal Accounting Officer
</TABLE>
12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FIRST
QUARTER 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 10-Q.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 157603
<INT-BEARING-DEPOSITS> 22141
<FED-FUNDS-SOLD> 53670
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 688476
<INVESTMENTS-CARRYING> 407835
<INVESTMENTS-MARKET> 403057
<LOANS> 3237611
<ALLOWANCE> 43109
<TOTAL-ASSETS> 4679942
<DEPOSITS> 3825127
<SHORT-TERM> 178349
<LIABILITIES-OTHER> 61575
<LONG-TERM> 190259
<COMMON> 48398
0
0
<OTHER-SE> 376234
<TOTAL-LIABILITIES-AND-EQUITY> 4679942
<INTEREST-LOAN> 70294
<INTEREST-INVEST> 17126
<INTEREST-OTHER> 1338
<INTEREST-TOTAL> 88758
<INTEREST-DEPOSIT> 33885
<INTEREST-EXPENSE> 39032
<INTEREST-INCOME-NET> 49726
<LOAN-LOSSES> 2084
<SECURITIES-GAINS> 32
<EXPENSE-OTHER> 37933
<INCOME-PRETAX> 21195
<INCOME-PRE-EXTRAORDINARY> 21195
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 14656
<EPS-PRIMARY> .63
<EPS-DILUTED> .63
<YIELD-ACTUAL> 3.96
<LOANS-NON> 18885
<LOANS-PAST> 9169
<LOANS-TROUBLED> 123
<LOANS-PROBLEM> 5750
<ALLOWANCE-OPEN> 42440
<CHARGE-OFFS> 1916
<RECOVERIES> 501
<ALLOWANCE-CLOSE> 43109
<ALLOWANCE-DOMESTIC> 43109
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
