SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) September 30, 1996
KEYSTONE FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
Pennsylvania 0-11460 23-2289209
State or other jurisdiction (Commission File Number) (IRS Employer ID No.)
of incorporation)
One Keystone Plaza, P.O.Box 3660,Harrisburg, Pennsylvania 17105-3660
(Address of principal executive offices) (ZIP CODE)
Registrant's telephone number including area code: (717) 233-1555
Item 5 Other Events
The following documents are filed as exhibits to this Form 8-K:
I. Earnings Release of Keystone Financial, Inc. for the quarter
ended September 30, 1996.
II. Fiscal Insight
<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 hereunto duly authorized.
Keystone Financial, Inc.
(Registrant)
Date: October 21, 1996 Donald F. Holt
Donald F. Holt
Senior Vice President, Controller
and Chief Accounting Officer
<TABLE>
<CAPTION>
EXHIBIT INDEX
Exhibit No. Description
- ----------- ------------
<C> <S>
99.1 Earnings Release of Keystone Financial, Inc. for the quarter
ended September 30, 1996, filed herewith.
99.2 Fiscal Insight
<PAGE>
</TABLE>
<PAGE>
October 18, 1996 Mark L. Pulaski
(717)231-5702
KEYSTONE FINANCIAL REPORTS THIRD QUARTER/NINE MONTH GAINS
HARRISBURG, PA, October 18 -- Keystone Financial, Inc. (NASDAQ,NMS:KSTN),
Pennsylvania's fifth largest bank holding company, today reported earnings
for the third quarter and nine months ended September 30, 1996.
Third quarter net income reached $17,025,000, or .45 cents per share
compared with $15,433,000, or.43 cents per share for the same period last year.
Net income for the nine month period rose to $51,615,000, or $1.36 per
share from $45,110,000, or $1.28 per share for the comparable period in 1995, a
gain in earnings per share of six percent. For the nine month period ended
September 30, 1996, return on average assets was 1.37 percent and return on
average equity was 14.08 percent.
Assets at the close of this year's third quarter rose 8 percent to
$5,186,129,000, from $4,807,854,000, at the same date last year. Deposits
grew to $4,111,103,000, from $3,848,290,000, at September 30, 1995, and loans
increased to $3,481,937,000, from $3,243,618,000, at the end of the third
quarter of 1995.
"We are pleased with our year to date performance, including the reported
gain in quarterly earnings. While net interest income growth was less than we
expected, as a result of intense pricing competition and higher short term
deposit costs, fee income continued to expand, "Carl L. Campbell, president and
chief executive officer, said. "In addition to lending and deposit generation,
we are committed to increasing revenues from a variety of other financial
activities such as asset management and investment products. We remain
optimistic about our ability to grow customer relationships and build
profitability," he concluded.
Keystone Financial has five member banks -- Pennsylvania National Bank,
Pottsville; Northern Central Bank, Williamsport; Mid-State Bank, Altoona;
Frankford Bank, Horsham; and American Trust Bank N.A.,Cumberland, MD; which
together operate 147 offices in Pennsylvania, Maryland and West Virginia.
Keystone also operates several non-banking companies providing specialized
services including Keystone Financial Mortgage Company, Lancaster, PA;
Martindale Andres & Co., (asset management firm), West Conshohocken, PA ; and
Keystone Financial Dealer Center, Williamsport, PA.
####
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
<S> <C>
- - Keystone's net income for the third quarter and nine months ended
September 30, 1996 exceeded 1995 results, but reflected a slight
decline from the second quarter of this year. Return on average
assets and return on average equity reached 1.32% and 13.63%,
respectively, for the quarter.
- - Third quarter net income and earnings per share for 1996 reached
$17,025,000 and $0.45, respectively, compared to $15,433,000 and
$0.43 in the same period of 1995. Increases in net interest income,
noninterest income and expenses from 1995 to 1996 were affected by
banks merged in late 1995.
- - Despite improvements from the prior year, third quarter results
dropped slightly from the second quarter of 1996. Performance was
influenced by the impact of rising interest rates on deposit costs
between the second and third quarters of 1996. As a result, net
interest income fell slightly and net interest margin declined to
4.37%.
- - Noninterest revenues and expenses increased as a result of both the
impact of late 1995 mergers and the influence of the third quarter
acquisition of Key Investor Services, which offers a full range of
investments including fixed annuities, variable annuities, and
mutual funds. Noninterest revenues continued to reflect strong
growth, including a 17% quarter to quarter increase from 1995 to 1996.
- - Total risk elements, which include both nonperforming assets and loans
90 days past due, remained constant with second quarter levels.
</TABLE>
<TABLE>
<CAPTION>
1996 1995
--------------------------------- --------------------------------
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter Annual
<S> <C> <C> <C> <C> <C> <C>
- - Earnings per share* $0.45 $0.47 $0.44 $0.45 $0.43 $1.73
- - Return on average assets 1.32% 1.43% 1.36% 1.32% 1.28% 1.29%
- - Return on average equity 13.63% 14.60% 14.02% 13.99% 13.91% 14.06%
- - Net interest margin 4.37% 4.56% 4.57% 4.45% 4.37% 4.49%
- - Noninterest income/revenues 22.45% 21.60% 22.29% 19.37% 20.83% 19.45%
- - Provision for credit losses/Average loans 0.27% 0.24% 0.24% 0.16% 0.26% 0.24%
- - Noninterest expense/revenues 59.56% 57.73% 59.95% 58.92% 58.46% 59.78%
- - Nonperforming assets to loans 0.71% 0.75% 0.74% 0.78% 0.77% -
- - 90 day past due loans to loans 0.58% 0.57% 0.45% 0.44% 0.42% -
- - Total risk elements to loans 1.29% 1.32% 1.19% 1.22% 1.19% -
- - Allowance for credit losses to loans 1.28% 1.30% 1.32% 1.32% 1.34% -
- - Allowance for credit losses to
nonperforming loans 254% 247% 261% 257% 274% -
- - Net charge-offs/Average loans 0.24% 0.24% 0.25% 0.24% 0.20% 0.21%
- - Equity to assets 9.69% 9.79% 9.74% 9.47% 9.30% -
- - Total risk adjusted capital ratio 14.80% 15.02% 14.92% 14.83% 14.70% -
* Restated for the three-for-two stock split declared July, 1996.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PER SHARE STATISTICS (1)
- - Earnings per Share
Fourth Third Second First
Quarter Quarter Quarter Quarter Total
<S> <C> <C> <C> <C> <C>
1996 $0.45 $0.47 $0.44 $1.36
1995 $0.45 $0.43 $0.43 $0.42 $1.73
1994 $0.40 $0.26 $0.40 $0.40 $1.46
- - Average Shares Outstanding
Fourth Third Second First Average
Quarter Quarter Quarter Quarter For Year
1996 38,164,065 38,022,920 37,950,453 38,046,244
1995 36,142,553 35,352,675 35,197,571 35,146,901 35,462,358
1994 35,095,010 34,930,629 35,062,089 35,135,651 35,093,138
- - Book Value per Share
Fourth Third Second First
Quarter Quarter Quarter Quarter
1996 $13.17 $12.92 $12.75
1995 $12.69 $12.64 $12.40 $12.04
1994 $11.64 $11.63 $11.66 $11.72
</TABLE>
<TABLE>
<CAPTION>
QUARTER-END INFORMATION
(dollars in thousands) 1996 1995
----------------------------------- ---------------------
Third Second First Fourth Third
Quarter Quarter Quarter Quarter (2) Quarter
<S> <C> <C> <C> <C> <C>
Loans $3,481,937 $3,397,203 $3,355,552 $3,365,716 $3,243,618
Earning assets 4,885,173 4,720,625 4,672,069 4,755,763 4,525,818
Total assets 5,186,129 5,020,979 4,966,610 5,074,785 4,807,854
Deposits 4,111,103 4,058,766 3,990,379 4,061,888 3,848,290
Total shareholders' equity 502,579 491,317 483,890 480,694 447,214
Unrealized securities gains(losses), net (4,523) (5,609) (3,438) 1,198 (2,352)
Number of shares outstanding(1) 38,164,896 38,034,993 37,989,806 37,884,554 35,376,956
(1) Restated for the three-for-two stock split declared July, 1996.
(2) During the fourth quarter of 1995, Keystone consummated pre-announced
mergers with Shawnee Financial Services Corporation and National American
Bancorp, Inc. Although these transactions were accounted for under the pooling of interests
method of accounting, prior period results were not restated due to the
immaterial impact the mergers had on Keystone's consolidated financial
condition and results of operations. In total, the two mergers increased year-end loans, total assets, and equity
by approximately $116 million, $225 million, and $22 million, respectively.
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED QUARTERLY AVERAGE
STATEMENTS OF CONDITION
(in thousands) 1996 1995
--------------------------------- --------------------
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
ASSETS
Earning Assets:
<S> <C> <C> <C> <C> <C>
Loans and leases $3,424,853 $3,367,113 $3,392,181 $3,304,982 $3,264,259
Assets held for resale 68,866 81,505 21,052 21,459 40,191
Federal funds sold and other 121,468 102,138 114,703 162,889 198,657
Taxable investment securities 1,085,837 1,032,165 1,069,390 993,056 889,968
Nontaxable investment securities 132,176 124,377 124,200 126,801 129,000
Total earning assets 4,833,200 4,707,298 4,721,526 4,609,187 4,522,075
Cash and due from banks 156,475 147,538 143,239 145,080 153,508
Allowance for credit losses (44,825) (45,071) (45,101) (44,043) (44,345)
Intangible assets 14,466 14,921 15,368 14,112 10,960
Other assets 154,195 152,268 148,571 142,500 137,620
TOTAL ASSETS $5,113,511 $4,976,954 $4,983,603 $4,866,836 $4,779,818
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Deposits less than $100,000:
- Now accounts $424,965 $433,775 $429,358 $425,851 $429,176
- Money market accounts 398,277 400,426 415,689 415,954 406,037
- Savings 389,680 401,689 406,246 392,686 409,969
- Time deposits 2,118,504 2,049,346 2,016,052 1,947,640 1,912,743
Deposits greater than $100,000 261,661 237,623 234,974 245,810 217,516
Short-term borrowings 275,735 241,506 261,202 232,644 212,559
FHLB Borrowings 138,279 136,162 167,145 166,130 188,369
Long-term debt, other 2,821 3,385 3,893 4,338 4,767
Total interest-bearing liabilities 4,009,922 3,903,912 3,934,559 3,831,053 3,781,136
Noninterest-bearing deposits 508,098 494,991 486,975 490,802 478,125
Other liabilities 99,921 90,946 79,837 85,440 80,371
TOTAL LIABILITIES 4,617,941 4,489,849 4,501,371 4,407,295 4,339,632
Shareholders' equity 495,570 487,105 482,232 459,541 440,186
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $5,113,511 $4,976,954 $4,983,603 $4,866,836 $4,779,818
</TABLE>
<TABLE>
<CAPTION>
GROWTH IN AVERAGE BALANCES (1)
1996 1995
--------------------------------- ----------------------
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
<S> <C> <C> <C> <C> <C>
Loans 4.9% 3.0% 5.1% 6.0% 11.1%
Total assets 7.0% 5.9% 5.9% 5.2% 7.6%
Deposits 6.4% 4.9% 4.6% 3.7% 5.3%
Shareholders' equity 12.6% 13.3% 16.2% 12.6% 7.8%
(1) Compares current quarter to the comparable quarter of the prior year.
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands) 1996 1995
---------------------------------- -----------------------------------
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter Annual
<S> <C> <C> <C> <C> <C> <C>
Interest income $96,599 $94,596 $95,415 $93,646 $91,426 $363,931
Tax equivalent adjustment 1,196 1,234 1,199 1,312 1,348 5,618
Total interest income 97,795 95,830 96,614 94,958 92,774 369,549
Interest expense 44,700 42,161 42,824 43,239 42,930 166,579
Net interest income 53,095 53,669 53,790 51,719 49,844 202,970
Provision for credit losses 2,312 2,036 1,988 1,357 2,160 7,859
Net interest income after provision 50,783 51,633 51,802 50,362 47,684 195,111
Noninterest income 15,373 14,782 15,426 12,427 13,112 49,004
Security transactions --- 101 452 925 6 1,317
Noninterest expense 40,781 39,519 41,497 38,338 36,806 150,634
Income before income taxes 25,375 26,997 26,183 25,376 23,996 94,798
Income taxes 7,154 8,030 8,127 7,860 7,215 27,866
Tax equivalent adjustment 1,196 1,234 1,199 1,312 1,348 5,618
NET INCOME $17,025 $17,733 $16,857 $16,204 $15,433 $61,314
Tax effect of security transactions $ --- $ 35 $ 158 $ 324 $ 2 $ 461
</TABLE>
<TABLE>
<CAPTION>
ANALYSIS OF NONINTEREST INCOME
(dollars in thousands) 1996 1995
--------------------------------- -------------------------------
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter Annual
<S> <C> <C> <C> <C> <C> <C>
Trust and investment advisory fees $ 3,751 $ 3,726 $ 3,681 $ 3,371 $ 2,831 $12,557
Service charges - deposits 3,667 3,689 3,462 3,486 3,269 13,205
Mortgage banking income 1,853 1,986 1,698 1,283 1,802 6,111
Fee income 3,514 3,492 3,309 3,076 3,329 12,135
Reinsurance income 551 538 586 505 460 2,047
Other 2,037 1,351 2,690 706 1,421 2,949
Total noninterest income $15,373 $14,782 15,426 12,427 13,112 49,004
Noninterest income to average assets* 1.19% 1.19% 1.24% 1.01% 1.09% 1.03%
*Annualized
</TABLE>
<TABLE>
<CAPTION>
ANALYSIS OF NONINTEREST EXPENSE
(dollars in thousands) 1996 1995
--------------------------------- -----------------------------------
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter Annual
<S> <C> <C> <C> <C> <C> <C>
Salaries expense $ 17,852 $ 16,819 $ 16,971 $16,864 $ 15,260 $ 62,115
Employee benefits 3,065 3,064 3,830 2,520 2,618 10,898
Occupancy expense 3,324 3,329 3,488 3,073 3,209 12,650
Furniture and equipment expense 3,536 3,405 3,355 3,365 3,065 12,435
Deposit insurance 198 171 215 520 142 4,957
Other expense 12,806 12,731 13,638 11,996 12,512 47,579
Total noninterest expense $ 40,781 $ 39,519 $ 41,497 $38,338 36,806 $150,634
Noninterest expense to average assets* 3.16% 3.18% 3.34% 3.13% 3.06% 3.16%
Noninterest expense to revenues 59.56% 57.73% 59.95% 58.92% 58.46% 59.47%
Avg. full-time equivalent employees 2,456 2,449 2,432 2,334 2,308 2,315
*Annualized
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
NET INTEREST INCOME ANALYSIS
Third Quarter
1996 1995
-------------------- -------------------
(dollars in thousands) Amount Rate Amount Rate Change
Interest income:*
<S> <C> <C> <C> <C> <C> <C> <C>
Loans - Commercial $ 13,837 8.78 % $ 12,455 9.15 % $ 1,382
Commercial - Real Estate 20,882 9.26 20,654 9.23 228
Consumer - Mortgage 15,089 7.91 15,917 8.14 (828)
Consumer 25,303 8.80 23,513 8.79 1,790
Assets held for resale 1,596 9.22 788 7.78 808
Investments 19,467 6.36 16,483 6.42 2,984
Federal funds sold and other 1,621 5.31 2,964 5.92 (1,343)
Total interest income 97,795 8.05 92,774 8.14 5,021
Interest expense:
Deposits - NOW 1,436 1.34 1,939 1.79 (503)
Savings 1,928 1.99 2,113 2.04 (185)
Money Market 2,364 2.34 2,577 2.52 (213)
Time 33,543 5.61 30,631 5.71 2,912
Short-term borrowings 3,078 4.44 2,583 4.82 495
FHLB borrowings 2,267 6.52 3,003 6.32 (736)
Long-term debt, other 84 8.78 84 6.98 0
Total interest expense 44,700 4.43 42,930 4.50 1,770
Net interest income $ 53,095 $ 49,844 $3,251
Spread 3.62 3.64
Net interest margin 4.37 % 4.37 %
*Fully taxable equivalent
Year-to-Date
1996 1995
------------------- ------------------
(dollars in thousands) Amount Rate Amount Rate Change
Interest income:*
Loans - Commercial $41,050 8.86 % $39,103 9.24 % $1,947
Commercial - Real Estate 62,690 9.37 61,466 9.48 1,224
Consumer - Mortgage 47,580 8.19 47,529 8.01 51
Consumer 74,327 8.89 67,537 8.72 6,790
Assets held for resale 3,360 7.85 1,208 7.56 2,152
Investments 56,744 6.37 51,726 6.47 5,018
Federal funds sold and other 4,488 5.31 6,022 6.04 (1,534)
Total interest income 290,239 8.14 274,591 8.19 15,648
Interest expense:
Deposits - NOW 4,366 1.36 5,877 1.88 (1,511)
Savings 5,944 2.00 6,619 2.06 (675)
Money Market 7,060 2.32 8,055 2.53 (995)
Time 96,482 5.59 86,884 5.60 9,598
Short-term borrowings 8,430 4.34 7,447 4.92 983
FHLB borrowings 7,138 6.48 8,157 6.05 (1,019)
Long-term debt, other 265 8.61 301 7.61 (36)
Total interest expense 129,685 4.39 123,340 4.40 6,345
Net interest income $160,554 $151,251 $9,303
Spread 3.75 3.79
Net interest margin 4.49 % 4.50 %
*Fully taxable equivalent
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PERIOD-END LOAN PORTFOLIO ANALYSIS
(in thousands) 1996 1995
----------------------------------- ------------------------
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
Commercial:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Commercial and industrial loans $ 501,907 $ 481,481 $ 463,126 $ 448,639 $ 414,973
Floor plan financing 146,124 148,670 148,109 163,431 144,888
Obligations of political subdivisions 28,523 26,783 28,169 31,159 31,534
Total commercial loans 676,554 656,934 639,404 643,229 591,395
Commercial real estate:
Commercial and industrial 684,480 673,567 671,153 680,161 680,678
Multi-family residential 77,553 76,014 76,077 73,079 68,733
Obligations of political subdivisions 30,283 29,335 30,365 33,010 30,007
Agricultural 8,458 8,401 8,832 8,853 4,812
Construction and land development 72,278 75,807 71,281 73,211 70,630
Total commercial real estate 873,052 863,124 857,708 868,314 854,860
Consumer:
Real estate 798,728 789,384 804,573 828,059 795,058
Installment 553,665 557,476 570,255 562,592 566,431
Home equity 273,331 260,004 239,455 239,915 229,413
Personal lines of credit 36,627 36,519 37,094 39,053 37,263
Lease financing 269,980 233,762 207,063 184,554 169,198
Total consumer loans 1,932,331 1,877,145 1,858,440 1,854,173 1,797,363
Total loans $ 3,481,937 $ 3,397,203 $ 3,355,552 $ 3,365,716 $ 3,243,618
</TABLE>
<TABLE>
<CAPTION>
RISK ELEMENTS ANALYSIS
(in thousands) 1996 1995
------------------------------------ ----------------------------
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
Nonperforming assets:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Nonaccrual loans $ 16,944 $ 16,999 $ 16,335 $ 16,740 $ 15,695
Troubled debt restructurings 582 954 632 503 102
Other real estate 7,316 7,678 7,761 8,984 9,288
Total nonperforming assets 24,842 25,631 24,728 26,227 25,085
Loans 90 days or more past due 20,094 19,475 15,200 14,995 13,579
Total risk elements $ 44,936 $ 45,106 $ 39,928 $ 41,222 $ 38,664
- - Delinquent loans to period-end loans* 2.37% 2.40% 2.13% 2.18% 1.74%
- - Nonperforming assets to period-end loans 0.71% 0.75% 0.74% 0.78% 0.77%
- - Total risk elements to period-end loans 1.29% 1.32% 1.19% 1.22% 1.19%
*The numerator consists of loans 30 days or more past due.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
COMPONENTS OF NONPERFORMING ASSETS
(in thousands) 1996 1995
--------------------------------- ------------------------
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Commercial $ 4,071 $ 4,650 $ 4,362 $ 4,213 $ 3,735
Commercial real estate:
Construction and development 861 1,113 1,388 1,260 1,183
Permanent 11,005 10,795 9,842 10,389 9,400
Residential real estate 373 419 712 612 638
Consumer 1,216 976 663 769 841
Nonaccrual and restructured loans 17,526 17,953 16,967 17,243 15,797
Other real estate 7,316 7,678 7,761 8,984 9,288
Total nonperforming assets $ 24,842 $ 25,631 $ 24,728 $ 26,227 $ 25,085
</TABLE>
<TABLE>
<CAPTION>
ALLOWANCE FOR CREDIT LOSSES
(in thousands) 1996 1995
-------------------------------- ----------------------
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Balance at beginning of period $ 44,271 $ 44,287 $ 44,377 * 43,303 * 43,589
Allowance obtained through mergers - - - 1,750 -
Allowance transferred out - - - - (815)
Loans charged-off:
Commercial (141) (616) (218) (373) (13)
Real estate secured (431) (672) (563) (556) (171)
Consumer (1,945) (1,033) (1,706) (1,407) (1,555)
Lease financing (196) (143) (269) (291) (184)
Total loans charged-off (2,713) (2,464) (2,756) (2,627) (1,923)
Recoveries:
Commercial 38 76 271 74 17
Real estate secured 209 99 105 282 21
Consumer 329 208 252 204 231
Lease financing 49 29 50 34 23
Total recoveries 625 412 678 594 292
Net loans charged-off (2,088) (2,052) (2,078) (2,033) (1,631)
Provision for credit losses 2,312 2,036 1,988 1,357 2,160
Balance at end of period $ 44,495 $ 44,271 $ 44,287 $ 44,377 $ 43,303
- - Net loans charged-off to average loans* 0.24% 0.24% 0.25% 0.24% 0.20%
- - Provision for credit losses to ave. lns* 0.27% 0.24% 0.24% 0.16% 0.26%
- - Allowance for credit losses to loans 1.28% 1.30% 1.32% 1.32% 1.34%
*Annualized
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
OTHER RATIOS
1996 1995
---------------------------------- ---------------------
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
<S> <C> <C> <C> <C> <C>
Investment portfolio - market to amortized cost 99.5% 99.1% 99.7% 100.7% 99.9%
Dividend payout ratio 53.3% 51.4% 53.7% 53.7% 52.3%
Loans to deposits ratio, average 83.5% 83.8% 85.0% 84.3% 84.7%
</TABLE>
<TABLE>
<CAPTION>
FEE GENERATION ACTIVITY
(in thousands) 1996 1995
---------------------------------- --------------------
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
<S> <C> <C> <C> <C> <C>
Mortgage loans originated $ 55,287 $ 61,103 $ 50,808 $ 41,607 $ 48,010
Mortgage loans sold 25,248 38,015 33,387 29,729 30,503
End of period mortgages serviced for others 555,004 540,088 551,055 520,809 509,631
End of period indirect loans securitized & serviced 108,359 120,824 53,375 59,899 67,960
</TABLE>
<TABLE>
<CAPTION>
Market Price and Dividends Declared *
Closing Bid Price Range
Dividends
Quarter High Low Declared
1996
<S> <C> <C> <C>
I $22.83 $19.83 $0.24
II 22.75 20.75 0.24
III 25.33 21.67 0.24
Total $0.72
1995
I $20.17 $17.50 $0.23
II 19.33 18.00 0.23
III 21.50 18.50 0.23
IV 22.67 19.67 0.24
Total $0.93
1994
I $21.50 $18.33 $0.21
II 21.33 18.50 0.21
III 21.33 18.50 0.21
IV 20.17 18.17 0.23
Total $0.86
*Restated for the three-for-two stock split declared July, 1996.
</TABLE>
