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) April 18, 1997
KEYSTONE FINANCIAL, INC.
- ------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Pennsylvania 0-11460 23-2289209
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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
<PAGE>
Item 5. Other Events
The following document is filed as an exhibit to this Form 8-K:
I. Press Release of Keystone Financial, Inc.
dated April 18, 1997.
II. Fiscal Insight
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: April 18, 1997
---------------- -----------------------
Donald F. Holt
Senior Vice President & Controller
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
- ---------- ---------------
99.1 Press Release of Keystone Financial, Inc. dated
April 18, 1997.
99.2 Fiscal Insight
<PAGE>
April 18, 1997
Contacts:
Mark L. Pulaski Donald F. Holt
Senior Executive Vice President Senior Vice President
Chief Financial Officer Corporate Controller
(717) 231-5702 (717) 231-5704
KEYSTONE FINANCIAL REPORTS FIRST QUARTER GAINS
HARRISBURG, PA, April 18--Keystone Financial, Inc., (NASDAQ, NM:KSTN),
Pennsylvania's fifth largest bank holding company, today reported operating
results for the first quarter ended March 31, 1997.
First quarter net income increased to $17,129,000, or 46 cents per share, from
$16,857,000, or 44 cents per share for the comparable period last year. For the
first quarter, return on average assets was 1.34% and return on average equity
was 13.91%.
Assets at the close of the first quarter were $5,189,697,000, a four percent
gain from $4,966,610,000 at the end of the first quarter of 1996. Deposits grew
to $4,080,080,000 from $3,990,379,000 for the corresponding period of 1996, and
loans increased four percent to $3,494,457,000 from last year's $3,355,552,000.
"We are pleased with the reported quarterly performance gain. While net interest
income growth was less than anticipated, fee-based incomes continued to register
strong growth. Competitive market conditions and an increase in the mix of
higher cost deposits moderated the increase in our net interest income, " Carl
L. Campbell, president and chief executive officer said. "We are confident that
the strategies we are pursuing will improve our future performance, and build
shareholder value," he concluded.
<PAGE>
Keystone Financial has six member banks -- American Trust Bank, N.A.,
Cumberland, MD; Frankford Bank, N.A., Horsham, PA; Keystone National Bank,
Lancaster, PA; Mid-State Bank, Altoona, PA; Northern Central Bank, Williamsport,
PA; and Pennsylvania National Bank, Pottsville, PA -- which together operate 145
offices in Pennsylvania, Maryland and West Virginia. Keystone also operates
several non-banking companies providing specialized financial services including
Martindale Andres & Co., (asset management firm), West Conshohocken, PA;
Keystone Dealer Finance Center, Williamsport, PA, and KeyCall Phone Banking
Center, Cumberland, MD.
The previously announced acquisitions of Financial Trust, a bank holding company
headquartered in Carlisle, PA, with approximately $1.2 billion in assets and 48
community offices in seven counties in Pennsylvania and Maryland, and First
Financial of Western Maryland, a thrift holding company headquartered in
Cumberland, MD with approximately $345 million in assets, are scheduled for
completion during the second quarter.
####
<PAGE>
FINANCIAL HIGHLIGHTS
Keystone recorded improved financial performance in the first quarter of 1997 as
net income grew to $17,129,000 and earnings per share (EPS) grew to $0.46. The
growth in EPS reflected a 4.5% increase over 1996 results.
Performance in the first quarter was affected by stable net interest income,
continued improvement in noninterest income, and controlled growth in overhead
expenses.
Net interest margin exhibited improvement to 4.46% during the period, slightly
higher than the 4.42% in the fourth quarter of 1996. Growth in average loans was
6.4%.
The provision for credit losses was increased by 85% from the first quarter of
1996, as a result of both loan growth and increased net charge-offs. The
provision also resulted in an increased ratio of the allowance to loans to
1.31%, up from 1.27% at year-end.
Noninterest revenues continued to reflect strength from increased trust,
investment management, ATM and other fee categories. Other income includes gains
of approximately $2.5 million from the sale of community offices pursuant to
Keystone's office reconfiguration strategy.
Overhead expenses grew 5.4%, primarily as a result of increased staff
compensation.
<TABLE>
<CAPTION>
1997 1996
- ----------------------------------------------------- -----------------------------------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter Annual
- ----------------------------------------------------- -----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Earnings per share $0.46 $0.47 $0.45 $0.47 $0.44 $1.83
Return on average assets 1.34% 1.38% 1.32% 1.43% 1.36% 1.37%
Return on average equity 13.91% 14.05% 13.63% 14.60% 14.02% 14.11%
Net interest margin 4.46% 4.42% 4.37% 4.56% 4.57% 4.49%
Noninterest income/revenues 25.77% 23.41% 22.45% 21.60% 22.29% 22.44%
Provision for credit losses/Average loans 0.41% 0.39% 0.27% 0.24% 0.24% 0.28%
Noninterest expense/revenues 59.78% 57.71% 59.56% 57.73% 59.95% 58.73%
Nonperforming assets to loans 0.77% 0.75% 0.71% 0.75% 0.74% -
90 day past due loans to loans 0.53% 0.50% 0.58% 0.57% 0.45% -
- ----------------------------------------------------- -----------------------------------------------------------------
Total risk elements to loans 1.30% 1.25% 1.29% 1.32% 1.19% -
===================================================== =================================================================
Allowance for credit losses to loans 1.31% 1.27% 1.28% 1.30% 1.32% -
Allowance for credit losses to
nonperforming loans 227% 233% 254% 247% 261% -
Net charge-offs/Average loans 0.32% 0.34% 0.24% 0.24% 0.25% 0.27%
Equity to assets 9.47% 9.70% 9.69% 9.79% 9.74% -
Total risk adjusted capital ratio 13.58% 14.59% 14.80% 15.02% 14.92% -
- ----------------------------------------------------- -----------------------------------------------------------------
</TABLE>
<PAGE>
PER SHARE STATISTICS
Earnings per Share
- -------------------------------------------------------------------------
Fourth Third Second First
Quarter Quarter Quarter Quarter Total
- -------------------------------------------------------------------------
1997 $0.46 $0.46
1996 $0.47 $0.45 $0.47 $0.44 $1.83
1995 $0.45 $0.43 $0.43 $0.42 $1.73
=========================================================================
Average Shares Outstanding
- -------------------------------------------------------------------------
Fourth Third Second First Average
Quarter Quarter Quarter Quarter For Year
- -------------------------------------------------------------------------
1997 37,552,848 37,552,848
1996 38,043,623 38,164,065 38,022,920 37,950,453 38,045,585
1995 36,142,553 35,352,675 35,197,571 35,146,901 35,462,358
=========================================================================
Book Value per Share
- ------------------------------------------------------------------------
Fourth Third Second First
Quarter Quarter Quarter Quarter
- ------------------------------------------------------------------------
1997 $13.20
1996 $13.38 $13.17 $12.92 $12.75
1995 $12.69 $12.64 $12.40 $12.04
========================================================================
<TABLE>
<CAPTION>
QUARTER-END INFORMATION
(dollars in thousands) 1997 1996
- ------------------------------------------ -----------------------------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
- ------------------------------------------ -----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Loans $3,494,457 $3,553,662 $3,481,937 $3,397,203 $3,355,552
Earning assets 4,907,494 4,919,579 4,885,173 4,720,625 4,672,069
Total assets 5,189,697 5,231,268 5,186,129 5,020,979 4,966,610
Deposits 4,080,080 4,097,111 4,111,103 4,058,766 3,990,379
Total shareholders' equity 491,248 507,307 502,579 491,317 483,890
Unrealized securities gains
(losses), net (4,636) (1,087) (4,523) (5,609) (3,438)
- ------------------------------------------ ------------------------------------------------------------
Number of shares outstanding 37,218,177 37,908,160 38,164,896 38,034,993 37,989,806
========================================== ============================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED QUARTERLY AVERAGE
STATEMENTS OF CONDITION
(in thousands) 1997 1996
- -------------------------------------------------------- ------------------------------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
- -------------------------------------------------------- ------------------------------------------------------------
ASSETS
- -------------------------------------------------------- ------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Earning Assets:
Loans and leases $3,608,887 $3,543,229 $3,424,853 $3,367,113 $3,392,181
Loans held for resale 73,186 43,149 68,866 81,505 21,052
Federal funds sold and other 57,771 67,861 121,468 102,138 114,703
Taxable investment securities 1,019,202 1,066,539 1,085,837 1,032,165 1,069,390
Nontaxable investment securities 134,283 133,827 132,176 124,377 124,200
- -------------------------------------------------------- ------------------------------------------------------------
Total earning assets 4,893,329 4,854,605 4,833,200 4,707,298 4,721,526
Cash and due from banks 146,113 159,881 156,475 147,538 143,239
Allowance for credit losses (45,429) (44,915) (44,825) (45,071) (45,101)
Intangible assets 13,283 13,754 14,466 14,921 15,368
Other assets 166,704 159,636 154,195 152,268 148,571
- -------------------------------------------------------- ------------------------------------------------------------
TOTAL ASSETS $5,174,000 $5,142,961 $5,113,511 $4,976,954 $4,983,603
======================================================== ============================================================
LIABILITIES AND EQUITY
- -------------------------------------------------------- ------------------------------------------------------------
Interest-bearing liabilities:
Deposits less than $100,000:
Now accounts $338,793 $417,264 $424,965 $433,775 $429,358
Money market accounts 382,187 396,785 398,277 400,426 415,689
Savings 431,803 373,876 389,680 401,689 406,246
Time deposits 2,183,379 2,146,842 2,118,504 2,049,346 2,016,052
Deposits greater than $100,000 242,865 245,706 261,661 237,623 234,974
Short-term borrowings 290,358 283,358 275,735 241,506 261,202
FHLB Borrowings 215,862 166,104 138,279 136,162 167,145
Long-term debt, other 2,066 2,381 2,821 3,385 3,893
- -------------------------------------------------------- ------------------------------------------------------------
Total interest-bearing liabilities 4,087,313 4,032,316 4,009,922 3,903,912 3,934,559
- -------------------------------------------------------- -----------------------------------------------------------
Noninterest-bearing deposits 485,216 498,838 508,098 494,991 486,975
Other liabilities 102,194 107,393 99,921 90,946 79,837
- -------------------------------------------------------- -----------------------------------------------------------
TOTAL LIABILITIES 4,674,723 4,638,547 4,617,941 4,489,849 4,501,371
- -------------------------------------------------------- -----------------------------------------------------------
Shareholders' equity 499,277 504,414 495,570 487,105 482,232
- -------------------------------------------------------- -----------------------------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $5,174,000 $5,142,961 $5,113,511 $4,976,954 $4,983,603
======================================================== ===========================================================
</TABLE>
GROWTH IN AVERAGE BALANCES (1)
1997 1996
- ------------------------------------ ------------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
- ------------------------------------ ------------------------------------------
Loans 6.4% 7.2% 4.9% 3.0% 5.1%
Total assets 3.8% 5.7% 7.0% 5.9% 5.9%
Deposits 1.9% 4.1% 6.4% 4.9% 4.6%
Shareholders' equity 3.5% 9.8% 12.6% 13.3% 16.2%
==================================== ==========================================
(1) Compares current quarter to the comparable quarter of the prior year.
<PAGE>
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands) 1997 1996
- --------------------------------------- --------------------------------------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter Annual
- --------------------------------------- --------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Interest income $97,847 $97,911 $96,599 $94,596 $95,415 $384,521
Tax equivalent adjustment 1,272 1,263 1,196 1,234 1,199 4,892
- --------------------------------------- --------------------------------------------------------------------
99,119 99,174 97,795 95,830 96,614 389,413
Interest expense 44,835 45,073 44,700 42,161 42,824 174,758
- --------------------------------------- --------------------------------------------------------------------
Net interest income 54,284 54,101 53,095 53,669 53,790 214,655
Provision for credit losses 3,674 3,522 2,312 2,036 1,988 9,858
- --------------------------------------- --------------------------------------------------------------------
Net interest income after
provision 50,610 50,579 50,783 51,633 51,802 204,797
Noninterest income 18,847 16,536 15,373 14,782 15,426 62,117
Security transactions 19 3 - 101 452 556
Noninterest expense 43,720 40,762 40,781 39,519 41,497 162,559
- --------------------------------------- --------------------------------------------------------------------
Income before income taxes 25,756 26,356 25,375 26,997 26,183 104,911
Income taxes 7,355 7,233 7,154 8,030 8,127 30,544
Tax equivalent adjustment 1,272 1,263 1,196 1,234 1,199 4,892
- --------------------------------------- --------------------------------------------------------------------
NET INCOME $17,129 $17,860 $17,025 $17,733 $16,857 $69,475
======================================= ====================================================================
Tax effect of security
transactions $7 $1 - $35 $158 $195
=============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
ANALYSIS OF NONINTEREST INCOME
(dollars in thousands) 1997 1996
- --------------------------------------------------- ---------------------------------------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter Annual
- --------------------------------------------------- ---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Trust and investment advisory fees $4,136 $4,043 $3,751 $3,726 $3,681 $15,201
Service charges on deposit accounts 3,508 3,793 3,667 3,689 3,462 14,611
Fee income 4,086 3,771 3,514 3,492 3,309 14,086
Mortgage banking income 1,518 1,930 1,853 1,986 1,698 7,467
Other secondary market income 513 1,237 1,246 629 459 3,571
Reinsurance income 884 591 551 538 586 2,266
Other income 4,202 1,171 791 722 2,231 4,915
- ---------------------------------------------------- --------------------------------------------------------------------
Total noninterest income $18,847 $16,536 $15,373 $14,782 $15,426 $62,117
==================================================== ====================================================================
Noninterest income to average assets* 1.48% 1.28% 1.19% 1.19% 1.24% 1.23%
==================================================== ====================================================================
*Annualized
</TABLE>
<TABLE>
<CAPTION>
ANALYSIS OF NONINTEREST EXPENSE
(dollars in thousands) 1997 1996
- ---------------------------------------------------- -------------------------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter Annual
- ---------------------------------------------------- -------------------------------------------------------
- ---------------------------------------------------- -------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Salaries expense $18,426 $17,628 $17,852 $16,819 $16,971 $69,270
Employee benefits 3,997 2,603 3,065 3,064 3,830 12,562
Occupancy expense 3,489 3,207 3,324 3,329 3,488 13,348
Furniture and equipment expense 4,060 3,767 3,536 3,405 3,355 14,063
Other expense 13,748 13,557 13,004 12,902 13,853 53,316
- ---------------------------------------------------- -------------------------------------------------------
Total noninterest expense $43,720 $40,762 $40,781 $39,519 $41,497 $162,559
==================================================== =======================================================
Noninterest expense to average assets* 3.43% 3.14% 3.16% 3.18% 3.34% 3.22%
==================================================== =======================================================
Noninterest expense to revenues 59.78% 57.71% 59.56% 57.73% 59.95% 58.73%
==================================================== =======================================================
Avg. full-time equivalent employees 2,469 2,444 2,456 2,449 2,432 2,445
==================================================== =======================================================
*Annualized
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NET INTEREST INCOME ANALYSIS
First Quarter
- ------------------------------------------------------------- ---------------------------------
1997 1996
- ------------------------------------------------------------- ---------------------------------
(dollars in thousands) Amount Rate Amount Rate Change
- ------------------------------------------------------------- ---------------------------------
<S> <C> <C> <C> <C> <C>
Interest income:*
Loans - Commercial $14,942 8.78% $13,624 9.00% $1,318
Commercial - Real Estate 21,315 9.26 20,795 9.44 520
Consumer - Mortgage 15,004 8.01 16,638 8.43 (1,634)
Consumer 26,794 8.72 24,700 8.93 2,094
Loans held for resale 1,616 8.98 443 8.46 1,173
Investments 18,648 6.56 18,886 6.36 (238)
Federal funds sold and other 800 5.62 1,528 5.36 (728)
- ------------------------------------------------------------- ---------------------------------
99,119 8.18 96,614 8.21 2,505
- ------------------------------------------------------------- ---------------------------------
Interest expense:
Deposits - NOW 1,151 1.38 1,492 1.40 (341)
Savings 1,891 1.78 2,031 2.01 (140)
Money Market 2,407 2.55 2,393 2.32 14
Time 33,054 5.53 31,307 5.59 1,747
Short-term borrowings 3,137 4.38 2,863 4.41 274
FHLB borrowings 3,183 5.98 2,642 6.36 541
Long-term debt, other 12 8.98 96 9.92 (84)
- ------------------------------------------------------------- ---------------------------------
44,835 4.45 42,824 4.38 2,011
- ------------------------------------------------------------- ---------------------------------
Net interest income $54,284 $53,790 $494
- ------------------------------------------------------------- ---------------------------------
Spread 3.73 3.83
============================================================= =================================
Net interest margin 4.46% 4.57%
============================================================= =================================
*Fully taxable equivalent
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
PERIOD-END LOAN PORTFOLIO ANALYSIS
(in thousands) 1997 1996
- -------------------------------------------------------- ---------------------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
- -------------------------------------------------------- ---------------------------------------------------
Commercial:
<S> <C> <C> <C> <C> <C>
Commercial and industrial $528,048 $498,657 $501,907 $481,481 $463,126
Floor plan financing 199,197 168,521 146,124 148,670 148,109
Obligations of political subdivisions 36,968 36,946 28,523 26,783 28,169
- -------------------------------------------------------- ---------------------------------------------------
764,213 704,124 676,554 656,934 639,404
- -------------------------------------------------------- ---------------------------------------------------
Commercial real estate:
Commercial and industrial 702,626 683,358 684,480 673,567 671,153
Multi-family residential 77,617 76,830 77,553 76,014 76,077
Obligations of political subdivisions 28,719 29,686 30,283 29,335 30,365
Construction and land development 86,244 72,083 72,278 75,807 71,281
Agricultural 13,259 8,621 8,458 8,401 8,832
- -------------------------------------------------------- ---------------------------------------------------
908,465 870,578 873,052 863,124 857,708
- -------------------------------------------------------- ---------------------------------------------------
Consumer:
Real estate 605,884 794,010 798,728 789,384 804,573
Installment 529,209 552,533 553,665 557,476 570,255
Home equity 319,555 294,459 273,331 260,004 239,455
Personal lines of credit 37,110 36,475 36,627 36,519 37,094
Lease financing 330,021 301,483 269,980 233,762 207,063
- -------------------------------------------------------- --------------------------------------------------
1,821,779 1,978,960 1,932,331 1,877,145 1,858,440
- -------------------------------------------------------- --------------------------------------------------
Total loans $3,494,457 $3,553,662 $3,481,937 $3,397,203 $3,355,552
======================================================== ==================================================
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
RISK ELEMENTS ANALYSIS
(in thousands) 1997 1996
- -------------------------------------------------------- ----------------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
- -------------------------------------------------------- ----------------------------------------------
Nonperforming assets:
<S> <C> <C> <C> <C> <C>
Nonaccrual loans $19,859 $18,913 $16,944 $16,999 $16,335
Troubled debt restructurings 371 393 582 954 632
Other real estate 6,658 7,414 7,316 7,678 7,761
- -------------------------------------------------------- ----------------------------------------------
Total nonperforming assets 26,888 26,720 24,842 25,631 24,728
Loans 90 days or more past due 18,457 17,649 20,094 19,475 15,200
- -------------------------------------------------------- ----------------------------------------------
Total risk elements $45,345 $44,369 $44,936 $45,106 $39,928
- -------------------------------------------------------- ----------------------------------------------
o Delinquent loans to period-end loans* 1.98% 2.16% 2.22% 2.40% 2.13%
======================================================== ==============================================
o Nonperforming assets to period-end loans 0.77% 0.75% 0.71% 0.75% 0.74%
======================================================== ==============================================
o Total risk elements to period-end loans 1.30% 1.25% 1.29% 1.32% 1.19%
======================================================== ==============================================
*The numerator consists of loans 30 days or more past due.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
COMPONENTS OF NONPERFORMING ASSETS
(in thousands) 1997 1996
- ----------------------------------------------- -----------------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
- ----------------------------------------------- -----------------------------------------------
<S> <C> <C> <C> <C> <C>
Commercial $4,168 $4,306 $4,071 $4,650 $4,362
Commercial real estate:
Construction and development 653 764 861 1,113 1,388
Permanent 11,220 11,889 11,005 10,795 9,842
Residential real estate 1,178 918 373 419 712
Consumer 3,011 1,429 1,216 976 663
- ----------------------------------------------- ------------------------------------------------
Nonaccrual and restructured loans 20,230 19,306 17,526 17,953 16,967
Other real estate 6,658 7,414 7,316 7,678 7,761
- ----------------------------------------------- ------------------------------------------------
Total nonperforming assets $26,888 $26,720 $24,842 $25,631 $24,728
=============================================== ================================================
</TABLE>
<TABLE>
<CAPTION>
ALLOWANCE FOR CREDIT LOSSES
(in thousands) 1997 1996
- -------------------------------------------------------------- -------------------------------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
- -------------------------------------------------------------- -------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance at beginning of period $45,016 $44,495 $44,271 $44,287 $44,377
Allowance obtained through mergers - - - - -
Loans charged-off:
Commercial (318) (633) (141) (616) (218)
Real estate secured (555) (515) (431) (672) (563)
Consumer (2,101) (2,042) (1,945) (1,033) (1,706)
Lease financing (429) (329) (196) (143) (269)
- -------------------------------------------------------------- --------------------------------------------------------------
Total loans charged-off (3,403) (3,519) (2,713) (2,464) (2,756)
- -------------------------------------------------------------- --------------------------------------------------------------
Recoveries:
Commercial 82 58 38 76 271
Real estate secured 231 137 209 99 105
Consumer 248 284 329 208 252
Lease financing 34 39 49 29 50
- -------------------------------------------------------------- --------------------------------------------------------------
Total recoveries 595 518 625 412 678
- -------------------------------------------------------------- --------------------------------------------------------------
Net loans charged-off (2,808) (3,001) (2,088) (2,052) (2,078)
Provision for credit losses 3,674 3,522 2,312 2,036 1,988
============================================================== ==============================================================
Balance at end of period $45,882 $45,016 $44,495 $44,271 $44,287
============================================================== ==============================================================
Net loans charged-off to average loans* 0.32% 0.34% 0.24% 0.24% 0.25%
============================================================== ==============================================================
Provision for credit losses to average loans* 0.41% 0.39% 0.27% 0.24% 0.24%
============================================================== ==============================================================
Allowance for credit losses to loans 1.31% 1.27% 1.28% 1.30% 1.32%
============================================================== ==============================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
OTHER RATIOS
1997 1996
- -------------------------------------------------------------- ---------------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
- -------------------------------------------------------------- ---------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment portfolio - market to amortized cost 99.2% 100.2% 99.5% 99.1% 99.7%
Dividend payout ratio 56.5% 55.3% 53.3% 51.4% 53.7%
Loans to deposits ratio, average 88.8% 86.9% 83.5% 83.8% 85.0%
============================================================== =============================================
</TABLE>
<TABLE>
<CAPTION>
FEE GENERATION ACTIVITY
(in thousands) 1997 1996
- ----------------------------------------------------------------- ----------------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
- ----------------------------------------------------------------- ----------------------------------------------
<S> <C> <C> <C> <C> <C>
Mortgage loans originated $53,640 $54,695 $55,287 $61,103 $50,808
Mortgage loans sold $18,084 $28,183 $25,248 $38,015 $33,387
End of period mortgages serviced for others $582,110 $575,655 $555,004 $540,088 $551,055
End of period indirect loans securitized & serviced $148,611 $174,147 $108,359 $120,824 $53,375
================================================================= ==============================================
</TABLE>
<TABLE>
<CAPTION>
MARKET PRICE AND DIVIDENDS DECLARED
- -------------------------------------------------------------------------------------------------------------------------------
Closing Bid Price Range
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Dividends
Quarter High Low Declared
- -------------------------------------------------------------------------------------------------------------------------------
1997
- -------------------------------------------------------------------------------------------------------------------------------
I $28.00 $24.88 $0.26
- -------------------------------------------------------------------------------------------------------------------------------
$0.26
===============================================================================================================================
1996
- -------------------------------------------------------------------------------------------------------------------------------
I $22.83 $19.83 $0.24
II 22.75 20.75 0.24
III 25.33 21.67 0.24
IV 27.75 24.50 0.26
- -------------------------------------------------------------------------------------------------------------------------------
$0.98
===============================================================================================================================
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
- -------------------------------------------------------------------------------------------------------------------------------
$0.93
===============================================================================================================================
</TABLE>
