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) January 17, 1997
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
1
<PAGE>
Item 5. Other Events
The following documents are filed as an exhibit to this Form 8-K:
I. Press Release of Keystone Financial, Inc.
dated January 17, 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: January 20, 1997 /s/ Donald F. Holt
---------------- -----------------------
Donald F. Holt
Senior Vice President &
Controller
2
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
- ---------- ---------------
99.1 Press Release of Keystone Financial, Inc. dated
January 17, 1997.
99.2 Fiscal Insight
3
<PAGE>
January 17, 1997 Mark L. Pulaski
(717)231-5702
KEYSTONE FINANCIAL REPORTS 4TH QUARTER/YEAR END RESULTS
HARRISBURG, PA, January 17 - Keystone Financial, Inc., (NMS,NASDAQ:KSTN), the
fifth largest bank holding company headquartered in Pennsylvania, today reported
operating results for the fourth quarter and year ended December 31, 1996.
Net income for the fourth quarter of 1996 reached $17,860,000, or 47 cents per
share versus $16,204,000, or 45 cents per share for the same period in 1995. Net
income for 1996 was $69,475,000, compared with $61,314,000, in 1995. Performance
during 1996, the highest level of profitability ever achieved by Keystone,
resulted in earnings per share of $1.83 versus $1.73 in 1995, an increase of 6
percent. The 1996 return on average assets was 1.37% and the return on average
equity was 14.11%.
Assets at the close of 1996 increased to $5,231,268,000, compared with
$5,074,785,000, at the close of 1995. Loans increased to $3,553,662,000, from
$3,365,716,000 in 1995, and deposits grew to $4,097,111,000, versus
$4,061,888,000, during the same period.
"We are pleased with our 1996 performance," Carl L. Campbell, president and
chief executive officer said. "Recently announced acquisitions to continue to
strengthen our market positions, reconfiguration of our delivery system, and
expansion of our product capabilities to meet changing customer preferences
highlight an active and productive year for Keystone," he added. "We are
confident that the strength of our core markets, the many benefits associated
with our franchise growth, and the dedication of our employees will allow us to
sustain our momentum in 1997," he concluded.
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 services including Martindale Andres
& Co., (asset management firm), West Conshohocken, PA; Keystone Dealer Finance
Center, Williamsport, PA, and KeyCall Phone Banking Center, Cumberland, MD.
4
<PAGE>
Upon completion of the previously announced acquisitions of Financial
Trust Corp, 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 Corporation of Western
Maryland, a thrift holding company headquartered in Cumberland, MD with
approximately $345 million in assets, the assets of Keystone will increase 30%
to approximately $6.7 billion and Keystone will operate over 200 offices in
Pennsylvania, Maryland and West Virginia. The completion of both acquisitions is
scheduled for later this year.
####
5
<PAGE>
FINANCIAL HIGHLIGHTS
Keystone's financial performance for 1996 reflected continued improvement as net
income reached a record high of $69,475,000, a 13.3% improvement over 1995 net
income of $61,314,000. Earnings per share also grew to $1.83 in 1996, a 5.8%
improvement over the 1995 performance of $1.73. Keystone recorded strong
performance in both return on average assets (ROA) and return on average equity
(ROE). These traditional measures of financial institution performance provide a
relative basis for comparison to Keystone's peer group. ROA and ROE for 1996
were 1.37% and 14.11%, respectively, also improved over the comparable measures
of 1.29% and 14.06% in 1995.
Revenue expansion efforts continued to be the primary focus of Keystone's profit
improvement initiatives during 1996. Total revenues, consisting of both net
interest income and noninterest income, grew 9.5% from 1995 to 1996, including a
5.8% increase in net interest income and a 24.5% increase in revenue from
noninterest sources. Net interest income growth was stimulated by increased loan
volume, including loans added in late 1995 bank mergers, as net interest margin
was relatively constant from 1995 to 1996. Average loans increased by more than
$165 million or 5.1% during 1996. In addition, Keystone originated and
subsequently sold in the secondary market, an additional $282 million of
consumer mortgages and indirect automobile loans. These secondary market
activities helped to fuel the increase in revenue from noninterest income as
mortgages and indirect loans serviced for others increased to $576 million and
$174 million, respectively. Likewise, as assets under management grew, Keystone
experienced growth in trust and investment advisory fees, which helped to
further advance its strategic objective to deliver a complete line of financial
service products to its customer base.
Keystone's ratio of noninterest expense to revenues of 58.73% for 1996 reflected
improvement over the ratio of 59.78% for 1995, as growth in noninterest expenses
was held to 7.9%. Increases in salary and benefit costs were influenced by the
addition of employees from late 1995 bank mergers, the acquisition of Martindale
Andres (specialized investment advisory services) and the purchase of Key
Investor (retail annuity products). Noninterest expenses benefited from a
full-year reduction in the FDIC insurance premium. Excluding the influence of
prior year acquisitions, total noninterest expenses grew approximately 3%.
Finally, Keystone continued to sustain solid asset quality in its investment and
loan portfolios,
<TABLE>
<CAPTION>
1996 1995
Fourth Third Second First Fourth
Annual Quarter Quarter Quarter Quarter Annual Quarter
- --------------------------------------------------------------------------------------------- ------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Earnings per share* $ 1.83 $ 0.47 $ 0.45 $ 0.47 $ 0.44 $ 1.73 $ 0.45
Return on average assets 1.37% 1.38% 1.32% 1.43% 1.36% 1.29% 1.32%
Return on average equity 14.11% 14.05% 13.63% 14.60% 14.02% 14.06% 13.99%
Net interest margin 4.48% 4.42% 4.37% 4.56% 4.57% 4.49% 4.45%
Noninterest income/revenues 22.44% 23.41% 22.45% 21.60% 22.29% 19.45% 19.37%
Provision for credit losses/Average loans 0.28% 0.39% 0.27% 0.24% 0.24% 0.24% 0.16%
Noninterest expense/revenues 58.73% 57.71% 59.56% 57.73% 59.95% 59.78% 58.92%
Nonperforming assets to loans ----- 0.75% 0.71% 0.75% 0.74% ----- 0.78%
90 day past due loans to loans 0.50% 0.58% 0.57% 0.45% ----- 0.44%
- ----------------------------------------------------------------------------------------------- ----------------
Total risk elements to loans ----- 1.25% 1.29% 1.32% 1.19% ----- 1.22%
=============================================================================================== ================
Allowance for credit losses to loans ----- 1.27% 1.28% 1.30% 1.32% ----- 1.32%
Allowance for credit losses to
nonperforming loans ----- 233% 254% 247% 261% ----- 257%
Net charge-offs/Average loans 0.27% 0.34% 0.24% 0.24% 0.25% 0.21% 0.24%
Equity to assets ----- 9.70% 9.69% 9.79% 9.74% ----- 9.47%
Total risk adjusted capital ratio ----- 14.59% 14.80% 15.02% 14.92% ----- 14.83%
- ----------------------------------------------------------------------------------------------- ----------------
*Restated for the three-for-two stock split declared July 1996.
</TABLE>
6
<PAGE>
PER SHARE STATISTICS (1)
Earnings per Share
- --------------------------------------------------------------------------------
Fourth Third Second First
Quarter Quarter Quarter Quarter Total
- --------------------------------------------------------------------------------
1996 $0.47 $0.45 $0.47 $0.44 $1.83
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 38,043,623 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
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 $13.38 $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>
<CAPTION>
QUARTER-END INFORMATION
(dollars in thousands) 1996 1995
- ------------------------------------------------------------------------------ -----------
Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
- ------------------------------------------------------------------------------ -----------
<S> <C> <C> <C> <C> <C>
Loans $3,553,662 $3,481,937 $3,397,203 $3,355,552 $3,365,716
Earning assets 4,919,579 4,885,173 4,720,625 4,672,069 4,755,763
Total assets 5,231,268 5,186,129 5,020,979 4,966,610 5,074,785
Deposits 4,097,111 4,111,103 4,058,766 3,990,379 4,061,888
Total shareholders' equity 507,307 502,579 491,317 483,890 480,694
Unrealized securities
gains (losses), net (1,087) (4,523) (5,609) (3,438) 1,198
- ------------------------------------------------------------------------------ -----------
Number of shares outstanding 37,908,160 38,164,896 38,034,993 37,989,806 37,884,554
============================================================================== ===========
(1) Restated for the three-for-two stock split declared July 1996.
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED QUARTERLY AVERAGE
STATEMENTS OF CONDITION
(in thousands) 1996 1995
- ---------------------------------------------------------------------------------------------- ---------
Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
- ---------------------------------------------------------------------------------------------- ---------
ASSETS
- ---------------------------------------------------------------------------------------------- ---------
<S> <C> <C> <C> <C> <C>
Earning Assets:
Loans and leases $3,543,229 $3,424,853 $3,367,113 $3,392,181 $3,304,982
Assets held for resale 43,149 68,866 81,505 21,052 21,459
Federal funds sold and other 67,861 121,468 102,138 114,703 162,889
Taxable investment securities 1,066,539 1,085,837 1,032,165 1,069,390 993,056
Nontaxable investment securities 133,827 132,176 124,377 124,200 126,801
- ---------------------------------------------------------------------------------------------- ----------
Total earning assets 4,854,605 4,833,200 4,707,298 4,721,526 4,609,187
Cash and due from banks 159,881 156,475 147,538 143,239 145,080
Allowance for credit losses (44,915) (44,825) (45,071) (45,101) (44,043)
Intangible assets 13,754 14,466 14,921 15,368 14,112
Other assets 159,636 154,195 152,268 148,571 142,500
- ---------------------------------------------------------------------------------------------- ----------
TOTAL ASSETS $5,142,961 $5,113,511 $4,976,954 $4,983,603 $4,866,836
============================================================================================== ==========
LIABILITIES AND EQUITY
- ---------------------------------------------------------------------------------------------------------
Interest-bearing liabilities:
Deposits less than $100,000:
Now accounts $417,264 $424,965 $433,775 $429,358 $425,851
Money market accounts 396,785 398,277 400,426 415,689 415,954
Savings 373,876 389,680 401,689 406,246 392,686
Time deposits 2,146,842 2,118,504 2,049,346 2,016,052 1,947,640
Deposits greater than $100,000 245,706 261,661 237,623 234,974 245,810
Short-term borrowings 283,358 275,735 241,506 261,202 232,644
FHLB Borrowings 166,104 138,279 136,162 167,145 166,130
Long-term debt, other 2,381 2,821 3,385 3,893 4,338
- ---------------------------------------------------------------------------------------------- ----------
Total interest-bearing liabilities 4,032,316 4,009,922 3,903,912 3,934,559 3,831,053
- ---------------------------------------------------------------------------------------------- ----------
Noninterest-bearing deposits 498,838 508,098 494,991 486,975 490,802
Other liabilities 107,393 99,921 90,946 79,837 85,440
- ---------------------------------------------------------------------------------------------- ----------
TOTAL LIABILITIES 4,638,547 4,617,941 4,489,849 4,501,371 4,407,295
- ---------------------------------------------------------------------------------------------- ----------
Shareholders' equity 504,414 495,570 487,105 482,232 459,541
- ---------------------------------------------------------------------------------------------- ----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $5,142,961 $5,113,511 $4,976,954 $4,983,603 $4,866,836
============================================================================================== ==========
</TABLE>
GROWTH IN AVERAGE BALANCES (1)
1996 1995
- ---------------------------------------------------------------------- --------
Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
- ---------------------------------------------------------------------- --------
Loans 7.2% 4.9% 3.0% 5.1% 6.0%
Total assets 5.7% 7.0% 5.9% 5.9% 5.2%
Deposits 4.1% 6.4% 4.9% 4.6% 3.7%
Shareholders' equity 9.8% 12.6% 13.3% 16.2% 12.6%
====================================================================== ========
(1) Compares current quarter to the comparable quarter of the prior year.
8
<PAGE>
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands) 1996 1995
- --------------------------------------------------------------------------------------------------- --------------------
Fourth Third Second First Fourth
Annual Quarter Quarter Quarter Quarter Annual Quarter
- --------------------------------------------------------------------------------------------------- --------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Interest income $384,521 $97,911 $96,599 $94,596 $95,415 $363,931 $93,646
Tax equivalent adjustment 4,892 1,263 1,196 1,234 1,199 5,618 1,312
- --------------------------------------------------------------------------------------------------- --------------------
389,413 99,174 97,795 95,830 96,614 369,549 94,958
Interest expense 174,758 45,073 44,700 42,161 42,824 166,579 43,239
- --------------------------------------------------------------------------------------------------- --------------------
Net interest income 214,655 54,101 53,095 53,669 53,790 202,970 51,719
Provision for credit losses 9,858 3,522 2,312 2,036 1,988 7,859 1,357
- --------------------------------------------------------------------------------------------------- --------------------
Net interest income after provision 204,797 50,579 50,783 51,633 51,802 195,111 50,362
Noninterest income 62,117 16,536 15,373 14,782 15,426 49,004 12,427
Security transactions 556 3 ----- 101 452 1,317 925
Noninterest expense 162,559 40,762 40,781 39,519 41,497 150,634 38,338
- --------------------------------------------------------------------------------------------------- --------------------
Income before income taxes 104,911 26,356 25,375 26,997 26,183 94,798 25,376
Income taxes 30,544 7,233 7,154 8,030 8,127 27,866 7,860
Tax equivalent adjustment 4,892 1,263 1,196 1,234 1,199 5,618 1,312
- --------------------------------------------------------------------------------------------------- --------------------
NET INCOME $69,475 $17,860 $17,025 $17,733 $16,857 $61,314 $16,204
=================================================================================================== ====================
Tax effect of security transactions $195 $1 ----- $35 $158 $461 $324
=================================================================================================== ====================
</TABLE>
<TABLE>
<CAPTION>
ANALYSIS OF NONINTEREST INCOME
(dollars in thousands) 1996 1995
- -------------------------------------------------------------------------------------------------- --------------------
Fourth Third Second First Fourth
Annual Quarter Quarter Quarter Quarter Annual Quarter
- -------------------------------------------------------------------------------------------------- --------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Trust and investment advisory fees $15,201 $ 4,043 $ 3,751 $ 3,726 $ 3,681 $12,557 $ 3,371
Service charges - deposits 14,611 3,793 3,667 3,689 3,462 13,205 3,486
Mortgage banking income 7,467 1,930 1,853 1,986 1,698 6,111 1,283
Fee income 14,086 3,771 3,514 3,492 3,309 12,135 3,076
Reinsurance income 2,266 591 551 538 586 2,047 505
Other 8,486 2,408 2,037 1,351 2,690 2,949 706
- -------------------------------------------------------------------------------------------------- ---------------------
Total noninterest income $62,117 $16,536 $15,373 $14,782 $15,426 $49,004 $12,427
================================================================================================== =====================
Noninterest income to average assets* 1.23% 1.28% 1.19% 1.19% 1.24% 1.03% 1.01%
================================================================================================== =====================
*Annualized
</TABLE>
<TABLE>
<CAPTION>
ANALYSIS OF NONINTEREST EXPENSE
(dollars in thousands) 1996 1995
- --------------------------------------------------------------------------------------------------- ---------------------
Fourth Third Second First Fourth
Annual Quarter Quarter Quarter Quarter Annual Quarter
- --------------------------------------------------------------------------------------------------- ---------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Salaries expense $69,270 $17,628 $17,852 $16,819 $16,971 $62,115 $16,864
Employee benefits 12,562 2,603 3,065 3,064 3,830 10,898 2,520
Occupancy expense 13,348 3,207 3,324 3,329 3,488 12,650 3,073
Furniture and equipment expense 14,063 3,767 3,536 3,405 3,355 12,435 3,365
Deposit insurance 778 194 198 171 215 4,957 520
Other expense 52,538 13,363 12,806 12,731 13,638 47,579 11,996
- --------------------------------------------------------------------------------------------------- ---------------------
Total noninterest expense $162,559 $40,762 $40,781 $39,519 $41,497 $150,634 $38,338
=================================================================================================== =====================
Noninterest expense to average assets* 3.22% 3.14% 3.16% 3.18% 3.34% 3.16% 3.13%
=================================================================================================== =====================
Noninterest expense to revenues 58.73% 57.71% 59.56% 57.73% 59.95% 59.47% 58.92%
=================================================================================================== =====================
Avg. full-time equivalent employees 2,445 2,444 2,456 2,449 2,432 2,315 2,334
=================================================================================================== =====================
*Annualized
</TABLE>
9
<PAGE>
NET INTEREST INCOME ANALYSIS
Fourth Quarter
- ----------------------------------------------------- -------------------------
1996 1995
- ----------------------------------------------------- -------------------------
(dollars in thousands) Amount Rate Amount Rate Change
- ----------------------------------------------------- -------------------------
Interest income:*
Loans - Commercial $14,312 8.72% $13,384 9.35% $928
Commercial - Real Estate 21,269 9.32 20,959 9.49 310
Consumer - Mortgage 15,142 8.01 15,828 7.85 (686)
Consumer 26,887 8.67 24,000 8.95 2,887
Assets held for resale 1,328 12.24 428 7.91 900
Investments 19,321 6.40 18,072 6.40 1,249
Federal funds sold and other 915 5.36 2,287 5.57 (1,372)
- ----------------------------------------------------- -------------------------
99,174 8.12 94,958 8.18 4,216
- ----------------------------------------------------- -------------------------
Interest expense:
Deposits - NOW 1,407 1.34 1,512 1.41 (105)
Savings 1,791 1.91 2,022 2.04 (231)
Money Market 2,440 2.45 2,546 2.43 (106)
Time 33,642 5.60 31,660 5.73 1,982
Short-term borrowings 3,094 4.34 2,746 4.68 348
FHLB borrowings 2,629 6.30 2,670 6.38 (41)
Long-term debt, other 70 8.80 83 7.59 (13)
- ----------------------------------------------------- -------------------------
45,073 4.45 43,239 4.48 1,834
- ----------------------------------------------------- -------------------------
Net interest income $54,101 $51,719 $2,382
- ----------------------------------------------------- -------------------------
Spread 3.67 3.70
===================================================== =========================
Net interest margin 4.42% 4.45%
===================================================== =========================
*Fully taxable equivalent
Year-to-Date
- --------------------------------------------------------------------------------
1996 1995
- -------------------------------------------------------- ----------------------
(dollars in thousands) Amount Rate Amount Rate Change
- -------------------------------------------------------- ----------------------
Interest income:*
Loans - Commercial $55,362 8.82% $52,487 9.27% $2,875
Commercial - Real Estate 83,959 9.36 82,425 9.48 1,534
Consumer - Mortgage 62,722 8.15 63,357 7.97 (635)
Consumer 101,214 8.83 91,537 8.78 9,677
Assets held for resale 4,688 8.74 1,636 7.65 3,052
Investments 76,065 6.38 69,798 6.45 6,267
Federal funds sold and other 5,403 5.32 8,309 5.90 (2,906)
- -------------------------------------------------------- ----------------------
389,413 8.13 369,549 8.19 19,864
- -------------------------------------------------------- ----------------------
Interest expense:
Deposits - NOW 5,773 1.35 7,306 1.69 (1,533)
Savings 7,735 1.97 8,641 2.06 (906)
Money Market 9,500 2.35 10,601 2.50 (1,101)
Time 130,124 5.59 118,542 5.63 11,582
Short-term borrowings 11,524 4.34 10,195 4.85 1,329
FHLB borrowings 9,767 6.43 10,827 6.13 (1,060)
Long-term debt, other 335 9.01 467 9.24 (132)
- -------------------------------------------------------- ----------------------
174,758 4.40 166,579 4.42 8,179
- -------------------------------------------------------- ----------------------
Net interest income $214,655 $202,970 $11,685
- -------------------------------------------------------- ----------------------
Spread 3.73 3.77
======================================================== ======================
Net interest margin 4.48% 4.49%
======================================================== ======================
*Fully taxable equivalent
10
<PAGE>
<TABLE>
<CAPTION>
PERIOD-END LOAN PORTFOLIO ANALYSIS
(in thousands) 1996 1995
- ---------------------------------------------------------------------------------------------- -----------
Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
- ---------------------------------------------------------------------------------------------- -----------
Commercial:
<S> <C> <C> <C> <C> <C>
Commercial and industrial $498,657 $501,907 $481,481 $463,126 $448,639
Floor plan financing 168,521 146,124 148,670 148,109 163,431
Obligations of political subdivisions 36,946 28,523 26,783 28,169 31,159
- ---------------------------------------------------------------------------------------------- -----------
704,124 676,554 656,934 639,404 643,229
- ---------------------------------------------------------------------------------------------- -----------
Commercial real estate:
Commercial and industrial 683,358 684,480 673,567 671,153 680,161
Multi-family residential 76,830 77,553 76,014 76,077 73,079
Obligations of political subdivisions 29,686 30,283 29,335 30,365 33,010
Construction and land development 72,083 72,278 75,807 71,281 73,211
Agricultural 8,621 8,458 8,401 8,832 8,853
- ---------------------------------------------------------------------------------------------- -----------
870,578 873,052 863,124 857,708 868,314
- ---------------------------------------------------------------------------------------------- -----------
Consumer:
Real estate 794,010 798,728 789,384 804,573 828,059
Installment 552,533 553,665 557,476 570,255 562,592
Home equity 294,459 273,331 260,004 239,455 239,915
Personal lines of credit 36,475 36,627 36,519 37,094 39,053
Lease financing 301,483 269,980 233,762 207,063 184,554
- ---------------------------------------------------------------------------------------------- -----------
1,978,960 1,932,331 1,877,145 1,858,440 1,854,173
- ---------------------------------------------------------------------------------------------- -----------
Total loans $3,553,662 $3,481,937 $3,397,203 $3,355,552 $3,365,716
============================================================================================== ===========
</TABLE>
<TABLE>
<CAPTION>
RISK ELEMENTS ANALYSIS
(in thousands) 1996 1995
- ---------------------------------------------------------------------------------------------- -----------
Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
- ---------------------------------------------------------------------------------------------- -----------
Nonperforming assets:
<S> <C> <C> <C> <C> <C>
Nonaccrual loans $18,913 $16,944 $16,999 $16,335 $16,740
Troubled debt restructurings 393 582 954 632 503
Other real estate 7,414 7,316 7,678 7,761 8,984
- ---------------------------------------------------------------------------------------------- -----------
Total nonperforming assets 26,720 24,842 25,631 24,728 26,227
Loans 90 days or more past due 17,649 20,094 19,475 15,200 14,995
- ---------------------------------------------------------------------------------------------- -----------
Total risk elements $44,369 $44,936 $45,106 $39,928 $41,222
- ---------------------------------------------------------------------------------------------- -----------
- - Delinquent loans to period-end loans* 2.16% 2.22% 2.40% 2.13% 2.18%
============================================================================================== ===========
- - Nonperforming assets to period-end loans 0.75% 0.71% 0.75% 0.74% 0.78%
============================================================================================== ===========
- - Total risk elements to period-end loans 1.25% 1.29% 1.32% 1.19% 1.22%
============================================================================================== ===========
*The numerator consists of loans 30 days or more past due.
</TABLE>
11
<PAGE>
COMPONENTS OF NONPERFORMING ASSETS
(in thousands) 1996 1995
- ----------------------------------------------------------------------- -------
Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
- ----------------------------------------------------------------------- -------
Commercial $ 4,306 $ 4,071 $ 4,650 $ 4,362 $ 4,213
Commercial real estate:
Construction and development 764 861 1,113 1,388 1,260
Permanent 11,889 11,005 10,795 9,842 10,389
Residential real estate 918 373 419 712 612
Consumer 1,429 1,216 976 663 769
- ----------------------------------------------------------------------- -------
Nonaccrual and restructured loans 19,306 17,526 17,953 16,967 17,243
Other real estate 7,414 7,316 7,678 7,761 8,984
- ----------------------------------------------------------------------- -------
Total nonperforming assets $26,720 $24,842 $25,631 $24,728 $26,227
======================================================================= =======
<TABLE>
<CAPTION>
ALLOWANCE FOR CREDIT LOSSES
(in thousands) 1996 1995
- -------------------------------------------------------------------------------------------------- ---------
Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
- -------------------------------------------------------------------------------------------------- ---------
<S> <C> <C> <C> <C> <C>
Balance at beginning of period $44,495 $44,271 $44,287 $44,377 $43,303
Allowance obtained through mergers ----- ----- ----- ----- 1,750
Loans charged-off:
Commercial (633) (141) (616) (218) (373)
Real estate secured (515) (431) (672) (563) (556)
Consumer (2,042) (1,945) (1,033) (1,706) (1,407)
Lease financing (329) (196) (143) (269) (291)
- --------------------------------------------------------------------------------------------------- --------
Total loans charged-off (3,519) (2,713) (2,464) (2,756) (2,627)
- --------------------------------------------------------------------------------------------------- --------
Recoveries:
Commercial 58 38 76 271 74
Real estate secured 137 209 99 105 282
Consumer 284 329 208 252 204
Lease financing 39 49 29 50 34
- --------------------------------------------------------------------------------------------------- --------
Total recoveries 518 625 412 678 594
- --------------------------------------------------------------------------------------------------- --------
Net loans charged-off (3,001) (2,088) (2,052) (2,078) (2,033)
Provision for credit losses 3,522 2,312 2,036 1,988 1,357
- --------------------------------------------------------------------------------------------------- --------
Balance at end of period $45,016 $44,495 $44,271 $44,287 $44,377
=================================================================================================== ========
Net loans charged-off to average loans* 0.34% 0.24% 0.24% 0.25% 0.24%
=================================================================================================== ========
Provision for credit losses to average loans* 0.39% 0.27% 0.24% 0.24% 0.16%
=================================================================================================== ========
Allowance for credit losses to loans 1.27% 1.28% 1.30% 1.32% 1.32%
=================================================================================================== ========
* Annualized
</TABLE>
12
<PAGE>
OTHER RATIOS
1996 1995
- ------------------------------------------------------------------------ -------
Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
- ------------------------------------------------------------------------ -------
Investment portfolio -
market to amortized cost 100.2% 99.5% 99.1% 99.7% 100.7%
Dividend payout ratio 55.3% 53.3% 51.4% 53.7% 53.7%
Loans to deposits ratio, average 86.9% 83.5% 83.8% 85.0% 84.3%
======================================================================== =======
<TABLE>
<CAPTION>
FEE GENERATION ACTIVITY
(in thousands) 1996 1995
- --------------------------------------------------------------------------- --------
Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
- --------------------------------------------------------------------------- --------
<S> <C> <C> <C> <C> <C>
Mortgage loans originated $54,695 $55,287 $61,103 $ 50,808 $41,607
Mortgage loans sold $28,183 $25,248 $38,015 $ 33,387 $29,729
End of period mortgages serviced
for others $575,655 $555,004 $540,088 $551,055 $520,809
End of period indirect loans
securitized & serviced $174,147 $108,359 $120,824 $53,375 $ 59,899
=========================================================================== ========
</TABLE>
MARKET PRICE AND DIVIDENDS DECLARED*
- ---------------------------------------------------------
Closing Bid Price Range
- ---------------------------------------------------------
Dividends
Quarter High Low Declared
- ---------------------------------------------------------
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
=========================================================
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
- ---------------------------------------------------------
$0.86
=========================================================
*Restated for the three-for-two stock split declared July 1996.
13
<PAGE>
