Keystone Financial Unveils New On-Line Auto Loan Service.

HARRISBURG, Pa.--(BUSINESS WIRE)--Sept. 24, 1997--

Program Coincides with Keystone's Exit from Indirect Auto Loan Business

Keystone Financial Inc. Wednesday announced the implementation of KeyBuy, an innovative, customized research and auto loan service designed to help take the worry and frustration out of buying a new car.

The first direct auto loan service of its kind to be offered by banks in the Keystone market area, KeyBuy customers can research the car they want to buy, apply for an auto loan, and get assistance with their trade-in vehicles - all on-line at www.keyfin.com .

This new direct auto loan and service package is part of Keystone Financial's "relationship banking" philosophy, a customer-centered approach to banking that focuses on building and maintaining long-term relationships with individuals and businesses in the community.

"As Keystone strives towards its vision to be the financial institution of choice for individuals and investors in the mid-Atlantic region, we are constantly looking to offer more value-added services for our customers," explained Lance Kessler, senior vice president for Marketing Services.

"KeyBuy is part of our commitment to find new and better ways to serve our direct auto loan customers."

Buying a car can be a tedious, and often times confusing process. KeyBuy handles those things that buyers don't have the time or desire to do themselves.

KeyBuy helps consumers find the right car for their needs through a series of simple, intuitive questions. For example, a consumer can demand that a car have a sunroof (thereby ranking cars with sunroofs higher than those without).

The guide then generates a personally ranked list of cars. The consumer can then obtain a detailed side-by-side comparison of the cars on the list, and find out which cars missed and why.

After finding the right car, a customer can calculate payments and fill out a loan application online. Once approved, KeyBuy financing includes a Sight Draft (which works like a check) that the customer can take to the dealer. This permits buyers to negotiate with the power of cash and purchase the vehicle of choice right on the spot.

Finally, KeyBuy informs new car buyers about how to dispose of their trade-ins. The service offers tips on preparing the trade-in for sale, and helps customers determine the best price for their old cars.

In addition to the Web Site, KeyBuy is also available via a toll-free number, 888/4-KEYBUY, through which customer service representatives will navigate the car finder for the caller.

The cost of the customized research report and trade-in information is $30 to receive up to three reports via phone, and $3.95 per report to download the report from the KeyBuy Web Site. This service charge is refunded once the auto loan is booked with one of Keystone's community banks.

The introduction of the KeyBuy program coincides with Keystone Financial's exit from the indirect auto loan market - a growing trend for the banking industry. (Indirect loans are those that are offered to consumers through the auto dealers.) Bank of Boston announced their plans to exit the indirect auto loan business last month.

According to Carl L. Campbell, president and CEO of Keystone Financial, indirect lending has become an intensely competitive commodity business, with little to no relationship focus.

"These types of transactions offer little opportunity to develop a stronger and full customer relationship - making them inconsistent with our philosophy and way of doing business," said Campbell.

In addition, Campbell noted, the high costs associated with the securitization and sale of these loans into the secondary market -- thereby freeing up funds on the balance sheet for other lending purposes -- makes the indirect business only marginally profitable.

Keystone Financial announced that it will continue to service existing indirect auto dealer loans until they are paid, and the banks will continue to service auto dealers with floor plan financing through their commercial loan departments.

Keystone Financial Inc., with assets of approximately $6.9 billion, has nine member banks -- American Trust Bank, N.A., Cumberland, Md.; Chambersburg Trust Co., Chambersburg, Pa.; Financial Trust Co., Carlisle, Pa.; First National Bank and Trust Co., Waynesboro, Pa.; Keystone 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 nearly 200 offices in Pennsylvania, Maryland and West Virginia.

Keystone also operates Martindale Andres & Co., West Conshohocken, Pa., a company providing investment management services, Keystone Financial Mortgage Co., Lancaster, Pa. and Key Call Phone Banking Center, Cumberland, Md.

CONTACT: Keystone Financial

Lance Kessler, senior vice president for Marketing

717/231-5729