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KEY CENTURION ANNOUNCES 27 PERCENT INCREASE IN FIRST QUARTER 1992 EARNINGS

 KEY CENTURION ANNOUNCES 27 PERCENT INCREASE
 IN FIRST QUARTER 1992 EARNINGS
 CHARLESTON, W.Va., April 27 /PRNewswire/ -- Key Centurion Bancshares, Inc. (NASDAQ: KEYC), West Virginia's largest bank holding company, today announced sharply higher first quarter 1992 earnings of $9.3 million, up 27 percent compared with first quarter 1991 results.
 The quarter's earnings per share (EPS) increased by the same strong percentage. First quarter EPS of 38 cents was up 8 cents from the first quarter of 1991, also a 27 percent increase.
 Return on average equity (ROE) and return on average assets (ROA) both increased significantly during the quarter. The ROE figure equaled 12.5 percent, up from 10.4 percent in the first quarter of 1991. In terms of assets, the ROA was 1.24 percent compared to 1.10 in the comparable period of 1991.
 Marshall T. Reynolds, chairman of the board of Key Centurion, called the quarterly increase "outstanding." While margins increased sharply, he continued, "we have also done a creditable job of controlling expenses. This means that the strong rise in net interest income can be fully reflected in overall net income. With this level of earnings translating into a better stock price," he added, "I am hopeful that we can continue our growth through additional mergers, as highlighted by our imminent entry into a new area of West Virginia."
 Reynolds also pointed to success in reducing total past due and non-performing assets. These figures have declined for two consecutive quarters, dropping by over $4.5 million in six months, a 12.7 percent decrease. Total past due and non-performing assets equaled just 1.03 percent of total assets at quarter's end, while reserve coverage of non-accruing loans stood at 142 percent. At the same time, shareholder equity increased 4.6 percent from the first quarter 1991 to equal 9.93 percent of total assets.
 "This is much more than just another good quarter for West Virginia banks," according to Key Centurion President and Chief Executive Officer A. Michael Perry. "Above and beyond favorable state banking conditions, we have forged these new financial strengths in the context of two other important perspectives." First, Perry pointed to the material increase which came from internal management: the successful reductions in past due and non-performing assets. This, he pointed out, will eventually improve the bottom line, as formerly non-earning assets are converted to productive assets. Second, "we have produced the superior percentage gains of this quarter on top of strong quarterly financial performances last year," he said. "To increase by such a dramatic percentage on top of an excellent record in 1991 is a real tribute to our affiliates and their personnel. We have never suffered any "blow out" quarter because of loan problems or a bad economy that would make for easy quarterly comparisons."
 "Our people have moved Key Centurion's financial performance to what we believe to be a new and higher plane; they have set a fresh standard for this company," Perry continued. "I am, frankly, elated that the hard work of so many people is bearing such evident results."
 Perry pointed out that a definitive agreement to make People's Bank of Charles Town a wholly owned subsidiary was executed recently. When completed, this transaction (still subject to various regulatory approvals and a vote of People's shareholders) would provide initial entry into the fastest growing section of West Virginia, close to the Washington metropolitan market. The transaction -- calling for exchange of 1.5 shares of Key common stock for each share of People's stock -- has an initial market value of $2.52 million, based on a recent Key Centurion stock closing price.
 People's, which has full-service locations in Charles Town and Shepherdstown, W.Va., had year-end 1991 assets of $60.9 million and deposits of $58.5 million.
 Key Centurion, which has assets of more than $3 billion and shareholder equity exceeding $300 million, is now listed among the top 100 banking companies according to market capitalization (share price multiplied by number of shares outstanding). That ranking was based upon market prices at the close of trading March 31, 1992.
 All of the company's financial results include the addition of Southern Bankshares Inc. in a merger completed April 30, 1991. The Southern merger was accounted for as a purchase transaction, and accordingly was included in Key Centurion's results from that date.
 Key Centurion currently has bank subsidiaries with 54 offices in West Virginia and Kentucky, operating as Beckley National Bank, Beckley and Oak Hill; The Central National Bank of Buckhannon, Buckhannon; Charleston National Bank, Charleston; Union National Bank of West Virginia, Clarksburg; The First Huntington National Bank, Huntington; The Lincoln National Bank of Hamlin, Hamlin; The National Bank of Logan, Logan; Boone National Bank, Madison; The First National Bank of New Martinsville, New Martinsville; First National Bank in Philippi, Philippi; Citizens National of Point Pleasant, Pt. Pleasant; Citizens National Bank of St. Albans, St. Albans; Nicholas County Bank, Summersville; Wayne County Bank, Wayne; Security National Bank & Trust, Wheeling; The National Bank of Commerce of Williamson, Williamson, all in West Virginia, and First National Bank of Pikeville in Pikeville, Ky.
 KEY CENTURION BANCSHARES, INC., AND SUBSIDIARIES
 ($ in thousands, except per share data)
 Three Months ended March 31 1992 1991 Pct. Change
 Earnings and dividends:
 Net income $ 9,288 $ 7,306 27.1
 Net interest income 32,836 27,400 19.8
 Cash dividends on common stock 4,073 3,895 4.6
 Per common share:
 Net income $ 0.38 $ 0.30 26.7
 Cash dividends $ 0.17 $ 0.16 6.3
 Shareholders' equity (end
 of period) $12.56 $11.81 6.4
 Market price:
 High $20.00 $12.75 --
 Low $14.50 $10.00 --
 Financial ratios:
 Return on average assets 1.24 pct. 1.10 pct. --
 Return on average equity 12.53 pct. 10.37 pct. --
 Net interest margin 5.08 pct. 4.77 pct. --
 At March 31
 Balance sheet data:
 Assets $3,040,841 $2,714,397 12.0
 Loans 1,404,877 1,338,435 5.0
 Deposits 2,478,909 2,199,956 12.7
 Shareholders' equity 301,821 288,611 4.6
 Average common and common
 equivalent shares 24,192,143 24,640,501 --
 Period end common shares
 outstanding 24,032,538 24,438,381 --
 -0- 4/27/92
 /CONTACT: Larry A. Stark of Key Centurion, 304-526-4337, or home at 304-529-3624/
 (KEYC) CO: Key Centurion Bancshares, Inc. ST: West Virginia IN: FIN SU: ERN


CD-PT -- PG002 -- 2973 04/27/92 09:14 EDT
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Date:Apr 27, 1992
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