SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) May 30, 1997
KEYSTONE FINANCIAL, INC.
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(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
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code: (717) 233-1555
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Item 2. Acquisition or Disposition of Assets
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On May 30, 1997, Financial Trust Corp (Financial Trust) was merged
with and into the registrant, Keystone Financial, Inc. (Keystone).
The total assets of Financial Trust were approximately $1.2 billion
at March 31, 1997.
On June 12, 1997, Keystone filed a report on Form 8-K which provided
information pursuant to the consummation of the above merger.
Pursuant to Item 7 of the instructions to Form 8-K, the registrant
included the audited financial statements of Financial Trust. As per
the requirements on Form 8-K, certain financial information,
reflecting pro forma financial statements of the registrant
including Financial Trust, are permitted to be filed as an amendment
of the report on Form 8-K. All information necessary to amend the
report on Form 8-K as filed on June 7, 1997, has been included
herein.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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(b) Pro Forma Financial Information
Pursuant to the requirements of Form 8-K, the pro forma financial
information required by Article 11 of Regulation S-X is filed
herewith. Pursuant to Rule 11-01 (a)(2), such pro forma financial
information includes the operations of the registrant and Financial
Trust for the periods specified in Rules 3-01 and 3-02 under the
pooling-of-interests method of accounting, as follows:
Pro forma Combined Condensed Statement of Condition at
March 31, 1997.
Pro forma Combined Condensed Statement of Income for the three
months ended March 31, 1997.
Pro forma Combined Condensed Statement of Income for the three
months ended March 31, 1996.
The above financial statements are filed as Exhibit 19 of this
report on Form 8-K/A and are incorporated herein by reference.
(c) Exhibits
An exhibit index, containing a list of all exhibits filed with this
report, is included at page 4.
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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.
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(Registrant)
Date: August 11, 1997 Donald F. Holt
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Senior Vice President, Controller
and Chief Accounting Officer
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EXHIBIT INDEX
Exhibit
No. Description and Method of Filing
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19.1 Pro forma Combined Condensed Statement of Condition
at March 31, 1997.
19.2 Pro forma Combined Condensed Statement of Income for the three
months ended March 31, 1997.
19.3 Pro forma Combined Condensed Statement of Income for the three
months ended March 31, 1996.
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Keystone Financial, Inc. and Financial Trust Corp
Pro Forma Combined Condensed Statement of Condition
March 31, 1997
(in thousands)
(unaudited)
The unaudited pro forma combined condensed statement of condition combines in
condensed form the consolidated statements of Keystone and Financial Trust as of
March 31, 1997, with certain pro forma adjustments described below. The pro
forma adjustments are based upon the pooling-of-interests method of accounting.
<TABLE>
<CAPTION>
Combined
Keystone &
Keystone Financial Trust Pro Forma Financial Trust
Historical Historical Adjustments Pro Forma
----------- -------------- ------------- ----------------
<S> <C> <C> <C> <C>
ASSETS
Cash and due from banks $139,843 $40,862 $180,705
Federal funds sold and other 101,230 6,946 108,176
Investment securities available for sale 655,986 335,009 990,995
Investment securities held to maturity 374,655 --- 374,655
Assets held for resale 281,165 --- 281,165
Loans and leases 3,494,457 789,629 4,284,086
Allowance for credit losses (45,882) (11,262) (57,144)
----------- -------------- ------------- ----------------
Net loans 3,448,575 778,367 4,226,942
Premises and equipment 75,735 23,211 98,946
Other assets 112,508 28,039 140,547
----------- -------------- ------------- ----------------
TOTAL ASSETS $5,189,697 $1,212,434 $6,402,131
=========== ============== ============= ================
LIABILITIES
Noninterest-bearing deposits $501,670 $113,707 $615,377
Interest-bearing deposits 3,578,410 848,992 4,427,402
----------- -------------- ------------- ----------------
Total deposits 4,080,080 962,699 5,042,779
Fed funds purchased and security
repurchase agreements 246,781 67,109 313,890
Other short-term borrowings 26,029 4,175 30,204
----------- -------------- ------------- ----------------
Total short-term borrowings 272,810 71,284 344,094
FHLB borrowings 239,261 10,919 250,180
Long-term debt 1,928 401 2,329
Other liabilities 104,370 12,487 8,582 (2) 125,439
----------- -------------- ------------- ----------------
TOTAL LIABILITIES 4,698,449 1,057,790 8,582 5,764,821
SHAREHOLDERS' EQUITY
Preferred stock --- --- ---
Common stock 76,715 42,703 (14,519)(1) 104,899
Surplus 74,993 51,493 14,519 (1) 141,005
Retained earnings 375,610 57,355 (8,582)(2) 424,383
Deferred KSOP benefit expense (1,125) --- (1,125)
Treasury stock (30,309) (353) (30,662)
Net unrealized securities losses, net of tax (4,636) 3,446 (1,190)
----------- -------------- ------------- ----------------
TOTAL SHAREHOLDERS' EQUITY 491,248 154,644 (8,582) 637,310
----------- -------------- ------------- ----------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $5,189,697 $1,212,434 --- $6,402,131
=========== ============== ============= ================
</TABLE>
(1) To transfer the common stock of Financial Trust to surplus and reflect the
issuance of 1.65 shares of Keystone common stock for each outstanding share
of Financial Trust common stock.
(2) To accrue merger related special charges expense, net of the tax impact.
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Exhibit 19.2
Keystone Financial, Inc. and Financial Trust Corp
Pro Forma Combined Condensed Statement of Income
Quarter Ended March 31, 1997
(in thousands)
(unaudited)
The unaudited pro forma combined condensed statements of income combine in
condensed form the consolidated statements of Keystone and Financial Trust for
the periods presented. The pro forma combined results are not necessarily
indicative of the results that would have been obtained had the merger been
effective during the periods presented or the combined results of future
operations.
<TABLE>
<CAPTION>
Combined
Keystone &
Keystone Financial Trust Financial Trust
Historical Historical Pro Forma
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<S> <C> <C> <C>
INTEREST INCOME
Loans and fees on loans $77,705 $17,189 $94,894
Investments - taxable 15,832 4,144 19,976
Investments - tax exempt 1,894 1,232 3,126
Federal funds sold and other 800 34 834
Loans held for resale 1,616 --- 1,616
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97,847 22,599 120,446
INTEREST EXPENSE
Deposits 38,507 8,012 46,519
Short-term borrowings 3,137 955 4,092
FHLB borrowings 3,183 249 3,432
Long-term debt 8 6 14
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44,835 9,222 54,057
NET INTEREST INCOME 53,012 13,377 66,389
Provision for credit losses 3,674 120 3,794
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NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES 49,338 13,257 62,595
NONINTEREST INCOME
Trust and investment advisory fees 4,136 708 4,844
Service charges on deposit accounts 3,508 639 4,147
Fee income 4,086 435 4,521
Mortgage banking income 1,518 --- 1,518
Other secondary market income 513 10 523
Reinsurance income 884 136 1,020
Other income 4,202 151 4,353
Net gains - equity securities --- 120 120
Net gains - debt securities 19 10 29
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18,866 2,209 21,075
NONINTEREST EXPENSE
Salaries 18,426 3,194 21,620
Employee benefits 3,997 494 4,491
Occupancy expense (net) 3,489 623 4,112
Furniture and equipment expense 4,060 521 4,581
Other expense 13,748 2,810 16,558
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43,720 7,642 51,362
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INCOME BEFORE INCOME TAXES AND SPECIAL CHARGES 24,484 7,824 32,308
Income tax expense 7,355 2,182 9,537
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NET INCOME BEFORE SPECIAL CHARGES(1) $17,129 $5,642 $22,771
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PER SHARE DATA
Net income $0.46 $0.66 $0.44
Average number of shares outstanding(2) 37,552,848 8,531,876 51,630,443
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</TABLE>
(1) Net income does not include the impact of special charges related to the
merger that will be recognized in the second quarter of 1997. Such charges
will approximate $8.6 million, net of tax.
(2) Combined pro forma shares outstanding reflect Keystone shares plus
Financial Trust shares multiplied by the exchange ratio of 1.65 shares of
Keystone common stock for each share of Financial Trust common stock.
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Exhibit 19.3
Keystone Financial, Inc. and Financial Trust Corp
Pro Forma Combined Condensed Statement of Income
Quarter Ended March 31, 1996
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
Combined
Keystone &
Keystone Financial Trust Financial Trust
Historical Historical Pro Forma
----------- --------------- ----------------
<S> <C> <C> <C>
INTEREST INCOME
Loans and fees on loans $75,417 $16,780 $92,197
Investments - taxable 16,207 3,238 19,445
Investments - tax exempt 1,820 1,314 3,134
Federal funds sold and other 1,528 105 1,633
Loans held for resale 443 --- 443
----------- -------------- ---------------
95,415 21,437 116,852
INTEREST EXPENSE
Deposits 37,223 8,226 45,449
Short-term borrowings 2,863 635 3,498
FHLB borrowings 2,642 44 2,686
Long-term debt 96 8 104
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42,824 8,913 51,737
NET INTEREST INCOME 52,591 12,524 65,115
Provision for credit losses 1,988 146 2,134
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NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES 50,603 12,378 62,981
NONINTEREST INCOME
Trust and investment advisory fees 3,681 630 4,311
Service charges on deposit accounts 3,462 593 4,055
Fee income 3,309 376 3,685
Mortgage banking income 1,698 ( 17) 1,681
Other secondary market income 459 9 468
Reinsurance income 586 94 680
Other income 2,231 141 2,372
Net gains - equity securities 104 52 156
Net gains - debt securities 348 26 374
----------- -------------- ---------------
15,878 1,904 17,782
NONINTEREST EXPENSE
Salaries 16,971 3,006 19,977
Employee benefits 3,830 1,140 4,970
Occupancy expense (net) 3,488 679 4,167
Furniture and equipment expense 3,355 501 3,856
Other expense 13,853 2,581 16,434
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41,497 7,907 49,404
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INCOME BEFORE INCOME TAXES AND SPECIAL CHARGES 24,984 6,375 31,359
Income tax expense 8,127 1,571 9,698
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NET INCOME BEFORE SPECIAL CHARGES(1) $16,857 $4,804 $21,661
----------- -------------- ---------------
PER SHARE DATA
Net income $0.44 $0.56 $0.42
Average number of shares outstanding(2) 37,950,453 8,539,811 52,041,141
----------- -------------- ---------------
</TABLE>
(1) Net income does not include the impact of special charges related to the
merger that will be recognized in the second quarter of 1997. Such charges
will approximate $8.6 million, net of tax.
(2) Combined pro forma shares outstanding reflect Keystone shares plus
Financial Trust shares multiplied by the exchange ratio of 1.65 shares of
Keystone common stock for each share of Financial Trust common stock.
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