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) June 30, 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
<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 July 18, 1997.
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: July 18, 1997 Donald. F. Holt
---------------- -----------------------
Senior Vice President &
Controller
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
- ---------- ---------------
99.1 Press Release of Keystone Financial, Inc. dated
July 18, 1997.
<PAGE>
July 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 SECOND QUARTER RESULTS
HARRISBURG, PA, July 18--Keystone Financial, Inc.,(Keystone)(NASDAQ,NM:KSTN),
the fourth largest bank holding company headquartered in Pennsylvania,
today reported operating results for the second quarter and six months ended
June 30, 1997.
During the second quarter, Keystone completed the mergers of Financial Trust
Corporation, (Financial Trust) and First Financial Corporation of Western
Maryland, (First Financial). The merger of Financial Trust, which was
consummated on May 30, 1997, was accounted for under the pooling of
interests method of accounting and as such, all prior period information has
been restated to include Financial Trust. The merger of First Financial, which
was consummated on May 29, 1997, was accounted for under the purchase method of
accounting.
Second quarter net income was $14,982,000, or 29 cents per share, compared to
$22,769,000, or 43 cents per share for the same period last year. Results for
the second quarter included the impact of the previously announced
special charges associated with the merger of Financial Trust. These
charges, which totaled $11.4 million, included the estimated expenses for
professional services, employment matters, system conversions and
occupancy and equipment. Additionally, approximately $500,000 of investment
securities losses were incurred as a result of post-consummation portfolio
restructuring. Together, these items reduced quarterly net income by $8.6
million or 17 cents per share.
Net income for the six months was $37,753,000, or 73 cents per share versus
$44,430,000, or 85 cents per share for the comparable period of the prior year.
At the close of the first six months of 1997, return on average assets was
1.17% and return on average equity was 11.73%. Excluding the impact of the
special charges and investment securities losses taken during the second
quarter, return on average assets was 1.44% and return on average equity
was 14.35% for the first six months of 1997 versus 1.45% and 14.23%,
respectively for the same period in 1996.
Assets at the close of the second quarter were $6,880,835,000, an 11 percent
gain from $6,208,952,000 at the end of the second quarter of 1996. Deposits grew
to $5,311,487,000 from $5,023,455,000 at the end of the first six months of
1996, and loans increased to $4,592,755,000 from $4,155,048,000 during the same
period in 1996.
"We are pleased with our achievements during the quarter, including the
completion of the mergers of both Financial Trust and First Financial, which
together added over $1.5 billion in assets and significantly increased our
customer base in central Pennsylvania and Maryland," Carl L. Campbell,
president and chief executive officer commented. "The strength of our core
operating results and the planned integration of our new partners,
including anticipated operating efficiencies, cause us to be optimistic
about the future," he concluded.
Keystone Financial, has nine member banks -- American Trust Bank, N.A.,
Cumberland, MD; Chambersburg Trust Company, Chambersburg, PA; Financial Trust
Company, 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 200 offices
in Pennsylvania, Maryland and West Virginia. Keystone also operates Martindale
Andres & Co., West Conshohocken, PA, a company providing investment management
services; as well as other divisions including Keystone Dealer Finance Center,
Williamsport, PA, and KeyCall Phone Banking Center, Cumberland, MD.
####
