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) October 16, 1998
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
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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 October 16, 1998.
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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.
(Registrant)
Date: October 20, 1998 Donald F. Holt
Senior Vice President &
Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description
__________ _______________
99.1 Press Release of Keystone Financial, Inc. dated
October 16, 1998.
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For Further Information Contact:
Donald F. Holt, Sr. Vice President and
Chief Financial Officer
(717) 231-5704
FOR IMMEDIATE RELEASE
KEYSTONE FINANCIAL REPORTS IMPROVED THIRD QUARTER RESULTS
HARRISBURG, PA, Oct. 16 -- Keystone Financial, Inc. (NASDAQ, NM: KSTN), the
third largest bank holding company headquartered in Pennsylvania, today reported
operating results for the third quarter and nine months ended September, 30,
1998.
Third quarter net income reached $25,581,000 or 50 cents per basic share,
compared with $24,600,000, or 48 cents per basic share for the same period last
year. Net income for the nine-month period totaled $74,998,000 or $1.46 per
basic share versus $62,353,000 or $1.21 per basic share in 1997. Results for the
nine months ended September 30, 1997 included the impact of special merger and
portfolio restructuring charges that reduced net income by $8.6 million, or 16
cents per basic share. For the first nine months of 1998, return on average
assets was 1.46 percent and return on average equity was 14.72 percent.
Assets at the close of the third quarter reached $6.9 billion, consisting
primarily of loans totaling $4.6 billion. Total deposits were $5.1 billion at
September 30, 1998.
"Fee-based revenues remain strong," Carl L. Campbell, chairman and chief
executive officer, said. "However, overall revenue growth is still a concern as
net interest margins continue to narrow. We are studying ways to generate
greater profitability, and are focusing on both expanding revenues through
improving our execution of relationship banking, and lowering our costs by
boosting operating efficiency."
Keystone Financial, Inc., with assets of approximately $6.9 billion, has
seven member banks -- American Trust Bank, N.A., Cumberland, MD; Financial Trust
Company, Carlisle, 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., an investment management services provider;
Keystone Financial Mortgage Co.; Keystone Brokerage, Inc., offering full-service
investment planning and discount brokerage; MMC&P, a retirement benefit services
firm; and a 24 hours a day, seven days a week Telephone Banking Center.
For more information, visit the company's web site on the Internet at
www.keyfin. com.
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Keystone Financial, Inc.
Financial Highlights (Unaudited)
For the Three Months Ended For the Nine Months Ended
-------------------------- -------------------------
9/30/98 9/30/97 9/30/98 9/30/97(a)
----------- ----------- ---------- ----------
Net income $25,581,000 $24,600,000 $74,998,000 $62,353,000
Basic Earnings Per Share $.50 $.48 $1.46 $1.21
Diluted Earnings Per Share $.50 $.47 $1.44 $1.19
Average shares outstanding 51,368,000 51,834,000 51,540,000 51,596,000
(a) Includes the impact of second quarter 1997 merger and portfolio
restructuring charges which reduced net income by $8.6 million, or 16 cents per
share.
