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) January 16, 1998
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 5. Other Events
The following document is filed as an exhibit to this Form 8-K:
I. Press Release of Keystone Financial, Inc.
dated January 16, 1998.
Signatures
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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: January 22, 1998 Donald F. Holt
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Senior Vice President &
Corporate Controller
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EXHIBIT INDEX
Exhibit No. Description
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99.1 Press Release of Keystone Financial, Inc. dated
January 16, 1998.
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Contact: Donald F. Holt January 16, 1998
Senior Vice President &
Corporate Controller
(717) 231-5704
KEYSTONE FINANCIAL REPORTS 4TH QUARTER/YEAR END RESULTS
HARRISBURG, PA, January 16 - Keystone Financial, Inc., (NMS,NASDAQ:KSTN),
the fourth largest bank holding company headquartered in Pennsylvania, today
reported operating results for the fourth quarter and year ended December 31,
1997.
Net income for the fourth quarter of 1997 reached $25,564,000, or $0.49
per share versus $22,789,000, or $0.44 per share for the same period in 1996.
Net income for the year ended December 31, 1997 was $87,917,000, compared with
$89,506,000, in 1996. Excluding the impact of the acquisition-related special
charges and portfolio restructuring losses taken during the second quarter, 1997
net income was $96,499,000 reflecting a 9% increase in basic earnings per share
from $1.72 in 1996 to $1.87, representing a return on average assets of 1.46
percent and a return on average equity of 14.54 percent.
Assets at the close of 1997 increased to $6,841,337,000, compared with
$6,450,579,000, at the close of 1996. Loans increased to $4,712,566,000, from
$4,336,470,000 in 1996, and deposits grew to $5,233,165,000, versus
$5,059,721,000, during the same period.
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"We are pleased with our 1997 performance. These results reflect progress
in advancing our relationship banking strategy, expanding our market and
creating cost efficiencies," Carl L. Campbell, president and chief executive
officer said. "We have a solid platform from which to generate higher levels of
revenues from our growing array of specialized financial products and services.
We are optimistic that as banking industry consolidation continues, our unique
blend of products, personalized service and financial strength will provide us
with opportunities for growth in 1998," he concluded.
Keystone Financial, Inc., with assets of approximately $6.8 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., West Conshohocken, PA, a company providing
investment management services, Keystone Financial Mortgage Co., Lancaster, PA,
MMC&P, a retirement benefit services firm, Pittsburgh, PA, Keystone Financial
Leasing Corporation, Exton, PA and Key Call Phone Banking Center, Cumberland,
MD.
For more information, visit the company's web site on the Internet at
www.keyfin.com
####
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Financial Highlights
(dollars in thousands, except per share data)
<TABLE>
Quarter Ended December 31, Year-To-Date
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Earnings 1997 1996 Change 1997 1996 Change
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<S> <C> <C> <C> <C> <C> <C>
Net Interest Income* $72,788 $69,012 5 % $287,104 $271,092 6
Provision for Credit Losses 3,544 3,778 (6) 15,316 10,713 43
Noninterest Income 24,523 18,725 31 89,932 71,525 26
Noninterest Expense:
As reported 55,329 49,475 12 225,990 196,245 15
Excluding special charges 214,580 196,245 9
Net Income:
As reported 25,564 22,789 12 87,917 89,506 (2)
Excluding special charges and portfolio
restructuring losses 96,499 89,506 8
Earnings Per Share:
Basic:
As reported $0.49 $0.44 11 % $1.70 $1.72 (1)%
Excluding special charges and portfolio
restructuring losses 1.87 1.72 9
Diluted 0.49 0.44 11 1.68 1.70 (1)
Dividends Per Share 0.28 0.26 8 1.06 0.98 8
Performance Indicators
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Return on Average Assets:
As reported 1.50 % 1.42 % 1.33 % 1.43 %
Excluding special charges and portfolio
restructuring losses 1.46 1.43
Return on Average Equity
As reported 14.82 % 13.89 % 13.23 % 14.11 %
Excluding special charges and portfolio
restructuring losses 14.54 14.11
Net Interest Margin 4.56 % 4.58 % 4.59 % 4.61 %
Provision for Credit Losses/Average Loans** 0.30 0.35 0.33 0.26
Noninterest Expense/Revenues:
As reported 58.57 56.39 60.92 57.42
Excluding special charges and portfolio
restructuring losses 57.83 57.42
</TABLE>
December 31,
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At Period End 1997 1996
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Investments $1,619,788 $1,590,052 2%
Loans 4,712,566 4,336,470 9
Total Assets 6,841,337 6,450,579 6
Deposits 5,233,165 5,059,721 3
Shareholders' Equity 685,485 660,406 4
Book Value per Share $13.18 $12.70
Equity to Assets Ratio 10.02 % 10.24 %
Risk Adjusted Capital/Assets Ratio 13.75 15.66
Asset Quality
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Nonperforming Assets to Loans 0.55 % 0.65 %
Loans 90 Days Past Due 0.70 0.46
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Total Risk Elements to Loans 1.25 % 1.11 %
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Allowance for Credit Losses to Loans 1.38 % 1.30 %
Allowance to Nonperforming Loans 310 285
Net Charge-Offs to Average Loans** 0.29 0.31
*Fully taxable-equivalent
**Annualized
