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) September 29, 1999
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 September 29, 1999.
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: September 29, 1999 Donald F. Holt
_______________________________
Executive Vice President &
Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description
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99.1 Press Release of Keystone Financial, Inc. dated
September 29, 1999
<PAGE>
For further information, contact:
Donald F. Holt,
Executive Vice President &
Chief Financial Officer
(717) 231-5704
KEYSTONE ISSUES EARNINGS UPDATE
HARRISBURG, PA - Keystone Financial, Inc. today discussed its earnings
expectations for the rest of the year and other related issues, including the
unfavorable impact of lower-than-expected retail loan volume and higher funding
costs. Chief Executive Officer Carl L. Campbell noted, however, that growth of
noninterest income remained strong and said he was confident about emerging
signs of improved performance.
Keystone anticipates full-year earnings per share of approximately $1.90 for
1999, a slight decline from $1.92 reported in 1998. These estimates are
exclusive of previously announced special charges associated with Keystone's
internal restructuring that are expected to reduce earnings per share by
approximately $0.32 in 1999.
In late 1998, Keystone announced plans to combine its seven separate bank
charters in order to reduce costs and achieve a more cohesive presence in its
operating market, which includes most of central Pennsylvania, western Maryland,
and northern West Virginia. Over the last nine months, Keystone has executed on
its plan to reduce operating expenses by 10% by combining the seven charters and
will complete the process of consolidation by the end of 1999. Cost-savings
efforts have progressed according to plan.
"As we entered 1999, we recognized that our restructuring plans would require a
transitional phase that, when completed, would reposition Keystone in its market
and lay the groundwork for future growth and expansion," said Campbell. "While
we are disappointed that we are not seeing more immediate improvement in overall
performance, we remain optimistic about our consolidation efforts. We are also
beginning to see positive signs in the execution of our more focused
line-of-business approach in the commercial, consumer, and asset management
product lines," he added.
During the quarter, Keystone introduced major promotions in both the commercial
and consumer sectors in order to expand customer knowledge of its capabilities
and to leverage its localized expertise and convenient delivery channels. At the
same time, Keystone has executed on a strategy to mitigate the impact on funding
costs of further interest rate increases. Other sources of noninterest revenue
growth such as asset management services, electronic banking fees, and sales of
financial products remain strong and are likely to reach targeted objectives.
Keystone recently launched the marketing of its new identity in its traditional
markets in order to expand customer awareness of the menu of financial services
available through its expansive delivery network. These marketing efforts are
being coordinated with the conversions of separate bank systems and the
introduction of the Keystone brand, each of which are major elements of the
restructuring plan. Products and services provided through Keystone's 170
community offices include commercial and consumer banking services, asset
management services such as trust and estate planning, and an expanded array of
investment vehicles such as annuities, mutual funds, insurance products, and
brokerage services. Additionally, Keystone offers many of its services through
the largest network of automated teller machines in its market and through its
fully-functional telephone service center.
Campbell closed by commenting, "We remain committed to our reorganization
objectives and are confident about our future."
This news release contains forward-looking information. Various factors may
cause actual results to differ materially from estimates contained herein. Such
factors include, but are not limited to, prevailing economic conditions, the
general interest rate environment, competitive factors in the marketplace, and
business risk associated with credit extension and fiduciary activities.
