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) July 19, 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 July 19, 1999.
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: July 19, 1999 Donald F. Holt
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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
July 19, 1999
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For further information, contact:
Donald F. Holt,
Executive Vice President &
Chief Financial Officer
(717) 231-5704
KEYSTONE FINANCIAL REPORTS SECOND QUARTER RESULTS
HARRISBURG, PA, July 19, 1999 - In the first full quarter of operations since
initiating its restructuring efforts, Keystone Financial, Inc. (NASDAQ:KSTN)
reported operating results for the second quarter and six months ended June 30,
1999.
Second quarter net income was $24.2 million, compared with $25.3 million, for
the same quarter last year. Excluding the one cent per share impact of special
charges associated with the restructuring, diluted earnings per share for the
quarter reached 50 cents versus 48 cents in 1998. Second quarter results
exclusive of the special charges produced a return on assets of 1.48% and a
return on equity of 17.49% and were favorably influenced by both the
organizational changes initiated in the first quarter and by capital management
efforts.
Results in the first quarter of 1999 had been more severely affected by special
charges that reduced earnings per share in that period by $0.25. Exclusive of
the effect of these charges, second quarter earnings per share grew 19% from the
first quarter.
Net income for the six months ended June 30, 1999 was $32.5 million, or 66 cents
per diluted share. Excluding the special charges, diluted earnings per share
were 92 cents in the first half of 1999, compared with 94 cents in the
comparable 1998 period. For the first six months of 1999, these earnings
resulted in a return on assets and return on equity of 1.37 percent and 15.49
percent, respectively. Assets at the close of the second quarter were $6.7
billion, compared with $6.9 billion at the end of the second quarter of 1998.
Loans were $4.4 billion, while deposits were $5.0 billion at June 30, 1999.
Carl L. Campbell, chairman and chief executive officer, commented, "We are
pleased with the progress we made this quarter as we put the disruption
associated with our restructuring behind us. We are beginning to realize the
benefits of the reorganization, as demonstrated by reduced overhead expense
levels and an improved efficiency ratio. Growth in noninterest revenue remains
strong and has been accompanied by reductions in the level of problem credits."
Keystone Financial, Inc. is the holding company for Keystone Financial Bank, NA,
which has 175 branches throughout Pennsylvania, Maryland, and West Virginia and
a Mobile Bank which operates throughout the tri-state area. Keystone also op-
erates Martindale Andres & Co., an investment management services provider;
Keystone Financial Mortgage Co,; MMC&P, a retirement benefit services firm;
Keystone Brokerage,Inc., offering full service investment planning and
discount brokerage; 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 HYPERLINK
http://www.keyfin.com.
-more-
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KEYSTONE FINANCIAL, INC.
Financial Highlights (Unaudited)
For the Three Months Ended For the Six Months Ended
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6/30/99(a) 6/30/98 6/30/99(a) 6/30/98
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Net income $24,627,000 $25,281,000 $45,738,000 $49,417,000
Basic Earnings per share $.50 $.49 $.93 $.96
Diluted Earnings per share $.50 $.48 $.92 $.94
Average shares outstanding 48,559,000 51,429,000 49,074,000 51,627,000
(a) 1999 amounts exclude special charges associated with the restructuring
which reduced diluted EPS by $0.25 in the first quarter and $0.01 in the
second quarter.
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