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) April 18, 2000
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 April 18, 2000.
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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: April 18, 2000 Donald F. Holt
-------------- ----------------------------
Executive Vice President &
Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description
__________ ______________
99.1 Press Release of Keystone Financial, Inc. dated
April 18, 2000.
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For further information, contact:
Donald F. Holt,
Executive Vice President &
Chief Financial Officer
717-231-5704
Faye E. Feger, Vice President &
Director of Corporate Finance
717-231-5705
Keystone Financial Announces First Quarter Results
Harrisburg, PA - April 18, 2000 - Keystone Financial, Inc. (NASDAQ:
KSTN), the fourth largest financial institution headquartered in
Pennsylvania, today reported operating results for the quarter ended
March 31, 2000.
For the first quarter, Keystone reported net income of $19.86 million
or 41 cents per diluted share compared with $21.1 million or 42 cents
per diluted share (exclusive of special charges) for the first quarter
of 1999. This results in a return on average assets of 1.16%, and a
return on average equity of 14.18 %.
First quarter results at Keystone, as with other regional banks, were
affected by the current interest rate environment which has created
pressure on net interest margins. The origination and sale of fixed-
rate mortgages were also adversely impacted, resulting in declining
levels of mortgage banking revenue for Keystone. Keystone's market
leadership in providing financing for systembuilt housing and other
specialty construction has assisted in mitigating the downturn in
traditional mortgage activity.
Loan growth of 3% and continued expense reductions also assisted in
offsetting some of the pressures created by the interest rate environ-
ment. This loan growth followed periods of declining balances result-
ing from Keystone's decision to curtail indirect lending activity in
late 1997.
Assets as of March 31, 2000 were $7 billion, including loans totaling
$4.5 billion. Deposits were $5.05 billion at March 31, 2000.
"The tough decisions we made in 1999 have positioned Keystone to face
the future with strength. We have proactively addressed and are now
fine-tuning structural and organizational issues that have positioned
Keystone for growth. Throughout 2000, as we put the transition behind
us, our new structure will be important, particularly in light of the
challenges presented by today's interest rate environment" noted
Keystone Financial Chairman and CEO Carl L. Campbell.
Interested parties can log-on to Keystone's website at www.keyfin.com/
investors/investors.html to listen to Keystone's First Quarter 2000
Conference Call. The call will be broadcast live at 2:00 PM ET on
Tuesday, April 18th and available for replay for 14 days following the
broadcast.
Keystone Financial, Inc., the fourth largest financial institution
headquartered in Pennsylvania, is the holding company for Keystone
Financial Bank, NA, which has 175 branches throughout Pennsylvania,
Maryland, and West Virginia. Keystone also operates 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, Keystone can be reached on the
Internet at www.keyfin.com.
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.
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Financial Highlights
(dollars in thousands, except per share data)
Quarter Ended March 31,
Earnings 2000 1999 (3) Change
- --------------------------------------------------------------------------------
Net Interest Income (1) $63,594 $66,700 (5)
Provision for Credit Losses 3,788 2,663 42
Noninterest Income 23,635 25,656 (8)
Net Securities Gains(Losses) 85 425 (80)
Noninterest Expense 54,203 57,686 (6)
Net Income 19,855 21,111 (6)
Earnings Per Share:
Basic $0.41 $0.43 (5)
Diluted 0.41 0.42 (3)
Dividends Per Share 0.29 0.29 -
Performance Indicators
- --------------------------------------------------------------------------------
Return on Average Assets 1.16 % 1.26 %
Return on Average Equity 14.18 13.81
Net Interest Margin 3.99 4.22
Provision for Credit Losses
/Average Loans (2) 0.34 0.24
Noninterest Expense/Revenues 62.14 62.46
March 31,
At Period End 2000 1999 Change
- --------------------------------------------------------------------------------
Investments $1,658,970 $1,725,409 (4)
Loans 4,532,893 4,413,283 3
Total Assets 7,012,346 6,829,509 3
Deposits 5,051,649 5,109,821 (1)
Shareholders' Equity 556,351 583,350 (5)
Book Value per Share $11.39 $11.99
Equity to Assets Ratio 7.93% 8.54%
Risk Adjusted Capital/Assets Ratio 11.73 12.37
Asset Quality
- --------------------------------------------------------------------------------
Nonperforming Assets to Loans 0.86% 0.78%
Loans 90 Days Past Due 0.44 0.57
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Total Risk Elements to Loans 1.30% 1.35%
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Allowance for Credit Losses to Loans 1.34% 1.36%
Allowance to Nonperforming Loans 169 195
Net Charge-Offs to Average Loans (2) 0.28 0.28
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(1) Fully taxable-equivalent
(2) Annualized
(3) Where applicable, 1999 amounts are reported exclusive of special charges
associated with the school districts' settlement and unification of
Keystone's seven banks under a single charter.
