8-K

                       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)    June 19, 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




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 June 19, 1998.



                                   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:     June 19, 1998             Donald F. Holt
                                    ---------------------------
                                    Senior Vice President &
                                    Chief Financial Officer





EXHIBIT INDEX

Exhibit No.       Description
- ----------        ---------------

  99.1            Press Release of Keystone Financial, Inc. dated
                  June 19, 1998.

EX-99.1

                                          Amy Mountain, Keystone Financial
                                                            717-231-5736
                                          Tom Earley, Financial Trust
                                                            717-241-7760

  Keystone Financial Announces Completion of Capital Region Expansion
   Financial Trust acquires former Pennsylvania National Bank offices


HARRISBURG, PA. (June 19, 1998) -- Keystone Financial, Inc. today confirmed that
its Financial Trust subsidiary  completed the acquisition of seven  Pennsylvania
National Bank  community  offices that serve the greater  Harrisburg  area.  The
consolidation previously announced in January ensures that customers,  served by
the Keystone Financial subsidiaries of Financial Trust and Pennsylvania National
Bank, will continue to benefit from a focus on their unique regions.

Seven offices of Pennsylvania National Bank join Carlisle-based Financial Trust.
The  consolidation  demonstrates  the commitment of Financial Trust to providing
customers in the  Harrisburg  area with a full array of  financial  products and
services.

At the same time, Pottsville-based Pennsylvania National Bank continues to focus
on customers in the Northeast Pennsylvania region.  Expansion efforts into Berks
and Schuylkill counties are underway.
                                



"Keystone  Financial  and its  member  banks  are  committed  to  supercommunity
banking," says Carl L.  Campbell,  chairman and CEO of Keystone  Financial.  "We
understand  the value of providing  local  service and  decision  making for our
customers.  Our affiliates are independent  organizations  with local executives
and  boards  dedicated  to  serving   customers  in  a  way  that  supports  our
relationship-oriented philosophy."

Financial Trust is a Carlisle-based  financial services  institution with assets
of approximately $1.2 billion. Acquired by Keystone Financial in 1997, Financial
Trust now serves customers in Dauphin, Cumberland,  Lancaster,  Franklin, Adams,
York and Perry  counties  through a system of 42  community  offices  and 74 ATM
machines.

To better serve  customer  needs,  Financial  Trust is divided into two regions:
Eastern Division and Western Division. Each region offers comprehensive products
and services with local decision making authority and expertise.  Thomas Lennox,
President,  Eastern Division, will oversee 13 offices,  including 9 locations in
Dauphin  County and 4 in Cumberland  County.  Robert Rahal,  President,  Western
Division,  will be responsible for 29 offices  serving  customers in Cumberland,
York, Franklin, Adams and Perry counties.

In conjunction  with its focus on business  lending,  Financial Trust will offer
SBA (Small  Business  Administration)  loans to small business  customers.  And,
customers  will benefit from  extended  Saturday  hours now  available at select
Financial Trust community offices.



     "We are excited at the prospect of serving our  customers  with an expanded
network," says James M. Deitch, President and CEO of Financial Trust. "Customers
can be  confident  that  their  financial  needs will be met  through  the local
expertise of Financial
Trust teams."

Keystone  Financial  is  committed  to  expanding  the  spectrum of products and
services available to customers.  In anticipation of customers' needs,  Keystone
acquired Martindale Andres & Co., a full-service  investment company,  developed
the nation's  second  largest MAC Check ATM network and launched  Pennsylvania's
first full-service mobile banking unit.  Financial Trust furthers that expansion
by  transforming  an  existing  office at Trindle  Road in Hampden  Twp.  into a
specialized  location  dedicated  to the  specific  lines of business  including
business banking, mortgage and leasing.

Ray Wolfe, Financial Trust's chairman, says the forward-thinking, supercommunity
banking  philosophy  appealed  to the bank prior to joining  Keystone.  He adds,
"Customers  are asking for easier access and more options,  particularly  in the
capital region.  This expansion  offers customers the opportunity to bank with a
local  organization  that draws its strength from a seven billion dollar holding
company."

All  customers  will benefit from a talented,  locally  based  management  team.
Chairman Ray L. Wolfe,  brings a wealth of experience from his long  association
with Financial  Trust.  Wolfe  continues to serve in his current  position since
retiring  from  the  Chairman  role at  Keystone  Financial.  James  M.  Deitch,
President  and CEO of  Financial  Trust,  brings a strong  background  in retail
mortgage  lending.  He also serves as Chairman  and Chief  Executive  Officer of
Keystone National Bank, headquartered in Lancaster.



A  prominent  leader in the  business  banking  area,  Thomas  Lennox  serves as
President of Financial  Trust's  Eastern  Division.  Robert Rahal brings over 15
years of experience in commercial,  mortgage and consumer lending to his role as
President of Financial Trust's Western Division.

Harrisburg-based  Keystone  Financial,  Inc.  is  the  third  largest  financial
services  holding company in Pennsylvania  with assets  totalling more than $6.8
billion.  Keystone  Financial  operates  seven member  banks;  Financial  Trust,
Carlisle;  Pennsylvania  National  Bank,  Pottsville;  Keystone  National  Bank,
Lancaster;  Keystone Bank,  N.A.  Horsham;  Mid-State  Bank,  Altoona;  Northern
Central Bank, Williamsport; and American Trust Bank, Cumberland, MD. The company
also operates Keystone  Financial  Mortgage,  Lancaster,  PA; Keystone Financial
Leasing,  Exton, PA; a Telephone  Banking Center in Cumberland,  MD;  Martindale
Andres & Co., West Conshohocken,  PA; and MMC&P, a retirement  benefits services
firm in Pittsburgh,  PA. Keystone Financial's website is located on the Internet
at www.keyfin.com.