-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SSMf8G9lU5ZrOW+gR+gaeluWLCKg4mNJ+mt027GzItg2WlzACYgZBGlOIEfBdzKR n+D8xdmyFM3/CYJZTUX6Yw== 0001065407-03-000779.txt : 20031114 0001065407-03-000779.hdr.sgml : 20031114 20031114144702 ACCESSION NUMBER: 0001065407-03-000779 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031112 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST KEYSTONE FINANCIAL INC CENTRAL INDEX KEY: 0000856751 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 232576479 STATE OF INCORPORATION: PA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25328 FILM NUMBER: 031003456 BUSINESS ADDRESS: STREET 1: 22 WEST STATE ST CITY: MEDIA STATE: PA ZIP: 19063 BUSINESS PHONE: 6105656210 8-K 1 form8k.txt FORM 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 November 12, 2003 ______________________________________________________________________________ (Date of earliest event reported) First Keystone Financial, Inc. ______________________________________________________________________________ (Exact name of registrant as specified in its charter) Pennsylvania 000-25328 23-0469351 ______________________________________________________________________________ (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 22 West State Street, Media, Pennsylvania 19063 ______________________________________________________________________________ (Address of principal executive offices) (Zip Code) (610) 565-6210 ______________________________________________________________________________ (Registrant's telephone number, including area code) Not Applicable ______________________________________________________________________________ (Former name, former address and former fiscal year, if changed since last report) ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits ------------------------------------------------------------------ (a) Not applicable. (b) Not applicable. (c) Exhibits The following exhibit is filed herewith. Exhibit Number Description -------------- ----------- 99.1 Press release dated November 12, 2003 announcing results of operations for the three months and year ended September 30, 2003 ITEM 12. Results of Operations and Financial Condition --------------------------------------------- On November 12, 2003, First Keystone Financial, Inc. (the "Company") reported its earnings for the quarter and year ended September 30, 2003. For additional information, reference is made to the Company's press release dated November 12, 2003 which is included as Exhibit 99.1 hereto and is incorporated herein by reference thereto. -2- 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 thereunto duly authorized. FIRST KEYSTONE FINANCIAL, INC. Date: November 14, 2003 By: /s/ Thomas M. Kelly ----------------------------------- Thomas M. Kelly President and Chief Financial Officer -3- EX-99.1 3 pr.txt PRESS RELEASE Exhibit 99.1 FIRST 22 West State Street KEYSTONE Media, PA 19063 FINANCIAL, INC. 610-565-6210 FOR IMMEDIATE RELEASE --------------------- CONTACT: THOMAS M. KELLY, PRESIDENT (610) 565-6210 FIRST KEYSTONE FINANCIAL ANNOUNCES FOURTH QUARTER AND YEAR END RESULTS Media, PA November 12, 2003 - (NASDAQ: FKFS) First Keystone Financial, Inc., the holding company for First Keystone Bank (the "Bank") announced today earnings for the quarter and year ended September 30, 2003. Net income for the fourth quarter was $600,000, or $0.29 per diluted share, compared to $645,000, or $0.32 per diluted share, for the same period last year. For the year ended September 30, 2003, the Company earned $2.7 million, or $1.35 diluted per share as compared to $2.7 million, or $1.34 per diluted share for the prior fiscal year. Net interest income for the three months and fiscal year ended September 30, 2003 decreased $623,000, or 17.5%, and $705,000, or 5.2%, respectively, by comparison to the same periods a year ago. For the quarter ended September 30, 2003, interest income decreased $1.0 million, or 13.4%, which was partially offset by a decrease in interest expense of $370,000, or 9.6%. For the three and twelve months ended September 30, 2003, the decline in net interest income was primarily due to the decrease in interest income resulting from the reduction in the weighted average yield earned on interest- earning assets being greater than the increased interest income due to increased balances in interest earning assets. The Company's net interest margin decreased to 2.33% and 2.64% for the three and twelve months ended September 30, 2003 from 3.05% and 2.95% for the same periods last year. On a linked quarter basis, the net interest margin decreased 11 basis points from 2.44% for the three months ended June 30, 2003. The net interest margin compression during the quarter was primarily a result of high levels of repayments from loan refinancings combined with the accelerated premium amortization of mortgage-related securities. "Although the prolonged historically low interest rate environment has put increasing pressure on our net interest margin and earnings, the Company has still maintained earnings while increasing our core deposit base and non-interest income. With the economy showing signs of improvement, we expect that commercial loan demand will increase thereby improving our margins and returns. The Company continues to focus on increasing non-interest related income and gaining market share. Our expansion of our Willowdale branch to a free standing full service office will increase market presence in the rapidly expanding southern Chester County market while the addition of our Aston Branch solidifies our market presence in the Delaware County Area," Donald S. Guthrie, Chairman and Chief Executive Officer of the Company said. Non-interest income increased $93,000 and $883,000 for the three and twelve months ended September 30, 2003 from the same period last year. The increase in the fourth quarter was primarily due to an increase in service charges and other fees and in the cash surrender value of certain insurance policies held by the Bank to fund retirement benefit plans partially offset by a decrease in the gain on sales of loan and other income. Non-interest expense decreased $595,000, or 16.4%, and $215,000, or 1.8%, for the quarter and year ended September 30, 2003 respectively, compared to the same periods last year. The decrease for the quarter ended September 30, 2003 was primarily attributable to a settlement of a lawsuit which occurred in the prior year's quarter. In addition, non-interest expense during the fourth quarter decreased $55,000 and $121,000 in data processing and other non-interest expenses, respectively, partially offset by increases of $47,000, $33,000 and $30,000 in compensation and employee benefits, occupancy and equipment and professional fees, respectively. The Company's total assets increased to $558.7 million at September 30, 2003 from $518.3 million at September 30, 2002. Mortgage-related securities available for sale increased to $124.7 million, a $39.0 million, or 45.5%, increase at September 30, 2003 mainly due to the Company's reinvestment of cash flows from the loan and investment securities portfolio and leveraging the assets from fiscal year 2002. Such growth was funded through deposit growth and, to a lesser extent, the use of Federal Home Loan Bank advances. The asset growth was partially offset by a decrease in loans receivable from $288.8 million to $286.5 million at September 30, 2003. Total deposits increased $31.9 million, or 9.6%, to $362.6 million at September 30, 2003 from $330.8 million at September 30, 2002. At September 30, 2003, core deposits increased by 29.3 million, or 19.0%, to $183.9 million compared to September 30, 2002. Stockholders' equity decreased slightly primarily due to the repurchase of stock and the payment of dividends offset partially by net income of $2.7 million. Total non-performing assets were $3.0 million at September 30, 2003 as compared to $4.0 million at June 30, 2003 and $5.4 million at September 30, 2002. The Company's ratio of non-performing assets to total assets was 0.53% at September 30, 2003 compared to 1.04% at September 30, 2002. Included in the non-performing assets at September 30, 2002 was a $1.3 million commercial real estate loan which subsequent to year-end has returned to current status. Certain information in this release may constitute forward- looking statements as that term is defined in the Private Securities Litigation Act of 1995. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those estimated due to a number of factors. Persons are cautioned that such forward-looking statements are not guarantees of future performance and are subject to various factors, which could cause actual results to differ materially from those estimated. These factors include, but are not limited to, changes in general economic and market conditions and the development of an interest rate environment that adversely affects the interest rate spread or other income from the Company's and the Bank's investments and operations. The Company does not undertake and specifically disclaims any obligation to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. First Keystone Bank, the Company's wholly owned subsidiary, serves its customers from seven full-service offices in Delaware and Chester Counties. FIRST KEYSTONE FINANCIAL, INC. SELECTED OPERATIONS DATA (In thousands except per share data) (Unaudited) Three Months Ended Fiscal Year Ended September 30, September 30, --------------------------------------------- 2003 2002 2003 2002 --------------------------------------------- Net interest income $2,937 $3,560 $12,876 $13,581 Provision for loan losses 130 135 715 540 Non-interest income 952 859 3,106 2,223 Non-interest expense 3,027 3,622 11,875 12,090 ---------------------------------------------- Income before taxes 732 662 3,392 3,174 Income tax expense 132 17 653 448 ---------------------------------------------- Net income $600 $645 $2,739 $2,726 ============================================== Basic earnings per share $0.32 $0.34 $1.44 $1.42 Diluted earnings per share 0.29 0.32 1.35 1.34 Dividends per share 0.10 0.09 0.40 0.36 Number of shares outstanding at end of period 1,925,337 2,008,611 1,925,337 2,008,611 Weighted average basic shares outstanding 1,889,132 1,901,737 1,901,682 1,915,818 Weighted average diluted shares outstanding 2,035,757 2,026,408 2,028,992 2,033,918 ______________________________________________________________________________________________ SELECTED FINANCIAL DATA (In thousands except per share data) (Unaudited) September 30, September 30, 2003 2002 ---------------------------- Total assets $558,695 $518,346 Loans receivable, net 286,471 288,776 Investment securities and mortgage-related securities 202,356 166,298 Cash and cash equivalents 22,049 24,623 Deposits 362,644 330,765 Borrowings 136,270 126,384 Loan loss allowance 1,986 2,358 Company-obligated mandatorily redeemable preferred securities 20,843 20,880 Total stockholders' equity 32,388 32,795 Book value per share $16.82 $16.33 ______________________________________________________________________________________________ OTHER SELECTED DATA (Unaudited) At or for the At or for the Three Months Ended Fiscal Year Ended September 30, September 30, ------------------------------------- 2003 2002 2003 2002 ------------------------------------- Return on average assets (1) 0.44% 0.51% 0.51% 0.54% Return on average equity (1) 7.48% 8.20% 8.39% 8.77% Interest rate spread (1) (2) 2.19% 2.84% 2.46% 2.72% Net interest margin (1) (2) 2.33% 3.05% 2.64% 2.95% Interest-earning assets/interest-bearing liabilities 105.33% 106.61% 106.06% 106.54% Operating expenses to average assets (1) 2.20% 2.89% 2.22% 2.41% Ratio of non-performing assets to total assets at end of period 0.53% 1.04% 0.53% 1.04% Ratio of loan loss allowance to non-performing assets at end of period 66.73% 43.78% 66.73% 43.78%
____________________________ (1) Annualized for the three month periods. (2) Adjusted for the effects of tax-free investments. -----END PRIVACY-ENHANCED MESSAGE-----