-----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, LCbdeZlcvSsn0gI+yzCL0rjCIAJGe1FHMpmX68kR3otZJ0YsvEQwTij+OHlrmovV Qtyrm4B/AkOxJntl3ACvdw== 0001065407-05-000343.txt : 20050506 0001065407-05-000343.hdr.sgml : 20050506 20050506165308 ACCESSION NUMBER: 0001065407-05-000343 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050505 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050506 DATE AS OF CHANGE: 20050506 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 FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25328 FILM NUMBER: 05808688 BUSINESS ADDRESS: STREET 1: 22 WEST STATE ST CITY: MEDIA STATE: PA ZIP: 19063 BUSINESS PHONE: 610 565-6210 MAIL ADDRESS: STREET 1: 22 WEST STATE ST CITY: MEDIA STATE: PA ZIP: 19063 8-K 1 form8k.txt FORM 8-K UNITED STATES 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) May 5, 2005 _____________________________ First Keystone Financial, Inc. ______________________________________________________________________________ (Exact name of registrant as specified in its charter) Pennsylvania 000-25328 23-2576479 ______________________________________________________________________________ (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) Registrant's telephone number, including area code (610) 565-6210 ___________________________ Not Applicable ______________________________________________________________________________ (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02 Results of Operations and Financial Condition _____________________________________________ On May 5, 2005, First Keystone Financial, Inc. (the "Company") reported its results of operations for the quarter ended March 31, 2005. For additional information, reference is made to the Company's press release dated May 5, 2005, which is included as Exhibit 99.1 hereto and is incorporated herein by reference thereto. The press release attached hereto is being furnished to the SEC and shall not be deemed to be "filed" for any purpose except otherwise provided herein. ITEM 9.01 Financial Statements and Exhibits _________________________________ (a) Not applicable. (b) Not applicable. (c) Exhibits The following exhibits are filed herewith. Exhibit Number Description ______________ ____________________________________________ 99.1 Press release dated May 5, 2005. 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: May 6, 2005 By: /s/ Rose M. DiMarco _______________________ Rose M. DiMarco Chief Financial Officer EX-99.1 2 pressrelease.txt PRESS RELEASE Exhibit 99.1 [Letterhead of First Keystone Financial, Inc.] FOR IMMEDIATE RELEASE _____________________ FIRST KEYSTONE FINANCIAL ANNOUNCES SECOND QUARTER RESULTS Media, PA May 5, 2005 - Thomas M. Kelly, President and Chief Executive Officer of First Keystone Financial, Inc. (Nasdaq: FKFS) reported today net income for the quarter ended March 31, 2005 of $638,000, or $0.34 per diluted share, compared to $627,000, or $0.32 per diluted share, for the same period last year. Net income for the six months ended March 31, 2005 was $1.2 million, or $0.63 per diluted share, as compared to $1.4 million, or $0.70 per diluted share, for the same period in 2004. For the three and six months ended March 31, 2005, net interest income increased $188,000, or 6.8%, and $112,000, or 1.5%, respectively, as compared to the same periods in 2004. Interest income increased $340,000, or 5.3%, for the quarter ended March 31, 2005 compared to the same period in the prior year primarily due to a 22 basis point increase in the average yield earned on interest- earning assets. However, interest expense also increased $152,000, or 4.1%, for the quarter ended March 31, 2005 as compared to the second quarter of fiscal 2004 primarily due to a 7 basis point increase in the average rate paid on interest-bearing liabilities combined with a $7.0 million increase in the average balance of such liabilities. Net interest income increased as a result of the weighted average yield earned on interest-earning assets, primarily investment securities, repricing to a greater degree than the cost of interest-bearing liabilities. The Company's interest rate margin on a tax- equivalent basis increased to 2.29% for the quarter ended March 31, 2005 as compared to 2.16% for the same period last year. (See footnote to the table). On a linked quarter basis, net interest income increased $141,000 in the second quarter of fiscal 2005 compared to the first quarter of fiscal 2005. In addition, the net interest margin on a tax-equivalent basis increased 13 basis points to 2.29% from 2.16% for the three months ended December 31, 2004. (See footnote to the table). During the second quarter of fiscal 2005 as compared to the first, the Company experienced a 15 basis point increase in the yield earned on average interest-earning assets which was partially offset by a 3 basis point increase in the rates paid on interest-bearing liabilities. The net interest margin on a tax-equivalent basis included the effects of a special dividend which amounted to 12 basis points. "In this competitive marketplace, we are pleased that core deposits have grown by over $7.0 million from year- end. Our commitment to gain marketshare through a team approach of hiring seasoned business development officers and commercial lenders, whose primary focus is to satisfy the customer, will positively impact our net interest margin," said Mr. Kelly. For the quarter ended March 31, 2005, non-interest income decreased $1.1 million to $1.1 million from the same period last year. Non-interest income decreased $1.3 million to $2.0 million for the six months ended March 31, 2005 in comparison to the same period last year. For the three months ended March 31, 2005, the decrease was primarily the result of gains experienced in the 2004 period related to the gain on sale of equity securities of a company that was acquired. In addition, the decrease was due to the inclusion in the 2004 period of certain non- recurring real estate fees. Non-interest expense for the quarter ended March 31, 2005 decreased $890,000 from the same period last year primarily due to an $1.2 million decrease in employee benefit expenses. In the prior year's second quarter, the Company recognized certain expenses in connection with a non-qualified supplemental retirement plan and the prepayment of a loan to the ESOP which accelerated expense recognition. However, for the second quarter of fiscal 2005, salary expense increased $300,000 by comparison to the same period in 2004 due to additional personnel, merit increases and retirement benefits. The decrease in non- interest expense was partially offset by increases of $63,000 and $31,000 in occupancy expenses and professional fees, respectively. Non-interest expense for the six months ended March 31, 2005 decreased $778,000, or 11.1%, by comparison to the same period in the prior year for the reasons described above. The Company's total assets increased to $576.0 million at March 31, 2005, a $4.1 million increase from $571.9 million at September 30, 2004. Investment and mortgage-related securities held to maturity increased to $56.4 million from $42.7 million at September 30, 2004 mainly due to the Company's strategy to reinvest the proceeds and cash flows from the securities' portfolio into the held to maturity portfolio in order to minimize the effect of price volatility to the Company's balance sheet. Loans receivable increased slightly to $305.6 million from $304.2 million at September 30, 2004. Total deposits increased $10.2 million, or 3.0%, to $355.1 million at March 31, 2005 from $344.9 million at September 30, 2004. Core deposits increased $7.3 million, or 4.1%, as a result of the Company's commitment to focus on business development and aggressively pursue these relationships. The level of the Company's borrowings decreased $7.5 million, or 4.4%, from September 30, 2004 to March 31, 2005. Stockholders' equity decreased $549,000 to $29.1 million resulting from the Company's comprehensive income decreasing $1.6 million combined with dividend payments totaling $397,000 partially offset by net income of $1.2 million for the six months ended March 31, 2005. Total non-performing assets totaled $5.6 million at March 31, 2005 as compared to $3.3 million at September 30, 2004. The Company's ratio of non-performing assets to total assets was 0.98% at March 31, 2005 compared to 0.51% at September 30, 2004. The increase in non-performing assets was primarily due to a $3.8 million commercial real estate loan placed on a non-accrual status partially offset by a $1.3 million commercial and construction loans returning to current status and a $304,000 decrease in real estate owned. First Keystone Bank, the Company's wholly owned subsidiary, serves its customers from eight full-service offices located in Delaware and Chester Counties. 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. This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP") as discussed below. Management of the Company uses these non- GAAP measures in its analysis of the Company's performance. FIRST KEYSTONE FINANCIAL, INC. SELECTED OPERATIONS DATA (In thousands except per share data) (Unaudited) Three Months Ended Six Months Ended March 31, March 31, ____________________________________________ 2005 2004 2005 2004 ____________________________________________ Net interest income $2,961 $2,773 $5,781 $5,669 Provision for loan losses 45 75 90 150 Non-interest income 1,101 2,169 2,000 3,233 Non-interest expense 3,204 4,094 6,250 7,028 -------------------------------------------- Income before taxes 813 773 1,441 1,724 Income tax expense 175 146 280 355 -------------------------------------------- Net income $ 638 $ 627 $1,161 $1,369 ============================================ Basic earnings per share $ 0.35 $ 0.34 $ 0.64 $ 0.75 Diluted earnings per share 0.34 0.32 0.63 0.70 Dividends per share 0.11 0.11 0.22 0.22 Number of shares outstanding at end of period 2,002,132 1,924,871 2,002,132 1,924,871 Weighted average basic shares outstanding 1,824,419 1,826,967 1,804,703 1,832,759 Weighted average diluted shares outstanding 1,873,905 1,951,360 1,853,511 1,955,761 ____________________________________________________________________________________________
FIRST KEYSTONE FINANCIAL, INC. SELECTED FINANCIAL DATA (In thousands except per share data) (Unaudited) March 31, September 30, 2005 2004 _______________________ Total assets $576,026 $571,919 Loans receivable, net 305,647 304,248 Investment and mortgage-related securities available for sale 155,072 161,235 Investment and mortgage-related securities held to maturity 56,431 42,650 Cash and cash equivalents 20,393 17,975 Deposits 355,128 344,880 Borrowings 163,692 171,149 Junior subordinated debt 21,538 21,557 Loan loss allowance 2,079 2,039 Total stockholders' equity 29,149 29,698 Book value per share $14.71 $15.41 _______________________________________________________________________________________
FIRST KEYSTONE FINANCIAL, INC. OTHER SELECTED DATA (Unaudited) At or for the At or for the Three Months Ended Six Months Ended March 31, March 31, ____________________________________ 2005 2004 2005 2004 ____________________________________ Return on average assets (1) 0.45% 0.44% 0.41% 0.49% Return on average equity (1) 8.51% 7.81% 7.79% 8.59% Interest rate spread (1) (2) 2.27% 2.12% 2.21% 2.18% Net interest margin (1) (2) 2.29% 2.16% 2.22% 2.22% Interest-earning assets/interest-bearing liabilities(2) 100.60% 101.41% 100.49% 101.36% Operating expenses to average assets (1) 2.27% 2.91% 2.20% 2.51% Ratio of non-performing assets to total assets at end of period 0.98% 0.51% 0.98% 0.51% Ratio of loan loss allowance to non-performing loans at end of period 43.79% 133.85% 43.79% 133.85%
(1) Annualized. (2) Adjusted for the effects of tax-free investments. This is a non-GAAP presentation. Management believes that presentation of its interest rate spread and net interest margin on a tax- equivalent basis provides useful information that is essential to a proper understanding of the operating results of the Company's business. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. In order to provide accurate comparisons of yields and margins for all earning assets, the interest income earned on tax-exempt assets has been increased to make them fully equivalent to other taxable interest income investments. Without the adjustment for taxes, the interest rate spread would be 2.21% and 2.05% for the quarter ended March 31, 2005 and 2004, respectively, while the net interest margin would be 2.22% and 2.09% for the quarter ended March 31, 2005 and 2004, respectively. Without the adjustment for taxes, the interest rate spread would be 2.15% and 2.11% for the six months ended March 31, 2005 and 2004, respectively, while the net interest margin would be 2.16% and 2.15% for the six months ended March 31, 2005 and 2004, respectively. In addition, with respect to December 31, 2004, without the adjustment for taxes, the interest rate margin would be 2.10%. CONTACT: Thomas M. Kelly, President and Chief Executive Officer Rose M. DiMarco, Chief Financial Officer (610) 565-6210 -----END PRIVACY-ENHANCED MESSAGE-----