ITEM
2.02
Results
of Operations and Financial Condition
On February 16, 2010,
First Keystone Financial, Inc. (the "Company") reported its results of
operations for the three months ended December 31, 2009.
For additional
information, reference is made to the Company's press release dated February 16,
2010, 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 Securities and Exchange Commission (the “SEC”) and shall not be
deemed to be "filed" for any purpose except otherwise provided
herein.
ITEM
2.06
Material
Impairments
In early February 2010,
the Company determined to sell two of its five investments in pooled trust
preferred securities with an aggregate recorded book value and an estimated
aggregate fair value of $4.8 million and $3.3 million, respectively, at December
31, 2009 (with an aggregate unrealized loss of $1.6 million (pre-tax) recorded
as a component of other comprehensive income at such date). Subsequently, the
Company sold such securities on February 12, 2010 for an aggregate sales price
of $2.7 million, resulting in a pre-tax loss of $2.1 million, which will be
recognized in the quarter ending March 31, 2010. In connection with the
recognition of the loss, the Company will eliminate the $1.6 million (pre-tax)
unrealized loss previously recorded as a component of other comprehensive income
with respect to such securities. As a result of the sale of two of the Company’s
investments in pooled trust preferred securities, the Company believes that it
also will be required to recognize losses for the quarter ended March 31, 2010
with respect to its investment in the three remaining pooled trust preferred
securities. At December 31, 2009, these three pooled trust preferred securities
that the Company continues to hold had an aggregate recorded book value and an
estimated aggregate fair value of approximately $2.8 million and $1.9 million,
respectively (with an aggregate unrealized loss of approximately $968,000
(pre-tax) recorded as a component of other comprehensive income at such
date). The actual amount of the loss that will be required to be
recognized in the second quarter of fiscal 2010 with respect to these three
securities may be more or less than the amount of unrealized losses reflected in
stockholders’ equity as of December 31, 2009.
ITEM
8.01
Other
Events
On February 16, 2010, the
Company issued a press release reporting its results of operations for the three
months ended December 31, 2009. Reference is made to the Company’s press release
dated February 16, 2010, which is included as Exhibit 99.1 hereto and
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 or incorporated into any filing
under the Securities Act of 1933, as amended, or the Securities Exchange Act of
1934, as amended, except as may be expressly set forth by specific reference in
such filing.
