HARRISBURG, Pa. - Keystone Financial Inc. said it has agreed to acquire National American Bancorp, based in Towanda, Pa., for $35 million in stock.

National American has one banking subsidiary, the First National Bank of Bradford County, with approximately $150 million in assets and 10 branches.

For the six-month period ended June 30, National reported net income of $912,000, return on assets of 1.17%, and return on equity of 11.18%.

Under the terms of the agreement, and based on Keystone's recent closing market price of $30.25, National American shareholders will receive $60.50 in value for each of the approximately 578,000 oustanding shares of common stock. Keystone currently has 23.5 million shares outstanding.

Upon completion of the acquisition, which is expected later this year subject to regulatory approvals, National American's banking operations will be combined with those of Keystone's Northern Central Bank.

Keystone Financial, based in Harrisburg, has $4.7 billion of assets.

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