March 29, 2005

Mail Stop 0408

By U.S. Mail and facsimile to (610)892-5108

Donald S. Guthrie
Chairman of the Board and Chief Executive Officer
22 West State Street
Media, Pennsylvania 19063

Re:	First Keystone Financial, Inc.
	Form 10-K filed December 29, 2004
	Form 10-Q filed February 14, 2005
	File No. 000-25328

Dear Mr. Guthrie:


      We have reviewed your filing and have the following
comments.
Where indicated, we think you should revise your document in
response
to these comments.  If you disagree, we will consider your
explanation as to why our comment is inapplicable or a revision is
unnecessary.  Please be as detailed as necessary in your
explanation.
In some of our comments, we may ask you to provide us with
supplemental information so we may better understand your
disclosure.
After reviewing this information, we may or may not raise
additional
comments.

	Please understand that the purpose of our review process is
to
assist you in your compliance with the applicable disclosure
requirements and to enhance the overall disclosure in your filing.
We look forward to working with you in these respects.  We welcome
any questions you may have about our comments or any other aspect
of
our review.  Feel free to call us at the telephone numbers listed
at
the end of this letter.

* * * * *

Form 10-K, September 30, 2004:

Non-Interest Income - page 50

1. We note your disclosure that you recognized $550,000 of non-
interest income in connection with the repayment of a commercial
real
estate loan with certain contingent fees due upon repayment of the
loan in full.  Please supplementally tell us the nature of these
contingencies, how they were resolved, and the basis for your
accounting treatment.  In addition, supplementally tell us the
amount, if any, of any loans outstanding with similar
contingencies.

* * * * *



      As appropriate, please amend your filing and respond to
these
comments within 10 business days or tell us when you will provide
us
with a response.  You may wish to provide us with marked copies of
the amendment to expedite our review.  Please furnish a cover
letter
with your amendment that keys your responses to our comments and
provides any requested supplemental information.  Detailed cover
letters greatly facilitate our review.  Please understand that we
may
have additional comments after reviewing your amendment and
responses
to our comments.

	 We urge all persons who are responsible for the accuracy and
adequacy of the disclosure in the filing reviewed by the staff to
be
certain that they have provided all information investors require
for
an informed decision.  Since the company and its management are in
possession of all facts relating to a company`s disclosure, they
are
responsible for the accuracy and adequacy of the disclosures they
have made.

	In connection with responding to our comments, please
provide,
in writing, a statement from the company acknowledging that:

* the company is responsible for the adequacy and accuracy of the
disclosure in the filing;

* staff comments or changes to disclosure in response to staff
comments do not foreclose the Commission from taking any action
with
respect to the filing; and

* the company may not assert staff comments as a defense in any
proceeding initiated by the Commission or any person under the
federal securities laws of the United States.

In addition, please be advised that the Division of Enforcement
has
access to all information you provide to the staff of the Division
of
Corporation Finance in our review of your filing or in response to
our comments on your filing.


      You may contact Ben Phippen, Staff Accountant at (202) 942-
2906
or me at (202) 942-1939 if you have questions.

      						Sincerely,



      Joyce Sweeney
      Senior Accountant


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First Keystone Financial, Inc.
Donald S. Guthrie
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