$FKYS

FIRST KEYSTONE CORP

CIK:0000737875|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
INTEREST INCOME
Interest and fees on loans	$ 14,359	$ 14,359	$ 28,484	$ 28,128
Interest and dividend income on securities:
Taxable	3,586	3,814	7,224	7,747
Tax-exempt	207	230	416	474
Dividends	25	18	39	30
Dividend income on restricted investment in bank stocks	206	195	407	394
Interest on interest-bearing deposits in other banks	1,593	268	2,648	321
Total interest income	19,976	18,884	39,218	37,094
INTEREST EXPENSE
Interest on deposits	6,469	6,395	13,379	12,781
Interest on short-term borrowings	1,455	1,473	2,937	3,030
Interest on long-term borrowings	1,237	1,237	2,461	2,461
Interest on subordinated debt	499	274	994	547
Total interest expense	9,660	9,379	19,771	18,819
Net interest income	10,316	9,505	19,447	18,275
(Recovery of) provision for credit losses	(299)	(237)	(689)	514
Net interest income after provision for credit losses	10,615	9,742	20,136	17,761
NON-INTEREST INCOME
Increase in cash surrender value of life insurance	174	155	344	320
ATM fees and debit card income	599	576	1,143	1,119
Net gains on sales of mortgage loans	13	18	59	38
Net securities gains	374	105	548	19
Gains from life insurance proceeds		20		255
Other	132	84	184	159
Total non-interest income	2,145	1,798	3,958	3,557
NON-INTEREST EXPENSE
Salaries and employee benefits	4,228	4,303	9,195	8,933
Occupancy, net	570	562	1,211	1,172
Furniture and equipment expense	209	211	425	403
Computer expense	507	416	1,061	829
Professional services	441	374	904	752
Pennsylvania shares tax	272	267	543	488
FDIC insurance, net	320	304	643	613
ATM and debit card fees	347	306	609	553
Data processing fees	422	385	813	742
Advertising	100	138	182	243
Other	1,022	995	2,025	2,182
Total non-interest expense	8,438	8,261	17,611	16,910
Income before income tax expense	4,322	3,279	6,483	4,408
Income tax expense	545	365	747	441
NET INCOME	$ 3,777	$ 2,914	$ 5,736	$ 3,967
Net income per share:
Basic	$ 0.6	$ 0.47	$ 0.91	$ 0.64
Diluted	0.6	0.47	0.91	0.64
Dividends per share	$ 0.28	$ 0.28	$ 0.56	$ 0.56
Trust department
NON-INTEREST INCOME
Non-interest income	$ 295	$ 280	$ 581	$ 541
Service charges and fees
NON-INTEREST INCOME
Non-interest income	$ 558	$ 560	$ 1,099	$ 1,106

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 5,736	$ 3,967
Adjustments to reconcile net income to net cash provided by operating activities:
(Release of) provision for credit losses on loans	(689)	514
Release of credit losses on unfunded commitments	(5)	(6)
Depreciation and amortization	664	609
Net (discount accretion) premium amortization on securities	(113)	104
Deferred income tax expense	111	210
Net gains on sales of mortgage loans	(59)	(38)
Proceeds from sales of mortgage loans originated for sale	2,585	1,921
Originations of mortgage loans originated for sale	(2,875)	(1,258)
Net securities gains	(548)	(19)
Decrease in accrued interest receivable	333	39
Increase in cash surrender value of bank owned life insurance	(344)	(320)
Gain from bank-owned life insurance proceeds	0	(255)
Net losses on disposals of premises and equipment	4	2
(Increase) decrease in other assets	(188)	516
Amortization of investment in low-income housing partnerships	409	409
(Decrease) increase in accrued interest payable	(218)	167
Increase (decrease) in other liabilities	105	(833)
NET CASH PROVIDED BY OPERATING ACTIVITIES	4,908	5,729
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities and redemptions of debt securities available-for-sale	28,933	26,887
Purchases of debt securities available-for-sale	(4,000)	(2,500)
Net (increase) decrease in restricted investment in bank stocks	(35)	40
Net increase in loans originated as held for investment	(1,501)	(12,368)
Proceeds from bank-owned life insurance	0	1,237
Purchase of premises and equipment	(214)	(267)
NET CASH PROVIDED BY INVESTING ACTIVITIES	23,183	13,029
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits	42,473	11,398
Net decrease in short-term borrowings	(1,241)	(4,875)
Dividends paid, net of reinvestment	(2,611)	(3,482)
NET CASH PROVIDED BY FINANCING ACTIVITIES	38,621	3,041
INCREASE IN CASH AND CASH EQUIVALENTS	66,712	21,799
CASH AND CASH EQUIVALENTS, BEGINNING	121,249	17,254
CASH AND CASH EQUIVALENTS, ENDING	187,961	39,053
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid	19,989	18,653
Income taxes paid	3	0
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES
Right-of-use assets obtained in exchange for lease liabilities	$ 34	$ 33

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and due from banks	$ 9,004,000	$ 8,755,000
Interest-bearing deposits in other banks	178,957,000	112,494,000
Total cash and cash equivalents	187,961,000	121,249,000
Debt securities available-for-sale, at fair value	369,084,000	394,226,000
Marketable equity securities, at fair value	2,358,000	1,810,000
Restricted investment in bank stocks, at cost	8,979,000	8,944,000
Loans held for investment	948,848,000	947,285,000
Loans held for sale	1,483,000	1,140,000
Allowance for credit losses	(8,779,000)	(9,412,000)
Net loans	941,552,000	939,013,000
Premises and equipment, net	19,028,000	19,377,000
Operating lease right-of-use assets	1,304,000	1,326,000
Accrued interest receivable	4,664,000	4,997,000
Cash surrender value of bank owned life insurance	26,706,000	26,362,000
Investments in low-income housing partnerships	3,924,000	4,333,000
Deferred income taxes	5,750,000	6,463,000
Other assets	3,005,000	2,877,000
TOTAL ASSETS	1,574,315,000	1,530,977,000
LIABILITIES
Non-interest bearing	230,888,000	206,823,000
Interest bearing	949,022,000	930,614,000
Total deposits	1,179,910,000	1,137,437,000
Short-term borrowings	135,604,000	136,845,000
Long-term borrowings	106,000,000	106,000,000
Subordinated debentures	25,000,000	25,000,000
Operating lease liabilities	1,847,000	1,862,000
Accrued interest payable	2,517,000	2,735,000
Other liabilities	4,981,000	8,038,000
TOTAL LIABILITIES	1,455,859,000	1,417,917,000
STOCKHOLDERS' EQUITY
Preferred stock, par value $2.00 per share; authorized 1,000,000 shares as of June 30, 2026 and December 31, 2025; issued 0 as of June 30, 2026 and December 31, 2025	0	0
Common stock, par value $2.00 per share; authorized 20,000,000 shares as of June 30, 2026 and December 31, 2025; issued 6,554,012 as of June 30, 2026 and 6,503,746 as of December 31, 2025; outstanding 6,322,401 as of June 30, 2026 and 6,272,135 as of December 31, 2025	13,108,000	13,007,000
Surplus	46,717,000	45,888,000
Retained earnings	81,544,000	79,327,000
Accumulated other comprehensive loss	(17,204,000)	(19,453,000)
Treasury stock, at cost, 231,611 shares as of June 30, 2026 and December 31, 2025	(5,709,000)	(5,709,000)
TOTAL STOCKHOLDERS' EQUITY	118,456,000	113,060,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,574,315,000	$ 1,530,977,000