Market Overview

First Keystone Announces Second Quarter 2018 Earnings (Unaudited)


First Keystone Corporation (OTC:FKYS), parent company of First
Keystone Community Bank, reported net income of $2,476,000 and
$4,253,000, respectively, for the three and six month periods ended June
30, 2018. Earnings per share were $0.43 and $0.74 and dividends totaled
$0.27 and $0.54 per share, respectively, for the three and six months
ended June 30, 2018. June 30, 2018 year-to-date net income increased by
$48,000 as compared to the same period in 2017. The increase was driven
primarily by an increase in interest income due to positive loan growth
and a decrease in income tax expense.

During the six months ended June 30, 2018, total interest income
increased by $1,101,000 or 6.9% as compared to the same six months of
2017, chiefly due to positive loan growth increasing interest on loans
by $1,163,000 or 10.5%, offset by an increase in interest paid on
deposits of $665,000 or 35.0%, principally stemming from the rising
deposit interest rate environment effected by the recent short-term
federal funds rate hikes.

Non-interest income, excluding net investment gains, was $131,000 higher
through the six months ended June 30, 2018 as compared to the six months
ended June 30, 2017. Service charges and fees on deposits and ATM and
debit card income increased in 2018 as compared to the same period in
2017. Gains on sales of mortgage loans decreased by $57,000 in 2018 as
compared to 2017, as more loans are being retained in the loan portfolio.

Non-interest expense increased during the six months ended June 30, 2018
to $11,571,000. The $642,000 increase over the same period in 2017 was
the result of increases in salaries and employee benefits expense due to
the hiring of additional sales staff and the amortization of a new
low-income housing credit partnership for which occupancy began in May

Income tax expense was $579,000 lower for the six months ended June 30,
2018 as compared to the six months ended June 30, 2017 due to major tax
reform legislation, which reduced the Corporation's tax rate from 34% to
21%, effective January 1, 2018. The Corporation recognized $202,000 of
tax credits from low-income housing partnerships in the first six months
of 2018.

Total assets increased to $1,010,597,000 at June 30, 2018, an increase
of $5,173,000 or 0.5% as compared to June 30, 2017, due to improved loan
portfolio growth.

Net loans increased $57,428,000 or 11.0% from June 30, 2017 to June 30,
2018, funded with positive deposit increases of $34,030,000 or 4.9%.
Stockholder's equity decreased $1,187,000 or 1.0% from June 30, 2017 to
June 30, 2018, as a result of a reduction in accumulated other
comprehensive income.

On May 7, 2018 First Keystone Community Bank opened a Loan Production
Office located at 559 Main Street, Suite 114, Bethlehem, Pennsylvania.
This new office focuses on loan origination for both commercial loans
and residential mortgage loans.

Management considers subsequent events occurring after the balance sheet
date for matters which may require adjustment to, or disclosure in, the
consolidated financial statements. The review period for subsequent
events extends up to and including the filing date of a public company's
consolidated financial statements when filed with the Securities and
Exchange Commission ("SEC"). Accordingly, the financial information in
this announcement is subject to change.

First Keystone Community Bank provides innovative business and personal
banking products that focus on "Yesterday's Traditions. Tomorrow's
Vision." The Bank currently operates offices in Columbia (5), Luzerne
(8), Montour (1), Monroe (4), and Northampton (1) counties.

Inquiries regarding the purchase of the Corporation's stock may be made
through the following brokers: RBC Dain Rauscher, 800-223-4207; Janney
Montgomery Scott, Inc., 800-526-6397; Boenning & Scattergood, Inc.,
800-883-1212; and Stifel Nicolaus & Co. Inc., 800-679-5446.

Note: This press release may contain forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995. Actual
results and trends could differ materially from those set forth in such
statements due to various factors. These factors include operating,
legal and regulatory risks, changing economic and competitive conditions
and other risks and uncertainties.

For more information on First Keystone Community Bank or its parent
company, First Keystone Corporation, please contact Elaine A. Woodland
at 570-752-3671.

View Comments and Join the Discussion!
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at