First Keystone Announces Third Quarter 2025 Earnings (Unaudited)
MWN-AI** Summary
First Keystone Corporation (OTC: FKYS), the parent company of First Keystone Community Bank, reported its unaudited earnings for the third quarter of 2025, showcasing notable financial growth compared to the previous year. Interest income surged by $4,073,000, a 7.7% increase, largely attributed to an uptick in commercial real estate loans. Conversely, total interest expense decreased slightly by $76,000, primarily due to reduced short-term borrowings, despite an increase in deposit-related expenses driven by brokered certificates of deposit (CDs).
The corporation's net interest income benefitted from derivative agreements, improving by $586,000 for the first nine months of 2025. A significant decrease of $723,000 in the provision for credit losses was recorded, reflecting slower loan growth and reduced qualitative loss factors.
Non-interest income also saw an upswing, increasing by $638,000 or 13.2%. The corporation recorded a net gain in securities, reversing previous losses from the same period last year. Notably, life insurance proceeds contributed $255,000 to this growth, along with rises in ATM and debit card fees.
On the expenditure side, non-interest expenses declined primarily due to a substantial goodwill impairment charge taken in the first quarter of 2024, although there were mitigative expenses for fraud write-offs and increases in equipment and FDIC insurance costs. The income tax expense rose by $964,000 due to improved operating income.
The net income for the first nine months of 2025 reached $6,775,000, translating to earnings of $1.09 per share. The total assets increased to $1,582,377,000, marking a 10% rise, with a significant influx in deposits—up 16.9% compared to the prior year. The bank continues to focus on delivering personalized banking services while navigating the evolving financial landscape.
MWN-AI** Analysis
First Keystone Corporation (OTC: FKYS) has demonstrated a strong performance in its third-quarter earnings report for 2025, exhibiting a significant uptick in interest income driven primarily by an increase in commercial real estate loans. The reported interest income rose by 7.7% year-over-year, signaling robust activity in this sector. Additionally, a marginal decrease in total interest expenses showcases effective management of short-term borrowings, balancing the pressure from rising deposit interest expenses.
The provision for credit losses also saw a positive trend, decreasing by $723,000, indicating improved asset quality amid slower loan growth. This trend, combined with a notable 13.2% rise in non-interest income, reflects a diversified revenue stream and strategic asset management, essential in today's economic climate.
Investors should note the substantial increase in total assets and deposits, with total assets rising to $1.58 billion—a 10% increase. This growth, particularly in retail CDs and brokered deposits, indicates that the bank is successfully attracting deposits, which is vital for funding its lending activities.
While the income tax expense surged due to improved operating income, the net income increased dramatically, underscoring the corporation's recovery from the goodwill impairment experienced last year. The company’s consistent dividends of $0.84 per share, in conjunction with a solid net income per share of $1.09, present a compelling case for income-oriented investors.
In light of these positive indicators, First Keystone Corporation presents a promising investment opportunity, particularly for those focused on institutions exhibiting solid fundamentals and steady growth trajectories. However, potential investors should remain vigilant regarding external economic risks and regulatory changes that may impact future performance. As always, performing due diligence and considering market conditions prior to investment is advised.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
First Keystone Corporation (OTC: FKYS), parent company of First Keystone Community Bank, reported an increase in interest income by $4,073,000 or 7.7%, as compared to the nine months ended September 30, 2024. The increase was predominantly due to growth in commercial real estate loans. Total interest expense decreased by $76,000 or 0.3% overall. Decreased levels of short-term borrowings resulted in a decrease of $1,759,000 in interest expense which was offset by an increase of $1,683,000 in interest expense related to deposits. The increased deposit interest for the nine months ended September 30, 2025 is mainly due to an increase of $1,239,000 in expense related to brokered CDs for which balances have increased $64,106,000 at September 30, 2025 versus September 30, 2024. The net effect of derivative agreements increased net interest income by $586,000 for the nine months ended September 30, 2025 and $1,283,000 for the nine months ended September 30, 2024. The provision for credit losses decreased by $723,000 as compared to the nine months ended September 30, 2024 mainly due to slower loan growth and a reduction to qualitative loss factors.
Non-interest income increased by $638,000 or 13.2% for the nine months ended September 30, 2025 as compared to the same period in 2024. Net securities gains/losses improved by $176,000 to a gain of $128,000 compared to net securities losses of $48,000 for the nine months ended September 30, 2024 as a result of changes in the mark-to-market adjustment on held equity securities. Other non-interest income increased $330,000 mainly due to $255,000 in gains from life insurance proceeds realized during the first half of 2025, a $40,000 increase in ATM and debit card fee income, and a $29,000 increase in gains on sales of mortgage loans.
Non-interest expense decreased during the nine months ended September 30, 2025 to $24,912,000. The decrease from the same period in 2024 was mainly the result of a full, non-cash, goodwill valuation impairment charge of $19,133,000 completed during the first quarter of 2024 from impairment testing performed as a result of the decrease in the Corporation’s stock price as a triggering event. This decrease was offset by $307,000 in other non-interest expense related to a fraud write off associated with a customer account in the first quarter of 2025, a combined $352,000 increase in furniture, equipment and computers expense related to the replacement of the bank’s ATM fleet, and a $239,000 increase in FDIC insurance expenses.
Income tax expense increased $964,000 during the nine months ended September 30, 2025, as compared to the same period in 2024 due to higher overall operating income.
Net income for the nine months ended September 30, 2025 was $6,775,000. Net income per share was $1.09 while dividends totaled $0.84 per share for the nine months ended September 30, 2025. Net income increased by $22,265,000 as compared to the same period in 2024. The increase was primarily due to the Corporation recognizing goodwill impairment of $19,133,000 in the first quarter of 2024.
Total Assets increased to $1,582,377,000 at September 30, 2025, an increase of $143,684,000 or 10.0% as compared to September 30, 2024. Securities and restricted stocks increased $1,149,000 and loans grew $23,134,000 as compared to September 30, 2024. Deposits increased by $172,585,000 or 16.9% at September 30, 2025 as compared to September 30, 2024. Retail CDs increased by $118,769,000 and other retail deposits decreased by $12,751,000, as the Corporation has experienced a shift from transactional deposits to term deposits. Brokered CDs increased by $64,106,000. Stockholders’ equity increased $4,908,000 or 4.6% mainly due to an improvement of $1,944,000 in accumulated other comprehensive loss and a $2,099,000 increase in retained earnings.
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; 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 Jack W. Jones at 570-752-3671.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251031806873/en/
First Keystone Corporation
Jack W. Jones
570-752-3671
FAQ**
How does the growth in commercial real estate loans contribute to the overall financial performance of First Keystone Corp. FKYS in terms of interest income compared to previous periods?
What strategies is First Keystone Corp. FKYS implementing to manage the increase in interest expense related to deposits, especially with the rise in brokered CDs?
Considering the provision for credit losses decreased, what specific qualitative loss factors did First Keystone Corp. FKYS adjust, and how might this impact future loan growth?
How does the increase in non-interest income, particularly from life insurance proceeds and ATM fees, affect the overall profitability and growth strategy of First Keystone Corp. FKYS moving forward?
**MWN-AI FAQ is based on asking OpenAI questions about First Keystone Corp. (OTC: FKYS).
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