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  4. [8-K] FIRST KEYSTONE CORP Reports Material Event

First Keystone (OTCID: FKYS) profit jumps 44.6% on higher interest income

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

First Keystone Corporation reported unaudited results for the six months ended June 30, 2026. Net income was $5,736,000, an increase of $1,769,000 or 44.6% compared with the same period in 2025. Net income per share was $0.91, and dividends totaled $0.56 per share. Results reflected higher total interest income, a lower provision for credit losses, higher non-interest income, partially offset by higher interest expense, a negative net effect from derivative agreements, and increased non-interest expense.

Total assets reached $1,574,315,000 at June 30, 2026, up $136,926,000 or 9.5% year over year. Deposits grew $122,632,000 or 11.6%, driven by higher retail CDs and lower other retail deposits and brokered CDs. Loan principal balances declined $9,439,000 to $950,331,000. Stockholders’ equity increased $10,909,000, helped by an $8,146,000 improvement in accumulated other comprehensive loss due to market value gains.

Positive

  • Net income for the six months ended June 30, 2026 was $5,736,000, up 44.6% year over year, driven mainly by higher interest income and a reduced provision for credit losses.

Negative

  • None.

Filing Explained

The company states that the June 30, 2026 financial information is subject to change because its subsequent-event review continues through the filing of its financial statements.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net income $5,736,000 Six months ended June 30, 2026; increased $1,769,000 or 44.6% vs 2025
Net income per share $0.91 Six months ended June 30, 2026
Dividends per share $0.56 Six months ended June 30, 2026
Total assets $1,574,315,000 As of June 30, 2026; up $136,926,000 or 9.5% vs June 30, 2025
Deposit increase $122,632,000 Increase in deposits at June 30, 2026 vs June 30, 2025 (11.6%)
Provision for credit losses $689,000 credit balance Six months ended June 30, 2026; decreased $1,203,000 from prior-year expense of $514,000
Loan principal balance $950,331,000 Loans outstanding at June 30, 2026; down $9,439,000 from $959,770,000 a year earlier
Non-interest income change $401,000 (11.3%) Increase for six months ended June 30, 2026 vs same period 2025
provision for credit losses financial
"The provision for credit losses for the six month period decreased by $1,203,000"
Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.
brokered CDs financial
"Average brokered CD balances were $78,329,000 for the six months ended June 30, 2026"
mark-to-market adjustment financial
"as a result of changes in the mark-to-market adjustment on held equity securities"
A mark-to-market adjustment is an accounting change that updates the value of an asset or liability on a company’s books to what it would sell for at current market prices. Investors care because these adjustments can instantly change reported profits, losses and the company’s financial health — like reappraising a house and seeing your net worth rise or fall overnight — which affects valuation, risk assessment and investment decisions.
accumulated other comprehensive loss financial
"improvement of $8,146,000 in accumulated other comprehensive loss as a result of market value improvement"
Accumulated other comprehensive loss is the running negative total of certain gains and losses that companies record outside their regular profit-and-loss statement, such as changes in the value of some investments, pension adjustments, or currency translation effects. It matters to investors because it reduces shareholders’ equity and reveals economic swings that haven’t affected reported net income yet — like a side ledger showing pending ups and downs that could influence future cash flow or balance-sheet strength.
defalcation loss financial
"a recovery of $49,000 on a prior defalcation loss"
Net income $5,736,000 up $1,769,000 or 44.6% vs six months ended June 30, 2025
Net income per share $0.91 compared with the same period in 2025 (prior-period EPS not stated here)
Total assets $1,574,315,000 up $136,926,000 or 9.5% vs June 30, 2025
Deposits increase of $122,632,000 up 11.6% at June 30, 2026 vs June 30, 2025
Provision for credit losses $689,000 credit balance decreased $1,203,000 from an expense of $514,000 in 2025
Non-interest income increase of $401,000 up 11.3% vs six months ended June 30, 2025
Non-interest expense increase of $701,000 up 4.1% vs six months ended June 30, 2025

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FAQ

How did First Keystone (FKYS) net income change for the first half of 2026?
First Keystone (FKYS) net income rose to $5,736,000 for the six months ended June 30, 2026. This was an increase of $1,769,000, or 44.6%, compared with the same period in 2025, primarily reflecting higher interest income and a lower provision for credit losses.

What were First Keystone (FKYS) earnings per share and dividends in early 2026?
For the six months ended June 30, 2026, First Keystone (FKYS) reported net income per share of $0.91 and paid dividends totaling $0.56 per share. These figures show earnings coverage of the dividend while the company’s profitability increased versus the prior-year period.

How did interest income and expense change for First Keystone (FKYS) in 2026?
Total interest income for First Keystone (FKYS) increased $2,124,000, or 5.7%, versus the first half of 2025, mainly from higher interest-bearing deposits at the Federal Reserve. Total interest expense rose $952,000, or 5.1%, largely due to higher costs on retail certificates of deposit.

What happened to First Keystone (FKYS) provision for credit losses?
The provision for credit losses for First Keystone (FKYS) shifted to a $689,000 credit for the six months ended June 30, 2026. This represented a $1,203,000 decrease compared with an expense of $514,000 in 2025, influenced by lower loan balances and prior charge-offs.

How did First Keystone (FKYS) assets and deposits change by June 30, 2026?
At June 30, 2026, First Keystone (FKYS) total assets were $1,574,315,000, up $136,926,000 or 9.5% year over year. Deposits increased $122,632,000, or 11.6%, driven by growth in retail certificates of deposit, partly offset by declines in other retail deposits and brokered CDs.

How did non-interest income and expense change for First Keystone (FKYS)?
Non-interest income at First Keystone (FKYS) increased $401,000, or 11.3%, helped by higher securities gains and insurance-related income. Non-interest expense rose $701,000, or 4.1%, mainly from higher salaries, technology and equipment costs, professional services, and data processing fees.
PA0000737875false00007378752026-07-302026-07-30

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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FORM 8-K

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CURRENT REPORT

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PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

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Date of Report (Date of earliest reported): July 30, 2026

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FIRST KEYSTONE CORPORATION

(Exact name of registrant as specified in its Charter)

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PENNSYLVANIA

000-21344

23-2249083

(State or other jurisdiction

(Commission

(IRS Employer

of incorporation)

File Number)

Identification No.

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111 West Front Street, Berwick, Pennsylvania

18603

(Address of principal executive offices)

(Zip Code)

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Registrant's telephone number, including area code: (570) 752-3671

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

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☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

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☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

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☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

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☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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Emerging growth company ☐

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If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Securities registered pursuant to Section 12(b) of the Act:

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Title of each class

Trading symbol

Name of each exchange on which registered

Common Stock

FKYS

OTCID

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ITEM 2.02.    RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 30, 2026, First Keystone Corporation, parent company of First Keystone Community Bank, announced its unaudited earnings for the period ending June 30, 2026. The press release announcing second quarter earnings is filed as Exhibit 99.1 and incorporated herein by reference.

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ITEM 9.01.    FINANCIAL STATEMENTS AND EXHIBITS

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(a)    Not applicable

(b)    Not applicable

(c)    Not applicable

(d)    Exhibits

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Exhibit No.

Description

99.1

Press Release of First Keystone Corporation dated July 30, 2026.

104

Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document).

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Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, there unto duly authorized.

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FIRST KEYSTONE CORPORATION

 

(Registrant)

 

 

 

By:

/s/ Jack W. Jones

 

Jack W. Jones

 

President and CEO

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Date: July 30, 2026

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Exhibit 99.1

FIRST KEYSTONE ANNOUNCES

SECOND QUARTER 2026 EARNINGS (UNAUDITED)

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Berwick, Pennsylvania – July 30, 2026 - First Keystone Corporation (OTCID: FKYS), parent company of First Keystone Community Bank, reported an increase in total interest income of $2,124,000 or 5.7%, as compared to the six months ended June 30, 2025. The increase was predominantly due to interest earned on increased balances of interest-bearing deposits held at the Federal Reserve Bank compared to the same period in 2025. Total interest expense increased by $952,000 or 5.1% overall, mainly due to an increase of $598,000 in interest expense related to deposits. The increased deposit interest for the six months ended June 30, 2026 is mainly due to an increase of $1,961,000 in expense related to retail CDs, offset by a decrease of $784,000 in expense related to other retail deposits and a decrease of $579,000 in expense related to brokered CDs. Average retail CD balances have increased $116,059,000 at June 30, 2026 vs. June 30, 2025, while average other interest-bearing retail deposit account balances decreased by $3,184,000 overall during the six month period. Average brokered CD balances were $78,329,000 for the six months ended June 30, 2026 vs. $99,871,000 for the six months ended June 30, 2025. The net effect of derivative agreements decreased net interest income by $555,000 for the six months ended June 30, 2026 and increased net interest income by $346,000 for the six months ended June 30, 2025. These derivative agreements are part of the Corporation’s interest rate risk management strategy and are intended to mitigate exposure to changes in market interest rates. The provision for credit losses for the six month period decreased by $1,203,000 to a credit balance of $689,000 for the six months ended June 30, 2026 compared to expense of $514,000 for the six months ended June 30, 2025. The decrease in the provision for credit losses was mainly the result of a decrease of $9,439,000 in the principal balance of loans from $959,770,000 at June 30, 2025 to $950,331,000 at June 30, 2026. There were also two larger charge-offs completed during the first six months of 2025 which impacted the balance of the provision for credit losses for the six months ended June 30, 2025.

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Non-interest income increased by $401,000 or 11.3% for the six months ended June 30, 2026 as compared to the same period in 2025. Net securities gains improved by $529,000 to a gain of $548,000 compared to a gain of $19,000 as a result of changes in the mark-to-market adjustment on held equity securities. Other non-interest income decreased $161,000 mainly due to $255,000 in gains from life insurance proceeds realized from a death benefit received during the first six months of 2025, offset by a recovery of $49,000 on a prior defalcation loss, an increase of $24,000 in income related to bank owned life insurance and an increase of $24,000 in ATM and debit card fees.

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Non-interest expense increased by $701,000 or 4.1% for the six months ended June 30, 2026 as compared to the same period in 2025. The increase was mainly due to a $262,000 increase in salaries and employee benefits, a $254,000 increase in furniture, equipment and computers expense, a $152,000 increase in professional services expense, an increase of $71,000 in data processing fees, an increase of $56,000 in ATM and debit card fees, and an increase of $30,000 in FDIC insurance, offset by a decrease of $307,000 in other non-interest expense related to a fraud write off associated with a customer account realized in the first quarter of 2025.

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Net income for the six months ended June 30, 2026 was $5,736,000. Net income per share was $0.91 while dividends totaled $0.56 per share for the six months ended June 30, 2026. Net income increased by $1,769,000 or 44.6% as compared to the same period in 2025. The increase was primarily due to increased interest income.

Total Assets increased to $1,574,315,000 at June 30, 2026, an increase of $136,926,000 or 9.5% as compared to June 30, 2025. Securities and restricted stocks increased $1,530,000 or 0.4% as compared to June 30, 2025. Deposits increased by $122,632,000 or 11.6% at June 30, 2026 as compared to June 30, 2025 due to increases in retail CDs offset with decreases in other retail deposits and brokered CDs as discussed above. Stockholders’ equity increased $10,909,000 or 10.1% mainly due to an improvement of $8,146,000 in accumulated other comprehensive loss as a result of market value improvement.

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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.

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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.

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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.

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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.

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For more information on First Keystone Community Bank or its parent company, First Keystone Corporation, please contact Jack W. Jones at 570-752-3671.

Source: View Original Filing on SEC EDGAR

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