BERWICK, Pa.--(BUSINESS WIRE)--
First Keystone Corporation (OTCBB: FKYS), parent company of First
Keystone Community Bank, reported record net income of $8,961,000 or
$1.65 per share for the year ending December 31, 2010, as compared to
$7,937,000 or $1.46 per share in 2009. For the fourth quarter ending
December 31, 2010, net income was $1,971,000 as compared to $1,586,000
for the same period in 2009, an increase of 24.3%.
Earnings for 2010 continue to be impacted by an improving net margin.
Net interest income before the provision for loan losses was $25.41
million in 2010 versus $22.16 million in 2009, a 14.7% increase.
Interest on loans and investments stayed nearly constant, while interest
on deposits and borrowed funds declined by more than $2.8 million, or
18.1%.
The bank made a $2.58 million addition to its loan loss reserve in
recognition of several commercial real estate loans that have
experienced deterioration in their ability to meet debt service
requirements. Management believes that, at its current level, 1.39% of
loans, the loan loss reserve is adequate to meet future problems in the
loan portfolio.
Non-interest income rose by $735,000 after adjusting for the one-time
recovery from the defalcation. That was a 17.1% increase and is due to
increases in Trust Department income and gains on sale of residential
mortgage loans into the secondary market. On the non-interest expense
side, salaries and wages rose due to staff additions and rising health
insurance costs, while FDIC insurance premiums fell.
Cash dividends per share amounted to $.93 for year ending December 31,
2010, an increase of 1.1% from the $.92 paid in 2009. Total assets and
deposits increased to $796,601,000 and $626,895,000 as of December 31,
2010, an increase of 5.0% and 8.0%, respectively. Loans, net of unearned
income, amounted to $409,651,000 as of December 31, 2010.
First Keystone Community Bank, an independently owned community bank
since 1864, presently operates 15 full service offices in Columbia (5),
Luzerne (5), Montour (1), and Monroe (4) Counties providing banking and
trust services.
Inquiries regarding the purchase of the company’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.,
800-883-8383; and Stifel Nicolaus & Co. Inc., 800-223-6807.
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 Matthew P. Prosseda
at 570-752-3671.
Source: First Keystone Corporation
Contact:
First Keystone Corporation
Matthew P. Prosseda, 570-752-3671