BERWICK, Pa.--(BUSINESS WIRE)--
First Keystone Corporation (OTC Pink: FKYS), parent company of First
Keystone Community Bank, reported net income of $2,144,000 for the three
months ended September 30, 2016, as compared to $2,485,000 for the same
period in 2015. Earnings per share for the third quarter ended September
30, 2016 were $0.38 versus $0.44 for the third quarter of 2015.
Dividends paid were $0.27 per share for the three months ended September
30, 2016 and 2015.
Net interest income for the third quarter of 2016 was $6,617,000, a
decrease of $14,000 from the third quarter of 2015. For the nine months
ended September 30, 2016, net interest income was down by $53,000 to
$19,923,000 as compared to the same period in 2015.
The provision for loan losses increased in the third quarter of 2016 due
to a charge-off made in relation to a large commercial real estate loan.
The provision totaled $1,133,000 for the three months ended September
30, 2016.
Non-interest income before net investment securities gains and gain from
life insurance proceeds declined by $274,000 for the nine months ended
September 30, 2016 because of declines in gains on sales of mortgage
loans and retail investment income. Increases were recorded in service
charges and fees and ATM and debit card income.
Non-interest expense declined during the third quarter and year-to-date
periods ended September 30, 2016, as compared to the same periods in
2015. Salary and employee benefits expense declined as the Bank
continued to reduce labor costs throughout the organization.
Hospitalization expense also declined.
While net loans and investment securities available for sale declined as
of September 30, 2016 as compared with the same period last year,
average balances through the first nine months of the year increased in
both cases. Net loans decreased as a result of several large loan
payoffs through September 30, 2016; however, the loan pipeline is
strong. Investment securities available for sale have increased in the
fourth quarter as a result of planned purchases.
Total deposits increased as of September 30, 2016 compared to September
30, 2015 by $28,332,000, or 3.9%, due in part to increases in municipal
deposits. Non-interest bearing deposits rose by $11,382,000, or 10.6%.
Stockholders’ equity stood at $116,402,000 at September 30, 2016, an
increase of 6.7% over September 30, 2015. Total assets remained
relatively flat as a result of the period end decreases in net loans and
investment securities available for sale.
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), and Monroe (4) 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.,
800-883-8383; 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161101006033/en/
First Keystone Corporation
Matthew P. Prosseda, 570-752-3671
Source: First Keystone Corporation