8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest reported): October 29, 2021

FIRST KEYSTONE CORPORATION

(Exact name of registrant as specified in its Charter)

PENNSYLVANIA	000-21344	23-2249083
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.

111 West Front Street, Berwick, Pennsylvania	18603
(Address of principal executive offices)	(Zip Code)

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

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):

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

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

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

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

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).

Emerging growth company ☐

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. ☐

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

Title of each class	Trading symbol	Name of each exchange on which registered
Common stock	FKYS	OTC: Pink

ITEM 2.02.    RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On October 29, 2021, First Keystone Corporation, parent company of First Keystone Community Bank, announced its unaudited earnings for the period ending September 30, 2021. The press release announcing third quarter earnings is filed as Exhibit 99.1 and incorporated herein by reference.

ITEM 9.01.    FINANCIAL STATEMENTS AND EXHIBITS

(a)    Not applicable

(b)    Not applicable

(c)    Not applicable

(d)    Exhibits

Exhibit No.	Description
99.1	Press Release of First Keystone Corporation dated October 29, 2021.
104	Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document).

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.

FIRST KEYSTONE CORPORATION
(Registrant)
By:	/s/ Elaine A. Woodland
Elaine A. Woodland
President and CEO
Date:	October 29, 2021

EX-99.1

Exhibit 99.1

FIRST KEYSTONE ANNOUNCES

THIRD QUARTER 2021 EARNINGS (UNAUDITED)

Berwick, Pennsylvania – October 29, 2021 First Keystone Corporation (OTC Pink: FKYS), parent company of First Keystone Community Bank, reported net income for the three and nine months ended September 30, 2021 of $4,023,000 and $11,506,000, respectively. Net income per share was $0.68 and $1.95 while dividends totaled $0.28 and $0.83 per share, respectively, for the three and nine months ended September 30, 2021. Net income for the nine months ended September 30, 2021 increased by $2,935,000 or 34.2% as compared to the same period in 2020. The increase was primarily due to increases in net interest income, mainly due to an increase in interest and fees on loans, increased income on securities and a decline in interest paid on deposits.

Total interest income increased by $1,999,000 or 6.8% as compared to the nine months ended September 30, 2020. The increase was chiefly due to a $1,144,000 increase in interest earned on Commercial Real Estate loans and a $860,000 increase in SBA fees. Total interest expense decreased by $1,260,000 or 24.5% primarily due to a $1,670,000 decrease in interest paid on deposits due to decreased interest rates in the latter part of 2020.

Non-interest income, excluding net securities gains, increased by $841,000 or 19.0% for the nine months ended September 30, 2021 as compared to the same period in 2020. Trust Department income increased $84,000 for the nine months ended September 30, 2021 due to new account openings and higher fees earned on certain types of accounts due to increased market values. Net securities gains for the nine months ended September 30, 2021 of $165,000 were realized due to gains on market value fluctuations on marketable equity securities held in the Corporation’s portfolio. Other income increased $655,000 for the nine months ended September 30, 2021. The largest contributors to the increase in other income included a $275,000 increase in ATM and debit card income due to increased transaction volume and a $330,000 increase in gains on sales of mortgage loans mainly due to a higher volume of loans sold.

Non-interest expense increased during the nine months ended September 30, 2021 to $19,011,000. The $1,185,000, or 6.7%, increase from the same period in 2020 was the result of a $332,000 increase in salaries and employee benefits, mainly due to an increase in employee profit sharing, training and salaries expense. Pennsylvania shares tax increased $255,000 due to an increase in total Bank equity. There was also a $216,000 increase in FDIC insurance expense due to small bank assessment credits being fully utilized in the prior year, coupled with growth in assets. The increases in non-interest expense were offset by decreases in occupancy expense and expenses associated with foreclosed assets held for resale in the combined amount of $147,000.

Income tax expense increased $684,000 during the nine months ended September 30, 2021, as compared to the same period in 2020, due to higher overall operating income. The Corporation recognized $303,000 of tax credits from low-income housing partnerships in the first nine months of 2021 and 2020.

Total assets increased to $1,389,939,000 at September 30, 2021, an increase of $255,204,000 or 22.5% as compared to September 30, 2020, due to an increase in debt securities and growth in net loans. Cash and cash equivalents increased $86,072,000 as of September 30, 2021, due to increased deposits.

Securities and restricted stocks increased $116,782,000 or 36.5% and net loans increased $52,036,000 or 7.5%. Deposits increased $226,285,000 or 24.6% at September 30, 2021 as compared to September 30, 2020, mainly due to stimulus programs. Stockholders’ equity increased $7,319,000 or 5.2% principally due to an increase in retained earnings.

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.

XML

Document and Entity Information	Oct. 29, 2021
Document and Entity Information
Entity Registrant Name	FIRST KEYSTONE CORPORATION
Document Type	8-K
Entity File Number	000-21344
Entity Tax Identification Number	23-2249083
Document Period End Date	Oct. 29, 2021
Entity Address, Address Line One	111 West Front Street
Entity Address, City or Town	Berwick
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	18603
City Area Code	570
Local Phone Number	752-3671
Written Communications	false
Soliciting Material	false
Pre-commencement Issuer Tender Offer	false
Pre-commencement Tender Offer	false
Amendment Flag	false
Title of 12(b) Security	Common stock
Trading Symbol	FKYS
Entity Incorporation, State or Country Code	PA
Entity Emerging Growth Company	false
Entity Central Index Key	0000737875