PARENT COMPANY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2021

PARENT COMPANY FINANCIAL INFORMATION

PARENT COMPANY FINANCIAL INFORMATION

NOTE 19 — PARENT COMPANY FINANCIAL INFORMATION

Condensed financial information for First Keystone Corporation (parent company only) was as follows:

BALANCE SHEETS

(Dollars in thousands)

	December 31,
	2021		2020
ASSETS
Cash	$	13,788	$	14,022
Investment in banking subsidiary		157,675		153,645
Marketable equity securities		1,962		1,646
Prepaid expenses and other assets		894		778
TOTAL ASSETS	$	174,319	$	170,091
LIABILITIES
Advances from banking subsidiary	$	413	$	523
Subordinated Debentures		25,000		25,000
Accrued expenses and other liabilities		351		326
TOTAL LIABILITIES		25,764		25,849
STOCKHOLDERS’ EQUITY
Common stock		12,358		12,231
Surplus		40,940		39,543
Retained earnings		93,378		85,307
Accumulated other comprehensive income		7,588		12,870
Treasury stock, at cost		(5,709)		(5,709)
TOTAL STOCKHOLDERS’ EQUITY		148,555		144,242
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	174,319	$	170,091

STATEMENTS OF INCOME

(Dollars in thousands)

	Years Ended December 31,
	2021		2020
INCOME
Dividends from subsidiary bank	$	6,043	$	6,102
Net securities gains (losses)		323		(287)
Other income		105		89
TOTAL INCOME		6,471		5,904
EXPENSE
Interest on subordinated debt		1,094		64
Other expense		187		181
TOTAL EXPENSE		1,281		245
INCOME BEFORE INCOME TAX BENEFIT		5,190		5,659
INCOME TAX BENEFIT		(186)		(98)
		5,376		5,757
EQUITY IN UNDISTRIBUTED EARNINGS OF BANKING SUBSIDIARY		9,312		6,080
NET INCOME	$	14,688	$	11,837

STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands)

	Years Ended December 31,
	2021		2020
Net Income	$	14,688	$	11,837
Other comprehensive income:
Equity in other comprehensive income of banking subsidiary		(5,282)		8,649
Total other comprehensive income		(5,282)		8,649
Total Comprehensive Income	$	9,406	$	20,486

STATEMENTS OF CASH FLOWS

(Dollars in thousands)

	Years Ended December 31,
	2021		2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	14,688	$	11,837
Adjustments to reconcile net income to net cash provided by operating activities:
(Gains) losses on securities		(323)		287
Deferred income tax expense (benefit)		91		(83)
Equity in undistributed earnings of banking subsidiary		(9,312)		(6,080)
Investment in banking subsidiary		—		(22,500)
Increase in prepaid/accrued expenses and other assets/liabilities		(168)		(563)
(Decrease) increase in advances from banking subsidiary		(110)		141
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		4,866		(16,961)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of equity securities		6		—
NET CASH PROVIDED BY INVESTING ACTIVITIES		6		—
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of subordinated debentures		—		25,000
Proceeds from issuance of common stock		1,511		1,298
Dividends paid		(6,617)		(6,308)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES		(5,106)		19,990
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(234)		3,029
CASH AND CASH EQUIVALENTS, BEGINNING		14,022		10,993
CASH AND CASH EQUIVALENTS, ENDING	$	13,788	$	14,022