PARENT COMPANY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2023

PARENT COMPANY FINANCIAL INFORMATION

PARENT COMPANY FINANCIAL INFORMATION

NOTE 20 — PARENT COMPANY FINANCIAL INFORMATION

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

BALANCE SHEETS

(Dollars in thousands)

	December 31,
	2023		2022
ASSETS
Cash	$	9,753	$	13,860
Investment in banking subsidiary		135,301		129,456
Marketable equity securities		1,482		1,699
Prepaid expenses and other assets		551		854
TOTAL ASSETS	$	147,087	$	145,869
LIABILITIES
(Receivable) advances from banking subsidiary	$	(307)	$	168
Subordinated Debentures		25,000		25,000
Accrued expenses and other liabilities		779		315
TOTAL LIABILITIES		25,472		25,483
STOCKHOLDERS’ EQUITY
Common stock		12,705		12,502
Surplus		44,004		42,439
Retained earnings		100,260		100,712
Accumulated other comprehensive loss		(29,645)		(29,558)
Treasury stock, at cost		(5,709)		(5,709)
TOTAL STOCKHOLDERS’ EQUITY		121,615		120,386
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	147,087	$	145,869

STATEMENTS OF INCOME

(Dollars in thousands)

	Years Ended December 31,
	2023		2022
INCOME
Dividends from subsidiary bank	$	1,526	$	6,102
Net securities losses		(217)		(93)
Other income		94		98
TOTAL INCOME		1,403		6,107
EXPENSE
Interest on subordinated debt		1,094		1,091
Other expense		217		195
TOTAL EXPENSE		1,311		1,286
INCOME BEFORE INCOME TAX BENEFIT		92		4,821
INCOME TAX BENEFIT		(303)		(275)
		395		5,096
EQUITY IN UNDISTRIBUTED EARNINGS OF BANKING SUBSIDIARY		5,165		8,928
NET INCOME	$	5,560	$	14,024

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Dollars in thousands)

	Years Ended December 31,
	2023		2022
Net Income	$	5,560	$	14,024
Other comprehensive loss:
Equity in other comprehensive loss of banking subsidiary		(87)		(37,146)
Total other comprehensive loss		(87)		(37,146)
Total Comprehensive Income (Loss)	$	5,473	$	(23,122)

STATEMENTS OF CASH FLOWS

(Dollars in thousands)

	Years Ended December 31,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	5,560	$	14,024
Adjustments to reconcile net income to net cash provided by operating activities:
Losses on securities		217		93
Deferred income tax benefit		(88)		(34)
Equity in undistributed earnings of banking subsidiary		(5,165)		(8,928)
Increase in prepaid/accrued expenses and other assets/liabilities		869		47
Decrease in advances from banking subsidiary		(474)		(245)
NET CASH PROVIDED BY OPERATING ACTIVITIES		919		4,957
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of equity securities		—		170
NET CASH PROVIDED BY INVESTING ACTIVITIES		—		170
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock		1,754		1,635
Dividends paid		(6,780)		(6,690)
NET CASH USED IN FINANCING ACTIVITIES		(5,026)		(5,055)
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(4,107)		72
CASH AND CASH EQUIVALENTS, BEGINNING		13,860		13,788
CASH AND CASH EQUIVALENTS, ENDING	$	9,753	$	13,860