PARENT COMPANY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2025

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,
	2025		2024
ASSETS
Cash	$	3,884	$	4,124
Investment in banking subsidiary		131,313		125,239
Marketable equity securities		1,810		1,587
Prepaid expenses and other assets		697		512
TOTAL ASSETS	$	137,704	$	131,462
LIABILITIES
Receivable from banking subsidiary	$	(595)	$	(547)
Subordinated debentures		25,000		25,000
Accrued expenses and other liabilities		259		258
TOTAL LIABILITIES		24,664		24,711
STOCKHOLDERS’ EQUITY
Common stock		13,007		12,901
Surplus		45,888		45,072
Retained earnings		79,327		80,148
Accumulated other comprehensive loss		(19,473)		(25,661)
Treasury stock, at cost		(5,709)		(5,709)
TOTAL STOCKHOLDERS’ EQUITY		113,040		106,751
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	137,704	$	131,462

STATEMENTS OF INCOME (LOSS)

(Dollars in thousands)

	Years Ended December 31,
	2025		2024
INCOME
Dividends from subsidiary bank	$	7,041	$	1,760
Net securities gains		223		105
Other income		80		79
TOTAL INCOME		7,344		1,944
EXPENSE
Interest on subordinated debt		1,094		1,094
Other expense		256		256
TOTAL EXPENSE		1,350		1,350
INCOME BEFORE INCOME TAX BENEFIT		5,994		594
INCOME TAX BENEFIT		(272)		(251)
		6,266		845
EQUITY IN UNDISTRIBUTED LOSSES OF BANKING SUBSIDIARY		(114)		(14,048)
NET INCOME (LOSS)	$	6,152	$	(13,203)

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Dollars in thousands)

	Years Ended December 31,
	2025		2024
Net Income (Loss)	$	6,152	$	(13,203)
Other comprehensive income (loss):
Equity in other comprehensive income of banking subsidiary		6,177		4,015
Total other comprehensive income		6,177		4,015
Total Comprehensive Income (Loss)	$	12,329	$	(9,188)

STATEMENTS OF CASH FLOWS

(Dollars in thousands)

	Years Ended December 31,
	2025		2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	6,152	$	(13,203)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Gains on securities		(223)		(105)
Deferred income tax (benefit) expense		(2)		27
Equity in undistributed losses of banking subsidiary		114		14,048
Decrease in prepaid/accrued expenses and other assets/liabilities		(182)		(509)
Decrease in advances from banking subsidiary		(48)		(242)
NET CASH PROVIDED BY OPERATING ACTIVITIES		5,811		16
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of equity securities		—		—
NET CASH PROVIDED BY INVESTING ACTIVITIES		—		—
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock		922		1,264
Dividends paid		(6,973)		(6,909)
NET CASH USED IN FINANCING ACTIVITIES		(6,051)		(5,645)
DECREASE IN CASH AND CASH EQUIVALENTS		(240)		(5,629)
CASH AND CASH EQUIVALENTS, BEGINNING		4,124		9,753
CASH AND CASH EQUIVALENTS, ENDING	$	3,884	$	4,124