RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2016

NOTE 14 — RELATED PARTY TRANSACTIONS

Certain directors and executive officers of First Keystone Corporation and its subsidiary and companies in which they are principal owners (i.e., at least 10% ownership) were indebted to the Corporation at December 31, 2016 and 2015. The loans do not involve more than the normal risk of collectability nor present other unfavorable features.

A summary of the activity on the related party loans, comprised of directors and executive officers and their related companies consists of the following:

(Dollars in thousands)
	2016		2015
Balance at January 1	$	3,678	$	3,658
Additions		701		2,096
Deductions		(2,220)		(2,076)
Balance at December 31	$	2,159	$	3,678

The above loans represent funds drawn and outstanding at the date of the consolidated financial statements. Commitments by the Bank to related parties on lines of credit and letters of credit for 2016 and 2015, presented an additional off-balance sheet risk to the extent of undisbursed funds in the amounts of $7,907,000 and $4,993,000 respectively, on the above loans.

Deposits from certain officers and directors and/or their related companies held by the Bank amounted to $9,005,000 and $10,415,000 at December 31, 2016 and 2015, respectively.