PARENT COMPANY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

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,
	2016		2015
ASSETS
Cash	$	7,660	$	5,548
Investment in banking subsidiary		101,033		101,368
Investment securities available-for-sale		1,640		2,007
Prepaid expenses and other assets		12		752
TOTAL ASSETS	$	110,345	$	109,675
LIABILITIES
Advances from banking subsidiary	$	109	$	1,235
Accrued expenses and other liabilities		551		2
TOTAL LIABILITIES		660		1,237
STOCKHOLDERS’ EQUITY
Common stock		11,809		11,707
Surplus		35,047		33,830
Retained earnings		70,004		66,622
Accumulated other comprehensive (loss) income		(1,419)		2,035
Treasury stock, at cost		(5,756)		(5,756)
TOTAL STOCKHOLDERS’ EQUITY		109,685		108,438
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	110,345	$	109,675

STATEMENTS OF INCOME
(Dollars in thousands)	Years Ended December 31,
	2016		2015		2014
INCOME
Dividends from subsidiary bank	$	6,102	$	6,102	$	7,041
Net investment securities gains		368		—		187
Other income		84		79		76
TOTAL INCOME		6,554		6,181		7,304
OPERATING EXPENSES		110		133		136
		6,444		6,048		7,168
INCOME TAX EXPENSE (BENEFIT)		101		(33)		43
		6,343		6,081		7,125
EQUITY IN UNDISTRIBUTED EARNINGS OF BANKING SUBSIDIARY		3,129		3,091		3,086
NET INCOME	$	9,472	$	9,172	$	10,211

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Dollars in thousands)

	Years Ended December 31,
	2016		2015		2014
Net Income	$	9,472	$	9,172	$	10,211
Other comprehensive income (loss):
Unrealized net holding gains (losses) on available-for-sale  investment securities arising during the period, net of income taxes of $156, $(19) and $13, respectively		229		(29)		19
Less reclassification adjustment for net gains included in net income, net of income taxes of $(149), $0 and $(76), respectively		(219)		—		(111)
Less reclassification adjustment for impairment charges on equity securities included in net income, net of income taxes of $0, $5 and $0, respectively		—		9		—
Equity in other comprehensive income (loss) of banking subsidiary		(3,464)		(2,275)		4,476
Total other comprehensive (loss) income		(3,454)		(2,295)		4,384
Total Comprehensive Income (Loss)	$	6,018	$	6,877	$	14,595

STATEMENTS OF CASH FLOWS
(Dollars in thousands)	Years Ended December 31,
	2016		2015		2014
OPERATING ACTIVITIES
Net income	$	9,472	$	9,172	$	10,211
Adjustments to reconcile net income to net cash provided by operating activities:
Gains on sales of investment securities		(368)		—		(187)
Impairment charges on equity securities		—		14		—
Deferred income tax expense		15		63		41
Equity in undistributed earnings of banking subsidiary		(3,129)		(3,091)		(3,086)
Decrease (increase) in prepaid/accrued expenses and other assets/liabilities		1,267		(1,095)		327
(Decrease) Increase in advances from banking subsidiary		(1,126)		1,017		(1,318)
NET CASH PROVIDED BY OPERATING ACTIVITIES		6,131		6,080		5,988
INVESTING ACTIVITIES
Proceeds from sales of investment securities available-for-sale		752		—		512
NET CASH PROVIDED BY INVESTING ACTIVITIES		752		—		512
FINANCING ACTIVITIES
Proceeds from issuance of common stock		1,319		1,252		1,121
Proceeds from issuance of treasury stock		—		37		—
Dividends paid		(6,090)		(6,035)		(5,815)
NET CASH USED IN FINANCING ACTIVITIES		(4,771)		(4,746)		(4,694)
INCREASE IN CASH AND CASH EQUIVALENTS		2,112		1,334		1,806
CASH AND CASH EQUIVALENTS, BEGINNING		5,548		4,214		2,408
CASH AND CASH EQUIVALENTS, ENDING	$	7,660	$	5,548	$	4,214