BERWICK, Pa.--(BUSINESS WIRE)--
First Keystone Corporation (OTC BB: FKYS), parent company of First
Keystone Community Bank, reported net income of $2,756,000 for the
second quarter and $5,054,000 for the six month period ended June 30,
2014. Return on assets for the six month periods ended June 30, 2014 and
June 30, 2013 was 1.14% and 1.57%. Return on equity was 10.03% and
12.19% for the six month periods ended June 30, 2014 and June 30, 2013.
On a per share basis, for the three months ended June 30, 2014, net
income was $0.50 versus $0.70 in the three months ended June 30, 2013.
Cash dividends amounted to $0.26 per share for the three months ended
June 30, 2014 and 2013. For the six months ended June 30, 2014, net
income was $0.91 versus $1.17 in the first six months of 2013, on a per
share basis. Cash dividends amounted to $0.52 per share in the first six
months of 2014 and 2013.
Net interest income was $6,668,000 for the three month period ended June
30, 2014, up 1.1% compared to the same period last year. Non-interest
income was lower in the second quarter of 2014 due to a reduction in
gains taken on investment securities and lower originations and sales of
secondary market mortgages. Increases in Trust department income and ATM
fees and debit card income offset some of those reductions. For the six
month period ended June 30, 2014, net interest income decreased slightly
to $13,176,000 compared to the same period last year.
Non-interest expense was higher in the second quarter and the six month
period ended June 30, 2014 as salaries and employee benefit expenses and
occupancy expense rose due to the addition of our Dallas and Shickshinny
branches, and the completion of our administration facilities. In
addition, we incurred higher expenses as a result of the planned
outsourcing of our core processing system for data security, disaster
recovery and system efficiency goals.
Net loans increased by $26,043,000, or 6.1% while investment securities
increased by $40,492,000 or 13.1% in the period from June 30, 2013 to
June 30, 2014. Loans grew due to the increases in both commercial and
residential mortgages held in the portfolio.
Deposits increased from $636,633,000 at June 30, 2013 to $642,576,000 or
an increase of 0.9%. Non-interest bearing deposits grew by $12,819,000
or 15.6%. Borrowings increased by $41,415,000 to support the increase in
the loan and investment portfolios.
Stockholders’ equity increased by $4,810,000 to $103,027,000 based on
the retention of earnings and an increase in unrealized gains on our
Management considers subsequent events occurring after the balance sheet
date for matters which may require adjustment to, or disclosure in, the
consolidated financial statements. The review period for subsequent
events extends up to and including the filing date of a public company’s
consolidated financial statements when filed with the Securities and
Exchange Commission (“SEC”). Accordingly, the financial information in
this announcement is subject to change.
First Keystone Community Bank provides innovative business and personal
banking products that focus on “Yesterday’s Traditions. Tomorrow’s
Vision.” First Keystone Community Bank is celebrating its 150th
anniversary being an independently owned community bank since 1864. The
Bank currently operates offices in Columbia (5), Luzerne (8), Montour
(1), and Monroe (4) counties. The newest branch in Shickshinny,
Pennsylvania opened in December 2013.
Inquiries regarding the purchase of the Corporation’s stock may be made
through the following brokers: RBC Dain Rauscher, 800-223-4207; Janney
Montgomery Scott, Inc., 800-526-6397; Boenning & Scattergood, Inc.,
800-883-8383; and Stifel Nicolaus & Co. Inc., 800-223-6807.
Note: This press release may contain forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995. Actual
results and trends could differ materially from those set forth in such
statements due to various factors. These factors include operating,
legal and regulatory risks, changing economic and competitive conditions
and other risks and uncertainties.
For more information on First Keystone Community Bank or its parent
company, First Keystone Corporation, please contact Matthew P. Prosseda
First Keystone Corporation
Matthew P. Prosseda, 570-752-3671
Source: First Keystone Corporation