First Keystone Reports Growth in Interest Income and Balance Sheet

First Keystone Corporation Reports Strong Financial Growth

First Keystone Corporation (OTC Pink: FKYS), the parent company of First Keystone Community Bank, recently announced its significant fourth-quarter earnings for the fiscal year. The financial statements revealed a notable increase in total interest income, which rose to $14,434,000 or 25.3% compared to the preceding year. This growth is largely attributed to rising interest rates, an upsurge in commercial real estate loans, and investments in higher-yielding securities.

Analysis of Interest Expenses and Gains

However, the increase in total interest expense was also substantial. It surged by $11,271,000 or 40.4%, mainly due to $5,099,000 attributed to interest paid to retain depositor relationships and a further increase resulting in additional costs from long-term borrowings. The derivatives had a net effect on interest income valued at $1,623,000 for the same ending period. In terms of credit losses, First Keystone experienced an increase of $1,857,000 attributable to growth in their loan portfolio and a significant charge-off associated with a large single borrower.

Non-Interest Income Trends

In a positive turn, non-interest income saw an increase of $541,000 or 8.8% year-over-year. This included net securities gains which climbed to $105,000, a significant recovery from the net losses of $118,000 noted in the prior year. The corporation observed improved performance in equity securities and other investment income areas, such as bank-owned life insurance, boosting overall non-interest earnings.

Understanding the Rise in Non-Interest Expenses

On the flip side, non-interest expense surged to $50,584,000, reflecting an increase mainly due to a full non-cash goodwill valuation impairment charge of $19,133,000. This occurred subsequent to the decline in the company’s stock price, which triggered an impairment testing that necessitated this action. Moreover, salaries and benefits also rose by $1,173,000 as First Keystone aimed to remain competitive in wages across various markets, bolstering employee retention efforts.

Impact of Reduction in Tax Liabilities

Interestingly, the company recorded a decrease in income taxes by $729,000. This reduction followed a downward trend in overall operating income and a greater number of tax credits, mainly linked to low-income housing partnerships that became available due to the completion of a new project.

Overview of Financial Results and Future Positioning

In summary, First Keystone reported a net loss for the year amounting to $13,203,000, translating to a loss per share of $2.14. When comparing to the previous year, net income saw a decline of $18,763,000 primarily due to goodwill impairment and increases in both interest and non-interest expenses. While total assets increased slightly to $1,427,759,000, the balance sheet showed varying performances, with net loans and deposits exhibiting positive momentum.

Despite recent challenges, First Keystone has demonstrated commendable resilience and adaptability in its business strategy. The management continuously assesses subsequent events that may require disclosure adjustments in future financial reporting, ensuring compliance with SEC regulations.

Continuing Commitment to Innovative Banking Solutions

First Keystone Community Bank remains steadfast in providing innovative banking solutions centered around the values of tradition and vision. Currently operating multiple branches across several counties, the bank is committed to meeting customer needs with a diverse range of banking products.

For potential investors, inquiries regarding stock purchases can be directed towards various brokers who are available for assistance and guidance, ensuring a seamless investment experience.

Frequently Asked Questions

What was the total interest income of First Keystone Corporation in 2024?

First Keystone Corporation reported a total interest income of $14,434,000, reflecting a 25.3% increase compared to the prior year.

How did the interest expenses change for the company?

Interest expenses surged by $11,271,000 or 40.4%, largely due to factors like interest paid to depositors and additional borrowing costs.

What led to the increase in non-interest income?

The increase of $541,000 or 8.8% in non-interest income was primarily driven by net securities gains and improvements in other investment income components.

What was the net loss reported for the year?

The corporation reported a net loss of $13,203,000 for the fiscal year, resulting in a loss per share of $2.14.

How does First Keystone Community Bank plan to support future growth?

The bank is focused on providing competitive wages and enhancing customer banking experiences while maintaining transparency and compliance in its financial engagements.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

My goal with writing is to simplify difficult financial ideas into understandable, doable guidance. My goal in writing many books and articles is to make personal finance understandable to everyone, irrespective of their experience or background. I want to give readers the information they need to take charge of their financial futures, from investing and retirement planning to budgeting and saving.

Along with my writing, I lead webinars and workshops where I provide doable advice and methods for achieving financial success. To reach a larger audience, I also frequently contribute to financial blogs and publications. My method is always to offer doable, real-world guidance that can actually improve people's lives.

Aside from my job, I like to cook, travel, and experience other cultures. I work hard to apply my belief in the value of a balanced life to my financial counsel. My goal in working is to encourage and enable people to succeed financially so they may lead the best lives possible.

Contact Evelyn Baker privately here. Or send an email with ATTN: Evelyn Baker as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.