8-K - FKYS - Equibles

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest reported): October 30, 2020

<br><br>
FIRST KEYSTONE CORPORATION<br><br>(Exact name of registrant as specified in its Charter)

PENNSYLVANIA	000-21344	23-2249083
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.

111 West Front Street, Berwick, Pennsylvania	18603
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (570) 752-3671

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Name of each exchange on which registered
Common stock	FKYS	OTC: Pink

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On October 30, 2020, First Keystone Corporation, parent company of First Keystone Community Bank, announced its unaudited earnings for the period ending September 30, 2020. The press release announcing third quarter earnings is filed as Exhibit 99.1 and incorporated herein by reference.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

(a) Not applicable

(b) Not applicable

(d) Exhibits

Exhibit No.	Description
99.1	Press Release of First Keystone Corporation dated October 30, 2020.
104	Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document).

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, there unto duly authorized.

	FIRST KEYSTONE CORPORATION
	(Registrant)
	By:	/s/ Elaine A. Woodland
	Elaine A. Woodland
	President and CEO

	Date:	October 30, 2020

Exhibit 99.1

FIRST KEYSTONE ANNOUNCES

THIRD QUARTER 2020 EARNINGS (UNAUDITED)

Berwick, Pennsylvania –October 30, 2020 - First Keystone Corporation (OTC Pink: FKYS), parent company of First Keystone Community Bank, reported net income for the three and nine months ended September 30, 2020 was $3,137,000 and $8,571,000, respectively. Net income per share was $0.54 and $1.47 while dividends totaled $0.27 and $0.81 per share, respectively, for the three and nine months ended September 30, 2020. Net income for the nine months ended September 30, 2020 increased by $875,000 or 11.4% as compared to the same period in 2019. The increase was primarily driven by increased loan growth, $255,000 in SBA loan fees, and lower short-term rates paid on liabilities.

Total interest income increased by $530,000 or 1.9% as compared to the nine months ended September 30, 2019. The increase was chiefly due to positive loan growth, primarily in the Commercial Real Estate portfolio, which increased interest and fees on loans by $1,512,000 or 6.9%. Total interest expense decreased by $2,743,000 or 34.8% primarily due to a $2,120,000 decrease in interest paid on short-term borrowings, stemming from less reliance on borrowings replaced with deposit growth and lower short-term interest rates.

Non-interest income, excluding net securities gains, was $81,000 or 1.8% lower for the nine months ended September 30, 2020 as compared to the same period in 2019. Service charges and fees on deposits decreased by $426,000, mainly due to several deposit related fees waived during the Covid-19 pandemic. This was offset by an increase in ATM and debit card income of $141,000 for the nine months ended September 30, 2020 as compared to the nine months ended September 30, 2019. Gains on sales of mortgage loans increased by $269,000 for the nine months ended September 30, 2020. Net securities losses for the nine months ended September 30, 2020 of $312,000 were realized mainly due to $540,000 in losses on market value fluctuations on marketable equity securities held in the Corporation’s portfolio, offset by $228,000 in net gains on the sales of securities.

Non-interest expense increased during the nine months ended September 30, 2020 to $17,826,000. The $457,000 increase from 2019 was the result of increases in salaries and employee benefits, mainly due to an increase in commissions associated with loan growth, as well as an increase in occupancy expense due to increased rent expenses resulting from the new lease accounting standard. The increases in non-interest expense are offset by a decrease in expenses associated with advertising in the amount of $231,000.

Income tax expense increased $342,000 during the nine months ended September 30, 2020, as compared to the same period in 2019, due to less income from investments in and loans to, tax-exempt state and local government entities. The Corporation recognized $303,000 of tax credits from low-income housing partnerships in the first nine months of 2020 and 2019.

Total assets increased to $1,134,735,000 at September 30, 2020, an increase of $114,741,000 or 11.2% as compared to September 30, 2019, due to growth in net loans.

Net loans increased $72,196,000 or 11.6%, while deposits increased $178,241,000 or 24.1% at September 30, 2020 as compared to September 30, 2019. Stockholders’ equity increased $12,529,000 or 9.8% principally due to increases in accumulated other comprehensive income and retained earnings.

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.” The Bank currently operates offices in Columbia (5), Luzerne (8), Montour (1), Monroe (4), and Northampton (1) counties.

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., 800-883-1212; and Stifel Nicolaus & Co. Inc., 800-679-5446.

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 Elaine A. Woodland at 570-752-3671.