FKYS · First Keystone Corporation

First Keystone Corporation reported a strong first quarter for 2026, with net income surging 86% to $1.959 million, or $0.31 per share, compared to $1.053 million, or $0.17 per share, in the same period last year. The significant earnings growth was primarily driven by a $1.032 million (5.7%) increase in total interest income, largely due to higher balances of interest-bearing deposits held at the Federal Reserve Bank. Total interest expense rose $671,000 (7.1%), mainly from increased retail CD costs, but the net interest income was positively impacted by a lower provision for credit losses, which turned to a credit of $390,000 from an expense of $751,000 in the prior year. This reversal was attributed to a $31.6 million decline in loan balances and the absence of large charge-offs that occurred in Q1 2025. Non-interest income edged up 3.1% to $1.79 million, helped by improved securities gains, while non-interest expense increased 6.1% to $9.1 million, driven by higher salaries, benefits, and technology costs. The balance sheet strengthened, with total assets growing 6.2% to $1.525 billion, supported by an 8.2% increase in deposits, primarily from retail CDs. Stockholders' equity rose 7.2% to $114 million, aided by a reduction in accumulated other comprehensive loss. The company declared dividends of $0.28 per share. Overall, the results reflect improved interest income and credit quality, positioning the bank for continued profitability.