On January 31, 2025, First Keystone Corp (FKYS, Financial) released its 8-K filing, detailing the financial results for the fourth quarter of 2024. The bank holding company, based in the United States, operates through its wholly-owned subsidiary, First Keystone Community Bank, offering a comprehensive range of banking services in Northeastern Pennsylvania.
Performance and Challenges
First Keystone Corp (FKYS, Financial) reported a significant increase in total interest income by $14,434,000 or 25.3% compared to the previous year, driven by higher interest rates, growth in commercial real estate loans, and the acquisition of higher-yielding securities. However, total interest expense also rose sharply by $11,271,000 or 40.4%, primarily due to increased interest paid to depositors and higher levels of long-term borrowings and brokered CDs. This increase in expenses highlights the challenges faced by the corporation in managing its balance sheet strategy effectively.
Financial Achievements
Despite the challenges, First Keystone Corp (FKYS, Financial) achieved a notable increase in non-interest income by $541,000 or 8.8%, with net securities gains rising by $223,000. This improvement was largely due to recognizing net gains related to mark-to-market adjustments on held equity securities. Such achievements are crucial for banks as they diversify income streams beyond traditional interest income.
Key Financial Metrics
The corporation's net loss for the year ended December 31, 2024, was $13,203,000, translating to a net loss per share of $2.14. This represents a decrease in net income by $18,763,000 compared to the previous year, primarily due to a goodwill impairment charge of $19,133,000 and increased expenses. Total assets increased slightly to $1,427,759,000, marking a 0.8% rise from the previous year. Deposits saw a significant increase of $65,441,000 or 6.7%, driven by a shift from transactional to term deposits.
| Metric | 2024 | 2023 |
|---|---|---|
| Total Interest Income | $14,434,000 | - |
| Total Interest Expense | $11,271,000 | - |
| Net Loss | $13,203,000 | - |
| Net Loss Per Share | $2.14 | - |
| Total Assets | $1,427,759,000 | - |
| Deposits | $65,441,000 | - |
Analysis and Conclusion
First Keystone Corp (FKYS, Financial) faced a challenging year with a substantial net loss driven by goodwill impairment and rising expenses. However, the increase in interest income and non-interest income reflects the corporation's efforts to leverage market conditions and diversify its revenue streams. The growth in deposits indicates a strategic shift towards more stable funding sources, which is crucial for long-term sustainability in the banking sector. As the corporation navigates these challenges, its ability to manage expenses and capitalize on income opportunities will be key to improving financial performance in the future.
Explore the complete 8-K earnings release (here) from First Keystone Corp for further details.
