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First Keystone Announces Record 2008 Earnings

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  Published in Business and Finance on Friday, January 30th 2009 at 8:24 GMT, Last Modified on 2009-01-30 08:25:36 by Market Wire
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BERWICK, Pa.--([ BUSINESS WIRE ])--First Keystone Corporation (OTC BB: FKYS), parent company of First Keystone National Bank, reported record net income of $7,551,000 or $1.39 per share for the year ending December 31, 2008, as compared to $6,127,000 or $1.31 per share in 2007. For the fourth quarter ending December 31, 2008, net income was $1,716,000 as compared to $1,768,000 for the same period in 2007, a decrease of 2.9%.

Earnings were positively impacted by an improving net margin in 2008. An increase in the provision for loan losses and a loss in investment securities, resulting from an impairment charge on the equity securities portfolio, account for the decline in fourth quarter 2008 earnings. Overall asset quality remains strong with non performing assets to total assets of 0.25% and an allowance for loan losses at 1.27% of total loans.

Cash dividends per share amounted to $.89 for year ending December 31, 2008, an increase of 1.1% from the $.88 paid in 2007. Return on assets and return on equity were 1.08% and 10.78%, respectively, for the year ending December 31, 2008. Total assets and deposits increased to $714,898,000 and $504,633,000 as of December 31, 2008. Loans, net of unearned income, increased 8.4% to $408,367,000 as of December 31, 2008.

First Keystone National Bank, an independently owned community bank since 1864, presently operates 14 full service offices in Columbia (5), Luzerne (4), Montour (1), and Monroe (4) Counties providing banking and trust services. In Monroe County, the Bank trades as Pocono Community Bank, a division of First Keystone National Bank.

Inquiries regarding the purchase of the company'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 National Bank or its parent company, First Keystone Corporation, please contact J. Gerald Bazewicz at 570-752-3671, extension 1172.