N@N

First Keystone Announces 10.3% Increase in Second Quarter Earnings Per Share

^{Published on 2010-07-30 06:06:17 - Market Wire}
 

BERWICK, Pa.--([ BUSINESS WIRE ])--First Keystone Corporation (OTC BB: FKYS), parent company of First Keystone National Bank, reported net income of $2,313,000 for the quarter ending June 30, 2010, as compared to $2,163,000 for the second quarter of 2009. Earnings per share for the quarter ending June 30, 2010 were $.43, an increase of 10.3% over the $.39 per share earned in the second quarter of 2009. For the six months ending June 30, 2010, net income was $4,500,000 as compared to $4,265,000 for the first six months of 2009. Earnings per share were $.83 for the first six months of 2010, up 6.4% from the $.78 reported in the first six months of 2009. The annualized return on assets and return on equity were 1.11% and 11.54%, respectively for the six months ending June 30, 2010.

"We are pleased with our financial results in the first half of 2010, especially with our continued growth in both net interest income and our net interest margin. In addition, non-interest income increased in both the second quarter of 2010 and for the first six months of 2010."

President J. Gerald Bazewicz reported, aWe are pleased with our financial results in the first half of 2010, especially with our continued growth in both net interest income and our net interest margin. In addition, non-interest income increased in both the second quarter of 2010 and for the first six months of 2010.a

Total assets increased to $801,115,000 as of June 30, 2010, an increase of 9.0% over the same period in 2009. Total deposits and loans increased to $610,065,000 and $417,247,000, respectively as of the end of the second quarter of 2010. In addition, cash dividends paid for the first half of 2010 were $.46 per share, unchanged from the first two quarters of 2009.

First Keystone National Bank, an independently owned community bank since 1864, presently operates 15 full service offices in Columbia (5), Luzerne (5), Monroe (4), and Montour (1) 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 companya™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.