First Keystone Corporation Q1 2026 Earnings Release

First Keystone Corporation announced its unaudited first quarter 2026 earnings on April 30, 2026. The company reported an increase in total interest income of 5.7% to $1,032,000 compared to the same period in 2025, primarily due to increased interest earned on deposits held at the Federal Reserve. Total interest expense rose by 7.1% to $671,000, largely driven by a $524,000 increase in interest expense related to deposits, particularly retail CDs. Net interest income was negatively impacted by $281,000 due to derivative agreements. The provision for credit losses decreased by $1,141,000 to a credit balance of $390,000, attributed to a $31.6 million decrease in loans and the absence of large charge-offs seen in the prior year. Non-interest income saw a modest increase of 3.1% ($54,000), with a significant improvement in net securities gains/losses. However, non-interest expense increased by 6.1% ($524,000), mainly due to higher salaries, employee benefits, and other operating costs. Net income for the quarter was $1,959,000, a substantial increase of 86.0% ($906,000) compared to Q1 2025, primarily driven by increased interest income. Total assets grew by 6.2% to $1,524,919,000, with deposits increasing by 8.2% to $85,896,000. Stockholders' equity increased by 7.2% to $7,691,000, largely due to an improvement in accumulated other comprehensive loss.