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First Keystone Announces Third Quarter 2024 Earnings (Unaudited)

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First Keystone (OTC Pink: FKYS) reported mixed financial results for Q3 2024. Total interest income increased by $11.6M (28.1%), driven by higher interest rates and commercial real estate loan growth. However, interest expenses rose by $9.8M (50.3%). The company recorded a net loss of $15.5M, primarily due to a $19.1M goodwill impairment charge. Total assets grew 9% to $1.44B, with securities up 22.2% and net loans increasing 6.1%. Deposits rose 2.8% to $27.6M, while stockholders' equity decreased 6.7% due to goodwill impairment and dividend payments.

First Keystone (OTC Pink: FKYS) ha riportato risultati finanziari misti per il terzo trimestre del 2024. Il reddito totale da interessi è aumentato di $11.6M (28.1%), grazie a tassi di interesse più alti e alla crescita dei prestiti immobiliari commerciali. Tuttavia, le spese per interessi sono aumentate di $9.8M (50.3%). L'azienda ha registrato una perdita netta di $15.5M, principalmente a causa di un onere per impairment di avviamento di $19.1M. Gli attivi totali sono cresciuti del 9% a $1.44B, con i titoli aumentati del 22.2% e i prestiti netti in aumento del 6.1%. I depositi sono aumentati del 2.8% a $27.6M, mentre il patrimonio netto degli azionisti è diminuito del 6.7% a causa dell'impairment dell'avviamento e dei pagamenti dei dividendi.

First Keystone (OTC Pink: FKYS) reportó resultados financieros mixtos para el tercer trimestre de 2024. Los ingresos totales por intereses aumentaron en $11.6M (28.1%), impulsados por tasas de interés más altas y el crecimiento de los préstamos inmobiliarios comerciales. Sin embargo, los gastos por intereses se incrementaron en $9.8M (50.3%). La compañía registró una pérdida neta de $15.5M, principalmente debido a un cargo por deterioro de buena voluntad de $19.1M. Los activos totales crecieron un 9% hasta $1.44B, con valores valores aumentados un 22.2% y préstamos netos en aumento del 6.1%. Los depósitos crecieron un 2.8% hasta $27.6M, mientras que el patrimonio neto de los accionistas disminuyó un 6.7% debido al deterioro de buena voluntad y los pagos de dividendos.

퍼스트 키스톤 (OTC Pink: FKYS)은 2024년 3분기 혼합된 재무 결과를 보고했습니다. 총 이자 수익은 $11.6M (28.1%) 증가했으며, 이는 높은 이자율과 상업용 부동산 대출의 증가에 기인합니다. 그러나 이자 비용은 $9.8M (50.3%) 증가했습니다. 회사는 $15.5M의 순손실을 기록했으며, 이는 주로 $19.1M의 영업권 손상 비용 때문입니다. 총 자산은 9% 증가하여 $1.44B에 달했으며, 증권은 22.2% 증가하고 순 대출은 6.1% 증가했습니다. 예금은 2.8% 증가하여 $27.6M에 이르렀고, 주주 자본은 영업권 손상과 배당금 지급으로 인해 6.7% 감소했습니다.

First Keystone (OTC Pink: FKYS) a annoncé des résultats financiers mitigés pour le troisième trimestre de 2024. Les revenus d'intérêts totaux ont augmenté de 11,6 millions de dollars (28,1 %), grâce à des taux d'intérêt plus élevés et à la croissance des prêts immobiliers commerciaux. Cependant, les frais d'intérêt ont augmenté de 9,8 millions de dollars (50,3 %). L'entreprise a enregistré une perte nette de 15,5 millions de dollars, principalement en raison d'une charge de dépréciation du goodwill de 19,1 millions de dollars. Les actifs totaux ont crû de 9 % pour atteindre 1,44 milliard de dollars, avec une augmentation de 22,2 % des titres et une hausse des prêts nets de 6,1 %. Les dépôts ont augmenté de 2,8 % pour atteindre 27,6 millions de dollars, tandis que les capitaux propres des actionnaires ont diminué de 6,7 % en raison de la dépréciation du goodwill et des paiements de dividendes.

First Keystone (OTC Pink: FKYS) hat gemischte finanzielle Ergebnisse für das 3. Quartal 2024 gemeldet. Die gesamten Zinserträge stiegen um $11.6M (28.1%), bedingt durch höhere Zinssätze und das Wachstum von gewerblichen Immobilienkrediten. Die Zinsaufwendungen hingegen stiegen um $9.8M (50.3%). Das Unternehmen verzeichnete einen Nettoverlust von $15.5M, hauptsächlich aufgrund eines Abschreibungsaufwands von $19.1M auf den Goodwill. Die Gesamtsumme der Vermögenswerte wuchs um 9% auf $1.44B, mit einem Anstieg der Wertpapiere um 22.2% und einem Anstieg der Nettokredite um 6.1%. Die Einlagen stiegen um 2.8% auf $27.6M, während das Eigenkapital der Aktionäre aufgrund der Goodwill-Abschreibung und der Dividendenzahlungen um 6.7% zurückging.

Positive
  • Total interest income increased by $11.6M (28.1%)
  • Total assets grew 9% to $1.44B
  • Securities and restricted stocks increased by $75.7M (22.2%)
  • Net loans grew by $53.3M (6.1%)
  • Deposits increased by $27.6M (2.8%)
Negative
  • Net loss of $15.5M for the nine months ended September 30, 2024
  • Goodwill impairment charge of $19.1M
  • Interest expense increased by $9.8M (50.3%)
  • Stockholders' equity decreased by $7.7M (6.7%)
  • Provision for credit losses increased by $1.8M

BERWICK, Pa.--(BUSINESS WIRE)-- First Keystone Corporation (OTC Pink: FKYS), parent company of First Keystone Community Bank, reported an increase in total interest income by $11,586,000 or 28.1%, as compared to the nine months ended September 30, 2023. The increase was predominantly due to increased interest rates, growth in commercial real estate loans, and the purchase of higher yielding securities. Total interest expense increased by $9,752,000 or 50.3% primarily due to a $10,232,000 increase in interest paid to depositors to retain and grow deposit relationships, and increased levels of long-term borrowings and brokered CDs leveraged for a balance sheet strategy. The net effect of the derivatives on net interest income was $1,283,000 for the nine months ended September 30, 2024. The provision for credit losses increased by $1,828,000 as compared to the nine months ended September 30, 2023 due to loan portfolio growth and a large charge-off completed during the third quarter of 2024 related to various loans for a single borrower.

Non-interest income increased by $358,000 or 8.0% for the nine months ended September 30, 2024 as compared to the same period in 2023. Net securities losses decreased $164,000 to $48,000 compared to net securities losses of $212,000 for the nine months ended September 30, 2023. This decrease was due to the Corporation recognizing $48,000 in net losses related to mark-to-market adjustment on held equity securities in 2024 as compared to recognizing $311,000 in net losses related to mark-to-market adjustment on held equity securities and $99,000 in net gains on sales of debt securities in 2023. Other non-interest income increased $131,000 mainly due to a $56,000 increase in retail investment income.

Non-interest expense increased during the nine months ended September 30, 2024 to $42,631,000. The increase from the same period in 2023 was mainly the result of a full, non-cash, goodwill impairment charge of $19,133,000, stemming from goodwill impairment testing due to the decrease in the Corporation’s stock price during the first quarter of 2024 as a triggering event. In addition, salaries and employee benefits increased $943,000 due to an increase in salaries to offer a more competitive wage in our various markets in an effort to increase retention and support the Corporation’s growth, along with higher costs associated with healthcare. The increases in non-interest expense were offset by combined decreases in data processing expense and ATM and debit card expense in the amount of $600,000, mainly due to the implementation of a new vendor relationship for online banking, the application of vendor relationship credits resulting from contract negotiations, and decreased ATM fraud.

Income tax decreased $668,000 during the nine months ended September 30, 2024, as compared to the same period in 2023 due to lower overall operating income and the recognition of more tax credits from low-income housing partnerships upon the completion of a new project.

Net loss for the nine months ended September 30, 2024 was $15,490,000. Net loss per share was $2.52 while dividends totaled $0.84 per share for the nine months ended September 30, 2024. Net income decreased by $19,269,000 as compared to the same period in 2023. The decrease was primarily due to the Corporation recognizing goodwill impairment of $19,133,000 in the first quarter of 2024 as well as increases in interest expense and non-interest expense.

Total Assets increased to $1,438,693,000 at September 30, 2024, an increase of $118,979,000 or 9.0% as compared to September 30, 2023. Securities and restricted stocks increased $75,697,000 or 22.2% and net loans grew $53,288,000 or 6.1% during the nine months ended September 30, 2024 as compared to the same period in 2023. Deposits increased by $27,606,000 or 2.8% at September 30, 2024 as compared to September 30, 2023 due to a $52,664,000 increase in CDs as the Corporation has experienced a shift from transactional deposits to term deposits and a $29,930,000 increase in brokered CDs. These increases were offset by a decrease in other retail deposits of $54,988,000. Stockholders’ equity decreased $7,677,000 or 6.7% principally due to the full goodwill impairment and continued dividends from retained earnings, offset with a net increase in the market value of the securities and derivative portfolios.

Management considers subsequent events occurring after the balance sheet date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company’s consolidated financial statements when filed with the Securities and Exchange Commission (“SEC”). Accordingly, the financial information in this announcement is subject to change.

First Keystone Community Bank provides innovative business and personal banking products that focus on “Yesterday’s Traditions. Tomorrow’s Vision.” The Bank currently operates offices in Columbia (5), Luzerne (8), Montour (1), Monroe (4), and Northampton (1) counties.

Inquiries regarding the purchase of the Corporation’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., 800-883-1212; and Stifel Nicolaus & Co. Inc., 800-679-5446.

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 Community Bank or its parent company, First Keystone Corporation, please contact Elaine A. Woodland at 570-752-3671.

Elaine A. Woodland

570-752-3671

Source: First Keystone Corporation

FAQ

What caused First Keystone's (FKYS) net loss in Q3 2024?

First Keystone's net loss was primarily due to a $19.1M goodwill impairment charge in Q1 2024, along with increases in interest expense and non-interest expense.

How much did First Keystone's (FKYS) total assets grow in Q3 2024?

First Keystone's total assets increased by $119M (9%) to $1.44B compared to September 30, 2023.

What was First Keystone's (FKYS) dividend payment for the nine months ended September 30, 2024?

First Keystone paid dividends totaling $0.84 per share for the nine months ended September 30, 2024.

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FIRST KEYSTONE CORP

OTC:FKYS

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FKYS Stock Data

99.44M
5.52M
11.19%
1.45%
Banks - Regional
Financial Services
Link
United States of America
Berwick