First Keystone Corporation Reports $1.05 Million Net Income in Q1 2025

First Keystone Corporation reported a net income of $1.05 million for the first quarter of 2025, a significant recovery from a net loss of $18.38 million in the same period last year. This turnaround is attributed primarily to the absence of a goodwill impairment charge, which had negatively impacted the previous year's results by $19.13 million. The earnings per share for the quarter stood at $0.17, compared to a loss of $3.00 per share in the first quarter of 2024. The company maintained its quarterly dividend at $0.28 per share for both periods.

Total assets increased to $1.44 billion as of March 31, 2025, up from $1.43 billion at the end of 2024. The growth was driven by a $15.73 million increase in total loans, which reached $964.18 million, reflecting a 1.7% rise. The real estate loan segment, which constitutes the largest portion of the loan portfolio, saw an increase of $11.86 million. However, total deposits slightly decreased by $487,000 to $1.05 billion, primarily due to a decline in interest-bearing deposits, offset by an increase in non-interest-bearing deposits.

The company’s net interest income for the first quarter was $8.77 million, a 17.3% increase from $7.48 million in the prior year, driven by a rise in interest income from loans. Interest income rose to $18.21 million, while interest expense remained relatively stable at $9.44 million. The net interest margin improved to 2.58%, up from 2.25% a year earlier, indicating better efficiency in generating income from interest-earning assets.

In terms of credit quality, the allowance for credit losses increased to $8.07 million from $7.67 million at the end of 2024, reflecting a provision for credit losses of $751,000 during the quarter. Non-performing assets rose to $5.93 million, up from $4.97 million, with non-accrual loans increasing to $4.72 million. The company continues to monitor its loan portfolio closely amid ongoing economic uncertainties, including inflation and geopolitical tensions.

Looking ahead, First Keystone Corporation remains focused on maintaining its capital strength and liquidity. The company is well-capitalized under regulatory standards, with a total stockholders' equity of $106.48 million as of March 31, 2025. Management is optimistic about future growth opportunities, particularly in the loan segment, while also being cautious of potential economic challenges that could impact credit quality.