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FK

FIRST KEYSTONE CORP (FKYS)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered solid profitability: net income $2.81M* and diluted EPS $0.45*, with margins and returns materially improved versus Q3 2024 and stable sequentially. Year-to-date net income is $6.78M and YTD EPS $1.09, reflecting normalized operations after last year’s goodwill impairment *.
  • Balance sheet growth remained robust: total assets reached $1.582B (+10.0% YoY), supported by loan growth (+$23.13M YoY) and strong deposit inflows (+$172.59M YoY), though deposit mix continued to shift toward higher-cost retail and brokered CDs .
  • Operating drivers: interest income up $4.07M (9M YoY) on CRE loan growth; provision for credit losses down $0.72M on slower loan growth and lower qualitative loss factors; non-interest income (+$0.64M) benefited from life insurance proceeds and higher ATM/debit fees .
  • No Wall Street EPS/revenue consensus available; earnings call transcript not found. Near-term stock catalysts: continued asset/deposit growth, deposit mix normalization, credit quality, and expense control (FDIC/technology refresh) .

What Went Well and What Went Wrong

What Went Well

  • Interest income strength: “reported an increase in interest income by $4,073,000… predominantly due to growth in commercial real estate loans” (9M YoY) .
  • Lower provision: “provision for credit losses decreased by $723,000… due to slower loan growth and a reduction to qualitative loss factors” (9M YoY) .
  • Non-interest income tailwinds: “Other non-interest income increased $330,000 mainly due to $255,000 in gains from life insurance proceeds… a $40,000 increase in ATM and debit card fee income, and a $29,000 increase in gains on sales of mortgage loans” (9M YoY) .

What Went Wrong

  • Deposit cost headwind: “increase of $1,683,000 in interest expense related to deposits,” driven by brokered CDs; brokered CD balances rose $64.11M YoY and added $1.24M in interest expense (9M) .
  • Operating expense items: fraud write-off ($307K), ATM fleet replacement (furniture/equipment/computer +$352K), FDIC insurance (+$239K) (9M) .
  • No earnings call transcript available; limited external estimate coverage constrains beat/miss narrative for near-term trading setup (no EPS/revenue consensus from S&P Global)*.

Financial Results

Headline Results

MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$1.860*$1.872*$1.759*$1.798*$1.906*
Net Income ($USD Millions)$1.507*$2.287*$1.053*$2.914*$2.808*
Diluted EPS ($USD)$0.244*$0.368*$0.169*$0.469*$0.450*

Values marked with * retrieved from S&P Global.

Margins & Returns

MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Net Income Margin (%)16.21*22.05*10.77*25.25*25.17*
Return on Assets (%)0.422*0.638*0.294*0.811*0.744*
Return on Equity (%)5.784*8.544*3.950*10.892*10.220*

Values marked with * retrieved from S&P Global.

Balance Sheet Highlights

MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Total Assets ($USD Billions)$1.439* $—$1.435* $1.438* $1.582*

Values marked with * retrieved from S&P Global. The company disclosed Q3 2025 assets of $1.582B (+10.0% YoY) ; Q3 2024 assets were $1.439B .

Note: Narrative drivers also include YoY deposit inflows of +$172.59M, retail CDs +$118.77M, brokered CDs +$64.11M, and shift from transactional to term deposits .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per shareQ3 2025$0.28 declared in prior quarters$0.28 declared; record 9/11/2025, payable 9/30/2025Maintained
YTD dividendsYTD through 9/30/2025$0.84 at YTD 2024$0.84 at YTD 2025Maintained YoY
Revenue, margins, OpEx, tax rateQ4 2025 / FYNot providedNot providedN/A (no formal guidance in releases)

Earnings Call Themes & Trends

(No Q3 2025 call transcript found; themes derived from disclosures across quarters.)

TopicPrevious Mentions (Q1 2025)Previous Mentions (Q2 2025)Current period (Q3 2025)Trend
Deposit mix shift to CDs+$55.45M CDs; +$29.04M brokered; other retail −$20.74M +$82.61M CDs; +$39.04M brokered; other retail −$51.59M Retail CDs +$118.77M; brokered CDs +$64.11M; other retail −$12.75M Continuing mix shift toward term/brokered
Interest income driversRates and CRE loan growth CRE loan growth CRE loan growth Consistent driver
Derivative impact on NII$0.165M (3M); prior year $0.372M $0.346M (6M); prior year $0.774M $0.586M (9M); prior year $1.283M Positive, variable YoY
Credit provisioningProvision up $0.487M (Q1) on growth/charge-offs Provision down $0.260M (6M) Provision down $0.723M (9M) Improving
Operating expensesFDIC +$121K; ATM upgrade costs; salaries ↑ FDIC +$207K; ATM upgrade costs; salaries ↑ FDIC +$239K; ATM upgrade costs; fraud write-off $307K Elevated but manageable
LoansNet loans +$53.84M YoY Net loans +$37.28M YoY Loans +$23.13M YoY Growth moderating

Management Commentary

  • “The increase [in interest income] was predominantly due to growth in commercial real estate loans.”
  • “The provision for credit losses decreased by $723,000… mainly due to slower loan growth and a reduction to qualitative loss factors.”
  • “Other non-interest income increased $330,000 mainly due to $255,000 in gains from life insurance proceeds… a $40,000 increase in ATM and debit card fee income, and a $29,000 increase in gains on sales of mortgage loans.”
  • “Deposits increased by $172,585,000 or 16.9%… Retail CDs increased by $118,769,000… Brokered CDs increased by $64,106,000.”

Q&A Highlights

  • No Q3 2025 earnings call transcript or Q&A found via filings catalog or public transcripts. Guidance clarifications were limited to dividend declarations; no numeric revenue/margin guidance provided in the quarter .

Estimates Context

  • S&P Global shows no Wall Street EPS or revenue consensus for FKYS in Q3 2025; Primary EPS Consensus Mean and # of EPS Estimates are unavailable. As a result, beat/miss relative to consensus cannot be assessed*.
  • Operationally, disclosed actuals indicate improved profitability and asset growth, but with a higher-cost deposit mix that could keep funding costs elevated absent mix normalization .
MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Primary EPS Consensus Mean—*—*—*—*—*
Primary EPS - # of Estimates0*0*0*0*0*
Revenue Consensus Mean—*—*—*—*—*
Revenue - # of Estimates0*0*0*0*0*

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Profitability improved and stabilized: EPS $0.45* and net margin ~25%* in Q3 2025, demonstrating post-impairment normalization and operating resilience; watch for sustainability as credit and funding conditions evolve *.
  • Funding costs remain the key lever: aggressive CD/brokered CD growth supported deposits but lifted interest expense; margin trajectory hinges on deposit mix normalization and pricing discipline .
  • Credit quality trending better: lower provisioning (9M) and narrower qualitative loss factors support earnings durability; monitor charge-offs and CRE exposures given macro .
  • Balance sheet growth intact: assets +10% YoY to $1.582B, loans +$23.13M YoY; growth pace moderating—focus on risk-adjusted returns and capital .
  • Expense vigilance: FDIC premiums and technology upgrades (ATM fleet) are ongoing headwinds; expect management to offset via vendor optimization and fraud mitigation .
  • Dividend continuity: $0.28 declared in Q3; YTD dividends $0.84, flat YoY—income investors may see stability as operations normalize .
  • Trading setup: With no consensus estimates or transcript, narrative is driven by deposit mix, provisioning, and balance sheet growth; catalysts include mix improvement and steady credit, while risks include persistent funding costs and regulatory expense .

Footnote: All values marked with * retrieved from S&P Global.

Sources: Q3 2025 8-K and press release , Q2 2025 press/8-K , Q1 2025 press/8-K , Q3 2024 press/8-K , Dividend press release .