Executive Summary

FY 2024 ended with net loss of $13.203M and net loss per share of $2.14, driven primarily by a $19.133M non-cash goodwill impairment recorded in Q1 and higher funding costs; total interest income rose $14.434M (+25.3% YoY) while total interest expense increased $11.271M (+40.4% YoY) .
Balance sheet trends were mixed: assets were $1.428B at year-end (up 0.8% YoY), net loans grew $36.626M (+4.1% YoY), and deposits rose $65.441M (+6.7% YoY), aided by a shift to CDs and brokered CDs .
Operational positives included the derivatives program contributing $1.623M to net interest income in 2024 and cost reductions from vendor changes lowering data processing and ATM/debit card expense by $424k .
Credit costs were pressured by a large Q3 charge-off tied to various loans to a single borrower, lifting the provision for credit losses by $1.857M YoY .
No Q4 2024 earnings call transcript was located on the company’s IR site, and Wall Street consensus estimates via S&P Global were unavailable in this session .

What Went Well and What Went Wrong

What Went Well

Interest income growth: total interest income increased $14.434M (+25.3% YoY) in 2024 on higher rates, CRE loan growth, and higher-yield securities .
Funding and liquidity: deposits rose $65.441M (+6.7% YoY) with a deliberate shift from transactional deposits to term deposits (CDs +$40.100M; brokered CDs +$33.899M) .
Operating efficiency: implementation of a new online banking vendor and vendor credits reduced combined data processing and ATM/debit card expenses by $424k .
“The Corporation has experienced a shift from transactional deposits to term deposits …” .
“… implementation of a new vendor relationship for online banking … and decreased ATM fraud.” .

What Went Wrong

Elevated funding costs: total interest expense rose $11.271M (+40.4% YoY), including higher deposit costs and increased long-term borrowings and brokered CDs .
Non-cash impairment: a full goodwill impairment of $19.133M in Q1 materially impacted 2024 results .
Credit costs: provision for credit losses increased $1.857M YoY, including a large Q3 charge-off tied to a single borrower .

Financial Results

Balance Sheet Progression (quarter-end)

Metric	Q1 2024 (Mar 31)	Q2 2024 (Jun 30)	Q3 2024 (Sep 30)	Q4 2024 (Dec 31)
Total Assets ($USD Millions)	$1,409.698	$1,418.228	$1,438.693	$1,427.759

Profitability (YTD progression; not discrete-quarter EPS)

Metric	Q1 2024 (YTD)	Q2 2024 (YTD)	Q3 2024 (YTD)	FY 2024
Net Income (Loss) ($USD Millions)	($18.377)	($16.997)	($15.490)	($13.203)
Net Loss per Share (YTD) ($)	($3.00)	($2.77)	($2.52)	($2.14)

Interest Income/Expense Trends (YoY change metrics provided by company)

Metric	Q1 2024 (YoY Change)	Q2 2024 (YoY Change)	Q3 2024 (YoY Change)	FY 2024 (YoY Change)
Total Interest Income (YoY $ Change)	+$3.639M	+$7.581M	+$11.586M	+$14.434M
Total Interest Expense (YoY $ Change)	+$3.968M	+$7.017M	+$9.752M	+$11.271M
Derivatives Impact on NII ($USD Millions)	$0.372	$0.774	$1.283	$1.623

Deposit Mix and Funding KPIs

KPI	Q2 2024	Q3 2024	FY 2024
Total Deposits ($USD Millions)	$984.209	N/A (company disclosed YoY changes, not total)	N/A (company disclosed YoY changes, not total)
CDs ($USD Millions change)	N/A	+$52.664	+$40.100
Brokered CDs ($USD Millions change)	N/A	+$29.930	+$33.899
Other Retail Deposits ($USD Millions change)	N/A	($54.988)	($8.558)

Net Loans Growth (YoY)

Period	Net Loans YoY Growth
Q1 2024	+5.5%
Q2 2024	+5.9%
Q3 2024	+6.1%
FY 2024	+4.1%

Notes: The company’s press releases present year-to-date and year-end figures; discrete quarterly revenue and EPS were not disclosed. No S&P Global financials were retrieved in this session.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per Share	Q4 2024	$0.28 quarterly	$0.28 quarterly	Maintained
Financial Guidance (Revenue, Margins, OpEx, etc.)	Q4 2024	None provided	None provided	N/A (company did not issue formal guidance in releases)

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was found on the company’s IR site; table below tracks themes from company disclosures across prior periods.

Topic	Q2 2024 Mentions	Q3 2024 Mentions	Q4 2024 Mentions	Trend
Deposit mix shift to term CDs	Shift from transactional to term deposits noted; deposit increase vs prior year	CDs +$52.664M; brokered CDs +$29.930M; other retail deposits down $54.988M	CDs +$40.100M; brokered CDs +$33.899M; other retail deposits down $8.558M	Continued emphasis on term funding
Funding costs/interest expense	Higher deposit costs; long-term borrowings increased; interest expense +$3.968M YoY	Interest expense +$9.752M YoY	Interest expense +$11.271M YoY	Persistent headwind
Derivative hedging to support NII	Derivatives added $0.372M to NII	Derivatives added $1.283M to NII	Derivatives added $1.623M to NII	Growing contribution
Credit provisioning/charge-offs	Provision +$0.740M YoY	Large charge-off tied to single borrower; provision +$1.828M YoY	Provision +$1.857M YoY	Elevated due to Q3 event
Operational efficiency/vendor changes	New online banking vendor; reduced ATM fraud; combined expense down $250k	Combined data processing/ATM expense down $600k	Combined data processing/ATM expense down $424k	Ongoing cost optimization
Branch/network expansion	Bethlehem, PA branch costs cited (occupancy/advertising increase)	Not highlighted	Not highlighted	One-time build-out effects
Leadership/management	Not highlighted	Not highlighted	CEO transition announced Jan 8, 2025 (effective Jan 31, 2025)	Leadership change post-Q4

Management Commentary

The company attributed 2024 interest income growth to “increased interest rates, growth in commercial real estate loans, and the purchase of higher yielding securities” .
Funding strategy emphasized term deposits: “Deposits increased … due to a $40,100,000 increase in CDs … and a $33,899,000 increase in brokered CDs … These increases were offset by a decrease in other retail deposits of $8,558,000” .
Operational improvements: “implementation of a new vendor relationship for online banking, the application of vendor relationship credits … and decreased ATM fraud” drove lower processing/ATM-related expenses .
Derivatives supported earnings: “The net effect of the derivatives on net interest income was $1,623,000 for the year ended December 31, 2024” .
Leadership transition: Elaine A. Woodland retired January 31, 2025; Jack W. Jones appointed President & CEO effective that date .

Q&A Highlights

No Q4 2024 earnings call transcript or Q&A was identified on the company’s IR site .

Estimates Context

Wall Street consensus estimates via S&P Global were unavailable in this session; the company’s press releases did not disclose quarterly revenue or EPS for Q4 2024 .
Given the lack of disclosed discrete-quarter metrics and absent consensus data, estimate comparisons and beat/miss analysis cannot be performed reliably at this time.

Key Takeaways for Investors

FY 2024 headline loss was driven by a non-cash goodwill impairment ($19.133M) and elevated funding costs; underlying interest income grew strongly on higher rates and asset mix .
Deposit strategy pivoted to CDs and brokered CDs, lifting total deposits (+6.7% YoY) but raising interest expense; funding cost management remains a critical lever for margin stabilization .
Derivative hedging increasingly supported net interest income through 2024; continuation of this program provides a partial offset to funding pressures .
Credit risk needs monitoring following a large Q3 charge-off tied to a single borrower; provisioning trends may normalize absent further idiosyncratic events .
Operating efficiency initiatives (vendor changes, fraud reduction) delivered measurable savings; incremental execution could aid expense control in 2025 .
Leadership transition to Jack W. Jones occurred post-Q4; watch for strategic updates or operational priorities under new management .
With no formal guidance and limited discrete-quarter disclosures, focus on sequential balance sheet trends (assets, loans, deposits) and funding mix to gauge margin trajectory and earnings normalization .

FIRST KEYSTONE CORP (FKYS)·Q4 2024 Earnings Summary