For Further Information Contact:
J. Gerald Bazewicz
President and
Chief Executive Officer
(570) 752-3671
Exhibit 99.1
PRESS RELEASE
FIRST KEYSTONE ANNOUNCES INCREASE IN
FOURTH QUARTER AND 2005 EARNINGS
Berwick, Pennsylvania - January 31, 2006 - First Keystone
Corporation (OTC BB: FKYS), parent company of The First National
Bank of Berwick, reported net income of $1,591,000 for the
quarter ending December 31, 2005, as compared to $1,353,000 for
the fourth quarter of 2004, an increase of 17.6%. For the year
ending December 31, 2005, net income increased to $6,847,000 as
compared to $6,787,000 for 2004. Return on assets and return on
equity were 1.35% and 12.65%, respectively for the year ending
December 31, 2005.
Earnings per share were $.36 for the fourth quarter of 2005, and
$1.56 for the year ending December 31, 2005, which compares to
$.31 and $1.55 for the fourth quarter and year, respectively in
2004. Cash dividends paid for 2005 were $.82 as compared to $.73
paid in 2004, an increase of 12.3%
President J. Gerald Bazewicz reported, "The financial results
reflect a solid performance in 2005 when opportunities to
increase net-interest income, our largest revenue component, were
limited because of a flattened yield curve. The tightening of
our net-interest margin, and a decline in non-interest income in
2005 were largely offset by a decrease in our provision for loan
losses. The reduction in our provision for loan losses was a
result of a decline in charge-offs, decreased non-performing
loans, and improved asset quality."
Total assets increased to $512,399,000 as of December 31, 2005,
an increase of 3.0% over 2004. In addition, total deposits
increased $4,840,000 to $362,796,000 as of December 31, 2005.
Stockholders' equity remained very strong at $53,443,000 as of
December 31, 2005.
The First National Bank of Berwick, an independently owned
community bank since 1864, presently operates 10 full service
offices in Columbia (5), Luzerne (4), and Montour (1) Counties
providing banking and trust services.
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Inquiries regarding the purchase of the company's stock may be
made through the following brokers: Legg Mason Wood Walker,
Inc., 800-888-6673; Janney Montgomery Scott, Inc., 800-526-6397;
Ferris, Baker, Watts, Inc., 800-638-7411; F. J. Morrissey & Co.,
800-842-8928; Ryan, Beck and Company, 800-223-8969; and Boenning
& Scattergood, Inc., 800-883-8383.
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 The First National Bank of Berwick or its
parent company, First Keystone Corporation, please contact J.
Gerald Bazewicz at 570-752-3671, extension 172.
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