For Further Information Contact:

                             J. Gerald Bazewicz
                             President and
                             Chief Executive Officer
                             (570) 752-3671



                           Exhibit 99.1


                          PRESS RELEASE


              FIRST KEYSTONE CORPORATION ANNOUNCES
                      THIRD QUARTER DIVIDEND

Berwick, Pennsylvania - August 31, 2009 - First Keystone
Corporation (OTC BB: FKYS), parent company of First Keystone
National Bank, declared a $.23 per share quarterly cash dividend
to shareholders of record as of September 15, 2009, payable
September 30, 2009.

With this third quarter dividend, total cash dividends per share
will amount to $.69 as of September 30, 2009, up from $.66 for
the three quarters ending September 30, 2008, an increase of
4.5%.

First Keystone National Bank, an independently owned community
bank since 1864, presently operates 14 full service offices in
Columbia (5), Luzerne (4), Montour (1) and Monroe (4) Counties
providing banking and trust services.  In Monroe County, the Bank
trades as Pocono Community Bank, a division of First Keystone
National Bank.

Inquiries regarding the purchase of the company'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., 800-883-8383; and Stifel Nicolaus & Co. Inc.,
800-223-6807.

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 National Bank or its
parent company, First Keystone Corporation, please contact J.
Gerald Bazewicz at 570-752-3671, extension 1172.




                               -5-