EXHIBIT 11


                          FIRST KEYSTONE CORPORATION
                   COMPUTATION OF EARNINGS PER COMMON SHARE




                           Quarter Ended March 31,
                                  1998  1997


(Dollars in Thousands)

                                                     
Primary
  Net Income                                 $   1,141     $   1,123
    Shares<F1>
      Weighted average number of
        common shares outstanding            2,933,727     2,933,727
      Adjustments - increases or
        decreases                                 None          None
      Weighted average number of
        common shares outstanding
        as adjusted                          2,933,727     2,933,727

      Primary earnings per
        common share                         $     .39     $     .38


Assuming full dilution 
  Net Income                                 $   1,141     $   1,123
    Shares<F1>
      Weighted average number of
        common shares outstanding            2,933,727     2,933,727
      Adjustments - increases or
        decreases                                 None          None
      Weighted average number of
        common shares outstanding
        as adjusted                          2,933,727     2,933,727

      Earnings per common share
        assuming full dilution               $     .39     $     .38



<FN>
<F1>
Restated to reflect a 3 for 1 stock split issued in the form of a 200%
stock dividend paid in 1998.
</FN>