FIRST KEYSTONE CORP 10-K

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES The Corporation’s common stock is traded in the over-the-counter market on the OTC Market under the symbol “FKYS”. The following table sets forth: ● The quarterly high and low prices for a share of the Corporation’s common stock during the periods indicated as reported to the management of the Corporation; ● Quarterly dividends on a share of the common stock paid with respect to each quarter since January 1, 2019; and ● The quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ MARKET VALUE OF COMMON STOCK ​ ​ ​ ​ ​ ​ ​ ​ Per Share ​ ​ ​ ​ ​ ​ ​ ​ Dividend 2020 High Low Paid First quarter ​ $ 24.75 ​ $ 16.00 ​ $ 0.27 Second quarter ​ $ 23.00 ​ $ 16.50 ​ $ 0.27 Third quarter ​ $ 22.50 ​ $ 18.22 ​ $ 0.27 Fourth quarter ​ $ 20.59 ​ $ 18.01 ​ $ 0.27 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividend 2019 High Low Paid First quarter ​ $ 24.95 ​ $ 21.00 ​ $ 0.27 Second quarter ​ $ 27.00 ​ $ 21.00 ​ $ 0.27 Third quarter ​ $ 25.50 ​ $ 22.05 ​ $ 0.27 Fourth quarter ​ $ 25.25 ​ $ 22.01 ​ $ 0.27 ​ As of December 31, 2020, the Corporation had approximately 893 shareholders of record. The Corporation has paid dividends since commencement of business in 1984. It is the present intention of the Corporation’s Board of Directors to continue the dividend payment policy. Stock value, cost and availability of external capital, and the Corporation’s present and anticipated capital needs are weighed in the process of making a responsible decision. Further dividends must necessarily depend upon earnings, financial condition, appropriate legal restrictions and other factors relevant at the time the Board of Directors of the Corporation considers its dividend policy. Cash available for dividend distributions to shareholders of the Corporation must initially come from dividends paid by the Bank to the Corporation. Therefore, the restrictions on the Bank’s dividend payments are directly applicable to the Corporation. ​ ​ ​ ​ 22 Table of Contents Transfer Agent: ​ American Stock Transfer & Trust Company, LLC (AST) (800) 937-5449 6201 15 th Avenue Brooklyn, NY 11219 ​ The following brokerage firms make a market in First Keystone Corporation common stock: ​ RBC Wealth Management (800) 223-4207 Janney Montgomery Scott LLC (800) 526-6397 Stifel Nicolaus & Co. Inc. (800) 679-5446 Boenning & Scattergood, Inc. (800) 883-1212 ​ Dividend Restrictions on the Bank Generally, as a Pennsylvania state chartered bank, under Pennsylvania banking law, the Bank may only pay dividends out of accumulated net earnings. Dividend Restrictions on the Corporation Under the Pennsylvania Business Corporation Law of 1988, as amended, the Corporation may not pay a dividend if, after giving effect thereto, either: ● The Corporation would be unable to pay its debts as they become due in the usual course of business; or ● The Corporation’s total assets would be less than its total liabilities. The determination of total assets and liabilities may be based upon: ● Financial statements prepared on the basis of generally accepted accounting principles; ● Financial statements that are prepared on the basis of other accounting practices and principles that are reasonable under the circumstances; or ● A fair valuation or other method that is reasonable under the circumstances. ​ 23 Table of Contents ITEM 6. SELECTED FINANCIAL DATA (Dollars in thousands, except per share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ 2020 2019 2018 2017 2016 ​ SELECTED FINANCIAL DATA AT YEAR END: ​ ​ ​ ​ ​ ​ Total assets ​ $ 1,179,047 ​ $ 1,007,226 ​ $ 1,012,000 ​ $ 990,121 ​ $ 984,283 ​ Total securities ​ 368,357 ​ 279,861 ​ 317,614 ​ 350,218 ​ 379,641 ​ Net loans ​ 712,677 ​ 640,727 ​ 599,647 ​ 551,910 ​ 515,025 ​ Total deposits ​ 937,488 ​ 761,628 ​ 671,553 ​ 778,146 ​ 725,982 ​ Total long-term borrowings ​ 45,000 ​ 55,000 ​ 45,000 ​ 65,000 ​ 75,116 ​ Total stockholders’ equity ​ 144,242 ​ 128,752 ​ 116,756 ​ 116,719 ​ 109,685 ​ SELECTED OPERATING DATA: ​ ​ ​ ​ ​ ​ Interest income ​ $ 39,567 ​ $ 38,527 ​ $ 35,573 ​ $ 32,268 ​ $ 31,643 ​ Interest expense ​ 6,360 ​ 10,243 ​ 8,620 ​ 6,548 ​ 5,282 ​ Net interest income ​ 33,207 ​ 28,284 ​ 26,953 ​ 25,720 ​ 26,361 ​ Provision for loan losses ​ 1,200 ​ 450 ​ 200 ​ 267 ​ 2,083 ​ Net interest income after provision for loan losses ​ 32,007 ​ 27,834 ​ 26,753 ​ 25,453 ​ 24,278 ​ Non-interest income ​ 6,012 ​ 6,929 ​ 5,562 ​ 6,171 ​ 7,387 ​ Non-interest expense ​ 24,605 ​ 23,422 ​ 22,645 ​ 21,521 ​ 20,348 ​ Income before income tax expense ​ 13,414 ​ 11,341 ​ 9,670 ​ 10,103 ​ 11,317 ​ Income tax expense ​ 1,577 ​ 1,114 ​ 459 ​ 1,455 ​ 1,845 ​ Net income ​ $ 11,837 ​ $ 10,227 ​ $ 9,211 ​ $ 8,648 ​ $ 9,472 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ PER SHARE DATA: ​ ​ ​ ​ ​ ​ Net income ​ $ 2.03 ​ $ 1.77 ​ $ 1.60 ​ $ 1.52 ​ $ 1.68 ​ Dividends ​ 1.08 ​ 1.08 ​ 1.08 ​ 1.08 ​ 1.08 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ PERFORMANCE RATIOS: ​ ​ ​ ​ ​ ​ Return on average assets ​ 1.09 % 1.02 % 0.92 % 0.86 % 0.96 % Return on average equity ​ 8.61 % 8.17 % 8.05 % 7.54 % 8.23 % Dividend payout ​ 53.29 % 61.08 % 67.26 % 71.05 % 64.30 % Average equity to average assets ​ 12.72 % 12.42 % 11.39 % 11.45 % 11.68 % ​ ​