What changed in this filing

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Item 1. Business

2022-03-14 compared with 2021-03-15 · 26 added, 25 removed, 262 unchanged (16% of the section changed)

4 unchanged sentences

Greater than 97% of the Corporation’s revenue and profit came from the commercial bank subsidiary for the years ended December 31, 2021 and 2020, and was the only reportable segment.

At December 31, 2020, the Corporation had total consolidated assets, deposits and stockholders’ equity of approximately $1.2 billion, $937 million and $144 million, respectively.

At December 31, 2021, the Corporation had total consolidated assets, deposits and stockholders’ equity of approximately $1.3 billion, $1.1 billion and $149 million, respectively.

The Bank was originally organized in 1864 as a national banking association.

7 unchanged sentences

The Bank is a full service commercial bank providing a wide range of services to individuals and small to medium sized businesses in its Northeastern Pennsylvania market area.

The Bank’s commercial banking activities include accepting time, demand and savings deposits and making secured and unsecured commercial, real estate and consumer loans.

The Bank’s commercial banking activities include accepting time, demand and savings deposits and making secured and unsecured commercial, real estate, agricultural and consumer loans.

Additionally, the Bank provides personal and corporate trust and agency services to individuals, corporations and others, including trust investment accounts, investment advisory services, mutual funds, estate planning, and management of pension and profit sharing plans.

12 unchanged sentences

The bank’s market extends north through Luzerne County and south to Northampton County.

Ten other adjourning counties are served, such as Pike and Lehigh.

Numerous other counties are also served;

eleven contiguous counties, such as Pike and Lehigh;

as well other surrounding counties, for instance Union and Snyder.

The area served by the Bank includes a mix of rural communities, small to mid-sized towns and cities.

The current population of the Bank’s primary five-county footprint has increased 2.7% since 2017 to 893,000 and is estimated to increase 2.4% to 914,000 by 2027.

As of June 30, 2020, the FDIC deposit market share data ranked the Bank 5 th in the deposit market share out of the top 20 financial institutions in the four-county market, with 6.4% of deposits.

As of June 30, 2021, the FDIC Summary of Deposits report market share data ranked the Bank 3 rd in the deposit market share out of the top 26 banks in the principal four-county deposit market, with 8.1% of deposits.

The Bank’s headquarters, main office, and three of its branch offices are located in Berwick, Pennsylvania.

1 unchanged sentence

The Bank ranks a commanding first in deposit market share in the Berwick market with 67.5% of deposits as of June 30, 2021, based on data compiled annually by the FDIC.

In the course of attracting and retaining deposits and originating loans, the Bank faces considerable competition.

The Bank competes with 59 commercial banks, 4 savings banks and 1 savings and loan association, and 41 credit unions for traditional banking products, such as deposits and loans in its primary five-county market area.

Additionally, the Bank competes with consumer finance companies for loans, mutual funds and other investment alternatives for deposits.

The Bank competes for deposits based on the ability to provide a range of competitively priced products, quality service, competitive rates, online services and convenient locations and hours.

The competition among its peers for loan origination generally relates to interest rates offered, products available, ease of process, quality of service, and loan origination fees charged.

In the course of attracting and retaining deposits and originating loans, the Bank faces considerable competition with various types of financial institutions.

The Bank competes with 29 commercial banks, 2 savings banks, 1 savings and loan association, and 38 credit unions for traditional banking products, such as deposits and loans in its primary five-county market area.

Additionally, the Bank contends with non-bank and online firms, such as consumer finance companies and financial technology companies, for loans, mutual funds and other investment alternatives for deposits.

The Bank vies for deposits based on the ability to provide a range of competitively priced products, quality service, competitive rates, online services and convenient locations and hours.

The challenge among its peers for loan origination generally relates to interest rates offered, products available, ease of process, quality of service, and loan origination fees charged.

The economic base of the Bank’s market region is developed around small business, health care, educational facilities (colleges and public schools), light manufacturing industries, travel and leisure, and agriculture.

1 unchanged sentence

Management continues to pursue new market opportunities based on a strategic plan to efficiently grow the Bank, improve earnings performance, and bring the Bank’s products and services to new customers.

Management strategically addresses growth opportunities versus competitive issues by determining the new products and services to be offered, evaluating expansion opportunities of its existing footprint with new locations, as well as investing in the expertise of skilled staffing.

Management strategically addresses growth opportunities versus competitive issues by formulating the new products and services to be offered, evaluating expansion opportunities of its existing footprint with new locations, as well as investing in the expertise of skilled employees.

The Bank continues to succeed in serving its customers by living up to its motto, “Yesterday’s Traditions.

1 unchanged sentence

Competition - Bank

The Bank’s competition is comprised of national, regional, community banking financial institutions and credit unions.

The Bank is generally competitive with national, regional and community banking financial institutions and credit unions in its service area, with respect to interest rates paid on time, savings and interest-bearing checking deposits, service charges assessed and interest rates charged on loans.

The Bank’s major competitors in Columbia, Luzerne, Montour, Monroe, Northampton, and Lehigh Counties are:

· AgChoice Farm Credit

· First Northern Bank & Trust

· Peoples Security Bank

· Citizens Bank

· Fulton Bank

· Service 1 st Federal Credit Union

· Community Bank, N.A.

· Fulton Bank

· Susquehanna Community Bank

· Honesdale National Bank

· Jersey Shore State Bank

· Embassy Bank

· Landmark Community Bank

· Jersey Shore State Bank

· ESSA Bank & Trust

· Luzerne Bank

· Landmark Community Bank

· Fidelity Deposit and Discount Bank

· Luzerne Bank

· First Columbia Bank & Trust Co.

· NBT Bank, N.A

· First National Bank of PA (FNB of PA)

· Peoples Security Bank

· First Northern Bank & Trust

The Bank is generally competitive with all competing financial institutions in its service area with respect to interest rates paid on time and savings deposits, service charges on deposit accounts and interest rates charged on loans.

· NBT Bank, N.A

Concentration

1 unchanged sentence

The Corporation has been successful in attracting municipal deposits, which make up 27.7% of total deposits at December 31, 2021.

The largest municipal deposit customer consisted of a school district with deposit balances amounting to 13.1% of total deposits.

The largest deposit customer consisted of a municipality with deposit balances amounting to 8.2% of total deposits.

The Corporation currently has the ability to utilize liquidity tools, such as wholesale borrowings or brokered deposits, to replace reductions in municipal deposits.

209 unchanged sentences

The SEC’s internet site address is www.sec.gov .

A copy of the Corporation’s Annual Report on Form 10-K may be obtained without charge at www.fkyscorp.com or via email at info@fkcbank.com .

Quarterly reports on Form 10-Q, current event reports on Form 8-K, and amendments to these reports, may be obtained without charge via email at info@fkcbank.com .

Information may also be obtained via written request to Investor Relations at First Keystone Corporation, Attention:

Cheryl Wynings, 111 West Front Street, P.O.

Box 289, Berwick, Pennsylvania 18603, or by telephone at 570-752-3671, extension 1175.

A copy of the Corporation’s Annual Report on Form 10-K may be obtained without charge at www.fkyscorp.com .

This reference to the Corporation’s Internet address shall not, under any circumstances, be deemed to incorporate the information available at such Internet address into this Form 10-K or other SEC filings.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business