First Keystone Lifts Nine-Month 2026 Profit 39.9% on Higher Interest Income

what happened

First Keystone Corporation (OTC: FKYS), the parent of First Keystone Community Bank, published unaudited results for the third quarter of 2026. The figures were reported by TradingView, citing a Business Wire press release.

Net income for the nine months ended September 30, 2026 reached $9,475,000, or $1.50 per share, up 39.9% from a year earlier. Interest income rose 5.6%, mainly on higher balances held at the Federal Reserve Bank. Interest expense grew 3.3%, partly because the subordinated debt switched from a 4.375% fixed rate to a floating rate of 7.745% as of September 30. The bank booked a credit loss recovery of $1,125,000 against an expense of $769,000 a year earlier. Total assets stood at $1,726,469,000.

why it matters

For bank investors, the story shows how rate changes cut both ways: the move to a floating rate on subordinated debt raised costs, while higher yields on reserves at the Fed lifted income. The company is small, so the effect on broader markets is limited.

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