8-K

         UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

                             FORM 8-K


                          CURRENT REPORT

              PURSUANT TO SECTION 13 OR 15(D) OF THE
              OF THE SECURITIES EXCHANGE ACT OF 1934



Date of Report (Date of earliest reported): October 29, 2010



                    FIRST KEYSTONE CORPORATION
               ____________________________________
      (Exact name of registrant as specified in its Charter)


          PENNSYLVANIA             2-88927           23-2249083
       __________________         __________         _____________
        (State or other          (Commission         (IRS Employer
          jurisdiction          File Number)     Identification No.
       of incorporation)



111 West Front Street, Berwick, Pennsylvania       18603
____________________________________________      ________
  (Address of principal executive offices)       (Zip Code)


Registrant's telephone number, including area code: (570) 752-3671



Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions (see General
Instruction A.2. below):

[ ]  Written communications pursuant to Rule 425 under the
     Securities Act (17 CFR 230.425)

[ ]  Soliciting material pursuant to Rule 14a-12 under the
     Exchange Act (17 CFR 240.14a-12)

[ ]  Pre-commencement communications pursuant to Rule 14d-2(b)
     under the Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement communications pursuant to Rule 13e-4(c)
     under the Exchange Act (17 CFR 240.13e-4(c))





Item 2.02  RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On October 29, 2010, First Keystone Corporation, parent company
of First Keystone Community Bank, announced its earnings for the
quarter ending September 30, 2010.  The press release announcing
third quarter earnings is filed as Exhibit 99.1 and incorporated
herein by reference.


ITEM 9.01  Financial Statements and Exhibits

     (a)   Not applicable

     (b)   Not applicable

     (c)   Not Applicable

     (d)   Exhibits

Exhibit No.              Description

    99.1                 Press Release of First Keystone
                         Corporation dated October 29, 2010.



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                            Signatures


     Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned, there
unto duly authorized.


FIRST KEYSTONE CORPORATION
(Registrant)




By:        /s/ Matthew P. Prosseda
           Matthew P. Prosseda
           Chief Executive Officer

Date:      November 3, 2010



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EXHIBIT INDEX

                                                        Page
Exhibit No.     Description                              No.
___________     ___________                             _____

   99.1         Press Release of First                    5
                Keystone Corporation dated
                October 29, 2010



                              -4-

EX-99

         FIRST KEYSTONE ANNOUNCES THIRD QUARTER EARNINGS
           AND 10.1% INCREASE IN YEAR-TO-DATE EARNINGS

Berwick, Pennsylvania - October 29, 2010 - First Keystone
Corporation (OTC BB: FKYS), parent company of First Keystone
Community Bank, reported net income of $2,490,000 for the quarter
ending September 30, 2010, as compared to $2,086,000 for the
third quarter of 2009.  Earnings per share for the quarter ending
September 30, 2010 were $.45, as compared to $.39 per share
earned in the third quarter of 2009. For the nine months ending
September 30, 2010, net income was $6,990,000 as compared to
$6,351,000 for the first nine months of 2009, an increase of
10.1%.  Earnings per share were $1.28 for the first nine months
of 2010, up 9.4% from the $1.17 reported in the first nine months
of 2009. The annualized return on assets and return on equity
were 1.14% and 11.63%, respectively for the nine months ending
September 30, 2010.

Chief Executive Officer Matthew P. Prosseda reported, "We are
pleased to report our results for the third quarter of 2010.  Net
Interest Income grew by more than 17% in the period.  Our asset
yields have held up while our cost of funds is decreasing.  It
will be difficult to maintain that given the expectation that
rates will remain low for some time.  We did record an $800,000
Recovery on Loss due to Defalcation.  We also added $1,075,000 to
our Reserve for Loan Losses, with the write down of two loans
that were taken into Other Real Estate Owned.  With this
provision we have maintained our allowance for loan losses at
1.26% of total loans."

Total assets increased to $815,321,000 as of September 30, 2010,
an increase of 7.5% over the same period in 2009.  Total deposits
and loans increased to $627,599,000 and $407,976,000,
respectively as of the end of the third quarter of 2010.  In
addition, cash dividends paid through September 30, 2010 were
$.69 per share.

First Keystone Community Bank, an independently owned community
bank since 1864, presently operates 15 full service offices in
Columbia (5), Luzerne (5), Monroe (4), and Montour (1) Counties
providing banking and trust services.  On October 1, 2010 the
Bank converted from a national to a state charter.  This
necessitated a name change from First Keystone National Bank.  At
the same time, we changed the trading name in Monroe County from
Pocono Community Bank to First Keystone Community 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 Community Bank or its
parent company, First Keystone Corporation, please contact
Matthew P. Prosseda at 570.752.3671, extension 1116.



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