PARENT COMPANY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2012

PARENT COMPANY FINANCIAL INFORMATION [Abstract]

PARENT COMPANY FINANCIAL INFORMATION

NOTE 21 - PARENT COMPANY FINANCIAL INFORMATION

Condensed financial information for First Keystone Corporation (parent company only) was as follows:

BALANCE SHEETS
(Amounts in thousands)	December 31
	2012			2011
ASSETS
Cash in subsidiary bank	$	4,751		$	3,638
Investment in subsidiary bank		106,008			96,998
Investment in marketable equity securities		1,977			1,741
Prepaid expenses and other assets		526			234
TOTAL ASSETS	$	113,262		$	102,611
LIABILITIES
Advances from subsidiary bank	$	9,891		$	9,519
Accruals and other liabilities		41			0
TOTAL LIABILITIES	$	9,932		$	9,519
STOCKHOLDERS' EQUITY
Common stock	$	11,435		$	11,375
Surplus		30,725			30,157
Retained earnings		54,532			49,872
Accumulated other comprehensive income		12,528			7,757
Treasury stock, at cost		(5,890	)		(6,069	)
TOTAL STOCKHOLDERS' EQUITY	$	103,330		$	93,092
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	113,262		$	102,611

STATEMENTS OF INCOME
(Amounts in thousands)	Year Ended December 31
	2012			2011			2010
INCOME
Dividends from subsidiary bank	$	5,867		$	5,867		$	5,867
Dividends - other		63			58			51
Investment securities (losses)		(97	)		(74	)		(81	)
Interest		4			9			14
Miscellaneous income		0			6			0
TOTAL INCOME	$	5,837		$	5,866		$	5,851
OPERATING EXPENSES		151			128			131
Income Before Taxes and Equity in
Undistributed Net Income of Subsidiary	$	5,686		$	5,738		$	5,720
Income tax benefit		80			34			78
Income Before Equity in Undistributed Net
Income of Subsidiary	$	5,766		$	5,772		$	5,798
Equity in Undistributed Net Income of Subsidiary		4,404			4,135			3,163
NET INCOME	$	10,170		$	9,907		$	8,961

STATEMENTS OF CASH FLOWS
(Amounts in thousands)	Year Ended December 31
	2012			2011			2010
OPERATING ACTIVITIES
Net income	$	10,170		$	9,907		$	8,961
Adjustments to reconcile net income to net cash
provided by operating activities:
Losses on sales of investment securities		97			74			81
Deferred income tax (benefit) expense		(31	)		0			31
Equity in (excess of) undistributed net income of subsidiary		(4,404	)		(4,135	)		(3,163	)
(Increase) decrease in prepaid expenses and other assets		(303	)		277			(36	)
Increase (decrease) in advances from subsidiary bank - net operating		372			(176	)		(97	)
NET CASH PROVIDED BY OPERATING ACTIVITIES	$	5,901		$	5,947		$	5,777
INVESTING ACTIVITIES
Purchases of marketable equity securities	$	(445	)	$	0		$	(19	)
Proceeds from sales of marketable equity securities		389			77			240
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES	$	(56	)	$	77		$	221
FINANCING ACTIVITIES
Proceeds from issuance of common stock	$	269		$	0		$	0
Proceeds from issuance of treasury stock		85			16			43
Cash dividends paid		(5,086	)		(5,281	)		(5,061	)
NET CASH (USED IN) FINANCING ACTIVITIES	$	(4,732	)	$	(5,265	)	$	(5,018	)
INCREASE IN CASH AND CASH EQUIVALENTS	$	1,113		$	759		$	980
CASH AND CASH EQUIVALENTS, BEGINNING		3,638			2,879			1,899
CASH AND CASH EQUIVALENTS, ENDING	$	4,751		$	3,638		$	2,879