First Keystone Corp (OTC: Pink:FKYS), a Pennsylvania-based commercial bank with a market capitalization of $92.4 million, has announced the appointment of Jack W. Jones as its new Executive Vice President and Chief Operating Officer, effective Monday.
The company's stock, which according to InvestingPro analysis is currently trading above its Fair Value, has shown strong momentum with a 10% gain in the past week. Jones will succeed Elaine A. Woodland as President and CEO following her retirement on January 31, 2025.
Jones, 53, brings a wealth of experience to First Keystone, having served as Senior Vice President and Chief Banking Officer at Penns Woods Bancorp, Inc. and Luzerne Bank since January 2021. He was also Regional President for Luzerne Bank since September 2014.
He joins First Keystone at a time when the bank maintains its impressive 29-year streak of consecutive dividend payments, currently offering shareholders a substantial 7.5% dividend yield.
The transition comes as part of a planned succession following Woodland's retirement announcement. Jones has also been appointed to the boards of directors of both the Corporation and the Bank as of Monday.
As per the employment agreement, Jones will receive an annual base salary of $395,000 and will be eligible for bonuses, benefits, and reimbursement for certain expenses. The agreement, which commenced on Monday, has an initial four-year term with automatic extensions unless notice of non-renewal is given.
In case of involuntary termination without cause or voluntary termination for good reason, Jones is entitled to severance payments and continuation of certain benefits, with specific terms varying depending on the timing and circumstances of the termination.
The employment agreement includes customary confidentiality and non-competition clauses to protect the interests of First Keystone.
This executive change is disclosed in a recent 8-K filing with the Securities and Exchange Commission, detailing the compensatory arrangements for certain officers of First Keystone Corp. InvestingPro data reveals the bank currently faces profitability challenges, with a weak overall financial health score. Subscribers to InvestingPro can access over 30 additional financial metrics and insights about First Keystone's performance and prospects.
In other recent news, First Keystone Corporation, a banking institution with a market cap of $88.62 million, announced significant changes in its executive leadership. Elaine A. Woodland, the current President and CEO, is set to retire on January 31, 2025. Despite her departure, Woodland will continue to serve as a director for both the Corporation and the Bank. The Board of Directors is actively engaged in succession planning to ensure a smooth leadership transition.
Simultaneously, the Corporation announced that Diane C.A. Rosler, the Chief Financial Officer, will retire on December 31, 2024. Stacy Gordner, who joined the bank as the Controller in 2024, will serve as the interim CFO starting from January 1, 2025. Gordner's annual salary as interim CFO will be $145,000, along with other benefits included in the senior executive compensation package.
These recent developments come as First Keystone Corporation continues to operate within the state commercial banks sector. Despite facing challenges reflected in its weak financial health score, the company offers a substantial 7.86% dividend yield, making it a point of interest for income-focused investors. The Corporation has yet to announce successors for the President and CEO positions.
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