First Keystone Corp. · OTC:FKYS
First Keystone — Shareholder Meeting (May 2015)
56 slides from First Keystone's shareholder meeting presentation, May 11, 2015
Slide 1: First Keystone Corporation Annual Stockholders' Meeting
First Keystone Corporation May 5, 2015 Annual Stockholders’ Meeting
Slide 2: Forward-looking statements
Matthew Prosseda President and CEO This presentation contains certain forward - looking statements, which are included pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, and reflect management’s beliefs and expectations based on information currently av
Slide 3: Income Statement in Graphic Form
INCOME STATEMENT IN GRAPHIC FORM How we generated $38,921 in income: INCOME ON LOANS $20,545 53% INVESTMENT INCOME $10,474 27% OTHER INCOME $7,902 20% 6B How we used our $38,921 in income PAID TO DEPOSITORS $2,953 8% BORROWING Costs $1499 4% BB PROVISIONS FOR LOAN LOSSES $433 1% we EMPLOYEES $11,475
Slide 4: Average Loan and Investment Balances
$410,427 $412,543 $423,580 $436,040 $468,470 $298,147 $321,873 $321,208 $321,627 $356,043 $230,000 $280,000 $330,000 $380,000 $430,000 $480,000 $530,000 2010 2011 2012 2013 2014 Average Loan and Investment Balances (Amounts in thousands) Loans Investments
Slide 5: Loan and Investment Yields
6.01% 5.75% 5.45% 4.83% 4.51% 5.13% 4.83% 4.58% 3.85% 3.28% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 6.50% 2010 2011 2012 2013 2014 Loan and Investment Yields (tax equivalent) Loan Yields Investment Yields
Slide 6: Loan and Investment Income
$24,666 $23,738 $23,103 $21,081 $21,127 $15,310 $15,564 $14,493 $12,252 $11,663 $10,000 $15,000 $20,000 $25,000 $30,000 2010 2011 2012 2013 2014 Loan and Investment Income (tax equivalent) (Amounts in thousands) Loan Income Investment Income
Slide 7: Average Total and Earning Assets
$819,625 $821,148 $812,980 $838,560 $900,952 $749,733 $748,785 $747,579 $765,696 $825,683 $700,000 $750,000 $800,000 $850,000 $900,000 2010 2011 2012 2013 2014 Average Total and Earning Assets (amounts in thousands) Average Total Assets Average Earning Assets
Slide 8: Average Interest Bearing Deposits and Borrowings
$557,506 $558,321 $538,549 $569,235 $566,243 $101,366 $92,265 $86,839 $75,296 $129,788 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2010 2011 2012 2013 2014 Average Interest Bearing Deposits and Borrowings (amounts in thousands) Average Interest Bearing Deposits Average Borrowings
Slide 9: Deposit and Borrowing Costs
Liability Costs 1.63% 1.20% 0.85% 0.64% 0.52% 3.58% 2.91% 2.25% 1.77% 1.15% 0.00% 1.00% 2.00% 3.00% 4.00% 2010 2011 2012 2013 2014 Deposit and Borrowing Costs Deposits Borrowings
Slide 10: Deposit and Borrowing Expense
Interest Expense $9,111 $6,718 $4,556 $3,623 $2,953 $3,631 $2,687 $1,958 $1,331 $1,499 $0 $5,000 $10,000 2010 2011 2012 2013 2014 Deposit and Borrowing Expense (amounts in thousands) Deposit Interest Borrowing Interest
Slide 11: Net Interest Income
$27,234 $29,897 $31,082 $28,397 $28,344 $25,000 $26,000 $27,000 $28,000 $29,000 $30,000 $31,000 $32,000 2010 2011 2012 2013 2014 Net Interest Income (tax equivalent) (amounts in thousands)
Slide 12: Net Interest Margin
3.63% 3.99% 4.16% 3.71% 3.43% 3.25% 3.50% 3.75% 4.00% 4.25% 2010 2011 2012 2013 2014 Net Interest Margin
Slide 13: Non-Interest Income and Expense
$4,795 $4,320 $5,120 $4,905 $5,146 $17,272 $17,695 $19,587 $19,597 $21,208 $0 $5,000 $10,000 $15,000 $20,000 $25,000 2010 2011 2012 2013 2014 Non - Interest Income and Expense* (amounts in thousands) Total Non-Interest Income Total Non-Interest Expense *Before Net Investment Securities Gains, FHLB P
Slide 14: Net Income After Taxes
$8,961 $9,907 $10,170 $10,273 $10,211 $8,000 $9,000 $10,000 $11,000 2010 2011 2012 2013 2014 Net Income After Taxes (amounts in thousands)
Slide 15: Earnings and Dividends per Share
$1.65 $1.82 $1.86 $1.87 $1.84 $0.93 $0.97 $1.01 $1.04 $1.05 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 2010 2011 2012 2013 2014 Earnings and Dividends per Share Earnings Dividends
Slide 16: Income Statement
Income Statement ($ in thousands, except per share data) Net Interest Income +Non - Interest Income =Operating Revenue - Loan Loss Provision =Pre - Tax Income - Income Tax Expense =Net Income Earnings Per Share 3 Months Ended March 31, 2015 3 Months Ended March 31, 2014 %Change $6,717 1,857 $8,574 2
Slide 17: Balance Sheet
Balance Sheet ($ in thousands) Cash & Due From Banks Investment Securities Net Loans Premises & Equip., Net Other Assets Total Assets Non - Interest Bearing Deposits Interest Bearing Deposits Total Deposits Borrowings Other Liabilities Stockholders’ Equity Liabilities and Stockholders’ Equity $ 8,21
Slide 18: 5 Year Total Return Performance
0 50 100 150 200 250 01/01/09 01/01/10 01/01/11 01/01/12 01/01/13 01/01/14 First Keystone Corporation NASDAQ Composite SNL Bank $500M-$1B Period Ending Index 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 First Keystone Corporation 100.00 108.87 134.25 166.11 177.91 182.95 NASDAQ Composite 10
Slide 19: Elaine A. Woodland, Executive Vice-President, Chief Operating Officer
Elaine A. Woodland Executive Vice - President Chief Operating Officer
Slide 20: Summer 1864 - Charter Granted
Summer 1864 – • I nformal meetings of Berwick business men • Intention of providing Berwick with banking facilities Charter Granted September 21, 1864 • First National Bank of Berwick • Charter No. 568 • Directors were named • Bank President elected
Slide 21: Mordecai W. Jackson Term: 1864-1894
Mordecai W. Jackson Term: 1864 - 1894
Slide 22: Anniversary Celebration
150 th Anniversary Celebration
Slide 23: Slide 23
Slide 24: High-yield checking and savings rewards products
• February 2014: Launched high - yield suite of checking and savings rewards products – Free: No monthly service fee; no minimum balance required – Rewards: High Interest (2% up to $10,000); or Cash Back (up to $7.00 per month); or iTunes or Amazon Credits – Refunds: ATM refunds up to $12.00 per mon
Slide 25: Kasasa
Kasasa A video was viewed of the Kasasa Product suite offered by First Keystone Community Bank. The television ads are currently airing on WBRE and WYOU. The ads were developed by BancVue and branded to First Keystone Community Bank, the wholly-owned subsidiary of First Keystone Corporation.
Slide 26: Online Banking and Bill Pay
Features: – Manage your accounts from your personal computer 24/7 – View account balances in real time – Review Transactions – Transfer Funds between FKCB accounts – Pay bills and make loan payments, and set up recurring payments – Sign up and receive notice for e - Statements – Encrypted for your s
Slide 27: Mobile Banking
Mobile Banking Features: – Free benefit with First Keystone checking and savings accounts – Manage accounts around the clock from the convenience of your mobile phone or device – View account balances – Review Transaction History – Transfer Funds between FKCB accounts – Make loan payments – Encrypte
Slide 28: Mobile Remote Deposit
Features: – Deposit checks 24/7 with your mobile phone or tablet device – Fast, easy, and convenient – Encrypted for your security How: – Enroll in online banking, then download the free app for your Apple or Android device – Deposit checks from almost anywhere, any time - day or night – Snap. Tap.
Slide 29: Mobile Remote Deposit
Mobile Remote Deposit A customer information video was viewed on First Keystone Community Bank’s Mobile Remote Deposit product. It is currently posted on First Keystone’s website instructing customers on how to download and use the app. To view, go to www.fkcbank.com.
Slide 30: e-Statements
Features: – Save paper and the environment – Fast, free, and easy alternative to paper statements – Eliminate a paper trail – Reduce chances of fraud and identity theft – Arrive faster than paper statements – Easy access to previous statements – Ability to download for permanent storage
Slide 31: Debit Cards
Debit Cards Features: – Free Visa debit card accepted around the globe and online – Use your debit card to qualify for rewards with the free Kasasa Cash, Kasasa Cash Back and Kasasa Tunes checking accounts – Safer than carrying cash – More convenient than checks – 24/7 access to your money via ATMs
Slide 32: Business Cash Management Product Suite
Business Cash Management Product Suite Merchant Card Services: – FKCB provides credit and debit card merchant services to retailers, service providers, and anyone accepting debit and credit cards for payment ACH Services: – Employee Direct Deposit of payroll – payroll funds are deposited directly in
Slide 33: Business Cash Management Product Suite
Business Cash Management Product Suite Remote Deposit Capture – Make deposits from your office 24/7 with a check scanner, PC and high speed internet connection – Reduce transportation risks and costs – Increase operational efficiency Online Banking – Available for business customers
Slide 34: Slide 34
Slide 35: Looking to the Future
Looking to the Future The Board and Senior Management are committed to upholding the independent spirit and progressive attitude of the Bank’s first CEO, Mordecai William Jackson By leveraging the need for growth and prosperity with a continuing focus on serving the needs of its customers, First Key
Slide 36: Matt Mensinger, Senior Vice-President, Director of Lending
Matt Mensinger Senior Vice - President Director of Lending
Slide 37: Condensed Consolidated Statements of Income
FIRST KEYSTONE CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME ( Amounts in thousands) For the twelve months ended December 31 , 2013 INTEREST INCOME Interest and fees on loans $20,471 Interest and dividends on investment securities 10,472 Interest on deposits in banks 18 TOTA
Slide 38: Net Outstanding Loans
$0 $100,000 $200,000 $300,000 $400,000 $500,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $229,972 $230,917 $248,086 $371,557 $403,172 $401,375 $403,950 $410,066 $427,124 $439,999 $481,071 NET OUTSTANDING LOANS
Slide 39: Who made it happen?
Who made it happen ? First Keystone Community Bank: 1. Board of Directors 2. Advisory Board Members 3. Senior Management 4. Trust Department 5. The Loan Officers 6. Operations Staff 7. Customer Service Representatives 8. Tellers 9. Our Own Customers
Slide 40: What types of loans were originated?
What types of loans were originated? Commercial Loans - $106,522,802 Residential Loans - $34,176,152 Consumer Loans - $10,936,424
Slide 41: When during the year did the loans close?
When during the year did the loans close? $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000 3/31/2014 6/30/2014 9/30/2014 12/31/2014
Slide 42: Where did we loan the money?
Where did we loan the money? We extended monies to individuals, families, businesses, schools, municipalities, churches, and non - profit organizations in the greater Lewisburg, Danville, Bloomsburg, Berwick, Nescopeck, Shickshinny, Wilkes - Barre, Dallas, and Stroudsburg areas.
Slide 43: Why did we loan the money?
Why did we loan the money? 1. Grow the balance sheet and increase gross interest income. 2. Support the community and the local economy.
Slide 44: How did we do it?
How did we do it? 1. Brought in new relationships. 2. Kept loan run - off to the lowest it has been in 15 years. 3. Earned trust by being a part of the community through volunteering. 4. Met all of our customers’ needs.
Slide 45: Our Story
Our Story: “First Keystone Community Bank grew the loan portfolio by 9.3% by meeting the financing needs of the community it serves while assisting in growing the local economy.”
Slide 46: Tools for another great year in 2015
T ools for another great year in 2015 : 1. Personnel 2. Policy 3. Products
Slide 47: Trust and Financial Services Team
First Keystone Community Bank Trust and Financial Services Team John O’Reilly Rebecca Hooper Wendy Bacher Cindy Thorne Dan Fuhr Trust and Financial Services 5/6/2015 47
Slide 48: Trust and Financial Services
5/6/2015 48 Trust and Financial Services
Slide 49: Trust and Financial Services: MainStreet Advisors
Trust and Financial Services 5/6/2015 49 Our Firm Founded in 2003, MainStreet Advisors is a Chicago-based Investment Advisory Firm registered with the Securities and Exchange Commission (SEC). We are a full-service, independent investment advisory firm committed to providing high quality advisory se
Slide 50: Trust and Financial Services
Trust and Financial Services 5/6/2015 50
Slide 51: Trust and Financial Services
Trust and Financial Services 5/6/2015 51
Slide 52: Trust and Financial Services
Trust and Financial Services 5/6/2015 52
Slide 53: Trust and Financial Services
Trust and Financial Services 5/6/2015 53
Slide 54: Trust and Financial Services
Trust and Financial Services 5/6/2015 54
Slide 55: Trust and Financial Services
Trust and Financial Services 5/6/2015 55
Slide 56: Thank You For Attending!
THANK YOU FOR ATTENDING! Our Key To a great bank is you!