Slide 1: First Keystone Corporation Annual Stockholders' Meeting May 4, 2017
First Keystone Corporation Annual Stockholders’ Meeting May 4, 2017
Slide 2: Welcome
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 a
Slide 3: First Keystone Community Bank Nescopeck Branch Vault
First Keystone Community Bank Nescopeck Branch Vault
Slide 4: First Keystone Community Bank Nescopeck Branch Vault
First Keystone Community Bank Nescopeck Branch Vault
Slide 5: Securing our Future
Jeff Wozniak VP, Information Security Officer, IT Manager Securing our Future
Slide 6: Cybercriminals – AKA: Hackers
Cybercriminals – AKA: Hackers Any individual or group that uses technology for the purpose of committing a crime…
Slide 7: Types of Social Engineering: Phishing
Type of Social Engineering - The use of e - mails that appear to originate from a trusted source to trick a user into entering valid credentials at a fake website. Phishing People are the biggest vulnerability!
Slide 8: Phishing
1 in 14 computer users are clicking on phishing emails! Phishing Average Identity Theft Loss is approximately $8,000.
Slide 9: Norse attack map
NORSE ATTACK ORIGINS © —~ ATTACK TARGETS © » 7 Wm Country 51% Hong Kong 39 Spain 32 = Thailand 2 Argentina 2B Canada 21 Norway 20 = Portugal 7 usta 17 Bulga » ATTACK TYPES O Timestamp Service ep : emia ses eatanst taptninbiceld tae Oe amar Ste ots as unkown som imssghs
Slide 10: How bad is it?
2016 Statistics: ( Source: 2016 Data breach Investigations Report) - 42,000 reported Cybersecurity incidents. - 1,935 reported breaches - #1 target? How bad is it?
Slide 11: .Bank
.Bank
Slide 12: Speaking of Email...
Speaking of Email...
Slide 13: EMV – Europay, Mastercard, and Visa
EMV – ( Europay , Mastercard , and Visa )
Slide 14: Tokenization
Tokenization
Slide 15: CardValet
=> S CardValet , % 2, ' Your Card, On Your Terms) ~, e\ iy ANDROID APP ON | 4. Download on the | >> Google Play @ AppStore
Slide 16: Security vs. Agility
Security vs. Agility
Slide 17: Top Recommendations to Stay Safe: Email
- Email: 1) Look at the sender address. Spelling mistakes? jwozniak@fkc.bank.com jwzniak@fkbank.net 2) Do you know the sender? 3) Is it to good to be true? 4) Is the email marked “urgent”? 5) Hover over the link – Does the domain match? 6) When in doubt? Skip the link! Top Recommendations to Stay Sa
Slide 18: Top Recommendations to Stay Safe
- Patch your computer. - Windows, Java, Adobe - Use antivirus. - Beware of popups. Top Recommendations to Stay Safe:
Slide 19: Matthew Prosseda, President and CEO
Matthew Prosseda President and CEO
Slide 20: Income Statement in Graphic Form
INCOME STATEMENT IN GRAPHIC FORM How we generated $39,030 in income: INCOME ON LOANS EMPLOYEES Dollars in thousands
Slide 21: Average Total and Earning Assets
$812,980 $838,560 $900,952 $954,593 $985,089 $747,579 $765,696 $825,683 $881,892 $910,637 $725,000 $775,000 $825,000 $875,000 $925,000 $975,000 $1,025,000 2012 2013 2014 2015 2016 Average Total Assets Average Earning Assets Average Total and Earning Assets (amounts in thousands)
Slide 22: Average Loan and Investment Balances
$423,580 $436,040 $468,470 $509,605 $518,145 $321,208 $321,627 $356,043 $370,061 $389,176 $280,000 $330,000 $380,000 $430,000 $480,000 $530,000 $580,000 2012 2013 2014 2015 2016 Loans Investments Average Loan and Investment Balances (amounts in thousands)
Slide 23: Loan and Investment Yields
5.45% 4.83% 4.51% 4.35% 4.33% 4.58% 3.85% 3.28% 3.14% 2.97% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 2012 2013 2014 2015 2016 Loan Yields Investment Yields Loan and Investment Yields (tax equivalent)
Slide 24: Loan and Investment Income
$23,103 $21,081 $21,127 $22,143 $22,420 $14,493 $12,252 $11,663 $11,638 $11,564 $10,000 $15,000 $20,000 $25,000 2012 2013 2014 2015 2016 Loan Income Investment Income Loan and Investment Income (tax equivalent) (amounts in thousands)
Slide 25: Average Interest Bearing Deposits and Borrowings
$538,549 $569,235 $566,243 $583,356 $609,219 $86,839 $75,296 $129,788 $151,607 $139,402 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2012 2013 2014 2015 2016 Average Interest Bearing Deposits Average Borrowings Average Interest Bearing Deposits and Borrowings (amounts in thousands)
Slide 26: Deposit and Borrowing Costs
0.85% 0.64% 0.52% 0.54% 0.56% 2.25% 1.77% 1.15% 1.19% 1.33% 0.00% 1.00% 2.00% 3.00% 2012 2013 2014 2015 2016 Deposits Borrowings Liability Costs | Deposit and Borrowing Costs
Slide 27: Deposit and Borrowing Expense
$4,556 $3,623 $2,954 $3,159 $3,425 $1,958 $1,331 $1,498 $1,807 $1,857 $0 $1,000 $2,000 $3,000 $4,000 $5,000 2012 2013 2014 2015 2016 Deposit Interest Borrowing Interest Interest Expense | Deposit and Borrowing Expense (amounts in thousands)
Slide 28: Net Interest Margin
4.24% 3.79% 3.45% 3.30% 3.18% 3.62% 3.54% 3.43% 3.36% 3.26% 3.00% 3.30% 3.60% 3.90% 4.20% 2012 2013 2014 2015 2016 First Keystone Community Bank Peer Banks Net Interest Margin – Source: FFIEC UBPR
Slide 29: Non-Interest Income and Expense
$5,120 $4,905 $5,146 $5,566 $5,623 $19,587 $19,597 $21,208 $21,022 $20,348 $0 $5,000 $10,000 $15,000 $20,000 $25,000 2012 2013 2014 2015 2016 Total Non-Interest Income Total Non-Interest Expense *Before Net Investment Securities Gains and FHLB Prepayment Penalties Non - Interest Income and Expense*
Slide 30: Net Income After Taxes
$10,170 $10,273 $10,211 $9,172 $9,472 $9,000 $9,250 $9,500 $9,750 $10,000 $10,250 $10,500 2012 2013 2014 2015 2016 Net Income After Taxes (amounts in thousands)
Slide 31: Return on Assets
1.25% 1.23% 1.13% 0.97% 0.94% 1.16% 1.06% 1.02% 0.93% 0.92% 0.85% 0.95% 1.05% 1.15% 1.25% 2012 2013 2014 2015 2016 First Keystone Community Bank Peer Banks Return on Assets – Source: FFIEC UBPR
Slide 32: Return on Equity
10.07% 10.46% 10.40% 9.07% 8.77% 11.09% 10.06% 9.13% 8.33% 8.30% 7.50% 8.50% 9.50% 10.50% 11.50% 2012 2013 2014 2015 2016 First Keystone Community Bank Peer Banks Return on Equity – Source: FFIEC UBPR
Slide 33: Earnings and Dividends per Share
$1.86 $1.87 $1.84 $1.64 $1.68 $1.01 $1.04 $1.05 $1.08 $1.08 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 2012 2013 2014 2015 2016 Earnings Dividends Earnings and Dividends per Share
Slide 34: Income Statement
Income Statement 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, 2017 3 Months Ended March 31, 2016 %Change $6,478 1,538 $8,016 83 5,263 $2,670 384 $2,286 (2.7) 18.3 0.7
Slide 35: Balance Sheet
Balance Sheet Cash & Cash Equivalents 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 $ 11,436 400,011 517,
Slide 36: 10 Year Total Return Performance
40 90 140 190 240 12/31/06 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 First Keystone Corporation NASDAQ Composite SNL Bank $500M-$1B First Keystone Corporation – 10 year Total Return Performance
Slide 37: Thank You for Attending!
THANK YOU FOR ATTENDING! Our Key To a great bank is you!
Slide 38: Robert E. Bull, Chairman
Robert E. Bull Chairman q - 7