First Keystone Corp. · OTC:FKYS
First Keystone — Shareholder Meeting (May 2021)
40 slides from First Keystone's shareholder meeting presentation, May 12, 2021
Slide 1: Annual Shareholders' Meeting May 6, 2021
Annual Shareholders’ Meeting May 6, 2021
Slide 2: Annual Meeting of Shareholders
ANNUAL MEETING OF SHAREHOLDERS I. Introduction – Robert A. Bull, Chairman II. Call to Order III. Welcome IV. Ascertain Presence of a Quorum – David R. Saracino, Secretary V. Proposal No. 1 – Election of Directors VI. Proposal No. 2 – Ratification of Independent Auditors VII. Management Presentations
Slide 3: Introduction
Introduction COVID-19, and the resulting guidance for Social Distancing, has created the necessity of holding our second Virtual Annual Shareholders Meeting. We appreciate your understanding of the required change and we miss being with you in person. Due to this change, our presentation today w
Slide 4: First Keystone Corporation Board of Directors
First Keystone Corporation Board of Directors
Slide 5: First Keystone Corporation Director Emeriti
First Keystone Corporation Director Emeriti
Slide 6: Diane C.A. Rosler, Chief Financial Officer
Diane C.A. Rosler Senior Vice President, Chief Financial Officer 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
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS (Dollars in thousands, except per share data) 2020 2019 2018 2017 2016 SUMMARY OF OPERATIONS Interest income $39,567 $38,527 $35,573 $32,268 $ 31,643 Interest expense 6,360 10,243 8,620 6548 5,282 Net interest income 33,207 28,284 26,953 25,720 26,361 Provision for loan losses 1
Slide 8: Loans, Deposits and Net Income Performance
= ee : LOANS 2019 2020 DEPOSITS 2019 2020 # OF NEW LOANS # OF NEW CORE DEPOSITS & Sica SS P10,927] TovBCREWEAROEEOSTS Sp 350,497) 2020 LOAN PORTFOLIO BREAKDOWN 2020 DEPOSIT BREAKDOWN pr @ COMMERCIAL @ HOME EQUITY @ CORE DEPOSITS @ TIME DEPOSITS i MORTGAGES CONSUMER & OTHER (CHECKING, SAVINGS (CERTIF
Slide 9: How we generated revenue
How we generated $45,579 in revenue: INCOME STATEMENT IN GRAPHIC FORM MAJOR COMPONENTS OF OTHER INCOME 2019 2020 rar 2 @ 4k SECURITIES INCOME OTHE! INCOI E dl i Dollars in thousands yw » z < ° 8 z ° C = ° .e] z ') *
Slide 10: How we used our revenue
ees How we used our $45,579 in revenue: — 2 « E 3% I 3% & fo fo ° $1,577 $1,414 $1,200 a 9 a = 2 w ° w E F = 3 Ou $2. ira i rae 29a ° Q Sxa zo 3a & ° a FS 255 ao 229 n w w > ° = a = wi ad Fy Ug Dollars in thousands
Slide 11: Average Loan and Investment Balances
$200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 $550,000 $600,000 $650,000 $700,000 2016 2017 2018 2019 2020 $518,145 $536,054 $584,960 $621,598 $684,132 $389,176 $388,488 $341,826 $306,810 $312,537 Loans Investments Average Loan and Investment Balances (amounts in thousands)
Slide 12: Loan and Investment Yields
2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 2016 2017 2018 2019 2020 4.33% 4.30% 4.49% 4.78% 4.63% 2.97% 3.11% 3.47% 3.45% 3.05% Loan Yields Investment Yields Loan and Investment Yields (tax equivalent)
Slide 13: Average Interest-Bearing Deposits and Borrowings
$- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2016 2017 2018 2019 2020 $609,219 $607,222 $596,401 $583,740 $658,889 $139,402 $154,892 $165,341 $157,379 $95,791 Average Interest Bearing Deposits Average Borrowings Average Interest-Bearing Deposits and Borrowings (amounts in thousands)
Slide 14: Deposit and Borrowing Costs
0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 2016 2017 2018 2019 2020 0.56% 0.70% 0.87% 1.14% 0.75% 1.33% 1.50% 2.07% 2.28% 1.48% Deposits Borrowings Liability Costs | Deposit and Borrowing Costs
Slide 15: Net Interest Spread and Net Interest Margin
2.50% 2.60% 2.70% 2.80% 2.90% 3.00% 3.10% 3.20% 3.30% 3.40% 3.50% 2016 2017 2018 2019 2020 3.03% 2.93% 2.98% 2.95% 3.25% 3.16% 3.09% 3.18% 3.23% 3.46% Net Interest Spread Net Interest Margin Net Interest Spread and Net Interest Margin (tax equivalent)
Slide 16: Net Income After Taxes, Tax Expense and Securities Gains/Losses
$(2,000) $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 2016 2017 2018 2019 2020 $9,472 $8,648 $9,211 $10,227 $11,837 $1,845 $1,455 $459 $1,114 $1,577 $1,764 $938 $(65) $911 $(58) Net Income After Taxes Tax Expense Net Securities Gain/Loss Net Income After Taxes, Tax Expense & Net Securities Gains/(
Slide 17: Income Statement
3 Months Ended March 31, 2021 3 Months Ended March 31, 2020 % Change Net Interest Income 8,970 $ 7,376 $ 21.6% Plus Non-Interest Income* 1,875 983 90.7% Equals Operating Revenue 10,845 8,359 29.7% Less Loan Loss Provision 135 194 -30.4% Less Non-Interest Expense 6,197 5,915 4.8% Equals Pre-Tax Incom
Slide 18: Balance Sheet
March 31, 2021 March 31, 2020 % Change Cash & Cash Equivalents 37,141 $ 9,045 $ 310.6% Securites & Restricted Stocks 391,583 291,797 34.2% Net Loans 714,942 654,437 9.2% Premises & Equipment, Net 18,454 19,244 -4.1% Other Assets 53,401 52,684 1.4% Total Assets 1,215,521 $ 1,027,207 $ 18.3% Non-Inter
Slide 19: FKC's Franchise Value
FKC’s Franchise Value History of solid investor returns Dividend Yield of 5.25% at 12/31/2020 & 4.40% at 3/31/2021 Historically strong capital position Investor-focused dividend policy Consistent financial performance Efficiency Ratio of 60.11% at 12/31/2020 & 55.40% at 3/31/2021 Commu
Slide 20: Elaine A. Woodland, President and CEO
Elaine A. Woodland 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 available. These for
Slide 21: Making Connections, Corporate Culture and Commitment
Making Connections, Corporate Culture and Commitment First Keystone Community Bank is committed to connecting with our communities, each other, and building a culture that benefits our employees, customers, and shareholders. While we continued our focus in 2020 on meeting the challenges of increasin
Slide 22: Unique Challenges
Unique Challenges Prime Lending Rate dropped 1.50% in two decreases: March 4 and March 16, 2020 March 9, 2020 DOW dropped 2,200 points “Stay at Home” order issued by Governor Wolf on March 23, 2020
Slide 23: Overcoming Unique Challenges: Teamwork
Overcoming Unique Challenges TEAMWORK BCP Team met regularly to execute our Business Continuity and Pandemic plans while addressing PA Government, PA Department of Health and CDC guidelines, and regulations Elaine A. Woodland Diane Rosler Mark McDonald Jeff Wozniak Jonathan Littlewood Rebecca Hoope
Slide 24: Management Banking Experience
Name/Title Overall Banking Experience Number of years with First Keystone Community Bank Prior Positions held at First Keystone Community Bank Prior Experience Elaine A. Woodland President and CEO 40 years 28 years Teller, CSR, Acctg Clerk, Commercial Loan Officer, Director of Lending, COO Credit An
Slide 25: Overcoming Unique Challenges
Overcoming Unique Challenges Measures put in place to help keep employees and customers safe included: Disinfectant supplies inventoried Common high traffic areas identified Air filters upgraded in all 19 offices Maximum capacity of all buildings calculated and publicly posted on entrance
Slide 26: Covid-19 Customer Initiatives
Covid-19 Customer Initiatives Marketing and Social Media initiatives were implemented to provide customer updates and education Provided fraud and scams education via social media Launched Chat Box on our Website to enable customers to ask questions and receive immediate responses Increased
Slide 27: Covid-19 Customer Initiatives
Covid-19 Customer Initiatives Waived early withdrawal penalties for CDs Provided uninterrupted customer service through drive-thru, ATMs, and night deposit as well as Online Banking, Mobile, and Telephone Banking In-person customer service provided on an appointment basis Processed and obtai
Slide 28: Covid-19 Employee Impact
Covid-19 Employee Impact Managers reviewed personnel, split and divided staff for employee and Bank safety and security Work from home alternative made available for employees - following Gov. Wolf and Dept. of Health guidance Provided a Telecommuting agreement for all employees working from h
Slide 29: Awards and Recognition
Awards and Recognition The PA Bankers Association awarded three of our team members with the “Highlighting Young Professionals’ Excellence” award in three different categories.
Slide 30: Awards and Recognition: PPP Award of Excellence
Awards and Recognition PPP Award of Excellence honoring First Keystone Community Bank September 25, 2020 OVER 481 Loans Approved OVER $25,050,294 Reinvested OVER 4,294 Jobs Saved The Pennsylvania Association of Community Bankers awarded First Keystone with the PPP Award of Excellence for providing S
Slide 31: Awards and Recognition
Awards and Recognition Lauren Duane, Assistant Vice President, Business Deposit Specialist, has graduated with honors from the 2020 Pennsylvania Bankers Association (PA Bankers) Advanced School of Banking. PA Bankers Advanced School of Banking is a three-year program Teaches financial services k
Slide 32: Awards and Recognition
Awards and Recognition The PA Bankers Association awarded Elaine A. Woodland, President and CEO, with the Recognition of Excellence, Patricia A. Husic, Woman of Influence Award. This is awarded to a woman who has achieved success within a leadership role and displays courage, values and ethics as we
Slide 33: Commitment to Community
Commitment to Community First Keystone Community Bank is YOUR community bank We are passionate about giving generously to the communities we serve, in both corporate and individual employee donations Our employee Denim Days and CONNECT donations in 2020 enabled us to provide $6,500 to local food
Slide 34: Commitment to Community
Commitment to Community Our Salem Township Community Office participating in the community’s Trunk or Treat.
Slide 35: Commitment to Community
Commitment to Community Our Mountainhome Community Office donating to the Mountainhome United Methodist Church Food Bank.
Slide 36: Commitment to Community
Commitment to Community Our Main Office displayed in blue lights to participate in the nationwide #LightItBlue campaign in support of our healthcare workers, first responders, and all essential workers who are putting themselves on the front line to serve our communities during the COVID-19 outbreak
Slide 37: Commitment to You
Commitment to You Looking to the future! For more than 156 years, we have been committed to listening to our customers’ needs That commitment remains true today, and will remain into the future Our role as bankers is more important now than ever as we strive to provide financial access, suppor
Slide 38: Keys to our Success: Mission Statement
Keys to our Success are expressed in our Mission Statement Our mission is to be the financial provider of choice of a broad selection of quality banking and related financial services, including trust services, to individuals, businesses, and households in the Bank’s service area and thereby deliver
Slide 39: Looking to the Future
Looking to the Future Onward and upward to Building the Good Life!
Slide 40: Thank you for attending our Annual Shareholders' Meeting
Thank you for attending our May 6th, 2021 Annual Shareholders’ Meeting!