Slide 1: Your Key To Progress – Annual Shareholder Meeting
First Keystone Corporation 5/20/2013 1 May 16, 2013 Your Key To Progress Annual Shareholder Meeting
Slide 2: Matthew Prosseda, President and CEO
First Keystone Corporation 5/20/2013 2 Annual Shareholder Meeting Matthew Prosseda President and CEO
Slide 3: Income Statement in Graphic Form
Income Statement in Graphic Form How we generated $40,869 in income: INCOME ON Loa! $22,599 | 557° INVESTMENT INCOME. $12,337 30% ‘OTHER INCOME $5,933 | SB | How we used our $40,869 in income: LS PAID To DEPOSITORS $4,556 1% B $10,413 | 25% INCOME TAX EXPENSE. PROFIT $10,170 35>
Slide 4: Average Earning Assets
Average Earning Assets 5/20/2013 4 First Keystone Corporation $391,863 $408,448 $410,427 $412,543 $423,580 $234,913 $253,319 $298,147 $321,837 $321,208 $230,000 $280,000 $330,000 $380,000 $430,000 $480,000 2008 2009 2010 2011 2012 Average Loan and Investment Balances Net Loans Investments
Slide 5: Asset Yields (tax equivalent)
Asset Yields (tax equivalent) 5/20/2013 5 First Keystone Corporation 6.55% 6.16% 6.01% 5.75% 5.45% 6.27% 5.84% 5.13% 4.83% 4.51% 4.00% 4.50% 5.00% 5.50% 6.00% 6.50% 7.00% 2008 2009 2010 2011 2012 Loan and Investment Yields (tax equivalent) Loan Yields Investment Yields
Slide 6: Interest Income (tax equivalent)
Interest Income (tax equivalent) 5/20/2013 6 First Keystone Corporation $25,683 $25,155 $24,666 $23,738 $23,103 $13,751 $14,574 $15,282 $15,559 $14,492 $10,000 $15,000 $20,000 $25,000 $30,000 2008 2009 2010 2011 2012 Loan and Investment Income (tax equivalent) Loan Income Investment Income
Slide 7: Average Total and Earning Assets
Average Total and Earning Assets 5/20/2013 7 First Keystone Corporation $700,611 $749,798 $819,625 $821,148 $812,980 $630,727 $680,224 $749,733 $748,785 $747,579 $470,000 $550,000 $630,000 $710,000 $790,000 $870,000 2008 2009 2010 2011 2012 Average Total and Earning Assets Average Assets Average Ear
Slide 8: Average Interest Bearing Liabilities
Average Interest Bearing Liabilities 5/20/2013 8 First Keystone Corporation $458,396 $500,850 $557,506 $558,321 $538,549 $101,349 $104,203 $101,366 $92,265 $86,839 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2008 2009 2010 2011 2012 Average Interest Bearing Deposits and Borrowings Depos
Slide 9: Liability Costs
Liability Costs 5/20/2013 9 First Keystone Corporation 3.03% 2.27% 1.63% 1.20% 0.85% 4.15% 4.03% 3.58% 2.91% 2.25% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 2008 2009 2010 2011 2012 Deposit and Borrowing Costs Deposits Borrowings
Slide 10: Interest Expense
Interest Expense 5/20/2013 10 First Keystone Corporation $13,908 $11,364 $9,111 $6,718 $4,556 $4,208 $4,201 $3,631 $2,687 $1,958 $0 $5,000 $10,000 $15,000 2008 2009 2010 2011 2012 Deposit and Borrowing Expense Deposit Costs Borrowing Costs
Slide 11: Net Interest Income (tax equivalent)
Net Interest Income (tax equivalent) 5/20/2013 11 First Keystone Corporation $21,410 $24,173 $27,234 $29,897 $31,082 $15,000 $20,000 $25,000 $30,000 $35,000 2008 2009 2010 2011 2012 Net Interest Income (tax equivalent)
Slide 12: Net Interest Margin
Net Interest Margin 5/20/2013 12 First Keystone Corporation 3.39% 3.55% 3.63% 3.99% 4.16% 3.00% 3.25% 3.50% 3.75% 4.00% 4.25% 4.50% 2008 2009 2010 2011 2012 Net Interest Margin
Slide 13: Non-Interest Income and Expense
Non - Interest Income and Expense 5/20/2013 13 First Keystone Corporation $4,194 $4,437 $4,795 $4,320 $5,120 $13,923 $15,594 $17,272 $17,695 $19,587 $0 $5,000 $10,000 $15,000 $20,000 $25,000 2008 2009 2010 2011 2012 Non - Interest Income and Expense* Interest Income Interest Expense *Before Gains on
Slide 14: Net Income
Net Income 5/20/2013 14 First Keystone Corporation $7,551 $7,937 $8,961 $9,907 $10,170 $7,000 $8,000 $9,000 $10,000 $11,000 2008 2009 2010 2011 2012 Net Income After Taxes Net Income
Slide 15: Income Measures
Income Measures 5/20/2013 15 First Keystone Corporation 10.72% 10.88% 10.98% 11.57% 10.19% 1.08% 1.06% 1.09% 1.21% 1.25% 1.00% 1.10% 1.20% 1.30% 10.00% 10.40% 10.80% 11.20% 11.60% 12.00% 2008 2009 2010 2011 2012 Return on Average Assets and Equity ROAE ROAA
Slide 16: Shareholder's Equity
Shareholder’s Equity 5/20/2013 16 First Keystone Corporation $70,449 $72,926 $81,585 $85,609 $99,834 $65,000 $70,000 $75,000 $80,000 $85,000 $90,000 $95,000 $100,000 $105,000 2008 2009 2010 2011 2012 Average Shareholder’s Equity Shareholder's Equity
Slide 17: Earnings and Dividends per Share
Earnings and Dividends per Share 5/20/2013 17 First Keystone Corporation $1.39 $1.46 $1.65 $1.82 $1.86 $0.89 $0.92 $0.93 $0.97 $1.01 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 2008 2009 2010 2011 2012 Earnings and Dividends per Share Earnings Dividends
Slide 18: Income Statement (in thousands)
Income Statement (in thousands) 5/20/2013 18 First Keystone Corporation Net Interest Income +Non - Interest Income =Operating Revenue - Loan Loss Provision =Pre - Tax Income - Income Tax Expense =Net Income Earnings Per Share March 31, 2013 December 31, 2012 %Change $6,598 1,522 $8,120 400 4,727 $2,
Slide 19: Balance Sheet (in thousands)
Balance Sheet (in thousands) 5/20/2013 19 First Keystone Corporation Cash Due From Banks Investment Securities Loans - Net Fixed Assets Other Assets Total Assets Liabilities and Capitals Non - Interest Bearing Deposits Interest Bearing Accounts Total Deposits Borrowed Funds Other Liabilities Capital
Slide 20: Kevin Miller, Chief Operating Officer
First Keystone Corporation 5/20/2013 20 Kevin Miller Chief Operating Officer Annual Shareholder Meeting
Slide 21: Your Key To Community Office Expansion
First Keystone Corporation 5/20/2013 21 Your Key To Community Office Expansion Annual Shareholder Meeting Kingston construction begins March 2012
Slide 22: First Keystone Corporation 5/20/2013 22 Annual Shareholder Meeting
First Keystone Corporation 5/20/2013 22 Annual Shareholder Meeting
Slide 23: First Keystone Corporation 5/20/2013 23 Annual Shareholder Meeting
First Keystone Corporation 5/20/2013 23 Annual Shareholder Meeting
Slide 24: First Keystone Corporation 5/20/2013 24 Annual Shareholder Meeting
First Keystone Corporation 5/20/2013 24 Annual Shareholder Meeting
Slide 25: First Keystone Corporation 5/20/2013 25 Annual Shareholder Meeting
First Keystone Corporation 5/20/2013 25 Annual Shareholder Meeting
Slide 26: First Keystone Corporation 5/20/2013 26 Annual Shareholder Meeting
First Keystone Corporation 5/20/2013 26 Annual Shareholder Meeting
Slide 27: Your Key To State of the Art Banking in Kingston
First Keystone Corporation 5/20/2013 27 Your Key To State of the Art Banking in Kingston Opened August 2012 Annual Shareholder Meeting
Slide 28: Kingston Deposit Numbers
First Keystone Corporation 5/20/2013 28 Kingston Deposit Numbers Annual Shareholder Meeting $34,534,641.21 $36,969,707.31 $42,879,627.79 $0.00 $5,000,000.00 $10,000,000.00 $15,000,000.00 $20,000,000.00 $25,000,000.00 $30,000,000.00 $35,000,000.00 $40,000,000.00 $45,000,000.00 $50,000,000.00 1-Jul-12
Slide 29: Your Key To New Opportunities – The Dallas Market
First Keystone Corporation 5/20/2013 29 Your Key To New Opportunities – The Dallas Market Annual Shareholder Meeting Opened March 18, 2013 Branch Manager Martin Leandri Address 2325 Memorial Highway Dallas, PA
Slide 30: First Keystone Corporation 5/20/2013 30 Annual Shareholder Meeting
First Keystone Corporation 5/20/2013 30 Annual Shareholder Meeting
Slide 31: First Keystone Corporation 5/20/2013 31 Annual Shareholder Meeting
First Keystone Corporation 5/20/2013 31 Annual Shareholder Meeting
Slide 32: Dallas Deposit Numbers
First Keystone Corporation 5/20/2013 32 Dallas deposit numbers Annual Shareholder Meeting 0.00 $1,106,822.79 0.00 200,000.00 400,000.00 600,000.00 800,000.00 1,000,000.00 1,200,000.00 1-Mar-13 1-Apr-13 1-May-13 Dallas
Slide 33: Dallas Public Opening Celebration
First Keystone Corporation 5/20/2013 33 Dallas Public Opening Celebration Saturday, June 8th from 9am - 12pm Annual Shareholder Meeting
Slide 34: Your Key To Shickshinny
First Keystone Corporation 5/20/2013 34 Your Key To Shickshinny Annual Shareholder Meeting
Slide 35: Your Key To Shickshinny
First Keystone Corporation 5/20/2013 35 Your Key To Shickshinny Annual Shareholder Meeting
Slide 36: Shickshinny demolition
First Keystone Corporation 5/20/2013 36 Shickshinny demolition Annual Shareholder Meeting
Slide 37: Shickshinny branch
First Keystone Corporation 5/20/2013 37 Shickshinny branch Annual Shareholder Meeting
Slide 38: First Keystone Corporation 5/20/2013 38 Annual Shareholder Meeting
First Keystone Corporation 5/20/2013 38 Annual Shareholder Meeting
Slide 39: Shickshinny potential
First Keystone Corporation 5/20/2013 39 Shickshinny potential Annual Shareholder Meeting
Slide 40: Your Key To Downtown Berwick
First Keystone Corporation 5/20/2013 40 Your Key To Downtown Berwick Annual Shareholder Meeting
Slide 41: Main office – new front entrance
First Keystone Corporation 5/20/2013 41 Main office – new front entrance. Annual Shareholder Meeting
Slide 42: Deposit Gains in 2013 as of May 10, 2013
First Keystone Corporation 5/20/2013 42 Annual Shareholder Meeting $842,911 - $15,262 $247,493 $6,509,704 $5,909,920 - $480,338 $409,732 $1,916,286 $1,351,136 - $775,469 - $2,609,364 $304,886 $5,085,704 $1,140,787 $156,091 $1,864,986 $1,106,823 -$4,000,000 -$2,000,000 $0 $2,000,000 $4,000,000 $6,000
Slide 43: Main office drive-thru
First Keystone Corporation 5/20/2013 43 Main office drive - thru Annual Shareholder Meeting
Slide 44: Main office back entryway showcase
First Keystone Corporation 5/20/2013 44 Main office back entryway showcase Annual Shareholder Meeting
Slide 45: Main office teller line
First Keystone Corporation 5/20/2013 45 Main office teller line Annual Shareholder Meeting
Slide 46: Main office new accounts offices
First Keystone Corporation 5/20/2013 46 Main office new accounts offices Annual Shareholder Meeting
Slide 47: Main office Branch Managers office
First Keystone Corporation 5/20/2013 47 Main office Branch Managers office Annual Shareholder Meeting
Slide 48: Main office front entrance
First Keystone Corporation 5/20/2013 48 Main office front entrance Annual Shareholder Meeting
Slide 49: Your Key To Financial Services
First Keystone Corporation 5/20/2013 49 Your Key To Financial Services Annual Shareholder Meeting
Slide 50: Financial Services Assets Under Management
First Keystone Corporation 5/20/2013 50 Annual Shareholder Meeting Financial Services Assets Under Management: Retail Non-deposit $ 30,000,000.00 Trust $140,000,000.00 Total Assets $170,000,000.00 2012 Net Income from Operations: Retail Non-deposit $ 121,820.55 Trust $ 262,003.28 Total $ 383,823.83
Slide 51: Your Key To Commercial and Consumer Lending
First Keystone Corporation 5/20/2013 51 Your Key To Commercial and Consumer Lending. Annual Shareholder Meeting Loans Net of Unearned Interest 2012 - $432,896,000 2011 - $415,995,000
Slide 52: Gross Loans Comparison
First Keystone Corporation 5/20/2013 52 Annual Shareholder Meeting Gross Loans Comparison
Slide 53: Your Key To Mortgage Lending
First Keystone Corporation 5/20/2013 53 Your Key To Mortgage Lending Annual Shareholder Meeting Gain on Sale of Loans 2012 - $1,016,000 2011 - $368,000
Slide 54: Residential Mortgage Active Pipeline
First Keystone Corporation 5/20/2013 54 Annual Shareholder Meeting Residential Mortgage Active Pipeline
Slide 55: Soon to be branch locations
First Keystone Corporation 5/20/2013 55 Annual Shareholder Meeting Soon to be 18 branch locations
Slide 56: Thank you for attending!
First Keystone Corporation 5/20/2013 56 Thank - you for attending! Our Key To a great bank is you! Stock Price 5 - 15 - 2013 - $ 26.00 12 - 31 - 2012 - $25.20 12 - 31 - 2011 - $20.50