First Keystone Corp. · OTC:FKYS
First Keystone — Shareholder Meeting (June 2024)
41 slides from First Keystone's shareholder meeting presentation, Jun 5, 2024
Slide 1: Annual Shareholders' Meeting May 30, 2024
Annual Shareholders’ Meeting May 30, 2024
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: First Keystone Corporation Board of Directors
First Keystone Corporation Board of Directors
Slide 4: First Keystone Corporation Director Emeriti
First Keystone Corporation Director Emeriti DR. JOSEPH B. JEROME F. FABIAN CONAHAN, JR ROBERT E. BULL JOHN G. GERLACH
Slide 5: Robert A Bull, Chairman of the Board
Robert A Bull Chairman of the Board 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 ava
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) 2023-2022 2021 2020 2019 SUMMARY OF OPERATIONS Interest income $56,988 $46,413 $42048 $39,567 $38,527 Interest expense 27,872 8,913 5,148 6,360 10,243 Net interest income 29,116 37,500 36,900 33,207 28,284 (Credit) provision for loan
Slide 8: Loans and Deposits 2022 vs 2023
LOANS 2022 2023 # OF NEW LOANS TOTAL NEW LOANS 206,719) $155,435) DEPOSITS 2022 2023 # OF NEW CORE DEPOSITS 909 ] & TOTAL NEW CORE DEPOSITS 150) 65,005)
Slide 9: How We Generated Income in 2023 vs 2022
How We Generated Income in 2023 vs 2022: 68% $42,747 |BO% $35,372 Interest and Fees ‘on Loans @ 2023 $63,144 @ 2022 $51,744 22% $14,202 10% 10% EEE $6,195 Interest and Other Income Dividends on Securities and Stock INCOME STATEMENT IN GRAPHIC FORM MAJOR COMPONENTS OF OTHER INCOME 2022 2023 ATM FEES
Slide 10: How We Used Our Income in 2023 vs 2022
27% $17,108 Paid to Depositors Borrowing Costs How We Used Our Income in 2023 vs 2022: @ 2023 $63,144 ™@ 2022 $51,744 0, Th $4,327 8% $4,023 % 0% -1% $684 $(217) $(264) Provision/ Computers, owner Income Credit for Employees Buildings Ovethead Tax Profit Loan Losses & Equipment Expense Dollars in th
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 2019 2020 2021 2022 2023 $621,598 $684,132 $736,839 $807,169 $873,677 $306,810 $312,537 $413,805 $419,164 $358,243 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% 2019 2020 2021 2022 2023 4.78% 4.63% 4.49% 4.41% 4.90% 3.45% 3.05% 2.61% 3.02% 4.02% 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 2019 2020 2021 2022 2023 $583,740 $658,889 $807,970 $794,742 $746,747 $157,379 $95,791 $89,918 $141,450 $230,991 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% 2019 2020 2021 2022 2023 1.14% 0.75% 0.39% 0.66% 2.29% 2.28% 1.48% 2.23% 2.58% 4.66% Deposits Borrowings Liability Costs | Deposit and Borrowing Costs
Slide 15: Net Interest Spread and Net Interest Margin
1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 2019 2020 2021 2022 2023 2.95% 3.25% 3.08% 2.96% 1.79% 3.23% 3.46% 3.22% 3.19% 2.38% Net Interest Spread Net Interest Margin Net Interest Spread and Net Interest Margin (tax equivalent)
Slide 16: Net Income After Taxes, Tax Expense and Net Securities Gains/Losses
$(2,000) $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 2019 2020 2021 2022 2023 $10,227 $11,837 $14,688 $14,024 $5,560 $1,114 $1,577 $2,321 $2,294 $684 $911 $(58) $323 $(846) $(118) Net Income After Taxes Tax Expense Net Securities Gain/Loss Net Income After Taxes, Tax Expense & Net
Slide 17: FKC's Franchise Value
FKC’s Franchise Value ➢ History of solid investor returns ➢ Dividend Yield of 7.00% at 12/31/2023 ➢ Historically strong capital position ➢ Investor-focused dividend policy ➢ Consistent financial performance ➢ Efficiency Ratio of 82.00% at 12/31/2023 ➢ Community focused banking strategies ➢ Economic
Slide 18: 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 19: 2023: A Year of Challenges
2023: A Year of Challenges, Commitment to Community, and Corporate Culture Truly a challenging year for the Banking industry as a whole as well as for your Bank, First Keystone Community Bank Two major challenges: ➢ Bank failures – Silicon Valley Bank (CA), followed by Signature Bank (NY), First Rep
Slide 20: What sets us apart?
What sets us apart? ➢ First Keystone Community Bank is an FDIC Insured community bank ➢ According to the FDIC – “Since 1933, no depositor has ever lost a penny of their FDIC-insured funds” ➢ Relationship-based business model committed to building long-term trust with our customers ➢ Well positioned
Slide 21: What sets us apart?
What sets us apart? ➢ Our strategic plan prioritizes safety and soundness, profitability and growth – in that order ➢ Adhere to established banking practices “Yesterday’s Traditions…..” ➢ Our loan portfolio consists of consumers, and small businesses in diverse industries, in our market area: Columb
Slide 22: 2023: A Year of Challenges, Commitment to Community and Corporate Culture
2023: A Year of Challenges, Commitment to Community and Corporate Culture ➢Federal Reserve increased interest rates 11 times for a total of 5.25% in 17 months ➢ Increased interest expense: Deposits and Borrowing expense ➢ Deposits decreased as stimulus money was being utilized by customers resulting
Slide 23: 2023: Strategies Executed Affecting the Balance Sheet
2023: A Year of Challenges, Commitment to Community, and Corporate Culture ➢Executed specific strategies affecting the balance sheet, designed to enhance net income over time ➢Commercial loans repricing to increased rates and yields, and new loans continue to be booked at market rates ➢We continue o
Slide 24: 2023: Fraud Prevention, Digital Banking and New Branch
2023: A Year of Challenges, Commitment to Community, and Corporate Culture ➢ FKCB dealt with challenges by continuing to do what true community banks do best – we take care of our customers and our communities ➢ Expanded our Fraud Department and provide education to our employees and customers by la
Slide 25: 1503 Linden Street, Bethlehem PA
1503 Linden Street, Bethlehem PA
Slide 26: New Checking and Mortgage Products
2023: A Year of Challenges, Commitment to Community, and Corporate Culture ➢ We launched two new checking account products: ➢ Keystone First checking account ➢ Geared toward youth ages 13-17 ➢ Provides a transactional account and their first VISA debit card ➢ Designed to teach financial responsibili
Slide 27: Commitment to Community
Commitment to Community ➢ FKCB provided Sponsorships and Donations to various schools and non-profit agencies throughout our communities. ➢ Examples include various fundraising walks and events, arts and food festivals, YMCAs, little leagues and school sports teams, holiday events, economic groups,
Slide 28: 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. ➢ Throughout the year, our employees donated $9,896 of their own funds during Denim Days, support
Slide 29: Prirst
Prirst KEYSTONE CORPORATION §€ one of the greatest gifts you can give is your time 99 > “ Everyone can be great, because everyone can Serve 99
Slide 30: Experienced Employees
Experienced Employees ➢Executive Management Team, picture below, has 142 combined years of service in the banking industry. ➢Experience ranges from frontline teller and customer service to commercial lending, accounting and finance, information technology, deposit operations, credit analysis and und
Slide 31: Executive Management 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 43 years 31 years Teller, CSR, Acctg. Clerk, Commercial Loan Officer, Director of Lending, Chief Operat
Slide 32: Depth of Bench
Depth of Bench We are proud to have 14 employees with us for 30 years or more! 40+ years: Donna Keefer, Sherri Sitler, Brenda Grasley, Susan Slusser 30+ years: Bonnie Nevel, Tina Roth, Diane Rosler, Fran Seward, Lee Hess, Jodi Alley Cheryl Wynings, Kim Shiner, Sandy Cole, Pam Wolford AND, and additi
Slide 33: Employees by Years of Service
40+ years Susan Slusser 30-39 years Brenda Grasley Sandy Cole Sherri Sitler Lee Hess Donna Keefer Kim Shiner Cheryl Wynings Jodi Alley Fran Seward Diane Rosler Tina Roth Bonnie Nevel Pamela Wolford 20-29 years Alisha Kishbaugh Cynthia Brannon Justine Kishbaugh Rebecca Hooper Sara Talanca Kristi McCl
Slide 34: Education and Recognition
Education and Recognition ➢ We believe in employee development and support their education via in-house and externally-provided webinars on many pertinent subjects such as cyber-security, compliance and regulatory topics and professional development. ➢ We support and encourage attendance at a wide v
Slide 35: Education and Recognition
Education and Recognition Columbia Montour Chamber of Commerce Leadership Central Penn ➢Brent Eckart, Computer Operations Supervisor ➢Melanie Fisher, AVP Credit Analyst II ➢Stacy Gordner, AVP Accounting Manager
Slide 36: Looking to the Future
Looking to the Future ➢ First Keystone Corporation and First Keystone Community Bank are at an inflection point in our history. ➢ After successfully navigating the prior financial crisis (2008-2010) and the Covid-19 pandemic, FKCB and many other community banks face the challenge of an uncertain fut
Slide 37: Looking to the Future
Looking to the Future ➢ Our goal is to evolve without losing the values that have made the Bank successful. ➢ Profitability and growth are primary and competing goals. Driving efficiencies throughout the Bank, though important, will be weighed against the ongoing strong needs to invest and enhance r
Slide 38: Keys to our Success: Mission Statement
Keys to our Success are expressed in our Mission Statement First Keystone Corporation and First Keystone Community Bank will be the independent financial services provider of choice to its customers and communities that it serves by providing quality, cost effective, customer focused financial servi
Slide 39: Commitment to You
Commitment to You ➢ This year is an exciting year for your Bank as we look forward to celebrating our 160- year anniversary on September 21, 2024. From our humble beginnings in a 400 square foot building located in downtown Berwick, you have helped us prosper and grow, providing banking services to
Slide 40: Commitment to You
Commitment to You The Board of Directors, management and the entire staff are firmly focused on increasing value for our customers, our communities and our shareholders. Thank you for your confidence and continued support of First Keystone Corporation.
Slide 41: Thank you for attending our May 30, 2024 Annual Shareholders' Meeting!
Thank you for attending our May 30, 2024 Annual Shareholders’ Meeting!