First Keystone Corp. · OTC:FKYS
First Keystone — Shareholder Meeting (May 2022)
36 slides from First Keystone's shareholder meeting presentation, May 10, 2022
Slide 1: Annual Shareholders' Meeting May 5, 2022
Annual Shareholders’ Meeting May 5, 2022
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 Presentation
Slide 3: Introduction
Introduction ➢ COVID - 19, and the resulting guidance for Social Distancing, has created the necessity of holding our third 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
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, Senior Vice President, 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 ba
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS (Dollars in thousands, except per share data) 2021 2020 2019 2018 2017 “SUMMARY OF OPERATIONS. OSOSO~—S—SOSOSOSSS Interest income $42,048 $ 39,567 $ 38,527 $ 35,573 $ 32,268 Interest expense 5,148 6,360 10,243 8,620 6,548 Net interest income 36,900 33,207 28,284 26,953 25,720 Pr
Slide 8: Loans, Deposits and Performance 2020-2021
LOANS 2020 2021 # OF NEW LOANS: Piss] TOTAL NEW LOANS 20927) 222.57) 2021 LOAN PORTFOLIO BREAKDOWN 79% 14% Bua lM HOME EQUITY li CONSUMER & OTHER COMMERCIAL li MORTGAGES SBA (PPP) NET INCOME 2020 2021 PER SHARE @ & ANNUAL INCREASE DEPOSITS 2020 2021 # OF NEW CORE DEPOSITS. scat & TOTAL NEW CORE DEPO
Slide 9: How we generated $49,371 in income
How we generated $49,371 in income: INCOME STATEMENT IN GRAPHIC FORM MAJOR COMPONENTS OF OTHER INCOME 2 9 2020 2021 z 2 Bi9% ° $9,188 15% AVL ESSN ESET CARATS ap $2,183 z a $7,323 ° Ec TRUST DEPARTMENT $1,008 w Ew w . = gz a 9 39 zs fc CCNA: HOTS @& 4 nz of Dollars in thousands
Slide 10: How we used our $49,371 in income
How we used our $49,371 in income: 30% $14,688 29% $14,148 ex 3 % 3,675 6% z be = $3,144 5% 4% 7 $2,321 S £u6 2 $2,004 1% : . ea ios 2 $860 i i] 2a5 a = 2. 9 - be |] 82 ge [ec. a One aa Zea a8 328 sll ERS 2 i ad ED a 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 2017 2018 2019 2020 2021 $536,054 $584,960 $621,598 $684,132 $736,839 $388,488 $341,826 $306,810 $312,537 $413,805 Loans Investments Average Loan and Investment Balances (amounts in thousands)
Slide 12: Loan and Investment Yields (tax equivalent)
2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 2017 2018 2019 2020 2021 4.30% 4.49% 4.78% 4.63% 4.49% 3.11% 3.47% 3.45% 3.05% 2.61% 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 2017 2018 2019 2020 2021 $607,222 $596,401 $583,740 $658,889 $807,970 $154,892 $165,341 $157,379 $95,791 $89,918 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% 2017 2018 2019 2020 2021 0.70% 0.87% 1.14% 0.75% 0.39% 1.50% 2.07% 2.28% 1.48% 2.23% 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% 2017 2018 2019 2020 2021 2.93% 2.98% 2.95% 3.25% 3.08% 3.09% 3.18% 3.23% 3.46% 3.22% Net Interest Spread Net Interest Margin Net Interest Spread and Net Interest Margin (tax equivalent)
Slide 16: Net Income After Taxes, Tax Expense & Net Securities Gains/(Losses)
$(2,000) $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 2017 2018 2019 2020 2021 $8,648 $9,211 $10,227 $11,837 $14,688 $1,455 $459 $1,114 $1,577 $2,321 $938 $(65) $911 $(58) $323 Net Income After Taxes Tax Expense Net Securities Gain/Loss Net Income After Taxes, Tax Expense & Net Sec
Slide 17: Unaudited Income Statement, Q1 2022
3 Months Ended March 31, 2022 3 Months Ended March 31, 2021 % Change Net Interest Income* 9,456 $ 8,970 $ 5.4% Plus Non-Interest Income** 1,389 1,875 -25.9% Equals Operating Revenue 10,845 10,845 0.0% Less Loan Loss Provision 219 135 62.2% Less Non-Interest Expense 6,516 6,197 5.2% Equals Pre-Tax In
Slide 18: Balance Sheet Unaudited
3 Months Ended March 31, 2022 3 Months Ended March 31, 2021 % Change Cash & Cash Equivalents 9,899 $ 37,141 $ -73.3% Securites & Restricted Stocks 439,829 391,583 12.3% Net Loans 770,091 714,942 7.7% Premises & Equipment, Net 17,994 18,454 -2.5% Other Assets 59,274 53,401 11.0% Total Assets 1,297,08
Slide 19: FKC's Franchise Value
FKC’s Franchise Value ➢ History of solid investor returns ➢ Dividend Yield of 4.65% at 12/31/2021 & 4.48% at 3/31/2022 ➢ Historically strong capital position ➢ Investor - focused dividend policy – Share of record income with increased dividends and three special dividends during 2021 ➢ Consistent fi
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 .. Thes
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. ➢ We continued our focus in 2021 on meeting the challenges of the ongoing
Slide 22: Overcoming Unique Challenges
Overcoming Unique Challenges During 2021 we continued to proactively confront the challenges of COVID - 19 ➢ In October 2020 we fully opened all branches for in - person customer service while continuing to follow CDC and PA Department of Health guidelines. ➢ Throughout 2021 we provided customer ser
Slide 23: Overcoming Unique Challenges: SBA PPP
Overcoming Unique Challenges ➢ The SBA Paycheck Protection Program (“PPP”) began shortly after the COVID - 19 pandemic in 2020 to help business keep their workforce employed during the crisis. The program provided banks with guaranteed loans for their small business customers and allows for loan for
Slide 24: 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 $13,947 of their own funds during Denim Days, suppor
Slide 25: _ = eee
_ = eee PFIRST KEYSTONE CORPORATION
Slide 26: CONNECT for Wellness
CONNECT for Wellness Collected hygiene items were donated to the following non-profits: « The Hope Center, Nescopeck + YMCA, Berwick Beyond Violence, Berwick + Teen Center, Berwick + Small Beginnings, Berwick + First United Methodist Church, Berwick + Monroe County Children & Youth, Stroudsburg + Ca
Slide 27: Commitment to Community
Commitment to Community ➢ In addition to the employee donations, 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
Slide 28: Recognition and Appreciation for Years of Service
Recognition and Appreciation for Years of Service Robert E. Bull Retired from Boards of Directors Effective April 1, 2022 First Keystone Corporation Chairman of the Board ~ July 5, 1983 – May 5, 2017 Director of the Board ~ July 5, 1983 – April 1, 2022 First Keystone Community Bank Chairman of the B
Slide 29: Awards and Recognition
Awards and Recognition The PA Bankers Association awarded four of our team members with the “Future Under 40” award for being future leaders in our industry.
Slide 30: Management Team 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 41 years 29 years Teller, CSR, Acctg Clerk, Commercial Loan Officer, Director of Lending, Chief Operati
Slide 31: 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
Slide 32: Looking to the Future
Looking to the Future ➢ Our goal is to evolve without losing the values that has 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 ri
Slide 33: Keys to our Success are expressed in our 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 34: Commitment to You
Commitment to You ➢ For more than 157 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, support and guidance ➢ We rec
Slide 35: 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 36: Thank you for attending our 2022 Annual Shareholders' Meeting
Thank you for attending our May 5 th , 2022 Annual Shareholders’ Meeting!