First Keystone Corp. · OTC:FKYS
First Keystone — Shareholder Meeting (May 2014)
60 slides from First Keystone's shareholder meeting presentation, May 7, 2014
Slide 1: First Keystone Corporation Annual Stockholders' Meeting
First Keystone Corporation May 6, 2014 Your Key To Progress Annual Stockholders’ Meeting
Slide 2: Forward-looking statements
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 av
Slide 3: Income Statement in Graphic Form
INCOME STATEMENT IN GRAPHIC FORM How we generated $38,836 in income: 53% INCOME ON LOANS. $20,471 INVESTMENT INCOME $10,490 OTHER INCOME $7,875 20% $B How we used our $38,836 in income: PAID TO DEPOSITORS $3,623 9% $B BORROWING COSTS $1,331 3% &
Slide 4: Average Loan and Investment Balances
$408,448 $410,427 $412,543 $423,580 $436,040 $253,319 $298,147 $321,873 $321,208 $321,627 $230,000 $280,000 $330,000 $380,000 $430,000 $480,000 2009 2010 2011 2012 2013 Average Loan and Investment Balances (Amounts in thousands) Loans Investments
Slide 5: Loan and Investment Yields
6.16% 6.01% 5.75% 5.45% 4.83% 5.84% 5.13% 4.83% 4.51% 3.81% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 6.50% 2009 2010 2011 2012 2013 Loan and Investment Yields (tax equivalent) Loan Yields Investment Yields
Slide 6: Loan and Investment Income
$25,155 $24,666 $23,738 $23,103 $21,081 $14,583 $15,310 $15,564 $14,493 $12,252 $10,000 $15,000 $20,000 $25,000 $30,000 2009 2010 2011 2012 2013 Loan and Investment Income (tax equivalent) (Amounts in thousands) Loan Income Investment Income
Slide 7: Average Total and Earning Assets
$749,798 $819,625 $821,148 $812,980 $838,560 $680,224 $749,733 $748,785 $747,579 $765,696 $650,000 $670,000 $690,000 $710,000 $730,000 $750,000 $770,000 $790,000 $810,000 $830,000 $850,000 2009 2010 2011 2012 2013 Average Total and Earning Assets (amounts in thousands) Average Total Assets Average E
Slide 8: Average Interest Bearing Deposits and Borrowings
$500,850 $557,506 $558,321 $538,549 $569,235 $104,203 $101,366 $92,265 $86,839 $75,296 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2009 2010 2011 2012 2013 Average Interest Bearing Deposits and Borrowings (amounts in thousands) Average Interest Bearing Deposits Average Borrowings
Slide 9: Deposit and Borrowing Costs
Liability Costs 2.27% 1.63% 1.20% 0.85% 0.64% 4.03% 3.58% 2.91% 2.25% 1.77% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 2009 2010 2011 2012 2013 Deposit and Borrowing Costs Deposits Borrowings
Slide 10: Deposit and Borrowing Expense
Interest Expense $11,364 $9,111 $6,718 $4,556 $3,623 $4,201 $3,631 $2,687 $1,958 $1,331 -$3,000 $2,000 $7,000 $12,000 $17,000 2009 2010 2011 2012 2013 Deposit and Borrowing Expense (amounts in thousands) Deposit Interest Borrowing Interest
Slide 11: Net Interest Income
$24,173 $27,234 $29,897 $31,082 $28,397 $15,000 $20,000 $25,000 $30,000 $35,000 2009 2010 2011 2012 2013 Net Interest Income (tax equivalent) (amounts in thousands)
Slide 12: Net Interest Margin
3.55% 3.63% 3.99% 4.16% 3.71% 3.00% 3.25% 3.50% 3.75% 4.00% 4.25% 4.50% 2009 2010 2011 2012 2013 Net Interest Margin
Slide 13: Non-Interest Income and Expense
$4,437 $4,795 $4,320 $5,120 $4,975 $15,594 $17,272 $17,695 $19,587 $19,501 $0 $5,000 $10,000 $15,000 $20,000 $25,000 2009 2010 2011 2012 2013 Non - Interest Income and Expense* (amounts in thousands) Total Non-Interest Income Total Non-Interest Expense *Before Net Gains on Sale of Investment Securit
Slide 14: Net Income After Taxes
$7,937 $8,961 $9,907 $10,170 $10,273 $7,000 $8,000 $9,000 $10,000 $11,000 2009 2010 2011 2012 2013 Net Income After Taxes (amounts in thousands)
Slide 15: Return on Average Assets and Equity
Income Measures: 10.88% 10.98% 11.57% 10.19% 10.12% 1.06% 1.09% 1.21% 1.25% 1.23% 1.00% 1.10% 1.20% 1.30% 10.00% 10.40% 10.80% 11.20% 11.60% 12.00% 2009 2010 2011 2012 2013 Return on Average Assets and Equity ROAE ROAA
Slide 16: Average Stockholders' Equity
$72,926 $81,585 $85,609 $99,834 $101,504 $65,000 $70,000 $75,000 $80,000 $85,000 $90,000 $95,000 $100,000 $105,000 2009 2010 2011 2012 2013 Average Stockholders’ Equity (amounts in thousands)
Slide 17: Earnings and Dividends per Share
$1.46 $1.65 $1.82 $1.86 $1.87 $0.92 $0.93 $0.97 $1.01 $1.04 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 2009 2010 2011 2012 2013 Earnings and Dividends per Share Earnings Dividends
Slide 18: Income Statement
Income Statement ($ in thousands, except per share data) 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, 2014 3 Months Ended December 31, 2013 %Change $6,508 1,715 $8,22
Slide 19: Balance Sheet
Balance Sheet ($ in thousands) Cash Due From Banks 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 $ 9,821
Slide 20: 5 Year Total Return Performance
0 50 100 150 200 250 300 01/01/08 01/01/09 01/01/10 01/01/11 01/01/12 01/01/13 First Keystone Corporation NASDAQ Composite SNL Bank $500M-$1B Period Ending Index 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 First Keystone Corporation 100.00 124.21 135.23 166.76 206.32 220.98 NASDAQ Composit
Slide 21: Elaine A. Woodland, Executive Vice-President, COO
Elaine A. Woodland Executive Vice - President Chief Operating Officer
Slide 22: National Bank Act and Berwick banking beginnings
February 25, 1863 – • National Bank Act passed by Congress • Created a national banking system & currency Summer 1864 – • I nformal meetings of Berwick business men • Intention of providing Berwick with banking facilities Articles of Association drawn and signed
Slide 23: Articles Drawn and Signed
Articles Drawn and Signed Mordecai W. Jackson P. M. Traugh Jesse Bowman M.M. Cooper Francis Evans Frederick Niceley Abram Miller W. H. Woodin M. E. Jackson William Lamon H. Lamon Seth B. Bowman
Slide 24: Articles of Association
ARTICLES OF ASSOCIATION. For the porpot of organising on Association to cary on the borne of Banbing, cer the oot of Congress called "du del to proside« Notional Onrcency, ase by poke of Unitek Sller Bel, ail fo prove for the cireslaton and redemption there" approval Jase 3, 1864, the teiersigandwaa
Slide 25: Charter Granted
Charter Granted ! September 21, 1864 • Charter granted by the Comptroller of Currency • First National Bank of Berwick • Charter No. 568 • Term of 20 years • First meeting of shareholders held • Directors were named • Bank President elected
Slide 26: Board of Directors 1864
Board of Directors 1864 Mordecai W. Jackson – President of Bank/Chairman of the Board P . M. Traugh Jesse Bowman Francis Evans Seth B. Bowman Abram Miller W.H . Woodin
Slide 27: Mordecai W. Jackson Term: 1864-1894
Mordecai W. Jackson Term: 1864 - 1894
Slide 28: Mordecai W. Jackson Term: 1864-1894
Mordecai W. Jackson Term: 1864 - 1894 • 1864 : First National Bank of Berwick • O perated from a 16’x25’ (400 sq ft ) brick building • East Front Street, just east of Market Street • Capital Stock: $ 50,000 • 7 Employees • 1865 : Bank began to pay dividends on June 1 • Consistently paid dividends ev
Slide 29: Original Bank Building
Orig nal Bank Build : iT Fikst NATIONAL BANK OF BEWWiCk IN. 1809
Slide 30: Samuel Carver Jayne Cashier/CEO
Samuel Carver Jayne Cashier/CEO Term: 1869 - 1928
Slide 31: Charter
Charter tn faite of Bras | | aaa ] Ascenplet wile le te provisions Uf the Cet Pongtes | enact Natonal Hankig C @ ipvzeatecvistence and for other purposes of provid. tae 6 4s RPO CO isoctaliony te Carte yl heer
Slide 32: Benjamin Franklin Crispin Jr. President 1894-1903
Benjamin Franklin Crispin Jr. President 1894 - 1903
Slide 33: Benjamin Franklin Crispin Jr. President 1894-1903
Benjamin Franklin Crispin Jr. President 1894 - 1903 • Began as a Teller in Jan 1876 • Elected as Director May 1880 • Elected President 1894 • upon the passing of Mordecai W. Jackson • 1901 – Present building constructed at 111 W. Front St. • Bank occupied half of first floor • Specifically designed
Slide 34: Frank Reese Jackson President 1903-1909
Frank Reese Jackson President 1903 - 1909
Slide 35: Frank Reese Jackson President 1903-1909
Frank Reese Jackson President 1903 - 1909 • Elected President upon passing of Benjamin Franklin Crispin Jr. • Was previously elected a Director in March 1881 • February 2, 1903: First National Bank of Berwick First bank in Columbia County to pay interest on time deposits
Slide 36: Mordecai Jackson Crispin President 1905-1943
Mordecai Jackson Crispin President 1905 - 1943
Slide 37: Mordecai Jackson Crispin President 1905-1943
Mordecai Jackson Crispin President 1905 - 1943 • Elected President upon the passing of Frank Reese Jackson • Grandson of the bank’s first president, Mordecai W. Jackson • 3 generations of the same family elected President • Later became Chairman of the Board • 1905 - Capital Stock increases to $75,0
Slide 38: Bank Expansion 1919
Bank Expansion 1919 • Bank growth required space of the entire building • Main Banking Room – newly remodeled “extended, enlarged and beautified” • Deposits are “40 times as large as 50 years ago, and bank now distributes as many thousands of dollars in interest annually as there were total deposits
Slide 39: Bank Expansion
Bank Expansion —————
Slide 40: Bank Expansion
Bank Expansion re “2 ‘MAIN BANKING Room OF First NATIONAL BANK OF BERWICK
Slide 41: Bank Expansion
Bank Expansion • January 1919 – $2mm in Assets $ 1.4mm in loans 87 % loan - deposit ratio • Bank had survived “ periods of panic and depressions, unscathed” • Deposits increased consistently throughout its 55 year history • 1924 – Bank capital increases to $ 125,000 “ Success is Propelled by Energy,
Slide 42: George W. Garrison President 1948-1962
George W. Garrison President 1948 - 1962
Slide 43: George W. Garrison President 1948-1962
George W. Garrison President 1948 - 1962 • 1948 - Elected the Bank’s 5 th President upon the passing of Mordecai Jackson Crispin • 1960 - New addition to Main Office building completed - Nescopeck Office opens
Slide 44: Doyle W. Hortman President 1962-1967
Doyle W. Hortman President 1962 - 1967
Slide 45: Doyle W. Hortman 1962-1967
Doyle W. Hortman 1962 - 1967 1962 – Elected as Bank’s 6 th President upon the passing of George W. Garrison 1964 – 100 year anniversary • Bank has been remodeled 3 times since inception • Dividends have been paid continuously since June 1865 • First National Bank of Berwick is the largest bank in Co
Slide 46: Board of Directors 1964
Board of Directors 1964 DIRECTORS Front Row - Left to Right Myron D. Beyer, Sr., Doyle W. Hortman, Pres., Ben E. Crispin, Chairman of the Board, Fra C, Elmes, Secretary of the Board and Solicitor, Arthur nit, Sr, Back Row - Left to Right Frederick E. Crispin, Jr., Leo Truax, Robert E. Bull, John K.
Slide 47: F. Stuart Straub President 1967-1987
F. Stuart Straub President 1967 - 1987
Slide 48: F. Stuart Straub President 1967-1987
F. Stuart Straub President 1967 - 1987 • 1944 – Testimonial dinner held by the employees of First National Bank of Berwick to honor Mr. Straub on his first leave of absence from United States Air Corp after 50 missions in Europe and Africa • 1967 - Elected Bank’s 7 th President upon the retirement o
Slide 49: F. Stuart Straub President 1967-1987
F. Stuart Straub President 1967 - 1987 • 1978 – Salem office opens accommodates the development of the East End of Berwick • 1981 - Bank’s first ATM installed at Salem - Computer operations software updated with teller machines going on - line • 1981 - Robert E. Bull becomes Chairman of the Board of
Slide 50: Robert E. Bull Chairman of the Board 1981-Present
Robert E. Bull Chairman of the Board 1981 - Present
Slide 51: Robert E. Bull Chairman of the Board 1981-Present
Robert E. Bull Chairman of the Board 1981 - Present • Chairman of the Board for 33 years • 1981 – First National Bank of Berwick - 3 offices: Berwick , Nescopeck and Salem ▪ Assets exceed $65 million ▪ Stockholder’s Equity exceeds $5 million ▪ Record high interest paid on Certificates of Deposit x 1
Slide 52: J. Gerald Bazewicz President 1987-2010
J. Gerald Bazewicz President 1987 - 2010
Slide 53: J. Gerald Bazewicz President 1987-2010
J. Gerald Bazewicz President 1987 - 2010 • 1987 - Elected Bank’s 8 th President upon the retirement of F . Stuart Straub • 1989 – Scott Township office opens, with ATM. – Bank joins international PLUS system customers gain international access to their accounts • 1990 – Nescopeck Office adds an ATM
Slide 54: J. Gerald Bazewicz President 1987-2010
J. Gerald Bazewicz President 1987 - 2010 • 1999 - Bank’s 2 nd “In - Store ” Briar Creek branch opens • 2002 – Kingston Office opens • 2004 – Danville “In - Store ” branch relocates to former First Federal Bank building • 2007 – First National Bank of Berwick changes name to First Keystone National B
Slide 55: J. Gerald Bazewicz President 1987-2010
J. Gerald Bazewicz President 1987 - 2010 • 2009 – Mountain Top Office opens • 2010 – First Keystone National Bank changes • From Federal to State Charter • N ame to First Keystone Community Bank – unified all markets under one umbrella • 2011 – Plymouth Office opens • Mr. Bazewicz continues his serv
Slide 56: Matthew P. Prosseda President
Matthew P. Prosseda President
Slide 57: Matthew P. Prosseda President
Matthew P. Prosseda President • 2012 – Appointed as the bank’s 9 th President upon the retirement of J. Gerald Bazewicz • 2013 – Dallas and Shickshinny offices open • 2013 – Main office: ▪ Newly constructed Administrative offices ▪ Remodeled lobby & customer service area – Total Assets exceed $900 m
Slide 58: Slide 58
Slide 59: Yesterday's Traditions... Tomorrow's Vision
Yesterday’s Traditions……. Tomorrow’s Vision “ Banks possess as much personality as people because they are just what their officers make them; and there is just as much difference among banks as there is among the people who manage them.” If these men have not the spirit of friendly, helpful sympath
Slide 60: Thank You for Attending!
THANK YOU FOR ATTENDING! Our Key To a great bank is you!