First Keystone Corp. · OTC:FKYS

First Keystone — Shareholder Meeting (May 2012)

47 slides from First Keystone's shareholder meeting presentation, May 14, 2012

1. Slide 1: Annual Shareholder Meeting

   FIRST KEYSTONE CORPORATION { AANNUAL SHAREHOLDER MEETING May 10, 2012 y First hk Keystone ‘COMMUNITY BANK DITION, TOMORI

2. Slide 2: Chief Executive Officer

   CHIEF EXECUTIVE OFFICER MATTHEW P. PROSSEDA t FIRST KEYSTONE CORPORATION

3. Slide 3: Total Assets (in Millions)

   O L ASSETS (IN MILLIONS) 2006 9007 2008 4 FIRST KEYSTONE ATION

4. Slide 4: Chart (in Millions)

   S (IN MILLIONS) FIRST KEYSTON RATION

5. Slide 5: Chart (in Millions)

   LLIONS) $70.9 FIRST KEYSTO!

6. Slide 6: Net Interest Income (in Millions)

7. Slide 7: Net Income (in Thousands)

8. Slide 8: Dividends

   $1.35 gyg, $190 S06 FIRST KEYSTON

9. Slide 9: Dividends (Per Share)

   D DENDS (PER SHARE) $0.97 és goes 089 8092 $0.93 od . 85 i ee : 2008 SNA mor FIRST KEYSTONE ATION

10. Slide 10: Income Statement (in Millions)

    INCOME STATEMENT an Mitions) March 31, 2012 | March 31, 2011 | % Change Net Interest Income $7,020 $6,831 28 + Non-Interest Income $1,024 $963 6.3 = Operating Income $8,044 $7,794 3.2 - Loan Loss Provision $400 $300 33.3 - Non-Interest Expense $4,585 $4,304 65 = Pre-Tax Income $3,059 $3,190 (4.1) =

11. Slide 11: Balance Sheet (in Millions)

    BALANCE SHEET an muions) March 31, 2012 March 31, 2011 | % Change Cash Due From Banks $10,904 $30,412 (64.2)| Investment Securities $334,985, $309,266 Loans — Net $414,233 $404,136 Fixed Assets $14,311 $12,011 Other Assets $49,260 $53,458 Liabilities and Capitals ‘Non — Interest Bearing Deposits $84

12. Slide 12: Chief Operating Officer

    CHIEF OPERATING OFFICER KEVIN L. MILLER Tomorrow’s Vision! t FIRST KEYSTONE CORPORATION

13. Slide 13: Record Earnings

    RECORD EARNINGS First Keystone Corporation Announ Comeany Release o4so20%2 1319 es Increase in First Quarter 2012 Earnings re re MESS WE Fes kere Canter 3 RSE cane ote Keys Comment Ban ‘omen tore $2638.00 rom gus oe Nae OC Hanbeasect 6 hoe te kata sere 4 Earnings ees Record 204 ne Announ’ Firat Keys

14. Slide 14: Stock price chart

    $25.00 $23.00 i350 —— ae $170 s1730 s1s00 + 2AYR00 4/17 THANOLL—sonOM AzpsOROL 3/8402 5/901 ORPORATION,

15. Slide 15: Great Story

    EAT STORY HOW ARE WE GOING TO CONTINUE THIS GREAT STORY? How are we going to convince our existing and new customers that we are the bank of choice?

16. Slide 16: Tomorrow's Vision

    AT STORY TOMORROW’S VISION. ¢ A Vision to enhance our branch network. * A Vision for our staff. * A Vision for our customers. t FIRST KEYSTONE CORPORATION

17. Slide 17: A Vision in Plymouth

    TOMORROWS VISION... A VISION IN PLYMOUTH. t FIRST KEYSTONE CORPORATION

18. Slide 18: Plymouth Branch

    PLYMOUTH OUR 16™ BRANCH IN PLYMOUTH OPENED JULY 1, 2011 t FIRST KEYSTONE CORPORATION

19. Slide 19: Plymouth Deposits

    PLYMOUTH DEPOSITS GREW TO 4.5 MILLION IN 6 MONTHS. Kfirst Keystone con | or t FIRST KEYSTONE CORPORATION

20. Slide 20: A New Headquarters

    A NEW HEADQUARTERS A VISION FOR DOWNTOWN BERWICK t FIRST KEYSTONE CORPORATION

21. Slide 21: A New Headquarters

    A NEW HEADQUARTERS CONSTRUCTION BEGAN 10-31-2011 "4 ‘ t FIRST KEYSTONE CORPORATION

22. Slide 22: Steel Beams Going Up

    STEEL BEAMS GOING UP t FIRST KEYSTONE CORPORATION

23. Slide 23: A New Headquarters

    A NEW HEADQUARTERS FIRST KEYSTONE CORPORATION

24. Slide 24: New Headquarters

    NEW H ARTERS STEEL WITH ROOF AND STAIRWELLS t FIRST KEYSTONE CORPORATION

25. Slide 25: Our New Drive-Thru

    WN BERWICK OUR NEW DRIVE-THRU t FIRST KEYSTONE CORPORATION

26. Slide 26: The Jewel of Downtown Berwick

    THE JEWEL OF DOWNTOWN BERWICK OUR NEW HEADQUARTERS. 11. peanl sé Ly g bb oboth Opening Dec 2012. t FIRST KEYSTONE CORPORATION

27. Slide 27: A Vision in Kingston

    VISIONS ... A VISION IN KINGSTON IRPORATION:

28. Slide 28: Broke ground in March 2012

    ee Broke ground in March 2012. t FIRST KEYSTONE ORATION

29. Slide 29: Kingston, Wyoming Ave

    KINGSTON. 299 WYOMING AVE CORNER OF HoyT AND WYOMING AVE. FIRST KEYSTONE CORPORATION

30. Slide 30: Kingston, Wyoming Ave

    KINGSTON. 299 WYOMING AVE CORNER OF HoyYT AND WYOMING AVE. E CORPORATION

31. Slide 31: Scheduled Completion Date

    KINGSTON. 299 WYOMING AVE SCHEDULED COMPLETION DATE Is 8-11-2012 t FIRST KEYSTONE CORPORATION

32. Slide 32: A Vision in Shickshinny

    VISIONS... A VISION IN SHICKSHINNY! ORPORATION,

33. Slide 33: Shickshinny

    SHICKSHINNY.... FROM * The devastating flood of 2011 * Closing of Wells Fargo in Shickshinny TO ¢ A brand new branch in Shickshinny. t FIRST KEYSTONE CORPORATION

34. Slide 34: Shickshinny

    SHICKSHINNY t FIRST KEYSTONE CORPORATION

35. Slide 35: Shickshinny

    SHICKSHINNY HASAY CHEVROLET LOT Home of our latest branch scheduled to open November 2012. FIRST KEYSTO!

36. Slide 36: Shickshinny

    SHICKSHINNY FIRST KEYSTONE IRPORATION:

37. Slide 37: Visions for Our Staff

    VISIONS VISIONS FOR OUR STAFF. IRPORATION:

38. Slide 38: Staffing

    FFING Employees * Key to our success. * Need to build a great team. * Make sure we have the right employees in the right positions * Made changes + Added Key Positions to Staff t FIRST KEYSTONE CORPORATION

39. Slide 39: Staffing Updates

    AFFING UPDATES Employee Additions * Toney Horst — Controller. * Mike Rider — Information Security Officer. * Jessica Allen — Commercial Deposit Development Specialist. * Rosie McGinley — Financial Service Representative, Wilkes-Barre/Pocono Market. * Mortgage originator — Wilkes-Barre Market. Curren

40. Slide 40: Staff

    STAFF Employees are the key to our success * We are still working at building a strong team. * We want the best talent possible. * We want motivated, dedicated employees. * We want employees that are able to provide the best customer service possible. t FIRST KEYSTONE CORPORATION

41. Slide 41: Visions for Our Customers

    VISIONS... VISIONS FOR OUR CUSTOMERS. t FIRST KEYSTONE CORPORATION

42. Slide 42: Customer Experience: New Services

    CUSTOMER EXPERIENCE NEw SERVICES * Escrow processing. * Enhanced Merchant card processing. * Updated Remote Deposit Capture(RDC) * Bump up CD’s t FIRST KEYSTONE CORPORATION

43. Slide 43: Customer Experience: Planned Services

    CUSTOMER EXPERIENCE PLANNED SERVICES FOR 2012/2013 * Quickbooks interface * Positive Pay * Switch Kit * Online account opening t FIRST KEYSTONE CORPORATION

44. Slide 44: Provide the Ultimate Customer Experience

    VISIONS... PROVIDE THE ULTIMATE CUSTOMER EXPERIENCE BY HAVING * great products * great people * great pricing. * great services. t FIRST KEYSTONE CORPORATION

45. Slide 45: Customer Experience: To Succeed

    CUSTOMER EXPERIENCE To SUCCEED * We need to better promote our bank. * We need to promote our added value. * We need to create a Distinct Competitive Advantage. * By doing these, First Keystone WILL be the bank of choice! t FIRST KEYSTONE CORPORATION

46. Slide 46: How to Get This Message Out?

    CUSTOMER EXPERIENCE HOW TO GET THIS MESSAGE OUT? ¢ We do it through *.. our employees, *.. our great service, *.. our advertising, *.. our community involvement, ¢ .. and our existing customers and shareholders. t FIRST KEYSTONE CORPORATION

47. Slide 47: Stockholder Annual Meeting 2012

    STOCKHOLDER ANNUAL MEETING 2012 TOMORROW’S VISION IS HERE TODAY! y First \ Keystone QUESTIONS? ao Oud La, gobatatet t FIRST KEYSTONE CORPORATION

First Keystone — Shareholder Meeting (May 2012) on 6ix