From the Vault - Issue 2

Yesterday's Traditions.

Tomorrow's Vision.

19 Convenient Locations

www.fkc.bank

Phone: 1.888.759.2266

Issue 2 l July 2018

Greetings!

Welcome and Happy Summer!

I hope you enjoy our second edition of From the Vault.

We recently held our 2018 Annual Meeting of Shareholders at the McBride Memorial Library in Berwick, Pennsylvania.

Michael L. Jezewski and William E. Rinehart were elected Class A Directors and David R. Saracino was re-elected as a Class A Director. They will serve on the Board of Directors for First Keystone Corporation, and its subsidiary, First Keystone Community Bank.

Jerome F. Fabian and John G. Gerlach retired from the Board of Directors

of the Corporation and the Bank effective May 10, 2018.

On behalf of First Keystone Corporation and First Keystone Community Bank, our sincerest thanks for their years of service and congratulate each of them for being

elected Director Emeritus of First Keystone Community Bank.

We have recognized and promoted the following employees for their outstanding service to the Bank and its customers.

Tiffany Bienkowski , Assistant Cashier / Credit Analyst

Shane A. Davis , Assistant Cashier / Accountant I and Systems Administrator

Jillian Guenther , Assistant Vice President / BSA Officer / Fraud Manager

Jason Holloway , Vice President / Commercial Services Officer

Brian Klinefelter , Vice President / Credit Department Manager

Linda Meshinski, Vice President / Community Office and Regional Manager

Kristi McClintock , Assistant Vice President / Document Preparation Specialist

Thomas McGrath , Assistant Vice President / Commercial Services Officer

Laurie Nudo , Assistant Vice President / Community Office Manager

Terri Romanowski, Assistant Cashier / Assistant Community Office Manager

Cindy Thorne, Assistant Cashier / Trust Operations Specialist

Kim Volkel , Assistant Vice President / Community Office Manager

David Warho , Assistant Cashier / Technology Systems Engineer

Chris Zlobik , Vice President / Deposit Operations Officer

Congratulations to everyone!

Elaine Woodland, Interim President and CEO

Promotion for Financial Services

We are pleased to announce the promotion of Rebecca Hooper , CFIRS, to Vice President & Senior Trust Officer for the Financial Services Department.

Hooper has over 15 years of experience with trust services and administers trusts, estates and investment accounts.

Rebecca is a graduate of Cannon Financial Institute and has certification designation as a Certified Fiduciary and Investment Risk Specialist. She also graduated from PA Bankers Trust School.

Hooper is an active member of several community service groups and serves on the board of the Berwick Woman’s Civic Club.

Interim President and Chief Executive, Elaine A. Woodland commented, “Rebecca’s ability to connect with customers and build relationships is a great asset at First Keystone Community Bank. We pride ourselves on promoting from within our organization on the merit of their success.”

WE ARE EXCITED TO ANNOUNCE...

THE OPENING OF OUR 19TH OFFICE

Our new office is located in a

first-floor suite in the Main Street Commons located at 559 Main Street, Bethlehem, next to the Bethlehem Brew Works in what was once the Orr's department store.

"Bank customers want to be treated as people, not numbers," said Senior Vice President – Director of Lending Matt Mensinger. "Personal service is key to our success and will be critical to earning the trust- and the business- of individuals and businesses in the Lehigh Valley."

"For now, we will not be opening a retail branch, where customers can open personal accounts, make deposits and withdrawals and use the ATM – at least not right away," said Matthew Mensinger, Senior Vice President.

In the short term, the new office will focus on loan origination for both commercial and residential loans. However, those services will be just the beginning of the bank’s eventual Lehigh Valley operations, he added.

“We applied [for regulatory approval] as a full service branch, because we intend to have a full service branch in the Lehigh Valley within the next several years,” Mensinger noted. "Vice Presidents Michael Reis and Michael Santiago were hired specifically in anticipation of opening a branch in the Lehigh Valley and to oversee development of business in the region."

For additional information about the bank or its new office, please contact:

Michael Reis, Vice President

484-546-9801

[email protected]

Michael Santiago, Vice President

973-723-0263

[email protected]

First Keystone Community Bank,

559 Main Street, Suite 101, Bethlehem, PA 18018

www.fkc.bank

SCAM ALERT!

Protect Yourself from ATM skimming

with this helpful advice.

In the event that you notice a skimming device on any ATM machine, you should discontinue use and let the staff at that bank know about the skimmer immediately. If it happens to be after business hours, contact local authorities.

Together we can all help prevent this type of scam and spread awareness throughout our communities!

Follow this link to visit our website for more important security tips & resources.

WHY DOES OUR WEB ADDRESS END IN .BANK?

We are committed to ensuring that our customer’s information is safe and secure.

A .bank domain provides a safer online banking experience for our customers.

It provides a level of security unmatched in traditional internet environments such

as .com. Read Our Success Story as pubilshed by .bank

OUR DENIM DAYS

Our customers may have wondered why First Keystone Community Bank employees are wearing jeans on certain Fridays.

No, we are not behind on our laundry.

It’s Denim Day!

At First Keystone, one Friday each month is designated as Denim Day. On this day, an employee can donate $5.00 for the ability to wear jeans to work. The money is given to the chosen charity for that month. Since starting Denim Day last year, the Bank’s employees have raised close to $6,000 for local charities, such as Valley with a Heart, AGAPE, Monroe County Children’s Services, Candy’s Place, Sandy Rollman Foundation, AWSOM animal shelter, Defeat ALS and many food cupboards in our market area.

Our employees are making a difference one Denim Day at a time!

M ore than 70 percent of college graduates began their career owing more than $37,000 in student loans in 2017. It's critical for new college graduates to focus on their financial future as they receive their diploma, says the American Bankers Association.

ABA has highlighted six traps new college graduates should avoid to position themselves for financial success as they transition from the dorm room to the office.

“Student loans, housing costs and plenty of other living expenses come fast and furious after graduation, so it’s extremely important to start off on the right track with positive financial habits,” said Corey Carlisle, executive director of the ABA Foundation. “We can’t stress enough how vital it is to plan for the future.”

ABA Suggests, new college graduates should avoid the following financial traps:

Not having a budget. Supporting yourself can be expensive, and you can quickly find yourself struggling financially if you don’t take time to create a budget and live within your means. Calculate the amount of money you’re taking home after taxes, then figure out how much money you can afford to spend each month while contributing to your savings. Be sure to factor in recurring expenses such as student loans, monthly rent, utilities, groceries, transportation expenses and car loans.

Racking up debt. Understand the responsibilities and benefits of credit. Shop around for a card that best suits your needs, and spend only what you can afford to pay back. Credit is a great tool, but only if you use it responsibly and live within your means.

Not thinking about retirement. It may seem odd since you’re just beginning your career, but now is the best time to start planning for your retirement. Contribute to retirement accounts like a Roth IRA or your employer’s 401(k), especially if there is a company match. Invest enough to qualify for your company’s full match – it’s free money that adds up to a significant chunk of change over the years. Automatic retirement contributions quickly become part of your financial lifestyle without having to think about it.

Thinking you’re invincible. Hardships can happen in a split second. Start an emergency fund and do your best to set aside the equivalent of three to six months’ worth of living expenses. Start saving immediately, no matter how small the amount. Make saving a part of your lifestyle with automatic payroll deductions or automatic transfers from checking to savings. Put your tax refund toward saving instead of an impulse buy.

Putting off paying bills. Each missed payment can hurt your credit history for up to seven years and can affect your ability to get loans, the interest rates you pay and your ability to get a job or rent an apartment. Consider setting up automatic payments for regular expenses like student loans, car payments and phone bills. Regardless of whether you take advantage of automatic monthly payments, arranging to receive notifications about upcoming bills can be helpful. You can also contact creditors and lenders to request a different monthly due date from the one provided by default (e.g., switching from the 1st of the month to the 15th).

Ignoring free help from your bank . We are here to help. We offer free personalized financial checkups to help you identify and meet your financial goals. Call our Financial Services Department to speak with someone who can help you 570-802-8200.

You can also take advantage of our free digital banking tools that enable you to check balances, pay bills, deposit checks, monitor transaction history and track your budget. If you haven’t done so already, visit our website to sign up for online banking.

DID YOU KNOW?

There is more Monopoly money

printed every year than actual cash.

P artnering with our customers and prioritizing their needs is one of the foundations of First Keystone Community Bank’s overall business philosophy. You could say it is one of our keystones.

When the word 'community' was added to our title in 2010, it emphasized our focus on providing traditional banking services and financial solutions in our local communities and neighborhoods.

“Community banks are important to the economies of the places we serve,” said Interim President and CEO Elaine Woodland. “What sets us apart is our connection with the communities in which we do business. We understand the needs of the people and businesses that we serve.”

At First Keystone, community means more than sharing a zip code. This is evidenced by the wide variety of groups and organizations that have benefited from collaborating with First Keystone, such as the McBride Memorial and Hoyt Libraries; Berwick, Bloomsburg and Stroudsburg YMCAs; Central Susquehanna Community Foundation and the Women’s Giving Circle; Pocono Services for Families and Children; Berwick Industrial Development Association (BIDA); Columbia Montour Chamber of Commerce; Columbia Alliance for Economic Growth, and the Children’s Service Center of Wyoming County.

The Bank also assembled a large “Relay for Life” team, participated in the “Walk to Defeat ALS,” and supported the “Warrior of the Quarter” program at the Tobyhanna Army Depot, which honors military veterans from all over Northeastern Pennsylvania. From local community groups like fire companies, food pantries, animal shelters and little league teams, to more widely known entities such as United Way and Salvation Army, First Keystone is first in line to lend a helping hand.

Another major element of First Keystone’s dedication to its community partnerships centers on education and fostering the next generation of business and community leaders. Members of the Bank’s staff visited local high schools throughout the 2016, 2017 and 2018 school years to teach students about banking, touching on topics such as checking and savings accounts, credit and debit cards, and managing debt. This initiative reached over 1,500 students.

In addition to supporting Junior Achievement of Northeastern PA, the Danville Child Development Center, and the “Newspapers in Education Program,” First Keystone annually sponsors four students to attend Pennsylvania Free Enterprise Week (PFEW), a residential summer camp that teaches high school juniors and seniors to understand and celebrate private enterprise and gets them excited about business, entrepreneurship, and career opportunities in Pennsylvania.

In the spring of 2017, First Keystone’s executive staff spent many hours helping Bloomsburg University’s team in the nationwide “Community Bank Case Study Competition,” facilitated by the Conference of State Bank Supervisors. The competition, which was open to undergraduate students in all fields of study, was an opportunity for students to gain valuable first-hand knowledge of the banking industry, as well as the opportunities and challenges facing community banks in the 21st century. BU was one of five finalists among the 33 institutions that participated.

FKCB employees also support worthy causes themselves. For example, “Denim Day” is held one Friday per month, with the proceeds donated to various local programs. In addition to monetary donations, contributions also come from the dedication of time and service by our employees, totaling more than 2,300 hours donated in 2017-2018.

“Most of our business is done locally with local individuals and businesses. Taking care of the communities in which we live, work and play is very important to all of us at First Keystone Community Bank,” Woodland said.

True to our mission — “Yesterday’s Traditions. Tomorrow’s Vision.” —

First Keystone Community Bank is a leader in providing products and services that stress convenience and flexibility, such as bill payment, mobile banking, remote deposit capture, online account opening, and our Keystone Rewards suite of accounts featuring high-yield checking and savings accounts.

SAFE SUMMER TRAVELS FINANCIALLY

Your suitcase is packed, you've got your travel itinerary, and you're prepared for the weather where you are going. But are you all set financially? Unless you have taken the time to consider your money needs, including safety precautions, that pleasure or business trip could turn into a big disappointment and a major expense .

Here are some financial items we recommend you add to your list before your vacation starts. Taking care of these on the front end will let you focus on the important things—rest and relaxation—while you’re away.

Notify your financial institutions.

The money in your bank account has no significance if your account is frozen. Even the slightest deviation from your normal spending pattern can raise a red flag for a fraud department, which may result in your credit or debit cards being denied.

Prevent this from happening by calling or stopping by your First Keystone Community Bank Office, and also contact your credit card companies about the location of your travels and the duration of your stay especially if you are traveling abroad. And if you plan to put more purchases on your card than usual, you may also want to inquire about increasing your limit temporarily.

Set up online accounts. Make sure you are signed up for First Keystone Community Bank online banking before you leave. This service will give you added convenience and security over your funds while traveling. With an online account, you can easily check your account which will allow you to stay on top of recent transactions. If you don’t currently bank online it’s quick and easy to get started. Stop by your First Keystone office or follow this link to our website to get started Sign up for online banking

You should also implement First Keystone automatic text or email alerts by logging into your account. Click on the alert tab and follow the directions. Based on the alerts you set up, we will notify you when those transactions occur.

This reduces your chances of identity theft or fraud, helps to prevent overdrawn accounts and bank fees and helps you detect errors or suspicious charges quickly while you’re traveling.

Clean out your wallet and purse. Know what is in your wallet and remove any credit cards, debit cards, gift cards or coupons that you won’t need on your trip. If you don’t bring it with you, you can’t lose it. While you’re at it, check the expiration dates on the cards you plan to take and your driver’s license to make sure they won’t expire during your vacation.

Make a list of key numbers and copy important documents in case they get lost or stolen. Your list could include phone numbers for your credit card companies, banks and insurance companies. Consider scanning and e-mailing this list along with a copy of your driver's license, Credit, Debit or Prepaid card(s) and (if you're going abroad) your passport identification page to a secure place, such as your own e-mail address or the e-mail of a trusted friend or family member. This will be a lifesaver if you need to contact banks and credit card companies or replace identification. You might also want to consider keeping some cash and a backup credit card in your room safe or another secure location in case your belongings are lost or stolen. And always leave a credit card back home, since replacement cards can take a while to arrive in the mail.

Get the Best Exchange Rate. W hen traveling abroad, research your destination’s currency at least four weeks before your departure date and how you can get the best exchange rate. real-time data from reliable sources, such as The Wall Street Journal or Bloomberg.

With the market exchange rate in hand, you can now shop around and look for the best rates.

Using your cell phone abroad . If you try to use your U.S.-based phone internationally, you’re likely to be charged high roaming fees for accessing data and making calls. Check with your provider to see if your current plan allows for international calling. If it doesn’t, here are some tips to keep you from racking up huge phone bills while traveling.

Turn off data usage

Reduce data roaming charges by updating your settings to check for email and application updates manually, rather than automatically. This way, you can check and send emails when it’s convenient (e.g., when you’re using Wi-Fi at the hotel). Alternatively, you can keep your phone in “airplane mode” when you don’t need Wi-Fi to help prevent your phone’s battery from draining too quickly.

Take advantage of free messaging platforms

With an increase in international travel, companies are finding new ways to keep us connected through a simple Wi-Fi connection. If you plan to use a laptop, Skype is great for messaging and voice calls. If you prefer to text while abroad, free apps like WeChat and WhatsApp allow you to send messages over Wi-Fi.

Put a hold on mail and other services. Even if most of your mail comes electronically these days, it’s still important to put a hold on your physical mail delivery. There are scammers out there who make money from stealing mail that could include identity-related information, such as Social Security numbers or account passwords. Travelers can request a hold for up to 30 days by phone, on the U.S. Postal Service website by filling out this form to forward your mail or in person at your post office. If you’ll be vacationing at the same temporary address for longer than 30 days they also offer domestic forwarding service. You can sign up here. .

Likewise, you can often request holds for newspapers, magazines and other subscription-based services, such as meal-delivery plans, gym memberships and streaming services. The savings add up, particularly if you’ll be out of town for an extended getaway.

Get covered. Before hitting the road or taking to the air, review your existing insurance policies. Make a call or send an email to your health insurance company and ask them about healthcare and emergency healthcare coverage while you’re away from home.

Some insurance companies have restrictions and/or exclusions for coverage. If you current insurance policy does not cover you while you’re away, consider travel insurance. It can save the day when it comes to vacation-specific expenses. It can cover anything from medical expenses and theft of belongings to cancelled trips and travel inconvenience. Consider what kind of coverage you might want or need and arrange it before you leave.

If you plan on renting a car, review your auto insurance policy as well to see what’s covered in case of an accident.

Happy & Safe Travels!