Kish Bancorp, Inc. Announces Third Quarter Financial Results

October 18, 2021

PRESS RELEASE

State College, Pennsylvania (KISB) – William P. Hayes, Chairman and CEO of Kish Bancorp, Inc., has announced unaudited financial results for the nine-month period ending September 30, 2021. Highlights of 2021 to date include:

• Strong year-over-year net income expansion of 41.1% compared to September 30, 2020
• New customer acquisition driving deposit and balance sheet growth of 17.5% and 14.4%, respectively, from 2020
• Sustained residential mortgage lending, with mortgage loan sales revenue up 25.5% over 2020
• Strong capital formation, up 12.4% from 2020, combined with excellent return on shareholders’ equity of 14.7% (compared to 11.6% in 2020)
• Healthy credit quality metrics that have remained positive throughout the pandemic
• Successful expansion into contiguous counties and northeastern Ohio
• Excellent ROI from investments in operating technology, with data processing expense down 24.4% from last year

Kish Bancorp’s total assets ended the period at $1.197 billion, an increase of $149.7 million, or 14.30%, compared to September 30, 2020. Total loans outstanding grew year over year by $77 million, or 9.79%, to $864.3 million. Loans originated this year to community businesses as part of the third round of the Paycheck Protection Program totaled $35 million, which was offset by PPP loan forgiveness of $44 million. Kish’s northeastern Ohio lending team was the strongest contributor to loan growth in the first nine months of 2021, generating over $67 million in new loans outstanding.

Investment securities increased to $183.2 million, a $43 million increase over the balance a year earlier. Total deposits grew by $143.7 million to $965.7 million, an increase of 17.48% from $822.1 million a year ago, with a continued notable expansion in core deposits created by new customer acquisition and the liquidity generated by government stimulus programs.

Net income for the nine-month period was $7.56 million, a 41.09% increase compared to $5.36 million for the same period in 2020. “The increase reflects expansion in both net interest income, up 15.18% over the prior year, and noninterest income, which increased 25.75% overall,” said Hayes. He continued, “The expansion in net interest income benefitted from the continued decline in interest expense on deposits. The sharp increase in noninterest income is attributable first to market value increases in the equity portfolio of $277 thousand compared to losses of $497 thousand in 2020, and second to the addition of insurance agency revenue due to the acquisition of Sausman Insurance Agency. Net income was also positively impacted by gains on sales of loans and the decline in the contribution to the loan loss reserve as overall credit quality metrics remain at excellent levels.”

Year over year, noninterest expense increased by $2.4 million, or 10.98%, to $24.6 million, compared to $22.1 million the prior year. In part, the increase reflects higher salaries and employee benefits associated with additions to the Kish team, as well as occupancy expense related to the opening of the new Kish Innovation Center. Data processing expense for the first nine months of 2021 decreased to $1.4 million from $1.8 million in the same period of the prior year, an improvement of 24.37%. These lower costs are the result of a core conversion that was completed in 2020. All other expense categories were well controlled when compared to the prior year.

“Return on shareholders’ equity continued to be strong as it rose to 14.69%, compared to 11.59% the year earlier,” said Hayes. “We were also pleased to take advantage of favorable market conditions with the issuance of $20 million of subordinated debt during the second quarter.”

The Board of Directors declared a quarterly dividend in the amount of $0.29 per share, payable October 29, 2021, to shareholders of record as of October 15, 2021. This reflects an increase of $0.02 per share from the prior year.

“While the financial performance during this period of uncertainty has been strong, we are particularly pleased that in this time of great economic distress, the Kish team has been successful at pivoting to focus our resources on the needs of our clients and communities while simultaneously strengthening our balance sheet to respond to any uncertainty that may lie ahead,” said Hayes.

View the full 2021 Third Quarter Financial Statement ›

About Kish Bancorp, Inc.

Kish Bancorp, Inc. is a diversified financial services corporation headquartered in Belleville, PA with executive offices in State College. Kish Bank, a subsidiary of Kish Bancorp, Inc., operates eighteen offices and financial centers serving Centre, Mifflin, Huntingdon, Blair, and Juniata counties, and northeastern Ohio. In addition to Kish Bank, other business units include: Kish Insurance, an independent property and casualty insurance agency; Kish Financial Solutions, which offers trust, fiduciary, and wealth management advisory services; Kish Benefits Consulting, which provides employee benefits consulting services; and Kish Travel, a full-service travel agency. For additional information, please visit www.kishbank.com. KISB is the OTC stock ticker symbol for Kish Bancorp, Inc.