Kish Bancorp, Inc. Announces Second Quarter Financial Results

July 15, 2022

PRESS RELEASE

STATE COLLEGE, PA (KISB) – William P. Hayes, Chairman and CEO of Kish Bancorp, Inc., has announced unaudited financial results for the six-month period ending June 30, 2022. Highlights for the first half of 2022 included:

• Consistently strong core earnings offsetting a decline of $1.6 million in non-recurring PPP loan fees and almost $700 thousand in mortgage loan originations fees compared to the first half of 2021
• Total deposit growth of 7.8% and sustained loan growth of 9.9% that drove a significant expansion in net interest income
• Strong internal capital formation supported by healthy retained earnings, up 9.3% from the prior year, while maintaining excellent return on shareholders’ equity of 13.35%
• Healthy credit quality metrics that have remained positive throughout the pandemic
• Continued expansion into contiguous Pennsylvania counties
• Sustained production by Kish’s northeastern Ohio lending group
• Well-controlled noninterest expense that remained level year over year

Kish Bancorp’s total assets ended the period at $1.219 billion, an increase of $59.7 million, or 5.15%, compared to total assets of $1.159 billion as of June 30, 2021. Total loans outstanding grew year over year by $84.6 million to $941.4 million, or 9.87%, despite the final forgiveness of nearly $41 million in PPP loans since June 30, 2021. Investment securities increased to $183.1 million, a $5.6 million increase from a year earlier, as this category of earning assets became more attractive due to rising interest rates. Total deposits grew by $72.6 million to $1.001 billion, an increase of 7.82% from $928.8 million a year ago, with a continued notable expansion in core deposits created by new customer acquisition.

“Net income for the six months of 2022 was $5.36 million—an increase of $146 thousand, or 2.79%, compared to $5.22 million for the same period in 2021. When non-recurring PPP loan fees are eliminated, where these fees were recorded, net interest income showed an increase of 7.2% year over year,” said Hayes. He continued, “A reduction of $500 thousand in the loan loss provision reflected continued strong loan quality and also contributed to favorable results for the first half of 2022. Finally, the expansion in net interest income also benefitted from the increase in interest rates and the ability to manage our cost of funds.”

Noninterest income for the first six months of 2022 decreased 3.95% overall, compared to the same period last year. “This is mainly attributable to a decline in gains on the sale of residential mortgage loans of $692 thousand, as higher mortgage rates slowed demand,” Hayes explained. “This decrease was offset in large part due to strong results by several key nonbanking Kish units, with year-over-year increases in Wealth Management revenue of $310 thousand and Insurance commissions of $186 thousand.”

Year over year, noninterest expense increased by $239 thousand, or 1.46%, to $16.68 million as of June 30, 2022, compared to $16.44 million the prior year. In part, the increase reflects higher occupancy expense related to the opening of the new Kish Innovation Center in Reedsville and higher data processing fees associated with a strong expansion in new customer numbers. All other expense categories were well controlled when compared to the prior year.

The Board of Directors declared a quarterly dividend in the amount of $0.32 per share, payable July 29, 2022, to shareholders of record as of July 15, 2022. Return on shareholders’ equity continued to be strong at 13.35%.

View the full 2022 Second 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 and an Innovation Center in Reedsville. Kish Bank, a subsidiary of Kish Bancorp, Inc., operates 16 offices and financial centers serving Centre, Mifflin, Huntingdon, Blair, and Juniata counties, and a Loan Production Office in Hudson, 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 MyKish.com. KISB is the OTC stock ticker symbol for Kish Bancorp, Inc.

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