Kish Bancorp, Inc. Announces Third Quarter Financial Results, Notes Seventh Consecutive Year of Increased Dividends

October 18, 2022

PRESS RELEASE

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

• Powerful expansion in net income of 20% over the prior year, and more than offsetting $2.6 million in non-recurring income in the first nine months of 2021
• 9.4% increase in the quarterly dividend, representing the seventh consecutive year of increased dividends
• Total deposit growth of 8.1% that combined with sustained loan growth of 14.4% to drive a significant expansion in net interest income
• Strong internal capital formation supported by higher retained earnings, up 10.8% from the prior year
• Excellent return on shareholders’ equity of 14.5%
• Healthy credit quality metrics that have remained positive throughout the pandemic
• Continued expansion into contiguous Pennsylvania counties and sustained production by the northeastern Ohio lending group
• Well-controlled noninterest expense

Kish Bancorp’s total assets ended the period at $1.285 billion—an increase of $88 million, or 7.36%, compared to total assets of $1.197 billion as of September 30, 2021. Total loans outstanding grew year over year by $124 million, or 14.35%, to $988.3 million. “This increase is over and above the final forgiveness of nearly $22 million in PPP loans since September 30, 2021 and reflects the continued rapid expansion of new client relationships,” Hayes noted. He added, “Expansion remains a significant area of focus for Kish with the recent opening of a new branch location in Pine Grove Mills and the upcoming November opening of the new Mifflintown full-service banking office at the Kish Insurance location (previously Sausman) on Route 35. Expansion in Blair County will occur in late spring with the anticipated opening of a full-service branch in Altoona at the Logan Valley Boulevard Weis Plaza.”

Investment securities decreased to $172.5 million, a $10.7 million decrease from the year earlier, as cash flows from investment helped to fund loan growth. Total deposits grew by $77.8 million to $1.043 billion, an increase of 8.05% from $965.7 million a year ago, with a continued notable expansion in core deposits created by new customer acquisition.

In highlighting the period’s strong net income expansion, Hayes said, “Net income for the nine months ended September 30, 2022, was $9.05 million—an increase of $1.5 million, or 20%, compared to $7.56 million for the same period in 2021. Total net interest income rose $2.336 million, an increase of 9.27%. When non-recurring PPP loan fees from 2021 are eliminated, net interest income showed an increase of 16.4% year over year.” He continued, “A reduction of $780,000 in the loan loss provision reflected continued strong loan quality and also contributed to favorable results for the first nine months 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 in concert with the overall rise in market rates.”

Noninterest income for the first nine months of 2022 decreased 1.43% overall compared to the same period last year, which, Hayes observed, is mainly attributable to a $959,000 decline in gains on the sale of residential mortgage loans as higher interest rates dramatically slowed mortgage demand. “This decrease was offset in large part due to strong results by several key nonbanking units, with year-over-year increases in Wealth Management revenue of $470,000 and Insurance commissions of $172,000,” said Hayes, adding, “Kish Bancorp’s compounding earnings momentum is especially noteworthy given the 22.9% growth of net income in 2021 over 2020.”

Year over year, noninterest expense increased by $1.04 million, or 4.24%, to $25.62 million, compared to $24.58 million the prior year. In part, the increase reflects higher occupancy expense related to the opening of the Kish Innovation Center 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 Kish Bancorp Board of Directors declared a quarterly dividend in the amount of $0.35 per share, payable October 31, 2022, to shareholders of record as of October 14, 2022. The increase of $0.03 over the prior quarterly dividend represents an increase of 9.4%. Hayes highlighted the significance of this increase, stating, “2022 marks the seventh consecutive year of dividend increases and the ninth in the last 10 years. Return on shareholders’ equity remained strong at 14.51%.”

View the full 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 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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