Kish Bancorp, Inc. Announces Fourth Quarter Financial Results

January 23, 2023

PRESS RELEASE

STATE COLLEGE, PA (KISB) – William P. Hayes, Chairman and CEO of Kish Bancorp, Inc., has announced unaudited financial results for the year ended December 31, 2022. Highlights for the year included:

• Strong net income expansion of 30.2% over 2021, driven by sustained loan growth of $145.0 million (16.5%), and more than offsetting $2.5 million in non-recurring PPP income in 2021
• A substantial increase in earnings per share of 29.7% to $4.89, compared to $3.77 in 2021
• A significant expansion in net interest income after provision for loan losses of $5.7 million, or 17.48%
• Healthy internal capital formation, supported by higher retained earnings that grew by 12.3% from the prior year
• Excellent return on shareholders’ equity of 14.95% and return on assets of 1.02%
• A 9.4% increase in the quarterly dividend, representing Kish Bancorp’s 7^th consecutive year of increased dividends
• Low loan charge-offs and healthy credit quality metrics that have remained positive throughout the pandemic
• Continued expansion into contiguous PA counties and sustained production by Kish’s Ohio lending group
• Well-controlled noninterest expense

Kish Bancorp’s total assets ended the period at $1.295 billion, an increase of $63 million, or 5.08%, over total assets of $1.233 billion as of December 31, 2021. Total loans outstanding grew year over year by $145 million, or 16.5%, to $1.024 billion. This growth was over and above the final forgiveness of nearly $10 million in PPP loans since the end of 2021, which, Hayes noted, reflects Kish’s continued powerful expansion of new client relationships.

“Expansion continues to be a top priority for Kish, with 2022 seeing the opening of our new full-service Route 35 microbranch in Mifflintown, as well as our new Pine Grove Mills branch,” said Hayes. “Kish Bank’s expansion into Blair County will take place this summer with the opening of a full-service branch in Altoona at the Logan Valley Boulevard Weis Plaza.”

Investment securities decreased to $169.8 million, a $24.9 million reduction from the year earlier, as cash flows from investment securities helped to fund loan growth. Total deposits grew by $34.5 million to $1.037 billion, an increase of 3.44% from $1.003 billion a year ago, with a continued notable expansion in core deposits created by new customer acquisition. The expansion in core deposits supported the reduction of the Bank’s reliance on high balance municipal deposits and wholesale borrowings.

Net income for the 2022 year was $12.86 million, an increase of $2.98 million, or 30.16%, compared to $9.88 million for 2021. “This follows a 22.91% increase in 2021 over the prior year,” Hayes noted.

Total net interest income after loan loss provision rose $5.69 million, an increase of 17.48%. “When non-recurring PPP loan fees from 2021 are eliminated, net interest income showed an increase of 23% year over year,” said Hayes. “A reduction of $780 thousand in the loan loss provision reflected continued strong loan quality and contributed to favorable results for 2022. The expansion in net interest income also benefited from the increase in interest rates and success in controlling the Bank’s cost of funds in concert with the overall rise in market rates.”

Noninterest income for 2022 increased 6.72% compared to 2021, which is partially attributable to a $482 thousand gain on the sale of Kish’s former operations building, which was replaced by the new Kish Innovation Center. When this gain is removed, noninterest income increased by 2.47%, which reflects positive results by several key nonbanking units despite a decrease in gain on sale of residential mortgage loans of $1.36 million. Strong year-over-year increases in Wealth Management revenue of $361 thousand and Insurance commissions of $166 thousand supported this increase.

Year over year, noninterest expense increased by $2.4 million, or 7.35%, to $35.07 million as of December 31, 2022, compared to $32.67 million the prior year. In part, the increase reflects higher occupancy expense related to the new 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 Board of Directors declared a quarterly dividend in the amount of $0.35 per share, payable January 31, 2023, to shareholders of record as of January 13, 2023. Notably, 2022 marked the 7^th consecutive year of dividend increases for Kish Bancorp and the ninth in the last 10 years, as a 9.4%, increase (or $.03) was declared in the third quarter. Return on shareholders’ equity remained strong at 14.95%, compared to 14.08% in 2021, and earnings per share increased substantially by 29.7% to $4.89, compared to $3.77 the year prior.

View the full fourth 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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