Kish Bancorp, Inc. · OTC:KISB
Kish Bancorp — Shareholder Meeting (June 2020)
32 slides from Kish Bancorp's shareholder meeting presentation, Jun 4, 2020
Slide 1: 2020 Virtual Annual Shareholder Meeting
expect po more MORE — AMISH 2020 Virtual Annual Shareholder Meeting
Slide 2: Mission
Mission To achieve sustained success through an unwavering focus on fulfilling our clients’ financial needs. 2
Slide 3: Class 1 Directors
Class 1 Directors CLASS 1 DIRECTORS WHOSE TERMS EXPIRE IN 2020 Director of Corporation/ Name Age Principal Occupation Bank Since Eric J. Barron 68 President, The Pennsylvania State University 2018 William L. Dancy 73 Retired, President and Owner, J. M. Young & Sons, Inc. 2003/2003 Gregory T. Hayes 4
Slide 4: Class 2 and 3 Directors
Class 2 and 3 Directors • William P. Hayes • James J. Lakso • William S. Lake • Spyros A. Degleris • Edward A. Friedman • George V. Woskob • Frances V. Vaughn • Kathleen L. Rhine 4
Slide 5: Second Order of Business
Second Order of Business • Amendment to Restricted Stock Plan of 1988 5
Slide 6: 2019 Review
2019 Review KISH BANCORP
Slide 7: Strong Board
Strong Board The Board of Directors of Kish Bancorp, Inc. Front row: Kathleen Rhine, Bill Hayes, Greg Hayes, and Fran Vaughn. Back row: Eric Barron, Bill Lake, George Woskob, Paul Howes, Bill Dancy, Jim Lakso, Paul Silvis, and Spyros Degleris. Not pictured: Ed Friedman. 7
Slide 8: Executive Leadership
Executive Leadership William P. Hayes Gregory T. Hayes Robert S. McMinn, Mark J. Cvrkel Peter D. Collins Richard A. Sarfert Suzanne M. White Esq. Chairman & Chief President & Chief Executive Vice President, Executive Vice President, Executive Vice President, Senior Vice President, Executive Officer
Slide 9: 2019 Highlights
2019 Highlights • Sustained Growth • Earnings Performance across All Business Units • Market Share Gains • High Quality Balance Sheet • Prudent Capital Management and Return on Equity • Twin Rails Approach to Innovation and Transformation • Insurance Agency Acquisition • Preparedness 9
Slide 10: Sustained Growth Over Time
Sustained Growth Over Time Total Assets ($ in millions) Total Gross Loans ($ in millions) $950 $918 $700 $690 $900 $637 $851 $650 $850 $811 $600 $576 $800 $550 $750 $725 $496 $697 $500 $700 $660 $452 $650 $630 $450 $420 $387 $600 $400 $374 $371 $557 $560 $558 $358 $550 $350 $500 $300 2010 2011 2012
Slide 11: Asset Quality
Asset Quality Loan Delinquency (% of total loans) Net Charge-Offs / Average Loans 2.50% KISB Peers¹ 0.35% KISB Peers¹ 2.11% 0.30% 2.00% 0.25% 1.61% 0.20% 0.17% 1.50% 1.31% 1.26% 0.15% 0.11% 0.94% 1.00% 0.10% 0.06% 0.05% 0.05% 0.01% 0.00% 0.50% 0.22% 0.00% 0.06% 2013 2014 2015 2016 2017 2018 2019 -0.
Slide 12: Markets
Markets Mifflin Deposit Market Share • 9 locations Market Deposits Market Total • Ranked #1 with 43.66% of deposit market share County Share in Market Share Market Rank ($000) (%) ($000) Huntingdon Mifflin, PA 1 347,172 43.66% 795,209 • 3 locations Huntingdon, PA 3 133,987 21.58% 620,935 • Ranked #3
Slide 13: Capital Summary
Capital Summary • Quality • Appropriate leverage • Retained earnings • Performance that engenders trust • Risk Management Fina ncia l da ta a s of December 31, 2019 13
Slide 14: Return on Equity Price/Tangible Book
Return on Equity Price/Tangible Book 16.00% KISB Peers¹ 250% KISB Peers¹ 14.00% 200% 12.00% 11.56% 10.71% 9.70% 143.60% 9.54% 150% 136.20% 10.00% 8.89% 8.54% 125.30% 111.00% 107.71% 107.70% 8.00% 7.45% 99.70% 100% 6.00% 50% 4.00% 2.00% 0% 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2
Slide 15: Profitability
Profitability Net Income ($ in thousands) Net Interest Income ($ in thousands) 8,000 30,000 27,538 7,007 25,757 7,000 6,030 25,000 23,101 20,868 6,000 19,661 4,617 20,000 18,630 5,000 4,494 17,537 4,217 4,359 4,140 4,000 15,000 3,000 10,000 2,000 5,000 1,000 0 0 2013 2014 2015 2016 2017 2018 2019 20
Slide 16: Bank & Non-Bank Fee Income Expansion
Bank & Non-Bank Fee Income Expansion • Bank and Non-Bank Business Revenues – Diversified sources of revenue Non-Interest Income ($ in thousands) 8,502 – Wealth management 9,000 8,000 7,440 7,096 • 2019 revenue of $1.6 million up 8.34% over 2018 7,000 6,460 6,492 6,748 6,423 – Kish Insurance recurrin
Slide 17: 2020 to 2022 Strategic Plan
2020 to 2022 Strategic Plan KISH BANCORP
Slide 18: 2020 to 2022 Strategic Plan Summary
KISH expect more MISSION KISH VALUE PROPOSITION For people and businesses that value personalized ee Piers attention and want to build a strong financial future, ett ener Kish delivers customized financial solutions that beat 2020 to 2022 CEST hinineee the competition with local, knowledgeable, cari
Slide 19: 2020 Areas of Strategic Focus
2020 Areas of Strategic Focus • Expanding Team Capacity – We will achieve a high performing team through a focus on elevating knowledge. • Increasing Client Intimacy – We will achieve a higher level of customer intimacy to better serve them. • Fostering Community Well-Being – We will understand the
Slide 20: Existing Strategies
Existing Strategies • Brand Strategy – We will execute on the evolution of the Kish Brand as the market leader in banking, Insurance, Wealth, Benefits Consulting, and Travel. • Growth Strategy – We will execute our growth strategy that will double the size of the organization in 5 years, well beyond
Slide 21: A Vision for Kish 2020 – Update
A Vision for Kish 2020 – Update Kish Innovation • Kish Core Transformation • Kish Innovation Center • Kish Technology Modernization 21
Slide 22: Kish Core Transformation
Kish Core Transformation • Simplified Solutions – New banking solutions that are simplified and powerful • Digital Tools – Digital banking access to do more, anytime, anywhere • Empowered People – Making Kish better, to better serve you 22
Slide 23: Kish Innovation Center
Kish Innovation Center • Human Side of Innovation – Empowering people through a focus on quality and development • Scalability of Growth – The foundation of our ability to do more with less • Branch of the Future & Call Center – Digital client support for the future of Kish 23
Slide 24: Kish Technology Innovation
Kish Technology Innovation • Connectivity as a foundation – SDWAN architecture with 10X current speeds and redundancy • Best-in-class Information Security – Real-time cyber monitoring program • Cloud-based solutions – Scalable phone and computing solutions that expand our ability to deliver solution
Slide 25: COVID-19 Impact
COVID-19 Impact KISH BANCORP
Slide 26: Fast Response
Fast Response • PPP loans • Mortgage originations • Commercial and mortgage loan deferrals 26
Slide 27: Shareholder Focus
Shareholder Focus • Strong organic revenue growth and scalable infrastructure leading to double digit growth in EPS and return on shareholder equity • Net income of $7.0 million in 2019 compared to $4.4 million in 20141 • Earnings per share $2.80 in 2019 compared to $1.82 in 20141 • Market Valuation
Slide 28: Why Invest in Kish Bancorp?
Why Invest in Kish Bancorp? • A market leader in Central Pennsylvania with rapidly expanding market share History of Strong Growth, • Average annual return on equity of 9.51% since 1990 Performance, and Innovation • Earnings growth in last two years of 16.2% and 45.0% respectively • First PA bank wi
Slide 29: Core Philosophy
Core Philosophy “We believe that we can make the lives of those around us—our employees, our clients, and our communities—better.” 29
Slide 30: Questions?
Questions? KISH BANCORP
Slide 31: Voting Results
Voting Results KISH BANCORP
Slide 32: 2020 Virtual Annual Shareholder Meeting
expect po more MORE — AMISH 2020 Virtual Annual Shareholder Meeting