Kish Bancorp, Inc. · OTC:KISB
Kish Bancorp — Shareholder Meeting (May 2018)
53 slides from Kish Bancorp's shareholder meeting presentation, May 9, 2018
Slide 1: Clear Vision, Compelling Results
Clear Vision Compelling Results SY Y /, li
Slide 2: Welcome and Call to Order
Welcome and Call to Order
Slide 3: Agenda for the Annual Meeting
Agenda for the Annual Meeting • Call to Order • Introductions • Close Nominations and Shareholders’ Vote • Remarks – 2017 Highlights and Outlook • Report of the Judges • Adjournment and Refreshments
Slide 4: Remembrance
Remembrance William E. Brindel June 23, 1919–November 22, 2017
Slide 5: Director Introductions
Director Introductions
Slide 6: Mission
Mission To achieve sustained success through an unwavering focus on fulfilling our clients’ financial needs.
Slide 7: 2017 in Review
2017 in Review
Slide 8: 2017 Highlights
2017 Highlights • Market disruption • BMG joins Kish • Client acquisition • Loan & deposit growth • Aligning the team • Market share expansion • Affiliate performance • Record earnings • Shareholder performance
Slide 9: 2017 Financial Highlights
2017 Financial Highlights
Slide 10: Total Assets
Total Assets ($ in millions) $850 $811 $800 $750 $725 $697 $700 $660 $650 $630 $600 $550 $500 $450 $400 $350 2013 2014 2015 2016 2017
Slide 11: Gross Loans
Gross Loans ($ in millions) $600 $575 $550 $495 $500 $451 $450 $420 $400 $387 $350 $300 $250 2013 2014 2015 2016 2017
Slide 12: Total Deposits
Total Deposits ($ in millions) $660 $654 $640 $620 $600 $580 $562 $560 $543 $540 $520 $509 $500 $494 $480 $460 $440 2013 2014 2015 2016 2017
Slide 13: Market Share of Bank Deposits
Market Share of Bank Deposits Mifflin County 5-Year Deposit Compound Annual Growth Rate (CAGR) 2017 2016 2017 Kish Bank 42.05% 42.11% Kish Bank 3.57% Juniata Valley Bank 23.54% 22.85% Mifflin County Market 1.37% First National Bank 13.29% 13.41% of PA Mifflin County SB 12.60% 12.91% Citizens Bank 4.
Slide 14: Market Share of Bank Deposits
Market Share of Bank Deposits Huntingdon County 5-Year Deposit Compound Annual Growth Rate (CAGR) 2017 2016 2017 Community State 31.61% 32.60% Bank of Orbisonia Kish Bank 3.69% First National Bank 23.79% 23.23% Huntingdon County Market 1.06% of PA Kish Bank 18.23% 17.56% Riverview Bank 11.92% 12.00%
Slide 15: Market Share of Bank Deposits
Market Share of Bank Deposits Centre County 5-Year Deposit Compound Annual Growth Rate (CAGR) 2017 2016 2017 PNC Bank 23.74% 22.56% Kish Bank 12.39% First National Bank 17.02% 17.58% of PA Centre County Market 5.61% BB&T 11.87% 13.33% Citizens Bank of PA 9.11% 9.21% M&T Trust Co. 7.64% 7.83% Northwe
Slide 16: Loan Mix
Loan Mix ($ in thousands) Residentail RE Consumer and Others State & Political Agricultural Comm & Ind Comm RE - 50,000 100,000 150,000 200,000 250,000 2017 Gross Loans: $574,708,035 2017 vs. 2016 Loan Growth: 16.20%
Slide 17: Loans/Deposits
Loans/Deposits 100.00% KISB PA Peers¹ 95.00% 90.00% 86.95% 87.05% 85.00% 82.09% 81.41% 80.00% 77.12% 75.00% 70.00% 2013 2014 2015 2016 2017 ¹ Includes all public banks with assets between $300mm to $1B Source: FFIEC Uniform Bank Performance Report
Slide 18: Income Highlights
Income Highlights 2017 2016 • Strong growth in net Net Interest Income $ 23,101,275 $ 20,867,911 interest income; increased Provision for loan losses 600,000 530,000 by 10.7% or $2.2 million Noninterest Income 6,524,463 7,095,827 • Timely EOY investment Securities Gains 101,117 773,237 losses taken
Slide 19: Net Income
Net Income ($ in thousands) $5,060 $5,000 $4,617 $4,494 $4,500 $4,359 $4,217 $4,140 $4,000 $3,500 $3,000 2013 2014 2015 2016 2017 Before 2017 After Tax Tax Cut Cut
Slide 20: Net Interest Income and Margin
Net Interest Income and Margin ($ in thousands) $24,000 Net Interest Income ($000s) Net Interest Margin 4.00% $23,101 $23,000 3.80% $22,000 $20,868 $21,000 3.60% $20,000 $19,661 3.40% $19,000 $18,630 $18,000 $17,537 3.20% $17,000 $16,000 3.00% 2013 2014 2015 2016 2017
Slide 21: Noninterest Income
Noninterest Income ($ in thousands) $7,500 $7,096 $7,000 $6,748 $6,492 $6,524 $6,459 $6,500 $6,000 $5,500 $5,000 2013 2014 2015 2016 2017
Slide 22: Noninterest Expense
Noninterest Expense ($ in thousands) Salaries Occupancy Data Processing All Other $25,000 $23,884 $22,179 $21,049 $19,915 $19,692 $20,000 $15,000 $10,000 $5,000 2013 2014 2015 2016 2017
Slide 23: Return on Average Equity
Return on Average Equity 12.00% 10.00% 9.70% 9.54% 8.89% 8.54% 8.20% 8.00% 7.45% 6.00% 4.00% 2013 2014 2015 2016 Before Tax Cut After Tax Cut 2017 2017
Slide 24: Return on Average Assets
Return on Average Assets 0.80% 0.69% 0.65% 0.70% 0.67% 0.66% 0.59% 0.60% 0.54% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% 2013 2014 2015 2016 Before Tax After Tax Cut Cut 2017 2017
Slide 25: Net Charge-Offs/Avg. Loans
Net Charge-Offs/Avg. Loans 0.35% KISB PA Peers¹ 0.30% 0.25% 0.20% 0.15% 0.15% 0.12% 0.11% 0.10% 0.05% 0.05% 0.05% 0.01% 0.00% 2012 2013 2014 2015 2016 2017 ¹ Includes Bank Operating Companies in PA with $500mm to $1B in Assets Source: SNL Financial
Slide 26: Nonaccrual Loans/Loans
Nonaccrual Loans/Loans KISB PA Peers¹ 3.00% 2.50% 2.00% 1.53% 1.60% 1.50% 1.27% 1.14% 1.00% 0.81% 0.50% 0.00% 2013 2014 2015 2016 2017 ¹ Includes Bank Operating Companies in PA with $500mm to $1B in Assets Source: SNL Financial
Slide 27: Loans 30-89 Days Past Due
Loans 30-89 Days Past Due KISB Peers¹ 1.00% 0.90% 0.80% 0.70% 0.60% 0.52% 0.50% 0.40% 0.30% 0.20% 0.12% 0.13% 0.10% 0.07% 0.05% 0.00% 2013 2014 2015 2016 2017 ¹ Includes all public banks with assets between $300mm to $1B Source: FFIEC Uniform Bank Performance Report
Slide 28: Stock Performance (EOY)
Stock Performance (EOY) $60 $59 $58 $55 $50 $46 $45 $43 $40 $39 $35 $35 $33 $30 $25 2012 2013 2014 2015 2016 2017 Current¹ ¹ Stock price as of 4/12/2018
Slide 29: Dividend Yield on Common Stock
Dividend Yield on Common Stock 7.00% KISB PA Peers¹ National Peers¹ 6.00% 5.00% 4.70% 4.24% 4.00% 3.74% 4.00% 3.17% 3.00% 2.00% 1.00% 2013 2014 2015 2016 2017 ¹ Includes Bank Operating Companies in PA and Nationally with $500mm to $1B in Assets Source: SNL Financial
Slide 30: Market Disruption
Market Disruption • Continued mergers and acquisitions – BB&T – Community banks • Fintech
Slide 31: BMG Joins Kish
BMG Joins Kish December 2017
Slide 32: Building the Team
Building the Team
Slide 33: Senior Management Promotions
Senior Management Promotions • Greg Hayes – President and COO • Ric Sarfert – EVP, Chief Lending Officer • Jim Shilling – EVP, Chief Business Services Officer • Tom Minichiello – SVP, Head of Retail Banking • Doug Baxter – SVP, Accounting & Controls Manager • Kim Bubb – VP, Client Solutions and Oper
Slide 34: Management Org. Chart
Management Org. Chart Chairman & CEO William Hayes Executive Assistant to the CEO | Amanda Dutrow [ [ [ l ee . Human Resources & General Counsel Chief Financial Officer CEO, Kish Agency Organizational Development Robert McMinn, EVP Mark Cvrkel, EVP Jeffrey Wilson, VP Director Suzanne White, SVP [ 2
Slide 35: National Recognition
National Recognition • Ranked in American Banker magazine’s list of Top 200 Community Banks in the United States for 12 consecutive years • Bauer 5 Star Rating
Slide 36: Focused
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Slide 37: Our long term focus… has been our focus.
Our long term focus… has been our focus.
Slide 38: Mission
Mission To achieve sustained success through an unwavering focus on fulfilling clients’ financial needs.
Slide 39: Shifting Focus on the Client
Shifting Focus on the Client Then and now: What we know about our client How they want to engage and connect What is considered a transaction
Slide 40: Last Year
Last Year • Digital natives and mobile banking revolution • Fintech disruption • Barriers to entry creating partnerships • Banks must offer digital services
Slide 41: This Year
This Year • Growth in blockchain & cryptocurrency • Amazon and banking - GAFA • Alibaba approach • Expanding use of artificial intelligence • Community bank opportunities to partner And then: • Facebook data breach
Slide 42: Trust Builds Relationships
Trust Builds Relationships Client know us and there is always someone they can call. We are here and decisions affecting the client are made here.
Slide 43: Going Digital
Going Digital Establishing the partnership for the digital platform of the future. Utilizing data in every decision and recommendation that we make. Redesigning the technology infrastructure for the future.
Slide 44: It Is All About Our People
It Is All About Our People Creation of the Private Client Group Transition of Tellers to Personal Bankers New alignment of leadership for Business Services
Slide 45: Maintaining Trust
Maintaining Trust Managing cyber security threats Providing information and education Enhancing our fraud solutions
Slide 46: Living Up to Our Brand
Living Up to Our Brand Measure the Kish Experience Tell our story through our clients Maintain our focus on our values Establish our WHY!
Slide 47: People don't buy what you do, they buy WHY you do it
“People don’t buy what you do, they buy WHY you do it.” —Simon Sinek
Slide 48: Why do we do it?
Why do we do it? WHY Do You Do Wt You Do? WHAT'S THE pyproge % WHIT Do You Doe
Slide 49: Mission
Mission To achieve sustained success through an unwavering focus on fulfilling clients’ financial needs.
Slide 50: 2018 to 2020 Strategic Plan Summary
KISH expect more MISSION Frat 2018 to 2020 feats ing Strategic Plan Summary Kish will be the recognized leader in VISION corimurity banking, travel, in our region KISH VALUE PROPOSITION Build the Tearn LONG Foci Cushy TERM 3} Customer Base PRIORITIES Align With ie Con nip Deliver Financial Performan
Slide 51: Summary
Summary
Slide 52: Congratulations, Directors!
Congratulations, Directors!
Slide 53: Clear Vision, Compelling Results
Clear Vision Compelling Results SY Y /, li