Kish Bancorp, Inc. · OTC:KISB
Kish Bancorp — Shareholder Meeting (May 2014)
58 slides from Kish Bancorp's shareholder meeting presentation, May 20, 2014
Slide 1: Doing what matters. KISH 2014 Annual Shareholder Meeting
Doing what matters. KISH 2014 Annual expect more Shareholder Meeting
Slide 2: Welcome and Call to Order
Welcome and Call to Order
Slide 3: Mission
Mission With an unwavering focus on fulfilling client needs, we will achieve superior, long-term shareholder returns.
Slide 4: Introduction of Board Nominees
Introduction of Board Nominees • William L. Dancy • Paul G. Howes • J. Bradley Scovill
Slide 5: Introduction
Introduction • Edward A. Friedman
Slide 6: 2013 Highlights
2013 Highlights • Client Focus • Charter Conversion • Balance Sheet Growth • Building & Aligning the Team • Market Share • Affiliate Performance • Record Financial Results • Shareholder Performance
Slide 7: 2013 Financial Highlights
2013 Financial Highlights
Slide 8: Net Income ($ in thousands)
Net Income ($ in thousands) $4,500 $4,217 $4,074 $4,000 $3,934 $3,938 $3,848 $3,779 $3,631 $3,630 $3,556 $3,500 $3,213 $3,000 $2,500 $2,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 9: Earnings Per Share
Earnings Per Share $4.00 $3.74 $3.69 $3.58 $3.54 $3.47 $3.50 $3.36 $3.37 $3.35 $3.04 $3.05 $3.00 $2.50 $2.00 $1.50 $1.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 10: Balance Sheet Trends ($ in millions)
Balance Sheet Trends ($ in millions) $700 Assets Deposits Loans $630 $600 $557 $560 $558 $527 $494 $500 $476 $454 $455 $460 $446 $412 $413 $408 $396 $400 $357 $353 $332 $387 $319 $373 $374 $369 $301 $358 $300 $282 $337 $249 $309 $291 $270 $200 $231 $197 $100 $0 2003 2004 2005 2006 2007 2008 2009 201
Slide 11: Net Interest Income ($ in thousands)
Net Interest Income ($ in thousands) $20,000 $18,000 $17,243 $17,537 $16,988 $16,816 $16,000 $15,525 $14,138 $14,000 $11,830 $12,107 $12,000 $10,978 $10,536 $10,000 $8,000 $6,000 $4,000 $2,000 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 12: Net Interest Margin
Net Interest Margin KISB PA Peers¹ National Peers¹ 5.00% 4.00% 3.53% 3.52% 3.54% 3.28% 3.35% 3.26% 3.19% 3.18% 3.25% 3.14% 3.08% 3.00% 2.00% 1.00% 0.00% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ¹ Includes Bank Operating Companies in PA and Nationally with $500mm to $1B in Assets Source
Slide 13: Noninterest Income ($ in thousands)
Noninterest Income ($ in thousands) $8,000 Deposit Svc Fees Mortgage Origination Fees Insurance KFS Sec Gains Travel $6,979 $7,000 $6,460 $6,240 $5,923 $6,000 $5,305 $5,000 $4,618 $4,439 $3,798 $4,000 $3,000 $2,000 $1,000 $0 2006 2007 2008 2009 2010 2011 2012 2013
Slide 14: Total Revenue Mix ($ in thousands)
Total Revenue Mix ($ in thousands) $30,000 Net Int Inc Bank Svc Fees Insurance Sec Gains KFS Travel $25,000 $23,997 $23,795 $23,228 $23,166 $20,830 $20,000 $17,936 $16,448 $16,546 $15,000 $10,000 $5,000 $0 2006 2007 2008 2009 2010 2011 2012 2013
Slide 15: Noninterest Income/Operating Revenue (%)
Noninterest Income/ Operating Revenue (%) KISB PA Peers¹ National Peers¹ 45% 40% 39% 39% 35% 30% 30% 28% 26% 27% 27% 26% 25% 24% 23% 22% 20% 15% 10% 5% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ¹ Includes Bank Operating Companies in PA and Nationally with $500mm to $1B in Assets Sour
Slide 16: Noninterest Expense ($ in thousands)
Noninterest Expense ($ in thousands) $25,000 $19,915 $20,000 $19,356 $18,436 $17,149 $14,900 $15,000 $12,819 $11,417 $11,357 $11,542 $10,749 $10,000 $5,000 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 17: Noninterest Expense/Average Assets (%)
Noninterest Expense/ Average Assets (%) 4.50% KISB PA Peers¹ National Peers¹ 4.00% 3.73% 3.74% 3.58% 3.50% 3.44% 3.08% 3.27% 3.00% 2.86% 2.92% 2.79% 2.75% 2.72% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ¹ Includes Bank Operating Companies in PA and Na
Slide 18: Asset Quality
Asset Quality
Slide 19: Nonperforming Assets/Total Assets
Nonperforming Assets/ Total Assets KISB PA Peers¹ National Peers¹ 4.00% 3.50% 3.00% 2.50% 2.00% 1.67% 1.73% 1.50% 1.30% 1.34% 1.11% 1.00% 0.80% 0.71% 0.55% 0.43% 0.50% 0.33% 0.29% 0.00% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ¹ Includes Bank Operating Companies in PA and Nationally wi
Slide 20: Classified Assets to Capital
Classified Assets to Capital
Slide 21: Reserves/Gross Loans
Reserves/Gross Loans KISB PA Peers¹ National Peers¹ 2.25% 2.00% 1.90% 1.92% 1.75% 1.67% 1.53% 1.50% 1.44% 1.24% 1.25% 1.01% 1.00% 1.02% 0.97% 0.98% 1.00% 0.75% 0.50% 0.25% 0.00% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ¹ Includes Bank Operating Companies in PA and Nationally with $500m
Slide 22: Net Charge-Offs/Average Loans
Net Charge-Offs/Average Loans 1.50% KISB PA Peers¹ National Peers¹ 1.25% 1.00% 0.75% 0.50% 0.45% 0.35% 0.25% 0.18% 0.12% 0.05% 0.07% 0.01% 0.03% 0.01% 0.00% 0.00% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ¹ Includes Bank Operating Companies in PA and Nationally with $500mm to $1B in Ass
Slide 23: Loans 30-89 Days Past Due
Loans 30-89 Days Past Due KISB Peers¹ 2.00% 1.75% 1.50% 1.25% 1.13% 1.00% 0.73% 0.75% 0.63% 0.54% 0.52% 0.50% 0.50% 0.34% 0.28% 0.25% 0.17% 0.19% 0.07% 0.00% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ¹ Includes all public banks with assets between $300mm to $1B Source: FFIEC Uniform Ban
Slide 24: Capital
Capital
Slide 25: Consolidated Capital Ratios: Leverage Ratio
Consolidated Capital Ratios Leverage Ratio 12.00% KISB Well Capitalized¹ 10.00% 8.6% 8.2% 8.4% 8.3% 8.2% 8.0% 8.00% 7.7% 7.6% 7.4% 7.2% 6.00% 4.00% 2.00% 0.00% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ¹ FDIC minimum to be considered “Well Capitalized”
Slide 26: Consolidated Capital Ratios: Total Capital Ratio
Consolidated Capital Ratios Total Capital Ratio KISB Well Capitalized¹ 16.00% 13.9% 14.1% 14.00% 13.2% 12.00% 11.7% 11.2% 11.1% 11.3% 10.7% 10.4% 10.4% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ¹ FDIC minimum to be considered “Well Capitalized”
Slide 27: Building the Team
Building the Team
Slide 28: Senior Management Promotions & Alignment
Senior Management Promotions & Alignment • Brad Scovill, President, Chief Operating Officer • Sangeeta Kishore, Sr. EVP, Chief Financial Officer and Senior Risk Officer • Greg Hayes, Sr. VP, Systems and Client Solutions • Deb Weikel, Sr. VP, Loan Administration • Kim Bubb, VP, Services and Systems M
Slide 29: Organizational Alignment: Doing What Matters
Organizational Alignment: Doing What Matters • Sales • Client Solutions • Enterprise Risk Management
Slide 30: Client Support Services Group
Client Support Services Group
Slide 31: Market Share
Market Share
Slide 32: Market Presence: Mifflin County
Market Presence Mifflin County - #1 Ranking 45.0% 40.0% 35.0% 30.0% Kish Bank Juniata Valley Bank 25.0% FNB 20.0% Mifflin County Savings Bank Northwest Savings Bank 15.0% Citizens Bank 10.0% 5.0% 0.0% 2007 2008 2009 2010 2011 2012 2013 Source: www.snl.com, Data as of 12/31/2013
Slide 33: Market Presence: Huntingdon County
Market Presence Huntingdon County - #3 Ranking 40.0% 35.0% 30.0% Community State Bank of 25.0% Orbisonia FNB 20.0% Kish Bank 15.0% Clearfield Bank & Trust 10.0% Northwest Savings Bank Juniata Valley Bank 5.0% 0.0% 2007 2008 2009 2010 2011 2012 2013 Source: www.snl.com, Data as of 12/31/2013
Slide 34: Market Presence: Centre County
Market Presence Centre County - #8 Ranking 20.0% PNC FNB National Penn Bank 15.0% Citizens Bank M&T 10.0% Northwest Savings Bank Jersey Shore Bank CNB Bank 5.0% Kish Bank Susquehanna Bank Santander Bank 0.0% 2007 2008 2009 2010 2011 2012 2013 Source: www.snl.com, Data as of 12/31/2013
Slide 35: Building the Brand
Building the Brand
Slide 36: Doing What Matters
Doing What Matters “Kish is the local bank with the sophistication to fulfill my needs.”
Slide 37: Community Alignment
Community Alignment
Slide 38: Mifflin County
Mifflin County
Slide 39: Mifflin County
Mifflin County
Slide 40: Huntingdon County
Huntingdon County
Slide 41: Huntingdon County
Huntingdon County
Slide 42: Centre County
Centre County =——_- <i 7S
Slide 43: Centre County
Centre County
Slide 44: Shareholder Performance
Shareholder Performance
Slide 45: Return on Average Equity
Return on Average Equity 20.0% KISB PA Peers¹ National Peers¹ 18.0% 16.0% 15.3% 14.0% 13.3% 13.0% 13.3% 12.8% 12.0% 10.3% 9.7% 9.8% 9.7% 10.0% 8.6% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ¹ Includes Bank Operating Companies in PA and Nationally with $500mm to
Slide 46: Dividend Yield on Common Stock
Dividend Yield on Common Stock 7.00% KISB PA Peers¹ National Peers¹ 6.00% 5.89% 5.59% 5.31% 4.95% 5.00% 4.75% 4.70% 4.24% 4.00% 3.34% 3.00% 2.81% 2.56% 2.41% 2.00% 1.00% 0.00% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ¹ Includes Bank Operating Companies in PA and Nationally with $500mm
Slide 47: Price/Book Value
Price/Book Value 300% KISB PA Peers¹ National Peers¹ 250% 197% 200% 185% 189% 164% 150% 133% 107% 103% 93% 100% 92% 86% 80% 50% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ¹ Includes Bank Operating Companies in PA and Nationally with $500mm to $1B in Assets Source: SNL Financial
Slide 48: Stock Performance
Stock Performance Year-end 2009 – March 2014 $40.00 $39.00 $38.00 $37.00 $36.50 $36.00 $35.00 $34.50 $34.13 $34.00 $32.75 $33.00 $32.00 $31.00 $30.50 $30.00 $29.00 $29.00 $28.00 $27.00 $26.00 $25.00 2009 2010 2011 2012 2013 Mar-2014
Slide 49: Summary
Summary
Slide 50: Financial Summary
Financial Summary • Double digit growth in assets • Record net income • Diversified revenue mix and strong business unit performance • Improved efficiencies and reduced operating expenses • Improved risk profile • Conversion and FDIC exam validation • Value-added business model
Slide 51: Strategic Opportunities
Strategic Opportunities
Slide 52: Strategic Focus
Strategic Focus • Growth – Expand the bank franchise in designated growth markets – Pursue opportunities for non-bank business expansion – Achieve market share objectives • Maintain a strong balance sheet – Focus on asset quality metrics – Sustained profitability and performance • Grow the team
Slide 53: Strategic Focus, cont'd.
Strategic Focus, cont’d. • Manage risk profile – Maintain strong enterprise wide risk management program • Position company to pursue strategic opportunities – Target bank and non-bank acquisitions in attractive markets – Kish Bancorp stock • Promote the Brand – Network with our friends and associat
Slide 54: Risk Ratings
Risk Ratings Risk Ratings for Period – low end of moderate risk exposure 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Strategic Credit Interest Rate Liquidity Operational Compliance Reputational Legal Total Avg
Slide 55: National Recognition
National Recognition • Ranked in American Banker magazine’s list of Top 200 community banks in the United States • Eight consecutive years
Slide 56: Hank Gambocurta Service Award
Hank Gambocurta Service Award
Slide 57: Congratulations Directors! Thank you, Alan Metzler and Delmont Sunderland!
Congratulations Directors! Thank you, Alan Metzler and Delmont Sunderland!
Slide 58: Doing what matters. KISH 2014 Annual Shareholder Meeting
Doing what matters. KISH 2014 Annual expect more Shareholder Meeting