Slide 1: 2012 Annual Shareholder Meeting
2012 ANNUAL SHAREHOLDER MEETING MAKING A DIFFERENCE, ONE CUSTOMER AT A TIME EWISH
Slide 2: Board Nominees
Board Nominees • William Lake • William Hayes
Slide 3: Introductions
Introductions • Spyros Degleris • Sangeeta Kishore
Slide 4: 2011 Highlights
2011 Highlights • Regulatory Agreement • Enterprise Risk Management • Sustained Financial Performance • Strengthened Balance Sheet • Building the Team • Market Share • Shareholder Performance
Slide 5: Regulatory Agreement
Regulatory Agreement
Slide 6: Enterprise Risk Management
Enterprise Risk Management
Slide 7: Risk Categories
Risk Categories • Strategic • Credit • Interest Rate • Liquidity • Operational • Compliance • Reputation • Legal
Slide 8: Risk Ratings
Risk Ratings Strategic Credit Interest Rate Liquidity Operational Compliance Reputation Legal TOTAL AVERAGE
Slide 9: Financial Highlights
Financial Highlights
Slide 10: Net Income
Net Income ($ in thousands) $4,500 $4,001 $4,074 $3,934 $4,000 $3,811 $3,848 $3,938 $3,779 $3,631 $3,556 $3,500 $3,213 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 11: Earnings Per Share
Earnings Per Share $8.00 $7.37 $7.47 $7.16 $6.99 $6.94 $7.00 $6.69 $6.72 $6.74 $6.52 $6.08 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 12: Balance Sheet Trends
Balance Sheet Trends ($ in millions) $600 Assets Deposits Loans $560 $557 $527 $500 $476 $454 $455 $446 $412 $413 $408 $396 $400 $357 $353 $332 $373 $374 $369 $320 $319 $301 $337 $300 $282 $309 $249 $291 $228 $270 $231 $200 $192 $197 $100 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 13: Net Interest Income
Net Interest Income ($ in thousands) $20,000 $18,000 $17,243 $16,988 $16,000 $15,525 $14,138 $14,000 $12,107 $11,830 $12,000 $10,978 $10,321 $10,536 $10,126 $10,000 $8,000 $6,000 $4,000 $2,000 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 14: Net Interest Margin
Net Interest Margin KISB PA Peers¹ National Peers¹ 5.00% 4.00% 4.00% 3.57% 3.47% 3.54% 3.64% 3.58% 3.35% 3.37% 3.29% 3.30% 3.00% 2.00% 1.00% 0.00% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 ¹ Includes Bank Operating Companies in PA and Nationally with $500mm to $1B in Assets Source: SNL Finan
Slide 15: Noninterest Income
Noninterest Income ($ in thousands) $9,000 Bank Svc Fees Insurance KFS Sec Gains Travel $7,982 $8,000 $7,000 $6,408 $6,000 $5,307 $5,305 $5,000 $4,618 $4,439 $3,798 $4,000 $3,000 $2,000 $1,000 $0 2005 2006 2007 2008 2009 2010 2011
Slide 16: Total Revenue Mix
Total Revenue Mix ($ in thousands) $30,000 Net Int Inc Bank Svc Fees Insurance Sec Gains KFS Travel $25,225 $25,000 $23,396 $20,830 $20,000 $17,936 $16,285 $16,448 $16,546 $15,000 $10,000 $5,000 $0 2005 2006 2007 2008 2009 2010 2011
Slide 17: Noninterest Income/Operating Revenue (%)
Noninterest Income/Operating Revenue (%) KISB PA Peers¹ National Peers¹ 45% 40% 39% 39% 35% 30% 29% 28% 26% 26% 27% 24% 25% 22% 23% 20% 15% 10% 5% 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 ¹ Includes Bank Operating Companies in PA and Nationally with $500mm to $1B in Assets Source: SNL Fi
Slide 18: Noninterest Expense
Noninterest Expense ($ in thousands) $25,000 $20,355 $20,000 $17,520 $14,900 $15,000 $12,819 $11,417 $11,357 $11,542 $10,749 $10,290 $10,000 $8,744 $5,000 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 19: Noninterest Expense/Average Assets (%)
Noninterest Expense/Average Assets (%) KISB PA Peers¹ National Peers¹ 4.50% 4.00% 3.73% 3.66% 3.58% 3.50% 3.08% 3.00% 2.85% 2.92% 2.86% 2.75% 2.79% 2.72% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 ¹ Includes Bank Operating Companies in PA and Nationally wit
Slide 20: Strengthened Balance Sheet and Asset Quality
Strengthened Balance Sheet and Asset Quality
Slide 21: 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% 1.50% 1.26% 1.30% 1.00% 0.80% 0.84% 0.71% 0.55% 0.33% 0.50% 0.43% 0.29% 0.00% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 ¹ Includes Bank Operating Companies in PA and Nationally with $500mm to
Slide 22: Criticized and Classified Loans to Capital
Criticized and Classified Loans to Capital
Slide 23: Reserves/Gross Loans
Reserves/Gross Loans KISB PA Peers¹ National Peers¹ 2.25% 2.00% 1.90% 1.75% 1.67% 1.50% 1.44% 1.31% 1.25% 1.24% 1.01% 1.00% 1.02% 0.97% 0.98% 1.00% 0.75% 0.50% 0.25% 0.00% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 ¹ Includes Bank Operating Companies in PA and Nationally with $500mm to $1B in
Slide 24: Reserves/Nonperforming Assets
Reserves/Nonperforming Assets KISB PA Peers¹ National Peers¹ 400% 300% 202% 202% 200% 162% 150% 140% 120% 102% 100% 61% 62% 52% 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 ¹ Includes Bank Operating Companies in PA and Nationally with $500mm to $1B in Assets Source: SNL Financial
Slide 25: 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% 0.26% 0.25% 0.18% 0.05% 0.07% 0.01% 0.03% 0.00% 0.00% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 ¹ Includes Bank Operating Companies in PA and Nationally with $500mm to $1B in Assets Source:
Slide 26: Net Charge-Offs/Average Loans
Net Charge-Offs/Average Loans KISB PA Peers¹ National Peers¹ 1.75% 1.25% 0.75% 0.74% 0.23% 0.25% 0.20% 0.09% 0.08% 0.01% 0.00% 0.02% 0.00% 0.00% 0.02% 0.00% -0.01% -0.25% 03/09 Q 06/09 Q 09/09 Q 12/09 Q 03/10 Q 06/10 Q 09/10 Q 12/10 Q 03/11 Q 06/11 Q 09/11 Q 12/11 Q 03/12 Q ¹ Includes Bank Operating
Slide 27: Loans 30-89 Days Past Due
Loans 30-89 Days Past Due KISB Peers¹ 2.00% 1.75% 1.50% 1.28% 1.25% 1.13% 1.00% 0.75% 0.73% 0.63% 0.54% 0.52% 0.50% 0.50% 0.34% 0.28% 0.25% 0.17% 0.11% 0.00% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 0312 Q ¹ Includes all public banks with assets between $300mm to $1B Source: FFIEC Uniform B
Slide 28: Capital
Capital
Slide 29: Effective Capital Management
Effective Capital Management • Subordinated Debt – Raised total of $4.75mm between 2009 – 2011 – Qualifies as Tier 2 Capital • Dividend Reinvestment Plan – Program offered beginning in 2nd Quarter 2011 – Provides existing shareholders a simple, cost-effective method for purchasing shares of Kish com
Slide 30: Consolidated Capital Ratios
Consolidated Capital Ratios Leverage Ratio Tier 1 Capital Ratio 12.00% 14.00% KISB Well Capitalized¹ KISB Well Capitalized¹ 10.00% 12.00% 11.4% 11.0% 8.6% 8.4% 8.3% 10.3% 10.3% 10.2% 8.3% 8.2% 8.2% 9.8% 9.4% 7.7% 10.00% 9.5% 9.5% 9.3% 8.00% 7.6% 7.4% 7.2% 8.00% 6.00% 6.00% 4.00% 4.00% 2.00% 2.00% 0.
Slide 31: Building the Team
Building the Team
Slide 32: Additions to the Senior Management Team
Additions to the Senior Management Team • Sangeeta Kishore • John Arrington • Carol Herrmann • Lenders • Appointments
Slide 33: Market Share
Market Share
Slide 34: Market Presence: Mifflin County
Market Presence Mifflin County - #1 Ranking 40.0% 35.0% 30.0% Kish Bank 25.0% Juniata Valley Bank 20.0% Omega Bank/FNB Mifflin County Savings Bank 15.0% Northwest Savings Bank Citizens Bank 10.0% 5.0% 0.0% 2006 2007 2008 2009 2010 2011 Source: www.FDIC.gov, Data as of June 30, 2011
Slide 35: Market Presence: Huntingdon County
Market Presence Huntingdon County - #3 Ranking 40.0% 35.0% 30.0% Community State Bank of 25.0% Orbisonia Omega Bank/FNB 20.0% Kish Bank 15.0% Clearfield Bank & Trust 10.0% Northwest Savings Bank 5.0% Juniata Valley Bank 0.0% 2006 2007 2008 2009 2010 2011 Source: www.FDIC.gov, Data as of June 30, 201
Slide 36: Market Presence: Centre County
Market Presence Centre County - #9 Ranking 25.0% PNC Omega Bank/FNB 20.0% Nittany Bank Citizens Bank 15.0% M&T Northwest Savings Bank Jersey Shore Bank 10.0% CNB Bank Kish Bank 5.0% Graystone Tower Sovereign Bank 0.0% 2006 2007 2008 2009 2010 2011 Source: www.FDIC.gov, Data as of June 30, 2011
Slide 37: Shareholder Performance
Shareholder Performance
Slide 38: Return on Average Equity
Return on Average Equity 20.0% KISB PA Peers¹ National Peers¹ 18.0% 17.0% 16.5% 16.0% 15.3% 14.0% 13.3% 13.3% 13.0% 12.8% 12.0% 10.3% 9.7% 9.8% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 ¹ Includes Bank Operating Companies in PA and Nationally with $500mm
Slide 39: Dividends Per Share
Dividends Per Share $3.50 $3.24 $3.24 $3.24 $3.24 $3.03 $3.00 $2.75 $2.47 $2.50 $2.24 $2.00 $1.76 $1.44 $1.50 $1.00 $0.50 $0.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 40: Dividend Yield on Common Stock
Dividend Yield on Common Stock 7.00% KISB PA Peers¹ National Peers¹ 5.89% 6.00% 5.59% 5.31% 4.75% 5.00% 4.24% 4.00% 3.34% 3.00% 2.81% 2.56% 2.41% 2.12% 2.00% 1.00% 0.00% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 ¹ Includes Bank Operating Companies in PA and Nationally with $500mm to $1B in A
Slide 41: Price/Book Value
Price/Book Value 300% KISB PA Peers¹ National Peers¹ 250% 204% 200% 197% 189% 185% 164% 150% 133% 107% 93% 100% 92% 80% 50% 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 ¹ Includes Bank Operating Companies in PA and Nationally with $500mm to $1B in Assets Source: SNL Financial
Slide 42: Market Valuation
Market Valuation Market Price as a % of Tangible Book Value (Dec. 31, 2011) ¹ Includes Bank Operating Companies in PA with $500mm to $1B in Assets Source: SNL Financial
Slide 43: Stock Performance vs. Peer Banks
Stock Performance vs. Peer Banks Market Price % Change Dec. 2008 – Dec. 2011 ¹ Includes Bank Operating Companies in PA with $500mm to $1B in Assets Source: SNL Financial
Slide 44: Financial Summary
Financial Summary
Slide 45: Financial Summary
Financial Summary • Consistent growth in the face of sustained headwinds • Positive core operating performance • Diversified revenue mix • Elevated short-term expenses related to economic and regulatory environment • Battle-tested balance sheet and team • The kind of company you want to own
Slide 46: Strategic Opportunities
Strategic Opportunities
Slide 47: Strategic Focus
Strategic Focus • Cross the Finish Line – Manage risk profile – Anticipate increased regulatory capital requirements • Maintain a Strong Balance Sheet – Focus on asset quality metrics – Sustained profitability and performance • Grow Existing Business Lines – Expand the bank franchise in designated g
Slide 48: National Recognition
National Recognition • Ranked in American Banker magazine’s list of Top 200 community banks in the United States • Four consecutive years
Slide 49: Kish Bancorp, Inc.
Kish Bancorp, Inc. NASDAQ Ticker: KISB www.KishBank.com