Kish Bancorp, Inc. · OTC:KISB
Kish Bancorp — Shareholder Meeting (May 2024)
41 slides from Kish Bancorp's shareholder meeting presentation, May 10, 2024
Slide 1: 2024 Annual Shareholders Meeting
2024 Annual Shareholders Meeting
Slide 2: Welcome & Call to Order
Welcome & Call to Order 3
Slide 3: Our Mission
Our Mission To achieve sustained success through an unwavering focus on fulfilling our clients’ financial needs. 4
Slide 4: Our Vision
Our Vision Kish will be known for providing legendary service. 5
Slide 5: Our "Why"
Our “Why” “We believe that we can make the lives of those around us—our employees, our clients, and our communities—better.” 6
Slide 6: Class 2 Directors
Class 2 Directors CLASS 2 DIRECTORS WHOSE TERMS EXPIRE IN 2024 Director of Name Principal Occupation Corporation/Bank Since William P. Hayes Executive Chairman, 1987/1984 Kish Bank and Kish Bancorp, Inc. Angela D. Thompson Founder and CEO, Thompson’s Candle Co. 2023/2023 Frances V. Vaughn Chief Huma
Slide 7: Class 3 and 1 Directors
Class 3 and 1 Directors Class of 2025 Class of 2026 • Michael K. Halloran • Eric J. Barron • Kathleen L. Rhine • William L. Dancy • George V. Woskob • Gregory T. Hayes • Paul G. Howes • Paul H. Silvis 8
Slide 8: Remembrance
Remembrance Raymond J. Byler May 31, 1935 – October 27, 2023
Slide 9: 2023: Watershed to Bellwether!
2023: Watershed to Bellwether! 10
Slide 10: Banking Industry Backdrop for 2023
Banking Industry Backdrop for 2023 11
Slide 11: Banking Industry Backdrop for 2023
Banking Industry Backdrop for 2023 • Sharp increase in rates – Drove unrealized losses on bond portfolios – Increased the cost of deposits • 2023 Bank Failures put further pressure on Community Bank stocks • Liquidity of bank deposits declined across the industry • Mortgage rates at the highest leve
Slide 12: Team, Client, Capital, Quality, Community
Build the Best Team Grow the Customer Base Build the best team in community Improve the Kish client experience by banking to passionately deliver building human relationships through legendary service. the delivery of the best solutions. Team Client Attract and Reward Capital Expand markets, clients
Slide 13: Executing our Growth Strategy in 2023
Executing our Growth Strategy in 2023 • High quality loan growth as the core engine • Strong balance sheet management • Core deposits to fund loans • Capital to support growth • Noninterest income revenue to diversify income 14
Slide 14: $1.5 Billion in Total Assets
$1.5 Billion in Total Assets 15
Slide 15: Accelerating Growth Over Time
Accelerating Growth Over Time Data as of December 31, 2023 16
Slide 16: Growth in Loans
Growth in Loans Data as of December 31, 2023 17
Slide 17: Loan Mix
Loan Mix Gross Loans: $1,233,530 Data as of December 31, 2023 18
Slide 18: Expanding our Risk Management
Expanding our Risk Management Concentration Monitoring • Loans by Location • Loans by Risk Rating • Loans by Maturity date • Loans Concentrations by Category • Concentration as % of Capital • Construction Loan oversight 19
Slide 19: Growth & Asset Quality
Growth & Asset Quality Data as of December 31, 2023 20
Slide 20: Deposit Market Share
Deposit Market Share • Mifflin – 7 locations Deposit Market Share as of June 30, 2023 – Ranked #1 with 46.05% of deposit market share • Huntingdon Market Deposits in Total Market County Share Market Market – 3 locations Share (%) Rank ($000) ($000) – Ranked #2 with 26.43% of deposit market share Mif
Slide 21: New Pleasant Valley Boulevard Location
New Pleasant Valley Boulevard Location 22
Slide 22: Accelerating Growth Over Time
Accelerating Growth Over Time Data as of December 31, 2023 23
Slide 23: Deposit Mix
Deposit Mix Total Deposits: $1,179,075 Data as of December 31, 2023 24
Slide 24: Impact on NIM
Impact on NIM Data as of December 31, 2023 25
Slide 25: The Core Engine
The Core Engine Data as of December 31, 2023 26
Slide 26: Bank & Non-Bank Fee Income
Bank & Non-Bank Fee Income Bank & Non-Bank Business Revenues • Bank Service Fees – 2023 revenue up 8.69% year over year • Wealth Management – 2023 revenue up 2.42% year over year • Kish Insurance recurring revenue – 2023 revenue up 7.43% year over year • Kish Travel – 2023 revenue up 19.40% year ove
Slide 27: Net Income Growth
Net Income Growth • 5% growth in 2023 versus 7.1% decline across community banks according to the FDIC 23% • 17.8% average annual growth over 5 years 15% • Doubled Net Income in 4 years Data as of December 31, 2022 28
Slide 28: Shareholder Performance
Shareholder Performance • Strong ROE above Peer of 13.02% • EPS of $5.13 in 2023, compared to $4.90 in 2022 • Market Valuation of 104.1% of TBV as of EOY 2023 • Consistent dividend expansion with current yield of ~4.50%1 • Share price of $32.00 in 2023 • Attractive P/E of under 6.5x 1 Dividend yield
Slide 29: Capital to Support Growth
Capital to Support Growth 100,000 + 92,765 90,000 + 80,000 + 77,099 71,971 69,962 70,000 + 64,352 59,728 60,000 + 56,338 53,593 51,280 48,853 50,000 + 40,000 - + - + - + - + - 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 30: 2024 and Beyond
2024 and Beyond 31
Slide 31: Current Headwinds
Current Headwinds • Higher for longer interest rates – Continues to elevate the cost of deposits • Potential for Bank Failures and uncertainty continues to put pressure on Community Bank stocks • Liquidity of bank deposits continue to decline • Mortgage rates at the highest levels in 2 decades and h
Slide 32: Mission, Vision and Strategic Pillars
MISSION VISION To achieve sustained success through an Kish will be known for providing legendary unwavering focus on fulfilling our clients’ service. financial needs. “We believe that we can make the lives of those around us - our employees, our clients, and our communities - better.” Build the Bes
Slide 33: ATM + Live Banker
ATM + Live Banker Welcome to Kish’s ATM + Live Banker EKISH
Slide 34: Mission, Vision and Strategic Pillars
MISSION VISION To achieve sustained success through an Kish will be known for providing legendary unwavering focus on fulfilling our clients’ service. financial needs. “We believe that we can make the lives of those around us - our employees, our clients, and our communities - better.” Build the Bes
Slide 35: Rendering of the new Mifflintown Location
Rendering of the new Mifflintown Location 36
Slide 36: Mission, Vision and Strategic Pillars
MISSION VISION To achieve sustained success through an Kish will be known for providing legendary unwavering focus on fulfilling our clients’ service. financial needs. “We believe that we can make the lives of those around us - our employees, our clients, and our communities - better.” Build the Bes
Slide 37: Questions
Questions 39
Slide 38: Voting Results
Voting Results 40
Slide 39: Congratulations, Directors!
Congratulations, Directors! 41
Slide 40: Thank you, Bill Lake, for your service!
Thank you, Bill Lake, for your service!
Slide 41: 2024 Annual Shareholders Meeting
2024 Annual Shareholders Meeting