Kish Bancorp, Inc. · OTC:KISB
Kish Bancorp — Shareholder Meeting (May 2011)
47 slides from Kish Bancorp's shareholder meeting presentation, May 16, 2011
Slide 1: 2010 Annual Shareholder Meeting
2010 Annual Shareholder Meeting
Slide 2: Board Nominees
B d Nominees Board N i Al Metzler Alan M t l Delmont Sunderland William Dancy
Slide 3: Additions to the Senior Management Team
Additi Additions to t the th Senior S i Management M t Team T William Yaudes Michael Lehmer John Arrington Carol Herrmann
Slide 4: Regulatory Issue
R Regulatory l t Issue I • Written Agreement • Sign of the Times • Consistent with Strategic Priorities • 95% Complete
Slide 5: Regulatory Issue
R Regulatory l t Issue I • Positive Outlook • Strong Earnings • Well‐Capitalized • Low Delinquencies • Strong Reserves
Slide 6: Regulatory Issue
R Regulatory l t Issue I Service still Top Priority • Lending L di • Deposits Focused on Shareholder Performance
Slide 7: 2010 Highlights
2010 Hi Highlights hli ht • Growth in Net Income • Capital Management • Enterprise‐Wide p Risk Management g • Balance Sheet Strengthened • Deposit Growth • Lower Funding Costs, Expansion of Net Interest Income • Record Year for Mortgage Business • Growth in Non‐Banking Revenues • Market Share Expans
Slide 8: Financial Highlights
Building fot the Future Financial Highlights expect more
Slide 9: Net Income
N t Income Net I ($ in thousands) $4,500 $4,000 $3,848 $3,934 $3,938 $3,556 $3,500 $3,213 $ $3,003 $3,000 $2,500 $2,000 $1,700 $1,500 $1,000 $838 $500 $162 $85 $0 1975 1980 1990 1995 2000 2006 2007 2008 2009 2010
Slide 10: Earnings Per Share
E Earnings i P Per Share Sh $8.00 $7.37 $7.47 $7.16 $6.99 $6.94 $7.00 $6.69 $6.72 $6.52 $6.08 $6 00 $6.00 $5 70 $5.70 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: SNL Financial
Slide 11: Total Gross Loans
T t l Gross Total G Loans L ($ in millions) $400 $374 $374 $350 $337 $309 $300 $291 $270 $250 $231 $202 $197 $200 $192 $150 $100 $50 $0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 KISB: 6.5% CAGR from 2001‐2010 Peers¹: 6.2% CAGR from 2001‐2010 ¹ Includes public banks in PA with assets between
Slide 12: Total Deposits
T t l Deposits Total D it ($ in millions) $500 $446 $450 $408 $400 $353 $350 $332 $319 $301 $300 $282 $249 $250 $228 $214 $200 $150 $100 $50 $0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 KISB: 8.7% CAGR from 2001‐2010 Peers¹: 6.5% CAGR from 2001‐2010 ¹ Includes public banks in PA with assets
Slide 13: Total Assets
T t l Assets Total A t ($ in millions) $600 $557 $527 $500 $476 $454 $412 $413 $396 $400 $357 $320 $290 $300 $200 $100 $0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 KISB: 6.7% CAGR from 2001‐2010 Peers¹: 4.8% CAGR from 2001‐2010 ¹ Includes public banks in PA with assets between $500mm and $1B
Slide 14: Net Interest Income
N t Interest Net I t t IIncome ($ in thousands) $18,000 $16,988 $16,000 $15,525 $14,138 $14,000 $11 830 $11,830 $12,107 $12,000 $10,978 $10,321 $10,536 $9,947 $10,126 $10,000 $8,000 $6,000 $4,000 $2,000 $0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Slide 15: Net Interest Margin
N t Interest Net I t tMMargin i KISB Peers¹ 5 00% 5.00% 4.22% 4.00% 4.00% 3.64% 3.58% 3.54% 3.35% 3 37% 3.37% 3 47% 3.47% 3.29% 3.30% 3.00% 2.00% 1.00% 0.00% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ¹ Includes public banks in PA with assets between $500mm and $1B Source: SNL Financial
Slide 16: Noninterest Income
N i t Noninterest t Income I 1 ($ in thousands) $6,000 , $5,385 $5,000 $4,717 $4,482 $4,222 $4,180 $4,274 $ $3,963 $4 030 $4,030 $4,000 $3,703 $3,000 $2,490 $2,000 $1 000 $1,000 $0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1 Excluding Securities Gains (Losses)
Slide 17: Noninterest Income/Operating Revenue
N i t Noninterest t Income/Operating I /O ti Revenue R (%) KISB Peers¹ 45% 40% 39% 39% 38% 35% 30% 26% 24% 23% 24% 25% 24% 22% 20% 20% 15% 10% 5% 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ¹ Includes public banks in PA with assets between $500mm and $1B Source: SNL Financial
Slide 18: Noninterest Expense
N i t Noninterest t Expense E ($ in thousands) $20,000 , $18,000 $17,520 $16,000 $14,900 $14 000 $14,000 $12,819 $12,000 $11,417 $11,357 $11,542 $10,749 $10,290 $10,000 $8,744 $7 777 $7,777 $8,000 $6,000 $4,000 $2,000 $0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Slide 19: Noninterest Expense/Average Assets
N i t Noninterest t Expense/Average E /A Assets A t (%) KISB Peers¹ 4 50% 4.50% 4.00% 3.73% 3.58% 3.52% 3.50% 3.18% 2.92% 3.00% 2.82% 2.85% 2.81% 2.75% 2.75% 2.50% 2 00% 2.00% 1.50% 1.00% 0.50% 0.00% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ¹ Includes public banks in PA with assets between
Slide 20: Asset Quality and Reserves
A Assett Quality Q lit and d Reserves R • Nonperforming assets decline • Regulatory environment • Loan loss provision expense of $1.85mm compared to net charge‐offs charge offs of $1.0mm • Reserve for possible loan losses up $848 thousand • Loan Loss Reserve/Total Loans at 1.67%
Slide 21: Nonperforming Assets/Total Assets
N Nonperforming f i A Assets/Total t /T t l A Assets t KISB Peers¹ 2 00% 2.00% 1.75% 1.67% 1.50% 1.45% 1.30% 1.26% 1.25% 1.00% 0.75% 0.71% 0.53% 0.55% 0.50% 0.43% 0.32% 0 29% 0.29% 0.25% 0.00% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ¹ Includes public banks in PA with assets between $500mm
Slide 22: Nonperforming Assets/Total Assets
N Nonperforming f i A Assets/Total t /T t l A Assets t 5 00% 5.00% KISB PA Peers¹ National Peers¹ 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.76% 1.70% 1.67% 1.55% 1.45% 1.50% 1.42% 1.50% 1.00% 0.38% 0.40% 0.43% 0.38% 0.51% 0.50% 0.40% 0.00% 03/08 Q 06/08 Q 09/08 Q 12/08 Q 03/09 Q 06/09 Q 09/09 Q 12/09 Q
Slide 23: Reserves/Gross Loans
R Reserves/Gross /G Loans L KISB Peers¹ 2 00% 2.00% 1.80% 1.67% 1.60% 1.44% 1.40% 1.31% 1.24% 1.20% 1.00% 1.01% 1.00% 1.02% 0.97% 0.98% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ¹ Includes public banks in PA with assets between $400mm and $600mm Source: SN
Slide 24: Reserves/Gross Loans
R Reserves/Gross /G Loans L 2 50% 2.50% KISB PA Peers¹ National Peers¹ 2.00% 1.76% 1.67% 1.67% 1.51% 1.61% 1.50% 1.42% 1.44% 0.97% 0.99% 0.98% 0.98% 1 00% 1.00% 0.97% 1.00% 0.50% 0.00% 03/08 Q 06/08 Q 09/08 Q 12/08 Q 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 ¹ Includes
Slide 25: Reserves/Nonperforming Assets
R Reserves/Nonperforming /N f i Assets A t KISB Peers¹ 400% 300% 202% 205% 200% 162% 133% 120% 102% 100% 78% 62% 61% 52% 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ¹ Includes public banks in PA with assets between $500mm and $1B Source: SNL Financial
Slide 26: Net Charge-Offs/Average Loans
N t Charge‐ Net Charge Ch ‐Offs/Average Off /A Loans L KISB Peers¹ 0.70% 0.60% 0.50% 0.45% 0.40% 0.35% 0.30% 0.26% 0.24% 0.20% 0.18% 0.10% 0.07% 0.05% 0.03% 0.01% 0.00% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ¹ Includes public banks in PA with assets between $500mm and $1B Source: SNL Fina
Slide 27: Net Charge-Offs/Average Loans
N t Charge‐ Net Charge Ch ‐Offs/Average Off /A Loans L KISB PA Peers¹ National Peers¹ 2.25% 1.75% 1.25% 0.74% 0.75% 0.25% 0.20% 0.23% 0.08% 0 09% 0.09% 0.02% 0.02% 0.01% 0.00% 0.00% -0.01% -0.01% -0.01% -0.25% 03/08 Q 06/08 Q 09/08 Q 12/08 Q 03/09 Q 06/09 Q 09/09 Q 12/09 Q 03/10 Q 06/10 Q 09/10 Q 12
Slide 28: Loans 30-89 Days Past Due
Loans L 30‐89 D 30‐ Days P Pastt D Due KISB UBPR 2 00% 2.00% 1.75% 1.50% 1.25% 1.13% 1.00% 0.75% 0.52% 0.50% 0.34% 0 28% 0.28% 0.25% 0.17% 0.20% 0.00% 2006 2007 2008 2009 2010 0311 Q ¹ Includes all public banks with assets between $300mm and $1B Source: FFIEC Uniform Bank Performance Report
Slide 29: Shareholder Performance
Building fot the Future Shareholder Performance expect more
Slide 30: Return on Average Equity
R Return t on Average A Equity E it 20 0% 20.0% KISB PA Peers¹ National Peers¹ 18.0% 17.0% 16.4% 16.5% 16.0% 15.3% 14.0% 13.3% 13 0% 13.0% 13.3% 12.8% 12.0% 9.7% 10.3% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ¹ Includes public banks in PA and Nationally
Slide 31: Dividends Per Share
Di id d Per Dividends P Share Sh ($) $3.50 $3.24 $3.24 $3.24 $3.03 $3.00 $2.75 $2.47 $2.50 $2.24 $2.00 $1.76 $1 57 $1.57 $1.44 $1.50 $1.00 $0.50 $0.00 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Slide 32: Dividend Yield
Dividend Di id d Yield Yi ld 6 00% 6.00% 5.89% KISB PA Peers¹ National Peers¹ 5.31% 5.00% 4.75% 4.24% 4.00% 3.34% 3.00% 2.81% 2.56% 2.41% 2.12% 2.00% 1.80% 1 00% 1.00% 0.00% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ¹ Includes public banks in PA and Nationally with assets between $500mm and
Slide 33: Price/LTM EPS
Price/LTM P i /LTM EPS KISB Peers¹ 25 0 25.0 20.0 16.5x 15.0 13.7x 14.2x 13.0x 13.0x 12.8x 11.3x 10.4x 10.0 9.1x 7.4x 5.0 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ¹ Includes public banks in PA with assets between $500mm and $1B Source: SNL Financial
Slide 34: Price/Book Value
P i /B k V Price/Book Value l KISB Peers¹ 300% 248% 250% 204% 200% 197% 185% 189% 156% 150% 132% 107% 100% 93% 92% 50% 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ¹ Includes public banks in PA with assets between $500mm and $1B Source: SNL Financial
Slide 35: Market Presence: Mifflin County
M k tP Market Presence Mifflin County ‐ #1 Ranking 40.0% 35.0% 30 0% 30.0% Kish Bank 25.0% Juniata Valley Bank 20.0% Omega Bank/FNB Mifflin County Savings Bank 15.0% Northwest Savings Bank 10.0% Citizens Bank 5.0% 0.0% 2006 2007 2008 2009 2010 Source: www.FDIC.gov, Data as of June 30, 2010
Slide 36: Market Presence: Huntingdon County
M k tP Market Presence Huntingdon County ‐ #3 Ranking 40.0% 35.0% 30 0% 30.0% Community State Bank of 25.0% Orbisonia Omega Bank/FNB 20.0% Ki h Bank Kish B k 15.0% Clearfield Bank & Trust 10.0% Northwest Savings Bank 5.0% Juniata Valley Bank 0.0% 2006 2007 2008 2009 2010 Source: www.FDIC.gov, Data a
Slide 37: Market Presence: Centre County
M k tP Market Presence Centre County ‐ #8 Ranking 25.0% Citizens Bank Omega Bank/FNB 20.0% Nittany Bank PNC 15.0% M&T Northwest Savings Bank 10.0% CNB Bank Jersey Shore Bank 5.0% S Sovereign i Bank B k Reliance Bank 0.0% Kish Bank 2006 2007 2008 2009 2010 Source: www.FDIC.gov, Data as of June 30, 20
Slide 38: The Road Ahead
Building fot the Future The Road Ahead expect more
Slide 39: Principal Goals for 2011
Principal P i i l Goals G l for f 2011 • Focus on asset quality/regulatory agreement • Continue development of enterprise‐wide risk management system • Utilize technology to manage risk and improve productivity • A Align ig organization o ga i a io too eenable a e better e e execution e ecu io • Exp
Slide 40: Principal Goals for 2011
Principal P i i l Goals G l for f 2011 • Kish brand enhancement • Capital planning/shareholder succession • Implement private banking strategy • Enhance non‐bank revenue growth • Grow market share
Slide 41: The Kish Experience
Th The Kish Ki h Experience E i Vision Statement ¾ “To be THE standard by which all financial services companies are judged” Mission Statement ¾ “To create superior, p long‐term g shareholder returns through an unwavering focus on fulfilling clients’ financial needs”
Slide 42: Congratulations Dick Calkins
Congratulations Dick Calkins
Slide 43: Building for the Future
Building fot the Future 6£We only had a thousand dollars to start with, but Kish Bank took the time to listen and understand our business, our vision of a wildly successful future. 9 J Joe & Mary Ann McDonald McDonald Wildlife Photography expect more
Slide 44: Building for the Future
Building fot the Future \ 46 With Kish Insurance protecting so much of what’s important to me, I have the peace of mind to focus on my business...and on checking things off my ‘bucket list!’ 99 Pam Prosser Owner, Seven Points Marina expect more
Slide 45: Building for the Future
Building fot the Future =a 46 With a sound financial | strategy from Kish Financial Solutions, it’s easier for me to support community causes that I care about. 99 Pam Grugan expect more
Slide 46: Building for the Future
ISH Building fot the Future 66 Kish Bank helps us toast the success of our winery. But Kish Travel makes it easier when we'd rather raise glasses during a romantic dinner for two, on board a cruise ship. 99 Scott & Mary Ann Bubb Seven Mountains Wine Cellars expect more
Slide 47: 2011 Annual Shareholders Meeting
KISH 2011 Annual Shareholders Meeting Values Worth Preserving