Kish Bancorp, Inc. · OTC:KISB
Kish Bancorp — Shareholder Meeting (May 2015)
59 slides from Kish Bancorp's shareholder meeting presentation, May 12, 2015
Slide 1: 2015 Annual Shareholder Meeting
KISH 2015 ANNUAL 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 • Edward A. Friedman • William P. Hayes • William S. Lake • Paul H. Silvis
Slide 5: 2014 Highlights
2014 Highlights • Record net income and core net interest income • New highs for loans and deposits outstanding • Growth in the depth and breadth of the Kish team • Continued strength in Kish Bank’s credit quality measures • Robust results by the wealth management, insurance, and travel divisions •
Slide 6: 2014 Financial Highlights
2014 Financial Highlights
Slide 7: Net Income ($ in thousands)
Net Income ($ in thousands) $5,000 $4,500 $4,359 $4,217 $3,934 $3,938 $4,000 $3,779 $3,848 $3,556 $3,631 $3,630 $3,500 $3,213 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Calculation: Net Interest Income – Provision for Loan Losses + Non Interest Incom
Slide 8: Earnings Per Share
Earnings Per Share $4.00 $3.74 $3.69 $3.63 $3.54 $3.47 $3.50 $3.36 $3.37 $3.35 $3.04 $3.05 $3.00 $2.50 $2.00 $1.50 $1.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Slide 9: Net Interest Income ($ in thousands)
Net Interest Income ($ in thousands) $20,000 $18,630 $17,243 $17,537 $18,000 $16,988 $16,816 $15,525 $16,000 $14,138 $14,000 $11,830 $12,107 $12,000 $10,978 $10,000 $8,000 $6,000 $4,000 $2,000 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Definition: The amount of money the bank receives from
Slide 10: Net Interest Margin
Net Interest Margin KISB PA Peers¹ National Peers¹ 5.00% 4.00% 3.52% 3.54% 3.26% 3.28% 3.35% 3.25% 3.23% 3.19% 3.14% 3.18% 3.08% 3.00% 2.00% 1.00% 0.00% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ¹ Includes Bank Operating Companies in PA and Nationally with $500mm to $1B in Assets Source
Slide 11: Noninterest Income ($ in thousands)
Noninterest Income ($ in thousands) $8,000 Deposit Svc Fees Mortgage Origination Fees Insurance KFS Sec Gains Travel $6,979 $7,000 $6,240 $6,460 $6,492 $5,923 $6,000 $5,305 $5,000 $4,439 $3,798 $4,000 $3,000 $2,000 $1,000 $0 2007 2008 2009 2010 2011 2012 2013 2014
Slide 12: Noninterest Income ($ in thousands)
Noninterest Income ($ in thousands) $8,000 $7,141 $7,000 $6,181 $6,100 $5,896 $6,000 $5,385 $4,784 $5,000 $4,482 $4,180 $4,274 $4,030 $4,000 $3,000 $2,000 $1,000 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Definition: Income derived from fee-based services. Examples: Monthly service charges
Slide 13: Total Revenue Mix ($ in thousands)
Total Revenue Mix ($ in thousands) $30,000 Net Int Inc Bank Svc Fees Insurance Sec Gains KFS Travel $25,053 $25,000 $23,795 $23,997 $23,228 $23,166 $20,830 $20,000 $17,936 $16,546 $15,000 $10,000 $5,000 $0 2007 2008 2009 2010 2011 2012 2013 2014
Slide 14: Noninterest Income/Operating Revenue (%)
Noninterest Income/ Operating Revenue (%) KISB PA Peers¹ National Peers¹ 45% 40% 39% 35% 30% 30% 28% 26% 27% 27% 26% 24% 24% 25% 23% 22% 20% 15% 10% 5% 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ¹ Includes Bank Operating Companies in PA and Nationally with $500mm to $1B in Assets Sour
Slide 15: Noninterest Expense ($ in thousands)
Noninterest Expense ($ in thousands) $25,000 $20,354 $19,900 $19,356 $19,605 $20,000 $17,519 $14,900 $15,000 $12,819 $11,417 $11,357 $11,542 $10,000 $5,000 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Definition: Operating expenses of the bank not directly associated with the payment of inte
Slide 16: Noninterest Expense/Average Assets (%)
Noninterest Expense/ Average Assets (%) 4.50% KISB PA Peers¹ National Peers¹ 4.00% 3.74% 3.58% 3.50% 3.44% 3.27% 3.08% 3.04% 3.00% 2.86% 2.92% 2.79% 2.72% 2.75% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ¹ Includes Bank Operating Companies in PA and Na
Slide 17: Balance Sheet Trends ($ in millions)
Balance Sheet Trends ($ in millions) $700 Assets Deposits Loans $660 $630 $600 $557 $560 $558 $527 $509 $494 $500 $476 $454 $455 $460 $446 $412 $413 $408 $396 $400 $353 $420 $332 $387 $319 $373 $374 $369 $301 $358 $300 $282 $337 $309 $291 $270 $200 $231 $100 $0 2004 2005 2006 2007 2008 2009 2010 201
Slide 18: Total Assets ($ in thousands)
Total Assets ($ in thousands) $700 $660 $630 $600 $557 $560 $558 $528 $500 $476 $454 $412 $413 $400 $300 $200 $100 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Definition: Everything that Kish owns that has a monetary value. Examples: Cash, buildings and equipment, loans, and investment secu
Slide 19: Total Net Loans & Deposits
Total Net Loans & Deposits ($ in thousands) $600 Total Net Loans Total Deposits $494 $509 $500 $455 $460 $446 $408 $414 $400 $381 $368 $367 $362 $353 $351 $332 $333 $319 $301 $306 $300 $288 $267 $200 $100 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Net Loans Total Deposits Definition:
Slide 20: Asset Quality
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% 1.73% 1.46% 1.50% 1.34% 1.11% 1.00% 0.80% 0.71% 0.55% 0.50% 0.43% 0.29% 0.33% 0.00% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ¹ Includes Bank Operating Companies in PA and Nationally wi
Slide 22: Classified Assets to Capital
Classified Assets to Capital
Slide 23: 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% 1.43% 1.25% 1.01% 1.00% 1.02% 0.97% 0.98% 1.00% 0.75% 0.50% 0.25% 0.00% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ¹ Includes Bank Operating Companies in PA and Nationally with $500m
Slide 24: 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% 0.35% 0.25% 0.18% 0.12% 0.05% 0.07% 0.05% 0.01% 0.03% 0.01% 0.00% 0.00% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ¹ Includes Bank Operating Companies in PA and Nationally with $500mm to $1B in Ass
Slide 25: 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% 0.75% 0.63% 0.54% 0.52% 0.52% 0.50% 0.50% 0.34% 0.28% 0.25% 0.19% 0.17% 0.07% 0.00% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ¹ Includes all public banks with assets between $300mm to $1B Source: FFIEC Uniform Ban
Slide 26: Capital
Capital
Slide 27: Consolidated Capital Ratios
Consolidated Capital Ratios Leverage Ratio 12.00% KISB Well Capitalized¹ 10.00% 8.6% 8.2% 8.4% 8.3% 8.0% 8.0% 8.00% 7.7% 7.6% 7.4% 7.2% 6.00% 4.00% 2.00% 0.00% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ¹ FDIC minimum to be considered “Well Capitalized”
Slide 28: Consolidated Capital Ratios
Consolidated Capital Ratios Total Risk Based Capital Ratio 16.00% KISB Well Capitalized¹ 14.1% 13.9% 14.00% 13.2% 13.1% 12.00% 11.7% 11.1% 11.3% 10.7% 10.4% 10.4% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ¹ FDIC minimum to be considered “Well Capitalized”
Slide 29: Building the Team
Building the Team
Slide 30: Additions to the Senior Management Team
Additions to the Senior Management Team • Peter Collins EVP, Chief Credit Officer • Robert Crane Sr. VP, Profitability Director • Daniel Keane, CTFA, AEP® VP, Wealth Management Advisor & Trust Officer • Denise Quinn VP, Commercial Relationship Manager
Slide 31: Senior Management Promotions & Alignment
Senior Management Promotions & Alignment • Gregory Hayes EVP, Head of Retail and Client Solutions • Suzanne White Sr. VP, Human Resources Director • Doug Baxter VP, Accounting and Controls Manager • Rob Sunday VP, Compliance Officer
Slide 32: Market Share
Market Share
Slide 33: 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% 2008 2009 2010 2011 2012 2013 2014 Source: www.snl.com, Data as of 12/31/2014
Slide 34: 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% 2008 2009 2010 2011 2012 2013 2014 Source: www.snl.com, Data as of 12/31/2014
Slide 35: Market Presence: Centre County
Market Presence Centre County - #8 Ranking 25.0% PNC FNB 20.0% National Penn Bank Citizens Bank M&T 15.0% Northwest Savings Bank Jersey Shore Bank 10.0% Kish Bank Branch Banking and 5.0% Trust Co. (BB&T) CNB Bank Santander Bank 0.0% 2008 2009 2010 2011 2012 2013 2014 Source: www.snl.com, Data as of
Slide 36: Community Alignment
Community Alignment
Slide 37: Mifflin County
Mifflin County
Slide 38: Mifflin County
Mifflin County
Slide 39: Huntingdon County
Huntingdon County
Slide 40: Huntingdon County
Huntingdon County
Slide 41: Centre County
Centre County
Slide 42: Centre County
Centre County
Slide 43: Kish Celebrates Community
Kish Celebrates Community
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% 14.0% 13.3% 13.0% 13.3% 12.8% 12.0% 10.3% 9.7% 9.8% 9.7% 9.5% 10.0% 8.6% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 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% 4.24% 4.00% 3.34% 3.00% 2.81% 2.56% 2.00% 1.00% 0.00% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 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% 200% 185% 189% 164% 150% 133% 107% 103% 93% 92% 97% 100% 86% 80% 50% 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 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 – 2014 $43.00 $43.00 $42.00 $41.00 $40.00 $38.65 $39.00 $38.00 $37.00 $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 2014 Apr-2015
Slide 49: Summary
Summary
Slide 50: Financial Summary
Financial Summary • Continued growth in assets • Record net income • Diversified revenue mix and strong business unit performance • Improved efficiencies and reduced operating expenses • Improved risk profile • 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. • Position company to pursue strategic opportunities – Target bank and non-bank acquisitions in attractive markets – Kish Bancorp stock • Promote the brand – Tell the Kish story • Manage risk profile – Maintain strong enterprise wide risk management program
Slide 54: Risk Ratings
Risk Ratings Risk Ratings for Period 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: Strategic Objectives
Strategic Objectives • Kish will become the recognized leader among regional community banks in the greater State College/Centre County market • By the fall of 2015 (September 30) or before, Kish will be prepared to execute a bank, insurance agency, or wealth management acquisition • Elevate our mar
Slide 56: National Recognition
National Recognition • Ranked in American Banker magazine’s list of Top 200 community banks in the United States • Nine consecutive years • Blue Ribbon Bank Commendation of Excellence indicating that we have “met exceptionally high standards”
Slide 57: Shareholders need to speak up and speak out.
Shareholders need to speak up and speak out.
Slide 58: Congratulations Directors!
Congratulations Directors!
Slide 59: 2014 Profit Sharing Meeting
2014 Profit Sharing Meeting