Kish Bancorp, Inc. · OTC:KISB
Kish Bancorp — Shareholder Meeting (May 2019)
55 slides from Kish Bancorp's shareholder meeting presentation, May 7, 2019
Slide 1: 2019 Annual Shareholder Meeting
Slide 2: Mission
Mission To achieve sustained success through an unwavering focus on fulfilling our clients’ financial needs.
Slide 3: Director Introductions
Director Introductions
Slide 4: 2018 in Review
2018 in Review
Slide 5: 2018 Highlights
2018 Highlights • Consolidated competitive gains • Continued market disruption served us well • Sustained client acquisition focus • Expanded market share in all counties • Regulatory Relief (Dodd Frank Rollback) • New and refurbished “Expect More” branches • Team development and realignment
Slide 6: 2018 Highlights
2018 Highlights • Affiliate performance • 2 for 1 stock split in October • Uplist to the OTCQ Exchange • Design, engineering and site development for the Innovation and Technology Center • Completed evaluation of the Core Modernization Project • Elevated community reinvestment and community alignmen
Slide 7: 2018 Financial Highlights
2018 Financial Highlights
Slide 8: Total Assets ($ in millions)
Total Assets ($ in millions) $900 $851 $850 $811 $800 $750 $725 $697 $700 $660 $650 $600 $550 $500 $450 $400 2014 2015 2016 2017 2018
Slide 9: Gross Loans ($ in millions)
Gross Loans ($ in millions) $700 $650 $637 $600 $575 $550 $495 $500 $451 $450 $420 $400 $350 $300 $250 2014 2015 2016 2017 2018
Slide 10: Total Deposits ($ in millions)
Total Deposits ($ in millions) $690 $682 $670 $654 $650 $630 $610 $590 $570 $562 $550 $543 $530 $509 $510 $490 $470 $450 2014 2015 2016 2017 2018
Slide 11: Loans/Deposits
Loans/Deposits 100.00% KISB PA Peers¹ 95.00% 92.11% 90.00% 86.95% 87.05% 85.00% 82.09% 81.41% 80.00% 75.00% 70.00% 2014 2015 2016 2017 2018 ¹ Includes all public banks with assets between $300mm to $1B Source: FFIEC Uniform Bank Performance Report
Slide 12: Market Share of Bank Deposits
Market Share of Bank Deposits Mifflin County 5-Year Deposit Compound Annual Growth Rate (CAGR) 2018 2017 2018 Kish Bank 44.23% 42.05% Kish Bank 4.94% Juniata Valley Bank 22.50% 23.54% Mifflin County Market 2.58% First National Bank 13.95% 13.29% of PA Mifflin County SB 11.36% 12.60% Deposits Inside
Slide 13: Market Share of Bank Deposits
Market Share of Bank Deposits Huntingdon County 5-Year Deposit Compound Annual Growth Rate (CAGR) 2018 2017 2018 Community State 31.29% 31.61% Bank of Orbisonia Kish Bank 5.74% First National Bank 22.00% 23.79% Huntingdon County Market 1.36% of PA Kish Bank 19.22% 18.23% Riverview Bank 13.18% 11.92%
Slide 14: Market Share of Bank Deposits
Market Share of Bank Deposits Centre County 5-Year Deposit Compound Annual Growth Rate (CAGR) 2018 2017 2018 PNC Bank 23.57% 23.74% Kish Bank 13.66% First National Bank 19.55% 17.02% of PA Centre County Market 5.00% BB&T 10.24% 11.87% Citizens Bank of PA 8.69% 9.11% Deposits Inside of the Market M&T
Slide 15: Income Highlights
Income Highlights 2018 2017 • Strong growth in net Net Interest Income $ 25,757,080 $ 23,101,275 interest income; increased Provision for loan losses 955,000 600,000 by 11.5% or $2.7 million Noninterest Income 7,439,640 6,423,346 • Noninterest Income Securities Gains (178,194) 101,117 increase by 14
Slide 16: Net Income ($ in thousands)
Net Income ($ in thousands) $6,500 $6,029 $6,000 $5,500 $5,000 $4,617 $4,494 $4,500 $4,359 $4,140 $4,000 $3,500 $3,000 2014 2015 2016 2017 2018
Slide 17: Net Interest Income and Margin
Net Interest Income and Margin ($ in thousands) $26,000 Net Interest Income ($000s) Net Interest Margin $25,757 4.00% $25,000 3.80% $24,000 $23,101 $23,000 3.60% $22,000 $21,000 $20,868 3.40% $20,000 $19,661 $19,000 $18,630 3.20% $18,000 $17,000 3.00% 2014 2015 2016 2017 2018
Slide 18: Noninterest Income ($ in thousands)
Noninterest Income ($ in thousands) $7,500 $7,440 $7,096 $7,000 $6,748 $6,492 $6,500 $6,423 $6,000 $5,500 $5,000 2014 2015 2016 2017 2018
Slide 19: Noninterest Expense ($ in thousands)
Noninterest Expense ($ in thousands) Salaries Occupancy Data Processing All Other $28,000 $25,571 $23,884 $23,000 $22,179 $21,049 $19,692 $18,000 $13,000 $8,000 2014 2015 2016 2017 2018
Slide 20: Return on Average Assets
Return on Average Assets 0.80% 0.72% 0.70% 0.67% 0.66% 0.65% 0.60% 0.54% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% 2014 2015 2016 2017 2018
Slide 21: Net Charge-Offs/Avg. Loans
Net Charge-Offs/Avg. Loans 0.30% KISB PA Peers¹ 0.25% 0.20% 0.17% 0.15% 0.11% 0.10% 0.05% 0.05% 0.05% 0.01% 0.00% 2013 2014 2015 2016 2017 2018 -0.05% -0.04% -0.10% ¹ Includes Bank Operating Companies in PA with $500mm to $1B in Assets Source: SNL Financial
Slide 22: Nonaccrual Loans/Loans
Nonaccrual Loans/Loans KISB PA Peers¹ 3.00% 2.50% 2.00% 1.53% 1.60% 1.50% 1.27% 1.14% 1.00% 0.81% 0.50% 0.22% 0.00% 2013 2014 2015 2016 2017 2018 ¹ Includes Bank Operating Companies in PA with $500mm to $1B in Assets Source: SNL Financial
Slide 23: Loans 30-89 Days Past Due
Loans 30-89 Days Past Due KISB Peers¹ 1.00% 0.90% 0.80% 0.70% 0.60% 0.52% 0.50% 0.40% 0.30% 0.20% 0.12% 0.13% 0.07% 0.09% 0.10% 0.05% 0.00% 2013 2014 2015 2016 2017 2018 ¹ Includes all public banks with assets between $300mm to $1B Source: FFIEC Uniform Bank Performance Report
Slide 24: Return on Average Equity
Return on Average Equity 12.00% 10.71% 10.00% 9.54% 8.89% 8.54% 8.00% 7.45% 6.00% 4.00% 2014 2015 2016 2017 2018
Slide 25: Stock Performance (EOY)
Stock Performance (EOY) $32 $32 $29 $27 $23 $22 $22 $19 $17 $17 $12 2013 2014 2015 2016 2017 2018 All stock prices reflect 2 for 1 stock split that occurred in October 2018 ¹ Stock price as of 4/28/2019
Slide 26: Dividend Yield on Common Stock
Dividend Yield on Common Stock 7.00% KISB PA Peers¹ National Peers¹ 6.00% 5.00% 4.24% 4.00% 4.00% 3.74% 3.17% 3.21% 3.00% 2.00% 1.00% 2014 2015 2016 2017 2018 ¹ Includes Bank Operating Companies in PA and Nationally with $500mm to $1B in Assets Source: SNL Financial
Slide 27: Building the Team
Building the Team
Slide 28: Senior Management Promotions
Senior Management Promotions • Kim Bubb – SVP, Director of Digital Technology Innovation • Terra Decker – SVP, Risk Officer • Kim Dove – SVP, Operations Director • Debra Weikel – SVP, Retail Credit Officer • Chrissy Bagrosky – AVP, Private Client Relationship Manager/CEO, Kish Travel
Slide 29: 2019 to 2021 Strategic Plan
2019 to 2021 Strategic Plan But first, a look back
Slide 30: PSU Smeal APEX Program
PSU Smeal APEX Program “Kish’s core values align with institutions that foster customer relationships and focus on delivering client value.”
Slide 31: The Expect More Store
The Expect More Store
Slide 32: Mission
Mission To achieve sustained success through an unwavering focus on fulfilling our clients’ financial needs.
Slide 33: Twin Rails Strategy
Twin Rails Strategy
Slide 34: Focused
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Slide 35: People don't buy what you do, they buy WHY you do it
“People don’t buy what you do, they buy WHY you do it.” —Simon Sinek
Slide 36: We believe that we can make the lives of those around us better
We believe that we can make the lives of those around us, our employees, our clients, and our communities, better.
Slide 37: Better Lives, Better Communities
BEE RTEIViES BEI ERICOMMUINITIES:
Slide 38: 2019 to 2021 Strategic Plan Summary
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Slide 39: Digital Technology Innovation
Digital Technology Innovation Employees Customers More reliable, faster network Relevant online and mobile experiences Ability to serve customer holistically Simplified product choices State-of-the-art, collaborative working Safe and convenient ways to do business environment Better understanding of
Slide 40: A Vision for Kish 2020
A Vision for Kish 2020 • Redesign of our IT Infrastructure • Overhaul of Information Security Program • Modernization of Core Banking Solution • Quality Employee Experience Kish Innovation Center
Slide 41: IT Infrastructure & Connectivity
IT Infrastructure & Connectivity Hybrid Cloud & Virtual Desktop Solution Core System for the Future The Speeds to Create the REAL Kish Experience Team Member Efficiency
Slide 42: Information Security Program
Information Security Program TECHNOLOGY PEOPLE • We can effectively and • We give employees the efficiently control access knowledge and tools to keep • We build and maintain Kish Bank secure hardened systems • We build processes that • We protect our data at rest and encourage safe behaviors in tra
Slide 43: Core Innovation Project
Core Innovation Project Technology Products & Solutions Core Service Levels & Relationship ww Employee Efficiency & ) es Experience ee) sorwenel Modern Core Platform
Slide 44: Core vendor selection criteria
Company culture Quick Responsiveness response Contractual Executive structure & engagement pricing Network Input in infrastructure strategic capabilities direction Products Agile and approach services
Slide 45: The Employee Experience
The Employee Experience Meet Mica
Slide 46: Kish Innovation Center
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Slide 50: Technology Investment
Technology Investment • Annualized depreciation expense from technology investment – Information Technology and Security $ 75,000 – Core Innovation Project $ 65,000 – Kish Innovation Center $ 550,000
Slide 51: Technology Investment
Technology Investment • Core Innovation Project – 10 year flat contract negotiation – Includes growth and new products • Net Savings over 10 years based on current expense… $11,725,000
Slide 52: Expect More Innovation
Expect More INNOVATION
Slide 53: Report of the Judges
Report of the Judges
Slide 54: Congratulations, Directors!
Congratulations, Directors!
Slide 55: 2019 Annual Shareholder Meeting