Kish Bancorp : Announces First Quarter Financial Results

April 14, 2023

PRESS RELEASE

STATE COLLEGE, PA (KISB) - William P. Hayes, Chairman and CEO of Kish Bancorp, Inc., has announced unaudited financial results for the quarter ending March 31, 2023. Highlights for the first quarter of 2023 include:

• Strong expansion in net income year-to-date of 27.6% over the prior year, driven by sustained loan growth of $156.6 million, or 17.3%
• Significant increase in net interest income after provision for loan losses of $2.5 million, or 31.0%
• Growth in total assets to $1.374 billion, an increase of $136.2 million, or 11.01%, over the prior year
• Healthy internal capital formation, supported by higher retained earnings that grew by 14.7% from the prior year
• Continued strong return on shareholders' equity of 13.75% and return on assets of 0.99%
• Low loan charge-offs and healthy credit quality metrics that remained positive throughout the pandemic and continue to be at exceptional levels
• Continued growth in new customer acquisition in existing markets and expanding contiguous counties
• Noninterest expense that grew commensurately with new client acquisition and expanding team member education

The Corporation's total assets ended the period at $1.374 billion, an increase of $136.2 million, or 11.01%, over total assets of $1.238 billion as of the same period in 2022. Total loans outstanding grew year over year by $156.6 million, or 17.25%, to $1.064 billion. Investment securities increased to $203.4 million, a $4.6 million increase from the same period in the prior year. Total deposits grew by $44.5 million to $1.066 billion, an increase of 4.35% from $1.022 billion a year ago, with a continued notable expansion in core deposits created by new customer acquisition.

"Net income for the first quarter of 2023 was $3.32 million, a strong increase of $716 thousand, or 27.56%, compared to $2.60 million for the first quarter of 2022," Hayes stated. He continued, "Total net interest income after loan loss provision rose $2.54 million, an increase of 31.00%. A reduction of $64 thousand in the credit loss provision reflected continued strong loan quality and contributed to favorable results for the first quarter. Finally, the expansion in net interest income also benefitted from the increase in interest rates and success in controlling the Bank's cost of funds in concert with the overall rise in market rates."

Noninterest income for the first quarter of 2023 decreased 9.16% overall compared to the same period last year, which, Hayes noted, is mainly attributable to a loss of $323 thousand on equity securities. "When this loss is removed, noninterest income increased by 2.46%, which reflects positive results by several key nonbanking units, despite a decrease in gain on sale of residential mortgage loans of $222 thousand. Year-over-year increases in Wealth Management revenue of $44 thousand and Insurance commissions of $76 thousand supported this increase," said Hayes.

Year over year, noninterest expense increased by $1.37 million, or 16.92%, to $9.5 million as of March 31, 2023, compared to $8.12 million during the same period of the prior year. Hayes explained, "In part, the increase reflects higher data processing fees associated with a strong expansion in new customer numbers and investment in the training and education of our employees. Team expansion remains as a lead to salary expense, coupled with the inflationary pressures on compensation expense. Data processing as a line item is higher due to a reclassification of expenses that in the prior year were included in Occupancy. All other expense categories were well controlled when compared to the prior year."

Finally, return on shareholders' equity remained strong at 13.75%, compared to 13.56% for the same period in 2022. The Kish Bancorp, Inc. Board of Directors declared a quarterly dividend in the amount of $0.35 per share, payable April 28, 2023, to shareholders of record as of April 14, 2023.

View the full first quarter financial statement ›

About Kish Bancorp, Inc.

Kish Bancorp, Inc. is a diversified financial services corporation headquartered in Belleville, PA with executive offices in State College and an Innovation Center in Reedsville. Kish Bank, a subsidiary of Kish Bancorp, Inc., operates 16 offices and financial centers serving Centre, Mifflin, Huntingdon, Blair, and Juniata counties, and a Loan Production Office in Hudson, Ohio. In addition to Kish Bank, other business units include: Kish Insurance, an independent property and casualty insurance agency; Kish Financial Solutions, which offers trust, fiduciary, and wealth management advisory services; Kish Benefits Consulting, which provides employee benefits consulting services; and Kish Travel, a full-service travel agency. KISB is the OTCQX stock ticker symbol for Kish Bancorp, Inc. For additional information, please visit ir.kishbancorp.com or otcmarkets.com/stock/KISB.

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