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Kish Bancorp, Inc. Announces First Quarter Financial Results

April 18, 2022

 

PRESS RELEASE

State College, Pennsylvania (KISB) – William P. Hayes, Chairman and CEO of Kish Bancorp, Inc., has announced unaudited financial results for the quarter ending March 31, 2022. Highlights of the first quarter include:

  • Earnings – consistently strong core earnings offsetting a decline of $1 million in non-recurring PPP loan fees compared to the first quarter of 2021
  • Growth – total deposit growth of 11.4% as Kish continued to attract new banking relationships, which combined with sustained loan growth of 13.8% to drive balance sheet expansion of 8.6% compared to March 31 of last year
  • Positive Capital Formation and Shareholder Return – healthy capital formation supported by strong retained earnings, up 9.4% from the prior year, with excellent return on shareholders’ equity of 13.6%
  • Credit Quality – excellent credit quality metrics that have remained positive throughout the pandemic
  • Expansion – continued expansion into contiguous Pennsylvania counties with sustained production by Kish’s northeastern Ohio lending group
  • Expense Control – noninterest expense remained level and well controlled year over year

­­­­­­­­Kish Bancorp’s total assets ended the period at $1.238 billion, an increase of $97.5 million, or 8.55%, compared to total assets of $1.140 billion as of March 31, 2021. Total loans outstanding grew year over year by $110 million, or 13.76%, to $907.6 million.

“We continue to see PPP loan forgiveness as a headwind to the expansion of total loans outstanding, with PPP loans declining by $57 million year over year. The total PPP portfolio now amounts to just $3.4 million,” Hayes noted.

Investment securities increased to $198.8 million, a $30.4 million increase over the securities balance a year earlier, as this element of earning assets began to be advantaged by rising interest rates. Total deposits grew by $104.8 million to $1,022 million, an increase of 11.44% from $916.7 million a year ago. “Deposit growth was especially notable given the continued expansion in core deposits created by new customer acquisition,” Hayes stated.

“Net income for the quarter was $2.6 million, a very modest decrease of $62 thousand, or 2.32%, compared to $2.66 million for the same period in 2021. However, when non-recurring PPP loan fees are eliminated, net income rose sharply when compared to the first quarter of 2021,” said Hayes. He continued, “The same impact is reflected in net interest income after loan loss provision, which declined by a nominal $99 thousand in 2022 compared to the prior year. However, when PPP loan fees are eliminated from interest income, where these fees were recorded, this number showed an increase of 6.1%. The adjusted expansion in net interest income benefitted from the continued decline in interest expense on deposits.”

Noninterest income increased 3.71% overall—attributable in large part to strong first quarter results by several key nonbanking Kish units, with year-over-year increases in Wealth Management revenue of $229 thousand and Insurance commissions of $110 thousand. “This expansion helped to offset a significant decline in gains on sales of residential mortgage loans, as higher rates cooled demand for residential mortgage loans,” said Hayes.

Noninterest expense increased year over year by $102 thousand, or 1.27%, to $8.12 million as of March 31, 2022, compared to $8.02 million the prior year. In part, this increase reflects higher occupancy expense related to the opening of the new Kish Innovation Center in Reedsville.

The Board of Directors declared a quarterly dividend in the amount of $0.32 per share, payable April 29, 2022, to shareholders of record as of April 15, 2022. Return on shareholders’ equity continues to be strong at 13.56%.

 

View the full 2022 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 17 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. For additional information, please visit MyKish.com. KISB is the OTC stock ticker symbol for Kish Bancorp, Inc.

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