Kish Bancorp Announces Third Quarter Results | News, Sports, Jobs

STATE COLLEGE – William P. Hayes, President and Chief Executive Officer of Kish Bancorp Inc., announced unaudited financial results for the nine months ending September 30, 2022. Highlights for the first nine months included:

• Strong net profit expansion of 20% over the prior year, and more than offsetting $2.6 million in one-time revenue in the first nine months of 2021

• 9.4% increase in quarterly dividend, representing the seventh consecutive year of increased dividends

• Total deposit growth of 8.1%, combined with sustained loan growth of 14.4%, to drive significant net interest income expansion

• Strong internal capital formation supported by higher retained earnings, up 10.8% year-on-year

• Excellent return on equity of 14.5%

• Sound credit quality indicators that have remained positive throughout the pandemic

• Continued expansion into contiguous Pennsylvania counties and production supported by Northeast Ohio Lending Group

• Non-interest expenses well controlled

Kish Bancorp’s total assets ended the period at $1.285 billion, an increase of $88 million, or 7.36%, from total assets of $1.197 billion as of September 30, 2021. The total Loans outstanding increased year-over-year by $124 million, or 14.35%, to $988.3 million.

“This increase comes on top of the final cancellation of nearly $22 million in PPP loans since September 30, 2021 and reflects the rapid and continued expansion of new client relationships,” Hayes noted.

He added, “Expansion remains an important area of ​​focus for Kish with the recent opening of a new branch in Pine Grove Mills and the upcoming November opening of the new full-service banking office in Mifflintown at the Kish Insurance site ( formerly Sausman) on Route 35. Expansion into Blair County will take place in late spring with the planned opening of a full-service Altoona branch at Logan Valley Boulevard Weis Plaza.

Investment securities decreased to $172.5 million, down $10.7 million from the prior year as cash flow from investments helped fund loan growth . Total deposits increased by $77.8 million to $1.043 billion, an increase of 8.05% from $965.7 million a year ago, with a notable and continued expansion of base deposits created by acquiring new customers.

Highlighting the strong expansion in net income for the period, Hayes said: “Net income for the nine months ended September 30, 2022 was $9.05 million, an increase of $1.5 million, or 20%, compared to $7.56 million for the same period in 2021. Total net interest income increased by $2.336 million, an increase of 9.27%. When the one-time 2021 PPP loan fees are eliminated, net interest income increased 16.4% year-over-year.

“A $780,000 reduction in loan loss provision reflects continued strong loan quality and also contributed to favorable results for the first nine months of 2022. Finally, the expansion in net interest income also benefited from rising interest rates and the ability to manage our cost of funds in concert with the overall rise in market rates,” He continued.

Non-interest revenue for the first nine months of 2022 was down 1.43% overall compared to the same period last year, which Hayes observed was mainly due to a decline of $959,000. gains on the sale of residential mortgages as rising interest rates significantly slowed demand for mortgages. .

“This decline was largely offset by strong results from several key non-banking units, with year-over-year increases in wealth management revenue of $470,000 and insurance fees of $172. $000.” said Hayes, adding, “Kish Bancorp’s compound earnings momentum is particularly remarkable given the 22.9% growth in net profit in 2021 compared to 2020.”

Year-over-year, non-interest expense increased $1.04 million, or 4.24%, to $25.62 million from $24.58 million last year. last year. The increase partly reflects a higher occupancy charge related to the opening of the Kish Innovation Center and higher data processing charges associated with a surge in new customers. All other expense categories were well controlled compared to the previous year.

Kish Bancorp’s Board of Directors has declared a quarterly dividend in the amount of $0.35 per share, payable on October 31, 2022, to shareholders of record on October 14, 2022. The increase of $0.03 from the previous quarterly dividend represents an increase of 9.4%. Hayes underlined the importance of this increase, stating, “2022 marks the seventh consecutive year of dividend increases and the ninth in the past 10 years. Return on equity remained strong at 14.51%.”

Kish Bancorp Inc. is a diversified financial services company headquartered in Belleville with executive offices at State College and an innovation center in Reedsville. Kish Bank, a subsidiary of Kish Bancorp Inc., operates 16 offices and financial centers serving Center, Mifflin, Huntingdon, Blair and Juniata counties, as well as a loan origination 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 benefits consulting services; and Kish Travel, a full-service travel agency. For more information, please visit KISB is the OTC ticker symbol of Kish Bancorp, Inc.

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