Toour
Shareholders.
We are pleasedto releasefinancial results (unaudited) for the quarter ending June 30, 2022. Highlights for the first six months are as follows:
- Consistently strong core earnings offsetting a decline of $1.6 million in non-recurring PPP loan fees and almost $700 thousand in mortgage loan originations fees compared to the first half of 2021
- Total deposit growth of 7.8% that combined with sustained loan growth of 9.9% to drive a significant expansion in net interest income
- Strong internal capital formation supported by healthy retained earnings, up 9.3% from the prior year, while maintaining excellent return on shareholders' equity of 13.4%
- Healthy credit quality metrics that have remained positive throughout the pandemic
- Continued expansion into contiguous Pennsylvania counties
- Sustained production by the northeastern Ohio lending group
- Well-controllednoninterest expense that remained level year over year
BALANCE SHEET
The Corporation's total assets ended the period at $1.219 billion, an increase of $59.7 million, or 5.15%, compared to total assets of $1.159 billion as of June 30, 2021. Total loans outstanding grew year over year by $84.6 million to $941.4 million, or 9.87%, despite the final forgiveness of nearly $41 million in PPP loans since June 30, 2021. Investment securities increased to $183.1 million, a $5.6 million increase over the securities balance a year earlier, as this category of earning assets became more attractive due to rising interest rates. Total deposits grew by $72.6 million to $1.001 billion, an increase of 7.82% from $928.8 million a year ago, with
a continued notable expansion in core deposits created by new customer acquisition.
NET INCOME
Net income for the six months ended June 30, 2022, was $5.36 million, an increase of $146 thousand, or 2.79%, compared to $5.22 million for the same period in 2021. When non-recurring PPP loan fees are eliminated, where these fees were recorded, net interest income showed an increase of 7.2% year over year. A reduction of $500 thousand in the loan loss provision reflected continued strong loan quality and also contributed to favorable results for the first half of 2022. Finally, the expansion in net interest income also benefitted from the increase in interest rates and the ability to manage our cost of funds.
Noninterest income for the first six months of 2022 decreased 3.95% overall, compared to the same period last year, which is mainly attributable to a decline in gains on the sale of residential mortgage loans of $692 thousand, as higher mortgage rates slowed demand. This decrease was offset in large part due to strong results by several key nonbanking units, with year-over-year increases in Wealth Management revenue of $310 thousand and Insurance commissions of $186 thousand.
Year over year, noninterest expense increased by $239 thousand, or 1.46%, to $16.68 million as of June 30, 2022, compared to $16.44 million the prior year. In part, the increase reflects higher occupancy expense related to the opening of the new Kish Innovation Center and higher data processing fees associated with a strong expansion in new customer numbers. All other expense categories were well controlled when compared to the prior year.
DIVIDEND
On July 1, the Board of Directors declared a quarterly dividend in the amount of $0.32 per share, payable July 29, 2022, to shareholders of record as of July 15, 2022. Return on shareholders' equity continued to be strong at 13.35%. As always, your ownership stake in Kish Bancorp is greatlyappreciated.
Sincerely,
William P. Hayes
Chairman and CEO
CONSOLIDATED BALANCE SHEET
(Unaudited; in thousands)
June 30, 2022 | June 30, 2021 | ||||
ASSETS | |||||
Cash and due from banks | $ | 10,440 | $ | 10,173 | |
Interest-bearing deposits with | 18,606 | 50,910 | |||
other institutions | |||||
Cash and cash equivalents | 29,046 | 61,083 | |||
Certificates of deposit in other | 245 | 245 | |||
financial institutions | |||||
Investment securities available | 170,697 | 164,272 | |||
for sale | |||||
Equity securities | 2,602 | 2,431 | |||
Investment securities held to | 9,766 | 10,750 | |||
maturity | |||||
Loans held for sale | 2,065 | 3,869 | |||
Loans | 941,360 | 856,778 | |||
Less allowance for loan losses | 10,681 | 10,276 | |||
Net Loans | 930,679 | 846,502 | |||
Premises and equipment | 26,966 | 25,228 | |||
Goodwill | 3,561 | 3,561 | |||
Regulatory stock | 5,893 | 6,245 | |||
Bank-owned life insurance | 24,088 | 16,439 | |||
Accrued interest and other assets | 13,423 | 18,703 | |||
TOTAL ASSETS | $ | 1,219,031 | $ | 1,159,328 | |
LIABILITIES | |||||
Noninterest-bearing deposits | $ | 184,037 | $ | 169,037 | |
Interest-bearing deposits | 817,432 | 759,799 | |||
Total Deposits | 1,001,469 | 928,836 | |||
Short-term borrowings | 67,094 | 67,661 | |||
Other borrowings | 66,783 | 69,450 | |||
Accrued interest and other | 13,875 | 19,238 | |||
liabilities | |||||
TOTAL LIABILITIES | 1,149,221 | 1,085,185 | |||
STOCKHOLDERS' EQUITY | |||||
Common stock, $0.50 par value; | |||||
8,000,000 shares authorized, | 1,349 | 1,349 | |||
2,697,500 shares issued | |||||
Additional paid-in capital | 3,920 | 3,944 | |||
Retained earnings | 80,111 | 73,291 | |||
Accumulated other | (12,016) | (1,036) | |||
comprehensive income | |||||
Treasury stock, at cost (64,776 | (3,554) | (3,405) | |||
and 70,882 shares) | |||||
TOTAL STOCKHOLDERS' EQUITY | 69,810 | 74,143 | |||
TOTAL LIABILITIES AND | $ | $ | |||
STOCKHOLDERS' EQUITY | 1,219,031 | 1,159,328 | |||
CONSOLIDATED STATEMENT OF INCOME
(Unaudited; in thousands) | |||||
Six Months Ended | |||||
June 30, 2022 | June 30, 2021 | ||||
INTEREST AND DIVIDEND | |||||
INCOME | |||||
Interest and fees on loans: | |||||
Taxable | $ | 17,357 | $ | 17,681 | |
Exempt from federal income tax | 546 | 655 | |||
Investment securities: | |||||
Taxable | 1,778 | 1,540 | |||
Exempt from federal income tax | 118 | 151 | |||
Interest-bearing deposits with | 80 | 49 | |||
other institutions | |||||
Other dividend income | 239 | 314 | |||
TOTAL INTEREST AND DIVIDEND | |||||
INCOME | 20,118 | 20,390 | |||
INTEREST EXPENSE | |||||
Deposits | 1,233 | 1,614 | |||
Short-term borrowings | 18 | 24 | |||
Other borrowings | 1,582 | 1,637 | |||
TOTAL INTEREST EXPENSE | 2,833 | 3,275 | |||
NET INTEREST INCOME | 17,285 | 17,115 | |||
Provision for loan losses | 0 | 500 | |||
NET INTEREST INCOME AFTER | |||||
PROVISION FOR LOAN LOSSES | 17,285 | 16,615 | |||
NONINTEREST INCOME | |||||
Service fees on deposit accounts | 1,015 | 856 | |||
Investment securities gains, net | 18 | 11 | |||
Equity securities gains, net | (91) | 299 | |||
Gain on sale of loans, net | 675 | 1,367 | |||
Earnings on Bank-owned life | 380 | 301 | |||
insurance | |||||
Insurance commissions | 1,503 | 1,317 | |||
Travel agency commissions | 91 | 33 | |||
Wealth management | 1,287 | 977 | |||
Benefits consulting | 328 | 318 | |||
Other | 489 | 450 | |||
TOTAL NONINTEREST INCOME | 5,695 | 5,929 | |||
NONINTEREST EXPENSE | |||||
Salaries and employee benefits | 10,124 | 10,160 | |||
Occupancy and equipment | 2,230 | 1,907 | |||
Data processing | 1,201 | 882 | |||
Professional fees | 376 | 257 | |||
Advertising | 267 | 250 | |||
Federal deposit insurance | 378 | 300 | |||
Other | 2,100 | 2,681 | |||
TOTAL NONINTEREST EXPENSE | 16,676 | 16,437 | |||
INCOME BEFORE INCOME TAXES | 6,304 | 6,107 | |||
Income taxes | 943 | 892 | |||
NET INCOME | $ | 5,361 | $ | 5,215 | |
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited; in thousands, except for per share data)
Six Months Ended | ||||
June 30, 2022 | June 30, 2021 | |||
Net Income | $ | 5,361 | $ | 5,215 |
Total Assets | $ | 1,219,031 | $ | 1,159,328 |
Loans Outstanding | $ | 941,360 | $ | 856,778 |
Total Deposits | $ | 1,001,469 | $ | 928,836 |
ROA (annual) | 0.88% | 0.93% | ||
ROE (annual) | 13.35% | 15.55% | ||
Earnings per Share | $ | 2.04 | $ | 1.99 |
Dividends per Share | $ | 0.64 | $ | 0.56 |
MARKET MAKERS
BOENNING & SCATTERGOOD, INC.
Contact: Eugene Bodo 1-800-883-1212
4 Tower Bridge, 200 Barr Harbor Drive, Suite 300 West Conshohocken, PA 19428-2979
JANNEY MONTGOMERY SCOTT, LLC
Contact: Anthony Bello 1-800-526-6397
1475 Peachtree Street NE, Suite 800 Atlanta, GA 30309
RAYMOND JAMES AND ASSOCIATES, INC.
Contact: Anthony LanFranca 312-655-2961
222 South Riverside Plaza, 7th Floor Chicago, IL 60606
Kish Bancorp, Inc. stock is traded on the OTCQX market under the stock ticker symbol: KISB. For more information, please visit ir.kishbancorp.com.
4255 EAST MAIN STREET, BELLEVILLE, PA 17004
1-800-981-5474| MYKISH.COM
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2022 SECOND QUARTER FINANCIAL REPORT
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Kish Bancorp Inc. published this content on 18 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 July 2022 14:23:05 UTC.