Kish Bank Investor Presentation — March 2020 —
Forward-Looking Statements This presentation and information supplemental hereto contain, and during the course of oral and written presentations connected herewith management may make, projections and estimates with respect to future events or future financial performance, as well as other “forward-looking statements” (as that term is defined in the Securities Act of 1933) relating to Kish Bancorp, Inc. (referred to herein as “forward-looking statements”). Investors are cautioned not to place undue reliance on any forward-looking statements and are entitled and urged to conduct their own due diligence with respect to all matters relating to this offering and therefore are cautioned that they are responsible for verifying the likelihood that any forward- looking statements are or will remain correct or accurate in the future. The forward-looking statements are also subject to the specific factors set forth in this presentation under the heading “Risk Factors.” In addition, the forward-looking statements are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are either beyond the control of Kish Bancorp, Inc. and its management or not reasonably capable of predicting at this time. In addition, the forward-looking statements are subject to assumptions with respect to future business strategies and decisions of Kish Bancorp, Inc. that are subject to change. Should any of the risks, uncertainties or other factors referred to in this presentation or otherwise by management of Kish Bancorp, Inc. materialize, or should underlying assumptions prove incorrect, Kish Bancorp, Inc.’s actual results may differ materially from the anticipated results expressed or implied in these forward-looking statements. Kish Bancorp, Inc. and its management and agents disclaim, and do not assume, any obligation to update the information provided in this or any related presentation to correct any forward-looking statements, whether because of future events or developments or otherwise. 2
Kish Bancorp Snapshot Who We Are • A fully diversified financial services company • Deep roots dating to 1900 • Board and management ownership • Recognized as the leading community bank in the region • Driven by a differentiated client experience • Dominant market share • Rapidly growing with significant potential in Centre County • Quality is a hallmark Financial Profile $918 million in total assets $680 million in net loans $710 million in deposits $64 million in stockholders’ equity Market capitalization of $78 million 11.56% ROAE 3 Financial data as of December 31, 2019
Executive Leadership William P. Hayes Gregory T. Hayes Robert S. McMinn, Mark J. Cvrkel Peter D. Collins Richard A. Sarfert Suzanne M. White Esq. Chairman & Chief President & Chief Executive Vice President, Executive Vice President, Executive Vice President, Senior Vice President, Executive Officer Operating Officer Chief Financial Officer Chief Credit Officer Chief Lending Officer Human Resources & Executive Vice President, Development Director General Counsel • 43 years with Kish • 14 years with Kish • 17 years with Kish • 4 years with Kish • 6 years with Kish • 4 years with Kish • 13 years with Kish • Past Chair of PA • Member of PA • Extensive background • Extensive executive • 38 years in banking • 30+ years in the • Member of the PA Bankers Association Bankers Association in law and executive experience at banks industry financial services Bankers Association Board of Directors management with assets in excess industry focused on Professional • Has grown Kish from • Extensive of $1 billion commercial lending Development • Member of Summit $28 million to $918 management Committee • Member of the PA million in assets in Technology Group experience at banks time as CEO Board of Directors Bankers Association ranging from $3 40-Year Club billion to $100 billion • Drives technological in assets innovation at Kish 4
Strong Board The Board of Directors of Kish Bancorp, Inc. Front row: Kathleen Rhine, Bill Hayes, Greg Hayes, and Fran Vaughn. Back row: Eric Barron, Bill Lake, George Woskob, Paul Howes, Bill Dancy, Jim Lakso, Paul Silvis, and Spyros Degleris. Not pictured: Ed Friedman. 5
Markets Deposit Market Share Mifflin • 9 locations Market Deposits Market Total • Ranked #1 with 43.66% of deposit market share County Share in Market Share Market Rank ($000) (%) ($000) Huntingdon Mifflin, PA 1 347,172 43.66% 795,209 • 3 locations Huntingdon, PA 3 133,987 21.58% 620,935 • Ranked #3 with 21.58% of deposit market share Centre, PA 6 218,799 6.21% 3,462,130 Centre • 4 locations • Ranked #6 with 6.21% of deposit market share • Ranked #1 among community banks Data as of June 30, 2019 6 Source: FDIC
More Than Just a Bank • • A fully diversified financial services company Banking – Full-service retail and commercial banking with a comprehensive suite of services to meet all – Mortgage banking business and personal needs • Wealth Management • Fee and non-interest income of 24.9% of net – Financial planning and investment advisory operating income – Fiduciary, trust and estate management • Active acquirer of non-bank businesses • Insurance – Property and casualty insurance • Benefits Consulting – Employee healthcare and benefits consulting services • Travel – Custom individual and group travel 7
Why Invest in Kish Bancorp? • A market leader in Central Pennsylvania with rapidly expanding market share History of Strong Growth, • Average annual return on equity of 9.51% since 1990 • Earnings growth in last two years of 16.2% and 45.0% respectively Performance, and Innovation • First PA bank with insurance and travel companies • Major presence and rapidly growing in Centre County • #1 among community banks in Centre County market Excellent Growth Potential • Centre County market share grown by over $100 million since 2014 (4.53% of market share to 6.21%) 1 • Kish’s state-of-the-art Expect More Store opened in 2016 – vision of the “bank of the future” • A focus on small businesses, professionals, high net worth segments, non-profit organizations Sophisticated and Distinctive • Emphasis on highly customized service, prompt decision making, and client access to local executive team • Innovative, diversified approach to fulfilling clients’ financial needs through trust, wealth solutions, travel, Alternative to Other Providers insurance, and employee benefits consulting • Continuous investment in technology to enhance delivery of services and advance Kish’s ability to compete in a digital environment Focused on the Future: • Construction of Kish Innovation Center to be completed in 2020—designed to support Kish’s long-term Technology and Innovation sustainability through an enhanced capacity for training, collaboration, and innovation • Transformation of network, IT infrastructure, and core banking partner to take place in 2020 1 Data as of December 31, 2019 8
Innovative Technology • President Greg Hayes featured in ABA Journal in January 2020 • Major commitment to next-generation banking • Migrating multiple systems to cloud-based solutions – Including hardware infrastructure, productivity software, core platform, phone system • Refreshing cyber and information security program • Core processing transformation 9
Branch of the Future 10
Kish Innovation 11
Kish Innovation 12
Kish Innovation Center 13
Core Philosophy “We believe that we can make the lives of those around us—our employees, our clients, and our communities— better .” 14
Fostering Community Well-Being 15
Strategic Focus • • Innovative/disruptive strategies Benefit from market disruption – Differentiated business model – Acquisitions – Focus on technology and digital delivery – Branch closings – Customer needs oriented • Strengthen the franchise – Streamlined branch model – Geographic expansion • Build a more powerful team – New digital delivery channels – Digitally enabled – Evolving risk management – Focused on client acquisition/fulfillment – Focus on Centre Region – Expanding management depth • Grow fee income based revenue • Community leadership – Expansion through strategic acquisitions – Visible and engaged – Focus on diversified revenue sources • Sustainability – Cross-sales to key segments – Strong financial performance and investor returns – Mortgage Banking – Prudential capital management 16
Shareholder Focus • Strong organic revenue growth and scalable infrastructure leading to double digit growth in EPS and return on shareholder equity • 1 Net income of $7.0 million in 2019 compared to $4.4 million in 2014 • 1 Earnings per share $2.80 in 2019 compared to $1.82 in 2014 • 1 Market Valuation of 125.3% of TBV in 2019 compared to 99.7% in 2014 • Consistent dividend expansion with a current yield of ~3.6% • 1 Share price of $30.75 in 2019 increased 59% compared to $19.33 in 2014 1 For comparability, per share data for 2014 has been adjusted to reflect the 2-for-1 stock split in 2018. 17
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