Kish Bancorp Inc. Reports Fourth Quarter Financial Results | News, Sports, Jobs
STATE COLLEGE – William P. Hayes, President and Chief Executive Officer of Kish Bancorp Inc., announced unaudited financial results for the full year ending December 31, 2021. Highlights from 2021 include:
¯Strong year-over-year net income growth of 22.9%
¯Deposit and balance sheet growth of 14.2% and 11.4%, respectively, compared to 2020
¯Residential mortgages sustained at exceptionally high levels achieved in 2020, with revenue from the sale of mortgages remaining stable
¯Strong internal capital formation, up 10.2% vs. 2020, while delivering an excellent return on equity of 14.1%, vs. 12.9% in 2020
¯Healthy credit quality indicators that have remained positive throughout the pandemic
¯Continued expansion into contiguous Pennsylvania counties
¯Strong results from Northeast Ohio Loan Group
¯Strong ROI from operations technology investments, with data processing spend down 12.7% vs. 2020
Kish Bancorp’s total assets ended the period at $1.233 billion, an increase of $126.2 million, or 11.40%, from total assets of $1.107 billion as of December 31, 2020. Total loans outstanding increased year over year by $113 million to $878.7 million, an increase of 14.75%. Loans disbursed in 2021 to local businesses under the third round of the Paycheck Protection Program totaled $35 million, which was more than offset by a $67.8 million PPP loan forgiveness to the course of the year.
“The biggest contributor to loan growth in 2021 was the Northeast Ohio Lending Team, which generated more than $77 million in new loans in progress,” Hayes noted.
Marketable securities increased to $191.2 million, an increase of $50 million over the prior year balance. Total deposits increased by $124.8 million to $1.003 billion, an increase of 14.22% from $877.8 million a year ago, with a notable and continued expansion of core deposits created by new customer acquisition and cash generated by government stimulus programs.
Net income for the year ended December 31, 2021 was $9.88 million, an increase of 22.91% from $8.04 million for 2020. The increase reflects the both the expansion of net interest income, up 13.45% over the previous year, and non-interest income, which increased 12.08% overall.
“The expansion of net interest income benefited from the continued decline in interest expense on deposits”, said Hayes. “The strong increase in non-interest income is attributable to the increase in the market value of the equity portfolio of $262,000, compared to losses of $313,000 in 2020, and the addition of income agency business resulting from the acquisition of Sausman Insurance Agency of Mifflintown. Net income was also positively impacted by gains on residential mortgage sales and lower contribution to loan loss reserve as overall credit quality measures remain at excellent levels.
Non-interest expense increased year-over-year by $3.13 million, or 10.59%, to $32.67 million as of December 31, 2021, from $29.5 million. dollars the previous year. The increase partly reflects higher salaries and benefits associated with additions to the Kish team, as well as occupancy charges related to the opening of the new Kish Innovation Center. Data processing expenses for 2021 decreased to $1.9 million from $2.2 million in 2020, an improvement of 12.74%. The lower costs are the result of a basic conversion completed in 2020. All other expense categories were well controlled compared to the previous year.
The Board of Directors has declared an increased quarterly dividend of 32 cents per share, payable January 31, 2022, to shareholders of record as of January 14, 2022. This is an increase of 10.3% over to 29 cents per share the previous quarter. Return on equity remained strong at 14.08% compared to 12.86% the previous year.
Hayes noted that Kish was also happy to take advantage of favorable market conditions with the issuance of $20 million of subordinated debt during the second quarter, stating, “This issuance allowed for the repayment of higher cost debt and provides additional capital flexibility to the holding company to support future growth.”
Hayes concluded that while the challenges created by the ongoing COVID-19 pandemic continue, Kish has remained vigilant while maintaining a steady focus on the company’s long-term strategic priorities.