07/15/2021 | Press release | Distributed by Public on 07/15/2021 15:26
State College, Pennsylvania (KISB) - July 15, 2021 - William P. Hayes, Chairman and CEO of Kish Bancorp, Inc., has announced unaudited financial results for the six-month period ending June 30, 2021. Highlights for the first half of 2021 include:
Kish Bancorp's total assets ended the period at $1.159 billion, an increase of 10.58% compared to total assets of $1.048 billion a year ago. Total loans outstanding grew year over year by $71.3 million, or 9.08%, to $856.8 million. A total of $35 million in loans was originated to local businesses in 2021 as part of the third round of the Paycheck Protection Program (PPP), which was offset by the forgiveness of $38.2 million of 2020 PPP loans during the first half of 2021.
'The strongest contributor to loan growth in the first half of the year was our northeastern Ohio lending team, who produced over $50 million in outstanding loans,' said Hayes, noting Kish Bank's continued successful expansion into the state.
Total deposits grew by $109 million to $928.8 million, a 13.29% increase from $819.8 million a year ago, with a continued notable expansion in core deposits created by new customer acquisition and the liquidity generated by continued government stimulus programs. Investment securities grew to $177.5 million, a $38.9 million increase over last year's balance. Borrowings increased marginally to $137.1 million, compared to $136 million a year ago.
Net income for the six-month period was $5.22 million-an increase of $1.60 million, or 44.42%, compared to $3.61 million for the same period in 2020. This increase reflects expansion in both net interest income, up 13.86% over last year, and noninterest income, which increased 35.18% overall.
'The expansion in net interest income benefitted from the continued decline in interest expense on deposits,' said Hayes, continuing, 'The sharp increase in noninterest income is attributable first to the increase in gains on the sale of mortgage loans of $1.367 million in 2021 versus $0.819 million the prior year, and second, to the addition of insurance agency revenue due to the acquisition of the Sausman Insurance Agency. Net income was also positively impacted by market value increases in the equity portfolio and the decline in contribution to the loan loss reserve as overall credit quality metrics remain at excellent levels.'
Noninterest expense increased year over year by $1.6 million, or 11.05%, to $16.4 million, in part reflecting higher salaries and employee benefits associated with additions to the Kish team, as well as occupancy expense related to the opening of the new Kish Innovation Center. Data processing expense decreased 33.52% to $882 thousand, down from $1.3 million the previous year. These lower costs resulted from Kish Bank's core conversion, completed during the second quarter of 2020. All other expense categories remained well controlled.
The Board of Directors declared a quarterly dividend in the amount of $0.29 per share, payable July 30, 2021, to shareholders of record as of July 15, 2021. This is an increase of $0.02 per share from the prior year.
About Kish Bancorp, Inc.
Kish Bancorp, Inc. is a diversified financial services corporation headquartered in Belleville, PA with executive offices in State College. Kish Bank, a subsidiary of Kish Bancorp, Inc., operates eighteen offices and financial centers serving Centre, Mifflin, Huntingdon, Blair, and Juniata counties, and northeastern 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 www.kishbank.com. KISB is the OTC stock ticker symbol for Kish Bancorp, Inc.