Mission To achieve sustained success through an unwavering focus on - - PowerPoint PPT Presentation

Mission

To achieve sustained success through an unwavering focus

• n fulfilling our clients’ financial needs.

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Class 1 Directors

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CLASS 1 DIRECTORS WHOSE TERMS EXPIRE IN 2020 Name Age Principal Occupation Director of Corporation/ Bank Since Eric J. Barron 68 President, The Pennsylvania State University 2018 William L. Dancy 73 Retired, President and Owner, J. M. Young & Sons, Inc. 2003/2003 Gregory T. Hayes 43 President and Chief Operating Officer, Kish Bank and Kish Bancorp, Inc. 2019/2018 Paul G. Howes 65 Executive Vice President, Translatum Medicus Inc. 2014/2013 Paul H. Silvis 65 Founder, President and Head Coach, SilcoTek Corporation 2015/2015

• William P. Hayes
• William S. Lake
• Edward A. Friedman
• Frances V

. Vaughn

Class 2 and 3 Directors

• James J. Lakso
• Spyros A. Degleris
• George V

. Woskob

• Kathleen L. Rhine

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Second Order of Business

• Amendment to Restricted Stock Plan of 1988

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2019 Review

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Strong Board

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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.

Executive Leadership

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William P. Hayes Chairman & Chief Executive Officer

• 43 years with Kish
• Past Chair of PA

Bankers Association

• Has grown Kish from

$28 million to $918 million in assets in time as CEO

Robert S. McMinn, Esq. Executive Vice President, General Counsel

• 17 years with Kish
• Extensive background

in law and executive management

Mark J. Cvrkel Executive Vice President, Chief Financial Officer

• 4 years with Kish
• Extensive executive

experience at banks with assets in excess

• f $1 billion
• Member of the PA

Bankers Association 40-Year Club

Peter D. Collins Executive Vice President, Chief Credit Officer

• 6 years with Kish
• 38 years in banking

industry

• Extensive

management experience at banks ranging from $3 billion to $100 billion in assets

Richard A. Sarfert Executive Vice President, Chief Lending Officer

• 4 years with Kish
• 30+ years in the

financial services industry focused on commercial lending

Suzanne M. White Senior Vice President, Human Resources & Development Director

• 13 years with Kish
• Member of the PA

Bankers Association Professional Development Committee

Gregory T. Hayes President & Chief Operating Officer

• 14 years with Kish
• Member of PA

Bankers Association Board of Directors

• Member of Summit

Technology Group Board of Directors

• Drives technological

innovation at Kish

2019 Highlights

• Sustained Growth
• Earnings Performance across All Business Units
• Market Share Gains
• High Quality Balance Sheet
• Prudent Capital Management and Return on Equity
• Twin Rails Approach to Innovation and Transformation
• Insurance Agency Acquisition
• Preparedness

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Sustained Growth Over Time

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Total Assets ($ in millions)

$557 $560 $558 $630 $660 $697 $725 $811 $851 $918 $500 $550 $600 $650 $700 $750 $800 $850 $900 $950 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Total Gross Loans ($ in millions)

$374 $371 $358 $387 $420 $452 $496 $576 $637 $690 $300 $350 $400 $450 $500 $550 $600 $650 $700 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Total Deposits ($ in millions)

$446 $455 $460 $494 $494 $509 $543 $562 $654 $682 $710 $350 $400 $450 $500 $550 $600 $650 $700 $750 2010 2011 2012 2013 2013 2014 2015 2016 2017 2018 2019

Asset Quality

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Loan Delinquency (% of total loans) Net Charge-Offs / Average Loans Reserves / Gross Loans

1.61% 2.11% 1.31% 1.26% 0.94% 0.22% 0.06% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 2013 2014 2015 2016 2017 2018 2019 KISB Peers¹ 0.01% 0.05% 0.11% 0.06% 0.17% 0.00%

• 0.07%
• 0.10%
• 0.05%

0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 2013 2014 2015 2016 2017 2018 2019 KISB Peers¹ 1.53% 1.43% 1.27% 1.22% 0.99% 1.04% 1.09% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2013 2014 2015 2016 2017 2018 2019 KISB Peers¹

Mifflin

• 9 locations
• Ranked #1 with 43.66% of deposit market share

Huntingdon

• 3 locations
• Ranked #3 with 21.58% of deposit market share

Centre

• 4 locations
• Ranked #6 with 6.21% of deposit market share
• Ranked #1 among community banks

Markets

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Data as of June 30, 2019 Source: FDIC

County Market Share Rank Deposits in Market ($000) Market Share (%) Total Market ($000)

Mifflin, PA 1 347,172 43.66% 795,209 Huntingdon, PA 3 133,987 21.58% 620,935 Centre, PA 6 218,799 6.21% 3,462,130

Deposit Market Share

Capital Summary

• Quality
• Appropriate leverage
• Retained earnings
• Performance that engenders trust
• Risk Management

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Financial data as of December 31, 2019

9.70% 9.54% 8.89% 8.54% 7.45% 10.71% 11.56% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 2013 2014 2015 2016 2017 2018 2019 KISB Peers¹

Return on Equity

107.71% 99.70% 107.70% 111.00% 136.20% 143.60% 125.30% 0% 50% 100% 150% 200% 250% 2013 2014 2015 2016 2017 2018 2019 KISB Peers¹

Price/Tangible Book

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1 Includes public banks in PA with assets between $500 million and $1 billion.

Source: SNL Financial

Profitability

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Net Income ($ in thousands) Net Interest Income ($ in thousands) Net Interest Margin

4,217 4,359 4,494 4,617 4,140 6,030 7,007 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2013 2014 2015 2016 2017 2018 2019 17,537 18,630 19,661 20,868 23,101 25,757 27,538 5,000 10,000 15,000 20,000 25,000 30,000 2013 2014 2015 2016 2017 2018 2019 3.26% 3.27% 3.29% 3.31% 3.35% 3.41% 3.40% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 2013 2014 2015 2016 2017 2018 2019

• Bank and Non-Bank Business Revenues

– Diversified sources of revenue – Wealth management

• 2019 revenue of $1.6 million up 8.34% over 2018

– Kish Insurance recurring revenue

• 2019 revenue of $1.2 million up 8.70%1 over 2018

– Kish Travel

• 2019 revenue of $371 thousand up 19.31% over 2018

– Kish Benefits Consulting

• 2019 revenue of $585 thousand up 23.48% over 2018

– Mortgage Banking

• 2019 non-interest income of $1.2 million up 36.5%
• ver 2018

Bank & Non-Bank Fee Income Expansion

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1 Excludes contingency income

6,460 6,492 6,748 7,096 6,423 7,440 8,502 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2013 2014 2015 2016 2017 2018 2019

Non-Interest Income ($ in thousands)

2020 to 2022 Strategic Plan

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• Expanding Team Capacity

– We will achieve a high performing team through a focus on elevating knowledge.

• Increasing Client Intimacy

– We will achieve a higher level of customer intimacy to better serve them.

• Fostering Community Well-Being

– We will understand the needs of our communities and contribute to their sustainability and well-being.

2020 Areas of Strategic Focus

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• Brand Strategy

– We will execute on the evolution of the Kish Brand as the market leader in banking, Insurance, Wealth, Benefits Consulting, and Travel.

• Growth Strategy

– We will execute our growth strategy that will double the size of the organization in 5 years, well beyond $1 Billion in total assets.

• Digital Strategy

– We will continue to innovate along the twin rails of Digital and Traditional delivery beyond our Vision for Kish 2020.

Existing Strategies

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A Vision for Kish 2020 – Update

Kish Innovation

• Kish Core Transformation
• Kish Innovation Center
• Kish Technology Modernization

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• Simplified Solutions

– New banking solutions that are simplified and powerful

• Digital Tools

– Digital banking access to do more, anytime, anywhere

• Empowered People

– Making Kish better, to better serve you

Kish Core Transformation

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Kish Innovation Center

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• Human Side of Innovation

– Empowering people through a focus

• n quality and development
• Scalability of Growth

– The foundation of our ability to do more with less

• Branch of the Future & Call Center

– Digital client support for the future of Kish

Kish Technology Innovation

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• Connectivity as a foundation

– SDWAN architecture with 10X current speeds and redundancy

• Best-in-class Information Security

– Real-time cyber monitoring program

• Cloud-based solutions

– Scalable phone and computing solutions that expand our ability to deliver solutions

COVID-19 Impact

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• PPP loans
• Mortgage originations
• Commercial and mortgage loan deferrals

Fast Response

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Shareholder Focus

• Strong organic revenue growth and scalable infrastructure leading to double digit growth

in EPS and return on shareholder equity

• Net income of $7.0 million in 2019 compared to $4.4 million in 2014

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• Earnings per share $2.80 in 2019 compared to $1.82 in 2014

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• Market Valuation of 125.3% of TBV in 2019 compared to 99.7% in 2014

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• Consistent dividend expansion with a current yield of ~3.6%
• Share price of $30.75 in 2019 increased 59% compared to $19.33 in 2014

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1 For comparability, per share data for 2014 has been adjusted to reflect the 2-for-1 stock split in 2018.

Why Invest in Kish Bancorp?

History of Strong Growth, Performance, and Innovation

• A market leader in Central Pennsylvania with rapidly expanding market share
• Average annual return on equity of 9.51% since 1990
• Earnings growth in last two years of 16.2% and 45.0% respectively
• First PA bank with insurance and travel companies

Excellent Growth Potential

• Major presence and rapidly growing in Centre County
• #1 among community banks in Centre County market
• 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”

Sophisticated and Distinctive Alternative to Other Providers

• A focus on small businesses, professionals, high net worth segments, non-profit organizations
• 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,

insurance, and employee benefits consulting

Focused on the Future: Technology and Innovation

• Continuous investment in technology to enhance delivery of services and advance Kish’s ability to compete

in a digital environment

• Construction of Kish Innovation Center to be completed in 2020—designed to support Kish’s long-term

sustainability through an enhanced capacity for training, collaboration, and innovation

• Transformation of network, IT infrastructure, and core banking partner to take place in 2020

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1 Data as of December 31, 2019

Core Philosophy

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“We believe that we can make the lives of those around us—our employees, our clients, and our communities—better.”

Questions?

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Voting Results

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