2019 Journal of Community Bank Case Studies

Juniata College

FIRST PLACE:

Kish management team who appreciate the special niche which community banks serve and are fully invested in establishing personal relationships with its customers. Indeed, it is these relationships and local knowledge that allow the bank to successfully lend to smaller businesses, many of whom would not meet the exacting metrics of the larger banks. It is the intimacy of the client relationship which sets Kish apart from the competition and has enabled it to succeed in times of economic downturn and uncertainty. Additionally, Kish is committed to giving back to the communities in which it operates. This is evident in many ways from the monetary donations it makes to local organizations and charities to the importance it places on the Kish team being actively involved in their communities. The latter is exemplified by Kish granting employees three days of paid time off to volunteer their time for the betterment of their communities.

is enhanced by the diversity of nonbanking services that it offers to its local communities. Some of this performance can only be seen when looking at the consolidated holding company results of Kish Bancorp, Inc which are not shown in the UBPR data. Kish’s year-over-year (YOY) earnings and growth are shown below, with 2018 earnings increasing by an impressive 46% 1 over the prior year. Chairman and CEO, Mr. Bill Hayes attributes this stellar performance to a combination of factors: an increase in loan volume, continued growth in the economy, a reduction in the tax rate and the long- term strategic focus, over many years, on the diversified services which the company offers. Additionally, the growth in loans could not be achieved without attracting additional core funding which came about as a result of various promotions and Kish’s ‘Expect More’ promise.

Financial Analysis Earnings Performance

Kish’s Net Income ($’000’s)

$8K

$6,928

Through a review of Kish’s Uniform Bank Performance Report (UBPR), the bank has seen strong growth in earnings over the last five years, rising from a baseline of $4.9 million in 2014 to a record $6.8 million in 2018. Kish’s growth was generated organically without acquisition and comes primarily from Kish’s traditional banking activities but

$6K

$5,234

$4,972

$4,908

$4,675

$4K

Income

$2K

$0

2014

2015

2016

2017

2018

Year

1 This can be adjusted downward to 32% when once-off charges to the 2017 financials are eliminated—these charges depressed the 2017 results and arose due to the reduced corporate tax rate announced in the Tax Cuts and Jobs Act 2017.

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