2019 Journal of Community Bank Case Studies

Juniata College

FIRST PLACE:

the loan book, in dollar terms, for each major loan category and indicates the YOY increase (or decrease) in these figures since 2014. Over the 5-year period, the major growth categories have been real estate loans and commercial lending. Asset Growth Kish has seen a significant increase in its asset base since 2014, driven solely by organic growth. In the 5-year period to 2018, assets rose by 29% — from $658 million to $848.5 million, bringing the bank close to the $1 billion threshold, which it expects to exceed in the not too distant future. This increase corresponds with a relatively consistent rise in Kish’s loan portfolio, which

has risen by 52% in the same period. As alluded to, the predominant growth sectors in the bank’s loan portfolio are real estate and commercial loans, which have grown by just over $200 million since 2014 – almost the same as the overall asset increase. Kish’s YOY asset growth is indicated in the table below, together with comparatives for PG5. It can be noted that on a cumulative basis Kish’s growth is marginally ahead of PG5, however, it lagged behind for all years except 2017 which saw Kish almost double the growth in assets as compared to PG5. This can be attributed to an upsurge in Kish’s real estate and commercial loans as evidenced in the subsequent figure.

Breakdown of Kish’s Total Assets in $’000’s

Other

Real Estate Loans

Commercial Loans

$287,067

$314,003

$56,990

2014

$302,897

$323,147

$68,884

2015

$286,320

$357,077

$79,508

2016

2017 Year Kish’s total assets (in $’000’s) and YOY % increase compared to PG5 2018 $425,093 $481,749 $287,293 $265,807

$95,933

$100,923

Total increase $190,419 31.11%

2014

2015

2016

2017

2018

$658,060 4.69%

$694,928 5.60%

$722,905 4.03%

$808,319 11.82%

$848,479 4.97%

Kish

Peer Group 5

6.49% 6.34% 6.35% 6.00% 5.62% 30.80%

11