2019 Journal of Community Bank Case Studies

Juniata College

FIRST PLACE:

difficult times, when other banks may be more inclined to ‘cut them loose’. Where many businesses may have floundered, Kish has been there to see them through which reflects its “commitment to go the distance required to help clients reach their goals in ways that are not just smart and successful, but welcoming and hospitable” (Kish Annual Report, 2016). Kish is also very engaged in its local communities, as are members of the Kish team. For example, in response to the Tax Cuts and Jobs Act, Kish announced an expansion of its support for community and charitable organizations through an increase of $50,000, and also provides additional annual leave to its team when they volunteer their time for the betterment of their communities. These again emphasize Kish’s philosophy—in the words of Mr. Bill Hayes, “we believe in our hearts that we can make the lives of our team members, our clients, and our communities better.” Conclusion Our brief for this paper was to consider Dodd- Frank’s impact on Kish, as well as the impact of the subsequent rollback provisions contained in the 2018 EGRRCPA legislation. Our findings suggest that Dodd-Frank imposed many additional regulatory burdens on Kish which resulted in increased expenses, the requirement to maintain a higher capital ratio, and reduced the banks capacity to direct resources to activities which would benefit its communities. Furthermore, while EGRRCPA has the potential to benefit some banks, Kish’s financial benefits are limited. Kish happens to fall within a size

range where it is neither small enough nor large enough to reap the rewards the legislation can offer. Consequently, Kish would like to see more tailored regulations relative to institution size and the complexity of transactions and services offered, which is absent from the current legislation. As Hassan and Hippler assert, community banks play a vital role in providing capital to small businesses and rural communities. As such, the importance from an economic standpoint of ensuring the continuation of healthy community banks is in everyone’s interest. Though there are many factors which may impact community banks going forward, including: the potential economic slowdown, CECL requirements, and a potential increase in the Basel III ratio, we believe that Kish, with its diversification strategy and forward focused management team, is well positioned to continue to prosper into the future.

Kish happens to fall within a size range where it is neither small enough nor large enough to reap the rewards the legislation can offer.

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