Kish Bancorp, Inc. Completes $35.0 Million Subordinated Debt Offering

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STATE COLLEGE, Pa.--(BUSINESS WIRE)-- Kish Bancorp, Inc. (OTCQX: KISB) (“Kish” or the “Company”), parent company of Kish Bank, today announced the completion of a private placement of $35.0 million in aggregate principal amount of 6.25% Fixed-to-Floating Rate Subordinated Unsecured Notes due 2036 (the “Notes”) to various institutional and accredited investors (the “Offering”). Strong investor demand drove the Offering from its initial $25.0 million target to $35.0 million. The Company intends to utilize the net proceeds of the Offering to redeem its 2021 subordinated notes, to repay other borrowings at the Holding Company, and for general corporate purposes.

“The successful completion of this subordinated debt offering on favorable terms reflects the strength of our franchise and the confidence investors have placed in Kish,” stated Gregory T. Hayes, President and Chief Executive Officer. “This debt offering meaningfully strengthens our already strong capital position and gives us the financial flexibility to continue to grow our business, pursuing our long-term strategies and delivering value to our shareholders, while taking advantage of one of the most cost-effective vehicles available for raising regulatory capital.”

The Notes have been structured to qualify as Tier 2 capital for the Company for regulatory purposes and will bear a fixed interest rate of 6.25% until June 1, 2031, after which time until maturity on June 1, 2036, the interest rate will reset quarterly to an annual floating rate equal to three month term SOFR (Secured Overnight Financing Rate) plus 223 basis points. The Notes are redeemable by the Company at its option, in whole or in part, on or after June 1, 2031. Any redemption will be at a redemption price equal to 100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest. The Notes are not subject to redemption at the option of the holders.

Brean Capital, LLC served as the sole placement agent for the offering. Barley Snyder LLP served as legal counsel to Kish, and Pillar + Aught served as legal counsel to Brean.

The offer and sale of the Notes has not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy, any security, nor shall there be any sale in any jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The indebtedness evidenced by the unsecured Notes is not a deposit and is not insured by the Federal Deposit Insurance Corporation or any other government agency or fund.

About Kish Bancorp, Inc.

Kish Bancorp, Inc. is a diversified financial services corporation headquartered in Belleville, PA, with executive offices in State College, PA and an Innovation Center in Reedsville, PA. Kish Bank, a subsidiary of Kish Bancorp, Inc., operates 20 locations serving Centre, Mifflin, Huntingdon, Blair, and Juniata counties in Pennsylvania, as well as 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. KISB is the OTCQX stock ticker symbol for Kish Bancorp, Inc. For additional information, please visit ir.kishbancorp.com or otcmarkets.com/stock/KISB.

Forward Looking Statements

Certain statements regarding Kish Bancorp, Inc. set forth in this document and any related materials, as well as in related oral and written presentations, contain forward-looking information and speak only as of the date of such statement. You can identify these statements by the fact that they use words such as “will,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,” “forecast” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance or business plans and prospects. This forward-looking information is subject to numerous material risks, uncertainties and assumptions, certain of which are beyond the control of Kish Bancorp, including the impact of general economic conditions, industry conditions, competition from other industry participants, the effect of federal, state and local regulation on financial institutions, market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the material assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and actual results, performance or achievement could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that Kish Bancorp will derive therefrom. Kish Bancorp disclaims any intention or obligation to update or revise any forward-looking information, whether, because of new information, future events or otherwise, except as required by applicable securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260527100296/en/

Gregory T. Hayes, President and Chief Executive Officer, 814-325-7530

Source: Kish Bancorp, Inc.