Kish Bancorp, Inc. Reports Net Income of $3.6 Million, or $1.21 Per Share, in the First Quarter of 2025

STATE COLLEGE, Pa.--(BUSINESS WIRE)-- Kish Bancorp, Inc. (OTCQX: KISB) (“Kish” or the “Company”), parent company of Kish Bank, reported net income of $3.6 million, or $1.21 per share, for the first quarter of 2025, compared to $4.1 million, or $1.39 per share, for the fourth quarter of 2024, and $3.1 million, or $1.06 per share, for the first quarter of 2024. All results are unaudited.

Results for the first quarter of 2025 included a $159 thousand provision for credit losses, compared to a $142 thousand negative provision expense in the fourth quarter of 2024, and a $113 thousand provision expense in the first quarter of 2024. The increase to the provision for credit losses during the first quarter of 2025 was primarily due to expansion in the commercial loan portfolio, and not due to any deterioration in loan quality, which remains at extraordinarily strong levels.

“Our first quarter performance was an excellent start to the year, highlighted by exceptional loan and deposit growth and strong operating results,” stated William P. Hayes, Executive Chairman. “The increase in net interest income during the first quarter compared to the year ago quarter was primarily driven by new loan growth. As anticipated, our net interest margin expanded during the first quarter, as our cost of funds adjusted downward driven by lower competitive market rates, and more than offset the decline in earning asset yields. As we celebrate a significant milestone in 2025—the 125^th anniversary of Kish Bank—we are excited about the future. We are confident that our sustained focus on the client and the values of service, performance, trust and community will continue to differentiate Kish and deliver for our shareholders as we navigate through new opportunities and challenges in the year ahead.”

“We continue to look for innovative, cost-effective ways to reach our customers and grow our business,” said Gregory T. Hayes, President and CEO. “In 2024 we launched ATM + Live Banker, our newest transformative banking solution, now available at 13 of our locations across Centre, Blair, Huntingdon, Mifflin, and Juniata Counties, with more on the way. ATM + Live Banker is a convenient banking solution that allows customers to perform full-service transactions through the ATM during expanded hours, assisted via video by a live, local Kish Banker. Our sustained financial success has enabled us to continue our investment in innovations such as ATM + Live Banker, ensuring that we will remain at the forefront of community banking for years to come.”

First Quarter 2025 Financial Highlights:

• Total assets increased $221.7 million, or 14.3%, to $1.8 billion at March 31, 2025, compared to $1.5 billion a year ago.
• Total loans grew by $239.8 million, or 19.1%, year over year to $1.5 billion, compared to $1.3 billion a year ago.
• Total deposits increased $104.1 million year over year, or 8.7%, to $1.3 billion as Kish Bank continued to attract new client relationships.
• First quarter net interest income, before provision, increased $1.6 million, or 14.4%, compared to the first quarter a year ago.
• Noninterest income increased $158 thousand, or 5.4%, compared to the year ago quarter.
• First quarter net interest margin expanded eight basis points from the first quarter a year ago to 3.26%.
• Continued strong first quarter ROE of 11.71% and ROA of 0.84%.
• Tangible book value per share increased 11.9% to $35.65, compared to $31.85 a year ago.
• Paid a $0.39 per share quarterly cash dividend on January 31, 2025, to shareholders of record as of January 15, 2025.
• At March 31, 2025, Kish Bank continued to exceed regulatory well-capitalized requirements with a Tier 1 leverage ratio of 9.05%, a Tier 1 capital ratio of 9.84% and a Total risk-based capital ratio of 10.52%.

Balance Sheet

“Loan growth had another strong quarter, with total loans outstanding up by $239.8 million, or 19.1%, year over year, and up $71.2 million, or 5.0%, over the prior quarter,” said President and CEO Hayes. “Year-over-year loan growth was spread out across several loan categories with the largest gains driven by increases in construction loans of $34.2 million, or 19.9%, and multifamily loans of $63.5 million, or 33.8%.”

Total assets ended the quarter at $1.8 billion, an increase of $221.7 million, or 14.3%, compared to $1.5 billion as of March 31, 2024. Investment securities decreased to $164.3 million, a decrease of $20.9 million from March 31, 2024. Average earning assets increased to $1.6 billion in the first quarter of 2025, compared to $1.4 billion in the first quarter of 2024. The average yield on interest-earning assets was 5.99% in the first quarter of 2025, up three basis points from 5.96% in the first quarter a year ago.

Total deposits grew by $104.1 million year over year to $1.3 billion, an increase of 8.7% from $1.2 billion a year ago. At March 31, 2025, noninterest-bearing demand deposit accounts decreased 0.7% compared to a year ago, while interest-bearing deposits increased 10.4% compared to a year ago. Brokered deposits decreased $3.5 million during the first quarter compared to the preceding quarter to $86.7 million at March 31, 2025. The cost of total deposits was 2.57% in the first quarter of 2025, compared to 2.55% in the first quarter of 2024.

Stockholders’ equity increased 13.7% to $110.0 million at March 31, 2025, compared to $96.8 million a year earlier. At March 31, 2025, the Company’s tangible book value increased 11.9% to $35.65 per share, compared to $31.85 at March 31, 2024.

Kish Bank continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with a Tier 1 leverage ratio of 9.05%, a Tier 1 capital ratio of 9.84%, and a Total capital ratio of 10.52% at March 31, 2025.

Operating Results

In the first quarter of 2025, Kish generated a return on average common equity of 11.71% and a return on average assets of 0.84%, compared to 10.84% and 0.80%, respectively, in the first quarter a year ago.

Net interest income, before the provision for credit losses, increased 14.4% to $13.1 million in the first quarter of 2025, compared to $11.4 million in the first quarter a year ago, indicating a well-balanced net interest margin. The Company’s net interest margin was 3.26% in the first quarter of 2025, compared to 3.23% in the preceding quarter and 3.18% in the first quarter of 2024. The resulting relative stability in the net interest margin and managing of interest rate risk is the result of effective balance sheet management strategies, including Kish’s balance sheet hedging program, which creates additional balance sheet flexibility.

Primarily due to loan growth, the Company recorded a $159 thousand provision for credit losses in the first quarter of 2025. This compared to a $142 thousand reversal to its provision for credit losses in the fourth quarter of 2024, and a $113 thousand provision for credit losses in the first quarter of 2024.

First quarter noninterest income increased 5.4% to $3.1 million, compared to $2.9 million in the first quarter a year ago. The increase was led by higher service fees on deposit accounts as well as strong results from Kish’s Insurance Division.

Noninterest expense increased $1.1 million, or 10.0%, to $11.6 million in the first quarter of 2025, compared to $10.5 million in the first quarter of 2024. Team expansion remains the primary driver of higher salary expense, coupled with inflationary pressures on compensation expense. The increase in operating expenses also reflects the Company’s strategic investment in technology enhancements and the training and education of its employees; all crucial fundamentals in supporting and expanding customer relationships.

The efficiency ratio for the first quarter of 2025 was 72.7%, compared to 69.3% for the preceding quarter and 74.2% for the first quarter of 2024. The efficiency ratio includes the Company’s non-banking units, which operate at higher expense levels than Kish Bank.

In the first quarter of 2025, the Company recorded $760 thousand in state and federal income tax expense for an effective tax rate of 17.4%, compared to $585 thousand, or 15.9%, in the first quarter a year ago.

Credit Quality

The allowance for credit losses represented 1,582.8% of nonperforming loans at March 31, 2025, compared to 1,415.1% a year earlier. Nonperforming loans were $599 thousand, or 0.04% of total loans, at March 31, 2025, compared to $670 thousand, or 0.05% of total loans, a year earlier.

Net loan recoveries totaled $2 thousand in the first quarter of 2025, compared to $20 thousand in net loan charge-offs in the first quarter a year ago. The allowance for credit losses was $9.5 million, or 0.63% of total loans, at March 31, 2025, compared to $7.6 million, or 0.60% of total loans, a year ago.

Dividend

On April 1, 2025, the Board of Directors declared a quarterly dividend in the amount of $0.39 per share, payable April 30, 2025, to shareholders of record as of April 15, 2025, which was unchanged from the prior quarter. The current dividend represents an annualized yield of 4.98% based on recent market prices. Kish has paid uninterrupted dividends since 1987, with a dividend increase in 11 of the last 12 years.

Recent Events

During the fourth quarter of 2024, the Company completed the issuance of $10.0 million in term debt with a $3.0 million line through a private placement offering. The Company intends to use the net proceeds from the offering for general corporate purposes, including but not limited to the redemption of the Company’s outstanding $5.0 million floating debt line, which was higher in cost.

About Kish Bancorp, Inc.

Kish Bancorp, Inc. is a diversified financial services corporation headquartered in Belleville, PA with executive offices in State College and an Innovation Center in Reedsville. Kish Bank, a subsidiary of Kish Bancorp, Inc., operates 19 locations serving Centre, Mifflin, Huntingdon, Blair, and Juniata counties, and 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.

In June of 2024, Kish Bancorp, Inc. was ranked 38^th on American Banker Magazine’s list of Top 100 Publicly Traded Community Banks and Thrifts based on three-year average return on equity as of December 31, 2023. The rankings are derived from all publicly traded banks and thrifts in the U.S. with less than $2 billion in assets.

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.

Consolidated Balance Sheet
(Unaudited; in thousands)
	Mar. 31, 2025				Dec. 31, 2024				Mar. 31, 2024
ASSETS
Cash and due from banks	$	14,333			$	13,920			$	9,769
Interest-bearing deposits with other institutions		4,796				3,297				8,737
Cash and cash equivalents		19,129				17,217				18,506
Certificates of deposit on other financial institutions		-				-				245
Investment securities available for sale		152,592				151,328				171,744
Equity securities		2,298				2,378				2,452
Investment securities held to maturity		9,405				9,406				11,003
Loans held for sale		1,583				786				168
Loans		1,495,235				1,424,000				1,255,393
Less allowance for credit losses		9,481				8,906				7,580
Net Loans		1,485,754				1,415,094				1,247,813
Premises and equipment		28,163				27,534				27,118
Goodwill		3,512				3,512				3,561
Regulatory stock		11,379				8,330				9,631
Bank-owned life insurance		25,213				25,032				24,480
Accrued interest and other assets		32,279				31,933				32,870
TOTAL ASSETS	$	1,771,307			$	1,692,550			$	1,549,591
LIABILITIES
Noninterest-bearing deposits		173,197				171,361				174,500
Interest-bearing deposits		1,123,020				1,126,709				1,017,586
Total Deposits		1,296,217				1,298,070				1,192,086
Borrowings		331,801				252,635				222,111
Accrued interest and other liabilities		33,254				35,734				38,629
TOTAL LIABILITIES		1,661,272				1,586,439				1,452,826
STOCKHOLDERS' EQUITY
Common stock, $0.50 per value; 8,000,000 shares authorized, 3,022,127, 3,022,127 and 2,885,941 issued		1,512				1,511				1,508
Additional paid-in capital		13,062				12,840				13,905
Retained earnings		109,431				106,979				98,888
Accumulated other comprehensive income		(12,590	)			(13,623	)			(13,988	)
Treasury stock, at cost (44,492, 52,608 and 78,376 shares)		(1,380	)			(1,596	)			(3,548	)
TOTAL STOCKHOLDERS' EQUITY		110,035				106,111				96,765
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,771,307			$	1,692,550			$	1,549,591

CONSOLIDATED STATEMENT OF INCOME
(Unaudited; in thousands)
		Three Months Ended
		Mar. 31, 2025				Dec. 31, 2024				Mar. 31, 2024
INTEREST AND DIVIDEND INCOME
Interest and fees on loans:
Taxable		$	22,519			$	22,375			$	19,521
Exempt from federal income tax			231				264				256
Investment securities
Taxable			963				1,043				1,266
Exempt from federal income tax			58				59				53
Interest-bearing deposits with other institutions			59				81				89
Other dividend income			242				220				252
TOTAL INTEREST AND DIVIDEND INCOME			24,072				24,042				21,437
INTEREST EXPENSE
Deposits			8,230				8,828				7,381
Borrowings			2,792				2,420				2,649
TOTAL INTEREST EXPENSE			11,022				11,248				10,030
NET INTEREST INCOME			13,050				12,794				11,407
Provision for credit losses			159				(142	)			113
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES			12,891				12,936				11,294
NONINTEREST INCOME
Service fees on deposit accounts			659				673				583
Investment security gains, net			-				392				-
Equity securities (losses) gains, net			(79	)			(131	)			(149	)
Gain on sale of loans, net			86				130				74
Earnings on Bank-owned life insurance			179				183				176
Insurance commissions			990				680				934
Travel agency commissions			8				73				19
Wealth management			910				820				940
Benefits consulting			170				155				145
Other			158				329				201
TOTAL NONINTEREST INCOME			3,081				3,304				2,923
NONINTEREST EXPENSE
Salaries and employee benefits			6,949				6,490				6,431
Occupancy and equipment			1,091				1,050				1,007
Data processing			1,382				1,259				1,137
Professional fees			188				235				150
Advertising			145				110				116
Federal deposit insurance			378				343				292
Other			1,470				1,760				1,414
TOTAL NONINTEREST EXPENSE			11,603				11,247				10,547
INCOME BEFORE INCOME TAXES			4,369				4,993				3,670
Income taxes			760				873				585
NET INCOME		$	3,609			$	4,120			$	3,085
Earnings per share		$	1.21			$	1.39			$	1.06

ADDITIONAL FINANCIAL INFORMATION
(Dollars and shares in thousands except per share amounts)(Unaudited)
		Three Months Ended
		Mar. 31, 2025				Dec. 31, 2024				Mar. 31, 2024
PERFORMANCE MEASURES AND RATIOS
Return on average common equity			11.71	%			13.56	%			10.84	%
Return on average assets			0.84	%			0.97	%			0.80	%
Efficiency ratio			72.65	%			69.25	%			74.19	%
Net interest margin			3.26	%			3.23	%			3.18	%
		Three Months Ended
		Mar. 31, 2025				Dec. 31, 2024				Mar. 31, 2024
AVERAGE BALANCES
Average assets		$	1,722,201			$	1,671,984			$	1,538,898
Average earning assets			1,632,737				1,583,918				1,443,705
Average total loans			1,454,787				1,398,480				1,245,749
Average deposits			1,299,717				1,295,387				1,165,442
Average common equity			118,480				115,103				105,932
		Mar. 31, 2025				Dec. 31, 2024				Mar. 31, 2024
EQUITY ANALYSIS
Total common equity		$	118,073			$	116,751			$	107,977
Common stock outstanding			3,023,690				3,022,127				3,015,877
Book value per share		$	36.39			$	35.98			$	33.30
Tangible book value per share		$	35.65			$	34.58			$	31.85
ASSET QUALITY
Nonaccrual loans		$	503			$	521			$	567
Loans 90 days past due and still accruing			96				201				103
Total nonperforming loans		$	599			$	722			$	670
Other real estate owned and other repossessed assets			-				-				-
Total nonperforming assets		$	599			$	722			$	670
Nonperforming loans/portfolio loans			0.04	%			0.05	%			0.05	%
Nonperforming assets/assets			0.03	%			0.04	%			0.04	%
Allowance for credit losses		$	9,481			$	8,906			$	7,580
Allowance for credit losses/portfolio loans			0.63	%			0.63	%			0.60	%
Allowance for credit losses/nonperforming loans			1582.80	%			1233.52	%			1415.07	%
Net loan (recoveries) charge-offs for the quarter		$	(2	)		$	(262	)		$	20
		Mar. 31, 2025				Dec. 31, 2024				Mar. 31, 2024
KISH BANK
Tier 1 leverage ratio			9.05	%			9.02	%			8.96	%
Tier 1 capital ratio			9.84	%			9.92	%			10.00	%
Total capital ratio			10.52	%			10.62	%			10.68	%
		Mar. 31, 2025				Dec. 31, 2024				Mar. 31, 2024
INTEREST SPREAD ANALYSIS
Yield on total loans			6.36	%			6.46	%			6.40	%
Yield on investments			2.58	%			2.60	%			2.84	%
Yield on interest earning deposits			4.34	%			5.02	%			8.08	%
Yield on earning assets			5.99	%			6.06	%			5.96	%
Cost of interest-bearing deposits			2.95	%			3.12	%			2.97	%
Cost of total deposits			2.57	%			2.71	%			2.55	%
Cost of borrowings			4.05	%			4.07	%			4.42	%
Cost of interest-bearing liabilities			3.17	%			3.29	%			3.25	%
Cost of funds			2.83	%			2.92	%			2.87	%

 

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Mark J. Cvrkel, EVP, Treasurer and Chief Financial Officer, 814-325-7346

Source: Kish Bancorp, Inc.