Kish Bancorp, Inc. Reports Net Income of $5.2 Million, or $1.72 Per Share, in the Third Quarter of 2025; Highlighted by Loan Growth and Net Interest Margin Expansion

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10/14/2025 - 04:58 PM

STATE COLLEGE, Pa.--(BUSINESS WIRE)-- Kish Bancorp, Inc. (OTCQX: KISB) (“Kish” or the “Company”), parent company of Kish Bank, reported net income of $5.2 million, or $1.72 per share, for the third quarter of 2025, compared to $3.8 million, or $1.28 per share, for the second quarter of 2025, an increase of 34.3% and $4.2 million, or $1.41 per share, for the third quarter of 2024, an increase of 23.6%. For the first nine months of 2025, net income was $12.6 million, or $4.22 per share, compared to $10.4 million, or $3.53 per share, an increase of 21.2% over the nine-month period in 2024. All results are unaudited.

Results for the third quarter of 2025 included a $781 thousand provision for credit losses, compared to a $470 thousand provision expense in the second quarter of 2025, and a $665 thousand provision expense in the third quarter of 2024. The increase to the provision for credit losses during the third quarter of 2025 was largely attributable to growth in the commercial loan portfolio, with loan quality remaining exceptionally strong with no signs of deterioration.

“Kish’s third quarter results reflect the continued momentum across our business, driven by disciplined execution, solid client relationship management, and a focus on long-term value creation,” stated William P. Hayes, Executive Chairman. “Stronger net interest income, largely fueled by new loan growth, drove improved profitability over the prior quarter and the same quarter last year. Additionally, our net interest margin expanded both sequentially and year-over-year, supported by a lower cost of funds as competitive pressures eased, alongside stabilized earning asset yields. We remain confident that our consistent focus on client needs and innovative balance sheet management strategies will continue to differentiate Kish in the marketplace, positioning us well to capture future opportunities and adapt to changing market dynamics.”

“We’ve remained focused on practical, long-term strategies that strengthen our operations and create lasting value for our shareholders,” said Gregory T. Hayes, President and CEO. “As a community bank, our strategic investments in modernizing and adopting smarter technologies are enabling us to better serve our customers and communities with greater efficiency and reliability. At the same time, by expanding and improving our investor outreach, we’re building trust and engagement with our current and prospective shareholders. These combined efforts are driving sustainable, long-term shareholder returns while deepening our impact and creating meaningful value in the local communities we serve.”

Third Quarter 2025 Financial Highlights:

Net income was $5.2 million, or $1.72 per share, for the third quarter of 2025, compared to $3.8 million, or $1.28 per share, for the second quarter of 2025, and increase of 36.8% and $4.2 million, or $1.41 per share, for the third quarter of 2024, an increase of 21.2%.
Total assets increased $269.0 million, or 16.2%, to $1.9 billion at September 30, 2025, compared to $1.7 billion a year ago.
Total loans grew by $277.4 million, or 20.2%, year over year to $1.6 billion, compared to $1.4 billion a year ago.
Total deposits increased $97.1 million year over year, or 7.5%, to $1.4 billion, as Kish Bank continued to expand its client base.
Third quarter net interest income, before provision, increased $2.5 million, or 20.0%, compared to the third quarter a year ago.
Noninterest income increased $323 thousand, or 8.7%, compared to the year ago quarter.
Third quarter net interest margin expanded 13 basis points from the third quarter a year ago to 3.43%.
Continued strong third quarter ROE of 15.80% and ROA of 1.09%.
Tangible book value per share increased 12.7% to $38.38, compared to $34.04 a year ago.
Paid a $0.39 per share quarterly cash dividend on July 31, 2025, to shareholders of record as of July 15, 2025. The Board recently approved an increased dividend of $.40 per share payable on October 31 to shareholders of record on October 15, marking 12 out of the last 13 years of increased annual dividends for Kish Bancorp.
At September 30, 2025, Kish Bank continued to exceed regulatory well-capitalized requirements with a Tier 1 leverage ratio of 8.92%, a Tier 1 capital ratio of 9.79%, and a Total risk-based capital ratio of 10.51%.

Balance Sheet

“Loan growth during the quarter was robust, with total loans outstanding increasing by $277.4 million, or 20.2%, compared to the same period last year, and rising $95.8 million, or 6.2%, over the prior quarter,” said President and CEO Hayes. “Growth was well-distributed across multiple loan categories, with the most notable contributions coming from 1-4 family residential loans, which increased by $24.1 million, or 5.1%; construction loans, which grew by $3.5 million, or 1.6%; multifamily loans, which increased by $23.0 million, or 8.9%; and nonfarm nonresidential loans, which grew by $41.3 million, or 11.2%.”

Total assets ended the quarter at $1.9 billion, an increase of $269.0 million, or 16.2%, compared to $1.7 billion as of September 30, 2024. Investment securities decreased to $170.4 million, a decrease of $12.6 million from September 30, 2024. Average earning assets increased to $1.8 billion in the third quarter of 2025, compared to $1.5 billion in the third quarter of 2024. The average yield on interest-earning assets was 6.14% in the third quarter of 2025, down five basis point from 6.19% in the third quarter a year ago.

Total deposits grew by $97.1 million year over year to $1.4 billion, an increase of 7.5% from $1.3 billion a year ago. At September 30, 2025, noninterest-bearing demand deposit accounts increased 11.3% compared to a year ago, while interest-bearing deposits increased 6.9% compared to a year ago. Brokered deposits increased $1.1 million from the preceding quarter to $96.0 million at September 30, 2025. The cost of total deposits remained unchanged at 2.48% in the third quarter of 2025, compared to the second quarter of 2025, and improved compared to 2.77% in the third quarter of 2024.

Stockholders’ equity increased 13.8% to $118.8 million at September 30, 2025, compared to $104.3 million a year earlier. At September 30, 2025, the Company’s tangible book value increased 12.7% to $38.38 per share, compared to $34.04 at September 30, 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 8.92%, a Tier 1 capital ratio of 9.79%, and a Total capital ratio of 10.51% at September 30, 2025.

Operating Results

Kish generated a return on average common equity of 15.80% and a return on average assets of 1.09% in the third quarter of 2025, compared to 13.89% and 1.01%, respectively, in the third quarter a year ago. Year-to-date, the return on average common equity was 13.26% and return on average assets was 0.93%, compared to 11.77% and 0.87%, respectively, in the same period in 2024.

Net interest income, before the provision for credit losses, increased 20.0% to $15.3 million in the third quarter of 2025, compared to $12.8 million in the third quarter a year ago. In the first nine months of the year, net interest income before the provision for credit losses increased $6.3 million, or 17.4% year over year, reflecting a stable and well-managed net interest margin. The Company’s net interest margin was 3.43% in the third quarter of 2025, compared to 3.36% in the preceding quarter and 3.30% in the third quarter of 2024. The improvement in net interest margin and effective interest rate risk management reflects the success of Kish’s balance sheet strategies, including its hedging program, which enhances overall balance sheet flexibility. In the first nine months of the year, the net interest margin expanded nine basis points to 3.35%, compared to 3.26% in the year-ago period.

Primarily due to loan growth, the Company recorded a $781 thousand provision for credit losses in the third quarter of 2025. This compared to a $470 thousand provision for credit losses in the second quarter of 2025, and a $665 thousand provision for credit losses in the third quarter of 2024.

Kish’s third quarter noninterest income increased 8.7% to $4.0 million, compared to $3.7 million in the third quarter a year ago. Noninterest income for the nine-month period increased by 10.6% compared to the same period in 2024, led by higher service fees on deposit accounts, as well as strong results from Kish’s insurance and wealth management divisions.

Noninterest expense increased $1.5 million, or 14.1%, to $12.2 million in the third quarter of 2025, compared to $10.7 million in the third quarter of 2024. For the first nine months of the year, noninterest expense increased $4.4 million, or 13.7%, to $36.0 million, compared to $31.7 million in the same period in 2024. The increase in salary and benefit expenses continues to be primarily driven by team expansion, alongside broader inflationary impacts on compensation. Additionally, the rise in operating expenses was attributable to purposeful strategic investments in technology infrastructure and employee development, both essential to supporting scalable growth and enhancing customer engagement.

The efficiency ratio for the third quarter of 2025 was 66.0%, compared to 72.5% for the preceding quarter and 67.9% for the third quarter of 2024. Year-to-date, the efficiency ratio was 71.0%, compared to 71.7% in the year ago period. The efficiency ratio includes the Company’s non-banking units, which operate at higher expense levels than Kish Bank.

In the third quarter of 2025, the Company recorded $1.2 million in state and federal income tax expense for an effective tax rate of 18.3%, compared to $896 thousand, or 17.7%, in the third quarter a year ago. In the first nine months of 2025, the Company recorded $2.7 million in state and federal income tax expense for an effective rate of 17.7%, compared to $2.1 million, or 17.0% in the year ago period.

Credit Quality

The allowance for credit losses represented 1,781.2% of nonperforming loans at September 30, 2025, compared to 1,549.9% a year earlier. Nonperforming loans were $605 thousand, or 0.04% of total loans, at September 30, 2025, compared to $680 thousand, or 0.05% of total loans, a year earlier.

Net loan recoveries totaled $90 thousand in the third quarter of 2025, compared to $30 thousand in net loan recoveries in the third quarter a year ago. The allowance for credit losses was $10.8 million, or 0.65% of total loans, at September 30, 2025, compared to $8.7 million, or 0.64% of total loans, a year ago. The increase quarter over quarter included approximately $350 thousand of unallocated reserves.

Dividend

On October 1, 2025, the Board of Directors increased the quarterly dividend to $0.40 per share, payable October 31, 2025, to shareholders of record as of October 15, 2025, which was a 2.5% increase from the prior quarter. The current dividend represents an annualized yield of 4.21% based on recent market prices. Kish Bancorp has paid uninterrupted dividends since its formation in 1987, with a dividend increase in 12 of the last 13 years.

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 19 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.


Consolidated Balance Sheet
(Unaudited; in thousands)

	Sep. 30, 2025			Jun. 30, 2025			Sep. 30, 2024
ASSETS
Cash and due from banks	$	15,388		$	15,915		$	16,172
Interest-bearing deposits with other institutions		4,876			5,382			5,400
Cash and cash equivalents		20,264			21,297			21,572

Certificates of deposit on other financial institutions		-			-			-
Investment securities available for sale		163,291			155,582			169,473
Equity securities		2,377			2,256			2,594
Investment securities held to maturity		4,757			8,501			11,001
Loans held for sale		2,941			3,422			2,566

Loans		1,649,399			1,553,564			1,372,000
Less allowance for credit losses		10,776			10,171			8,715
Net Loans		1,638,623			1,543,393			1,363,285

Premises and equipment		28,569			28,730			27,557
Goodwill		3,512			3,512			3,561
Regulatory stock		13,296			12,439			8,361
Bank-owned life insurance		25,308			25,118			24,846
Accrued interest and other assets		30,818			30,465			29,979
TOTAL ASSETS	$	1,933,756		$	1,834,715		$	1,664,795

LIABILITIES
Noninterest-bearing deposits		195,917			186,105			175,998
Interest-bearing deposits		1,197,680			1,172,638			1,120,486
Total Deposits		1,393,597			1,358,743			1,296,484

Borrowings		389,329			333,311			233,308
Accrued interest and other liabilities		32,069			29,383			30,665
TOTAL LIABILITIES		1,814,995			1,721,437			1,560,457

STOCKHOLDERS' EQUITY
Common stock, $0.50 per value;
8,000,000 shares authorized,
3,023,690, 3,023,690 and 3,022,127 issued		1,512			1,512			1,511
Additional paid-in capital		12,846			12,616			14,158
Retained earnings		116,088			112,103			104,016
Accumulated other comprehensive income		(10,824	)		(11,962	)		(12,093	)
Treasury stock, at cost (26,300, 30,781 and 56,900 shares)		(861	)		(991	)		(3,254	)
TOTAL STOCKHOLDERS' EQUITY		118,761			113,278			104,338

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY	$	1,933,756		$	1,834,715		$	1,664,795

CONSOLIDATED STATEMENT OF INCOME
(Unaudited; in thousands)
	Three Months Ended						Nine Months Ended
	Sep. 30, 2025		Jun. 30, 2025		Sep. 30, 2024		Sep. 30, 2025		Sep. 30, 2024
INTEREST AND DIVIDEND INCOME
Interest and fees on loans:
Taxable	$	25,674	$	24,146	$	22,099	$	72,339	$	62,194
Exempt from federal income tax		287		265		277		783		796
Investment securities
Taxable		995		1,005		1,229		2,963		3,733
Exempt from federal income tax		59		59		58		176		170
Interest-bearing deposits with other institutions		51		49		62		159		231
Other dividend income		349		320		224		911		698
TOTAL INTEREST AND DIVIDEND INCOME		27,415		25,844		23,949		77,331		67,822

INTEREST EXPENSE
Deposits		8,579		8,067		8,849		24,876		24,548
Borrowings		3,536		3,573		2,346		9,901		7,038
TOTAL INTEREST EXPENSE		12,115		11,640		11,195		34,777		31,586

NET INTEREST INCOME		15,300		14,204		12,754		42,554		36,236
Provision for credit losses		781		470		665		1,410		1,245
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES		14,519		13,734		12,089		41,144		34,991

NONINTEREST INCOME
Service fees on deposit accounts		739		698		652		2,096		1,855
Equity securities gains, net		84		44		263		49		57
Gain on sale of loans, net		148		124		135		358		317
Earnings on Bank-owned life insurance		213		265		183		657		538
Insurance commissions		888		690		810		2,568		2,419
Travel agency commissions		51		41		33		100		112
Wealth management		1,163		595		949		2,668		2,501
Benefits consulting		159		157		161		486		485
Other		573		484		509		1,215		935
TOTAL NONINTEREST INCOME		4,018		3,098		3,695		10,197		9,219

NONINTEREST EXPENSE
Salaries and employee benefits		7,186		7,048		6,435		21,183		19,028
Occupancy and equipment		1,144		1,161		1,030		3,396		3,062
Data processing		1,365		1,352		1,234		4,099		3,528
Professional fees		217		265		175		670		532
Advertising		149		147		123		441		354
Federal deposit insurance		387		378		319		1,143		952
Other		1,783		1,848		1,402		5,101		4,227
TOTAL NONINTEREST EXPENSE		12,231		12,199		10,718		36,033		31,683

INCOME BEFORE INCOME TAXES		6,306		4,633		5,066		15,308		12,527
Income taxes		1,153		795		896		2,708		2,127
NET INCOME	$	5,153	$	3,838	$	4,170	$	12,600	$	10,400

Earnings per share	$	1.72	$	1.28	$	1.41	$	4.22	$	3.53

ADDITIONAL FINANCIAL INFORMATION
(Dollars and shares in thousands except per share amounts)(Unaudited)
	Three Months Ended									Nine Months Ended
	Sep. 30, 2025			Jun. 30, 2025			Sep. 30, 2024			Sep. 30, 2025			Sep. 30, 2024
PERFORMANCE MEASURES AND RATIOS
Return on average common equity		15.80	%		12.18	%		13.89	%		13.26	%		11.77	%
Return on average assets		1.09	%		0.85	%		1.01	%		0.93	%		0.87	%
Efficiency ratio		65.98	%		72.47	%		67.91	%		71.02	%		71.66	%
Net interest margin		3.43	%		3.36	%		3.30	%		3.35	%		3.26	%

	Three Months Ended									Nine Months Ended
	Sep. 30, 2025			Jun. 30, 2025			Sep. 30, 2024			Sep. 30, 2025			Sep. 30, 2024
AVERAGE BALANCES
Average assets	$	1,865,172		$	1,793,776		$	1,634,071		$	1,794,226		$	1,558,467
Average earning assets		1,766,641			1,694,455			1,534,946			1,695,440			1,485,613
Average total loans		1,593,790			1,521,284			1,346,713			1,523,796			1,293,843
Average deposits		1,372,083			1,303,120			1,271,823			1,325,238			1,227,042
Average common equity		124,436			121,682			112,093			121,083			109,000

	Sep. 30, 2025			Jun. 30, 2025			Sep. 30, 2024
EQUITY ANALYSIS
Total common equity	$	122,278		$	122,278		$	113,680
Common stock outstanding		3,023,690			3,023,690			3,022,127
Book value per share	$	39.76		$	37.46		$	35.46
Tangible book value per share	$	38.38		$	36.45		$	34.04
KISB - Stock price	$	38.00		$	35.86		$	29.61

ASSET QUALITY
Nonaccrual loans	$	509		$	506		$	501
Loans 90 days past due and still accruing		96			-			179
Total nonperforming loans	$	605		$	506		$	680
Other real estate owned and other repossessed assets		-			-			-
Total nonperforming assets	$	605		$	506		$	680
Nonperforming loans/portfolio loans		0.04	%		0.03	%		0.05	%
Nonperforming assets/assets		0.03	%		0.03	%		0.04	%

Allowance for credit losses	$	10,776		$	10,171		$	8,715
Allowance for credit losses/portfolio loans		0.65	%		0.65	%		0.64	%
Allowance for credit losses/nonperforming loans		1781.16	%		2010.08	%		1549.85	%
Net loan (recoveries) charge-offs for the quarter	$	(90	)	$	(88	)	$	(30	)

	Sep. 30, 2025			Jun. 30, 2025			Sep. 30, 2024
KISH BANK
Tier 1 leverage ratio		8.92	%		8.91	%		9.00	%
Tier 1 capital ratio		9.79	%		9.83	%		9.95	%
Total capital ratio		10.51	%		10.53	%		10.66	%

	Sep. 30, 2025			Jun. 30, 2025			Sep. 30, 2024
INTEREST SPREAD ANALYSIS
Yield on total loans		6.48	%		6.45	%		6.63	%
Yield on investments		2.57	%		2.61	%		2.82	%
Yield on interest earning deposits		3.50	%		3.96	%		8.53	%
Yield on earning assets		6.14	%		6.10	%		6.19	%

Cost of interest-bearing deposits		2.88	%		2.86	%		3.21	%
Cost of total deposits		2.48	%		2.48	%		2.77	%
Cost of borrowings		4.05	%		4.11	%		4.14	%
Cost of interest-bearing liabilities		3.14	%		3.16	%		3.37	%
Cost of funds		2.80	%		2.83	%		2.82	%