Kish Bancorp, Inc. Reports Net Income of $5.3 Million, or $1.76 Per Share, for the First Quarter of 2026; Tangible Book Value Increases to $41.35 Per Share

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

STATE COLLEGE, Pa.--(BUSINESS WIRE)-- Kish Bancorp, Inc. (OTCQX: KISB) (“Kish” or the “Company”), parent company of Kish Bank, reported net income of $5.3 million, or $1.76 per share, for the first quarter of 2026, compared to $5.5 million, or $1.84 per share, for the fourth quarter of 2025, and $3.6 million, or $1.21 per share, for the first quarter of 2025. Results for the first quarter of 2026 included an $845 thousand provision for credit losses, compared to a $393 thousand provision expense in the fourth quarter of 2025, and a $159 thousand provision expense in the first quarter of 2025. All results are unaudited.

“The first quarter was a solid start to the year, shaped by the strength of our client relationships and the disciplined execution of our team,” stated William P. Hayes, Executive Chairman. “Earnings remained strong, supported by net interest margin expansion, a diversified revenue base, and ongoing attention to expense management in an environment that continues to present both opportunity and uncertainty. Deposit growth was a highlight of the quarter, while loan growth was more measured, a reflection of our continued discipline around pricing and credit quality. We remain focused on executing our strategy thoughtfully and are optimistic about sustaining the strong earnings momentum reflected in the 47% year-over-year gain.”

“The work we have done as an organization is reflected in what matters most: the experience we deliver to customers and the performance we generate for shareholders,” said Gregory T. Hayes, President and CEO. “We have built a banking platform that is faster, more responsive, and digitally capable, while staying true to what defines us as a community bank. The efficiency gains we have realized are flowing through to our bottom line, and expansion into new markets continues to broaden our earnings base.”

First Quarter 2026 Financial Highlights:

• Net income increased 46.6% to $5.3 million, or $1.76 per share, for the first quarter of 2026, compared to $3.6 million, or $1.21 per share, for the first quarter of 2025.
• Total assets increased $209.9 million, or 11.8%, to $1.98 billion at March 31, 2026, compared to $1.77 billion a year ago.
• Total loans grew by $214.0 million, or 14.3%, year over year to $1.71 billion, compared to $1.50 billion a year ago.
• Total deposits increased $216.7 million year over year, or 16.7%, to $1.51 billion, as a broadening customer base and expansion into new markets continue to fuel deposit growth.
• First quarter net interest income, before provision, increased $2.9 million, or 22.3%, compared to the first quarter a year ago.
• First quarter provision for credit losses increased to $845 thousand, compared to $159 thousand in the first quarter a year ago.
• Noninterest income increased $549 thousand, or 17.8%, compared to the year ago quarter.
• First quarter net interest margin expanded 17 basis points from the first quarter a year ago to 3.43%.
• Continued strong first quarter ROE reached 15.73% accompanied by ROA of 1.08%.
• Tangible book value per share increased 16.0% to $41.35, compared to $35.65 a year ago.
• Paid a $0.40 per share quarterly cash dividend on January 30, 2026, to shareholders of record as of January 15, 2026.
• At March 31, 2026, Kish Bank continued to exceed regulatory well-capitalized requirements with a Tier 1 leverage ratio of 8.88%, a Tier 1 capital ratio of 10.21%, and a Total risk-based capital ratio of 10.99% supported by capital expansion fueled by strong growth in retained earnings.

Balance Sheet

“The pace of loan growth normalized during the first quarter, with linked-quarter growth coming in at 0.6%, a reflection of both elevated payoff activity and a deliberate decision to hold our margin rather than compete on rate,” said President and CEO Hayes. “On a year-over-year basis, total loans outstanding were up $214.0 million, or 14.3%, a testament to the momentum built over the past year. Loan growth was broad-based, with multiple categories contributing meaningfully to the overall expansion of the portfolio. The most notable contributions were from 1-4 family residential loans, which increased by $64.8 million, or 16.7%; multifamily loans, which increased by $38.9 million, or 15.5%; and nonfarm nonresidential loans, which grew by $98.4 million, or 27.7%, compared to a year ago.”

Total assets ended the quarter at $1.98 billion, an increase of $209.9 million, or 11.8%, compared to $1.77 billion as of March 31, 2025. Investment securities increased to $166.1 million, an increase of $1.8 million from March 31, 2025. Average earning assets increased to $1.88 billion in the first quarter of 2026, compared to $1.63 billion in the first quarter of 2025. The average yield on interest-earning assets was 5.93% in the first quarter of 2025, down six basis points from 5.99% in the first quarter a year ago.

Total deposits grew by $216.7 million year over year to $1.51 billion, an increase of 16.7% from $1.30 billion a year ago. At March 31, 2026, noninterest-bearing demand deposit accounts increased 19.4% compared to a year ago, while interest-bearing deposits increased 16.3% compared to a year ago. Brokered deposits decreased $10.3 million from the preceding quarter to $121.5 million at March 31, 2026. The cost of total deposits improved to 2.31% in the first quarter of 2026, compared to 2.41% in the fourth quarter of 2025, and 2.57% in the first quarter of 2025.

Stockholders’ equity increased 16.8% to $128.6 million at March 31, 2026, compared to $110.0 million a year earlier. At March 31, 2026, the Company’s tangible book value increased 16.0% to $41.35 per share, compared to $35.65 at March 31, 2025.

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 8.88%, a Tier 1 capital ratio of 10.21%, and a Total capital ratio of 10.99% at March 31, 2026.

Credit Quality

“Our nonaccrual loans increased by $9.7 million during the quarter, driven entirely by a single syndication loan that passed its contractual maturity due to construction delays. We took an additional provision during the first quarter for this loan out of an abundance of caution and in keeping with our disciplined approach to credit management. We remain confident in the quality of our overall portfolio and our ability to resolve this credit without material impact to earnings,” said President and CEO Hayes.

Nonperforming loans increased to $10.2 million, or 0.60% of total loans, at March 31, 2026, compared to $646 thousand, or 0.04% of total loans, at December 31, 2025, and $599 thousand, or 0.04% of total loans, a year earlier. The increase during the quarter was the result of one syndication loan that was placed on nonaccrual. The allowance for credit losses represented 117.6% of nonperforming loans at March 31, 2026, compared to 1,698.8% at December 31, 2025, and 1,582.8% a year earlier.

Net loan recoveries totaled $1 thousand in the first quarter of 2026, compared to net loan charge-offs of $6 thousand in the fourth quarter of 2025 and net loan recoveries of $2 thousand in the first quarter of 2025. The allowance for credit losses was $12.0 million, or 0.70% of total loans, at March 31, 2026, compared to $11.0 million, or 0.65% of total loans, at December 31, 2025, and $9.5 million, or 0.63% of total loans, a year ago. The increase compared to the prior quarter included approximately $300 thousand of unallocated reserves.

Operating Results

Kish generated a return on average common equity of 15.73% and a return on average assets of 1.08% in the first quarter of 2026, compared to 11.71% and 0.84%, respectively, in the first quarter a year ago.

Net interest income, before the provision for credit losses, increased 22.3% to $16.0 million in the first quarter of 2026, compared to $13.1 million in the first quarter a year ago, reflecting a stable and well-managed net interest margin. The Company’s net interest margin was 3.43% in the first quarter of 2026, compared to 3.41% in the preceding quarter and 3.26% in the first quarter of 2025. Kish’s balance sheet strategies, particularly its hedging program, have successfully improved net interest margin and interest rate risk management while increasing overall balance sheet flexibility. Hedging execution requires the extensive use of borrowed funds from wholesale funding sources, such as the FHLB.

The Company recorded an $845 thousand provision for credit losses in the first quarter of 2026, compared to a $393 thousand provision for credit losses in the fourth quarter of 2025, and a $159 thousand provision in the first quarter of 2025.

Kish’s first quarter noninterest income increased 17.8% to $3.6 million, compared to $3.1 million in the first quarter a year ago. The year over year increase was primarily a result of higher service fees on deposit accounts, equity securities gains, and strong results from Kish’s insurance and wealth management divisions.

Noninterest expense increased $783 thousand, or 6.7%, to $12.4 million in the first quarter of 2026, compared to $11.6 million in the first quarter of 2025. Salary and benefit expense remains the leading driver of noninterest expense growth, reflecting an expanding team and the inflationary pressures weighing on compensation across the industry. Operating costs also edged higher, largely reflecting intentional spending on technology infrastructure designed to scale with the Bank’s growth and improve how it serves customers.

The efficiency ratio for the first quarter of 2026 was 66.1%, compared to 64.2% for the preceding quarter and 72.7% for the first quarter of 2025. The efficiency ratio includes the Company’s non-banking units, which operate at higher expense levels than Kish Bank.

In the first quarter of 2026, the Company recorded $1.1 million in state and federal income tax expense for an effective tax rate of 16.8%, compared to $760 thousand, or 17.4%, in the first quarter a year ago.

Dividend

On April 1, 2026, the Board of Directors declared a quarterly dividend of $0.40 per share, payable April 30, 2026, to shareholders of record as of April 15, 2026, which was unchanged from the prior quarter. The current dividend represents an annualized yield of 3.20% 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 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.

Consolidated Balance Sheet
(Unaudited; in thousands)
	Mar. 31, 2026				Dec. 31, 2025				Mar. 31, 2025
ASSETS
Cash and due from banks	$	14,472			$	12,131			$	14,333
Interest-bearing deposits with other institutions		3,628				5,383				4,796
Cash and cash equivalents		18,100				17,514				19,129
Certificates of deposit on other financial institutions		-				-				-
Investment securities available for sale		160,787				163,687				152,592
Equity securities		2,554				2,449				2,298
Investment securities held to maturity		2,722				2,722				9,405
Loans held for sale		2,486				1,200				1,583
Loans		1,709,280				1,699,906				1,495,235
Less allowance for credit losses		11,975				10,974				9,481
Net Loans		1,697,305				1,688,932				1,485,754
Premises and equipment		28,079				28,218				28,163
Goodwill		3,512				3,512				3,512
Regulatory stock		10,918				11,664				11,379
Bank-owned life insurance		25,687				25,498				25,213
Accrued interest and other assets		29,008				28,357				32,279
TOTAL ASSETS	$	1,981,158			$	1,973,753			$	1,771,307
LIABILITIES
Noninterest-bearing deposits		206,765				201,044				173,197
Interest-bearing deposits		1,306,119				1,278,313				1,123,020
Total Deposits		1,512,884				1,479,357				1,296,217
Borrowings		310,339				340,341				331,801
Accrued interest and other liabilities		29,376				29,892				33,254
TOTAL LIABILITIES		1,852,599				1,849,590				1,661,272
STOCKHOLDERS' EQUITY
Common stock, $0.50 per value; 8,000,000 shares authorized, 3,041,986, 3,023,690 and 3,022,127 issued		1,521				1,512				1,512
Additional paid-in capital		13,395				13,052				13,062
Retained earnings		124,500				120,413				109,431
Accumulated other comprehensive income		(10,057	)			(10,165	)			(12,590	)
Treasury stock, at cost (20,871, 18,596 and 44,492 shares)		(800	)			(649	)			(1,380	)
TOTAL STOCKHOLDERS' EQUITY		128,559				124,163				110,035
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,981,158			$	1,973,753			$	1,771,307

CONSOLIDATED STATEMENT OF INCOME
(Unaudited; in thousands)
	Three Months Ended
	Mar. 31, 2026				Dec. 31, 2025				Mar. 31, 2025
INTEREST AND DIVIDEND INCOME
Interest and fees on loans:
Taxable	$	25,867			$	26,274			$	22,519
Exempt from federal income tax		316				316				231
Investment securities
Taxable		1,052				1,009				963
Exempt from federal income tax		61				60				58
Interest-bearing deposits with other institutions		29				46				59
Other dividend income		299				337				242
TOTAL INTEREST AND DIVIDEND INCOME		27,624				28,042				24,072
INTEREST EXPENSE
Deposits		8,470				8,768				8,230
Borrowings		3,197				3,425				2,792
TOTAL INTEREST EXPENSE		11,667				12,193				11,022
NET INTEREST INCOME		15,957				15,849				13,050
Provision for credit losses		845				393				159
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		15,112				15,456				12,891
NONINTEREST INCOME
Service fees on deposit accounts		721				744				659
Equity securities gains (losses), net		105				23				(79	)
Gain on sale of loans, net		113				155				86
Earnings on Bank-owned life insurance		188				190				179
Insurance commissions		1,094				680				990
Travel agency commissions		24				30				8
Wealth management		1,013				872				910
Benefits consulting		168				169				170
Other		204				606				158
TOTAL NONINTEREST INCOME		3,630				3,469				3,081
NONINTEREST EXPENSE
Salaries and employee benefits		7,567				7,602				6,949
Occupancy and equipment		1,175				1,066				1,091
Data processing		1,387				1,274				1,382
Professional fees		137				166				188
Advertising		230				263				145
Federal deposit insurance		412				394				378
Other		1,478				1,381				1,470
TOTAL NONINTEREST EXPENSE		12,386				12,146				11,603
INCOME BEFORE INCOME TAXES		6,356				6,779				4,369
Income taxes		1,066				1,255				760
NET INCOME	$	5,290			$	5,525			$	3,609
Earnings per share	$	1.76			$	1.84			$	1.21

ADDITIONAL FINANCIAL INFORMATION
(Dollars and shares in thousands except per share amounts)(Unaudited)
	Three Months Ended
	Mar. 31, 2026				Dec. 31, 2025				Mar. 31, 2025
PERFORMANCE MEASURES AND RATIOS
Return on average common equity		15.73	%			16.55	%			11.71	%
Return on average assets		1.08	%			1.13	%			0.84	%
Efficiency ratio		66.09	%			64.18	%			72.65	%
Net interest margin		3.43	%			3.41	%			3.26	%
	Three Months Ended
	Mar. 31, 2026				Dec. 31, 2025				Mar. 31, 2025
AVERAGE BALANCES
Average assets	$	1,978,293			$	1,936,821			$	1,722,201
Average earning assets		1,883,611				1,840,341				1,632,737
Average total loans		1,710,249				1,664,328				1,454,787
Average deposits		1,486,519				1,441,237				1,299,717
Average common equity		133,747				129,170				118,480
	Mar. 31, 2026				Dec. 31, 2025				Mar. 31, 2025
EQUITY ANALYSIS
Total common equity	$	135,688			$	131,390			$	118,073
Common stock outstanding		3,041,986				3,023,690				3,023,690
Book value per share	$	42.70			$	42.10			$	36.39
Tangible book value per share	$	41.35			$	40.70			$	35.65
ASSET QUALITY
Nonaccrual loans	$	10,187			$	532			$	503
Loans 90 days past due and still accruing		-				114				96
Total nonperforming loans	$	10,187			$	646			$	599
Other real estate owned and other repossessed assets		-				-				-
Total nonperforming assets	$	10,187			$	646			$	599
Nonperforming loans/portfolio loans		0.60	%			0.04	%			0.04	%
Nonperforming assets/assets		0.51	%			0.03	%			0.03	%
Allowance for credit losses	$	11,975			$	10,974			$	9,481
Allowance for credit losses/portfolio loans		0.70	%			0.65	%			0.63	%
Allowance for credit losses/nonperforming loans		117.55	%			1698.76	%			1582.80	%
Net loan (recoveries) charge-offs for the quarter	$	(1	)		$	6			$	(2	)
	Mar. 31, 2026				Dec. 31, 2025				Mar. 31, 2025
KISH BANK
Tier 1 leverage ratio		8.88	%			8.84	%			9.05	%
Tier 1 capital ratio		10.21	%			9.84	%			9.84	%
Total capital ratio		10.99	%			10.57	%			10.52	%
	Mar. 31, 2026				Dec. 31, 2025				Mar. 31, 2025
INTEREST SPREAD ANALYSIS
Yield on total loans		6.22	%			6.35	%			6.36	%
Yield on investments		2.73	%			2.54	%			2.58	%
Yield on interest earning deposits		2.05	%			3.26	%			4.34	%
Yield on earning assets		5.93	%			6.03	%			5.99	%
Cost of interest-bearing deposits		2.66	%			2.80	%			2.95	%
Cost of total deposits		2.31	%			2.41	%			2.57	%
Cost of borrowings		3.87	%			3.96	%			4.05	%
Cost of interest-bearing liabilities		2.91	%			3.05	%			3.17	%
Cost of funds		2.60	%			2.71	%			2.83	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260414594670/en/

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

Source: Kish Bancorp, Inc.