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

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251014554896/en/