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)--April 17, 2025--
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%
View source version on businesswire.com: https://www.businesswire.com/news/home/20250417704733/en/
CONTACT:
Mark J. Cvrkel, EVP, Treasurer and Chief Financial Officer, 814-325-7346
(END) Dow Jones Newswires
April 17, 2025 16:01 ET (20:01 GMT)
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