Kish Bancorp, Inc. Reports Net Income of $5.3 Million, or $1.77 Per Share, for the Second Quarter of 2026

Kish Bancorp, Inc. Reports Net Income of $5.3 Million, or $1.77 Per Share, for the Second Quarter of 2026 Kish Bancorp, Inc. Reports Net Income of $5.3 Million, or $1.77 Per Share, for the Second Quarter of 2026 GlobeNewswire July 15, 2026

STATE COLLEGE, Pa., July 15, 2026 (GLOBE NEWSWIRE) -- Kish Bancorp, Inc. (OTCQX: KISB) (“Kish” or the “Company”), parent company of Kish Bank, reported net income of $5.3 million, or $1.77 per share, for the second quarter of 2026, compared to $5.3 million, or $1.76 per share, for the first quarter of 2026, and $3.8 million, or $1.28 per share, for the second quarter of 2025. Results for the second quarter of 2026 included a $982 thousand provision for credit losses, compared to an $845 thousand provision expense in the first quarter of 2026, and a $470 thousand provision expense in the second quarter of 2025. For the first six months of 2026, net income was $10.6 million, or $3.51 per share, compared to $7.4 million, or $2.50 per share, for the six-month period in 2025. All results are unaudited.

“Earnings momentum carried into the second quarter based on sustained loan and deposit growth, and the continued success of our growth strategy,” stated William P. Hayes, Executive Chairman. “Second quarter earnings rose 38.5% compared to the same period last year, bringing year-to-date earnings up 42.4% over the first six months of 2025. That performance reflects diversified revenue expansion across all business units and steady attention to expense management and deposit pricing in an environment that continues to present both opportunity and uncertainty.”

“Crossing the $2 billion asset mark this quarter is a significant milestone for our organization that is worthy of note, as it reflects sustained focus on expansion into new markets while maintaining a disciplined focus on client acquisition and profitability fundamentals,” said Gregory T. Hayes, President and CEO. “We have worked hard at modernizing our operating platform, making it faster, more intuitive, and more digitally capable, without losing sight of the community banking personal service our clients value. Those investments are now paying off. Efficiency gains are showing up directly in our results, and our push into new markets is diversifying and strengthening our earnings base.”

Second Quarter 2026 Financial Highlights:

Balance Sheet

“Loan growth strengthened during the second quarter, with linked-quarter growth of 4.0%, as payoff activity eased while we maintained our measured approach to pricing,” said President and CEO Hayes. “Year-over-year, total loans outstanding climbed $223.8 million, or 14.4%, reflecting the sustained momentum the Bank has carried throughout the past 12 months. Growth was diversified across loan categories, with multiple segments driving meaningful gains in the portfolio. The most notable contributions were from 1-4 family residential loans, which expanded by $80.0 million, or 19.9%; multifamily loans, which increased by $48.9 million, or 18.9%; commercial and industrial loans, which increased by $41.5 million, or 27.6%; and non-farm non-residential loans, which grew by $93.7 million, or 25.1%, compared to a year ago. We continue to seek growth opportunities in sectors that exhibit strong credit metrics based on balanced supply and demand.”

Total assets ended the quarter at $2.08 billion, an increase of $250.2 million, or 13.6%, compared to $1.83 billion as of June 30, 2025. Investment securities increased to $199.5 million, an increase of $33.1 million from June 30, 2025. Average earning assets increased to $1.92 billion in the second quarter of 2026, compared to $1.69 billion in the second quarter of 2025. The average yield on interest-earning assets was 5.95% in the second quarter of 2025, down 15 basis points from 6.10% in the second quarter a year ago, a decline that was more than offset by a decrease in funding costs.

Total deposits grew by $150.4 million year over year to $1.51 billion, an increase of 11.1% from $1.36 billion a year ago. At June 30, 2026, noninterest-bearing demand deposit accounts increased 14.2% compared to a year ago, while interest-bearing deposits increased 10.6% compared to a year ago. Brokered deposits decreased a marked $25.6 million from the preceding quarter to $95.8 million at June 30, 2026. The cost of total deposits improved to 2.22% in the second quarter of 2026, compared to 2.31% in the first quarter of 2026, and 2.48% in the second quarter of 2025.

Stockholders’ equity increased 17.2% to $132.8 million at June 30, 2026, compared to $113.3 million a year earlier. At June 30, 2026, the Company’s tangible book value increased 16.8% to $42.59 per share, compared to $36.45 at June 30, 2025.

Based on the sustained retention in retained earnings, 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 10.08%, and a Total capital ratio of 10.87% at June 30, 2026.

Credit Quality

Nonperforming loans decreased slightly to $10.2 million, or 0.57% of total loans, at June 30, 2026, compared to $10.2 million, or 0.60% of total loans, at March 31, 2026, and increased compared to $506 thousand, or 0.03% of total loans, a year earlier. The allowance for credit losses represented 122.1% of nonperforming loans at June 30, 2026, compared to 117.6% at March 31, 2026, and 2,010.1% a year earlier.

“As previously disclosed, nonaccrual loans increased by $9.7 million during the prior quarter, driven entirely by a single syndication loan that passed its contractual maturity due to construction delays. 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.

Net loan charge-offs totaled $248 thousand in the second quarter of 2026, compared to net loan recoveries of $1 thousand in the first quarter of 2026 and net loan recoveries of $88 thousand in the second quarter of 2025. The allowance for credit losses was $12.4 million, or 0.70% of total loans, at June 30, 2026, compared to $12.0 million, or 0.70% of total loans, at March 31, 2026, and $10.2 million, or 0.65% of total loans, a year ago. The increase compared to the prior quarter included approximately $75 thousand of unallocated reserves.

Operating Results

Kish generated a return on average common equity of 14.94% and a return on average assets of 1.05% in the second quarter of 2026, compared to 12.18% and 0.85%, respectively, in the second quarter a year ago.

Net interest income, before the provision for credit losses, increased 17.0% to $16.6 million in the second quarter of 2026, compared to $14.2 million in the second quarter a year ago, reflecting a strong and well-managed net interest margin. The Company’s net interest margin was 3.46% in the second quarter of 2026, compared to 3.43% in the preceding quarter and 3.36% in the second 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. In the first six months of the year, the net interest margin expanded 15 basis points to 3.45%, compared to 3.30% in the year-ago period.

“Total borrowings increased during the second quarter, primarily reflecting the upsizing of our subordinated debt offering in May. At the same time, we’ve been prudent in managing our cost of funds. As brokered deposit rates moved higher, we deliberately let some of that funding roll off, replacing it with core deposits and lower-cost borrowings. That discipline is reflected in our improved cost of funds and net interest margin this quarter,” said President and CEO Hayes.

The Company recorded a $982 thousand provision for credit losses in the second quarter of 2026, compared to a $845 thousand provision for credit losses in the first quarter of 2026, and a $470 thousand provision for credit losses in the second quarter of 2025.

Kish’s first quarter noninterest income increased 17.2% to $3.6 million, compared to $3.1 million in the second 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. In the first six months of the year, noninterest income increased 17.5% to $7.3 million, compared to $6.2 million in the year-ago period.

Noninterest expense increased $700 thousand, or 5.7%, to $12.9 million in the second quarter of 2026, compared to $12.2 million in the second quarter of 2025. For the first six months of the year, noninterest expense increased $1.5 million, or 6.2%, to $25.3 million, compared to $23.8 million in the same period in 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. Higher operating costs largely stemmed from strategic technology investments designed to help the Bank scale efficiently and better serve customers.

The efficiency ratio for the second quarter of 2026 was 67.0%, compared to 66.1% for the preceding quarter and 72.5% for the second quarter of 2025. Year-to-date, the efficiency ratio was 66.5%, compared to 71.0% 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 second quarter of 2026, the Company recorded $1.1 million in state and federal income tax expense for an effective tax rate of 16.5%, compared to $795 thousand, or 17.2%, in the second quarter a year ago. In the first six months of 2026, the Company recorded $2.1 million in state and federal income tax expense for an effective rate of 16.6%, compared to $1.6 million, or 17.3%, in the year-ago period.

Dividend

On July 1, 2026, the Board of Directors increased its regular quarterly cash dividend by 0.04, or 10%, to $0.44 per share, compared to $0.40 per share in the first quarter of 2026. The dividend will be payable July 31, 2026, to shareholders of record on July 15, 2026. The current dividend represents an annualized yield of 2.54% 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.

Recent Events

During the second quarter of 2026, the Company completed the private placement of $35.0 million in aggregate principal amount of 6.25% Fixed-to-Floating Rate Subordinated Unsecured notes due in 2036 to various institutional and accredited investors (the “Offering”). Strong investor demand drove the Offering from its initial $25.0 million target to $35.0 million. The Company utilized the net proceeds of the Offering to redeem its 2021 subordinated notes, to repay other borrowings at the Holding Company, and for general corporate purposes.

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)
       
  Jun. 30, 2026 Mar. 31, 2026
 Jun. 30, 2025
ASSETS      
Cash and due from banks $11,706  $14,472  $15,915 
Interest-bearing deposits with other institutions  4,875   3,628   5,382 
Cash and cash equivalents  16,581   18,100   21,297 
       
Certificates of deposit on other financial institutions  -   -   - 
Investment securities available for sale  195,529   160,787   155,582 
Equity securities  1,697   2,554   2,256 
Investment securities held to maturity  2,227   2,722   8,501 
Loans held for sale  3,566   2,486   3,422 
       
Loans  1,777,410   1,709,280   1,553,564 
Less allowance for credit losses  12,389   11,975   10,171 
Net Loans  1,765,021   1,697,305   1,543,393 
       
Premises and equipment  28,113   28,079   28,730 
Goodwill  3,512   3,512   3,512 
Regulatory stock  11,953   10,918   12,439 
Bank-owned life insurance  25,545   25,687   25,118 
Accrued interest and other assets  31,151   29,008   30,465 
TOTAL ASSETS $2,084,895  $1,981,158  $1,834,715 
       
LIABILITIES      
Noninterest-bearing deposits  212,484   206,765   186,105 
Interest-bearing deposits  1,200,915   1,184,573   1,077,758 
Brokered deposits  95,788   121,546   94,880 
Total Deposits  1,509,187   1,512,884   1,358,743 
       
Borrowings  412,232   310,339   333,311 
Accrued interest and other liabilities  30,696   29,376   29,383 
TOTAL LIABILITIES  1,952,115   1,852,599   1,721,437 
       
STOCKHOLDERS' EQUITY      
Common stock, $0.50 per value;      
8,000,000 shares authorized,      
3,063,246, 3,041,986 and 3,023,690 issued  1,532   1,521   1,512 
Additional paid-in capital  13,551   13,395   12,616 
Retained earnings  128,605   124,500   112,103 
Accumulated other comprehensive income  (9,428)  (10,057)  (11,962)
Treasury stock, at cost (32,064, 20,871 and 30,781 shares)  (1,480)  (800)  (991)
TOTAL STOCKHOLDERS' EQUITY  132,780   128,559   113,278 
       
TOTAL LIABILITIES AND      
STOCKHOLDERS' EQUITY $2,084,895  $1,981,158  $1,834,715 


CONSOLIDATED STATEMENT OF INCOME
(Unaudited; in thousands)
               
  Three Months Ended
 Six Months Ended
  Jun. 30, 2026
 Mar. 31, 2026
 Jun. 30, 2025
 Jun. 30, 2026
 Jun. 30, 2025
INTEREST AND DIVIDEND INCOME              
Interest and fees on loans:              
Taxable $26,640  $25,867  $24,146  $52,507  $46,665 
Exempt from federal income tax  320   316   265   636   496 
Investment securities              
Taxable  1,252   1,052   1,005   2,304   1,968 
Exempt from federal income tax  62   61   59   123   117 
Interest-bearing deposits with other institutions  32   29   49   61   108 
Other dividend income  303   299   320   602   562 
TOTAL INTEREST AND DIVIDEND INCOME  28,609   27,624   25,844   56,233   49,916 
               
INTEREST EXPENSE              
Deposits  8,265   8,470   8,067   16,735   16,297 
Borrowings  3,729   3,197   3,573   6,926   6,365 
TOTAL INTEREST EXPENSE  11,994   11,667   11,640   23,661   22,662 
               
NET INTEREST INCOME  16,615   15,957   14,204   32,572   27,254 
Provision for credit losses  982   845   470   1,827   629 
NET INTEREST INCOME AFTER              
PROVISION FOR CREDIT LOSSES  15,633   15,112   13,734   30,745   26,625 
               
NONINTEREST INCOME              
Service fees on deposit accounts  801   721   698   1,522   1,357 
Equity securities (losses) gains, net  606   105   44   272   (35)
Gain on sale of loans, net  143   113   124   256   210 
Earnings on Bank-owned life insurance  204   188   265   392   444 
Insurance commissions  733   1,094   690   1,827   1,680 
Travel agency commissions  26   24   41   50   49 
Wealth management  761   1,013   595   1,774   1,505 
Benefits consulting  205   168   157   373   327 
Other  152   204   484   356   642 
TOTAL NONINTEREST INCOME  3,631   3,630   3,098   7,261   6,179 
               
NONINTEREST EXPENSE              
Salaries and employee benefits  7,387   7,567   7,048   14,954   13,997 
Occupancy and equipment  1,166   1,175   1,161   2,341   2,252 
Data processing  1,352   1,387   1,352   2,739   2,734 
Professional fees  160   137   265   297   453 
Advertising  192   230   147   422   292 
Federal deposit insurance  396   412   378   808   756 
Other  2,245   1,478   1,848   3,724   3,318 
TOTAL NONINTEREST EXPENSE  12,898   12,386   12,199   25,285   23,802 
               
INCOME BEFORE INCOME TAXES  6,366   6,356   4,633   12,721   9,002 
Income taxes  1,048   1,066   795   2,114   1,555 
NET INCOME $5,317  $5,290  $3,838  $10,607  $7,447 
               
Earnings per share $1.77  $1.76  $1.28  $3.51  $2.50 


ADDITIONAL FINANCIAL INFORMATION
(Dollars and shares in thousands except per share amounts)(Unaudited)
           
  Three Months Ended Six Months Ended
  Jun. 30, 2026 Mar. 31, 2026 Jun. 30, 2025 Jun. 30, 2026 Jun. 30, 2025
PERFORMANCE MEASURES AND RATIOS          
Return on average common equity  14.94%  15.73%  12.18%  15.32%  11.93%
Return on average assets  1.05%  1.08%  0.85%  1.06%  0.85%
Efficiency ratio  66.95%  66.09%  72.47%  66.53%  71.02%
Net interest margin  3.46%  3.43%  3.36%  3.45%  3.30%
           
  Three Months Ended Six Months Ended
  Jun. 30, 2026 Mar. 31, 2026 Jun. 30, 2025 Jun. 30, 2026 Jun. 30, 2025
AVERAGE BALANCES          
Average assets $2,022,546  $1,978,293  $1,793,776  $2,000,542  $1,758,165 
Average earning assets  1,922,893   1,883,611   1,694,455   1,903,361   1,659,250 
Average total loans  1,739,005   1,710,249   1,521,284   1,724,706   1,488,219 
Average deposits  1,493,183   1,486,519   1,303,120   1,489,970   1,301,428 
Average common equity  137,729   133,747   121,682   135,749   120,090 
           
  Jun. 30, 2026 Mar. 31, 2026 Jun. 30, 2025    
EQUITY ANALYSIS          
Total common equity $139,292  $135,688  $122,278     
Common stock outstanding  3,063,246   3,041,986   3,023,690     
Book value per share $43.94  $42.70  $37.46     
Tangible book value per share $42.59  $41.35  $36.45     
           
ASSET QUALITY          
Nonaccrual loans $10,151  $10,187  $506     
Loans 90 days past due and still accruing  -   -   -     
Total nonperforming loans $10,151  $10,187  $506     
Other real estate owned and other repossessed assets  -   -   -     
Total nonperforming assets $10,151  $10,187  $506     
Nonperforming loans/portfolio loans  0.57%  0.60%  0.03%    
Nonperforming assets/assets  0.49%  0.51%  0.03%    
           
Allowance for credit losses $12,389  $11,975  $10,171     
Allowance for credit losses/portfolio loans  0.70%  0.70%  0.65%    
Allowance for credit losses/nonperforming loans  122.05%  117.55%  2010.08%    
Net loan (recoveries) charge-offs for the quarter $248  $(1) $(88)    
           
  Jun. 30, 2026 Mar. 31, 2026 Jun. 30, 2025    
KISH BANK          
Tier 1 leverage ratio  8.92%  8.88%  8.91%    
Tier 1 capital ratio  10.08%  10.21%  9.83%    
Total capital ratio  10.87%  10.99%  10.53%    
           
  Jun. 30, 2026 Mar. 31, 2026 Jun. 30, 2025    
INTEREST SPREAD ANALYSIS          
Yield on total loans  6.23%  6.22%  6.45%    
Yield on investments  2.96%  2.73%  2.61%    
Yield on interest earning deposits  2.67%  2.05%  3.96%    
Yield on earning assets  5.95%  5.93%  6.10%    
           
Cost of interest-bearing deposits  2.58%  2.66%  2.86%    
Cost of total deposits  2.22%  2.31%  2.48%    
Cost of borrowings  4.05%  3.87%  4.11%    
Cost of interest-bearing liabilities  2.91%  2.91%  3.16%    
Cost of funds  2.58%  2.60%  2.83%    


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


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