Kish Bancorp, Inc. Reports Net Income of $5.5 Million, or $1.84 Per Share, for the Fourth Quarter of 2025 and $18.1 Million, or $6.25 Per Share, for the Year

STATE COLLEGE, Pa.--(BUSINESS WIRE)--Kish Bancorp, Inc. (OTCQX: KISB) (“Kish” or the “Company”), parent company of Kish Bank, reported net income of $5.5 million, or $1.84 per share, for the fourth quarter of 2025, reflecting a 7.2% increase compared to $5.2 million, or $1.72 per share, for the third quarter of 2025, and a 34.1% increase compared to $4.1 million, or $1.39 per share, for the fourth quarter of 2024. Results for the fourth quarter of 2025 included a $393 thousand provision for credit losses, compared to a $781 thousand provision expense in the third quarter of 2025, and a $142 thousand negative provision expense in the fourth quarter of 2024.

For the year ended December 31, 2025, net income increased 24.8% to $18.1 million, or $6.25 per share, compared to $14.5 million, or $5.13 per share, in 2024. All results are unaudited.

“Our fourth quarter and full year performance underscores the strength of our strategic initiatives and our team’s unwavering commitment to delivering exceptional value for our shareholders and clients,” stated William P. Hayes, Executive Chairman. “We achieved robust earnings growth during the fourth quarter, reflecting both the quality of our diversified revenue streams and our proactive approach to managing expenses in a dynamic operating environment. Our 25% growth in net income for the year is a direct outcome of our strategic focus on growth in core deposits and high-performing loans across new and existing markets. Additionally, credit quality metrics remained strong, demonstrating the effectiveness of our disciplined underwriting standards and portfolio management practices. As we enter the new year, we’re strategically positioned to build on this momentum, leveraging our deep client relationships, operational excellence, and agile business model to drive sustainable growth and navigate evolving market conditions with confidence.”

“The operational improvements we’ve implemented are delivering tangible results, both in how effectively we support our customers and in the financial outcomes we’re generating for shareholders,” said Gregory T. Hayes, President and CEO. “These enhancements allow us to process transactions faster, provide more responsive service, and offer the digital tools that today’s customers expect, all while maintaining the personal service that defines us as a community bank. Our growth in new markets and expansion of our customer base have been key elements of our success, positioning us for continued momentum. As we look ahead, we are confident that our focus on operational excellence and customer-centric innovation will continue to generate strong returns for shareholders and reinforce our role as a trusted financial institution in the markets we serve.”

Fourth Quarter 2025 Financial Highlights:

• Net income increased 7.2% to $5.5 million, or $1.84 per share, for the fourth quarter of 2025, compared to $5.2 million, or $1.72 per share, for the third quarter of 2025, and increased 34.1% compared to $4.1 million, or $1.39 per share, for the fourth quarter of 2024.
• Total assets increased $281.2 million, or 16.6%, to $1.97 billion at December 31, 2025, compared to $1.69 billion a year ago.
• Total loans grew by $275.9 million, or 19.4%, year over year to $1.70 billion, compared to $1.42 billion a year ago.
• Total deposits increased $181.3 million year over year, or 14.0%, to $1.48 billion, as Kish Bank continues growing its customer base and expanding in new markets.
• Fourth quarter net interest income, before provision, increased $3.1 million, or 23.9%, compared to the fourth quarter a year ago.
• Noninterest income increased $165 thousand, or 5.0%, compared to the year ago quarter.
• Fourth quarter net interest margin expanded 18 basis points from the fourth quarter a year ago to 3.41%.
• Continued strong fourth quarter ROE of 16.55% and ROA of 1.13%.
• Tangible book value per share increased 16.1% to $40.14, compared to $34.58 a year ago.
• Paid a $0.40 per share quarterly cash dividend on October 31, 2025, to shareholders of record as of October 15, 2025, which was a $0.01 per share increase over the prior quarter.
• At December 31, 2025, Kish Bank continued to exceed regulatory well-capitalized requirements with a Tier 1 leverage ratio of 8.84%, a Tier 1 capital ratio of 9.84%, and a Total risk-based capital ratio of 10.57%.

Balance Sheet

“Loan growth momentum remained strong throughout the quarter, driving total loans outstanding up by $275.9 million, or 19.4%, compared to the same period a year ago, and increasing $50.5 million, or 3.1%, over the prior quarter,” said President and CEO Hayes. “Growth was well-distributed across our loan portfolio, with meaningful contributions from several key categories. The most notable contributions were from 1-4 family residential loans, which increased by $58.3 million, or 15.4%; multifamily loans, which increased by $62.4 million, or 28.6%; and nonfarm nonresidential loans, which grew by $110.1 million, or 33.1%.”

Total assets ended the quarter at $1.97 billion, an increase of $281.2 million, or 16.6%, compared to $1.69 billion as of December 31, 2024. Investment securities increased to $168.9 million, an increase of $5.7 million from December 31, 2024. Average earning assets increased to $1.84 billion in the fourth quarter of 2025, compared to $1.57 billion in the fourth quarter of 2024. The average yield on interest-earning assets was 6.03% in the fourth quarter of 2025, down three basis points from 6.06% in the fourth quarter a year ago.

Total deposits grew by $181.3 million year over year to $1.48 billion, an increase of 14.0% from $1.30 billion a year ago. At December 31, 2025, noninterest-bearing demand deposit accounts increased 17.3% compared to a year ago, while interest-bearing deposits increased 13.5% compared to a year ago. Brokered deposits increased $35.8 million from the preceding quarter to $131.8 million at December 31, 2025. The cost of total deposits improved to 2.41% in the fourth quarter of 2025, compared to 2.48% in the third quarter of 2025, and 2.71% in the fourth quarter of 2024.

Stockholders’ equity increased 17.0% to $124.2 million at December 31, 2025, compared to $106.1 million a year earlier. At December 31, 2025, the Company’s tangible book value increased 16.1% to $40.14 per share, compared to $34.58 at December 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 8.84%, a Tier 1 capital ratio of 9.84%, and a Total capital ratio of 10.57% at December 31, 2025.

Operating Results

Kish generated a return on average common equity of 16.55% and a return on average assets of 1.13% in the fourth quarter of 2025, compared to 13.56% and 0.97%, respectively, in the fourth quarter a year ago. For the year, the return on average common equity was 14.12% and return on average assets was 0.98%, compared to 12.23% and 0.89%, respectively, for 2024.

Net interest income, before the provision for credit losses, increased 23.9% to $15.9 million in the fourth quarter of 2025, compared to $12.8 million in the fourth quarter a year ago. For the year, net interest income before the provision for credit losses increased $9.4 million, or 19.1% year over year, reflecting a stable and well-managed net interest margin. The Company’s net interest margin was 3.41% in the fourth quarter of 2025, compared to 3.43% in the preceding quarter and 3.23% in the fourth quarter of 2024. For the year, the net interest margin expanded 12 basis points to 3.37%, compared to 3.25% in the year-ago period. 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 a $393 thousand provision for credit losses in the fourth quarter of 2025, compared to a $781 thousand provision for credit losses in the third quarter of 2025, and a $142 thousand negative provision expense in the fourth quarter of 2024.

Kish’s fourth quarter noninterest income increased 5.0% to $3.5 million, compared to $3.3 million in the fourth quarter a year ago. Noninterest income for the twelve-month period increased by 9.1% 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 $899 thousand, or 8.0%, to $12.1 million in the fourth quarter of 2025, compared to $11.2 million in the fourth quarter of 2024. For the year, noninterest expense increased $5.2 million, or 12.2%, to $48.2 million, compared to $42.9 million for 2024. Team expansion and broader inflationary impacts on compensation continue to be the primary drivers of increased salary and benefit expenses. Operating expenses also increased due to higher FDIC insurance premiums as well as deliberate investments in technology infrastructure needed to support scalable growth and strengthen customer engagement.

The efficiency ratio for the fourth quarter of 2025 was 64.2%, compared to 66.0% for the preceding quarter and 69.3% for the fourth quarter of 2024. For the year, the efficiency ratio was 68.6%, compared to 71.0% for 2024. The efficiency ratio includes the Company’s non-banking units, which operate at higher expense levels than Kish Bank.

In the fourth quarter of 2025, the Company recorded $1.3 million in state and federal income tax expense for an effective tax rate of 18.5%, compared to $873 thousand, or 17.5%, in the fourth quarter a year ago. For the year, the Company recorded $4.0 million in state and federal income tax expense for an effective rate of 17.9%, compared to $3.0 million, or 17.1%, for 2024.

Credit Quality

The allowance for credit losses represented 1,698.8% of nonperforming loans at December 31, 2025, compared to 1,233.5% a year earlier. Nonperforming loans were $646 thousand, or 0.04% of total loans, at December 31, 2025, compared to $722 thousand, or 0.05% of total loans, a year earlier.

Net loan charge-offs totaled $6 thousand in the fourth quarter of 2025, compared to net loan recoveries of $262 thousand in the fourth quarter a year ago. For the year, net loan recoveries totaled $82.7 thousand compared to net loan recoveries of $267.9 thousand for 2024. The allowance for credit losses was $11.0 million, or 0.65% of total loans, at December 31, 2025, compared to $8.9 million, or 0.63% of total loans, a year ago. The increase year over year included approximately $300 thousand of unallocated reserves.

Dividend

On January 2, 2026, the Board of Directors declared a quarterly dividend of $0.40 per share, payable January 30, 2026, to shareholders of record as of January 15, 2026, which was unchanged from the prior quarter. The current dividend represents an annualized yield of 3.97% 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)
	Dec. 31, 2025			Sep. 30, 2025			Dec. 31, 2024
ASSETS
Cash and due from banks	$	12,131		$	15,388		$	13,920
Interest-bearing deposits with other institutions		5,383			4,876			3,297
Cash and cash equivalents		17,514			20,264			17,217
Certificates of deposit on other financial institutions		-			-			-
Investment securities available for sale		163,687			163,291			151,328
Equity securities		2,449			2,377			2,378
Investment securities held to maturity		2,722			4,757			9,406
Loans held for sale		1,200			2,941			786
Loans		1,699,906			1,649,399			1,424,000
Less allowance for credit losses		10,974			10,776			8,906
Net Loans		1,688,932			1,638,623			1,415,094
Premises and equipment		28,218			28,569			27,534
Goodwill		3,512			3,512			3,512
Regulatory stock		11,664			13,296			8,330
Bank-owned life insurance		25,498			25,308			25,032
Accrued interest and other assets		28,357			30,818			31,933
TOTAL ASSETS	$	1,973,753		$	1,933,756		$	1,692,550
LIABILITIES
Noninterest-bearing deposits		201,044			195,917			171,361
Interest-bearing deposits		1,278,313			1,197,680			1,126,709
Total Deposits		1,479,357			1,393,597			1,298,070
Borrowings		340,341			389,329			252,635
Accrued interest and other liabilities		29,892			32,069			35,734
TOTAL LIABILITIES		1,849,590			1,814,995			1,586,439
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		13,052			12,846			12,840
Retained earnings		120,413			116,088			106,979
Accumulated other comprehensive income		(10,165	)		(10,824	)		(13,623	)
Treasury stock, at cost (18,596, 26,300 and 56,900 shares)		(649	)		(861	)		(1,596	)
TOTAL STOCKHOLDERS' EQUITY		124,163			118,761			106,111
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY	$	1,973,753		$	1,933,756		$	1,692,550

CONSOLIDATED STATEMENT OF INCOME
(Unaudited; in thousands)
	Three Months Ended							Twelve Months Ended
	Dec. 31, 2025		Sep. 30, 2025		Dec. 31, 2024			Dec. 31, 2025		Dec. 31, 2024
INTEREST AND DIVIDEND INCOME
Interest and fees on loans:
Taxable	$	26,274	$	25,674	$	22,375		$	98,613	$	84,569
Exempt from federal income tax		316		287		264			1,099		1,060
Investment securities
Taxable		1,009		995		1,043			3,972		4,776
Exempt from federal income tax		60		59		59			236		229
Interest-bearing deposits with other institutions		46		51		81			205		312
Other dividend income		337		349		220			1,248		918
TOTAL INTEREST AND DIVIDEND INCOME		28,042		27,415		24,042			105,373		91,864
INTEREST EXPENSE
Deposits		8,768		8,579		8,828			33,644		33,376
Borrowings		3,425		3,536		2,420			13,326		9,458
TOTAL INTEREST EXPENSE		12,193		12,115		11,248			46,970		42,834
NET INTEREST INCOME		15,849		15,300		12,794			58,403		49,030
Provision for credit losses		393		781		(142	)		1,803		1,103
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES		15,456		14,519		12,936			56,600		47,927
NONINTEREST INCOME
Service fees on deposit accounts		744		739		673			2,840		2,528
Equity securities gains (losses), net		23		84		(131	)		72		(74	)
Gain on sale of loans, net		155		148		130			513		447
Earnings on Bank-owned life insurance		190		213		183			847		721
Insurance commissions		680		888		680			3,248		3,099
Travel agency commissions		30		51		73			130		185
Wealth management		872		1,163		820			3,540		3,321
Benefits consulting		169		159		155			655		640
Other		606		573		329			1,821		1,264
TOTAL NONINTEREST INCOME		3,469		4,018		3,304			13,666		12,523
NONINTEREST EXPENSE
Salaries and employee benefits		7,602		7,186		6,490			28,785		25,518
Occupancy and equipment		1,066		1,144		1,050			4,462		4,112
Data processing		1,274		1,365		1,259			5,373		4,787
Professional fees		166		217		235			836		767
Advertising		263		149		110			704		464
Federal deposit insurance		394		387		343			1,537		1,295
Other		1,381		1,783		1,760			6,481		5,987
TOTAL NONINTEREST EXPENSE		12,146		12,231		11,247			48,178		42,930
INCOME BEFORE INCOME TAXES		6,779		6,306		4,993			22,088		17,520
Income taxes		1,255		1,153		873			3,963		3,000
NET INCOME	$	5,525	$	5,153	$	4,120		$	18,125	$	14,520
Earnings per share	$	1.84	$	1.72	$	1.39		$	6.25	$	5.13

ADDITIONAL FINANCIAL INFORMATION
(Dollars and shares in thousands except per share amounts)(Unaudited)
	Three Months Ended									Twelve Months Ended
	Dec. 31, 2025			Sep. 30, 2025			Dec. 31, 2024			Dec. 31, 2025			Dec. 31, 2024
PERFORMANCE MEASURES AND RATIOS
Return on average common equity		16.55	%		15.80	%		13.56	%		14.12	%		12.23	%
Return on average assets		1.13	%		1.09	%		0.97	%		0.98	%		0.89	%
Efficiency ratio		64.18	%		65.98	%		69.25	%		68.57	%		71.02	%
Net interest margin		3.41	%		3.43	%		3.23	%		3.37	%		3.25	%
	Three Months Ended									Twelve Months Ended
	Dec. 31, 2025			Sep. 30, 2025			Dec. 31, 2024			Dec. 31, 2025			Dec. 31, 2024
AVERAGE BALANCES
Average assets	$	1,936,821		$	1,865,172		$	1,671,984		$	1,830,168		$	1,606,005
Average earning assets		1,840,341			1,766,641			1,574,978			1,731,963			1,508,076
Average total loans		1,664,328			1,593,790			1,398,480			1,559,218			1,320,145
Average deposits		1,441,237			1,372,083			1,295,387			1,354,477			1,244,221
Average common equity		129,170			124,436			115,103			123,688			110,572
	Dec. 31, 2025			Sep. 30, 2025			Dec. 31, 2024
EQUITY ANALYSIS
Total common equity	$	131,390		$	122,278		$	116,751
Common stock outstanding		3,023,690			3,023,690			3,022,127
Book value per share	$	41.51		$	39.76		$	35.98
Tangible book value per share	$	40.14		$	38.38		$	34.58
ASSET QUALITY
Nonaccrual loans	$	532		$	509		$	521
Loans 90 days past due and still accruing		114			96			201
Total nonperforming loans	$	646		$	605		$	722
Other real estate owned and other repossessed assets		-			-			-
Total nonperforming assets	$	646		$	605		$	722
Nonperforming loans/portfolio loans		0.04	%		0.04	%		0.05	%
Nonperforming assets/assets		0.03	%		0.03	%		0.04	%
Allowance for credit losses	$	10,974		$	10,776		$	8,906
Allowance for credit losses/portfolio loans		0.65	%		0.65	%		0.63	%
Allowance for credit losses/nonperforming loans		1698.76	%		1781.16	%		1233.52	%
Net loan (recoveries) charge-offs for the quarter	$	6		$	(90	)	$	(262	)
	Dec. 31, 2025			Sep. 30, 2025			Dec. 31, 2024
KISH BANK
Tier 1 leverage ratio		8.84	%		8.92	%		9.02	%
Tier 1 capital ratio		9.84	%		9.79	%		9.92	%
Total capital ratio		10.57	%		10.51	%		10.62	%
	Dec. 31, 2025			Sep. 30, 2025			Dec. 31, 2024
INTEREST SPREAD ANALYSIS
Yield on total loans		6.35	%		6.48	%		6.46	%
Yield on investments		2.54	%		2.57	%		2.60	%
Yield on interest earning deposits		3.26	%		3.50	%		5.02	%
Yield on earning assets		6.03	%		6.14	%		6.06	%
Cost of interest-bearing deposits		2.80	%		2.88	%		3.12	%
Cost of total deposits		2.41	%		2.48	%		2.71	%
Cost of borrowings		3.96	%		4.05	%		4.07	%
Cost of interest-bearing liabilities		3.05	%		3.14	%		3.29	%
Cost of funds		2.71	%		2.80	%		2.92	%