Kish Bancorp, Inc. (OTCQX: KISB) (“Kish” or the “Company”), parent company of Kish Bank, reported net income of $3.8 million, or $1.28 per share, for the second quarter of 2025, compared to $3.6 million, or $1.21 per share, for the first quarter of 2025, and $3.1 million, or $1.06 per share, for the second quarter of 2024. For the first six months of 2025, net income was $7.4 million, or $2.50 per share, compared to $6.2 million, or $2.12 per share, for the six-month period in 2024. All results are unaudited.

Results for the second quarter of 2025 included a $470 thousand provision for credit losses, compared to a $159 thousand provision expense in the first quarter of 2025, and a $467 thousand provision expense in the second quarter of 2024. The increase to the provision for credit losses during the second quarter of 2025 was primarily driven by growth in the commercial loan portfolio, and not due to any decline in loan quality, which continues to remain exceptionally strong.

“Our second quarter performance continued the strong momentum we established earlier in the year, delivering meaningful value to our shareholders through exceptional loan and deposit growth and net interest margin expansion,” stated William P. Hayes, Executive Chairman. “The increase in net interest income, driven primarily by new loan activity, contributed to improved profitability compared to the same quarter last year. As expected, our net interest margin expanded both quarter over quarter and year over year, supported by a reduction in our cost of funds amid easing competitive market rates, and a slight increase in earning asset yields. Looking ahead, we remain confident that our unwavering commitment to clients will continue to set Kish apart as we pursue new opportunities and navigate evolving market conditions.”

“A year ago, we implemented a strategy focused on technology investments aimed at improving service delivery and boosting operational efficiency as the organization continues to grow,” said Gregory T. Hayes, President and CEO. “Included in this was the launch of ATM + Live Banker, an innovative product that allows us the opportunity to enter smaller rural markets adjacent to our primary markets at a fraction of the cost of a full service branch. This initiative reflects our ongoing commitment to innovation, customer-centric growth, and long-term value creation. Supported by the strength of our financial performance, we remain well-positioned to invest in forward-looking solutions that reinforce our leadership in community banking and deliver sustainable returns for our shareholders.”

Second Quarter 2025 Financial Highlights:

• Net income was $3.8 million, or $1.28 per share, for the second quarter of 2025, compared to $3.6 million, or $1.21 per share, for the first quarter of 2025, and $3.1 million, or $1.06 per share, for the second quarter of 2024.
• Total assets increased $222.9 million, or 13.8%, to $1.8 billion at June 30, 2025, compared to $1.6 billion a year ago.
• Total loans grew by $234.4 million, or 17.8%, year over year to $1.6 billion, compared to $1.3 billion a year ago.
• Total deposits increased $88.8 million year over year, or 7.0%, to $1.4 billion, as Kish Bank continued to attract new client relationships.
• Second quarter net interest income, before provision, increased $2.1 million, or 17.6%, compared to the second quarter a year ago.
• Noninterest income increased $497 thousand, or 19.1%, compared to the year ago quarter.
• Second quarter net interest margin expanded seven basis points from the second quarter a year ago to 3.36%.
• Continued strong second quarter ROE of 12.18% and ROA of 0.85%.
• Tangible book value per share increased 12.8% to $36.45, compared to $32.32 a year ago.
• Paid a $0.39 per share quarterly cash dividend on April 30, 2025, to shareholders of record as of April 15, 2025.
• At June 30, 2025, Kish Bank continued to exceed regulatory well-capitalized requirements with a Tier 1 leverage ratio of 8.91%, a Tier 1 capital ratio of 9.83%, and a Total risk-based capital ratio of 10.53%.

Balance Sheet

“We continued to see strong momentum in loan growth this quarter, with total loans outstanding increasing by $234.4 million, or 17.8%, compared to the same period last year, and rising $58.3 million, or 3.9%, over the prior quarter,” said President and CEO Hayes. “Growth was well-distributed across multiple loan categories, with the most notable contributions coming from construction loans, which grew by $37.7 million, or 21.4%; multifamily loans, which increased by $46.5 million, or 22.0%; and nonfarm nonresidential loans, which grew by $67.7 million, or 22.2%. The increase in loans during the second quarter was aided by a decrease in CRE loan payoffs, which we anticipate will resume during the third quarter of 2025.”

Total assets ended the quarter at $1.8 billion, an increase of $222.9 million, or 13.8%, compared to $1.6 billion as of June 30, 2024. Investment securities decreased to $166.3 million, a decrease of $17.3 million from June 30, 2024. Average earning assets increased to $1.7 billion in the second quarter of 2025, compared to $1.5 billion in the second quarter of 2024. The average yield on interest-earning assets was 6.10% in the second quarter of 2025, up one basis point from 6.09% in the second quarter a year ago.

Total deposits grew by $88.8 million year over year to $1.4 billion, an increase of 7.0% from $1.3 billion a year ago. At June 30, 2025, noninterest-bearing demand deposit accounts increased 2.3% compared to a year ago, while interest-bearing deposits increased 7.8% compared to a year ago. Brokered deposits increased $8.2 million during the second quarter compared to the preceding quarter to $94.9 million at June 30, 2025. The cost of total deposits improved to 2.48% in the second quarter of 2025, compared to 2.69% in the second quarter of 2024.

Stockholders’ equity increased 14.5% to $113.3 million at June 30, 2025, compared to $99.0 million a year earlier. At June 30, 2025, the Company’s tangible book value increased 12.8% to $36.45 per share, compared to $32.32 at June 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 8.91%, a Tier 1 capital ratio of 9.83%, and a Total capital ratio of 10.53% at June 30, 2025.

Operating Results

Kish generated a return on average common equity of 12.18% and a return on average assets of 0.85%, in the second quarter of 2025, compared to 10.54% and 0.79%, respectively, in the second quarter a year ago. Year-to-date, the return on average common equity was 11.93% and return on average assets was 0.85%, compared to 10.68% and 0.79%, respectively, in the same period in 2024.

Net interest income, before the provision for credit losses, increased 17.6% to $14.2 million in the second quarter of 2025, compared to $12.1 million in the second quarter a year ago. In the first six months of the year, net interest income before the provision for credit losses increased $3.8 million, or 16.1% year over year, reflecting a stable and well-managed net interest margin. The Company’s net interest margin was 3.36% in the second quarter of 2025, compared to 3.26% in the preceding quarter and 3.29% in the second quarter of 2024. The resulting improvement 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. In the first six months of the year, the net interest margin expanded seven basis points to 3.30%, compared to 3.23% in the year-ago period.

Primarily due to loan growth, the Company recorded a $470 thousand provision for credit losses in the second quarter of 2025. This compared to a $159 thousand provision for credit losses in the first quarter of 2025, and a $467 thousand provision for credit losses in the second quarter of 2024.

Second quarter noninterest income increased 19.1% to $3.1 million, compared to $2.6 million in the second quarter a year ago. Noninterest income for the six-month period increased by 11.9% compared to the same period in 2024, led by higher service fees on deposit accounts, as well as strong results from Kish’s Insurance Division.

Noninterest expense increased $1.8 million, or 17.1%, to $12.2 million in the second quarter of 2025, compared to $10.4 million in the second quarter of 2024. For the first six months of the year, noninterest expense increased $2.8 million, or 13.5%, to $23.8 million, compared to $21.0 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, higher operating expenses reflect deliberate strategic investments in technology infrastructure and workforce development, all key enablers of scalable growth and deepening customer engagement.

The efficiency ratio for the second quarter of 2025 was 72.5%, compared to 72.7% for the preceding quarter and 73.3% for the second quarter of 2024. Year-to-date, the efficiency ratio was 71.0%, compared to 73.8% 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 2025, the Company recorded $795 thousand in state and federal income tax expense for an effective tax rate of 17.2%, compared to $646 thousand, or 17.0%, in the second quarter a year ago. In the first six months of 2025, the Company recorded $1.6 million in state and federal income tax expense for an effective rate of 17.3%, compared to $1.2 million, or 16.5% in the year ago period.

Credit Quality

The allowance for credit losses represented 2,010.1% of nonperforming loans at June 30, 2025, compared to 1,582.8% a year earlier. Nonperforming loans were $506 thousand, or 0.03% of total loans, at June 30, 2025, compared to $641 thousand, or 0.05% of total loans, a year earlier.

Net loan recoveries totaled $88 thousand in the second quarter of 2025, compared to $5 thousand in net loan charge-offs in the second quarter a year ago. The allowance for credit losses was $10.2 million, or 0.65% of total loans, at June 30, 2025, compared to $8.1 million, or 0.61% of total loans, a year ago. The increase quarter over quarter included approximately $400 thousand of unallocated reserves.

Dividend

On July 1, 2025, the Board of Directors declared a quarterly dividend in the amount of $0.39 per share, payable July 31, 2025, to shareholders of record as of July 15, 2025, which was unchanged from the prior quarter. The current dividend represents an annualized yield of 4.33% 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.

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 20 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.

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