Kish Bancorp, Inc. Reports Net Income of $4.1 Million in the Fourth Quarter of 2024 and $14.5 Million for the Year 2024

Rhea-AI Summary

Kish Bancorp (OTCQX: KISB) reported Q4 2024 net income of $4.1 million ($1.39 per share), compared to $4.2 million in Q3 2024 and $3.5 million in Q4 2023. Full-year 2024 net income reached $14.5 million, up 7.6% from 2023.

Key financial highlights include: Total assets increased 9.7% to $1.7 billion, total loans grew 15.5% to $1.4 billion, and deposits rose 10.1% year-over-year. The company maintained strong capital ratios with Tier 1 leverage at 9.02%, Tier 1 capital at 9.92%, and Total risk-based capital at 10.62%.

The bank's credit quality remained strong with an allowance for credit losses at 1233.52% of nonperforming loans. The company completed a $10 million term debt issuance in Q4 2024 and declared a quarterly dividend of $0.39 per share.

Positive

• Net income increased 7.6% year-over-year to $14.5 million in 2024
• Total loans grew 15.5% year-over-year to $1.4 billion
• Total deposits increased 10.1% year-over-year
• Net interest income before provision increased 13.3% in Q4 2024
• Noninterest income grew 14.4% in Q4 2024
• Wealth Management division revenue increased 30.5% to $3.3 million
• Strong credit quality with net loan recoveries of $262 thousand in Q4

Negative

• Net interest margin contracted to 3.23% from 3.37% year-over-year
• Noninterest-bearing deposits decreased 5.9% year-over-year
• Cost of deposits increased to 2.71% from 2.50% year-over-year
• Noninterest expense increased 19.3% in Q4 2024
• Efficiency ratio increased to 71.0% from 70.2% year-over-year

STATE COLLEGE, Pa.--(BUSINESS WIRE)-- Kish Bancorp, Inc. (OTCQX: KISB) (“Kish” or the “Company”), parent company of Kish Bank, reported net income of $4.1 million, or $1.39 per share, for the fourth quarter of 2024, compared to $4.2 million, or $1.41 per share, for the third quarter of 2024, and $3.5 million, or $1.22 per share, for the fourth quarter of 2023. For the year ended December 31, 2024, net income was $14.5 million, an increase of $1.0 million, or 7.6%, compared to $13.5 million for 2023. Earnings per share were $4.92 for the year 2024, compared to $5.22 in 2023. All results are unaudited.

Results for the fourth quarter of 2024 benefited from a $142 thousand negative provision. This compared to a $665 thousand provision expense in the third quarter of 2024, and a $575 thousand provision expense in the fourth quarter of 2023. The reversal to the provision for credit losses during the fourth quarter of 2024 was primarily due to a $285 thousand net loan recovery during the quarter, as well as pristine credit quality and improved economic indicators within the Company’s CECL accounting model.

“Kish delivered strong earnings for the fourth quarter and record profits for the year 2024, generated by solid revenue generation and double digit loan and deposit growth,” stated William P. Hayes, Executive Chairman. “The increase in net interest income during the fourth quarter compared to the year ago quarter was primarily driven by new loan growth. While the recent Fed rate cuts put some pressure on our net interest margin and our earning assets yields during the quarter, we anticipate improvement in future quarters as our cost of funds adjust downward driven by lower competitive market rates. Looking ahead, we will continue to focus on growing our core deposit franchise by expanding into new markets, capturing market share in our existing markets, and obtaining operational leverage through enhanced technology systems. Our earnings momentum for 2025 is strong, and we have the right team in place to continue to grow and be the best community bank in the markets we serve.”

“In 2024 we executed several growth initiatives to reach our customers and expand our deposit franchise,” said Gregory T. Hayes, President and CEO. “During the spring of 2024 we officially launched ATM + Live Banker, our newest transformative banking solution, at eight locations in Centre, Blair, Huntingdon, and Juniata Counties. ATM + Live Banker is a convenient banking solution that allows customers to perform full-service transactions with a live, local Kish Bank teller via video during expanded hours through our new ATM machines. While other banks are closing branches and eliminating access to people, we are expanding access to our customers. We continue to look for innovative, cost effective ways to reach our customers and grow our business, and ATM + Live Banker is just the start.”

Fourth Quarter 2024 Financial Highlights:

• Total assets increased $149.8 million, or 9.7%, to $1.7 billion at December 31, 2024, compared to $1.5 billion a year ago.
• Total loans grew by $191.1 million, or 15.5%, year over year to $1.4 billion, compared to $1.2 billion a year ago.
• Total deposits increased $119.0 million year over year, or 10.1%, as Kish Bank continued to attract new client relationships.
• Fourth quarter net interest income, before provision, increased $1.5 million, or 13.3%, compared to the fourth quarter a year ago.
• Noninterest income increased $416 thousand, or 14.4%, compared to the year ago quarter.
• Fourth quarter net interest margin contracted 14 basis points from the fourth quarter a year ago to 3.23%.
• Continued strong fourth quarter ROE of 13.56% and ROA of 0.97%.
• Tangible book value per share increased 2.1% to $34.58, compared to $33.86 a year ago.
• Paid a $0.39 per share quarterly cash dividend on October 31, 2024, to shareholders of record as of October 15, 2024, which was a $0.02 per share increase over the prior quarter.
• At December 31, 2024, Kish Bank continued to exceed regulatory well-capitalized requirements with a Tier 1 leverage ratio of 9.02%, a Tier 1 capital ratio of 9.92% and a Total risk-based capital ratio of 10.62%.

Balance Sheet

“Loan growth had another strong quarter, with total loans outstanding up by $191.1 million, or 15.5%, year over year, and up $52.0 million, or 3.8% 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 $55.4 million, or 34.5%, and multifamily loans of $43.8 million, or 25.1%. Also noteworthy, Kish continues to have negligible exposure to loans in nonowner-occupied commercial office space categories.”

Total assets ended the quarter at $1.7 billion, an increase of $149.8 million, or 9.7%, compared to $1.5 billion as of December 31, 2023. Investment securities decreased to $163.1 million, a decrease of $29.5 million from December 31, 2023. Average earning assets increased to $1.6 billion in the fourth quarter of 2024, compared to $1.4 billion in the fourth quarter of 2023. The average yield on interest-earning assets was 6.06% in the fourth quarter of 2024, down five basis points from 6.11% in the fourth quarter a year ago.

Total deposits grew by $119.0 million year over year to $1.3 billion, an increase of 10.1% from $1.2 billion a year ago. At December 31, 2024, noninterest-bearing demand deposit accounts decreased 5.9% compared to a year ago, while interest-bearing deposits increased 13.0% compared to a year ago. Brokered deposits decreased $18.1 million during the fourth quarter compared to the preceding quarter to $90.1 million at December 31, 2024. The cost of total deposits was 2.71% in the fourth quarter of 2024, compared to 2.50% in the fourth quarter of 2023.

Stockholders’ equity increased 14.4% to $106.1 million at December 31, 2024, compared to $92.8 million a year earlier. At December 31, 2024, the Company’s tangible book value increased 2.1% to $34.58 per share compared to $33.86 at December 31, 2023.

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 9.02%, a Tier 1 capital ratio of 9.92% and a Total capital ratio of 10.62% at December 31, 2024.

Operating Results

In the fourth quarter of 2024, Kish generated a return on average common equity of 13.56% and a return on average assets of 0.97%, compared to 12.16% and 0.91%, respectively, in the fourth quarter a year ago. For the year, the return on average common equity was 12.23% and return on average assets was 0.89%, compared to 13.02% and 0.94%, respectively, for 2023.

Net interest income, before the provision for credit losses, increased 13.3% to $12.8 million in the fourth quarter of 2024, compared to $11.3 million in the fourth quarter a year ago. For the year, net interest income before the provision for credit losses increased $5.4 million, or 12.4% year over year, indicating a well-balanced net interest margin. 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.

The Company’s net interest margin was 3.23% in the fourth quarter of 2024, compared to 3.30% in the preceding quarter and 3.37% in the fourth quarter of 2023. For the year, the net interest margin was 3.25%, compared to 3.31% in the year-ago period.

Primarily due to net loan recoveries, strong credit quality, and improved economic adjustments within the Company’s CECL accounting model, the Company recorded a $142 thousand reversal to its provision for credit losses in the fourth quarter of 2024. This compared to a $665 thousand provision for credit losses in the third quarter of 2024, and a $575 thousand provision for credit losses in the fourth quarter of 2023.

Fourth quarter noninterest income increased 14.4% to $3.3 million, compared to $2.9 million in the fourth quarter a year ago. Noninterest income for the year increased by 10.1% compared to 2023, led by strong results from Kish’s Wealth Management division, which expanded by $776 thousand to $3.3 million, a 30.5% increase over 2023. Also contributing to noninterest income was gains in sales from the equity portfolio of $392 thousand. These gains were offset to some extent by lower interest rate swap fees, which were impacted by the current level of market interest rates.

Noninterest expense increased $1.8 million, or 19.3%, to $11.2 million in the fourth quarter of 2024, compared to $9.4 million in the fourth quarter of 2023. For the year, noninterest expense increased $4.8 million, or 12.6%, to $42.9 million in 2024, compared to $38.1 million in 2023. 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 fourth quarter of 2024 was 69.3%, compared to 67.9% for the preceding quarter and 69.3% for the fourth quarter of 2023. For the year, the efficiency ratio was 71.0% compared to 70.2% 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 fourth quarter of 2024, the Company recorded $873 thousand in state and federal income tax expense for an effective tax rate of 17.5%, compared to $702 thousand, or 16.8%, in the fourth quarter a year ago. For the year 2024, the Company recorded $3.0 million in state and federal income tax expense for an effective rate of 17.1%, compared to $2.7 million, or 16.4%, in 2023.

Credit Quality

The allowance for credit losses represented 1233.52% of nonperforming loans at December 31, 2024, compared to 1565.20% a year earlier. Nonperforming loans were $722 thousand, or 0.05% of total loans, at December 31, 2024, compared to $569 thousand, or 0.05% of total loans, a year earlier.

Net loan recoveries totaled $262 thousand in the fourth quarter of 2024, compared to $39 thousand in net loan charge-offs in the fourth quarter a year ago. The allowance for credit losses was $8.9 million, or 0.63% of total loans, at December 31, 2024, compared $7.5 million, or 0.61% of total loans, a year ago.

Dividend

On January 2, 2025, the Board of Directors declared a quarterly dividend in the amount of $0.39 per share, payable January 31, 2025, to shareholders of record as of January 15, 2025, which was unchanged from the prior quarter. The current dividend represents an annualized yield of 4.46% based on receipt market prices. Kish has paid uninterrupted dividends since 1987, with a dividend increase every year for the prior nine consecutive years.

Recent Events

During the fourth quarter of 2024, the company completed the issuance of $10.0 million in term debt with a $3 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)
	Dec. 31, 2024				Sep. 30, 2024				Dec. 31, 2023
ASSETS
Cash and due from banks	$	13,920			$	16,172			$	13,289
Interest-bearing deposits with other institutions		3,297				5,400				16,449
Cash and cash equivalents		17,217				21,572				29,738
Certificates of deposit on other financial institutions		-				-				245
Investment securities available for sale		151,328				169,473				178,978
Equity securities		2,378				2,594				2,713
Investment securities held to maturity		9,406				11,001				10,892
Loans held for sale		786				2,566				663
Loans		1,424,000				1,372,000				1,232,862
Less allowance for credit losses		8,906				8,715				7,545
Net Loans		1,415,094				1,363,285				1,225,317
Premises and equipment		27,534				27,557				27,398
Goodwill		3,512				3,561				3,561
Regulatory stock		8,330				8,361				9,772
Bank-owned life insurance		25,032				24,846				24,302
Accrued interest and other assets		31,933				29,979				29,197
TOTAL ASSETS	$	1,692,550			$	1,664,795			$	1,542,776
LIABILITIES
Noninterest-bearing deposits		171,361				175,998				182,036
Interest-bearing deposits		1,126,709				1,120,486				997,034
Total Deposits		1,298,070				1,296,484				1,179,070
Borrowings		252,635				233,308				235,960
Accrued interest and other liabilities		35,734				30,665				34,981
TOTAL LIABILITIES		1,586,439				1,560,457				1,450,011
STOCKHOLDERS' EQUITY
Common stock, $0.50 per value; 8,000,000 shares authorized, 3,022,127, 3,022,127 and 2,885,941 issued		1,511				1,511				1,480
Additional paid-in capital		12,840				14,158				10,891
Retained earnings		106,979				104,016				96,878
Accumulated other comprehensive income		(13,623	)			(12,093	)			(14,000	)
Treasury stock, at cost (56,900, 56,900 and 79,505 shares)		(1,596	)			(3,254	)			(2,484	)
TOTAL STOCKHOLDERS' EQUITY		106,111				104,338				92,765
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY	$	1,692,550			$	1,664,795			$	1,542,776

CONSOLIDATED STATEMENT OF INCOME
(Unaudited; in thousands)
		Three Months Ended										Twelve Months Ended
		Dec. 31, 2024				Sep. 30, 2024			Dec. 31, 2023			Dec. 31, 2024				Dec. 31, 2023
INTEREST AND DIVIDEND INCOME
Interest and fees on loans:
Taxable		$	22,375			$	22,099		$	18,674		$	84,569			$	65,808
Exempt from federal income tax			264				277			228			1,060				811
Investment securities
Taxable			1,043				1,229			1,301			4,776				5,182
Exempt from federal income tax			59				58			50			229				204
Interest-bearing deposits with other institutions			81				62			122			312				456
Other dividend income			220				224			236			918				936
TOTAL INTEREST AND DIVIDEND INCOME			24,042				23,949			20,611			91,864				73,397
INTEREST EXPENSE
Deposits			8,828				8,849			6,861			33,376				21,124
Borrowings			2,420				2,346			2,456			9,458				8,646
TOTAL INTEREST EXPENSE			11,248				11,195			9,317			42,834				29,770
NET INTEREST INCOME			12,794				12,754			11,294			49,030				43,627
Provision for credit losses			(142	)			665			575			1,103				711
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES			12,936				12,089			10,719			47,927				42,916
NONINTEREST INCOME
Service fees on deposit accounts			673				652			596			2,528				2,340
Investment security gains, net			392				-			-			392				-
Equity securities (losses) gains, net			(131	)			263			259			(74	)			(145	)
Gain on sale of loans, net			130				135			85			447				340
Earnings on Bank-owned life insurance			183				183			173			721				647
Insurance commissions			680				810			659			3,099				3,061
Travel agency commissions			73				33			42			185				262
Wealth management			820				949			517			3,321				2,545
Benefits consulting			155				161			145			640				623
Other			329				509			412			1,264				1,698
TOTAL NONINTEREST INCOME			3,304				3,695			2,888			12,523				11,371
NONINTEREST EXPENSE
Salaries and employee benefits			6,490				6,435			5,157			25,518				22,198
Occupancy and equipment			1,050				1,030			993			4,112				3,897
Data processing			1,259				1,234			1,107			4,787				4,185
Professional fees			235				175			229			767				784
Advertising			110				123			164			464				623
Federal deposit insurance			343				319			498			1,295				1,135
Other			1,760				1,402			1,279			5,987				5,311
TOTAL NONINTEREST EXPENSE			11,247				10,718			9,427			42,930				38,133
INCOME BEFORE INCOME TAXES			4,993				5,066			4,180			17,520				16,154
Income taxes			873				896			702			3,000				2,654
NET INCOME		$	4,120			$	4,170		$	3,478		$	14,520			$	13,500
Earnings per share		$	1.39			$	1.41		$	1.22		$	4.92			$	5.22

ADDITIONAL FINANCIAL INFORMATION
(Dollars and shares in thousands except per share amounts)(Unaudited)
		Three Months Ended												Twelve Months Ended
		Dec. 31, 2024				Sep. 30, 2024				Dec. 31, 2023				Dec. 31, 2024				Dec. 31, 2023
PERFORMANCE MEASURES AND RATIOS
Return on average common equity			13.56	%			13.89	%			12.16	%			12.23	%			13.02	%
Return on average assets			0.97	%			1.01	%			0.91	%			0.89	%			0.94	%
Efficiency ratio			69.25	%			67.91	%			69.28	%			71.02	%			70.24	%
Net interest margin			3.23	%			3.30	%			3.37	%			3.25	%			3.31	%
		Three Months Ended												Twelve Months Ended
		Dec. 31, 2024				Sep. 30, 2024				Dec. 31, 2023				Dec. 31, 2024				Dec. 31, 2023
AVERAGE BALANCES
Average assets		$	1,671,984			$	1,634,071			$	1,494,264			$	1,606,005			$	1,413,050
Average earning assets			1,574,978				1,534,946				1,393,417				1,508,076				1,315,855
Average total loans			1,398,480				1,346,713				1,195,172				1,320,145				1,113,252
Average deposits			1,295,387				1,271,823				1,140,980				1,244,221				1,085,049
Average common equity			115,103				112,093				101,882				110,572				93,448
		Dec. 31, 2024				Sep. 30, 2024				Dec. 31, 2023
EQUITY ANALYSIS
Total common equity		$	116,751			$	113,680			$	104,476
Common stock outstanding			3,022,127				3,022,127				2,960,591
Book value per share		$	35.98			$	35.46			$	35.28
Tangible book value per share		$	34.58			$	34.04			$	33.86
ASSET QUALITY
Nonaccrual loans		$	521			$	501			$	430
Loans 90 days past due and still accruing			201				179				139
Total nonperforming loans		$	722			$	680			$	569
Other real estate owned and other repossessed assets			-				-				-
Total nonperforming assets		$	722			$	680			$	569
Nonperforming loans/portfolio loans			0.05	%			0.05	%			0.05	%
Nonperforming assets/assets			0.04	%			0.04	%			0.04	%
Allowance for credit losses		$	8,906			$	8,715			$	7,545
Allowance for credit losses/portfolio loans			0.63	%			0.64	%			0.61	%
Allowance for credit losses/nonperforming loans			1233.52	%			1281.62	%			1565.20	%
Net loan (recoveries) charge-offs for the quarter		$	(262	)		$	(30	)		$	39
		Dec. 31, 2024				Sep. 30, 2024				Dec. 31, 2023
KISH BANK
Tier 1 leverage ratio			9.02	%			9.00	%			8.94	%
Tier 1 capital ratio			9.92	%			9.95	%			9.96	%
Total capital ratio			10.62	%			10.66	%			10.65	%
		Dec. 31, 2024				Sep. 30, 2024				Dec. 31, 2023
INTEREST SPREAD ANALYSIS
Yield on total loans			6.46	%			6.63	%			6.65	%
Yield on investments			2.60	%			2.82	%			2.82	%
Yield on interest earning deposits			5.02	%			4.64	%			4.89	%
Yield on earning assets			6.06	%			6.19	%			6.11	%
Cost of interest-bearing deposits			3.12	%			3.21	%			2.97	%
Cost of total deposits			2.71	%			2.77	%			2.50	%
Cost of borrowings			4.07	%			4.14	%			4.37	%
Cost of interest-bearing liabilities			3.29	%			3.37	%			3.24	%
Cost of funds			2.92	%			2.98	%			2.81	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250116404928/en/

Mark J. Cvrkel, EVP, Treasurer and Chief Financial Officer, 814-325-7346

Source: Kish Bancorp, Inc.

FAQ

What was Kish Bancorp's (KISB) net income for Q4 2024?

Kish Bancorp reported net income of $4.1 million ($1.39 per share) for Q4 2024.

How much did KISB's total loans grow in 2024?

Total loans grew by $191.1 million, or 15.5% year-over-year, reaching $1.4 billion.

What was KISB's dividend payment for Q4 2024?

KISB declared a quarterly dividend of $0.39 per share, payable January 31, 2025.

How much debt did KISB issue in Q4 2024?

KISB completed the issuance of $10.0 million in term debt with a $3 million line through a private placement offering.

What was KISB's net interest margin in Q4 2024?

The net interest margin was 3.23% in Q4 2024, compared to 3.37% in Q4 2023.