ccInc., 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.
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