Kish Bancorp, Inc. Reports Net Income of $3.2 Million in the Second Quarter of 2024 and $6.2 Million in the First Six Months of 2024
Results for the second quarter of 2024 included a
“We started out the first half of the year strong, with robust loan growth, solid asset quality metrics, and diversified noninterest income streams contributing to year-to-date earnings,” stated
Second Quarter 2024 Financial Highlights:
-
Total assets increased
$187.8 million , or 13.2%, to$1.6 billion atJune 30, 2024 , compared to$1.4 billion a year ago. -
Total deposits increased
$178.6 million year over year, or 16.4%, asKish Bank continued to attract new client relationships. -
Net loans grew by
$202.9 million , or 18.3%, year over year to$1.3 billion . -
Second quarter net interest income, before provision, increased
$1.2 million , or 11.1%, compared to the second quarter a year ago. -
Noninterest income increased
$81 thousand , or 3.2%, compared to the year ago quarter. - Second quarter net interest margin expanded 11 basis points from the linked quarter to 3.29%.
- Continued strong second quarter ROE of 10.54% and ROA of 0.79%.
-
Tangible book value per share increased 8.7% to
$32.32 , compared to$29.73 a year ago. -
Paid a
$0.37 per share quarterly cash dividend onApril 30, 2024 , to shareholders of record as ofApril 15, 2024 . -
At
June 30, 2024 ,Kish Bank continued to exceed regulatory well-capitalized requirements with a Tier 1 leverage ratio of 9.00%, a Tier 1 capital ratio of 9.90% and a Total risk-based capital ratio of 10.59%.
Balance Sheet
“Loan growth was robust during the quarter, with total loans outstanding up by
Total assets ended the quarter at
Total deposits grew by
“The opening of Kish Bank’s first
Stockholders’ equity increased 25.8% to
Operating Results
In the second quarter of 2024, Kish generated a return on average common equity of 10.54% and a return on average assets of 0.79%, compared to 13.06% and 0.92%, respectively, in the second quarter a year ago. Year-to-date, the return on average common equity was 10.68% and return on average assets was 0.79%, compared to 13.38% and 0.95%, respectively, in the same period in 2023.
Net interest income, before the provision for credit losses, increased 11.1% to
The Company’s net interest margin was 3.29% in the second quarter of 2024, compared to 3.18% in the preceding quarter and 3.36% in the second quarter of 2023. In the first six months of the year, the net interest margin was 3.23%, compared to 3.42% in the year-ago period.
Largely due to adjustments dictated by the Company’s CECL accounting model and robust loan growth, the Company recorded a
Second quarter noninterest income increased 3.3% to
Noninterest expense increased
The efficiency ratio for the second quarter of 2024 was 73.3%, compared to 74.2% for the preceding quarter and 71.1% for the second quarter of 2023. Year-to-date, the efficiency ratio was 73.8% compared to 70.9% in the year ago period. The efficiency ratio includes the Company’s non-banking units which operate at higher expense levels than
In the second quarter of 2024, the Company recorded
Credit Quality
The allowance for credit losses represented 1535.7% of nonperforming loans at
Net loan charge-offs totaled
Dividend
On
About
In June of 2024,
Forward Looking Statements
Certain statements regarding
Consolidated Balance Sheet | ||||||||||||
(Unaudited; in thousands) | ||||||||||||
|
|
|
||||||||||
ASSETS | ||||||||||||
Cash and due from banks |
$ |
10,894 |
|
$ |
9,769 |
|
$ |
12,874 |
|
|||
Interest-bearing deposits with other institutions |
|
4,390 |
|
|
8,737 |
|
|
11,071 |
|
|||
Cash and cash equivalents |
|
15,284 |
|
|
18,506 |
|
|
23,945 |
|
|||
Certificates of deposit on other financial institutions |
|
245 |
|
|
245 |
|
|
245 |
|
|||
Investment securities available for sale |
|
170,363 |
|
|
171,744 |
|
|
179,919 |
|
|||
Equity securities |
|
2,395 |
|
|
2,452 |
|
|
2,506 |
|
|||
Investment securities held to maturity |
|
10,889 |
|
|
11,003 |
|
|
11,007 |
|
|||
Loans held for sale |
|
2,066 |
|
|
168 |
|
|
1,625 |
|
|||
Loans |
|
1,319,175 |
|
|
1,255,393 |
|
|
1,115,335 |
|
|||
Less allowance for credit losses |
|
8,086 |
|
|
7,580 |
|
|
7,157 |
|
|||
Net Loans |
|
1,311,089 |
|
|
1,247,813 |
|
|
1,108,178 |
|
|||
Premises and equipment |
|
27,103 |
|
|
27,118 |
|
|
27,022 |
|
|||
|
|
3,561 |
|
|
3,561 |
|
|
3,561 |
|
|||
Regulatory stock |
|
7,034 |
|
|
9,631 |
|
|
9,368 |
|
|||
Bank-owned life insurance |
|
24,661 |
|
|
24,480 |
|
|
23,965 |
|
|||
Accrued interest and other assets |
|
37,161 |
|
|
32,870 |
|
|
32,719 |
|
|||
TOTAL ASSETS |
$ |
1,611,851 |
|
$ |
1,549,591 |
|
$ |
1,424,060 |
|
|||
LIABILITIES | ||||||||||||
Noninterest-bearing deposits |
|
181,883 |
|
|
174,500 |
|
|
170,857 |
|
|||
Interest-bearing deposits |
|
1,088,087 |
|
|
1,017,586 |
|
|
920,520 |
|
|||
Total Deposits |
|
1,269,970 |
|
|
1,192,086 |
|
|
1,091,377 |
|
|||
Short-term borrowings |
|
168,000 |
|
|
185,619 |
|
|
169,400 |
|
|||
Other borrowings |
|
35,812 |
|
|
36,492 |
|
|
48,127 |
|
|||
Accrued interest and other liabilities |
|
39,096 |
|
|
38,629 |
|
|
36,485 |
|
|||
TOTAL LIABILITIES |
|
1,512,878 |
|
|
1,452,826 |
|
|
1,345,389 |
|
|||
STOCKHOLDERS' EQUITY | ||||||||||||
Common stock, |
|
1,511 |
|
|
1,508 |
|
|
1,349 |
|
|||
Additional paid-in capital |
|
14,101 |
|
|
13,905 |
|
|
3,856 |
|
|||
Retained earnings |
|
100,941 |
|
|
98,888 |
|
|
91,941 |
|
|||
Accumulated other comprehensive income |
|
(14,071 |
) |
|
(13,988 |
) |
|
(15,094 |
) |
|||
|
|
(3,509 |
) |
|
(3,548 |
) |
|
(3,381 |
) |
|||
TOTAL STOCKHOLDERS' EQUITY |
|
98,973 |
|
|
96,765 |
|
|
78,671 |
|
|||
TOTAL LIABILITIES AND | ||||||||||||
STOCKHOLDERS' EQUITY |
$ |
1,611,851 |
|
$ |
1,549,591 |
|
$ |
1,424,060 |
|
CONSOLIDATED STATEMENT OF INCOME | |||||||||||||||||||||
(Unaudited; in thousands) | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||
INTEREST AND DIVIDEND INCOME | |||||||||||||||||||||
Interest and fees on loans: | |||||||||||||||||||||
Taxable |
$ |
20,574 |
|
$ |
19,521 |
|
$ |
15,735 |
|
$ |
40,095 |
|
$ |
29,926 |
|
||||||
Exempt from federal income tax |
|
263 |
|
|
256 |
|
|
194 |
|
|
519 |
|
|
389 |
|
||||||
Investment securities | |||||||||||||||||||||
Taxable |
|
1,238 |
|
|
1,266 |
|
|
1,349 |
|
|
2,504 |
|
|
2,573 |
|
||||||
Exempt from federal income tax |
|
59 |
|
|
53 |
|
|
51 |
|
|
112 |
|
|
105 |
|
||||||
Interest-bearing deposits with other institutions |
|
80 |
|
|
89 |
|
|
105 |
|
|
169 |
|
|
235 |
|
||||||
Other dividend income |
|
222 |
|
|
252 |
|
|
292 |
|
|
474 |
|
|
502 |
|
||||||
TOTAL INTEREST AND DIVIDEND INCOME |
|
22,436 |
|
|
21,437 |
|
|
17,726 |
|
|
43,873 |
|
|
33,730 |
|
||||||
INTEREST EXPENSE | |||||||||||||||||||||
Deposits |
|
8,318 |
|
|
7,381 |
|
|
4,683 |
|
|
15,699 |
|
|
8,387 |
|
||||||
Short-term borrowings |
|
1,995 |
|
|
2,448 |
|
|
1,764 |
|
|
4,442 |
|
|
3,101 |
|
||||||
Other borrowings |
|
48 |
|
|
201 |
|
|
412 |
|
|
250 |
|
|
722 |
|
||||||
TOTAL INTEREST EXPENSE |
|
10,361 |
|
|
10,030 |
|
|
6,859 |
|
|
20,391 |
|
|
12,210 |
|
||||||
NET INTEREST INCOME |
|
12,075 |
|
|
11,407 |
|
|
10,867 |
|
|
23,482 |
|
|
21,520 |
|
||||||
Provision for credit losses |
|
467 |
|
|
113 |
|
|
149 |
|
|
580 |
|
|
85 |
|
||||||
NET INTEREST INCOME AFTER | |||||||||||||||||||||
PROVISION FOR CREDIT LOSSES |
|
11,608 |
|
|
11,294 |
|
|
10,718 |
|
|
22,902 |
|
|
21,435 |
|
||||||
NONINTEREST INCOME | |||||||||||||||||||||
Service fees on deposit accounts |
|
620 |
|
|
583 |
|
|
591 |
|
|
1,203 |
|
|
1,159 |
|
||||||
Equity securities (losses) gains, net |
|
(57 |
) |
|
(149 |
) |
|
(28 |
) |
|
(206 |
) |
|
(351 |
) |
||||||
Gain on sale of loans, net |
|
108 |
|
|
74 |
|
|
96 |
|
|
182 |
|
|
164 |
|
||||||
Earnings on Bank-owned life insurance |
|
179 |
|
|
176 |
|
|
155 |
|
|
355 |
|
|
313 |
|
||||||
Insurance commissions |
|
675 |
|
|
934 |
|
|
687 |
|
|
1,609 |
|
|
1,611 |
|
||||||
Travel agency commissions |
|
60 |
|
|
19 |
|
|
68 |
|
|
79 |
|
|
113 |
|
||||||
Wealth management |
|
612 |
|
|
940 |
|
|
499 |
|
|
1,552 |
|
|
1,233 |
|
||||||
Benefits consulting |
|
179 |
|
|
145 |
|
|
150 |
|
|
324 |
|
|
319 |
|
||||||
Other |
|
225 |
|
|
201 |
|
|
302 |
|
|
426 |
|
|
676 |
|
||||||
TOTAL NONINTEREST INCOME |
|
2,601 |
|
|
2,923 |
|
|
2,520 |
|
|
5,524 |
|
|
5,237 |
|
||||||
NONINTEREST EXPENSE | |||||||||||||||||||||
Salaries and employee benefits |
|
6,162 |
|
|
6,431 |
|
|
5,600 |
|
|
12,593 |
|
|
11,289 |
|
||||||
Occupancy and equipment |
|
1,025 |
|
|
1,007 |
|
|
947 |
|
|
2,032 |
|
|
1,884 |
|
||||||
Data processing |
|
1,157 |
|
|
1,137 |
|
|
993 |
|
|
2,294 |
|
|
1,949 |
|
||||||
Professional fees |
|
207 |
|
|
150 |
|
|
153 |
|
|
357 |
|
|
356 |
|
||||||
Advertising |
|
115 |
|
|
116 |
|
|
154 |
|
|
231 |
|
|
305 |
|
||||||
Federal deposit insurance |
|
341 |
|
|
292 |
|
|
208 |
|
|
633 |
|
|
403 |
|
||||||
Other |
|
1,410 |
|
|
1,414 |
|
|
1,360 |
|
|
2,825 |
|
|
2,724 |
|
||||||
TOTAL NONINTEREST EXPENSE |
|
10,417 |
|
|
10,547 |
|
|
9,415 |
|
|
20,965 |
|
|
18,910 |
|
||||||
INCOME BEFORE INCOME TAXES |
|
3,792 |
|
|
3,670 |
|
|
3,823 |
|
|
7,461 |
|
|
7,762 |
|
||||||
Income taxes |
|
646 |
|
|
585 |
|
|
611 |
|
|
1,231 |
|
|
1,235 |
|
||||||
NET INCOME |
$ |
3,146 |
|
$ |
3,085 |
|
$ |
3,212 |
|
$ |
6,230 |
|
$ |
6,527 |
|
ADDITIONAL FINANCIAL INFORMATION | |||||||||||||||||||||
(Dollars and shares in thousands except per share amounts)(Unaudited) | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||
PERFORMANCE MEASURES AND RATIOS | |||||||||||||||||||||
Return on average common equity |
|
10.54 |
% |
|
10.84 |
% |
|
13.06 |
% |
|
10.68 |
% |
|
13.38 |
% |
||||||
Return on average assets |
|
0.79 |
% |
|
0.80 |
% |
|
0.92 |
% |
|
0.79 |
% |
|
0.95 |
% |
||||||
Efficiency ratio |
|
73.32 |
% |
|
74.19 |
% |
|
71.12 |
% |
|
73.75 |
% |
|
70.90 |
% |
||||||
Net interest margin |
|
3.29 |
% |
|
3.18 |
% |
|
3.36 |
% |
|
3.23 |
% |
|
3.42 |
% |
||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||
AVERAGE BALANCES | |||||||||||||||||||||
Average assets |
$ |
1,578,036 |
|
$ |
1,538,898 |
|
$ |
1,389,321 |
|
$ |
1,558,467 |
|
$ |
1,362,588 |
|
||||||
Average earning assets |
|
1,477,644 |
|
|
1,443,705 |
|
|
1,295,840 |
|
|
1,460,675 |
|
|
1,268,564 |
|
||||||
Average total loans |
|
1,288,486 |
|
|
1,245,749 |
|
|
1,085,807 |
|
|
1,267,117 |
|
|
1,062,424 |
|
||||||
Average deposits |
|
1,243,367 |
|
|
1,165,442 |
|
|
1,060,893 |
|
|
1,204,405 |
|
|
1,054,002 |
|
||||||
Average common equity |
|
107,134 |
|
|
105,932 |
|
|
87,862 |
|
|
105,412 |
|
|
87,176 |
|
||||||
|
|
|
|||||||||||||||||||
EQUITY ANALYSIS | |||||||||||||||||||||
Total common equity |
$ |
110,281 |
|
$ |
107,977 |
|
$ |
91,347 |
|
||||||||||||
Common stock outstanding |
|
3,022,127 |
|
|
3,015,877 |
|
|
2,697,000 |
|
||||||||||||
Book value per share |
$ |
33.75 |
|
$ |
33.30 |
|
$ |
29.80 |
|
||||||||||||
Tangible book value per share |
$ |
32.32 |
|
$ |
31.85 |
|
$ |
29.73 |
|
||||||||||||
ASSET QUALITY | |||||||||||||||||||||
Nonaccrual loans |
$ |
599 |
|
$ |
567 |
|
$ |
487 |
|
||||||||||||
Loans 90 days past due and still accruing |
|
42 |
|
|
103 |
|
|
163 |
|
||||||||||||
Total nonperforming loans |
$ |
641 |
|
$ |
670 |
|
$ |
650 |
|
||||||||||||
Other real estate owned and other repossessed assets |
|
- |
|
|
- |
|
|
- |
|
||||||||||||
Total nonperforming assets |
$ |
641 |
|
$ |
670 |
|
$ |
650 |
|
||||||||||||
Nonperforming loans/portfolio loans |
|
0.05 |
% |
|
0.05 |
% |
|
0.06 |
% |
||||||||||||
Nonperforming assets/assets |
|
0.04 |
% |
|
0.04 |
% |
|
0.05 |
% |
||||||||||||
Allowance for credit losses |
$ |
8,086 |
|
$ |
7,580 |
|
$ |
7,157 |
|
||||||||||||
Plus: Reserve for undisbursed loan commitments |
|
1,758 |
|
|
1,801 |
|
|
1,544 |
|
||||||||||||
Total allowance for credit losses |
$ |
9,844 |
|
$ |
9,381 |
|
$ |
8,701 |
|
||||||||||||
Allowance for credit losses/portfolio loans |
|
0.75 |
% |
|
0.75 |
% |
|
0.78 |
% |
||||||||||||
Allowance for credit losses/nonperforming loans |
|
1535.73 |
% |
|
1400.15 |
% |
|
1338.62 |
% |
||||||||||||
Net loan (recoveries) charge-offs for the quarter |
$ |
5 |
|
$ |
20 |
|
$ |
2 |
|
||||||||||||
|
|
|
|||||||||||||||||||
|
|||||||||||||||||||||
Tier 1 leverage ratio |
|
9.00 |
% |
|
8.96 |
% |
|
8.75 |
% |
||||||||||||
Tier 1 capital ratio |
|
9.90 |
% |
|
10.00 |
% |
|
10.04 |
% |
||||||||||||
Total capital ratio |
|
10.59 |
% |
|
10.68 |
% |
|
10.76 |
% |
||||||||||||
|
|
|
|||||||||||||||||||
INTEREST SPREAD ANALYSIS | |||||||||||||||||||||
Yield on total loans |
|
6.52 |
% |
|
6.40 |
% |
|
5.90 |
% |
||||||||||||
Yield on investments |
|
2.88 |
% |
|
2.84 |
% |
|
2.84 |
% |
||||||||||||
Yield on interest earning deposits |
|
8.65 |
% |
|
8.08 |
% |
|
8.90 |
% |
||||||||||||
Yield on earning assets |
|
6.09 |
% |
|
5.96 |
% |
|
5.47 |
% |
||||||||||||
Cost of interest-bearing deposits |
|
3.13 |
% |
|
2.97 |
% |
|
2.13 |
% |
||||||||||||
Cost of total deposits |
|
2.69 |
% |
|
2.55 |
% |
|
1.77 |
% |
||||||||||||
Cost of borrowings |
|
4.17 |
% |
|
4.42 |
% |
|
4.02 |
% |
||||||||||||
Cost of interest-bearing liabilities |
|
3.29 |
% |
|
3.25 |
% |
|
2.51 |
% |
||||||||||||
Cost of funds |
|
2.89 |
% |
|
2.87 |
% |
|
2.15 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240718041756/en/
Source: