Kish Bancorp Inc. (OTCQX: KISB) reported record net income of $6.4 million, or $2.11 per share, for the third quarter of 2026, marking a 23.9% increase year-over-year. The Pennsylvania-based bank holding company saw earnings expand due to improved margins and controlled credit costs.

The result compares to $5.2 million, or $1.72 per share, in the third quarter of 2025. For the first nine months of 2026, net income reached $17.0 million, or $5.62 per share, up from $12.6 million in the prior-year period. All results are unaudited.

Net Interest Income and Margin Expansion

Net interest income before provision rose 17.7% to $18.0 million in Q3 2026, compared to $15.3 million a year ago. This growth was driven by an expansion in the net interest margin (NIM) to 3.59%, up 16 basis points from 3.43% in the third quarter of 2025 and 13 basis points from the preceding quarter.

The margin improvement occurred despite a slight decline in the average yield on interest-earning assets to 6.08%, down six basis points YoY. The yield decline was more than offset by a reduction in funding costs, with the cost of total deposits falling to 2.20% from 2.48% a year ago.

Balance Sheet Growth and Credit Quality

Total assets increased 8.5% year-over-year to $2.10 billion, driven by loan growth of 9.0% to $1.80 billion. Total deposits grew 12.3% to $1.56 billion, outpacing asset growth and contributing to the improved funding mix.

Credit quality metrics showed significant improvement during the quarter. Nonperforming loans decreased 90.1% sequentially to $1.0 million, or 0.09% of total loans, following the resolution of a single syndication loan. The allowance for credit losses stood at $12.7 million, or 0.70% of total loans, while the provision for credit losses fell to $644 thousand from $781 thousand a year ago.

What the Numbers Show

The divergence between deposit growth (12.3%) and loan growth (9.0%) highlights a strategic shift in Kish Bancorp’s funding composition. While loans grew steadily, the faster accumulation of deposits, particularly noninterest-bearing accounts which rose 8.3% YoY, allowed the company to reduce reliance on higher-cost borrowings. Total borrowings decreased in the third quarter as the company replaced some wholesale funding with brokered deposits to lock in costs, a move that supported NIM expansion even as earning asset yields softened slightly.

Operating Expenses and Capital Position

Noninterest expense increased 12.7% to $13.8 million in Q3 2026, primarily driven by salary and benefit expenses reflecting team expansion and technology investments. Despite this rise, the efficiency ratio improved to 64.0% from 66.0% in the prior-year quarter, indicating that revenue growth outpaced expense increases.

Return on average common equity (ROE) strengthened to 17.00%, while return on average assets (ROA) reached 1.20%. Tangible book value per share increased 10.8% to $42.54. The company remains well-capitalized with a Tier 1 leverage ratio of 8.87% and a Total risk-based capital ratio of 11.06%. A quarterly dividend of $0.44 per share was declared, payable October 30, 2026.

Kish Bancorp, Inc. (OTCQX: KISB) has appointed Tina M. Collins as Chief Financial Officer of Kish Bancorp and its subsidiary, Kish Bank, effective July 30, 2026. Collins assumes the permanent role following a public recruiting search, having served as interim CFO since October 2025. The appointment provides continuity for the finance function as the Belleville, Pennsylvania-based financial services corporation strengthens its leadership team.

In a related move, Kish Bancorp announced the hiring of Sean Rainey to succeed Collins as Controller, effective immediately. Rainey joins from Nikon SLM Solutions, where he served as Senior Accounting Manager overseeing North American accounting operations. His prior experience includes leadership roles at GE Healthcare, KCF Technologies, and Rex Energy Corporation. He holds a Bachelor of Science in accounting from Juniata College.

Collins brings over 30 years of experience in community banking to the role. She joined Kish Bank in 2019 and previously served as Senior Vice President, Accounting & Controls Director. In that capacity, she managed financial reporting, regulatory compliance, internal controls, and asset/liability management. Her expertise spans corporate accounting, audit oversight, budgeting, investment portfolio management, and treasury operations. She previously held leadership positions at Riverview Bank and CBT Bank.

Gregory T. Hayes, President and CEO of Kish Bancorp, stated that Collins demonstrated strong leadership during her interim tenure, helping build out the Finance team. He noted that the Board and leadership team have confidence in her ability to guide the company’s next phase of growth. The appointments reflect a deliberate investment in strengthening the finance function alongside Allan Bills, Senior Vice President of Technical Accounting and Balance Sheet Management.

Leadership Transitions

The changes consolidate financial oversight under experienced leadership within the organization. Collins’ transition from interim to permanent CFO eliminates the temporary nature of the role, while Rainey’s appointment ensures continuity in the controller function. Both executives report to the senior leadership team, supporting the broader strategic goals of Kish Bancorp and its diverse business units, which include insurance, wealth management, benefits consulting, trust services, and travel.

Kish Bank operates 21 locations across Centre, Mifflin, Huntingdon, Blair, and Juniata counties in Pennsylvania, as well as northeastern Ohio. The parent company, Kish Bancorp, Inc., is headquartered in Belleville, Pennsylvania, with executive offices in State College and an Innovation Center in Reedsville.