STATE COLLEGE - William P. Hayes, chairman and CEO of Kish Bank and Kish Bancorp, announced unaudited financial results for the period ending June 30, claiming positive gains in earnings, loans, and deposits, as well as revenues from the Corporation's related affiliates, Kish Financial Solutions, Kish Insurance, and Kish Travel.
With strong balance sheet growth, net income for the first two quarters of 2014 reached $1.9 million, an increase of $287 thousand or 17.9 percent from $1.6 million in 2013. The primary component of the increase was growth in net interest income, which, at $9 million, increased by $421,000 or 4.9 percent from $8.6 million the prior year.
The corporation's total assets ended the quarter at $646 million, an increase of $33 million, or 5.4 percent, compared to total assets of $613 million as of June 30, 2013. Asset growth was driven by strong growth in loans. Year over year, gross loans increased by $38 million, or 10.3 percent, to $409 million from $371 million at the end of June 2013. Total deposits grew by $26 million to $499 million, an increase of 5.5 percent from $473 million a year ago. Borrowings remained stable at $96 million compared to $95 million at the end of June 2013.
The allowance for loan losses at $5.755 million represents 1.41 percent of total loans outstanding. The adequacy of this reserve is supported by strong asset quality as reflected in loan charge offs that remained near zero, a strengthening in the level of classified loans and very low loan delinquencies.
Noninterest income was $3.1 million for the six months ending June 30, a decline of $94,000 from $3.2 million as of June 2013. This reduction is primarily due to a decrease in revenue from the sale of residential mortgage loans in the secondary market, which declined to $291,000 from $645,000 the prior year. Residential mortgage lending volumes have shown significant declines across the industry, accompanied by a reduction in home mortgage refinancing in the face of higher interest rates. Prior year results also included $275,000 in investment securities gains as compared to $152,000 in gains realized in 2014. Positively, the decrease in noninterest income was partially offset by an increase in noninterest income from wealth management, insurance, travel and other noninterest income sources, all of which have sustained their upward momentum the last several years.
Noninterest expense was $9.9 million in 2014, representing a year-to-date decrease of $103,000, or 1 percent, from $10 million during the same period in 2013. Primary drivers of the decrease in current year expenses were lower healthcare and regulatory expenses compared to the same period last year. Most other expense categories were well controlled when compared to the prior year.
The board of directors renewed authorization for the corporation to repurchase Kish Bancorp common stock in an amount up to $2 million and declared a quarterly dividend in the amount of 41 cents per share, payable July 31 to shareholders of record as of July 15.
Kish Bancorp Inc. is a diversified financial services corporation headquartered in Belleville, trading under the symbol KISB. Subsidiary Kish Bank operates 13 banking offices and financial centers in Centre, Huntingdon and Mifflin Counties. For additional information, visit www.kishbank.com.