SMITHFIELD, N.C., Oct. 21, 2021 (GLOBE NEWSWIRE) -- KS Bancorp, Inc. (the “Company”) (OTC Pink: KSBI), parent company of KS Bank, Inc. (the “Bank”), announced unaudited results for the third quarter of 2021.

The Company reported net income of $1.7 million or $1.52 per diluted share, for the three months ended September 30, 2021, an increase of 47.16% compared to net income of $1.1 million, or $1.03 per diluted share for the three months ended September 30, 2020. For the nine months ended September 30, 2021, the Company reported net income of $4.7 million, or $4.21 per diluted share compared to $3.0 million, or $2.74 per diluted share for the nine months ended September 30, 2020.

Net interest income before the provision for loan losses for the three months ended September 30, 2021, was $4.7 million as compared to $3.8 million for the comparable period in 2020. Noninterest income for the three months ended September 30, 2021 was $758,000, compared to $745,000 for the comparable period ended September 30, 2020. Noninterest expense was $3.2 million for the three months ended September 30, 2021, as compared $3.0 million in the comparable period in 2020. The Company recorded a provision for loan losses of $123,000 during the third quarter 2021, compared to $45,000 in the third quarter of 2020.

For the nine months ended September 30, 2021, net interest income before the provision for loan losses was $13.3 million, compared to $10.9 million for the nine months ended September 30, 2020. Noninterest income remain stable at $2.1 million for the nine months ended September 30, 2021 and 2020, respectfully. For the nine months ended September 30, 2021, noninterest income was $9.2 million compared to $9.0 million for the same period in 2020.

The Company’s unaudited consolidated total assets increased $73.3 million, to $559.1 million at September 30, 2021, compared to $485.8 million at December 31, 2020. Net loan balances decreased by $19.8 million, to $348.8 million at September 30, 2021, compared to $368.6 million at December 31, 2020. The decrease in loans was primarily due to forgiveness of payroll protection plan loans (PPP). The first round PPP loans have been completely forgiven at September 30, 2021. The second round PPP loan balance was $2.7 million at September 30, 2021. The Company’s investment securities totaled $80.0 million at September 30, 2021, compared to $71.7 million at December 31, 2020. Total deposits increased $73.4 million or 18.2% to $475.9 million at September 30, 2021, compared to $402.5 million at December 31, 2020. For the nine months ended September 30, 2021, there was a $75.7 million increase in core deposits. Total stockholders’ equity increased $3.6 million or 11.33% from $32.0 million at December 31, 2020 to $35.6 million at September 30, 2021.

Nonperforming assets consisted of $1.3 million in nonaccrual loans at September 30, 2021, representing less than 0.50% of the Company’s total assets. The Company had $621,000 foreclosed real estate owned at September 30, 2021. The allowance for loan losses at September 30, 2021 totaled $5.0 million, or 1.42% of total loans.

Commenting on the third quarter results, Harold Keen, President and CEO of the Company and the Bank, stated, “One of the core values we live by at KS Bank is to create win-wins for customers and the bank.  After eighteen months of the payroll protection loans, our team successfully helped local businesses keep their employees working, by facilitating over $38.0 million in loans.  Over 95% of those have been completely forgiven, and the remaining loans are near the end of documentation for forgiveness.  Service given to existing customers and to many new customers who were having trouble at their now former bank, just affirms a win-win to all.  There has been record growth in many areas of the Bank for the first nine months of 2021.”

In addition, the Company announced today that its Board of Directors has declared a quarterly dividend of $0.16 per share for stockholders of record as of October 29, 2021 with payment to be made on November 8, 2021.

KS Bank continues to be well-capitalized according to regulatory standards with total risk-based capital of 13.68%, tier 1 risk- based capital of 12.43%, common equity tier 1 risk- based capital of 12.43%, and a tier 1 leverage ratio of 8.46% at September 30, 2021. The minimum levels to be considered well capitalized for each of these ratios are 10.0%, 8.0%, 6.5%, and 5.0%, respectively.

KS Bancorp, Inc. is a Smithfield, North Carolina-based single bank holding company. KS Bank, Inc., a state-chartered savings bank, is KS Bancorp’s sole subsidiary. The Bank is a full service community bank serving the citizens of eastern North Carolina since 1924. The Bank offers a broad range of personal and business banking products and services, mortgage products and trust services. There are nine full service branches located in Kenly, Selma, Clayton, Garner, Goldsboro, Wilson, Wendell, Smithfield, and Four Oaks, North Carolina. In addition, KS Trust Services has a presence in Waynesville and Wilmington, NC. For more information, visit www.ksbankinc.com.

This release contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Company. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of management of the Company and on the information available to management at the time that these disclosures were prepared. These statements can be identified by the use of words like “expect,” “anticipate,” “estimate” and “believe,” variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. The Company undertakes no obligation to update any forward-looking statements.

Contact: Harold T. KeenRegina J Smith
President and Chief Executive Officer Chief Financial Officer
(919) 938-3101(919) 938-3101

 

 
 
KS Bancorp, Inc. and Subsidiary
Consolidated Statements of Financial Condition
    
  September 30, 2021  December 31, 
  (unaudited)  2020* 
    
  (Dollars in thousands)
 ASSETS  
    
 Cash and due from banks:  
 Interest-earning$107,437  $24,720 
 Noninterest-earning 3,150   3,128 
 Time Deposit 2,600   100 
 Investment securities available for sale, at fair value 79,972   71,714 
 Federal Home Loan Bank stock, at cost 1,443   1,851 
 Presold mortgages in process of settlement -   - 
 Loans 353,787   373,237 
 Less allowance for loan losses (5,017)  (4,644)
 Net loans 348,770   368,593 
    
 Accrued interest receivable 1,685   1,934 
 Foreclosed assets, net 621   621 
 Property and equipment, net 8,939   8,709 
 Other assets 4,541   4,458 
    
 Total assets$559,158  $485,828 
    
 LIABILITIES AND STOCKHOLDERS' EQUITY  
    
 Liabilities  
 Deposits$475,946  $402,523 
 Long-term borrowings 43,248   47,248 
 Accrued interest payable 233   246 
 Accrued expenses and other liabilities 4,082   3,790 
    
 Total liabilities 523,509   453,807 
    
 Stockholder's Equity:  
 Common stock, no par value, authorized 20,000,000 shares; 
 1,107,776 shares issued and outstanding at September 30, 2021 and December 31, 2020 1,359   1,359 
 Retained earnings, substantially restricted 33,440   29,220 
 Accumulated other comprehensive loss 850   1,442 
    
 Total stockholders' equity 35,649   32,021 
    
 Total liabilities and stockholders' equity$559,158  $485,828 
    
 * Derived from audited financial statements  
    


KS Bancorp, Inc and Subsidiary   
Consolidated Statements of Income (Unaudited)   
       
       
  Three Months Ended Nine Months Ended
  30-Sep 30-Sep
   2021  2020   2021  2020 
  (In thousands, except per share data)   
Interest and dividend income:     
 Loans$4,744 $4,280   13,691  12,658 
 Investment securities     
 Taxable 272  269   786  899 
 Tax-exempt 155  57   393  138 
 Dividends 10  21   49  66 
 Interest-bearing deposits 27  4   48  18 
 Total interest and dividend income 5,208  4,631   14,967  13,779 
       
Interest expense:     
 Deposits 249  521   799  1,858 
 Borrowings 276  314   871  1,026 
 Total interest expense 525  835   1,670  2,884 
       
 Net interest income 4,683  3,796   13,297  10,895 
       
Provision for loan losses 123  45   369  160 
       
 Net interest income after     
 provision for loan losses 4,560  3,751   12,928  10,735 
       
Noninterest income:     
 Service charges on deposit accounts 281  352   843  1,020 
 Fees from presold mortgages 5  51   54  85 
 Gain (Loss) on sale of investments -  4    4 
 Other income 472  338   1,244  1,025 
 Total noninterest income 758  745   2,141  2,134 
       
Noninterest expenses:     
 Compensation and benefits 1,935  1,838   5,634  5,433 
 Occupancy and equipment 394  347   1,122  1,084 
 Data processing & outside service fees 241  246   702  700 
 Advertising 22  17   48  60 
 Other 592  587   1,644  1,722 
 Total noninterest expenses 3,184  3,035   9,150  8,999 
       
 Income before income taxes 2,134  1,461   5,919  3,870 
       
Income tax 449  316   1,256  832 
       
 Net income$1,685 $1,145   $4,663 $3,038 
       
 Basic and Diluted earnings per share$1.52 $1.03  $4.21 $2.74