MIL-OSI: KS Bancorp, Inc. (KSBI) Announces Third Quarter 2021 Financial Results and Cash Dividend

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Source: GlobeNewswire (MIL-OSI)

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. Keen Regina 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  
             

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