KS Bancorp, Inc. (KSBI) Announces First Quarter 2021 Financial Results and Cash Dividend

SMITHFIELD, N.C., April 26, 2021 (GLOBE NEWSWIRE) -- KS Bancorp, Inc. (the “Company”) (OTCBB: KSBI), parent company of KS Bank, Inc. (the “Bank”), announced unaudited results for the first quarter of 2021.

The Company reported net income of $1,459,000 or $1.32 per diluted share, for the three months ended March 31, 2021, an increase of 58.2% compared to net income of $922,000 or $0.83 per diluted share, for the three months ended March 31, 2020.

Net interest income for the three months ended March 31, 2021, was $4.2 million as compared to $3.5 million for the comparable period in 2020. Noninterest income for the three months ended March 31, 2021 was $675,000, compared to $708,000 for the comparable period ended March 31, 2020. Noninterest expense was $2.9 million for the three months ended March 31, 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 first quarter 2021, compared to $45,000 in the first quarter of 2020.

The Company’s unaudited consolidated total assets increased $29.8 million, to $515.6 million at March 31, 2021, compared to $485.8 million at December 31, 2020. Net loan balances decreased by $8.1 million, to $360.5 million at March 31, 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 balance of the first round PPP loans at March 31, 2021 was $15.8 million compared to $26.5 million at December 31, 2020. During the first quarter of 2021, the Bank participated in the second around of PPP loans providing an additional $5.8 million in PPP loans. The Company’s investment securities totaled $71.5 million at March 31, 2021, compared to $71.7 million at December 31, 2020. Total deposits increased $28.9 million or 7.2% to $431.4 million at March 31, 2021, compared to $402.5 million at December 31, 2020. For the three months ended March 31, 2021, there was a $32.1 million increase in core deposits and a $2.6 million decrease in brokered funding. Total stockholders’ equity increased $568,000 or 1.77% from $32.0 million at December 31, 2020 to $32.6 million at March 31, 2021.
        
Nonperforming assets consisted of $561,000 nonaccrual loans at March 31, 2021, representing less than 0.50% of the Company’s total assets. The Company had $621,000 foreclosed real estate owned at March 31, 2021. The allowance for loan losses at March 31, 2021 totaled $4.8 million, or 1.30% of total loans, including the PPP loans originated. Excluding the PPP from the total loans, the allowance for loan losses at March 31, 2021 was 1.38% of loans.

Commenting on the first quarter results, Harold Keen, President and CEO of the Company and the Bank, stated, “During the first quarter, balance sheet growth continued to be very strong for KS Bank.  Deposit growth was exceptional throughout 2020 and continued in the first quarter of 2021. Earnings were above projections and very encouraging for the year 2021. We are very proud of the efforts made by the KS Bank team to support our customers during this period influenced by Covid-19.”

In addition, the Company announced today that its Board of Directors has declared a quarterly dividend of $0.12 per share for stockholders of record as of April 30, 2021 with payment to be made on May 10, 2021.  

KS Bank continues to be well-capitalized according to regulatory standards with total risk-based capital of 13.39%, tier 1 risk- based capital of 12.14%, common equity tier 1 risk- based capital of 12.14%, and a tier 1 leverage ratio of 8.77% at March 31, 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
[phone]	[phone]

KS Bancorp, Inc. and Subsidiary
Consolidated Statements of Financial Condition
		March 31, 2021				December 31,
		(unaudited)				2020*
		(Dollars in thousands)
	ASSETS
	Cash and due from banks:
	Interest-earning	$	62,817			$	24,720
	Noninterest-earning		2,945				3,128
	Time Deposit		100				100
	Investment securities available for sale, at fair value		71,460				71,714
	Federal Home Loan Bank stock, at cost		1,555				1,851
	Presold mortgages in process of settlement		217				-
	Loans		365,215				373,237
	Less allowance for loan losses		(4,764	)			(4,644	)
	Net loans		360,451				368,593
	Accrued interest receivable		1,925				1,934
	Foreclosed assets, net		621				621
	Property and equipment, net		8,987				8,709
	Other assets		4,528				4,458
	Total assets	$	515,606			$	485,828
	LIABILITIES AND STOCKHOLDERS' EQUITY
	Liabilities
	Deposits	$	431,363			$	402,523
	Long-term borrowings		47,248				47,248
	Accrued interest payable		236				246
	Accrued expenses and other liabilities		4,170				3,790
	Total liabilities		483,017				453,807
	Stockholder's Equity:
	Common stock, no par value, authorized 20,000,000 shares;
	1,107,776 shares issued and outstanding at March 31, 2021 and 1,107,776 shares issued and outstanding at December 31, 2020		1,359				1,359
	Retained earnings, substantially restricted		30,546				29,220
	Accumulated other comprehensive loss		684				1,442
	Total stockholders' equity		32,589				32,021
	Total liabilities and stockholders' equity	$	515,606			$	485,828
	* Derived from audited financial statements

KS Bancorp, Inc and Subsidiary
Consolidated Statements of Income (Unaudited)
		Three Months Ended
		March
			2021			2020
		(In thousands, except per share data)
Interest and dividend income:
	Loans	$	4,387		$	4,170
	Investment securities
	Taxable		263			331
	Tax-exempt		100			40
	Dividends		21			24
	Interest-bearing deposits		6			11
	Total interest and dividend income		4,777			4,576
Interest expense:
	Deposits		286			702
	Borrowings		299			391
	Total interest expense		585			1,093
	Net interest income		4,192			3,483
Provision for loan losses			123			45
	Net interest income after
	provision for loan losses		4,069			3,438
Noninterest income:
	Service charges on deposit accounts		283			352
	Fees from presold mortgages		32			3
	Other income		360			353
	Total noninterest income		675			708
Noninterest expenses:
	Compensation and benefits		1,821			1,810
	Occupancy and equipment		364			363
	Data processing & outside service fees		229			231
	Advertising		11			29
	Other		471			538
	Total noninterest expenses		2,896			2,971
	Income before income taxes		1,848			1,175
Income tax			389			253
	Net income	$	1,459		$	922
	Basic and Diluted earnings per share	$	1.32		$	0.83