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

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KS Bancorp, Inc. (OTC Pink: KSBI) reported strong unaudited results for Q4 2021, with a net income of $1.4 million ($1.29 per diluted share), marking a 7.43% increase year-over-year. For the full year, net income rose 39.2% to $6.1 million ($5.50 per diluted share). Total assets increased by $85.4 million to $571.2 million, while total deposits grew by 21.1% to $487.4 million. The Company declared a quarterly dividend of $0.16 per share. KS Bancorp remains well-capitalized with robust capital ratios, reflecting its stable operational performance amid evolving market conditions.

Positive
  • Net income increased 39.2% in 2021 to $6.1 million.
  • Total deposits rose by 21.1% to $487.4 million.
  • Quarterly dividend of $0.16 per share announced.
  • Well-capitalized with total risk-based capital of 14.09%.
Negative
  • Net loan balances decreased by $22.9 million to $345.6 million.

SMITHFIELD, N.C., Jan. 26, 2022 (GLOBE NEWSWIRE) -- KS Bancorp, Inc. (the “Company”) (OTC Pink: KSBI), parent company of KS Bank, Inc. (the “Bank”), announced unaudited results for the fourth quarter of 2021.

The Company reported net income of $1.4 million or $1.29 per diluted share, for the three months ended December 31, 2021, an increase of 7.43% compared to net income of $1.3 million, or $1.20 per diluted share for the three months ended December 31, 2020. For the twelve months ended December 31, 2021, the Company reported an increase in net income of 39.2%. Net income was $6.1 million, or $5.50 per diluted share compared to $4.4 million, or $3.95 per diluted share for the twelve months ended December 31, 2020. Non-recurring Payroll Protection Program (PPP) fee income totaled $981,000 for 2021, compared to $430,000 in 2020.

Net interest income before the provision for loan losses for the three months ended December 31, 2021, was $4.4 million as compared to $4.5 million for the comparable period in 2020. Noninterest income for the three months ended December 31, 2021 was $735,000, compared to $814,000 for the comparable period ended December 31, 2020. Noninterest expense was $3.3 million for the three months ended December 31, 2021, as compared $3.2 million in the comparable period in 2020. The Company did not record a provision for loan losses during the fourth quarter 2021, compared to $401,000 in the fourth quarter of 2020.

For the twelve months ended December 31, 2021, net interest income before the provision for loan losses was $17.7 million, compared to $15.4 million for the twelve months ended December 31, 2020. Noninterest income was $2.9 million compared to $2.6 million for the twelve months ended December 31, 2021. For the twelve months ended December 31, 2021, noninterest expense was $12.5 million compared to $11.9 million for the same period in 2020.

The Company’s unaudited consolidated total assets increased $85.4 million, to $571.2 million at December 31, 2021, compared to $485.8 million at December 31, 2020. Net loan balances decreased by $22.9 million, to $345.6 million at December 31, 2021, compared to $368.6 million at December 31, 2020. The decrease in loans was primarily due to forgiveness of PPP loans. The balance of the PPP loans at December 31, 2020 was $26.5 million. The first and second round PPP loans have been completely forgiven at December 31, 2021. The Company’s investment securities totaled $88.3 million at December 31, 2021, compared to $71.7 million at December 31, 2020. Total deposits increased $84.9 million or 21.1% to $487.4 million at December 31, 2021, compared to $402.5 million at December 31, 2020. For the twelve months ended December 31, 2021, there was a $86.4 million increase in core deposits. Total stockholders’ equity increased $4.6 million or 14.44% from $32.0 million at December 31, 2020 to $36.6 million at December 31, 2021.
        
Nonperforming assets consisted of $902,000 in nonaccrual loans at December 31, 2021, representing less than 0.50% of the Company’s total assets. The Company had $621,000 foreclosed real estate owned at December 31, 2021. The allowance for loan losses at December 31, 2021 totaled $5.0 million, or 1.43% of total loans.

Commenting on the fourth quarter results, Harold Keen, President of the Company stated, “This was a tremendous year for KS Bancorp and KS Bank. The Bank ended the year with highest earnings in its 97-year history in part due to the increased fee income provided by the Payroll Protection Program (PPP). In addition, the Bank saw record growth in deposits and a stable year in loans. Beginning in 2020 and finalized in 2021, our team successfully facilitated and had complete forgiveness of over $38 million in PPP loans in addition to our normal lending opportunities. The Bank’s Trust Division had a banner year in the growth of assets under management and increased fee income. The Bank’s market area continues to expand in both increased housing and job opportunities which bids well for our continued success as an organization.”

Earl W. Worley, Jr., newly appointed President of KS Bank stated, “The year 2021 was an excellent year for KS Bank and we look forward to continuing our efforts in 2022 to capitalize on the changing bank environment with our brand of service-oriented community banking. We are extremely proud of our associates and the work they do each day to win customers and take care of their needs. This continues to create value for all of our stakeholders.”  

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 January 31, 2022 with payment to be made on February 10, 2022.  

KS Bank continues to be well-capitalized according to regulatory standards with total risk-based capital of 14.09%, tier 1 risk- based capital of 12.83%, common equity tier 1 risk- based capital of 12.83%, and a tier 1 leverage ratio of 8.29% at December 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. 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.         

 
KS Bancorp, Inc. and Subsidiary
Consolidated Statements of Financial Condition
        
        
 December 31, 2021 December 31,
 (unaudited) 2020*
        
 (Dollars in thousands)
ASSETS       
        
Cash and due from banks:       
Interest-earning$111,762  $24,720 
Noninterest-earning 2,626   3,128 
Time Deposit 5,100   100 
Investment securities available for sale, at fair value 88,320   71,714 
Federal Home Loan Bank stock, at cost 1,443   1,851 
Loans 350,667   373,237 
Less allowance for loan losses (5,023)  (4,644)
Net loans 345,644   368,593 
        
Accrued interest receivable 1,543   1,934 
Foreclosed assets, net 621   621 
Property and equipment, net 9,149   8,709 
Other assets 5,017   4,458 
        
Total assets$ 571,225  $ 485,828 
        
LIABILITIES AND STOCKHOLDERS' EQUITY       
        
Liabilities       
Deposits$487,437  $402,523 
Short-term borrowings$1,000     
Long-term borrowings 42,248   47,248 
Accrued interest payable 216   246 
Accrued expenses and other liabilities 3,679   3,790 
        
Total liabilities 534,580   453,807 
        
Stockholder's Equity:       
Common stock, no par value, authorized 20,000,000 shares;       
 1,107,776 shares issued and outstanding at December 31,
 2021 and 2020, respectively
 1,359   1,359 
Retained earnings, substantially restricted 34,694   29,220 
Accumulated other comprehensive loss 592   1,442 
        
Total stockholders' equity 36,645   32,021 
        
Total liabilities and stockholders' equity$ 571,225  $ 485,828 
        
* Derived from audited financial statements       
        



KS Bancorp, Inc and Subsidiary
Consolidated Statements of Income (Unaudited)
       
       
  Three Months Ended Twelve Months Ended
  31-Dec 31-Dec
  2021 2020  2021  2020
          
  (In thousands, except per share data)      
Interest and dividend income:           
 Loans$4,342 $4,843  18,033  17,501
 Investment securities           
 Taxable 298  271  1,084  1,170
 Tax-exempt 156  78  549  216
 Dividends 6  22  55  88
 Interest-bearing deposits 36  4  84  22
 Total interest and dividend income 4,838  5,218  19,805  18,997
             
Interest expense:           
 Deposits 224  375  1,023  2,233
 Borrowings 250  330  1,121  1,356
 Total interest expense 474  705  2,144  3,589
             
 Net interest income 4,364  4,513  17,661  15,408
             
Provision for loan losses -  401  369  561
             
 Net interest income after           
  provision for loan losses 4,364  4,112  17,292  14,847
             
Noninterest income:           
 Service charges on deposit accounts 302  370  1,145  1,059
 Fees from presold mortgages 2  84  56  169
 Other income 431  360  1,675  1,389
 Total noninterest income 735  814  2,876  2,617
             
Noninterest expenses:           
 Compensation and benefits 2,040  1,926  7,675  7,359
 Occupancy and equipment 413  354  1,535  1,438
 Data processing & outside service fees 258  236  960  936
 Advertising 23  49  71  109
 Other 572  644  2,215  2,035
 Total noninterest expenses 3,306  3,209  12,456  11,877
             
 Income before income taxes 1,793  1,717  7,712  5,587
             
Income tax 362  384  1,618  1,216
             
 Net income$1,431 $1,333 $6,094 $4,371
             
 Basic and Diluted earnings per share$1.29 $1.20 $5.50 $3.95
             


Harold T. Keen
President 
(919) 938-3101
Regina J Smith
Chief Financial Officer
(919) 938-3101


FAQ

What are the fourth quarter results for KS Bancorp (KSBI) in 2021?

KS Bancorp reported a net income of $1.4 million for Q4 2021, which is a 7.43% increase compared to Q4 2020.

How much was KS Bancorp's net income for the full year 2021?

For the full year 2021, KS Bancorp reported a net income of $6.1 million, reflecting a 39.2% increase from 2020.

When is the dividend payment for KS Bancorp (KSBI) set to be made?

The quarterly dividend of $0.16 per share will be paid on February 10, 2022, to stockholders of record as of January 31, 2022.

What factors contributed to KS Bancorp's growth in 2021?

Growth in KS Bancorp's net income was driven by increased fee income from the Payroll Protection Program and a significant rise in deposits.

What was the change in total assets for KS Bancorp (KSBI) in 2021?

Total assets for KS Bancorp increased by $85.4 million to $571.2 million at December 31, 2021.

KS BANCORP INC

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Smithfield