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

Rhea-AI Summary

KS Bancorp, Inc. (OTC Pink: KSBI) reported a net income of $1.519 million or $1.37 per diluted share for Q2 2021, marking a 56.4% increase from $971,000 in Q2 2020. For the first half of 2021, net income rose to $3.0 million or $2.69 per diluted share, up from $1.9 million. Total assets reached $533.6 million, up $47.8 million since December 2020. Deposits increased by 12.3% to $452.1 million. However, net loan balances decreased by $23.4 million, primarily due to the forgiveness of PPP loans. A quarterly dividend of $0.16 per share was declared for payment on August 9, 2021.

Positive

• Net income increased by 56.4% year-over-year in Q2 2021.
• Total assets grew by $47.8 million, reaching $533.6 million.
• Total deposits rose by 12.3%, amounting to $452.1 million.
• Quarterly dividend increased by 33%, now at $0.16 per share.

Negative

• Net loan balances decreased by $23.4 million due to PPP loan forgiveness.

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

The Company reported net income of $1,519,000 or $1.37 per diluted share, for the three months ended June 30, 2021, an increase of 56.4% compared to net income of $971,000 or $0.88 per diluted share, for the three months ended June 30, 2020. For the six months ended June 30, 2021, the Company reported net income of $3.0 million, or $2.69 per diluted share compared to $1.9 million, or $1.71 per diluted share for the six months ended June 30, 2020.

Net interest income for the three months ended June 30, 2021, was $4.4 million as compared to $3.6 million for the comparable period in 2020. Noninterest income for the three months ended June 30, 2021 was $708,000, compared to $681,000 for the comparable period ended June 30, 2020. Noninterest expense was $3.1 million for the three months ended June 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 second quarter 2021, compared to $70,000 in the second quarter of 2020.

For the six months ended June 30, 2021, net interest income before the provision for loan losses was $8.6 million, compared to $7.1 million for the six months ended June 30, 2020. Noninterest income and expenses remain stable for the six months ended June 30, 2021 and 2020. Noninterest income was $1.4 million and noninterest expense was $5.7 million.

The Company’s unaudited consolidated total assets increased $47.8 million, to $533.6 million at June 30, 2021, compared to $485.8 million at December 31, 2020. Net loan balances decreased by $23.4 million, to $345.2 million at June 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 balance of the first round PPP loans at June 30, 2021 was $2.0 million compared to $26.5 million at December 31, 2020. The Bank participated in the second around of PPP loans providing an additional $9.0 million in PPP loans that was reflected in the loan balance at June 30, 2021. The Company’s investment securities totaled $79.9 million at June 30, 2021, compared to $71.7 million at December 31, 2020. Total deposits increased $49.6 million or 12.3% to $452.1 million at June 30, 2021, compared to $402.5 million at December 31, 2020. For the six months ended June 30, 2021, there was a $50.8 million increase in core deposits. Total stockholders’ equity increased $2.2 million or 6.95% from $32.0 million at December 31, 2020 to $34.2 million at June 30, 2021.
        
Nonperforming assets consisted of $557,000 nonaccrual loans at June 30, 2021, representing less than 0.50% of the Company’s total assets. The Company had $621,000 foreclosed real estate owned at June 30, 2021. The allowance for loan losses at June 30, 2021 totaled $4.9 million, or 1.40% of total loans.

Commenting on the second quarter results, Harold Keen, President and CEO of the Company and the Bank, stated, “Second quarter balance sheet growth continued with the increase in low cost demand demand deposits and profit increases were fueled by loan interest from Payroll Protection Loans (PPP).  Loan growth excluding PPP was somewhat flat during the second quarter, but a strong pipeline of loans fueled by late spring economic activity is encouraging for current and future periods.  We are extremely please that our Board of Directors approved a thirty-three (33) percent increase in dividends payable for the second quarter. This highlights the positive results for the first six 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 July 30, 2021 with payment to be made on August 9, 2021.  

KS Bank continues to be well-capitalized according to regulatory standards with total risk-based capital of 13.75%, tier 1 risk- based capital of 12.50%, common equity tier 1 risk- based capital of 12.50%, and a tier 1 leverage ratio of 8.35% at June 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.

KS Bancorp, Inc. and Subsidiary
Consolidated Statements of Financial Condition
		June 30, 2021			December 31,
		(unaudited)			2020*
		(Dollars in thousands)
	ASSETS
	Cash and due from banks:
	Interest-earning	$	86,103		$	24,720
	Noninterest-earning		2,875			3,128
	Time Deposit		2,600			100
	Investment securities available for sale, at fair value		79,850			71,714
	Federal Home Loan Bank stock, at cost		1,443			1,851
	Presold mortgages in process of settlement		-			-
	Loans		350,095			373,237
	Less allowance for loan losses		(4,892	)		(4,644	)
	Net loans		345,203			368,593
	Accrued interest receivable		1,540			1,934
	Foreclosed assets, net		621			621
	Property and equipment, net		8,859			8,709
	Other assets		4,563			4,458
	Total assets	$	533,657		$	485,828
	LIABILITIES AND STOCKHOLDERS' EQUITY
	Liabilities
	Deposits	$	452,138		$	402,523
	Long-term borrowings		43,248			47,248
	Accrued interest payable		232			246
	Accrued expenses and other liabilities		3,792			3,790
	Total liabilities		499,410			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		31,932			29,220
	Accumulated other comprehensive loss		956			1,442
	Total stockholders' equity		34,247			32,021
	Total liabilities and stockholders' equity	$	533,657		$	485,828
	* Derived from audited financial statements

KS Bancorp, Inc and Subsidiary
Consolidated Statements of Income (Unaudited)
		Three Months Ended						Six Months Ended
		June 30,						June 30,
			2021			2020			2021			2020
		(In thousands, except per share data)
Interest and dividend income:
	Loans	$	4,560		$	4,208		$	8,947		$	8,378
	Investment securities
	Taxable		251			299			514			630
	Tax-exempt		138			41			238			81
	Dividends		18			21			39			45
	Interest-bearing deposits		15			3			21			14
	Total interest and dividend income		4,982			4,572			9,759			9,148
Interest expense:
	Deposits		264			635			550			1,337
	Borrowings		296			321			595			712
	Total interest expense		560			956			1,145			2,049
	Net interest income		4,422			3,616			8,614			7,099
Provision for loan losses			123			70			246			115
	Net interest income after
	provision for loan losses		4,299			3,546			8,368			6,984
Noninterest income:
	Service charges on deposit accounts		279			316			562			668
	Fees from presold mortgages		17			31			49			34
	Other income		412			334			772			687
	Total noninterest income		708			681			1,383			1,389
Noninterest expenses:
	Compensation and benefits		1,878			1,785			3,699			3,595
	Occupancy and equipment		364			374			728			737
	Data processing & outside service fees		232			223			461			454
	Advertising		15			14			26			43
	Other		581			597			1,052			1,135
	Total noninterest expenses		3,070			2,993			5,966			5,964
	Income before income taxes		1,937			1,234			3,785			2,409
Income tax			418			263			807			516
	Net income	$	1,519		$	971		$	2,978		$	1,893
	Basic and Diluted earnings per share	$	1.37		$	0.88		$	2.69		$	1.71

 

 

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

 

FAQ

What were the Q2 2021 earnings results for KS Bancorp (KSBI)?

KS Bancorp reported a net income of $1.519 million or $1.37 per diluted share for Q2 2021.

How did total assets change for KS Bancorp (KSBI) in 2021?

Total assets increased by $47.8 million to $533.6 million at June 30, 2021.

What is the dividend announced by KS Bancorp (KSBI) for Q2 2021?

The Board of Directors declared a quarterly dividend of $0.16 per share, payable on August 9, 2021.

What was the change in net loan balances for KS Bancorp (KSBI)?

Net loan balances decreased by $23.4 million, primarily due to the forgiveness of PPP loans.