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

Rhea-AI Summary

KS Bancorp, Inc. (OTC Pink: KSBI) reported a net income of $1.7 million or $1.52 per diluted share for Q3 2021, marking a 47.16% increase compared to Q3 2020. For the nine months ended September 30, 2021, net income totaled $4.7 million. Net interest income before provisions was $4.7 million in Q3 2021, up from $3.8 million in Q3 2020. Total assets increased to $559.1 million, with total deposits rising 18.2% to $475.9 million. The Board declared a quarterly dividend of $0.16 per share.

Positive

• Net income for Q3 2021 increased by 47.16% to $1.7 million.
• Total deposits rose by $73.4 million or 18.2% to $475.9 million.
• Total assets increased by $73.3 million to $559.1 million.
• Declared a quarterly dividend of $0.16 per share.

Negative

• Net loan balances decreased by $19.8 million to $348.8 million.
• Provision for loan losses increased to $123,000 from $45,000 in Q3 2020.

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

FAQ

What are the Q3 2021 earnings results for KS Bancorp (KSBI)?

KS Bancorp reported a net income of $1.7 million or $1.52 per diluted share for Q3 2021.

How much did KS Bancorp's total assets increase by as of September 30, 2021?

Total assets increased by $73.3 million to $559.1 million.

What is the dividend declared by KS Bancorp for Q3 2021?

KS Bancorp declared a quarterly dividend of $0.16 per share.

How did KS Bancorp's net interest income change in Q3 2021?

Net interest income before provisions increased to $4.7 million in Q3 2021.

What was the increase in total deposits reported by KS Bancorp?

Total deposits rose by $73.4 million or 18.2% to $475.9 million.