KS Bancorp, Inc. (KSBI) Reports 50% Increase in Net Income for First Quarter 2025 and Declares Quarterly Dividend

Rhea-AI Summary

KS Bancorp (KSBI) reported strong Q1 2025 financial results with a 50% increase in net income to $2.1 million ($1.87 per diluted share), compared to $1.4 million ($1.25 per diluted share) in Q1 2024.

Key financial metrics include:

• Net interest income rose to $6.3 million from $5.1 million
• Total assets increased by $31.2 million to $722.1 million
• Net loans grew by $7.1 million to $561.6 million
• Deposits increased by $39.4 million to $657.6 million, including 5.2% growth in core deposits

The bank maintains strong asset quality with nonperforming assets below 0.10% of total assets. The Board declared a quarterly dividend of $0.27 per share, payable on May 5, 2025, to stockholders of record as of April 25, 2025. The bank remains well-capitalized with a Community Bank Leverage Ratio of 9.31%.

Positive

• Net income increased 50% year-over-year to $2.1 million
• Net interest income grew 23.5% to $6.3 million
• Total deposits increased by $39.4 million (6.4%)
• Core deposits grew by 5.2%
• Strong asset quality with nonperforming assets below 0.10%
• Community Bank Leverage Ratio improved to 9.31%

Negative

• Noninterest expenses increased 9.9% to $4.4 million
• Provision for loan losses increased to $195,000 from $169,000

SMITHFIELD, NC / ACCESS Newswire / April 17, 2025 / KS Bancorp, Inc. (the "Company") (OTC PINK:KSBI), the parent company of KS Bank, Inc. (the "Bank"), announced unaudited results for the first quarter of 2025.

The Company reported net income of $2.1 million or $1.87 per diluted share for the three months ended March 31, 2025, compared to net income of $1.4 million or $1.25 per diluted share for the three months ended March 31, 2024.

Net interest income before the provision for credit losses for the three months ended March 31, 2025, was $6.3 million, compared to $5.1 million on March 31, 2024. Noninterest income for the three months ended March 31, 2025, was $912,000, compared to $829,000 for the comparable period ended March 31, 2024. Noninterest expense was $4.4 million for the three months ended March 31, 2025, compared to $4.0 million in the comparable period in 2024.

The Company's unaudited consolidated total assets increased by $31.2 million to $722.1 million as of March 31, 2025, compared to $690.9 million on December 31, 2024. Net loan balances increased by $7.1 million to $561.6 million as of March 31, 2025, compared to $554.5 million on December 31, 2024. The Company's investment securities totaled $96.5 million as of March 31, 2025, compared to $96.0 million on December 31, 2024. Total deposits increased by $39.4 million to $657.6 million as of March 31, 2025, compared to $618.2 million on December 31, 2024. The increase in deposits included a $29.3 million increase or 5.2% in core deposits. Short-term borrowings decreased by $11.0 million in the first quarter of 2025. Total stockholders' equity increased $2.2 million to $47.5 million as of March 31, 2025, from $45.3 million on December 31, 2024.

As of March 31, 2025, nonperforming assets consisted of nonaccrual loans of $703,000, representing less than 0.10% of the Company's total assets. No foreclosed real estate was owned as of March 31, 2025. The allowance for credit losses as of March 31, 2025, totaled $4.4 million, or 0.79% of total loans.

Commenting on the first quarter results, Earl W. Worley, Jr., President and CEO of the Company, stated, "We are proud to report another strong quarter for KS Bancorp, highlighted by a 50% increase in net income compared to the same quarter last year. This performance reflects our team's commitment to disciplined lending, strategic deposit growth, and operational excellence. Despite a challenging interest rate environment, we delivered solid financial results, including a $39.4 million increase in deposits and a $7.1 million rise in net loans. These outcomes underscore the strength of our balance sheet and position us well to continue supporting the communities of eastern North Carolina with confidence and stability. Looking ahead, we remain cautiously optimistic, recognizing that broader economic conditions and the ongoing actions of the Federal Reserve will influence future results."

In addition, the Company announced today that its Board of Directors has declared a quarterly dividend of $0.27 per share for stockholders of record as of April 25, 2025, with payment to be made on May 5, 2025.

KS Bank continues to be well capitalized according to regulatory standards, with a Community Bank Leverage Ratio of 9.31% as of March 31, 2025, compared to 9.24% on December 31, 2024.

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 that has served the citizens of eastern North Carolina since 1924. The Bank offers a broad range of personal and business banking products and services, mortgages, and trust services. There are ten full-service branches located in Kenly, Selma, Clayton, Garner, Goldsboro, Wilson, Wendell, Smithfield, Four Oaks, and Dunn, North Carolina. For more information, visit www.ksbankinc.com.

For additional information, contact Regina J. Smith, Chief Financial Officer at 919.938.3101

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

	March 31, 2025				December 31,
	(unaudited)				2024*
	(Dollars in thousands)
ASSETS
Cash and due from banks:
Interest-earning	$	34,208			$	10,627
Noninterest-earning		4,627				4,897
Time Deposit		823				523
Investment securities available for sale, at fair value		96,500				95,946
Federal Home Loan Bank stock, at cost		498				469
Loans		566,036				558,779
Less allowance for loan losses		(4,449	)			(4,259	)
Net loans		561,587				554,520
Accrued interest receivable		2,929				2,655
Foreclosed assets, net		-				-
Property and equipment, net		12,126				12,231
Other assets		8,781				8,981
Total assets	$	722,079			$	690,849
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits	$	657,577			$	618,156
Short-term borrowings	$	-			$	11,144
Long-term borrowings		11,248				11,248
Accrued interest payable		329				323
Accrued expenses and other liabilities		5,424				4,675
Total liabilities		674,578				645,546
Stockholder's Equity:
Preferred stock, no par value, 500,000 shares authorized; none issued and outstanding		-				-
Common stock, no par value, 3,500,000 shares authorized; 1,107,776 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively		1,359				1,359
Retained earnings, substantially restricted		54,450				52,675
Accumulated other comprehensive		(8,308	)			(8,731	)
Total stockholders' equity		47,501				45,303
Total liabilities and stockholders' equity	$	722,079			$	690,849
* Derived from audited financial statements

KS Bancorp, Inc and Subsidiary
Consolidated Statement of Income

		Three Months Ended
		31-Mar
		2025				2024
		(In thousands, except per share data)
Interest and dividend income:
Loans		$	8,956			$	7,453
Investment securities
Taxable			560				500
Tax-exempt			181				202
Dividends			6				6
Interest-bearing deposits			131				120
Total interest and dividend income			9,834				8,281
Interest expense:
Deposits			3,314				2,806
Borrowings			188				373
Total interest expense			3,502				3,179
Net interest income			6,332				5,102
Provision for loan losses			195				169
Net interest income after
provision for loan losses			6,137				4,933
Noninterest income:
Service charges on deposit accounts			325				314
Fees from trust services			371				317
Other income			216				198
Total noninterest income			912				829
Noninterest expenses:
Compensation and benefits			2,669				2,502
Occupancy and equipment			660				557
Data processing & outside service fees			264				235
Advertising			53				46
Other			731				642
Total noninterest expenses			4,377				3,982
Income before income taxes			2,672				1,780
Income tax			597				394
Net income		$	2,075			$	1,386
Basic and Diluted earnings per share		$	1.87			$	1.25

SOURCE: KS Bancorp, Inc.

View the original press release on ACCESS Newswire

FAQ

What was KSBI's earnings per share (EPS) for Q1 2025?

KS Bancorp reported earnings of $1.87 per diluted share for Q1 2025, up from $1.25 in Q1 2024.

How much did KS Bancorp's deposits grow in Q1 2025?

Total deposits increased by $39.4 million to $657.6 million, including a $29.3 million (5.2%) increase in core deposits.

What is the dividend amount and payment date for KSBI shareholders?

KSBI declared a quarterly dividend of $0.27 per share, payable on May 5, 2025, to stockholders of record as of April 25, 2025.

What is KS Bancorp's asset quality status as of Q1 2025?

KSBI maintained strong asset quality with nonperforming assets below 0.10% of total assets and an allowance for credit losses of 0.79% of total loans.

How much did KSBI's net interest income grow in Q1 2025?

Net interest income increased to $6.3 million in Q1 2025, up from $5.1 million in Q1 2024, representing a 23.5% increase.