KS Bancorp, Inc. (KSBI) announces third quarter 2021


SMITHFIELD, NC, October 21, 2021 (GLOBE NEWSWIRE) – KS Bancorp, Inc. (the “Company”) (OTC Pink: KSBI), parent company of KS Bank, Inc. (the “Bank”), announced results of the third quarter 2021.

The Company reported net income of $ 1.7 million or $ 1.52 per diluted share for the quarter ended September 30, 2021, an increase of 47.16% over net income of $ 1.1 million. dollars, or $ 1.03 per diluted share for the quarter 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 allowance for loan losses for the quarter ended September 30, 2021 was $ 4.7 million, compared to $ 3.8 million for the comparable period of 2020. Other income interest expense for the quarter ended September 30, 2021 was $ 758,000, compared to $ 745,000 for the comparable period ended September 30, 2020. Non-interest expense amounted to $ 3.2 million for the quarter ended September 30, 2021, compared to $ 3.0 million for the comparable period in 2020. The Company recorded an allowance for loan losses of $ 123,000 during the third quarter of 2021, compared to $ 45,000 in the third quarter 2020.

For the nine months ended September 30, 2021, net interest income before the allowance for loan losses was $ 13.3 million, compared to $ 10.9 million for the nine months ended September 30 2020. Non-interest income remains stable at $ 2.1 million for the nine months ended September. 30, 2021 and 2020, respectfully. For the nine months ended September 30, 2021, non-interest income was $ 9.2 million, compared to $ 9.0 million for the same period in 2020.

The Company’s total unaudited consolidated assets increased by $ 73.3 million to $ 559.1 million as at September 30, 2021, compared to $ 485.8 million as at December 31, 2020 Net loan balances decreased by $ 19.8 million to $ 348.8 million as at September 30, 2021, from $ 368.6 million. as of December 31, 2020. The decrease in loans is mainly explained by the cancellation of payroll protection plan (PPP) loans. The first round PPP loans were completely canceled as of September 30, 2021. The balance of the second round PPP loan was $ 2.7 million as of September 30, 2021. The Company’s investment securities amounted to 80.0 million as of September 30, 2021, compared to $ 71.7 million as of December 31, 2020. Total deposits increased $ 73.4 million or 18.2% to $ 475.9 million as at September 30, 2021, compared to $ 402.5 million as at December 31, 2020. For the nine-month period ended September 30, 2021, there was an increase of $ 75.7 million in base deposits. Total equity increased by $ 3.6 million or 11.33%, from $ 32.0 million as of December 31, 2020 to $ 35.6 million as of September 30, 2021.

Non-performing assets consisted of $ 1.3 million of unrecorded loans as at September 30, 2021, representing less than 0.50% of the Company’s total assets. The Company had $ 621,000 in foreclosed real estate as at September 30, 2021. The allowance for loan losses as 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, said: “One of the core values ​​we uphold at KS Bank is to create win-win for customers and the bank. After eighteen months of payroll protection loans, our team has successfully helped local businesses keep their employees at work, facilitating over $ 38.0 million in loans. Over 95% of these have been completely canceled, and the remaining loans are nearing the end of documentation for cancellation. The service provided to existing customers and to many new customers who encountered difficulties in their now old bank, only affirms a win-win to all. There has been record growth in many areas of banking in 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 shareholders of record as of October 29, 2021, with payment due on November 8, 2021.

KS Bank continues to be well capitalized in accordance with regulatory standards with a total risk capital of 13.68%, a level 1 risk capital of 12.43%, a level 1 common equity risk capital of 12 , 43% and a level 1 leverage ratio of 8.46% as of September 30, 2021. The minimum levels to be considered as well capitalized for each of these ratios are respectively 10.0%, 8.0%, 6.5 % and 5.0%.

KS Bancorp, Inc. is a sole banking holding company based in Smithfield, North Carolina. KS Bank, Inc., a state chartered savings bank, is the only subsidiary of KS Bancorp. The Bank is a full-service community bank serving the citizens of Eastern North Carolina since 1924. The Bank offers a wide range of personal and commercial 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, North Carolina. For more information visit www.ksbankinc.com.

This press release contains certain forward-looking statements concerning 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 the management of the Company and on the information available to management at the time these disclosures were prepared. These statements can be identified by the use of words such as “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 of forward-looking statements. The Company does not undertake to update any forward-looking statements.

Contact Person: Harold T. Keen Regina J Smith
President and CEO Financial director
(919) 938-3101 (919) 938-3101

KS Bancorp, Inc. and subsidiary
Consolidated statements of financial position
September 30, 2021 The 31st of December,
(unaudited) 2020 *
(dollars in thousands)
ASSETS
Cash and bank receivables:
Interests $ 107,437 $ 24,720
Not earning interest 3 150 3 128
A term deposit 2,600 100
Available-for-sale investment securities at fair value 79,972 71 714
Federal Home Loan Bank shares, at cost 1,443 1,851
Pre-sold mortgages in 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
Assets seized, 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 EQUITY
Liabilities
Deposits $ 475,946 $ 402,523
Long term loans 43,248 47,248
Accrued interest payable 233 246
Accrued charges and other liabilities 4,082 3,790
Total responsibilities 523,509 453,807
Equity:
Ordinary shares, without par value, authorized 20,000,000 shares;
1,107,776 shares issued and outstanding as of September 30, 2021 and December 31, 2020 1,359 1,359
Substantially restricted retained earnings 33,440 29,220
Cumulative other comprehensive income 850 1,442
Total equity for shareholders 35,649 32,021
Total liabilities and 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 dividends:
Loans $ 4 744 $ 4,280 13,691 12 658
Investment security
Taxable 272 269 786 899
Tax exempt 155 57 393 138
Dividends ten 21 49 66
Interest-bearing deposits 27 4 48 18
Total interest and dividend income 5 208 4,631 14 967 13,779
Interest charges:
Deposits 249 521 799 1,858
Loans 276 314 871 1,026
Total interest charges 525 835 1,670 2 884
Net interest income 4,683 3 796 13,297 10,895
Allowance for loan losses 123 45 369 160
Net interest income after
allowance for loan losses 4,560 3 751 12 928 10,735
Non-interest income:
Service charges on deposit accounts 281 352 843 1,020
Pre-sold mortgage costs 5 51 54 85
Gain (loss) on sale of investments 4 4
Other income 472 338 1,244 1,025
Total non-interest income 758 745 2 141 2,134
Non-interest charges:
Benefits and compensation 1,935 1,838 5 634 5 433
Occupancy and equipment 394 347 1,122 1,084
Costs of data processing and external services 241 246 702 700
Advertising 22 17 48 60
Other 592 587 1644 1,722
Total non-interest charges 3 184 3,035 9,150 8,999
Income before taxes 2,134 1461 5,919 3,870
Income tax 449 316 1,256 832
Net revenue $ 1,685 $ 1,145 $ 4,663 $ 3,038
Basic and diluted earnings per share $ 1.52 $ 1.03 $ 4.21 $ 2.74

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