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.