KS Bancorp, Inc. (KSBI) Announces Second Quarter 2022 Financial Results and Cash Dividend

SMITHFIELD, N.C., July 22, 2022 (GLOBE NEWSWIRE) -- KS Bancorp, Inc. (the “Company”) (OTCBB: KSBI), parent company of KS Bank, Inc. (the “Bank”), announced unaudited results for the second quarter of 2022.

The Company reported net income of $1,795,000 or $1.62 per diluted share, for the three months ended June 30, 2022, compared to net income of $1,519,000 or $1.37 per diluted share, for the three months ended June 30, 2021. Comparing the second quarter 2022 to the second quarter of 2021, there was an increase in net income of $276,000. In the second quarter of 2021 there was $319,000 income from the Payroll Protection Plan (PPP) loans recognized.

Net interest income before the provision for loan losses for the three months ended June 30, 2022 was $4.8 million compared to $4.4 million at June 30, 2021. Noninterest income for the three months ended June 30, 2022 was $722,000, compared to $708,000 for the comparable period ended June 30, 2021. In the second quarter of 2022, there was a gain of $12,000 realized for prepayment of $8 million of Federal Home Loan Bank (FHLB) borrowings. Noninterest expense was $3.2 million for the three months ended June 30, 2022, as compared $3.1 million in the comparable period in 2021. The Company did not record any provision for loan losses during the second quarter 2022, compared to $123,000 in the second quarter of 2021.

For the six months ended June 30, 2022, net interest income before the provision for loan losses was $9.0 million, compared to $8.6 million for the six months ended June 30, 2021. The increase is primarily attributable to an increase in interest income from investments and a decrease in interest expense from the repayment of FHLB borrowings. Non-interest income was $1.5 million for the six month period ending June 30, 2022 compared to $1.4 million for the same period ended June 30, 2021. For the six months ended June 30, 2022, non-interest expenses was $6.5 million, compared to $6.0 million for the same period ending June 30, 2021.

The Company’s unaudited consolidated total assets decreased $16.5 million, to $554.7 million at June 30, 2022, compared to $571.2 million at December 31, 2021. The decrease in assets is primarily attributable to the repayment of $32 million in FHLB borrowings. Net loan balances increased by $22.4 million, to $368.0 million at June 30, 2022, compared to $345.6 million at December 31, 2021. The Company’s investment securities totaled $104.0 million at June 30, 2022, compared to $88.3 million at December 31, 2021. Total deposits increased $20.0 million to $507.4 million at June 30, 2022, compared to $487.4 million at December 31, 2021. For the six months ended June 30, 2022, there was a $19.9 million increase in core deposits and a $1.5 million decrease in brokered funding. Long-term borrowings decreased $31 million to $11 million at June 30, 2022 compared to $42 million at December 31, 2021. Total stockholders’ equity decreased $4.7 million to $31.9 million at June 30, 2022, from $36.6 million at December 31, 2021. The decrease in stockholders equity is primarily attributable to the change in accumulated other comprehensive income of $7.6 million in the second quarter of 2022, which is partially offset by an increase in retained earnings of $2.8 million.

Nonperforming assets consisted of $878,000 nonaccrual loans at June 30, 2022, representing less than 0.20% of the Company’s total assets. There was no foreclosed real estate owned at June 30, 2022. The allowance for loan losses at June 30, 2022 totaled $5.0 million, or 1.35% of total loans.

Commenting on the second quarter results, Harold Keen, President and CEO of the Company, stated, “During the second quarter, the Bank continued solid growth in both deposits and loans outstanding. Our emphasis on community banking relationships and service has resulted in significant growth. During the quarter, KS Bank opened a loan production office in Dunn, NC. The I-95 corridor in Johnston County and Harnett County is experiencing above average growth and we believe KS Bank can be supportive of that growth in the Dunn/Harnett County area.”

In addition, the Company announced today that its Board of Directors has declared a quarterly dividend of $0.20 per share for stockholders of record as of July 29, 2022 with payment to be made on August 8, 2022. The $0.20 per share dividend represents a 25% increase of the previous quarter’s dividend of $0.16 per share.

KS Bank continues to be well-capitalized according to regulatory standards with total risk-based capital of 13.77%, tier 1 risk-based capital of 12.52%, common equity tier 1 risk-based capital of 12.52%, and a tier 1 leverage ratio of 8.78% at June 30, 2022. 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. There is a loan production office in Dunn, NC which opened in April, 2022. 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 President and Chief Executive Officer (919) 938-3101 Regina J Smith Chief Financial Officer (919) 938-3101