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

SMITHFIELD, N.C., April 21, 2022 (GLOBE NEWSWIRE) -- KS Bancorp, Inc. (the “Company”) (OTCBB: KSBI), parent company of KS Bank, Inc. (the “Bank”), announced unaudited results for the first quarter of 2022.

The Company reported net income of $1,367,000 or $1.23 per diluted share, for the three months ended March 31, 2022, compared to net income of $1,459,000 or $1.32 per diluted share, for the three months ended March 31, 2021. Comparing the first quarter 2022 to the first quarter of 2021, net income was $92,000 less, which was primarily attributed to $110,400 income from the Payroll Protection Plan (PPP) loans recognized in the first quartet of 2021.

Net interest income for the three months ended March 31, 2022 and March 31, 2021 was $4.2 million. Noninterest income for the three months ended March 31, 2022 was $802,000, compared to $675,000 for the comparable period ended March 31, 2021. In the first quarter of 2022, there was a gain of $65,000 realized for prepayment of $24 million of Federal Home Loan Bank (FHLB) borrowings. Noninterest expense was $3.3 million for the three months ended March 31, 2022, as compared $2.9 million in the comparable period in 2021. The Company did not record any provision for loan losses during the first quarter 2022, compared to $123,000 in the first quarter of 2021.

The Company’s unaudited consolidated total assets increased $3.2 million, to $574.4 million at March 31, 2022, compared to $571.2 million at December 31, 2021. Net loan balances increased by $2.5 million, to $348.1 million at March 31, 2022, compared to $345.6 million at December 31, 2021. The Company’s investment securities totaled $102.6 million at March 31, 2022, compared to $88.3 million at December 31, 2021. Total deposits increased $29.6 million or 6.0% to $517.0 million at March 31, 2022, compared to $487.4 million at December 31, 2021. For the three months ended March 31, 2022, there was a $29.7 million increase in core deposits and a $1.5 million decrease in brokered funding. Long-term borrowings decreased $24 million to $18 million at March 31, 2022 compared to $42 million at December 31, 2021. Total stockholders’ equity decreased $2.7 million to $33.9 million at March 31, 2022, from $36.6 million at December 31, 2021. The decrease in stockholders equity in primarily attributable to the change in accumulated other comprehensive income of $3.9 million in the first quarter of 2022, which is partially offset by increase in net income of $1.2 million.
        
Nonperforming assets consisted of $888,000 nonaccrual loans at March 31, 2022, representing less than 0.50% of the Company’s total assets. The Company had $621,000 foreclosed real estate owned at March 31, 2022. The allowance for loan losses at March 31, 2022 totaled $5.0 million, or 1.42% of total loans.

Commenting on the first quarter results, Harold Keen, President and CEO of the Company, stated, “During the first quarter, after a two year period of stress from COVID-19, payroll protection loans, and significant deposit growth, it is encouraging to be able to report the success of a more moderate quarter. Continued growth in low-cost deposits allowed a reduction in bank borrowings, which will reduce interest expense for future quarters. We continue to be very positive about the growth in our market area and the growth prospects for KS Bancorp.”

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 April 29, 2022 with payment to be made on May 9, 2022.  

KS Bank continues to be well-capitalized according to regulatory standards with total risk-based capital of 13.98%, tier 1 risk- based capital of 12.73%, common equity tier 1 risk- based capital of 12.73%, and a tier 1 leverage ratio of 8.24% at March 31, 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. 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.