KS Bancorp, Inc. (KSBI) Announces First Quarter 2021 Financi...| MENAFN.COM

Wednesday, 18 May 2022 05:44 GMT

KS Bancorp, Inc. (KSBI) Announces First Quarter 2021 Financial Results and Cash Dividend Other OTC:KSBI


(MENAFN- GlobeNewsWire - Nasdaq) SMITHFIELD, N.C., April 26, 2021 (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 2021.

The Company reported net income of $1,459,000 or $1.32 per diluted share, for the three months ended March 31, 2021, an increase of 58.2% compared to net income of $922,000 or $0.83 per diluted share, for the three months ended March 31, 2020.

Net interest income for the three months ended March 31, 2021, was $4.2 million as compared to $3.5 million for the comparable period in 2020. Noninterest income for the three months ended March 31, 2021 was $675,000, compared to $708,000 for the comparable period ended March 31, 2020. Noninterest expense was $2.9 million for the three months ended March 31, 2021, as compared $3.0 million in the comparable period in 2020. The Company recorded a provision for loan losses of $123,000 during the first quarter 2021, compared to $45,000 in the first quarter of 2020.

The Company's unaudited consolidated total assets increased $29.8 million, to $515.6 million at March 31, 2021, compared to $485.8 million at December 31, 2020. Net loan balances decreased by $8.1 million, to $360.5 million at March 31, 2021, compared to $368.6 million at December 31, 2020. The decrease in loans was primarily due to forgiveness of payroll protection plan loans (PPP). The balance of the first round PPP loans at March 31, 2021 was $15.8 million compared to $26.5 million at December 31, 2020. During the first quarter of 2021, the Bank participated in the second around of PPP loans providing an additional $5.8 million in PPP loans. The Company's investment securities totaled $71.5 million at March 31, 2021, compared to $71.7 million at December 31, 2020. Total deposits increased $28.9 million or 7.2% to $431.4 million at March 31, 2021, compared to $402.5 million at December 31, 2020. For the three months ended March 31, 2021, there was a $32.1 million increase in core deposits and a $2.6 million decrease in brokered funding. Total stockholders' equity increased $568,000 or 1.77% from $32.0 million at December 31, 2020 to $32.6 million at March 31, 2021.

Nonperforming assets consisted of $561,000 nonaccrual loans at March 31, 2021, representing less than 0.50% of the Company's total assets. The Company had $621,000 foreclosed real estate owned at March 31, 2021. The allowance for loan losses at March 31, 2021 totaled $4.8 million, or 1.30% of total loans, including the PPP loans originated. Excluding the PPP from the total loans, the allowance for loan losses at March 31, 2021 was 1.38% of loans.

Commenting on the first quarter results, Harold Keen, President and CEO of the Company and the Bank, stated, 'During the first quarter, balance sheet growth continued to be very strong for KS Bank. Deposit growth was exceptional throughout 2020 and continued in the first quarter of 2021. Earnings were above projections and very encouraging for the year 2021. We are very proud of the efforts made by the KS Bank team to support our customers during this period influenced by Covid-19.'

In addition, the Company announced today that its Board of Directors has declared a quarterly dividend of $0.12 per share for stockholders of record as of April 30, 2021 with payment to be made on May 10, 2021.

KS Bank continues to be well-capitalized according to regulatory standards with total risk-based capital of 13.39%, tier 1 risk- based capital of 12.14%, common equity tier 1 risk- based capital of 12.14%, and a tier 1 leverage ratio of 8.77% at March 31, 2021. 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 .

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 Regina J Smith
President and Chief Executive Officer Chief Financial Officer
(919) 938-3101 (919) 938-3101


KS Bancorp, Inc. and Subsidiary
Consolidated Statements of Financial Condition
March 31, 2021 December 31,
(unaudited) 2020*
(Dollars in thousands)
ASSETS
Cash and due from banks:
Interest-earning $ 62,817 $ 24,720
Noninterest-earning 2,945 3,128
Time Deposit 100 100
Investment securities available for sale, at fair value 71,460 71,714
Federal Home Loan Bank stock, at cost 1,555 1,851
Presold mortgages in process of settlement 217 -
Loans 365,215 373,237
Less allowance for loan losses (4,764 ) (4,644 )
Net loans 360,451 368,593
Accrued interest receivable 1,925 1,934
Foreclosed assets, net 621 621
Property and equipment, net 8,987 8,709
Other assets 4,528 4,458
Total assets $ 515,606 $ 485,828
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits $ 431,363 $ 402,523
Long-term borrowings 47,248 47,248
Accrued interest payable 236 246
Accrued expenses and other liabilities 4,170 3,790
Total liabilities 483,017 453,807
Stockholder's Equity:
Common stock, no par value, authorized 20,000,000 shares;
1,107,776 shares issued and outstanding at March 31, 2021 and 1,107,776 shares issued and outstanding at December 31, 2020 1,359 1,359
Retained earnings, substantially restricted 30,546 29,220
Accumulated other comprehensive loss 684 1,442
Total stockholders' equity 32,589 32,021
Total liabilities and stockholders' equity $ 515,606 $ 485,828
* Derived from audited financial statements


KS Bancorp, Inc and Subsidiary
Consolidated Statements of Income (Unaudited)
Three Months Ended
March
2021 2020
(In thousands, except per share data)
Interest and dividend income:
Loans $ 4,387 $ 4,170
Investment securities
Taxable 263 331
Tax-exempt 100 40
Dividends 21 24
Interest-bearing deposits 6 11
Total interest and dividend income 4,777 4,576
Interest expense:
Deposits 286 702
Borrowings 299 391
Total interest expense 585 1,093
Net interest income 4,192 3,483
Provision for loan losses 123 45
Net interest income after
provision for loan losses 4,069 3,438
Noninterest income:
Service charges on deposit accounts 283 352
Fees from presold mortgages 32 3
Other income 360 353
Total noninterest income 675 708
Noninterest expenses:
Compensation and benefits 1,821 1,810
Occupancy and equipment 364 363
Data processing & outside service fees 229 231
Advertising 11 29
Other 471 538
Total noninterest expenses 2,896 2,971
Income before income taxes 1,848 1,175
Income tax 389 253
Net income $ 1,459 $ 922
Basic and Diluted earnings per share $ 1.32 $ 0.83

Stay Connected

   

Newsletter