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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.

Contact: Harold T. KeenRegina 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, 2022  December 31,
 (unaudited)  2021*
      
 (Dollars in thousands)
ASSETS     
      
Cash and due from banks:     
Interest-earning$97,048  $111,762 
Noninterest-earning 3,193   2,626 
   Time Deposit 5,100   5,100 
Investment securities available for sale, at fair value 102,573   88,320 
Federal Home Loan Bank stock, at cost 598   1,443 
Loans 353,147   350,667 
Less allowance for loan losses (5,026)  (5,023)
  Net loans 348,121   345,644 
   
Accrued interest receivable 1,702   1,543 
Foreclosed assets, net 621   621 
Property and equipment, net 8,954   8,928 
Other assets 6,501   5,238 
   
    Total assets$ 574,411  $ 571,225 
   
LIABILITIES AND STOCKHOLDERS' EQUITY  
   
Liabilities  
  Deposits$516,990  $487,437 
  Short-term borrowings$1,000  $1,000 
  Long-term borrowings 18,248   42,248 
  Accrued interest payable 109   216 
  Accrued expenses and other liabilities 4,162   3,679 
   
    Total liabilities 540,509   534,580 
   
Stockholder's Equity:  
   Common stock, no par value, authorized 20,000,000 shares; 
1,107,776 shares issued and outstanding at March 31, 2022 and 1,107,776 shares issued and outstanding at December 31, 2021, respectively 1,359   1,359 
   Retained earnings, substantially restricted 35,883   34,694 
   Accumulated other comprehensive (loss) gain (3,340)  592 
   
    Total stockholders' equity 33,902   36,645 
   
    Total liabilities and stockholders' equity$ 574,411  $ 571,225 
   
* Derived from audited financial statements  


KS Bancorp, Inc and Subsidiary
Consolidated Statements of Income (Unaudited)
    
  Three Months Ended
  31-Mar
   2022  2021
  (In thousands, except per share data)
Interest and dividend income:  
 Loans$4,130 $4,387
 Investment securities  
 Taxable 322  263
 Tax-exempt 174  100
 Dividends 21  21
 Interest-bearing deposits 44  6
   Total interest and dividend income 4,691  4,777
    
Interest expense:  
 Deposits 219  286
 Borrowings 238  299
   Total interest expense 457  585
    
   Net interest income 4,234  4,192
    
Provision for loan losses -  123
    
   Net interest income after  
     provision for loan losses 4,234  4,069
    
Noninterest income:  
 Service charges on deposit accounts 293  283
 Fees from presold mortgages 4  32
 Other income 505  360
   Total noninterest income 802  675
    
Noninterest expenses:  
 Compensation and benefits 2,043  1,821
 Occupancy and equipment 484  364
 Data processing & outside service fees 205  229
 Advertising 18  11
 Other 566  471
   Total noninterest expenses 3,316  2,896
    
   Income before income taxes 1,720  1,848
    
Income tax 353  389
    
   Net income$ 1,367 $ 1,459
    
 Basic and Diluted earnings per share$ 1.23 $ 1.32
    


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