KS Bancorp, Inc. (KSBI) Reports 50% Increase in Net Income for First Quarter 2025 and Declares Quarterly Dividend

SMITHFIELD, NC / ACCESS Newswire / April 17, 2025 / KS Bancorp, Inc. (the "Company") (OTC PINK:KSBI), the parent company of KS Bank, Inc. (the "Bank"), announced unaudited results for the first quarter of 2025.

The Company reported net income of $2.1 million or $1.87 per diluted share for the three months ended March 31, 2025, compared to net income of $1.4 million or $1.25 per diluted share for the three months ended March 31, 2024.

Net interest income before the provision for credit losses for the three months ended March 31, 2025, was $6.3 million, compared to $5.1 million on March 31, 2024. Noninterest income for the three months ended March 31, 2025, was $912,000, compared to $829,000 for the comparable period ended March 31, 2024. Noninterest expense was $4.4 million for the three months ended March 31, 2025, compared to $4.0 million in the comparable period in 2024.

The Company's unaudited consolidated total assets increased by $31.2 million to $722.1 million as of March 31, 2025, compared to $690.9 million on December 31, 2024. Net loan balances increased by $7.1 million to $561.6 million as of March 31, 2025, compared to $554.5 million on December 31, 2024. The Company's investment securities totaled $96.5 million as of March 31, 2025, compared to $96.0 million on December 31, 2024. Total deposits increased by $39.4 million to $657.6 million as of March 31, 2025, compared to $618.2 million on December 31, 2024. The increase in deposits included a $29.3 million increase or 5.2% in core deposits. Short-term borrowings decreased by $11.0 million in the first quarter of 2025. Total stockholders' equity increased $2.2 million to $47.5 million as of March 31, 2025, from $45.3 million on December 31, 2024.

As of March 31, 2025, nonperforming assets consisted of nonaccrual loans of $703,000, representing less than 0.10% of the Company's total assets. No foreclosed real estate was owned as of March 31, 2025. The allowance for credit losses as of March 31, 2025, totaled $4.4 million, or 0.79% of total loans.

Commenting on the first quarter results, Earl W. Worley, Jr., President and CEO of the Company, stated, "We are proud to report another strong quarter for KS Bancorp, highlighted by a 50% increase in net income compared to the same quarter last year. This performance reflects our team's commitment to disciplined lending, strategic deposit growth, and operational excellence. Despite a challenging interest rate environment, we delivered solid financial results, including a $39.4 million increase in deposits and a $7.1 million rise in net loans. These outcomes underscore the strength of our balance sheet and position us well to continue supporting the communities of eastern North Carolina with confidence and stability. Looking ahead, we remain cautiously optimistic, recognizing that broader economic conditions and the ongoing actions of the Federal Reserve will influence future results."

In addition, the Company announced today that its Board of Directors has declared a quarterly dividend of $0.27 per share for stockholders of record as of April 25, 2025, with payment to be made on May 5, 2025.

KS Bank continues to be well capitalized according to regulatory standards, with a Community Bank Leverage Ratio of 9.31% as of March 31, 2025, compared to 9.24% on December 31, 2024.

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 that has served the citizens of eastern North Carolina since 1924. The Bank offers a broad range of personal and business banking products and services, mortgages, and trust services. There are ten full-service branches located in Kenly, Selma, Clayton, Garner, Goldsboro, Wilson, Wendell, Smithfield, Four Oaks, and Dunn, North Carolina. For more information, visit www.ksbankinc.com.

For additional information, contact Regina J. Smith, Chief Financial Officer at 919.938.3101

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.

KS Bancorp, Inc. and Subsidiary
Consolidated Statements of Financial Condition

KS Bancorp, Inc and Subsidiary
Consolidated Statement of Income

SOURCE: KS Bancorp, Inc.