Arizona Tribune - KS Bancorp, Inc. (KSBI) Reports 41% Year to Date Increase in Net Income and Expands Footprint into Nash County, North Carolina

The Company reported net income of $2.2 million or $2.02 per diluted share for the three months ended June 30, 2025, compared to net income of $1.7 million or $1.50 per diluted share for the three months ended June 30, 2024. This signifies a 35% increase in net income. Year-to-date net income was $4.3 million or $3.89 per diluted share, compared to $3.1 million, or $2.75 per diluted share, for the six months ended June 30, 2024. This signifies a 41% increase in net income year to date.

Net interest income before the provision for credit losses for the three months ended June 30, 2025, increased 22.8%. It was $6.9 million, compared to $5.5 million at June 30, 2024. Non-interest income for the three months ended June 30, 2025, was $1.1 million, compared to $863,000 for the comparable period ended June 30, 2024. Non-interest expense was $4.7 million for the three months ended June 30, 2025, compared to $4.1 million in the comparable period in 2024.

For the six months ending June 30, 2025, net interest income before the provision for credit losses was $13.2 million, compared to $10.6 million for the six months ending June 30, 2024, which was a 28.7% increase. Non-interest income was $2.0 million for the six months ending June 30, 2025, compared to $1.7 million for the same period ended June 30, 2024. For the six months ended June 30, 2025, non-interest expenses were $9.0 million, compared to $8.1 million for the same period ending June 30, 2024.

The Company's unaudited consolidated total assets increased by $36.4 million to $727.3 million as of June 30, 2025, compared to $690.9 million as of December 31, 2024. Net loan balances increased by $33.4 million to $587.9 million on June 30, 2025, compared to $554.5 million on December 31, 2024. The Company's investment securities totaled $94.5 million as of June 30, 2025, compared to $95.9 million as of December 31, 2024. Total deposits increased $43.5 million to $661.7 million as of June 30, 2025, compared to $618.2 million as of December 31, 2024. The increase in deposits included a $34.2 million increase or 6.0% in core deposits. For the six months ended June 30, 2025, short-term borrowings decreased $11.1 million. Total stockholders' equity increased $3.4 million to $48.7 million as of June 30, 2025, from $45.3 million as of December 31, 2024.

As of June 30, 2025, nonperforming assets consisted of nonaccrual loans totaling $77,000 and foreclosed real estate with a value of $500,000, representing less than 0.10% of the Company's total assets. The allowance for credit losses as of June 30, 2025, totaled $4.7 million, or 0.79% of total loans.

Commenting on the second quarter results, Earl W. Worley, Jr., President and CEO of the Company, stated, "We are pleased with our continued momentum through the first half of 2025, highlighted by a 35% increase in second quarter net income compared to the prior year. This strong performance reflects steady loan growth, disciplined expense control, and a 6% rise in core deposits, all of which reinforce the strength of our balance sheet and the dedication of our team. In addition to our financial results, we were proud to open our eleventh full-service branch in Bailey, North Carolina, our first in Nash County, North Carolina. The community's warm reception affirms the value of our relationship-driven approach to banking.

As we move into the second half of the year, we remain cautiously optimistic. While our fundamentals are sound and our strategic initiatives are progressing well, we recognize that ongoing economic uncertainty and future actions by the Federal Reserve may impact both interest rate trends and customer behavior. We will continue to manage risk carefully, remain flexible in our approach, and focus on delivering long-term value to our customers, communities, and shareholders."

In addition, the Company announced today that its Board of Directors has declared a quarterly dividend of $0.28 per share for stockholders of record as of August 1, 2025, with payment to be made on August 11, 2025.

KS Bank continues to be well-capitalized according to regulatory standards, with a Community Bank Leverage Ratio of 9.22% as of June 30, 2025, compared to 9.24% as of 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, as well as mortgage and trust services. Eleven full-service branches are located in Kenly, Selma, Clayton, Garner, Goldsboro, Wilson, Wendell, Smithfield, Four Oaks, Dunn, and Bailey, North Carolina. 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.

SOURCE: KS Bancorp, Inc.

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