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

Rhea-AI Summary

KS Bancorp (OTCID:KSBI) reported strong Q2 2025 financial results, with net income reaching $2.2 million ($2.02 per diluted share), a 35% increase from Q2 2024. Year-to-date net income grew 41% to $4.3 million ($3.89 per diluted share).

The bank's total assets increased to $727.3 million, with net loans up by $33.4 million to $587.9 million. Core deposits grew by 6%, and the company maintained strong asset quality with nonperforming assets below 0.10% of total assets. The Board declared a quarterly dividend of $0.28 per share.

Notably, KS Bank expanded its footprint by opening its eleventh full-service branch in Bailey, marking its first location in Nash County, North Carolina. The bank maintains a solid Community Bank Leverage Ratio of 9.22%.

Positive

• Net income increased 35% in Q2 2025 and 41% year-to-date
• Net interest income grew 22.8% in Q2 2025
• Core deposits increased by 6% ($34.2 million)
• Strong asset quality with nonperforming assets below 0.10% of total assets
• Geographic expansion with new branch in Nash County
• Total assets grew by $36.4 million to $727.3 million

Negative

• Non-interest expenses increased by 13% to $4.7 million in Q2
• Provision for loan losses increased to $338,000 from $114,000 year-over-year
• Community Bank Leverage Ratio slightly decreased to 9.22% from 9.24%

SMITHFIELD, NC / ACCESS Newswire / July 23, 2025 / KS Bancorp, Inc. (the "Company") (OTCID:KSBI), parent company of KS Bank, Inc. (the "Bank"), announced unaudited results for the second quarter of 2025.

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.

Contact: Earl W. Worley, Jr. President and Chief Executive Officer (919) 938-3101

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

KS Bancorp, Inc. and Subsidiary
Consolidated Statements of Financial Condition
		June 30, 2025				December 31,
		(unaudited)				2024*
		(Dollars in thousands)
ASSETS
Cash and due from banks:
Interest-earning		$	13,771			$	10,627
Noninterest-earning			4,806				4,897
Time Deposit			723				523
Investment securities available for sale, at fair value			94,545				95,946
Federal Home Loan Bank stock, at cost			498				469
Loans			592,595				558,779
Less allowance for loan losses			(4,667	)			(4,259	)
Net loans			587,928				554,520
Accrued interest receivable			2,813				2,655
Foreclosed assets, net			500				-
Property and equipment, net			12,334				12,231
Other assets			9,342				8,981
Total assets		$	727,260			$	690,849
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits		$	661,690			$	618,156
Short-term borrowings		$	-			$	11,144
Long-term borrowings			11,248				11,248
Accrued interest payable			322				323
Accrued expenses and other liabilities			5,284				4,675
Total liabilities			678,544				645,546
Stockholder's Equity:
Preferred stock, no par value, 500,000 shares authorized; none issued and outstanding
Common stock, no par value, 3,500,000 shares authorized; 1,107,776 shares issued and outstanding at June, 2025 and December 31, 2024, respectively			1,359				1,359
Retained earnings, substantially restricted			56,392				52,675
Accumulated other comprehensive Income (loss)			(9,035	)			(8,731	)
Total stockholders' equity			48,716				45,303
Total liabilities and stockholders' equity		$	727,260			$	690,849
* Derived from audited financial statements

KS Bancorp, Inc and Subsidiary
Consolidated Statement of Income
		Three Months Ended								Six Months Ended
		30-Jun								30-Jun
		2025				2024				2025				2024
		(In thousands, except per share data)
Interest and dividend income:
Loans		$	9,604			$	7,784				18,560				15,237
Investment securities
Taxable			575				513				1,135				1,013
Tax-exempt			180				202				361				404
Dividends			6				6				12				12
Interest-bearing deposits			212				277				343				397
Total interest and dividend income			10,577				8,782				20,411				17,063
Interest expense:
Deposits			3,510				3,132				6,824				5,938
Borrowings			166				192				354				565
Total interest expense			3,676				3,324				7,178				6,503
Net interest income			6,901				5,458				13,233				10,560
Provision for loan losses			338				114				533				283
Net interest income after
provision for loan losses			6,563				5,344				12,700				10,277
Noninterest income:
Service charges on deposit accounts			365				320				690				634
Fees from trust services			371				334				742				651
Other income			324				209				540				407
Total noninterest income			1,060				863				1,972				1,692
Noninterest expenses:
Compensation and benefits			2,883				2,513				5,552				5,015
Occupancy and equipment			611				596				1,271				1,153
Data processing & outside service fees			291				244				555				479
Advertising			76				64				129				110
Other			806				712				1,537				1,354
Total noninterest expenses			4,667				4,129				9,044				8,111
Income before income taxes			2,956				2,078				5,628				3,858
Income tax			715				421				1,312				815
Net income		$	2,241			$	1,657			$	4,316			$	3,043
Basic and Diluted earnings per share		$	2.02			$	1.50			$	3.89			$	2.75

SOURCE: KS Bancorp, Inc.

View the original press release on ACCESS Newswire

FAQ

What was KS Bancorp's (KSBI) net income for Q2 2025?

KS Bancorp reported net income of $2.2 million ($2.02 per diluted share) for Q2 2025, representing a 35% increase from Q2 2024.

How much did KSBI's core deposits grow in the first half of 2025?

KS Bancorp's core deposits increased by $34.2 million, representing a 6% growth in the first half of 2025.

What is the quarterly dividend announced by KS Bancorp (KSBI)?

KS Bancorp announced a quarterly dividend of $0.28 per share, payable on August 11, 2025, to stockholders of record as of August 1, 2025.

Where did KS Bancorp open its new branch in 2025?

KS Bancorp opened its eleventh full-service branch in Bailey, North Carolina, marking its first location in Nash County.

What is KS Bancorp's (KSBI) asset quality status as of Q2 2025?

KS Bancorp maintained strong asset quality with nonperforming assets below 0.10% of total assets, consisting of $77,000 in nonaccrual loans and $500,000 in foreclosed real estate.