KS Bancorp, Inc. (KSBI) Reports Strong Growth in Assets, Loans, Deposits and Equity for the Third Quarter of 2026

The quarterly dividend rises approximately 6.0%, while higher operating expenses and credit-loss provisions partly offset income growth.

Rhea-AI Summary

KS Bancorp (KSBI) reported third-quarter 2026 net income of $2.9 million, up 15.0% from the same period a year earlier. Diluted earnings per share rose to $2.58 from $2.24. Net interest income before credit-loss provisions increased 18.5% to $8.6 million, while noninterest expenses rose to $5.8 million from $4.9 million.

Nine-month net income increased 22.0% to $8.3 million, with diluted earnings per share of $7.49 versus $6.13. At September 30, assets reached $943.7 million, net loans $753.7 million and deposits $861.6 million, up 14.7%, 13.5% and 15.0%, respectively, from December 31, 2025. Equity increased to $60.3 million from $55.8 million. Long-term borrowings rose by $3.0 million following a June subordinated debt issuance.

The quarterly dividend increased from $0.34 to $0.36 per share, payable November 12, 2026, to shareholders of record November 2.

16 points · 0 major

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0 major · 8 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter net income increased 15.0% to $2.9 million year over year.
• Moderate pointThird-quarter net interest income before provisions increased 18.5% to $8.6 million year over year.
• Moderate pointNet loans grew 13.5% to $753.7 million at September 30, 2026, from December 31, 2025.
• Moderate pointDeposits increased 15.0% to $861.6 million at September 30, 2026, from December 31, 2025.
• Moderate pointTotal assets increased 14.7% to $943.7 million at September 30, 2026, from December 31, 2025.

11 minor points

• Minor pointThird-quarter diluted earnings per share rose to $2.58 from $2.24 a year earlier.
• Minor pointNine-month net income increased 22.0% to $8.3 million year over year.
• Minor pointNine-month diluted earnings per share rose to $7.49 from $6.13 a year earlier.
• Minor pointNine-month net interest income before provisions increased 20.1% to $24.6 million year over year.
• Minor pointStockholders' equity increased to $60.3 million from $55.8 million between December 31, 2025, and September 30, 2026.
• Minor pointQuarterly dividend increased approximately 6.0%, from $0.34 to $0.36 per share; calendar-year 2026 dividends increased 18.0%.
• Minor pointThird-quarter noninterest income rose to $1.142 million from $1.010 million a year earlier.
• Minor pointNine-month noninterest income rose to $3.232 million from $2.982 million a year earlier.
• Minor pointKS Bank's Community Bank Leverage Ratio increased to 9.14% at September 30, 2026, from 9.02% at year-end 2025.
• Minor pointCash and due from banks increased between December 31, 2025, and September 30, 2026, in both interest-earning and noninterest-earning balances.
• Minor point. Forward-looking: it has not happened yet and may not happen.KS Bank announced planned expansion into Roseboro and Sampson County, North Carolina.

Negative

• Moderate pointThird-quarter noninterest expenses increased to $5.758 million from $4.875 million a year earlier.
• Moderate pointThird-quarter interest expense increased to $4.807 million from $3.878 million a year earlier.
• Moderate pointLong-term borrowings increased $3.0 million to $14.248 million from year-end 2025 following June 2026 subordinated debt issuance. 3.5% of market cap
• Minor pointNine-month noninterest expenses increased to $16.222 million from $13.919 million a year earlier.
• Minor pointThird-quarter credit-loss provision increased to $335 thousand from $277 thousand a year earlier.

3 minor points

• Minor pointNine-month credit-loss provision increased to $999 thousand from $810 thousand a year earlier.
• Minor pointNine-month interest expense increased to $13.949 million from $11.056 million a year earlier.
• Minor pointAccumulated other comprehensive loss widened to $9.128 million at September 30, 2026, from $6.329 million at year-end 2025.

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SMITHFIELD, NC / ACCESS Newswire / October 27, 2026 / KS Bancorp, Inc. (the "Company") (OTCID:KSBI), parent company of KS Bank, Inc. (the "Bank"), announced today financial results for the quarter and nine months ended September 30, 2026.

Financial Highlights

• Net income increased 15.0% to $2.9 million in the third quarter of 2026.
• Earnings per share increased to $2.58, compared to $2.24 in the prior‑year quarter.
• Net interest income before the provision increased 18.5% year over year to $8.6 million.
• Net income increased 22.0% year over year to $8.3 million for the nine months ended September 30, 2026.
• Total assets increased to $943.7 million, up $121.1 million, or 14.7%, from December 31, 2025.
• Net loans grew to $753.7 million, an increase of $89.5 million, or 13.5%, from December 31, 2025.
• Total deposits increased 15.0% to $861.6 million, an increase of $112.0 million from December 31, 2025.

The Company reported net income totaling $2.9 million, or $2.58 per diluted share, for the three months ended September 30, 2026, compared to $2.5 million, or $2.24 per diluted share, for the same period in 2025. The increase was driven primarily by strong growth in net interest income, partially offset by higher operating expenses reflecting continued investment in personnel, technology, and infrastructure. Net interest income increased to $8.6 million, up $1.3 million, or 18.5%, from the third quarter of 2025. The provision for credit losses was $335 thousand for the quarter, reflecting continued loan growth and management's assessment of current economic conditions and portfolio credit quality. Noninterest income remained stable at $1.1 million for the three months ended September 30, 2026, and September 30, 2025. Noninterest expense increased to $5.8 million, compared to $4.9 million in the third quarter of 2025, primarily due to compensation and benefits, occupancy costs, and technology‑related expenses.

Net income totaled $8.3 million, or $7.49 per diluted share, for the nine months ended September 30, 2026, compared to $6.8 million, or $6.13 per diluted share, for the same period in 2025. For the nine months ended September 30, 2026, net interest income before the provision for credit losses was $24.6 million, compared to $20.5 million for the nine months ended September 30, 2025, representing a 20.1% increase. Noninterest income was $3.2 million for the nine months ended September 30, 2026, compared to $3.0 million for the same period in 2025. Noninterest expense was $16.2 million for the nine months ended September 30, 2026, compared to $13.9 million for the same period in 2025.

As of September 30, 2026, the Company's unaudited consolidated total assets were $943.7 million, an increase of $121.1 million from $822.6 million at December 31, 2025. Driven by continued loan demand across the Company's branch network, net loan balances grew $89.5 million to $753.7 million, compared to $664.2 million at December 31, 2025. The Company's investment securities totaled $93.7 million at September 30, 2026, compared to $95.2 million at December 31, 2025.

Total deposits increased $112.0 million to $861.6 million at quarter‑end, reflecting continued customer confidence and strong market penetration throughout the Bank's service area. Liquidity remained solid, with $66.6 million in cash and due from banks. Long-term borrowings increased $3.0 million to $14.2 million at September 30, 2026, compared to $11.2 million at December 31, 2025. The increase was due to a $3 million subordinated debt issuance in June 2026.

Stockholders' equity increased $4.5 million to $60.3 million as of September 30, 2026, from $55.8 million at December 31, 2025, reflecting strong retained earnings and overall balance sheet health.

KS Bank continues to be well-capitalized according to regulatory standards, with a Community Bank Leverage Ratio of 9.14% as of September 30, 2026, compared to 9.02% as of December 31, 2025.

The Company also announced today that its Board of Directors declared a quarterly dividend of $0.36 per share for stockholders of record as of November 2, 2026, with payment to be made on November 12, 2026.

Commenting on the third quarter results, Earl W. Worley, Jr., President and CEO of the Company, stated, "KS Bancorp delivered another quarter of strong financial performance, highlighted by double-digit growth in earnings, loans, deposits, assets, and stockholders' equity. Through the first nine months of 2026, total assets increased 14.7% to $943.7 million, loans grew 13.5% to $753.7 million, and deposits expanded 15.0% to $861.6 million. These results reflect the successful execution of our strategic plan, disciplined balance sheet management, and the dedication of our employees to serving customers and communities across our markets.

We were also pleased to continue investing in the future of our franchise through strategic expansion initiatives, including the opening of our Lillington Branch in August and the announcement of our entry into the Roseboro and Sampson County, North Carolina market. These opportunities reinforce our commitment to bringing relationship-based community banking to North Carolina communities while creating long-term value for our customers and shareholders.

Reflecting the Company's strong operating performance, capital position, and confidence in our future, our Board of Directors approved an increase in the quarterly cash dividend from $0.34 to $0.36 per share, an increase of approximately 6.0%. For calendar year 2026, shareholders have had an 18.0% increase in dividends over the previous year. This action demonstrates the Board's confidence in the Company's long-term outlook and our ongoing commitment to delivering consistent returns to shareholders while continuing to invest in the growth and strength of KS Bank.

While we remain optimistic about our long-term prospects, economic uncertainty persists. Future results could be impacted by additional interest rate increases by the Federal Reserve, competitive pressures on deposit pricing, changes in customer borrowing activity, and broader economic conditions. Regardless of the environment, we remain committed to maintaining strong capital and liquidity, managing risk prudently, supporting our communities, and creating sustainable long-term value for our shareholders."

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. Twelve full-service branches are located in Kenly, Selma, Clayton, Garner, Goldsboro, Wilson, Wendell, Smithfield, Four Oaks, Dunn, Bailey and Lillington, 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.		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

		September 30,				December 31,
		2026				2025*
		(unaudited)
		(Dollars in thousands)
ASSETS
Cash and due from banks:
Interest-earning		$	59,650			$	30,244
Noninterest-earning			6,156				5,259
Time Deposit			752				746
Investment securities available for sale, at fair value			93,710				95,158
Federal Home Loan Bank stock, at cost			590				498
Loans			759,514				669,267
Less allowance for loan losses			(5,833	)			(5,062	)
Net loans			753,681				664,205
Accrued interest receivable			3,308				3,078
Foreclosed assets, net			400				500
Property and equipment, net			14,874				13,603
Other assets			10,549				9,312
Total assets		$	943,670			$	822,603
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits		$	861,607			$	749,601
Short-term borrowings		$	-				-
Long-term borrowings			14,248				11,248
Accrued interest payable			458				405
Accrued expenses and other liabilities			7,057				5,505
Total liabilities			883,370				766,759
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 September 30, 2026 and December 31, 2025, respectively			1,359				1,359
Retained earnings, substantially restricted			68,069				60,814
Accumulated other comprehensive Income (loss)			(9,128	)			(6,329	)
Total stockholders' equity			60,300				55,844
Total liabilities and stockholders' equity		$	943,670			$	822,603

* Derived from audited financial statements

KS Bancorp, Inc and Subsidiary
Consolidated Statement of Income

		Three Months Ended								Nine Months Ended
		30-Sep								30-Sep
		2026				2025				2026				2025
		(In thousands, except per share data)
Interest and dividend income:
Loans		$	12,359			$	10,317				35,067				28,877
Investment securities
Taxable			661				575				1,903				1,710
Tax-exempt			181				183				548				544
Dividends			8				6				23				18
Interest-bearing deposits			213				70				1,037				413
Total interest and dividend income			13,422				11,151				38,578				31,562
Interest expense:
Deposits			4,568				3,636				13,396				10,460
Borrowings			239				242				553				596
Total interest expense			4,807				3,878				13,949				11,056
Net interest income			8,615				7,273				24,629				20,506
Provision for loan losses			335				277				999				810
Net interest income after
provision for loan losses			8,280				6,996				23,630				19,696
Noninterest income:
Service charges on deposit accounts			426				367				1,187				1,057
Fees from trust services			508				432				1,411				1,174
Other income			208				211				634				751
Total noninterest income			1,142				1,010				3,232				2,982
Noninterest expenses:
Compensation and benefits			3,406				3,015				9,690				8,567
Occupancy and equipment			764				698				2,232				1,969
Data processing & outside service fees			366				298				1,058				853
Advertising			130				81				244				210
Other			1,092				783				2,998				2,320
Total noninterest expenses			5,758				4,875				16,222				13,919
Income before income taxes			3,664				3,131				10,640				8,759
Income tax			810				650				2,345				1,962
Net income		$	2,854			$	2,481			$	8,295			$	6,797
Basic and Diluted earnings per share		$	2.58			$	2.24			$	7.49			$	6.13

SOURCE: KS Bancorp, Inc.

View the original press release on ACCESS Newswire

FAQ

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What were KS Bancorp's third-quarter 2026 earnings?

KS Bancorp earned $2.9 million, or $2.58 per diluted share, in the third quarter of 2026, compared with $2.5 million, or $2.24 per diluted share, a year earlier. Net income increased 15.0% year over year.

How much is KS Bancorp's increased dividend, and when will it be paid?

KS Bancorp increased its quarterly cash dividend to $0.36 per share, payable November 12, 2026, to shareholders of record November 2, 2026. The dividend rose from $0.34 per share, an increase of approximately 6.0%.