KS Bancorp, Inc. (KSBI) Reports Strong Growth in Assets, Loans, Deposits and Equity for the First Half of 2026
Rhea-AI Summary
KS Bancorp (OTC:KSBI) reported second-quarter 2026 net income of $2.9 million, or $2.57 per diluted share, up from $2.02 a year earlier. For the first half of 2026, net income was $5.4 million, or $4.91 per diluted share, versus $4.3 million and $3.89 in 2025.
Net interest income before provision rose 19.1% in Q2 to $8.2 million and 21.0% to $16.0 million year-to-date. As of June 30, 2026, total assets were $875.5 million (+6.4% vs. year-end 2025), net loans $714.3 million (+7.5%), and deposits $784.1 million (+4.6%).
The company completed a $3.0 million private placement of subordinated debt, lifting long-term borrowings to $14.2 million, and downstreamed $3.0 million of capital to the bank, increasing stockholders’ equity to $60.7 million. The board approved a 13.3% increase in the quarterly dividend to $0.34 per share, payable August 6, 2026 to shareholders of record July 27, 2026. KS Bank remained well-capitalized with a Community Bank Leverage Ratio of 9.01% as of June 30, 2026.
Positive
- Q2 2026 EPS $2.57 vs. $2.02 in Q2 2025
- Six-month net income $5.4 million vs. $4.3 million in 2025
- Net interest income up 21.0% year-to-date to $16.0 million
- Total assets up 6.4% since year-end 2025 to $875.5 million
- Net loans up 7.5% since year-end 2025 to $714.3 million
- Dividend raised 13.3% to $0.34 per share quarterly
Negative
- Noninterest expenses up to $10.5 million from $9.0 million year-to-date
- Deposit interest expense increased to $8.8 million from $6.8 million year-to-date
- Long-term borrowings rose to $14.2 million from $11.2 million at year-end 2025
News Market Reaction – KSBI
In the Jul 24 session, KSBI gained 1.75%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
SMITHFIELD, NC / ACCESS Newswire / July 24, 2026 / KS Bancorp, Inc. (the "Company") (OTCID:KSBI), parent company of KS Bank, Inc. (the "Bank"), reported strong financial results for the second quarter and the year ended June 30, 2026.
Financial Highlights
Net income of
$2.9 million for the second quarter of 2026.Earnings per share of
$2.57 , compared to$2.02 in the prior‑year quarter.Net interest income before the provision increased
19.1% year over year to$8.2 million .Net income increased
26.1% year over year to$5.4 million .Total assets increased to
$875.5 million , up$52.9 million , or6.4% , from December 31, 2025.Net loans grew to
$714.3 million , an increase of$50.1 million , or7.5% , from December 31, 2025.Deposits totaled
$784.1 million , an increase of$34.5 million , or4.6% , from December 31, 2025.
Income Statement Review
The Company reported net income totaled
Net income totaled
Balance Sheet Performance
As of June 30, 2026, the Company's unaudited consolidated total assets were
Total deposits increased to
Stockholders' equity totaled
Management Commentary
Commenting on the second quarter results, Earl W. Worley, Jr., President and CEO of the Company, stated, "We are very pleased with our performance during the first half of 2026, which reflects the continued execution of our long-term strategic plan and the strength of our relationship banking model. Our strong earnings growth was driven by disciplined balance sheet management, continued expansion of net interest income, and the outstanding efforts of our employees to build lasting customer relationships throughout the markets we serve.
During the quarter, we successfully completed a
Reflecting the Company's continued financial strength and confidence in our future, our Board of Directors approved a
We remain committed to disciplined growth, maintaining exceptional asset quality, investing in our people and technology, and delivering the personalized service that has defined KS Bank for more than 102 years.
While our first-half of 2026 results were encouraging, we recognize that the economic outlook remains uncertain. Future financial performance will continue to be influenced by the interest rate environment, Federal Reserve policy decisions, competitive pricing pressures for deposits, and broader market volatility. Regardless of these external factors, we remain committed to prudent risk management, strong capital and liquidity, and creating long-term value for our shareholders while serving the financial needs of our customers and communities."
In addition, the Company announced today that its Board of Directors has declared a
KS Bank continues to be well-capitalized according to regulatory standards, with a Community Bank Leverage Ratio of
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. | Regina J Smith |
KS Bancorp, Inc. and Subsidiary
Consolidated Statements of Financial Condition
June 30, 2026 | December 31, | |||||||
(unaudited) | 2025* | |||||||
(Dollars in thousands) | ||||||||
ASSETS | ||||||||
Cash and due from banks: | ||||||||
Interest-earning | $ | 31,615 | $ | 30,244 | ||||
Noninterest-earning | 6,287 | 5,259 | ||||||
Time Deposit | 746 | 746 | ||||||
Investment securities available for sale, at fair value | 94,515 | 95,158 | ||||||
Federal Home Loan Bank stock, at cost | 1,065 | 498 | ||||||
Loans | 719,789 | 669,267 | ||||||
Less allowance for loan losses | (5,482 | ) | (5,062 | ) | ||||
Net loans | 714,307 | 664,205 | ||||||
Accrued interest receivable | 3,254 | 3,078 | ||||||
Foreclosed assets, net | 450 | 500 | ||||||
Property and equipment, net | 14,021 | 13,603 | ||||||
Other assets | 9,214 | 9,312 | ||||||
Total assets | $ | 875,474 | $ | 822,603 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Liabilities | ||||||||
Deposits | $ | 784,100 | $ | 749,601 | ||||
Short-term borrowings | 10,000 | - | ||||||
Long-term borrowings | 14,248 | 11,248 | ||||||
Accrued interest payable | 371 | 405 | ||||||
Accrued expenses and other liabilities | 6,067 | 5,505 | ||||||
Total liabilities | 814,786 | 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 June, 2026 and December 31, 2025, respectively | 1,359 | 1,359 | ||||||
Retained earnings, substantially restricted | 65,591 | 60,814 | ||||||
Accumulated other comprehensive Income (loss) | (6,262 | ) | (6,329 | ) | ||||
Total stockholders' equity | 60,688 | 55,844 | ||||||
Total liabilities and stockholders' equity | $ | 875,474 | $ | 822,603 | ||||
* Derived from audited financial statements
KS Bancorp, Inc. and Subsidiary
Consolidated Statement of Income
Three Months Ended | Six Months Ended | ||||||||||||
30-Jun | 30-Jun | ||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||
(In thousands, except per share data) | |||||||||||||
Interest and dividend income: | |||||||||||||
Loans | $ | 11,582 | $ | 9,604 | $ | 22,708 | $ | 18,560 | |||||
Investment securities | |||||||||||||
Taxable | 622 | 575 | 1,242 | 1,135 | |||||||||
Tax-exempt | 182 | 180 | 367 | 361 | |||||||||
Dividends | 8 | 6 | 15 | 12 | |||||||||
Interest-bearing deposits | 410 | 212 | 824 | 343 | |||||||||
Total interest and dividend income | 12,804 | 10,577 | 25,156 | 20,411 | |||||||||
Interest expense: | |||||||||||||
Deposits | 4,426 | 3,510 | 8,828 | 6,824 | |||||||||
Borrowings | 161 | 166 | 314 | 354 | |||||||||
Total interest expense | 4,587 | 3,676 | 9,142 | 7,178 | |||||||||
Net interest income | 8,217 | 6,901 | 16,014 | 13,233 | |||||||||
Provision for loan losses | 285 | 338 | 664 | 533 | |||||||||
Net interest income after | |||||||||||||
provision for loan losses | 7,932 | 6,563 | 15,350 | 12,700 | |||||||||
Noninterest income: | |||||||||||||
Service charges on deposit accounts | 394 | 365 | 761 | 690 | |||||||||
Fees from trust services | 460 | 371 | 903 | 742 | |||||||||
Other income | 239 | 324 | 426 | 540 | |||||||||
Total noninterest income | 1,093 | 1,060 | 2,090 | 1,972 | |||||||||
Noninterest expenses: | |||||||||||||
Compensation and benefits | 3,204 | 2,883 | 6,284 | 5,552 | |||||||||
Occupancy and equipment | 749 | 611 | 1,468 | 1,271 | |||||||||
Data processing & outside service fees | 357 | 291 | 692 | 555 | |||||||||
Advertising | 63 | 76 | 114 | 129 | |||||||||
Other | 995 | 806 | 1,906 | 1,537 | |||||||||
Total noninterest expenses | 5,368 | 4,667 | 10,464 | 9,044 | |||||||||
Income before income taxes | 3,657 | 2,956 | 6,976 | 5,628 | |||||||||
Income tax | 806 | 715 | 1,535 | 1,312 | |||||||||
Net income | $ | 2,851 | $ | 2,241 | $ | 5,441 | $ | 4,316 | |||||
Basic and Diluted earnings per share | $ | 2.57 | $ | 2.02 | $ | 4.91 | $ | 3.89 | |||||
SOURCE: KS Bancorp, Inc.
View the original press release on ACCESS Newswire