SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                  FORM 10-KSB/A 
                                 AMENDMENT NO. 1

[X]  Annual report  pursuant to Section 13 or 15 (d) of the Securities  Exchange
     Act of 1934
  

     For the fiscal year ended: December 31, 1996

                        Commission file number: 0-21500

                                KSB Bancorp, Inc.
                 (Name of small business issuer in its charter)

        Delaware                                             04-3189069
--------------------------------------------------------------------------------
(State or other jurisdiction of incorporation            (I.R.S. Employer 
or organization)                                         Identification No.)

     Main Street
  Kingfield, Maine                                             04947
--------------------------------------------------------------------------------
(Address of principal executive offices)                    (Zip Code)

                        Telephone Number: (207) 265-2181

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Sections 13 or 15(d) of the  Securities  Exchange Act of
1934  during the  preceding  12  months-(or  for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.   Yes [  ]   No  [  ]


      Securities Registered Pursuant to Section 12(g) of the Exchange Act:
                                  Common Stock 

         Indicate by check mark if disclosure of delinquent  filers  pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be contained to
the  Registrant's  knowledge,  in  definitive  proxy or  information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ X ]

         The aggregate  market value of the voting stock held by  non-affiliates
of the  registrant,  computed by reference to the last  reported  sales price of
such  stock  on  the  NASDAQ   National  Market  system  on  March 6,  1997  was
approximately $11,555,740.

         The number of shares outstanding of the registrant's  Common Stock, the
registrant's only class of outstanding capital stock, as of March 18, 1997, was 
412,705.

         Issuer's revenues for the year ended December 31, 1996:  $11,843,451.
<PAGE>
                       Documents Incorporated by Reference 

         The  following  documents,   in  whole  or  in  part  are  specifically
incorporated  by  reference  in the  indicated  Part of this Annual  Report Form
10-KSB:

I.   Portions of the KSB Bancorp Inc.  1996 Annual  Report are  incorporated  by
     reference into certain items of Part I and Part II.

II.  Portions  of the KSB  Bancorp  Inc.  Proxy  Statement  for the 1996  Annual
     Meeting of Shareholders are incorporated by reference into certain items of
     Part III.

<PAGE>
Form 10-KSB for KSB Bancorp, Inc. for fiscal year ended December 31, 1996, filed
originally on March 28, 1997, is amended as follows:

SIGNATURES

The Signature page,  pursuant to the requirements of Section 13 or 15 (d) of the
Securities Exchange Act of 1934, is hereby included in its entirety.


EXHIBIT 13

Exhibit 13 is amended in its entirety to include the addition of pages 1 through
6 and pages 13 through 28 of the 1996 Annual Report to Shareholders. These pages
include the Letter to Shareholders,  Management's Discussion and Analysis, Notes
to Consolidated Financial Statements, and Corporate Information, as was included
in the 1996 Annual  Report to  Shareholders  mailed on or about April 4, 1997 to
shareholders.
<PAGE>
                                  SIGNATURES

Pursuant to the requirements of Section 13 or 15 (d) of the Securities  Exchange
Act of 1934,  Registrant  has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.


KSB BANCORP


By:      /s/John C. Witherspoon                        Dated:    March 28, 1997
         ----------------------
         John C. Witherspoon
         President/CEO


Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed by the following  persons on behalf of  Registrant  and in their
capacities as directors  and/or officers on the date indicated.



Dated:        March 28, 1997                By:   /s/Winfield F. Robinson
                                                  -----------------------
                                                  Winfield F. Robinson
                                                  Chairman
                                                  


Dated:        March 28, 1997                By:   /s/William P. Dubord
                                                  --------------------
                                                  William P. Dubord
                                                   


Dated:        March 28, 1997                By:   /s/G. Norton Luce
                                                  ------------------
                                                  G. Norton Luce


Dated:        March 28, 1997                By:   /s/Roger G. Spear
                                                  -----------------
                                                  Roger G. Spear


Dated:        March 28, 1997                By:   /s/ Theodore C. Johanson
                                                  ------------------------
                                                  Theodore C. Johanson