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SMITHFIELD, N.C., Jan. 25, 2019 (GLOBE NEWSWIRE) -- KS Bancorp, Inc. (the “Company”) (OTCBB: KSBI), parent company of KS Bank, Inc. (the “Bank”), announced unaudited results for the fourth quarter of 2018.
The Company reported net income of $906,000, or $0.82 per diluted share for the three months ended December 31, 2018, compared to net income of $6,000, for the three months ended December 31, 2017. Included in the fourth quarter 2017 is a one-time non-cash charge of $784,085 recorded as a tax expense related to the enactment of the Tax Cuts and Jobs Acts of 2017, signed into law December 2017. For the twelve months ended December 31, 2018, the Company reported a 72.0% increase in net income. Net income for the year ended December 31, 2018 totaled $3.5 million, or $3.00 per diluted share, compared to net income of $2.1 million, or $1.57 per diluted share, for the year ended December 31, 2017.
Net interest income remained constant at $3.2 million for the three months ended December 31, 2018 as compared to the comparable period in 2017. Noninterest income for the three months ended December 31, 2018 was $747,000, compared to $711,000 for the comparable period ended December 31, 2017. Noninterest expense was $2.8 million for the three months ended December 31, 2018 and 2017.
For the year ended December 31, 2018, net interest income was $12.6 million, compared to $12.2 million for the year ended December 31, 2017. Noninterest income was $3.2 million for the year ended December 31, 2018, compared to $2.8 million for the year ended December 31, 2017. Noninterest expense was $11.3 million for the year ended December 31, 2018, compared to $11.0 million for the year ended December 31, 2017.
The Company’s unaudited consolidated total assets increased $26.8 million, or 7.2%, to $400.4 million at December 31, 2018, compared to $373.6 million at December 31, 2017. Net loan balances increased by $9.6 million, or 3.4%, to $295.6 million at December 31, 2018 compared to $286.0 million at December 31, 2017. The Company’s investment securities totaled $66.0 million at December 31, 2018, compared to $65.3 million at December 31, 2017. Total deposits increased $33.8 million, or 11.4%, to $330.4 million at December 31, 2018, compared to $296.6 million at December 31, 2017. Total stockholders’ equity decreased from $26.3 million at December 31, 2017 to $22.1 million at December 31, 2018, as a result of accumulated other comprehensive losses and stock repurchases.
Nonperforming assets consisted of $1.1 million nonaccrual loans at December 31, 2018, representing less than .50% of the Company’s total assets. The Company had no foreclosed real estate owned at December 31, 2018. The allowance for loan losses at December 31, 2018 totaled $4.0 million, or 1.34% of loans.
Commenting on the fourth quarter results, Harold Keen, President and CEO of the Company and the Bank, stated, “With this report for the fourth quarter of 2018, we completed a very successful year. Actually, the most profitable year in the twenty-five years of KS Bancorp, Inc. The earnings per share of $3.00 was a goal met and a result to our focus on quality customer relationships and management of overhead expenses. Community banking is important to our market area and KS Bank is proud to be that community bank.”
In addition, the Company announced today that its Board of Directors has declared a quarterly dividend of $0.07 per share for stockholders of record as of January 30, 2019, with payment to be made on February 14, 2019.
KS Bank continues to be well-capitalized according to regulatory standards with total risk-based capital of 13.93%, tier 1 risk- based capital of 12.68%, common equity tier 1 risk- based capital of 12.68%, and a tier 1 leverage ratio of 9.52% at December 31, 2018. The minimum levels to be considered well capitalized for each of these ratios are 10.0%, 8.0%, 6.5%, and 5.0%, respectively.
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 serving the citizens of eastern North Carolina since 1924. The Bank offers a broad range of personal and business banking products and services, mortgage products and trust services. There are nine full service branches located in Kenly, Selma, Clayton, Garner, Goldsboro, Wilson, Wendell, Smithfield, and Four Oaks, North Carolina plus a mortgage servicing location in Greenville, NC. In addition, KS Trust Services has an office in Asheboro, NC and maintains a presence in Waynesville and Wilmington, NC. 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.
|KS Bancorp, Inc. and Subsidiary|
|Consolidated Statements of Financial Condition|
|December 31, 2018||December 31,|
|(Dollars in thousands)|
|Cash and due from banks:|
|Investment securities available for sale, at fair value||66,004||65,251|
|Federal Home Loan Bank stock, at cost||1,696||1,811|
|Less allowance for loan losses||(4,010||)||(4,066||)|
|Accrued interest receivable||1,212||1,127|
|Property and equipment, net||7,324||7,610|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accrued interest payable||380||324|
|Accrued expenses and other liabilities||3,232||3,066|
|Common stock, no par value, authorized 20,000,000 shares;|
|1,107,776 shares issued and outstanding at December 31, 2018 and 1,309,501 shares issued and outstanding at December 31, 2017||1,360||1,607|
|Retained earnings, substantially restricted||22,026||25,561|
|Accumulated other comprehensive loss||(1,261||)||(865||)|
|Total stockholders' equity||22,125||26,303|
|Total liabilities and stockholders' equity||$||400,415||$||373,618|
|* Derived from audited financial statements|
|KS Bancorp, Inc. and Subsidiary|
|Consolidated Statements of Income (Unaudited)|
|Three Months Ended||Twelve Months Ended|
|December 31,||December 31,|
|(In thousands, except per share data)|
|Interest and dividend income:|
|Total interest and dividend income||4,344||4,018||16,493||15,278|
|Total interest expense||1,133||803||3,886||3,031|
|Net interest income||3,211||3,215||12,607||12,247|
|Recovery loan losses||-||(40||)||-||(227||)|
|Net interest income after|
|recovery of loan losses||3,211||3,255||12,607||12,474|
|Service charges on deposit accounts||347||361||1,378||1,406|
|Fees from presold mortgages||52||31||210||209|
|Loss on sale of investments||-||-||-||(4||)|
|Total noninterest income||747||711||3,172||2,789|
|Compensation and benefits||1,704||1,728||6,917||6,714|
|Occupancy and equipment||346||336||1,287||1,245|
|Data processing & outside service fees||240||182||835||785|
|Net foreclosed real estate||-||9||(10||)||68|
|Total noninterest expenses||2,821||2,778||11,290||11,010|
|Income before income taxes||1,137||1,188||4,489||4,253|
|Basic and Diluted earnings per share||$||0.82||$||-||$||3.00||$||1.57|
|Contact: Harold T. Keen||Regina J Smith|
|President and Chief Executive Officer||Chief Financial Officer|
|(919) 938-3101||(919) 938-3101|