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CST: 25/08/2019 16:35:20   

KS Bancorp, Inc. (KSBI) Announces Fourth Quarter 2018 Financial Results and Cash Dividend

211 Days ago

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,  
    (unaudited)  2017*   
         
    (Dollars in thousands)  
  ASSETS      
         
  Cash and due from banks:      
  Interest-earning $   21,220   $   4,254    
  Noninterest-earning     2,184       2,713    
    Time Deposit     100       100    
  Investment securities available for sale, at fair value     66,004       65,251    
  Federal Home Loan Bank stock, at cost     1,696       1,811    
         
  Loans     299,640       290,035    
  Less allowance for loan losses     (4,010 )     (4,066 )  
    Net loans     295,630       285,969    
         
  Accrued interest receivable     1,212       1,127    
  Property and equipment, net     7,324       7,610    
  Other assets     5,045       4,783    
         
    Total assets $   400,415   $   373,618    
         
  LIABILITIES AND STOCKHOLDERS' EQUITY      
         
  Liabilities      
    Deposits $   330,423   $   296,574    
    Short-term borrowings     7       4,103    
    Long-term borrowings     44,248       43,248    
    Accrued interest payable     380       324    
    Accrued expenses and other liabilities     3,232       3,066    
         
    Total liabilities     378,290       347,315    
         
  Stockholder's Equity:      
    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,
      2018   2017       2018     2017  
    (In thousands, except per share data)
Interest and dividend income:          
  Loans $   3,877 $   3,669     $   14,880   $   13,825  
  Investment securities          
  Taxable     347     281         1,260       1,145  
  Tax-exempt     32     37         142       177  
  Dividends     39     15         106       85  
  Interest-bearing deposits     49     16         105       46  
    Total interest and dividend income     4,344     4,018         16,493       15,278  
             
Interest expense:          
  Deposits     686     414         2,174       1,517  
  Borrowings     447     389         1,712       1,514  
    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  
             
Noninterest income:          
  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 )
  Other income     348     319         1,584       1,178  
    Total noninterest income     747     711         3,172       2,789  
             
Noninterest expenses:          
  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  
  Advertising     49     26         125       78  
  Net foreclosed real estate     -     9         (10 )     68  
  Other     482     497         2,136       2,120  
    Total noninterest expenses     2,821     2,778         11,290       11,010  
             
    Income before income taxes     1,137     1,188         4,489       4,253  
             
Income tax      231     1,182         947       2,194  
             
    Net income  $   906 $   6     $   3,542   $   2,059  
             
  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

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