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KS Bancorp, Inc. (KSBI) Announces Third Quarter 2019 Financial Results and Cash Dividend

641 Days ago

SMITHFIELD, N.C., Oct. 25, 2019 (GLOBE NEWSWIRE) -- KS Bancorp, Inc. (the “Company”) (OTCBB: KSBI), parent company of KS Bank, Inc. (the “Bank”), announced unaudited results for the third quarter of 2019.

Net income for the three months ended September 30, 2019 was $976,000, or $0.88 per diluted share  compared to net income of $985,000, or $0.89  per diluted share for the three months ended September 30, 2018. For the nine months ended September 30, 2019, the Company reported net income of $2.7 million, or $2.44 per diluted share compared to $2.6 million, or $2.18 per diluted share for the nine months ended September 30, 2018.

Net interest income for the three months ended September 30, 2019,  was $3.3 million as compared to $3.2 million for the comparable period in 2018. Noninterest income for the three months ended September 30, 2019 was $810,000, compared to $865,000 for the comparable period ended September 30, 2018.  Noninterest expense was $2.9 million for the three months ended    September 30, 2019 as compared $2.8 million in the comparable period in 2019.

For the nine months ended September 30, 2019, net interest income was $9.6 million, compared to $9.4 million for the nine months ended September 30, 2018. Noninterest income remained constant at $2.4 million for the nine months ended September 30, 2019 and September 30, 2018. Noninterest expense remained constant at $8.5 million for the nine months ended September 30, 2019 and September 30, 2018.

The Company’s unaudited consolidated total assets increased $4.0 million, to $404.2 million at September 30, 2019, compared to $400.2 million at December 31, 2018. Net loan balances increased by $2.7 million, to $298.3 million at September 30, 2019 compared to $295.6 million at December 31, 2018. The Company’s investment securities totaled $65.3 million at September 30, 2019, compared to $66.0 million at December 31, 2018.  Total deposits decreased $2.7 million to $327.7 million at September 30, 2019, compared to $330.4 million at December 31, 2018. Total stockholders’ equity increased from $22.1 million at December 31, 2018 to $26.0 million at September 30, 2019, a 17.44% increase.
                        
Nonperforming assets consisted of $1.2 million nonaccrual loans at September 30, 2019, representing less than 0.50% of the Company’s total assets. The Company had $27,000 in foreclosed real estate owned at September 30, 2019. The allowance for loan losses at September 30, 2019 totaled $4.1 million, or 1.32% of  loans. 

Commenting on the third quarter results, Harold Keen, President and CEO of the Company and the Bank stated, “The Company had another solid quarter. In a challenging interest rate environment the KS Bancorp/KS Bank team continues to build customer relationships that are appropriate both for today and the future.”

In addition, the Company announced today that its Board of Directors has declared a quarterly  dividend of $0.09 per share for stockholders of record as of  November 4, 2019, with payment to be made on November 14, 2019. 

KS Bank continues to be well-capitalized according to regulatory standards with total risk-based capital of 14.24%, tier 1 risk- based capital of 12.99%, common equity tier 1 risk- based capital of 12.99%, and a tier 1 leverage ratio of  9.76% at September 30, 2019. 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
                 
    September 30, 2019   December 31,
    (unaudited)   2018*
                 
    (Dollars in thousands)
  ASSETS              
                 
  Cash and due from banks:              
  Interest-earning $ 21,604     $ 21,220  
  Noninterest-earning   2,896       2,184  
  Time deposit   100       100  
  Investment securities available for sale, at fair value   65,296       66,004  
  Federal Home Loan Bank stock, at cost   1,763       1,696  
  Presold mortgages in process of settlement   219       -  
                 
  Loans   302,370       299,640  
  Less allowance for loan losses   (4,058 )     (4,010 )
  Net loans   298,312       295,630  
                 
  Accrued interest receivable   1,229       1,212  
  Property and equipment, net   7,909       7,324  
  Other assets   4,919       4,888  
                 
  Total assets $ 404,247     $ 400,258  
                 
  LIABILITIES AND STOCKHOLDERS' EQUITY              
                 
  Liabilities              
  Deposits $ 327,704     $ 330,423  
  Short-term borrowings   -       7  
  Long-term borrowings   46,248       44,248  
  Accrued interest payable   400       380  
  Accrued expenses and other liabilities   3,911       3,075  
                 
  Total liabilities   378,263       378,133  
                 
  Stockholder's Equity:              
  Common stock, no par value, authorized 20,000,000 shares;              
  1,107,776 shares issued and outstanding at September 30, 2019 and December 31, 2018   1,360       1,360  
  Retained earnings, substantially restricted   24,451       22,026  
  Accumulated other comprehensive income (loss)   173       (1,261 )
                 
  Total stockholders' equity   25,984       22,125  
                 
  Total liabilities and stockholders' equity $ 404,247     $ 400,258  
                 
  *  Derived from audited financial statements              


Consolidated Statements of Income (Unaudited)
             
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
      2019     2018       2019     2018  
    (In thousands, except per share data)
Interest and dividend income:                          
  Loans $ 4,024   $ 3,804     $ 11,863   $ 11,003  
  Investment securities                          
  Taxable   334     312       1,053     913  
  Tax-exempt   34     36       88     110  
  Dividends   24     24       75     67  
  Interest-bearing deposits   36     27       145     56  
  Total interest and dividend income   4,452     4,203       13,224     12,149  
                             
Interest expense:                          
  Deposits   766     567       2,293     1,488  
  Borrowings   399     447       1,272     1,265  
  Total interest expense   1,165     1,014       3,565     2,753  
                             
  Net interest income   3,287     3,189       9,659     9,396  
                             
Provision for loan losses   -     -       25     -  
                             
  Net interest income after                          
  provision for loan losses   3,287     3,189       9,634     9,396  
                             
Noninterest income:                          
  Service charges on deposit accounts   402     342       1,107     1,031  
  Fees from presold mortgages   67     45       160     158  
  Other income   341     478       1,104     1,236  
  Total noninterest income   810     865       2,371     2,425  
                             
Noninterest expenses:                          
  Compensation and benefits   1,789     1,724       5,279     5,213  
  Occupancy and equipment   338     324       964     941  
  Data processing & outside service fees   217     184       665     595  
  Advertising   39     32       113     76  
  Net foreclosed real estate   -     (9 )     -     (10 )
  Other   473     544       1,545     1,654  
  Total noninterest expenses   2,856     2,799       8,566     8,469  
                             
  Income before income taxes   1,241     1,255       3,439     3,352  
                             
Income tax   265     270       736     716  
                             
  Net income $ 976   $ 985     $ 2,703   $ 2,636  
                             
  Basic and Diluted earnings per share $ 0.88   $ 0.89     $ 2.44   $ 2.18  
                             

Contact: Harold T. Keen
President and Chief Executive Officer
(919) 938-3101

Regina J Smith
Chief Financial Officer
(919) 938-3101

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