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

SMITHFIELD, N.C., Jan. 27, 2020 (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 2019.

The Company reported net income of $939,000, or $0.85 per diluted share for the three months ended December 31, 2019, compared to net income of $906,000, for the three months ended December 31, 2018. Net income for the year ended December 31, 2019 totaled $3.6 million, or $3.29 per diluted share, compared to net income of $3.5 million, or $3.00 per diluted share, for the year ended December 31, 2018. This represents a 9.67% increase in earnings per share for the twelve months ended December 31, 2019 as compared for the same time period in 2018.

Net interest income for the three months ended December 31, 2019, was $3.3 million as as compared to $3.2 million for the comparable period in 2018. Noninterest income for the three months ended December 31, 2019 was $769,000, compared to $747,000 for the comparable period ended December 31, 2018. Noninterest expense was $2.9 million for the three months ended December 31, 2019 as compared $2.8 million in the comparable period in 2018.

For the year ended December 31, 2019, net interest income was $12.9 million, compared to $12.6 million for the year ended December 31, 2018. Noninterest income was $3.1 million for the year ended December 31, 2019, compared to $3.2 million for the year ended December 31, 2018. Noninterest expense was $11.4 million for the year ended December 31, 2019, compared to $11.3 million for the year ended December 31, 2018.

The Company’s unaudited consolidated total assets increased $3.4 million, to $403.7 million at December 31, 2019, compared to $400.3 million at December 31, 2018. Net loan balances increased by $12.2 million, or 4.1%, to $307.8 million at December 31, 2019 compared to $295.6 million at December 31, 2018. The Company’s investment securities totaled $67.1 million at December 31, 2019, compared to $66.0 million at December 31, 2018.  Total deposits decreased $3.5 million, to $326.9 million at December 31, 2019, compared to $330.4 million at December 31, 2018. For the twelve months ended December 31, 2019 there was a $3.1 million increase in core deposits and a $8.7 million decrease in brokered funding. Total stockholders’ equity increased $4.7 million or 21.2% from $22.1 million at December 31, 2018 to $26.8 million at December 31, 2019, as a result of accumulated other comprehensive gains and increase in net income.
                        
Nonperforming assets consisted of $1.1 million nonaccrual loans at December 31, 2019, representing less than .50% of the Company’s total assets. The Company had no foreclosed real estate owned at December 31, 2019. The allowance for loan losses at December 31, 2019 totaled $4.1 million, or 1.30% 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 2019, we completed another very successful year. Actually, the most profitable year in the twenty-six years of KS Bancorp, Inc. The earnings per share of $3.29 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 $0.10 per share for stockholders of record as of January 24, 2020, with payment to be made on February 12, 2020. 

KS Bank continues to be well-capitalized according to regulatory standards with total risk-based capital of 14.03%, tier 1 risk- based capital of 12.78%, common equity tier 1 risk- based capital of 12.78%, and a tier 1 leverage ratio of 9.74% at December 31, 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. 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, 2019			December 31,
		(unaudited)			2018*
		(Dollars in thousands)
	ASSETS
	Cash and due from banks:
	Interest-earning	$	3,306		$	21,220
	Noninterest-earning		9,317			2,184
	Time Deposit		100			100
	Investment securities available for sale, at fair value		67,150			66,004
	Federal Home Loan Bank stock, at cost		1,763			1,696
	Presold mortgages in process of settlement		-
	Loans		311,911			299,640
	Less allowance for loan losses		(4,057	)		(4,010	)
	Net loans		307,854			295,630
	Accrued interest receivable		1,145			1,212
	Property and equipment, net		8,032			7,324
	Other assets		4,990			4,888
	Total assets	$	403,657		$	400,258
	LIABILITIES AND STOCKHOLDERS' EQUITY
	Liabilities
	Deposits	$	326,918		$	330,423
	Short-term borrowings		-			7
	Long-term borrowings		46,248			44,248
	Accrued interest payable		396			380
	Accrued expenses and other liabilities		3,268			3,075
	Total liabilities		376,830			378,133
	Stockholder's Equity:
	Common stock, no par value, authorized 20,000,000 shares;
	1,107,776 shares issued and outstanding in 2019 and 2018		1,360			1,360
	Retained earnings, substantially restricted		25,290			22,026
	Accumulated other comprehensive loss		177			(1,261	)
	Total stockholders' equity		26,827			22,125
	Total liabilities and stockholders' equity	$	403,657		$	400,258
	* 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,
			2019		2018			2019		2018
		(In thousands, except per share data)
Interest and dividend income:
	Loans	$	3,994	$	3,877		$	15,857	$	14,880
	Investment securities
	Taxable		332		347			1,385		1,260
	Tax-exempt		34		32			122		142
	Dividends		34		39			109		106
	Interest-bearing deposits		47		49			192		105
	Total interest and dividend income		4,441		4,344			17,665		16,493
Interest expense:
	Deposits		749		686			3,042		2,174
	Borrowings		411		447			1,683		1,712
	Total interest expense		1,160		1,133			4,725		3,886
	Net interest income		3,281		3,189			12,940		12,607
Provision for loan losses			-		-			25		-
	Net interest income after
	provision for loan losses		3,281		3,189			12,915		12,607
Noninterest income:
	Service charges on deposit accounts		388		347			1,495		1,378
	Fees from presold mortgages		55		52			215		210
	Other income		326		348			1,430		1,584
	Total noninterest income		769		747			3,140		3,172
Noninterest expenses:
	Compensation and benefits		1,755		1,704			7,034		6,917
	Occupancy and equipment		341		346			1,305		1,287
	Data processing & outside service fees		227		240			892		835
	Advertising		49		49			162		125
	Net foreclosed real estate		-		-			-		(10	)
	Other		490		482			2,035		2,136
	Total noninterest expenses		2,862		2,821			11,428		11,290
	Income before income taxes		1,188		1,137			4,627		4,489
Income tax			249		231			985		947
	Net income	$	939	$	906		$	3,642	$	3,542
	Basic and Diluted earnings per share	$	0.85	$	0.82		$	3.29	$	3.00

 

Contact: Harold T. Keen	Regina J Smith
President and Chief Executive Officer	Chief Financial Officer
[phone]	[phone]