SMITHFIELD, N.C., July 19, 2019 (GLOBE NEWSWIRE) -- KS Bancorp, Inc. (the “Company”) (OTCBB: KSBI), parent company of KS Bank, Inc. (the “Bank”), announced unaudited results for the second quarter of 2019.

Net income for the three months ended June 30, 2019 was $907,000, or $0.82 per diluted share  compared to net income of $887,000, or $0.71  per diluted share for the three months ended June 30, 2018. For the six months ended June 30, 2019, the Company reported $1.7 million, or $1.56 per diluted share compared to $1.6 million, or $1.31 per diluted share for the six months ended June 30, 2018.

Net interest income for the three months ended June 30, 2019,  was $3.2 million as compared to $3.1 million for the comparable period in 2018. Noninterest income for the three months ended June 30, 2019 was $860,000, compared to $882,000 for the comparable period ended June 30, 2018.  Noninterest expense remained constant at $2.9 million for the three months ended  June 30, 2019 as compared to the comparable period in 2018.

For the six months ended June 30, 2019, net interest income was $6.3 million, compared to $6.2 million for the six months ended June 30, 2018. Noninterest income remained constant at $1.6 million for the six months ended June 30, 2019 and June 30, 2018. Noninterest expense remained constant at $5.7 million for the six months ended June 30, 2019 and June 30, 2018.

The Company’s unaudited consolidated total assets decreased $3.3 million, to $396.9 million at June 30, 2019, compared to $400.2 million at December 31, 2018. Net loan balances increased by $8.3 million, to $303.9 million at June 30, 2019 compared to $295.6 million at December 31, 2018. The Company’s investment securities totaled $65.7 million at June 30, 2019, compared to $66.0 million at December 31, 2018.  Total deposits decreased $9.8 million to $320.6 million at June 30, 2019, compared to $330.4 million at December 31, 2018. The primary reduction in deposits was the result of a reduction of $6.3 million in brokered deposits. Total stockholders’ equity increased from $22.1 million at December 31, 2018 to $25.0 million at June 30, 2019, a 12.95% increase .
                        
Nonperforming assets consisted of $1.3 million nonaccrual loans at June 30, 2019, representing less than 0.50% of the Company’s total assets. The Company had no foreclosed real estate owned at June 30, 2019. The Company recorded a provision for loan loss of $25,000 for the three months ended June 30, 2019, compared to no provision for the same period in 2018. The allowance for loan losses at June 30, 2019 totaled $4.0 million, or 1.31% of  loans. 

Commenting on the second quarter results, Harold Keen, President and CEO of the Company and the Bank stated, “This quarter continues our efforts to balance growth and profits in line with building a strong community bank.  The increase in the per share earnings for the six months ending June 30, 2019 was $0.25 greater than the same period in 2018.  Building a solid foundation should prepare KS Bancorp for both the opportunities and challenges of the future.  Community banks with a long term focus are important for shareholders, customers, and all related stakeholders.”

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  July 19, 2019, with payment to be made on July 31, 2019. 

KS Bank continues to be well-capitalized according to regulatory standards with total risk-based capital of 14.15%, tier 1 risk- based capital of 12.89%, common equity tier 1 risk- based capital of 12.89%, and a tier 1 leverage ratio of  9.89% at June 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. 

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

KS Bancorp, Inc. and Subsidiary
Consolidated Statements of Financial Condition
         
         
  June 30, 2019  December 31,
  (unaudited)  2018*
         
  (Dollars in thousands)
 ASSETS       
         
 Cash and due from banks:       
 Interest-earning$9,040  $21,220 
 Noninterest-earning 2,402   2,184 
 Time Deposit 100   100 
 Investment securities available for sale, at fair value 65,711   66,004 
 Federal Home Loan Bank stock, at cost 1,763   1,696 
         
 Loans 307,912   299,640 
 Less allowance for loan losses (4,041)  (4,010)
 Net loans 303,871   295,630 
         
 Accrued interest receivable 1,260   1,212 
 Property and equipment, net 7,816   7,324 
 Other assets 4,967   4,888 
         
 Total assets$396,930  $400,258 
         
 LIABILITIES AND STOCKHOLDERS' EQUITY       
         
 Liabilities       
 Deposits$320,591  $330,423 
 Short-term borrowings -   7 
 Long-term borrowings 47,248   44,248 
 Accrued interest payable 423   380 
 Accrued expenses and other liabilities 3,678   3,075 
         
 Total liabilities 371,940   378,133 
         
 Stockholder's Equity:       
 Common stock, no par value, authorized 20,000,000 shares;       
 1,107,776 shares issued and outstanding at June 30, 2019 and 1,107,776 shares issued and outstanding at December 31, 2018 1,360   1,360 
 Retained earnings, substantially restricted 23,575   22,026 
 Accumulated other comprehensive loss 55   (1,261)
         
 Total stockholders' equity 24,990   22,125 
         
 Total liabilities and stockholders' equity$396,930  $400,258 
         
 *  Derived from audited financial statements       
         

 

KS Bancorp, Inc and Subsidiary
Consolidated Statements of Income (Unaudited)
       
       
  Three Months Ended Six Months Ended
  June 30, June 30,
  2019
 2018
 2019
 2018
  (In thousands, except per share data)
Interest and dividend income:               
 Loans$3,978  $3,662  $7,839  $7,193 
 Investment securities               
 Taxable 353   296   719   601 
 Tax-exempt 32   38   54   74 
 Dividends 24   22   51   43 
 Interest-bearing deposits 36   18   109   35 
 Total interest and dividend income 4,423   4,036   8,772   7,946 
                 
Interest expense:               
 Deposits 763   474   1,527   921 
 Borrowings 424   422   873   818 
 Total interest expense 1,187   896   2,400   1,739 
                 
 Net interest income 3,236   3,140   6,372   6,207 
                 
Provision for loan losses 25   -   25   - 
                 
 Net interest income after               
 provision for loan losses 3,211   3,140   6,347   6,207 
                 
Noninterest income:               
 Service charges on deposit accounts 370   347   705   689 
 Fees from presold mortgages 41   63   93   113 
 Other income 449   472   763   758 
 Total noninterest income 860   882   1,561   1,560 
                 
Noninterest expenses:               
 Compensation and benefits 1,786   1,773   3,490   3,489 
 Occupancy and equipment 317   298   626   617 
 Data processing & outside service fees 225   205   448   411 
 Advertising 35   19   74   44 
 Net foreclosed real estate -   (1)  -   (1)
 Other 549   599   1,072   1,110 
 Total noninterest expenses 2,912   2,893   5,710   5,670 
                 
 Income before income taxes 1,159   1,129   2,198   2,097 
                 
Income tax 252   242   471   446 
                 
 Net income$907  $887  $1,727  $1,651 
                 
 Basic and Diluted earnings per share$0.82  $0.71  $1.56  $1.31