KS Bancorp, Inc. (KSBI) Announces Second Quarter 2020 Financial Results and Cash Dividend

SMITHFIELD, N.C., July 24, 2020 (GLOBE NEWSWIRE) -- July 24, 2020 KS Bancorp, Inc. (the “Company”) (OTCBB: KSBI), parent company of KS Bank, Inc. (the “Bank”), announced unaudited results for the second quarter of 2020.

The Company reported net income of $971,000 or $0.88 per diluted share, an increase of 7.0% for the three months ended June 30, 2020, compared to net income of $907,000 or $0.82 per diluted share, for the three months ended June 30, 2019.

Net interest income for the three months ended  June 30, 2020, was $3.6 million as as compared to $3.2 million for the comparable period in 2019. Noninterest income for the three months ended June 30, 2020 was $681,000, compared to $860,000 for the comparable period ended June 30, 2019. Noninterest expense was $3.0 million for the three months ended June 30, 2020, as compared $2.9 million in the comparable period in 2019. The company recorded a provision for loan losses of $70,000 during the second quarter 2020.

The Company’s unaudited consolidated total assets increased $65.2 million, to $468.9 million at June 30, 2020, compared to $403.7 million at December 31, 2019. Net loan balances increased by $52.4 million, or 17.0%, to $360.3 million at June 30, 2020, compared to $307.9 million at December 31, 2019. The increase in loans was primarily due to market demand and the Bank provided $29.3 million of payroll protection plan loans (PPP) in the second quarter, 2020.  The Company’s investment securities totaled $63.4 million at June 30, 2020, compared to $67.1 million at December 31, 2019.  Total deposits increased $59.1 million, to $386.0 million at June 30, 2020, compared to $326.9 million at December 31, 2019. For the six months ended June 30, 2020, there was a $57.0 million increase in core deposits and a $3.8 million increase in brokered funding. Total stockholders’ equity increased $2.9 million or 10.94% from $26.8 million at December 31, 2019 to $29.7 million at June 30, 2020, as a result of accumulated other comprehensive gains and increase in net income.
                        
Nonperforming assets consisted of $1.1 million nonaccrual loans at June 30, 2020, representing less than 0.50% of the Company’s total assets. The Company had no foreclosed real estate owned at June 30, 2020. The allowance for loan losses at June 30, 2020 totaled $4.2 million, or 1.15% of  loans. 

Commenting on the second quarter results, Harold Keen, President and CEO of the Company and the Bank, stated, “The second quarter of 2020 will be remembered in the future as a unique three months dealing with the challenges of COVID-19.  It will also be known as a period of exceptional service by the KS Bank team as we supported businesses with $29.3 million of Payroll Protection Plan (PPP) loans, helping to ensure the continued employment of over 4,000 individuals within our market area.  Community banking is vital to local businesses during good times and during the unsettled times we have recently experienced as it relates to COVID-19.  We are pleased with the growth and returns of the first six months of 2020, however, we are cautiously optimistic for the remaining six months of 2020 with the many unknown factors related to COVID-19 crisis.  We continue to remain hopeful that as the crisis peaks that our local, state, and national economies will rebound quickly.”

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 July 24, 2020, with payment to be made on August 3, 2020. 

KS Bank continues to be well-capitalized according to regulatory standards with total risk-based capital of 14.42%, tier 1 risk- based capital of 13.16%, common equity tier 1 risk- based capital of 13.16%, and a tier 1 leverage ratio of 9.07% at June 30, 2020. 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.