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

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SMITHFIELD, N.C., Oct. 25, 2019 (GLOBE NEWSWIRE) -- KS Bancorp, Inc. (the “Company”) (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