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KS Bancorp, Inc. (KSBI) Announces Second Quarter 2024 Financial Results and Cash Dividend

Monday, 22 July 2024 12:05 PM

Topic:
Earnings

SMITHFIELD, NC / ACCESSWIRE / July 22, 2024 / KS Bancorp, Inc. (the "Company") (OTC PINK:KSBI), parent company of KS Bank, Inc. (the "Bank"), announced unaudited results for the second quarter of 2024.

The Company reported net income of $1.7 million or $1.50 per diluted share for the three months ended June 30, 2024, compared to net income of $1.6 million or $1.41 per diluted share for the three months ended June 30, 2023.

Net interest income before the provision for credit losses for the three months ended June 30, 2024 was $5.5 million, compared to $5.1 million at June 30, 2023. Non-interest income for the three months ended June 30, 2024, was $863,000, compared to $829,000 for the comparable period ended June 30, 2023. Non-interest expense was $4.1 million for the three months ended June 30, 2024, compared to $3.8 million in the comparable period in 2023.

For the six months ending June 30, 2024, net interest income before the provision for credit losses was $10.6 million, compared to $10.3 million for the six months ending June 30, 2023, which was a 2.9% increase. Non-interest income was $1.7 million for the six months ending June 30, 2024, compared to $1.6 million for the same period ended June 30, 2023. For the six months ended June 30, 2024, non-interest expenses were $8.1 million, compared to $7.6 million for the same period ending June 30, 2023.

The Company's unaudited consolidated total assets increased $55.2 million to $668.8 million on June 30, 2024, compared to $613.6 million on December 31, 2023. Net loan balances increased by $31.4 million to $504.3 million on June 30, 2024, compared to $472.9 million on December 31, 2023. The Company's investment securities totaled $97.9 million on June 30, 2024, compared to $98.0 million on December 31, 2023. Total deposits increased $64.0 million to $609.0 million on June 30, 2024, compared to $545.0 million on December 31, 2023. The increase in deposits included a $57.6 million increase or 11.5% in core deposits. For the six months ended June 30, 2024, short-term borrowings decreased $12.0 million. Total stockholders' equity increased $3.0 million to $43.5 million on June 30, 2024, from $40.5 million on December 31, 2023.

On June 30, 2024, nonperforming assets consisted of nonaccrual loans of $797,000, representing less than 0.20% of the Company's total assets. No foreclosed real estate was owned on June 30, 2024. The allowance for credit losses on June 30, 2024, totaled $4.1 million, or 0.80% of total loans.

Commenting on the second quarter results, Earl W. Worley, Jr., President and CEO of the Company, stated, "During the first six months of 2024, KS Bank continues to experience solid growth in both deposits and loans. Net loan balances have increased 6.64%, and deposit balances have increased 11.75%, respectively, year-to-date. On June 30, 2024, the bank's loan balances were $504 million, exceeding the one-half billion-dollar threshold for the first time in the bank's history. We are pleased with our year-to-date results as we are on track with our projections for the year. As the Federal Reserve works toward their ‘soft landing,' we will continue to make adjustments as warranted."

In addition, Worley stated, "The second quarter for KS Bank was exciting not just because of our history-making loan balances but also due to the opening of our newest full-service branch location in Dunn, North Carolina. On June 20, 2024, KS Bank held a ribbon cutting in Dunn with more than 100 community members, city officials, and bank employees in attendance. The new branch marks the Bank's tenth full-service location and its first branch location in Harnett County, North Carolina. We are extremely pleased with the community's reception and the new customers the bank is acquiring."

In addition, the Company announced today that its Board of Directors has declared a quarterly dividend of $0.26 per share for stockholders of record as of July 29, 2024, with payment to be made on August 8, 2024.

KS Bank continues to be well capitalized according to regulatory standards with a Community Bank Leverage Ratio of 9.49%, compared to 9.67% on December 31, 2023.

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 that has served the citizens of eastern North Carolina since 1924. The Bank offers a broad range of personal and business banking products and services, as well as mortgage and trust services. Ten full-service branches are located in Kenly, Selma, Clayton, Garner, Goldsboro, Wilson, Wendell, Smithfield, Four Oaks, and Dunn, North Carolina. 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: Earl W. Worley, Jr.

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, 2024

December 31,

(unaudited)


2023*

(Dollars in thousands)

ASSETS

Cash and due from banks:

Interest-earning

$

37,348

$

15,962

Noninterest-earning

4,462

2,983

Time Deposit

513

500

Investment securities available for sale, at fair value

97,915

98,047

Federal Home Loan Bank stock, at cost

469

978

Loans

508,382

476,679

Less allowance for loan losses

(4,048

)

(3,766

)

Net loans

504,334

472,913

Accrued interest receivable

2,601

2,389

Property and equipment, net

13,089

11,050

Other assets

8,073

8,774

Total assets

$

668,804

$

613,596

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Deposits

$

609,072

$

545,038

Short-term borrowings

$

-

$

12,000

Long-term borrowings

11,248

11,248

Accrued interest payable

325

432

Accrued expenses and other liabilities

4,638

4,401

Total liabilities

625,283

573,119

Stockholder's Equity:

Preferred stock, no par value, 500,000 shares authorized; none issued and outstanding

Common stock, no par value, 3,500,000 shares authorized; 1,107,776 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

1,359

1,359

Retained earnings, substantially restricted

50,137

47,659

Accumulated other comprehensive Income (loss)

(7,975

)

(8,541

)

Total stockholders' equity

43,521

40,477

Total liabilities and stockholders' equity

$

668,804

$

613,596

* Derived from audited financial statements

KS Bancorp, Inc and Subsidiary
Consolidated Statements of Income (Unaudited)

Three Months Ended

Six Months Ended

30-Jun

June 30,

2024

2023

2024

2023

(In thousands, except per share data)

Interest and dividend income:

Loans

$

7,784

$

6,174

$

15,237

$

12,038

Investment securities

Taxable

513

479

1,013

961

Tax-exempt

202

204

404

409

Dividends

6

3

12

10

Interest-bearing deposits

277

326

397

543

Total interest and dividend income

8,782

7,186

$

17,063

13,961

Interest expense:

Deposits

3,132

1,944

5,938

3,318

Borrowings

192

175

565

378

Total interest expense

3,324

2,119

6,503

3,696

Net interest income

5,458

5,067

10,560

10,265

Provision for loan losses

114

110

283

110

Net interest income after

provision for loan losses

5,344

4,957

10,277

10,155

Noninterest income:

Service charges on deposit accounts

320

345

634

655

Fees from trust services

334

302

651

582

Other income

209

182

407

330

Total noninterest income

863

829

1,692

1,567

Noninterest expenses:

Compensation and benefits

2,513

2,358

5,015

4,722

Occupancy and equipment

596

504

1,153

1,038

Data processing & outside service fees

244

208

479

413

Advertising

64

67

110

115

Other

712

671

1,354

1,277

Total noninterest expenses

4,129

3,808

8,111

7,565

Income before income taxes

2,078

1,978

3,858

4,157

Income tax

421

419

815

879

Net income

$

1,657

$

1,559

$

3,043

$

3,278

Basic and Diluted earnings per share

$

1.50

$

1.41

$

2.75

$

2.96

SOURCE: KS Bancorp, Inc.

Topic:
Earnings
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