SMITHFIELD, NC / ACCESSWIRE / October 25, 2024 / KS Bancorp, Inc. (the "Company") (OTC PINK:KSBI), parent company of KS Bank, Inc. (the "Bank"), announced unaudited results for the third quarter of 2024 and cash dividend.
The Company reported net income of $1.5 million or $1.32 per diluted share for the three months ended September 30, 2024, compared to net income of $1.4 million or $1.29 per diluted share for the three months ended September 30, 2023.
Net interest income before the provision for credit losses for the three months ended September 30, 2024 was $5.5 million, compared to $5.0 million at September 30, 2023. Non-interest income for the three months ended September 30, 2024, was $881,000, compared to $812,000 for the comparable period ended September 30, 2023. Non-interest expense was $4.2 million for the three months ended September 30, 2024, compared to $3.8 million in the comparable period in 2023.
For the nine months ending September 30, 2024, there was a 5.1% increase in the net interest income before the provision for credit losses. On September 30, 2024, it was $16.0 million, compared to $15.3 million for the nine months ending September 30, 2023. Non-interest income was $2.6 million for the nine months ending September 30, 2024, compared to $2.4 million for the same period ended September 30, 2023. The increase is primarily attributable to the continued growth of the Wealth and Trust Services. For the nine months ended September 30, 2024, non-interest expenses were $12.3 million, compared to $11.4 million for the same period ending September 30, 2023.
The Company's unaudited consolidated total assets increased 11.9% or $72.9 million to $686.5 million on September 30, 2024, compared to $613.6 million on December 31, 2023. Net loan balances increased 9.5% or $45.0 million to $517.9 million on September 30, 2024, compared to $472.9 million on December 31, 2023. The Company's investment securities totaled $101.2 million on September 30, 2024, compared to $98.0 million on December 31, 2023. Total deposits increased 14.3% or $78.2 million to $623.2 million on September 30, 2024, compared to $545.0 million on December 31, 2023. The increase in deposits included a $71.7 million increase or 14.3% in core deposits. For the nine months ended September 30, 2024, short-term borrowings decreased $12.0 million. Total stockholders' equity increased $6.1 million to $46.6 million on September 30, 2024, from $40.5 million on December 31, 2023. The increase in stockholder's equity is primarily attributable to the change in accumulated other comprehensive income of $2.4 million and the increase in retained earnings of $3.7 million.
On September 30, 2024, nonperforming assets consisted of nonaccrual loans of $603,000, representing less than 0.10% of the Company's total assets. No foreclosed real estate was owned on September 30, 2024. The allowance for credit losses on September 30, 2024, totaled $4.2 million, or 0.81% of total loans.
Commenting on the third quarter results, Earl W. Worley, Jr., President and CEO of the Company, stated, "We're proud of the strong growth KS Bank has achieved during the third quarter and throughout the first nine months of 2024. Year-to-date, our total assets have grown by 11.9% to $686.5 million, and loan balances have increased by 9.5%, or $45 million, since the start of the year. Additionally, deposits have risen by 14.3%, with core deposits contributing significantly to this growth. This consistent performance across the year reflects the trust our customers place in us, and positions us well to continue supporting the communities we serve through these changing economic conditions."
Worley continued, "As we approach the end of 2024, our focus is on carefully managing the impact of potential interest rate changes. While we are encouraged by our strong year-to-date performance, we recognize that the Federal Reserve's next moves will influence our margins and lending environment. Our goal is to remain agile, ensuring we continue to deliver value to our shareholders while navigating the challenges ahead."
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 November 4, with payment to be made on November 14, 2024.
KS Bank continues to be well capitalized according to regulatory standards, with a Community Bank Leverage Ratio of 9.28% on September 30, 2024, 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.
KS Bancorp, Inc. and Subsidiary
Consolidated Statements of Financial Condition
| September 30, 2024 |
|
| December 31, |
| |||
|
|
|
|
|
| |||
ASSETS |
|
|
|
|
|
| ||
|
|
|
|
|
| |||
Cash and due from banks: |
|
|
|
|
|
| ||
Interest-earning |
| $ | 37,396 |
|
| $ | 15,962 |
|
Noninterest-earning |
|
| 5,547 |
|
|
| 2,983 |
|
Time Deposit |
|
| 513 |
|
|
| 500 |
|
Investment securities available for sale, at fair value |
|
| 101,154 |
|
|
| 98,047 |
|
Federal Home Loan Bank stock, at cost |
|
| 469 |
|
|
| 978 |
|
Loans |
|
| 522,140 |
|
|
| 476,679 |
|
Less allowance for loan losses |
|
| (4,212 | ) |
|
| (3,766 | ) |
Net loans |
|
| 517,928 |
|
|
| 472,913 |
|
|
|
|
|
|
|
|
| |
Accrued interest receivable |
|
| 2,566 |
|
|
| 2,389 |
|
Property and equipment, net |
|
| 13,118 |
|
|
| 11,050 |
|
Other assets |
|
| 7,812 |
|
|
| 8,774 |
|
|
|
|
|
|
|
|
| |
Total assets |
| $ | 686,503 |
|
| $ | 613,596 |
|
|
|
|
|
|
|
|
| |
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Liabilities |
|
|
|
|
|
|
|
|
Deposits |
| $ | 623,226 |
|
| $ | 545,038 |
|
Short-term borrowings |
| $ | - |
|
| $ | 12,000 |
|
Long-term borrowings |
|
| 11,248 |
|
|
| 11,248 |
|
Accrued interest payable |
|
| 317 |
|
|
| 432 |
|
Accrued expenses and other liabilities |
|
| 5,132 |
|
|
| 4,401 |
|
|
|
|
|
|
|
|
| |
Total liabilities |
|
| 639,923 |
|
|
| 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 September 30, 2024 and December 31, 2023, respectively |
|
| 1,359 |
|
|
| 1,359 |
|
Retained earnings, substantially restricted |
|
| 51,310 |
|
|
| 47,659 |
|
Accumulated other comprehensive Income (loss) |
|
| (6,089 | ) |
|
| (8,541 | ) |
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
| 46,580 |
|
|
| 40,477 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
| $ | 686,503 |
|
| $ | 613,596 |
|
|
|
|
|
|
|
|
|
|
* Derived from audited financial statements |
|
|
|
|
|
|
| |
KS Bancorp, Inc. and Subsidiary
Consolidated Statements of Income (Unaudited)
| Three Months Ended |
|
| Nine Months Ended |
| |||||||||||
| 30-Sep |
|
| 30-Sep |
| |||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
|
| (In thousands, except per share data) |
|
|
|
|
|
|
| |||||||
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Loans |
| $ | 8,283 |
|
| $ | 6,615 |
|
| $ | 23,520 |
|
| $ | 18,653 |
|
Investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
| 561 |
|
|
| 484 |
|
|
| 1,574 |
|
|
| 1445 |
|
Tax-exempt |
|
| 185 |
|
|
| 203 |
|
|
| 589 |
|
|
| 612 |
|
Dividends |
|
| 6 |
|
|
| 5 |
|
|
| 18 |
|
|
| 15 |
|
Interest-bearing deposits |
|
| 325 |
|
|
| 271 |
|
|
| 722 |
|
|
| 814 |
|
Total interest and dividend income |
|
| 9,360 |
|
|
| 7,578 |
|
| $ | 26,423 |
|
|
| 21,539 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
| 3,690 |
|
|
| 2,395 |
|
|
| 9,628 |
|
|
| 5,713 |
|
Borrowings |
|
| 185 |
|
|
| 187 |
|
|
| 750 |
|
|
| 565 |
|
Total interest expense |
|
| 3,875 |
|
|
| 2,582 |
|
|
| 10,378 |
|
|
| 6,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
| 5,485 |
|
|
| 4,996 |
|
|
| 16,045 |
|
|
| 15,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
|
| 171 |
|
|
| 180 |
|
|
| 454 |
|
|
| 290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for loan losses |
|
| 5,314 |
|
|
| 4,816 |
|
|
| 15,591 |
|
|
| 14,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
| 340 |
|
|
| 330 |
|
|
| 974 |
|
|
| 985 |
|
Fees from trust services |
|
| 372 |
|
|
| 312 |
|
|
| 1,023 |
|
|
| 894 |
|
Other income |
|
| 169 |
|
|
| 170 |
|
|
| 576 |
|
|
| 500 |
|
Total noninterest income |
|
| 881 |
|
|
| 812 |
|
|
| 2,573 |
|
|
| 2,379 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
| 2,532 |
|
|
| 2,374 |
|
|
| 7,547 |
|
|
| 7,096 |
|
Occupancy and equipment |
|
| 631 |
|
|
| 553 |
|
|
| 1,784 |
|
|
| 1,591 |
|
Data processing & outside service fees |
|
| 253 |
|
|
| 220 |
|
|
| 732 |
|
|
| 633 |
|
Advertising |
|
| 62 |
|
|
| 63 |
|
|
| 172 |
|
|
| 178 |
|
Other |
|
| 706 |
|
|
| 622 |
|
|
| 2,060 |
|
|
| 1,899 |
|
Total noninterest expenses |
|
| 4,184 |
|
|
| 3,832 |
|
|
| 12,295 |
|
|
| 11,397 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
| 2,011 |
|
|
| 1,796 |
|
|
| 5,869 |
|
|
| 5,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax |
|
| 550 |
|
|
| 365 |
|
|
| 1,365 |
|
|
| 1,244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
| $ | 1,461 |
|
| $ | 1,431 |
|
| $ | 4,504 |
|
| $ | 4,709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted earnings per share |
| $ | 1.32 |
|
| $ | 1.29 |
|
| $ | 4.07 |
|
| $ | 4.25 |
|
Contact:
Earl W. Worley, Jr.
President and Chief Executive Officer
(919) 938-3101
or
Regina J Smith
Chief Financial Officer
(919) 938-3101
SOURCE: KS Bancorp, Inc.