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

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