SMITHFIELD, NC / ACCESSWIRE / April 23, 2024 / KS Bancorp, Inc. (the "Company") (OTC PINK:KSBI), parent company of KS Bank, Inc. (the "Bank"), announced unaudited results for the first quarter of 2024.
The Company reported net income of $1.4 million or $1.25 per diluted share, for the three months ended March 31, 2024, compared to net income of $1.7 million or $1.55 per diluted share, for the three months ended March 31, 2023.
Net interest income before the provision for credit losses for the three months ended was $5.1 million, compared to $5.2 million at March 31, 2023. Noninterest income for the three months ended March 31, 2024 was $829,000, compared to $738,000 for the comparable period ended March 31, 2023. Noninterest expense was $4.0 million for the three months ended March 31, 2024, compared to $3.8 million in the comparable period in 2023.
The Company's unaudited consolidated total assets increased $44.7 million, to $658.3 million at March 31, 2024, compared to $613.6 million at March 31, 2023. Net loan balances increased by $14.5 million to $487.4 million at March 31, 2024, compared to $472.9 million at December 31, 2023. The Company's investment securities totaled $98.9 million at March 31, 2024, compared to $98.0 million at December 31, 2023. Total deposits increased $54.6 million to $599.6 million at March 31, 2024, compared to $545.0 million at December 31, 2023. The increase in deposits included a $50.8 million increase or 10.1% in core deposits. For the three months ended March 31, 2024, short-term borrowings decreased $12.0 million. Total stockholders' equity increased $1.6 million to $42.1 million at March 31, 2024, from $40.5 million at December 31, 2023.
At March 31, 2024, nonperforming assets consisted of nonaccrual loans of $875,000, which represented less than 0.20% of the Company's total assets. There were no foreclosed real estate owned at March 31, 2024. The allowance for credit losses at March 31, 2024 totaled $3.9 million, or 0.81% of total loans.
Commenting on the first quarter results, Earl W. Worley, Jr., President and CEO of the Company, stated, "At March 31, 2024, the Bank is on target with our projections for 2024. The first quarter results show a quarter of solid earnings and balance sheet growth due to the good work of all our team members across our foot print. While we experienced an increase of nearly $45.0 million in assets during the quarter, this growth was primarily attributable to transitory deposits from several of the Bank's larger customers. If you discount the large deposits, the Bank still maintained solid asset growth. In addition, while interest rates do not appear to be moderating in the near term, we believe based on our projections that we are poised to continue to achieve positive results for our stakeholders."
Worley continued by stating, "KS Bank is proud that throughout the year of 2024 we are celebrating our 100th anniversary in business, a milestone few other businesses have reached. Our longevity is a testament to the trust and loyalty of our Customers, Board of Directors and our Shareholders. We're excited for the future of KS Bank and are committed to continuing to offer superior service and support for the next 100 years."
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 April 29, 2024 with payment to be made on May 9, 2024. This is an increase of approximately 30.0% from the dividend paid in the first quarter of 2023 and a 4.0% increase from the dividend paid for the fourth quarter of 2023.
KS Bank continues to be well capitalized according to regulatory standards with a Community Bank Leverage Ratio of 9.63%, compared to 9.67% at 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 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. There is a loan production office in Dunn, NC which opened in April, 2022. Additionally, the Bank has received regulatory approval to build a full service branch in Dunn, NC to be completed by the end second quarter of 2024. 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 March 31, 2024 December 31, (unaudited) 2023* (Dollars in thousands) ASSETS Cash and due from banks: Interest-earning $ 45,129 $ 15,962 Noninterest-earning 3,331 2,983 Time Deposit 503 500 Investment securities available for sale, at fair value 98,869 98,047 Federal Home Loan Bank stock, at cost 469 978 Loans 491,295 476,679 Less allowance for loan losses (3,935 ) (3,766 ) Net loans 487,360 472,913 Accrued interest receivable 2,627 2,389 Foreclosed assets, net - - Property and equipment, net 11,903 11,050 Other assets 8,105 8,774 Total assets $ 658,296 $ 613,596 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Deposits $ 599,654 $ 545,038 Short-term borrowings $ - $ 12,000 Long-term borrowings 11,248 11,248 Accrued interest payable 435 432 Accrued expenses and other liabilities 4,858 4,401 Total liabilities 616,195 573,119 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 March 31, 2024 and December 31, 2023, respectively 1,359 1,359 Retained earnings, substantially restricted 48,768 47,659 Accumulated other comprehensive Income (loss) (8,026 ) (8,541 ) Total stockholders' equity 42,101 40,477 Total liabilities and stockholders' equity $ 658,296 $ 613,596 * Derived from audited financial statements KS Bancorp, Inc and Subsidiary Consolidated Statements of Income (Unaudited) Three Months Ended 31-Mar 2024 2023 (In thousands, except per share data) Interest and dividend income: Loans $ 7,453 $ 5,864 Investment securities Taxable 500 482 Tax-exempt 202 205 Dividends 6 7 Interest-bearing deposits 120 217 Total interest and dividend income 8,281 6,775 Interest expense: Deposits 2,806 1,374 Borrowings 373 203 Total interest expense 3,179 1,577 Net interest income 5,102 5,198 Provision for loan losses 169 - Net interest income after provision for loan losses 4,933 5,198 Noninterest income: Service charges on deposit accounts 314 310 Fees from trust services 317 280 Other income 198 148 Total noninterest income 829 738 Noninterest expenses: Compensation and benefits 2,502 2,364 Occupancy and equipment 557 534 Data processing & outside service fees 235 205 Advertising 46 48 Other 642 606 Total noninterest expenses 3,982 3,757 Income before income taxes 1,780 2,179 Income tax 394 460 Net income $ 1,386 $ 1,719 Basic and Diluted earnings per share $ 1.25 $ 1.55
SOURCE: KS Bancorp, Inc. View the original press release on accesswire.com
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