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

Rhea-AI Summary

KS Bancorp (KSBI) reported strong financial results for Q2 2024. Key highlights include:

- Net income of $1.7 million or $1.50 per diluted share, up from $1.6 million in Q2 2023
- Net interest income before provision for credit losses increased to $5.5 million
- Total assets grew to $668.8 million, a $55.2 million increase from December 2023
- Net loan balances rose by $31.4 million to $504.3 million
- Total deposits increased by $64.0 million to $609.0 million
- Stockholders' equity improved by $3.0 million to $43.5 million

The company also declared a quarterly dividend of $0.26 per share and opened a new branch in Dunn, North Carolina, marking its tenth full-service location.

Positive

• Net income increased to $1.7 million in Q2 2024, up from $1.6 million in Q2 2023
• Net interest income before provision for credit losses grew to $5.5 million from $5.1 million year-over-year
• Total assets increased by $55.2 million to $668.8 million
• Net loan balances rose by $31.4 million to $504.3 million, surpassing $500 million for the first time
• Total deposits grew by $64.0 million to $609.0 million, including a 11.5% increase in core deposits
• Nonperforming assets remained low at less than 0.20% of total assets
• Opened a new full-service branch in Dunn, North Carolina, expanding market presence

Negative

• Non-interest expenses increased to $4.1 million in Q2 2024 from $3.8 million in Q2 2023
• Community Bank Leverage Ratio decreased to 9.49% from 9.67% in December 2023

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.

View the original press release on accesswire.com

FAQ

What was KS Bancorp's (KSBI) net income for Q2 2024?

KS Bancorp (KSBI) reported a net income of $1.7 million or $1.50 per diluted share for Q2 2024.

How much did KS Bancorp's (KSBI) total assets grow in the first half of 2024?

KS Bancorp's (KSBI) total assets increased by $55.2 million to $668.8 million as of June 30, 2024, compared to December 31, 2023.

What was the growth in KS Bancorp's (KSBI) net loan balances for the first half of 2024?

KS Bancorp's (KSBI) net loan balances increased by $31.4 million to $504.3 million as of June 30, 2024, compared to December 31, 2023.

Did KS Bancorp (KSBI) declare a dividend for Q2 2024?

Yes, KS Bancorp (KSBI) declared a quarterly dividend of $0.26 per share for stockholders of record as of July 29, 2024, with payment on August 8, 2024.

Where did KS Bancorp (KSBI) open its newest branch in Q2 2024?

KS Bancorp (KSBI) opened its newest full-service branch location in Dunn, North Carolina, marking its tenth full-service location and first in Harnett County.