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

Rhea-AI Summary

KS Bancorp (KSBI) reported strong Q3 2024 financial results with net income of $1.5 million ($1.32 per diluted share), up from $1.4 million in Q3 2023. The company showed significant growth with total assets increasing 11.9% to $686.5 million, net loans rising 9.5% to $517.9 million, and deposits growing 14.3% to $623.2 million compared to December 2023. Net interest income before credit loss provisions was $5.5 million for Q3 2024. The Board declared a quarterly dividend of $0.26 per share. The bank maintains strong capitalization with a Community Bank Leverage Ratio of 9.28%.

Positive

• Net income increased to $1.5 million in Q3 2024 from $1.4 million in Q3 2023
• Total assets grew 11.9% to $686.5 million
• Net loans increased 9.5% to $517.9 million
• Total deposits rose 14.3% to $623.2 million
• Core deposits increased by $71.7 million (14.3%)
• Stockholders' equity increased by $6.1 million to $46.6 million
• Low nonperforming assets at less than 0.10% of total assets

Negative

• Community Bank Leverage Ratio decreased to 9.28% from 9.67% in December 2023
• Non-interest expenses increased to $4.2 million from $3.8 million YoY

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 (unaudited)				December 31, 2023*
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.

View the original press release on accesswire.com

FAQ

What was KSBI's net income for Q3 2024?

KS Bancorp (KSBI) reported net income of $1.5 million or $1.32 per diluted share for Q3 2024.

How much did KSBI's total deposits grow in 2024?

Total deposits increased 14.3% or $78.2 million to $623.2 million as of September 30, 2024, compared to $545.0 million on December 31, 2023.

What dividend did KSBI declare for Q3 2024?

KS Bancorp declared a quarterly dividend of $0.26 per share, payable on November 14, 2024, to stockholders of record as of November 4.

What was KSBI's asset growth in 2024?

KS Bancorp's total assets increased 11.9% or $72.9 million to $686.5 million as of September 30, 2024, compared to December 31, 2023.