Smithfield – KS Bancorp, Inc. the parent company of KS Bank, Inc. announced unaudited results for the first quarter of 2019.
Net income for the three months ended March 31, 2019 was $820,000, or $0.74 per diluted share representing a 7.4% increase from the $764,000, or $0.58 per duluted share for the three months ended March 31, 2018.
Net interest income remained constant at $3.1 million for the three months ended March 31, 2019, as compared to the comparable period in 2018. Noninterest income for the three months ended March 31, 2019 was $701,000, compared to $678,000 for the comparable period ended March 31, 2018. Noninterest expense was $2.8 million for the three months ended March 31, 2019 and 2018.
The Company’s unaudited consolidated total assets decreased $3.4 million, to $396.8 million at March 31, 2019, compared to $400.2 million at December 31, 2018. Net loan balances increased by $1.6 million, to $297.2 million at March 31, 2019 compared to $295.6 million at December 31, 2018. The Company’s investment securities totaled $67.1 million at March 31, 2019, compared to $66.0 million at December 31, 2018. Total deposits decreased $5.1 million, to $325.3 million at March 31, 2019, compared to $330.4 million at December 31, 2018. Total stockholders’ equity increased from $22.1 million at December 31, 2018 to $23.3 million at March 31, 2019, a 5.18% increase .
Nonperforming assets consisted of $1.3 million nonaccrual loans at March 31, 2019, representing less than 0.50% of the Company’s total assets. The Company had no foreclosed real estate owned at March 31, 2019. The allowance for loan losses at March 31, 2019 totaled $4.0 million, or 1.33% of loans.
Commenting on the first quarter results, Harold Keen, President and CEO of the Company and the Bank, stated, “The results of the first quarter continue to reflect the solid financial position of KS Bancorp and our commitment to profitable growth for the future. The 7.4% increase in net income compared to the year ago period clearly shows that commitment. Shareholders should also find value in the 28.0% increase in the per share earnings compared to the year ago period, due to the reduced number of outstanding shares. Based on these results we are proud to have increased the quarterly dividend.”
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 April 22, 2019, with payment to be made on May 2, 2019.
KS Bank continues to be well-capitalized according to regulatory standards with total risk-based capital of 14.13%, tier 1 risk- based capital of 12.88%, common equity tier 1 risk- based capital of 12.88%, and a tier 1 leverage ratio of 9.63% at March 31, 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.