Smithfield – KS Bancorp, Inc. (OTCBB: KSBI), parent company of KS Bank, Inc. has announced unaudited results for the first quarter of 2020. The Company reported net income of $922,000, or $0.83 per diluted share, an increase of 12% for the three months ended March 31, 2020, compared to net income of $820,000 or.$0.74 per diluted share, for the three months ended March 31, 2019.
Net interest income for the three months ended March 31, 2020, was $3.5 million as compared to $3.1 million for the comparable period in 2019. The increase was primarily due to improvement in net interest margin. Noninterest income for the three months ended March 31, 2020 was $708,000, compared to $701,000 for the comparable period ended March 31, 2019. Noninterest expense was $3.0 million for the three months ended March 31, 2020, as compared $2.8 million in the comparable period in 2019. The company recorded a provision for loan losses of $45,000 during the first quarter 2020.
The Company’s unaudited consolidated total assets increased $22.5 million, to $426.2 million at March 31, 2020, compared to $403.7 million at December 31, 2019. Net loan balances increased by $24.5 million, or 8.0%, to $332.4 million at March 31, 2020, compared to $307.9 million at December 31, 2019. The increase in loans was primarily due to market demand and the addition of a new key lender in the fourth quarter of 2019.
The Company’s investment securities totaled $65.9 million atMarch 31, 2020, compared to $67.1 million at December 31, 2019. Total deposits increased $18.9 million, to $345.8 million at March 31, 2020, compared to $326.9 million at December 31, 2019.
For the three months ended March 31, 2020, there was a $14.2 million increase in core deposits and a $7.2 million increase in brokered funding. Total stockholders’ equity increased $1.5 million or 5.7% from $26.8 million at December 31, 2019 to $28.3 million at March 31, 2020, as a result of accumulated other comprehensive gains and increase in net income.
Nonperforming assets consisted of $1.2 million nonaccrual loans at March 31, 2020, representing less than .50% of the Company’s total assets. The Company had no foreclosed real estate owned at March 31, 2020. The allowance for loan losses at March 31, 2020 totaled $4.1 million, or 1.22% of loans.
Commenting on the first quarter results, Harold Keen, President and CEO of the Company and the Bank, stated, “The first quarter of 2020 was one of the best quarters on record for the Company in terms of loan and deposit growth. The Bank’s market area continues to have strong demand for new housing and commercial business growth. Our Team has done an excellent job of capturing new clients in both loans and deposits. COVID-19 has brought about rapid change for many of our customers; however, our team has expeditiously responded to assist them. The Bank is participating in the Payroll Protection Program (PPP) and many of our clients have been able to take advantage of the PPP program. We are hopeful that as the COVID-19 crisis peaks that our local, state, and national economies can rebound quickly.”
In addition, the Company announced that its Board of Directors has declared a quarterly dividend of $0.10 per share for stockholders of record as of May 1, 2020, with payment to be made on May 11, 2020.
KS Bank continues to be well-capitalized according to regulatory standards with total risk-based capital of 13.10%, tier 1 risk- based capital of 11.89%, common equity tier 1 risk- based capital of 11.89%, and a tier 1 leverage ratio of 9.69% at March 31, 2020. 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. In addition, KS Trust Services has an office in Asheboro, NC and maintains a presence in Waynesville and Wilmington, NC.
