KS Bancorp, Inc., parent company of KS Bank, Inc. has announced unaudited results for the second quarter of 2019.
Net income for the three months ended June 30, 2019 was $907,000, or $0.82 per diluted share compared to net income of $887,000, or $0.71 per diluted share for the three months ended June 30, 2018. For the six months ended June 30, 2019, the Company reported $1.7 million, or $1.56 per diluted share compared to $1.6 million, or $1.31 per diluted share for the six months ended June 30, 2018.
Net interest income for the three months ended June 30, 2019, was $3.2 million as compared to $3.1 million for the comparable period in 2018. Noninterest income for the three months ended June 30, 2019 was $860,000, compared to $882,000 for the comparable period ended June 30, 2018. Noninterest expense remained constant at $2.9 million for the three months ended June 30, 2019 as compared to the comparable period in 2018.
For the six months ended June 30, 2019, net interest income was $6.3 million, compared to $6.2 million for the six months ended June 30, 2018. Noninterest income remained constant at $1.6 million for the six months ended June 30, 2019 and June 30, 2018. Noninterest expense remained constant at $5.7 million for the six months ended June 30, 2019 and June 30, 2018.
The Company’s unaudited consolidated total assets decreased $3.3 million, to $396.9 million at June 30, 2019, compared to $400.2 million at December 31, 2018. Net loan balances increased by $8.3 million, to $303.9 million at June 30, 2019 compared to $295.6 million at December 31, 2018. The Company’s investment securities totaled $65.7 million at June 30, 2019, compared to $66.0 million at December 31, 2018. Total deposits decreased $9.8 million to $320.6 million at June 30, 2019, compared to $330.4 million at December 31, 2018. The primary reduction in deposits was the result of a reduction of $6.3 million in brokered deposits. Total stockholders’ equity increased from $22.1 million at December 31, 2018 to $25.0 million at June 30, 2019, a 12.95% increase .
Nonperforming assets consisted of $1.3 million nonaccrual loans at June 30, 2019, representing less than 0.50% of the Company’s total assets. The Company had no foreclosed real estate owned at June 30, 2019. The Company recorded a provision for loan loss of $25,000 for the three months ended June 30, 2019, compared to no provision for the same period in 2018. The allowance for loan losses at June 30, 2019 totaled $4.0 million, or 1.31% of loans.
Commenting on the second quarter results, Harold Keen, President and CEO of the Company and the Bank stated, “This quarter continues our efforts to balance growth and profits in line with building a strong community bank. The increase in the per share earnings for the six months ending June 30, 2019 was $0.25 greater than the same period in 2018. Building a solid foundation should prepare KS Bancorp for both the opportunities and challenges of the future. Community banks with a long term focus are important for shareholders, customers, and all related stakeholders.”
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 July 19, 2019, with payment to be made on July 31, 2019.
KS Bank continues to be well-capitalized according to regulatory standards with total risk-based capital of 14.15%, tier 1 risk- based capital of 12.89%, common equity tier 1 risk- based capital of 12.89%, and a tier 1 leverage ratio of 9.89% at June 30, 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.
