SMITHFIELD, N.C., Oct. 23, 2020 (GLOBE NEWSWIRE) -- KS Bancorp, Inc. (OTCBB: KSBI), parent company of KS Bank, Inc., announced unaudited results for the third quarter of 2020.
The Company reported net income of $1,145,000 or $1.03 per diluted share, an increase of 17.3% for the three months ended September 30, 2020, compared to net income of $976,000 or $0.88 per diluted share, for the three months ended September 30, 2019. For the nine months ended September 30, 2020, the Company reported net income of $3.0 million, or $2.74 per diluted share compared to $2.7 million, or $2.44 per diluted share for the nine months ended September 30, 2019.
Net interest income for the three months ended September 30, 2020, was $3.8 million as compared to $3.3 million for the comparable period in 2019. Noninterest income for the three months ended September 30, 2020 was $745,000, compared to $810,000 for the comparable period ended September 30, 2019. Noninterest expense was $3.0 million for the three months ended September 30, 2020, as compared $2.9 million in the comparable period in 2019. The Company recorded a provision for loan losses of $45,000 during the third quarter 2020.
For the nine months ended September 30, 2020, net interest income was $10.9 million, compared to $9.7 million for the nine months ended September 30, 2019. Noninterest income was $2.1 million for the nine months ended September 30, 2020, compared to $2.4 million for the nine months ended September 30, 2019. Noninterest expense was $9.0 million for the nine months ended September 30, 2020, compared to $8.7 million for the nine months ended September 30, 2019.
The Company’s unaudited consolidated total assets increased $74.6 million, to $478.3 million at September 30, 2020, compared to $403.7 million at December 31, 2019. Net loan balances increased by $53.9 million, or 17.5%, to $361.8 million at September 30, 2020, compared to $307.9 million at December 31, 2019. The increase in loans was primarily due to market demand and the Bank provided $29.3 million of payroll protection plan loans (PPP) in the second quarter, 2020. The Company’s investment securities totaled $63.7 million at September 30, 2020, compared to $67.1 million at December 31, 2019. Total deposits increased $67.4 million to $394.3 million at September 30, 2020, compared to $326.9 million at December 31, 2019. For the nine months ended September 30, 2020, there was a $65.8 million increase in core deposits and a $2.4 million increase in brokered funding. Total stockholders’ equity increased $3.9 million or 14.41% from $26.8 million at December 31, 2019 to $30.7 million at September 30, 2020, as a result of accumulated other comprehensive gains and increase in net income.
Nonperforming assets consisted of $1.2 million nonaccrual loans at September 30, 2020, representing less than 0.50% of the Company’s total assets. The Company had no foreclosed real estate owned at September 30, 2020. The allowance for loan losses at September 30, 2020 totaled $4.3 million, or 1.16% of total loans, including the PPP loans originated. Excluding the PPP from the total loans, the allowance for loan losses at September 30, 2020 was 1.26% of loans.
Commenting on the third quarter results, Harold Keen, President and CEO of the Company and the Bank, stated, “With all the stress and uncertainty experienced during the third quarter of 2020 for each of us personally and as a Company, the financial results bring some reassurance that KS Bancorp’s growth and returns remain on track for a sound year. Our team members have excelled at providing quality service to individuals and businesses challenged by COVID-19, while balancing all the changes we have experienced at home, especially those with young school aged children. We continue to focus on our customers and safety during these unsettled times.”
In addition, the Company announced today that its Board of Directors has declared a quarterly dividend of $0.10 per share for stockholders of record as of October 30, 2020, with payment to be made on November 9, 2020.
KS Bank continues to be well-capitalized according to regulatory standards with total risk-based capital of 14.55%, tier 1 risk- based capital of 13.30%, common equity tier 1 risk- based capital of 13.30%, and a tier 1 leverage ratio of 8.89% at September 30, 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 a presence in Waynesville and Wilmington, NC. For more information, visit www.ksbankinc.com.
