KS Bancorp, Inc. (the "Company") (OTC PINK:KSBI), parent company of KS Bank, Inc. (the "Bank"), announced unaudited results for the fourth quarter of 2024 and cash dividend.

The Company reported net income of $1.7 million or $1.49 per diluted share for the three months ended December 31, 2024, compared to net income of $1.5 million or $1.35 per diluted share for the three months ended December 31, 2023. During the fourth quarter of 2024, KS Bank booked one-time, non-recurring accounting expenses related to the redevelopment of our Garner branch site. The bank had excess land at its Garner, NC location. As a result, the bank subdivided the lot, demolished the old branch, built a new branch in the same location, and sold the remainder of the lot for commercial development. This new branch positions the bank to better serve the Garner, Wake County, NC area. Without these extraordinary expenses, net income for the fourth quarter would have been $2.1 million or $1.91 per diluted share for the three months ended December 31, 2024.

Net interest income before the provision for credit losses for the three months ended December 31, 2024 was $6.2 million, compared to $5.0 million at December 31, 2023. Non-interest income for the three months ended December 31, 2024, was $915,000, compared to $840,000 for the comparable period ended December 31, 2023. Non-interest expense was $4.8 million for the three months ended December 31, 2024, compared to $4.0 million in the comparable period in 2023. Included in the non-interest expense for the three months ended December 31, 2024, are one-time net expenses related to the disposal of the former Garner Branch.

For the twelve months ended December 31, 2024, the Company reported net income of $6.1 million, or $5.56 per diluted share, compared to $6.2 million, or $5.60 per diluted share for the twelve months ended December 31, 2023.

For the twelve months ended December 31, 2024, the net interest income before the provision for credit losses was $22.2 million, compared to $20.3 million for the twelve months ending December 31, 2023, resulting in a 9.6% increase in net interest income. Non-interest income was $3.5 million for the twelve months ending December 31, 2024, compared to $3.2 million for the same period ended December 31, 2023. The increase is primarily attributable to the continued growth of the Wealth and Trust Services. For the twelve months ended December 31, 2024, non-interest expenses were $17.1 million, compared to $15.3 million for the same period ending December 31, 2023. The increase in non-interest expense is primarily attributable to opening two new branches in 2024 and the disposal of the former Garner Branch.

The Company's unaudited consolidated total assets increased 12.5% or $77.1 million to $690.7 million at December 31, 2024, compared to $613.6 million at December 31, 2023. Net loan balances increased 17.3% or $81.6 million to $554.5 million at December 31, 2024, compared to $472.9 million at December 31, 2023. The Company's investment securities totaled $95.9 million at December 31, 2024, compared to $98.0 million at December 31, 2023. Total deposits increased 13.4% or $73.1 million to $618.1 million at December 31, 2024, compared to $545.0 million at December 31, 2023. The increase in deposits included a $66.1 million increase or 13.1% in core deposits. Total stockholders' equity increased $4.8 million to $45.3 million at December 31, 2024, from $40.5 million at December 31, 2023. The increase in stockholder's equity was primarily attributable to the increase in retained earnings of $5.0 million.

On December 31, 2024, nonperforming assets consisted of nonaccrual loans of $782,000, representing less than 0.10% of the Company's total assets. No foreclosed real estate was owned on December 31, 2024. The allowance for credit losses on December 31, 2024, totaled $4.3 million, or 0.77% of total loans.

Commenting on the fourth quarter results, Earl W. Worley, Jr., President and CEO of the Company, stated, "We are pleased with KS Bank's strong performance in the fourth quarter and throughout 2024. Our focus on strategic growth, such as the redevelopment of our Garner branch, demonstrates our commitment to better serving the growing communities in eastern North Carolina. Despite the one-time expenses associated with these developments, our core results remain robust, with net income for the quarter reaching $1.7 million, or $2.1 million, excluding extraordinary expenses.

Over the course of the year, we achieved impressive growth in key areas. Total loans increased by 17.3%, reflecting the strength of our lending efforts and our ability to meet the needs of our customers. Additionally, stockholders' equity grew by 11.9%, further solidifying the Company's strong financial position. Overall, total assets increased by 12.5%, and core deposits rose by 13.1%. These results underscore our customers' trust in us and our ability to deliver consistent value.

As we look ahead, we remain dedicated to navigating the evolving interest rate environment while continuing to prioritize shareholder value and community impact. KS Bank's solid financial foundation positions us well to build on this success in 2025 and beyond."

In addition, the Company announced today that its Board of Directors has declared a quarterly dividend of $0.27 per share for stockholders of record as of February 3, with payment to be made on February 11, 2025.

KS Bank continues to be well capitalized according to regulatory standards, with a Community Bank Leverage Ratio of 9.24% on December 31, 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

December 31, 2024

December 31,

(unaudited)

2023*

(Dollars in thousands)

ASSETS

Cash and due from banks:

Interest-earning

$

10,628

$

15,962

Noninterest-earning

4,897

2,983

Time Deposit

523

500

Investment securities available for sale, at fair value

95,946

98,047

Federal Home Loan Bank stock, at cost

469

978

Loans

558,779

476,679

Less allowance for loan losses

(4,259

)

(3,766

)

Net loans

554,520

472,913

Accrued interest receivable

2,655

2,389

Property and equipment, net

12,231

11,050

Other assets

8,838

8,774

Total assets

$

690,707

$

613,596

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Deposits

$

618,156

$

545,038

Short-term borrowings

11,144

12,000

Long-term borrowings

11,248

11,248

Accrued interest payable

324

432

Accrued expenses and other liabilities

4,510

4,401

Total liabilities

645,382

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 December 31, 2024 and 2023, respectively

1,359

1,359

Retained earnings, substantially restricted

52,674

47,659

Accumulated other comprehensive (loss)

(8,708

)

(8,541

)

Total stockholders' equity

45,325

40,477

Total liabilities and stockholders' equity

$

690,707

$

613,596

* Derived from audited financial statements

KS Bancorp, Inc and Subsidiary
Consolidated Statements of Income (Unaudited)

Three Months Ended

Twelve Months Ended

31-Dec

31-Dec

2024

2023

2024

2023

(In thousands, except per share data)

Interest and dividend income:

Loans, including fees

$

8,749

$

6,927

$

32,269

$

25,579

Investment securities

Taxable

564

511

2,138

1,956

Tax-exempt

182

203

771

816

Dividends

29

10

47

25

Interest-bearing deposits

203

212

925

1,026

Total interest and dividend income

9,727

7,863

$

36,150

29,402

Interest expense:

Deposits

3,472

2,673

13,100

8,386

Borrowings

98

196

848

761

Total interest expense

3,570

2,869

13,948

9,147

Net interest income

6,157

4,994

22,202

20,255

Provision for loan losses

47

-

501

290

Net interest income after

provision for loan losses

6,110

4,994

21,701

19,965

Noninterest income:

Service charges on deposit accounts

369

332

1,343

1,317

Fees from trust services

368

322

1,391

1,216

Other income

178

186

754

686

Total noninterest income

915

840

3,488

3,219

Noninterest expenses:

Compensation and benefits

2,519

2,384

10,066

9,480

Occupancy and equipment

751

570

2,535

2,161

Data processing & outside service fees

256

237

988

870

Advertising

56

65

228

243

Other

1,187

693

3,247

2,592

Total noninterest expenses

4,769

3,949

17,064

15,346

Income before income taxes

2,256

1,885

8,125

7,838

Income tax

603

385

1,968

1,629

Net income

$

1,653

$

1,500

$

6,157

$

6,209

Basic and Diluted earnings per share

$

1.49

$

1.35

$

5.56

$

5.60

Contact:

Earl W. Worley, Jr.
President and Chief Executive Officer
(919) 938-3101

Regina J Smith
Chief Financial Officer
(919) 938-3101

SOURCE: KS Bancorp, Inc.

Information contained on this page is provided by an independent third-party content provider. XPRMedia and this Site make no warranties or representations in connection therewith. If you are affiliated with this page and would like it removed please contact pressreleases@xpr.media