KS Bancorp, Inc. (KSBI) Announces Fourth Quarter 2024 Financial Results and Cash Dividend

Rhea-AI Summary

KS Bancorp (KSBI) reported Q4 2024 net income of $1.7 million ($1.49 per diluted share), up from $1.5 million ($1.35 per diluted share) in Q4 2023. Excluding one-time expenses related to Garner branch redevelopment, Q4 2024 net income would have been $2.1 million ($1.91 per diluted share).

Key financial highlights include: Net interest income increased to $6.2 million in Q4 2024 from $5.0 million in Q4 2023. Full-year 2024 net income was $6.1 million ($5.56 per share), slightly down from $6.2 million ($5.60 per share) in 2023. Total assets grew 12.5% to $690.7 million, with net loans up 17.3% to $554.5 million. Core deposits increased 13.1% to $618.1 million.

The company declared a quarterly dividend of $0.27 per share, maintaining strong capitalization with a Community Bank Leverage Ratio of 9.24%.

Positive

• Net income increased 13.3% YoY to $1.7M in Q4 2024
• Net interest income grew 24% to $6.2M in Q4 2024
• Total assets increased 12.5% to $690.7M
• Net loans grew 17.3% to $554.5M
• Core deposits increased 13.1%
• Low nonperforming assets at 0.10% of total assets

Negative

• Full-year net income decreased from $6.2M in 2023 to $6.1M in 2024
• Community Bank Leverage Ratio declined from 9.67% to 9.24%
• One-time expenses from Garner branch redevelopment impacted Q4 earnings
• Non-interest expenses increased 20% YoY in Q4 2024

SMITHFIELD, NC / ACCESS Newswire / January 29, 2025 / 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.

View the original press release on ACCESS Newswire

FAQ

What was KSBI's Q4 2024 earnings per share?

KSBI reported earnings of $1.49 per diluted share in Q4 2024, or $1.91 per share excluding one-time expenses related to the Garner branch redevelopment.

How much did KSBI's loan portfolio grow in 2024?

KSBI's net loan balances increased by 17.3% or $81.6 million to $554.5 million at December 31, 2024.

What is KSBI's quarterly dividend for Q4 2024?

KSBI declared a quarterly dividend of $0.27 per share, payable on February 11, 2025.

How did KSBI's total deposits change in 2024?

Total deposits increased by 13.4% or $73.1 million to $618.1 million, including a $66.1 million increase in core deposits.

What was KSBI's asset quality in Q4 2024?

Nonperforming assets were less than 0.10% of total assets, with nonaccrual loans of $782,000 and no foreclosed real estate.