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KS Bancorp, Inc. (KSBI) Announces First Quarter 2015 Financial Results

SMITHFIELD, N.C., April 27, 2015 (GLOBE NEWSWIRE) -- KS Bancorp, Inc. (the "Company") (OTCBB:KSBI), parent company of KS Bank, Inc. (the "Bank"), announced unaudited net income available to common shareholders of $322,000, or $.25 per diluted share, for the three months ended March 31, 2015, compared to a net income available to common shareholders of $101,000, or $.08 per diluted share, for the three months ended March 31, 2014.

Net interest income for the quarter ended March 31, 2015 was $2.6 million, compared to $2.4 million for the same period in 2014. Non-interest income for the period ended March 31, 2015 was $444,000, compared to $472,000 for the same period ended March 31, 2014. Non-interest expense for the three months ended March 31, 2015 was $2.5 million, compared to $2.6 million for the same period in 2014.

In the first quarter of 2015, the Company's unaudited consolidated total assets increased $7.0 million to $325.5 million at March 31, 2015, compared to $318.5 million at December 31, 2014. Net loan balances increased $2.7 million with a balance of $224.1 million at March 31, 2015, compared to $221.4 million at December 31, 2014. The Company's investment securities decreased $1.3 million to $71.6 million at March 31, 2015, compared to $72.9 million at December 31, 2014. Total deposits have increased $6.1 million to $255.0 million at March 31, 2015, compared to $248.9 at December 31, 2014. Total stockholders' equity increased $603,000 from $21.8 million at December 31, 2014, to $22.4 million at March 31, 2015.

Nonperforming assets, which includes nonaccrual loans and OREO, decreased $1.5 million from $6.4 million at December 31, 2014 to $4.9 million at March 31, 2015. The nonperforming assets consist of $1.2 million in OREO and $3.7 million in nonaccrual loans. For the three months ended March 31, 2015, there was no expense to the provision for loan losses. The allowance for loan losses at March 31, 2015 totaled $3.5 million, or 1.54% of all outstanding loans.

KS Bank continues to be well-capitalized according to regulatory standards with total risk based capital of 15.47%, tier 1 risk- based capital of 14.22%, common equity tier 1 risked based capital 14.22%, and a tier 1 leverage ratio of 9.79% at March 31, 2015. The minimum levels to be considered well capitalized for each of these ratios are 10.0%, 8.0%, 6.5%, and 5.0%, respectively.

Commenting on the first quarter of 2015 results, Mr. Keen, President and CEO, stated, "The Bank continues to experience strong loan demand and deposit growth. The first quarter result met budgeted balance sheet growth and profit goals, which gives us a great start for 2015. The KS Bank's team remains committed to our communities where we live, work and volunteer."

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 wealth management advisory 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. 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
March 31, 2015 December 31,
(unaudited) 2014*
(Dollars in thousands)
ASSETS
Cash and due from banks:
Interest-earning $ 11,104 $ 4,188
Noninterest-earning 1,246 1,328
Time Deposit 100 100
Investment securities available for sale, at fair value 71,602 72,944
Federal Home Loan Bank stock, at cost 1,771 1,785
Presold mortgages in process of settlement 94 --
Loans 227,616 224,912
Less allowance for loan losses (3,511) (3,511)
Net loans 224,105 221,401
Accrued interest receivable 1,123 994
Foreclosed real estate and repossessions, net 1,177 2,121
Property and equipment, net 8,090 8,161
Other assets 5,128 5,429
Total assets $ 325,540 $ 318,451
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits $ 254,977 $ 248,915
Short-term borrowings 1,879 1,837
Long-term borrowings 43,248 43,248
Accrued interest payable 262 339
Accrued expenses and other liabilities 2,803 2,344
Total liabilities 303,169 296,683
Stockholder's Equity:
Preferred stock, no par value, 5,000,000 shares authorized; no shares issued and outstanding -- --
Common stock, no par value, authorized 20,000,000 shares; 1,309,501 shares issued and outstanding 1,607 1,607
Retained earnings, substantially restricted 20,415 20,171
Accumulated other comprehensive income (loss) 349 (10)
Total stockholders' equity 22,371 21,768
Total liabilities and stockholders' equity $ 325,540 $ 318,451
* Derived from audited financial statements
KS Bancorp, Inc and Subsidiary
Consolidated Statements of Income (Unaudited)
Three Months Ended
March 31,
2015 2014
( In thousands, except per share data)
Interest and dividend income:
Loans, including fees $ 2,816 $ 2,572
Investment securities
Taxable 314 322
Tax-exempt 85 127
Dividends 20 12
Interest-bearing deposits 2 1
Total interest and dividend income 3,237 3,034
Interest expense:
Deposits 304 294
Borrowings 370 353
Total interest expense 674 647
Net interest income 2,563 2,387
Provision for loan losses -- --
Net interest income after provision for loan losses 2,563 2,387
Noninterest income:
Service charges on deposit accounts 301 301
Fees from presold mortgages 19 45
Gain on sale of investments -- 31
Other income 124 95
Total noninterest income 444 472
Noninterest expenses:
Compensation and benefits 1,536 1,513
Occupancy and equipment 263 262
Data processing & outside service fees 231 228
Advertising 15 19
Foreclosed real estate and repossessions, net 25 103
Other 480 535
Total noninterest expenses 2,550 2,660
Income before income taxes 457 199
Income tax expense 135 32
Net income 322 167
Preferred stock dividends -- (55)
Accretion of discount, net -- (11)
Income available to common stockholders $ 322 $ 101
Basic and Diluted earnings per share $ 0.25 $ 0.08

CONTACT: Harold T. Keen President and Chief Executive Officer (919) 938-3101 Regina J Smith Chief Financial Officer (919) 938-3101

Source:KS Bancorp