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,|
|(Dollars in thousands)|
|Cash and due from banks:|
|Interest-earning||$ 11,104||$ 4,188|
|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||--|
|Less allowance for loan losses||(3,511)||(3,511)|
|Accrued interest receivable||1,123||994|
|Foreclosed real estate and repossessions, net||1,177||2,121|
|Property and equipment, net||8,090||8,161|
|Total assets||$ 325,540||$ 318,451|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Deposits||$ 254,977||$ 248,915|
|Accrued interest payable||262||339|
|Accrued expenses and other liabilities||2,803||2,344|
|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|
|( In thousands, except per share data)|
|Interest and dividend income:|
|Loans, including fees||$ 2,816||$ 2,572|
|Total interest and dividend income||3,237||3,034|
|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|
|Service charges on deposit accounts||301||301|
|Fees from presold mortgages||19||45|
|Gain on sale of investments||--||31|
|Total noninterest income||444||472|
|Compensation and benefits||1,536||1,513|
|Occupancy and equipment||263||262|
|Data processing & outside service fees||231||228|
|Foreclosed real estate and repossessions, net||25||103|
|Total noninterest expenses||2,550||2,660|
|Income before income taxes||457||199|
|Income tax expense||135||32|
|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