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

SMITHFIELD, N.C., Oct. 26, 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 $350,000, or $.27 per diluted share, for the three months ended September 30, 2015, compared to a net income available to common shareholders of $331,000, or $.25 per diluted share, for the three months ended September 30, 2014.

For the nine months ended September 30, 2015, net income available to common shareholders totaled $999,000, an increase in $408,000, or 69.04% from $591,000 for the same period ended September 30, 2014. Net income per common share increased from $0.45 at September 30, 2014 to $.76 at September 30, 2015.

Net interest income for the three months ended September 30, 2015 and September 30, 2014 was $2.6 million. Non-interest income for the period ended September 30, 2015 was $538,000, compared to $506,000 for the same period ended September 30, 2014. Non-interest expense for the three months ended September 30, 2015 was $2.6 million compared to $2.4 million for the same period ended September 30, 2014.

For the nine months ended September 30, 2015, net interest income was $7.8 million, compared to net interest income of $7.4 million for the nine months ended September 30, 2014. Non-interest income was $1.5 million and $1.4 million for the nine months ended September 30, 2015 and September 30, 2014, respectively. Non-interest expenses remain constant at $7.8 million for the nine months ended September 30, 2015 and September 30, 2014.

The Company’s unaudited consolidated total assets increased $12.2 million to $330.6 million at September 30, 2015, compared to $318.5 million at December 31, 2014. Net loan balances increased $17.5 million with a balance of $238.9 million at September 30, 2015, compared to $221.4 million at December 31, 2014. The Company’s investment securities decreased $4.0 million to $68.9 million at September 30, 2015, compared to $72.9 million at December 31, 2014. Total deposits have increased $10.3 million to $259.2 million at September 30, 2015, compared to $248.9 million at December 31, 2014. Total stockholders’ equity increased $1.1 million from $21.8 million at December 31, 2014, to $22.9 million at September 30, 2015.

Nonperforming assets, which includes nonaccrual loans and other real estate owned (OREO), decreased $1.4 million from $6.4 million at December 31, 2014 to $5.1 million at September 30, 2015. The nonperforming assets consist of $1.3 million in OREO and $3.8 million in nonaccrual loans. For the nine months ended September 30, 2015, there was no expense to the provision for loan losses. The allowance for loan losses at September 30, 2015 totaled $3.4 million, or 1.41% of all outstanding loans.

KS Bank continues to be well-capitalized according to regulatory standards with total risk based capital of 14.99%, tier 1 risk- based capital of 13.74%, common equity tier 1 risked based capital of 13.74%, and a tier 1 leverage ratio of 9.68% at September 30, 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 third quarter of 2015 results, Mr. Keen, President and CEO, stated, “During the third quarter, KS Bank acquired a team of trust services officers, and their related book of business. Non-reoccurring expenses related to the start-up of trust services reduced earnings during the third quarter. Going forward trust services should be a net contributor to overall income for the company. Off balance sheet assets under management by KS Wealth Management Services at September 30, 2015 were $85 million. The addition of trust services allows KS Bank to more fully build relationships with existing and future customers, and continues to build the value of KS Bancorp.”

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
September 30, 2015 December 31,
(unaudited) 2014*
(Dollars in thousands)
ASSETS
Cash and due from banks:
Interest-earning$ 4,019 $ 4,188
Noninterest-earning 1,090 1,328
Time Deposit 100 100
Investment securities available for sale, at fair value 68,879 72,944
Federal Home Loan Bank stock, at cost 1,689 1,785
Loans 242,328 224,912
Less allowance for loan losses (3,434) (3,511)
Net loans 238,894 221,401
Accrued interest receivable 1,064 994
Foreclosed real estate and repossessions, net 1,336 2,121
Property and equipment, net 8,033 8,161
Other assets 5,534 5,429
Total assets$ 330,638 $ 318,451
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits$ 259,234 $ 248,915
Short-term borrowings 1,881 1,837
Long-term borrowings 43,248 43,248
Accrued interest payable 261 339
Accrued expenses and other liabilities 3,132 2,344
Total liabilities 307,756 296,683
Stockholder's Equity:
Common stock, no par value, authorized 20,000,000 shares;
1,309,501 shares issued and outstanding in 2015 and 2014 1,607 1,607
Retained earnings, substantially restricted 21,092 20,171
Accumulated other comprehensive income (loss) 183 (10)
Total stockholders' equity 22,882 21,768
Total liabilities and stockholders' equity$ 330,638 $ 318,451
* Derived from audited financial statements

KS Bancorp, Inc and Subsidiary
Consolidated Statements of Income (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2015 2014 2015 2014
( In thousands, except per share data)
Interest and dividend income:
Loans$ 2,923 $ 2,772 $ 8,585 $ 7,997
Investment securities
Taxable 317 319 951 954
Tax-exempt 57 110 217 351
Dividends 19 12 60 36
Interest-bearing deposits 1 1 6 2
Total interest and dividend income 3,317 3,214 9,819 9,340
Interest expense:
Deposits 316 277 934 847
Borrowings 357 353 1,082 1,057
Total interest expense 673 630 2,016 1,904
Net interest income 2,644 2,584 7,803 7,436
Provision for loan losses - 59 - 59
Net interest income after
provision for loan losses 2,644 2,525 7,803 7,377
Noninterest income:
Service charges on deposit accounts 318 328 925 941
Fees from presold mortgages 34 37 127 129
Gain on sale of investments - 26 - 66
Other income 186 115 416 310
Total noninterest income 538 506 1,468 1,446
Noninterest expenses:
Compensation and benefits 1,633 1,456 4,760 4,486
Occupancy and equipment 165 162 502 774
Data processing & outside service fees 343 310 980 667
Advertising 12 17 40 50
Net foreclosed real estate 5 51 31 205
Other 475 487 1,489 1,578
Total noninterest expenses 2,633 2,483 7,802 7,760
Income before income taxes 549 548 1,469 1,063
Income tax 199 134 470 259
Net income 350 414 999 804
Dividends on preferred stock - (75) - (184)
Accretion of discount on preferred stock, net - (8) - (29)
Income available to common stockholders$ 350 $ 331 $ 999 $ 591
Basic and Diluted earnings per share$ 0.27 $ 0.25 $ 0.76 $ 0.45


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

Source:KS Bancorp