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

SMITHFIELD, N.C., Jan. 29, 2016 (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 $417,000, or $.32 per diluted share, for the three months ended December 31, 2015, compared to a net income available to common shareholders of $404,000, or $.31 per diluted share, for the three months ended December 31, 2014.

Net interest income for the three months ended December 31, 2015 and December 31, 2014 was $2.7 million. Non-interest income for the period ended December 31, 2015 was $615,000, compared to $534,000 for the same period ended December 31, 2014. Non-interest expense for the three months ended December 31, 2015 was $2.5 million compared to $2.6 million for the same period ended December 31, 2014.

For the twelve months ended December 31, 2015, net interest income was $10.5 million, compared to net interest income of $10.1 million for the twelve months ended December 31, 2014. Non-interest income was $2.1 million and $2.0 million for the twelve months ended December 31, 2015 and December 31, 2014, respectively. Non-interest expenses remain constant at $10.3 million for the twelve months ended December 31, 2015 and December 31, 2014.

The Company’s unaudited consolidated total assets increased $18.9 million to $337.4 million at December 31, 2015, compared to $318.5 million at December 31, 2014. Net loan balances increased $26.2 million with a balance of $247.6 million at December 31, 2015, compared to $221.4 million at December 31, 2014. The Company’s investment securities decreased $5.3 million to $67.6 million at December 31, 2015, compared to $72.9 million at December 31, 2014. Total deposits have increased $8.6 million to $257.5 million at December 31, 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 December 31, 2015.

Nonperforming assets, which includes nonaccrual loans and other real estate owned (OREO), decreased $3.2 million from $6.5 million at December 31, 2014 to $3.3 million at December 31, 2015. The nonperforming assets consist of $753,000 in OREO and $2.5 million in nonaccrual loans. For the twelve months ended December 31, 2015, there was $114,000 expensed to the provision for loan losses. The allowance for loan losses at December 31, 2015 totaled $3.5 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 14.09%, tier 1 risk- based capital of 12.84%, common equity tier 1 risked based capital of 12.84%, and a tier 1 leverage ratio of 9.63% at December 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.

In addition, the Company announced today that its Board of Directors voted to declare an annual dividend based on 2015 earnings of $.08 per share for stockholders of record on January 29, 2016 with payment to be made on February 12, 2016.

Commenting on the fourth quarter of 2015 results, Mr. Keen, President and Chief Executive Officer, stated, “In 2015, the Company experienced solid, steady growth. We are pleased to report continued growth in the balance sheet, net income, and value of the Company. We are extremely pleased with the 42.5% increase in annual per share earnings.”

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
December 31, 2015December 31,
(unaudited) 2014*
(Dollars in thousands)
ASSETS
Cash and due from banks:
Interest-earning$ 3,839 $ 4,188
Noninterest-earning 836 1,328
Time Deposit 100 100
Investment securities available for sale, at fair value 67,582 72,944
Federal Home Loan Bank stock, at cost 1,991 1,785
Loans 251,163 224,912
Less allowance for loan losses (3,535) (3,511)
Net loans 247,628 221,401
Accrued interest receivable 1,008 994
Foreclosed real estate and repossessions, net 753 2,121
Property and equipment, net 8,059 8,161
Other assets 5,638 5,429
Total assets$ 337,434 $ 318,451
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits$ 257,514 $ 248,915
Short-term borrowings 10,687 1,837
Long-term borrowings 43,248 43,248
Accrued interest payable 272 339
Accrued expenses and other liabilities 2,805 2,344
Total liabilities 314,526 296,683
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 21,508 20,171
Accumulated other comprehensive loss (207) (10)
Total stockholders' equity 22,908 21,768
Total liabilities and stockholders' equity$ 337,434 $ 318,451
* Derived from audited financial statements

KS Bancorp, Inc and Subsidiary
Consolidated Statements of Income (Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2015 2014 2015 2014
( In thousands, except per share data)
Interest and dividend income:
Loans$ 2,999 $ 2,869 $ 11,584 $ 10,866
Investment securities
Taxable 310 319 1,261 1,273
Tax-exempt 50 90 267 441
Dividends 24 44 84 80
Interest-bearing deposits 1 2 7 4
Total interest and dividend income 3,384 3,324 13,203 12,664
Interest expense:
Deposits 314 292 1,248 1,139
Borrowings 364 373 1,446 1,430
Total interest expense 678 665 2,694 2,569
Net interest income 2,706 2,659 10,509 10,095
Provision for (recovery of) loan losses 114 (59) 114 -
Net interest income after
provision for (recovery of ) loan losses 2,592 2,718 10,395 10,095
Noninterest income:
Service charges on deposit accounts 332 310 1,257 1,251
Fees from presold mortgages 18 19 145 148
Gain on sale of investments - 25 - 91
Other income 265 180 681 490
Total noninterest income 615 534 2,083 1,980
Noninterest expenses:
Compensation and benefits 1,671 1,505 6,431 5,991
Occupancy and equipment 269 265 1,065 1,038
Data processing & outside service fees 239 228 925 896
Advertising 23 16 63 66
Net foreclosed assets (147) 64 (116) 269
Other 488 477 1,977 2,055
Total noninterest expenses 2,543 2,555 10,345 10,315
Income before income taxes 664 697 2,133 1,760
Income tax 247 231 717 490
Net income 417 466 1,416 1,270
Dividends on preferred stock - (62) - (246)
Accretion of discount on preferred stock, net - - - (30)
Income available to common stockholders$ 417 $ 404 $ 1,416 $ 994
Basic and Diluted earnings per share$ 0.32 $ 0.31 $ 1.08 $ 0.76


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

Source:KS Bancorp