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KS Bancorp, Inc. (KSBI) Announces First Quarter 2016 Financial Results

SMITHFIELD, N.C., April 25, 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 $435,000, or $.33 per diluted share, for the three months ended March 31, 2016, compared to a net income available to common shareholders of $322,000, or $.25 per diluted share, for the three months ended March 31, 2015. This represents a 35.0% increase in net income over the previous year.

Net interest income for the three months ended March 31, 2016 was $2.7 million, compared to $2.6 million for the same period in 2015. Non-interest income for the period ended March 31, 2016 was $653,000, compared to $444,000 for the same period ended March 31, 2015. The increase in noninterest income is primarily the result of income from the Trust Services Division, which was added in July, 2015. Non-interest expense for the three months ended March, 31, 2016 was $2.7 million compared to $2.6 million for the same period ended March 31, 2015.

The Company’s unaudited consolidated total assets increased $8.4 million to $345.8 million at March 31, 2016, compared to $337.4 million at December 31, 2015. Net loan balances increased $3.4 million with a balance of $251.0 million at March 31, 2016, compared to $247.6 million at December 31, 2015. The Company’s investment securities decreased $2.4 million to $65.1 million at March 31, 2016, compared to $67.5 million at December 31, 2015. Total deposits have increased $15.6 million to $273.1 million at March 31, 2016, compared to $257.5 million at December 31, 2015. Total stockholders’ equity increased $778,000 from $22.9 million at December 31, 2015, to $23.7 million at March 31, 2016.

Nonperforming assets, which includes nonaccrual loans and other real estate owned (OREO), represents less than 1.0% of the total assets. The nonperforming assets consist of $619,000 in OREO and $2.5 million in nonaccrual loans. For the three months ended March 31, 2016, $5,000 was expensed to the provision for loan losses. The allowance for loan losses at March 31, 2016 totaled $3.5 million, or 1.40% of all outstanding loans.

KS Bank continues to be well-capitalized according to regulatory standards with total risk based capital of 14.14%, tier 1 risk-based capital of 12.88%, common equity tier 1 risked based capital of 12.88%, and a tier 1 leverage ratio of 9.57% at March 31, 2016. The minimum levels to be considered well capitalized for each of these ratios are 10.0%, 8.0%, 6.5%, and 5.0%, respectively.

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. In addition, KS Wealth Management has an office in Asheboro, NC and maintains a presence in Waynesville and Wilmington, 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, 2016 December 31,
(unaudited) 2015*
(Dollars in thousands)
ASSETS
Cash and due from banks:
Interest-earning$ 11,239 $ 3,839
Noninterest-earning 1,140 836
Time Deposit 100 100
Investment securities available for sale, at fair value 65,146 67,582
Federal Home Loan Bank stock, at cost 1,749 1,991
Presold mortgages in process of settlement 510 -
Loans 254,559 251,163
Less allowance for loan losses (3,553) (3,535)
Net loans 251,006 247,628
Accrued interest receivable 1,085 1,008
Foreclosed real estate and repossessions, net 619 753
Property and equipment, net 7,971 8,059
Other assets 5,198 5,638
Total assets$ 345,763 $ 337,434
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits$ 273,162 $ 257,514
Short-term borrowings 2,379 10,687
Long-term borrowings 43,248 43,248
Accrued interest payable 284 272
Accrued expenses and other liabilities 3,003 2,805
Total liabilities 322,076 314,526
Stockholder's Equity:
Common stock, no par value, authorized 20,000,000 shares;
1,309,501 shares issued and outstanding in 2016 and 2015 1,607 1,607
Retained earnings, substantially restricted 21,839 21,508
Accumulated other comprehensive loss 241 (207)
Total stockholders' equity 23,687 22,908
Total liabilities and stockholders' equity$ 345,763 $ 337,434
* Derived from audited financial statements

KS Bancorp, Inc and Subsidiary
Consolidated Statements of Income (Unaudited)
Three Months Ended
March 31,
2016 2015
(In thousands, except per share data)
Interest and dividend income:
Loans$ 3,051 $ 2,816
Investment securities
Taxable 309 314
Tax-exempt 47 85
Dividends 24 20
Interest-bearing deposits 2 2
Total interest and dividend income 3,433 3,237
Interest expense:
Deposits 320 304
Borrowings 369 370
Total interest expense 689 674
Net interest income 2,744 2,563
Provision for (recovery of) loan losses 5 -
Net interest income after
provision for (recovery of ) loan losses 2,739 2,563
Noninterest income:
Service charges on deposit accounts 350 301
Fees from presold mortgages 33 19
Gain on sale of investments 3 -
Other income 267 124
Total noninterest income 653 444
Noninterest expenses:
Compensation and benefits 1,670 1,536
Occupancy and equipment 320 263
Data processing & outside service fees 203 231
Advertising 13 15
Net foreclosed assets 23 25
Other 507 480
Total noninterest expenses 2,736 2,550
Income before income taxes 656 457
Income tax expense 221 135
Net income$ 435 $ 322
Basic and Diluted earnings per share$ 0.33 $ 0.25

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

Source:KS Bancorp