SMITHFIELD, N.C., Oct. 25, 2016 (GLOBE NEWSWIRE) -- KS Bancorp, Inc. (the “Company”) (OTCBB:KSBI), parent company of KS Bank, Inc. (the “Bank”), announced unaudited net income of $537,000, or $.41 per diluted share, for the three months ended September 30, 2016, compared to a net income of $350,000, or $.26 per diluted share, for the three months ended September 30, 2015.
For the nine months ended September 30, 2016, net income totaled $1.5 million, a $500,000 increase, or 50% from $999,000 for the same period ended September 30, 2015. Net income per common share increased from $.76 at September 30, 2015 to $1.14 at September 30, 2016.
Net interest income for the three months ended September 30, 2016 was $2.8 million, compared to $2.6 million for the same period in 2015. Non-interest income for the three months ended September 30, 2016 was $689,000, compared to $538,000 for the same period ended September 30, 2015. The increase in noninterest income is primarily the result of income from the Trust Services Division, which was added in July, 2015. There was a slight increase in noninterest expense for the three months ended September 30, 2016. Noninterest expense was $2.7 million for the three months ended September 30, 2016, as compared to $2.6 million for the same period ended September 30, 2015.
For the nine months ended September 30, 2016, net interest income was $8.4 million compared to $7.8 million for the nine months ended September 30, 2015. Noninterest income increase 39% or $575,000 from $1.5 million for the nine months ended September 30, 2015 to $2.0 million for the same period ended September 30, 2016. For the nine months ended September 30, 2016, noninterest expense was $8.1 million, as compared to $7.8 million for the same period ended September 30, 2015.
The Company’s unaudited consolidated total assets increased $14.9 million to $352.3 million at September 30, 2016, compared to $337.4 million at December 31, 2015. Net loan balances increased $11.6 million with a balance of $259.2 million at September 30, 2016, compared to $247.6 million at December 31, 2015. The Company’s investment securities totaled $66.5 million at September 30, 2016, compared to $67.6 million at September 30, 2015 which reflects a $1.1 million decrease. Total deposits have increased 7.7% or $19.8 million to $277.3 million at September 30, 2016, compared to $257.5 million at December 31, 2015. Total stockholders’ equity increased $2.1 million from $22.9 million at December 31, 2015 to $25.0 million at September 30, 2016.
Nonperforming assets, which includes nonaccrual loans and other real estate owned (OREO), represent less than 1.0% of the total assets. The nonperforming assets consist of $301,000 in OREO and $2.1 million in nonaccrual loans. For the nine months ended September 30, 2016, $5,000 was expensed to the provision for loan losses. During the third quarter 2016, there were loan recoveries totaling $135,000, which effectively increased the allowance for loan losses as a result of repayments of loans which were charged off in prior years. The allowance for loan losses at September 30, 2016 totaled $3.7 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 14.20%, tier 1 risk- based capital of 12.95%, common equity tier 1 risked based capital of 12.95%, and a tier 1 leverage ratio of 9.62% at September 30, 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.
Commenting on the third quarter results, Harold T. Keen, President/CEO stated, “We are very pleased with the third quarter and year-to-date results. The increased profitability and steady growth shown over the past several quarters are indicative of both the bank and the communities served.”
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|
|Sept 30, 2016||December 31,|
|(Dollars in thousands)|
|Cash and due from banks:|
|Investment securities available for sale, at fair value||66,512||67,582|
|Federal Home Loan Bank stock, at cost||1,791||1,991|
|Presold mortgages in process of settlement||1,085||-|
|Less allowance for loan losses||(3,679||)||(3,535||)|
|Accrued interest receivable||1,022||1,008|
|Foreclosed real estate and repossessions, net||301||753|
|Property and equipment, net||7,773||8,059|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accrued interest payable||282||272|
|Accrued expenses and other liabilities||3,504||2,805|
|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||22,903||21,508|
|Accumulated other comprehensive (loss)||524||(207||)|
|Total stockholders' equity||25,034||22,908|
|Total liabilities and stockholders' equity||$||352,281||$||337,434|
|* Derived from audited financial statements|
|KS Bancorp, Inc and Subsidiary|
|Consolidated Statements of Income (Unaudited)|
|Three Months Ended||Nine Months Ended|
|Sept 30,||Sept 30,|
|(In thousands, except per share data)|
|Interest and dividend income:|
|Total interest and dividend income||3,542||3,317||10,444||9,819|
|Total interest expense||695||673||2,080||2,016|
|Net interest income||2,847||2,644||8,364||7,803|
|Provision for loan losses||-||-||5||-|
|Net interest income after|
|provision for loan losses||2,847||2,644||8,359||7,803|
|Service charges on deposit accounts||344||318||1,026||925|
|Fees from presold mortgages||87||34||219||127|
|Gain (Loss) on sale of investments||(29||)||-||(26||)||-|
|Total noninterest income||689||538||2,043||1,468|
|Compensation and benefits||1,629||1,633||4,985||4,760|
|Occupancy and equipment||317||285||944||502|
|Data processing & outside service fees||203||223||604||980|
|Net foreclosed real estate||(1||)||5||(85||)||31|
|Total noninterest expenses||2,708||2,633||8,066||7,802|
|Income before income taxes||828||549||2,336||1,469|
|Basic and Diluted earnings per share||$||0.41||$||0.26||$||1.14||$||0.76|
Contact: Harold T. Keen President and Chief Executive Officer (919) 938-3101 Regina J Smith Chief Financial Officer (919) 938-3101