×

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

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,
(unaudited) 2015*
(Dollars in thousands)
ASSETS
Cash and due from banks:
Interest-earning$ 8,253 $ 3,839
Noninterest-earning 923 836
Time Deposit 100 100
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 -
Loans 262,907 251,163
Less allowance for loan losses (3,679) (3,535)
Net loans 259,228 247,628
Accrued interest receivable 1,022 1,008
Foreclosed real estate and repossessions, net 301 753
Property and equipment, net 7,773 8,059
Other assets 5,293 5,638
Total assets$ 352,281 $ 337,434
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits$ 277,363 $ 257,514
Short-term borrowings 2,850 10,687
Long-term borrowings 43,248 43,248
Accrued interest payable 282 272
Accrued expenses and other liabilities 3,504 2,805
Total liabilities 327,247 314,526
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 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,
2016 2015 2016 2015
(In thousands, except per share data)
Interest and dividend income:
Loans$ 3,173 $ 2,923 $ 9,316 $ 8,585
Investment securities
Taxable 290 317 902 951
Tax-exempt 49 57 140 217
Dividends 21 19 66 60
Interest-bearing deposits 9 1 20 6
Total interest and dividend income 3,542 3,317 10,444 9,819
Interest expense:
Deposits 332 316 986 934
Borrowings 363 357 1,094 1,082
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
Noninterest income:
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) -
Other income 287 186 824 416
Total noninterest income 689 538 2,043 1,468
Noninterest expenses:
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
Advertising 26 12 71 40
Net foreclosed real estate (1) 5 (85) 31
Other 534 475 1,547 1,489
Total noninterest expenses 2,708 2,633 8,066 7,802
Income before income taxes 828 549 2,336 1,469
Income tax 291 199 837 470
Net income $ 537 $ 350 $ 1,499 $ 999
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

Source:KS Bancorp