SMITHFIELD, N.C., Oct. 25, 2017 (GLOBE NEWSWIRE) -- KS Bancorp, Inc. (the “Company”) (OTCBB:KSBI), parent company of KS Bank, Inc. (the “Bank”), announced unaudited results for the third quarter of 2017.
The Company reported net income of $782,000, or $0.60 per diluted share, for the three months ended September 30, 2017, up $245,000, or 45.6 %, compared to a net income of $537,000, or $0.41 per diluted share, for the three months ended September 30, 2016. For the nine months ended September 30, 2017, net income available to common shareholders totaled $2.0 million, or $1.57 per diluted share, up $554,000 or 37.0 %, compared to net income of $1.5 million, or $1.14 per diluted share, for the period ended September 30, 2016.
Commenting on the third quarter 2017 results, Mr. Keen, President and CEO of the Company and the Bank, stated, “These results represent another successful quarter for the Company, as we continue to implement management’s plan to maximize shareholder value by increasing income-producing assets, while controlling expenses. On behalf of the Board of Directors and our management team, I would like to thank our customers and the local communities for their continued support as we look forward to continuing to serve them as their independent community bank of choice.”
Net interest income for the three months ended September 30, 2017 was $3.0 million, compared to $2.8 million for the same period in 2016. Noninterest income for the three months ended September 30, 2017 was $702,000, compared to $689,000 for the same period ended September 30, 2016. Noninterest expense was $2.8 million for the three months ended September 30, 2017, compared to $2.7 million for the three months ended September 30, 2016.
For the nine months ended September 30, 2017, net interest income was $9.0 million, compared to $8.4 million for the nine months ended September 30, 2016. Noninterest income was unchanged at $2.0 million for the nine months ended September 30, 2016 and 2017. Noninterest expenses increased slightly to $8.2 million for the nine months ended September 30, 2017, compared to $8.1 million for the nine months ended September 30, 2016.
The Company’s unaudited consolidated total assets were $369.9 million at September 30, 2017, up $10.5 million, or 2.9%, compared to $359.4 million at December 31, 2016. Net loan balances were $283.4 million at September 30, 2017, up $17.4 million, or 6.5%, compared to $266.0 million at December 31, 2016. The Company’s investment securities totaled $60.6 million at September 30, 2017, compared to $66.2 million at December 31, 2016. Total deposits were $294.9 million at September 30, 2017, up $9.2 million, or 3.2%, compared to $285.7 million at December 31, 2016. Total stockholders’ equity was $26.6 million at September 30, 2017 up $2.2 million or 9.2%, compared to $24.4 million at December 31, 2016.
Nonperforming assets, which includes nonaccrual loans and foreclosed real estate, have continued to decline and as of September 30, 2017 represented less than 0.50% of the Company’s total assets. Nonperforming assets consist of $130,000 in foreclosed real estate and $567,000 in nonaccrual loans. The allowance for loan losses at September 30, 2017 totaled $3.9 million, or 1.35% of all outstanding loans.
Separately, Mr. Keen noted that the Board of Directors of the Company has withdrawn its plan to pursue a Subchapter S reorganization and will instead continue to operate as a C corporation.
KS Bank continues to be well-capitalized according to regulatory standards with total risk-based capital of 14.23%, tier 1 risk-based capital of 12.98%, common equity tier 1 risk-based capital of 12.98%, and a tier 1 leverage ratio of 9.84% at September 30, 2017. 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.
Contact: Harold T. Keen
President and Chief Executive Officer
Regina J Smith
Chief Financial Officer
|KS Bancorp, Inc. and Subsidiary|
|Consolidated Statements of Financial Condition|
|September 30, 2017||December 31,|
|(Dollars in thousands)|
|Cash and due from banks:|
|Investment securities available for sale, at fair value||60,613||66,208|
|Federal Home Loan Bank stock, at cost||1,811||1,791|
|Presold mortgages in process of settlement||118||-|
|Less allowance for loan losses||(3,885||)||(3,772||)|
|Accrued interest receivable||1,112||1,086|
|Foreclosed real estate and repossessions, net||130||193|
|Property and equipment, net||7,620||7,767|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accrued interest payable||308||281|
|Accrued expenses and other liabilities||3,571||2,899|
|Common stock, no par value, authorized 20,000,000 shares;|
|1,309,501 shares issued and outstanding in 2017 and 2016||1,607||1,607|
|Retained earnings, substantially restricted||25,408||23,513|
|Accumulated other comprehensive loss||(375||)||(729||)|
|Total stockholders' equity||26,640||24,391|
|Total liabilities and stockholders' equity||$||369,943||$||359,364|
|* Derived from audited financial statements|
|KS Bancorp, Inc and Subsidiary|
|Consolidated Statements of Income (Unaudited)|
|Three Months Ended||Nine Months Ended|
|September 30,||September 30,|
|( In thousands, except per share data)|
|Interest and dividend income:|
|Total interest and dividend income||3,865||3,542||11,260||10,444|
|Total interest expense||770||695||2,228||2,080|
|Net interest income||3,095||2,847||9,032||8,364|
|Provision (recovery) for loan losses||(187||)||-||(187||)||5|
|Net interest income after|
|provision (recovery) for loan losses||3,282||2,847||9,219||8,359|
|Service charges on deposit accounts||354||344||1,045||1,026|
|Fees from presold mortgages||60||87||178||219|
|Loss on sale of investments||-||(29||)||(4||)||(26||)|
|Total noninterest income||702||689||2,078||2,043|
|Compensation and benefits||1,656||1,629||4,986||4,985|
|Occupancy and equipment||309||317||909||944|
|Data processing & outside service fees||203||203||603||604|
|Net foreclosed real estate||20||(1||)||59||(85||)|
|Total noninterest expenses||2,810||2,708||8,232||8,066|
|Income before income taxes||1,174||828||3,065||2,336|
|Basic and Diluted earnings per share||$||0.60||$||0.41||$||1.57||$||1.14|