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

SMITHFIELD, N.C., Oct. 26, 2015 (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 $350,000, or $.27 per diluted share, for the three months ended September 30, 2015, compared to a net income available to common shareholders of $331,000, or $.25 per diluted share, for the three months ended September 30, 2014.

For the nine months ended September 30, 2015, net income available to common shareholders totaled $999,000, an increase in $408,000, or 69.04% from $591,000 for the same period ended September 30, 2014. Net income per common share increased from $0.45 at September 30, 2014 to $.76 at September 30, 2015.

Net interest income for the three months ended September 30, 2015 and September 30, 2014 was $2.6 million. Non-interest income for the period ended September 30, 2015 was $538,000, compared to $506,000 for the same period ended September 30, 2014.  Non-interest expense for the three months ended September 30, 2015 was $2.6 million compared to $2.4 million for the same period ended September 30, 2014.

For the nine months ended September 30, 2015, net interest income was $7.8 million, compared to net interest income of $7.4 million for the nine months ended September 30, 2014. Non-interest income was $1.5 million and $1.4 million for the nine months ended September 30, 2015 and September 30, 2014, respectively. Non-interest expenses remain constant at $7.8 million for the nine months ended September 30, 2015 and September 30, 2014.

The Company’s unaudited consolidated total assets increased $12.2 million to $330.6 million at September 30, 2015, compared to $318.5 million at December 31, 2014. Net loan balances increased $17.5 million with a balance of $238.9 million at September 30, 2015, compared to $221.4 million at December 31, 2014. The Company’s investment securities decreased $4.0 million to $68.9 million at September 30, 2015, compared to $72.9 million at December 31, 2014. Total deposits have increased $10.3 million to $259.2 million at September 30, 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 September 30, 2015.

Nonperforming assets, which includes nonaccrual loans and other real estate owned (OREO), decreased $1.4 million from $6.4 million at December 31, 2014 to $5.1 million at September 30, 2015. The nonperforming assets consist of $1.3 million in OREO and $3.8 million in nonaccrual loans. For the nine months ended September 30, 2015, there was no expense to the provision for loan losses. The allowance for loan losses at September 30, 2015 totaled $3.4 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 14.99%, tier 1 risk- based capital of 13.74%, common equity tier 1 risked based capital of 13.74%, and a tier 1 leverage ratio of 9.68% at September 30, 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.

Commenting on the third quarter of 2015 results, Mr. Keen, President and CEO, stated, “During the third quarter, KS Bank acquired a team of trust services officers, and their related book of business. Non-reoccurring expenses related to the start-up of trust services reduced earnings during the third quarter. Going forward trust services should be a net contributor to overall income for the company. Off balance sheet assets under management by KS Wealth Management Services at September 30, 2015 were $85 million. The addition of trust services allows KS Bank to more fully build relationships with existing and future customers, and continues to build the value of KS Bancorp.”

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.

/EIN News/ -- 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  
         
    September 30, 2015    December 31,  
    (unaudited)  2014*   
         
    (Dollars in thousands)  
  ASSETS      
         
  Cash and due from banks:      
  Interest-earning $   4,019   $   4,188    
  Noninterest-earning     1,090       1,328    
  Time Deposit     100       100    
  Investment securities available for sale, at fair value     68,879       72,944    
  Federal Home Loan Bank stock, at cost     1,689       1,785    
         
  Loans     242,328       224,912    
  Less allowance for loan losses     (3,434 )     (3,511 )  
  Net loans     238,894       221,401    
         
  Accrued interest receivable     1,064       994    
  Foreclosed real estate and repossessions, net     1,336       2,121    
  Property and equipment, net     8,033       8,161    
  Other assets     5,534       5,429    
         
  Total assets $   330,638   $   318,451    
         
  LIABILITIES AND STOCKHOLDERS' EQUITY      
         
  Liabilities      
  Deposits $   259,234   $   248,915    
  Short-term borrowings     1,881       1,837    
  Long-term borrowings     43,248       43,248    
  Accrued interest payable     261       339    
  Accrued expenses and other liabilities     3,132       2,344    
         
  Total liabilities     307,756       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     21,092       20,171    
  Accumulated other comprehensive income (loss)     183       (10 )  
         
  Total stockholders' equity     22,882       21,768    
         
  Total liabilities and stockholders' equity $   330,638   $   318,451    
         
  *  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,
      2015     2014       2015     2014  
    ( In thousands, except per share data)
Interest and dividend income:          
  Loans $   2,923   $   2,772     $   8,585   $   7,997  
  Investment securities          
  Taxable     317       319         951       954  
  Tax-exempt     57       110         217       351  
  Dividends     19       12         60       36  
  Interest-bearing deposits     1       1         6       2  
  Total interest and dividend income     3,317       3,214         9,819       9,340  
             
Interest expense:          
  Deposits     316       277         934       847  
  Borrowings     357       353         1,082       1,057  
  Total interest expense     673       630         2,016       1,904  
             
  Net interest income     2,644       2,584         7,803       7,436  
             
Provision for loan losses     -       59         -       59  
             
  Net interest income after          
  provision for loan losses     2,644       2,525         7,803       7,377  
             
Noninterest income:          
  Service charges on deposit accounts     318       328         925       941  
  Fees from presold mortgages     34       37         127       129  
  Gain on sale of investments     -       26         -       66  
  Other income     186       115         416       310  
  Total noninterest income     538       506         1,468       1,446  
             
Noninterest expenses:          
  Compensation and benefits     1,633       1,456         4,760       4,486  
  Occupancy and equipment     165       162         502       774  
  Data processing & outside service fees     343       310         980       667  
  Advertising     12       17         40       50  
  Net foreclosed real estate     5       51         31       205  
  Other     475       487         1,489       1,578  
  Total noninterest expenses     2,633       2,483         7,802       7,760  
             
  Income before income taxes     549       548         1,469       1,063  
             
Income tax     199       134         470       259  
             
  Net income     350       414         999       804  
             
  Dividends on preferred stock     -       (75 )       -       (184 )
  Accretion of discount on preferred stock, net     -       (8 )       -       (29 )
  Income available to common stockholders $   350   $   331     $   999   $   591  
             
  Basic and Diluted earnings per share $   0.27   $   0.25     $   0.76   $   0.45  
             

 


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

Primary Logo

Powered by EIN News