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

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