SMITHFIELD, N.C., July 21, 2016 (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 $527,000, or $.40 per diluted share, for the three months ended June 30, 2016, compared to a net income available to common shareholders of $327,000, or $.25 per diluted share, for the three months ended June 30, 2015. Included in the second quarter 2016 earnings, is a one-time gain on the sale of other real estate owned property (OREO), which increased net earnings by $111,000.
For the six months ended June 30, 2016, net income available to common shareholders totaled $962,000, a $313,000 increase, or 48.2% from $649,000 for the same period ended June 30, 2015. Net income per common share increased from $.50 at June 30, 2015 to $.73 at June 30, 2016.
Net interest income for the three months ended June 30, 2016 was $2.8 million, compared to $2.6 million for the same period in 2015. Non-interest income for the period ended June 30, 2016 was $701,000, compared to $486,000 for the same period ended June 30, 2015. The increase in noninterest income is primarily the result of income from the Trust Services Division, which was added in July, 2015. Non-interest expense for the three months ended June 30, 2016 remained the same at $2.6 million, as compared to the same period ended June 30, 2015.
The Company’s unaudited consolidated total assets increased $15.0 million to $352.4 million at June 30, 2016, compared to $337.4 million at December 31, 2015. Net loan balances increased $4.1 million with a balance of $251.7 million at June 30, 2016, compared to $247.6 million at December 31, 2015. The Company’s investment securities remained at $67.6 million at June 30, 2016. Total deposits have increased 8.7% or $22.4 million to $279.9 million at June 30, 2016, compared to $257.5 million at December 31, 2015. Total stockholders’ equity increased $1.7 million from $22.9 million at December 31, 2015 to $24.6 million at June 30, 2016.
Nonperforming assets, which includes nonaccrual loans and OREO, represent less than 1.0 % of the total assets. The nonperforming assets consist of $206,000 in OREO and $2.1 million in nonaccrual loans. For the six months ended June 30, 2016, $5,000 was expensed to the provision for loan losses. The allowance for loan losses at June 30, 2016 totaled $3.5 million, or 1.39% of all outstanding loans.
Commenting on the second quarter results, Harold T. Keen, President/CEO stated, “We are very pleased with the second quarter and year-to-date results. During the second quarter, we were able to take into income a gain on the sale of an OREO property that the bank had held for sale for a period of time. As the economy continues to improve, the company continues to grow its loan portfolio while maintaining asset quality. Additionally, the company has seen strong growth in deposits during the first half of 2016.”
KS Bank continues to be well-capitalized according to regulatory standards with total risk based capital of 14.18%, tier 1 risk- based capital of 12.92%, common equity tier 1 risked based capital of 12.92%, and a tier 1 leverage ratio of 9.47% at June 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.
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 | ||||||||
| June 30 2016 | December 31, | |||||||
| (unaudited) | 2015* | |||||||
| (Dollars in thousands) | ||||||||
| ASSETS | ||||||||
| Cash and due from banks: | ||||||||
| Interest-earning | $ | 15,709 | $ | 3,839 | ||||
| Noninterest-earning | 1,063 | 836 | ||||||
| Time Deposit | 100 | 100 | ||||||
| Investment securities available for sale, at fair value | 67,642 | 67,582 | ||||||
| Federal Home Loan Bank stock, at cost | 1,749 | 1,991 | ||||||
| Presold mortgages in process of settlement | 216 | – | ||||||
| Loans | 255,230 | 251,163 | ||||||
| Less allowance for loan losses | (3,551 | ) | (3,535 | ) | ||||
| Net loans | 251,679 | 247,628 | ||||||
| Accrued interest receivable | 1,055 | 1,008 | ||||||
| Foreclosed real estate and repossessions, net | 206 | 753 | ||||||
| Property and equipment, net | 7,885 | 8,059 | ||||||
| Other assets | 5,155 | 5,638 | ||||||
| Total assets | $ | 352,459 | $ | 337,434 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Liabilities | ||||||||
| Deposits | $ | 279,956 | $ | 257,514 | ||||
| Short-term borrowings | 1,359 | 10,687 | ||||||
| Long-term borrowings | 43,248 | 43,248 | ||||||
| Accrued interest payable | 284 | 272 | ||||||
| Accrued expenses and other liabilities | 3,043 | 2,805 | ||||||
| Total liabilities | 327,890 | 314,526 | ||||||
| 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 | 22,366 | 21,508 | ||||||
| Accumulated other comprehensive (loss) | 596 | (207 | ) | |||||
| Total stockholders’ equity | 24,569 | 22,908 | ||||||
| Total liabilities and stockholders’ equity | $ | 352,459 | $ | 337,434 | ||||
| * Derived from audited financial statements | ||||||||
| KS Bancorp, Inc and Subsidiary | ||||||||||||||
| Consolidated Statements of Income (Unaudited) | ||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||
| June 30, | June 30, | |||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||
| ( In thousands, except per share data) | ||||||||||||||
| Interest and dividend income: | ||||||||||||||
| Loans | $ | 3,092 | $ | 2,846 | $ | 6,143 | $ | 5,662 | ||||||
| Investment securities | ||||||||||||||
| Taxable | 303 | 320 | 612 | 634 | ||||||||||
| Tax-exempt | 44 | 75 | 91 | 160 | ||||||||||
| Dividends | 21 | 21 | 45 | 41 | ||||||||||
| Interest-bearing deposits | 9 | 3 | 11 | 5 | ||||||||||
| Total interest and dividend income | 3,469 | 3,265 | 6,902 | 6,502 | ||||||||||
| Interest expense: | ||||||||||||||
| Deposits | 334 | 314 | 654 | 618 | ||||||||||
| Borrowings | 362 | 355 | 731 | 725 | ||||||||||
| Total interest expense | 696 | 669 | 1,385 | 1,343 | ||||||||||
| Net interest income | 2,773 | 2,596 | 5,517 | 5,159 | ||||||||||
| Provision for loan losses | – | – | 5 | – | ||||||||||
| Net interest income after | ||||||||||||||
| provision for loan losses | 2,773 | 2,596 | 5,512 | 5,159 | ||||||||||
| Noninterest income: | ||||||||||||||
| Service charges on deposit accounts | 332 | 306 | 682 | 607 | ||||||||||
| Fees from presold mortgages | 99 | 74 | 132 | 93 | ||||||||||
| Gain on sale of investments | – | – | 3 | – | ||||||||||
| Other income | 270 | 106 | 537 | 230 | ||||||||||
| Total noninterest income | 701 | 486 | 1,354 | 930 | ||||||||||
| Noninterest expenses: | ||||||||||||||
| Compensation and benefits | 1,686 | 1,591 | 3,356 | 3,127 | ||||||||||
| Occupancy and equipment | 307 | 248 | 627 | 511 | ||||||||||
| Data processing & outside service fees | 198 | 232 | 401 | 463 | ||||||||||
| Advertising | 32 | 13 | 45 | 28 | ||||||||||
| Net foreclosed real estate | (107 | ) | 1 | (84 | ) | 26 | ||||||||
| Other | 506 | 534 | 1,013 | 1,014 | ||||||||||
| Total noninterest expenses | 2,622 | 2,619 | 5,358 | 5,169 | ||||||||||
| Income before income taxes | 852 | 463 | 1,508 | 920 | ||||||||||
| Income tax | 325 | 136 | 546 | 271 | ||||||||||
| Net income | $ | 527 | $ | 327 | $ | 962 | $ | 649 | ||||||
| Basic and Diluted earnings per share | $ | 0.40 | $ | 0.25 | $ | 0.73 | $ | 0.50 | ||||||
CONTACT: Contact: Harold T. Keen President and Chief Executive Officer (919) 938-3101 Regina J Smith Chief Financial Officer (919) 938-3101