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

Regina J Smith
Chief Financial Officer
(919) 938-3101