SMITHFIELD, N.C., Jan. 26, 2018 (GLOBE NEWSWIRE) -- KS Bancorp, Inc. (the “Company”) (OTCBB:KSBI), parent company of KS Bank, Inc. (the “Bank”), announced unaudited results for the fourth quarter and full year ending December 31, 2017.
The Company reported net income of $6,000 for the three months ended December 31, 2017, compared to net income of $610,000, or $0.47 per diluted share, for the three months ended December 31, 2016. Included in the fourth quarter 2017 is a one-time non-cash charge of $784,085 recorded as a tax expense related to the enactment of the Tax Cuts and Jobs Acts of 2017, signed into law December 2017. This charge is the result of the remeasurement of the Company’s deferred tax assets arising from a lower US corporate tax rate.
For the twelve months ended December 31, 2017 net income available to common shareholders totaled $2.06 million, or $1.57 per diluted share, compared to net income of $2.10 million, or $1.61 per diluted share, for the period ended December 31, 2016. Excluding the impact of the one-time non-cash charge of $784,085, net income would have been $2.8 million, or $2.17 per diluted share.
Net interest income for the three months ended December 31, 2017 was $3.2 million, compared to $2.9 million for the same period in 2016. Noninterest income for the three months ended December 31, 2017 was $711,000, compared to $739,000 for the same period ended December 31, 2016. For the three months ended December 31, 2017, noninterest expense was $2.8 million compared to $2.7 million for the three months ended December 31, 2016.
For the twelve months ended December 31, 2017, net interest income was $12.2 million, compared to $11.2 million for the twelve months ended December 31, 2016. Noninterest income was unchanged at $2.8 million for the twelve months ended December 31, 2017 and 2016. Noninterest expenses increased slightly to $11.0 million for the twelve months ended December 31, 2017, compared to $10.7 million for the twelve months ended December 31, 2016.
The Company’s unaudited consolidated total assets were $373.6 million at December 31, 2017, up $14.2 million, or 4.0%, compared to $359.4 million at December 31, 2016. Net loan balances were $285.9 million at December 31, 2017, up $19.9 million, or 7.5%, compared to $266.0 million at December 31, 2016. The Company’s investment securities totaled $65.2 million at December 31, 2017, compared to $66.2 million at December 31, 2016. Total deposits were $296.5 million at December 31, 2017, up $10.8 million, or 3.8%, compared to $285.7 million at December 31, 2016. Total stockholders’ equity was $26.3 million at December 31, 2017, an increase of $1.9 million, or 7.8%, compared to $24.4 million at December 31, 2016.
Nonperforming assets have continued to decline and as of December 31, 2017 represented less than 0.50% of the Company’s total assets. Nonperforming assets consist of $618,000 in nonaccrual loans. The Company had no foreclosed real estate owned as of December 31, 2017. The allowance for loan losses at December 31, 2017 totaled $4.1 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 14.02%, tier 1 risk-based capital of 12.77%, common equity tier 1 risk-based capital of 12.77%, and a tier 1 leverage ratio of 9.79% at December 31, 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.
In addition, the Company announced today that its Board of Directors voted to declare an annual dividend based on 2017 earnings of $.17 per share for stockholders of record on January 26, 2018 with payment to be made on February 12, 2018.
Commenting on the year end results, Mr. Keen, President and CEO of the Company and the Bank, stated, “These results represent another successful year for the Company, as we continue to implement management’s plan to maximize shareholder value by increasing income-producing assets, while controlling expenses. Without the one-time tax adjustment, earnings would have been at record levels. We expect reduced tax expense in future periods to more than offset this one-time charge. 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.”
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 loan office in Greenville, NC. In addition, KS Wealth Trust Services 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 | ||||||||
| December 31, 2017 | December 31, | |||||||
| (unaudited) | 2016* | |||||||
| (Dollars in thousands) | ||||||||
| ASSETS | ||||||||
| Cash and due from banks: | ||||||||
| Interest-earning | $ | 4,254 | $ | 8,744 | ||||
| Noninterest-earning | 2,713 | 1,708 | ||||||
| Time Deposit | 100 | 100 | ||||||
| Investment securities available for sale, at fair value | 65,251 | 66,208 | ||||||
| Federal Home Loan Bank stock, at cost | 1,811 | 1,791 | ||||||
| Loans | 290,035 | 269,843 | ||||||
| Less allowance for loan losses | (4,066 | ) | (3,772 | ) | ||||
| Net loans | 285,969 | 266,071 | ||||||
| Accrued interest receivable | 1,127 | 1,086 | ||||||
| Foreclosed real estate and repossessions, net | - | 193 | ||||||
| Property and equipment, net | 7,610 | 7,767 | ||||||
| Other assets | 4,783 | 5,696 | ||||||
| Total assets | $ | 373,618 | $ | 359,364 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Liabilities: | ||||||||
| Deposits | $ | 296,574 | $ | 285,755 | ||||
| Short-term borrowings | 4,103 | 2,790 | ||||||
| Long-term borrowings | 43,248 | 43,248 | ||||||
| Accrued interest payable | 324 | 281 | ||||||
| Accrued expenses and other liabilities | 3,066 | 2,899 | ||||||
| Total liabilities | 347,315 | 334,973 | ||||||
| Stockholder's Equity: | ||||||||
| 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 | 25,415 | 23,513 | ||||||
| Accumulated other comprehensive loss | (719 | ) | (729 | ) | ||||
| Total stockholders' equity | 26,303 | 24,391 | ||||||
| Total liabilities and stockholders' equity | $ | 373,618 | $ | 359,364 | ||||
| * Derived from audited financial statements | ||||||||
| KS Bancorp, Inc and Subsidiary | ||||||||||||||||
| Consolidated Statements of Income (Unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| ( In thousands, except per share data) | ||||||||||||||||
| Interest and dividend income: | ||||||||||||||||
| Loans | $ | 3,669 | $ | 3,200 | $ | 13,825 | $ | 12,516 | ||||||||
| Investment securities | ||||||||||||||||
| Taxable | 281 | 289 | 1,145 | 1,191 | ||||||||||||
| Tax-exempt | 37 | 55 | 177 | 195 | ||||||||||||
| Dividends | 15 | 21 | 85 | 87 | ||||||||||||
| Interest-bearing deposits | 16 | 5 | 46 | 25 | ||||||||||||
| Total interest and dividend income | 4,018 | 3,570 | 15,278 | 14,014 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Deposits | 414 | 334 | 1,517 | 1,320 | ||||||||||||
| Borrowings | 389 | 375 | 1,514 | 1,469 | ||||||||||||
| Total interest expense | 803 | 709 | 3,031 | 2,789 | ||||||||||||
| Net interest income | 3,215 | 2,861 | 12,247 | 11,225 | ||||||||||||
| Provision (recovery) for loan losses | (40 | ) | - | (227 | ) | 5 | ||||||||||
| Net interest income after provision (recovery) for loan losses | 3,255 | 2,861 | 12,474 | 11,220 | ||||||||||||
| Noninterest income: | ||||||||||||||||
| Service charges on deposit accounts | 361 | 338 | 1,406 | 1,364 | ||||||||||||
| Fees from presold mortgages | 31 | 92 | 209 | 311 | ||||||||||||
| Loss on sale of investments | - | - | (4 | ) | (26 | ) | ||||||||||
| Other income | 319 | 309 | 1,178 | 1,133 | ||||||||||||
| Total noninterest income | 711 | 739 | 2,789 | 2,782 | ||||||||||||
| Noninterest expenses: | ||||||||||||||||
| Compensation and benefits | 1,728 | 1,636 | 6,714 | 6,621 | ||||||||||||
| Occupancy and equipment | 336 | 317 | 1,245 | 1,261 | ||||||||||||
| Data processing & outside service fees | 182 | 158 | 785 | 762 | ||||||||||||
| Advertising | 26 | 24 | 78 | 95 | ||||||||||||
| Net foreclosed real estate | 9 | (11 | ) | 68 | (96 | ) | ||||||||||
| Other | 497 | 533 | 2,120 | 2,080 | ||||||||||||
| Total noninterest expenses | 2,778 | 2,657 | 11,010 | 10,723 | ||||||||||||
| Income before income taxes | 1,188 | 943 | 4,253 | 3,279 | ||||||||||||
| Income tax | 1,182 | 333 | 2,194 | 1,170 | ||||||||||||
| Net income | $ | 6 | $ | 610 | $ | 2,059 | $ | 2,109 | ||||||||
| Basic and Diluted earnings per share | $ | - | $ | 0.47 | $ | 1.57 | $ | 1.61 | ||||||||
| Contact: Harold T. Keen. | Regina J Smith |
| President and Chief Executive Officer | Chief Financial Officer |
| (919) 938-3101 | (919) 938-3101 |