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.
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 | ||||||