KS Bancorp, Inc. (the “Company”) (OTCBB: KSBI), parent company of KS Bank, Inc. (the “Bank”), announced unaudited net income available to common shareholders of $101,000, or $.08 per diluted share, for the three months ended March 31, 2014, compared to a net income available to common shareholders of $125,000, or $.10 per diluted share, for the three months ended March 31, 2013.
For the three months ended March 31, 2014 and March 31, 2013 net interest income was $2.4 million. Non-interest income for the period ended March 31, 2014 was $472,000, compared to $640,000 for the same period ended March 31, 2013. The decrease is primarily attributable to the $113,000 decrease in fees from presold mortgages during the three months ended March 31, 2014. Non-interest expenses remain at $2.7 million for the three months ended March 31, 2014 and March 31, 2013.
In the first quarter of 2014, the Company’s unaudited consolidated total assets increased $734,000 to $306.1 million at March 31, 2014, compared to $305.4 million at December 31, 2013. Net loan balances increased $4.5 million with a balance of $198.1 million at March 31, 2014 compared, to $193.6 million at December 31, 2013. The Company’s investment securities decreased $3.7 million to $80.6 million at March 31, 2014, compared to $84.3 million at December 31, 2013. Total deposits have increased $5.4 million to $235.4 million at March 31, 2014, compared to $230.0 at December 31, 2013. Total stockholders’ equity increased $382,000 from $24.3 million at December 31, 2013, to $24.7 million at March 31, 2014.
Nonperforming assets, which includes nonaccrual loans and OREO, increased $207,000 from $7.7 million at December 31, 2013 to $7.9 million at March 31, 2014. The nonperforming assets consist of $3.2 million in OREO and $4.7 million in nonaccrual loans. For the three months ended March 31, 2014, there was no expense to the provision for loan losses compared to $85,000 for the three months ended March 31, 2013. The allowance for loan losses at March 31, 2014 totaled $3.4 million, or 1.68% of all outstanding loans.
The Company also announced today that its Board of Directors voted not to declare a dividend for the first quarter of 2014. The Company’s profitability, capital levels and asset quality are factors that are considered in determining whether to resume dividend payments.
KS Bank continues to be well-capitalized according to regulatory standards with total risk based capital of 17.46%, tier 1 risk- based capital of 16.20%, and a leverage ratio of 10.55% at March 31, 2014. The minimum levels to be considered well capitalized for each of these ratios are 10%, 6%, and 5%, 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 and offers a variety of financial products and services including a securities brokerage service through an affiliation with a registered broker/dealer. 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 | ||||||||
| March 31, 2014 | December 31, | |||||||
| (unaudited) | 2013* | |||||||
| (Dollars in thousands) | ||||||||
| ASSETS | ||||||||
| Cash and due from banks: | ||||||||
| Interest-earning | $ | 5,280 | $ | 5,737 | ||||
| Noninterest-earning | 1,381 | 1,441 | ||||||
| Time Deposit | 100 | 100 | ||||||
| Investment securities available for sale, at fair value | 80,589 | 84,292 | ||||||
| Federal Home Loan Bank stock, at cost | 1,782 | 1,953 | ||||||
| Presold mortgages in process of settlement | 310 | - | ||||||
| Loans | 201,577 | 197,032 | ||||||
| Less allowance for loan losses | (3,390 | ) | (3,390 | ) | ||||
| Net loans | 198,187 | 193,642 | ||||||
| Accrued interest receivable | 1,039 | 1,032 | ||||||
| Foreclosed real estate and repossessions, net | 3,192 | 2,948 | ||||||
| Property and equipment, net | 8,407 | 8,468 | ||||||
| Other assets | 5,862 | 5,782 | ||||||
| Total assets | $ | 306,129 | $ | 305,395 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Liabilities | ||||||||
| Deposits | $ | 235,483 | $ | 230,083 | ||||
| Short-term borrowings | 2,033 | 7,214 | ||||||
| Long-term borrowings | 41,248 | 41,248 | ||||||
| Accrued interest payable | 325 | 329 | ||||||
| Accrued expenses and other liabilities | 2,320 | 2,183 | ||||||
| Total liabilities | 281,409 | 281,057 | ||||||
| Stockholder's Equity: | ||||||||
| Cumulative perpetual preferred stock (Series A), no par value | ||||||||
| 4,000 shares authorized, issued and outstanding | $ | 3,978 | $ | 3,964 | ||||
| Cumulative perpetual preferred stock (Series B), no par value | ||||||||
| 200 shares authorized, issued and outstanding | 203 | 205 | ||||||
| Common stock, no par value, authorized 20,000,000 shares; | ||||||||
| 1,309,501 shares issued and outstanding | 1,607 | 1,607 | ||||||
| Retained earnings, substantially restricted | 19,279 | 19,178 | ||||||
| Accumulated other comprehensive income (loss) | (347 | ) | (616 | ) | ||||
| Total stockholders' equity | 24,720 | 24,338 | ||||||
| Total liabilities and stockholders' equity | $ | 306,129 | $ | 305,395 | ||||
| * Derived from audited financial statements | ||||||||
| KS Bancorp, Inc and Subsidiary | ||||||||
| Consolidated Statements of Income (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
2014 | 2013 | |||||||
| ( In thousands, except per share data) | ||||||||
| Interest and dividend income: | ||||||||
| Loans, including fees | $ | 2,572 | $ | 2,718 | ||||
| Investment securities | ||||||||
| Taxable | 322 | 339 | ||||||
| Tax-exempt | 127 | 130 | ||||||
| Dividends | 12 | 2 | ||||||
| Interest-bearing deposits | 1 | 3 | ||||||
| Total interest and dividend income | 3,034 | 3,192 | ||||||
| Interest expense: | ||||||||
| Deposits | 294 | 406 | ||||||
| Borrowings | 353 | 413 | ||||||
| Total interest expense | 647 | 819 | ||||||
| Net interest income | 2,387 | 2,373 | ||||||
| Provision for loan losses | - | 85 | ||||||
| Net interest income after | ||||||||
| provision for loan losses | 2,387 | 2,288 | ||||||
| Noninterest income: | ||||||||
| Service charges on deposit accounts | 301 | 289 | ||||||
| Fees from presold mortgages | 45 | 158 | ||||||
| Gain on sale of investments | 31 | 139 | ||||||
| Other income | 95 | 54 | ||||||
| Total noninterest income | 472 | 640 | ||||||
| Noninterest expenses: | ||||||||
| Compensation and benefits | 1,513 | 1,527 | ||||||
| Occupancy and equipment | 262 | 254 | ||||||
| Data processing & outside service fees | 228 | 203 | ||||||
| Advertising | 19 | 9 | ||||||
| Foreclosed real estate and repossessions, net | 103 | 200 | ||||||
| Other | 535 | 524 | ||||||
| Total noninterest expenses | 2,660 | 2,717 | ||||||
| Income before income taxes | 199 | 211 | ||||||
| Income tax expense | 32 | 21 | ||||||
| Net income | 167 | 190 | ||||||
| Preferred stock dividends | (55 | ) | (55 | ) | ||||
| Accretion of discount, net | (11 | ) | (10 | ) | ||||
| Income available to common stockholders | $ | 101 | $ | 125 | ||||
| Basic and Diluted earnings per share | $ | 0.08 | $ | 0.10 | ||||
Contacts:
Harold T. Keen
President and Chief Executive
Officer
919-938-3101
or
Regina J. Smith, Chief Financial
Officer
919-938-3101
