KS Bancorp, Inc. (the “Company”) (OTCBB:KSBI), parent company of
KS Bank, Inc., (the “Bank’) today reported results for the second
quarter ended June 30, 2009.
Net income for the quarter ended June 30, 2009 was $182,000, or
$0.14 per diluted share, compared to earnings of $399,000, or $0.30
per diluted share, for the same period in 2008. In the second
quarter 2009 the FDIC announced final guidance imposing a special
assessment on insured depository institutions. Earnings for this
quarter reflect the one time expense of $145,000 for this
assessment. Additionally, the Company recorded $114,000 to the
provision for loan losses in the quarter ended June 30, 2009
compared to $18,000 for the quarter ended June 30, 2008.
The Company’s consolidated total assets decreased $4.3 million
to $320.5 million as of June 30, 2009, as compared to $324.8
million at December 31, 2008. Net loan balances have decreased
$12.5 million from $244.3 million at December 31, 2008 to $231.8
million at December 31, 2008. This decrease is primarily the result
of management’s efforts to reduce the Bank’s concentration in
residential construction lending. Investments increased $3.7
million form $54.6 million at December 31, 2008 to $58.3 million at
June 30, 2009. Total deposits were $240.1 million at June 30, 2009
compared to $242.4 at December 31, 2008, which reflects a $2.2
million decrease. The decrease in deposits is primarily due to the
reduction in certificate of deposits. Transaction and savings
accounts have increased $1.7 million during the six months ended
June 30, 2009.
Nonperforming assets which includes nonaccrual loans and
foreclosed assets totaled $15.1 million at June 30, 2009, versus
$8.5 million at December 31, 2008. Year to date the Company has
recorded $544,000 in provision for loan losses. The allowance for
loan losses at June 30, 2009 totaled $3.6 million, or 1.51% of
loans. Nonperforming loans and charge-offs are primarily related to
our residential construction and development portfolio, which has
been and continues to be negatively affected by the slowing housing
market. The Company believes the allowance is adequate to cover any
additional losses.
Commenting on the second quarter 2009 results, Harold Keen,
President and CEO, stated, “Although profits are not were they were
a year ago, we remain profitable. As the current recession and
economic pressures on the housing and real estate market continue
to impact property values in our community and credit quality of
certain borrowers, our staff continues to proactively monitor
delinquencies and to adjust our provision for loan losses
accordingly. Our staff is dedicated to work with our customers to
effectively resolve problem credits and provide relief until market
conditions improve.”
The Company also announced today that its Board of Directors
voted not to declare a dividend for the second quarter of 2009. The
continued suspension of our quarterly dividend is a prudent step in
preserving capital during this continuing economic downturn. The
Board of Directors will continue to monitor business conditions,
the Company’s profitability and capital levels, as well as asset
quality in considering whether to resume cash dividend payments.
The Bank continues to be well-capitalized according to regulatory
guidelines, and we continue to be focused on serving the
communities in which we are located.
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 broker/dealer. There are nine full service branches located
in Kenly, Selma, Clayton, Garner, Goldsboro, Wilson, Wendell,
Smithfield, and Four Oaks, North Carolina. 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, 2009
December 31,
(unaudited)
2008a
(Dollars in thousands)
ASSETS Cash and due
from banks: Interest-earning $ 4,946 $ 3,116 Noninterest-earning
1,414 1,550 Time Deposit 100 100 Investment securities available
for sale, at fair value 58,292 54,588 Federal Home Loan Bank stock,
at cost 2,998 3,008 Presold mortgages in process of settlement
3,296 924 Loans 235,352 248,097 Less Allowance for loan
losses
(3,563 )
(3,753 ) Net loans 231,789 244,344
Accrued interest receivable 1,629 1,672 Foreclosed assets, net
2,839 2,450 Property and equipment, net 9,472 9,665 Other assets
3,773 3,371
Total assets
$ 320,548
$ 324,788 LIABILITIES
AND STOCKHOLDERS' EQUITY Liabilities Deposits $ 240,119
$ 242,366 Short-term borrowings 6,045 5,084 Long-term borrowings
54,048 58,048 Accrued interest payable 440 528 Accounts payable and
accrued expenses
1,572
1,032 Total liabilities
302,224 307,058
Stockholder's Equity: Preferred stock, no par value,
5,000,000 shares authorized;
no shares
issued and outstanding
$ - $ - Common stock, no par value, authorized 20,000,000 shares;
1,309,501 shares issued and
outstanding in 2008 and 2007
1,607 1,607 Retained earnings, substantially restricted 17,320
17,117 Accumulated other comprehensive loss
(603 ) (994
) Total stockholders' equity
18,324 17,730
Total liabilities and stockholders' equity
$
320,548 $ 324,788
a: 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,
2009
2008 2009 2008 (In
thousands, except per share data)
Interest and dividend
income: Loans $ 3,564 $ 4,205 $ 7,345 $ 8,747
Investment securities
Taxable 281 301 578 610 Tax-exempt 363 345 721 683 Dividends - 43 -
88 Interest-bearing deposits
2
8 2 34
Total interest and dividend income
4,210
4,902 8,646
10,162 Interest expense: Deposits 1,443
1,879 3,080 4,073 Borrowings
575
588 1,176
1,271 Total interest expense
2,018
2,467 4,256
5,344 Net interest income 2,192 2,435
4,390 4,818 Provision for loan losses
114 18
544 53 Net interest
income after provision for loan losses
2,078
2,417 3,846
4,765 Noninterest income: Service
charges on deposit accounts 329 350 642 679 Fees from presold
mortgages 153 88 287 179 Gain (Loss) on sale of investments - 13
104 13 Other income
50
43 101
81 Total noninterest income
532
494 1,134
952 Noninterest expenses:
Compensation and benefits 1,422 1,526 2,833 3,021 Occupancy and
equipment 257 241 518 483 Data processing & outside service
fees 209 177 417 387 Advertising 16 39 31 92 Net foreclosed real
estate (21 ) 31 6 54 Other
616
412 1,074
745 Total noninterest expenses
2,499 2,426
4,879 4,782 Income
before income taxes 111 485 101 935 Income tax (benefit)
expense
(71 )
86 (181 )
162 Net income
$ 182
$ 399 $
282 $ 773
Basic and Diluted earnings per share
$
0.14 $ 0.30
$ 0.21 $
0.59 Dividends per common share
$
- $ 0.13
$ 0.06 $
0.26
KS Bancorp (PK) (USOTC:KSBI)
Historical Stock Chart
From Jun 2024 to Jul 2024
KS Bancorp (PK) (USOTC:KSBI)
Historical Stock Chart
From Jul 2023 to Jul 2024