KS Bancorp, Inc. (the “Company”) (OTCBB: KSBI), parent company
of KS Bank, Inc. (the “Bank”), announced unaudited net income
available to common shareholders of $158,000, or $.12 per diluted
share, for the three months ended June 30, 2014, compared to a net
income available to common shareholders of $200,000, or $.15 per
diluted share, for the three months ended June 30, 2013.
For the six months ended June 30, 2014, the Company reported net
income available to common shareholders of $259,000, or $.20 per
diluted share, compared to $325,000 or $.25 per diluted share, for
the six months ended June 30, 2013. The decline in earnings is
primarily attributable to a decrease in gain on sale of investments
recognized. For the six months ended June 30, 2013, the Company
recognized a $139,000 gain in sale of investments, compared to a
$40,000 gain recognized in the six months ended June 30, 2014.
For the three months ended June 30, 2014, net interest income
was $2.5 million compared to $2.4 million for the three months
ended June 30, 2013. Non-interest income for the three months ended
June 30, 2014 was $468,000, compared to $548,000 for the same
period ended June 30, 2013. The decrease is primarily attributable
to the $127,000 decrease in fees from presold mortgages.
For the six months ended June 30, 2014 and June 30, 2013, net
interest income was $4.8 million. Non-interest income was $940,000
for the six months ended June 30, 2014 compared to $1.2 million for
the six months ended June 30, 2013. The decrease in non-interest
income is primarily attributable to a decrease in fees from presold
mortgages. Non-interest expenses remain constant at $5.2 million
for the six months ended June 30, 2014 and June 30, 2013.
In the second quarter of 2014, the Company’s unaudited
consolidated total assets increased $3.2 million to $308.6 million
at June 30, 2014, compared to $305.4 million at December 31, 2013.
Net loan balances increased $11.5 million with a balance of $205.1
million at June 30, 2014, compared to $193.6 million at December
31, 2013. Funding for the growth in the loan portfolio was provided
by cash flows from the investment portfolio and an increase of core
deposit accounts. The Company’s investment securities decreased
$6.6 million to $77.7 million at June 30, 2014, compared to $84.3
million at December 31, 2013. Total deposits have increased $4.4
million to $234.5 million at June 30, 2014, compared to $230.1 at
December 31, 2013. For the six months ended June 30, 2014,
short-term borrowing decreased $2.2 million to $5.0 million
compared to $7.2 million at December 31, 2013. Total stockholders’
equity increased $676,000 from $24.3 million at December 31, 2013,
to $25.0 million at June 30, 2014.
Nonperforming assets, which includes nonaccrual loans and OREO,
remain at $7.7 million at June 30, 2014. The nonperforming assets
consist of $2.9 million in OREO and $4.8 million in nonaccrual
loans. For the three months ended June 30, 2014, there was no
expense to the provision for loan losses compared to $95,000 for
the three months ended June 30, 2013. The allowance for loan losses
at June 30, 2014 totaled $3.4 million, or 1.62% of all outstanding
loans.
The Company also announced today that its Board of Directors
voted not to declare a dividend for the second 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 16.95%, tier 1 risk-
based capital of 15.70%, and a leverage ratio of 10.48% at June 30,
2014. The minimum levels to be considered well capitalized for each
of these ratios are 10%, 6%, and 5%, respectively.
Commenting on the second quarter of 2014 results, Mr. Keen,
President and CEO, stated, “There has been an increased demand for
loans which is evidence by our 5.85% increase in loans since
December 31, 2013. In addition, we are continuing to grow our core
demand deposit base. This coupled with our loan growth continues to
add value to our balance sheet and our franchise. Also, I am
honored to announce that KS Bank is recognizing its 90th
anniversary this year. KS Bank and its employees remain committed
to our local communities where we live, work, and volunteer.
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 June 30 2014
December 31,
(unaudited) 2013*
(Dollars in thousands)
ASSETS Cash and due from
banks: Interest-earning $ 3,289 $ 5,737 Noninterest-earning 1,727
1,441 Time Deposit 100 100 Investment securities available for
sale, at fair value 77,725 84,292 Federal Home Loan Bank stock, at
cost 1,760 1,953 Presold mortgages in process of settlement 690 -
Loans 208,555 197,032 Less allowance for loan losses
(3,387 ) (3,390
) Net loans 205,168 193,642 Accrued interest
receivable 1,023 1,032 Foreclosed real estate and repossessions,
net 2,935 2,948 Property and equipment, net 8,307 8,468 Other
assets
5,911 5,782
Total assets
$ 308,635
$ 305,395
LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities
Deposits $ 234,522 $ 230,083 Short-term borrowings 5,024 7,214
Long-term borrowings 41,248 41,248 Accrued interest payable 320 329
Accrued expenses and other liabilities
2,507
2,183 Total liabilities
283,621 281,057
Stockholder's Equity: Cumulative perpetual preferred
stock (Series A), no par value 4,000 shares authorized, issued and
outstanding $ 3,991 $ 3,964 Cumulative perpetual preferred stock
(Series B), no par value 200 shares authorized, issued and
outstanding 201 205 Common stock, no par value, authorized
20,000,000 shares; 1,309,501 shares issued and outstanding in 2014
and 2013 1,607 1,607 Retained earnings, substantially restricted
19,437 19,178 Accumulated other comprehensive income
(222 ) (616
) Total stockholders' equity
25,014 24,338
Total liabilities and stockholders' equity
$
308,635 $ 305,395
* 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,
2014
2013
2014
2013
( In thousands, except per share data)
Interest and dividend
income: Loans $ 2,653 $ 2,658 $ 5,376 $ 5,376 Investment
securities
Taxable 313 328 667 667 Tax-exempt 114 127 257 257 Dividends 12 12
14 14 Interest-bearing deposits
1
2 5
5 Total interest and dividend income
3,093 3,127
6,319 6,319
Interest expense: Deposits 276 371 777 777 Borrowings
351 364
777 777 Total
interest expense
627
735 1,554
1,554 Net interest income 2,466 2,392
4,765 4,765 Provision for loan losses
-
95 180
180 Net interest income after
provision for loan losses
2,466
2,297 4,585
4,585 Noninterest income: Service
charges on deposit accounts 312 318 607 607 Fees from presold
mortgages 47 174 332 332 Gain on sale of investments 9 - 139 139
Other income
100 56
110 110
Total noninterest income
468
548 1,188
1,188 Noninterest
expenses: Compensation and benefits 1,517 1,458 2,985 2,985
Occupancy and equipment 80 259 513 513 Data processing &
outside service fees 399 207 410 410 Advertising 14 7 16 16 Net
foreclosed real estate 51 96 296 296 Other
556
505 1,029
1,029 Total noninterest expenses
2,617 2,532
5,249 5,249
Income before income taxes 317 313 524 524 Income tax
(benefit)
93 48
69 69
Net income
224
265 455
455 Dividends on preferred stock (55 )
(54 ) (109 ) (109 ) Accretion of discount on preferred stock, net
(11 ) (11
) (21 )
(21 ) Income available to common
stockholders
$ 158 $
200 $ 325
$ 325 Basic and Diluted
earnings per share
$ 0.12
$ 0.15 $
0.25 $ 0.25
KS Bancorp, Inc.Harold T. Keen, President and Chief Executive
Officer919-938-3101orRegina J. Smith, Chief Financial
Officer919-938-3101
KS Bancorp (PK) (USOTC:KSBI)
Historical Stock Chart
From Jul 2024 to Aug 2024
KS Bancorp (PK) (USOTC:KSBI)
Historical Stock Chart
From Aug 2023 to Aug 2024