SMITHFIELD, N.C. -- (BUSINESS WIRE) -- KS Bancorp, Inc. (the “Company”) (OTCBB: KSBI), parent company of KS Bank, Inc. (the “Bank”), reports its unaudited operating results for the quarter and nine months ended September 30, 2013.
For the three months ended September 30, 2013, net income available to common shareholders increased 239.6% to $309,000, or $.24 per diluted share, compared to a net income available to common shareholders of $91,000, or $.07 per diluted share, for the three months ended September 30, 2012. For the nine months ended September 30, 2013, net income available to common shareholders increased 56.5% to $634,000, or $.48 per diluted share, compared to $405,000, or $.31 per diluted share, for the nine months ended September 30, 2012.
Net interest income was $2.4 million for the three months ended September 30, 2013 and September 30, 2012. Non-interest income for the three months ended September 30, 2013 was $525,000, compared to $576,000 for the same period ended September 30, 2012. Non-interest expenses decreased $529,000 from $2.9 million for the three months ended September 30, 2012, compared to $2.4 million for the three months ended September 30, 2013.
For the nine months ended September 30, 2013, net interest income was $7.1 million, compared to $7.3 million for the nine months ended September 30, 2012. Non-interest income decreased slightly from $1.8 million for the nine months ended September 30, 2012 to $1.7 million for the nine months ended September 30, 2013. Non-interest expenses decreased $903,000 from $8.5 million for the nine months ended September 30, 2012, to $7.6 million at September 30, 2013. The decrease in expenses is primarily due to the decrease in costs associated with foreclosed real estate.
In the third quarter of 2013, the Company’s unaudited consolidated total assets decreased $11.0 million to $303.9 million at September 30, 2013, compared to $314.9 million at December 31, 2012. Net loan balances decreased $5.7 million with a balance of $191.2 million at September 30, 2013, compared to $196.9 million at December 31, 2012. The Company’s investment securities increased $2.3 million to $84.6 million at September 30, 2013, compared to $82.3 million at December 31, 2012. Total deposits have decreased $9.5 million to $234.5 million at September 30, 2013, compared to $244.0 at December 31, 2012. Total stockholders’ equity at September 30, 2013 was $24.2 million, compared to $25.3 million at December 31, 2012.
Nonperforming assets, which includes nonaccrual loans and other real estate owned (OREO), decreased $3.0 million to $9.1 million at September 30, 2013 from $12.1 million at December 31, 2012. The nonperforming assets consist of $4.4 million in OREO and $4.7 million in nonaccrual loans. For the nine months ended September 30, 2013, the Company recorded a $221,000 expense to the provision for loan losses compared to $125,000 for the nine months ended September 30, 2012. The allowance for loan losses at September 30, 2013 totaled $3.5 million, or 1.78% of all outstanding loans.
The Company also announced today that its Board of Directors voted not to declare a dividend for the third quarter of 2013. The Company’s profitability, capital levels and asset quality are factors that were 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 17.36%, tier 1 risk- based capital of 16.10%, and a leverage ratio of 10.09% at September 30, 2013. 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 loan office 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|
|Sept 30, 2013||December 31,|
|(Dollars in thousands)|
|Cash and due from banks:|
|Investment securities available for sale, at fair value||84,589||82,356|
|Federal Home Loan Bank stock, at cost||1,953||2,149|
|Presold mortgages in process of settlement||-||518|
|Less allowance for loan losses||(3,464||)||(3,424||)|
|Accrued interest receivable||1,113||1,113|
|Foreclosed real estate and repossessions, net||4,405||6,637|
|Property and equipment, net||8,392||8,579|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accrued interest payable||337||233|
|Accrued expenses and other liabilities||2,517||1,984|
|Cumulative perpetual preferred stock (Series A), no par value|
|4,000 shares authorized, issued and outstanding||$||3,952||$||3,914|
|Cumulative perpetual preferred stock (Series B), no par value|
|200 shares authorized, issued and outstanding||207||213|
|Common stock, no par value, authorized 20,000,000 shares;|
|1,309,501 shares issued and outstanding in 2013 and 2012||1,607||1,607|
|Retained earnings, substantially restricted||19,024||18,390|
|Accumulated other comprehensive (loss) income||(571||)||1,198|
|Total stockholders' equity||24,219||25,322|
|Total liabilities and stockholders' equity||$||303,931||$||314,939|
|* Derived from audited financial statements|
|KS Bancorp, Inc and Subsidiary|
|Consolidated Statements of Income (Unaudited)|
|Three Months Ended||Nine Months Ended|
|Sept 30,||Sept 30,|
(In thousands, except per share data)
|Interest and dividend income:|
|Total interest and dividend income||3,102||3,331||9,421||10,315|
|Total interest expense||718||932||2,272||2,967|
|Net interest income||2,384||2,399||7,149||7,348|
|Provision for loan losses||41||(75||)||221||125|
|Net interest income after|
|provision for loan losses||2,343||2,474||6,928||7,223|
|Service charges on deposit accounts||330||283||937||831|
|Fees from presold mortgages||88||233||420||465|
|Gain on sale of investments||-||8||139||433|
|Total noninterest income||525||576||1,713||1,859|
|Compensation and benefits||1,367||1,531||4,352||4,472|
|Occupancy and equipment||262||282||775||774|
|Data processing & outside service fees||202||193||612||601|
|Net foreclosed real estate||28||408||324||1,091|
|Total noninterest expenses||2,382||2,911||7,631||8,534|
|Income before income taxes||486||139||1,010||548|
|Income tax (benefit)||111||(17||)||180||(50||)|
|Dividends on preferred stock||(55||)||(55||)||(164||)||(163||)|
|Accretion of discount on preferred stock, net||(11||)||(10||)||(32||)||(30||)|
|Income available to common stockholders||$||309||$||91||$||634||$||405|
|Basic and Diluted earnings per share||$||0.24||$||0.07||$||0.48||$||0.31|