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KS Bancorp, Inc. (KSBI) Announces Second Quarter 2015 Financial Results

20:00 EDT 22 Jul 2015 | Globe Newswire

SMITHFIELD, N.C., July 23, 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 $327,000, or $.25 per diluted share, for the three months ended June 30, 2015, compared to a net income available to common shareholders of $158,000, or $.12 per diluted share, for the three months ended June 30, 2014. This represents an increase in net income of 107.0% in the second quarter of 2015, as compared to the second quarter of 2014.

For the six months ended June 30, 2015, net income available to common shareholders totaled $649,000, an increase in $390,000, or 150.6% from the $259,000 for the same period ended June 30, 2014. Net income per common share increased from $0.20 at June 30, 2014 to $.50 at June 30, 2015.

Net interest income for the three months ended June 30, 2015 was $2.6 million, compared to $2.5 million for the same period in 2014. Non-interest income for the period ended June 30, 2015 was $486,000, compared to $468,000 for the same period ended June 30, 2014. Non-interest expense for the three months ended June 30, 2015 and June 30, 2014 was $2.6 million.

For the six months ended June 30, 2015, net interest income was $5.2 million, compared to net interest income of $4.8 million for the six months ended June 30, 2014. Non-interest income was $930,000 for the six months ended June 30, 2015, compared to $940,000 for the six months ended June 30, 2014. Non-interest expenses remain constant at $5.2 million for the six months ended June 30, 2015 and June 30, 2014.

The Company's unaudited consolidated total assets increased $5.2 million to $323.7 million at June 30, 2015, compared to $318.5 million at December 31, 2014. Net loan balances increased $4.2 million with a balance of $225.6 million at June 30, 2015, compared to $221.4 million at December 31, 2014. The Company's investment securities decreased $1.7 million to $71.2 million at June 30, 2015, compared to $72.9 million at December 31, 2014. Total deposits have increased $5.6 million to $254.5 million at June 30, 2015, compared to $248.9 million at December 31, 2014. Total stockholders' equity increased $405,000 from $21.8 million at December 31, 2014, to $22.2 million at June 30, 2015.

Nonperforming assets, which includes nonaccrual loans and OREO, decreased $2.7 million from $6.4 million at December 31, 2014 to $3.7 million at June 30, 2015. The nonperforming assets consist of $810,000 in OREO and $2.9 million in nonaccrual loans. For the six months ended June 30, 2015, there was no expense to the provision for loan losses. The allowance for loan losses at June 30, 2015 totaled $3.5 million, or 1.53% of all outstanding loans.

KS Bank continues to be well-capitalized according to regulatory standards with total risk based capital of 15.67%, tier 1 risk- based capital of 14.42%, common equity tier 1 risked based capital of 14.42%, and a tier 1 leverage ratio of 9.85% at June 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 second quarter of 2015 results, Mr. Keen, President and CEO, stated, "KS Bank continues to build a conservative balance sheet with increasing profits as compared to recent quarters. Loan and deposit growth continues in spite of the challenges of an extremely low interest rate environment and no relief from regulations passed down from Washington."

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
     
     
  June 30, 2015
(unaudited)
 December 31,
2014* 
     
  (Dollars in thousands)
ASSETS    
     
Cash and due from banks:    
Interest-earning  $ 7,735  $ 4,188
Noninterest-earning  1,166  1,328
Time Deposit  100  100
Investment securities available for sale, at fair value  71,186  72,944
Federal Home Loan Bank stock, at cost  1,771  1,785
Presold mortgages in process of settlement  365  --
     
Loans  229,100  224,912
Less allowance for loan losses  (3,509)  (3,511)
Net loans  225,591  221,401
     
Accrued interest receivable  1,012  994
Foreclosed real estate and repossessions, net  810  2,121
Property and equipment, net  8,118  8,161
Other assets  5,865  5,429
     
Total assets  $ 323,719  $ 318,451
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Liabilities    
Deposits  $ 254,526  $ 248,915
Short-term borrowings  582  1,837
Long-term borrowings  43,248  43,248
Accrued interest payable  261  339
Accrued expenses and other liabilities  2,929  2,344
     
Total liabilities  301,546  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  20,741  20,171
Accumulated other comprehensive (loss)  (175)  (10)
     
 Total stockholders' equity  22,173  21,768
     
 Total liabilities and stockholders' equity  $ 323,719  $ 318,451
     
* Derived from audited financial statements    
 
KS Bancorp, Inc and Subsidiary
Consolidated Statements of Income (Unaudited)
         
  Three Months Ended
June 30,
Six Months Ended
June 30,
  2015 2014 2015 2014
  (In thousands, except per share data)
Interest and dividend income:        
Loans  $ 2,846  $ 2,653  $ 5,662  $ 5,225
Investment securities        
Taxable  320  313  634  635
Tax-exempt  75  114  160  241
Dividends  21  12  41  24
Interest-bearing deposits  3  1  5  2
Total interest and dividend income  3,265  3,093  6,502  6,127
         
Interest expense:        
Deposits  314  276  618  570
Borrowings  355  351  725  704
Total interest expense  669  627  1,343  1,274
         
Net interest income  2,596  2,466  5,159  4,853
         
Provision for loan losses  --  --  --  --
         
Net interest income after provision for loan losses  2,596  2,466  5,159  4,853
         
Noninterest income:        
Service charges on deposit accounts  306  312  607  613
Fees from presold mortgages  74  47  93  92
Gain on sale of investments  --  9  --  40
Other income  106  100  230  195
Total noninterest income  486  468  930  940
         
Noninterest expenses:        
Compensation and benefits  1,591  1,517  3,127  3,030
Occupancy and equipment  74  80  337  342
Data processing & outside service fees  406  399  637  627
Advertising  13  14  28  33
Net foreclosed real estate  1  51  26  154
Other  534  556  1,014  1,091
Total noninterest expenses  2,619  2,617  5,169  5,277
         
Income before income taxes  463  317  920  516
         
Income tax   136  93  271  125
         
Net income   327  224  649  391
         
Dividends on preferred stock  --  (55)  --  (109)
Accretion of discount on preferred stock, net  --  (11)  --  (23)
Income available to common stockholders  $ 327  $ 158  $ 649  $ 259
         
Basic and Diluted earnings per share  $ 0.25  $ 0.12  $ 0.50  $ 0.20
CONTACT: Harold T. Keen
         President and Chief Executive Officer
         (919) 938-3101
         
         Regina J Smith
         Chief Financial Officer
         (919) 938-3101

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