KSBI KS Bancorp Inc (PK)

KS Bancorp, Inc. (OTCBB: KSBI), parent company of KS Bank, Inc., reports today financial results for the fourth quarter and year to date periods of the 2006 fiscal year. The Company ended the year with a 29.7% increase in net income over 2005. In addition, the Company grew total assets 9.7% during the year. For the fourth quarter of 2006 consolidated earnings were $557,000, or $.43 per diluted share, compared to earnings of $451,000, or $.34 per diluted share, for the same period in 2005. Year to date net income increased from $1,688,000 at December 31, 2005, to $2,189,000 at December 31, 2006. Earnings during 2006 have increased as a result of the substantial growth in our net interest income, which is a product of both the expansion and repricing of our loan portfolio during the year. This trend, in conjunction with significant growth in various sources of non-interest income, has more than offset increases in total non-interest expenses. For the year ended December 31, 2006, net income per common share was $1.67, a 33.9% increase from $1.24 for the same period of 2005. The Company has continued its growth in consolidated total assets, which increased $25.4 million during the twelve months ended December 31, 2006. Assets grew from $261.4 million at December 31, 2005 to $286.8 million at December 31, 2006. This growth in the Company�s total assets resulted primarily from an increase of $21.0 million in net loans from $193.4 million at December 31, 2005 to $214.4 million December 31, 2006. In addition, investments securities grew 16.4% in 2006. Funding for this asset growth was provided primarily from increases in demand deposits which grew 26.3% from $194.8 million at December 31, 2005 to $213.7 million at December 31, 2006. Total deposits increased to $213.7 million at December 31, 2006 representing an $18.9 million, or 9.7%, increase from $194.8 million at December 31, 2005. Total stockholders� equity increased 10.9%, from $15.6 million at December 31, 2005 to $17.3 million at December 31, 2006. This increase in primarily results from our earnings less dividends paid. Commenting on 2006 results, Harold Keen, President and CEO, stated, �This year has proven to be a stellar year for KS Bank. Our team continues to develop lasting banking relationships which are helping us grow in both deposits and loans. We are proud of the work that our employees have accomplished, and we are thankful for the support of our customers.� In addition to the earnings report issued today, KS Bancorp, Inc. announced the payment of a quarterly cash dividend of $0.13 per share for stockholders of record on January 23, 2006, with payment to be made on February 6, 2007. 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 offering a broad range of banking products and services through its operation of seven full service branches located in Kenly, Selma, Clayton, Garner, Goldsboro, Wilson, and Smithfield, North Carolina. 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 � � December 30, 2006 December 31, 2005(a) (Unaudited) � � (Dollars in thousands) ASSETS Cash and due from banks: Interest-earning $ 2,925� $ 8,411� Noninterest-earning 3,180� 1,358� Time Deposit 100� 100� Investment securities: Available for sale 51,112� 43,904� Federal Home Loan Bank stock, at cost 2,494� 2,512� Presold mortgages in process of settlement 1,313� 885� � Loans 216,822� 195,461� Less Allowance for loan losses � (2,449) � � (2,085) Net loans 214,373� 193,376� � Accrued interest receivable 1,626� 1,354� Foreclosed assets, net 560� 568� Property and equipment, net 7,188� 7,381� Other assets � 1,893� � � 1,589� � TOTAL ASSETS $ 286,764� � $ 261,438� � LIABILITIES AND STOCKHOLDERS' EQUITY � Liabilities: Deposits $ 213,672� $ 194,778� Short-term borrowings 11,352� 5,010� Long-term borrowings 43,048� 44,955� Accrued interest payable 530� 466� Accounts payable and accrued expenses � 851� � � 616� � TOTAL LIABILITIES � 269,453� � � 245,825� � Stockholders' 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 2006 and 2005 1607� 1607� Retained earnings, substantially restricted 15,850� 14,342� Accumulated other comprehensive loss � (146) � � (336) � TOTAL STOCKHOLDERS' EQUITY � 17,311� � � 15,613� TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 286,764� � $ 261,438� � � (a) Derived from audited financial statements KS Bancorp, Inc. and Subsidiary Consolidated Statements of Operations (Unaudited) � Three Months Ended Twelve Months Ended December 31, � December 31, 2006� 2005� 2006� 2005� (Inthousands, except per share data) INTEREST INCOME Loans $ 4,427� $ 3,625� $ 16,492� $ 13,380� Investment securities: Taxable 270� 201� 996� 781� Tax-exempt 255� 232� 967� 882� Dividends 37� 29� 143� 108� Interest-earning deposits 34� � 20� � � 164� � 129� � TOTAL INTEREST INCOME 5,023� � 4,107� � � 18,762� � 15,280� � INTEREST EXPENSE Deposits 2,015� 1,481� 7,219� 5,032� Borrowings 645� � 525� � � 2,148� � 1,726� � TOTAL INTEREST EXPENSE 2,660� � 2,006� � � 9,367� � 6,758� � NET INTEREST INCOME 2,363� 2,101� 9,395� 8,522� � PROVISION FOR LOAN LOSSES 121� � 200� � � 571� � 785� � NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 2,242� � 1,901� � � 8,824� � 7,737� � NON-INTEREST INCOME Service charges on deposit accounts 318� 276� 1,223� 1,027� Fees from presold mortgages 119� 96� 384� 246� Other income 36� � 84� � � 213� � 152� � TOTAL NON-INTEREST INCOME 473� � 456� � � 1,820� � 1,425� � NON-INTEREST EXPENSE Compensation and benefits 1,200� 1,032� 4,689� 4,235� Occupancy and equipment 199� 205� 808� 778� Data processing and outside service fees 197� 177� 756� 681� Advertising 61� 34� 202� 129� Net foreclosed real estate (5) 45� 23� 86� Gain (loss) on sale of investments -� -� 11� -� Other 295� � 247� � � 1,122� � 961� � TOTAL NON-INTEREST EXPENSE 1,947� � 1,740� � � 7,611� � 6,870� � INCOME BEFORE INCOME TAXES 768� 617� 3,033� 2,292� � INCOME TAXES 211� � 166� � � 844� � 604� � NET INCOME $ 557� $ 451� � $ 2,189� $ 1,688� � NET INCOME PER COMMON SHARE Basic $ .43� $ .34� � $ 1.67� $ 1.24� Diluted $ .43� $ .34� � $ 1.67� $ 1.24� � DIVIDENDS PER COMMON SHARE $ .13� $ .13� � $ .52� $ .52�