KSBI KS Bancorp Inc (PK)

KS Bancorp, Inc. (the �Company�) (OTCBB:KSBI), parent company of KS Bank, Inc., today announced unaudited first quarter net income for the quarter ended March 31, 2008 of $374,000, or $0.29 per diluted share, compared to earnings of $430,000, or $0.33 per diluted share, for the same period in 2007. Net interest income after allowance for loan provision increased 6.20%, or $137,000, to $2.3 million for the quarter ended March 31, 2008 compared to $2.2 million for the three months ended March 31, 2007. Comparing the first quarter 2008 to the same time period in 2007, non interest expense increased by $237,000 from $2.1 million for the quarter ended March 31, 2007 to $2.3 million for the three months ended March 31, 2008. This increase is primarily due to increases in compensation and benefits related to new hires during 2008, as well as normal wage increases. The Company�s consolidated total assets increased $4.1 million, or 1.30%, to $322.4 million during the three months ended March 31, 2008, as compared to $318.3 million at December 31, 2007. Growth in the Company�s total assets resulted primarily from an increase of $1.9 million in net loans to $241.7 million at March 31, 2008 compared to $239.8 at December 31, 2007. Funding for the growth in total assets was provided by a $4.6 million increase in total deposits. Total deposits were $238.1 million at March 31, 2008 compared to $233.5 million at December 31, 2007. Demand deposits increased 5.0% to $72.9 million at March 31, 2008 compared to $69.4 million at December 31, 2007. Commenting on the first quarter 2008 results, Harold Keen, President and CEO, stated, �Early in January when the Federal Reserve reduced rates twice, we knew there would be challenges this year. We feel we have positioned ourselves strategically to lessen our sensitivity to market rate pressures. We are pleased to state at this time we have not experienced major write downs nor charge offs. Additionally, we do not have any exposure to sub prime loans. Overall, we believe that 2008 will be a stable year for our Company.� 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 April 29, 2008, with payment to be made on May 14, 2008. KS Bancorp, Inc. is a Smithfield, North Carolina-based single bank holding company. KS Bank, Inc., (the �Bank�) a state-chartered savings bank, is KS Bancorp�s sole subsidiary. The Bank is a full service community bank offering traditional banking products and services through its operation of eight full service branches located in Kenly, Selma, Clayton, Garner, Goldsboro, Wilson, Wendell, 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 � � � � March 31, December 31, 2008 (unaudited) 2007/a � (Dollars in thousands) ASSETS � Cash and due from banks: Interest-earning $ 6,459 $ 6,298 Noninterest-earning 1,514 1,482 Time Deposit 100 100 Investment securities available for sale, at fair value 54,513 53,624 Federal Home Loan Bank stock, at cost 2,926 2,914 Presold mortgages in process of settlement 545 476 � Loans 244,442 242,535 Less Allowance for loan losses � (2,723 ) � (2,702 ) Net loans 241,719 239,833 � Accrued interest receivable 1,790 1,952 Foreclosed assets, net 939 123 Property and equipment, net 9,219 8,958 Other assets � 2,637 � � 2,509 � � Total assets $ 322,361 � $ 318,269 � � LIABILITIES AND STOCKHOLDERS' EQUITY � Liabilities Deposits $ 238,145 $ 233,480 Short-term borrowings 7,832 10,596 Long-term borrowings 56,048 54,048 Accrued interest payable 616 639 Accounts payable and accrued expenses � 860 � � 821 � � Total liabilities � 303,501 � � 299,584 � � 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 2007 and 2006 1,607 1,607 Retained earnings, substantially restricted 17,339 17,135 Accumulated other comprehensive loss � (86 ) � (57 ) � Total stockholders' equity � 18,860 � � 18,685 � � Total liabilities and stockholders' equity $ 322,361 � $ 318,269 � � /a: Derived from audited financial statements � KS Bancop, Inc and Subsidiary Consolidated Statements of Income (Unaudited) � � � � Three Months Ended March 31, � 2008 � 2007 � (In thousands, except per share data) � Interest and dividend income: Loans $ 4,542 $ 4,481 Investment securties Taxable 309 268 Tax-exempt 338 285 Dividends 45 38 Interest-bearing deposits � 26 � 32 � Total interest and dividend income � 5,260 � 5,104 � � Interest expense: Deposits 2,194 2,107 Borrowings � 683 � 653 � Total interest expense � 2,877 � 2,760 � � Net interest income 2,383 2,344 � Provision for loan losses � 35 � 133 � � Net interest income after provision for loan losses � 2,348 � 2,211 � � Noninterest income: Service charges on deposit accounts 329 289 Fees from presold mortgages 91 88 Other income � 38 � 43 � Total noninterest income � 458 � 420 � � Noninterest expenses: Compensation and benefits 1,495 1,317 Occupancy and Equipment 242 233 Data processing & outside service fees 210 200 Advertising 53 52 Net Foreclosed real estate 23 19 (Gain) on sale of investments - (36 ) Other � 333 � 277 � Total noninterest expenses � 2,356 � 2,062 � � Income before income taxes 450 569 � Income tax expense � 76 � 139 � � Net income $ 374 $ 430 � � Basic and Diluted earnings per share $ 0.29 $ 0.33 � � Dividends per common share $ 0.13 $ 0.13 �