KS Bancorp, Inc. (the “Company”) (OTCBB: KSBI), parent company
of KS Bank, Inc. (the “Bank”), today announced unaudited first
quarter financial results for the 2010 fiscal year.
The Company reported a net income of 238,000, or $.18 per
diluted share, before adjusting for the effect of preferred stock
dividends and accretion of discount on preferred stock for the
three months ended March 31, 2010, compared to a net income of
$100,000, or $.08 per diluted share, for the same period in 2009.
After adjusting for $63,000 in dividends and accretion of discount
on preferred stock, the net income available to common stockholders
for the current period was $175,000, or $0.13 per diluted share.
Additionally, the Company also announced today that its Board of
Directors voted not to declare a common stock dividend for the
first quarter of 2010.
For the three months ended March 31, 2010 net interest income
increased $437,000 from $2.2 million at March 31, 2009 to $2.6
million at March 31, 2010. Interest income from investment
securities increased $257,000 at March 31, 2010 compared to the
same period in 2009. Total noninterest income decreased $201,000
from $602,000 at March 31, 2009, compared to $401,000 at March 31,
2010. The reduction in noninterest income is the result of a
decrease in fees received from presold mortgages and a reduction in
the Company’s gain on sale of investments during the first quarter
of 2010, compared to first quarter of 2009.
The Company’s consolidated total assets decreased $2.1 million
to $346.7 million as of March 31, 2010, as compared to $348.8
million at December 31, 2009. Net loan balances have decreased $1.0
million from $227.1 million at December 31, 2009 compared to $226.1
million at March 31, 2010. The Company’s investment securities
decreased $3.7 during the first quarter 2010 from $87.3 million at
December 31, 2009 to $83.6 million at March 31, 2010. Total
deposits increased $3.5 million to $262.7 million at March 31,
2010, compared to $259.2 at December 31, 2009. Total stockholders’
equity increased from $22.4 million at December 31, 2009, to $22.7
million at March 31, 2010.
Nonperforming assets, which includes nonaccrual loans and
foreclosed assets, totaled $15.3 million at March 31, 2010, the
same balance as December 31, 2009. The nonperforming assets consist
of $10.0 million in foreclosure assets and $5.3 million in
nonaccrual loans. During the first quarter 2010, the Company
recorded a $274,000 expense for provision for loan losses, compared
to $430,000 during the first quarter 2009. Net charge offs for the
first quarter 2010 were $265,000. The allowance for loan losses at
March 31, 2010 totaled $3.9 million, or 1.72% of loans.
Commenting on the first quarter 2010 results, Harold Keen,
President and CEO, stated,
“I am pleased to be reporting an improvement in net income for
the first quarter of 2010 compared to the first quarter 2009. In
2010 there will be challenges and opportunities as we continue to
reduce our other real estate owned portfolio. Although the future
remains unpredictable, our local economy appears to be stabilizing.
We continue to focus on strengthening our core banking
relationships with our current clients and developing new banking
relationships by providing exceptional customer service and our
brand of community banking. KS Bank continues to be
well-capitalized according to regulatory standards with total risk
based capital of 14.27%, tier 1 risk- based capital of 13.02% and
leverage ratio of 8.79%. The minimum levels 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. 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 March 31, 2010
December 31,
(unaudited) 2009*
(Dollars in thousands)
ASSETS Cash and due from
banks: Interest-earning $ 3,585 $ 3,017 Noninterest-earning 1,542
1,325 Time Deposit 100 100 Investment securities available for
sale, at fair value 83,623 87,272 Federal Home Loan Bank stock, at
cost 3,334 3,019 Presold mortgages in process of settlement 1,059 -
Loans 230,017 231,089 Less Allowance for loan losses
(3,951 ) (3,942
) Net loans 226,066 227,147 Accrued interest
receivable 1,745 1,825 Foreclosed assets, net 9,955 9,427 Property
and equipment, net 9,186 9,237 Other assets
6,498 6,459
Total assets
$ 346,693
$ 348,828 LIABILITIES
AND STOCKHOLDERS' EQUITY Liabilities Deposits $ 262,714
$ 259,169 Short-term borrowings 8,815 11,658 Long-term borrowings
50,748 54,048 Accrued interest payable 424 448 Accounts payable and
accrued expenses
1,280
1,154 Total liabilities
323,981 326,477
Stockholder's Equity:
Non-cumulative perpetual preferred
stock (Series A), no par value 4,000 shares authorized, issued and
outstanding
$ 3,790 $ 3,780 Non-cumulative perpetual preferred stock (Series
B), no par value 200 shares authorized, issued and outstanding 231
232 Common stock, no par value, authorized 20,000,000 shares;
1,309,501 shares issued and outstanding in 2009 and 2008 1,607
1,607 Retained earnings, substantially restricted 16,940 16,765
Accumulated other comprehensive income (loss)
144 (33 )
Total stockholders' equity
22,712
22,351 Total liabilities and
stockholders' equity
$ 346,693
$ 348,828 * Derived from
audited financial statements
KS Bancorp, Inc and Subsidiary
Consolidated Statements of Income (Unaudited)
Three Months Ended March 31,
2010
2009 ( In thousands, except per share data)
Interest and dividend income: Loans $ 3,507 $ 3,781
Investment securities
Taxable 420 297 Tax-exempt 492 358 Dividends 2 - Interest-bearing
deposits
1 -
Total interest and dividend income
4,422
4,436 Interest expense:
Deposits 1,231 1,637 Borrowings
556
601 Total interest expense
1,787 2,238
Net interest income 2,635 2,198 Provision for loan losses
274 430
Net interest income after provision for loan losses
2,361 1,768
Noninterest income: Service charges on deposit accounts 299
313 Fees from presold mortgages 38 134 Gain on sale of investments
5 104 Other income
59
51 Total noninterest income
401 602
Noninterest expenses: Compensation and benefits 1,492 1,411
Occupancy and equipment 268 261 Data processing & outside
service fees 216 208 Advertising 12 15 Net foreclosed real estate
64 27 Other
530 458
Total noninterest expenses
2,582
2,380 Income (loss) before income
taxes 180 (10 ) Income tax benefit
(58
) (110 ) Net
income
238 100
Dividends on preferred stock (55 ) - Accretion
of discount on preferred stock, net
(8
) - Income available to
common stockholders
$ 175
$ 100 Basic and Diluted
earnings (loss) per share
$ 0.13
$ 0.08
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