KS Bancorp, Inc. (the “Company”) (OTCBB: KSBI), parent company
of KS Bank, Inc. (the “Bank”), announced unaudited net income
available to common shareholders of $200,000, or $.15 per diluted
share, for the three months ended June 30, 2013, compared to a net
income available to common shareholders of $86,000, or $.07 per
diluted share, for the three months ended June 30, 2012. For the
six months ended June 30, 2013, the Company reported net income
available to common shareholders of $325,000, or $.25 per diluted
share, compared to $314,000, or $.24 per diluted share, for the six
months ended June 30, 2012.
For the three months ended June 30, 2013, net interest income
was $2.4 million, compared to $2.5 million for the three months
ended June 30, 2012. Non-interest income for the period ended June
30, 2013 was $548,000, compared to $720,000 for the same period
ended June 30, 2012. In the second quarter 2013, the Company did
not realize any gains in the sale of securities, compared to a
$244,000 gain recognized in the linked quarter in 2012.
Non-interest expenses decreased $500,000 from $3.0 million for the
three months ended June 30, 2012, compared to $2.5 million for the
three months ended June 30, 2013.
For the six months ended June 30, 2013, net interest income was
$4.8 million, compared to $4.9 million for the six months ended
June 30, 2012. Non-interest income was $1.2 million for the six
months ended June 30, 2012 and June 30, 2013. Non-interest expenses
decreased $373,000 to $5.2 million for the six months ended June
30, 2013, compared to $5.6 million at June 30, 2012. The decrease
in expenses is primarily due to the decrease costs associated with
foreclosed real estate.
In the second quarter of 2013, the Company’s unaudited
consolidated total assets decreased $4.0 million to $310.9 million
at June 30, 2013, compared to $314.9 million at December 31, 2012.
Net loan balances decreased $6.3 million with a balance of $190.6
million at June 30, 2013, compared to $196.9 million at December
31, 2012. The Company’s investment securities increased $2.7
million to $85.0 million at June 30, 2013, compared to $82.3
million at December 31, 2012. Total deposits have decreased $2.2
million to $241.8 million at June 30, 2013, compared to $244.0 at
December 31, 2012. Total stockholders’ equity at June 30, 2013 was
$24.6 million, compared to $25.3 million at December 31, 2012.
Nonperforming assets, which includes nonaccrual loans and other
real estate owned (OREO) decreased $2.6 million to $9.5 million at
June 30, 2013 from $12.1 million at December 31, 2012. The
nonperforming assets consist of $4.2 million in OREO and $5.3
million in nonaccrual loans. For the six months ended June 30,
2013, the Company recorded an $180,000 expense to the provision for
loan losses compared to $200,000 for the six months ended June 30,
2012. The allowance for loan losses at June 30, 2013 totaled $3.4
million, or 1.77% of all outstanding loans.
The Company also announced today that its Board of Directors
voted not to declare a dividend for the second 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 17.20%, tier 1 risk-
based capital of 15.94%, and a leverage ratio of 9.82% at June 30,
2013. The minimum levels to be considered well capitalized for each
of these ratios are 10%, 6%, and 5%, respectively.
Commenting on the second quarter 2013 results, Harold Keen,
President and CEO, stated, “Our year to date profits exceed the
year to date profits a year ago. Our capital ratio continues to
increase and the Bank remains well capitalized. The Company has
made great progress this year in its continued efforts to reduce
its inventory of nonperforming assets. I am proud of our employees
and the commitment they have to the Bank, as we all continue to
work together to serve the communities in our market area with
focus on strengthening our core banking relationships with our
brand of community banking.”
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
June 30 2013 December 31,
(unaudited) 2012* (Dollars in
thousands)
ASSETS Cash and due from banks:
Interest-earning $ 12,021 $ 9,474 Noninterest-earning 1,607 2,075
Time Deposit 100 100 Investment securities available for sale, at
fair value 85,043 82,356 Federal Home Loan Bank stock, at cost
1,953 2,149 Presold mortgages in process of settlement 590 518
Loans 194,046 200,280 Less allowance for loan losses
(3,428 ) (3,424
) Net loans 190,618 196,856 Accrued interest
receivable 1,090 1,113 Foreclosed real estate and repossessions,
net 4,158 6,637 Property and equipment, net 8,425 8,579 Other
assets
5,363 5,082
Total assets
$ 310,968
$ 314,939
LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities
Deposits $ 241,756 $ 243,996 Short-term borrowings 708 2,156
Long-term borrowings 41,248 41,248 Accrued interest payable 335 233
Accrued expenses and other liabilities
2,331
1,984 Total liabilities
286,378 289,617
Stockholder's Equity: Cumulative perpetual preferred
stock (Series A), no par value 4,000 shares authorized, issued and
outstanding $ 3,939 $ 3,914 Cumulative perpetual preferred stock
(Series B), no par value 200 shares authorized, issued and
outstanding 209 213 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
18,715 18,390 Accumulated other comprehensive income
120 1,198
Total stockholders' equity
24,590
25,322 Total liabilities and
stockholders' equity
$ 310,968
$ 314,939 * Derived from
audited financial statements
KS Bancorp, Inc and Subsidiary
Consolidated Statements of Income (Unaudited)
Three Months Ended
Six Months Ended June 30, June 30,
2013
2012
2013
2012
(In thousands, except per share data)
Interest and dividend income: Loans $ 2,658 $ 2,859 $ 5,376
$ 5,722 Investment securities Taxable 328 357 667 731 Tax-exempt
127 229 257 510 Dividends 12 10 14 18 Interest-bearing deposits
2 2
5 3 Total interest
and dividend income
3,127
3,457 6,319
6,984 Interest expense: Deposits
371 556 777 1,154 Borrowings
364
425 777
881 Total interest expense
735 981
1,554 2,035
Net interest income 2,392 2,476 4,765 4,949 Provision for
loan losses
95 50
180 200
Net interest income after provision for loan losses
2,297 2,426
4,585 4,749
Noninterest income: Service charges on deposit
accounts 318 274 607 548 Fees from presold mortgages 174 164 332
232 Gain on sale of investments - 244 139 425 Other income
56 38
110 78 Total
noninterest income
548
720 1,188
1,283 Noninterest expenses:
Compensation and benefits 1,458 1,448 2,985 2,941 Occupancy and
equipment 259 241 513 492 Data processing & outside service
fees 207 207 410 408 Advertising 7 8 16 22 Net foreclosed real
estate 96 586 296 683 Other
505
549 1,029
1,076 Total noninterest expenses
2,532 3,039
5,249 5,622
Income before income taxes 313 107 524 410 Income tax
(benefit)
48 (44
) 69
(33 ) Net income
265 151
455 443
Dividends on preferred stock (54 ) (55 ) (109 ) (109 ) Accretion of
discount on preferred stock, net
(11
) (10 )
(21 ) (20
) Income available to common stockholders
$ 200 $
86 $ 325
$ 314 Basic and Diluted
earnings per share
$ 0.15
$ 0.07 $
0.25 $ 0.24
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