KS Bancorp, Inc. (the “Company”) (OTCBB: KSBI), parent company
of KS Bank, Inc. (the “Bank”), reports its unaudited operating
results for the quarter and nine months ended September 30,
2013.
For the three months ended September 30, 2013, net income
available to common shareholders increased 239.6% to $309,000, or
$.24 per diluted share, compared to a net income available to
common shareholders of $91,000, or $.07 per diluted share, for the
three months ended September 30, 2012. For the nine months ended
September 30, 2013, net income available to common shareholders
increased 56.5% to $634,000, or $.48 per diluted share, compared to
$405,000, or $.31 per diluted share, for the nine months ended
September 30, 2012.
Net interest income was $2.4 million for the three months ended
September 30, 2013 and September 30, 2012. Non-interest income for
the three months ended September 30, 2013 was $525,000, compared to
$576,000 for the same period ended September 30, 2012. Non-interest
expenses decreased $529,000 from $2.9 million for the three months
ended September 30, 2012, compared to $2.4 million for the three
months ended September 30, 2013.
For the nine months ended September 30, 2013, net interest
income was $7.1 million, compared to $7.3 million for the nine
months ended September 30, 2012. Non-interest income decreased
slightly from $1.8 million for the nine months ended September 30,
2012 to $1.7 million for the nine months ended September 30, 2013.
Non-interest expenses decreased $903,000 from $8.5 million for the
nine months ended September 30, 2012, to $7.6 million at September
30, 2013. The decrease in expenses is primarily due to the decrease
in costs associated with foreclosed real estate.
In the third quarter of 2013, the Company’s unaudited
consolidated total assets decreased $11.0 million to $303.9 million
at September 30, 2013, compared to $314.9 million at December 31,
2012. Net loan balances decreased $5.7 million with a balance of
$191.2 million at September 30, 2013, compared to $196.9 million at
December 31, 2012. The Company’s investment securities increased
$2.3 million to $84.6 million at September 30, 2013, compared to
$82.3 million at December 31, 2012. Total deposits have decreased
$9.5 million to $234.5 million at September 30, 2013, compared to
$244.0 at December 31, 2012. Total stockholders’ equity at
September 30, 2013 was $24.2 million, compared to $25.3 million at
December 31, 2012.
Nonperforming assets, which includes nonaccrual loans and other
real estate owned (OREO), decreased $3.0 million to $9.1 million at
September 30, 2013 from $12.1 million at December 31, 2012. The
nonperforming assets consist of $4.4 million in OREO and $4.7
million in nonaccrual loans. For the nine months ended September
30, 2013, the Company recorded a $221,000 expense to the provision
for loan losses compared to $125,000 for the nine months ended
September 30, 2012. The allowance for loan losses at September 30,
2013 totaled $3.5 million, or 1.78% of all outstanding loans.
The Company also announced today that its Board of Directors
voted not to declare a dividend for the third 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 17.36%, tier 1 risk-
based capital of 16.10%, and a leverage ratio of 10.09% at
September 30, 2013. The minimum levels to be considered well
capitalized 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 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
Sept 30, 2013 December 31,
(unaudited)
2012* (Dollars in thousands)
ASSETS
Cash and due from banks: Interest-earning $ 4,715 $ 9,474
Noninterest-earning 1,432 2,075 Time Deposit 100 100 Investment
securities available for sale, at fair value 84,589 82,356 Federal
Home Loan Bank stock, at cost 1,953 2,149 Presold mortgages in
process of settlement - 518 Loans 194,707 200,280 Less
allowance for loan losses
(3,464 )
(3,424 ) Net loans 191,243 196,856
Accrued interest receivable 1,113 1,113 Foreclosed real
estate and repossessions, net 4,405 6,637 Property and equipment,
net 8,392 8,579 Other assets
5,989
5,082 Total assets
$
303,931 $ 314,939
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities Deposits $ 234,545 $ 243,996 Short-term borrowings
1,065 2,156 Long-term borrowings 41,248 41,248 Accrued interest
payable 337 233 Accrued expenses and other liabilities
2,517 1,984
Total liabilities
279,712
289,617 Stockholder's Equity: Cumulative
perpetual preferred stock (Series A), no par value 4,000 shares
authorized, issued and outstanding $ 3,952 $ 3,914 Cumulative
perpetual preferred stock (Series B), no par value 200 shares
authorized, issued and outstanding 207 213 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 19,024 18,390 Accumulated other
comprehensive (loss) income
(571 )
1,198 Total stockholders' equity
24,219 25,322
Total liabilities and stockholders' equity
$
303,931 $ 314,939
* Derived from audited financial statements
KS Bancorp, Inc and Subsidiary Consolidated Statements of
Income (Unaudited)
Three Months Ended Nine Months Ended Sept 30, Sept
30,
2013
2012
2013
2012
(In thousands, except per share data)
Interest and dividend income: Loans $ 2,637 $ 2,803 $ 8,013
$ 8,525 Investment securities Taxable 323 357 990 1,088 Tax-exempt
128 159 385 669 Dividends 12 8 26 26 Interest-bearing deposits
2 4
7 7 Total interest
and dividend income
3,102
3,331 9,421
10,315 Interest expense: Deposits
359 511 1,136 1,665 Borrowings
359
421 1,136
1,302 Total interest expense
718 932
2,272 2,967
Net interest income 2,384 2,399 7,149 7,348 Provision for
loan losses
41 (75
) 221
125 Net interest income after provision
for loan losses
2,343
2,474 6,928
7,223 Noninterest income: Service
charges on deposit accounts 330 283 937 831 Fees from presold
mortgages 88 233 420 465 Gain on sale of investments - 8 139 433
Other income
107 52
217 130
Total noninterest income
525
576 1,713
1,859 Noninterest
expenses: Compensation and benefits 1,367 1,531 4,352 4,472
Occupancy and equipment 262 282 775 774 Data processing &
outside service fees 202 193 612 601 Advertising 16 13 32 35 Net
foreclosed real estate 28 408 324 1,091 Other
507 484
1,536 1,561 Total
noninterest expenses
2,382
2,911 7,631
8,534 Income before income taxes 486 139
1,010 548 Income tax (benefit)
111
(17 )
180 (50 )
Net income
375
156 830
598 Dividends on preferred stock (55 )
(55 ) (164 ) (163 ) Accretion of discount on preferred stock, net
(11 ) (10
) (32 )
(30 ) Income available to common
stockholders
$ 309 $
91 $ 634
$ 405 Basic and Diluted
earnings per share
$ 0.24
$ 0.07 $
0.48 $ 0.31
KS Bancorp, Inc.Harold T. Keen, 919-938-3101President and Chief
Executive OfficerorRegina J. Smith, 919-938-3101Chief Financial
Officer
KS Bancorp (PK) (USOTC:KSBI)
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