KS Bancorp, Inc. (the “Company”) (OTCBB: KSBI), parent company
of KS Bank, Inc. (the “Bank”), announced unaudited net income
available to common shareholders of $258,000, or $.20 per diluted
shared, for the three months ended December 31, 2010, compared to a
net loss of ($426,000), or ($.33) per diluted share, for the three
months ended December 31, 2009. The Company reported net income
available to common shareholders of $940,000, or $.72, per diluted
share for the twelve months ended December 31, 2010, compared to a
net loss of ($286,000), or ($.22) per diluted share, for the same
period in 2009.
For the twelve months ended December 31, 2010, net interest
income increased 13.1% to $10.5 million, compared to $9.3 million
for the period ended December 31, 2009. The increase is primarily
the result of the increase in net interest margin from 2.99% for
the twelve months ended December 31, 2009, compared to 3.31% for
the same period in 2010. Non-interest income increased $597,000
from $2.1 million for the twelve month period ended December 31,
2009, to $2.7 million for the same period ended December 31, 2010.
The increase is primarily the result of an $856,000 gain on sale of
investments during the twelve months ended December 31, 2010
compared to a $104,000 gain in the same period in 2010. For the
twelve months ended December 31, 2010, non-interest expenses
increased $690,000 to $10.9 million, compared to $10.2 million for
the same period ending December 31, 2009. The increase in
noninterest expenses is primarily attributable to the ongoing
expenses of other real estate owned (OREO).
The Company’s unaudited consolidated total assets decreased
$13.2 million to $335.6 million as of December 31, 2010, as
compared to $348.8 million at December 31, 2009. Net loan balances
decreased $11.8 million from $227.1 million at December 31, 2009,
compared to $215.3 million at December 31, 2010. The Company’s
investment securities remain constant at $87.3 million at December
31, 2009 and December 31, 2010. Total deposits decreased $7.6
million to $251.5 million at December 31, 2010, compared to $259.1
at December 31, 2009. Although total deposits decreased, there has
been a change in the deposit mix. There was an increase of $14.7
million, or 19.7%, in checking, savings and money market accounts
for the twelve months ended December 31, 2010. Time deposits
decreased $22.4 million, or 12.15%, from $184.3 million at December
31, 2009 to $161.9 million at December 31, 2010. Total borrowings
decreased $5.6 million from $65.7 million at December 31, 2009 to
$60.1 million at December 31, 2010. Total stockholders’ equity had
a decrease of $220,000 from $22.3 million at December 31, 2009 to
$22.1 million at December 31, 2010.
Nonperforming assets, which includes nonaccrual loans and OREO,
have increased $348,000 from $15.3 million at December 31, 2009 to
$15.6 million at December 30, 2010. The nonperforming assets
consist of $7.9 million in other real estate owned and $7.7 million
in nonaccrual loans. For the twelve months ended December 31, 2010,
the Company recorded a $1.6 million expense to the provision for
loan losses compared to $2.2 million for the twelve months ended
December 31, 2009. Net charge offs for the 2010 fiscal year were
$1.5 million. The allowance for loan losses at December 31, 2010
totaled $4.0 million, or 1.84% of all outstanding loans.
The Company also announced today that its Board of Directors
voted not to declare a dividend for the fourth quarter of 2010. The
continued suspension of the quarterly dividend is to further the
Company’s efforts to preserve capital in this current economic
environment. The Company’s profitability, capital levels and asset
quality are factors that are 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 15.79%, tier 1 risk-
based capital of 14.53%, and a leverage ratio of 9.26% at December
31, 2010. This is an increase from total risk based capital of
14.14%, tier 1 risk- based capital of 12.88%, and a leverage ratio
of 8.74% at December 31, 2009. The minimum levels to be considered
well capitalized for each of these ratios are 10%, 6%, and 5%,
respectively.
Commenting on the fourth quarter 2010 results, Harold Keen,
President and CEO, stated, “Reflecting on 2010, the economy
continued to present challenges for our customers and new
opportunities for our Bank. Given the current state of the economy,
we are pleased to report positive earnings for the quarter, as well
as for the year. KS Bank remains committed to the success of our
customers and the communities we serve. Looking forward to 2011, a
new year brings new opportunities and challenges, especially in
this economic environment; however, the Board of Directors,
management, and staff will continue to proactively embrace both the
opportunities and challenges during 2011.”
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 December 31, 2010
December 31,
(unaudited) 2009*
(Dollars in thousands)
ASSETS Cash and due from
banks: Interest-earning $ 1,861 $ 3,017 Noninterest-earning 1,428
1,325 Time Deposit 100 100 Investment securities available for
sale, at fair value 87,375 87,272 Federal Home Loan Bank stock, at
cost 2,978 3,019 Presold mortgages in process of settlement 128 -
Loans 219,363 231,089 Less Allowance for loan losses
(4,041 ) (3,942
) Net loans 215,322 227,147 Accrued interest
receivable 1,663 1,825 Foreclosed assets, net 7,889 9,427 Property
and equipment, net 9,151 9,237 Other assets
7,703 6,459
Total assets
$ 335,598
$ 348,828 LIABILITIES
AND STOCKHOLDERS' EQUITY Liabilities Deposits 251,531
259,169 Short-term borrowings 11,886 11,658 Long-term borrowings
48,248 54,048 Accrued interest payable 316 448 Accounts payable and
accrued expenses
1,486
1,154 Total liabilities
313,467 326,477
Stockholder's Equity:
Non-cumulative perpetual preferred stock
(Series A), no par value 4,000 shares authorized, issued and
outstanding
3,822 3,780
Non-cumulative perpetual preferred stock
(Series B), no par value 200 shares authorized, issued and
outstanding
226 232
Common stock, no par value, authorized
20,000,000 shares; 1,309,501 shares issued and outstanding in 2010
and 2009
1,607 1,607 Retained earnings, substantially restricted 17,704
16,765 Accumulated other comprehensive (loss)
(1,228 ) (33
) Total stockholders' equity
22,131 22,351
Total liabilities and stockholders' equity
$
335,598 $ 348,828
* Derived from audited financial statements
KS
Bancorp, Inc and Subsidiary Consolidated Statements of
Income (Unaudited) Three
Months Ended Twelve Months Ended December 31, December 31,
2010
2009
2010
2009
(In thousands, except per share data)
Interest and dividend income: Loans $ 3,291 $ 3,616 $ 13,764
$ 14,447
Investment securities
Taxable 309 435 1,468 1,328 Tax-exempt 450 516 1,867 1,642
Dividends 3 4 12 9 Interest-bearing deposits
1
1 6
6 Total interest and dividend income
4,054 4,572
17,117 17,432
Interest expense: Deposits 933 1,392 4,408 5,811
Borrowings
539 554
2,180 2,314
Total interest expense
1,472
1,946 6,588
8,125 Net interest income 2,582
2,626 10,529 9,307 Provision for loan losses
312 1,135
1,606 2,218
Net interest income after provision for
loan losses
2,270 1,491
8,923 7,089
Noninterest income: Service charges on deposit
accounts 323 331 1,312 1,311 Fees from presold mortgages 64 81 252
454 Gain on sale of investments 26 - 856 104 Other income
75 66
258 212 Total
noninterest income
488
478 2,678
2,081 Noninterest expenses:
Compensation and benefits 1,446 1,404 5,746 5,618 Occupancy and
equipment 260 240 1,047 1,019 Data processing & outside service
fees 209 218 846 844 Advertising 18 20 55 74 Net foreclosed real
estate 176 255 1,071 275 Other
539
635 2,159
2,404 Total noninterest expenses
2,648 2,772
10,924 10,234
Income (loss) before income taxes 110 (803 ) 677 (1,064 )
Income tax benefit
(212 )
(425 ) (516
) (854 ) Net
income (loss)
322
(378 ) 1,193
(210 ) Dividends on
preferred stock (55 ) (40 ) (218 ) (64 ) Accretion of discount on
preferred stock, net
(9 )
(8 ) (35
) (12 ) Income (loss)
available to common stockholders
$ 258
$ (426 )
$ 940 $
(286 ) Basic and Diluted earnings
(loss) per share
$ 0.20
$ (0.33 ) $
0.72 $ (0.22
)
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