KS Bancorp, Inc. (the “Company”) (OTCBB: KSBI), parent company
of KS Bank, Inc. (the “Bank”), reported financial results for the
fourth quarter of 2011.
For the three-month period ended December 31, 2011, the Company
reported unaudited net income available to common shareholders of
$188,000, or $.14 per diluted share, compared to a net income
available to common shareholders of $258,000, or $.20 per diluted
share, for the three months ended December 31, 2010. For the twelve
months ended December 31, 2011, the Company reported net income
available to common shareholders of $154,000, or $.12 per diluted
share, compared to a net income available to common shareholders of
$940,000, or $.72 per diluted share, for the twelve months ended
December 31, 2010.
For the twelve months ended December 31, 2011, net interest
income declined $321,000 to $10.2 million, compared to $10.5
million earned during the twelve months ended December 31, 2010.
Noninterest income reported for the twelve months ended December
31, 2011 was $1.6 million, compared to $2.7 million for the twelve
months ended December 31, 2010. The decrease in noninterest income
is primarily attributable to the $856,000 gain realized on sale of
investments for the twelve months ended December 31, 2010, compared
to a $145,000 gain realized on sale of investments for the twelve
months ended December 31, 2011. Noninterest expenses decreased
$463,000, or 4.2%, to $10.5 million for the twelve months ended
December 31, 2011, compared to $10.9 million for the twelve months
ended December 31, 2010.
The Company’s unaudited consolidated total assets decreased
$12.7 million to $322.9 million at December 31, 2011, compared to
$335.6 million at December 31, 2010. Net loan balances decreased
$19.9 million from $215.3 million at December 31, 2010, to $195.4
million at December 31, 2011. The Company’s investment securities
increased $4.0 million to $91.4 million at December 30, 2011,
compared to $87.4 million at December 31, 2010. Total deposits
decreased $5.1 million to $246.4 million at December 31, 2011,
compared to $251.5 million at December 31, 2010. During the twelve
months ending December 31, 2011, the Company had a combined
increase in savings accounts, demand accounts and money market
accounts of $10.4 million, while certificates of deposit decreased
$15.5 million. Total borrowings decreased $10.0 million from $60.1
million at December 31, 2010, to $50.1 million at December 31,
2011. Total stockholders’ equity increased $2.2 million from $22.1
million at December 31, 2010, to $24.3 million at December 31,
2011. The increase in stockholders equity in primarily attributable
to the change in accumulated other comprehensive income.
Nonperforming assets, which include nonaccrual loans and OREO,
have increased $4.3 million from $15.6 million at December 31, 2010
to $19.9 million at December 30, 2011. The nonperforming assets at
December 31, 2011 consist of $11.7 million in other real estate
owned and $8.2 million in nonaccrual loans. For the twelve months
ended December 31, 2011, the Company recorded $1.5 million in
expense to the provision for loan losses as compared to $1.6
million for the twelve months ended December 31, 2010. Net charge
offs for 2011 were $2.0 million, compared to net charge offs of
$1.5 million in 2010. The allowance for loan losses at December 31,
2011 totaled $3.5 million, or 1.75% 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 2011. The
continued suspension of the quarterly dividend is to further the
Company’s efforts to preserve capital. 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 15.94%, tier 1 risk
based capital of 14.68%, and a leverage ratio of 8.91% at December
31, 2011. 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. 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, 2011
December 31,
(unaudited) 2010*
(Dollars in thousands)
ASSETS Cash and due from
banks: Interest-earning $ 3,929 $ 1,861 Noninterest-earning 1,182
1,428 Time Deposit 100 100 Investment securities available for
sale, at fair value 91,375 87,375 Federal Home Loan Bank stock, at
cost 2,596 2,978 Presold mortgages in process of settlement 809 129
Loans 198,847 219,363 Less Allowance for loan losses
(3,477 ) (4,041
) Net loans 195,370 215,322 Accrued interest
receivable 1,315 1,663 Foreclosed assets, net 11,696 7,889 Property
and equipment, net 8,826 9,151 Other assets
5,734 7,703
Total assets
$ 322,932
$ 335,599 LIABILITIES
AND STOCKHOLDERS' EQUITY Liabilities Deposits $ 246,464
$ 251,531 Short-term borrowings 6,933 11,886 Long-term borrowings
43,248 48,248 Accrued interest payable 275 316 Accounts payable and
accrued expenses
1,696
1,487 Total liabilities
298,616 313,468
Stockholder's Equity: Cumulative perpetual preferred stock
(Series A), no par value 4,000 shares authorized, issued and
outstanding 3,865 3,822 Cumulative perpetual preferred stock
(Series B), no par value 200 shares authorized, issued and
outstanding 220 226 Common stock, no par value, authorized
20,000,000 shares; 1,309,501 shares issued and outstanding in 2011
and 2010 1,607 1,607 Retained earnings, substantially restricted
17,859 17,704 Accumulated other comprehensive income (loss)
765 (1,228 )
Total stockholders' equity
24,316
22,131 Total liabilities and
stockholders' equity
$ 322,932
$ 335,599 * Derived from
audited financial statements
KS Bancorp, Inc and Subsidiary
Consolidated Statements of Income (Unaudited)
Three Months Ended Twelve Months Ended
December 30, December 30,
2011 2010
2011 2010
(In thousands, except per share data)
Interest and dividend income: Loans $ 2,941 $ 3,291 $ 12,128
$ 13,764 Investment securties Taxable 386 309 1,468 1,468
Tax-exempt 292 450 1,434 1,867 Dividends 5 3 23 12 Interest-bearing
deposits
- 1
4 6 Total
interest and dividend income
3,624
4,054 15,057
17,117 Interest expense:
Deposits 658 933 2,876 4,408 Borrowings
480
539 1,973
2,180 Total interest expense
1,138 1,472
4,849 6,588
Net interest income 2,486 2,582 10,208 10,529
Provision for loan losses
150
312 1,483
1,606 Net interest income after
provision for loan losses
2,336
2,270 8,725
8,923 Noninterest income: Service
charges on deposit accounts 283 323 1,169 1,312 Fees from presold
mortgages 47 64 119 252 Gain (Loss) on sale of investments 218 26
140 856 Other income
30
75 145
258 Total noninterest income
578 488
1,573 2,678
Noninterest expenses: Compensation and benefits 1,443 1,446
5,692 5,746 Occupancy and equipment 243 260 993 1,047 Data
processing & outside service fees 194 209 795 846 Advertising
10 18 69 55 Net foreclosed real estate 356 176 971 1,071 Other
450 539
1,941 2,159
Total noninterest expenses
2,696
2,648 10,461
10,924 Income (loss) before income taxes
218 110 (163 ) 677 Income tax benefit
(34 ) (212
) (573 )
(516 ) Net income (loss)
252 322
410 1,193
Dividends on preferred stock (54 ) (55 ) (218 ) (218 ) Accretion of
discount on preferred stock, net
(10
) (9 )
(38 ) (35
) Income (loss) available to common stockholders
$ 188 $
258 $ 154
$ 940 Basic and Diluted
earnings (loss) per share
$ 0.14
$ 0.20 $
0.12 $ 0.72
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