KS Bancorp, Inc. (the “Company”) (OTCBB: KSBI), parent company
of KS Bank, Inc. (the “Bank”), announced unaudited net income
available to common shareholders of $228,000, or $.17 per diluted
shared, for the three months ended March 31, 2012, compared to a
net income available to common shareholders of $165,000, or $.13
per diluted share, for the three months ended March 31, 2011.
For the three months ended March 31, 2012, net interest income
was $2.5 million, compared to $2.6 million for the three months
ended March 31, 2011. Non-interest income increased $255,000 to
$563,000 for the period ended March 31, 2012, compared to $308,000
for the same period ended March 31, 2011. The increase in
noninterest income is primarily attributable to $181,000 gain on
sale of investments and a $48,000 increase in fees from presold
mortgages during the three months ended March 31, 2012.
Non-interest expenses remain constant at $2.6 million for the three
months ended March 31, 2012 and March 31, 2011.
In the first quarter of 2012, the Company’s unaudited
consolidated total assets decreased $1.0 million to $321.9 million
at March 31, 2012, compared to $322.9 million at December 31, 2011.
Net loan balances remained constant with a balance of $195.5
million at March 31, 2012 and at December 31, 2011. The Company’s
investment securities decreased $2.7 million to $88.6 million at
March 31, 2012, compared to $91.3 million at December 31, 2011.
Total deposits have increased $2.9 million to $249.4 million at
March 31, 2012, compared to $246.5 at December 31, 2011. Total
borrowings decreased $4.7 million from $50.1 million at December
31, 2011, to $45.4 million at March 31, 2012. During the first
quarter of 2012, the Company repaid borrowings from the Federal
Home Loan Bank totaling $5.0 million. Total stockholders’ equity
increased $268,000 from $24.3 million at December 31, 2011, to
$24.6 million at March 31, 2012.
Nonperforming assets, which includes nonaccrual loans and other
real estate owned (“OREO”), decreased $1.0 million from $19.9
million at December 31, 2011 to $18.9 million at March 31, 2012.
The nonperforming assets consist of $10.5 million in OREO and $8.4
million in nonaccrual loans. For the three months ended March 31,
2012, the Company recorded a $150,000 expense to the provision for
loan losses compared to $180,000 for the three months ended March
31, 2011. Net charge offs for the first quarter of 2012 were
$115,000, compared to net charge offs of $247,000 for the three
months ended March 31, 2011. The allowance for loan losses at March
31, 2012 totaled $3.5 million, or 1.76% of all outstanding
loans.
The Company also announced today that its Board of Directors
voted not to declare a dividend for the first quarter of 2012. 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 15.87%, tier 1 risk-
based capital of 14.61%, and a leverage ratio of 9.00% at March 31,
2012. The minimum levels to be considered well capitalized for each
of these ratios are 10%, 6%, and 5%, respectively.
Commenting on the first quarter 2012 results, Harold Keen,
President and CEO, stated, “First quarter profits exceeded our
first quarter profits in 2011 and were greater than our internal
budget. In February, KS Bank opened a mortgage origination office
in Greenville, NC. The bank recorded start up cost for this new
location during the first quarter; but we believe that the income
from the sale of loans originated in this office should become an
important contributor to earnings during the second quarter. Our
goal is to continue to serve the communities in our market area
with focus on strengthening our core banking relationships. We
remain committed to our current clients and endeavor to develop new
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. 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,
2012 December 31,
(unaudited) 2011*
(Dollars in thousands)
ASSETS Cash and due
from banks: Interest-earning $ 5,312 $ 1,182 Noninterest-earning
1,602 3,929 Time Deposit 100 100 Investment securities available
for sale, at fair value 88,695 91,375 Federal Home Loan Bank stock,
at cost 2,596 2,596 Presold mortgages in process of settlement
1,874 809 Loans 199,109 198,847 Less Allowance for loan
losses
(3,511 )
(3,477 ) Net loans 195,598 195,370
Accrued interest receivable 1,193 1,316 Foreclosed assets, net
10,474 11,696 Property and equipment, net 8,791 8,825 Other assets
5,620 5,734
Total assets
$ 321,855
$ 322,932 LIABILITIES
AND STOCKHOLDERS' EQUITY Liabilities Deposits $ 249,394
$ 246,464 Short-term borrowings 2,692 6,933 Long-term borrowings
42,748 43,248 Accrued interest payable 250 275 Accounts payable and
accrued expenses
2,187
1,696 Total liabilities
297,271 298,616
Stockholder's Equity: Cumulative perpetual preferred stock
(Series A), no par value 4,000 shares authorized, issued and
outstanding $ 3,877 $ 3,866 Cumulative perpetual preferred stock
(Series B), no par value 200 shares authorized, issued and
outstanding 218 219 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
18,087 17,859 Accumulated other comprehensive income
795 765 Total
stockholders' equity
24,584
24,316 Total liabilities and
stockholders' equity
$ 321,855
$ 322,932 * Derived from
audited financial statements
KS Bancorp, Inc and
Subsidiary Consolidated Statements of Income (Unaudited)
Three Months Ended March 31,
2012
2011
( In thousands, except per share data)
Interest and dividend
income: Loans $ 2,863 $ 3,149 Investment securities Taxable 374
327 Tax-exempt 281 444 Dividends 8 6 Interest-bearing deposits
1 1 Total
interest and dividend income
3,527
3,927 Interest expense:
Deposits 598 787 Borrowings
456
509 Total interest expense
1,054 1,296
Net interest income 2,473 2,631 Provision for loan losses
150 180
Net interest income after provision for loan losses
2,323 2,451
Noninterest income: Service charges on deposit accounts 274
297 Fees from presold mortgages 68 20 Gain (Loss) on sale of
investments 181 (45 ) Other income
40
36 Total noninterest income
563 308
Noninterest expenses: Compensation and benefits 1,493 1,470
Occupancy and equipment 251 253 Data processing & outside
service fees 201 211 Advertising 14 18 Net foreclosed real estate
97 107 Other
527 550
Total noninterest expenses
2,583
2,609 Income before income taxes
303 150 Income tax expense (benefit)
11
(79 ) Net income
292 229
Dividends on preferred stock (55 ) (55 ) Accretion of
discount on preferred stock, net
(9
) (9 ) Income
available to common stockholders
$ 228
$ 165 Basic and
Diluted earnings per share
$ 0.17
$ 0.13
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