SMITHFIELD, N.C., Oct. 25, 2017 (GLOBE NEWSWIRE) -- KS Bancorp, Inc. (the “Company”) (OTCBB:KSBI), parent company of KS Bank, Inc. (the “Bank”), announced unaudited results for the third quarter of 2017.

The Company reported net income of $782,000, or $0.60 per diluted share, for the three months ended September 30, 2017, up $245,000, or 45.6 %, compared to a net income of $537,000, or $0.41 per diluted share, for the three months ended September 30, 2016. For the nine months ended September 30, 2017, net income available to common shareholders totaled $2.0 million, or $1.57 per diluted share, up $554,000 or 37.0 %, compared to net income of $1.5 million, or $1.14 per diluted share, for the period ended September 30, 2016.

Commenting on the third quarter 2017 results, Mr. Keen, President and CEO of the Company and the Bank, stated, “These results represent another successful quarter for the Company, as we continue to implement management’s plan to maximize shareholder value by increasing income-producing assets, while controlling expenses. On behalf of the Board of Directors and our management team, I would like to thank our customers and the local communities for their continued support as we look forward to continuing to serve them as their independent community bank of choice.”

Net interest income for the three months ended September 30, 2017 was $3.0 million, compared to $2.8 million for the same period in 2016. Noninterest income for the three months ended September 30, 2017 was $702,000, compared to $689,000 for the same period ended September 30, 2016.  Noninterest expense was $2.8 million for the three months ended September 30, 2017, compared to $2.7 million for the three months ended September 30, 2016.

For the nine months ended September 30, 2017, net interest income was $9.0 million, compared to $8.4 million for the nine months ended September 30, 2016. Noninterest income was unchanged at $2.0 million for the nine months ended September 30, 2016 and 2017. Noninterest expenses increased slightly to $8.2 million for the nine months ended September 30, 2017, compared to $8.1 million for the nine months ended September 30, 2016.   

The Company’s unaudited consolidated total assets were $369.9 million at September 30, 2017, up $10.5 million, or 2.9%, compared to $359.4 million at December 31, 2016. Net loan balances were $283.4 million at September 30, 2017, up $17.4 million, or 6.5%, compared to $266.0 million at December 31, 2016. The Company’s investment securities totaled $60.6 million at September 30, 2017, compared to $66.2 million at December 31, 2016.  Total deposits were $294.9 million at September 30, 2017, up $9.2 million, or 3.2%, compared to $285.7 million at December 31, 2016. Total stockholders’ equity was $26.6 million at September 30, 2017 up $2.2 million or  9.2%, compared to $24.4 million at December 31, 2016.

Nonperforming assets, which includes nonaccrual loans and foreclosed real estate, have continued to decline and as of September 30, 2017 represented less than 0.50% of the Company’s total assets. Nonperforming assets consist of $130,000 in foreclosed real estate and $567,000 in nonaccrual loans. The allowance for loan losses at September 30, 2017 totaled $3.9 million, or 1.35% of all outstanding loans.

Separately, Mr. Keen noted that the Board of Directors of the Company has withdrawn its plan to pursue a Subchapter S reorganization and will instead continue to operate as a C corporation.

KS Bank continues to be well-capitalized according to regulatory standards with total risk-based capital of 14.23%, tier 1 risk-based capital of 12.98%, common equity tier 1 risk-based capital of 12.98%, and a tier 1 leverage ratio of 9.84% at September 30, 2017. The minimum levels to be considered well-capitalized for each of these ratios are 10.0%, 8.0%, 6.5%, and 5.0%, 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. The Bank offers a broad range of personal and business banking products and services, mortgage products and wealth management advisory services. There are nine full service branches located in Kenly, Selma, Clayton, Garner, Goldsboro, Wilson, Wendell, Smithfield, and Four Oaks, North Carolina plus a mortgage servicing location in Greenville, NC. In addition, KS Wealth Management has an office in Asheboro, NC and maintains a presence in Waynesville and Wilmington, 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.               

Contact: Harold T. Keen                          
President and Chief Executive Officer
(919) 938-3101                                   

Regina J Smith
Chief Financial Officer     
(919) 938-3101                                 

KS Bancorp, Inc. and Subsidiary
Consolidated Statements of Financial Condition
			September 30, 2017				December 31,
			(unaudited)				2016*
			(Dollars in thousands)
ASSETS
Cash and due from banks:
Interest-earning			$	8,033			$	8,744
Noninterest-earning				1,566				1,708
Time Deposit				100				100
Investment securities available for sale, at fair value				60,613				66,208
Federal Home Loan Bank stock, at cost				1,811				1,791
Presold mortgages in process of settlement				118				-
Loans				287,334				269,843
Less allowance for loan losses				(3,885	)			(3,772	)
Net loans				283,449				266,071
Accrued interest receivable				1,112				1,086
Foreclosed real estate and repossessions, net				130				193
Property and equipment, net				7,620				7,767
Other assets				5,391				5,696
Total assets			$	369,943			$	359,364
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits			$	294,922			$	285,755
Short-term borrowings				4,254				2,790
Long-term borrowings				40,248				43,248
Accrued interest payable				308				281
Accrued expenses and other liabilities				3,571				2,899
Total liabilities				343,303				334,973
Stockholder's Equity:
Common stock, no par value, authorized 20,000,000 shares;
1,309,501 shares issued and outstanding in 2017 and 2016				1,607				1,607
Retained earnings, substantially restricted				25,408				23,513
Accumulated other comprehensive loss				(375	)			(729	)
Total stockholders' equity				26,640				24,391
Total liabilities and stockholders' equity			$	369,943			$	359,364
*  Derived from audited financial statements

 

KS Bancorp, Inc and Subsidiary
Consolidated Statements of Income (Unaudited)
			Three Months Ended								Nine Months Ended
			September 30,								September 30,
				2017				2016				2017				2016
			( In thousands, except per share data)
Interest and dividend income:
Loans			$	3,515			$	3,173			$	10,156			$	9,316
Investment securities
Taxable				279				290				864				902
Tax-exempt				41				49				140				140
Dividends				22				21				70				66
Interest-bearing deposits				8				9				30				20
Total interest and dividend income				3,865				3,542				11,260				10,444
Interest expense:
Deposits				392				332				1,103				986
Borrowings				378				363				1,125				1,094
Total interest expense				770				695				2,228				2,080
Net interest income				3,095				2,847				9,032				8,364
Provision (recovery) for loan losses				(187	)			-				(187	)			5
Net interest income after
provision (recovery) for loan losses				3,282				2,847				9,219				8,359
Noninterest income:
Service charges on deposit accounts				354				344				1,045				1,026
Fees from presold mortgages				60				87				178				219
Loss on sale of investments				-				(29	)			(4	)			(26	)
Other income				288				287				859				824
Total noninterest income				702				689				2,078				2,043
Noninterest expenses:
Compensation and benefits				1,656				1,629				4,986				4,985
Occupancy and equipment				309				317				909				944
Data processing & outside service fees				203				203				603				604
Advertising				18				26				52				71
Net foreclosed real estate				20				(1	)			59				(85	)
Other				604				534				1,623				1,547
Total noninterest expenses				2,810				2,708				8,232				8,066
Income before income taxes				1,174				828				3,065				2,336
Income tax				392				291				1,012				837
Net income			$	782			$	537			$	2,053			$	1,499
Basic and Diluted earnings per share			$	0.60			$	0.41			$	1.57			$	1.14

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