KS Bancorp, Inc. (KSBI) Announces Third Quarter 2012 Financial Results
KS Bancorp, Inc. (the “Company”) (OTCBB: KSBI), parent company of KS Bank, Inc. (the “Bank”), announced unaudited net income available to common shareholders of $91,000, or $.07 per diluted shared, for the three months ended September 30, 2012, compared to a net loss of ($454,000), or ($.35) per diluted share, for the three months ended September 30, 2011.
The Company reported net income available to common shareholders of $405,000, or $.31 per diluted shared, for the nine months ended September 30, 2012, compared to a net loss attributable to common shareholders of ($34,000), or ($.03) per diluted share, for the nine months ended September 30, 2011.
For the nine months ended September 30, 2012, net interest income was $7.3 million, compared to $7.7 million for the nine months ended September 30, 2011. Noninterest income increased to $1.9 million for the period ended September 30, 2012, compared to $1.0 million for the same period ended September 30, 2011. The increase in noninterest income is primarily attributable to a $433,000 gain on the sale of investments, compared to a loss of ($78,000) for the nine months ended September 30, 2011. Additionally, fees from presold mortgages increased $393,000 during the nine months ended September 30, 2012. Noninterest expenses increased $769,000 to $8.5 million for the nine months ended September 30, 2012, compared to $7.8 million at September 30, 2011. The increase in expenses is primarily due to the costs associated with foreclosed real estate.
The Company's unaudited consolidated total assets decreased $11.3 million to $311.6 million at September 30, 2012, compared to $322.9 million at December 31, 2011. The decrease in the balance sheet is primarily due to a reduction in borrowings and brokered deposits. Total borrowings decreased $6.7 million from $50.1 million at December 31, 2011, to $43.4 million at September 30, 2012. Total deposits have decreased $6.0 million to $240.5 million at September 30, 2012, compared to $246.5 million at December 31, 2011. The decrease in deposits includes an $8.1 million decrease in brokered deposits. Net loan balances decreased $3.4 million with a balance of $192.0 million at September 30, 2012, compared to $195.4 million at December 31, 2011. The Company's investment securities decreased $4.8 million to $86.5 million at September 30, 2012, compared to $91.3 million at December 31, 2011. Total stockholders' equity increased $855,000 from $24.3 million at December 31, 2011, to $25.2 million at September 30, 2012.
Nonperforming assets, which includes nonaccrual loans and other real estate owned (OREO), decreased $5.1 million from $19.9 million at December 31, 2011, to $14.8 million at September 30, 2012. The nonperforming assets consist of $7.4 million in OREO and $7.4 million in nonaccrual loans. Net charge offs for the nine months ended September 30, 2012 were $218,000, compared to net charge offs of $1.0 million for the nine months ended September 30, 2011. The allowance for loan losses at September 30, 2012 totaled $3.4 million, or 1.73% 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 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 federal regulatory standards with total risk based capital of 16.51%, tier 1 risk- based capital of 15.26%, and a leverage ratio of 9.29% at September 30, 2012. 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 servicing location 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|
|September 30, 2012||December 31,|
|(Dollars in thousands)|
|Cash and due from banks:|
|Investment securities available for sale, at fair value||86,580||91,375|
|Federal Home Loan Bank stock, at cost||2,059||2,596|
|Presold mortgages in process of settlement||1,119||809|
|Less Allowance for loan losses||(3,384||)||(3,477||)|
|Accrued interest receivable||1,203||1,316|
|Foreclosed assets, net||7,398||11,696|
|Property and equipment, net||8,734||8,825|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accrued interest payable||237||275|
|Accounts payable and accrued expenses||2,369||1,696|
|Cumulative perpetual preferred stock (Series A), no par value|
|4,000 shares authorized, issued and outstanding||$||3,902||$||3,866|
|Cumulative perpetual preferred stock (Series B), no par value|
|200 shares authorized, issued and outstanding||214||219|
|Common stock, no par value, authorized 20,000,000 shares;|
|1,309,501 shares issued and outstanding in 2010 and 2009||1,607||1,607|
|Retained earnings, substantially restricted||18,264||17,859|
|Accumulated other comprehensive income||1,185||765|
|Total stockholders' equity||25,172||24,316|
|Total liabilities and stockholders' equity||$||311,650||$||322,932|
|* Derived from audited financial statements|
|KS Bancorp, Inc and Subsidiary|
|Consolidated Statements of Income (Loss) (Unaudited)|
|Three Months Ended||Nine Months Ended|
|Sept 30,||Sept 30,|
|( In thousands, except per share data)|
|Interest and dividend income:|
|Total interest and dividend income||3,331||3,698||10,315||11,433|
|Total interest expense||932||1,184||2,967||3,711|
|Net interest income||2,399||2,514||7,348||7,722|
|Provision for loan losses||(75||)||786||125||1,333|
|Net interest income after|
|provision for loan losses||2,474||1,728||7,223||6,389|
|Service charges on deposit accounts||283||299||831||886|
|Fees from presold mortgages||233||26||465||72|
|Gain (Loss) on sale of investments||8||(59||)||433||(78||)|
|Total noninterest income||576||300||1,859||995|
|Compensation and benefits||1,531||1,365||4,472||4,249|
|Occupancy and equipment||282||422||774||750|
|Data processing & outside service fees||193||20||601||601|
|Net foreclosed real estate||408||485||1,091||615|
|Total noninterest expenses||2,911||2,774||8,534||7,765|
|Income (loss) before income taxes||139||(746||)||548||(381||)|
|Income tax expense (benefit)||(17||)||(356||)||(50||)||(539||)|
|Net income (loss)||156||(390||)||598||158|
|Dividends on preferred stock||(55||)||(55||)||(163||)||(164||)|
|Accretion of discount on preferred stock, net||(10||)||(9||)||(30||)||(28||)|
Income available (loss attributable) to
|Basic and Diluted earnings (loss) per share||$||0.07||$||(0.35||)||$||0.31||$||(0.03||)|
KS Bancorp, Inc.
Harold T. Keen, 919-938-3101
President and Chief Executive Officer
Regina J Smith, 919-938-3101
Chief Financial Officer