KS BANCORP, INC
P.O. BOX 661
SMITHFIELD, NC 27577
PRESS RELEASE
Contact: Harold T. Keen
President and Chief Executive Officer
(919) 938-3101
Regina J Smith
Chief Financial Officer
(919) 938-3101
KS Bancorp, Inc. (KSBI) Announces Second Quarter 2016 Financial Results
Smithfield, NC—(Globe Newswire)—July 21, 2016 KS Bancorp, Inc. (the “Company”)
(OTCBB: KSBI), parent company of KS Bank, Inc. (the “Bank”), announced unaudited net
income available to common shareholders of $527,000, or $.40 per diluted share, for the three
months ended June 30, 2016, compared to a net income available to common shareholders of
$327,000, or $.25 per diluted share, for the three months ended June 30, 2015. Included in the
second quarter 2016 earnings, is a one-time gain on the sale of other real estate owned property
(OREO), which increased net earnings by $111,000.
For the six months ended June 30, 2016, net income available to common shareholders totaled
$962,000, a $313,000 increase, or 48.2% from $649,000 for the same period ended June 30,
2015. Net income per common share increased from $.50 at June 30, 2015 to $.73 at June 30,
2016.
Net interest income for the three months ended June 30, 2016 was $2.8 million, compared to
$2.6 million for the same period in 2015. Non-interest income for the period ended June 30,
2016 was $701,000, compared to $486,000 for the same period ended June 30, 2015. The
increase in noninterest income is primarily the result of income from the Trust Services Division,
which was added in July, 2015. Non-interest expense for the three months ended June 30, 2016
remained the same at $2.6 million, as compared to the same period ended June 30, 2015.
The Company’s unaudited consolidated total assets increased $15.0 million to $352.4 million at
June 30, 2016, compared to $337.4 million at December 31, 2015. Net loan balances increased
$4.1 million with a balance of $251.7 million at June 30, 2016, compared to $247.6 million at
December 31, 2015. The Company’s investment securities remained at $67.6 million at June 30,
2016. Total deposits have increased 8.7% or $22.4 million to $279.9 million at June 30, 2016,
compared to $257.5 million at December 31, 2015. Total stockholders’ equity increased $1.7
million from $22.9 million at December 31, 2015 to $24.6 million at June 30, 2016.
Nonperforming assets, which includes nonaccrual loans and OREO, represent less than 1.0 % of
the total assets. The nonperforming assets consist of $206,000 in OREO and $2.1 million in
nonaccrual loans. For the six months ended June 30, 2016, $5,000 was expensed to the provision
for loan losses. The allowance for loan losses at June 30, 2016 totaled $3.5 million, or 1.39% of
all outstanding loans.
Commenting on the second quarter results, Harold T. Keen, President/CEO stated, “We are very
pleased with the second quarter and year-to-date results. During the second quarter, we were
able to take into income a gain on the sale of an OREO property that the bank had held for sale
for a period of time. As the economy continues to improve, the company continues to grow its
loan portfolio while maintaining asset quality. Additionally, the company has seen strong growth
in deposits during the first half of 2016.”
KS Bank continues to be well-capitalized according to regulatory standards with total risk based
capital of 14.18%, tier 1 risk- based capital of 12.92%, common equity tier 1 risked based capital
of 12.92%, and a tier 1 leverage ratio of 9.47% at June 30, 2016. 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.
KS Bancorp, Inc. and Subsidiary
Consolidated Statements of Financial Condition
June 30 2016
(unaudited)
December 31,
2015*
(Dollars in thousands)
ASSETS
Cash and due from banks:
Interest-earning
Noninterest-earning
Time Deposit
Investment securities available for sale, at fair value
Federal Home Loan Bank stock, at cost
Presold mortgages in process of settlement
$
Loans
Less allowance for loan losses
Net loans
$
255,230
(3,551)
251,679
Accrued interest receivable
Foreclosed real estate and repossessions, net
Property and equipment, net
Other assets
Total assets
15,709
1,063
100
67,642
1,749
216
3,839
836
100
67,582
1,991
251,163
(3,535)
247,628
1,055
206
7,885
5,155
1,008
753
8,059
5,638
$
352,459
$
337,434
$
279,956
1,359
43,248
284
3,043
$
257,514
10,687
43,248
272
2,805
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits
Short-term borrowings
Long-term borrowings
Accrued interest payable
Accrued expenses and other liabilities
Total liabilities
327,890
Stockholder's Equity:
Common stock, no par value, authorized 20,000,000 shares;
1,309,501 shares issued and outstanding in 2015 and 2014
Retained earnings, substantially restricted
Accumulated other comprehensive (loss)
Total stockholders' equity
Total liabilities and stockholders' equity
* Derived from audited financial statements
$
314,526
1,607
22,366
596
1,607
21,508
(207)
24,569
22,908
352,459
$
337,434
KS Bancorp, Inc and Subsidiary
Consolidated Statements of Income (Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2016
2015
2016
2015
( In thousands, except per share data)
Interest and dividend income:
Loans
Investment securities
Taxable
Tax-exempt
Dividends
Interest-bearing deposits
Total interest and dividend income
$
Interest expense:
Deposits
Borrowings
Total interest expense
Net interest income
Provision for loan losses
Net interest income after
provision for loan losses
Noninterest income:
Service charges on deposit accounts
Fees from presold mortgages
Gain on sale of investments
Other income
Total noninterest income
Noninterest expenses:
Compensation and benefits
Occupancy and equipment
Data processing & outside service fees
Advertising
Net foreclosed real estate
Other
Total noninterest expenses
Income tax
Basic and Diluted earnings per share
$
2,846
$
6,143
$
5,662
303
44
21
9
3,469
320
75
21
3
3,265
612
91
45
11
6,902
634
160
41
5
6,502
334
362
696
314
355
669
654
731
1,385
618
725
1,343
2,773
2,596
5,517
5,159
-
-
5
-
2,773
2,596
5,512
5,159
332
99
270
701
306
74
106
486
682
132
3
537
1,354
607
93
230
930
1,686
307
198
32
(107)
506
2,622
Income before income taxes
Net income
3,092
1,591
248
232
13
1
534
2,619
3,356
627
401
45
(84)
1,013
5,358
3,127
511
463
28
26
1,014
5,169
852
463
1,508
920
325
136
546
271
$
527
$
327
$
962
$
649
$
0.40
$
0.25
$
0.73
$
0.50