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KS Bancorp, Inc. (KSBI) Announces First Quarter 2011 Financial Results

^{Published on 2011-04-21 12:36:00 - Market Wire}
 

SMITHFIELD, N.C.--([ BUSINESS WIRE ])--KS Bancorp, Inc. (the aCompanya) (OTCBB: KSBI), parent company of KS Bank, Inc. (the aBanka), announced unaudited net income available to common shareholders of $165,000, or $.13 per diluted shared, for the three months ended March 31, 2011, compared to a net income of $175,000, or $.13 per diluted share, for the three months ended March 31, 2010.

For the three months ended March 31, 2011 and March 31, 2010, net interest income was $2.6 million. Non-interest income decreased $93,000 to $308,000 for the period ended March 31, 2011, compared to $401,000 for the same period ended March 31, 2010. Non-interest expenses remain constant at $2.6 million for the three months ended March 31, 2011 and March 31, 2010.

In the first quarter of 2011, the Companya™s unaudited consolidated total assets decreased $450,000 to $335.1 million at March 31, 2011, compared to $335.6 million at December 31, 2010. Net loan balances decreased $2.2 million from $215.3 million at December 31, 2010, to $213.1 million at March 31, 2011. The Companya™s investment securities increased $2.2 million to $89.6 million at March 31, 2011, compared to $87.4 million at December 31, 2010. Total deposits have increased $1.0 million to $252.5 million at March 31, 2011, compared to $251.5 at December 31, 2010. Total borrowings decreased $1.9 million from $60.1 million at December 31, 2010, to $58.2 million at March 31, 2011. Total stockholdersa™ equity increased $269,000 from $22.1 million at December 31, 2010, to $22.4 million at March 31, 2011.

Nonperforming assets, which includes nonaccrual loans and OREO, have increased $2.5 million from $15.6 million at December 31, 2010 to $18.1 million at March 31, 2011. The nonperforming assets consist of $7.7 million in other real estate owned and $10.4 million in nonaccrual loans. For the three months ended March 31, 2011, the Company recorded an $180,000 expense to the provision for loan losses compared to $274,000 for the three months ended March 31, 2010. Net charge offs for the first quarter of 2011 were $247,000, compared to net charge offs of $265,000 for the three months ended March 31, 2010. The allowance for loan losses at March 31, 2011 totaled $4.0 million, or 1.83% 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 2011. The continued suspension of the quarterly dividend is to further the Companya™s efforts to preserve capital. The Companya™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 15.00%, tier 1 risk- based capital of 13.74%, and a leverage ratio of 8.72% at March 31, 2011. The minimum levels to be considered well capitalized for each of these ratios are 10%, 6%, and 5%, respectively.

Commenting on the first quarter 2011 results, Harold Keen, President and CEO, stated, aOur first quarter 2011 results were very similar to the first quarter 2010, and our core banking operation continues to remain solid. We have served our community since 1924, and we remain time tested and financially trusted. Our goal is to continue to focus on strengthening our core banking relationships with our current clients and developing new banking relationships with our brand of community banking.a

KS Bancorp, Inc. is a Smithfield, North Carolina-based single bank holding company. KS Bank, Inc., a state-chartered savings bank, is KS Bancorpa™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 aexpect,a aanticipate,a aestimatea and abelieve,a 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.