News Column

KS Bancorp Posts 4th Quarter and 2013 Financial Results

February 8, 2014

KS Bancorp, Inc. (KSBI), parent company of KS Bank, Inc., announced its unaudited operating results for the quarter and 12 months ended Dec. 31, 2013.

In a release on Jan. 28, KS Bancorp said that for the three months ended Dec. 31, 2013, net income available to common shareholders was $153,000, or $.12 per diluted share, compared to a net income available to common shareholders of $126,000, or $.10 per diluted share, for the three months ended Dec. 31, 2012.

For the 12 months ended Dec. 31, 2013, net income available to common shareholders was $788,000, or $.60 per diluted share, compared to $531,000, or $.41 per diluted share, for the 12 months ended Dec. 31, 2012.

Net interest income was $2.5 million for the three months ended December 31, 2013 and December 31, 2012. Noninterest income for the three months ended December 31, 2013 was $603,000, compared to $761,000 for the same period ended December 31, 2012. Noninterest expenses decreased $117,000 from $2.9 million for the three months ended December 31, 2012, compared to $2.8 million for the three months ended December 31, 2013.

For the 12 months ended December 31, 2013, net interest income was $9.6 million, compared to $9.8 million for the twelve months ended December 31, 2012. Noninterest income decreased slightly from $2.6 million for the twelve months ended December 31, 2012 to $2.3 million for the twelve months ended December 31, 2013. The decrease in noninterest income is primarily attributable to decreased volume and fee income from presold mortgages. Additionally, the bank's gain on sale of investments decreased $298,000 to $139,000 for the twelve months ended December 31, 2013, compared to gain on sale of investments of $437,000 for the twelve months ended December 31, 2012. Noninterest expenses decreased $1.0 million from $11.5 million for the twelve months ended December 31, 2012, to $10.5 million for the twelve months ended December 31, 2013. The decrease in expenses is primarily due to the decrease in costs associated with foreclosed real estate.

The Company's unaudited consolidated total assets decreased $9.5 million to $305.4 million at December 31, 2013, compared to $314.9 million at December 31, 2012. Net loan balances decreased $3.2 million with a balance of $193.6 million at December 31, 2013, compared to $196.8 million at December 31, 2012. The Company's investment securities increased $1.9 million to $84.3 million at December 31, 2013, compared to $82.4 million at December 31, 2012. Total deposits have decreased $13.9 million to $230.1 million at December 31, 2013, compared to $244.0 at December 31, 2012. The decrease in deposits is the result of $19.5 million decrease in time deposits, which includes a $9.3 million reduction in brokered deposits. The decline in time deposits was partially offset by a $5.6 million increase in savings and demand deposit accounts. Total stockholders' equity at December 31, 2013 was $24.3 million, compared to $25.3 million at December 31, 2012. The decrease in stockholders equity is primarily attributable to the change in accumulated other comprehensive income which represents changes in the market value of the available for sale investment portfolio.

Nonperforming assets, which includes nonaccrual loans and other real estate owned (OREO), decreased $4.5 million to $7.6 million at December 31, 2013 from $12.1 million at December 31, 2012. At December 31, 2013, nonperforming assets consist of $2.9 million in OREO and $4.7 million in nonaccrual loans. For the twelve months ended December 31, 2013, the Company recorded a $161,000 expense to the provision for loan losses compared to $207,000 for the twelve months ended December 31, 2012. The allowance for loan losses at December 31, 2013 totaled $3.4 million, or 1.72 percent of all outstanding loans. This compares to $3.4 million, or 1.71 percent of all outstanding loans at December 31, 2012.

Commenting on the 2013 results, Keen said: "The KS Bank team worked ardently to improve the Bank's net income available to shareholders. One of our goals for 2013 was to continue to reduce nonperforming assets and the bank continues to be successful in attaining this goal. Improvements in net income for 2013 are the result of the bank remaining focused on our employees, and employees committed to servicing our customers and local communities. During 2014, the Bank will be celebrating its 90th anniversary as a trusted community bank and we look forward to continuing to serve our communities and our customers."

The Company also announced that its Board of Directors voted not to declare a dividend for the fourth quarter of 2013. The Company's profitability, capital levels and asset quality are factors that were 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 17.41 percent, tier 1 risk- based capital of 16.15 percent, and a leverage ratio of 10.24 percent at December 30, 2013. The minimum levels to be considered well capitalized for each of these ratios are 10 percent, 6 percent, and 5 percent, respectively.

KS Bancorp is a Smithfield, N.C.-based single bank holding company. The Bank is a full service community bank serving the citizens of eastern North Carolina 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, N.C., a plus a mortgage loan office in Greenville, N.C.

More information:

www.ksbankinc.com

((Comments on this story may be sent to newsdesk@closeupmedia.com))


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Professional Services Close - Up


Story Tools