Smithfield – KS Bancorp, Inc. (OTCBB: KSBI), parent company of KS Bank, Inc. announced Monday unaudited net income of $603,000, or $.46 per diluted share, for the three months ended March 31, 2017, compared to a net income of $435,000, or $.33 per diluted share, for the three months ended March 31, 2016.
Net interest income for the three months ended March 31, 2017 was $2.9 million, compared to $2.7 million for the same period in 2016. Non-interest income for the three months ended March 31, 2017 was $668,000, compared to $653,000 for the same period ended March 31, 2016. Noninterest expense was consistent at $2.7 million for the three months ended both March 31, 2017 and March 31, 2016.
The Company’s unaudited consolidated total assets increased $8.7 million to $368.1 million at March 31, 2017, compared to $359.4 million at December 31, 2016. Net loan balances increased 3.1 million with a balance of $269.1 million March 31, 2017, compared to $266.0 million at December 31, 2016. The Company’s investment securities totaled $65.7 million at March 31, 2017, compared to $66.2 million at December 31, 2016. Total deposits increased 2.7% or $7.6 million to $293.3 million at March 31, 2017, compared to $285.7 million at December 31, 2016. Total stockholders’ equity increased from $24.3 million at December 31, 2016 to $24.9 million at March 31, 2017.
Nonperforming assets, which includes nonaccrual loans and foreclosed real estate, represent less than 1.0% of the total assets. The nonperforming assets consist of $93,000 in foreclosed real estate and $1.5 million in nonaccrual loans. The allowance for loan losses at March 31, 2017 totaled $3.7 million, or 1.37% of all outstanding loans.
KS Bank continues to be well-capitalized according to regulatory standards with total risk- based capital of 14.25%, tier 1 risk- based capital of 13.00%, common equity tier 1 risk- based capital of 13.00%, and a tier 1 leverage ratio of 9.67% at March 31, 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.