Smithfield, NC – KS Bancorp, Inc. (OTCBB: KSBI), the parent company of KS Bank, Inc. has announced unaudited net income available to common shareholders of $435,000, or $.33 per diluted share, for the three months ended March 31, 2016, compared to a net income available to common shareholders of $322,000, or $.25 per diluted share, for the three months ended March 31, 2015. This represents a 35.0% increase in net income over the previous year.
Net interest income for the three months ended March 31, 2016 was $2.7 million, compared to $2.6 million for the same period in 2015. Non-interest income for the period ended March 31, 2016 was $653,000, compared to $444,000 for the same period ended March 31, 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 March, 31, 2016 was $2.7 million compared to $2.6 million for the same period ended March 31, 2015.
The Company’s unaudited consolidated total assets increased $8.4 million to $345.8 million at March 31, 2016, compared to $337.4 million at December 31, 2015. Net loan balances increased $3.4 million with a balance of $251.0 million at March 31, 2016, compared to $247.6 million at December 31, 2015. The Company’s investment securities decreased $2.4 million to $65.1 million at March 31, 2016, compared to $67.5 million at December 31, 2015. Total deposits have increased $15.6 million to $273.1 million at March 31, 2016, compared to $257.5 million at December 31, 2015. Total stockholders’ equity increased $778,000 from $22.9 million at December 31, 2015, to $23.7 million at March 31, 2016.
Nonperforming assets, which includes nonaccrual loans and other real estate owned (OREO), represents less than 1.0 % of the total assets. The nonperforming assets consist of $619,000 in OREO and $2.5 million in nonaccrual loans. For the three months ended March 31, 2016, $5,000 was expensed to the provision for loan losses. The allowance for loan losses at March 31, 2016 totaled $3.5 million, or 1.40% of all outstanding loans.
KS Bank continues to be well-capitalized according to regulatory standards with total risk based capital of 14.14%, tier 1 risk- based capital of 12.88%, common equity tier 1 risked based capital of 12.88%, and a tier 1 leverage ratio of 9.57% 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.