KS Bancorp, Inc. (KSBI) Announces First Quarter 2008 Financial Results and Cash Dividend

  
    
  
  
    
      KS Bancorp, Inc. (the “Company”) 
      (OTCBB:KSBI), parent company of KS Bank, Inc., today announced unaudited 
      first quarter net income for the quarter ended March 31, 2008 of 
      $374,000, or $0.29 per diluted share, compared to earnings of $430,000, 
      or $0.33 per diluted share, for the same period in 2007.
    
    
      Net interest income after allowance for loan provision increased 6.20%, 
      or $137,000, to $2.3 million for the quarter ended March 31, 2008 
      compared to $2.2 million for the three months ended March 31, 2007. 
      Comparing the first quarter 2008 to the same time period in 2007, non 
      interest expense increased by $237,000 from $2.1 million for the quarter 
      ended March 31, 2007 to $2.3 million for the three months ended March 
      31, 2008. This increase is primarily due to increases in compensation 
      and benefits related to new hires during 2008, as well as normal wage 
      increases.
    
    
      The Company’s consolidated total assets 
      increased $4.1 million, or 1.30%, to $322.4 million during the three 
      months ended March 31, 2008, as compared to $318.3 million at December 
      31, 2007. Growth in the Company’s total assets 
      resulted primarily from an increase of $1.9 million in net loans to 
      $241.7 million at March 31, 2008 compared to $239.8 at December 31, 
      2007. Funding for the growth in total assets was provided by a $4.6 
      million increase in total deposits. Total deposits were $238.1 million 
      at March 31, 2008 compared to $233.5 million at December 31, 2007. 
      Demand deposits increased 5.0% to $72.9 million at March 31, 2008 
      compared to $69.4 million at December 31, 2007.
    
    
      Commenting on the first quarter 2008 results, Harold Keen, President and 
      CEO, stated, “Early in January when the 
      Federal Reserve reduced rates twice, we knew there would be challenges 
      this year. We feel we have positioned ourselves strategically to lessen 
      our sensitivity to market rate pressures. We are pleased to state at 
      this time we have not experienced major write downs nor charge offs. 
      Additionally, we do not have any exposure to sub prime loans. Overall, 
      we believe that 2008 will be a stable year for our Company.”
    
    
      In addition to the earnings report issued today, KS Bancorp, Inc. 
      announced the payment of a quarterly cash dividend of $0.13 per share 
      for stockholders of record on April 29, 2008, with payment to be made on 
      May 14, 2008.
    
    
      KS Bancorp, Inc. is a Smithfield, North Carolina-based single bank 
      holding company. KS Bank, Inc., (the “Bank”) 
      a state-chartered savings bank, is KS Bancorp’s 
      sole subsidiary. The Bank is a full service community bank offering 
      traditional banking products and services through its operation of eight 
      full service branches located in Kenly, Selma, Clayton, Garner, 
      Goldsboro, Wilson, Wendell, and Smithfield, North Carolina.
    
    
      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
        
      
      
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
          
            March 31,
          
        
        
        
        
          
            December 31,
          
        
      
      
        
        
        
        
        
        
        
          
            2008
          
          
            (unaudited)
          
        
        
        
        
          
            2007/a
          
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
          (Dollars in thousands)
        
      
      
        
        
        
          ASSETS
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Cash and due from banks:
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Interest-earning
        
        
        
        
          $
        
        
          6,459
        
        
        
        
        
        
          $
        
        
          6,298
        
        
        
      
      
        
        
        
          Noninterest-earning
        
        
        
        
        
        
          1,514
        
        
        
        
        
        
        
        
          1,482
        
        
        
      
      
        
        
        
          Time Deposit
        
        
        
        
        
        
          100
        
        
        
        
        
        
        
        
          100
        
        
        
      
      
        
        
        
          Investment securities available for sale, at fair value
        
        
        
        
        
        
          54,513
        
        
        
        
        
        
        
        
          53,624
        
        
        
      
      
        
        
        
          Federal Home Loan Bank stock, at cost
        
        
        
        
        
        
          2,926
        
        
        
        
        
        
        
        
          2,914
        
        
        
      
      
        
        
        
          Presold mortgages in process of settlement
        
        
        
        
        
        
          545
        
        
        
        
        
        
        
        
          476
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Loans
        
        
        
        
        
        
          244,442
        
        
        
        
        
        
        
        
          242,535
        
        
        
      
      
        
        
        
          Less Allowance for loan losses
        
        
        
        
           
        
        
          (2,723
        
        
          )
        
        
        
        
           
        
        
          (2,702
        
        
          )
        
      
      
        
        
        
          Net loans
        
        
        
        
        
        
          241,719
        
        
        
        
        
        
        
        
          239,833
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Accrued interest receivable
        
        
        
        
        
        
          1,790
        
        
        
        
        
        
        
        
          1,952
        
        
        
      
      
        
        
        
          Foreclosed assets, net
        
        
        
        
        
        
          939
        
        
        
        
        
        
        
        
          123
        
        
        
      
      
        
        
        
          Property and equipment, net
        
        
        
        
        
        
          9,219
        
        
        
        
        
        
        
        
          8,958
        
        
        
      
      
        
        
        
          Other assets
        
        
        
        
           
        
        
          2,637
        
        
           
        
        
        
        
           
        
        
          2,509
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Total assets
        
        
        
        
          $
        
        
          322,361
        
        
           
        
        
        
        
          $
        
        
          318,269
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          LIABILITIES AND STOCKHOLDERS' EQUITY
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Liabilities
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Deposits
        
        
        
        
          $
        
        
          238,145
        
        
        
        
        
        
          $
        
        
          233,480
        
        
        
      
      
        
        
        
          Short-term borrowings
        
        
        
        
        
        
          7,832
        
        
        
        
        
        
        
        
          10,596
        
        
        
      
      
        
        
        
          Long-term borrowings
        
        
        
        
        
        
          56,048
        
        
        
        
        
        
        
        
          54,048
        
        
        
      
      
        
        
        
          Accrued interest payable
        
        
        
        
        
        
          616
        
        
        
        
        
        
        
        
          639
        
        
        
      
      
        
        
        
          Accounts payable and accrued expenses
        
        
        
        
           
        
        
          860
        
        
           
        
        
        
        
           
        
        
          821
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Total liabilities
        
        
        
        
           
        
        
          303,501
        
        
           
        
        
        
        
           
        
        
          299,584
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Stockholder's Equity:
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Preferred stock, no par value, 5,000,000 shares authorized; no 
          shares issued and outstanding
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          $
        
        
          -
        
        
        
        
        
        
          $
        
        
          -
        
        
        
      
      
        
        
        
          Common stock, no par value, authorized 20,000,000 shares; 1,309,501 
          shares issued and outstanding in 2007 and 2006
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
          1,607
        
        
        
        
        
        
        
        
          1,607
        
        
        
      
      
        
        
        
          Retained earnings, substantially restricted
        
        
        
        
        
        
          17,339
        
        
        
        
        
        
        
        
          17,135
        
        
        
      
      
        
        
        
          Accumulated other comprehensive loss
        
        
        
        
           
        
        
          (86
        
        
          )
        
        
        
        
           
        
        
          (57
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Total stockholders' equity
        
        
        
        
           
        
        
          18,860
        
        
           
        
        
        
        
           
        
        
          18,685
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Total liabilities and stockholders' equity
        
        
        
        
          $
        
        
          322,361
        
        
           
        
        
        
        
          $
        
        
          318,269
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          
            /a: Derived from audited financial statements
          
        
      
    
    
      
        
           
        
        
          KS Bancop, Inc and Subsidiary
        
      
      
        
        
        
          Consolidated Statements of Income (Unaudited)
        
      
      
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
          Three Months Ended
        
      
      
        
        
        
        
        
        
        
        
        
          March 31,
        
      
      
        
        
        
        
        
        
        
        
        
           
        
        
          2008
        
        
        
        
           
        
        
          2007
        
        
           
        
      
      
        
        
        
        
        
        
        
          (In thousands, except per share data)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Interest and dividend income:
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Loans
        
        
        
        
          $
        
        
          4,542
        
        
        
        
          $
        
        
          4,481
        
        
        
      
      
        
        
        
        
        
          Investment securties
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Taxable
        
        
        
        
        
        
          309
        
        
        
        
        
        
          268
        
        
        
      
      
        
        
        
        
        
          Tax-exempt
        
        
        
        
        
        
          338
        
        
        
        
        
        
          285
        
        
        
      
      
        
        
        
        
        
          Dividends
        
        
        
        
        
        
          45
        
        
        
        
        
        
          38
        
        
        
      
      
        
        
        
        
        
          Interest-bearing deposits
        
        
        
        
           
        
        
          26
        
        
        
        
           
        
        
          32
        
        
           
        
      
      
        
        
        
        
        
          Total interest and dividend income
        
        
        
        
           
        
        
          5,260
        
        
        
        
           
        
        
          5,104
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Interest expense:
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Deposits
        
        
        
        
        
        
          2,194
        
        
        
        
        
        
          2,107
        
        
        
      
      
        
        
        
        
        
          Borrowings
        
        
        
        
           
        
        
          683
        
        
        
        
           
        
        
          653
        
        
           
        
      
      
        
        
        
        
        
          Total interest expense
        
        
        
        
           
        
        
          2,877
        
        
        
        
           
        
        
          2,760
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          Net interest income
        
        
        
        
        
        
          2,383
        
        
        
        
        
        
          2,344
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Provision for loan losses
        
        
        
        
           
        
        
          35
        
        
        
        
           
        
        
          133
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          Net interest income after
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          provision for loan losses
        
        
        
        
           
        
        
          2,348
        
        
        
        
           
        
        
          2,211
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          
            Noninterest income:
          
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Service charges on deposit accounts
        
        
        
        
        
        
          329
        
        
        
        
        
        
          289
        
        
        
      
      
        
        
        
        
        
          Fees from presold mortgages
        
        
        
        
        
        
          91
        
        
        
        
        
        
          88
        
        
        
      
      
        
        
        
        
        
          Other income
        
        
        
        
           
        
        
          38
        
        
        
        
           
        
        
          43
        
        
           
        
      
      
        
        
        
        
        
          Total noninterest income
        
        
        
        
           
        
        
          458
        
        
        
        
           
        
        
          420
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Noninterest expenses:
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          Compensation and benefits
        
        
        
        
        
        
          1,495
        
        
        
        
        
        
          1,317
        
        
        
      
      
        
        
        
        
        
          Occupancy and Equipment
        
        
        
        
        
        
          242
        
        
        
        
        
        
          233
        
        
        
      
      
        
        
        
        
        
          Data processing & outside service fees
        
        
        
        
        
        
          210
        
        
        
        
        
        
          200
        
        
        
      
      
        
        
        
        
        
          Advertising
        
        
        
        
        
        
          53
        
        
        
        
        
        
          52
        
        
        
      
      
        
        
        
        
        
          Net Foreclosed real estate
        
        
        
        
        
        
          23
        
        
        
        
        
        
          19
        
        
        
      
      
        
        
        
        
        
          (Gain) on sale of investments
        
        
        
        
        
        
          -
        
        
        
        
        
        
          (36
        
        
          )
        
      
      
        
        
        
        
        
          Other
        
        
        
        
           
        
        
          333
        
        
        
        
           
        
        
          277
        
        
           
        
      
      
        
        
        
        
        
          Total noninterest expenses
        
        
        
        
           
        
        
          2,356
        
        
        
        
           
        
        
          2,062
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          Income before income taxes
        
        
        
        
        
        
          450
        
        
        
        
        
        
          569
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Income tax expense
        
        
        
        
           
        
        
          76
        
        
        
        
           
        
        
          139
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          Net income
        
        
        
        
          $
        
        
          374
        
        
        
        
          $
        
        
          430
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          Basic and Diluted earnings per share
        
        
        
        
          $
        
        
          0.29
        
        
        
        
          $
        
        
          0.33
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          Dividends per common share
        
        
        
        
          $
        
        
          0.13
        
        
        
        
          $
        
        
          0.13