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

  
    
  
  
    
      KS Bancorp, Inc. (the “Company”) 
      (OTCBB: KSBI), parent company of KS Bank, Inc., today announced 
      unaudited second quarter financial results for the 2008 fiscal year.
    
    
      Consolidated earnings for the second quarter of 2008 were $399,000, or 
      $0.30 per diluted share, compared to earnings of $238,000, or $0.18 per 
      diluted share, for the same period in 2007. In 2007, the Company 
      repositioned its investment portfolio which attributed to pre-tax losses 
      of $525,000 on the sale of investment securities. Excluding the losses 
      we recorded to restructure our investment portfolio, consolidated 
      earnings for the second quarter of 2007 would have otherwise totaled 
      $540,000, or $0.41 per diluted share (a non-GAAP measure). For the six 
      months ended June 30, 2008, consolidated net income was $773,000, or 
      $.59 per diluted share, compared to $668,000, or $.51 per diluted share, 
      for the six months ended June 30, 2007.
    
    
      The Company’s consolidated total assets have 
      increased to $318.6 million during the six months ended June 31, 2008, 
      as compared to $318.3 million at December 31, 2007. The net loan 
      portfolio as of June 30, 2008 has remained constant at $240.0 million 
      since December 31, 2008. Total deposits have increased to $234.8 million 
      at June 31, 2008 compared to $233.5 million at December 31, 2007.
    
    
      Commenting on the second quarter 2008 results, Harold Keen, President 
      and CEO, stated, “The significant interest 
      rate decreases by the Federal Reserve created a very challenging 
      environment for KS Bancorp. While the second quarter results are not at 
      the level we projected prior to the Federal Reserve rate decreases, they 
      are sufficient to allow us to continue to pay an aggressive dividend and 
      to continue the growth of KS Bancorp.”
    
    
      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 July 29, 2008, with payment to be made on 
      August 13, 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
        
      
      
        
           
        
        
        
        
        
        
           
        
        
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          June 30, 2008
        
        
        
        
          December 31,
        
      
      
        
        
        
        
        
          (unaudited)
        
        
        
        
          
            2007(a)
          
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          (Dollars in thousands)
        
      
      
        
        
        
          ASSETS
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Cash and due from banks:
        
        
        
        
        
        
        
      
      
        
        
        
          Interest-earning
        
        
          $
        
        
          1,634
        
        
        
        
        
        
          $
        
        
          6,298
        
        
        
      
      
        
        
        
          Noninterest-earning
        
        
        
        
          4,377
        
        
        
        
        
        
        
        
          1,482
        
        
        
      
      
        
        
        
          Time Deposit
        
        
        
        
          100
        
        
        
        
        
        
        
        
          100
        
        
        
      
      
        
        
        
          Investment securities available for sale, at fair value
        
        
        
        
          53,775
        
        
        
        
        
        
        
        
          53,624
        
        
        
      
      
        
        
        
          Federal Home Loan Bank stock, at cost
        
        
        
        
          2,949
        
        
        
        
        
        
        
        
          2,914
        
        
        
      
      
        
        
        
          Presold mortgages in process of settlement
        
        
        
        
          -
        
        
        
        
        
        
        
        
          476
        
        
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Loans
        
        
        
        
          242,666
        
        
        
        
        
        
        
        
          242,535
        
        
        
      
      
        
        
        
          Less Allowance for loan losses
        
        
           
        
        
          (2,684
        
        
          )
        
        
        
        
           
        
        
          (2,702
        
        
          )
        
      
      
        
        
        
          Net loans
        
        
        
        
          239,982
        
        
        
        
        
        
        
        
          239,833
        
        
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Accrued interest receivable
        
        
        
        
          1,766
        
        
        
        
        
        
        
        
          1,952
        
        
        
      
      
        
        
        
          Foreclosed assets, net
        
        
        
        
          1,496
        
        
        
        
        
        
        
        
          123
        
        
        
      
      
        
        
        
          Property and equipment, net
        
        
        
        
          9,469
        
        
        
        
        
        
        
        
          8,958
        
        
        
      
      
        
        
        
          Other assets
        
        
           
        
        
          3,033
        
        
           
        
        
        
        
           
        
        
          2,509
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Total assets
        
        
          $
        
        
          318,581
        
        
           
        
        
        
        
          $
        
        
          318,269
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          LIABILITIES AND STOCKHOLDERS' EQUITY
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Liabilities
        
        
        
        
        
        
        
      
      
        
        
        
          Deposits
        
        
          $
        
        
          234,861
        
        
        
        
        
        
          $
        
        
          233,480
        
        
        
      
      
        
        
        
          Short-term borrowings
        
        
        
        
          4,481
        
        
        
        
        
        
        
        
          10,596
        
        
        
      
      
        
        
        
          Long-term borrowings
        
        
        
        
          59,048
        
        
        
        
        
        
        
        
          54,048
        
        
        
      
      
        
        
        
          Accrued interest payable
        
        
        
        
          541
        
        
        
        
        
        
        
        
          639
        
        
        
      
      
        
        
        
          Accounts payable and accrued expenses
        
        
           
        
        
          1,135
        
        
           
        
        
        
        
           
        
        
          821
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Total liabilities
        
        
           
        
        
          300,066
        
        
           
        
        
        
        
           
        
        
          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 2008 and 2007
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          1,607
        
        
        
        
        
        
        
        
          1,607
        
        
        
      
      
        
        
        
          Retained earnings, substantially restricted
        
        
        
        
          17,568
        
        
        
        
        
        
        
        
          17,135
        
        
        
      
      
        
        
        
          Accumulated other comprehensive loss
        
        
           
        
        
          (660
        
        
          )
        
        
        
        
           
        
        
          (57
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Total stockholders' equity
        
        
           
        
        
          18,515
        
        
           
        
        
        
        
           
        
        
          18,685
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Total liabilities and stockholders' equity
        
        
          $
        
        
          318,581
        
        
           
        
        
        
        
          $
        
        
          318,269
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          
            (a) Derived from audited financial statements
          
        
        
        
        
        
        
        
      
    
    
      
        
          KS Bancorp, Inc and Subsidiary
        
      
      
        
          Consolidated Statements of Income (Unaudited)
        
      
      
        
           
        
        
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          
            Three Months Ended
          
        
        
        
        
          Six Months Ended
        
      
      
        
        
        
        
        
          June 30,
        
        
        
        
          June 30,
        
      
      
        
        
        
        
        
          2008
        
        
        
        
          2007
        
        
        
        
          2008
        
        
        
        
          2007
        
      
      
        
        
        
        
        
          (In thousands, except per share data)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Interest and dividend income:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Loans
        
        
          $
        
        
          4,205
        
        
        
        
          $
        
        
          4,688
        
        
        
        
        
        
          $
        
        
          8,747
        
        
        
        
          $
        
        
          9,169
        
        
        
      
      
        
        
        
          Investment securties
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Taxable
        
        
        
        
          301
        
        
        
        
        
        
          264
        
        
        
        
        
        
        
        
          610
        
        
        
        
        
        
          532
        
        
        
      
      
        
        
        
          Tax-exempt
        
        
        
        
          345
        
        
        
        
        
        
          318
        
        
        
        
        
        
        
        
          683
        
        
        
        
        
        
          603
        
        
        
      
      
        
        
        
          Dividends
        
        
        
        
          43
        
        
        
        
        
        
          41
        
        
        
        
        
        
        
        
          88
        
        
        
        
        
        
          79
        
        
        
      
      
        
        
        
          Interest-bearing deposits
        
        
           
        
        
          8
        
        
        
        
           
        
        
          42
        
        
           
        
        
        
        
           
        
        
          34
        
        
        
        
           
        
        
          74
        
        
           
        
      
      
        
        
        
          Total interest and dividend income
        
        
           
        
        
          4,902
        
        
        
        
           
        
        
          5,353
        
        
           
        
        
        
        
           
        
        
          10,162
        
        
        
        
           
        
        
          10,457
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Interest expense:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Deposits
        
        
        
        
          1,879
        
        
        
        
        
        
          2,169
        
        
        
        
        
        
        
        
          4,073
        
        
        
        
        
        
          4,276
        
        
        
      
      
        
        
        
          Borrowings
        
        
           
        
        
          588
        
        
        
        
           
        
        
          713
        
        
           
        
        
        
        
           
        
        
          1,271
        
        
        
        
           
        
        
          1,366
        
        
           
        
      
      
        
        
        
          Total interest expense
        
        
           
        
        
          2,467
        
        
        
        
           
        
        
          2,882
        
        
           
        
        
        
        
           
        
        
          5,344
        
        
        
        
           
        
        
          5,642
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Net interest income
        
        
        
        
          2,435
        
        
        
        
        
        
          2,471
        
        
        
        
        
        
        
        
          4,818
        
        
        
        
        
        
          4,815
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Provision for loan losses
        
        
           
        
        
          18
        
        
        
        
           
        
        
          20
        
        
           
        
        
        
        
           
        
        
          53
        
        
        
        
           
        
        
          153
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Net interest income after
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          provision for loan losses
        
        
           
        
        
          2,417
        
        
        
        
           
        
        
          2,451
        
        
           
        
        
        
        
           
        
        
          4,765
        
        
        
        
           
        
        
          4,662
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Noninterest income:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Service charges on deposit accounts
        
        
        
        
          350
        
        
        
        
        
        
          327
        
        
        
        
        
        
        
        
          679
        
        
        
        
        
        
          616
        
        
        
      
      
        
        
        
          Fees from presold mortgages
        
        
        
        
          88
        
        
        
        
        
        
          119
        
        
        
        
        
        
        
        
          179
        
        
        
        
        
        
          207
        
        
        
      
      
        
        
        
          Gain (Loss) on sale of investments
        
        
        
        
          13
        
        
        
        
        
        
          (561
        
        
          )
        
        
        
        
        
        
          13
        
        
        
        
        
        
          (525
        
        
          )
        
      
      
        
        
        
          Other income
        
        
           
        
        
          43
        
        
        
        
           
        
        
          66
        
        
           
        
        
        
        
           
        
        
          81
        
        
        
        
           
        
        
          109
        
        
           
        
      
      
        
        
        
          Total noninterest income
        
        
           
        
        
          494
        
        
        
        
           
        
        
          (49
        
        
          )
        
        
        
        
           
        
        
          952
        
        
        
        
           
        
        
          407
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Noninterest expenses:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Compensation and benefits
        
        
        
        
          1,526
        
        
        
        
        
        
          1,328
        
        
        
        
        
        
        
        
          3,021
        
        
        
        
        
        
          2,645
        
        
        
      
      
        
        
        
          Occupancy and equipment
        
        
        
        
          241
        
        
        
        
        
        
          238
        
        
        
        
        
        
        
        
          483
        
        
        
        
        
        
          471
        
        
        
      
      
        
        
        
          Data processing & outside service fees
        
        
        
        
          177
        
        
        
        
        
        
          191
        
        
        
        
        
        
        
        
          387
        
        
        
        
        
        
          391
        
        
        
      
      
        
        
        
          Advertising
        
        
        
        
          39
        
        
        
        
        
        
          65
        
        
        
        
        
        
        
        
          92
        
        
        
        
        
        
          117
        
        
        
      
      
        
        
        
          Net foreclosed real estate
        
        
        
        
          31
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
          54
        
        
        
        
        
        
          19
        
        
        
      
      
        
        
        
          Other
        
        
           
        
        
          412
        
        
        
        
           
        
        
          338
        
        
           
        
        
        
        
           
        
        
          745
        
        
        
        
           
        
        
          615
        
        
           
        
      
      
        
        
        
          Total noninterest expenses
        
        
           
        
        
          2,426
        
        
        
        
           
        
        
          2,160
        
        
           
        
        
        
        
           
        
        
          4,782
        
        
        
        
           
        
        
          4,258
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Income before income taxes
        
        
        
        
          485
        
        
        
        
        
        
          242
        
        
        
        
        
        
        
        
          935
        
        
        
        
        
        
          811
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income tax expense
        
        
           
        
        
          86
        
        
        
        
           
        
        
          4
        
        
           
        
        
        
        
           
        
        
          162
        
        
        
        
           
        
        
          143
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Net income
        
        
          $
        
        
          399
        
        
        
        
          $
        
        
          238
        
        
           
        
        
        
        
          $
        
        
          773
        
        
        
        
          $
        
        
          668
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Basic and Diluted earnings per share
        
        
          $
        
        
          0.30
        
        
        
        
          $
        
        
          0.18
        
        
           
        
        
        
        
          $
        
        
          0.59
        
        
        
        
          $
        
        
          0.51
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Dividends per common share
        
        
          $
        
        
          0.13
        
        
        
        
          $
        
        
          0.13
        
        
           
        
        
        
        
          $
        
        
          0.26
        
        
        
        
          $
        
        
          0.26