KINDERHOOK, N.Y.--(BUSINESS WIRE)--Kinderhook Bank Corp. (“KBC”), (OTCQB:NUBK), the holding company for The National Union Bank of Kinderhook (the “Bank”), announced results for the year ended December 31, 2017.
Net income available to common shareholders was $1.2 million, or $1.53 (diluted) per common share, for the year ended December 31, 2017, compared with $2.5 million, or $2.97 (diluted) per common share, for the year ended December 31, 2016.
Results for the year 2017 included an after-tax charge of $735 thousand or $0.66 per share (diluted) of one-time merger and transactions costs related to the Bank’s acquisition of Patriot Federal Bank which was completed on November 10, 2017. Results for the year 2017 also included a non-recurring charge of $700 thousand or $0.62 per share (diluted) related to the remeasurement of net deferred tax assets due to the enactment of the new U.S. tax law during the fourth quarter 2017.
Total assets at December 31, 2017 were $620 million compared to $460 million at December 31, 2016.
KBC and Bank President and Chief Executive Officer, John A. Balli, stated, “2017 was the most transformative year in our 164-year history. We successfully completed our first whole-bank acquisition which increased total assets by approximately $140 million. A smooth system integration has made the conversion process virtually seamless for our new customers, and we are pleased that the transaction has been well received by both customers and employees.” Balli continued, “As expected, 2017 earnings per share were reduced by the acquisition transaction costs that were largely non-deductible for tax purposes and by a non-recurring charge related to the remeasurement of net deferred tax assets as a result of the enactment of the new federal tax law. As previously announced, we are pleased to have increased our quarterly dividend to $.24 per common share in October 2017, representing our seventh consecutive year with a dividend increase. As a well-capitalized institution with a diversified base of high quality earning assets and an eleven branch network spanning five counties, we believe the Bank is well positioned to continue to build value for shareholders and serve our growing customer base.”
In operation since 1853, Kinderhook Bank branches are located in Kinderhook, Valatie, Greenport, Chatham, East Greenbush, Delmar, Albany, Latham, Amsterdam, Johnstown and Canajoharie, NY.
Forward-Looking Statements
This news release may contain statements relating to future results of KBC’s and the Bank’s future results that are considered “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and expectations of management as well as the assumptions and estimates made by managing using information currently available to management. Since these statements reflect the views of management concerning future events, these statements involve risks, uncertainties and assumptions, including among others: changes in market interest rates and general and regional economic conditions; changes in laws and regulations; changes in accounting principles; and the quality or composition of the loan and investment portfolios, technological changes and cybersecurity matters, and other factors. Forward-looking statements made by KBC in this news release speak only as of the date they are made. Events or other facts that could cause KBC’s actual results to differ may arise from time to time and KBC cannot predict all such events and factors. KBC undertakes no obligation to publicly update any forward-looking statement unless as may be required by law.
| Kinderhook Bank Corp. and Subsidiaries | ||||||||||
| Consolidated Statements of Condition (unaudited) | ||||||||||
| December 31, 2017 and 2016 | ||||||||||
| CONSOLIDATED | CONSOLIDATED | |||||||||
| KBC | KBC | |||||||||
| December 31, 2017 | December 31, 2016 | |||||||||
| Assets | ||||||||||
| Cash & due | $ | 22,978,935.68 | $ | 11,070,541.99 | ||||||
| Investments | 106,208,432.19 | 100,200,118.79 | ||||||||
| Investment in Kinderhook Capital Trust | 62,000.00 | 62,000.00 | ||||||||
| Loans, net | 456,472,982.61 | 328,235,210.91 | ||||||||
| Fixed assets, net | 14,369,418.78 | 8,158,751.75 | ||||||||
| Goodwill | 4,628,560.76 | - | ||||||||
| Intangible assets | 1,238,124.00 | - | ||||||||
| Interest receivable | 1,834,406.48 | 1,298,639.44 | ||||||||
| Cash surrender value life insurance policies | 8,637,840.74 | 8,443,663.00 | ||||||||
| Deferred taxes | 2,007,535.76 | 1,609,975.00 | ||||||||
| Other assets | 1,156,585.44 | 949,896.93 | ||||||||
|
Total assets |
$ | 619,594,822.44 | $ | 460,028,797.81 | ||||||
| Liabilities and capital | ||||||||||
| Deposits | $ | 544,005,344.31 | $ | 398,580,285.63 | ||||||
| Interest payable | 285,998.93 | 303,343.31 | ||||||||
| FHLB borrowings | 5,449,639.00 | 10,000,000.00 | ||||||||
| Dividends payable | 161,747.59 | 161,747.59 | ||||||||
| Subordinated debt | 9,851,864.42 | 9,833,147.54 | ||||||||
| Trust-preferred borrowing | 2,043,575.00 | 2,042,475.00 | ||||||||
| Notes payable | 163,550.16 | 230,037.65 | ||||||||
| Deferred revenue | 740,283.51 | 187,839.21 | ||||||||
| Other liabilities | 3,398,827.63 | 2,397,226.07 | ||||||||
| Total liabilities | $ | 566,100,830.55 | $ | 423,736,102.00 | ||||||
| Common stock | 608,192.05 | 606,615.05 | ||||||||
| Preferred stock | 819,350.00 | 819,350.00 | ||||||||
| Additional paid-in-capital, preferred stock | 10,706,051.88 | 10,703,554.88 | ||||||||
| Unearned compensation - restricted stock | (45,934.00 | ) | - | |||||||
| Unrealized gain on investments | (353,645.65 | ) | (464,652.39 | ) | ||||||
| Additional paid-in-capital | 22,016,335.86 | 5,417,439.28 | ||||||||
| Retained earnings | 19,743,641.75 | 19,210,388.99 | ||||||||
| Total capital | 53,493,991.89 | 36,292,695.81 | ||||||||
| Total liabilities and capital | $ | 619,594,822.44 | $ | 460,028,797.81 | ||||||
| Kinderhook Bank Corp. and Subsidiaries | ||||||||
| Consolidated Statements of Operations (unaudited) | ||||||||
| twelve months ended December 31, 2017 and 2016 | ||||||||
| CONSOLIDATED | CONSOLIDATED | |||||||
| KBC | KBC | |||||||
| December 31, 2017 | December 31, 2016 | |||||||
| Interest income | ||||||||
| Loans | $ | 16,438,192.81 | $ | 15,507,848.65 | ||||
| Securities | 1,995,582.65 | 1,482,223.44 | ||||||
| Federal funds sold & other | 89,622.51 | 98,780.93 | ||||||
| Total interest income | 18,523,397.97 | 17,088,853.02 | ||||||
| Interest expense | 2,806,883.24 | 2,791,963.92 | ||||||
| Net interest income | 15,716,514.73 | 14,296,889.10 | ||||||
| Provision for loan losses | 218,125.00 | 477,047.00 | ||||||
| Net interest income after | ||||||||
| provision for loan losses | 15,498,389.73 | 13,819,842.10 | ||||||
| Noninterest income | ||||||||
| Service charges | 1,617,853.98 | 1,615,267.81 | ||||||
| Dividends | 2,430.08 | 2,119.26 | ||||||
| Other | 343,661.93 | 776,255.75 | ||||||
| Total noninterest income | 1,963,945.99 | 2,393,642.82 | ||||||
| Noninterest expense | ||||||||
| Salaries and employee benefits | 7,711,753.65 | 6,693,500.68 | ||||||
| Occupancy | 1,935,105.75 | 1,799,922.77 | ||||||
| Merger and acquisition related expenses | 783,834.19 | - | ||||||
| Loss on early termination of leasehold improvements | 108,457.28 | - | ||||||
| Amortization of intangibles | 17,538.00 | - | ||||||
| Other | 3,503,194.12 | 3,322,794.05 | ||||||
| Total noninterest expense | 14,059,882.99 | 11,816,217.50 | ||||||
| Income before income taxes | 3,402,452.73 | 4,397,267.42 | ||||||
| Income tax expense | 1,543,749.09 | 1,255,766.09 | ||||||
| Net income | $ | 1,858,703.64 | $ | 3,141,501.33 | ||||
| Less: Preferred stock dividends | 641,715.99 | 645,232.24 | ||||||
| Income available to common stockholders | $ | 1,216,987.65 | $ | 2,496,269.09 | ||||
| Basic earnings per share | $ | 1.53 | $ | 3.42 | ||||
| Diluted earnings per share | $ | 1.53 | $ | 2.97 | ||||
| Weighted-average # of shares for Basic EPS | 793,901.095 | 730,861.509 | ||||||
| Weighted-average # of shares for Diluted EPS | 1,121,641.095 | 1,058,601.509 | ||||||