Kinderhook Bank Corp. Reports Results for Full Year 2017

KINDERHOOK, N.Y.--()--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
December 31, 2017 December 31, 2016
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
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


Kinderhook Bank Corp.
Dori McDannold, 518-650-8199
Director of Marketing
Fax: 518-758-6963

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Kinderhook Bank Corp. (OTCQB:NUBK) Reports Results for Full Year 2017

Kinderhook Bank Corp.