After seven years as a public company, KS Bancorp Inc. in Smithfield, N.C., is planning to deregister its stock and go private.
The $223 million-asset company said late Wednesday that it would buy back much of its stock to reduce its number of shareholders to fewer than 300. That would free it from the obligation to file reports with the Securities and Exchange Commission.
Like a number of other small banks and thrifts that have gone private of late, KS Bancorp said it is doing so to reduce regulation and lower its compliance costs.
"We expect that the reduced burden on management will allow our officers to focus more attention on our customers where we operate," said chief executive officer Harold Keen.
KS Bancorp said it would seek approval to buy back all the stock of shareholders who have fewer than 200 shares, at $24 per share. Stockholders will be asked to approve the proposal at a special meeting in February.
Its stock was trading at $22 at midday Thursday. On an average day only 90 shares change hands.
