July 27, 2016 - 7:00 AM EDT
Print Email Article Font Down Font Up Charts

BNCCORP, INC. Reports Second Quarter Net Income To Common Shareholders Of $2.0 Million, Or $0.58 Per Diluted Share

2016 Second Quarter Highlights - 2016 second quarter results reflect continued strong financial performance and growing shareholder value - Net income available to common shareholders increased 12.2% to $2.0 million, from $1.8 million in the second quarter of 2015, primarily due to higher net interest income and non-interest income, and the beneficial impact of deleveraging - Basic and diluted earnings per share in the first half of 2016 were $1.00 and $0.98, respectively - Book value per common share was $22.35 at June 30, 2016 compared to $20.12 at December 31, 2015, an increase of 11.1% - Return on equity was 12.05% in the second quarter of 2016 and 10.37% year to date - Nonperforming assets were 0.28% of total assets as of June 30, 2016, comparable to 0.10% of total assets at March 31, 2016

BISMARCK, N.D., July 27, 2016 /PRNewswire/ -- BNCCORP, INC. (BNC or the Company) (OTCQX Markets: BNCC), which operates community banking and wealth management businesses in North Dakota, Arizona and Minnesota, and has mortgage banking offices in Arkansas, Illinois, Kansas, Missouri, Minnesota, Arizona and North Dakota, today reported financial results for the second quarter ended June 30, 2016.

Net income available to common shareholders in the 2016 second quarter was $2.035 million, or $0.58 per diluted share, compared to $1.813 million, or $0.52 per diluted share, in the second quarter of 2015. The increase in net income to common shareholders is primarily attributable to higher net interest income, higher non-interest income, and the impact of deleveraging BNC in the fourth quarter of 2015.

Net interest income in the 2016 second quarter increased by $66 thousand from the same quarter in 2015, as growth of loans held for investment resulted in higher yields on earning assets and improved the net interest margin.

Non-interest income in the second quarter of 2016 increased by $755 thousand, or 11.2%, from the same period in 2015 driven by growth in mortgage banking revenue. Excluding the impact of gains on the sale of securities, non-interest income increased $1.282 million, or 22.2%, when compared to the second quarter of 2015. Non-interest expense increased by $970 thousand, or 10.0%, in the second quarter of 2016 due to higher mortgage volume related costs and investments in technology as BNC strives to improve its customers' experience and keep pace with advancements in technology.

The provision for credit losses was $400 thousand in the second quarter of 2016 and $0 for the same period in 2015. The ratio of nonperforming assets to total assets was 0.28% at June 30, 2016 compared to 0.09% at December 31, 2015.

Book value per common share at June 30, 2016 rose to $22.35 compared to $20.12 and $19.23 at December 31, 2015 and June 30, 2015, respectively. Excluding accumulated other comprehensive income, book value per common share at June 30, 2016 was $19.87 compared to $18.93 and $18.06 at December 31, 2015 and June 30, 2015, respectively.

Timothy J. Franz, BNC President and Chief Executive Officer, said, "Our 2016 second quarter continued the extended sequence of quarters where BNC has delivered strong performance and built value. In the last ten quarters BNC's book value per share has increased by 54.7% and since the beginning of 2012 our book value per share has increased by 248.1%.  Our earnings per share in recent periods reflect the value we are building. We look forward to continuing our recent history of quarterly earnings that builds shareholder value."

Mr. Franz continued, "The North Dakota economy is notably influenced by the energy and agricultural sectors which have been challenged in recent periods. Despite a small increase in the nonperforming assets ratio this quarter; we have successfully managed these economic challenges as our credit quality metrics remain excellent. In the second quarter, we recognized a provision for credit losses for the first time in two and half years. We believe maintaining our allowance for credit losses results in a balance sheet that is resistant to global and regional economic risks. Our strong balance sheet can provide a solid foundation as we continue building our franchise and creating value for shareholders."

Second Quarter Results

Net interest income for the second quarter of 2016 was $6.482 million, an increase of $66 thousand, or 1.0%, from $6.416 million in the same period of 2015. Overall, the net interest margin increased to 3.01% in the second quarter of 2016 from 2.93% in the second quarter of 2015.

Interest income was $7.346 million for the quarter ended June 30, 2016 compared to $7.112 million in the second quarter of 2015. This increase is the result of higher yields on earning assets partially offset by lower average balances. The yield on assets increased to 3.42% in the second quarter of 2016 from 3.25% in the second quarter of 2015, while the average balance of interest earning assets decreased by $12.3 million. Our average loans held for investment increased by $44.6 million year-over-year while the average balances of loans held for sale and investments were $15.4 million and $31.4 million lower, respectively. Despite the overall decrease in average investments, we have increased our investment in tax exempt municipal securities, which aggregated $90.7 million at June 30, 2016, due to the relatively attractive attributes of these securities in the context of our overall portfolio and balance sheet management activities and value provided via reduced income tax expense.

Interest expense in the second quarter of 2016 was $864 thousand, an increase of $168 thousand from the same period in 2015. In the second quarters of 2016 and 2015, BNC submitted notices to redeem $14.6 million and $20.0 million, respectively, of higher rate callable brokered certificates of deposit, at a cost of $92 thousand and $87 thousand, respectively. The cost of interest bearing liabilities increased to 0.50% in the current quarter from 0.42% in the same period of 2015, primarily due to the issuance of subordinated debt in the fourth quarter of 2015, and an increase in retail certificates of deposit balances in recent quarters. The cost of these liabilities were partially offset by redeeming higher cost brokered certificates of deposit in the second quarter of 2015 and first quarter of 2016. The cost of core deposits was 0.22% in the second quarter of 2016 and 0.16% in the second quarter of 2015, due largely to higher balances of retail certificates of deposits which generally have higher rates than non-maturity deposits. Average interest bearing deposits decreased $23.6 million, or 3.9%, during the second quarter of 2016 compared to the second quarter of 2015, primarily due to the redemption of brokered certificates of deposits.

Provision for credit losses was $400 thousand in the second quarter of 2016. As a result, our allowance for credit losses has remained essentially flat in 2016. This compares with $0 provision for the same period in 2015. 

Preferred stock costs were $0 in the second quarter of 2016 due to the redemption of the preferred stock in the fourth quarter of 2015, and $474 thousand in the second quarter of 2015.

Non-interest income for the second quarter of 2016 was $7.495 million, an increase of $755 thousand, or 11.2%, from $6.740 million in the second quarter of 2015. Excluding the impact of gains on the sale of securities, noninterest income increased $1.282 million or 22.2% primarily due to an increase in mortgage revenue. Mortgage banking production resulted in revenues of $5.354 million in the second quarter of 2016 compared to $4.015 million in the second quarter of 2015. During the second quarter of 2016, we recorded net gains on sales of investments and SBA loan sales of $615 thousand compared to $1.221 million of net gains on sales of these assets in the same period of 2015. Gains on sales of SBA loans have declined as the Company's loan growth has recently favored conventional loans. Gains and losses on sales of assets can vary significantly from period to period.

Non-interest expense for the second quarter of 2016 increased $970 thousand to $10.628 million from $9.658 million in the second quarter of 2015. This increase is primarily related to elevated mortgage banking activities and investment in our technology.

In the second quarter of 2016, income tax expense was $914 thousand compared to $1.211 million in the second quarter of 2015. The effective tax rate was 31.0% in the second quarter of 2016 compared to 34.6% in the same period of 2015. The decrease in the effective tax rate in the second quarter of 2016 is due to a higher percentage of tax exempt income than in the second quarter 2015.

Net income available to common shareholders was $2.035 million, or $0.58 per diluted share, for the second quarter of 2016. Net income available to common shareholders in the second quarter of 2015 was $1.813 million, or $0.52 per diluted share after accounting for dividends paid on preferred stock. The preferred stock costs were $0 in the second quarter of 2016 due to the redemption of the preferred stock in the fourth quarter of 2015, and $474 thousand in the second quarter of 2015.

Six Months Ended June 30, 2016

Net interest income in the first half of 2016 was $12.758 million, a decrease of $265 thousand, or 2.0%, from $13.023 million in the first half of 2015 as the impact of higher yields on earning assets was offset by the impact of lower average earning assets. Yields on earning assets overall increased to 3.43% in the six month period ended June 30, 2016 compared to 3.28% in the same period of 2015, as average loan balances increased as a percentage of average earning assets from approximately 46% to 51%. Average loans held for investment increased $38.9 million, or 11.0%, compared to the first half of the prior year.  On average, mortgage loans held for sale decreased by $12.6 million when compared to 2015. The average balance of investment securities decreased by $32.3 million in the first six months of 2016 compared to the same period a year ago. Overall, the net interest margin increased to 3.01% in the first six months of 2016 from 2.98% in the first six months of 2015.

Interest expense in the first half of 2016 increased to $1.763 million from $1.307 million, or 34.8%, in the same period of 2015. In the first half of 2016 and 2015, BNC submitted notices to redeem $33.4 million and $20.0 million, respectively, of higher rate callable brokered certificates of deposit, at a cost of $233 thousand, and $87 thousand, respectively. Excluding the costs to redeem these brokered deposits, interest expense increased by $311 thousand. The cost of interest bearing liabilities increased to 0.52% in the first half of 2016 from 0.39% in the same period of 2015, primarily due to the issuance of subordinated debt in 2015, and an increase in retail certificates of deposit balances partially offset by the effects of redeeming brokered deposits. The cost of core deposits increased to 0.21% in the first half of 2016 from 0.16% in the first half of 2015 as retail certificates of deposits have increased in recent quarters.

Provision for credit losses was $400 thousand in the first six months of 2016. This provision compares with $0 provision for the same period in 2015.

Non-interest income for the first six months of 2016 was $13.146 million, a decrease of $1.245 million, or 8.7% from $14.391 million in the same period of 2015. The decrease primarily relates to a $1.123 million, or 72.0%, decrease in gains on sales of securities. During the six month period ended June 30, 2016, we recorded a net gain on sales of investments of $437 thousand, compared to a $1.560 million net gain on sales of investments in the same period of 2015. Excluding securities gains, non-interest income decreased 1.0%.

Non-interest expense for the first six months of 2016 was $20.474 million, an increase of $1.150 million, or 6.0%, from $19.324 million in the same period of 2015. This increase is primarily related to compensation for producers, expenses associated with higher mortgage banking activity, as well as investments in technology.

During the six month period ended June 30, 2016, we recorded a tax expense of $1.580 million, equating to an effective tax rate of 31.4%. We recorded tax expense of $2.589 million during the six month period ended June 30, 2015, which resulted in an effective tax rate of 32.0%.

Preferred stock costs were $0 in the first six months of 2016 due to the redemption of the preferred stock in the fourth quarter of 2015, versus $949 thousand in the first half of 2015.

Net income available to common shareholders was $3.450 million, or $0.98 per diluted share, for the six months ended June 30, 2016. Net income available to common shareholders in the first six months of 2015 was $4.552 million, or $1.30 per diluted share after accounting for dividends paid on preferred stock.

Assets, Liabilities and Equity

Total assets were $927.0 million at June 30, 2016, an increase of $22.8 million, or 2.5%, compared to $904.2 million at December 31, 2015.  Loans held for investment aggregated $399.7 million at June 30, 2016, an increase of $19.8 million, or 5.2% since December 31, 2015.  In addition, mortgage loans held for sale as of June 30, 2016 were up $8.7 million from December 31, 2015 as mortgage volume continues to remain strong.  Investment balances remained relatively unchanged from year-end 2015.

Total deposits were $757.0 million at June 30, 2016, a decrease of $23.4 million from $780.4 million at 2015 year-end. We exercised our right to call $18.8 million of brokered deposits in the first quarter of 2016. As a result, core deposit balances of $756.5 million at June 30, 2016 decreased only $4.4 million, or 0.6%, from $760.9 million at December 31, 2015. The Company has utilized Federal Home Loan Bank short term advances with an average cost of 0.48% to fund loan growth.

The table below shows changes in total deposits since 2012:

















June 30,


December 31,


December 31,


December 31,


December 31,

(In Thousands)

2016


2015


2014


2013


2012
















ND Bakken Branches

$

180,834


$

190,670


$

178,565


$

166,904


$

144,662

ND Non-Bakken Branches


377,937



388,630



433,129



382,225



335,452

Total ND Branches


558,771



579,300



611,694



549,129



480,114

Other


198,268



201,149



199,537



174,100



169,490

Total Deposits

$

757,039


$

780,449


$

811,231


$

723,229


$

649,604

 

Trust assets under management or administration increased to $263.1 million at June 30, 2016, compared to $248.4 million at December 31, 2015.

Capital

Banks and bank holding companies operate under separate regulatory capital requirements.

At June 30, 2016, our capital ratios exceeded all regulatory capital thresholds and maintained sufficient capital conservation buffers to avoid limitations on certain types of capital distributions.

A summary of our capital ratios at June 30, 2016 and December 31, 2015 are presented below:



June 30,

2016


December 31,

2015

BNCCORP, INC (Consolidated)





   Tier 1 leverage


9.07%


9.00%

   Total risk based capital


19.48%


20.07%

   Common equity tier 1 risk based capital


13.34%


13.57%

   Tier 1 risk based capital


16.28%


16.72%

   Tangible common equity


8.29%


7.62%






BNC National Bank





   Tier 1 leverage


9.50%


9.45%

   Total risk based capital


18.30%


18.71%

   Common equity tier 1 risk based capital


17.04%


17.45%

   Tier 1 risk based capital


17.04%


17.45%

 

The CET 1 ratio, which is generally a comparison of a bank's core equity capital to its total risk weighted assets, is a measure of the current risk profile of our asset base from a regulatory perspective. The Tier 1 leverage ratio, which is based on average assets, does not consider the mix of risk weighted assets. In recent periods, regulators have required Tier 1 leverage ratios that significantly exceed "Well Capitalized" ratio levels. As a result, management believes the Bank's Tier 1 leverage ratio is our most restrictive capital measurement and we are managing the Tier 1 leverage ratio to levels significantly above the "Well Capitalized" ratio threshold.

In addition to regulatory risk based capital standards, we believe that regulators and investors also monitor the capital ratio of tangible common equity to total period end assets.

Book value per common share of the Company was $22.35 as of June 30, 2016, compared to $20.12 at December 31, 2015. Book value per common share, excluding accumulated other comprehensive income, was $19.87 as of June 30, 2016, compared to $18.93 at December 31, 2015.

Asset Quality

The allowance for credit losses was $8.7 million at June 30, 2016, compared to $8.6 million at December 31, 2015. The allowance for credit losses as a percentage of total loans at June 30, 2016 was 1.90%, compared to 2.00% at December 31, 2015. The allowance as a percentage of loans and leases held for investment at June 30, 2016 was 2.18% and at December 31, 2015 was 2.27%.

Nonperforming assets were $2.6 million at June 30, 2016, up from $807 thousand at December 31, 2015. The ratio of nonperforming assets to total assets was 0.28% at June 30, 2016 and 0.09% at December 31, 2015. Nonperforming loans were $2.3 million at June 30, 2016, up from $565 thousand at December 31, 2015. The increase in nonperforming assets relates to one relationship in the energy sector.

Since the beginning of 2016 our classified loans have decreased and non-accrual loans have increased. At June 30, 2016, BNC had $4.1 million of classified loans, $2.3 thousand of loans on non-accrual and $225 thousand of other real estate owned. At December 31, 2015, BNC had $9.8 million of classified loans, $390 thousand of loans on non-accrual and $242 thousand of other real estate owned. BNC had $8.7 million of potentially problematic loans, which are risk rated "watch list", at June 30, 2016 compared with $7.9 million as of December 31, 2015.  The decrease in classified loans relates primarily to one relationship in North Dakota.

As evidenced by our nonperforming asset ratios and delinquency rates, as of June 30, 2016, the decrease in oil and agricultural commodity prices have yet to have a significant negative effect on our credit quality. However, prolonged depressed oil prices could have an adverse economic impact on the North Dakota economy, commodity dependent businesses, and our loan portfolio. Oil prices most directly impact the underlying collateral for our oil exploration and production (E&P) loans. Loans outstanding for the purpose of and secured by E&P in North Dakota were approximately $11.8 million, or 2.9% of total loans held for investment at June 30, 2016 compared to $11.7 million, or 3.1%, of loans held for investment at December 31, 2015. Advances on E&P lines are generally limited to 50% of the value of proven, developed and producing oil reserves with valuations generally being performed on a semi-annual basis. In addition to E&P loans, loans to customers serving the energy industries will be impacted by protracted low energy prices.

BNCCORP, INC., headquartered in Bismarck, N.D., is a registered bank holding company dedicated to providing banking and wealth management services to businesses and consumers in its local markets. The Company operates community banking and wealth management businesses in North Dakota, Arizona and Minnesota from 16 locations. BNC also conducts mortgage banking from 17 offices in Arkansas, Illinois, Kansas, Missouri, Minnesota, Arizona and North Dakota. 

This news release may contain "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of BNC. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management are generally identifiable by the use of words such as "expect", "believe", "anticipate", "plan", "intend", "estimate", "may", "will", "would", "could", "should", "future" and other expressions relating to future periods. Examples of forward-looking statements include, among others, statements we make regarding our belief that we have exceptional liquidity, our expectations regarding future market conditions and our ability to capture opportunities and pursue growth strategies, our expected operating results such as revenue growth and earnings and our expectations of the effects of the regulatory environment on our earnings for the foreseeable future.  Forward-looking statements are neither historical facts nor assurances of future performance.  Our actual results and financial condition may differ materially from those indicated in the forward-looking statements.  Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, but are not limited to: the impact of current and future regulation; the risks of loans and investments, including dependence on local and regional economic conditions; competition for our customers from other providers of financial services; possible adverse effects of changes in interest rates, including the effects of such changes on mortgage banking revenues and derivative contracts and associated accounting consequences; risks associated with our acquisition and growth strategies; and other risks which are difficult to predict and many of which are beyond our control. In addition, all statements in this news release, including forward-looking statements, speak only of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

This press release contains references to financial measures which are not defined in generally accepted accounting principles ("GAAP"). Such non-GAAP financial measures include the Company's tangible equity to assets ratio and information presented excluding nonrecurring transactions. These non-GAAP financial measures have been included as the Company believes they are helpful for investors to analyze and evaluate the Company's financial condition.

(Financial tables attached)

 

BNCCORP, INC.

CONSOLIDATED FINANCIAL DATA

(Unaudited)




For the Quarter
Ended June 30,


For the Six Months
Ended June 30,

(In thousands, except per share data)


2016


2015


2016


2015

SELECTED INCOME STATEMENT DATA













Interest income


$

7,346


$

7,112


$

14,521


$

14,330

Interest expense



864



696



1,763



1,307

Net interest income



6,482



6,416



12,758



13,023

Provision for credit losses



400



-



400



-

Non-interest income



7,495



6,740



13,146



14,391

Non-interest expense



10,628



9,658



20,474



19,324

Income before income taxes



2,949



3,498



5,030



8,090

Income tax expense



914



1,211



1,580



2,589

Net income



2,035



2,287



3,450



5,501

Preferred stock costs



-



474



-



949

Net income available to common shareholders


$

2,035


$

1,813


$

3,450


$

4,552

EARNINGS PER SHARE DATA













Basic earnings per common share


$

0.59


$

0.53


$

1.00


$

1.34

Diluted earnings per common share


$

0.58


$

0.52


$

0.98


$

1.30

 


BNCCORP, INC.

CONSOLIDATED FINANCIAL DATA

(Unaudited)




For the Quarter
Ended June 30,


For the Six Months
Ended June 30,

(In thousands, except per share data)


2016


2015


2016


2015

ANALYSIS OF NON-INTEREST INCOME













Bank charges and service fees


$

689


$

732


$

1,363


$

1,424

Wealth management revenues



395



394



783



772

Mortgage banking revenues



5,354



4,015



9,729



9,484

Gains on sales of loans, net



178



257



223



572

Gains on sales of investments, net



437



964



437



1,560

Other



442



378



611



579

  Total non-interest income


$

7,495


$

6,740


$

13,146


$

14,391

ANALYSIS OF NON-INTEREST EXPENSE













Salaries and employee benefits


$

5,529


$

5,087


$

10,781


$

10,679

Professional services



1,266



1,058



2,224



1,852

Data processing fees



947



742



1,807



1,502

Marketing and promotion



979



895



1,902



1,556

Occupancy



545



443



1,069



950

Regulatory costs



167



178



334



347

Depreciation and amortization



378



355



721



704

Office supplies and postage



173



176



349



339

Other real estate costs



20



-



22



15

Other



624



724



1,265



1,380

  Total non-interest expense


$

10,628


$

9,658


$

20,474


$

19,324

WEIGHTED AVERAGE SHARES













Common shares outstanding (a)



3,447,687



3,387,718



3,444,242



3,385,275

Incremental shares from assumed conversion of options and contingent shares



74,346



112,371



74,702



113,235

Adjusted weighted average shares (b)



3,522,033



3,500,089



3,518,944



3,498.510



(a)

Denominator for basic earnings per common share

(b)

Denominator for diluted earnings per common share

 

BNCCORP, INC.

CONSOLIDATED FINANCIAL DATA

(Unaudited)




As of

(In thousands, except share, per share and full time equivalent data)


June 30,

2016


December 31,
2015


June 30,

2015

SELECTED BALANCE SHEET DATA










Total assets


$

926,978


$

904,246


$

904,852

Loans held for sale-mortgage banking



59,141



50,445



54,637

Loans and leases held for investment



399,671



379,903



360,404

Total loans



458,812



430,348



415,041

Allowance for credit losses



(8,725)



(8,611)



(8,591)

Investment securities available for sale



415,499



419,346



437,036

Other real estate, net



225



242



242

Earning assets



871,479



848,075



852,731

Total deposits



757,039



780,449



766,245

Core deposits (1)



756,520



760,937



750,924

Other borrowings



81,549



46,166



42,615

Cash and cash equivalents



9,855



15,189



15,140

OTHER SELECTED DATA










Net unrealized gains in accumulated other comprehensive income


$

8,539


$

4,081


$

3,993

Trust assets under supervision


$

263,087


$

248,371


$

266,576

Total common stockholders' equity


$

77,047


$

68,988


$

65,655

Book value per common share


$

22.35


$

20.12


$

19.23

Book value per common share excluding accumulated  other comprehensive income, net


$

19.87


$

18.93


$

18.06

Full time equivalent employees



288



263



264

Common shares outstanding



3,447,061



3,428,416



3,414,052

CAPITAL RATIOS










Common equity Tier 1 risk-based capital (Consolidated)



13.34%



13.57%



12.97%

Tier 1 leverage (Consolidated)



9.07%



9.00%



10.52%

Tier 1 risk-based capital (Consolidated)



16.28%



16.72%



20.59%

Total risk-based capital (Consolidated)



19.48%



20.07%



21.84%

Tangible common equity (Consolidated)



8.29%



7.62%



7.26%











Common equity Tier 1 risk-based capital (Bank)



17.04%



17.45%



19.41%

Tier 1 leverage (Bank)



9.50%



9.45%



9.94%

Tier 1 risk-based capital (Bank)



17.04%



17.45%



19.41%

Total risk-based capital (Bank)



18.30%



18.71%



20.67%

Tangible capital (Bank)



10.39%



9.71%



10.70%













(1)

Core deposits consist of all deposits and repurchase agreements with customers and exclude certain brokered certificates of deposit.

           

BNCCORP, INC.  

CONSOLIDATED FINANCIAL DATA

(Unaudited)




For the Quarter
Ended June 30,


For the Six Months
Ended June 30,

(In thousands)


2016


2015


2016


2015

AVERAGE BALANCES













Total assets


$

919,300


$

928,772


$

905,823


$

933,157

Loans held for sale-mortgage banking



50,096



65,499



43,634



56,257

Loans and leases held for investment



400,158



355,545



391,976



353,079

Total loans



450,254



421,044



435,610



409,336

Investment securities available for sale



417,171



448,534



418,053



450,306

Earning assets



865,164



877,485



852,014



881,262

Total deposits



748,049



788,566



754,579



799,786

Core deposits



746,370



760,570



746,385



767,359

Total equity



74,555



88,679



73,361



87,121

Cash and cash equivalents



9,900



22,010



11,412



36,565

KEY RATIOS













Return on average common stockholders' equity (a)



12.05%



11.78%



10.37%



15.22%

Return on average assets (b)



0.89%



0.99%



0.77%



1.19%

Net interest margin



3.01%



2.93%



3.01%



2.98%

Efficiency ratio



76.04%



73.41%



79.04%



70.49%

Efficiency ratio (BNC National Bank)



73.41%



71.75%



75.66%



68.25%



(a)

Return on average common stockholders' equity is calculated by using the net income available to common shareholders as the numerator and average common equity (less preferred stock and accumulated other comprehensive income) as the denominator.

(b)

Return on average assets is calculated by using net income as the numerator and average total assets as the denominator.

 

BNCCORP, INC.

CONSOLIDATED FINANCIAL DATA

(Unaudited)




As of

(In thousands)


June 30,

2016


December 31,
2015


June 30,

2015

ASSET QUALITY










Loans 90 days or more delinquent and still accruing interest


$

-


$

175


$

436

Non-accrual loans



2,341



390



286

Total nonperforming loans


$

2,341


$

565


$

722

Other real estate, net



225



242



242

Total nonperforming assets


$

2,566


$

807


$

964

Allowance for credit losses


$

8,725


$

8,611


$

8,591

Troubled debt restructured loans


$

2,084


$

2,197


$

2,142

Ratio of total nonperforming loans to total loans



0.51%



0.13%



0.17%

Ratio of total nonperforming assets to total assets



0.28%



0.09%



0.11%

Ratio of nonperforming loans to total assets



0.25%



0.06%



0.08%

Ratio of allowance for credit losses to loans and leases held for investment



2.18%



2.27%



2.38%

Ratio of allowance for credit losses to total loans



1.90%



2.00%



2.07%

Ratio of allowance for credit losses to nonperforming loans



373%



1,524%



1,190%

 



For the Quarter
Ended June 30,


For the Six Months
Ended June 30,

(In thousands)


2016


2015


2016


2015

Changes in Nonperforming Loans:













Balance, beginning of period


$

672


$

287


$

565


$

61

Additions to nonperforming



1,980



608



2,135



843

Charge-offs



(64)



(146)



(95)



(146)

Reclassified back to performing



(175)



(13)



(175)



(19)

Principal payments received



(72)



(14)



(89)



(17)

Balance, end of period


$

2,341


$

722


$

2,341


$

722

 

BNCCORP, INC.

CONSOLIDATED FINANCIAL DATA

(Unaudited)




For the Quarter
Ended June 30,


For the Six Months
Ended June 30,

(In thousands)


2016


2015


2016


2015

Changes in Allowance for Credit Losses:













Balance, beginning of period


$

8,479


$

8,736


$

8,611


$

8,601

Provision



400



-



400



-

Loans charged off



(174)



(151)



(313)



(195)

Loan recoveries



20



6



27



185

Balance, end of period


$

8,725


$

8,591


$

8,725


$

8,591














Ratio of net charge-offs to average total loans



(0.034)%



(0.034)%



(0.066)%



(0.002)%

Ratio of net charge-offs to average total loans, annualized



(0.137)%



(0.138)%



(0.131)%



(0.005)%

 



For the Quarter
Ended June 30,


For the Six Months
Ended June 30,

(In thousands)


2016


2015


2016


2015

Changes in Other Real Estate:













Balance, beginning of period


$

242


$

242


$

242


$

256

Transfers from nonperforming loans



-



-



-



-

Real estate sold



-



-



(4)



-

Net gains on sale of assets



-



-



4



-

Provision



(17)



-



(17)



(14)

Balance, end of period


$

225


$

242


$

225


$

242

 



As of

(In thousands)


June 30,

2016


December 31,
2015


June 30,

2015

Other Real Estate:










Other real estate


$

954


$

954


$

954

Valuation allowance



(729)



(712)



(712)

Other real estate, net


$

225


$

242


$

242

 

BNCCORP, INC.

CONSOLIDATED FINANCIAL DATA

(Unaudited)




As of

(In thousands)


June 30,

2016


December 31,
2015


June 30,

2015

CREDIT CONCENTRATIONS










North Dakota










  Commercial and industrial


$

44,661


$

46,311


$

46,510

  Construction



10,259



11,937



17,039

  Agricultural



16,972



16,159



11,103

  Land and land development



10,405



11,549



9,944

  Owner-occupied commercial real estate



37,864



37,832



37,230

  Commercial real estate



87,673



79,119



75,748

  Small business administration



4,825



2,662



1,367

  Consumer



43,043



39,228



37,388

    Subtotal loans held for investment


$

255,702


$

244,797


$

236,329

Consolidated










  Commercial and industrial


$

61,892


$

62,940


$

64,822

  Construction



14,259



15,187



23,980

  Agricultural



17,496



18,003



11,722

  Land and land development



16,189



17,627



17,537

  Owner-occupied commercial real estate



44,035



44,066



45,407

  Commercial real estate



165,891



149,099



134,545

  Small business administration



27,512



25,860



21,309

  Consumer



52,074



47,073



41,065

    Total loans held for investment


$

399,348


$

379,855


$

360,387

 

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bnccorp-inc-reports-second-quarter-net-income-to-common-shareholders-of-20-million-or-058-per-diluted-share-300304590.html

SOURCE BNCCORP, INC.


Source: PR Newswire (July 27, 2016 - 7:00 AM EDT)

News by QuoteMedia
www.quotemedia.com

Legal Notice