BNCCORP, INC. Reports Third Quarter Net Income Of $2.0 Million, Or $0.43 Per Diluted Share

BISMARCK, N.D., Oct. 27, 2014 /PRNewswire/ -- BNCCORP, INC. (BNC or the Company) (OTCQB Markets: BNCC), which operates community banking and wealth management businesses in North Dakota, Arizona and Minnesota, and has mortgage banking offices in Illinois, Kansas, Minnesota, Arizona and North Dakota, today reported financial results for the third quarter ended September 30, 2014. 

Net income for the 2014 third quarter was $1.981 million, or $0.43 per diluted share. This compares to net income of $487 thousand, or $0.05 per diluted share, in the third quarter of 2013. Results for the third quarter of 2014 primarily reflect substantially increased net interest income largely due to higher balances of earning assets and a rise in net interest margin. Non-interest income and non-interest expense increased compared to the third quarter of 2013, excluding non-recurring items. The third quarter of 2014 also included a reversal of previous provisions for loan losses which increased pre-tax earnings by $200 thousand as credit quality continues to improve.

Timothy J. Franz, BNCCORP President and Chief Executive Officer, said, "We had a solid quarter and have made significant strides forward, particularly when compared to the unsettled business environment in the third quarter one year ago. Our core bank is growing and mortgage banking has largely shifted away from refinancing activity toward purchase originations. These improvements are resulting in higher net interest income and improved non-interest income. As a result of hard work, our credit risk profile is currently very good."

Mr. Franz added, "While our improvement has been noteworthy, challenges remain. Balancing loan growth and credit risk requires constant diligence and mortgage banking operations dependent on purchase activity introduces seasonality to a complicated business segment. We are focused on these challenges and believe our ability to grow deposits and the pipeline of loans held for investment should continue to drive performance. Most importantly, our people have the talent and motivation to continue creating value."

Third Quarter Results

Net interest income for the third quarter of 2014 was $6.749 million, an increase of $2.133 million, or 46.2%, from $4.616 million in the same period of 2013. Third quarter interest income rose year over year as the average balance of interest earning assets increased by $95.5 million to $845.8 million from $750.3 million, when compared to the third quarter of 2013. The average loans held for investment increased $54.3 million, or 19.6%, compared to the prior year third quarter. On average, loans held for sale decreased by $14.4 million when compared to the third quarter of 2013 due to lower mortgage banking activity. The decrease in net interest income resulting from this lower balance was more than offset by the net interest income resulting from an increase of $92.5 million in average investment securities during the same period. The net interest margin in the third quarter of 2014 increased to 3.17% compared to 2.44% in the same period of 2013. The yield on earning assets increased to 3.54% in the third quarter of 2014, compared to 2.94% in the third quarter of 2013. 

Interest expense decreased $153 thousand or 16.2% despite growth in deposits as we have been able to lower the rates paid on deposits. The redemption of $7.5 million of 12.05% subordinated debentures reduced interest expense by approximately $106 thousand in the third quarter of 2014. The cost of interest bearing liabilities declined to 0.47% in the current quarter, compared to 0.61% in the same period of 2013. The cost of core deposits was 0.17% in the current quarter compared to 0.22% in the same period of 2013.

A reversal of previous provisions for credit losses increased pre-tax earnings by $200 thousand in the third quarter 2014 as credit quality continues to improve.

Non-interest income for the third quarter of 2014 was $4.814 million, a decrease of $187 thousand, or 3.7%, from $5.001 million in the third quarter of 2013. Excluding the impact of non-recurring insurance proceeds aggregating $1.055 million in 2013, non-interest income in the third quarter of 2014 increased by $868 thousand or 22.0%. Mortgage revenue of $2.782 million was up $360 thousand compared to $2.422 million in the third quarter of 2013. Although the mortgage banking market is significantly influenced by interest rates and federal policies, we have successfully transformed this business as purchase originations now exceed refinance originations. The focus on purchase originations may result in a more seasonal business, particularly in our more northern locations. The 2014 third quarter included gains on sales of SBA loans of $688 thousand, compared to $301 thousand in the same period of 2013. Other recurring sources of fee income increased by smaller but steady amounts.

Non-interest expense for the third quarter of 2014 was $8.765 million, a decrease of $686 thousand, or 7.3%, from $9.451 million in the third quarter of 2013.  Excluding the impact of non-recurring impairment charge and reductions of post-retirement benefits, which netted to $1.326 million in 2013, non-interest expense in the third quarter or 2014 increased by $640 thousand, or 7.9%.  The increase is primarily related to incentive compensation expense related to loan and deposit growth.

In the third quarter of 2014, we recorded income tax expense of $1.017 million equating to an effective tax rate of 33.92%.  During the three month period ending September 30, 2014, the Company recorded increased tax expense equating to an annualized effective tax rate of 32.00%. This adjustment results from a different mix of taxable and non-taxable income than anticipated. In the third quarter of 2013, we recorded a tax benefit of $321 thousand as life insurance proceeds of $1.055 million were not taxable.

Net income available to common shareholders was $1.507 million, or $0.43 per diluted share, for the third quarter of 2014 after accounting for dividends on preferred stock. Dividends on the preferred stock aggregated $474 thousand in the third quarter of 2014 and $330 thousand in the same period of 2013. The dividend associated with $20.1 million of preferred stock increased as the annual dividend rate increased to 9% from 5% in February 2014. Net income available to common shareholders in the third quarter of 2013 was $157 thousand, or $0.05 per diluted share.

Nine Months Ended September 30, 2014

Net interest income for the nine month period ended September 30, 2014 was $19.277 million, an increase of $5.445 million, or 39.4%, from $13.832 million in the same period of 2013. The average balance of earning assets during that period was approximately $829.8 million, compared to approximately $738.3 million in the prior year. The net interest margin during the nine month period of 2014 increased to 3.11%, compared to 2.50% during the same period of 2013. The yield on earning assets was 3.53% in the nine month period ended September 30, 2014, compared to 3.04% in the same period of 2013. The cost of interest bearing liabilities was 0.53%, in the first nine months of 2014, compared to 0.65% in the same period of 2013. As noted above, we repaid $7.5 million of high cost subordinated debentures in the third quarter of 2014 and the cost of core deposits was 0.18% in the first nine months of 2014 compared to 0.25% in the same period of 2013.

A reversal of previous provisions for credit losses increased pre-tax earnings by $800 thousand in the first nine months of 2014. A provision for credit losses of $700 thousand was recorded in the same period in 2013.

Non-interest income for the first nine months of 2014 was $14.459 million, a decrease of $10.218 million, or 41.4%, from $24.677 million in the same period of 2013. Excluding the impact of non-recurring insurance proceeds aggregating $1.055 million in 2013, non-interest income in the first nine months of 2014 decreased by $9.163 million or 38.8% compared to the first nine months of 2013. Non-interest income was particularly influenced by lower interest rates in 2013 as mortgage banking revenues were $8.455 million in the first three quarters of 2014, a decrease of $8.958 million, or 51.4%, compared to the same period in 2013. Gains on sales of investments in the first nine months of 2014 were $528 thousand compared to $1.247 million in the same period of 2013. Gains on sales of SBA loans were $1.688 million in the first nine months of 2014, compared to $1.408 million in the same period of 2013. Gains and losses on sales of loans and investments can vary significantly from period to period. Bank fees and service charges and wealth management revenues grew 6.3% and 14.0%, respectively, reflecting growth of our core banking and wealth management services.

Non-interest expense for the first nine months of 2014 was $25.742 million, a decrease of $2.165 million, or 7.8%, from $27.907 million in the same period of 2013. Excluding the impact of the non-recurring impairment charge and reduction of post-retirement benefits, which netted to $1.326 million in 2013, non-interest expense in the first nine months of 2014 decreased by $839 thousand, or 3.2%. The reduction is primarily driven by lower mortgage related variable costs as well as lower regulatory assessments. Included in other expenses in the first nine months of 2014 is $356 thousand of costs recorded related to the subordinated debt redemption. 

During the nine month period ended September 30, 2014, we recorded tax expense of $2.814 million, which resulted in an effective tax rate of 32.00%. Tax expense of $3.154 million was recorded during the nine month period ended September 30, 2013, which resulted in an effective tax rate of 31.85%. During the third quarter of 2014, the Company increased the effective tax rate from 31.00% to 32.00% due to a different mix of taxable and non-taxable income than anticipated. 

Net income available to common shareholders was $4.659 million, or $1.34 per diluted share, for the nine months ended September 30, 2014 after accounting for dividends on preferred stock. The dividends aggregated $1.321 million in the first nine months of 2014 and $981 thousand in the same period of 2013. The costs associated with $20.1 million of preferred stock increased in February of 2014 when the dividend rate increased to 9% from 5%. Net income available to common shareholders for the first nine months ended September 30, 2013 was $5.767 million, or $1.66 per diluted share.

Assets, Liabilities and Equity

Total assets were $899.7 million at September 30, 2014, an increase of $56.6 million, or 6.7%, compared to $843.1 million at December 31, 2013. The increases in recent periods have been funded primarily by growing deposits in North Dakota as this region is experiencing robust economic conditions.

Loans held for investment, which aggregated $335.4 million at September 30, 2014, $317.9 million at December 31, 2013 and $294.9 million at September 30, 2013, increased by $40.5 million, or 13.7%, since September 30, 2013. The economic prosperity in North Dakota provides tail-winds for long-term loan growth; however, these conditions also result in exceptional liquidity for many businesses and our clients in North Dakota are generally predisposed to repay loans on an accelerated basis.  While such repayments challenge loan growth in the short term, the economic vitality and appetite for loans continues to be greater in North Dakota than other regions.

Total deposits were $774.3 million at September 30, 2014, increasing by $67.8 million, or 9.6%, from September 30, 2013. Core deposit balances were $720.0 million at September 30, 2014, $658.7 million at December 31, 2013 and $641.7 million at September 30, 2013.

The table below shows growth in deposits since 2010.

	September 30,			December 31,			December 31,			December 31,			December 31,
In thousands	2014			2013			2012			2011			2010
ND Bakken Branches	$	172,276		$	166,904		$	144,662		$	125,884		$	97,347
ND Non-Bakken Branches		413,332			382,225			335,452			285,488			281,684
Total ND Branches		585,608			549,129			480,114			411,372			379,031
Other		188,658			174,100			169,490			164,883			282,080
Total Deposits	$	774,266		$	723,229		$	649,604		$	576,255		$	661,111

In August 2014, we redeemed $7.5 million of subordinated debentures. These debentures accrued interest at 12.05%. Redemption costs of $356 thousand were accrued in the second quarter of 2014. The significant reduction in interest expense has a positive impact on earnings and capital.

Trust assets under management or administration decreased to $255.9 million at September 30, 2014, compared to $256.2 million at September 30, 2013. This decrease is a direct reflection of market depreciation, as our wealth management business is capturing wealth being created by the exceptionally strong economic conditions in North Dakota, both in managed agency and retirement services.

Capital

Banks and their bank holding companies operate under separate regulatory capital requirements. At September 30, 2014, BNCCORP's tier 1 leverage ratio was 10.13%, the tier 1 risk-based capital ratio was 20.22%, and the total risk-based capital ratio was 21.48%.

At September 30, 2014, BNCCORP's tangible common equity as a percent of assets was 6.51% compared to 5.79% at December 31, 2013. Common shareholders' equity at September 30, 2014 was $58.7 million and we had preferred stock and subordinated debentures outstanding which aggregated $36.1 million at September 30, 2014.

Book value per common share of the Company was $17.18 as of September 30, 2014, compared to $14.45 at December 31, 2013. Book value per common share, excluding accumulated other comprehensive income, was $16.12 as of September 30, 2014, compared to $14.89 at December 31, 2013.

At September 30, 2014, BNC National Bank had a tier 1 leverage ratio of 10.12%, a tier 1 risk-based capital ratio of 20.34%, and a total risk-based capital ratio of 21.60%. At September 30, 2014, tangible common equity of BNC National Bank was 10.56% of total Bank assets.

In July of 2013, the Federal Reserve issued new regulatory capital standards for community banks which incorporate some of the capital requirements addressed in the Basel III framework and begin to be effective January 1, 2015. We have reviewed estimates of our regulatory capital ratios under the new Basel III framework and expect to be in compliance with these standards.

Asset Quality

Nonperforming assets were $1.2 million at September 30, 2014, down from $6.7 million at December 31, 2013. The ratio of nonperforming assets to total assets was 0.13% at September 30, 2014 and 0.79% at December 31, 2013. Nonperforming loans were $130 thousand at September 30, 2014, down from $5.6 million at December 31, 2013.

The allowance for credit losses was $8.7 million at September 30, 2014, compared to $9.8 million at December 31, 2013. The reduction of the allowance for credit losses reflects stabilized risk in our loan portfolio and the allowance coverage relative to nonperforming and classified loans. While the recent decreases in oil and agricultural commodity prices have yet to have a significant negative effect, prolonged declines could have a detrimental economic impact on the North Dakota economy. The allowance for credit losses as a percentage of total loans at September 30, 2014 was 2.30%, compared to 2.81% at December 31, 2013. The allowance for credit losses as a percentage of loans and leases held for investment at September 30, 2014 was 2.59%, compared to 3.10% at December 31, 2013.

At September 30, 2014, BNC had $9.5 million of classified loans, $130 thousand of loans on non-accrual and $1.1 million of other real estate owned. At December 31, 2013, BNC had $13.5 million of classified loans, $4.7 million of loans on non-accrual and $1.1 million of other real estate owned. At September 30, 2013, BNC had $13.0 million of classified loans, $10.1 million of loans on non-accrual and $2.2 million of other real estate owned.

BNCCORP, INC Adds Director

Mr. Nathan P. Brenna was added to the Company's Board of Directors in September 2014. Mr. Brenna has a distinguished legal background having represented clients across the country for more than a decade. During his legal career, Mr. Brenna represented BNC on several matters and, as a result, has familiarity with BNC's history. In 2007, Mr. Brenna returned to his roots to operate a large farming and ranching operation in northwestern North Dakota. These operations are located near BNC's branches in the oil producing regions of North Dakota where he is also active in community service. Mr. Brenna's background should contribute a valuable perspective on matters of corporate governance, and an insight into local community and business issues.  

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 14 locations. BNC also conducts mortgage banking from 12 offices in Illinois, Kansas, 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 September 30,						For the Nine Months Ended September 30,
(In thousands, except per share data)		2014			2013			2014			2013
SELECTED INCOME STATEMENT DATA
Interest income		$	7,540		$	5,560		$	21,915		$	16,769
Interest expense			791			944			2,638			2,937
Net interest income			6,749			4,616			19,277			13,832
Provision (reduction) for credit losses			(200)			-			(800)			700
Non-interest income			4,814			5,001			14,459			24,677
Non-interest expense			8,765			9,451			25,742			27,907
Income before income taxes			2,998			166			8,794			9,902
Income tax expense (benefit)			1,017			(321)			2,814			3,154
Net income			1,981			487			5,980			6,748
Preferred stock costs			474			330			1,321			981
Net income available to common shareholders		$	1,507		$	157		$	4,659		$	5,767
EARNINGS PER SHARE DATA
Basic earnings per common share		$	0.44		$	0.05		$	1.38		$	1.75
Diluted earnings per common share		$	0.43		$	0.05		$	1.34		$	1.66

 

 

BNCCORP, INC.
CONSOLIDATED FINANCIAL DATA
(Unaudited)
		For the Quarter Ended September 30,						For the Nine Months Ended September 30,
(In thousands, except share data)		2014			2013			2014			2013
ANALYSIS OF NON-INTEREST INCOME
Bank charges and service fees		$	743		$	698		$	2,114		$	1,989
Wealth management revenues			331			302			1,066			935
Mortgage banking revenues			2,782			2,422			8,455			17,413
Gains on sales of loans, net			688			301			1,688			1,408
Gains on sales of securities, net			-			37			528			1,247
Other			270			186			608			630
Subtotal non-interest income			4,814			3,946			14,459			23,622
Life insurance benefits received			-			1,055			-			1,055
Total non-interest income		$	4,814		$	5,001		$	14,459		$	24,677
ANALYSIS OF NON-INTEREST EXPENSE
Salaries and employee benefits		$	4,435		$	3,811		$	13,217		$	13,165
Professional services			848			861			2,237			2,883
Data processing fees			745			717			2,183			2,218
Marketing and promotion			813			718			2,121			1,927
Occupancy			588			597			1,561			1,765
Regulatory costs			158			146			466			680
Depreciation and amortization			315			311			922			928
Office supplies and postage			156			139			495			461
Other real estate costs			27			38			59			164
Other			680			787			2,481			2,390
Subtotal non-interest expense			8,765			8,125			25,742			26,581
Impairment charge			-			1,500			-			1,500
Post retirement benefits reduction			-			(174)			-			(174)
Total non-interest expense		$	8,765		$	9,451		$	25,742		$	27,907
WEIGHTED AVERAGE SHARES
Common shares outstanding (a)			3,386,187			3,299,236			3,364,465			3,299,467
Incremental shares from assumed conversion of options and contingent shares			116,257			178,265			123,716			172,731
Adjusted weighted average shares (b)			3,502,444			3,477,501			3,488,181			3,472,198

(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)		September 30,  2014			December 31,  2013			September 30,  2013
SELECTED BALANCE SHEET DATA
Total assets		$	899,720		$	843,123		$	829,232
Loans held for sale-mortgage banking			42,441			32,870			34,344
Loans and leases held for investment			335,364			317,928			294,876
Total loans			377,805			350,798			329,220
Allowance for credit losses			(8,675)			(9,847)			(9,897)
Investment securities available for sale			456,192			435,719			405,300
Other real estate, net			1,056			1,056			2,186
Earning assets			841,712			787,519			768,732
Total deposits			774,266			723,229			706,495
Core deposits			720,034			658,704			641,725
Other borrowings			38,032			42,399			44,452
Cash and cash equivalents			28,781			18,871			56,728
OTHER SELECTED DATA
Net unrealized gains (losses) in accumulated other comprehensive income		$	3,625		$	(1,468)		$	363
Trust assets under supervision		$	255,929		$	249,691		$	256,178
Total common stockholders' equity		$	58,658		$	48,767		$	49,032
Book value per common share		$	17.18		$	14.45		$	14.75
Book value per common share excluding accumulated other comprehensive income, net		$	16.12		$	14.89		$	14.64
Full time equivalent employees			255			236			252
Common shares outstanding			3,413,854			3,374,601			3,324,584
CAPITAL RATIOS
Tier 1 leverage (Consolidated)			10.13%			10.94%			10.99%
Tier 1 risk-based capital (Consolidated)			20.22%			21.67%			22.60%
Total risk-based capital (Consolidated)			21.48%			23.15%			24.18%
Tangible common equity (Consolidated)			6.51%			5.79%			5.92%
Tier 1 leverage (BNC National Bank)			10.12%			10.06%			10.70%
Tier 1 risk-based capital (BNC National Bank)			20.34%			20.13%			22.17%
Total risk-based capital (BNC National Bank)			21.60%			21.40%			23.43%
Tangible capital (BNC National Bank)			10.56%			9.82%			10.55%

 

 

BNCCORP, INC.
CONSOLIDATED FINANCIAL DATA
(Unaudited)
		For the Quarter Ended September 30,						For the Nine Months Ended September 30,
(In thousands)			2014			2013			2014			2013
AVERAGE BALANCES
Total assets		$	899,665		$	810,301		$	884,649		$	799,101
Loans held for sale-mortgage banking			32,495			46,872			28,215			66,411
Loans and leases held for investment			331,554			277,257			328,464			278,884
Total loans			364,049			324,129			356,679			345,295
Investment securities available for sale			455,368			362,873			444,518			333,761
Earning assets			845,820			750,340			829,801			738,264
Total deposits			772,085			690,320			759,723			679,246
Core deposits			717,708			625,397			700,403			614,239
Total equity			79,138			68,973			75,337			70,312
Cash and cash equivalents			42,986			80,844			45,812			76,583
KEY RATIOS
Return on average common stockholders' equity (a)			10.91%			1.25%			11.75%			16.15%
Return on average assets (b)			0.87%			0.24%			0.90%			1.13%
Net interest margin			3.17%			2.44%			3.11%			2.50%
Efficiency ratio			75.80%			98.27%			76.30%			72.47%
Efficiency ratio (Adjusted) (c)			-			92.86%			-			70.51%
Efficiency ratio (BNC National Bank)			72.89%			92.65%			70.92%			69.36%

(a)	Return on average common stockholders' equity is calculated by using the net income available to common shareholders as the numerator and 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.
(c)	Efficiency ratio is adjusted to exclude insurance receipts and impairment charges for the three and nine month period ending September 30, 2013.

 

 

BNCCORP, INC.
CONSOLIDATED FINANCIAL DATA
(Unaudited)
		As of
(In thousands)		September 30, 2014			December 31, 2013			September 30, 2013
ASSET QUALITY
Loans 90 days or more delinquent and still accruing interest		$	18		$	961		$	57
Non-accrual loans			112			4,656			10,072
Nonperforming loans		$	130		$	5,617		$	10,129
Other real estate, net			1,056			1,056			2,186
Nonperforming assets		$	1,186		$	6,673		$	12,315
Allowance for credit losses		$	8,675		$	9,847		$	9,897
Troubled debt restructured loans		$	5,136		$	8,544		$	8,654
Ratio of nonperforming loans to total loans			0.03%			1.60%			3.08%
Ratio of nonperforming assets to total assets			0.13%			0.79%			1.49%
Ratio of nonperforming loans to total assets			0.01%			0.67%			1.22%
Ratio of allowance for credit losses to loans and leases held for investment			2.59%			3.10%			3.36%
Ratio of allowance for credit losses to total loans			2.30%			2.81%			3.01%
Ratio of allowance for credit losses to nonperforming loans			6,673%			175%			98%

 

 

		For the Quarter						For the Nine Months
(In thousands)		Ended September 30,						Ended September 30,
		2014			2013			2014			2013
Changes in Nonperforming Loans:
Balance, beginning of period		$	3,251		$	10,183		$	5,617		$	10,512
Additions to nonperforming			119			74			198			811
Charge-offs			(7)			(5)			(680)			(909)
Reclassified back to performing			(3,177)			(12)			(3,177)			(19)
Principal payments received			(56)			(111)			(1,131)			(242)
Transferred to repossessed assets			-			-			-			(24)
Transferred to other real estate owned			-			-			(697)			-
Balance, end of period		$	130		$	10,129		$	130		$	10,129

 

 

BNCCORP, INC.
CONSOLIDATED FINANCIAL DATA
(Unaudited)
(In thousands)		For the Quarter Ended September 30,						For the Nine Months Ended September 30,
		2014			2013			2014			2013
Changes in Allowance for Credit Losses:
Balance, beginning of period		$	8,828		$	9,898		$	9,847		$	10,091
Provision (reduction)			(200)			-			(800)			700
Loans charged off			(11)			(16)			(705)			(983)
Loan recoveries			58			15			333			89
Balance, end of period		$	8,675		$	9,897		$	8,675		$	9,897
Ratio of net charge-offs to average total loans			0.013%			0.000%			(0.104)%			(0.259)%
Ratio of net charge-offs to average total loans, annualized			0.052%			(0.001)%			(0.139)%			(0.345)%

 

 

(In thousands)		For the Quarter Ended September 30,						For the Nine Months Ended September 30,
		2014			2013			2014			2013
Changes in Other Real Estate:
Balance, beginning of period		$	1,753		$	2,966		$	1,056		$	5,131
Transfers from nonperforming loans			-			-			697			-
Transfers from premises and equipment			-			800			-			800
Real estate sold			(697)			(1,540)			(697)			(3,705)
Net gains (losses) on sale of assets			-			-			-			-
Provision			-			(40)			-			(40)
Balance, end of period		$	1,056		$	2,186		$	1,056		$	2,186

 

 

		As of
(In thousands)		September 30, 2014			December 31, 2013			September 30, 2013
Other Real Estate:
Other real estate		$	1,754		$	3,250		$	5,120
Valuation allowance			(698)			(2,194)			(2,934)
Other real estate, net		$	1,056		$	1,056		$	2,186

 

 

BNCCORP, INC.
CONSOLIDATED FINANCIAL DATA
(Unaudited)
		As of
(In thousands)		September 30, 2014			December 31, 2013
CREDIT CONCENTRATIONS
North Dakota
Commercial and industrial		$	56,250		$	73,277
Construction			22,609			13,082
Agricultural			18,051			16,847
Land and land development			11,890			10,611
Owner-occupied commercial real estate			28,479			28,435
Commercial real estate			50,280			35,654
Small business administration			1,156			2,188
Consumer			36,061			31,695
Subtotal		$	224,776		$	211,789
Arizona
Commercial and industrial		$	5,495		$	3,021
Construction			124			-
Agricultural			-			-
Land and land development			3,882			5,102
Owner-occupied commercial real estate			1,847			1,571
Commercial real estate			19,190			16,306
Small business administration			24,422			15,502
Consumer			2,869			2,248
Subtotal		$	57,829		$	43,750
Minnesota
Commercial and industrial		$	182		$	794
Construction			-			0
Agricultural			18			21
Land and land development			715			578
Owner-occupied commercial real estate			-			-
Commercial real estate			8,922			15,589
Small business administration			37			91
Consumer			1,315			1,241
Subtotal		$	11,189		$	18,314

 

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SOURCE BNCCORP, INC.

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