BNCCORP, Inc. (BNCC)

[Enterprising Investor]

Finally, something can be done with the 12.05 percent series.

We plan to redeem $7.5 million of subordinated debentures in the third quarter of 2014. These debentures accrue interest at 12.05%. Redemption costs of $356 thousand were accrued in the second quarter of 2014. As a result of the redemption, we expect the full year reduction of interest expense to be approximately $900 thousand in 2015. After the redemption, we will continue to remain in excess of well capitalized levels. Furthermore, the significant reduction in interest expense will have a positive impact on future earnings and capital.