Press Release: BNCCORP, INC. Reports Second Quarter Net Income Of $1.4 Million, Or $0.41 Per Diluted Share
BNCCORP, INC. Reports Second Quarter Net Income Of $1.4 Million, Or $0.41 Per Diluted Share
PR Newswire
BISMARCK, N.D., July 27, 2017
2017 Second Quarter Highlights
-- Net income in the 2017 second quarter was $1.4 million, compared to $2.0 million in the second quarter of 2016
-- Net interest income increased $557 thousand, or 8.6%, compared to the second quarter of 2016
-- Non-interest expense decreased by $497 thousand compared to the second quarter of 2016
-- Non-interest income decreased by $2.3 million due to lower mortgage banking revenues
-- Loans held for investment increased $26.5 million, or 6.6%, from June 30, 2016 to June 30, 2017
-- Total assets remain above $1.0 billion at June 30, 2017 due to robust deposit growth of $124.4 million in 2017
-- Non-performing assets were 0.22% of total assets as of June 30, 2017
-- Book value per share at June 30, 2017 was $22.80, compared to $21.47 at December 31, 2016
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 Illinois, Kansas, Missouri, Minnesota, Arizona and North Dakota, today reported financial results for the second quarter ended June 30, 2017.
Net income in the second quarter of 2017 was $1.435 million, a decrease of $600 thousand versus $2.035 million in the same period of 2016. Second quarter 2017 diluted earnings per share was $0.41, compared to $0.58 in the second quarter of 2016. The comparison between the second quarters of 2017 and 2016 mainly reflect higher net interest income and lower expenses, offset by lower non-interest income.
Net interest income in the 2017 second quarter increased by $557 thousand, or 8.6%, from the same quarter in 2016, due primarily to the growth of loans held for investment and higher yields on higher investment balances.
Non-interest income in the second quarter of 2017 decreased by $2.338 million, or 31.2%, from the same period in 2016, due to lower mortgage revenues and lower gains on sales of assets. Other income increased due to the confidential settlement of a litigation matter.
Non-interest expense in the second quarter of 2017 decreased $497 thousand, or 4.7%, compared to the second quarter of the prior year primarily due to decreases in salary and benefits and professional services costs.
The provision for credit losses was $150 thousand in the second quarter of 2017, a reduction from $400 thousand in the second quarter of 2016. The ratio of nonperforming assets to total assets decreased to 0.22% at June 30, 2017, from 0.29% at December 31, 2016. The allowance for loan losses was 1.85% of loans held for investment at June 30, 2017, compared to 2.00% at December 31, 2016.
Book value per common share at June 30, 2017 rose to $22.80, from $21.47 at December 31, 2016 and $22.35 at June 30, 2016. Excluding accumulated other comprehensive income, book value per common share at June 30, 2017 was $21.71, compared to $20.98 at December 31, 2016 and $19.87 at June 30, 2016.
Management Comments
Timothy J. Franz, BNC President and Chief Executive Officer, said, "The fundamentals of BNC's banking business were stronger, reflected in growth of total assets, loans and deposits. In particular, the exceptional growth in deposits during the first half of 2017 benefited shareholders as the value of a banking franchise increases when deposits grow. Growth in loans held for investment accelerated toward the end of the second quarter, resulting in a 6.6% increase since the middle of 2016. The growth in our banking operation pushed total assets above $1 billion and resulted in an 8.6% increase in net interest income in the second quarter when compared to the second quarter in 2016. We continue to focus on mortgage banking results and these operations improved as the second quarter of 2017 progressed."
Mr. Franz continued, "Overall, we are pleased that earnings in the second quarter improved compared to the first quarter of 2017 and that our credit quality remains good. Our book value per share has increased $1.33 since the beginning of the year. In fact, from year-end 2010 to June 30, 2017, book value per common share has increased $17.71, or 347.9%, equating to a 23.7% compound annual rate of growth, and we look forward to continue creating value for our shareholders."
Second Quarter 2017 Comparison to Second Quarter 2016
Net interest income for the second quarter of 2017 was $7.039 million, an increase of $557 thousand, or 8.6%, from $6.482 million in the same period of 2016. Overall, the net interest margin decreased slightly to 2.96% in the second quarter of 2017 from 3.01% in the second quarter of 2016.
Interest income increased by $555 thousand, or 7.6%, to $7.901 million, for the quarter ended June 30, 2017, compared to $7.346 million in the second quarter of 2016. This increase is the result of higher yields and balances of taxable investments, loans held for investment, and funds held at the Federal Reserve resulting from successful deposit generation. The average balance of interest earning assets increased by $87.0 million. The average balance of loans held for investment increased by $13.5 million, resulting in $105 thousand more interest income. The average balance of investment securities increased by $16.7 million, while the yield on such investments increased 0.44%, resulting in $397 thousand more interest income. These increases were partially offset by the $21.4 million decrease in the average balances of mortgage loans held for sale. The $79.7 million increase in the average balance of interest bearing cash balances yielded 1.07% and earned $216 thousand in the second quarter 2017. The yield on average interest earning assets decreased to 3.31% in the second quarter of 2017 from 3.42% in the second quarter of 2016 due to the higher percentage of earning assets held at the Federal Reserve than in the prior year second quarter.
Interest expense in the second quarter of 2017 was $862 thousand, approximately flat from the same period in 2016 despite a significant increase in deposits. Average interest bearing deposit balances increased $106.6 million while the average balance of FHLB short-term advances decreased $49.7 million. The cost of interest bearing liabilities decreased to 0.46% in the current quarter compared to 0.50% in the same period of 2016. The lower cost of funds is a product of redeeming brokered certificates of deposits in 2016 and no outstanding FHLB advances in the quarter, which collectively offset the impact of higher balances and rates of money market accounts and consumer certificates of deposits.
Provision for credit losses was $150 thousand in the second quarter of 2017 and $400 thousand in the second quarter of 2016.
Non-interest income for the second quarter of 2017 was $5.157 million, a decrease of $2.338 million, or 31.2%, from $7.495 million in the second quarter of 2016. Mortgage banking revenues were $3.072 million in the second quarter of 2017, compared to $5.354 million in the second quarter of 2016. During the second quarter 2017, periods of interest rate volatility had the dual effects of dampening mortgage volume and compressing loan margins. Mortgage volume and margins began to show improvement toward the latter part of the second quarter 2017. Gains on sales of loans and investment securities aggregated $246 thousand in the second quarter 2017, compared to $615 thousand in the prior year second quarter, as these revenues can vary significantly from period to period. Other income increased due to the confidential settlement of a litigation matter.
Non-interest expense for the second quarter of 2017 decreased $497 thousand, or 4.7%, to $10.131 million, from $10.628 million in the second quarter of 2016. Salaries and benefits decreased $399 thousand from the second quarter 2016. The number of full time equivalent employees ("FTEs") at June 30, 2017 was 268, down by 23 FTE's, or 7.9%, since December 31, 2016. Employee headcount decreased 15 during the second quarter of 2017 and 37, or 8.8%, since December 31, 2016. Much of the headcount decrease related to mortgage support staff as the business is being right-sized to fit current revenues. Professional services in the second quarter of 2017 were down $150 thousand, or 11.8%, due to reduced mortgage banking activities.
In the second quarter of 2017, income tax expense was $480 thousand, compared to $914 thousand in the second quarter of 2016. The effective tax rate was 25.1% in the second quarter of 2017, compared to 31.0% in the same period of 2016. The decrease in the effective tax rate is primarily due to a higher percentage of pretax income from tax-exempt securities as compared to the prior year second quarter.
Net income was $1.435 million, or $0.41 per diluted share, for the second quarter of 2017. Net income in the second quarter of 2016 was $2.035 million, or $0.58 per diluted share.
Six Months Ended 2017 Comparison to Six Months Ended 2016
Net interest income in the first half of 2017 was $13.572 million, an increase of $814 thousand, or 6.4%, from $12.758 million in the same period of 2016. Overall, the net interest margin increased to 3.02% in the first six months of 2017 from 3.01% in the first six months of 2016.
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Interest income increased by $694 thousand, or 4.8%, to $15.215 million, in the six-month period ended June 30, 2017, compared to $14.521 million in the six-month period ended June 30, 2016. This increase is the result of higher yields on taxable investments, higher average balances of loans held for investment, and increased funds held at the Federal Reserve. The yield on average interest earning assets decreased to 3.38% in the six-month period ended June 30, 2017 from 3.43% in the same period of 2016 due to the higher proportion of earning assets being held at the Federal Reserve compared to the prior year. The average balance of interest earning assets increased by $52.9 million. The average balance of loans held for investment increased by $22.9 million, equating to $375 thousand of additional interest income, while the average balance of mortgage loans held for sale was $17.2 million lower than the same period of 2016. The average balance of investment securities was $1.1 million lower in the first half of 2017 compared to the first half of 2016. The average balance of cash held at the Federal Reserve increased by $49 million when comparing the two periods, and yielded an additional $250 thousand during the first half of 2017.
Interest expense in the first half of 2017 was $1.643 million, a decrease of $120 thousand from the same period in 2016. The cost of interest bearing liabilities decreased to 0.46% in the first half of 2017 compared to 0.52% in the same period of 2016. In the first half of 2016, the Company redeemed the remaining balances of outstanding brokered certificates of deposit; thus, we incurred brokered certificate of deposit interest expense of $461 thousand during the first half of 2016 that did not recur in 2017. Interest expense increased in other categories of deposits, driven largely by increased volume and cost of consumer certificates of deposit and money market accounts. Due to lower mortgage loan funding levels and increased deposit balances in the first half of 2017, the Company's FHLB short-term advances outstanding averaged only $3.8 million compared to $30.8 million in the first half of 2016.
Provision for credit losses was $150 in the first half of 2017 and $400 thousand in the first half of 2016.
Non-interest income for the first six months of 2017 was $9.904 million, a decrease of $3.242 million, or 24.7%, from $13.146 million in the first six months of 2016. Mortgage banking revenues were $5.576 million in the first half of 2017, compared to $9.729 million in the first half of 2016, a decrease of $4.153 million, or 42.7%. During the first half of 2016, we experienced historically higher loan volume, as interest rates were favorable. Mortgage banking revenues were lower in the first half of 2017 as rates moved higher, dampening demand and compressing margins. Mortgage volume began to rise in the first quarter 2017, and margins began to show improvement toward the latter part of the second quarter of 2017. Gains on sales of loans and investment securities aggregated $1.059 million in the first six months of 2017, compared to $660 thousand in the first six months of the prior year due to increased SBA loan production. Gains on sale of assets can vary significantly from period to period.
Non-interest expense for the first six months of 2017 decreased $485 thousand, or 2.4%, to $19.989 million, from $20.474 million in the first six months of 2016. Salaries and employee benefits decreased $412 thousand from the first six months of 2016. The number of full time equivalent employees ("FTEs") at June 30, 2017 was 268, down by 23 FTE's, or 7.9%, since December 31, 2016. In the first half of 2017 employee headcount was reduced by 37 or 8.8%, as the company is reducing staff in the mortgage banking operations. Mortgage related professional expenses decreased compared to the first half of 2016 by approximately $392 thousand.
During the six-month period ended June 30, 2017, income tax expense was $841 thousand, compared to $1.580 million in the first half of 2016. The effective tax rate was 25.2% in the first half of 2017, compared to 31.4% in the same period of 2016. The decrease is primarily due to a higher percentage of pretax income from tax-exempt securities.
Net income was $2.496 million, or $0.70 per diluted share, for the six months ended June 30, 2017. Net income in the first six months of 2016 was $3.450 million, or $0.98 per diluted share.
Assets, Liabilities and Equity
Total assets were $1.0 billion at June 30, 2017, an increase of $91.1 million, or 10.0%, compared to $910.4 million at December 31, 2016. Loans held for investment aggregated $426.2 million at June 30, 2017, an increase of $11.5 million, or 2.8%, since December 31, 2016, while loans held for sale as of June 30, 2017 were down $1.9 million from December 31, 2016. Investment balances increased $40.4 million from year-end 2016. Cash and cash equivalents balances increased $44.1 million due to a significant deposit received in the first quarter 2017.
Total deposits were $877.1 million at June 30, 2017, compared to $752.6 million at December 31, 2016. Core deposits, which include recurring customer repurchase agreement balances, have increased by $126.0 million, or 16.5%, to $891.2 million at June 30, 2017 from $765.1 million as of December 31, 2016. Core deposit growth in the non-Bakken North Dakota branches was $103.0 million, or 25.9%, and a significant portion of this growth was predominantly the result of significant cash generating transactions by our customers during the first quarter of 2017. BNC anticipates that a substantial portion of these deposit balances will be redeployed by our customers as 2017 continues. In 2016, BNC generally utilized Federal Home Loan Bank short-term advances as flexible borrowings. In early 2017, such advances were paid down as deposits increased.
The table below shows total deposits since 2013:
December December December December
June 30, 31, 31, 31, 31,
(In Thousands) 2017 2016 2015 2014 2013
ND Bakken
Branches $184,692 $178,677 $190,670 $178,565 $166,904
ND Non-Bakken
Branches 485,876 384,476 388,630 433,129 382,225
Total ND
Branches 670,568 563,153 579,300 611,694 549,129
Brokered
Deposits - - 33,363 53,955 64,525
Other 206,485 189,474 167,786 145,582 109,575
Total Deposits $877,053 $752,627 $780,449 $811,231 $723,229
Trust assets under management or administration increased 8.6%, or $22.5 million, to $285.6 million at June 30, 2017, compared to $263.1 million at June 30, 2016.
Capital
Banks and bank holding companies operate under separate regulatory capital requirements.
At June 30, 2017, our capital ratios exceeded all regulatory capital thresholds, including thresholds that incorporate fully phased-in conservation buffers.
Due to significant deposit growth and related increase in funds held at the Federal Reserve, our Tier 1 leverage ratios and tangible common equity decreased since the beginning of the year. Risk based capital ratios did not experience similar decreases as funds held at the Federal Reserve are assigned a zero percent risk weighting in determining risk-weighted assets. A summary of our capital ratios at June 30, 2017 and December 31, 2016 is presented below:
June 30, December 31,
2017 2016
BNCCORP, INC (Consolidated)
Tier 1 leverage 8.90% 9.47%
Total risk based capital 19.77% 19.96%
Common equity tier 1 risk based capital 13.87% 13.90%
Tier 1 risk based capital 16.66% 16.78%
Tangible common equity 7.85% 8.13%
BNC National Bank
Tier 1 leverage 9.15% 9.67%
Total risk based capital 18.37% 18.41%
Common equity tier 1 risk based capital 17.12% 17.16%
Tier 1 risk based capital 17.12% 17.16%
The common equity tier 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. As this ratio is based on total period end assets, it has decreased from prior periods due the significant deposit growth.
The Company routinely evaluates the sufficiency of capital in order to ensure compliance with regulatory capital standards and to provide a source of strength for the Bank. We manage capital by assessing the composition of capital and the amounts available for growth, risk or other purposes.
Book value per common share of the Company was $22.80 as of June 30, 2017, compared to $21.47 at December 31, 2016. Book value per common share, excluding accumulated other comprehensive income, was $21.71 as of June 30, 2017, compared to $20.98 at December 31, 2016.
Asset Quality
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The allowance for credit losses was $7.9 million at June 30, 2017, compared to $8.3 million at December 31, 2016. The allowance for credit losses as a percentage of total loans at June 30, 2017 was 1.70%, compared to 1.82% at December 31, 2016. The allowance as a percentage of loans and leases held for investment at June 30, 2017 was 1.85%, and at December 31, 2016 was 2.00%.
Nonperforming assets were $2.2 million at June 30, 2017, down from $2.7 million at December 31, 2016. The ratio of nonperforming assets to total assets was 0.22% at June 30, 2017 and 0.29% at December 31, 2016. Nonperforming loans were $2.1 million at June 30, 2017, down from $2.4 million at December 31, 2016.
At June 30, 2017, BNC had $11.7 million of classified loans, $2.1 million of loans on non-accrual, and no other real estate owned. At December 31, 2016, BNC had $12.9 million of classified loans, $2.4 million of loans on non-accrual, $214 thousand of other real estate owned, and $4 thousand of repossessed assets. BNC had $7.3 million of potentially problematic loans, which are risk rated "watch list", at June 30, 2017, compared with $9.4 million as of December 31, 2016.
The economic activity in western North Dakota continues to be affected by challenging conditions in the agricultural and energy industries. Prolonged periods of lower agricultural and energy prices as well as more recent drought conditions in the region could have an adverse economic impact on the North Dakota economy, commodity dependent businesses, and our loan portfolio.
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 17 locations. BNC also conducts mortgage banking from 14 offices in 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 U.S. 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 For the Six Months
Ended June 30, Ended June 30,
(In thousands,
except per share
data) 2017 2016 2017 2016
SELECTED INCOME
STATEMENT DATA
Interest income $ 7,901 $7,346 $ 15,215 $14,521
Interest expense 862 864 1,643 1,763
Net interest income 7,039 6,482 13,572 12,758
Provision for credit
losses 150 400 150 400
Non-interest income 5,157 7,495 9,904 13,146
Non-interest expense 10,131 10,628 19,989 20,474
Income before income
taxes 1,915 2,949 3,337 5,030
Income tax expense 480 914 841 1,580
Net income $ 1,435 $2,035 $ 2,496 $3,450
EARNINGS PER SHARE
DATA
Basic earnings per
common share $ 0.41 $0.59 $ 0.72 $1.00
Diluted earnings per
common share $ 0.41 $0.58 $ 0.70 $0.98
BNCCORP, INC.
CONSOLIDATED FINANCIAL DATA
(Unaudited)
For the Quarter For the Six Months
Ended June 30, Ended June 30,
(In thousands,
except per
share data) 2017 2016 2017 2016
ANALYSIS OF
NON-INTEREST
INCOME
Bank charges and
service fees $671 $689 $1,359 $1,363
Wealth
management
revenues 411 395 872 783
Mortgage banking
revenues 3,072 5,354 5,576 9,729
Gains on sales
of loans, net 69 178 612 223
Gains on sales
of investments,
net 177 437 447 437
Other 757 442 1,038 611
Total
non-interest
income $5,157 $7,495 $9,904 $13,146
ANALYSIS OF
NON-INTEREST
EXPENSE
Salaries and
employee
benefits $5,130 $5,529 $10,369 $10,781
Professional
services 1,116 1,266 2,169 2,224
Data processing
fees 990 947 1,870 1,807
Marketing and
promotion 1,057 979 1,783 1,902
Occupancy 574 545 1,194 1,069
Regulatory costs 131 167 263 334
Depreciation and
amortization 409 378 809 721
Office supplies
and postage 160 173 327 349
Other real
estate costs (23) 20 (21) 22
Other 587 624 1,226 1,265
Total
non-interest
expense $10,131 $10,628 $19,989 $20,474
WEIGHTED
AVERAGE SHARES
Common shares
outstanding
(a) 3,473,025 3,447,687 3,472,379 3,444,242
Incremental
shares from
assumed
conversion of
options and
contingent
shares 67,239 74,346 68,042 74,702
Adjusted
weighted
average shares
(b) 3,540,264 3,522,033 3,540,421 3,518,944
(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 June 30, December 31, June 30,
time equivalent data) 2017 2016 2016
SELECTED BALANCE SHEET DATA
Total assets $1,001,505 $ 910,400 $926,978
Loans held for sale-mortgage
banking 37,745 39,641 59,141
Loans and leases held for
investment 426,210 414,673 399,671
Total loans 463,955 454,314 458,812
Allowance for credit losses (7,898) (8,285) (8,725)
Investment securities
available for sale 440,542 400,136 415,499
Other real estate, net and
repossessed assets 13 218 225
Earning assets 945,108 851,564 871,479
Total deposits 877,053 752,627 757,039
Core deposits (1) 891,175 765,138 756,520
Other borrowings 39,135 75,523 81,549
Cash and cash equivalents 55,173 11,113 9,855
OTHER SELECTED DATA
Net unrealized gains in
accumulated other
comprehensive income $3,764 $ 1,683 $8,539
Trust assets under
supervision $285,627 $ 273,643 $263,087
Total common stockholders'
equity $78,808 $ 74,195 $77,047
Book value per common share $22.80 $ 21.47 $22.35
Book value per common share
excluding accumulated other
comprehensive income, net $21.71 $ 20.98 $19.87
Full time equivalent
employees 268 291 288
Common shares outstanding 3,456,192 3,456,008 3,447,061
CAPITAL RATIOS
Common equity Tier 1
risk-based capital
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(Consolidated) 13.87% 13.90% 13.34%
Tier 1 leverage
(Consolidated) 8.90% 9.47% 9.07%
Tier 1 risk-based capital
(Consolidated) 16.66% 16.78% 16.28%
Total risk-based capital
(Consolidated) 19.77% 19.96% 19.48%
Tangible common equity
(Consolidated) 7.85% 8.13% 8.29%
Common equity Tier 1
risk-based capital (Bank) 17.12% 17.16% 17.04%
Tier 1 leverage (Bank) 9.15% 9.67% 9.50%
Tier 1 risk-based capital
(Bank) 17.12% 17.16% 17.04%
Total risk-based capital
(Bank) 18.37% 18.41% 18.30%
Tangible common equity
(Bank) 9.63% 10.04% 10.39%
(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 For the Six Months
Ended June 30, Ended June 30,
(In thousands) 2017 2016 2017 2016
AVERAGE BALANCES
Total assets $1,008,782 $919,300 $ 961,531 $905,823
Loans held for
sale-mortgage
banking 28,667 50,096 26,462 43,634
Loans and leases
held for
investment 413,674 400,158 414,899 391,976
Total loans 442,341 450,254 441,361 435,610
Investment
securities
available for
sale 433,823 417,171 416,916 418,053
Earning assets 952,133 865,164 904,943 852,014
Total deposits 886,365 748,049 837,478 754,579
Core deposits 899,994 746,370 850,291 746,385
Total equity 77,344 74,555 75,979 73,361
Cash and cash
equivalents 89,745 9,900 60,317 11,412
KEY RATIOS
Return on average
common
stockholders'
equity (a) 7.75% 12.05% 6.83% 10.37%
Return on average
assets (b) 0.57% 0.89% 0.52% 0.77%
Net interest
margin 2.96% 3.01% 3.02% 3.01%
Efficiency ratio 83.15% 76.04% 85.19% 79.04%
Efficiency ratio
(BNC National
Bank) 80.05% 73.41% 81.80% 75.66%
(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
June 30, December 31, June 30,
(In thousands) 2017 2016 2016
ASSET QUALITY
Loans 90 days or more delinquent
and still accruing interest $ - $ 20 $ -
Non-accrual loans 2,142 2,425 2,341
Total nonperforming loans $ 2,142 $ 2,445 $ 2,341
Other real estate, net and
repossessed assets 13 218 225
Total nonperforming assets $ 2,155 $ 2,663 $ 2,566
Allowance for credit losses $ 7,898 $ 8,285 $ 8,725
Troubled debt restructured loans $ 1,932 $ 2,038 $ 2,084
Ratio of total nonperforming
loans to total loans 0.46% 0.54% 0.51%
Ratio of total nonperforming
assets to total assets 0.22% 0.29% 0.28%
Ratio of nonperforming loans to
total assets 0.21% 0.27% 0.25%
Ratio of allowance for credit
losses to loans and leases held
for investment 1.85% 2.00% 2.18%
Ratio of allowance for credit
losses to total loans 1.70% 1.82% 1.90%
Ratio of allowance for credit
losses to nonperforming loans 369% 339% 373%
For the Quarter For the Six Months
Ended June 30, Ended June 30,
(In thousands) 2017 2016 2017 2016
Changes in
Nonperforming
Loans:
Balance, beginning of
period $ 2,672 $672 $ 2,445 $565
Additions to
nonperforming 159 1,980 716 2,135
Charge-offs (330) (64) (536) (95)
Reclassified back to
performing - (175) - (175)
Principal payments
received (319) (72) (443) (89)
Transferred to other
real estate owned (40) - (40) -
Balance, end of
period $ 2,142 $2,341 $ 2,142 $2,341
BNCCORP, INC.
CONSOLIDATED FINANCIAL DATA
(Unaudited)
For the Quarter For the Six Months
Ended June 30, Ended June 30,
(In thousands) 2017 2016 2017 2016
Changes in
Allowance for
Credit Losses:
Balance,
beginning of
period $8,040 $8,479 $ 8,285 $8,611
Provision 150 400 150 400
Loans charged
off (337) (174) (590) (313)
Loan recoveries 45 20 53 27
Balance, end of
period $7,898 $8,725 $ 7,898 $8,725
Ratio of net
charge-offs to
average total
loans (0.066)% (0.034)% (0.122)% (0.066)%
Ratio of net
charge-offs to
average total
loans,
annualized (0.264)% (0.137)% (0.243)% (0.131)%
For the Quarter For the Six Months
Ended June 30, Ended June 30,
(In thousands) 2017 2016 2017 2016
Changes in
Other Real
Estate:
Balance,
beginning of
period $214 $242 $ 214 $242
Transfers from
nonperforming
loans 40 - 40 -
Real estate sold (264) - (264) (4)
Net gains on
sale of assets - - - 4
(Reduction)
Provision 10 (17) 10 (17)
Balance, end of
period $- $225 $ - $225
As of
June 30, December 31, June 30,
(In thousands) 2017 2016 2016
Other Real
Estate:
Other real
estate $- $ 954 $954
Valuation
allowance - (740) (729)
Other real
estate, net $- $ 214 $225
BNCCORP, INC.
CONSOLIDATED FINANCIAL DATA
(Unaudited)
As of
June 30, June 30,
(In thousands) 2017 December 31, 2016 2016
CREDIT CONCENTRATIONS
North Dakota
Commercial and industrial $41,824 $ 41,769 $44,661
Construction 3,908 6,819 10,259
Agricultural 24,558 19,351 16,972
Land and land development 9,112 9,674 10,405
Owner-occupied commercial
real estate 44,885 45,350 37,864
Commercial real estate 106,541 100,975 87,673
Small business
administration 4,406 4,512 4,825
Consumer 50,652 44,267 43,043
Subtotal loans held for
investment $285,886 $ 272,717 $255,702
Consolidated
Commercial and industrial $53,953 $ 54,037 $61,892
Construction 11,365 12,215 14,259
Agricultural 25,240 20,273 17,496
Land and land development 15,178 15,982 16,189
Owner-occupied commercial
real estate 49,518 49,294 44,035
Commercial real estate 176,210 171,972 165,891
Small business
administration 27,446 31,518 27,512
Consumer 66,902 59,183 52,074
Total loans held for
investment $425,812 $ 414,474 $399,348
View original content:http://www.prnewswire.com/news-releases/bnccorp-inc-reports-second-quarter-net-income-of-14-million-or-041-per-diluted-share-300495124.html
SOURCE BNCCORP, INC.
/CONTACT: TIMOTHY J. FRANZ, CEO, TELEPHONE: (612) 305-2213, DANIEL COLLINS, CFO, TELEPHONE: (612) 305-2210
/Web site: http://www.bnccorp.com
(END) Dow Jones Newswires
July 27, 2017 07:00 ET (11:00 GMT)
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*DJ BNCCorp Inc 2Q Net $1.44M >BNCC
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