BNCCORP, Inc. (BNCC)

[norweger1979]

BNCCORP, INC. Reports First Quarter Net Income Of $1.4 Million, Or $0.40 Per Diluted Share

2016 First Quarter Highlights

- Book value per common share was $21.31 at March 31, 2016

- Nonperforming assets were 0.10% of total assets as of March 31, 2016

- Loans held for investment increased in first quarter by 5% to $399 million

- Net income available to common shareholders in the 2016 first quarter was $1.4 million compared to $1.6 million and $2.7 million in the fourth and first quarters of 2015, respectively



BISMARCK, N.D., April 28, 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 first quarter ended March 31, 2016.

Net income available to common shareholders in the 2016 first quarter was $1.415 million, or $0.40 per diluted share, compared to $2.739 million, or $0.78 per diluted share, in the first quarter of 2015. The decrease in earnings is primarily attributable to lower noninterest income.

Noninterest income in the first quarter of 2016 was $2.0 million less in the same period in 2015 as gains on asset sales decreased by $866 thousand and mortgage banking revenues receded from extraordinary levels experienced in early 2015. Non-interest expenses increased by 1.9% in the first three months of 2016 compared to the same period of 2015 as decreases in compensation expense were offset by increases in other operating costs. Net interest income in the 2016 first quarter was $331 thousand less than the same quarter in 2015 due to $140 thousand of costs incurred to prepay $18.8 million of brokered deposits and new interest on subordinated debt issued in late 2015 to redeem preferred stock.

The provision for credit losses was $0 in the first quarter of 2016 and 2015. The ratio of nonperforming assets to total assets was 0.10% at March 31, 2016 compared to 0.09% at December 31, 2015.

Book value per common share at March 31, 2016 was $21.31 compared to $20.12 and $19.62 at December 31, 2015 and March 31, 2015, respectively. Excluding accumulated other comprehensive income, book value per common share at March 31, 2016 was $19.26 compared to $18.93 and $17.52 at December 31, 2015 and March 31, 2015, respectively.

First Quarter 2016 comparison to Fourth Quarter 2015

Net interest income in the 2016 first quarter was $59 thousand higher than the 2015 fourth quarter. Interest income in 2016 first quarter increased $252 thousand or 3.6% primarily due to increased loans held for investment. As noted above, interest expense was higher in the first quarter of 2016 due to a $140 thousand charge for costs to redeem higher rate callable brokered certificates of deposit and new interest on subordinated debt issued in late 2015 to redeem preferred stock. Excluding the charge to redeem brokered deposits, net interest income increased $199 thousand or 3.2% from the fourth quarter of 2015.

Non-interest income increased $324 thousand, or 6.1%, in the 2016 first quarter compared to the 2015 fourth quarter driven by higher mortgage revenue in early 2016. Non-interest expense rose from the fourth quarter of 2015 by $606 thousand due to compensation costs related to increases in loans held for investment which began late in the fourth quarter of 2015 and continued in the first quarter of 2016.

Income tax expense in the first quarter of 2016 was $192 thousand higher than the last quarter of 2015 as an adjustment to the estimated effective tax rate was recorded late in 2015. Preferred stock costs were $0 in the first quarter of 2016 due to the redemption of preferred stock in late 2015.

Timothy J. Franz, BNC President and Chief Executive Officer, said, "We continued to create value this quarter as demonstrated by the increase in book value per share to $21.31 per share. We maintained exceptional credit quality metrics despite headwinds in the energy and agricultural industries in North Dakota while mortgage banking revenues continue to be elevated. We believe the resiliency of our balance sheet is improving as we have increased tangible common equity to 7.93% and maintained healthy total risk weighted regulatory ratios of 19.03% at the holding company and 17.81% at BNC Bank."

Mr. Franz continued, "In recent months, we have generated solid growth in our loans held for investment which we expect to be a fundamental driver of value in future periods. We remain focused on meeting the financial needs of our customers and being active in the communities we serve. Our strong balance sheet, improving capital structure and dedicated employees provide a solid foundation as we look forward."

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http://www.bnccorp.com/54304/mirror/files/Qtr_1_2016_Press_Release_Final_.pdf

Qtr. profits declining/slowing but still a profitable bank and value, IMO! (see 2015 annual report 5 year table & 2015 qtr. table)