BNCCORP, INC. Reports Fourth Quarter Net Income Of $1.9 Million, Or $0.44 Per Diluted Share - NEWS10 ABC: Albany, New York News, Weather, Sports

BNCCORP, INC. Reports Fourth Quarter Net Income Of $1.9 Million, Or $0.44 Per Diluted Share

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SOURCE BNCCORP, INC.

2013 Fourth Quarter and Full Year Overview

- Net interest income increases by $1.4 million, or 29.0%, compared to 2012 fourth quarter

- Decrease in mortgage banking revenues partially offset by income on Small Business Investment Company (SBIC) investments

- Non-interest expenses decrease by $895 thousand, or 10.0% compared to 2012 fourth quarter

- Provision for credit losses is $0 for the third consecutive quarter

- Nonperforming assets decrease to $6.7 million, or 0.79% of total assets, compared to $15.6 million or 2.03% of assets at the end of 2012

- Full year return on assets is 1.07%

- Full year return on common equity is 15.15%

- Book value per common share is $14.45 at December 31, 2013

BISMARCK, N.D., Jan. 24, 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, Nebraska, Missouri, Minnesota, Arizona and North Dakota, today reported financial results for the fourth quarter ended December 31, 2013.  

Net income for the 2013 fourth quarter was $1.879 million, or $0.44 per diluted share. This compared to net income of $4.981 million, or $1.34 per diluted share, in the fourth quarter of 2012. Results for the fourth quarter of 2013 include lower non-interest income largely due to a decrease in mortgage banking revenues. This was partially offset by significantly higher net interest income, income on SBIC investments and lower non-interest expenses when compared to the prior year fourth quarter. The provisions for credit losses were $0 in the fourth quarters of 2013 and 2012 as credit quality improved. Nonperforming assets decreased to $6.7 million, or 0.79% of total assets, at December 31, 2013, compared to $15.6 million, or 2.03% of total assets, at December 31, 2012.

Timothy J. Franz, BNCCORP President and Chief Executive Officer, said, "Overall, we are satisfied with the fourth quarter earnings. Our recent focus on growing loans held for investment has led to rising net interest income, while mortgage banking revenues have been affected by the rise in market interest rates, as expected. Realized distributions on longer term investments contributed to the recent quarter's results. BNC's performance in 2013 also was highlighted by a continued sharp improvement in asset quality and a solid capital base to support future growth. While it will take time to achieve our loan growth and net interest income objectives, initial results are promising and we look forward to continuing the momentum in 2014."

Mr. Franz continued, "Results for the full year of 2013 represented a 1.07% return on assets and 15.15% return on common equity, which compare favorably to our peers. In 2014 mortgage banking revenues will be harder to generate. To increase revenues we are adding producers to our talented banking and mortgage banking teams and their efforts should benefit from the strong North Dakota economy. We will continue to work hard at building our core bank to achieve long term results for our shareholders and the communities we are fortunate to serve."

Fourth Quarter Results

Net interest income for the fourth quarter of 2013 was $6.013 million, an increase of $1.353 million, or 29.0%, from $4.660 million in the same period of 2012. Interest income rose as the average balance of interest earning assets increased by $101.9 million when compared to the fourth quarter of 2012. Importantly, the average loans held for investment increased $13.3 million, or 4.6%, compared to the prior year quarter as initiatives to grow loans are beginning to demonstrate results. On average, loans held for sale decreased by $51.2 million when compared to the fourth quarter of 2012. This lower balance was more than offset by the increase in investment securities. The yield on earning assets increased to 3.55% in the fourth quarter of 2013, compared to 3.46% in the fourth quarter of 2012. The fourth quarter 2013 yield on assets was aided by approximately $337 thousand when a previously nonaccrual loan became current as anticipated.  The net interest margin for the fourth quarter increased to 3.07%, compared to 2.75% in the same period of 2012.

Interest expense decreased despite exceptional growth in deposits, as we have been able to lower the rates paid on deposits. The cost of interest bearing liabilities declined to 0.59% in the current quarter, compared to 0.89% in the same period of 2012.

The provision for loan losses was $0 in the fourth quarters of 2013 and 2012. The absence of provisions for credit losses reflects stabilized risk in our loan portfolio.

Non-interest income for the fourth quarter of 2013 was $4.608 million, a decrease of $5.054 million, or 52.3% from $9.662 million in the fourth quarter of 2012. The decrease primarily relates to a decline in mortgage banking revenues, which aggregated $1.931 million, compared to $8.231 million in the fourth quarter of 2012. Mortgage banking revenues have been significantly impacted in 2013 by the increase in interest rates. In the current quarter, investments in SBIC's generated revenue of $1.419 million. We invested in the SBIC's several years ago and one of the investments is beginning to make distributions from the sale of the underlying companies. While it is difficult to predict the timing, or amount of such distributions, we currently anticipate further distributions in future periods.  The 2013 fourth quarter included gains on sales of SBA loans of $224 thousand, compared to $246 thousand in the same period of 2012. Bank fees and service charges were $686 thousand in the fourth quarter of 2013, a decrease of 7.0% compared to the fourth quarter of 2012, due to the receipt of a non-recurring fee in the fourth quarter 2012. Wealth management revenues increased by 11.3% in the fourth quarter of 2013 compared to the same period in 2012.

Non-interest expense for the fourth quarter of 2013 was $8.074 million, a decrease of $895 thousand, or 10.0%, from $8.969 million in the fourth quarter of 2012. This decrease primarily relates to certain mortgage banking costs and reduced compensation. As previously reported, we recently reduced our mortgage banking administrative workforce due to lower volume in this area.

In the fourth quarter of 2013, we recorded a tax expense of $668 thousand. The effective tax rate was 26.23%. This rate was adjusted downward this quarter primarily due to the impact of tax exempt investments. We recorded tax expense of $372 thousand in the fourth quarter of 2012, which resulted in an effective tax rate of 6.95%. The effective tax rate in 2012 was lower due to the reversal of the valuation allowance on deferred tax assets.

Net income available to common shareholders was $1.540 million, or $0.44 per diluted share, for the fourth quarter of 2013 after accounting for dividends accrued on preferred stock and the amortization of issuance discounts on preferred stock. These costs aggregated $339 thousand in the fourth quarter of 2013 and $373 thousand in the same period of 2012. The costs associated with $20.1 million of preferred stock will increase in the first quarter of 2014 when the rate of dividends increases to 9% from 5%. Net income available to common shareholders in the fourth quarter of 2012 was $4.608 million, or $1.34 per diluted share.

Year Ended December 31, 2013

Net interest income in 2013 was $19.845 million, an increase of $1.374 million, or 7.4%, from $18.471 million in 2012. We grew assets steadily in 2013, as the average balance of earning assets was approximately $747.7 million, compared to approximately $648.4 million in the prior year. The net interest margin in 2013 decreased to 2.65%, compared to 2.85% in 2012. The yield on earning assets was 3.17% in 2013, compared to 3.70% in 2012. The cost of interest bearing liabilities was 0.63% in 2013, compared to 1.07% in 2012.

The provision for credit losses was $700 thousand in 2013, compared to $100 thousand in 2012. Nonperforming loans decreased $4.9 million to $5.6 million at December 31, 2013 from $10.5 million at December 31, 2012. Nonperforming assets decreased to $6.7 million at December 31, 2013 from $15.6 million at December 31, 2012. The majority of this decrease relates to the transfer of one lending relationship back to performing status in the fourth quarter of 2013.

Non-interest income in 2013 was $29.285 million compared to $42.938 million in 2012. In 2013, the Company recognized a life insurance benefit of $1.055 million while an insurance settlement of $7.5 million was recognized in 2012. Excluding the insurance amounts, non-interest income was $28.230 million in 2013 compared to $35.438 million in 2012, a decrease of $7.208 million, or 20.3%. Non-interest income was significantly influenced by mortgage banking revenues due to rising interest rates in 2013, which aggregated $19.344 million, a decrease of $10.314 million, or 34.8%, compared to 2012. Gains on sales of investments were higher in 2013 aggregating $1.247 million, compared to $279 thousand in the same period of 2012. Gains on sales of SBA loans were $1.632 million in 2013, compared to $1.110 million in 2012. Gains on sales of loans and investments can vary from period to period. We also experienced an increase in bank fees and service charges of $183 thousand, or 7.3% in 2013, reflecting growth in deposits and new accounts. Non-interest income in 2013 included $1.587 million of revenues related to SBIC investments.

Non-interest expense was $35.981 million in 2013, compared to $39.965 million in the same period of 2012. Non-interest expense in 2013 included an impairment charge of $1.5 million, relating to the consolidation of our Minnesota operations, while 2012 included $2.5 million of non-recurring legal expenses associated with the insurance settlement received in the period. When these expenses are excluded, non-interest expense was $34.481 million in 2013 compared to $37.465 million in 2012 a decrease of $2.984 million or 8.0%. The valuation adjustments on other real estate were $14 thousand in 2013 compared to $1.700 million in 2012. In early 2013, we experienced higher operating costs when mortgage banking revenues were higher relative to early 2012. As 2013 proceeded, mortgage banking costs have decreased when compared to 2012.

During 2013, we recorded tax expense of $3.822 million which resulted in an effective tax rate of 30.70%. A tax benefit of $5.280 million was recognized in 2012, which resulted in an effective tax rate of (24.74%). The provision for income taxes was lower in 2012 because of the reversal of the valuation allowance on deferred tax assets.

Net income available to common shareholders was $7.307 million, or $2.11 per diluted share, in 2013 after accounting for dividends accrued on preferred stock and the amortization of issuance discounts on preferred stock. These costs aggregated $1.320 million in 2013 and $1.462 million in the same period of 2012. Net income available to common shareholders in 2012 was $25.162 million, or $7.52 per diluted share. The cost associated with $20.1 million of preferred stock will increase in the first quarter of 2014 when the rate of dividends increases to 9% from 5%. Net income available to common shareholders in the fourth quarter of 2012 was $4.608 million, or $1.34 per diluted share.

Assets, Liabilities and Equity

Total assets were $843.1 million at December 31, 2013, an increase of $72.3 million, or 9.4%, compared to $770.8 million at December 31, 2012. 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 $317.9 million at December 31, 2013, increased by $28.5 million since December 31, 2012. Actions taken to increase our loans held for investment are beginning to demonstrate results. Loans held for sale have decreased by $62.2 million since December 31, 2012 as mortgage banking production has been reduced by the recent increase in interest rates.

Total deposits were $723.2 million at December 31, 2013, increasing by $73.6 million from 2012 year-end. This increase relates primarily to growth in our North Dakota branches. Over recent years we have continued to witness growth in our rural branches located near the Bakken Formation. The table below shows changes since 2010.


Deposits of Rural Branches near Bakken Formation



December 31,


December 31,


Increase (Decrease)


Average Annual Growth

In thousands

2013


2010


$


%


$


%

Total Deposits

$

191,055


$

119,164


$

71,891


60

%


$

23,964


17

%



















Trust assets under management or administration increased to $249.7 million at December 31, 2013, compared to $211.5 million at December 31, 2012 as this department is capturing wealth being created by the exceptionally strong economic conditions in North Dakota.

Capital

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

At December 31, 2013, BNCCORP's tier 1 leverage ratio was 10.90%, the tier 1 risk-based capital ratio was 21.63%, and the total risk-based capital ratio was 23.10%.

At December 31, 2013, BNCCORP's tangible common equity as a percent of assets was 5.79% compared to 6.21% at December 31, 2012. Common shareholder equity at December 31, 2013 was $48.8 million and we had preferred stock and subordinated debentures outstanding which aggregated $43.5 million at December 31, 2013.

Book value per common share of the Company was $14.45 as of December 31, 2013, compared to $14.49 at December 31, 2012. Book value per common share, excluding accumulated other comprehensive income, was $14.89 as of December 31, 2013, compared to $12.99 at December 31, 2012.

At December 31, 2013, BNC National Bank had a tier 1 leverage ratio of 10.06%, a tier 1 risk-based capital ratio of 20.13%, and a total risk-based capital ratio of 21.40%.

At December 31, 2013, tangible common equity of BNC National Bank was 9.82% 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. Although we believe we are compliant with the fully phased in standards, we have not completed our assessment of the proposed standards. The regulatory environment for banking entities is increasingly complicated and the cost of complying with regulations will impact earnings for the foreseeable future.

Asset Quality

Nonperforming assets were $6.7 million at December 31, 2013, down from $15.6 million at December 31, 2012. This decrease relates to the transfer of one lending relationship back to performing status in the fourth quarter and sales of other real estate throughout the year. The ratio of total nonperforming assets to total assets was 0.79% at December 31, 2013 and 2.03% at December 31, 2012. The provision for credit losses was $0 in the fourth quarter of 2013 and 2012. The recovery in the provision for other real estate costs was $54 thousand in the fourth quarter of 2013 and the provision for other real estate costs was $0 in 2012.

Nonperforming loans were $5.6 million at December 31, 2013, down from $10.5 million at December 31, 2012. The ratio of the allowance for credit losses to total nonperforming loans as of December 31, 2013 was 175% compared to 96% at December 31, 2012.

The allowance for credit losses was $9.8 million at December 31, 2013, compared to $10.1 million at December 31, 2012. The allowance for credit losses as a percentage of total loans at December 31, 2013 was 2.81%, compared to 2.62% at December 31, 2012. The allowance for credit losses as a percentage of loans and leases held for investment at December 31, 2013 was 3.10%, compared to 3.49% at December 31, 2012.

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 December 31, 2012, BNC had $13.6 million of classified loans, $10.5 million of loans on non-accrual and $5.1 million of other real estate owned.

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 10 offices in Illinois, Kansas, Nebraska, 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.

 (Financial tables attached)




BNCCORP, INC.

CONSOLIDATED FINANCIAL DATA

(Unaudited)




For the Quarter

Ended December 31,


For the Twelve Months

Ended December 31,

(In thousands, except per share data)


2013


2012


2013


2012

SELECTED INCOME STATEMENT DATA













Interest income


$

6,937


$

5,862


$

23,706


$

23,992

Interest expense



924



1,202



3,861



5,521

Net interest income



6,013



4,660



19,845



18,471

Provision for credit losses



-



-



700



100

Non-interest income



4,608



9,662



29,285



42,938

Non-interest expense



8,074



8,969



35,981



39,965

Income before income taxes



2,547



5,353



12,449



21,344

Income tax expense (benefit)



668



372



3,822



(5,280)

Net income



1,879



4,981



8,627



26,624

Preferred stock costs



(339)



(373)



(1,320)



(1,462)

Net income available to common shareholders


$

1,540


$

4,608


$

7,307


$

25,162



























EARNINGS PER SHARE DATA


























Basic earnings per common share


$

0.46


$

1.40


$

2.22


$

7.64

Diluted earnings per common share


$

0.44


$

1.34


$

2.11


$

7.52





BNCCORP, INC.

CONSOLIDATED FINANCIAL DATA

(Unaudited)




For the Quarter

Ended December 31,


For the Twelve Months

Ended December 31,

(In thousands, except share data)


2013


2012


2013


2012

ANALYSIS OF NON-INTEREST INCOME













Bank charges and service fees


$

686


$

738


$

2,675


$

2,492

Wealth management revenues



325



292



1,260



1,204

Mortgage banking revenues



1,931



8,231



19,344



29,658

Gains on sales of loans, net



224



246



1,632



1,110

Gains on sales of securities, net



-



-



1,247



279

Other



1,442



155



2,072



695

Subtotal non-interest income



4,608



9,662



28,230



35,438

Insurance claim settlement



-



-



-



7,500

Life insurance benefit received



-



-



1,055



-

Total non-interest income


$

4,608


$

9,662


$

29,285


$

42,938

ANALYSIS OF NON-INTEREST EXPENSE













Salaries and employee benefits


$

3,677


$

4,241


$

16,668


$

17,040

Professional services



727



1,262



3,610



4,665

Data processing fees



852



743



3,070



2,859

Marketing and promotion



781



607



2,708



2,089

Occupancy



629



495



2,394



1,935

Regulatory costs



150



312



830



1,213

Depreciation and amortization



304



284



1,232



1,120

Office supplies and postage



152



178



613



684

Other real estate costs



38



50



126



2,038

Other



840



797



3,230



3,822

Subtotal non-interest expense



8,074



8,969



34,481



37,465

Insurance settlement legal fees



-



-



-



2,500

Impairment charge



-



-



1,500



-

Total non-interest expense


$

8,074


$

8,969


$

35,981


$

39,965

WEIGHTED AVERAGE SHARES













Common shares outstanding (a)



3,314,806



3,294,562



3,297,235



3,291,660

Incremental shares from assumed conversion of options and contingent shares



166,426



147,319



171,155



52,620

Adjusted weighted average shares (b)



3,481,232



3,441,881



3,468,390



3,344,280


(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)


December 31,

 2013


September 30,

 2013


December 31,
2012











SELECTED BALANCE SHEET DATA










Total assets


$

843,123


$

829,232


$

770,776

Loans held for sale-mortgage banking



32,870



34,344



95,095

Loans and leases held for investment



317,928



294,876



289,469

Total loans



350,798



329,220



384,564

Allowance for credit losses



(9,847)



(9,897)



(10,091)

Investment securities available for sale



435,719



405,300



300,549

Other real estate, net



1,056



2,186



5,131

Earning assets



787,519



768,732



698,872

Total deposits



723,229



706,495



649,604

Core deposits



658,704



641,725



584,604

Other borrowings



42,399



44,452



34,130

Cash and cash equivalents



18,871



56,728



40,790











OTHER SELECTED DATA










Net unrealized gains (losses) in accumulated other comprehensive income


$

(1,468)


$

363


$

4,961

Trust assets under supervision


$

249,691


$

256,178


$

211,519

Total common stockholders' equity


$

48,767


$

49,032


$

47,842

Book value per common share


$

14.45


$

14.75


$

14.49

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


$

14.89


$

14.64


$

12.99

Full time equivalent employees



236



252



272

Common shares outstanding



3,374,601



3,324,584



3,300,652











CAPITAL RATIOS










Tier 1 leverage (Consolidated)



10.94%



10.99%



11.17%

Tier 1 risk-based capital (Consolidated)



21.67%



22.60%



20.49%

Total risk-based capital (Consolidated)



23.15%



24.18%



22.43%

Tangible common equity (Consolidated)



5.79%



5.92%



6.21%











Tier 1 leverage (BNC National Bank)



10.06%



10.70%



10.68%

Tier 1 risk-based capital (BNC National Bank)



20.13%



22.17%



19.80%

Total risk-based capital (BNC National Bank)



21.40%



23.43%



21.06%

Tangible capital (BNC National Bank)



9.82%



10.55%



10.97%














BNCCORP, INC.

CONSOLIDATED FINANCIAL DATA

(Unaudited)




For the Quarter

Ended December 31,


For the Twelve Months

Ended December 31,

(In thousands)



2013



2012



2013



2012














AVERAGE BALANCES













Total assets


$

832,892


$

741,977


$

807,549


$

711,178

Loans held for sale-mortgage banking



27,882



79,113



56,779



66,288

Loans and leases held for investment



300,727



287,441



284,344



284,507

Total loans



328,609



366,554



341,123



350,795

Investment securities available for sale



435,193



280,854



359,119



270,374

Earning assets



776,125



674,187



747,729



648,425

Total deposits



708,687



619,968



686,606



605,014

Core deposits



644,143



553,535



621,715



542,118

Total equity



70,951



66,303



70,472



53,568

Cash and cash equivalents



30,500



50,738



65,062



46,328














KEY RATIOS













Return on average common stockholders' equity (a)



12.29%



46.28%



15.15%



90.04%

Return on average assets (b)



0.90%



2.67%



1.07%



3.74%

Net interest margin



3.07%



2.75%



2.65%



2.85%

Efficiency ratio



76.02%



62.62%



73.24%



65.08%

Efficiency ratio (Adjusted) (c)



76.02%



62.62%



70.45%



69.50%

Efficiency ratio (BNC National Bank)



74.38%



61.59%



71.72%



62.44%



(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 twelve month period ending December 31, 2013 and insurance receipts and non-recurring legal fees for the twelve month period ending December 31, 2012.





BNCCORP, INC.

CONSOLIDATED FINANCIAL DATA

(Unaudited)




As of

(In thousands)


December 31,

2013


September 30,

2013


December 31,

 2012








ASSET QUALITY










Loans 90 days or more delinquent and still accruing interest


$

961


$

57


$

12

Non-accrual loans



4,656



10,072



10,500

Total nonperforming loans


$

5,617


$

10,129


$

10,512

Other real estate, net



1,056



2,186



5,131

Total nonperforming assets


$

6,673


$

12,315


$

15,643

Allowance for credit losses


$

9,847


$

9,897


$

10,091

Troubled debt restructured loans


$

8,544


$

8,654


$

12,368

Ratio of total nonperforming loans to total loans



1.60%



3.08%



2.73%

Ratio of total nonperforming assets to total assets



0.79%



1.49%



2.03%

Ratio of nonperforming loans to total assets



0.67%



1.22%



1.36%

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



3.10%



3.36%



3.49%

Ratio of allowance for credit losses to total loans



2.81%



3.01%



2.62%

Ratio of allowance for credit losses to nonperforming loans



175%



98%



96%





For the Quarter


For the Twelve Months

(In thousands)


Ended December 31,


Ended December 31,



2013


2012


2013


2012

Changes in Nonperforming Loans:













Balance, beginning of period


$

10,129


$

4,856


$

10,512


$

6,169

Additions to nonperforming



1,420



5,806



2,231



5,880

Charge-offs



(26)



(37)



(935)



(354)

Reclassified back to performing



(5,811)



-



(5,830)



(815)

Principal payments received



(95)



(113)



(337)



(368)

Transferred to repossessed assets



-



-



(24)



-

Transferred to other real estate owned



-



-



-



-

Balance, end of period


$

5,617


$

10,512


$

5,617


$

10,512





BNCCORP, INC.

CONSOLIDATED FINANCIAL DATA

(Unaudited)


(In thousands)


For the Quarter

Ended December 31,


For the Twelve Months

Ended December 31,



2013


2012


2013


2012

Changes in Allowance for Credit Losses:













Balance, beginning of period


$

9,897


$

10,521


$

10,091


$

10,630

Provision



-



-



700



100

Loans charged off



(126)



(522)



(1,109)



(905)

Loan recoveries



76



92



165



266

Balance, end of period


$

9,847


$

10,091


$

9,847


$

10,091














Ratio of net charge-offs to average total loans



(0.015)%



(0.117)%



(0.277)%



(0.182)%

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



(0.061)%



(0.469)%



(0.277)%



(0.182)%



(In thousands)


For the Quarter

Ended December 31,


For the Twelve Months

Ended December 31,



2013


2012


2013


2012

Changes in Other Real Estate:













Balance, beginning of period


$

2,186


$

5,859


$

5,131


$

10,145

Transfers from nonperforming loans



-



-



-



-

Transfers from premises and equipment



-



-



800



-

Real estate sold



(1,184)



(748)



(4,897)



(3,206)

Net gains (losses) on sale of assets



-



20



8



(108)

Provision



54



-



14



(1,700)

Balance, end of period


$

1,056


$

5,131


$

1,056


$

5,131





As of

(In thousands)


December 31,

2013


September 30,

2013


December 31,
2012

Other real estate


$

3,250


$

5,120


$

8,146

Valuation allowance



(2,194)



(2,934)



(3,015)

Other real estate, net


$

1,056


$

2,186


$

5,131





BNCCORP, INC.

CONSOLIDATED FINANCIAL DATA

(Unaudited)



As of

(In thousands)

December 31, 2013


December 31, 2012

CREDIT CONCENTRATIONS












North Dakota






    Commercial and industrial

$

73,277


$

65,793

    Construction


13,082



10,824

    Agricultural


16,847



15,047

    Land and land development


10,611



12,240

    Owner-occupied commercial real estate


28,435



24,107

    Commercial real estate


35,654



12,644

    Small business administration


2,188



2,428

    Consumer


31,695



25,115

      Subtotal

$

211,789


$

168,198

Arizona






    Commercial and industrial

$

3,021


$

1,421

    Construction


-



-

    Agricultural


-



-

    Land and land development


5,102



5,663

    Owner-occupied commercial real estate


1,571



667

    Commercial real estate


16,306



16,699

    Small business administration


15,502



12,881

    Consumer


2,248



2,884

      Subtotal

$

43,750


$

40,215

Minnesota






    Commercial and industrial

$

794


$

1,154

    Construction


-



-

    Agricultural


21



24

    Land and land development


578



1,145

    Owner-occupied commercial real estate


-



-

    Commercial real estate


15,589



14,767

    Small business administration


91



62

    Consumer


1,241



409

      Subtotal

$

18,314


$

17,561


©2012 PR Newswire. All Rights Reserved.

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