By 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 For the Twelve Months
Ended December 31, 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 For the Twelve Months
Ended December 31, 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, September 30, December 31,
2012
2013 2013
--- ---- ----
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 For the Twelve Months
Ended December 31, 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, September 30, December 31,
2013 2013 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 For the Twelve Months
Ended December 31, 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 For the Twelve Months
Ended December 31, 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, September
30, December 31,
2012
2013 2013
--- ---- ----
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, December 31,
2013 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
------- -------
SOURCE BNCCORP, INC.
