BNCCORP, INC. 
By First Quarter 2009 Highlights
- Net interest income is 9.7% higher than 2008 first quarter
- Mortgage banking revenues and gains on sales of investments drive significant increase in non-interest income
- Provisions for loans and real estate losses are
- Allowances for loans and real estate losses increase from year-end 2008
- Regulatory capital increases significantly compared with year-end 2008
Net income was
First Quarter Results
Net interest income for the first quarter of 2009 was
The provision for credit losses in the first quarter of 2009 was
Non-interest income for the first quarter of 2009 was
In the first quarter of 2009, non-interest expense increased by
Tax expense of
Net income available to common shareholders of
Assets, Liabilities and Equity
Total assets were
Total liabilities, including deposits, at
Total deposits were
Total common stockholders' equity was
The book value per common share was
Trust assets under supervision were
Regulatory Capital
The Company's capital levels significantly exceeded the regulatory requirements for "well-capitalized" institutions at
At
In January of 2009, the Company issued preferred stock with an aggregate liquidation preference of approximately
As a sound, well-capitalized institution, BNC initially decided to participate in the CPP as a prudent measure to further strengthen our capital, reassure our customers and enhance our ability to support lending growth at a time of significant economic uncertainty. However, subsequent legislation and regulations implementing the CPP have significant implications on participating institutions, including compensation programs and corporate governance requirements. It is also possible that additional restrictions may be imposed on CPP participants. We believe we are substantially in compliance with the requirements of CPP currently in effect and will continue to monitor other requirements as they evolve.
Asset Quality
The Company is carefully monitoring asset quality due to present economic conditions and expects credit risk to remain elevated in 2009 and periods beyond. Accordingly, provisions for credit and other real estate (ORE) losses are anticipated to be elevated for the foreseeable future.
The allowance for credit losses was
At
BNC has concentrations of land and construction loans. At
Outlook
Mr. Cleveland noted, "BNC continues to serve our customers and community, while maintaining a wary viewpoint on the economy. Nationwide, housing and other real estate values are continuing to decline, workers are concerned about jobs, and businesses are finding it more difficult generate profits. These circumstances, among others, create uncertainty and cause businesses and consumers to be cautious. Government interventions into the financial services industry may be well intended, but it is important that these interventions not come with excessive restrictions if they are to have the desired benefits. All-in-all, this is a very difficult period for the financial services industry and we do not see conditions abating in the near term. BNC is fortunate to have a strong capital position, a sharp focus on our business, and a team of very talented and competitive people who are committed to long term success."
BNCCORP, Inc., headquartered in
This news release may contain "forward-looking statements" within the meaning 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", or other expressions. We caution readers that these forward-looking statements, including, without limitation, those relating to our future business prospects, revenues, working capital, liquidity, capital needs, interest costs and income, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements due to several important factors. These factors include, but are not limited to: 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 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 HIGHLIGHTS
(Unaudited)
For the Quarter
(Unaudited and in thousands, Ended March 31,
except per share data) 2009 2008
SELECTED INCOME STATEMENT DATA
Interest income $10,679 $11,385
Interest expense 3,797 5,113
Net interest income 6,882 6,272
Provision for credit losses 1,700 800
Non-interest income 3,696 2,299
Non-interest expense 8,060 5,739
Income before income taxes 818 2,032
Income tax expense 202 670
Net income $616 $1,362
Preferred stock costs 266 -
Net income available to common shareholders $350 $1,362
EARNINGS PER SHARE DATA
Basic earnings per common share $0.11 $0.40
Diluted earnings per common share $0.11 $0.39
BNCCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except share, As of
per share and full time March 31, December 31, March 31,
equivalent data) 2009 2008 2008
SELECTED BALANCE SHEET DATA
Total assets $903,035 $861,498 $765,423
Loans held for sale 29,275 13,403 5,065
Participating interests in
mortgage loans 28,843 28,584 26,160
Loans and leases held for investment 545,438 542,753 516,452
Total loans 603,556 584,740 547,677
Allowance for credit losses (9,674) (8,751) (7,178)
Investment securities available
for sale 227,810 209,857 160,452
Other real estate 15,143 10,189 -
Earning assets 829,024 791,844 708,202
Total deposits
687,882 675,321 568,214
Core deposits 570,792 575,637 516,239
Other borrowings 131,328 124,369 130,609
OTHER SELECTED DATA
Net unrealized gains (losses) in
investment portfolio, pretax $(7,014) $(7,805) $802
Trust assets under supervision $321,027 $320,340 $321,964
Total common stockholders' equity $54,667 $53,947 $58,241
Book value per common share $16.57 $16.35 $17.62
Effect of net unrealized gains
(losses) on securities available for
sale, net of tax, on book value
per common share $(1.32) $(1.47) $0.15
Book value per common share,
excluding effect of unrealized
gains (losses) on securities $17.89 $17.82 $17.47
Full time equivalent employees 285 238 178
Common shares outstanding 3,299,163 3,299,163 3,305,742
CAPITAL RATIOS
Tier 1 leverage (Consolidated) 11.48% 9.01% 10.47%
Tier 1 risk-based capital (Consolidated) 14.68% 11.15% 12.02%
Total risk-based capital (Consolidated) 15.94% 12.95% 13.78%
Tangible common equity (Consolidated) 5.98% 6.21% 7.52%
Tier 1 leverage (BNC National Bank) 9.16% 9.34% 11.42%
Tier 1 risk-based capital
(BNC National Bank) 11.71% 11.56% 13.12%
Total risk-based capital
(BNC National Bank) 15.16% 12.81% 14.26%
Tangible capital (BNC National Bank) 8.47% 8.77% 10.90%
BNCCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
For the Quarter
Ended March 31,
(In thousands) 2009 2008
AVERAGE BALANCES
Total assets $876,472 $721,024
Loans held for sale 23,335 374
Participating interests in mortgage loans 26,126 22,708
Loans and leases held for investment 549,619 506,886
Total loans 599,081 529,968
Earning assets 807,256 666,488
Total deposits 663,453 547,777
Core deposits 564,590 512,265
Common stockholders' equity 55,647 61,016
KEY RATIOS
Return on average common stockholders'
equity 2.85% 8.98%
Return on average assets 0.29% 0.76%
Net interest margin 3.56% 3.78%
Efficiency ratio 76.06% 66.96%
As of
(In thousands) March 31, December 31, March 31,
2009 2008 2008
ASSET QUALITY
Loans 90 days or more delinquent
and still accruing interest $- $6 $2
Non-accrual loans 23,728 22,909 9,602
Total nonperforming loans $23,728 $22,915 $9,604
Other real estate 15,143 10,189 -
Total nonperforming assets $38,870 $33,104 $9,604
Allowance for credit losses $9,674 $8,751 $7,178
Ratio of total nonperforming
loans to total loans 3.93% 3.92% 1.75%
Ratio of total nonperforming
assets to total assets 4.30% 3.84% 1.25%
Ratio of allowance for credit
losses to loans and leases held
for investment 1.77% 1.61% 1.39%
Ratio of allowance for credit
losses to total loans 1.68% 1.50% 1.31%
Ratio of allowance for credit
losses to nonperforming loans 41% 38% 75%
For the Quarter
Ended March 31,
2009 2008
Changes in Allowance for Credit Losses:
Balance, beginning of period $8,751 $6,599
Provision 1,700 800
Loans charged off (782) (232)
Loan recoveries 5 11
Balance, end of period $9,674 $7,178
Ratio of net charge-offs to
average total loans (0.130)% (0.042)%
Ratio of net charge-offs to
average total loans, annualized (0.519)% (0.167)%
For the Quarter
Ended March 31,
2009 2008
Changes in Allowance for Other Real Estate
Balance, beginning of period $- $-
Provision 750 -
Charged offs - -
Recoveries - -
Balance, end of period $750 $-
BNCCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
For the Quarter
Ended March 31,
(In thousands, except share data) 2009 2008
ANALYSIS OF NON-INTEREST INCOME
Bank charges and service fees $579 $491
Wealth management revenues 584 756
Mortgage banking revenues 1,426 -
Gains on sales of commercial real
estate loans - 759
Net gain on sales of securities 903 -
Other 204 293
Total non-interest income $3,696 $2,299
ANALYSIS OF NON-INTEREST EXPENSE
Salaries and employee benefits $3,739 $3,423
Data processing fees 539 506
Occupancy 639 442
Depreciation and amortization 371 342
Marketing and promotion 185 195
Professional services 497 189
FDIC and other assessments 179 54
Office supplies and postage 141 111
Provision for ORE losses 750 -
ORE expenses 157 -
Other 863 477
Total non-interest expense $8,060 $5,739
WEIGHTED AVERAGE SHARES
Common shares outstanding (a) 3,261,831 3,407,821
Incremental shares from assumed
conversion of options and
contingent shares 12,764 41,660
Adjusted weighted average shares (b) 3,274,595 3,449,481
(a) Denominator for Basic Earnings Per Common Share
(b) Denominator for Diluted Earnings Per Common Share
FOR FURTHER INFORMATION:
WEBSITE: www.bnccorp.com
SOURCE BNCCORP, Inc.
