BNCCORP, INC. REPORTS SECOND QUARTER NET INCOME OF $1.9 MILLION, OR $0.53 PER DILUTED SHARE
BNCCORP, INC. (OTCQX Markets: BNCC) reported a significant rise in net income for the second quarter of 2024, reaching $1.9 million or $0.53 per diluted share, up from $574 thousand or $0.16 per share in the same period of 2023. The net interest margin improved to 3.58%, and the efficiency ratio slightly improved to 72.86%. The Community Banking segment reported net income of $2.2 million.
However, net interest income fell by 5.5% to $7.6 million from $8.0 million in the second quarter of 2023. Loans held for investment increased $18.2 million to $687 million. Interest expense rose by $973 thousand due to Federal Reserve rate hikes. Non-interest income for the Community Banking segment dropped by $401 thousand.
Nonperforming assets decreased to $3.1 million. Deposits decreased by $44.8 million to $792.4 million. Consolidated expenses increased by $319 thousand year-over-year.
BNCCORP, INC. (Mercati OTCQX: BNCC) ha riportato un significativo aumento del reddito netto per il secondo trimestre del 2024, raggiungendo 1,9 milioni di dollari o 0,53 dollari per azione diluita, rispetto ai 574 mila dollari o 0,16 dollari per azione nello stesso periodo del 2023. Il margine di interesse netto è migliorato al 3,58%, e il rapporto di efficienza è leggermente migliorato al 72,86%. Il segmento Banca Comunitaria ha registrato un reddito netto di 2,2 milioni di dollari.
Tuttavia, il reddito da interessi netti è diminuito del 5,5% a 7,6 milioni di dollari rispetto agli 8,0 milioni di dollari del secondo trimestre del 2023. I prestiti detenuti per investimento sono aumentati di 18,2 milioni di dollari arrivando a 687 milioni di dollari. Le spese per interessi sono aumentate di 973 mila dollari a causa degli aumenti dei tassi della Federal Reserve. Il reddito non da interessi del segmento Banca Comunitaria è diminuito di 401 mila dollari.
Gli atti non performanti sono diminuiti a 3,1 milioni di dollari. I depositi sono diminuiti di 44,8 milioni di dollari a 792,4 milioni di dollari. Le spese consolidate sono aumentate di 319 mila dollari rispetto all'anno precedente.
BNCCORP, INC. (Mercados OTCQX: BNCC) reportó un aumento significativo en el ingreso neto para el segundo trimestre de 2024, alcanzando 1.9 millones de dólares o 0.53 dólares por acción en circulación, en comparación con 574 mil dólares o 0.16 dólares por acción en el mismo período de 2023. El margen de interés neto mejoró al 3.58%, y el ratio de eficiencia mejoró ligeramente al 72.86%. El segmento de Banca Comunitaria reportó un ingreso neto de 2.2 millones de dólares.
Sin embargo, los ingresos por intereses netos cayeron un 5.5% a 7.6 millones de dólares desde 8.0 millones de dólares en el segundo trimestre de 2023. Los préstamos mantenidos para inversión aumentaron 18.2 millones de dólares alcanzando 687 millones de dólares. Los gastos por intereses aumentaron en 973 mil dólares debido a los aumentos de tasas de la Reserva Federal. Los ingresos no por intereses del segmento de Banca Comunitaria cayeron en 401 mil dólares.
Los activos no productivos disminuyeron a 3.1 millones de dólares. Los depósitos disminuyeron en 44.8 millones de dólares a 792.4 millones de dólares. Los gastos consolidados aumentaron en 319 mil dólares en comparación con el año anterior.
BNCCORP, INC. (OTCQX 마켓: BNCC)는 2024년 2분기 순이익이 190만 달러 또는 희석 주당 0.53 달러에 달하며, 2023년 같은 기간의 57.4만 달러 또는 주당 0.16 달러에서 상승했다고 보고했습니다. 순이자 마진은 3.58%로 개선되었고, 효율성 비율은 약간 개선되어 72.86%에 도달했습니다. 커뮤니티 뱅킹 부문의 순이익은 220만 달러로 보고되었습니다.
그러나 순이자 수익은 2023년 2분기의 800만 달러에서 5.5% 감소한 760만 달러로 줄었습니다. 투자를 위한 대출은 1820만 달러 증가하여 6억 8700만 달러가 되었습니다. 이자 비용은 연방준비제도(Federal Reserve) 금리 인상으로 인해 97.3만 달러 증가했습니다. 커뮤니티 뱅킹 부문의 비이자 수익은 40.1만 달러 감소했습니다.
부실 자산은 310만 달러로 감소했습니다. 예금은 4480만 달러 감소하여 7억 9240만 달러가 되었습니다. 연결 비용은 전년 대비 31.9만 달러 증가했습니다.
BNCCORP, INC. (Marchés OTCQX : BNCC) a annoncé une augmentation significative de son revenu net pour le deuxième trimestre de 2024, atteignant 1,9 million de dollars ou 0,53 dollar par action diluée, contre 574 000 dollars ou 0,16 dollar par action durant la même période de 2023. La marge d'intérêt nette s'est améliorée à 3,58%, et le taux d'efficacité s'est légèrement amélioré à 72,86%. Le segment de Banque Communautaire a rapporté un revenu net de 2,2 millions de dollars.
Cependant, le revenu d'intérêts nets a chuté de 5,5% à 7,6 millions de dollars, contre 8,0 millions de dollars au deuxième trimestre de 2023. Les prêts détenus pour investissement ont augmenté de 18,2 millions de dollars pour atteindre 687 millions de dollars. Les dépenses d'intérêts ont augmenté de 973 000 dollars en raison des hausses de taux de la Réserve fédérale. Les revenus non d'intérêts pour le segment de Banque Communautaire ont diminué de 401 000 dollars.
Les actifs non performants ont diminué à 3,1 millions de dollars. Les dépôts ont diminué de 44,8 millions de dollars pour atteindre 792,4 millions de dollars. Les dépenses consolidées ont augmenté de 319 000 dollars par rapport à l'année précédente.
BNCCORP, INC. (OTCQX Märkte: BNCC) hat im zweiten Quartal 2024 einen signifikanten Anstieg des Nettoeinkommens gemeldet, welches 1,9 Millionen Dollar oder 0,53 Dollar pro verwässerter Aktie erreichte, im Vergleich zu 574 Tausend Dollar oder 0,16 Dollar pro Aktie im gleichen Zeitraum 2023. Die Nettozinsspanne verbesserte sich auf 3,58%, und das Effizienzverhältnis verbesserte sich leicht auf 72,86%. Das Segment Community Banking meldete ein Nettoeinkommen von 2,2 Millionen Dollar.
Allerdings fiel das Nettozinsinkommen um 5,5% auf 7,6 Millionen Dollar von 8,0 Millionen Dollar im zweiten Quartal 2023. Investitionsdarlehen stiegen um 18,2 Millionen Dollar auf 687 Millionen Dollar. Zinsaufwendungen stiegen um 973 Tausend Dollar aufgrund der Zinserhöhungen der Federal Reserve. Das Nichteinkommen im Segment Community Banking fiel um 401 Tausend Dollar.
Problematische Vermögenswerte sanken auf 3,1 Millionen Dollar. Einlagen sanken um 44,8 Millionen Dollar auf 792,4 Millionen Dollar. Konsolidierte Ausgaben stiegen im Jahresvergleich um 319 Tausend Dollar.
- Net income increased to $1.9 million, a 224% rise.
- Net interest margin improved to 3.58%.
- Efficiency ratio improved to 72.86%.
- Loans held for investment increased by $18.2 million.
- Nonperforming assets decreased to $3.1 million.
- Net interest income decreased by 5.5% to $7.6 million.
- Non-interest income for the Community Banking segment decreased by $401 thousand.
- Deposits decreased by $44.8 million.
- Consolidated expenses increased by $319 thousand.
Highlights
- Net income during the second quarter of 2024 increased
, or$1.3 million 224.0% , to , or$1.9 million per diluted share, from$0.53 , or$574 thousand per diluted share, in the 2023 period.$0.16 - Second quarter 2024 return on average assets of
0.82% compared to0.25% in the 2023 period. - Net interest margin increased to
3.58% in the second quarter of 2024 compared to3.52% in the first quarter of 2024. - Efficiency ratio improved to
72.86% during the second quarter of 2024 compared to73.50% in the first quarter of 2024. - For the quarter, the Community Banking segment reported net income of
, or$2.2 million per diluted share, compared to net income of$0.62 , or$2.8 million per diluted share, in the same period of 2023.$0.79 - Yields on loans held for investment was
5.59% for the second quarter of 2024 compared to5.23% in the second quarter of 2023. - During the quarter, loans held for investment increased by
compared to the first quarter of 2024, or$9.1 million 1.3% . As a result, loans held for investment have increased , or$18.2 million 2.7% , to from$687.0 million at December 31, 2023.$668.8 million - The ratio of loans held for investment-to-deposits increased to
86.7% at June 30, 2024 from79.9% at December 31, 2023. - Allowance for credit losses as of June 30, 2024, decreased to
1.38% of loans held for investment compared to1.39% as of December 31, 2023.
Management Commentary
"Year-to-date results reflect a more stable earnings stream than a year ago, allowing greater focus on critical core banking objectives that build incremental shareholder value over time. During the quarter, we expanded loans held for investment by
Mr. Collins added, "We strive for sustainable quality loan growth, while supporting this goal with a conservative credit culture. The second quarter loan originations' average yield of
"Consistent with prior quarters, our strategy remains to deliver sustainable growth, anchored by strong risk management practices and a culture of building strong customer relationships that have weathered the extreme volatility experienced in recent years."
2024 Versus 2023 Second Quarter Comparison | |||||||||||||||
SEGMENT DATA | For the Quarter Ended June 30, 2024 | ||||||||||||||
(in thousands) | Community Banking | Mortgage Banking (a) | Holding Company | Intercompany Eliminations | BNCCORP Consolidated | ||||||||||
Net interest income (expense) | $ | 7,842 | $ | - | $ | (245) | $ | - | $ | 7,597 | |||||
Provision for credit losses | 30 | - | - | - | 30 | ||||||||||
Non-interest income | 1,549 | - | 596 | (677) | 1,468 | ||||||||||
Non-interest expense | 6,497 | - | 784 | (677) | 6,604 | ||||||||||
Income (loss) before taxes | 2,864 | - | (433) | - | 2,431 | ||||||||||
Income tax expense (benefit) | 673 | - | (102) | - | 571 | ||||||||||
Net income (loss) | $ | 2,191 | $ | - | $ | (331) | $ | - | $ | 1,860 | |||||
For the Quarter Ended June 30, 2023 | |||||||||||||||
Community Banking | Mortgage Banking | Holding Company | Intercompany Eliminations | BNCCORP Consolidated | |||||||||||
Net interest income (expense) | $ | 8,114 | $ | 147 | $ | (218) | $ | - | $ | 8,043 | |||||
Provision for credit losses | 165 | - | - | - | 165 | ||||||||||
Non-interest income | 1,950 | 2,172 | 521 | (931) | 3,712 | ||||||||||
Non-interest expense | 6,178 | 4,845 | 748 | (931) | 10,840 | ||||||||||
Income (loss) before taxes | 3,721 | (2,526) | (445) | - | 750 | ||||||||||
Income tax expense (benefit) | 907 | (626) | (105) | - | 176 | ||||||||||
Net income (loss) | $ | 2,814 | $ | (1,900) | $ | (340) | $ | - | $ | 574 | |||||
(a) The Company divested the mortgage banking segment in 2023. |
The Community Banking Segment reported net income of
Consolidated net interest income for the second quarter of 2024 was
On a consolidated basis, second-quarter interest income increased
Consolidated interest expense in the second quarter of 2024 was
The consolidated average balance of deposits decreased by
As of June 30, 2024, nonperforming assets were
Non-interest income for the Community Banking Segment during the second quarter of 2024 was
Non-interest expense for the Community Banking Segment during the second quarter of 2024 increased
In the second quarter of 2024, consolidated income tax expense was
Tangible book value per common share on June 30, 2024, was
2024 Versus 2023 Six-Month Comparison | |||||||||||||||
SEGMENT DATA | For the Six Months Ended June 30, 2024 | ||||||||||||||
(in thousands) | Community Banking | Mortgage Banking (a) | Holding Company | Intercompany Eliminations | BNCCORP Consolidated | ||||||||||
Net interest income (expense) | $ | 15,923 | $ | - | $ | (467) | $ | - | $ | 15,456 | |||||
Provision for credit losses | 245 | - | - | - | 245 | ||||||||||
Non-interest income | 3,167 | - | 1,137 | (1,298) | 3,006 | ||||||||||
Non-interest expense | 13,242 | - | 1,567 | (1,298) | 13,511 | ||||||||||
Income (loss) before taxes | 5,603 | - | (897) | - | 4,706 | ||||||||||
Income tax expense (benefit) | 1,317 | - | (211) | - | 1,106 | ||||||||||
Net income (loss) | $ | 4,286 | $ | - | $ | (686) | $ | - | $ | 3,600 | |||||
For the Six Months Ended June 30, 2023 | |||||||||||||||
Community Banking | Mortgage Banking | Holding Company | Intercompany Eliminations | BNCCORP Consolidated | |||||||||||
Net interest income (expense) | $ | 16,611 | $ | 302 | $ | (429) | $ | - | $ | 16,484 | |||||
Provision for credit losses | 405 | - | - | - | 405 | ||||||||||
Non-interest income | 4,177 | 4,019 | 1,071 | (1,924) | 7,343 | ||||||||||
Non-interest expense | 12,689 | 8,459 | 1,522 | (1,924) | 20,746 | ||||||||||
Income (loss) before taxes | 7,694 | (4,138) | (880) | - | 2,676 | ||||||||||
Income tax expense (benefit) | 1,862 | (1,026) | (207) | - | 629 | ||||||||||
Net income (loss) | $ | 5,832 | $ | (3,112) | $ | (673) | $ | - | $ | 2,047 | |||||
(a) The Company divested the mortgage banking segment in 2023. |
The Community Banking Segment reported net income of
Consolidated net interest income in the first half of 2024 was
On a consolidated basis, the six-month period interest income increased
Consolidated interest expense in the first half of 2024 was
The average balance of deposits increased by
Non-interest income for the Community Banking Segment in the first six months of 2024 was
Non-interest expense for the Community Banking Segment in the first six months of 2024 increased
During the six-month period ended June 30, 2024, consolidated income tax expense was
Assets and Liabilities
At the consolidated level, total assets were
Total deposits decreased
The following table provides additional detail to the Company's total deposit relationships:
As of | |||||||||
(In thousands) | June 30, 2024 | December 31, 2023 | June 30, 2023 | ||||||
Deposits: | |||||||||
Non-interest-bearing | $ | 171,112 | $ | 184,442 | $ | 181,508 | |||
Interest-bearing – | |||||||||
Savings, interest checking and money market | 546,080 | 582,855 | 563,878 | ||||||
Time deposits | 75,173 | 69,906 | 59,111 | ||||||
Total on balance sheet deposits | 792,365 | 837,203 | 804,497 | ||||||
Off-balance sheet deposits (1) | 16,814 | 34,792 | 4,808 | ||||||
Total available deposits | $ | 809,179 | $ | 871,995 | $ | 809,305 | |||
(1) The off-balance sheet deposits above do not include off-balance sheet time deposits that can be brought back on the balance sheet |
The Company remains highly focused on meeting the needs of its customers and ensuring deposit rates reflect changing market conditions. The Company estimates that deposit insurance and other deposit protection programs secure more than
Off-balance sheet accounts are primarily utilized to accommodate larger business customers with significant deposits who require daily access to funds and desire FDIC insurance coverage. These off-balance sheet deposits were
Trust assets under administration increased
Asset Quality
The allowance for credit losses was
Past due loans for a period of 31-89 days decreased to
As of June 30, 2024, classified loans were
Significant macroeconomic and geopolitical factors are present and evolving and the Company continues to monitor their possible impact on the performance of the loan portfolio.
BNC's loans held for investment are geographically concentrated in
The
The
The following table approximately describes the Company's concentrations by:
Loans Held for Investment by Industry Sector | |||||||||||
(in thousands) | June 30, 2024 | December 31, 2023 | |||||||||
Non-owner Occupied Commercial Real estate – not otherwise categorized | $ | 193,127 | 28 | % | $ | 198,428 | 30 | % | |||
Consumer, not otherwise categorized | 103,451 | 15 | 99,702 | 15 | |||||||
Hotels | 82,704 | 12 | 83,985 | 13 | |||||||
Retail trade | 36,171 | 5 | 35,827 | 5 | |||||||
Healthcare and social assistance | 39,798 | 6 | 32,011 | 5 | |||||||
Agriculture, forestry, fishing and hunting | 36,622 | 5 | 33,503 | 5 | |||||||
Transportation and warehousing | 29,694 | 4 | 27,905 | 4 | |||||||
Art, entertainment and recreation | 28,122 | 4 | 27,507 | 4 | |||||||
Non-hotel accommodation and food service | 25,515 | 4 | 24,637 | 4 | |||||||
Mining, oil and gas extraction | 21,483 | 3 | 22,149 | 3 | |||||||
Other service | 13,775 | 2 | 11,940 | 2 | |||||||
Construction contractors | 12,073 | 2 | 16,082 | 2 | |||||||
Professional, scientific, and technical services | 11,585 | 2 | 9,570 | 1 | |||||||
Real estate and rental and leasing support services | 9,761 | 2 | 9,804 | 2 | |||||||
Manufacturing | 9,665 | 2 | 7,801 | 1 | |||||||
Finance and insurance | 9,141 | 1 | 6,781 | 1 | |||||||
Public administration | 7,365 | 1 | 7,837 | 1 | |||||||
Educational services | 6,339 | 1 | 4,246 | 1 | |||||||
All other | 9,504 | 1 | 8,051 | 1 | |||||||
Gross loans held for investment | $ | 685,895 | 100 | % | $ | 667,766 | 100 | % |
The Company's loans to the hospitality industry have shown signs of improved credit quality that are reflected by improved hotel occupancy and restaurant utilization trends. Hotel operators in BNC's loan portfolio are reporting positive trends and, in some cases, stronger balance sheets. Despite these positive indications, labor shortages limit the ability of the industry to fully capitalize on these trends and the potential for inflationary impacts on travel and leisure activities continue to be closely monitored. As of June 30, 2024, the Company's loans related to office space were
Capital
Banks and bank holding companies operate under separate regulatory capital requirements. As of June 30, 2024, the Company's capital ratios exceeded all regulatory capital thresholds, including the capital conservation buffer.
A summary of BNC's capital ratios is presented below:
June 30, 2024 | December 31, 2023 | |||
BNCCORP, INC. (Consolidated) | ||||
Tier 1 leverage | 14.30 % | 14.52 % | ||
Common equity tier 1 risk based capital | 13.81 % | 14.58 % | ||
Tier 1 risk based capital | 15.71 % | 16.49 % | ||
Total risk based capital | 16.87 % | 17.64 % | ||
Tangible common equity | 11.16 % | 11.19 % | ||
BNC National Bank | ||||
Tier 1 leverage | 13.36 % | 12.54 % | ||
Common equity tier 1 risk based capital | 14.68 % | 14.25 % | ||
Tier 1 risk based capital | 14.68 % | 14.25 % | ||
Total risk based capital | 15.84 % | 15.40 % | ||
Tangible common equity | 11.98 % | 10.96 % |
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 the Bank's 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.
The Company regularly evaluates the sufficiency of its capital to ensure compliance with regulatory capital standards and to serve as a source of strength for the Bank. The Company manages capital by assessing the composition of capital and the amounts available for growth, risk, or other purposes.
The Company made an election at the adoption of
The decrease in consolidated capital ratios was due to the
Share Repurchases
In December 2020, our Board of Directors approved a share repurchase program authorizing the Company to repurchase up to 175,000 shares of BNCCORP, INC. outstanding common stock. During the first quarter of 2024, the Company repurchased 50,000 shares of common stock for a total cost of
About BNCCORP, INC.
BNCCORP, INC., headquartered in
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", "at the present time", "plan", "optimistic", "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 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 or future pandemics 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 pandemics, 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 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 GAAP. Such non-GAAP financial measures include tangible common equity to total period end assets ratio. 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 Ended June 30, | For the Six Months Ended June 30, | |||||||||||
(In thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||
INCOME STATEMENT | ||||||||||||
Interest income | $ | 11,251 | $ | 10,697 | $ | 22,928 | $ | 20,703 | ||||
Interest expense | 3,654 | 2,654 | 7,472 | 4,219 | ||||||||
Net interest income | 7,597 | 8,043 | 15,456 | 16,484 | ||||||||
Provision for credit losses | 30 | 165 | 245 | 405 | ||||||||
Net interest income after provision for credit losses | 7,567 | 7,878 | 15,211 | 16,079 | ||||||||
Non-interest income | ||||||||||||
Bank charges and service fees | 774 | 885 | 1,567 | 1,977 | ||||||||
Wealth management revenues | 502 | 483 | 1,000 | 970 | ||||||||
Mortgage banking revenues | - | 2,292 | - | 4,148 | ||||||||
Gains on sales of loans, net | 3 | 2 | 3 | 10 | ||||||||
Gains on sales of debt securities, net | - | - | - | 12 | ||||||||
Other | 189 | 50 | 436 | 226 | ||||||||
Total non-interest income | 1,468 | 3,712 | 3,006 | 7,343 | ||||||||
Non-interest expense | ||||||||||||
Salaries and employee benefits | 3,769 | 5,061 | 7,812 | 10,004 | ||||||||
Professional services | 263 | 1,689 | 518 | 2,586 | ||||||||
Data processing fees | 862 | 1,064 | 1,707 | 2,053 | ||||||||
Marketing and promotion | 194 | 1,360 | 382 | 2,729 | ||||||||
Occupancy | 378 | 482 | 768 | 994 | ||||||||
Regulatory costs | 137 | 94 | 272 | 200 | ||||||||
Depreciation and amortization | 273 | 284 | 539 | 577 | ||||||||
Office supplies and postage | 102 | 132 | 198 | 228 | ||||||||
Other | 626 | 674 | 1,315 | 1,375 | ||||||||
Total non-interest expense | 6,604 | 10,840 | 13,511 | 20,746 | ||||||||
Income before taxes | 2,431 | 750 | 4,706 | 2,676 | ||||||||
Income tax expense | 571 | 176 | 1,106 | 629 | ||||||||
Net income | $ | 1,860 | $ | 574 | $ | 3,600 | $ | 2,047 | ||||
WEIGHTED AVERAGE SHARES | ||||||||||||
Common shares outstanding (a) | 3,533,359 | 3,578,029 | 3,555,215 | 3,576,803 | ||||||||
Dilutive effect of share-based compensation | 5,793 | 2,244 | 5,516 | 2,281 | ||||||||
Adjusted weighted average shares (b) | 3,539,152 | 3,580,273 | 3,560,731 | 3,579,084 | ||||||||
EARNINGS PER SHARE DATA | ||||||||||||
Basic earnings per common share | $ | 0.53 | $ | 0.16 | $ | 1.01 | $ | 0.57 | ||||
Diluted earnings per common share | $ | 0.53 | $ | 0.16 | $ | 1.01 | $ | 0.57 |
(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) | June 30, 2024 | December 31, 2023 | June 30, 2023 | ||||||
BALANCE SHEET DATA | |||||||||
Cash and cash equivalents | $ | 56,104 | $ | 102,454 | $ | 16,640 | |||
Debt securities available for sale | 135,082 | 159,772 | 165,745 | ||||||
FRB and FHLB stock | 2,387 | 2,372 | 2,938 | ||||||
Loans held for sale-mortgage banking | - | - | 67,228 | ||||||
Loans held for investment | 687,009 | 668,808 | 640,989 | ||||||
Allowance for credit losses | (9,448) | (9,284) | (9,000) | ||||||
Net loans held for investment | 677,561 | 659,524 | 631,989 | ||||||
Premises and equipment, net | 11,102 | 10,955 | 11,247 | ||||||
Operating lease right of use asset | 771 | 938 | 867 | ||||||
Accrued interest receivable | 4,299 | 4,206 | 3,458 | ||||||
Other | 28,513 | 27,984 | 29,661 | ||||||
Total assets | $ | 915,819 | $ | 968,205 | $ | 929,773 | |||
Deposits: | |||||||||
Non-interest-bearing | $ | 171,112 | $ | 184,442 | $ | 181,508 | |||
Interest-bearing – | |||||||||
Savings, interest checking and money market | 546,080 | 582,855 | 563,878 | ||||||
Time deposits | 75,173 | 69,906 | 59,111 | ||||||
Total deposits | 792,365 | 837,203 | 804,497 | ||||||
Guaranteed preferred beneficial interest in Company's subordinated debentures | 15,464 | 15,464 | 15,000 | ||||||
Accrued interest payable | 1,095 | 937 | 451 | ||||||
Accrued expenses | 2,856 | 4,105 | 4,987 | ||||||
Operating lease liabilities | 870 | 1,048 | 986 | ||||||
Other | 854 | 1,030 | 1,026 | ||||||
Total liabilities | 813,504 | 859,787 | 826,947 | ||||||
Common stock | 35 | 36 | 36 | ||||||
Capital surplus – common stock | 26,841 | 26,572 | 26,634 | ||||||
Retained earnings | 88,643 | 93,186 | 89,528 | ||||||
Treasury stock | (2,687) | (1,528) | (1,664) | ||||||
Accumulated other comprehensive income, net | (10,517) | (9,848) | (11,708) | ||||||
Total stockholders' equity | 102,315 | 108,418 | 102,826 | ||||||
Total liabilities and stockholders' equity | $ | 915,819 | $ | 968,205 | $ | 929,773 | |||
OTHER SELECTED DATA | |||||||||
Trust assets under administration | $ | 403,839 | $ | 388,829 | $ | 380,422 | |||
Core deposits (1) | $ | 792,365 | $ | 837,203 | $ | 804,497 | |||
Tangible book value per common share (2) | $ | 29.05 | $ | 30.38 | $ | 28.87 | |||
Tangible book value per common share excluding accumulated other comprehensive income, net | $ | 32.04 | $ | 33.13 | $ | 32.16 | |||
Full time equivalent employees | 139 | 144 | 207 | ||||||
Common shares outstanding | 3,521,710 | 3,569,210 | 3,561,334 |
(1) | Core deposits consist of all deposits and repurchase agreements with customers. |
(2) | Tangible book value per common share is equal to book value per common share. |
BNCCORP, INC. CONSOLIDATED FINANCIAL DATA (Unaudited) | |||||||||||||||||||||||||
AVERAGE BALANCE, YIELD EARNED, AND COST PAID | For the Quarter Ended June 30, 2024 | For the Quarter Ended June 30, 2023 | Quarter-Over-Quarter Comparison | ||||||||||||||||||||||
(dollars in thousands) | Average | Interest | Average | Average | Interest | Average | Change Due to | ||||||||||||||||||
Rate | Volume | Total | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Interest-bearing due from banks | $ | 46,258 | $ | 631 | 5.48 % | $ | 27,829 | $ | 358 | 5.15 % | $ | 24 | $ | 249 | $ | 273 | |||||||||
FRB and FHLB stock | 2,387 | 38 | 6.40 % | 2,938 | 36 | 4.91 % | 7 | (5) | 2 | ||||||||||||||||
Debt securities available for sale | 136,806 | 1,173 | 3.45 % | 170,176 | 1,361 | 3.21 % | 96 | (284) | (188) | ||||||||||||||||
Loans held for sale-mortgage banking | - | - | 0.00 % | 53,857 | 732 | 5.45 % | (366) | (366) | (732) | ||||||||||||||||
Loans held for investment | 677,454 | 9,409 | 5.59 % | 629,712 | 8,210 | 5.23 % | 557 | 642 | 1,199 | ||||||||||||||||
Allowance for credit losses | (9,431) | - | 0.00 % | (8,922) | - | 0.00 % | - | - | - | ||||||||||||||||
Total | $ | 853,474 | $ | 11,251 | 5.30 % | $ | 875,590 | $ | 10,697 | 4.90 % | $ | 318 | $ | 236 | $ | 554 | |||||||||
Liabilities | |||||||||||||||||||||||||
Interest checking and money market | $ | 497,882 | $ | 2,803 | 2.26 % | $ | 516,489 | $ | 2,238 | 1.74 % | $ | 463 | $ | 102 | $ | 565 | |||||||||
Savings | 43,278 | 12 | 0.11 % | 48,099 | 13 | 0.11 % | - | (1) | (1) | ||||||||||||||||
Time deposits | 70,535 | 575 | 3.28 % | 54,150 | 154 | 1.14 % | 360 | 61 | 421 | ||||||||||||||||
Short-term borrowings | - | - | 0.00 % | 212 | - | 0.00 % | - | - | - | ||||||||||||||||
Subordinated debentures | 15,464 | 264 | 6.86 % | 15,000 | 249 | 6.67 % | 7 | 8 | 15 | ||||||||||||||||
Total | $ | 627,159 | $ | 3,654 | 2.34 % | $ | 633,950 | $ | 2,654 | 1.68 % | $ | 830 | $ | 170 | $ | 1,000 | |||||||||
Net Interest Income | $ | 7,597 | $ | 8,043 | |||||||||||||||||||||
Net Interest Spread | 2.96 % | 3.22 % | |||||||||||||||||||||||
Net Interest Margin | 3.58 % | 3.68 % | |||||||||||||||||||||||
AVERAGE BALANCE, YIELD EARNED, AND COST PAID | For the Six Months Ended June 30, 2024 | For the Six Months Ended June 30, 2023 | Six Month Comparison | ||||||||||||||||||||||
(dollars in thousands) | Average | Interest | Average | Average | Interest | Average | Change Due to | ||||||||||||||||||
Rate | Volume | Total | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Interest-bearing due from banks | $ | 65,896 | $ | 1,796 | 5.48 % | $ | 33,998 | $ | 793 | 4.70 % | $ | 151 | $ | 852 | $ | 1,003 | |||||||||
FRB and FHLB stock | 2,380 | 71 | 6.00 % | 3,008 | 72 | 4.83 % | 11 | (12) | (1) | ||||||||||||||||
Debt securities available for sale | 142,325 | 2,437 | 3.44 % | 172,871 | 2,737 | 3.19 % | 189 | (489) | (300) | ||||||||||||||||
Loans held for sale-mortgage banking | - | - | 0.00 % | 41,492 | 1,130 | 5.49 % | (565) | (565) | (1,130) | ||||||||||||||||
Loans held for investment | 674,745 | 18,624 | 5.55 % | 626,507 | 15,971 | 5.14 % | 1,342 | 1,311 | 2,653 | ||||||||||||||||
Allowance for credit losses | (9,357) | - | 0.00 % | (8,844) | - | 0.00 % | - | - | - | ||||||||||||||||
Total | $ | 875,989 | $ | 22,928 | 5.26 % | $ | 869,032 | $ | 20,703 | 4.81 % | $ | 1,128 | $ | 1,097 | $ | 2,225 | |||||||||
Liabilities | |||||||||||||||||||||||||
Interest checking and money market | $ | 514,559 | $ | 5,838 | 2.28 % | $ | 502,764 | $ | 3,478 | 1.40 % | $ | 1,403 | $ | 957 | $ | 2,360 | |||||||||
Savings | 43,174 | 23 | 0.11 % | 50,517 | 24 | 0.09 % | 3 | (4) | (1) | ||||||||||||||||
Time deposits | 70,025 | 1,085 | 3.12 % | 53,933 | 231 | 0.86 % | 764 | 90 | 854 | ||||||||||||||||
Short-term borrowings | - | - | 0.00 % | 501 | 6 | 2.42 % | (3) | (3) | (6) | ||||||||||||||||
Subordinated debentures | 15,464 | 526 | 6.84 % | 15,000 | 480 | 6.45 % | 30 | 16 | 46 | ||||||||||||||||
Total | $ | 643,222 | $ | 7,472 | 2.34 % | $ | 622,715 | $ | 4,219 | 1.37 % | $ | 2,197 | $ | 1,056 | $ | 3,253 | |||||||||
Net Interest Income | $ | 15,456 | $ | 16,484 | |||||||||||||||||||||
Net Interest Spread | 2.93 % | 3.44 % | |||||||||||||||||||||||
Net Interest Margin | 3.55 % | 3.83 % |
BNCCORP, INC. CONSOLIDATED FINANCIAL DATA (Unaudited) | ||||||||||||
For the Quarter Ended June 30, | For the Six Months Ended June 30, | |||||||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||
OTHER AVERAGE BALANCES | ||||||||||||
Total assets | 907,476 | 930,674 | 929,850 | 923,692 | ||||||||
Core deposits | 784,981 | 804,922 | 803,323 | 798,482 | ||||||||
Total equity | 101,024 | 104,780 | 102,420 | 103,782 | ||||||||
KEY RATIOS | ||||||||||||
Return on average common stockholders' equity (a) | 6.67 % | 2.00 % | 6.39 % | 3.61 % | ||||||||
Return on average assets (b) | 0.82 % | 0.25 % | 0.78 % | 0.45 % | ||||||||
Efficiency ratio (Consolidated) | 72.86 % | 92.22 % | 73.18 % | 87.07 % | ||||||||
Efficiency ratio (Bank) | 69.22 % | 88.71 % | 69.40 % | 83.78 % |
(a) | Return on average common stockholders' equity is calculated by using net income as the numerator and average common equity (less accumulated other comprehensive income (loss)) 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 | |||||||||
(In thousands) | June 30, 2024 | December 31, 2023 | June 30, 2023 | ||||||
ASSET QUALITY | |||||||||
Loans 90 days or more delinquent and accruing interest | $ | 85 | $ | 832 | $ | - | |||
Non-accrual loans | 2,970 | 2,519 | 1,434 | ||||||
Total nonperforming loans | $ | 3,055 | $ | 3,351 | $ | 1,434 | |||
Repossessed assets, net | 11 | 33 | 42 | ||||||
Total nonperforming assets | $ | 3,066 | $ | 3,384 | $ | 1,476 | |||
Allowance for credit losses | $ | 9,448 | $ | 9,284 | $ | 9,000 | |||
Ratio of total nonperforming loans to total loans | 0.44 % | 0.50 % | 0.20 % | ||||||
Ratio of total nonperforming assets to total assets | 0.33 % | 0.35 % | 0.16 % | ||||||
Ratio of nonperforming loans to total assets | 0.33 % | 0.35 % | 0.15 % | ||||||
Ratio of allowance for credit losses to loans held for investment | 1.38 % | 1.39 % | 1.40 % | ||||||
Ratio of allowance for credit losses to total loans | 1.38 % | 1.39 % | 1.27 % | ||||||
Ratio of allowance for credit losses to nonperforming loans | 309 % | 277 % | 628 % |
For the Quarter Ended June 30, | For the Six Months Ended June 30, | |||||||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||
Changes in Nonperforming Loans: | ||||||||||||
Balance, beginning of period | $ | 3,433 | $ | 1,469 | $ | 3,351 | $ | 1,355 | ||||
Additions to nonperforming | 617 | 121 | 1,583 | 332 | ||||||||
Charge-offs | (1) | (80) | (2) | (87) | ||||||||
Reclassified back to performing | (883) | - | (1,715) | (1) | ||||||||
Principal payments received | (97) | (45) | (130) | (119) | ||||||||
Transferred to repossessed assets | (14) | (31) | (32) | (46) | ||||||||
Balance, end of period | $ | 3,055 | $ | 1,434 | $ | 3,055 | $ | 1,434 |
BNCCORP, INC. CONSOLIDATED FINANCIAL DATA (Unaudited) | ||||||||||||
For the Quarter Ended June 30, | For the Six Months Ended June 30, | |||||||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||
Changes in Allowance for Credit Losses: | ||||||||||||
Balance, beginning of period | $ | 9,623 | $ | 9,145 | $ | 9,459 | $ | 8,831 | ||||
Cumulative effect of CECL adoption | - | - | - | 125 | ||||||||
Provision | 30 | 165 | 245 | 405 | ||||||||
Loans charged off | (74) | (108) | (129) | (165) | ||||||||
Loan recoveries | 24 | 10 | 28 | 16 | ||||||||
Balance, end of period | $ | 9,603 | $ | 9,212 | $ | 9,603 | $ | 9,212 | ||||
Components: | ||||||||||||
Allowance for loan losses | $ | 9,448 | $ | 9,000 | $ | 9,448 | $ | 9,000 | ||||
Allowance for unfunded commitments | $ | 155 | $ | 212 | $ | 155 | $ | 212 | ||||
Ratio of net charge-offs to average total loans | (0.007) % | (0.014) % | (0.015) % | (0.022) % | ||||||||
Ratio of net charge-offs to average total loans, annualized | (0.030) % | (0.057) % | (0.030) % | (0.045) % |
As of | |||||||||
(In thousands) | June 30, 2024 | December 31, 2023 | June 30, 2023 | ||||||
CREDIT CONCENTRATIONS | |||||||||
Commercial and industrial | $ | 63,168 | $ | 62,019 | $ | 63,052 | |||
Construction | 1,420 | 5,247 | 16,550 | ||||||
Agricultural | 38,701 | 35,220 | 31,062 | ||||||
Land and land development | 8,507 | 7,992 | 6,225 | ||||||
Owner-occupied commercial real estate | 36,596 | 35,260 | 31,637 | ||||||
Commercial real estate | 134,852 | 135,858 | 124,619 | ||||||
Small business administration | 18,843 | 18,046 | 17,782 | ||||||
Consumer | 91,974 | 88,066 | 84,891 | ||||||
Subtotal gross loans held for investment | $ | 394,061 | $ | 387,708 | $ | 375,818 | |||
Consolidated | |||||||||
Commercial and industrial | $ | 95,577 | $ | 93,949 | $ | 97,856 | |||
Construction | 8,474 | 21,648 | 34,821 | ||||||
Agricultural | 41,702 | 37,720 | 33,587 | ||||||
Land and land development | 10,689 | 8,416 | 7,862 | ||||||
Owner-occupied commercial real estate | 86,706 | 84,386 | 75,225 | ||||||
Commercial real estate | 250,784 | 245,939 | 232,222 | ||||||
Small business administration | 75,030 | 63,836 | 55,862 | ||||||
Consumer | 116,933 | 111,872 | 102,476 | ||||||
Total gross loans held for investment | $ | 685,895 | $ | 667,766 | $ | 639,911 |
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SOURCE BNCCORP, INC.
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