BNCCORP, INC. REPORTS THIRD QUARTER NET INCOME OF $2.1 MILLION, OR $0.59 PER DILUTED SHARE
BNCCORP (BNCC) reported Q3 2024 net income of $2.1 million ($0.59 per diluted share), up 37.4% from $1.5 million in Q3 2023. The Community Banking segment posted net income of $2.4 million. Key metrics include improved efficiency ratio of 69.02%, loans held for investment increased 2.2% to $683.2 million, and loan-to-deposit ratio rose to 85.8%. The company maintained a strong margin of 3.50% while managing deposit costs below market rates. Nonperforming assets were $5.9 million (0.64% of total assets), with $4.8 million supported by government guarantees. Tangible book value per share increased to $30.60, and the tangible common equity capital ratio improved to 11.65%.
BNCCORP (BNCC) ha riportato un utile netto per il terzo trimestre del 2024 di $2,1 milioni ($0,59 per azione diluita), in aumento del 37,4% rispetto a $1,5 milioni nel terzo trimestre del 2023. Il segmento Banking Community ha registrato un utile netto di $2,4 milioni. I principali indicatori includono un miglioramento del rapporto di efficienza al 69,02%, prestiti detenuti per investimento aumentati del 2,2% a $683,2 milioni, e un rapporto prestiti-depositi salito all'85,8%. L'azienda ha mantenuto un margine solido del 3,50% gestendo i costi dei depositi al di sotto dei tassi di mercato. Gli attivi non performanti ammontavano a $5,9 milioni (0,64% del totale degli attivi), con $4,8 milioni sostenuti da garanzie governative. Il valore contabile tangibile per azione è aumentato a $30,60 e il rapporto di capitale comune tangibile è migliorato all'11,65%.
BNCCORP (BNCC) informó un ingreso neto del tercer trimestre de 2024 de $2.1 millones ($0.59 por acción diluida), un aumento del 37.4% en comparación con $1.5 millones en el tercer trimestre de 2023. El segmento de Banca Comunitaria registró un ingreso neto de $2.4 millones. Las métricas clave incluyen una mejora en el ratio de eficiencia del 69.02%, los préstamos mantenidos para inversión aumentaron un 2.2% a $683.2 millones, y la relación préstamos-depósitos subió al 85.8%. La empresa mantuvo un margen sólido del 3.50% mientras gestionaba los costos de los depósitos por debajo de las tasas de mercado. Los activos no rentables ascendían a $5.9 millones (0.64% del total de activos), con $4.8 millones respaldados por garantías gubernamentales. El valor contable tangible por acción aumentó a $30.60, y el ratio de capital común tangible mejoró al 11.65%.
BNCCORP (BNCC)는 2024년 3분기 순이익으로 $2.1백만을 보고했습니다 ($0.59의 희석 주당 손실), 이는 2023년 3분기의 $1.5백만에 비해 37.4% 증가한 수치입니다. 커뮤니티 뱅킹 부문은 $2.4백만의 순이익을 기록했습니다. 주요 지표로는 69.02%의 개선된 효율성 비율, 투자용으로 보유한 대출이 2.2% 증가한 $683.2백만, 대출-예금 비율이 85.8%로 상승한 점 등이 있습니다. 회사는 시장 금리보다 낮은 예금 비용을 관리하면서 3.50%의 강한 마진을 유지했습니다. 비수익 자산은 $5.9백만(총 자산의 0.64%)이며, $4.8백만은 정부 보증을 받았습니다. 주당 유형 자본 가치는 $30.60로 증가하였으며 유형 공통 자본 비율은 11.65%로 개선되었습니다.
BNCCORP (BNCC) a annoncé un revenu net pour le troisième trimestre 2024 de 2,1 millions de dollars (0,59 $ par action diluée), en hausse de 37,4 % par rapport à 1,5 million de dollars au troisième trimestre 2023. Le segment de la banque communautaire a affiché un revenu net de 2,4 millions de dollars. Les indicateurs clés incluent un ratio d'efficacité amélioré de 69,02 %, les prêts détenus pour investissement ayant augmenté de 2,2 % pour atteindre 683,2 millions de dollars, et le ratio prêts/dépôts passant à 85,8 %. L'entreprise a maintenu une marge solide de 3,50 % tout en gérant les coûts des dépôts en dessous des taux du marché. Les actifs non performants s'élevaient à 5,9 millions de dollars (0,64 % du total des actifs), dont 4,8 millions de dollars soutenus par des garanties gouvernementales. La valeur comptable tangible par action a augmenté à 30,60 dollars, et le ratio de capital commun tangible a été amélioré à 11,65 %.
BNCCORP (BNCC) hat für das dritte Quartal 2024 einen Nettogewinn von 2,1 Millionen US-Dollar ($0,59 pro verwässerter Aktie) gemeldet, was einem Anstieg von 37,4 % im Vergleich zu 1,5 Millionen US-Dollar im dritten Quartal 2023 entspricht. Das Segment Community Banking erzielte einen Nettogewinn von 2,4 Millionen US-Dollar. Zu den wichtigsten Kennzahlen gehören ein verbesserter Effizienzgrad von 69,02 %, Kredite, die für Investitionen gehalten werden, stiegen um 2,2 % auf 683,2 Millionen US-Dollar, und das Verhältnis von Krediten zu Einlagen erhöhte sich auf 85,8 %. Das Unternehmen hielt eine starke Marge von 3,50 %, während es die Einlagenkosten unter den Marktzinssätzen hielt. Die nicht leistungsfähigen Vermögenswerte beliefen sich auf 5,9 Millionen US-Dollar (0,64 % der Gesamtvermögen), wobei 4,8 Millionen US-Dollar von Regierungsgarantien gestützt wurden. Der buchwertähnliche Wert pro Aktie stieg auf 30,60 US-Dollar, und das Verhältnis des buchwertähnlichen Eigenkapitals verbesserte sich auf 11,65 %.
- Net income increased 37.4% year-over-year to $2.1 million
- Efficiency ratio improved from 75.50% to 69.02%
- Loans held for investment grew 2.2% to $683.2 million
- Yield on loans increased to 5.58% from 5.36% year-over-year
- Strong capital position with 11.65% tangible common equity ratio
- Nonperforming assets increased to $5.9 million (0.64% of total assets) from $3.4 million (0.35%)
- Total deposits decreased $41.4 million to $795.8 million
- Net interest margin declined to 3.50% from 3.57% year-over-year
- Cost of core deposits increased to 1.84% from 1.47%
Highlights
- Net income during the third quarter of 2024 increased
or$564 thousand 37.4% , to , or$2.1 million per diluted share, from$0.59 , or$1.5 million per diluted share, in the 2023 period.$0.42 - Third quarter 2024 return on average assets of
0.89% compared to0.65% in the 2023 period. - The efficiency ratio improved to
69.02% in the third quarter of 2024 versus75.50% in the third quarter of 2023. - For the quarter, the Community Banking segment reported net income of
, or$2.4 million per diluted share, compared to net income of$0.67 , or$2.2 million per diluted share, in the same period of 2023.$0.61 - Yield on loans held for investment was
5.58% for the third quarter of 2024 compared to5.36% in the third quarter of 2023. - Loans held for investment have increased
, or$14.4 million 2.2% , to at September 30, 2024 from$683.2 million at December 31, 2023.$668.8 million - The ratio of loans held for investment-to-deposits increased to
85.8% at September 30, 2024 from79.9% at December 31, 2023. - Allowance for credit losses as of September 30, 2024, increased to
1.40% of loans held for investment compared to1.39% as of December 31, 2023.
Management Commentary
"The Company delivered solid third-quarter results with net income rising by
Mr. Collins added, "As we move into the final quarter of 2024, our focus remains on steady growth, disciplined lending, prudent expense control, and strong risk management. Our efficiency ratio also continues to improve, demonstrating our ability to manage costs effectively, which will remain a key focus moving forward. In short, we believe our strategic posture remains sound and our ability to execute on that strategy remains one of our strengths."
2024 Versus 2023 Third Quarter Comparison | |||||||||||||||
SEGMENT DATA | For the Quarter Ended September 30, 2024 | ||||||||||||||
(in thousands) | Community Banking | Mortgage Banking (a) | Holding Company | Intercompany Eliminations | BNCCORP Consolidated | ||||||||||
Net interest income (expense) | $ | 7,928 | $ | - | $ | (249) | $ | - | $ | 7,679 | |||||
Provision for credit losses | 110 | - | - | - | 110 | ||||||||||
Non-interest income | 1,492 | - | 594 | (672) | 1,414 | ||||||||||
Non-interest expense | 6,222 | - | 726 | (672) | 6,276 | ||||||||||
Income (loss) before taxes | 3,088 | - | (381) | - | 2,707 | ||||||||||
Income tax expense (benefit) | 725 | - | (89) | - | 636 | ||||||||||
Net income (loss) | $ | 2,363 | $ | - | $ | (292) | $ | - | $ | 2,071 | |||||
For the Quarter Ended September 30, 2023 | |||||||||||||||
Community Banking | Mortgage Banking | Holding Company | Intercompany Eliminations | BNCCORP Consolidated | |||||||||||
Net interest income (expense) | $ | 7,908 | $ | 171 | $ | (219) | $ | - | $ | 7,860 | |||||
Provision for credit losses | 230 | - | - | - | 230 | ||||||||||
Non-interest income | 1,578 | (381) | 559 | (638) | 1,118 | ||||||||||
Non-interest expense | 6,379 | 322 | 715 | (638) | 6,778 | ||||||||||
Income (loss) before taxes | 2,877 | (532) | (375) | - | 1,970 | ||||||||||
Income tax expense (benefit) | 683 | (132) | (88) | - | 463 | ||||||||||
Net income (loss) | $ | 2,194 | $ | (400) | $ | (287) | $ | - | $ | 1,507 |
(a) The Company divested the mortgage banking segment in 2023. |
The Community Banking Segment reported net income of
Consolidated net interest income for the third quarter of 2024 was
On a consolidated basis, third-quarter interest income increased
Consolidated interest expense in the third quarter of 2024 was
The consolidated average balance of deposits decreased by
As of September 30, 2024, nonperforming assets were
Non-interest income for the Community Banking Segment during the third quarter of 2024 was
Non-interest expense for the Community Banking Segment during the third quarter of 2024 decreased
In the third quarter of 2024, consolidated income tax expense was
Tangible book value per common share on September 30, 2024, was
2024 Versus 2023 Nine-Month Comparison | |||||||||||||||
SEGMENT DATA | For the Nine Months Ended September 30, 2024 | ||||||||||||||
(in thousands) | Community Banking | Mortgage Banking (a) | Holding Company | Intercompany Eliminations | BNCCORP Consolidated | ||||||||||
Net interest income (expense) | $ | 23,851 | $ | - | $ | (716) | $ | - | $ | 23,135 | |||||
Provision for credit losses | 355 | - | - | - | 355 | ||||||||||
Non-interest income | 4,659 | - | 1,731 | (1,970) | 4,420 | ||||||||||
Non-interest expense | 19,464 | - | 2,293 | (1,970) | 19,787 | ||||||||||
Income (loss) before taxes | 8,691 | - | (1,278) | - | 7,413 | ||||||||||
Income tax expense (benefit) | 2,042 | - | (300) | - | 1,742 | ||||||||||
Net income (loss) | $ | 6,649 | $ | - | $ | (978) | $ | - | $ | 5,671 | |||||
For the Nine Months Ended September 30, 2023 | |||||||||||||||
Community Banking | Mortgage Banking | Holding Company | Intercompany Eliminations | BNCCORP Consolidated | |||||||||||
Net interest income (expense) | $ | 24,519 | $ | 473 | $ | (648) | $ | - | $ | 24,344 | |||||
Provision for credit losses | 635 | - | - | - | 635 | ||||||||||
Non-interest income | 5,755 | 3,638 | 1,630 | (2,562) | 8,461 | ||||||||||
Non-interest expense | 19,068 | 8,781 | 2,237 | (2,562) | 27,524 | ||||||||||
Income (loss) before taxes | 10,571 | (4,670) | (1,255) | - | 4,646 | ||||||||||
Income tax expense (benefit) | 2,545 | (1,158) | (295) | - | 1,092 | ||||||||||
Net income (loss) | $ | 8,026 | $ | (3,512) | $ | (960) | $ | - | $ | 3,554 |
(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 nine months of 2024 was
On a consolidated basis, the 2024 nine-month period interest income increased
Consolidated interest expense in the first nine months of 2024 was
The average balance of deposits increased by
Non-interest income for the Community Banking Segment in the first nine months of 2024 was
Non-interest expense for the Community Banking Segment in the first nine months of 2024 increased
During the nine-month period ended September 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) | September 30, 2024 | December 31, 2023 | September 30, 2023 | ||||||
Deposits: | |||||||||
Non-interest-bearing | $ | 174,620 | $ | 184,442 | $ | 180,045 | |||
Interest-bearing – | |||||||||
Savings, interest checking and money market | 540,910 | 582,855 | 543,909 | ||||||
Time deposits | 80,297 | 69,906 | 65,572 | ||||||
Total on balance sheet deposits | 795,827 | 837,203 | 789,526 | ||||||
Off-balance sheet deposits (1) | 20,087 | 34,792 | 40,232 | ||||||
Total available deposits | $ | 815,914 | $ | 871,995 | $ | 829,758 |
(1) | The off-balance sheet deposits above do not include off-balance sheet time deposits that can be brought back on the balance sheet at various future maturity dates. As of September 30, 2024, the Company managed off-balance sheet time deposit balances of |
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 September 30, 2024, classified loans were
Significant macroeconomic and geopolitical factors are present and evolving; the Company continues to monitor the possible impact of these factors 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 industry:
Loans Held for Investment by Industry Sector | |||||||||||
(in thousands) | September 30, 2024 | December 31, 2023 | |||||||||
Non-owner Occupied Commercial Real estate – not otherwise categorized | $ | 194,287 | 29 | % | $ | 198,428 | 30 | % | |||
Consumer, not otherwise categorized | 103,861 | 15 | 99,702 | 15 | |||||||
Hotels | 82,160 | 12 | 83,985 | 13 | |||||||
Agriculture, forestry, fishing and hunting | 39,468 | 6 | 33,503 | 5 | |||||||
Retail trade | 32,435 | 5 | 35,827 | 5 | |||||||
Transportation and warehousing | 29,602 | 4 | 27,905 | 4 | |||||||
Healthcare and social assistance | 29,126 | 4 | 32,011 | 5 | |||||||
Art, entertainment and recreation | 27,834 | 4 | 27,507 | 4 | |||||||
Non-hotel accommodation and food service | 26,107 | 4 | 24,637 | 4 | |||||||
Mining, oil and gas extraction | 20,603 | 3 | 22,149 | 3 | |||||||
Real estate and rental and leasing support services | 16,341 | 2 | 9,804 | 2 | |||||||
Other service | 13,753 | 2 | 11,940 | 2 | |||||||
Construction contractors | 12,823 | 2 | 16,082 | 2 | |||||||
Manufacturing | 11,755 | 2 | 7,801 | 1 | |||||||
Professional, scientific, and technical services | 9,815 | 2 | 9,570 | 1 | |||||||
Finance and insurance | 8,957 | 1 | 6,781 | 1 | |||||||
Public administration | 7,384 | 1 | 7,837 | 1 | |||||||
Educational services | 6,075 | 1 | 4,246 | 1 | |||||||
All other | 9,685 | 1 | 8,051 | 1 | |||||||
Gross loans held for investment | $ | 682,071 | 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 September 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 September 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:
September 30, 2024 | December 31, 2023 | |||
BNCCORP, INC. (Consolidated) | ||||
Tier 1 leverage | 14.21 % | 14.52 % | ||
Common equity tier 1 risk based capital | 14.15 % | 14.58 % | ||
Tier 1 risk based capital | 16.05 % | 16.49 % | ||
Total risk based capital | 17.24 % | 17.64 % | ||
Tangible common equity | 11.65 % | 11.19 % | ||
BNC National Bank | ||||
Tier 1 leverage | 13.33 % | 12.54 % | ||
Common equity tier 1 risk based capital | 15.05 % | 14.25 % | ||
Tier 1 risk based capital | 15.05 % | 14.25 % | ||
Total risk based capital | 16.24 % | 15.40 % | ||
Tangible common equity | 12.49 % | 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 primarily 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.
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For the Quarter Ended September 30, | For the Nine Months Ended September 30, | |||||||||||
(In thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||
INCOME STATEMENT | ||||||||||||
Interest income | $ | 11,644 | $ | 11,086 | $ | 34,572 | $ | 31,789 | ||||
Interest expense | 3,965 | 3,226 | 11,437 | 7,445 | ||||||||
Net interest income | 7,679 | 7,860 | 23,135 | 24,344 | ||||||||
Provision for credit losses | 110 | 230 | 355 | 635 | ||||||||
Net interest income after provision for credit losses | 7,569 | 7,630 | 22,780 | 23,709 | ||||||||
Non-interest income | ||||||||||||
Bank charges and service fees | 728 | 815 | 2,295 | 2,792 | ||||||||
Wealth management revenues | 510 | 504 | 1,510 | 1,474 | ||||||||
Mortgage banking revenues | - | (381) | - | 3,767 | ||||||||
Gains on sales of loans, net | 7 | 5 | 10 | 15 | ||||||||
Gains on sales of debt securities, net | - | - | - | 12 | ||||||||
Other | 169 | 175 | 605 | 401 | ||||||||
Total non-interest income | 1,414 | 1,118 | 4,420 | 8,461 | ||||||||
Non-interest expense | ||||||||||||
Salaries and employee benefits | 3,569 | 3,673 | 11,381 | 13,677 | ||||||||
Professional services | 264 | 529 | 782 | 3,115 | ||||||||
Data processing fees | 898 | 862 | 2,605 | 2,915 | ||||||||
Marketing and promotion | 212 | 225 | 594 | 2,954 | ||||||||
Occupancy | 387 | 382 | 1,155 | 1,376 | ||||||||
Regulatory costs | 137 | 134 | 409 | 334 | ||||||||
Depreciation and amortization | 276 | 261 | 815 | 838 | ||||||||
Office supplies and postage | 83 | 94 | 281 | 322 | ||||||||
Other | 450 | 618 | 1,765 | 1,993 | ||||||||
Total non-interest expense | 6,276 | 6,778 | 19,787 | 27,524 | ||||||||
Income before taxes | 2,707 | 1,970 | 7,413 | 4,646 | ||||||||
Income tax expense | 636 | 463 | 1,742 | 1,092 | ||||||||
Net income | $ | 2,071 | $ | 1,507 | $ | 5,671 | $ | 3,554 | ||||
WEIGHTED AVERAGE SHARES | ||||||||||||
Common shares outstanding (a) | 3,533,413 | 3,578,029 | 3,547,895 | 3,577,216 | ||||||||
Dilutive effect of share-based compensation | 1,193 | 3,193 | 4,167 | 2,585 | ||||||||
Adjusted weighted average shares (b) | 3,534,606 | 3,581,222 | 3,552,062 | 3,579,801 | ||||||||
EARNINGS PER SHARE DATA | ||||||||||||
Basic earnings per common share | $ | 0.59 | $ | 0.42 | $ | 1.60 | $ | 0.99 | ||||
Diluted earnings per common share | $ | 0.59 | $ | 0.42 | $ | 1.60 | $ | 0.99 |
(a) | Denominator for basic earnings per common share |
(b) | Denominator for diluted earnings per common share |
BNCCORP, INC. | |||||||||
As of | |||||||||
(In thousands, except share, per-share and full-time equivalent data) | September 30, 2024 | December 31, 2023 | September 30, 2023 | ||||||
BALANCE SHEET DATA | |||||||||
Cash and cash equivalents | $ | 69,210 | $ | 102,454 | $ | 51,366 | |||
Debt securities available for sale | 135,594 | 159,772 | 158,016 | ||||||
FRB and FHLB stock | 2,387 | 2,372 | 2,938 | ||||||
Loans held for sale-mortgage banking | - | - | 120 | ||||||
Loans held for investment | 683,201 | 668,808 | 665,026 | ||||||
Allowance for credit losses | (9,531) | (9,284) | (9,146) | ||||||
Net loans held for investment | 673,670 | 659,524 | 655,880 | ||||||
Premises and equipment, net | 10,893 | 10,955 | 10,951 | ||||||
Operating lease right of use asset | 708 | 938 | 1,020 | ||||||
Accrued interest receivable | 3,951 | 4,206 | 3,851 | ||||||
Other | 27,994 | 27,984 | 29,215 | ||||||
Total assets | $ | 924,407 | $ | 968,205 | $ | 913,357 | |||
Deposits: | |||||||||
Non-interest-bearing | $ | 174,620 | $ | 184,442 | $ | 180,045 | |||
Interest-bearing – | |||||||||
Savings, interest checking and money market | 540,910 | 582,855 | 543,909 | ||||||
Time deposits | 80,297 | 69,906 | 65,572 | ||||||
Total deposits | 795,827 | 837,203 | 789,526 | ||||||
Guaranteed preferred beneficial interest in Company's subordinated debentures | 15,464 | 15,464 | 15,000 | ||||||
Accrued interest payable | 1,236 | 937 | 687 | ||||||
Accrued expenses | 2,503 | 4,105 | 3,630 | ||||||
Operating lease liabilities | 799 | 1,048 | 1,134 | ||||||
Other | 824 | 1,030 | 1,133 | ||||||
Total liabilities | 816,653 | 859,787 | 811,110 | ||||||
Common stock | 35 | 36 | 36 | ||||||
Capital surplus – common stock | 26,882 | 26,572 | 26,670 | ||||||
Retained earnings | 90,714 | 93,186 | 91,035 | ||||||
Treasury stock | (2,687) | (1,528) | (1,665) | ||||||
Accumulated other comprehensive income, net | (7,190) | (9,848) | (13,829) | ||||||
Total stockholders' equity | 107,754 | 108,418 | 102,247 | ||||||
Total liabilities and stockholders' equity | $ | 924,407 | $ | 968,205 | $ | 913,357 | |||
OTHER SELECTED DATA | |||||||||
Trust assets under administration | $ | 426,639 | $ | 388,829 | $ | 369,377 | |||
Core deposits (1) | $ | 795,827 | $ | 837,203 | $ | 789,526 | |||
Tangible book value per common share (2) | $ | 30.60 | $ | 30.38 | $ | 28.71 | |||
Tangible book value per common share excluding accumulated other comprehensive income, net | $ | 32.64 | $ | 33.13 | $ | 32.59 | |||
Full time equivalent employees | 137 | 144 | 145 | ||||||
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. | |||||||||||||||||||||||||
AVERAGE BALANCE, YIELD EARNED, AND COST PAID | For the Quarter Ended September 30, 2024 | For the Quarter Ended September 30, 2023 | Quarter-Over-Quarter Comparison | ||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest Earned or Paid | Average Yield or Cost | Average Balance | Interest Earned or Paid | Average Yield or Cost | Change Due to | ||||||||||||||||||
Rate | Volume | Total | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Interest-bearing due from banks | $ | 58,888 | $ | 800 | 5.40 % | $ | 40,980 | $ | 561 | 5.44 % | $ | (2) | $ | 241 | $ | 239 | |||||||||
FRB and FHLB stock | 2,387 | 38 | 6.33 % | 2,938 | 36 | 4.85 % | 9 | (7) | 2 | ||||||||||||||||
Debt securities available for sale | 134,947 | 1,157 | 3.41 % | 163,192 | 1,322 | 3.21 % | 77 | (242) | (165) | ||||||||||||||||
Loans held for sale-mortgage banking | - | - | 0.00 % | 24,378 | 384 | 6.24 % | (192) | (192) | (384) | ||||||||||||||||
Loans held for investment | 686,015 | 9,649 | 5.58 % | 650,109 | 8,783 | 5.36 % | 371 | 495 | 866 | ||||||||||||||||
Allowance for credit losses | (9,441) | - | 0.00 % | (8,980) | - | 0.00 % | - | - | - | ||||||||||||||||
Total | $ | 872,796 | $ | 11,644 | 5.31 % | $ | 872,617 | $ | 11,086 | 5.04 % | $ | 263 | $ | 295 | $ | 558 | |||||||||
Liabilities | |||||||||||||||||||||||||
Interest checking and money market | $ | 506,218 | $ | 2,979 | 2.33 % | $ | 515,959 | $ | 2,655 | 2.04 % | $ | 278 | $ | 46 | $ | 324 | |||||||||
Savings | 43,480 | 12 | 0.11 % | 43,957 | 12 | 0.11 % | - | - | - | ||||||||||||||||
Time deposits | 77,851 | 706 | 3.61 % | 61,909 | 296 | 1.90 % | 303 | 107 | 410 | ||||||||||||||||
Short-term borrowings | 3 | - | 0.00 % | - | - | 0.00 % | - | - | - | ||||||||||||||||
Subordinated debentures | 15,464 | 268 | 6.90 % | 15,000 | 263 | 6.95 % | (2) | 7 | 5 | ||||||||||||||||
Total | $ | 643,016 | $ | 3,965 | 2.45 % | $ | 636,825 | $ | 3,226 | 2.01 % | $ | 579 | $ | 160 | $ | 739 | |||||||||
Net Interest Income | $ | 7,679 | $ | 7,860 | |||||||||||||||||||||
Net Interest Spread | 2.85 % | 3.03 % | |||||||||||||||||||||||
Net Interest Margin | 3.50 % | 3.57 % |
AVERAGE BALANCE, YIELD EARNED, AND COST PAID | For the Nine Months Ended September 30, 2024 | For the Nine Months Ended September 30, 2023 | Nine Month Comparison | ||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest Earned or Paid | Average Yield or Cost | Average Balance | Interest Earned or Paid | Average Yield or Cost | Change Due to | ||||||||||||||||||
Rate | Volume | Total | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Interest-bearing due from banks | $ | 63,543 | $ | 2,596 | 5.46 % | $ | 36,351 | $ | 1,353 | 4.98 % | $ | 142 | $ | 1,101 | $ | 1,243 | |||||||||
FRB and FHLB stock | 2,383 | 109 | 6.11 % | 2,984 | 108 | 4.84 % | 25 | (24) | 1 | ||||||||||||||||
Debt securities available for sale | 139,848 | 3,594 | 3.43 % | 169,259 | 4,060 | 3.21 % | 265 | (731) | (466) | ||||||||||||||||
Loans held for sale-mortgage banking | - | - | 0.00 % | 35,724 | 1,514 | 5.67 % | (757) | (757) | (1,514) | ||||||||||||||||
Loans held for investment | 678,529 | 28,273 | 5.55 % | 634,460 | 24,754 | 5.22 % | 1,711 | 1,808 | 3,519 | ||||||||||||||||
Allowance for credit losses | (9,385) | - | 0.00 % | (8,890) | - | 0.00 % | - | - | - | ||||||||||||||||
Total | $ | 874,918 | $ | 34,572 | 5.28 % | $ | 869,888 | $ | 31,789 | 4.89 % | $ | 1,380 | $ | 1,403 | $ | 2,783 | |||||||||
Liabilities | |||||||||||||||||||||||||
Interest checking and money market | $ | 511,758 | $ | 8,817 | 2.30 % | $ | 507,211 | $ | 6,135 | 1.62 % | $ | 1,716 | $ | 966 | $ | 2,682 | |||||||||
Savings | 43,277 | 35 | 0.11 % | 48,306 | 35 | 0.10 % | 4 | (4) | - | ||||||||||||||||
Time deposits | 72,653 | 1,791 | 3.29 % | 56,620 | 526 | 1.24 % | 1,050 | 215 | 1,265 | ||||||||||||||||
Short-term borrowings | 2 | - | 6.00 % | 333 | 6 | 2.41 % | (3) | (3) | (6) | ||||||||||||||||
Subordinated debentures | 15,464 | 794 | 6.86 % | 15,000 | 743 | 6.62 % | 27 | 24 | 51 | ||||||||||||||||
Total | $ | 643,154 | $ | 11,437 | 2.38 % | $ | 627,470 | $ | 7,445 | 1.59 % | $ | 2,794 | $ | 1,198 | $ | 3,992 | |||||||||
Net Interest Income | $ | 23,135 | $ | 24,344 | |||||||||||||||||||||
Net Interest Spread | 2.90 % | 3.29 % | |||||||||||||||||||||||
Net Interest Margin | 3.53 % | 3.74 % |
BNCCORP, INC. | ||||||||||||
For the Quarter Ended September 30, | For the Nine Months Ended September 30, | |||||||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||
OTHER AVERAGE BALANCES | ||||||||||||
Total assets | 926,066 | 926,655 | 928,579 | 924,690 | ||||||||
Core deposits | 799,556 | 801,292 | 802,058 | 799,428 | ||||||||
Total equity | 104,871 | 103,762 | 103,243 | 103,776 | ||||||||
KEY RATIOS | ||||||||||||
Return on average common stockholders' equity (a) | 7.21 % | 5.17 % | 6.67 % | 4.14 % | ||||||||
Return on average assets (b) | 0.89 % | 0.65 % | 0.82 % | 0.51 % | ||||||||
Efficiency ratio (Consolidated) | 69.02 % | 75.50 % | 71.81 % | 83.90 % | ||||||||
Efficiency ratio (Bank) | 66.09 % | 72.28 % | 68.31 % | 80.61 % |
(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. | |||||||||
As of | |||||||||
(In thousands) | September 30, 2024 | December 31, 2023 | September 30, 2023 | ||||||
ASSET QUALITY | |||||||||
Loans 90 days or more delinquent and accruing interest | $ | - | $ | 832 | $ | - | |||
Non-accrual loans | 5,873 | 2,519 | 1,405 | ||||||
Total nonperforming loans | $ | 5,873 | $ | 3,351 | $ | 1,405 | |||
Repossessed assets, net | 48 | 33 | 11 | ||||||
Total nonperforming assets | $ | 5,921 | $ | 3,384 | $ | 1,416 | |||
Allowance for credit losses | $ | 9,531 | $ | 9,284 | $ | 9,146 | |||
Ratio of total nonperforming loans to total loans | 0.86 % | 0.50 % | 0.21 % | ||||||
Ratio of total nonperforming assets to total assets | 0.64 % | 0.35 % | 0.16 % | ||||||
Ratio of nonperforming loans to total assets | 0.64 % | 0.35 % | 0.15 % | ||||||
Ratio of allowance for credit losses to loans held for investment | 1.40 % | 1.39 % | 1.38 % | ||||||
Ratio of allowance for credit losses to total loans | 1.40 % | 1.39 % | 1.38 % | ||||||
Ratio of allowance for credit losses to nonperforming loans | 162 % | 277 % | 651 % |
For the Quarter Ended September 30, | For the Nine Months Ended September 30, | |||||||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||
Changes in Nonperforming Loans: | ||||||||||||
Balance, beginning of period | $ | 3,055 | $ | 1,434 | $ | 3,351 | $ | 1,355 | ||||
Additions to nonperforming | 3,279 | 25 | 4,862 | 357 | ||||||||
Charge-offs | (42) | (8) | (44) | (95) | ||||||||
Reclassified back to performing | (1) | - | (1,716) | (1) | ||||||||
Principal payments received | (381) | (46) | (511) | (165) | ||||||||
Transferred to repossessed assets | (37) | - | (69) | (46) | ||||||||
Balance, end of period | $ | 5,873 | $ | 1,405 | $ | 5,873 | $ | 1,405 |
BNCCORP, INC. | ||||||||||||
For the Quarter Ended September 30, | For the Nine Months Ended September 30, | |||||||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||
Changes in Allowance for Credit Losses: | ||||||||||||
Balance, beginning of period | $ | 9,603 | $ | 9,212 | $ | 9,459 | $ | 8,831 | ||||
Cumulative effect of CECL adoption | - | - | - | 125 | ||||||||
Provision | 110 | 230 | 355 | 635 | ||||||||
Loans charged off | (54) | (103) | (183) | (268) | ||||||||
Loan recoveries | 7 | 4 | 35 | 20 | ||||||||
Balance, end of period | $ | 9,666 | $ | 9,343 | $ | 9,666 | $ | 9,343 | ||||
Components: | ||||||||||||
Allowance for loan losses | $ | 9,531 | $ | 9,146 | $ | 9,531 | $ | 9,146 | ||||
Allowance for unfunded commitments | $ | 135 | $ | 197 | $ | 135 | $ | 197 | ||||
Ratio of net charge-offs to average total loans | (0.007) % | (0.015) % | (0.022) % | (0.037) % | ||||||||
Ratio of net charge-offs to average total loans, annualized | (0.027) % | (0.059) % | (0.029) % | (0.049) % |
As of | |||||||||
(In thousands) | September 30, 2024 | December 31, 2023 | September 30, 2023 | ||||||
CREDIT CONCENTRATIONS | |||||||||
Commercial and industrial | $ | 61,823 | $ | 62,019 | $ | 61,295 | |||
Construction | 1,074 | 5,247 | 18,582 | ||||||
Agricultural | 42,067 | 35,220 | 33,272 | ||||||
Land and land development | 8,033 | 7,992 | 6,505 | ||||||
Owner-occupied commercial real estate | 37,545 | 35,260 | 32,102 | ||||||
Commercial real estate | 127,513 | 135,858 | 123,673 | ||||||
Small business administration | 18,782 | 18,046 | 17,660 | ||||||
Consumer | 91,320 | 88,066 | 88,863 | ||||||
Subtotal gross loans held for investment | $ | 388,157 | $ | 387,708 | $ | 381,952 | |||
Consolidated | |||||||||
Commercial and industrial | $ | 98,990 | $ | 93,949 | $ | 93,702 | |||
Construction | 4,821 | 21,648 | 43,612 | ||||||
Agricultural | 44,834 | 37,720 | 35,795 | ||||||
Land and land development | 10,378 | 8,416 | 8,129 | ||||||
Owner-occupied commercial real estate | 79,991 | 84,386 | 80,902 | ||||||
Commercial real estate | 248,737 | 245,939 | 231,251 | ||||||
Small business administration | 76,977 | 63,836 | 59,905 | ||||||
Consumer | 117,343 | 111,872 | 110,572 | ||||||
Total gross loans held for investment | $ | 682,071 | $ | 667,766 | $ | 663,868 |
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SOURCE BNCCORP, INC.
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