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Reports Record Earnings For 2003 Second Quarter
BISMARCK, N.D., July 16, 2003 -- BNCCORP, Inc.
(Nasdaq: BNCC), which operates community banking, insurance and
brokerage/trust/financial services businesses in Arizona, Minnesota and North
Dakota, today reported record net income of $1.17 million, or $0.41 per share
on a diluted basis, for the quarter ended June 30, 2003. This represents a
more than ten-fold increase over the net income of $102,000, or $0.03 per
diluted share, reported for the second quarter of 2002. Results for the year-
ago quarter included income of $38,000, or $0.01 per diluted share, from the
operations of the Fargo, North Dakota branch office, which was sold on
September 30, 2002, and subsequently reclassified as a discontinued operation.
"All three of our core businesses performed extremely well during the 2003
second quarter," commented Gregory K. Cleveland, President and Chief Executive
Officer. "We benefited from rising net interest income in our banking
operations in spite of increased industry pressure on net interest margin in
this historic low interest rate environment and uncertain economic conditions
which are leading to limited loan demand. We also benefited from strong volume
in insurance commissions, and a substantial advisory fee for a transaction
managed by our financial services division. We believe these results,
representing diversified income streams, clearly demonstrate the value of our
strategy of investing in the development and growth of these diverse
businesses."
Second Quarter Performance
Net interest income was $3.80 million for the second quarter of 2003, an
increase of 15.6% compared with $3.29 million in the year-ago period. The
increase reflected a widening of the net interest margin.
Noninterest income was $5.41 million for the 2003 second quarter, rising
31.4% from $4.12 million for the year-ago period. As a percentage of gross
revenues, noninterest income was 58.74% for the recent quarter, up from 55.62%
a year ago. The largest contributors to noninterest income in the second
quarter of 2003 were insurance commissions of $3.42 million, largely produced
by Milne Scali & Company, an Arizona insurance agency acquired in April of
2002, and trust/financial services income of $631,000, which was largely
driven by a fee for managing the sale of two companies on behalf of a
customer.
Noninterest expense for the second quarter of 2003 was $7.13 million. This
represents a slight decrease from $7.19 million in the second quarter of 2002.
First Half Results
For the six months ended June 30, 2003, BNCCORP reported net income of
$2.19 million, or $0.78 per common share on a diluted basis. This represented
a more than six-fold increase over the net income of $292,000, or $0.11 per
diluted share, recorded in the first half of 2002. The year-ago results
included income of $98,000, or $0.04 per diluted share, from the discontinued
Fargo branch operations.
Net interest income for the 2003 six month period was $7.68 million, an
increase of 13.7% compared with $6.76 million in the year-ago period.
Noninterest income was $10.63 million for the first six months of 2003,
compared with $6.46 million reported for the similar 2002 period. The 64.4%
increase in noninterest income largely reflected the acquisition of Milne
Scali & Co., which was included in BNCCORP's results for the full first half
of 2003, versus approximately 10 weeks of the comparable 2002 period.
Noninterest income as a percent of gross revenues for the 2003 first half was
58.06%, up from 48.89% for the same 2002 period.
Noninterest expense for the first six months of 2003 was $14.03 million,
compared with $12.56 million in the year-ago first half. The increase in
noninterest expense largely reflected a full six months of operations of Milne
Scali in the recent period.
Loan and Deposit Balances
Total loans included in continuing operations were $322.4 million at June
30, 2003, rising from $305.5 million a year ago. Investment securities
available for sale were $209.9 million at the end of the recent quarter,
compared with $207.2 million a year earlier. Total assets included in
continuing operations increased to $592.7 million at June 30, 2003, versus
$577.2 million a year ago. Total deposits included in continuing operations
were $371.3 million, compared with $396.2 million at June 30, 2002, the
decrease largely attributable to a $23.7 million decrease in brokered and
national market certificates of deposit.
Total common stockholders' equity for BNCCORP at June 30, 2003 was
$38.3 million, equivalent to book value per common share of $14.16 (tangible
book value per common share of $5.70). Net unrealized gains in the investment
portfolio as of that date were more than $4.2 million, or approximately $1.57
per share, on a pretax basis.
Asset Quality
The provision for credit losses was $400,000 for the second quarter and
$1.18 million for the first six months of 2003, compared with $185,000 and
$402,000 for the respective 2002 periods. The allowance for credit losses as
a percentage of total loans at June 30, 2003 was 1.54%, compared with 1.49% at
December 31, 2002. The ratio of total nonperforming assets to total assets
improved to 1.07% at the end of the 2003 second quarter, compared with the
year-end 2002 level of 1.27%. The ratio of allowance for credit losses to
total nonperforming loans was 78% at June 30, 2003, strengthening from 66% at
December 31, 2002.
Outlook
"BNCCORP enjoyed an extremely successful first half of 2003. Our record
results benefited from diverse income streams including banking operations,
the contingency fees realized by our insurance operation, and the transaction
fee earned by our financial services division. We recognize that, due to the
nature of some of our businesses, the level of noninterest income may vary
from quarter to quarter going forward. Additionally, the continued pressure on
net interest margin caused by the historically low interest rates as well as
current economic conditions may also impact our performance in the coming
months," Mr. Cleveland noted.
BNCCORP, Inc., headquartered in Bismarck, N.D., is a registered bank
holding company dedicated to providing a broad range of financial products and
superior customer service to businesses and consumers in its local
communities. The company operates 21 locations in Arizona, Minnesota and North
Dakota through its subsidiary, BNC National Bank. The company also provides a
wide array of insurance, brokerage and trust and financial services through
BNC National Bank subsidiaries Milne Scali & Company, Inc., BNC Insurance,
Inc. and BNC Asset Management, Inc. and the bank's trust and financial
services division. The company offers a wide variety of traditional and
nontraditional financial products and services in order to meet the financial
needs of its current customer base, establish new relationships in the markets
it serves and expand its business opportunities.
Statements included in this news release which are not historical in
nature are intended to be, and are hereby identified as "forward-looking
statements" for purposes of the safe harbor provided by Section 27A of the
Securities Act of 1933, as amended and Section 21E of the Securities Exchange
Act of 1934, as amended. 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.
Reports Record Earnings For 2003 1st Quarter
BISMARCK, N.D., April 23, 2003 --
BNCCORP, Inc. (Nasdaq: BNCC) today reported net income of $1.02 million, or
$0.36 per share on a diluted basis, for the first quarter ended March 31,
2003. The 2003 first quarter earnings from continuing operations represent a
more than six-fold increase over the net income from continuing operations of
$130,000, or $0.05 per diluted share, reported for the same period of 2002.
Net income for the year-ago quarter included income of $60,000, or $0.03 per
share from the operations of the Fargo, North Dakota branch office, which was
sold on September 30, 2002, and subsequently reclassified as a discontinued
operation.
"The record first quarter performance clearly demonstrates the value of
BNCCORP's longstanding strategy to build a diversified base of banking,
insurance and brokerage/trust/financial services businesses," noted Gregory K.
Cleveland, President and Chief Executive Officer. "This strategy has enabled
us to offer a broader spectrum of services to our customers, while creating
multiple revenue sources that enable the company to better withstand
challenging economic cycles."
The 2003 first quarter results included a significant contribution from
insurance operations, primarily from Milne Scali & Company, Inc., a Phoenix,
Arizona-based insurance agency acquired in April 2002. BNCCORP noted that the
financial performance of its insurance business is typically strongest in the
first quarter due to contingency payments received from insurance carriers.
Rising Net Interest Income, Noninterest Income
Net interest income rose 11.8%, to $3.88 million for the first quarter of
2003, compared with $3.47 million for the first quarter of 2002. The increase
reflected a widening of the net interest margin from 2.80% for the quarter
ended March 31, 2002 to 2.90% for the same period in 2003.
Noninterest income was $5.22 million for the 2003 first quarter, rising
122.6% from $2.35 million in the year-ago period. Noninterest income
represented 57.36% of gross revenues for the recent quarter, rising from
40.33% for the comparable period of 2002. The sharp improvement was largely
due to insurance commissions produced by Milne Scali, which was not part of
BNCCORP for the year-ago period.
Noninterest expense for the first quarter of 2003 was $6.89 million. This
represents a 28.2% increase from $5.37 million in the 2002 first quarter, but
a decrease of 4.8% sequentially from the $7.24 million in the 2002 fourth
quarter. The year-over-year increase in noninterest expense primarily
reflected the addition of Milne Scali and BNCCORP's expanding Arizona
operations.
Loan and Deposit Growth
Total loans included in continuing operations rose to $329.5 million at
March 31, 2003, from $291.5 million a year ago. Investment securities
available for sale were $202.4 million at the end of the recent quarter,
compared with $197.6 million a year earlier. Total assets included in
continuing operations rose to $593.7 million at March 31, 2003, from
$527.8 million a year ago. Total deposits included in continuing operations
were $387.3 million, up from $378.0 million at March 31, 2002. Core deposit
growth of $22.4 million was offset by a decrease in brokered and national
market certificates of deposit of $13.1 million.
Mr. Cleveland stated, "We have been pleased with the loan and deposit
growth generated in both our Arizona and Minnesota markets over the last 12
months. The planned reduction in brokered and national market certificates of
deposit is yet another example of our active management of the balance sheet.
The strategy will increase the flexibility of the balance sheet in the future
so that we might capitalize on future opportunities should the economic cycle
turn upward."
Total common stockholders' equity for BNCCORP was $36.8 million at
March 31, 2003, equivalent to book value per common share of $13.63 (tangible
book value per common share of $5.93). Net unrealized gains in the investment
portfolio as of that date were nearly $3.8 million, or more than $1.39 per
share, on a pretax basis.
Asset Quality
The provision for credit losses was $775,000 for the 2003 first quarter,
compared with $217,000 for the year-ago period. The allowance for credit
losses as a percentage of total loans at March 31, 2003 was 1.58%, compared
with 1.54% a year ago. The ratio of nonperforming assets to total assets was
1.50% at March 31, 2003, compared with the year-ago level of 0.75%. The ratio
of allowance for credit losses to total nonperforming loans was 59% at March
31, 2003, compared with 115% one year earlier. The asset quality ratios as of
March 31, 2003 were impacted primarily by two commercial real estate credits
in the nonperforming category.
BNCCORP, Inc., headquartered in Bismarck, N.D., is a registered bank
holding company dedicated to providing a broad range of financial products and
superior customer service to businesses and consumers in its local
communities. The company operates 21 locations in Arizona, Minnesota and North
Dakota through its subsidiary, BNC National Bank. The company also provides a
wide array of insurance, brokerage and trust and financial services through
BNC National Bank subsidiaries Milne Scali & Company, Inc., BNC Insurance,
Inc. and BNC Asset Management, Inc. and the bank's trust and financial
services division. The company offers a wide variety of traditional and
nontraditional financial products and services in order to meet the financial
needs of its current customer base, establish new relationships in the markets
it serves and expand its business opportunities.
Statements included in this news release which are not historical in
nature are intended to be, and are hereby identified as "forward-looking
statements" for purposes of the safe harbor provided by Section 27A of the
Securities Act of 1933, as amended and Section 21E of the Securities Exchange
Act of 1934, as amended. 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.
Reports 2002 Net Income of $2.04 Million
BISMARCK, N.D., January 29, 2003 --
BNCCORP, Inc. (NASDAQ:BNCC) today reported sharply higher net income for the
full year and fourth quarter of 2002. Net income was $2.04 million, or $0.75
per common share on a diluted basis, for the year ended December 31, 2002.
Earnings for the 2002 fourth quarter were $794,000, or $0.28 per share on a
diluted basis. The Company, which operates banking, insurance and
trust/financial service businesses, cited the strong performance of its
insurance operations as a key contributor to its earnings growth.
"During 2002, we continued to strengthen our diversified business base,
which benefited particularly from the acquisition of Milne Scali & Company, a
Phoenix, Arizona-based insurance agency, in April 2002. We also sharpened our
focus on our attractive core markets: Arizona, Minneapolis and North Dakota.
And we made strategic management decisions, such as exiting the Fargo market
and reorganizing our asset management business, to build a more profitable
company for the future," commented Gregory K. Cleveland, President and Chief
Executive Officer of BNCCORP.
2002 Full Year Results
Net interest income was approximately $14.9 million in both 2002 and 2001.
Net interest income reflected mark-to-market losses on the value of derivative
contracts totaling ($779,000) in 2002 and ($184,000) in 2001. The remaining
fair value of the Company's interest rate cap contracts on December 31, 2002
was $136,000.
Noninterest income was nearly $16.3 million for 2002, increasing 87% from
the $8.7 million reported for the prior year. As a percentage of gross
revenues, noninterest income was 52.22% for 2002, versus 36.85% in 2001.
Insurance commissions, largely produced by Milne Scali, were the largest
component of noninterest income in 2002. Loan fees, gains on sales of
securities, and service charges also increased compared with 2001, while
brokerage and trust/financial services income declined.
Noninterest expense was $27.2 million for 2002, increasing nearly 39% from
$19.6 million a year ago. The rise in noninterest expense primarily reflected
the Company's expanded banking and insurance operations in Arizona.
4th Quarter Comparisons
Net interest income for the fourth quarter of 2002 was $4.1 million,
compared with $4.4 million in the year-ago period. Mark-to-market adjustments
on derivative contracts amounted to losses of ($58,000) in the 2002 fourth
quarter and gains of $322,000 in the same period of 2001.
Noninterest income was $4.7 million for the 2002 fourth quarter, more than
double the $2.2 million reported for the year-ago period, largely due to
insurance commissions produced by Milne Scali. Noninterest income as a
percent of gross revenues for the recent three-month period was 53.64%, rising
from 33.69% for the comparable 2001 period.
Noninterest expense for the fourth quarter of 2002 was $7.2 million,
compared with $5.5 million in the year-ago period. The higher noninterest
expense primarily reflected the addition of Milne Scali & Company in April
2002 and BNCCORP's expanding Arizona operations. The Company noted that
noninterest expense declined sequentially from $7.4 million in the quarter
ended September 30, 2002.
Outlook
Balance Sheet Highlights
Total common stockholders' equity for BNCCORP was approximately
$36.2 million at December 31, 2002, equivalent to book value per common share
of $13.41 (tangible book value per common share of $5.60). Net unrealized
gains in the investment portfolio as of that date were nearly $4.4 million, or
approximately $1.62 per share, on a pretax basis.
Asset Quality
BNCCORP, Inc., headquartered in Bismarck, N.D., is a bank holding company
that serves numerous communities in Arizona, Minnesota and North Dakota
through its wholly owned bank subsidiary, BNC National Bank. The Company also
provides a wide array of insurance, brokerage and trust and financial services
through BNC National Bank subsidiaries BNC Insurance, Inc., Milne Scali &
Company, Inc. and BNC Asset Management, Inc. and the trust and financial
services division of BNC National Bank. BNCCORP, Inc. provides a wide variety
of traditional and nontraditional banking products and services in order to
meet the financial needs of its current customer base and to establish new
relationships in the markets it serves.
Statements included in this news release which are not historical in
nature are intended to be, and are hereby identified as "forward looking
statements" for purposes of the safe harbor provided by Section 21E of the
Securities Exchange Act of 1934, as amended. The Company cautions readers that
forward looking statements, including without limitation, those relating to
the Company's 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 economic conditions; competition for the
Company's 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 the Company's acquisition strategy; and other risks which are
difficult to predict and many of which are beyond the control of the Company.
Reports Record Earnings for 2002 Third Quarter BISMARCK, N.D., October 23, 2002 --BNCCORP, Inc. (NASDAQ:BNCC) today reported its strongest quarterly net
income since becoming a publicly traded company in 1995. The record earnings
performance largely reflected net income generated by the Company's insurance
business, growth in several other noninterest income areas, and an increase in
net interest income.
For the third quarter ended September 30, 2002, the Company recorded net
income of $953,000, or $0.34 per share on a diluted basis. This compares with
a net loss of $718,000, or $0.30 per share (including an extraordinary charge
of $0.06 for early extinguishment of debt), in the year-ago period. Results
for the third quarter of 2002 included net income from insurance operations of
$457,000, reflecting the first full quarter of operations of Milne Scali &
Company, a Phoenix, Arizona-based insurance agency acquired in April 2002.
Results for all periods have been reclassified to reflect the operations of
the Fargo, North Dakota branch office as discontinued, due to the sale of the
office on September 30, 2002. The results reported above included a loss from
discontinued Fargo operations of $0.03 per share in the 2002 period, and $0.02
per share in the 2001 period.
Gregory K. Cleveland, President and Chief Executive Officer of BNCCORP,
commented, "The 2002 third quarter represents our most profitable quarter as a
public company. It also demonstrates the earnings potential of our
diversified base of banking, insurance and asset management operations.
Overall, noninterest income, including insurance, generated 58.17% of gross
revenues for the recent quarter, exceeding our internal goal of 50%. Our
acquisition of Milne Scali & Company was accretive to earnings in its first
full quarter of operations as part of BNCCORP, as we had anticipated. We also
streamlined our asset management operations by closing the Fargo office and
improving our cost-structure in Minneapolis so that we can look forward to
improved contribution from that area in the future."
Rising Net Interest Income, Noninterest Income
Noninterest income was more than $5.1 million for the 2002 third quarter,
an increase of 180.4% from the $1.8 million reported in the same quarter of
last year. Insurance commissions, largely produced by Milne Scali & Company,
were the largest component of noninterest income. Due to seasonal business
factors, Milne Scali's profitability historically has been strongest in the
first and third calendar quarters. Gains on sales of securities, loan fees
and service charges also increased compared with the year-ago quarter, while
brokerage income declined.
Noninterest expense was $7.4 million for the third quarter of 2002,
increasing 44.7% from $5.1 million for the year-ago quarter. The higher
noninterest expense primarily reflected the Company's expanded banking and
insurance operations in Arizona, as well as severance and other costs relating
to the sale of the Fargo, North Dakota branch office and winding down the
Fargo office of the Company's BNC Asset Management, Inc. subsidiary.
Sale of Fargo Branch
"Going forward, BNCCORP will maintain a disciplined strategic focus on
core businesses -- banking, insurance and asset management -- that we believe
will create value for shareholders and provide the range of services our
customers desire," Mr. Cleveland concluded.
Year-to-Date Results
Net interest income for the nine months ended September 30, 2002 was $10.8
million, an increase of 2.7% over the year-ago period. Factoring out the
impact of mark-to-market adjustments on derivative contracts for both periods
of ($721,000) and ($495,000), respectively, net interest income increased 4.7%
during 2002 year-to-date, compared to the same period in 2001.
Noninterest income was $11.6 million for the nine months ended September
30, 2002, a 78.5% increase from the $6.5 million reported one year earlier.
Insurance commissions produced by Milne Scali & Company represented the
largest component of the increase. Gains on sales of securities, loan fees
and service charges also increased compared to the year-ago period, while
brokerage income declined. Noninterest income as a percent of gross revenues
for the nine-month period was 53.58%, exceeding the Company's internal goal of
50%.
Noninterest expense for the nine-month period ended September 30, 2002 was
$19.9 million, up 41.4% from the year-ago period. The higher noninterest
expense primarily reflected the addition of Milne Scali & Company in April
2002 and the Company's expanding Arizona operations, along with the severance
and other items noted earlier.
Balance Sheet Highlights
Total common stockholders' equity for BNCCORP was approximately
$35.3 million at September 30, 2002, equivalent to book value per common share
of $13.07 (tangible book value per common share of $4.51). Net unrealized
gains in the investment portfolio as of that date were nearly $4.1 million, or
approximately $1.51 per share, on a pretax basis.
Asset Quality Strengthened, Charge-offs Decline
BNCCORP, Inc., headquartered in Bismarck, N.D., is a bank holding company
that serves numerous communities in North Dakota, Minnesota and Arizona
through its wholly owned bank subsidiary, BNC National Bank. The Company also
provides a wide array of insurance and brokerage services through BNC National
Bank subsidiaries BNC Insurance, Inc., Milne Scali & Company and BNC Asset
Management, Inc. BNCCORP, Inc. provides a wide variety of traditional and
nontraditional banking products and services in order to meet the financial
needs of its current customer base and to establish new relationships in the
markets it serves.
Statements included in this news release which are not historical in
nature are intended to be, and are hereby identified as "forward looking
statements" for purposes of the safe harbor provided by Section 21E of the
Securities Exchange Act of 1934, as amended. The Company cautions readers that
forward looking statements, including without limitation, those relating to
the Company's 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 economic conditions; competition for the
Company's 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 the Company's acquisition strategy; and other risks which are
difficult to predict and many of which are beyond the control of the Company.
Reports 2nd Quarter 2002 Earnings BISMARCK, N.D., July 29, 2002 --
BNCCORP, Inc. (NASDAQ:BNCC) today reported net income of $102,000, or
$0.03 per common share on a diluted basis, for the second quarter ended
June 30, 2002. For the same quarter of 2001, net income was $691,000, or
$0.28 per share, on a diluted basis. There were no extraordinary gains or
losses in the second quarter of 2002, whereas results for the year-ago period
included a $4,000 extraordinary gain on early extinguishment of debt.
Results for the recent quarter primarily reflected a decrease in net
interest income, along with higher noninterest expenses associated with the
Company's expanding market presence in Arizona. These factors were partly
offset by increased noninterest income, especially from insurance activities.
The Arizona operations include three banking and loan generation offices, as
well as the Milne Scali & Company insurance agency headquartered in Phoenix
and acquired on April 16, 2002.
Net interest income was approximately $3.6 million for the latest three
months, compared with $4.1 million for the second quarter of 2001, with much
of the difference attributable to a write-down of interest rate hedging
instruments in the recent period. Noninterest income rose to nearly
$4.2 million for the 2002 second quarter, compared with $2.5 million in the
same period of 2001, largely due to a sharp rise in insurance commissions
generated as a result of the Milne Scali acquisition. Noninterest expense was
$7.5 million for the second quarter of 2002, up from $5.0 million for the
year-ago quarter, for the reasons discussed above.
"Our investments in building an Arizona franchise have begun to generate
results, although we are far from satisfied with the Company's quarterly
performance," noted BNCCORP President and CEO Gregory K. Cleveland. "Our
Arizona banking operations have been excellent sources of loan and deposit
growth, and the Milne Scali insurance agency is profitable. Over time, we
look forward to more significant contributions from this attractive market."
For the first half of 2002, BNCCORP reported net income of approximately
$292,000, or $0.11 per common share on a diluted basis. In the six months of
2001, net income was $1.37 million, or $0.56 per share, including an
extraordinary gain on the early extinguishment of debt of $8,000, and a charge
for the cumulative effect of a change in accounting principle of $113,000
(both net of income taxes).
Total loans were $328.3 million at June 30, 2002, an increase of nearly
$8.0 million over the year-ago figure. Investment securities totaled
$207.2 million at the end of the 2002 second quarter, rising $22.3 million.
Total assets were $606.1 million at the end of the recent quarter, an increase
of $60.3 million from a year ago. Total deposits rose to $426.6 million at
June 30, 2002, up $51.6 million.
Total common stockholders' equity for BNCCORP was approximately
$34.1 million at June 30, 2002, equivalent to book value per common share of
$12.65 (tangible book value per common share of $4.00). Net unrealized gains
in the investment portfolio as of that date were nearly $3.8 million, or
approximately $1.40 per share, on a pretax basis, up from $2.7 million, or
approximately $1.11 per share, on a pretax basis, at December 31, 2001.
The provision for credit losses decreased to $185,000 for the 2002 second
quarter, less than one-third the year-ago level of $600,000. The allowance
for credit losses as a percentage of total loans at June 30, 2002 was 1.41%,
essentially even with 1.42% at June 30, 2001, while increasing over the 1.35%
ratio as of December 31, 2001. The ratio of nonperforming assets to total
assets was 0.68% at June 30, 2002, rising from 0.32% a year earlier, but below
the December 31, 2001 level of 0.76%. The ratio of allowance for credit
losses to total nonperforming loans was 117% at June 30, 2002, compared with
263% a year earlier, and 99% at December 31, 2001.
BNCCORP, Inc., headquartered in Bismarck, North Dakota, is a bank holding
company that serves numerous communities in North Dakota, Minnesota and
Arizona through its wholly owned bank subsidiary, BNC National Bank. The
Company also provides a wide array of insurance and brokerage services through
BNC National Bank subsidiaries BNC Insurance, Inc., Milne Scali & Company and
BNC Asset Management, Inc. BNCCORP, Inc. provides a wide variety of
traditional and nontraditional banking products and services in order to meet
the financial needs of its current customer base and to establish new
relationships in the markets it serves.
Statements included in this news release which are not historical in
nature are intended to be, and are hereby identified as "forward looking
statements" for purposes of the safe harbor provided by Section 21E of the
Securities Exchange Act of 1934, as amended. The Company cautions readers
that forward looking statements, including without limitation, those relating
to the Company's 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 economic conditions;
competition for the Company's 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 the Company's acquisition strategy; and
other risks which are difficult to predict and many of which are beyond the
control of the Company.
Reports 1st Quarter 2002 Earnings BISMARCK, N.D., April 24, 2002 --
BNCCORP, Inc. (NASDAQ:BNCC) today reported net income of $190,000, or
$0.08 per share on a diluted basis, for the first quarter ended March 31,
2002. This compares with net income of $680,000, or $0.28 per share diluted,
for the same three months of 2001. All of the Company's net income in the
recent quarter was derived from continuing operations, while results for the
year-ago period included a $4,000 extraordinary gain on early extinguishment
of debt, as well as a $113,000 charge for the cumulative effect of a change in
accounting principle (both net of tax).
Noteworthy activities by BNCCORP during the 2002 first quarter included
the acquisition of Milne Scali & Company, one of the largest independent
insurance agencies in the Phoenix, Ariz. market, which was completed on
April 16, 2002. On April 8, 2002, BNCCORP combined its North Dakota,
Minnesota and Arizona banking units under a single national bank charter, as
BNC National Bank, in a move to streamline the Company's organizational and
capital structures.
Net interest income held steady, at approximately $3.8 million for both
the recent and year-ago quarters. Noninterest income was $2.4 million for the
2002 first quarter, up slightly from $2.3 million in the same period of 2001,
as increases in loan fees, service charges and brokerage income more than
offset reductions in securities sales gains and trust/financial services
income. Noninterest expense was $5.7 million for the first quarter of 2002,
an increase of 23% from the year-ago quarter, largely due to the Company's
expansion into the Arizona market and the expense impact of issuing trust
preferred securities to support growth and provide additional regulatory
capital.
"While the national economy declined by most measures during the last
year, BNCCORP's interest income and noninterest income remained stable," said
President and CEO Gregory K. Cleveland. "In the near term, our profitability
has reflected the additional expenses of operating in Arizona. However, we
believe strongly that our entry into this attractive banking market, as well
as our more recent decision to expand our diverse portfolio of financial
products by acquiring the successful Milne Scali insurance agency, will be
important to the future of our Company." He added that the Milne Scali
purchase was completed on April 16, 2002 and, as previously reported, is
expected to be accretive to BNCCORP's 2002 earnings.
Total loans were $317.4 million at March 31, 2002, rising approximately
15% compared with a year earlier. Investment securities amounted to
$203.9 million at the end of the latest quarter, a decrease of 20%, as the
Company continued to increase the proportion of its earning assets dedicated
to loans. Total assets were $559.9 million at the end of the 2002 first
quarter, versus $571.9 million a year ago. Total deposits rose nearly 8% in
the last 12 months, to $401.4 million at March 31, 2002.
The provision for credit losses decreased to $217,000 for the 2002 first
quarter, from $350,000 for the year-ago period. The allowance for credit
losses as a percentage of total loans was 1.41% at the end of the first
quarter of 2002, essentially unchanged from 1.43% a year ago. The ratio of
nonperforming assets to total assets was 0.71% at March 31, 2002, compared
with 0.18% a year earlier. The ratio of allowance for credit losses to total
nonperforming loans was 115% at the end of the recent quarter, compared with
391% a year earlier.
Total stockholders' equity for BNCCORP was approximately $30.4 million at
the end of the latest quarter, equivalent to book value per common share of
$12.66. Net unrealized securities gains included in stockholders' equity as
of that date (on an after tax basis) were $1.1 million, or $0.48 per share.
BNCCORP, Inc., headquartered in Bismarck, N.D., is a bank holding company
that serves numerous communities in North Dakota, Minnesota and Arizona
through its wholly owned subsidiaries, BNC National Bank, BNC Insurance, Inc.,
BNC Asset Management, Inc. and Milne & Company Insurance, Inc. BNCCORP, Inc.
provides a wide variety of traditional and nontraditional banking products and
services in order to meet the financial needs of its current customer base and
to establish new relationships in the markets it serves.
Statements included in this news release which are not historical in
nature are intended to be, and are hereby identified as "forward looking
statements" for purposes of the safe harbor provided by Section 21E of the
Securities Exchange Act of 1934, as amended. The Company cautions readers
that forward looking statements, including without limitation, those relating
to the Company's 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 economic conditions;
competition for the Company's 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 the Company's acquisition strategy; and
other risks which are difficult to predict and many of which are beyond the
control of the Company.
To Acquire Major Independent Insurance Agency In Arizona Market BISMARCK, N.D. and PHOENIX, March 28, 2002 --
BNCCORP, Inc. (NASDAQ:BNCC) today announced a signed definitive agreement for
its insurance subsidiary to acquire Milne & Company Insurance, Inc., d/b/a
Milne Scali & Company, one of the largest independent insurance agencies in
Phoenix. For BNCCORP, a growing $585 million-asset regional bank holding
company that operates in the North Dakota, Minnesota and Arizona markets, the
purchase will expand the Company's diverse portfolio of financial products,
which include insurance, as well as investment, trust and employee benefit
services.
Milne Scali is one of the leading independent insurance agencies in the
greater Phoenix market, having generated approximately $10 million in gross
commission revenue in 2001. Established in 1990, Milne Scali has
approximately 85 employees and three offices in Phoenix, Tempe and the Verde
Valley area. It is a full service agency with a strong concentration in
business insurance, risk management and employee benefit programs, as well as
personal life, health, disability and automobile coverage.
The purchase price paid at closing will consist of $15.5 million in cash,
plus newly issued shares of BNCCORP common stock valued at $2.5 million.
Additional consideration of up to $8.5 million will be payable over a maximum
of five years, subject to Milne Scali's attainment of certain financial
performance targets. BNCCORP expects the acquisition to be accretive to its
earnings during 2002. Completion of the purchase is expected by the end of
April 2002. A fairness opinion on the transaction was provided to BNCCORP by
the firm of Keefe, Bruyette & Woods, Inc.
Milne Scali & Company will continue to operate under its current name,
under the management of founders Richard W. Milne, Jr. and Terrence M. Scali
and their existing staff. Furthermore, Mr. Milne and Mr. Scali will assume
responsibility for overseeing all of BNCCORP's insurance operations.
"Milne Scali is a rapidly growing, profitable and well managed independent
insurance agency that we believe is an extremely good strategic fit with our
existing diversified financial services businesses," said BNCCORP President
and CEO Gregory K. Cleveland. "In the past few years we have developed a
portfolio of financial products that complement our traditional banking
services, allow us to serve more of our customers' needs, and broaden our
revenue base. The expertise of Richard Milne, Terrence Scali and their team
of successful producers will be a welcome addition to our Company."
"We are tremendously excited about having BNCCORP as our partner in
growth," stated Richard Milne. "Having been active in insurance agency
operations since the mid-1990s, BNCCORP clearly understands and is firmly
committed to our segment of the financial services business."
"BNCCORP has placed a major emphasis on serving the financial needs of
small to mid-size businesses. This will allow us to leverage Milne Scali's
recognized expertise in commercial insurance, thereby providing expanded
resources to our combined customer base," commented Terrence Scali.
The Milne Scali & Company acquisition is BNCCORP's third strategic
initiative in the Arizona market in the past year. In July 2001, the Company
established BNC National Bank of Arizona, a full service commercial bank with
offices in downtown Tempe and a branch in Phoenix. Earlier that year, BNC
also opened a loan and deposit production office in the Tempe market.
BNCCORP, Inc., headquartered in Bismarck, N.D., is a bank holding company
that serves numerous communities in North Dakota, Minnesota and Arizona
through its wholly owned subsidiaries, BNC National Bank and BNC National Bank
of Arizona, which began operating under its new national bank charter on July
9, 2001. The Company also provides a wide array of insurance and brokerage
services through subsidiaries BNC Insurance, Inc. and BNC Asset Management,
Inc. BNCCORP, Inc. provides a wide variety of traditional and nontraditional
banking products and services in order to meet the financial needs of its
current customer base and to establish new relationships in the markets it
serves.
Statements included in this news release which are not historical in
nature are intended to be, and are hereby identified as "forward-looking
statements" for purposes of the safe harbor provided by Section 21E of the
Securities Exchange Act of 1934, as amended. The Company cautions readers that
forward looking statements, including without limitation, those relating to
the Company's 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 economic conditions; competition for the
Company's 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 the Company's acquisition strategy; and other risks which are
difficult to predict and many of which are beyond the control of the Company.
Reports 2001 Earnings From Continuing Operations of $1.5 Million BISMARCK, N.D., February 6, 2002 -- BNCCORP, Inc. (Nasdaq: BNCC - news) today reported solid financial progress for the
fourth quarter ended December 31, 2001. Net income for the 2001 fourth quarter, all of
which was derived from continuing operations, was $592,000, or $0.24 per share on a
diluted basis. This represents a 66% increase versus the comparable figure a year ago, when
income from continuing operations was $356,000, or $0.15 per share. The 2000 fourth
quarter results also included a gain on disposal of an asset-based lending subsidiary of
$149,000, or $0.06 per share; as well as a gain on early extinguishment of debt of $23,000,
or $0.01 per share (both net of tax). Including these one-time or extraordinary gains, net
income for the year-ago fourth quarter was $528,000, or $0.22 per share. BNCCORP's
2001 performance also was notable for loan and deposit growth, continued strong capital
ratios, an increase in book value to $12.79 per share, and net unrealized securities gains at
year-end of nearly $2.7 million, or $1.10 per share.
For the full year 2001, BNCCORP reported income from continuing operations of
approximately $1.5 million, or $0.62 per share on a diluted basis. In the year 2000, income
from continuing operations was nearly $1.9 million, or $0.78 per share. Net income for 2001
was $1.2 million, or $0.51 per share, after an extraordinary loss on the early extinguishment
of debt of $134,000 ($0.06 per share), and a charge for the cumulative effect of a change in
accounting principle of $113,000 ($0.05 per share). Results for 2000 included a gain on
disposal of an asset-based lending subsidiary of $159,000, or $0.07 per share; and a gain on
early extinguishment of debt of $257,000, or $0.11 per share (both net of tax). After such
gains, 2000 net income was nearly $2.3 million, or $0.96 per share.
Growth in Net Interest Income, Noninterest Income
The 2001 fourth quarter reflected a 33% increase in net interest income, to nearly $4.7
million from $3.5 million, largely due to BNCCORP's strategic shift in asset mix from
investment securities to loans, along with steady deposit growth. Noninterest income rose
more than 5%, to $2.3 million for the 2001 fourth quarter versus $2.2 million in the same 2000 period, as growth in loan fees
and service charges offset reduced brokerage income and securities sales gains. Noninterest expense was $5.8 million for the
fourth quarter of 2001, up 19% from $4.9 million in the year-ago quarter, largely due to the Company's expansion into the
Tempe, Ariz. market and the expense impact of issuing trust preferred securities.
Full year 2001 saw net interest income increase nearly 15%, to $15.7 million from $13.6 million, again mostly as a result of
changes in asset mix and rising deposits. Noninterest income for 2001 was nearly $9.0 million, up 15% from $7.8 million in the
year 2000, reflecting a sizeable gain on sales of securities, while other noninterest income items held relatively stable
year-to-year. Noninterest expense was $20.8 million for 2001, a 20% increase from $17.4 million in 2000, again reflecting the
Arizona initiative and expenses related to trust preferred securities.
Well-Defined Strategies
``BNCCORP's strong growth in income from continuing operations in the 2001 fourth quarter is particularly gratifying in light of
the challenging economic environment,'' said President and CEO Gregory K. Cleveland. ``We achieved this performance by
continuing to follow our well-defined operating strategies: building diverse sources of revenue, managing the balance sheet to
optimize profitability, maintaining close scrutiny of credit quality, and investing in new engines of growth.''
Tracy Scott, Chairman of the Board, added, ``When we speak of investing in growth, I should note that in the past four years,
BNCCORP has expanded into Fargo, N.D. and Tempe, Ariz. We chose to pursue expansion by establishing wholly new
operations, rather than via acquisitions as others often do. Thus we record the investment needed to operate in new markets as
an expense, whereas companies that depend on acquisitions for growth are able to recognize much of their 'entry cost' as
goodwill. However, when we consider the strong contributions that our newer markets have made in terms of loan volume and
deposit growth, there is no doubt that the expense of investing in new markets has been justified.''
Loan and Deposit Volume
Total loans rose 19% over the prior year, to reach $320.8 million at December 31, 2001. At the same time, reflecting the
Company's continuing strategy of allocating a greater proportion of its asset mix to loans, investment securities were reduced by
17%, to $219.2 million. Total assets were $585.1 million at year-end 2001, up 3% from a year ago. Total deposits increased
13% over the year-ago level, to $408.0 million at the end of the latest quarter.
In the face of the prevailing softness of the nation's economy, BNCCORP continued to focus on maintaining sound credit
quality. The provision for credit losses was increased to $1.7 million in 2001, versus $1.2 million for the prior year. The
allowance for credit losses as a percentage of total loans was 1.35% at the end of 2001, increasing slightly from 1.33% a year
ago. The ratio of nonperforming assets to total assets was 0.76% at December 31, 2001, compared with 0.12% at the end of
2000. The ratio of allowance for credit losses to total nonperforming loans was 98.83% at the end of 2001, compared with
618.62% a year earlier.
Total stockholders' equity for BNCCORP was approximately $30.7 million at December 31, 2001, equivalent to book value
per common share of $12.79. The Tier 1 risk-based capital ratio at the end of 2001 was 8.89%.
BNCCORP, Inc., headquartered in Bismarck, N.D., is a bank holding company that serves numerous communities in North
Dakota, Minnesota and Arizona through its wholly owned subsidiaries, BNC National Bank and BNC National Bank of
Arizona, which began operating under its new national bank charter on July 9, 2001. The Company also provides a wide array
of insurance and brokerage services through subsidiaries BNC Insurance, Inc. and BNC Asset Management, Inc.
BNCCORP, Inc. provides a wide variety of traditional and nontraditional banking products and services in order to meet the
financial needs of its current customer base and to establish new relationships in the markets it serves.
Statements included in this news release which are not historical in nature are intended to be, and are hereby identified as
``forward looking statements'' for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of
1934, as amended. The Company cautions readers that forward looking statements, including without limitation, those relating
to the Company's 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 economic conditions; competition for the Company's 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 the Company's acquisition strategy; and other risks which are
difficult to predict and many of which are beyond the control of the Company.
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