BNCCORP, INC. REPORTS FIRST QUARTER NET INCOME OF $1.7 MILLION, OR $0.49 PER DILUTED SHARE
Highlights
-
Net income during the first quarter of 2024 increased
$267 thousand , or 18.1%, to$1.7 million , or$0.49 per diluted share, from$1.5 million , or$0.41 per diluted share, in the 2023 period. - First quarter 2024 return on average assets of 0.74% compared to 0.65% in the 2023 period.
-
During the quarter, the Company declared a one-time special dividend of
$2.25 and repurchased 50,000 shares of its common stock. -
For the quarter, the Community Banking segment reported net income of
$2.1 million , or$0.58 per diluted share, compared to net income of$3.0 million , or$0.84 per diluted share, in the same period of 2023. - Yields on loans held for investment was 5.51% for the first quarter of 2024 compared to 5.05% in the first quarter of 2023.
-
The Company increased loans held for investment balances by
$9.1 million , or 1.4%, to$677.9 million as ofMarch 31, 2024 from$668.8 million atDecember 31, 2023 . -
The ratio of loans held for investment-to-deposits increased to 84.1% at
March 31, 2024 from 79.9% atDecember 31, 2023 . -
Allowance for credit losses as of
March 31, 2024 , increased to 1.40% of loans held for investment compared to 1.39% as ofDecember 31, 2023 .
Management Commentary
"The first quarter was characterized by a solid performance as compared with a year ago, with net income increasing by 18.1% to
"We were also pleased to have declared a one-time special dividend of
"Looking ahead, our strategy remains to deliver sustainable growth, tempered by strong risk management, and to enhance shareholder value. We believe that our disciplined approach to lending and our focus on high-quality customer service continues to serve us well as we navigate the dynamic economic landscape."
2024 Versus 2023 First Quarter Comparison |
|||||||||||||||
SEGMENT DATA |
For the Quarter Ended |
||||||||||||||
(in thousands) |
Community Banking |
|
Mortgage Banking (a) |
|
Holding Company |
|
Intercompany Eliminations |
|
Consolidated |
||||||
Net interest income (expense) |
$ |
8,081 |
|
$ |
- |
|
$ |
(222) |
|
$ |
- |
|
$ |
7,859 |
|
Provision for credit losses |
|
215 |
|
|
- |
|
|
- |
|
|
- |
|
|
215 |
|
Non-interest income |
|
1,618 |
|
|
- |
|
|
541 |
|
|
(621) |
|
|
1,538 |
|
Non-interest expense |
|
6,745 |
|
|
- |
|
|
783 |
|
|
(621) |
|
|
6,907 |
|
Income (loss) before taxes |
|
2,739 |
|
|
- |
|
|
(464) |
|
|
- |
|
|
2,275 |
|
Income tax expense (benefit) |
|
644 |
|
|
- |
|
|
(109) |
|
|
- |
|
|
535 |
|
Net income (loss) |
$ |
2,095 |
|
$ |
- |
|
$ |
(355) |
|
$ |
- |
|
$ |
1,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
||||||||||||||
|
Community Banking |
|
Mortgage Banking |
|
Holding Company |
|
Intercompany Eliminations |
|
Consolidated |
||||||
Net interest income (expense) |
$ |
8,497 |
|
$ |
155 |
|
$ |
(211) |
|
$ |
- |
|
$ |
8,441 |
|
Provision for credit losses |
|
240 |
|
|
- |
|
|
- |
|
|
- |
|
|
240 |
|
Non-interest income |
|
2,227 |
|
|
1,847 |
|
|
550 |
|
|
(993) |
|
|
3,631 |
|
Non-interest expense |
|
6,511 |
|
|
3,614 |
|
|
774 |
|
|
(993) |
|
|
9,906 |
|
Income (loss) before taxes |
|
3,973 |
|
|
(1,612) |
|
|
(435) |
|
|
- |
|
|
1,926 |
|
Income tax expense (benefit) |
|
955 |
|
|
(400) |
|
|
(102) |
|
|
- |
|
|
453 |
|
Net income (loss) |
$ |
3,018 |
|
$ |
(1,212) |
|
$ |
(333) |
|
$ |
- |
|
$ |
1,473 |
|
(a)The Company divested the mortgage banking segment in 2023. |
The Community Banking Segment reported net income of
Consolidated net interest income for the first quarter of 2024 was
On a consolidated basis, first-quarter interest income increased
Consolidated interest expense in the first quarter of 2024 was
The average balance of deposits increased by
As of
Non-interest income for the Community Banking Segment during the first quarter of 2024 was
Non-interest expense for the Community Banking Segment during the first quarter of 2024 increased just
In the first quarter of 2024, consolidated income tax expense was
Tangible book value per common share on
Assets and Liabilities
At the consolidated level, total assets were
Total loans held for investment were
Total deposits decreased
The following table provides additional detail to the Company's total deposit relationships:
|
|
As of |
|||||||
(In thousands) |
|
2024 |
|
2023 |
|
2023 |
|||
Deposits: |
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
|
$ |
170,976 |
|
$ |
184,442 |
|
$ |
195,125 |
Interest-bearing – |
|
|
|
|
|
|
|
|
|
Savings, interest checking and money market |
|
|
565,151 |
|
|
582,855 |
|
|
525,644 |
Time deposits |
|
|
69,984 |
|
|
69,906 |
|
|
51,609 |
Total on balance sheet deposits |
|
|
806,111 |
|
|
837,203 |
|
|
772,378 |
|
|
|
|
|
|
|
|
|
|
Off-balance sheet deposits (1) |
|
|
38,875 |
|
|
34,792 |
|
|
124,971 |
|
|
|
|
|
|
|
|
|
|
Total available deposits |
|
$ |
844,986 |
|
$ |
871,995 |
|
$ |
897,349 |
(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 |
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 greater than 70% of its customers' deposit balances. This fact, combined with our strong balance sheet and sustained management focus on the Company's relationship-focused culture, has contributed to the Company's ability to maintain a significant deposit base.
Off-balance sheet accounts are primarily utilized to accommodate larger business customers with significant deposits who require daily access to funds and desire
Trust assets under administration increased 5.2%, or
Asset Quality
The allowance for credit losses was
Past due loans for a period of 31-89 days decreased to
As of
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 industry as of
Loans Held for Investment by Industry Sector |
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
||||||||
Non-owner Occupied Commercial Real estate – not |
$ |
191,650 |
|
28 |
% |
|
$ |
198,428 |
|
30 |
% |
Consumer, not otherwise categorized |
|
99,268 |
|
15 |
|
|
|
99,702 |
|
15 |
|
Hotels |
|
83,042 |
|
12 |
|
|
|
83,985 |
|
13 |
|
Retail trade |
|
38,696 |
|
6 |
|
|
|
35,827 |
|
5 |
|
Healthcare and social assistance |
|
35,238 |
|
5 |
|
|
|
32,011 |
|
5 |
|
Agriculture, forestry, fishing and hunting |
|
32,732 |
|
5 |
|
|
|
33,503 |
|
5 |
|
Transportation and warehousing |
|
28,460 |
|
4 |
|
|
|
27,905 |
|
4 |
|
Art, entertainment and recreation |
|
28,130 |
|
4 |
|
|
|
27,507 |
|
4 |
|
Non-hotel accommodation and food service |
|
25,593 |
|
4 |
|
|
|
24,637 |
|
4 |
|
Mining, oil and gas extraction |
|
21,837 |
|
3 |
|
|
|
22,149 |
|
3 |
|
Construction contractors |
|
16,591 |
|
3 |
|
|
|
16,082 |
|
3 |
|
Other service |
|
13,007 |
|
2 |
|
|
|
11,940 |
|
2 |
|
Professional, scientific, and technical services |
|
11,248 |
|
2 |
|
|
|
9,570 |
|
1 |
|
Manufacturing |
|
9,729 |
|
1 |
|
|
|
7,801 |
|
1 |
|
Real estate and rental and leasing support services |
|
9,126 |
|
1 |
|
|
|
9,804 |
|
1 |
|
Educational services |
|
8,415 |
|
1 |
|
|
|
4,246 |
|
1 |
|
Finance and insurance |
|
8,165 |
|
1 |
|
|
|
6,781 |
|
1 |
|
All other |
|
15,867 |
|
3 |
|
|
|
15,888 |
|
2 |
|
Gross loans held for investment |
$ |
676,794 |
|
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
Capital
Banks and bank holding companies operate under separate regulatory capital requirements. As of
A summary of BNC's capital ratios at
|
|
2024 |
|
2023 |
|
|
|
|
|
Tier 1 leverage |
|
13.41 % |
|
14.52 % |
Common equity tier 1 risk based capital |
|
13.59 % |
|
14.58 % |
Tier 1 risk based capital |
|
15.48 % |
|
16.49 % |
Total risk based capital |
|
16.64 % |
|
17.64 % |
Tangible common equity |
|
10.81 % |
|
11.19 % |
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage |
|
12.49 % |
|
12.54 % |
Common equity tier 1 risk based capital |
|
14.42 % |
|
14.25 % |
Tier 1 risk based capital |
|
14.42 % |
|
14.25 % |
Total risk based capital |
|
15.58 % |
|
15.40 % |
Tangible common equity |
|
11.58 % |
|
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
About
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 current 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 mortgage banking revenues and derivative contracts and associated accounting consequences; risks associated with our acquisition and growth strategies; and other risks which are difficult to predict and many of which are beyond our control. In addition, all statements in this news release, including forward-looking statements, speak only of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.
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)
CONSOLIDATED FINANCIAL DATA (Unaudited) |
|||||||||
|
|
For the Quarter Ended, |
|||||||
(In thousands, except per share data) |
|
|
|
|
|
|
|||
INCOME STATEMENT |
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
11,677 |
|
$ |
11,489 |
|
$ |
10,006 |
Interest expense |
|
|
3,818 |
|
|
3,523 |
|
|
1,565 |
Net interest income |
|
|
7,859 |
|
|
7,966 |
|
|
8,441 |
Provision for credit losses |
|
|
215 |
|
|
180 |
|
|
240 |
Net interest income after provision for credit losses |
|
|
7,644 |
|
|
7,786 |
|
|
8,201 |
Non-interest income |
|
|
|
|
|
|
|
|
|
Bank charges and service fees |
|
|
793 |
|
|
823 |
|
|
1,092 |
Wealth management revenues |
|
|
498 |
|
|
474 |
|
|
487 |
Mortgage banking revenues |
|
|
- |
|
|
4 |
|
|
1,856 |
Gains on sales of loans, net |
|
|
- |
|
|
1 |
|
|
8 |
Gains on sales of debt securities, net |
|
|
- |
|
|
- |
|
|
12 |
Other |
|
|
247 |
|
|
241 |
|
|
176 |
Total non-interest income |
|
|
1,538 |
|
|
1,543 |
|
|
3,631 |
Non-interest expense |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
4,043 |
|
|
3,840 |
|
|
4,943 |
Professional services |
|
|
255 |
|
|
304 |
|
|
897 |
Data processing fees |
|
|
845 |
|
|
807 |
|
|
989 |
Marketing and promotion |
|
|
188 |
|
|
173 |
|
|
1,369 |
Occupancy |
|
|
390 |
|
|
409 |
|
|
512 |
Regulatory costs |
|
|
135 |
|
|
136 |
|
|
106 |
Depreciation and amortization |
|
|
266 |
|
|
256 |
|
|
293 |
Office supplies and postage |
|
|
96 |
|
|
93 |
|
|
96 |
Other |
|
|
689 |
|
|
641 |
|
|
701 |
Total non-interest expense |
|
|
6,907 |
|
|
6,659 |
|
|
9,906 |
Income before taxes |
|
|
2,275 |
|
|
2,670 |
|
|
1,926 |
Income tax expense |
|
|
535 |
|
|
519 |
|
|
453 |
Net income |
|
$ |
1,740 |
|
$ |
2,151 |
|
$ |
1,473 |
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES |
|
|
|
|
|
|
|
|
|
Common shares outstanding (a) |
|
|
3,581,466 |
|
|
3,578,029 |
|
|
3,575,520 |
Dilutive effect of share-based compensation |
|
|
5,517 |
|
|
3,517 |
|
|
2,317 |
Adjusted weighted average shares (b) |
|
|
3,586,983 |
|
|
3,581,546 |
|
|
3,577,837 |
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE DATA |
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
$ |
0.49 |
|
$ |
0.60 |
|
$ |
0.41 |
Diluted earnings per common share |
|
$ |
0.49 |
|
$ |
0.60 |
|
$ |
0.41 |
|
|
(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) |
|
2024 |
|
2023 |
|
2023 |
|||
BALANCE SHEET DATA |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
73,598 |
|
$ |
102,454 |
|
$ |
15,902 |
Debt securities available for sale |
|
|
139,484 |
|
|
159,772 |
|
|
172,507 |
FRB and FHLB stock |
|
|
2,387 |
|
|
2,372 |
|
|
2,938 |
Loans held for sale-mortgage banking |
|
|
- |
|
|
- |
|
|
39,599 |
Loans held for investment |
|
|
677,870 |
|
|
668,808 |
|
|
630,209 |
Allowance for credit losses |
|
|
(9,463) |
|
|
(9,284) |
|
|
(8,936) |
Net loans held for investment |
|
|
668,407 |
|
|
659,524 |
|
|
621,273 |
Premises and equipment, net |
|
|
10,836 |
|
|
10,955 |
|
|
11,527 |
Operating lease right of use asset |
|
|
855 |
|
|
938 |
|
|
1,393 |
Accrued interest receivable |
|
|
4,371 |
|
|
4,206 |
|
|
3,180 |
Other |
|
|
28,316 |
|
|
27,984 |
|
|
28,971 |
Total assets |
|
$ |
928,254 |
|
$ |
968,205 |
|
$ |
897,290 |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
|
$ |
170,976 |
|
$ |
184,442 |
|
$ |
195,125 |
Interest-bearing – |
|
|
|
|
|
|
|
|
|
Savings, interest checking and money market |
|
|
565,151 |
|
|
582,855 |
|
|
525,644 |
Time deposits |
|
|
69,984 |
|
|
69,906 |
|
|
51,609 |
Total deposits |
|
|
806,111 |
|
|
837,203 |
|
|
772,378 |
Short-term borrowings |
|
|
- |
|
|
- |
|
|
9 |
Guaranteed preferred beneficial interest in Company's |
|
|
15,464 |
|
|
15,464 |
|
|
15,000 |
Accrued interest payable |
|
|
1,167 |
|
|
937 |
|
|
380 |
Accrued expenses |
|
|
2,597 |
|
|
4,105 |
|
|
3,801 |
Operating lease liabilities |
|
|
961 |
|
|
1,048 |
|
|
1,525 |
Other |
|
|
1,557 |
|
|
1,030 |
|
|
427 |
Total liabilities |
|
|
827,857 |
|
|
859,787 |
|
|
793,520 |
Common stock |
|
|
36 |
|
|
36 |
|
|
36 |
Capital surplus – common stock |
|
|
26,800 |
|
|
26,572 |
|
|
26,599 |
Retained earnings |
|
|
86,783 |
|
|
93,186 |
|
|
88,954 |
|
|
|
(2,686) |
|
|
(1,528) |
|
|
(1,664) |
Accumulated other comprehensive income, net |
|
|
(10,536) |
|
|
(9,848) |
|
|
(10,155) |
Total stockholders' equity |
|
|
100,397 |
|
|
108,418 |
|
|
103,770 |
Total liabilities and stockholders' equity |
|
$ |
928,254 |
|
$ |
968,205 |
|
$ |
897,290 |
|
|
|
|
|
|
|
|
|
|
OTHER SELECTED DATA |
|
|
|
|
|
|
|
|
|
Trust assets under administration |
|
$ |
408,891 |
|
$ |
388,829 |
|
$ |
368,558 |
Core deposits (1) |
|
$ |
806,111 |
|
$ |
837,203 |
|
$ |
772,387 |
Tangible book value per common share (2) |
|
$ |
28.51 |
|
$ |
30.38 |
|
$ |
29.14 |
Tangible book value per common share excluding |
|
$ |
31.50 |
|
$ |
33.13 |
|
$ |
31.99 |
Full time equivalent employees |
|
|
140 |
|
|
144 |
|
|
212 |
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. |
CONSOLIDATED FINANCIAL DATA (Unaudited)
|
|||||||||||||||||||||||||
AVERAGE BALANCE, |
|
For the Quarter Ended
|
|
For the Quarter Ended
|
|
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 |
|
$ |
85,534 |
|
$ |
1,165 |
|
5.48 % |
|
$ |
40,235 |
|
$ |
435 |
|
4.38 % |
|
$ |
132 |
|
$ |
598 |
|
$ |
730 |
FRB and FHLB stock |
|
|
2,373 |
|
|
33 |
|
5.59 % |
|
|
3,078 |
|
|
36 |
|
4.74 % |
|
|
3 |
|
|
(6) |
|
|
(3) |
Debt securities available |
|
|
147,843 |
|
|
1,264 |
|
3.44 % |
|
|
174,532 |
|
|
1,376 |
|
3.20 % |
|
|
96 |
|
|
(208) |
|
|
(112) |
Loans held for sale- |
|
|
- |
|
|
- |
|
0.00 % |
|
|
28,989 |
|
|
399 |
|
5.58 % |
|
|
(199) |
|
|
(200) |
|
|
(399) |
Loans held for investment |
|
|
672,036 |
|
|
9,215 |
|
5.51 % |
|
|
623,266 |
|
|
7,760 |
|
5.05 % |
|
|
787 |
|
|
668 |
|
|
1,455 |
Allowance for credit |
|
|
(9,282) |
|
|
- |
|
0.00 % |
|
|
(8,764) |
|
|
- |
|
0.00 % |
|
|
- |
|
|
- |
|
|
- |
Total |
|
$ |
898,504 |
|
$ |
11,677 |
|
5.23 % |
|
$ |
861,336 |
|
$ |
10,006 |
|
4.71 % |
|
$ |
819 |
|
$ |
852 |
|
$ |
1,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest checking and |
|
$ |
531,236 |
|
$ |
3,034 |
|
2.30 % |
|
$ |
488,887 |
|
$ |
1,240 |
|
1.03 % |
|
$ |
979 |
|
$ |
815 |
|
$ |
1,794 |
Savings |
|
|
43,070 |
|
|
12 |
|
0.11 % |
|
|
52,961 |
|
|
11 |
|
0.08 % |
|
|
3 |
|
|
(2) |
|
|
1 |
Time deposits |
|
|
69,515 |
|
|
510 |
|
2.95 % |
|
|
53,714 |
|
|
77 |
|
0.60 % |
|
|
411 |
|
|
22 |
|
|
433 |
Short-term borrowings |
|
|
- |
|
|
- |
|
0.00 % |
|
|
792 |
|
|
6 |
|
3.07 % |
|
|
(3) |
|
|
(3) |
|
|
(6) |
Subordinated debentures |
|
|
15,464 |
|
|
262 |
|
6.81 % |
|
|
15,000 |
|
|
231 |
|
6.25 % |
|
|
24 |
|
|
7 |
|
|
31 |
Total |
|
$ |
659,285 |
|
$ |
3,818 |
|
2.33 % |
|
$ |
611,354 |
|
$ |
1,565 |
|
1.04 % |
|
$ |
1,414 |
|
$ |
839 |
|
$ |
2,253 |
Net Interest Income |
|
|
|
|
$ |
7,859 |
|
|
|
|
|
|
$ |
8,441 |
|
|
|
|
|
|
|
|
|
|
|
Net Interest Spread |
|
|
|
|
|
|
|
2.90 % |
|
|
|
|
|
|
|
3.67 % |
|
|
|
|
|
|
|
|
|
Net Interest Margin |
|
|
|
|
|
|
|
3.52 % |
|
|
|
|
|
|
|
3.97 % |
|
|
|
|
|
|
|
|
|
|
|
For the Quarter
Ended |
||||
(In thousands) |
|
2024 |
|
2023 |
||
OTHER AVERAGE BALANCES |
|
|
|
|
|
|
Total assets |
|
$ |
952,223 |
|
$ |
916,631 |
Core deposits |
|
|
821,664 |
|
|
791,970 |
Total equity |
|
|
103,816 |
|
|
102,774 |
KEY RATIOS |
|
|
|
|
|
|
Return on average common stockholders' equity (a) |
|
|
6.12 % |
|
|
5.26 % |
Return on average assets (b) |
|
|
0.74 % |
|
|
0.65 % |
Efficiency ratio (Consolidated) |
|
|
73.50 % |
|
|
82.06 % |
Efficiency ratio (Bank) |
|
|
69.57 % |
|
|
78.96 % |
|
|
(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. |
CONSOLIDATED FINANCIAL DATA (Unaudited) |
|||||||||
|
|
As of |
|||||||
(In thousands) |
|
2024 |
|
2023 |
|
2023 |
|||
ASSET QUALITY |
|
|
|
|
|
|
|
|
|
Loans 90 days or more delinquent and accruing interest |
|
$ |
882 |
|
$ |
832 |
|
$ |
- |
Non-accrual loans |
|
|
2,551 |
|
|
2,519 |
|
|
1,469 |
Total nonperforming loans |
|
$ |
3,433 |
|
$ |
3,351 |
|
$ |
1,469 |
Repossessed assets, net |
|
|
49 |
|
|
33 |
|
|
64 |
Total nonperforming assets |
|
$ |
3,482 |
|
$ |
3,384 |
|
$ |
1,533 |
Allowance for credit losses |
|
$ |
9,463 |
|
$ |
9,284 |
|
$ |
8,936 |
Ratio of total nonperforming loans to total loans |
|
|
0.51 % |
|
|
0.50 % |
|
|
0.22 % |
Ratio of total nonperforming assets to total assets |
|
|
0.38 % |
|
|
0.35 % |
|
|
0.17 % |
Ratio of nonperforming loans to total assets |
|
|
0.37 % |
|
|
0.35 % |
|
|
0.16 % |
Ratio of allowance for credit losses to loans held for |
|
|
1.40 % |
|
|
1.39 % |
|
|
1.42 % |
Ratio of allowance for credit losses to total loans |
|
|
1.40 % |
|
|
1.39 % |
|
|
1.33 % |
Ratio of allowance for credit losses to nonperforming |
|
|
276 % |
|
|
277 % |
|
|
608 % |
|
|
For the Quarter
Ended |
||||
(In thousands) |
|
2024 |
|
2023 |
||
Changes in Nonperforming Loans: |
|
|
|
|
|
|
Balance, beginning of period |
|
$ |
3,351 |
|
$ |
1,355 |
Additions to nonperforming |
|
|
966 |
|
|
211 |
Charge-offs |
|
|
(1) |
|
|
(7) |
Reclassified back to performing |
|
|
(832) |
|
|
(1) |
Principal payments received |
|
|
(33) |
|
|
(74) |
Transferred to repossessed assets |
|
|
(18) |
|
|
(15) |
Balance, end of period |
|
$ |
3,433 |
|
$ |
1,469 |
CONSOLIDATED FINANCIAL DATA (Unaudited) |
||||||
|
|
For the Quarter
Ended |
||||
(In thousands) |
|
2024 |
|
2023 |
||
Changes in Allowance for Credit Losses: |
|
|
|
|
|
|
Balance, beginning of period |
|
$ |
9,459 |
|
$ |
8,831 |
Cumulative effect of CECL adoption |
|
|
- |
|
|
125 |
Provision |
|
|
215 |
|
|
240 |
Loans charged off |
|
|
(55) |
|
|
(57) |
Loan recoveries |
|
|
4 |
|
|
6 |
Balance, end of period |
|
$ |
9,623 |
|
$ |
9,145 |
|
|
|
|
|
|
|
Components: |
|
|
|
|
|
|
Allowance for loan losses |
|
$ |
9,463 |
|
$ |
8,936 |
Allowance for unfunded commitments |
|
$ |
160 |
|
$ |
209 |
|
|
|
|
|
|
|
Ratio of net charge-offs to average total loans |
|
|
(0.008) % |
|
|
(0.008) % |
Ratio of net charge-offs to average total loans, annualized |
|
|
(0.030) % |
|
|
(0.031) % |
|
|
As of |
|||||||
(In thousands) |
|
2024 |
|
2023 |
|
2023 |
|||
CREDIT CONCENTRATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
61,700 |
|
$ |
62,019 |
|
$ |
61,169 |
Construction |
|
|
3,187 |
|
|
5,247 |
|
|
16,636 |
Agricultural |
|
|
34,013 |
|
|
35,220 |
|
|
27,559 |
Land and land development |
|
|
8,042 |
|
|
7,992 |
|
|
6,312 |
Owner-occupied commercial real estate |
|
|
35,872 |
|
|
35,260 |
|
|
33,828 |
Commercial real estate |
|
|
135,325 |
|
|
135,858 |
|
|
124,686 |
Small business administration |
|
|
19,036 |
|
|
18,046 |
|
|
18,194 |
Consumer |
|
|
88,043 |
|
|
88,066 |
|
|
80,288 |
Subtotal gross loans held for investment |
|
$ |
385,218 |
|
$ |
387,708 |
|
$ |
368,672 |
Consolidated |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
94,357 |
|
$ |
93,949 |
|
$ |
96,383 |
Construction |
|
|
14,447 |
|
|
21,648 |
|
|
28,923 |
Agricultural |
|
|
36,514 |
|
|
37,720 |
|
|
27,609 |
Land and land development |
|
|
10,165 |
|
|
8,416 |
|
|
8,082 |
Owner-occupied commercial real estate |
|
|
86,237 |
|
|
84,386 |
|
|
76,215 |
Commercial real estate |
|
|
251,370 |
|
|
245,939 |
|
|
241,313 |
Small business administration |
|
|
72,120 |
|
|
63,836 |
|
|
53,360 |
Consumer |
|
|
111,584 |
|
|
111,872 |
|
|
97,418 |
Total gross loans held for investment |
|
$ |
676,794 |
|
$ |
667,766 |
|
$ |
629,303 |
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