FT Markets Data
BNCCorp Inc

BNCCORP, INC. REPORTS SECOND QUARTER NET INCOME OF $2.2 MILLION, OR $0.62 PER DILUTED SHARE

Highlights

  • Net income during the second quarter of 2025 increased $324 thousand, or 17.4%, to $2.2 million, or $0.62 per diluted share, from $1.9 million, or $0.53 per diluted share, in the 2024 period.
  • Return on average assets improved to 0.92% compared to 0.73% for the first quarter of 2025 and 0.82% for the second quarter of 2024.
  • Loans held for investment increased $39.9 million, or 5.7%, from March 31, 2025. At June 30, 2025, loans held for investment totaled $739.2 million compared to $699.3 million at March 31, 2025.
  • The efficiency ratio improved to 68.83% in the second quarter of 2025 versus 72.86% in the second quarter of 2024.
  • Net interest margin increased to 3.75% for the second quarter of 2025 compared to 3.42% for the first quarter of 2025 and 3.54% for the first quarter of 2024.
  • Yield on loans held for investment improved to 6.04% for the second quarter of 2025 compared to 5.59% in the second quarter of 2024.
  • The ratio of loans held for investment-to-deposits increased to 90.0% at June 30, 2025 from 83.4% at December 31, 2024.
  • Allowance for credit losses as of June 30, 2025, decreased to 1.24% of loans held for investment compared to 1.32% as of December 31, 2024.

BISMARCK, N.D. , July 30, 2025 /PRNewswire/ -- BNCCORP, INC. (BNC or the Company) (OTCQX Markets: BNCC), which operates community banking and wealth management businesses in North Dakota and Arizona, today reported financial results for the second quarter ended June 30, 2025.

Management Commentary

"We delivered solid metrics during the second quarter in several key areas," said Daniel J. Collins, BNC's President and Chief Executive Officer. "Loan demand was particularly healthy during the quarter resulting in a 5.7% net increase in loans outstanding in the second quarter, returning year-to-date loan growth to a strong position heading into the second half of 2025."

"A deeper look at our performance compared to a year ago shows net interest margin improvement reflecting success in funding new loans and renewing maturing loans at current market rates and improvement in the efficiency ratio as we continue to manage costs with discipline. Our steady credit quality reflects the careful construction of our loan portfolio and the resilience of our markets. Overall, the second quarter reflects our team's thoughtful execution of our strategy to position the Company for long-term success."

2025 Versus 2024 Second Quarter Comparison

The Company reported net income of $2.2 million, or $0.62 per diluted share, for the quarter compared to $1.9 million, or $0.53 per diluted share, in the second quarter of 2024.

Second quarter interest income increased $1.3 million, or 11.4%, to $12.5 million from $11.3 million in the second quarter of 2024. Average yield on interest-earning assets in the quarter improved to 5.56% from 5.30% in the second quarter of 2024 driven by a $38.0 million period-over-period increase in the average balance of loans held for investment and higher origination yields in addition to $23.6 million higher average cash and cash equivalent balances. Those increases were partially offset by lower yields on cash and cash equivalents and a lower average balance of debt securities during the quarter.

Interest expense in the second quarter of 2025 was $4.1 million, an increase of $428 thousand from the 2024 period. The cost of core deposits in the second quarter of 2025 rose to 1.85% versus 1.74% in the second quarter of 2024. The consolidated average balance of deposits increased by $52.3 million compared to the second quarter of 2024. The cost of interest-bearing liabilities was 2.40% during the second quarter of 2025, compared to 2.34% in the same period of 2024.

Net interest income for the second quarter of 2025 was $8.5 million, an increase of $855 thousand, or 11.3%, from the second quarter of 2024. Net interest margin was 3.75% in the second quarter of 2025 compared to 3.58% reported in the prior year period.

Non-interest income during the second quarter of 2025 was $1.4 million, compared to $1.5 million in the second quarter of 2024. Bank charges and service fees were $88 thousand lower quarter-over-quarter primarily due to a reduction in deposits held in one-way sell positions. Using an associated banking network, the Company generates fee income on deposits not otherwise deployed by placing those deposits with other financial institutions to meet their liquidity needs. The deposits can be reclaimed for liquidity use by the Company at any time. Fees derived from the movement of deposits off the balance sheet can fluctuate significantly based on our customers' excess funding needs. As of June 30, 2025, off-balance sheet deposits were $23.6 million compared to $18.5 million as of December 31, 2024. During the second quarter of 2025, the Company recorded a one-time gain on sale of loans of $114 thousand. Gains on sales of loans can vary period-over-period. Other income is lower than the prior period due to reduced revenues from SBIC investments.

Non-interest expense during the second quarter of 2025 increased $198 thousand, or 3.0%, period-over-period, primarily due to a $128 thousand increase in professional services expense and a $99 thousand increase in salary and employee benefit expenses. The increase in professional services expense is due to higher legal and consulting fees. The Company reported a modest increase in salary and employee benefits on a period-over-period basis. Merit-based and inflationary increases in salaries and employee benefits were partially offset by lower headcount.

In the second quarter of 2025, consolidated income tax expense was $671 thousand, compared to $571 thousand in the second quarter of 2024. The Company maintained an effective tax rate of 23.5% for both periods presented.

Tangible book value per common share on June 30, 2025 was $28.44, compared to $26.60 at December 31, 2024. The Company's tangible common equity capital ratio increased to 10.63% as of June 30, 2025, compared to 9.68% on December 31, 2024.

2025 Versus 2024 First Six Months Comparison

The Company reported net income of $3.9 million, or $1.11 per diluted share, for the first six months of 2025 compared to $3.6 million, or $1.01 per diluted share, in the first six months of 2024.

Interest income increased $1.6 million, or 7.0%, to $24.5 million in the first half of 2025 from $22.9 million in the first half of 2024. Average yield on interest-earning assets in the first half improved to 5.45% from 5.26% in the first half of 2024 driven by a $30.8 million period-over-period increase in the average balance of loans held for investment and higher origination yields and higher balances of cash and cash equivalents. Those increases were partially offset by lower yields on cash and cash equivalents and a lower average balance and yields on debt securities during the period.

Interest expense in the first half of 2025 was $8.2 million, an increase of $759 thousand from the 2024 period. The cost of core deposits in the first six months of 2025 rose to 1.86% versus 1.74% in the first six months of 2024. The consolidated average balance of deposits increased by $38.8 million compared to the first half of 2024. The cost of interest-bearing liabilities was 2.41% during the first six months of 2025, compared to 2.34% in the same period of 2024.

Net interest income for the first half of 2025 was $16.3 million, an increase of $847 thousand, or 5.5%, from the first half of 2024. Net interest margin was 3.62% in the 2025 six-month period compared to 3.55% reported in the prior year period.

Non-interest income in the first six months of 2025 was $2.8 million compared to $3.0 million in the 2024 first six months. Bank charges and service fees were $213 thousand lower period-over-period primarily due to lower letter of credit fees and interchange income, and a reduction in deposits held in one-way sell positions. During 2025, the Company recorded a one-time gain on sale of loans of $114 thousand. Gains on sales of loans can vary period-over-period. Other income is lower than the prior period due to reduced revenues from SBIC investments.

Non-interest expense during the first six months of 2025 increased $120 thousand, or 1.0%, year-over-year, primarily due to a $135 thousand increase in professional services expense and higher salary and employee benefit expense. The Company reported a modest increase in salary and employee benefits of $144 thousand, or 1.8% year-over-year. Merit-based and inflationary increases in salaries and employee benefits were partially offset by lower headcount.

During the six-month period ended June 30, 2025, consolidated income tax expense was $1.2 million, compared to $1.1 million in the first half of 2024.  The Company maintained an effective tax rate of 23.5% for both periods presented.

Assets and Liabilities

Total assets were $942.0 million at June 30, 2025 versus $966.7 million at December 31, 2024. Total loans held for investment were $739.2 million on June 30, 2025 compared to $698.7 million on December 31, 2024. Debt securities decreased $6.1 million from year-end 2024, primarily due to normal amortization, while cash and cash equivalent balances totaled $43.3 million on June 30, 2025 compared to $100.8 million on December 31, 2024.

Total deposits decreased $16.4 million to $821.1 million as of June 30, 2025, from a balance of $837.5 million on December 31, 2024. The Company also maintains off-balance sheet transactional deposit accounts and off-balance sheet time deposit accounts. Off-balance sheet deposits can fluctuate significantly as customers' cash sources or uses change. The Company remains committed to cultivating new deposit relationships and prioritizing liquidity.

The following table provides additional detail on the Company's total deposit relationships:

As of

(In thousands)


June 30,

2025


December 31,

2024


June 30,

2024

Deposits:










Non-interest-bearing


$

180,921


$

172,456


$

171,112

Interest-bearing –










Savings, interest checking and money market



536,435



579,608



546,080

Time deposits



103,696



85,436



75,173

Total on balance sheet deposits



821,052



837,500



792,365











Off-balance sheet deposits (1)



23,581



18,531



16,814











Total available deposits


$

844,633


$

856,031


$

809,179

(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 June 30, 2025, the Company managed off-balance sheet time deposit balances of $1.2 million, compared to $13.9 million time deposit balances as of December 31, 2024 and $24.5 million time deposit balances as of June 30, 2024.

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 approximately 75% of its customers' deposit balances. This fact, combined with the Company's strong balance sheet and management's sustained focus on fostering a relationship-focused culture, has allowed the Company to maintain a significant deposit base.

Trust assets under administration increased 4.0%, or $17.1 million, to $445.1 million at June 30, 2025, from $428.0 million at December 31, 2024. The Company has benefited from the acquisition of new assets under administration in 2025 and also experienced increases in the market value of financial assets.

Asset Quality

The allowance for credit losses was $9.2 million as of June 30, 2025 and December 31, 2024. The allowance for credit losses as a percentage of loans held for investment on June 30, 2025 decreased from 1.32% as of December 31, 2024 to 1.24% at current quarter end. The decrease in the allowance to loans ratio was largely due to gross charge-off of $464 thousand in the first six months of 2025. The charge-off were taken against reserves on longer-term non-performing loans.

Past due loans of 31-89 days increased to $1.9 million as of June 30, 2025, compared to $1.2 million as of December 31, 2024. Nonperforming assets were $5.8 million on June 30, 2025, compared to $6.3 million on December 31, 2024. The ratio of nonperforming assets-to-total-assets was 0.62% at June 30, 2025 versus 0.65% at December 31, 2024. At June 30, 2025, $4.8 million, or 82%, of the $5.8 million in nonperforming loans were SBA loans supported by material government guarantees. When excluding the loan balances covered by government guarantees, the Company's non-performing assets-to-total-assets ratio was 0.19% on June 30, 2025.

The Company continues to monitor the evolving macroeconomic and geopolitical environment for possible impacts to the loan portfolio. As of June 30, 2025, classified loans were $4.3 million compared to $4.7 million of classified loans at December 31, 2024. As of June 30, 2025 and December 31, 2024, the Company had $7.1 million and $12.2 million, respectively, of potentially problematic loans, which are risk-rated as "special mention". As of June 30, 2025, $3.7 million of the special mention loan balances are secured by hotels as compared to $10.5 million at March 31, 2025. While the Company has experienced elevated levels of special mention loans for this industry, the loans are not concentrated to a geographical location or specific property type. The remainder of the loans within the hotel industry are pass rated as of June 30, 2025.

BNC's loans held for investment are geographically concentrated in North Dakota and Arizona, comprising 54% and 24%, respectively, of the Company's total loans held for investment portfolio.

The North Dakota economy is influenced by the energy and agriculture industries. Changes in energy supply and demand, along with market sentiment have recently caused a decrease in oil prices that, if prolonged, could have a negative impact on the oil industry and ancillary services. Potential risks to North Dakota's energy and agriculture industries include the possibility of adverse national legislation, potential effects of trade policy, and changes in economic conditions. Depending on the severity of their impact, these factors could present potential challenges to credit quality in North Dakota.

The Arizona economy continues to diversify but continues to be influenced by the leisure and travel industries. Positive trends in both industries have been noted, but an extended slowdown in these industries could negatively impact credit quality in Arizona. While the Company's portfolio includes various sized loans spread over a large number of industry sectors, it has meaningful concentrations of loans to the hospitality and commercial real estate industries.

The following table approximately describes the Company's concentrations by industry:

Loans Held for Investment by Industry Sector












(in thousands)

June 30, 2025


December 31, 2024

Non-owner Occupied Commercial Real estate – not otherwise categorized

$

193,575


26

%


$

192,741


28

%

Consumer, not otherwise categorized


100,957


14




99,243


14


Hotels


93,375


12




86,863


12


Healthcare and social assistance


38,039


5




32,447


5


Agriculture, forestry, fishing and hunting


36,782


5




36,763


5


Retail trade


30,492


4




34,186


5


Transportation and warehousing


29,653


4




31,124


5


Non-hotel accommodation and food service


28,765


4




27,288


4


Art, entertainment and recreation


28,320


4




27,747


4


Construction contractors


22,664


3




13,938


2


Mining, oil and gas extraction


21,523


3




23,685


4


Real estate and rental and leasing support services


20,066


3




15,385


2


Manufacturing


18,221


3




15,333


2


Other service


16,749


2




14,325


2


Educational services


12,789


2




13,595


2


Utilities


12,285


2




720


-


Professional, scientific, and technical services


9,983


1




9,854


1


Finance and insurance


9,014


1




8,586


1


Public administration


6,943


1




7,357


1


All other


8,192


1




6,602


1


   Total gross loans held for investment

$

738,387


100

%


$

697,782


100

%

Capital

Banks and bank holding companies operate under separate regulatory capital requirements. As of June 30, 2025, the Company's capital ratios exceeded all regulatory capital thresholds, including the capital conservation buffer.

A summary of the Company's and the Bank's capital ratios is presented below:

June 30,

2025


December 31,

2024

BNCCORP, INC. (Consolidated)





Tier 1 leverage


12.90 %


12.75 %

Common equity tier 1 risk based capital


12.41 %


12.36 %

Tier 1 risk based capital


14.20 %


14.22 %

Total risk based capital


15.27 %


15.35 %

Tangible common equity


10.63 %


9.68 %






BNC National Bank





Tier 1 leverage


12.10 %


11.89 %

Common equity tier 1 risk based capital


13.32 %


13.25 %

Tier 1 risk based capital


13.32 %


13.25 %

Total risk based capital


14.39 %


14.38 %

Tangible common equity


11.51 %


10.49 %

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 BASEL III to exclude changes in accumulated other comprehensive income from the calculation of regulatory ratios.

Share Repurchases

In December 2020, the Company's Board of Directors approved a share repurchase program authorizing the repurchase of 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 $1.2 million, or approximately $23.25 per share. The Company has made no other share repurchases of common stock. As of June 30, 2025, there was 125,000 shares remaining under the current authorized share repurchase program.

About BNCCORP, INC.

BNCCORP, INC., headquartered in Bismarck, ND, is a registered bank holding company dedicated to providing banking and wealth management services to businesses and consumers in its local markets. The Company operates community banking and wealth management businesses in North Dakota and Arizona from 11 locations.

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 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; risks associated with our acquisition and growth strategies; and other risks, including the potential impact of the imposition of tariffs or retaliatory tariffs, 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.

FOR FURTHER INFORMATION:
WEBSITE: www.bnccorp.com

(Financial tables attached)

 

BNCCORP, INC.

CONSOLIDATED FINANCIAL DATA

(Unaudited)




For the Quarter
 Ended June 30,


For the Six Months
 Ended June 30,

(In thousands, except per share data)


2025


2024


2025


2024

INCOME STATEMENT













Interest income


$

12,534


$

11,251


$

24,534


$

22,928

Interest expense



4,082



3,654



8,231



7,472

Net interest income



8,452



7,597



16,303



15,456

Provision for credit losses



225



30



325



245

Net interest income after provision for credit losses



8,227



7,567



15,978



15,211

Non-interest income













Bank charges and service fees



686



774



1,354



1,567

Wealth management revenues



492



502



1,013



1,000

Gains on sales of loans, net



114



3



113



3

Other



138



189



334



436

Total non-interest income



1,430



1,468



2,814



3,006

Non-interest expense













Salaries and employee benefits



3,868



3,769



7,956



7,812

Professional services



391



263



653



518

Data processing fees



848



862



1,671



1,707

Marketing and promotion



181



194



364



382

Occupancy



406



378



805



768

Regulatory costs



133



137



265



272

Depreciation and amortization



271



273



544



539

Office supplies and postage



103



102



196



198

Other



601



626



1,177



1,315

Total non-interest expense



6,802



6,604



13,631



13,511

Income before taxes



2,855



2,431



5,161



4,706

Income tax expense



671



571



1,213



1,106

Net income


$

2,184


$

1,860


$

3,948


$

3,600














WEIGHTED AVERAGE SHARES













Common shares outstanding (a)



3,541,774



3,533,359



3,540,931



3,555,215

Dilutive effect of share-based compensation



1,149



5,793



1,060



5,516

Adjusted weighted average shares (b)



3,542,923



3,539,152



3,541,991



3,560,731














EARNINGS PER SHARE DATA













Basic earnings per common share


$

0.62


$

0.53


$

1.12


$

1.01

Diluted earnings per common share


$

0.62


$

0.53


$

1.11


$

1.01



(a)

Denominator for basic earnings per common share

(b)

Denominator for diluted earnings per common share

 

BNCCORP, INC.

CONSOLIDATED FINANCIAL DATA

(Unaudited)




As of

(In thousands, except share, per-share and full-time equivalent data)


June 30,

2025


December 31,

2024


June 30,

2024

BALANCE SHEET DATA










Cash and cash equivalents


$

43,255


$

100,815


$

56,104

Debt securities available for sale



123,438



129,522



135,082

FRB and FHLB stock



2,386



2,387



2,387

Loans held for investment



739,151



698,724



687,009

Allowance for credit losses



(9,150)



(9,223)



(9,448)

Net loans held for investment



730,001



689,501



677,561

Premises and equipment, net



10,445



10,893



11,102

Operating lease right of use asset



501



618



771

Accrued interest receivable



4,101



4,108



4,299

Other



27,860



28,837



28,513

Total assets


$

941,987


$

966,681


$

915,819











Deposits:










Non-interest-bearing


$

180,921


$

172,456


$

171,112

Interest-bearing –










Savings, interest checking and money market



536,435



579,608



546,080

Time deposits



103,696



85,436



75,173

Total deposits



821,052



837,500



792,365

Guaranteed preferred beneficial interest in Company's subordinated debentures



15,464



15,464



15,464

Accrued interest payable



1,452



1,248



1,095

Accrued expenses



2,151



2,832



2,856

Operating lease liabilities



565



700



870

Dividends payable



-



14,304



-

Other



1,086



966



854

Total liabilities



841,770



873,014



813,504

Common stock



37



36



35

Capital surplus – common stock



27,127



26,904



26,841

Retained earnings



82,615



78,667



88,643

Treasury stock



(2,666)



(2,696)



(2,687)

Accumulated other comprehensive income, net



(6,896)



(9,244)



(10,517)

Total stockholders' equity



100,217



93,667



102,315

Total liabilities and stockholders' equity


$

941,987


$

966,681


$

915,819











OTHER SELECTED DATA










Trust assets under administration


$

445,063


$

427,994


$

403,839

Core deposits (1)


$

821,052


$

837,500


$

792,365

Tangible book value per common share (2)


$

28.44


$

26.60


$

29.05

Tangible book value per common share excluding accumulated other comprehensive income, net


$

30.40


$

29.22


$

32.04

Full time equivalent employees



136



136



139

Common shares outstanding



3,523,875



3,521,375



3,521,710



(1)

Core deposits consist of all deposits with customers.

(2)

Tangible book value per common share is equal to book value per common share.

 

BNCCORP, INC.

CONSOLIDATED FINANCIAL DATA

(Unaudited)


AVERAGE BALANCE, YIELD EARNED, AND COST PAID


For the Quarter Ended

June 30, 2025


For the Quarter Ended

June 30, 2024


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


$

69,859


$

778


4.47 %


$

46,258


$

631


5.48 %


$

(132)


$

279


$

147

FRB and FHLB stock



2,386



36


6.05 %



2,387



38


6.40 %



(2)



-



(2)

Debt securities available for sale



125,369



954


3.05 %



136,806



1,173


3.45 %



(126)



(93)



(219)

Loans held for investment



715,441



10,766


6.04 %



677,454



9,409


5.59 %



816



541



1,357

Allowance for credit losses



(9,222)



-


0.00 %



(9,431)



-


0.00 %



-



-



-

    Total


$

903,833


$

12,534


5.56 %


$

853,474


$

11,251


5.30 %


$

556


$

727


$

1,283



























Liabilities


























Interest checking and money market


$

524,937


$

2,986


2.28 %


$

497,882


$

2,803


2.26 %


$

(42)


$

225


$

183

Savings



42,265



11


0.10 %



43,278



12


0.11 %



(1)



-



(1)

Time deposits



100,321



859


3.43 %



70,535



575


3.28 %



21



263



284

Subordinated debentures



15,464



226


5.86 %



15,464



264


6.86 %



(38)



-



(38)

    Total


$

682,987


$

4,082


2.40 %


$

627,159


$

3,654


2.34 %


$

(60)


$

488


$

428

Net Interest Income





$

8,452







$

7,597












Net Interest Spread








3.17 %








2.96 %










Net Interest Margin








3.75 %








3.58 %











AVERAGE BALANCE, YIELD EARNED, AND COST PAID


For the Six Months Ended

June 30, 2025


For the Six Months Ended

June 30, 2024


Six 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


$

82,110


$

1,817


4.46 %


$

65,896


$

1,796


5.48 %


$

(370)


$

391


$

21

FRB and FHLB stock



2,387



71


6.00 %



2,380



71


6.00 %



-



-



-

Debt securities available for sale



126,749



1,968


3.13 %



142,325



2,437


3.44 %



(212)



(257)



(469)

Loans held for investment



705,535



20,678


5.91 %



674,745



18,624


5.55 %



1,218



836



2,054

Allowance for credit losses



(9,220)



-


0.00 %



(9,357)



-


0.00 %



-



-



-

    Total


$

907,561


$

24,534


5.45 %


$

875,989


$

22,928


5.26 %


$

636


$

970


$

1,606



























Liabilities


























Interest checking and money market


$

534,423


$

6,105


2.30 %


$

514,559


$

5,838


2.28 %


$

(32)


$

299


$

267

Savings



43,112



22


0.10 %



43,174



23


0.11 %



(1)



-



(1)

Time deposits



96,616



1,656


3.46 %



70,025



1,085


3.12 %



113



458



571

Short-term borrowings



2



-


4.98 %



-



-


0.00 %



-



-



-

Subordinated debentures



15,464



448


5.84 %



15,464



526


6.84 %



(78)



-



(78)

    Total


$

689,617


$

8,231


2.41 %


$

643,222


$

7,472


2.34 %


$

2


$

757


$

759

Net Interest Income





$

16,303







$

15,456












Net Interest Spread








3.04 %








2.93 %










Net Interest Margin








3.62 %








3.55 %










 

BNCCORP, INC.

CONSOLIDATED FINANCIAL DATA

(Unaudited)




For the Quarter

Ended June 30,


For the Six Months

Ended June 30,

(In thousands)


2025


2024


2025


2024

OTHER AVERAGE BALANCES













Total assets


$

956,966


$

907,476


$

961,180


$

929,850

Core deposits



837,267



784,981



842,100



803,323

Total equity



98,605



101,024



96,979



102,420

KEY RATIOS













Return on average common stockholders' equity (a)



8.23 %



6.67 %



7.55 %



6.39 %

Return on average assets (b)



0.92 %



0.82 %



0.83 %



0.78 %

Efficiency ratio (Consolidated)



68.83 %



72.86 %



71.30 %



73.18 %

Efficiency ratio (Bank)



64.96 %



69.22 %



67.84 %



69.40 %



(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.

 

As of

(In thousands)


June 30,

2025


December 31,

2024


June 30,

2024

ASSET QUALITY










Loans 90 days or more delinquent and accruing interest


$

5


$

-


$

85

Non-accrual loans



5,783



6,275



2,970

Total nonperforming loans


$

5,788


$

6,275


$

3,055

Repossessed assets, net



39



33



11

Total nonperforming assets


$

5,827


$

6,308


$

3,066

Allowance for credit losses


$

9,150


$

9,223


$

9,448

Ratio of total nonperforming loans to total loans



0.78 %



0.90 %



0.44 %

Ratio of total nonperforming assets to total assets



0.62 %



0.65 %



0.33 %

Ratio of nonperforming loans to total assets



0.61 %



0.65 %



0.33 %

Ratio of allowance for credit losses to total loans



1.24 %



1.32 %



1.38 %

Ratio of allowance for credit losses to nonperforming loans



158 %



147 %



309 %

 

For the Quarter

Ended June 30,


For the Six Months

Ended June 30,

(In thousands)


2025


2024


2025


2024

Changes in Nonperforming Loans:













Balance, beginning of period


$

7,254


$

3,433


$

6,275


$

3,351

Additions to nonperforming



78



617



1,113



1,583

Charge-offs



(417)



(1)



(417)



(2)

Reclassified back to performing



(871)



(883)



(879)



(1,715)

Principal payments received



(174)



(97)



(198)



(130)

Transferred to repossessed assets



(82)



(14)



(106)



(32)

Balance, end of period


$

5,788


$

3,055


$

5,788


$

3,055

 

BNCCORP, INC.

CONSOLIDATED FINANCIAL DATA

(Unaudited)




For the Quarter

Ended June 30,


For the Six Months

Ended June 30,

(In thousands)


2025


2024


2025


2024

Changes in Allowance for Credit Losses:













Balance, beginning of period


$

9,446


$

9,623


$

9,388


$

9,459

Provision



225



30



325



245

Loans charged off



(417)



(74)



(464)



(129)

Loan recoveries



6



24



11



28

Balance, end of period


$

9,260


$

9,603


$

9,260


$

9,603














Components:













Allowance for loan losses


$

9,150


$

9,448


$

9,150


$

9,448

Allowance for unfunded commitments


$

110


$

155


$

110


$

155














Ratio of net charge-offs to average total loans



(0.057) %



(0.007) %



(0.064) %



(0.015) %

Ratio of net charge-offs to average total loans, annualized



(0.230) %



(0.030) %



(0.128) %



(0.030) %

 

As of

(In thousands)


June 30,

2025


December 31,

2024


June 30,

2024

CREDIT CONCENTRATIONS










North Dakota










Commercial and industrial


$

80,870


$

69,391


$

63,168

Construction



807



1,056



1,420

Agricultural



39,374



39,301



38,701

Land and land development



7,593



7,803



8,507

Owner-occupied commercial real estate



38,571



38,393



36,596

Commercial real estate



119,278



121,985



134,852

Small business administration



17,773



19,658



18,843

Consumer



94,381



92,645



91,974

Subtotal gross loans held for investment


$

398,647


$

390,232


$

394,061

Consolidated










Commercial and industrial


$

127,485


$

107,778


$

95,577

Construction



12,229



5,903



8,474

Agricultural



42,084



42,103



41,702

Land and land development



8,995



11,243



10,689

Owner-occupied commercial real estate



82,756



81,560



86,706

Commercial real estate



248,275



244,364



250,784

Small business administration



94,706



84,799



75,030

Consumer



121,857



120,032



116,933

Total gross loans held for investment


$

738,387


$

697,782


$

685,895

 

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SOURCE BNCCORP, INC.