BNCCORP, INC. Announces Reversal of Deferred Tax Asset Valuation Allowance in the Third Quarter of 2012
BISMARCK, N.D., Sept. 14, 2012 /PRNewswire/ -- BNCCORP, INC. ("BNC" or the "Company") (OTC Markets: BNCC), today announced the reversal of a significant portion of the valuation allowance recorded against its deferred tax assets. The reversal results in the Company recognizing a tax benefit and was based upon consideration of a number of factors, including several consecutive profitable quarters. Concurrently with the reversal of the valuation allowance, the Company is required to estimate and record a provision for income tax expense for interim periods in 2012, which reduces the benefit associated with reversing the valuation allowance. The initial net impact of reversing the valuation allowance and estimating interim income tax expense was a net benefit of approximately $8.8 million.
The amount of income tax expense offsetting the benefit of reversing the valuation allowance for the remainder of the quarter is dependent upon pre-tax earnings for the full quarter. Pre-tax earnings of the Company through the end of the third quarter cannot be determined until after the end of the quarter. Accordingly, the estimated net impact of reversing the valuation allowance and recording income tax expense for the full quarter is not presented herein.
About the Company
BNCCORP, INC., headquartered in Bismarck, N.D., 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 Arizona, Minnesota and North Dakota from 15 locations. BNC also conducts mortgage banking from 12 locations in Illinois, Kansas, Nebraska, Missouri, Minnesota and Arizona.
This news release may contain "forward-looking statements" within the meaning 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", "plan", "intend", "estimate", "may", "will", "would", "could", "should", or other expressions. 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. 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.
SOURCE BNCCORP, INC.