BNCCORP, INC. Announces Settlement with Insurers on Fraud Related Claim
Sep 20, 2012, 05:45 ET
BISMARCK, N.D., Sept. 20, 2012 /PRNewswire/ -- BNCCORP, INC. ("BNC" or the "Company") (OTC Markets: BNCC), announced today that it has executed a settlement agreement with its insurers related to BNC's claim that it had been defrauded. As previously reported in the second quarter of 2010, BNC discovered fraudulent activity by an external company that was servicing residential loans on behalf of BNC. Since that time, the Company has been pursuing a claim under its fidelity bond with its insurers, and the Company has agreed to settle its claim for $7.5 million. After reflecting the costs associated with pursuing and settling the claim, it is expected that BNC's third quarter pre-tax earnings will include approximately $5,000,000 of income related to this settlement.
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.
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