BNCCORP Reports Strong First Quarter Results; Earnings Per Share, at 28 Cents, Rise Nearly 22%

Apr 18, 2001, 01:00 ET from BNCCORP, Inc.

    BISMARCK, N.D., April 18 /PRNewswire/ -- BNCCORP, Inc. (Nasdaq:   BNCC)
 today reported quarterly earnings for the three months ended March 31, 2001 of
 $680,000, or basic and diluted earnings per share (EPS) of $0.28.  This
 represented an EPS increase of 21.7% from the same period in 2000, when the
 Company earned $555,000, or $0.23 per share.
     First quarter 2001 EPS of $0.28 reflected income from continuing
 operations of $0.33 per share, offset by a non-recurring charge of $0.05 per
 share for the cumulative effect of a change in accounting principle.  For the
 same quarter of 2000, final EPS of $0.23 included income from continuing
 operations of $0.18 per share, plus an extraordinary gain of $0.05 per share
 on early extinguishment of debt (net of income taxes).
     The financial results for the 2001 first quarter primarily reflected
 rising levels of net interest income and noninterest income.  Net interest
 income for the latest quarter was $3.8 million, up 16.5% from the same period
 in 2000.  Noninterest income was $2.3 million for the three months ended March
 31, 2001, an increase of 32.0% over the same quarter of last year.  Included
 in noninterest income was a $718,000 net gain on sales of securities, which
 more than offset a decrease in insurance commissions and brokerage income due
 to current marketplace conditions. Noninterest expense was $4.6 million for
 the first quarter of 2001.  Excluding the expense impact of the trust
 preferred securities issued in July 2000, noninterest expense for the 2001
 first quarter was $4.4 million, up 12.7% from the year-ago period on a
 comparable basis.
     "BNCCORP's first quarter performance was highlighted by improvements in
 net interest income and the continued expansion of our loan and deposit base,"
 said President Gregory K. Cleveland.  He continued, "In particular, we have
 begun to shift a portion of our asset mix to loans from investment securities,
 building on our solid balance sheet and taking advantage of the growing loan
 demand we are experiencing in our markets, including the Arizona market, where
 we recently opened a loan and deposit production office.  In the prior year,
 we maintained a low loan-to-assets ratio relative to our peers, with a
 substantial portion of our assets held in the form of investment securities.
 This securities portfolio has considerable unrealized gains, which we are now
 in a position to capture as we transition to higher levels of quality loans.
 This activity is designed to enhance profitability while maintaining good
 credit quality and a sound balance sheet at a time of increasing concern for
 the nation's economy."
     The strategic transition in asset mix is evident in the comparison of
 BNCCORP's balance sheet between December 31, 2000 and March 31, 2001.  Total
 assets were $571.9 million at March 31, 2001, up 0.3% from year-end 2000.  The
 investment securities portfolio decreased by approximately 3.0% since
 December 31, 2000, to stand at $255.2 million at the end of the 2001 first
 quarter, while total loans rose by a nearly-equivalent 2.8% over the same
 period, to $276.4 million.  At the end of the 2001 first quarter, total
 deposits were $372.1 million, up 2.7% from December 31, 2000.  The net
 interest margin increased to 2.91% for the recent quarter, as compared to
 2.71% for the last three months of 2000.
     The Company continued its emphasis on strong asset quality.  The ratio of
 nonperforming assets to total assets improved to 0.18% at March 31, 2001, from
 0.49% a year earlier.  The ratio of allowance for credit losses to total
 nonperforming loans was 391% at the close of the latest quarter, versus 209% a
 year earlier.  The allowance for credit losses as a percentage of total loans
 also improved, rising to 1.43% at the end of the 2001 first quarter from 1.17%
 a year ago.  The provision for credit losses declined to $350,000 from
 $482,000 comparing the first quarters of 2001 and 2000, respectively.
     Total stockholders' equity for BNCCORP was approximately $30.9 million at
 March 31, 2001, equivalent to book value per common share of $12.90.  One year
 prior, total stockholders' equity was approximately $23.1 million, or $9.63
 book value per common 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 subsidiary, BNC National Bank.  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.
     The information in this news release includes certain forward-looking
 statements that are based upon assumptions that in the future may prove not to
 have been accurate and are subject to significant risks and uncertainties,
 including statements as to the future performance of the Company.  Although
 the Company believes that the expectations reflected in its forward-looking
 statements are reasonable, it can give no assurance that such expectations or
 any of its forward-looking statements will prove to be correct.  Factors that
 could cause results to differ include, but are not limited to, successful
 performance of internal plans, the impact of competitive services, pricing and
 general economic risks and uncertainties.
 
 
                                 BNCCORP, INC.
                       CONSOLIDATED FINANCIAL HIGHLIGHTS
 
                                                       For the Quarter Ended
                                                              March 31,
     (In thousands, except per share data)              2001           2000
 
     SELECTED INCOME STATEMENT DATA
     Interest income                                  $10,493         $9,183
     Interest expense                                   6,715          5,939
     Net interest income                                3,778          3,244
     Provision for credit losses                          350            482
     Noninterest income                                 2,327          1,763
     Noninterest expense                                4,631          3,901
     Income tax expense                                   335            191
     Income from continuing operations                    789            433
 
     Extraordinary item - gain on early
      extinguishment of debt,
      net of income taxes                                   4            122
     Cumulative effect of change in
      accounting principle,
      net of income taxes                                (113)            --
     Net income                                          $680           $555
 
     BASIC AND DILUTED EARNINGS PER COMMON SHARE
     Earnings per share from continuing operations      $0.33          $0.18
     Extraordinary item - gain on early
      extinguishment of debt,
      net of income taxes                                0.00           0.05
     Cumulative effect of change in
      accounting principle,
      net of income taxes                               (0.05)            --
     Earnings per share                                 $0.28          $0.23
 
 
                                 BNCCORP, INC.
                       CONSOLIDATED FINANCIAL HIGHLIGHTS
 
 
                                                     As of
                                    March 31,     December 31,    March 31,
     (In thousands, except share,
       per share and full time
       equivalent data)               2001            2000          2000
 
     SELECTED BALANCE SHEET DATA
     Total assets                   $571,903        $570,016      $536,048
     Investment securities           255,233         263,185       244,327
     Total loans                     276,449         268,925       255,989
     Allowance for credit losses      (3,956)         (3,588)       (2,991)
     Intangible assets                 2,601           2,719         3,119
     Total deposits                  372,145         362,464       319,958
 
     Total stockholders' equity      $30,889         $29,457       $23,117
     Book value per common share      $12.90          $12.30         $9.63
     Tangible book value
      per common share                $11.81          $11.16         $8.33
     SFAS 115 effect on book
      value per common share           $1.00           $0.71        $(1.18)
     Full time equivalents               193             181           174
     Common shares outstanding     2,394,330       2,395,030     2,399,980
 
 
     CAPITAL RATIOS
     Tier 1 leverage                    5.93%           5.88%         4.68%
     Tier 1 risk-based capital          8.99%           8.92%         6.81%
     Total risk-based capital          12.11%          11.97%        10.97%
 
 
                                 BNCCORP, INC.
                       CONSOLIDATED FINANCIAL HIGHLIGHTS
 
                                                      For the Quarter Ended
                                                             March 31,
     (In thousands)                                    2001           2000
 
     AVERAGE BALANCES
     Assets                                          $563,159       $490,800
     Deposits                                         352,559        319,567
     Loans                                            269,766        253,782
     Earning assets                                   526,845        456,449
     Stockholders' equity                              29,925         22,735
 
     KEY RATIOS
     Return on average equity,
      continuing operations                             10.69%          7.66%
     Return on average equity                            9.22%          9.82%
     Return on average assets,
      continuing operations                              0.57%          0.35%
     Return on average assets                            0.49%          0.45%
     Net interest margin                                 2.91%          2.86%
     Efficiency ratio                                   75.86%         77.91%
     Burden ratio                                        1.66%          1.75%
     Noninterest income as a percent
      of gross revenues                                 38.13%         35.20%
 
 
                                 BNCCORP, INC.
                       CONSOLIDATED FINANCIAL HIGHLIGHTS
 
                                                           As of March 31,
     (In thousands)                                      2001          2000
 
     ASSET QUALITY
     Loans 90 days or more delinquent
      and still accruing interest                        $661            $73
     Nonaccrual loans                                     343          1,342
     Restructured loans                                     9             13
     Total nonperforming loans                          1,013          1,428
     Other real estate owned and
      repossessed assets                                   30          1,185
     Total nonperforming assets                        $1,043         $2,613
     Allowance for credit losses                       $3,956         $2,991
     Ratio of total nonperforming
      loans to total loans                               0.37%          0.56%
     Ratio of total nonperforming
      assets to total assets                             0.18%          0.49%
     Ratio of allowance for
      credit losses to total loans                       1.43%          1.17%
     Ratio of allowance for
      credit losses to total
      nonperforming loans                              390.52%        209.45%
 
 
                                                       For the Quarter Ended
                                                             March 31,
                                                        2001           2000
     Changes in Allowance for Credit Losses:
     Balance, beginning of period                      $3,588         $2,872
     Provision charged to operations expense              350            482
     Loans charged off                                    (28)          (409)
     Loan recoveries                                       46             46
     Balance, end of period                            $3,956         $2,991
 
 
     Ratio of net chargeoffs to
      average total loans                                0.01%         (0.14)%
     Ratio of net chargeoffs to
      avg. total loans, annualized                       0.03%         (0.58)%
 
 
                                 BNCCORP, INC.
                       CONSOLIDATED FINANCIAL HIGHLIGHTS
 
                                                       For the Quarter Ended
                                                              March 31,
     (In thousands, except share data)                   2001           2000
 
     ANALYSIS OF NONINTEREST INCOME
     Net gain on sales of securities                     $718            $46
     Insurance commissions                                508            568
     Brokerage income                                     349            421
     Trust and financial services                         283            262
     Service charges                                      167            133
     Fees on loans                                        164            214
     Rental income                                         19             16
     Other                                                119            103
       Total noninterest income                        $2,327         $1,763
 
 
     ANALYSIS OF NONINTEREST EXPENSE
     Salaries and employee benefits                    $2,349         $2,030
     Depreciation and amortization                        450            387
     Occupancy                                            449            327
     Professional services                                299            397
     Minority interest in income of subsidiary            233             --
     Office supplies, telephone & postage                 230            217
     Marketing and promotion                              156            114
     FDIC and other assessments                            48             47
     Other                                                417            382
       Total noninterest expense                       $4,631         $3,901
 
 
     WEIGHTED AVERAGE SHARES
     Common shares outstanding (a)                  2,394,610      2,399,980
     Incremental shares from
      assumed conversion of
      options                                          16,872            506
     Adjusted weighted average
      shares (b)                                    2,411,482      2,400,486
 
     (a) Denominator for Basic Earnings Per Share
     (b) Denominator for Diluted Earnings Per Share
 
 

SOURCE BNCCORP, Inc.
    BISMARCK, N.D., April 18 /PRNewswire/ -- BNCCORP, Inc. (Nasdaq:   BNCC)
 today reported quarterly earnings for the three months ended March 31, 2001 of
 $680,000, or basic and diluted earnings per share (EPS) of $0.28.  This
 represented an EPS increase of 21.7% from the same period in 2000, when the
 Company earned $555,000, or $0.23 per share.
     First quarter 2001 EPS of $0.28 reflected income from continuing
 operations of $0.33 per share, offset by a non-recurring charge of $0.05 per
 share for the cumulative effect of a change in accounting principle.  For the
 same quarter of 2000, final EPS of $0.23 included income from continuing
 operations of $0.18 per share, plus an extraordinary gain of $0.05 per share
 on early extinguishment of debt (net of income taxes).
     The financial results for the 2001 first quarter primarily reflected
 rising levels of net interest income and noninterest income.  Net interest
 income for the latest quarter was $3.8 million, up 16.5% from the same period
 in 2000.  Noninterest income was $2.3 million for the three months ended March
 31, 2001, an increase of 32.0% over the same quarter of last year.  Included
 in noninterest income was a $718,000 net gain on sales of securities, which
 more than offset a decrease in insurance commissions and brokerage income due
 to current marketplace conditions. Noninterest expense was $4.6 million for
 the first quarter of 2001.  Excluding the expense impact of the trust
 preferred securities issued in July 2000, noninterest expense for the 2001
 first quarter was $4.4 million, up 12.7% from the year-ago period on a
 comparable basis.
     "BNCCORP's first quarter performance was highlighted by improvements in
 net interest income and the continued expansion of our loan and deposit base,"
 said President Gregory K. Cleveland.  He continued, "In particular, we have
 begun to shift a portion of our asset mix to loans from investment securities,
 building on our solid balance sheet and taking advantage of the growing loan
 demand we are experiencing in our markets, including the Arizona market, where
 we recently opened a loan and deposit production office.  In the prior year,
 we maintained a low loan-to-assets ratio relative to our peers, with a
 substantial portion of our assets held in the form of investment securities.
 This securities portfolio has considerable unrealized gains, which we are now
 in a position to capture as we transition to higher levels of quality loans.
 This activity is designed to enhance profitability while maintaining good
 credit quality and a sound balance sheet at a time of increasing concern for
 the nation's economy."
     The strategic transition in asset mix is evident in the comparison of
 BNCCORP's balance sheet between December 31, 2000 and March 31, 2001.  Total
 assets were $571.9 million at March 31, 2001, up 0.3% from year-end 2000.  The
 investment securities portfolio decreased by approximately 3.0% since
 December 31, 2000, to stand at $255.2 million at the end of the 2001 first
 quarter, while total loans rose by a nearly-equivalent 2.8% over the same
 period, to $276.4 million.  At the end of the 2001 first quarter, total
 deposits were $372.1 million, up 2.7% from December 31, 2000.  The net
 interest margin increased to 2.91% for the recent quarter, as compared to
 2.71% for the last three months of 2000.
     The Company continued its emphasis on strong asset quality.  The ratio of
 nonperforming assets to total assets improved to 0.18% at March 31, 2001, from
 0.49% a year earlier.  The ratio of allowance for credit losses to total
 nonperforming loans was 391% at the close of the latest quarter, versus 209% a
 year earlier.  The allowance for credit losses as a percentage of total loans
 also improved, rising to 1.43% at the end of the 2001 first quarter from 1.17%
 a year ago.  The provision for credit losses declined to $350,000 from
 $482,000 comparing the first quarters of 2001 and 2000, respectively.
     Total stockholders' equity for BNCCORP was approximately $30.9 million at
 March 31, 2001, equivalent to book value per common share of $12.90.  One year
 prior, total stockholders' equity was approximately $23.1 million, or $9.63
 book value per common 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 subsidiary, BNC National Bank.  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.
     The information in this news release includes certain forward-looking
 statements that are based upon assumptions that in the future may prove not to
 have been accurate and are subject to significant risks and uncertainties,
 including statements as to the future performance of the Company.  Although
 the Company believes that the expectations reflected in its forward-looking
 statements are reasonable, it can give no assurance that such expectations or
 any of its forward-looking statements will prove to be correct.  Factors that
 could cause results to differ include, but are not limited to, successful
 performance of internal plans, the impact of competitive services, pricing and
 general economic risks and uncertainties.
 
 
                                 BNCCORP, INC.
                       CONSOLIDATED FINANCIAL HIGHLIGHTS
 
                                                       For the Quarter Ended
                                                              March 31,
     (In thousands, except per share data)              2001           2000
 
     SELECTED INCOME STATEMENT DATA
     Interest income                                  $10,493         $9,183
     Interest expense                                   6,715          5,939
     Net interest income                                3,778          3,244
     Provision for credit losses                          350            482
     Noninterest income                                 2,327          1,763
     Noninterest expense                                4,631          3,901
     Income tax expense                                   335            191
     Income from continuing operations                    789            433
 
     Extraordinary item - gain on early
      extinguishment of debt,
      net of income taxes                                   4            122
     Cumulative effect of change in
      accounting principle,
      net of income taxes                                (113)            --
     Net income                                          $680           $555
 
     BASIC AND DILUTED EARNINGS PER COMMON SHARE
     Earnings per share from continuing operations      $0.33          $0.18
     Extraordinary item - gain on early
      extinguishment of debt,
      net of income taxes                                0.00           0.05
     Cumulative effect of change in
      accounting principle,
      net of income taxes                               (0.05)            --
     Earnings per share                                 $0.28          $0.23
 
 
                                 BNCCORP, INC.
                       CONSOLIDATED FINANCIAL HIGHLIGHTS
 
 
                                                     As of
                                    March 31,     December 31,    March 31,
     (In thousands, except share,
       per share and full time
       equivalent data)               2001            2000          2000
 
     SELECTED BALANCE SHEET DATA
     Total assets                   $571,903        $570,016      $536,048
     Investment securities           255,233         263,185       244,327
     Total loans                     276,449         268,925       255,989
     Allowance for credit losses      (3,956)         (3,588)       (2,991)
     Intangible assets                 2,601           2,719         3,119
     Total deposits                  372,145         362,464       319,958
 
     Total stockholders' equity      $30,889         $29,457       $23,117
     Book value per common share      $12.90          $12.30         $9.63
     Tangible book value
      per common share                $11.81          $11.16         $8.33
     SFAS 115 effect on book
      value per common share           $1.00           $0.71        $(1.18)
     Full time equivalents               193             181           174
     Common shares outstanding     2,394,330       2,395,030     2,399,980
 
 
     CAPITAL RATIOS
     Tier 1 leverage                    5.93%           5.88%         4.68%
     Tier 1 risk-based capital          8.99%           8.92%         6.81%
     Total risk-based capital          12.11%          11.97%        10.97%
 
 
                                 BNCCORP, INC.
                       CONSOLIDATED FINANCIAL HIGHLIGHTS
 
                                                      For the Quarter Ended
                                                             March 31,
     (In thousands)                                    2001           2000
 
     AVERAGE BALANCES
     Assets                                          $563,159       $490,800
     Deposits                                         352,559        319,567
     Loans                                            269,766        253,782
     Earning assets                                   526,845        456,449
     Stockholders' equity                              29,925         22,735
 
     KEY RATIOS
     Return on average equity,
      continuing operations                             10.69%          7.66%
     Return on average equity                            9.22%          9.82%
     Return on average assets,
      continuing operations                              0.57%          0.35%
     Return on average assets                            0.49%          0.45%
     Net interest margin                                 2.91%          2.86%
     Efficiency ratio                                   75.86%         77.91%
     Burden ratio                                        1.66%          1.75%
     Noninterest income as a percent
      of gross revenues                                 38.13%         35.20%
 
 
                                 BNCCORP, INC.
                       CONSOLIDATED FINANCIAL HIGHLIGHTS
 
                                                           As of March 31,
     (In thousands)                                      2001          2000
 
     ASSET QUALITY
     Loans 90 days or more delinquent
      and still accruing interest                        $661            $73
     Nonaccrual loans                                     343          1,342
     Restructured loans                                     9             13
     Total nonperforming loans                          1,013          1,428
     Other real estate owned and
      repossessed assets                                   30          1,185
     Total nonperforming assets                        $1,043         $2,613
     Allowance for credit losses                       $3,956         $2,991
     Ratio of total nonperforming
      loans to total loans                               0.37%          0.56%
     Ratio of total nonperforming
      assets to total assets                             0.18%          0.49%
     Ratio of allowance for
      credit losses to total loans                       1.43%          1.17%
     Ratio of allowance for
      credit losses to total
      nonperforming loans                              390.52%        209.45%
 
 
                                                       For the Quarter Ended
                                                             March 31,
                                                        2001           2000
     Changes in Allowance for Credit Losses:
     Balance, beginning of period                      $3,588         $2,872
     Provision charged to operations expense              350            482
     Loans charged off                                    (28)          (409)
     Loan recoveries                                       46             46
     Balance, end of period                            $3,956         $2,991
 
 
     Ratio of net chargeoffs to
      average total loans                                0.01%         (0.14)%
     Ratio of net chargeoffs to
      avg. total loans, annualized                       0.03%         (0.58)%
 
 
                                 BNCCORP, INC.
                       CONSOLIDATED FINANCIAL HIGHLIGHTS
 
                                                       For the Quarter Ended
                                                              March 31,
     (In thousands, except share data)                   2001           2000
 
     ANALYSIS OF NONINTEREST INCOME
     Net gain on sales of securities                     $718            $46
     Insurance commissions                                508            568
     Brokerage income                                     349            421
     Trust and financial services                         283            262
     Service charges                                      167            133
     Fees on loans                                        164            214
     Rental income                                         19             16
     Other                                                119            103
       Total noninterest income                        $2,327         $1,763
 
 
     ANALYSIS OF NONINTEREST EXPENSE
     Salaries and employee benefits                    $2,349         $2,030
     Depreciation and amortization                        450            387
     Occupancy                                            449            327
     Professional services                                299            397
     Minority interest in income of subsidiary            233             --
     Office supplies, telephone & postage                 230            217
     Marketing and promotion                              156            114
     FDIC and other assessments                            48             47
     Other                                                417            382
       Total noninterest expense                       $4,631         $3,901
 
 
     WEIGHTED AVERAGE SHARES
     Common shares outstanding (a)                  2,394,610      2,399,980
     Incremental shares from
      assumed conversion of
      options                                          16,872            506
     Adjusted weighted average
      shares (b)                                    2,411,482      2,400,486
 
     (a) Denominator for Basic Earnings Per Share
     (b) Denominator for Diluted Earnings Per Share
 
 SOURCE  BNCCORP, Inc.