BNCCORP, INC. Reports Second Quarter Net Income To Common Shareholders Of $2.0 Million, Or $0.58 Per Diluted Share

Mr. Franz continued, "The North Dakota economy is notably influenced by the energy and agricultural sectors which have been challenged in recent periods. Despite a small increase in the nonperforming assets ratio this quarter; we have successfully managed these economic challenges as our credit quality metrics remain excellent. In the second quarter, we recognized a provision for credit losses for the first time in two and half years. We believe maintaining our allowance for credit losses results in a balance sheet that is resistant to global and regional economic risks. Our strong balance sheet can provide a solid foundation as we continue building our franchise and creating value for shareholders."

Second Quarter Results

Net interest income for the second quarter of 2016 was $6.482 million, an increase of $66 thousand, or 1.0%, from $6.416 million in the same period of 2015. Overall, the net interest margin increased to 3.01% in the second quarter of 2016 from 2.93% in the second quarter of 2015.

Interest income was $7.346 million for the quarter ended June 30, 2016 compared to $7.112 million in the second quarter of 2015. This increase is the result of higher yields on earning assets partially offset by lower average balances. The yield on assets increased to 3.42% in the second quarter of 2016 from 3.25% in the second quarter of 2015, while the average balance of interest earning assets decreased by $12.3 million. Our average loans held for investment increased by $44.6 million year-over-year while the average balances of loans held for sale and investments were $15.4 million and $31.4 million lower, respectively. Despite the overall decrease in average investments, we have increased our investment in tax exempt municipal securities, which aggregated $90.7 million at June 30, 2016, due to the relatively attractive attributes of these securities in the context of our overall portfolio and balance sheet management activities and value provided via reduced income tax expense.

Interest expense in the second quarter of 2016 was $864 thousand, an increase of $168 thousand from the same period in 2015. In the second quarters of 2016 and 2015, BNC submitted notices to redeem $14.6 million and $20.0 million, respectively, of higher rate callable brokered certificates of deposit, at a cost of $92 thousand and $87 thousand, respectively. The cost of interest bearing liabilities increased to 0.50% in the current quarter from 0.42% in the same period of 2015, primarily due to the issuance of subordinated debt in the fourth quarter of 2015, and an increase in retail certificates of deposit balances in recent quarters. The cost of these liabilities were partially offset by redeeming higher cost brokered certificates of deposit in the second quarter of 2015 and first quarter of 2016. The cost of core deposits was 0.22% in the second quarter of 2016 and 0.16% in the second quarter of 2015, due largely to higher balances of retail certificates of deposits which generally have higher rates than non-maturity deposits. Average interest bearing deposits decreased $23.6 million, or 3.9%, during the second quarter of 2016 compared to the second quarter of 2015, primarily due to the redemption of brokered certificates of deposits.

Provision for credit losses was $400 thousand in the second quarter of 2016. As a result, our allowance for credit losses has remained essentially flat in 2016. This compares with $0 provision for the same period in 2015. 

Preferred stock costs were $0 in the second quarter of 2016 due to the redemption of the preferred stock in the fourth quarter of 2015, and $474 thousand in the second quarter of 2015.

Non-interest income for the second quarter of 2016 was $7.495 million, an increase of $755 thousand, or 11.2%, from $6.740 million in the second quarter of 2015. Excluding the impact of gains on the sale of securities, noninterest income increased $1.282 million or 22.2% primarily due to an increase in mortgage revenue. Mortgage banking production resulted in revenues of $5.354 million in the second quarter of 2016 compared to $4.015 million in the second quarter of 2015. During the second quarter of 2016, we recorded net gains on sales of investments and SBA loan sales of $615 thousand compared to $1.221 million of net gains on sales of these assets in the same period of 2015. Gains on sales of SBA loans have declined as the Company's loan growth has recently favored conventional loans. Gains and losses on sales of assets can vary significantly from period to period.

Non-interest expense for the second quarter of 2016 increased $970 thousand to $10.628 million from $9.658 million in the second quarter of 2015. This increase is primarily related to elevated mortgage banking activities and investment in our technology.

In the second quarter of 2016, income tax expense was $914 thousand compared to $1.211 million in the second quarter of 2015. The effective tax rate was 31.0% in the second quarter of 2016 compared to 34.6% in the same period of 2015. The decrease in the effective tax rate in the second quarter of 2016 is due to a higher percentage of tax exempt income than in the second quarter 2015.

Net income available to common shareholders was $2.035 million, or $0.58 per diluted share, for the second quarter of 2016. Net income available to common shareholders in the second quarter of 2015 was $1.813 million, or $0.52 per diluted share after accounting for dividends paid on preferred stock. The preferred stock costs were $0 in the second quarter of 2016 due to the redemption of the preferred stock in the fourth quarter of 2015, and $474 thousand in the second quarter of 2015.

Six Months Ended June 30, 2016

Net interest income in the first half of 2016 was $12.758 million, a decrease of $265 thousand, or 2.0%, from $13.023 million in the first half of 2015 as the impact of higher yields on earning assets was offset by the impact of lower average earning assets. Yields on earning assets overall increased to 3.43% in the six month period ended June 30, 2016 compared to 3.28% in the same period of 2015, as average loan balances increased as a percentage of average earning assets from approximately 46% to 51%. Average loans held for investment increased $38.9 million, or 11.0%, compared to the first half of the prior year.  On average, mortgage loans held for sale decreased by $12.6 million when compared to 2015. The average balance of investment securities decreased by $32.3 million in the first six months of 2016 compared to the same period a year ago. Overall, the net interest margin increased to 3.01% in the first six months of 2016 from 2.98% in the first six months of 2015.

Interest expense in the first half of 2016 increased to $1.763 million from $1.307 million, or 34.8%, in the same period of 2015. In the first half of 2016 and 2015, BNC submitted notices to redeem $33.4 million and $20.0 million, respectively, of higher rate callable brokered certificates of deposit, at a cost of $233 thousand, and $87 thousand, respectively. Excluding the costs to redeem these brokered deposits, interest expense increased by $311 thousand. The cost of interest bearing liabilities increased to 0.52% in the first half of 2016 from 0.39% in the same period of 2015, primarily due to the issuance of subordinated debt in 2015, and an increase in retail certificates of deposit balances partially offset by the effects of redeeming brokered deposits. The cost of core deposits increased to 0.21% in the first half of 2016 from 0.16% in the first half of 2015 as retail certificates of deposits have increased in recent quarters.

Provision for credit losses was $400 thousand in the first six months of 2016. This provision compares with $0 provision for the same period in 2015.

Non-interest income for the first six months of 2016 was $13.146 million, a decrease of $1.245 million, or 8.7% from $14.391 million in the same period of 2015. The decrease primarily relates to a $1.123 million, or 72.0%, decrease in gains on sales of securities. During the six month period ended June 30, 2016, we recorded a net gain on sales of investments of $437 thousand, compared to a $1.560 million net gain on sales of investments in the same period of 2015. Excluding securities gains, non-interest income decreased 1.0%.

Non-interest expense for the first six months of 2016 was $20.474 million, an increase of $1.150 million, or 6.0%, from $19.324 million in the same period of 2015. This increase is primarily related to compensation for producers, expenses associated with higher mortgage banking activity, as well as investments in technology.

During the six month period ended June 30, 2016, we recorded a tax expense of $1.580 million, equating to an effective tax rate of 31.4%. We recorded tax expense of $2.589 million during the six month period ended June 30, 2015, which resulted in an effective tax rate of 32.0%.

Preferred stock costs were $0 in the first six months of 2016 due to the redemption of the preferred stock in the fourth quarter of 2015, versus $949 thousand in the first half of 2015.

Net income available to common shareholders was $3.450 million, or $0.98 per diluted share, for the six months ended June 30, 2016. Net income available to common shareholders in the first six months of 2015 was $4.552 million, or $1.30 per diluted share after accounting for dividends paid on preferred stock.

Assets, Liabilities and Equity

Total assets were $927.0 million at June 30, 2016, an increase of $22.8 million, or 2.5%, compared to $904.2 million at December 31, 2015.  Loans held for investment aggregated $399.7 million at June 30, 2016, an increase of $19.8 million, or 5.2% since December 31, 2015.  In addition, mortgage loans held for sale as of June 30, 2016 were up $8.7 million from December 31, 2015 as mortgage volume continues to remain strong.  Investment balances remained relatively unchanged from year-end 2015.

Total deposits were $757.0 million at June 30, 2016, a decrease of $23.4 million from $780.4 million at 2015 year-end. We exercised our right to call $18.8 million of brokered deposits in the first quarter of 2016. As a result, core deposit balances of $756.5 million at June 30, 2016 decreased only $4.4 million, or 0.6%, from $760.9 million at December 31, 2015. The Company has utilized Federal Home Loan Bank short term advances with an average cost of 0.48% to fund loan growth.

The table below shows changes in total deposits since 2012:

Trust assets under management or administration increased to $263.1 million at June 30, 2016, compared to $248.4 million at December 31, 2015.

Capital

Banks and bank holding companies operate under separate regulatory capital requirements.

At June 30, 2016, our capital ratios exceeded all regulatory capital thresholds and maintained sufficient capital conservation buffers to avoid limitations on certain types of capital distributions.

A summary of our capital ratios at June 30, 2016 and December 31, 2015 are presented below:

		June 30, 2016		December 31, 2015
BNCCORP, INC (Consolidated)
Tier 1 leverage		9.07%		9.00%
Total risk based capital		19.48% Werbung Mehr Nachrichten zur BNC Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 02:00 - PR Newswire FirstGroup Plc - Transaction in Own Shares 24.04.24 - PR Newswire Capital Gearing Trust Plc - Transaction in Own Shares 24.04.24 - PR Newswire Fidelity Special Values Plc - Monthly Factsheet SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59