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BNCCORP, INC. Reports First Quarter Earnings for 2025

BNCCORP, INC., a financial institution based in Bismarck, North Dakota, has released its results for the first quarter of 2025, reporting significant improvements over the same period last year. The company noted a net income rise to $1.8 million, translating to $0.50 per diluted share, compared to $1.7 million or $0.49 per diluted share a year earlier.

Key Highlights of the Earnings Report

The first quarter of 2025 brought about a modest increase in net income by $24,000, which reflects a 1.4% growth from the previous year. This stability is further emphasized by the consistency in the company’s efficiency ratio, which stood at 73.95%, slightly up from 73.50% in Q1 2024. Notably, the yield on loans held for investment improved significantly, reaching 5.78%, up from the previous year's 5.51%.

The figures indicate positive trends within the company’s lending practices, as the total loans held for investment rose to $699.3 million, representing a $542,000 increase since the end of December 2024. Additionally, this is a notable rise of $21.4 million from March 2024, which is a 3.2% year-over-year growth.

A decline in the ratio of loans held for investment to deposits was recorded, decreasing to 82.4% by March 31, 2025, compared to 83.4% at the end of December 2024. Furthermore, the allowance for credit losses grew to 1.33% of loans held for investment.

Management Commentary

Daniel J. Collins, President and CEO of BNCCORP, provided insights into the results: “Our first-quarter results showcase the consistency and resilience of our strategies,” he stated. Despite facing economic uncertainties and competitive pressures impacting deposit costs, BNCCORP managed to maintain stable earnings and uphold robust capital and liquidity levels.

Collins expressed satisfaction with the improved loan yields and acknowledged the contribution of deposit growth towards the modest increase in total available funding. “We remain dedicated to our strategic principles that helped us achieve a strong quarter, which include disciplined lending, cost-effective deposit growth, and meticulous risk management,” he added.

Financial Overview

A deeper dive into the quarterly financials reveals a 2.8% increase in total interest income, which reached $12.0 million, a notable rise from $11.7 million in the prior year’s first quarter. Higher origination yields led to this increase, despite some offset from reductions in yields on cash and cash equivalents.

The company’s consolidated interest expense also saw an increase to $4.1 million, up by $331,000 from Q1 2024, reflecting the rising cost of core deposits. Consequently, the net interest income for Q1 2025 was reported at $7.9 million, a slight reduction of 0.1% from the previous year.

Non-Interest Components and Expense Management

Non-interest income during this quarter totaled $1.4 million, down from $1.5 million in Q1 2024, primarily affected by lower bank charges and service fees due to reduced deposits in specific sale positions. Meanwhile, non-interest expenses decreased by $78,000 year-over-year due to lower data processing fees and other operational expenses, offset partially by a slight rise in employee salaries and benefits.

The company’s effective tax rate remained stable at 23.5% across both reporting periods, reflecting effective tax expense management strategies.

Assets, Liabilities, and Capital Ratios

As of March 31, 2025, BNCCORP, INC. maintained total assets totaling $966.6 million, a marginal drop from the previous quarter. Total deposits experienced a considerable increase, totaling $848.8 million, showing a strong commitment to building deposit relationships.

The bank continues to exceed all regulatory capital thresholds, with a tangible common equity to total assets ratio rising to 10.06% from 9.68% in the prior period. This robust capital position equips BNCCORP to navigate potential market uncertainties effectively.

Conclusion

BNCCORP, INC.'s first quarter results for 2025 are indicative of the bank's steady growth trajectory. By maintaining sound financial management and strong operational principles, the company is well-positioned to face ongoing economic challenges while continuing to build on its success in community banking and wealth management across North Dakota and Arizona.

About BNCCORP, INC.

BNCCORP, INC. operates community banking and wealth management services across North Dakota and Arizona. Headquartered in Bismarck, ND, the company prides itself on meeting local commercial and consumer needs through a network of 11 banking locations.

This report reflects the dedication of BNCCORP, INC. to providing transparent financial information and remains committed to leveraging its expertise to enhance shareholder value.