#United States #Financial Services #BNCCORP #Bismarck

BNCCorp Reports Financial Performance for Q2 2025

BNCCorp, Inc. (OTCQX: BNCC), based in Bismarck, North Dakota, reported a robust financial performance for the second quarter ending June 30, 2025. This quarter saw a significant increase in net income, reaching $2.2 million, equivalent to $0.62 per diluted share. This marks a $324 thousand or 17.4% rise when compared to the second quarter of 2024 when net income was $1.9 million, or $0.53 per diluted share.

The company’s president and CEO, Daniel J. Collins, noted that the demand for loans remained strong, resulting in a 5.7% increase in loans held for investment, totaling $739.2 million by the end of the second quarter. This loan growth contributes positively to the overall health of the company, reinforcing its position in the community banking and wealth management sphere, particularly in North Dakota and Arizona.

Key Financial Highlights

• - Return on Assets: There was a noticeable improvement in the return on average assets, increasing to 0.92% from 0.73% in the first quarter of 2025 and from 0.82% in Q2 2024.
• - Net Interest Margin: The net interest margin rose to 3.75%, compared to 3.42% in the previous quarter and 3.54% in the same quarter last year. This improvement suggests successful strategies in managing interest income, even in a challenging interest rate environment.
• - Efficiency Ratio: The efficiency ratio improved, indicating better cost management, with the current quarter's figure at 68.83%, up from 72.86% in Q2 2024.

The company’s ability to attract deposits has also been notable. As of June 30, total deposits were recorded at $821.1 million, showing a slight decrease from $837.5 million at the end of December 2024. A shift in deposits may reflect transient customer preferences influenced by market changes.

Detailed Insights into Performance

In comparing Q2 2025 to Q2 2024, BNCCorp's interest income notably increased by $1.3 million or 11.4%, driven by superior loan origination and higher balances of cash and cash equivalents. The bank's non-interest income was slightly lower than the previous year, recorded at $1.4 million, attributed mainly to reduced service fees.

The company reported an increase in non-interest expenses to $6.8 million, primarily due to rising costs in professional services and employee benefits. Collins indicated that while there has been a slight uptick in expenses, it is largely due to strategic investments in services that strengthen the company's operational backbone.

Risk Management and Asset Quality

As of June 30, the allowance for credit losses decreased to 1.24% of loans held for investment, which reflects prudent risk management within a favorable economic context. Despite minor fluctuations in nonperforming assets, the company's overall credit quality remains stable, thanks in part to its diversified loan portfolio.

BNC's geographic concentration remains robust, with 54% of loans located in North Dakota and 24% in Arizona. While the potential for industry-specific risks exists, particularly within the energy and agriculture sectors in North Dakota, the CEO expressed confidence in the company's diversified portfolio mitigating these risks.

Conclusion

BNCCorp, Inc. is positioned for long-term growth, as evidenced by its strategic initiatives and solid financial performance in the second quarter of 2025. The management’s efforts during this period highlight their commitment to not only achieving current operational goals but also laying the groundwork for sustained success in the competitive financial services landscape. The upcoming months promise to be vital as BNCCorp navigates through market dynamics while continuing to serve its community-focused mission effectively.