Highlights
- Net income during the third quarter of 2026 increased $387 thousand, or 14.7%, to $3.0 million, or $0.85 per diluted share, from $2.6 million, or $0.74 per diluted share, in the 2025 period. Adjusting for ongoing merger charges increased net income to $3.3 million, or $0.94 per diluted share.
- Return on average assets and equity improved to 1.12% and 10.15%, respectively, in the third quarter of 2026 compared to 1.05% and 9.60%, respectively, in the third quarter of 2025. Adjusting for ongoing merger charges improved return on average assets and equity to 1.24% and 11.23%, respectively.
- Net interest income increased $945 thousand, or 10.7%, to $9.8 million in the third quarter of 2026 from $8.9 million in the third quarter of 2025.
- Net interest margin was 3.83% in the third quarter of 2026 compared to 3.73% in the third quarter of 2025.
- Yield on loans held for investment improved to 6.28% for the third quarter of 2026 compared to 6.11% in the third quarter of 2025.
- Loans held for investment increased $6.2 million, or 0.8%, to $744.9 million at September 30, 2026 from $738.7 million at December 31, 2025, and increased $12.0 million, or 1.6%, from $732.9 million at September 30, 2025. During the third quarter of 2026, loans held for investment increased $14.7 million, or 2.0%, from $730.2 million at June 30, 2026.
- The ratio of loans held for investment-to-deposits increased to 78.4% at September 30, 2026 from 76.0% at December 31, 2025.
- Allowance for credit losses as of September 30, 2026, was 1.16% of loans held for investment compared to 1.18% as of June 30, 2026 and 1.40% as of December 31, 2025.
- Tangible book value per common share increased to $31.68 at September 30, 2026 from $30.26 at December 31, 2025 and $29.44 at September 30, 2025.
BISMARCK, N.D., Oct. 30, 2026 /PRNewswire/ -- BNCCORP, INC. (BNC or the Company) (OTCQX Markets: BNCC), which operates community banking and wealth management businesses in North Dakota and Arizona, today reported financial results for the third quarter ended September 30, 2026.
Management Commentary
"Our third quarter results reflect the continued strength of our core banking franchise," said Daniel J. Collins, BNC's President and Chief Executive Officer. "Net income increased 14.7% from the third quarter of 2025. Net interest income grew 10.7% year-over-year, and our net interest margin of 3.83% was 10 basis points higher than a year ago and essentially unchanged from the second quarter, as higher loan yields and lower deposit costs more than offset lower yields on cash and securities.
"Loans held for investment grew $14.7 million, or 2.0%, and deposits increased $37.7 million during the quarter. We were pleased to see loan growth in the quarter despite an elevated level of payoffs and prepayments in an environment of rising costs and higher interest rates. Our asset quality remains sound and our capital ratios remain well above regulatory requirements.
"The proposed combination with OppFi, announced on April 29, 2026, is proceeding through the customary shareholder and regulatory processes. Our priorities during this period have not changed: serving our customers, supporting our communities and operating the bank with the discipline that produced this quarter's results. We remain confident in the overall quality of our loan portfolio, the strength of our balance sheet and our ability to navigate ongoing economic and geopolitical uncertainties."
2026 Versus 2025 Third Quarter Comparison
The Company reported net income of $3.0 million, or $0.85 per diluted share, for the third quarter of 2026 compared to $2.6 million, or $0.74 per diluted share, in the third quarter of 2025. Excluding the impact of expenses associated with the merger transaction, the Company reported net income of $3.3 million, or $0.94 per diluted share.
Interest income increased $783 thousand, or 5.9%, to $14.1 million in the third quarter of 2026 from $13.4 million in the third quarter of 2025 driven by higher loan yields, a $4.1 million period-over-period increase in the average balance of loans held for investment and higher average balances of cash and cash equivalents. Those increases were partially offset by lower yields on cash and cash equivalents and a lower average balance of debt securities during the quarter. Average yield on interest-earning assets in the quarter decreased slightly to 5.51% from 5.62% in the third quarter of 2025.
Interest expense in the third quarter of 2026 was $4.3 million, a decrease of $162 thousand from the 2025 period. The cost of core deposits in the third quarter of 2026 decreased to 1.75% versus 1.94% in the third quarter of 2025. The average balance of deposits increased by $60.7 million compared to the third quarter of 2025. The cost of interest-bearing liabilities was 2.24% during the third quarter of 2026, compared to 2.49% in the same period of 2025.
Net interest income for the third quarter of 2026 was $9.8 million, an increase of $945 thousand, or 10.7%, from the third quarter of 2025. Net interest margin increased to 3.83% in the third quarter of 2026 compared to 3.73% reported in the prior year period.
Non-interest income during the third quarter of 2026 was $1.6 million, compared to $1.4 million in the 2025 third quarter. Bank charges and service fees were $16 thousand lower period-over-period primarily due to lower overdraft fees and letter of credit fees partially offset by higher interchange income. Wealth management revenues increased by $113 thousand, or 21.2%, over the prior year period as the Company has benefitted from the addition of new assets under administration and increases in the market value of financial assets year-over-year. Other income was $96 thousand higher than the prior year period as a result of valuation adjustments on deferred compensation, gains on sale of assets and higher SBIC revenue.
Non-interest expense during the third quarter of 2026 increased $743 thousand, or 11.2%, year-over-year, primarily due to a $495 thousand increase in professional services as the Company incurred $461 thousand of expenses in connection with the previously announced agreement to be acquired by OppFi Inc. Data processing fees increased $101 thousand. Inflationary factors over core banking services, card processing charges and higher IT subscriptions drove the largest increases. Occupancy expense increased $52 thousand primarily due to increased building repair and maintenance charges.
In the third quarter of 2026, income tax expense was $902 thousand, compared to $809 thousand in the third quarter of 2025. The Company's effective tax rate was 23.0% and 23.5% for the third quarter of 2026 and 2025, respectively.
Tangible book value per common share on September 30, 2026 was $31.68 compared to $30.26 at December 31, 2025. The Company's tangible common equity capital ratio increased to 10.30% as of September 30, 2026, compared to 9.68% on December 31, 2025.
2026 Versus 2025 First Nine Months Comparison
The Company reported net income of $7.1 million, or $2.00 per diluted share, for the first nine months of 2026 compared to $6.6 million, or $1.86 per diluted share, in the first nine months of 2025. Excluding the impact of expenses associated with the merger transaction, the Company reported net income of $8.9 million, or $2.52 per diluted share.
Interest income increased $3.7 million, or 9.8%, to $41.6 million in the first nine months of 2026 from $37.9 million in the first nine months of 2025 driven by a $20.4 million period-over-period increase in the average balance of loans held for investment and higher balances of cash and cash equivalents. Those increases were partially offset by lower yields on cash and cash equivalents and a lower average balance and yields on debt securities during the current period. Average yield on interest-earning assets in the first nine months of 2026 was 5.47%, compared to 5.51% in the first nine months of 2025.
Interest expense in the first nine months of 2026 was $13.1 million, an increase of $391 thousand from the 2025 period. The cost of core deposits in the first nine months of 2026 decreased to 1.79% versus 1.89% in the first nine months of 2025. The average balance of deposits increased by $84.0 million compared to the first nine months of 2025. The cost of interest-bearing liabilities was 2.27% during the first nine months of 2026, compared to 2.44% in the same period of 2025.
Net interest income for the first nine months of 2026 was $28.5 million, an increase of $3.3 million, or 13.2%, from the first nine months of 2025. Net interest margin was 3.75% in the 2026 nine-month period compared to 3.66% reported in the prior year period.
Non-interest income in the first nine months of 2026 was $4.5 million compared to $4.2 million in the 2025 first nine months. Bank charges and service fees were $42 thousand higher period-over-period primarily due to higher servicing income, interchange income, and letter of credit fees that were partially offset by lower non-use fees on lines of credit and a reduction in deposits held in one-way sell positions. Wealth management revenues increased by $267 thousand, or 17.3%, as the Company has benefited from the addition of new assets under administration and increases in the market value of financial assets year-over-year. Other income was higher than the prior year due to valuation adjustments on deferred compensation and higher SBIC and BOLI revenue that was partially offset by lower gains on sale of assets.
Non-interest expense during the first nine months of 2026 increased $2.9 million, or 14.2%, year-over-year, primarily due to a $2.7 million increase in professional services expense as the Company has incurred expenses primarily related to the previously announced agreement to be acquired by OppFi Inc. The Company also reported an increase of $289 thousand in data processing fees. Core banking services, card processing charges and higher IT subscriptions provided the largest increases. These increases were offset by a decrease in salary and employee benefits of $250 thousand, or 2.1% year-over-year. Merit-based and inflationary increases in salaries and employee benefits were offset by lower headcount.
During the nine-month period ended September 30, 2026, consolidated income tax expense was $2.1 million, compared to $2.0 million in the first nine months of 2025. The Company's effective tax rate was 23.0% and 23.5% for the first nine months of 2026 and 2025, respectively.
Assets and Liabilities
Total assets were $1.08 billion at September 30, 2026 versus $1.10 billion at December 31, 2025. Total loans held for investment increased to $744.9 million on September 30, 2026 compared to $738.7 million on December 31, 2025. Debt securities decreased $21.9 million from year-end 2025, primarily due to normal maturities and amortization coupled with an increase in unrealized losses as a result of increases in long term interest rates, while cash and cash equivalent balances totaled $206.9 million on September 30, 2026 compared to $211.5 million on December 31, 2025.
Total deposits decreased $22.2 million, or 2.3%, to $949.6 million as of September 30, 2026, from a balance of $971.8 million on December 31, 2025. The Company remains committed to cultivating new deposit relationships and prioritizing liquidity.
The following table provides additional detail on the Company's total deposit relationships:
As of
(In thousands) September 30, December 31, September 30,
2026 2025 2025
Deposits:
Non-interest-bearing $
178,423 $
177,618 $
178,027
Interest-bearing -
Savings, interest checking and money market 649,715 681,350 591,166
Time deposits 121,459 112,833 109,342
Total on balance sheet deposits 949,597 971,801 878,535
Off-balance sheet deposits (1) 20,478
Total available deposits $
949,597 $
971,801 $
899,013
(1) The off-balance sheet deposits above do not include off-balance sheet time deposits that can be brought back on the balance sheet
at various future maturity dates. As of September 30, 2026, the Company managed off-balance sheet time deposit balances of $260
thousand, compared to $250 thousand time deposit balances as of December 31, 2025 and $250 thousand time deposit balances as of
September 30, 2025
The Company remains highly focused on meeting the needs of its customers and ensuring deposit rates reflect changing market conditions. The Company estimates that deposit insurance and other deposit protection programs secure approximately 70% of its customers' deposit balances. This fact, combined with the Company's strong balance sheet and management's sustained focus on fostering a relationship-focused culture, has allowed the Company to maintain a significant deposit base.
Trust assets under administration increased 11.0%, or $53.0 million, to $534.0 million at September 30, 2026, from $480.9 million at December 31, 2025. The Company has benefited from the addition of new assets under administration in 2026, and increases in the market value of financial assets under administration attributable to increases in the broader financial markets.
Asset Quality
The allowance for credit losses on loans was $8.6 million as of September 30, 2026, versus $10.3 million on December 31, 2025. The allowance for credit losses on loans as a percentage of loans held for investment on September 30, 2026 decreased to 1.16% from 1.40% as of December 31, 2025. The decrease in the allowance to loans ratio was largely due to write-downs of specific problem credits during the first quarter of 2026 that had specific reserves as of year-end 2025.
Past due loans of 31-89 days decreased to $303 thousand as of September 30, 2026, compared to $664 thousand as of December 31, 2025. Nonperforming assets were $5.8 million on September 30, 2026, compared to $9.2 million on December 31, 2025. The ratio of nonperforming assets-to-total-assets was 0.54% at September 30, 2026 compared to 0.83% as of December 31, 2025. As of September 30, 2026, $4.3 million, or 74%, of the $5.8 million in nonperforming assets were SBA loans supported by material government guarantees. Excluding loan balances covered by government guarantees, the Company's nonperforming assets-to-total-assets ratio was 0.21% on September 30, 2026.
The Company continues to monitor the evolving macroeconomic and geopolitical environment for possible impacts to its loan portfolio. As of September 30, 2026, classified loans increased to $7.7 million from $5.7 million as of December 31, 2025. During 2026, the Company experienced an increase in classified loans relating to two well collateralized commercial real estate properties. As of September 30, 2026 and December 31, 2025, the Company had $957 thousand and $5.4 million, respectively, of potentially problematic loans, which are risk-rated as "special mention."
BNC's loans held for investment are geographically concentrated in North Dakota and Arizona, comprising 53% and 25%, respectively, of the Company's total loans held for investment portfolio.
The North Dakota economy is influenced by the energy and agriculture industries. Changes in energy supply and demand, along with market sentiment have recently caused an increase in oil prices. Management continues to monitor the volatility in oil prices and the potential impact on the oil industry and ancillary services. Persistently low agricultural commodity prices have the potential to negatively impact the agricultural performance in North Dakota. Potential risks to North Dakota's energy and agriculture industries include the possibility of adverse national legislation, persistent inflation, potential effects of trade policy, and changes in economic conditions. Depending on the severity of their impact, these factors could present potential challenges to credit quality in North Dakota.
The Arizona economy continues to diversify but is still influenced by the leisure and travel industries. Positive trends in both industries have been noted, but an extended slowdown in these industries may negatively impact credit quality in Arizona. While the Company's portfolio includes various sized loans spread over a large number of industry sectors, it has meaningful concentrations of loans to the hospitality and commercial real estate industries.
The following table approximates the Company's loan concentrations by industry:
(In thousands) September 30, 2026 December 31, 2025
Non-owner Occupied Commercial Real estate - not $
204,697 28 $
200,887 27
% %
otherwise categorized
Consumer, not otherwise categorized 97,460 13 94,999 13
Hotels 86,757 12 97,337 13
Healthcare and social assistance 38,306 5 37,270 5
Agriculture, forestry, fishing and hunting 36,460 5 37,328 5
Mining, oil and gas extraction 30,991 4 21,495 3
Non-hotel accommodation and food service 30,852 4 28,469 4
Retail trade 30,473 4 30,110 4
Art, entertainment and recreation 27,272 4 27,821 4
Construction contractors 24,918 3 24,178 3
Manufacturing 23,208 3 20,127 3
Transportation and warehousing 21,789 3 27,329 4
Real estate and rental and leasing support services 19,362 2 15,245 2
Other service 16,012 2 15,372 2
Utilities 14,194 2 14,510 2
Professional, scientific, and technical services 11,364 2 11,406 2
Educational services 9,920 1 10,932 1
Finance and insurance 7,820 1 8,573 1
Public administration 5,903 1 6,440 1
All other 6,521 1 8,268 1
Total gross loans held for investment $
744,279 100 $
738,096 100
% %
Capital
Banks and bank holding companies operate under separate regulatory capital requirements. As of September 30, 2026, the Company's capital ratios exceeded all regulatory capital thresholds, including the capital conservation buffer.
A summary of the Company's and the Bank's capital ratios is presented below:
September 30, December 31,
2026 2025
BNCCORP, INC. (Consolidated)
Tier 1 leverage 12.61 % 12.40 %
Common equity tier 1 risk based capital 13.43 % 13.01 %
Tier 1 risk based capital 15.18 % 14.81 %
Total risk based capital 16.16 % 16.02 %
Tangible common equity 10.30 % 9.68 %
BNC National Bank
Tier 1 leverage 12.17 % 11.71 %
Common equity tier 1 risk based capital 14.65 % 13.98 %
Tier 1 risk based capital 14.65 % 13.98 %
Total risk based capital 15.64 % 15.19 %
Tangible common equity 11.34 % 10.47 %
The Common Equity Tier 1 ratio, which is generally a comparison of a bank's core equity capital to its total risk weighted assets, is a measure of the current risk profile of the Bank's asset base from a regulatory perspective. The Tier 1 leverage ratio, which is based on average assets, does not consider the mix of risk-weighted assets.
The Company regularly evaluates the sufficiency of its capital to ensure compliance with regulatory capital standards and to serve as a source of strength for the Bank. The Company manages capital by assessing the composition of capital and the amounts available for growth, risk, or other purposes.
The Company made an election at the adoption of BASEL III to exclude changes in accumulated other comprehensive income from the calculation of regulatory ratios.
Share Repurchases
In December 2020, the Company's Board of Directors approved a share repurchase program authorizing the repurchase of up to 175,000 shares of BNCCORP, INC. outstanding common stock. During the first quarter of 2024, the Company repurchased 50,000 shares of common stock for a total cost of $1.2 million, or approximately $23.25 per share. The Company has made no other share repurchases of common stock. As of September 30, 2026, there were 125,000 shares remaining under the current authorized share repurchase program.
About BNCCORP, INC.
BNCCORP, INC., headquartered in Bismarck, ND, 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 North Dakota and Arizona from 11 locations.
This news release may contain "forward-looking statements" within the meaning of the safe harbor provisions 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 as well as with respect to OppFi Inc.'s pending acquisition 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", "at the present time", "plan", "optimistic", "intend", "estimate", "may", "will", "would", "could", "should", "future" and other expressions relating to future periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations regarding future market conditions and our ability to capture opportunities and pursue growth strategies, our expected operating results such as revenue growth and earnings and our expectations of the effects of the regulatory environment or future pandemics on our earnings for the foreseeable future. Forward-looking statements are neither historical facts nor assurances of future performance. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, but are not limited to: the impact of current and future regulation; the 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; risks associated with our acquisition and growth strategies; and other risks, including the potential impact of the imposition of tariffs or retaliatory tariffs, 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.
This press release contains references to financial measures, which are not defined in GAAP. Such non-GAAP financial measures include tangible common equity to total period end assets ratio. These non-GAAP financial measures have been included as the Company believes they are helpful for investors to analyze and evaluate the Company's financial condition.
(Financial tables attached)
BNCCORP, INC.
CONSOLIDATED FINANCIAL DATA
(Unaudited)
For the Quarter For the Nine Months
Ended September 30, Ended September 30,
(In thousands, except per share data) 2026 2025 2026 2025
INCOME STATEMENT
Interest income $
14,145 $
13,362 $
41,599 $
37,896
Interest expense 4,331 4,493 13,115 12,724
Net interest income 9,814 8,869 28,484 25,172
Provision for credit losses 80 165 590 490
Net interest income after provision for credit 9,734 8,704 27,894 24,682
losses
Non-interest income
Bank charges and service fees 697 713 2,109 2,067
Wealth management revenues 647 534 1,814 1,547
Gains on sales of loans, net 3 3 13 116
Other 233 137 535 471
Total non-interest income 1,580 1,387 4,471 4,201
Non-interest expense
Salaries and employee benefits 3,781 3,760 11,466 11,716
Professional services 863 368 3,700 1,021
Data processing fees 975 874 2,834 2,545
Marketing and promotion 225 243 588 607
Occupancy 399 347 1,216 1,152
Regulatory costs 146 136 414 401
Depreciation and amortization 272 271 808 815
Office supplies and postage 96 86 297 282
Other 635 564 1,834 1,741
Total non-interest expense 7,392 6,649 23,157 20,280
Income before taxes 3,922 3,442 9,208 8,603
Income tax expense 902 809 2,118 2,022
Net income $
3,020 $
2,633 $
7,090 $
6,581
WEIGHTED AVERAGE SHARES
Common shares outstanding (a) 3,544,274 3,541,774 3,543,450 3,541,215
Dilutive effect of share-based compensation 1,401 1,174
Adjusted weighted average shares (b) 3,544,274 3,543,175 3,543,450 3,542,389
EARNINGS PER SHARE DATA
Basic earnings per common share $
0.85 $
0.74 $
2.00 $
1.86
Diluted earnings per common share $
0.85 $
0.74 $
2.00 $
1.86
(a) Denominator for basic earnings per common
share
(b) Denominator for diluted earnings per
common share
BNCCORP, INC.
CONSOLIDATED FINANCIAL DATA
(Unaudited)
As of
(In thousands, except share, per-share and full-time September 30, December 31, September 30,
equivalent data)
2026 2025 2025
BALANCE SHEET DATA
Cash and cash equivalents $
206,931 $
211,451 $
115,611
Debt securities available for sale 92,803 114,670 118,415
FRB and FHLB stock 2,466 2,386 2,386
Loans held for investment 744,878 738,700 732,833
Allowance for credit losses (8,636) (10,318) (9,313)
Net loans held for investment 736,242 728,382 723,520
Premises and equipment, net 10,018 10,120 10,312
Operating lease right of use asset 415 514 607
Accrued interest receivable 4,273 4,395 4,444
Other 30,024 28,288 28,182
Total assets $
1,083,172 $
1,100,206 $
1,003,477
Deposits:
Non-interest-bearing $
178,423 $
177,618 $
178,027
Interest-bearing -
Savings, interest checking and money market 649,715 681,350 591,166
Time deposits 121,459 112,833 109,342
Total deposits 949,597 971,801 878,535
Guaranteed preferred beneficial interest in Company's 15,464 15,464 15,464
subordinated debentures
Accrued interest payable 1,423 1,638 1,611
Accrued expenses 2,803 2,877 2,455
Operating lease liabilities 444 571 673
Other 1,855 1,348 1,002
Total liabilities 971,586 993,699 899,740
Common stock 37 37 37
Capital surplus - common stock 27,337 27,230 27,150
Retained earnings 94,528 87,438 85,248
Treasury stock (2,723) (2,753) (2,666)
Accumulated other comprehensive income, net (7,593) (5,445) (6,032)
Total stockholders' equity 111,586 106,507 103,737
Total liabilities and stockholders' equity $
1,083,172 $
1,100,206 $
1,003,477
OTHER SELECTED DATA
Trust assets under administration $
533,952 $
480,944 $
467,677
Core deposits (1) $
949,597 $
971,801 $
878,535
Tangible book value per common share (2) $
31.68 $
30.26 $
29.44
Tangible book value per common share excluding $
33.83 $
31.80 $
31.15
accumulated other comprehensive income, net
Full time equivalent employees 126 132 135
Common shares outstanding 3,522,625 3,520,125 3,523,875
(1)
Core deposits consist of all deposits with customers.
(2) Tangible book value per common share is equal to book value per
common share.
BNCCORP, INC.
CONSOLIDATED FINANCIAL DATA
(Unaudited)
AVERAGE BALANCE, For the Quarter Ended For the Quarter Ended Quarter-Over-Quarter
YIELD EARNED, AND
COST PAID September 30, 2026 September 30, 2025
Comparison
(dollars in thousands) Average Interest Average Average Interest Average Change Due to
Balance Earned Yield or Balance Earned Yield or
or Paid Cost or Paid Cost
Rate Volume Total
Assets
Interest-bearing due from $
181,808 $
1,679 3.66 % $
95,483 $
1,062 4.41 % $
(206) $
823 $
617
banks
FRB and FHLB stock 2,466 40 6.44 % 2,386 37 6.15 % 1 2 3
Debt securities AFS 102,461 723 2.80 % 119,686 934 3.10 % (84) (127) (211)
Loans held for investment 739,708 11,703 6.28 % 735,614 11,329 6.11 % 313 61 374
Allowance for credit (8,603) 0.00 % (9,174) 0.00 %
losses
Total $
1,017,840 $
14,145 5.51 % $
943,995 $
13,362 5.62 % $
24 $
759 $
783
Liabilities
Interest checking and $
589,877 $
3,149 2.12 % $
551,712 $
3,317 2.39 % $
(424) $
256 $
(168)
money market
Savings 41,385 11 0.10 % 41,073 11 0.11 %
Time deposits 119,852 964 3.19 % 106,400 938 3.50 % (86) 112 26
Short-term borrowings 0.00 % 3 4.98 %
Subordinated debentures 15,464 207 5.30 % 15,464 227 5.82 % (20) (20)
Total $
766,578 $
4,331 2.24 % $
714,652 $
4,493 2.49 % $
(530) $
368 $
(162)
Net Interest Income $
9,814 $
8,869
Net Interest Spread 3.27 % 3.12 %
Net Interest Margin 3.83 % 3.73 %
AVERAGE BALANCE, For the Nine Months Ended For the Nine Months Ended
Nine Month
YIELD EARNED, AND
COST PAID September 30, 2026 September 30, 2025
Comparison
(dollars in thousands) Average Interest Average Average Interest Average Change Due to
Balance Yield or Balance Earned Yield or
Earned Cost or Paid Cost
or Paid
Rate Volume Total
Assets
Interest-bearing due from $
178,241 $
4,912 3.68 % $
86,616 $
2,880 4.45 % $
(566) $
2,598 $
2,032
banks
FRB and FHLB stock 2,441 113 6.19 % 2,386 108 6.05 % 4 1 5
Debt securities AFS 107,949 2,382 2.95 % 124,369 2,901 3.12 % (151) (368) (519)
Loans held for investment 736,054 34,192 6.21 % 715,671 32,007 5.98 % 1,271 914 2,185
Allowance for credit (8,698) 0.00 % (9,204) 0.00 %
losses
Total $
1,015,987 $
41,599 5.47 % $
919,838 $
37,896 5.51 % $
558 $
3,145 $
3,703
Liabilities
Interest checking and $
598,639 $
9,672 2.16 % $
540,249 $
9,423 2.33 % $
(990) $
1,239 $
249
money market
Savings 41,857 33 0.11 % 42,425 33 0.10 %
Time deposits 115,779 2,803 3.24 % 99,914 2,593 3.47 % (185) 395 210
Short-term borrowings 1 6.00 % 3 4.98 %
Subordinated debentures 15,464 607 5.25 % 15,464 675 5.84 % (68) (68)
Total $
771,740 $
13,115 2.27 % $
698,055 $
12,724 2.44 % $
(1,243) $
1,634 $
391
Net Interest Income $
28,484 $
25,172
Net Interest Spread 3.20 % 3.07 %
Net Interest Margin 3.75 % 3.66 %
BNCCORP, INC.
CONSOLIDATED FINANCIAL DATA
(Unaudited)
For the Quarter For the Nine Months
Ended September 30, Ended September 30,
(In thousands) 2026 2025 2026 2025
OTHER AVERAGE BALANCES
Total assets $
1,067,692 $
996,822 $
1,068,363 $
973,191
Core deposits 933,847 873,119 936,571 852,553
Total equity 112,296 101,940 110,137 98,651
KEY RATIOS
Return on average common stockholders' equity (a) 10.15 % 9.60 % 8.19 % 8.26 %
Return on average assets (b) 1.12 % 1.05 % 0.89 % 0.90 %
Efficiency ratio (Consolidated) 64.88 % 64.84 % 70.27 % 69.05 %
Efficiency ratio (Bank) 59.04 % 62.18 % 61.02 % 65.87 %
(a) Return on average common stockholders' equity is calculated by using net income as the numerator and average common equity (less
accumulated other comprehensive income (loss)) as the denominator.
(b)
Return on average assets is calculated by using net income as the numerator and average total assets as the denominator.
As of
(In thousands) September 30, December 31, September 30,
2026 2025 2025
ASSET QUALITY
Loans 90 days or more delinquent and accruing interest
$
$ $
2
Non-accrual loans 5,824 9,169 8,059
Total nonperforming loans $
5,824 $
9,169 $
8,061
Repossessed assets, net
Total nonperforming assets $
5,824 $
9,169 $
8,061
Allowance for credit losses $
8,636 $
10,318 $
9,313
Ratio of total nonperforming loans to total loans 0.78 % 1.24 % 1.10 %
Ratio of total nonperforming assets to total assets 0.54 % 0.83 % 0.80 %
Ratio of nonperforming loans to total assets 0.54 % 0.83 % 0.80 %
Ratio of allowance for credit losses to total loans 1.16 % 1.40 % 1.27 %
Ratio of allowance for credit losses to nonperforming 148 % 113 % 116 %
loans
For the Quarter For the Nine Months
Ended September 30, Ended September 30,
(In thousands) 2026 2025 2026 2025
Changes in Nonperforming Loans:
Balance, beginning of period $
6,113 $
5,788 $
9,169 $
6,275
Additions to nonperforming 101 3,245 889 4,358
Charge-offs (12) (2,257) (417)
Reclassified back to performing (5) (884)
Principal payments received (290) (962) (1,837) (1,160)
Transferred to repossessed assets (50) (5) (102) (111)
Transferred to other real estate owned (38) (38)
Balance, end of period $
5,824 $
8,061 $
5,824 $
8,061
BNCCORP, INC.
CONSOLIDATED FINANCIAL DATA
(Unaudited)
For the Quarter For the Nine Months
Ended September 30, Ended September 30,
(In thousands) 2026 2025 2026 2025
Changes in Allowance for Credit Losses:
Balance, beginning of period $
8,715 $
9,260 $
10,433 $
9,388
Provision 80 165 590 490
Loans charged off (56) (33) (2,358) (497)
Loan recoveries 10 41 84 52
Balance, end of period $
8,749 $
9,433 $
8,749 $
9,433
Components:
Allowance for loan losses $
8,636 $
9,313 $
8,636 $
9,313
Allowance for unfunded commitments $
113 $
120 $
113 $
120
Ratio of net recovery (charge-offs) to average total (0.006) % 0.001 % (0.309) % (0.062) %
loans
Ratio of net recovery (charge-offs) to average total (0.025) % 0.004 % (0.412) % (0.083) %
loans, annualized
As of
(In thousands) September 30, December 31, September 30,
2026 2025 2025
CREDIT CONCENTRATIONS
North Dakota
Commercial and industrial $
88,863 $
79,455 $
78,700
Construction 5,339 2,826 2,920
Agricultural 38,441 39,238 41,224
Land and land development 7,465 8,115 7,864
Owner-occupied commercial real estate 34,665 37,284 38,319
Commercial real estate 108,039 114,009 113,871
Small business administration 20,905 17,581 17,668
Consumer 93,994 92,728 94,851
Subtotal gross loans held for investment $
397,711 $
391,236 $
395,417
Consolidated
Commercial and industrial $
134,065 $
124,595 $
123,184
Construction 19,677 8,955 8,047
Agricultural 41,042 41,931 43,924
Land and land development 7,799 9,601 9,358
Owner-occupied commercial real estate 78,358 84,810 84,693
Commercial real estate 246,543 260,059 250,639
Small business administration 97,438 90,621 91,741
Consumer 119,357 117,524 120,524
Total gross loans held for investment $
744,279 $
738,096 $
732,110
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SOURCE BNCCORP, INC.
FOR FURTHER INFORMATION: WEBSITE: www.bnccorp.com, DANIEL J. COLLINS, CEO, TELEPHONE: (612) 305-2210, JUSTIN C. CURRIE, CFO, TELEPHONE: (701) 250-3042