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.