BISMARCK, N.D., Sept. 14, 2012 /PRNewswire/ -- BNCCORP, INC.
("BNC" or the "Company") (OTC Markets: BNCC), today announced the
reversal of a significant portion of the valuation allowance
recorded against its deferred tax assets. The reversal results in
the Company recognizing a tax benefit and was based upon
consideration of a number of factors, including several consecutive
profitable quarters. Concurrently with the reversal of the
valuation allowance, the Company is required to estimate and record
a provision for income tax expense for interim periods in 2012,
which reduces the benefit associated with reversing the valuation
allowance. The initial net impact of reversing the valuation
allowance and estimating interim income tax expense was a net
benefit of approximately $8.8
million.
The amount of income tax expense offsetting the benefit of
reversing the valuation allowance for the remainder of the quarter
is dependent upon pre-tax earnings for the full quarter. Pre-tax
earnings of the Company through the end of the third quarter cannot
be determined until after the end of the quarter. Accordingly, the
estimated net impact of reversing the valuation allowance and
recording income tax expense for the full quarter is not presented
herein.
About the Company
BNCCORP, INC., headquartered in Bismarck, N.D., 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 Arizona, Minnesota and North
Dakota from 15 locations. BNC also conducts mortgage banking
from 12 locations in Illinois,
Kansas, Nebraska, Missouri, Minnesota and Arizona.
Additional Information
This news release may contain "forward-looking statements"
within the meaning 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. 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", "plan",
"intend", "estimate", "may", "will", "would", "could", "should", or
other expressions. We caution readers that these forward-looking
statements, including, without limitation, those relating to our
future business prospects, revenues, working capital, liquidity,
capital needs, interest costs and income, are subject to certain
risks and uncertainties that could cause actual results to differ
materially from those indicated in the forward-looking statements
due to several important factors. These factors include, but are
not limited to: 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, including
the effects of such changes on derivative contracts and associated
accounting consequences; risks associated with our acquisition and
growth strategies; and other risks 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.
SOURCE BNCCORP, INC.