BNCCORP Completes the Sale of its Insurance Agency Business for $37.250 Million
June 01 2007 - 2:44PM
PR Newswire (US)
BISMARCK, N.D., June 1 /PRNewswire-FirstCall/ -- BNCCORP, Inc.
(NASDAQ:BNCC) today announced that it has completed the previously
announced sale of substantially all of the assets of its insurance
agency operation, BNC Insurance Services, Inc., to a subsidiary of
Hub International Limited (NYSE: HBG; TSX: HBG). The purchase price
was $37.250 million in cash. Gregory K. Cleveland, BNCCORP
President and Chief Executive Officer, stated, "We are very pleased
to have completed a transaction that clearly demonstrates our
commitment to enhancing shareholder value. The proceeds of the
insurance unit sale will substantially increase our Company's
tangible net worth and regulatory capital. These increases will
support the continued growth of our banking and wealth management
businesses. The added financial resource may also permit investment
in other potential areas of opportunity. In the short term, we are
confident in our ability to put our expanded financial resources to
work by investing in quality assets that will substantially replace
the earnings capacity of the insurance unit." At the time of the
sale, BNC Insurance operated offices in Arizona, Colorado, Nevada
and North Dakota. 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 21 locations in Arizona,
Minnesota and North Dakota through BNC National Bank and its
subsidiaries. Statements included in this news release which are
not historical in nature are intended to be, and are hereby
identified as "forward-looking statements" for purposes of the safe
harbor provided by Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended. 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. DATASOURCE: BNCCORP, Inc. CONTACT:
Gregory K. Cleveland, +1-602-852-3526, Tracy Scott,
+1-701-250-3040, Timothy J. Franz, +1-612-305-2213, all of BNCCORP,
Inc. Web site: http://www.bnccorp.com/
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