BISMARCK, N.D., Sept. 20, 2012 /PRNewswire/ -- BNCCORP, INC.
("BNC" or the "Company") (OTC Markets: BNCC), announced today that
it has executed a settlement agreement with its insurers related to
BNC's claim that it had been defrauded. As previously reported in
the second quarter of 2010, BNC discovered fraudulent activity by
an external company that was servicing residential loans on behalf
of BNC. Since that time, the Company has been pursuing a claim
under its fidelity bond with its insurers, and the Company has
agreed to settle its claim for $7.5
million. After reflecting the costs associated with pursuing
and settling the claim, it is expected that BNC's third quarter
pre-tax earnings will include approximately $5,000,000 of income related to this
settlement.
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.