BNCCORP has a more colorful recent past than Hingham, having been subject to fraud, insurer litigation, and preposterous capital raising plans. With all that now behind, we find today’s BNCCORP producing strong returns on assets and equity.
As of 12/31/13, BNCCORP had a book value per common share of $14.45, and it produced a return on average assets and equity of 1.07% and 15.15%, respectively, through the year 2013. For that performance, today’s buyer is willing to pay $13.14 per share, or roughly, .9x BV.
From my seat, the most impressive aspects of 2013′s performance were BNCCORP’s declining non-interest expense (down 10% in Q4 YoY) and strong non-interest income (despite the headwinds in mortgage banking). The most obvious negatives were their relatively small loan book (351m in total loans at 12/31/13, vs. 436m in securities), and the fact that they haven’t yet redeemed their preferred stock and/or subordinated debt.
Disclosure: I am long shares of BNCC.