BNCCORP, INC. Reports First Quarter Net Income Of $2.4 Million, Or $0.68 Per Diluted Share

BISMARCK, N.D., April 27, 2018 /PRNewswire/ —

2018 First Quarter Highlights

Net income in the 2018 first quarter increased 125.8% to $2.4 million compared to $1.1 million in the first quarter of 2017
Net interest income increased by 5.0%, or $327 thousand, in the first quarter of 2018 compared to the first quarter of 2017
Non-interest income increased by 23.9%, or $1.1 million, compared to the 2017 first quarter, driven by higher gains on sales of assets
Non-interest expenses decreased by $90 thousand, or 0.9%, in the first quarter of 2018, versus the same period in 2017
Loans and leases held for investment increased to $435.2 million, rising 5.9% from $410.9 million at March 31, 2017

BNCCORP, INC. (BNC or the Company) (OTCQX Markets: BNCC), which operates community banking and wealth management businesses in North Dakota, Arizona and Minnesota, and has mortgage banking offices in Illinois, Kansas, Missouri, Minnesota, Arizona and North Dakota, today reported financial results for the first quarter ended March 31, 2018.

Net income in the first quarter of 2018 was $2.396 million, compared with $1.061 million in the same period of 2017. First quarter 2018 diluted earnings per share rose to $0.68, compared to $0.30 in the first quarter of 2017. The increase in net income from the year-ago period primarily reflects increases in both net interest income and non-interest income, driven by gains on sales of assets, and relatively stable non-interest expenses.

Net interest income in the 2018 first quarter increased by $327 thousand, or 5.0%, from the same quarter in 2017, due primarily to the growth of loans and leases held for investment and higher yields and balances on investment securities.

Non-interest income in the first quarter of 2018 increased by $1.1 million, or 23.9%, from the same period in 2017, primarily due to higher gains on sales of assets, which increased by $1.3 million.

Non-interest expense in the first quarter of 2018 decreased by $90 thousand, or 0.9%, as higher data processing costs were offset by lower mortgage related expenses.

The provision for credit losses was $0 in the first quarters of 2018 and 2017. The ratio of nonperforming assets to total assets decreased to 0.20% at March 31, 2018, from 0.21% at December 31, 2017. The allowance for loan losses was 1.79% of loans and leases held for investment at March 31, 2018, compared to 1.84% at December 31, 2017.

Book value per common share at March 31, 2018 was $21.87 compared to $22.40 at December 31, 2017. Excluding accumulated other comprehensive (loss) or income, book value per common share at March 31, 2018 was $23.05, compared to $22.38 at December 31, 2017 and $21.29 at March 31, 2017.

Management Comments

Timothy J. Franz, BNC President and Chief Executive Officer, said, “We are pleased with the 125.8% increase in net income in the first quarter of 2018 compared to the first quarter of 2017. Our core banking business is strengthening as net interest income continues to increase due to higher average loan balances. It is noteworthy that our pipeline of loans and leases held for investment increased late in the quarter. We are optimistic that recent rate hikes will continue to positively impact interest income as we have more than $245 million of assets indexed primarily to the Wall Street Journal Prime Rate.”

Mr. Franz continued, “Credit quality metrics remain very good. We are starting to see more economic activity in the North Dakota regions influenced by energy, while we continue to closely monitor conditions that are challenging the agricultural sector. Our people are maintaining close relationships with clients, and are ready to help them take advantage of opportunities. Overall, the first quarter 2018 earnings were significantly improved from early 2017, our capital position is strong, and we are poised to continue creating value as 2018 proceeds.”

First Quarter 2018 Comparison to First Quarter 2017

Net interest income for the first quarter of 2018 was $6.860 million, an increase of $327 thousand, or 5.0%, from $6.533 million in the same period of 2017. Overall, the net interest margin increased to 3.11% in the first quarter of 2018 from 3.09% in the first quarter of 2017.

Interest income increased $702 thousand, or 9.6%, to $8.016 million in the first quarter of 2018, compared to $7.314 million in the first quarter of 2017. This increase is the result of higher balances and yields on taxable investments and higher average balances of loans and leases held for investment. The yield on average interest earning assets was 3.63% in the first quarter of 2018 and 3.45% in the first quarter of 2017. The average balance of interest earning assets increased by $37.0 million. The average balance of loans and leases held for investment increased by $13.9 million, yielding $273 thousand of additional interest income, while the average balance of mortgage loans held for sale was largely unchanged from the same period of 2017. The average balance of investment securities was $31.4 million higher in the first quarter of 2018 than in the first quarter of 2017, yielding $430 thousand in additional interest income. The average balance of cash held at the Federal Reserve decreased by $8.1 million when comparing the two periods, and yielded an additional $8 thousand of interest income in the first quarter of 2018.

Interest expense in the first quarter of 2018 was $1.156 million, an increase of $375 thousand from the same period in 2017. The cost of interest bearing liabilities was 0.66% in the current quarter compared to 0.47% in the same period of 2017. Interest expense increased on deposits, driven largely by increased volume and cost of consumer certificates of deposit and money market accounts. The cost of core deposits in the first quarter of 2018 and 2017 was 0.39% and 0.26%, respectively. The Company paid down FHLB short-term advances outstanding in the first quarter 2018 and, alternatively, obtained $30.0 million of brokered certificates of deposit as a more attractive source of funding than comparable FHLB advances.

Provision for credit losses was $0 in the first quarters of 2018 and 2017.

Non-interest income for the first quarter of 2018 was $5.881 million, an increase of $1.134 million, or 23.9%, from $4.747 million in the first quarter of 2017. Gains on sales of assets $1.269 million higher in the first quarter of 2018 compared to the same period of 2017. Mortgage banking revenues of $2.501 million in the first quarter of 2018 were fundamentally unchanged compared to $2.504 million in the first quarter of 2017.

Non-interest expense for the first quarter of 2018 decreased $90 thousand, to $9.768 million, from $9.858 million in the first quarter of 2017. Salaries and employee benefits expense was flat comparing the first quarters of 2018 and 2017. Professional services expense decreased compared to first quarter of 2017 by $263 thousand, or 25.0%, primarily due to reduced mortgage banking volumes and reduced legal fees. Marketing and promotion expenses increased $149 thousand, or 20.5%, largely attributed to increased competition for mortgage lead generation marketing. Other expense decreased by $58 thousand largely due to mortgage cost reduction efforts.

In the first quarter of 2018, income tax expense was $577 thousand, compared to $361 thousand in the first quarter of 2017. The effective tax rate was 19.4% in the first quarter of 2018, compared to 25.4% in the same period of 2017. The decrease in the effective tax rate is primarily due to the enactment of federal tax legislation effective January 1, 2018 that reduced the federal tax rate to 21%. The impact of the tax rate change was partially offset by the reduction in non-taxable income resulting from the first quarter 2018 sale of certain tax exempt municipal bonds resulting in a $2.1 million gain.

Net income was $2.396 million, or $0.68 per diluted share in the first quarter of 2018. Net income in the first quarter of 2017 was $1.061 million, or $0.30 per diluted share.

Assets, Liabilities and Equity

Total assets were $996.1 million at March 31, 2018, an increase of $50.0 million, or 5.3%, compared to $946.1 million at December 31, 2017. Loans and leases held for investment aggregated $435.2 million at March 31, 2018, an increase of $6.9 million, or 1.6%, since December 31, 2017 and an increase of $24.3 million, or 5.9%, since March 31, 2017. Loans and leases held for sale as of March 31, 2018 were down $12.4 million from December 31, 2017. Investments increased $29.1 million from year-end 2017.

Total deposits were $870.1 million at March 31, 2018, compared to $817.8 million at December 31, 2017. Total deposits include $30.0 million of brokered deposits that were acquired as an attractive alternative relative to comparable FHLB advances. At March 31, 2018, core deposits, which include recurring customer repurchase agreement balances, increased by $22.8 million to $858.7 million, or 2.7%, from $835.8 million as of December 31, 2017. We have grown core deposits steadily in recent periods, but believe certain amounts held in deposit accounts at March 31, 2018 are likely to be temporary increases in core deposits.

The table below shows total deposits since 2014:


		March 31,		December 31,		December 31,		December 31,		December 31,
(In Thousands)		2018		2017		2016		2015		2014

ND Bakken Branches	$	174,804	$	168,981	$	178,677	$	190,670	$	178,565
ND Non-Bakken Branches		450,650		435,255		384,476		388,630		433,129
Total ND Branches		625,454		604,236		563,153		579,300		611,694
Brokered Deposits		30,000		–		–		33,363		53,955
Other		214,647		213,570		189,474		167,786		145,582
Total Deposits	$	870,101	$	817,806	$	752,627	$	780,449	$	811,231

Trust assets under management or administration increased 14.3%, or $40.0 million, to $319.5 million at March 31, 2018, compared to $279.5 million at March 31, 2017 as we have been able to capture wealth generated by commercial customers and convert new customers to BNC’s wealth management services.

Capital

Banks and bank holding companies operate under separate regulatory capital requirements.

At March 31, 2018, our capital ratios exceeded all regulatory capital thresholds, including thresholds that incorporate fully phased-in conservation buffers.

A summary of our capital ratios at March 31, 2018 and December 31, 2017 is presented below:

	March 31, 2018	December 31, 2017
BNCCORP, INC (Consolidated)
Tier 1 leverage	9.97%	9.53%
Total risk based capital	20.38%	19.98%
Common equity tier 1 risk based capital	14.56%	14.15%
Tier 1 risk based capital	17.30%	16.90%
Tangible common equity	7.60%	8.18%

BNC National Bank
Tier 1 leverage	10.09%	9.62%
Total risk based capital	18.77%	18.31%
Common equity tier 1 risk based capital	17.51%	17.06%
Tier 1 risk based capital	17.51%	17.06%

The Common Equity Tier 1 ratio, which is generally a comparison of a bank’s core equity capital to its total risk weighted assets, is a measure of the current risk profile of our asset base from a regulatory perspective. The Tier 1 leverage ratio, which is based on average assets, does not consider the mix of risk-weighted assets. In recent periods, regulators have required Tier 1 leverage ratios that significantly exceed “Well Capitalized” ratio levels. As a result, management believes the Bank’s Tier 1 leverage ratio is our most restrictive capital measurement and we are managing the Tier 1 leverage ratio to levels significantly above the “Well Capitalized” ratio threshold.

In addition to regulatory risk based capital standards, we believe that regulators and investors also monitor the capital ratio of tangible common equity to total period end assets.

The Company routinely evaluates the sufficiency of its capital in order to ensure compliance with regulatory capital standards and to provide a source of strength for the Bank. We manage capital by assessing the composition of capital and the amounts available for growth, risk or other purposes.

Book value per common share of the Company was $21.87 as of March 31, 2018, compared to $22.40 at December 31, 2017. Book value per common share, excluding accumulated other comprehensive (loss) or income, was $23.05 as of March 31, 2018, compared to $22.38 at December 31, 2017 and $21.29 at March 31, 2017.

Asset Quality

The allowance for credit losses was $7.8 million at March 31, 2018, compared to $7.9 million at December 31, 2017. The allowance for credit losses as a percentage of total loans at March 31, 2018 was 1.70%, compared to 1.69% at December 31, 2017. The allowance as a percentage of loans and leases held for investment at March 31, 2018 was 1.79%, and at December 31, 2017 was 1.84%.

Nonperforming assets were $2.0 million at March 31, 2018 and December 31, 2017. The ratio of nonperforming assets to total assets was 0.20% at March 31, 2018 and 0.21% at December 31, 2017. Nonperforming loans were $2.0 million at March 31, 2018 and December 31, 2017.

At March 31, 2018 and December 31, 2017, BNC had $11.0 million of classified loans, $2.0 million of loans on non-accrual, no other real estate owned, and no repossessed assets. BNC had $1.6 million of potentially problematic loans, which are risk rated “watch list”, at March 31, 2018, compared with $1.7 million as of December 31, 2017.

In recent periods, economic activity in western North Dakota was affected by challenging conditions in the agricultural and energy industries. The areas near Dickinson, Williston and Minot were particularly adversely affected by the economic conditions. Agricultural economies in North Dakota are being threatened by drought conditions. While economic conditions are currently improving in regions of North Dakota influenced by energy prices, prolonged periods of lower commodity prices could have an adverse impact on our loan portfolio.

Company Update

Michael O’Rourke retired from the BNCCORP, INC. Board of Directors effective April 1, 2018. Upon Mr. O’Rourke’s retirement, the Board of Directors reduced the size of the Board to five members. Mr. O’Rourke joined the Board in 2008 and during the intervening ten years made significant contributions to the success of the Company. Notably, during Mr. O’Rourke’s tenure as director, the book value per share of BNCCORP, INC. stock nearly doubled between year-end 2009 at $11.24 per share and year-end 2017 at $22.40 per share. The Board of Directors and employees of BNC thank Mr. O’Rourke for the skills and knowledge he brought to BNC and for his dedicated service.

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 North Dakota, Arizona and Minnesota from 15 locations. BNC also conducts mortgage banking from 13 offices in Illinois, Kansas, Missouri, Minnesota, Arizona and North Dakota.

This news release may contain “forward-looking statements” within the meaning of the safe harbor provisions 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”, “future” and other expressions relating to future periods. Examples of forward-looking statements include, among others, statements we make regarding our belief that we have exceptional liquidity, our expectations regarding future market conditions and our ability to capture opportunities and pursue growth strategies, our expected operating results such as revenue growth and earnings and our expectations of the effects of the regulatory environment on our earnings for the foreseeable future. Forward-looking statements are neither historical facts nor assurances of future performance. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, but are not limited to: the impact of current and future regulation; the 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 mortgage banking revenues and 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.

This press release contains references to financial measures which are not defined in GAAP. Such non-GAAP financial measures include adjusted earnings, adjusted earnings per share, which exclude the impact of items related to tax reform, and the tangible common equity to total period end assets ratio. These non-GAAP financial measures have been included as the Company believes they are helpful for investors to analyze and evaluate the Company’s financial condition.

(Financial tables attached)

BNCCORP, INC.
CONSOLIDATED FINANCIAL DATA
(Unaudited)

	For the Quarter Ended,
(In thousands, except per share data)	March 31, 2018		December 31, 2017		March 31, 2017
SELECTED INCOME STATEMENT DATA
Interest income	$	8,016	$	8,009	$	7,314
Interest expense		1,156		973		781
Net interest income		6,860		7,036		6,533
Provision for credit losses		–		100		–
Non-interest income		5,881		4,415		4,747
Non-interest expense		9,768		9,551		9,858
Income before income taxes		2,973		1,800		1,422
Income tax expense		577		1,471		361
Net income (GAAP)		2,396		329		1,061

Revaluation of net deferred tax assets		–		1,208		–
Losses on sales of securities sold, net of tax		–		307		–

Adjusted Earnings (non-GAAP) (1)	$	2,396	$	1,844	$	1,061
EARNINGS PER SHARE DATA
Basic earnings per common share	$	0.69	$	0.09	$	0.31
Diluted earnings per common share	$	0.68	$	0.09	$	0.30

ADJUSTED EARNINGS PER SHARE DATA (1)
Basic earnings per common share (non-GAAP)	$	0.69	$	0.53	$	0.31
Diluted earnings per common share (non-GAAP)	$	0.68	$	0.52	$	0.30


(1)	Adjusted earnings, a non-GAAP measure, is provided for the December 31, 2017 results in addition to reported results prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) in order to present financial information without the impact of actions linked to federal tax legislation effective January 1, 2018.

BNCCORP, INC.
CONSOLIDATED FINANCIAL DATA
(Unaudited)

	For the Quarter Ended
(In thousands, except share data)	March 31, 2018		December 31, 2017		March 31, 2017
ANALYSIS OF NON-INTEREST INCOME
Bank charges and service fees	$	652	$	683	$	688
Wealth management revenues		477		421		461
Mortgage banking revenues		2,501		2,663		2,504
Gains on sales of loans, net		3		41		543
Gains (losses) on sales of investments, net		2,079		(495)		270
Other		169		1,102		281
Total non-interest income	$	5,881	$	4,415	$	4,747
ANALYSIS OF NON-INTEREST EXPENSE
Salaries and employee benefits	$	5,230	$	5,091	$	5,239
Professional services		790		799		1,053
Data processing fees		997		926		880
Marketing and promotion		875		885		726
Occupancy		585		649		620
Regulatory costs		140		157		132
Depreciation and amortization		406		412		400
Office supplies and postage		164		147		167
Other real estate costs		–		(10)		2
Other		581		495		639
Total non-interest expense	$	9,768	$	9,551	$	9,858
WEIGHTED AVERAGE SHARES
Common shares outstanding (a)		3,487,155		3,482,527		3,472,401
Incremental shares from assumed conversion of options and contingent shares		60,272		61,682		68,845
Adjusted weighted average shares (b)		3,547,427		3,544,209		3,541,246


(a)	Denominator for basic earnings per common share
(b)	Denominator for diluted earnings per common share

BNCCORP, INC.
CONSOLIDATED FINANCIAL DATA
(Unaudited)

	As of
(In thousands, except share, per share and full time equivalent data)	March 31, 2018		December 31, 2017		March 31, 2017
SELECTED BALANCE SHEET DATA
Total assets	$	996,111	$	946,150	$	1,008,491
Loans held for sale-mortgage banking		24,159		36,601		26,050
Loans and leases held for investment		435,224		428,325		410,881
Total loans		459,383		464,926		436,931
Allowance for credit losses		(7,811)		(7,861)		(8,040)
Investment securities available for sale		441,020		411,917		420,316
Other real estate, net and repossessed assets		–		–		214
Earning assets		939,962		886,212		952,062
Total deposits		870,101		817,806		887,600
Core deposits (1)		858,661		835,850		901,417
Other borrowings		43,570		43,054		38,831
Cash and cash equivalents		51,505		25,830		107,876
OTHER SELECTED DATA
Net unrealized (losses) gains in accumulated other comprehensive income	$	(4,091)	$	48	$	1,917
Trust assets under supervision	$	319,525	$	321,274	$	279,489
Total common stockholders’ equity	$	75,925	$	77,626	$	75,512
Book value per common share	$	21.87	$	22.40	$	21.84
Book value per common share excluding accumulated other comprehensive income, net	$	23.05	$	22.38	$	21.29
Full time equivalent employees		250		252		286
Common shares outstanding		3,471,992		3,465,992		3,456,860
CAPITAL RATIOS
Common equity Tier 1 risk-based capital (Consolidated)		14.56%		14.15%		14.05%
Tier 1 leverage (Consolidated)		9.97%		9.53%		9.59%
Tier 1 risk-based capital (Consolidated)		17.30%		16.90%		16.96%
Total risk-based capital (Consolidated)		20.38%		19.98%		20.14%
Tangible common equity (Consolidated)		7.60%		8.18%		7.46%

Common equity Tier 1 risk-based capital (Bank)		17.51%		17.06%		17.53%
Tier 1 leverage (Bank)		10.09%		9.62%		9.92%
Tier 1 risk-based capital (Bank)		17.51%		17.06%		17.53%
Total risk-based capital (Bank)		18.77%		18.31%		18.78%
Tangible common equity (Bank)		9.27%		9.91%		9.21%


(1)	Core deposits consist of all deposits and repurchase agreements with customers and exclude certain brokered certificates of deposit.

BNCCORP, INC.
CONSOLIDATED FINANCIAL DATA
(Unaudited)

	For the Quarter Ended March 31,
(In thousands)		2018		2017
AVERAGE BALANCES
Total assets	$	951,610	$	913,756
Loans held for sale-mortgage banking		23,742		24,233
Loans and leases held for investment		430,048		416,138
Total loans		453,790		440,371
Investment securities available for sale		431,228		399,821
Earning assets		894,224		857,228
Total deposits		819,941		788,047
Core deposits		822,398		800,036
Total equity		77,369		74,599
Cash and cash equivalents		22,792		30,562
KEY RATIOS
Return on average common stockholders’ equity (a)		12.25%		5.88%
Return on average assets (b)		1.02%		0.47%
Net interest margin		3.11%		3.09%
Efficiency ratio		76.66%		87.40%
Efficiency ratio (BNC Bank)		73.41%		83.69%


(a)	Return on average common stockholders’ equity is calculated by using net income as the numerator and average common equity (less accumulated other comprehensive income) as the denominator.
(b)	Return on average assets is calculated by using net income as the numerator and average total assets as the denominator.

BNCCORP, INC.
CONSOLIDATED FINANCIAL DATA
(Unaudited)

	As of
(In thousands)	March 31, 2018		December 31, 2017		March 31, 2017
ASSET QUALITY
Loans 90 days or more delinquent and still accruing interest	$	–	$	26	$	65
Non-accrual loans		1,950		1,952		2,607
Total nonperforming loans	$	1,950	$	1.978	$	2,672
Other real estate, net and repossessed assets		–		–		214
Total nonperforming assets	$	1,950	$	1,978	$	2,886
Allowance for credit losses	$	7,811	$	7,861	$	8,040
Troubled debt restructured loans	$	1,891	$	1,908	$	2,137
Ratio of total nonperforming loans to total loans		0.42%		0.43%		0.61%
Ratio of total nonperforming assets to total assets		0.20%		0.21%		0.29%
Ratio of nonperforming loans to total assets		0.20%		0.21%		0.26%
Ratio of allowance for credit losses to loans and leases held for investment		1.79%		1.84%		1.96%
Ratio of allowance for credit losses to total loans		1.70%		1.69%		1.84%
Ratio of allowance for credit losses to nonperforming loans		401%		397%		301%

	For the Quarter Ended March 31,
(In thousands)	2018		2017
Changes in Nonperforming Loans:
Balance, beginning of period	$	1,978	$	2,445
Additions to nonperforming		66		557
Charge-offs		(31)		(206)
Reclassified back to performing		(26)		–
Principal payments received		(37)		(124)
Balance, end of period	$	1,950	$	2,672

BNCCORP, INC.
CONSOLIDATED FINANCIAL DATA
(Unaudited)

	For the Quarter Ended March 31,
(In thousands)	2018		2017
Changes in Allowance for Credit Losses:
Balance, beginning of period	$	7,861	$	8,285
Provision		–		–
Loans charged off		(57)		(253)
Loan recoveries		7		8
Balance, end of period	$	7,811	$	8,040

Ratio of net charge-offs to average total loans		(0.011)%		(0.056)%
Ratio of net charge-offs to average total loans, annualized		(0.044)%		(0.223)%

	For the Quarter Ended March 31,
(In thousands)	2018		2017
Changes in Other Real Estate:
Balance, beginning of period	$	–	$	214
Real estate sold		–		–
Net gains on sale of assets		–		–
Provision		–		–
Balance, end of period	$	–	$	214

	As of
(In thousands)	March 31, 2018		December 31, 2017		March 31, 2017
Other Real Estate:
Other real estate	$	–	$	–	$	954
Valuation allowance		–		–		(740)
Other real estate, net	$	–	$	–	$	214

BNCCORP, INC.
CONSOLIDATED FINANCIAL DATA
(Unaudited)
	As of
(In thousands)	March 31, 2018		December 31, 2017		March 31, 2017
CREDIT CONCENTRATIONS
North Dakota
Commercial and industrial	$	35,630	$	36,590	$	38,106
Construction		6,303		4,747		4,679
Agricultural		23,610		23,004		17,969
Land and land development		8,186		8,494		9,360
Owner-occupied commercial real estate		42,465		44,173		44,891
Commercial real estate		108,888		108,191		104,985
Small business administration		4,608		4,558		4,440
Consumer		56,925		56,318		46,945
Subtotal loans held for investment	$	286,615	$	286,075	$	271,375
Consolidated
Commercial and industrial	$	53,135	$	51,524	$	51,233
Construction		13,605		13,167		11,467
Agricultural		24,220		23,773		18,596
Land and land development		13,704		14,168		15,685
Owner-occupied commercial real estate		50,549		50,872		48,218
Commercial real estate		178,070		177,429		174,726
Small business administration		28,163		25,064		28,332
Consumer		73,271		71,876		62,310
Total loans held for investment	$	434,717	$	427,873	$	410,567