Coulee Bank Announces Agreement to Acquire Loans and Deposits From BNC National Bank's Golden Valley Branch

- BNC National Bank to close Golden Valley Branch

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Dec 30, 2020, 07:00 ET

BISMARCK, N.D., Dec. 30, 2020 /PRNewswire/ -- Coulee Bank and BNCCORP, INC. (OTCQX Markets: BNCC) announced today that they have signed a definitive agreement for Coulee Bank to acquire certain loans and deposits of the Golden Valley, Minnesota, branch of BNC National Bank, a wholly owned subsidiary of BNCC. Coulee Bank will service the loans and deposits out of its existing St. Paul, Minnesota, office.

"Golden Valley offers a great opportunity to expand Coulee Bank's customer base and to meet the evolving financial needs of our customers today and future customers of tomorrow. This will be Coulee Bank's second banking acquisition in Minnesota and first since 2010 when it acquired $54 million in assets and one banking location in Minnesota," said Dirk R. Gasterland, Chief Executive Officer of Coulee Bank.

BNCC Chairman Michael Vekich said, "This transaction and the subsequent closure of our Golden Valley branch, will permit our talented and dedicated leadership group and employee base to concentrate on providing the best service, products and solutions to our customers and communities in our core geographic markets in North Dakota and Arizona. The deal is a result of the Board's strategic planning process and focus on improved execution, business, and financial performance, advancing strategic priorities, and maintaining the organization's safe and sound practices in a volatile economic environment while driving sustainable shareholder value."

The transaction is expected to involve approximately $16.5 million of deposits and $17.2 million of loans based on BNCC's September 30, 2020, balance sheet.

It is expected to be completed in the second quarter of 2021, subject to customary closing conditions, including regulatory approval. Terms of the definitive agreement were not disclosed.

ABOUT COULEE BANK
Coulee Bank is a privately owned bank with seven banking locations located in Minnesota and Wisconsin. As of September 30, 2020, Coulee Bank had assets of $434.8 million, deposits of $333.7 million, loans of $351 million and 80 employees.

ABOUT BNCCORP, INC.
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 13 locations. BNC also conducts mortgage banking from 11 locations in Illinois, Kansas, Missouri, Michigan, Arizona, and North Dakota.

BNCC'S CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION.
This press release contains forward-looking statements regarding our expectations with respect to the planned acquisition by Coulee Bank of certain loans and deposits from BNC National Bank's Golden Valley branch and the subsequent closing of that branch.

Forward-looking statements are necessarily subject to numerous assumptions, risks, and uncertainties, which change over time. Future events or circumstances may change our outlook and may also affect the nature of the assumptions, risk, and uncertainty to which our forward-looking statements are subject. The forward-looking statements in this press release speak only as of the date of this press release, and we assume no duty, and do not undertake, to update them. Actual results or future events could differ, possibly materially, from those that we anticipated in these forward-looking statements. As a result, we caution against placing undue reliance on any forward-looking statements.

Forward-looking statements in this press release are subject to risks and uncertainties related both to the acquisition transaction itself and the closure of BNC National Bank's Golden Valley Branch, including that completion of the transaction is dependent on the satisfaction of customary closing conditions and regulatory approval, and that the closure of Golden Valley branch is also subject to regulatory approval, none of which can be assured. The timing of completion of the transaction is dependent on various factors that cannot be predicted with precision at this time.

SOURCE BNCCORP, INC.