North Dakota-based BNCCORP and its insurers have entered into a settlement agreement on fraud related claim, pursuant to which BNC has agreed to settle its claim for $7.5m.
BNC discovered that it had been defrauded in the second quarter of 2010, wherein the fraudulent activity was by an external company that was servicing residential loans on behalf of BNC.
Since 2010, the firm has been pursuing a claim under its fidelity bond with its insurers.
Following the settlement agreement, the company’s earnings pre-tax in third quarter will include approximately $5,000,000 of income related to this settlement.
BNCCORP provides banking and wealth management services to businesses and consumers as well as conducts mortgage banking from 12 locations in Illinois, Kansas, Nebraska, Missouri, Minnesota and Arizona, US.
With 15 locations, the company currently operates in Arizona, Minnesota and North Dakota, US, managing community banking and wealth management businesses.