BNC Bancorp (BNNC) 8-K BNC Bancorp Reports 23% Increase in First Quarter Earnings

Exhibit 99.1

Press Release

Source:	BNC Bancorp
Contact:	W. Swope Montgomery, Jr.
	President and CEO
	336-476-9200

BNC Bancorp Reports 23% Increase in First Quarter Earnings

THOMASVILLE, N.C., / — BNC Bancorp (Nasdaq: BNCN) today reported record operating results for the three-months ended March 31, 2005.

For the three-month period ended March 31, 2005, the Company reported net income of $958,000, an increase of 23.0% when compared to the $779,000 reported for the first quarter in 2004. Diluted earnings per share increased to $0.26 for the first quarter, a 23.8% increase when compared to $0.21 reported for the same period in 2004.

Total assets as of March 31, 2005 were $528.2 million, an increase of 29.6% compared to the $407.5 million as of March 31, 2004. Total loans on March 31, 2005 were $441.5 million, an increase of 31.4% from the $336.0 million reported as of March 31, 2004. Deposits increased 33.2% over the same one-year period.

“I am once again pleased to report another strong quarter for BNC Bancorp,” said W. Swope Montgomery, Jr., President and CEO. “Earnings increased by over 23%, driven primarily by our continued momentum on the loan side and improvement in our net interest margin. This marks the sixth consecutive quarter with net loan growth in excess of $22 million.”

“In February, we opened our first full service office in High Point. This was of great significance to our Company for two reasons: 1) Many of our original Directors and Incorporators are natives and current residents of High Point, and 2) This marks the first full service office we’ve opened after first entering the market with a loan production office. With the reception we have received by the High Point community, we are more convinced than ever that this model for expansion is best for our Company and our shareholders”, said Montgomery.

BNC Bancorp is the parent company of Bank of North Carolina, a $528 million commercial bank that provides a complete line of banking and financial services to individuals and businesses through full-service banking offices located in the cities of Thomasville, Archdale, Lexington, Kernersville, Oak Ridge and High Point, North Carolina. In addition, the Bank operates commercial and mortgage loan production offices in Salisbury, Winston-Salem and Mt. Airy, North Carolina. Bank of North Carolina is insured by the FDIC and is an equal housing lender. BNC Bancorp’s stock is quoted in the Nasdaq Small-Cap market under the symbol “BNCN.”

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements as defined by federal securities laws. These statements may address issues that involve significant risks, uncertainties, estimates and

assumptions made by management. Actual results could differ materially from current projections. Please refer to BNC Bancorp’s filings with the Securities and Exchange Commission for a summary of important factors that could affect BNC Bancorp’s forward-looking statements. BNC Bancorp undertakes no obligation to revise these statements following the date of this press release.

QUARTERLY PERFORMANCE SUMMARY

BNC BANCORP

(Dollars in thousands, except per share data)

(Unaudited)

	For the Three Months Ended
	March 31, 2005			March 31, 2004			% Change
SUMMARY STATEMENTS OF OPERATIONS
Interest income	$	7,001		$	4,987		40.4	%
Interest expense		2,765			1,596		73.3
Net interest income		4,236			3,391		24.9
Provision for loan losses		480			120		300.0
Net interest income after provision for loan losses		3,756			3,271		14.8
Noninterest income		617			635		(2.8	)
Noninterest expense		3,040			2,832		7.3
Income before income tax expense		1,333			1,074		24.1
Provision for income taxes		375			295		27.1
Net income		958			779		23.0
PER SHARE DATA
Earnings per share, basic	$	0.27		$	0.22		22.7	%
Earnings per share, diluted		0.26			0.21		23.8
Weighted average common shares outstanding:
Basic		3,488,057			3,493,046
Diluted		3,706,348			3,723,795
PERFORMANCE RATIOS
Return on average assets		0.76	%		0.82	%
Return on average equity		13.18	%		11.55	%
Return on average tangible equity		14.97	%		13.27	%
Net yield on earning assets (taxable equivalent)		3.83	%		3.81	%
Average equity to average assets		5.76	%		7.05	%
Allowance for loan losses as a % of total loans		1.28	%		1.39	%
Non-performing assets to total assets, end of period		0.27	%		0.43	%
Ratio of net charge-offs to average loans outstanding		0.05	%		0.02	%

QUARTERLY PERFORMANCE SUMMARY

BNC BANCORP

(Dollars in thousands, except per share data)

(Unaudited)

	For the Three Months Ended
	March 31, 2005			December 31, 2004			September 30, 2004			June 30, 2004			March 31, 2004			December 31, 2003
SUMMARY STATEMENTS OF OPERATIONS
Interest income	$	7,001		$	6,677		$	6,055		$	5,452		$	4,987		$	4,741
Interest expense		2,765			2,428			2,144			1,861			1,596			1,506
Net interest income		4,236			4,249			3,911			3,591			3,391			3,235
Provision for loan losses		480			560			280			230			120			130
Net interest income after provision for loan losses		3,756			3,689			3,631			3,361			3,271			3,105
Noninterest income		617			876			885			794			635			680
Noninterest expense		3,040			3,087			3,064			2,880			2,832			2,607
Income before income tax expense		1,333			1,478			1,452			1,275			1,074			1,178
Provision for income taxes		375			386			418			375			295			246
Net income		958			1,092			1,034			900			779			932
PER SHARE DATA
Earnings per share, basic	$	0.27		$	0.31		$	0.30		$	0.26		$	0.22		$	0.27
Earnings per share, diluted		0.26			0.30			0.28			0.24			0.21			0.25
Weighted average common shares outstanding:
Basic		3,488,057			3,477,247			3,472,835			3,487,840			3,493,046			3,488,247
Diluted		3,706,348			3,692,041			3,705,615			3,724,346			3,723,795			3,713,206
PERFORMANCE RATIOS
Return on average assets		0.76	%		0.88	%		0.91	%		0.84	%		0.81	%		1.00	%
Return on average equity		13.18	%		15.06	%		14.53	%		13.09	%		11.43	%		13.89	%
Return on average tangible equity		14.97	%		17.14	%		16.58	%		15.01	%		13.12	%		16.01	%
Net yield on earning assets (taxable equivalent)		3.83	%		3.81	%		3.62	%		3.64	%		3.81	%		3.90	%
Average equity to average assets		5.76	%		5.82	%		6.25	%		6.39	%		7.05	%		7.23	%

QUARTERLY PERFORMANCE SUMMARY

BNC BANCORP

(Dollars in thousands)

(Unaudited)

	As of
	March 31, 2005		March 31, 2004		% Change
SELECTED BALANCE SHEET DATA
End of period balances
Total loans	$	441,495	$	336,040	31.4	%
Allowance for loan losses		5,636		4,654	21.1
Loans, net of allowance for loan losses		435,859		331,386	31.5
Securities, available for sale		38,655		31,642	22.2
Total Assets		528,178		407,547	29.6
Deposits:
Noninterest-bearing deposits		40,954		35,844	14.3
Interest-bearing demand and savings		140,670		152,110	(7.5	)
CD’s and other time deposits		246,801		133,666	84.6
Total deposits		428,425		321,620	33.2
Borrowed Funds		67,561		56,249	20.1
Total interest-bearing liabilities		455,032		342,025	33.0
Shareholders’ Equity		29,927		27,527	8.7

	As of
	March 31, 2005		December 31, 2004		September 30, 2004		June 30, 2004		March 31, 2004		December 31, 2003
SELECTED BALANCE SHEET DATA
End of period balances
Total loans	$	441,495	$	420,838	$	393,391	$	368,183	$	336,040	$	303,732
Allowance for loan losses		5,636		5,361		5,122		4,804		4,654		4,598
Loans, net of allowance for loan losses		435,859		415,477		388,269		363,379		331,386		299,134
Securities, available for sale		38,655		35,428		34,341		33,237		31,642		31,671
Total Assets		528,178		497,549		484,095		457,547		407,547		372,281
Deposits:
Noninterest-bearing deposits		40,954		34,485		34,646		33,268		35,844		30,090
Interest-bearing demand and savings		140,670		151,272		154,785		161,329		152,110		153,387
CD’s and other time deposits		246,801		205,723		200,673		176,913		133,666		113,265
Total Deposits		428,425		391,480		390,104		371,510		321,620		296,742
Borrowed Funds		67,561		73,771		62,213		56,808		56,249		46,535
Total interest-bearing liabilities		455,032		430,766		418,167		395,391		342,025		313,187
Shareholders’ Equity		29,927		29,037		28,687		27,151		27,523		26,493