BNC Bancorp (BNNC) 8-K Super Community Bank Conference

Super Community Bank Conference

Atlanta, Georgia

February 2006

BNC BANCORP

Exhibit

99.1

BNC BANCORP

Forward-Looking Statements

This

presentation

contains

forward-looking

statements

as

defined

by

federal

securities

laws.

The

written

or

oral

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

release

of

this

presentation.

BNC Bancorp

Bank of North Carolina

•

One Bank Holding Company Headquartered in Thomasville,

NC.  

•

Bank of North Carolina chartered in 1991.

•

NASDAQ Small Cap:  BNCN

•

$594 million in Assets

•

$81 million market capitalization

•

8 Full Service Offices

•

Two new city offices opening in 2006

•

3 New Greensboro Office in SSBT acquisition

•

2 Loan Production Offices serving both the Commercial and Mortgage

markets

•

Concentration in High Growth Markets

NASDAQ Small Cap:  BNCN

Corporate Governance

No Customer, Employee, Director, or

Financial Representation is worth

compromising the Integrity

of our

Organization. The Integrity

of BNC

Bancorp is our most cherished Asset.

NASDAQ Small Cap:  BNCN

BNC BANCORP

THE FRANCHISE

Growth Markets

Located

in

the

Piedmont

Triad

Region

of

North

Carolina

–

Two of the Largest MSA’s in the State (includes High Point, Winston-

Salem and Greensboro) with over 1.4 million people.

This Region has two major Interstate Highways.

–

I-40 which runs from North Carolina to California

–

I-85 which connects with I-95 to service the entire East Coast

The counties in the I-85/I-40 Corridor comprise the majority of

the high growth markets in North Carolina.

With textiles and furniture declining, a supply of inexpensive,

non-union labor is attracting new, diverse businesses.

Recently, Fed-Ex, Lowe’s and DELL have made major commitments to

the area.

ALAMANCE

ALEXANDER

ALLEGHANY

ANSON

ASHE

AVERY

BEAUFORT

BERTIE

BLADEN

BRUNSWICK

BUNCOMBE

BURKE

Cabarrus

CALDWELL

CAMDEN

CARTERET

CASWELL

CATAWBA

CHATHAM

CHEROKEE

CHOWAN

CLAY

CLEVELAND

COLUMBUS

CRAVEN

CUMBERLAND

CURRITUCK

DARE

Davidson

Davie

DUPLIN

DURHAM

EDGECOMBE

Forsyth

FRANKLIN

GASTON

GATES

GRAHAM

GRANVILLE

GREENE

Guilford

HALIFAX

HARNETT

HAYWOOD

HENDERSON

HERTFORD

HOKE

HYDE

Iredell

JACKSON

JOHNSTON

JONES

LEE

LENOIR

LINCOLN

MCDOWELL

MACON

MADISON

MARTIN

Mecklenburg

MITCHELL

MONTGOMERY

MOORE

NASH

NEW HANOVER

NORTHAMPTON

ONSLOW

ORANGE

PAMLICO

PASQUOTANK

PENDER

PERQUIMANS

PERSON

PITT

POLK

Randolph

RICHMOND

ROBESON

ROCKINGHAM

Rowan

RUTHERFORD

SAMPSON

SCOTLAND

STANLY

STOKES

SURRY

SWAIN

TRANSYLVANIA

TYRRELL

UNION

VANCE

WAKE

WARREN

WASHINGTON

WATAUGA

WAYNE

WILKES

WILSON

YADKIN

YANCEY

High Growth Market-

BNC Office

High Growth Market-BNC Lending Area

High Growth Market

Medium Growth Market

Slow Growth Market

I-40 East/West

I-85 North/South

Information Based on Market Scoring Analysis by Raymond James & Associates.

North Carolina Growth By County

High Growth Markets

Household and Employment Growth

* Denotes Office Expansion in 2005/2006

0%

5%

10%

15%

20%

25%

30%

35%

Davidson

Randolph

Guilford

Rowan

Forsyth

Cabarrus

Iredell

Household Growth

Employment Growth

Growth (1990 –

2000)

Source:  2000 US Census Data

Solid Lines Denote National Averages

*

*

*

*

Deposit Market Share

Growth Opportunities

Source:June 30, 2005 FDIC Deposit Statistics

Thomasville  (opened in 1991)

Archdale-Trinity  (opened in 1995)

$662 million Market

$210 million Market

#1

Bank of North Carolina

41.48%

#1

Bank of North Carolina

28.87%

#2

BB&T

15.85%

#2

Wachovia

28.41%

#3

Wachovia

12.52%

#3

First National Bank

18.48%

Lexington  (opened in 1997)

Kernersville  (opened in 2002)

$849 million Market

$514 million Market

#1

Lexington State Bank

49.55%

#1

Wachovia

27.69%

#2

Wachovia

14.81%

#2

BB&T

21.71%

#3

Industrial FSB

11.12%

#3

Piedmont FS&LA

14.54%

#6

Bank of North Carolina

6.80%

#6

Bank of North Carolina

5.95%

High Point  (opened in 2005)

Salisbury (LPO opened in 2003)

$1.574 billion Market

$816 million Market

#1

High Point Bank

30.66%

#1

Wachovia

30.62%

#2

Wachovia

19.64%

#2

SunTrust

21.34%

#3

BB&T

18.72%

#3

Farmers & Merchants

20.99%

Bank of North Carolina

0.75%

Bank of North Carolina

0.97%

BNC BANCORP

Financial Results

Year Ended 12/31/2005

Financial Highlights 2005

25.4%

$490.9M

Period Ending Total Deposits

18.6%

$499.2M

Period Ending Total Loans

+92 bpts

14.50%

Return on Avg Equity

+81 bpts

16.34%

Return on Avg Tangible Equity

18.4%

$4.5M

Net Income

18.4%

$1.03

Basic EPS

18.3%

$0.97

Diluted EPS

% Change

Year 2005

NASDAQ Small Cap:  BNCN

$0

$100

$200

$300

$400

$500

$600

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Loans

Deposits

Assets

Consistent Record of Growth

Amounts in Millions

Compounded Annual Growth Rates

1995+

5Yr

3Yr

Loans

28.7%

28.6%

27.2%

Deposits

26.4%

27.0%

23.4%

Assets

27.0%

26.9%

24.9%

Consistent Growth In Net Income

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

1997

1998

1999

2000

2001

2002

2003

2004

2005

Income Before Taxes

Net Income

Amounts in thousands

Compounded Annual Growth Rates

1997+

5Yr

3Yr

Income Before Taxes

29.4%

20.7%

18.1%

Net Income

31.8%

22.7%

19.9%

Diluted EPS Growth

$0.30

$0.39

$0.46

$0.60

$0.73

$0.82

$0.97

1999

2000

2001

2002

2003

2004

2005

NASDAQ Small Cap:  BNCN

+26.3%

+20.8%

+29.3%

+21.3%

+13.2%

Compounded Annual Growth Rates

1997+

5Yr

3Yr

Diluted EPS

23.8%

20.4%

17.4%

+23.7%

+18.3%

Return on Avg Tangible Equity

8.58%

10.26%

10.50%

12.74%

14.68%

15.53%

16.34%

1999

2000

2001

2002

2003

2004

2005

NASDAQ Small Cap:  BNCN

In 2002, BNC’s acquisition

of Independence Bank

provided $50 million in

assets and diversification

into two new growth

markets.   With 60% of the

deal consideration in cash,

the transaction was

accretive in year one and

BNC was able to leverage

existing equity capital and

enhance ROE.  Since

2002, BNC has issued $16

million in Trust Preferred

Securities and $8 million in

subordinated debt to

further leverage

shareholders’

equity.

BNC BANCORP

Credit Quality &

Risk Management

$126

$121

$104

$103

$67

$52

$37

$15

0

25

50

75

100

125

150

Total Loans by City

Diversification by Expansion

SSBT

Blue:  2005

Blue:  2005

Red:  2002

Red:  2002

Understanding we can’t be specialist in every aspect of lending,

the personality of our loan portfolio is commensurate with the

experience and specialty areas of our lenders.

Strengths:

Relationship Banking

Owner Occupied Real Estate

1-4 Family Residential Rental Property

Cash Flow Lending

Our

lenders

are

charged

with

identifying

loan

opportunities

that

fit

our portfolio personality and can be supported and monitored by

the Bank’s internal administrative infrastructure. 

Lending Philosophy

0.19%

0.10%

0.23%

0.49%

0.09%

0.12%

0.38%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1999

2000

2001

2002

2003

2004

2005

Net Charge-offs to Avg Loans

0.08%

0.09%

0.14%

0.55%

0.27%

0.34%

0.40%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1999

2000

2001

2002

2003

2004

2005

Acquired

Independence Bank

in 2002

1.25%

1.31%

1.33%

1.85%

1.51%

1.27%

1.23%

0.0%

0.5%

1.0%

1.5%

2.0%

1999

2000

2001

2002

2003

2004

2005

NASDAQ Small Cap:  BNCN

Nonperforming Assets to Total Assets

Allowance for Loan Losses

Credit Quality Measures

Transaction Presentation

Table of Contents

I.

SterlingSouth Overview

II.

Transaction Overview

SterlingSouth Overview

Section I.

Overview of SterlingSouth

Operations began in October 2000 in Greensboro, North Carolina (Guilford

County)

$157 million in assets, $12.9 million in total equity

Loan and deposit growth over 30% for last three years

Impeccable asset quality –

virtually no NPA / charge-off history

Dynamic banking market located within the Greensboro-High Point MSA

–

#8 community banking market share

Two

full

service

branches

in

Guilford

County

–

a

third

office

opening

downtown

Insiders collectively own 35% of the Company

SterlingSouth Financial Profile

Loans

$119,211

Assets

148,281

Deposits

121,262

Equity

12,644

Balance Sheet ($000's)

Net Interest Income

$4,532

Noninterest Income

296

Noninterest Expense

3,148

Net Income

1,129

LTM Income ($000's)

*

As of and for the twelve months ended September 30, 2005.

ROAA

0.85%

ROAE

9.35%

Net Interest Margin

3.58%

Equity/ Assets

8.53%

Efficiency

65.20%

Performance Ratios

SterlingSouth Financial History

Balance Sheet

2003

2004

Q3 2005

Assets

94,275

$  

123,000

$  

148,281

$ 

Loans

76,661

96,902

119,211

Deposits

83,255

102,789

121,262

Equity

7,765

11,891

12,644

Performance

ROAA

0.00%

0.34%

0.85%

ROAE

0.01%

3.37%

9.35%

Net Interest Margin

2.53%

3.04%

3.58%

Efficiency Ratio

100.30%

81.37%

65.20%

Per Share Data

EPS

-

$             

0.31

$        

$0.89

Book Value per Share

8.43

$      

9.34

$        

$9.93

SterlingSouth Management Team

Ralph N. Strayhorn III: President & CEO

–

24 years

of relevant community banking experience

–

Former Sr. Vice President, Investors Title Insurance Company (Chapel Hill, NC)

–

Former Executive Vice President, Park Meridian Financial Corp.

(Charlotte, NC)

Thomas M. Nelson: Executive Vice President, CCO

–

21 years

experience in commercial lending / credit

–

Former Sr. Vice President, Bank of America (Charlotte, NC) –

16 years experience

Patricia M. Strickland: Sr. Vice President, COO

–

25

years

of

leadership

experience

in

operations

for

several

NC

community

banks

–

Former COO of Independence Bank

–

Former systems conversion executive with Fiserv

SterlingSouth Senior Lending Team

Jim K. Bowman: Sr. Vice President

–

30 years

banking experience in real estate lending in Triad area

–

Formerly employed with Park Meridian and Centura

Jay Harris:  Sr. Vice President

–

17

years

business

banking

experience

in

the

Triad  

–

Formerly

employed

with

Bank

of

America

and

First

Citizens

Curtis Weaver: Director of Leasing

–

25

years

commercial

leasing

experience

in

the

Triad

market

–

Formerly

employed

with

BB&T;

GM-Gate

City

Leasing

Heather

Grossnickel: Senior Vice President

–

26

years

commercial

real

estate

lending

experience

in

the

Triad

–

Formerly

employed

with

Bank

of

America

and

SunTrust

Transaction Overview

Section II.

Transaction Terms

Fixed exchange ratio

Aggregate purchase price

Purchase price per SSBT share

Consideration

(1)

Anticipated Closing

SSBT pro forma ownership

(1)

Board seats

Breakup Fee

Collar

1.21056 shares of BNCN for each SSBT share

$33.2 million (fully diluted)

$22.03 (based on BNC 20 day avg. price)

100% stock

Early third quarter 2006

26%

Four board seats to SSBT

$1.25 million

12% collar

(1)

Not fully diluted

Transaction Multiples /

Premiums

(1)

Transactions

involving

targets

in

NC,

SC,

&

VA

in

metropolitan

markets

9/30/2005

Comparable

Transactions

1

Price/ LTM EPS

24.65x

33.77x

Price/ 2006E EPS

18.7x

NA

Price/ Book Value

2.21x

2.61x

Core Deposit Premium

23.2%

23.9%

Market Premium

27.7%

45.7%

Transaction Merits

The proposed transaction will improve metrics that drive bank value:

–

People:

•

Experienced Management team with proven performance

•

Board members with deep local roots

•

Strong lending group of seasoned bankers with ability to carry much large books

•

Lenders and Key Employees to receive signing bonuses to insure retention

–

Earnings:

•

Low cost savings estimate / infrastructure maintained to support

growth

•

2006

and

2007

BNC

staffing

needs

in

support

and

management

roles

addressed

by

SSBT staff (indirect cost savings)

•

Revenue enhancements –

significant potential

–

Higher lending limits

»

Immediate overline pickup ($10 million+ in participations sold)

»

Significant potential for additional business with current customers

–

Noninterest Income:  Mortgage, Leasing, and Wealth Management

–

Change SSBT’s investment portfolio from liquidity to earnings

Transaction Merits

–

Shareholder Liquidity:

•

Pro forma shares outstanding would increase 1.68 million shares to 6 million shares

•

Pro forma market cap would approximate $112.1 million

•

Pro forma float to approximate 4.6 million shares

(1)

(1) Float calculated by subtracting insider ownership from shares outstanding and adding shares issued in the transaction

–

Growth:

•

Increases total assets by $160m to almost $800 million

•

SterlingSouth growth rate of 25%+

•

Pro forma growth rate over 20%

–

Franchise / Market:

•

Acquire Greensboro, Guilford County footprint

•

Third largest county in North Carolina

•

Provides important element to Triad strategy

•

$9.5 billion deposit market

•

BNC planned to enter market in the future on a de novo basis

3-Year Growth Profile

The SterlingSouth transaction should enhance BNC’s already high growth rates

Assets

24.90%

29.92%

Loans

27.20%

40.52%

Deposits

23.40%

29.95%

Equity

9.89%

15.70%

Net Income

19.90%

NM

EPS

17.40%

NM

SSBT

BNCN

Pro Forma Financials

(1)

BNC Bancorp

SterlingSouth

Pro-Forma

ASSETS

Cash Fed Funds and Balances Due

$15,064

$8,009

$21,473

Gross Loans

500,948

125,751

626,699

Allowance for Loan Losses

6,140

1,666

7,806

Intangibles

3,483

-

24,765

Other Assets

18,388

3,824

22,212

TOTAL ASSETS

$594,114

$157,379

$768,845

LIABILITIES

Total Deposits

$490,906

$132,661

$623,567

Short Term Debt

50,061

11,304

61,365

Accrued Expenses & Other Liabilities

3,567

490

4,057

TOTAL LIABILITIES

544,533

144,455

689,577

TRUST PREFERRED, MINORITY INT.

16,496

-

16,496

TOTAL SHAREHOLDERS' EQUITY

33,085

12,924

62,771

LIABILITIES & SHAREHOLDERS' EQUITY

$594,114

$157,379

$768,845

(1)  Includes anticipated impact of pro forma purchase accounting adjustments.

ALAMANCE

ALEXANDER

ALLEGHANY

ANSON

ASHE

AVERY

BEAUFORT

BERTIE

BLADEN

BRUNSWICK

BUNCOMBE

BURKE

Cabarrus

CALDWELL

CAMDEN

CARTERET

CASWELL

CATAWBA

CHATHAM

CHEROKEE

CHOWAN

CLAY

CLEVELAND

COLUMBUS

CRAVEN

CUMBERLAND

CURRITUCK

DARE

Davidson

Davie

DUPLIN

DURHAM

EDGECOMBE

Forsyth

FRANKLIN

GASTON

GATES

GRAHAM

GRANVILLE

GREENE

Guilford

HALIFAX

HARNETT

HAYWOOD

HENDERSON

HERTFORD

HOKE

HYDE

Iredell

JACKSON

JOHNSTON

JONES

LEE

LENOIR

LINCOLN

MCDOWELL

MACON

MADISON

MARTIN

Mecklenburg

MITCHELL

MONTGOMERY

MOORE

NASH

NEW HANOVER

NORTHAMPTON

ONSLOW

ORANGE

PAMLICO

PASQUOTANK

PENDER

PERQUIMANS

PERSON

PITT

POLK

Randolph

RICHMOND

ROBESON

ROCKINGHAM

Rowan

RUTHERFORD

SAMPSON

SCOTLAND

STANLY

STOKES

SURRY

SWAIN

TRANSYLVANIA

TYRRELL

UNION

VANCE

WAKE

WARREN

WASHINGTON

WATAUGA

WAYNE

WILKES

WILSON

YADKIN

YANCEY

High Growth Market-

BNC Office

High Growth Market-BNC Lending Area

High Growth Market

Medium Growth Market

Slow Growth Market

I-40 East/West

I-85 North/South

Information Based on Market Scoring Analysis by Raymond James & Associates.

North Carolina Growth By County

Pro Forma Franchise Map

BNCN

SterlingSouth

Community Bank Market Share –

Greensboro MSA

Percent of

Total

Market

Parent

2005

Deposits

Share

Deposits

Rank

Institution

Branches

($000)

(%)

(%)

1

High Point Bank Corp. (NC)

8

$514,012

18.9%

100.0%

2

FNB Financial Services Corp. (NC)

10

453,547

16.7%

55.8%

3

FNB Corp. (NC)

11

427,156

15.7%

31.6%

4

Carolina Bank Holdings Inc. (NC)

4

270,909

9.9%

100.0%

5

BNCN / SterlingSouth Pro Forma

6

199,042

7.3%

34.9%

6

Randolph Bank & Trust Company (NC)

5

171,099

6.3%

82.3%

7

Fidelity Bancshares (NC) Inc. (NC)

10

122,391

4.5%

11.7%

NM

SterlingSouth (NC)

2

114,864

4.2%

100.0%

8

First Bancorp (NC)

6

112,179

4.1%

7.5%

9

Bank of Oak Ridge (NC)

3

111,270

4.1%

100.0%

10

HomeTrust Bnk (NC)

2

87,211

3.2%

14.8%

NM

BNC Bancorp (NC)

4

84,178

3.1%

18.5%

Other

26

254,872

9.4%

NM

Total Community Banks

91

$2,723,688

100.0%

Loans are Classified by Purpose, then by Collateral.

* ARMs

and

short

balloons;

all

fixed

rate

conventional

mortgages

are

sold

Loan Portfolio Mix

December 31, 2005   (Actual versus Pro Forma)

Consumer

Commercial

Unsecured

13.1

$    

Unsecured

23.4

$    

Marketable Securities

2.1

Marketable Securities

13.1

Autos and Equipment

10.9

Machinery and Equipment

23.9

Total Consumer

26.1

$      

A/R, Inventory, and M&E

24.7

Real Estate - Construction

107.5

Consumer Real Estate

Real Estate - Commercial

161.5

Construction

9.3

$      

Real Estate -  1-4 Family

78.0

Home Equity Lines of Credit

56.4

Real Estate - Multi-Family

15.7

Real Estate -  1-4 Family *

32.1

Real Estate - Land

42.2

Real Estate - Multi-Family

1.2

Real Estate - Church

5.6

Land

2.9

Total Commercial

495.6

$   

Total Consumer Real Estate

101.9

$    

Total Loan Portfolio

623.6

$                          

Consumer

Commercial

Unsecured

9.1

$      

Unsecured

19.6

$    

Marketable Securities

0.7

Marketable Securities

9.7

Autos and Equipment

5.1

Machinery and Equipment

21.7

Total Consumer

14.9

$      

A/R, Inventory, and M&E

14.6

Real Estate - Construction

83.5

Consumer Real Estate

Real Estate - Commercial

127.3

Construction

6.4

$      

Real Estate -  1-4 Family

71.0

Home Equity Lines of Credit

39.4

Real Estate - Multi-Family

15.2

Real Estate -  1-4 Family *

26.3

Real Estate - Land

40.7

Real Estate - Multi-Family

1.2

Real Estate - Church

5.6

Land

2.1

Total Commercial

408.9

$   

Total Consumer Real Estate

75.4

$      

Total Loan Portfolio

499.2

$                          

A

c

t

u

a

l

P

r

o

F

o

r

m

a

BNC BANCORP

Stock Performance

Shareholder Returns

Employees as Stakeholders

•

Compensation for Stakeholders: 

•

Incentive Plan which aligns our employees with the interests of

our shareholders.  Includes regular coaching sessions by

Senior Management with all employees.

•

Philosophy: 

•

Hire Exceptional, Experienced, Self-Disciplined People

•

Empower them, and

•

Reward them for contributions to our Bankwide Goal of

Enhancing Long-term ROE.

Stock Dividend History

•

25% stock dividend in 2005

•

10% stock dividend in 2003

•

25% stock dividend in 2000

•

25% stock dividend in 1999

•

25% stock dividend in 1998

•

25% stock dividend in 1997

•

10% stock dividend in 1996

•

25% stock dividend in 1995

1,000

shares

in

January

1995

are now

4,616

shares

as

of

12/31/2005

Cash Dividend History

•

$0.160 Annual Dividend:  Q1 2006

•

$0.128 Annual Dividend:  Q1 2005

•

$0.112 Annual Dividend:  Q1 2004

•

$0.086 Annual Dividend:  Q1 2003

All amounts are split adjusted

NASDAQ Small Cap:  BNCN

Growth of Investment in BNCN

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

1998

1999

2000

2001

2002

2003

2004

2005

23.5% Compound

Annual Return since 1998

NASDAQ Small Cap:  BNCN

Current Valuation

1.12

PEG Ratio  [3 Yr EPS Growth Rate]

0.96

2.8 times

19.5 times

$595M

$6.78

$18.93

$0.97

Actual

Price to LTM EPS

19.3%

27.9%

Closing Stock Price on 2/3/06

Price to Tangible Book Value

9.30%

11.5%

Tangible Book Value

26.9%

24.9%

Total Assets, End of Year

20.4%

17.4%

Diluted EPS

PEG Ratio  [5 Yr EPS Growth Rate]

5 Year

Compounded

Growth Rate

3 Year

Compounded

Growth Rate

NASDAQ Small Cap:  BNCN

BNC BANCORP

Strategic Plan

Strategic Plan

Expand our market presence within the high growth areas of

Central North Carolina along the I-85/I-40 corridor.

Leverage the exceptional bankers and market potential acquired in

the SterlingSouth transaction. 

Identify

and

hire

seasoned

lenders

of

high

character

to

lead

our

efforts into new high growth markets targeted for expansion.

Identify

and

hire

seasoned

lenders

of

high

character

in

existing

markets to further leverage our branch network.

Continue to utilize Loan Production Offices as an Entry Vehicle into

desirable markets.

Plan to have LPO’s converted to full-service offices within 18

months to pursue a core-deposit base in these markets.

NASDAQ Small Cap:  BNCN

Continue to expand and enhance our risk management processes.

Utilize

alternative

forms

of

regulatory

capital,

when

available,

to

enhance Leverage and Return on Average Equity.

Improve and expand our penetration into the retail markets.  Continue

our 2005 initiative of behavioral and sales training, streamlined

product offerings, and systems of accountability.   

If core deposit growth is not sufficient to fund asset generation, we will

utilize wholesale funding with maturities ranging from 6 months to 5

years as deemed prudent from an Asset-Liability perspective.

Repurchase “BNCN”

shares from the open market as prescribed in

the approved Plan of Repurchase.

Emphasize a company culture where all employees interests are

aligned with those of the Shareholders.

NASDAQ Small Cap:  BNCN

Strategic Plan

Strategic Plan

Guiding Principal for Management:

Maximize Long-Term

Shareholder Value by Enhancing

EPS  &  ROE

NASDAQ Small Cap:  BNCN

Strategic Goals:  2006 to 2008

NASDAQ Small Cap:  BNCN

Compound EPS Growth Rate:

15%+

Return on Average Tangible Equity: 

16% to 20%+

Asset Growth Rate: 

$90 -

$100 million

per year.

If Strategic Opportunities arise that can produce accretive quarterly

results within one year, management will vigorously pursue these

opportunities.  This may mean an offering of additional common equity, or

an acquisition where consideration is up to 100% stock.  We do not

believe that it is in our shareholders best interest to have lazy capital

awaiting a “possible”

opportunity.  If the opportunity arises, and it makes

economic and strategic sense to our organization, we will pursue

capital

options as needed.