BNC Bancorp (BNNC) 8-K BNC Bancorp Reports 25% Increase in Second Quarter Earnings Per Share

Exhibit 99.1

BNC Bancorp Reports 25% Increase in Second Quarter Earnings Per Share

          THOMASVILLE, N.C., Aug. 1 /PRNewswire-FirstCall/ -- BNC Bancorp (Nasdaq: BNCN) today reported operating results for the quarter and six-month periods ended June 30, 2005.

          For the quarter ended June 30, 2005, the Company reported net income of $1.11 million, an increase of 23% when compared to the $900,000 reported for the comparable quarter in 2004. Diluted earnings per share increased to $0.30 for the quarter, a 25% increase when compared to $0.24 reported for the same quarter in 2004.

          For the six-month period ended June 30, 2005, the Company reported net income of $2.07 million, an increase of 23% when compared to the $1.68 million reported for the first six months of 2005. Diluted earnings per share increased to $0.56 for the six-month period, compared to $0.45 reported for same period in 2004.

          Total assets as of June 30, 2005 were $563 million, an increase of 23% compared to the $458 million as of June 30, 2004.  Total loans on June 30, 2005 were $462 million, an increase of 25% from the $368 million reported as of June 30, 2004.  Deposits increased 23% over the same one-year period. Compared to balances at December 31, 2004, total loans increased $41 million, or 10% during the first six months of 2005.

          ”We are very pleased to report another strong quarter in terms of net income and asset growth. During the second quarter, net income grew 23%, diluted earnings per share were up 25%, and total assets increased 23% from year ago levels.  While we have experienced strong growth over the past two years, we are not looking for growth alone.  A successful growth strategy requires a dedication to strong asset quality and a strong correlation between the percentage growth in assets and earnings.  With assets and net income both reporting increases of 23%, we are very pleased that our growth is providing immediate gains for our shareholders,” said W. Swope Montgomery, Jr., President and CEO.  “For the quarter and six-month periods in 2005, our earnings have been driven by increases in net interest income of 23% and 24%, respectively.  Net interest income growth has been fueled by increases in the Bank’s commercial loan portfolio and a rising net interest margin.

          ”Asset quality, our number one priority, continues to be excellent with non-performing assets totaling only 0.46% of total assets.  As of June 30, 2005, non-accrual loans, other real estate owned, and loans 90 days past due and still accruing interest totaled $2.6 million compared to $3.1 million one year earlier and $1.7 million at the end of 2004. Net charge-offs to average loans for the first six months was at an annualized rate of 0.18%,” said Montgomery.

          ”As a continuation of our strategic plan to further improve our return on equity and enhance earnings per share for our shareholders, we successfully completed an $8 million placement of Junior Subordinated Debt Securities. These regulatory capital instruments, classified as Tier II capital, will enable the Company to continue to pursue its ambitious growth goals and further leverage our shareholders’ equity while remaining well capitalized by the regulatory agencies,” said Montgomery.

          BNC Bancorp is the parent company of Bank of North Carolina, a 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, High Point, Archdale, Lexington, Kernersville and Oak Ridge, North Carolina.  In addition, the Bank operates commercial and mortgage loan production offices in Salisbury and Winston-Salem, 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
	June 30, 2005			June 30, 2004			% Change
SUMMARY STATEMENTS OF OPERATIONS
Interest income	$	7,854		$	5,452			44.1	%
Interest expense		3,452			1,861			85.5
Net interest income		4,402			3,591			22.6
Provision for loan losses		525			230			128.3
Net interest income after provision for loan losses		3,877			3,361			15.4
Noninterest income		702			794			(11.6	)
Noninterest expense		3,061			2,880			6.3
Income before income tax expense		1,518			1,275			19.1
Provision for income taxes		411			375			9.6
Net income		1,107			900			23.0
PER SHARE DATA
Earnings per share, basic	$	0.32		$	0.26			23.1	%
Earnings per share, diluted		0.30			0.24			25.0
Weighted average common shares outstanding:
Basic		3,492,588			3,487,840
Diluted		3,701,636			3,724,346
PERFORMANCE RATIOS
Return on average assets		0.82	%		0.84	%
Return on average equity		14.02	%		13.09	%
Return on average tangible equity		15.77	%		15.01	%
Net yield on earning assets (taxable equivalent)		3.82	%		3.64	%
Average equity to average assets		5.88	%		6.39	%
Allowance for loan losses as a% of total loans		1.29	%		1.30	%
Non-performing assets to total assets, end of period		0.46	%		0.68	%
Ratio of net charge-offs to average loans outstanding		0.09	%		0.04	%

QUARTERLY PERFORMANCE SUMMARY
BNC BANCORP
(Dollars in thousands, except per share data)
(Unaudited)

	For the Six Months Ended
	June 30, 2005			June 30, 2004			% Change
SUMMARY STATEMENTS OF OPERATIONS
Interest income	$	14,854		$	10,439			42.3	%
Interest expense		6,216			3,457			79.8
Net interest income		8,638			6,982			23.7
Provision for loan losses		1,005			350			187.1
Net interest income after provision for loan losses		7,633			6,632			15.1
Noninterest income		1,319			1,429			(7.7	)
Noninterest expense		6,101			5,712			6.8
Income before income tax expense		2,851			2,349			21.4
Provision for income taxes		786			670			17.3
Net income		2,065			1,679			23.0
PER SHARE DATA
Earnings per share, basic	$	0.59		$	0.48			22.9	%
Earnings per share, diluted		0.56			0.45			24.4
Weighted average common shares outstanding:
Basic		3,490,335			3,490,443
Diluted		3,703,771			3,723,553
PERFORMANCE RATIOS
Return on average assets		0.79	%		0.82	%
Return on average equity		13.62	%		12.26	%
Return on average tangible equity		15.39	%		14.07	%
Net yield on earning assets (taxable equivalent)		3.82	%		3.69	%
Average equity to average assets		5.82	%		6.39	%

QUARTERLY PERFORMANCE SUMMARY
BNC BANCORP
(Dollars in thousands, except per share data)
(Unaudited)

	For the Three Months Ended
	June 30, 2005			March 31, 2005			Dec. 31, 2004			Sept. 30, 2004			June 30, 2004			Dec. 31, 2003
SUMMARY STATEMENTS OF OPERATIONS
Interest income	$	7,854		$	7,001		$	6,677		$	6,055		$	5,452		$	4,741
Interest expense		3,452			2,765			2,428			2,144			1,861			1,506
Net interest income		4,402			4,236			4,249			3,911			3,591			3,235
Provision for loan losses		525			480			560			280			230			130
Net interest income after provision for loan losses		3,877			3,756			3,689			3,631			3,361			3,105
Noninterest income		702			617			876			885			794			680
Noninterest expense		3,061			3,040			3,087			3,064			2,880			2,607
Income before income tax expense		1,518			1,333			1,478			1,452			1,275			1,178
Provision for income taxes		411			375			386			418			375			246
Net income		1,107			958			1,092			1,034			900			932
PER SHARE DATA
Earnings per share, basic	$	0.32		$	0.27		$	0.31		$	0.30		$	0.26		$	0.27
Earnings per share, diluted		0.30			0.26			0.30			0.28			0.24			0.25
Weighted average common shares outstanding:
Basic		3,492,588			3,488,057			3,477,247			3,472,835			3,487,840			3,488,247
Diluted		3,701,636			3,706,348			3,692,041			3,705,615			3,724,346			3,713,206
PERFORMANCE RATIOS
Return on average assets		0.82	%		0.76	%		0.88	%		0.91	%		0.84	%		1.00	%
Return on average equity		14.02	%		13.18	%		15.06	%		14.53	%		13.09	%		13.89	%
Return on average tangible equity		15.77	%		14.97	%		17.14	%		16.58	%		15.01	%		16.01	%
Net yield on earning assets (taxable equivalent)		3.82	%		3.82	%		3.81	%		3.62	%		3.64	%		3.90	%
Average equity to average assets		5.88	%		5.76	%		5.82	%		6.25	%		6.39	%		7.23	%

QUARTERLY PERFORMANCE SUMMARY
BNC BANCORP
(Dollars in thousands)
(Unaudited)

	As of
	June 30, 2005		June 30, 2004		% Change
SELECTED BALANCE SHEET DATA
End of period balances
Total loans	$	461,808	$	368,183		25.4	%
Allowance for loan losses		5,948		4,804		23.8
Loans, net of allowance for loan losses		455,860		363,379		25.5
Securities, available for sale		41,618		33,237		25.2
Total Assets		563,299		457,547		23.1
Deposits:
Noninterest-bearing deposits		43,606		33,268		31.1
Interest-bearing demand and savings		132,823		161,329		(17.7	)
CD’s and other time deposits		278,759		176,913		57.6
Total deposits		455,188		371,510		22.5
Borrowed Funds		73,266		57,149		28.2
Total interest-bearing liabilities		484,848		395,391		22.6
Shareholders’ Equity		31,426		27,151		15.8

	As of
	June 30, 2005		March 31, 2005		Dec. 31, 2004		Sept. 30, 2004		June 30, 2004		Dec. 31, 2003
SELECTED BALANCE SHEET DATA
End of period balances
Total loans	$	461,808	$	441,495	$	420,838	$	393,391	$	368,183	$	303,732
Allowance for loan losses		5,948		5,636		5,361		5,122		4,804		4,598
Loans, net of allowance for loan losses		455,860		435,859		415,477		388,269		363,379		299,134
Securities, available for sale		41,618		38,655		35,428		34,341		33,237		31,671
Total Assets		563,299		528,178		497,549		483,599		457,206		372,281
Deposits:
Noninterest- bearing deposits		43,606		40,954		34,485		34,646		33,268		30,090
Interest- bearing demand and savings		132,823		140,670		151,272		154,785		161,329		153,387
CD’s and other time deposits		278,759		246,801		205,723		200,673		176,913		113,265
Total Deposits		455,188		428,425		391,480		390,104		371,510		296,742
Borrowed Funds		73,266		67,561		73,771		62,213		56,808		46,535
Total interest- bearing liabilities		484,848		455,032		430,766		418,167		395,391		313,187
Shareholders’ Equity		31,426		29,927		29,037		28,687		27,151		26,493

SOURCE  BNC Bancorp
          -0-                                        08/01/2005
          /CONTACT:  W. Swope Montgomery, Jr., President and CEO of BNC Bancorp, +1-336-476-9200/
          /Photo:  http://www.newscom.com/cgi-bin/prnh/20030917/BNCLOGO
                       http://www.newscom.com/cgi-bin/prnh/20030917/BNC
                              AP Archive:  http://photoarchive.ap.org
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          /Web site:  http://www.bankofnc.com /

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