BNC Bancorp (BNNC) 8-K BNC Bancorp Reports 18% Increase in First Quarter Earnings

Exhibit 99.1

BNC Bancorp Reports 18% Increase in First Quarter Earnings

          THOMASVILLE, N.C., April 27 /PRNewswire-FirstCall/ -- BNC Bancorp (Nasdaq: BNCN) today reported record earnings for the three-months ended March 31, 2006.

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          For the three-month period ended March 31, 2006, the Company reported net income of $1.13 million, an increase of 18.0% when compared to the $958,000 reported for the first quarter in 2005. Diluted earnings per share increased to $0.24 for the first quarter, a 14.3% increase when compared to $0.21 reported for the same period in 2005.

          Total assets as of March 31, 2006 were $623.9 million, an increase of 18.1% compared to the $528.2 million as of March 31, 2005.  Total loans on March 31, 2006 were $522.1 million, an increase of 18.3% from the $441.5 million reported as of March 31, 2005.  Deposits increased 21.8% 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 18%, despite a tremendous investment in people and new locations during the quarter.  We are now fully staffed at each of our new loan production offices in Harrisburg and Northern Davidson County, as well as our full-service office in Salisbury.  While this investment in quality bankers and locations contributed to non-interest expense increasing by 12.4% compared to our December 2005 quarter, future contributions of these offices should be an integral part in maintaining our momentum in both earnings and asset growth.”

          “Our banking fundamentals remained strong during the first quarter. Loans increased $22.9 million during the first quarter of 2006 to $522.1 million, an annualized growth rate of 18.5%.  Asset quality remained sound with the allowance for loan losses to nonperforming loans at 254%; nonperforming assets to total assets at the end of the quarter of 0.41%; and net charge-offs to average loans at an annualized level of 0.09%.  Net interest margin for the quarter was at 4.07% compared to 3.82% during the first quarter of 2005,” said Montgomery.

          Montgomery continued, “During the first quarter, we announced plans to acquire SterlingSouth Bank in Greensboro, North Carolina.  I am pleased to report that all integration planning, regulatory filings, and shareholder solicitations are on schedule.  As we become better acquainted with the Sterling employees and directors, it is even more obvious that combining the people, the cultures, and the commitment of these two organizations will create a banking institution that will be much greater than the sum of the parts.”

          BNC Bancorp is the parent company of Bank of North Carolina, a $624 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, High Point, Salisbury, Archdale, Lexington, Kernersville and Oak Ridge, North Carolina. In addition, the Bank operates commercial and mortgage loan production offices in Winston-Salem, Harrisburg, and northern Davidson County, 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

          From time to time, we make written and oral forward-looking statements within the meaning of certain securities laws, including in this press release, in other filings with the U.S. Securities and Exchange Commission, in reports to shareholders and in other communications. These forward-looking statements include, among others, statements with respect to our objectives for 2006, and the medium and long term strategies to achieve those objectives, as well as statements with respect to our beliefs, plans, expectations, anticipations, estimates and intentions.

          By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, the strength of the North Carolina economy in general and the strength of the local economies within North Carolina in which we conduct operations; the strength of the United States economy; the effects of changes in monetary and fiscal policy, including changes in interest rate policies of the Board of Governors of the Federal Reserve System in the United States; judicial decisions; the effects of competition in the markets in which we operate; inflation; the timely development and introduction of new products and services in receptive markets; the impact of changes in the laws and regulations regulating financial services (including banking, insurance and securities); changes in tax laws; technological changes; our ability to complete strategic acquisitions and to integrate acquisitions; judicial or regulatory proceedings; changes in consumer spending and saving habits; the possible impact on our businesses of international conflicts and other developments including those relating to the war on terrorism; and our anticipation of and success in managing the risks implicated by the foregoing.

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

	For the Three Months Ended
							% Change
	March 31, 2006			March 31, 2005
SUMMARY STATEMENTS OF OPERATIONS
Interest income	$	10,268		$	7,001			46.7	%
Interest expense		4,875			2,765			76.3
Net interest income		5,393			4,236			27.3
Provision for loan losses		520			480			8.3
Net interest income after provision for loan losses		4,873			3,756			29.7
Noninterest income		796			617			29.0
Noninterest expense		4,071			3,040			33.9
Income before income tax expense		1,598			1,333			19.9
Provision for income taxes		468			375			24.8
Net income		1,130			958			18.0
PER SHARE DATA
Earnings per share, basic	$	0.26		$	0.22			18.2	%
Earnings per share, diluted		0.24			0.21			14.3
Weighted average common shares outstanding:
Basic		4,374,255			4,359,340
Diluted		4,627,003			4,632,204
PERFORMANCE RATIOS
Return on average assets		0.76	%		0.76	%
Return on average equity		13.72	%		13.18	%
Return on average tangible equity		15.31	%		14.97	%
Net yield on earning assets (taxable equivalent)		4.07	%		3.82	%
Average equity to average assets		5.54	%		5.76	%
Allowance for loan losses as a % of total loans		1.25	%		1.28	%
Non-performing assets to total assets, end of period		0.41	%		0.27	%
Ratio of net charge-offs to average loans outstanding		0.02	%		0.05	%

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

	For the Three Months Ended
	March 31, 2006			Dec. 31, 2005			Sept. 30, 2005			June 30, 2005			March 31, 2005			Dec. 31 2004
SUMMARY
STATEMENTS OF OPERATIONS
Interest income	$	10,268		$	9,652		$	8,868		$	7,854		$	7,001		$	6,677
Interest expense		4,875			4,343			4,033			3,452			2,765			2,428
Net interest income		5,393			5,308			4,834			4,402			4,236			4,249
Provision for loan losses		520			900			610			525			480			560
Net interest income after provision for loan losses		4,873			4,408			4,224			3,877			3,756			3,689
Noninterest income		796			904			759			702			617			876
Noninterest expense		4,071			3,622			3,300			3,061			3,040			3,087
Income before income tax expense		1,598			1,690			1,683			1,518			1,333			1,478
Provision for income taxes		468			470			463			411			375			386
Net income		1,130			1,220			1,220			1,107			958			1,092
PER SHARE DATA
Earnings per share, basic	$	0.26		$	0.28		$	0.28		$	0.25		$	0.22		$	0.25
Earnings per share, diluted		0.24			0.26			0.26			0.24			0.21			0.24
Weighted average common shares outstanding:
Basic		4,374,255			4,367,005			4,358,032			4,365,735			4,359,340			4,346,559
Diluted		4,627,003			4,640,609			4,619,200			4,627,045			4,632,204			4,615,051
PERFORMANCE RATIOS
Return on average assets		0.76	%		0.83	%		0.85	%		0.82	%		0.76	%		0.88	%
Return on average equity		13.72	%		15.43	%		15.27	%		14.02	%		13.18	%		15.06	%
Return on average tangible equity		15.31	%		17.33	%		17.14	%		15.77	%		14.97	%		17.14	%
Net yield on earning assets (taxable equivalent)		4.07	%		4.17	%		3.89	%		3.82	%		3.82	%		3.81	%
Average equity to average assets		5.54	%		5.40	%		5.60	%		5.88	%		5.76	%		5.82	%

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

	As of
		March 31, 2006		March 31 2005,	% Change
SELECTED BALANCE SHEET DATA
End of period balances
Total loans	$	522,071	$	441,495	18.3	%
Allowance for loan losses		6,542		5,636	16.1
Loans, net of allowance for loan losses		515,529		435,859	18.3
Securities, available for sale		43,598		38,655	12.8
Total Assets		623,936		528,178	18.1
Deposits:
Noninterest-bearing deposits		48,190		40,954	17.7
Interest-bearing demand and savings		116,253		140,670	(17.4	)
CD’s and other time deposits		357,549		246,801	44.9
Total deposits		521,992		428,425	21.8
Borrowed Funds		64,628		67,561	(4.3	)
Total interest-bearing liabilities		538,430		455,032	18.3
Shareholders’ Equity		33,645		29,927	12.4

	As of
	March 31, 2006		Dec. 31, 2005		Sept. 30, 2005		June 30, 2005		March 31, 2005		Dec. 31, 2004
SELECTED BALANCE SHEET DATA
End of period balances
Total loans	$	522,071	$	499,247	$	476,735	$	461,808	$	441,495	$	420,838
Allowance for loan losses		6,542		6,140		6,130		5,948		5,636		5,361
Loans, net of allowance for loan losses		515,529		493,107		470,605		455,860		435,859		415,477
Securities, available for sale		43,598		42,489		41,560		41,618		38,655		35,428
Total Assets		623,936		594,550		578,755		563,299		528,178		497,549
Deposits:
Noninterest- bearing deposits		48,190		39,573		40,771		43,606		40,954		34,485
Interest- bearing demand and savings		116,253		128,303		123,412		132,823		140,670		151,272
CD’s and other time deposits		357,549		323,017		298,938		278,759		246,801		205,723
Total Deposits		521,992		490,893		463,121		455,188		428,425		391,480
Borrowed Funds		64,628		66,557		79,786		73,266		67,561		73,771
Total interest-bearing liabilities		538,430		517,877		502,136		484,848		455,032		430,766
Shareholders’ Equity		33,645		33,114		32,337		31,426		29,927		29,037

SOURCE  BNC Bancorp
          -0-                              04/27/2006
          /CONTACT:  W. Swope Montgomery, Jr., President and CEO of BNC Bancorp,
+1-336-476-9200/
          /Photo:  NewsCom:  http://www.newscom.com/cgi-bin/prnh/20030917/BNCLOGO
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          /Web site:  http://www.bankofnc.com/
          (BNCN)