Press Release
BNC Bancorp Reports 35% Increase in Fourth Quarter Net Income
Tuesday February 25, 9:01 am ET
THOMASVILLE, N.C., Feb. 25 /PRNewswire-FirstCall/ -- BNC Bancorp (OTC Bulletin
Board: BNCN - News) today reported operating results for both the three-month
and year then ended December 31, 2002.
For the three-month period ended December 31, 2002, the Bank reported net income
of $793,000, an increase of 35% when compared to the $588,000 reported for the
fourth quarter in 2001. Diluted earnings per share were $0.23 for the fourth
quarter, a 15% increase compared to the $0.20 reported for same period in 2001.
For the year ended December 31, 2002, the Bank reported net income of $2.6
million, an increase of 36% when compared to the $1.9 million reported for all
of 2001. Diluted earnings per share were $0.82 for the year ended December 31,
2002, an increase of 28% compared to the $0.64 reported for same period in 2001.
Total assets ended the year at $306.6 million, an increase of 46% compared to
the $210.3 million as of December 31, 2001. Total loans on December 31, 2002
were $242.6 million, an increase of 37% from the $176.6 million reported as of
December 31, 2001. Deposits increased 52% over the same one-year period.
Commenting on these results, W. Swope Montgomery, Jr., President and CEO, said,
"We are very pleased with the results for the fourth quarter and the year 2002.
During the year we acquired Independence Bank and effectively integrated their
operations without diluting our shareholders; we formed a holding company, BNC
Bancorp, to provide our organization with greater flexibility and options in our
pursuit of maximizing shareholder value; and we grew the Bank by approximately
$100 million while reporting earnings per share growth of 28% in a very tough
banking market. This has been a very successful year for our Company and its
shareholders. We are confident that as we continue to execute our long-term
plan, shareholders of BNC Bancorp will be pleased with our results."
BNC Bancorp recently announced that its Board of Directors had declared a cash
dividend for the year 2003 of $0.12 per share. The annual dividend will be paid
on February 28, 2003, to all shareholders of record on February 13, 2003.
BNC Bancorp is the parent company of Bank of North Carolina, a $306 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 and Oak Ridge,
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 over-the-counter bulletin
board market under the symbol "BNCN."
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 and share data)
PER SHARE DATA
Earnings per share, basic $0.25 $0.21 19.1 %
Earnings per share, diluted 0.23 0.20 15.0
Weighted average number of common shares outstanding:
Basic 3,228,799 2,858,167
Diluted 3,385,532 2,922,741
PERFORMANCE RATIOS
Return on average assets 1.09% 1.15%
Return on average equity 12.83% 12.53%
Return on average tangible equity 14.99% 12.53%
Net yield on earning assets
(taxable equivalent) 4.08% 4.18%
Efficiency ratio (taxable
equivalent) 62.38% 57.25%
Average tangible equity to average
assets 7.27% 9.18%
QUARTERLY PERFORMANCE SUMMARY
BNC BANCORP
(Dollars in thousands, except per
share and share data) As of / For the
Year Ended,
December 31, December 31, %
2002 2001 Change
SUMMARY STATEMENTS OF OPERATIONS
Interest income $15,929 $15,121 5.3 %
Interest expense 5,918 7,356 (19.5)
Net interest income 10,011 7,765 28.9
Provision for loan losses 820 815 0.6
Net interest income after
provision for loan losses 9,191 6,950 32.2
Noninterest income 2,348 1,461 60.7
Noninterest expense 7,772 5,654 37.5
Income before income tax expense 3,767 2,757 36.6
Provision for income taxes 1,157 842 37.4
Net income 2,610 1,915 36.3
PER SHARE DATA
Earnings per share, basic $0.85 $0.67 26.9 %
Earnings per share, diluted 0.82 0.64 28.1
Book value 7.78 6.61 17.8
Tangible book value 6.68 6.61 1.1
Weighted average number of common shares outstanding:
Basic 3,053,214 2,874,661
Diluted 3,181,977 3,014,645
PERFORMANCE AND ASSET QUALITY RATIOS
Return on average assets 1.02% 0.97%
Return on average equity 11.66% 10.50%
Return on average tangible equity 12.53% 10.50%
Net yield on earning assets
(taxable equivalent) 4.17% 4.13%
Efficiency ratio (taxable
equivalent) 62.28% 60.62%
Average equity to average assets 8.75% 9.24%
Allowance for loan losses as a
percentage of total loans, end of
period 1.78% 1.30%
Non-performing assets to total
assets, end of period 0.68% 0.20%
Ratio of net charge-offs to
average loans outstanding 0.38% 0.23%
QUARTERLY PERFORMANCE SUMMARY
BNC BANCORP
(Dollars in thousands)
As of
December 31, December 31, %
2002 2001 Change
SELECTED BALANCE SHEET DATA
End of period balances
Total loans $242,585 $176,632 37.3 %
Allowance for loan losses 4,306 2,292 87.9
Loans, net of allowance for loan
losses 238,279 174,340 36.7
Securities, available for sale 25,282 15,555 62.5
Total Assets 306,636 210,353 45.8
Deposits:
Noninterest-bearing
deposits 30,943 19,605 57.8
Interest-bearing demand and
savings 114,999 46,384 147.9
CD's and other time
deposits 113,604 104,466 8.7
Borrowed Funds 19,783 19,143 3.3
Total interest-bearing liabilities 248,386 169,993 46.1
Shareholders' Equity 25,169 19,222 30.9
Source: BNC Bancorp