HIGH POINT, N.C., Oct. 24, 2013 /PRNewswire/ -- BNC Bancorp
(NASDAQ: BNCN) ("Company"), parent company for Bank of North Carolina ("Bank"), today reported
financial results for the quarter ended September 30, 2013.
(Logo: http://photos.prnewswire.com/prnh/20030917/BNCLOGO)
For the quarter ended September 30,
2013, net income totaled $5.0
million, an increase of 7.8% compared to net income of
$4.7 million for the quarter ended
June 30, 2013, and an increase of
262.1% compared to net income of $1.4
million for the third quarter of 2012. Net income
available to common shareholders for the quarter ended September 30, 2013 was $5.0 million, or $0.19 per diluted share, an increase of 21.6%
compared to net income available to common shareholders of
$4.1 million, or $0.16 per diluted share, for the quarter ended
June 30, 2013, and an increase of
538.3% compared to net income available to common shareholders of
$788,000, or $0.04 per diluted share, for the third quarter of
2012.
For the nine months ended September 30,
2013, net income totaled $14.0
million, an increase of 158.6% when compared to net income
of $5.4 million for the nine months
ended September 30, 2012. Net
income available to common shareholders for the nine months ended
September 30, 2013 was $12.9 million, or $0.49 per diluted share, an increase of 258.6%
compared to net income available to common shareholders of
$3.6 million, or $0.25 per diluted share, for the nine months
ended September 30, 2012. The
financial results for the nine months ended September 30, 2012 include $7.7 million of pre-tax bargain purchase gain the
Company recorded on the acquisition of Carolina Federal Savings
Bank.
Average common shares outstanding increased significantly during
the second half of 2012 as a result of the conversion of the
Company's preferred stock to common stock, as well as common stock
issued in connection with the acquisitions of KeySource Financial
("KeySource") and First Trust Bank ("First Trust"). For the
nine months ended September 30, 2013
and 2012, average fully-diluted shares outstanding were 26.5
million and 15.4 million, respectively.
Total assets at September 30, 2013
were $2.97 billion, a decrease of
3.7% as compared to total assets of $3.08
billion at December 31,
2012. During the first nine months of 2013, the Company
utilized excess liquidity to primarily repay wholesale and non-core
deposits as they matured. The Company's success in reducing this
inefficient component of the acquired balance sheets has resulted
in a decline in total assets during the first nine months of
2013. This deleveraging has helped the Company execute on its
strategic initiative to improve capital ratios and net interest
margin. Excess liquidity was also used to purchase higher
yielding investment securities, which has also contributed to the
improved net interest margin.
On October 1, 2013, the Company
completed the previously announced merger with Randolph Bank & Trust Company
("Randolph"). None of the assets acquired, liabilities
assumed or results of operations for Randolph are included in the
financial information for the three and nine months ended
September 30, 2013.
Highlights for Quarter Ended September
30, 2013:
- Diluted earnings per share of $0.19, an increase of 375% compared to the third
quarter of 2012;
- Net income available to common shareholders of $5.0 million, an increase of 538.3% compared to
the third quarter of 2012;
- Nonperforming assets decreased 13.4% from June 30, 2013;
- Loans not recorded at fair value increased 6.9% from
June 30, 2013;
- Fully taxable-equivalent net interest margin increased to
4.26%, compared to 3.75% for the third quarter of 2012;
- Fully taxable-equivalent net interest margin, before hedging
costs, increased to 4.65%, compared to 4.11% for the third quarter
of 2012;
- Tangible common equity ratio of 7.71% at September 30, 2013, compared to 6.48% at
September 30, 2012; and
- Opened new branch in Murrells
Inlet, further expanding our footprint in coastal
South Carolina.
Richard D. Callicutt II,
President and CEO, stated, "I am pleased to report another strong
quarter, with earnings per share of $0.19 on a GAAP basis, and $0.20 on a non-GAAP or core basis, loan growth
accelerating significantly compared to recent quarters, and
revenues from our mortgage department remaining stable despite an
industry-wide slowdown in refinancing activity. Our
shareholders continue to reap the benefits from the expansion and
integration efforts over the past four years, both in terms of
improving levels of profitability and organic growth. The
recently closed acquisition of Randolph
Bank & Trust, the branch opening in Murrells Inlet, and the announced branch
openings in Charleston and
Raleigh are additional steps in
our strategic initiative to expand within our existing markets and
create meaningful long-term shareholder value."
Operating Results
Fully taxable-equivalent ("FTE") net interest income for the
third quarter of 2013 was $28.5
million, an increase of 1.5% from $28.0 million for the second quarter of 2013, and
an increase of 34.9% from $21.1
million for the third quarter of 2012. FTE net
interest margin was 4.26% for the third quarter of 2013, a decrease
of 6 basis points from 4.32% for the second quarter of 2013, and an
increase of 51 basis points from 3.75% for the third quarter of
2012. FTE net interest income for the nine months ended
September 30, 2013 was $83.9 million, an increase of 38.3% from
$60.7 million for the nine months
ended September 30, 2012. FTE
net interest margin was 4.26% for the nine months ended
September 30, 2013, an increase of 51
basis points from 3.75% for the comparable period of
2012.
Average interest-earning assets were $2.65 billion for the third quarter of 2013, an
increase of 1.8% from $2.60 billion
during the second quarter of 2013, and an increase of 18.5% from
$2.24 billion for the third quarter
of 2012. The increase from the second quarter of 2013 was
primarily due to increased loan, as well as an increase in
investment securities purchased with the Company's excess liquidity
during the third quarter of 2013. Average interest-earning
assets were $2.63 billion for the
nine months ended September 30, 2013,
an increase of 22.0% from $2.16
billion for the nine months ended September 30, 2012. The increase in average
interest-earning assets from 2012 is primarily due to
interest-earning assets acquired from First Trust and KeySource
during the second half of 2012, as well as increased loan
production during the first nine months of 2013.
The Company's average yield on interest-earning assets decreased
9 basis points to 5.36% for the third quarter of 2013 from 5.45%
for the second quarter of 2013, and increased 17 basis points from
5.19% for the third quarter of 2012. The decrease from second
quarter of 2013 was primarily due to lower interest rates earned on
new loan production, as well as a decrease in loan accretion
recorded during the third quarter of 2013. The increase from
the third quarter of 2012 was due to increased interest rates
earned on portfolio loans, as well as increased level of loan
accretion from the acquired loan portfolios. Loan accretion
during the third quarter of 2013 totaled $3.2 million, a decrease of 12.3% from loan
accretion of $3.7 million for the
second quarter of 2013, and an increase of 200.8% from $1.1 million of accretion recorded in the third
quarter of 2012.
The Company's average yield on interest-earning assets was 5.38%
for the nine months ended September 30,
2013, an increase of 9 basis points compared to 5.29% for
the comparable period of 2012. The increase from 2012 was due
to higher interest rates on portfolio loans, as well as increased
level of loan accretion from the acquired loan portfolios.
Loan accretion during the nine months ended September 30, 2013 totaled $10.2 million, an increase of 186.2% from loan
accretion of $3.6 million for the
nine months ended September 30,
2012.
Average interest-bearing liabilities were $2.38 billion for the third quarter of 2013, an
increase of 0.9% from $2.36 billion
for the second quarter of 2013, and an increase of 15.0% from
$2.07 billion for the third quarter
of 2012. The increase from the second quarter of 2013 was due
to increased borrowings during the third quarter of 2013, offset by
the continued repayment of higher rate time and transaction
deposits and replacement of these deposits at lower rates.
Average interest-bearing liabilities were $2.39 billion for the nine months ended
September 30, 2013, an increase of
15.2% from $2.07 billion for the
comparable period of 2012. The increase in average
interest-bearing liabilities from 2012 is primarily due to the
acquisitions of First Trust and KeySource during the second half of
2012.
The Company's average cost of interest-bearing liabilities was
1.23% for the third quarter of 2013, a slight decrease from 1.25%
for the second quarter of 2013, and a decrease of 32 basis points
from 1.55% for the third quarter of 2012. The decrease was
due to the Company's continued effort to reduce exposure to higher
cost deposit products, as well as lower interest rates paid on
borrowings, which was offset by continued increases in cash flow
hedging expense. For the third quarter of 2013, cash flow
hedging expenses totaled $2.6
million, compared to $2.3
million for the second quarter of 2013 and $2.0 million for the third quarter of 2012.
Without the cash flow hedging expense, FTE net interest margin for
the third quarter of 2013 was 4.65%, compared to 4.68% for the
second quarter of 2013 and 4.11% for the third quarter of
2012.
The Company's average cost of interest-bearing liabilities was
1.24% for the nine months ended September
30, 2013, a decrease of 36 basis points from 1.60% for the
comparable period of 2012. This decrease was primarily due to
the Company's decision to reduce exposure to higher cost deposit
products and aggressively reduce deposit rates over the past three
quarters, as well as reductions in interest rates paid on
borrowings. These rate decreases were slightly offset by an
increase in cash flow hedging expense, which totaled $7.2 million for the nine months ended
September 30, 2013, compared to
$5.8 million for the comparable
period of 2012. Without the cash flow hedging expense, FTE
net interest margin for the nine months ended September 30, 2013 was 4.54%, compared to 4.11%
for the comparable period of 2012.
Average Yields /
Costs (FTE)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
9/30/2013
|
|
6/30/2013
|
|
9/30/2012
|
|
9/30/2013
|
|
9/30/2012
|
Earning asset
yield
|
5.36%
|
|
5.45%
|
|
5.19%
|
|
5.38%
|
|
5.29%
|
Cost of
interest-bearing liabilities
|
1.23%
|
|
1.25%
|
|
1.55%
|
|
1.24%
|
|
1.60%
|
Cost of
funds
|
1.10%
|
|
1.12%
|
|
1.42%
|
|
1.11%
|
|
1.47%
|
Net interest
spread
|
4.13%
|
|
4.20%
|
|
3.64%
|
|
4.14%
|
|
3.69%
|
Net interest
margin
|
4.26%
|
|
4.32%
|
|
3.75%
|
|
4.26%
|
|
3.75%
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
w/o hedging expense
|
4.65%
|
|
4.68%
|
|
4.11%
|
|
4.54%
|
|
4.11%
|
|
|
|
|
|
|
|
|
|
|
Non-interest income was $5.8
million for the third quarter of 2013, an increase of 4.0%
compared to $5.6 million for the
second quarter of 2013, and an increase of 10.9% from $5.3 million for the third quarter of 2012.
Excluding the insurance settlement, acquisition gains (includes
bargain purchase gains and income related to the subsequent
settlement of a liability assumed in an acquisition), FDIC-related
income and gain (loss) on sale of securities, adjusted non-interest
income was $5.2 million for the third
quarter of 2013, a decrease of 1.5% from $5.3 million for the second quarter of 2013, and
an increase of 34.6% from $3.9
million for the third quarter of 2012. Despite an
increase in mortgage rates which has caused a significant decline
in refinance activity, mortgage origination fees remained stable
due to mortgage origination activity being heavily weighted to
purchase volume in the second and third quarters of 2013.
Other non-interest income was positively impacted by a $479,000 pre-tax gain as a result of an insurance
settlement, as well as $508,000 of
income related to the recovery of fair value adjustments previously
recorded on acquired loans.
For the nine months ended September 30,
2013, non-interest income was $17.6
million, a decrease of 22.5% compared to non-interest income
of $22.7 million for the nine months
ended September 30, 2012.
Excluding the insurance settlement, acquisition gains, FDIC-related
income and gain (loss) on sale of securities, adjusted non-interest
income was $16.2 million for the nine
months ended September 30, 2013, an
increase of 43.1% from $11.3 million
for the comparable period of 2012. The increase was primarily
due to increased volume of mortgage originations, as the Company
continued to expand commissioned originators across key target
markets.
Non-interest expense was $22.4
million for the third quarter of 2013, a decrease of 5.6%
compared to non-interest expense of $23.8
million for the second quarter of 2013, and an increase of
10.0% from $20.4 million for the
third quarter of 2012. Excluding transaction-related costs,
adjusted non-interest expense for the third quarter of 2013 was
$21.9 million, a decrease of 6.7%
from $23.5 million for the second
quarter of 2013, and an increase of 18.1% from $18.5 million for the third quarter of
2012. Transaction-related costs include legal and
professional fees, personnel costs, data processing expenses, and
other miscellaneous expenses directly attributable to the
transaction. The decrease from the second quarter of 2013 was
primarily due to a $400,000 decrease
in valuation adjustments for other real estate owned ("OREO"), as
well as reductions in advertising and business development and
other loan and credit collection fees. The increase from the
third quarter of 2012 was primarily due to an increased number of
employees and facilities purchased in connection with the
acquisitions of First Trust and KeySource during the second half of
2012.
Non-interest expense was $69.3
million for the first nine months of 2013, an increase of
20.7% from $57.4 million for the
first nine months of 2012. Excluding transaction-related
costs, adjusted non-interest expense for the nine months ended
September 30, 2013 was $67.4 million, an increase of 25.8% from
$53.6 million for the nine months
ended September 30, 2012. The
increase from 2012 was primarily due to an increased number of
employees and facilities purchased in connection with the
acquisitions of First Trust and KeySource during the second half of
2012.
Non-Interest
Income / Non-Interest Expense
|
(dollars in
thousands; unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
9/30/2013
|
|
6/30/2013
|
|
9/30/2012
|
|
9/30/2013
|
|
9/30/2012
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
Mortgage
fees
|
$
2,408
|
|
$
2,480
|
|
$
1,773
|
|
$
,269
|
|
$
4,267
|
Service
charges
|
1,000
|
|
1,034
|
|
746
|
|
2,960
|
|
2,233
|
Earnings on
bank-owned life insurance
|
571
|
|
542
|
|
425
|
|
1,672
|
|
1,230
|
Gain (loss)
on sale of securities
|
-
|
|
176
|
|
756
|
|
(52)
|
|
2,375
|
Bargain
purchase gain on acquisitions
|
-
|
|
-
|
|
-
|
|
-
|
|
7,734
|
Other
|
1,845
|
|
1,370
|
|
1,553
|
|
5,779
|
|
4,905
|
Total non-interest
income
|
$
5,824
|
|
$
5,602
|
|
$
5,253
|
|
$
17,628
|
|
$
22,744
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits
|
$
12,399
|
|
$
12,728
|
|
$
9,851
|
|
$
37,467
|
|
$
28,874
|
Occupancy
|
1,666
|
|
1,507
|
|
1,240
|
|
4,856
|
|
3,438
|
Furniture and
equipment
|
1,351
|
|
1,260
|
|
993
|
|
3,990
|
|
3,019
|
Data
processing and supply
|
854
|
|
720
|
|
619
|
|
2,297
|
|
1,903
|
Advertising
and business development
|
228
|
|
610
|
|
457
|
|
1,425
|
|
1,220
|
Insurance,
professional and other
services
|
1,111
|
|
1,148
|
|
815
|
|
3,160
|
|
2,174
|
FDIC insurance
assessments
|
660
|
|
780
|
|
609
|
|
2,106
|
|
1,709
|
Loan,
foreclosure and other real
estate owned
|
1,962
|
|
2,876
|
|
2,658
|
|
6,856
|
|
7,279
|
Transaction-related expenses
|
540
|
|
309
|
|
1,861
|
|
1,884
|
|
3,806
|
Other
|
1,659
|
|
1,821
|
|
1,296
|
|
5,264
|
|
3,979
|
Total non-interest
expense
|
$
22,430
|
|
$
23,759
|
|
$
20,399
|
|
$
69,305
|
|
$
57,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is a summary of transaction-related expenses
incurred by transaction:
Transaction-Related Expenses
|
|
(dollars in
thousands; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
Transaction
|
9/30/2013
|
|
6/30/2013
|
|
9/30/2012
|
|
|
9/30/2013
|
|
9/30/2012
|
|
Blue Ridge
Savings Bank
|
$
-
|
|
$
-
|
|
$
75
|
|
|
$
-
|
|
$
819
|
|
Regent
Bank
|
-
|
|
-
|
|
1
|
|
|
-
|
|
429
|
|
Carolina
Federal
|
-
|
|
-
|
|
352
|
|
|
111
|
|
537
|
|
KeySource
|
-
|
|
-
|
|
950
|
|
|
76
|
|
1,339
|
|
BHR
|
-
|
|
-
|
|
105
|
|
|
-
|
|
136
|
|
First
Trust
|
21
|
|
-
|
|
141
|
|
|
869
|
|
309
|
|
Randolph
|
519
|
|
309
|
|
-
|
|
|
828
|
|
-
|
|
CPP/TARP*
|
-
|
|
-
|
|
237
|
|
|
-
|
|
237
|
|
Total
|
$
540
|
|
$
309
|
|
$
1,861
|
|
|
$
1,884
|
|
$
3,806
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* - Costs associated
with auction of CPP preferred stock and repurchase of warrant from
U.S. Treasury
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Operating Highlights
Total portfolio loans increased by 2.5% from June 30, 2013 and 3.2% from December 31, 2012 to $2.10
billion as of September 30,
2013. The increase has primarily been in commercial real
estate and commercial construction loans as the economic outlook in
the Company's markets continues to improve. Loans not
recorded at fair value increased 6.9% from June 30, 2013. Included in the increase in
loans not recorded at fair value from June
30, 2013 is $27.8 million of
loans that have transferred from another loan category.
Excluding these transfers, loans not recorded at fair value
increased 5.2% from June 30,
2013. The table below outlines the Company's loan portfolio
mix between covered and non-covered loans for the past five
quarters.
|
Gross Loan
Growth
|
|
(dollars in
thousands; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
9/30/2013
|
|
6/30/2013
|
|
3/31/2013
|
|
12/31/2012
|
|
9/30/2012
|
Loans covered by loss
share, at fair value
|
$
183,887
|
|
$
202,073
|
|
$
224,056
|
|
$
248,930
|
|
$
269,388
|
Loans not covered by
loss share, at fair value
|
219,671
|
|
260,542
|
|
270,149
|
|
327,674
|
|
180,989
|
Loans, other
(1)
|
1,696,484
|
|
1,586,326
|
|
1,536,944
|
|
1,458,654
|
|
1,450,015
|
Total portfolio
loans
|
$
2,100,042
|
|
$
2,048,941
|
|
$
2,031,149
|
|
$
2,035,258
|
|
$
1,900,392
|
|
|
|
|
|
|
|
|
|
|
Change in balance
(quarter/quarter):
|
|
|
|
|
|
|
|
|
|
Total
portfolio loans
|
2.5%
|
|
0.9%
|
|
-0.2%
|
|
7.1%
|
|
8.0%
|
Loans,
other
|
6.9%
|
|
3.2%
|
|
5.4%
|
|
0.6%
|
|
1.7%
|
Annual growth of
loans not covered under loss-share
|
17.5%
|
|
|
|
|
|
|
|
|
Total deposits at September 30,
2013 were $2.44 billion, a
decrease of 8.3% from total deposits of $2.66 billion as of December 31, 2012. This decrease was
primarily due to the Company's decision to utilize excess liquidity
and the acquired securities portfolios to repay wholesale and
non-core deposits as they matured, as well as aggressively reducing
time deposit rates over the past three fiscal quarters.
Wholesale deposits were 33.8% of total deposits at September 30, 2013, an increase compared to 28.4%
as of December 31, 2012.
Transactional accounts, which are comprised of non-interest bearing
and interest-bearing demand accounts, increased $196.4 million, or 15.4%, over the past twelve
months. At September 30, 2013,
time deposits were 39.6% of total deposits, compared to 43.7% at
December 31, 2012.
|
Total Deposit
Growth
|
|
(dollars in
thousands; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
9/30/2013
|
|
6/30/2013
|
|
3/31/2013
|
|
12/31/2012
|
|
9/30/2012
|
Non-interest bearing
demand
|
$
299,670
|
|
$
275,984
|
|
$
267,458
|
|
$
275,605
|
|
$
207,928
|
Interest-bearing
demand
|
1,172,512
|
|
1,152,779
|
|
1,171,484
|
|
1,221,089
|
|
1,067,855
|
Time
deposits
|
963,679
|
|
999,552
|
|
1,069,207
|
|
1,159,615
|
|
1,033,304
|
Total
|
$
2,435,861
|
|
$
2,428,315
|
|
$
2,508,149
|
|
$
2,656,309
|
|
$
2,309,087
|
|
|
|
|
|
|
|
|
|
|
Change in balance
(quarter/quarter)
|
0.3%
|
|
-3.2%
|
|
-5.6%
|
|
15.0%
|
|
10.5%
|
|
|
|
|
|
|
|
|
|
|
Annual deposit
growth
|
5.5%
|
|
|
|
|
|
|
|
|
Total borrowings at September 30,
2013 were $256.6 million, an
increase of 112.8% from total borrowings of $120.6 million as of December 31, 2012. At September 30, 2013, $143.7
million of these borrowings were short-term, while the
remaining $112.9 million were
long-term. The increase in borrowings was primarily due to
$109.5 million of additional
short-term borrowings from the Federal Home Loan Bank, which were
used to repay wholesale and non-core deposits as part of the
Company's deleveraging strategy, as well as a $30.0 million term loan obtained from Synovus
Bank for the repurchase of Series A preferred stock. Upon
closing of the acquisition of Randolph, the Company utilized
$85.0 million of liquid assets to
repay the short-term borrowings from the Federal Home Loan
Bank.
Asset Quality
Net loan charge-offs for the third quarter of 2013 were
$4.8 million, which included
$2.4 million on loans covered under
loss-share agreements and $2.4
million on loans not covered under loss-share
agreements. The Company's share of the covered net loan
charge-offs was $500,000, with the
remainder being reimbursed by the FDIC. Combined with the
$2.4 million of non-covered net
charge-offs, the Company incurred $2.9
million in net charge-off losses, or 0.55% of average loans,
during the third quarter of 2013, compared to $3.9 million, or 0.78% of average loans, for the
second quarter of 2013, and $6.9
million, or 1.54% of average loans, for the third quarter of
2012.
Net loan charge-offs for the nine months ended September 30, 2013 were $20.3 million, which included $11.1 million on loans covered under loss-share
agreements and $9.2 million on loans
not covered under loss-share agreements. The Company's share
of the covered net loan charge-offs for the nine months ended
September 30, 2013 was $2.2 million, with the remainder being reimbursed
by the FDIC. Combined with the $9.2
million of non-covered net charge-offs, the Company incurred
$11.4 million in net charge-off
losses, or 0.75% of average loans, during the nine months ended
September 30, 2013, compared to
$24.9 million, or 1.21% of average
loans, for the comparable period of 2012.
During the third quarter of 2013, the Company recorded a
provision for loan losses of $3.4
million, an increase of 46.4% from $2.3 million recorded in the second quarter of
2013, and a decrease of 9.7% from $3.7
million recorded during the third quarter of 2012. Of
the $3.4 million in provision
expense, $3.1 million related to
non-covered loans. During the three months ended September 30, 2013, the Company recorded a gross
provision of $1.2 million for
loss-share loans, of which $900,000
was recorded through a FDIC indemnification asset and the remaining
$300,000 was recorded through the
Company's provision expense.
During the nine months ended September
30, 2013, the Company recorded a provision for loan losses
of $9.8 million, a decrease of 43.4%
from $17.2 million recorded in the
comparable period of 2012. Of the $9.8
million in provision expense, $9.1
million related to non-covered loans. During the nine
months ended September 30, 2013, the
Company recorded a gross provision of $3.2
million for loss-share loans, of which $2.5 million was recorded through a FDIC
indemnification asset and the remaining $700,000 was recorded through the Company's
provision expense.
The allowance for loan losses was $32.4
million at September 30, 2013,
a decrease of 19.7% from $40.3
million at December 31,
2012. Loan loss reserves to total portfolio loans were 1.54%
and 1.98% at September 30, 2013 and
December 31, 2012,
respectively. The allowance for loan loss allocated to loans
not marked to fair value was 1.46% and 1.72% at September 30, 2013 and December 31, 2012, respectively. The
components of the allowance for loan loss as of September 30, 2013 were as follows:
|
Allowance for Loan
Loss Summary
|
|
(dollars in
thousands; unaudited)
|
|
At September 30,
2013
|
|
|
|
|
|
|
|
Allowance
|
|
|
|
Allowance
|
|
|
|
for
|
|
|
|
for
|
|
Net
|
|
Loan
Losses
|
|
Loans
|
|
Loan
Losses
|
|
Loans
|
|
%
|
Loans covered under
loss-share agreements, at fair value
|
$
183,887
|
|
$
(7,403)
|
|
$
176,484
|
|
4.03%
|
Loans not covered
under loss-share agreements, at fair value
|
219,671
|
|
(234)
|
|
219,437
|
|
0.11%
|
Loans, other
(1)
|
1,696,484
|
|
(24,721)
|
|
1,671,763
|
|
1.46%
|
Total portfolio
loans
|
$
2,100,042
|
|
$
(32,358)
|
|
$
2,067,684
|
|
1.54%
|
|
|
|
|
|
|
|
|
(1) Includes $17,912
of loans covered by loss-share agreements not recorded at fair
value at September 30, 2013
|
Nonperforming assets, which consist of nonaccrual loans, loans
90 days or more past due and OREO, were 3.33% of total assets at
September 30, 2013, compared to 3.93%
at December 31, 2012.
Nonperforming assets not covered by loss-share were 1.84% of total
assets not covered by loss-share as of September 30, 2013, compared to 1.82% at
December 31, 2012. The covered
assets are covered by FDIC loss-share agreements that provide 80%
protection on those assets and are being carried at estimated fair
value.
|
Asset Quality
Information
|
|
(dollars in
thousands; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
9/30/2013
|
|
6/30/2013
|
|
3/31/2013
|
|
12/31/2012
|
|
9/30/2012
|
Nonaccrual loans not
covered by loss-share
|
$
21,264
|
|
$
22,276
|
|
$
27,212
|
|
$
22,442
|
|
$
25,220
|
Nonaccrual loans
covered by loss-share
|
29,892
|
|
44,317
|
|
52,274
|
|
46,981
|
|
54,427
|
OREO not covered by
loss-share
|
29,271
|
|
29,143
|
|
31,177
|
|
28,811
|
|
25,589
|
OREO covered by
loss-share
|
18,401
|
|
17,668
|
|
20,709
|
|
23,102
|
|
30,077
|
90 days past due not
covered by loss-share
|
83
|
|
823
|
|
-
|
|
-
|
|
4,137
|
90 days past due
covered by loss-share
|
1
|
|
-
|
|
-
|
|
-
|
|
1
|
Total nonperforming
assets
|
$
98,912
|
|
$
114,227
|
|
$
131,372
|
|
$
121,336
|
|
$
139,451
|
Nonperforming
assets not covered by loss-share
|
$
50,618
|
|
$
52,242
|
|
$
58,389
|
|
$
51,253
|
|
$
54,946
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
2,968,709
|
|
$
2,929,636
|
|
$
2,929,191
|
|
$
3,083,788
|
|
$
2,711,173
|
Total assets less
covered assets
|
2,748,509
|
|
2,692,686
|
|
2,670,691
|
|
2,811,756
|
|
2,411,708
|
|
|
|
|
|
|
|
|
|
|
Total portfolio
loans
|
2,100,042
|
|
2,048,941
|
|
2,031,149
|
|
2,035,258
|
|
1,900,392
|
Total accruing
loans
|
2,048,886
|
|
1,982,348
|
|
1,951,663
|
|
1,965,835
|
|
1,820,745
|
Total portfolio loans
less fair value loans
|
1,696,484
|
|
1,586,326
|
|
1,536,944
|
|
1,458,654
|
|
1,450,015
|
Total portfolio loans
less covered loans
|
1,898,243
|
|
1,829,659
|
|
1,793,358
|
|
1,786,328
|
|
1,631,004
|
|
|
|
|
|
|
|
|
|
|
Total allowance for
loan losses
|
32,358
|
|
32,859
|
|
38,148
|
|
40,292
|
|
34,823
|
Allowance for loans
not covered by loss-share
|
24,721
|
|
24,218
|
|
24,966
|
|
25,028
|
|
24,831
|
Allowance for loans
covered by loss-share
|
7,403
|
|
8,641
|
|
13,182
|
|
15,264
|
|
9,992
|
Allowance for
acquired loans not covered by loss-share
|
234
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Ratio of
nonperforming assets to total assets
|
3.33%
|
|
3.90%
|
|
4.48%
|
|
3.93%
|
|
5.14%
|
Not covered by
loss-share
|
1.84%
|
|
1.94%
|
|
2.19%
|
|
1.82%
|
|
2.28%
|
|
|
|
|
|
|
|
|
|
|
Ratio of
nonperforming loans to total portfolio loans
|
2.44%
|
|
3.29%
|
|
3.91%
|
|
3.41%
|
|
4.41%
|
Not covered by
loss-share
|
1.12%
|
|
1.26%
|
|
1.52%
|
|
1.26%
|
|
1.80%
|
|
|
|
|
|
|
|
|
|
|
Ratio of allowance
for loan losses to total portfolio loans
|
1.54%
|
|
1.60%
|
|
1.88%
|
|
1.98%
|
|
1.83%
|
Total portfolio loans
less fair value loans to allowance not
covered by loss-share
|
1.46%
|
|
1.53%
|
|
1.62%
|
|
1.72%
|
|
1.71%
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs,
QTD
|
$
4,788
|
|
$
7,351
|
|
$
8,172
|
|
$
6,269
|
|
$
10,099
|
Net charge-offs,
non-covered portion, QTD (1)
|
2,876
|
|
3,949
|
|
4,604
|
|
3,792
|
|
6,883
|
Ratio of net
charge-offs, non-covered portion,
|
|
|
|
|
|
|
|
|
|
QTD to average portfolio loans, annualized (1)
|
0.55%
|
|
0.78%
|
|
0.92%
|
|
0.78%
|
|
1.54%
|
|
|
|
|
|
|
|
|
|
|
Loans
restructured/modified not included in above,
|
|
|
|
|
|
|
|
|
|
(not 90 days
past due or on nonaccrual)
|
$
13,719
|
|
$
12,639
|
|
$
10,896
|
|
$
35,889
|
|
$
34,195
|
|
|
|
|
|
|
|
|
|
|
(1) Non-covered
portion represents the Company's non-covered charge-offs and the
20% portion of the charge-offs relating to loans covered
under loss-share agreements.
|
Nonaccrual loans not covered by loss-share agreements totaled
$21.3 million at September 30, 2013, a decrease of 5.2% from
$22.4 million at December 31, 2012. Excluding loans covered
by loss-share agreements, nonperforming loans as a percentage of
total loans was 1.12% as of September 30,
2013, as compared to 1.26% as of December 31, 2012. Nonaccrual loans covered by
loss-share agreements totaled $29.9
million as of September 30,
2013, a decrease of 36.4% from $47.0
million at December 31,
2012. The decrease is due to the Company's sustained efforts
in resolving acquired nonperforming loans.
Troubled debt restructurings ("TDRs") were $19.4 million as of September 30, 2013, of which $3.0 million was covered under loss-share.
Of the $19.4 million of TDRs,
$13.7 million are performing under
the terms of the restructured agreements, as compared to
$44.9 million of TDRs as of
December 31, 2012, of which
$35.9 million were performing under
the terms of the restructured agreements. The decrease in
performing TDRs was primarily due to a significant amount of
restructurings that are no longer required to be reported as TDRs
due to contractual performance over a passage of time.
OREO at September 30, 2013 totaled
$47.7 million, which is a decrease of
8.2% from $51.9 million at
December 31, 2012. At
September 30, 2013, the carrying
value of OREO covered by loss-share agreements was $18.4 million, a decrease of 20.3% from
$23.1 million at December 31, 2012. OREO not covered by
loss-share agreements totaled $29.3
million at September 30, 2013,
a slight increase from $28.8 million
at December 31, 2012. Of the
$29.3 million in non-covered OREO at
September 30, 2013, $3.2 million was acquired from our recent
acquisitions. The Company has sold $6.8 million and $25.1
million of OREO properties during the three and nine months
ended September 30, 2013,
respectively, which was offset by $8.5 and $22.6
million of additions to OREO. For the three and nine
months ended September 30, 2013, the
Company recorded valuation adjustments of $1.1 million and $3.5
million, respectively, an increase from valuation
adjustments of $1.6 million and
$4.3 million for the three and nine
months ended September 30, 2012,
respectively.
Capital Position
On September 30, 2013,
shareholders' equity was $257.8
million, a decrease of 8.7% from shareholders' equity of
$282.2 million as of December 31, 2012. In April 2013, the Company closed on a $30.0 million term loan and used the proceeds to
redeem the $31.3 million of Series A
preferred stock. As a result of this redemption, the Company
recorded $356,000 of additional
discount accretion during the second quarter of 2013. After
this redemption and the conversion of 1,804,566 shares of Series B
preferred stock to non-voting common stock in February 2013, the Company no longer has any
preferred stock issued or outstanding.
All of the Bank's and Company's capital ratios exceeded the
minimum thresholds established for a well-capitalized bank by
regulatory measures.
About BNC Bancorp and Bank of North
Carolina
Headquartered in High Point,
NC, BNC Bancorp is the parent company of Bank of
North Carolina, a commercial bank
with approximately $3.20 billion in
assets (subsequent to the acquisition of Randolph on October 1, 2013). Bank of North Carolina provides a complete line of
banking and financial services to individuals and businesses
through its 39 banking offices in North and South Carolina (including six branches
acquired from Randolph). The Bank's eight locations in
South Carolina operate as BNC
Bank. Bank of North Carolina
is insured by the FDIC and is an equal housing lender. BNC
Bancorp's stock is traded and quoted in the NASDAQ Capital Market
under the symbol "BNCN."
Non-GAAP Financial Measures
This press release contains financial information determined
by methods other than in accordance with accounting principles
generally accepted in the United States. BNC Bancorp's
management uses these "non-GAAP" measures in their analysis of the
Company's performance. Management believes that these
non-GAAP financial measures provide a greater understanding of
ongoing operations and enhance comparability of results with prior
periods as well as demonstrating the effects of significant gains
and charges in the current period. These disclosures should not be
viewed as a substitute for operating results determined in
accordance with GAAP, nor are they necessarily comparable to
non-GAAP performance measures that may be presented by other
companies. See the attached tabular disclosures for a
reconciliation of these non-GAAP measures to the most directly
comparable GAAP measure.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995:
Congress passed the Private Securities Litigation Act of 1995
in an effort to encourage corporations to provide information about
companies' anticipated future financial performance. This act
provides a safe harbor for such disclosure, which protects the
companies from unwarranted litigation if actual results are
different from management expectations. This press release
contains forward-looking statements relating to the financial
condition, results of operations and business of BNC Bancorp and
the Bank. These forward-looking statements involve risks and
uncertainties and are based on the beliefs and assumptions of the
management of BNC Bancorp, and the information available to
management at the time that this press release was prepared.
Factors that could cause actual results to differ materially from
those contemplated by such forward-looking statements include,
among others, the following: (i) the economic recovery may
face challenges causing its momentum to falter or a further
recession; (ii) expected cost savings and other benefits
anticipated in connection with our acquisitions may not be fully
realized or realized within the expected time frame; (iii) our
ability to integrate acquisitions and retain existing customers and
attract new ones; and (iv) adverse changes in credit quality
trends. Additional factors affecting BNC Bancorp and the Bank
are discussed in BNC Bancorp's filings with the Securities and
Exchange Commission (the "SEC"), Annual Report on Form 10-K, its
Quarterly Reports on Form 10-Q and its Current Reports on Form
8-K. Please refer to the Securities and Exchange Commission's
website at www.sec.gov where you can review those
documents. BNC Bancorp does not undertake a duty to update
any forward-looking statements made in this press
release.
PERFORMANCE
SUMMARY
|
|
|
|
|
|
BNC
BANCORP
|
|
|
|
|
|
(Dollars in
thousands, except per share data, shares in thousands)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
September 30,
2013
|
|
September 30,
2012
|
|
% Change
|
SUMMARY INCOME
STATEMENTS
|
|
|
|
|
|
|
Interest
income
|
$
34,008
|
|
$
27,814
|
|
22.3 %
|
|
Interest
expense
|
7,372
|
|
8,063
|
|
(8.6)
|
|
Net interest
income
|
26,636
|
|
19,751
|
|
34.9
|
|
Provision for loan
losses
|
3,350
|
|
3,708
|
|
(9.7)
|
|
Net interest income
after provision for loan losses
|
23,286
|
|
16,043
|
|
45.2
|
|
Non-interest
income
|
5,824
|
|
5,253
|
|
10.9
|
|
Non-interest
expense
|
22,430
|
|
20,399
|
|
10.0
|
|
Income before income
tax expense (benefit)
|
6,680
|
|
897
|
|
644.7
|
|
Income tax expense
(benefit)
|
1,650
|
|
(492)
|
|
(435.4)
|
|
Net income
|
5,030
|
|
1,389
|
|
262.1
|
|
Preferred stock
dividends and discount accretion
|
-
|
|
601
|
|
(100.0)
|
|
Net income available
to common shareholders
|
$
5,030
|
|
$
788
|
|
538.3
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
Earnings per share,
basic
|
$
0.19
|
|
$
0.04
|
|
374.5
|
|
Earnings per share,
diluted
|
0.19
|
|
0.04
|
|
373.1
|
|
Tangible common book
value per share (1)
|
8.53
|
|
8.14
|
|
4.9
|
|
|
|
|
|
|
|
|
|
Weighted average
participating common shares:
|
|
|
|
|
|
|
Basic
|
26,502
|
|
21,645
|
|
|
|
Diluted
|
26,582
|
|
21,646
|
|
|
Period-end number of
shares:
|
|
|
|
|
|
|
Common
|
26,526
|
|
21,359
|
|
|
|
Convertible
preferred
|
-
|
|
1,805
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
RATIOS
|
|
|
|
|
|
|
Return on average
assets
|
0.68%
|
|
0.12%
|
|
|
|
Return on average
common equity
|
7.81%
|
|
1.75%
|
|
|
|
Return on average
tangible common equity (1)
|
9.20%
|
|
2.30%
|
|
|
|
Net interest margin
(FTE)
|
4.26%
|
|
3.75%
|
|
|
|
Net interest margin
w/o hedging expense (FTE)
|
4.65%
|
|
4.11%
|
|
|
|
Average equity to
average assets
|
8.67%
|
|
9.55%
|
|
|
|
Allowance for loan
losses as a % of portfolio loans
|
1.54%
|
|
1.83%
|
|
|
|
|
Total portfolio loans
less fair value loans to allowance not covered by
loss-share
|
1.46%
|
|
1.71%
|
|
|
|
Nonperforming assets
to total assets, end of period
|
3.33%
|
|
5.14%
|
|
|
|
|
Not covered by loss
share
|
1.84%
|
|
2.28%
|
|
|
|
Ratio of net
charge-offs, with covered portion, to
|
|
|
|
|
|
|
|
average total loans,
annualized
|
0.55%
|
|
1.54%
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED FINANCIAL
DATA
|
|
|
|
|
|
|
Gain on sale of
investment securities, net
|
$
-
|
|
$
756
|
|
|
|
Fair value
accretion
|
3,213
|
|
1,068
|
|
|
|
FDIC related
income
|
136
|
|
627
|
|
|
|
Hedging instrument
expense
|
2,625
|
|
2,014
|
|
|
|
OREO valuation
adjustments
|
1,138
|
|
1,603
|
|
|
|
Transaction-related
expenses
|
540
|
|
1,861
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See
Reconciliation of Non-GAAP Financial Measures table for additional
details.
|
PERFORMANCE
SUMMARY
|
BNC
BANCORP
|
(Dollars in
thousands, except per share data, shares in thousands)
|
(Unaudited)
|
|
For the Nine Months
Ended
|
|
|
|
|
September 30,
2013
|
|
September 30,
2012
|
|
% Change
|
|
SUMMARY INCOME
STATEMENTS
|
|
|
|
|
|
|
|
Interest
income
|
$
100,834
|
|
$
81,291
|
|
24.0 %
|
|
|
Interest
expense
|
22,099
|
|
24,772
|
|
(10.8)
|
|
|
Net interest
income
|
78,735
|
|
56,519
|
|
39.3
|
|
|
Provision for loan
losses
|
9,753
|
|
17,217
|
|
(43.4)
|
|
|
Net interest income
after provision for loan losses
|
68,982
|
|
39,302
|
|
75.5
|
|
|
Non-interest
income
|
17,628
|
|
22,744
|
|
(22.5)
|
|
|
Non-interest
expense
|
69,305
|
|
57,401
|
|
20.7
|
|
|
Income before income
tax expense (benefit)
|
17,305
|
|
4,645
|
|
272.6
|
|
|
Income tax expense
(benefit)
|
3,329
|
|
(760)
|
|
(538.0)
|
|
|
Net income
|
13,976
|
|
5,405
|
|
158.6
|
|
|
Preferred stock
dividends and discount accretion
|
1,060
|
|
1,803
|
|
(41.2)
|
|
|
Net income available
to common shareholders
|
$
12,916
|
|
$
3,602
|
|
258.6
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
Earnings per share,
basic
|
$
0.49
|
|
$
0.25
|
|
95.1
|
|
|
Earnings per share,
diluted
|
0.49
|
|
0.25
|
|
95.0
|
|
|
Tangible common book
value per share (1)
|
8.53
|
|
8.14
|
|
4.9
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
participating common shares:
|
|
|
|
|
|
|
|
Basic
|
26,480
|
|
15,353
|
|
|
|
|
Diluted
|
26,493
|
|
15,358
|
|
|
|
Period-end number of
shares:
|
|
|
|
|
|
|
|
Common
|
26,526
|
|
21,359
|
|
|
|
|
Convertible
preferred
|
-
|
|
1,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
RATIOS
|
|
|
|
|
|
|
|
Return on average
assets
|
0.59%
|
|
0.20%
|
|
|
|
|
Return on average
common equity
|
6.82%
|
|
3.50%
|
|
|
|
|
Return on average
tangible common equity (1)
|
8.09%
|
|
4.77%
|
|
|
|
|
Net interest margin
(FTE)
|
4.26%
|
|
3.75%
|
|
|
|
|
Net interest margin
w/o hedging expense (FTE)
|
4.54%
|
|
4.11%
|
|
|
|
|
Average equity to
average assets
|
9.11%
|
|
7.96%
|
|
|
|
|
Allowance for loan
losses as a % of portfolio loans
|
1.54%
|
|
1.83%
|
|
|
|
|
|
Total portfolio loans
less fair value loans
to allowance not covered by loss-share
|
1.46%
|
|
1.71%
|
|
|
|
|
Nonperforming assets
to total assets, end of period
|
3.33%
|
|
5.14%
|
|
|
|
|
|
Nonperforming assets
not covered by loss share
|
1.84%
|
|
2.28%
|
|
|
|
|
Ratio of net
charge-offs, with covered portion, to
|
|
|
|
|
|
|
|
|
average total
loans
|
0.75%
|
|
1.21%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED FINANCIAL
DATA
|
|
|
|
|
|
|
|
Gain (loss) on sale
of investment securities, net
|
$
(52)
|
|
$
2,375
|
|
|
|
|
Acquisition
gains
|
719
|
|
7,734
|
|
|
|
|
Fair value
accretion
|
10,210
|
|
3,568
|
|
|
|
|
Additional accretion
from redemption of Series A preferred stock
|
356
|
|
-
|
|
|
|
|
FDIC related
income
|
277
|
|
1,310
|
|
|
|
|
Hedging instrument
expense
|
7,163
|
|
5,807
|
|
|
|
|
OREO valuation
adjustments
|
3,462
|
|
4,344
|
|
|
|
|
Transaction-related
expenses
|
1,884
|
|
3,806
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See
Reconciliation of Non-GAAP Financial Measures table for additional
details.
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
SUMMARY
|
|
|
|
|
|
|
|
|
|
BNC
BANCORP
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data, shares in thousands)
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
For the
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
September 30,
2013
|
|
June 30,
2013
|
|
March 31,
2013
|
|
December 31,
2012
|
|
September 30,
2012
|
SUMMARY INCOME
STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$
34,008
|
|
$
33,675
|
|
$
33,151
|
|
$
32,224
|
|
$
27,814
|
|
Interest
expense
|
7,372
|
|
7,364
|
|
7,363
|
|
8,119
|
|
8,063
|
|
Net interest
income
|
26,636
|
|
26,311
|
|
25,788
|
|
24,105
|
|
19,751
|
|
Provision for loan
losses
|
3,350
|
|
2,288
|
|
4,115
|
|
5,520
|
|
3,708
|
|
Net interest income
after provision for loan losses
|
23,286
|
|
24,023
|
|
21,673
|
|
18,585
|
|
16,043
|
|
Non-interest
income
|
5,824
|
|
5,602
|
|
6,202
|
|
10,394
|
|
5,253
|
|
Non-interest
expense
|
22,430
|
|
23,759
|
|
23,116
|
|
24,871
|
|
20,399
|
|
Income before income
tax expense (benefit)
|
6,680
|
|
5,866
|
|
4,759
|
|
4,108
|
|
897
|
|
Income tax expense
(benefit)
|
1,650
|
|
1,199
|
|
480
|
|
(940)
|
|
(492)
|
|
Net income
|
5,030
|
|
4,667
|
|
4,279
|
|
5,048
|
|
1,389
|
|
Preferred stock
dividends and discount accretion
|
-
|
|
531
|
|
529
|
|
601
|
|
601
|
|
Net income available
to common shareholders
|
$
5,030
|
|
$
4,136
|
|
$
3,750
|
|
$
4,447
|
|
$
788
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income,
as reported
|
$
26,636
|
|
$
26,311
|
|
$
25,788
|
|
$
24,105
|
|
$
19,751
|
|
|
Fully
Taxable-Equivalent ("FTE") adjustment
|
1,818
|
|
1,718
|
|
1,673
|
|
1,533
|
|
1,349
|
|
Net interest income,
FTE
|
$
28,454
|
|
$
28,029
|
|
$
27,461
|
|
$
25,638
|
|
$
21,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
Earnings per share,
basic
|
$
0.19
|
|
$
0.16
|
|
$
0.14
|
|
$
0.19
|
|
$
0.04
|
|
Earnings per share,
diluted
|
0.19
|
|
0.16
|
|
0.14
|
|
0.19
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
participating common shares:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
26,502
|
|
26,475
|
|
26,464
|
|
24,272
|
|
21,645
|
|
Diluted
|
26,582
|
|
26,498
|
|
26,476
|
|
24,277
|
|
21,646
|
Period-end number of
shares:
|
|
|
|
|
|
|
|
|
|
|
Common
|
26,526
|
|
26,479
|
|
26,472
|
|
24,650
|
|
21,359
|
|
Convertible
preferred
|
-
|
|
-
|
|
-
|
|
1,805
|
|
1,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
RATIOS
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
0.68%
|
|
0.57%
|
|
0.51%
|
|
0.63%
|
|
0.12%
|
|
Return on average
common equity
|
7.81%
|
|
6.49%
|
|
6.12%
|
|
8.16%
|
|
1.75%
|
|
Return on average
tangible common equity (1)
|
9.20%
|
|
7.70%
|
|
7.33%
|
|
9.76%
|
|
2.30%
|
|
Net interest margin
(FTE)
|
4.26%
|
|
4.32%
|
|
4.20%
|
|
4.09%
|
|
3.75%
|
|
Net interest margin
w/o hedging expense (FTE)
|
4.65%
|
|
4.68%
|
|
4.54%
|
|
4.43%
|
|
4.11%
|
|
Average equity to
average assets
|
8.67%
|
|
9.06%
|
|
9.61%
|
|
9.43%
|
|
9.55%
|
|
Allowance for loan
losses as a % of portfolio loans
|
1.54%
|
|
1.60%
|
|
1.88%
|
|
1.98%
|
|
1.83%
|
|
|
Total portfolio loans
less fair value loans to allowance not covered by
loss-share
|
1.46%
|
|
1.53%
|
|
1.62%
|
|
1.72%
|
|
1.71%
|
|
Nonperforming assets
to total assets, end of period
|
3.33%
|
|
3.90%
|
|
4.48%
|
|
3.93%
|
|
5.14%
|
|
|
Not covered by loss
share
|
1.84%
|
|
1.94%
|
|
2.19%
|
|
1.82%
|
|
2.28%
|
|
Ratio of net
charge-offs, with covered portion, to
|
|
|
|
|
|
|
|
|
|
|
|
average total loans,
annualized
|
0.55%
|
|
0.78%
|
|
0.92%
|
|
0.78%
|
|
1.54%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED FINANCIAL
DATA
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on sale
of investment securities, net
|
$
-
|
|
$
176
|
|
$
(228)
|
|
$
651
|
|
$
756
|
|
Acquisition
gains
|
-
|
|
-
|
|
719
|
|
4,972
|
|
-
|
|
Fair value
accretion
|
3,213
|
|
3,664
|
|
3,333
|
|
3,086
|
|
1,068
|
|
Additional accretion
from redemption of Series A preferred stock
|
-
|
|
356
|
|
-
|
|
-
|
|
-
|
|
FDIC related
income
|
136
|
|
137
|
|
4
|
|
236
|
|
627
|
|
Hedging instrument
expense
|
2,625
|
|
2,333
|
|
2,205
|
|
2,133
|
|
2,014
|
|
OREO valuation
adjustments
|
1,138
|
|
1,539
|
|
785
|
|
2,734
|
|
1,603
|
|
Transaction-related
expenses
|
540
|
|
309
|
|
1,035
|
|
1,406
|
|
1,861
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See
Reconciliation of Non-GAAP Financial Measures table for additional
details.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
SUMMARY
|
|
|
|
|
|
|
|
|
|
BNC
BANCORP
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
|
|
|
|
|
|
|
|
September 30,
2013
|
|
December 31,
2012
|
|
% Change
|
|
|
|
|
SELECTED BALANCE
SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
Portfolio
loans:
|
|
|
|
|
|
|
|
|
|
|
|
Loans not covered by
loss share
|
$
1,898,243
|
|
$
1,786,328
|
|
6.3 %
|
|
|
|
|
|
|
Loans covered by loss
share
|
201,799
|
|
248,930
|
|
(18.9)
|
|
|
|
|
|
|
Allowance for loan
losses
|
(32,358)
|
|
(40,292)
|
|
(19.7)
|
|
|
|
|
|
|
Net portfolio
loans
|
2,067,684
|
|
1,994,966
|
|
3.7
|
|
|
|
|
|
Loans held for
sale
|
17,732
|
|
57,414
|
|
(69.1)
|
|
|
|
|
|
Investment
securities
|
500,449
|
|
456,344
|
|
9.7
|
|
|
|
|
|
Total
interest-earning assets
|
2,658,902
|
|
2,747,702
|
|
(3.2)
|
|
|
|
|
|
Total
assets
|
2,968,709
|
|
3,083,788
|
|
(3.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
deposits
|
299,670
|
|
275,605
|
|
8.7
|
|
|
|
|
|
|
Interest-bearing
demand and savings
|
1,172,512
|
|
1,221,089
|
|
(4.0)
|
|
|
|
|
|
|
Time
deposits
|
963,679
|
|
1,159,615
|
|
(16.9)
|
|
|
|
|
|
|
Total
deposits
|
2,435,861
|
|
2,656,309
|
|
(8.3)
|
|
|
|
|
|
Borrowed
funds
|
256,554
|
|
120,555
|
|
112.8
|
|
|
|
|
|
Total
interest-bearing liabilities
|
2,392,745
|
|
2,501,259
|
|
(4.3)
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
equity
|
-
|
|
47,878
|
|
(100.0)
|
|
|
|
|
|
|
Common
equity
|
256,048
|
|
228,937
|
|
11.8
|
|
|
|
|
|
|
Accumulated other
comprehensive income
|
1,745
|
|
5,429
|
|
(67.9)
|
|
|
|
|
|
|
Total shareholders'
equity
|
257,793
|
|
282,244
|
|
(8.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
|
|
September 30,
2013
|
|
June 30,
2013
|
|
March 31,
2013
|
|
December 31,
2012
|
|
September 30,
2012
|
SELECTED BALANCE
SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
Portfolio
loans:
|
|
|
|
|
|
|
|
|
|
|
|
Loans not covered by
loss share
|
$
1,898,243
|
|
$
1,829,659
|
|
$
1,793,358
|
|
$
1,786,328
|
|
$
1,631,004
|
|
|
Loans covered by loss
share
|
201,799
|
|
219,282
|
|
237,791
|
|
248,930
|
|
269,388
|
|
|
Allowance for loan
losses
|
(32,358)
|
|
(32,859)
|
|
(38,148)
|
|
(40,292)
|
|
(34,823)
|
|
|
Net portfolio
loans
|
2,067,684
|
|
2,016,082
|
|
1,993,001
|
|
1,994,966
|
|
1,865,569
|
|
Loans held for
sale
|
17,732
|
|
39,954
|
|
46,134
|
|
57,414
|
|
29,883
|
|
Investment
securities
|
500,449
|
|
466,079
|
|
476,982
|
|
456,344
|
|
360,678
|
|
Total
interest-earning assets
|
2,658,902
|
|
2,610,415
|
|
2,605,429
|
|
2,747,702
|
|
2,424,949
|
|
Total
assets
|
2,968,709
|
|
2,929,636
|
|
2,929,191
|
|
3,083,788
|
|
2,711,173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
deposits
|
299,670
|
|
275,984
|
|
267,458
|
|
275,605
|
|
207,928
|
|
|
Interest-bearing
demand and savings
|
1,172,512
|
|
1,152,779
|
|
1,171,484
|
|
1,221,089
|
|
1,067,855
|
|
|
Time
deposits
|
963,679
|
|
999,552
|
|
1,069,207
|
|
1,159,615
|
|
1,033,304
|
|
|
Total
deposits
|
2,435,861
|
|
2,428,315
|
|
2,508,149
|
|
2,656,309
|
|
2,309,087
|
|
Borrowed
funds
|
256,554
|
|
227,697
|
|
117,774
|
|
120,555
|
|
136,895
|
|
Total
interest-bearing liabilities
|
2,392,745
|
|
2,380,028
|
|
2,358,465
|
|
2,501,259
|
|
2,238,054
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
equity
|
-
|
|
-
|
|
30,855
|
|
47,878
|
|
47,758
|
|
|
Common
equity
|
256,048
|
|
251,872
|
|
248,747
|
|
228,937
|
|
199,200
|
|
|
Accumulated other
comprehensive income
|
1,745
|
|
2,573
|
|
4,453
|
|
5,429
|
|
5,222
|
|
|
Total shareholders'
equity
|
257,793
|
|
254,445
|
|
284,055
|
|
282,244
|
|
252,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
SUMMARY
|
|
|
|
|
|
|
|
|
|
BNC
BANCORP
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Month
Period Ended
|
|
|
|
|
September 30,
2013
|
|
June 30,
2013
|
|
March 31,
2013
|
|
December 31,
2012
|
|
September 30,
2012
|
SELECTED AVERAGE
BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Loans not covered by
loss share
|
$
1,862,366
|
|
$
1,810,382
|
|
$
1,794,323
|
|
$
1,673,506
|
|
$
1,501,953
|
|
|
Loans covered by loss
share
|
210,541
|
|
228,536
|
|
243,360
|
|
267,632
|
|
276,984
|
|
|
Total
loans
|
2,072,907
|
|
2,038,918
|
|
2,037,683
|
|
1,941,138
|
|
1,778,937
|
|
Investment
securities
|
484,959
|
|
473,301
|
|
461,781
|
|
400,482
|
|
336,353
|
|
Total
interest-earning assets
|
2,650,389
|
|
2,604,275
|
|
2,650,229
|
|
2,495,019
|
|
2,236,808
|
|
Total
assets
|
2,945,832
|
|
2,916,204
|
|
2,980,654
|
|
2,806,031
|
|
2,523,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
deposits
|
288,887
|
|
272,088
|
|
262,821
|
|
225,419
|
|
194,006
|
|
|
Interest-bearing
demand and savings
|
1,172,608
|
|
1,150,213
|
|
1,176,740
|
|
1,109,651
|
|
991,293
|
|
|
Time
deposits
|
979,871
|
|
1,021,098
|
|
1,117,159
|
|
1,059,670
|
|
955,657
|
|
|
Total
deposits
|
2,441,366
|
|
2,443,398
|
|
2,556,720
|
|
2,394,740
|
|
2,140,956
|
|
Borrowed
funds
|
228,336
|
|
189,308
|
|
120,496
|
|
126,007
|
|
123,325
|
|
Total
interest-bearing liabilities
|
2,380,815
|
|
2,360,618
|
|
2,414,395
|
|
2,295,328
|
|
2,070,275
|
|
Shareholders'
equity
|
255,524
|
|
264,201
|
|
286,388
|
|
264,643
|
|
241,041
|
LOAN MIX AND
STRATIFICATION STATISTICS
|
|
|
|
|
|
BNC
BANCORP
|
|
|
|
|
|
(Dollars in
millions)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
|
|
|
|
September 30,
2013
|
|
September 30,
2012
|
|
% Change
|
Loans Not Covered
Under Loss Share Agreements:
|
|
|
|
|
|
|
Construction,
A&D, and Land
|
$
225.5
|
|
$
200.3
|
|
12.6
|
|
|
Residential
Construction
|
28.6
|
|
25.7
|
|
11.3
|
|
|
|
Presold
|
16.0
|
|
17.8
|
|
(10.1)
|
|
|
|
Speculative
|
12.6
|
|
7.9
|
|
59.5
|
|
|
|
Loan size -
over $400,000
|
2.2
|
|
1.5
|
|
46.7
|
|
|
|
Loan size -
$200,000 to $400,000
|
4.9
|
|
1.9
|
|
157.9
|
|
|
|
Loan size -
under $200,000
|
5.5
|
|
4.5
|
|
22.2
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Construction
|
106.1
|
|
78.7
|
|
34.8
|
|
|
|
Loan size - $5
million and over
|
18.1
|
|
14.5
|
|
24.8
|
|
|
|
Loan size - $3
million to $5 million
|
15.4
|
|
3.2
|
|
381.3
|
|
|
|
Loan size - $1
million to $3 million
|
51.7
|
|
43.9
|
|
17.8
|
|
|
|
Loan size - under $1
million
|
20.9
|
|
17.1
|
|
22.2
|
|
|
|
|
|
|
|
|
|
|
|
Residential and
Commercial A&D
|
9.4
|
|
19.7
|
|
(52.3)
|
|
|
|
Loan size - $3
million to $5 million
|
-
|
|
4.0
|
|
100.0
|
|
|
|
Loan size - $1
million to $3 million
|
3.6
|
|
10.2
|
|
(64.7)
|
|
|
|
Loan size - under $1
million
|
5.8
|
|
5.5
|
|
5.5
|
|
|
|
|
|
|
|
|
|
|
|
Land
|
81.4
|
|
76.2
|
|
6.8
|
|
|
|
Residential Buildable
Lots
|
20.8
|
|
25.0
|
|
(16.8)
|
|
|
|
Commercial Buildable
Lots
|
13.4
|
|
11.3
|
|
18.6
|
|
|
|
Land Held for
Development
|
25.2
|
|
22.0
|
|
14.6
|
|
|
|
Raw and Agricultural
Land
|
22.0
|
|
17.9
|
|
22.9
|
|
|
|
|
|
|
|
|
|
|
Commercial Real
Estate
|
$
1,165.2
|
|
$
910.2
|
|
28.0
|
|
|
Multi-Family
|
58.6
|
|
43.7
|
|
34.1
|
|
|
Churches
|
50.9
|
|
43.9
|
|
16.0
|
|
|
Retail
|
851.2
|
|
662.6
|
|
28.5
|
|
|
|
Owner
Occupied
|
243.4
|
|
204.1
|
|
19.3
|
|
|
|
Investment
|
607.8
|
|
458.5
|
|
32.6
|
|
|
|
Loan size - $5
million to $9 million
|
135.4
|
|
102.0
|
|
32.8
|
|
|
|
Loan size - $3
million to $5 million
|
98.6
|
|
64.8
|
|
52.2
|
|
|
|
Loan size - $1
million to $3 million
|
238.3
|
|
182.8
|
|
30.4
|
|
|
|
Loan size -
under $1 million
|
135.5
|
|
108.9
|
|
24.4
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
204.5
|
|
160.0
|
|
27.8
|
|
|
|
Owner
Occupied
|
113.2
|
|
86.9
|
|
30.3
|
|
|
|
Investment
|
91.3
|
|
73.1
|
|
24.9
|
|
|
|
Loan size - $5
million and over
|
6.1
|
|
-
|
|
100.0
|
|
|
|
Loan size - $3
million to $5 million
|
8.3
|
|
4.2
|
|
97.6
|
|
|
|
Loan size - $1
million to $3 million
|
38.7
|
|
39.5
|
|
(2.0)
|
|
|
|
Loan size -
under $1 million
|
38.2
|
|
29.4
|
|
29.9
|
|
|
|
|
|
|
|
|
|
LOAN MIX AND
STRATIFICATION STATISTICS
|
|
|
|
|
|
|
|
|
|
BNC
BANCORP
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trends
|
|
|
|
|
September 30,
2013
|
|
June 30,
2013
|
|
March 31,
2013
|
|
December 31,
2012
|
|
September 30,
2012
|
Loans Not Covered
Under Loss Share Agreements:
|
|
|
|
|
|
|
|
|
|
|
Construction,
A&D, and Land
|
$
225.5
|
|
$
211.3
|
|
$
232.3
|
|
$
196.5
|
|
$
200.3
|
|
|
Residential
Construction
|
28.6
|
|
32.6
|
|
31.1
|
|
27.3
|
|
25.7
|
|
|
|
Presold
|
16.0
|
|
18.7
|
|
18.6
|
|
15.8
|
|
17.8
|
|
|
|
Speculative
|
12.6
|
|
13.9
|
|
12.5
|
|
11.5
|
|
7.9
|
|
|
|
Loan size -
over $400,000
|
2.2
|
|
12.9
|
|
4.3
|
|
3.7
|
|
1.5
|
|
|
|
Loan size -
$200,000 to $400,000
|
4.9
|
|
9.7
|
|
3.2
|
|
2.9
|
|
1.9
|
|
|
|
Loan size -
under $200,000
|
5.5
|
|
10.0
|
|
5.0
|
|
4.9
|
|
4.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Construction
|
106.1
|
|
76.2
|
|
92.9
|
|
76.1
|
|
78.7
|
|
|
|
Loan size - $5
million and over
|
18.1
|
|
12.5
|
|
12.5
|
|
6.7
|
|
14.5
|
|
|
|
Loan size - $3
million to $5 million
|
15.4
|
|
10.7
|
|
11.0
|
|
6.7
|
|
3.2
|
|
|
|
Loan size - $1
million to $3 million
|
51.7
|
|
33.3
|
|
50.0
|
|
42.7
|
|
43.9
|
|
|
|
Loan size - under $1
million
|
20.9
|
|
19.7
|
|
19.4
|
|
20.0
|
|
17.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential and
Commercial A&D
|
9.4
|
|
17.6
|
|
15.1
|
|
18.1
|
|
19.7
|
|
|
|
Loan size - $3
million to $5 million
|
-
|
|
4.1
|
|
-
|
|
4.4
|
|
4.0
|
|
|
|
Loan size - $1
million to $3 million
|
3.6
|
|
6.6
|
|
8.8
|
|
9.1
|
|
10.2
|
|
|
|
Loan size - under $1
million
|
5.8
|
|
6.9
|
|
6.3
|
|
4.6
|
|
5.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
|
81.4
|
|
84.9
|
|
93.2
|
|
75.0
|
|
76.2
|
|
|
|
Residential Buildable
Lots
|
20.8
|
|
26.1
|
|
31.4
|
|
23.3
|
|
25.0
|
|
|
|
Commercial Buildable
Lots
|
13.4
|
|
17.7
|
|
18.9
|
|
10.2
|
|
11.3
|
|
|
|
Land Held for
Development
|
25.2
|
|
21.9
|
|
25.1
|
|
24.2
|
|
22.0
|
|
|
|
Raw and Agricultural
Land
|
22.0
|
|
19.2
|
|
17.8
|
|
17.3
|
|
17.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real
Estate
|
$
1,165.2
|
|
$
1,109.8
|
|
$
1,050.6
|
|
$
930.9
|
|
$
910.2
|
|
|
Multi-Family
|
58.6
|
|
59.2
|
|
48.6
|
|
47.5
|
|
43.7
|
|
|
Churches
|
50.9
|
|
51.5
|
|
49.6
|
|
42.8
|
|
43.9
|
|
|
Retail
|
851.2
|
|
804.3
|
|
757.2
|
|
674.3
|
|
662.6
|
|
|
|
Owner
Occupied
|
243.4
|
|
236.9
|
|
237.4
|
|
196.0
|
|
204.1
|
|
|
|
Investment
|
607.8
|
|
567.4
|
|
519.8
|
|
478.3
|
|
458.5
|
|
|
|
Loan size - $5
million to $9 million
|
135.4
|
|
95.1
|
|
89.0
|
|
101.2
|
|
102.0
|
|
|
|
Loan size - $3
million to $5 million
|
98.6
|
|
90.3
|
|
82.7
|
|
79.4
|
|
64.8
|
|
|
|
Loan size - $1
million to $3 million
|
238.3
|
|
242.4
|
|
215.5
|
|
186.6
|
|
182.8
|
|
|
|
Loan size -
under $1 million
|
135.5
|
|
139.6
|
|
132.6
|
|
111.1
|
|
108.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
204.5
|
|
194.8
|
|
195.2
|
|
166.3
|
|
160.0
|
|
|
|
Owner
Occupied
|
113.2
|
|
101.5
|
|
105.2
|
|
93.0
|
|
86.9
|
|
|
|
Investment
|
91.3
|
|
93.3
|
|
90.0
|
|
73.3
|
|
73.1
|
|
|
|
Loan size - $5
million and over
|
6.1
|
|
6.0
|
|
6.2
|
|
-
|
|
-
|
|
|
|
Loan size - $3
million to $5 million
|
8.3
|
|
11.5
|
|
4.0
|
|
4.1
|
|
4.2
|
|
|
|
Loan size - $1
million to $3 million
|
38.7
|
|
35.8
|
|
41.7
|
|
37.6
|
|
39.5
|
|
|
|
Loan size -
under $1 million
|
38.2
|
|
40.0
|
|
38.1
|
|
31.6
|
|
29.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
BNC
BANCORP
|
|
|
|
|
|
(Dollars in
thousands, except per share data, shares in thousands)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Earnings per
Share, Diluted (2)
|
For the Three
Months Ended September 30, 2013
|
|
|
|
|
Net income available
to common shareholders (GAAP)
|
$
5,030
|
|
|
|
|
Add:
Transaction-related charges, net of tax
|
343
|
|
|
|
|
Adjusted net income
available to common shareholders (non-GAAP)
|
$
5,373
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
fully diluted shares outstanding
|
26,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core earnings per
share, diluted (non-GAAP)
|
$
0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
Adjusted
Non-interest Income (2)
|
September
30,
2013
|
|
June 30,
2013
|
|
September 30
2012
|
Non-interest income
(GAAP)
|
$
5,824
|
|
$
5,602
|
|
$
5,253
|
Less: Insurance
settlement
|
479
|
|
-
|
|
-
|
Gain on sale of investment securities
|
-
|
|
176
|
|
756
|
FDIC income
|
136
|
|
137
|
|
627
|
Adjusted non-interest
income (non-GAAP)
|
$
5,209
|
|
$
5,289
|
|
$
3,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months
Ended
|
|
|
Adjusted
Non-interest Income (2)
|
September
30,
2013
|
|
September 30,
2012
|
|
|
Non-interest income
(GAAP)
|
$
17,628
|
|
$
22,744
|
|
|
Less: Insurance
settlement
|
479
|
|
-
|
|
|
Acquisition gains
|
719
|
|
7,734
|
|
|
Gain (loss) on sale of investment securities
|
(52)
|
|
2,375
|
|
|
FDIC income
|
277
|
|
1,310
|
|
|
Adjusted non-interest
income (non-GAAP)
|
$
16,205
|
|
$
11,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
Adjusted
Non-interest Expense (2)
|
September
30,
2013
|
|
June 30,
2013
|
|
September
30,
2012
|
Non-interest expense
(GAAP)
|
$
22,430
|
|
$
23,759
|
|
$
20,399
|
Less:
Transaction-related expenses
|
540
|
|
309
|
|
1,861
|
Adjusted non-interest
expense (non-GAAP)
|
$
21,890
|
|
$
23,450
|
|
$
18,538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months
Ended
|
|
|
Adjusted
Non-interest Expense (2)
|
September
30,
2013
|
|
September 30,
2012
|
|
|
Non-interest expense
(GAAP)
|
$
69,305
|
|
$
57,401
|
|
|
Less:
Transaction-related expenses
|
1,884
|
|
3,806
|
|
|
Adjusted non-interest
expense (non-GAAP)
|
$
67,421
|
|
$
53,595
|
|
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
BNC
BANCORP
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data, shares in thousands)
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common
Book Value per Share (2)
|
September 30,
2013
|
|
September 30,
2012
|
|
|
|
|
|
|
Shareholders' equity
(GAAP)
|
$
257,793
|
|
$
252,180
|
|
|
|
|
|
|
Less: Preferred
stock
|
-
|
|
47,758
|
|
|
|
|
|
|
Intangible assets
|
31,410
|
|
30,639
|
|
|
|
|
|
|
Tangible common
shareholders equity (non-GAAP)
|
$
226,383
|
|
$
173,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding
|
26,526
|
|
21,359
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common book
value per share (non-GAAP)
|
$
8.53
|
|
$
8.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
Return on Average
Tangible Common Equity (2)
|
September 30,
2013
|
|
June 30,
2013
|
|
March 31,
2013
|
|
December 31,
2012
|
|
September 30,
2012
|
Net income available
to common shareholders (GAAP)
|
$
5,030
|
|
$
4,136
|
|
$
3,750
|
|
$
4,447
|
|
$
788
|
Plus: Amortization of
intangibles, net of tax
|
160
|
|
160
|
|
160
|
|
105
|
|
80
|
Tangible net income
available to common shareholders (non-GAAP)
|
$
5,190
|
|
$
4,296
|
|
$
3,910
|
|
$
4,552
|
|
$
868
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common
shareholders equity
|
$
255,524
|
|
$
255,624
|
|
$
248,548
|
|
$
216,825
|
|
$
179,255
|
Less: Average
intangible assets
|
31,635
|
|
31,798
|
|
32,161
|
|
31,235
|
|
29,173
|
Average tangible
common shareholders' equity (non-GAAP)
|
$
223,889
|
|
$
223,826
|
|
$
216,387
|
|
$
185,590
|
|
$
150,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity (non-GAAP)
|
9.20%
|
|
7.70%
|
|
7.33%
|
|
9.76%
|
|
2.30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months
Ended
|
|
|
|
|
|
|
Return on Average
Tangible Common Equity (2)
|
September
30,
2013
|
|
September
30,
2012
|
|
|
|
|
|
|
Net income available
to common shareholders (GAAP)
|
$
12,916
|
|
$
3,602
|
|
|
|
|
|
|
Plus: Amortization of
intangibles, net of tax
|
480
|
|
275
|
|
|
|
|
|
|
Tangible net income
available to common shareholders (non-GAAP)
|
$
13,396
|
|
$
3,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common
shareholders equity
|
$
253,289
|
|
$
137,542
|
|
|
|
|
|
|
Less: Average
intangible assets
|
31,833
|
|
29,029
|
|
|
|
|
|
|
Average tangible
common shareholders' equity (non-GAAP)
|
$
221,456
|
|
$
108,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity (non-GAAP)
|
8.09%
|
|
4.77%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) BNC Bancorp
management uses this measure to evaluate the Company's
performance.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE BNC Bancorp