HIGH POINT, N.C., Jan. 22, 2017 /PRNewswire/ -- BNC Bancorp
(NASDAQ: BNCN) ("Company"), parent company for Bank of North Carolina ("Bank"), today reported
financial results for the fourth quarter and fiscal year ended
December 31, 2016. Highlights
for the fourth quarter of 2016 include the following:
- Net income of $15.7 million,
or $0.31 per diluted share, compared
to $18.1 million, or $0.38 per diluted share, for third quarter of
2016
- Return on average assets of 0.87%, compared to 1.10% for third
quarter of 2016
- Return on average tangible common equity of 10.59%, compared to
13.37% for third quarter of 2016
- Operating net income of $21.8
million, or $0.43 per diluted
share, compared to $19.7 million, or
$0.42 per diluted share, for third
quarter of 2016
- Operating return on average assets of 1.21%, compared to 1.20%
for third quarter of 2016
- Operating return on average tangible common equity of 14.50%,
unchanged from third quarter of 2016
- Originated loans at December 31,
2016 of $3.65 billion, an
increase of $190.0 million compared
to September 30, 2016
- Total portfolio loans were $5.46
billion at December 31, 2016,
an increase of $459.8 million
compared to September 30, 2016
- Loan originations of $535
million, as compared to $630
million during the third quarter of 2016
- Asset quality ratios remain strong
- Completed acquisition and conversion of High Point Bank
Corporation
- Increased presence in the Piedmont Triad area of North Carolina
- Added insurance and trust services to suite of product
offerings
Financial
Performance
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
INCOME
SUMMARY
|
|
Dec. 31,
2016
|
|
Sept. 30,
2016
|
|
Jun. 30,
2016
|
|
Mar. 31,
2016
|
|
Dec. 31,
2015
|
|
Dec. 31,
2016
|
|
Dec. 31,
2015
|
Interest
income
|
|
(Dollars in
thousands)
|
|
Interest and fees on
loans
|
|
$
61,992
|
|
$
57,824
|
|
$
51,978
|
|
$
50,302
|
|
$
50,762
|
|
$222,096
|
|
$178,726
|
|
Investment
securities
|
|
6,974
|
|
6,910
|
|
6,202
|
|
5,965
|
|
5,336
|
|
26,051
|
|
19,205
|
|
Other
|
|
305
|
|
291
|
|
228
|
|
214
|
|
141
|
|
1,038
|
|
555
|
Total interest
income
|
|
69,271
|
|
65,025
|
|
58,408
|
|
56,481
|
|
56,239
|
|
249,185
|
|
198,486
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
7,935
|
|
7,619
|
|
6,704
|
|
6,241
|
|
5,851
|
|
28,499
|
|
20,447
|
|
Interest on
borrowings
|
|
2,009
|
|
1,989
|
|
1,774
|
|
1,750
|
|
1,648
|
|
7,522
|
|
6,237
|
Total interest
expense
|
|
9,944
|
|
9,608
|
|
8,478
|
|
7,991
|
|
7,499
|
|
36,021
|
|
26,684
|
Net interest
income
|
|
59,327
|
|
55,417
|
|
49,930
|
|
48,490
|
|
48,740
|
|
213,164
|
|
171,802
|
|
Provision for loan
losses
|
|
1,455
|
|
1,865
|
|
698
|
|
647
|
|
1,287
|
|
4,665
|
|
1,896
|
Net interest
income
|
|
57,872
|
|
53,552
|
|
49,232
|
|
47,843
|
|
47,453
|
|
208,499
|
|
169,906
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage lending
income
|
|
2,830
|
|
3,134
|
|
2,671
|
|
2,681
|
|
2,226
|
|
11,316
|
|
10,533
|
|
Service
charges
|
|
2,937
|
|
2,644
|
|
2,422
|
|
2,321
|
|
2,341
|
|
10,324
|
|
8,079
|
|
SBA income
|
|
579
|
|
739
|
|
1,104
|
|
811
|
|
467
|
|
3,233
|
|
1,835
|
|
Trust/wealth
income
|
|
1,086
|
|
307
|
|
366
|
|
436
|
|
533
|
|
2,195
|
|
1,714
|
|
Securities gains
(losses)
|
|
6
|
|
34
|
|
4
|
|
(39)
|
|
45
|
|
5
|
|
884
|
|
Earnings on
bank-owned life insurance
|
|
1,360
|
|
1,254
|
|
1,160
|
|
758
|
|
806
|
|
4,532
|
|
2,766
|
|
Other
|
|
2,898
|
|
1,699
|
|
1,288
|
|
994
|
|
1,868
|
|
6,879
|
|
6,637
|
Total non-interest
income
|
|
11,696
|
|
9,811
|
|
9,015
|
|
7,962
|
|
8,286
|
|
38,484
|
|
32,448
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
20,922
|
|
18,491
|
|
18,019
|
|
17,803
|
|
17,888
|
|
75,235
|
|
67,153
|
|
Occupancy
|
|
3,622
|
|
3,154
|
|
3,155
|
|
3,252
|
|
3,392
|
|
13,183
|
|
11,802
|
|
Furniture and
equipment
|
|
2,303
|
|
2,297
|
|
1,993
|
|
2,073
|
|
2,426
|
|
8,666
|
|
7,303
|
|
Data processing and
supply
|
|
1,805
|
|
1,766
|
|
1,491
|
|
1,437
|
|
1,194
|
|
6,499
|
|
4,380
|
|
Advertising and
business development
|
|
869
|
|
678
|
|
923
|
|
684
|
|
879
|
|
3,154
|
|
2,635
|
|
Insurance,
professional and other services
|
|
1,309
|
|
1,424
|
|
1,494
|
|
1,526
|
|
952
|
|
5,753
|
|
4,824
|
|
FDIC insurance
assessments
|
|
1,240
|
|
1,071
|
|
900
|
|
900
|
|
883
|
|
4,111
|
|
3,144
|
|
Loan, foreclosure and
OREO
|
|
1,233
|
|
1,562
|
|
856
|
|
1,367
|
|
1,639
|
|
5,018
|
|
9,852
|
|
Transaction-related
expenses
|
|
9,121
|
|
2,568
|
|
3,808
|
|
1,434
|
|
4,307
|
|
16,931
|
|
13,276
|
|
Loss on
extinguishment of debt
|
|
598
|
|
-
|
|
-
|
|
-
|
|
-
|
|
598
|
|
763
|
|
Other
|
|
4,543
|
|
4,824
|
|
4,201
|
|
4,410
|
|
4,020
|
|
17,978
|
|
14,023
|
Total non-interest
expenses
|
|
47,565
|
|
37,835
|
|
36,840
|
|
34,886
|
|
37,580
|
|
157,126
|
|
139,155
|
Income before
income tax expense
|
|
22,003
|
|
25,528
|
|
21,407
|
|
20,919
|
|
18,159
|
|
89,857
|
|
63,199
|
Income tax
expense
|
|
6,312
|
|
7,388
|
|
6,760
|
|
6,484
|
|
5,420
|
|
26,944
|
|
18,749
|
Net income
(GAAP)
|
|
15,691
|
|
18,140
|
|
14,647
|
|
14,435
|
|
12,739
|
|
62,913
|
|
44,450
|
|
Securities gains
(losses), net of tax
|
|
4
|
|
21
|
|
4
|
|
(25)
|
|
28
|
|
4
|
|
557
|
|
Transaction-related
charges, net of tax
|
|
5,746
|
|
1,618
|
|
2,399
|
|
903
|
|
2,713
|
|
10,666
|
|
8,364
|
|
Loss on
extinguishment of debt, net of tax
|
377
|
|
-
|
|
-
|
|
-
|
|
-
|
|
377
|
|
481
|
Operating net
income (non-GAAP)
|
|
$
21,810
|
|
$
19,736
|
|
$
17,042
|
|
$
15,363
|
|
$
15,424
|
|
$
73,952
|
|
$
52,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding
|
|
52,177
|
|
48,110
|
|
45,201
|
|
40,806
|
|
40,774
|
|
52,177
|
|
40,774
|
Weighted average
diluted shares outstanding
|
|
50,852
|
|
47,360
|
|
41,560
|
|
40,885
|
|
39,452
|
|
45,185
|
|
35,782
|
Performance
Ratios
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
Dec. 31,
2016
|
|
Sept. 30,
2016
|
|
Jun. 30,
2016
|
|
Mar. 31,
2016
|
|
Dec. 31,
2015
|
|
Dec. 31,
2016
|
|
Dec. 31,
2015
|
Earnings per diluted
share
|
|
$
0.31
|
|
$
0.38
|
|
$
0.35
|
|
$
0.35
|
|
$
0.32
|
|
$
1.39
|
|
$
1.24
|
Return on average
assets
|
|
0.87%
|
|
1.10%
|
|
1.00%
|
|
1.03%
|
|
0.93%
|
|
1.00%
|
|
0.94%
|
Return on average
common equity
|
|
7.22%
|
|
9.40%
|
|
9.43%
|
|
9.72%
|
|
9.13%
|
|
8.81%
|
|
9.52%
|
Return on average
tangible common equity (1)
|
|
10.59%
|
|
13.37%
|
|
13.29%
|
|
13.71%
|
|
13.33%
|
|
12.59%
|
|
13.40%
|
Efficiency ratio
(2)
|
|
65.02%
|
|
56.09%
|
|
60.51%
|
|
59.78%
|
|
63.75%
|
|
60.47%
|
|
65.70%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
per diluted share (1)
|
|
$
0.43
|
|
$
0.42
|
|
$
0.41
|
|
$
0.38
|
|
$
0.39
|
|
$
1.64
|
|
$
1.47
|
Operating return on
average assets (1)
|
|
1.21%
|
|
1.20%
|
|
1.16%
|
|
1.10%
|
|
1.13%
|
|
1.17%
|
|
1.12%
|
Operating return on
average tangible common equity (1)
|
14.50%
|
|
14.50%
|
|
15.36%
|
|
14.55%
|
|
15.99%
|
|
14.70%
|
|
15.77%
|
Operating efficiency
ratio (1) (2)
|
|
51.74%
|
|
52.31%
|
|
54.26%
|
|
57.28%
|
|
56.49%
|
|
53.72%
|
|
59.32%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share
|
|
$
17.29
|
|
$
16.53
|
|
$
15.86
|
|
$
14.79
|
|
$
14.52
|
|
$
17.29
|
|
$
14.52
|
Tangible book value
per common share (1)
|
|
12.29
|
|
12.21
|
|
11.28
|
|
11.07
|
|
10.77
|
|
12.29
|
|
10.77
|
(1)
|
See Reconciliation of
Non-GAAP Financial Measures for additional details.
|
(2)
|
Calculated on a
fully-taxable equivalent ("FTE") basis.
|
Other Selected
Financial Data
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
Dec. 31,
2016
|
|
Sept. 30,
2016
|
|
Jun. 30,
2016
|
|
Mar. 31,
2016
|
|
Dec. 31,
2015
|
|
Dec. 31,
2016
|
|
Dec. 31,
2015
|
|
|
(Dollars in
thousands)
|
Securities
gains (losses), net
|
|
$
6
|
|
$
34
|
|
$
4
|
|
$
(39)
|
|
$
45
|
|
$
5
|
|
$
884
|
Loss on
extinguishment of debt
|
|
598
|
|
-
|
|
-
|
|
-
|
|
-
|
|
598
|
|
763
|
Fair value
accretion
|
|
5,841
|
|
5,845
|
|
5,276
|
|
5,505
|
|
5,599
|
|
22,467
|
|
20,516
|
OREO valuation
adjustments, net
|
|
503
|
|
274
|
|
222
|
|
266
|
|
348
|
|
1,265
|
|
2,893
|
Transaction-related expenses
|
|
9,121
|
|
2,568
|
|
3,808
|
|
1,434
|
|
4,307
|
|
16,931
|
|
13,276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Richard D. Callicutt, II,
President and CEO, stated, "We are extremely pleased to report
record results for both the fourth quarter and full year of
2016. During the fourth quarter, after adjusting for all the
transaction-related expenses, operating earnings increased a
healthy 10.5%, while operating earnings per share increased to
$0.43. Operating return on
average assets was a healthy 1.21%, up slightly from the prior
quarter, while operating return on average tangible common equity
remained at 14.50%.
For the year, we are pleased to report a 40.2% increase in
operating earnings, a $1.52, or
14.1%, increase in tangible book value, an 11.6% increase in
operating earnings per share, and return on average tangible common
equity of a robust 14.70%. While these performance highlights
are the metrics which many people refer to when discussing our
valuation, it continues to be our ability to attract exceptional
people throughout a footprint that is highly concentrated in the
best growth markets across the Carolinas and Virginia that enables us to produce such
results.
As we look to the future, the challenges will continue to be
digesting higher regulatory costs and transitioning our resources
from a commercial real estate focused strategy, which has served us
extremely well over our 25 year history, into one of greater
balance as we build out the underwriting, monitoring, and risk
management capabilities of our C&I businesses and related
treasury support functions."
Non-interest
Income and Expense Data
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
Dec. 31,
2016
|
|
Sept. 30,
2016
|
|
Jun. 30,
2016
|
|
Mar. 31,
2016
|
|
Dec. 31,
2015
|
|
Dec. 31,
2016
|
|
Dec. 31,
2015
|
Non-interest
income
|
|
(Dollars in
thousands)
|
|
Mortgage lending
income
|
|
$
2,830
|
|
$
3,134
|
|
$
2,671
|
|
$
2,681
|
|
$
2,226
|
|
$
11,316
|
|
$
10,533
|
|
Service
charges
|
|
2,937
|
|
2,644
|
|
2,422
|
|
2,321
|
|
2,341
|
|
10,324
|
|
8,079
|
|
SBA income
|
|
579
|
|
739
|
|
1,104
|
|
811
|
|
467
|
|
3,233
|
|
1,835
|
|
Trust/wealth
income
|
|
1,086
|
|
307
|
|
366
|
|
436
|
|
533
|
|
2,195
|
|
1,714
|
|
Earnings on
bank-owned life insurance
|
|
1,360
|
|
1,254
|
|
1,160
|
|
758
|
|
806
|
|
4,532
|
|
2,766
|
|
Other
|
|
2,898
|
|
1,699
|
|
1,288
|
|
994
|
|
1,868
|
|
6,879
|
|
6,637
|
Total operating
non-interest income - non-GAAP
|
|
11,690
|
|
9,777
|
|
9,011
|
|
8,001
|
|
8,241
|
|
38,479
|
|
31,564
|
|
Securities gains
(losses), net
|
|
6
|
|
34
|
|
4
|
|
(39)
|
|
45
|
|
5
|
|
884
|
Total non-interest
income - GAAP
|
|
$ 11,696
|
|
$
9,811
|
|
$
9,015
|
|
$
7,962
|
|
$
8,286
|
|
$
38,484
|
|
$
32,448
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
$ 20,922
|
|
$ 18,491
|
|
$ 18,019
|
|
$ 17,803
|
|
$ 17,888
|
|
$
75,235
|
|
$
67,153
|
|
Occupancy
|
|
3,622
|
|
3,154
|
|
3,155
|
|
3,252
|
|
3,392
|
|
13,183
|
|
11,802
|
|
Furniture and
equipment
|
|
2,303
|
|
2,297
|
|
1,993
|
|
2,073
|
|
2,426
|
|
8,666
|
|
7,303
|
|
Data processing and
supply
|
|
1,805
|
|
1,766
|
|
1,491
|
|
1,437
|
|
1,194
|
|
6,499
|
|
4,381
|
|
Advertising and
business development
|
|
869
|
|
678
|
|
923
|
|
684
|
|
879
|
|
3,154
|
|
2,635
|
|
Insurance,
professional and other services
|
|
1,309
|
|
1,424
|
|
1,494
|
|
1,526
|
|
952
|
|
5,753
|
|
4,824
|
|
FDIC insurance
assessments
|
|
1,240
|
|
1,071
|
|
900
|
|
900
|
|
883
|
|
4,111
|
|
3,144
|
|
Loan, foreclosure and
OREO
|
|
1,233
|
|
1,562
|
|
856
|
|
1,367
|
|
1,639
|
|
5,018
|
|
9,852
|
|
Other
|
|
4,543
|
|
4,824
|
|
4,201
|
|
4,410
|
|
4,020
|
|
17,978
|
|
14,022
|
Total operating
non-interest expense - non-GAAP
|
37,846
|
|
35,267
|
|
33,032
|
|
33,452
|
|
33,273
|
|
139,597
|
|
125,116
|
|
Transaction-related
expenses
|
|
9,121
|
|
2,568
|
|
3,808
|
|
1,434
|
|
4,307
|
|
16,931
|
|
13,276
|
|
Loss on
extinguishment of debt
|
|
598
|
|
-
|
|
-
|
|
-
|
|
-
|
|
598
|
|
763
|
Total non-interest
expense - GAAP
|
|
$ 47,565
|
|
$ 37,835
|
|
$ 36,840
|
|
$ 34,886
|
|
$ 37,580
|
|
$ 157,126
|
|
$ 139,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total GAAP and operating non-interest income was $11.7 million for the fourth quarter of 2016, an
increase from $9.8 million for the
third quarter of 2016. The increase in non-interest income
was primarily due to the addition of High Point Bank Corporation
("High Point"), which generated
additional deposit fees and additional trust and wealth services
income. These increases were slightly offset by a seasonal
decrease in mortgage lending income. Many of the other
non-interest income sources, such as income from recoveries on
acquired loans and income derived from trust/wealth services, are
volatile and can vary significantly from period to
period.
Total GAAP non-interest expense was $47.6
million for the fourth quarter of 2016, an increase from
$37.8 million for the third quarter
of 2016. The results for the fourth quarter of 2016 include
$9.1 million of transaction-related
expenses and a $0.6 million loss on
the extinguishment of debt. Excluding these charges,
operating non-interest expense for the fourth quarter of 2016 was
$37.8 million, an increase compared
to $35.3 million for the third
quarter of 2016. This increase was directly related to the
additional headcount and facilities obtained from the Company's
acquisition of High Point.
Selected Balance
Sheet Data
|
|
|
|
Ending
Balance
|
|
|
Dec. 31,
2016
|
|
Sept. 30,
2016
|
|
Jun. 30,
2016
|
|
Mar. 31,
2016
|
|
Dec. 31,
2015
|
Portfolio
loans:
|
|
(Dollars in
thousands)
|
Originated loans
|
|
$
3,645,687
|
|
$
3,455,677
|
|
$
3,163,357
|
|
$
2,847,466
|
|
$
2,721,216
|
Acquired loans
|
|
1,810,023
|
|
1,540,270
|
|
1,649,328
|
|
1,390,688
|
|
1,478,655
|
Allowance for loan and lease losses
|
|
(37,501)
|
|
(36,366)
|
|
(33,841)
|
|
(32,548)
|
|
(31,647)
|
Portfolio
loans, net
|
|
5,418,209
|
|
4,959,581
|
|
4,778,844
|
|
4,205,606
|
|
4,168,224
|
Loans held for
sale
|
|
43,731
|
|
40,441
|
|
41,703
|
|
33,455
|
|
39,470
|
Investment
securities
|
|
896,786
|
|
838,289
|
|
803,058
|
|
757,248
|
|
734,557
|
Total
interest-earning assets
|
|
6,589,774
|
|
6,128,554
|
|
5,790,893
|
|
5,126,452
|
|
5,131,988
|
Goodwill
|
|
234,769
|
|
189,968
|
|
188,220
|
|
134,686
|
|
134,686
|
Other
intangible assets, net
|
|
25,911
|
|
17,852
|
|
19,014
|
|
17,143
|
|
18,299
|
Total
assets
|
|
7,401,691
|
|
6,801,562
|
|
6,478,373
|
|
5,699,573
|
|
5,668,183
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits
|
|
1,113,878
|
|
917,521
|
|
889,254
|
|
794,548
|
|
776,479
|
Interest-bearing demand and savings
|
|
3,405,036
|
|
3,080,479
|
|
2,652,735
|
|
2,431,584
|
|
2,366,890
|
Time deposits
|
|
1,564,063
|
|
1,652,123
|
|
1,814,654
|
|
1,537,644
|
|
1,598,838
|
Total
deposits
|
|
6,082,977
|
|
5,650,123
|
|
5,356,643
|
|
4,763,776
|
|
4,742,207
|
Borrowings
|
|
369,952
|
|
310,609
|
|
352,119
|
|
282,929
|
|
292,790
|
Total
interest-bearing liabilities
|
|
5,339,051
|
|
5,043,211
|
|
4,819,508
|
|
4,252,157
|
|
4,258,518
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
Common equity
|
|
900,044
|
|
786,625
|
|
710,300
|
|
598,158
|
|
584,818
|
Accumulated other comprehensive income
|
|
1,838
|
|
8,587
|
|
6,761
|
|
5,395
|
|
7,329
|
Total
shareholders' equity
|
|
901,882
|
|
795,212
|
|
717,061
|
|
603,553
|
|
592,147
|
Total assets at December 31, 2016
were $7.40 billion, an increase of
8.8% as compared to total assets of $6.80
billion at September 30, 2016.
Total portfolio loans were $5.46
billion at December 31, 2016,
an increase of 9.2% from $5.00
billion at September 30,
2016. Loans that were originated by the Company increased by
$190.0 million, or 5.5%, during the
fourth quarter of 2016.
Total deposits were $6.08 billion
at December 31, 2016, an increase of
$432.9 million, or 7.7%, as compared
to September 30, 2016.
Wholesale deposits comprised 21.3% of total deposits at
December 31, 2016, a decrease from
27.5% of total deposits at September
30, 2016. Transactional deposits increased by
$520.9 million, or 13.0%, at
December 31, 2016, as compared to
September 30, 2016. Total
borrowings were $370.0 million at
December 31, 2016, an increase of
19.1% compared to $310.6 million at
September 30, 2016. Total
shareholders' equity was $901.9
million at December 31, 2016,
an increase of $106.7 million, or
13.4%, as compared to $795.2 million
at September 30, 2016. The
increase in equity is primarily due to the issuance of 4.0 million
shares of voting common stock in connection with the acquisition of
High Point. At December 31,
2016, both the Bank's and Company's capital ratios exceeded
the minimum thresholds established for a well-capitalized bank by
regulatory measures.
On January 17, 2017, the Board of
Directors announced the declaration of a quarterly cash dividend on
its common stock of $0.05 per share.
This dividend is payable on February 24,
2017 to shareholders of record as of February 10, 2017. The $0.05 per share dividend rate is consistent with
the rate declared in previous quarters.
Loan Portfolio
Composition
|
|
|
|
Ending
Balance
|
|
|
Dec. 31,
2016
|
|
Sept. 30,
2016
|
|
Jun. 30,
2016
|
|
Mar. 31,
2016
|
|
Dec. 31,
2015
|
|
|
(Dollars in
millions)
|
Residential
construction
|
|
$
115
|
|
$
104
|
|
$
98
|
|
$
76
|
|
$
76
|
Presold
|
|
58
|
|
62
|
|
59
|
|
39
|
|
46
|
Speculative
|
|
57
|
|
42
|
|
39
|
|
37
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
construction
|
|
401
|
|
285
|
|
294
|
|
278
|
|
237
|
Residential and
commercial A&D
|
|
42
|
|
39
|
|
33
|
|
23
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
Land
|
|
120
|
|
118
|
|
126
|
|
118
|
|
111
|
Residential buildable
lots
|
|
51
|
|
44
|
|
44
|
|
39
|
|
34
|
Commercial buildable
lots
|
|
23
|
|
24
|
|
24
|
|
21
|
|
20
|
Land held for
development
|
|
26
|
|
23
|
|
31
|
|
34
|
|
34
|
Raw and agricultural
land
|
|
20
|
|
27
|
|
27
|
|
24
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
2,917
|
|
2,705
|
|
2,500
|
|
2,257
|
|
2,246
|
Multi-family
|
|
213
|
|
240
|
|
203
|
|
179
|
|
178
|
Farmland
|
|
3
|
|
3
|
|
4
|
|
4
|
|
5
|
Owner occupied
|
|
884
|
|
787
|
|
817
|
|
705
|
|
785
|
Non-owner
occupied
|
|
1,817
|
|
1,675
|
|
1,476
|
|
1,369
|
|
1,277
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
482
|
|
443
|
|
454
|
|
400
|
|
419
|
Residential
mortgage
|
|
1,326
|
|
1,251
|
|
1,258
|
|
1,039
|
|
1,049
|
Consumer
|
|
24
|
|
22
|
|
21
|
|
18
|
|
19
|
Leases
|
|
29
|
|
29
|
|
29
|
|
29
|
|
27
|
Total portfolio
loans
|
|
$
5,456
|
|
$
4,996
|
|
$
4,813
|
|
$
4,238
|
|
$
4,200
|
Acquired Loan
Summary
|
|
|
|
Ending
Balance
|
|
|
Dec. 31,
2016
|
|
Sept. 30,
2016
|
|
Jun. 30,
2016
|
|
Mar. 31,
2016
|
|
Dec. 31,
2015
|
|
|
(Dollars in
thousands)
|
Performing acquired
loans
|
|
$
1,710,008
|
|
$
1,432,351
|
|
$
1,537,650
|
|
$
1,278,965
|
|
$
1,363,379
|
Less: remaining FMV
adjustments
|
|
(27,846)
|
|
(21,687)
|
|
(25,630)
|
|
(23,359)
|
|
(27,789)
|
Performing acquired loans, net
|
|
1,682,162
|
|
1,410,664
|
|
1,512,020
|
|
1,255,606
|
|
1,335,590
|
FMV
adjustment %
|
|
1.6%
|
|
1.5%
|
|
1.7%
|
|
1.8%
|
|
2.0%
|
|
|
|
|
|
|
|
|
|
|
|
Purchase credit
impaired loans (PCI)
|
|
143,530
|
|
143,494
|
|
152,105
|
|
148,459
|
|
157,966
|
Less: remaining FMV
adjustments
|
|
(15,669)
|
|
(13,888)
|
|
(14,797)
|
|
(13,377)
|
|
(14,901)
|
PCI
loans, net
|
|
127,861
|
|
129,606
|
|
137,308
|
|
135,082
|
|
143,065
|
FMV
adjustment %
|
|
10.9%
|
|
9.7%
|
|
9.7%
|
|
9.0%
|
|
9.4%
|
|
|
|
|
|
|
|
|
|
|
|
Total acquired
performing loans
|
|
$
1,682,162
|
|
$
1,410,664
|
|
$
1,512,020
|
|
$
1,255,606
|
|
$
1,335,590
|
Total acquired PCI
loans
|
|
127,861
|
|
129,606
|
|
137,308
|
|
135,082
|
|
143,065
|
Total acquired
loans
|
|
$
1,810,023
|
|
$
1,540,270
|
|
$
1,649,328
|
|
$
1,390,688
|
|
$
1,478,655
|
FMV
adjustment % all acquired loans
|
|
2.3%
|
|
2.3%
|
|
2.4%
|
|
2.6%
|
|
2.8%
|
Asset
Quality
|
|
|
|
Ending
Balance
|
|
|
Dec. 31,
2016
|
|
Sept. 30,
2016
|
|
Jun. 30,
2016
|
|
Mar. 31,
2016
|
|
Dec. 31,
2015
|
|
|
(Dollars in
thousands)
|
Nonaccrual loans -
non-acquired
|
|
$
6,647
|
|
$
7,662
|
|
$
5,407
|
|
$
6,228
|
|
$
6,623
|
Nonaccrual loans -
acquired
|
|
7,989
|
|
9,347
|
|
11,756
|
|
12,706
|
|
12,086
|
OREO -
non-acquired
|
|
13,109
|
|
13,352
|
|
15,806
|
|
14,987
|
|
15,588
|
OREO -
acquired
|
|
13,380
|
|
14,696
|
|
14,708
|
|
15,783
|
|
16,973
|
90 days past due -
non-acquired
|
|
115
|
|
10
|
|
10
|
|
-
|
|
-
|
90 days past due -
acquired
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3
|
Total nonperforming
assets
|
|
$
41,240
|
|
$
45,067
|
|
$
47,687
|
|
$
49,704
|
|
$
51,273
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets - non-acquired
|
|
$
19,871
|
|
$
21,024
|
|
$
21,223
|
|
$
21,215
|
|
$
22,211
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries), QTD
|
|
$
320
|
|
$
(660)
|
|
$
(594)
|
|
$
(202)
|
|
$
352
|
Annualized net
charge-offs (recoveries) to total average portfolio
loans
|
|
0.02%
|
|
-0.05%
|
|
-0.05%
|
|
-0.02%
|
|
0.03%
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of total
nonperforming assets to total assets
|
|
0.56%
|
|
0.66%
|
|
0.74%
|
|
0.87%
|
|
0.90%
|
Ratio of total
nonperforming loans to total portfolio loans
|
|
0.27%
|
|
0.34%
|
|
0.36%
|
|
0.45%
|
|
0.45%
|
Ratio of total
allowance for loan losses to total portfolio loans
|
0.69%
|
|
0.73%
|
|
0.70%
|
|
0.77%
|
|
0.75%
|
|
|
|
|
|
|
|
|
|
|
|
Excluding
acquired
|
|
|
|
|
|
|
|
|
|
|
Ratio of
nonperforming assets to loans and OREO
|
|
0.54%
|
|
0.61%
|
|
0.67%
|
|
0.74%
|
|
0.81%
|
Ratio of
nonperforming loans to loans
|
|
0.19%
|
|
0.22%
|
|
0.17%
|
|
0.22%
|
|
0.24%
|
Ratio of allowance
for loan losses to loans
|
|
0.95%
|
|
0.97%
|
|
0.98%
|
|
1.03%
|
|
1.05%
|
Overall asset quality continued to improve during the fourth
quarter of 2016, as total nonperforming assets were $41.2 million, or 0.56% of total assets, at
December 31, 2016, as compared to
$45.1 million, or 0.66% of total
assets, at September 30, 2016.
Excluding nonperforming assets acquired by the Company,
nonperforming assets were $19.9
million, or 0.54% of non-acquired loans and OREO, at
December 31, 2016, as compared to
$21.0 million, or 0.61% of
non-acquired loans and OREO, at September
30, 2016.
The Company experienced $0.3
million of net charge-offs during the fourth quarter of
2016, compared to net recoveries of $0.7
million during the third quarter of 2016. Gross
charge-offs were $1.2 million during
the fourth quarter of 2016, an increase compared to gross
charge-offs of $0.9 million for the
third quarter of 2016.
The allowance for loan losses was $37.5
million at December 31, 2016,
an increase from $36.4 million at
September 30, 2016. The Company
recorded a provision for loan losses of $1.5
million during the fourth quarter of 2016, compared to
$1.9 million recorded during the
third quarter of 2016, as the Company continues to experience
strong growth in the originated loan portfolio.
Net Interest
Income and Margin
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
Dec. 31,
2016
|
|
Sept. 30,
2016
|
|
Jun. 30,
2016
|
|
Mar. 31,
2016
|
|
Dec. 31,
2015
|
|
Dec. 31,
2016
|
|
Dec. 31,
2015
|
Quarterly average
balances:
|
|
(Dollars in
thousands)
|
Loans
|
|
$
5,410,066
|
|
$
4,893,926
|
|
$
4,437,248
|
|
$
4,241,970
|
|
$4,193,632
|
|
$
4,737,387
|
|
$
3,639,890
|
Investment securities
|
|
835,235
|
|
828,144
|
|
760,841
|
|
737,361
|
|
656,940
|
|
801,256
|
|
574,951
|
Interest-bearing balances and other
|
181,678
|
|
147,763
|
|
134,923
|
|
139,367
|
|
76,533
|
|
151,008
|
|
63,426
|
Total interest-earning assets
|
|
6,426,979
|
|
5,869,833
|
|
5,333,012
|
|
5,118,698
|
|
4,927,105
|
|
5,689,651
|
|
4,278,267
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
bearing
|
|
1,056,507
|
|
907,344
|
|
825,148
|
|
778,114
|
|
772,831
|
|
892,271
|
|
653,999
|
Interest-bearing
|
|
4,862,443
|
|
4,475,901
|
|
4,138,466
|
|
3,953,668
|
|
3,784,140
|
|
4,359,322
|
|
3,292,226
|
Total deposits
|
|
5,918,950
|
|
5,383,245
|
|
4,963,614
|
|
4,731,782
|
|
4,556,971
|
|
5,251,593
|
|
3,946,225
|
Borrowed funds
|
|
315,828
|
|
321,218
|
|
272,374
|
|
262,880
|
|
288,209
|
|
293,214
|
|
279,877
|
Total interest-bearing liabilities
|
|
5,178,271
|
|
4,797,119
|
|
4,410,840
|
|
4,216,548
|
|
4,072,349
|
|
4,652,536
|
|
3,572,103
|
Shareholders' equity
|
|
864,656
|
|
768,124
|
|
625,021
|
|
597,127
|
|
553,475
|
|
714,293
|
|
466,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Income/Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
61,992
|
|
$
57,824
|
|
$
51,978
|
|
$
50,302
|
|
$
50,762
|
|
$
222,096
|
|
$
178,726
|
Investment securities, tax
|
|
3,352
|
|
3,113
|
|
2,908
|
|
2,720
|
|
2,069
|
|
12,093
|
|
6,338
|
Investment securities, non-tax (1)
|
5,749
|
|
6,027
|
|
5,229
|
|
5,151
|
|
5,186
|
|
22,156
|
|
20,424
|
Interest-bearing balances and other
|
305
|
|
291
|
|
228
|
|
214
|
|
141
|
|
1,038
|
|
555
|
Total
interest income
|
|
71,398
|
|
67,255
|
|
60,343
|
|
58,387
|
|
58,158
|
|
257,383
|
|
206,043
|
Deposits
|
|
7,935
|
|
7,619
|
|
6,704
|
|
6,241
|
|
5,851
|
|
28,499
|
|
20,447
|
Borrowings
|
|
2,009
|
|
1,989
|
|
1,774
|
|
1,750
|
|
1,648
|
|
7,522
|
|
6,237
|
Total
interest expense
|
|
9,944
|
|
9,608
|
|
8,478
|
|
7,991
|
|
7,499
|
|
36,021
|
|
26,684
|
Net
interest income
|
|
$
61,454
|
|
$
57,647
|
|
$
51,865
|
|
$
50,396
|
|
$
50,659
|
|
$
221,362
|
|
$
179,359
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yields and
Costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
4.56%
|
|
4.70%
|
|
4.71%
|
|
4.77%
|
|
4.80%
|
|
4.69%
|
|
4.91%
|
Investment securities, tax
|
|
2.96%
|
|
2.93%
|
|
3.01%
|
|
2.94%
|
|
2.81%
|
|
2.96%
|
|
2.92%
|
Investment securities, non-tax (1)
|
5.94%
|
|
5.91%
|
|
5.65%
|
|
5.68%
|
|
5.63%
|
|
5.64%
|
|
5.71%
|
Interest-bearing balances and other
|
0.67%
|
|
0.78%
|
|
0.68%
|
|
0.62%
|
|
0.73%
|
|
0.69%
|
|
0.88%
|
Total
interest-earning assets
|
|
4.42%
|
|
4.56%
|
|
4.55%
|
|
4.59%
|
|
4.68%
|
|
4.52%
|
|
4.82%
|
Total
interest-bearing deposits
|
|
0.65%
|
|
0.68%
|
|
0.65%
|
|
0.63%
|
|
0.61%
|
|
0.65%
|
|
0.62%
|
Borrowed
funds
|
|
2.53%
|
|
2.46%
|
|
2.62%
|
|
2.68%
|
|
2.27%
|
|
2.57%
|
|
2.23%
|
Total
interest-bearing liabilities
|
|
0.76%
|
|
0.80%
|
|
0.77%
|
|
0.76%
|
|
0.73%
|
|
0.77%
|
|
0.75%
|
Cost of
funds
|
|
0.63%
|
|
0.67%
|
|
0.65%
|
|
0.64%
|
|
0.61%
|
|
0.65%
|
|
0.63%
|
Net
interest margin
|
|
3.80%
|
|
3.91%
|
|
3.91%
|
|
3.96%
|
|
4.08%
|
|
3.89%
|
|
4.19%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Interest income and
average yields on non-taxable loans investment securities are
computed on a FTE basis for comparison with taxable investment
securities.
|
FTE net interest income for the fourth quarter of 2016 was
$61.5 million, an increase from
$57.6 million for the third quarter
of 2016. FTE net interest margin was 3.80% for the fourth
quarter of 2016, as compared to 3.91% for the third quarter of
2016. The average yield on interest-earning assets decreased
14 basis points to 4.42% for the fourth quarter of 2016, while the
rate paid on interest-bearing liabilities decreased slightly to
0.65%. Accretion earned on the Company's acquired loan
portfolio was $5.8 million during the
fourth quarter of 2016, unchanged from the amount earned during the
third quarter of 2016. Excluding accretion, the average yield
on loans was 4.13% for the fourth quarter 2016, as compared to
4.23% for the third quarter of 2016.
Average interest-earning assets for the fourth quarter of 2016
were $6.43 billion, an increase from
$5.87 billion for the third quarter
of 2016. The increase was primarily due to the acquisition of
High Point, as well as continued
organic loan growth throughout our existing markets. Average
interest-bearing liabilities were $5.18
billion for the fourth quarter of 2016, an increase from
$4.80 billion during the third
quarter of 2016. This increase was primarily in
interest-bearing deposits, which increased $386.5 million during the fourth quarter of 2016
due to the High Point
acquisition.
About BNC Bancorp and Bank of North
Carolina
Headquartered in High Point, North
Carolina, BNC Bancorp is the parent company of Bank of
North Carolina d/b/a BNC Bank, a
commercial bank with total assets of $7.40
billion. Bank of North
Carolina provides a complete line of banking and financial
services to individuals and businesses through its 76 current
banking offices in Virginia, North
and South Carolina. 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." The Company's website is
www.bncbancorp.com.
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" financial measures in its 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 financial measures to the most
directly comparable GAAP measure.
Forward Looking Statements
This press release contains "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements represent plans,
estimates, objectives, goals, guidelines, expectations, intentions,
projections and statements of our beliefs concerning future events,
business plans, objectives, expected operating results and the
assumptions upon which those statements are based. Forward-looking
statements include without limitation, any statement that may
predict, forecast, indicate or imply future results, performance or
achievements, and are typically identified with words such as
"may," "could," "should," "will," "would," "believe," "anticipate,"
"estimate," "project," "expect," "intend," "plan," or words or
phases of similar meaning. Forward-looking statements may include,
among other things, statements about the Company's confidence in
its strategies and its expectations about financial performance,
market growth, market and regulatory trends and developments,
acquisitions and divestitures, new technologies, services and
opportunities and earnings. The forward-looking statements are
based largely on the Company's expectations and are subject to a
number of known and unknown risks and uncertainties that are
subject to change based on factors which are, in many instances,
beyond the Company's control. The Company undertakes no obligation
to publicly update any forward-looking statement to reflect
developments occurring after the statement is made, except as
otherwise required by law. Actual results, performance or
achievements could differ materially from those contemplated,
expressed, or implied by the forward-looking statements as a result
of, among other factors, the risks and uncertainties described in
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in the Company's Annual Report on Form 10-K
for the year ended December 31, 2015
and Quarterly Report on Form 10-Q for the periods ended
September 30, 2016, June 30, 2016, and March
31, 2016, respectively. Please refer to the SEC's
website at www.sec.gov where you can review those
documents.
Reconciliation of
Non-GAAP Financial Measures
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
Dec. 31,
2016
|
|
Sept. 30,
2016
|
|
Jun. 30,
2016
|
|
Mar. 31,
2016
|
|
Dec. 31,
2015
|
|
Dec. 31,
2016
|
|
Dec. 31,
2015
|
Operating Earnings
per Share, Diluted (1)
|
|
(Dollars in
thousands)
|
Net income
(GAAP)
|
|
$
15,691
|
|
$
18,140
|
|
$
14,647
|
|
$
14,435
|
|
$
12,739
|
|
$
62,913
|
|
$
44,450
|
Transaction-related
expenses, net of tax
|
|
5,746
|
|
1,618
|
|
2,399
|
|
903
|
|
2,713
|
|
10,666
|
|
8,364
|
Loss on
extinguishment of debt, net of tax
|
|
377
|
|
-
|
|
-
|
|
-
|
|
-
|
|
377
|
|
481
|
Securities gains
(losses), net of tax
|
|
4
|
|
21
|
|
4
|
|
(25)
|
|
28
|
|
4
|
|
557
|
Operating earnings
(non-GAAP)
|
|
21,810
|
|
19,736
|
|
17,042
|
|
15,363
|
|
15,424
|
|
73,952
|
|
52,738
|
Weighted average
fully diluted shares outstanding
|
|
50,852
|
|
47,360
|
|
41,560
|
|
40,885
|
|
39,452
|
|
45,185
|
|
35,782
|
Operating earnings
per share, diluted (non-GAAP)
|
|
$
0.43
|
|
$
0.42
|
|
$
0.41
|
|
$
0.38
|
|
$
0.39
|
|
$
1.64
|
|
$
1.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common
Book Value per Share (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
(GAAP)
|
|
$
901,882
|
|
$
795,212
|
|
$
717,061
|
|
$
603,553
|
|
$
592,147
|
|
$
901,882
|
|
$
592,147
|
Intangible
assets
|
|
260,680
|
|
207,820
|
|
207,234
|
|
151,829
|
|
152,985
|
|
260,680
|
|
152,985
|
Tangible common
shareholders equity (non-GAAP)
|
|
641,202
|
|
587,392
|
|
509,827
|
|
451,724
|
|
439,162
|
|
641,202
|
|
439,162
|
Common shares
outstanding
|
|
52,177
|
|
48,110
|
|
45,201
|
|
40,806
|
|
40,774
|
|
52,177
|
|
40,774
|
Tangible common book
value per share (non-GAAP)
|
|
$
12.29
|
|
$
12.21
|
|
$
11.28
|
|
$
11.07
|
|
$
10.77
|
|
$
12.29
|
|
$
10.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average
Tangible Common Equity (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$
15,691
|
|
$
18,140
|
|
$
14,647
|
|
$
14,435
|
|
$
12,739
|
|
$
62,913
|
|
$
44,450
|
Amortization of
intangibles, net of tax
|
|
888
|
|
732
|
|
748
|
|
728
|
|
745.92
|
|
3,096
|
|
2,498
|
Tangible net income
available to common shareholders (non-GAAP)
|
|
16,579
|
|
18,872
|
|
15,395
|
|
15,163
|
|
13,485
|
|
66,009
|
|
46,948
|
Average common
shareholders equity
|
|
864,656
|
|
768,124
|
|
625,021
|
|
597,127
|
|
553,475
|
|
714,293
|
|
466,881
|
Average intangible
assets
|
|
241,802
|
|
206,653
|
|
159,184
|
|
152,379
|
|
152,255
|
|
190,128
|
|
116,548
|
Average tangible
common shareholders' equity (non-GAAP)
|
|
622,854
|
|
561,471
|
|
465,837
|
|
444,748
|
|
401,220
|
|
524,165
|
|
350,333
|
Return on average
tangible common equity (non-GAAP)
|
|
10.59%
|
|
13.37%
|
|
13.29%
|
|
13.71%
|
|
13.33%
|
|
12.59%
|
|
13.40%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Return
on Average Assets (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$
15,691
|
|
$
18,140
|
|
$
14,647
|
|
$
14,435
|
|
$
12,739
|
|
$
62,913
|
|
$
44,450
|
Transaction-related
expenses, net of tax
|
|
5,746
|
|
1,618
|
|
2,399
|
|
903
|
|
2,713
|
|
10,666
|
|
8,364
|
Loss on
extinguishment of debt, net of tax
|
|
377
|
|
-
|
|
-
|
|
-
|
|
-
|
|
377
|
|
481
|
Securities gains
(losses), net of tax
|
|
4
|
|
21
|
|
4
|
|
(25)
|
|
28
|
|
4
|
|
557
|
Operating earnings
(non-GAAP)
|
|
$
21,810
|
|
$
19,736
|
|
$
17,042
|
|
$
15,363
|
|
$
15,424
|
|
$
73,952
|
|
$
52,738
|
Average
assets
|
|
7,158,393
|
|
6,532,517
|
|
5,908,341
|
|
5,635,137
|
|
5,428,444
|
|
6,311,531
|
|
4,720,107
|
Operating return on
average assets (non-GAAP)
|
|
1.21%
|
|
1.20%
|
|
1.16%
|
|
1.10%
|
|
1.13%
|
|
1.17%
|
|
1.12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Return
on Average Tangible Common Equity (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$
15,691
|
|
$
18,140
|
|
$
14,647
|
|
$
14,435
|
|
$
12,739
|
|
$
62,913
|
|
$
44,450
|
Amortization of
intangibles, net of tax
|
|
888
|
|
732
|
|
748
|
|
728
|
|
746
|
|
3,096
|
|
2,498
|
Transaction-related
expenses, net of tax
|
|
5,746
|
|
1,618
|
|
2,399
|
|
903
|
|
2,713
|
|
10,666
|
|
8,364
|
Loss on
extinguishment of debt, net of tax
|
|
377
|
|
-
|
|
-
|
|
-
|
|
-
|
|
377
|
|
481
|
Securities gains
(losses), net of tax
|
|
4
|
|
21
|
|
4
|
|
(25)
|
|
28
|
|
4
|
|
557
|
Operating tangible
net income (non-GAAP)
|
|
$
22,698
|
|
$
20,468
|
|
$
17,790
|
|
$
16,091
|
|
$
16,170
|
|
$
77,048
|
|
$
55,236
|
Average common
shareholders equity
|
|
864,656
|
|
768,124
|
|
625,021
|
|
597,127
|
|
553,475
|
|
714,293
|
|
466,881
|
Average intangible
assets
|
|
241,802
|
|
206,653
|
|
159,184
|
|
152,379
|
|
152,255
|
|
190,128
|
|
116,548
|
Average tangible
common shareholders' equity (non-GAAP)
|
|
622,854
|
|
561,471
|
|
465,837
|
|
444,748
|
|
401,220
|
|
524,165
|
|
350,333
|
Operating return on
average tangible common equity (non-GAAP)
|
|
14.50%
|
|
14.50%
|
|
15.36%
|
|
14.55%
|
|
15.99%
|
|
14.70%
|
|
15.77%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Efficiency Ratio (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense
(GAAP)
|
|
$
47,565
|
|
$
37,835
|
|
$
36,840
|
|
$
34,886
|
|
$
37,580
|
|
$
157,126
|
|
$
139,155
|
Transaction-related
expenses
|
|
9,121
|
|
2,568
|
|
3,808
|
|
1,434
|
|
4,307
|
|
16,931
|
|
13,276
|
Loss on
extinguishment of debt
|
|
598
|
|
-
|
|
-
|
|
-
|
|
-
|
|
598
|
|
763
|
Operating
non-interest expense (non-GAAP)
|
|
37,846
|
|
35,267
|
|
33,032
|
|
33,452
|
|
33,273
|
|
139,597
|
|
125,116
|
Net interest income,
FTE
|
|
61,454
|
|
57,647
|
|
51,865
|
|
50,396
|
|
50,659
|
|
221,362
|
|
179,359
|
Non-interest income -
GAAP
|
|
11,696
|
|
9,811
|
|
9,015
|
|
7,962
|
|
8,286
|
|
38,484
|
|
32,448
|
Securities gains
(losses), net
|
|
6
|
|
34
|
|
4
|
|
(39)
|
|
45
|
|
5
|
|
884
|
Operating efficiency
ratio (non-GAAP)
|
|
51.74%
|
|
52.31%
|
|
54.26%
|
|
57.28%
|
|
56.49%
|
|
53.72%
|
|
59.32%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Operating earnings
per diluted share, operating non-interest income, operating
non-interest expense, operating income tax expense, operating
return on average assets, and operating return on average tangible
common equity are non-GAAP financial measures and exclude the
after-tax effect of transaction-related charges, loss on
extinguishment of debt, securities gains (losses) and other
one-time charges. Management believes that these non-GAAP
performance measures provide additional useful information that
allows readers to evaluate the ongoing performance of the
company.
|
(2)
|
The tangible measures
are non-GAAP financial measures and exclude the effect of period
end or average balance of intangible assets. Management
believes that these non-GAAP tangible measures provide additional
useful information, particularly since these measures are widely
used by industry analysts for companies with prior merger and
acquisition activities.
|
(3)
|
Operating efficiency
ratio is calculated by non-interest expense, excluding
transaction-related expenses, and loss on extinguishment of debt,
divided by the sum of FTE net interest income and non-interest
income excluding securities gains (losses). Management
believes this non-GAAP operating measure provides additional useful
information that allows readers to evaluate the ongoing performance
of the company.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/bnc-bancorp-announces-earnings-for-fourth-quarter-and-fiscal-year-2016-300394526.html
SOURCE BNC Bancorp