BNC Bancorp Reports Operating Results (10-Q)

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Aug 09, 2012
BNC Bancorp (BNCN, Financial) filed Quarterly Report for the period ended 2012-06-30.

Bnc Bancorp has a market cap of $76.6 million; its shares were traded at around $7.88 with a P/E ratio of 14.7 and P/S ratio of 0.6. The dividend yield of Bnc Bancorp stocks is 0.6%. Bnc Bancorp had an annual average earning growth of 3.6% over the past 10 years.

Highlight of Business Operations:

Total interest income (FTE) increased $1.7 million for the second quarter of 2012 when compared to the same quarter of 2011. This increase in interest income (FTE) is primarily driven by increases in our average loan balances, which have increased $218.1 million for the three months ended June 30, 2012 as compared to the same period in 2011. This increase is due to the acquisitions of Carolina Federal, Regent and Blue Ridge. Increases in average loans were offset by a 25 basis point decrease in average interest rates as compared to second quarter of 2011. Average total loans as a percentage of average interest-earning assets increased to 82.3% for the quarter ended June 30, 2012, compared to 81.1% for the prior year quarter. Average investment securities increased $349,000 while the average yield on investment securities decreased 16 basis points as compared to the second quarter of 2011.

Total interest income (FTE) increased $3.7 million for the six months ended June 30, 2012 when compared to the comparable period of 2011. This increase in interest income (FTE) is primarily driven by increases in our average loan balances, which have increased $211.1 million for the six months ended June 30, 2012 as compared to the same period in 2011. This increase is due to the acquisitions of Regent, Blue Ridge and, to a lesser extent, Carolina Federal. Increase in average loans is offset by a 17 basis point decrease in average interest rates as compared to second quarter of 2011. Average total loans as a percentage of interest-earning assets increased to 81.8% for the six months ended June 30, 2012, compared to 80.4% for the comparable period in 2011. Average investment securities decreased $369,000 while the average yield on investment securities decreased 37 basis points for the six months ended June 30, 2012 compared to the same period of 2011.

Non-interest income was $11.7 million for the second quarter of 2012 compared to $2.4 million for the prior year second quarter. Included in non-interest income for the second quarter of 2012 was $7.7 million of acquisition gain from a FDIC-assisted transaction and $238,000 of income associated with FDIC receivable and related loss-share receipts. Excluding FDIC related income and acquisition gains, non-interest income was $3.7 million for the current quarter, an increase of 61.9% from the $2.3 million reported for the second quarter of 2011. For the six months ended June 30, 2012, non-interest income, excluding FDIC related income, acquisition gains and the sales of investment securities, was $6.7 million compared to $4.7 million for the same period in 2011.

Mortgage fees generated from our mortgage market operations in the second quarter of 2012 increased $1.1 million, or 467%, compared to the second quarter of 2011. Proceeds from sales of loans held for sale totaled $61.7 million for the second quarter of 2012, compared to $30.7 million for the same period in 2011. During the second quarter of 2011, our original mortgage origination platform was terminated and replaced with a more robust platform that increased mortgage origination volume and fee income. For the six months ended June 30, 2012, mortgage fees were $2.5 million compared to $605,000 for the same period in 2011.

Total assets at June 30, 2012 were $2.44 billion, a decrease of $12.1 million when compared to total assets at December 31, 2011. Total earning assets, which are comprised of interest-earning balances at banks, investment securities, FHLB stock, loans held for sale and loans, were $2.17 billion at June 30, 2012 and $2.15 billion at December 31, 2011. Earning assets serve as our primary revenue source. Total liquid assets, which include cash and cash equivalents and investment securities available for sale at June 30, 2012 were 12.4% of total assets, or $303.1 million, a $35.0 million decrease from the $338.1 million reported at December 31, 2011.

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