BNC Bancorp (BNCN, Financial) filed Quarterly Report for the period ended 2009-06-30.
BNC Bancorp provides a complete line of banking and financial services to individuals and businesses through full-service banking offices located in the cities of Thomasville Archdale Lexington Kernersville and Oak Ridge North Carolina. BNC Bancorp has a market cap of $58.2 million; its shares were traded at around $7.9245 with a P/E ratio of 19.3 and P/S ratio of 0.8. The dividend yield of BNC Bancorp stocks is 0.6%. BNC Bancorp had an annual average earning growth of 15.8% over the past 5 years.
Loans increased by $7.3 million to $1.0 billion during the six months ending June 30, 2009. The mix and stratification within certain classifications of the Companys loan portfolio has changed when compared to the loan portfolio composition at December 31, 2008. The Companys construction and acquisition & development (A&D) portfolio had reduced from $306.7 million at December 31, 2008 to $248.9 million at June 30, 2009, representing a decrease of 18.9%. At June 30, 2009, the residential and commercial construction portfolios were reduced by 36.1% from year-end 2008 levels, including reducing the speculative 1-4 family construction loans with balances above $400,000 to $13.5 million, a 46.4% reduction. The Company has also minimized the residential and commercial A&D portfolios, with having reduced outstanding balances by 21.4%, or $15.1 million, when compared to year-end 2008. The Companys commercial real estate portfolio increased from $349.7 million at December 31, 2008 to $391.0 million at June 30, 2009, primarily from increases in the Companys multi-family and retail commercial real estate portfolios.
Deposits continue to be our primary funding source. At June 30, 2009, deposits totaled $1.3 billion, an increase of $196.4 million, or 17.1%, from year-end 2008. This change was due to an increase of $294.5 million in our money market deposit portfolio, a $128.9 million decline in our time deposits greater than $100,000 being offset by an increase of $28.4 million in our other time deposits. While we continue to utilize borrowings to support balance sheet management and growth, during the first six months of 2009 the Company repaid $174.8 million of short-term borrowings and long-term debt. We had $96.7 million of long-term debt outstanding at June 30, 2009, compared to $105.7 million outstanding at year-end 2008. During the period ended June 30, 2009, short-term borrowings decreased from $194.1 million to $28.3 million.
Net Income. The Company reported net income of $1.4 million and net income available to common shareholders of $934,000, or $0.13 per diluted share for the second quarter of 2009, as compared with net income of $915,000, or $0.12 per diluted share for the second quarter of 2008. Net interest income for the second quarter of 2009 increased to $11.6 million, an increase of $3.4 million, or 41.3%, while non-interest income decreased by $415,000, or 25.5%. The net increases in income are greater than the $819,000 increase in non-interest expenses, which totaled $8.5 million during the second quarter of 2009 as compared with $7.7 million during the same three month period in 2008. The provision for loan losses for the three months ended June 30, 2009 was $3.0 million, representing an increase of $1.9 million, or 160.9%, from the $1.2 million charged to the provision for the three months ended June 30, 2008.
Non-interest expense was $8.5 million for the three months ended June 30, 2009, up $819,000, or 10.7%, from $7.7 million for the quarter ended June 30, 2008. The increase in non-interest expense resulted principally from an increase of $1.1 million in FDIC assessments mainly attributable to a $750,000 special five basis point assessment fee, mandated for all banks by the FDIC and an increase of $159,000 in advertising and business development expenses as part of our strategy to grow core deposits and increase visibility during a period when many of our larger competitors are being acquired or in a defensive posture. For the three months ended June 30, 2009, salaries and employee benefits expense decreased by $169,000, or 3.8%, to $4.2 million from $4.4 million reported for the same period in the prior year. Increases in salaries and employee benefits expense for the development of a treasury sales and support team, the expansion of the retail banking team, and the formation of a special assets team were completely offset from the effects of a $650,000 prior year period expense relating to the separation of employment with a former executive officer. Other operating expenses decreased by $294,000 for the three months ended June 30, 2009 in comparison with the prior year period principally from a one-time charge of $350,000 that was taken on an OREO property during 2008.
Net Income. The Company reported net income of $2.8 million and net income available to common shareholders of $1.8 million, or $0.25 per diluted share for the six months ended June 30, 2009, as compared with net income of $2.6 million, or $0.35 per diluted share for the same period of 2008. Net interest income for the first half of 2009 increased to $22.0 million, a $5.6 million, or 34.2%, while non-interest income decreased by $572,000, or 19.1%. The increases in income are greater than the $1.8 million increase in non-interest expenses, which totaled $15.9 million during the first six months of 2009 as compared with $14.1 million during the same six-month period in 2008. The provision for loan losses for the six months ended June 30, 2009 was $6.0 million, representing an increase of $4.1 million, or 220.0%, from the $1.9 million charged to the provision for the six months ended June 30, 2008.
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BNC Bancorp provides a complete line of banking and financial services to individuals and businesses through full-service banking offices located in the cities of Thomasville Archdale Lexington Kernersville and Oak Ridge North Carolina. BNC Bancorp has a market cap of $58.2 million; its shares were traded at around $7.9245 with a P/E ratio of 19.3 and P/S ratio of 0.8. The dividend yield of BNC Bancorp stocks is 0.6%. BNC Bancorp had an annual average earning growth of 15.8% over the past 5 years.
Highlight of Business Operations:
During the six-month period ending June 30, 2009, our total assets increased by $27.0 million to $1.60 billion from $1.57 billion at December 31, 2008. At June 20, 2009, our loans totaled $1.0 billion, an increase of $7.3 million, or 0.7%, during the first six months of the year. Deposits increased by $196.4 million, as a result of the $294.5 million increase in money market balance, and a $100.5 million decline in time deposits. Borrowings also declined by $174.8 million during the six-month period, as the proceeds from the gains in money market accounts were used to reduce borrowings and time deposits. Total liquid assets, which include cash and cash equivalents and securities available for sale, ended the six-month period at quarter at 29.5% of total assets, or $471.3 million, an $18.0 million increase from the $453.3 million reported at December 31, 2008. As noted in the Executive Summary, management continued its emphasis on growing liquid assets, as evidenced by the $18.0 million increase in cash and cash equivalents. At June 30, 2009, premises and equipment, net of depreciation, increased by $764,000 during the six months as we continue to invest in our Companys branch office infrastructure, primarily the new office in Northern Davidson County, North Carolina.Loans increased by $7.3 million to $1.0 billion during the six months ending June 30, 2009. The mix and stratification within certain classifications of the Companys loan portfolio has changed when compared to the loan portfolio composition at December 31, 2008. The Companys construction and acquisition & development (A&D) portfolio had reduced from $306.7 million at December 31, 2008 to $248.9 million at June 30, 2009, representing a decrease of 18.9%. At June 30, 2009, the residential and commercial construction portfolios were reduced by 36.1% from year-end 2008 levels, including reducing the speculative 1-4 family construction loans with balances above $400,000 to $13.5 million, a 46.4% reduction. The Company has also minimized the residential and commercial A&D portfolios, with having reduced outstanding balances by 21.4%, or $15.1 million, when compared to year-end 2008. The Companys commercial real estate portfolio increased from $349.7 million at December 31, 2008 to $391.0 million at June 30, 2009, primarily from increases in the Companys multi-family and retail commercial real estate portfolios.
Deposits continue to be our primary funding source. At June 30, 2009, deposits totaled $1.3 billion, an increase of $196.4 million, or 17.1%, from year-end 2008. This change was due to an increase of $294.5 million in our money market deposit portfolio, a $128.9 million decline in our time deposits greater than $100,000 being offset by an increase of $28.4 million in our other time deposits. While we continue to utilize borrowings to support balance sheet management and growth, during the first six months of 2009 the Company repaid $174.8 million of short-term borrowings and long-term debt. We had $96.7 million of long-term debt outstanding at June 30, 2009, compared to $105.7 million outstanding at year-end 2008. During the period ended June 30, 2009, short-term borrowings decreased from $194.1 million to $28.3 million.
Net Income. The Company reported net income of $1.4 million and net income available to common shareholders of $934,000, or $0.13 per diluted share for the second quarter of 2009, as compared with net income of $915,000, or $0.12 per diluted share for the second quarter of 2008. Net interest income for the second quarter of 2009 increased to $11.6 million, an increase of $3.4 million, or 41.3%, while non-interest income decreased by $415,000, or 25.5%. The net increases in income are greater than the $819,000 increase in non-interest expenses, which totaled $8.5 million during the second quarter of 2009 as compared with $7.7 million during the same three month period in 2008. The provision for loan losses for the three months ended June 30, 2009 was $3.0 million, representing an increase of $1.9 million, or 160.9%, from the $1.2 million charged to the provision for the three months ended June 30, 2008.
Non-interest expense was $8.5 million for the three months ended June 30, 2009, up $819,000, or 10.7%, from $7.7 million for the quarter ended June 30, 2008. The increase in non-interest expense resulted principally from an increase of $1.1 million in FDIC assessments mainly attributable to a $750,000 special five basis point assessment fee, mandated for all banks by the FDIC and an increase of $159,000 in advertising and business development expenses as part of our strategy to grow core deposits and increase visibility during a period when many of our larger competitors are being acquired or in a defensive posture. For the three months ended June 30, 2009, salaries and employee benefits expense decreased by $169,000, or 3.8%, to $4.2 million from $4.4 million reported for the same period in the prior year. Increases in salaries and employee benefits expense for the development of a treasury sales and support team, the expansion of the retail banking team, and the formation of a special assets team were completely offset from the effects of a $650,000 prior year period expense relating to the separation of employment with a former executive officer. Other operating expenses decreased by $294,000 for the three months ended June 30, 2009 in comparison with the prior year period principally from a one-time charge of $350,000 that was taken on an OREO property during 2008.
Net Income. The Company reported net income of $2.8 million and net income available to common shareholders of $1.8 million, or $0.25 per diluted share for the six months ended June 30, 2009, as compared with net income of $2.6 million, or $0.35 per diluted share for the same period of 2008. Net interest income for the first half of 2009 increased to $22.0 million, a $5.6 million, or 34.2%, while non-interest income decreased by $572,000, or 19.1%. The increases in income are greater than the $1.8 million increase in non-interest expenses, which totaled $15.9 million during the first six months of 2009 as compared with $14.1 million during the same six-month period in 2008. The provision for loan losses for the six months ended June 30, 2009 was $6.0 million, representing an increase of $4.1 million, or 220.0%, from the $1.9 million charged to the provision for the six months ended June 30, 2008.
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