BNC Bancorp, parent company for Bank of North Carolina, reported financial results for the three months ended March 31, 2016.
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Operating earnings were $15.4 million for first quarter 2016. Operating return on average assets was 1.1%. Operating return on average tangible common equity was 14.55%.
Operating earnings per diluted share were $0.38, an increase of 18.8% from first quarter 2015.
Richard D. Callicutt, II, president and CEO, stated, "We are pleased to report solid first quarter results which include a strong 18% year-over-year increase in operating earnings per share, along with continued positive trends in organic loan origination volume and core deposit growth.
"While loan production volume during the quarter remained strong and near all-time highs, the decline in medium-term interest rates over the past six months has resulted in an elevated level of loan payoffs.
"With the dramatic rate declines in January and February, this trend intensified as an unusually large number of credits were refinanced into the permanent markets.
"While net loans increased a modest $37.4 million despite over $400 million of originations during the quarter, our pipeline remains at an all-time high and we anticipate future production volume to remain strong throughout the year.
During the quarter, senior management has been actively working with our banking regulators to gain the necessary approvals for the Southcoast transaction.
"As part of the approval process, we have allocated additional planning, marketing, outreach and credit resources to the underserved within our markets. We have been actively targeting the best talent and building the infrastructure necessary to execute our plan for success in the underserved areas.
"We are confident that the significant progress we have made in this area will position us for more expeditious regulatory approvals in the future and ultimately enhance long-term shareholder value.
"With the delays in closing the Southcoast and High Point transactions, there has been an added layer of uncertainty and anxiety with the employee and customer base of each company.
"The leadership of Wayne Pearson and his team at Southcoast and Mark Williamson and his team at High Point during this time has been unwavering and quite humbling.
"Further, I want to thank each of their employees for continuing to excel for their customers each and every day in the face of this uncertainty; you are another example of the many unsung heroes that make our Company great.
"Over the past month, BNC has been recognized by several publications for its excellent financial performance in 2015. SNL Financial recently rated BNC as one of the top 10 best performing regional banks in the United States for 2015.
"Among the top 25 publicly traded banks that made the SNL Best-Performing list, BNC's shares had the highest total return in 2015, increasing 48.95%.
"In addition, BNC was recently featured in an article in Barron's Magazine touting the substantial upside potential of earnings and tangible book value over the new few years. This type of recognition helps further reinforce that our team's hard work and unwavering commitment continues to make a substantial impact for both our shareholders and our communities."
Total non-interest income was $8.0 million for the first quarter of 2016, a decrease from $8.3 million for the fourth quarter of 2015. Operating non-interest income was $8.0 million for the first quarter, a decrease of $0.2 million from fourth quarter 2015.
Income earned from our mortgage division and SBA division increased by 20.4% and 73.7%, respectively, during the current quarter.
Many of the other non-interest income sources, such as income from recoveries on acquired loans and income derived from our investment brokerage services, are volatile and can vary significantly from period to period.
Total non-interest expense was $34.9 million for the first quarter of 2016, a decrease from $37.6 million for the fourth quarter of 2015.
Operating non-interest expense for the first quarter of 2016 was $33.5 million, an increase compared to $33.3 million for the fourth quarter of 2015." ■