U.S. Treasury Closes Sale Of BNC Bancorp Preferred Stock BNC BANCORP REPURCHASES WARRANT FROM US TREASURY
HIGH POINT, N.C., Sept. 20, 2012 /PRNewswire/ -- BNC Bancorp (Nasdaq: BNCN) announced that on August 29, 2012, the United States Department of the Treasury ("Treasury") closed the sale of all its 31,260 shares of BNC Bancorp's Fixed Rate Cumulative Perpetual Preferred Stock, Series A in a secondary public offering at a price of $921.23 per share.
BNC Bancorp also announced that yesterday it completed the repurchase of the warrant issued to Treasury as part of the TARP Capital Purchase Program. The warrant provided Treasury with the right to purchase 543,337 shares of BNC Bancorp's common stock at $8.63 per share. BNC Bancorp and Treasury agreed upon a repurchase price of $939,920 for the warrant.
Following the repurchase of the warrant, Treasury has no remaining equity stake in BNC Bancorp and BNC Bancorp is no longer a participant in the TARP Capital Purchase Program.
BNC commenced its participation in the TARP program in December 2008. Since that time BNC has originated more than $850 million in loans and added an additional 369 employees. From BNC Bancorp, Treasury received a total of $5.7 million in dividends and an additional $939,920 in connection with the repurchase of the warrant. In all, the Treasury and the taxpayers netted a return of 16.7% on their investment in BNC Bancorp.
President and Chief Executive Officer Swope Montgomery commented, "For us, the Capital Purchase Program did what it set out to do. It helped a healthy bank like Bank of North Carolina further enhance its capital levels in a tough economy which allowed us to continue to lend to small businesses and individuals in our local markets, create jobs and expand our brand of personalized customer service throughout the Carolinas. In addition, our repurchase of the warrant from Treasury was a prudent and appropriate investment that will limit future shareholder dilution."
About BNC Bancorp and Bank of North Carolina
BNC Bancorp is the parent company of Bank of North Carolina, an approximately $2.7 billion-asset commercial bank. Bank of North Carolina provides banking and financial services to individuals and businesses through its 33 full-service banking offices in North and South Carolina. Bank of North Carolina is insured by the FDIC and is an equal housing lender. BNC Bancorp's stock is quoted in the NASDAQ Capital Market under the symbol "BNCN."
Forward Looking Statements
This news release may contain forward-looking statements about BNC Bancorp, which it intends to be covered under the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements, including the statement in this release regarding the expected effect to shareholders of the repurchase. You are cautioned that forward-looking statements involve uncertainties, and important factors could cause actual results to differ materially from those anticipated. For a discussion of other risks that may cause actual results to differ from expectations, please see BNC Bancorp's Annual Report on Form 10-K for the year ended December 31, 2011 and other periodic reports on file with the SEC, including the sections entitled "Risk Factors." These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Forward-looking statements speak only as of the date they are made, and the BNC Bancorp undertakes no obligation to update them in light of new information or future events.
SOURCE BNC Bancorp