BNC Bancorp Announces 161% increase in Net Income for Third Quarter 2009

THOMASVILLE, N.C., Oct. 22 /PRNewswire-FirstCall/ -- BNC Bancorp (Nasdaq:
BNCN) today reported earnings for the third quarter of 2009. For the third
quarter, net income totaled $1.95 million, an increase of 161% from the
$747,000 earned in the third quarter of 2008.

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For the third quarter, net income available to common shareholders totaled
$1.45 million, or $0.20 per diluted common share, an increase of 95% compared
to net income available to common shareholders of $747,000, or $0.10 per
diluted common share, for the third quarter of 2008.

For the nine months ended September 30, 2009, net income available to common
shareholders totaled $3.26 million, or $0.44 per diluted common share, as
compared to the same nine-month period of 2008 that resulted in net income
available to common shareholders of $3.36 million, or $.45 per diluted share.
For the nine months ended September 30, 2009, the Company reported gains on
sales of investment securities in the amount of $1.9 million, which partially
offset the increases of FDIC assessments and provision for loan losses in the
amounts of $1.7 million and $6.6 million, respectively, when compared to the
same period in 2008. Additionally, the Company reported dividends and
accretion on preferred stock in the amount of $1.49 million for the current
nine-month period.

Total assets as of September 30, 2009 were $1.70 billion, an increase of 35%
compared with $1.26 billion as of September 30, 2008. Total loans on September
30, 2009 were $1.05 billion, an increase of 4% from the $1.01 billion reported
as of September 30, 2008. Investment securities increased $304.8 million, or
284%, when compared to the $107.4 million outstanding at September 30, 2008.
Deposits increased 40% over the same one-year period. During the first quarter
of 2009, management negotiated a $250 million money market funding arrangement
which carries a fixed effective cost of 2.95% over the five year period.

Commenting on the results, W. Swope Montgomery, Jr., President and CEO, noted,
"We are pleased with the results for the quarter, especially the continued
growth in earnings, the consistent improvement in our net interest margin, and
the stability of our asset quality in this challenging credit environment."

Mr. Montgomery continued, "Earnings available to common shareholders were
$0.20 per diluted share, which represents a significant increase from the
levels reported in linked and year ago quarters. During the third quarter,
particularly due to our new office in Concord and several strategic hires of
seasoned bankers from regional and national banks, we began to experience net
growth in our loan portfolio. We chose to unwind some of the securities
leverage transaction that occurred in late 2008 to fund this core loan growth,
resulting in a $1.9 million gain on the sale of these securities. This
windfall was used to increase our allowance for loan losses during the
quarter, staying consistent with our commitment to continually augment the
strength of our balance sheet."

Provision for Loan Losses and Asset Quality
The provision for credit losses was $5.0 million in the third quarter of 2009,
compared with $2.5 million in the third quarter of 2008 and $3.0 million in
the second quarter of 2009. Net charge-offs of loans during the recent
quarter were $3.4 million, compared to $1.2 million for the third quarter of
2008 and $2.4 million for the second quarter of 2009. Expressed as an
annualized percentage of average loans outstanding, net charge-offs were 1.28%
and 0.46% in the third quarters of 2009 and 2008, respectively, and 0.98% in
the second quarter of 2009. Non-performing assets (NPA's) as a percentage of
total assets at September 30, 2009 were at 1.43%, an increase from the 0.89%
at September 30, 2008 and 1.18% at June 30, 2009. The allowance for loan and
lease losses at September 30, 2009 increased $2.8 million, or 20%, from levels
a year ago and $1.6 million, or 11% from the second quarter of 2009. The
allowance for loan and lease losses of $16.7 million is 1.59% of total loans
outstanding at September 30, 2009, up from the 1.38% reported at September 30,
2008, and up from the 1.48% of total loans outstanding for the second quarter
of 2009. Total loans more than 30 days past due decreased to $5.4 million at
September 30, 2009 from $8.9 million at June 30, 2009, primarily as the result
of two credits totaling $4.8 million being paid current.

Mr. Montgomery noted that, "Non-performing assets to total assets increased to
1.43% at the end of the third quarter, compared to 1.18% at the end of the
second quarter. This increase was primarily related to the movement of one
large A&D loan in the Kannapolis, North Carolina market to non-accrual status.
The loan has been written down and reserved based on recent appraisals to
current market levels. Despite the increase in NPA's in the third quarter,
this ratio still compares favorably to our Federal Reserve district, state and
national peers, and while we have been aggressively moving these assets
through our system, as indicated previously, we would expect to see an
increase in non-performers as this challenging credit market lingers."

Montgomery continued, "We continue to include tabular information that
provides greater transparency into the mix and stratification within certain
classifications of our loan portfolio. It is important to note that we have
made significant strides in the reduction of our Construction and Acquisition
& Development (A&D) portfolios over the past year. At the end of the third
quarter of 2009, we have reduced our residential and commercial construction
portfolios by over 38% from year ago levels, and have reduced speculative 1-4
family construction loans with balances above $400,000 to $12.8 million, down
from $25.3 million one year ago."

"Residential and Commercial A&D continues to be the area of our portfolio that
is being most affected by the current economic downturn. Over the past year
we have reduced outstanding balances 33%, or $22 million. As apparent in the
tables, we have only two A&D loans in the portfolio with balances greater than
$5 million, both of which remain viable projects. The remaining A&D exposure
is diversified across our market area, with the largest single credit outside
of the two mentioned above currently at $4.2 million. We have seen an increase
in the velocity of activity related to remaining viable projects and lots with
completed infrastructure. Remaining speculative inventory has continued to
decline at a rate above the market average as we work with customers and
buyers to move properties. We are cautiously optimistic that this
liquidation rate will continue and that we will be in position to divest
further A&D projects either by complete sale or by entering into scheduled
takedown arrangements with qualified cash buyers," said Mr. Montgomery.

Net interest income on a fully taxable equivalent (FTE) basis was $13.4
million for the third quarter of 2009, compared to $12.7 million for second
quarter of 2009 and $8.9 million for the third quarter of 2008. The increase
in net interest income in the third quarter 2009 is primarily due to average
loans increasing to $1.06 billion compared to $998.2 million for the second
quarter of 2009 and overall funding costs decreasing by 17 basis points from
2.35% to 2.18% for the same period. The third quarter 2009 net interest
margin on a fully taxable equivalent basis was 3.47%, compared to 3.39% and
3.16% for the second quarter of 2009 and third quarter of 2008, respectively.

On October 20, 2009, the Board of Directors declared a $0.05 per share
quarterly dividend, payable November 27, 2009 to shareholders of record on
November 13, 2009.

BNC Bancorp is the parent company of Bank of North Carolina, a $1.7 billion
commercial bank that provides a complete line of banking and financial
services to individuals and businesses through full-service banking offices
located in the cities of Thomasville, High Point, Salisbury, Concord,
Greensboro, Archdale, Lexington, Kernersville, Harrisburg, Welcome and Oak
Ridge, North Carolina. In addition, the Bank operates limited service banking
offices in Winston-Salem and Mooresville, North Carolina. Bank of North
Carolina is insured by the FDIC and is an equal housing lender. BNC Bancorp is
current on its preferred dividend payments to the United States Treasury and
its stock is quoted in the NASDAQ Capital Market under the symbol "BNCN."

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" measures such as
"core" or "recurring" earnings in their 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.

From time to time, we make written and oral forward-looking statements within
the meaning of certain securities laws, including in this press release, in
other filings with the U.S. Securities and Exchange Commission, in reports to
shareholders and in other communications. These forward-looking statements
include, among others, statements with respect to our objectives for 2009 and
beyond, and the medium and long terms strategies to achieve those objectives,
as well as statements with respect to our beliefs, plans, expectations,
anticipations, estimates and intentions.

By their very nature, forward-looking statements involve inherent risks and
uncertainties, both general and specific, and risks exist that predictions,
forecasts, projections and other forward-looking statements will not be
achieved. We caution readers not to place undue reliance on these statements
which speak only as of the date hereof, as a number of important factors could
cause actual results to differ materially from the plans, objectives,
expectations, estimates and intentions expressed in such forward-looking
statements. These factors include, but are not limited to, the strength of the
North Carolina economy and real estate markets in general and the strength of
the local economies and real estate markets within North Carolina in which we
conduct operations; the economic conditions in the United States and the
relative strength and stability of other financial institutions; the effects
of changes in monetary and fiscal policy, including changes in interest rate
policies of the Board of Governors of the Federal Reserve System in the United
States; judicial decisions; the effects of competition in the markets in which
we operate; inflation; the timely development and introduction of new products
and services in receptive markets; the impact of changes in the laws and
regulations regulating financial services (including banking, insurance and
securities); changes in tax laws; technological changes; our ability to
complete strategic acquisitions and to integrate acquisitions; judicial or
regulatory proceedings; changes in consumer spending and saving habits; the
possible impact on our businesses of international conflicts and other
developments including those relating to the war on terrorism; and our
anticipation of and success in managing the risks implicated by the foregoing.

QUARTERLY PERFORMANCE SUMMARY
BNC BANCORP
(Dollars in thousands, except per share data)
(Unaudited) For the
Three Months Ended
------------------
September September
30, 2009 30, 2008
---------- ----------
SUMMARY STATEMENTS OF OPERATIONS
Interest income $20,107 $17,409 15.5%
Interest expense 7,927 8,893 (10.9)
Net interest income 12,180 8,516 43.0
Provision for loan losses 5,000 2,500 100.0
Net interest income after
provision for loan losses 7,180 6,016 19.4
Noninterest income 3,328 1,328 150.6
Noninterest expense 8,417 6,716 25.3
Income before income tax expense 2,091 628 233.0
Provision for income taxes 138 (119) (216.0)
Net income 1,953 747 161.5
Preferred stock dividends and
discount accretion 499 - (100.0)
Net income available to common
shareholders 1,454 747 94.7

PER SHARE DATA
Earnings per share, basic $0.20 $0.10 97.3%
Earnings per share, diluted $0.20 $0.10 97.0
Tangible common book value per share $9.27 7.88

Weighted average common shares
outstanding:
Basic 7,370,128 7,357,677
Diluted 7,381,956 7,402,167

PERFORMANCE RATIOS
Return on average assets 0.47% 0.25%
Return on average common equity 5.94% 3.45%
Return on average tangible common
equity 8.33% 5.10%
Net yield on earning assets
(taxable equivalent) 3.47% 3.16%
Average equity to average assets 7.70% 7.14%
Allowance for loan losses as
a % of total loans 1.59% 1.38%
Non-performing assets to
total assets, end of period 1.43% 0.89%
Ratio of net charge-offs to average
loans, annualized 1.28% 0.46%

QUARTERLY PERFORMANCE SUMMARY
BNC BANCORP
(Dollars in thousands, except per share data)
(Unaudited) For the
Nine Months Ended
-----------------
September September
30, 2009 30, 2008 % Change
---------- ---------- --------

SUMMARY STATEMENTS OF OPERATIONS
Interest income $59,496 $52,993 12.3%
Interest expense 25,317 28,086 (9.9)
Net interest income 34,179 24,907 37.2
Provision for loan losses 11,000 4,375 151.4
Net interest income after
provision for loan losses 23,179 20,532 12.9
Noninterest income 5,756 4,328 33.0
Noninterest expense 24,297 20,837 16.6
Income before income tax expense 4,638 4,023 15.3
Provision for income taxes (112) 661 (116.9)
Net income 4,750 3,362 41.3
Preferred stock dividends and
discount accretion 1,486 - (100.0)
Net income available
to common shareholders 3,264 3,362 (2.9)

PER SHARE DATA
Earnings per share, basic $0.44 $0.46 -3.3%
Earnings per share, diluted $0.44 $0.45 (1.3)

Weighted average common shares
outstanding:
Basic 7,339,561 7,312,166
Diluted 7,347,066 7,408,839

PERFORMANCE RATIOS
Return on average assets 0.39% 0.38%
Return on average common equity 4.61% 5.16%
Return on average tangible common
equity 6.54% 7.64%
Net yield on earning assets
(taxable equivalent) 3.35% 3.18%
Average equity to average assets 7.64% 7.29%
Allowance for loan losses as
a % of total loans 1.59% 1.38%
Non-performing assets to
total assets, end of period 1.43% 0.89%
Ratio of net charge-offs
to average loans, annualized 0.99% 0.32%

QUARTERLY PERFORMANCE SUMMARY
BNC BANCORP
(Dollars in thousands, except per share data)
(Unaudited) For the
Three Months Ended
------------------
September June March
30, 2009 30, 2009 31, 2009
---------- -------- --------
SUMMARY STATEMENTS OF OPERATIONS
Interest income $20,107 $19,848 $19,541
Interest expense 7,927 8,264 9,126
Net interest income 12,180 11,584 10,415
Provision for loan losses 5,000 3,000 3,000
Net interest income after
provision for loan losses 7,180 8,584 7,415
Noninterest income 3,328 1,210 1,218
Noninterest expense 8,417 8,494 7,386
Income before income tax expense 2,091 1,300 1,247
Provision for income taxes 138 (130) (120)
Net income 1,953 1,430 1,367
Preferred stock dividends and
discount accretion 499 496 491
Net income available to common
shareholders 1,454 934 876

Net interest income, as reported $12,180 $11,584 $10,415
Tax-equivalent adjustment 1,200 1,134 970
Net interest income, tax-equivalent 13,380 12,718 11,385

PER SHARE DATA
Earnings per share, basic $0.20 $0.13 $0.12
Earnings per share, diluted 0.20 0.13 0.12

Weighted average common shares
outstanding:
Basic 7,370,128 7,339,809 7,338,860
Diluted 7,381,956 7,345,069 7,343,529

PERFORMANCE RATIOS
Return on average assets 0.47% 0.35% 0.35%
Return on average common equity 5.94% 3.92% 4.63%
Return on average tangible common
equity 8.33% 5.55% 6.03%
Net yield on earning assets (taxable
equivalent) 3.47% 3.39% 3.11%
Average equity to average assets 7.70% 5.91% 7.51%
Non-performing assets to total
assets, end of period 1.43% 1.18% 1.12%
Ratio of net charge-offs to
average loans, annualized 1.28% 0.98% 0.70%

For the
Three Months Ended
------------------
December September December
31, 2008 30, 2008 31, 2007
--------- ------------ -----------
SUMMARY STATEMENTS OF OPERATIONS
Interest income $18,041 $17,409 $19,262
Interest expense 9,340 8,893 11,003
Net interest income 8,701 8,516 8,259
Provision for loan losses 2,700 2,500 750
Net interest income after
provision for loan losses 6,001 6,016 7,509
Noninterest income 1,323 1,328 1,483
Noninterest expense 6,945 6,716 6,839
Income before income tax expense 379 628 2,153
Provision for income taxes (247) (119) 600
Net income 626 747 1,553
Preferred stock dividends and discount
accretion 143 - -
Net income available to common
shareholders 483 747 1,553

Net interest income, as reported $8,701 $8,516 $8,259
Tax-equivalent adjustment 548 424 360
Net interest income, tax-equivalent 9,249 8,940 8,619

PER SHARE DATA
Earnings per share, basic $0.07 $0.10 $0.22
Earnings per share, diluted 0.07 0.10 0.22

Weighted average common shares
outstanding:
Basic 7,354,164 7,357,677 6,914,320
Diluted 7,367,906 7,402,167 7,097,902

PERFORMANCE RATIOS
Return on average assets 0.19% 0.25% 0.56%
Return on average common equity 2.91% 3.45% 7.61%
Return on average tangible common
equity 4.33% 5.10% 11.70%
Net yield on earning assets (taxable
equivalent) 3.02% 3.16% 3.37%
Average equity to average assets 6.43% 7.14% 7.29%
Non-performing assets to total
assets, end of period 1.17% 0.89% 0.54%
Ratio of net charge-offs to
average loans, annualized 1.31% 0.46% 0.26%

QUARTERLY PERFORMANCE SUMMARY
BNC BANCORP
(Dollars in thousands)
(Unaudited) As of
-------
September September
30, 2009 30, 2008 % Change
---------- ---------- --------
SELECTED BALANCE SHEET DATA
End of period balances

Total loans $1,047,826 $1,006,866 4.1%
Allowance for loan losses 16,686 13,894 20.1
Loans, net of allowance for loan
losses 1,031,140 992,972 3.8
Investment securities 412,139 107,372 283.8
Total Assets 1,704,645 1,262,581 35.0

Deposits:
Noninterest-bearing deposits 60,691 64,880 (6.5)
Interest-bearing demand and
savings 568,527 183,370 210.0
CD's and other time deposits 802,951 776,978 3.3
Total deposits 1,432,169 1,025,228 39.7
Borrowed Funds 139,554 146,306 (4.6)
Total interest-bearing
liabilities 1,511,032 1,106,654 36.5
Shareholders' Equity 125,031 84,885 47.3

As of
-------
September 30, June 30, March 31,
2009 2009 2009
------------- ------------ ------------
SELECTED BALANCE SHEET DATA
End of period balances

Total loans $1,047,826 $1,015,115 $1,004,814
Allowance for loan losses 16,686 15,067 14,504
Loans, net of allowance
for loan losses 1,031,140 1,000,048 990,310
Investment securities 412,139 455,794 460,768
Total Assets 1,704,645 1,599,863 1,590,532

Deposits:
Noninterest-bearing
deposits 60,691 62,929 60,465
Interest-bearing
demand and savings 568,527 479,218 451,453
CD's and other time
deposits 802,951 800,281 774,682
Total Deposits 1,432,169 1,342,428 1,286,600
Borrowed Funds 139,554 125,008 167,767
Total interest-bearing
liabilities 1,511,032 1,404,507 1,393,902
Shareholders' Equity 125,031 123,818 118,023

As of
-------
December 31, September 30, December 31,
2008 2008 2007
------------ ------------- ------------
SELECTED BALANCE SHEET DATA
End of period balances

Total loans $1,007,788 $1,006,866 $932,562
Allowance for loan
losses 13,210 13,894 11,784
Loans, net of allowance
for loan losses 994,578 992,972 920,778
Investment securities 422,564 107,372 86,683
Total Assets 1,572,876 1,262,581 1,130,112

Deposits:
Noninterest-bearing
deposits 61,927 64,880 67,552
Interest-bearing
demand and savings 183,310 183,370 216,896
CD's and other time
deposits 900,776 776,978 570,682
Total Deposits 1,146,013 1,025,228 855,130
Borrowed Funds 299,856 146,306 182,641
Total interest-bearing
liabilities 1,383,942 1,106,654 970,219
Shareholders' Equity 120,680 84,885 86,392

QUARTERLY PERFORMANCE SUMMARY
BNC BANCORP
(Dollars in thousands)
(Unaudited)

For the Three Month Period Ended
--------------------------------
September 30, June 30, March 31,
2009 2009 2009
------------ -------- ---------
SELECTED BALANCE SHEET DATA
Quarterly average balances

Loans, net $1,056,363 $998,214 $993,306
Investment securities 431,647 461,578 448,808
Total earning assets 1,531,508 1,502,674 1,484,754
Total Assets 1,640,551 1,619,859 1,594,331

Deposits:
Noninterest-bearing
deposits 64,656 66,940 63,362
Interest-bearing demand
and savings 506,933 464,048 320,930
CD's and other time
deposits 800,739 798,282 861,504
Total Deposits 1,372,328 1,329,270 1,245,796
Borrowed Funds 133,764 149,312 222,520
Total interest-bearing
liabilities 1,441,436 1,411,642 1,404,954
Shareholders' Equity 126,253 124,865 119,787

For the Three Month Period Ended
--------------------------------
December 31, September 30, December 31,
2008 2008 2007
----------- ------------ -----------
SELECTED BALANCE SHEET DATA
Quarterly average balances

Loans, net $998,644 $992,383 $909,571
Investment securities 197,878 105,804 81,632
Total earning assets 1,222,102 1,110,553 1,008,427
Total Assets 1,328,919 1,219,177 1,109,313

Deposits:
Noninterest-bearing
deposits 72,586 69,599 68,992
Interest-bearing
demand and savings 173,218 181,599 215,630
CD's and other time
deposits 822,048 721,192 590,648
Total Deposits 1,067,852 972,390 875,270
Borrowed Funds 169,431 154,906 149,254
Total interest-bearing
liabilities 1,164,697 1,057,697 955,532
Shareholders' Equity 85,447 87,024 80,919

BNC Bancorp
Loan Mix and Stratification Statistics
As of
September 30,
--------------
2009 2008 % Change
--------------------------- ---- ---- --------
Construction, A&D, and Land $243.7 $306.2 (20.4)
--------------------------- ------ ------ -----
Residential Construction 57.1 89.3 (36.1)
Presold 17.3 19.2 (9.9)
Speculative 39.8 70.1 (43.2)
Loan size -
Over $400,000 12.8 25.3 (49.4)
Loan size -
$200,000 to
$400,000 17.7 26.6 (33.5)
Loan size -
under $200,000 9.3 18.2 (48.9)

Commercial Construction 38.5 65.8 (41.5)
Loan size - $5 million
to $8 million 6.7 - -
Loan size - $3 million
to $5 million 6.9 31.8 (78.3)
Loan size - $1 million
to $3 million 16.1 19.6 (17.9)
Loan size - under $1
million 8.8 14.4 (38.9)

Residential and Commercial A&D 44.0 66.0 (33.3)
Loan size - $5 million
to $6 million 11.6 5.6 107.1
Loan size - $3 million
to $5 million 14.4 17.4 (17.2)
Loan size - $1 million
to $3 million 14.8 31.3 (52.7)
Loan size - under $1
million 3.2 11.7 (72.7)

Land 104.0 85.1 22.2
Residential Buildable
Lots 42.2 26.6 58.7
Commercial Buildable
Lots 18.7 13.8 35.5
Land held for
development 29.2 30.0 (2.7)
Raw and Agricultural
Land 13.9 14.7 (5.4)

--------------------------------------------------------------
Commercial Real Estate $416.7 $340.2 22.5
--------------------------------------------------------------
Multi-Family 29.0 10.8 168.5
Churches 13.9 13.4 3.7
Retail 273.5 217.7 25.6
Owner Occupied 75.4 66.8 12.9
Investment 198.1 150.9 31.3
Loan size - $5 million
to $6 million 26.1 12.1 115.7
Loan size - $3 million
to $5 million 31.4 19.1 64.4
Loan size - $1 million
to $3 million 64.0 59.4 7.7
Loan size - under $1
million 76.6 60.3 27.0
Industrial 97.1 93.0 4.4
Owner Occupied 34.4 34.5 (0.3)
Investment 62.7 58.5 7.2
Loan size - $5 million
to $6 million 5.1 5.1 0.0
Loan size - $3 million
to $5 million 3.4 3.5 (2.9)
Loan size - $1 million
to $3 million 26.8 22.9 17.0
Loan size - under
$1 million 27.4 27.0 1.5
Other 3.2 5.3 (39.6)

BNC Bancorp
Loan Mix and Stratification Statistics
Trends
----------
September 30, June 30, March 31,
2009 2009 2009
----------------- ------------ ------- --------
Construction, A&D,
and Land $243.7 $248.9 $250.4
------------------ ------ ------ ------
Residential
Construction 57.1 63.2 73.1
Presold 17.3 18.4 19.4
Speculative 39.8 44.8 53.7
Loan size -
Over $400,000 12.8 13.5 16.1
Loan size -
$200,000 to
$400,000 17.7 11.8 24.8
Loan size -
under $200,000 9.3 19.5 12.8

Commercial
Construction 38.5 34.3 30.9
Loan size -
$5 million
to $8
million 6.7 - -
Loan size -
$3 million
to $5
million 6.9 6.5 3.6
Loan size -
$1 million
to $3
million 16.1 18.9 16.8
Loan size -
under $1
million 8.8 8.9 10.5

Residential and
Commercial A&D 44.0 55.6 63.4
Loan size -
$5 million
to $6
million 11.6 17.3 17.0
Loan size -
$3 million
to $5
million 14.4 9.8 6.6
Loan size -
$1 million
to $3
million 14.8 22.1 31.4
Loan size -
under $1
million 3.2 6.4 8.4

Land 104.0 95.8 83.0
Residential
Buildable Lots 42.2 33.5 25.7
Commercial
Buildable Lots 18.7 17.9 17.3
Land held for
development 29.2 30.0 25.6
Raw and
Agricultural
Land 13.9 14.4 14.4
--------------------------------------------------------------
Commercial Real Estate $416.7 $391.0 $391.6
--------------------------------------------------------------
Multi-Family 29.0 28.0 26.4
Churches 13.9 13.1 12.8
Retail 273.5 250.2 253.1
Owner Occupied 75.4 72.8 73.3
Investment 198.1 177.4 179.8
Loan size -
$5 million to
$6 million 26.1 20.2 20.3
Loan size -
$3 million to
$5 million 31.4 26.7 30.2
Loan size - $1
million to $3
million 64.0 67.5 69.0
Loan size -
under $1
million 76.6 62.9 60.3

Industrial 97.1 94.1 93.7
Owner Occupied 34.4 34.0 35.0
Investment 62.7 60.1 58.7
Loan size -
$5 million to
$6 million 5.1 5.1 5.1
Loan size - $3
million to $5
million 3.4 3.4 3.4
Loan size - $1
million to $3
million 26.8 24.6 22.7
Loan size -
under $1
million 27.4 27.0 27.5

Other 3.2 5.6 5.6

Trends
-----------
December 31, September 30,
2008 2008
--------------------------------------------------------------
Construction, A&D, and Land $306.7 $306.2
--------------------------------------------------------------
Residential Construction 78.9 89.3
Presold 20.2 19.2
Speculative 58.7 70.1
Loan size - Over
$400,000 18.6 25.3
Loan size -
$200,000 to $400,000 24.6 26.6
Loan size - under
$200,000 15.5 18.2

Commercial Construction 73.7 65.8
Loan size - $5 million
to $8 million - -
Loan size - $3 million
to $5 million 40.9 31.8
Loan size - $1 million
to $3 million 15.6 19.6
Loan size - under
$1 million 17.2 14.4

Residential and Commercial A&D 70.7 66.0
Loan size - $5 million
to $6 million 16.8 5.6
Loan size - $3 million
to $5 million 7.5 17.4
Loan size - $1 million
to $3 million 36.0 31.3
Loan size - under
$1 million 10.4 11.7

Land 83.7 85.1
Residential Buildable
Lots 25.6 26.6
Commercial Buildable
Lots 15.1 13.8
Land held for development 28.3 30.0
Raw and Agricultural Land 14.7 14.7

--------------------------------------------------------------
Commercial Real Estate $349.7 $340.2
--------------------------------------------------------------
Multi-Family 11.3 10.8
Churches 13.0 13.4
Retail 225.9 217.7
Owner Occupied 71.3 66.8
Investment 154.6 150.9
Loan size - $5 million
to $6 million 12.0 12.1
Loan size - $3 million
to $5 million 22.0 19.1
Loan size - $1 million
to $3 million 63.5 59.4
Loan size - under $1
million 57.1 60.3

Industrial 93.8 93.0
Owner Occupied 35.2 34.5
Investment 58.7 58.5
Loan size - $5 million
to $6 million 5.1 5.1
Loan size - $3 million
to $5 million 3.4 3.5
Loan size - $1 million
to $3 million 22.8 22.9
Loan size - under $1
million 27.4 27.0

Other 5.7 5.3

SOURCE BNC Bancorp

W. Swope Montgomery, Jr., President and CEO, +1-336-869-9200