BNC Bancorp in High Point, N.C., increased profits by nearly two-thirds thanks to higher net interest income and other factors.
BNC reported net income of $8.3 million in the third quarter compared with $5 million a year earlier. Its non-GAAP earnings per share of 33 cents exceeded by 2 cents the estimates from analysts polled by Bloomberg.
Net interest income was $38.1 million, up 33.7% from 2013's third quarter, while net interest margin rose 28 basis points to 4.54%. Increased interest-earning assets and lower deposit costs contributed to those improvements.
Noninterest income rose approximately 8.7%, to $6.3 million.
Noninterest expense rose 25%, to $29.8 million, because of the acquisitions of Community First Financial Group and South Street Financial in the second quarter as well as other factors. A deal for Harbor Bank Group in Charleston, S.C., is expected to close this December, BNC's Chief Executive officer Richard D. Callicutt II said in a news release Friday.