BNC Bancorp (BNCN) in High Point, N.C., reported lower third-quarter income because of costs related to recent acquisitions.
The $2.7 billion-asset company posted earnings of $788,000, down 57% from a year earlier. Excluding one-time transaction related expenses, income totaled $2.6 million, up 4% from a year earlier.
BNC recorded $1.9 million in expenses associated with acquisition activities and exiting the Troubled Asset Relief Program, the company said Monday. During the quarter, the company converted the core systems and operations of KeySource in Durham, N.C., and the accounts and operations of two branches purchased from Hampton Roads Bankshares.
It also repurchased a stock warrant issued to the Treasury Department under Tarp. Treasury sold its preferred shares in BNC in August.
Net interest income totaled $19.8, up 17% year over year. Noninterest income rose almost 37%, to $5.3 million, from a year earlier as mortgage fees tripled, to $1.8 million.
Noninterest expense climbed more than 38%, to $20.4 million, year over year, as salaries and employee benefits increased because of acquisitions made since the fourth quarter of 2011, the company said. Insurance and professional services costs increased almost 220%, to $2.1 million year over year.