BNC Bancorp finishes federal bailout exit

BNC Bancorp has fully extricated itself from the federal bailout program, reporting in a securities filing Thursday that the bank repurchased a warrant held by the U.S. Treasury.

The parent company of Bank of North Carolina paid $939,920 to buy back the warrant, which gave the government the right to buy 543,337 common shares in the company at $8.63 per share.

The Treasury auctioned off the preferred stock it held in the bank last month, selling the $31.3 million it held for a total of $28.4 million. Including dividend payments BNC had made, the government reported making a profit on the investment.

"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," CEO Swope Montgomery said in a statement. "In addition, our repurchase of the warrant from Treasury was a prudent and appropriate investment that will limit future shareholder dilution."

The bank's shares closed Thursday at $7.82.