BNC Bancorp swapping preferred stock for debt

The parent company of Bank of North Carolina said Friday that it'll swap out the preferred stock left over from the auction of its federal bailout investment for debt.

In August, the U.S. Treasury sold off the preferred stock it held in BNC Bancorp at a public auction, moving the $31.3 million investment for $28.4 million. The government reported making a profit on the bank overall when dividend payments were included.

BNC said Friday it will redeem the preferred stock from its new owner at its full price, using cash on hand and a $30 million loan from Georgia-based Synovus Bank.

BNC's Chief Operating Officer Richard D. Callicutt said in a statement that regulators' approval of this transaction is a testament to the bank's financial strength.