SterlingSouth Bank & Trust Company Reports Record Profits

Business Wire, April 27, 2006

GREENSBORO, N.C. -- Today SterlingSouth Bank & Trust Company (OTCBB:SSBT) reported that pre-tax income excluding merger-related expenses for the first quarter of 2006 was $499,000 up 107% when compared with pre-tax income of $241,000 for the first quarter of 2005.

The bank also reported that net income for the first quarter of 2006 was $333,000, or $0.23 per diluted share. These results reflect increases of 38% and 21%, respectively, compared with net income of $241,000, or $0.19 per diluted share, earned in the first quarter of 2005.

Merger-related expenses in the first quarter were $63,000 and are associated with the previously reported Agreement and Plan of Reorganization and Merger between BNC Bancorp (BNC) (NASDAQ: BNCN) and SterlingSouth Bank & Trust Company pursuant to which BNC proposes to acquire SterlingSouth, subject to regulatory approval and approval by the shareholders of BNC and SterlingSouth.

In the first quarter of 2006, SterlingSouth began recording income tax expense since the Bank's cumulative profitability in recent years was sufficient to use all of its net operating losses incurred in the first few years of operations. In the first quarter of 2005, the Bank recorded no income tax expense. In the first quarter of 2006, the Bank recorded $103,000 of income tax expense.

Total assets were $162 million on March 31, 2006, up 19% when compared with March 31, 2005. Loans outstanding in the first quarter of 2006 were $127 million, up 21% when compared with 2005. Deposits as of March 31, 2006, were $139 million up 23% when compared with 2005.

Commenting on the first quarter performance Ralph Strayhorn, President and CEO said, "We are very pleased with our first quarter performance. The earnings momentum we experienced in 2005 is continuing into 2006. In addition, we are excited about the growth opportunities associated with our new branch in downtown Greensboro which opened in March."

SterlingSouth provides a full range of financial services to individuals, businesses and professional partnerships such as personal and corporate accounts, mortgage and retail loans, business vehicle and equipment leasing, certificates of deposit, credit cards, personal and corporate lines of credit, retirement accounts, wealth management, and on-line banking. SterlingSouth is headquartered in Greensboro and currently serves the area from three offices - one at 1110 Dover Road in Irving Park, 112 N. Elm St in downtown Greensboro, and its headquarters at 3202 Northline Avenue at Friendly Center. On February 6, 2006 SterlingSouth entered into a definitive agreement to be acquired by BNC Bancorp, Thomasville, NC. BNC Bancorp is the parent company of Bank of North Carolina. The transaction is expected to be completed in the third quarter of 2006. The combined companies will have 11 full service banking offices located throughout the Triad region and surrounding areas.

Additional information about SterlingSouth is available on its web site at www.sterlingsouth.com.

The information as of and for the quarter ended March 31, 2006 as presented is unaudited. This news release contains forward-looking statements. The actual results might differ materially from those projected in the forward-looking statements for various reasons, including our limited operating history, substantial changes in financial markets, regulatory changes, changes in interest rates, loss of deposits and loan demand to other savings and financial institutions, and changes in real estate values and the real estate market. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Bank's FDIC filings, including its periodic reports under the Securities Exchange Act of 1934, as amended, copies of which are available upon request from the Bank.