BNC Bancor Value Stock - Dividend - Research Selection

BNC Bancorp was formed in 2002 to serve as a one-bank holding company for the Bank, which is based in High Point, North Carolina. BNC is a full service commercial bank, incorporated under the laws of the State of North Carolina on November 15, 1991, that opened for business on December 3, 1991. We are registered with the Board of Governors of the Federal Reserve System (the “Federal Reserve”) under the Bank Holding Company Act of 1956, as amended (the “BHCA”), and the bank holding company laws of North Carolina. BNC operates under the rules and regulations of and is subject to examination by the Federal Deposit Insurance Corporation (“FDIC”) and the North Carolina Office of the Commissioner of Banks (the “NCCOB”). BNC is also subject to certain regulations of the Federal Reserve governing the reserves to be maintained against deposits and other matters. In addition to BNC we also maintain various limited purpose subsidiaries either located in or conducting business primarily in our three-state branch footprint that are closely related or incidental to the business of banking or financial in nature.

We provide a wide range of banking services tailored to the particular banking needs of the communities we serve. We are principally engaged in the business of attracting deposits from the general public and using those deposits, together with other funding from our lines of credit, to make primarily commercial and consumer loans. We have pursued a strategy that emphasizes our local affiliations. This business strategy stresses the provision of high quality banking services to individuals and small to medium-sized local businesses. We also offer a wide range of banking services, including traditional products such as checking and savings accounts. We are also continuously developing new and innovative products and equipping our bankers with new technology to further differentiate us as a community bank with sophisticated product delivery. The Bank conducts operations through 76 full-service banking offices, including 41 branches in North Carolina, 26 branches in South Carolina and nine branches in Virginia. Prior to November 1, 2016, branches in South Carolina and Virginia operated as BNC Bank. On November 1, 2016, the Company unified its brand and now operates as BNC Bank in all markets.

During recent years, we have focused much of our growth and expansion efforts on acquisitions of community banks that align with the Company’s strategy of growth focused within existing markets. As a result of these efforts, we have completed the following whole-bank and branch acquisitions over the past three years:

• On November 1, 2016, we acquired High Point Bank Corporation ("High Point"), the parent company of High Point Bank and Trust Company, a commercial bank with 12 branches in the Greensboro/Winston-Salem, North Carolina area;

• On June 17, 2016, we acquired Southcoast Financial Corporation ("Southcoast"), the parent company of Southcoast Bank, a commercial bank with 10 branches in the Charleston, South Carolina area;

• On October 16, 2015, we acquired seven branch offices from CertusBank, N.A. in Upstate South Carolina (the "Certus branches");

• On July 1, 2015, we acquired Valley Financial Corporation ("Valley"), the parent company of Valley Bank, a commercial bank with nine branches in and around Roanoke, Virginia;

• On December 1, 2014, we acquired Harbor Bank Group, Inc., the parent company of Harbor National Bank, a commercial bank with four branches in Charleston and Mt. Pleasant, South Carolina;

• On June 1, 2014, we acquired Community First Financial Group, the parent company of Harrington Bank, a commercial bank with three branches located in the Raleigh-Durham-Chapel Hill area of North Carolina; and

• On April 1, 2014, we acquired South Street Financial Corp., the parent company of Home Savings Bank of Albemarle, Inc. SSB, a commercial bank with four branches located in the Charlotte, North Carolina area.

These acquisitions have allowed us to increase our presence and build scale in key metropolitan markets and have enhanced our organic growth opportunities.

On January 22, 2017, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Pinnacle Financial Partners, Inc. (“Pinnacle”). Pursuant to the Merger Agreement, the Company will merge with and into Pinnacle and the Bank will merge with and into Pinnacle’s wholly-owned bank subsidiary, Pinnacle Bank. Subject to the terms and conditions of the Merger Agreement, the Company’s shareholders will have the right to receive 0.5235 shares of Pinnacle's common stock for each share of the Company’s common stock. The transaction is expected to close during the third quarter of 2017, subject to shareholder and regulatory approval and other customary closing conditions.