Employee Benefit Plans

6 Months Ended

Jun. 30, 2013

Share-Based Compensation [Abstract]

Share-based Compensation [Text Block]

In May 2013, the Company's shareholders approved the BNC Bancorp 2013 Omnibus Stock Incentive Plan (the “2013 Omnibus Plan”). The Compensation Committee may grant or award eligible participants with stock options, rights to receive restricted shares of common stock, restricted stock units, stock appreciation rights, and other stock-based awards or any combination of awards (collectively referred to herein as “Rights”). No further awards will be granted under the previous BNC Bancorp Omnibus Stock Ownership and Long Term Incentive Plan (the “2006 Omnibus Plan”). At June 30, 2013, the Company had 450,419 grants of Rights issued under the 2006 Omnibus Plan.At June 30, 2013, the Company had 20,000grants of Rights issued and 1,480,000Rights available for grants or awards under the 2013 Omnibus Plan.

On September 14, 2012, the Company merged with KeySource and assumed all of the outstanding and unexercised stock options from KeySource's non-statutory and incentive stock option plans. As a result, 328,821 fully vested shares were assumed at a weighted average exercise price of $11.04 per share, with a remaining contractual term of 4.86 years. At June 30, 2013, the Company had 308,821 grants of stock options issued and 35,607 stock options available for issuance related to these plans.

Stock Option Awards. The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option pricing model. The risk-free interest rate is based on the U.S. Treasury rate for the expected life at the time of grant. Volatility is based on the average volatility of the Company based upon previous trading history. The expected life and forfeiture assumptions are based on historical data. Dividend yield is based on the yield at the time of the option grant. There were no grants of options during the six months ended June 30, 2013.

A summary of stock option activity for the six months ended June 30, 2013 is presented below (dollars in thousands, except per share data):
				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
		Exercise		Contractual	Intrinsic
	Shares	Price		Term	Value
Outstanding at December 31, 2012	436,939	$	11.32
Exercised	0		0
Forfeited or expired	0		0
Outstanding at June 30, 2013	436,939	$	11.32	3.7 years	$	218
Exercisable at June 30, 2013	431,315	$	11.35	3.6 years	$	202
Share options expected to vest	5,624	$	8.71	6.4 years	$	15

The related compensation expense recognized for stock option awards was $7,000 for the six months ended June 30, 2013and 2012, respectively. As of June 30, 2013, there was $10,000of total unrecognized compensation cost related to non-vested stock options granted under the plans. That cost is expected to be recognized over a weighted average period of 0.72 years.

Restricted Stock Awards. A summary of the activity of the Company's non-vested stock awards during the six months ended June 30, 2013 is presented below

		Weighted
		Average
	Number of	Grant-Date
	Shares	Fair Value
Non-vested at December 31, 2012	153,723	$	7.73
Granted	200,000		9.51
Vested	(10,422)		7.88
Forfeited	(1,000)		7.95
Non-vested at June 30, 2013	342,301	$	8.77

The Company measures the fair value of restricted shares based on the price of BNC's common stock on the grant date and compensation expense isrecorded over the vesting period. The related compensation expense recognized for restricted stock awards for the six months ended June 30, 2013and 2012was $399,000 and $230,000, respectively. As of June 30, 2013, there was $2.3 million of total unrecognized compensation cost related to non-vested restricted stock granted under the plans. That cost is expected to be recognized over a weighted average period of 1.80 years. The grant-date fair value of restricted stock grants vested during the six months ended June 30, 2013 was $82,000.