News Release
Contact:
Angie Yang
SVP, Director of Investor Relations &
Corporate Communications
213-251-2219
angie.yang@BBCNbank.com
BBCN BANCORP REPORTS SOLID FINANCIAL RESULTS FOR 2016 SECOND QUARTER
Q2 2016 Summary:
| |
| ▪ | Net income totals $23.4 million, or $0.29 per diluted common share |
| |
| ▪ | New loan originations amount to $496.2 million |
| |
| ▪ | Loans receivable increase 5% year-to-date to $6.58 billion, or 13% year-over-year |
| |
| ▪ | Total deposits increase 5% year-to-date to $6.64 billion, or 15% year-over-year |
| |
| ▪ | Total assets increase 5% year-to-date to $8.34 billion, or 14% year-over-year |
LOS ANGELES - July 18, 2016 - BBCN Bancorp, Inc. (the “Company”) (NASDAQ: BBCN), the holding company of BBCN Bank (the “Bank”), today reported net income of $23.4 million, or $0.29 per diluted common share, for the three months ended June 30, 2016. This compares with net income of $23.6 million, or $0.30 per diluted common share, for the preceding 2016 first quarter and $22.9 million, or $0.29 per diluted common share, for the 2015 second quarter. These results include merger-related expenses of $1.5 million, $1.2 million and $26,000 for the 2016 second quarter, 2016 first quarter and 2015 second quarter, respectively.
“We delivered another solid performance for the 2016 second quarter and believe the consistency of our financial performance quarter after quarter is a testament to the overall soundness of BBCN’s platform,” said Kevin S. Kim, Chairman and Chief Executive Officer of BBCN Bancorp, Inc. “New loan originations were very strong, reaching a record second-quarter high of $496 million, boosted in part by a number of loans in our pipeline that carried over from the first to the second quarter. The mix of new loan production also continues to show favorable trends with robust volumes of commercial loans and a growing base of consumer loan originations, in line with the ramp up of our residential mortgage product. While we continue to see stability in the average yield on new loans, our core net interest margin declined 7 basis points linked quarter, reflecting the continued low interest rate environment. Notwithstanding a significant reduction in acquisition accounting adjustments, merger-related expenses and a higher tax rate, our net earnings remained solid at $23.4 million for the 2016 second quarter.
“Importantly, we made meaningful progress in the second quarter with our planned merger of equals with Wilshire Bancorp, having received all regulatory approvals to move ahead with the transaction. As previously announced, shareholder approvals have been received, and we are on track to complete the merger at the close of business on July 29, 2016. This is indeed a very exciting time for us, and on behalf of the Board of Directors and employees at BBCN, we thank all of our shareholders for the overwhelming support of this transaction. We look forward to keeping everyone apprised of the ongoing achievements of the organization under the new banner of Hope Bancorp, Inc. and Bank of Hope.”
Financial Highlights
|
| | | | | | | | | | | | |
| (dollars in thousands, except per share data) | At or for the Three Months Ended |
| | 6/30/2016 | | 3/31/2016 | | 6/30/2015 |
| Net income | $ | 23,390 |
| | $ | 23,623 |
| | $ | 22,941 |
|
| Diluted earnings per share | $ | 0.29 |
| | $ | $ | 0.30 |
| | $ | 0.29 |
|
| Net interest income before provision for loan losses | $ | 71,064 |
| | $ | 71,607 |
| | $ | 67,391 |
|
| Net interest margin | | 3.67 | % | | | 3.84 | % | | | 3.91 | % |
| Noninterest income | $ | 10,707 |
| | $ | 8,775 |
| | $ | 10,483 |
|
| Noninterest expense | $ | 40,348 |
| | $ | 40,049 |
| | $ | 38,613 |
|
| Net loans receivable | $ | 6,507,812 |
| | $ | 6,295,079 |
| | $ | 5,745,706 |
|
| Deposits | $ | 6,637,522 |
| | $ | 6,467,411 |
| | $ | 5,758,290 |
|
Nonaccrual loans (1) | $ | 42,398 |
| | $ | 43,548 |
| | $ | 39,681 |
|
| ALLL to loans receivable | | 1.16 | % | | | 1.21 | % | | | 1.21 | % |
ALLL to nonaccrual loans (1) | | 180.26 | % | | | 176.49 | % | | | 176.70 | % |
ALLL to nonperforming assets (1) (2) | | 69.62 | % | | | 66.17 | % | | | 59.63 | % |
| Provision for loan losses | $ | 1,200 |
| | $ | 500 |
| | $ | 1,000 |
|
| Net charge offs | $ | 1,631 |
| | $ | 52 |
| | $ | 476 |
|
| ROA | | 1.15 | % | | | 1.20 | % | | | 1.26 | % |
| ROE | | 9.67 | % | | | 9.99 | % | | | 10.13 | % |
| Efficiency ratio | | 49.34 | % | | | 49.82 | % | | | 49.58 | % |
(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $15.5 million, $15.4 million and $22.6 million at June 30, 2016, March 31, 2016, and June 30, 2015, respectively.
(2) Nonperforming assets exclude acquired credit impaired loans totaling $13.8 million, $13.1 million and $23.0 million at June 30, 2016, March 31, 2016, and June 30, 2015, respectively.
Operating Results for the 2016 Second Quarter
The comparability of BBCN’s operating results with past performance is impacted by acquisition accounting adjustments and merger-related expenses associated with past and current acquisitions . The Company provides the following supplemental information to facilitate a better understanding of financial performance. Net interest income and operating for the three months ended June 30, 2016, March 31, 2016, and June 30, 2015 include the following pre-tax acquisition accounting adjustments and merger-related expenses associated with past and current acquisitions:
|
| | | | | | | | | | | |
| (dollars in thousands) | Three Months Ended |
| | 6/30/2016 | | 3/31/2016 | | 6/30/2015 |
| Accretion of discount on acquired performing loans | $ | 898 |
| | $ | 1,966 |
| | $ | 2,515 |
|
| Accretion of discount on acquired credit impaired loans | | 1,436 |
| | | 1,965 |
| | | 1,818 |
|
| Amortization of premium on acquired FHLB borrowings | | 97 |
| | | 97 |
| | | 95 |
|
| Accretion of discount on acquired subordinated debt | | (44 | ) | | | (44 | ) | | | (42 | ) |
| Amortization of premium on acquired time deposits | | 24 |
| | | 24 |
| | | 49 |
|
| Total acquisition accounting adjustments | $ | 2,411 |
| | $ | 4,008 |
| | $ | 4,435 |
|
| Merger-related expenses | | (1,533 | ) | | | (1,207 | ) | | | (26 | ) |
| Total | $ | 878 |
| | $ | 2,801 |
| | $ | 4,409 |
|
Net Interest Income and Net Interest Margin. Net interest income before provision for loan losses for the 2016 second quarter totaled $71.1 million, down modestly from $71.6 million in the preceding 2016 first quarter. The Company attributed the reduction to a $1.6 million reduction in acquisition accounting adjustments from the
preceding first quarter, which more than offset the benefit of a 3% linked quarter increase in average loans receivable.
Compared with the 2015 second quarter, net interest income before provision for loan losses rose 5% over $67.4 million in the year-ago second quarter. The Company attributed the increase to the benefit of a 12% increase in average loans receivable and a 33% increase in average securities available for sale. These increases were partially offset by a $2.0 million decrease year-over-year in acquisition accounting adjustments.
The net interest margin (net interest income divided by average interest earning assets) and the impact of acquisition accounting adjustments are summarized in the following table:
|
| | | | | | | | | | | | | | |
| | Three Months Ended |
| | 6/30/2016 | | 3/31/2016 | | change | | 6/30/2015 | | change |
| Net interest margin, excluding the effect of acquisition accounting adjustments | 3.53 | % | | 3.60 | % | | (0.07 | ) | | 3.63 | % | | (0.10 | ) |
| Acquisition accounting adjustments | 0.14 |
| | 0.24 |
| | (0.10 | ) | | 0.28 |
| | (0.14 | ) |
| Net interest margin | 3.67 | % | | 3.84 | % | | (0.17 | ) | | 3.91 | % | | (0.24 | ) |
The net interest margin for the 2016 second quarter was 3.67%, down 17 basis points from the preceding first quarter and down 24 basis points from the year-ago second quarter. On a core basis, excluding the effect of acquisition accounting adjustments, the net interest margin for the 2016 second quarter declined by 7 basis points from the preceding first quarter and was down 10 basis points from the year-ago second quarter.
The weighted average yield on loans and the impact of acquisition accounting adjustments are summarized in the following table:
|
| | | | | | | | | | | | | | |
| | Three Months Ended |
| | 6/30/2016 | | 3/31/2016 | | change | | 6/30/2015 | | change |
| Weighted average yield on loans, excluding the effect of acquisition accounting adjustments | 4.63 | % | | 4.66 | % | | (0.03 | ) | | 4.64 | % | | (0.01 | ) |
| Acquisition accounting adjustments | 0.17 |
| | 0.29 |
| | (0.12 | ) | | 0.34 |
| | (0.17 | ) |
| Weighted average yield on loans | 4.80 | % | | 4.95 | % | | (0.15 | ) | | 4.98 | % | | (0.18 | ) |
The weighted average yield on loans for the 2016 second quarter declined 15 basis points from the preceding 2016 first quarter and declined 18 basis points from the year-ago second quarter. On a core basis, excluding the effect of acquisition accounting adjustments, the weighted average yield on loans declined by just 3 basis points from the preceding first quarter and just 1 basis point from the 2015 second quarter.
The weighted average yield on new loans originated during the 2016 second quarter was stable at 4.28%, down just 1 basis point from 4.29% in each of the 2016 first and 2015 second quarters.
The weighted average cost of deposits for the 2016 second quarter increased 1 basis point to 0.64% from the preceding first quarter and 9 basis points from the year-ago second quarter. The Company noted that there was no impact on the weighted average cost of deposits from the effect of premium amortization on time deposits assumed in acquisitions.
Noninterest Income. Noninterest income for the 2016 second quarter increased to $10.7 million from $8.8 million in the preceding 2016 first quarter and from $10.5 million in the year-ago second quarter. The variance in noninterest income was largely due to the gains on sales of SBA loans in each respective quarter. The Company posted gains on sales of SBA loans of $3.0 million, $1.8 million, and $3.1 million for the 2016 second quarter, 2016 first quarter, and 2015 second quarter, respectively.
Noninterest Expense. The Company continued to manage its operations efficiently notwithstanding the additional
merger related expenses associated with its pending combination with Wilshire Bancorp, Inc. Total noninterest expense for the 2016 second quarter, 2016 first quarter and 2015 second quarter totaled $40.3 million, $40.0 million and $38.6 million, respectively. Excluding merger related expenses of $1.5 million, $1.2 million and $26,000 for the 2016 second quarter, 2016 first quarter and 2015 second quarter, respectively, total noninterest expense was $38.8 million, $38.8 million and $38.6 million. Salaries and employee benefits expense totaled $21.8 million for the 2016 second quarter, $21.6 million for the 2016 first quarter and $20.9 million for the year-ago second quarter. The total number of FTEs as of June 30, 2016 was 918, compared with 945 as of March 31, 2016 and 927 as of June 30, 2015.
Income Tax Provision. The effective tax rate for the 2016 second quarter was 41.8%, compared with 40.7% for the preceding 2016 first quarter and 40.0% for the 2015 second quarter.
Balance Sheet Summary
Loans receivable totaled $6.58 billion at June 30, 2016, reflecting a 3% increase over $6.37 billion at March 31, 2016, and a 13% increase over $5.82 billion at June 30, 2015.
Total new loan originations during the 2016 second quarter amounted to $496.2 million, including SBA loan originations of $58.7 million. Sales of SBA loans to the secondary market and gains derived from those sales are based substantially on the production of SBA 7(a) loans. Production of SBA 7(a) loans totaled $56.7 million for the second quarter of 2016, compared with $37.6 million for the preceding 2016 first quarter and $58.3 million for the 2015 second quarter. During the 2016 second quarter, the Company sold $39.6 million of its SBA loans held for sale, compared with $23.8 million in the preceding first quarter and $34.2 million in the year-ago second quarter.
Aggregate pay offs and pay downs for the 2016 second quarter amounted to $235.6 million, compared with $201.9 million for the preceding 2016 first quarter and $216.5 million for the year-ago second quarter.
Total deposits increased to $6.64 billion at June 30, 2016, up 3% from $6.47 billion at March 31, 2016, largely reflecting increases in noninterest bearing deposits and money market accounts. Compared with June 30, 2015, deposits grew 15% over $5.76 billion at June 30, 2015 reflecting increases in all deposit categories except savings accounts.
Credit Quality
The provision for loan losses for the 2016 second quarter was $1.2 million, compared with $500,000 for the preceding 2016 first quarter and $1.0 million for the prior-year second quarter.
For a more detailed understanding of the changes in the Allowance for Loan and Lease Losses (“ALLL”), the composition of the ALLL has been segmented for disclosure purposes between loans accounted for under the amortized cost method (referred to as “Legacy Loans”) and loans acquired through the Center Financial, Pacific International and Foster transactions (referred to as “Acquired Loans”). The Acquired Loans are further segregated between performing and credit impaired loans.
The composition of the ALLL as of June 30, 2016, March 31, 2016, and June 30, 2015 is as follows:
|
| | | | | | | | | | | |
| (dollars in thousands) | 6/30/2016 | | 3/31/2016 | | 6/30/2015 |
Legacy Loans (1) | $ | 63,616 | | $ | 64,016 | | $ | 55,563 |
Acquired Loans - Performing (2) | | 860 | | | 963 | | | 1,908 |
Acquired Loans - Credit Impaired (2) | | 11,949 | | | 11,877 | | | 12,647 |
| Total ALLL | $ | 76,425 | | $ | 76,856 | | $ | 70,118 |
| | | | | | | | | |
| Loans Receivable | $ | 6,584,237 | | $ | 6,371,935 | | $ | 5,815,824 |
| ALLL coverage ratio | | 1.16 | % | | | 1.21 | % | | | 1.21 | % |
| |
(1) | Legacy Loans include loans originated by the Bank’s predecessor bank, loans originated by BBCN and loans that were acquired and that have been refinanced as new loans. |
| |
(2) | Acquired Loans were marked to fair value at acquisition date, and the allowance for loan losses reflect provisions for credit deterioration since the acquisition date. |
Following are the components of criticized loan balances as of June 30, 2016, March 31, 2016, and June 30, 2015:
|
| | | | | | | | |
| (dollars in thousands) | 6/30/2016 | | 3/31/2016 | | 6/30/2015 |
Special Mention (1) | $ | 100,370 | | $ | 104,042 | | $ | 129,795 |
Classified (1) | | 198,857 | | | 203,398 | | | 195,389 |
| Criticized | $ | 299,227 | | $ | 307,440 | | $ | 325,184 |
| |
(1) | Balances include Acquired Loans which were marked to fair value on the date of acquisition. |
The Company defines nonperforming loans to include delinquent loans past due 90 days or more on nonaccrual status, delinquent loans past due 90 days or more on accrual status (excluding acquired credit impaired loans) and accruing restructured loans. Nonaccrual loans at June 30, 2016 totaled $42.4 million, or 0.64% of loans receivable. This compares with nonaccrual loans of $43.5 million, or 0.68% of loans receivable, at March 31, 2016 and $39.7 million, or 0.68% of loans receivable, at June 30, 2015. Accruing restructured loans declined to $50.8 million at June 30, 2016, from $52.8 million at March 31, 2016 and $57.4 million at June 30, 2015. Total nonperforming loans at June 30, 2016 declined to $93.4 million, or 1.42% of loans receivable. This compares with total nonperforming loans of $96.4 million, or 1.51% of loans receivable, at March 31, 2016 and $97.4 million, or 1.67% of loans receivable, at June 30, 2015.
Nonperforming assets, including nonperforming loans and other real estate owned, declined to $109.8 million, or 1.32% of total assets, at June 30, 2016 from $116.1 million, or 1.44% of total assets, at March 31, 2016 and $117.6 million, or 1.60% of total assets, at June 30, 2015.
For the 2016 second quarter, the Company recorded net charge offs of $1.6 million, or 0.10% of average loans receivable on an annualized basis. This compares with net charge offs of $52,000, or 0.00% of average loans receivable on an annualized basis for the 2016 first quarter, and $476,000, or 0.03% of average loans receivable on an annualized basis, for the 2015 second quarter.
The allowance for loan losses at June 30, 2016 was $76.4 million, or 1.16% of loans receivable (excluding loans held for sale), compared with $76.9 million, or 1.21%, at March 31, 2016 and $70.1 million, or 1.21%, at June 30, 2015. The coverage ratio of the allowance for loan losses to nonperforming loans (excluding acquired credit impaired loans) was 81.84% at June 30, 2016 versus 79.77% at March 31, 2016 and 71.98% at June 30, 2015.
Impaired loans (defined as loans for which it is probable that not all principal and interest payments due will be collected in accordance with the contractual terms) totaled $136.6 million at June 30, 2016, compared with $140.4 million at March 31, 2016 and $118.7 million at June 30, 2015.
Capital
At June 30, 2016, the Company continued to exceed all regulatory capital requirements to be classified as a “well-capitalized” institution, as summarized in the following table.
|
| | | | | | | |
| | 6/30/2016 | | 3/31/2016 | | 6/30/2015 | | Minimum Guideline for “Well-Capitalized” Institution |
| Common Equity Tier 1 Capital | 11.66% | | 11.96% | | 12.58% | | |
| Leverage Ratio | 11.14% | | 11.44% | | 11.80% | | 5.00% |
| Tier 1 Risk-based Ratio | 12.22% | | 12.54% | | 13.22% | | 5.00% |
| Total Risk-based Ratio | 13.28% | | 13.64% | | 14.34% | | 10.00% |
Tangible common equity per share and as a percentage of tangible assets are summarized in the following table:
|
| | | | | |
| | 6/30/2016 | | 3/31/2016 | | 6/30/2015 |
Tangible common equity per share (1) | $10.85 | | $10.73 | | $10.05 |
Tangible common equity to tangible assets (1) | 10.50% | | 10.73% | | 11.07% |
| |
(1) | Tangible common equity to tangible assets is a non-GAAP financial measure that represents common equity less goodwill and net other intangible assets divided by total assets less goodwill and net other intangible assets. Management reviews tangible common equity to tangible assets in evaluating the Company’s capital levels and has included this ratio in response to market participant interest in tangible common equity as a measure of capital. The accompanying financial information includes a reconciliation of the ratio of tangible common equity to tangible assets with stockholders’ equity and total assets. |
Investor Conference Call
The Company will host an investor conference call on Tuesday, July 19, 2016 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for the 2016 second quarter. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international), and asking for the “BBCN Bancorp Call.” Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of BBCN Bancorp’s website at www.BBCNbank.com. After the live webcast, a replay will remain available in the Investor Relations section of BBCN Bancorp’s website for one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) through July 26, 2016, passcode 10088805.
About BBCN Bancorp, Inc.
BBCN Bancorp, Inc. is the holding company of BBCN Bank, the largest Korean-American bank in the nation with $8.3 billion in assets as of June 30, 2016. Headquartered in Los Angeles and serving a diverse mix of customers mirroring its communities, BBCN operates 50 branches in California, New York, New Jersey, Illinois, Washington and Virginia; eight loan production offices in Seattle, Denver, Dallas, Atlanta, Northern California, Annandale, Virginia, Portland, Oregon and Fremont, California; and a representative office in Seoul, Korea. BBCN specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and business lending, SBA lending and international trade financing. BBCN Bank is a California-chartered bank and its deposits are insured by the FDIC to the extent provided by law. BBCN is an Equal Opportunity Lender.
Forward-Looking Statements
This press release may contain forward-looking statements, including statements about the proposed merger transaction between BBCN Bancorp and Wilshire Bancorp and the expected timetable for completing the transaction, future operations and projected financial results. These statements are based on current expectations, estimates, forecasts and projections and management assumptions about the future performance of the combined company, as well as the businesses and markets in which the combined company operates and is expected to operate. These statements constitute forward-looking statements
within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, involve certain risks, uncertainties and assumptions that are difficult to assess and are not guarantees of future performance and. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Readers should carefully review the risk factors and the information that could materially affect the Company’s financial results and business, described in documents the Company files from time to time with the Securities and Exchange Commission, including its quarterly reports on Form 10-Q and Annual Reports on Form 10-K, and particularly the discussions of business considerations and certain factors that may affect results of operations and stock price set forth therein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements.
# # #
(tables follow)
BBCN Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| Assets | 6/30/2016 | | 3/31/2016 | | % change | | 12/31/2015 | | % change | | 6/30/2015 | | % change |
| Cash and due from banks | $ | 286,173 |
| | $ | 236,101 |
| | 21 | % | | $ | 298,389 |
| | (4 | )% | | $ | 299,882 |
| | (5 | )% |
| Securities available for sale, at fair value | 1,099,944 |
| | 1,087,897 |
| | 1 | % | | 1,010,556 |
| | 9 | % | | 871,405 |
| | 26 | % |
| Federal Home Loan Bank, Federal Reserve Bank stock and other investments | 63,429 |
| | 68,329 |
| | (7 | )% | | 66,859 |
| | (5 | )% | | 44,558 |
| | 42 | % |
| Loans held for sale, at the lower of cost or fair value | 14,323 |
| | 13,843 |
| | 3 | % | | 8,273 |
| | 73 | % | | 33,785 |
| | (58 | )% |
| Loans receivable | 6,584,237 |
| | 6,371,935 |
| | 3 | % | | 6,248,341 |
| | 5 | % | | 5,815,824 |
| | 13 | % |
| Allowance for loan losses | (76,425 | ) | | (76,856 | ) | | 1 | % | | (76,408 | ) | | — | % | | (70,118 | ) | | (9 | )% |
| Net loans receivable | 6,507,812 |
| | 6,295,079 |
| | 3 | % | | 6,171,933 |
| | 5 | % | | 5,745,706 |
| | 13 | % |
| Accrued interest receivable | 15,787 |
| | 15,660 |
| | 1 | % | | 15,195 |
| | 4 | % | | 13,781 |
| | 15 | % |
| Premises and equipment, net | 37,663 |
| | 35,134 |
| | 7 | % | | 34,575 |
| | 9 | % | | 35,321 |
| | 7 | % |
| Bank owned life insurance | 47,562 |
| | 47,292 |
| | 1 | % | | 47,018 |
| | 1 | % | | 46,466 |
| | 2 | % |
| Goodwill | 105,401 |
| | 105,401 |
| | — | % | | 105,401 |
| | — | % | | 105,401 |
| | — | % |
| Servicing assets | 12,193 |
| | 11,856 |
| | 3 | % | | 12,000 |
| | 2 | % | | 10,935 |
| | 12 | % |
| Other intangible assets, net | 2,395 |
| | 2,607 |
| | (8 | )% | | 2,820 |
| | (15 | )% | | 3,354 |
| | (29 | )% |
| Other assets | 144,490 |
| | 144,553 |
| | — | % | | 139,629 |
| | 3 | % | | 122,725 |
| | 18 | % |
| Total assets | $ | 8,337,172 |
| | $ | 8,063,752 |
| | 3 | % | | $ | 7,912,648 |
| | 5 | % | | $ | 7,333,319 |
| | 14 | % |
| | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | |
| Deposits | $ | 6,637,522 |
| | $ | 6,467,411 |
| | 3 | % | | $ | 6,340,976 |
| | 5 | % | | $ | 5,758,290 |
| | 15 | % |
| Borrowings from Federal Home Loan Bank | 610,398 |
| | 530,495 |
| | 15 | % | | 530,591 |
| | 15 | % | | 580,785 |
| | 5 | % |
| Subordinated debentures | 42,415 |
| | 42,371 |
| | — | % | | 42,327 |
| | — | % | | 42,241 |
| | — | % |
| Accrued interest payable | 7,164 |
| | 6,746 |
| | 6 | % | | 6,007 |
| | 19 | % | | 5,954 |
| | 20 | % |
| Other liabilities | 67,933 |
| | 54,747 |
| | 24 | % | | 54,652 |
| | 24 | % | | 37,461 |
| | 81 | % |
| Total liabilities | 7,365,432 |
| | 7,101,770 |
| | 4 | % | | 6,974,553 |
| | 6 | % | | 6,424,731 |
| | 15 | % |
| | | | | | | | | | | | | | |
| Stockholders’ Equity | | | | | | | | | | | | | |
| Common stock, $0.001 par value; authorized, 150,000,000 shares at June 30, 2016, March 31, 2016, December 31, 2015, and June 30, 2015; issued and outstanding, 79,606,821, 79,597,106, 79,566,356, and 79,542,321 shares at June 30, 2016, March 31, 2016, December 31, 2015, and June 30, 2015, respectively | 80 |
| | 80 |
| | — | % | | 80 |
| | — | % | | 80 |
| | — | % |
| Capital surplus | 541,688 |
| | 541,625 |
| | — | % | | 541,596 |
| | — | % | | 541,091 |
| | — | % |
| Retained earnings | 418,998 |
| | 413,122 |
| | 1 | % | | 398,251 |
| | 5 | % | | 367,792 |
| | 14 | % |
| Accumulated other comprehensive income (loss), net | 10,974 |
| | 7,155 |
| | 53 | % | | (1,832 | ) | | 699 | % | | (375 | ) | | 3,026 | % |
| Total stockholders’ equity | 971,740 |
| | 961,982 |
| | 1 | % | | 938,095 |
| | 4 | % | | 908,588 |
| | 7 | % |
| Total liabilities and stockholders’ equity | $ | 8,337,172 |
| | $ | 8,063,752 |
| | 3 | % | | $ | 7,912,648 |
| | 5 | % | | $ | 7,333,319 |
| | 14 | % |
| | | | | | | | | | | | | | |
BBCN Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended |
| | 6/30/2016 | | 3/31/2016 | | % change | | 6/30/2015 | | % change | | 6/30/2016 | | 6/30/2015 | | % change |
| Interest income: | | | | | | | | | | | | | | | |
| Interest and fees on loans | $ | 77,086 |
| | $ | 77,118 |
| | — | % | | $ | 71,249 |
| | 8 | % | | $ | 154,204 |
| | $ | 140,888 |
| | 9 | % |
| Interest on securities | 5,729 |
| | 5,677 |
| | 1 | % | | 4,203 |
| | 36 | % | | 11,406 |
| | 8,409 |
| | 36 | % |
| Interest on federal funds sold and other investments | 719 |
| | 666 |
| | 8 | % | | 1,623 |
| | (56 | )% | | 1,385 |
| | 2,332 |
| | (41 | )% |
| Total interest income | 83,534 |
| | 83,461 |
| | — | % | | 77,075 |
| | 8 | % | | 166,995 |
| | 151,629 |
| | 10 | % |
| | | | | | | | | | | | | | | | |
| Interest expense: | | | | | | | | | | | | | | | |
| Interest on deposits | 10,352 |
| | 9,907 |
| | 4 | % | | 7,970 |
| | 30 | % | | 20,259 |
| | 15,724 |
| | 29 | % |
| Interest on other borrowings | 2,118 |
| | 1,947 |
| | 9 | % | | 1,714 |
| | 24 | % | | 4,065 |
| | 3,391 |
| | 20 | % |
| Total interest expense | 12,470 |
| | 11,854 |
| | 5 | % | | 9,684 |
| | 29 | % | | 24,324 |
| | 19,115 |
| | 27 | % |
| | | | | | | | | | | | | | | | |
| Net interest income before provision for loan losses | 71,064 |
| | 71,607 |
| | (1 | )% | | 67,391 |
| | 5 | % | | 142,671 |
| | 132,514 |
| | 8 | % |
| Provision for loan losses | 1,200 |
| | 500 |
| | 140 | % | | 1,000 |
| | 20 | % | | 1,700 |
| | 2,500 |
| | (32 | )% |
| Net interest income after provision for loan losses | 69,864 |
| | 71,107 |
| | (2 | )% | | 66,391 |
| | 5 | % | | 140,971 |
| | 130,014 |
| | 8 | % |
| | | | | | | | | | | | | | | | |
| Noninterest income: | | | | | | | | | | | | | | | |
| Service fees on deposit accounts | 2,902 |
| | 2,683 |
| | 8 | % | | 3,030 |
| | (4 | )% | | 5,585 |
| | 6,092 |
| | (8 | )% |
| Net gains on sales of SBA loans | 3,035 |
| | 1,825 |
| | 66 | % | | 3,119 |
| | (3 | )% | | 4,860 |
| | 6,163 |
| | (21 | )% |
| Net gains on sales of other loans | 43 |
| | — |
| | 100 | % | | 45 |
| | (4 | )% | | 43 |
| | 227 |
| | (81 | )% |
| Net gains on sales of securities available for sale | — |
| | — |
| | — | % | | — |
| | — | % | | — |
| | 424 |
| | (100 | )% |
| Other income and fees | 4,727 |
| | 4,267 |
| | 11 | % | | 4,289 |
| | 10 | % | | 8,994 |
| | 8,625 |
| | 4 | % |
| Total noninterest income | 10,707 |
| | 8,775 |
| | 22 | % | | 10,483 |
| | 2 | % | | 19,482 |
| | 21,531 |
| | (10 | )% |
| | | | | | | | | | | | | | | | |
| Noninterest expense: | | | | | | | | | | | | | | | |
| Salaries and employee benefits | 21,757 |
| | 21,569 |
| | 1 | % | | 20,932 |
| | 4 | % | | 43,326 |
| | 42,113 |
| | 3 | % |
| Occupancy | 4,920 |
| | 4,817 |
| | 2 | % | | 4,810 |
| | 2 | % | | 9,737 |
| | 9,502 |
| | 2 | % |
| Furniture and equipment | 2,337 |
| | 2,287 |
| | 2 | % | | 2,323 |
| | 1 | % | | 4,624 |
| | 4,586 |
| | 1 | % |
| Advertising and marketing | 1,402 |
| | 1,136 |
| | 23 | % | | 1,484 |
| | (6 | )% | | 2,538 |
| | 2,875 |
| | (12 | )% |
| Data processing and communications | 2,129 |
| | 2,171 |
| | (2 | )% | | 2,463 |
| | (14 | )% | | 4,300 |
| | 4,812 |
| | (11 | )% |
| Professional fees | 1,273 |
| | 1,083 |
| | 18 | % | | 1,253 |
| | 2 | % | | 2,356 |
| | 2,677 |
| | (12 | )% |
| FDIC assessment | 1,095 |
| | 1,038 |
| | 5 | % | | 909 |
| | 20 | % | | 2,133 |
| | 2,021 |
| | 6 | % |
| Credit related expenses | 911 |
| | 421 |
| | 116 | % | | 669 |
| | 36 | % | | 1,332 |
| | 1,525 |
| | (13 | )% |
| OREO expense | 133 |
| | 1,428 |
| | (91 | )% | | 1,221 |
| | (89 | )% | | 1,561 |
| | 2,398 |
| | (35 | )% |
| Merger related expenses | 1,533 |
| | 1,207 |
| | 27 | % | | 26 |
| | 5,796 | % | | 2,740 |
| | 78 |
| | 3,413 | % |
| Other | 2,858 |
| | 2,892 |
| | (1 | )% | | 2,523 |
| | 13 | % | | 5,750 |
| | 5,103 |
| | 13 | % |
| Total noninterest expense | 40,348 |
| | 40,049 |
| | 1 | % | | 38,613 |
| | 4 | % | | 80,397 |
| | 77,690 |
| | 3 | % |
| Income before income taxes | 40,223 |
| | 39,833 |
| | 1 | % | | 38,261 |
| | 5 | % | | 80,056 |
| | 73,855 |
| | 8 | % |
| Income tax provision | 16,833 |
| | 16,210 |
| | 4 | % | | 15,320 |
| | 10 | % | | 33,043 |
| | 29,556 |
| | 12 | % |
| Net income | $ | 23,390 |
| | $ | 23,623 |
| | (1 | )% | | $ | 22,941 |
| | 2 | % | | $ | 47,013 |
| | $ | 44,299 |
| | 6 | % |
| | | | | | | | | | | | | | | | |
| Earnings Per Common Share: | | | | | | | | | | | | | | | |
| Basic | $ | 0.29 |
| | $ | 0.30 |
| | | | $ | 0.29 |
| | | | $ | 0.59 |
| | $ | 0.56 |
| | |
| Diluted | $ | 0.29 |
| | $ | 0.30 |
| | | | $ | 0.29 |
| | | | $ | 0.59 |
| | $ | 0.56 |
| | |
| | | | | | | | | | | | | | | | |
| Average Shares Outstanding: | | | | | | | | | | | | | | | |
| Basic | 79,604,673 |
| | 79,583,188 |
| | | | 79,549,097 |
| | | | 79,595,599 |
| | 79,539,789 |
| | |
| Diluted | 79,634,762 |
| | 79,613,245 |
| | | | 79,569,875 |
| | | | 79,625,673 |
| | 79,563,944 |
| | |
BBCN Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
|
| | | | | | | | | | | | | | |
| | At or for the Three Months Ended (Annualized) | | At or for the Six Months Ended (Annualized) |
| Profitability measures: | 6/30/2016 | | 3/31/2016 | | 6/30/2015 | | 6/30/2016 | | 6/30/2015 |
| ROA | 1.15 | % | | 1.20 | % | | 1.26 | % | | 1.17 | % | | 1.23 | % |
| ROE | 9.67 | % | | 9.99 | % | | 10.13 | % | | 9.83 | % | | 9.86 | % |
Return on average tangible equity 1 | 10.88 | % | | 11.28 | % | | 11.51 | % | | 11.08 | % | | 11.23 | % |
| Net interest margin | 3.67 | % | | 3.84 | % | | 3.91 | % | | 3.75 | % | | 3.89 | % |
| Efficiency ratio | 49.34 | % | | 49.82 | % | | 49.58 | % | | 49.58 | % | | 50.43 | % |
| | | | | | | | | | |
1 Average tangible equity is calculated by subtracting average goodwill and average core deposit intangible assets from average stockholders’ equity. This is a non-GAAP measure that we believe provides investors with information that is useful in understanding our financial performance and position. |
| |
BBCN Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Three Months Ended | | Three Months Ended |
| | 6/30/2016 | | 3/31/2016 | | 6/30/2015 |
| | | | Interest | | Annualized | | | | Interest | | Annualized | | | | Interest | | Annualized |
| | Average | | Income/ | | Average | | Average | | Income/ | | Average | | Average | | Income/ | | Average |
| | Balance | | Expense | | Yield/Cost | | Balance | | Expense | | Yield/Cost | | Balance | | Expense | | Yield/Cost |
| INTEREST EARNING ASSETS: | | | | | | | | | | | | | | | | | |
| Loans receivable, including loans held for sale | $ | 6,457,883 |
| | $ | 77,086 |
| | 4.80 | % | | $ | 6,269,428 |
| | $ | 77,118 |
| | 4.95 | % | | $ | 5,742,153 |
| | $ | 71,249 |
| | 4.98 | % |
| Securities available for sale | 1,089,080 |
| | 5,729 |
| | 2.10 | % | | 1,016,865 |
| | 5,677 |
| | 2.23 | % | | 815,820 |
| | 4,203 |
| | 2.06 | % |
| FRB and FHLB stock and other investments | 237,872 |
| | 719 |
| | 1.20 | % | | 217,048 |
| | 666 |
| | 1.21 | % | | 352,690 |
| | 1,623 |
| | 1.82 | % |
| Total interest earning assets | $ | 7,784,835 |
| | $ | 83,534 |
| | 4.31 | % | | $ | 7,503,341 |
| | $ | 83,461 |
| | 4.47 | % | | $ | 6,910,663 |
| | $ | 77,075 |
| | 4.47 | % |
| | | | | | | | | | | | | | | | | | |
| INTEREST BEARING LIABILITIES: | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | |
| Demand, interest bearing | $ | 2,030,272 |
| | $ | 4,147 |
| | 0.82 | % | | $ | 1,968,637 |
| | $ | 4,004 |
| | 0.82 | % | | $ | 1,608,495 |
| | $ | 2,873 |
| | 0.72 | % |
| Savings | 178,249 |
| | 285 |
| | 0.64 | % | | 186,462 |
| | 366 |
| | 0.79 | % | | 194,053 |
| | 416 |
| | 0.86 | % |
| Time deposits: | | | | | | | | | | | | | | | | | |
| $100,000 or more | 1,890,891 |
| | 4,240 |
| | 0.90 | % | | 1,806,609 |
| | 4,057 |
| | 0.90 | % | | 1,750,089 |
| | 3,514 |
| | 0.81 | % |
| Other | 745,761 |
| | 1,680 |
| | 0.91 | % | | 699,431 |
| | 1,480 |
| | 0.85 | % | | 609,654 |
| | 1,167 |
| | 0.77 | % |
| Total time deposits | 2,636,652 |
| | 5,920 |
| | 0.90 | % | | 2,506,040 |
| | 5,537 |
| | 0.89 | % | | 2,359,743 |
| | 4,681 |
| | 0.80 | % |
| Total interest bearing deposits | 4,845,173 |
| | 10,352 |
| | 0.86 | % | | 4,661,139 |
| | 9,907 |
| | 0.85 | % | | 4,162,291 |
| | 7,970 |
| | 0.77 | % |
| FHLB advances | 564,637 |
| | 1,686 |
| | 1.20 | % | | 532,206 |
| | 1,523 |
| | 1.15 | % | | 481,946 |
| | 1,327 |
| | 1.10 | % |
| Other borrowings | 40,861 |
| | 431 |
| | 4.18 | % | | 40,813 |
| | 424 |
| | 4.11 | % | | 40,670 |
| | 387 |
| | 3.76 | % |
| Total interest bearing liabilities | 5,450,671 |
| | $ | 12,470 |
| | 0.92 | % | | 5,234,158 |
| | $ | 11,854 |
| | 0.91 | % | | 4,684,907 |
| | $ | 9,684 |
| | 0.83 | % |
| Noninterest bearing demand deposits | 1,671,986 |
| | | | | | 1,629,565 |
| | | | | | 1,623,922 |
| | | | |
| Total funding liabilities/cost of funds | $ | 7,122,657 |
| | | | 0.70 | % | | $ | 6,863,723 |
| | | | 0.69 | % | | $ | 6,308,829 |
| | | | 0.62 | % |
| Net interest income/net interest spread | | | $ | 71,064 |
| | 3.39 | % | | | | $ | 71,607 |
| | 3.56 | % | | | | $ | 67,391 |
| | 3.64 | % |
| Net interest margin | | | | | 3.67 | % | | | | | | 3.84 | % | | | | | | 3.91 | % |
| Net interest margin, excluding effect of nonaccrual loan income (expense) | | | | | 3.67 | % | | | | | | 3.84 | % | | | | | | 3.91 | % |
| Net interest margin, excluding effect of nonaccrual loan income (expense) and prepayment fee income | | | | | 3.64 | % | | | | | | 3.81 | % | | | | | | 3.88 | % |
| Nonaccrual loan income reversed | | | $ | (21 | ) | | | | | | $ | (123 | ) | | | | | | $ | (21 | ) | | |
| Prepayment fee income received | | | 528 |
| | | | | | 631 |
| | | | | | 457 |
| | |
| Net | | | $ | 507 |
| | | | | | $ | 508 |
| | | | | | $ | 436 |
| | |
| | | | | | | | | | | | | | | | | | |
| Cost of deposits: | | | | | | | | | | | | | | | | | |
| Noninterest bearing demand deposits | $ | 1,671,986 |
| | $ | — |
| | | | $ | 1,629,565 |
| | $ | — |
| | | | $ | 1,623,922 |
| | $ | — |
| | |
| Interest bearing deposits | 4,845,173 |
| | 10,352 |
| | 0.86 | % | | 4,661,139 |
| | 9,907 |
| | 0.85 | % | | 4,162,291 |
| | 7,970 |
| | 0.77 | % |
| Total deposits | $ | 6,517,159 |
| | $ | 10,352 |
| | 0.64 | % | | $ | 6,290,704 |
| | $ | 9,907 |
| | 0.63 | % | | $ | 5,786,213 |
| | $ | 7,970 |
| | 0.55 | % |
BBCN Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | Six Months Ended | | Six Months Ended |
| | 6/30/2016 | | 6/30/2015 |
| | | | Interest | | Annualized | | | | Interest | | Annualized |
| | Average | | Income/ | | Average | | Average | | Income/ | | Average |
| | Balance | | Expense | | Yield/Cost | | Balance | | Expense | | Yield/Cost |
| INTEREST EARNING ASSETS: | | | | | | | | | | | |
| Loans receivable, including loans held for sale | $ | 6,363,656 |
| | $ | 154,204 |
| | 4.87 | % | | $ | 5,680,364 |
| | $ | 140,888 |
| | 5.00 | % |
| Securities available for sale | 1,052,972 |
| | 11,406 |
| | 2.17 | % | | 797,166 |
| | 8,409 |
| | 2.11 | % |
| FRB and FHLB stock and other investments | 227,460 |
| | 1,385 |
| | 1.20 | % | | 383,659 |
| | 2,332 |
| | 1.21 | % |
| Total interest earning assets | $ | 7,644,088 |
| | $ | 166,995 |
| | 4.39 | % | | $ | 6,861,189 |
| | $ | 151,629 |
| | 4.45 | % |
| | | | | | | | | | | | |
| INTEREST BEARING LIABILITIES: | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | |
| Demand, interest bearing | $ | 1,999,454 |
| | $ | 8,151 |
| | 0.82 | % | | $ | 1,617,021 |
| | $ | 5,638 |
| | 0.70 | % |
| Savings | 182,356 |
| | 651 |
| | 0.72 | % | | 194,555 |
| | 841 |
| | 0.87 | % |
| Time deposits: | | | | | | | | | | | |
| $100,000 or more | 1,848,750 |
| | 8,297 |
| | 0.90 | % | | 1,731,812 |
| | 6,891 |
| | 0.80 | % |
| Other | 722,596 |
| | 3,160 |
| | 0.88 | % | | 617,879 |
| | 2,354 |
| | 0.77 | % |
| Total time deposits | 2,571,346 |
| | 11,457 |
| | 0.90 | % | | 2,349,691 |
| | 9,245 |
| | 0.79 | % |
| Total interest bearing deposits | 4,753,156 |
| | 20,259 |
| | 0.86 | % | | 4,161,267 |
| | 15,724 |
| | 0.76 | % |
| FHLB advances | 548,421 |
| | 3,209 |
| | 1.18 | % | | 481,447 |
| | 2,624 |
| | 1.10 | % |
| Other borrowings | 40,837 |
| | 856 |
| | 4.14 | % | | 40,647 |
| | 767 |
| | 3.75 | % |
| Total interest bearing liabilities | 5,342,414 |
| | $ | 24,324 |
| | 0.92 | % | | 4,683,361 |
| | $ | 19,115 |
| | 0.82 | % |
| Noninterest bearing demand deposits | 1,650,775 |
| | | | | | 1,583,756 |
| | | | |
| Total funding liabilities/cost of funds | $ | 6,993,189 |
| | | | 0.70 | % | | $ | 6,267,117 |
| | | | 0.61 | % |
| Net interest income/net interest spread | | | $ | 142,671 |
| | 3.47 | % | | | | $ | 132,514 |
| | 3.63 | % |
| Net interest margin | | | | | 3.75 | % | | | | | | 3.89 | % |
| Net interest margin, excluding effect of nonaccrual loan income (expense) | | | | | 3.76 | % | | | | | | 3.89 | % |
| Net interest margin, excluding effect of nonaccrual loan income (expense) and prepayment fee income | | | | | 3.72 | % | | | | | | 3.86 | % |
| Nonaccrual loan income reversed | | | $ | (144 | ) | | | | | | $ | (45 | ) | | |
| Prepayment fee income received | | | 1,159 |
| | | | | | 967 |
| | |
| Net | | | $ | 1,015 |
| | | | | | $ | 922 |
| | |
| | | | | | | | | | | | |
| Cost of deposits: | | | | | | | | | | | |
| Noninterest bearing demand deposits | $ | 1,650,775 |
| | $ | — |
| | | | $ | 1,583,756 |
| | $ | — |
| | |
| Interest bearing deposits | 4,753,156 |
| | 20,259 |
| | 0.86 | % | | 4,161,267 |
| | 15,724 |
| | 0.76 | % |
| Total deposits | $ | 6,403,931 |
| | $ | 20,259 |
| | 0.64 | % | | $ | 5,745,023 |
| | $ | 15,724 |
| | 0.55 | % |
BBCN Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended |
| AVERAGE BALANCES | 6/30/2016 | | 3/31/2016 | | % change | | 6/30/2015 | | % change | | 6/30/2016 | | 6/30/2015 | | % change |
| Loans receivable, including loans held for sale | $ | 6,457,883 |
| | $ | 6,269,428 |
| | 3 | % | | $ | 5,742,153 |
| | 12 | % | | $ | 6,363,656 |
| | $ | 5,680,364 |
| | 12 | % |
| Investments | 1,326,952 |
| | 1,233,913 |
| | 8 | % | | 1,168,510 |
| | 14 | % | | 1,280,432 |
| | 1,180,825 |
| | 8 | % |
| Interest earning assets | 7,784,835 |
| | 7,503,341 |
| | 4 | % | | 6,910,663 |
| | 13 | % | | 7,644,088 |
| | 6,861,189 |
| | 11 | % |
| Total assets | 8,157,362 |
| | 7,875,940 |
| | 4 | % | | 7,264,687 |
| | 12 | % | | 8,016,651 |
| | 7,213,533 |
| | 11 | % |
| | | | | | | | | | | | | | | | |
| Interest bearing deposits | 4,845,173 |
| | 4,661,139 |
| | 4 | % | | 4,162,291 |
| | 16 | % | | 4,753,156 |
| | 4,161,267 |
| | 14 | % |
| Interest bearing liabilities | 5,450,671 |
| | 5,234,158 |
| | 4 | % | | 4,684,907 |
| | 16 | % | | 5,342,414 |
| | 4,683,361 |
| | 14 | % |
| Noninterest bearing demand deposits | 1,671,986 |
| | 1,629,565 |
| | 3 | % | | 1,623,922 |
| | 3 | % | | 1,650,775 |
| | 1,583,756 |
| | 4 | % |
| Stockholders’ equity | 967,919 |
| | 945,634 |
| | 2 | % | | 906,310 |
| | 7 | % | | 956,777 |
| | 898,302 |
| | 7 | % |
| Net interest earning assets | 2,334,164 |
| | 2,269,183 |
| | 3 | % | | 2,225,756 |
| | 5 | % | | 2,301,674 |
| | 2,177,828 |
| | 6 | % |
| | | | | | | | | | | | | | | | |
| LOAN PORTFOLIO COMPOSITION: | 6/30/2016 | | 3/31/2016 | | % change | | 12/31/2015 | | % change | | 6/30/2015 | | % change | | |
| Commercial loans | $ | 1,111,219 |
| | $ | 1,118,420 |
| | (1 | )% | | $ | 1,079,316 |
| | 3 | % | | $ | 1,085,714 |
| | 2 | % | | |
| Real estate loans | 5,331,015 |
| | 5,132,517 |
| | 4 | % | | 5,069,482 |
| | 5 | % | | 4,645,401 |
| | 15 | % | | |
| Consumer and other loans | 145,182 |
| | 124,064 |
| | 17 | % | | 102,573 |
| | 42 | % | | 87,707 |
| | 66 | % | | |
| Loans outstanding | 6,587,416 |
| | 6,375,001 |
| | 3 | % | | 6,251,371 |
| | 5 | % | | 5,818,822 |
| | 13 | % | | |
| Unamortized deferred loan fees - net of costs | (3,179 | ) | | (3,066 | ) | | (4 | )% | | (3,030 | ) | | (5 | )% | | (2,998 | ) | | (6 | )% | | |
| Loans, net of deferred loan fees and costs | 6,584,237 |
| | 6,371,935 |
| | 3 | % | | 6,248,341 |
| | 5 | % | | 5,815,824 |
| | 13 | % | | |
| Allowance for loan losses | (76,425 | ) | | (76,856 | ) | | 1 | % | | (76,408 | ) | | — | % | | (70,118 | ) | | (9 | )% | | |
| Loan receivable, net | $ | 6,507,812 |
| | $ | 6,295,079 |
| | 3 | % | | $ | 6,171,933 |
| | 5 | % | | $ | 5,745,706 |
| | 13 | % | | |
| | | | | | | | | | | | | | | | |
| REAL ESTATE LOANS BY PROPERTY TYPE: | 6/30/2016 | | 3/31/2016 | | % change | | 12/31/2015 | | % change | | 6/30/2015 | | % change | | |
| Retail buildings | $ | 1,365,808 |
| | $ | 1,339,676 |
| | 2 | % | | $ | 1,326,516 |
| | 3 | % | | $ | 1,183,866 |
| | 15 | % | | |
| Hotels/motels | 1,155,928 |
| | 1,079,649 |
| | 7 | % | | 1,061,111 |
| | 9 | % | | 969,980 |
| | 19 | % | | |
| Gas stations/car washes | 704,334 |
| | 689,883 |
| | 2 | % | | 667,496 |
| | 6 | % | | 630,445 |
| | 12 | % | | |
| Mixed-use facilities | 400,559 |
| | 381,955 |
| | 5 | % | | 369,425 |
| | 8 | % | | 349,600 |
| | 15 | % | | |
| Warehouses | 543,270 |
| | 530,353 |
| | 2 | % | | 529,255 |
| | 3 | % | | 499,313 |
| | 9 | % | | |
| Multifamily | 260,708 |
| | 251,780 |
| | 4 | % | | 245,532 |
| | 6 | % | | 213,256 |
| | 22 | % | | |
| Other | 900,408 |
| | 859,221 |
| | 5 | % | | 870,147 |
| | 3 | % | | 798,941 |
| | 13 | % | | |
| Total | $ | 5,331,015 |
| | $ | 5,132,517 |
| | 4 | % | | $ | 5,069,482 |
| | 5 | % | | $ | 4,645,401 |
| | 15 | % | | |
| | | | | | | | | | | | | | | | |
| DEPOSIT COMPOSITION | 6/30/2016 | | 3/31/2016 | | % change | | 12/31/2015 | | % change | | 6/30/2015 | | % change | | |
| Noninterest bearing demand deposits | $ | 1,717,045 |
| | $ | 1,695,039 |
| | 1 | % | | $ | 1,694,427 |
| | 1 | % | | $ | 1,689,137 |
| | 2 | % | | |
| Money market and other | 2,176,978 |
| | 1,951,561 |
| | 12 | % | | 1,983,250 |
| | 10 | % | | 1,615,974 |
| | 35 | % | | |
| Saving deposits | 173,549 |
| | 181,779 |
| | (5 | )% | | 187,498 |
| | (7 | )% | | 196,998 |
| | (12 | )% | | |
| Time deposits of $100,000 or more | 1,828,649 |
| | 1,885,842 |
| | (3 | )% | | 1,772,984 |
| | 3 | % | | 1,637,673 |
| | 12 | % | | |
| Other time deposits | 741,301 |
| | 753,189 |
| | (2 | )% | | 702,817 |
| | 5 | % | | 618,508 |
| | 20 | % | | |
| Total deposit balances | $ | 6,637,522 |
| | $ | 6,467,410 |
| | 3 | % | | $ | 6,340,976 |
| | 5 | % | | $ | 5,758,290 |
| | 15 | % | | |
| | | | | | | | | | | | | | | | |
| DEPOSIT COMPOSITION (%) | 6/30/2016 | | 3/31/2016 | | | | 12/31/2015 | | | | 6/30/2015 | | | | |
| Noninterest bearing demand deposits | 25.9 | % | | 26.2 | % | | | | 26.7 | % | | | | 29.3 | % | | | | |
| Money market and other | 32.8 | % | | 30.2 | % | | | | 31.3 | % | | | | 28.1 | % | | | | |
| Saving deposits | 2.6 | % | | 2.8 | % | | | | 3.0 | % | | | | 3.4 | % | | | | |
| Time deposits of $100,000 or more | 27.6 | % | | 29.2 | % | | | | 28.0 | % | | | | 28.4 | % | | | | |
| Other time deposits | 11.1 | % | | 11.6 | % | | | | 11.0 | % | | | | 10.8 | % | | | | |
| Total deposit balances | 100.0 | % | | 100.0 | % | | | | 100.0 | % | | | | 100.0 | % | | | | |
BBCN Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| CAPITAL RATIOS | 6/30/2016 | | 3/31/2016 | | 12/31/2015 | | 6/30/2015 | | | | | | |
| Total stockholders’ equity | $ | 971,740 |
| | $ | 961,982 |
| | $ | 938,095 |
| | $ | 908,588 |
| | | | | | |
| Common Equity Tier 1 ratio | 11.66 | % | | 11.96 | % | | 12.08 | % | | 12.58 | % | | | | | | |
| Tier 1 risk-based capital ratio | 12.22 | % | | 12.54 | % | | 12.67 | % | | 13.22 | % | | | | | | |
| Total risk-based capital ratio | 13.28 | % | | 13.64 | % | | 13.80 | % | | 14.34 | % | | | | | | |
| Tier 1 leverage ratio | 11.14 | % | | 11.44 | % | | 11.53 | % | | 11.80 | % | | | | | | |
| Total risk weighted assets | $ | 7,329,828 |
| | $ | 7,093,779 |
| | $ | 6,905,154 |
| | $ | 6,380,538 |
| | | | | | |
| Book value per common share | $ | 12.21 |
| | $ | 12.09 |
| | $ | 11.79 |
| | $ | 11.42 |
| | | | | | |
Tangible common equity to tangible assets 2 | 10.50 | % | | 10.73 | % | | 10.63 | % | | 11.07 | % | | | | | | |
Tangible common equity per share 2 | $ | 10.85 |
| | $ | 10.73 |
| | $ | 10.43 |
| | $ | 10.05 |
| | | | | | |
| | | | | | | | | | | | | | |
2 Tangible common equity to tangible assets is a non-GAAP financial measure that represents common equity less goodwill and core deposit intangible assets, net divided by total assets less goodwill and core deposit intangible assets, net. Management reviews tangible common equity to tangible assets in evaluating the Company’s capital levels and has included this ratio in response to market participant interest in tangible common equity as a measure of capital. | | | | |
| | | | | | | | | | | | | | |
| Reconciliation of GAAP financial measures to non-GAAP financial measures: | | | | | | | | |
| | 6/30/2016 | | 3/31/2016 | | 12/31/2015 | | 6/30/2015 | | | | | | |
| Total stockholders’ equity | $ | 971,740 |
| | $ | 961,982 |
| | $ | 938,095 |
| | $ | 908,588 |
| | | | | | |
| Less: Goodwill and core deposit intangible assets, net | (107,796 | ) | | (108,008 | ) | | (108,221 | ) | | (108,755 | ) | | | | | | |
| Tangible common equity | $ | 863,944 |
| | $ | 853,974 |
| | $ | 829,874 |
| | $ | 799,833 |
| | | | | | |
| | | | | | | | | | | | | | |
| Total assets | $ | 8,337,172 |
| | $ | 8,063,752 |
| | $ | 7,912,648 |
| | $ | 7,333,319 |
| | | | | | |
| Less: Goodwill and core deposit intangible assets, net | (107,796 | ) | | (108,008 | ) | | (108,221 | ) | | (108,755 | ) | | | | | | |
| Tangible assets | $ | 8,229,376 |
| | $ | 7,955,744 |
| | $ | 7,804,427 |
| | $ | 7,224,564 |
| | | | | | |
| | | | | | | | | | | | | | |
| Common shares outstanding | 79,606,821 |
| | 79,597,106 |
| | 79,566,356 |
| | 79,550,403 |
| | | | | | |
| | | | | | | | | | | | | | |
| Tangible common equity to tangible assets | 10.50 | % | | 10.73 | % | | 10.63 | % | | 11.07 | % | | | | | | |
| Tangible common equity per share | $ | 10.85 |
| | $ | 10.73 |
| | $ | 10.43 |
| | $ | 10.05 |
| | | | | | |
| | | | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended |
| ALLOWANCE FOR LOAN LOSSES: | 6/30/2016 | | 3/31/2016 | | 12/31/2015 | | 9/30/2015 | | 6/30/2015 | | 6/30/2016 | | 6/30/2015 |
| Balance at beginning of period | $ | 76,856 |
| | $ | 76,408 |
| | $ | 71,110 |
| | $ | 70,118 |
| | $ | 69,594 |
| | $ | 76,408 |
| | $ | 67,758 |
|
| Provision for loan losses | 1,200 |
| | 500 |
| | 4,900 |
| | 600 |
| | 1,000 |
| | 1,700 |
| | 2,500 |
|
| Recoveries | 664 |
| | 769 |
| | 955 |
| | 2,171 |
| | 975 |
| | 1,433 |
| | 2,436 |
|
| Charge offs | (2,295 | ) | | (821 | ) | | (557 | ) | | (1,779 | ) | | (1,451 | ) | | (3,116 | ) | | (2,576 | ) |
| Balance at end of period | $ | 76,425 |
| | $ | 76,856 |
| | $ | 76,408 |
| | $ | 71,110 |
| | $ | 70,118 |
| | $ | 76,425 |
| | $ | 70,118 |
|
| Net annualized charge offs (recoveries) / average gross loans | 0.10 | % | | — | % | | (0.03 | )% | | (0.03 | )% | | 0.03 | % | | 0.05 | % | | 0.03 | % |
| | | | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended |
| NET CHARGED OFF (RECOVERED) LOANS BY TYPE | 6/30/2016 | | 3/31/2016 | | 12/31/2015 | | 9/30/2015 | | 6/30/2015 | | 6/30/2016 | | 6/30/2015 |
| Real estate loans | $ | 18 |
| | $ | (390 | ) | | $ | (254 | ) | | $ | (505 | ) | | $ | 13 |
| | $ | (372 | ) | | $ | (447 | ) |
| Commercial loans | 1,649 |
| | 379 |
| | (127 | ) | | (25 | ) | | 560 |
| | 2,028 |
| | 671 |
|
| Consumer loans | (36 | ) | | 63 |
| | (17 | ) | | 138 |
| | (97 | ) | | 27 |
| | (84 | ) |
| Charge offs (recoveries) excluding Acquired Credit Impaired Loans | 1,631 |
| | 52 |
| | (398 | ) | | (392 | ) | | 476 |
| | 1,683 |
| | 140 |
|
| Charge offs on Acquired Credit Impaired Loans | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Total net charge offs (recoveries) | $ | 1,631 |
| | $ | 52 |
| | $ | (398 | ) | | $ | (392 | ) | | $ | 476 |
| | $ | 1,683 |
| | $ | 140 |
|
BBCN Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
|
| | | | | | | | | | | | | | | | | | | |
| NONPERFORMING ASSETS | 6/30/2016 | | 3/31/2016 | | 12/31/2015 | | 9/30/2015 | | 6/30/2015 |
Delinquent loans on nonaccrual status 3 | $ | 42,398 |
| | $ | 43,548 |
| | $ | 40,801 |
| | $ | 32,446 |
| | $ | 39,681 |
|
Delinquent loans 90 days or more on accrual status 4 | 147 |
| | 45 |
| | 375 |
| | — |
| | 333 |
|
| Accruing restructured loans | 50,837 |
| | 52,760 |
| | 47,984 |
| | 54,274 |
| | 57,393 |
|
| Total nonperforming loans | 93,382 |
| | 96,353 |
| | 89,160 |
| | 86,720 |
| | 97,407 |
|
| Other real estate owned | 16,392 |
| | 19,794 |
| | 21,035 |
| | 21,350 |
| | 20,187 |
|
| Total nonperforming assets | $ | 109,774 |
| | $ | 116,147 |
| | $ | 110,195 |
| | $ | 108,070 |
| | $ | 117,594 |
|
| Nonperforming assets/total assets | 1.32 | % | | 1.44 | % | | 1.39 | % | | 1.43 | % | | 1.60 | % |
| Nonperforming assets/loans receivable & OREO | 1.66 | % | | 1.82 | % | | 1.76 | % | | 1.80 | % | | 2.01 | % |
| Nonperforming assets/total capital | 11.30 | % | | 12.07 | % | | 11.75 | % | | 11.63 | % | | 12.94 | % |
| Nonperforming loans/loans receivable | 1.42 | % | | 1.51 | % | | 1.43 | % | | 1.45 | % | | 1.67 | % |
| Nonaccrual loans/loans receivable | 0.64 | % | | 0.68 | % | | 0.65 | % | | 0.54 | % | | 0.68 | % |
| Allowance for loan losses/loans receivable | 1.16 | % | | 1.21 | % | | 1.22 | % | | 1.19 | % | | 1.21 | % |
| Allowance for loan losses/nonaccrual loans | 180.26 | % | | 176.49 | % | | 187.27 | % | | 219.16 | % | | 176.70 | % |
| Allowance for loan losses/nonperforming loans | 81.84 | % | | 79.77 | % | | 85.70 | % | | 82.00 | % | | 71.98 | % |
| Allowance for loan losses/nonperforming assets | 69.62 | % | | 66.17 | % | | 69.34 | % | | 65.80 | % | | 59.63 | % |
| | | | | | | | | | |
3 Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $15.5 million, $15.4 million, $18.7 million, $19.9 million, and $22.6 million at June 30, 2016, March 31, 2016, December 31, 2015, September, 30, 2015, and June 30, 2015, respectively. |
4 Excludes Acquired Credit Impaired Loans totaling $13.8 million, $13.1 million, $12.2 million, $18.5 million, and $23.0 million, at June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015, respectively. |
| | | | | | | | | | |
| BREAKDOWN OF ACCRUING RESTRUCTURED LOANS BY TYPE: | 6/30/2016 | | 3/31/2016 | | 12/31/2015 | | 9/30/2015 | | 6/30/2015 |
| Retail buildings | $ | 4,565 |
| | $ | 4,598 |
| | $ | 5,593 |
| | $ | 5,631 |
| | $ | 5,705 |
|
| Hotels/motels | 1,324 |
| | 1,336 |
| | 1,342 |
| | 7,632 |
| | 8,012 |
|
| Gas stations/car washes | 835 |
| | 840 |
| | 845 |
| | — |
| | — |
|
| Mixed-use facilities | 1,111 |
| | 1,117 |
| | 1,124 |
| | 775 |
| | 844 |
|
| Warehouses | 5,512 |
| | 5,575 |
| | 5,635 |
| | 5,698 |
| | 5,759 |
|
Other 5 | 37,490 |
| | 39,294 |
| | 33,445 |
| | 34,538 |
| | 37,073 |
|
| Total | $ | 50,837 |
| | $ | 52,760 |
| | $ | 47,984 |
| | $ | 54,274 |
| | $ | 57,393 |
|
| | | | | | | | | | |
5 Includes commercial business and other loans | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| DELINQUENT LOANS LESS THAN 90 DAYS PAST DUE | 6/30/2016 | | 3/31/2016 | | 12/31/2015 | | 9/30/2015 | | 6/30/2015 |
| Legacy | | | | | | | | | |
| 30 - 59 days | $ | 2,920 |
| | $ | 4,488 |
| | $ | 3,104 |
| | $ | 4,380 |
| | $ | 3,457 |
|
| 60 - 89 days | 1,427 |
| | 1,510 |
| | 1,678 |
| | 2,874 |
| | 1,546 |
|
| Total delinquent loans less than 90 days past due - legacy | $ | 4,347 |
| | $ | 5,998 |
| | $ | 4,782 |
| | $ | 7,254 |
| | $ | 5,003 |
|
| | | | | | | | | | |
| Acquired | | | | | | | | | |
| 30 - 59 days | $ | 2,735 |
| | $ | 1,456 |
| | $ | 3,170 |
| | $ | 2,382 |
| | $ | 1,553 |
|
| 60 - 89 days | 345 |
| | 47 |
| | 39 |
| | 147 |
| | 629 |
|
| Total delinquent loans less than 90 days past due - acquired | $ | 3,080 |
| | $ | 1,503 |
| | $ | 3,209 |
| | $ | 2,529 |
| | $ | 2,182 |
|
| | | | | | | | | | |
| Total delinquent loans less than 90 days past due | $ | 7,427 |
| | $ | 7,501 |
| | $ | 7,991 |
| | $ | 9,783 |
| | $ | 7,185 |
|
| | | | | | | | | | |
BBCN Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
|
| | | | | | | | | | | | | | | | | | | |
| DELINQUENT LOANS LESS THAN 90 DAYS PAST DUE BY TYPE | 6/30/2016 | | 3/31/2016 | | 12/31/2015 | | 9/30/2015 | | 6/30/2015 |
| Legacy | | | | | | | | | |
| Real estate loans | $ | 2,047 |
| | $ | 1,624 |
| | $ | 2,179 |
| | $ | 2,467 |
| | $ | 2,240 |
|
| Commercial loans | 2,215 |
| | 1,441 |
| | 1,676 |
| | 4,737 |
| | 2,734 |
|
| Consumer loans | 85 |
| | 2,933 |
| | 927 |
| | 50 |
| | 29 |
|
| Total delinquent loans less than 90 days past due - legacy | $ | 4,347 |
| | $ | 5,998 |
| | $ | 4,782 |
| | $ | 7,254 |
| | $ | 5,003 |
|
| | | | | | | | | | |
| Acquired | | | | | | | | | |
| Real estate loans | $ | 2,557 |
| | $ | 1,189 |
| | $ | 2,572 |
| | $ | 2,335 |
| | $ | 1,843 |
|
| Commercial loans | 211 |
| | 314 |
| | 349 |
| | 164 |
| | 333 |
|
| Consumer loans | 312 |
| | — |
| | 288 |
| | 30 |
| | 6 |
|
| Total delinquent loans less than 90 days past due - acquired | $ | 3,080 |
| | $ | 1,503 |
| | $ | 3,209 |
| | $ | 2,529 |
| | $ | 2,182 |
|
| | | | | | | | | | |
| Total delinquent loans less than 90 days past due | $ | 7,427 |
| | $ | 7,501 |
| | $ | 7,991 |
| | $ | 9,783 |
| | $ | 7,185 |
|
| | | | | | | | | | |
| | | | | | | | | | |
| NONACCRUAL LOANS BY TYPE | 6/30/2016 | | 3/31/2016 | | 12/31/2015 | | 9/30/2015 | | 6/30/2015 |
| Real estate loans | $ | 25,306 |
| | $ | 26,123 |
| | $ | 24,375 |
| | $ | 23,361 |
| | $ | 25,922 |
|
| Commercial loans | 16,270 |
| | 16,842 |
| | 15,600 |
| | 7,995 |
| | 12,031 |
|
| Consumer loans | 822 |
| | 583 |
| | 826 |
| | 1,090 |
| | 1,728 |
|
| Total non-accrual loans | $ | 42,398 |
| | $ | 43,548 |
| | $ | 40,801 |
| | $ | 32,446 |
| | $ | 39,681 |
|
| | | | | | | | | | |
| CRITICIZED LOANS | 6/30/2016 | | 3/31/2016 | | 12/31/2015 | | 9/30/2015 | | 6/30/2015 |
| Legacy | | | | | | | | | |
| Special mention | $ | 80,923 |
| | $ | 87,025 |
| | $ | 85,945 |
| | $ | 116,267 |
| | $ | 102,725 |
|
| Substandard | 128,885 |
| | 129,314 |
| | 126,880 |
| | 97,225 |
| | 103,074 |
|
| Doubtful | 108 |
| | 133 |
| | 20 |
| | 184 |
| | 220 |
|
| Loss | — |
| | — |
| | — |
| | — |
| | — |
|
| Total criticized loans - legacy | $ | 209,916 |
| | $ | 216,472 |
| | $ | 212,845 |
| | $ | 213,676 |
| | $ | 206,019 |
|
| | | | | | | | | | |
| Acquired | | | | | | | | | |
| Special mention | $ | 19,447 |
| | $ | 17,017 |
| | $ | 18,241 |
| | $ | 25,388 |
| | $ | 27,070 |
|
| Substandard | 67,261 |
| | 71,954 |
| | 74,482 |
| | 79,774 |
| | 90,262 |
|
| Doubtful | 2,603 |
| | 1,997 |
| | 2,194 |
| | 1,537 |
| | 1,833 |
|
| Loss | — |
| | — |
| | — |
| | — |
| | — |
|
| Total criticized loans - acquired | $ | 89,311 |
| | $ | 90,968 |
| | $ | 94,917 |
| | $ | 106,699 |
| | $ | 119,165 |
|
| | | | | | | | | | |
| Total criticized loans | $ | 299,227 |
| | $ | 307,440 |
| | $ | 307,762 |
| | $ | 320,375 |
| | $ | 325,184 |
|
