Exhibit 99.1
Nara Bancorp Reports Financial Results for First Quarter 2010
Q1 2010 Summary:
- Net loss of $0.10 per common share
- Allowance for loan losses increased to 2.98% from 2.69%
- Improving deposit mix driven by growth in core deposits
- Efficiency ratio improved to 40.96% from 47.03% in Q4 2009
- Total non-performing assets increased $16 million
- All capital ratios increased over Q4 2009 levels
LOS ANGELES--(BUSINESS WIRE)--April 26, 2010--Nara Bancorp, Inc. (the “Company”) (NASDAQ:NARA), the holding company of Nara Bank (the “Bank”), reported a net loss available to common stockholders of ($3.6) million, or ($0.10) per diluted share, for first quarter 2010, compared to a net loss available to common stockholders of ($4.2) million, or ($0.16) per diluted share, for first quarter 2009, and a net loss available to common stockholders of ($1.5) million, or ($0.04) per diluted share, for fourth quarter 2009.
Alvin Kang, President and Chief Executive Officer, said, “We have not seen a noticeable improvement in economic conditions in our markets, so our primary focus remains on balance sheet management. We continue to see an increase in non-performing assets, and we have responded by aggressively charging-off loans and further increasing our allowance for loan losses. Our liquidity, capital and reserves remain at high levels. We continue to successfully increase our base of core deposits, which has enabled us to reduce our balances of higher-cost certificates of deposit. This is having a positive impact on our cost of funds, which should improve our earnings power later in the year.”
Financial Highlights
| | | | 2010 First Quarter | | 2009 First Quarter | | 2009 Fourth Quarter |
| | | | (Dollars in thousands) |
| Net loss | | | $ | (2,532 | ) | | | $ | (3,180 | ) | | | $ | (476 | ) |
| Net loss available to common stockholders | | | $ | (3,603 | ) | | | $ | (4,248 | ) | | | $ | (1,546 | ) |
| Diluted loss per share | | | $ | (0.10 | ) | | | $ | (0.16 | ) | | | $ | (0.04 | ) |
| Net interest income | | | $ | 25,243 | | | | $ | 20,421 | | | | $ | 26,414 | |
| Net interest margin | | | | 3.31 | % | | | | 3.19 | % | | | | 3.34 | % |
| Non-interest income | | | $ | 9,384 | | | | $ | 4,383 | | | | $ | 5,424 | |
| Non-interest expense | | | $ | 14,184 | | | | $ | 15,248 | | | | $ | 14,975 | |
| Net loans receivable | | | $ | 2,098,269 | | | | $ | 2,057,875 | | | | $ | 2,162,009 | |
| Deposits | | | $ | 2,281,792 | | | | $ | 2,098,312 | | | | $ | 2,434,190 | |
| Non-performing loans * | | | $ | 63,232 | | | | $ | 41,337 | | | | $ | 51,674 | |
| ALLL to gross loans * | | | | 2.98 | % | | | | 2.42 | % | | | | 2.69 | % |
| ALLL to non-performing loans * | | | | 101 | % | | | | 122 | % | | | | 115 | % |
| Provision for loan losses | | | $ | 25,407 | | | | $ | 15,670 | | | | $ | 17,853 | |
| Efficiency ratio | | | | 40.96 | % | | | | 61.47 | % | | | | 47.03 | % |
| | | | | | | | | |
| * Excludes the guaranteed portion of delinquent SBA loans totaling $14.8 million, $20.2 million and $12.5 million at first quarter 2010, first quarter 2009 and fourth quarter 2009, respectively. |
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Operating Results for First Quarter 2010
Net Interest Income and Net Interest Margin. First quarter 2010 net interest income before provision for loan losses was $25.2 million, an increase of 24% from first quarter 2009. The increase in net interest income was due to a 19% increase in average interest earning assets and an improved net interest margin.
First quarter 2010 net interest margin (net interest income divided by average interest-earning assets) increased 12 basis points to 3.31% from 3.19% for first quarter 2009. With no change in the prime rate since December of 2008, the yield on loans remained relatively stable while interest-bearing deposits gradually re-priced downward during 2009. However, the yield on securities available-for-sale declined 101 basis points as certain higher yielding securities were sold as part of rebalancing the duration and mix of the investment portfolio. Additionally, higher levels of cash held at the Federal Reserve Bank to cover anticipated CD maturity outflows, affected the overall decline in the yield on interest-earning assets to 5.07% for first quarter 2010, from 5.64% for the same quarter 2009.
The weighted average yield on the loan portfolio for first quarter 2010 increased 5 basis points to 6.06% from 6.01% for the same period last year. At March 31, 2010, fixed rate loans were 51% of the loan portfolio, compared to 49% at March 31, 2009. The weighted average yield on the variable rate and fixed rate loan portfolios (excluding loan discount accretion) at March 31, 2010 was 4.57% and 7.23%, respectively, compared to 4.52% and 7.63% at March 31, 2009.
The weighted average yield on securities available-for-sale (“AFS”) for first quarter 2010 decreased 101 basis points to 3.07% from 4.08% for the same period 2009. The decrease was primarily attributable to $768 million in new investment securities purchased during 2009, which had lower yields than the weighed average yield of the portfolio at March 31, 2009. The weighted average yield on AFS investment securities purchased during 2009 was 3.80%. The decrease was also affected by an increase in premium amortization of FNMA and FHLMC mortgage related securities due to the increase in the prepayments of approximately $28.6 million as a result of FNMA and FHLMC accelerated purchases of seriously delinquent loans, under revised guidelines announced on February 10, 2010.
The weighted average cost of deposits for first quarter 2010 decreased 73 basis points to 1.68% from 2.41% for the same period last year. The cost of time deposits decreased 57 basis points to 2.24% from 2.81% for the same period last year.
The weighted average cost of FHLB advances for first quarter 2010 also decreased 6 basis points to 3.45% for first quarter 2010, compared to 3.51% for first quarter 2009.
Following are the weighted average rate data on a spot rate basis at March 31, 2010 and 2009:
| | | | March 31, |
| | | | 2010 | | | 2009 |
| Weighted average loan portfolio yield (excluding discounts) | | | 5.94 | % | | | 5.95 | % |
| Weighted average securities available-for-sale portfolio yield | | | 2.95 | % | | | 4.25 | % |
| Weighted average cost of deposits | | | 1.42 | % | | | 2.42 | % |
| Weighted average cost of total interest-bearing deposits | | | 1.70 | % | | | 2.83 | % |
| Weighted average cost of FHLB advances | | | 3.42 | % | | | 3.70 | % |
| Net interest margin | | | 3.34 | % | | | 2.87 | % |
| | | | | | | | |
Sequentially, first quarter 2010 net interest income before provision for loan losses decreased $1.2 million, or 4%, from fourth quarter 2009. The decrease was attributable to a decrease in average interest-earning assets as well as net interest margin compression. Average interest-earning assets decreased $111.5 million, or 3.5%, to $3.05 billion at March 31, 2010, compared to $3.16 billion at December 31, 2009. The net interest margin decreased by 3 basis points to 3.31% for first quarter 2010 from 3.34% for fourth quarter 2009. The decrease in net interest margin was primarily due to the effect of the FNMA and FHLMC Buyout program and the decrease in the yield on investment securities as previously mentioned.
Non-accrual loan interest reversed was $788 thousand, $394 thousand, and $581 thousand for first quarter 2010, first quarter 2009, and fourth quarter 2009, respectively. Excluding this effect, the net interest margin for first quarter 2010, first quarter 2009, and fourth quarter 2009 was 3.42%, 3.26%, and 3.42%, respectively.
Prepayment penalty income for first quarter 2010, first quarter 2009 and fourth quarter 2009 was $173 thousand, $147 thousand and $166 thousand, respectively. Excluding the effects of both non-accrual loan interest reversed and prepayment penalty income, the net interest margin for first quarter 2010, first quarter 2009 and fourth quarter 2009 was 3.39%, 3.23% and 3.40%, respectively.
Non-interest Income. First quarter 2010 non-interest income was $9.4 million, an increase of $5.0 million, or 114%, compared to first quarter 2009. The increase was primarily due to net gains on sales of securities of $6.3 million during first quarter 2010, compared to $785 thousand during first quarter 2009. A total of $201.8 million in available-for-sale GSE investment securities were sold to rebalance the duration and mix of the investment securities portfolio and to hold higher levels of cash to fund CD maturities. A total of $42.9 million in investment securities were sold during first quarter 2009.
Sequentially, non-interest income increased 73% from fourth quarter 2009. The increase was primarily due to net gains on sale of securities during first quarter 2010, offset by lower net gains from the sale of loans compared to fourth quarter 2009, as a result of new accounting literature adopted January 1, 2010, which requires the Company to defer gain on sales of SBA loans until the 90 days recourse provision expires.
Non-interest Expense. First quarter 2010 non-interest expense was $14.2 million, a decrease of 7% from $15.2 million for the same period last year. The decrease was primarily due to decreases in salaries and benefits expense and credit related expense, offset by an increase in FDIC insurance premiums. Salaries and benefits expense decreased $850 thousand, or 13%, to $5.6 million for first quarter 2010, compared to $6.4 million for the same quarter of 2009. The decrease is primarily due to decreases in stock compensation expense and in the number of full-time equivalent employees, which decreased to 338 at March 31, 2010 from 367 at March 31, 2009. The stock compensation expense decreased $530 thousand, or 92%, to $48 thousand for first quarter 2010, compared to $578 thousand for the same period last year. The decrease was primarily due to the vesting and cancellation of certain stock options and grants.
Credit related expense decreased $925 thousand, or 62%, to $563 thousand for first quarter 2010, compared to $1.5 million for the same period last year. The decrease was primarily due to decreases in OREO related expenses and provision for uncollectible SBA receivables. The OREO related expenses decreased $358 thousand, or 71%, to $145 thousand for first quarter 2010, compared to $503 thousand for same period last year. During first quarter 2009, the Company provided $330 thousand as an allowance for doubtful SBA receivables. There was no such expense during first quarter 2010. FDIC insurance premiums increased $617 thousand, or 82%, to $1.4 million for first quarter 2010, compared to $750 thousand for the same quarter of 2009. The increase is due to an increase in the assessment rate beginning in 2010.
Sequentially, non-interest expense for first quarter 2010 decreased by 5% from $15.0 million in fourth quarter 2009, primarily due to decreases in salaries and benefits expense and credit related expenses, offset by increases in advertising expense and FDIC insurance assessment.
Income Taxes. The effective income tax benefit rate was 49% for first quarter 2010 compared to 48% for first quarter 2009 and 52% for fourth quarter 2009. The higher effective tax benefit rate for fourth quarter 2009 was due to the effect of higher tax credits recognized.
Balance Sheet Summary
Gross loans receivable were $2.16 billion at March 31, 2010, a decrease of $59 million from $2.22 billion at December 31, 2009. New loan production was $48.6 million during first quarter 2010, compared to $149.2 million during fourth quarter 2009, and $62.8 million during first quarter 2009. The lower production during first quarter 2009 was attributable to slower loan demand, our tightened underwriting criteria, and our focus in commercial business lending rather than commercial real estate lending. Loan pay-offs, pay-downs, amortization and other changes totaled $107.0 million during first quarter 2010, compared to $78.3 million during fourth quarter 2009 and $71.9 million during first quarter 2009. Included in pay-downs for first quarter 2010 were 6 problem loans in amount of $25 million that were transferred to loans held for sale.
Total deposits were $2.28 billion at March 31, 2010, a decrease of 6% from $2.43 billion at December 31, 2009. The decrease in total deposits was primarily due to a decrease in retail jumbo CDs. Retail jumbo CDs decreased $257.8 million, or 35%, to $474.6 million at March 31, 2010 from $732.5 million at December 31, 2009. The majority of these jumbo CDs were deposits raised during the campaign held during the first and second quarters of 2009 to strengthen liquidity. Approximately 51% of these matured retail jumbo CDs were retained and either repriced to lower rate CDs or moved to other interest-bearing accounts. The weighted average cost of such deposits decreased 159 basis points to 1.50% at March 31, 2010.
Credit Quality
The Company recorded a provision for loan losses of $25.4 million in first quarter 2010, compared to $15.7 million for the same period of the prior year and $17.9 million in fourth quarter 2009. The increase in the provision for loan losses from fourth quarter 2009 was primarily due to the impact of higher net charge-offs, increases in impaired loans requiring specific reserves or charge-offs, and increases in Special Mention and Classified loans, subject to general allowances.
Total Watchlist loans, defined as Special Mention and Classified loans, were $215.3 million at March 31, 2010, an increase from $199.9 million at December 31, 2009. The increase was primarily in Substandard loans which increased to $169.1 million at March 31, 2010, from $153.5 million at December 31, 2009, primarily due to commercial real estate loans (“CRE”) to the hospitality industry.
Total delinquent loans, 30 or more days delinquent, were $75.6 million at March 31, 2010, compared to $69.5 million at December 31, 2009. Loans past due 30 – 59 days decreased to $8.4 million at March 31, 2010, from $14.9 million at December 31, 2009. Loans past due 60-89 days increased to $4.0 million at March 31, 2010, from $2.9 million at December 31, 2009. Non-performing loans (loans past due 90 days or more and non-accrual) at March 31, 2010, were $63.2 million, or 2.94% of total loans, compared to $51.7 million, or 2.34% of total loans, at December 31, 2009. CRE and commercial and industrial loans (“C & I”) loans contributed 70% and 30%, respectively, of new inflows to non-performing loans for the first quarter 2010.
Non-performing assets, comprised of non-accrual loans, accruing restructured loans and other real estate owned, at March 31, 2010 were $134.1 million, or 6.23% of gross loans plus other real estate owned, compared to $118.1 million, or 5.34%, at December 31, 2009. Other real estate owned increased to $5.9 million at March 31, 2010, compared to $2.0 million at December 31, 2009, as five new properties totaling $4.6 million were transferred in as other real estate owned, which was offset by sales of $700 thousand. Accruing troubled debt restructured loans included in non-performing assets, increased $685 thousand to $65.0 million at March 31, 2010, from $64.3 million at December 31, 2009.
Net loan charge-offs during first quarter 2010 were $20.8 million, or 3.79% of average loans on an annualized basis, compared to $8.6 million, or 1.63% during first quarter 2009, and $11.4 million, or 2.08% of average loans, during fourth quarter 2009. CRE and C&I loans represented 62% and 37%, respectively, of charge-offs during first quarter 2010. First quarter 2010 charge-offs included five relationships totaling $7.7 million consisting of CRE loans. Excluding these five relationships, the average charge-off during the quarter was $153 thousand.
The allowance for loan losses at March 31, 2010 was $64.0 million, or 2.98% of gross loans receivable (net of the guaranteed portion of delinquent SBA loans), compared to $59.4 million, or 2.69%, at December 31, 2009. The ratio of the allowance for loan losses to non-performing loans was 101% at March 31, 2010, compared to 115% at December 31, 2009.
Impaired loans (defined as loans where it is probable that all principal and interest payments due will not be collectible according to contractual terms) at March 31, 2010, were $146.5 million, an increase from $120.5 million at December 31, 2009. CRE and C&I loans represented 73% and 27%, respectively, of new impaired loans during first quarter 2010. Specific reserves for impaired loans were $26.1 million, or 17.8% of the aggregate impaired loan amount at March 31, 2010, compared to $19.8 million, or 16.43% of the aggregate impaired loan amount at December 31, 2009. Excluding specific reserves for impaired loans, the allowance coverage on the remaining loan portfolio was 1.89% at March 31, 2010, compared to 1.90% at December 31, 2009.
Capital
At March 31, 2010, the Company continued to be in excess of the regulatory capital requirements to be classified as a “well-capitalized” institution. The Leverage Ratio was 12.49% at March 31, 2010, compared to 12.36% at December 31, 2009. The Tier 1 Risk-based Ratio was 17.10% at March 31, 2010, compared to 16.73% at December 31, 2009. The Total Risk-based Ratio was 18.37% at March 31, 2010, compared to 17.99% at December 31, 2009.
At March 31, 2010, common equity represented 9.68% of total assets, compared to 9.37% at December 31, 2009. Tangible common equity (TCE) represented 9.58% of tangible assets at March 31, 2010, compared to 9.27% of tangible assets at December 31, 2009.
Tangible common equity to tangible assets is a non-GAAP financial measure that represents common equity less goodwill and other intangible assets, net divided by total assets less goodwill and other 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. See the accompanying financial information for a reconciliation of the ratio of tangible common equity to tangible assets with stockholders' equity and total assets.
Conference Call and Webcast
A conference call with simultaneous webcast to discuss the Company’s first quarter 2010 financial results will be held tomorrow, April 27, 2010 at 9:30 am Pacific / 12:30 pm Eastern. Interested participants and investors may access the conference call by dialing 800-762-8795 (domestic) or 480-629-9774 (international), conference ID# 4283463. There will also be a live webcast of the call available at the Investor Relations section of Nara Bank’s web site at www.narabank.com.
After the live webcast, a replay will remain available in the Investor Relations section of Nara Bancorp’s web site. A replay of the call will be available at 800-406-7325 (domestic) or 303-590-3030 (international) through May 4, 2010, conference ID# 4283463.
About Nara Bancorp, Inc.
Nara Bancorp, Inc. is the parent company of Nara Bank, which was founded in 1989. Nara Bank is a full-service community bank headquartered in Los Angeles, with 20 branches and 1 loan production office in the United States. Nara Bank operates full-service branches in California, New York and New Jersey, and a loan production office in Texas. Nara Bank was founded specifically to serve the needs of Korean-Americans. Presently, Nara Bank serves a diverse group of customers mirroring its communities. Nara Bank specializes in core business banking products for small and medium-sized companies, with an emphasis in commercial real estate and business lending, SBA lending and international trade financing. Nara Bank is a member of the FDIC and is an Equal Opportunity Lender.
Forward-Looking Statements
This press release contains forward-looking statements, including statements about future operations and projected full-year financial results that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward looking statements. These risks and uncertainties include but are not limited to economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services, and pricing. 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.
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| Nara Bancorp, Inc. |
| Consolidated Statements of Financial Condition |
| Unaudited (Dollars in Thousands) |
| Nara Bancorp, Inc. |
| | | | | | | | | | |
| Assets | | 3/31/2010 | | 12/31/2009 | | % change | | 3/31/2009 | | % change |
| | | | | | | | | | |
| Cash and due from banks | | $ | 260,030 | | | $ | 105,592 | | | 146 | % | | $ | 44,705 | | | 482 | % |
| Federal funds sold | | | 20,000 | | | | 20,000 | | | 0 | % | | | 150,000 | | | -87 | % |
| Securities available for sale, at fair value | | | 498,801 | | | | 782,690 | | | -36 | % | | | 430,219 | | | 16 | % |
| Federal Home Loan Bank and Federal Reserve Bank stock | | | 24,334 | | | | 24,334 | | | 0 | % | | | 22,255 | | | 9 | % |
| Loans held for sale, at the lower of cost or market | | | 28,679 | | | | 4,756 | | | 503 | % | | | 10,965 | | | 162 | % |
| Loans receivable | | | 2,162,264 | | | | 2,221,433 | | | -3 | % | | | 2,108,379 | | | 3 | % |
| Allowance for loan losses | | | (63,995 | ) | | | (59,424 | ) | | 8 | % | | | (50,504 | ) | | 27 | % |
| Net loans receivable | | | 2,098,269 | | | | 2,162,009 | | | -3 | % | | | 2,057,875 | | | 2 | % |
| Accrued interest receivable | | | 9,723 | | | | 11,261 | | | -14 | % | | | 8,276 | | | 17 | % |
| Premises and equipment, net | | | 10,950 | | | | 10,865 | | | 1 | % | | | 11,749 | | | -7 | % |
| Bank owned life insurance | | | 23,645 | | | | 23,571 | | | 0 | % | | | 23,402 | | | 1 | % |
| Goodwill | | | 2,509 | | | | 2,509 | | | 0 | % | | | 2,509 | | | 0 | % |
| Other intangible assets, net | | | 915 | | | | 1,042 | | | -12 | % | | | 1,474 | | | -38 | % |
| Other assets | | | 101,165 | | | | 79,328 | | | 28 | % | | | 62,108 | | | 63 | % |
| Total assets | | $ | 3,079,020 | | | $ | 3,227,957 | | | -5 | % | | $ | 2,825,537 | | | 9 | % |
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| Liabilities | | | | | | | | | | |
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| Deposits | | $ | 2,281,792 | | | $ | 2,434,190 | | | -6 | % | | $ | 2,098,312 | | | 9 | % |
| Borrowings from Federal Home Loan Bank | | | 350,000 | | | | 350,000 | | | 0 | % | | | 350,000 | | | 0 | % |
| Other borrowings | | | 43,318 | | | | 39,268 | | | 10 | % | | | 39,268 | | | 10 | % |
| Accrued interest payable | | | 10,070 | | | | 12,674 | | | -21 | % | | | 9,273 | | | 9 | % |
| Other liabilities | | | 30,019 | | | | 23,850 | | | 26 | % | | | 38,999 | | | -23 | % |
| Total liabilities | | | 2,715,199 | | | | 2,859,982 | | | -5 | % | | | 2,535,852 | | | 7 | % |
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| Stockholders' Equity | | | | | | | | | | |
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| Preferred stock, $0.001 par value; authorized 10,000,000 undesignated shares; issued and outstanding 67,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A with a liquidation preference of $67,428,000 at March 31, 2010, December 31, 2009 and March 31, 2009 | | | 67,000 | | | | 67,000 | | | 0 | % | | | 67,000 | | | 0 | % |
| Preferred stock discount | | | (3,503 | ) | | | (3,737 | ) | | -6 | % | | | (4,434 | ) | | -21 | % |
| Common stock, $0.001 par value; authorized, 40,000,000 shares; issued and outstanding, 37,835,407, 37,824,007 and 26,256,960 shares at March 31, 2010, December 31, 2009 and March 31, 2009, respectively | | | 38 | | | | 38 | | | 0 | % | | | 26 | | | 46 | % |
| Capital surplus | | | 169,848 | | | | 169,806 | | | 0 | % | | | 87,435 | | | 94 | % |
| Retained earnings | | | 128,288 | | | | 131,891 | | | -3 | % | | | 137,643 | | | -7 | % |
| Accumulated other comprehensive income (loss), net | | | 2,150 | | | | 2,977 | | | -28 | % | | | 2,015 | | | -7 | % |
| Total stockholders' equity | | | 363,821 | | | | 367,975 | | | -1 | % | | | 289,685 | | | 26 | % |
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| Total liabilities and stockholders' equity | | $ | 3,079,020 | | | $ | 3,227,957 | | | -5 | % | | $ | 2,825,537 | | | 9 | % |
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| Nara Bancorp, Inc. |
| Consolidated Statements of Income (Loss) |
| Unaudited (Dollars in Thousands, Except for Per Share Data) |
| | | | | | | | | | |
| | Three Months Ended, |
| | 3/31/2010 | | 3/31/2009 | | % change | | 12/31/2009 | | % change |
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| Interest income: | | | | | | | | | | |
| Interest and fees on loans | | $ | 33,348 | | | $ | 31,672 | | | 5 | % | | $ | 34,041 | | | -2 | % |
| Interest on securities | | | 5,088 | | | | 4,320 | | | 18 | % | | | 7,649 | | | -33 | % |
| Interest on federal funds sold and other investments | | | 225 | | | | 49 | | | 359 | % | | | 180 | | | 25 | % |
| Total interest income | | | 38,661 | | | | 36,041 | | | 7 | % | | | 41,870 | | | -8 | % |
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| Interest expense: | | | | | | | | | | |
| Interest on deposits | | | 9,947 | | | | 11,825 | | | -16 | % | | | 11,808 | | | -16 | % |
| Interest on other borrowings | | | 3,471 | | | | 3,795 | | | -9 | % | | | 3,648 | | | -5 | % |
| Total interest expense | | | 13,418 | | | | 15,620 | | | -14 | % | | | 15,456 | | | -13 | % |
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| Net interest income before provision for loan losses | | | 25,243 | | | | 20,421 | | | 24 | % | | | 26,414 | | | -4 | % |
| Provision for loan losses | | | 25,407 | | | | 15,670 | | | 62 | % | | | 17,853 | | | 42 | % |
| Net interest income after provision for loan losses | | | (164 | ) | | | 4,751 | | | -103 | % | | | 8,561 | | | -102 | % |
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| Non-interest income: | | | | | | | | | | |
| Service fees on deposit accounts | | | 1,619 | | | | 1,769 | | | -8 | % | | | 1,616 | | | 0 | % |
| Net gains on sales of loans | | | 43 | | | | 450 | | | -90 | % | | | 556 | | | -92 | % |
| Net gains on sales of securities available-for-sale | | | 6,296 | | | | 785 | | | 702 | % | | | 1,700 | | | 270 | % |
| Net valuation losses on interest rate swaps | | | (231 | ) | | | (116 | ) | | -99 | % | | | (94 | ) | | -146 | % |
| Net gains (losses) on sales of OREO | | | 15 | | | | (130 | ) | | 112 | % | | | (8 | ) | | -288 | % |
| Other income and fees | | | 1,642 | | | | 1,625 | | | 1 | % | | | 1,654 | | | -1 | % |
| Total non-interest income | | | 9,384 | | | | 4,383 | | | 114 | % | | | 5,424 | | | 73 | % |
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| Non-interest expense: | | | | | | | | | | |
| Salaries and employee benefits | | | 5,593 | | | | 6,443 | | | -13 | % | | | 6,302 | | | -11 | % |
| Occupancy | | | 2,427 | | | | 2,426 | | | 0 | % | | | 2,482 | | | -2 | % |
| Furniture and equipment | | | 778 | | | | 695 | | | 12 | % | | | 764 | | | 2 | % |
| Advertising and marketing | | | 459 | | | | 457 | | | 0 | % | | | 323 | | | 42 | % |
| Data processing and communications | | | 933 | | | | 901 | | | 4 | % | | | 955 | | | -2 | % |
| Professional fees | | | 702 | | | | 678 | | | 4 | % | | | 698 | | | 1 | % |
| FDIC assessment | | | 1,367 | | | | 750 | | | 82 | % | | | 1,057 | | | 29 | % |
| Other | | | 1,925 | | | | 2,898 | | | -34 | % | | | 2,394 | | | -20 | % |
| Total non-interest expense | | | 14,184 | | | | 15,248 | | | -7 | % | | | 14,975 | | | -5 | % |
| Income (loss) before income taxes | | | (4,964 | ) | | | (6,114 | ) | | -19 | % | | | (990 | ) | | 401 | % |
| Income tax provision (benefit) | | | (2,432 | ) | | | (2,934 | ) | | -17 | % | | | (514 | ) | | 373 | % |
| Net income (loss) | | $ | (2,532 | ) | | $ | (3,180 | ) | | -20 | % | | $ | (476 | ) | | 432 | % |
| Dividends and discount accretion on preferred stock | | $ | (1,071 | ) | | $ | (1,068 | ) | | 0 | % | | $ | (1,070 | ) | | 0 | % |
| Net income (loss) available to common stockholders | | $ | (3,603 | ) | | $ | (4,248 | ) | | -15 | % | | $ | (1,546 | ) | | 133 | % |
| | | | | | | | | | |
| Earnings (Loss) Per Common Share: | | | | | | | | | | |
| Basic | | $ | (0.10 | ) | | $ | (0.16 | ) | | | | $ | (0.04 | ) | | |
| Diluted | | $ | (0.10 | ) | | $ | (0.16 | ) | | | | $ | (0.04 | ) | | |
| | | | | | | | | | |
| Average Shares Outstanding: | | | | | | | | | | |
| Basic | | | 37,828,587 | | | | 26,250,258 | | | | | | 34,571,292 | | | |
| Diluted | | | 37,828,587 | | | | 26,250,258 | | | | | | 34,571,292 | | | |
| | | | | | | | | | | | | | | | |
| |
| Nara Bancorp, Inc. |
| Supplemental Data |
| Unaudited (Dollars in Thousands, Except for Per Share Data) |
| | | | | | |
| | (Annualized) At or for the Three Months Ended, |
| Profitability measures: | | 3/31/2010 | | 3/31/2009 | | 12/31/2009 |
| ROA 1 | | -0.32 | % | | -0.47 | % | | -0.06 | % |
| ROE 1 | | -2.72 | % | | -4.36 | % | | -0.54 | % |
| Net interest margin * | | 3.31 | % | | 3.19 | % | | 3.34 | % |
| Efficiency ratio | | 40.96 | % | | 61.47 | % | | 47.03 | % |
| | | | | | |
| 1 based on net income before effect of dividends and discount accretion on preferred stock |
| |
| | | | | | |
| | Three Months Ended | | Three Months Ended | | Three Months Ended |
| | 3/31/2010 | | 3/31/2009 | | 12/31/2009 |
| | | | | | | | | | | | | | | | | | |
| | | | 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 |
| | (Dollars in thousands) | | (Dollars in thousands) | | (Dollars in thousands) |
| INTEREST EARNING ASSETS: | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Gross loans*, includes loans held for sale | | $ | 2,200,488 | | $ | 33,348 | | | 6.06 | % | | $ | 2,107,685 | | $ | 31,672 | | | 6.01 | % | | $ | 2,193,810 | | $ | 34,041 | | | 6.21 | % |
| Securities available for sale | | | 662,023 | | | 5,088 | | | 3.07 | % | | | 423,907 | | | 4,320 | | | 4.08 | % | | | 781,422 | | | 7,649 | | | 3.92 | % |
| FRB and FHLB stock and other investments | | | 166,191 | | | 183 | | | 0.44 | % | | | 22,880 | | | 48 | | | 0.84 | % | | | 165,193 | | | 124 | | | 0.30 | % |
| Federal funds sold | | | 20,000 | | | 42 | | | 0.84 | % | | | 2,267 | | | 1 | | | 0.18 | % | | | 19,783 | | | 56 | | | 1.13 | % |
| Total interest earning assets* | | $ | 3,048,702 | | $ | 38,661 | | | 5.07 | % | | $ | 2,556,739 | | $ | 36,041 | | | 5.64 | % | | $ | 3,160,208 | | $ | 41,870 | | | 5.30 | % |
| | | | | | | | | | | | | | | | | | |
| INTEREST BEARING LIABILITIES: | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | |
| Demand, interest-bearing | | $ | 504,666 | | $ | 1,288 | | | 1.02 | % | | $ | 342,843 | | $ | 2,265 | | | 2.64 | % | | $ | 558,389 | | $ | 1,696 | | | 1.21 | % |
| Savings | | | 134,441 | | | 805 | | | 2.40 | % | | | 111,233 | | | 1,008 | | | 3.62 | % | | | 138,924 | | | 892 | | | 2.57 | % |
| Time deposits: | | | | | | | | | | | | | | | | | | |
| $100,000 or more | | | 903,466 | | | 4,961 | | | 2.20 | % | | | 579,333 | | | 3,544 | | | 2.45 | % | | | 903,963 | | | 5,378 | | | 2.38 | % |
| Other | | | 500,067 | | | 2,893 | | | 2.31 | % | | | 637,226 | | | 5,008 | | | 3.14 | % | | | 541,183 | | | 3,842 | | | 2.84 | % |
| Total time deposits | | | 1,403,533 | | | 7,854 | | | 2.24 | % | | | 1,216,559 | | | 8,552 | | | 2.81 | % | | | 1,445,146 | | | 9,220 | | | 2.55 | % |
| Total interest bearing deposits | | | 2,042,640 | | | 9,947 | | | 1.95 | % | | | 1,670,635 | | | 11,825 | | | 2.83 | % | | | 2,142,459 | | | 11,808 | | | 2.20 | % |
| FHLB advances | | | 350,000 | | | 3,017 | | | 3.45 | % | | | 368,584 | | | 3,237 | | | 3.51 | % | | | 350,870 | | | 3,187 | | | 3.63 | % |
| Other borrowings | | | 39,767 | | | 454 | | | 4.57 | % | | | 39,734 | | | 558 | | | 5.62 | % | | | 37,774 | | | 461 | | | 4.88 | % |
| Total interest bearing liabilities | | | 2,432,407 | | $ | 13,418 | | | 2.21 | % | | | 2,078,953 | | $ | 15,620 | | | 3.01 | % | | | 2,531,103 | | $ | 15,456 | | | 2.44 | % |
| Non-interest bearing demand deposits | | | 331,875 | | | | | | | 291,324 | | | | | | 305,831 | | | | |
| Total funding liabilities / cost of funds | | $ | 2,764,282 | | | | 1.94 | % | | $ | 2,370,277 | | | | 2.64 | % | | $ | 2,836,934 | | | | 2.18 | % |
| Net interest income / net interest spread* | | | | $ | 25,243 | | | 2.87 | % | | | | $ | 20,421 | | | 2.63 | % | | | | $ | 26,414 | | | 2.86 | % |
| Net interest margin* | | | | | | 3.31 | % | | | | | | 3.19 | % | | | | | | 3.34 | % |
Net interest margin*, excluding effect of non-accrual loan expense | | | | | | 3.42 | % | | | | | | 3.26 | % | | | | | | 3.42 | % |
Net interest margin*, excluding effect of non-accrual loan expense and prepayment fee income | | | | | | 3.39 | % | | | | | | 3.23 | % | | | | | | 3.40 | % |
| | | | | | | | | | | | | | | | | | |
| Non-accrual loan income reversed | | | | $ | (788 | ) | | | | | | $ | (394 | ) | | | | | | $ | (581 | ) | | |
| Prepayment fee income received | | | | | 173 | | | | | | | | 147 | | | | | | | | 166 | | | |
| Net | | | | $ | (615 | ) | | | | | | $ | (247 | ) | | | | | | $ | (415 | ) | | |
| | | | | | | | | | | | | | | | | | |
| Cost of deposits: | | | | | | | | | | | | | | | | | | |
| Non-interest bearing demand deposits | | $ | 331,875 | | $ | - | | | | | $ | 291,324 | | $ | - | | | | | $ | 305,831 | | $ | - | | | |
| Interest bearing deposits | | | 2,042,640 | | | 9,947 | | | 1.95 | % | | | 1,670,635 | | | 11,825 | | | 2.83 | % | | | 2,142,459 | | | 11,808 | | | 2.20 | % |
| Total deposits | | $ | 2,374,515 | | $ | 9,947 | | | 1.68 | % | | $ | 1,961,959 | | $ | 11,825 | | | 2.41 | % | | $ | 2,448,290 | | $ | 11,808 | | | 1.93 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | For the Three Months Ended |
| | 3/31/2010 | | 3/31/2009 | | % change | | 12/31/2009 | | % change |
| AVERAGE BALANCES | | | | | | | | | | |
| Gross loans*, includes loans held for sale | | $ | 2,200,488 | | | $ | 2,107,685 | | | | 4 | % | | $ | 2,193,810 | | | 0 | % |
| Investments | | | 848,214 | | | | 449,054 | | | | 89 | % | | | 966,398 | | | -12 | % |
| Interest-earning assets* | | | 3,048,702 | | | | 2,556,739 | | | | 19 | % | | | 3,160,208 | | | -4 | % |
| Total assets | | | 3,176,343 | | | | 2,696,951 | | | | 18 | % | | | 3,235,147 | | | -2 | % |
| | | | | | | | | | |
| Interest-bearing deposits | | | 2,042,640 | | | | 1,670,635 | | | | 22 | % | | | 2,142,459 | | | -5 | % |
| Interest-bearing liabilities | | | 2,432,407 | | | | 2,078,953 | | | | 17 | % | | | 2,531,103 | | | -4 | % |
| Non-interest-bearing demand deposits | | | 331,875 | | | | 291,324 | | | | 14 | % | | | 305,831 | | | 9 | % |
| Stockholders' Equity | | | 372,363 | | | | 291,908 | | | | 28 | % | | | 351,779 | | | 6 | % |
| Net interest earning assets* | | | 616,295 | | | | 477,786 | | | | 29 | % | | | 629,105 | | | -2 | % |
| | | | | | | | | | |
| LOAN PORTFOLIO COMPOSITION: * | | 3/31/2010 | | 12/31/2009 | | % change | | 3/31/2009 | | % change |
| | | | | | | | | | |
| Commercial loans | | $ | 514,975 | | | $ | 539,147 | | | | -4 | % | | $ | 573,615 | | | -10 | % |
| Real estate loans | | | 1,617,967 | | | | 1,654,104 | | | | -2 | % | | | 1,491,480 | | | 8 | % |
| Consumer and other loans | | | 16,766 | | | | 18,035 | | | | -7 | % | | | 24,633 | | | -32 | % |
| Loans outstanding* | | | 2,149,708 | | | | 2,211,286 | | | | -3 | % | | | 2,089,728 | | | 3 | % |
| Unamortized deferred loan fees - net of costs | | | (2,215 | ) | | | (2,343 | ) | | | -5 | % | | | (1,500 | ) | | 48 | % |
| Loans*, net of deferred loan fees and costs | | | 2,147,493 | | | | 2,208,943 | | | | -3 | % | | | 2,088,228 | | | 3 | % |
| Allowance for loan losses | | | (63,995 | ) | | | (59,424 | ) | | | 8 | % | | | (50,504 | ) | | 27 | % |
| Loan receivable*, net | | $ | 2,083,498 | | | $ | 2,149,519 | | | | -3 | % | | $ | 2,037,724 | | | 2 | % |
| * The loan portfolio composition tables and net interest margin excludes the guaranteed portion of delinquent SBA loans for the amounts indicated at each period as these are 100% guaranteed by the SBA. | | $ | 14,771 | | | $ | 12,490 | | | | | $ | 20,151 | | | |
| | | | | | | | | | |
| REAL ESTATE LOANS BY PROPERTY TYPE: | | 3/31/2010 | | 12/31/2009 | | % change | | 3/31/2009 | | % change |
| Retail buildings | | $ | 381,892 | | | $ | 380,958 | | | | 0 | % | | $ | 381,222 | | | 0 | % |
| Hotels/motels | | | 311,801 | | | | 324,058 | | | | -4 | % | | | 301,389 | | | 3 | % |
| Gas stations/ car washes | | | 265,375 | | | | 266,986 | | | | -1 | % | | | 258,681 | | | 3 | % |
| Mixed-use facilities | | | 153,297 | | | | 157,136 | | | | -2 | % | | | 156,071 | | | -2 | % |
| Warehouses | | | 109,778 | | | | 111,543 | | | | -2 | % | | | 116,877 | | | -6 | % |
| Multifamily | | | 70,744 | | | | 75,587 | | | | -6 | % | | | 33,202 | | | 113 | % |
| Other | | | 325,080 | | | | 337,836 | | | | -4 | % | | | 244,038 | | | 33 | % |
| Total | | $ | 1,617,967 | | | $ | 1,654,104 | | | | -2 | % | | $ | 1,491,480 | | | 8 | % |
| | | | | | | | | | |
| DEPOSIT COMPOSITION | | 3/31/2010 | | 12/31/2009 | | % Change | | 3/31/2009 | | % Change |
| Non-interest-bearing demand deposits | | $ | 360,801 | | | $ | 330,489 | | | | 9 | % | | $ | 297,540 | | | 21 | % |
| Money market and other | | | 547,468 | | | | 524,188 | | | | 4 | % | | | 364,297 | | | 50 | % |
| Saving deposits | | | 136,821 | | | | 136,804 | | | | 0 | % | | | 113,614 | | | 20 | % |
| Time deposits of $100,000 or more | | | 714,952 | | | | 932,699 | | | | -23 | % | | | 590,342 | | | 21 | % |
| Other time deposits | | | 521,750 | | | | 510,010 | | | | 2 | % | | | 732,519 | | | -29 | % |
| Total deposit balances | | $ | 2,281,792 | | | $ | 2,434,190 | | | | -6 | % | | $ | 2,098,312 | | | 9 | % |
| | | | | | | | | | |
| DEPOSIT COMPOSITION (%) | | 3/31/2010 | | 12/31/2009 | | 3/31/2009 | | | | |
| Non-interest-bearing demand deposits | | | 15.8 | % | | | 13.6 | % | | | 14.2 | % | | | | |
| Money market and other | | | 24.0 | % | | | 21.5 | % | | | 17.4 | % | | | | |
| Saving deposits | | | 6.0 | % | | | 5.6 | % | | | 5.4 | % | | | | |
| Time deposits of $100,000 or more | | | 31.3 | % | | | 38.3 | % | | | 28.1 | % | | | | |
| Other time deposits | | | 22.9 | % | | | 21.0 | % | | | 34.9 | % | | | | |
| Total deposit balances | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| CAPITAL RATIOS | | 3/31/2010 | | 12/31/2009 | | 3/31/2009 | | | | |
| Total stockholders' equity | | $ | 363,821 | | | $ | 367,975 | | | $ | 289,685 | | | | | |
| Tier 1 risk-based capital ratio | | | 17.10 | % | | | 16.73 | % | | | 14.03 | % | | | | |
| Total risk-based capital ratio | | | 18.37 | % | | | 17.99 | % | | | 15.30 | % | | | | |
| Tier 1 leverage ratio | | | 12.49 | % | | | 12.36 | % | | | 11.95 | % | | | | |
| Book value per common share | | $ | 7.87 | | | $ | 7.99 | | | $ | 8.47 | | | | | |
| Tangible common equity per share2 | | $ | 7.78 | | | $ | 7.90 | | | $ | 8.32 | | | | | |
| Tangible common equity to tangible assets2 | | | 9.58 | % | | | 9.27 | % | | | 7.74 | % | | | | |
| | | | | | | | | | |
| 2 Tangible common equity to tangible assets is a non-GAAP financial measure that represents common equity less goodwill and other intangible assets, net divided by total assets less goodwill and other 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: |
| | | | | | |
| | 3/31/2010 | | 12/31/2009 | | 3/31/2009 |
| Total stockholders' equity | | $ | 363,821 | | | $ | 367,975 | | | $ | 289,685 | |
| Less: Preferred stock, net of discount | | | (63,497 | ) | | | (63,263 | ) | | | (62,566 | ) |
| Common stock warrant | | | (2,383 | ) | | | (2,383 | ) | | | (4,766 | ) |
| Goodwill and other intangible assets, net | | | (3,424 | ) | | | (3,551 | ) | | | (3,983 | ) |
| Tangible common equity | | $ | 294,517 | | | $ | 298,778 | | | $ | 218,370 | |
| | | | | | |
| Total assets | | $ | 3,079,020 | | | $ | 3,227,957 | | | $ | 2,825,537 | |
| Less: Goodwill and other intangible assets, net | | | (3,424 | ) | | | (3,551 | ) | | | (3,983 | ) |
| Tangible assets | | $ | 3,075,596 | | | $ | 3,224,406 | | | $ | 2,821,554 | |
| | | | | | |
| Common shares outstanding | | | 37,835,407 | | | | 37,824,007 | | | | 26,256,960 | |
| | | | | | |
| Tangible common equity to tangible assets | | | 9.58 | % | | | 9.27 | % | | | 7.74 | % |
| Tangible common equity per share | | $ | 7.78 | | | $ | 7.90 | | | $ | 8.32 | |
| | | | | | | | | | | | |
| | |
| | For the Three Months Ended |
| ALLOWANCE FOR LOAN LOSSES: | | 3/31/2010 | | 12/31/2009 | | 9/30/2009 | | 6/30/2009 | | 3/31/2009 |
| Balance at beginning of period | | $ | 59,424 | | | $ | 52,967 | | | $ | 50,339 | | | $ | 50,504 | | | $ | 43,419 | |
| Provision for loan losses | | | 25,407 | | | | 17,853 | | | | 8,500 | | | | 19,000 | | | | 15,670 | |
| Recoveries | | | 221 | | | | 155 | | | | 179 | | | | 251 | | | | 83 | |
| Charge offs | | | (21,057 | ) | | | (11,551 | ) | | | (6,051 | ) | | | (19,416 | ) | | | (8,668 | ) |
| Balance at end of period | | $ | 63,995 | | | $ | 59,424 | | | $ | 52,967 | | | $ | 50,339 | | | $ | 50,504 | |
| Net charge-off/average gross loans* (annualized) | | | 3.79 | % | | | 2.08 | % | | | 1.11 | % | | | 3.66 | % | | | 1.63 | % |
| | | | | | | | | | |
| | For the Three Months Ended, |
| NET CHARGED OFF LOANS BY TYPE | | 3/31/2010 | | 12/31/2009 | | 9/30/2009 | | 6/30/2009 | | 3/31/2009 |
| | | | | | | | | | |
| Real estate loans | | $ | 12,823 | | | $ | 7,065 | | | $ | 2,572 | | | $ | 12,410 | | | $ | 2,121 | |
| Commercial loans | | | 7,201 | | | | 4,236 | | | | 3,282 | | | | 6,608 | | | | 5,204 | |
| Consumer loans | | | 812 | | | | 95 | | | | 18 | | | | 147 | | | | 1,260 | |
| Total net charge-offs | | $ | 20,836 | | | $ | 11,396 | | | $ | 5,872 | | | $ | 19,165 | | | $ | 8,585 | |
| | | | | | | | | | |
| | | | | | | | | | |
| NON-PERFORMING ASSETS | | 3/31/2010 | | 12/31/2009 | | 9/30/2009 | | 6/30/2009 | | 3/31/2009 |
| Delinquent loans 90 days or more on non-accrual status* | | $ | 62,775 | | | $ | 51,674 | | | $ | 35,510 | | | $ | 30,850 | | | $ | 41,330 | |
| Delinquent loans 90 days or more on accrual status | | | 457 | | | | - | | | | - | | | | - | | | | 7 | |
| Total non-performing loans* | | | 63,232 | | | | 51,674 | | | | 35,510 | | | | 30,850 | | | | 41,337 | |
| Other real estate owned | | | 5,856 | | | | 2,044 | | | | 4,693 | | | | 3,805 | | | | 4,822 | |
| Restructured loans | | | 65,026 | | | | 64,341 | | | | 44,707 | | | | 37,026 | | | | 31,131 | |
| Total non-performing assets* | | $ | 134,114 | | | $ | 118,059 | | | $ | 84,910 | | | $ | 71,681 | | | $ | 77,290 | |
| Non-performing assets*/ total assets | | | 4.36 | % | | | 3.66 | % | | | 2.64 | % | | | 2.20 | % | | | 2.74 | % |
| Non-performing assets*/ gross loans* & OREO | | | 6.23 | % | | | 5.34 | % | | | 3.98 | % | | | 3.44 | % | | | 3.69 | % |
| Non-performing loans*/gross loans* | | | 2.94 | % | | | 2.34 | % | | | 1.67 | % | | | 1.48 | % | | | 1.98 | % |
| Allowance for loan losses/ gross loans* | | | 2.98 | % | | | 2.69 | % | | | 2.49 | % | | | 2.42 | % | | | 2.42 | % |
| Allowance for loan losses/ non-performing loans* | | | 101 | % | | | 115 | % | | | 149 | % | | | 163 | % | | | 122 | % |
| | | | | | | | | | |
| BREAKDOWN OF RESTRUCTURED LOANS BY TYPE: | | 3/31/2010 | | 12/31/2009 | | 9/30/2009 | | 6/30/2009 | | 3/31/2009 |
| Retail buildings | | $ | 8,976 | | | $ | 9,620 | | | $ | 4,811 | | | $ | 1,387 | | | $ | 847 | |
| Hotels/motels | | | 19,177 | | | | 16,647 | | | | 4,400 | | | | 5,325 | | | | 5,325 | |
| Gas stations/ car washes | | | 10,941 | | | | 20,006 | | | | 19,547 | | | | 18,931 | | | | 18,231 | |
| Mixed-use facilities | | | 3,355 | | | | 2,907 | | | | 373 | | | | 374 | | | | - | |
| Warehouses | | | 1,522 | | | | - | | | | 4,455 | | | | 4,455 | | | | - | |
| Multifamily | | | - | | | | 1,371 | | | | 1,371 | | | | - | | | | - | |
| Other3 | | | 21,055 | | | | 13,790 | | | | 9,750 | | | | 6,554 | | | | 6,728 | |
| Total | | $ | 65,026 | | | $ | 64,341 | | | $ | 44,707 | | | $ | 37,026 | | | $ | 31,131 | |
| 3 Includes commercial business and other loans | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| DELINQUENT LOANS BY DAYS PAST DUE | | 3/31/2010 | | 12/31/2009 | | 9/30/2009 | | 6/30/2009 | | 3/31/2009 |
| | | | | | | | | | |
| 30 - 59 days | | $ | 8,370 | | $ | 14,926 | | $ | 24,507 | | $ | 5,364 | | $ | 8,272 |
| 60 - 89 days | | | 3,978 | | | 2,877 | | | 7,931 | | | 6,593 | | | 838 |
| 90 days or more and accruing | | | 457 | | | - | | | - | | | - | | | 7 |
| Non-accrual | | | 62,775 | | | 51,674 | | | 35,510 | | | 30,850 | | | 41,330 |
| Total delinquent loans* | | $ | 75,580 | | $ | 69,477 | | $ | 67,948 | | $ | 42,807 | | $ | 50,447 |
| | | | | | | | | | |
| DELINQUENT LOANS BY TYPE4 | | 3/31/2010 | | 12/31/2009 | | 9/30/2009 | | 6/30/2009 | | 3/31/2009 |
| | | | | | | | | | |
| Real estate loans | | $ | 57,634 | | $ | 52,660 | | $ | 54,129 | | $ | 28,242 | | $ | 31,823 |
| Commercial loans | | | 17,107 | | | 15,303 | | | 13,241 | | | 14,041 | | | 18,076 |
| Consumer loans | | | 839 | | | 1,514 | | | 578 | | | 524 | | | 548 |
| Total delinquent loans* | | $ | 75,580 | | $ | 69,477 | | $ | 67,948 | | $ | 42,807 | | $ | 50,447 |
| 4Delinquent over 30 days, including non-accrual loans | | | | | | | | | | |
| | | | | | | | | | |
| NON-ACCRUAL LOANS BY TYPE | | 3/31/2010 | | 12/31/2009 | | 9/30/2009 | | 6/30/2009 | | 3/31/2009 |
| | | | | | | | | | |
| Real estate loans | | $ | 49,393 | | $ | 40,354 | | $ | 25,696 | | $ | 20,515 | | $ | 26,153 |
| Commercial loans | | | 13,103 | | | 10,275 | | | 9,521 | | | 10,072 | | | 14,876 |
| Consumer loans | | | 279 | | | 1,045 | | | 293 | | | 263 | | | 301 |
| Total non-accrual loans* | | $ | 62,775 | | $ | 51,674 | | $ | 35,510 | | $ | 30,850 | | $ | 41,330 |
| | | | | | | | | | |
| WATCH LIST LOANS | | 3/31/2010 | | 12/31/2009 | | 9/30/2009 | | 6/30/2009 | | 3/31/2009 |
| Special mention | | $ | 43,647 | | $ | 42,671 | | $ | 30,762 | | $ | 53,277 | | $ | 68,388 |
| Substandard | | | 169,149 | | | 153,535 | | | 110,669 | | | 112,641 | | | 98,412 |
| Doubtful | | | 2,519 | | | 3,655 | | | 2,767 | | | 4,237 | | | 7,288 |
| Loss | | | - | | | - | | | - | | | - | | | 8 |
| Total watch list loans | | $ | 215,315 | | $ | 199,861 | | $ | 144,198 | | $ | 170,155 | | $ | 174,096 |
| | | | | | | | | | |
| * The loan portfolio composition tables and net interest margin excludes the guaranteed portion of delinquent SBA loans for the amounts indicated at each period as these are 100% guaranteed by the SBA. |
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CONTACT:
Investors and Financial Media:
Financial Profiles, Inc
Tony Rossi, 310-478-2700 x13
trossi@finprofiles.com
