Exhibit 99.1
Nara Bancorp Reports Financial Results for Third Quarter 2011
Q3 2011 Summary:
- Net income of $0.23 per diluted common share vs. $0.14 per diluted common share in the prior quarter
- Gross loans receivable increased $65.7 million during the quarter
- Net interest margin improved 13 basis points to 4.29% from the prior quarter
- Net charge-offs to average gross loans (annualized) declined to 0.56% from 2.50% in the prior quarter
LOS ANGELES--(BUSINESS WIRE)--October 24, 2011--Nara Bancorp, Inc. (the “Company”) (NASDAQ: NARA), the holding company of Nara Bank (the “Bank”), reported net income available to common stockholders of $8.7 million, or $0.23 per diluted common share, for the third quarter 2011, compared to net income available to common stockholders of $4.0 million, or $0.11 per diluted common share, for the third quarter 2010, and net income available to common stockholders of $5.2 million, or $0.14 per diluted common share, for the second quarter 2011.
Alvin Kang, President and Chief Executive Officer, said, “Our third quarter results represent continued improvement in our financial performance and the highest level of quarterly net income we have generated in four years. We are seeing solid balance sheet growth, due in part to our successful efforts to attract more commercial loan and deposit relationships. We are also seeing more stability in our loan portfolio and a reduction in our credit costs as a result of the steady progress we have made in improving our asset quality over the past several quarters. We are executing well in all areas of the Company and we have momentum as we look ahead to receiving regulatory approval and completing our merger with Center Financial Corp. We would expect the merger to further strengthen our position in the marketplace.”
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Financial Highlights |
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| | 2011 Third | | 2010 Third | | 2011 Second |
| | | Quarter | | Quarter | | Quarter |
| | | (Dollars in thousands) |
| Net income | | $ | 9,815 | | | $ | 5,100 | | | $ | 6,318 | |
| Net income available to common stockholders | | $ | 8,738 | | | $ | 4,027 | | | $ | 5,243 | |
| Diluted earnings per share | | $ | 0.23 | | | $ | 0.11 | | | $ | 0.14 | |
| Net interest income | | $ | 31,053 | | | $ | 27,610 | | | $ | 29,331 | |
| Net interest margin | | | 4.29 | % | | | 3.85 | % | | | 4.16 | % |
| Non-interest income | | $ | 4,258 | | | $ | 7,339 | | | $ | 7,684 | |
| Non-interest expense | | $ | 16,817 | | | $ | 15,693 | | | $ | 16,886 | |
| Net loans receivable | | $ | 2,208,119 | | | $ | 2,098,164 | | | $ | 2,142,750 | |
| Deposits | | $ | 2,267,196 | | | $ | 2,202,656 | | | $ | 2,232,180 | |
| Non-performing loans (excludes accruing restructured loans) * | | $ | 27,790 | | | $ | 50,521 | | | $ | 35,385 | |
| Non-performing loans (includes accruing restructured loans) * | | $ | 51,333 | | | $ | 84,912 | | | $ | 51,172 | |
| ALLL to gross loans * | | | 2.66 | % | | | 2.97 | % | | | 2.73 | % |
| ALLL to non-performing loans (excludes accruing restructured loans) * | | | 216 | % | | | 126 | % | | | 169 | % |
| ALLL to non-performing loans (includes accruing restructured loans) * | | | 117 | % | | | 75 | % | | | 117 | % |
| ALLL to non-performing assets * | | | 107 | % | | | 72 | % | | | 107 | % |
| Provision for loan losses | | $ | 3,483 | | | $ | 11,100 | | | $ | 10,047 | |
| Net charge-offs | | $ | 3,170 | | | $ | 10,396 | | | $ | 13,691 | |
| Efficiency ratio | | | 47.63 | % | | | 44.90 | % | | | 45.62 | % |
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| * Excludes the guaranteed portion of delinquent SBA loans totaling $10.5 million, $14.3 million and $12.4 million at third quarter 2011, third quarter 2010 and second quarter 2011, respectively. |
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Operating Results for Third Quarter 2011
Net Interest Income and Net Interest Margin. Third quarter 2011 net interest income before provision for loan losses was $31.1 million, an increase of 12% from third quarter 2010. The increase in net interest income was due primarily to an improvement in the net interest margin.
Third quarter 2011 net interest margin (net interest income divided by average interest-earning assets) increased 44 basis points to 4.29% from 3.85% for third quarter 2010. The improvement in the net interest margin was primarily due to lower rates paid on time deposits and interest-bearing demand deposits. The cost of time deposits decreased to 1.11% for third quarter 2011 from 1.25% for third quarter 2010. The cost of interest-bearing demand deposits also decreased to 0.84% for third quarter 2011 from 1.11% for third quarter 2010.
The weighted average yield on the loan portfolio for third quarter 2011 was 6.16%, essentially unchanged from the 6.15% in the same period last year. At September 30, 2011, fixed rate loans were 44% of the loan portfolio, compared to 49% at September 30, 2010, reflecting the emphasis on variable rate C&I lending. The weighted average yield on the variable rate and fixed rate loan portfolios (excluding loan discount accretion) at September 30, 2011 was 4.96% and 6.94%, respectively, compared to 4.79% and 7.24% at September 30, 2010.
The weighted average yield on securities available-for-sale for third quarter 2011 increased slightly to 3.16% from 3.12% for the same period 2010.
The weighted average cost of deposits for third quarter 2011 decreased 20 basis points to 0.88% from 1.08% for the same period last year, driven primarily by the decrease in the cost of time deposits and interest-bearing demand deposits and the increase in the average balance of non-interest bearing demand deposits.
The weighted average cost of FHLB advances for third quarter 2011 decreased 22 basis points to 3.23% for third quarter 2011, compared to 3.45% for third quarter 2010, as maturing advances with higher rates were paid in full or refinanced at lower rates.
Following are the weighted average rate data on a spot rate basis at September 30, 2011 and 2010:
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| | | September 30, |
| | | 2011 | | 2010 |
| Weighted average loan portfolio yield (excluding discounts) | | 5.82 | % | | 5.99 | % |
| Weighted average available-for-sale securities portfolio yield | | 3.33 | % | | 3.16 | % |
| Weighted average cost of deposits | | 0.82 | % | | 1.06 | % |
| Weighted average cost of total interest-bearing deposits | | 1.03 | % | | 1.27 | % |
| Weighted average cost of FHLB advances | | 3.19 | % | | 3.42 | % |
| Net interest margin | | 4.10 | % | | 3.78 | % |
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Third quarter 2011 net interest income before provision for loan losses increased $1.7 million, or 6%, from second quarter 2011. The increase was attributable to an improvement in the net interest margin, which increased 13 basis points. The increase in net interest margin resulted primarily from an increase of nine basis points in the yield on loans and a reduction of five basis points in the weighted average cost of interest-bearing liabilities. The increase in the yield on loans was primarily due to a quarter to quarter change in adjustments to non-accrual loan income from $(237) thousand in the second quarter to $154 thousand in the third quarter.
Non-interest Income. Third quarter 2011 non-interest income was $4.3 million, a decrease of $3.1 million, or 42%, compared to third quarter 2010. The decrease was primarily due to a decrease of $3.8 million in net gains on sales of loans. In third quarter 2010, problem assets that were recorded at estimated fair value, less selling costs, at June 30, 2010 were sold at a net gain of $3.7 million.
Non-interest income decreased $3.4 million, or 45%, from second quarter 2011. The decrease was primarily due to a decrease of $3.5 million in net gains on sale of SBA loans. Net gains on sale of SBA loans were $823 thousand for third quarter 2011, a decrease of $3.5 million from $4.4 million for second quarter 2011. Of the net gains of $4.4 million in the second quarter, $1.5 million was due to recognition of deferred gains from sales of $15.3 million in SBA loans during first quarter 2011, and $2.9 million was from sales of $31.7 million in SBA loans during second quarter of 2011. During third quarter 2011, $9.6 million of SBA loans were sold.
Non-interest Expense. Third quarter 2011 non-interest expense was $16.8 million, an increase of $1.1 million, or 7%, from $15.7 million for the same period last year. The increase was primarily due to increases in salaries and benefits expense and merger-related expenses, partially offset by a decrease in credit-related expenses.
Salaries and benefits expense increased $1.4 million, or 22%, to $7.7 million for third quarter 2011, compared to $6.3 million for the same quarter of 2010. The increase is due to an increase in the number of full-time equivalent (FTE) employees, which increased to 377 at September 30, 2011 from 364 at September 30, 2010, an increase of $541 thousand in vacation and bonus accrual, an increase of $179 thousand in group insurance expense due to the increase in premium costs, and an increase of $146 thousand in 401(k) plan contributions, as the Company reinstated the company matching program effective January 1, 2011. The year-over-year increase in FTE employees was due to increases in our staffing in our Eastern Region lending unit, Information Technology and loan servicing unit.
Merger-related expenses of $574 thousand were recorded during third quarter 2011 as a result of the pending merger with Center Financial Corporation. Credit-related expense decreased $616 thousand, or 42%, to $867 thousand for third quarter 2011, compared to $1.5 million for the same period last year. The decrease was primarily due to a lower need for collection activities in third quarter 2011.
Income Taxes. The effective income tax provision rate was 35%, 37% and 37% for third quarter 2011 and 2010 and second quarter 2011, respectively. The lower provision rate for the third quarter 2011 was primarily due to an increase in the federal and state tax credits for 2011 versus 2010.
Balance Sheet Summary
Gross loans receivable increased $65.7 million to $2.27 billion at September 30, 2011 from $2.20 billion at June 30, 2011. New loan production was $115.3 million during third quarter 2011, compared to $116.1 million during second quarter 2011, and $97.9 million during third quarter 2010. Total loan pay-offs, pay-downs, amortization and other adjustments totaled $49.9 million during third quarter 2011, compared to $67.8 million during second quarter 2011 and $62.8 million during third quarter 2010.
Total deposits increased $35.0 million to $2.27 billion at September 30, 2011 from $2.23 billion at June 30, 2011. The increase was driven by $22.2 million and $16.4 million of growth in non-interest bearing demand deposits and time deposits, respectively.
Credit Quality
The Company recorded a provision for loan losses of $3.5 million in third quarter 2011, compared to $11.1 million for the same period of the prior year and $10.0 million in second quarter 2011. The reduction in the provision for loan losses for third quarter 2011 compared to second quarter 2011 reflects a decrease in net charge offs, which decreased to $3.2 million for third quarter from $10.4 million for the same period of the prior year and $13.7 million for second quarter 2011, and a decline in the historical loss factors, as larger charge-off quarters are beginning to run-off or be weighted less in the calculation.
Total Watchlist loans, defined as Special Mention and Classified loans, were $141.0 million at September 30, 2011, a slight increase from $137.1 million at June 30, 2011. Special Mention loans increased $16.2 million, and classified loans decreased $12.3 million. The increase in Special Mention loans was due primarily to four relationships aggregating $15.7 million. Although all of the loans continue to perform, they were placed in the Special Mention category while the Company waits for the borrowers to provide more current financial statements.
Total delinquent loans, 30 to 89 days past due, were $11.0 million at September 30, 2011, compared to $3.3 million at June 30, 2011. The increase in early stage delinquencies was due primarily to a single CRE relationship totaling $7.7 million.
Non-performing loans (loans past due 90 days or more and non-accrual loans) at September 30, 2011 declined to $27.8 million, or 1.23% of total loans, compared to $35.4 million, or 1.62% of total loans, at June 30, 2011. The decrease was primarily due to $5.5 million in non-performing loans being sold or transferred to Loans-held-for-Sale, and the return of one $2.2 million C&I loan to accrual status based on sustained performance and improved financial trends. Non-Performing loans, including accruing restructured loans, were $51.3 million, or 2.27 % of total loans, compared to $51.2 million, or 2.34% of total loans, at June 30, 2011.
Non-performing assets at September 30, 2011 were $56.2 million, or 1.86% of total assets, compared to $55.6 million, or 1.87% of total assets, at June 30, 2011.
Net loan charge-offs during the third quarter 2011 were $3.2 million, or 0.56% of average loans on an annualized basis, compared to $13.7 million, or 2.50%, during the second quarter 2011. Gross charge-offs of $4.0 million resulted primarily from $3 million in loans either partially or fully charged off and $833 thousand related to individual note sales during the quarter.
The allowance for loan losses at September 30, 2011 was $60.0 million, or 2.66% of gross loans receivable (excluding the guaranteed portion of delinquent SBA loans and loans held for sale), compared to $59.7 million, or 2.73%, at June 30, 2011. The coverage ratio of the allowance for loan losses to non-performing loans (excluding accruing restructured loans) increased to 216% at September 30, 2011, compared to 169% at June 30, 2011.
Impaired loans (defined as loans for which it is probable that not all principal and interest payments due will be collectible according to contractual terms) at September 30, 2011 were $75.6 million compared to $76.2 million at June 30, 2011.
Specific reserves for impaired loans were $14.6 million, or 19.30% of the aggregate impaired loan amount at September 30, 2011, compared to $13.2 million, or 17.32%, at June 30, 2011. Excluding specific reserves for impaired loans, the allowance coverage on the remaining loan portfolio was 2.08% at September 30, 2011, compared to 2.20% at June 30, 2011. This decrease is due primarily to reduced general reserve requirements resulting from decreasing historical loss factors and slightly offset by increased total loan balances.
Capital
At September 30, 2011, the Company continued to be in excess of the regulatory capital requirements to be classified as a “well-capitalized” institution. The Leverage Ratio was 13.50% at September 30, 2011, compared to 13.32% at June 30, 2011. The Tier 1 Risk-based Ratio was 16.71% at September 30, 2011, compared to 16.42% at June 30, 2011. The Total Risk-based Ratio was 17.98% at September 30, 2011, compared to 17.69% at June 30, 2011.
At September 30, 2011, tangible common equity represented 10.40% of tangible assets, compared to 10.21% of tangible assets at June 30, 2011. Tangible common equity per share was $8.23 at September 30, 2011, compared to $7.94 at June 30, 2011.
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. 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 third quarter 2011 financial results will be held tomorrow, October 25, 2011, at 9:00 a.m. Pacific / 12:00 p.m. Eastern. Interested participants and investors may access the conference call by dialing 877-941-2332 (domestic) or 480-629-9866 (international), conference ID# 4479966. 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 November 1, 2011, conference ID# 4479966.
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 23 branches and one 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, Except per Share Data) |
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| Assets | | 9/30/2011 | | 6/30/2011 | | % change | | 12/31/2010 | | % change | | 9/30/2010 | | % change |
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| Cash and due from banks | | $ | 175,827 | | | $ | 171,129 | | | 3 | % | | $ | 172,331 | | | 2 | % | | $ | 234,161 | | | -25 | % |
| Securities available for sale, at fair value | | | 455,789 | | | | 472,420 | | | -4 | % | | | 528,262 | | | -14 | % | | | 479,779 | | | -5 | % |
| Federal Home Loan Bank and Federal Reserve Bank stock | | | 21,933 | | | | 22,657 | | | -3 | % | | | 24,084 | | | -9 | % | | | 24,817 | | | -12 | % |
| Loans held for sale, at the lower of cost or fair value | | | 31,342 | | | | 27,120 | | | 16 | % | | | 26,927 | | | 16 | % | | | 12,901 | | | 143 | % |
| Loans receivable | | | 2,268,128 | | | | 2,202,446 | | | 3 | % | | | 2,147,745 | | | 6 | % | | | 2,161,856 | | | 5 | % |
| Allowance for loan losses | | | (60,009 | ) | | | (59,696 | ) | | -1 | % | | | (62,320 | ) | | 4 | % | | | (63,692 | ) | | 6 | % |
| Net loans receivable | | | 2,208,119 | | | | 2,142,750 | | | 3 | % | | | 2,085,425 | | | 6 | % | | | 2,098,164 | | | 5 | % |
| Accrued interest receivable | | | 8,257 | | | | 8,069 | | | 2 | % | | | 8,648 | | | -5 | % | | | 8,606 | | | -4 | % |
| Premises and equipment, net | | | 9,408 | | | | 9,938 | | | -5 | % | | | 10,915 | | | -14 | % | | | 11,147 | | | -16 | % |
| Bank owned life insurance | | | 24,677 | | | | 24,489 | | | 1 | % | | | 24,117 | | | 2 | % | | | 23,933 | | | 3 | % |
| Goodwill | | | 2,509 | | | | 2,509 | | | 0 | % | | | 2,509 | | | 0 | % | | | 2,509 | | | 0 | % |
| Other intangible assets, net | | | 302 | | | | 379 | | | -20 | % | | | 534 | | | -43 | % | | | 661 | | | -54 | % |
| Other assets | | | 77,964 | | | | 85,828 | | | -9 | % | | | 79,544 | | | -2 | % | | | 88,298 | | | -12 | % |
| Total assets | | $ | 3,016,127 | | | $ | 2,967,288 | | | 2 | % | | $ | 2,963,296 | | | 2 | % | | $ | 2,984,976 | | | 1 | % |
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| Liabilities | | | | | | | | | | | | | | |
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| Deposits | | $ | 2,267,196 | | | $ | 2,232,180 | | | 2 | % | | $ | 2,176,114 | | | 4 | % | | $ | 2,202,656 | | | 3 | % |
| Borrowings from Federal Home Loan Bank | | | 300,000 | | | | 300,000 | | | 0 | % | | | 350,000 | | | -14 | % | | | 350,000 | | | -14 | % |
| Subordinated debentures | | | 39,268 | | | | 39,268 | | | 0 | % | | | 39,268 | | | 0 | % | | | 39,268 | | | 0 | % |
| Other borrowings | | | 701 | | | | - | | | 100 | % | | | 11,758 | | | -94 | % | | | 8,129 | | | -91 | % |
| Accrued interest payable | | | 3,752 | | | | 3,382 | | | 11 | % | | | 4,830 | | | -22 | % | | | 4,842 | | | -23 | % |
| Other liabilities | | | 21,595 | | | | 19,919 | | | 8 | % | | | 22,763 | | | -5 | % | | | 23,979 | | | -10 | % |
| Total liabilities | | | 2,632,512 | | | | 2,594,749 | | | 1 | % | | | 2,604,733 | | | 1 | % | | | 2,628,874 | | | 0 | % |
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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 September 30, 2011, June 30, 2011, December 31, 2010 and September 30, 2010 | | | 67,000 | | | | 67,000 | | | 0 | % | | | 67,000 | | | 0 | % | | | 67,000 | | | 0 | % |
| Preferred stock discount | | | (2,082 | ) | | | (2,321 | ) | | 10 | % | | | (2,797 | ) | | 26 | % | | | (3,033 | ) | | 31 | % |
| Common stock, $0.001 par value; authorized, 150,000,000 shares at September 30, 2011 and 100,000,000 shares at June 30, 2011, December 31, 2010 and September 30, 2010, respectively; issued and outstanding, 38,095,260, 38,097,327, 37,983,027 and 37,956,527 shares at September 30, 2011, June 30, 2011, December 31, 2010 and September 30, 2010, respectively | | | 38 | | | | 38 | | | 0 | % | | | 38 | | | 0 | % | | | 38 | | | 0 | % |
| Capital surplus | | | 172,065 | | | | 172,066 | | | 0 | % | | | 171,364 | | | 0 | % | | | 171,111 | | | 1 | % |
| Retained earnings | | | 140,013 | | | | 131,275 | | | 7 | % | | | 120,361 | | | 16 | % | | | 115,365 | | | 21 | % |
| Accumulated other comprehensive income, net | | | 6,581 | | | | 4,481 | | | 47 | % | | | 2,597 | | | -153 | % | | | 5,621 | | | -17 | % |
| Total stockholders' equity | | | 383,615 | | | | 372,539 | | | 3 | % | | | 358,563 | | | 7 | % | | | 356,102 | | | 8 | % |
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| Total liabilities and stockholders' equity | | $ | 3,016,127 | | | $ | 2,967,288 | | | 2 | % | | $ | 2,963,296 | | | 2 | % | | $ | 2,984,976 | | | 1 | % |
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| Nara Bancorp, Inc. |
| Consolidated Statements of Income (Loss) |
| Unaudited (Dollars in Thousands, Except for Per Share Data) |
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| | Three Months Ended | | Nine Months Ended, |
| | 9/30/2011 | | 9/30/2010 | | % change | | 6/30/2011 | | % change | | 9/30/2011 | | 9/30/2010 | | % change |
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| Interest income: | | | | | | | | | | | | | | | | |
| Interest and fees on loans | | $ | 34,902 | | | $ | 33,444 | | | | 4 | % | | $ | 33,150 | | | | 5 | % | | $ | 101,137 | | | $ | 100,302 | | | 1 | % |
| Interest on securities | | | 3,843 | | | | 3,438 | | | | 12 | % | | | 3,965 | | | | -3 | % | | | 11,738 | | | | 11,410 | | | 3 | % |
| Interest on federal funds sold and other investments | | | 182 | | | | 248 | | | | -27 | % | | | 179 | | | | 2 | % | | | 540 | | | | 672 | | | -20 | % |
| Total interest income | | | 38,927 | | | | 37,130 | | | | 5 | % | | | 37,294 | | | | 4 | % | | | 113,415 | | | | 112,384 | | | 1 | % |
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| Interest expense: | | | | | | | | | | | | | | | | |
| Interest on deposits | | | 4,977 | | | | 5,968 | | | | -17 | % | | | 5,090 | | | | -2 | % | | | 15,198 | | | | 22,194 | | | -32 | % |
| Interest on other borrowings | | | 2,897 | | | | 3,552 | | | | -18 | % | | | 2,873 | | | | 1 | % | | | 8,950 | | | | 10,529 | | | -15 | % |
| Total interest expense | | | 7,874 | | | | 9,520 | | | | -17 | % | | | 7,963 | | | | -1 | % | | | 24,148 | | | | 32,723 | | | -26 | % |
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| Net interest income before provision for loan losses | | | 31,053 | | | | 27,610 | | | | 12 | % | | | 29,331 | | | | 6 | % | | | 89,267 | | | | 79,661 | | | 12 | % |
| Provision for loan losses | | | 3,483 | | | | 11,100 | | | | -69 | % | | | 10,047 | | | | -65 | % | | | 18,792 | | | | 78,830 | | | -76 | % |
| Net interest income after provision for loan losses | | | 27,570 | | | | 16,510 | | | | 67 | % | | | 19,284 | | | | 43 | % | | | 70,475 | | | | 831 | | | 8381 | % |
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| Non-interest income: | | | | | | | | | | | | | | | | |
| Service fees on deposit accounts | | | 1,352 | | | | 1,637 | | | | -17 | % | | | 1,413 | | | | -4 | % | | | 4,262 | | | | 4,828 | | | -12 | % |
| Net gains on sales of SBA loans | | | 823 | | | | 308 | | | | 167 | % | | | 4,354 | | | | -81 | % | | | 6,337 | | | | 680 | | | 832 | % |
| Net gains (losses) on sales of other loans | | | (30 | ) | | | 3,725 | | | | N/A | | | | - | | | | N/A | | | | (30 | ) | | | 4,375 | | | N/A | |
| Net gains on sales of securities available-for-sale | | | 64 | | | | 4 | | | | 1500 | % | | | 6 | | | | 967 | % | | | 70 | | | | 6,396 | | | -99 | % |
| Net valuation gains (losses) on interest swaps and caps | | | (3 | ) | | | (226 | ) | | | 99 | % | | | (106 | ) | | | 97 | % | | | (120 | ) | | | (952 | ) | | 87 | % |
| Net gains (losses) on sales of OREO | | | 108 | | | | (62 | ) | | | 274 | % | | | 25 | | | | 332 | % | | | 135 | | | | (614 | ) | | 122 | % |
| Other income and fees | | | 1,944 | | | | 1,953 | | | | 0 | % | | | 1,992 | | | | -2 | % | | | 5,798 | | | | 5,470 | | | 6 | % |
| Total non-interest income | | | 4,258 | | | | 7,339 | | | | -42 | % | | | 7,684 | | | | -45 | % | | | 16,452 | | | | 20,183 | | | -18 | % |
| | | | | | | | | | | | | | | | |
| Non-interest expense: | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 7,657 | | | | 6,258 | | | | 22 | % | | | 7,625 | | | | 0 | % | | | 22,436 | | | | 18,065 | | | 24 | % |
| Occupancy | | | 2,480 | | | | 2,470 | | | | 0 | % | | | 2,445 | | | | 1 | % | | | 7,362 | | | | 7,321 | | | 1 | % |
| Furniture and equipment | | | 984 | | | | 952 | | | | 3 | % | | | 934 | | | | 5 | % | | | 2,853 | | | | 2,614 | | | 9 | % |
| Advertising and marketing | | | 354 | | | | 527 | | | | -33 | % | | | 594 | | | | -40 | % | | | 1,527 | | | | 1,598 | | | -4 | % |
| Data processing and communications | | | 813 | | | | 951 | | | | -15 | % | | | 923 | | | | -12 | % | | | 2,719 | | | | 2,935 | | | -7 | % |
| Professional fees | | | 612 | | | | 627 | | | | -2 | % | | | 769 | | | | -20 | % | | | 2,090 | | | | 1,848 | | | 13 | % |
| FDIC assessment | | | 983 | | | | 1,171 | | | | -16 | % | | | 877 | | | | 12 | % | | | 3,149 | | | | 3,729 | | | -16 | % |
| Merger-related expenses | | | 574 | | | | - | | | | 100 | % | | | 380 | | | | 51 | % | | | 1,465 | | | | - | | | 100 | % |
| Other | | | 2,360 | | | | 2,737 | | | | -14 | % | | | 2,339 | | | | 1 | % | | | 6,797 | | | | 7,734 | | | -12 | % |
| Total non-interest expense | | | 16,817 | | | | 15,693 | | | | 7 | % | | | 16,886 | | | | 0 | % | | | 50,398 | | | | 45,844 | | | 10 | % |
| Income (loss) before income taxes | | | 15,011 | | | | 8,156 | | | | 84 | % | | | 10,082 | | | | 49 | % | | | 36,529 | | | | (24,830 | ) | | N/A | |
| Income tax provision (benefit) | | | 5,196 | | | | 3,056 | | | | 70 | % | | | 3,764 | | | | 38 | % | | | 13,650 | | | | (11,521 | ) | | N/A | |
| Net income (loss) | | $ | 9,815 | | | $ | 5,100 | | | | 92 | % | | $ | 6,318 | | | | 55 | % | | | 22,879 | | | | (13,309 | ) | | N/A | |
| Dividends and discount accretion on preferred stock | | $ | (1,077 | ) | | $ | (1,073 | ) | | | 0 | % | | $ | (1,075 | ) | | | 0 | % | | | (3,227 | ) | | | (3,217 | ) | | 0 | % |
| Net income (loss) available to common stockholders | | $ | 8,738 | | | $ | 4,027 | | | | 117 | % | | $ | 5,243 | | | | 67 | % | | $ | 19,652 | | | $ | (16,526 | ) | | N/A | |
| | | | | | | | | | | | | | | | |
| Earnings (Loss) Per Common Share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.23 | | | $ | 0.11 | | | | | $ | 0.14 | | | | | $ | 0.52 | | | $ | (0.44 | ) | | |
| Diluted | | $ | 0.23 | | | $ | 0.11 | | | | | $ | 0.14 | | | | | $ | 0.52 | | | $ | (0.44 | ) | | |
| | | | | | | | | | | | | | | | |
| Average Shares Outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 38,097,327 | | | | 37,956,527 | | | | | | 38,047,371 | | | | | | 38,044,350 | | | | 37,902,809 | | | |
| Diluted | | | 38,112,908 | | | | 38,004,768 | | | | | | 38,082,023 | | | | | | 38,078,932 | | | | 37,902,809 | | | |
| | | | | | | | | | | | | | | | |
| | Three months ended | | Nine Months Ended, | | |
| | 9/30/2011 | | 6/30/2011 | | 3/31/2011 | | 12/31/2010 | | 9/30/2010 | | 9/30/2011 | | 9/30/2010 | | |
| | | | | | | | | | | | | | | | |
| Net interest income | | $ | 31,053 | | | $ | 29,331 | | | $ | 28,883 | | | $ | 28,723 | | | $ | 27,610 | | | $ | 89,267 | | | $ | 79,661 | | | |
| Non-interest income | | | 4,258 | | | | 7,684 | | | | 4,510 | | | | 4,298 | | | | 7,339 | | | | 16,452 | | | | 20,183 | | | |
| Non-interest expense | | | 16,817 | | | | 16,886 | | | | 16,695 | | | | 17,530 | | | | 15,693 | | | | 50,398 | | | | 45,844 | | | |
| Pre Tax - Pre Provision income | | | 18,494 | | | | 20,129 | | | | 16,698 | | | | 15,491 | | | | 19,256 | | | | 55,321 | | | | 54,000 | | | |
| Provision for loan losses | | | 3,483 | | | | 10,047 | | | | 5,262 | | | | 5,800 | | | | 11,100 | | | | 18,792 | | | | 78,830 | | | |
| Income (loss) before income taxes | | $ | 15,011 | | | $ | 10,082 | | | $ | 11,436 | | | $ | 9,691 | | | $ | 8,156 | | | $ | 36,529 | | | $ | (24,830 | ) | | |
| | | | | | | | | | | | | | | | |
| PTPP to average assets (annualized) | | | 2.48 | % | | | 2.75 | % | | | 2.27 | % | | | 2.07 | % | | | 2.60 | % | | | 2.50 | % | | | 2.39 | % | | |
| |
| |
| Nara Bancorp, Inc. |
| Supplemental Data |
| Unaudited (Dollars in Thousands, Except for Per Share Data) |
| |
| | (Annualized) | | | | (Annualized) | |
| | At or for the Three Months Ended | | | | At or for the Nine Months Ended | |
| Profitability measures: | | 9/30/2011 | | 9/30/2010 | | 6/30/2011 | | | | | | 9/30/2011 | | | 9/30/2010 | | | | |
| ROA 1 | | | 1.31 | % | | | 0.69 | % | | 0.86 | % | | | | | | 1.03 | % | | | -0.59 | % | | | | |
| ROE 1 | | | 10.40 | % | | | 5.72 | % | | 6.84 | % | | | | | | 8.24 | % | | | -4.86 | % | | | | |
| Net interest margin4 | | | 4.29 | % | | | 3.85 | % | | 4.16 | % | | | | | | 4.20 | % | | | 3.68 | % | | | | |
| Efficiency ratio | | | 47.63 | % | | | 44.90 | % | | 45.62 | % | | | | | | 47.67 | % | | | 45.92 | % | | | | |
| | | | | | | | | | | | | | | | | | |
| 1 based on net income before effect of dividends and discount accretion on preferred stock |
| |
| | Three Months Ended | | Three Months Ended | | Three Months Ended |
| | 9/30/2011 | | 9/30/2010 | | 6/30/2011 |
| | | | | | | | | | | | | | | | | | |
| | | | 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) | |
| INTEREST EARNING ASSETS: | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Gross loans4, includes loans held for sale | | $ | 2,248,544 | | | $ | 34,902 | | | 6.16 | % | | $ | 2,158,073 | | $ | 33,444 | | | 6.15 | % | | $ | 2,190,436 | | | $ | 33,150 | | | 6.07 | % |
| Securities available for sale | | | 486,009 | | | | 3,843 | | | 3.16 | % | | | 441,298 | | | 3,438 | | | 3.12 | % | | | 501,298 | | | | 3,965 | | | 3.16 | % |
| FRB and FHLB stock and other investments | | | 142,306 | | | | 182 | | | 0.51 | % | | | 248,417 | | | 248 | | | 0.40 | % | | | 132,957 | | | | 179 | | | 0.54 | % |
| Federal funds sold | | | - | | | | - | | | N/A | | | | - | | | - | | | N/A | | | | - | | | | - | | | N/A | |
| Total interest earning assets4 | | $ | 2,876,859 | | | $ | 38,927 | | | 5.37 | % | | $ | 2,847,788 | | $ | 37,130 | | | 5.18 | % | | $ | 2,824,691 | | | $ | 37,294 | | | 5.29 | % |
| | | | | | | | | | | | | | | | | |
| INTEREST BEARING LIABILITIES: | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | |
| Demand, interest-bearing | | $ | 701,109 | | | $ | 1,490 | | | 0.84 | % | | $ | 637,814 | | $ | 1,782 | | | 1.11 | % | | $ | 710,948 | | | $ | 1,545 | | | 0.87 | % |
| Savings | | | 126,231 | | | | 764 | | | 2.40 | % | | | 137,278 | | | 851 | | | 2.46 | % | | | 126,238 | | | | 729 | | | 2.32 | % |
| Time deposits: | | | | | | | | | | | | | | | | | | |
| $100,000 or more | | | 363,155 | | | | 351 | | | 0.38 | % | | | 364,199 | | | 572 | | | 0.62 | % | | | 315,278 | | | | 381 | | | 0.49 | % |
| Other | | | 607,193 | | | | 2,372 | | | 1.55 | % | | | 698,201 | | | 2,763 | | | 1.57 | % | | | 623,361 | | | | 2,435 | | | 1.57 | % |
| Total time deposits | | | 970,348 | | | | 2,723 | | | 1.11 | % | | | 1,062,400 | | | 3,335 | | | 1.25 | % | | | 938,639 | | | | 2,816 | | | 1.20 | % |
| Total interest bearing deposits | | | 1,797,688 | | | | 4,977 | | | 1.10 | % | | | 1,837,492 | | | 5,968 | | | 1.29 | % | | | 1,775,825 | | | | 5,090 | | | 1.15 | % |
| FHLB advances | | | 300,000 | | | | 2,438 | | | 3.23 | % | | | 350,000 | | | 3,045 | | | 3.45 | % | | | 300,000 | | | | 2,412 | | | 3.23 | % |
| Other borrowings | | | 37,816 | | | | 459 | | | 4.75 | % | | | 40,199 | | | 507 | | | 4.93 | % | | | 42,624 | | | | 461 | | | 4.27 | % |
| Total interest bearing liabilities | | | 2,135,504 | | | $ | 7,874 | | | 1.46 | % | | | 2,227,691 | | $ | 9,520 | | | 1.69 | % | | | 2,118,449 | | | $ | 7,963 | | | 1.51 | % |
| Non-interest bearing demand deposits | | | 447,120 | | | | | | | | 353,980 | | | | | | 417,366 | | | | | |
| Total funding liabilities / cost of funds | | $ | 2,582,624 | | | | | 1.21 | % | | $ | 2,581,671 | | | | 1.46 | % | | $ | 2,535,815 | | | | | 1.26 | % |
| Net interest income / net interest spread4 | | | | $ | 31,053 | | | 3.91 | % | | | | $ | 27,610 | | | 3.49 | % | | | | $ | 29,331 | | | 3.78 | % |
| Net interest margin4 | | | | | | 4.29 | % | | | | | | 3.85 | % | | | | | | 4.16 | % |
Net interest margin4, excluding effect of non-accrual loan income (expense) | | | | | | 4.27 | % | | | | | | 3.88 | % | | | | | | 4.20 | % |
Net interest margin4, excluding effect of non-accrual loan income(expense) and prepayment fee income | | | | | | 4.24 | % | | | | | | 3.86 | % | | | | | | 4.19 | % |
| | | | | | | | | | | | | | | | | | |
| Non-accrual loan income (reversed) recognized | | | | $ | 154 | | | | | | | $ | (188 | ) | | | | | | $ | (237 | ) | | |
| Prepayment fee income received | | | | | 175 | | | | | | | | 124 | | | | | | | | 34 | | | |
| Net | | | | $ | 329 | | | | | | | $ | (64 | ) | | | | | | $ | (203 | ) | | |
| | | | | | | | | | | | | | | | | | |
| Cost of deposits: | | | | | | | | | | | | | | | | | | |
| Non-interest bearing demand deposits | | $ | 447,120 | | | $ | - | | | | | $ | 353,980 | | $ | - | | | | | $ | 417,366 | | | $ | - | | | |
| Interest bearing deposits | | | 1,797,688 | | | | 4,977 | | | 1.10 | % | | | 1,837,492 | | | 5,968 | | | 1.29 | % | | | 1,775,825 | | | | 5,090 | | | 1.15 | % |
| Total deposits | | $ | 2,244,808 | | | $ | 4,977 | | | 0.88 | % | | $ | 2,191,472 | | $ | 5,968 | | | 1.08 | % | | $ | 2,193,191 | | | $ | 5,090 | | | 0.93 | % |
| |
| |
| | Nine Months Ended | | Nine Months Ended |
| | 9/30/2011 | | 9/30/2010 |
| | | | | | | | | | | | |
| | | | Interest | | Annualized | | | | Interest | | Annualized |
| | Average | | Income/ | | Average | | Average | | Income/ | | Average |
| | Balance | | Expense | | Yield/Cost | | Balance | | Expense | | Yield/Cost |
| | (Dollars in thousands) | | (Dollars in thousands) |
| INTEREST EARNING ASSETS: | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Gross loans4, includes loans held for sale | | $ | 2,202,535 | | $ | 101,137 | | | 6.14 | % | | $ | 2,178,540 | | $ | 100,302 | | | 6.16 | % |
| Securities available for sale | | | 504,402 | | | 11,738 | | | 3.10 | % | | | 520,259 | | | 11,410 | | | 2.92 | % |
| FRB and FHLB stock and other investments | | | 137,473 | | | 540 | | | 0.52 | % | | | 185,907 | | | 623 | | | 0.45 | % |
| Federal funds sold | | | - | | | - | | | N/A | | | | 8,132 | | | 49 | | | 0.79 | % |
| Total interest earning assets4 | | $ | 2,844,410 | | $ | 113,415 | | | 5.33 | % | | $ | 2,892,838 | | $ | 112,384 | | | 5.19 | % |
| | | | | | | | | | | | |
| INTEREST BEARING LIABILITIES: | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | |
| Demand, interest-bearing | | $ | 697,513 | | $ | 4,500 | | | 0.86 | % | | $ | 578,318 | | $ | 4,675 | | | 1.08 | % |
| Savings | | | 126,375 | | | 2,202 | | | 2.33 | % | | | 135,885 | | | 2,484 | | | 2.44 | % |
| Time deposits: | | | | | | | | | | | | |
| $100,000 or more | | | 333,532 | | | 1,187 | | | 0.48 | % | | | 574,482 | | | 6,880 | | | 1.60 | % |
| Other | | | 623,579 | | | 7,309 | | | 1.57 | % | | | 590,746 | | | 8,155 | | | 1.85 | % |
| Total time deposits | | | 957,111 | | | 8,496 | | | 1.19 | % | | | 1,165,228 | | | 15,035 | | | 1.73 | % |
| Total interest bearing deposits | | | 1,780,999 | | | 15,198 | | | 1.14 | % | | | 1,879,431 | | | 22,194 | | | 1.58 | % |
| FHLB advances | | | 308,114 | | | 7,422 | | | 3.22 | % | | | 350,000 | | | 9,042 | | | 3.45 | % |
| Other borrowings | | | 45,113 | | | 1,528 | | | 4.47 | % | | | 40,299 | | | 1,487 | | | 4.87 | % |
| Total interest bearing liabilities | | | 2,134,226 | | $ | 24,148 | | | 1.51 | % | | | 2,269,730 | | $ | 32,723 | | | 1.93 | % |
| Non-interest bearing demand deposits | | | 418,024 | | | | | | | 344,933 | | | |
| Total funding liabilities / cost of funds | | $ | 2,552,250 | | | | 1.26 | % | | $ | 2,614,663 | | | | 1.67 | % |
| Net interest income / net interest spread4 | | | | $ | 89,267 | | | 3.82 | % | | | | $ | 79,661 | | | 3.26 | % |
| Net interest margin4 | | | | | | 4.20 | % | | | | | | 3.68 | % |
Net interest margin4, excluding effect of non-accrual loan income(expense) | | | | | | 4.20 | % | | | | | | 3.74 | % |
Net interest margin4, excluding effect of non-accrual loan income(expense) and prepayment fee income | | | | | | 4.18 | % | | | | | | 3.72 | % |
| | | | | | | | | | | | |
| Non-accrual loan income (reversed) recognized | | | | $ | (184 | ) | | | | | | $ | (1,280 | ) | | |
| Prepayment fee income received | | | | | 438 | | | | | | | | 420 | | | |
| Net | | | | $ | 254 | | | | | | | $ | (860 | ) | | |
| | | | | | | | | | | | |
| Cost of deposits: | | | | | | | | | | | | |
| Non-interest bearing demand deposits | | $ | 418,024 | | $ | - | | | | | $ | 344,933 | | $ | - | | | |
| Interest bearing deposits | | | 1,780,999 | | | 15,198 | | | 1.14 | % | | | 1,879,431 | | | 22,194 | | | 1.58 | % |
| Total deposits | | $ | 2,199,023 | | $ | 15,198 | | | 0.92 | % | | $ | 2,224,364 | | $ | 22,194 | | | 1.33 | % |
| |
| |
| | For the Three Months Ended | | Nine Months Ended |
| | 9/30/2011 | | 9/30/2010 | | % change | | 6/30/2011 | | % change | | 9/30/2011 | | 9/30/2010 | | % change |
| AVERAGE BALANCES | | | | | | | | | | | | | | | | |
| Gross loans4, includes loans held for sale | | $ | 2,248,544 | | $ | 2,158,073 | | 4 | % | | $ | 2,190,436 | | 3 | % | | 2,202,535 | | 2,178,540 | | 1 | % |
| Investments | | | 628,315 | | | 689,715 | | -9 | % | | | 634,255 | | -1 | % | | 641,875 | | 714,298 | | -10 | % |
| Interest-earning assets4 | | | 2,876,859 | | | 2,847,788 | | 1 | % | | | 2,824,691 | | 2 | % | | 2,844,410 | | 2,892,838 | | -2 | % |
| Total assets | | | 2,987,441 | | | 2,968,151 | | 1 | % | | | 2,933,003 | | 2 | % | | 2,952,371 | | 3,013,934 | | -2 | % |
| | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | | 1,797,688 | | | 1,837,492 | | -2 | % | | | 1,775,825 | | 1 | % | | 1,780,999 | | 1,879,431 | | -5 | % |
| Interest-bearing liabilities | | | 2,135,504 | | | 2,227,691 | | -4 | % | | | 2,118,449 | | 1 | % | | 2,134,226 | | 2,269,730 | | -6 | % |
| Non-interest-bearing demand deposits | | | 447,120 | | | 353,980 | | 26 | % | | | 417,366 | | 7 | % | | 418,024 | | 344,933 | | 21 | % |
| Stockholders' Equity | | | 377,654 | | | 356,915 | | 6 | % | | | 369,485 | | 2 | % | | 370,155 | | 365,351 | | 1 | % |
| Net interest earning assets4 | | | 741,355 | | | 620,097 | | 20 | % | | | 706,242 | | 5 | % | | 710,184 | | 623,108 | | 14 | % |
| |
| |
| LOAN PORTFOLIO COMPOSITION4: | | 9/30/2011 | | 6/30/2011 | | % change | | 12/31/2010 | | % change | | 9/30/2010 | | % change |
| | | | | | | | | | | | | | |
| Commercial loans | | $ | 594,396 | | | $ | 578,508 | | | 3 | % | | $ | 549,240 | | | 8 | % | | $ | 559,357 | | | 6 | % |
| Real estate loans | | | 1,653,756 | | | | 1,602,162 | | | 3 | % | | | 1,573,814 | | | 5 | % | | | 1,574,856 | | | 5 | % |
| Consumer and other loans | | | 12,222 | | | | 11,755 | | | 4 | % | | | 13,268 | | | -8 | % | | | 15,650 | | | -22 | % |
| Loans outstanding4 | | | 2,260,374 | | | | 2,192,425 | | | 3 | % | | | 2,136,322 | | | 6 | % | | | 2,149,863 | | | 5 | % |
| Unamortized deferred loan fees - net of costs | | | (2,707 | ) | | | (2,386 | ) | | -13 | % | | | (2,261 | ) | | -20 | % | | | (2,350 | ) | | -15 | % |
| Loans4, net of deferred loan fees and costs | | | 2,257,667 | | | | 2,190,039 | | | 3 | % | | | 2,134,061 | | | 6 | % | | | 2,147,513 | | | 5 | % |
| Allowance for loan losses | | | (60,009 | ) | | | (59,696 | ) | | -1 | % | | | (62,320 | ) | | 4 | % | | | (63,692 | ) | | 6 | % |
| Loan receivable4, net | | $ | 2,197,658 | | | $ | 2,130,343 | | | 3 | % | | $ | 2,071,741 | | | 6 | % | | $ | 2,083,821 | | | 5 | % |
| 4 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. | | $ | 10,461 | | | $ | 12,407 | | | | | $ | 13,684 | | | | | $ | 14,343 | | | |
| | | | | | | | | | | | | | |
| REAL ESTATE LOANS BY PROPERTY TYPE: | | 9/30/2011 | | 6/30/2011 | | % change | | 12/31/2010 | | % change | | 9/30/2010 | | % change |
| Retail buildings | | $ | 409,852 | | | $ | 386,380 | | | 6 | % | | $ | 361,774 | | | 13 | % | | $ | 363,125 | | | 13 | % |
| Hotels/motels | | | 269,988 | | | | 256,129 | | | 5 | % | | | 275,433 | | | -2 | % | | | 279,480 | | | -3 | % |
| Gas stations/ car washes | | | 319,208 | | | | 309,914 | | | 3 | % | | | 270,788 | | | 18 | % | | | 272,760 | | | 17 | % |
| Mixed-use facilities | | | 156,653 | | | | 161,285 | | | -3 | % | | | 160,498 | | | -2 | % | | | 147,424 | | | 6 | % |
| Warehouses | | | 114,852 | | | | 116,461 | | | -1 | % | | | 112,415 | | | 2 | % | | | 117,182 | | | -2 | % |
| Multifamily | | | 99,923 | | | | 98,464 | | | 1 | % | | | 88,094 | | | 13 | % | | | 84,965 | | | 18 | % |
| Other | | | 283,280 | | | | 273,529 | | | 4 | % | | | 304,812 | | | -7 | % | | | 309,920 | | | -9 | % |
| Total | | $ | 1,653,756 | | | $ | 1,602,162 | | | 3 | % | | $ | 1,573,814 | | | 5 | % | | $ | 1,574,856 | | | 5 | % |
| | | | | | | | | | | | | | |
| DEPOSIT COMPOSITION | | 9/30/2011 | | 6/30/2011 | | % Change | | 12/31/2010 | | % Change | | 9/30/2010 | | % Change |
| Non-interest-bearing demand deposits | | $ | 454,842 | | | $ | 432,616 | | | 5 | % | | $ | 388,731 | | | 17 | % | | $ | 363,089 | | | 25 | % |
| Money market and other | | | 711,748 | | | | 712,028 | | | 0 | % | | | 688,593 | | | 3 | % | | | 688,355 | | | 3 | % |
| Saving deposits | | | 123,413 | | | | 126,694 | | | -3 | % | | | 126,255 | | | -2 | % | | | 137,410 | | | -10 | % |
| Time deposits of $100,000 or more | | | 424,044 | | | | 343,366 | | | 23 | % | | | 321,542 | | | 32 | % | | | 329,855 | | | 29 | % |
| Other time deposits | | | 553,149 | | | | 617,476 | | | -10 | % | | | 650,993 | | | -15 | % | | | 683,947 | | | -19 | % |
| Total deposit balances | | $ | 2,267,196 | | | $ | 2,232,180 | | | 2 | % | | $ | 2,176,114 | | | 4 | % | | $ | 2,202,656 | | | 3 | % |
| | | | | | | | | | | | | | |
| DEPOSIT COMPOSITION (%) | | 9/30/2011 | | 6/30/2011 | | 12/31/2010 | | 9/30/2010 | | | | | | |
| Non-interest-bearing demand deposits | | | 20.1 | % | | | 19.4 | % | | 17.9 | % | | | 16.5 | % | | | | | | |
| Money market and other | | | 31.4 | % | | | 31.9 | % | | 31.6 | % | | | 31.3 | % | | | | | | |
| Saving deposits | | | 5.4 | % | | | 5.7 | % | | 5.8 | % | | | 6.2 | % | | | | | | |
| Time deposits of $100,000 or more | | | 18.7 | % | | | 15.4 | % | | 14.8 | % | | | 15.0 | % | | | | | | |
| Other time deposits | | | 24.4 | % | | | 27.6 | % | | 29.9 | % | | | 31.0 | % | | | | | | |
| Total deposit balances | | | 100.0 | % | | | 100.0 | % | | 100.0 | % | | | 100.0 | % | | | | | | |
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| CAPITAL RATIOS | 9/30/2011 | | 6/30/2011 | | 12/31/2010 | | 9/30/2010 |
| Total stockholders' equity | $ | 383,615 | | | $ | 372,539 | | | $ | 358,563 | | | $ | 356,102 | |
| Tier 1 risk-based capital ratio | | 16.71 | % | | | 16.42 | % | | | 16.42 | % | | | 16.55 | % |
| Total risk-based capital ratio | | 17.98 | % | | | 17.69 | % | | | 17.69 | % | | | 17.82 | % |
| Tier 1 leverage ratio | | 13.50 | % | | | 13.32 | % | | | 12.61 | % | | | 12.78 | % |
| Book value per common share | $ | 8.30 | | | $ | 8.02 | | | $ | 7.69 | | | $ | 7.63 | |
| Tangible common equity per share2 | $ | 8.23 | | | $ | 7.94 | | | $ | 7.61 | | | $ | 7.55 | |
| Tangible common equity to tangible assets2 | | 10.40 | % | | | 10.21 | % | | | 9.76 | % | | | 9.61 | % |
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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. |
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| Reconciliation of GAAP financial measures to non-GAAP financial measures: |
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| | 9/30/2011 | | 6/30/2011 | | 12/31/2010 | | 9/30/2010 |
| Total stockholders' equity | | $ | 383,615 | | | $ | 372,539 | | | $ | 358,563 | | | $ | 356,102 | |
| Less: Preferred stock, net of discount | | | (64,918 | ) | | | (64,679 | ) | | | (64,203 | ) | | | (63,967 | ) |
| Common stock warrant | | | (2,383 | ) | | | (2,383 | ) | | | (2,383 | ) | | | (2,383 | ) |
| Goodwill and other intangible assets, net | | | (2,811 | ) | | | (2,888 | ) | | | (3,043 | ) | | | (3,170 | ) |
| Tangible common equity | | $ | 313,503 | | | $ | 302,589 | | | $ | 288,934 | | | $ | 286,582 | |
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| Total assets | | $ | 3,016,127 | | | $ | 2,967,288 | | | $ | 2,963,296 | | | $ | 2,984,976 | |
| Less: Goodwill and other intangible assets, net | | | (2,811 | ) | | | (2,888 | ) | | | (3,043 | ) | | | (3,170 | ) |
| Tangible assets | | $ | 3,013,316 | | | $ | 2,964,400 | | | $ | 2,960,253 | | | $ | 2,981,806 | |
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| Common shares outstanding | | | 38,095,260 | | | | 38,097,327 | | | | 37,983,027 | | | | 37,956,527 | |
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| Tangible common equity to tangible assets | | | 10.40 | % | | | 10.21 | % | | | 9.76 | % | | | 9.61 | % |
| Tangible common equity per share | | $ | 8.23 | | | $ | 7.94 | | | $ | 7.61 | | | $ | 7.55 | |
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| | For the Three Months Ended | | For the Nine Months Ended |
| ALLOWANCE FOR LOAN LOSSES: | | 9/30/2011 | | 6/30/2011 | | 3/31/2011 | | 12/31/2010 | | 9/30/2010 | | 9/30/2011 | | 9/30/2010 |
| Balance at beginning of period | | $ | 59,696 | | | $ | 63,340 | | | $ | 62,320 | | | $ | 63,692 | | | $ | 62,988 | | | $ | 62,320 | | | $ | 59,424 | |
| Provision for loan losses | | | 3,483 | | | | 10,047 | | | | 5,262 | | | | 5,800 | | | | 11,100 | | | | 18,792 | | | | 78,830 | |
| Recoveries | | | 800 | | | | 1,500 | | | | 1,068 | | | | 917 | | | | 432 | | | | 3,367 | | | | 2,001 | |
| Charge offs | | | (3,970 | ) | | | (15,191 | ) | | | (5,310 | ) | | | (8,089 | ) | | | (10,828 | ) | | | (24,470 | ) | | | (76,563 | ) |
| Balance at end of period | | $ | 60,009 | | | $ | 59,696 | | | $ | 63,340 | | | $ | 62,320 | | | $ | 63,692 | | | $ | 60,009 | | | $ | 63,692 | |
| Net charge-off/average gross loans4 (annualized) | | | 0.56 | % | | | 2.50 | % | | | 0.78 | % | | | 1.33 | % | | | 1.93 | % | | | 1.28 | % | | | 4.56 | % |
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| | For the Three Months Ended | | For the Nine Months Ended |
NET CHARGED OFF LOANS BY TYPE | | 9/30/2011 | | 6/30/2011 | | 3/31/2011 | | 12/31/2010 | | 9/30/2010 | | 9/30/2011 | | 9/30/2010 |
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| Real estate loans | | $ | 1,902 | | | $ | 12,242 | | | $ | 2,847 | | | $ | 5,400 | | | $ | 5,821 | | | $ | 16,991 | | | $ | 53,520 | |
| Commercial loans | | | 1,158 | | | | 1,474 | | | | 1,455 | | | | 1,663 | | | | 4,549 | | | | 4,087 | | | | 19,993 | |
| Consumer loans | | | 110 | | | | (25 | ) | | | (60 | ) | | | 109 | | | | 26 | | | | 25 | | | | 1,049 | |
| Total net charge-offs | | $ | 3,170 | | | $ | 13,691 | | | $ | 4,242 | | | $ | 7,172 | | | $ | 10,396 | | | $ | 21,103 | | | $ | 74,562 | |
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| NON-PERFORMING ASSETS | | 9/30/2011 | | 6/30/2011 | | 3/31/2011 | | 12/31/2010 | | 9/30/2010 |
| Delinquent loans 90 days or more on non-accrual status4 | | $ | 27,790 | | | $ | 35,385 | | | $ | 46,961 | | | $ | 43,803 | | | $ | 50,521 | |
| Delinquent loans 90 days or more on accrual status | | | - | | | | - | | | | - | | | | - | | | | - | |
| Total non-performing loans4 | | | 27,790 | | | | 35,385 | | | | 46,961 | | | | 43,803 | | | | 50,521 | |
| Other real estate owned | | | 4,838 | | | | 4,404 | | | | 2,708 | | | | 1,581 | | | | 3,591 | |
| Accruing restructured loans | | | 23,543 | | | | 15,787 | | | | 29,419 | | | | 35,103 | | | | 34,391 | |
| Total non-performing assets4 | | $ | 56,171 | | | $ | 55,576 | | | $ | 79,088 | | | $ | 80,487 | | | $ | 88,503 | |
| Non-performing assets4/ total assets | | | 1.86 | % | | | 1.87 | % | | | 2.70 | % | | | 2.72 | % | | | 2.96 | % |
| Non-performing assets4/ gross loans4 & OREO | | | 2.48 | % | | | 2.53 | % | | | 3.69 | % | | | 3.77 | % | | | 4.11 | % |
| Non-performing assets4/ total capital | | | 14.64 | % | | | 14.92 | % | | | 21.71 | % | | | 22.45 | % | | | 24.85 | % |
| Non-performing loans (excludes accruing restructured loans)4/gross loans4 | | | 1.23 | % | | | 1.62 | % | | | 2.19 | % | | | 2.05 | % | | | 2.35 | % |
Non-performing loans (includes accruing restructured loans)4/gross loans4 | | | 2.27 | % | | | 2.34 | % | | | 3.57 | % | | | 3.70 | % | | | 3.95 | % |
| Allowance for loan losses/ gross loans4 | | | 2.66 | % | | | 2.73 | % | | | 2.96 | % | | | 2.92 | % | | | 2.97 | % |
| Allowance for loan losses/ non-performing loans (excludes accruing restructured loans)4 | | | 215.94 | % | | | 168.70 | % | | | 134.88 | % | | | 142.27 | % | | | 126.07 | % |
| Allowance for loan losses/ non-performing loans (includes accruing restructured loans)4 | | | 116.90 | % | | | 116.66 | % | | | 82.93 | % | | | 78.98 | % | | | 75.01 | % |
| Allowance for loan losses/ non-performing assets4 | | | 106.83 | % | | | 107.41 | % | | | 80.09 | % | | | 77.43 | % | | | 71.97 | % |
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| BREAKDOWN OF ACCRUING RESTRUCTURED LOANS BY TYPE: | | 9/30/2011 | | 6/30/2011 | | 3/31/2011 | | 12/31/2010 | | 9/30/2010 |
| Retail buildings | | $ | 590 | | | $ | - | | | $ | 1,192 | | | $ | 4,832 | | | $ | 2,396 | |
| Hotels/motels | | | 12,905 | | | | 12,027 | | | | 17,503 | | | | 6,193 | | | | 8,589 | |
| Gas stations/ car washes | | | - | | | | - | | | | 566 | | | | 1,475 | | | | 910 | |
| Mixed-use facilities | | | 952 | | | | 953 | | | | 953 | | | | - | | | | - | |
| Warehouses | | | - | | | | - | | | | - | | | | - | | | | - | |
| Multifamily | | | - | | | | - | | | | - | | | | - | | | | - | |
| Other3 | | | 9,096 | | | | 2,807 | | | | 9,205 | | | | 22,603 | | | | 22,496 | |
| Total | | $ | 23,543 | | | $ | 15,787 | | | $ | 29,419 | | | $ | 35,103 | | | $ | 34,391 | |
| 3 Includes commercial business and other loans | | | | | | | | | | |
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| DELINQUENT LOANS LESS THAN 90 DAYS PAST DUE | | 9/30/2011 | | 6/30/2011 | | 3/31/2011 | | 12/31/2010 | | 9/30/2010 |
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| 30 - 59 days | | $ | 9,455 | | | $ | 1,450 | | | $ | 5,618 | | | $ | 3,012 | | | $ | 2,192 | |
| 60 - 89 days | | | 1,503 | | | | 1,868 | | | | 2,741 | | | | 1,284 | | | | 757 | |
| Total delinquent loans less than 90 days past due4 | | $ | 10,958 | | | $ | 3,318 | | | $ | 8,359 | | | $ | 4,296 | | | $ | 2,949 | |
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| DELINQUENT LOANS LESS THAN 90 DAYS PAST DUE BY TYPE | | 9/30/2011 | | 6/30/2011 | | 3/31/2011 | | 12/31/2010 | | 9/30/2010 |
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| Real estate loans | | $ | 9,091 | | | $ | 1,701 | | | $ | 7,200 | | | $ | 2,714 | | | $ | 1,369 | |
| Commercial loans | | | 1,861 | | | | 1,606 | | | | 1,138 | | | | 1,539 | | | | 1,540 | |
| Consumer loans | | | 6 | | | | 11 | | | | 21 | | | | 43 | | | | 40 | |
| Total delinquent loans less than 90 days past due4 | | $ | 10,958 | | | $ | 3,318 | | | $ | 8,359 | | | $ | 4,296 | | | $ | 2,949 | |
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| NON-PERFORMING LOANS BY TYPE | | 9/30/2011 | | 6/30/2011 | | 3/31/2011 | | 12/31/2010 | | 9/30/2010 |
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| Real estate loans | | $ | 14,725 | | | $ | 20,661 | | | $ | 31,096 | | | $ | 26,895 | | | $ | 31,153 | |
| Commercial loans | | | 12,908 | | | | 14,342 | | | | 15,465 | | | | 16,460 | | | | 18,680 | |
| Consumer loans | | | 157 | | | | 382 | | | | 400 | | | | 448 | | | | 688 | |
| Total non-performing loans4 | | $ | 27,790 | | | $ | 35,385 | | | $ | 46,961 | | | $ | 43,803 | | | $ | 50,521 | |
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| WATCH LIST LOANS | | 9/30/2011 | | 6/30/2011 | | 3/31/2011 | | 12/31/2010 | | 9/30/2010 |
| Special mention | | $ | 31,576 | | | $ | 15,342 | | | $ | 21,272 | | | $ | 29,573 | | | $ | 30,767 | |
| Substandard | | | 103,798 | | | | 116,561 | | | | 142,191 | | | | 135,774 | | | | 147,641 | |
| Doubtful | | | 5,600 | | | | 5,174 | | | | 5,057 | | | | 260 | | | | 413 | |
| Loss | | | - | | | | - | | | | - | | | | - | | | | - | |
| Total watch list loans4 | | $ | 140,974 | | | $ | 137,077 | | | $ | 168,520 | | | $ | 165,607 | | | $ | 178,821 | |
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| 4 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
