EXHIBIT 99.1
BBCN Bancorp Reports 2014 Third Quarter Financial Results
Q3 2014 Summary:
- Net income totals $21.4 million, or $0.27 per diluted common share
- New loan production for the quarter amounts to $382 million
- Loans receivable increase to $5.43 billion, reflecting a 7% increase year-to-date
- Total deposits increase to $5.51 billion, reflecting a 7% increase for the first nine months of 2014
- Total assets increase to $6.93 billion, reflecting a 7% increase from December 31, 2013
LOS ANGELES, Oct. 20, 2014 (GLOBE NEWSWIRE) -- BBCN Bancorp, Inc. (the "Company") (Nasdaq:BBCN), the holding company of BBCN Bank (the "Bank"), today reported net income of $21.4 million, or $0.27 per diluted common share, for the three months ended September 30, 2014. This compares with net income of $22.3 million, or $0.28 per diluted common share, for the preceding 2014 second quarter and $23.6 million, or $0.30 per diluted common share, for the year-ago third quarter.
"We had another quarter of consistent execution highlighted by steady loan growth with total new loan originations of $382 million for the quarter," said Kevin S. Kim, Chairman and Chief Executive Officer of BBCN Bancorp, Inc. "We continue to see good loan demand in our core California and New York/New Jersey markets, while gaining more traction in our newer markets in the Pacific Northwest and Chicago. Despite the ramp up in quarterly loan production, our overall net loan growth for the third quarter was mitigated by a higher-than-usual level of payoffs as result of a few large transactions.
"We continue to build on the foundation for the healthy long-term growth of our franchise. In addition to the progress we are making with new products and services to better diversify our business mix, we are forging ahead with our efforts to establish a presence in South Korea. We signed cooperative agreements with the City of Los Angeles and Seoul Metropolitan Government during the quarter, and we plan to open our first representative office in Seoul before year-end. We believe our presence in South Korea will significantly enhance our ability to capture more business with Korean national companies with operations in the United States. Given the consistency of our financial performance and the tangible achievements being made with our strategic initiatives, we believe the prospects for BBCN are stronger than ever," said Kim.
Financial Highlights
| (Dollars in thousands, except per share data) | At or for the Three Months Ended |
| | 9/30/2014 | 6/30/2014 | 9/30/2013 |
| Net income | $ 21,420 | $ 22,312 | $ 23,552 |
| Diluted earnings per share | $ 0.27 | $ 0.28 | $ 0.30 |
| Net interest income before provision for loan losses | $ 67,907 | $ 67,490 | $ 64,360 |
| Net interest margin | 4.15% | 4.20% | 4.42% |
| Noninterest income | $ 11,369 | $ 10,492 | $ 10,799 |
| Noninterest expense | $ 39,420 | $ 37,739 | $ 35,746 |
| Net loans receivable | $ 5,364,612 | $ 5,280,187 | $ 5,006,856 |
| Deposits | $ 5,509,754 | $ 5,470,388 | $ 5,148,057 |
| Nonaccrual loans (1) | $ 39,564 | $ 42,651 | $ 36,129 |
| ALLL to loans receivable | 1.26% | 1.25% | 1.34% |
| ALLL to nonaccrual loans (1) | 172.46% | 156.78% | 181.89% |
| ALLL to nonperforming assets (1) (2) | 57.44% | 62.40% | 65.27% |
| Provision for loan losses | $ 4,256 | $ 2,996 | $ 744 |
| Net charge offs | $ 2,894 | $ 1,825 | $ 6,704 |
| ROA | 1.25% | 1.31% | 1.53% |
| ROE | 9.97% | 10.59% | 11.85% |
| Efficiency ratio | 49.73% | 48.39% | 47.56% |
| | | | |
| (1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $28.1 million, $30.0 million and $25.2 million at September 30, 2014, June 30, 2014 and September 30, 2013, respectively. |
| (2) Nonperforming assets exclude acquired credit impaired loans totaling $32.7 million, $43.7 million and $38.6 million at September 30, 2014, June 30, 2014 and September 30, 2013, respectively. |
Operating Results for the 2014 Third Quarter
The comparability of BBCN's operating results with past performance is impacted by acquisition accounting adjustments related to past acquisitions. The Company provides the following supplemental information to facilitate a better understanding of past financial performance. Operating results for the three months ended September 30, 2014, June 30, 2014, and September 30, 2013 include the following pre-tax acquisition accounting adjustments related to past acquisitions:
| | Three Months Ended |
| | September 30,
2014 | June 30,
2014 | September 30,
2013 |
| Accretion of discount on acquired performing loans | $ 4,157 | $ 4,575 | $ 4,074 |
| Accretion of discount on acquired credit impaired loans | 1,863 | 2,096 | 2,806 |
| Amortization of premium on acquired FHLB borrowings | 95 | 94 | 94 |
| Accretion of discount on acquired subordinated debt | (41) | (40) | (81) |
| Amortization of premium on acquired time deposits | 125 | 231 | 308 |
| Increase to pre-tax income | $ 6,199 | $ 6,956 | $ 7,201 |
Net Interest Income and Net Interest Margin. Net interest income before provision for loan losses increased 1% to $67.9 million for the 2014 third quarter from $67.5 million in the preceding second quarter of 2014 and rose 6% over $64.4 million in the prior-year third quarter. The Company attributed the increases to strong levels of loan originations which supported the expansion of its loans receivable over prior periods. Overall, average loans receivable for the 2014 third quarter rose 3% over the preceding second quarter and increased 14% over the prior-year period, when the Company acquired the former Foster Bankshares, Inc. in the middle of the 2013 third quarter.
The net interest margin (net interest income divided by average interest earning assets) and the impact of acquisition accounting adjustments are summarized in the following table:
| | Three Months Ended |
| | 9/30/2014 | 6/30/2014 | change | 9/30/2013 | change |
| Net interest margin, excluding the effect of acquisition accounting adjustments | 3.73% | 3.72% | 0. 01% | 3.86% | (0.13)% |
| Acquisition accounting adjustments | 0.42 | 0.48 | (0.06) | 0.56 | (0.14) |
| Net interest margin | 4.15% | 4.20% | (0.05)% | 4.42% | (0.27)% |
The net interest margin for the 2014 third quarter declined 5 basis points from the preceding second quarter to 4.15%, but increased 1 basis point on a core basis, excluding the effect of acquisition accounting adjustments.
Compared with the prior-year period, net interest margin for the 2014 third quarter declined 27 basis points, largely due to a decrease in the weighted average yield on loans. Excluding the effect of acquisition accounting adjustments, the core net interest margin for the current third quarter declined 13 basis points from the year-ago third quarter.
The weighted average yield on loans and the impact of acquisition accounting adjustments are summarized in the following table:
| | Three Months Ended |
| | 9/30/2014 | 6/30/2014 | change | 9/30/2013 | change |
| Weighted average yield on loans, excluding the effect of acquisition accounting adjustments | 4.78% | 4.86% | (0.08)% | 4.96% | (0.18)% |
| Acquisition accounting adjustments | 0.51 | 0.58 | (0.07) | 0.67 | (0.16) |
| Weighted average yield on loans | 5.29% | 5.44% | (0.15)% | 5.63% | (0.34)% |
The weighted average yield on loans for the 2014 third quarter declined 15 basis points to 5.29% from the preceding second quarter. On a core basis excluding the effect of acquisition accounting adjustments, the weighted average yield on loans declined 8 basis points. The weighted average yield on new loans originated during the 2014 third quarter was 4.31%, compared with 4.52% in the preceding second quarter, reflecting a considerably higher contribution of variable rate loans, which are typically booked at lower rates than fixed rate loans. Variable rate loans accounted for 55% of new loan originations for the 2014 third quarter, versus 39% in the preceding second quarter. Compared with the prior-year period, the weighted average yield on loans for the 2014 third quarter decreased 34 basis points and 18 basis points on a core basis, excluding the effect of acquisition accounting adjustments.
The composition of fixed and variable rate loans and the associated weighted average contractual rates are summarized in the following table:
| | 9/30/2014 | 6/30/2014 | change | 9/30/2013 | change |
| Fixed rate loans | | | | | |
| As a percentage of total loans | 51% | 50% | 1% | 45% | 1% |
| Weighted average contractual rate | 4.79% | 4.85% | (0.06)% | 5.16% | (0.37)% |
| Variable rate loans | | | | | |
| As a percentage of total loans | 49% | 50% | (1)% | 55% | (6)% |
| Weighted average contractual rate | 4.25% | 4.29% | (0.04)% | 4.43% | (0.18)% |
The declines in the weighted average contractual rate for fixed rate loans for the 2014 third quarter versus prior periods reflect what continues to be a highly competitive rate environment for fixed rate commercial real estate loans in the current interest rate environment.
The weighted average cost of deposits and the impact of acquisition accounting adjustments are summarized in the following table:
| | Three Months Ended |
| | 9/30/2014 | 6/30/2014 | change | 9/30/2013 | change |
| Weighted average cost of deposits, excluding the effect of acquisition accounting adjustments | 0.55% | 0.55% | −% | 0.51% | 0.04% |
| Acquisition accounting adjustments | (0.01) | (0.01) | − | (0.02) | 0.01 |
| Weighted average cost of deposits | 0.54% | 0.54% | −% | 0.49% | 0.05% |
The weighted average cost of deposits for the 2014 third quarter was flat with the preceding second quarter both on a reported basis and on a core basis, excluding the effect of amortization of premium on time deposits assumed in acquisitions. Compared with the prior-year period, the weighted average cost of deposits for the 2014 third quarter increased 5 basis points and rose 4 basis points on a core basis, excluding the effect of premium amortization on time deposits assumed in acquisitions.
Noninterest Income. Total noninterest income for the 2014 third quarter rose 8% to $11.4 million from $10.5 million in the preceding 2014 second quarter and was up 5% over $10.8 million in the prior-year third quarter. The Company attributed the increases largely to higher gain on sale of SBA loans, which amounted to $3.6 million for the 2014 third quarter, versus $2.8 million for the 2014 second quarter and for the 2013 third quarter.
Noninterest Expense. Total noninterest expense for the third quarter of 2014 amounted to $39.4 million, reflecting a 4% increase from $37.7 million in the preceding 2014 second quarter and an 10% increase over $35.7 million in the 2013 third quarter. The increases are largely attributed to higher compensation and credit related expenses.
Salaries and employee benefits expense for the 2014 third quarter rose 7% from the preceding second quarter and was up 17% over the prior-year third quarter, largely reflecting the increase in FTEs to support BBCN's growing franchise and progress with strategic initiatives. In addition, the Company noted that the salaries and employee benefits expense for the 2013 third quarter reflects the mid-quarter Foster acquisition. The total number of FTEs as of September 30, 2014 was 911, a 4% increase over 875 as of June 30, 2014, and a 22% increase over 831 as of September 30, 2013.
Credit related expenses, which previously were included in other expenses, amounted to $3.5 million for the 2014 third quarter, compared with $3.0 million in the preceding second quarter and $2.6 million in the year-ago third quarter.
Income Tax Provision. The effective tax rate for the 2014 third quarter was 39.8%, compared with 40.1% for the preceding 2014 second quarter and 39.1% for the 2013 third quarter.
Balance Sheet Summary
Loans receivable totaled $5.43 billion at September 30, 2014, reflecting a 2% increase over $5.35 billion at June 30, 2014, and a 7% increase year-to-date over $5.07 billion at December 31, 2013.
Total new loan originations during the third quarter of 2014 amounted to $382.3 million, including SBA loan originations of $69.7 million. Sales of SBA loans to the secondary market and gains derived from those sales are based substantially on the production of SBA 7(a) loans. Production of SBA 7(a) loans amounted to $40.0 million for the third quarter of 2014, compared with $62.2 million for the preceding 2014 second quarter. During the 2014 third quarter, the Company sold $40.2 million of its SBA loans held for sale.
The robust loan production in the 2014 third quarter was largely offset by higher-than-usual aggregate pay offs and pay downs which amounted to $312.0 million for the quarter. This compares with $231.2 million for the preceding second quarter and $266.1 million for the year-ago third quarter.
Total deposits amounted to $5.51 billion at September 30, 2014, reflecting a 1% increase over $5.47 billion at June 30, 2014, and a 7% increase over $5.15 billion at year-end 2013. The increase in total deposits from June 30, 2014 reflects a 6% increase in money market account balances, which was partially offset by strategic reductions in wholesale deposits. Noninterest bearing deposits at September 30, 2014 totaled $1.50 billion and accounted for 27% of total deposits.
Credit Quality
The provision for loan losses for the 2014 third quarter was $4.3 million, compared with $3.0 million for the preceding 2014 second quarter and $744,000 for the prior-year third quarter.
For a more detailed understanding of the changes in the Allowance for Loan and Lease Losses ("ALLL"), the composition of the ALLL has been segmented for disclosure purposes between loans accounted for under the amortized cost method (referred to as "Legacy Loans") and loans acquired through the Center Financial, Pacific International and Foster transactions (referred to as "Acquired Loans"). The Acquired Loans are further segregated between performing and credit impaired loans.
The composition of the ALLL as of September 30, 2014, June 30, 2014, and September 30, 2013 is as follows:
| (dollars in thousands) | 9/30/2014 | 6/30/2014 | 9/30/2013 |
| Legacy Loans (1) | $ 60,073 | $ 58,877 | $ 59,773 |
| Acquired Performing Loans (2) | 1,973 | 2,113 | 1,964 |
| Acquired Credit Impaired Loans (2) | 6,186 | 5,880 | 3,978 |
| Total ALLL | $ 68,232 | $ 66,870 | $ 65,715 |
| | | | |
| Loans receivable | $ 5,432,844 | $ 5,347,057 | $ 4,898,939 |
| ALLL coverage ratio | 1.26% | 1.25% | 1.34% |
| |
| (1) Legacy Loans include loans originated by the Bank's predecessor bank, loans originated by BBCN and loans that were acquired and that have been refinanced as new loans. |
| (2) | Acquired Loans were marked to fair value at acquisition date, and the allowance for loan losses reflect provisions for credit deterioration since the acquisition date. |
Following are the components of criticized loan balances as of September 30, 2014, June 30, 2014, and September 30, 2013:
| (dollars in thousands) | 9/30/2014 | 6/30/2014 | 9/30/2013 |
| Special Mention (1) | $ 113,395 | $ 92,470 | $ 111,631 |
| Classified (1) | $ 231,768 | $ 242,258 | $ 246,743 |
| Criticized | $ 345,163 | $ 334,728 | $ 358,374 |
| | |
| (1) Balances include Acquired Loans which were marked to fair value on the date of acquisition. |
The Company defines nonperforming loans to include delinquent loans past due 90 days or more on nonaccrual status, plus delinquent loans past due 90 days or more on accrual status (excluding acquired credit impaired loans) and accruing restructured loans.
Nonaccrual loans at September 30, 2014 declined to $39.6 million, or 0.73% of loans receivable, compared with $42.7 million, or 0.80% of loans receivable, at June 30, 2014 and $36.1 million, or 0.74% at September 30, 2013. Accruing restructured loans totaled $56.1 million at September 30, 2014, compared with $43.9 million at June 30, 2014 and $36.0 million at September 30, 2013. Total nonperforming loans at September 30, 2014 totaled $95.6 million, or 1.76% of loans receivable, compared with $86.6 million, or 1.62% of loans receivable, at June 30, 2014 and $73.1 million, or 1.49% of loans receivable, at September 30, 2013.
Nonperforming assets, including other real estate owned, amounted to $118.8 million at September 30, 2014, or 1.71% of total assets, compared with $107.2 million, or 1.56% of total assets, at June 30, 2014, and $100.7 million, or 1.59% of total assets, at September 30, 2013.
Net loan charge-offs for the 2014 third quarter totaled $2.9 million and equaled 0.21% of average loans receivable on an annualized basis. This compares with net loan charge offs of $1.8 million, or 0.14% of average loans receivable on an annualized basis, for the preceding 2014 second quarter and $6.7 million, or 0.56% of average loans receivable on an annualized basis, for the year-ago third quarter.
The allowance for loan losses at September 30, 2014 was $68.2 million, or 1.26% of loans receivable (excluding loans held for sale), compared with $66.9 million, or 1.25%, at June 30, 2014 and $65.7 million, or 1.34%, at September 30, 2013. The coverage ratio of the allowance for loan losses to nonperforming loans (excluding acquired credit impaired loans) was 71.35% at September 30, 2014, compared with 77.26% at June 30, 2014 and 89.90% at September 30, 2013.
Impaired loans (defined as loans for which it is probable that not all principal and interest payments due will be collected in accordance with the contractual terms and restructured loans) totaled $130.7 million at September 30, 2014, compared with $124.2 million at June 30, 2014 and $99.2 million at September 30, 2013.
Capital
At September 30, 2014, the Company continued to exceed all regulatory capital requirements to be classified as a "well-capitalized" institution, as summarized in the following table.
| | 9/30/2014 | 6/30/2014 | 9/30/2013 |
| Leverage Ratio | 11.80% | 11.66% | 12.06% |
| Tier 1 Risk-based Ratio | 13.73% | 13.71% | 13.64% |
| Total Risk-based Ratio | 14.93% | 14.90% | 14.89% |
Tangible common equity per share and as a percentage of tangible assets are summarized in the following table:
| | 9/30/2014 | 6/30/2014 | 9/30/2013 |
| Tangible common equity per share (1) | $9.49 | $9.34 | $8.52 |
| Tangible common equity to tangible assets (1) | 11.07% | 10.99% | 10.87% |
| |
| (1) Tangible common equity to tangible assets is a non-GAAP financial measure that represents common equity less goodwill and net other intangible assets divided by total assets less goodwill and net other intangible assets. Management reviews tangible common equity to tangible assets in evaluating the Company's capital levels and has included this ratio in response to market participant interest in tangible common equity as a measure of capital. The accompanying financial information includes a reconciliation of the ratio of tangible common equity to tangible assets with stockholders' equity and total assets. |
Investor Conference Call
The Company will host an investor conference call on Tuesday, October 21, 2014 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for the 2014 third quarter. Investors and analysts may access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international), and asking for the "BBCN Bancorp Conference Call." Other interested parties are invited to listen to a live webcast of the call available in the Investor Relations section under About Us at BBCN Bancorp's website BBCNbank.com. After the live webcast, a replay will remain available in the Investor Relations section of BBCN Bancorp's website for one year. A replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) through October 29, 2014, passcode 10053641.
About BBCN Bancorp, Inc.
BBCN Bancorp, Inc. is the holding company of BBCN Bank, the largest Korean-American bank in the nation with $6.9 billion in assets as of September 30, 2014. Headquartered in Los Angeles and serving a diverse mix of customers mirroring its communities, BBCN operates 49 branches in California, New York, New Jersey, Illinois, Washington and Virginia, along with six loan production offices in Seattle, Denver, Dallas, Atlanta, Northern California and Annandale, Virginia. BBCN specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and business lending, SBA lending and international trade financing. BBCN Bank is a California-chartered bank and its deposits are insured by the FDIC to the extent provided by law. BBCN is an Equal Opportunity Lender.
Forward-Looking Statements
This press release 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.
(tables follow)
| BBCN Bancorp, Inc. |
| Consolidated Financial Statements and Selected Financial Data |
| Unaudited (Dollars in Thousands, Except per Share Data) |
| | | | | | | | | | |
| | | | | | | | | | |
| Assets | 9/30/2014 | 6/30/2014 | % change | 12/31/2013 | % change | 9/30/2013 | % change | | |
| | | | | | | | | | |
| Cash and due from banks | 443,320 | $ 414,919 | 7% | $ 316,705 | 40% | $ 345,352 | 28% | | |
| Securities available for sale, at fair value | 710,625 | 746,683 | -5% | 705,751 | 1% | 708,566 | 0% | | |
| Federal Home Loan Bank, Federal Reserve Bank stock and other investments | 28,744 | 28,782 | 0% | 28,324 | 1% | 28,340 | 1% | | |
| Loans held for sale, at the lower of cost or fair value | 45,695 | 53,324 | -14% | 44,115 | 4% | 49,480 | -8% | | |
| Loans receivable | 5,432,844 | 5,347,057 | 2% | 5,074,176 | 7% | 4,898,939 | 11% | | |
| Allowance for loan losses | (68,232) | (66,870) | -2% | (67,320) | -1% | (65,715) | -4% | | |
| Net loans receivable | 5,364,612 | 5,280,187 | 2% | 5,006,856 | 7% | 4,833,224 | 11% | | |
| Accrued interest receivable | 13,126 | 13,133 | 0% | 13,403 | -2% | 13,108 | 0% | | |
| Premises and equipment, net | 30,999 | 30,699 | 1% | 30,894 | 0% | 29,747 | 4% | | |
| Bank owned life insurance | 45,644 | 45,354 | 1% | 44,770 | 2% | 44,593 | 2% | | |
| Goodwill | 105,401 | 105,401 | 0% | 105,401 | 0% | 119,881 | -12% | | |
| Other intangible assets, net | 13,735 | 13,559 | 1% | 14,099 | -3% | 14,225 | -3% | | |
| Other assets | 125,601 | 134,250 | -6% | 164,881 | -24% | 154,471 | -19% | | |
| Total assets | 6,927,502 | $ 6,866,291 | 1% | $ 6,475,199 | 7% | $ 6,340,987 | 9% | | |
| | | | | | | | | | |
| Liabilities | | | | | | | | | |
| | | | | | | | | | |
| Deposits | 5,509,754 | $ 5,470,388 | 1% | $ 5,148,057 | 7% | $ 5,021,102 | 10% | | |
| Borrowings from Federal Home Loan Bank | 467,071 | 461,166 | 1% | 421,352 | 11% | 421,446 | 11% | | |
| Subordinated debentures | 42,117 | 42,076 | 0% | 57,410 | -27% | 57,303 | -27% | | |
| Accrued interest payable | 6,157 | 6,087 | 1% | 4,821 | 28% | 4,827 | 28% | | |
| Other liabilities | 37,755 | 33,965 | 11% | 34,185 | 10% | 35,079 | 8% | | |
| Total liabilities | 6,062,854 | 6,013,682 | 1% | 5,665,825 | 7% | 5,539,757 | 9% | | |
| | | | | | | | | | |
| Stockholders' Equity | | | | | | | | | |
| Common stock, $0.001 par value; authorized, 150,000,000 shares at September 30, 2014, June 30, 2014, December 31, 2013 and September 30, 2013; issued and outstanding, 79,497,331, 79,493,732, 79,441,525, and 79,247,719 shares and at September 30, 2014, June 30, 2014, December 31, 2013 and September 30, 2013, respectively | 79 | 79 | 0% | 79 | 0% | 79 | 0% | | |
| Capital surplus | 541,406 | 541,173 | 0% | 540,876 | 0% | 538,062 | 1% | | |
| Retained earnings | 324,664 | 311,195 | 4% | 278,604 | 17% | 266,478 | 22% | | |
| Accumulated other comprehensive income, net | (1,501) | 162 | -1027% | (10,185) | 85% | (3,389) | 56% | | |
| Total stockholders' equity | 864,648 | 852,609 | 1% | 809,374 | 7% | 801,230 | 8% | | |
| | | | | | | | | | |
| Total liabilities and stockholders' equity | $ 6,927,502 | $ 6,866,291 | 1% | $ 6,475,199 | 7% | $ 6,340,987 | 9% | | |
| | | | | | | | | | |
| | | | |
| | Three Months Ended | Nine Months Ended | |
| | 9/30/2014 | 6/30/2014 | %
change | 9/30/2013 | %
change | 9/30/2014 | 9/30/2013 | %
change | |
| | | | | | | | | | |
| Interest income: | | | | | | | | | |
| Interest and fees on loans | $ 72,437 | $ 71,687 | 1% | $ 67,747 | 7% | $ 212,818 | $ 196,249 | 8% | |
| Interest on securities | 3,999 | 4,078 | -2% | 3,802 | 5% | 12,171 | 10,755 | 13% | |
| Interest on federal funds sold and other investments | 648 | 688 | -6% | 486 | 33% | 1,901 | 1,153 | 65% | |
| Total interest income | 77,084 | 76,453 | 1% | 72,035 | 7% | 226,890 | 208,157 | 9% | |
| | | | | | | | | | |
| Interest expense: | | | | | | | | | |
| Interest on deposits | 7,419 | 7,272 | 2% | 5,959 | 25% | 21,381 | 17,014 | 26% | |
| Interest on other borrowings | 1,758 | 1,691 | 4% | 1,716 | 2% | 5,146 | 4,964 | 4% | |
| Total interest expense | 9,177 | 8,963 | 2% | 7,675 | 20% | 26,527 | 21,978 | 21% | |
| | | | | | | | | | |
| Net interest income before provision for loan losses | 67,907 | 67,490 | 1% | 64,360 | 6% | 200,363 | 186,179 | 8% | |
| Provision for loan losses | 4,256 | 2,996 | 42% | 744 | 472% | 10,278 | 9,050 | 14% | |
| Net interest income after provision for loan losses | 63,651 | 64,494 | -1% | 63,616 | 0% | 190,085 | 177,129 | 7% | |
| | | | | | | | | | |
| Noninterest income: | | | | | | | | | |
| Service fees on deposit accounts | 3,456 | 3,360 | 3% | 3,321 | 4% | 10,288 | 9,118 | 13% | |
| Net gains on sales of SBA loans | 3,578 | 2,811 | 27% | 2,827 | 27% | 9,112 | 8,816 | 3% | |
| Net gains on sales of other loans | -- | -- | 0% | -- | 0% | -- | 62 | -100% | |
| Net gains on sales of securities available-for-sale | -- | -- | 0% | -- | 0% | -- | 54 | -100% | |
| Net gains (loss) on sales of OREO | 29 | 31 | -6% | (48) | 160% | 466 | (57) | 918% | |
| Other income and fees | 4,306 | 4,290 | 0% | 4,699 | -8% | 13,091 | 13,364 | -2% | |
| Total noninterest income | 11,369 | 10,492 | 8% | 10,799 | 5% | 32,957 | 31,357 | 5% | |
| | | | | | | | | | |
| Noninterest expense: | | | | | | | | | |
| Salaries and employee benefits | 19,346 | 18,143 | 7% | 16,535 | 17% | 56,428 | 49,086 | 15% | |
| Occupancy | 4,722 | 4,715 | 0% | 4,360 | 8% | 14,060 | 13,206 | 6% | |
| Furniture and equipment | 1,916 | 2,012 | -5% | 1,728 | 11% | 5,942 | 4,914 | 21% | |
| Advertising and marketing | 1,535 | 1,508 | 2% | 1,393 | 10% | 4,131 | 3,856 | 7% | |
| Data processing and communications | 2,206 | 2,299 | -4% | 1,983 | 11% | 6,626 | 5,488 | 21% | |
| Professional fees | 1,567 | 1,315 | 19% | 1,440 | 9% | 4,195 | 4,184 | 0% | |
| FDIC assessment | 1,135 | 1,080 | 5% | 818 | 39% | 3,238 | 2,370 | 37% | |
| Merger and integration expenses | 66 | 50 | 32% | 931 | -93% | 290 | 2,621 | -89% | |
| Credit related expenses | 3,531 | 3,016 | 17% | 2,646 | 33% | 7,969 | 6,564 | 21% | |
| Other | 3,396 | 3,601 | -6% | 3,912 | -13% | 10,555 | 11,161 | -5% | |
| Total noninterest expense | 39,420 | 37,739 | 4% | 35,746 | 10% | 113,434 | 103,450 | 10% | |
| Income before income taxes | 35,600 | 37,247 | -4% | 38,669 | -8% | 109,608 | 105,036 | 4% | |
| Income tax provision | 14,180 | 14,935 | -5% | 15,117 | -6% | 43,680 | 41,352 | 6% | |
| Net income | $ 21,420 | $ 22,312 | -4% | $ 23,552 | -9% | $ 65,928 | $ 63,684 | 4% | |
| | | | | | | | | | |
| Earnings Per Common Share: | | | | | | | | | |
| Basic | $ 0.27 | $ 0.28 | | $ 0.30 | | $ 0.83 | $ 0.81 | | |
| Diluted | $ 0.27 | $ 0.28 | | $ 0.30 | | $ 0.83 | $ 0.80 | | |
| | | | | | | | | | |
| Average Shares Outstanding: | | | | | | | | | |
| Basic | 79,493,917 | 79,490,767 | | 79,223,636 | | 79,486,958 | 78,914,360 | | |
| Diluted | 79,601,075 | 79,614,046 | | 79,334,865 | | 79,617,317 | 79,122,060 | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | Three Months Ended | Nine Months Ended | | |
| | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 9/30/2014 | 9/30/2013 | | |
| | | | | | | | | | |
| Net Income | $ 21,420 | $ 22,312 | $ 22,196 | $ 18,071 | $ 23,552 | $ 65,928 | $ 63,684 | | |
| Add back: Income tax | 14,180 | 14,935 | 14,564 | 11,047 | 15,117 | 43,680 | 41,352 | | |
| Add back: Provision for loan losses | 4,256 | 2,996 | 3,026 | 10,950 | 744 | 10,278 | 9,050 | | |
| Pre-tax, pre-provision income (PTPP) 1 | $ 39,856 | $ 40,243 | $ 39,786 | $ 40,068 | $ 39,413 | $ 119,886 | $ 114,086 | | |
| PTPP to average assets (annualized) | 2.32% | 2.36% | 2.44% | 2.51% | 2.56% | 2.37% | 2.96% | | |
| | | | | | | | | | |
| 1 While pre-tax, pre-provision income is a non-GAAP performance measure, we believe it is a useful measure in analyzing underlying performance trends. It is the level of earnings adjusted to exclude the impact of income tax and provision expense. | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | At or for the Three Months Ended
(Annualized) | | | At or for the Nine Months Ended (Annualized) | | |
| Profitability measures: | 9/30/2014 | 6/30/2014 | 9/30/2013 | | | 9/30/2014 | 9/30/2013 | | |
| ROA | 1.25% | 1.31% | 1.53% | | | 1.30% | 1.43% | | |
| ROE | 9.97% | 10.59% | 11.85% | | | 10.46% | 10.87% | | |
| Return on average tangible equity 2 | 11.43% | 12.18% | 13.90% | | | 12.03% | 12.52% | | |
| Net interest margin | 4.15% | 4.20% | 4.42% | | | 4.21% | 4.46% | | |
| Efficiency ratio | 49.73% | 48.39% | 47.56% | | | 48.62% | 47.56% | | |
| | | | | | | | | | |
| 2 Average tangible equity is calculated by subtracting average goodwill and average core deposit intangibles assets from average stockholders' equity. This is non-GAAP measure that we believe provides investors wth information that is useful in understanding our financial performance and position. | | |
| | | | | | | | |
| | | | | | | | | | |
| | Three Months Ended | Three Months Ended | Three Months Ended |
| | 9/30/2014 | 6/30/2014 | 9/30/2013 |
| | | | | | | | | | |
| | | Interest | Annualized | | Interest | Annualized | | Interest | Annualized |
| | Average | Income/ | Average | Average | Income/ | Average | Average | Income/ | Average |
| | Balance | Expense | Yield/Cost | Balance | Expense | Yield/Cost | Balance | Expense | Yield/Cost |
| INTEREST EARNING ASSETS: | | | | | | | | | |
| | | | | | | | | | |
| Loans receivable, including loans held for sale | $ 5,434,815 | $ 72,437 | 5.29% | $ 5,289,059 | $ 71,687 | 5.44% | $ 4,771,022 | $ 67,747 | 5.63% |
| Securities available for sale | 734,282 | 3,999 | 2.18% | 721,270 | 4,078 | 2.26% | 714,660 | 3,802 | 2.13% |
| FRB and FHLB stock and other investments | 332,643 | 648 | 0.76% | 426,924 | 668 | 0.62% | 291,672 | 486 | 0.65% |
| Term Federal funds sold | -- | -- | 0.00% | 13,407 | 20 | 0.60% | -- | -- | N/A |
| Total interest earning assets | $ 6,501,740 | $ 77,084 | 4.71% | $ 6,450,660 | $ 76,453 | 4.75% | $ 5,777,354 | $ 72,035 | 4.95% |
| | | | | | | | | | |
| INTEREST BEARING LIABILITIES: | | | | | | | | | |
| Deposits: | | | | | | | | | |
| Demand, interest-bearing | $ 1,492,175 | $ 2,558 | 0.68% | $ 1,483,473 | $ 2,499 | 0.68% | $ 1,276,732 | $ 1,927 | 0.60% |
| Savings | 202,785 | 496 | 0.97% | 207,312 | 539 | 1.04% | 204,049 | 668 | 1.30% |
| Time deposits: | | | | | | | | | |
| $100,000 or more | 1,601,436 | 3,094 | 0.77% | 1,626,200 | 2,984 | 0.74% | 1,380,962 | 2,361 | 0.68% |
| Other | 677,474 | 1,270 | 0.74% | 695,740 | 1,250 | 0.72% | 677,352 | 1,003 | 0.59% |
| Total time deposits | 2,278,910 | 4,365 | 0.76% | 2,321,940 | 4,234 | 0.73% | 2,058,314 | 3,364 | 0.65% |
| Total interest bearing deposits | 3,973,870 | 7,419 | 0.74% | 4,012,725 | 7,272 | 0.73% | 3,539,095 | 5,959 | 0.67% |
| FHLB advances | 462,434 | 1,373 | 1.18% | 445,835 | 1,311 | 1.18% | 422,084 | 1,251 | 1.18% |
| Other borrowings | 40,533 | 385 | 3.72% | 40,490 | 380 | 3.71% | 48,273 | 465 | 3.77% |
| Total interest bearing liabilities | 4,476,837 | $ 9,177 | 0.81% | 4,499,050 | $ 8,963 | 0.80% | 4,009,452 | $ 7,675 | 0.76% |
| Noninterest bearing demand deposits | 1,483,966 | | | 1,437,860 | | | 1,306,308 | | |
| Total funding liabilities/cost of funds | $ 5,960,803 | | 0.61% | $ 5,936,910 | | 0.61% | $ 5,315,760 | | 0.57% |
| Net interest income/net interest spread | | $ 67,907 | 3.89% | | $ 67,490 | 3.95% | | $ 64,360 | 4.19% |
| Net interest margin | | | 4.15% | | | 4.20% | | | 4.42% |
| Net interest margin, excluding effect of nonaccrual loan income (expense) | | | 4.14% | | | 4.18% | | | 4.42% |
| Net interest margin, excluding effect of nonaccrual loan income (expense) and prepayment fee income | | | 4.10% | | | 4.16% | | | 4.37% |
| | | | | | | | | | |
| Nonaccrual loan income (reversed) recognized | | $ 63 | | | $ 211 | | | $ (153) | |
| Prepayment fee income received | | 608 | | | 302 | | | 580 | |
| Net | | $ 671 | | | $ 513 | | | $ 427 | |
| | | | | | | | | | |
| Cost of deposits: | | | | | | | | | |
| Noninterest bearing demand deposits | $ 1,483,966 | $ -- | | $ 1,437,860 | $ -- | | $ 1,306,308 | $ -- | |
| Interest bearing deposits | 3,973,870 | 7,419 | 0.74% | 4,012,725 | 7,272 | 0.73% | 3,539,095 | 5,959 | 0.67% |
| Total deposits | $ 5,457,836 | $ 7,419 | 0.54% | $ 5,450,585 | $ 7,272 | 0.54% | $ 4,845,403 | $ 5,959 | 0.49% |
| | | | | | | | | | . |
| | | | | | | | | | |
| | Nine Months Ended | Nine Months Ended | | | |
| | 9/30/2014 | 9/30/2013 | | | |
| | | | | | | | | | |
| | | Interest | Annualized | | Interest | Annualized | | | |
| | Average | Income/ | Average | Average | Income/ | Average | | | |
| | Balance | Expense | Yield/Cost | Balance | Expense | Yield/Cost | | | |
| INTEREST EARNING ASSETS: | | | | | | | | | |
| | | | | | | | | | |
| Loans receivable, including loans held for sale | $ 5,303,478 | $ 212,818 | 5.37% | $ 4,588,464 | $ 196,249 | 5.72% | | | |
| Securities available for sale | 718,291 | 12,171 | 2.26% | 704,124 | 10,755 | 2.04% | | | |
| FRB and FHLB stock and other investments | 339,828 | 1,881 | 0.73% | 282,120 | 1,153 | 0.54% | | | |
| Federal funds sold | 4,469 | 20 | 0.60% | -- | -- | N/A | | | |
| Total interest earning assets | $ 6,366,066 | $ 226,890 | 4.76% | $ 5,574,708 | $ 208,157 | 4.99% | | | |
| | | | | | | | | | |
| INTEREST BEARING LIABILITIES: | | | | | | | | | |
| Deposits: | | | | | | | | | |
| Demand, interest-bearing | $ 1,456,348 | $ 7,335 | 0.67% | $ 1,276,195 | $ 5,736 | 0.60% | | | |
| Savings | 209,121 | 1,635 | 1.05% | 192,006 | 2,144 | 1.49% | | | |
| Time deposits: | | | | | | | | | |
| $100,000 or more | 1,596,416 | 8,757 | 0.73% | 1,265,877 | 6,066 | 0.64% | | | |
| Other | 679,114 | 3,654 | 0.72% | 675,239 | 3,068 | 0.61% | | | |
| Total time deposits | 2,275,530 | 12,411 | 0.73% | 1,941,116 | 9,134 | 0.63% | | | |
| Total interest bearing deposits | 3,940,999 | 21,381 | 0.73% | 3,409,317 | 17,014 | 0.67% | | | |
| FHLB advances | 443,346 | 3,894 | 1.17% | 422,205 | 3,693 | 1.17% | | | |
| Other borrowings | 44,431 | 1,252 | 3.71% | 44,721 | 1,271 | 3.75% | | | |
| Total interest bearing liabilities | 4,428,776 | $ 26,527 | 0.80% | 3,876,243 | $ 21,978 | 0.76% | | | |
| Non-interest bearing demand deposits | 1,425,718 | | | 1,220,608 | | | | | |
| Total funding liabilities / cost of funds | $ 5,854,494 | | 0.61% | $ 5,096,851 | | 0.58% | | | |
| Net interest income / net interest spread | | $ 200,363 | 3.96% | | $ 186,179 | 4.23% | | | |
| Net interest margin | | | 4.21% | | | 4.46% | | | |
| Net interest margin, excluding effect of nonaccrual loan income (expense) | | | 4.20% | | | 4.46% | | | |
| Net interest margin, excluding effect of nonaccrual loan income (expense) and prepayment fee income | | | 4.17% | | | 4.44% | | | |
| | | | | | | | | | |
| Nonaccrual loan income (reversed) recognized | | $ 138 | | | $ 6 | | | | |
| Prepayment fee income received | | 1,523 | | | 948 | | | | |
| Net | | $ 1,661 | | | $ 954 | | | | |
| | | | | | | | | | |
| Cost of deposits: | | | | | | | | | |
| Non-interest bearing demand deposits | $ 1,425,718 | $ -- | | $ 1,220,608 | $ -- | | | | |
| Interest bearing deposits | 3,940,999 | 21,381 | 0.73% | 3,409,317 | 17,014 | 0.67% | | | |
| Total deposits | $ 5,366,717 | $ 21,381 | 0.53% | $ 4,629,925 | $ 17,014 | 0.49% | | | |
| | | | | | | | | | |
| | Three Months Ended | Nine Months Ended |
| | 9/30/2014 | 6/30/2014 | %
change | 9/30/2013 | %
change | 9/30/2014 | 9/30/2013 | %
change |
| AVERAGE BALANCES | | | | | | | | |
| Loans receivable, including loans held for sale | $ 5,434,815 | $ 5,289,059 | 3% | $ 4,771,022 | 14% | $5,303,478 | $ 4,588,464 | 16% |
| Investments | 1,066,925 | 1,161,601 | -8% | 1,006,332 | 6% | 1,062,588 | 986,244 | 8% |
| Interest earning assets | 6,501,740 | 6,450,660 | 1% | 5,777,354 | 13% | 6,366,066 | 5,574,708 | 14% |
| Total assets | 6,867,465 | 6,821,827 | 1% | 6,160,132 | 11% | 6,739,533 | 5,924,397 | 14% |
| | | | | | | | | |
| Interest bearing deposits | 3,973,870 | 4,012,725 | -1% | 3,539,095 | 12% | 3,940,999 | 3,409,317 | 16% |
| Interest bearing liabilities | 4,476,837 | 4,499,050 | 0% | 4,009,452 | 12% | 4,428,776 | 3,876,243 | 14% |
| Noninterest bearing demand deposits | 1,483,966 | 1,437,860 | 3% | 1,306,308 | 14% | 1,425,718 | 1,220,608 | 17% |
| Stockholders' equity | 859,606 | 842,837 | 2% | 794,737 | 8% | 840,743 | 781,159 | 8% |
| Net interest earning assets | 2,024,903 | 1,951,610 | 4% | 1,767,902 | 15% | 1,937,290 | 1,698,465 | 14% |
| | | | | | | | | |
| | 9/30/2014 | 6/30/2014 | % change | 12/31/2013 | % change | 9/30/2013 | % change | |
| LOAN PORTFOLIO COMPOSITION: | | | | | | | | |
| Commercial loans | $ 1,023,924 | $ 1,070,196 | -4% | $ 1,073,778 | -5% | $ 1,068,844 | -4% | |
| Real estate loans | 4,317,960 | 4,184,298 | 3% | 3,904,059 | 11% | 3,736,225 | 16% | |
| Consumer and other loans | 92,362 | 93,822 | -2% | 98,507 | -6% | 95,693 | -3% | |
| Loans outstanding | 5,434,246 | 5,348,316 | 2% | 5,076,344 | 7% | 4,900,762 | 11% | |
| Unamortized deferred loan fees - net of costs | (1,402) | (1,259) | -11% | (2,168) | 35% | (1,823) | 23% | |
| Loans, net of deferred loan fees and costs | 5,432,844 | 5,347,057 | 2% | 5,074,176 | 7% | 4,898,939 | 11% | |
| Allowance for loan losses | (68,232) | (66,870) | -2% | (67,320) | -1% | (65,715) | -4% | |
| Loan receivable, net | $ 5,364,612 | $ 5,280,187 | 2% | $ 5,006,856 | 7% | $ 4,833,224 | 11% | |
| | | | | | | | | |
| REAL ESTATE LOANS BY PROPERTY TYPE: | 9/30/2014 | 6/30/2014 | % change | 12/31/2013 | % change | 9/30/2013 | % change | |
| Retail buildings | $ 1,233,161 | $ 1,229,485 | 0% | $ 1,140,103 | 8% | $ 1,089,898 | 13% | |
| Hotels/motels | 846,921 | 810,442 | 5% | 720,175 | 18% | 667,206 | 27% | |
| Gas stations/car washes | 582,725 | 546,659 | 7% | 522,198 | 12% | 523,368 | 11% | |
| Mixed-use facilities | 353,395 | 320,117 | 10% | 312,156 | 13% | 297,506 | 19% | |
| Warehouses | 443,418 | 421,266 | 5% | 383,979 | 15% | 362,700 | 22% | |
| Multifamily | 197,902 | 194,592 | 2% | 181,503 | 9% | 171,489 | 15% | |
| Other | 660,438 | 661,737 | 0% | 643,945 | 3% | 624,058 | 6% | |
| Total | $ 4,317,960 | $ 4,184,298 | 3% | $ 3,904,059 | 11% | $ 3,736,225 | 16% | |
| | | | | | | | | |
| DEPOSIT COMPOSITION | 9/30/2014 | 6/30/2014 | % change | 12/31/2013 | % change | 9/30/2013 | % change | |
| Noninterest bearing demand deposits | $ 1,503,275 | $ 1,512,423 | -1% | $ 1,399,454 | 7% | $ 1,362,675 | 10% | |
| Money market and other | 1,537,467 | 1,449,771 | 6% | 1,376,068 | 12% | 1,267,113 | 21% | |
| Saving deposits | 199,953 | 203,790 | -2% | 222,446 | -10% | 228,073 | -12% | |
| Time deposits of $100,000 or more | 1,595,213 | 1,624,340 | -2% | 1,499,248 | 6% | 1,475,321 | 8% | |
| Other time deposits | 673,846 | 680,064 | -1% | 650,841 | 4% | 687,920 | -2% | |
| Total deposit balances | $ 5,509,754 | $ 5,470,388 | 1% | $ 5,148,057 | 7% | $ 5,021,102 | 10% | |
| | | | | | | | | |
| DEPOSIT COMPOSITION (%) | 9/30/2014 | 6/30/2014 | 12/31/2013 | 9/30/2013 | | | | |
| Noninterest bearing demand deposits | 27.3% | 27.7% | 27.2% | 27.2% | | | | |
| Money market and other | 27.9% | 26.5% | 26.7% | 25.2% | | | | |
| Saving deposits | 3.6% | 3.7% | 4.3% | 4.5% | | | | |
| Time deposits of $100,000 or more | 29.0% | 29.7% | 29.1% | 29.4% | | | | |
| Other time deposits | 12.2% | 12.4% | 12.7% | 13.7% | | | | |
| Total deposit balances | 100.0% | 100.0% | 100.0% | 100.0% | | | | |
| | | | | | | | | |
| | | | | | | | | |
| CAPITAL RATIOS | 9/30/2014 | 6/30/2014 | 12/31/2013 | 9/30/2013 | | | | |
| Total stockholders' equity | $ 864,648 | $ 852,609 | $ 809,374 | $ 801,230 | | | | |
| Tier 1 risk-based capital ratio | 13.73% | 13.71% | 13.66% | 13.64% | | | | |
| Total risk-based capital ratio | 14.93% | 14.90% | 14.90% | 14.89% | | | | |
| Tier 1 leverage ratio | 11.80% | 11.66% | 11.97% | 12.06% | | | | |
| Total risk weighted assets | $ 5,807,138 | $ 5,713,242 | 5,498,694 | 5,330,009 | | | | |
| Book value per common share | $ 10.87 | $ 10.72 | $ 10.18 | $ 10.11 | | | | |
| Tangible common equity to tangible assets3 | 11.07% | 10.99% | 10.97% | 10.87% | | | | |
| Tangible common equity per share3 | $ 9.49 | $ 9.34 | $ 8.79 | $ 8.52 | | | | |
| | | | | | | | | |
| | | | | | | | | |
| 3 Tangible common equity to tangible assets is a non-GAAP financial measure that represents common equity less goodwill and core deposit intangible assets, net divided by total assets less goodwill and core deposit intangible assets, net. Management reviews tangible common equity to tangible assets in evaluating the Company's capital levels and has included this ratio in response to market participant interest in tangible common equity as a measure of capital. | |
| | | | | | | | | |
| Reconciliation of GAAP financial measures to non-GAAP financial measures: | | | | | | | | |
| | | | | | | | | |
| | 9/30/2014 | 6/30/2014 | 12/31/2013 | 9/30/2013 | | | | |
| Total stockholders' equity | $ 864,648 | $ 852,609 | $ 809,374 | $ 801,230 | | | | |
| Less: Common stock warrant | (378) | (378) | (378) | (378) | | | | |
| Goodwill and core deposit intangible assets, net | (109,612) | (109,936) | (110,585) | (125,444) | | | | |
| Tangible common equity | $ 754,658 | $ 742,295 | $ 698,411 | $ 675,408 | | | | |
| | | | | | | | | |
| Total assets | $ 6,927,502 | $ 6,866,291 | $ 6,475,199 | $ 6,340,987 | | | | |
| Less: Goodwill and core deposit intangible assets, net | (109,612) | (109,936) | (110,585) | (125,444) | | | | |
| Tangible assets | $ 6,817,890 | $ 6,756,355 | $ 6,364,614 | $ 6,215,543 | | | | |
| | | | | | | | | |
| Common shares outstanding | 79,497,331 | 79,493,732 | 79,441,525 | 79,247,719 | | | | |
| | | | | | | | | |
| Tangible common equity to tangible assets | 11.07% | 10.99% | 10.97% | 10.87% | | | | |
| Tangible common equity per share | $ 9.49 | $ 9.34 | $ 8.79 | $ 8.52 | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | Three Months Ended | Nine Months Ended | |
| ALLOWANCE FOR LOAN LOSSES: | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 9/30/2014 | 9/30/2013 | |
| Balance at beginning of period | $ 66,870 | $ 65,699 | $ 67,320 | $ 65,715 | $ 71,675 | $ 67,320 | $ 66,941 | |
| Provision for loan losses | 4,256 | 2,996 | 3,026 | 10,950 | 744 | 10,278 | 9,050 | |
| Recoveries | 772 | 946 | 616 | 605 | 1,086 | 2,334 | 1,843 | |
| Charge offs | (3,666) | (2,771) | (5,263) | (9,950) | (7,790) | (11,700) | (12,119) | |
| Balance at end of period | $ 68,232 | $ 66,870 | $ 65,699 | $ 67,320 | $ 65,715 | $ 68,232 | $ 65,715 | |
| Net charge offs/average gross loans (annualized) | 0.21% | 0.14% | 0.36% | 0.75% | 0.56% | 0.24% | 0.30% | |
| | | | | | | | | |
| | Three Months Ended | Nine Months Ended | |
| NET CHARGED OFF LOANS BY TYPE | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 9/30/2014 | 9/30/2013 | |
| | | | | | | | | |
| Real estate loans | $ 1,100 | $ 765 | $ 154 | $ 288 | $ 6,129 | $ 2,019 | $ 7,887 | |
| Commercial loans | 1,803 | 1,255 | 4,414 | 9,139 | 119 | $ 7,472 | 1,953 | |
| Consumer loans | (9) | (195) | 79 | (82) | (44) | $ (125) | (64) | |
| Charge offs excluding Acquired Credit Impaired Loans | 2,894 | 1,825 | 4,647 | 9,345 | 6,204 | 9,366 | 9,776 | |
| Charge offs on Acquired Credit Impaired Loans | -- | -- | -- | -- | 500 | -- | 500 | |
| Total net charge offs | $ 2,894 | $ 1,825 | $ 4,647 | $ 9,345 | $ 6,704 | $ 9,366 | $ 10,276 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| NONPERFORMING ASSETS | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | | | |
| Delinquent loans on nonaccrual status4 | $ 39,564 | $ 42,651 | $ 47,314 | $ 39,154 | $ 36,129 | | | |
| Delinquent loans 90 days or more on accrual status5 | -- | -- | -- | 5 | 948 | | | |
| Accruing restructured loans | 56,061 | 43,906 | 37,527 | 33,903 | 36,018 | | | |
| Total nonperforming loans | 95,625 | 86,557 | 84,841 | 73,062 | 73,095 | | | |
| Other real estate owned | 23,162 | 20,610 | 20,001 | 24,288 | 27,582 | | | |
| Total nonperforming assets | $ 118,787 | $ 107,167 | $ 104,842 | $ 97,350 | $ 100,677 | | | |
| Nonperforming assets/total assets | 1.71% | 1.56% | 1.57% | 1.50% | 1.59% | | | |
| Nonperforming assets/loans receivable & OREO | 2.18% | 2.00% | 2.01% | 1.91% | 2.04% | | | |
| Nonperforming assets/total capital | 13.74% | 12.57% | 12.60% | 12.03% | 12.57% | | | |
| Nonperforming loans/loans receivable | 1.76% | 1.62% | 1.63% | 1.44% | 1.49% | | | |
| Nonaccrual loans/loans receivable | 0.73% | 0.80% | 0.91% | 0.77% | 0.74% | | | |
| Allowance for loan losses/loans receivable | 1.26% | 1.25% | 1.27% | 1.33% | 1.34% | | | |
| Allowance for loan losses/nonaccrual loans | 172.46% | 156.78% | 138.86% | 171.94% | 181.89% | | | |
| Allowance for loan losses/nonperforming loans | 71.35% | 77.26% | 77.44% | 92.14% | 89.90% | | | |
| Allowance for loan losses/nonperforming assets | 57.44% | 62.40% | 62.66% | 69.15% | 65.27% | | | |
| | |
| 4 Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $28.1 million, $30.0 million, $31.2 million, $27.5 million and $25.2 million at September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 2013, respectively. | |
| 5 Excludes Acquired Credit Impaired Loans totaling $32.7 million, $43.7 million, $46.0 million, $43.8 million and $38.6 million at September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 2013, respectively. | |
| | | | | | | | | |
| BREAKDOWN OF ACCRUING RESTRUCTURED LOANS BY TYPE: | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | | | |
| Retail buildings | $ 5,979 | $ 6,021 | $ 5,542 | $ 5,576 | $ 6,777 | | | |
| Hotels/motels | 8,246 | 8,323 | 8,401 | 8,477 | 8,550 | | | |
| Gas stations/car washes | -- | -- | -- | -- | -- | | | |
| Mixed-use facilities | 792 | 797 | 796 | 802 | 807 | | | |
| Warehouses | 5,939 | 5,922 | 812 | 482 | 485 | | | |
| Multifamily | -- | -- | -- | -- | -- | | | |
| Other6 | 35,105 | 22,843 | 21,976 | 18,566 | 19,399 | | | |
| Total | $ 56,061 | $ 43,906 | $ 37,527 | $ 33,903 | $ 36,018 | | | |
| | | | | | | | | |
| 6 Includes commercial business and other loans | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| DELINQUENT LOANS LESS THAN 90 DAYS PAST DUE | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | | | |
| | | | | | | | | |
| Legacy | | | | | | | | |
| 30 - 59 days | $ 3,936 | $ 3,170 | $ 1,700 | $ 2,209 | $ 1,705 | | | |
| 60 - 89 days | 1,284 | 210 | 445 | 266 | 732 | | | |
| Total delinquent loans less than 90 days past due - legacy | $ 5,220 | $ 3,380 | $ 2,145 | $ 2,475 | $ 2,437 | | | |
| | | | | | | | | |
| Acquired | | | | | | | | |
| 30 - 59 days | $ 6,911 | $ 6,403 | $ 4,916 | $ 5,113 | $ 4,013 | | | |
| 60 - 89 days | 283 | 640 | 3 | 2,506 | 1,663 | | | |
| Total delinquent loans less than 90 days past due - acquired | $ 7,194 | $ 7,043 | $ 4,919 | $ 7,619 | $ 5,676 | | | |
| | | | | | | | | |
| Total delinquent loans less than 90 days past due | $ 12,414 | $ 10,423 | $ 7,064 | $ 10,094 | $ 8,113 | | | |
| | | | | | | | | |
| DELINQUENT LOANS LESS THAN 90 DAYS PAST DUE BY TYPE | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | | | |
| | | | | | | | | |
| Legacy | | | | | | | | |
| Real estate loans | $ 2,768 | $ 1,675 | $ 760 | $ 1,375 | $ 1,664 | | | |
| Commercial loans | 2,221 | 1,640 | 1,338 | 1,024 | 744 | | | |
| Consumer loans | 231 | 65 | 47 | 76 | 29 | | | |
| Total delinquent loans less than 90 days past due - legacy | $ 5,220 | $ 3,380 | $ 2,145 | $ 2,475 | $ 2,437 | | | |
| | | | | | | | | |
| Acquired | | | | | | | | |
| Real estate loans | $ 6,297 | $ 6,051 | $ 4,036 | $ 6,034 | $ 4,616 | | | |
| Commercial loans | 884 | 860 | 598 | 1,228 | 833 | | | |
| Consumer loans | 13 | 132 | 285 | 357 | 227 | | | |
| Total delinquent loans less than 90 days past due - acquired | $ 7,194 | $ 7,043 | $ 4,919 | $ 7,619 | $ 5,676 | | | |
| | | | | | | | | |
| Total delinquent loans less than 90 days past due | $ 12,414 | $ 10,423 | $ 7,064 | $ 10,094 | $ 8,113 | | | |
| | | | | | | | | |
| | | | | | | | | |
| NONACCRUAL LOANS BY TYPE | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | | | |
| | | | | | | | | |
| Real estate loans | $ 29,001 | $ 27,815 | $ 34,070 | $ 28,083 | $ 26,616 | | | |
| Commercial loans | 9,486 | 13,553 | 12,216 | 10,141 | 8,743 | | | |
| Consumer loans | 1,077 | 1,283 | 1,028 | 930 | 770 | | | |
| Total non-accrual loans | $ 39,564 | $ 42,651 | $ 47,314 | $ 39,154 | $ 36,129 | | | |
| | | | | | | | | |
| CRITICIZED LOANS | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | | | |
| Legacy | | | | | | | | |
| Special mention | $ 88,314 | $ 55,659 | $ 52,159 | $ 46,480 | $ 61,804 | | | |
| Substandard | 113,865 | 112,357 | 111,529 | 120,163 | 100,551 | | | |
| Doubtful | 470 | 1,227 | 3,332 | 359 | 8 | | | |
| Loss | -- | -- | -- | -- | -- | | | |
| Total criticized loans - legacy | $ 202,649 | $ 169,243 | $ 167,020 | $ 167,002 | $ 162,363 | | | |
| | | | | | | | | |
| Acquired | | | | | | | | |
| Special mention | $ 25,081 | $ 36,811 | $ 41,395 | $ 43,009 | $ 49,827 | | | |
| Substandard | 114,347 | 124,618 | 134,660 | 138,337 | 143,149 | | | |
| Doubtful | 3,086 | 3,980 | 2,376 | 6,100 | 2,045 | | | |
| Loss | -- | 76 | 1,445 | 1,402 | 990 | | | |
| Total criticized loans - acquired | $ 142,514 | $ 165,485 | $ 179,876 | $ 188,848 | $ 196,011 | | | |
| | | | | | | | | |
| Total criticized loans | $ 345,163 | $ 334,728 | $ 346,896 | $ 355,850 | $ 358,374 | | | |
CONTACT: Angie Yang
SVP, Investor Relations
213-251-2219
angie.yang@BBCNbank.com