EXHIBIT 99.1
BBCN Bancorp Reports 2014 Fourth Quarter and Full-Year Financial Results
Q4 2014 Summary:
- Net income totals $22.7 million, or $0.29 per diluted common share
- New loan originations for the quarter total $304 million
- Loans receivable increase to $5.57 billion, reflecting a 2% increase over September 30, 2014 and a 10% increase over December 31, 2013
- Total deposits increase to $5.69 billion, reflecting a 3% increase during the quarter and an 11% increase for the full year
- Total assets increase to $7.14 billion, reflecting a 3% increase over the preceding quarter and a 10% increase for 2014
LOS ANGELES, Jan. 26, 2015 (GLOBE NEWSWIRE) -- BBCN Bancorp, Inc. (the "Company") (Nasdaq:BBCN), the holding company of BBCN Bank (the "Bank"), today reported net income of $22.7 million, or $0.29 per diluted common share, for the three months ended December 31, 2014. This reflects a 6% increase over net income of $21.4 million, or $0.27 per diluted common share, for the preceding 2014 third quarter and a 26% increase over $18.1 million, or $0.23 per diluted common share, for the year-ago fourth quarter.
For the full year, net income totaled $88.6 million, or $1.11 per diluted common shares, reflecting an 8% increase over net income of $81.8 million, or $1.03 per diluted common share, for 2013.
"BBCN delivered a solid 2014 fourth quarter, notwithstanding the headwinds of the low interest rate environment and diminishing purchase accounting benefit," said Kevin S. Kim, Chairman and Chief Executive Officer of BBCN Bancorp, Inc. "New loan production amounted to $304 million for the final quarter of the year, contributing to a 10% increase in loans receivable over year-end 2013. In total, we originated $1.33 billion in new loans during 2014, an increase of 17% over $1.14 billion in 2013. Deposits also grew at a strong pace, up 3% during the quarter and 11% for the full year. The higher cash and cash equivalent balance at year end as a result of the strong deposit growth contributed to the continuing pressures on our net interest margin. Overall, we are pleased with the earnings growth for the quarter and full year, particularly in light of the considerable investments that we are making to transform the franchise to a more diversified financial institution.
"2014 was a year of building stability and fortifying the foundation of BBCN. We strengthened the executive management and Board of Directors with a number of key additions, which significantly enhanced our experience and leadership capabilities. In addition to the increased financial support of our customers and communities, as well as the progress in expanding our product offering, we marked a new chapter in the history of BBCN by becoming the first Korean-American bank to establish a presence in Korea. This is a very exciting time for us as we believe BBCN is about to embark on a journey to new frontiers in the years ahead. On behalf of the entire Board and management team, we reaffirm our commitment to enhancing the value for our customers, employees and shareholders, and look forward to keeping everyone apprised of BBCN's ongoing progress," said Kim.
Financial Highlights
| (dollars in thousands, except per share data) | At or for the Three Months Ended |
| | 12/31/2014 | 9/30/2014 | 12/31/2013 |
| Net income | $ 22,687 | $ 21,420 | $ 18,071 |
| Diluted earnings per share | $ 0.29 | $ 0.27 | $ 0.23 |
| Net interest income before provision for loan losses | $ 66,234 | $ 67,907 | $ 66,876 |
| Net interest margin | 3.90% | 4.15% | 4.45% |
| Noninterest income | $ 12,050 | $ 11,369 | $ 11,356 |
| Noninterest expense | $ 39,010 | $ 39,420 | $ 38,164 |
| Net loans receivable | $ 5,499,449 | $ 5,364,612 | $ 5,006,856 |
| Deposits | $ 5,693,452 | $ 5,509,754 | $ 5,148,057 |
| Nonaccrual loans (1) | $ 46,352 | $ 39,564 | $ 39,154 |
| ALLL to loans receivable | 1.22% | 1.26% | 1.33% |
| ALLL to nonaccrual loans (1) | 146.18% | 172.46% | 171.94% |
| ALLL to nonperforming assets (1) (2) | 53.87% | 57.44% | 69.15% |
| Provision for loan losses | $ 2,360 | $ 4,256 | $ 10,950 |
| Net charge offs | $ 2,834 | $ 2,894 | $ 9,345 |
| ROA | 1.28% | 1.25% | 1.13% |
| ROE | 10.42% | 9.97% | 8.92% |
| Efficiency ratio | 49.83% | 49.73% | 48.78% |
(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $28.9 million, $28.1 million and $27.5 million at December 31, 2014, September 30, 2014 and December 31, 2013, respectively.
(2) Nonperforming assets exclude acquired credit impaired loans totaling $30.4 million, $32.7 million and $43.8 million at December 31, 2014, September 30, 2014 and December 31, 2013, respectively.
Operating Results for the 2014 Fourth 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 December 31, 2014, September 30, 2014, and December 31, 2013 include the following pre-tax acquisition accounting adjustments related to past acquisitions:
| (Dollars in thousands) | Three Months Ended |
| | 12/31/2014 | 9/30/2014 | 12/31/2013 |
| Accretion of discount on acquired performing loans | $ 3,190.00 | $ 4,157.00 | $ 4,873.00 |
| Accretion of discount on acquired credit impaired loans | 1,670 | 1,863 | 2,480 |
| Amortization of premium on acquired FHLB borrowings | 96 | 95 | 94 |
| Accretion of discount on acquired subordinated debt | (41) | (41) | (107) |
| Amortization of premium on acquired time deposits | 105 | 125 | 369 |
| Increase to pre-tax income | $ 5,020 | $ 6,199 | $ 7,709 |
Net Interest Income and Net Interest Margin. Net interest income before provision for loan losses for the 2014 fourth quarter amounted to $66.2 million, compared with $67.9 million in the preceding third quarter of 2014 and $66.9 million in the prior-year fourth quarter. The Company attributed the decreases in net interest income, notwithstanding the solid expansion of its loans receivable over prior periods, to diminishing acquisition accounting adjustments, reversals of interest income related to nonaccrual loans and lower yields on interest earning assets. Overall, average loans receivable for the 2014 fourth quarter rose 1% over the preceding third quarter and increased 10% over the fourth quarter of 2013.
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 |
| | 12/31/2014 | 9/30/2014 | change | 12/31/2013 | change |
| Net interest margin, excluding the effect of acquisition accounting adjustments | 3.57% | 3.73% | (0.16)% | 3.87% | (0.30)% |
| Acquisition accounting adjustments | 0.33 | 0.42 | (0.09) | 0.58 | (0.25) |
| Net interest margin | 3.90% | 4.15% | (0.25)% | 4.45% | (0.55)% |
The net interest margin for the 2014 fourth quarter declined 25 basis points from the preceding third quarter to 3.90% and declined 16 basis points on a core basis, when excluding the effect of acquisition accounting adjustments. Compared with the year-ago fourth quarter, net interest margin for the 2014 fourth quarter declined 55 basis points and decreased 30 basis points on a core basis excluding the effect of acquisition accounting adjustments. The Company attributed the pressures on net interest margin to decreases in the weighted average yield on loans and a higher mix of cash and cash equivalents on its balance sheet.
The weighted average yield on loans and the impact of acquisition accounting adjustments are summarized in the following table:
| | Three Months Ended |
| | 12/31/2014 | 9/30/2014 | change | 12/31/2013 | change |
| Weighted average yield on loans, excluding the effect of acquisition accounting adjustments | 4.71% | 4.78% | (0.07)% | 4.90% | (0.19)% |
| Acquisition accounting adjustments | 0.40 | 0.51 | (0.11) | 0.69 | (0.29) |
| Weighted average yield on loans | 5.11% | 5.29% | (0.18)% | 5.59% | (0.48)% |
The weighted average yield on loans for the 2014 fourth quarter declined 18 basis points to 5.11% from the preceding third quarter. On a core basis excluding the effect of acquisition accounting adjustments, the weighted average yield on loans declined only 7 basis points. The weighted average yield on new loans originated during the 2014 fourth quarter increased to 4.39% from 4.31% in the preceding third quarter. Variable rate loans accounted for 52% of new loan originations for the 2014 fourth quarter, with fixed rate loans representing 48%. The Company noted that the 2014 fourth quarter was the second consecutive period in which variable rate loan volumes exceeded fixed rate loans. Compared with the prior-year period, the weighted average yield on loans for the 2014 fourth quarter decreased 48 basis points and 19 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:
| | 12/31/2014 | 9/30/2014 | change | 12/31/2013 | change |
| Fixed rate loans | | | | | |
| As a percentage of total loans | 52% | 51% | 1% | 48% | 4% |
| Weighted average contractual rate | 4.75% | 4.79% | (0.04)% | 4.99% | (0.24)% |
| Variable rate loans | | | | | |
| As a percentage of total loans | 48% | 49% | (1)% | 52% | (4)% |
| Weighted average contractual rate | 4.17% | 4.25% | (0.08)% | 4.37% | (0.20)% |
The declines in the weighted average contractual rate for the 2014 fourth quarter versus prior periods reflect what continues to be a highly competitive rate environment for fixed rate and variable 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 |
| | 12/31/2014 | 9/30/2014 | change | 12/31/2013 | change |
| Weighted average cost of deposits, excluding the effect of acquisition accounting adjustments | 0.56% | 0.55% | 0.01% | 0.52% | 0.04% |
| Acquisition accounting adjustments | (0.01) | (0.01) | — | (0.02) | 0.01 |
| Weighted average cost of deposits | 0.55% | 0.54% | 0.01% | 0.50% | 0.05% |
The weighted average cost of deposits for the 2014 fourth quarter rose by 1 basis point over the preceding third 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 fourth 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 fourth quarter rose 6% to $12.1 million from $11.4 million in both the preceding 2014 third and prior-year fourth quarters. The increase in noninterest income is largely attributable to the higher gain on sale of SBA loans in the 2014 fourth quarter, which amounted to $4.1 million, versus $3.6 million for the 2014 third quarter and $2.7 million for the year-ago fourth quarter.
Noninterest Expense. Total noninterest expense for the fourth quarter of 2014 declined 1% to $39.0 million from $39.4 million in the preceding 2014 third quarter, but increased 2% when compared with $38.2 million in the fourth quarter a year ago.
Salaries and employee benefits expense for the 2014 fourth quarter was relatively flat with the preceding third quarter, but increased 9% over the 2013 fourth quarter, reflecting an increase in FTEs to support BBCN's growing franchise and investments in new products and services to become a more diversified financial institution. The total number of FTEs as of December 31, 2014 was 915, compared with 911 as of September 30, 2014 and 835 as of December 31, 2013.
Credit related expenses, which previously were included in other expenses, amounted to $3.0 million for the 2014 fourth quarter, compared with $3.5 million in the preceding third quarter and $2.6 million in the year-ago fourth quarter.
Income Tax Provision. The effective tax rate for the 2014 third quarter was 38.5%, compared with 39.8% for the preceding 2014 third quarter and 37.9% for the 2013 fourth quarter.
Balance Sheet Summary
Loans receivable totaled $5.57 billion at December 31, 2014, reflecting a 2% increase over $5.43 billion at September 30, 2014, and a 10% increase for the full year over $5.07 billion at December 31, 2013.
Total new loan originations during the fourth quarter of 2014 amounted to $304.1 million, including SBA loan originations of $57.3 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 $48.3 million for the fourth quarter of 2014, compared with $40.0 million for the preceding 2014 third quarter. During the 2014 fourth quarter, the Company sold $48.4 million of its SBA loans held for sale.
Aggregate pay offs and pay downs for the 2014 fourth quarter amounted to $262.2 million for the quarter, compared with $312.0 million for the preceding third quarter and $209.7 million for the year-ago fourth quarter.
Total deposits amounted to $5.69 billion at December 31, 2014, reflecting a 3% increase over $5.51 billion at September 30, 2014, and an 11% increase over $5.15 billion at year-end 2013. The increase in total deposits from September 30, 2014 reflects a 3% increase in noninterest bearing demand deposits and an 8% increase in money market account balances, offset in part by strategic reductions in wholesale time deposits. Noninterest bearing deposits at December 31, 2014 totaled $1.54 billion and accounted for 27% of total deposits.
Credit Quality
The provision for loan losses for the 2014 fourth quarter was $2.4 million, compared with $4.3 million for the preceding 2014 third quarter and $11.0 million for the prior-year fourth 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 December 31, 2014, September 30, 2014, and December 31, 2013 is as follows:
| (Dollars in thousands) | 12/31/2014 | 9/30/2014 | 12/31/2013 |
| Legacy Loans (1) | $ 58,644 | $ 60,073 | $ 59,978 |
| Acquired Loans - Performing (2) | 1,767 | 1,973 | 2,564 |
| Acquired Loans - Credit Impaired (2) | 7,347 | 6,186 | 4,778 |
| Total ALLL | $ 67,758 | $ 68,232 | $ 67,320 |
| | | | |
| Loans Receivable | $ 5,567,207 | $ 5,432,844 | $ 5,074,176 |
| ALLL coverage ratio | 1.22% | 1.26% | 1.33% |
(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 December 31, 2014, September 30, 2014, and December 31, 2013:
| (Dollars in thousands) | 12/31/2014 | 9/30/2014 | 12/31/2013 |
| Special Mention (1) | $ 122,335 | $ 113,395 | $ 89,488 |
| Classified (1) | 224,062 | 231,768 | 266,360 |
| Criticized | $ 346,397 | $ 345,163 | $ 355,848 |
(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 December 31, 2014 totaled $46.4 million, or 0.83% of loans receivable, compared with $39.6 million, or 0.73% of loans receivable, at September 30, 2014 and $39.2 million, or 0.77% of loans receivable, at December 31, 2013. Accruing restructured loans totaled $57.1 million at December 31, 2014, compared with $56.1 million at September 30, 2014 and $33.9 million at December 31, 2013. Total nonperforming loans at December 31, 2014 amounted to $103.8 million, or 1.87% of loans receivable, compared with $95.6 million, or 1.76% of loans receivable, at September 30, 2014 and $73.1 million, or 1.44% of loans receivable, at December 31, 2013.
Nonperforming assets, including other real estate owned, totaled $125.8 million at December 31, 2014, or 1.76% of total assets, compared with $118.8 million, or 1.71% of total assets, at September 30, 2014, and $97.4 million, or 1.50% of total assets, at December 31, 2013.
Net loan charge-offs for the 2014 fourth quarter totaled $2.8 million and equaled 0.21% of average loans receivable on an annualized basis. This compares with net loan charge offs of $2.9 million and equaled 0.21% of average loans receivable on an annualized basis, for the preceding 2014 third quarter and $9.3 million, or 0.75% of average loans receivable on an annualized basis, for the year-ago fourth quarter.
The allowance for loan losses at December 31, 2014 was $67.8 million, or 1.22% of loans receivable (excluding loans held for sale), compared with $68.2 million, or 1.26%, at September 30, 2014 and $67.3 million, or 1.33%, at December 31, 2013. The coverage ratio of the allowance for loan losses to nonperforming loans (excluding acquired credit impaired loans) was 65.25% at December 31, 2014, versus 71.35% at September 30, 2014 and 92.14% at December 31, 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 $127.1 million at December 31, 2014, compared with $130.7 million at September 30, 2014 and $116.3 million at December 31, 2013.
Capital
At December 31, 2014, the Company continued to exceed all regulatory capital requirements to be classified as a "well-capitalized" institution, as summarized in the following table.
| | 12/31/2014 | 9/30/2014 | 12/31/2013 |
| Leverage Ratio | 11.62% | 11.80% | 11.97% |
| Tier 1 Risk-based Ratio | 13.64% | 13.72% | 13.66% |
| Total Risk-based Ratio | 14.80% | 14.93% | 14.90% |
Tangible common equity per share and as a percentage of tangible assets are summarized in the following table:
| | 12/31/2014 | 9/30/2014 | 12/31/2013 |
| Tangible common equity per share (1) | $9.72 | $9.49 | $8.79 |
| Tangible common equity to tangible assets (1) | 10.98% | 11.07% | 10.97% |
(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, January 27, 2015 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for the 2014 fourth quarter and full year. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international), and asking for the "BBCN Bancorp Conference Call." Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of BBCN Bancorp's website at www.BBCNbank.com. After the live webcast, a replay will remain available in the Investor Relations section of BBCN Bancorp's website for one year. A replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) through February 4, 2015, passcode 10058570.
About BBCN Bancorp, Inc.
BBCN Bancorp, Inc. is the holding company of BBCN Bank, the largest Korean-American bank in the nation with $7.1 billion in assets as of December 31, 2014. Headquartered in Los Angeles and serving a diverse mix of customers mirroring its communities, BBCN operates 50 branches in California, New York, New Jersey, Illinois, Washington and Virginia; six loan production offices in Seattle, Denver, Dallas, Atlanta, Northern California and Annandale, Virginia; and a representative office in Seoul, Korea. BBCN specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and business lending, SBA lending and international trade financing. BBCN Bank is a California-chartered bank and its deposits are insured by the FDIC to the extent provided by law. BBCN is an Equal Opportunity Lender.
Forward-Looking Statements
This press release may contain forward-looking statements, including statements about future operations and projected 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 | 12/31/2014 | 9/30/2014 | % change | 12/31/2013 | % change |
| | | | | | |
| Cash and due from banks | 462,160 | $ 443,320 | 4% | $ 316,705 | 46% |
| Securities available for sale, at fair value | 796,523 | 710,625 | 12% | 705,751 | 13% |
| Federal Home Loan Bank, Federal Reserve Bank stock and other investments | 28,708 | 28,744 | 0% | 28,324 | 1% |
| Loans held for sale, at the lower of cost or fair value | 26,296 | 45,695 | -42% | 44,115 | -40% |
| Loans receivable | 5,567,207 | 5,432,844 | 2% | 5,074,176 | 10% |
| Allowance for loan losses | (67,758) | (68,232) | 1% | (67,320) | -1% |
| Net loans receivable | 5,499,449 | 5,364,612 | 3% | 5,006,856 | 10% |
| Accrued interest receivable | 13,634 | 13,142 | 4% | 13,403 | 2% |
| Premises and equipment, net | 30,722 | 30,999 | -1% | 30,894 | -1% |
| Bank owned life insurance | 45,927 | 45,644 | 1% | 44,770 | 3% |
| Goodwill | 105,401 | 105,401 | 0% | 105,401 | 0% |
| Other intangible assets, net | 14,228 | 13,735 | 4% | 14,099 | 1% |
| Other assets | 117,282 | 125,889 | -7% | 164,881 | -29% |
| Total assets | 7,140,330 | $ 6,927,806 | 3% | $ 6,475,199 | 10% |
| | | | | | |
| Liabilities | | | | | |
| | | | | | |
| Deposits | 5,693,452 | $ 5,509,754 | 3% | $ 5,148,057 | 11% |
| Borrowings from Federal Home Loan Bank | 480,975 | 467,071 | 3% | 421,352 | 14% |
| Subordinated debentures | 42,158 | 42,117 | 0% | 57,410 | -27% |
| Accrued interest payable | 5,855 | 6,173 | -5% | 4,821 | 21% |
| Other liabilities | 35,117 | 38,043 | -8% | 34,185 | 3% |
| Total liabilities | 6,257,557 | 6,063,158 | 3% | 5,665,825 | 10% |
| | | | | | |
| Stockholders' Equity | | | | | |
| Common stock, $0.001 par value; authorized, 150,000,000 shares at December 31, 2014, September 30, 2014, and December 31, 2013; issued and outstanding, 79,503,552, 79,497,331, and 79,441,525 shares and at December 31, 2014, September 30, 2014, and December 31, 2013, respectively | 79 | 79 | 0% | 79 | 0% |
| Capital surplus | 541,589 | 541,406 | 0% | 540,876 | 0% |
| Retained earnings | 339,400 | 324,664 | 5% | 278,604 | 22% |
| Accumulated other comprehensive income, net | 1,705 | (1,501) | 214% | (10,185) | 117% |
| Total stockholders' equity | 882,773 | 864,648 | 2% | 809,374 | 9% |
| | | | | | |
| Total liabilities and stockholders' equity | $ 7,140,330 | $ 6,927,806 | 3% | $ 6,475,199 | 10% |
| | | | | | | | | |
| | | | | | | | | |
| | Three Months Ended | Twelve Months Ended |
| | 12/31/2014 | 9/30/2014 | % change | 12/31/2013 | % change | 12/31/2014 | 12/31/2013 | % change |
| | | | | | | | | |
| Interest income: | | | | | | | | |
| Interest and fees on loans | $ 70,999 | $ 72,437 | -2% | $ 70,435 | 1% | $ 283,817 | $ 266,684 | 6% |
| Interest on securities | 3,973 | 3,999 | -1% | 3,971 | 0% | 16,144 | 14,726 | 10% |
| Interest on federal funds sold and other investments | 795 | 648 | 23% | 510 | 56% | 2,696 | 1,663 | 62% |
| Total interest income | 75,767 | 77,084 | -2% | 74,916 | 1% | 302,657 | 283,073 | 7% |
| | | | | | | | | |
| Interest expense: | | | | | | | | |
| Interest on deposits | 7,797 | 7,419 | 5% | 6,307 | 24% | 29,178 | 23,321 | 25% |
| Interest on other borrowings | 1,736 | 1,758 | -1% | 1,733 | 0% | 6,882 | 6,697 | 3% |
| Total interest expense | 9,533 | 9,177 | 4% | 8,040 | 19% | 36,060 | 30,018 | 20% |
| | | | | | | | | |
| Net interest income before provision for loan losses | 66,234 | 67,907 | -2% | 66,876 | -1% | 266,597 | 253,055 | 5% |
| Provision for loan losses | 2,360 | 4,256 | -45% | 10,950 | -78% | 12,638 | 20,000 | -37% |
| Net interest income after provision for loan losses | 63,874 | 63,651 | 0% | 55,926 | 14% | 253,959 | 233,055 | 9% |
| | | | | | | | | |
| Noninterest income: | | | | | | | | |
| Service fees on deposit accounts | 3,398 | 3,456 | -2% | 3,720 | -9% | 13,686 | 12,838 | 7% |
| Net gains on sales of SBA loans | 4,062 | 3,578 | 14% | 2,699 | 51% | 13,174 | 11,515 | 14% |
| 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 | 47 | 29 | 62% | (45) | 204% | 513 | (102) | 603% |
| Other income and fees | 4,543 | 4,306 | 6% | 4,982 | -9% | 17,634 | 18,346 | -4% |
| Total noninterest income | 12,050 | 11,369 | 6% | 11,356 | 6% | 45,007 | 42,713 | 5% |
| | | | | | | | | |
| Noninterest expense: | | | | | | | | |
| Salaries and employee benefits | 19,273 | 19,346 | 0% | 17,719 | 9% | 75,701 | 66,805 | 13% |
| Occupancy | 5,070 | 4,722 | 7% | 4,470 | 13% | 19,130 | 17,676 | 8% |
| Furniture and equipment | 2,190 | 1,916 | 14% | 1,895 | 16% | 8,132 | 6,809 | 19% |
| Advertising and marketing | 1,295 | 1,535 | -16% | 1,328 | -2% | 5,426 | 5,184 | 5% |
| Data processing and communications | 2,270 | 2,206 | 3% | 2,107 | 8% | 8,896 | 7,595 | 17% |
| Professional fees | 1,687 | 1,567 | 8% | 1,010 | 67% | 5,882 | 5,194 | 13% |
| FDIC assessment | 1,115 | 1,135 | -2% | 939 | 19% | 4,353 | 3,309 | 32% |
| Merger and integration expenses | 32 | 66 | -52% | 2,540 | -99% | 322 | 5,161 | -94% |
| Credit related expenses | 2,997 | 3,531 | -15% | 2,331 | 29% | 10,966 | 8,895 | 23% |
| Other | 3,081 | 3,396 | -9% | 3,825 | -19% | 13,636 | 14,986 | -9% |
| Total noninterest expense | 39,010 | 39,420 | -1% | 38,164 | 2% | 152,444 | 141,614 | 8% |
| Income before income taxes | 36,914 | 35,600 | 4% | 29,118 | 27% | 146,522 | 134,154 | 9% |
| Income tax provision | 14,227 | 14,180 | 0% | 11,047 | 29% | 57,907 | 52,399 | 11% |
| Net income | $ 22,687 | $ 21,420 | 6% | $ 18,071 | 26% | $ 88,615 | $ 81,755 | 8% |
| | | | | | | | | |
| Earnings Per Common Share: | | | | | | | | |
| Basic | $ 0.29 | $ 0.27 | | $ 0.23 | | $ 1.11 | $ 1.03 | |
| Diluted | $ 0.29 | $ 0.27 | | $ 0.23 | | $ 1.11 | $ 1.03 | |
| | | | | | | | | |
| Average Shares Outstanding: | | | | | | | | |
| Basic | 79,500,638 | 79,493,917 | | 79,350,797 | | 79,493,742 | 79,036,729 | |
| Diluted | 79,596,391 | 79,601,075 | | 79,520,193 | | 79,611,037 | 79,260,703 | |
| | | | | | | | | |
| | | | | | | | | |
| | Three Months Ended | Twelve Months Ended | |
| | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | 12/31/2014 | 12/31/2013 | |
| | | | | | | | | |
| Net Income | $ 22,687 | $ 21,420 | $ 22,312 | $ 22,196 | $ 18,071 | $ 88,615 | $ 81,755 | |
| Add back: Income tax | 14,227 | 14,180 | 14,935 | 14,564 | 11,047 | 57,907 | 52,399 | |
| Add back: Provision for loan losses | 2,360 | 4,256 | 2,996 | 3,026 | 10,950 | 12,638 | 20,000 | |
| Pre-tax, pre-provision income (PTPP) 1 | $ 39,274 | $ 39,856 | $ 40,243 | $ 39,786 | $ 40,068 | $ 159,160 | $ 154,154 | |
| PTPP to average assets (annualized) | 2.21% | 2.32% | 2.36% | 2.44% | 2.51% | 2.33% | 2.55% | |
| | | | | | | | | |
| 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 Twelve Months Ended
(Annualized) | |
| Profitability measures: | 12/31/2014 | 9/30/2014 | 12/31/2013 | | | 12/31/2014 | 12/31/2013 | |
| ROA | 1.28% | 1.25% | 1.13% | | | 1.30% | 1.35% | |
| ROE | 10.42% | 9.97% | 8.92% | | | 10.44% | 10.37% | |
| Return on average tangible equity 2 | 11.91% | 11.43% | 10.51% | | | 12.00% | 12.01% | |
| Net interest margin | 3.90% | 4.15% | 4.45% | | | 4.13% | 4.46% | |
| Efficiency ratio | 49.83% | 49.73% | 48.78% | | | 48.92% | 47.88% | |
| | | | | | | | | |
| 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 |
| | 12/31/2014 | 9/30/2014 | 12/31/2013 |
| | | | | | | | | | |
| | | 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 | $ 5,508,850 | $ 70,999 | 5.11% | $ 5,434,815 | $ 72,437 | 5.29% | $ 4,999,586 | $ 70,435 | 5.59% |
| Securities available for sale | 716,245 | 3,973 | 2.22% | 734,282 | 3,999 | 2.18% | 702,886 | 3,971 | 2.26% |
| FRB and FHLB stock and other investments | 520,225 | 795 | 0.60% | 332,643 | 648 | 0.76% | 258,270 | 510 | 0.77% |
| Total interest earning assets | $ 6,745,320 | $ 75,767 | 4.46% | $ 6,501,740 | $ 77,084 | 4.71% | $ 5,960,742 | $ 74,916 | 4.99% |
| | | | | | | | | | |
| INTEREST BEARING LIABILITIES: | | | | | | | | | |
| Deposits: | | | | | | | | | |
| Demand, interest-bearing | $ 1,686,608 | $ 2,936 | 0.69% | $ 1,492,175 | $ 2,558 | 0.68% | $ 1,327,322 | $ 2,082 | 0.62% |
| Savings | 199,387 | 459 | 0.91% | 202,785 | 496 | 0.97% | 226,638 | 657 | 1.15% |
| Time deposits: | | | | | | | | | |
| $100,000 or more | 1,606,508 | 3,185 | 0.79% | 1,601,436 | 3,094 | 0.77% | 1,468,459 | 2,413 | 0.65% |
| Other | 649,961 | 1,217 | 0.74% | 677,474 | 1,270 | 0.74% | 662,029 | 1,155 | 0.69% |
| Total time deposits | 2,256,469 | 4,402 | 0.77% | 2,278,910 | 4,365 | 0.76% | 2,130,488 | 3,568 | 0.66% |
| Total interest bearing deposits | 4,142,464 | 7,797 | 0.75% | 3,973,870 | 7,419 | 0.74% | 3,684,448 | 6,307 | 0.68% |
| FHLB advances | 481,340 | 1,351 | 1.11% | 462,434 | 1,373 | 1.18% | 420,319 | 1,204 | 1.14% |
| Other borrowings | 40,578 | 385 | 3.72% | 40,533 | 385 | 3.72% | 56,453 | 529 | 3.67% |
| Total interest bearing liabilities | 4,664,382 | $ 9,533 | 0.81% | 4,476,837 | $ 9,177 | 0.81% | 4,161,220 | $ 8,040 | 0.77% |
| Noninterest bearing demand deposits | 1,514,678 | | | 1,483,966 | | | 1,379,230 | | |
| Total funding liabilities/cost of funds | $ 6,179,060 | | 0.61% | $ 5,960,803 | | 0.61% | $ 5,540,450 | | 0.58% |
| Net interest income/net interest spread | | $ 66,234 | 3.65% | | $ 67,907 | 3.89% | | $ 66,876 | 4.22% |
| Net interest margin | | | 3.90% | | | 4.15% | | | 4.45% |
| Net interest margin, excluding effect of nonaccrual loan income (expense) | 3.91% | | | 4.14% | | | 4.47% |
| Net interest margin, excluding effect of nonaccrual loan income (expense) and prepayment fee income | 3.89% | | | 4.10% | | | 4.44% |
| | | | | | | | | | |
| Nonaccrual loan income (reversed) recognized | $ (164) | | | $ 63 | | | $ (280) | |
| Prepayment fee income received | | 206 | | | 608 | | | 537 | |
| Net | | $ 42 | | | $ 671 | | | $ 257 | |
| | | | | | | | | | |
| Cost of deposits: | | | | | | | | | |
| Noninterest bearing demand deposits | $ 1,514,678 | $ -- | | $ 1,437,860 | $ -- | | $ 1,379,230 | $ -- | |
| Interest bearing deposits | 4,142,464 | 7,797 | 0.75% | 4,012,725 | 7,272 | 0.73% | 3,684,448 | 6,307 | 0.68% |
| Total deposits | $ 5,657,142 | $ 7,797 | 0.55% | $ 5,450,585 | $ 7,272 | 0.54% | $ 5,063,678 | $ 6,307 | 0.50% |
| | | | | | | | | |
| | | | | | | | | |
| | Twelve Months Ended | Twelve Months Ended | | |
| | 12/31/2014 | 12/31/2013 | | |
| | | | | | | | | |
| | | 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 | $ 5,355,243 | $ 283,817 | 5.30% | $ 4,692,089 | $ 266,684 | 5.68% | | |
| Securities available for sale | 717,775 | 16,144 | 2.25% | 703,812 | 14,726 | 2.09% | | |
| FRB and FHLB stock and other investments | 385,298 | 2,676 | 0.68% | 276,109 | 1,663 | 0.59% | | |
| Federal funds sold | 3,342 | 20 | 0.60% | -- | -- | NA | | |
| Total interest earning assets | $ 6,461,657 | $ 302,657 | 4.68% | $ 5,672,010 | $ 283,073 | 4.99% | | |
| | | | | | | | | |
| INTEREST BEARING LIABILITIES: | | | | | | | | |
| Deposits: | | | | | | | | |
| Demand, interest-bearing | $ 1,514,386 | $ 10,270 | 0.68% | $ 1,289,082 | $ 7,818 | 0.61% | | |
| Savings | 206,667 | 2,094 | 1.01% | 200,735 | 2,800 | 1.39% | | |
| Time deposits: | | | | | | | | |
| $100,000 or more | 1,598,960 | 11,942 | 0.75% | 1,317,178 | 8,254 | 0.63% | | |
| Other | 671,766 | 4,871 | 0.73% | 671,670 | 4,449 | 0.66% | | |
| Total time deposits | 2,270,726 | 16,813 | 0.74% | 1,988,848 | 12,703 | 0.64% | | |
| Total interest bearing deposits | 3,991,779 | 29,178 | 0.73% | 3,478,665 | 23,321 | 0.67% | | |
| FHLB advances | 452,923 | 5,245 | 1.16% | 421,729 | 4,899 | 1.16% | | |
| Other borrowings | 43,459 | 1,637 | 3.72% | 47,678 | 1,798 | 3.72% | | |
| Total interest bearing liabilities | 4,488,162 | $ 36,060 | 0.80% | 3,948,072 | $ 30,018 | 0.76% | | |
| Non-interest bearing demand deposits | 1,448,141 | | | 1,260,596 | | | | |
| Total funding liabilities / cost of funds | $ 5,936,303 | | 0.61% | $ 5,208,668 | | 0.58% | | |
| Net interest income / net interest spread | | $ 266,597 | 3.88% | | $ 253,055 | 4.23% | | |
| Net interest margin | | | 4.13% | | | 4.46% | | |
| Net interest margin, excluding effect of nonaccrual loan income (expense) | | 4.13% | | | 4.47% | | |
| Net interest margin, excluding effect of nonaccrual loan income (expense) and prepayment fee income | 4.10% | | | 4.44% | | |
| | | | | | | | | |
| Nonaccrual loan income (reversed) recognized | | $ (26) | | | $ (274) | | | |
| Prepayment fee income received | | 1,729 | | | 1,485 | | | |
| Net | | $ 1,703 | | | $ 1,211 | | | |
| | | | | | | | | |
| Cost of deposits: | | | | | | | | |
| Non-interest bearing demand deposits | $ 1,448,141 | $ -- | | $ 1,260,596 | $ -- | | | |
| Interest bearing deposits | 3,991,779 | 29,178 | 0.73% | 3,478,665 | 23,321 | 0.67% | | |
| Total deposits | $ 5,439,920 | $ 29,178 | 0.54% | $ 4,739,261 | $ 23,321 | 0.49% | | |
| | | | | | | | | |
| | | | | | | | | |
| | Three Months Ended | Twelve Months Ended |
| | 12/31/2014 | 9/30/2014 | % change | 12/31/2013 | % change | 12/31/2014 | 12/31/2013 | % change |
| AVERAGE BALANCES | | | | | | | | |
| Loans receivable, including loans held for sale | $ 5,508,850 | $ 5,434,815 | 1% | $ 4,999,586 | 10% | $ 5,355,243 | $ 4,692,089 | 14% |
| Investments | 1,236,470 | 1,066,925 | 16% | 961,156 | 29% | 1,106,415 | 979,921 | 13% |
| Interest earning assets | 6,745,320 | 6,501,740 | 4% | 5,960,742 | 13% | 6,461,657 | 5,672,010 | 14% |
| Total assets | 7,099,418 | 6,867,468 | 3% | 6,393,648 | 11% | 6,830,244 | 6,042,674 | 13% |
| | | | | | | | | |
| Interest bearing deposits | 4,142,464 | 3,973,870 | 4% | 3,684,448 | 12% | 3,991,779 | 3,478,665 | 15% |
| Interest bearing liabilities | 4,664,382 | 4,476,837 | 4% | 4,161,220 | 12% | 4,488,162 | 3,948,072 | 14% |
| Noninterest bearing demand deposits | 1,514,678 | 1,483,966 | 2% | 1,379,230 | 10% | 1,448,141 | 1,260,596 | 15% |
| Stockholders' equity | 871,291 | 859,606 | 1% | 810,563 | 7% | 848,443 | 788,570 | 8% |
| Net interest earning assets | 2,080,938 | 2,024,903 | 3% | 1,799,522 | 16% | 1,973,495 | 1,723,938 | 14% |
| | | | | | | | | |
| | 12/31/2014 | 9/30/2014 | % change | 12/31/2013 | % change | | | |
| LOAN PORTFOLIO COMPOSITION: | | | | | | | | |
| Commercial loans | $ 1,038,383 | $ 1,023,924 | 1% | $ 1,073,778 | -3% | | | |
| Real estate loans | 4,441,864 | 4,317,960 | 3% | 3,904,059 | 14% | | | |
| Consumer and other loans | 89,850 | 92,362 | -3% | 98,507 | -9% | | | |
| Loans outstanding | 5,570,097 | 5,434,246 | 2% | 5,076,344 | 10% | | | |
| Unamortized deferred loan fees - net of costs | (2,890) | (1,402) | -106% | (2,168) | -33% | | | |
| Loans, net of deferred loan fees and costs | 5,567,207 | 5,432,844 | 2% | 5,074,176 | 10% | | | |
| Allowance for loan losses | (67,758) | (68,232) | 1% | (67,320) | -1% | | | |
| Loan receivable, net | $ 5,499,449 | $ 5,364,612 | 3% | $ 5,006,856 | 10% | | | |
| | | | | | | | | |
| REAL ESTATE LOANS BY PROPERTY TYPE: | 12/31/2014 | 9/30/2014 | % change | 12/31/2013 | % change | | | |
| Retail buildings | $ 1,244,133 | $ 1,233,161 | 1% | $ 1,140,103 | 9% | | | |
| Hotels/motels | 889,411 | 846,921 | 5% | 720,175 | 23% | | | |
| Gas stations/car washes | 603,961 | 582,725 | 4% | 522,198 | 16% | | | |
| Mixed-use facilities | 334,068 | 353,395 | -5% | 312,156 | 7% | | | |
| Warehouses | 450,356 | 443,418 | 2% | 383,979 | 17% | | | |
| Multifamily | 205,280 | 197,902 | 4% | 181,503 | 13% | | | |
| Other | 714,655 | 660,438 | 8% | 643,945 | 11% | | | |
| Total | $ 4,441,864 | $ 4,317,960 | 3% | $ 3,904,059 | 14% | | | |
| | | | | | | | | |
| DEPOSIT COMPOSITION | 12/31/2014 | 9/30/2014 | % change | 12/31/2013 | % change | | | |
| Noninterest bearing demand deposits | $ 1,543,018 | $ 1,503,275 | 3% | $ 1,399,454 | 10% | | | |
| Money market and other | 1,663,855 | 1,537,467 | 8% | 1,376,068 | 21% | | | |
| Saving deposits | 198,205 | 199,953 | -1% | 222,446 | -11% | | | |
| Time deposits of $100,000 or more | 1,667,367 | 1,595,213 | 5% | 1,499,248 | 11% | | | |
| Other time deposits | 621,007 | 673,846 | -8% | 650,841 | -5% | | | |
| Total deposit balances | $ 5,693,452 | $ 5,509,754 | 3% | $ 5,148,057 | 11% | | | |
| | | | | | | | | |
| DEPOSIT COMPOSITION (%) | 12/31/2014 | 9/30/2014 | 12/31/2013 | | | | | |
| Noninterest bearing demand deposits | 27.1% | 27.3% | 27.2% | | | | | |
| Money market and other | 29.2% | 27.9% | 26.7% | | | | | |
| Saving deposits | 3.5% | 3.6% | 4.3% | | | | | |
| Time deposits of $100,000 or more | 29.3% | 29.0% | 29.1% | | | | | |
| Other time deposits | 10.9% | 12.2% | 12.7% | | | | | |
| Total deposit balances | 100.0% | 100.0% | 100.0% | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| CAPITAL RATIOS | 12/31/2014 | 9/30/2014 | 12/31/2013 | | | | | |
| Total stockholders' equity | $ 882,773 | $ 864,648 | $ 809,374 | | | | | |
| Tier 1 risk-based capital ratio | 13.64% | 13.72% | 13.66% | | | | | |
| Total risk-based capital ratio | 14.80% | 14.93% | 14.90% | | | | | |
| Tier 1 leverage ratio | 11.62% | 11.80% | 11.97% | | | | | |
| Total risk weighted assets | $ 5,957,617 | $ 5,807,854 | 5,498,694 | | | | | |
| Book value per common share | $ 11.10 | $ 10.87 | $ 10.18 | | | | | |
| Tangible common equity to tangible assets3 | 11.00% | 11.07% | 10.97% | | | | | |
| Tangible common equity per share3 | $ 9.72 | $ 9.49 | $ 8.79 | | | | | |
| | | | | | | | | |
| 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. |
| | | | | | | | |
| Reonciliation of GAAP financial measures to non-GAAP financial measures: | | | | |
| | | | | | | | |
| | 12/31/2014 | 9/30/2014 | 12/31/2013 | | | | |
| Total stockholders' equity | $ 882,773 | $ 864,648 | $ 809,374 | | | | |
| Less: Common stock warrant | (378) | (378) | (378) | | | | |
| Goodwill and core deposit intangible assets, net | (109,288) | (109,612) | (110,585) | | | | |
| Tangible common equity | $ 773,107 | $ 754,658 | $ 698,411 | | | | |
| | | | | | | | |
| Total assets | $ 7,140,330 | $ 6,927,806 | $ 6,475,199 | | | | |
| Less: Goodwill and core deposit intangible assets, net | (109,288) | (109,612) | (110,585) | | | | |
| Tangible assets | $ 7,031,042 | $ 6,818,194 | $ 6,364,614 | | | | |
| | | | | | | | |
| Common shares outstanding | 79,503,552 | 79,497,331 | 79,441,525 | | | | |
| | | | | | | | |
| Tangible common equity to tangible assets | 11.00% | 11.07% | 10.97% | | | | |
| Tangible common equity per share | $ 9.72 | $ 9.49 | $ 8.79 | | | | |
| | | | | | | | |
| | | | | | | | |
| | Three Months Ended | Twelve Months Ended |
| ALLOWANCE FOR LOAN LOSSES: | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | 12/31/2014 | 12/31/2013 |
| Balance at beginning of period | $ 68,232 | $ 66,870 | $ 65,699 | $ 67,320 | $ 65,715 | $ 67,320 | $ 66,941 |
| Provision for loan losses | 2,360 | 4,256 | 2,996 | 3,026 | 10,950 | 12,638 | 20,000 |
| Recoveries | 3,225 | 772 | 946 | 616 | 605 | 5,559 | 2,448 |
| Charge offs | (6,059) | (3,666) | (2,771) | (5,263) | (9,950) | (17,759) | (22,069) |
| Balance at end of period | $ 67,758 | $ 68,232 | $ 66,870 | $ 65,699 | $ 67,320 | $ 67,758 | $ 67,320 |
| Net charge offs/average gross loans (annualized) | 0.21% | 0.21% | 0.14% | 0.36% | 0.75% | 0.23% | 0.42% |
| | | | | | | | |
| | Three Months Ended | Twelve Months Ended |
| NET CHARGED OFF LOANS BY TYPE | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | 12/31/2014 | 12/31/2013 |
| | | | | | | | |
| Real estate loans | $ (265) | $ 1,100 | $ 765 | $ 154 | $ 288 | $ 1,754 | $ 8,175 |
| Commercial loans | 3,104 | 1,803 | 1,255 | 4,414 | 9,139 | $ 10,576 | 11,092 |
| Consumer loans | (5) | (9) | (195) | 79 | (82) | $ (130) | (146) |
| Charge offs excluding Acquired Credit Impaired Loans | 2,834 | 2,894 | 1,825 | 4,647 | 9,345 | 12,200 | 19,121 |
| Charge offs on Acquired Credit Impaired Loans | -- | -- | -- | -- | -- | -- | 500 |
| Total net charge offs | $ 2,834 | $ 2,894 | $ 1,825 | $ 4,647 | $ 9,345 | $ 12,200 | $ 19,621 |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| NONPERFORMING ASSETS | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | | |
| Delinquent loans on nonaccrual status4 | $ 46,352 | $ 39,564 | $ 42,651 | $ 47,314 | $ 39,154 | | |
| Delinquent loans 90 days or more on accrual status5 | 361 | -- | -- | -- | 5 | | |
| Accruing restructured loans | 57,128 | 56,061 | 43,906 | 37,527 | 33,903 | | |
| Total nonperforming loans | 103,841 | 95,625 | 86,557 | 84,841 | 73,062 | | |
| Other real estate owned | 21,938 | 23,162 | 20,610 | 20,001 | 24,288 | | |
| Total nonperforming assets | $ 125,779 | $ 118,787 | $ 107,167 | $ 104,842 | $ 97,350 | | |
| Nonperforming assets/total assets | 1.76% | 1.71% | 1.56% | 1.57% | 1.50% | | |
| Nonperforming assets/loans receivable & OREO | 2.25% | 2.18% | 2.00% | 2.01% | 1.91% | | |
| Nonperforming assets/total capital | 14.25% | 13.74% | 12.57% | 12.60% | 12.03% | | |
| Nonperforming loans/loans receivable | 1.87% | 1.76% | 1.62% | 1.63% | 1.44% | | |
| Nonaccrual loans/loans receivable | 0.83% | 0.73% | 0.80% | 0.91% | 0.77% | | |
| Allowance for loan losses/loans receivable | 1.22% | 1.26% | 1.25% | 1.27% | 1.33% | | |
| Allowance for loan losses/nonaccrual loans | 146.18% | 172.46% | 156.78% | 138.86% | 171.94% | | |
| Allowance for loan losses/nonperforming loans | 65.25% | 71.35% | 77.26% | 77.44% | 92.14% | | |
| Allowance for loan losses/nonperforming assets | 53.87% | 57.44% | 62.40% | 62.66% | 69.15% | | |
| | | | | | | | |
| 4 Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $28.9 million, $28.1 million, $30.0 million, $31.2 million and $27.5 million at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively. |
| 5 Excludes Acquired Credit Impaired Loans totaling $30.4 million, $32.7 million, $43.7 million, $46.0 million and $43.8 million at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively. |
| | | | | | |
| BREAKDOWN OF ACCRUING RESTRUCTURED LOANS BY TYPE: | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 |
| Retail buildings | $ 6,050 | $ 5,979 | $ 6,021 | $ 5,542 | $ 5,576 |
| Hotels/motels | 8,172 | 8,246 | 8,323 | 8,401 | 8,477 |
| Gas stations/car washes | -- | -- | -- | -- | -- |
| Mixed-use facilities | 789 | 792 | 797 | 796 | 802 |
| Warehouses | 5,880 | 5,939 | 5,922 | 812 | 482 |
| Multifamily | -- | -- | -- | -- | -- |
| Other6 | 36,237 | 35,105 | 22,843 | 21,976 | 18,566 |
| Total | $ 57,128 | $ 56,061 | $ 43,906 | $ 37,527 | $ 33,903 |
| 6 Includes commercial business and other loans | | | | | |
| | | | | | |
| | | | | | |
| DELINQUENT LOANS LESS THAN 90 DAYS PAST DUE | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 |
| | | | | | |
| Legacy | | | | | |
| 30 - 59 days | $ 2,084 | $ 3,936 | $ 3,170 | $ 1,700 | $ 2,209 |
| 60 - 89 days | 1,812 | 1,284 | 210 | 445 | 266 |
| Total delinquent loans less than 90 days past due - legacy | $ 3,896 | $ 5,220 | $ 3,380 | $ 2,145 | $ 2,475 |
| | | | | | |
| Acquired | | | | | |
| 30 - 59 days | $ 1,806 | $ 6,911 | $ 6,403 | $ 4,916 | $ 5,113 |
| 60 - 89 days | 436 | 283 | 640 | 3 | 2,506 |
| Total delinquent loans less than 90 days past due - acquired | $ 2,242 | $ 7,194 | $ 7,043 | $ 4,919 | $ 7,619 |
| | | | | | |
| Total delinquent loans less than 90 days past due | $ 6,138 | $ 12,414 | $ 10,423 | $ 7,064 | $ 10,094 |
| | | | | | |
| DELINQUENT LOANS LESS THAN 90 DAYS PAST DUE BY TYPE | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 |
| | | | | | |
| Legacy | | | | | |
| Real estate loans | $ 2,475 | $ 2,768 | $ 1,675 | $ 760 | $ 1,375 |
| Commercial loans | 1,385 | 2,221 | 1,640 | 1,338 | 1,024 |
| Consumer loans | 36 | 231 | 65 | 47 | 76 |
| Total delinquent loans less than 90 days past due - legacy | $ 3,896 | $ 5,220 | $ 3,380 | $ 2,145 | $ 2,475 |
| | | | | | |
| Acquired | | | | | |
| Real estate loans | $ 1,747 | $ 6,297 | $ 6,051 | $ 4,036 | $ 6,034 |
| Commercial loans | 382 | 884 | 860 | 598 | 1,228 |
| Consumer loans | 113 | 13 | 132 | 285 | 357 |
| Total delinquent loans less than 90 days past due - acquired | $ 2,242 | $ 7,194 | $ 7,043 | $ 4,919 | $ 7,619 |
| | | | | | |
| Total delinquent loans less than 90 days past due | $ 6,138 | $ 12,414 | $ 10,423 | $ 7,064 | $ 10,094 |
| | | | | | |
| | | | | | |
| NONACCRUAL LOANS BY TYPE | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 |
| | | | | | |
| Real estate loans | $ 30,988 | $ 29,001 | $ 27,815 | $ 34,070 | $ 28,083 |
| Commercial loans | 14,302 | 9,486 | 13,553 | 12,216 | 10,141 |
| Consumer loans | 1,062 | 1,077 | 1,283 | 1,028 | 930 |
| Total non-accrual loans | $ 46,352 | $ 39,564 | $ 42,651 | $ 47,314 | $ 39,154 |
| | | | | | |
| CRITICIZED LOANS | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 |
| Legacy | | | | | |
| Special mention | $ 96,092 | $ 88,314 | $ 55,659 | $ 52,159 | $ 46,480 |
| Substandard | 114,369 | 113,865 | 112,357 | 111,529 | 120,163 |
| Doubtful | 39 | 470 | 1,227 | 3,332 | 359 |
| Loss | -- | -- | -- | -- | -- |
| Total criticized loans - legacy | $ 210,500 | $ 202,649 | $ 169,243 | $ 167,020 | $ 167,002 |
| | | | | | |
| Acquired | | | | | |
| Special mention | $ 26,243 | $ 25,081 | $ 36,811 | $ 41,395 | $ 43,009 |
| Substandard | 107,506 | 114,347 | 124,618 | 134,660 | 138,337 |
| Doubtful | 2,148 | 3,086 | 3,980 | 2,376 | 6,100 |
| Loss | -- | -- | 76 | 1,445 | 1,402 |
| Total criticized loans - acquired | $ 135,897 | $ 142,514 | $ 165,485 | $ 179,876 | $ 188,848 |
| | | | | | |
| Total criticized loans | $ 346,397 | $ 345,163 | $ 334,728 | $ 346,896 | $ 355,850 |
CONTACT: Angie Yang
SVP, Investor Relations
213-251-2219
angie.yang@BBCNbank.com