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BBCN Bancorp Reports 2013 Second Quarter Financial Results



BBCN Bancorp Reports 2013 Second Quarter Financial Results

Acquisition of Chicago-Based Foster Bankshares On Track to Complete Early
August 2013

Q2 2013 Summary:

  * Net income of $22.7 million, or $0.29 per diluted common share
  * Total assets increased to $5.86 billion
  * Gross loans total $4.52 billion, reflecting a 5% increase year-to-date
  * New loan originations of $208 million largely offset by aggregate pay-offs
    and pay-downs of $190 million
  * Total deposits increased to $4.58 billion, including a 2% increase in
    non-interest bearing demand deposits
  * Net interest margin steady with preceding first quarter at 4.49%

LOS ANGELES, July 22, 2013 (GLOBE NEWSWIRE) -- BBCN Bancorp, Inc. (the
"Company") (Nasdaq:BBCN), the holding company of BBCN Bank (the "Bank"), today
reported net income available to common stockholders of $22.7 million, or
$0.29 per diluted common share, for the second quarter of 2013. This reflects
increases of 30% and 45%, respectively, over the net income available to
common stockholders for the preceding 2013 first quarter and 2012 second
quarter.

The Company also announced the receipt of all regulatory approvals for the
previously announced acquisition of Chicago-based Foster Bankshares, Inc. BBCN
anticipates completing the transaction in early August 2013, subject to the
satisfaction of other customary closing conditions. Foster Bank, a wholly
owned subsidiary of Foster Bankshares, is a state-chartered bank, operating
eight branches in the Chicago metropolitan area and one branch in Annandale,
Virginia.

"BBCN's 2013 second quarter financial results demonstrate the stability of our
organization's operational performance and core earnings power," said Kevin S.
Kim, Chairman and Chief Executive Officer of BBCN Bancorp, Inc. "Pre-tax
pre-provision earnings to average assets improved sequentially to 2.60% on an
annualized basis, and our net interest margin held steady at 4.49%.

"Quality loan growth remains challenging, given the high demand for fixed-rate
commercial real estate loans at extremely competitive rates. We believe it is
prudent to remain selective on fixed-rate loan growth in the current
environment. Together with a couple of larger loans that funded after the
close of the quarter, new loan originations came in lower than originally
budgeted. This, however, gives us a solid start on loan growth for the third
quarter. We look forward to completing the Foster transaction early next
month, which will make BBCN the only Korean-American bank in the Midwest and
significantly strengthen our national platform. The steady progress we
continue to make gives us greater confidence in our ability to further enhance
the value proposition for our customers, employees and shareholders," said
Kim.

Financial Highlights

(Dollars in thousands, except  Three Months Ended
per share data)
                               6/30/2013       3/31/2013       6/30/2012
Net income                     $22,671         $17,461         $19,364
Net income available to common $22,671         $17,461         $15,593
stockholders
Diluted earnings per share     $0.29           $0.22           $0.20
Net interest income            $62,103         $59,716         $59,502
Net interest margin            4.49%           4.49%           5.02%
Non-interest income            $10,618         $9,940          $10,222
Non-interest expense           $34,429         $33,275         $31,077
Net loans receivable           $4,446,447      $4,426,778      $3,809,033
Deposits                       $4,576,799      $4,555,674      $3,882,680
Non-accrual loans ^(1)         $44,987         $42,269         $39,567
ALLL to gross loans            1.59%           1.63%           1.69%
ALLL to non-accrual loans ^(1) 159.32%         173.34%         165.55%
ALLL to nonperforming assets   65.40%          70.07%          72.80%
^(1)
Provision for loan losses      $800            $7,506          $7,182
Net charge-offs                $2,393          $1,179          $3,986
ROA ^(2)                       1.54%           1.22%           1.52%
ROE ^(2)                       11.58%          9.13%           9.40%
Efficiency ratio               47.34%          47.77%          44.57%
 
^(1) Excludes delinquent SBA loans that are guaranteed and currently in
liquidation totaling $21.0 million, $18.6 million and $16.1 million at the
close of the 2013 second quarter, 2013 first quarter and 2012 second quarter,
respectively.
^(2) Based on net income before effects of dividends and discount accretion on
preferred stock.
 

Operating Results for the Second Quarter of 2013

The comparability of BBCN's operating results with past performance is
impacted by acquisition accounting adjustments related to the acquisitions of
Center Financial Corporation effected November 30, 2011 and Pacific
International Bancorp completed February 15, 2013. The Company believes the
following supplemental information will be helpful in understanding past
financial performance. Operating results for the three months ended June 30,
2013, March 31, 2013 and June 30, 2012 include the following pre-tax
acquisition accounting adjustments related to mergers. 

The increase (decrease) of major adjustments to pre-tax income is summarized
below. The impact which these adjustments have to certain yields and costs are
described in subsequent sections of this release. 

                                                   Three Months Ended
                                                   June 30, March 31, June 30,
                                                   2013     2013      2012
Accretion of discount on acquired performing loans 6,637    $4,076    $6,010
Accretion of discount on acquired credit impaired  1,032    1,522     1,686
loans
Amortization of premium on acquired FHLB           92       91        904
borrowings
Accretion of discount on acquired subordinated     (48)     (43)      (36)
debt
Amortization of premium on acquired time deposits  247      438       787
Increase to pre-tax income                         $7,960   $6,084    $9,351

In addition to the items listed above, acquisition accounting adjustments had
the effect of reducing the yield on acquired securities portfolios. 

Net Interest Income and Net Interest Margin. The following table summarizes
the reported net interest income before provision for loan losses. 

                                   Three Months Ended
                                   6/30/2013 3/31/2013 %      6/30/2012 %
                                                       change           change
Net interest income before         $62,103   $59,716   4%     $59,502   4%
provision for loan losses

Second quarter 2013 net interest income before provision for loan losses
increased 4% over the preceding first quarter and the prior-year second
quarter, and is largely attributed to higher levels of interest income on
loans as a result of positive loan growth. 

The net interest margin (net interest income divided by average
interest-earning assets) and the impact of acquisition accounting adjustments
are summarized in the following table: 

                                 Three Months Ended
                                 6/30/2013 3/31/2013 change  6/30/2012 change
Net interest margin, excluding
the effect of acquisition        3.86%     3.97%     (0.11)% 4.15%     (0.29)%
accounting adjustments
Acquisition accounting           0.63      0.52      0.11    0.87      (0.24)
adjustments
Reported net interest margin     4.49%     4.49%     —%      5.02%     (0.53)%

The net interest margin for the 2013 second quarter equaled 4.49%, the same as
for the preceding first quarter. On a core basis, excluding the effect of
acquisition accounting adjustments, the net interest margin for the second
quarter of 2013 decreased by 11 basis points from the preceding first quarter
to 3.86%. The decline reflects a modest decline in the core weighted average
yield on loans. 

Compared with the prior-year period, net interest margin for the 2013 second
quarter declined 53 basis points. Excluding the effect of acquisition
accounting adjustments, the core net interest margin for the second quarter of
2013 declined 29 basis points from the 2012 second quarter, largely due to
decreases in the weighted average yields on loans and investment securities.

The weighted average yield on loans and the impact of acquisition accounting
adjustments are summarized in the following table:

                                 Three Months Ended
                                 6/30/2013 3/31/2013 change  6/30/2012 change
The weighted average yield on
loans, excluding the effect of   5.02%     5.15%     (0.13)% 5.59%     (0.57)%
acquisition accounting
adjustments
Acquisition accounting           0.76      0.60      0.16    0.94      (0.18)
adjustments
Reported weighted average yield  5.78%     5.75%     0.03%   6.53%     (0.75)%
on loans

The weighted average yield on loans for the 2013 second quarter increased 3
basis points from the preceding first quarter, but decreased 13 basis points
on a core basis, excluding acquisition accounting adjustments. The weighted
average yield on new loans originated during the 2013 second quarter was
4.71%, compared with 4.52% for the preceding first quarter.

Compared with the prior-year period, the weighted average yield on loans for
the 2013 second quarter decreased 75 basis points and 57 basis points on a
core basis, excluding acquisition accounting adjustments. The reductions
reflect the year-over-year decline in the market rates.

The composition of fixed and variable rate loans and the associated weighted
average contractual rate, excluding the effect of loan discount accretion, is
summarized in the following table: 

                                 6/30/2013 3/31/2013 change  6/30/2012 change
Fixed rate loans                                                        
As a percentage of total loans   40%       40%       —%      38%       2.00%
Weighted average contractual     5.31%     5.47%     (0.16)% 6.25%     (0.94)%
rate
Variable rate loans                                                     
As a percentage of total loans   60%       60%       —%      62%       (2.00)%
Weighted average contractual     4.50%     4.49%     0.01%   4.60%     (0.10)%
rate

The sequential decrease in the weighted average contractual rate for fixed
rate loans for the 2013 second quarter reflects the highly competitive rate
environment for fixed rate commercial real estate loans in the current
interest rate environment. 

The weighted average yield on securities available for sale is summarized in
the following table: 

                                  Three Months Ended
                                  6/30/2013 3/31/2013 change 6/30/2012 change
Weighted average yield on         2.00%     1.98%     0.02%  2.45%     (0.45)%
securities available for sale

The weighted average yield on securities available for sale for the 2013
second quarter increased 2 basis points from the preceding first quarter, but
declined 45 basis points from the year-ago second quarter. 

The weighted average duration and average life of the securities
available-for-sale are summarized in the following table: 

                                   Three Months Ended
                                   6/30/2013 3/31/2013 %      6/30/2012 %
                                                       change           change
Weighted average duration of
securities available for sale in   4.54      3.93      15.52% 3.38      34.32%
years
Weighted average life of
securities available for sale in   5.11      4.27      19.67% 3.70      38.11%
years

The weighted average cost of deposits and the impact of acquisition accounting
adjustments are summarized in the following table: 

                                 Three Months Ended
                                 6/30/2013 3/31/2013 change  6/30/2012 change
The weighted average cost of
deposits, excluding the effect   0.51%     0.53%     (0.02)% 0.63%     (0.12)%
of acquisition accounting
adjustments
Acquisition accounting           (0.02)    (0.04)    0.02    (0.08)    0.06
adjustments
Reported weighted average cost   0.49%     0.49%     —%      0.55%     (0.06)%
of deposits

The weighted average cost of deposits for the 2013 second quarter was stable
with the preceding first quarter, but declined 2 basis points on a core basis,
excluding the amortization of premium on time deposits assumed in mergers.

Compared with the prior-year period, the weighted average cost of deposits for
the 2013 second quarter improved 6 basis points, and improved 12 basis points
on a core basis, excluding the effect of premium amortization on time deposits
assumed in mergers. 

The weighted average cost of FHLB advances and the impact of acquisition
accounting adjustments are summarized in the following table:

                                 Three Months Ended
                                 6/30/2013 3/31/2013 change  6/30/2012 change
The weighted average cost of
FHLB advances, excluding the     1.25%     1.27%     (0.02)% 3.08%     (1.83)%
effect of acquisition accounting
adjustments
Acquisition accounting           (0.09)    (0.10)    0.01    (1.13)    1.04
adjustments
Reported weighted average cost   1.16%     1.17%     (0.01)% 1.95%     (0.79)%
of FHLB advances

For the second quarter of 2013, the weighted average cost of FHLB advances
declined by just 1 basis point, and 2 basis points on a core basis, excluding
the effect of acquisition accounting adjustments. During the 2013 second
quarter, the Company added $50.0 million in new FHLB borrowings at a weighted
average rate of 0.71%, and the weighted average original maturity of these new
borrowings was 4.00 years. These new borrowing replaced 50.0 million of FHLB
borrowings, with a weighted average rate of 1.19%, which matured during the
second quarter 2013.

Compared with the prior-year period, the weighted average cost of FHLB
advances decreased 79 basis points, and declined 183 basis points on a core
basis, excluding the effect of acquisition accounting adjustments. The
decreases reflect the addition of $415.0 million in new FHLB borrowings at a
weighted average rate of 0.59%, which rate is substantially lower than the
weighted average rate of the remaining borrowings. The weighted average
original maturity of the new borrowings was 2.10 years. In addition, a total
of $364.0 million of FHLB borrowings, with a weighted average rate of 1.13%,
matured over the past twelve months.

Non-interest Income.  Total non-interest income for the 2013 second quarter
amounted to $10.6 million, reflecting a 7% increase over the preceding first
quarter and a 4% increase over the prior-year second quarter.  

The various non-interest income items are summarized in the following table: 

(In thousands)                     Three Months Ended
                                   6/30/2013 3/31/2013 %      6/30/2012 %
                                                       change           change
Service fees on deposit accounts   $2,922    $2,875    2%     $3,269    (11)%
Net gains on sales of SBA loans    3,295     2,694     22%    2,463     34%
Net gains on sale of other loans   19        43        (56)%  146       (87)%
Net gain on sales of securities    —         54        (100)% —         —%
available for sale
Net valuation gains on interest    —         —         —%     10        (100)%
swaps and caps
Net gains (losses) on sales of     (11)      2         (650)% (8)       38%
OREO
Other income and fees              4,393     4,272     3%     4,342     1%
Total non-interest income          $10,618   $9,940    7%     $10,222   4%

The increase in non-interest income is predominantly attributed to a higher
net gain on sale of SBA loans totaling $3.3 million for the 2013 second
quarter, when compared with the gains posted in the preceding and prior-year
quarters. Net gains on sales of SBA loans totaled $3.3 million, $2.7 million
and $2.5 million for the 2013 second quarter, 2013 first quarter and 2012
second quarter, respectively. During the 2013 second quarter, the Company sold
$33.8 million in SBA loans to the secondary market.

Non-interest Expense.  Total non-interest expense for the second quarter of
2013 amounted to $34.4 million, reflecting a 3% increase over the preceding
first quarter and a 10% increase over the prior-year second quarter. 

The various non-interest expense items are summarized in the following table: 

(In thousands)                     Three Months Ended
                                   6/30/2013 3/31/2013 %      6/30/2012 %
                                                       change           change
Salaries and employee benefits     $16,219   $16,332   (1)%   $14,658   11%
Occupancy                          4,835     4,011     21%    4,232     14%
Furniture and equipment            1,613     1,573     3%     1,468     10%
Advertising and marketing          1,190     1,273     (7)%   1,525     (22)%
Data processing and communications 1,861     1,644     13%    1,573     18%
Professional fees                  1,443     1,301     11%    1,069     35%
FDIC assessment                    858       694       24%    51        1,582%
Merger and integration expenses    385       1,305     (70)%  1,348     (71)%
Other                              6,025     5,142     17%    5,153     17%
Total non-interest expense         $34,429   $33,275   3%     $31,077   11%

Salaries and benefits expense for the 2013 second quarter declined 1% when
compared with the preceding first quarter. One-time management transition
costs incurred during the first quarter was largely offset by a full quarter's
impact in the increase in full-time equivalent employees (FTEs) as a result of
the Pacific International transaction completed on February 15, 2013. 

Compared with the prior-year second quarter, salaries and benefits expense for
the 2013 second quarter rose 11%. The number of FTEs was 749, 762, and 653 as
of June 30, 2013, March 31, 2013, and June 30, 2012, respectively. 

Operating results were impacted by merger and integration related expenses,
which totaled $385,000, $1.3 million and $1.3 million, for the 2013 second
quarter, 2013 first quarter and 2012 second quarter, respectively. Merger and
integration related expenses for the 2013 second quarter included expenses
associated with the integration of Pacific International Bancorp and the
pending acquisition of Foster Bankshares, Inc.

Income Tax Provision. The effective tax rate for the 2013 second quarter was
39.5%, compared with 39.5% for preceding first quarter and 38.5% for the 2012
second quarter. 

Balance Sheet Summary

Gross loans receivable totaled $4.52 billion at June 30, 2013, a slight
increase over $4.50 billion at March 31, 2013 and an increase of 17% over
$3.87 billion a year earlier at June 30, 2012. Total new loan originations
during the second quarter of 2013 amounted to $208.0 million, including SBA
loan originations of $42.7 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 $32.3 million for the second quarter of 2013, compared
with $31.7 million for the preceding first quarter. During the 2013 second
quarter, the Company sold $33.8 million of its SBA loans held for sale.

Aggregate loan pay-offs, pay-downs, amortization and other adjustments for the
2013 second quarter totaled $189.9 million, up considerably when compared with
$147.6 million for the preceding first quarter and $104.1 million for the
year-ago second quarter. 

Total deposits amounted to $4.58 billion at June 30, 2013, compared with $4.56
billion at March 31, 2013 and $3.88 billion a year earlier at June 30, 2012.
The increase over the preceding first quarter reflects higher balances in
non-interest bearing demand deposits and jumbo time deposits. Non-interest
bearing deposits at June 30, 2013 totaled $1.21 billion and accounted for 26%
of total deposits.  

Credit Quality

The provision for loan losses for the 2013 second quarter was $800,000,
compared with $7.5 million for the preceding first quarter and $7.2 million
for prior-year second quarter.

For a more detailed understanding of the changes in the Allowance for Loan and
Lease Losses ("ALLL"), the composition of the ALLL has been segmented for
disclosure purposes between loans accounted for under the amortized cost
method (referred to as "Legacy Loans") and loans acquired in mergers and
acquisitions (referred to as "Acquired Loans"). The Acquired Loans are further
segregated between performing and credit impaired loans. 

The composition of ALLL for the three months ended June 30, 2013, March 31,
2013 and June 30, 2012 is as follows: 

(dollars in thousands)                        6/30/2013  3/31/2013  6/30/2012
Legacy Loans ^(1)                             $61,316    $62,469    $62,397
Acquired Loans - Performing Loans ^(2)        5,825      6,265      1,194
Acquired Loans - Credit Impaired Loans ^(2)   4,534      4,534      1,914
Total ALLL                                    $71,675    $73,268    $65,505
                                                                     
Gross loans, net of deferred loan fees and    $4,518,122 $4,500,046 $3,874,538
costs
ALLL coverage ratio                           1.59%      1.63%      1.69%

^(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 their
allowance for loan losses reflect provisions for credit deterioration since
the acquisition date.

Following are the Special Mention, Classified and Total Criticized loan
balances as of June 30, 2013, March 31, 2013 and June 30, 2012:  

(dollars in thousands) 6/30/2013 3/31/2013 6/30/2012
Special Mention ^(1)   $108,788  $112,403  $109,387
Classified ^(1)        $220,677  $229,354  $204,709
Total Criticized       $329,465  $341,757  $314,096

^(1) Balances include Acquired Loans which were marked to fair value on the
date of acquisition.

Nonperforming loans (defined by the Company as loans past due 90 days or more
and on non-accrual status, acquired loans past due 90 days or more and on
accrual status, and accruing restructured loans) at June 30, 2013 totaled
$100.0 million, or 2.21% of total loans, a slight increase when compared with
$96.1 million, or 2.14% of total loans, at March 31, 2013. Nonperforming
assets at June 30, 2013 amounted to $109.6 million, or 1.87% of total assets,
compared with $104.6 million, or 1.79% of total assets, at March 31, 2013. 

Net loan charge-offs for the second quarter of 2013 totaled $2.4 million, or
0.21% of average loans on an annualized basis, compared with $1.2 million, or
0.11%, for the preceding first quarter.  

The allowance for loan losses at June 30, 2013 was $71.7 million, or 1.59% of
gross loans receivable (excluding loans held for sale), compared with $73.3
million, or 1.63%, at March 31, 2013.   The coverage ratio of the allowance
for loan losses to nonperforming loans (excluding acquired loans past due 90
days or more on accrual status) was 88.3% at June 30, 2013, compared with
98.3% at March 31, 2013.

Impaired loans (defined as loans for which it is probable that not all
principal and interest payments due will be collectible in accordance with the
contractual terms) decreased 4% to $98.2 million at June 30, 2013 from $102.0
at March 31, 2013. 

Specific reserves for impaired loans at June 30, 2013 totaled $15.1 million,
or 15.4% of the aggregate impaired loan amount, compared with $15.1 million,
or 14.8% of the aggregate impaired loan amount, at March 31, 2013. Excluding
specific reserves for impaired loans, the allowance coverage on the remaining
loan portfolio was 1.28% at June 30, 2013, compared with 1.32% at March 31,
2013.

Capital

At June 30, 2013, the Company continued to exceed all regulatory capital
requirements to be classified as a "well-capitalized" institution, as
summarized in the following table.  

                        6/30/2013 3/31/2013 6/30/2012
Leverage Ratio          12.61%    12.64%    12.97%
Tier 1 Risk-based Ratio 14.89%    14.62%    15.54%
Total Risk-based Ratio  16.14%    15.88%    16.80%

Tangible common equity per share and as a percentage of tangible assets
continued to improve over prior comparable periods, as summarized in the
following table:  

                                               6/30/2013 3/31/2013 6/30/2012
Tangible common equity per share ^(1)          $8.65     $8.57     $7.94
Tangible common equity to tangible assets ^(1) 11.88%    11.77%    12.49%

^(1)  Tangible common equity to tangible assets is a non-GAAP financial
measure that represents common equity less goodwill and net other intangible
assets divided by total assets less goodwill and net other intangible
assets. Management reviews tangible common equity to tangible assets in
evaluating the Company's capital levels and has included this ratio in
response to market participant interest in tangible common equity as a measure
of capital. The accompanying financial information includes a reconciliation
of the ratio of tangible common equity to tangible assets with stockholders'
equity and total assets.                      

Investor Conference Call 

The Company will host an investor conference call on Tuesday, July 23, 2013 at
9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results
for the second quarter of 2013. Investors and analysts may access the
conference call by dialing 800-299-9630 (domestic) or 617-786-2904
(international), passcode 57949239. 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 BBCNbank.com. 

After the live webcast, a replay will be archived in the Investor Relations
section of BBCN Bancorp's website for one year. A telephonic replay of the
call will be available at 888-286-8010 (domestic) or 617-801-6888
(international) through July 30, 2013, passcode 70185604.

About BBCN Bancorp, Inc.

BBCN Bancorp, Inc. is the holding company of BBCN Bank, the largest
Korean-American bank in the nation with $5.9 billion in assets as of June 30,
2013. Headquartered in Los Angeles and serving a diverse mix of customers
mirroring its communities, BBCN operates 45 branches in California, New York,
New Jersey, Washington and Illinois, 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 Statements of Financial Condition
Unaudited (Dollars in Thousands, Except per Share Data) 
                                                                                                               
Assets             6/30/2013    3/31/2013   % change   12/31/2012   % change  6/30/2012    % change            
                                                                                                               
Cash and due from   $ 296,330    $ 280,813  6%          $ 312,916   -5%        $ 179,621   65%                 
banks
Securities
available for       725,239      717,441    1%          704,403     3%         666,852     9%                  
sale, at fair
value
Federal Home Loan
Bank and Federal    26,261       24,308     8%          22,495      17%        24,778      6%                  
Reserve Bank stock
Loans held for
sale, at the lower  43,111       48,941     -12%        51,635      -17%       32,590      32%                 
of cost or fair
value
Loans receivable    4,518,122    4,500,046  0%          4,296,252   5%         3,874,538   17%                 
Allowance for loan  (71,675)     (73,268)   2%          (66,941)    -7%        (65,505)    9%                  
losses
Net loans           4,446,447    4,426,778  0%          4,229,311   5%         3,809,033   17%                 
receivable
Accrued interest    13,054       13,271     -2%         12,117      8%         12,062      8%                  
receivable
Premises and        23,226       22,960     1%          22,609      3%         21,805      7%                  
equipment, net
Bank owned life     44,400       44,079     1%          43,767      1%         43,119      3%                  
insurance
Goodwill            92,288       93,404     -1%         89,878      3%         89,882      3%                  
Other intangible    3,125        3,401      -8%         3,033       3%         3,636       -14%                
assets, net
Other assets        149,533      158,201    -5%         148,497     1%         166,027     -10%                
Total assets        $ 5,863,014  $          1%          $ 5,640,661 4%         $ 5,049,405 16%                 
                                5,833,597
                                                                                                               
Liabilities                                                                                                    
                                                                                                               
Deposits            $ 4,576,799  $          0%          $ 4,384,035 4%         $ 3,882,680 18%                 
                                4,555,674
Borrowings from
Federal Home Loan   421,539      421,632    0%          420,722     0%         371,143     14%                 
Bank
Subordinated        41,920       45,996     -9%         41,846      0%         41,772      0%                  
debentures
Accrued interest    4,499        4,325      4%          4,355       3%         5,924       -24%                
payable
Other liabilities   37,232       33,695     10%         38,599      -4%        32,425      15%                 
Total liabilities   5,081,989    5,061,322  0%          4,889,557   4%         4,333,944   17%                 
                                                                                                               
Stockholders'                                                                                                  
Equity
                                                                                                               
Common stock,
$0.001 par value;
authorized,
150,000,000 shares
at June 30, 2013,
December 31, 2012
and June 30, 2012;
issued and
outstanding,        79           79         0%          78          1%         78          1%                  
79,205,840,
78,812,140,
78,041,511, and
78,014,107 at June
30, 2013, March ,
31, 2013, December
31, 2012, and June
30, 2012,
respectively
Capital surplus     537,085      535,091    0%          525,354     2%         525,985     2%                  
Retained earnings   248,866      230,149    8%          216,590     15%        180,567     38%                 
Accumulated other
comprehensive       (5,005)      6,956      -172%       9,082       -155%      8,831       -157%               
income, net
 Total
stockholders'       781,025      772,275    1%          751,104     4%         715,461     9%                  
equity
                                                                                                               
 Total liabilities               $
and stockholders'   $ 5,863,014 5,833,597   1%          $ 5,640,661 4%         $ 5,049,405 16%                 
equity
                                                                                                               
                   Three Months Ended                                         Six Months Ended                 
                   6/30/2013    3/31/2013   % change   6/30/2012    % change  6/30/2013    6/30/2012   %       
                                                                                                       change
                                                                                                               
Interest income:                                                                                               
 Interest and fees  $ 65,473     $ 63,029   4%          $ 62,504    5%         $ 128,502    $ 125,923  2%      
on loans
 Interest on        3,526        3,427      3%          4,249       -17%       6,953        9,158      -24%    
securities
 Interest on
federal funds       380          287        32%         190         100%       667          417        60%     
sold and other
investments
 Total interest     69,379       66,743     4%          66,943      4%         136,122      135,498    0%      
income
                                                                                                               
Interest expense:                                                                                              
 Interest on        5,647        5,408      4%          5,245       8%         11,055       10,648     4%      
deposits
 Interest on other  1,629        1,619      1%          2,196       -26%       3,248        4,489      -28%    
borrowings
 Total interest     7,276        7,027      4%          7,441       -2%        14,303       15,137     -6%     
expense
                                                                                                               
Net interest
income before       62,103       59,716     4%          59,502      4%         121,819      120,361    1%      
provision for loan
losses
Provision for loan  800          7,506      -89%        7,182       -89%       8,306        9,782      -15%    
losses
Net interest
income after        61,303       52,210     17%         52,320      17%        113,513      110,579    3%      
provision for loan
losses
                                                                                                               
Non-interest                                                                                                   
income:
 Service fees on    2,922        2,875      2%          3,269       -11%       5,797        6,429      -10%    
deposit accounts
 Net gains on       3,295        2,694      22%         2,463       34%        5,989        5,426      10%     
sales of SBA loans
 Net gains on
sales of other      19           43         -56%        146         -87%       62           146        -58%    
loans
 Net gains on
sales of            --           54         -100%       --          0%         54           816        -93%    
securities
available-for-sale
 Net valuation
gains on interest   --           --         0%          10          -100%      --           13         -100%   
swaps and caps
 Net gains(loss)    (11)         2          -650%       (8)         38%        (9)          53         -117%   
on sales of OREO
 Other income and   4,393        4,272      3%          4,342       1%         8,665        8,984      -4%     
fees
 Total
non-interest        10,618       9,940      7%          10,222      4%         20,558       21,867     -6%     
income
                                                                                                               
Non-interest                                                                                                   
expense:
 Salaries and       16,219       16,332     -1%         14,658      11%        32,551       28,737     13%     
employee benefits
 Occupancy          4,835        4,011      21%         4,232       14%        8,846        7,878      12%     
 Furniture and      1,613        1,573      3%          1,468       10%        3,186        2,686      19%     
equipment
 Advertising and    1,190        1,273      -7%         1,525       -22%       2,463        2,983      -17%    
marketing
 Data processing    1,861        1,644      13%         1,573       18%        3,505        3,184      10%     
and communications
 Professional fees  1,443        1,301      11%         1,069       35%        2,744        1,682      63%     
 FDIC assessment    858          694        24%         51          1582%      1,552        1,088      43%     
 Merger and
integration         385          1,305      -70%        1,348       -71%       1,690        3,121      -46%    
expenses
 Other              6,025        5,142      17%         5,153       17%        11,167       10,153     10%     
 Total
non-interest        34,429       33,275     3%          31,077      11%        67,704       61,512     10%     
expense
Income before       37,492       28,875     30%         31,465      19%        66,367       70,934     -6%     
income taxes
Income tax          14,821       11,414     30%         12,101      22%        26,235       27,636     -5%     
provision
Net income          $ 22,671     $ 17,461   30%         $ 19,364    17%        $ 40,132     $ 43,298   -7%     
Dividends and
discount accretion  $ --         $ --       0%          $ (3,771)   -100%      $ --         $ (5,640)  -100%   
on preferred stock
Net income
available to        $ 22,671     $ 17,461   30%         $ 15,593    45%        $ 40,132     $ 37,658   7%      
common
stockholders
                                                                                                               
Earnings Per                                                                                                   
Common Share:
 Basic              $ 0.29       $ 0.22                 $ 0.20                 $ 0.51       $ 0.48             
 Diluted            $ 0.29       $ 0.22                 $ 0.20                 $ 0.51       $ 0.48             
                                                                                                               
Average Shares                                                                                                 
Outstanding:
 Basic              79,062,233   78,389,434             78,007,270             78,746,444   77,997,305         
 Diluted            79,236,732   78,480,671             78,141,527             79,000,811   78,121,259         
                                                                                                               
                                                                                                               
                   Three months ended                                         Six Months Ended                 
                   6/30/2013    3/31/2013   12/31/2012 9/30/2012    6/30/2012 6/30/2013    6/30/2012           
                                                                                                               
Net Income          $ 22,671     $ 17,461    $ 21,527   $ 18,398     $ 19,364  $ 40,132     $ 43,298           
Add back: Income    14,821       11,414      14,947     11,827       12,101    26,235       27,636             
tax
Add back:
Provision for loan  800          7,506       2,422      6,900        7,182     8,306        9,782              
losses
Pre-tax,
pre-provision       $ 38,292     $ 36,381    $ 38,896   $ 37,125     $ 38,647  $ 74,673     $ 80,716           
income (PTPP) ^1
PTPP to average
assets             2.60%        2.54%       2.83%      2.87%        3.03%     2.57%        3.15%               
(annualized)
                                                                                                               
^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, particularly in times of economic stress. It is            
the level of earnings adjusted to exclude the impact of income tax and provision expense.
                                                                                                               
                   (Annualized)                                               (Annualized)
                   At or for the Three Months Ended                           At or for the Six Months         
                                                                              Ended
Profitability      6/30/2013    3/31/2013   6/30/2012                         6/30/2013    6/30/2012           
measures:
 ROA ^2            1.54%        1.22%       1.52%                             1.38%        1.69%               
 ROE ^2            11.58%       9.13%       9.40%                             10.37%       10.62%              
 Return on average
tangible equity    13.21%       10.42%      10.61%                            11.83%       12.01%              
^2,3
 Net interest      4.49%        4.49%       5.02%                             4.49%        5.07%               
margin
 Efficiency ratio  47.34%       47.77%      44.57%                            47.55%       43.25%              
                                                                                                               
^2 based on net income before effect of dividends and discount accretion on preferred stock
^3 Average tangible equity is calculated by subtracting average goodwill and average other intangibles 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
                     6/30/2013                             3/31/2013                            6/30/2012
                                  Interest    Annualized                Interest   Annualized                Interest   Annualized 
                     Average      Income/     Average      Average      Income/    Average      Average      Income/    Average 
                     Balance      Expense     Yield/Cost   Balance      Expense    Yield/Cost   Balance      Expense    Yield/Cost 
                     (Dollars in thousands)                (Dollars in thousands)               (Dollars in thousands)
INTEREST EARNING                                                                                                        
ASSETS:
                                                                                                                        
Gross loans,
includes loans held   $ 4,546,461  $ 65,473   5.78%         $ 4,444,320  $ 63,029  5.75%         $ 3,847,921  $ 62,504 6.53%
for sale 
Securities available  705,479      3,526      2.00%         691,984      3,427     1.98%         692,399      4,249    2.45%
for sale 
FRB and FHLB stock
and other             296,788      380        0.51%         257,526      287       0.45%         203,935      160      0.31%
investments 
Federal funds sold    --           --         0.00%         --           --        0.00%         19,794       30       0.59%
Total interest        $ 5,548,728  $ 69,379   5.01%         $ 5,393,830  $ 66,743  5.01%         $ 4,764,049  $ 66,943 5.65%
earning assets
                                                                                                                        
INTEREST BEARING                                                                                                        
LIABILITIES:
Deposits:                                                                                                               
Demand,               $ 1,285,768  $ 1,937    0.60%         $ 1,265,967  $ 1,873   0.60%         $ 1,184,339  $ 1,849  0.63%
interest-bearing 
Savings               185,584      721        1.56%         186,189      754       1.64%         187,872      830      1.78%
Time deposits:                                                                                                          
$100,000 or more      1,252,934    1,975      0.63%         1,161,322    1,730     0.60%         807,803      1,498    0.75%
Other                 652,766      1,013      0.62%         695,802      1,052     0.61%         652,937      1,068    0.66%
Total time deposits   1,905,700    2,988      0.63%         1,857,124    2,782     0.61%         1,460,740    2,566    0.71%
Total interest        3,377,052    5,646      0.67%         3,309,280    5,409     0.66%         2,832,951    5,245    0.74%
bearing deposits
FHLB advances         421,595      1,218      1.16%         422,944      1,224     1.17%         329,066      1,603    1.95%
Other borrowings      43,559       411        3.73%         42,264       395       3.74%         47,488       593      4.95%
Total interest        3,842,206    $ 7,275    0.76%         3,774,488    $ 7,028   0.75%         3,209,505    $ 7,441  0.93%
bearing liabilities
Non-interest bearing  1,214,984                             1,138,690                            1,021,805              
demand deposits
Total funding
liabilities / cost    $ 5,057,190             0.58%         $ 4,913,178            0.58%         $ 4,231,310           0.71%
of funds
Net interest income
/ net interest                     $ 62,104   4.25%                      $ 59,715  4.26%                      $ 59,502 4.72%
spread
Net interest margin                           4.49%                                4.49%                               5.02%
Net interest margin,
excluding effect of                           4.49%                                4.47%                               5.06%
non-accrual loan
income (expense)
Net interest margin, excluding
effect of non-accrual loan income             4.47%                                4.46%                               5.04%
(expense) and prepayment fee
income
                                                                                                                        
Non-accrual loan
income (reversed)                  $ (77)                                $ 236                                $ (400)   
recognized
Prepayment fee                     306                                   63                                   198       
income received
Net                                $ 229                                 $ 299                                $ (202)   
                                                                                                                        
Cost of deposits:                                                                                                       
Non-interest bearing  $ 1,214,984  $ --                     $ 1,138,690  $ --                    $ 1,021,805  $ --      
demand deposits
Interest bearing      3,377,052    5,646      0.66%         3,309,280    5,409     0.66%         2,832,951    5,245    0.74%
deposits
Total deposits        $ 4,592,036  $ 5,646    0.49%         $ 4,447,970  $ 5,409   0.49%         $ 3,854,756  $ 5,245  0.55%
                                                                                                                        
                                                                                                                        
                     Six Months Ended                       Six Months Ended                                            
                     6/30/2013                             6/30/2012                                                    
                                  Interest    Annualized                 Interest  Annualized                           
                     Average      Income/     Average      Average       Income/   Average                              
                     Balance      Expense     Yield/Cost   Balance       Expense   Yield/Cost                           
                     (Dollars in thousands)                 (Dollars in thousands)                                      
INTEREST EARNING                                                                                                        
ASSETS:
                                                                                                                        
Gross loans,
includes loans held   $ 4,495,673  $ 128,502  5.76%         $ 3,812,708  $ 125,923 6.64%                                
for sale 
Securities available  698,769      6,953      1.99%         709,063      9,158     2.58%                                
for sale 
FRB and FHLB stock
and other             277,266      667        0.48%         230,789      339       0.29%                                
investments 
Federal funds sold    --           --         N/A           22,787       78        0.68%                                
Total interest        $ 5,471,708  $ 136,122  5.01%         $ 4,775,347  $ 135,498 5.70%                                
earning assets
                                                                                                                        
INTEREST BEARING                                                                                                        
LIABILITIES:
Deposits:                                                                                                               
Demand,               $ 1,275,922  $ 3,809    0.60%         $ 1,208,551  $ 3,973   0.66%                                
interest-bearing 
Savings               185,885      1,475      1.60%         191,902      1,752     1.84%                                
Time deposits:                                                                                                          
$100,000 or more      1,207,381    3,705      0.62%         787,468      2,895     0.74%                                
Other                 674,165      2,065      0.62%         687,979      2,029     0.59%                                
Total time deposits   1,881,546    5,770      0.62%         1,475,447    4,924     0.67%                                
Total interest        3,343,353    11,054     0.67%         2,875,900    10,649    0.74%                                
bearing deposits
FHLB advances         422,266      2,442      1.17%         334,515      3,229     1.94%                                
Other borrowings      42,915       806        3.74%         48,798       1,260     5.11%                                
Total interest        3,808,534    $ 14,302   0.76%         3,259,213    $ 15,138  0.93%                                
bearing liabilities
Non-interest bearing  1,177,048                             1,003,307                                                   
demand deposits
Total funding
liabilities / cost    $ 4,985,582             0.58%         $ 4,262,520            0.71%                                
of funds
Net interest income
/ net interest                     $ 121,820  4.25%                      $ 120,360 4.77%                                
spread
Net interest margin                           4.49%                                5.07%                                
Net interest margin,
excluding effect of                           4.48%                                5.10%                                
non-accrual loan
income(expense)
Net interest margin, excluding
effect of non-accrual loan                    4.47%                                5.09%                                
income(expense) and prepayment
fee income
                                                                                                                        
Non-accrual loan
income (reversed)                  $ 160                                 $ (749)                                        
recognized
Prepayment fee                     369                                   314                                            
income received
Net                                $ 529                                 $ (435)                                        
                                                                                                                        
Cost of deposits:                                                                                                       
Non-interest bearing  $ 1,177,048  $ --                     $ 1,003,307  $ --                                           
demand deposits
Interest bearing      3,343,353    11,054     0.67%         2,875,900    10,649    0.74%                                
deposits
Total deposits        $ 4,520,401  $ 11,054   0.49%         $ 3,879,207  $ 10,649  0.55%                                
                                                                                                                        
                      For the Three Months Ended                                    Six Months Ended                    
                     6/30/2013    3/31/2013   % change     6/30/2012    % change   6/30/2013    6/30/2012    % change   
AVERAGE BALANCES                                                                                                        
Gross loans,                       $
includes loans held   $ 4,546,461 4,444,320   2%            $ 3,847,921 18%         4,495,673    3,812,708   18%        
for sale
Investments           1,002,267    949,510    6%            916,128     9%          976,035      962,639     1%         
Interest-earning      5,548,728    5,393,830  3%            4,764,049   16%         5,471,708    4,775,347   15%        
assets
Total assets          5,880,737    5,727,738  3%            5,102,769   15%         5,804,577    5,121,082   13%        
                                                                                                                        
Interest-bearing      3,377,052    3,309,280  2%            2,832,951   19%         3,343,353    2,875,900   16%        
deposits
Interest-bearing      3,842,206    3,774,488  2%            3,209,505   20%         3,808,534    3,259,213   17%        
liabilities
Non-interest-bearing  1,214,984    1,138,690  7%            1,021,805   19%         1,177,048    1,003,307   17%        
demand deposits
Stockholders' Equity  783,181      765,230    2%            823,839     -5%         774,257      815,111     -5%        
Net interest earning  1,706,522    1,619,342  5%            1,554,544   10%         1,663,174    1,516,134   10%        
assets
                                                                                                                        
LOAN PORTFOLIO       6/30/2013    3/31/2013   % change     12/31/2012   % change   6/30/2012    % change                
COMPOSITION: 
                                                                                                                        
Commercial loans      $ 1,060,196  $          -2%           $ 1,073,625 -1%         $ 1,053,319 1%                      
                                  1,078,253
Real estate loans     3,412,620    3,374,732  1%            3,174,759   7%          2,762,944   24%                     
Consumer and other    47,088       48,881     -4%           49,954      -6%         60,732      -22%                    
loans
Loans outstanding     4,519,904    4,501,866  0%            4,298,338   5%          3,876,995   17%                     
Unamortized deferred
loan fees - net of    (1,782)      (1,820)    2%            (2,086)     15%         (2,457)     -27%                    
costs
Loans, net of
deferred loan fees    4,518,122    4,500,046  0%            4,296,252   5%          3,874,538   17%                     
and costs
Allowance for loan    (71,675)     (73,268)   2%            (66,941)    -7%         (65,505)    9%                      
losses
Loan receivable, net  $ 4,446,447  $          0%            $ 4,229,311 5%          $ 3,809,033 17%                     
                                  4,426,778
                                                                                                                        
REAL ESTATE LOANS BY 6/30/2013    3/31/2013   % change     12/31/2012   % change   6/30/2012    % change                
PROPERTY TYPE:
Retail buildings      $ 939,442    $ 914,809  3%            $ 868,567   8%          $ 808,172   16%                     
Hotels/motels         662,011      642,470    3%            609,076     9%          457,088     45%                     
Gas stations/ car     486,282      483,151    1%            428,997     13%         423,344     15%                     
washes
Mixed-use facilities  284,328      303,286    -6%           294,421     -3%         221,865     28%                     
Warehouses            352,693      356,724    -1%           340,433     4%          296,174     19%                     
Multifamily           150,360      147,383    2%            142,610     5%          118,277     27%                     
Other                 537,504      526,909    2%            490,655     10%         438,140     23%                     
Total                 $ 3,412,620  $          1%            $ 3,174,759 7%          $ 2,762,944 24%                     
                                  3,374,732
                                                                                                                        
DEPOSIT COMPOSITION  6/30/2013    3/31/2013   % Change     12/31/2012   % Change   6/30/2012    % Change                
Non-interest-bearing  $ 1,210,563  $          2%            $ 1,184,285 2%          $ 1,064,013 14%                     
demand deposits                   1,182,509
Money market and      1,261,905    1,269,388  -1%           1,248,304   1%          1,143,329   10%                     
other
Saving deposits       181,672      192,208    -5%           180,686     1%          183,087     -1%                     
Time deposits of      1,276,147    1,237,366  3%            1,088,611   17%         834,719     53%                     
$100,000 or more
Other time deposits   646,512      674,203    -4%           682,149     -5%         657,532     -2%                     
Total deposit         $ 4,576,799  $          0%            $ 4,384,035 4%          $ 3,882,680 18%                     
balances                          4,555,674
                                                                                                                        
DEPOSIT COMPOSITION  6/30/2013    3/31/2013   12/31/2012   6/30/2012                                                    
(%)
Non-interest-bearing 26.4%        26.0%       27.0%        27.4%                                                        
demand deposits
Money market and     27.6%        27.9%       28.6%        29.4%                                                        
other
Saving deposits      4.0%         4.2%        4.1%         4.7%                                                         
Time deposits of     27.9%        27.2%       24.8%        21.5%                                                        
$100,000 or more
Other time deposits  14.1%        14.8%       15.6%        16.9%                                                        
Total deposit        100.0%       100.0%      100.0%       100.0%                                                       
balances
                                                                                                                        
                                                                                                                        
CAPITAL RATIOS       6/30/2013    3/31/2013   12/31/2012   6/30/2012                                                    
Total stockholders'   $ 781,025    $ 772,275   $ 751,104    $ 715,461                                                   
equity
Tier 1 risk-based    14.89%       14.62%      14.91%       15.54%                                                       
capital ratio 
Total risk-based     16.14%       15.88%      16.16%       16.80%                                                       
capital ratio 
Tier 1 leverage      12.61%       12.64%      12.76%       12.97%                                                       
ratio 
Book value per        $ 9.86       $ 9.79      $ 9.62       $ 9.14                                                      
common share
Tangible common       $ 8.65       $ 8.57      $ 8.43       $ 7.94                                                      
equity per share^4
Tangible common
equity to tangible   11.88%       11.77%      11.86%       12.49%                                                       
assets^4
                                                                                                                        
^4 Tangible common equity to tangible assets is a non-GAAP financial measure that represents common equity less goodwill and other
intangible assets, net divided by total assets less goodwill and other intangible assets, net. Management reviews tangible common
equity to tangible assets in evaluating the Company's capital levels and has included this ratio in response to market participant
interest in tangible common equity as a measure of capital. 
                                                                                                                        
Reconciliation of GAAP financial measures to non-GAAP                                                                                
financial measures:
                                                                                                                        
                     6/30/2013    3/31/2013   12/31/2012   6/30/2012                                                    
Total stockholders'   $ 781,025    $ 772,275   $ 751,104    $ 715,461                                                   
equity
Less: Common stock    (378)        (378)       (378)        (2,760)                                                     
warrant
Goodwill and other
intangible assets,    (95,413)     (96,805)    (92,911)     (93,518)                                                    
net
Tangible common       $ 685,234    $ 675,092   $ 657,815    $ 619,183                                                   
equity
                                                                                                                        
Total assets          $ 5,863,014  $           $ 5,640,661  $ 5,049,405                                                 
                                  5,833,597
Less: Goodwill and
other intangible      (95,413)     (96,805)    (92,911)     (93,518)                                                    
assets, net
Tangible assets       $ 5,767,601  $           $ 5,547,750  $ 4,955,887                                                 
                                  5,736,792
                                                                                                                        
Common shares         79,205,840   78,812,140  78,041,511   78,014,107                                                  
outstanding
                                                                                                                        
Tangible common
equity to tangible   11.88%       11.77%      11.86%       12.49%                                                       
assets
Tangible common       $ 8.65       $ 8.57      $ 8.43       $ 7.94                                                      
equity per share
                                                                                                                        
                                                                                                                        
                      For the Three Months Ended                                    Six Months Ended                    
ALLOWANCE FOR LOAN   6/30/2013    3/31/2013   12/31/2012   9/30/2012    6/30/2012  6/30/2013    6/30/2012               
LOSSES:
Balance at beginning  $ 73,268     $ 66,941    $ 65,952     $ 65,505     $ 62,309   $ 66,941     $ 61,952               
of period
Provision for loan    800          7,506       2,422        6,900        7,182      8,306        9,782                  
losses
Recoveries            507          250         587          1,316        1,623      757          2,762                  
Charge offs           (2,900)      (1,429)     (2,020)      (7,769)      (5,609)    (4,329)      (8,991)                
Balance at end of     $ 71,675     $ 73,268    $ 66,941     $ 65,952     $ 65,505   $ 71,675     $ 65,505               
period
Net
charge-off/average   0.21%        0.11%       0.13%        0.64%        0.41%      0.16%        0.33%                   
gross loans
(annualized)
                                                                                                                        
                     For the Three Months Ended                                    Six Months Ended                     
NET CHARGED OFF      6/30/2013    3/31/2013   12/31/2012   9/30/2012    6/30/2012  6/30/2013    6/30/2012               
LOANS BY TYPE
                                                                                                                        
Real estate loans     $ 744        $ 1,014     $ 651        $ 1,101      $ 1,377    $ 1,758      $ 2,987                
Commercial loans      1,684        150         627          5,403        2,158      1,834        2,789                  
Consumer loans        (35)         15          155          (51)         451        (20)         453                    
 Total net            $ 2,393      $ 1,179     $ 1,433      $ 6,453      $ 3,986    $ 3,572      $ 6,229                
charge-offs
                                                                                                                        
                                                                                                                        
NON-PERFORMING       6/30/2013    3/31/2013   12/31/2012   9/30/2012    6/30/2012                                       
ASSETS
Delinquent loans 90
days or more on       $ 44,987     $ 42,269    $ 29,653     $ 29,369     $ 39,567                                       
non-accrual status
Delinquent loans 90
days or more on       18,786       21,621      17,742       22,454       20,708                                         
accrual status^5
Accruing              36,225       32,249      29,839       22,175       22,994                                         
restructured loans
Total non-performing  99,998       96,139      77,234       73,998       83,269                                         
loans
Other real estate     9,596        8,419       2,698        4,135        6,712                                          
owned
Total non-performing  $ 109,594    $ 104,558   $ 79,932     $ 78,133     $ 89,981                                       
assets
Non-performing       1.87%        1.79%       1.42%        1.47%        1.78%                                           -- 
assets/ total assets
Non-performing
assets/ gross loans  2.42%        2.32%       1.86%        1.92%        2.32%                                           
& OREO
Non-performing
assets/ total        14.03%       13.54%      10.64%       10.64%       12.58%                                          
capital
Non-performing       2.21%        2.14%       1.80%        1.82%        2.15%                                           
loans/gross loans
Non-accrual          1.00%        0.94%       0.69%        0.72%        1.02%                                           
loans/gross loans
Allowance for loan   1.59%        1.63%       1.56%        1.62%        1.69%                                           
losses/ gross loans
Allowance for loan
losses/ non-accrual  159.32%      173.34%     225.75%      224.56%      165.55%                                         
loans
Allowance for loan
losses/
non-performing loans
(excludes delinquent 88.26%       98.32%      112.52%      127.95%      104.71%                                         
loans 90 days or
more on accrual
status^5)
Allowance for loan
losses/              65.40%       70.07%      83.75%       84.41%       72.80%                                          
non-performing
assets
                                                                                                                        
^5 All such loans represent acquired loans that were originally recorded at fair
value upon acquisition. These loans are considered to be accruing as we can
reasonably estimate future cash flows on acquired loans and we expect to fully                                          
collect the carrying value of these loans. Therefore, we are accreting the
difference between the carrying value of these loans and their expected cash
flows.
                                                                                                                        
                                                                                                                        
BREAKDOWN OF
ACCRUING             6/30/2013    3/31/2013   12/31/2012   9/30/2012    6/30/2012                                       
RESTRUCTURED LOANS
BY TYPE:
Retail buildings      $ 6,812      $ 2,556     $ 3,301      $ 1,915      $ 1,526                                        
Hotels/motels         8,623        8,701       8,774        8,841        8,909                                          
Gas stations/ car     --           --          --           --           --                                             
washes
Mixed-use facilities  811          816         --           --           2,312                                          
Warehouses            489          492         494          1,045        1,052                                          
Multifamily           --           3,247       3,247        --           --                                             
Other^6               19,490       16,437      14,023       10,374       9,195                                          
Total                 $ 36,225     $ 32,249    $ 29,839     $ 22,175     $ 22,994                                       
^6 Includes commercial business and other                                                                                            
loans
                                                                                                                        
                                                                                                                        
DELINQUENT LOANS
LESS THAN 90 DAYS    6/30/2013    3/31/2013   12/31/2012   9/30/2012    6/30/2012                                       
PAST DUE
                                                                                                                        
Legacy                                                                                                                  
30 - 59 days          $ 2,056      $ 1,174     $ 968        $ 3,056      $ 5,479                                        
60 - 89 days          85           2,411       349          517          833                                            
Total delinquent
loans less than 90    $ 2,141      $ 3,585     $ 1,317      $ 3,573      $ 6,312                                        
days past due -
legacy^7
                                                                                                                        
Acquired                                                                                                                
30 - 59 days          $ 8,590      $ 22,552    $ 7,411      $ 4,062      $ 3,601                                        
60 - 89 days          5,574        3,848       16,835       2,438        6,080                                          
Total delinquent
loans less than 90    $ 14,164     $ 26,400    $ 24,246     $ 6,500      $ 9,681                                        
days past due -
acquired^7
                                                                                                                        
Total delinquent
loans less than 90    $ 16,305     $ 29,985    $ 25,563     $ 10,073     $ 15,993                                       
days past due^7
                                                                                                                        
DELINQUENT LOANS
LESS THAN 90 DAYS    6/30/2013    3/31/2013   12/31/2012   9/30/2012    6/30/2012                                       
PAST DUE BY TYPE
                                                                                                                        
Legacy                                                                                                                  
Real estate loans     $ 853        $ 2,870     $ 595        $ 2,448      $ 5,269                                        
Commercial loans      1,267        692         532          1,108        1,027                                          
Consumer loans        21           23          190          17           16                                             
Total delinquent
loans less than 90    $ 2,141      $ 3,585     $ 1,317      $ 3,573      $ 6,312                                        
days past due -
legacy^7
                                                                                                                        
Acquired                                                                                                                
Real estate loans     $ 11,433     $ 14,437    $ 21,598     $ 3,813      $ 6,631                                        
Commercial loans      2,461        11,294      2,533        2,318        2,422                                          
Consumer loans        270          669         115          369          628                                            
Total delinquent
loans less than 90    $ 14,164     $ 26,400    $ 24,246     $ 6,500      $ 9,681                                        
days past due -
acquired^7
                                                                                                                        
Total delinquent
loans less than 90    $ 16,305     $ 29,985    $ 25,563     $ 10,073     $ 15,993                                       
days past due^7
                                                                                                                        
                                                                                                                        
NON-ACCRUAL LOANS BY 6/30/2013    3/31/2013   12/31/2012   9/30/2012    6/30/2012                                       
TYPE
                                                                                                                        
Real estate loans     $ 34,577     $ 33,751    $ 20,430     $ 22,254     $ 27,822                                       
Commercial loans      9,629        7,591       8,253        6,208        11,463                                         
Consumer loans        781          927         970          907          282                                            
Total non-accrual     $ 44,987     $ 42,269    $ 29,653     $ 29,369     $ 39,567                                       
loans^7
                                                                                                                        
CRITICIZED LOANS     6/30/2013    3/31/2013   12/31/2012   9/30/2012    6/30/2012                                       
Legacy                                                                                                                  
Special mention       $ 66,774     $ 59,681    $ 25,279     $ 32,708     $ 48,701                                       
Substandard           97,692       94,303      94,335       92,091       88,537                                         
Doubtful              152          455         474          597          5,530                                          
Loss                  --           22          --           --           --                                             
Total criticized      $ 164,618    $ 154,461   $ 120,088    $ 125,396    $ 142,768                                      
loans - legacy^7
                                                                                                                        
Acquired                                                                                                                
Special mention       $ 42,014     $ 52,722    $ 54,310     $ 61,951     $ 60,686                                       
Substandard           121,758      133,398     113,610      95,387       110,370                                        
Doubtful              368          327         415          202          261                                            
Loss                  707          849         245          77           11                                             
 Total criticized     $ 164,847    $ 187,296   $ 168,580    $ 157,617    $ 171,328                                      
loans - acquired^7
                                                                                                                        
 Total criticized     $ 329,465    $ 341,757   $ 288,668    $ 283,013    $ 314,096                                      
loans^7
                                                                                                                        
^7 Excludes the guaranteed portion of delinquent SBA loans as these are 100% guaranteed by the SBA.

CONTACT: Angie Yang
         SVP, Investor Relations
         213-251-2219
         angie.yang@BBCNbank.com

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