BBCN Bancorp Reports 2014 First Quarter Financial Results

BBCN Bancorp Reports 2014 First Quarter Financial Results  Q1 2014 Summary:    *Net income totals $22.2 million, or $0.28 per diluted common share   *New loan production for the quarter amounts to $298 million   *Loans receivable increase to $5.19 billion, reflecting a 2% increase over     December 31, 2013   *Total deposits increase to $5.33 billion, reflecting a 4% increase during     the quarter   *Total assets increase to $6.67 billion, reflecting a 3% increase over the     preceding quarter  LOS ANGELES, April 21, 2014 (GLOBE NEWSWIRE) -- BBCN Bancorp, Inc. (the "Company") (Nasdaq:BBCN), the holding company of BBCN Bank (the "Bank"), today reported net income of $22.2 million, or $0.28 per diluted common share, for the three months ended March 31, 2014. This compares with net income of $18.1 million, or $0.23 per diluted common share, for the preceding 2013 fourth quarter and $17.5 million, or $0.22 per diluted common share, for the year-ago first quarter.  "We are very pleased to have started off 2014 with another strong quarter of loan production, which, together with the benefits from the two acquisitions completed last year, contributed to a 10% increase in revenue generation over the prior-year period," said Kevin S. Kim, Chairman and Chief Executive Officer of BBCN Bancorp, Inc. "We originated more than $298 million in new loans during the first quarter of 2014, reflecting a 35% increase over the first quarter a year ago. We attribute the robust levels of originations to the dedicated efforts of our skilled relationship managers on our lending teams and our leadership as the dominant Korean-American bank in all five of our core geographic markets. We continue to maintain a high level of profitability, with our annualized pre-tax, pre-provision earnings representing 2.44% of average assets, which is resulting in a significant amount of capital being generated for reinvestment in the Company. Looking forward into 2014, we believe BBCN is well positioned with a best-in-class executive management team and an expanding product and service offering to further the growth of our franchise for the benefit of our customers, employees and shareholders."  Financial Highlights  (Dollars in thousands, except per share At or for the Three Months Ended data)                                        3/31/2014    12/31/2013   3/31/2013 Net income                              $22,196    $18,071    $17,461 Diluted earnings per share              $0.28      $0.23      $0.22 Net interest income before provision    $64,966    $66,876    $59,716 for loan losses Net interest margin                     4.29%        4.45%        4.49% Noninterest income                      $11,095    $11,356    $9,940 Noninterest expense                     $36,275    $38,164    $33,275 Net loans receivable                    $5,125,095 $5,006,856 $4,426,778 Deposits                                $5,334,560 $5,148,057 $4,555,674 Nonaccrual loans ^(1)                   $47,134    $39,154    $42,269 ALLL to loans receivable                1.27%        1.33%        1.63% ALLL to nonaccrual loans ^(1)           138.86%      171.94%      173.34% ALLL to nonperforming assets ^(1) (2)   62.66%       69.15%       88.34% Provision for loan losses               $3,026     $10,950    $7,506 Net charge offs                         $4,647     $9,345     $1,179 ROA                                     1.36%        1.13%        1.22% ROE                                     10.48%       8.92%        9.13% Efficiency ratio                        47.69%       48.78%       47.77%                                                                  ^(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $31.2 million, $27.5 million and $18.6 million at March 31, 2014,December 31, 2013 and March 31, 2013, respectively. ^(2) Nonperforming assets exclude acquired credit impaired loans totaling $46.0 million, $43.8 million and $21.6 million at March 31, 2014, December 31, 2013and March 31, 2013, respectively.  Operating Results for the First Quarter of 2014  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 March 31, 2014, December 31, 2013 and March 31, 2013 include the following pre-tax acquisition accounting adjustments related to mergers:                                               Three Months Ended                                              March 31, December 31, March 31,                                              2014      2013         2013 Accretion of discount on acquired performing  $3,202  $4,873     $4,076 loans Accretion of discount on acquired credit      2,645     2,480        1,522 impaired loans Amortization of premium on acquired FHLB      92        94           91 borrowings Accretion of discount on acquired             (91)      (107)        (43) subordinated debt Amortization of premium on acquired time      314       369          438 deposits Increase to pre-tax income                    $6,162  $7,709     $6,084  Net Interest Income and Net Interest Margin.Net interest income before provision for loan losses for the first quarter of 2014 totaled $65.0 million, compared with $66.9 million in the preceding fourth quarter of 2013.The Company attributed the decline largely to a decline in the net interest margin.Compared with prior-year first quarter, net interest income before provision for loan losses for the current first quarter increased 9%, largely reflecting a 14% increase in the average interest earning assets.  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                                3/31/2014 12/31/2013 change  3/31/2013 change Net interest margin, excluding the effect of acquisition       3.82%     3.87%      (0.05)% 3.97%     (0.15)% accounting adjustments Acquisition accounting          0.47      0.58       (0.11)  0.52      (0.05) adjustments Net interest margin             4.29%     4.45%      (0.16)% 4.49%     (0.20)%  The net interest margin for the 2014 first quarter decreased 16 basis points from the preceding 2013 fourth quarter to 4.29%.On a core basis, excluding the effect of acquisition accounting adjustments, the net interest margin for the 2014 first quarter decreased only 5 basis points from the preceding 2013 fourth quarter.  Compared with the prior-year period, net interest margin for the 2014 first quarter declined 20 basis points.Excluding the effect of acquisition accounting adjustments, the core net interest margin for the first quarter of 2014 declined 15 basis points from the year-ago period.  The Company largely attributed the declines in the net interest margin from the comparable periods to decreases in the weighted average yield on loans.  The weighted average yield on loans and the impact of acquisition accounting adjustments are summarized in the following table:                                 Three Months Ended                                3/31/2014 12/31/2013 change  3/31/2013 change Weighted average yield on loans, excluding the effect of  4.83%     4.90%      (0.07)% 5.15%     (0.32)% acquisition accounting adjustments Acquisition accounting          0.54      0.69       (0.15)  0.60      0.06 adjustments Weighted average yield on loans 5.37%     5.59%      (0.22)% 5.75%     (0.38)%  The weighted average yield on loans for the 2014 first quarter decreased 22 basis points from the preceding 2013 fourth quarter, but decreased only 7 basis points on a core basis when excluding the effect of acquisition accounting adjustments.The weighted average yield on new loans originated during the 2014 first quarter was 4.53%, reflecting a 3 basis point increase from 4.50% for the preceding 2013 fourth quarter.Compared with the prior-year period, the weighted average yield on loans for the 2014 first quarter decreased 38 basis points and 32 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:                                 3/31/2014 12/31/2013 change  3/31/2013 change Fixed rate loans                                                    As a percentage of total loans  49%       48%        2%      40%       23% Weighted average contractual    4.90%     4.99%      (0.09)% 5.47%     (0.57)% rate Variable rate loans                                                 As a percentage of total loans  51%       52%        (2)%    60%       (15)% Weighted average contractual    4.33%     4.37%      (0.04)% 4.49%     (0.16)% rate  The decrease in the weighted average contractual rate for fixed rate loans for the 2014 first quarter reflects what continues to be a highly competitive rate environment for fixed rate commercial real estate loans in the current interest rate environment.  The weighted average cost of deposits and the impact of acquisition accounting adjustments are summarized in the following table:                                   Three Months Ended                                  3/31/2014 12/31/2013 change 3/31/2013 change Weighted average cost of deposits, excluding the effect of 0.55%     0.52%      0.03%  0.53%     0.02% acquisition accounting adjustments Acquisition accounting            (0.03)    (0.02)     (0.01) (0.04)    0.01 adjustments Weighted average cost of deposits 0.52%     0.50%      0.02%  0.49%     0.03%  The weighted average cost of deposits for the 2014 first quarter was relatively stable with the preceding fourth quarter, up 2 basis points on a reported basis and up 3 basis points on a core basis, excluding the effect of amortization of premium on time deposits assumed in mergers. Compared with the prior-year period, the weighted average cost of deposits for the 2014 first quarter increased 3 basis points and increased 2 basis points on a core basis, excluding the effect of premium amortization on time deposits assumed in mergers.  Noninterest Income.Total noninterest income for the 2014 first quarter amounted to $11.1 million, reflecting a 2% decrease from $11.4 million in the preceding 2013 fourth quarter and a 12% increase over $9.9 million in the prior-year first quarter. The modest decrease in noninterest income from the preceding quarter was primarily attributable lower levels of service fees on deposit accounts and other income and fees.The increase in total noninterest income for the 2014 first quarter over the prior-year period predominantly reflects higher levels of service fees on deposit accounts as a result of the Foster and Pacific International acquisitions.  Noninterest Expense. Total noninterest expense for the first quarter of 2014 amounted to $36.3 million, reflecting a 5% decrease from $38.2 million in the preceding 2013 fourth quarter and a 9% increase over $33.3 million in the prior-year first quarter.Salaries and benefits expense for the 2014 first quarter included separation payments related to the retirement of the Bank's former chief executive officer.Compared with the prior-year first quarter, the increase in salaries and benefits expense reflects the increase in FTEs related to Foster, as well as the full quarter impact of the Pacific International the acquisition completed February 15, 2013.The total number of FTEs was 860 as of March 31, 2014, 835 as of December 31, 2013, and 762 as of March 31, 2013.  In addition, the Company noted that total noninterest expenses include merger and integration related expenses, which totaled $173,000, $2.5 million, and $1.3 million for the 2014 first quarter, the 2013 fourth quarter and 2013 first quarter, respectively.Merger and integration related expenses for the 2014 first quarter included miscellaneous expenses associated with the integration of Foster Bankshares.  Income Tax Provision.The effective tax rate for the 2014 first quarter was 39.6%, compared with 37.9% for the preceding 2013 fourth quarter and 39.5% for the 2013 first quarter.  Balance Sheet Summary  Loans receivable totaled $5.19 billion at March 31, 2014, reflecting a 2% increase over $5.07 billion at December 31, 2013, and an increase of 15% over $4.50 billion a year earlier at March 31, 2013.  Total new loan originations during the first quarter of 2014 amounted to $296.7 million, including SBA loan originations of $42.3 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 $38.1 million for the first quarter of 2014, compared with $35.5 million for the preceding 2013 fourth quarter.During the 2014 first quarter, the Company sold $30.3 million of its SBA loans held for sale.  Aggregate pay offs and pay downs during the 2014 first quarter amounted to $195.9 million, compared with $209.7 million for the preceding fourth quarter and $154.5 million for the year-ago first quarter.  Total deposits amounted to $5.33 billion at March 31, 2014, compared with $5.15 billion at December 31, 2013 and $4.56 billion a year earlier at March 31, 2013.The increase from the end of the prior quarter is attributed to increases across all deposit categories with the exception of savings deposits.Noninterest bearing deposits at March 31, 2014 totaled $1.44 billion and accounted for 27% of total deposits.  Credit Quality  The provision for loan losses for the 2014 first quarter was $3.0 million, compared with $11.0 million for the preceding 2013 fourth quarter and $7.5 million for the prior-year first 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 March 31, 2014, December 31, 2013, and March 31, 2013 is as follows:  (dollars in thousands)              3/31/2014    12/31/2013   3/31/2013 Legacy Loans ^(1)                   $58,203    $59,978    $62,469 Acquired Performing Loans ^(2)      1,937        2,564        6,265 Acquired Credit Impaired Loans ^(2) 5,560        4,778        4,534 Total ALLL                          $65,700    $67,320    $73,268                                                             Loans receivable                    $5,190,795 $5,074,176 $4,500,046 ALLL coverage ratio                 1.27%        1.33%        1.63%  ^(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 March 31, 2014, December 31, 2013, and March 31, 2013:  (dollars in thousands) 3/31/2014  12/31/2013 3/31/2013 Special Mention ^(1)   $93,553  $89,489  $112,403 Classified ^(1)        $253,342 $266,361 $229,354 Criticized            $346,895 $355,850 $341,757  ^(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 loan balances) and accruing restructured loans.Nonperforming loans at March 31, 2014 totaled $84.8 million, or 1.63% of loans receivable.This includes the addition of an aggregate $4.2 commercial credit relationship, which was downgraded to nonaccrual status during the 2014 first quarter, but for which a $2.6 million specific reserve was established and subsequently included in the Company's 2013 fourth quarter financial results, as previously reported.Following a $3.0 million charge off related to this credit, a $1.2 million outstanding balance remains in nonaccrual.In comparison, nonperforming loans totaled $73.1 million, or 1.44% of loans receivable, at December 31, 2013 and $74.5 million, or 1.66% of loans receivable, at March 31, 2013.  Nonperforming assets, including other real estate owned, amounted to $104.8 million at March 31, 2014, or 1.57% of total assets, compared with $97.4 million, or 1.50% of total assets, at December 31, 2013 and $82.9 million, or 1.42% of total assets, at March 31, 2013.  Net loan charge-offs for the 2014 first quarter totaled $4.6 million, including the $3.0 million charge off mentioned above, and equaled 0.36% of average loans on an annualized basis.This compares with net loan charge offs of $9.3 million, or 0.75% of average loans on an annualized basis, for the preceding 2013 fourth quarter and $1.2 million, or 0.11% of average loans on an annualized basis, for the year-ago first quarter.  The allowance for loan losses at March 31, 2014 was $65.7 million, or 1.27% of gross loans receivable (excluding loans held for sale), compared with $67.3 million, or 1.33%, at December 31, 2013 and $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 77.44% at March 31, 2014, compared with 92.14% at December 31, 2013 and 98.32% at March 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) totaled $121.8 million at March 31, 2014, compared with $116.3 million at December 31, 2013 and $102.0 million at March 31, 2013.  Capital  At March 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.                         3/31/2014 12/31/2013 3/31/2013 Leverage Ratio          11.79%    11.97%     12.64% Tier 1 Risk-based Ratio 13.46%    13.66%     14.62% Total Risk-based Ratio  14.70%    14.90%     15.88%  As previously disclosed, on March 17, 2014, the Company redeemed $15.0 million in trust preferred securities issued by Foster.  Tangible common equity per share and as a percentage of tangible assets are summarized in the following table:                                                3/31/2014 12/31/2013 3/31/2013 Tangible common equity per share ^(1)          $9.08     $8.79      $8.57 Tangible common equity to tangible assets ^(1) 11.00%    10.97%     11.77%  ^(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, April 22, 2014 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for the first quarter of 2014.Investors and analysts may access the conference call by dialing 800-762-8779 (domestic) or 480-629-9645 (international), passcode 4678728 or "BBCN Bancorp." 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 remain available in the Investor Relations section of BBCN Bancorp's website for one year.A replay of the call will be available at 800-406-7325 (domestic) or 303-590-3030 (international) through April 29, 2014, passcode 4678728.  About BBCN Bancorp, Inc.  BBCN Bancorp, Inc. is the holding company of BBCN Bank, the largest Korean-American bank in the nation with $6.7 billion in assets as of March 31, 2014. Headquartered in Los Angeles and serving a diverse mix of customers mirroring its communities, BBCN operates 49 branches in California, New York, New Jersey, Illinois, Washington and Virginia, along with six loan production offices in Seattle, Denver, Dallas, Atlanta, Northern California and Annandale, Virginia. BBCN specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and business lending, SBA lending and international trade financing. BBCN Bank is a California-chartered bank and its deposits are insured by the FDIC to the extent provided by law. BBCN is an Equal Opportunity Lender.  Forward-Looking Statements  This press release contains forward-looking statements, including statements about future operations and projected full-year financial results that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward looking statements. These risks and uncertainties include but are not limited to economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services, and pricing. Readers should carefully review the risk factors and the information that could materially affect the Company's financial results and business, described in documents the Company files from time to time with the Securities and Exchange Commission, including its quarterly reports on Form 10-Q and Annual Reports on Form 10-K, and particularly the discussions of business considerations and certain factors that may affect results of operations and stock price set forth therein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements.                                 (tables follow)  BBCN Bancorp, Inc. Consolidated Financial Statements and Selected Financial Data Unaudited (Dollars in Thousands, Except per Share Data)                                                                                                                                   Assets              3/31/2014    12/31/2013   % change  3/31/2013    % change                                                                  Cash and due from   $403,111   $316,705   27%       $280,813   44% banks Securities available for sale, 725,229     705,751     3%        717,441     1% at fair value Federal Home Loan Bank and Federal    27,902      27,941      0%        24,308      15% Reserve Bank stock Loans held for sale, at the lower  38,157      44,115      -14%      48,941      -22% of cost or fair value Loans receivable    5,190,794   5,074,176   2%        4,500,046   15% Allowance for loan  (65,699)    (67,320)    -2%       (73,268)    -10% losses Net loans          5,125,095   5,006,856   2%        4,426,778   16% receivable Accrued interest    13,410      13,403      0%        13,271      1% receivable Premises and        31,290      30,894      1%        22,960      36% equipment, net Bank owned life     45,062      44,770      1%        44,079      2% insurance Goodwill            105,401     105,401     0%        93,404      13% Other intangible    4,859       5,184       -6%       3,401       43% assets, net Other assets        148,035     174,179     -15%      158,201     -6% Total assets       $6,667,551 $6,475,199 3%        $5,833,597 14%                                                                  Liabilities                                                                                                                        Deposits            $5,334,560 $5,148,057 4%        $4,555,674 17% Borrowings from Federal Home Loan   421,260     421,352     0%        421,632     0% Bank Subordinated        42,037      57,410      -27%      45,996      -9% debentures Accrued interest    5,740       4,821       19%       4,325       33% payable Other liabilities   31,795      34,185      -7%       33,695      -6% Total liabilities  5,835,392   5,665,825   3%        5,061,322   15%                                                                  Stockholders'                                                     Equity Common stock, $0.001 par value; authorized, 150,000,000 shares at March 31, 2014, December 31, 2013 and March 31, 2013; issued and          79          79          0%        79          0% outstanding, 79,488,899, 79,441,525 and 78,812,140 at March 31, 2014, December 31, 2013 and March 31, 2013, respectively Capital surplus     540,979     540,876     0%        535,091     1% Retained earnings   294,842     278,604     6%        230,149     28% Accumulated other comprehensive       (3,741)     (10,185)    -63%      6,956       -154% income, net Total stockholders'       832,159     809,374     3%        772,275     8% equity                                                                  Total liabilities and stockholders'   $6,667,551 $6,475,199 3%        $5,833,597 14% equity                                                                                                                                                      Three Months Ended                    3/31/2014    12/31/2013   % change  3/31/2013    % change                                                                  Interest income:                                                  Interest and fees  $68,694    $70,435    -2%       $63,029    9% on loans Interest on        4,095       3,971       3%        3,427       19% securities Interest on federal funds       565         510         11%       287         97% soldand other investments Total interest     73,354      74,916      -2%       66,743      10% income                                                                  Interest expense:                                                 Interest on        6,690       6,307       6%        5,408       24% deposits Interest on other  1,698       1,733       -2%       1,619       5% borrowings Total interest     8,388       8,040       4%        7,027       19% expense                                                                  Net interest income before provision    64,966      66,876      -3%       59,716      9% for loan losses Provision for loan  3,026       10,950      -72%      7,506       -60% losses Net interest income after provision for 61,940      55,926      11%       52,210      19% loan losses                                                                  Noninterest income:                                               Service fees on    3,472       3,720       -7%       2,875       21% deposit accounts Net gains on sales 2,722       2,699       1%        2,694       1% of SBA loans Net gains on sales --         --         0%        43          -100% of other loans Net gains on sales of securities       --         --         0%        54          -100% available-for-sale Net valuation gains on interest   --         --         0%        --         0% swaps and caps Net gains (loss)   406         (45)        -1002%    2           20200% on sales of OREO Other income and   4,495       4,982       -10%      4,272       5% fees Total noninterest  11,095      11,356      -2%       9,940       12% income                                                                  Noninterest                                                       expense: Salaries and       18,938      17,719      7%        16,332      16% employee benefits Occupancy          4,623       4,470       3%        4,011       15% Furniture and      2,014       1,895       6%        1,573       28% equipment Advertising and    1,088       1,328       -18%      1,273       -15% marketing Data processing    2,122       2,107       1%        1,644       29% and communications Professional fees  1,313       1,010       30%       1,301       1% FDIC assessment    1,023       939         9%        694         47% Merger and integration         173         2,540       -93%      1,305       -87% expenses Other              4,981       6,156       -19%      5,142       -3% Total noninterest  36,275      38,164      -5%       33,275      9% expense Income before       36,760      29,118      26%       28,875      27% income taxes Income tax          14,564      11,047      32%       11,414      28% provision Net income         $22,196    $18,071    23%       $17,461    27%                                                                  Earnings Per Common                                               Share: Basic              $0.28      $0.23               $0.22       Diluted            $0.28      $0.23               $0.22                                                                        Average Shares                                                    Outstanding: Basic              79,489,579  79,350,797           78,389,434   Diluted            79,639,479  79,520,193           78,480,671                                                                                                                                                        Three months ended                    3/31/2014    12/31/2013   9/30/2013 6/30/2013    3/31/2013                                                                  Net Income          $22,196    $18,071    $23,552 $22,671    $17,461 Add back: Income    14,564      11,047      15,117   14,821      11,414 tax Add back: Provision 3,026       10,950      744      800         7,506 for loan losses Pre-tax, pre-provision       $39,786    $40,068    $39,413 $38,292    $36,381 income (PTPP) ^1 PTPP to average     2.44%        2.51%        2.56%     2.60%        2.54% assets (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 earningsadjusted to exclude the impact of income tax and provision expense.                                    At or for the Three Months Ended (Annualized) Profitability measures:          3/31/2014      12/31/2013      3/31/2013 ROA                            1.36%          1.13%           1.22% ROE                            10.84%         8.92%           9.13% Return on average tangible      12.52%         10.51%          10.42% equity ^2 Net interest margin             4.29%          4.45%           4.49% Efficiency ratio                47.69%         48.78%          47.77%                                                                ^2 Average tangible equity is calculated by subtracting average goodwill and average other intangibles from average stockholders' equity. This is non-GAAP measure that we believeprovides investors wth information that is useful in understanding our financial performance and position.                    Three Months Ended                Three Months Ended                Three Months Ended                  3/31/2014                         12/31/2013                        3/31/2013                              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:                                                                                                      Gross loans, includes loans    $5,183,801 $68,694 5.37%      $4,999,586 $70,435 5.59%      $4,444,313 $63,029 5.75% held for sale Securities available for     698,931     4,095    2.34%      702,886     3,971    2.26%      691,984     3,427    1.98% sale FRB and FHLB stock and other   259,107     565      0.87%      258,270     510      0.77%      257,526     287      0.45% investments Federal funds    --         --      NA         --         --      NA         --         --      NA sold Total interest    $6,141,839 $73,354 4.84%      $5,960,742 $74,916 4.99%      $5,393,823 $66,743 5.01% earning assets                                                                                                      INTEREST BEARING                                                                                      LIABILITIES: Deposits:                                                                                            Demand,          $1,392,300 $2,277  0.66%      $1,327,322 $2,082  0.62%      $1,265,967 $1,873  0.60% interest-bearing Savings         217,426     600      1.12%      226,638     657      1.15%      186,189     754      1.64% Time deposits:                                                                                       $100,000 or more 1,561,170   2,679    0.70%      1,468,459   2,413    0.65%      1,161,322   1,730    0.60% Other            663,978     1,134    0.69%      662,029     1,155    0.69%      695,802     1,051    0.61% Total time       2,225,148   3,813    0.69%      2,130,488   3,568    0.66%      1,857,124   2,781    0.61% deposits Total interest   3,834,874   6,690    0.71%      3,684,448   6,307    0.68%      3,309,280   5,408    0.66% bearing deposits FHLB advances    421,318     1,211    1.17%      420,319     1,204    1.14%      422,944     1,224    1.17% Other borrowings 52,400      487      3.72%      56,453      529      3.67%      42,264      395      3.74% Total interest bearing           4,308,592   $8,388  0.79%      4,161,220   $8,040  0.77%      3,774,488   $7,027  0.75% liabilities Noninterest bearing demand    1,353,719                      1,379,230                      1,138,690             deposits Total funding liabilities/cost  $5,662,311          0.60%      $5,540,450          0.58%      $4,913,178          0.58% of funds Net interest income/net                    $64,966 4.05%                  $66,876 4.22%                  $59,716 4.26% interest spread Net interest                           4.29%                           4.45%                           4.49% margin Net interest margin, excluding                                                                                     effect of nonaccrual loan                       4.30%                           4.47%                           4.47% income (expense) Net interest margin, excluding                                                                                     effect of nonaccrual loan income (expense)                       4.26%                           4.44%                           4.46% and prepayment fee income                                                                                                      Nonaccrual loan income (reversed)             $(197)                        $(280)                        $236     recognized Prepayment fee                309                            537                            63        income received Net                          $112                          $257                          $299                                                                                                          Cost of deposits:                                                                                     Noninterest bearing demand    $1,353,719 $--              $1,379,230 $--              $1,138,690 $--     deposits Interest bearing 3,834,874   6,690    0.71%      3,684,448   6,307    0.68%      3,309,280   5,409    0.66% deposits Total deposits    $5,188,593 $6,690  0.52%      $5,063,678 $6,307  0.50%      $4,447,970 $5,409  0.49%                                                                                                     .                                                                                       Three Months Ended                    3/31/2014    12/31/2013   % change   3/31/2013    % change AVERAGE BALANCES                                                   Gross loans, includes loans held $5,183,801 $4,999,586 4%         $4,444,313 17% for sale Investments         958,038     961,156     0%         949,510     1% Interest earning    6,141,839   5,960,742   3%         5,393,830   14% assets Total assets        6,525,548   6,393,648   2%         5,727,738   14%                                                                   Interest bearing    3,834,874   3,684,448   4%         3,309,280   16% deposits Interest bearing    4,308,592   4,161,220   4%         3,774,488   14% liabilities Noninterest bearing 1,353,719   1,379,230   -2%        1,138,690   19% demand deposits Stockholders'       819,344     810,563     1%         765,230     7% equity Net interest        1,833,247   1,799,522   2%         1,619,342   13% earning assets                                                                                      3/31/2014    12/31/2013   % change   3/31/2013    % change LOAN PORTFOLIO                                                     COMPOSITION: Commercial loans    $1,058,665 $1,073,778 -1%        $1,078,253 -2% Real estate loans   4,034,998   3,904,059   3%         3,374,732   20% Consumer and other  98,895      98,507      0%         48,881      102% loans Loans outstanding  5,192,558   5,076,344   2%         4,501,866   15% Unamortized deferred loan fees  (1,763)     (2,168)     -19%       (1,820)     -3% - net of costs Loans, net of deferred loan fees  5,190,795   5,074,176   2%         4,500,046   15% and costs Allowance for loan  (65,699)    (67,320)    -2%        (73,268)    -10% losses Loan receivable,   $5,125,096 $5,006,856 2%         $4,426,778 16% net                                                                   REAL ESTATE LOANS   3/31/2014    12/31/2013   % change   3/31/2013    % change BY PROPERTY TYPE: Retail buildings    $1,166,573 $1,140,103 2%         $914,809   28% Hotels/motels       734,141     720,175     2%         642,470     14% Gas stations/car    534,078     522,198     2%         483,151     11% washes Mixed-use           331,571     312,156     6%         303,286     9% facilities Warehouses          415,635     383,979     8%         356,724     17% Multifamily         193,503     181,503     7%         147,383     31% Other               659,497     643,945     2%         526,909     25% Total               $4,034,998 $3,904,059 3%         $3,374,732 20%                                                                   DEPOSIT COMPOSITION 3/31/2014    12/31/2013   % change   3/31/2013    % change Noninterest bearing demand      $1,442,348 $1,399,454 3%         $1,182,509 22% deposits Money market and   1,391,541   1,376,068   1%         1,269,388   10% other Saving deposits    210,973     222,446     -5%        192,208     10% Time deposits of   1,589,751   1,499,248   6%         1,237,366   28% $100,000 or more Other time         699,947     650,841     8%         674,203     4% deposits Total deposit      $5,334,560 $5,148,057 4%         $4,555,674 17% balances                                                                   DEPOSIT COMPOSITION 3/31/2014    12/31/2013   3/31/2013               (%) Noninterest bearing demand      27.1%        27.2%        26.0%                   deposits Money market and   26.1%        26.7%        27.9%                   other Saving deposits    4.0%         4.3%         4.2%                    Time deposits of   29.8%        29.1%        27.2%                   $100,000 or more Other time         13.1%        12.6%        14.8%                   deposits Total deposit      100.0%       100.0%       100.0%                  balances                                                                                                                                     CAPITAL RATIOS      3/31/2014    12/31/2013   3/31/2013               Total stockholders'       $832,159   $809,374   $772,275              equity Tier 1 risk-based  13.46%       13.66%       14.63%                  capital ratio Total risk-based   14.70%       14.90%       15.88%                  capital ratio Tier 1 leverage    11.79%       11.97%       12.64%                  ratio Book value per     $10.46     $10.18     $9.79                 common share Tangible common    $9.08      $8.79      $8.57                 equity per share^3 Tangible common equity to tangible  11.00%       10.97%       11.77%                  assets^3   ^3 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 goodwilland 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 marketparticipant interest in tangible common equity as a measure of capital.   Reonciliation of GAAP financial measures to non-GAAP financial measures:                                                                                       3/31/2014    12/31/2013   3/31/2013              Total stockholders'  $832,159   $809,374   $772,275             equity Less: Common stock   (378)       (378)       (378)                 warrant Goodwill and other intangible assets,   (110,260)   (110,585)   (96,805)              net Tangible common      $721,521   $698,411   $675,092             equity                                                                   Total assets         $6,667,551 $6,475,199 $5,833,597           Less: Goodwill and other intangible     (110,260)   (110,585)   (96,805)              assets, net Tangible assets      $6,557,291 $6,364,614 $5,736,792                                                                             Common shares        79,488,899  79,441,525  78,812,140            outstanding                                                                   Tangible common equity to tangible   11.00%       10.97%       11.77%                 assets Tangible common     $9.08      $8.79      $8.57                equity per share                                                                                                                                                         Three Months Ended ALLOWANCE FOR LOAN   3/31/2014    12/31/2013   9/30/2013    6/30/2013 3/31/2013 LOSSES: Balance at beginning $67,320    $65,715    $71,675    $73,268 $66,941 of period Provision for loan   3,026       10,950      744         800      7,506 losses Recoveries           616         605         1,086       507      250 Charge offs         (5,263)     (9,950)     (7,790)     (2,900)  (1,429) Balance at end of    $65,699    $67,320    $65,715    $71,675 $73,268 period Net charge offs/average gross   0.36%        0.75%        0.56%        0.21%     0.11% loans (annualized)                                                                                       Three Months Ended NET CHARGED OFF      3/31/2014    12/31/2013   9/30/2013    6/30/2013 3/31/2013 LOANSBY TYPE                                                                   Real estate loans    $154       $288       $6,129     $744    $1,014 Commercial loans     4,414       9,139       119         1,684    150 Consumer loans       79          (82)        (44)        (35)     15 Charge offs excluding Acquired   4,647       9,345       6,204       2,393    1,179 Credit Impaired Loans Charge offs on Acquired Credit      --         --         500         --      -- Impaired Loans Total net charge    $4,647     $9,345     $6,704     $2,393  $1,179 offs                                                                                                                                                                                                       NONPERFORMING ASSETS 3/31/2014    12/31/2013   9/30/2013    6/30/2013 3/31/2013 Delinquent loans 90 days or more on      $47,314    $39,154    $36,129    $44,987 $42,269 nonaccrual status^4 Delinquent loans 90 days or more on      --         5           948         252      -- accrual status^5 Accruing             37,527      33,903      36,018      36,225   32,249 restructured loans Total nonperforming  84,841      73,062      73,095      81,464   74,518 loans Other real estate    20,001      24,288      27,582      9,596    8,419 owned Total nonperforming  $104,842   $97,350    $100,677   $91,060 $82,937 assets Nonperforming        1.57%        1.50%        1.59%        1.55%     1.42% assets/total assets Nonperforming assets/loans         2.01%        1.91%        2.04%        2.01%     1.84% receivable & OREO Nonperforming        12.60%       12.03%       12.57%       11.66%    10.74% assets/total capital Nonperforming loans/loans          1.63%        1.44%        1.49%        1.80%     1.66% receivable Nonaccrual loans/loans          0.91%        0.77%        0.74%        1.00%     0.94% receivable Allowance for loan losses/loans         1.27%        1.33%        1.34%        1.59%     1.63% receivable Allowance for loan losses/nonaccrual    138.86%      171.94%      181.89%      159.32%   173.34% loans Allowance for loan losses/nonperforming loans (excludes      77.44%       92.14%       89.90%       87.98%    98.32% delinquent loans 90 days or more on accrual status) Allowance for loan losses/nonperforming 62.66%       69.15%       65.27%       78.71%    88.34% assets   ^4 Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $31.2 million, $27.5 million, $25.2 million, $21.0 million and $18.6 million at March 31, 2014, December 31, 2013,September 30, 2013, June 30, 2013 and March 31, 2013, respectively. ^5 Excludes Acquired Credit Impaired Loans totaling $46.0 million, $43.8 million, $38.6 million, $18.5 million and $21.6 million at March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013and March 31, 2013, respectively.   BREAKDOWN OF ACCRUING RESTRUCTURED LOANS BY   3/31/2014  12/31/2013 9/30/2013  6/30/2013  3/31/2013 TYPE: Retail buildings        $5,542   $5,576   $6,777   $6,812   $2,556 Hotels/motels           8,401     8,477     8,550     8,623     8,701 Gas stations/car washes --       --       --       --       -- Mixed-use facilities    796       802       807       811       816 Warehouses              812       482       485       489       492 Multifamily             --       --       --       --       3,247 Other^6                 21,976    18,567    19,399    19,490    16,437 Total                   $37,527  $33,904  $36,018  $36,225  $32,249                                                                 ^6 Includes commercial business and other                                               loans                                                                 DELINQUENT LOANS LESS   3/31/2014  12/31/2013 9/30/2013  6/30/2013  3/31/2013 THAN 90 DAYS PAST DUE                                                                 Legacy                                                           30 - 59 days            $1,700   $2,209   $1,705   $2,056   $1,174 60 - 89 days            445       266       732       85        2,411 Total delinquent loans less than 90 days past  $2,145   $2,475   $2,437   $2,141   $3,585 due - legacy                                                                 Acquired                                                         30 - 59 days            $4,916   $5,113   $4,013   $1,768   $10,878 60 - 89 days            3         2,506     1,663     2,121     258 Total delinquent loans less than 90 days past  $4,919   $7,619   $5,676   $3,889   $11,136 due - acquired                                                                 Total delinquent loans less than 90 days past  $7,064   $10,094  $32,107  $16,305  $29,985 due                                                                 DELINQUENT LOANS LESS THAN 90 DAYS PAST DUE   3/31/2014  12/31/2013 9/30/2013  6/30/2013  3/31/2013 BY TYPE                                                                 Legacy                                                           Real estate loans       $760     $1,375   $1,664   $853     $2,870 Commercial loans        1,338     1,024     744       1,267     692 Consumer loans          47        76        29        21        23 Total delinquent loans less than 90 days past  $2,145   $2,475   $2,437   $2,141   $3,585 due - legacy                                                                 Acquired                                                         Real estate loans       $4,036   $6,034   $4,616   $2,695   $9,287 Commercial loans        598       1,228     833       1,167     1,448 Consumer loans          285       357       227       27        401 Total delinquent loans less than 90 days past  $4,919   $7,619   $5,676   $3,889   $11,136 due - acquired                                                                 Total delinquent loans less than 90 days past  $7,064   $10,094  $32,107  $16,305  $29,985 due                                                                                                                                 NONACCRUAL LOANSBY     3/31/2014  12/31/2013 9/30/2013  6/30/2013  3/31/2013 TYPE                                                                 Real estate loans       $34,070  $28,083  $26,616  $34,577  $33,751 Commercial loans        12,216    10,141    8,743     9,629     7,591 Consumer loans          1,028     930       770       781       927 Total non-accrual      $47,314  $39,154  $36,129  $44,987  $42,269 loans                                                                 CRITICIZED LOANS       3/31/2014  12/31/2013 9/30/2013  6/30/2013  3/31/2013 Legacy                                                           Special mention         $52,159  $46,480  $61,804  $66,774  $59,681 Substandard             111,529   120,163   100,551   97,692    94,303 Doubtful                3,332     359       8         152       455 Loss                    --       --       --       --       22 Total criticized loans $167,020 $167,002 $162,363 $164,618 $154,461 - legacy                                                                 Acquired                                                         Special mention         $41,395  $43,009  $49,827  $42,014  $52,722 Substandard             134,660   138,337   143,149   121,758   133,398 Doubtful                2,376     6,100     2,045     368       327 Loss                    1,445     1,402     990       707       849 Total criticized loans $179,876 $188,848 $196,011 $164,847 $187,296 - acquired                                                                 Total criticized loans $346,896 $355,850 $358,374 $329,465 $341,757                                                                  CONTACT: Angie Yang          SVP, Investor Relations          213-251-2219          angie.yang@BBCNbank.com  BBCN Bancorp, Inc. 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