Questions? +1 (202) 540-8337 Login
Trusted News Since 1995
A service for global professionals · Monday, June 18, 2018 · 452,066,572 Articles · 3+ Million Readers

BBCN Bancorp Reports Financial Results for 2016 First Quarter

/EIN News/ -- Q1 2016 Summary:

  • Net income totals $23.6 million, or $0.30 per diluted common share
  • New loan originations amount to $333.5 million
  • Loans receivable increase 2% to $6.37 billion, or 12% year-over-year
  • Total deposits increase 2% to $6.47 billion, or 11% year-over-year
  • Total assets increase 2% to $8.07 billion, or 11% year-over-year

LOS ANGELES, April 18, 2016 (GLOBE NEWSWIRE) -- BBCN Bancorp, Inc. (the “Company”) (NASDAQ:BBCN), the holding company of BBCN Bank (the “Bank”), today reported net income of $23.6 million, or $0.30 per diluted common share, for the three months ended March 31, 2016.  This compares with net income of $22.9 million, or $0.29 per diluted common share, for the preceding 2015 fourth quarter and $21.4 million, or $0.27 per diluted common share, for the year-ago first quarter.

“BBCN’s 2016 first quarter results reflect another quarter of solid operational performance,” said Kevin S. Kim, Chairman and Chief Executive Officer of BBCN Bancorp, Inc.  “While new loan originations are down from the seasonally higher and record fourth quarter, we are pleased with the improved mix of new loans with increased contributions of commercial and consumer loans.  We are also seeing stability in the average yield on new loans, which was up 5 basis points linked quarter, and our core net interest margin is holding relatively steady, increasing 1 basis point over the preceding fourth quarter.  Notwithstanding lower gains on sales of SBA loans in the first quarter and merger-related expenses, we continued to demonstrate the stability and strength of our earnings platform with net income increasing to $23.6 million for the three months ended March 31, 2016.

“Considering BBCN’s consistent financial performance, our ongoing progress in becoming a more diversified financial institution and the pending combination with the second strongest commercial lender in our space, we remain optimistic about the prospects of our organization and believe we are well positioned to deliver improved value to our customers, employees and shareholders,” said Kim.

Financial Highlights

(dollars in thousands, except per share data) At or for the Three Months Ended
  3/31/2016   12/31/2015   3/31/2015
Net income $ 23,623     $ 22,869     $ 21,358  
Diluted earnings per share $ 0.30     $ 0.29     $ 0.27  
Net interest income before provision for loan losses $ 71,607     $ 71,768     $ 65,123  
Net interest margin   3.84 %     3.88 %     3.87 %
Noninterest income $ 8,775     $ 10,977     $ 11,048  
Noninterest expense $ 40,049     $ 38,938     $ 39,077  
Net loans receivable $ 6,295,079     $ 6,171,933     $ 5,641,045  
Deposits $ 6,467,411     $ 6,340,976     $ 5,803,254  
Nonaccrual loans (1) $ 43,548     $ 40,801     $ 38,755  
ALLL to loans receivable   1.21 %     1.22 %     1.22 %
ALLL to nonaccrual loans (1)   176.49 %     187.27 %     179.57 %
ALLL to nonperforming assets (1) (2)   66.17 %     69.34 %     59.86 %
Provision for loan losses $ 500     $ 4,900     $ 1,500  
Net charge offs (recoveries) $ 52     $ (398 )   $ (336 )
ROA   1.20 %     1.19 %     1.19 %
ROE   9.99 %     9.76 %     9.60 %
Efficiency ratio   49.82 %     47.06 %     51.30 %

(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $15.4 million, $18.7 million and $26.0 million at March 31, 2016, December 31, 2015, and March 31, 2015, respectively.
(2) Nonperforming assets exclude acquired credit impaired loans totaling $13.1 million, $12.2 million and $24.1 million at March 31, 2016, December 31, 2015, and March 31, 2015, respectively.

Operating Results for the 2016 First Quarter

The comparability of BBCN’s operating results with past performance is impacted by acquisition accounting adjustments related to past acquisitions.  The Company provides the following supplemental information to facilitate a better understanding of financial performance.  Net interest income for the three months ended March 31, 2016, December 31, 2015, and March 31, 2015 include the following pre-tax acquisition accounting adjustments related to past acquisitions:

(dollars in thousands) Three Months Ended
  3/31/2016   12/31/2015   3/31/2015
Accretion of discount on acquired performing loans $ 1,966     $ 2,648     $ 2,183  
Accretion of discount on acquired credit impaired loans   1,965       2,206       1,555  
Amortization of premium on acquired FHLB borrowings   97       97       94  
Accretion of discount on acquired subordinated debt   (44 )     (44 )     (41 )
Amortization of premium on acquired time deposits   24       28       75  
  Total $ 4,008     $ 4,935     $ 3,866  
                       

Net Interest Income and Net Interest Margin.  Net interest income before provision for loan losses for the 2016 first quarter totaled $71.6 million, down slightly from $71.8 million in the preceding 2015 fourth quarter, reflecting a 15% reduction in acquisition accounting adjustments versus the preceding 2015 fourth quarter and a 2 basis point decline in yields on interest earning assets, which more than offset the higher interest income earned on the Company’s steadily growing base of loans receivable.  Compared with the prior-year period, net interest income before provision for loan losses rose 10% over $65.1 million in the 2015 first quarter, benefiting from a 12% increase in average loans receivable and a 35% increase in securities available for sale.

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
  3/31/2016   12/31/2015   change   3/31/2015   change
Net interest margin, excluding the effect of acquisition accounting adjustments 3.60 %   3.59 %   0.01 %   3.61 %   (0.01 )%
Acquisition accounting adjustments 0.24     0.29     (0.05 )   0.26     (0.02 )
Net interest margin 3.84 %   3.88 %   (0.04 )%   3.87 %   (0.03 )%
                             

The net interest margin for the 2016 first quarter was 3.84%, down 4 basis points from the preceding fourth quarter and down 3 basis points from the year-ago first quarter.  On a core basis, excluding the effect of acquisition accounting adjustments, the net interest margin for the 2016 first quarter was relatively stable, up 1 basis point from the preceding fourth quarter and down 1 basis point from the year-ago first quarter.

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

  Three Months Ended
  3/31/2016   12/31/2015   change   3/31/2015   change
Weighted average yield on loans, excluding the effect of acquisition accounting adjustments 4.66 %   4.64 %   0.02 %   4.71 %   (0.05 )%
Acquisition accounting adjustments 0.29     0.35     (0.06 )   0.32     (0.05 )
Weighted average yield on loans 4.95 %   4.99 %   (0.04 )%   5.03 %   (0.10 )%
                             

The weighted average yield on loans for the 2016 first quarter declined 4 basis points from the preceding 2015 fourth quarter, but increased 2 basis points when excluding the effect of acquisition accounting adjustments.  Compared with the prior-year period, the weighted average yield on loans decreased 10 basis points, or 5 basis points on a core basis excluding the effect of acquisition accounting adjustments.

The weighted average yield on new loans originated during the 2016 first quarter was 4.29%, up 5 basis points from 4.24% in the preceding fourth quarter and up 22 basis points from 4.07% in the year-ago first quarter.

The weighted average cost of deposits for the 2016 first quarter increased 3 basis points from the preceding fourth quarter and 8 basis points from the year-ago first quarter.  The Company noted that there was virtually no impact on the weighted average cost of deposits noted above from the effect of premium amortization on time deposits assumed in acquisitions.

Noninterest Income Noninterest income for the 2016 first quarter totaled $8.8 million, down from $11.0 million in both the preceding 2015 fourth quarter and 2015 first quarter.  Aside from the normal range of fluctuations in service fees on deposit accounts and other income and fees, the Company posted lower-than-recent levels of gains on sales of SBA loans of $1.8 million in the 2016 quarter, versus $3.1 million and $3.0 million in the 2015 fourth and first quarters, respectively.  Additional details relating to quarterly sales of SBA loans is provided in the balance sheet summary discussion below.

Noninterest Expense.  The Company continued to manage its operations efficiently notwithstanding the additional merger related expenses associated with its pending combination with Wilshire Bancorp, Inc. Total noninterest expense for the 2016 first quarter, 2015 fourth quarter and 2015 first quarter totaled $40.0 million, $38.9 million and $39.1 million, respectively, including merger related expenses of $1.2 million, $1.4 million and $52,000. Salaries and employee benefits expense totaled $21.6 million for the 2016 first quarter, compared with $21.3 million for the preceding fourth quarter and $21.2 million for the year-ago first quarter. The total number of FTEs as of March 31, 2016 was 945, compared with 938 as of December 31, 2015 and 933 as of March 31, 2015.

Income Tax Provision.  The effective tax rate for the 2016 first quarter was 40.7%, compared with 41.2% for the preceding 2015 fourth quarter and 40.0% for the 2015 first quarter.

Balance Sheet Summary

Loans receivable totaled $6.37 billion at March 31, 2016, reflecting a 2% increase over $6.25 billion at December 31, 2015, and a 12% increase over $5.71 billion at March 31, 2015.

Total new loan originations during the 2016 first quarter amounted to $333.5 million, including SBA loan originations of $54.3 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, which amounted to $37.6 million for the first quarter of 2016, compared with $39.4 million for the preceding 2015 fourth quarter and $42.9 million for the 2015 first quarter.  During the 2016 first quarter, the Company sold $23.8 million of its SBA loans held for sale, compared with $41.9 million in the preceding fourth quarter and $32.5 million in the year-ago first quarter.

Aggregate pay offs and pay downs for the 2016 first quarter amounted to $201.9 million, compared with $263.0 million for the preceding 2015 fourth quarter and $166.3 million for the year-ago first quarter.

Total deposits increased to $6.47 billion at March 31, 2016, up 2% from $6.34 billion at December 31, 2015,  reflecting increased balances in time deposits.  Noninterest bearing deposits at the close of the 2016 first quarter accounted for 26% of total deposits.  Compared with the year-ago first quarter, total deposits increased 11% from $5.80 million at March 31, 2015, reflecting increased balances in all deposit categories, except savings deposits.

Credit Quality

The provision for loan losses for the 2016 first quarter was $500,000, compared with $4.9 million for the preceding 2015 fourth quarter and $1.5 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, 2016, December 31, 2015, and March 31, 2015 is as follows:

(dollars in thousands) 3/31/2016   12/31/2015   3/31/2015
Legacy Loans (1) $   64,016     $   63,309     $   55,397  
Acquired Loans - Performing (2)     963         1,117         1,550  
Acquired Loans - Credit Impaired (2)     11,877         11,982         12,647  
Total ALLL $   76,856     $   76,408     $   69,594  
                 
Loans Receivable $   6,371,935     $   6,248,341     $   5,710,639  
ALLL coverage ratio     1.21 %       1.22 %       1.22 %

(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, 2016, December 31, 2015, and March 31, 2015:

(dollars in thousands) 3/31/2016   12/31/2015   3/31/2015
Special Mention (1) $ 104,042   $ 104,186   $ 112,298
Classified (1)   203,398     203,576     209,992
  Criticized $ 307,440   $ 307,762   $ 322,290

(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, delinquent loans past due 90 days or more on accrual status (excluding acquired credit impaired loans) and accruing restructured loans.  Nonaccrual loans at March 31, 2016 totaled $43.5 million, or 0.68% of loans receivable.  This compares with nonaccrual loans of $40.8 million, or 0.65% of loans receivable, at December 31, 2015 and $38.8 million, or 0.68% of loans receivable, at March 31, 2015.  Accruing restructured loans amounted to $52.8 million at March 31, 2016, $48.0 million at December 31, 2015 and $57.9 million at March 31, 2015.  Total nonperforming loans at March 31, 2016 amounted to $96.4 million, or 1.51% of loans receivable, compared with $89.2 million, or 1.43% of loans receivable, at December 31, 2015 and $96.7 million, or 1.69% of loans receivable, at March 31, 2015.

Nonperforming assets, including nonperforming loans and other real estate owned, amounted to $116.1 million at March 31, 2016, or 1.44% of total assets, compared with $110.2 million, or 1.39% of total assets, at December 31, 2015, and $116.3 million, or 1.60% of total assets, at March 31, 2015.

For the 2016 first quarter, the Company recorded net charge offs of $52,000, or 0.00% of average loans receivable on an annualized basis.  This compares with net recoveries of $398,000 for the 2015 fourth quarter, or 0.03% of average loans receivable on an annualized basis, and net recoveries of $336,000, or 0.02% of average loans receivable on an annualized basis, for the year-ago first quarter.

The allowance for loan losses at March 31, 2016 was $76.9 million, or 1.21% of loans receivable (excluding loans held for sale), compared with $76.4 million, or 1.22%, at December 31, 2015 and $69.6 million, or 1.22%, at March 31, 2015.   The coverage ratio of the allowance for loan losses to nonperforming loans (excluding acquired credit impaired loans) was 79.77% at March 31, 2016, versus 85.70% at December 31, 2015 and 72.00% at March 31, 2015.

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 $140.4 million at March 31, 2016, compared with $138.1 million at December 31, 2015 and $122.7 million at March 31, 2015.

Capital

At March 31, 2016, the Company continued to exceed all regulatory capital requirements to be classified as a “well-capitalized” institution, as summarized in the following table.

  3/31/2016   12/31/2015   3/31/2015
Common Equity Tier 1 Capital   11.95 %     12.08 %     12.73 %
Leverage Ratio   11.44 %     11.53 %     11.76 %
Tier 1 Risk-based Ratio   12.53 %     12.67 %     13.39 %
Total Risk-based Ratio   13.63 %     13.80 %     14.53 %
                       

Tangible common equity per share and as a percentage of tangible assets are summarized in the following table:

  3/31/2016   12/31/2015   3/31/2015
Tangible common equity per share (1) $ 10.73     $ 10.43     $ 9.93  
Tangible common equity to tangible assets (1)   10.73 %     10.63 %     11.03 %

(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 19, 2016 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for the 2016 first quarter.  Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international), and asking for the “BBCN Bancorp Call.”  Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of BBCN Bancorp’s website at www.BBCNbank.com.  After the live webcast, a replay will remain available in the Investor Relations section of BBCN Bancorp’s website for one year.  A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) through April 26, 2016, passcode 10083449.

About BBCN Bancorp, Inc.

BBCN Bancorp, Inc. is the holding company of BBCN Bank, the largest Korean-American bank in the nation with $8.1 billion in assets as of March 31, 2016. Headquartered in Los Angeles and serving a diverse mix of customers mirroring its communities, BBCN operates 50 branches in California, New York, New Jersey, Illinois, Washington and Virginia; eight loan production offices in Seattle, Denver, Dallas, Atlanta, Northern California, Annandale, Virginia, Portland, Oregon and Fremont, California; and a representative office in Seoul, Korea.  BBCN specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and business lending, SBA lending and international trade financing. BBCN Bank is a California-chartered bank and its deposits are insured by the FDIC to the extent provided by law. BBCN is an Equal Opportunity Lender.

Additional Information and Where to Find It

In connection with the proposed merger, BBCN Bancorp, Inc. has filed with the Securities and Exchange Commission (“SEC”) a registration statement on Form S-4 that includes a preliminary joint proxy statement/prospectus of BBCN Bancorp, Inc. and Wilshire Bancorp, Inc., as well as other relevant documents concerning the proposed transaction. Shareholders are urged to read the registration statement, the preliminary joint proxy statement/prospectus regarding the merger, the definitive joint proxy statement/prospectus when it becomes available and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they will contain important information. You will be able to obtain a free copy of the preliminary joint proxy statement/prospectus, as well as other filings containing information about BBCN Bancorp and Wilshire Bancorp at the SEC’s Internet site (www.sec.gov). You will also be able to obtain these documents, free of charge, from BBCN at www.BBCNbank.com in the “Investor Relations” section under the “About” tab, or from Wilshire Bancorp at www.wilshirebank.com in the “Investor Relations” section under the “About Wilshire Bank” tab.

Participants in Solicitation

BBCN Bancorp, Wilshire Bancorp and their respective directors, executive officers, management and employees may be deemed to be participants in the solicitation of proxies in respect of the merger. Information concerning BBCN Bancorp’s participants is set forth in the proxy statement, dated May 1, 2015, and supplemental proxy materials, dated May 20, 2015, for BBCN Bancorp’s 2015 annual meeting of stockholders, as filed with the SEC on Schedules 14A. Information concerning Wilshire Bancorp’s participants is set forth in the proxy statement, dated April 9, 2015, for Wilshire Bancorp’s 2015 annual meeting of stockholders as filed with the SEC on Schedule 14A. Additional information regarding the interests of participants of BBCN Bancorp and Wilshire Bancorp in the solicitation of proxies in respect of the merger are included in the registration statement and preliminary joint proxy statement/prospectus filed with the SEC.

Forward-Looking Statements

This press release may contain forward-looking statements, including statements about future operations and projected financial results that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward looking statements. These risks and uncertainties include but are not limited to economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services, and pricing. Readers should carefully review the risk factors and the information that could materially affect the Company’s financial results and business, described in documents the Company files from time to time with the Securities and Exchange Commission, including its quarterly reports on Form 10-Q and Annual Reports on Form 10-K, and particularly the discussions of business considerations and certain factors that may affect results of operations and stock price set forth therein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements.

(tables follow)

 
BBCN Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
                   
Assets 3/31/2016   12/31/2015   % change   3/31/2015   % change
Cash and due from banks* $ 236,101     $ 298,389     (21 )%   $ 429,871     (45 )%
Securities available for sale, at fair value 1,087,897     1,010,556     8 %   808,372     35 %
Federal Home Loan Bank, Federal Reserve Bank stock and other investments* 68,329     66,859     2 %   32,673     109 %
Loans held for sale, at the lower of cost or fair value 13,843     8,273     67 %   26,432     (48 )%
Loans receivable 6,371,935     6,248,341     2 %   5,710,639     12 %
Allowance for loan losses (76,856 )   (76,408 )   (1 )%   (69,594 )   (10 )%
  Net loans receivable 6,295,079     6,171,933     2 %   5,641,045     12 %
Accrued interest receivable 15,660     15,195     3 %   13,904     13 %
Premises and equipment, net 35,134     34,575     2 %   30,074     17 %
Bank owned life insurance 47,292     47,018     1 %   46,196     2 %
Goodwill 105,401     105,401     %   105,401     %
Servicing assets 11,856     12,000     (1 )%   10,529     13 %
Other intangible assets, net 2,607     2,820     (8 )%   3,620     (28 )%
Other assets 149,106     139,629     7 %   119,788     24 %
  Total assets $ 8,068,305     $ 7,912,648     2 %   $ 7,267,905     11 %
                   
Liabilities                  
Deposits $ 6,467,411     $ 6,340,976     2 %   $ 5,803,254     11 %
Borrowings from Federal Home Loan Bank 530,495     530,591     %   480,881     10 %
Subordinated debentures 42,371     42,327     %   42,199     %
Accrued interest payable 6,746     6,007     12 %   6,477     4 %
Other liabilities 59,300     54,652     9 %   35,896     65 %
  Total liabilities 7,106,323     6,974,553     2 %   6,368,707     12 %
                   
Stockholders’ Equity                  
Common stock, $0.001 par value; authorized, 150,000,000 shares at March 31, 2016, December 31, 2015, and March 31, 2015; issued and outstanding, 79,597,106, 79,566,356, and 79,542,321 shares at March 31, 2016, December 31, 2015, and March 31, 2015, respectively 80     80     %   79     1 %
Capital surplus 541,625     541,596     %   541,824     %
Retained earnings 413,122     398,251     4 %   352,807     17 %
Accumulated other comprehensive income (loss), net 7,155     (1,832 )   491 %   4,488     59 %
  Total stockholders’ equity 961,982     938,095     3 %   899,198     7 %
  Total liabilities and stockholders’ equity $ 8,068,305     $ 7,912,648     2 %   $ 7,267,905     11 %
                   


BBCN Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
 
  Three Months Ended
  3/31/2016   12/31/2015   % change   3/31/2015   % change
Interest income:                  
  Interest and fees on loans $ 77,118     $ 76,807     %   $ 69,639     11 %
  Interest on securities 5,677     5,544     2 %   4,207     35 %
  Interest on federal funds sold and other investments 666     622     7 %   708     (6 )%
  Total interest income 83,461     82,973     1 %   74,554     12 %
                                   
Interest expense:                                  
  Interest on deposits 9,907     9,297     7 %   7,754     28 %
  Interest on other borrowings 1,947     1,908     2 %   1,677     16 %
  Total interest expense 11,854     11,205     6 %   9,431     26 %
                                   
Net interest income before provision for loan losses 71,607     71,768     %   65,123     10 %
Provision for loan losses 500     4,900     (90 )%   1,500     (67 )%
Net interest income after provision for loan losses 71,107     66,868     6 %   63,623     12 %
                                   
Noninterest income:                                  
  Service fees on deposit accounts 2,683     2,944     (9 )%   3,062     (12 )%
  Net gains on sales of SBA loans 1,825     3,112     (41 )%   3,044     (40 )%
  Net gains on sales of other loans     17     (100 )%   182     (100 )%
  Net gains on sales of securities available for sale         %   424     (100 )%
  Other income and fees 4,267     4,904     (13 )%   4,336     (2 )%
  Total noninterest income 8,775     10,977     (20 )%   11,048     (21 )%
                                   
Noninterest expense:                                  
  Salaries and employee benefits 21,569     21,329     1 %   21,181     2 %
  Occupancy 4,817     4,949     (3 )%   4,692     3 %
  Furniture and equipment 2,287     2,330     (2 )%   2,263     1 %
  Advertising and marketing 1,136     906     25 %   1,391     (18 )%
  Data processing and communications 2,171     2,175     %   2,349     (8 )%
  Professional fees 1,083     1,618     (33 )%   1,424     (24 )%
  FDIC assessment 1,038     1,040     %   1,112     (7 )%
  Credit related expenses 421     324     30 %   855     (51 )%
  OREO (income) expense 1,428     (154 )   1,027 %   1,177     21 %
  Merger related expenses 1,207     1,438     (16 )%   52     2,221 %
  Other 2,892     2,983     (3 )%   2,581     12 %
  Total noninterest expense 40,049     38,938     3 %   39,077     2 %
Income before income taxes 39,833     38,907     2 %   35,594     12 %
Income tax provision 16,210     16,038     1 %   14,236     14 %
Net income $ 23,623     $ 22,869     3 %   $ 21,358     11 %
                   
Earnings Per Common Share:                  
  Basic $ 0.30     $ 0.29         $ 0.27      
  Diluted $ 0.30     $ 0.29         $ 0.27      
                   
Average Shares Outstanding:                  
  Basic 79,583,188     79,556,859         79,526,218      
  Diluted 79,609,317     79,601,452         79,602,122      
                         


BBCN Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
 
  At or for the Three Months Ended
  (Annualized)
Profitability measures: 3/31/2016   12/31/2015   3/31/2015
  ROA 1.20 %   1.19 %   1.19 %
  ROE 9.99 %   9.76 %   9.60 %
  Return on average tangible equity 1 11.28 %   11.03 %   10.94 %
  Net interest margin 3.84 %   3.88 %   3.87 %
  Efficiency ratio 49.82 %   47.06 %   51.30 %
           
Average tangible equity is calculated by subtracting average goodwill and average core deposit intangible assets from average stockholders’ equity. This is a non-GAAP measure that we believe provides investors with information that is useful in understanding our financial performance and position.
 


BBCN Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
 
  Three Months Ended   Three Months Ended   Three Months Ended
  3/31/2016   12/31/2015   3/31/2015
      Interest   Annualized       Interest   Annualized       Interest    Annualized
  Average   Income/   Average   Average   Income/   Average   Average   Income/    Average
  Balance   Expense   Yield/Cost   Balance   Expense   Yield/Cost   Balance   Expense    Yield/Cost
INTEREST EARNING ASSETS:                                  
  Loans receivable, including loans held for sale $ 6,269,428     $ 77,118     4.95 %   $ 6,102,693     $ 76,807     4.99 %   $ 5,617,929     $ 69,639     5.03 %
  Securities available for sale 1,016,865     5,677     2.23 %   1,010,247     5,544     2.20 %   778,305     4,207     2.16 %
  FRB and FHLB stock and other investments 217,048     666     1.21 %   225,529     622     1.08 %   414,973     708     0.68 %
Total interest earning assets $ 7,503,341     $ 83,461     4.47 %   $ 7,338,469     $ 82,973     4.49 %   $ 6,811,207     $ 74,554     4.44 %
                                                                 
INTEREST BEARING LIABILITIES:                                                                
  Deposits:                                                                
  Demand, interest bearing $ 1,968,637     $ 4,004     0.82 %   $ 1,855,772     $ 3,651     0.78 %   $ 1,625,641     $ 2,765     0.68 %
  Savings 186,462     366     0.79 %   189,271     410     0.86 %   195,063     425     0.88 %
  Time deposits:                                                                
  $100,000 or more 1,806,609     4,057     0.90 %   1,752,429     3,764     0.85 %   1,713,331     3,377     0.80 %
  Other 699,431     1,481     0.85 %   704,040     1,472     0.83 %   626,197     1,187     0.77 %
  Total time deposits 2,506,040     5,537     0.89 %   2,456,469     5,236     0.85 %   2,339,528     4,564     0.79 %
  Total interest bearing deposits 4,661,139     9,907     0.85 %   4,501,512     9,297     0.82 %   4,160,232     7,754     0.76 %
  FHLB advances 532,206     1,523     1.15 %   515,981     1,507     1.16 %   480,942     1,297     1.09 %
  Other borrowings 40,813     424     4.11 %   40,764     401     3.85 %   40,624     380     3.74 %
Total interest bearing liabilities 5,234,158     $ 11,854     0.91 %   5,058,257     $ 11,205     0.88 %   4,681,798     $ 9,431     0.82 %
Noninterest bearing demand deposits 1,629,565               1,645,237               1,543,144            
Total funding liabilities/cost of funds $ 6,863,723         0.69 %   $ 6,703,494         0.66 %   $ 6,224,942         0.61 %
Net interest income/net interest spread     $ 71,607     3.56 %       $ 71,768     3.61 %       $ 65,123     3.62 %
Net interest margin         3.84 %           3.88 %           3.87 %
Net interest margin, excluding effect of nonaccrual loan income (expense)         3.84 %           3.88 %           3.88 %
Net interest margin, excluding effect of nonaccrual loan income (expense) and prepayment fee income         3.81 %           3.83 %           3.85 %
Nonaccrual loan income (reversed) recognized     $ (123 )           $ 71             $ (24 )    
Prepayment fee income received     631             902             510      
  Net     $ 508             $ 973             $ 486      
                                   
Cost of deposits:                                  
  Noninterest bearing demand deposits $ 1,629,565     $         $ 1,645,237     $         $ 1,543,144     $      
  Interest bearing deposits 4,661,139     9,907     0.85 %   4,501,512     9,297     0.82 %   4,160,232     7,754     0.76 %
Total deposits $ 6,290,704     $ 9,907     0.63 %   $ 6,146,749     $ 9,297     0.60 %   $ 5,703,376     $ 7,754     0.55 %


 
BBCN Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
 
   Three Months Ended
AVERAGE BALANCES 3/31/2016   12/31/2015   % change   3/31/2015   % change
Loans receivable, including loans held for sale $ 6,269,428     $ 6,102,693     3 %   $ 5,617,929     12 %
Investments 1,233,913     1,235,776     %   1,193,278     3 %
Interest earning assets 7,503,341     7,338,469     2 %   6,811,207     10 %
Total assets 7,875,990     7,700,716     2 %   7,161,811     10 %
                                   
Interest bearing deposits 4,661,139     4,501,512     4 %   4,160,232     12 %
Interest bearing liabilities 5,234,158     5,058,257     3 %   4,681,798     12 %
Noninterest bearing demand deposits 1,629,565     1,645,237     (1 )%   1,543,144     6 %
Stockholders’ equity 945,634     937,664     1 %   890,206     6 %
Net interest earning assets 2,269,183     2,280,212     %   2,129,409     7 %
                   
                   
LOAN PORTFOLIO COMPOSITION: 3/31/2016   12/31/2015   % change   3/31/2015   % change
Commercial loans $ 1,118,420     $ 1,079,316     4 %   $ 1,072,261     4 %
Real estate loans 5,132,517     5,069,482     1 %   4,554,128     13 %
Consumer and other loans 124,064     102,573     21 %   87,558     42 %
   Loans outstanding 6,375,001     6,251,371     2 %   5,713,947     12 %
Unamortized deferred loan fees - net of costs (3,066 )   (3,030 )   (1 )%   (3,308 )   7 %
  Loans, net of deferred loan fees and costs 6,371,935     6,248,341     2 %   5,710,639     12 %
Allowance for loan losses (76,856 )   (76,408 )   (1 )%   (69,594 )   (10 )%
  Loan receivable, net $ 6,295,079     $ 6,171,933     2 %   $ 5,641,045     12 %
                   
REAL ESTATE LOANS BY PROPERTY TYPE: 3/31/2016   12/31/2015   % change   3/31/2015   % change
Retail buildings $ 1,339,676     $ 1,326,516     1 %   $ 1,215,120     10 %
Hotels/motels 1,079,649     1,061,111     2 %   907,106     19 %
Gas stations/car washes 689,883     667,496     3 %   624,644     10 %
Mixed-use facilities 381,955     369,425     3 %   346,865     10 %
Warehouses 530,353     529,255     %   486,656     9 %
Multifamily 251,780     245,532     3 %   205,383     23 %
Other 859,221     870,147     (1 )%   768,354     12 %
Total $ 5,132,517     $ 5,069,482     1 %   $ 4,554,128     13 %
                   
DEPOSIT COMPOSITION 3/31/2016   12/31/2015   % change   3/31/2015   % change
  Noninterest bearing demand deposits $ 1,695,039     $ 1,694,427     %   $ 1,616,935     5 %
  Money market and other 1,951,561     1,983,250     (2 )%   1,592,151     23 %
  Saving deposits 181,779     187,498     (3 )%   193,839     (6 )%
  Time deposits of $100,000 or more 1,885,842     1,772,984     6 %   1,774,109     6 %
  Other time deposits 753,189     702,817     7 %   626,220     20 %
  Total deposit balances $ 6,467,410     $ 6,340,976     2 %   $ 5,803,254     11 %
                   
DEPOSIT COMPOSITION (%) 3/31/2016   12/31/2015       3/31/2015    
  Noninterest bearing demand deposits 26.2 %   26.7 %       27.9 %    
  Money market and other 30.2 %   31.3 %       27.4 %    
  Saving deposits 2.8 %   3.0 %       3.3 %    
  Time deposits of $100,000 or more 29.2 %   28.0 %       30.6 %    
  Other time deposits 11.6 %   11.0 %       10.8 %    
  Total deposit balances 100.0 %   100.0 %       100.0 %    


 
BBCN Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
 
CAPITAL RATIOS 3/31/2016   12/31/2015   3/31/2015        
  Total stockholders’ equity $ 961,982     $ 938,095     $ 899,198          
  Common Equity Tier 1 ratio 11.95 %   12.08 %   12.73 %        
  Tier 1 risk-based capital ratio 12.53 %   12.67 %   13.39 %        
  Total risk-based capital ratio 13.63 %   13.80 %   14.53 %        
  Tier 1 leverage ratio 11.44 %   11.53 %   11.76 %        
  Total risk weighted assets $ 7,098,332     $ 6,905,154     $ 6,194,595          
  Book value per common share $ 12.09     $ 11.79     $ 11.30          
  Tangible common equity to tangible assets 2 10.73 %   10.63 %   11.03 %        
  Tangible common equity per share 2 $ 10.73     $ 10.43     $ 9.93          
                   
Tangible common equity to tangible assets is a non-GAAP financial measure that represents common equity less goodwill and core deposit intangible assets, net divided by total assets less goodwill and core deposit intangible assets, net.  Management reviews tangible common equity to tangible assets in evaluating the Company’s capital levels and has included this ratio in response to market participant interest in tangible common equity as a measure of capital.
                   
Reconciliation of GAAP financial measures to non-GAAP financial measures:        
  3/31/2016   12/31/2015   3/31/2015        
Total stockholders’ equity $ 961,982     $ 938,095     $ 899,198          
Less:  Common stock warrant         (378 )        
  Goodwill and core deposit intangible assets, net (108,008 )   (108,221 )   (109,021 )        
Tangible common equity $ 853,974     $ 829,874     $ 789,799          
                   
Total assets $ 8,068,305     $ 7,912,648     $ 7,267,905          
Less:  Goodwill and core deposit intangible assets, net (108,008 )   (108,221 )   (109,021 )        
Tangible assets $ 7,960,297     $ 7,804,427     $ 7,158,884          
                   
Common shares outstanding 79,597,106     79,566,356     79,542,321          
                   
  Tangible common equity to tangible assets 10.73 %   10.63 %   11.03 %        
  Tangible common equity per share $ 10.73     $ 10.43     $ 9.93          
                   
   Three Months Ended
ALLOWANCE FOR LOAN LOSSES: 3/31/2016   12/31/2015   9/30/2015   6/30/2015   3/31/2015
Balance at beginning of period $ 76,408     $ 71,110     $ 70,118     $ 69,594     $ 67,758  
Provision for loan losses 500     4,900     600     1,000     1,500  
Recoveries 769     955     2,171     975     1,461  
Charge offs (821 )   (557 )   (1,779 )   (1,451 )   (1,125 )
Balance at end of period $ 76,856     $ 76,408     $ 71,110     $ 70,118     $ 69,594  
Net charge offs/average gross loans (annualized) %   (0.03 )%   (0.03 )%   0.03 %   (0.02 )%
                   
  Three Months Ended
NET CHARGED OFF LOANS  BY TYPE 3/31/2016   12/31/2015   9/30/2015   6/30/2015   3/31/2015
Real estate loans $ (390 )   $ (254 )   $ (505 )   $ 13     $ (460 )
Commercial loans 379     (127 )   (25 )   560     111  
Consumer loans 63     (17 )   138     (97 )   13  
  Charge offs excluding Acquired Credit Impaired Loans 52     (398 )   (392 )   476     (336 )
Charge offs on Acquired Credit Impaired Loans                  
  Total net charge offs $ 52     $ (398 )   $ (392 )   $ 476     $ (336 )


 
BBCN Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
                   
NONPERFORMING ASSETS 3/31/2016   12/31/2015   9/30/2015   6/30/2015   3/31/2015
Delinquent loans on nonaccrual status 3 $ 43,548     $ 40,801     $ 32,446     $ 39,681     $ 38,755  
Delinquent loans 90 days or more on accrual status 4 45     375         333      
Accruing restructured loans 52,760     47,984     54,274     57,393     57,905  
Total nonperforming loans 96,353     89,160     86,720     97,407     96,660  
Other real estate owned 19,794     21,035     21,350     20,187     19,606  
Total nonperforming assets $ 116,147     $ 110,195     $ 108,070     $ 117,594     $ 116,266  
Nonperforming assets/total assets 1.44 %   1.39 %   1.43 %   1.60 %   1.60 %
Nonperforming assets/loans receivable & OREO 1.82 %   1.76 %   1.80 %   2.01 %   2.03 %
Nonperforming assets/total capital 12.07 %   11.75 %   11.63 %   12.94 %   12.93 %
Nonperforming loans/loans receivable 1.51 %   1.43 %   1.45 %   1.67 %   1.69 %
Nonaccrual loans/loans receivable 0.68 %   0.65 %   0.54 %   0.68 %   0.68 %
Allowance for loan losses/loans receivable 1.21 %   1.22 %   1.19 %   1.21 %   1.22 %
Allowance for loan losses/nonaccrual loans 176.49 %   187.27 %   219.16 %   176.70 %   179.57 %
Allowance for loan losses/nonperforming loans 79.77 %   85.70 %   82.00 %   71.98 %   72.00 %
Allowance for loan losses/nonperforming assets 66.17 %   69.34 %   65.80 %   59.63 %   59.86 %
                   
3  Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $15.4 million, $18.7 million, $19.9 million, $22.6 million, and $26.0 million at March 31, 2016, December 31, 2015, September, 30, 2015, June 30, 2015, and March 31, 2015, respectively.
4  Excludes Acquired Credit Impaired Loans totaling $13.1 million, $12.2 million, $18.5 million, $23.0 million, and $24.1 million, at March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, respectively.
                   
BREAKDOWN OF ACCRUING RESTRUCTURED LOANS BY TYPE: 3/31/2016   12/31/2015   9/30/2015   6/30/2015   3/31/2015
Retail buildings $ 4,598     $ 5,593     $ 5,631     $ 5,705     $ 5,956  
Hotels/motels 1,336     1,342     7,632     8,012     8,095  
Gas stations/car washes 840     845              
Mixed-use facilities 1,117     1,124     775     844     784  
Warehouses 5,575     5,635     5,698     5,759     6,180  
Multifamily                  
Other 5 39,294     33,445     34,538     37,073     36,890  
Total $ 52,760     $ 47,984     $ 54,274     $ 57,393     $ 57,905  
                   
Includes commercial business and other loans                  
                   
                   
DELINQUENT LOANS LESS THAN 90 DAYS PAST DUE 3/31/2016   12/31/2015   9/30/2015   6/30/2015   3/31/2015
Legacy                  
30 - 59 days $ 4,488     $ 3,104     $ 4,380     $ 3,457     $ 4,901  
60 - 89 days 1,510     1,678     2,874     1,546     1,565  
  Total delinquent loans less than 90 days past due - legacy $ 5,998     $ 4,782     $ 7,254     $ 5,003     $ 6,466  
                   
Acquired                  
30 - 59 days $ 1,456     $ 3,170     $ 2,382     $ 1,553     $ 1,294  
60 - 89 days 47     39     147     629     66  
  Total delinquent loans less than 90 days past due - acquired $ 1,503     $ 3,209     $ 2,529     $ 2,182     $ 1,360  
                   
  Total delinquent loans less than 90 days past due $ 7,501     $ 7,991     $ 9,783     $ 7,185     $ 7,826  
                   


BBCN Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
                   
DELINQUENT LOANS LESS THAN 90 DAYS PAST DUE BY TYPE 3/31/2016   12/31/2015   9/30/2015   6/30/2015   3/31/2015
                   
Legacy                  
Real estate loans $ 1,624     $ 2,179     $ 2,467     $ 2,240     $ 2,127  
Commercial loans 1,441     1,676     4,737     2,734     4,082  
Consumer loans 2,933     927     50     29     257  
  Total delinquent loans less than 90 days past due - legacy $ 5,998     $ 4,782     $ 7,254     $ 5,003     $ 6,466  
                   
Acquired                  
Real estate loans $ 1,189     $ 2,572     $ 2,335     $ 1,843     $ 1,145  
Commercial loans 314     349     164     333     199  
Consumer loans     288     30     6     16  
  Total delinquent loans less than 90 days past due - acquired $ 1,503     $ 3,209     $ 2,529     $ 2,182     $ 1,360  
                   
  Total delinquent loans less than 90 days past due $ 7,501     $ 7,991     $ 9,783     $ 7,185     $ 7,826  
                   
                   
NONACCRUAL LOANS  BY TYPE 3/31/2016   12/31/2015   9/30/2015   6/30/2015   3/31/2015
                   
Real estate loans $ 26,123     $ 24,375     $ 23,361     $ 25,922     $ 25,126  
Commercial loans 16,842     15,600     7,995     12,031     12,591  
Consumer loans 583     826     1,090     1,728     1,038  
  Total non-accrual loans $ 43,548     $ 40,801     $ 32,446     $ 39,681     $ 38,755  
                   
CRITICIZED LOANS 3/31/2016   12/31/2015   9/30/2015   6/30/2015   3/31/2015
Legacy                  
Special mention $ 87,025     $ 85,945     $ 116,267     $ 102,725     $ 90,041  
Substandard 129,314     126,880     97,225     103,074     111,162  
Doubtful 133     20     184     220     228  
Loss                  
  Total criticized loans - legacy $ 216,472     $ 212,845     $ 213,676     $ 206,019     $ 201,431  
                   
Acquired                  
Special mention $ 17,017     $ 18,241     $ 25,388     $ 27,070     $ 22,257  
Substandard 71,954     74,482     79,774     90,262     96,655  
Doubtful 1,997     2,194     1,537     1,833     1,947  
Loss                  
  Total criticized loans - acquired $ 90,968     $ 94,917     $ 106,699     $ 119,165     $ 120,859  
                   
  Total criticized loans $ 307,440     $ 307,762     $ 320,375     $ 325,184     $ 322,290  

 

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

Primary Logo

Powered by EIN News