x | Quarterly report pursuant to section 13 or 15 (d) of the Securities Exchange Act of 1934 |
o | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Delaware | 95-4849715 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification Number) | |
3731 Wilshire Boulevard, Suite 1000, Los Angeles, California | 90010 | |
(Address of Principal executive offices) | (ZIP Code) |
Large accelerated filer | x | Accelerated filer | o | |
Non-accelerated filer | o | Smaller Reporting Company | o |
Page | ||
Item 1. | ||
Item 2 | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
Certifications |
Item 1. | Financial Statements |
BBCN BANCORP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||
(Unaudited) | |||||||
March 31, 2013 | December 31, 2012 | ||||||
ASSETS | (In thousands, except share data) | ||||||
Cash and cash equivalents: | |||||||
Cash and due from banks | $ | 73,125 | $ | 88,506 | |||
Interest-earning deposit at the Federal Reserve Bank (the "FRB") | 207,688 | 224,410 | |||||
Total cash and cash equivalents | 280,813 | 312,916 | |||||
Securities available for sale, at fair value | 717,441 | 704,403 | |||||
Loans held for sale, at the lower of cost or fair value | 48,941 | 51,635 | |||||
Loans receivable, net of allowance for loan losses (March 31, 2013 - $73,268; December 31, 2012 - $66,941) | 4,426,778 | 4,229,311 | |||||
Other real estate owned ("OREO"), net | 8,419 | 2,698 | |||||
Federal Home Loan Bank ("FHLB") stock, at cost | 24,308 | 22,495 | |||||
Premises and equipment, net of accumulated depreciation and amortization (March 31, 2013 - $23,198; December 31, 2012 - $22,201) | 22,960 | 22,609 | |||||
Accrued interest receivable | 13,271 | 12,117 | |||||
Deferred tax assets, net | 65,298 | 60,240 | |||||
Customers’ liabilities on acceptances | 12,200 | 10,493 | |||||
Bank owned life insurance | 44,079 | 43,767 | |||||
Investments in affordable housing partnerships | 12,641 | 13,164 | |||||
Goodwill | 93,404 | 89,878 | |||||
Other intangible assets, net | 3,401 | 3,033 | |||||
Prepaid FDIC insurance | 7,157 | 7,574 | |||||
FDIC loss share receivable | 4,386 | 5,797 | |||||
Other assets | 48,100 | 48,531 | |||||
Total assets | $ | 5,833,597 | $ | 5,640,661 | |||
(Continued) |
BBCN BANCORP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||
(Unaudited) | |||||||
March 31, 2013 | December 31, 2012 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | (In thousands, except share data) | ||||||
LIABILITIES: | |||||||
Deposits: | |||||||
Non-interest bearing | $ | 1,182,509 | $ | 1,184,285 | |||
Interest bearing: | |||||||
Money market and NOW accounts | 1,269,388 | 1,248,304 | |||||
Savings deposits | 192,208 | 180,686 | |||||
Time deposits of $100,000 or more | 1,237,366 | 1,088,611 | |||||
Other time deposits | 674,203 | 682,149 | |||||
Total deposits | 4,555,674 | 4,384,035 | |||||
FHLB advances | 421,632 | 420,722 | |||||
Subordinated debentures | 45,996 | 41,846 | |||||
Accrued interest payable | 4,325 | 4,355 | |||||
Acceptances outstanding | 12,200 | 10,493 | |||||
Other liabilities | 21,495 | 28,106 | |||||
Total liabilities | 5,061,322 | 4,889,557 | |||||
STOCKHOLDERS’ EQUITY: | |||||||
Common stock, $0.001 par value; authorized 150,000,000 shares at March 31, 2013 and December 31, 2012; issued and outstanding, 78,812,140 and 78,041,511 shares at March 31, 2013 and December 31, 2012, respectively | 79 | 78 | |||||
Additional paid-in capital | 535,091 | 525,354 | |||||
Retained earnings | 230,149 | 216,590 | |||||
Accumulated other comprehensive income, net | 6,956 | 9,082 | |||||
Total stockholders’ equity | 772,275 | 751,104 | |||||
Total liabilities and stockholders’ equity | $ | 5,833,597 | $ | 5,640,661 |
BBCN BANCORP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(In thousands, except share data) | |||||||
INTEREST INCOME: | |||||||
Interest and fees on loans | $ | 63,029 | $ | 63,419 | |||
Interest on securities | 3,427 | 4,909 | |||||
Interest on federal funds sold and other investments | 287 | 227 | |||||
Total interest income | 66,743 | 68,555 | |||||
INTEREST EXPENSE: | |||||||
Interest on deposits | 5,408 | 5,403 | |||||
Interest on FHLB advances | 1,224 | 1,626 | |||||
Interest on other borrowings | 395 | 667 | |||||
Total interest expense | 7,027 | 7,696 | |||||
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES | 59,716 | 60,859 | |||||
PROVISION FOR LOAN LOSSES | 7,506 | 2,600 | |||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 52,210 | 58,259 | |||||
NON-INTEREST INCOME: | |||||||
Service fees on deposit accounts | 2,875 | 3,160 | |||||
International service fees | 1,238 | 1,224 | |||||
Loan servicing fees, net | 969 | 1,337 | |||||
Wire transfer fees | 816 | 741 | |||||
Other income and fees | 1,249 | 1,340 | |||||
Net gains on sales of SBA loans | 2,694 | 2,963 | |||||
Net gains on sales of other loans | 43 | — | |||||
Net gains on sales of securities available for sale | 54 | 816 | |||||
Net valuation gains on interest rate swaps and caps | — | 3 | |||||
Net gains on sales of OREO | 2 | 61 | |||||
Total non-interest income | 9,940 | 11,645 | |||||
NON-INTEREST EXPENSE: | |||||||
Salaries and employee benefits | 16,332 | 14,079 | |||||
Occupancy | 4,011 | 3,646 | |||||
Furniture and equipment | 1,573 | 1,218 | |||||
Advertising and marketing | 1,273 | 1,458 | |||||
Data processing and communications | 1,644 | 1,611 | |||||
Professional fees | 1,301 | 613 | |||||
FDIC assessments | 694 | 1,037 | |||||
Credit related expenses | 1,715 | 2,180 | |||||
Merger and integration expense | 1,305 | 1,773 | |||||
Other | 3,427 | 2,820 | |||||
Total non-interest expense | 33,275 | 30,435 | |||||
INCOME BEFORE INCOME TAX PROVISION | 28,875 | 39,469 | |||||
INCOME TAX PROVISION | 11,414 | 15,535 | |||||
NET INCOME | $ | 17,461 | $ | 23,934 | |||
DIVIDENDS AND DISCOUNT ACCRETION ON PREFERRED STOCK | $ | — | $ | (1,869 | ) | ||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 17,461 | $ | 22,065 | |||
EARNINGS PER COMMON SHARE | |||||||
Basic | $ | 0.22 | $ | 0.28 | |||
Diluted | $ | 0.22 | $ | 0.28 |
BBCN BANCORP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | |||||||
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Net income | $ | 17,461 | $ | 23,934 | |||
Other comprehensive income: | |||||||
Unrealized loss on securities available for sale and interest only strips | (3,653 | ) | (312 | ) | |||
Reclassification adjustments for gains realized in income (1) | (54 | ) | (816 | ) | |||
Tax benefit | (1,581 | ) | (474 | ) | |||
Change in unrealized gain on securities available for sale and interest only strips | (2,126 | ) | (654 | ) | |||
Reclassification adjustment for the deferred gain on early settlement of interest-rate caps | — | (11 | ) | ||||
Tax benefit | — | (4 | ) | ||||
Change in unrealized gain on interest-rate caps, net of tax | — | (7 | ) | ||||
Total other comprehensive loss | (2,126 | ) | (661 | ) | |||
Total comprehensive income | $ | 15,335 | $ | 23,273 |
(1) | Reclassification adjustments realized in income were included in net gains on sales of securities available for sale. |
BBCN BANCORP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) | ||||||||||||||||||||||
Common stock | ||||||||||||||||||||||
Preferred stock | Shares | Amount | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss), net | |||||||||||||||||
(In thousands, except share data) | ||||||||||||||||||||||
BALANCE, JANUARY 1, 2012 | $ | 119,350 | 77,984,252 | $ | 78 | $ | 524,644 | $ | 142,909 | $ | 8,958 | |||||||||||
Issuance of additional shares pursuant to various stock plans | 12,139 | 81 | ||||||||||||||||||||
Stock-based compensation | 398 | |||||||||||||||||||||
Preferred stock cash dividends accrued (5%) | (1,525 | ) | ||||||||||||||||||||
Accretion of preferred stock discount | 344 | (344 | ) | |||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||
Net income | 23,934 | |||||||||||||||||||||
Other comprehensive loss | (661 | ) | ||||||||||||||||||||
BALANCE, MARCH 31, 2012 | $ | 119,694 | 77,996,391 | $ | 78 | $ | 525,123 | $ | 164,974 | $ | 8,297 | |||||||||||
BALANCE, JANUARY 1, 2013 | $ | — | 78,041,511 | $ | 78 | $ | 525,354 | $ | 216,590 | $ | 9,082 | |||||||||||
Acquisition of Pacific International Bank | 663,843 | 1 | 8,640 | |||||||||||||||||||
Issuance of additional shares pursuant to various stock plans | 106,786 | 414 | ||||||||||||||||||||
Tax effect of stock plans | (26 | ) | ||||||||||||||||||||
Stock-based compensation | 709 | |||||||||||||||||||||
Cash dividend declared on common stock ($0.05 per share) | (3,902 | ) | ||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||
Net income | 17,461 | |||||||||||||||||||||
Other comprehensive loss | $ | (2,126 | ) | |||||||||||||||||||
BALANCE, MARCH 31, 2013 | $ | — | 78,812,140 | $ | 79 | $ | 535,091 | $ | 230,149 | $ | 6,956 | |||||||||||
BBCN BANCORP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
Three Months Ended March 31 | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 17,461 | $ | 23,934 | |||
Adjustments to reconcile net income to net cash from operating activities: | |||||||
Depreciation, amortization, net of discount accretion | (2,717 | ) | 2,023 | ||||
Stock-based compensation expense | 709 | 398 | |||||
Provision for loan losses | 7,506 | 2,600 | |||||
Valuation adjustment of loans held for sale | — | 668 | |||||
Valuation adjustment of OREO | 115 | 390 | |||||
Proceeds from sales of loans | 29,144 | 37,904 | |||||
Originations of loans held for sale | (23,713 | ) | (43,822 | ) | |||
Net gains on sales of SBA and other loans | (2,737 | ) | (2,963 | ) | |||
Net change in bank owned life insurance | (312 | ) | (305 | ) | |||
Net gains on sales of securities available for sale | (54 | ) | (816 | ) | |||
Net gains on sales of OREO | (2 | ) | (61 | ) | |||
Net valuation gains on interest rate swaps and caps | — | (3 | ) | ||||
Change in accrued interest receivable | (730 | ) | 1,186 | ||||
Change in deferred income taxes | 1,524 | 6,058 | |||||
Change in prepaid FDIC insurance | 614 | 960 | |||||
Change in investments in affordable housing partnership | 523 | 513 | |||||
Change in FDIC loss share receivable | 1,411 | (27 | ) | ||||
Change in other assets | 675 | (5,227 | ) | ||||
Change in accrued interest payable | (104 | ) | (34 | ) | |||
Change in other liabilities | (9,836 | ) | 12,197 | ||||
Net cash provided by operating activities | 19,477 | 35,573 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Net change in loans receivable | (69,771 | ) | (1,028 | ) | |||
Proceeds from sales of securities available for sale | 6,636 | 1,883 | |||||
Proceeds from sales of OREO | 849 | 2,066 | |||||
Proceeds from matured term federal funds | — | 40,000 | |||||
Proceeds from sales of equipment | — | 3 | |||||
Purchase of premises and equipment | (1,671 | ) | (752 | ) | |||
Purchase of securities available for sale | (69,821 | ) | — | ||||
Purchase of FRB stock | — | 1,309 | |||||
Redemption of FHLB stock | 16 | — | |||||
Purchase of term federal funds | — | (20,000 | ) | ||||
Proceeds from matured or paid-down securities available for sale | 52,488 | 39,334 | |||||
Net cash received from acquisition | 25,968 | — | |||||
Redemption of preferred stock upon the acquisition | (7,475 | ) | — | ||||
Net cash used in investing activities | (62,781 | ) | 62,815 | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Net change in deposits | 28,412 | (20,428 | ) | ||||
Cash dividends paid on Preferred Stock | — | (1,410 | ) | ||||
Proceeds from FHLB advances | 90,000 | — | |||||
Repayment of FHLB advances | (103,697 | ) | (11,062 | ) | |||
Cash dividends paid on Common Stock | (3,902 | ) | — | ||||
Issuance of additional stock pursuant to various stock plans | 388 | 81 | |||||
Net cash used in financing activities | 11,201 | (32,819 | ) | ||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (32,103 | ) | 65,569 | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 312,916 | 300,110 | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 280,813 | $ | 365,679 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||
Interest paid | $ | 7,057 | $ | 7,730 | |||
Income taxes paid | $ | 16,291 | $ | (4,250 | ) | ||
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES | |||||||
Transfer from loans receivable to OREO | $ | 1,985 | $ | 412 | |||
Non-cash goodwill adjustment, net | $ | — | $ | 591 | |||
Pacific International Bank Acquisition: | |||||||
Assets acquired | $ | 178,732 | $ | — | |||
Liabilities assumed | $ | (165,828 | ) | $ | — |
1. | BBCN Bancorp, Inc. |
2. | Basis of Presentation |
3. | Business Combinations |
(In thousands) | ||||
Consideration paid: | ||||
BBCN common stock issued | $ | 8,437 | ||
Cash in lieu of fractional shares paid to PIB stockholders | 1 | |||
Redemption of Preferred Stock | 7,475 | |||
Total consideration paid | $ | 15,913 | ||
Assets Acquired: | ||||
Cash and cash equivalents | $ | 25,968 | ||
Investment securities available for sale | 7,810 | |||
Loans, net | 131,589 | |||
FRB and FHLB stock | 1,829 | |||
OREO | 3,418 | |||
Deferred tax assets, net | 5,000 | |||
Other assets | 3,118 | |||
Liabilities Assumed: | ||||
Deposits | (143,665 | ) | ||
Borrowings | (14,698 | ) | ||
Subordinated debentures | (4,108 | ) | ||
Other liabilities | (3,874 | ) | ||
Total identifiable net assets | $ | 12,387 | ||
Excess of consideration paid over fair value of net assets acquired (goodwill) | $ | 3,526 |
(In thousands) | |||
Contractually required principal and interest at acquisition | $ | 54,462 | |
Contractual cash flows not expected to be collected (nonaccretable discount) | 9,687 | ||
Expected cash flows at acquisition | 44,775 | ||
Interest component of expected cash flows (accretable discount) | 4.945 | ||
Fair value of acquired loans | $ | 39,830 |
For the three months ended March 31, 2013 | |||
(In thousands) | |||
Balance, beginning of period | $ | 89,878 | |
Acquired goodwill | 3,526 | ||
Impairment | — | ||
Balance, end of period | $ | 93,404 |
4. | Stock-Based Compensation |
Number of Shares | Weighted- Average Exercise Price Per Share | Weighted- Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Outstanding - January 1, 2013 | 797,805 | $ | 16.70 | |||||||||
Granted | — | — | ||||||||||
Exercised | (48,000 | ) | 8.64 | |||||||||
Forfeited | — | — | ||||||||||
Outstanding - March 31, 2013 | 749,805 | $ | 17.21 | 2.56 | $ | 856,000 | ||||||
Options exercisable - March 31, 2013 | 741,805 | $ | 17.31 | 2.48 | $ | 820,000 | ||||||
Unvested options expected to vest after March 31, 2013 | 8,000 | $ | 8.64 | 9.51 | $ | 36,000 |
Number of Shares | Weighted- Average Grant Date Fair Value | Weighted- Average Remaining Contractual Life (Years) | ||||||
Outstanding - January 1, 2013 | 512,183 | $ | 9.78 | |||||
Granted | 5,000 | 13.15 | ||||||
Vested | (58,740 | ) | 9.40 | |||||
Forfeited | (16,650 | ) | 10.42 | |||||
Outstanding - March 31, 2013 | 441,793 | $ | 9.84 | 8.81 |
Stock Based Compensation Expense | |||
(In thousands) | |||
Remainder of 2013 | $ | 651 | |
For the year ended December 31: | |||
2014 | 610 | ||
2015 | 589 | ||
2016 | 96 | ||
2017 | 7 | ||
Total | $ | 1,953 |
5. | Earnings Per Share (“EPS”) |
For the three months ended March 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Net income available to common stockholders (Numerator) | Shares (Denominator) | Per Share (Amount) | Net income available to common stockholders (Numerator) | Shares (Denominator) | Per Share (Amount) | ||||||||||||||||
(In thousands, except share and per share data) | |||||||||||||||||||||
Net income as reported | $ | 17,461 | $ | 23,934 | |||||||||||||||||
Less: preferred stock dividends and accretion of preferred stock discount | — | (1,869 | ) | ||||||||||||||||||
Basic EPS - common stock | $ | 17,461 | 78,389,434 | $ | 0.22 | $ | 22,065 | 77,987,342 | $ | 0.28 | |||||||||||
Effect of Dilutive Securities: | |||||||||||||||||||||
Stock Options and Performance Units | 79,311 | 73,323 | |||||||||||||||||||
Common stock warrants | 11,926 | 41,153 | |||||||||||||||||||
Diluted EPS - common stock | $ | 17,461 | 78,480,671 | $ | 0.22 | $ | 22,065 | 78,101,818 | $ | 0.28 |
At March 31, 2013 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
(In thousands) | |||||||||||||||
Debt securities: | |||||||||||||||
GSE collateralized mortgage obligations* | $ | 299,271 | $ | 4,451 | $ | (1,138 | ) | $ | 302,584 | ||||||
GSE mortgage-backed securities* | 381,570 | 9,150 | (994 | ) | 389,726 | ||||||||||
Trust preferred securities | 4,505 | — | (573 | ) | 3,932 | ||||||||||
Municipal bonds | 5,706 | 575 | — | 6,281 | |||||||||||
Total debt securities | 691,052 | 14,176 | (2,705 | ) | 702,523 | ||||||||||
Mutual funds - GSE mortgage related securities | 14,710 | 208 | — | 14,918 | |||||||||||
$ | 705,762 | $ | 14,384 | $ | (2,705 | ) | $ | 717,441 | |||||||
At December 31, 2012 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
(In thousands) | |||||||||||||||
Debt securities: | |||||||||||||||
GSE collateralized mortgage obligations* | $ | 249,373 | $ | 5,649 | $ | (110 | ) | $ | 254,912 | ||||||
GSE mortgage-backed securities* | 415,925 | 10,277 | (662 | ) | 425,540 | ||||||||||
Trust preferred securities | 4,502 | — | (665 | ) | 3,837 | ||||||||||
Municipal bonds | 4,506 | 612 | — | 5,118 | |||||||||||
Total debt securities | 674,306 | 16,538 | (1,437 | ) | 689,407 | ||||||||||
Mutual funds - GSE mortgage related securities | 14,710 | 286 | — | 14,996 | |||||||||||
$ | 689,016 | $ | 16,824 | $ | (1,437 | ) | $ | 704,403 |
* | Government Sponsored Enterprises (GSE) investments were issued by GNMA, FNMA and FHLMC and are all residential mortgage-backed investments. |
For the three months ended March 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Proceeds | $ | 6,636 | $ | 1,883 | |||
Gross gains | 54 | 816 | |||||
Gross losses | — | — |
Amortized Cost | Estimated Fair Value | ||||||
(In thousands) | |||||||
Available for sale: | |||||||
Due within one year | $ | — | $ | — | |||
Due after one year through five years | 340 | 356 | |||||
Due after five years through ten years | 3,883 | 4,393 | |||||
Due after ten years | 5,988 | 5,464 | |||||
GSE collateralized mortgage obligations | 299,271 | 302,584 | |||||
GSE mortgage-backed securities | 381,570 | 389,726 | |||||
Mutual funds - GSE mortgage related securities | 14,710 | 14,918 | |||||
$ | 705,762 | $ | 717,441 |
At March 31, 2013 | ||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||
Description of Securities | Number of Securities | Fair Value | Gross Unrealized Losses | Number of Securities | Fair Value | Gross Unrealized Losses | Number of Securities | Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
GSE collateralized mortgage obligations | 10 | $ | 109,327 | $ | (1,138 | ) | — | $ | — | $ | — | 10 | $ | 109,327 | $ | (1,138 | ) | |||||||||||||||
GSE mortgage-backed securities | 10 | 43,668 | (925 | ) | 3 | 7,675 | (69 | ) | 13 | 51,343 | (994 | ) | ||||||||||||||||||||
Trust preferred securities | — | — | — | 1 | 3,932 | (573 | ) | 1 | 3,932 | (573 | ) | |||||||||||||||||||||
20 | $ | 152,995 | $ | (2,063 | ) | 4 | $ | 11,607 | $ | (642 | ) | 24 | $ | 164,602 | $ | (2,705 | ) |
At December 31, 2012 | ||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||
Description of Securities | Number of Securities | Fair Value | Gross Unrealized Losses | Number of Securities | Fair Value | Gross Unrealized Losses | Number of Securities | Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
GSE collateralized mortgage obligations | 3 | $ | 18,009 | $ | (110 | ) | — | $ | — | $ | — | 3 | $ | 18,009 | $ | (110 | ) | |||||||||||||||
GSE mortgage-backed securities | 7 | 32,406 | (597 | ) | 3 | 8,251 | (65 | ) | 10 | 40,657 | (662 | ) | ||||||||||||||||||||
Trust Preferred securities | — | — | — | 1 | 3,837 | (665 | ) | 1 | 3,837 | (665 | ) | |||||||||||||||||||||
10 | $ | 50,415 | $ | (707 | ) | 4 | $ | 12,088 | $ | (730 | ) | 14 | $ | 62,503 | $ | (1,437 | ) |
7. | Loans Receivable and Allowance for Loan Losses |
March 31, 2013 | December 31, 2012 | ||||||
(In thousands) | |||||||
Loan portfolio composition | |||||||
Real estate loans: | |||||||
Residential | $ | 10,667 | $ | 9,247 | |||
Commercial & industrial | 3,294,978 | 3,100,466 | |||||
Construction | 69,087 | 65,045 | |||||
Total real estate loans | 3,374,732 | 3,174,758 | |||||
Commercial business | 943,860 | 921,556 | |||||
Trade finance | 134,393 | 152,070 | |||||
Consumer and other | 48,881 | 49,954 | |||||
Total loans outstanding | 4,501,866 | 4,298,338 | |||||
Less: deferred loan fees | (1,820 | ) | (2,086 | ) | |||
Gross loans receivable | 4,500,046 | 4,296,252 | |||||
Less: allowance for loan losses | (73,268 | ) | (66,941 | ) | |||
Loans receivable, net | $ | 4,426,778 | $ | 4,229,311 |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Balance at beginning of period | $ | 18,652 | $ | 31,999 | |||
Additions due to acquisitions during the period | 4,945 | — | |||||
Accretion | (3,446 | ) | (3,561 | ) | |||
Changes in expected cash flows | 3,259 | 1,350 | |||||
Balance at end of period | $ | 23,410 | $ | 29,788 |
For the three months ended March 31, 2013 | |||||||||||||||||||||||||||||||||||
Legacy | Acquired | Total | |||||||||||||||||||||||||||||||||
Real Estate | Commercial Business | Trade Finance | Consumer and Other | Real Estate | Commercial Business | Trade Finance | Consumer and Other | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2013 | |||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 41,505 | $ | 16,490 | $ | 2,349 | $ | 658 | $ | 4,718 | $ | 1,115 | $ | 3 | $ | 103 | $ | 66,941 | |||||||||||||||||
Provision (credit) for loan losses | 3,069 | 39 | (625 | ) | (129 | ) | 5,320 | (189 | ) | (3 | ) | 24 | 7,506 | ||||||||||||||||||||||
Loans charged off | (905 | ) | (183 | ) | (26 | ) | (7 | ) | (151 | ) | (124 | ) | — | (33 | ) | (1,429 | ) | ||||||||||||||||||
Recoveries of charged offs | 40 | 176 | — | 16 | 2 | 7 | — | 9 | 250 | ||||||||||||||||||||||||||
Balance, end of period | $ | 43,709 | $ | 16,522 | $ | 1,698 | $ | 538 | $ | 9,889 | $ | 809 | $ | — | $ | 103 | $ | 73,268 |
For the three months ended March 31, 2012 | |||||||||||||||||||||||||||||||||||
Legacy | Acquired | Total | |||||||||||||||||||||||||||||||||
Real Estate | Commercial Business | Trade Finance | Consumer and Other | Real Estate | Commercial Business | Trade Finance | Consumer and Other | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2012 | |||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 39,040 | $ | 20,681 | $ | 1,786 | $ | 445 | $ | — | $ | — | $ | — | $ | — | $ | 61,952 | |||||||||||||||||
Provision (credit) for loan losses | (1,317 | ) | 1,627 | (23 | ) | 548 | 1,254 | 477 | 16 | 18 | 2,600 | ||||||||||||||||||||||||
Loans charged off | (1,934 | ) | (1,362 | ) | — | — | (14 | ) | (47 | ) | — | (25 | ) | (3,382 | ) | ||||||||||||||||||||
Recoveries of charged offs | 20 | 645 | 60 | 17 | 303 | 87 | — | 7 | 1,139 | ||||||||||||||||||||||||||
Balance, end of period | $ | 35,809 | $ | 21,591 | $ | 1,823 | $ | 1,010 | $ | 1,543 | $ | 517 | $ | 16 | $ | — | $ | 62,309 |
March 31, 2013 | |||||||||||||||||||||||||||||||||||
Legacy | Acquired | Total | |||||||||||||||||||||||||||||||||
Real Estate | Commercial Business | Trade Finance | Consumer and Other | Real Estate | Commercial Business | Trade Finance | Consumer and Other | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 6,121 | $ | 2,692 | $ | 77 | $ | 10 | $ | 5,355 | $ | 807 | $ | — | $ | — | $ | 15,062 | |||||||||||||||||
Collectively evaluated for impairment | 37,588 | 13,830 | 1,621 | 528 | — | 2 | — | 103 | 53,672 | ||||||||||||||||||||||||||
Acquired Credit Impaired Loans | — | — | — | — | 4,534 | — | — | — | 4,534 | ||||||||||||||||||||||||||
Total | $ | 43,709 | $ | 16,522 | $ | 1,698 | $ | 538 | $ | 9,889 | $ | 809 | $ | — | $ | 103 | $ | 73,268 | |||||||||||||||||
Loans outstanding: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 41,077 | $ | 20,912 | $ | 6,886 | $ | 534 | $ | 28,488 | $ | 3,351 | $ | — | $ | 784 | $ | 102,032 | |||||||||||||||||
Collectively evaluated for impairment | 2,545,220 | 751,927 | 127,016 | 27,247 | 644,708 | 116,308 | — | 17,582 | 4,230,008 | ||||||||||||||||||||||||||
Acquired Credit Impaired Loans | — | — | — | — | 115,239 | 51,362 | 491 | 2,734 | 169,826 | ||||||||||||||||||||||||||
Total | $ | 2,586,297 | $ | 772,839 | $ | 133,902 | $ | 27,781 | $ | 788,435 | $ | 171,021 | $ | 491 | $ | 21,100 | $ | 4,501,866 |
December 31, 2012 | |||||||||||||||||||||||||||||||||||
Legacy | Acquired | Total | |||||||||||||||||||||||||||||||||
Real Estate | Commercial Business | Trade Finance | Consumer and Other | Real Estate | Commercial Business | Trade Finance | Consumer and Other | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 4,723 | $ | 3,084 | $ | 96 | $ | — | $ | 183 | $ | 1,074 | $ | — | $ | — | $ | 9,160 | |||||||||||||||||
Collectively evaluated for impairment | 36,782 | 13,406 | 2,253 | 658 | — | 41 | 3 | 103 | 53,246 | ||||||||||||||||||||||||||
Acquired Credit Impaired Loans | — | — | — | — | 4,535 | — | — | — | 4,535 | ||||||||||||||||||||||||||
Total | $ | 41,505 | $ | 16,490 | $ | 2,349 | $ | 658 | $ | 4,718 | $ | 1,115 | $ | 3 | $ | 103 | $ | 66,941 | |||||||||||||||||
Loans outstanding: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 37,394 | $ | 23,951 | $ | 6,199 | $ | 536 | $ | 17,951 | $ | 3,323 | $ | — | $ | 802 | $ | 90,156 | |||||||||||||||||
Collectively evaluated for impairment | 2,387,080 | 729,904 | 144,173 | 27,284 | 628,449 | 114,621 | 242 | 18,257 | 4,050,010 | ||||||||||||||||||||||||||
Acquired Credit Impaired Loans | — | — | — | — | 103,884 | 49,757 | 1,456 | 3,075 | 158,172 | ||||||||||||||||||||||||||
Total | $ | 2,424,474 | $ | 753,855 | $ | 150,372 | $ | 27,820 | $ | 750,284 | $ | 167,701 | $ | 1,698 | $ | 22,134 | $ | 4,298,338 |
March 31, 2013 | December 31, 2012 | ||||||
(In thousands) | |||||||
With Allocated Allowance | |||||||
Without charge-off | $ | 72,518 | $ | 65,526 | |||
With charge-off | 1,125 | 2,599 | |||||
With No Allocated Allowance | |||||||
Without charge-off | 23,096 | 17,536 | |||||
With charge-off | 5,293 | 4,495 | |||||
Allowance on Impaired Loans | (15,062 | ) | (9,160 | ) | |||
Impaired Loans, net of allowance | $ | 86,970 | $ | 80,996 |
As of March 31, 2013 | For the three months ended March 31, 2013 | For the three months ended March 31, 2012 | ||||||||||||||||||||||||||
Total Impaired Loans | Recorded Investment* | Unpaid Contractual Principal Balance | Related Allowance | Average Recorded Investment* | Interest Income Recognized during Impairment | Average Recorded Investment* | Interest Income Recognized during Impairment | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
With Related Allowance: | ||||||||||||||||||||||||||||
Real Estate—Residential | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Real Estate—Commercial | ||||||||||||||||||||||||||||
Retail | 7,680 | 7,885 | 1,387 | 6,578 | 51 | 2,169 | 12 | |||||||||||||||||||||
Hotel & Motel | 12,138 | 12,138 | 2,859 | 10,564 | 137 | 19,997 | 211 | |||||||||||||||||||||
Gas Station & Car Wash | 1,379 | 2,194 | 69 | 1,635 | 11 | 3,827 | 71 | |||||||||||||||||||||
Mixed Use | 952 | 970 | 276 | 926 | 13 | 3,965 | 73 | |||||||||||||||||||||
Industrial & Warehouse | 11,127 | 11,750 | 5,485 | 6,600 | 6 | 4,748 | 58 | |||||||||||||||||||||
Other | 11,157 | 12,199 | 1,400 | 13,670 | 159 | 13,754 | 100 | |||||||||||||||||||||
Real Estate—Construction | — | — | — | — | — | 64 | — | |||||||||||||||||||||
Commercial Business | 22,270 | 24,686 | 3,499 | 24,312 | 242 | 23,033 | 179 | |||||||||||||||||||||
Trade Finance | 6,886 | 7,884 | 77 | 6,543 | 73 | 2,468 | 7 | |||||||||||||||||||||
Consumer and Other | 54 | 54 | 10 | 55 | 1 | 240 | — | |||||||||||||||||||||
$ | 73,643 | $ | 79,760 | $ | 15,062 | $ | 70,883 | $ | 693 | $ | 74,265 | $ | 711 | |||||||||||||||
With No Related Allowance: | ||||||||||||||||||||||||||||
Real Estate—Residential | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Real Estate—Commercial | ||||||||||||||||||||||||||||
Retail | 1,310 | 2,886 | — | 1,913 | — | 1,829 | 5 | |||||||||||||||||||||
Hotel & Motel | 6,125 | 8,715 | — | 6,168 | — | — | — | |||||||||||||||||||||
Gas Station & Car Wash | 4,232 | 6,682 | — | 2,981 | 15 | 883 | — | |||||||||||||||||||||
Mixed Use | 881 | 916 | — | 890 | — | — | — | |||||||||||||||||||||
Industrial & Warehouse | 4,844 | 7,766 | — | 4,618 | 3 | 4,985 | — | |||||||||||||||||||||
Other | 6,057 | 10,321 | — | 4,214 | 39 | 3,175 | 8 | |||||||||||||||||||||
Real Estate—Construction | 1,683 | 1,683 | — | 1,697 | 22 | 1,710 | 28 | |||||||||||||||||||||
Commercial Business | 1,993 | 3,777 | — | 1,456 | 16 | 13,682 | 181 | |||||||||||||||||||||
Trade Finance | — | — | — | — | — | 2,364 | 41 | |||||||||||||||||||||
Consumer and Other | 1,264 | 1,312 | — | 1,273 | 5 | 147 | — | |||||||||||||||||||||
$ | 28,389 | $ | 44,058 | $ | — | $ | 25,210 | $ | 100 | $ | 28,775 | $ | 263 | |||||||||||||||
Total | $ | 102,032 | $ | 123,818 | $ | 15,062 | $ | 96,093 | $ | 793 | $ | 103,040 | $ | 974 |
* | Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts. |
As of March 31, 2013 | For the three months ended March 31, 2013 | For the three months ended March 31, 2012 | ||||||||||||||||||||||||||
Impaired Acquired Loans | Recorded Investment* | Unpaid Contractual Principal Balance | Related Allowance | Average Recorded Investment* | Interest Income Recognized during Impairment | Average Recorded Investment* | Interest Income Recognized during Impairment | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
With Related Allowance: | ||||||||||||||||||||||||||||
Real Estate—Residential | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Real Estate—Commercial | ||||||||||||||||||||||||||||
Retail | 2,079 | 2,117 | 51 | 1,683 | 25 | 111 | 4 | |||||||||||||||||||||
Hotel & Motel | — | — | — | — | — | 3,107 | — | |||||||||||||||||||||
Gas Station & Car Wash | — | — | — | — | — | 142 | — | |||||||||||||||||||||
Mixed Use | — | — | — | — | — | — | — | |||||||||||||||||||||
Industrial & Warehouse | 10,273 | 10,870 | 5,092 | 5,552 | — | — | — | |||||||||||||||||||||
Other | 3,146 | 3,184 | 212 | 3,709 | 62 | 17 | — | |||||||||||||||||||||
Real Estate—Construction | — | — | — | — | — | — | ||||||||||||||||||||||
Commercial Business | 3,153 | 3,665 | 807 | 3,063 | 8 | 299 | 2 | |||||||||||||||||||||
Trade Finance | — | — | — | — | — | — | — | |||||||||||||||||||||
Consumer and Other | — | — | — | — | — | — | — | |||||||||||||||||||||
$ | 18,651 | $ | 19,836 | $ | 6,162 | $ | 14,007 | $ | 95 | $ | 3,676 | $ | 6 | |||||||||||||||
With No Related Allowance: | ||||||||||||||||||||||||||||
Real Estate—Residential | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Real Estate—Commercial | ||||||||||||||||||||||||||||
Retail | 59 | 103 | — | 430 | — | — | — | |||||||||||||||||||||
Hotel & Motel | 5,929 | 7,375 | — | 5,959 | — | — | — | |||||||||||||||||||||
Gas Station & Car Wash | 1,856 | 3,001 | — | 1,315 | 15 | 327 | — | |||||||||||||||||||||
Mixed Use | — | — | — | — | — | — | — | |||||||||||||||||||||
Industrial & Warehouse | 3,399 | 3,659 | — | 3,294 | 3 | 1,514 | — | |||||||||||||||||||||
Other | 1,747 | 4,282 | — | 1,276 | 8 | 831 | 8 | |||||||||||||||||||||
Real Estate—Construction | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial Business | 198 | 214 | — | 273 | — | 600 | 18 | |||||||||||||||||||||
Trade Finance | — | — | — | — | — | — | — | |||||||||||||||||||||
Consumer and Other | 784 | 832 | — | 793 | — | — | — | |||||||||||||||||||||
$ | 13,972 | $ | 19,466 | $ | — | $ | 13,340 | $ | 26 | $ | 3,272 | $ | 26 | |||||||||||||||
Total | $ | 32,623 | $ | 39,302 | $ | 6,162 | $ | 27,347 | $ | 121 | $ | 6,948 | $ | 32 |
* | Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts. |
As of December 31, 2012 | For the year ended December 31, 2012 | |||||||||||||||||||
Total Impaired Loans | Recorded Investment* | Unpaid Contractual Principal Balance | Related Allowance | Average Recorded Investment* | Interest Income Recognized during Impairment | |||||||||||||||
(In thousands) | ||||||||||||||||||||
With Related Allowance: | ||||||||||||||||||||
Real Estate—Residential | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Real Estate—Commercial | ||||||||||||||||||||
Retail | 5,477 | 5,610 | 1,167 | 3,512 | 255 | |||||||||||||||
Hotel & Motel | 8,990 | 8,995 | 1,860 | 17,536 | 426 | |||||||||||||||
Gas Station & Car Wash | 1,892 | 2,440 | 73 | 2,908 | — | |||||||||||||||
Mixed Use | 900 | 976 | 250 | 3,182 | — | |||||||||||||||
Industrial & Warehouse | 2,074 | 2,153 | 567 | 3,052 | 66 | |||||||||||||||
Other | 16,184 | 16,389 | 989 | 14,322 | 805 | |||||||||||||||
Real Estate—Construction | — | — | — | 26 | — | |||||||||||||||
Commercial Business | 26,354 | 29,073 | 4,158 | 25,227 | 1,252 | |||||||||||||||
Trade Finance | 6,199 | 7,173 | 96 | 3,510 | 248 | |||||||||||||||
Consumer and Other | 55 | 56 | — | 119 | 4 | |||||||||||||||
$ | 68,125 | $ | 72,865 | $ | 9,160 | $ | 73,394 | $ | 3,056 | |||||||||||
With No Related Allowance: | ||||||||||||||||||||
Real Estate—Residential | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Real Estate—Commercial | ||||||||||||||||||||
Retail | 2,516 | 5,404 | — | 1,602 | 48 | |||||||||||||||
Hotel & Motel | 6,212 | 8,202 | — | 1,365 | — | |||||||||||||||
Gas Station & Car Wash | 1,731 | 4,359 | — | 1,775 | — | |||||||||||||||
Mixed Use | 899 | 923 | — | 180 | — | |||||||||||||||
Industrial & Warehouse | 4,392 | 6,450 | — | 4,408 | 160 | |||||||||||||||
Other | 2,371 | 6,283 | — | 2,598 | — | |||||||||||||||
Real Estate—Construction | 1,710 | 1,710 | — | 1,710 | 111 | |||||||||||||||
Commercial Business | 920 | 1,368 | — | 8,028 | 18 | |||||||||||||||
Trade Finance | — | — | — | 946 | — | |||||||||||||||
Consumer and Other | 1,280 | 1,316 | — | 357 | 20 | |||||||||||||||
$ | 22,031 | $ | 36,015 | $ | — | $ | 22,969 | $ | 357 | |||||||||||
Total | $ | 90,156 | $ | 108,880 | $ | 9,160 | $ | 96,363 | $ | 3,413 |
* | Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts. |
As of December 31, 2012 | For the year ended December 31, 2012 | |||||||||||||||||||
Impaired Acquired Loans | Recorded Investment* | Unpaid Contractual Principal Balance | Related Allowance | Average Recorded Investment* | Interest Income Recognized during Impairment | |||||||||||||||
(In thousands) | ||||||||||||||||||||
With Related Allowance: | ||||||||||||||||||||
Real Estate—Residential | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Real Estate—Commercial | ||||||||||||||||||||
Retail | 1,286 | 1,286 | 9 | 920 | 64 | |||||||||||||||
Hotel & Motel | — | — | — | 3,676 | — | |||||||||||||||
Gas Station & Car Wash | — | — | — | 57 | — | |||||||||||||||
Mixed Use | — | — | — | — | — | |||||||||||||||
Industrial & Warehouse | 832 | 887 | 2 | 331 | 36 | |||||||||||||||
Other | 4,272 | 4,461 | 172 | 1,711 | 288 | |||||||||||||||
Real Estate—Construction | — | — | — | — | — | |||||||||||||||
Commercial Business | 2,974 | 3,072 | 1,074 | 1,625 | 26 | |||||||||||||||
Trade Finance | — | — | — | — | — | |||||||||||||||
Consumer and Other | — | — | — | — | — | |||||||||||||||
$ | 9,364 | $ | 9,706 | $ | 1,257 | $ | 8,320 | $ | 414 | |||||||||||
With No Related Allowance: | ||||||||||||||||||||
Real Estate—Residential | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Real Estate—Commercial | ||||||||||||||||||||
Retail | 800 | 840 | — | 161 | 48 | |||||||||||||||
Hotel & Motel | 5,990 | 7,375 | — | 1,198 | — | |||||||||||||||
Gas Station & Car Wash | 774 | 1,865 | — | 608 | — | |||||||||||||||
Mixed Use | — | — | — | — | — | |||||||||||||||
Industrial & Warehouse | 3,190 | 3,302 | — | 2,005 | 160 | |||||||||||||||
Other | 807 | 3,156 | — | 993 | — | |||||||||||||||
Real Estate—Construction | — | — | — | — | — | |||||||||||||||
Commercial Business | 349 | 681 | — | 680 | 15 | |||||||||||||||
Trade Finance | — | — | — | — | — | |||||||||||||||
Consumer and Other | 802 | 836 | — | 160 | — | |||||||||||||||
$ | 12,712 | $ | 18,055 | $ | — | $ | 5,805 | $ | 223 | |||||||||||
Total | $ | 22,076 | $ | 27,761 | $ | 1,257 | $ | 14,125 | $ | 637 |
* | Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts. |
As of March 31, 2013 | |||||||||||||||||||||||
Past Due and Accruing | |||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 or More Days Past Due | Total | Nonaccrual Loans (3) | Total Delinquent Loans | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Legacy Loans: | |||||||||||||||||||||||
Real estate—Residential | $ | 22 | $ | — | $ | — | $ | 22 | $ | — | $ | 22 | |||||||||||
Real estate—Commercial | |||||||||||||||||||||||
Retail | — | 2,272 | — | 2,272 | 5,001 | 7,273 | |||||||||||||||||
Hotel & Motel | — | — | — | — | 195 | 195 | |||||||||||||||||
Gas Station & Car Wash | 355 | — | — | 355 | 2,696 | 3,051 | |||||||||||||||||
Mixed Use | — | — | — | — | 1,018 | 1,018 | |||||||||||||||||
Industrial & Warehouse | 221 | — | — | 221 | 1,807 | 2,028 | |||||||||||||||||
Other | — | — | — | — | 1,944 | 1,944 | |||||||||||||||||
Real estate—Construction | — | — | — | — | — | — | |||||||||||||||||
Commercial business | 553 | 139 | — | 692 | 3,972 | 4,664 | |||||||||||||||||
Trade finance | — | — | — | — | 941 | 941 | |||||||||||||||||
Consumer and other | 23 | — | — | 23 | — | 23 | |||||||||||||||||
Subtotal | $ | 1,174 | $ | 2,411 | $ | — | $ | 3,585 | $ | 17,574 | $ | 21,159 | |||||||||||
Acquired Loans: (1) | |||||||||||||||||||||||
Real estate—Residential | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Real estate—Commercial | |||||||||||||||||||||||
Retail | 2,447 | — | 1,574 | 4,021 | 60 | 4,081 | |||||||||||||||||
Hotel & Motel | 4,339 | 1,505 | 3,286 | 9,130 | 5,929 | 15,059 | |||||||||||||||||
Gas Station & Car Wash | 3,725 | 1,198 | 2,209 | 7,132 | 782 | 7,914 | |||||||||||||||||
Mixed Use | 90 | — | 244 | 334 | — | 334 | |||||||||||||||||
Industrial & Warehouse | 243 | — | 361 | 604 | 13,552 | 14,156 | |||||||||||||||||
Other | 891 | — | 3,995 | 4,886 | 767 | 5,653 | |||||||||||||||||
Real estate—Construction | — | — | 6,167 | 6,167 | — | 6,167 | |||||||||||||||||
Commercial business | 10,361 | 806 | 3,346 | 14,513 | 2,678 | 17,191 | |||||||||||||||||
Trade finance | 58 | 68 | — | 126 | — | 126 | |||||||||||||||||
Consumer and other | 398 | 271 | 439 | 1,108 | 927 | 2,035 | |||||||||||||||||
Subtotal(2) | $ | 22,552 | $ | 3,848 | $ | 21,621 | $ | 48,021 | $ | 24,695 | $ | 72,716 | |||||||||||
TOTAL | $ | 23,726 | $ | 6,259 | $ | 21,621 | $ | 51,606 | $ | 42,269 | $ | 93,875 |
(1) | The Acquired Loans include Acquired Credit Impaired Loans (ASC 310-30 loans) and Acquired Performing Loans (loans that were pass graded at the time of acquisition). |
(2) | The past due and accruing Acquired Loans include Acquired Credit Impaired Loans accounted for under ASC 310-30 of $20.2 million, $3.8 million and $21.6 million that were 30-59 days, 60-89 days and 90 or more days past due, respectively. |
(3) | Nonaccrual loans exclude the guaranteed portion of delinquent SBA loans that are in liquidation totaling $18.6 million. |
As of December 31, 2012 | |||||||||||||||||||||||
Past Due and Accruing | |||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 or More Days Past Due | Total | Nonaccrual Loans (3) | Total Delinquent Loans | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Legacy Loans: | |||||||||||||||||||||||
Real estate—Residential | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Real estate—Commercial | |||||||||||||||||||||||
Retail | 87 | — | — | 87 | 3,316 | 3,403 | |||||||||||||||||
Hotel & Motel | — | — | — | — | 437 | 437 | |||||||||||||||||
Gas Station & Car Wash | 359 | — | — | 359 | 2,848 | 3,207 | |||||||||||||||||
Mixed Use | 34 | — | — | 34 | 1,799 | 1,833 | |||||||||||||||||
Industrial & Warehouse | — | — | — | — | 1,950 | 1,950 | |||||||||||||||||
Other | — | 115 | — | 115 | 2,379 | 2,494 | |||||||||||||||||
Real estate—Construction | — | — | — | — | — | — | |||||||||||||||||
Commercial business | 298 | 234 | — | 532 | 4,942 | 5,474 | |||||||||||||||||
Trade finance | — | — | — | — | 869 | 869 | |||||||||||||||||
Consumer and other | 190 | — | — | 190 | — | 190 | |||||||||||||||||
Subtotal | $ | 968 | $ | 349 | $ | — | $ | 1,317 | $ | 18,540 | $ | 19,857 | |||||||||||
Acquired Loans: (1) | |||||||||||||||||||||||
Real estate—Residential | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Real estate—Commercial | |||||||||||||||||||||||
Retail | 1,126 | 6,604 | 1,190 | 8,920 | — | 8,920 | |||||||||||||||||
Hotel & Motel | 1,522 | 2,668 | 944 | 5,134 | 5,990 | 11,124 | |||||||||||||||||
Gas Station & Car Wash | 2,218 | 1,109 | 875 | 4,202 | 774 | 4,976 | |||||||||||||||||
Mixed Use | 985 | 1,918 | 1,507 | 4,410 | — | 4,410 | |||||||||||||||||
Industrial & Warehouse | 53 | 3,320 | 61 | 3,434 | — | 3,434 | |||||||||||||||||
Other | 50 | 25 | 5,542 | 5,617 | 937 | 6,554 | |||||||||||||||||
Real estate—Construction | — | — | 5,972 | 5,972 | — | 5,972 | |||||||||||||||||
Commercial business | 1,359 | 1,174 | 1,236 | 3,769 | 2,442 | 6,211 | |||||||||||||||||
Trade finance | — | — | — | — | — | — | |||||||||||||||||
Consumer and other | 98 | 17 | 415 | 530 | 970 | 1,500 | |||||||||||||||||
Subtotal(2) | $ | 7,411 | $ | 16,835 | $ | 17,742 | $ | 41,988 | $ | 11,113 | $ | 53,101 | |||||||||||
TOTAL | $ | 8,379 | $ | 17,184 | $ | 17,742 | $ | 43,305 | $ | 29,653 | $ | 72,958 |
(1) | The Acquired Loans include Acquired Credit Impaired Loans (ASC 310-30 loans) and Acquired Performing Loans (loans that were pass graded at the time of the acquisition). |
(2) | The past due and accruing Acquired Loans include Acquired Credit Impaired Loans accounted for under ASC 310-30 of $7.0 million, $12.1 million and $17.7 million that were 30-59 days, 60-89 days and 90 or more days past due, respectively. |
• | Pass: Loans that meet a preponderance or more of the Company's underwriting criteria and evidence an acceptable level of risk. |
• | Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. |
• | Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. |
• | Doubtful/Loss: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. |
As of March 31, 2013 | |||||||||||||||||||
Pass | Special Mention | Substandard | Doubtful/Loss | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||
Legacy Loans: | |||||||||||||||||||
Real estate—Residential | $ | 9,955 | $ | — | $ | 23 | $ | — | $ | 9,978 | |||||||||
Real estate—Commercial | |||||||||||||||||||
Retail | 643,204 | 3,500 | 14,599 | — | 661,303 | ||||||||||||||
Hotel & Motel | 466,140 | 1,880 | 16,462 | — | 484,482 | ||||||||||||||
Gas Station & Car Wash | 411,935 | 1,014 | 9,453 | — | 422,402 | ||||||||||||||
Mixed Use | 237,996 | 2,117 | 3,440 | — | 243,553 | ||||||||||||||
Industrial & Warehouse | 211,181 | 12,342 | 4,149 | 362 | 228,034 | ||||||||||||||
Other | 458,547 | 1,213 | 15,869 | — | 475,629 | ||||||||||||||
Real estate—Construction | 59,233 | — | 1,683 | — | 60,916 | ||||||||||||||
Commercial business | 728,412 | 23,577 | 20,735 | 115 | 772,839 | ||||||||||||||
Trade finance | 112,989 | 14,027 | 6,886 | — | 133,902 | ||||||||||||||
Consumer and other | 26,766 | 11 | 1,004 | — | 27,781 | ||||||||||||||
Subtotal | $ | 3,366,358 | $ | 59,681 | $ | 94,303 | $ | 477 | $ | 3,520,819 | |||||||||
Acquired Loans: | |||||||||||||||||||
Real estate—Residential | $ | 229 | $ | 251 | $ | 209 | $ | — | $ | 689 | |||||||||
Real estate—Commercial | |||||||||||||||||||
Retail | 219,918 | 5,235 | 13,382 | 60 | 238,595 | ||||||||||||||
Hotel & Motel | 123,518 | 13,149 | 18,908 | — | 155,575 | ||||||||||||||
Gas Station & Car Wash | 39,774 | 5,561 | 12,944 | — | 58,279 | ||||||||||||||
Mixed Use | 37,073 | 6,643 | 5,321 | — | 49,037 | ||||||||||||||
Industrial & Warehouse | 104,167 | 1,455 | 19,311 | — | 124,933 | ||||||||||||||
Other | 131,057 | 4,946 | 17,154 | — | 153,157 | ||||||||||||||
Real estate—Construction | 2,003 | — | 6,167 | — | 8,170 | ||||||||||||||
Commercial business | 119,344 | 15,037 | 35,618 | 1,022 | 171,021 | ||||||||||||||
Trade finance | — | — | 491 | — | 491 | ||||||||||||||
Consumer and other | 16,668 | 445 | 3,893 | 94 | 21,100 | ||||||||||||||
Subtotal | $ | 793,751 | $ | 52,722 | $ | 133,398 | $ | 1,176 | $ | 981,047 | |||||||||
Total | $ | 4,160,109 | $ | 112,403 | $ | 227,701 | $ | 1,653 | $ | 4,501,866 |
As of December 31, 2012 | |||||||||||||||||||
Pass | Special Mention | Substandard | Doubtful/Loss | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||
Legacy Loans: | |||||||||||||||||||
Real estate—Residential | $ | 9,223 | $ | — | $ | 24 | $ | — | $ | 9,247 | |||||||||
Real estate—Commercial | |||||||||||||||||||
Retail | 589,720 | 3,584 | 12,303 | — | 605,607 | ||||||||||||||
Hotel & Motel | 453,908 | 1,894 | 16,795 | — | 472,597 | ||||||||||||||
Gas Station & Car Wash | 370,803 | 1,288 | 9,982 | — | 382,073 | ||||||||||||||
Mixed Use | 233,687 | 2,131 | 3,423 | — | 239,241 | ||||||||||||||
Industrial & Warehouse | 202,066 | 1,010 | 4,295 | 370 | 207,741 | ||||||||||||||
Other | 431,685 | 1,219 | 17,084 | — | 449,988 | ||||||||||||||
Real estate—Construction | 56,270 | — | 1,710 | — | 57,980 | ||||||||||||||
Commercial business | 726,073 | 6,164 | 21,514 | 104 | 753,855 | ||||||||||||||
Trade finance | 136,197 | 7,976 | 6,199 | — | 150,372 | ||||||||||||||
Consumer and other | 26,801 | 13 | 1,006 | — | 27,820 | ||||||||||||||
Subtotal | $ | 3,236,433 | $ | 25,279 | $ | 94,335 | $ | 474 | $ | 3,356,521 | |||||||||
Acquired Loans: | |||||||||||||||||||
Real estate—Residential | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Real estate—Commercial | |||||||||||||||||||
Retail | 225,982 | 6,469 | 17,331 | — | 249,782 | ||||||||||||||
Hotel & Motel | 105,032 | 16,150 | 13,215 | — | 134,397 | ||||||||||||||
Gas Station & Car Wash | 33,360 | 7,192 | 4,119 | — | 44,671 | ||||||||||||||
Mixed Use | 34,927 | 3,826 | 6,526 | — | 45,279 | ||||||||||||||
Industrial & Warehouse | 114,616 | 1,385 | 9,470 | — | 125,471 | ||||||||||||||
Other | 121,667 | 4,473 | 17,479 | — | 143,619 | ||||||||||||||
Real estate—Construction | 1,093 | — | 5,972 | — | 7,065 | ||||||||||||||
Commercial business | 119,026 | 14,057 | 34,047 | 571 | 167,701 | ||||||||||||||
Trade finance | 242 | 334 | 1,122 | — | 1,698 | ||||||||||||||
Consumer and other | 17,292 | 424 | 4,329 | 89 | 22,134 | ||||||||||||||
Subtotal | $ | 773,237 | $ | 54,310 | $ | 113,610 | $ | 660 | $ | 941,817 | |||||||||
Total | $ | 4,009,670 | $ | 79,589 | $ | 207,945 | $ | 1,134 | $ | 4,298,338 |
• | Changes in lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices; |
• | Changes in national and local economic and business conditions and developments, including the condition of various market segments; |
• | Changes in the nature and volume of the loan portfolio; |
• | Changes in the experience, ability and depth of lending management and staff; |
• | Changes in the trends of the volume and severity of past due loans, Classified Loans, nonaccrual loans, troubled debt restructurings and other loan modifications; |
• | Changes in the quality of our loan review system and the degree of oversight by the Directors; |
• | Changes in the value of underlying collateral for collateral-dependent loans; |
• | The existence and effect of any concentrations of credit and changes in the level of such concentrations; and |
• | The effect of external factors, such as competition and legal and regulatory requirements, on the level of estimated losses in our loan portfolio. |
As of March 31, 2013 | |||||||||||||||||||||||||||
Real estate - Residential | Real estate - Commercial | Real estate - Construction | Commercial business | Trade finance | Consumer and other | Total | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Impaired loans (Gross carrying value) | $ | — | $ | 67,882 | $ | 1,683 | $ | 24,263 | $ | 6,886 | $ | 1,318 | $ | 102,032 | |||||||||||||
Specific allowance | $ | — | $ | 11,476 | $ | — | $ | 3,499 | $ | 77 | $ | 10 | $ | 15,062 | |||||||||||||
Loss coverage ratio | — | % | 16.9 | % | — | % | 14.4 | % | 1.1 | % | 0.8 | % | 14.8 | % | |||||||||||||
Non-impaired loans | $ | 10,667 | $ | 3,227,096 | $ | 67,404 | $ | 919,597 | $ | 127,507 | $ | 47,563 | $ | 4,399,834 | |||||||||||||
General allowance | $ | 84 | $ | 41,119 | $ | 919 | $ | 13,832 | $ | 1,621 | $ | 631 | $ | 58,206 | |||||||||||||
Loss coverage ratio | 0.8 | % | 1.3 | % | 1.4 | % | 1.5 | % | 1.3 | % | 1.3 | % | 1.3 | % | |||||||||||||
Total loans | $ | 10,667 | $ | 3,294,978 | $ | 69,087 | $ | 943,860 | $ | 134,393 | $ | 48,881 | $ | 4,501,866 | |||||||||||||
Total allowance for loan losses | $ | 84 | $ | 52,595 | $ | 919 | $ | 17,331 | $ | 1,698 | $ | 641 | $ | 73,268 | |||||||||||||
Loss coverage ratio | 0.8 | % | 1.6 | % | 1.3 | % | 1.8 | % | 1.3 | % | 1.3 | % | 1.6 | % |
As of December 31, 2012 | |||||||||||||||||||||||||||
Real estate - Residential | Real estate - Commercial | Real estate - Construction | Commercial business | Trade finance | Consumer and other | Total | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Impaired loans (Gross carrying value) | $ | — | $ | 53,634 | $ | 1,710 | $ | 27,274 | $ | 6,199 | $ | 1,338 | $ | 90,155 | |||||||||||||
Specific allowance | $ | — | $ | 4,906 | $ | — | $ | 4,158 | $ | 96 | $ | — | $ | 9,160 | |||||||||||||
Loss coverage ratio | 0.0 | % | 9.1 | % | 0.0 | % | 15.2 | % | 1.5 | % | 0.0 | % | 10.2 | % | |||||||||||||
Non-impaired loans | $ | 9,247 | $ | 3,046,832 | $ | 63,335 | $ | 894,282 | $ | 145,871 | $ | 48,616 | $ | 4,208,183 | |||||||||||||
General allowance | $ | 74 | $ | 40,256 | $ | 986 | $ | 13,448 | $ | 2,256 | $ | 761 | $ | 57,781 | |||||||||||||
Loss coverage ratio | 0.8 | % | 1.3 | % | 1.6 | % | 1.5 | % | 1.5 | % | 1.6 | % | 1.4 | % | |||||||||||||
Total loans | $ | 9,247 | $ | 3,100,466 | $ | 65,045 | $ | 921,556 | $ | 152,070 | $ | 49,954 | $ | 4,298,338 | |||||||||||||
Total allowance for loan losses | $ | 74 | $ | 45,162 | $ | 986 | $ | 17,606 | $ | 2,352 | $ | 761 | $ | 66,941 | |||||||||||||
Loss coverage ratio | 0.8 | % | 1.5 | % | 1.5 | % | 1.9 | % | 1.5 | % | 1.5 | % | 1.6 | % |
As of March 31, 2013 | |||||||||||||||||||||||||||||||||||
TDRs on Accrual | TDRs on Nonaccrual | Total | |||||||||||||||||||||||||||||||||
Real estate - Commercial | Commercial Business | Other | Total | Real estate - Commercial | Commercial Business | Other | Total | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Payment concession | $ | 10,548 | $ | 2,785 | $ | — | $ | 13,333 | $ | 14,899 | $ | 3,319 | $ | 784 | $ | 19,002 | $ | 32,335 | |||||||||||||||||
Maturity / Amortization concession | 544 | 3,811 | 534 | 4,889 | 623 | 2,156 | 941 | 3,720 | 8,609 | ||||||||||||||||||||||||||
Rate concession | 12,829 | 1,198 | — | 14,027 | 9,482 | — | — | 9,482 | 23,509 | ||||||||||||||||||||||||||
Principal forgiveness | — | — | — | — | — | 59 | — | 59 | 59 | ||||||||||||||||||||||||||
$ | 23,921 | $ | 7,794 | $ | 534 | $ | 32,249 | $ | 25,004 | $ | 5,534 | $ | 1,725 | $ | 32,263 | $ | 64,512 |
As of December 31, 2012 | |||||||||||||||||||||||||||||||||||
TDRs on Accrual | TDRs on Nonaccrual | Total | |||||||||||||||||||||||||||||||||
Real estate - Commercial | Commercial Business | Other | Total | Real estate - Commercial | Commercial Business | Other | Total | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Payment concession | $ | 9,608 | $ | 687 | $ | — | $ | 10,295 | $ | 4,735 | $ | 4,618 | $ | 802 | $ | 10,155 | $ | 20,450 | |||||||||||||||||
Maturity / Amortization concession | 348 | 3,847 | 536 | 4,731 | 652 | 1,941 | 869 | 3,462 | 8,193 | ||||||||||||||||||||||||||
Rate concession | 13,594 | 1,229 | — | 14,823 | 7,923 | — | — | 7,923 | 22,746 | ||||||||||||||||||||||||||
Principal forgiveness | — | — | — | — | — | 62 | — | 62 | 62 | ||||||||||||||||||||||||||
$ | 23,550 | $ | 5,763 | $ | 536 | $ | 29,849 | $ | 13,310 | $ | 6,621 | $ | 1,671 | $ | 21,602 | $ | 51,451 |
Three Months Ended March 31, 2013 | ||||||||||
Number of Loans | Pre- Modification | Post- Modification | ||||||||
(Dollars in thousand) | ||||||||||
Legacy Loans: | ||||||||||
Real estate - Commercial | ||||||||||
Retail | 2 | $ | 712 | $ | 709 | |||||
Hotel & Motel | — | — | — | |||||||
Gas Station & Car Wash | 1 | 1,371 | 967 | |||||||
Mixed Use | — | — | — | |||||||
Industrial & Warehouse | 1 | 370 | 362 | |||||||
Other | — | — | — | |||||||
Real estate - Construction | — | — | — | |||||||
Commercial business | 3 | 1,156 | 1,155 | |||||||
Trade Finance | — | — | — | |||||||
Subtotal | 7 | $ | 3,609 | $ | 3,193 | |||||
Acquired Loans: | ||||||||||
Real estate - Commercial | ||||||||||
Retail | — | $ | — | $ | — | |||||
Hotel & Motel | — | — | — | |||||||
Gas Station & Car Wash | 1 | 165 | 171 | |||||||
Mixed Use | — | — | — | |||||||
Industrial & Warehouse | 1 | 10,248 | 10,273 | |||||||
Other | 1 | 980 | 980 | |||||||
Real estate - Construction | — | — | — | |||||||
Commercial business | 2 | 848 | 190 | |||||||
Trade Finance | — | — | — | |||||||
Subtotal | 5 | $ | 12,241 | $ | 11,614 | |||||
Total | 12 | $ | 15,850 | $ | 14,807 | |||||
Three Months Ended March 31, 2013 | ||||||
Number of Loans | Balance | |||||
(Dollars In thousands) | ||||||
Legacy Loans: | ||||||
Real estate - Commercial | ||||||
Retail | 1 | $ | 1,433 | |||
Gas Station & Car Wash | — | — | ||||
Industrial & Warehouse | — | — | ||||
Other | — | — | ||||
Commercial Business | 2 | 78 | ||||
Subtotal | 3 | $ | 1,511 | |||
Acquired Loans: | ||||||
Real estate - Commercial | ||||||
Retail | — | $ | — | |||
Gas Station & Car Wash | 1 | 171 | ||||
Hotel & Motel | — | — | ||||
Industrial & Warehouse | — | — | ||||
Other | — | — | ||||
Commercial Business | 2 | 1,098 | ||||
Subtotal | 3 | $ | 1,269 | |||
6 | $ | 2,780 |
March 31, 2013 | December 31, 2012 | ||||||
(In thousands) | |||||||
Covered loans on nonaccrual status | $ | 629 | $ | 489 | |||
Covered OREO | 738 | 393 | |||||
Total covered nonperforming assets | $ | 1,367 | $ | 882 | |||
Acquired covered loans | $ | 69,112 | $ | 72,528 |
8. | Borrowings |
Contractual Maturities | Maturity/ Put Date | ||||||
(In thousands) | |||||||
Due within one year | $ | 90,000 | $ | 141,632 | |||
Due after one year through five years | 331,632 | 280,000 | |||||
$ | 421,632 | $ | 421,632 |
9. | Subordinated Debentures |
Issuance Trust | Issuance Date | Trust Preferred Security Amount | Subordinated Debentures Amount | Rate Type | Initial Rate | Coupon Rate at March 31, 2013 | Maturity Date | |||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Nara Capital Trust III | 6/5/2003 | $ | 5,000 | $ | 5,155 | Variable | 4.44 | % | 3.43 | % | 6/15/2033 | |||||||||
Nara Statutory Trust IV | 12/22/2003 | 5,000 | 5,155 | Variable | 4.02 | % | 3.15 | % | 1/7/2034 | |||||||||||
Nara Statutory Trust V | 12/17/2003 | 10,000 | 10,310 | Variable | 4.12 | % | 3.23 | % | 12/17/2033 | |||||||||||
Nara Statutory Trust VI | 3/22/2007 | 8,000 | 8,248 | Variable | 7.00 | % | 1.93 | % | 6/15/2037 | |||||||||||
Center Capital Trust I | 12/30/2003 | 18,000 | 13,014 | Variable | 4.01 | % | 3.15 | % | (1) | 1/7/2034 | ||||||||||
PIB Trust I | 6/28/2005 | 4,000 | 4,114 | Variable | 5.23 | % | 2.03 | % | (2) | 9/15/2035 | ||||||||||
TOTAL ISSUANCE | $ | 50,000 | $ | 45,996 |
(1) | The Center Capital Trust I trust preferred security was assumed in the merger with Center Financial Corporation. The remaining discount was $5.5 million at March 31, 2013 and the effective rate of the security, including the effect of the discount accretion, was 6.03% at March 31, 2013. |
(2) | The PIB Trust I trust preferred security was assumed in the acquisition of PIB. The remaining discount was $10 thousand at March 31, 2013 and the effective rate of the security, including the effect of the discount accretion was 3.28% at March 31, 2013 |
10. | Derivative Financial Instruments and Hedging Activities |
Three Months Ended March 31, | |||||||||
2013 | 2012 | ||||||||
Location of Gain or (Loss) Recognized in Income on Derivatives | Amount of Gain or (Loss) Recognized in Income on Derivatives | ||||||||
(In thousands) | |||||||||
Derivatives not designated as hedging instruments under FASB ASC 815: | |||||||||
Interest rate contracts (1) | Other income | $ | — | $ | (8 | ) |
(1) | Includes amounts representing the net interest payments as stated in the contractual agreements and the valuation gains or (losses) on interest rate contracts not designated as hedging instruments. |
11. | Income Taxes |
12. | Fair Value Measurements |
Level 1: | Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. |
Level 2: | Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. |
Level 3: | Significant unobservable inputs that reflect estimates of assumptions that market participants would use in pricing the asset or liability. |
Fair Value Measurements at the End of the Reporting Period Using | |||||||||||||||
March 31, 2013 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(In thousands) | |||||||||||||||
Assets: | |||||||||||||||
Securities available for sale: | |||||||||||||||
GSE collateralized mortgage obligations | $ | 302,584 | $ | — | $ | 302,584 | $ | — | |||||||
GSE mortgage-backed securities | 389,726 | — | 389,726 | — | |||||||||||
Trust preferred securities | 3,932 | — | 3,932 | — | |||||||||||
Municipal bonds | 6,281 | — | 5,075 | 1,206 | |||||||||||
Mutual funds | 14,918 | 14,918 | — | — | |||||||||||
Fair Value Measurements at the End of the Reporting Period Using | |||||||||||||||
December 31, 2012 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(In thousands) | |||||||||||||||
Assets: | |||||||||||||||
Securities available for sale: | |||||||||||||||
GSE collateralized mortgage obligations | $ | 254,912 | $ | — | $ | 254,912 | $ | — | |||||||
GSE mortgage-backed securities | 425,540 | — | 425,540 | — | |||||||||||
Trust preferred securities | 3,837 | — | 3,837 | — | |||||||||||
Municipal bonds | 5,118 | — | 5,118 | — | |||||||||||
Mutual funds | 14,996 | 14,996 | — | — |
Securities Available for Sale Municipal Bonds | ||||
(in thousands) | ||||
Beginning Balance, January 1, 2013 | $ | — | ||
Purchases, issuances, and settlements | 1,200 | |||
Total gains or (losses) included in earnings | — | |||
Total gains or (losses) included in other comprehensive income | 6 | |||
Ending Balance, March 31, 2013 | $ | 1,206 |
Fair Value Measurements at the End of the Reporting Period Using | |||||||||||||||
March 31, 2013 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(In thousands) | |||||||||||||||
Assets: | |||||||||||||||
Impaired loans at fair value: | |||||||||||||||
Real estate loans | $ | 13,752 | $ | — | $ | 13,752 | $ | — | |||||||
Commercial business | 1,027 | — | 1,027 | — | |||||||||||
OREO | 477 | — | 477 | — |
Fair Value Measurements at the End of the Reporting Period Using | |||||||||||||||
December 31, 2012 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(In thousands) | |||||||||||||||
Assets: | |||||||||||||||
Impaired loans at fair value: | |||||||||||||||
Real estate loans | $ | 4,443 | $ | — | $ | 4,443 | $ | — | |||||||
Commercial business | 1,164 | — | 1,164 | — | |||||||||||
Loans held for sale, net | 803 | — | 803 | — | |||||||||||
OREO | 2,636 | — | 2,636 | — |
For the three months ended March 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Assets: | |||||||
Impaired loans at fair value: | |||||||
Real estate loans | $ | (7,584 | ) | $ | 1,603 | ||
Commercial business | 535 | (2,184 | ) | ||||
Loans held for sale, net | — | (668 | ) | ||||
OREO | (114 | ) | (329 | ) |
March 31, 2013 | |||||||||
Carrying Amount | Estimated Fair Value | Fair Value Measurement Using | |||||||
(In thousands) | |||||||||
Financial Assets: | |||||||||
Cash and cash equivalents | $ | 280,813 | $ | 280,813 | Level 1 | ||||
Loans held for sale | 48,941 | 55,380 | Level 2 | ||||||
Loans receivable—net | 4,426,778 | 4,872,847 | Level 3 | ||||||
FHLB stock | 24,308 | N/A | N/A | ||||||
FDIC loss share receivable | 4,386 | 4,386 | Level 3 | ||||||
Customers’ liabilities on acceptances | 12,200 | 12,200 | Level 2 | ||||||
Financial Liabilities: | |||||||||
Noninterest-bearing deposits | $ | 1,182,509 | $ | 1,182,509 | Level 2 | ||||
Saving and other interest bearing demand deposits | 1,461,596 | 1,461,596 | Level 2 | ||||||
Time deposits | 1,911,569 | 1,914,546 | Level 2 | ||||||
FHLB advances | 421,632 | 426,278 | Level 2 | ||||||
Subordinated debentures | 45,996 | 47,524 | Level 2 | ||||||
Bank’s liabilities on acceptances outstanding | 12,200 | 12,200 | Level 2 | ||||||
December 31, 2012 | |||||||||
Carrying Amount | Estimated Fair Value | Fair Value Measurement Using | |||||||
(In thousands) | |||||||||
Financial Assets: | |||||||||
Cash and cash equivalents | $ | 312,916 | $ | 312,916 | Level 1 | ||||
Loans held for sale | 51,635 | 57,856 | Level 2 | ||||||
Loans receivable—net | 4,229,311 | 4,591,685 | Level 3 | ||||||
FHLB stock | 22,495 | N/A | N/A | ||||||
FDIC loss share receivable | 5,797 | 5,797 | Level 3 | ||||||
Customers’ liabilities on acceptances | 10,493 | 10,493 | Level 2 | ||||||
Financial Liabilities: | |||||||||
Noninterest-bearing deposits | $ | 1,184,285 | $ | 1,184,285 | Level 2 | ||||
Saving and other interest bearing demand deposits | 1,428,990 | 1,428,990 | Level 2 | ||||||
Time deposits | 1,770,760 | 1,772,778 | Level 2 | ||||||
FHLB advances | 420,722 | 425,107 | Level 2 | ||||||
Subordinated debentures | 41,846 | 32,218 | Level 2 | ||||||
Bank’s liabilities on acceptances outstanding | 10,493 | 10,493 | Level 2 |
13. | Stockholders’ Equity and Regulatory Matters |
Actual | Required For Capital Adequacy Purposes | Required To Be Well Capitalized under Prompt Corrective Action Provisions | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
As of March 31, 2013 | ||||||||||||||||||||
Total capital (to risk-weighted assets): | ||||||||||||||||||||
Company | $ | 772,633 | 15.88 | % | $ | 389,134 | 8.00 | % | N/A | N/A | ||||||||||
Bank | $ | 760,006 | 15.64 | % | $ | 388,835 | 8.00 | % | $ | 486,044 | 10.00 | % | ||||||||
Tier I capital (to risk-weighted assets): | ||||||||||||||||||||
Company | $ | 711,574 | 14.63 | % | $ | 194,567 | 4.00 | % | N/A | N/A | ||||||||||
Bank | $ | 698,992 | 14.38 | % | $ | 194,418 | 4.00 | % | $ | 291,626 | 6.00 | % | ||||||||
Tier I capital (to average assets): | ||||||||||||||||||||
Company | $ | 711,574 | 12.64 | % | $ | 225,175 | 4.00 | % | N/A | N/A | ||||||||||
Bank | $ | 698,992 | 12.42 | % | $ | 225,152 | 4.00 | % | $ | 281,440 | 5.00 | % | ||||||||
Actual | Required For Capital Adequacy Purposes | Required To Be Well Capitalized under Prompt Corrective Action Provisions | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||
Total capital (to risk-weighted assets): | ||||||||||||||||||||
Company | $ | 746,396 | 16.16 | % | $ | 369,417 | 8.00 | % | N/A | N/A | ||||||||||
Bank | $ | 725,655 | 15.73 | % | $ | 369,134 | 8.00 | % | $ | 461,417 | 10.00 | % | ||||||||
Tier I capital (to risk-weighted assets): | ||||||||||||||||||||
Company | $ | 688,422 | 14.91 | % | $ | 184,708 | 4.00 | % | N/A | N/A | ||||||||||
Bank | $ | 667,725 | 14.47 | % | $ | 184,567 | 4.00 | % | $ | 276,850 | 6.00 | % | ||||||||
Tier I capital (to average assets): | ||||||||||||||||||||
Company | $ | 688,422 | 12.76 | % | $ | 215,861 | 4.00 | % | N/A | N/A | ||||||||||
Bank | $ | 667,725 | 12.38 | % | $ | 215,813 | 4.00 | % | $ | 269,767 | 5.00 | % |
14. | Subsequent Events |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
At or for the Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(Dollars in thousands, except share and per share data) | |||||||
Income Statement Data: | |||||||
Interest income | $ | 66,743 | $ | 68,555 | |||
Interest expense | 7,027 | 7,696 | |||||
Net interest income | 59,716 | 60,859 | |||||
Provision for loan losses | 7,506 | 2,600 | |||||
Net interest income after provision for loan losses | 52,210 | 58,259 | |||||
Non-interest income | 9,940 | 11,645 | |||||
Non-interest expense | 33,275 | 30,435 | |||||
Income before income tax provision | 28,875 | 39,469 | |||||
Income tax provision | 11,414 | 15,535 | |||||
Net income | $ | 17,461 | $ | 23,934 | |||
Dividends and discount accretion on preferred stock | $ | — | $ | (1,869 | ) | ||
Net income available to common stockholders | $ | 17,461 | $ | 22,065 | |||
Per Share Data: | |||||||
Earnings per common share - basic | $ | 0.22 | $ | — | |||
Earnings per common share - diluted | $ | 0.22 | $ | — | |||
Book value per common share (period end, excluding preferred stock and warrants) | $ | 9.79 | $ | 8.92 | |||
Cash dividends declared per common share | $ | .05 | $ | — | |||
Tangible book value per common share (period end, excluding preferred stock and warrants) (11) | $ | 8.57 | $ | 7.72 | |||
Number of common shares outstanding (period end) | 78,812,140 | 77,996,391 | |||||
Weighted average shares - basic | 78,389,434 | 77,987,342 | |||||
Weighted average shares - diluted | 78,480,671 | 78,101,818 | |||||
Tangible common equity ratio (9) | 11.77 | % | 11.86 | % | |||
Statement of Financial Condition Data - at Period End: | |||||||
Assets | $ | 5,833,597 | $ | 5,169,315 | |||
Securities available for sale | 717,441 | 697,808 | |||||
Gross loans, net of deferred loan fees and costs (excludes loans held for sale) | 4,500,046 | 3,737,199 | |||||
Deposits | 4,555,674 | 3,920,464 | |||||
FHLB advances | 421,632 | 332,109 | |||||
Subordinated debentures | 45,996 | 52,137 | |||||
Stockholders’ equity | 772,275 | 818,166 |
At or for the Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(Dollars in thousands) | |||||||
Average Balance Sheet Data: | |||||||
Assets | $ | 5,727,738 | $ | 5,139,396 | |||
Securities available for sale | 691,984 | 725,728 | |||||
Gross loans, including loans held for sale | 4,444,320 | 3,777,495 | |||||
Deposits | 4,447,970 | 3,903,661 | |||||
Stockholders’ equity | 765,230 | 806,384 | |||||
Selected Performance Ratios: | |||||||
Return on average assets (1) (8) | 1.22 | % | 1.86 | % | |||
Return on average stockholders’ equity (1) (8) | 9.13 | % | 11.87 | % | |||
Average stockholders' equity to average assets | 13.36 | % | 15.69 | % | |||
Return on average tangible equity (1) (8) (10) | 10.42 | % | 13.44 | % | |||
Dividend payout ratio (dividends per share / earnings per share) | 22.73 | % | — | % | |||
Pre-Tax Pre-Provision income to average assets (1) | 2.54 | % | 3.27 | % | |||
Efficiency ratio (2) | 47.77 | % | 41.98 | % | |||
Net interest spread | 4.26 | % | 4.83 | % | |||
Net interest margin (3) | 4.49 | % | 5.11 | % | |||
Regulatory Capital Ratios (4) | |||||||
Leverage capital ratio (5) | 12.64 | % | 15.08 | % | |||
Tier 1 risk-based capital ratio | 14.63 | % | 18.85 | % | |||
Total risk-based capital ratio | 15.88 | % | 20.11 | % | |||
Tier 1 common risk-based capital ratio (12) | 13.72 | % | 14.63 | % | |||
Asset Quality Ratios: | |||||||
Allowance for loan losses to gross loans, excluding loans held for sale | 1.63 | % | 1.67 | % | |||
Allowance for loan losses to nonaccrual loans | 173.34 | % | 156.03 | % | |||
Allowance for loan losses to nonperforming loans (6) | 76.21 | % | 75.91 | % | |||
Allowance for loan losses to nonperforming assets (7) | 70.07 | % | 71.03 | % | |||
Nonaccrual loans to gross loans, excluding loans held for sale | 0.94 | % | 1.06 | % | |||
Nonperforming loans to gross loans, excluding loans held for sale (6) | 2.14 | % | 2.19 | % | |||
Nonperforming assets to gross loans and OREO (7) | 2.32 | % | 2.34 | % | |||
Nonperforming assets to total assets (7) | 1.79 | % | 1.70 | % |
(1) | Annualized. |
(2) | Efficiency ratio is defined as non-interest expense divided by the sum of net interest income before provision for loan losses and non-interest income. |
(3) | Net interest margin is calculated by dividing annualized net interest income by average total interest-earning assets. |
(4) | The ratios required to meet the definition of a “well-capitalized” institution under certain banking regulations are 5% leverage capital, 6% tier I risk-based capital and 10% total risk-based capital. |
(5) | Calculations are based on average quarterly asset balances. |
(6) | Nonperforming loans include nonaccrual loans, loans past due 90 days or more and still accruing interest, and accruing restructured loans. Loans 90 days or more past due and still accruing consist of acquired loans that were originally recorded at fair value upon acquisitions. These loans are considered to be accruing as we can reasonably estimate future cash flows on acquired loans and we expect to fully collect the carrying value of these loans. |
(7) | Nonperforming assets include nonaccrual loans, loans past due 90 days or more and still accruing interest, OREO, and accruing restructured loans. |
(8) | Based on net income before effect of dividends and discount accretion on preferred stock. |
(9) | Excludes TARP preferred stock, net of discount, of $0 and $119.7 million and stock warrants of $378 thousand and $2.8 million at March 31, 2013 and 2012, respectively. |
(10) | Average tangible equity is calculated by subtracting average goodwill and average other intangibles 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. |
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
(Dollars in thousands) | ||||||||
Net income | $ | 17,461 | $ | 23,934 | ||||
Average stockholders' equity | $ | 765,230 | $ | 806,384 | ||||
Less: Average goodwill and other intangible assets, net | (95,021 | ) | (94,197 | ) | ||||
Average tangible equity | $ | 670,209 | $ | 712,187 | ||||
Net income (annualized) to average tangible equity | 10.42 | % | 13.44 | % |
(11) | Tangible book value per share is calculated by subtracting goodwill and other intangible assets from total stockholders' equity and dividing the difference by the number of shares of common stock outstanding. This is a non-GAAP measure that we believe provides investors with information that is useful in understanding our financial performance and position. |
March 31, 2013 | March 31, 2012 | |||||||
(In thousands) | ||||||||
Total stockholders' equity | $ | 772,275 | $ | 818,166 | ||||
Less: Preferred stock, net of discount | 0 | (119,694 | ) | |||||
Common stock warrant | (378 | ) | (2,760 | ) | ||||
Goodwill and other intangible assets, net | (96,805 | ) | (93,820 | ) | ||||
Tangible common equity | $ | 675,092 | $ | 601,892 | ||||
Common shares outstanding | 78,812,140 | 77,996,391 | ||||||
Tangible common equity per share | $ | 8.57 | $ | 7.72 |
(12) | Tier 1 common risk-based capital is calculated as Tier 1 capital less non-common elements, including perpetual preferred stock and related surplus, minority interest in subsidiaries, trust preferred securities and mandatory convertible preferred securities. |
March 31, 2013 | March 31, 2012 | |||||||
(In thousands) | ||||||||
Tier 1 capital | $ | 711,574 | $ | 759,784 | ||||
Less: Preferred stock, net of discount | 0 | (119,694 | ) | |||||
Trust preferred securities less unamortized acquisition discount | (44,447 | ) | (50,312 | ) | ||||
Tier 1 common risk-based capital | $ | 667,127 | $ | 589,778 | ||||
Total risk weighted assets less disallowed allowance for loan losses | 4,864,169 | 4,030,387 | ||||||
Tier 1 common risk-based capital ratio | 13.72 | % | 14.63 | % |
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
(Dollars in thousands) | ||||||||
Accretion of discounts on acquired performing loans | $ | 4,076 | $ | 6,887 | ||||
Accretion of discounts on acquired credit impaired loans | 1,522 | 2,757 | ||||||
Amortization of premiums on assumed FHLB advances | 91 | 1,231 | ||||||
Accretion of discounts on assumed subordinated debt | (43 | ) | (35 | ) | ||||
Amortization of premiums on assumed time deposits | 438 | 1,275 | ||||||
Increase to pre-tax income | $ | 6,084 | $ | 12,115 |
Three Months Ended March 31, | ||||||
2013 | 2012 | |||||
Net interest margin, excluding the effect of acquisition accounting adjustments | 3.97 | % | 4.04 | % | ||
Acquisition accounting adjustments(1) | 0.52 | 1.07 | ||||
Reported net interest margin | 4.49 | % | 5.11 | % | ||
(1) Acquisition accounting adjustments is calculated by subtracting net interest margin, excluding effect of acquisition accounting adjustments, from reported net interest margin. |
Three Months Ended March 31, | ||||||
2013 | 2012 | |||||
The weighted average yield on loans, excluding the effect of acquisition accounting adjustments | 5.15 | % | 5.61 | % | ||
Acquisition accounting adjustments(1) | 0.60 | 1.14 | ||||
Reported weighted average yield on loans | 5.75 | % | 6.75 | % | ||
(1) Acquisition accounting adjustments is calculated by subtracting the weighted average yield on loans, excluding the effect of acquisition accounting adjustments, from the reported weighted average yield on loans. |
Three Months Ended March 31, | ||||||
2013 | 2012 | |||||
The weighted average cost of deposits, excluding effect of acquisition accounting adjustments | 0.53 | % | 0.69 | % | ||
Acquisition accounting adjustments(1) | (0.04 | ) | (0.13 | ) | ||
Reported weighted average cost of deposits | 0.49 | % | 0.56 | % | ||
(1) Acquisition accounting adjustments is calculated by subtracting the weighted average cost of deposits, excluding the effect of acquisition accounting adjustments, from the reported weighted average cost of deposits. |
Three Months Ended March 31, | ||||||
2013 | 2012 | |||||
The weighted average cost on FHLB advances, excluding effect of acquisition accounting adjustments | 1.27 | % | 3.41 | % | ||
Acquisition accounting adjustments | (0.10 | ) | (1.49 | ) | ||
Reported weighted average cost on FHLB advances | 1.17 | % | 1.92 | % | ||
(1) Acquisition accounting adjustments is calculated by subtracting the weighted average cost on FHLB advances, excluding the effect of acquisition accounting adjustments, from reported weighted average cost on FHLB advances. |
Three Months Ended March 31, 2013 | Three Months Ended March 31, 2012 | ||||||||||||||||||||
Average Balance | Interest Income/ Expense | Average Yield/ Rate * | Average Balance | Interest Income/ Expense | Average Yield/ Rate * | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
INTEREST EARNINGS ASSETS: | |||||||||||||||||||||
Loans(1) (2) | $ | 4,444,313 | $ | 63,029 | 5.75 | % | $ | 3,777,495 | $ | 63,419 | 6.75 | % | |||||||||
Securities available for sale(3) | 691,984 | 3,427 | 1.98 | % | 725,728 | 4,909 | 2.71 | % | |||||||||||||
FRB and FHLB stock and other investments | 257,526 | 287 | 0.45 | % | 257,583 | 178 | 0.27 | % | |||||||||||||
Federal funds sold | — | — | N/A | 25,780 | 49 | 0.74 | % | ||||||||||||||
Total interest earning assets | $ | 5,393,823 | $ | 66,743 | 5.01 | % | $ | 4,786,586 | $ | 68,555 | 5.76 | % | |||||||||
INTEREST BEARING LIABILITIES: | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Demand, interest-bearing | $ | 1,265,967 | $ | 1,873 | 0.60 | % | $ | 1,232,763 | $ | 2,123 | 0.69 | % | |||||||||
Savings | 186,189 | 754 | 1.64 | % | 195,932 | 922 | 1.89 | % | |||||||||||||
Time deposits: | |||||||||||||||||||||
$100,000 or more | 1,161,322 | 1,730 | 0.60 | % | 767,171 | 1,411 | 0.74 | % | |||||||||||||
Other | 695,802 | 1,051 | 0.61 | % | 722,982 | 947 | 0.53 | % | |||||||||||||
Total time deposits | 1,857,124 | 2,781 | 0.61 | % | 1,490,153 | 2,358 | 0.64 | % | |||||||||||||
Total interest bearing deposits | 3,309,280 | 5,408 | 0.66 | % | 2,918,848 | 5,403 | 0.74 | % | |||||||||||||
FHLB advances | 422,944 | 1,224 | 1.17 | % | 339,964 | 1,626 | 1.92 | % | |||||||||||||
Other borrowings | 42,264 | 395 | 3.74 | % | 50,108 | 667 | 5.26 | % | |||||||||||||
Total interest bearing liabilities | 3,774,488 | $ | 7,027 | 0.75 | % | 3,308,920 | $ | 7,696 | 0.93 | % | |||||||||||
Non-interest bearing demand deposits | 1,138,690 | 984,813 | |||||||||||||||||||
Total funding liabilities / cost of funds | $ | 4,913,178 | 0.58 | % | $ | 4,293,733 | 0.72 | % | |||||||||||||
Net interest income/net interest spread | $ | 59,716 | 4.26 | % | $ | 60,859 | 4.83 | % | |||||||||||||
Net interest margin | 4.49 | % | 5.11 | % | |||||||||||||||||
Net interest margin, excluding the effect of nonaccrual loan income (expense)(4) | 4.47 | % | 5.14 | % | |||||||||||||||||
Net interest margin, excluding the effect of nonaccrual loan income (expense) and prepayment fee income(4) (5) | 4.46 | % | 5.13 | % | |||||||||||||||||
Cost of deposits: | |||||||||||||||||||||
Non-interest bearing demand deposits | $ | 1,138,690 | $ | — | $ | 984,813 | $ | — | |||||||||||||
Interest bearing deposits | 3,309,280 | 5,408 | 0.66 | % | 2,918,848 | 5,403 | 0.74 | % | |||||||||||||
Total deposits | $ | 4,447,970 | $ | 5,408 | 0.49 | % | $ | 3,903,661 | $ | 5,403 | 0.56 | % |
* | Annualized |
(1) | Interest income on loans includes loan fees. |
(2) | Average balances of loans are net of deferred loan fees and costs and include nonaccrual loans and loans held for sale. |
(3) | Interest income and yields are not presented on a tax-equivalent basis. |
(4) | Nonaccrual interest income recognized (reversed) was $236 thousand and ($349) thousand for the three months ended March 31, 2013 and 2012, respectively. |
(5) | Loan prepayment fee income excluded was $63 thousand and $116 thousand for the three months ended March 31, 2013 and 2012, respectively. |
Three months ended March 31, 2013 over March 31, 2012 | |||||||||||
Net Increase (Decrease) | |||||||||||
Change due to | |||||||||||
Rate | Volume | ||||||||||
(Dollars in thousands) | |||||||||||
INTEREST INCOME: | |||||||||||
Interest and fees on loans | $ | (390 | ) | $ | (10,237 | ) | $ | 9,847 | |||
Interest on securities | (1,482 | ) | (1,254 | ) | (228 | ) | |||||
Interest on FRB and FHLB stock and other investments | 109 | 106 | 3 | ||||||||
Interest on federal funds sold | (49 | ) | — | (49 | ) | ||||||
Total interest income | $ | (1,812 | ) | $ | (11,385 | ) | $ | 9,573 | |||
INTEREST EXPENSE: | |||||||||||
Interest on demand, interest bearing | $ | (250 | ) | $ | (293 | ) | $ | 43 | |||
Interest on savings | (168 | ) | (121 | ) | (47 | ) | |||||
Interest on time deposits | 423 | (114 | ) | 537 | |||||||
Interest on FHLB advances | (402 | ) | (732 | ) | 330 | ||||||
Interest on other borrowings | (272 | ) | (175 | ) | (97 | ) | |||||
Total interest expense | $ | (669 | ) | $ | (1,435 | ) | $ | 766 | |||
Net Interest Income | $ | (1,143 | ) | $ | (9,950 | ) | $ | 8,807 |
Three Months Ended March 31, | Increase (Decrease) | |||||||||||||
2013 | 2012 | Amount | % | |||||||||||
(Dollars in thousands) | ||||||||||||||
Service fees on deposit accounts | $ | 2,875 | $ | 3,160 | $ | (285 | ) | (9.0 | )% | |||||
International service fees | 1,238 | 1,224 | 14 | 1.1 | % | |||||||||
Loan servicing fees, net | 969 | 1,337 | (368 | ) | (27.5 | )% | ||||||||
Wire transfer fees | 816 | 741 | 75 | 10.1 | % | |||||||||
Other income and fees | 1,249 | 1,340 | (91 | ) | (6.8 | )% | ||||||||
Net gains on sales of SBA loans | 2,694 | 2,963 | (269 | ) | (9.1 | )% | ||||||||
Net losses on sales of other loans | 43 | — | 43 | — | % | |||||||||
Net gains on sales of securities available for sale | 54 | 816 | (762 | ) | (93.4 | )% | ||||||||
Net valuation gains (losses) on interest rate contracts | — | 3 | (3 | ) | 100.0 | % | ||||||||
Net gains on sales of OREO | 2 | 61 | (59 | ) | (96.7 | )% | ||||||||
Total non-interest income | $ | 9,940 | $ | 11,645 | $ | (1,705 | ) | (14.6 | )% |
Three Months Ended March 31, | Increase (Decrease) | |||||||||||||
2013 | 2012 | Amount | % | |||||||||||
(Dollars in thousands) | ||||||||||||||
Salaries and employee benefits | $ | 16,332 | $ | 14,079 | $ | 2,253 | 16.0 | % | ||||||
Occupancy | 4,011 | 3,646 | 365 | 10.0 | % | |||||||||
Furniture and equipment | 1,573 | 1,218 | 355 | 29.1 | % | |||||||||
Advertising and marketing | 1,273 | 1,458 | (185 | ) | (12.7 | )% | ||||||||
Data processing and communications | 1,644 | 1,611 | 33 | 2.0 | % | |||||||||
Professional fees | 1,301 | 613 | 688 | 112.2 | % | |||||||||
FDIC assessment | 694 | 1,037 | (343 | ) | (33.1 | )% | ||||||||
Credit related expenses | 1,715 | 2,180 | (465 | ) | (21.3 | )% | ||||||||
Merger and integration expenses | 1,305 | 1,773 | (468 | ) | (26.4 | )% | ||||||||
Other | 3,427 | 2,820 | 607 | 21.5 | % | |||||||||
Total non-interest expense | $ | 33,275 | $ | 30,435 | $ | 2,840 | 9.3 | % |
March 31, 2013 | December 31, 2012 | ||||||||||||
Amount | % | Amount | % | ||||||||||
(Dollars in thousands) | |||||||||||||
Loan portfolio composition | |||||||||||||
Real estate loans: | |||||||||||||
Residential | $ | 10,667 | 0 | % | $ | 9,247 | 0 | % | |||||
Commercial & industrial | 3,294,978 | 73 | % | 3,100,466 | 72 | % | |||||||
Construction | 69,087 | 2 | % | 65,045 | 2 | % | |||||||
Total real estate loans | 3,374,732 | 75 | % | 3,174,758 | 73 | % | |||||||
Commercial business | 943,860 | 21 | % | 921,556 | 21 | % | |||||||
Trade finance | 134,393 | 3 | % | 152,070 | 4 | % | |||||||
Consumer and other | 48,881 | 1 | % | 49,954 | 1 | % | |||||||
Total loans outstanding | 4,501,866 | 100 | % | 4,298,338 | 100 | % | |||||||
Less: deferred loan fees | (1,820 | ) | (2,086 | ) | |||||||||
Gross loans receivable | 4,500,046 | 4,296,252 | |||||||||||
Less: allowance for loan losses | (73,268 | ) | (66,941 | ) | |||||||||
Loans receivable, net | $ | 4,426,778 | $ | 4,229,311 |
March 31, 2013 | December 31, 2012 | ||||||
(Dollars in thousands) | |||||||
Loan commitments | $ | 710,762 | $ | 690,917 | |||
Standby letters of credit | 39,639 | 39,176 | |||||
Other commercial letters of credit | 60,623 | 51,257 | |||||
$ | 811,024 | $ | 781,350 |
March 31, 2013 | December 31, 2012 | ||||||
(Dollars in thousands) | |||||||
Nonaccrual loans (1) | $ | 42,269 | $ | 29,653 | |||
Loans 90 days or more days past due on accrual status (2) | 21,621 | 17,742 | |||||
Accruing restructured loans | 32,249 | 29,849 | |||||
Total Nonperforming Loans | 96,139 | 77,244 | |||||
OREO | 8,419 | 2,698 | |||||
Total Nonperforming Assets | $ | 104,558 | $ | 79,942 | |||
Nonperforming loans to total gross loans, excluding loans held for sale | 2.14 | % | 1.80 | % | |||
Nonperforming assets to gross loans plus OREO | 2.32 | % | 1.86 | % | |||
Nonperforming assets to total assets | 1.79 | % | 1.42 | % | |||
Allowance for loan losses to nonperforming loans (excludes delinquent loans 90 days or more on accrual status) | 98.32 | % | 112.50 | % | |||
Allowance for loan losses to nonperforming assets | 70.07 | % | 83.74 | % |
(1) | Nonaccrual loans exclude the guaranteed portion of delinquent SBA loans that are in liquidation totaling $18.6 million and $17.6 million as of March 31, 2013 and December 31, 2012, respectively. |
(2) | Loans 90 days or more past due on accrual status are acquired loans accounted for under ASC 310-30. |
Allocation of Allowance for Loan Losses | |||||||||||||
March 31, 2013 | December 31, 2012 | ||||||||||||
Amount of Allowance for Loan Losses | Percent of ALLL to Total ALLL | Amount of Allowance for Loan Losses | Percent of ALLL to Total ALLL | ||||||||||
(Dollars in thousands) | |||||||||||||
Loan Type | |||||||||||||
Real estate - Residential | $ | 84 | — | % | $ | 74 | — | % | |||||
Real estate - Commercial | 52,595 | 72 | % | 45,162 | 67 | % | |||||||
Real estate - Construction | 919 | 1 | % | 986 | 1 | % | |||||||
Commercial business | 17,331 | 24 | % | 17,606 | 26 | % | |||||||
Trade finance | 1,698 | 2 | % | 2,352 | 4 | % | |||||||
Consumer and other | 641 | 1 | % | 761 | 1 | % | |||||||
Total | $ | 73,268 | 100 | % | $ | 66,941 | 100 | % |
Acquired Loans(2) | ||||||||||||||||
Legacy Loans(1) | Credit Impaired Loans | Performing Loans | Total | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Balance, beginning of period | $ | 61,002 | $ | 4,534 | $ | 1,405 | $ | 66,941 | ||||||||
Provision for loan losses | 2,354 | — | 5,152 | 7,506 | ||||||||||||
Loans charged off | (1,121 | ) | — | (308 | ) | (1,429 | ) | |||||||||
Recoveries of charged offs | 232 | — | 18 | 250 | ||||||||||||
Balance, end of period | $ | 62,467 | $ | 4,534 | $ | 6,267 | $ | 73,268 | ||||||||
Gross loans, net of deferred loan fees and costs | $ | 3,520,819 | 169,826 | 811,221 | $ | 4,501,866 | ||||||||||
Loss coverage ratio | 1.77 | % | 2.67 | % | 0.77 | % | 1.63 | % | ||||||||
(1) Legacy Loans includes acquired loans that have been renewed or refinanced after being acquired. | ||||||||||||||||
(2) Acquired loans were marked to fair value at the acquisition date and provisions for loan losses reflect credit deterioration since the acquisition date. | ||||||||||||||||
At or for the Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(Dollars in thousands) | |||||||
LOANS | |||||||
Average gross loans receivable, including loans held for sale (net of deferred fees) | $ | 4,444,320 | $ | 3,777,495 | |||
Total gross loans receivables, excluding loans held for sale (net of deferred fees) | $ | 4,500,046 | $ | 3,737,199 | |||
ALLOWANCE: | |||||||
Balance-beginning of period | $ | 66,941 | $ | 61,952 | |||
Less: Loan charge-offs: | |||||||
Commercial & industrial real estate | (1,056 | ) | (1,934 | ) | |||
Commercial business loans | (307 | ) | (1,422 | ) | |||
Trade finance | (26 | ) | 0 | ||||
Consumer and other loans | (40 | ) | (26 | ) | |||
Total loans charged off | (1,429 | ) | (3,382 | ) | |||
Plus: Loan recoveries | |||||||
Commercial & industrial real estate | 42 | 323 | |||||
Commercial business loans | 183 | 792 | |||||
Consumer and other loans | 25 | 24 | |||||
Total loans recoveries | 250 | 1,139 | |||||
Net loan charge-offs | (1,179 | ) | (2,243 | ) | |||
Provision for loan losses | 7,506 | 2,600 | |||||
Balance-end of period | $ | 73,268 | $ | 62,309 | |||
Net loan charge-offs to average gross loans, including loans held for sale (net of deferred fees) * | 0.11 | % | 0.24 | % | |||
Allowance for loan losses to gross loans at end of period | 1.63 | % | 1.67 | % | |||
Net loan charge-offs to beginning allowance * | 7.05 | % | 14.48 | % | |||
Net loan charge-offs to provision for loan losses | 15.71 | % | 86.27 | % | |||
* Annualized |
Balance | % | |||||
(Dollars in thousands) | ||||||
Three months or less | $ | 753,687 | 39 | % | ||
Over three months through six months | 276,670 | 14 | % | |||
Over six months through nine months | 435,145 | 23 | % | |||
Over nine months through twelve months | 248,119 | 13 | % | |||
Over twelve months | 197,948 | 10 | % | |||
Total time deposits | $ | 1,911,569 | 100 | % |
As of March 31, 2013 (Dollars in thousands) | ||||||||||||||||||||
Actual | To Be Well-Capitalized | Excess | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
BBCN Bancorp, Inc | ||||||||||||||||||||
Total risk-based capital ratio | $ | 772,633 | 15.88 | % | N/A | N/A | ||||||||||||||
Tier 1 risk-based capital ratio | $ | 711,574 | 14.63 | % | N/A | N/A | ||||||||||||||
Tier 1 capital to total assets | $ | 711,574 | 12.64 | % | N/A | N/A | ||||||||||||||
BBCN Bank | ||||||||||||||||||||
Total risk-based capital ratio | $ | 760,006 | 15.64 | % | $ | 486,044 | 10.00 | % | $ | 273,962 | 5.64 | % | ||||||||
Tier 1 risk-based capital ratio | $ | 698,992 | 14.38 | % | $ | 291,626 | 6.00 | % | $ | 407,366 | 8.38 | % | ||||||||
Tier I capital to total assets | $ | 698,992 | 12.42 | % | $ | 281,440 | 5.00 | % | $ | 417,552 | 7.42 | % | ||||||||
As of December 31, 2012 (Dollars in thousands) | ||||||||||||||||||||
Actual | To Be Well-Capitalized | Excess | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
BBCN Bancorp, Inc | ||||||||||||||||||||
Total risk-based capital ratio | $ | 746,396 | 16.16 | % | N/A | N/A | ||||||||||||||
Tier 1 risk-based capital ratio | $ | 688,422 | 14.91 | % | N/A | N/A | ||||||||||||||
Tier 1 capital to total assets | $ | 688,422 | 12.76 | % | N/A | N/A | ||||||||||||||
BBCN Bank | ||||||||||||||||||||
Total risk-based capital ratio | $ | 725,655 | 15.73 | % | $ | 461,417 | 10.00 | % | $ | 264,238 | 5.73 | % | ||||||||
Tier 1 risk-based capital ratio | $ | 667,725 | 14.47 | % | $ | 276,850 | 6.00 | % | $ | 390,875 | 8.47 | % | ||||||||
Tier I capital to total assets | $ | 667,725 | 12.38 | % | $ | 269,767 | 5.00 | % | $ | 397,958 | 7.38 | % |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
March 31, 2013 | December 31, 2012 | ||||||||||
Simulated | Estimated Net Interest Income Sensitivity | Market Value Of Equity Volatility | Estimated Net Interest Income Sensitivity | Market Value Of Equity Volatility | |||||||
Rate Changes | |||||||||||
+ 200 basis points | 6.13 | % | (3.55 | )% | 5.31 | % | (2.24 | )% | |||
+ 100 basis points | 2.57 | % | (1.37 | )% | 2.51 | % | 1.01 | % | |||
- 100 basis points | (1.57 | )% | 0.42 | % | (3.78 | )% | 3.06 | % | |||
- 200 basis points | (1.94 | )% | 0.82 | % | (4.52 | )% | 4.68 | % |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
BBCN BANCORP, INC. | |||
Date: | May 8, 2013 | /s/ Kevin S. Kim | |
Kevin S. Kim | |||
Chariman, President and Chief Executive Officer | |||
Date: | May 8, 2013 | ||
/s/ Douglas J. Goddard | |||
Douglas J. Goddard | |||
Executive Vice President and Chief Financial Officer |
Exhibit Number | Description | |
3.1 | Certificate of Incorporation of the Company, filed with the Delaware Secretary of State on June 5, 2000 (incorporated herein by reference to the Registration Statement on Form S-4 filed with the Securities and Exchange Commission (“SEC”) on November 16, 2000) | |
3.2 | Certificate of Amendment of Certificate of Incorporation of the Company, filed with the Delaware Secretary of State on May 31, 2002 (incorporated herein by reference to the Registration Statement on Form S-8 Exhibit 3.3 filed with the SEC on February 5, 2003) | |
3.3 | Certificate of Amendment of Certificate of Incorporation of the Company, filed with the Delaware Secretary of State on June 1, 2004 (incorporated herein by reference to the Registration Statement on Form 10-Q Exhibit 3.1.1 filed with the SEC on November 8, 2004) | |
3.4 | Certificate of Amendment of Certificate of Incorporation of the Company, filed with the Delaware Secretary of State on November 2, 2005 (incorporated herein by reference to the Registration Statement on DEF14 A, Appendix B filed with the SEC on September 6, 2005) | |
3.5 | Certificate of Amendment of Certificate of Incorporation of the Company, filed with the Delaware Secretary of State on July 20, 2007 (incorporated herein by reference to the Registration Statement on DEF14 A, Appendix C filed with the SEC on April 19, 2007) | |
3.6 | Certificate of Merger, filed with the Delaware Secretary of State on November 30, 2011 (incorporated herein by reference to the Registration Statement on Form 10-Q Exhibit 3.6 filed with SEC on May 10, 2012) | |
3.7 | Amended and Restated Bylaws of BBCN Bancorp, Inc.* | |
10.1 | Definitive Agreement and Plan of Merger, dated as of October 22, 2012, between BBCN Bancorp, Inc. and Pacific International Bancorp, Inc | |
10.2 | CEO Employment Agreement between BBCN Bank and Soobong Min, dated April 30, 2013 and effective May 1, 2013* | |
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* | |
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* | |
32.1 | Certification of Chief Executive Officer pursuant to Section 906 of the Public Company Accounting Reform and Investor Protection Act of 2002* | |
32.2 | Certification of Chief Financial Officer pursuant to section 906 of the Public Company Accounting Reform and Investor Protection Act of 2002* | |
99.1 | Certification of Principal Executive Officer and Principal Financial Officer pursuant to the Interim Final Rule - TARP Standards for Compensation and Corporate Governance at 31 CFR Part 30* | |
101.INS | XBRL Instance Document** | |
101.SCH | XBRL Taxonomy Extension Schema Document** | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document** | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document** | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document** | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document** |
* | Filed herewith |
** | Furnished herewith |
1. | POSITION AND RESPONSIBILITIES |
b. | Other Activities. Except upon the prior written consent of the |
c. | No Conflict. Executive represents and warrants that Executive’s execution |
d. | Regulatory Approvals. This Agreement shall be subject to the |
2. | COMPENSATION AND BENEFITS |
a. | Base Salary. In consideration of the services to be rendered under |
3. | AT-WILL EMPLOYMENT; TERMINATION BY COMPANY |
c. | Severance. Except in situations where the employment of Executive is |
4. | OTHER TERMINATIONS BY COMPANY |
a. | Termination for Cause. For purpose of this Agreement, “For Cause” shall |
b. | By Death. Executive’s employment shall terminate automatically upon |
c. | By Disability. If Executive becomes eligible for the Company’s long-term |
5. | TERMINATION BY EXECUTIVE |
6. | TERMINATION OBLIGATIONS |
b. | Cooperation by Executive. Upon termination of Executive’s |
7. | PROPRIETARY INFORMATION ; PROHIBITION ON THIRD PARTY INFORMATION |
b. | Non-Solicitation. Executive acknowledges that, because of Executive’s |
c. | Non-Disclosure of Third Party Information. Executive represents, warrants |
8. | RECOUPMENT POLICY |
9. | ARBITRATION |
10. | AMENDMENTS; WAIVERS; REMEDIES |
11. | ASSIGNMENT; BINDING EFFECT |
12. | NOTICES |
Company’s Notice Address: | Executive’s Notice Address: |
BBCN Bank | Soobong Min |
3731 Wilshire Blvd., Suite 1000 | 5326 Godbey Drive |
Los Angeles, CA 90010 | La Canada, CA 91011 |
Attn: Legal Department | |
13. | SEVERABILITY |
14. | TAXES |
15. | GOVERNING LAW |
16. | COMPLIANCE WITH SAFETY AND SOUNDNESS STANDARDS |
17. | INTERPRETATION |
18. | OBLIGATIONS SURVIVE TERMINATION OF EMPLOYMENT |
19. | COUNTERPARTS |
20. | AUTHORITY |
21. | ENTIRE AGREEMENT |
22. | EXECUTIVE ACKNOWLEDGEMENT |
By: | /s/ Kevin S. Kim |
Kevin S. Kim | |
Title: | Chairman, BBCN Bank |
Date: | April 30, 2013 |
By: | /s/ Soobong Min |
Soobong Min | |
Date: | April 30, 2013 |
1. | I have reviewed this periodic report on Form 10-Q of BBCN Bancorp, Inc. |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrants' board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Dated: May 8, 2013 | /s/ Kevin S. Kim |
1. | I have reviewed this periodic report on Form 10-Q of BBCN Bancorp, Inc. |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrants' board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Bonita I. Lee |
Bonita I. Lee, Acting President & Chief Operating Officer (Principal Executive Officer) |
/s/ Philip E. Guldeman |
Philip E. Guldeman, EVP & Chief Financial Officer (Principal Financial Officer) |
Loans Receivable and Allowance for Loan Losses - Covered Loans (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Covered Nonperforming Assets | ||
Covered loans on non-accrual status | $ 629 | $ 489 |
Covered other real estate owned | 738 | 393 |
Total covered nonperforming assets | 1,367 | 882 |
Acquired covered loans | $ 69,112 | $ 72,528 |
Loans Receivable and Allowance for Loan Losses - Additional Information (Details) (USD $)
|
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, net | $ 4,426,778,000 | $ 4,229,311,000 |
Positive or Negative Qualitative Adjustment of the Loss Migration Ratio or Individual Specific Reserve Allocations, In Basis Points | 0.50% | |
Due from Related Parties | 7,500,000 | 11,100,000 |
Commitment to lend | 802,000 | 802,000 |
Pacific International Bancorp
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, net | $ 148,700,000 | $ 130,000,000 |
Loans Receivable and Allowance for Loan Losses - Schedule of Accounts, Notes, Loans and Financing Receivable (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2013
segment
|
Dec. 31, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
|
Real estate loans: | ||||
Loans | $ 4,501,866 | $ 4,298,338 | ||
Less: deferred loan fees | (1,820) | (2,086) | ||
Gross loans receivable | 4,500,046 | 4,296,252 | ||
Less: allowance for loan losses | (73,268) | (66,941) | (62,309) | (61,952) |
Loans receivable, net | 4,426,778 | 4,229,311 | ||
Number Of Portfolio Segments | 4 | |||
Real estate loans
|
||||
Real estate loans: | ||||
Loans | 3,374,732 | 3,174,758 | ||
Real estate loans | Residential
|
||||
Real estate loans: | ||||
Loans | 10,667 | 9,247 | ||
Real estate loans | Commercial & industrial
|
||||
Real estate loans: | ||||
Loans | 3,294,978 | 3,100,466 | ||
Real estate loans | Construction
|
||||
Real estate loans: | ||||
Loans | 69,087 | 65,045 | ||
Commercial business
|
||||
Real estate loans: | ||||
Loans | 943,860 | 921,556 | ||
Less: allowance for loan losses | (17,331) | (17,606) | ||
Trade Finance
|
||||
Real estate loans: | ||||
Loans | 134,393 | 152,070 | ||
Less: allowance for loan losses | (1,698) | (2,352) | ||
Consumer and other
|
||||
Real estate loans: | ||||
Loans | 48,881 | 49,954 | ||
Less: allowance for loan losses | $ (641) | $ (761) |
Stockholders’ Equity and Regulatory Matters (Tables)
|
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Mar. 31, 2013
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Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | The Company’s and the Bank’s actual capital amounts and ratios are presented in the table below:
|
Borrowings - Narrative (Details) (USD $)
|
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Debt Instrument [Line Items] | ||
Percent of assets | 30.00% | |
Maximum borrowing capacity | $ 1,500,000,000 | $ 1,300,000,000 |
Percent outstanding advances | 100.00% | |
Borrowings | 421,632,000 | 420,722,000 |
Weighted average interest rate | 1.12% | 1.24% |
Interest rate, range minimum | 0.25% | |
Interest rate, range maximum | 3.89% | |
Unused funds | 1,080,000,000 | |
Percent of qualifying assets | 95.00% | |
Mortgage Loans on Real Estate
|
||
Debt Instrument [Line Items] | ||
Pledged as collateral | 2,180,000,000 | 2,040,000,000 |
Securities Investment
|
||
Debt Instrument [Line Items] | ||
Amount outstanding | 0 | |
Qualifying Loans
|
||
Debt Instrument [Line Items] | ||
Asset balance used to determine maximum borrowing capacity from federal reserve bank | 509,300,000 | |
Putable
|
||
Debt Instrument [Line Items] | ||
Borrowings | $ 66,600,000 | $ 66,700,000 |
Stock-Based Compensation (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
|
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Activity Under the Plan | The following is a summary of stock option activity under the 2007 and 2006 Plans for the three months ended March 31, 2013:
|
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Summary of Restricted and Performance Unit Activity Under the Plan | The following is a summary of restricted and performance unit activity under the 2007 and 2006 Plans for the three months ended March 31, 2013:
|
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Estimated Annual Stock-Based Compensation Expense | The estimated annual stock-based compensation expense as of March 31, 2013 for each of the succeeding years is indicated in the table below:
|
Loans Receivable and Allowance for Loan Losses - Past Due Financing Receivables (Details) (USD $)
|
Mar. 31, 2013
|
Dec. 31, 2012
|
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | $ 23,726,000 | $ 8,379,000 | ||||||||||
60 - 89 Days Past Due | 6,259,000 | 17,184,000 | ||||||||||
Greater than 90 Days Past Due | 21,621,000 | 17,742,000 | ||||||||||
Total Past Due | 51,606,000 | 43,305,000 | ||||||||||
Non-accrual loans | 42,269,000 | 29,653,000 | [1] | |||||||||
Total Delinquent loans | 93,875,000 | 72,958,000 | ||||||||||
Guaranteed portion of delinquent SBA loans excluded from Nonaccrual loans | 18,600,000 | 17,600,000 | ||||||||||
Legacy
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 1,174,000 | 968,000 | ||||||||||
60 - 89 Days Past Due | 2,411,000 | 349,000 | ||||||||||
Greater than 90 Days Past Due | 0 | 0 | ||||||||||
Total Past Due | 3,585,000 | 1,317,000 | ||||||||||
Non-accrual loans | 17,574,000 | 18,540,000 | [1] | |||||||||
Total Delinquent loans | 21,159,000 | 19,857,000 | ||||||||||
Acquired
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 22,552,000 | [2] | 7,411,000 | [3],[4] | ||||||||
60 - 89 Days Past Due | 3,848,000 | [2] | 16,835,000 | [3],[4] | ||||||||
Greater than 90 Days Past Due | 21,621,000 | [2] | 17,742,000 | [3],[4] | ||||||||
Total Past Due | 48,021,000 | [2] | 41,988,000 | [3],[4] | ||||||||
Non-accrual loans | 24,695,000 | [2] | 11,113,000 | [1],[3],[4] | ||||||||
Total Delinquent loans | 72,716,000 | [2] | 53,101,000 | [3],[4] | ||||||||
Acquired credit impaired loans | Acquired
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 20,200,000 | 7,000,000 | ||||||||||
60 - 89 Days Past Due | 3,800,000 | 12,100,000 | ||||||||||
Greater than 90 Days Past Due | 21,600,000 | 17,700,000 | ||||||||||
Real Estate | Real estate - Residential | Legacy
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 22,000 | 0 | ||||||||||
60 - 89 Days Past Due | 0 | 0 | ||||||||||
Greater than 90 Days Past Due | 0 | 0 | ||||||||||
Total Past Due | 22,000 | 0 | ||||||||||
Non-accrual loans | 0 | 0 | [1] | |||||||||
Total Delinquent loans | 22,000 | 0 | ||||||||||
Real Estate | Real estate - Residential | Acquired
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 0 | [2] | 0 | [3] | ||||||||
60 - 89 Days Past Due | 0 | [2] | 0 | [3] | ||||||||
Greater than 90 Days Past Due | 0 | [2] | 0 | [3] | ||||||||
Total Past Due | 0 | [2] | 0 | [3] | ||||||||
Non-accrual loans | 0 | [2] | 0 | [1],[3] | ||||||||
Total Delinquent loans | 0 | [2] | 0 | [3] | ||||||||
Real Estate | Real estate - Commercial | Legacy | Retail
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 0 | 87,000 | ||||||||||
60 - 89 Days Past Due | 2,272,000 | 0 | ||||||||||
Greater than 90 Days Past Due | 0 | 0 | ||||||||||
Total Past Due | 2,272,000 | 87,000 | ||||||||||
Non-accrual loans | 5,001,000 | 3,316,000 | [1] | |||||||||
Total Delinquent loans | 7,273,000 | 3,403,000 | ||||||||||
Real Estate | Real estate - Commercial | Legacy | Hotel & Motel
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 0 | 0 | ||||||||||
60 - 89 Days Past Due | 0 | 0 | ||||||||||
Greater than 90 Days Past Due | 0 | 0 | ||||||||||
Total Past Due | 0 | 0 | ||||||||||
Non-accrual loans | 195,000 | 437,000 | [1] | |||||||||
Total Delinquent loans | 195,000 | 437,000 | ||||||||||
Real Estate | Real estate - Commercial | Legacy | Gas Station & Car Wash
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 355,000 | 359,000 | ||||||||||
60 - 89 Days Past Due | 0 | 0 | ||||||||||
Greater than 90 Days Past Due | 0 | 0 | ||||||||||
Total Past Due | 355,000 | 359,000 | ||||||||||
Non-accrual loans | 2,696,000 | 2,848,000 | [1] | |||||||||
Total Delinquent loans | 3,051,000 | 3,207,000 | ||||||||||
Real Estate | Real estate - Commercial | Legacy | Mixed Use
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 0 | 34,000 | ||||||||||
60 - 89 Days Past Due | 0 | 0 | ||||||||||
Greater than 90 Days Past Due | 0 | 0 | ||||||||||
Total Past Due | 0 | 34,000 | ||||||||||
Non-accrual loans | 1,018,000 | 1,799,000 | [1] | |||||||||
Total Delinquent loans | 1,018,000 | 1,833,000 | ||||||||||
Real Estate | Real estate - Commercial | Legacy | Industrial & Warehouse
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 221,000 | 0 | ||||||||||
60 - 89 Days Past Due | 0 | 0 | ||||||||||
Greater than 90 Days Past Due | 0 | 0 | ||||||||||
Total Past Due | 221,000 | 0 | ||||||||||
Non-accrual loans | 1,807,000 | 1,950,000 | [1] | |||||||||
Total Delinquent loans | 2,028,000 | 1,950,000 | ||||||||||
Real Estate | Real estate - Commercial | Legacy | Other
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 0 | 0 | ||||||||||
60 - 89 Days Past Due | 0 | 115,000 | ||||||||||
Greater than 90 Days Past Due | 0 | 0 | ||||||||||
Total Past Due | 0 | 115,000 | ||||||||||
Non-accrual loans | 1,944,000 | 2,379,000 | [1] | |||||||||
Total Delinquent loans | 1,944,000 | 2,494,000 | ||||||||||
Real Estate | Real estate - Commercial | Acquired | Retail
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 2,447,000 | [2] | 1,126,000 | [3] | ||||||||
60 - 89 Days Past Due | 0 | [2] | 6,604,000 | [3] | ||||||||
Greater than 90 Days Past Due | 1,574,000 | [2] | 1,190,000 | [3] | ||||||||
Total Past Due | 4,021,000 | [2] | 8,920,000 | [3] | ||||||||
Non-accrual loans | 60,000 | [2] | 0 | [1],[3] | ||||||||
Total Delinquent loans | 4,081,000 | [2] | 8,920,000 | [3] | ||||||||
Real Estate | Real estate - Commercial | Acquired | Hotel & Motel
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 4,339,000 | [2] | 1,522,000 | [3] | ||||||||
60 - 89 Days Past Due | 1,505,000 | [2] | 2,668,000 | [3] | ||||||||
Greater than 90 Days Past Due | 3,286,000 | [2] | 944,000 | [3] | ||||||||
Total Past Due | 9,130,000 | [2] | 5,134,000 | [3] | ||||||||
Non-accrual loans | 5,929,000 | [2] | 5,990,000 | [1],[3] | ||||||||
Total Delinquent loans | 15,059,000 | [2] | 11,124,000 | [3] | ||||||||
Real Estate | Real estate - Commercial | Acquired | Gas Station & Car Wash
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 3,725,000 | [2] | 2,218,000 | [3] | ||||||||
60 - 89 Days Past Due | 1,198,000 | [2] | 1,109,000 | [3] | ||||||||
Greater than 90 Days Past Due | 2,209,000 | [2] | 875,000 | [3] | ||||||||
Total Past Due | 7,132,000 | [2] | 4,202,000 | [3] | ||||||||
Non-accrual loans | 782,000 | [2] | 774,000 | [1],[3] | ||||||||
Total Delinquent loans | 7,914,000 | [2] | 4,976,000 | [3] | ||||||||
Real Estate | Real estate - Commercial | Acquired | Mixed Use
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 90,000 | [2] | 985,000 | [3] | ||||||||
60 - 89 Days Past Due | 0 | [2] | 1,918,000 | [3] | ||||||||
Greater than 90 Days Past Due | 244,000 | [2] | 1,507,000 | [3] | ||||||||
Total Past Due | 334,000 | [2] | 4,410,000 | [3] | ||||||||
Non-accrual loans | 0 | [2] | 0 | [1],[3] | ||||||||
Total Delinquent loans | 334,000 | [2] | 4,410,000 | [3] | ||||||||
Real Estate | Real estate - Commercial | Acquired | Industrial & Warehouse
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 243,000 | [2] | 53,000 | [3] | ||||||||
60 - 89 Days Past Due | 0 | [2] | 3,320,000 | [3] | ||||||||
Greater than 90 Days Past Due | 361,000 | [2] | 61,000 | [3] | ||||||||
Total Past Due | 604,000 | [2] | 3,434,000 | [3] | ||||||||
Non-accrual loans | 13,552,000 | [2] | 0 | [1],[3] | ||||||||
Total Delinquent loans | 14,156,000 | [2] | 3,434,000 | [3] | ||||||||
Real Estate | Real estate - Commercial | Acquired | Other
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 891,000 | [2] | 50,000 | [3] | ||||||||
60 - 89 Days Past Due | 0 | [2] | 25,000 | [3] | ||||||||
Greater than 90 Days Past Due | 3,995,000 | [2] | 5,542,000 | [3] | ||||||||
Total Past Due | 4,886,000 | [2] | 5,617,000 | [3] | ||||||||
Non-accrual loans | 767,000 | [2] | 937,000 | [1],[3] | ||||||||
Total Delinquent loans | 5,653,000 | [2] | 6,554,000 | [3] | ||||||||
Real Estate | Real estate - Construction | Legacy
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 0 | 0 | ||||||||||
60 - 89 Days Past Due | 0 | 0 | ||||||||||
Greater than 90 Days Past Due | 0 | 0 | ||||||||||
Total Past Due | 0 | 0 | ||||||||||
Non-accrual loans | 0 | 0 | [1] | |||||||||
Total Delinquent loans | 0 | 0 | ||||||||||
Real Estate | Real estate - Construction | Acquired
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 0 | [2] | 0 | [3] | ||||||||
60 - 89 Days Past Due | 0 | [2] | 0 | [3] | ||||||||
Greater than 90 Days Past Due | 6,167,000 | [2] | 5,972,000 | [3] | ||||||||
Total Past Due | 6,167,000 | [2] | 5,972,000 | [3] | ||||||||
Non-accrual loans | 0 | [2] | 0 | [1],[3] | ||||||||
Total Delinquent loans | 6,167,000 | [2] | 5,972,000 | [3] | ||||||||
Commercial Business | Legacy
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 553,000 | 298,000 | ||||||||||
60 - 89 Days Past Due | 139,000 | 234,000 | ||||||||||
Greater than 90 Days Past Due | 0 | 0 | ||||||||||
Total Past Due | 692,000 | 532,000 | ||||||||||
Non-accrual loans | 3,972,000 | 4,942,000 | [1] | |||||||||
Total Delinquent loans | 4,664,000 | 5,474,000 | ||||||||||
Commercial Business | Acquired
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 10,361,000 | [2] | 1,359,000 | [3] | ||||||||
60 - 89 Days Past Due | 806,000 | [2] | 1,174,000 | [3] | ||||||||
Greater than 90 Days Past Due | 3,346,000 | [2] | 1,236,000 | [3] | ||||||||
Total Past Due | 14,513,000 | [2] | 3,769,000 | [3] | ||||||||
Non-accrual loans | 2,678,000 | [2] | 2,442,000 | [1],[3] | ||||||||
Total Delinquent loans | 17,191,000 | [2] | 6,211,000 | [3] | ||||||||
Trade Finance | Legacy
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 0 | 0 | ||||||||||
60 - 89 Days Past Due | 0 | 0 | ||||||||||
Greater than 90 Days Past Due | 0 | 0 | ||||||||||
Total Past Due | 0 | 0 | ||||||||||
Non-accrual loans | 941,000 | 869,000 | [1] | |||||||||
Total Delinquent loans | 941,000 | 869,000 | ||||||||||
Trade Finance | Acquired
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 58,000 | [2] | 0 | [3] | ||||||||
60 - 89 Days Past Due | 68,000 | [2] | 0 | [3] | ||||||||
Greater than 90 Days Past Due | 0 | [2] | 0 | [3] | ||||||||
Total Past Due | 126,000 | [2] | 0 | [3] | ||||||||
Non-accrual loans | 0 | [2] | 0 | [1],[3] | ||||||||
Total Delinquent loans | 126,000 | [2] | 0 | [3] | ||||||||
Consumer and Other | Legacy
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 23,000 | 190,000 | ||||||||||
60 - 89 Days Past Due | 0 | 0 | ||||||||||
Greater than 90 Days Past Due | 0 | 0 | ||||||||||
Total Past Due | 23,000 | 190,000 | ||||||||||
Non-accrual loans | 0 | 0 | [1] | |||||||||
Total Delinquent loans | 23,000 | 190,000 | ||||||||||
Consumer and Other | Acquired
|
||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
30 - 59 Days Past Due | 398,000 | [2] | 98,000 | [3] | ||||||||
60 - 89 Days Past Due | 271,000 | [2] | 17,000 | [3] | ||||||||
Greater than 90 Days Past Due | 439,000 | [2] | 415,000 | [3] | ||||||||
Total Past Due | 1,108,000 | [2] | 530,000 | [3] | ||||||||
Non-accrual loans | 927,000 | [2] | 970,000 | [1],[3] | ||||||||
Total Delinquent loans | $ 2,035,000 | [2] | $ 1,500,000 | [3] | ||||||||
|
Stock-Based Compensation - Plan Description (Details)
|
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares available for grant (in shares) | 2,649,025 |
Minimum
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Purchase price of common stock, percent (in hundredths) | 100.00% |
Restricted stock, performance shares and performance units | Minimum
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Stock, Restriction Period | 1 year |
Time based vesting of grants | Maximum
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Stock, Restriction Period | 3 years |
BBCN 2007 Plan | Minimum
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Purchase price of common stock, percent (in hundredths) | 100.00% |
BBCN 2007 Plan | Stock options and stock appreciation rights
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Contractual term | 10 years |
BBCN 2007 Plan | Stock options and stock appreciation rights | Minimum
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period minimum | 3 years |
BBCN 2007 Plan | Stock options and stock appreciation rights | Maximum
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period minimum | 5 years |
2006 Plan
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Annual vesting percent | 20.00% |
2006 Plan | Nonemployee director
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Annual vesting percent | 33.33333% |
Option expiration duration | 10 years |
Loans Receivable and Allowance for Loan Losses - Allowance for Loans, by Portfolio Segment and Impairment Method (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
---|---|---|---|---|
Financing Receivable, Impaired [Line Items] | ||||
Positive or Negative Qualitative Adjustment of the Loss Migration Ratio or Individual Specific Reserve Allocations, In Basis Points | 0.50% | |||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Impaired Financing Receivable, Gross Carrying Value | $ 102,032 | $ 90,155 | ||
Specific allowance | 15,062 | 9,160 | ||
Loss coverage ratio | 14.80% | 10.20% | ||
Non-impaired loans | 4,399,834 | 4,208,183 | ||
General allowance | 58,206 | 57,781 | ||
Loss coverage ratio | 1.30% | 1.40% | ||
Total loans outstanding | 4,501,866 | 4,298,338 | ||
Allowance for loan losses - Total | 73,268 | 66,941 | 62,309 | 61,952 |
Loss coverage ratio | 1.60% | 1.60% | ||
Real Estate
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Total loans outstanding | 3,374,732 | 3,174,758 | ||
Real Estate | Real estate - Residential
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Impaired Financing Receivable, Gross Carrying Value | 0 | 0 | ||
Specific allowance | 0 | 0 | ||
Loss coverage ratio | 0.00% | 0.00% | ||
Non-impaired loans | 10,667 | 9,247 | ||
General allowance | 84 | 74 | ||
Loss coverage ratio | 0.80% | 0.80% | ||
Total loans outstanding | 10,667 | 9,247 | ||
Allowance for loan losses - Total | 84 | 74 | ||
Loss coverage ratio | 0.80% | 0.80% | ||
Real Estate | Real estate - Commercial
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Impaired Financing Receivable, Gross Carrying Value | 67,882 | 53,634 | ||
Specific allowance | 11,476 | 4,906 | ||
Loss coverage ratio | 16.90% | 9.10% | ||
Non-impaired loans | 3,227,096 | 3,046,832 | ||
General allowance | 41,119 | 40,256 | ||
Loss coverage ratio | 1.30% | 1.30% | ||
Total loans outstanding | 3,294,978 | 3,100,466 | ||
Allowance for loan losses - Total | 52,595 | 45,162 | ||
Loss coverage ratio | 1.60% | 1.50% | ||
Real Estate | Real estate - Construction
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Impaired Financing Receivable, Gross Carrying Value | 1,683 | 1,710 | ||
Specific allowance | 0 | 0 | ||
Loss coverage ratio | 0.00% | 0.00% | ||
Non-impaired loans | 67,404 | 63,335 | ||
General allowance | 919 | 986 | ||
Loss coverage ratio | 1.40% | 1.60% | ||
Total loans outstanding | 69,087 | 65,045 | ||
Allowance for loan losses - Total | 919 | 986 | ||
Loss coverage ratio | 1.30% | 1.50% | ||
Commercial business
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Impaired Financing Receivable, Gross Carrying Value | 24,263 | 27,274 | ||
Specific allowance | 3,499 | 4,158 | ||
Loss coverage ratio | 14.40% | 15.20% | ||
Non-impaired loans | 919,597 | 894,282 | ||
General allowance | 13,832 | 13,448 | ||
Loss coverage ratio | 1.50% | 1.50% | ||
Total loans outstanding | 943,860 | 921,556 | ||
Allowance for loan losses - Total | 17,331 | 17,606 | ||
Loss coverage ratio | 1.80% | 1.90% | ||
Trade finance
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Impaired Financing Receivable, Gross Carrying Value | 6,886 | 6,199 | ||
Specific allowance | 77 | 96 | ||
Loss coverage ratio | 1.10% | 1.50% | ||
Non-impaired loans | 127,507 | 145,871 | ||
General allowance | 1,621 | 2,256 | ||
Loss coverage ratio | 1.30% | 1.50% | ||
Total loans outstanding | 134,393 | 152,070 | ||
Allowance for loan losses - Total | 1,698 | 2,352 | ||
Loss coverage ratio | 1.30% | 1.50% | ||
Consumer and Other
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Impaired Financing Receivable, Gross Carrying Value | 1,318 | 1,338 | ||
Specific allowance | 10 | 0 | ||
Loss coverage ratio | 0.80% | 0.00% | ||
Non-impaired loans | 47,563 | 48,616 | ||
General allowance | 631 | 761 | ||
Loss coverage ratio | 1.30% | 1.60% | ||
Total loans outstanding | 48,881 | 49,954 | ||
Allowance for loan losses - Total | 641 | 761 | ||
Loss coverage ratio | 1.30% | 1.50% | ||
Allowance Quantitative Allocation
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
General allowance | 19,400 | 20,600 | ||
Allowance Qualitative Allocation
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
General allowance | 34,300 | 32,600 | ||
Legacy
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Total loans outstanding | 3,520,819 | 3,356,521 | ||
Legacy | Real Estate
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Total loans outstanding | 2,586,297 | 2,424,474 | ||
Allowance for loan losses - Total | 43,709 | 41,505 | 35,809 | 39,040 |
Legacy | Real Estate | Real estate - Residential
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Total loans outstanding | 9,978 | 9,247 | ||
Legacy | Real Estate | Real estate - Construction
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Total loans outstanding | 60,916 | 57,980 | ||
Legacy | Commercial business
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Total loans outstanding | 772,839 | 753,855 | ||
Allowance for loan losses - Total | 16,522 | 16,490 | 21,591 | 20,681 |
Legacy | Trade finance
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Total loans outstanding | 133,902 | 150,372 | ||
Allowance for loan losses - Total | 1,698 | 2,349 | 1,823 | 1,786 |
Legacy | Consumer and Other
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Total loans outstanding | 27,781 | 27,820 | ||
Allowance for loan losses - Total | 538 | 658 | 1,010 | 445 |
Legacy | Allowance Quantitative Allocation
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
General allowance | 19,300 | 20,500 | ||
Acquired
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Specific allowance | 6,162 | 1,257 | ||
Total loans outstanding | 981,047 | 941,817 | ||
Acquired | Real Estate
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Total loans outstanding | 788,435 | 750,284 | ||
Allowance for loan losses - Total | 9,889 | 4,718 | 1,543 | 0 |
Acquired | Real Estate | Real estate - Residential
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Specific allowance | 0 | 0 | ||
Total loans outstanding | 689 | 0 | ||
Acquired | Real Estate | Real estate - Construction
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Specific allowance | 0 | 0 | ||
Total loans outstanding | 8,170 | 7,065 | ||
Acquired | Commercial business
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Specific allowance | 807 | 1,074 | ||
Total loans outstanding | 171,021 | 167,701 | ||
Allowance for loan losses - Total | 809 | 1,115 | 517 | 0 |
Acquired | Trade finance
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Specific allowance | 0 | 0 | ||
Total loans outstanding | 491 | 1,698 | ||
Allowance for loan losses - Total | 0 | 3 | 16 | 0 |
Acquired | Consumer and Other
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
Specific allowance | 0 | 0 | ||
Total loans outstanding | 21,100 | 22,134 | ||
Allowance for loan losses - Total | 103 | 103 | 0 | 0 |
Acquired | Allowance Quantitative Allocation
|
||||
Loans by Portfolio Segment and Impairment Method [Abstract] | ||||
General allowance | $ 100 | $ 100 |
Stockholders' Equity and Regulatory Matters - Discussion of Warrants (Details) (USD $)
In Millions, except Share data, unless otherwise specified |
0 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Feb. 15, 2013
Common Stock
|
Nov. 21, 2008
Common Stock
|
Jun. 27, 2012
Fixed Rate Cumulative Perpetual Preferred Stock, Series B
|
Jun. 27, 2012
Center Financial Corporation
Common Stock
|
Nov. 30, 2011
Center Financial Corporation
Common Stock
|
Mar. 31, 2013
Pacific International Bancorp
|
Nov. 21, 2008
Pacific International Bancorp
Common Stock
|
|
Class of Warrant or Right [Line Items] | |||||||
Number of securities called by warrants or rights | 18,045 | 127,785 | |||||
Exercise price of warrants or rights | 54.03 | ||||||
Term | 10 years | ||||||
Conversion factor per one share of acquiror | 0.7805 | ||||||
Number of securities due to merger | 337,480 | ||||||
Exercise price due to merger | 12.22 | ||||||
Stock redeemed | $ 55 |
Income Taxes (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Unrecognized tax benefits | $ 1,680 | $ 748 |
Interest accrued | 74 | 52 |
California Enterprise Zone Loan Interest Deduction [Member]
|
||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 220 | |
Settlement with Taxing Authority [Member]
|
||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ (971) |
Loans Receivable and Allowance for Loan Losses - Accretable Yield Movement Schedule on Acquired Credit Impaired Loans in Center Merger (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | $ 18,652 | $ 31,999 |
Additions due to acquisitions during the period | 4,945 | 0 |
Accretion | (3,446) | (3,561) |
Changes in expected cash flows | 3,259 | 1,350 |
Balance at end of period | $ 23,410 | $ 29,788 |
BBCN Bancorp, Inc.
|
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BBCN Bancorp, Inc. | BBCN Bancorp, Inc. BBCN Bancorp, Inc. ("BBCN Bancorp", on a parent-only basis, and the "Company" on a consolidated basis), headquartered in Los Angeles, California, is the holding company for BBCN Bank ("BBCN Bank" or the "Bank"). The Bank has branches in California, New York, New Jersey, Washington and Illinois, as well as loan production offices in the Atlanta, Dallas, Denver, Northern California and Seattle markets. The Company is a corporation organized under the laws of Delaware and a financial holding company and bank holding company registered under the Bank Holding Company Act of 1956, as amended. |
Fair Value Measurements - Assets and Liabilities Measured at Fair Value, Recurring (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
||||
---|---|---|---|---|---|---|
Assets: | ||||||
Securities available for sale | $ 717,441 | $ 704,403 | ||||
GSE collateralized mortgage obligations
|
||||||
Assets: | ||||||
Securities available for sale | 302,584 | [1] | 254,912 | [1] | ||
GSE mortgage-backed securities
|
||||||
Assets: | ||||||
Securities available for sale | 389,726 | [1] | 425,540 | [1] | ||
Trust preferred security
|
||||||
Assets: | ||||||
Securities available for sale | 3,932 | 3,837 | ||||
Municipal bonds
|
||||||
Assets: | ||||||
Securities available for sale | 6,281 | 5,118 | ||||
Mutual funds
|
||||||
Assets: | ||||||
Securities available for sale | 14,918 | 14,996 | ||||
Recurring basis | Estimate of Fair Value | GSE collateralized mortgage obligations
|
||||||
Assets: | ||||||
Securities available for sale | 302,584 | 254,912 | ||||
Recurring basis | Estimate of Fair Value | GSE mortgage-backed securities
|
||||||
Assets: | ||||||
Securities available for sale | 389,726 | 425,540 | ||||
Recurring basis | Estimate of Fair Value | Trust preferred security
|
||||||
Assets: | ||||||
Securities available for sale | 3,932 | 3,837 | ||||
Recurring basis | Estimate of Fair Value | Municipal bonds
|
||||||
Assets: | ||||||
Securities available for sale | 6,281 | 5,118 | ||||
Recurring basis | Estimate of Fair Value | Mutual funds
|
||||||
Assets: | ||||||
Securities available for sale | 14,918 | 14,996 | ||||
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | GSE collateralized mortgage obligations
|
||||||
Assets: | ||||||
Securities available for sale | 0 | 0 | ||||
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | GSE mortgage-backed securities
|
||||||
Assets: | ||||||
Securities available for sale | 0 | 0 | ||||
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Trust preferred security
|
||||||
Assets: | ||||||
Securities available for sale | 0 | 0 | ||||
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal bonds
|
||||||
Assets: | ||||||
Securities available for sale | 0 | 0 | ||||
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds
|
||||||
Assets: | ||||||
Securities available for sale | 14,918 | 14,996 | ||||
Recurring basis | Significant Other Observable Inputs (Level 2) | GSE collateralized mortgage obligations
|
||||||
Assets: | ||||||
Securities available for sale | 302,584 | 254,912 | ||||
Recurring basis | Significant Other Observable Inputs (Level 2) | GSE mortgage-backed securities
|
||||||
Assets: | ||||||
Securities available for sale | 389,726 | 425,540 | ||||
Recurring basis | Significant Other Observable Inputs (Level 2) | Trust preferred security
|
||||||
Assets: | ||||||
Securities available for sale | 3,932 | 3,837 | ||||
Recurring basis | Significant Other Observable Inputs (Level 2) | Municipal bonds
|
||||||
Assets: | ||||||
Securities available for sale | 5,075 | 5,118 | ||||
Recurring basis | Significant Other Observable Inputs (Level 2) | Mutual funds
|
||||||
Assets: | ||||||
Securities available for sale | 0 | 0 | ||||
Recurring basis | Significant Unobservable Inputs (Level 3) | GSE collateralized mortgage obligations
|
||||||
Assets: | ||||||
Securities available for sale | 0 | 0 | ||||
Recurring basis | Significant Unobservable Inputs (Level 3) | GSE mortgage-backed securities
|
||||||
Assets: | ||||||
Securities available for sale | 0 | 0 | ||||
Recurring basis | Significant Unobservable Inputs (Level 3) | Trust preferred security
|
||||||
Assets: | ||||||
Securities available for sale | 0 | 0 | ||||
Recurring basis | Significant Unobservable Inputs (Level 3) | Municipal bonds
|
||||||
Assets: | ||||||
Securities available for sale | 1,206 | 0 | ||||
Recurring basis | Significant Unobservable Inputs (Level 3) | Mutual funds
|
||||||
Assets: | ||||||
Securities available for sale | $ 0 | $ 0 | ||||
|