Q2 2013 Summary:
- Net income of $22.7 million, or $0.29 per diluted common share
- Total assets increased to $5.86 billion
- Gross loans total $4.52 billion, reflecting a 5% increase year-to-date
- New loan originations of $208 million largely offset by aggregate pay-offs and pay-downs of $190 million
- Total deposits increased to $4.58 billion, including a 2% increase in non-interest bearing demand deposits
- Net interest margin steady with preceding first quarter at 4.49%
LOS ANGELES, July 22, 2013 (GLOBE NEWSWIRE) -- BBCN Bancorp, Inc. (the "Company") (Nasdaq:BBCN), the holding company of BBCN Bank (the "Bank"), today reported net income available to common stockholders of $22.7 million, or $0.29 per diluted common share, for the second quarter of 2013. This reflects increases of 30% and 45%, respectively, over the net income available to common stockholders for the preceding 2013 first quarter and 2012 second quarter.
The Company also announced the receipt of all regulatory approvals for the previously announced acquisition of Chicago-based Foster Bankshares, Inc. BBCN anticipates completing the transaction in early August 2013, subject to the satisfaction of other customary closing conditions. Foster Bank, a wholly owned subsidiary of Foster Bankshares, is a state-chartered bank, operating eight branches in the Chicago metropolitan area and one branch in Annandale, Virginia.
"BBCN's 2013 second quarter financial results demonstrate the stability of our organization's operational performance and core earnings power," said Kevin S. Kim, Chairman and Chief Executive Officer of BBCN Bancorp, Inc. "Pre-tax pre-provision earnings to average assets improved sequentially to 2.60% on an annualized basis, and our net interest margin held steady at 4.49%.
"Quality loan growth remains challenging, given the high demand for fixed-rate commercial real estate loans at extremely competitive rates. We believe it is prudent to remain selective on fixed-rate loan growth in the current environment. Together with a couple of larger loans that funded after the close of the quarter, new loan originations came in lower than originally budgeted. This, however, gives us a solid start on loan growth for the third quarter. We look forward to completing the Foster transaction early next month, which will make BBCN the only Korean-American bank in the Midwest and significantly strengthen our national platform. The steady progress we continue to make gives us greater confidence in our ability to further enhance the value proposition for our customers, employees and shareholders," said Kim.
Financial Highlights
| (Dollars in thousands, except per share data) | Three Months Ended | ||
| 6/30/2013 | 3/31/2013 | 6/30/2012 | |
| Net income | $22,671 | $17,461 | $19,364 |
| Net income available to common stockholders | $22,671 | $17,461 | $15,593 |
| Diluted earnings per share | $0.29 | $0.22 | $0.20 |
| Net interest income | $62,103 | $59,716 | $59,502 |
| Net interest margin | 4.49% | 4.49% | 5.02% |
| Non-interest income | $10,618 | $9,940 | $10,222 |
| Non-interest expense | $34,429 | $33,275 | $31,077 |
| Net loans receivable | $4,446,447 | $4,426,778 | $3,809,033 |
| Deposits | $4,576,799 | $4,555,674 | $3,882,680 |
| Non-accrual loans (1) | $44,987 | $42,269 | $39,567 |
| ALLL to gross loans | 1.59% | 1.63% | 1.69% |
| ALLL to non-accrual loans (1) | 159.32% | 173.34% | 165.55% |
| ALLL to nonperforming assets (1) | 65.40% | 70.07% | 72.80% |
| Provision for loan losses | $800 | $7,506 | $7,182 |
| Net charge-offs | $2,393 | $1,179 | $3,986 |
| ROA (2) | 1.54% | 1.22% | 1.52% |
| ROE (2) | 11.58% | 9.13% | 9.40% |
| Efficiency ratio | 47.34% | 47.77% | 44.57% |
| (1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $21.0 million, $18.6 million and $16.1 million at the close of the 2013 second quarter, 2013 first quarter and 2012 second quarter, respectively. | |||
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(2) Based on net income before effects of dividends and discount accretion on preferred stock. |
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Operating Results for the Second Quarter of 2013
The comparability of BBCN's operating results with past performance is impacted by acquisition accounting adjustments related to the acquisitions of Center Financial Corporation effected November 30, 2011 and Pacific International Bancorp completed February 15, 2013. The Company believes the following supplemental information will be helpful in understanding past financial performance. Operating results for the three months ended June 30, 2013, March 31, 2013 and June 30, 2012 include the following pre-tax acquisition accounting adjustments related to mergers.
The increase (decrease) of major adjustments to pre-tax income is summarized below. The impact which these adjustments have to certain yields and costs are described in subsequent sections of this release.
| Three Months Ended | |||
|
June 30, 2013 |
March 31, 2013 |
June 30, 2012 |
|
| Accretion of discount on acquired performing loans | 6,637 | $4,076 | $6,010 |
| Accretion of discount on acquired credit impaired loans | 1,032 | 1,522 | 1,686 |
| Amortization of premium on acquired FHLB borrowings | 92 | 91 | 904 |
| Accretion of discount on acquired subordinated debt | (48) | (43) | (36) |
| Amortization of premium on acquired time deposits | 247 | 438 | 787 |
| Increase to pre-tax income | $7,960 | $6,084 | $9,351 |
In addition to the items listed above, acquisition accounting adjustments had the effect of reducing the yield on acquired securities portfolios.
Net Interest Income and Net Interest Margin. The following table summarizes the reported net interest income before provision for loan losses.
| Three Months Ended | |||||
|
6/30/2013 |
3/31/2013 |
% change |
6/30/2012 |
% change |
|
| Net interest income before provision for loan losses | $62,103 | $59,716 | 4% | $59,502 | 4% |
Second quarter 2013 net interest income before provision for loan losses increased 4% over the preceding first quarter and the prior-year second quarter, and is largely attributed to higher levels of interest income on loans as a result of positive loan growth.
The net interest margin (net interest income divided by average interest-earning assets) and the impact of acquisition accounting adjustments are summarized in the following table:
| Three Months Ended | |||||
| 6/30/2013 | 3/31/2013 | change | 6/30/2012 | change | |
| Net interest margin, excluding the effect of acquisition accounting adjustments | 3.86% | 3.97% | (0.11)% | 4.15% | (0.29)% |
| Acquisition accounting adjustments | 0.63 | 0.52 | 0.11 | 0.87 | (0.24) |
| Reported net interest margin | 4.49% | 4.49% | —% | 5.02% | (0.53)% |
The net interest margin for the 2013 second quarter equaled 4.49%, the same as for the preceding first quarter. On a core basis, excluding the effect of acquisition accounting adjustments, the net interest margin for the second quarter of 2013 decreased by 11 basis points from the preceding first quarter to 3.86%. The decline reflects a modest decline in the core weighted average yield on loans.
Compared with the prior-year period, net interest margin for the 2013 second quarter declined 53 basis points. Excluding the effect of acquisition accounting adjustments, the core net interest margin for the second quarter of 2013 declined 29 basis points from the 2012 second quarter, largely due to decreases in the weighted average yields on loans and investment securities.
The weighted average yield on loans and the impact of acquisition accounting adjustments are summarized in the following table:
| Three Months Ended | |||||
| 6/30/2013 | 3/31/2013 | change | 6/30/2012 | change | |
| The weighted average yield on loans, excluding the effect of acquisition accounting adjustments | 5.02% | 5.15% | (0.13)% | 5.59% | (0.57)% |
| Acquisition accounting adjustments | 0.76 | 0.60 | 0.16 | 0.94 | (0.18) |
| Reported weighted average yield on loans | 5.78% | 5.75% | 0.03% | 6.53% | (0.75)% |
The weighted average yield on loans for the 2013 second quarter increased 3 basis points from the preceding first quarter, but decreased 13 basis points on a core basis, excluding acquisition accounting adjustments. The weighted average yield on new loans originated during the 2013 second quarter was 4.71%, compared with 4.52% for the preceding first quarter.
Compared with the prior-year period, the weighted average yield on loans for the 2013 second quarter decreased 75 basis points and 57 basis points on a core basis, excluding acquisition accounting adjustments. The reductions reflect the year-over-year decline in the market rates.
The composition of fixed and variable rate loans and the associated weighted average contractual rate, excluding the effect of loan discount accretion, is summarized in the following table:
| 6/30/2013 | 3/31/2013 | change | 6/30/2012 | change | |
| Fixed rate loans | |||||
| As a percentage of total loans | 40% | 40% | —% | 38% | 2.00% |
| Weighted average contractual rate | 5.31% | 5.47% | (0.16)% | 6.25% | (0.94)% |
| Variable rate loans | |||||
| As a percentage of total loans | 60% | 60% | —% | 62% | (2.00)% |
| Weighted average contractual rate | 4.50% | 4.49% | 0.01% | 4.60% | (0.10)% |
The sequential decrease in the weighted average contractual rate for fixed rate loans for the 2013 second quarter reflects the highly competitive rate environment for fixed rate commercial real estate loans in the current interest rate environment.
The weighted average yield on securities available for sale is summarized in the following table:
| Three Months Ended | |||||
| 6/30/2013 | 3/31/2013 | change | 6/30/2012 | change | |
| Weighted average yield on securities available for sale | 2.00% | 1.98% | 0.02% | 2.45% | (0.45)% |
The weighted average yield on securities available for sale for the 2013 second quarter increased 2 basis points from the preceding first quarter, but declined 45 basis points from the year-ago second quarter.
The weighted average duration and average life of the securities available-for-sale are summarized in the following table:
| Three Months Ended | |||||
|
6/30/2013 |
3/31/2013 |
% change |
6/30/2012 |
% change |
|
| Weighted average duration of securities available for sale in years | 4.54 | 3.93 | 15.52% | 3.38 | 34.32% |
| Weighted average life of securities available for sale in years | 5.11 | 4.27 | 19.67% | 3.70 | 38.11% |
The weighted average cost of deposits and the impact of acquisition accounting adjustments are summarized in the following table:
| Three Months Ended | |||||
| 6/30/2013 | 3/31/2013 | change | 6/30/2012 | change | |
| The weighted average cost of deposits, excluding the effect of acquisition accounting adjustments | 0.51% | 0.53% | (0.02)% | 0.63% | (0.12)% |
| Acquisition accounting adjustments | (0.02) | (0.04) | 0.02 | (0.08) | 0.06 |
| Reported weighted average cost of deposits | 0.49% | 0.49% | —% | 0.55% | (0.06)% |
The weighted average cost of deposits for the 2013 second quarter was stable with the preceding first quarter, but declined 2 basis points on a core basis, excluding the amortization of premium on time deposits assumed in mergers.
Compared with the prior-year period, the weighted average cost of deposits for the 2013 second quarter improved 6 basis points, and improved 12 basis points on a core basis, excluding the effect of premium amortization on time deposits assumed in mergers.
The weighted average cost of FHLB advances and the impact of acquisition accounting adjustments are summarized in the following table:
| Three Months Ended | |||||
| 6/30/2013 | 3/31/2013 | change | 6/30/2012 | change | |
| The weighted average cost of FHLB advances, excluding the effect of acquisition accounting adjustments | 1.25% | 1.27% | (0.02)% | 3.08% | (1.83)% |
| Acquisition accounting adjustments | (0.09) | (0.10) | 0.01 | (1.13) | 1.04 |
| Reported weighted average cost of FHLB advances | 1.16% | 1.17% | (0.01)% | 1.95% | (0.79)% |
For the second quarter of 2013, the weighted average cost of FHLB advances declined by just 1 basis point, and 2 basis points on a core basis, excluding the effect of acquisition accounting adjustments. During the 2013 second quarter, the Company added $50.0 million in new FHLB borrowings at a weighted average rate of 0.71%, and the weighted average original maturity of these new borrowings was 4.00 years. These new borrowing replaced 50.0 million of FHLB borrowings, with a weighted average rate of 1.19%, which matured during the second quarter 2013.
Compared with the prior-year period, the weighted average cost of FHLB advances decreased 79 basis points, and declined 183 basis points on a core basis, excluding the effect of acquisition accounting adjustments. The decreases reflect the addition of $415.0 million in new FHLB borrowings at a weighted average rate of 0.59%, which rate is substantially lower than the weighted average rate of the remaining borrowings. The weighted average original maturity of the new borrowings was 2.10 years. In addition, a total of $364.0 million of FHLB borrowings, with a weighted average rate of 1.13%, matured over the past twelve months.
Non-interest Income. Total non-interest income for the 2013 second quarter amounted to $10.6 million, reflecting a 7% increase over the preceding first quarter and a 4% increase over the prior-year second quarter.
The various non-interest income items are summarized in the following table:
| (In thousands) | Three Months Ended | ||||
|
6/30/2013 |
3/31/2013 |
% change |
6/30/2012 |
% change |
|
| Service fees on deposit accounts | $2,922 | $2,875 | 2% | $3,269 | (11)% |
| Net gains on sales of SBA loans | 3,295 | 2,694 | 22% | 2,463 | 34% |
| Net gains on sale of other loans | 19 | 43 | (56)% | 146 | (87)% |
| Net gain on sales of securities available for sale | — | 54 | (100)% | — | —% |
| Net valuation gains on interest swaps and caps | — | — | —% | 10 | (100)% |
| Net gains (losses) on sales of OREO | (11) | 2 | (650)% | (8) | 38% |
| Other income and fees | 4,393 | 4,272 | 3% | 4,342 | 1% |
| Total non-interest income | $10,618 | $9,940 | 7% | $10,222 | 4% |
The increase in non-interest income is predominantly attributed to a higher net gain on sale of SBA loans totaling $3.3 million for the 2013 second quarter, when compared with the gains posted in the preceding and prior-year quarters. Net gains on sales of SBA loans totaled $3.3 million, $2.7 million and $2.5 million for the 2013 second quarter, 2013 first quarter and 2012 second quarter, respectively. During the 2013 second quarter, the Company sold $33.8 million in SBA loans to the secondary market.
Non-interest Expense. Total non-interest expense for the second quarter of 2013 amounted to $34.4 million, reflecting a 3% increase over the preceding first quarter and a 10% increase over the prior-year second quarter.
The various non-interest expense items are summarized in the following table:
| (In thousands) | Three Months Ended | |||||
|
6/30/2013 |
3/31/2013 |
% change |
6/30/2012 |
% change |
||
| Salaries and employee benefits | $16,219 | $16,332 | (1)% | $14,658 | 11% | |
| Occupancy | 4,835 | 4,011 | 21% | 4,232 | 14% | |
| Furniture and equipment | 1,613 | 1,573 | 3% | 1,468 | 10% | |
| Advertising and marketing | 1,190 | 1,273 | (7)% | 1,525 | (22)% | |
| Data processing and communications | 1,861 | 1,644 | 13% | 1,573 | 18% | |
| Professional fees | 1,443 | 1,301 | 11% | 1,069 | 35% | |
| FDIC assessment | 858 | 694 | 24% | 51 | 1,582% | |
| Merger and integration expenses | 385 | 1,305 | (70)% | 1,348 | (71)% | |
| Other | 6,025 | 5,142 | 17% | 5,153 | 17% | |
| Total non-interest expense | $34,429 | $33,275 | 3% | $31,077 | 11% | |
Salaries and benefits expense for the 2013 second quarter declined 1% when compared with the preceding first quarter. One-time management transition costs incurred during the first quarter was largely offset by a full quarter's impact in the increase in full-time equivalent employees (FTEs) as a result of the Pacific International transaction completed on February 15, 2013.
Compared with the prior-year second quarter, salaries and benefits expense for the 2013 second quarter rose 11%. The number of FTEs was 749, 762, and 653 as of June 30, 2013, March 31, 2013, and June 30, 2012, respectively.
Operating results were impacted by merger and integration related expenses, which totaled $385,000, $1.3 million and $1.3 million, for the 2013 second quarter, 2013 first quarter and 2012 second quarter, respectively. Merger and integration related expenses for the 2013 second quarter included expenses associated with the integration of Pacific International Bancorp and the pending acquisition of Foster Bankshares, Inc.
Income Tax Provision. The effective tax rate for the 2013 second quarter was 39.5%, compared with 39.5% for preceding first quarter and 38.5% for the 2012 second quarter.
Balance Sheet Summary
Gross loans receivable totaled $4.52 billion at June 30, 2013, a slight increase over $4.50 billion at March 31, 2013 and an increase of 17% over $3.87 billion a year earlier at June 30, 2012. Total new loan originations during the second quarter of 2013 amounted to $208.0 million, including SBA loan originations of $42.7 million.
Sales of SBA loans to the secondary market and gains derived from those sales are based substantially on the production of SBA 7(a) loans. Production of SBA 7(a) loans amounted to $32.3 million for the second quarter of 2013, compared with $31.7 million for the preceding first quarter. During the 2013 second quarter, the Company sold $33.8 million of its SBA loans held for sale.
Aggregate loan pay-offs, pay-downs, amortization and other adjustments for the 2013 second quarter totaled $189.9 million, up considerably when compared with $147.6 million for the preceding first quarter and $104.1 million for the year-ago second quarter.
Total deposits amounted to $4.58 billion at June 30, 2013, compared with $4.56 billion at March 31, 2013 and $3.88 billion a year earlier at June 30, 2012. The increase over the preceding first quarter reflects higher balances in non-interest bearing demand deposits and jumbo time deposits. Non-interest bearing deposits at June 30, 2013 totaled $1.21 billion and accounted for 26% of total deposits.
Credit Quality
The provision for loan losses for the 2013 second quarter was $800,000, compared with $7.5 million for the preceding first quarter and $7.2 million for prior-year second quarter.
For a more detailed understanding of the changes in the Allowance for Loan and Lease Losses ("ALLL"), the composition of the ALLL has been segmented for disclosure purposes between loans accounted for under the amortized cost method (referred to as "Legacy Loans") and loans acquired in mergers and acquisitions (referred to as "Acquired Loans"). The Acquired Loans are further segregated between performing and credit impaired loans.
The composition of ALLL for the three months ended June 30, 2013, March 31, 2013 and June 30, 2012 is as follows:
| (dollars in thousands) | 6/30/2013 | 3/31/2013 | 6/30/2012 |
| Legacy Loans (1) | $61,316 | $62,469 | $62,397 |
| Acquired Loans - Performing Loans (2) | 5,825 | 6,265 | 1,194 |
| Acquired Loans - Credit Impaired Loans (2) | 4,534 | 4,534 | 1,914 |
| Total ALLL | $71,675 | $73,268 | $65,505 |
| Gross loans, net of deferred loan fees and costs | $4,518,122 | $4,500,046 | $3,874,538 |
| ALLL coverage ratio | 1.59% | 1.63% | 1.69% |
(1) Legacy Loans include loans originated by the Bank's predecessor bank, loans originated by BBCN, and loans that were acquired and that have been refinanced as new loans.
(2) Acquired Loans were marked to fair value at acquisition date, and their allowance for loan losses reflect provisions for credit deterioration since the acquisition date.
Following are the Special Mention, Classified and Total Criticized loan balances as of June 30, 2013, March 31, 2013 and June 30, 2012:
| (dollars in thousands) | 6/30/2013 | 3/31/2013 | 6/30/2012 |
| Special Mention (1) | $108,788 | $112,403 | $109,387 |
| Classified (1) | $220,677 | $229,354 | $204,709 |
| Total Criticized | $329,465 | $341,757 | $314,096 |
(1) Balances include Acquired Loans which were marked to fair value on the date of acquisition.
Nonperforming loans (defined by the Company as loans past due 90 days or more and on non-accrual status, acquired loans past due 90 days or more and on accrual status, and accruing restructured loans) at June 30, 2013 totaled $100.0 million, or 2.21% of total loans, a slight increase when compared with $96.1 million, or 2.14% of total loans, at March 31, 2013. Nonperforming assets at June 30, 2013 amounted to $109.6 million, or 1.87% of total assets, compared with $104.6 million, or 1.79% of total assets, at March 31, 2013.
Net loan charge-offs for the second quarter of 2013 totaled $2.4 million, or 0.21% of average loans on an annualized basis, compared with $1.2 million, or 0.11%, for the preceding first quarter.
The allowance for loan losses at June 30, 2013 was $71.7 million, or 1.59% of gross loans receivable (excluding loans held for sale), compared with $73.3 million, or 1.63%, at March 31, 2013. The coverage ratio of the allowance for loan losses to nonperforming loans (excluding acquired loans past due 90 days or more on accrual status) was 88.3% at June 30, 2013, compared with 98.3% at March 31, 2013.
Impaired loans (defined as loans for which it is probable that not all principal and interest payments due will be collectible in accordance with the contractual terms) decreased 4% to $98.2 million at June 30, 2013 from $102.0 at March 31, 2013.
Specific reserves for impaired loans at June 30, 2013 totaled $15.1 million, or 15.4% of the aggregate impaired loan amount, compared with $15.1 million, or 14.8% of the aggregate impaired loan amount, at March 31, 2013. Excluding specific reserves for impaired loans, the allowance coverage on the remaining loan portfolio was 1.28% at June 30, 2013, compared with 1.32% at March 31, 2013.
Capital
At June 30, 2013, the Company continued to exceed all regulatory capital requirements to be classified as a "well-capitalized" institution, as summarized in the following table.
| 6/30/2013 | 3/31/2013 | 6/30/2012 | |
| Leverage Ratio | 12.61% | 12.64% | 12.97% |
| Tier 1 Risk-based Ratio | 14.89% | 14.62% | 15.54% |
| Total Risk-based Ratio | 16.14% | 15.88% | 16.80% |
Tangible common equity per share and as a percentage of tangible assets continued to improve over prior comparable periods, as summarized in the following table:
| 6/30/2013 | 3/31/2013 | 6/30/2012 | |
| Tangible common equity per share (1) | $8.65 | $8.57 | $7.94 |
| Tangible common equity to tangible assets (1) | 11.88% | 11.77% | 12.49% |
(1) Tangible common equity to tangible assets is a non-GAAP financial measure that represents common equity less goodwill and net other intangible assets divided by total assets less goodwill and net other intangible assets. Management reviews tangible common equity to tangible assets in evaluating the Company's capital levels and has included this ratio in response to market participant interest in tangible common equity as a measure of capital. The accompanying financial information includes a reconciliation of the ratio of tangible common equity to tangible assets with stockholders' equity and total assets.
Investor Conference Call
The Company will host an investor conference call on Tuesday, July 23, 2013 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for the second quarter of 2013. Investors and analysts may access the conference call by dialing 800-299-9630 (domestic) or 617-786-2904 (international), passcode 57949239. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of BBCN Bancorp's website at BBCNbank.com.
After the live webcast, a replay will be archived in the Investor Relations section of BBCN Bancorp's website for one year. A telephonic replay of the call will be available at 888-286-8010 (domestic) or 617-801-6888 (international) through July 30, 2013, passcode 70185604.
About BBCN Bancorp, Inc.
BBCN Bancorp, Inc. is the holding company of BBCN Bank, the largest Korean-American bank in the nation with $5.9 billion in assets as of June 30, 2013. Headquartered in Los Angeles and serving a diverse mix of customers mirroring its communities, BBCN operates 45 branches in California, New York, New Jersey, Washington and Illinois, along with six loan production offices in Seattle, Denver, Dallas, Atlanta, Northern California and Annandale, Virginia. BBCN specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and business lending, SBA lending and international trade financing. BBCN Bank is a California-chartered bank and its deposits are insured by the FDIC to the extent provided by law. BBCN is an Equal Opportunity Lender.
Forward-Looking Statements
This press release contains forward-looking statements, including statements about future operations and projected full-year financial results that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward looking statements. These risks and uncertainties include but are not limited to economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services, and pricing. Readers should carefully review the risk factors and the information that could materially affect the Company's financial results and business, described in documents the Company files from time to time with the Securities and Exchange Commission, including its quarterly reports on Form 10-Q and Annual Reports on Form 10-K, and particularly the discussions of business considerations and certain factors that may affect results of operations and stock price set forth therein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements.
(tables follow)
| BBCN Bancorp, Inc. | ||||||||||
| Consolidated Statements of Financial Condition | ||||||||||
| Unaudited (Dollars in Thousands, Except per Share Data) | ||||||||||
| Assets | 6/30/2013 | 3/31/2013 | % change | 12/31/2012 | % change | 6/30/2012 | % change | |||
| Cash and due from banks | $ 296,330 | $ 280,813 | 6% | $ 312,916 | -5% | $ 179,621 | 65% | |||
| Securities available for sale, at fair value | 725,239 | 717,441 | 1% | 704,403 | 3% | 666,852 | 9% | |||
| Federal Home Loan Bank and Federal Reserve Bank stock | 26,261 | 24,308 | 8% | 22,495 | 17% | 24,778 | 6% | |||
| Loans held for sale, at the lower of cost or fair value | 43,111 | 48,941 | -12% | 51,635 | -17% | 32,590 | 32% | |||
| Loans receivable | 4,518,122 | 4,500,046 | 0% | 4,296,252 | 5% | 3,874,538 | 17% | |||
| Allowance for loan losses | (71,675) | (73,268) | 2% | (66,941) | -7% | (65,505) | 9% | |||
| Net loans receivable | 4,446,447 | 4,426,778 | 0% | 4,229,311 | 5% | 3,809,033 | 17% | |||
| Accrued interest receivable | 13,054 | 13,271 | -2% | 12,117 | 8% | 12,062 | 8% | |||
| Premises and equipment, net | 23,226 | 22,960 | 1% | 22,609 | 3% | 21,805 | 7% | |||
| Bank owned life insurance | 44,400 | 44,079 | 1% | 43,767 | 1% | 43,119 | 3% | |||
| Goodwill | 92,288 | 93,404 | -1% | 89,878 | 3% | 89,882 | 3% | |||
| Other intangible assets, net | 3,125 | 3,401 | -8% | 3,033 | 3% | 3,636 | -14% | |||
| Other assets | 149,533 | 158,201 | -5% | 148,497 | 1% | 166,027 | -10% | |||
| Total assets | $ 5,863,014 | $ 5,833,597 | 1% | $ 5,640,661 | 4% | $ 5,049,405 | 16% | |||
| Liabilities | ||||||||||
| Deposits | $ 4,576,799 | $ 4,555,674 | 0% | $ 4,384,035 | 4% | $ 3,882,680 | 18% | |||
| Borrowings from Federal Home Loan Bank | 421,539 | 421,632 | 0% | 420,722 | 0% | 371,143 | 14% | |||
| Subordinated debentures | 41,920 | 45,996 | -9% | 41,846 | 0% | 41,772 | 0% | |||
| Accrued interest payable | 4,499 | 4,325 | 4% | 4,355 | 3% | 5,924 | -24% | |||
| Other liabilities | 37,232 | 33,695 | 10% | 38,599 | -4% | 32,425 | 15% | |||
| Total liabilities | 5,081,989 | 5,061,322 | 0% | 4,889,557 | 4% | 4,333,944 | 17% | |||
| Stockholders' Equity | ||||||||||
| Common stock, $0.001 par value; authorized, 150,000,000 shares at June 30, 2013, December 31, 2012 and June 30, 2012; issued and outstanding, 79,205,840, 78,812,140, 78,041,511, and 78,014,107 at June 30, 2013, March , 31, 2013, December 31, 2012, and June 30, 2012, respectively | 79 | 79 | 0% | 78 | 1% | 78 | 1% | |||
| Capital surplus | 537,085 | 535,091 | 0% | 525,354 | 2% | 525,985 | 2% | |||
| Retained earnings | 248,866 | 230,149 | 8% | 216,590 | 15% | 180,567 | 38% | |||
| Accumulated other comprehensive income, net | (5,005) | 6,956 | -172% | 9,082 | -155% | 8,831 | -157% | |||
| Total stockholders' equity | 781,025 | 772,275 | 1% | 751,104 | 4% | 715,461 | 9% | |||
| Total liabilities and stockholders' equity | $ 5,863,014 | $ 5,833,597 | 1% | $ 5,640,661 | 4% | $ 5,049,405 | 16% | |||
| Three Months Ended | Six Months Ended | |||||||||
| 6/30/2013 | 3/31/2013 | % change | 6/30/2012 | % change | 6/30/2013 | 6/30/2012 | % change | |||
| Interest income: | ||||||||||
| Interest and fees on loans | $ 65,473 | $ 63,029 | 4% | $ 62,504 | 5% | $ 128,502 | $ 125,923 | 2% | ||
| Interest on securities | 3,526 | 3,427 | 3% | 4,249 | -17% | 6,953 | 9,158 | -24% | ||
| Interest on federal funds sold and other investments | 380 | 287 | 32% | 190 | 100% | 667 | 417 | 60% | ||
| Total interest income | 69,379 | 66,743 | 4% | 66,943 | 4% | 136,122 | 135,498 | 0% | ||
| Interest expense: | ||||||||||
| Interest on deposits | 5,647 | 5,408 | 4% | 5,245 | 8% | 11,055 | 10,648 | 4% | ||
| Interest on other borrowings | 1,629 | 1,619 | 1% | 2,196 | -26% | 3,248 | 4,489 | -28% | ||
| Total interest expense | 7,276 | 7,027 | 4% | 7,441 | -2% | 14,303 | 15,137 | -6% | ||
| Net interest income before provision for loan losses | 62,103 | 59,716 | 4% | 59,502 | 4% | 121,819 | 120,361 | 1% | ||
| Provision for loan losses | 800 | 7,506 | -89% | 7,182 | -89% | 8,306 | 9,782 | -15% | ||
| Net interest income after provision for loan losses | 61,303 | 52,210 | 17% | 52,320 | 17% | 113,513 | 110,579 | 3% | ||
| Non-interest income: | ||||||||||
| Service fees on deposit accounts | 2,922 | 2,875 | 2% | 3,269 | -11% | 5,797 | 6,429 | -10% | ||
| Net gains on sales of SBA loans | 3,295 | 2,694 | 22% | 2,463 | 34% | 5,989 | 5,426 | 10% | ||
| Net gains on sales of other loans | 19 | 43 | -56% | 146 | -87% | 62 | 146 | -58% | ||
| Net gains on sales of securities available-for-sale | -- | 54 | -100% | -- | 0% | 54 | 816 | -93% | ||
| Net valuation gains on interest swaps and caps | -- | -- | 0% | 10 | -100% | -- | 13 | -100% | ||
| Net gains(loss) on sales of OREO | (11) | 2 | -650% | (8) | 38% | (9) | 53 | -117% | ||
| Other income and fees | 4,393 | 4,272 | 3% | 4,342 | 1% | 8,665 | 8,984 | -4% | ||
| Total non-interest income | 10,618 | 9,940 | 7% | 10,222 | 4% | 20,558 | 21,867 | -6% | ||
| Non-interest expense: | ||||||||||
| Salaries and employee benefits | 16,219 | 16,332 | -1% | 14,658 | 11% | 32,551 | 28,737 | 13% | ||
| Occupancy | 4,835 | 4,011 | 21% | 4,232 | 14% | 8,846 | 7,878 | 12% | ||
| Furniture and equipment | 1,613 | 1,573 | 3% | 1,468 | 10% | 3,186 | 2,686 | 19% | ||
| Advertising and marketing | 1,190 | 1,273 | -7% | 1,525 | -22% | 2,463 | 2,983 | -17% | ||
| Data processing and communications | 1,861 | 1,644 | 13% | 1,573 | 18% | 3,505 | 3,184 | 10% | ||
| Professional fees | 1,443 | 1,301 | 11% | 1,069 | 35% | 2,744 | 1,682 | 63% | ||
| FDIC assessment | 858 | 694 | 24% | 51 | 1582% | 1,552 | 1,088 | 43% | ||
| Merger and integration expenses | 385 | 1,305 | -70% | 1,348 | -71% | 1,690 | 3,121 | -46% | ||
| Other | 6,025 | 5,142 | 17% | 5,153 | 17% | 11,167 | 10,153 | 10% | ||
| Total non-interest expense | 34,429 | 33,275 | 3% | 31,077 | 11% | 67,704 | 61,512 | 10% | ||
| Income before income taxes | 37,492 | 28,875 | 30% | 31,465 | 19% | 66,367 | 70,934 | -6% | ||
| Income tax provision | 14,821 | 11,414 | 30% | 12,101 | 22% | 26,235 | 27,636 | -5% | ||
| Net income | $ 22,671 | $ 17,461 | 30% | $ 19,364 | 17% | $ 40,132 | $ 43,298 | -7% | ||
| Dividends and discount accretion on preferred stock | $ -- | $ -- | 0% | $ (3,771) | -100% | $ -- | $ (5,640) | -100% | ||
| Net income available to common stockholders | $ 22,671 | $ 17,461 | 30% | $ 15,593 | 45% | $ 40,132 | $ 37,658 | 7% | ||
| Earnings Per Common Share: | ||||||||||
| Basic | $ 0.29 | $ 0.22 | $ 0.20 | $ 0.51 | $ 0.48 | |||||
| Diluted | $ 0.29 | $ 0.22 | $ 0.20 | $ 0.51 | $ 0.48 | |||||
| Average Shares Outstanding: | ||||||||||
| Basic | 79,062,233 | 78,389,434 | 78,007,270 | 78,746,444 | 77,997,305 | |||||
| Diluted | 79,236,732 | 78,480,671 | 78,141,527 | 79,000,811 | 78,121,259 | |||||
| Three months ended | Six Months Ended | |||||||||
| 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | 6/30/2012 | 6/30/2013 | 6/30/2012 | ||||
| Net Income | $ 22,671 | $ 17,461 | $ 21,527 | $ 18,398 | $ 19,364 | $ 40,132 | $ 43,298 | |||
| Add back: Income tax | 14,821 | 11,414 | 14,947 | 11,827 | 12,101 | 26,235 | 27,636 | |||
| Add back: Provision for loan losses | 800 | 7,506 | 2,422 | 6,900 | 7,182 | 8,306 | 9,782 | |||
| Pre-tax, pre-provision income (PTPP) 1 | $ 38,292 | $ 36,381 | $ 38,896 | $ 37,125 | $ 38,647 | $ 74,673 | $ 80,716 | |||
| PTPP to average assets (annualized) | 2.60% | 2.54% | 2.83% | 2.87% | 3.03% | 2.57% | 3.15% | |||
| 1 While pre-tax, pre-provision income is a non-GAAP performance measure, we believe it is a useful measure in analyzing underlying performance trends, particularly in times of economic stress. It is the level of earnings adjusted to exclude the impact of income tax and provision expense. | ||||||||||
|
(Annualized) At or for the Three Months Ended |
(Annualized) At or for the Six Months Ended |
|||||||||
| Profitability measures: | 6/30/2013 | 3/31/2013 | 6/30/2012 | 6/30/2013 | 6/30/2012 | |||||
| ROA 2 | 1.54% | 1.22% | 1.52% | 1.38% | 1.69% | |||||
| ROE 2 | 11.58% | 9.13% | 9.40% | 10.37% | 10.62% | |||||
| Return on average tangible equity 2,3 | 13.21% | 10.42% | 10.61% | 11.83% | 12.01% | |||||
| Net interest margin | 4.49% | 4.49% | 5.02% | 4.49% | 5.07% | |||||
| Efficiency ratio | 47.34% | 47.77% | 44.57% | 47.55% | 43.25% | |||||
| 2 based on net income before effect of dividends and discount accretion on preferred stock | ||||||||||
| 3 Average tangible equity is calculated by subtracting average goodwill and average other intangibles from average stockholders' equity. This is non-GAAP measure that we believe provides investors wth information that is useful in understanding our financial performance and position. | ||||||||||
| Three Months Ended | Three Months Ended | Three Months Ended | ||||||||
| 6/30/2013 | 3/31/2013 | 6/30/2012 | ||||||||
| Interest | Annualized | Interest | Annualized | Interest | Annualized | |||||
| Average | Income/ | Average | Average | Income/ | Average | Average | Income/ | Average | ||
| Balance | Expense | Yield/Cost | Balance | Expense | Yield/Cost | Balance | Expense | Yield/Cost | ||
| (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | ||||||||
| INTEREST EARNING ASSETS: | ||||||||||
| Gross loans, includes loans held for sale | $ 4,546,461 | $ 65,473 | 5.78% | $ 4,444,320 | $ 63,029 | 5.75% | $ 3,847,921 | $ 62,504 | 6.53% | |
| Securities available for sale | 705,479 | 3,526 | 2.00% | 691,984 | 3,427 | 1.98% | 692,399 | 4,249 | 2.45% | |
| FRB and FHLB stock and other investments | 296,788 | 380 | 0.51% | 257,526 | 287 | 0.45% | 203,935 | 160 | 0.31% | |
| Federal funds sold | -- | -- | 0.00% | -- | -- | 0.00% | 19,794 | 30 | 0.59% | |
| Total interest earning assets | $ 5,548,728 | $ 69,379 | 5.01% | $ 5,393,830 | $ 66,743 | 5.01% | $ 4,764,049 | $ 66,943 | 5.65% | |
| INTEREST BEARING LIABILITIES: | ||||||||||
| Deposits: | ||||||||||
| Demand, interest-bearing | $ 1,285,768 | $ 1,937 | 0.60% | $ 1,265,967 | $ 1,873 | 0.60% | $ 1,184,339 | $ 1,849 | 0.63% | |
| Savings | 185,584 | 721 | 1.56% | 186,189 | 754 | 1.64% | 187,872 | 830 | 1.78% | |
| Time deposits: | ||||||||||
| $100,000 or more | 1,252,934 | 1,975 | 0.63% | 1,161,322 | 1,730 | 0.60% | 807,803 | 1,498 | 0.75% | |
| Other | 652,766 | 1,013 | 0.62% | 695,802 | 1,052 | 0.61% | 652,937 | 1,068 | 0.66% | |
| Total time deposits | 1,905,700 | 2,988 | 0.63% | 1,857,124 | 2,782 | 0.61% | 1,460,740 | 2,566 | 0.71% | |
| Total interest bearing deposits | 3,377,052 | 5,646 | 0.67% | 3,309,280 | 5,409 | 0.66% | 2,832,951 | 5,245 | 0.74% | |
| FHLB advances | 421,595 | 1,218 | 1.16% | 422,944 | 1,224 | 1.17% | 329,066 | 1,603 | 1.95% | |
| Other borrowings | 43,559 | 411 | 3.73% | 42,264 | 395 | 3.74% | 47,488 | 593 | 4.95% | |
| Total interest bearing liabilities | 3,842,206 | $ 7,275 | 0.76% | 3,774,488 | $ 7,028 | 0.75% | 3,209,505 | $ 7,441 | 0.93% | |
| Non-interest bearing demand deposits | 1,214,984 | 1,138,690 | 1,021,805 | |||||||
| Total funding liabilities / cost of funds | $ 5,057,190 | 0.58% | $ 4,913,178 | 0.58% | $ 4,231,310 | 0.71% | ||||
| Net interest income / net interest spread | $ 62,104 | 4.25% | $ 59,715 | 4.26% | $ 59,502 | 4.72% | ||||
| Net interest margin | 4.49% | 4.49% | 5.02% | |||||||
| Net interest margin, excluding effect of non-accrual loan income (expense) | 4.49% | 4.47% | 5.06% | |||||||
| Net interest margin, excluding effect of non-accrual loan income (expense) and prepayment fee income | 4.47% | 4.46% | 5.04% | |||||||
| Non-accrual loan income (reversed) recognized | $ (77) | $ 236 | $ (400) | |||||||
| Prepayment fee income received | 306 | 63 | 198 | |||||||
| Net | $ 229 | $ 299 | $ (202) | |||||||
| Cost of deposits: | ||||||||||
| Non-interest bearing demand deposits | $ 1,214,984 | $ -- | $ 1,138,690 | $ -- | $ 1,021,805 | $ -- | ||||
| Interest bearing deposits | 3,377,052 | 5,646 | 0.66% | 3,309,280 | 5,409 | 0.66% | 2,832,951 | 5,245 | 0.74% | |
| Total deposits | $ 4,592,036 | $ 5,646 | 0.49% | $ 4,447,970 | $ 5,409 | 0.49% | $ 3,854,756 | $ 5,245 | 0.55% | |
| Six Months Ended | Six Months Ended | |||||||||
| 6/30/2013 | 6/30/2012 | |||||||||
| Interest | Annualized | Interest | Annualized | |||||||
| Average | Income/ | Average | Average | Income/ | Average | |||||
| Balance | Expense | Yield/Cost | Balance | Expense | Yield/Cost | |||||
| (Dollars in thousands) | (Dollars in thousands) | |||||||||
| INTEREST EARNING ASSETS: | ||||||||||
| Gross loans, includes loans held for sale | $ 4,495,673 | $ 128,502 | 5.76% | $ 3,812,708 | $ 125,923 | 6.64% | ||||
| Securities available for sale | 698,769 | 6,953 | 1.99% | 709,063 | 9,158 | 2.58% | ||||
| FRB and FHLB stock and other investments | 277,266 | 667 | 0.48% | 230,789 | 339 | 0.29% | ||||
| Federal funds sold | -- | -- | N/A | 22,787 | 78 | 0.68% | ||||
| Total interest earning assets | $ 5,471,708 | $ 136,122 | 5.01% | $ 4,775,347 | $ 135,498 | 5.70% | ||||
| INTEREST BEARING LIABILITIES: | ||||||||||
| Deposits: | ||||||||||
| Demand, interest-bearing | $ 1,275,922 | $ 3,809 | 0.60% | $ 1,208,551 | $ 3,973 | 0.66% | ||||
| Savings | 185,885 | 1,475 | 1.60% | 191,902 | 1,752 | 1.84% | ||||
| Time deposits: | ||||||||||
| $100,000 or more | 1,207,381 | 3,705 | 0.62% | 787,468 | 2,895 | 0.74% | ||||
| Other | 674,165 | 2,065 | 0.62% | 687,979 | 2,029 | 0.59% | ||||
| Total time deposits | 1,881,546 | 5,770 | 0.62% | 1,475,447 | 4,924 | 0.67% | ||||
| Total interest bearing deposits | 3,343,353 | 11,054 | 0.67% | 2,875,900 | 10,649 | 0.74% | ||||
| FHLB advances | 422,266 | 2,442 | 1.17% | 334,515 | 3,229 | 1.94% | ||||
| Other borrowings | 42,915 | 806 | 3.74% | 48,798 | 1,260 | 5.11% | ||||
| Total interest bearing liabilities | 3,808,534 | $ 14,302 | 0.76% | 3,259,213 | $ 15,138 | 0.93% | ||||
| Non-interest bearing demand deposits | 1,177,048 | 1,003,307 | ||||||||
| Total funding liabilities / cost of funds | $ 4,985,582 | 0.58% | $ 4,262,520 | 0.71% | ||||||
| Net interest income / net interest spread | $ 121,820 | 4.25% | $ 120,360 | 4.77% | ||||||
| Net interest margin | 4.49% | 5.07% | ||||||||
| Net interest margin, excluding effect of non-accrual loan income(expense) | 4.48% | 5.10% | ||||||||
| Net interest margin, excluding effect of non-accrual loan income(expense) and prepayment fee income | 4.47% | 5.09% | ||||||||
| Non-accrual loan income (reversed) recognized | $ 160 | $ (749) | ||||||||
| Prepayment fee income received | 369 | 314 | ||||||||
| Net | $ 529 | $ (435) | ||||||||
| Cost of deposits: | ||||||||||
| Non-interest bearing demand deposits | $ 1,177,048 | $ -- | $ 1,003,307 | $ -- | ||||||
| Interest bearing deposits | 3,343,353 | 11,054 | 0.67% | 2,875,900 | 10,649 | 0.74% | ||||
| Total deposits | $ 4,520,401 | $ 11,054 | 0.49% | $ 3,879,207 | $ 10,649 | 0.55% | ||||
| For the Three Months Ended | Six Months Ended | |||||||||
| 6/30/2013 | 3/31/2013 | % change | 6/30/2012 | % change | 6/30/2013 | 6/30/2012 | % change | |||
| AVERAGE BALANCES | ||||||||||
| Gross loans, includes loans held for sale | $ 4,546,461 | $ 4,444,320 | 2% | $ 3,847,921 | 18% | 4,495,673 | 3,812,708 | 18% | ||
| Investments | 1,002,267 | 949,510 | 6% | 916,128 | 9% | 976,035 | 962,639 | 1% | ||
| Interest-earning assets | 5,548,728 | 5,393,830 | 3% | 4,764,049 | 16% | 5,471,708 | 4,775,347 | 15% | ||
| Total assets | 5,880,737 | 5,727,738 | 3% | 5,102,769 | 15% | 5,804,577 | 5,121,082 | 13% | ||
| Interest-bearing deposits | 3,377,052 | 3,309,280 | 2% | 2,832,951 | 19% | 3,343,353 | 2,875,900 | 16% | ||
| Interest-bearing liabilities | 3,842,206 | 3,774,488 | 2% | 3,209,505 | 20% | 3,808,534 | 3,259,213 | 17% | ||
| Non-interest-bearing demand deposits | 1,214,984 | 1,138,690 | 7% | 1,021,805 | 19% | 1,177,048 | 1,003,307 | 17% | ||
| Stockholders' Equity | 783,181 | 765,230 | 2% | 823,839 | -5% | 774,257 | 815,111 | -5% | ||
| Net interest earning assets | 1,706,522 | 1,619,342 | 5% | 1,554,544 | 10% | 1,663,174 | 1,516,134 | 10% | ||
| LOAN PORTFOLIO COMPOSITION: | 6/30/2013 | 3/31/2013 | % change | 12/31/2012 | % change | 6/30/2012 | % change | |||
| Commercial loans | $ 1,060,196 | $ 1,078,253 | -2% | $ 1,073,625 | -1% | $ 1,053,319 | 1% | |||
| Real estate loans | 3,412,620 | 3,374,732 | 1% | 3,174,759 | 7% | 2,762,944 | 24% | |||
| Consumer and other loans | 47,088 | 48,881 | -4% | 49,954 | -6% | 60,732 | -22% | |||
| Loans outstanding | 4,519,904 | 4,501,866 | 0% | 4,298,338 | 5% | 3,876,995 | 17% | |||
| Unamortized deferred loan fees - net of costs | (1,782) | (1,820) | 2% | (2,086) | 15% | (2,457) | -27% | |||
| Loans, net of deferred loan fees and costs | 4,518,122 | 4,500,046 | 0% | 4,296,252 | 5% | 3,874,538 | 17% | |||
| Allowance for loan losses | (71,675) | (73,268) | 2% | (66,941) | -7% | (65,505) | 9% | |||
| Loan receivable, net | $ 4,446,447 | $ 4,426,778 | 0% | $ 4,229,311 | 5% | $ 3,809,033 | 17% | |||
| REAL ESTATE LOANS BY PROPERTY TYPE: | 6/30/2013 | 3/31/2013 | % change | 12/31/2012 | % change | 6/30/2012 | % change | |||
| Retail buildings | $ 939,442 | $ 914,809 | 3% | $ 868,567 | 8% | $ 808,172 | 16% | |||
| Hotels/motels | 662,011 | 642,470 | 3% | 609,076 | 9% | 457,088 | 45% | |||
| Gas stations/ car washes | 486,282 | 483,151 | 1% | 428,997 | 13% | 423,344 | 15% | |||
| Mixed-use facilities | 284,328 | 303,286 | -6% | 294,421 | -3% | 221,865 | 28% | |||
| Warehouses | 352,693 | 356,724 | -1% | 340,433 | 4% | 296,174 | 19% | |||
| Multifamily | 150,360 | 147,383 | 2% | 142,610 | 5% | 118,277 | 27% | |||
| Other | 537,504 | 526,909 | 2% | 490,655 | 10% | 438,140 | 23% | |||
| Total | $ 3,412,620 | $ 3,374,732 | 1% | $ 3,174,759 | 7% | $ 2,762,944 | 24% | |||
| DEPOSIT COMPOSITION | 6/30/2013 | 3/31/2013 | % Change | 12/31/2012 | % Change | 6/30/2012 | % Change | |||
| Non-interest-bearing demand deposits | $ 1,210,563 | $ 1,182,509 | 2% | $ 1,184,285 | 2% | $ 1,064,013 | 14% | |||
| Money market and other | 1,261,905 | 1,269,388 | -1% | 1,248,304 | 1% | 1,143,329 | 10% | |||
| Saving deposits | 181,672 | 192,208 | -5% | 180,686 | 1% | 183,087 | -1% | |||
| Time deposits of $100,000 or more | 1,276,147 | 1,237,366 | 3% | 1,088,611 | 17% | 834,719 | 53% | |||
| Other time deposits | 646,512 | 674,203 | -4% | 682,149 | -5% | 657,532 | -2% | |||
| Total deposit balances | $ 4,576,799 | $ 4,555,674 | 0% | $ 4,384,035 | 4% | $ 3,882,680 | 18% | |||
| DEPOSIT COMPOSITION (%) | 6/30/2013 | 3/31/2013 | 12/31/2012 | 6/30/2012 | ||||||
| Non-interest-bearing demand deposits | 26.4% | 26.0% | 27.0% | 27.4% | ||||||
| Money market and other | 27.6% | 27.9% | 28.6% | 29.4% | ||||||
| Saving deposits | 4.0% | 4.2% | 4.1% | 4.7% | ||||||
| Time deposits of $100,000 or more | 27.9% | 27.2% | 24.8% | 21.5% | ||||||
| Other time deposits | 14.1% | 14.8% | 15.6% | 16.9% | ||||||
| Total deposit balances | 100.0% | 100.0% | 100.0% | 100.0% | ||||||
| CAPITAL RATIOS | 6/30/2013 | 3/31/2013 | 12/31/2012 | 6/30/2012 | ||||||
| Total stockholders' equity | $ 781,025 | $ 772,275 | $ 751,104 | $ 715,461 | ||||||
| Tier 1 risk-based capital ratio | 14.89% | 14.62% | 14.91% | 15.54% | ||||||
| Total risk-based capital ratio | 16.14% | 15.88% | 16.16% | 16.80% | ||||||
| Tier 1 leverage ratio | 12.61% | 12.64% | 12.76% | 12.97% | ||||||
| Book value per common share | $ 9.86 | $ 9.79 | $ 9.62 | $ 9.14 | ||||||
| Tangible common equity per share4 | $ 8.65 | $ 8.57 | $ 8.43 | $ 7.94 | ||||||
| Tangible common equity to tangible assets4 | 11.88% | 11.77% | 11.86% | 12.49% | ||||||
| 4 Tangible common equity to tangible assets is a non-GAAP financial measure that represents common equity less goodwill and other intangible assets, net divided by total assets less goodwill and other intangible assets, net. Management reviews tangible common equity to tangible assets in evaluating the Company's capital levels and has included this ratio in response to market participant interest in tangible common equity as a measure of capital. | ||||||||||
| Reconciliation of GAAP financial measures to non-GAAP financial measures: | ||||||||||
| 6/30/2013 | 3/31/2013 | 12/31/2012 | 6/30/2012 | |||||||
| Total stockholders' equity | $ 781,025 | $ 772,275 | $ 751,104 | $ 715,461 | ||||||
| Less: Common stock warrant | (378) | (378) | (378) | (2,760) | ||||||
| Goodwill and other intangible assets, net | (95,413) | (96,805) | (92,911) | (93,518) | ||||||
| Tangible common equity | $ 685,234 | $ 675,092 | $ 657,815 | $ 619,183 | ||||||
| Total assets | $ 5,863,014 | $ 5,833,597 | $ 5,640,661 | $ 5,049,405 | ||||||
| Less: Goodwill and other intangible assets, net | (95,413) | (96,805) | (92,911) | (93,518) | ||||||
| Tangible assets | $ 5,767,601 | $ 5,736,792 | $ 5,547,750 | $ 4,955,887 | ||||||
| Common shares outstanding | 79,205,840 | 78,812,140 | 78,041,511 | 78,014,107 | ||||||
| Tangible common equity to tangible assets | 11.88% | 11.77% | 11.86% | 12.49% | ||||||
| Tangible common equity per share | $ 8.65 | $ 8.57 | $ 8.43 | $ 7.94 | ||||||
| For the Three Months Ended | Six Months Ended | |||||||||
| ALLOWANCE FOR LOAN LOSSES: | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | 6/30/2012 | 6/30/2013 | 6/30/2012 | |||
| Balance at beginning of period | $ 73,268 | $ 66,941 | $ 65,952 | $ 65,505 | $ 62,309 | $ 66,941 | $ 61,952 | |||
| Provision for loan losses | 800 | 7,506 | 2,422 | 6,900 | 7,182 | 8,306 | 9,782 | |||
| Recoveries | 507 | 250 | 587 | 1,316 | 1,623 | 757 | 2,762 | |||
| Charge offs | (2,900) | (1,429) | (2,020) | (7,769) | (5,609) | (4,329) | (8,991) | |||
| Balance at end of period | $ 71,675 | $ 73,268 | $ 66,941 | $ 65,952 | $ 65,505 | $ 71,675 | $ 65,505 | |||
| Net charge-off/average gross loans (annualized) | 0.21% | 0.11% | 0.13% | 0.64% | 0.41% | 0.16% | 0.33% | |||
| For the Three Months Ended | Six Months Ended | |||||||||
| NET CHARGED OFF LOANS BY TYPE | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | 6/30/2012 | 6/30/2013 | 6/30/2012 | |||
| Real estate loans | $ 744 | $ 1,014 | $ 651 | $ 1,101 | $ 1,377 | $ 1,758 | $ 2,987 | |||
| Commercial loans | 1,684 | 150 | 627 | 5,403 | 2,158 | 1,834 | 2,789 | |||
| Consumer loans | (35) | 15 | 155 | (51) | 451 | (20) | 453 | |||
| Total net charge-offs | $ 2,393 | $ 1,179 | $ 1,433 | $ 6,453 | $ 3,986 | $ 3,572 | $ 6,229 | |||
| NON-PERFORMING ASSETS | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | 6/30/2012 | |||||
| Delinquent loans 90 days or more on non-accrual status | $ 44,987 | $ 42,269 | $ 29,653 | $ 29,369 | $ 39,567 | |||||
| Delinquent loans 90 days or more on accrual status5 | 18,786 | 21,621 | 17,742 | 22,454 | 20,708 | |||||
| Accruing restructured loans | 36,225 | 32,249 | 29,839 | 22,175 | 22,994 | |||||
| Total non-performing loans | 99,998 | 96,139 | 77,234 | 73,998 | 83,269 | |||||
| Other real estate owned | 9,596 | 8,419 | 2,698 | 4,135 | 6,712 | |||||
| Total non-performing assets | $ 109,594 | $ 104,558 | $ 79,932 | $ 78,133 | $ 89,981 | |||||
| Non-performing assets/ total assets | 1.87% | 1.79% | 1.42% | 1.47% | 1.78% | -- | ||||
| Non-performing assets/ gross loans & OREO | 2.42% | 2.32% | 1.86% | 1.92% | 2.32% | |||||
| Non-performing assets/ total capital | 14.03% | 13.54% | 10.64% | 10.64% | 12.58% | |||||
| Non-performing loans/gross loans | 2.21% | 2.14% | 1.80% | 1.82% | 2.15% | |||||
| Non-accrual loans/gross loans | 1.00% | 0.94% | 0.69% | 0.72% | 1.02% | |||||
| Allowance for loan losses/ gross loans | 1.59% | 1.63% | 1.56% | 1.62% | 1.69% | |||||
| Allowance for loan losses/ non-accrual loans | 159.32% | 173.34% | 225.75% | 224.56% | 165.55% | |||||
| Allowance for loan losses/ non-performing loans (excludes delinquent loans 90 days or more on accrual status5) | 88.26% | 98.32% | 112.52% | 127.95% | 104.71% | |||||
| Allowance for loan losses/ non-performing assets | 65.40% | 70.07% | 83.75% | 84.41% | 72.80% | |||||
| 5 All such loans represent acquired loans that were originally recorded at fair value upon acquisition. These loans are considered to be accruing as we can reasonably estimate future cash flows on acquired loans and we expect to fully collect the carrying value of these loans. Therefore, we are accreting the difference between the carrying value of these loans and their expected cash flows. | ||||||||||
| BREAKDOWN OF ACCRUING RESTRUCTURED LOANS BY TYPE: | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | 6/30/2012 | |||||
| Retail buildings | $ 6,812 | $ 2,556 | $ 3,301 | $ 1,915 | $ 1,526 | |||||
| Hotels/motels | 8,623 | 8,701 | 8,774 | 8,841 | 8,909 | |||||
| Gas stations/ car washes | -- | -- | -- | -- | -- | |||||
| Mixed-use facilities | 811 | 816 | -- | -- | 2,312 | |||||
| Warehouses | 489 | 492 | 494 | 1,045 | 1,052 | |||||
| Multifamily | -- | 3,247 | 3,247 | -- | -- | |||||
| Other6 | 19,490 | 16,437 | 14,023 | 10,374 | 9,195 | |||||
| Total | $ 36,225 | $ 32,249 | $ 29,839 | $ 22,175 | $ 22,994 | |||||
| 6 Includes commercial business and other loans | ||||||||||
| DELINQUENT LOANS LESS THAN 90 DAYS PAST DUE | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | 6/30/2012 | |||||
| Legacy | ||||||||||
| 30 - 59 days | $ 2,056 | $ 1,174 | $ 968 | $ 3,056 | $ 5,479 | |||||
| 60 - 89 days | 85 | 2,411 | 349 | 517 | 833 | |||||
| Total delinquent loans less than 90 days past due - legacy7 | $ 2,141 | $ 3,585 | $ 1,317 | $ 3,573 | $ 6,312 | |||||
| Acquired | ||||||||||
| 30 - 59 days | $ 8,590 | $ 22,552 | $ 7,411 | $ 4,062 | $ 3,601 | |||||
| 60 - 89 days | 5,574 | 3,848 | 16,835 | 2,438 | 6,080 | |||||
| Total delinquent loans less than 90 days past due - acquired7 | $ 14,164 | $ 26,400 | $ 24,246 | $ 6,500 | $ 9,681 | |||||
| Total delinquent loans less than 90 days past due7 | $ 16,305 | $ 29,985 | $ 25,563 | $ 10,073 | $ 15,993 | |||||
| DELINQUENT LOANS LESS THAN 90 DAYS PAST DUE BY TYPE | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | 6/30/2012 | |||||
| Legacy | ||||||||||
| Real estate loans | $ 853 | $ 2,870 | $ 595 | $ 2,448 | $ 5,269 | |||||
| Commercial loans | 1,267 | 692 | 532 | 1,108 | 1,027 | |||||
| Consumer loans | 21 | 23 | 190 | 17 | 16 | |||||
| Total delinquent loans less than 90 days past due - legacy7 | $ 2,141 | $ 3,585 | $ 1,317 | $ 3,573 | $ 6,312 | |||||
| Acquired | ||||||||||
| Real estate loans | $ 11,433 | $ 14,437 | $ 21,598 | $ 3,813 | $ 6,631 | |||||
| Commercial loans | 2,461 | 11,294 | 2,533 | 2,318 | 2,422 | |||||
| Consumer loans | 270 | 669 | 115 | 369 | 628 | |||||
| Total delinquent loans less than 90 days past due - acquired7 | $ 14,164 | $ 26,400 | $ 24,246 | $ 6,500 | $ 9,681 | |||||
| Total delinquent loans less than 90 days past due7 | $ 16,305 | $ 29,985 | $ 25,563 | $ 10,073 | $ 15,993 | |||||
| NON-ACCRUAL LOANS BY TYPE | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | 6/30/2012 | |||||
| Real estate loans | $ 34,577 | $ 33,751 | $ 20,430 | $ 22,254 | $ 27,822 | |||||
| Commercial loans | 9,629 | 7,591 | 8,253 | 6,208 | 11,463 | |||||
| Consumer loans | 781 | 927 | 970 | 907 | 282 | |||||
| Total non-accrual loans7 | $ 44,987 | $ 42,269 | $ 29,653 | $ 29,369 | $ 39,567 | |||||
| CRITICIZED LOANS | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | 6/30/2012 | |||||
| Legacy | ||||||||||
| Special mention | $ 66,774 | $ 59,681 | $ 25,279 | $ 32,708 | $ 48,701 | |||||
| Substandard | 97,692 | 94,303 | 94,335 | 92,091 | 88,537 | |||||
| Doubtful | 152 | 455 | 474 | 597 | 5,530 | |||||
| Loss | -- | 22 | -- | -- | -- | |||||
| Total criticized loans - legacy7 | $ 164,618 | $ 154,461 | $ 120,088 | $ 125,396 | $ 142,768 | |||||
| Acquired | ||||||||||
| Special mention | $ 42,014 | $ 52,722 | $ 54,310 | $ 61,951 | $ 60,686 | |||||
| Substandard | 121,758 | 133,398 | 113,610 | 95,387 | 110,370 | |||||
| Doubtful | 368 | 327 | 415 | 202 | 261 | |||||
| Loss | 707 | 849 | 245 | 77 | 11 | |||||
| Total criticized loans - acquired7 | $ 164,847 | $ 187,296 | $ 168,580 | $ 157,617 | $ 171,328 | |||||
| Total criticized loans7 | $ 329,465 | $ 341,757 | $ 288,668 | $ 283,013 | $ 314,096 | |||||
| 7 Excludes the guaranteed portion of delinquent SBA loans as these are 100% guaranteed by the SBA. | ||||||||||