BBCN Bancorp, Inc. (NASDAQ:BBCN) Q4 2014 Earnings Conference Call - Final Transcript

Jan 27, 2015 • 12:30 pm ET


BBCN Bancorp, Inc. (NASDAQ:BBCN) Q4 2014 Earnings Conference Call - Final Transcript


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Good day and welcome to the BBCN Bancorp Fourth Quarter 2014 Conference Call and Webcast. All participants will be in a listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded.

I would now like to turn the conference over to Angie Yang, SVP, IR. Please go ahead.

Angie Yang

Thank you, Emily. Good morning, everyone, and thank you for joining us for the BBCN 2014 fourth quarter investor conference call.

(Forward-Looking Cautionary Statements)

As usual, we have allotted one hour for this call. Presenting from the management's side today will be Kevin Kim, BBCN Bancorp's Chairman and CEO; Kyu Kim, our COO; and Doug Goddard, our CFO. Chief Credit Officer, Mark Lee; Chief Lending Officer, Jason Kim; and Chief Retail Banking Officer, Cha Park are also here with us today and will participate in the Q&A session.

With that, let me turn the call over to Kevin Kim. Kevin?

Kevin Kim

Thank you, Angie. Good morning everyone and thank you for joining us today. Let me begin today with some brief comments on the quarter before asking Kyu and Doug to provide more details on the financial results. When they're finished I will close with some final comments before we open up the call for questions.

Notwithstanding the headwinds of the low interest rate environment and diminishing purchase accounting benefits we've delivered a solid quarter with quality balance sheet growth is strong performance from our SBA lending group and stable expense levels. This resulted in net income of $22.7 million over $0.29 per diluted common share for the fourth quarter of 2014.

Since the formation of BBCN, we have been very strong in terms of new loan originations. For the 2014 fourth quarter, we originated $304 million in new loans, which resulted in total loan growth of 10% over year-end 2013. In total for 2014, we originated $1.33 billion in new loans reflecting a 17% increase over loan originations of $1.14 billion in 2013.

At year-end, total deposits increased to $5.69 billion, reflecting a 3% increase over September 30, 2014 and then 11% increase over December 31 of 2013, and total assets increased 10% over the course of 2014 to $7.14 billion, reflecting all organic growth.

During the fourth quarter, BBCN make history with the opening of a representative office in Seoul, marking the first ever formally expansion by a Korean American Bank into South Korea. We were very grateful that Los Angeles Mayor Eric Garcetti, and once in part, that the Mayor of Seoul Metropolitan Government will recognize the significance of this initiative and honored us with their presence at the opening reception in Seoul to this past November.

We were also pleasantly surprised with the level of media attention that we received in Korea, as a result of this event. As we have indicated in the past one and only key initiatives is to increase our commercial and industrial lending with U.S. subsidiaries of Korean National Companies to