BBCN Bancorp Earnings: Everything You Must Know Now

BBCN Bancorp, Inc. (NASDAQ:BBCN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

BBCN Bancorp, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 45% to $0.29 in the quarter versus EPS of $0.20 in the year-earlier quarter.

Revenue: Decreased 5.79% to $72.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.29 per share. By that measure, the company beat the mean analyst estimate of $0.27. It beat the average revenue estimate of $70.31 million.

Quoting Management: “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.

Key Stats (on next page)…

Revenue decreased 5.19% from $76.68 million in the previous quarter. EPS increased 31.82% from $0.22 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.27 to a profit $0.28. For the current year, the average estimate has moved down from a profit of $1.07 to a profit of $1.04 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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