BBCN's Quarter Hurt by Bad LoanTuesday, April 23, 2013
Koreatown bank holding company BBCN Bancorp’s earnings fell well short of investors’ expectations, thanks in part to one bad loan.
The parent of BBCN Bank, the nation’s largest Korean-American bank, late Monday reported net income of $17.5 million (22 cents a share) for the quarter ended March 31. That’s down 27 percent (6 cents) from the same period a year ago.
Analysts surveyed by Thomson Reuters had expected earnings of 26 cents a share. Earnings would have been in line with the year-ago quarter if not for a $5.1 million provision for losses tied to one troubled real estate loan.
Kevin Kim, the bank’s chief executive, in a statement said BBCN had an otherwise good quarter.
“While elevated provision expense due to one large loan impacted earnings for the quarter, we believe our credit costs remain manageable,” he said. “We believe BBCN is solidly grounded for continued profitability and growth."
Shares on Tuesday closed down 27 cents, or 2 percent, to $12.74 on the Nasdaq.