BBCN Hikes Dividend on Strong QuarterTuesday, July 23, 2013
Koreatown bank BBCN Bancorp reported better-than-expected revenue and earnings for the second quarter and increased its dividend.
The bank late Monday reported second-quarter net income of $22.7 million (29 cents a share), up 17 percent from the same period a year ago. Revenue rose less dramatically, up 4 percent to $72.7 million. Those results exceeded Wall Street analysts’ expectations of net income of 27 cents a share on revenue of $70.6 million.
BBCN reported its loan portfolio grew in the quarter, but gains there were partially offset by lower interest margins compared to last year’s second quarter. The bank also reported it received regulatory approval for its acquisition Foster Bankshares Inc., a Korean-American banking holding company in the Chicago area. The acquisition is expected to close next month.
Following Monday’s earnings announcement, the bank on Tuesday said its board approved an increase in BBCN’s dividend for the third quarter, upping the payout from 5 cents to 7.5 cents a share.
BBCN shares were nearly flat Tuesday, closing at $15.61, up just 3 cents or 0.2 percent from Monday’s close.