10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

______________________________________________ 

FORM 10-Q

______________________________________________ 

(Mark One)

x Quarterly report pursuant to section 13 or 15 (d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2012

or

o Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number: 000-50245

______________________________________________ 

BBCN BANCORP, INC.

(Exact name of registrant as specified in its charter)

______________________________________________ 

Delaware	95-4849715
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification Number)
3731 Wilshire Boulevard, Suite 1000, Los Angeles, California	90010
(Address of Principal executive offices)	(ZIP Code)

(213) 639-1700

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

______________________________________________ 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	o	Accelerated filer	x
Non-accelerated filer	o	Smaller Reporting Company	o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o   No  x

As of October 31, 2012, there were 78,041,511 outstanding shares of the issuer’s Common Stock, $0.001 par value.

Table of Contents

		Page
PART I FINANCIAL INFORMATION
	Forward-Looking Information	3
Item 1.	FINANCIAL STATEMENTS
	Condensed Consolidated Statements of Financial Condition September 30, 2012 (Unaudited) and December 31, 2011	4
	Condensed Consolidated Statements of Income - Three and Nine Months Ended September 30, 2012 and 2011 (Unaudited)	6
	Condensed Consolidated Statements of Comprehensive Income - Three and Nine Months Ended September 30, 2012 and 2011 (Unaudited)	7
	Condensed Consolidated Statements of Changes in Stockholders’ Equity - Nine Months Ended September 30, 2012 and 2011 (Unaudited)	8
	Condensed Consolidated Statements of Cash Flows - Nine Months Ended September 30, 2012 and 2011 (Unaudited)	9
	Notes to Condensed Consolidated Financial Statements (Unaudited)	10
Item 2	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	45
Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	66
Item 4.	CONTROLS AND PROCEDURES	67
PART II OTHER INFORMATION
Item 1.	Legal Proceedings	68
Item 1A.	Risk Factors	68
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	68
Item 3.	Defaults Upon Senior Securities	68
Item 4.	Mine Safety Disclosures	68
Item 5.	Other Information	68
Item 6.	Exhibits	68
	Signatures	69
	Index to Exhibits	70
	Certifications

2

Forward-Looking Information

Certain matters discussed in this report may constitute forward-looking statements under Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. There can be no assurance that the results described or implied in such forward-looking statements will, in fact, be achieved and actual results, performance, and achievements could differ materially because our business involves inherent risks and uncertainties. The risks and uncertainties include: possible deterioration in economic conditions in our areas of operation; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; and regulatory risks associated with current and future regulations. For additional information concerning these and other risk factors, see "Part II, Item 1A. Risk Factors" contained herein and “Part I, Item 1A. Risk Factors” contained in our Annual Report on Form 10-K for the year ended December 31, 2011.

3

PART I

FINANCIAL INFORMATION

Item 1. Financial Statements

BBCN BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
	(Unaudited)
	September 30, 2012		December 31, 2011
ASSETS	(In thousands, except share data)
Cash and cash equivalents:
Cash and due from banks	$	74,441	$	81,785
Interest-earning deposit at Federal Reserve Bank	155,202		217,800
Federal funds sold	0		525
Total cash and cash equivalents	229,643		300,110
Term federal funds sold, original maturities more than 90 days	0		40,000
Securities available for sale, at fair value	687,059		740,920
Loans held for sale, at the lower of cost or fair value	58,484		42,407
Loans receivable, net of allowance for loan losses (September 30, 2012 - $65,952; December 31, 2011 - $61,952)	4,003,542		3,676,874
Other real estate owned, net	4,135		7,624
Federal Home Loan Bank ("FHLB") stock, at cost	23,500		27,373
Premises and equipment, net of accumulated depreciation and amortization (September 30, 2012 - $21,473; December 31, 2011 - $19,018)	22,672		20,913
Accrued interest receivable	12,881		13,439
Deferred tax assets, net	63,497		72,604
Customers’ liabilities on acceptances	10,373		10,515
Bank owned life insurance	43,416		42,514
Investments in affordable housing partnerships	13,776		15,367
Goodwill	89,882		90,473
Other intangible assets, net	3,335		4,276
Prepaid FDIC insurance	8,212		9,720
FDIC loss share receivable	7,325		10,819
Other assets	50,247		40,656
Total assets	$	5,331,979	$	5,166,604
(Continued)

4

BBCN BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
	(Unaudited)
	September 30, 2012		December 31, 2011
LIABILITIES AND STOCKHOLDERS’ EQUITY	(In thousands, except share data)
LIABILITIES:
Deposits:
Non-interest bearing	$	1,105,161	$	984,350
Interest bearing:
Money market and NOW accounts	1,145,304		1,237,378
Savings deposits	185,709		198,063
Time deposits of $100,000 or more	892,941		759,923
Other time deposits	723,409		761,178
Total deposits	4,052,524		3,940,892
Federal Home Loan Bank borrowings	460,815		344,402
Subordinated debentures	41,809		52,102
Accrued interest payable	5,451		6,519
Acceptances outstanding	10,373		10,515
Other liabilities	26,552		16,235
Total liabilities	4,597,524		4,370,665
STOCKHOLDERS’ EQUITY:
Preferred stock, $0.001 par value - authorized 10,000,000 undesignated shares; issued and outstanding 122,000 shares as of December 31, 2011
Series A, Fixed Rate Cumulative Perpetual Preferred Stock, issued and outstanding 67,000 shares at December 31, 2011, net, with a liquidation preference of $67,428,000 at December 31, 2011	0		65,158
Series B, Fixed Rate Cumulative Perpetual Preferred Stock, issued and outstanding 55,000 shares at December 31, 2011, net, with a liquidation preference of $55,229,000 at December 31, 2011	0		54,192
Common stock, $0.001 par value; authorized 150,000,000 shares at September 30, 2012 and December 31, 2011; issued and outstanding, 78,016,260 and 77,984,252 shares at September 30, 2012 and December 31, 2011, respectively	78		78
Additional paid-in capital	524,608		524,644
Retained earnings	198,964		142,909
Accumulated other comprehensive income, net	10,805		8,958
Total stockholders’ equity	734,455		795,939
Total liabilities and stockholders’ equity	$	5,331,979	$	5,166,604

See accompanying notes to condensed consolidated financial statements (unaudited)

5

BBCN BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

For the three and nine months ended September 30, 2012 and 2011

(Unaudited)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012		2011			2012			2011
	(In thousands, except share data)
INTEREST INCOME:
Interest and fees on loans	$	61,553	$	34,902		$	187,476		$	101,137
Interest on securities	3,782		3,843			12,940			11,738
Interest on federal funds sold and other investments	120		182			537			540
Total interest income	65,455		38,927			200,953			113,415
INTEREST EXPENSE:
Interest on deposits	5,214		4,977			15,862			15,198
Interest on FHLB advances	1,603		2,438			4,832			7,422
Interest on other borrowings	407		459			1,667			1,528
Total interest expense	7,224		7,874			22,361			24,148
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES	58,231		31,053			178,592			89,267
PROVISION FOR LOAN LOSSES	6,900		3,483			16,682			18,792
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	51,331		27,570			161,910			70,475
NON-INTEREST INCOME:
Service fees on deposit accounts	3,121		1,352			9,550			4,262
International service fees	1,183		603			3,810			1,842
Loan servicing fees, net	1,031		464			3,178			1,345
Wire transfer fees	833		343			2,349			1,013
Other income and fees	1,364		534			4,058			1,598
Net gains on sales of SBA loans	0		823			5,426			6,337
Net gains (losses) on sales of other loans	0		(30)			146			(30		)
Net gains on sales and calls of securities available for sale	133		64			949			70
Net valuation gains (losses) on interest rate swaps and caps	11		(3)			24			(120		)
Net gains (losses) on sales of OREO	(12)		108			41			135
Total non-interest income	7,664		4,258			29,531			16,452
NON-INTEREST EXPENSE:
Salaries and employee benefits	13,611		7,657			42,348			22,436
Occupancy	3,910		2,480			11,788			7,362
Furniture and equipment	1,495		984			4,181			2,853
Advertising and marketing	1,159		354			4,142			1,527
Data processing and communications	1,659		813			4,843			2,719
Professional fees	876		612			2,558			2,090
FDIC assessments	644		983			1,732			3,149
Credit related expenses	2,497		867			6,967			2,615
Merger and integration expense	183		574			3,304			1,465
Other	2,736		1,493			8,419			4,182
Total non-interest expense	28,770		16,817			90,282			50,398
INCOME BEFORE INCOME TAX PROVISION	30,225		15,011			101,159			36,529
INCOME TAX PROVISION	11,827		5,196			39,463			13,650
NET INCOME	$	18,398	$	9,815		$	61,696		$	22,879
DIVIDENDS AND DISCOUNT ACCRETION ON PREFERRED STOCK	$	0	$	(1,077	)	$	(5,640	)	$	(3,227	)
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	18,398	$	8,738		$	56,056		$	19,652
EARNINGS PER COMMON SHARE
Basic	$	0.24	$	0.23		$	0.72		$	0.52
Diluted	$	0.24	$	0.23		$	0.72		$	0.52

See accompanying notes to condensed consolidated financial statements (unaudited)

6

BBCN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the three and ninemonths ended September 30, 2012 and 2011

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
	(In thousands)
Net income	$	18,398		$	9,815		$	61,696		$	22,879
Other comprehensive income (loss):
Unrealized gain on securities available for sale and interest only strips	3,374			3,479			3,867			6,606
Reclassification adjustments for gains realized in income	(133		)	(64		)	(949		)	(70		)
Tax expense (benefit)	1,261			1,308			1,051			2,532
Change in unrealized gain on securities available for sale and interest only strips	1,980			2,107			1,867			4,004
Reclassification adjustment for the deferred gain on early settlement of interest-rate caps	(11		)	(11		)	(33		)	(33		)
Tax benefit	(5		)	(4		)	(13		)	(13		)
Change in unrealized gain on interest-rate caps	(6		)	(7		)	(20		)	(20		)
Total other comprehensive gain (loss)	1,974			2,100			1,847			3,984
Total comprehensive income	$	20,372		$	11,915		$	63,543		$	26,863

See accompanying notes to condensed consolidated financial statements (unaudited)

7

BBCN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011

(Unaudited)

				Common stock
	Preferred stock			Shares	Amount		Additional paid-in capital			Retained earnings			Accumulated other comprehensive income (loss), net
	(In thousands, except share data)
BALANCE, JANUARY 1, 2011	$	64,203		37,983,027	$	38	$	171,364		$	120,361		$	2,597
Issuance of additional shares pursuant to various stock plans				112,233			510
Tax effects of stock plans							139
Stock-based compensation							52
Preferred stock cash dividends accrued (5%)										(2,512		)
Accretion of preferred stock discount	715									(715		)
Comprehensive income:
Net income										22,879
Other comprehensive income (loss):
Change in unrealized gain on securities available for sale, net of tax													3,999
Change in unrealized gain on interest-only strips, net of tax													5
Change in unrealized gain (loss) on interest rate swaps, net of tax													(20		)
BALANCE, SEPTEMBER 30, 2011	$	64,918		38,095,260	$	38	$	172,065		$	140,013		$	6,581
BALANCE, JANUARY 1, 2012	$	119,350		77,984,252	$	78	$	524,644		$	142,909		$	8,958
Redemption of 122,000 shares of TARP preferred stock	(122,000		)
Issuance of additional shares pursuant to various stock plans				32,008			200
Tax effects of stock plans							(6		)
Stock-based compensation							1,959
Redemption of common stock warrant							(2,189		)
Preferred stock cash dividends accrued (5%)										(2,991		)
Accretion of preferred stock discount	2,650									(2,650		)
Comprehensive income:
Net income										61,696
Other comprehensive income (loss):
Change in unrealized gain on securities available for sale, net of tax													1,840
Change in unrealized gain on interest-only strips, net of tax													27
Change in unrealized gain (loss) on interest rate swaps, net of tax													(20		)
BALANCE, SEPTEMBER 30, 2012	$	0		78,016,260	$	78	$	524,608		$	198,964		$	10,805

See accompanying notes to condensed consolidated financial statements (unaudited)

8

BBCN BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011

(Unaudited)

	Nine Months Ended September 30,
	2012			2011
	(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	61,696		$	22,879
Adjustments to reconcile net income to net cash from operating activities:
Depreciation, amortization, net of discount accretion	(18,518		)	6,242
Stock-based compensation expense	1,959			52
Provision for loan losses	16,682			18,792
Valuation adjustment of loans held for sale	703			35
Valuation adjustment of OREO	2,659			491
Proceeds from sales of loans	90,022			82,849
Originations of loans held for sale	(97,968		)	(57,713		)
Net gains on sales of SBA and other loans	(6,014		)	(6,307		)
Net change in bank owned life insurance	(902		)	(560		)
Net gains on sales and calls of securities available for sale	(949		)	(70		)
Net gains on sales of OREO	(41		)	(135		)
Net valuation (gains) losses on interest rate swaps and caps	(24		)	120
Change in accrued interest receivable	558			391
Change in deferred income taxes	7,625			6,524
Change in prepaid FDIC insurance	1,508			2,995
Change in investments in affordable housing partnership	1,591			0
Change in FDIC loss share receivable	3,743			0
Change in other assets	(9,532		)	(9,377		)
Change in accrued interest payable	(1,068		)	(1,078		)
Change in other liabilities	11,754			1,017
Net cash provided by operating activities	65,484			67,147
CASH FLOWS FROM INVESTING ACTIVITIES
Net change in loans receivable	(326,194		)	(171,323		)
Proceeds from sales of securities available for sale	28,446			0
Proceeds from sales of OREO	4,341			2,945
Proceeds from matured term federal funds	100,000			0
Proceeds from sales of equipment	3			0
Purchase of premises and equipment	(5,572		)	(833		)
Purchase of securities available for sale	(111,696		)	(64,517		)
Purchase of Federal Reserve Bank stock	0			(5		)
Redemption of Federal Home Loan Bank Stock	3,873			2,156
Purchase of term federal funds	(60,000		)	0
Proceeds from matured, called, or paid-down securities available for sale	135,686			139,903
Net cash used in investing activities	(231,113		)	(91,674		)
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits	114,344			91,082
Net change in secured borrowings	0			(11,057		)
Redemption of subordinated debenture	(10,400		)	0
Redemption of preferred stock	(122,000		)	0
Payment of cash dividends on Preferred Stock	(3,648		)	(2,512		)
Proceeds from FHLB borrowings	625,000			0
Repayment of FHLB borrowings	(506,145		)	(50,000		)
Issuance of additional stock pursuant to various stock plans	200			510
Redemption of common stock warrant	(2,189		)	0
Net cash used in financing activities	95,162			28,023
NET CHANGE IN CASH AND CASH EQUIVALENTS	(70,467		)	3,496
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	300,110			172,331
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	229,643		$	175,827
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	$	23,429		$	25,226
Income taxes paid	$	26,663		$	15,182
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES
Transfer from loans receivable to other real estate owned	$	3,470		$	6,558
Transfer from loan receivables to loans held for sale	$	2,820		$	23,279
Non-cash goodwill adjustment, net	$	591		$	0

See accompanying notes to condensed consolidated financial statements (unaudited)

9

BBCN Bancorp, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

1. BBCN Bancorp, Inc.

BBCN Bancorp, Inc. ("BBCN Bancorp", on a parent-only basis, and "Company", "we" or "our" on a consolidated basis), formerly named Nara Bancorp, Inc., is a bank holding company headquartered in Los Angeles, California. BBCN Bank ("BBCN Bank" or "the Bank"), formerly named Nara Bank, opened for business in June 1989 under the name “United Citizens National Bank” as a national banking association, was renamed “Nara Bank, National Association” in January 1994 and, in January 2005, became “Nara Bank” upon converting to a California state-chartered bank. On November 30, 2011, we merged with Center Financial Corporation ("Center Financial" or "Center") in a merger of equals transaction. Concurrently with the merger, Nara Bancorp, Inc. ("Nara") changed its name to "BBCN Bancorp, Inc." At the bank level, Nara Bank merged into Center Bank and, concurrently with the merger, Center Bank changed its name to "BBCN Bank." The Bank has branches in California, the New York metropolitan area, New Jersey, the Seattle area of Washington and Chicago, as well as loan production offices in Atlanta, Dallas, Denver and Seattle.

2. Basis of Presentation

Our condensed consolidated financial statements included herein have been prepared without an audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such SEC rules and regulations.

The condensed consolidated financial statements include the accounts of BBCN Bancorp and its wholly-owned subsidiaries, principally BBCN Bank. All intercompany transactions and balances have been eliminated in consolidation.

We believe that we have made all adjustments, consisting solely of normal recurring accruals, necessary to fairly present our financial position at September 30, 2012 and the results of our operations for the three and nine months then ended. Certain reclassifications have been made to prior period amounts to conform to the current year presentation. The results of operations for the interim periods are not necessarily indicative of results to be anticipated for the full year.

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are susceptible to change in the near term relate to the determination of the allowance and provision for loan losses, the evaluation of other than temporary impairment of investment securities, accounting for derivatives and hedging activities, the determination of the carrying value for cash surrender value of life insurance, the determination of the carrying value of goodwill and other intangible assets, accounting for deferred tax assets and related valuation allowances, the determination of the fair values of investment securities and other financial instruments, accounting for lease arrangements, accounting for incentive compensation, profit sharing and bonus payments and the valuation of servicing assets.

These unaudited condensed consolidated financial statements should be read along with the audited consolidated financial statements and accompanying notes included in our 2011 Annual Report on Form 10-K.

Recent Accounting Pronouncements:

FASB ASC 350 – In September 2011, the FASB issued an update (ASU No. 2011-08, Testing Goodwill for Impairment) impacting FASB ASC 350-20, Intangibles – Goodwill and Other. The amendments in this update permit an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than the carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The more likely than not threshold is defined as having a likelihood of more than 50 percent. If after assessing the totality of events or circumstances, it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. If an entity concludes that it is more likely than not that the fair value of the reporting unit is less than the carrying amount, the entity is required to perform the first step of the two-step impairment. If the carrying amount of a reporting unit exceeds its fair value, then the entity is required to perform the second step of the goodwill impairment test to measure the amount of the impairment loss. This update became effective for the Company for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The Company has performed an analysis under this approach and it did not have a material impact on the consolidated financial statements.

8

10

FASB ASC 220 – In December 2011, the FASB issued an update (ASU No. 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05) impacting FASB ASC 220, Comprehensive Income. This update defers the requirement to present items that are reclassified from accumulated other comprehensive income to net income in both the statement where net income is presented and the statement where other comprehensive income is presented. An entity should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before ASU No. 2011-05. This update became effective for the Company for interim and annual reporting periods beginning after December 15, 2011 and did not have a material impact on the consolidated financial statements.

FASB ASC 805 – In October 2012, the FASB issued an update (ASU No. 2012-06, Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution) impacting FASB ASC 805, Business Combinations. This update specifies that when an entity recognizes an indemnification asset as a result of a government-assisted acquisition of a financial institution and subsequently a change in the cash flows expected to be collected on the indemnification asset occurs, the entity should subsequently account for the change in the measurement of the indemnification asset on the same basis as the change in the assets subject to indemnification. Any amortization of changes in value should be limited to the contractual term of the indemnification agreement (the lesser of the term of the indemnification agreement and the remaining life of the indemnified assets). This update becomes effective for interim and annual periods beginning on or after December 15, 2012, and is consistent with the Company’s current accounting treatment of changes in expected cash flows and the indemnification asset and will not have a material impact on the consolidated financial statements.

3. Center Merger

On November 30, 2011, the merger of Center and Nara (the "Merger") was completed. Pursuant to the merger agreement, holders of Center common stock received 0.7805 shares of BBCN common stock for each share of Center common stock held immediately prior to the effective time of the merger. The total Company shares issued to each Center shareholder was rounded down to the nearest whole share and cash was paid for any remaining fractional shares. Approximately 31.2 million shares of Company common stock, with a Merger date fair value of $292 million, were issued to Center shareholders. Outstanding Center stock options and restricted stock awards were converted into stock options with respect to shares of BBCN common stock or shares of BBCN common stock, respectively, with appropriate adjustments to reflect the share exchange ratio.

The Merger was accounted for by BBCN using the acquisition method of accounting under ASC 805, Business Combinations. Accordingly, the assets and liabilities of Center were recorded at their respective fair values and represent management's estimates based on available information. Through the Merger we acquired Center Bank's 21 full-service branch offices, two loan production offices, $326 million in cash, loans with a fair value of $1.4 billion, deposits with a fair value of $1.8 billion and borrowings with a fair value of $149 million. Goodwill of approximately $88 million was initially recorded in conjunction with the transaction. The goodwill related to the Merger represents the future economic benefit arising from the acquisition of Center Financial. The future economic benefits include the creation of a platform that can support future operations; strengthening our existing presence in Southern California; expanding our national presence through the addition of offices in Chicago, Seattle and Northern California; and future cost synergies. The results of Center's operations are included in our Consolidated Statements of Income subsequent to the date of the Merger.

The change in goodwill during the three and nine months ended September 30, 2012 and 2011 is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012			2011
	(In thousands)
Beginning of period	$	89,882	$	2,509	$	90,473		$	2,509
Adjustment	0		0		(591		)	0
Impairment	0		0		0			0
End of period	$	89,882	$	2,509	$	89,882		$	2,509

The goodwill arising from the Merger was reduced by a net $591 thousand to $87.4 million due to adjustments of certain acquisition date fair value asset and liability estimates during first quarter 2012.  Estimates made in the acquisition date accounting are subject to revisions during the subsequent one-year measurement period.  Due to the immateriality of the

11

revision amount, the Company elected not to retrospectively adjust the acquisition date accounting and instead recorded the adjustments in first quarter 2012. Goodwill is not amortized for book purposes and is not deductible for tax purposes.

Direct costs related to the Merger were expensed as incurred. During the three months ended September 30, 2012, we incurred $183 thousand in merger and integration expenses, including $33 thousand in salaries and benefits and $150 thousand in professional fees. During the three months ended September 30, 2011, we incurred $574 thousand in merger and integration expenses. During the nine months ended September 30, 2012, we incurred $3.3 million in merger and integration expenses, including $1.1 million in salaries and benefits and $2.2 million in professional fees. During the nine months ended September 30, 2011, we incurred $1.5 million in merger and integration expenses.

4. Stock-Based Compensation

The Company has a stock-based incentive plan, the 2007 BBCN Bancorp Equity Incentive Plan (“2007 Plan”). The 2007 Plan, approved by our stockholders on May 31, 2007, was amended and restated on July 25, 2007 and again on December 1, 2011. The 2007 Plan provides for grants of stock options, stock appreciation rights (“SARs”), restricted stock, performance shares and performance units (sometimes referred to individually or collectively as “awards”) to non-employee directors, officers, employees and consultants of the Company. Stock options may be either “incentive stock options” (“ISOs”), as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), or nonqualified stock options (“NQSOs”).

The 2007 Plan gives the Company flexibility to (i) attract and retain qualified non-employee directors, executives and other key employees and consultants with appropriate equity-based awards, (ii) motivate high levels of performance, (iii) recognize employee contributions to the Company’s success, and (iv) align the interests of Plan participants with those of the Company’s stockholders. The exercise price for shares under an ISO may not be less than 100% of fair market value (“FMV”) on the date the award is granted under Code Section 422. Similarly, under the terms of the 2007 Plan the exercise price for SARs and NQSOs may not be less than 100% of FMV on the date of grant. Performance units are awarded to a participant at the market price of the Company’s common stock on the date of award (after the lapse of the restriction period and the attainment of the performance criteria). No minimum exercise price is prescribed for performance shares and restricted stock awarded under the 2007 Plan.

ISOs, SARs and NQSOs have vesting periods of three to five years and have 10-year contractual terms. Restricted stock, performance shares, and performance units will be granted with a restriction period of not less than one year from the grant date for performance-based awards and not more than three years from the grant date for time-based vesting of grants. Compensation expense for awards is recorded over the vesting period.

Concurrently with the merger, Center's stock-based incentive plan, the Center Financial Corporation 2006 Stock Incentive Plan, adopted April 12, 2006, as amended and restated June 13, 2007 ("2006 Plan"), was assumed by BBCN, with the outstanding share awards of 585,860 shares and the 2,443,513 shares available for future grants at November 30, 2011 being converted at an exchange ratio of 0.7805.

The 2006 Plan provides for the granting of incentive stock options to officers and employees, and non-qualified stock options and restricted stock awards to employees (including officers) and non-employee directors. The option prices of all options granted under the 2006 Plan must be not less than 100% of the fair market value at the date of grant. All options granted generally vest at the rate of 20% per year except that the options granted to the non-employee directors vest at the rate of 33% per year. All options not exercised generally expire ten years after the date of grant.

Under the 2007 and 2006 plans 2,630,050 shares were available for future grants as of September 30, 2012.

The total shares reserved for issuance will serve as the underlying value for all equity awards under the 2007 Plan and the 2006 Plan. With the exception of the shares underlying stock options and restricted stock awards, the board of directors may choose to settle the awards by paying the equivalent cash value or by delivering the appropriate number of shares.

The following is a summary of stock option activity under the 2007 and 2006 Plans for the nine months ended September 30,2012:

12

	Number of Shares		Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding - January 1, 2012	830,011		$	16.35
Granted	0		0
Exercised	(28,639	)	7.11
Forfeited	0		0
Outstanding - September 30, 2012	801,372		$	16.68	5.68	$	992,000
Options exercisable - September 30, 2012	798,484		$	16.68	5.67	$	992,000
Unvested options expected to vest after September 30, 2012	2,888		$	15.95	9.17	$	0

The following is a summary of restricted and performance unit activity under the 2007 and 2006 Plans for the nine months ended September 30,2012:

	Number of Shares		Weighted- Average Grant Date Fair Value		Weighted- Average Remaining Contractual Life (Years)
Outstanding - January 1, 2012	52,480		$	7.42
Granted	502,710		10.45
Vested	(9,401	)	6.69
Forfeited	(4,599	)	7.46
Outstanding - September 30, 2012	541,190		$	10.31	9.31

The total fair value of performance units vested for the nine months ended September 30, 2012 and 2011 was $100 thousand and $56 thousand, respectively.

The amount charged against income, before income tax benefit of $328 thousand and $5 thousand, in relation to the stock-based payment arrangements, was $818 thousand and $13 thousand for the three months ended September 30, 2012 and 2011, respectively. The amount charged against income, before income tax benefit of $805 thousand and $21 thousand, in relation to the stock-based payment arrangements, was $2.0 million and $52 thousand for the nine months ended September 30, 2012 and 2011, respectively. At September 30, 2012, unrecognized compensation expense related to non-vested stock option grants and restricted and performance units aggregated $3.6 million, and is expected to be recognized over a remaining weighted average vesting period of 1.68 years.

The estimated annual stock-based compensation expense as of September 30, 2012 for each of the succeeding years is indicated in the table below:

	Stock Based Compensation Expense
	(In thousands)
Remainder of 2012	$	751
For the year ended December 31:
2013	1,412
2014	659
2015	639
2016	101
2017	7
Total	$	3,569

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5. Earnings Per Share (“EPS”)

Basic EPS does not reflect the possibility of dilution that could result from the issuance of additional shares of common stock upon exercise or conversion of outstanding securities, and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted to common stock that would then share in our earnings. For the three months ended September 30, 2012 and 2011, stock options and restricted shares awards for approximately 565 thousand shares and 381 thousand shares of common stock, respectively, were excluded in computing diluted earnings per common share because they were antidilutive. For the nine months ended September 30, 2012 and 2011, stock options and restricted shares awards for approximately 564 thousand and 376 thousand shares of common stock, respectively, were excluded in computing diluted earnings per common share because they were antidilutive. Additionally, warrants to purchase 337,000 shares of common stock (related to the TARP Capital Purchase Plan) were antidilutive and excluded for the three and nine months ended September 30, 2012. Warrants to purchase 521,000 shares of common stock (related to the TARP Capital Purchase Plan) were antidilutive and excluded for the three and nine months ended September 30, 2011.

The following table shows the computation of basic and diluted EPS for the three and six months ended September 30, 2012 and 2011.

	For the three months ended September 30,
	2012					2011
	Net income available to common stockholders (Numerator)		Shares (Denominator)	Per Share (Amount)		Net income available to common stockholders (Numerator)			Shares (Denominator)	Per Share (Amount)
	(In thousands, except share and per share data)
Net income as reported	$	18,398				$	9,815
Less: preferred stock dividends and accretion of preferred stock discount	0					(1,077		)
Basic EPS - common stock	$	18,398	78,015,960	$	0.24	$	8,738		38,098,142	$	0.23
Effect of Dilutive Securities:
Stock Options and Performance Units			87,835						5,541
Common stock warrants			0						0
Diluted EPS - common stock	$	18,398	78,103,795	$	0.24	$	8,738		38,103,683	$	0.23

	For the nine months ended September 30,
	2012						2011
	Net income available to common stockholders (Numerator)			Shares (Denominator)	Per Share (Amount)		Net income available to common stockholders (Numerator)			Shares (Denominator)	Per Share (Amount)
	(In thousands, except share and per share data)
Net income as reported	$	61,696					$	22,879
Less: preferred stock dividends and accretion of preferred stock discount	(5,640		)				(3,227		)
Basic EPS - common stock	$	56,056		78,004,458	$	0.72	$	19,652		38,044,625	$	0.52
Effect of Dilutive Securities:
Stock Options and Performance Units				77,601						25,516
Common stock warrants				0						0
Diluted EPS - common stock	$	56,056		78,082,059	$	0.72	$	19,652		38,070,141	$	0.52

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6.    Securities Available for Sale

The following is a summary of securities available for sale as of the dates indicated:

	At September 30, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(In thousands)
Debt securities:
U.S. Treasury	$	0	$	0	$	0		$	0
GSE collateralized mortgage obligations*	230,819		4,875		(25		)	235,669
GSE mortgage-backed securities*	414,487		13,243		(141		)	427,589
Trust preferred security	4,498		0		(961		)	3,537
Municipal bonds	4,506		633		0			5,139
Total debt securities	654,310		18,751		(1,127		)	671,934
Mutual funds - GSE mortgage related securities	14,710		415		0			15,125
	$	669,020	$	19,166	$	(1,127	)	$	687,059
	At December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(In thousands)
Debt securities:
U.S. Treasury	$	300	$	0	$	0		$	300
GSE collateralized mortgage obligations*	222,400		5,480		(44		)	227,836
GSE mortgage-backed securities*	477,555		10,322		(123		)	487,754
Trust preferred securities	5,532		0		(1,184		)	4,348
Municipal bonds	5,257		507		0			5,764
Total debt securities	711,044		16,309		(1,351		)	726,002
Mutual funds - GSE mortgage related securities	14,710		227		(19		)	14,918
	$	725,754	$	16,536	$	(1,370	)	$	740,920

* Government Sponsored Enterprises (GSE) investments were issued by GNMA, FNMA and FHLMC and are all residential mortgage-backed investments.

As of September 30, 2012 and December 31, 2011, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders' equity.

The proceeds from sales of securities and the associated gains are listed below:

	For the three months ended September 30,				For the nine months ended September 30,
	2012		2011		2012		2011
	(In thousands)
Proceeds	$	26,563	$	0	$	28,446	$	0
Gross gains	132		0		948		0
Gross losses	0		0		0		0

The amortized cost and estimated fair value of debt securities at September 30, 2012, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

15

	Amortized Cost		Estimated Fair Value
	(In thousands)
Available for sale:
Due within one year	$	0	$	0
Due after one year through five years	340		358
Due after five years through ten years	3,883		4,451
Due after ten years	4,781		3,867
GSE collaterized mortgage obligations	230,819		235,669
GSE mortgage-backed securities	414,487		427,589
Mutual funds - GSE mortgage related securities	14,710		15,125
	$	669,020	$	687,059

Securities with carrying values of approximately $348.9 million and $425.5 million at September 30, 2012 and December 31, 2011, respectively, were pledged to secure public deposits, various borrowings and for other purposes as required or permitted by law.

The following table shows our investments’ gross unrealized losses and estimated fair value, aggregated by investment category and the length of time that the individual securities have been in a continuous unrealized loss position as of the dates indicated.

	At September 30, 2012
	Less than 12 months						12 months or longer						Total
Description of Securities	Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses
	(In thousands)
GSE collaterized mortgage obligations	4	$	7,323	$	(25	)	0	$	0	$	0		4	$	7,323	$	(25	)
GSE mortgage-backed securities	6	9,541		(107		)	1	3,756		(34		)	7	13,297		(141		)
Trust preferred security	0	0		0			1	3,537		(961		)	1	3,537		(961		)
Mutual funds - GSE mortgage related security	0	0		0			0	0		0			0	0		0
	10	$	16,864	$	(132	)	2	$	7,293	$	(995	)	12	$	24,157	$	(1,127	)

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	At December 31, 2011
	Less than 12 months						12 months or longer						Total
Description of Securities	Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses
	(In thousands)
GSE collaterized mortgage obligations	2	$	3,305	$	(28	)	1	$	14,007	$	(16	)	3	$	17,312	$	(44	)
GSE mortgage-backed securities	5	38,082		(123		)	0	0		0			5	38,082		(123		)
Trust Preferred security	0	0		0			1	3,303		(1,184		)	1	3,303		(1,184		)
Mutual funds - GSE mortgage related security	1	5,229		(19		)	0	0		0			1	5,229		(19		)
	8	$	46,616	$	(170	)	2	$	17,310	$	(1,200	)	10	$	63,926	$	(1,370	)

We evaluate securities for other-than-temporary-impairment ("OTTI") on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the financial condition and near-term prospects of the issuer, the length of time and the extent to which the fair value of the securities has been less than our cost for the securities, and our intention to sell, or whether it is more likely than not that we will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. In analyzing an issuer’s financial condition, we consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition.

The trust preferred security at September 30, 2012 has an amortized cost of $4.5 million and an unrealized loss of $1.0 million at September 30, 2012. The trust preferred security is scheduled to mature in May 2047, and had a first call date option in May 2012. Management determined this unrealized loss did not represent OTTI at September 30, 2012 as the investment is rated investment grade and there are no credit quality concerns with the obligor. The market value decline is deemed to be due to the current market volatility and is not reflective of management’s expectations of our ability to fully recover this investment, which may be at maturity. Interest on the trust preferred security been paid as agreed and management believes this will continue in the future and the trust preferred security will be repaid in full as scheduled. For these reasons, no OTTI was recognized on the trust preferred security at September 30, 2012.

We consider the losses on our investments in unrealized loss positions at September 30, 2012 to be temporary based on: 1) the likelihood of recovery; 2) the information relative to the extent and duration of the decline in market value; and 3) the Company’s intention not to sell, and our determination that it is more likely than not that we will not be required to sell a security in an unrealized loss position before recovery of its amortized cost basis.

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7. Loans Receivable and Allowance for Loan Losses

The following is a summary of loans receivable by major category:

	September 30, 2012			December 31, 2011
	(In thousands)
Loan portfolio composition
Real estate loans:
Residential	$	3,354		$	2,043
Commercial & industrial	2,881,079			2,631,880
Construction	56,433			44,756
Total real estate loans	2,940,866			2,678,679
Commercial business	898,977			849,576
Trade finance	177,285			146,684
Consumer and other	54,442			66,631
Total loans outstanding	4,071,570			3,741,570
Less: deferred loan fees	(2,076		)	(2,744		)
Gross loans receivable	4,069,494			3,738,826
Less: allowance for loan losses	(65,952		)	(61,952		)
Loans receivable, net	$	4,003,542		$	3,676,874

Our loan portfolio is made up of four segments: real estate loans, commercial business, trade finance and consumer and other. These segments are further segregated between loans accounted for under the amortized cost method (referred to as "Legacy Loans") and acquired loans that were originally recorded at fair value with no carryover of the related pre-acquisition allowance for loan losses (referred to as "Acquired Loans"). The loans acquired from Center are further segregated between Credit Impaired Loans (loans with credit deterioration at the time of the Merger and accounted for under ASC 310-30) and Performing Loans (loans that were pass graded at the time of the Merger).

The following table presents changes in the accretable discount on the acquired Credit Impaired Loans in the merger for the three and nine months ended September 30, 2012:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012			2011		2012			2011
	(In thousands)
Balance at beginning of period	$	22,966		$	0	$	31,999		$	0
Accretion	(3,415		)	0		(10,866		)	0
Changes in expected cash flows	516			0		(1,066		)	0
Balance at end of period	$	20,067		$	0	$	20,067		$	0

On the acquisition date, the amount by which the undiscounted expected cash flows exceed the estimated fair value of the acquired loans is the “accretable yield”. The accretable yield is then measured at each financial reporting date and represents the difference between the remaining undiscounted expected cash flows and the current carrying value of the loans. The accretable yield will change from period to period due to the followings: 1) estimates of the remaining life of acquired loans will affect the amount of future interest income, 2) indicies for variable rates of interest on acquired loans may change; and 3) estimates of the amount of the contractual principal and interest that will not be collected (nonaccretable difference) may change.

18

The activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2012 is as follows:

	Legacy												Acquired												Total
	Real Estate			Commercial Business			Trade Finance			Consumer and Other			Real Estate			Commercial Business			Trade Finance			Consumer and Other
	(In thousands)
Three Months Ended September 30, 2012
Balance, beginning of period	$	37,237		$	20,880		$	3,164		$	1,115		$	2,283		$	397		$	340		$	89		$	65,505
Provision (credit) for loan losses	5,499			988			(495		)	(418		)	750			784			(157		)	(51		)	6,900
Loans charged off	(1,832		)	(5,574		)	0			(2		)	(242		)	(118		)	0			(1		)	(7,769		)
Recoveries of charged offs	973			275			0			24			0			15			0			29			1,316
Balance, end of period	$	41,877		$	16,569		$	2,669		$	719		$	2,791		$	1,078		$	183		$	66		$	65,952
Nine Months Ended September 30, 2012
Balance, beginning of period	$	39,040		$	20,681		$	1,786		$	445		$	0		$	0		$	0		$	0		$	61,952
Provision (credit) for loan losses	6,831			3,203			823			700			2,899			1,701			483			42			16,682
Loans charged off	(6,095		)	(8,470		)	0			(485		)	(411		)	(755		)	(300		)	(244		)	(16,760		)
Recoveries of charged offs	2,101			1,155			60			59			303			132			0			268			4,078
Balance, end of period	$	41,877		$	16,569		$	2,669		$	719		$	2,791		$	1,078		$	183		$	66		$	65,952

The activity in the allowance for loan losses by portfolio segment for the three and nine months endedSeptember 30, 2011 is as follows:

	Legacy											Total
	Real Estate			Commercial Business			Trade Finance		Consumer and Other
	(In thousands)
Three Months Ended September 30, 2011
Balance, beginning of period	$	39,063		$	20,058		$	188	$	387		$	59,696
Provision (credit) for loan losses	(429		)	2,007			1,602		303			3,483
Loans charged off	(2,358		)	(1,479		)	0		(133		)	(3,970		)
Recoveries of charged offs	455			321			0		24			800
Balance, end of period	$	36,731		$	20,907		$	1,790	$	581		$	60,009
Nine Months Ended September 30, 2011
Balance, beginning of period	$	36,563		$	24,930		$	192	$	635		$	62,320
Provision (credit) for loan losses	17,161			62			1,598		(28		)	18,793
Loans charged off	(18,193		)	(6,022		)	0		(256		)	(24,471		)
Recoveries of charged offs	1,200			1,937			0		230			3,367
Balance, end of period	$	36,731		$	20,907		$	1,790	$	581		$	60,009

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The following table disaggregates the allowance for loan losses and the loans receivables by impairment methodology at September 30, 2012 and December 31, 2011:

	September 30, 2012
	Legacy								Acquired								Total
	Real Estate		Commercial Business		Trade Finance		Consumer and Other		Real Estate		Commercial Business		Trade Finance		Consumer and Other
	(In thousands)
Allowance for loan losses:
Individually evaluated for impairment	$	4,510	$	2,529	$	82	$	0	$	678	$	905	$	0	$	0	$	8,704
Collectively evaluated for impairment	37,367		14,040		2,587		719		1		173		183		66		55,136
Loans acquired with credit deterioration	0		0		0		0		2,112		0		0		0		2,112
Total	$	41,877	$	16,569	$	2,669	$	719	$	2,791	$	1,078	$	183	$	66	$	65,952
Loans outstanding:
Individually evaluated for impairment	$	35,031	$	24,912	$	5,968	$	134	$	13,611	$	2,663	$	0	$	0	$	82,319
Collectively evaluated for impairment	2,152,581		689,949		161,907		28,014		635,692		133,098		9,102		23,197		3,833,540
Loans acquired with credit deterioration	0		0		0		0		103,951		48,355		308		3,097		155,711
Total	$	2,187,612	$	714,861	$	167,875	$	28,148	$	753,254	$	184,116	$	9,410	$	26,294	$	4,071,570

	December 31, 2011
	Legacy								Acquired								Total
	Real Estate		Commercial Business		Trade Finance		Consumer and Other		Real Estate		Commercial Business		Trade Finance		Consumer and Other
	(In thousands)
Allowance for loan losses:
Individually evaluated for impairment	$	10,525	$	7,168	$	342	$	0	$	0	$	0	$	0	$	0	$	18,035
Collectively evaluated for impairment	28,515		13,513		1,444		445		0		0		0		0		43,917
Loans acquired with credit deterioration	0		0		0		0		0		0		0		0		0
Total	$	39,040	$	20,681	$	1,786	$	445	$	0	$	0	$	0	$	0	$	61,952
Loans outstanding:
Individually evaluated for impairment	$	53,023	$	34,922	$	4,963	$	149	$	0	$	0	$	0	$	0	$	93,057
Collectively evaluated for impairment	1,744,740		529,195		100,658		13,963		780,152		223,928		40,110		48,700		3,481,446
Loans acquired with credit deterioration	0		0		0		0		100,764		61,531		953		3,819		167,067
Total	$	1,797,763	$	564,117	$	105,621	$	14,112	$	880,916	$	285,459	$	41,063	$	52,519	$	3,741,570

As of September 30, 2012 and December 31, 2011, we had a liability for unfunded commitments of $802 thousand and $686 thousand, respectively. For the three months ended September 30,2012 and 2011, we recognized provision for credit losses related to our unfunded commitments of $0 and $0. For the nine months ended September 30,2012 and 2011, we recognized provision for credit losses related to our unfunded commitments of $116 thousand and $0.

20

The recorded investment in individually impaired loans was as follows:

	September 30, 2012			December 31, 2011
	(In thousands)
With Allocated Allowance
Without charge-off	$	72,827		$	67,262
With charge-off	448			341
With No Allocated Allowance
Without charge-off	5,111			19,064
With charge-off	3,933			6,390
Allowance on Impaired Loans	(8,704		)	(18,035		)
Impaired Loans, net of allowance	$	73,615		$	75,022

21

The following tables detail impaired loans (Legacy and Acquired) as of September 30, 2012 and December 31, 2011 and for the three and nine months ended September 30, 2012 and for the year ended December 31, 2011. Loans with no related allowance for loan losses are believed by management to have adequate collateral securing their carrying value.

	As of September 30, 2012							For the nine months ended September 30, 2012				For the three months ended September 30, 2012
Total Impaired Loans	Recorded Investment*		Unpaid Contractual Principal Balance		Related Allowance			Average Recorded Investment*		Interest Income Recognized during Impairment		Average Recorded Investment*		Interest Income Recognized during Impairment
	(In thousands)
With Related Allowance:
Real Estate—Residential	$	0	$	0	$	0		$	0	$	0	$	0	$	0
Real Estate—Commercial
Retail	4,453		4,608		(585		)	3,021		124		3,872		39
Hotel & Motel	15,580		16,932		(2,457		)	19,673		327		19,349		106
Gas Station & Car Wash	1,688		1,726		(539		)	3,162		69		2,496		23
Mixed Use	1,837		1,914		(260		)	3,753		0		3,540		0
Industrial & Warehouse	2,248		2,332		(443		)	3,297		67		1,845		22
Other	15,249		17,293		(904		)	13,675		483		13,596		160
Real Estate—Construction	0		0		0			32		0		0		0
Commercial Business	26,191		28,873		(3,434		)	23,850		1,048		24,899		341
Trade Finance	5,968		6,417		(82		)	2,856		108		3,243		63
Consumer and Other	60		60		0			135		3		30		2
	$	73,274	$	80,155	$	(8,704	)	$	73,454	$	2,229	$	72,870	$	756
With No Related Allowance
Real Estate—Residential	$	0	$	0	$	0		$	0	$	0	$	0	$	0
Real Estate—Commercial
Retail	948		3,847		0			1,384		0		939		0
Hotel & Motel	333		2,338		0			154		0		308		0
Gas Station & Car Wash	2,649		5,593		0			1,382		0		2,158		0
Mixed Use	0		0		0			0		0		0		0
Industrial & Warehouse	376		2,814		0			3,644		0		3,125		0
Other	1,569		2,528		0			2,269		0		1,750		0
Real Estate—Construction	1,710		1,710		0			1,710		85		1,710		28
Commercial Business	1,384		3,818		0			9,442		15		5,818		5
Trade Finance	0		0		0			2,295		0		2,226		0
Consumer and Other	74		93		0			126		0		105		0
	$	9,043	$	22,741	$	0		$	22,406	$	100	$	18,139	$	33
Total	$	82,317	$	102,896	$	(8,704	)	$	95,860	$	2,329	$	91,009	$	789

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

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	As of September 30, 2012							For the nine months ended September 30, 2012				For the three months ended September 30, 2012
Acquired Impaired Loans	Recorded Investment*		Unpaid Contractual Principal Balance		Related Allowance			Average Recorded Investment*		Interest Income Recognized during Impairment		Average Recorded Investment*		Interest Income Recognized during Impairment
	(In thousands)
With Related Allowance:
Real Estate—Residential	$	0	$	0	$	0		$	0	$	0	$	0	$	0
Real Estate—Commercial
Retail	2,144		2,186		(148		)	828		86		1,546		26
Hotel & Motel	6,051		7,375		(351		)	4,595		0		6,082		0
Gas Station & Car Wash	0		0		0			71		0		0		0
Mixed Use	0		0		0			0		0		0		0
Industrial & Warehouse	822		889		(57		)	206		27		411		9
Other	3,484		4,467		(123		)	880		216		1,742		72
Real Estate—Construction	0		0		0			0		0		0		0
Commercial Business	2,282		3,176		(905		)	837		69		1,413		21
Trade Finance	0		0		0			0		0		0		0
Consumer and Other	0		0		0			0		0		0		0
	$	14,783	$	18,093	$	(1,584	)	$	7,417	$	398	$	11,194	$	128
With No Related Allowance
Real Estate—Residential	$	0	$	0	$	0		$	0	$	0	$	0	$	0
Real Estate—Commercial
Retail	4		224		0			1		0		2		0
Hotel & Motel	0		0		0			0		0		0		0
Gas Station & Car Wash	272		1,872		0			162		0		237		0
Mixed Use	0		0		0			0		0		0		0
Industrial & Warehouse	0		0		0			1,709		0		1,839		0
Other	835		1,248		0			655		0		796		0
Real Estate—Construction	0		0		0			0		0		0		0
Commercial Business	381		515		0			521		15		769		5
Trade Finance	0		0		0			0		0		0		0
Consumer and Other	0		0		0			0		0		0		0
	$	1,492	$	3,859	$	0		$	3,048	$	15	$	3,643	$	5
Total	$	16,275	$	21,952	$	(1,584	)	$	10,465	$	413	$	14,837	$	133

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

The table above includes only Acquired Loans that became impaired.

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	For the nine months ended September 30, 2011				For the three months ended September 30, 2011
	Average Recorded Investment*		Interest Income Recognized during Impairment		Average Recorded Investment*		Interest Income Recognized during Impairment
	(In thousands)
With Related Allowance:
Real Estate—Residential	$	0	$	0	$	0	$	0
Real Estate—Commercial
Retail	3,891		25		2,713		8
Hotel & Motel	13,866		764		17,448		246
Gas Station & Car Wash	2,964		71		2,591		24
Mixed Use	1,336		52		1,234		17
Industrial & Warehouse	4,967		231		4,163		77
Other	4,000		382		7,400		127
Real Estate—Construction	3,099		0		0		0
Commercial Business	23,808		327		22,188		115
Trade Finance	0		0		0		0
Consumer and Other	0		0		0		0
	$	57,931	$	1,852	$	57,737	$	614
With No Related Allowance
Real Estate—Residential	$	0	$	0	$	0	$	0
Real Estate—Commercial
Retail	5,742		0		3,838		0
Hotel & Motel	5,182		0		2,369		0
Gas Station & Car Wash	3,204		0		2,307		0
Mixed Use	2,606		0		1,861		0
Industrial & Warehouse	2,313		0		2,571		0
Other	12,629		40		8,878		13
Real Estate—Construction	3,673		84		3,421		28
Commercial Business	11,480		133		10,887		43
Trade Finance	831		0		1,076		0
Consumer and Other	144		0		154		0
	$	47,804	$	257	$	37,362	$	84
Total	$	105,735	$	2,109	$	95,099	$	698

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

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	As of December 31, 2011							For the year ended December 31, 2011
	Recorded Investment*		Unpaid Contractual Principal Balance**		Related Allowance			Average Recorded Investment*		Interest Income Recognized during Impairment
	(In thousands)
With Related Allowance:
Real Estate—Residential	$	0	$	0	$	0		$	0	$	0
Real Estate—Commercial
Retail	1,810		2,686		(668		)	3,611		34
Hotel & Motel	17,441		17,459		(4,093		)	14,581		1,013
Gas Station & Car Wash	2,265		2,669		(550		)	2,824		95
Mixed Use	2,822		2,840		(128		)	1,705		158
Industrial & Warehouse	4,242		4,246		(407		)	4,822		310
Other	14,982		14,994		(4,630		)	6,300		298
Real Estate—Construction	128		128		(49		)	2,504		0
Commercial Business	19,416		20,248		(7,168		)	24,941		538
Trade Finance	4,497		4,497		(342		)	899		71
Consumer and Other	0		0		0			0		0
	$	67,603	$	69,767	$	(18,035	)	$	62,187	$	2,517
With No Related Allowance
Real Estate—Residential	$	0	$	0	$	0		$	0	$	0
Real Estate—Commercial
Retail	2,067		4,789		0			4,871		0
Hotel & Motel	0		0		0			4,146		0
Gas Station & Car Wash	287		2,851		0			2,621		0
Mixed Use	0		0		0			2,013		0
Industrial & Warehouse	2,662		8,346		0			2,383		0
Other	2,605		4,252		0			10,521		0
Real Estate—Construction	1,710		1,710		0			3,280		113
Commercial Business	15,506		16,905		0			10,274		203
Trade Finance	467		467		0			758		30
Consumer and Other	150		180		0			145		0
	$	25,454	$	39,500	$	0		$	41,012	$	346
Total	$	93,057	$	109,267	$	(18,035	)	$	103,199	$	2,863

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

** The table has been revised to present unpaid contractual principal balances, whereas the Company had previously disclosed unpaid contractual principal balances that were net of charge-offs, interest applied to principal and purchase discounts.

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Generally, loans are placed on nonaccrual status if principal or interest payments become 90 days past due and/or management deems the collectibility of the principal and/or interest to be in question, as well as when required by regulatory requirements. Loans to a customer whose financial condition has deteriorated are considered for non-accrual status whether or not the loan is 90 days or more past due. Generally, payments received on non-accrual loans are recorded as principal reductions. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

The following tables present the aging of past due loans as of September 30, 2012 and December 31, 2011 by class of loans:

	As of September 30, 2012
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Non-accrual loans		Total Delinquent loans		Greater than 90 days and accruing
	(In thousands)
Legacy Loans
Real estate—Residential	$	29	$	0	$	0	$	29	$	0	$	29	$	0
Real estate—Commercial
Retail	1,670		0		0		1,670		2,291		3,961		0
Hotel & Motel	0		0		364		364		1,021		1,385		364
Gas Station & Car Wash	362		0		0		362		2,904		3,266		0
Mixed Use	0		0		0		0		1,837		1,837		0
Industrial & Warehouse	125		0		0		125		758		883		0
Other	0		263		0		263		6,150		6,413		0
Real estate—Construction	0		0		0		0		0		0		0
Commercial business	855		254		0		1,109		4,843		5,952		0
Trade finance	50		0		0		50		50		100		0
Consumer and other	17		0		0		17		74		91		0
Subtotal	$	3,108	$	517	$	364	$	3,989	$	19,928	$	23,917	$	364
Acquired Loans (1)
Real estate—Residential	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Real estate—Commercial
Retail	810		22		1,930		2,762		4		2,766		1,930
Hotel & Motel	0		1,549		938		2,487		6,051		8,538		938
Gas Station & Car Wash	232		0		3,134		3,366		272		3,638		3,134
Mixed Use	467		0		2,811		3,278		0		3,278		2,811
Industrial & Warehouse	18		119		0		137		0		137		0
Other	543		52		5,402		5,997		965		6,962		5,402
Real estate—Construction	0		0		6,305		6,305		0		6,305		6,305
Commercial business	1,592		676		1,147		3,415		1,315		4,730		1,147
Trade finance	0		0		0		0		0		0		0
Consumer and other	349		20		423		792		833		1,625		423
Subtotal	4,011		2,438		22,090		28,539		9,440		37,979		22,090
TOTAL	7,119		2,955		22,454		32,528		29,368		61,896		22,454

 (1) The acquired loans include Credit Impaired Loans (ASC 310-30 loans) and Performing Loans (loans that were pass graded at the time of the Merger).

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	As of December 31, 2011
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Non-accrual loans		Total Delinquent loans		Greater than 90 days and accruing
	(In Thousands)
Legacy Loans
Real estate—Residential	$	36	$	0	$	0	$	36	$	0	$	36	$	0
Real estate—Commercial
Retail	428		0		0		428		2,615		3,043		0
Hotel & Motel	0		0		0		0		481		481		0
Gas Station & Car Wash	627		0		0		627		1,367		1,994		0
Mixed Use	0		0		0		0		820		820		0
Industrial & Warehouse	360		0		0		360		3,066		3,426		0
Other	0		119		0		119		10,992		11,111		0
Real estate—Construction	0		0		0		0		128		128		0
Commercial business	1,388		388		0		1,776		11,477		13,253		0
Trade finance	0		0		0		0		117		117		0
Consumer and other	3		0		0		3		150		153		0
Subtotal	2,842		507		0		3,349		31,213		34,562		0
Acquired Loans (1)
Real estate—Residential	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Real estate—Commercial
Retail	145		64		1,675		1,884		0		1,884		1,675
Hotel & Motel	0		45		0		45		0		45		0
Gas Station & Car Wash	2,536		175		820		3,531		0		3,531		820
Mixed Use	1,178		1,677		389		3,244		0		3,244		389
Industrial & Warehouse	3,372		0		110		3,482		0		3,482		110
Other	1,467		226		4,237		5,930		0		5,930		4,237
Real estate—Construction	0		4,499		0		4,499		0		4,499		0
Commercial business	1,739		1,383		9,132		12,254		0		12,254		9,132
Trade finance	0		0		202		202		0		202		202
Consumer and other	701		369		700		1,770		0		1,770		700
Subtotal	$	11,138	$	8,438	$	17,265	$	36,841	$	0	$	36,841	$	17,265
TOTAL	$	13,980	$	8,945	$	17,265	$	40,190	$	31,213	$	71,403	$	17,265

 (1) The acquired loans include Credit Impaired Loans (ASC 310-30 loans) and Performing Loans (loans that were pass graded at the time of the Merger).

We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt, including, but not limited to, current financial information, historical payment experience, credit documentation, public information, and current economic trends. We analyze loans individually by classifying the loans as to credit risk. This analysis includes all non-homogeneous loans. This analysis is performed at least on a quarterly basis. We use the following definitions for risk ratings:

• Pass: Loans that meet a preponderance or more of the Company's underwriting criteria and evidence an acceptable level of risk.

• Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

• Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

• Doubtful/Loss: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with

27

the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans assigned a risk rating of Special Mention or worse are referred to as Criticized Loans and loans assigned a risk rating of Substandard or worse are referred to as Classified Loans. As of September 30, 2012 and December 31, 2011, Criticized Loans by class of loans were as follows:

	As of September 30, 2012
	Special Mention		Substandard		Doubtful/Loss		Total
	(In thousands)
Legacy Loans:
Real estate—Residential	$	0	$	29	$	0	$	29
Real estate—Commercial
Retail	3,059		12,188		0		15,247
Hotel & Motel	3,692		16,565		0		20,257
Gas Station & Car Wash	1,658		9,399		0		11,057
Mixed Use	1,774		3,480		0		5,254
Industrial & Warehouse	4,036		2,943		382		7,361
Other	2,958		14,695		0		17,653
Real estate—Construction	0		1,710		0		1,710
Commercial business	7,638		23,924		215		31,777
Trade finance	7,893		5,968		0		13,861
Consumer and other	0		954		0		954
Subtotal	$	32,708	$	91,855	$	597	$	125,160
Acquired Loans:
Real estate—Residential	$	0	$	0	$	0	$	0
Real estate—Commercial
Retail	13,042		7,296		0		20,338
Hotel & Motel	17,726		13,287		0		31,013
Gas Station & Car Wash	6,301		5,894		0		12,195
Mixed Use	2,320		4,017		0		6,337
Industrial & Warehouse	1,370		6,109		0		7,479
Other	4,739		16,327		0		21,066
Real estate—Construction	0		7,383		0		7,383
Commercial business	15,728		31,078		188		46,994
Trade finance	303		6		0		309
Consumer and other	422		4,226		91		4,739
Subtotal	$	61,951	$	95,623	$	279	$	157,853
Total	$	94,659	$	187,478	$	876	$	283,013

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	As of December 31, 2011
	Special Mention		Substandard		Doubtful/Loss		Total
	(In thousands)
Legacy Loans:
Real estate—Residential	$	0	$	36	$	0	$	36
Real estate—Commercial
Retail	3,434		13,468		0		16,902
Hotel & Motel	5,005		17,876		0		22,881
Gas Station & Car Wash	3,491		2,552		0		6,043
Mixed Use	2,281		3,019		0		5,300
Industrial & Warehouse	3,992		7,227		404		11,623
Other	5,904		15,500		0		21,404
Real estate—Construction	0		1,838		0		1,838
Commercial business	11,360		30,116		6,007		47,483
Trade finance	273		4,963		0		5,236
Consumer and other	0		1,079		0		1,079
Subtotal	$	35,740	$	97,674	$	6,411	$	139,825
Acquired Loans:
Real estate—Residential	$	0	$	0	$	0	$	0
Real estate—Commercial
Retail	11,562		11,286		0		22,848
Hotel & Motel	13,081		16,677		0		29,758
Gas Station & Car Wash	5,645		5,755		0		11,400
Mixed Use	3,500		2,823		0		6,323
Industrial & Warehouse	2,659		3,750		0		6,409
Other	6,673		12,579		0		19,252
Real estate—Construction	0		5,485		0		5,485
Commercial business	16,062		39,536		353		55,951
Trade finance	126		827		0		953
Consumer and other	1,658		2,518		0		4,176
Subtotal	$	60,966	$	101,236	$	353	$	162,555
Total	$	96,706	$	198,910	$	6,764	$	302,380

The following table presents loans sold from loans held for investment or transfered from held for investment to held for sale during the three and nine months ended September 30, 2012 and 2011 by portfolio segment:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Sales or reclassification to held for sale	(In thousands)
Real estate - Commercial	$	2,163	$	5,970	$	2,819	$	18,679
Real estate - Construction	0		0		0		4,600
Commercial Business	0		0		0		0
Total	$	2,163	$	5,970	$	2,819	$	23,279

The adequacy of the allowance for loan losses is determined by management based upon an evaluation and review of the credit quality of the loan portfolio, consideration of historical loan loss experience, relevant internal and external factors that affect the collection of a loan, and other pertinent factors.

29

The Migration Analysis is a formula methodology based on the Bank's actual historical net charge-off experience for each loan class (type) pool and risk grade. The migration analysis is centered on the Bank's internal credit risk rating system. Our internal loan review and external contracted credit review examinations are used to determine and validate loan risk grades. This credit review system takes into consideration factors such as: borrower's background and experience; historical and current financial condition; credit history and payment performance; economic conditions and their impact on various industries; type, fair value and volatility of the fair value of collateral; lien position; and the financial strength of any guarantors.

A general loan loss allowance is provided on loans not specifically identified as impaired (“non-impaired loans”). The Bank's general loan loss allowance has two components: quantitative and qualitative risk factors. The quantitative risk factors are based on a historical loss migration methodology. The loans are classified by class and risk grade and the historical loss migration is tracked for the various classes. Loss experience is quantified for the most recent 12 quarters and then weighted to place more significance to the most recent loss history. That loss experience is then applied to the stratified portfolio at each quarter end. For the Performing Loans acquired from Center, a general loan loss allowance is provided to the extent that there has been credit deterioration since the Merger. 

The quantitative general loan loss allowance was $20.7 million ($20.3 million for legacy loans and $0.4 million for acquired loans) at September 30, 2012, compared to $20.4 million at December 31, 2011.

Additionally, in order to systematically quantify the credit risk impact of other trends and changes within the loan portfolio, the Bank utilizes qualitative adjustments to the Migration Analysis within established parameters. The parameters for making adjustments are established under a Credit Risk Matrix that provides seven possible scenarios for each of the factors below. The matrix allows for up to three positive (Major, Moderate, and Minor), three negative (Major, Moderate, and Minor), and one neutral credit risk scenarios within each factor for each loan type pool. Generally, the factors are considered to have no significant impact (neutral) to our historical migration ratios. However, if information exists to warrant adjustment to the Migration Analysis, changes are made in accordance with the established parameters supported by narrative and/or statistical analysis. The Credit Risk Matrix and the nine possible scenarios enable the Bank to qualitatively adjust the Loss Migration Ratio by as much as 50 basis points in either direction (positive or negative) for each loan type pool. This matrix considers the following nine factors, which are patterned after the guidelines provided under the FFIEC Interagency Policy Statement on the Allowance for Loan and Lease Losses:

• Changes in lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices.

• Changes in national and local economic and business conditions and developments, including the condition of various market segments.

• Changes in the nature and volume of the loan portfolio.

• Changes in the experience, ability and depth of lending management and staff.

• Changes in the trends of the volume and severity of past due loans, Classified Loans, non-accrual loans, troubled debt restructurings and other loan modifications.

• Changes in the quality of our loan review system and the degree of oversight by the Directors.

• Changes in the value of underlying collateral for collateral-dependent loans.

• The existence and effect of any concentrations of credit and changes in the level of such concentrations.

• The effect of external factors, such as competition and legal and regulatory requirements, on the level of estimated losses in our loan portfolio.

The qualitative loan loss allowance on the loan portfolio was $34.1 million at September 30, 2012, compared to $23.5 million at December 31, 2011.

We also establish specific loss allowances for loans where we have identified potential credit risk conditions or circumstances related to a specific individual credit. The specific allowance amounts are determined by a method prescribed by FASB ASC 310-10-35-22, Measurement of Impairment. The loans identified as impaired will be accounted for in accordance with one of the three acceptable valuation methods: 1) the present value of future cash flows discounted at the loan's effective interest rate; 2) the loan's observable market price; or 3) the fair value of the collateral, if the loan is collateral dependent. For the collateral dependent impaired loans, we obtain a new appraisal to determine the amount of impairment as of the date that the loan became impaired. The appraisals are based on an “as is” valuation. To ensure that appraised values remain current, we either obtain updated appraisals every twelve months from a qualified independent appraiser or an internal re-valuation of the collateral is performed by qualified personnel. If the third party market data indicates that the value of our collateral property has declined since the most recent valuation date, we adjust the value of the property downward to reflect current market conditions. If the fair value of the collateral, less cost to sell, is less than the recorded amount of the loan, we then recognize

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impairment by creating or adjusting an existing valuation allowance with a corresponding charge to the provision for loan losses. If an impaired loan is expected to be collected through liquidation of the underlying collateral, the loan is deemed to be collateral dependent and the amount of impairment is charged off against the allowance for loan losses.

The Bank considers a loan to be impaired when it is probable that not all amounts due (principal and interest) will be collectible in accordance with the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. The significance of payment delays and payment shortfalls is determined on a case-by-case basis by taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record and the amount of the shortfall in relation to the principal and interest owed.

For commercial business loans, real estate loans and certain consumer loans, we base the measurement of loan impairment on the present value of the expected future cash flows, discounted at the loan's effective interest rate or on the fair value of the loan's collateral, less estimated costs to sell, if the loan is collateral dependent. We evaluate most consumer loans for impairment on a collective basis because these loans generally have smaller balances and are homogeneous in the underwriting of terms and conditions and in the type of collateral.

For our Credit Impaired Loans, the allowance for loan losses is based upon expected cash flows for these loans. To the extent that a deterioration in borrower credit quality results in a decrease in expected cash flows subsequent to the acquisition of the loans, an allowance for loan losses would be established based on our estimate of future credit losses over the remaining life of the loans.

The following table presents loans by portfolio segment and impairment method at September 30, 2012 and December 31, 2011:

	As of September 30, 2012
	Real estate - Residential			Real estate - Commercial			Real estate - Construction			Commercial business			Trade finance			Consumer and other			Total
	(In thousands)
Impaired loans (Gross carrying value)	$	0		$	46,930		$	1,710		$	27,575		$	5,968		$	134		$	82,317
Specific allowance	$	0		$	5,188		$	0		$	3,434		$	82		$	0		$	8,704
Loss coverage ratio	0.0		%	11.1		%	0.0		%	12.5		%	1.4		%	0.0		%	10.6		%
Non-impaired loans	$	3,354		$	2,834,149		$	54,723		$	871,402		$	171,317		$	54,308		$	3,989,253
General allowance	$	32		$	38,640		$	808		$	14,213		$	2,770		$	785		$	57,248
Loss coverage ratio	1.0		%	1.4		%	1.5		%	1.6		%	1.6		%	1.4		%	1.4		%
Total loans	$	3,354		$	2,881,079		$	56,433		$	898,977		$	177,285		$	54,442		$	4,071,570
Total allowance for loan losses	$	32		$	43,828		$	808		$	17,647		$	2,852		$	785		$	65,952
Loss coverage ratio	1.0		%	1.5		%	1.4		%	2.0		%	1.6		%	1.4		%	1.6		%

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	As of December 31, 2011
	Real estate - Residential			Real estate - Commercial			Real estate - Construction			Commercial business			Trade finance			Consumer and other			Total
	(In thousands)
Impaired loans (Gross carrying value)	$	0		$	51,183		$	1,838		$	34,922		$	4,964		$	150		$	93,057
Specific allowance	$	0		$	10,476		$	49		$	7,168		$	342		$	0		$	18,035
Loss coverage ratio	0.0		%	20.5		%	2.7		%	20.5		%	6.9		%	0.0		%	19.4		%
Non-impaired loans	$	2,043		$	2,580,697		$	42,918		$	814,654		$	141,720		$	66,481		$	3,648,513
General allowance	$	9		$	27,831		$	675		$	13,513		$	1,444		$	445		$	43,917
Loss coverage ratio	0.4		%	1.1		%	1.6		%	1.7		%	1.0		%	0.7		%	1.2		%
Total loans	$	2,043		$	2,631,880		$	44,756		$	849,576		$	146,684		$	66,631		$	3,741,570
Total allowance for loan losses	$	9		$	38,307		$	724		$	20,681		$	1,786		$	445		$	61,952
Loss coverage ratio	0.4		%	1.5		%	1.6		%	2.4		%	1.2		%	0.7		%	1.7		%

Under certain circumstances, we provide borrowers relief through loan modifications. These modifications are either temporary in nature (“temporary modifications”) or are more substantive. At September 30, 2012, total modified loans were $45.1 million, compared to $32.8 million at December 31, 2011. The temporary modifications generally consist of interest only payments for a three to six month period, whereby principal payments are deferred. At the end of the modification period, the remaining principal balance is re-amortized based on the original maturity date. Loans subject to temporary modifications are generally downgraded to Substandard or Special Mention. At the end of the modification period, the loan either 1) returns to the original contractual terms; 2) is further modified and accounted for as a troubled debt restructuring in accordance with ASC 310-10-35; or 3) is disposed of through foreclosure or liquidation.

Troubled Debt Restructurings (“TDRs”) of loans are defined by ASC 310-40, “Troubled Debt Restructurings by Creditors” and ASC 470-60, “Troubled Debt Restructurings by Debtors” and evaluated for impairment in accordance with ASC 310-10-35. The concessions may be granted in various forms, including reduction in the stated interest rate, reduction in the amount of principal amortization, forgiveness of a portion of a loan balance or accrued interest, or extension of the maturity date. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under our internal underwriting policy.

A summary of TDRs on accrual and non-accrual by type of concession as of September 30, 2012 and December 31, 2011 is presented below:

	As of September 30, 2012
	TDR on accrual								TDR on non-accrual								TOTAL
	Real estate - Commercial		Commercial Business		Other		Total		Real estate - Commercial		Commercial Business		Other		Total
	(In thousands)
Payment concession	$	2,491	$	2,028	$	0	$	4,519	$	8,871	$	3,299	$	0	$	12,170	$	16,689
Maturity / Amortization concession	398		4,267		60		4,725		662		1,810		74		2,546		7,271
Rate concession	11,896		1,035		0		12,931		8,055		47		0		8,102		21,033
Principal forgiveness	0		0		0		0		0		67		0		67		67
	$	14,785	$	7,330	$	60	$	22,175	$	17,588	$	5,223	$	74	$	22,885	$	45,060

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	As of December 31, 2011
	TDR on accrual								TDR on non-accrual								TOTAL
	Real estate - Commercial		Commercial Business		Other		Total		Real estate - Commercial		Commercial Business		Other		Total
	(In thousands)
Payment concession	$	947	$	1,364	$	0	$	2,311	$	3,840	$	3,438	$	0	$	7,278	$	9,589
Maturity / Amortization concession	0		1,355		0		1,355		1,181		1,738		0		2,919		4,274
Rate concession	12,375		2,735		0		15,110		3,344		397		0		3,741		18,851
Principal forgiveness	0		0		0		0		0		78		0		78		78
	$	13,322	$	5,454	$	0	$	18,776	$	8,365	$	5,651	$	0	$	14,016	$	32,792

TDRs on accrual status are comprised of loans that were accruing at the time of restructuring and for which the Bank anticipates full repayment of both principal and interest under the restructured terms. TDRs that are on non-accrual can be returned to accrual status after a period of sustained performance, generally determined to be six months of timely payments as modified. Sustained performance includes the periods prior to the modification if the prior performance met or exceeded the modified terms. TDRs on accrual status at September 30, 2012 were comprised of 9 commercial real estate loans totaling $14.8 million and 27 commercial business loans totaling $7.3 million. TDRs on accrual status at December 31, 2011 were comprised of 6 commercial real estate loans totaling $13.3 million and 19 commercial business loans totaling $5.5 million. We expect that the TDRs on accrual status as of September 30, 2012, which were all performing in accordance with their restructured terms, to continue to comply with the restructured terms because of the reduced principal or interest payments on these loans. TDRs that were restructured at market interest rates and had sustained performance as agreed under the modified loan terms may be reclassified as non-TDRs after each year end but are still monitored for potential impairment.

The following table presents loans by class modified as TDRs that occurred during the three and nine months ended September 30, 2012:

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	Three Months Ended September 30, 2012					Nine Months Ended September 30, 2012
	Number of Loans	Pre- Modification		Post- Modification		Number of Loans	Pre- Modification		Post- Modification
	(Dollars in thousand)
Legacy Loans:
Real estate - Commercial
Retail	0	$	0	$	0	4	$	976	$	935
Hotel & Motel	0	0		0		1	1,479		1,447
Gas Station & Car Wash	0	0		0		1	216		97
Mixed Use	0	0		0			0		0
Industrial & Warehouse	0	0		0		1	1,060		1,045
Other	0	0		0		2	8,604		5,581
Real estate - Construction	0	0		0		0	0		0
Commercial business	4	2,299		2,251		11	3,666		4,528
Trade Finance	0	0		0		1	0		50
Subtotal	4	$	2,299	$	2,251	21	$	16,001	$	13,683
Acquired Loans:
Real estate - Commercial
Retail	1	$	401	$	398	2	$	1,458	$	1,341
Hotel & Motel	0	0		0		1	6,165		6,051
Gas Station & Car Wash	0	0		0		0	0		0
Mixed Use	0	0		0		0	0		0
Industrial & Warehouse	0	0		0		0	0		0
Other	1	654		643		1	670		643
Real estate - Construction	0	0		0		0	0		0
Commercial business	1	241		230		5	748		1,425
Trade Finance	0	0		0		0	0		0
Subtotal	3	$	1,296	$	1,271	9	$	9,041	$	9,460
Total	7	$	3,595	$	3,522	30	$	25,042	$	23,143

The specific reserves for the TDRs described above as of September 30, 2012 were $1.9 million and the charge offs for the three and nine months ended September 30, 2012 were $6 thousand and $124 thousand, respectively.

The following table presents loans by class for TDRs that have been modified within the previous twelve months and have subsequently had a payment default during the three and nine months ended September 30, 2012:

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	Three Months Ended September 30, 2012			Nine Months Ended September 30, 2012
	Number of Loans	Balance		Number of Loans	Balance
	(Dollars In thousands)
Legacy Loans:
Real estate - Commercial
Retail	0	$	0	0	$	0
Gas Station & Car Wash	1	215		1	215
Industrial & Warehouse	0	0		1	1,045
Other	1	718		1	718
Commercial Business	2	45		2	45
Subtotal	4	$	978	5	$	2,023
Acquired Loans:
Real estate - Commercial
Retail	0	$	0	0	$	0
Hotel & Motel	0	0		1	6,051
Industrial & Warehouse	0	0		0	0
Other	0	0		0	0
Commercial Business	1	148		1	148
Subtotal	1	$	148	2	$	6,199
	5	$	1,126	7	$	8,222

A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. The specific reserves for the TDRs described above as of September 30, 2012 were $113 thousand and the charge offs for the three and nine months ended September 30, 2012 were $6 thousand and $124 thousand, respectively.

We have allocated $6.1 million and $6.4 million of specific reserves to TDRs as of September 30, 2012 and December 31, 2011, respectively. As of September 30, 2012 and December 31, 2011, we did not have any outstanding commitments to extend additional funds to these borrowers.

Covered Loans

On April 16, 2010, the Department of Financial Institutions closed Innovative Bank, California, and appointed the FDIC as its receiver. On the same date, Center Bank assumed the banking operations of Innovative Bank from the FDIC under a purchase and assumption agreement and two related loss sharing agreements with the FDIC. Upon the merger between Nara Bancorp and Center Financial, the Company assumed the loss sharing agreements with the FDIC.

Covered nonperforming assets totaled $2.3 million and $3.6 million at September 30, 2012 and December 31, 2011, respectively. These covered nonperforming assets are subject to the loss sharing agreements with the FDIC. The covered nonperforming assets at September 30, 2012 and December 31, 2011 were as follows:

	September 30, 2012		December 31, 2011
	(In thousands)
Covered loans on non-accrual status	$	476	$	0
Covered other real estate owned	1,821		3,575
Total covered nonperforming assets	$	2,297	$	3,575
Acquired covered loans	$	78,141	$	89,959

Loans accounted for under ASC 310-30 are generally considered accruing and performing loans and the accretable discount is accreted to interest income over the estimate life of the loan when cash flows are reasonably estimable. Accordingly, acquired impaired loans that are contractually past due are still considered to be accruing and performing loans. The loans may be classified as nonaccrual if the timing and amount of future cash flows is not reasonably estimable.

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8. Borrowings

We maintain a secured credit facility with the Federal Home Loan Bank of San Francisco (“FHLB”) against which the Bank may take advances. The borrowing capacity is limited to the lower of 25% of the Bank’s total assets or the Bank’s collateral capacity, which was $1.3 billion at September 30, 2012 and December 31, 2011. The terms of this credit facility require the Company to pledge eligible collateral with the FHLB equal to at least 100% of outstanding advances.

At September 30, 2012 and December 31, 2011, real estate secured loans with a carrying amount of approximately $2.0 billion were pledged as collateral for borrowings from the FHLB. At September 30, 2012 and December 31, 2011, other than FHLB stock, securities totaling $0 and $3.0 million, respectively, were pledged as collateral for borrowings from the FHLB.

At September 30, 2012 and December 31, 2011, FHLB borrowings were $460.8 million and $344.4 million, had a weighted average interest rate of 1.33% and 1.93%, respectively, and had various maturities through September 2017. At September 30, 2012 and December 31, 2011, $80.0 million and $205.0 million, respectively, of the advances were putable advances with various putable dates and strike prices. The cost of FHLB borrowings as of September 30, 2012 ranged between 0.28% and 3.93%. At September 30, 2012, the Company had a remaining borrowing capacity of $836.7 million.

At September 30, 2012, the contractual maturities for FHLB borrowings were as follows:

	Contractual Maturities		Maturity/ Put Date
	(In thousands)
Due within one year	$	194,000	$	245,815
Due after one year through five years	266,815		215,000
Due after five years through ten years	0		0
	$	460,815	$	460,815

In addition, as a member of the Federal Reserve Bank system, we may also borrow from the Federal Reserve Bank of San Francisco. The maximum amount that we may borrow from the Federal Reserve Bank’s discount window is up to 95% of the outstanding principal balance of the qualifying loans and the fair value of the securities that we pledge. At September 30, 2012, the principal balance of the qualifying loans was $480.2 million and the collateral value of investment securities were $0.6 million, and no borrowings were outstanding against this line.

9. Subordinated Debentures

At September 30, 2012, 4 wholly-owned subsidiary grantor trusts established by former Nara Bancorp had issued $28 million of pooled Trust Preferred Securities (“trust preferred securities”) and 1 wholly-owned subsidiary grantor trust established by former Center Financial Corporation had issued $18 million of trust preferred securities. Trust preferred securities accrue and pay distributions periodically at specified annual rates as provided in the indentures. The trusts used the net proceeds from the offering to purchase a like amount of subordinated debentures (the “Debentures”) of BBCN Bancorp. The Debentures are the sole assets of the trusts. BBCN Bancorp’s obligations under the subordinated debentures and related documents, taken together, constitute a full and unconditional guarantee by BBCN Bancorp of the obligations of the trusts. The trust preferred securities are mandatorily redeemable upon the maturity of the Debentures, or upon earlier redemption as provided in the indentures. BBCN Bancorp has the right to redeem the Debentures in whole (but not in part) on or after specific dates, at a redemption price specified in the indentures plus any accrued but unpaid interest to the redemption date. BBCN Bancorp also has a right to defer consecutive payments of interest on the debentures for up to five years.

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The following table is a summary of trust preferred securities and debentures at September 30, 2012:

Issuance Trust	Issuance Date	Trust Preferred Security Amount		Subordinated Debentures Amount		Rate Type	Initial Rate		Coupon Rate at September 30, 2012			Maturity Date
		(Dollars in thousands)
Nara Capital Trust III	6/5/2003	$	5,000	$	5,155	Variable	4.44	%	3.54	%		6/15/2033
Nara Statutory Trust IV	12/22/2003	5,000		5,155		Variable	4.02	%	3.31	%		1/7/2034
Nara Statutory Trust V	12/17/2003	10,000		10,310		Variable	4.12	%	3.34	%		12/17/2033
Nara Statutory Trust VI	3/22/2007	8,000		8,248		Variable	7.00	%	2.04	%		6/15/2037
Center Capital Trust I	12/30/2003	18,000		12,941		Variable	4.01	%	3.31	%	*	1/7/2034
TOTAL ISSUANCE		$	46,000	$	41,809

* The Center Capital Trust I trust preferred security was assumed in the Merger. The remaining discount was $5.6 million at September 30, 2012 and the effective rate of the security, including the effect of the discount accretion, was 6.03% at September 30, 2012.

The Company’s investment in the common trust securities of the issuer trusts of $1.4 million and $2.0 million at September 30, 2012 and December 31, 2011, respectively, is included in other assets. Although the subordinated debt issued by the trusts are not included as a component of stockholders' equity in the consolidated balance sheets, the debt is treated as capital for regulatory purposes. The trust preferred security debt issuances are includable in Tier I capital up to a maximum of 25% of capital on an aggregate basis. Any amount that exceeds 25% qualifies as Tier 2 capital. At September 30, 2012, all of the $46 million of the trusts’ securities qualified as Tier 1 capital. In July 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) was signed into law which, among other things, limits the ability of bank holding companies with total assets of more than $15 billion to treat trust preferred security debt issuances as Tier 1 capital. Since the Company had less than $15 billion in assets at September 30, 2012, we will be able to continue to include its existing trust preferred securities in Tier 1 capital under the Dodd-Frank Act.

10. Derivative Financial Instruments and Hedging Activities

As part of our asset and liability management strategy, the Company may enter into derivative financial instruments, such as interest rate swaps, caps and floors, with the overall goal of minimizing the impact of interest rate fluctuations on our net interest margin. Interest rate swaps and caps involve the exchange of fixed-rate and variable-rate interest payment obligations without the exchange of the underlying notional amounts.

During the first quarter of 2010, the Company entered into a three-year interest rate cap agreement with an aggregate notional amount of $50.0 million. Under this cap agreement, the Company receives quarterly payments from the counterparty when the quarterly resetting 3 Month London-Interbank Offered Rate exceeds the strike level of 2.00%. The upfront fee paid to the counterparty in entering into this interest rate cap agreement was $890 thousand.

These interest rate cap agreements are considered “free-standing” due to non-designation of a hedge relationship to any of its financial assets or liabilities. Under FASB ASC 815, valuation gains or losses on interest rate caps not designated as hedging instruments are recognized in earnings. At September 30, 2012, the aggregate fair value of the outstanding interest rate caps was $0, and we recognized mark-to-market losses on valuation of $0 and $9 thousandfor the three and nine months endedSeptember 30, 2012.

At September 30, 2012 and December 31, 2011, summary information about these interest-rate caps is as follows:

	September 30, 2012			December 31, 2011
Notional amounts	$	50	million	$	50	million
Weighted average pay rates	N/A			N/A
Weighted average receive rates	N/A			N/A
Weighted average maturity	0.41 years			1.16 years
Fair value of combined interest rate caps	$	0		$	9	thousand

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The effect of derivative instruments on the Consolidated Statement of Income for the three and nine months endedSeptember 30, 2012 and 2011 are as follows:

		Three Months Ended September 30,					Nine Months Ended September 30,
		2012		2011			2012			2011
	Location of Gain or (Loss) Recognized in Income on Derivatives	Amount of Gain or (Loss) Recognized in Income on Derivatives					Amount of Gain or (Loss) Recognized in Income on Derivatives
		(In thousands)
Derivatives not designated as hedging instruments under FASB ASC 815:
Interest rate contracts (1)	Other income	$	—	$	(14	)	$	(9	)	$	(153	)

(1) Includes amounts representing the net interest payments as stated in the contractual agreements and the valuation gains or (losses) on interest rate contracts not designated as hedging instruments.

11. Income Taxes

The Company and its subsidiaries are subject to U.S. federal income tax as well as state income taxes. The Company had total unrecognized tax benefits of $734 thousand at September 30, 2012 and $569 thousand at December 31, 2011 that relate primarily to uncertainties related to California enterprise zone loan interest deductions.

We anticipate an increase of approximately $220 thousand in the unrecognized tax benefit related to the California enterprise zone loan interest deduction within the next twelve months. The Company is subject to U.S. federal income taxes, California franchise taxes and various other state income and franchise taxes.

The statute of limitations related to the consolidated Federal income tax return is closed for all tax years up to and including 2008. The expiration of the statute of limitations related to the various state income and franchise tax returns varies by state. We were under examination by New York City for the 2007, 2008, and 2009 tax years. New York City tax authority recently closed the examination for the 2007, 2008 and 2009 tax years with an immaterial adjustment.

We recognize interest and penalties related to income tax matters in income tax expense. We had approximately $58 thousand and $77 thousand for interest and penalties accrued at September 30, 2012 and December 31, 2011, respectively.

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. In assessing the realization of deferred tax assets, management evaluates both positive and negative evidence, including the existence of any cumulative losses in the current year and the prior two years, the amount of taxes paid in available carry-back years, the forecasts of future income, applicable tax planning strategies, and assessments of current and future economic and business conditions. This analysis is updated quarterly and adjusted as necessary. Based on the analysis, the Company has determined that a valuation allowance for deferred tax assets was not required as of September 30, 2012.

12. Fair Value Measurements

FASB ASC 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect estimates of assumptions that market participants would use in pricing

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the asset or liability.

Securities Available for Sale

The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

Impaired Loans

The fair values of impaired loans are generally measured for impairment using the practical expedients permitted by FASB ASC 310-10-35 including impaired loans measured at an observable market price (if available), or at the fair value of the loan’s collateral (if the loan is collateral dependent). Fair value of the loan’s collateral, when the loan is dependent on collateral, is determined by appraisals or independent valuation, less costs to sell and result in a Level 2.

Derivatives

The fair value of our derivative financial instruments, including interest rate swaps and caps, is based on derivative valuation models using market data inputs as of the valuation date that can generally be verified and do not typically involve significant management judgments. (Level 2 inputs).

Other Real Estate Owned

Other real estate owned is fair valued at the time the loan is foreclosed upon and the asset is transferred to other real estate owned. The value is based primarily on third party appraisals, less costs to sell and result in a Level 2 classification of the inputs for determining fair value. Other real estate owned is reviewed and evaluated on at least an annual basis for additional impairment and adjusted to lower of cost or market accordingly, based on the same factors identified above.

Loans held for sale

Loans held for sale are carried at the lower of cost or fair value, as determined by outstanding commitments from investors, or based on recent comparable sales (Level 2 inputs), if available, and if not available, are based on discounted cash flows using current market rates applied to the estimated life and credit risk (Level 3 inputs) or may be assessed based upon the fair value of the collateral which is obtained from recent real estate appraisals (Level 3 inputs). These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in Level 3 classification of the inputs for determining fair value.

Assets and liabilities measured at fair value on a recurring basis are summarized below:

			Fair Value Measurements at the End of the Reporting Period Using
	September 30, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets:
Securities available for sale:
GSE collateralized mortgage obligations	$	235,669	$	0	$	235,669	$	0
GSE mortgage-backed securities	427,589		0		427,589		0
Trust preferred security	3,537		0		3,537		0
Municipal bonds	5,139		0		5,139		0
Mutual funds	15,125		15,125		0		0

There were no transfers between Level 1, 2 and 3 during the period ended September 30, 2012.

39

			Fair Value Measurements at the End of the Reporting Period Using
	December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets:
Securities available for sale:
U.S. Treasury	$	300	$	0	$	300	$	0
GSE collateralized mortgage obligations	227,836		0		227,836		0
GSE mortgage-backed securities	487,754		0		487,754		0
Trust preferred security	4,348		0		4,348		0
Municipal bonds	5,764		0		5,764		0
Mutual funds	14,918		14,918		0		0
Derivatives - Interest rate caps	9		0		9		0

Fair value adjustments for interest rate caps resulted in a net expense of $9 thousand for the nine months ended September 30, 2012 and $157 thousand for the year ended December 31, 2011.

Assets measured at fair value on a non-recurring basis are summarized below:

			Fair Value Measurements at the End of the Reporting Period Using
	September 30, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses) for the Nine Months Ended September 30, 2012			Total Gains (Losses) for the Three Months Ended September 30, 2012
	(In thousands)
Assets:
Impaired loans at fair value:
Real estate loans	$	7,928	$	0	$	7,928	$	0	$	(1,794	)	$	(800	)
Commercial business	727		0		727		0		(494		)	(160		)
Loans held for sale, net	2,725		0		2,725		0		(536		)	(380		)
Other real estate owned	4,072		0		4072		0		(2,433		)	(1,611		)

			Fair Value Measurements at the End of the Reporting Period Using
	December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses) for the Twelve Months Ended December 31, 2011
	(In thousands)
Assets:
Impaired loans at fair value:
Real estate loans	$	15,485	$	0	$	15,485	$	0	$	(6,018	)
Commercial business	6,360		0		6360		0		(2,553		)
Loans held for sale, net	6,901		0		6,901		0		(3,393		)
Other real estate owned	3,471		0		3471		0		(1,031		)

40

Fair Value of Financial Instruments

Carrying amounts and estimated fair values of financial instruments, not previously presented, at September 30, 2012 and December 31, 2011 were as follows:

	September 30, 2012
	Carrying Amount		Estimated Fair Value		Fair Value Measurement Using
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	229,643	$	229,643	Level 1
Term federal funds sold	0		0		Level 1
Loans held for sale	58,484		64,501		Level 2
Loans receivable—net	4,003,542		4,301,334		Level 3
Federal Home Loan Bank stock	23,500		N/A		N/A
Accrued interest receivable	12,881		12,881		Level 2
FDIC loss share receivable	7,325		7,325		Level 3
Customers’ liabilities on acceptances	10,373		10,373		Level 2
Financial Liabilities:
Noninterest-bearing deposits	$	1,105,161	$	1,105,161	Level 2
Saving and other interest bearing demand deposits	1,331,013		1,331,013		Level 2
Time deposits	1,616,350		1,611,240		Level 2
Borrowings from Federal Home Loan Bank	460,815		458,392		Level 2
Subordinated debentures	41,809		32,822		Level 2
Accrued interest payable	5,451		5,451		Level 2
Bank’s liabilities on acceptances outstanding	10,373		10,373		Level 2
	December 31, 2011
	Carrying Amount		Estimated Fair Value
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	300,110	$	300,110
Term federal funds sold	40,000		40,000
Loans held for sale	42,407		43,782
Loans receivable—net	3,676,874		3,933,710
Federal Home Loan Bank stock	27,373		N/A
Accrued interest receivable	13,439		13,439
FDIC loss share receivable	10,819		10,819
Customers’ liabilities on acceptances	10,515		10,515
Financial Liabilities:
Noninterest-bearing deposits	984,350		984,350
Saving and other interest bearing demand deposits	1,435,441		1,435,441
Time deposits	1,521,101		1,532,152
Borrowings from Federal Home Loan Bank	344,402		349,311
Subordinated debentures	52,102		53,757
Accrued interest payable	6,519		6,519
Bank’s liabilities on acceptances outstanding	10,515		10,515

The methods and assumptions used to estimate fair value are described as follows.

41

The carrying amount is the estimated fair value for cash and cash equivalents, savings and other interest bearing demand deposits, accrued interest receivable and payable, customer’s and Bank’s liabilities on acceptances, non-interest-bearing deposits, short-term debt, secured borrowings, and variable rate loans or deposits that reprice frequently and fully. For fixed rate loans or deposits and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. The allowance for loan losses is considered to be a reasonable estimate of discount for credit quality concerns. Fair value of SBA loans held for sale is based on market quotes. For fair value of non-SBA loans held for sale, see the measurement method discussed previously. Fair value of time deposits and debt is based on current rates for similar financing. It was not practicable to determine the fair value of Federal Reserve Bank stock or Federal Home Loan Bank stock due to restrictions placed on their transferability. The fair value of commitments to fund loans represents fees currently charged to enter into similar agreements with similar remaining maturities and is not presented herein. The fair value of these financial instruments is not material to the consolidated financial statements.

13. Stockholders’ Equity and Regulatory Matters

The Company and the Bank are subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements, such as restrictions on the growth, expansion or the payment of dividends or other capital distributions or management fees. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier I capital (as defined) to average assets (as defined). Management believes that, as of September 30, 2012 and December 31, 2011, the Company and the Bank met all capital adequacy requirements to which they are subject.

As of September 30, 2012 and December 31, 2011, the most recent regulatory notification categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier I risk-based and Tier I leverage ratios as set forth in the table below. There are no conditions or events since the notification that management believes have changed the Bank’s category.

On November 21, 2008, the Company received $67 million from the U.S. Treasury through its TARP capital purchase plan and issued 67,000 shares of cumulative preferred stock, Series A. The preferred stock paid cumulative dividends at the rate of 5% per year for the first five years and 9% per year thereafter. The shares are callable by the Company at par after three years if the repurchase is made with proceeds of a new offering or placement of common equity or of certain preferred stock treated as Tier 1 capital under applicable Federal banking regulations.

In conjunction with the purchase of the Company’s preferred stock, the U.S. Treasury received a warrant to purchase 1,042,531 shares of the Company’s common stock at $9.64 per share. The term of the warrant was ten years. On December 3, 2009, US Treasury approved the Company’s request for an adjustment to the Company’s warrant share position due to a qualified equity offering in November 2009. The adjusted number of warrant shares is 521,266, which is 50% of original number of warrant shares 1,042,531.

Upon the merger with Center Financial, the Company issued 55,000 shares of a new series of our preferred stock, designated as our Fixed Rate Cumulative Perpetual Preferred Stock, Series B, having substantially the same rights, preferences, privileges and voting powers as our Series A Preferred Stock in exchange for the shares of similar preferred stock issued by Center Financial under the Treasury Department's TARP Capital Purchase Program. The ten-year warrant to purchase Center Financial common stock that was issued in connection with Center Financial's sale of preferred stock to the Treasury Department was converted into a warrant to purchase BBCN Bancorp common stock upon our merger with Center. Reflecting the merger exchange ratio of 0.7805, the warrant now entitles the holder of the warrant to purchase, in one or more exercises of the warrant, up to 337,480 shares of BBCN Bancorp common stock at a price of $12.22 per share.

In June 2012, the Company redeemed $67 million and $55 million of the aforementioned Series A and Series B Preferred Stock, respectively.

On August 8, 2012, we purchased from the Treasury Department, the outstanding warrant dated November 21, 2008 relating to 521,266 shares of the Company's common stock, at a purchase price of $2.2 million. We have not reached agreement with the Treasury Department regarding repurchase of the warrant for the purchase of 337,480 shares of of the Company's common stock that we issued in connection with our merger with Center Financial.

42

The Company’s and the Bank’s actual capital amounts and ratios are presented in the table below:

	Actual				Required For Capital Adequacy Purposes				Required To Be Well Capitalized under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
As of September 30, 2012
Total capital (to risk-weighted assets):
Company	$	723,954	16.5	%	$	351,432	8.0	%	N/A		N/A
Bank	$	702,825	16.0	%	$	351,209	8.0	%	$	439,011	10.0	%
Tier I capital (to risk-weighted assets):
Company	$	668,710	15.2	%	$	175,716	4.0	%	N/A		N/A
Bank	$	647,616	14.8	%	$	175,604	4.0	%	$	263,407	6.0	%
Tier I capital (to average assets):
Company	$	668,710	13.2	%	$	203,354	4.0	%	N/A		N/A
Bank	$	647,616	12.7	%	$	203,307	4.0	%	$	254,134	5.0	%
	Actual				Required For Capital Adequacy Purposes				Required To Be Well Capitalized under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
As of December 31, 2011
Total capital (to risk-weighted assets):
Company	$	784,054	19.4	%	$	323,144	8.0	%	N/A		N/A
Bank	$	721,551	17.9	%	$	322,891	8.0	%	$	403,613	10.0	%
Tier I capital (to risk-weighted assets):
Company	$	733,319	18.2	%	$	161,572	4.0	%	N/A		N/A
Bank	$	670,855	16.6	%	$	161,445	4.0	%	$	242,168	6.0	%
Tier I capital (to average assets):
Company	$	733,319	19.8	%	$	148,044	4.0	%	N/A		N/A
Bank	$	670,855	18.1	%	$	148,038	4.0	%	$	185,048	5.0	%

Under federal banking law, dividends declared by the Bank in any calendar year may not, without the approval of the regulatory agency, exceed its net income for that year combined with its retained income from the preceding two years. However, the regulatory agency has previously issued a bulletin to all banks outlining guidelines limiting the circumstances under which banks may pay dividends even if the banks are otherwise statutorily authorized to pay dividends. The limitations impose a requirement or in some cases suggest that prior approval of the regulatory agency should be obtained before a dividend is paid if a bank is the subject of administrative action or if the payment could be viewed by the regulatory agency as unsafe or unusual.

Under California Financial Code Section 1133, a bank, or a majority-owned subsidiary of a bank may, with the prior approval of the commissioner, make a distribution to the shareholders of such bank in an amount not exceeding the greatest of: a) the retained earnings of the bank; (b) the net income of the bank for its last fiscal year; or (c) the net income of the bank for its current fiscal year.

43

14. Subsequent Event

On October 22, 2012, the Company announced that it has signed a definitive agreement under which Pacific International Bancorp, a Seattle-based company, will merge with the Company. Pacific International has total assets of approximately $200 million, and its primary subsidiary, Pacific International Bank, a Washington state-chartered bank, has four bank locations in the Seattle metropolitan area. Upon completion of the transaction, which is expected to close during first quarter 2013, the Company will have six branches in the Seattle area.

Under the terms of the merger agreement, the stock-for-stock transaction is valued at approximately $8.2 million, valuing each outstanding share of Pacific International common stock at $1.75. As part of the transaction, Pacific International’s $6.5 million in Series A Preferred Stock issued under the U.S. Treasury’s TARP Capital Purchase Program will be retired.

The transaction is subject to regulatory approval, the approval of the shareholders of Pacific International, and other customary closing conditions.

44

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2011 and the unaudited consolidated financial statements and notes set forth elsewhere in this report.

GENERAL

Selected Financial Data

The following table sets forth certain selected financial data concerning the periods indicated:

	At or for the Three Months Ended September 30,						At or for the Nine Months Ended September 30,
	2012			2011			2012			2011
	(Dollars in thousands, except share and per share data)
Income Statement Data:
Interest income	$	65,455		$	38,927		$	200,953		$	113,415
Interest expense	7,224			7,874			22,361			24,148
Net interest income	58,231			31,053			178,592			89,267
Provision for loan losses	6,900			3,483			16,682			18,792
Net interest income after provision for loan losses	51,331			27,570			161,910			70,475
Non-interest income	7,664			4,258			29,531			16,452
Non-interest expense	28,770			16,817			90,282			50,398
Income before income tax expense	30,225			15,011			101,159			36,529
Income tax expense	11,827			5,196			39,463			13,650
Net income	$	18,398		$	9,815		$	61,696		$	22,879
Dividends and discount accretion on preferred stock	$	0		$	(1,077	)	$	(5,640	)	$	(3,227	)
Gain on repurchase of stock warrant	193			0			193			0
Net income available to common stockholders	$	18,591		$	8,738		$	56,249		$	19,652
Per Share Data:
Earnings per common share - basic	$	0.24		$	0.23		$	0.72		$	0.52
Earnings per common share - diluted	$	0.24		$	0.23		$	0.72		$	0.52
Book value per common share (period end, excluding preferred stock and warrants)	$	9.41		$	8.30		$	9.41		$	8.30
Tangible book value per common share (period end, excluding preferred stock and warrants) (12)	$	8.21		$	8.23		$	8.21		$	8.23
Number of common shares outstanding (period end)	78,016,260			38,095,260			78,016,260			38,095,260
Weighted average shares - basic	78,015,960			38,098,142			78,004,458			38,044,625
Weighted average shares - diluted	78,103,795			38,103,683			78,082,059			38,070,141
Tangible common equity ratio (9)	12.23		%	10.40		%	12.23		%	10.40		%
Statement of Financial Condition Data - at Period End:
Assets	$	5,331,979		$	3,016,127		$	5,331,979		$	3,016,127
Securities available for sale	687,059			455,789			687,059			455,789
Gross loans, net of deferred loan fees and costs (excludes loans held for sale)	4,069,494			2,257,667			4,069,494			2,257,667
Deposits	4,052,524			2,267,196			4,052,524			2,267,196
Federal Home Loan Bank borrowings	460,815			300,000			460,815			300,000
Subordinated debentures	41,809			39,268			41,809			39,268
Stockholders’ equity	734,455			383,615			734,455			383,615

45

	At or for the Three Months Ended September 30,						At or for the Nine Months Ended September 30,
	2012			2011			2012			2011
	(Dollars in thousands)
Average Balance Sheet Data:
Assets	$	5,179,186		$	2,987,441		$	5,140,591		$	2,952,371
Securities available for sale	679,764			486,009			699,225			504,402
Gross loans, including loans held for sale	4,007,402			2,248,544			3,878,080			2,202,535
Deposits	3,962,379			2,244,808			3,906,834			2,199,023
Stockholders’ equity	728,038			377,654			785,875			370,155
Selected Performance Ratios:
Return on average assets (1) (8)	1.42		%	1.31		%	1.60		%	1.03		%
Return on average stockholders’ equity (1) (8)	10.11		%	10.40		%	10.47		%	8.24		%
Return on average tangible equity (1)(8) (11)	11.60		%	10.48		%	11.89		%	8.31		%
Pre Tax- Pre Provision income to average assets (1)	2.87		%	2.48		%	3.06		%	2.50		%
Efficiency ratio (2)	43.66		%	47.63		%	43.38		%	47.67		%
Net interest margin (3)	4.79		%	4.29		%	4.97		%	4.20		%
Regulatory Capital Ratios (4)
Leverage capital ratio (5)	13.15		%	13.50		%	13.15		%	13.50		%
Tier 1 risk-based capital ratio	15.22		%	16.71		%	15.22		%	16.71		%
Total risk-based capital ratio	16.48		%	17.98		%	16.48		%	17.98		%
Tier 1 common -risk based capital ratio (13)	14.26		%	12.42		%	14.26		%	12.42		%
Asset Quality Ratios:
Allowance for loan losses to gross loans, excluding loans held for sale	1.62		%	2.66		%	1.62		%	2.66		%
Allowance for loan losses to legacy loans (10)	2.00		%	2.66		%	2.00		%	2.66		%
Allowance for loan losses to non-accrual loans	224.56		%	215.94		%	224.56		%	215.94		%
Allowance for loan losses to non-performing loans (6)	89.13		%	116.90		%	89.13		%	116.90		%
Allowance for loan losses to non-performing assets (7)	84.41		%	106.83		%	84.41		%	106.83		%
Nonaccrual loans to gross loans, excluding loans held for sale	0.72		%	1.23		%	0.72		%	1.23		%
Nonperforming loans to gross loans, excluding loans held for sale (6)	1.82		%	2.26		%	1.82		%	2.26		%
Nonperforming assets to gross loans and OREO (7)	1.92		%	2.47		%	1.92		%	2.47		%
Total non-performing assets to total assets (7)	1.47		%	1.86		%	1.47		%	1.86		%

(1) Annualized.

(2) Efficiency ratio is defined as non-interest expense divided by the sum of net interest income before provision for loan losses and non-interest income.

(3) Net interest margin is calculated by dividing annualized net interest income by average total interest-earning assets.

(4) The ratios required to meet the definition of a “well-capitalized” institution under certain banking regulations are 5% leverage capital, 6% tier I risk-based capital and 10% total risk-based capital.

(5) Calculations are based on average quarterly asset balances.

(6) Non-performing loans include non-accrual loans, loans past due 90 days or more and still accruing interest, and accruing restructured loans. Loans 90 days or more past due and still accruing consist of acquired loans that were originally recorded at fair value upon acquisitions. 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.

(7) Non-performing assets include non-accrual loans, loans past due 90 days or more and still accruing interest, other real estate owned, and accruing restructured loans.

(8) Based on net income before effect of dividends and discount accretion on preferred stock.

(9) Excludes TARP preferred stock, net of discount, of $0and $64.9 million and stock warrants of $378 thousand and $2.4 million at September 30, 2012 and 2011, respectively.

(10) Legacy loans are those loans accounted for under the amortized cost method and do not include loans acquired from Center Financial Corporation on November 30, 2011. This is a non-GAAP measure that we believe provides investors with information

46

that is useful in understanding our financial performance and position. Allowance for loan losses to legacy loans is calculated by dividing the gross legacy loan balance by allowance for loan losses.

(11) Average tangible equity is calculated by subtracting average goodwill and average other intangibles from average stockholders' equity. This is a non-GAAP measure that we believe provides investors with information that is useful in understanding our financial performance and position.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
	(Dollars in thousands)
Net income	$	18,398		$	9,815		$	61,696		$	22,879
Average stockholders' equity	$	728,038		$	377,654		$	785,875		$	370,155
Less: Average goodwill and other intangible assets, net	(93,407		)	(2,861		)	(93,771		)	(2,938		)
Average tangible equity	$	634,631		$	374,793		$	692,104		$	367,217
Net income (annualized) to average tangible equity	11.60		%	10.48		%	11.89		%	8.31		%

(12) Tangible book value per share is calculated by subtracting goodwill and other intangible assets from total stockholders' equity and dividing the difference by the number of shares of common stock outstanding. This is a non-GAAP measure that we believe provides investors with information that is useful in understanding our financial performance and position.

	September 30, 2012			September 30, 2011
	(In thousands)
Total stockholders' equity	$	734,455		$	383,615
Less: Preferred stock, net of discount	0			(64,918		)
Common stock warrant	(378		)	(2,383		)
Goodwill and other intangible assets, net	(93,216		)	(2,811		)
Tangible common equity	$	640,861		$	313,503
Common shares outstanding	78,016,260			38,095,260
Tangible common equity per share	$	8.21		$	8.23

(13) Tier 1 common is calculated as Tier 1 capital less non-common elements, including perpetual preferred stock and related surplus, minority interest in subsidiaries, trust preferred securities and mandatory convertible preferred securities.

	September 30, 2012			September 30, 2011
	(In thousands)
Tier 1 capital	$	666,652		$	401,441
Less: Preferred stock, net of discount	0			(64,918		)
Trust preferred securities less unamortized acquisition discount of $5,616	(40,384		)	(38,000		)
Tier 1 common-risk based capital	$	626,268		$	298,523
Total risk weighted assets less disallowed allowance for loan losses	4,392,505			2,402,920
Tier 1 common-risk based capital ratio	14.26		%	12.42		%

47

Results of Operations

Overview

Total assets increased $165.4 million from $5.17 billion at December 31, 2011 to $5.33 billion at September 30, 2012. The increase in total assets was primarily due to a $326.7 million increase in loans receivable, net of allowance for loan losses, from $3.7 billion at December 31, 2011 to $4.0 billion at September 30, 2012. This increase was partially offset by a $70.5 million decrease in cash and cash equivalents from $300.1 million at December 31, 2011 to $229.6 million at September 30, 2012, a $40.0 million decrease in term federal funds sold from $40.0 million at December 31, 2011 to none at September 30, 2012 and a $53.9 million decrease in securities available for sale from $740.9 million at December 31, 2011 to 687.1 million at September 30, 2012. The increase in total assets was funded by a $111.6 million increase in deposits from $3.94 billion at December 31, 2011 to $4.05 billion at September 30, 2012, a $116.4 million increase in borrowings from the FHLB from $344.4 million at December 31, 2011 to $460.8 million at September 30, 2012 and net income available to common stockholders of $56.1 million. The increases in deposits and net income available to common shareholders were partially offset by the $122 million redemption of the Series A and Series B Perpetual Preferred Stock issued under the U.S. Treasury's TARP Capital Purchase Program in June 2012. The redemption covered the total combined preferred stock investment by the U.S. Treasury of $67 million in the former Nara Bancorp, Inc. and $55 million in the former Center Financial Corporation ("Center").

The net income available to common stockholders for the third quarter of 2012 was $18.4 million, or $0.24 per diluted common share, compared to the net income available to common stockholders of $8.7 million, or $0.23 per diluted common share, for the same period of 2011, an increase of $9.7 million, or 111%. The net income available to common stockholders for the nine months ended September 30, 2012 was $56.1 million, or $0.72 per diluted common share, compared to the net income available to common stockholders of $19.7 million, or $0.52 per diluted common share, for the same period of 2011, an increase of $36.4 million, or 185%. The merger with Center (the "Merger") impacts the comparability of the operating results for the third quarters of 2012 and 2011 and for the nine month periods ended September 30, 2012 and 2011 because the Merger closed in the fourth quarter of 2011 and resulted in significant increases in interest earning assets, interest bearing liabilities, employees and branch locations. In addition, the assets and liabilities of Center were recorded at fair value and certain acquisition premiums and discounts are being amortized or accreted into income or expense as adjustments to the yield/cost of the related asset or liability. The operating results for the three months ended September 30, 2012 and 2011 and the nine months ended September 30, 2012 and 2011 include the following pre-tax acquisition accounting adjustments and expenses related to the Merger.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
	(In thousands)
Accretion of discount on Center loans (1)	$	6,105		$	0		$	23,445		$	0
Amortization of premiums on Center FHLB borrowings (2)	307			0			2,442			0
Accretion of discount on Center subordinated debt (3)	(37		)	0			(108		)	0
Amortization of premium on Center time deposits (4)	650			0			2,712			0
Amortization of core deposit intangibles from Center (5)	(253		)	0			(796		)	0
Accretion of discounts on other Center assets (6)	158			0			272			0
Amortization of unfavorable lease liability (7)	53			0			168			0
Merger and integration expense (8)	(183		)	(574		)	(3,304		)	(1,466		)
Increase (decrease) to pre-tax income	$	6,800		$	(574	)	$	24,831		$	(1,466	)

⁽¹⁾ The fair value of the Center loans was estimated to be $118.0 million below the principal amount of such loans on the Merger date. The accretable portion of the discounts on the loans is being accreted into interest income over the remaining lives of the acquired loans.

⁽²⁾ The fair value of the outstanding FHLB borrowings assumed from Center was estimated to be above the face amount of such debt. The premiums on FHLB borrowings are being amortized into interest expense over the remaining term of the debt.

⁽³⁾ The fair value of the outstanding subordinated debt assumed from Center was estimated to be below the face amount of such debt. The discounts on the subordinated debt are being accreted into interest expense over the remaining term of the debt.

⁽⁴⁾ The fair value of time deposits assumed from Center was estimated to be above the face amount of such deposits. The premiums on certificates of deposits are being amortized into interest expense over the remaining term of the deposits.

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⁽⁵⁾ A core deposit intangible arises in an acquisition of a financial institution or a financial institution branch having a deposit base comprised of stable customer relationships. These customer relationships provide a future benefit to the acquiring institution due to their favorable interest rates in comparison to market rates for alternative funding sources with terms similar to the length of time the customer relationships are expected to be retained. The initial value assigned to a core deposit intangible represents the present value of this future economic benefit. The core deposit intangible asset recognized as part of the Merger is being amortized over its estimated useful life of approximately seven years utilizing an accelerated amortization method.

⁽⁶⁾ Discounts on other assets primarily relate to servicing assets, investments in affordable housing partnerships and the fair value of the favorable operating leases.

⁽⁷⁾ Unfavorable lease liability relates to the Center facility lease contracts which had rental rates that exceeded market rental rates on the Merger date.

⁽⁸⁾ Direct costs related to the Center merger were expensed as incurred. During the three months ended September 30, 2012, we incurred $183 thousand in merger and integration expenses, including $33 thousand in salaries and benefits and $150 thousand in professional fees. During the three months ended September 30, 2011, we incurred $574 thousand in merger and integration expenses. During the nine months ended September 30, 2012, we incurred $3.3 million in merger and integration expenses, including $1.1 million in salaries and benefits and $2.2 million in professional fees. During the nine months ended September 30, 2011, we incurred $1.5 million in merger and integration expenses.

The annualized return on average assets, before the effect of dividends and discount accretion on preferred stock on average assets, was 1.42% for the third quarter of 2012 compared to 1.31% for the same period of 2011. The annualized return on average stockholders' equity, before the effect of dividends and discount accretion on preferred stock, was 10.11% for the third quarter of 2012 compared to 10.40% for the same period of 2011. The efficiency ratio was 43.66% for the third quarter of 2012 compared to 47.63% for the same period of 2011.

The annualized return on average assets, before the effect of dividends and discount accretion on preferred stock on average assets, was 1.60% for the nine months ended September 30, 2012 compared to 1.03% for the same period of 2011. The annualized return on average stockholders' equity, before the effect of dividends and discount accretion on preferred stock, was 10.47% for the nine months ended September 30, 2012 compared to 8.24% for the same period of 2011. The efficiency ratio was 43.38% for the nine months ended September 30, 2012 compared to 47.67% for the same period of 2011.

Net Interest Income and Net Interest Margin

Net Interest Income and Expense

A principal component of the Company's earnings is net interest income, which is the difference between the interest and fees earned on loans and investments and the interest paid on deposits and borrowed funds. Net interest income expressed as a percentage of average interest-earning assets is referred to as the net interest margin. The net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. Net interest income is affected by changes in the balances of interest-earning assets and interest-bearing liabilities and changes in the yields earned on interest-earning assets and the rates paid on interest-bearing liabilities.

Comparison of Three Months Ended September 30, 2012 with the Same Period of 2011

Net interest income before provision for loan losses was $58.2 million for the third quarter of 2012, an increase of $27.1 million, or 88%, compared to $31.1 million for the same period of 2011. The increase was principally attributable to the higher level of interest earning assets and the improvement in the net interest margin following the merger. The net interest margin increased to 4.79% for the third quarter of 2012, compared to 4.29% for the same period of 2011. The increase was principally due to the effect of acquisition accounting adjustments.

Interest income for the third quarter of 2012 was $65.5 million, an increase of $26.5 million, or 68%, compared to $38.9 million for the same period of 2011. The increase resulted from a $28.2 million increase in interest income due to an increase in average interest-earning assets, which was partially offset by a $1.7 million decrease in interest income due to a decrease in the yield on average interest-earnings assets.

Interest expense for the third quarter of 2012 was $7.2 million, a decrease of $0.7 million, or 8%, compared to interest expense of $7.9 million for the same period of 2011. The decrease resulted from a $3.6 million decrease in interest expense due to a decrease in the rates paid on average interest-bearing liabilities, which was partially offset by a $2.9 million increase in interest expense due to an increase in average interest-bearing liabilities.

Comparison of Nine Months Ended September 30, 2012 with the Same Period of 2011

Net interest income before provision for loan losses was $178.6 million for the nine months ended September 30, 2012, an increase of $89.3 million, or 100%, compared to $89.3 million for the same period of 2011. The increase was principally due to the higher level of interest earning assets and the improvement in the net interest margin following the merger.

Interest income for the nine months ended September 30, 2012 was $201.0 million, an increase of $87.6 million, or 77%,

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compared to $113.4 million for the same period of 2011. The increase resulted from a $2.6 million increase in interest income due to an increase in the yield on average interest-earnings assets and a $85.0 million increase in interest income due to an increase in average interest-earning assets.

Interest expense for the nine months ended September 30, 2012 was $22.4 million, a decrease of $1.7 million, or 7%, compared to interest expense of $24.1 million for the same period of 2011. The decrease resulted from a $10.1 million decrease in interest expense due to a decrease in the average rates paid on interest-bearing liabilities, which was partially offset by an $8.4 million increase in interest expense due to an increase in average interest-bearing liabilities.

Net Interest Margin

The net interest margin for the third quarter of 2012 was 4.79%, an increase of 50 basis points from 4.29% for the same period of 2011. Net interest margin for the nine months ended September 30, 2012 was 4.97%, an increase of 77 basis points from 4.20% for the same period of 2011. The improvement in net interest margin was principally due to the effect of acquisition accounting adjustments, as summarized in the following table.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Net interest margin, excluding the effect of acquisition accounting adjustments	4.14	%	4.29	%	4.29	%	4.20	%
Acquisition accounting adjustments (1)	0.65		0.00		0.68		0.00
Reported net interest margin	4.79	%	4.29	%	4.97	%	4.20	%
(1)  Acquisition accounting adjustments is calculated by subtracting net interest margin, excluding effect of acquisition accounting adjustments, from reported net interest margin.

Excluding the effect of acquisition accounting adjustments, the net interest margin for the third quarter of 2012 decreased 15 basis points to 4.14% compared to the net interest margin for the same period of 2011. The decrease was primarily due to continued pricing pressure on loan interest rates which was partially offset by decreases in the rates paid on deposits and borrowings. Excluding the effect of acquisition accounting adjustments, the interest margin for the nine months ended September 30, 2012 increased 9 basis points to 4.29% compared to the net interest margin for the same period of 2011. The increase was principally due to the decrease in the weighted average cost of deposits and borrowings.

The weighted average yield on loans decreased to 6.11% for the third quarter of 2012 from 6.16% for the third quarter of 2011. The weighted average yield on loans increased to 6.46% for the nine months ended September 30, 2012 from 6.14% for the same period of 2011. The change in the yield is largely attributable to the accretion of discounts on acquired loans, as summarized in the following table.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
The weighted average yield on loans, excluding the effect of acquisition accounting adjustments	5.39	%	6.16	%	5.53	%	6.14	%
Acquisition accounting adjustments (1)	0.72		0.00		0.93		0.00
Reported weighted average yield on loans	6.11	%	6.16	%	6.46	%	6.14	%
(1)  Acquisition accounting adjustments is calculated by subtracting the weighted average yield on loans, excluding effect of acquisition accounting adjustments, from reported weighted average yield on loans.

Excluding the accretion of discounts on acquired loans, the weighted average yield on loans for the third quarter of 2012 decreased 77 basis points to 5.39% compared to the weighted average yield on loans for the same period of 2011. Excluding the accretion of discounts on acquired loans, the weighted average yield on loans for the nine months ended September 30, 2012 decreased 61 basis points to 5.53% compared to the weighted average yield on loans for the same period of 2011. These decreases were primarily due to the lower yields on the acquired loan portfolio and, to a lesser extent, continued pricing pressures in the market place. At September 30, 2012, fixed rate loans accounted for 38% of the loan portfolio, compared to 44% at September 30, 2011, reflecting the Company's focus on variable rate business loans. The weighted average yield on the

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variable rate and fixed rate loan portfolios (excluding loan discount accretion) at September 30, 2012 was 4.57% and 5.97%, respectively, compared with 4.60% and 6.25% at September 30, 2011.

The weighted average yield on securities available for sale for the third quarter of 2012 was 2.23% compared to 3.16% for the same period of 2011. The weighted average yield on securities available for sale for the nine months ended September 30, 2012 was 2.47% compared to 3.10% for the same period of 2011. The decreases were primarily attributable to the replacement of maturing securities with lower yielding investments as market interest rates declined.

The weighted average cost of deposits for the third quarter of 2012 was 0.52%, a decrease of 36 basis points from 0.88% for the same period of 2011. The weighted average cost of deposits for the nine months ended September 30, 2012 was 0.54%, a decrease of 38 basis points from 0.92% for the same period of 2011. The amortization of premium on time deposits assumed in the Merger positively affected the weighted average cost of deposits, as summarized in the following table.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
The weighted average cost of deposits, excluding effect of acquisition accounting adjustments	0.59	%	0.88	%	0.64	%	0.92	%
Acquisition accounting adjustments (1)	(0.07	)	0.00		(0.10	)	0.00
Reported weighted average cost of deposits	0.52	%	0.88	%	0.54	%	0.92	%
(1)  Acquisition accounting adjustments is calculated by subtracting the weighted average cost of deposits, excluding effect of acquisition accounting adjustments, from reported weighted average cost of deposits.

Excluding amortization of premium on time deposits assumed from merger, the weighted average cost of deposits was 0.59% for the third quarter of 2012, compared to 0.88% for the same period of 2011. Excluding amortization of premium on time deposits assumed from merger, the weighted average cost of deposits was 0.64% for the nine months ended September 30, 2012, compared to 0.92% for the same period of 2011. The decreases were due to reductions in the cost of interest-bearing demand deposits and an increase in the proportion of non-interest bearing demand deposits to total deposits. Non-interest bearing demand deposits accounted for 27% of total deposits at September 30, 2012, compared with 20% at September 30, 2011.

The weighted average cost of FHLB advances for the third quarter of 2012 was 1.56%, a decrease of 167 basis points from 3.23% for the same period of 2011. The weighted average cost of FHLB advances for the nine months ended September 30, 2012 was 1.79%, a decrease of 143 basis points from 3.22% for the same period of 2011. The decreases were attributable to decreases in FHLB advance rates and the amortization of premiums on FHLB borrowings assumed in the Merger, as summarized in the following table.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
The weighted average cost on FHLB advances, excluding effect of acquisition accounting adjustments	1.87	%	3.23	%	2.72	%	3.22	%
Acquisition accounting adjustments	(0.31	)	0.00		(0.93	)	0.00
Reported weighted average cost on FHLB advances	1.56	%	3.23	%	1.79	%	3.22	%
(1)  Acquisition accounting adjustments is calculated by subtracting the weighted average cost on FHLB advances, excluding effect of acquisition accounting adjustments, from reported weighted average cost on FHLB advances.

Excluding amortization of premiums on FHLB borrowings assumed in the Merger, the weighted average cost of FHLB advances decreased to 1.87% for the third quarter of 2012 from 3.23% for the same period of 2011, reflecting the addition of $175.0 million in new FHLB borrowings at a rate of 0.54%, which was substantially lower than the weighted average rate of the rest of the borrowings. The weighted average original maturity of the new borrowings was 2.10 years. In addition, a total of $85.0 million of FHLB borrowings, with weighted average rates of 1.64%, matured during the quarter.

Excluding amortization of premiums on FHLB borrowings assumed in the Merger, the weighted average cost of FHLB advances decreased to 2.72% for the nine months ended September 30, 2012 compared with 3.22% for the same period of

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2011. The decrease was attributed to decreases in FHLB advance rates.

Prepayment penalty income for the third quarter of 2012 and 2011 was $119 thousand and $175 thousand, respectively. Non-accrual interest income (reversed) recognized was ($44) thousand and $154 thousand for the third quarter of 2012 and 2011, respectively. Excluding the effects of both non-accrual loan interest income and prepayment penalty income, the net interest margin for third quarter 2012 and 2011 would have been as 4.78% and 4.24%, respectively.

Prepayment penalty income for the nine months ended September 30, 2012 and 2011 was $433 thousand and $438 thousand, respectively. Non-accrual interest income reversed was $793 thousand and $184 thousand for the nine months ended September 30, 2012 and 2011, respectively. Excluding the effects of both non-accrual loan interest income and prepayment penalty income, the net interest margin for the nine months ended September 30, 2012 and 2011 would have been as 4.98% and 4.18%, respectively.

The following table presents our condensed consolidated average balance sheet information, together with interest rates earned and paid on the various sources and uses of funds for the periods indicated:

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	Three months ended September 30, 2012						Three months ended September 30, 2011
	Average Balance		Interest Income/ Expense		Average Yield/ Rate *		Average Balance		Interest Income/ Expense		Average Yield/ Rate *
	(Dollars in thousands)
INTEREST EARNINGS ASSETS:
Loans(1) (2)	$	4,007,402	$	61,553	6.11	%	$	2,248,544	$	34,902	6.16	%
Securities available for sale(3)	679,764		3,782		2.23	%	486,009		3,843		3.16	%
FRB and FHLB stock and other investments	155,590		120		0.30	%	142,306		182		0.51	%
Federal funds sold	0		0		N/A		0		0		N/A
Total interest earning assets	$	4,842,756	$	65,455	5.38	%	$	2,876,859	$	38,927	5.37	%
INTEREST BEARING LIABILITIES:
Deposits:
Demand, interest-bearing	$	1,156,915	$	1,775	0.61	%	$	701,109	$	1,490	0.84	%
Savings	184,219		820		1.77	%	126,231		764		2.40	%
Time deposits:
$100,000 or more	843,388		1,533		0.72	%	363,155		351		0.38	%
Other	672,861		1,086		0.64	%	607,193		2,372		1.55	%
Total time deposits	1,516,249		2,619		0.69	%	970,348		2,723		1.11	%
Total interest bearing deposits	2,857,383		5,214		0.73	%	1,797,688		4,977		1.10	%
FHLB advances	407,325		1,603		1.56	%	300,000		2,438		3.23	%
Other borrowings	40,407		407		3.95	%	37,816		459		4.75	%
Total interest bearing liabilities	3,305,115		$	7,224	0.87	%	2,135,504		$	7,874	1.46	%
Non-interest bearing demand deposits	1,104,996						477,120
Total funding liabilities / cost of funds	$	4,410,111			0.65	%	$	2,612,624			1.21	%
Net interest income/net interest spread			$	58,231	4.51	%			$	31,053	3.91	%
Net interest margin					4.79	%					4.29	%
Net interest margin, excluding the effect of non-accrual loan income (expense)(4)					4.79	%					4.27	%
Net interest margin, excluding the effect of non-accrual loan income (expense) and prepayment fee income(4) (5)					4.78	%					4.24	%
Cost of deposits:
Non-interest bearing demand deposits	$	1,104,996	$	0			$	477,120	$	0
Interest bearing deposits	2,857,383		5,214		0.73	%	1,797,688		4,977		1.10	%
Total deposits	$	3,962,379	$	5,214	0.52	%	$	2,274,808	$	4,977	0.88	%

 *    Annualized

(1) Interest income on loans includes loan fees.

(2) Average balances of loans are net of deferred loan fees and costs and include nonaccrual loans and loans held for sale.

(3) Interest income and yields are not presented on a tax-equivalent basis.

(4) Non-accrual interest income (reversed) recognized was ($44 thousand) and $154 thousand for the three months ended September 30, 2012 and 2011, respectively.

(5) Loan prepayment fee income excluded was $119 thousand and $175 thousand for the three months ended September 30, 2012 and 2011, respectively.

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	Nine months ended September 30, 2012						Nine months ended September 30, 2011
	Average Balance		Interest Income/ Expense		Average Yield/ Rate *		Average Balance		Interest Income/ Expense		Average Yield/ Rate *
	(Dollars in thousands)
INTEREST EARNINGS ASSETS:
Loans(1) (2)	$	3,878,080	$	187,476	6.46	%	$	2,202,535	$	101,137	6.14	%
Securities available for sale(3)	699,225		12,940		2.47	%	504,402		11,738		3.10	%
FRB and FHLB stock and other investments	205,540		459		0.29	%	137,473		540		0.52	%
Federal funds sold	15,136		78		0.68	%	0		0		N/A
Total interest earning assets	$	4,797,981	$	200,953	5.59	%	$	2,844,410	$	113,415	5.33	%
INTEREST BEARING LIABILITIES:
Deposits:
Demand, interest-bearing	$	1,191,213	$	5,748	0.64	%	$	697,513	$	4,500	0.86	%
Savings	189,322		2,571		1.81	%	126,375		2,202		2.33	%
Time deposits:
$100,000 or more	806,244		4,428		0.73	%	333,532		1,187		0.48	%
Other	682,903		3,115		0.61	%	623,579		7,309		1.57	%
Total time deposits	1,489,147		7,543		0.68	%	957,111		8,496		1.19	%
Total interest bearing deposits	2,869,682		15,862		0.74	%	1,780,999		15,198		1.14	%
FHLB advances	358,962		4,832		1.79	%	308,114		7,422		3.22	%
Other borrowings	45,981		1,667		4.77	%	45,113		1,528		4.47	%
Total interest bearing liabilities	3,274,625		$	22,361	0.93	%	2,134,226		$	24,148	1.51	%
Non-interest bearing demand deposits	1,037,152						418,024
Total funding liabilities / cost of funds	$	4,311,777			0.69	%	$	2,552,250			1.26	%
Net interest income/net interest spread			$	178,592	4.68	%			$	89,267	3.82	%
Net interest margin					4.97	%					4.20	%
Net interest margin, excluding the effect of non-accrual loan income (expense)(4)					4.99	%					4.20	%
Net interest margin, excluding the effect of non-accrual loan income (expense) and prepayment fee income(4) (5)					4.98	%					4.18	%
Cost of deposits:
Non-interest bearing demand deposits	$	1,037,152	$	0			$	418,024	$	0
Interest bearing deposits	2,869,682		15,862		0.74	%	1,780,999		15,198		1.14	%
Total deposits	$	3,906,834	$	15,862	0.55	%	$	2,199,023	$	15,198	0.92	%

*    Annualized

(1) Interest income on loans includes loan fees.

(2) Average balances of loans are net of deferred loan fees and costs and include nonaccrual loans and loans held for sale.

(3) Interest income and yields are not presented on a tax-equivalent basis.

(4) Non-accrual interest income reversed was $793 thousand and $184 thousand for the nine months ended September 30, 2012 and 2011, respectively.

(5) Loan prepayment fee income excluded was $433 thousand and $438 thousand for the nine months ended September 30, 2012 and 2011, respectively.

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Changes in net interest income are a function of changes in interest rates and volumes of interest-earning assets and interest-bearing liabilities. The following table sets forth information regarding the changes in interest income and interest expense for the periods indicated. The total change for each category of interest-earning assets and interest-bearing liabilities is segmented into the change attributable to variations in volume (changes in volume multiplied by the old rate) and the change attributable to variations in interest rates (changes in rates multiplied by the old volume). Nonaccrual loans are included in average loans used to compute this table.

	Three months ended September 30, 2012 over September 30, 2011
	Net Increase (Decrease)
				Change due to
				Rate			Volume
	(In thousands)
INTEREST INCOME:
Interest and fees on loans	$	26,651		$	(286	)	$	26,937
Interest on securities	(61		)	(1,332		)	1,271
Interest on FRB and FHLB stock and other investments	(62		)	(81		)	19
Total interest income	$	26,528		$	(1,699	)	$	28,227
INTEREST EXPENSE:
Interest on demand, interest bearing	$	285		$	(485	)	$	770
Interest on savings	56			(234		)	290
Interest on time deposits	(104		)	(1,260		)	1,156
Interest on FHLB advances	(835		)	(1,528		)	693
Interest on other borrowings	(52		)	(80		)	28
Total interest expense	$	(650	)	$	(3,587	)	$	2,937
Net Interest Income	$	27,178		$	1,888		$	25,290

	Nine months ended September 30, 2012 over September 30, 2011
	Net Increase (Decrease)
				Change due to
				Rate			Volume
	(In thousands)
INTEREST INCOME:
Interest and fees on loans	$	86,339		$	5,549		$	80,790
Interest on securities	1,202			(2,703		)	3,905
Interest on FRB and FHLB stock and other investments	(81		)	(293		)	212
Interest on federal funds sold	78			0			78
Total interest income	$	87,538		$	2,553		$	84,985
INTEREST EXPENSE:
Interest on demand, interest bearing	$	1,248		$	(1,368	)	$	2,616
Interest on savings	369			(569		)	938
Interest on time deposits	(953		)	(4,551		)	3,598
Interest on FHLB advances	(2,590		)	(3,705		)	1,115
Interest on other borrowings	139			103			36
Total interest expense	$	(1,787	)	$	(10,090	)	$	8,303
Net Interest Income	$	89,325		$	12,643		$	76,682

Provision for Loan Losses

The provision for loan losses reflects our judgment of the current period cost associated with credit risk inherent in our loan portfolio. The loan loss provision for each period is dependent upon many factors, including loan growth, net charge-offs, changes in the composition of the loan portfolio, delinquencies, assessments by management, third parties’ and regulators’ examination of the loan portfolio, the value of the underlying collateral for problem loans and the general economic conditions

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in our market areas. Specifically, the provision for loan losses represents the amount charged against current period earnings to achieve an allowance for loan losses that, in our judgment, is adequate to absorb probable incurred losses inherent in our loan portfolio. Periodic fluctuations in the provision for loan losses result from management’s assessment of the adequacy of theallowance for loan losses; however, actual loan losses may vary in material respects from current estimates. If the allowance for loan losses is inadequate, it may have a material adverse effect on our financial condition.

The provision for loan losses for the third quarter of 2012 was $6.9 million, an increase of $3.4 million, or 98%, from $3.5 million for the same period last year. The increase is primarily due to higher net charge-offs, strong loan growth and allowance needs related to increased concentration risk associated with the growth in the CRE portfolio. Net charge-offs increased to $6.5 million for the three months ended September 30, 2012, compared to $3.2 million for the same period last year.

The provision for loan losses for the nine months ended September 30, 2012 was $16.7 million, a decrease of $2.1 million, or 11%, from $18.8 million for the same period last year. The decrease primarily due to improvement in the credit quality of the loan portfolio. Net charge-offs decreased to $12.7 million for the nine months ended September 30, 2012, compared to $21.1 million for the same period of 2011.

See Note 7 of the Notes to Condensed Consolidated Financial Statements (unaudited) and Financial Condition-Loans Receivable and Allowance for Loan Losses for further discussion.

Non-interest Income

Non-interest income is primarily comprised of service fees on deposit accounts, fees received on trade finance letters of credit and net gains on sales of loans and securities available for sale.

Non-interest income for the third quarter of 2012 was $7.7 million, compared to $4.3 million for the same quarter of 2011, an increase of $3.4 million, or 80%. The increase was principally due to the Merger, which was partially offset by a $0.8 million reduction in net gains on sale of SBA loans from $0.8 million for the third quarter of 2011 to none for the third quarter of 2012.

Non-interest income for the nine months ended September 30, 2012 was $29.5 million, compared to $16.5 million for the same period of 2011, an increase of $13.1 million, or 79 %. The increase was principally due to the Merger. The $0.9 million increase in net gains on sales and calls of securities available for sale for the nine months ended September 30, 2012 as compared to the same period of 2011 was primarily due to an $816 thousand gain on the sale of a Trust Preferred security, which had been marked to market in a prior period.

Non-interest income by category is summarized below:

	Three Months Ended September 30,						Increase (Decrease)
	2012			2011			Amount			Percent (%)
	(Dollars in thousands)
Service fees on deposit accounts	$	3,121		$	1,352		$	1,769		130.8	%
International service fees	1,183			603			580			96.2	%
Loan servicing fees, net	1,031			464			567			122.2	%
Wire transfer fees	833			343			490			142.9	%
Other income and fees	1,364			534			830			155.4	%
Net gains on sales of SBA loans	0			823			(823		)	(100.0	)%
Net losses on sales of other loans	0			(30		)	30			100.0	%
Net gains on sales and calls of securities available for sale	133			64			69			107.8	%
Net valuation gains (losses) on interest rate contracts	11			(3		)	14			466.7	%
Net gains (losses) on sales of OREO	(12		)	108			(120		)	-111.1	%
Total non-interest income	$	7,664		$	4,258		$	3,406		80.0	%

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	Nine Months Ended September 30,					Increase (Decrease)
	2012		2011			Amount			Percent (%)
	(Dollars in thousands)
Service fees on deposit accounts	$	9,550	$	4,262		$	5,288		124.1	%
International service fees	3,810		1,842			1,968			106.8	%
Loan servicing fees, net	3,178		1,345			1,833			136.3	%
Wire transfer fees	2,349		1,013			1,336			131.9	%
Other income and fees	4,058		1,598			2,460			153.9	%
Net gains on sales of SBA loans	5,426		6,337			(911		)	(14.4	%)
Net gains (losses) on sales of other loans	146		(30		)	176			586.7	%
Net gains on sales and calls of securities available for sale	949		70			879			1,255.7	%
Net valuation gains (losses) on interest rate contracts	24		(120		)	144			120.0	%
Net gains on sales of OREO	41		135			(94		)	(69.6	%)
Total non-interest income	$	29,531	$	16,452		$	13,079		79.5	%

Non-interest Expense

Non-interest expense for the third quarter of 2012 was $28.8 million, an increase of $12.0 million, or 71%, from $16.8 million for the same period of 2011. The increase was principally due to the Merger. Salaries and benefits expense increased $6.0 million, or 78%, to $13.6 million for the third quarter of 2012, from $7.7 million for the same period of 2011. The increase was due to an increase in the number of full-time equivalent (FTE) employees, which increased to 684 at September 30, 2012 from 377 at September 30, 2011. The FTE employees as of September 30, 2011 on a pro forma basis was 696. Occupancy expense for the third quarter of 2012 rose 58% to $3.9 million from $2.5 million for the same period of 2011, principally due to the increased number branches post-merger. Credit related expenses for the third quarter of 2012 were $2.5 million, an increase of $1.6 million, or 188%, from $0.9 million for the same period of 2011. The increase was primarily due to OREO valuation allowances of $1.2 million and an increase in the number of OREO properties post-merger. The FDIC assessment for the third quarter of 2012 amounted to $644 thousand, compared with $983 thousand for the same period of 2011. This decrease reflects an upgrade of the Company's risk category.

Non-interest expense for the nine months ended September 30, 2012 was $90.3 million, an increase of $39.9 million, or 79%, from $50.4 million for the same period of 2011. The increase was principally due to the Merger. Salaries and benefits expense increased $19.9 million, or 89%, to $42.3 million for the the nine months ended September 30, 2012, compared to $22.4 million for the same period of 2011. The increase was due to an increase in the FTE employees post-merger.

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The breakdown of changes in non-interest expense by category is shown below:

	Three Months Ended September 30,				Increase (Decrease)
	2012		2011		Amount			Percent (%)
	(Dollars in thousands)
Salaries and employee benefits	$	13,611	$	7,657	$	5,954		77.8	%
Occupancy	3,910		2,480		1,430			57.7	%
Furniture and equipment	1,495		984		511			51.9	%
Advertising and marketing	1,159		354		805			227.4	%
Data processing and communications	1,659		813		846			104.1	%
Professional fees	876		612		264			43.1	%
FDIC assessment	644		983		(339		)	(34.5	)%
Credit related expenses	2,497		867		1,630			188.0	%
Merge and integration expenses	183		574		(391		)	(68.1	)%
Other	2,736		1,493		1,243			83.3	%
Total non-interest expense	$	28,770	$	16,817	$	11,953		71.1	%

	Nine Months Ended September 30,				Increase (Decrease)
	2012		2011		Amount			Percent (%)
	(Dollars in thousands)
Salaries and employee benefits	$	42,348	$	22,436	$	19,912		88.8	%
Occupancy	11,788		7,362		4,426			60.1	%
Furniture and equipment	4,181		2,853		1,328			46.5	%
Advertising and marketing	4,142		1,527		2,615			171.3	%
Data processing and communications	4,843		2,719		2,124			78.1	%
Professional fees	2,558		2,090		468			22.4	%
FDIC assessment	1,732		3,149		(1,417		)	(45.0	)%
Credit related expenses	6,967		2,615		4,352			166.4	%
Merge and integration expenses	3,304		1,465		1,839			125.5	%
Other	8,419		4,182		4,237			101.3	%
Total non-interest expense	$	90,282	$	50,398	$	39,884		79.1	%

Provision for Income Taxes

Income tax expense was $11.8 million and $5.2 million for the third quarter ended September 30, 2012 and 2011, respectively. The effective income tax rate for the quarters ended September 30, 2012 and 2011 was 39.1% and 34.6%, respectively. Income tax expense was $39.5 million and $13.7 million for the nine months ended September 30, 2012 and 2011, respectively. The effective income tax rate for the nine months ended September 30, 2012 and 2011 was 39.0% and 37.4%.

Financial Condition

At September 30, 2012, our total assets were $5.33 billion, an increase of $165.4 million from $5.17 billion at December 31, 2011. As previously discussed, the increase was principally due to a $326.7 million increase in loans receivable, net of allowance for loan losses, which was partially offset by decreases in cash and cash equivalents, term federal funds sold and securities available for sale of $70.5 million, $40.0 million and $53.9 million, respectively. The increase in total assets was funded by a $111.6 million increase in deposits, a $116.4 million increase in borrowings from the FHLB and net income available to common stockholders of $56.1 million. The increases in deposits and net income available to common shareholders were partially offset by the $122 million redemption of the Series A and Series B Perpetual Preferred Stock issued under the U.S. Treasury's TARP Capital Purchase Program in June 2012

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Investment Securities Portfolio

As of September 30, 2012, we had $687.1 million in available-for-sale securities, compared to $740.9 million at December 31, 2011. The net unrealized gain on the available-for-sale securities at September 30, 2012 was $18.0 million, compared to a net unrealized gain on such securities of $15.2 million at December 31, 2011. During the nine months ended September 30, 2012, $111.7 million in securities were purchased, $134.7 million in mortgage related securities were paid down, $1.1 million in securities were either called or matured, and $27.5 million in securities were sold. We recognized net gains of $949 thousand on the securities that were sold. No securities were sold during the same period of last year. The weighted average duration (the weighted average of the times of the present values of all the cash flows) of the available-for-sale securities was 3.23 years and 3.54 years at September 30, 2012 and December 31, 2011, respectively. The weighted average life (the weighted average of the times of the principal repayments) of the available-for-sale securities was 3.47 years and 3.91 years at September 30, 2012 and December 31, 2011, respectively.

Loan Portfolio

As of September 30, 2012, gross loans outstanding, net of deferred loan fees and costs and excluding loans held for sale, was $4.07 billion, an increase of $330.7 million from $3.74 billion at December 31, 2011. Total loan originations during the nine months ended September 30, 2012 were $721.8 million, including SBA loan originations of $165.4 million, compared to $319.6 million during the same period of 2011.

The following table summarizes our loan portfolio by amount and percentage of gross loans in each major loan category at the dates indicated:

	September 30, 2012					December 31, 2011
	Amount			Percent		Amount			Percent
				(Dollars in thousands)
Loan portfolio composition
Real estate loans:
Residential	$	3,354		0	%	$	2,043		0	%
Commercial & industrial	2,881,079			71	%	2,631,880			70	%
Construction	56,433			1	%	44,756			1	%
Total real estate loans	2,940,866			72	%	2,678,679			73	%
Commercial business	898,977			22	%	849,576			23	%
Trade finance	177,285			4	%	146,684			4	%
Consumer and other	54,442			1	%	66,631			2	%
Total loans outstanding	4,071,570			100	%	3,741,570			100	%
Less: deferred loan fees	(2,076		)			(2,744		)
Gross loans receivable	4,069,494					3,738,826
Less: allowance for loan losses	(65,952		)			(61,952		)
Loans receivable, net	$	4,003,542				$	3,676,874

SBA loans, consisting principally of the unguaranteed portion, are included in commercial business loans and commercial and industrial real estate loans. SBA loans included in commercial business loans were $84.3 million at September 30, 2012 and $81.6 million at December 31, 2011. SBA loans included in commercial and industrial real estate loans were $148.7 million at September 30, 2012 and $152.5 million at December 31, 2011.

We normally do not extend lines of credit or make loan commitments to business customers for periods in excess of one year. We use the same credit policies in making commitments and conditional obligations as we do for providing loan facilities to our customers. We perform annual reviews of such commitments prior to renewal.

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The following table shows our loan commitments and letters of credit outstanding at the dates indicated:

	September 30, 2012		December 31, 2011
	(In thousands)
Loan commitments	$	571,150	$	458,096
Standby letters of credit	37,599		29,028
Other commercial letters of credit	53,932		49,457
	$	662,681	$	536,581

Nonperforming Assets

Nonperforming assets, which include non-accrual loans, loans past due 90 days or more and accruing, restructured loans, and other real estate owned, were $78.1 million at September 30, 2012, compared to $74.9 million at December 31, 2011. The ratio of nonperforming assets to gross loans plus OREO was 1.92% and 2.00% at September 30, 2012 and December 31, 2011, respectively.

The following table summarizes the composition of our nonperforming assets as of the dates indicated.

	September 30, 2012			December 31, 2011
	(Dollars in thousands)
Nonaccrual loans	$	29,369		$	31,213
Delinquent loans 90 days or more on accrual status	22,454			17,265
Accruing restructured loans	22,175			18,776
Total Nonperforming Loans	73,998			67,254
Other real estate owned	4,135			7,625
Total Nonperforming Assets	$	78,133		$	74,879
Nonperforming loans to total gross loans, excluding loans held for sale	1.82		%	1.80		%
Nonperforming assets to gross loans plus OREO	1.92		%	2.00		%
Nonperforming assets to total assets	1.47		%	1.45		%
Allowance for loan losses to non-performing loans (excludes delinquent loans 90 days or more on accrual status)	127.95		%	123.93		%
Allowance for loan losses to non-performing assets	84.41		%	82.74		%

Allowance for Loan Losses

The allowance for loan losses was $66.0 million at September 30, 2012, compared to $62.0 million at December 31, 2011. We recorded a provision for loan losses of $16.7 million during the nine months ended September 30, 2012, compared to $18.8 million for the same period of 2011. The allowance for loan losses was 1.62% of gross loans at September 30, 2012 and 1.66% of gross loans at December 31, 2011. Impaired loans as defined by FASB ASC 310-10-35, “Accounting by Creditors for Impairment of a Loan,” totaled $82.3 million and $82.0 million as of September 30, 2012 and December 31, 2011, respectively, with specific allowances of $8.7 million and $18.0 million, respectively.

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The following table reflects our allocation of the allowance for loan and lease losses ("ALLL") by loan type and the ratio of each loan category to total loans as of the dates indicated:

	Allocation of Allowance for Loan Losses
	September 30, 2012				December 31, 2011
	Amount of allowance for loan losses		Percent of loans to total loans		Amount of allowance for loan losses		Percent of loans to total loans
	(Dollars in thousands)
Loan Type
Real estate - Residential	$	32	0	%	$	9	0	%
Real estate - Commercial	43,828		71	%	38,307		70	%
Real estate - Construction	808		1	%	724		1	%
Commercial business	17,647		22	%	20,681		23	%
Trade finance	2,852		5	%	1,786		4	%
Consumer and other	785		1	%	445		2	%
Total	$	65,952	100	%	$	61,952	100	%

For a better understanding of the changes in the ALLL, the loan portfolio has been segmented for disclosures purposes between loans, which are accounted for under the amortized cost method (referred to as "Legacy Loans") and loans acquired from Center (referred to as "Acquired Loans"). The Acquired Loans were further segregated between Credit Impaired Loans (loans with credit deterioration at the time of the Merger and accounted for under ASC 310-30) and performing loans (loans that were pass graded at the time of the Merger). The activity in the ALLL for the three and nine months ended September 30, 2012 is as follows:

				Acquired Loans (2)
For three months	Legacy Loans (1)			Credit Impaired Loans			Performing Loans			Total
	(Dollars in thousands)
Balance, beginning of period	$	62,396		$	1,914		$	1,195		$	65,505
Provision for loan losses	5,574			198			1,128			6,900
Loans charged off	(7,408		)	0			(361		)	(7,769		)
Recoveries of charged offs	1,272			0			44			1,316
Balance, end of period	$	61,834		$	2,112		$	2,006		$	65,952
Gross loans, net of deferred loan fees and costs	$	3,098,496		155,712			817,362			$	4,071,570
Loss coverage ratio	2.00		%	1.36		%	0.25		%	1.62		%

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				Acquired Loans (2)
For nine months	Legacy Loans (1)			Credit Impaired Loans		Performing Loans			Total
	(Dollars in thousands)
Balance, beginning of period	$	61,952		$	0	$	0		$	61,952
Provision for loan losses	11,558			2,112		3,012			16,682
Loans charged off	(15,051		)	0		(1,710		)	(16,761		)
Recoveries of charged offs	3,375			0		704			4,079
Balance, end of period	$	61,834		$	2,112	$	2,006		$	65,952
(1)  Legacy Loans includes acquired loans that have been renewed or refinanced after the merger.
(2)  Acquired loans were marked to fair value at the acquisition date, and provisions for loan losses reflect credit deterioration since the acquisition date.

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The following table shows the provisions made for loan losses, the amount of loans charged off and the recoveries on loans previously charged off, together with the balance in the allowance for loan losses at the beginning and end of each period, the amount of average and gross loans outstanding, and certain other ratios as of the dates and for the periods indicated:

	At or for the Nine Months Ended September 30,
	2012			2011
	(Dollars in thousands)
LOANS
Average gross loans receivable, including loans held for sale (net of deferred fees)	$	3,878,080		$	2,202,535
Total gross loans receivables, excluding loans held for sale (net of deferred fees)	$	4,069,494		$	2,257,667
ALLOWANCE:
Balance-beginning of period	$	61,952		$	62,320
Less: Loan charge-offs:
Residential real estate	0			0
Commercial & industrial real estate	(6,506		)	(14,938		)
Construction	0			(3,254		)
Commercial business loans	(9,225		)	(6,023		)
Trade finance	(300		)	0
Consumer and other loans	(729		)	(256		)
Total loans charged off	(16,760		)	(24,471		)
Plus: Loan recoveries
Commercial & industrial real estate	2,404			1,200
Commercial business loans	1,287			1,937
Trade Finance	60			0
Consumer and other loans	327			231
Total loans recoveries	4,078			3,368
Net loan charge-offs	(12,682		)	(21,103		)
Provision for loan losses	16,682			18,792
Balance-end of period	$	65,952		$	60,009
Net loan charge-offs to average gross loans, including loans held for sale (net of deferred fees) *	0.44		%	1.28		%
Allowance for loan losses to gross loans at end of period	1.62		%	2.66		%
Net loan charge-offs to beginning allowance *	27.29		%	45.15		%
Net loan charge-offs to provision for loan losses	76.02		%	112.30		%
* Annualized

We believe the allowance for loan losses as of September 30, 2012 is adequate to absorb probable incurred losses in the loan portfolio. However, no assurance can be given that actual losses will not exceed the estimated amounts.

Deposits and Other Borrowings

Deposits. Deposits are our primary source of funds used in our lending and investment activities. At September 30, 2012, deposits increased $111.6 million, or 3%, to $4.05 billion from $3.94 billion at December 31, 2011. Retail deposits totaled $3.49 billion at September 30, 2012, a decrease of $67 million from $3.56 billion at December 31, 2011. Interest-bearing demand deposits, including money market and Super Now accounts, totaled $1.33 billion at September 30, 2012, a decrease of $104 million from $1.44 billion at December 31, 2011. The decrease reflected the deposit mix shift to non-interest bearing deposits, which increased to $1.11 billion at September 30, 2012, from $984 million at December 31, 2011.

At September 30, 2012, 27.2% of total deposits were non-interest bearing demand deposits, 39.9% were time deposits and 32.9% were interest bearing demand and savings deposits. By comparison, at December 31, 2011, 25.0% of total deposits were non-interest bearing demand deposits, 38.6% were time deposits, and 36.4% were interest bearing demand and saving deposits.

At September 30, 2012, we had $259.2 million in wholesale deposits and $300.0 million in California State Treasurer

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deposits, compared to $80.7 million and $300.0 million of such deposits at December 31, 2011, respectively. The California State Treasurer deposits had three-month maturities with a weighted average interest rate of 0.13% at September 30, 2012 and were collateralized with securities with a carrying value of $348.4 million. The weighted average interest rate for wholesale deposits was 0.34% at September 30, 2012.

The following is a schedule of CD maturities as of September 30, 2012:

Maturity Schedule of Time Deposits

(Dollars in thousands)

			Weighted Average
Quarter Ending	Balance		Interest Rate
December 31, 2012	$	751,628	0.57	%
March 31, 2013	329,130		1.04	%
June 30, 2013	222,070		0.97	%
September 30, 2013	213,164		0.90	%
Total one year or less	1,515,992		0.78	%
Over one year	100,358		1.23	%
Total time deposits	$	1,616,350	0.80	%

Other Borrowings. Advances may be obtained from the FHLB as an alternative source of funds. Advances from the FHLB are typically secured by a pledge of commercial real estate loans and/or securities with a market value at least equal to the outstanding advances plus our investment in FHLB stock.

At September 30, 2012, we had $460.8 million of FHLB advances with average remaining maturities of 2.0 years, compared to $344.4 million with average remaining maturities of 1.3 years at December 31, 2011. The weighted average rate, including the acquisition accounting adjustments was 1.33% and 1.93% at September 30, 2012 and at December 31, 2011, respectively.

During the second quarter of 2012, we retired a $10.0 million Trust Preferred Security (Nara Bancorp Capital Trust I), bearing a 10.18% interest rate. At September 30, 2012 , five wholly-owned subsidiary grantor trusts ("Trusts") established by us had issued $46 million of pooled trust preferred securities (“Trust Preferred Securities”). The Trust Preferred Securities accrue and pay distributions periodically at specified annual rates as provided in the related indentures for the securities. The Trusts used the net proceeds from their respective offerings to purchase a like amount of subordinated debentures (the “Debentures”) issued by us. The Debentures are the sole assets of the trusts. Our obligations under the Debentures and related documents, taken together, constitute a full and unconditional guarantee by us of the obligations of the trusts. The Trust Preferred Securities are mandatorily redeemable upon the maturity of the Debentures, or upon earlier redemption as provided in the indentures. We have the right to redeem the Debentures in whole (but not in part) on or after specific dates, at redemption prices specified in the indentures plus any accrued but unpaid interest to the redemption date.

Off-Balance-Sheet Activities and Contractual Obligations

We routinely engage in activities that involve, to varying degrees, elements of risk that are not reflected, in whole or in part, in the consolidated financial statements. These activities are part of our normal course of business and include traditional off-balance-sheet credit-related financial instruments, interest rate swap contracts, operating leases and long-term debt.

Traditional off-balance-sheet credit-related financial instruments are primarily commitments to extend credit and standby letters of credit. These activities could require us to make cash payments to third parties if certain specified future events occur. The contractual amounts represent the extent of our exposure in these off-balance-sheet activities. However, since certain off-balance-sheet commitments, particularly standby letters of credit, are expected to expire or be only partially used, the total amount of commitments does not necessarily represent future cash requirements. These activities are necessary to meet the financing needs of our customers.

We enter into interest rate swap contracts under which we are required to either receive cash from or pay cash to counterparties depending on changes in interest rates. We also purchase interest rate caps to protect against increases in market interest rates. We utilize interest rate swap contracts and interest rate caps to help manage the risk of changing interest rates.

We do not anticipate that our current off-balance-sheet activities will have a material impact on our future results of operations or our financial condition. Further information regarding our financial instruments with off-balance-sheet risk can be found in Item 3 “Quantitative and Qualitative Disclosures about Market Risk”.

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Our leased banking facilities and equipment are leased under non-cancelable operating leases under which we must make monthly payments over periods up to 20 years.

Stockholders’ Equity and Regulatory Capital

Historically, our primary source of capital has been the retention of earnings, net of dividend payments to shareholders. We seek to maintain capital at a level sufficient to assure our stockholders, our customers, and our regulators that our company and our bank subsidiary are financially sound. For this purpose, we perform ongoing assessments of our components of capital as well as projected sources and uses of capital in conjunction with projected increases in assets and levels of risks.

Total stockholders’ equity was $734.5 million at September 30, 2012 compared to $795.9 million at December 31, 2011. The decrease was primarily due to the redemption of $122 million of Series A and Series B Preferred Stock issued under the U.S. Treasury's TARP Capital Purchase Program in June 2012, which was partially offset by the net income to common stockholders of $56.1 million for the nine months ended September 30, 2012. Our ratio of tangible common equity to tangible assets was 12.23% at September 30, 2012, compared to 11.42% at December 31, 2011. The increase was attributable to the increase in common stockholders' equity.

The federal banking agencies require a minimum ratio of qualifying total capital to risk-weighted assets of 8% and a minimum ratio of Tier I capital to risk-weighted assets of 4%. In addition to the risk-based guidelines, federal banking regulators require banking organizations to maintain a minimum amount of Tier I capital to average total assets, referred to as the leverage ratio. Capital requirements apply to the Company and the Bank separately. In addition to these uniform risk-based capital guidelines and leverage ratios that apply across the industry, the regulators have the discretion to set individual minimum capital requirements for specific institutions at rates significantly above the minimum guidelines and ratios.

At September 30, 2012, our Tier I capital, defined as stockholders’ equity less intangible assets, plus proceeds from the trust preferred securities (subject to limitations), was $668.7 million, compared to $733.3 million at December 31, 2011, representing an increase of $64.6 million, or 9%. The decrease was primarily due to the redemption of $122 million of Series A and Series B Preferred Stock issued under the U.S. Treasury's TARP Capital Purchase Program in June 2012. At September 30, 2012, the total capital to risk-weighted assets ratio was 16.48% and the Tier I capital to risk-weighted assets ratio was 15.22%. The Tier I leverage capital ratio was 13.15%.

As of September 30, 2012 and December 31, 2011, the most recent regulatory notification categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier I risk-based and Tier I leverage capital ratios as set forth in the table below.

	As of September 30, 2012 (Dollars in thousands)
	Actual				To Be Well-Capitalized				Excess
	Amount		Ratio		Amount		Ratio		Amount		Ratio
BBCN Bancorp, Inc
Tier 1 capital to total assets	$	668,710	13.2	%	N/A		N/A
Tier 1 risk-based capital ratio	$	668,710	15.2	%	N/A		N/A
Total risk-based capital ratio	$	723,954	16.5	%	N/A		N/A
BBCN Bank
Tier I capital to total assets	$	647,616	12.7	%	$	254,134	5.0	%	$	393,482	7.7	%
Tier 1 risk-based capital ratio	$	647,616	14.8	%	$	263,407	6.0	%	$	384,209	8.8	%
Total risk-based capital ratio	$	702,825	16.0	%	$	439,011	10.0	%	$	263,814	6.0	%
	As of December 31, 2011 (Dollars in thousands)
	Actual				To Be Well-Capitalized				Excess
	Amount		Ratio		Amount		Ratio		Amount		Ratio
BBCN Bancorp, Inc
Tier 1 capital to total assets	$	733,319	19.8	%	N/A		N/A
Tier 1 risk-based capital ratio	$	733,319	18.2	%	N/A		N/A
Total risk-based capital ratio	$	784,054	19.4	%	N/A		N/A
BBCN Bank
Tier I capital to total assets	$	670,855	18.1	%	$	185,048	5.0	%	$	485,807	13.1	%
Tier 1 risk-based capital ratio	$	670,855	16.6	%	$	242,168	6.0	%	$	428,687	10.6	%
Total risk-based capital ratio	$	721,551	17.9	%	$	403,613	10.0	%	$	317,938	7.9	%

65

Liquidity Management

Liquidity risk is the risk of reduction in our earnings or capital that would result if we were not able to meet our obligations when they come due without incurring unacceptable losses. Liquidity risk includes the risk of unplanned decreases or changes in funding sources and changes in market conditions that affect our ability to liquidate assets quickly and with minimum loss of value. Factors considered in liquidity risk management are the stability of the deposit base; the marketability, maturity, and pledging of our investments; the availability of alternative sources of funds; and our demand for credit. The objective of our liquidity management is to have funds available to meet cash flow requirements arising from fluctuations in deposit levels and the demands of daily operations, which include funding of securities purchases, providing for customers' credit needs, and ongoing repayment of borrowings.

Our primary sources of liquidity are derived from financing activities, which include customer and broker deposits, federal funds facilities, and borrowings from the Federal Home Loan Bank of San Francisco and the Federal Reserve Bank Discount Window. These funding sources are augmented by payments of principal and interest on loans and securities, proceeds from sale of loans and the liquidation or sale of securities from our available for sale portfolio. Primary uses of funds include withdrawal of and interest payments on deposits, originations of loans, purchases of investment securities, and payment of operating expenses.

At September 30, 2012, our total borrowing capacity from the Federal Home Loan Bank of San Francisco was $1.3 billion, of which $837 million was unused and available to borrow. At September 30, 2012, our total borrowing capacity from the Federal Reserve Bank was $378 million, of which $378 million was unused and available to borrow. In addition to these lines, our liquid assets, consisting of cash and cash equivalent, interest-bearing cash deposits with other banks, overnight federal funds sold to other banks, liquid investment securities available for sale, and loan repayments within 30 days, were $634.5million at September 30, 2012 compared to $689.8 million at December 31, 2011. Cash and cash equivalents, including federal funds sold were $229.6 million at September 30, 2012 compared to $300.1 million at December 31, 2011. We believe our liquidity sources to be stable and adequate to meet our day-to-day cash flow requirements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The objective of our asset and liability management activities is to improve our earnings by adjusting the type and mix of assets and liabilities to effectively address changing conditions and risks. Through overall management of our balance sheet and by controlling various risks, we seek to optimize our financial returns within safe and sound parameters. Our operating strategies for attaining this objective include managing net interest margin through appropriate risk/return pricing of assets and liabilities and emphasizing growth in retail deposits, as a percentage of interest-bearing liabilities, to reduce our cost of funds. We also seek to improve earnings by controlling non-interest expense, and enhancing non-interest income. We also use risk management instruments to modify interest rate characteristics of certain assets and liabilities to hedge against our exposure to interest rate fluctuations with the objective of, reducing the effects these fluctuations might have on associated cash flows or values. Finally, we perform internal analysis to measure, evaluate and monitor risk.

Interest Rate Risk

Interest rate risk is the most significant market risk impacting us. Interest rate risk occurs when interest rate sensitive assets and liabilities do not reprice simultaneously and in equal volume. A key objective of asset and liability management is to manage interest rate risk associated with changing asset and liability cash flows and values of our assets and liabilities and market interest rate movements. The management of interest rate risk is governed by policies reviewed and approved annually by the Board of Directors. Our Board delegates responsibility for interest rate risk management to the Asset Liability Committee of the Board ("ALCO") and to the Asset and Liability Management Committee (“ALM”), which is composed of BBCN Bank’s senior executives and other designated officers.

Market risk is the risk of adverse impacts on our future earnings, the fair values of our assets and liabilities, or our future cash flows that may result from changes in the price of a financial instrument. The fundamental objective of our ALM is to manage our exposure to interest rate fluctuations while maintaining adequate levels of liquidity and capital. Our ALM meets regularly to monitor interest rate risk, the sensitivity of our assets and liabilities to interest rate changes, the book and market values of our assets and liabilities, and our investment activities. It also directs changes in the composition of our assets and liabilities . Our strategy has been to reduce the sensitivity of our earnings to interest rate fluctuations by more closely matching the effective maturities or repricing characteristics of our assets and liabilities. Certain assets and liabilities, however, may react in different degrees to changes in market interest rates. Furthermore, interest rates on certain types of assets and liabilities may fluctuate prior to changes in market interest rates, while interest rates on other types may lag behind. We consider the anticipated effects of these factors when implementing our interest rate risk management objectives.

Interest Rate Sensitivity

66

We monitor interest rate risk through the use of a simulation model that provides us with the ability to simulate our net interest income. In order to measure, at September 30, 2012, the sensitivity of our forecasted net interest income to changing interest rates, both rising and falling interest rate scenarios were projected and compared to base market interest rate forecasts. One application of our simulation model measures the impact of market interest rate changes on the net present value of estimated cash flows from our assets and liabilities, defined as our market value of equity. This analysis assesses the changes in market values of interest rate sensitive financial instruments that would occur in response to immediate and parallel changes in market interest rates.

The impacts on our net interest income and market value of equity exposed to immediate and parallel hypothetical changes in market interest rates as projected by the model we use for this purpose are illustrated in the following table.

	September 30, 2012				December 31, 2011
Simulated	Estimated Net Interest Income Sensitivity		Market Value Of Equity Volatility		Estimated Net Interest Income Sensitivity		Market Value Of Equity Volatility
Rate Changes
+ 200 basis points	6.02	%	(0.71	)%	5.46	%	(4.61	)%
+ 100 basis points	2.72	%	0.07	%	2.91	%	(1.84	)%
- 100 basis points	(0.61	)%	2.70	%	0.77	%	4.57	%
- 200 basis points	(0.89	)%	4.58	%	0.83	%	8.58	%

The results obtained from using the simulation model are somewhat uncertain as the model does not take into account other impacts or changes and the effect they could have on Company’s business or changes in business strategy the Company might make in reaction to changes in the interest rate environment.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We conducted an evaluation under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) for the period ended September 30, 2012. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer determined that our disclosure controls and procedures were effective.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting during the quarter ended September 30, 2012 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

67

PART II

OTHER INFORMATION

Item 1. Legal Proceedings

BBCN has received communications from the Small Business Administration ("SBA") asserting that the SBA is entitled to receive from BBCN a portion of the amounts to be paid to BBCN by the FDIC in respect of SBA loans that are covered by the FDIC loss share agreements. The amounts claimed by the SBA with respect to covered SBA loans are based on the SBA's guarantee percentage of the individual covered loans referred to in the communications. An aggregate of $55 million of SBA loans were subject to the loss share agreements at inception. BBCN disagrees with the SBA's position. The discussions with the SBA regarding this matter are at an early stage and BBCN is not presently able to determine the probable outcome.

Item 1A. Risk Factors

There were no material changes from risk factors previously disclosed in our 2011 Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None

Item 3. Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

None

Item 5. Other Information

None

Item 6. Exhibits

See “Index to Exhibits”.

68

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		BBCN BANCORP, INC.
Date:	November 7, 2012	/s/ Alvin D. Kang
		Alvin D. Kang
		President and Chief Executive Officer
Date:	November 7, 2012
		/s/ Philip E. Guldeman
		Philip E. Guldeman
		Executive Vice President and Chief Financial Officer

69

INDEX TO EXHIBITS

Exhibit Number	Description
3.1	Certificate of Incorporation of the Company, filed with the Delaware Secretary of State on June 5, 2000 (incorporated herein by reference to the Registration Statement on Form S-4 filed with the Securities and Exchange Commission (“SEC”) on November 16, 2000)
3.2	Certificate of Amendment of Certificate of Incorporation of the Company, filed with the Delaware Secretary of State on May 31, 2002 (incorporated herein by reference to the Registration Statement on Form S-8 Exhibit 3.3 filed with the SEC on February 5, 2003)
3.3	Certificate of Amendment of Certificate of Incorporation of the Company, filed with the Delaware Secretary of State on June 1, 2004 (incorporated herein by reference to the Registration Statement on Form 10-Q Exhibit 3.1.1 filed with the SEC on November 8, 2004)
3.4	Certificate of Amendment of Certificate of Incorporation of the Company, filed with the Delaware Secretary of State on November 2, 2005 (incorporated herein by reference to the Registration Statement on DEF14 A, Appendix B filed with the SEC on September 6, 2005)
3.5	Certificate of Amendment of Certificate of Incorporation of the Company, filed with the Delaware Secretary of State on July 20, 2007 (incorporated herein by reference to the Registration Statement on DEF14 A, Appendix C filed with the SEC on April 19, 2007)
3.6	Certificate of Merger, filed with the Delaware Secretary of State on November 30, 2011 (incorporated herein by reference to the Registration Statement on Form 10-Q Exhibit 3.6 filed with SEC on May 10, 2012)
3.7	Amended and Restated Bylaws of BBCN Bancorp, Inc. (incorporated herein by reference to Current Report on Form 8-K Exhibit 5.1 filed with the SEC on February 1, 2012, SEC file number 000-50245)
10.1	Definitive Agreement and Plan of Merger, dated as of October 22, 2012, between BBCN Bancorp, Inc. and Pacific International Bancorp, Inc
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
	and
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Public Company Accounting Reform and Investor Protection Act of 2002*
32.2	Certification of Chief Financial Officer pursuant to section 906 of the Public Company Accounting Reform and Investor Protection Act of 2002*
101.INS**	XBRL Instance Document
101.SCH**	XBRL Taxonomy Extension Schema Document
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF**	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB**	XBRL Taxonomy Extension Label Linkbase Document
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase Document

__________________________________

* Filed herewith

** Furnished herewith

70

EX-10.1

AGREEMENT AND PLAN OF MERGER

by and among

BBCN BANCORP, INC.

and

PACIFIC INTERNATIONAL BANCORP, INC.

_______________

Dated as of October 22, 2012

TABLE OF CONTENTS		Page
ARTICLE I	THE MERGER	1
Section 1.01	The Merger	1
Section 1.02	Closing	1
Section 1.03	Effective Time	2
Section 1.04	Certificate of Incorporation; Bylaws	2
Section 1.05	Directors and Officers	2
Section 1.06	Bank Merger	2
ARTICLE II	EFFECT OF MERGER ON CAPITAL STOCK; EXCHANGE OF CERTIFICATES	2
Section 2.01	Effect on Capital Stock	2
Section 2.02	Exchange of Certificates	4
Section 2.03	Stock Options	6
Section 2.04	Series A Preferred Stock; Treasury Warrant	6
ARTICLE III	REPRESENTATIONS AND WARRANTIES OF THE COMPANY	6
Section 3.01	Disclosure	7
Section 3.02	Representations and Warranties of the Company	7
ARTICLE IV	REPRESENTATIONS AND WARRANTIES OF ACQUIRER	28
Section 4.01	Representations and Warranties of Acquirer	28
ARTICLE V	COVENANTS RELATING TO CONDUCT OF BUSINESS	31
Section 5.01	Conduct of Businesses Prior to the Effective Time	31
Section 5.02	Company Forbearances	31
ARTICLE VI	ADDITIONAL AGREEMENTS	34
Section 6.01	Cooperation; Regulatory Matters	34
Section 6.02	Access to Information	35
Section 6.03	Employee Matters	36
Section 6.04	Indemnification; Directors' and Officers' Insurance	37
Section 6.05	Acquisition Proposals	38
Section 6.06	Takeover Laws	39
Section 6.07	Financial Statements and Other Current Information	40
Section 6.08	Shareholders Meeting	40

i

TABLE OF CONTENTS (continued)
		Page
Section 6.09	Notification of Certain Matters	40
Section 6.10	Related Party Contracts	40
Section 6.11	Form S-4 Registration Statement	41
Section 6.12	NASDAQ Listing	41
Section 6.13	Trust Preferred Securities	41
Section 6.14	Tax Matters	41
ARTICLE VII	CONDITIONS PRECEDENT	42
Section 7.01	Conditions to Each Party's Obligation to Effect the Merger	42
Section 7.02	Conditions to Obligations of Acquirer	42
Section 7.03	Conditions to Obligations of the Company	43
ARTICLE VIII	TERMINATION AND AMENDMENT	44
Section 8.01	Termination	44
Section 8.02	Effect of Termination	45
Section 8.03	Fees and Expenses	46
Section 8.04	Extension; Waiver	46
ARTICLE IX	GENERAL PROVISIONS	46
Section 9.01	Nonsurvival of Representations, Warranties and Agreements	47
Section 9.02	Amendment	47
Section 9.03	Waiver of Conditions	47
Section 9.04	Notices	47
Section 9.05	Counterparts	48
Section 9.06	Entire Agreement	48
Section 9.07	Severability	48
Section 9.08	Governing Law; Jurisdiction	48
Section 9.09	Waiver of Jury Trial	49
Section 9.10	Publicity	49
Section 9.11	Assignment; Third-Party Beneficiaries	50
Section 9.12	Specific Performance	50
Section 9.13	Definitions	50
Section 9.14	Other Definitional Provisions	55

ii

INDEX OF DEFINED TERMS

Acquirer Preamble

Acquirer Board Section 4.01(b)(ii)

Acquirer Common Stock Section 2.01(a)

Acquirer Disclosure Schedule Section 3.01

Acquirer Plans Section 6.03(a)

Acquirer SEC Reports Section 4.01(c)(i)

Agencies Section 3.02(u)(iv)

Agency Section 3.02(u)(iv)

Agreement Preamble

Anti-Money Laundering Laws Section 3.02(n)(iii)

Articles of Merger Section 1.03

Assumed Option Section 2.03

Audited Financial Statements Section 3.02(f)(i)

Bank Merger Section 1.06

Bank Merger Agreement Section 1.06

Bankruptcy and Equity Exception Section 3.02(d)(i)

Benefit Plan Section 3.02(q)(i)

BHCA Section 3.02(a)(i)

Book Entry Notice Section 2.02(b)

Burdensome Condition Section 6.01(c)

CERCLA Section 3.02(t)(ii)

Certificate Section 2.01(a)

Certificate of Merger Section 1.03

Change of Recommendation Section 6.05(c)

Closing Section 1.02

Closing Date Section 1.02

Code Recitals

Collar Price Section 2.01(a)

Company Preamble

Company Bank Section 3.02(a)(ii)

Company Board Recitals

Company Board Recommendation Section 3.02(d)(iii)

Company Common Stock Section 2.01(a)

Company Disclosure Schedule Section 3.01

Company Insurance Policies Section 3.02(v)

Company Intellectual Property Section 3.02(w)

Company Proprietary Right Section 3.02(l)(i)(15)

Company Reports Section 3.02(g)(i)

Confidentiality Agreement Section 6.02(b)

Covered Employees Section 6.03(a)

D&O Insurance Section 6.04(b)

Data Room Section 3.01

i

Delaware Secretary Section 1.03

DGCL Section 1.01

DIF Section 3.02(a)(ii)

Disclosure Schedules Section 3.01

Dissenting Shareholders Section 2.01(a)

Dissenting Shares Section 2.01(a)

Effective Time Section 1.03

Employees Section 5.02(h)

Environmental Laws Section 3.02(t)(i)

ERISA Section 3.02(q)(i)

ERISA Affiliate Section 3.02(q)(i)

Exchange Agent Section 2.02(a)

Exchange Ratio Section 2.01(a)

Executive Officer Section 5.02(h)

FDIC Section 3.02(a)(ii)

Federal Reserve Section 3.02(e)

Financial Statements Section 3.02(f)(i)

Hazardous Substances Section 3.02(t)(i)

Indemnified Parties Section 6.04(a)

Initial Premium Section 6.04(b)

Interim Financials Section 3.02(f)(i)

IRS Section 3.02(q)(ii)

Leased Real Property Section 3.02(h)

Loans Section 3.02(u)(i)

Market Value Section 2.01(a)

Material Contract Section 3.02(l)(i)

Merger Section 1.01

OFAC Section 3.02(n)(i)

Outside Date Section 8.01(e)

Parties Recitals

Party Recitals

Per Share Merger Consideration Section 2.01(a)

Pool Section 3.02(u)(vii)

Post-Signing Return Section 6.14

Preferred Stock Certificate Section 2.01(c)

RCW Section 3.02(a)(ii)

Regulatory Agreement Section 3.02(s)

Related Party Contract Section 3.02(y)(i)

Representatives Section 6.05(a)

Required Filings Section 6.01(a)

Requisite Regulatory Consents Section 3.02(e)

Requisite Shareholder Approval Section 3.02(d)(i)

SBA Section 3.02(u)(iv)

Series A Preferred Stock Section 2.01(c)

Share Section 2.01(a)

ii

Shareholders Meeting Section 6.08

Shares Section 2.01(a)

Surviving Corporation Section 1.01

TARP Section 2.01(c)

Treasury Section 2.01(c)

VA Section 3.02(u)(iv)

Voting Debt Section 3.02(b)

Washington DFI Section 3.02(e)

Washington Secretary Section 1.03

WBCA Section 1.01

iii

AGREEMENT AND PLAN OF MERGER, dated as of October 22, 2012 (this “Agreement”), by and among BBCN Bancorp, Inc., a Delaware corporation (“Acquirer”) and Pacific International Bancorp, Inc., a Washington corporation (the “Company”). Certain terms with initial capital letters used in this Agreement have the meanings indicated in Section 9.13.

RECITALS

WHEREAS, the board of directors of the Company (the “Company Board”) has (i) approved and declared advisable this Agreement and the transactions contemplated by this Agreement, including the Merger, (ii) determined that this Agreement and such transactions are fair to and in the best interests of the Company and its shareholders and (iii) resolved to recommend that the Company’s shareholders approve this Agreement.

WHEREAS, the board of directors of Acquirer has (i) approved and declared this Agreement and the transactions contemplated hereby to be advisable upon the terms and subject to the conditions set forth herein and (ii) determined that this Agreement and such transactions are fair to, and in the best interests of, Acquirer, and the shareholders of Acquirer.

WHEREAS, the Parties intend that for federal income tax purposes the Merger and the Bank Merger shall each qualify as a “reorganization” within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended (the “Code”), and that this Agreement shall constitute a “plan of reorganization” for purposes of Sections 354 and 361 of the Code.

WHEREAS, the parties hereto (each, a “Party” and, collectively, the “Parties”) desire to make certain representations and warranties and document their agreements in connection with the Merger and to prescribe certain conditions to the Merger.

NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and agreements contained in this Agreement, the Parties agree as follows:

ARTICLE I
THE MERGER

Section 1.01The Merger. Upon the terms and subject to the conditions set forth in this Agreement, at the Effective Time, the Company shall be merged with and into Acquirer and the separate corporate existence of the Company shall thereupon cease (the “Merger”). Acquirer shall be the surviving corporation in the Merger (Acquirer in such capacity being sometimes hereinafter referred to as the “Surviving Corporation”), and the separate corporate existence of Acquirer, with all its rights, privileges, immunities, powers and franchises, shall continue unaffected by the Merger. The Merger shall have the effects specified in the Delaware General Corporation Law (the “DGCL”) and the Washington Business Corporation Act (the “WBCA”).

Section 1.02Closing. Unless otherwise mutually agreed in writing between the Company and Acquirer, the closing for the Merger (the “Closing”) shall take place at the offices of Mayer Brown LLP, 350 South Grand Avenue, 25th Floor, Los Angeles, California, on a date

1

(the “Closing Date”) designated by Acquirer, which shall be no later than the fifth Business Day after the last to be satisfied or waived of the conditions set forth in Article VII (other than those conditions that by their nature are to be satisfied at the Closing, but subject to the fulfillment or waiver of those conditions at the Closing) in accordance with this Agreement, or at such other place and time as the Parties may agree.

Section 1.03Effective Time. In connection with the Closing, the Company and Acquirer shall cause a certificate of merger (the “Certificate of Merger”) to be executed, acknowledged and filed with the Secretary of State of the State of Delaware (the “Delaware Secretary”) as provided in Section 251 of the DGCL, and shall concurrently cause the articles of merger (the “Articles of Merger”) specified in the WBCA to be filed with the Secretary of State of the State of Washington (the “Washington Secretary”), in such form as required by, and executed in accordance with, the relevant provisions of the WBCA. The Merger shall become effective at the time (the “Effective Time”) (i) when the Certificate of Merger and the Articles of Merger have been duly filed with the Delaware Secretary and the Washington Secretary, respectively, or (ii) at such later time as may be agreed by the Parties in writing and specified in the Certificate of Merger and Articles of Merger.

Section 1.04Certificate of Incorporation; Bylaws. The certificate of incorporation and bylaws of Acquirer shall be the certificate of incorporation and bylaws of the Surviving Corporation, until thereafter duly amended as provided therein or by applicable Laws.

Section 1.05Directors and Officers. The directors of Acquirer immediately prior to the Effective Time shall, from and after the Effective Time, be the directors of the Surviving Corporation until their successors have been duly elected or appointed and qualified or until their earlier death, resignation or removal in accordance with the certificate of incorporation and the bylaws of the Surviving Corporation. The officers of Acquirer immediately prior to the Effective Time shall be the officers of the Surviving Corporation and shall hold office until their respective successors are duly appointed and qualified, or their earlier death, resignation or removal.

Section 1.06Bank Merger. As soon as reasonably practicable after the date hereof, Acquirer and the Company shall cause Acquirer Bank and Company Bank to enter into a bank merger agreement in substantially the form attached to this Agreement as Exhibit A (the “Bank Merger Agreement”), providing for the merger of Company Bank with and into Acquirer Bank, in which Acquirer Bank shall be the surviving banking corporation (the “Bank Merger”), in accordance with all applicable Laws and the terms of the Bank Merger Agreement concurrently with or as soon as reasonably practicable after consummation of the Merger.

ARTICLE II
EFFECT OF MERGER ON CAPITAL STOCK; EXCHANGE OF CERTIFICATES

Section 2.01Effect on Capital Stock. At the Effective Time, as a result of the Merger and without any action on the part of the holder of any capital stock of the Company or Acquirer:

(a)Company Common Stock. Subject to Section 2.02(e), each share of the common stock, no par value (the “Company Common Stock”), of the Company (each a “Share” and,

2

collectively, the “Shares”) issued and outstanding immediately prior to the Effective Time (other than (i) any Excluded Shares and (ii) Shares that are owned by shareholders (“Dissenting Shareholders”) who have perfected and not effectively withdrawn a demand for appraisal rights pursuant to Chapter 23B.13 of the WBCA (“Dissenting Shares”)) shall be converted into the right to receive the fraction of a share of the common stock, par value $0.01 per share, of Acquirer (the “Acquirer Common Stock”) equal to the Exchange Ratio (the “Per Share Merger Consideration”). The “Exchange Ratio” is equal to the fraction derived by dividing $1.75 by the Collar Price, carried out to five decimal places. The “Collar Price” shall be an amount equal to the average of the daily weighted average prices of the Acquirer Common Stock on NASDAQ as reported on the NASDAQ website for each of the fifteen (15) trading days ending one (1) trading day prior to the Effective Time (“Market Value”), subject to the limitations that in the event that such weighted average price exceeds $13.00 the Collar Price shall be $13.00 and in the event such weighted average price is less than $11.50 the Collar Price shall be $11.50. At the Effective Time, each Share shall cease to be outstanding, shall be cancelled and shall cease to exist, and each certificate (a “Certificate”) formerly representing any of the Shares (other than Excluded Shares and Dissenting Shares) shall thereafter represent only the Merger Consideration specified herein.

(b)Excluded Shares. Each Excluded Share shall, by virtue of the Merger and without any action on the part of the holder thereof, cease to be outstanding, be cancelled without payment of any consideration therefor and shall cease to exist.

(c)Series A Preferred Stock. Each share of Fixed Rate Cumulative Perpetual Preferred Stock, Series A issued by the Company to the United States Department of the Treasury (the “Treasury”) in connection with the Company’s participation in the Treasury’s Troubled Asset Relief Program (“TARP”) Capital Purchase Program (the “Series A Preferred Stock”) shall be converted into the right to receive payment in cash of the sum of $1,000 plus all accrued and unpaid dividends on such share of Series A Preferred Stock. At the Effective Time, each share of the Series A Preferred Stock shall cease to be outstanding, shall be cancelled and shall cease to exist, and each certificate (a “Preferred Stock Certificate”) formerly representing any of the Series A Preferred Stock shall thereafter represent only the right to receive the cash consideration specified herein.

(d)Dissenting Shares. Notwithstanding anything to the contrary contained herein, the holders of any Dissenting Shares shall be entitled only to such rights and payments as are provided by Chapter 23B.13 of the WBCA; provided, however, that if any such holder shall effectively waive, withdraw or lose such holder’s rights under Chapter 23B.13 of the WBCA, each of such holder’s Dissenting Shares shall thereupon be deemed to have been converted at the Effective Time into the right to receive the Per Share Merger Consideration, after giving effect to any required Tax withholdings as provided in Section 2.02(h), and such holder shall cease to have any other rights with respect thereto.

(e)No Effect on Acquirer Stock. The Merger shall have no effect on the shares of capital stock of Acquirer that are outstanding before the Merger, all of which shares shall remain outstanding without change after the Effective Time.

3

(f)Adjustments. If, between the date of this Agreement and the Effective Time, the outstanding shares of Acquirer Common Stock shall have been increased, decreased, changed into or exchanged for a different number or kind of shares or securities as a result of a reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar change in capitalization, an appropriate and proportionate adjustment shall be made to the Exchange Ratio.

Section 2.02Exchange of Certificates.

(a)Exchange Agent. At the Effective Time, Acquirer shall deposit or make available to Computershare, or to a bank or trust company designated by Acquirer and reasonably acceptable to the Company (the “Exchange Agent”), for the benefit of the holders of Shares for exchange in accordance with this Article II, (i) evidence of shares in book entry form representing the shares of Acquirer Common Stock issuable pursuant to Section 2.01 in exchange for the Shares and (ii) to the extent then known, sufficient cash to pay cash in lieu of fractional shares in accordance with Section 2.02(e).

(b)Exchange Procedures. Promptly after the Effective Time, the Surviving Corporation shall cause the Exchange Agent to mail to each holder of Shares of record (other than holders of Excluded Shares or Dissenting Shares) (i) a letter of transmittal specifying that delivery shall be effected, and risk of loss and title to the Certificates shall pass, only upon delivery of the Certificates (or affidavits of loss in lieu of the Certificates as provided in Section 2.02(d)) to the Exchange Agent, and (ii) instructions for use in effecting the surrender of the Certificates (or affidavits of loss in lieu of the Certificates as provided in Section 2.02(d)) in exchange for evidence in customary form of the issuance of shares of Acquirer Common Stock in book entry form (a “Book Entry Notice”) representing the number of whole shares of Acquirer Common Stock into which such Shares have been converted in the Merger. Upon surrender of a Certificate (or affidavit of loss in lieu of the Certificate as provided in Section 2.02(d)) to the Exchange Agent in accordance with the terms of such letter of transmittal, duly executed, the holder of such Certificate shall be entitled to receive in exchange therefor a Book Entry Notice evidencing that number of whole shares of Acquirer Common Stock, which such holder has the right to receive in respect of the Shares surrendered pursuant to the provisions of this Article II (after aggregation of all Shares then held by such holder) and the Certificate so surrendered shall forthwith be cancelled. In the event of a transfer of ownership of Shares that is not registered in the transfer records of the Company, the Merger Consideration to be exchanged upon due surrender of the Certificate as herein provided may be issued to the transferee if the Certificate previously representing such Shares is presented to the Exchange Agent, accompanied by all documents required to evidence and effect such transfer and to evidence that any applicable stock transfer taxes have been paid or are not applicable.

(c)No Further Transfers. From and after the Effective Time, there shall be no transfers on the stock transfer books of the Company of the Shares that were outstanding immediately prior to the Effective Time. If, after the Effective Time, any Certificate is presented to the Surviving Corporation, Acquirer or the Exchange Agent for transfer, it shall be cancelled

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and exchanged for the Merger Consideration to which the holder of the Certificate is entitled pursuant to this Article II.

(d)Lost, Stolen or Destroyed Certificates. In the event any Certificate shall have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the Person claiming such Certificate to be lost, stolen or destroyed and, if required by Acquirer, the posting by such Person of a bond in customary amount and upon such terms as may be required by Acquirer as indemnity against any claim that may be made against it or the Surviving Corporation with respect to such Certificate, the Exchange Agent will issue a Book Entry Notice evidencing the amount of Acquirer Common Stock to which the holder of Company Common Stock is entitled pursuant to this Article II.

(e)No Fractional Shares. No certificates or scrip representing fractional shares of Acquirer Common Stock shall be issued upon the surrender for exchange of Company Common Stock, and such fractional share interests will not entitle the owner thereof to vote or to any rights of a shareholder of the Surviving Corporation. In lieu thereof, upon surrender of the applicable Company Common Stock by submission of a letter of transmittal to the Exchange Agent accompanied by the applicable Certificates, the Exchange Agent shall pay each holder of such Company Common Stock an amount in cash equal to the product obtained by multiplying (i) the fractional share interest to which such holder would otherwise be entitled by (ii) the Market Value.

(f)Termination of Exchange Fund. Any portion of the Exchange Fund which remains undistributed to the shareholders of the Company for six months after the Effective Time shall be delivered to the Surviving Corporation, upon demand, and any holders of Company Common Stock who have not theretofore complied with this Article II shall thereafter look only to the Surviving Corporation for payment of their claim for Acquirer Common Stock, any cash in lieu of fractional shares of Acquirer Common Stock and any dividends or distributions with respect to Acquirer Common Stock.

(g)Appraisal Rights. No Person who has perfected a demand for appraisal rights pursuant to Chapter 23B.13 of the WBCA shall be entitled to receive the Per Share Merger Consideration with respect to the Shares owned by such Person unless and until such Person shall have effectively withdrawn or lost such Person’s right to appraisal under the WBCA. Each Dissenting Shareholder shall be entitled to receive only the payment provided by Chapter 23B.13 of the WBCA with respect to Shares owned by such Dissenting Shareholder. The Company shall give Acquirer (i) reasonably prompt notice of any written demands for appraisal, attempted withdrawals of such demands, and any other instruments served pursuant to applicable Law that are received by the Company relating to shareholders’ rights of appraisal and (ii) the opportunity to direct all negotiations and proceedings with respect to demand for appraisal under Chapter 23B.13 of the WBCA. The Company shall not, except with the prior written consent of Acquirer, voluntarily make any payment with respect to any demands for appraisal, offer to settle or settle any such demands or approve any withdrawal of any such demands.

(h)Withholding Rights. Each of Acquirer and the Surviving Corporation shall be entitled to deduct and withhold from the consideration otherwise payable pursuant to this

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Agreement to any holder of Shares such amounts as it is required to deduct and withhold with respect to the making of such payment under the Code or any other applicable state, local or foreign Tax Laws. To the extent that amounts are so withheld by Acquirer or the Surviving Corporation, as the case may be, such withheld amounts (i) shall be remitted by Acquirer or the Surviving Corporation, as applicable, to the applicable Governmental Entity, and (ii) to the extent so remitted, shall be treated for all purposes of this Agreement as having been paid to the holder of Shares in respect of which such deduction and withholding was made by the Surviving Corporation or Acquirer, as the case may be.

Section 2.03Stock Options. The Company and Acquirer shall take all actions necessary to provide that, effective as of the Effective Time, without any action on the part of the holders thereof, each outstanding Company Stock Option shall cease to represent the right to acquire shares of Company Common Stock and shall instead be converted automatically into an option to acquire shares of Acquirer Common Stock as provided below (an “Assumed Option”), and such Assumed Options will be assumed by Acquirer on substantially the same terms and conditions as were applicable under the corresponding Company Stock Options immediately prior to the Effective Time; provided, however, that after the Effective Time:

(a)each Assumed Option will be exercisable for a number of shares of Acquirer Common Stock equal to the product of (i) the number of shares of Company Common Stock that would be issuable upon exercise of the Company Stock Option outstanding immediately prior to the Effective Time multiplied by (ii) the Exchange Ratio, rounded down to the nearest whole share; and

(b)the per share exercise price for the Acquirer Common Stock issuable upon exercise of such Assumed Option will be equal to the quotient determined by dividing (i) the per share exercise price for such Company Stock Option outstanding immediately prior to the Effective Time by (ii) the Exchange Ratio, rounded up to the nearest whole cent.

Any restriction on the exercisability of such Company Stock Option in effect as of the date hereof will continue in full force and effect, and the term, exercisability, and vesting schedule of such Company Stock Option as in effect on the date hereof will remain unchanged. As soon as reasonably practicable following the Closing Date, the Surviving Corporation will deliver to each Person who holds an Assumed Option a document evidencing the foregoing assumption of such Company Stock Option by the Surviving Corporation. The Company and Acquirer will cooperate and coordinate with respect to any materials to be submitted to the holders of Company Stock Options in connection with any notice required under this Section 2.03.

Section 2.04Series A Preferred Stock; Treasury Warrant. Acquirer will make appropriate arrangements with the Treasury prior to the Effective Time to pay to the Treasury the Merger Consideration to which the Treasury is entitled with respect to the Series A Preferred Stock owned by the Treasury and, at Acquirer’s sole election, to purchase the Treasury Warrant, in connection with or following the Closing.

ARTICLE III
REPRESENTATIONS AND WARRANTIES OF THE COMPANY

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Section 3.01Disclosure. On or prior to the date of this Agreement, the Company has delivered to Acquirer a schedule (the “Company Disclosure Schedule”) and Acquirer has delivered to the Company a schedule (the “Acquirer Disclosure Schedule,” and, together with the Company Disclosure Schedule, the “Disclosure Schedules”), setting forth, among other things, items the disclosure of which is necessary or appropriate either in response to an express disclosure requirement contained in a provision hereof or as an exception to one or more representations or warranties contained in Article III and Article IV, or to one or more of the Company’s or Acquirer’s covenants contained herein. The Company Disclosure Schedule may refer to and incorporate by reference information and documents contained in the electronic data room (the “Data Room”) established by the Company for the purpose of providing information and documents in connection with the transactions contemplated by this Agreement; provided, that such information and documents may only be incorporated by reference to the extent they are contained in the Data Room as of the close of business on the second day preceding the date of this Agreement and only to the extent that the specific Sections or subsections of this Agreement to which it relates are stated under appropriate captions in the Company Disclosure Schedule.

Section 3.02Representations and Warranties of the Company. The Company represents and warrants to Acquirer that, except as Previously Disclosed:

(c)Organization, Good Standing and Qualification.

(i)The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Washington. The Company is a bank holding company duly registered under the Bank Holding Company Act of 1956 (the “BHCA”) and meets the applicable requirements for qualification as such. The Company has all corporate power and authority to own or lease all the assets owned or leased by it and to conduct its business as it is now being conducted, except where any failure could not, individually or in the aggregate, reasonably be expected to be materially adverse to the Company. The Company is duly licensed or qualified to do business and in good standing as a foreign corporation in all jurisdictions (1) in which the nature of the activities conducted by the Company requires such licensure or qualification and (2) in which the Company owns or leases real property, other than any failures to be so licensed or qualified that (3) would not reasonably be expected to have or result in any material adverse impact on the Company. The articles of incorporation of the Company comply with applicable Law. A true, complete and correct copy of each of the articles of incorporation and the bylaws of the Company, as amended and currently in effect, has been delivered or made available to Acquirer.

(ii)Pacific International Bank (“Company Bank”) is a wholly owned subsidiary of the Company and is a Washington state-chartered commercial bank duly organized, validly existing and in good standing under Title 30 of the Revised Code of Washington (the “RCW”). The deposit accounts of Company Bank are insured up to applicable limits (or fully insured if there is no limit) by the Deposit Insurance Fund (“DIF”), which is administered by the Federal Deposit Insurance Corporation (the

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“FDIC”), and no proceedings for the termination or revocation of such insurance are pending or, to the Knowledge of the Company, threatened. Company Bank has the corporate power and authority to own or lease all of the assets owned or leased by it and to conduct its business as it is now being conducted, except where any failure could not, individually or in the aggregate, reasonably be expected to be materially adverse to the Company. Company Bank is duly licensed or qualified to do business and in good standing in all jurisdictions (1) in which the nature of the activities conducted by Company Bank requires such qualification and (2) in which Company Bank owns or leases real property, other than, in each case, such failures that would not have any material adverse impact on Company Bank. The articles of incorporation of Company Bank comply with applicable Law. A true, complete and correct copy of each of the articles of incorporation of Company Bank and the bylaws of Company Bank, as amended and currently in effect, has been delivered or made available to Acquirer.

(iii)Each of the Company’s Subsidiaries (other than Company Bank) is a corporation or other legal entity duly incorporated or duly organized, validly existing and in good standing under the Laws of its jurisdiction of organization. Each such Subsidiary has the corporate (or similar) power and authority to own or lease all of the assets owned or leased by it and to conduct its business in all material respects as it is now being conducted, except where any failure could not, individually or in the aggregate, reasonably be expected to be materially adverse to the Company. Each such Subsidiary is duly licensed or qualified to do business and in good standing as a foreign corporation or other legal entity in all jurisdictions (1) in which the nature of the activities conducted by such Subsidiary requires such licensing or qualification and (2) in which such Subsidiary owns or leases real property, other than, in each case, such failures that would not have any material adverse impact on the Company. The articles or certificate of incorporation, operating or limited liability company agreement, certificate of trust or other organizational document of each such Subsidiary comply with applicable Law. A true, complete and correct copy of the articles or certificate of incorporation, operating or limited liability company agreement, or certificate of trust and bylaws (or similar governing documents) of each such Subsidiary, as amended and currently in effect, has been delivered or made available to Acquirer.

(d)Capitalization. The authorized capital stock of the Company consists of 10,000,000 shares of Company Common Stock, no par value, and 6,500 shares of Series A Preferred Stock, $0.01 par value. As of September 30, 2012, (i) 4,701,832 shares of Company Common Stock were issued and outstanding, 127,785 shares of Company Common Stock were reserved for issuance upon exercise of the Treasury Warrant, 95,000 shares of Company Common Stock were subject to outstanding stock options issued under the Company Stock Plan, 699,766 shares of Company Common Stock were reserved for future issuance upon exercise of stock options or other awards granted in the future under the Company Stock Plan and 383,716 shares of Company Common Stock were reserved for issuance under the Company Restricted Stock Plan, but no restricted stock is currently outstanding; and (ii) 6,500 shares of Series A Preferred Stock were issued and outstanding. All of the issued and outstanding shares of Company Common Stock and Series A Preferred Stock have been duly authorized and validly

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issued and are fully paid and nonassessable and were not issued in violation of or subject to any preemptive rights or other rights to subscribe for or purchase securities. No bonds, debentures, notes or other indebtedness having the right to vote on any matters on which the shareholders of the Company may vote (“Voting Debt”) are issued and outstanding. As of the date of this Agreement, except (i) pursuant to any cashless exercise provisions of any Company Stock Options or pursuant to the surrender of shares to the Company or the withholding of shares by the Company to cover Tax withholding obligations under the Benefit Plans and (ii) as required to satisfy obligations in respect of outstanding Company Stock Options, the Company does not have and is not bound by any outstanding subscriptions, options, calls, commitments or Contracts of any character calling for the purchase or issuance of, or securities or rights convertible into or exchangeable for, any shares of Company Common Stock or preferred stock or any other equity securities of the Company or Voting Debt or any securities representing the right to purchase or otherwise receive any shares of capital stock of the Company (including any rights plan or agreement). Section 3.02(b) of the Company Disclosure Schedule sets forth a table listing, as of the date of this Agreement, the outstanding series of trust preferred and subordinated debt securities of the Company, Company Bank and all of the Company’s other Subsidiaries, and all such information is accurate and complete.

(e)Subsidiaries. With respect to Company Bank and each of the Company’s other Subsidiaries, (i) all the issued and outstanding shares of such entity’s capital stock (or corresponding equity interests in the case of Subsidiaries that are not corporations) have been duly authorized and validly issued, are fully paid and nonassessable (except as provided by Section 30.12.180 of the RCW) and were not issued in violation of or subject to any preemptive rights or other rights to subscribe for or purchase securities, and (ii) such entity does not have and is not bound by any outstanding subscriptions, options, calls, commitments or Contracts of any character calling for the purchase or issuance of, or securities or rights convertible into or exchangeable for, any shares of such entity’s capital stock or any other equity securities or Voting Debt or any securities representing the right to purchase or otherwise receive any shares of capital stock of such entity (including any rights plan or agreement). Neither the Company nor Company Bank has received any notice relating to the assessment on the capital stock of Company Bank. Section 3.02(c) of the Company Disclosure Schedule sets forth as of the date of this Agreement (i) each of the Company’s Subsidiaries and the ownership interest of the Company in each such Subsidiary, as well as the ownership interest of any other Person or Persons in each such Subsidiary and (ii) the Company’s or its Subsidiaries’ capital stock, equity interest or other direct or indirect ownership interest in any other Person other than (1) securities in a publicly traded company held for investment by the Company or any of its Subsidiaries and consisting of less than one percent (1%) of the outstanding capital stock of such company and (2) securities held in a fiduciary capacity for the benefit of customers.

(f)Authorization and Action.

(i)The Company has all requisite corporate power and authority and has taken all corporate action necessary in order to execute, deliver and perform its obligations under this Agreement and to consummate the transactions contemplated hereby, subject only, with respect to the Merger, approval of this Agreement by the

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holders of two-thirds of the outstanding Company Common Stock and Series A Preferred Stock voting together as a single class, and the holders of two-thirds of the outstanding shares of Series A Preferred Stock voting separately as a single class (the “Requisite Shareholder Approval”). This Agreement has been duly and validly executed and delivered by the Company and, assuming due authorization, execution and delivery by Acquirer, is a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Laws of general applicability relating to or affecting creditors’ rights and to general equitable principles, regardless of whether such enforceability is considered in a proceeding in equity or at law (the “Bankruptcy and Equity Exception”).

(ii)The Company Board has received the opinion of its financial advisor, Keefe Bruyette & Woods, Inc. to the effect that, subject to the assumptions, qualifications and limitations set forth therein, as of the date of such opinion, the Per Share Merger Consideration is fair to the holders of the Shares from a financial point of view. It is agreed and understood that such opinion is solely for the benefit of the Company Board and may not be relied upon by Acquirer or any holders of capital stock of the Company.

(iii)The Company Board has duly adopted resolutions (1) determining that this Agreement and the transactions hereby are advisable, and in the best interests of the Company and its shareholders, (2) approving this Agreement and the transactions contemplated hereby and (3) recommending that the Company’s shareholders approve this Agreement (such recommendation, the “Company Board Recommendation”).

(iv)Neither the execution and delivery by the Company of this Agreement, nor the consummation of the transactions contemplated hereby, nor compliance by the Company with any of the provisions hereof, will (1) violate, conflict with, or result in a breach of any provision of, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or result in the loss to the Company or any of its Subsidiaries of any benefit or creation of any right on the part of any third party under, or accelerate the performance required by, or result in a right of termination or acceleration of, or result in the creation of any Encumbrances upon any of the material properties or assets of the Company or any of its Subsidiaries under any of the terms, conditions or provisions of (x) the certificate of incorporation or bylaws of the Company or the certificate of incorporation, charter, bylaws or other governing instruments of any of its Subsidiaries or (y) to Company’s Knowledge, any material Contract or license to which the Company or any of its Subsidiaries is a party or by which it may be bound, or to which the Company or any of its Subsidiaries or any of the properties or assets of the Company or any of its Subsidiaries may be subject, or (2) subject to compliance with the statutes and regulations referred to in Section 3.02(e), violate any Law or Order applicable to the Company or any of its Subsidiaries or any of their respective properties or assets.

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(g)Consents and Approvals. Other than (i) applicable requirements of the Securities Act, the Exchange Act, and state securities and “blue sky” laws, as may be required in connection with this Agreement and the transactions contemplated hereby, (ii) the filing of the Certificate of Merger and the Articles of Merger with the Delaware Secretary and the Washington Secretary, respectively, (iii) the filing of applications and notices with the Board of Governors of the Federal Reserve System (the “Federal Reserve”), the FDIC, the Treasury, the State of Washington Department of Financial Institutions (the “Washington DFI”), and the State of California Department of Financial Institutions, and the receipt of approval or notice of non-objection thereto and the expiration of any related waiting periods, (iv) such approvals, indications of non-objection or agreements from applicable bank regulatory agencies and the Treasury as Acquirer shall consider necessary or advisable to enable Acquirer to make payment to the Treasury for the Series A Preferred Stock in the Merger and to purchase the Treasury Warrant, and (v) such other consents of, filings with, authorizations or approvals from and registrations with any Governmental Entity which if not obtained or made would not, individually or in the aggregate, be material to the Company and its Subsidiaries taken as a whole (clauses (iii) through (v), collectively the “Requisite Regulatory Consents”), no notice or application to or filing with, or consent or notice of non-objection of, any Governmental Entity or any other Person is necessary in connection with the Company’s execution, delivery or performance of this Agreement, and the consummation of the Merger, the Bank Merger and the other transactions contemplated hereby. A list of all Requisite Regulatory Consents and any other regulatory consents that are required by the Company, its Subsidiaries or any of their Affiliates as of the date hereof is disclosed in Section 3.02(e) of the Company Disclosure Schedule.

(h)Financial Statements.

(i)The Company has previously made available to Acquirer copies of (1) the audited consolidated statements of financial condition of the Company and its Subsidiaries as of December 31, 2010 and 2011, and the related consolidated statements of operations, of comprehensive income, of changes in shareholders’ equity, and of cash flows for the years ended December 31, 2010 and 2011, in each case including the related notes and accompanied by the audit report of Moss Adams LLP (the “Audited Financial Statements”), and (2) the unaudited consolidated statements of financial condition of the Company and its Subsidiaries as of June 30, 2012 and the related unaudited consolidated statements of operations, of comprehensive income, of changes in shareholders’ equity and of cash flows for the six-month period ended June 30, 2012, in each case including the related notes (the “Interim Financials” and, collectively with the Audited Financial Statements, the “Financial Statements”).

(ii)Each of the Financial Statements has been prepared in accordance with GAAP consistently applied throughout the periods covered by each such statement (except for inconsistencies in the application of GAAP described in such Financial Statements or in the notes thereto), is consistent with the books and records of the Company, and fairly presents, in all material respects, the consolidated financial condition of the Company as of the respective dates and the results of operations and cash

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flows of the Company for the respective periods indicated therein, as applicable, subject to, in the case of the Interim Financials (1) the absence of notes and schedules and (2) normal year-end adjustments (but only to the extent not material in the aggregate).

(iii)The books and records of the Company and its Subsidiaries in all material respects have been, and are being, maintained in accordance with applicable legal and accounting requirements and reflect only actual transactions.

(iv)Moss Adams LLP, which has expressed its opinion with respect to the consolidated financial statements of the Company for the years ended December 31, 2010 and 2011 were, to the Company’s Knowledge, as of the date of such opinion independent public accountants, within the meaning of the Code of Professional Conduct of the American Institute of Certified Public Accountants.

(i)Reports; Books and Records.

(i)Since January 1, 2011, each of the Company and each of its Subsidiaries has timely filed or furnished all material reports, registrations, documents, filings, statements and submissions, together with any amendments thereto, that it was required to file with or furnish to any Governmental Entity (the foregoing, collectively, the “Company Reports”) and has paid all material fees and assessments due and payable in connection therewith. As of their respective dates of filing or furnishing, or, if amended, as of the date of the last such amendment prior to the date of this Agreement, the Company Reports complied in all material respects with all statutes and applicable rules and regulations of the applicable Governmental Entities. As of the date of this Agreement, there are no outstanding comments from any Governmental Entity with respect to any such Company Report. With respect to all other Company Reports filed since January 1, 2009 or to be filed subsequent to the date of this Agreement and prior to the Closing, the Company Reports will be complete and accurate in all material respects as of their respective dates, or the dates of their respective amendments. Except for normal examinations conducted by a Governmental Entity in the regular course of the business of the Company and its Subsidiaries, no Governmental Entity has initiated any proceeding or, to the Knowledge of the Company, investigation into the business or operations of the Company or any of its Subsidiaries since January 1, 2009. Except as set forth in Section 3.02(g) of the Company Disclosure Schedule, there are no unresolved violations set forth in any report relating to any examinations or inspections by any Governmental Entity of any of the Company and its Subsidiaries. The Company and its Subsidiaries have fully resolved all “matters requiring attention,” “matters requiring immediate attention,” “matters requiring enhancements” and similar items as identified by any such Governmental Entity.

(ii)Neither the Company nor any of its Subsidiaries is required to file periodic reports with the SEC pursuant to Sections 13 or 15(d) of the Exchange Act.

(iii)The records, systems, controls, data and information of each of the Company and each of its Subsidiaries are recorded, stored, maintained and operated

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under means (including any electronic, mechanical or photographic process, whether computerized or not) that are under the exclusive ownership and direct control of the Company or its Subsidiaries or their accountants (including all means of access thereto and therefrom), except as would not reasonably be expected to have a material adverse effect on the Company’s system of internal accounting controls.

(iv)Each of the Company and each of its Subsidiaries maintains a system of internal accounting controls sufficient to provide reasonable assurances regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP, and that (1) transactions are executed in accordance with management’s general or specific authorization, (2) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain accountability for assets, (3) access to assets is permitted only in accordance with management’s general or specific authorization and (4) the recorded amount for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

(j)Real Property. To the Company’s Knowledge, with respect to the real property leased or subleased to the Company or its Subsidiaries (the “Leased Real Property”), the lease or sublease for such property is valid, legally binding, enforceable and in full force and effect, and neither the Company nor any of its Subsidiaries is in breach of or default under such lease or sublease, and no event has occurred which, with notice, lapse of time or both, would constitute a breach or default by any of the Company or its Subsidiaries or permit termination, modification or acceleration by any third party thereunder, or prevent, materially delay or materially impair the consummation of the transactions contemplated by this Agreement except in each case, for such invalidity, failure to be binding, unenforceability, ineffectiveness, breaches, defaults, terminations, modifications, accelerations or repudiations that would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. The Company and Company Bank do not own any real property, other than real estate acquired by Company Bank or a Subsidiary of Company Bank through foreclosure or by deed in lieu of foreclosure.

(k)Taxes. Except as set forth in Section 3.02(i) of the Company Disclosure Schedule, to the Company’s Knowledge: (1) each of the Company and each of its Subsidiaries has duly and timely filed (including, pursuant to applicable extensions) all Tax Returns required to be filed by it and all such Tax Returns are correct and complete; (2) each of the Company and each of its Subsidiaries has paid in full all Taxes due or made adequate provision in the financial statements of the Company (in accordance with GAAP) for any such Taxes, whether or not shown as due on such Tax Returns; (3) no deficiencies for any Taxes have been proposed, asserted or assessed, in each case in writing, against or with respect to any Taxes due by, or Tax Returns of, the Company or any of its Subsidiaries which deficiencies have not since been resolved; (4) there are no Encumbrances for Taxes upon the assets of either the Company or its Subsidiaries except for statutory Encumbrances for Taxes not yet due; (5) neither the Company nor any of its Subsidiaries has been a “distributing corporation” or a “controlled corporation” in any distribution occurring during the last two (2) years in which the parties to such distribution treated the distribution as one to which Code Section 355 is applicable; (6) neither the Company

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nor any of its Subsidiaries has engaged in any “listed transaction” within the meaning of Treasury Regulations section 1.6011-4(b)(2); (7) neither the Company nor any of its Subsidiaries has engaged in a transaction of which it made disclosure to any taxing authority to avoid penalties under Section 6662(d) or any comparable provision of state, foreign or local Law; (8) neither the Company nor any of its Subsidiaries has participated in any “tax amnesty” or similar program offered by any taxing authority to avoid the assessment of penalties or other additions to Tax; (9) the Company and each of its Subsidiaries have complied in all material respects with all requirements to report information for Tax purposes to any individual or taxing authority, and have collected and maintained all material certifications and documentation in valid and complete form with respect to any such reporting obligation, including, without limitation, valid Internal Revenue Service Forms W-8 and W-9; (10) no written claim has been made within the past three (3) years by a Tax authority in a jurisdiction where the Company or any of its Subsidiaries, as the case may be, does not file Tax Returns that the Company, Bank or any of the Company’s other Subsidiaries, as the case may be, is or may be subject to Tax by that jurisdiction; (11) neither the Company nor any of its Subsidiaries has granted any currently effective waiver, extension or comparable consent regarding the application of the statute of limitations with respect to any Taxes or Tax Return that is outstanding, nor has any request for any such waiver or consent been made; (12) neither the Company nor any of its Subsidiaries has been or is in violation (or with notice or lapse of time or both, would be in violation) of any applicable Law relating to the payment or withholding of Taxes (including, without limitation, withholding of Taxes pursuant to Sections 1441 and 1442 of the Code or any similar provisions of state, local or foreign law); (13) each of the Company and each of its Subsidiaries has duly and timely withheld from employee salaries, wages and other compensation and paid over to the appropriate taxing authority all amounts required to be so withheld and paid over under all applicable Laws; (14) no audits or investigations by any taxing authority relating to any Tax Returns of any of the Company or any of its Subsidiaries is in progress, nor has the Company or any of its Subsidiaries received written notice from any taxing authority of the commencement of any audit not yet in progress; (15) there are no outstanding and currently effective powers of attorney enabling any person or entity not a party to this Agreement to represent the Company or any of its Subsidiaries with respect to Tax matters other than its accountants or attorneys; (16) neither the Company nor any of its Subsidiaries has applied for, been granted, or agreed to any accounting method change for which it will be required to take into account any adjustment under Code Section 481 after the Closing; (17) neither the Company nor any of its Subsidiaries has undergone an “ownership change” within the meaning of Code Section 382(g); (18) neither the Company nor any of its Subsidiaries is liable for Taxes of any other Person (other than the Company or any of its Subsidiaries) pursuant to a tax indemnity, tax sharing or other similar agreement (other than pursuant to lease agreements, loan agreements, financing arrangements, commercial agreements entered into in the ordinary course of business, or Benefit Plans); (19) neither the Company nor any of its Subsidiaries has any liability for any tax under Treasury Regulations section 1.1502-6 (or any similar provision of state, local or non-United States law), as a transferee or successor, by contract or otherwise; (20) neither the Company nor any of its Subsidiaries has taken or agree to take (or failed to take or agree to take) any action or knows of any facts or circumstances that would reasonably be expected to prevent the Merger or the Bank Merger from qualifying as a reorganization within the meaning of Section 368(a) of the Code; and (21) Company Bank operates at least one significant historic business line, or owns at least a

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significant portion of its historic business assets, in each case within the meaning of Treasury Regulations section 1.368-1(d).

(l)Absence of Certain Changes. Since December 31, 2011, and except as Previously Disclosed, (i) the Company and its Subsidiaries have conducted their respective businesses in all material respects in the ordinary course of business and consistent with past practice, (ii) the Company has not made or declared any distribution in cash or in kind to its shareholders or issued or repurchased any shares of its capital stock or other equity interests, (iii) there has been no material change in any method of accounting or accounting practice by the Company or any of its Subsidiaries (except, in each case, as indicated in the Financial Statements or in the notes thereto), (iv) no fact, event, change, condition, development, circumstance or effect has occurred that has had, or would reasonably be expected to have, a Company Material Adverse Effect, and (v) no material default (or event which, with notice or lapse of time, or both, would constitute a material default) exists on the part of the Company or any of its Subsidiaries or, to their Knowledge, on the part of any other party, in the due performance and observance of any term, covenant or condition of any Contract to which the Company or any of its Subsidiaries is a party and which is, individually or in the aggregate, material to the financial condition of the Company and its Subsidiaries, taken as a whole.

(m)No Undisclosed Liabilities. Neither the Company nor any of its Subsidiaries has any liabilities or obligations of any nature, or is an obligor under any guarantee, keepwell or other similar Contract (absolute, accrued or contingent) or otherwise except for (i) liabilities or obligations reflected in or reserved against in the Company’s consolidated balance sheet as of December 31, 2011 and (ii) liabilities that have arisen since December 31, 2011 in the ordinary course of business and consistent with past practice and that have either been Previously Disclosed or would not have, individually or in the aggregate, a material adverse impact on the Company and its Subsidiaries, taken as a whole.

(n)Commitments and Contracts.

(i)The Company has provided to Acquirer or its representatives true, correct and complete copies of each Material Contract to which the Company or any of its Subsidiaries is, as of the date hereof, a party or subject. “Material Contract” means each of the following (whether written or oral):

(1)any Contract with respect to the employment or service of any current or former directors, officers, employees or consultants of the Company or any of its Subsidiaries, in each case involving an annual base salary, annual fee or other form of cash compensation, as applicable, to be paid by the Company or any of its Subsidiaries in excess of $50,000, or any Contract with a current or former director, officer or employee with change-in-control or severance or other provisions resulting in or causing the acceleration of any compensation benefit upon a change in control or termination of employment following a change in control;

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(2)any Contract containing any standstill or similar agreement pursuant to which one Person has agreed not to acquire assets or securities of another Person;

(3)any Related Party Contract;

(4)any Contract (A) that restricts the ability of the Company or any of its Subsidiaries to compete in any business or geographic area or any particular medium or (B) that grants a Person other than the Company or any of its Subsidiaries “most favored nation” status or “exclusivity” or similar rights;

(5)any Contract involving the payment or receipt of royalties or similar payments of more than $25,000 in the aggregate calculated based upon the revenues or income of the Company or its Subsidiaries or income or revenues related to any product or service of the Company or any of its Subsidiaries;

(6)any Contract with a labor union or guild (including any collective bargaining agreement);

(7)any Contract which grants any person a right of first refusal, right of first offer or similar right with respect to any material properties, assets or businesses of the Company or any of its Subsidiaries, other than with respect to real estate acquired by Company Bank or a Subsidiary of Company Bank through foreclosure or by deed in lieu of foreclosure;

(8)any Contract (A) having as its principal subject matter the agreement of the Company or any of its Subsidiaries to indemnify any Person, (B) providing for indemnification by the Company or any of its Subsidiaries of any Person and that could reasonably be expected to result in an indemnification obligation of the Company or any of its Subsidiaries in excess of $25,000, or (C) providing for indemnification by the Company or any of its Subsidiaries of any current or former director, officer or employee of the Company or any of its Subsidiaries;

(9)any Contract that contains a put, call or similar right pursuant to which the Company or any of its Subsidiaries could be required to purchase or sell, as applicable, assets that have a fair market value or purchase price of more than $25,000 or any equity interests of any Person;

(10)any indenture, mortgage, promissory note, loan agreement, guarantee, sale and leaseback agreement, capitalized lease or other agreement or commitment for the borrowing by the Company or any of its Subsidiaries of money or the deferred purchase price of property in excess of $100,000 (in either case, whether incurred, assumed, guaranteed or secured by any asset), or any Contract including provisions whereby the Company or any of its Subsidiaries is guaranteeing the obligations of or agreeing to provide financial support to or on

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behalf of a Person (other than to or on behalf of the Company or one of its Subsidiaries);

(11)any lease of real property that provides for annual payments of $25,000 or more;

(12)any license, franchise or similar Contract material to the business and operations of the Company and its Subsidiaries that provides for annual payments of $25,000 or more;

(13)any Contract for the purchase, sale or lease of materials, supplies, goods, services, equipment or other assets (other than those specified elsewhere in this definition) that provides for either (A) annual payments or obligations of $25,000 or more, or (B) aggregate payments or obligations of $100,000 or more;

(14)any partnership, joint venture or other similar agreement or arrangement;

(15)any Contract pursuant to which (A) the Company or any of its Subsidiaries grants a license or other right to use any registered and/or applied for Proprietary Right that is owned or purported to be owned by the Company or any of its Subsidiaries (a “Company Proprietary Right”) to a third person and (B) a third person grants a license or other right to the Company or any of its Subsidiaries to any Proprietary Rights (but excluding licenses to commercially available “click-wrap” or “shrink-wrap” software);

(16)any Contract relating to the acquisition or disposition of any material business or material assets (whether by merger, sale of stock or assets or otherwise), which acquisition or disposition is not yet complete or where such Contract contains continuing material obligations of the Company or any of its Subsidiaries;

(17)any agreement or consent decree entered into with a Governmental Entity;

(18)any Contract that provides for the imposition of any material Encumbrance on any assets of the Company.

(ii)To the Knowledge of the Company, each of the Material Contracts to which the Company or any of its Subsidiaries is a party or subject is valid and binding on the Company or its Subsidiaries, as the case may be and, to the Knowledge of the Company, each other party thereto, and is in full force and effect, except for such failures to be valid and binding or to be in full force and effect as would not be, or would not reasonably be expected to be, individually or in the aggregate, materially adverse to the Company. To the Knowledge of the Company, there is no default under any such Contracts by the Company or its Subsidiaries, or to the Knowledge of the Company, by

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the other party thereto, and no event has occurred that with the lapse of time or the giving of notice or both would constitute a default thereunder by the Company or its Subsidiaries or to the Knowledge of the Company, by the other party thereto, in each case except as would not be, or could not reasonably be expected to be, individually or in the aggregate, materially adverse to the Company.

(o)Litigation and Other Proceedings. Except as set forth in Section 3.02(m) of the Company Disclosure Schedule, there are no pending or, to the Knowledge of the Company, threatened, legal, administrative, arbitral or other proceedings, claims, actions, or pending or, to the Knowledge of the Company, threatened governmental or regulatory investigations of any nature (i) against the Company or any of its Subsidiaries (excluding those of the type contemplated by the following clause (ii)) which would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect or (ii) challenging the validity or propriety of the transactions contemplated by this Agreement. To the Knowledge of the Company, there is no injunction, order, judgment, decree or regulatory restriction imposed upon the Company, any of its Subsidiaries or the assets of the Company or any of its Subsidiaries. The representations and warranties set forth in this Section 3.02(m) shall not apply to any collection litigation or proceedings in the ordinary course related to the Company Bank’s loan portfolio that involve amounts not exceeding $500,000.

(p)Compliance with Laws.

(i)To the Knowledge of the Company, the business of each of the Company and each of its Subsidiaries has been since January 1, 2009, and is being, conducted in accordance with all material applicable Laws and written regulatory guidelines, including the Equal Credit Opportunity Act (15 U.S.C. Section 1691 et seq.), the Fair Housing Act (420 U.S.C. Section 3601 et seq.), the Community Reinvestment Act of 1977, the Home Mortgage Disclosure Act (12 U.S.C. Section 2801 et seq.), the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Bank Secrecy Act (31 U.S.C. Section 5311 et seq.), Title III of the USA Patriot Act, the Interagency Policy Statement on Retail Sales of Nondeposit Investment Products and all other applicable bank secrecy laws, fair lending laws and other laws relating to discriminatory business practices and any Order issued with respect to anti-money laundering by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”) and any other anti-money laundering statute, rule or regulation, except for violations that, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect. Each of the Company and each of its Subsidiaries has all permits, licenses, franchises, authorizations, orders and approvals of, and have made all filings, applications and registrations with, Governmental Entities that are required in order to permit them to own or lease their properties and assets and to carry on their business as presently conducted. Each of the Company and each of its Subsidiaries has since January 1, 2009 complied in all material respects with and is not in default or violation in any material respect of, and none of them is, to the Knowledge of the Company, under investigation with respect to, or, to the Knowledge of the Company, has been threatened to be charged with or given notice of, any material violation of, any applicable Law or Order of any Governmental Entity.

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Except for statutory or regulatory restrictions of general application, no Governmental Entity has placed any material restriction on the business or properties of the Company or any of its Subsidiaries that remains in effect. Neither the Company nor any of its Subsidiaries has received any written notification or communication from any Governmental Entity (1) asserting that the Company or any of its Subsidiaries is not in material compliance with any statutes, regulations or ordinances, (2) threatening to revoke any permit, license, franchise, authorization, order or approval or (3) threatening or contemplating revocation or limitation of, or which would have the effect of revoking or limiting, FDIC deposit insurance.

(ii)To the Knowledge of the Company, neither the Company nor any of its Subsidiaries, nor any director, officer, employee or Affiliate of either the Company or any of its Subsidiaries, nor, to the Knowledge of the Company, any agent or other Person acting on behalf of the Company or any of its Subsidiaries is currently subject to any sanctions administered by OFAC.

(iii)The operations of each of the Company and each of its Subsidiaries are and have been conducted at all times since December 31, 2008 in compliance with the money laundering statutes of applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any applicable Governmental Entity (collectively, the “Anti-Money Laundering Laws”) and no action, suit or proceeding by or before any Governmental Entity involving the Company and/or any of its Subsidiaries with respect to the Anti-Money Laundering Laws is pending or, to the Knowledge of the Company, threatened.

(iv)The Company and each of its Subsidiaries that is an insured depositary institution is in compliance in all material respects with the applicable provisions of the Community Reinvestment Act of 1977 and the regulations promulgated thereunder and has received a Community Reinvestment Act rating of “satisfactory” in its most recently completed exam, and the Company has no knowledge of the existence of any fact or circumstance or set of facts or circumstances which would reasonably be expected to result in the Company or any such Subsidiary having its current rating lowered.

(q)Fiduciary Accounts; Trust. Each of the Company and each of its Subsidiaries has properly administered in all material respects all accounts for which it acts as a fiduciary, including accounts for which it serves as a trustee, agent, custodian, personal representative, guardian, conservator or investment advisor, in accordance with the terms of the governing documents and applicable Law. To the Knowledge of the Company, none of the Company, any of its Subsidiaries, or any director, officer or employee of the Company or of any of its Subsidiaries, has committed any material breach of trust or fiduciary duty with respect to any such fiduciary account. To the Knowledge of the Company, the accountings for each such fiduciary account are true and correct, and accurately reflect, in all material respects the assets of such fiduciary account.

(r)Employees. No Employees of the Company or any of its Subsidiaries are represented by any labor union nor are any collective bargaining agreements otherwise in effect

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with respect to such Employees. No labor organization or group of Employees of the Company or any of its Subsidiaries has made a demand for recognition or certification, and there are no representation or certification proceedings or petitions seeking a representation proceeding presently pending or, to the Knowledge of the Company, threatened to be brought or filed with the National Labor Relations Board or any other labor relations tribunal or authority. The Company and its Subsidiaries are in compliance with all notice and other requirements under the Worker Adjustment and Retraining Notification Act of 1988 and any other similar applicable foreign, state, or local Laws relating to facility closings and layoffs. All independent contractors of the Company are properly classified in such capacity under applicable state and federal Law.

(s)Company Benefit Plans.

(i)(1) Section 3.02(q)(i) of the Company Disclosure Schedule sets forth a complete list of each Benefit Plan. With respect to each Benefit Plan, the Company and its Subsidiaries have complied, and are now in compliance, in all material respects, with all provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”), the Code and all laws and regulations applicable to such Benefit Plan; and (2) each Benefit Plan has been administered in all material respects in accordance with its terms. “Benefit Plan” means any employee welfare benefit plan within the meaning of Section 3(1) of ERISA, any employee pension benefit plan within the meaning of Section 3(2) of ERISA, and any bonus, incentive, deferred compensation, vacation, stock purchase, stock option, severance, employment, change of control or fringe benefit plan, program, agreement or policy sponsored, maintained or contributed to or required to be contributed to by the Company or any of its Subsidiaries or by any trade or business, whether or not incorporated, that together with the Company or any of its Subsidiaries would be deemed a “single employer” within the meaning of Section 4001(b) of ERISA (an “ERISA Affiliate”), or to which the Company, Company Bank, any of the Company’s other Subsidiaries or any of their respective ERISA Affiliates is party, whether written or oral, in each case for the benefit of any director, former director, employee or former employee of the Company or any of its Subsidiaries. No Benefit Plan is maintained outside the jurisdiction of the United States, or covers any employee residing or working outside of the United States.

(ii)With respect to each material Benefit Plan and each Benefit Plan (whether or not material) that is intended to be tax-qualified under Section 401(a) or Section 501(c)(9) of the Code, the Company has heretofore delivered or made available to Acquirer true and complete copies of each of the following documents: (1) a copy of the Benefit Plan and any amendments thereto (or if the Benefit Plan is not a written plan, a description thereof); (2) a copy of the two (2) most recent annual reports and actuarial reports, if required under ERISA; (3) a copy of the most recent Summary Plan Description, if required under ERISA with respect thereto; (4) if the Benefit Plan is funded through a trust or any third party funding vehicle, a copy of the trust or other funding agreement and the latest financial statements thereof; and (5) the most recent determination letter received from the Internal Revenue Service (the “IRS”) with respect to each Benefit Plan intended to qualify under Section 401 of the Code.

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(iii)Except as set forth in Section 3.02(q)(iii) of the Company Disclosure Schedule, no claim has been made, or to the Knowledge of the Company threatened, against the Company or any of its Subsidiaries related to any Benefit Plan, including, without limitation, any claim related to the purchase of employer securities or to expenses or fees paid under any defined contribution pension plan other than ordinary course claims for benefits.

(iv)No Benefit Plan is subject to Title IV of ERISA or described in Section 3(37) of ERISA, and none of the Company, any of its Subsidiaries or any of their ERISA Affiliates has at any time within the past six (6) years sponsored or contributed to, or has or had within the past six (6) years any liability or obligation in respect of, any plan subject to Title IV or described in Section 3(37) of ERISA. The Company has not incurred any current or projected liability in respect of post-retirement health, medical or life insurance benefits for the Employees, except as required to avoid an excise tax under Section 4980B of the Code or comparable state benefit continuation laws. The Company or its Subsidiaries may amend or terminate any Benefit Plan that provides for retiree medical or life benefits at any time without incurring any liability thereunder other than in respect of claims incurred prior to such amendment or termination.

(v)Each Benefit Plan intended to be “qualified” within the meaning of Section 401(a) of the Code and the related trust have received a favorable determination letter from the IRS as to qualification of the Benefit Plan under Section 401(a) of the Code and exemption of the related trust from taxation under Section 501(a) of the Code that has not been revoked, and, to the Company’s Knowledge, no circumstances exist and no events have occurred that could reasonably be expected to adversely affect the qualified status of any such Benefit Plan or the tax exempt status of the related trust. To the extent any Benefit Plan is required to be funded under ERISA or the Code, it is so funded and all contributions required to be made by applicable law have been timely made.

(vi)None of the Company, any of its Subsidiaries, any Benefit Plan, any trust created under any Benefit Plan, or any trustee or administrator of any Benefit Plan has engaged in a transaction in connection with which the Company or any of its Subsidiaries, any plan, any such trust, or any trustee or administrator thereof, or any party dealing with any plan or any such trust could reasonably be expected to be subject to either a material civil penalty assessed pursuant to Sections 409 or 502(i) of ERISA or a material tax imposed pursuant to Sections 4975 or 4976 of the Code.

(vii)To the Company’s Knowledge, each Benefit Plan and each Material Contract described in Section 3.02(l)(i)(1) that is a “nonqualified deferred compensation plan” within the meaning of Section 409A of the Code and associated Treasury Department guidance has (1) between January 1, 2005 and December 31, 2008, been operated in all material respects in good faith compliance with Section 409A of the Code and Notice 2005-01 and (2) since January 1, 2009 (or such later date permitted under applicable guidance), been operated in compliance with, and is in documentary

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compliance with, in all material respects, Section 409A of the Code and IRS regulations and guidance thereunder. All Company Options granted by the Company or any of its Subsidiaries to any current or former employee or director have been granted with a per share exercise price at least equal to the fair market value of the underlying stock on the date the Company Stock Option was granted, within the meaning of Section 409A of the Code and associated Treasury Department guidance.

(viii)Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby will, either alone or in conjunction with any other event, (1) result in any payment (including severance, unemployment compensation, “excess parachute payment” (within the meaning of Section 280G of the Code), forgiveness of indebtedness or otherwise) becoming due to any current or former employee, officer or director of the Company or any of its Subsidiaries under any Benefit Plan or otherwise, (2) increase any benefits otherwise payable under any Benefit Plan or any Material Contract described in Section 3.02(l)(i)(1), (3) result in any acceleration of the time of payment or vesting of any such benefits, (4) require the funding or increase in the funding of any such benefits or (5) result in any limitation on the right of the Company or any of its Subsidiaries to amend, merge, terminate or receive a reversion of assets from any Benefit Plan or related trust or any Material Contract described in Section 3.02(l)(i)(1). Neither the Company nor any of its Subsidiaries has taken, or permitted to be taken, any action that required, and no circumstances exist that will require the funding, or increase in the funding, of any benefits, or will result, in any limitation on the right of the Company or any of its Subsidiaries to amend, merge or terminate any Benefit Plan or receive a reversion of assets from any Benefit Plan or related trust.

(t)Risk Management Instruments. Since January 1, 2011, all derivative instruments, including, swaps, caps, floors and option Contracts, whether entered into for the account of the Company or any of its Subsidiaries or for the account of a customer of the Company or any of its Subsidiaries, were entered into (i) only in the ordinary course of business and consistent with past practice, (ii) in accordance with prudent banking practices and in all material respects with all applicable Laws and with the rules, regulations and policies of applicable Governmental Entities, and (iii) with counterparties believed to be financially responsible at the time; and each of them constitutes the valid and legally binding obligation of the Company or one of its Subsidiaries, enforceable in accordance with its terms, subject to the Bankruptcy and Equity Exception. Neither the Company nor any of its Subsidiaries, nor, to the Knowledge of the Company, any other party thereto, is in breach of any of its material obligations under any such Contract or arrangement. The financial position of the Company and any of its Subsidiaries, as applicable, on a consolidated basis under or with respect to each such derivative instrument has been reflected in its books and records and the books and records of such Subsidiaries in accordance with GAAP consistently applied.

(u)Agreements with Regulatory Agencies. Except as set forth in Section 3.02(s) of the Company Disclosure Schedule, neither the Company nor any of its Subsidiaries is subject to any cease-and-desist order or other enforcement action issued by, or is a party to any written

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agreement, consent agreement or memorandum of understanding with, or is a party to any commitment letter or similar undertaking to, or is subject to any capital directive by, or has adopted any board resolutions at the request of, any Governmental Entity (each type of item referred to in this sentence, a “Regulatory Agreement”), nor has the Company or any of its Subsidiaries been advised in writing, or, to the Knowledge of the Company, orally, since January 1, 2009 by any Governmental Entity that it is considering issuing, initiating, ordering, or requesting any such Regulatory Agreement. The Company and each Subsidiary are in compliance in all material respects with each Regulatory Agreement to which it is a party or subject, and since January 1, 2009 neither the Company nor any of its Subsidiaries has received any notice from any Governmental Entity indicating that either the Company or any of its Subsidiaries is not in compliance in all material respects with any such Regulatory Agreement. Without limiting the foregoing, each of the Company and each of its Subsidiaries, to the Knowledge of the Company, is and has been in compliance in all respects with the standards of conduct set forth in the Consent Order, dated December 2, 2011, issued by the FDIC and the Washington DFI except as set forth in Section 3.02(s) of the Company Disclosure Schedule.

(v)Environmental Liability.

(i)The Company and its Subsidiaries have at all times, and at the Closing Date will have, complied in all material respects with all Laws, regulations, ordinances, requirements of any Governmental Entity, and orders relating to public health, safety or the environment (“Environmental Laws”), including all laws, regulations, ordinances and orders relating to releases, discharges, emissions or disposals to air, water, land or groundwater, to the withdrawal or use of groundwater, to the use, handling or disposal of polychlorinated biphenyls, asbestos, mold or urea formaldehyde, to the treatment, storage, disposal or management of, or to exposure to, any substance regulated pursuant to any Environmental Law, including any hazardous substances, pollutants, contaminants, toxic, hazardous or other controlled, prohibited or regulated substances (“Hazardous Substances”).

(ii)In addition, and irrespective of such compliance, (and to its Knowledge with respect to any real estate acquired by Company Bank or a Subsidiary of Company Bank through foreclosure or by deed in lieu of foreclosure) neither the Company nor any of its Subsidiaries is subject to any liability for any exposure to any Hazardous Substance or any contamination, environmental remediation or clean-up obligations pursuant to any Environmental Law including any liability under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), or the Resource Conservation and Recovery Act of 1976, in each case which liability, individually or in the aggregate, would reasonably be expected to have a material impact on the consummation of the transactions contemplated by this Agreement.

(iii)There are no legal, administrative, arbitral or other proceedings, claims, actions or notices of any nature seeking to impose, or that would reasonably be expected to result in the imposition of, on the Company or any of its Subsidiaries, any liability or obligation of the Company or any of its Subsidiaries with respect to any Environmental

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Law. There is no private or governmental, environmental health or safety investigation or remediation activity of any nature arising under any Environmental Law pending or, to the Knowledge of the Company, threatened against the Company or any of its Subsidiaries or any property in which the Company or any of its Subsidiaries has taken a security interest, to the Knowledge of the Company there is no reasonable basis for, or circumstances that would reasonably be expected to give rise to, any such proceeding, claim, action, investigation or remediation; and neither the Company nor any of its Subsidiaries is subject to any agreement, letter or memorandum or Order by or with any Governmental Entity or any indemnity or other Contract with any third party that would reasonably be expected to impose any such environmental obligation or liability.

(iv)To the Company’s Knowledge, no property currently or formerly owned or operated by the Company or any of its Subsidiaries was contaminated with any Hazardous Substance during or prior to such period of ownership or operation in a manner that would result in any liability that could reasonably be expected to have, individually or in the aggregate, a material impact on the Company or any of its Subsidiaries, taken as a whole, or a material impact on the consummation of the transactions contemplated by this Agreement.

(v)The Company has made available to Acquirer copies of all material environmental reports, studies, assessments, sampling data and other material environmental documents in its possession as of the date hereof relating to the Company, its Subsidiaries or their current or former properties and properties in which the Company or any of its Subsidiaries has taken a security interest having a book value in excess of $500,000.

(vi)Each of the Company and each of its Subsidiaries complies with all FDIC guidelines concerning environmental due diligence and risk management in lending, loan administration, workout and foreclosure activities including FDIC Bulletin FIL-14-93, and update FIL-98-2006.

(w)Loan Portfolio.

(i)Except as set forth in Section 3.02(u)(i) of the Company Disclosure Schedule, as of the date hereof, neither the Company nor any of its Subsidiaries is a party to any written or oral (1) loan, loan agreement, note or borrowing arrangement (including leases, credit enhancements, commitments, guarantees and interest-bearing assets) (collectively, “Loans”), under the terms of which the obligor was, as of June 30, 2012, over 90 days delinquent in payment of principal or interest or, to the Knowledge of the Company, in default of any other material provision or (2) Loan with any director, executive officer or five percent or greater shareholder of the Company or any of its Subsidiaries, or to the Knowledge of the Company, any person, corporation or enterprise controlling, controlled by or under common control with any of the foregoing. Section 3.02(u)(i) of the Company Disclosure Schedule sets forth (1) all of the Loans of the Company or any of its Subsidiaries that as of June 30, 2012 were classified by the Company as “Other Loans Specially Mentioned,” “Special Mention,” “Substandard,”

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“Doubtful,” “Loss,” “Classified,” “Criticized,” “Credit Risk Assets,” “Concerned Loans,” “Watch List” or words of similar import, together with the principal amount of and accrued and unpaid interest on each such Loan as of June 30, 2012 and the identity of the borrower thereunder (and since January 1, 2011 there have been no such classifications by any Governmental Entity that are not so classified by the Company), (2) by category of Loan (i.e., commercial, consumer, or other commonly used category designation), all the other Loans of the Company or any of its Subsidiaries that as of June 30, 2012 were classified as such, together with the aggregate principal amount of and aggregate accrued and unpaid interest on such Loans by category as of June 30, 2012, and (3) each asset of the Company that as of June 30, 2012 was classified as “Other Real Estate Owned” and the book value thereof.

(ii)Each Loan of the Company or any of its Subsidiaries in original principal amount in excess of $5,000 (1) is evidenced by notes, Contracts or other evidences of indebtedness that are true, genuine and what they purport to be, (2) to the extent secured, has been secured by valid Encumbrances which have been perfected and (3) to the Knowledge of the Company, is the legal, valid and binding obligation of the obligor named therein, enforceable in accordance with its terms, subject to the Bankruptcy and Equity Exception.

(iii)Except as set forth in Section 3.02(u)(iii) of the Company Disclosure Schedule, none of the Contracts pursuant to which the Company or any of its Subsidiaries has sold Loans or pools of Loans or participations in Loans or pools of Loans contains any obligation to repurchase such Loans or interests therein, or entitle the buyer of such Loans or pools of Loans or participations in Loans or pools of Loans or any other Person to pursue any other form of recourse against the Company or its Subsidiaries. Since January 1, 2009, there has not been any claim made by any such buyer or other Person for repurchase or other similar form of recourse against the Company or any of its Subsidiaries.

(iv)Each of the Company and each of its Subsidiaries, as applicable, is approved by and is in good standing: (1) as a supervised mortgagee by the Department of Housing and Urban Development to originate and service Title I FHA mortgage Loans; (2) as a GNMA I and II Issuer by the Government National Mortgage Association; (3) by the Department of Veteran’s Affairs (“VA”) to originate and service VA Loans; (4) as a seller/servicer by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation to originate and service conventional residential mortgage Loans; and (5) by the Small Business Administration (“SBA”) to originate and service SBA Loans (each such entity being referred to herein as an “Agency” and, collectively, the “Agencies”).

(v)Except as set forth in Section 3.02(u)(v) of the Company Disclosure Schedule, neither the Company nor any of its Subsidiaries is now nor has it ever been since January 1, 2009 subject to any fine, suspension, settlement or other Contract or other administrative agreement or sanction by, or any reduction in any loan purchase

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commitment from, any Governmental Entity or Agency relating to the origination, sale or servicing of mortgage, SBA or consumer Loans. Neither the Company nor any of its Subsidiaries has received any notice, nor does it have any reason to believe as of the date of this Agreement, that any Agency proposes to limit or terminate the underwriting authority of the Company or any of its Subsidiaries or to increase the guarantee fees payable to any such Governmental Entity or Agency.

(vi) Each of the Company and each of its Subsidiaries is and has been in compliance in all material respects since January 1, 2008 with all applicable federal, state and local Laws, rules and regulations, including the Truth-In-Lending Act and Regulation Z, the Equal Credit Opportunity Act and Regulation B, the Real Estate Settlement Procedures Act and Regulation X, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, any regulations promulgated by the Consumer Financial Protection Bureau, SAFE Mortgage Licensing Act of 2008, the Small Business Investment Act of 1958, and all Agency and other investor and mortgage insurance company requirements, relating to the origination, sale and servicing of mortgage and consumer Loans.

(vii)To the Knowledge of the Company, each Loan included in a pool of Loans originated, acquired or serviced by the Company or any of its Subsidiaries (a “Pool”) meets all eligibility requirements (including all applicable requirements for obtaining mortgage insurance certificates and loan guaranty certificates) for inclusion in such Pool. All such Pools have been finally certified or, if required, recertified in accordance with all applicable laws, rules and regulations, except where the time for certification or recertification has not yet expired. To the Knowledge of the Company, no Pools have been improperly certified, and no Loan has been bought out of a Pool without all required approvals of the applicable investors.

(x)Insurance. To the Company’s Knowledge, each of the Company and each of its Subsidiaries maintains, and has maintained for the two years prior to the date of this Agreement, insurance underwritten by insurers that, to the Company’s Knowledge, are of recognized financial responsibility, of the types and in the amounts that the Company and its Subsidiaries reasonably believe are adequate for their respective businesses, including insurance covering all real and personal property owned or leased by the Company or any of its Subsidiaries against theft, damage, destruction, acts of vandalism and all other risks customarily insured against, with such deductibles as are customary, to the Company’s Knowledge, for companies in the same or similar business. True, correct and complete copies of all policies and binders of insurance currently maintained in respect of the assets, properties, business, operations, employees, officers or directors of the Company and its Subsidiaries, excluding such policies pursuant to which the Company, any of its Subsidiaries or an Affiliate of any of them acts as the insurer and which are identified with respective expiration dates on Section 3.02(v) of the Company Disclosure Schedule (collectively, the “Company Insurance Policies”), and all written correspondence relating to any material claims made since December 31, 2011 under the Company Insurance Policies, have been previously made available to Acquirer. To its Knowledge, all of the Company Insurance Policies are in full force and effect, the premiums due and payable thereon have been or will be timely paid through the Closing Date, and there is no breach or default (and

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no condition exists or event has occurred which, with the giving of notice or lapse of time or both, would constitute such a breach or default) by the Company or any of its Subsidiaries under any of the Company Insurance Policies or, to the Knowledge of the Company, by any other party to the Company Insurance Policies, except for any such breach or default that would not reasonably be expected to have, individually or in the aggregate, a material impact on the Company and its Subsidiaries, taken as a whole. Neither the Company nor any of its Subsidiaries has received any written notice of cancellation or non-renewal of any such Company Insurance Policy nor, to the Knowledge of the Company, is the termination of any such policies threatened.

(y)Intellectual Property. To the Company’s Knowledge, the Company and its Subsidiaries own or otherwise have a valid license to use all trademarks, service marks and trade names (including any registrations or applications for registration of any of the foregoing) (collectively, the “Company Intellectual Property”) necessary to carry on their business substantially as currently conducted, except where such failures to own or validly license such Company Intellectual Property would not, individually or in the aggregate, reasonably be materially adverse to the Company. Neither the Company nor any such Subsidiary has received any notice of infringement of or conflict with, and to the Knowledge of the Company, there are no infringements of or conflicts with, the rights of others with respect to the use of any Company Intellectual Property which would, individually or in the aggregate, reasonably be materially adverse to the Company.

(z)Brokers and Finders. None of the Company, any of its Subsidiaries or any of their respective officers, directors, employees or agents has employed any broker or finder or incurred any liability for any financial advisory fees, brokerage fees, commissions or finder’s fees, and no broker or finder has acted directly or indirectly for the Company or any of its Subsidiaries, in connection with this Agreement or the transactions contemplated hereby, except that the Company has employed Keefe Bruyette & Woods, Inc. as its financial advisor in connection therewith.

(aa)Related Party Transactions.

(i)Except as set forth in Section 3.02(y)(i) of the Company Disclosure Schedule or as part of the normal and customary terms of an individual’s employment or service as a director, neither the Company nor any of its Subsidiaries is party to any extension of credit (as debtor, creditor, guarantor or otherwise), Contract for goods or services, lease or other Contract with any (1) Affiliate, (2) insider or related interest of an insider, (3) shareholder owning five percent (5%) or more of the outstanding Common Stock or related interest of such a shareholder or (4) employee who is not an executive officer (other than credit and consumer banking transactions in the ordinary course of business) (each, a “Related Party Contract”). For purposes of the preceding sentence, the terms “insider,” “related interest,” and “executive officer” shall have the meanings assigned in the Federal Reserve’s Regulation O.

(ii)Each of the Company, Bank and each of the Company’s other Subsidiaries is in compliance with, and has since December 31, 2006, complied with, Sections 23A

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and 23B of the Federal Reserve Act, its implementing regulations, and Federal Reserve Board Regulation O.

(bb)Information Supplied. None of the information supplied or to be supplied by or on behalf of the Company for inclusion or incorporation by reference in the Form S-4 Registration Statement will, at the time the Form S-4 Registration Statement is filed with the SEC or at the time it becomes effective under the Securities Act, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they are made, not misleading. None of the information supplied or to be supplied by or on behalf of the Company for inclusion or incorporation by reference in the Proxy Statement or otherwise used in the solicitation of shareholders of the Company to approve this Agreement and the transactions contemplated hereby will, at the time the Proxy Statement is mailed to the shareholders of the Company or otherwise used or at the time of the Shareholders Meeting, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they are made, not misleading.

ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF ACQUIRER

Section 4.01Representations and Warranties of Acquirer. Acquirer hereby represents and warrants to the Company, that, except as Previously Disclosed:

(cc)Organization, Good Standing and Qualification.

(i)Acquirer is duly organized, validly existing and in good standing under the laws of State of Delaware. Acquirer is a bank holding company duly registered under the BHCA and meets the applicable requirements for qualification as such. Acquirer has all corporate power and authority to own or lease all the assets owned or leased by it and to conduct its business as it is now being conducted. Acquirer is duly licensed or qualified to do business and in good standing as a foreign corporation in all jurisdictions (i) in which the nature of the activities conducted by Acquirer requires such licensure or qualification and (ii) in which Acquirer owns or leases real property, other than any failures to be so licensed or qualified that (iii) would not reasonably be expected to have or result in any material adverse impact on Acquirer. The articles of incorporation of Acquirer comply with applicable Law. A true, complete and correct copy of each of the certificate of incorporation and the bylaws of Acquirer, as amended and currently in effect, has been delivered or made available to the Company.

(ii)Acquirer Bank is a commercial bank, duly organized, validly existing and in good standing under the Laws of the State of California and engages only in activities permitted by Law. Acquirer Bank (1) has all requisite corporate power and authority to own, operate and lease its properties and to carry on its business as it is currently being conducted (including all requisite authority to operate outside California where applicable) and (2) is in good standing and is duly qualified to do business in each

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jurisdiction in which the character of its properties owned or held under lease or the nature of its business makes such qualification necessary. Acquirer Bank’s deposit accounts are insured by the FDIC to the fullest extent permitted under applicable Law.

(dd)Authorization.

(i)No vote of holders of capital stock of Acquirer is necessary to approve this Agreement and the Merger and the other transactions contemplated hereby, including under any applicable Law or the requirements of any stock exchange. Acquirer has all requisite corporate power and authority and has taken all corporate action necessary to execute, deliver and perform its obligations under this Agreement, and to consummate the Merger and the other transactions contemplated hereby. This Agreement has been duly executed and delivered by Acquirer and, assuming due authorization, execution and delivery by the Company, is a valid and binding agreement of Acquirer, enforceable against Acquirer in accordance with its terms, subject to the Bankruptcy and Equity Exception. No other corporate proceedings are necessary for the execution and delivery by Acquirer of this Agreement, the performance by it of its obligations hereunder or the consummation by it of the transactions contemplated hereby.

(ii)Acquirer’s board of directors (the “Acquirer Board”) has received the opinion of its financial advisor, Raymond James Financial, Inc. to the effect that, subject to the assumptions, qualifications and limitations set forth therein, as of the date of such opinion, the Per Share Merger Consideration is fair to the holders of Acquirer Common Stock from a financial point of view. It is agreed and understood that such opinion is for the benefit of the Acquirer Board only and may not be relied upon by the Company or its shareholders or by any holders of capital stock of Acquirer.

(iii)The Acquirer Board has adopted resolutions (1) determining that this Agreement and the transactions hereby are advisable, and in the best interests of Acquirer and its shareholders and (2) approving this Agreement and the transactions contemplated hereby.

(iv)Neither the execution and delivery by Acquirer of this Agreement, nor the consummation of the transactions contemplated hereby, nor compliance by Acquirer with any of the provisions hereof, will (1) violate, conflict with, or result in a breach of any provision of, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or result in the loss to Acquirer or any of its Subsidiaries of any benefit or creation of any right on the part of any third party under, or accelerate the performance required by, or result in a right of termination or acceleration of, or result in the creation of any Encumbrances upon any of the material properties or assets of Acquirer or any of its Subsidiaries under any of the terms, conditions or provisions of (x) the certificate of incorporation or bylaws of Acquirer or the articles of incorporation, charter, bylaws or other governing instruments of any of its Subsidiaries or (y) any material Contract or license to which Acquirer or any of its Subsidiaries is a party or by which it may be bound, or to which Acquirer or any of its Subsidiaries or any of the properties or assets of Acquirer or any of its Subsidiaries

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may be subject, or (2) violate any Law or Order applicable to Acquirer or any of its Subsidiaries or any of their respective properties or assets.

(ee)Acquirer SEC Reports.

(i)Acquirer has filed all forms, reports, and documents required to be filed by it with the SEC since December 31, 2011. Except to the extent available in full without redaction on the SEC’s website through EDGAR two days prior to the date of this Agreement, Acquirer has delivered to the Company copies in the form filed with the SEC (including the full text of any document filed subject to a request for confidential treatment) of all forms, reports, registration statements and other documents (other than preliminary materials if the corresponding definitive materials have been provided to the Company) filed by the Acquirer with the SEC since December 31, 2011 (such forms, reports, registration statements, and other documents, whether or not available through EDGAR, are collectively referred to herein as the “Acquirer SEC Reports”).

(ii)Each of the Acquirer SEC Reports (1) as of the date of the filing of such report, complied as to form with the requirements of the Securities Act and the Exchange Act, and the rules and regulations thereunder, and (2) as of its filing date (or, if amended or superseded by a subsequent filing prior to the date hereof, on the date of such filing) did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading.

(ff)NASDAQ Listing and Compliance. The outstanding shares of Acquirer Common Stock are listed for trading on the NASDAQ. Acquirer is, and since December 31, 2011 has been, in compliance with the applicable listing rules and corporate governance rules and regulations of NASDAQ.

(gg)Acquirer Financial Statements. Each of the financial statements (including, in each case, the notes thereto) of Acquirer contained or incorporated by reference in the Acquirer SEC Reports complied with the rules and regulations of the SEC as of the date of the filing of such reports, was prepared in accordance with GAAP and fairly presents the financial condition and the results of operations, changes in shareholders’ equity, and cash flows of Acquirer and its Subsidiaries as of the dates of and for the periods referred to in such financial statements, subject in the case of interim financial statements to (i) the omission of notes to the extent permitted by Regulation S-X and (ii) normal, recurring year-end adjustments. The financial statements of Acquirer referred to in this Section 4.01(e) reflect the consistent application of such accounting principles throughout the periods involved, except as disclosed in the notes to such financial statements.

(hh)Brokers and Finders. Except that Acquirer has employed Raymond James Financial, Inc. to provide its opinion to the Acquirer Board regarding the fairness of the Merger to Acquirer from a financial point of view, none of Acquirer, its Affiliates or any of their respective officers, directors, employees or agents has employed any broker or finder or incurred any liability for any financial advisory fees, brokerage fees, commissions or finder’s fees, and no

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broker or finder has acted directly or indirectly for Acquirer, in connection with this Agreement or the transactions contemplated hereby that will require any payment by the Company.

(ii)Certain Information. None of the information provided in writing by, and relating to Acquirer or Acquirer Bank or any of their respective Subsidiaries included in any registration statement or proxy statement contemplated under this Agreement will contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, that information provided as of a later date shall be deemed to modify information provided as of an earlier date.

(jj)Stock Validity. At the Effective Time, the Acquirer Stock issued in connection with the Merger will be duly authorized and validly issued and fully paid and nonassessable, subject to an effective registration statement with the SEC, freely tradeable without any restrictions, and not subject to any preemptive rights to subscribe for or purchase securities.

ARTICLE V
COVENANTS RELATING TO CONDUCT OF BUSINESS

Section 5.01Conduct of Businesses Prior to the Effective Time. Except as required by applicable Law, or with the prior written consent of Acquirer, during the period from the date of this Agreement to the Effective Time, the Company shall, and shall cause each of its Subsidiaries to, (a) conduct its business only in the ordinary course, consistent with past practice, (b) use commercially reasonable best efforts to maintain and preserve its business organizations intact and maintain existing relations and goodwill with Governmental Entities, customers, suppliers, distributors, creditors, lessors, landlords, Employees and business associates, to keep available the services of its and its Subsidiaries’ Employees and to maintain its branch network, (c) not take any action that could reasonably be expected to delay the receipt by the Company or Acquirer of any necessary approvals of any Governmental Entity required for the transactions contemplated hereby or to perform its covenants and agreements under this Agreement or to consummate the transactions contemplated hereby and (d) pay investment banking fees, legal fees, data processing termination penalty and other normal transaction fees prior to or concurrent with the Effective Date, and not pay any other fees or costs in excess of $150,000 that are outside the Company’s normal business prior to the Effective Date.

Section 5.02Company Forbearances. During the period from the date of this Agreement to the Effective Time, except as Previously Disclosed, as expressly permitted by this Agreement or as required by applicable Law, the Company shall not, and shall not permit any of its Subsidiaries to, without the prior written consent of Acquirer:

(a)(i) Issue, sell or otherwise permit to become outstanding, or dispose of or encumber or pledge, or authorize or propose the creation of, any additional shares of its stock other than in connection with the exercise of Company Stock Options that are outstanding as of the date of this Agreement, or (ii) authorize or cause any additional shares of its stock to become subject to new grants under the Company Stock Plan or otherwise.

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(b)(i) Make, declare, pay or set aside for payment any dividend on or in respect of, or declare or make any distribution on any shares of its stock (other than dividends from its wholly owned Subsidiaries to it or another of its wholly owned Subsidiaries) or (ii) directly or indirectly adjust, split, combine, redeem, reclassify, purchase or otherwise acquire, any shares of its stock (other than repurchases in the ordinary course of business to satisfy obligations under Benefit Plans).

(c)Amend the terms of, waive any material rights under, fail to use reasonable best efforts to enforce, terminate, knowingly violate the terms of or enter into any Material Contracts.

(d)Sell, transfer, mortgage, encumber, license, let lapse, cancel, abandon or otherwise dispose of or discontinue any of its assets, deposits, business or properties, except for sales, transfers, mortgages, encumbrances, licenses, lapses, cancellations, abandonments or other dispositions or discontinuances in the ordinary course of business and consistent with past practice.

(e)Acquire (other than by way of foreclosures, deeds in lieu of foreclosure, or acquisitions of control in a fiduciary or similar capacity or in satisfaction of debts previously contracted in good faith, in each case in the ordinary course of business consistent with past practice) all or any portion of the assets, business, deposits or properties of any other entity.

(f)Amend the articles of incorporation or bylaws of the Company, or similar governing documents of any of its Subsidiaries.

(g)Implement or adopt any change in its financial or regulatory accounting principles, practices or methods, other than as required by GAAP or applicable regulatory accounting requirements.

(h)Except for any retention plan to which the Parties mutually agree or as required by the terms of any Benefit Plan existing as of the date hereof (i) increase in any manner the compensation or benefits of any of the current or former directors, officers, employees, consultants, independent contractors or other service providers of the Company or any of its Subsidiaries (collectively, “Employees”), other than increases to Employees who are not directors or executive officers of the Company or any of its Subsidiaries that are in the ordinary course of business consistent with past practice, (ii) become a party to, establish, amend, commence participation in, terminate or commit itself to the adoption of any stock option plan or other stock-based compensation plan, compensation, severance, pension, retirement, profit-sharing, welfare benefit, or other employee benefit plan or Contract or employment agreement with or for the benefit of any Employee (or prospective Employees), (iii) accelerate the vesting of or lapsing of restrictions with respect to any stock-based compensation or other long-term incentive compensation, other compensation or benefits under any Benefit Plans, (iv) cause the funding of any rabbi trust or similar arrangement or take any action to fund or in any other way secure the payment of compensation or benefits under any Benefit Plan or (v) change any actuarial assumptions used to calculate funding obligations with respect to any Benefit Plan that is required by applicable Law to be funded or change the manner in which contributions to such plans are made or the basis on which such contributions are determined, except as may be

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required by GAAP. For the purposes of this Section 5.02(h), “executive officer” shall mean any officer who is in charge of a principal business unit, division or function and any other Person who performs a policy-making function for the Company or Company Bank.

(i)Hire or engage the services of any individual except for the hiring or engagement of any individual with an annual rate of pay (which for purposes hereof shall include base salary or wages and target annual bonus, if any) less than $100,000.

(j)Incur or guarantee any indebtedness for borrowed money other than in the ordinary course of business consistent with past practice and not in excess of $500,000 in the aggregate, except for Federal Home Loan Bank advances obtained in the ordinary course of business.

(k)(i) Enter into any new line of business or (ii) materially change its lending, investment, underwriting, risk, compliance and asset/liability management and other banking and operating policies, except as required by a Governmental Entity.

(l)Make any material change to (i) its investment securities portfolio, derivatives portfolio or its interest rate exposure, through purchases, sales or otherwise, or (ii) the manner in which such portfolio is classified or reported, except as required by a Governmental Entity.

(m)Settle any action, suit, claim or proceeding against it or any of its Subsidiaries, except for an action, suit, claim or proceeding that is settled in an amount and for consideration not in excess of $50,000 and that would not (i) impose any restriction on it or its Subsidiaries or on Acquirer or any of its Affiliates or (ii) create precedent for claims that is reasonably likely to be material to it or its Subsidiaries.

(n)Make application for the opening, relocation or closing of any, or open, relocate or close any, branch office, loan production office or other significant office or operations facility other than such applications that have been submitted and announced as of the date of this Agreement.

(o)Make or change any material Tax election, change or consent to any change in its or its Subsidiaries’ material method of accounting for Tax purposes, settle or compromise any material Tax liability, claim or assessment, enter into any closing agreement, waive or extend any statute of limitations with respect to a material amount of Taxes, surrender any right to claim a refund for a material amount of Taxes, or file any material amended Tax Return.

(p)(i) Merge or consolidate the Company or any of its Subsidiaries with any other Person or restructure, reorganize or completely or partially liquidate or (ii) otherwise enter into any Contracts or arrangements imposing material changes or restrictions on its assets, operations or businesses.

(q)Create or incur any Encumbrance material to the Company and its Subsidiaries, taken as a whole, not incurred in the ordinary and usual course of business consistent with past practice.

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(r)Acquire any Loans through bulk purchases that are not in the process as of the date of this Agreement.

(s)Make any capital contributions to or investments (other than to be held in a fiduciary or agency capacity to be beneficially owned by third Parties) in any Person (other than to or in any direct or indirect wholly owned Subsidiary of the Company).

(t)Except as set forth in the capital budgets set forth in Section 5.02(t) of the Company Disclosure Schedule and consistent therewith, make or authorize any capital expenditure in excess of $50,000.

(u)Take any action that would reasonably be expected to result in any of the conditions to the Merger set forth in Article VII not being satisfied.

(v)Agree to take, make any commitment to take, or adopt any resolutions of the Company Board in support of, any of the actions prohibited by this Section 5.02.

ARTICLE VI
ADDITIONAL AGREEMENTS

Section 6.01Cooperation; Regulatory Matters.

(w)Each of the Parties shall cooperate with the other Party and use its commercially reasonable best efforts to take or cause to be taken all actions, and do or cause to be done all things, reasonably necessary, proper or advisable on its part under this Agreement and applicable Law to consummate the Merger, the Bank Merger and other transactions contemplated by this Agreement as soon as practicable, including promptly preparing and filing (or causing any required Affiliate to promptly prepare and file) all necessary documentation (the “Required Filings”) to make all applications, notices, petitions and filings, to obtain as promptly as practicable all permits, consents, approvals, agreements, authorizations and indications of non-objection (including all Requisite Regulatory Consents) of all Governmental Entities and other third parties that are necessary or advisable to consummate the transactions contemplated by this Agreement (including the Merger and the Bank Merger), and to comply with the terms and conditions of all such Requisite Regulatory Consents, permits, consents, approvals, agreements, authorizations and indications of non-objection of all Governmental Entities and other third parties. Without limiting the generality of the foregoing, the Parties agree to use their commercially reasonable best efforts to cause all Required Filings with respect to any Requisite Regulatory Consent to be completed and filed no later than twenty (20) Business Days after the date of this Agreement. The Company and Acquirer shall have the right to review in advance, and, to the extent practicable, each will consult the other on, in each case subject to applicable Laws, all the information relating to the Company or Acquirer, as the case may be, or any of their respective Affiliates, that appear in any Required Filings. In exercising the foregoing rights set forth in this Section 6.01(a), Acquirer will take the lead in preparing required applications and notices, but each of the Parties shall act reasonably and as promptly as practicable. The Parties shall consult with each other with respect to the obtaining of all permits, consents, approvals and authorizations of all third parties and Governmental Entities necessary or advisable to

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consummate the transactions contemplated by this Agreement and each Party will keep the other apprised on a current basis of the status of matters, and any material communication to, with or from a Governmental Entity, relating to, or reasonably likely to affect the timely completion of, the transactions contemplated by this Agreement.

(x)Each of Acquirer and the Company shall, upon request, furnish to the other all information concerning itself, its Affiliates, Subsidiaries, directors, officers and shareholders and such other matters as may be reasonably necessary or advisable in connection with the Proxy Statement, as applicable, or any other statement, filing, notice or application made by or on behalf of Acquirer or any of its Affiliates, or the Company or any of its Subsidiaries, to any Governmental Entity in connection with the Merger, the Bank Merger or any of the other transactions contemplated by this Agreement.

(y)In furtherance and not in limitation of the foregoing, each of Acquirer (and Acquirer shall cause its Subsidiaries to) and the Company (and the Company shall cause its Subsidiaries to) shall use its reasonable best efforts to (i) avoid the entry of, or to have vacated, lifted, reversed or overturned any decree, judgment, injunction or other order, whether temporary, preliminary or permanent, that would restrain, prevent or delay the Closing, and (ii) avoid or eliminate each and every impediment under any applicable Law so as to enable the Closing to occur as soon as possible; provided, however, that nothing in this Agreement, including this Section 6.01, shall require, or be construed to require, Acquirer or any of its Affiliates to (x) proffer to, or agree to, sell, divest, or otherwise dispose of before or after the Effective Time, any assets, licenses, operations, rights, product lines, businesses or interest therein of Acquirer, the Company or any of their respective Affiliates, (y) agree to any conditions or make any commitments that are not comparable to those imposed in connection with comparable transactions and that would not be reasonably foreseeable based upon publicly available information, or (z) agree to any material changes or restriction on, or other impairment of Acquirer’s ability to own or operate, any of any such assets, licenses, operations, rights, product lines, businesses or interests therein or Acquirer’s or any of its Affiliates’ ability to vote, transfer, receive dividends or otherwise exercise full ownership rights with respect to the stock of the Surviving Corporation, in each case measured on a scale relative to the Company and its Subsidiaries, taken as a whole (each, a “Burdensome Condition”).

(z)Each of Acquirer and the Company shall promptly advise the other upon receiving (including through their respective Affiliates) any communication from a Governmental Entity the consent or approval of which is required for consummation of the transactions contemplated by this Agreement that causes such Party to believe that there is a reasonable likelihood that any Requisite Regulatory Consent will not be obtained without the imposition of a Burdensome Condition or that the receipt of any such approval may be delayed.

Section 6.02Access to Information.

(a)Upon reasonable notice and subject to applicable Laws and with an effort to minimize business disruption, the Company shall, and shall cause each of its Subsidiaries to, afford to the officers, directors, employees, agents and the Representatives of Acquirer, reasonable access, during normal business hours during the period prior to the Effective Time, to

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all its properties, books, Contracts, commitments and records, and, during such period, the Company shall, and shall cause its Subsidiaries to, make available to Acquirer (i) a copy of each report, schedule, registration statement and other document filed or received by it during such period pursuant to the requirements of federal or state banking Laws (other than reports or documents that the Company is not permitted to disclose under applicable Law) and (ii) all such other information concerning its business, properties and personnel as Acquirer may reasonably request. Neither the Company nor any of its Affiliates shall be required to provide access to or to disclose information where such access or disclosure would jeopardize the attorney-client privilege of such party or contravene any Law, fiduciary duty or Order or binding Contract entered into prior to the date of this Agreement. The Parties shall make appropriate substitute disclosure arrangements under circumstances in which the restrictions of the preceding sentence apply.

(b)All nonpublic information and materials provided prior to or after the date of this Agreement shall be subject to the provisions of the confidentiality agreement entered into between the Parties as of March 1, 2012 (the “Confidentiality Agreement”).

(c)No investigation by a party hereto or its representatives shall affect or be deemed to modify or waive any representations, warranties or covenants of the other Party set forth in this Agreement.

Section 6.03Employee Matters.

(a)Acquirer shall have the sole right and discretion to determine which Persons shall remain as Employees after the Closing Date. Following the Closing Date, Acquirer shall maintain or cause to be maintained employee benefit plans and compensation opportunities for the benefit of Employees who remain actively employed by the Company or its Subsidiaries after the Closing Date (“Covered Employees”) that provide employee benefits and compensation opportunities that, in the aggregate, are no less favorable than the employee benefits and compensation opportunities that are generally made available to similarly situated employees of Acquirer or its Subsidiaries (other than the Surviving Corporation and its Subsidiaries) (collectively, the “Acquirer Plans”), as applicable; provided, that (i) with respect to retirement benefits, satisfaction of the foregoing standard shall not require that any Covered Employee be eligible to participate in any specific retirement plan of Acquirer or a closed or frozen Acquirer Plan; and (ii) until such time as Acquirer shall cause Covered Employees to participate in the Acquirer Plans, a Covered Employee’s continued participation in the employee benefit plans and compensation opportunities of the Company and its Subsidiaries as in effect immediately prior to the Closing Date shall be deemed to satisfy the foregoing provisions of this sentence (it being understood that participation in the Acquirer Plans may commence at different times with respect to each Acquirer Plan).

(b)Nothing in this Section 6.03 shall be construed to limit the right of Acquirer or any of its Affiliates (including, following the Closing Date, the Surviving Corporation and its Subsidiaries) to amend or terminate any Benefit Plan or other employee benefit plan, to the extent such amendment or termination is permitted by the terms of the applicable plan, nor shall anything in this Section 6.03 be construed to require Acquirer or any of its Affiliates (including,

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following the Closing Date, the Surviving Corporation and its Subsidiaries) to maintain any Acquirer Plan or retain the employment of any particular Covered Employee for any fixed period of time following the Closing Date. This Agreement shall inure exclusively to the benefit of, and be binding upon the Parties hereto and their respective successors, assigns, executors and legal representatives. Nothing in this Agreement, express or implied, including without limitation this Section 6.03, is intended to confer on any person other than the Parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement.

Section 6.04Indemnification; Directors’ and Officers’ Insurance.

(a)From and after the Effective Time, the Surviving Corporation shall indemnify, defend and hold harmless, to the extent permitted under applicable Law (and shall also advance expenses as incurred to the extent permitted under applicable Law and the certificate of incorporation and bylaws of the Surviving Corporation), each present and former director and officer of the Company or its Subsidiaries (in each case, to the extent acting in such capacity), determined as of the Effective Time (collectively, the “Indemnified Parties”) against any costs or expenses (including reasonable attorneys’ fees), judgments, fines, losses, claims, damages or liabilities incurred in connection with any claim, action, suit, proceeding or investigation, whether civil, criminal, administrative or investigative, actual or threatened, arising out of facts or matters existing or occurring at or prior to the Effective Time, including the transactions contemplated by this Agreement; provided, that the Indemnified Party to whom expenses are advanced provides an undertaking to repay such advances if it is ultimately determined that such Indemnified Party is not entitled to indemnification by the Surviving Corporation.

(b)The Surviving Corporation shall provide the directors and officers liability insurance (the “D&O Insurance”) to the Indemnified Parties for a period of six years from and after the Effective Time with $3,000,000 of coverage; provided, however, that in no event shall the Surviving Corporation be required to expend for such D&O Insurance a premium amount in excess of 200% of the annual premium paid by the Company for such insurance during its last renewal (“Initial Premium”); provided, further, that if the premium amount of such insurance coverage would exceed 200% of Initial Premium amount, the Surviving Corporation shall obtain a policy or policies of D&O Insurance for such Persons with the greatest coverage available for a cost not exceeding 200% of Initial Premium amount.

(c)Any Indemnified Party wishing to claim indemnification under Section 6.04(a), upon learning of any claim, action, suit, proceeding or investigation described above, will promptly notify the Surviving Corporation; provided, that failure to so notify will not affect the obligations of Acquirer under Section 6.04(a) unless and to the extent that the Surviving Corporation is actually and materially prejudiced as a consequence.

(d)The provisions of this Section 6.04 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party.

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Section 6.05Acquisition Proposals.

(a)The Company agrees that it shall not, and shall cause the officers, directors, employees, agents and representatives, including any investment banker, financial advisor, attorney, accountant or other advisor, agent, representative or Affiliate (collectively as to each Party, the “Representatives”) of the Company or any of its Subsidiaries not to, directly or indirectly:

(i)initiate, solicit or encourage any inquiries or the making of any proposal or offer that constitutes, or could reasonably be expected to lead to, any Acquisition Proposal;

(ii)engage in, continue or otherwise participate in any discussions or negotiations regarding, or provide any information or data to any Person relating to, any Acquisition Proposal; or

(iii)otherwise knowingly facilitate any effort or attempt to make an Acquisition Proposal.

(b)Notwithstanding anything in Section 6.05(a) to the contrary, prior to the time, but not after, the Requisite Shareholder Approval is obtained, the Company may (i) provide information in response to a request therefor by a Person who has made an unsolicited bona fide written Acquisition Proposal providing for the acquisition of more than 50% of the assets (on a consolidated basis) or total voting power of the equity securities of the Company if the Company receives from the Person so requesting such information an executed confidentiality agreement on terms not less restrictive to the other party than those contained in the Confidentiality Agreement and substantially concurrently (and in any event within two (2) Business Days) discloses (and, if applicable, provides copies of) any such information to Acquirer to the extent not previously provided to Acquirer; (ii) engage or participate in any discussions or negotiations with any Person who has made such an unsolicited bona fide written Acquisition Proposal; or (iii) after having complied with all requirements of Section 6.05(c) and Section 6.05(d), approve, recommend, or otherwise declare advisable or propose to approve, recommend or declare advisable (publicly or otherwise) such an Acquisition Proposal, if, but only to the extent that, (x) prior to taking any action described in clause (i), (ii) or (iii) above, the Company Board determines in good faith after consultation with outside legal counsel that failure to take such action, in light of the Acquisition Proposal and the terms of this Agreement, would be inconsistent with the directors’ fiduciary duties under applicable Law, (y) in each such case referred to in clause (i) or (ii) above, the Company Board has determined in good faith after consultation with its financial advisor and outside legal counsel that such Acquisition Proposal constitutes a Superior Proposal, and (z) in the case referred to in clause (iii) above, the Company Board determines in good faith after consultation with its financial advisor and outside legal counsel that such Acquisition Proposal is a Superior Proposal.

(c)The Company Board shall not withhold, withdraw, qualify or modify (or publicly propose or resolve to withhold, withdraw, qualify or modify), in a manner adverse to Acquirer, the Company Board Recommendation with respect to the Merger. Notwithstanding the

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preceding sentence, prior to the time, but not after, the Requisite Shareholder Approval is obtained, the Company Board may withhold, withdraw, qualify or modify the Company Board Recommendation or approve, recommend or otherwise declare advisable any Superior Proposal made after the date of this Agreement that was not solicited, initiated, encouraged or facilitated in breach of this Agreement, if the Company Board determines in good faith, after consultation with outside counsel, that failure to do so would be in violation of the directors’ fiduciary duties under applicable Law (a “Change of Recommendation”); provided, however, that no Change of Recommendation may be made, and, for the avoidance of doubt, no action referred to in Section 6.05(b)(iii) shall be taken, until after at least 72 hours following Acquirer’s receipt of notice from the Company advising that the Company currently intends to take such action and the basis therefor, including all necessary information under Section 6.05(e). In determining whether to make a Change of Recommendation or, for the avoidance of doubt, whether to take any action referred to in Section 6.05(b)(iii), in response to a Superior Proposal or otherwise, the Company Board shall take into account any changes to the terms of this Agreement proposed by Acquirer and any other information provided by Acquirer in response to such notice. Any material amendment to any Acquisition Proposal will be deemed to be a new Acquisition Proposal for purposes of this Section 6.05, including with respect to the notice periods referred to in this Section 6.05(c) and Section 6.05(e).

(d)The Company agrees that it will immediately cease and cause to be terminated any existing activities, discussions or negotiations with any parties conducted prior to the date hereof with respect to any Acquisition Proposal. The Company agrees that it will take the necessary steps to promptly inform the individuals or entities referred to in the first sentence hereof of the obligations undertaken in this Section 6.05 and in the Confidentiality Agreement. The Company also agrees that it will promptly request each Person that has heretofore executed a confidentiality agreement in connection with such Person’s consideration of acquiring the Company or any of its Subsidiaries to return or destroy all confidential information heretofore furnished to such Person by or on behalf of it or any of its Subsidiaries.

(e)The Company agrees that it will promptly (and, in any event, within two (2) Business Days) notify Acquirer if any inquiries, proposals or offers with respect to an Acquisition Proposal are received by, any such information is requested from, or any such discussions or negotiation are sought to be initiated or continued with, it or any of its Representatives indicating, in connection with such notice, the name of such Person and the material terms and conditions of any proposals or offers (including, if applicable, copies of any written requests, proposals or offers, including proposed Contracts) and thereafter shall keep Acquirer informed, on a current basis, of any material changes in the status and terms of any such proposals or offers (including any amendments thereto) and any material changes in the status of any such discussions or negotiations, including any change in the Company’s intentions as previously notified.

Section 6.06Takeover Laws. No Party will take any action that would cause the transactions contemplated by this Agreement to be subject to requirements imposed by any Takeover Law and each Party will take all necessary steps within its control to exempt (or ensure

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the continued exemption of) those transactions from, or if necessary challenge the validity or applicability of, any applicable Takeover Law, as now or hereafter in effect.

Section 6.07Financial Statements and Other Current Information. As soon as reasonably practicable after they become available, but in no event more than thirty (30) days after the end of each calendar month ending after the date hereof, the Company will put in the Data Room or, at the Company’s election, furnish to such Person as may be specified by Acquirer, pursuant to notice requirements set forth in Section 9.04, (a) consolidated financial statements (including balance sheets, statements of operations and shareholders’ equity) of the Company or any of its Subsidiaries (to the extent available) as of and for such month then ended, (b) to the extent available, internal management reports showing actual financial performance against plan and previous period and (c) to the extent permitted by applicable Law, any reports provided to the Company Board or any committee thereof relating to the financial performance and risk management of the Company or any of its Subsidiaries.

Section 6.08Shareholders Meeting. The Company will take, in accordance with applicable Law and its certificate of incorporation and bylaws, all action necessary to convene a meeting of holders of Shares (the “Shareholders Meeting”) as promptly as practicable after the date hereof, to consider and vote upon the adoption of this Agreement, and shall not postpone or adjourn such meeting except to the extent required by Law. Subject to Section 6.05(c) hereof, the Company Board shall recommend the adoption of this Agreement by the Requisite Shareholder Approval and shall take all lawful action to solicit such adoption of this Agreement. The obligation of the Company to hold the Shareholders Meeting shall not be affected by any Acquisition Proposal or other event or circumstance and the Company agrees that it will not submit any Acquisition Proposal to its shareholders for a vote at the Shareholder Meeting convened to consider and vote upon the adoption of this Agreement.

Section 6.09Notification of Certain Matters. The Company and Acquirer will give prompt notice to the other of any fact, event or circumstance known to it that (a) is reasonably likely, individually or taken together with all other facts, events and circumstances known to it, to result in any Company Material Adverse Effect or Acquirer Material Adverse Effect, respectively, or (b) would cause or constitute a material breach of any of its representations, warranties, covenants or agreements contained herein that reasonably could be expected to give rise, individually or in the aggregate, to the failure of a condition in Article VII; provided, however, that failure to give such notice shall not separately constitute a failure of any condition in Article VII or a basis to terminate this Agreement unless the underlying fact, event or circumstance would independently result in such failure or provide such basis. The Company shall give prompt notice to Acquirer of any legal, administrative, arbitral or other proceeding, claim or action, or governmental or regulatory investigation of any nature arising after the date hereof, but prior to the Effective Time.

Section 6.10Related Party Contracts. To the extent requested in writing by the Acquirer with respect to any specific identified contract prior to the Effective Time, the Company shall take all actions necessary to terminate, and shall cause to be terminated, each Related Party Contract, in each case without any further liability or obligation of the Company,

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the Surviving Corporation, Acquirer or any of their respective Subsidiaries or Affiliates and, in connection therewith, the Company (or its applicable Subsidiary) shall have received from the other party to such Related Party Contract a release in favor of the Company, the Surviving Corporation, Acquirer and their respective Subsidiaries and Affiliates from any and all liabilities or obligations arising out of such Related Party Contract.

Section 6.11Form S-4 Registration Statement. Acquirer shall use its commercially reasonable best efforts to cause the Form S-4 Registration Statement, in which the Company’s Proxy Statement for the Shareholders Meeting will be included, to be filed with the SEC no later than forty-five (45) Business Days after the date of this Agreement. Each of Acquirer and the Company shall use its commercially reasonable best efforts to have the Form S-4 Registration Statement declared effective under the Securities Act as promptly as practicable after such filing, and the Company shall thereafter mail or deliver the proxy statement contained therein to its shareholders. Acquirer shall also use its reasonable best efforts to obtain all necessary state securities law or “blue sky” permits and approvals required to carry out the transactions contemplated by this Agreement, and the Company shall furnish all information concerning the Company and the holders of the Company Common Stock that may be reasonably requested in connection with such action. Within 60 days after the Effective Time, the Acquirer shall cause the shares underlying the Assumed Options to be registered with the SEC under a registration statement on Form S-8, including, at Acquirer’s election, an amendment on Form S-8 of the Form S-4 Registration Statement.

Section 6.12NASDAQ Listing. Acquirer shall use its commercially reasonable best efforts to cause the shares of Acquirer Common Stock to be issued in the Merger to have been authorized for listing on the NASDAQ, subject to official notice of issuance, prior to the effective time.

Section 6.13Trust Preferred Securities. At the Effective Time, Acquirer shall assume the Company’s obligations under Company’s outstanding Unsecured Junior Subordinated Deferrable Interest Notes.

Section 6.14Tax Matters. During the period from the date of this Agreement to the Effective Time, (a) the Company and each of its Subsidiaries shall timely file all Tax Returns required to be filed by each such entity during such period (after taking into account any extensions) (each, a “Post-Signing Return”), which Post-Signing Returns shall be complete and correct in all respects and, except as otherwise required by Law, shall be prepared on a basis consistent with the past practice of the Company; provided, however, that no material Post-Signing Returns shall be filed with any Governmental Entity without Acquirer’s prior written consent, which consent shall not be unreasonably withheld or delayed; (b) the Company and each of its Subsidiaries shall timely pay all Taxes due and payable with respect to the Tax periods covered by such Post-Signing Returns; (c) the Company shall accrue a liability in its books and records and financial statements in accordance with GAAP and past practice for all Taxes payable by the Company or any of its Subsidiaries for which no Post-Signing Return is due prior to the Effective Time; (d) the Company and each of its Subsidiaries shall promptly notify Acquirer of any suit, claim, action, investigation, proceeding or audit pending against or with

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respect to the Company or any of its Subsidiaries in respect of any material amount of Tax and will not settle or compromise any such suit, claim, action, investigation, proceeding or audit without Acquirer’s prior written consent, which consent shall not be unreasonably withheld or delayed; and (e) the Company and each of its Subsidiaries shall retain all books, documents and records necessary for the preparation of Tax Returns and reports and Tax audits consistent with its standard policy.

ARTICLE VII
CONDITIONS PRECEDENT

Section 7.01Conditions to Each Party’s Obligation to Effect the Merger. The respective obligations of the Parties to effect the Merger shall be subject to the satisfaction or waiver at or prior to the Effective Time of each of the following conditions:

(d)Shareholder Approval. The Requisite Shareholder Approval shall have been obtained.

(e)No Injunctions or Restraints; Illegality. No order, injunction or decree issued by any Governmental Entity or other Law preventing or making illegal the consummation of the Merger or any of the other transactions contemplated by this Agreement shall be in effect.

(f)Regulatory Approvals. The Requisite Regulatory Consents shall have been obtained and shall remain in full force and effect and all statutory waiting periods in respect thereof shall have expired, without the imposition of any Burdensome Condition in connection therewith.

(g)Effectiveness of Form S-4 Registration Statement. The Form S-4 Registration Statement shall have been declared effective by the SEC in accordance with the provisions of the Securities Act, no stop order suspending the effectiveness of Form S-4 Registration Statement shall have been issued by the SEC, and no proceeding for that purpose shall have been initiated or threatened by the SEC.

(h)NASDAQ Listing. The shares of Acquirer Common Stock to be issued in the Merger pursuant to this Agreement shall have been approved for listing on the NASDAQ.

Section 7.02Conditions to Obligations of Acquirer. The obligations of Acquirer to effect the Merger are also subject to the satisfaction, or waiver by Acquirer, at or prior to the Effective Time, of the following conditions:

(c)Representations and Warranties. The representations and warranties of the Company set forth in this Agreement shall be true and correct in all material respects as of the date of this Agreement and as of the Effective Time as though made on and as of the Effective Time (except that representations and warranties that by their terms speak specifically as of the date of this Agreement or another date shall be true and correct as of such date); provided, however, that no representation or warranty of the Company (other than the representations and

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warranties set forth in the first two sentences of Section 3.02(a)(i) and the first sentence of Section 3.02(a)(ii), Section 3.02(b), Section 3.02(d)(i), Section 3.02(d)(iii) and Section 3.02(d)(iv)(1)(x), which shall be true and correct in all respects) shall be deemed untrue or incorrect for the purposes hereof as a consequence of the existence of any fact, event or circumstance inconsistent with such representation or warranty, unless such fact, event or circumstance, individually or taken together with all other facts, events or circumstances inconsistent with any representation or warranty of the Company, has had or would reasonably be expected to result in a Company Material Adverse Effect; provided, that for purposes of determining whether a representation or warranty is true and correct for purposes of this Section 7.02(a), any qualification or exception for, or reference to, materiality (including the terms “material,” “materially,” “in all material respects,” “Company Material Adverse Effect” or similar terms or phrases) in any such representation or warranty (other than in Section 3.02(j)(iv)) shall be disregarded; and Acquirer shall have received a certificate signed on behalf of the Company by the Chief Executive Officer and the Chief Financial Officer of the Company to their best Knowledge to the foregoing effect.

(d)Performance of Obligations of the Company. The Company shall have performed in all material respects all obligations required to be performed by it under this Agreement at or prior to the Effective Time; and Acquirer shall have received a certificate signed on behalf of the Company by the Chief Executive Officer and the Chief Financial Officer of the Company to such effect.

(e)Termination of Regulatory Agreements. Acquirer shall have obtained assurance satisfactory to Acquirer, that neither the Company’s Regulatory Agreements nor any other regulatory restrictions will apply to the Surviving Corporation or the Surviving Bank as a result of the Merger.

(f)Treasury Regulations Certificate. The Company shall have delivered to Acquirer a certificate described in Treasury Regulations section 1.897-2(h) in a form reasonably satisfactory to Acquirer.

(g)Absence of Material Adverse Effect. Since the date of this Agreement no Company Material Adverse Effect shall have occurred. Without limitation of changes that may constitute or be deemed to have had a Company Material Adverse Effect, deficiencies in the documentation of SBA Loans shall not constitute a Company Material Adverse Effect unless actual losses are incurred as a result thereof that constitute a Company Material Adverse Effect.

(h)Dissenters Rights. The holders of not more than 15% of the outstanding Company Common Stock shall have given timely notice of an intention to exercise dissenters’ rights under the applicable provisions of the WBCA.

Section 7.03Conditions to Obligations of the Company. The obligation of the Company to effect the Merger is also subject to the satisfaction or waiver by the Company at or prior to the Effective Time of the following conditions:

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(e)Representations and Warranties. The representations and warranties of Acquirer set forth in this Agreement shall be true and correct as of the date of this Agreement and as of the Effective Time as though made on and as of the Effective Time (except that representations and warranties that by their terms speak specifically as of the date of this Agreement or another date shall be true and correct as of such date); provided, however, that no representation or warranty of Acquirer shall be deemed untrue or incorrect for the purposes hereunder as a consequence of the existence of any fact, event or circumstance inconsistent with such representation or warranty, unless such fact, event or circumstance, individually or taken together with all other facts, events or circumstances inconsistent with any representation or warranty of Acquirer, has had or would reasonably be expected to result in an Acquirer Material Adverse Effect; provided, further, that for purposes of determining whether a representation or warranty is true and correct for purposes of this Section 7.03(a), any qualification or exception for, or reference to, materiality (including the terms “material,” “materially,” “in all material respects,” “Acquirer Material Adverse Effect” or similar terms or phrases) in any such representation or warranty shall be disregarded; and the Company shall have received a certificate signed on behalf of Acquirer by the Chief Executive Officer or the Chief Financial Officer of Acquirer to the foregoing effect.

(f)Performance of Obligations of Acquirer. Acquirer shall have performed in all material respects all obligations required to be performed by it under this Agreement at or prior to the Effective Time; and the Company shall have received a certificate signed on behalf of Acquirer by the Chief Executive Officer or the Chief Financial Officer of Acquirer to such effect.

(g)Absence of Acquirer Material Adverse Effect. Since the date of this Agreement no Acquirer Material Adverse Effect shall have occurred.

ARTICLE VIII
TERMINATION AND AMENDMENT

Section 8.01Termination. This Agreement may be terminated and the Merger may be abandoned (whether before or after receipt of the Requisite Shareholder Approval), at any time prior to the Effective Time:

(i)by mutual consent of the Company and Acquirer in a written instrument authorized by the Company Board and the Acquirer Board;

(j)by Acquirer, if, since the date of this Agreement, the Company shall have suffered a Company Material Adverse Effect;

(k)by the Company, if, since the date of this Agreement, Acquirer shall have suffered an Acquirer Material Adverse Effect;

(l)by either the Company or Acquirer, if any Governmental Entity that must grant a Requisite Regulatory Consent has denied such Requisite Regulatory Consent or any Governmental Entity of competent jurisdiction shall have initiated legal or administrative action

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seeking an order, injunction or decree permanently enjoining or otherwise prohibiting or making illegal the consummation of the transactions contemplated by this Agreement and such action shall not have been finally terminated;

(m)by either the Company or Acquirer, if the Merger shall not have been consummated on or before June 1, 2013 (the “Outside Date”) unless the failure of the Closing to occur by such date shall be due to the failure of the Party seeking to terminate this Agreement to perform or observe the covenants and agreements of such Party set forth in this Agreement; provided, however that the Outside Date shall be extended by a period of 90 days if the only outstanding contingency is receipt of a Requisite Regulatory Approval;

(n)by either the Company or Acquirer (provided, that the terminating Party is not then in material breach of any representation, warranty, covenant or other agreement contained herein), if there shall have been a breach of any of the covenants or agreements or any of the representations or warranties set forth in this Agreement on the part of the Company, in the case of a termination by Acquirer, or on the part of Acquirer, in the case of a termination by the Company, which breach, either individually or in the aggregate with other breaches by such Party, would result in, if occurring or continuing on the Closing Date, the failure of the conditions set forth in Section 7.02 or 7.03, as the case may be, and which is not cured within the earlier of (i) thirty (30) days following written notice to the Party committing such breach and (ii) the Outside Date or by its nature or timing cannot be cured within such time period;

(o)by either the Company or Acquirer, if the approval of this Agreement by holders of Shares constituting the Requisite Shareholder Approval shall not have been obtained at the Shareholders Meeting or at any adjournment or postponement of the Shareholders Meeting taken in accordance with this Agreement;

(p)by Acquirer, at any time prior to the time the Requisite Shareholder Approval is obtained, if (i) the Company Board shall have made a Change of Recommendation; (ii) the Company shall have materially violated Section 6.06, Section 6.07, Section 6.09 or Section 6.10; or (iii) at any time following receipt of an Acquisition Proposal, the Company Board shall have failed to reaffirm its approval or recommendation of this Agreement and the Merger as promptly as practicable (but in any event prior to the earlier of (x) within three Business Days after receipt of any written request to do so from Acquirer and (y) the date of the Shareholders Meeting).

The Party desiring to terminate this Agreement pursuant to this Section 8.01 shall give written notice of such termination to the other Party in accordance with Section 9.04, specifying the provision or provisions hereof pursuant to which such termination is effected.

Section 8.02Effect of Termination.

(h)In the event of termination of this Agreement by either the Company or Acquirer as provided in Section 8.01, this Agreement shall forthwith become void and of no effect, and none of the Company, Acquirer, any of their respective Subsidiaries or any of the officers, directors, employees, agents, attorneys or investment bankers of any of them shall have any liability of any nature whatsoever under this Agreement, or in connection with the transactions

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contemplated by this Agreement, except that (i) Sections6.02(b), 8.02, 8.03, 9.03, 9.04, 9.05, 9.06, 9.08, 9.09, 9.13 and 9.14 shall survive any termination of this Agreement, and (ii) neither the Company nor Acquirer shall be relieved of or released from any liabilities or damages arising out of its knowing and intentional breach of any provision of this Agreement.

(i)If this Agreement is terminated by Acquirer pursuant to Section 8.01(g), then the Company shall promptly, but in no event later than two (2) days after the date of such termination, pay Acquirer all the documented out-of-pocket expenses incurred by Acquirer or any of its Affiliates in connection with this Agreement, including attorneys’ fees, and the transactions contemplated by this Agreement up to a maximum amount of $100,000, payable by wire transfer of same day funds; provided, however, that the Company shall not be required to make such payment if prohibited from doing so by its regulatory authorities.

(j)The Parties have determined that it would be too difficult to determine the damages that would be suffered by a Party in the event of a breach of this Agreement by the other. Accordingly, the Parties hereby agree that a Party who properly terminates this Agreement on the basis of a material breach of this Agreement shall be entitled to obtain payment in the sum of $250,000 in immediately available funds within 48 hours of delivery of notice of such termination in the manner provided in Section 9.04. The Parties further agree that receipt of such sum, plus any costs of collection (including reasonably attorneys’ fees) necessary to obtain payment of such sum, shall be the sole remedy of the non-breaching Party; provided, that nothing herein shall be deemed to prevent a non-breaching Party from seeking the remedy of specific performance as provided in Section 9.12.

Section 8.03Fees and Expenses. Costs and expenses of printing and mailing the Proxy Statement shall be the obligation of the Company. All filing and other fees paid to the SEC in connection with the Merger and all professional fees related to such registration shall be the obligation of the Acquirer. All other fees and expenses incurred in connection with the Merger, this Agreement and the transactions contemplated by this Agreement shall be paid by the Party incurring such fees or expenses, whether or not the Merger is consummated.

Section 8.04Extension; Waiver. At any time prior to the Effective Time, the Parties, by action taken or authorized by their respective boards of directors, may, to the extent legally allowed, (a) extend the time for the performance of any of the obligations or other acts of the other Party, (b) waive any inaccuracies in the representations and warranties of the other Party contained in this Agreement or (c) waive compliance by the other Party with any of the agreements or conditions contained in this Agreement. Any agreement on the part of a party to any such extension or waiver shall be valid only if set forth in a written instrument signed on behalf of such Party, but such extension or waiver or failure to insist on strict compliance with an obligation, covenant, agreement or condition shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure.

ARTICLE IX
GENERAL PROVISIONS

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Section 9.01Nonsurvival of Representations, Warranties and Agreements. None of the representations, warranties, covenants and agreements set forth in this Agreement or in any instrument delivered pursuant to this Agreement shall survive the Effective Time, except for Section 6.04 and for those other covenants and agreements contained in this Agreement that by their terms apply or are to be performed in whole or in part after the Effective Time.

Section 9.02Amendment. This Agreement may be amended at any time prior to the Effective Time by the Parties (by action taken or authorized by their respective boards of directors), whether before or after receipt of the Requisite Shareholder Approval; provided, however, that after such shareholder approval of this Agreement, no amendment shall be made to this Agreement that by Law requires further approval or authorization by the shareholders of the Company without such further approval or authorization. This Agreement may only be amended by an instrument in writing signed by or on behalf of each of the Parties

Section 9.03Waiver of Conditions. The conditions to each of the Parties’ obligations to consummate the Merger are for the sole benefit of such Party and may be waived by such Party in whole or in part to the extent permitted by applicable Laws.

Section 9.04Notices. All notices and other communications in connection with this Agreement shall be in writing and shall be deemed given if delivered personally, sent via facsimile or email (with confirmation), mailed by registered or certified mail (return receipt requested) or delivered by an express courier (with confirmation) to the Parties at the following addresses (or at such other address for a party as shall be specified by like notice):

If to Acquirer, to:

BBCN Bancorp, Inc.
3731 Wilshire Boulevard, Suite 1000
Los Angeles, CA 90010
Attention:    Legal Department        Juliet Stone or Lisa Pai
Facsimile:    (213) 235-3257 or (213) 406-8942
Email:        juliet.stone@bbcnbank.com        lisa.pai@bbcnbank.com

with copies to:

Mayer Brown LLP
350 S. Grand Avenue, 25th Floor
Los Angeles, CA 90071
Attention:    James R. Walther
Facsimile:    (213) 576-8153
Email:        jwalther@mayerbrown.com

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If to the Company, to:

Pacific International Bank
1155 North 130th Street
Seattle, WA
Attention:    Paul G. Sabado            President & CEO
Facsimile:    (206) 306-7532
Email:        paul.sabado@pibank.com

with a copy to:

Graham & Dunn PC
Pier 70
2801 Alaskan Way, Suite 300

Seattle, WA 98121
Attention:    Daniel S. Friedberg or Ryan Straus
Facsimile:    (206) 340-9599
Email:        dfriedberg@grahamdunn.com         rstraus@grahamdunn.com

Section 9.05Counterparts. This Agreement may be executed in two (2) or more counterparts (including by facsimile, pdf format or other electronic means), all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each of the Parties and delivered to the other Party, it being understood that each Party need not sign the same counterpart.

Section 9.06Entire Agreement. This Agreement (including any exhibits hereto, the documents and the instruments referred to in this Agreement) constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the Parties with respect to the subject matter of this Agreement, other than the Confidentiality Agreement.

Section 9.07Severability. If any provision of this Agreement or the application thereof to any person or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions, or the application of such provision to persons or circumstances other than those as to which it has been held invalid or unenforceable, will remain in full force and effect and will in no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination, the parties will negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to effect the original intent of the parties.

Section 9.08Governing Law; Jurisdiction. This Agreement shall be governed and construed in accordance with the laws of the State of Delaware applicable to contracts made and entirely to be performed within such state, without regard to any applicable conflicts of law principles that would require the application of the laws of any other jurisdiction. The Parties

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hereto agree that any suit, action or proceeding brought by either Party to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby, whether in tort or contract or at law or in equity, exclusively, in the United States District Court for the District of Delaware. Each of the Parties hereto irrevocably submits to the exclusive jurisdiction of such court in any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of, or in connection with, this Agreement or the transactions contemplated hereby and hereby irrevocably waives the benefit of jurisdiction derived from present or future domicile or otherwise in such action or proceeding. Each Party hereto irrevocably waives, to the fullest extent permitted by Law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in such court or that any such suit, action or proceeding brought in such court has been brought in an inconvenient forum or that such Party is not subject to personal jurisdiction in such court.

SECTION 9.09WAIVER OF JURY TRIAL. EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION, DIRECTLY OR INDIRECTLY, ARISING OUT OF, OR RELATING TO, THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH PARTY MAKES THIS WAIVER VOLUNTARILY AND (D) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.09.

Section 9.10Publicity. Neither the Company nor Acquirer shall, and neither the Company nor Acquirer shall permit any of its Subsidiaries or their respective Representatives to, issue or cause the publication of any press release or other public announcement with respect to, or otherwise make any public statement, or, except as otherwise specifically provided in this Agreement, any disclosure of nonpublic information to a third party, concerning, the transactions contemplated by this Agreement without the prior consent (which shall not be unreasonably withheld or delayed) of Acquirer, in the case of a proposed announcement, statement or disclosure by the Company or its Subsidiaries or their respective Representatives, or the Company, in the case of a proposed announcement, statement or disclosure by Acquirer or its Subsidiaries or their respective Representatives; provided, however, that either Party may, without the prior consent of the other Party (but after prior consultation with the other Party to the extent practicable under the circumstances) issue or cause the publication of any press release or other public announcement to the extent required by Law or by the rules and regulations of NASDAQ.

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Section 9.11Assignment; Third-Party Beneficiaries. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned by either of the Parties (whether by operation of law or otherwise) without the prior written consent of the other Party (which shall not be unreasonably withheld or delayed). Any attempted or purported assignment in contravention hereof shall be null and void. Subject to the preceding sentence, this Agreement shall be binding upon, inure to the benefit of and be enforceable by each of the Parties and their respective successors and assigns. Except for Section 6.04, which is intended to benefit each Indemnified Party and his or her heirs and representatives, this Agreement (including the documents and instruments referred to in this Agreement) is not intended to and does not confer upon any person other than the Parties hereto any rights or remedies under this Agreement including, without limitation, the right to rely upon the representations and warranties set forth herein.

Section 9.12Specific Performance. The Parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms. It is accordingly agreed that the Parties shall be entitled to seek specific performance of the terms hereof without being required to post any bond or other security, this being in addition to any other remedies to which they are entitled at law or equity, in tort or any other claims.

Section 9.13Definitions. The following terms, as used herein, have the following meanings:

“Acquirer Bank” shall mean BBCN Bank, a California state-chartered bank and a wholly owned subsidiary of Acquirer.

“Acquirer Material Adverse Effect” shall mean any fact, event, change, condition, occurrence, development, circumstance, effect or state of facts that:

(i)individually or in the aggregate, has been, or would reasonably be expected to be, materially adverse to the business, assets, results of operations or financial condition of Acquirer and its Subsidiaries, in each case taken as a whole; provided, however, that no fact, event, change, condition, occurrence, development, circumstance, effect or state of facts to the extent resulting from any of the following shall be considered in determining whether an Acquirer Material Adverse Effect has occurred or is in existence:

(1)changes, after the date hereof, in Laws, rules and regulations of general applicability, or of general applicability to banks or their holding companies, or interpretations thereof by Governmental Entities, including any change in GAAP or regulatory accounting requirements,

(2)changes in the economy or financial markets, generally, in the United States, or

50

(3)changes in economic, business or financial conditions generally affecting the banking industry,

provided, that the foregoing shall not apply to the extent such fact, event, change, condition, occurrence, development, circumstance, effect, action, omission or state of facts of the type referred to therein, has a disproportionate impact on the business, assets, results of operations or financial condition of Acquirer and its Subsidiaries compared to other comparable companies within the banking industry, or

(ii)prevents, materially delays or materially impairs the ability of Acquirer to perform its obligations under this Agreement or to consummate the Merger.

“Acquisition Proposal” means (i) any proposal or offer with respect to a merger, joint venture, partnership, consolidation, dissolution, liquidation, tender offer, recapitalization, reorganization, share exchange, business combination or similar transaction involving the Company or any of its Subsidiaries and (ii) any acquisition by any Person resulting in, or proposal or offer, which if consummated would result in, any Person becoming the beneficial owner of directly or indirectly, in one or a series of related transactions, 15% or more of the total voting power or of any class of equity securities of the Company or those of any of its Subsidiaries, or 15% or more of the consolidated total assets (including, without limitation, equity securities of its Subsidiaries) of the Company, in each case other than the transactions contemplated by this Agreement.

“Affiliate” shall mean, with respect to a Person, those other Persons that, directly or indirectly, control, are controlled by or are under common control with such Person; for purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” or “under common control with”), as applied to any person, means the possession, directly or indirectly, of (i) ownership, control or power to vote twenty-five percent (25%) or more of the outstanding shares of any class of voting securities of such person, (ii) control, in any manner, over the election of a majority of the directors, trustees or general partners (or individuals exercising similar functions) of such person or (iii) the power to exercise a controlling influence over the management or policies of such person as determined by the Federal Reserve; provided, however, neither the Company nor any of its Affiliates shall be deemed an Affiliate of Acquirer, or Acquirer’s ultimate parent company, or any of their respective Subsidiaries for purposes of this Agreement prior to the Effective Time and neither Acquirer nor any of its Affiliates shall be deemed an Affiliate of the Company or its Subsidiaries for purposes of this Agreement prior to the Effective Time.

“Business Day” shall mean any day other than a Saturday or Sunday or a day on which banks are required or authorized to close in the cities of Seattle, Washington or Los Angeles, California.

“Company Material Adverse Effect” shall mean any fact, event, change, condition, occurrence, development, circumstance, effect or state of facts that:

51

(i)individually or in the aggregate, has been, or would reasonably be expected to be, materially adverse to the business, assets, results of operations or financial condition of the Company and its Subsidiaries, in each case taken as a whole; provided, however, that no fact, event, change, condition, occurrence, development, circumstance, effect or state of facts to the extent resulting from any of the following shall be considered in determining whether a Company Material Adverse Effect has occurred or is in existence:

(4)changes, after the date hereof, in Laws, rules and regulations of general applicability, or of general applicability to banks or their holding companies, or interpretations thereof by Governmental Entities, including any change in GAAP or regulatory accounting requirements,

(5)changes in the economy or financial markets, generally, in the United States, or

(6)changes in economic, business or financial conditions generally affecting the banking industry,

provided, that the foregoing shall not apply to the extent such fact, event, change, condition, occurrence, development, circumstance, effect, action, omission or state of facts of the type referred to therein, has a disproportionate impact on the business, assets, results of operations or financial condition of the Company and its Subsidiaries compared to other comparable companies within the banking industry, or

(ii)prevents, materially delays or materially impairs the ability of the Company to perform its obligations under this Agreement or to consummate the Merger.

“Company Restricted Stock Plan” shall mean the Pacific International Bancorp, Inc. 2006 Restricted Stock Plan.

“Company Stock Option” shall mean options to purchase Company Common Stock granted pursuant to the Company Stock Plan.

“Company Stock Plan” shall mean the Amended Pacific International Bancorp, Inc. 2001 Stock Option Plan.

“Contract” shall mean any agreement, contract, instrument, guarantee, undertaking, lease, note, mortgage, indenture, license or other legally binding commitment or obligation, whether written or oral.

“Encumbrance” shall mean any mortgage, lien, pledge, charge, security interest, easement, covenant or other restriction or title matter or encumbrance of any kind in respect of such asset but specifically excludes (i) specified encumbrances described in Section 9.13 of the Company Disclosure Schedule; (ii) encumbrances for current Taxes or other governmental charges not yet due and payable, or the validity or amount of which is being contested in good

52

faith by appropriate proceedings and are reflected on or specifically reserved against or otherwise disclosed in the Financial Statements; (iii) mechanics’, carriers’, workmen’s, repairmen’s or other like encumbrances arising or incurred in the ordinary course of business consistent with past practice relating to obligations as to which there is no default on the part of the Company, or the validity or amount of which is being contested in good faith by appropriate proceedings and are reflected on or specifically reserved against or otherwise disclosed in the Financial Statements; and (iv) other encumbrances that do not, individually or in the aggregate, materially impair the continued use, operation, value or marketability of the specific parcel of Leased Real Property to which they relate or the conduct of the business of the Company and its Subsidiaries as presently conducted.

“Exchange Act” shall mean the Securities Exchange Act of 1934.

“Exchange Fund” shall mean the fund containing the portion of the Merger Consideration to be distributed to the Company’s shareholders pursuant to this Agreement.

“Excluded Shares” shall mean Shares owned by Acquirer, the Company or any direct or indirect wholly owned subsidiary of Acquirer or the Company, in each case not held (i) in trust accounts (including grantor or rabbi trust accounts), managed accounts and the like, or otherwise held in a fiduciary or agency capacity, that are beneficially owned by third parties or (ii) in respect of a debt previously contracted.

“Form S-4 Registration Statement” shall mean the Form S-4 Registration Statement under the Securities Act of 1933 to be prepared and filed with the SEC by Acquirer pursuant to Section 6.11.

“GAAP” shall mean U.S. generally accepted accounting principles.

“Governmental Entity” shall mean any federal, state, local, foreign or supranational court, tribunal, arbitral or administrative agency or commission or other governmental authority or instrumentality, and any stock exchange or industry self-regulatory organization.

“Knowledge” shall mean the actual knowledge of any of the senior management and directors of the Company or one of its Subsidiaries listed on Section 9.13 of the Company Disclosure Schedule, after appropriate inquiry.

“Laws” shall mean any federal, state, local or foreign law, common law, statute, code, ordinance, rule or regulation issued, promulgated, entered or authorized by any Governmental Entity.

“Merger Consideration” shall mean the amount of Acquirer Common Stock and cash consideration for fractional shares of Acquirer Common Stock (based upon the Per Share Merger Consideration formula), to which the holder of Company Common Stock is entitled to receive as a result of the Merger and the amount of cash the Treasury is to receive in respect of the Series A Preferred Stock as a result of the Merger.

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“NASDAQ” shall mean the NASDAQ Global Select Market or The Nasdaq Stock Market, Inc., as applicable.

“Order” shall mean any order, writ, injunction, decree, judgment, ruling, arbitration award or stipulation issued, promulgated or entered into by or with any Governmental Entity.

“Person” shall mean any individual, corporation (including not-for-profit), general or limited partnership, limited liability company, joint venture, estate, trust, association, organization, Governmental Entity or other entity of any kind or nature.

“Previously Disclosed” with regard to a Party means only that information set forth on such Party’s Disclosure Schedule; provided, however, that (i) disclosure in any section of such Disclosure Schedule shall apply to the indicated sections of this Agreement and shall also apply to such other sections of this Agreement and such Disclosure Schedule as to which it is reasonably apparent that such disclosure is relevant and (ii) with regard to the Acquirer, “Previously Disclosed” shall also include information publicly disclosed by Acquirer in any forms, statements, certifications, reports and documents filed with SEC pursuant to the Securities Act or the Exchange Act since December 31, 2010 and publicly available prior to the day preceding the date of this Agreement, but excluding any disclosures contained solely in such documents under the heading “Risk Factors” and any disclosure of risks included in any “forward-looking statements” disclaimer or other statements that are similarly non-specific and cautionary and are predictive or forward-looking in nature.

“Proxy Statement” shall mean proxy materials relating to the matters to be submitted to the Company’s shareholders at the Shareholders Meeting.

“SEC” shall mean the United States Securities and Exchange Commission.

“Securities Act” shall mean the Securities Act of 1933.

“Subsidiary” shall, when used with respect to either party, have the meaning ascribed to it in Section 2(d) of the BHCA.

“Superior Proposal” shall mean an unsolicited bona fide Acquisition Proposal that would result in any Person becoming the beneficial owner, directly or indirectly, more than 50% of the assets (on a consolidated basis) or 100% of the total voting power of the equity securities of the Company that the Company Board has determined in its good faith judgment is reasonably likely to be consummated in accordance with its terms, taking into account all legal, financial and regulatory aspects of the proposal and the Person making the proposal, and if consummated, would result in a transaction more favorable to the Company’s shareholders from a financial point of view than the transaction contemplated by this Agreement (after taking into account any revisions to the terms of the transaction contemplated by Section 6.05(d) of this Agreement pursuant to Section 6.05(d) and the time likely to be required to consummate such Acquisition Proposal).

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“Surviving Bank” shall mean the surviving banking corporation resulting from the Bank Merger, which shall be Acquirer Bank.

“Takeover Laws” shall mean any “fair price,” “moratorium,” “control share acquisition” or other anti-takeover statute or regulation.

“Tax Return” shall mean any return, report, information return or other document (including any related or supporting information) required to be filed with any taxing authority with respect to Taxes, including, without limitation, any claims for refunds of Taxes and any amendments or supplements to any of the foregoing.

“Taxes” shall mean all taxes, charges, levies, penalties or other assessments imposed by any United States federal, state, local or foreign taxing authority, including any income, excise, property, sales, transfer, franchise, payroll, withholding, social security, abandoned or unclaimed property or other taxes, together with any interest, penalties or additions to tax attributable thereto.

“Treasury Warrant” shall mean the warrant issued by the Company to the Treasury in connection with the Company’s sale of Series A Preferred Stock to the Treasury.

Section 9.14Other Definitional Provisions. Unless the express context otherwise requires:

(a)the words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement;

(b)the terms defined in the singular have a comparable meaning when used in the plural, and vice versa;

(c)the terms “Dollars” and “$” mean United States Dollars;

(d)references herein to a specific Section, Subsection or Exhibit shall refer, respectively, to Sections, Subsections or Exhibits of this Agreement; and

(e)wherever the word “include,” “includes” or “including” is used in this Agreement, it shall be deemed to be followed by the words “without limitation.”

(f)references herein to any statute, law, code, regulation or treaty shall be deemed to include any amendments thereto from time to time or any successor statute, law, code, regulation, treaty or protocol thereof and any the rules and regulations promulgated thereunder.

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective officers thereunto duly authorized as of the date first above written.

BBCN Bancorp, Inc.

By: Name:
Title:

Pacific International Bancorp, Inc.

By: Name:
Title:

S-1

EXHIBIT A
Form of Bank Merger Agreement

THIS AGREEMENT OF BANK MERGER, dated as of October [___], 2012 (this “Bank Merger Agreement”), is entered into between BBCN Bank (“Acquirer Bank”), a California state-chartered bank and a wholly owned subsidiary of BBCN Bancorp, Inc., a Delaware corporation (“BBCN Bancorp”), and Pacific International Bank (“Target Bank”), a Washington state-chartered commercial bank and a wholly owned subsidiary of Pacific International Bancorp, Inc., a Washington corporation (“Pacific International”). Acquirer Bank and Target Bank are sometimes referred to herein collectively as the “Parties” and individually as a “Party.”

WHEREAS, BBCN Bancorp and Pacific International entered into an Agreement and Plan of Merger, dated as of October [___], 2012 (the “Holding Company MergerAgreement”), providing, among other things, for the merger of Pacific International with and into BBCN Bancorp(the “Merger”); and

WHEREAS, in connection with the Merger, BBCN Bancorp and Pacific International desire to merge Target Bank with and into Acquirer Bank (the “Bank Merger”) concurrently with or as soon as reasonably practicable after the consummation of the Merger upon the terms and subject to the conditions set forth in this Bank Merger Agreement and the Holding Company Merger Agreement.

WHEREAS, the Parties intend that for federal income tax purposes the Bank Merger shall qualify as a “reorganization” within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended (the “Code”), and that this Agreement shall constitute a “plan of reorganization” for purposes of Sections 354 and 361 of the Code.

NOW, THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth in this Bank Merger Agreement and the Holding Company Merger Agreement, subject to the conditions set forth in this Bank Merger Agreement and the Holding Company Merger Agreement, and intending to be legally bound hereby, the Parties agree as follows:

1.    Effective Time. Upon the terms and subject to the conditions set forth in this Bank Merger Agreement and the Holding Company Merger Agreement, concurrently with or as soon as reasonably practicable after the consummation of the Merger, Acquirer Bank and Target Bank shall cause the Bank Merger to be consummated by (i) filing a copy of this Bank Merger Agreement, certified by the Secretary of State of the State of California pursuant to Section 1103 of the California General Corporation Law (the “CGCL”) and (ii) filing a copy of this Bank Merger Agreement, together with all other required documents and information, pursuant to Section 30.49.125 of the Revised Code of Washington (the “RCW”) with the Director of the State of Washington Department of Financial Institutions. The Bank Merger shall become effective upon the time and date of such filings (the “Effective Time”).

2.    The Merger. Acquirer Bank shall be the surviving bank in the Bank Merger (the “Surviving Bank”). At the Effective Time, Target Bank shall be merged with and into Acquirer Bank

A-1

and the separate existence of Target Bank shall cease. The Bank Merger shall be governed by, and shall have the effects set forth in, the CGCL and the RCW.

3.    Effects of the Merger.

(a)    At the Effective Time, the Surviving Bank shall succeed, without other transfer, to all the rights and properties, and shall be subject to all the debts and liabilities, of Target Bank, and the separate existence of Acquirer Bank, with all its purposes, objects, rights, powers, privileges, liabilities, obligations and franchises, shall continue unaffected and unimpaired by the Bank Merger.

(b)    The articles of incorporation (as amended effective as of the Effective Time to reflect the new name of the Surviving Bank) and the bylaws of Acquirer Bank, as in effect as of the Effective Time, shall be the articles of incorporation and bylaws of the Surviving Bank, until thereafter altered, amended or repealed in accordance with their terms and applicable law.

(c)    The shares of Target Bank common stock, no par value per share (“Target Bank Common Stock”) and the shares of Acquirer Bank common stock, no par value per share (“Acquirer Bank Common Stock”) shall be treated as follows at the Effective Time: (i) each share of Target Bank Common Stock issued and outstanding immediately prior to the Effective Time shall be automatically canceled without consideration and cease to be an issued and outstanding share of Target Bank Common Stock; and (ii) each share of Acquirer Bank Common Stock issued and outstanding immediately prior to the Effective Time shall remain issued and outstanding.

4.    Directors and Officers of the Surviving Bank. The directors and officers of Acquirer Bank shall be the directors and officers of the Surviving Bank without change in title or authority, but subject to the authority and power of the board of directors and shareholder of the Surviving Bank to add directors or officers to or otherwise modify the board of directors or number, titles and authority of the officers of the Surviving Bank.

5.    Procurement of Approvals. This Bank Merger Agreement shall be subject to the approval of BBCN Bancorp, as the sole shareholder of Acquirer Bank, and Pacific International, as the sole shareholder of Target Bank, at meetings to be called and held or by consent in lieu thereof in accordance with the applicable provisions of law and their respective organizational documents. Acquirer Bank and Target Bank shall use their commercially reasonable best efforts to proceed expeditiously and cooperate fully in the procurement of any other consents and approvals and in the taking of any other action, and the satisfaction of all other requirements prescribed by applicable law or otherwise necessary for the consummation of the Bank Merger on the terms provided herein, including, without limitation, the preparation and submission of such applications or other filings for approval of the Bank Merger as may be required by applicable laws and regulations.

6.    Conditions Precedent. The obligations of the Parties under this Bank Merger Agreement shall be subject to: (a) the approvals of this Bank Merger Agreement by BBCN Bancorp, as the sole shareholder of Acquirer Bank, and Pacific International, as the sole shareholder of Target Bank, at meetings duly called and held or by consent or consents in lieu thereof, in each case without any exercise of such dissenters’ rights as may be applicable; (b) receipt of approval of the Bank

A-2

Merger from all governmental and banking authorities whose approval is required by applicable laws and regulations; and (c) the consummation of the Merger pursuant to the Holding Company Merger Agreement at or before the Effective Time.

7.    General Provisions.

(a)    Termination and Agreement. The obligations of the Parties to effect the Bank Merger shall be subject to all the terms and conditions contained in the Holding Company Merger Agreement. This Bank Merger Agreement shall terminate, without any further action of any Party, notwithstanding shareholder approval, in the event that the Holding Company Merger Agreement shall be terminated as provided therein prior to the Effective Time.

(b)    Amendment. This Bank Merger Agreement may not be amended, modified or supplemented except by an instrument in writing signed on behalf of each of the Parties at any time prior to the Effective Time.

(c)    Successors and Assigns. This Bank Merger Agreement shall be binding upon and enforceable by the Parties and their respective successors and permitted assigns, but this Bank Merger Agreement may not be assigned by any Party, by operation of law or otherwise, without the prior written consent of the other Party.

(d)    Governing Law. This Bank Merger Agreement shall be governed by and construed in accordance with the laws of the State of California (without giving effect to choice of law principles thereof).

(e)    Counterparts. This Bank Merger Agreement may be executed in counterparts (which counterparts may be delivered by facsimile or other commonly used electronic means), each of which shall be considered one and the same agreement and shall become effective when both counterparts have been signed by each of the Parties and delivered to the other Party, it being understood that both Parties need not sign the same counterpart.

[Remainder of this page intentionally left blank]

A-3

IN WITNESS WHEREOF, the Parties have caused this Bank Merger Agreement to be executed by their respective officers thereunto duly authorized as of the date first above written.

BBCN Bank

By: Name:
Title:

Pacific International Bank

By: Name:
Title:

A-1

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECTUVIE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Alvin D. Kang, certify that:

1. I have reviewed this periodic report on Form 10-Q of BBCN Bancorp, Inc.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

a. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrants' board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: November 7, 2012 /s/ Alvin D. Kang

_______________________________

Alvin D. Kang

President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Philip E. Guldeman, certify that:

1. I have reviewed this periodic report on Form 10-Q of BBCN Bancorp, Inc.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

a. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrants' board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 7, 2012

/s/ Philip E. Guldeman

_______________________________

Philip E. Guldeman

Executive Vice President and

Chief Financial Officer                        

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECHTIVE OFFICER

PURSUANT TO SECTION 906 OF THE

PUBLIC COMPANY ACCOUNTING REFORM AND INVESTOR PROTECTION ACT OF 2002

In connection with the periodic report of BBCN Bancorp, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2012, as filed with the Securities and Exchange Commission (the “Report”), I, Alvin D. Kang, Chief Executive Officer of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that:

     (1)    the Report fully complies with the requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

     (2)    the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

This Certification has not been, and shall not be deemed, “filed” with the Securities and Exchange Commission.

Dated: November 7, 2012

/s/ Alvin D. Kang

__________________________

President and Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 906 OF THE

PUBLIC COMPANY ACCOUNTING REFORM AND INVESTOR PROTECTION ACT OF 2002

In connection with the periodic report of BBCN Bancorp, Inc (the “Company”) on Form 10-K for the period ended September 30, 2012, as filed with the Securities and Exchange Commission (the “Report”), I, Philip E. Guldeman, Chief Financial Officer of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that:

     (1)    the Report fully complies with the requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

     (2)    the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

This Certification has not been, and shall not be deemed, “filed” with the Securities and Exchange Commission.

Dated: November 7, 2012

/s/ Philip E. Guldeman

_______________________________

Executive Vice President and

Chief Financial Officer        

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Stock-Based Compensation - Estimated Annual Expense (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012
Estimated Annual Stock-Based Compensation Expense
Remainder of 2012	$ 751
2013	1,412
2014	659
2015	639
2016	101
2017	7
Total	$ 3,569

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Loans Receivable and Allowance for Loan Losses - Covered Loans (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Covered Nonperforming Assets
Covered loans on non-accrual status	$ 476	$ 0
Covered other real estate owned	1,821	3,575
Total covered nonperforming assets	2,297	3,575
Acquired covered loans	$ 78,141	$ 89,959

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Loans Receivable and Allowance for Loan Losses - Impaired Financing Receivables (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended			9 Months Ended			12 Months Ended
	Sep. 30, 2012		Sep. 30, 2011	Sep. 30, 2012		Sep. 30, 2011	Dec. 31, 2011
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	$ 73,274	[1]		$ 73,274	[1]
Recorded Investmetn, With No Related Allowance	9,043	[1]		9,043	[1]
Related Allowance, With Related Allowance	(8,704)			(8,704)			(18,035)
Impaired Financing Receivable, Recorded Investment, Net of Allowance	73,615			73,615			75,022
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	80,155			80,155
Unpaid Contractual Principal Balance, With No Related Allowance	22,741			22,741
Impaired Financing Receivable, Unpaid Principal Balance	102,896			102,896
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	72,870	[1]		73,454	[1]
Average Recorded Investment, With No Related Allowance	18,139	[1]		22,406	[1]
Average Recorded Investment, Total	91,009	[1]		95,860	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	756			2,229
Interest Income Recognized during Impairment, With No Related Allowance	33			100
Interest Income Recognized during Impairment, Total	789			2,329
Impaired Financing Receivable, Recorded Investment	82,317	[1]		82,317	[1]
WIthout charge-offs
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	72,827			72,827			67,262
Recorded Investmetn, With No Related Allowance	5,111			5,111			19,064
With charge-offs
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	448			448			341
Recorded Investmetn, With No Related Allowance	3,933			3,933			6,390
Real Estate | Real estate - Residential
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	0	[1]		0	[1]
Recorded Investmetn, With No Related Allowance	0	[1]		0	[1]
Related Allowance, With Related Allowance	0			0			0
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	0			0
Unpaid Contractual Principal Balance, With No Related Allowance	0			0
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	0	[1]		0	[1]
Average Recorded Investment, With No Related Allowance	0	[1]		0	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0			0
Interest Income Recognized during Impairment, With No Related Allowance	0			0
Real Estate | Real estate - Commercial
Impaired Loans, Recorded Investment
Related Allowance, With Related Allowance	(5,188)			(5,188)			(10,476)
Real Estate | Real estate - Commercial | Retail
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	4,453	[1]		4,453	[1]
Recorded Investmetn, With No Related Allowance	948	[1]		948	[1]
Related Allowance, With Related Allowance	(585)			(585)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	4,608			4,608
Unpaid Contractual Principal Balance, With No Related Allowance	3,847			3,847
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	3,872	[1]		3,021	[1]
Average Recorded Investment, With No Related Allowance	939	[1]		1,384	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	39			124
Interest Income Recognized during Impairment, With No Related Allowance	0			0
Real Estate | Real estate - Commercial | Hotel & Motel
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	15,580	[1]		15,580	[1]
Recorded Investmetn, With No Related Allowance	333	[1]		333	[1]
Related Allowance, With Related Allowance	(2,457)			(2,457)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	16,932			16,932
Unpaid Contractual Principal Balance, With No Related Allowance	2,338			2,338
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	19,349	[1]		19,673	[1]
Average Recorded Investment, With No Related Allowance	308	[1]		154	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	106			327
Interest Income Recognized during Impairment, With No Related Allowance	0			0
Real Estate | Real estate - Commercial | Gas Station & Car Wash
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	1,688	[1]		1,688	[1]
Recorded Investmetn, With No Related Allowance	2,649	[1]		2,649	[1]
Related Allowance, With Related Allowance	(539)			(539)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	1,726			1,726
Unpaid Contractual Principal Balance, With No Related Allowance	5,593			5,593
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	2,496	[1]		3,162	[1]
Average Recorded Investment, With No Related Allowance	2,158	[1]		1,382	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	23			69
Interest Income Recognized during Impairment, With No Related Allowance	0			0
Real Estate | Real estate - Commercial | Mixed Use
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	1,837	[1]		1,837	[1]
Recorded Investmetn, With No Related Allowance	0	[1]		0	[1]
Related Allowance, With Related Allowance	(260)			(260)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	1,914			1,914
Unpaid Contractual Principal Balance, With No Related Allowance	0			0
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	3,540	[1]		3,753	[1]
Average Recorded Investment, With No Related Allowance	0	[1]		0	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0			0
Interest Income Recognized during Impairment, With No Related Allowance	0			0
Real Estate | Real estate - Commercial | Industrial & Warehouse
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	2,248	[1]		2,248	[1]
Recorded Investmetn, With No Related Allowance	376	[1]		376	[1]
Related Allowance, With Related Allowance	(443)			(443)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	2,332			2,332
Unpaid Contractual Principal Balance, With No Related Allowance	2,814			2,814
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	1,845	[1]		3,297	[1]
Average Recorded Investment, With No Related Allowance	3,125	[1]		3,644	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	22			67
Interest Income Recognized during Impairment, With No Related Allowance	0			0
Real Estate | Real estate - Commercial | Other
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	15,249	[1]		15,249	[1]
Recorded Investmetn, With No Related Allowance	1,569	[1]		1,569	[1]
Related Allowance, With Related Allowance	(904)			(904)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	17,293			17,293
Unpaid Contractual Principal Balance, With No Related Allowance	2,528			2,528
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	13,596	[1]		13,675	[1]
Average Recorded Investment, With No Related Allowance	1,750	[1]		2,269	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	160			483
Interest Income Recognized during Impairment, With No Related Allowance	0			0
Real Estate | Real estate - Construction
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	0	[1]		0	[1]
Recorded Investmetn, With No Related Allowance	1,710	[1]		1,710	[1]
Related Allowance, With Related Allowance	0			0			(49)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	0			0
Unpaid Contractual Principal Balance, With No Related Allowance	1,710			1,710
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	0	[1]		32	[1]
Average Recorded Investment, With No Related Allowance	1,710	[1]		1,710	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0			0
Interest Income Recognized during Impairment, With No Related Allowance	28			85
Commercial Business
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	26,191	[1]		26,191	[1]
Recorded Investmetn, With No Related Allowance	1,384	[1]		1,384	[1]
Related Allowance, With Related Allowance	(3,434)			(3,434)			(7,168)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	28,873			28,873
Unpaid Contractual Principal Balance, With No Related Allowance	3,818			3,818
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	24,899	[1]		23,850	[1]
Average Recorded Investment, With No Related Allowance	5,818	[1]		9,442	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	341			1,048
Interest Income Recognized during Impairment, With No Related Allowance	5			15
Trade Finance
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	5,968	[1]		5,968	[1]
Recorded Investmetn, With No Related Allowance	0	[1]		0	[1]
Related Allowance, With Related Allowance	(82)			(82)			(342)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	6,417			6,417
Unpaid Contractual Principal Balance, With No Related Allowance	0			0
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	3,243	[1]		2,856	[1]
Average Recorded Investment, With No Related Allowance	2,226	[1]		2,295	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	63			108
Interest Income Recognized during Impairment, With No Related Allowance	0			0
Consumer and Other
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	60	[1]		60	[1]
Recorded Investmetn, With No Related Allowance	74	[1]		74	[1]
Related Allowance, With Related Allowance	0			0			0
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	60			60
Unpaid Contractual Principal Balance, With No Related Allowance	93			93
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	30	[1]		135	[1]
Average Recorded Investment, With No Related Allowance	105	[1]		126	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	2			3
Interest Income Recognized during Impairment, With No Related Allowance	0			0
Acquired
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	14,783	[1]		14,783	[1]		67,603
Recorded Investmetn, With No Related Allowance	1,492	[1]		1,492	[1]		25,454
Related Allowance, With Related Allowance	(1,584)			(1,584)			(18,035)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	18,093			18,093			69,767	[2]
Unpaid Contractual Principal Balance, With No Related Allowance	3,859			3,859			39,500	[2]
Impaired Financing Receivable, Unpaid Principal Balance	21,952			21,952			109,267	[2]
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	11,194	[1]	57,737	7,417	[1]	57,931	62,187	[1]
Average Recorded Investment, With No Related Allowance	3,643	[1]	37,362	3,048	[1]	47,804	41,012	[1]
Average Recorded Investment, Total	14,837	[1]	95,099	10,465	[1]	105,735	103,199	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	128		614	398		1,852	2,517
Interest Income Recognized during Impairment, With No Related Allowance	5		84	15		257	346
Interest Income Recognized during Impairment, Total	133		698	413		2,109	2,863
Impaired Financing Receivable, Recorded Investment	16,275	[1]		16,275	[1]		93,057
Acquired | Real Estate
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance			0			3,099
Average Recorded Investment, With No Related Allowance			3,421			3,673
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance			0			0
Interest Income Recognized during Impairment, With No Related Allowance			28			84
Acquired | Real Estate | Real estate - Residential
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	0	[1]		0	[1]		0
Recorded Investmetn, With No Related Allowance	0	[1]		0	[1]		0
Related Allowance, With Related Allowance	0			0			0
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	0			0			0	[2]
Unpaid Contractual Principal Balance, With No Related Allowance	0			0			0	[2]
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	0	[1]	0	0	[1]	0	0	[1]
Average Recorded Investment, With No Related Allowance	0	[1]	0	0	[1]	0	0	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0		0	0		0	0
Interest Income Recognized during Impairment, With No Related Allowance	0		0	0		0	0
Acquired | Real Estate | Real estate - Commercial | Retail
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	2,144	[1]		2,144	[1]		1,810
Recorded Investmetn, With No Related Allowance	4	[1]		4	[1]		2,067
Related Allowance, With Related Allowance	(148)			(148)			(668)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	2,186			2,186			2,686	[2]
Unpaid Contractual Principal Balance, With No Related Allowance	224			224			4,789	[2]
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	1,546	[1]	2,713	828	[1]	3,891	3,611	[1]
Average Recorded Investment, With No Related Allowance	2	[1]	3,838	1	[1]	5,742	4,871	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	26		8	86		25	34
Interest Income Recognized during Impairment, With No Related Allowance	0		0	0		0	0
Acquired | Real Estate | Real estate - Commercial | Hotel & Motel
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	6,051	[1]		6,051	[1]		17,441
Recorded Investmetn, With No Related Allowance	0	[1]		0	[1]		0
Related Allowance, With Related Allowance	(351)			(351)			(4,093)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	7,375			7,375			17,459	[2]
Unpaid Contractual Principal Balance, With No Related Allowance	0			0			0	[2]
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	6,082	[1]	17,448	4,595	[1]	13,866	14,581	[1]
Average Recorded Investment, With No Related Allowance	0	[1]	2,369	0	[1]	5,182	4,146	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0		246	0		764	1,013
Interest Income Recognized during Impairment, With No Related Allowance	0		0	0		0	0
Acquired | Real Estate | Real estate - Commercial | Gas Station & Car Wash
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	0	[1]		0	[1]		2,265
Recorded Investmetn, With No Related Allowance	272	[1]		272	[1]		287
Related Allowance, With Related Allowance	0			0			(550)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	0			0			2,669	[2]
Unpaid Contractual Principal Balance, With No Related Allowance	1,872			1,872			2,851	[2]
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	0	[1]	2,591	71	[1]	2,964	2,824	[1]
Average Recorded Investment, With No Related Allowance	237	[1]	2,307	162	[1]	3,204	2,621	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0		24	0		71	95
Interest Income Recognized during Impairment, With No Related Allowance	0		0	0		0	0
Acquired | Real Estate | Real estate - Commercial | Mixed Use
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	0	[1]		0	[1]		2,822
Recorded Investmetn, With No Related Allowance	0	[1]		0	[1]		0
Related Allowance, With Related Allowance	0			0			(128)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	0			0			2,840	[2]
Unpaid Contractual Principal Balance, With No Related Allowance	0			0			0	[2]
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	0	[1]	1,234	0	[1]	1,336	1,705	[1]
Average Recorded Investment, With No Related Allowance	0	[1]	1,861	0	[1]	2,606	2,013	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0		17	0		52	158
Interest Income Recognized during Impairment, With No Related Allowance	0		0	0		0	0
Acquired | Real Estate | Real estate - Commercial | Industrial & Warehouse
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	822	[1]		822	[1]		4,242
Recorded Investmetn, With No Related Allowance	0	[1]		0	[1]		2,662
Related Allowance, With Related Allowance	(57)			(57)			(407)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	889			889			4,246	[2]
Unpaid Contractual Principal Balance, With No Related Allowance	0			0			8,346	[2]
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	411	[1]	4,163	206	[1]	4,967	4,822	[1]
Average Recorded Investment, With No Related Allowance	1,839	[1]	2,571	1,709	[1]	2,313	2,383	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	9		77	27		231	310
Interest Income Recognized during Impairment, With No Related Allowance	0		0	0		0	0
Acquired | Real Estate | Real estate - Commercial | Other
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	3,484	[1]		3,484	[1]		14,982
Recorded Investmetn, With No Related Allowance	835	[1]		835	[1]		2,605
Related Allowance, With Related Allowance	(123)			(123)			(4,630)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	4,467			4,467			14,994	[2]
Unpaid Contractual Principal Balance, With No Related Allowance	1,248			1,248			4,252	[2]
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	1,742	[1]	7,400	880	[1]	4,000	6,300	[1]
Average Recorded Investment, With No Related Allowance	796	[1]	8,878	655	[1]	12,629	10,521	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	72		127	216		382	298
Interest Income Recognized during Impairment, With No Related Allowance	0		13	0		40	0
Acquired | Real Estate | Real estate - Construction
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	0	[1]		0	[1]		128
Recorded Investmetn, With No Related Allowance	0	[1]		0	[1]		1,710
Related Allowance, With Related Allowance	0			0			(49)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	0			0			128	[2]
Unpaid Contractual Principal Balance, With No Related Allowance	0			0			1,710	[2]
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	0	[1]		0	[1]		2,504	[1]
Average Recorded Investment, With No Related Allowance	0	[1]		0	[1]		3,280	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0			0			0
Interest Income Recognized during Impairment, With No Related Allowance	0			0			113
Acquired | Commercial Business
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	2,282	[1]		2,282	[1]		19,416
Recorded Investmetn, With No Related Allowance	381	[1]		381	[1]		15,506
Related Allowance, With Related Allowance	(905)			(905)			(7,168)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	3,176			3,176			20,248	[2]
Unpaid Contractual Principal Balance, With No Related Allowance	515			515			16,905	[2]
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	1,413	[1]	22,188	837	[1]	23,808	24,941	[1]
Average Recorded Investment, With No Related Allowance	769	[1]	10,887	521	[1]	11,480	10,274	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	21		115	69		327	538
Interest Income Recognized during Impairment, With No Related Allowance	5		43	15		133	203
Acquired | Trade Finance
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	0	[1]		0	[1]		4,497
Recorded Investmetn, With No Related Allowance	0	[1]		0	[1]		467
Related Allowance, With Related Allowance	0			0			(342)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	0			0			4,497	[2]
Unpaid Contractual Principal Balance, With No Related Allowance	0			0			467	[2]
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	0	[1]	0	0	[1]	0	899	[1]
Average Recorded Investment, With No Related Allowance	0	[1]	1,076	0	[1]	831	758	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0		0	0		0	71
Interest Income Recognized during Impairment, With No Related Allowance	0		0	0		0	30
Acquired | Consumer and Other
Impaired Loans, Recorded Investment
Recorded Investment, Without Related Allowance	0	[1]		0	[1]		0
Recorded Investmetn, With No Related Allowance	0	[1]		0	[1]		150
Related Allowance, With Related Allowance	0			0			0
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	0			0			0	[2]
Unpaid Contractual Principal Balance, With No Related Allowance	0			0			180	[2]
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	0	[1]	0	0	[1]	0	0	[1]
Average Recorded Investment, With No Related Allowance	0	[1]	154	0	[1]	144	145	[1]
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0		0	0		0	0
Interest Income Recognized during Impairment, With No Related Allowance	$ 0		$ 0	$ 0		$ 0	$ 0

[1] Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

[2] The table has been revised to present unpaid contractual principal balances, whereas the Company had previously disclosed unpaid contractual principal balances that were net of charge-offs, interest applied to principal and purchase discounts.

XML

Borrowings - Narrative (Details) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Percent of assets	25.00%
Maximum amount available	$ 1,300,000,000	$ 1,300,000,000
Percent outstanding advances	100.00%
Borrowings	460,815,000	344,402,000
Weighted average interest rate	1.33%	1.93%
Interest rate, range minimum	0.28%
Interest rate, range maximum	3.93%
Unused funds	836,700,000
Percent of qualifying assets	95.00%
Mortgage Loans on Real Estate
Debt Instrument [Line Items]
Collateral pledged	2,000,000,000	2,000,000,000
Securities Investment
Debt Instrument [Line Items]
Collateral pledged	0	3,000,000
Asset balance used to determine maximum borrowing capacity from federal reserve bank	600,000
Amount outstanding	0
Qualifying Loans
Debt Instrument [Line Items]
Asset balance used to determine maximum borrowing capacity from federal reserve bank	480,200,000
Putable
Debt Instrument [Line Items]
Borrowings	$ 80,000,000	$ 205,000,000

XML

Loans Receivable and Allowance for Loan Losses - Accretable Yield Movement Schedule on Acquired Credit Impaired Loans in Center Merger (Details) (Center Financial Corporation, USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Center Financial Corporation
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	$ 22,966	$ 0	$ 31,999	$ 0
Accretion	(3,415)	0	(10,866)	0
Changes in expected cash flows	516	0	(1,066)	0
Balance at end of period	$ 20,067	$ 0	$ 20,067	$ 0

XML

Stockholders’ Equity and Regulatory Matters (Tables)

9 Months Ended

Sep. 30, 2012

Stockholders’ Equity and Regulatory Matters [Abstract]

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]

The Company’s and the Bank’s actual capital amounts and ratios are presented in the table below:

	Actual				Required For Capital Adequacy Purposes				Required To Be Well Capitalized under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
As of September 30, 2012
Total capital (to risk-weighted assets):
Company	$	723,954	16.5	%	$	351,432	8.0	%	N/A		N/A
Bank	$	702,825	16.0	%	$	351,209	8.0	%	$	439,011	10.0	%
Tier I capital (to risk-weighted assets):
Company	$	668,710	15.2	%	$	175,716	4.0	%	N/A		N/A
Bank	$	647,616	14.8	%	$	175,604	4.0	%	$	263,407	6.0	%
Tier I capital (to average assets):
Company	$	668,710	13.2	%	$	203,354	4.0	%	N/A		N/A
Bank	$	647,616	12.7	%	$	203,307	4.0	%	$	254,134	5.0	%
	Actual				Required For Capital Adequacy Purposes				Required To Be Well Capitalized under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
As of December 31, 2011
Total capital (to risk-weighted assets):
Company	$	784,054	19.4	%	$	323,144	8.0	%	N/A		N/A
Bank	$	721,551	17.9	%	$	322,891	8.0	%	$	403,613	10.0	%
Tier I capital (to risk-weighted assets):
Company	$	733,319	18.2	%	$	161,572	4.0	%	N/A		N/A
Bank	$	670,855	16.6	%	$	161,445	4.0	%	$	242,168	6.0	%
Tier I capital (to average assets):
Company	$	733,319	19.8	%	$	148,044	4.0	%	N/A		N/A
Bank	$	670,855	18.1	%	$	148,038	4.0	%	$	185,048	5.0	%

XML

Subordinated Debentures - Summary of Trust Preferred Securities and Debentures (Details) (USD $)	Sep. 30, 2012		Dec. 31, 2011
Subordinated Borrowing [Line Items]
Subordinated Debentures Amount	$ 41,809,000		$ 52,102,000
Nara Capital Trust III
Subordinated Borrowing [Line Items]
Initial Rate	4.44%
Coupon Rate at September 30, 2012	3.54%
Nara Statutory Trust IV
Subordinated Borrowing [Line Items]
Initial Rate	4.02%
Coupon Rate at September 30, 2012	3.31%
Nara Statutory Trust V
Subordinated Borrowing [Line Items]
Initial Rate	4.12%
Coupon Rate at September 30, 2012	3.34%
Nara Statutory Trust VI
Subordinated Borrowing [Line Items]
Initial Rate	7.00%
Coupon Rate at September 30, 2012	2.04%
Center Capital Trust I
Subordinated Borrowing [Line Items]
Unamortized discount	5,600,000
Initial Rate	4.01%	[1]
Coupon Rate at September 30, 2012	3.31%	[1]
Effective percentage	6.03%
Trust Preferred Security Amount
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	46,000,000
Trust Preferred Security Amount | Nara Capital Trust III
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	5,000,000
Trust Preferred Security Amount | Nara Statutory Trust IV
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	5,000,000
Trust Preferred Security Amount | Nara Statutory Trust V
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	10,000,000
Trust Preferred Security Amount | Nara Statutory Trust VI
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	8,000,000
Trust Preferred Security Amount | Center Capital Trust I
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	18,000,000	[1]
Subordinated Debentures Amount
Subordinated Borrowing [Line Items]
Subordinated Debentures Amount	41,809,000
Subordinated Debentures Amount | Nara Capital Trust III
Subordinated Borrowing [Line Items]
Subordinated Debentures Amount	5,155,000
Subordinated Debentures Amount | Nara Statutory Trust IV
Subordinated Borrowing [Line Items]
Subordinated Debentures Amount	5,155,000
Subordinated Debentures Amount | Nara Statutory Trust V
Subordinated Borrowing [Line Items]
Subordinated Debentures Amount	10,310,000
Subordinated Debentures Amount | Nara Statutory Trust VI
Subordinated Borrowing [Line Items]
Subordinated Debentures Amount	8,248,000
Subordinated Debentures Amount | Center Capital Trust I
Subordinated Borrowing [Line Items]
Subordinated Debentures Amount	$ 12,941,000	[1]

[1] The Center Capital Trust I trust preferred security was assumed in the Merger. The remaining discount was $5.6 million at September 30, 2012 and the effective rate of the security, including the effect of the discount accretion, was 6.03% at September 30, 2012.

XML

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Stock Option Activity Under the Plan

The following is a summary of stock option activity under the 2007 and 2006 Plans for the nine months ended September 30,2012:

	Number of Shares		Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding - January 1, 2012	830,011		$	16.35
Granted	0		0
Exercised	(28,639	)	7.11
Forfeited	0		0
Outstanding - September 30, 2012	801,372		$	16.68	5.68	$	992,000
Options exercisable - September 30, 2012	798,484		$	16.68	5.67	$	992,000
Unvested options expected to vest after September 30, 2012	2,888		$	15.95	9.17	$	0

Summary of Restricted and Performance Unit Activity Under the Plan

The following is a summary of restricted and performance unit activity under the 2007 and 2006 Plans for the nine months ended September 30,2012:

	Number of Shares		Weighted- Average Grant Date Fair Value		Weighted- Average Remaining Contractual Life (Years)
Outstanding - January 1, 2012	52,480		$	7.42
Granted	502,710		10.45
Vested	(9,401	)	6.69
Forfeited	(4,599	)	7.46
Outstanding - September 30, 2012	541,190		$	10.31	9.31

Estimated Annual Stock-Based Compensation Expense

The estimated annual stock-based compensation expense as of September 30, 2012 for each of the succeeding years is indicated in the table below:

	Stock Based Compensation Expense
	(In thousands)
Remainder of 2012	$	751
For the year ended December 31:
2013	1,412
2014	659
2015	639
2016	101
2017	7
Total	$	3,569

XML

Loans Receivable and Allowance for Loan Losses - Financing Receivable Credit Quality Indicators (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 4,071,570	$ 3,741,570
Real Estate
Financing Receivable, Recorded Investment [Line Items]
Loans	2,940,866	2,678,679
Real Estate | Real estate - Residential
Financing Receivable, Recorded Investment [Line Items]
Loans	3,354	2,043
Real Estate | Real estate - Commercial
Financing Receivable, Recorded Investment [Line Items]
Loans	2,881,079	2,631,880
Real Estate | Real estate - Construction
Financing Receivable, Recorded Investment [Line Items]
Loans	56,433	44,756
Real Estate | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	2,187,612	1,797,763
Real Estate | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	753,254	880,916
Commercial business
Financing Receivable, Recorded Investment [Line Items]
Loans	898,977	849,576
Commercial business | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	714,861	564,117
Commercial business | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	184,116	285,459
Trade Finance
Financing Receivable, Recorded Investment [Line Items]
Loans	177,285	146,684
Trade Finance | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	167,875	105,621
Trade Finance | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	9,410	41,063
Consumer and Other
Financing Receivable, Recorded Investment [Line Items]
Loans	54,442	66,631
Consumer and Other | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	28,148	14,112
Consumer and Other | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	26,294	52,519
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	876	6,764
Doubtful [Member] | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	597	6,411
Doubtful [Member] | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	279	353
Doubtful [Member] | Real Estate | Legacy | Real estate - Residential
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Real Estate | Legacy | Real estate - Commercial | Retail
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Real Estate | Legacy | Real estate - Commercial | Hotel & Motel
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Real Estate | Legacy | Real estate - Commercial | Gas Station & Car Wash
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Real Estate | Legacy | Real estate - Commercial | Mixed Use
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Real Estate | Legacy | Real estate - Commercial | Industrial & Warehouse
Financing Receivable, Recorded Investment [Line Items]
Loans	382	404
Doubtful [Member] | Real Estate | Legacy | Real estate - Commercial | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Real Estate | Legacy | Real estate - Construction
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Real Estate | Acquired | Real estate - Residential
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Real Estate | Acquired | Real estate - Commercial | Retail
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Real Estate | Acquired | Real estate - Commercial | Hotel & Motel
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Real Estate | Acquired | Real estate - Commercial | Gas Station & Car Wash
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Real Estate | Acquired | Real estate - Commercial | Mixed Use
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Real Estate | Acquired | Real estate - Commercial | Industrial & Warehouse
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Real Estate | Acquired | Real estate - Commercial | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Real Estate | Acquired | Real estate - Construction
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Commercial business | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	215	6,007
Doubtful [Member] | Commercial business | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	188	353
Doubtful [Member] | Trade Finance | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Trade Finance | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Consumer and Other | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful [Member] | Consumer and Other | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	91	0
Non Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	283,013	302,380
Non Pass [Member] | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	125,160	139,825
Non Pass [Member] | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	157,853	162,555
Non Pass [Member] | Real Estate | Legacy | Real estate - Residential
Financing Receivable, Recorded Investment [Line Items]
Loans	29	36
Non Pass [Member] | Real Estate | Legacy | Real estate - Commercial | Retail
Financing Receivable, Recorded Investment [Line Items]
Loans	15,247	16,902
Non Pass [Member] | Real Estate | Legacy | Real estate - Commercial | Hotel & Motel
Financing Receivable, Recorded Investment [Line Items]
Loans	20,257	22,881
Non Pass [Member] | Real Estate | Legacy | Real estate - Commercial | Gas Station & Car Wash
Financing Receivable, Recorded Investment [Line Items]
Loans	11,057	6,043
Non Pass [Member] | Real Estate | Legacy | Real estate - Commercial | Mixed Use
Financing Receivable, Recorded Investment [Line Items]
Loans	5,254	5,300
Non Pass [Member] | Real Estate | Legacy | Real estate - Commercial | Industrial & Warehouse
Financing Receivable, Recorded Investment [Line Items]
Loans	7,361	11,623
Non Pass [Member] | Real Estate | Legacy | Real estate - Commercial | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	17,653	21,404
Non Pass [Member] | Real Estate | Legacy | Real estate - Construction
Financing Receivable, Recorded Investment [Line Items]
Loans	1,710	1,838
Non Pass [Member] | Real Estate | Acquired | Real estate - Residential
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Non Pass [Member] | Real Estate | Acquired | Real estate - Commercial | Retail
Financing Receivable, Recorded Investment [Line Items]
Loans	20,338	22,848
Non Pass [Member] | Real Estate | Acquired | Real estate - Commercial | Hotel & Motel
Financing Receivable, Recorded Investment [Line Items]
Loans	31,013	29,758
Non Pass [Member] | Real Estate | Acquired | Real estate - Commercial | Gas Station & Car Wash
Financing Receivable, Recorded Investment [Line Items]
Loans	12,195	11,400
Non Pass [Member] | Real Estate | Acquired | Real estate - Commercial | Mixed Use
Financing Receivable, Recorded Investment [Line Items]
Loans	6,337	6,323
Non Pass [Member] | Real Estate | Acquired | Real estate - Commercial | Industrial & Warehouse
Financing Receivable, Recorded Investment [Line Items]
Loans	7,479	6,409
Non Pass [Member] | Real Estate | Acquired | Real estate - Commercial | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	21,066	19,252
Non Pass [Member] | Real Estate | Acquired | Real estate - Construction
Financing Receivable, Recorded Investment [Line Items]
Loans	7,383	5,485
Non Pass [Member] | Commercial business | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	31,777	47,483
Non Pass [Member] | Commercial business | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	46,994	55,951
Non Pass [Member] | Trade Finance | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	13,861	5,236
Non Pass [Member] | Trade Finance | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	309	953
Non Pass [Member] | Consumer and Other | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	954	1,079
Non Pass [Member] | Consumer and Other | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	4,739	4,176
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	94,659	96,706
Special Mention [Member] | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	32,708	35,740
Special Mention [Member] | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	61,951	60,966
Special Mention [Member] | Real Estate | Legacy | Real estate - Residential
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Special Mention [Member] | Real Estate | Legacy | Real estate - Commercial | Retail
Financing Receivable, Recorded Investment [Line Items]
Loans	3,059	3,434
Special Mention [Member] | Real Estate | Legacy | Real estate - Commercial | Hotel & Motel
Financing Receivable, Recorded Investment [Line Items]
Loans	3,692	5,005
Special Mention [Member] | Real Estate | Legacy | Real estate - Commercial | Gas Station & Car Wash
Financing Receivable, Recorded Investment [Line Items]
Loans	1,658	3,491
Special Mention [Member] | Real Estate | Legacy | Real estate - Commercial | Mixed Use
Financing Receivable, Recorded Investment [Line Items]
Loans	1,774	2,281
Special Mention [Member] | Real Estate | Legacy | Real estate - Commercial | Industrial & Warehouse
Financing Receivable, Recorded Investment [Line Items]
Loans	4,036	3,992
Special Mention [Member] | Real Estate | Legacy | Real estate - Commercial | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	2,958	5,904
Special Mention [Member] | Real Estate | Legacy | Real estate - Construction
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Special Mention [Member] | Real Estate | Acquired | Real estate - Residential
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Special Mention [Member] | Real Estate | Acquired | Real estate - Commercial | Retail
Financing Receivable, Recorded Investment [Line Items]
Loans	13,042	11,562
Special Mention [Member] | Real Estate | Acquired | Real estate - Commercial | Hotel & Motel
Financing Receivable, Recorded Investment [Line Items]
Loans	17,726	13,081
Special Mention [Member] | Real Estate | Acquired | Real estate - Commercial | Gas Station & Car Wash
Financing Receivable, Recorded Investment [Line Items]
Loans	6,301	5,645
Special Mention [Member] | Real Estate | Acquired | Real estate - Commercial | Mixed Use
Financing Receivable, Recorded Investment [Line Items]
Loans	2,320	3,500
Special Mention [Member] | Real Estate | Acquired | Real estate - Commercial | Industrial & Warehouse
Financing Receivable, Recorded Investment [Line Items]
Loans	1,370	2,659
Special Mention [Member] | Real Estate | Acquired | Real estate - Commercial | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	4,739	6,673
Special Mention [Member] | Real Estate | Acquired | Real estate - Construction
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Special Mention [Member] | Commercial business | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	7,638	11,360
Special Mention [Member] | Commercial business | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	15,728	16,062
Special Mention [Member] | Trade Finance | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	7,893	273
Special Mention [Member] | Trade Finance | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	303	126
Special Mention [Member] | Consumer and Other | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Special Mention [Member] | Consumer and Other | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	422	1,658
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	187,478	198,910
Substandard [Member] | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	91,855	97,674
Substandard [Member] | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	95,623	101,236
Substandard [Member] | Real Estate | Legacy | Real estate - Residential
Financing Receivable, Recorded Investment [Line Items]
Loans	29	36
Substandard [Member] | Real Estate | Legacy | Real estate - Commercial | Retail
Financing Receivable, Recorded Investment [Line Items]
Loans	12,188	13,468
Substandard [Member] | Real Estate | Legacy | Real estate - Commercial | Hotel & Motel
Financing Receivable, Recorded Investment [Line Items]
Loans	16,565	17,876
Substandard [Member] | Real Estate | Legacy | Real estate - Commercial | Gas Station & Car Wash
Financing Receivable, Recorded Investment [Line Items]
Loans	9,399	2,552
Substandard [Member] | Real Estate | Legacy | Real estate - Commercial | Mixed Use
Financing Receivable, Recorded Investment [Line Items]
Loans	3,480	3,019
Substandard [Member] | Real Estate | Legacy | Real estate - Commercial | Industrial & Warehouse
Financing Receivable, Recorded Investment [Line Items]
Loans	2,943	7,227
Substandard [Member] | Real Estate | Legacy | Real estate - Commercial | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	14,695	15,500
Substandard [Member] | Real Estate | Legacy | Real estate - Construction
Financing Receivable, Recorded Investment [Line Items]
Loans	1,710	1,838
Substandard [Member] | Real Estate | Acquired | Real estate - Residential
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Substandard [Member] | Real Estate | Acquired | Real estate - Commercial | Retail
Financing Receivable, Recorded Investment [Line Items]
Loans	7,296	11,286
Substandard [Member] | Real Estate | Acquired | Real estate - Commercial | Hotel & Motel
Financing Receivable, Recorded Investment [Line Items]
Loans	13,287	16,677
Substandard [Member] | Real Estate | Acquired | Real estate - Commercial | Gas Station & Car Wash
Financing Receivable, Recorded Investment [Line Items]
Loans	5,894	5,755
Substandard [Member] | Real Estate | Acquired | Real estate - Commercial | Mixed Use
Financing Receivable, Recorded Investment [Line Items]
Loans	4,017	2,823
Substandard [Member] | Real Estate | Acquired | Real estate - Commercial | Industrial & Warehouse
Financing Receivable, Recorded Investment [Line Items]
Loans	6,109	3,750
Substandard [Member] | Real Estate | Acquired | Real estate - Commercial | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	16,327	12,579
Substandard [Member] | Real Estate | Acquired | Real estate - Construction
Financing Receivable, Recorded Investment [Line Items]
Loans	7,383	5,485
Substandard [Member] | Commercial business | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	23,924	30,116
Substandard [Member] | Commercial business | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	31,078	39,536
Substandard [Member] | Trade Finance | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	5,968	4,963
Substandard [Member] | Trade Finance | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	6	827
Substandard [Member] | Consumer and Other | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	954	1,079
Substandard [Member] | Consumer and Other | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 4,226	$ 2,518

XML

Securities Available for Sale - Proceeds, Gains and Losses (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Available-for-sale Securities [Abstract]
Proceeds	$ 26,563	$ 0	$ 28,446	$ 0
Gross gains	132	0	948	0
Gross losses	$ 0	$ 0	$ 0	$ 0

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Stock-Based Compensation - Stock Option Activity (Details) (Stock options, USD $)	9 Months Ended
	Sep. 30, 2012
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding - beginning of period (in shares)	830,011
Granted (in shares)	0
Exercised (in shares)	(28,639)
Forfeitured (in shares)	0
Outstanding - end of period (in shares)	801,372
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding - beginning of period, Weighted-Average Exercise Price Per Share	$ 16.35
Granted, Weighted-Average Exercise Price Per Share	$ 0
Exercised, Weighted-Average Exercise Price Per Share	$ 7.11
Forfeited, Weighted-Average Exercise Price Per Share	$ 0
Outstanding - end of period, Weighted-Average Exercise Price Per Share	$ 16.68
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options exercisable - end of period (in shares)	798,484
Unvested options expected to vest after September 30, 2012 (in shares)	2,888
Options exercisable, Weighted-Average Exercise Price Per Share	$ 16.68
Unvested options expected to vest after September 30, 2012, Weighted-Average Exercise Price Per Share	$ 15.95
Outstanding, Weighted-Average Remaining Contractual Life (Years)	5 years 8 months 6 days
Options exercisable, Weighted-Average Remaining Contractual Life (Years)	5 years 8 months 3 days
Unvested options expected to vest after September 30, 2012, Weighted-Average Remaining Contractual Life (Years)	9 years 2 months 1 day
Outstanding, Aggregate Intrinsic Value	$ 992,000
Options exercisable, Aggregate Intrinsic Value	992,000
Unvested options expected to vest after September 30, 2012, Aggregate Intrinsic Value	$ 0

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Loans Receivable and Allowance for Loan Losses - Allowance for Loans, by Portfolio Segment and Impairment Method (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012		Jun. 30, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Dec. 31, 2010
Financing Receivable, Impaired [Line Items]
Most recent quarters	12
Adjustment of the loss migration ratio or individual specific reserve allocations, in basis points	0.50%
Impaired Financing Receivable Unpaid Principal Balance [Roll Forward]
Impaired Financing Receivable, Recorded Investment	$ 82,317	[1]
Impaired Financing Receivable, Recorded Investment	82,317	[1]
Loans by Portfolio Segment and Impairment Method [Abstract]
Impaired Financing Receivable, Gross Carrying Value	82,317			93,057
Specific allowance	8,704			18,035
Loss coverage ratio	10.60%			19.40%
Non-impaired loans	3,989,253			3,648,513
General allowance	57,248			43,917
Loss coverage ratio	1.40%			1.20%
Total loans outstanding	4,071,570			3,741,570
Allowance for loan losses - Total	65,952		65,505	61,952
Loss coverage ratio	1.60%			1.70%
Real Estate
Loans by Portfolio Segment and Impairment Method [Abstract]
Total loans outstanding	2,940,866			2,678,679
Real Estate | Real estate - Residential
Loans by Portfolio Segment and Impairment Method [Abstract]
Impaired Financing Receivable, Gross Carrying Value	0			0
Specific allowance	0			0
Loss coverage ratio	0.00%			0.00%
Non-impaired loans	3,354			2,043
General allowance	32			9
Loss coverage ratio	1.00%			0.40%
Total loans outstanding	3,354			2,043
Allowance for loan losses - Total	32			9
Loss coverage ratio	1.00%			0.40%
Real Estate | Real estate - Commercial
Loans by Portfolio Segment and Impairment Method [Abstract]
Impaired Financing Receivable, Gross Carrying Value	46,930			51,183
Specific allowance	5,188			10,476
Loss coverage ratio	11.10%			20.50%
Non-impaired loans	2,834,149			2,580,697
General allowance	38,640			27,831
Loss coverage ratio	1.40%			1.10%
Total loans outstanding	2,881,079			2,631,880
Allowance for loan losses - Total	43,828			38,307
Loss coverage ratio	1.50%			1.50%
Real Estate | Real estate - Construction
Loans by Portfolio Segment and Impairment Method [Abstract]
Impaired Financing Receivable, Gross Carrying Value	1,710			1,838
Specific allowance	0			49
Loss coverage ratio	0.00%			2.70%
Non-impaired loans	54,723			42,918
General allowance	808			675
Loss coverage ratio	1.50%			1.60%
Total loans outstanding	56,433			44,756
Allowance for loan losses - Total	808			724
Loss coverage ratio	1.40%			1.60%
Commercial business
Loans by Portfolio Segment and Impairment Method [Abstract]
Impaired Financing Receivable, Gross Carrying Value	27,575			34,922
Specific allowance	3,434			7,168
Loss coverage ratio	12.50%			20.50%
Non-impaired loans	871,402			814,654
General allowance	14,213			13,513
Loss coverage ratio	1.60%			1.70%
Total loans outstanding	898,977			849,576
Allowance for loan losses - Total	17,647			20,681
Loss coverage ratio	2.00%			2.40%
Trade finance
Loans by Portfolio Segment and Impairment Method [Abstract]
Impaired Financing Receivable, Gross Carrying Value	5,968			4,964
Specific allowance	82			342
Loss coverage ratio	1.40%			6.90%
Non-impaired loans	171,317			141,720
General allowance	2,770			1,444
Loss coverage ratio	1.60%			1.00%
Total loans outstanding	177,285			146,684
Allowance for loan losses - Total	2,852			1,786
Loss coverage ratio	1.60%			1.20%
Consumer and Other
Loans by Portfolio Segment and Impairment Method [Abstract]
Impaired Financing Receivable, Gross Carrying Value	134			150
Specific allowance	0			0
Loss coverage ratio	0.00%			0.00%
Non-impaired loans	54,308			66,481
General allowance	785			445
Loss coverage ratio	1.40%			0.70%
Total loans outstanding	54,442			66,631
Allowance for loan losses - Total	785			445
Loss coverage ratio	1.40%			0.70%
Allowance Quantitative Allocation [Member]
Loans by Portfolio Segment and Impairment Method [Abstract]
General allowance	20,700			20,400
Allowance Qualitative Allocation [Member]
Loans by Portfolio Segment and Impairment Method [Abstract]
General allowance	34,100			23,500
Legacy
Loans by Portfolio Segment and Impairment Method [Abstract]
Allowance for loan losses - Total					60,009	59,696	62,320
Legacy | Real Estate
Loans by Portfolio Segment and Impairment Method [Abstract]
Total loans outstanding	2,187,612			1,797,763
Allowance for loan losses - Total	41,877		37,237	39,040	36,731	39,063	36,563
Legacy | Commercial business
Loans by Portfolio Segment and Impairment Method [Abstract]
Total loans outstanding	714,861			564,117
Allowance for loan losses - Total	16,569		20,880	20,681	20,907	20,058	24,930
Legacy | Trade finance
Loans by Portfolio Segment and Impairment Method [Abstract]
Total loans outstanding	167,875			105,621
Allowance for loan losses - Total	2,669		3,164	1,786	1,790	188	192
Legacy | Consumer and Other
Loans by Portfolio Segment and Impairment Method [Abstract]
Total loans outstanding	28,148			14,112
Allowance for loan losses - Total	719		1,115	445	581	387	635
Legacy | Allowance Quantitative Allocation [Member]
Loans by Portfolio Segment and Impairment Method [Abstract]
General allowance	20,300
Acquired
Impaired Financing Receivable Unpaid Principal Balance [Roll Forward]
Impaired Financing Receivable, Recorded Investment	16,275	[1]		93,057
Impaired Financing Receivable, Recorded Investment	16,275	[1]		93,057
Loans by Portfolio Segment and Impairment Method [Abstract]
Specific allowance	1,584			18,035
Acquired | Real Estate
Loans by Portfolio Segment and Impairment Method [Abstract]
Total loans outstanding	753,254			880,916
Allowance for loan losses - Total	2,791		2,283	0
Acquired | Real Estate | Real estate - Residential
Loans by Portfolio Segment and Impairment Method [Abstract]
Specific allowance	0			0
Acquired | Real Estate | Real estate - Construction
Loans by Portfolio Segment and Impairment Method [Abstract]
Specific allowance	0			49
Acquired | Commercial business
Loans by Portfolio Segment and Impairment Method [Abstract]
Specific allowance	905			7,168
Total loans outstanding	184,116			285,459
Allowance for loan losses - Total	1,078		397	0
Acquired | Trade finance
Loans by Portfolio Segment and Impairment Method [Abstract]
Specific allowance	0			342
Total loans outstanding	9,410			41,063
Allowance for loan losses - Total	183		340	0
Acquired | Consumer and Other
Loans by Portfolio Segment and Impairment Method [Abstract]
Specific allowance	0			0
Total loans outstanding	26,294			52,519
Allowance for loan losses - Total	66		89	0
Acquired | Allowance Quantitative Allocation [Member]
Loans by Portfolio Segment and Impairment Method [Abstract]
General allowance	$ 400

[1] Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

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Fair Value Measurements - Assets and Liabilities Measured at Fair Value, Recurring (Details) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2012		Sep. 30, 2012		Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net fair value adjustments for interest rate caps			$ 9,000		$ 157,000
Assets:
Securities available for sale	687,059,000		687,059,000		740,920,000
Transfers between levels 1, 2 and 3	0
U.S. Treasury
Assets:
Securities available for sale	0		0		300,000
GSE collateralized mortgage obligations
Assets:
Securities available for sale	235,669,000	[1]	235,669,000	[1]	227,836,000	[1]
GSE mortgage-backed securities
Assets:
Securities available for sale	427,589,000	[1]	427,589,000	[1]	487,754,000	[1]
Trust preferred security
Assets:
Securities available for sale	3,537,000		3,537,000		4,348,000
Municipal bonds
Assets:
Securities available for sale	5,139,000		5,139,000		5,764,000
Mutual funds
Assets:
Securities available for sale	15,125,000		15,125,000		14,918,000
Recurring basis | Estimate of Fair Value
Assets:
Derivatives-Interest rate caps					9,000
Recurring basis | Estimate of Fair Value | U.S. Treasury
Assets:
Securities available for sale					300,000
Recurring basis | Estimate of Fair Value | GSE collateralized mortgage obligations
Assets:
Securities available for sale	235,669,000		235,669,000		227,836,000
Recurring basis | Estimate of Fair Value | GSE mortgage-backed securities
Assets:
Securities available for sale	427,589,000		427,589,000		487,754,000
Recurring basis | Estimate of Fair Value | Trust preferred security
Assets:
Securities available for sale	3,537,000		3,537,000		4,348,000
Recurring basis | Estimate of Fair Value | Municipal bonds
Assets:
Securities available for sale	5,139,000		5,139,000		5,764,000
Recurring basis | Estimate of Fair Value | Mutual funds
Assets:
Securities available for sale	15,125,000		15,125,000		14,918,000
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Derivatives-Interest rate caps					0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury
Assets:
Securities available for sale					0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | GSE collateralized mortgage obligations
Assets:
Securities available for sale	0		0		0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | GSE mortgage-backed securities
Assets:
Securities available for sale	0		0		0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Trust preferred security
Assets:
Securities available for sale	0		0		0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal bonds
Assets:
Securities available for sale	0		0		0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds
Assets:
Securities available for sale	15,125,000		15,125,000		14,918,000
Recurring basis | Significant Other Observable Inputs (Level 2)
Assets:
Derivatives-Interest rate caps					9,000
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Treasury
Assets:
Securities available for sale					300,000
Recurring basis | Significant Other Observable Inputs (Level 2) | GSE collateralized mortgage obligations
Assets:
Securities available for sale	235,669,000		235,669,000		227,836,000
Recurring basis | Significant Other Observable Inputs (Level 2) | GSE mortgage-backed securities
Assets:
Securities available for sale	427,589,000		427,589,000		487,754,000
Recurring basis | Significant Other Observable Inputs (Level 2) | Trust preferred security
Assets:
Securities available for sale	3,537,000		3,537,000		4,348,000
Recurring basis | Significant Other Observable Inputs (Level 2) | Municipal bonds
Assets:
Securities available for sale	5,139,000		5,139,000		5,764,000
Recurring basis | Significant Other Observable Inputs (Level 2) | Mutual funds
Assets:
Securities available for sale	0		0		0
Recurring basis | Significant Unobservable Inputs (Level 3)
Assets:
Derivatives-Interest rate caps					0
Recurring basis | Significant Unobservable Inputs (Level 3) | U.S. Treasury
Assets:
Securities available for sale					0
Recurring basis | Significant Unobservable Inputs (Level 3) | GSE collateralized mortgage obligations
Assets:
Securities available for sale	0		0		0
Recurring basis | Significant Unobservable Inputs (Level 3) | GSE mortgage-backed securities
Assets:
Securities available for sale	0		0		0
Recurring basis | Significant Unobservable Inputs (Level 3) | Trust preferred security
Assets:
Securities available for sale	0		0		0
Recurring basis | Significant Unobservable Inputs (Level 3) | Municipal bonds
Assets:
Securities available for sale	0		0		0
Recurring basis | Significant Unobservable Inputs (Level 3) | Mutual funds
Assets:
Securities available for sale	$ 0		$ 0		$ 0

[1] Government Sponsored Enterprises (GSE) investments were issued by GNMA, FNMA and FHLMC and are all residential mortgage-backed investments

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Loans Receivable and Allowance for Loan Losses - Allowance for Credit Losses on Financing Receivables (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	$ 65,505		$ 61,952
Provision (credit) for loan losses	6,900		16,682
Loans charged off	(7,769)		(16,760)
Recoveries of charged offs	1,316		4,078
Balance, end of period	65,952		65,952
Allowance for loan losses:
Allowance for loan losses - Individually evaluated for impairment	8,704		8,704		18,035
Allowance for loan losses - Collectively evaluated for impairment	55,136		55,136		43,917
Allowance for loan losses - Loans acquired with credit deterioration	2,112		2,112		0
Allowance for loan losses - Total	65,952		65,952
Loans outstsanding:
Loans outstanding - Individually evaluated for impairment	82,319		82,319		93,057
Loans outstanding - Collectively evaluated for impairment	3,833,540		3,833,540		3,481,446
Loans outstanding - Loans acquired with credit deterioration	155,711		155,711		167,067
Total loans outstanding	4,071,570		4,071,570		3,741,570
Loans and Leases Receivable, Other Information
Commitment to lend	802		802		686
Provision for loan losses	0	0	116	0
Legacy
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period		59,696		62,320
Provision (credit) for loan losses		3,483		18,793
Loans charged off		(3,970)		(24,471)
Recoveries of charged offs		800		3,367
Balance, end of period		60,009		60,009
Allowance for loan losses:
Allowance for loan losses - Total		60,009		60,009
Real Estate
Loans outstsanding:
Total loans outstanding	2,940,866		2,940,866		2,678,679
Real Estate | Legacy
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	37,237	39,063	39,040	36,563
Provision (credit) for loan losses	5,499	(429)	6,831	17,161
Loans charged off	(1,832)	(2,358)	(6,095)	(18,193)
Recoveries of charged offs	973	455	2,101	1,200
Balance, end of period	41,877	36,731	41,877	36,731
Allowance for loan losses:
Allowance for loan losses - Individually evaluated for impairment	4,510		4,510		10,525
Allowance for loan losses - Collectively evaluated for impairment	37,367		37,367		28,515
Allowance for loan losses - Loans acquired with credit deterioration	0		0		0
Allowance for loan losses - Total	41,877	36,731	41,877	36,731
Loans outstsanding:
Loans outstanding - Individually evaluated for impairment	35,031		35,031		53,023
Loans outstanding - Collectively evaluated for impairment	2,152,581		2,152,581		1,744,740
Loans outstanding - Loans acquired with credit deterioration	0		0		0
Total loans outstanding	2,187,612		2,187,612		1,797,763
Real Estate | Acquired
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	2,283		0
Provision (credit) for loan losses	750		2,899
Loans charged off	(242)		(411)
Recoveries of charged offs	0		303
Balance, end of period	2,791		2,791
Allowance for loan losses:
Allowance for loan losses - Individually evaluated for impairment	678		678		0
Allowance for loan losses - Collectively evaluated for impairment	1		1		0
Allowance for loan losses - Loans acquired with credit deterioration	2,112		2,112		0
Allowance for loan losses - Total	2,791		2,791
Loans outstsanding:
Loans outstanding - Individually evaluated for impairment	13,611		13,611		0
Loans outstanding - Collectively evaluated for impairment	635,692		635,692		780,152
Loans outstanding - Loans acquired with credit deterioration	103,951		103,951		100,764
Total loans outstanding	753,254		753,254		880,916
Commercial Business
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period					20,681
Balance, end of period	17,647		17,647		20,681
Allowance for loan losses:
Allowance for loan losses - Total	17,647		17,647		20,681
Loans outstsanding:
Total loans outstanding	898,977		898,977		849,576
Commercial Business | Legacy
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	20,880	20,058	20,681	24,930
Provision (credit) for loan losses	988	2,007	3,203	62
Loans charged off	(5,574)	(1,479)	(8,470)	(6,022)
Recoveries of charged offs	275	321	1,155	1,937
Balance, end of period	16,569	20,907	16,569	20,907
Allowance for loan losses:
Allowance for loan losses - Individually evaluated for impairment	2,529		2,529		7,168
Allowance for loan losses - Collectively evaluated for impairment	14,040		14,040		13,513
Allowance for loan losses - Loans acquired with credit deterioration	0		0		0
Allowance for loan losses - Total	16,569	20,907	16,569	20,907
Loans outstsanding:
Loans outstanding - Individually evaluated for impairment	24,912		24,912		34,922
Loans outstanding - Collectively evaluated for impairment	689,949		689,949		529,195
Loans outstanding - Loans acquired with credit deterioration	0		0		0
Total loans outstanding	714,861		714,861		564,117
Commercial Business | Acquired
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	397		0
Provision (credit) for loan losses	784		1,701
Loans charged off	(118)		(755)
Recoveries of charged offs	15		132
Balance, end of period	1,078		1,078
Allowance for loan losses:
Allowance for loan losses - Individually evaluated for impairment	905		905		0
Allowance for loan losses - Collectively evaluated for impairment	173		173		0
Allowance for loan losses - Loans acquired with credit deterioration	0		0		0
Allowance for loan losses - Total	1,078		1,078
Loans outstsanding:
Loans outstanding - Individually evaluated for impairment	2,663		2,663		0
Loans outstanding - Collectively evaluated for impairment	133,098		133,098		223,928
Loans outstanding - Loans acquired with credit deterioration	48,355		48,355		61,531
Total loans outstanding	184,116		184,116		285,459
Trade Finance
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period					1,786
Balance, end of period	2,852		2,852		1,786
Allowance for loan losses:
Allowance for loan losses - Total	2,852		2,852		1,786
Loans outstsanding:
Total loans outstanding	177,285		177,285		146,684
Trade Finance | Legacy
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	3,164	188	1,786	192
Provision (credit) for loan losses	(495)	1,602	823	1,598
Loans charged off	0	0	0	0
Recoveries of charged offs	0	0	60	0
Balance, end of period	2,669	1,790	2,669	1,790
Allowance for loan losses:
Allowance for loan losses - Individually evaluated for impairment	82		82		342
Allowance for loan losses - Collectively evaluated for impairment	2,587		2,587		1,444
Allowance for loan losses - Loans acquired with credit deterioration	0		0		0
Allowance for loan losses - Total	2,669	1,790	2,669	1,790
Loans outstsanding:
Loans outstanding - Individually evaluated for impairment	5,968		5,968		4,963
Loans outstanding - Collectively evaluated for impairment	161,907		161,907		100,658
Loans outstanding - Loans acquired with credit deterioration	0		0		0
Total loans outstanding	167,875		167,875		105,621
Trade Finance | Acquired
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	340		0
Provision (credit) for loan losses	(157)		483
Loans charged off	0		(300)
Recoveries of charged offs	0		0
Balance, end of period	183		183
Allowance for loan losses:
Allowance for loan losses - Individually evaluated for impairment	0		0		0
Allowance for loan losses - Collectively evaluated for impairment	183		183		0
Allowance for loan losses - Loans acquired with credit deterioration	0		0		0
Allowance for loan losses - Total	183		183
Loans outstsanding:
Loans outstanding - Individually evaluated for impairment	0		0		0
Loans outstanding - Collectively evaluated for impairment	9,102		9,102		40,110
Loans outstanding - Loans acquired with credit deterioration	308		308		953
Total loans outstanding	9,410		9,410		41,063
Consumer and Other
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period					445
Balance, end of period	785		785		445
Allowance for loan losses:
Allowance for loan losses - Total	785		785		445
Loans outstsanding:
Total loans outstanding	54,442		54,442		66,631
Consumer and Other | Legacy
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	1,115	387	445	635
Provision (credit) for loan losses	(418)	303	700	(28)
Loans charged off	(2)	(133)	(485)	(256)
Recoveries of charged offs	24	24	59	230
Balance, end of period	719	581	719	581
Allowance for loan losses:
Allowance for loan losses - Individually evaluated for impairment	0		0		0
Allowance for loan losses - Collectively evaluated for impairment	719		719		445
Allowance for loan losses - Loans acquired with credit deterioration	0		0		0
Allowance for loan losses - Total	719	581	719	581
Loans outstsanding:
Loans outstanding - Individually evaluated for impairment	134		134		149
Loans outstanding - Collectively evaluated for impairment	28,014		28,014		13,963
Loans outstanding - Loans acquired with credit deterioration	0		0		0
Total loans outstanding	28,148		28,148		14,112
Consumer and Other | Acquired
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	89		0
Provision (credit) for loan losses	(51)		42
Loans charged off	(1)		(244)
Recoveries of charged offs	29		268
Balance, end of period	66		66
Allowance for loan losses:
Allowance for loan losses - Individually evaluated for impairment	0		0		0
Allowance for loan losses - Collectively evaluated for impairment	66		66		0
Allowance for loan losses - Loans acquired with credit deterioration	0		0		0
Allowance for loan losses - Total	66		66
Loans outstsanding:
Loans outstanding - Individually evaluated for impairment	0		0		0
Loans outstanding - Collectively evaluated for impairment	23,197		23,197		48,700
Loans outstanding - Loans acquired with credit deterioration	3,097		3,097		3,819
Total loans outstanding	$ 26,294		$ 26,294		$ 52,519

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Basis of Presentation

9 Months Ended

Sep. 30, 2012

Basis Of Presentation [Abstract]

Basis of Presentation

Basis of Presentation

Our condensed consolidated financial statements included herein have been prepared without an audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such SEC rules and regulations.

The condensed consolidated financial statements include the accounts of BBCN Bancorp and its wholly-owned subsidiaries, principally BBCN Bank. All intercompany transactions and balances have been eliminated in consolidation.

We believe that we have made all adjustments, consisting solely of normal recurring accruals, necessary to fairly present our financial position at September 30, 2012 and the results of our operations for the three and nine months then ended. Certain reclassifications have been made to prior period amounts to conform to the current year presentation. The results of operations for the interim periods are not necessarily indicative of results to be anticipated for the full year.

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are susceptible to change in the near term relate to the determination of the allowance and provision for loan losses, the evaluation of other than temporary impairment of investment securities, accounting for derivatives and hedging activities, the determination of the carrying value for cash surrender value of life insurance, the determination of the carrying value of goodwill and other intangible assets, accounting for deferred tax assets and related valuation allowances, the determination of the fair values of investment securities and other financial instruments, accounting for lease arrangements, accounting for incentive compensation, profit sharing and bonus payments and the valuation of servicing assets.

These unaudited condensed consolidated financial statements should be read along with the audited consolidated financial statements and accompanying notes included in our 2011 Annual Report on Form 10-K.

Recent Accounting Pronouncements:

FASB ASC 350 – In September 2011, the FASB issued an update (ASU No. 2011-08, Testing Goodwill for Impairment) impacting FASB ASC 350-20, Intangibles – Goodwill and Other. The amendments in this update permit an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than the carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The more likely than not threshold is defined as having a likelihood of more than 50 percent. If after assessing the totality of events or circumstances, it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. If an entity concludes that it is more likely than not that the fair value of the reporting unit is less than the carrying amount, the entity is required to perform the first step of the two-step impairment. If the carrying amount of a reporting unit exceeds its fair value, then the entity is required to perform the second step of the goodwill impairment test to measure the amount of the impairment loss. This update became effective for the Company for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The Company has performed an analysis under this approach and it did not have a material impact on the consolidated financial statements.

8

FASB ASC 220 – In December 2011, the FASB issued an update (ASU No. 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05) impacting FASB ASC 220, Comprehensive Income. This update defers the requirement to present items that are reclassified from accumulated other comprehensive income to net income in both the statement where net income is presented and the statement where other comprehensive income is presented. An entity should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before ASU No. 2011-05. This update became effective for the Company for interim and annual reporting periods beginning after December 15, 2011 and did not have a material impact on the consolidated financial statements.

FASB ASC 805 – In October 2012, the FASB issued an update (ASU No. 2012-06, Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution) impacting FASB ASC 805, Business Combinations. This update specifies that when an entity recognizes an indemnification asset as a result of a government-assisted acquisition of a financial institution and subsequently a change in the cash flows expected to be collected on the indemnification asset occurs, the entity should subsequently account for the change in the measurement of the indemnification asset on the same basis as the change in the assets subject to indemnification. Any amortization of changes in value should be limited to the contractual term of the indemnification agreement (the lesser of the term of the indemnification agreement and the remaining life of the indemnified assets). This update becomes effective for interim and annual periods beginning on or after December 15, 2012, and is consistent with the Company’s current accounting treatment of changes in expected cash flows and the indemnification asset and will not have a material impact on the consolidated financial statements.

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Fair Value Measurements - Assets Measured at Fair Value, Non-Recurring (Details) (Non-recurring basis, USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2012	Dec. 31, 2011
Estimate of Fair Value | Impaired loans at fair value - Real estate loans
Assets:
Assets		$ 7,928	$ 15,485
Estimate of Fair Value | Impaired loans at fair value - Commercial business
Assets:
Assets		727	6,360
Estimate of Fair Value | Loans held for sale, net
Assets:
Assets		2,725	6,901
Estimate of Fair Value | Other real estate owned
Assets:
Assets		4,072	3,471
Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired loans at fair value - Real estate loans
Assets:
Assets		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired loans at fair value - Commercial business
Assets:
Assets		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Loans held for sale, net
Assets:
Assets		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other real estate owned
Assets:
Assets		0	0
Significant Other Observable Inputs (Level 2) | Impaired loans at fair value - Real estate loans
Assets:
Assets		7,928	15,485
Significant Other Observable Inputs (Level 2) | Impaired loans at fair value - Commercial business
Assets:
Assets		727	6,360
Significant Other Observable Inputs (Level 2) | Loans held for sale, net
Assets:
Assets		2,725	6,901
Significant Other Observable Inputs (Level 2) | Other real estate owned
Assets:
Assets		4,072	3,471
Significant Unobservable Inputs (Level 3) | Impaired loans at fair value - Real estate loans
Assets:
Assets		0	0
Significant Unobservable Inputs (Level 3) | Impaired loans at fair value - Commercial business
Assets:
Assets		0	0
Significant Unobservable Inputs (Level 3) | Loans held for sale, net
Assets:
Assets		0	0
Significant Unobservable Inputs (Level 3) | Other real estate owned
Assets:
Assets		0	0
Total Gains (Losses) | Impaired loans at fair value - Real estate loans
Assets:
Total gains (losses)	(800)	(1,794)	(6,018)
Total Gains (Losses) | Impaired loans at fair value - Commercial business
Assets:
Total gains (losses)	(160)	(494)	(2,553)
Total Gains (Losses) | Loans held for sale, net
Assets:
Total gains (losses)	(380)	(536)	(3,393)
Total Gains (Losses) | Other real estate owned
Assets:
Total gains (losses)	$ (1,611)	$ (2,433)	$ (1,031)
Market approach valuation technique | Significant Unobservable Inputs (Level 3) | Impaired loans at fair value
Fair Value Inputs [Abstract]
Adjustments to external or internal appraised values for selling cost		8.50%
Market approach valuation technique | Significant Unobservable Inputs (Level 3) | Other real estate owned
Fair Value Inputs [Abstract]
Adjustments to external or internal appraised values for selling cost		8.50%
Minimum | Market approach valuation technique | Significant Unobservable Inputs (Level 3) | Loans held for sale, net
Fair Value Inputs [Abstract]
Adjustments to external or internal appraised values for selling cost		0.00%
Maximum | Market approach valuation technique | Significant Unobservable Inputs (Level 3) | Loans held for sale, net
Fair Value Inputs [Abstract]
Adjustments to external or internal appraised values for selling cost		5.00%

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Securities Available for Sale - Amortized Cost and Estimated Fair Value (Details) (USD $)	Sep. 30, 2012		Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost - Due within one year	$ 0
Amortized Cost - Due after one year through five years	340,000
Amortized Cost - Due after five years through ten years	3,883,000
Amortized Cost - Due after ten years	4,781,000
Amortized Cost	669,020,000		725,754,000
Estimated Fair Value - Due within one year	0
Estimated Fair Value - Due after one year through five years	358,000
Estimated Fair Value - Due after five years through ten years	4,451,000
Estimated Fair Value - Due after ten years	3,867,000
Estimated Fair Value	687,059,000		740,920,000
Available-for-sale Securities, Restricted	348,900,000		425,500,000
GSE collateralized mortgage obligations
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	230,819,000
Amortized Cost	230,819,000	[1]	222,400,000	[1]
Estimated Fair Value	235,669,000
Estimated Fair Value	235,669,000	[1]	227,836,000	[1]
GSE mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	414,487,000
Amortized Cost	414,487,000	[1]	477,555,000	[1]
Estimated Fair Value	427,589,000
Estimated Fair Value	427,589,000	[1]	487,754,000	[1]
Mutual funds - GSE mortgage related securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	14,710,000		14,710,000
Estimated Fair Value	$ 15,125,000		$ 14,918,000

[1] Government Sponsored Enterprises (GSE) investments were issued by GNMA, FNMA and FHLMC and are all residential mortgage-backed investments

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Borrowings (Tables)

9 Months Ended

Sep. 30, 2012

Debt Disclosure [Abstract]

Contractual Maturities for FHLB-SF Borrowings

At September 30, 2012, the contractual maturities for FHLB borrowings were as follows:

	Contractual Maturities		Maturity/ Put Date
	(In thousands)
Due within one year	$	194,000	$	245,815
Due after one year through five years	266,815		215,000
Due after five years through ten years	0		0
	$	460,815	$	460,815

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Loans Receivable and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2012

Receivables [Abstract]

Summary of Loans Receivable by Major Category

The following is a summary of loans receivable by major category:

	September 30, 2012			December 31, 2011
	(In thousands)
Loan portfolio composition
Real estate loans:
Residential	$	3,354		$	2,043
Commercial & industrial	2,881,079			2,631,880
Construction	56,433			44,756
Total real estate loans	2,940,866			2,678,679
Commercial business	898,977			849,576
Trade finance	177,285			146,684
Consumer and other	54,442			66,631
Total loans outstanding	4,071,570			3,741,570
Less: deferred loan fees	(2,076		)	(2,744		)
Gross loans receivable	4,069,494			3,738,826
Less: allowance for loan losses	(65,952		)	(61,952		)
Loans receivable, net	$	4,003,542		$	3,676,874

Outstanding Principle Balance and Related Carrying Amount of Acquired Loans

The loans acquired from Center are further segregated between Credit Impaired Loans (loans with credit deterioration at the time of the Merger and accounted for under ASC 310-30) and Performing Loans (loans that were pass graded at the time of the Merger).

The following table presents changes in the accretable discount on the acquired Credit Impaired Loans in the merger for the three and nine months ended September 30, 2012:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012			2011		2012			2011
	(In thousands)
Balance at beginning of period	$	22,966		$	0	$	31,999		$	0
Accretion	(3,415		)	0		(10,866		)	0
Changes in expected cash flows	516			0		(1,066		)	0
Balance at end of period	$	20,067		$	0	$	20,067		$	0

On the acquisition date, the amount

Loans and Leases Acquired, Accretable Yield Movement Schedule

The following table presents changes in the accretable discount on the acquired Credit Impaired Loans in the merger for the three and nine months ended September 30, 2012:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012			2011		2012			2011
	(In thousands)
Balance at beginning of period	$	22,966		$	0	$	31,999		$	0
Accretion	(3,415		)	0		(10,866		)	0
Changes in expected cash flows	516			0		(1,066		)	0
Balance at end of period	$	20,067		$	0	$	20,067		$	0

Allowance for Loan Losses by Portfolio Segment

The activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2012 is as follows:

	Legacy												Acquired												Total
	Real Estate			Commercial Business			Trade Finance			Consumer and Other			Real Estate			Commercial Business			Trade Finance			Consumer and Other
	(In thousands)
Three Months Ended September 30, 2012
Balance, beginning of period	$	37,237		$	20,880		$	3,164		$	1,115		$	2,283		$	397		$	340		$	89		$	65,505
Provision (credit) for loan losses	5,499			988			(495		)	(418		)	750			784			(157		)	(51		)	6,900
Loans charged off	(1,832		)	(5,574		)	0			(2		)	(242		)	(118		)	0			(1		)	(7,769		)
Recoveries of charged offs	973			275			0			24			0			15			0			29			1,316
Balance, end of period	$	41,877		$	16,569		$	2,669		$	719		$	2,791		$	1,078		$	183		$	66		$	65,952
Nine Months Ended September 30, 2012
Balance, beginning of period	$	39,040		$	20,681		$	1,786		$	445		$	0		$	0		$	0		$	0		$	61,952
Provision (credit) for loan losses	6,831			3,203			823			700			2,899			1,701			483			42			16,682
Loans charged off	(6,095		)	(8,470		)	0			(485		)	(411		)	(755		)	(300		)	(244		)	(16,760		)
Recoveries of charged offs	2,101			1,155			60			59			303			132			0			268			4,078
Balance, end of period	$	41,877		$	16,569		$	2,669		$	719		$	2,791		$	1,078		$	183		$	66		$	65,952

The activity in the allowance for loan losses by portfolio segment for the three and nine months endedSeptember 30, 2011 is as follows:

	Legacy											Total
	Real Estate			Commercial Business			Trade Finance		Consumer and Other
	(In thousands)
Three Months Ended September 30, 2011
Balance, beginning of period	$	39,063		$	20,058		$	188	$	387		$	59,696
Provision (credit) for loan losses	(429		)	2,007			1,602		303			3,483
Loans charged off	(2,358		)	(1,479		)	0		(133		)	(3,970		)
Recoveries of charged offs	455			321			0		24			800
Balance, end of period	$	36,731		$	20,907		$	1,790	$	581		$	60,009
Nine Months Ended September 30, 2011
Balance, beginning of period	$	36,563		$	24,930		$	192	$	635		$	62,320
Provision (credit) for loan losses	17,161			62			1,598		(28		)	18,793
Loans charged off	(18,193		)	(6,022		)	0		(256		)	(24,471		)
Recoveries of charged offs	1,200			1,937			0		230			3,367
Balance, end of period	$	36,731		$	20,907		$	1,790	$	581		$	60,009

The following table disaggregates the allowance for loan losses and the loans receivables by impairment methodology at September 30, 2012 and December 31, 2011:

	September 30, 2012
	Legacy								Acquired								Total
	Real Estate		Commercial Business		Trade Finance		Consumer and Other		Real Estate		Commercial Business		Trade Finance		Consumer and Other
	(In thousands)
Allowance for loan losses:
Individually evaluated for impairment	$	4,510	$	2,529	$	82	$	0	$	678	$	905	$	0	$	0	$	8,704
Collectively evaluated for impairment	37,367		14,040		2,587		719		1		173		183		66		55,136
Loans acquired with credit deterioration	0		0		0		0		2,112		0		0		0		2,112
Total	$	41,877	$	16,569	$	2,669	$	719	$	2,791	$	1,078	$	183	$	66	$	65,952
Loans outstanding:
Individually evaluated for impairment	$	35,031	$	24,912	$	5,968	$	134	$	13,611	$	2,663	$	0	$	0	$	82,319
Collectively evaluated for impairment	2,152,581		689,949		161,907		28,014		635,692		133,098		9,102		23,197		3,833,540
Loans acquired with credit deterioration	0		0		0		0		103,951		48,355		308		3,097		155,711
Total	$	2,187,612	$	714,861	$	167,875	$	28,148	$	753,254	$	184,116	$	9,410	$	26,294	$	4,071,570

	December 31, 2011
	Legacy								Acquired								Total
	Real Estate		Commercial Business		Trade Finance		Consumer and Other		Real Estate		Commercial Business		Trade Finance		Consumer and Other
	(In thousands)
Allowance for loan losses:
Individually evaluated for impairment	$	10,525	$	7,168	$	342	$	0	$	0	$	0	$	0	$	0	$	18,035
Collectively evaluated for impairment	28,515		13,513		1,444		445		0		0		0		0		43,917
Loans acquired with credit deterioration	0		0		0		0		0		0		0		0		0
Total	$	39,040	$	20,681	$	1,786	$	445	$	0	$	0	$	0	$	0	$	61,952
Loans outstanding:
Individually evaluated for impairment	$	53,023	$	34,922	$	4,963	$	149	$	0	$	0	$	0	$	0	$	93,057
Collectively evaluated for impairment	1,744,740		529,195		100,658		13,963		780,152		223,928		40,110		48,700		3,481,446
Loans acquired with credit deterioration	0		0		0		0		100,764		61,531		953		3,819		167,067
Total	$	1,797,763	$	564,117	$	105,621	$	14,112	$	880,916	$	285,459	$	41,063	$	52,519	$	3,741,570

Impaired Financing Receivables

The recorded investment in individually impaired loans was as follows:

	September 30, 2012			December 31, 2011
	(In thousands)
With Allocated Allowance
Without charge-off	$	72,827		$	67,262
With charge-off	448			341
With No Allocated Allowance
Without charge-off	5,111			19,064
With charge-off	3,933			6,390
Allowance on Impaired Loans	(8,704		)	(18,035		)
Impaired Loans, net of allowance	$	73,615		$	75,022

The following tables detail impaired loans (Legacy and Acquired) as of September 30, 2012 and December 31, 2011 and for the three and nine months ended September 30, 2012 and for the year ended December 31, 2011. Loans with no related allowance for loan losses are believed by management to have adequate collateral securing their carrying value.

	As of September 30, 2012							For the nine months ended September 30, 2012				For the three months ended September 30, 2012
Total Impaired Loans	Recorded Investment*		Unpaid Contractual Principal Balance		Related Allowance			Average Recorded Investment*		Interest Income Recognized during Impairment		Average Recorded Investment*		Interest Income Recognized during Impairment
	(In thousands)
With Related Allowance:
Real Estate—Residential	$	0	$	0	$	0		$	0	$	0	$	0	$	0
Real Estate—Commercial
Retail	4,453		4,608		(585		)	3,021		124		3,872		39
Hotel & Motel	15,580		16,932		(2,457		)	19,673		327		19,349		106
Gas Station & Car Wash	1,688		1,726		(539		)	3,162		69		2,496		23
Mixed Use	1,837		1,914		(260		)	3,753		0		3,540		0
Industrial & Warehouse	2,248		2,332		(443		)	3,297		67		1,845		22
Other	15,249		17,293		(904		)	13,675		483		13,596		160
Real Estate—Construction	0		0		0			32		0		0		0
Commercial Business	26,191		28,873		(3,434		)	23,850		1,048		24,899		341
Trade Finance	5,968		6,417		(82		)	2,856		108		3,243		63
Consumer and Other	60		60		0			135		3		30		2
	$	73,274	$	80,155	$	(8,704	)	$	73,454	$	2,229	$	72,870	$	756
With No Related Allowance
Real Estate—Residential	$	0	$	0	$	0		$	0	$	0	$	0	$	0
Real Estate—Commercial
Retail	948		3,847		0			1,384		0		939		0
Hotel & Motel	333		2,338		0			154		0		308		0
Gas Station & Car Wash	2,649		5,593		0			1,382		0		2,158		0
Mixed Use	0		0		0			0		0		0		0
Industrial & Warehouse	376		2,814		0			3,644		0		3,125		0
Other	1,569		2,528		0			2,269		0		1,750		0
Real Estate—Construction	1,710		1,710		0			1,710		85		1,710		28
Commercial Business	1,384		3,818		0			9,442		15		5,818		5
Trade Finance	0		0		0			2,295		0		2,226		0
Consumer and Other	74		93		0			126		0		105		0
	$	9,043	$	22,741	$	0		$	22,406	$	100	$	18,139	$	33
Total	$	82,317	$	102,896	$	(8,704	)	$	95,860	$	2,329	$	91,009	$	789

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

	As of September 30, 2012							For the nine months ended September 30, 2012				For the three months ended September 30, 2012
Acquired Impaired Loans	Recorded Investment*		Unpaid Contractual Principal Balance		Related Allowance			Average Recorded Investment*		Interest Income Recognized during Impairment		Average Recorded Investment*		Interest Income Recognized during Impairment
	(In thousands)
With Related Allowance:
Real Estate—Residential	$	0	$	0	$	0		$	0	$	0	$	0	$	0
Real Estate—Commercial
Retail	2,144		2,186		(148		)	828		86		1,546		26
Hotel & Motel	6,051		7,375		(351		)	4,595		0		6,082		0
Gas Station & Car Wash	0		0		0			71		0		0		0
Mixed Use	0		0		0			0		0		0		0
Industrial & Warehouse	822		889		(57		)	206		27		411		9
Other	3,484		4,467		(123		)	880		216		1,742		72
Real Estate—Construction	0		0		0			0		0		0		0
Commercial Business	2,282		3,176		(905		)	837		69		1,413		21
Trade Finance	0		0		0			0		0		0		0
Consumer and Other	0		0		0			0		0		0		0
	$	14,783	$	18,093	$	(1,584	)	$	7,417	$	398	$	11,194	$	128
With No Related Allowance
Real Estate—Residential	$	0	$	0	$	0		$	0	$	0	$	0	$	0
Real Estate—Commercial
Retail	4		224		0			1		0		2		0
Hotel & Motel	0		0		0			0		0		0		0
Gas Station & Car Wash	272		1,872		0			162		0		237		0
Mixed Use	0		0		0			0		0		0		0
Industrial & Warehouse	0		0		0			1,709		0		1,839		0
Other	835		1,248		0			655		0		796		0
Real Estate—Construction	0		0		0			0		0		0		0
Commercial Business	381		515		0			521		15		769		5
Trade Finance	0		0		0			0		0		0		0
Consumer and Other	0		0		0			0		0		0		0
	$	1,492	$	3,859	$	0		$	3,048	$	15	$	3,643	$	5
Total	$	16,275	$	21,952	$	(1,584	)	$	10,465	$	413	$	14,837	$	133

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

The table above includes only Acquired Loans that became impaired.

	For the nine months ended September 30, 2011				For the three months ended September 30, 2011
	Average Recorded Investment*		Interest Income Recognized during Impairment		Average Recorded Investment*		Interest Income Recognized during Impairment
	(In thousands)
With Related Allowance:
Real Estate—Residential	$	0	$	0	$	0	$	0
Real Estate—Commercial
Retail	3,891		25		2,713		8
Hotel & Motel	13,866		764		17,448		246
Gas Station & Car Wash	2,964		71		2,591		24
Mixed Use	1,336		52		1,234		17
Industrial & Warehouse	4,967		231		4,163		77
Other	4,000		382		7,400		127
Real Estate—Construction	3,099		0		0		0
Commercial Business	23,808		327		22,188		115
Trade Finance	0		0		0		0
Consumer and Other	0		0		0		0
	$	57,931	$	1,852	$	57,737	$	614
With No Related Allowance
Real Estate—Residential	$	0	$	0	$	0	$	0
Real Estate—Commercial
Retail	5,742		0		3,838		0
Hotel & Motel	5,182		0		2,369		0
Gas Station & Car Wash	3,204		0		2,307		0
Mixed Use	2,606		0		1,861		0
Industrial & Warehouse	2,313		0		2,571		0
Other	12,629		40		8,878		13
Real Estate—Construction	3,673		84		3,421		28
Commercial Business	11,480		133		10,887		43
Trade Finance	831		0		1,076		0
Consumer and Other	144		0		154		0
	$	47,804	$	257	$	37,362	$	84
Total	$	105,735	$	2,109	$	95,099	$	698

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

	As of December 31, 2011							For the year ended December 31, 2011
	Recorded Investment*		Unpaid Contractual Principal Balance**		Related Allowance			Average Recorded Investment*		Interest Income Recognized during Impairment
	(In thousands)
With Related Allowance:
Real Estate—Residential	$	0	$	0	$	0		$	0	$	0
Real Estate—Commercial
Retail	1,810		2,686		(668		)	3,611		34
Hotel & Motel	17,441		17,459		(4,093		)	14,581		1,013
Gas Station & Car Wash	2,265		2,669		(550		)	2,824		95
Mixed Use	2,822		2,840		(128		)	1,705		158
Industrial & Warehouse	4,242		4,246		(407		)	4,822		310
Other	14,982		14,994		(4,630		)	6,300		298
Real Estate—Construction	128		128		(49		)	2,504		0
Commercial Business	19,416		20,248		(7,168		)	24,941		538
Trade Finance	4,497		4,497		(342		)	899		71
Consumer and Other	0		0		0			0		0
	$	67,603	$	69,767	$	(18,035	)	$	62,187	$	2,517
With No Related Allowance
Real Estate—Residential	$	0	$	0	$	0		$	0	$	0
Real Estate—Commercial
Retail	2,067		4,789		0			4,871		0
Hotel & Motel	0		0		0			4,146		0
Gas Station & Car Wash	287		2,851		0			2,621		0
Mixed Use	0		0		0			2,013		0
Industrial & Warehouse	2,662		8,346		0			2,383		0
Other	2,605		4,252		0			10,521		0
Real Estate—Construction	1,710		1,710		0			3,280		113
Commercial Business	15,506		16,905		0			10,274		203
Trade Finance	467		467		0			758		30
Consumer and Other	150		180		0			145		0
	$	25,454	$	39,500	$	0		$	41,012	$	346
Total	$	93,057	$	109,267	$	(18,035	)	$	103,199	$	2,863

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

** The table has been revised to present unpaid contractual principal balances, whereas the Company had previously disclosed unpaid contractual principal balances that were net of charge-offs, interest applied to principal and purchase discounts.

Aging of Past Due Loans

The following tables present the aging of past due loans as of September 30, 2012 and December 31, 2011 by class of loans:

	As of September 30, 2012
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Non-accrual loans		Total Delinquent loans		Greater than 90 days and accruing
	(In thousands)
Legacy Loans
Real estate—Residential	$	29	$	0	$	0	$	29	$	0	$	29	$	0
Real estate—Commercial
Retail	1,670		0		0		1,670		2,291		3,961		0
Hotel & Motel	0		0		364		364		1,021		1,385		364
Gas Station & Car Wash	362		0		0		362		2,904		3,266		0
Mixed Use	0		0		0		0		1,837		1,837		0
Industrial & Warehouse	125		0		0		125		758		883		0
Other	0		263		0		263		6,150		6,413		0
Real estate—Construction	0		0		0		0		0		0		0
Commercial business	855		254		0		1,109		4,843		5,952		0
Trade finance	50		0		0		50		50		100		0
Consumer and other	17		0		0		17		74		91		0
Subtotal	$	3,108	$	517	$	364	$	3,989	$	19,928	$	23,917	$	364
Acquired Loans (1)
Real estate—Residential	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Real estate—Commercial
Retail	810		22		1,930		2,762		4		2,766		1,930
Hotel & Motel	0		1,549		938		2,487		6,051		8,538		938
Gas Station & Car Wash	232		0		3,134		3,366		272		3,638		3,134
Mixed Use	467		0		2,811		3,278		0		3,278		2,811
Industrial & Warehouse	18		119		0		137		0		137		0
Other	543		52		5,402		5,997		965		6,962		5,402
Real estate—Construction	0		0		6,305		6,305		0		6,305		6,305
Commercial business	1,592		676		1,147		3,415		1,315		4,730		1,147
Trade finance	0		0		0		0		0		0		0
Consumer and other	349		20		423		792		833		1,625		423
Subtotal	4,011		2,438		22,090		28,539		9,440		37,979		22,090
TOTAL	7,119		2,955		22,454		32,528		29,368		61,896		22,454

 (1) The acquired loans include Credit Impaired Loans (ASC 310-30 loans) and Performing Loans (loans that were pass graded at the time of the Merger).

	As of December 31, 2011
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Non-accrual loans		Total Delinquent loans		Greater than 90 days and accruing
	(In Thousands)
Legacy Loans
Real estate—Residential	$	36	$	0	$	0	$	36	$	0	$	36	$	0
Real estate—Commercial
Retail	428		0		0		428		2,615		3,043		0
Hotel & Motel	0		0		0		0		481		481		0
Gas Station & Car Wash	627		0		0		627		1,367		1,994		0
Mixed Use	0		0		0		0		820		820		0
Industrial & Warehouse	360		0		0		360		3,066		3,426		0
Other	0		119		0		119		10,992		11,111		0
Real estate—Construction	0		0		0		0		128		128		0
Commercial business	1,388		388		0		1,776		11,477		13,253		0
Trade finance	0		0		0		0		117		117		0
Consumer and other	3		0		0		3		150		153		0
Subtotal	2,842		507		0		3,349		31,213		34,562		0
Acquired Loans (1)
Real estate—Residential	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Real estate—Commercial
Retail	145		64		1,675		1,884		0		1,884		1,675
Hotel & Motel	0		45		0		45		0		45		0
Gas Station & Car Wash	2,536		175		820		3,531		0		3,531		820
Mixed Use	1,178		1,677		389		3,244		0		3,244		389
Industrial & Warehouse	3,372		0		110		3,482		0		3,482		110
Other	1,467		226		4,237		5,930		0		5,930		4,237
Real estate—Construction	0		4,499		0		4,499		0		4,499		0
Commercial business	1,739		1,383		9,132		12,254		0		12,254		9,132
Trade finance	0		0		202		202		0		202		202
Consumer and other	701		369		700		1,770		0		1,770		700
Subtotal	$	11,138	$	8,438	$	17,265	$	36,841	$	0	$	36,841	$	17,265
TOTAL	$	13,980	$	8,945	$	17,265	$	40,190	$	31,213	$	71,403	$	17,265

 (1) The acquired loans include Credit Impaired Loans (ASC 310-30 loans) and Performing Loans (loans that were pass graded at the time of the Merger).

W

Risk Category of Loans by Class of Loans

d December 31, 2011, Criticized Loans by class of loans were as follows:

	As of September 30, 2012
	Special Mention		Substandard		Doubtful/Loss		Total
	(In thousands)
Legacy Loans:
Real estate—Residential	$	0	$	29	$	0	$	29
Real estate—Commercial
Retail	3,059		12,188		0		15,247
Hotel & Motel	3,692		16,565		0		20,257
Gas Station & Car Wash	1,658		9,399		0		11,057
Mixed Use	1,774		3,480		0		5,254
Industrial & Warehouse	4,036		2,943		382		7,361
Other	2,958		14,695		0		17,653
Real estate—Construction	0		1,710		0		1,710
Commercial business	7,638		23,924		215		31,777
Trade finance	7,893		5,968		0		13,861
Consumer and other	0		954		0		954
Subtotal	$	32,708	$	91,855	$	597	$	125,160
Acquired Loans:
Real estate—Residential	$	0	$	0	$	0	$	0
Real estate—Commercial
Retail	13,042		7,296		0		20,338
Hotel & Motel	17,726		13,287		0		31,013
Gas Station & Car Wash	6,301		5,894		0		12,195
Mixed Use	2,320		4,017		0		6,337
Industrial & Warehouse	1,370		6,109		0		7,479
Other	4,739		16,327		0		21,066
Real estate—Construction	0		7,383		0		7,383
Commercial business	15,728		31,078		188		46,994
Trade finance	303		6		0		309
Consumer and other	422		4,226		91		4,739
Subtotal	$	61,951	$	95,623	$	279	$	157,853
Total	$	94,659	$	187,478	$	876	$	283,013

	As of December 31, 2011
	Special Mention		Substandard		Doubtful/Loss		Total
	(In thousands)
Legacy Loans:
Real estate—Residential	$	0	$	36	$	0	$	36
Real estate—Commercial
Retail	3,434		13,468		0		16,902
Hotel & Motel	5,005		17,876		0		22,881
Gas Station & Car Wash	3,491		2,552		0		6,043
Mixed Use	2,281		3,019		0		5,300
Industrial & Warehouse	3,992		7,227		404		11,623
Other	5,904		15,500		0		21,404
Real estate—Construction	0		1,838		0		1,838
Commercial business	11,360		30,116		6,007		47,483
Trade finance	273		4,963		0		5,236
Consumer and other	0		1,079		0		1,079
Subtotal	$	35,740	$	97,674	$	6,411	$	139,825
Acquired Loans:
Real estate—Residential	$	0	$	0	$	0	$	0
Real estate—Commercial
Retail	11,562		11,286		0		22,848
Hotel & Motel	13,081		16,677		0		29,758
Gas Station & Car Wash	5,645		5,755		0		11,400
Mixed Use	3,500		2,823		0		6,323
Industrial & Warehouse	2,659		3,750		0		6,409
Other	6,673		12,579		0		19,252
Real estate—Construction	0		5,485		0		5,485
Commercial business	16,062		39,536		353		55,951
Trade finance	126		827		0		953
Consumer and other	1,658		2,518		0		4,176
Subtotal	$	60,966	$	101,236	$	353	$	162,555
Total	$	96,706	$	198,910	$	6,764	$	302,380

The foll

Loans Sold From Loans Held For Investment

The following table presents loans sold from loans held for investment or transfered from held for investment to held for sale during the three and nine months ended September 30, 2012 and 2011 by portfolio segment:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Sales or reclassification to held for sale	(In thousands)
Real estate - Commercial	$	2,163	$	5,970	$	2,819	$	18,679
Real estate - Construction	0		0		0		4,600
Commercial Business	0		0		0		0
Total	$	2,163	$	5,970	$	2,819	$	23,279

Allowance for Loan Losses and Impaired Loans, Qualitative and Quantitative Analysis

The following table presents loans by portfolio segment and impairment method at September 30, 2012 and December 31, 2011:

	As of September 30, 2012
	Real estate - Residential			Real estate - Commercial			Real estate - Construction			Commercial business			Trade finance			Consumer and other			Total
	(In thousands)
Impaired loans (Gross carrying value)	$	0		$	46,930		$	1,710		$	27,575		$	5,968		$	134		$	82,317
Specific allowance	$	0		$	5,188		$	0		$	3,434		$	82		$	0		$	8,704
Loss coverage ratio	0.0		%	11.1		%	0.0		%	12.5		%	1.4		%	0.0		%	10.6		%
Non-impaired loans	$	3,354		$	2,834,149		$	54,723		$	871,402		$	171,317		$	54,308		$	3,989,253
General allowance	$	32		$	38,640		$	808		$	14,213		$	2,770		$	785		$	57,248
Loss coverage ratio	1.0		%	1.4		%	1.5		%	1.6		%	1.6		%	1.4		%	1.4		%
Total loans	$	3,354		$	2,881,079		$	56,433		$	898,977		$	177,285		$	54,442		$	4,071,570
Total allowance for loan losses	$	32		$	43,828		$	808		$	17,647		$	2,852		$	785		$	65,952
Loss coverage ratio	1.0		%	1.5		%	1.4		%	2.0		%	1.6		%	1.4		%	1.6		%

	As of December 31, 2011
	Real estate - Residential			Real estate - Commercial			Real estate - Construction			Commercial business			Trade finance			Consumer and other			Total
	(In thousands)
Impaired loans (Gross carrying value)	$	0		$	51,183		$	1,838		$	34,922		$	4,964		$	150		$	93,057
Specific allowance	$	0		$	10,476		$	49		$	7,168		$	342		$	0		$	18,035
Loss coverage ratio	0.0		%	20.5		%	2.7		%	20.5		%	6.9		%	0.0		%	19.4		%
Non-impaired loans	$	2,043		$	2,580,697		$	42,918		$	814,654		$	141,720		$	66,481		$	3,648,513
General allowance	$	9		$	27,831		$	675		$	13,513		$	1,444		$	445		$	43,917
Loss coverage ratio	0.4		%	1.1		%	1.6		%	1.7		%	1.0		%	0.7		%	1.2		%
Total loans	$	2,043		$	2,631,880		$	44,756		$	849,576		$	146,684		$	66,631		$	3,741,570
Total allowance for loan losses	$	9		$	38,307		$	724		$	20,681		$	1,786		$	445		$	61,952
Loss coverage ratio	0.4		%	1.5		%	1.6		%	2.4		%	1.2		%	0.7		%	1.7		%

Troubled Debt Restructurings

The following table presents loans by class modified as TDRs that occurred during the three and nine months ended September 30, 2012:

	Three Months Ended September 30, 2012					Nine Months Ended September 30, 2012
	Number of Loans	Pre- Modification		Post- Modification		Number of Loans	Pre- Modification		Post- Modification
	(Dollars in thousand)
Legacy Loans:
Real estate - Commercial
Retail	0	$	0	$	0	4	$	976	$	935
Hotel & Motel	0	0		0		1	1,479		1,447
Gas Station & Car Wash	0	0		0		1	216		97
Mixed Use	0	0		0			0		0
Industrial & Warehouse	0	0		0		1	1,060		1,045
Other	0	0		0		2	8,604		5,581
Real estate - Construction	0	0		0		0	0		0
Commercial business	4	2,299		2,251		11	3,666		4,528
Trade Finance	0	0		0		1	0		50
Subtotal	4	$	2,299	$	2,251	21	$	16,001	$	13,683
Acquired Loans:
Real estate - Commercial
Retail	1	$	401	$	398	2	$	1,458	$	1,341
Hotel & Motel	0	0		0		1	6,165		6,051
Gas Station & Car Wash	0	0		0		0	0		0
Mixed Use	0	0		0		0	0		0
Industrial & Warehouse	0	0		0		0	0		0
Other	1	654		643		1	670		643
Real estate - Construction	0	0		0		0	0		0
Commercial business	1	241		230		5	748		1,425
Trade Finance	0	0		0		0	0		0
Subtotal	3	$	1,296	$	1,271	9	$	9,041	$	9,460
Total	7	$	3,595	$	3,522	30	$	25,042	$	23,143

A summary of TDRs on accrual and non-accrual by type of concession as of September 30, 2012 and December 31, 2011 is presented below:

	As of September 30, 2012
	TDR on accrual								TDR on non-accrual								TOTAL
	Real estate - Commercial		Commercial Business		Other		Total		Real estate - Commercial		Commercial Business		Other		Total
	(In thousands)
Payment concession	$	2,491	$	2,028	$	0	$	4,519	$	8,871	$	3,299	$	0	$	12,170	$	16,689
Maturity / Amortization concession	398		4,267		60		4,725		662		1,810		74		2,546		7,271
Rate concession	11,896		1,035		0		12,931		8,055		47		0		8,102		21,033
Principal forgiveness	0		0		0		0		0		67		0		67		67
	$	14,785	$	7,330	$	60	$	22,175	$	17,588	$	5,223	$	74	$	22,885	$	45,060

	As of December 31, 2011
	TDR on accrual								TDR on non-accrual								TOTAL
	Real estate - Commercial		Commercial Business		Other		Total		Real estate - Commercial		Commercial Business		Other		Total
	(In thousands)
Payment concession	$	947	$	1,364	$	0	$	2,311	$	3,840	$	3,438	$	0	$	7,278	$	9,589
Maturity / Amortization concession	0		1,355		0		1,355		1,181		1,738		0		2,919		4,274
Rate concession	12,375		2,735		0		15,110		3,344		397		0		3,741		18,851
Principal forgiveness	0		0		0		0		0		78		0		78		78
	$	13,322	$	5,454	$	0	$	18,776	$	8,365	$	5,651	$	0	$	14,016	$	32,792

Summary of Troubled Debt Restructurings with Subsequent Payment Default

The following table presents loans by class for TDRs that have been modified within the previous twelve months and have subsequently had a payment default during the three and nine months ended September 30, 2012:

	Three Months Ended September 30, 2012			Nine Months Ended September 30, 2012
	Number of Loans	Balance		Number of Loans	Balance
	(Dollars In thousands)
Legacy Loans:
Real estate - Commercial
Retail	0	$	0	0	$	0
Gas Station & Car Wash	1	215		1	215
Industrial & Warehouse	0	0		1	1,045
Other	1	718		1	718
Commercial Business	2	45		2	45
Subtotal	4	$	978	5	$	2,023
Acquired Loans:
Real estate - Commercial
Retail	0	$	0	0	$	0
Hotel & Motel	0	0		1	6,051
Industrial & Warehouse	0	0		0	0
Other	0	0		0	0
Commercial Business	1	148		1	148
Subtotal	1	$	148	2	$	6,199
	5	$	1,126	7	$	8,222

Covered Non-performing Assets

The covered nonperforming assets at September 30, 2012 and December 31, 2011 were as follows:

	September 30, 2012		December 31, 2011
	(In thousands)
Covered loans on non-accrual status	$	476	$	0
Covered other real estate owned	1,821		3,575
Total covered nonperforming assets	$	2,297	$	3,575
Acquired covered loans	$	78,141	$	89,959

XML

Borrowings - Maturities of FHLB Borrowings (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012
Contractual Maturities
Extinguishment of Debt [Line Items]
Due within one year	$ 194,000
Due after one year through five years	266,815
Due after five years through ten years	0
Total	460,815
Maturity/Put Date
Extinguishment of Debt [Line Items]
Due within one year	245,815
Due after one year through five years	215,000
Due after five years through ten years	0
Total	$ 460,815

XML

Securities Available for Sale - Aggregate Unrealized Losses and Fair Value (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012 security	Dec. 31, 2011 security
Schedule of Available-for-sale Securities [Line Items]
Number of Securities, Less than 12 months	10	8
Number of Securities, 12 months or longer	2	2
Number of Securities, Total	12	10
Fair Value - Less than 12 months	$ 16,864	$ 46,616
Fair Value - 12 months or longer	7,293	17,310
Fair Value - Total	24,157	63,926
Gross Unrealized Losses - Less than 12 months	(132)	(170)
Gross Unrealized Losses - 12 months or longer	(995)	(1,200)
Gross Unrealized Losses - Total	(1,127)	(1,370)
GSE collateralized mortgage obligations
Schedule of Available-for-sale Securities [Line Items]
Number of Securities, Less than 12 months	4	2
Number of Securities, 12 months or longer	0	1
Number of Securities, Total	4	3
Fair Value - Less than 12 months	7,323	3,305
Fair Value - 12 months or longer	0	14,007
Fair Value - Total	7,323	17,312
Gross Unrealized Losses - Less than 12 months	(25)	(28)
Gross Unrealized Losses - 12 months or longer	0	(16)
Gross Unrealized Losses - Total	(25)	(44)
GSE mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Number of Securities, Less than 12 months	6	5
Number of Securities, 12 months or longer	1	0
Number of Securities, Total	7	5
Fair Value - Less than 12 months	9,541	38,082
Fair Value - 12 months or longer	3,756	0
Fair Value - Total	13,297	38,082
Gross Unrealized Losses - Less than 12 months	(107)	(123)
Gross Unrealized Losses - 12 months or longer	(34)	0
Gross Unrealized Losses - Total	(141)	(123)
Trust preferred securities
Schedule of Available-for-sale Securities [Line Items]
Number of Securities, Less than 12 months	0	0
Number of Securities, 12 months or longer	1	1
Number of Securities, Total	1	1
Fair Value - Less than 12 months	0	0
Fair Value - 12 months or longer	3,537	3,303
Fair Value - Total	3,537	3,303
Gross Unrealized Losses - Less than 12 months	0	0
Gross Unrealized Losses - 12 months or longer	(961)	(1,184)
Gross Unrealized Losses - Total	(961)	(1,184)
Mutual funds - GSE mortgage related securities
Schedule of Available-for-sale Securities [Line Items]
Number of Securities, Less than 12 months	0	1
Number of Securities, 12 months or longer	0	0
Number of Securities, Total	0	1
Fair Value - Less than 12 months	0	5,229
Fair Value - 12 months or longer	0	0
Fair Value - Total	0	5,229
Gross Unrealized Losses - Less than 12 months	0	(19)
Gross Unrealized Losses - 12 months or longer	0	0
Gross Unrealized Losses - Total	$ 0	$ (19)

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Subordinated Debentures (Tables)

9 Months Ended

Sep. 30, 2012

Subordinated Borrowings [Abstract]

Summary of Trust Preferred Securities and Debentures

The following table is a summary of trust preferred securities and debentures at September 30, 2012:

Issuance Trust	Issuance Date	Trust Preferred Security Amount		Subordinated Debentures Amount		Rate Type	Initial Rate		Coupon Rate at September 30, 2012			Maturity Date
		(Dollars in thousands)
Nara Capital Trust III	6/5/2003	$	5,000	$	5,155	Variable	4.44	%	3.54	%		6/15/2033
Nara Statutory Trust IV	12/22/2003	5,000		5,155		Variable	4.02	%	3.31	%		1/7/2034
Nara Statutory Trust V	12/17/2003	10,000		10,310		Variable	4.12	%	3.34	%		12/17/2033
Nara Statutory Trust VI	3/22/2007	8,000		8,248		Variable	7.00	%	2.04	%		6/15/2037
Center Capital Trust I	12/30/2003	18,000		12,941		Variable	4.01	%	3.31	%	*	1/7/2034
TOTAL ISSUANCE		$	46,000	$	41,809

* The Center Capital Trust I trust preferred security was assumed in the Merger. The remaining discount was $5.6 million at September 30, 2012 and the effective rate of the security, including the effect of the discount accretion, was 6.03% at September 30, 2012.

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Derivative Financial Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

At September 30, 2012 and December 31, 2011, summary information about these interest-rate caps is as follows:

	September 30, 2012			December 31, 2011
Notional amounts	$	50	million	$	50	million
Weighted average pay rates	N/A			N/A
Weighted average receive rates	N/A			N/A
Weighted average maturity	0.41 years			1.16 years
Fair value of combined interest rate caps	$	0		$	9	thousand

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The effect of derivative instruments on the Consolidated Statement of Income for the three and nine months endedSeptember 30, 2012 and 2011 are as follows:

		Three Months Ended September 30,					Nine Months Ended September 30,
		2012		2011			2012			2011
	Location of Gain or (Loss) Recognized in Income on Derivatives	Amount of Gain or (Loss) Recognized in Income on Derivatives					Amount of Gain or (Loss) Recognized in Income on Derivatives
		(In thousands)
Derivatives not designated as hedging instruments under FASB ASC 815:
Interest rate contracts (1)	Other income	$	—	$	(14	)	$	(9	)	$	(153	)

(1) Includes amounts representing the net interest payments as stated in the contractual agreements and the valuation gains or (losses) on interest rate contracts not designated as hedging instruments.

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Condensed Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 61,696	$ 22,879
Adjustments to reconcile net income to net cash from operating activities:
Depreciation, amortization, net of discount accretion	(18,518)	6,242
Stock-based compensation expense	1,959	52
Provision for loan losses	16,682	18,792
Valuation adjustment of loans held for sale	703	35
Valuation adjustment of OREO	2,659	491
Proceeds from sales of loans	90,022	82,849
Originations of loans held for sale	(97,968)	(57,713)
Net gains on sales of SBA and other loans	(6,014)	(6,307)
Net change in bank owned life insurance	(902)	(560)
Net gains on sales and calls of securities available for sale	(949)	(70)
Net gains on sales of OREO	(41)	(135)
Net valuation gains (losses) on interest rate swaps and caps	(24)	120
Change in accrued interest receivable	558	391
Change in deferred income taxes	7,625	6,524
Change in prepaid FDIC insurance	1,508	2,995
Change in investments in affordable housing partnership	1,591	0
Change in FDIC loss share receivable	3,743	0
Change in other assets	(9,532)	(9,377)
Change in accrued interest payable	(1,068)	(1,078)
Change in other liabilities	11,754	1,017
Net cash provided by operating activities	65,484	67,147
CASH FLOWS FROM INVESTING ACTIVITIES
Net change in loans receivable	(326,194)	(171,323)
Proceeds from sales of securities available for sale	28,446	0
Proceeds from sales of OREO	4,341	2,945
Proceeds from matured term federal funds	100,000	0
Proceeds from sales of equipment	3	0
Purchase of premises and equipment	(5,572)	(833)
Purchase of securities available for sale	(111,696)	(64,517)
Purchase of Federal Reserve Bank stock	0	(5)
Redemption of Federal Home Loan Bank Stock	3,873	2,156
Purchase of term federal funds	(60,000)	0
Proceeds from matured, called, or paiddown securities available for sale	135,686	139,903
Net cash provided by (used in) investing activities	(231,113)	(91,674)
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits	114,344	91,082
Net change in secured borrowings	0	(11,057)
Redemption of subordinated debenture	(10,400)	0
Redemption of preferred stock	(122,000)	0
Payment of cash dividends on Preferred Stock	(3,648)	(2,512)
Proceeds from FHLB borrowings	625,000	0
Repayment of FHLB borrowings	(506,145)	(50,000)
Issuance of additional stock pursuant to various stock plans	200	510
Redemption of common stock warrant	(2,189)	0
Net cash used in financing activities	95,162	28,023
NET CHANGE IN CASH AND CASH EQUIVALENTS	(70,467)	3,496
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	300,110	172,331
CASH AND CASH EQUIVALENTS, END OF PERIOD	229,643	175,827
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	23,429	25,226
Income taxes paid	26,663	15,182
Other Noncash Investing and Financing Items [Abstract]
Transfer from loans receivable to other real estate owned	3,470	6,558
Transfer from loan receivables to loans held for sale	2,820	23,279
Non-cash goodwill adjustment, net	$ 591	$ 0

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below:

			Fair Value Measurements at the End of the Reporting Period Using
	September 30, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets:
Securities available for sale:
GSE collateralized mortgage obligations	$	235,669	$	0	$	235,669	$	0
GSE mortgage-backed securities	427,589		0		427,589		0
Trust preferred security	3,537		0		3,537		0
Municipal bonds	5,139		0		5,139		0
Mutual funds	15,125		15,125		0		0

There were no transfers between Level 1, 2 and 3 during the period ended September 30, 2012.

			Fair Value Measurements at the End of the Reporting Period Using
	December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets:
Securities available for sale:
U.S. Treasury	$	300	$	0	$	300	$	0
GSE collateralized mortgage obligations	227,836		0		227,836		0
GSE mortgage-backed securities	487,754		0		487,754		0
Trust preferred security	4,348		0		4,348		0
Municipal bonds	5,764		0		5,764		0
Mutual funds	14,918		14,918		0		0
Derivatives - Interest rate caps	9		0		9		0

Assets Measured at Fair Value on a Non-recurring Basis

Assets measured at fair value on a non-recurring basis are summarized below:

			Fair Value Measurements at the End of the Reporting Period Using
	September 30, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses) for the Nine Months Ended September 30, 2012			Total Gains (Losses) for the Three Months Ended September 30, 2012
	(In thousands)
Assets:
Impaired loans at fair value:
Real estate loans	$	7,928	$	0	$	7,928	$	0	$	(1,794	)	$	(800	)
Commercial business	727		0		727		0		(494		)	(160		)
Loans held for sale, net	2,725		0		2,725		0		(536		)	(380		)
Other real estate owned	4,072		0		4072		0		(2,433		)	(1,611		)

			Fair Value Measurements at the End of the Reporting Period Using
	December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses) for the Twelve Months Ended December 31, 2011
	(In thousands)
Assets:
Impaired loans at fair value:
Real estate loans	$	15,485	$	0	$	15,485	$	0	$	(6,018	)
Commercial business	6,360		0		6360		0		(2,553		)
Loans held for sale, net	6,901		0		6,901		0		(3,393		)
Other real estate owned	3,471		0		3471		0		(1,031		)

Carrying Amounts and Estimated Fair Values of Financial Instruments

Carrying amounts and estimated fair values of financial instruments, not previously presented, at September 30, 2012 and December 31, 2011 were as follows:

	September 30, 2012
	Carrying Amount		Estimated Fair Value		Fair Value Measurement Using
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	229,643	$	229,643	Level 1
Term federal funds sold	0		0		Level 1
Loans held for sale	58,484		64,501		Level 2
Loans receivable—net	4,003,542		4,301,334		Level 3
Federal Home Loan Bank stock	23,500		N/A		N/A
Accrued interest receivable	12,881		12,881		Level 2
FDIC loss share receivable	7,325		7,325		Level 3
Customers’ liabilities on acceptances	10,373		10,373		Level 2
Financial Liabilities:
Noninterest-bearing deposits	$	1,105,161	$	1,105,161	Level 2
Saving and other interest bearing demand deposits	1,331,013		1,331,013		Level 2
Time deposits	1,616,350		1,611,240		Level 2
Borrowings from Federal Home Loan Bank	460,815		458,392		Level 2
Subordinated debentures	41,809		32,822		Level 2
Accrued interest payable	5,451		5,451		Level 2
Bank’s liabilities on acceptances outstanding	10,373		10,373		Level 2
	December 31, 2011
	Carrying Amount		Estimated Fair Value
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	300,110	$	300,110
Term federal funds sold	40,000		40,000
Loans held for sale	42,407		43,782
Loans receivable—net	3,676,874		3,933,710
Federal Home Loan Bank stock	27,373		N/A
Accrued interest receivable	13,439		13,439
FDIC loss share receivable	10,819		10,819
Customers’ liabilities on acceptances	10,515		10,515
Financial Liabilities:
Noninterest-bearing deposits	984,350		984,350
Saving and other interest bearing demand deposits	1,435,441		1,435,441
Time deposits	1,521,101		1,532,152
Borrowings from Federal Home Loan Bank	344,402		349,311
Subordinated debentures	52,102		53,757
Accrued interest payable	6,519		6,519
Bank’s liabilities on acceptances outstanding	10,515		10,515

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Earnings Per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Net income available to common stockholders (Numerator)
Net income as reported	$ 18,398	$ 9,815	$ 61,696	$ 22,879
Less: preferred stock dividends and accretion of preferred stock discount	0	(1,077)	(5,640)	(3,227)
Basic EPS - common stock	18,398	8,738	56,056	19,652
Diluted EPS - common stock	$ 18,398	$ 8,738	$ 56,056	$ 19,652
Shares (Denominator)
Basic EPS - common stock	78,015,960	38,098,142	78,004,458	38,044,625
Effect of Dilutive Securities:
Stock Options and Performance Units	87,835	5,541	77,601	25,516
Common stock warrants	0	0	0	0
Diluted EPS - common stock	78,103,795	38,103,683	78,082,059	38,070,141
Per Share (Amount)
Basic EPS - common stock	$ 0.24	$ 0.23	$ 0.72	$ 0.52
Diluted EPS - common stock	$ 0.24	$ 0.23	$ 0.72	$ 0.52
Stock options and restricted shares
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive shares of common stock	565,000	381,000	564,000	376,000
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive shares of common stock	337,000	521,000	337,000	521,000

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Loans Receivable and Allowance for Loan Losses - Troubled Debt Restructurings on Financing Receivables (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2012 loan	Sep. 30, 2012 loan	Dec. 31, 2011
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	$ 45,060,000	$ 45,060,000	$ 32,792,000
Troubled Debt Restructuring, By Loan Class
Number of Loans	7	30
Pre-Modification	3,595,000	25,042,000
Post-Modification	3,522,000	23,143,000
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans	5	7
Balance	1,126,000	8,222,000
Specific reserves	1,900,000	1,900,000
Charge offs	6,000	124,000
Specific reserves for the TDRs	113,000	113,000
Specific reserves allocated to TDRs	6,100,000	6,100,000	6,400,000
Payment concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	16,689,000	16,689,000	9,589,000
Maturity/ Amortization concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	7,271,000	7,271,000	4,274,000
Rate concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	21,033,000	21,033,000	18,851,000
Principal forgiveness
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	67,000	67,000	78,000
TDR on accrual
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	22,175,000	22,175,000	18,776,000
TDR on accrual | Payment concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	4,519,000	4,519,000	2,311,000
TDR on accrual | Maturity/ Amortization concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	4,725,000	4,725,000	1,355,000
TDR on accrual | Rate concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	12,931,000	12,931,000	15,110,000
TDR on accrual | Principal forgiveness
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	0	0
TDR on non-accrual
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	22,885,000	22,885,000	14,016,000
TDR on non-accrual | Payment concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	12,170,000	12,170,000	7,278,000
TDR on non-accrual | Maturity/ Amortization concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	2,546,000	2,546,000	2,919,000
TDR on non-accrual | Rate concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	8,102,000	8,102,000	3,741,000
TDR on non-accrual | Principal forgiveness
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	67,000	67,000	78,000
Real estate - Commercial | TDR on accrual
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	9	9	6
Commercial business | TDR on accrual
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	27	27	19
Real Estate | Real estate - Commercial | TDR on accrual
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	14,785,000	14,785,000	13,322,000
Real Estate | Real estate - Commercial | TDR on accrual | Payment concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	2,491,000	2,491,000	947,000
Real Estate | Real estate - Commercial | TDR on accrual | Maturity/ Amortization concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	398,000	398,000	0
Real Estate | Real estate - Commercial | TDR on accrual | Rate concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	11,896,000	11,896,000	12,375,000
Real Estate | Real estate - Commercial | TDR on accrual | Principal forgiveness
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	0	0
Real Estate | Real estate - Commercial | TDR on non-accrual
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	17,588,000	17,588,000	8,365,000
Real Estate | Real estate - Commercial | TDR on non-accrual | Payment concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	8,871,000	8,871,000	3,840,000
Real Estate | Real estate - Commercial | TDR on non-accrual | Maturity/ Amortization concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	662,000	662,000	1,181,000
Real Estate | Real estate - Commercial | TDR on non-accrual | Rate concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	8,055,000	8,055,000	3,344,000
Real Estate | Real estate - Commercial | TDR on non-accrual | Principal forgiveness
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	0	0
Commercial Business | TDR on accrual
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	7,330,000	7,330,000	5,454,000
Commercial Business | TDR on accrual | Payment concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	2,028,000	2,028,000	1,364,000
Commercial Business | TDR on accrual | Maturity/ Amortization concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	4,267,000	4,267,000	1,355,000
Commercial Business | TDR on accrual | Rate concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	1,035,000	1,035,000	2,735,000
Commercial Business | TDR on accrual | Principal forgiveness
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	0	0
Commercial Business | TDR on non-accrual
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	5,223,000	5,223,000	5,651,000
Commercial Business | TDR on non-accrual | Payment concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	3,299,000	3,299,000	3,438,000
Commercial Business | TDR on non-accrual | Maturity/ Amortization concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	1,810,000	1,810,000	1,738,000
Commercial Business | TDR on non-accrual | Rate concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	47,000	47,000	397,000
Commercial Business | TDR on non-accrual | Principal forgiveness
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	67,000	67,000	78,000
Trade Finance and Other | TDR on accrual
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	60,000	60,000	0
Trade Finance and Other | TDR on accrual | Payment concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	0	0
Trade Finance and Other | TDR on accrual | Maturity/ Amortization concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	60,000	60,000	0
Trade Finance and Other | TDR on accrual | Rate concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	0	0
Trade Finance and Other | TDR on accrual | Principal forgiveness
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	0	0
Trade Finance and Other | TDR on non-accrual
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	74,000	74,000	0
Trade Finance and Other | TDR on non-accrual | Payment concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	0	0
Trade Finance and Other | TDR on non-accrual | Maturity/ Amortization concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	74,000	74,000	0
Trade Finance and Other | TDR on non-accrual | Rate concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	0	0
Trade Finance and Other | TDR on non-accrual | Principal forgiveness
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	0	0
Legacy
Troubled Debt Restructuring, By Loan Class
Number of Loans	4	21
Pre-Modification	2,299,000	16,001,000
Post-Modification	2,251,000	13,683,000
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans	4	5
Balance	978,000	2,023,000
Legacy | Real Estate | Real estate - Commercial | Retail
Troubled Debt Restructuring, By Loan Class
Number of Loans	0	4
Pre-Modification	0	976,000
Post-Modification	0	935,000
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans	0	0
Balance	0	0
Legacy | Real Estate | Real estate - Commercial | Hotel & Motel
Troubled Debt Restructuring, By Loan Class
Number of Loans	0	1
Pre-Modification	0	1,479,000
Post-Modification	0	1,447,000
Legacy | Real Estate | Real estate - Commercial | Gas Station & Car Wash
Troubled Debt Restructuring, By Loan Class
Number of Loans	0	1
Pre-Modification	0	216,000
Post-Modification	0	97,000
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans	1	1
Balance	215,000	215,000
Legacy | Real Estate | Real estate - Commercial | Mixed Use
Troubled Debt Restructuring, By Loan Class
Number of Loans	0
Pre-Modification	0	0
Post-Modification	0	0
Legacy | Real Estate | Real estate - Commercial | Industrial & Warehouse
Troubled Debt Restructuring, By Loan Class
Number of Loans	0	1
Pre-Modification	0	1,060,000
Post-Modification	0	1,045,000
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans	0	1
Balance	0	1,045,000
Legacy | Real Estate | Real estate - Commercial | Other
Troubled Debt Restructuring, By Loan Class
Number of Loans	0	2
Pre-Modification	0	8,604,000
Post-Modification	0	5,581,000
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans	1	1
Balance	718,000	718,000
Legacy | Real Estate | Real estate - Construction
Troubled Debt Restructuring, By Loan Class
Number of Loans	0	0
Pre-Modification	0	0
Post-Modification	0	0
Legacy | Commercial Business
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans	2	2
Balance	45,000	45,000
Legacy | Commercial Business | Commercial business
Troubled Debt Restructuring, By Loan Class
Number of Loans	4	11
Pre-Modification	2,299,000	3,666,000
Post-Modification	2,251,000	4,528,000
Legacy | Trade Finance and Other | Trade Finance
Troubled Debt Restructuring, By Loan Class
Number of Loans	0	1
Pre-Modification	0	0
Post-Modification	0	50,000
Acquired
Troubled Debt Restructuring, By Loan Class
Number of Loans	3	9
Pre-Modification	1,296,000	9,041,000
Post-Modification	1,271,000	9,460,000
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans	1	2
Balance	148,000	6,199,000
Acquired | Real Estate | Real estate - Commercial | Retail
Troubled Debt Restructuring, By Loan Class
Number of Loans	1	2
Pre-Modification	401,000	1,458,000
Post-Modification	398,000	1,341,000
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans	0	0
Balance	0	0
Acquired | Real Estate | Real estate - Commercial | Hotel & Motel
Troubled Debt Restructuring, By Loan Class
Number of Loans	0	1
Pre-Modification	0	6,165,000
Post-Modification	0	6,051,000
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans	0	1
Balance	0	6,051,000
Acquired | Real Estate | Real estate - Commercial | Gas Station & Car Wash
Troubled Debt Restructuring, By Loan Class
Number of Loans	0	0
Pre-Modification	0	0
Post-Modification	0	0
Acquired | Real Estate | Real estate - Commercial | Mixed Use
Troubled Debt Restructuring, By Loan Class
Number of Loans	0	0
Pre-Modification	0	0
Post-Modification	0	0
Acquired | Real Estate | Real estate - Commercial | Industrial & Warehouse
Troubled Debt Restructuring, By Loan Class
Number of Loans	0	0
Pre-Modification	0	0
Post-Modification	0	0
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans	0	0
Balance	0	0
Acquired | Real Estate | Real estate - Commercial | Other
Troubled Debt Restructuring, By Loan Class
Number of Loans	1	1
Pre-Modification	654,000	670,000
Post-Modification	643,000	643,000
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans	0	0
Balance	0	0
Acquired | Real Estate | Real estate - Construction
Troubled Debt Restructuring, By Loan Class
Number of Loans	0	0
Pre-Modification	0	0
Post-Modification	0	0
Acquired | Commercial Business
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans	1	1
Balance	148,000	148,000
Acquired | Commercial Business | Commercial business
Troubled Debt Restructuring, By Loan Class
Number of Loans	1	5
Pre-Modification	241,000	748,000
Post-Modification	230,000	1,425,000
Acquired | Trade Finance and Other
Troubled Debt Restructuring, By Loan Class
Number of Loans	0	0
Pre-Modification	0	0
Post-Modification	$ 0	$ 0

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Condensed Consolidated Statements Of Financial Condition (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Cash and Cash Equivalents [Abstract]
Cash and due from banks	$ 74,441	$ 81,785
Interest-earning deposit at Federal Reserve Bank	155,202	217,800
Federal funds sold	0	525
Total cash and cash equivalents	229,643	300,110
Term federal funds sold, original maturities more than 90 days	0	40,000
Securities available for sale, at fair value	687,059	740,920
Loans held for sale, at the lower of cost or fair value	58,484	42,407
Loans receivable, net of allowance for loan losses (September 30, 2012 - $65,952; December 31, 2011 - $61,952)	4,003,542	3,676,874
Other real estate owned, net	4,135	7,624
Federal Home Loan Bank (FHLB) stock, at cost	23,500	27,373
Premises and equipment, net of accumulated depreciation and amortization (September 30, 2012 - $21,473; December 31, 2011 - $19,018)	22,672	20,913
Accrued interest receivable	12,881	13,439
Deferred tax assets, net	63,497	72,604
Customers' liabilities on acceptances	10,373	10,515
Bank owned life insurance	43,416	42,514
Investments in affordable housing partnerships	13,776	15,367
Goodwill	89,882	90,473
Other intangible assets, net	3,335	4,276
Prepaid FDIC insurance	8,212	9,720
FDIC loss share receivable	7,325	10,819
Other Assets	50,247	40,656
Total assets	5,331,979	5,166,604
LIABILITIES:
Non-interest bearing	1,105,161	984,350
Interest bearing [Abstract]
Money market and NOW accounts	1,145,304	1,237,378
Savings deposits	185,709	198,063
Time Deposits, $100,000 or More	892,941	759,923
Other time deposits	723,409	761,178
Total deposits	4,052,524	3,940,892
Federal Home Loan Bank borrowings	460,815	344,402
Subordinated debentures	41,809	52,102
Accrued interest payable	5,451	6,519
Acceptances outstanding	10,373	10,515
Other liabilities	26,552	16,235
Total liabilities	4,597,524	4,370,665
STOCKHOLDERS' EQUITY:
Common stock, $0.001 par value; authorized, 150,000,000 shares at September 30, 2012 and December 31, 2011; issued and outstanding, 78,016,260 and 77,984,252 shares at September 30, 2012 and December 31, 2011, respectively	78	78
Additional paid-in capital	524,608	524,644
Retained earnings	198,964	142,909
Accumulated other comprehensive income, net	10,805	8,958
Total stockholders' equity	734,455	795,939
Total liabilities and stockholders' equity	5,331,979	5,166,604
Series A, Fixed Rate Cumulative Perpetual Preferred Stock, issued and outstanding 67,000 shares at December 31, 2011, net, with a liquidation preference of $67,428,000 at December 31, 2011
STOCKHOLDERS' EQUITY:
Preferred stock, $0.001 par value - authorized 10,000,000 undesignated shares; issued and outstanding 122,000 shares as of December 31, 2011	0	65,158
Series B, Fixed Rate Cumulative Perpetual Preferred Stock, issued and outstanding 55,000 shares at December 31, 2011, net, with a liquidation preference of $55,229,000 at December 31, 2011
STOCKHOLDERS' EQUITY:
Preferred stock, $0.001 par value - authorized 10,000,000 undesignated shares; issued and outstanding 122,000 shares as of December 31, 2011	$ 0	$ 54,192

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Loans Receivable and Allowance for Loan Losses - Schedule of Accounts, Notes, Loans and Financing Receivable (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012 segment	Jun. 30, 2012	Dec. 31, 2011
Real estate loans:
Loans	$ 4,071,570		$ 3,741,570
Less: deferred loan fees	(2,076)		(2,744)
Gross loans receivable	4,069,494		3,738,826
Less: allowance for loan losses	(65,952)	(65,505)	(61,952)
Loans receivable, net	4,003,542		3,676,874
Number Of Portfolio Segments	4
Real estate loans
Real estate loans:
Loans	2,940,866		2,678,679
Real estate loans | Residential
Real estate loans:
Loans	3,354		2,043
Real estate loans | Commercial & industrial
Real estate loans:
Loans	2,881,079		2,631,880
Real estate loans | Construction
Real estate loans:
Loans	56,433		44,756
Commercial business
Real estate loans:
Loans	898,977		849,576
Less: allowance for loan losses	(17,647)		(20,681)
Trade Finance
Real estate loans:
Loans	177,285		146,684
Less: allowance for loan losses	(2,852)		(1,786)
Consumer and other
Real estate loans:
Loans	54,442		66,631
Less: allowance for loan losses	$ (785)		$ (445)

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Consolidated Statements Of Changes In Stockholders' Equity (USD $) In Thousands, except Share data, unless otherwise specified	Total	Preferred Stock	Common Stock	Additional paid-in capital	Retained Earnings	Accumulated Other Comprehensive Income (loss), net
Balance at Dec. 31, 2010		$ 64,203	$ 38	$ 171,364	$ 120,361	$ 2,597
Balance, shares at Dec. 31, 2010			37,983,027
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of additional shares pursuant to various stock plans, shares			112,233
Issuance of additional shares pursuant to various stock plans				510
Tax effects of stock plans				139
Stock-based compensation				52
Redemption of common stock warrant	0
Preferred stock cash dividends accrued (5%)					(2,512)
Accretion of preferred stock discount		715			(715)
Comprehensive income:
Net income	22,879				22,879
Other comprehensive income (loss):
Change in unrealized gain on securities available for sale, net of tax						3,999
Change in unrealized gain on interest-only strips, net of tax						5
Change in unrealized gain (loss) on interest-rate caps, net of tax						(20)
Balance at Sep. 30, 2011		64,918	38	172,065	140,013	6,581
Balance, shares at Sep. 30, 2011			38,095,260
Balance at Dec. 31, 2011	795,939	119,350	78	524,644	142,909	8,958
Balance, shares at Dec. 31, 2011			77,984,252
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Redemption of 122,000 shares of TARP preferred stock		(122,000)
Issuance of additional shares pursuant to various stock plans, shares			32,008
Issuance of additional shares pursuant to various stock plans				200
Tax effects of stock plans				(6)
Stock-based compensation				1,959
Redemption of common stock warrant	2,189			(2,189)
Preferred stock cash dividends accrued (5%)					(2,991)
Accretion of preferred stock discount		2,650			(2,650)
Comprehensive income:
Net income	61,696				61,696
Other comprehensive income (loss):
Change in unrealized gain on securities available for sale, net of tax						1,840
Change in unrealized gain on interest-only strips, net of tax						27
Change in unrealized gain (loss) on interest-rate caps, net of tax						(20)
Balance at Sep. 30, 2012	$ 734,455	$ 0	$ 78	$ 524,608	$ 198,964	$ 10,805
Balance, shares at Sep. 30, 2012			78,016,260

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Derivative Financial Instruments and Hedging Activities (Details) (Interest rate cap, USD $)	3 Months Ended		9 Months Ended	12 Months Ended	3 Months Ended				9 Months Ended
	Sep. 30, 2012	Mar. 31, 2010	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2012 Other income		Sep. 30, 2011 Other income		Sep. 30, 2012 Other income		Sep. 30, 2011 Other income
Derivative [Line Items]
Cap interest rate		2.00%
Cost of hedge		$ 890,000
Notional amounts	50,000,000	50,000,000	50,000,000	50,000,000
Weighted average maturity			4 months 27 days	1 year 1 month 28 days
Fair value of combined interest rate caps	0		0	9,000
Derivative Instruments Not Designated as Hedging Instruments, Loss	$ 0		$ (9,000)		$ 0	[1]	$ (14,000)	[1]	$ (9,000)	[1]	$ (153,000)	[1]

[1] Includes amounts representing the net interest payments as stated in the contractual agreements and the valuation gains or (losses) on interest rate contracts not designated as hedging instruments.

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Center Merger - Schedule of Goodwill (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Goodwill [Roll Forward]
Beginning of period	$ 89,882	$ 2,509	$ 90,473	$ 2,509
Adjustment	0	0	(591)	0
Impairment	0	0	0	0
End of period	$ 89,882	$ 2,509	$ 89,882	$ 2,509

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Stockholders' Equity and Regulatory Matters - Stockholders’ Equity and Regulatory Matters (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Company
Total capital (to risk-weighted assets), Amount
Total Capital, Actual	$ 723,954	$ 784,054
Total Capital, Required For Capital Adequacy Purposes	351,432	323,144
Tier I capital (to risk-weighted assets), Amount
Tier I Capital, Actual (Risk Based)	668,710	733,319
Tier I Capital, Required For Capital Adequacy Purposes	175,716	161,572
Tier I capital (to average assets), Amount
Tier I Capital, Actual (Leverage)	668,710	733,319
Tier I Capital, Required For Capital Adequacy Purposes	203,354	148,044
Total capital and Tier I capital (to risk-weighted assets), Ratio
Total Capital (to Risk Weighted Assets), Actual	16.50%	19.40%
Total Capital (to Risk Weighted Assets), Minimum For Capital Adequacy Purposes	8.00%	8.00%
Tier I Capital (to Risk Weighted Assets), Actual (Risk Based)	15.20%	18.20%
Tier I Capital (to Risk Weighted Assets), Minimum For Capital Adequacy Purposes (Risk Based)	4.00%	4.00%
Tier I capital (to average assets), Ratio
Tier I Capital (to Average Assets), Actual (Leverage)	13.20%	19.80%
TIer I Capital (to Average Assets), Minimum For Capital Adequacy Purposes (Leverage)	4.00%	4.00%
Bank
Total capital (to risk-weighted assets), Amount
Total Capital, Actual	702,825	721,551
Total Capital, Required For Capital Adequacy Purposes	351,209	322,891
Required To Be Well Capitalized under Prompt Corrective Action Provisions	439,011	403,613
Tier I capital (to risk-weighted assets), Amount
Tier I Capital, Actual (Risk Based)	647,616	670,855
Tier I Capital, Required For Capital Adequacy Purposes	175,604	161,445
Tier I Capital, Minimum to be Well Capitalized Under Prompt Corrective Action Provisions (Risk Based)	263,407	242,168
Tier I capital (to average assets), Amount
Tier I Capital, Actual (Leverage)	647,616	670,855
Tier I Capital, Required For Capital Adequacy Purposes	203,307	148,038
Tier I Capital, Minimum to be Well Capitalized Under Prompt Corrective Action Provisions (Leverage)	$ 254,134	$ 185,048
Total capital and Tier I capital (to risk-weighted assets), Ratio
Total Capital (to Risk Weighted Assets), Actual	16.00%	17.90%
Total Capital (to Risk Weighted Assets), Minimum For Capital Adequacy Purposes	8.00%	8.00%
Total Capital (to Risk Weighted Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions	10.00%	10.00%
Tier I Capital (to Risk Weighted Assets), Actual (Risk Based)	14.80%	16.60%
Tier I Capital (to Risk Weighted Assets), Minimum For Capital Adequacy Purposes (Risk Based)	4.00%	4.00%
Tier I Capital (to Risk Weighted Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions (Risk Based)	6.00%	6.00%
Tier I capital (to average assets), Ratio
Tier I Capital (to Average Assets), Actual (Leverage)	12.70%	18.10%
TIer I Capital (to Average Assets), Minimum For Capital Adequacy Purposes (Leverage)	4.00%	4.00%
Tier I Capital (to Average Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions (Leverage)	5.00%	5.00%

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Subsequent Event

9 Months Ended

Sep. 30, 2012

Subsequent Event [Abstract]

Subsequent Events

Subsequent Event

On October 22, 2012, the Company announced that it has signed a definitive agreement under which Pacific International Bancorp, a Seattle-based company, will merge with the Company. Pacific International has total assets of approximately $200 million, and its primary subsidiary, Pacific International Bank, a Washington state-chartered bank, has four bank locations in the Seattle metropolitan area. Upon completion of the transaction, which is expected to close during first quarter 2013, the Company will have six branches in the Seattle area.

Under the terms of the merger agreement, the stock-for-stock transaction is valued at approximately $8.2 million, valuing each outstanding share of Pacific International common stock at $1.75. As part of the transaction, Pacific International’s $6.5 million in Series A Preferred Stock issued under the U.S. Treasury’s TARP Capital Purchase Program will be retired.

The transaction is subject to regulatory approval, the approval of the shareholders of Pacific International, and other customary closing conditions.

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Stock-Based Compensation - Plan Description (Details)	9 Months Ended
	Sep. 30, 2012	Nov. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)	2,630,050
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase price of common stock, percent (in hundredths)	100.00%
Restricted stock, performance shares and performance units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock, restriction period	1 year
Time based vesting of grants | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock, restriction period	3 years
BBCN 2007 Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase price of common stock, percent (in hundredths)	100.00%
BBCN 2007 Plan | Stock options and stock appreciation rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term	10 years
BBCN 2007 Plan | Stock options and stock appreciation rights | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period minimum	3 years
BBCN 2007 Plan | Stock options and stock appreciation rights | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period minimum	5 years
Center Financial Corporation
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Conversion factor of outstanding share awards and shares available for future grants		0.7805
Center Financial Corporation | 2006 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding options (in shares)		585,860
Number of shares available for grant (in shares)		2,443,513
Conversion factor of outstanding share awards and shares available for future grants		0.7805
Annual vesting percent	20.00%
Center Financial Corporation | 2006 Plan | Nonemployee director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting percent	33.33333%
Option expiration duration	10 years

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Center Merger (Tables)

9 Months Ended

Sep. 30, 2012

Business Combinations [Abstract]

Change in Goodwill

The change in goodwill during the three and nine months ended September 30, 2012 and 2011 is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012			2011
	(In thousands)
Beginning of period	$	89,882	$	2,509	$	90,473		$	2,509
Adjustment	0		0		(591		)	0
Impairment	0		0		0			0
End of period	$	89,882	$	2,509	$	89,882		$	2,509

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Consolidated Statements Of Changes In Stockholders' Equity (Parenthetical)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Preferred Stock
Stock Redeemed or Called During Period, Shares	122,000
Retained Earnings
Cash dividends accrued	5.00%	5.00%

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Condensed Consolidated Statements Of Financial Condition (Parenthetical) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Loans receivable, allowance	$ 65,952,000	$ 61,952,000
Premises and equipment, accumulated depreciation and amortization	21,473,000	19,018,000
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	122,000	122,000
Preferred stock, shares outstanding	122,000	122,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	78,016,260	77,984,252
Common stock, shares outstanding	78,016,260	77,984,252
Series A, Fixed Rate Cumulative Perpetual Preferred Stock, issued and outstanding 67,000 shares at December 31, 2011, net, with a liquidation preference of $67,428,000 at December 31, 2011
Preferred stock, shares issued	67,000	67,000
Preferred stock, shares outstanding	67,000	67,000
Preferred stock, liquidation preference	67,428,000	67,428,000
Series B, Fixed Rate Cumulative Perpetual Preferred Stock, issued and outstanding 55,000 shares at December 31, 2011, net, with a liquidation preference of $55,229,000 at December 31, 2011
Preferred stock, shares issued	55,000	55,000
Preferred stock, shares outstanding	55,000	55,000
Preferred stock, liquidation preference	$ 55,229,000	$ 55,229,000

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Subordinated Debentures

9 Months Ended

Sep. 30, 2012

Subordinated Borrowings [Abstract]

Subordinated Debentures

Subordinated Debentures

At September 30, 2012, 4 wholly-owned subsidiary grantor trusts established by former Nara Bancorp had issued $28 million of pooled Trust Preferred Securities (“trust preferred securities”) and 1 wholly-owned subsidiary grantor trust established by former Center Financial Corporation had issued $18 million of trust preferred securities. Trust preferred securities accrue and pay distributions periodically at specified annual rates as provided in the indentures. The trusts used the net proceeds from the offering to purchase a like amount of subordinated debentures (the “Debentures”) of BBCN Bancorp. The Debentures are the sole assets of the trusts. BBCN Bancorp’s obligations under the subordinated debentures and related documents, taken together, constitute a full and unconditional guarantee by BBCN Bancorp of the obligations of the trusts. The trust preferred securities are mandatorily redeemable upon the maturity of the Debentures, or upon earlier redemption as provided in the indentures. BBCN Bancorp has the right to redeem the Debentures in whole (but not in part) on or after specific dates, at a redemption price specified in the indentures plus any accrued but unpaid interest to the redemption date. BBCN Bancorp also has a right to defer consecutive payments of interest on the debentures for up to five years.

The following table is a summary of trust preferred securities and debentures at September 30, 2012:

Issuance Trust	Issuance Date	Trust Preferred Security Amount		Subordinated Debentures Amount		Rate Type	Initial Rate		Coupon Rate at September 30, 2012			Maturity Date
		(Dollars in thousands)
Nara Capital Trust III	6/5/2003	$	5,000	$	5,155	Variable	4.44	%	3.54	%		6/15/2033
Nara Statutory Trust IV	12/22/2003	5,000		5,155		Variable	4.02	%	3.31	%		1/7/2034
Nara Statutory Trust V	12/17/2003	10,000		10,310		Variable	4.12	%	3.34	%		12/17/2033
Nara Statutory Trust VI	3/22/2007	8,000		8,248		Variable	7.00	%	2.04	%		6/15/2037
Center Capital Trust I	12/30/2003	18,000		12,941		Variable	4.01	%	3.31	%	*	1/7/2034
TOTAL ISSUANCE		$	46,000	$	41,809

* The Center Capital Trust I trust preferred security was assumed in the Merger. The remaining discount was $5.6 million at September 30, 2012 and the effective rate of the security, including the effect of the discount accretion, was 6.03% at September 30, 2012.

The Company’s investment in the common trust securities of the issuer trusts of $1.4 million and $2.0 million at September 30, 2012 and December 31, 2011, respectively, is included in other assets. Although the subordinated debt issued by the trusts are not included as a component of stockholders' equity in the consolidated balance sheets, the debt is treated as capital for regulatory purposes. The trust preferred security debt issuances are includable in Tier I capital up to a maximum of 25% of capital on an aggregate basis. Any amount that exceeds 25% qualifies as Tier 2 capital. At September 30, 2012, all of the $46 million of the trusts’ securities qualified as Tier 1 capital. In July 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) was signed into law which, among other things, limits the ability of bank holding companies with total assets of more than $15 billion to treat trust preferred security debt issuances as Tier 1 capital. Since the Company had less than $15 billion in assets at September 30, 2012, we will be able to continue to include its existing trust preferred securities in Tier 1 capital under the Dodd-Frank Act.

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Document And Entity Information	9 Months Ended
	Sep. 30, 2012	Oct. 31, 2012
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Entity Registrant Name	BBCN BANCORP INC
Entity Central Index Key	0001128361
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		78,041,511

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Derivative Financial Instruments and Hedging Activities

9 Months Ended

Sep. 30, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments and Hedging Activities

Derivative Financial Instruments and Hedging Activities

As part of our asset and liability management strategy, the Company may enter into derivative financial instruments, such as interest rate swaps, caps and floors, with the overall goal of minimizing the impact of interest rate fluctuations on our net interest margin. Interest rate swaps and caps involve the exchange of fixed-rate and variable-rate interest payment obligations without the exchange of the underlying notional amounts.

During the first quarter of 2010, the Company entered into a three-year interest rate cap agreement with an aggregate notional amount of $50.0 million. Under this cap agreement, the Company receives quarterly payments from the counterparty when the quarterly resetting 3 Month London-Interbank Offered Rate exceeds the strike level of 2.00%. The upfront fee paid to the counterparty in entering into this interest rate cap agreement was $890 thousand.

These interest rate cap agreements are considered “free-standing” due to non-designation of a hedge relationship to any of its financial assets or liabilities. Under FASB ASC 815, valuation gains or losses on interest rate caps not designated as hedging instruments are recognized in earnings. At September 30, 2012, the aggregate fair value of the outstanding interest rate caps was $0, and we recognized mark-to-market losses on valuation of $0 and $9 thousandfor the three and nine months endedSeptember 30, 2012.

At September 30, 2012 and December 31, 2011, summary information about these interest-rate caps is as follows:

	September 30, 2012			December 31, 2011
Notional amounts	$	50	million	$	50	million
Weighted average pay rates	N/A			N/A
Weighted average receive rates	N/A			N/A
Weighted average maturity	0.41 years			1.16 years
Fair value of combined interest rate caps	$	0		$	9	thousand

The effect of derivative instruments on the Consolidated Statement of Income for the three and nine months endedSeptember 30, 2012 and 2011 are as follows:

		Three Months Ended September 30,					Nine Months Ended September 30,
		2012		2011			2012			2011
	Location of Gain or (Loss) Recognized in Income on Derivatives	Amount of Gain or (Loss) Recognized in Income on Derivatives					Amount of Gain or (Loss) Recognized in Income on Derivatives
		(In thousands)
Derivatives not designated as hedging instruments under FASB ASC 815:
Interest rate contracts (1)	Other income	$	—	$	(14	)	$	(9	)	$	(153	)

(1) Includes amounts representing the net interest payments as stated in the contractual agreements and the valuation gains or (losses) on interest rate contracts not designated as hedging instruments.

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Condensed Consolidated Statements Of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
INTEREST INCOME:
Interest and fees on loans	$ 61,553	$ 34,902	$ 187,476	$ 101,137
Interest on securities	3,782	3,843	12,940	11,738
Interest on federal funds sold and other investments	120	182	537	540
Total interest income	65,455	38,927	200,953	113,415
INTEREST EXPENSE:
Interest on deposits	5,214	4,977	15,862	15,198
Interest on FHLB advances	1,603	2,438	4,832	7,422
Interest on other borrowings	407	459	1,667	1,528
Total interest expense	7,224	7,874	22,361	24,148
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES	58,231	31,053	178,592	89,267
PROVISION FOR LOAN LOSSES	6,900	3,483	16,682	18,792
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	51,331	27,570	161,910	70,475
NON-INTEREST INCOME:
Service fees on deposit accounts	3,121	1,352	9,550	4,262
International service fees	1,183	603	3,810	1,842
Loan servicing fees, net	1,031	464	3,178	1,345
Wire transfer fees	833	343	2,349	1,013
Other income and fees	1,364	534	4,058	1,598
Net gains on sales of SBA loans	0	823	5,426	6,337
Net gains (losses) on sales of other loans	0	(30)	146	(30)
Net gains on sales and calls of securities available for sale	133	64	949	70
Net valuation gains (losses) on interest rate swaps	11	(3)	24	(120)
Net gains (losses) on sales of OREO	(12)	108	41	135
Total non-interest income	7,664	4,258	29,531	16,452
NON-INTEREST EXPENSE:
Salaries and employee benefits	13,611	7,657	42,348	22,436
Occupancy	3,910	2,480	11,788	7,362
Furniture and equipment	1,495	984	4,181	2,853
Advertising and marketing	1,159	354	4,142	1,527
Data processing and communications	1,659	813	4,843	2,719
Professional fees	876	612	2,558	2,090
FDIC assessments	644	983	1,732	3,149
Credit related expenses	2,497	867	6,967	2,615
Merger and integration expense	183	574	3,304	1,465
Other	2,736	1,493	8,419	4,182
Total non-interest expense	28,770	16,817	90,282	50,398
INCOME BEFORE INCOME TAX PROVISION	30,225	15,011	101,159	36,529
INCOME TAX PROVISION	11,827	5,196	39,463	13,650
NET INCOME	18,398	9,815	61,696	22,879
DIVIDENDS AND DISCOUNT ACCRETION ON PREFERRED STOCK	0	(1,077)	(5,640)	(3,227)
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$ 18,398	$ 8,738	$ 56,056	$ 19,652
EARNINGS PER COMMON SHARE
Basic (in dollars per share)	$ 0.24	$ 0.23	$ 0.72	$ 0.52
Diluted (in dollars per share)	$ 0.24	$ 0.23	$ 0.72	$ 0.52

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Company has a stock-based incentive plan, the 2007 BBCN Bancorp Equity Incentive Plan (“2007 Plan”). The 2007 Plan, approved by our stockholders on May 31, 2007, was amended and restated on July 25, 2007 and again on December 1, 2011. The 2007 Plan provides for grants of stock options, stock appreciation rights (“SARs”), restricted stock, performance shares and performance units (sometimes referred to individually or collectively as “awards”) to non-employee directors, officers, employees and consultants of the Company. Stock options may be either “incentive stock options” (“ISOs”), as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), or nonqualified stock options (“NQSOs”).

The 2007 Plan gives the Company flexibility to (i) attract and retain qualified non-employee directors, executives and other key employees and consultants with appropriate equity-based awards, (ii) motivate high levels of performance, (iii) recognize employee contributions to the Company’s success, and (iv) align the interests of Plan participants with those of the Company’s stockholders. The exercise price for shares under an ISO may not be less than 100% of fair market value (“FMV”) on the date the award is granted under Code Section 422. Similarly, under the terms of the 2007 Plan the exercise price for SARs and NQSOs may not be less than 100% of FMV on the date of grant. Performance units are awarded to a participant at the market price of the Company’s common stock on the date of award (after the lapse of the restriction period and the attainment of the performance criteria). No minimum exercise price is prescribed for performance shares and restricted stock awarded under the 2007 Plan.

ISOs, SARs and NQSOs have vesting periods of three to five years and have 10-year contractual terms. Restricted stock, performance shares, and performance units will be granted with a restriction period of not less than one year from the grant date for performance-based awards and not more than three years from the grant date for time-based vesting of grants. Compensation expense for awards is recorded over the vesting period.

Concurrently with the merger, Center's stock-based incentive plan, the Center Financial Corporation 2006 Stock Incentive Plan, adopted April 12, 2006, as amended and restated June 13, 2007 ("2006 Plan"), was assumed by BBCN, with the outstanding share awards of 585,860 shares and the 2,443,513 shares available for future grants at November 30, 2011 being converted at an exchange ratio of 0.7805.

The 2006 Plan provides for the granting of incentive stock options to officers and employees, and non-qualified stock options and restricted stock awards to employees (including officers) and non-employee directors. The option prices of all options granted under the 2006 Plan must be not less than 100% of the fair market value at the date of grant. All options granted generally vest at the rate of 20% per year except that the options granted to the non-employee directors vest at the rate of 33% per year. All options not exercised generally expire ten years after the date of grant.

Under the 2007 and 2006 plans 2,630,050 shares were available for future grants as of September 30, 2012.

The total shares reserved for issuance will serve as the underlying value for all equity awards under the 2007 Plan and the 2006 Plan. With the exception of the shares underlying stock options and restricted stock awards, the board of directors may choose to settle the awards by paying the equivalent cash value or by delivering the appropriate number of shares.

The following is a summary of stock option activity under the 2007 and 2006 Plans for the nine months ended September 30,2012:

	Number of Shares		Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding - January 1, 2012	830,011		$	16.35
Granted	0		0
Exercised	(28,639	)	7.11
Forfeited	0		0
Outstanding - September 30, 2012	801,372		$	16.68	5.68	$	992,000
Options exercisable - September 30, 2012	798,484		$	16.68	5.67	$	992,000
Unvested options expected to vest after September 30, 2012	2,888		$	15.95	9.17	$	0

The following is a summary of restricted and performance unit activity under the 2007 and 2006 Plans for the nine months ended September 30,2012:

	Number of Shares		Weighted- Average Grant Date Fair Value		Weighted- Average Remaining Contractual Life (Years)
Outstanding - January 1, 2012	52,480		$	7.42
Granted	502,710		10.45
Vested	(9,401	)	6.69
Forfeited	(4,599	)	7.46
Outstanding - September 30, 2012	541,190		$	10.31	9.31

The total fair value of performance units vested for the nine months ended September 30, 2012 and 2011 was $100 thousand and $56 thousand, respectively.

The amount charged against income, before income tax benefit of $328 thousand and $5 thousand, in relation to the stock-based payment arrangements, was $818 thousand and $13 thousand for the three months ended September 30, 2012 and 2011, respectively. The amount charged against income, before income tax benefit of $805 thousand and $21 thousand, in relation to the stock-based payment arrangements, was $2.0 million and $52 thousand for the nine months ended September 30, 2012 and 2011, respectively. At September 30, 2012, unrecognized compensation expense related to non-vested stock option grants and restricted and performance units aggregated $3.6 million, and is expected to be recognized over a remaining weighted average vesting period of 1.68 years.

The estimated annual stock-based compensation expense as of September 30, 2012 for each of the succeeding years is indicated in the table below:

	Stock Based Compensation Expense
	(In thousands)
Remainder of 2012	$	751
For the year ended December 31:
2013	1,412
2014	659
2015	639
2016	101
2017	7
Total	$	3,569

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Center Merger

9 Months Ended

Sep. 30, 2012

Business Combinations [Abstract]

Center Merger

Center Merger

On November 30, 2011, the merger of Center and Nara (the "Merger") was completed. Pursuant to the merger agreement, holders of Center common stock received 0.7805 shares of BBCN common stock for each share of Center common stock held immediately prior to the effective time of the merger. The total Company shares issued to each Center shareholder was rounded down to the nearest whole share and cash was paid for any remaining fractional shares. Approximately 31.2 million shares of Company common stock, with a Merger date fair value of $292 million, were issued to Center shareholders. Outstanding Center stock options and restricted stock awards were converted into stock options with respect to shares of BBCN common stock or shares of BBCN common stock, respectively, with appropriate adjustments to reflect the share exchange ratio.

The Merger was accounted for by BBCN using the acquisition method of accounting under ASC 805, Business Combinations. Accordingly, the assets and liabilities of Center were recorded at their respective fair values and represent management's estimates based on available information. Through the Merger we acquired Center Bank's 21 full-service branch offices, two loan production offices, $326 million in cash, loans with a fair value of $1.4 billion, deposits with a fair value of $1.8 billion and borrowings with a fair value of $149 million. Goodwill of approximately $88 million was initially recorded in conjunction with the transaction. The goodwill related to the Merger represents the future economic benefit arising from the acquisition of Center Financial. The future economic benefits include the creation of a platform that can support future operations; strengthening our existing presence in Southern California; expanding our national presence through the addition of offices in Chicago, Seattle and Northern California; and future cost synergies. The results of Center's operations are included in our Consolidated Statements of Income subsequent to the date of the Merger.

The change in goodwill during the three and nine months ended September 30, 2012 and 2011 is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012			2011
	(In thousands)
Beginning of period	$	89,882	$	2,509	$	90,473		$	2,509
Adjustment	0		0		(591		)	0
Impairment	0		0		0			0
End of period	$	89,882	$	2,509	$	89,882		$	2,509

The goodwill arising from the Merger was reduced by a net $591 thousand to $87.4 million due to adjustments of certain acquisition date fair value asset and liability estimates during first quarter 2012.  Estimates made in the acquisition date accounting are subject to revisions during the subsequent one-year measurement period.  Due to the immateriality of the revision amount, the Company elected not to retrospectively adjust the acquisition date accounting and instead recorded the adjustments in first quarter 2012. Goodwill is not amortized for book purposes and is not deductible for tax purposes.

Direct costs related to the Merger were expensed as incurred. During the three months ended September 30, 2012, we incurred $183 thousand in merger and integration expenses, including $33 thousand in salaries and benefits and $150 thousand in professional fees. During the three months ended September 30, 2011, we incurred $574 thousand in merger and integration expenses. During the nine months ended September 30, 2012, we incurred $3.3 million in merger and integration expenses, including $1.1 million in salaries and benefits and $2.2 million in professional fees. During the nine months ended September 30, 2011, we incurred $1.5 million in merger and integration expenses.

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Basis of Presentation Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2012

Basis Of Presentation [Abstract]

Consolidation

The condensed consolidated financial statements include the accounts of BBCN Bancorp and its wholly-owned subsidiaries, principally BBCN Bank. All intercompany transactions and balances have been eliminated in consolidation.

We believe that we have made all adjustments, consisting solely of normal recurring accruals, necessary to fairly present our financial position at September 30, 2012 and the results of our operations for the three and nine months then ended. Certain reclassifications have been made to prior period amounts to conform to the current year presentation.

New accounting pronouncements

Recent Accounting Pronouncements:

FASB ASC 350 – In September 2011, the FASB issued an update (ASU No. 2011-08, Testing Goodwill for Impairment) impacting FASB ASC 350-20, Intangibles – Goodwill and Other. The amendments in this update permit an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than the carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The more likely than not threshold is defined as having a likelihood of more than 50 percent. If after assessing the totality of events or circumstances, it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. If an entity concludes that it is more likely than not that the fair value of the reporting unit is less than the carrying amount, the entity is required to perform the first step of the two-step impairment. If the carrying amount of a reporting unit exceeds its fair value, then the entity is required to perform the second step of the goodwill impairment test to measure the amount of the impairment loss. This update became effective for the Company for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The Company has performed an analysis under this approach and it did not have a material impact on the consolidated financial statements.

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FASB ASC 220 – In December 2011, the FASB issued an update (ASU No. 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05) impacting FASB ASC 220, Comprehensive Income. This update defers the requirement to present items that are reclassified from accumulated other comprehensive income to net income in both the statement where net income is presented and the statement where other comprehensive income is presented. An entity should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before ASU No. 2011-05. This update became effective for the Company for interim and annual reporting periods beginning after December 15, 2011 and did not have a material impact on the consolidated financial statements.

FASB ASC 805 – In October 2012, the FASB issued an update (ASU No. 2012-06, Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution) impacting FASB ASC 805, Business Combinations. This update specifies that when an entity recognizes an indemnification asset as a result of a government-assisted acquisition of a financial institution and subsequently a change in the cash flows expected to be collected on the indemnification asset occurs, the entity should subsequently account for the change in the measurement of the indemnification asset on the same basis as the change in the assets subject to indemnification. Any amortization of changes in value should be limited to the contractual term of the indemnification agreement (the lesser of the term of the indemnification agreement and the remaining life of the indemnified assets). This update becomes effective for interim and annual periods beginning on or after December 15, 2012, and is consistent with the Company’s current accounting treatment of changes in expected cash flows and the indemnification asset and will not have a material impact on the consolidated financial statements.

Income tax

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. In assessing the realization of deferred tax assets, management evaluates both positive and negative evidence, including the existence of any cumulative losses in the current year and the prior two years, the amount of taxes paid in available carry-back years, the forecasts of future income, applicable tax planning strategies, and assessments of current and future economic and business conditions. This analysis is updated quarterly and adjusted as necessary.

Fair value measurement

Securities Available for Sale

The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

Impaired Loans

The fair values of impaired loans are generally measured for impairment using the practical expedients permitted by FASB ASC 310-10-35 including impaired loans measured at an observable market price (if available), or at the fair value of the loan’s collateral (if the loan is collateral dependent). Fair value of the loan’s collateral, when the loan is dependent on collateral, is determined by appraisals or independent valuation, less costs to sell and result in a Level 2.

Derivatives

The fair value of our derivative financial instruments, including interest rate swaps and caps, is based on derivative valuation models using market data inputs as of the valuation date that can generally be verified and do not typically involve significant management judgments. (Level 2 inputs).

Other Real Estate Owned

Other real estate owned is fair valued at the time the loan is foreclosed upon and the asset is transferred to other real estate owned. The value is based primarily on third party appraisals, less costs to sell and result in a Level 2 classification of the inputs for determining fair value. Other real estate owned is reviewed and evaluated on at least an annual basis for additional impairment and adjusted to lower of cost or market accordingly, based on the same factors identified above.

Loans held for sale

Loans held for sale are carried at the lower of cost or fair value, as determined by outstanding commitments from investors, or based on recent comparable sales (Level 2 inputs), if available, and if not available, are based on discounted cash flows using current market rates applied to the estimated life and credit risk (Level 3 inputs) or may be assessed based upon the fair value of the collateral which is obtained from recent real estate appraisals (Level 3 inputs). These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in Level 3 classification of the inputs for determining fair value.

Assets and liabilities measured at fair value on a recurring basis are summarized below:

			Fair Value Measurements at the End of the Reporting Period Using
	September 30, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets:
Securities available for sale:
GSE collateralized mortgage obligations	$	235,669	$	0	$	235,669	$	0
GSE mortgage-backed securities	427,589		0		427,589		0
Trust preferred security	3,537		0		3,537		0
Municipal bonds	5,139		0		5,139		0
Mutual funds	15,125		15,125		0		0

There were no transfers between Level 1, 2 and 3 during the per

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Income Taxes Income Taxes

9 Months Ended

Sep. 30, 2012

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company and its subsidiaries are subject to U.S. federal income tax as well as state income taxes. The Company had total unrecognized tax benefits of $734 thousand at September 30, 2012 and $569 thousand at December 31, 2011 that relate primarily to uncertainties related to California enterprise zone loan interest deductions.

We anticipate an increase of approximately $220 thousand in the unrecognized tax benefit related to the California enterprise zone loan interest deduction within the next twelve months. The Company is subject to U.S. federal income taxes, California franchise taxes and various other state income and franchise taxes.

The statute of limitations related to the consolidated Federal income tax return is closed for all tax years up to and including 2008. The expiration of the statute of limitations related to the various state income and franchise tax returns varies by state. We were under examination by New York City for the 2007, 2008, and 2009 tax years. New York City tax authority recently closed the examination for the 2007, 2008 and 2009 tax years with an immaterial adjustment.

We recognize interest and penalties related to income tax matters in income tax expense. We had approximately $58 thousand and $77 thousand for interest and penalties accrued at September 30, 2012 and December 31, 2011, respectively.

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. In assessing the realization of deferred tax assets, management evaluates both positive and negative evidence, including the existence of any cumulative losses in the current year and the prior two years, the amount of taxes paid in available carry-back years, the forecasts of future income, applicable tax planning strategies, and assessments of current and future economic and business conditions. This analysis is updated quarterly and adjusted as necessary. Based on the analysis, the Company has determined that a valuation allowance for deferred tax assets was not required as of September 30, 2012.

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Loans Receivable and Allowance for Loan Losses

9 Months Ended

Sep. 30, 2012

Receivables [Abstract]

Loans Receivable and Allowance for Loan Losses

Loans Receivable and Allowance for Loan Losses

The following is a summary of loans receivable by major category:

	September 30, 2012			December 31, 2011
	(In thousands)
Loan portfolio composition
Real estate loans:
Residential	$	3,354		$	2,043
Commercial & industrial	2,881,079			2,631,880
Construction	56,433			44,756
Total real estate loans	2,940,866			2,678,679
Commercial business	898,977			849,576
Trade finance	177,285			146,684
Consumer and other	54,442			66,631
Total loans outstanding	4,071,570			3,741,570
Less: deferred loan fees	(2,076		)	(2,744		)
Gross loans receivable	4,069,494			3,738,826
Less: allowance for loan losses	(65,952		)	(61,952		)
Loans receivable, net	$	4,003,542		$	3,676,874

Our loan portfolio is made up of four segments: real estate loans, commercial business, trade finance and consumer and other. These segments are further segregated between loans accounted for under the amortized cost method (referred to as "Legacy Loans") and acquired loans that were originally recorded at fair value with no carryover of the related pre-acquisition allowance for loan losses (referred to as "Acquired Loans"). The loans acquired from Center are further segregated between Credit Impaired Loans (loans with credit deterioration at the time of the Merger and accounted for under ASC 310-30) and Performing Loans (loans that were pass graded at the time of the Merger).

The following table presents changes in the accretable discount on the acquired Credit Impaired Loans in the merger for the three and nine months ended September 30, 2012:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012			2011		2012			2011
	(In thousands)
Balance at beginning of period	$	22,966		$	0	$	31,999		$	0
Accretion	(3,415		)	0		(10,866		)	0
Changes in expected cash flows	516			0		(1,066		)	0
Balance at end of period	$	20,067		$	0	$	20,067		$	0

On the acquisition date, the amount by which the undiscounted expected cash flows exceed the estimated fair value of the acquired loans is the “accretable yield”. The accretable yield is then measured at each financial reporting date and represents the difference between the remaining undiscounted expected cash flows and the current carrying value of the loans. The accretable yield will change from period to period due to the followings: 1) estimates of the remaining life of acquired loans will affect the amount of future interest income, 2) indicies for variable rates of interest on acquired loans may change; and 3) estimates of the amount of the contractual principal and interest that will not be collected (nonaccretable difference) may change.

The activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2012 is as follows:

	Legacy												Acquired												Total
	Real Estate			Commercial Business			Trade Finance			Consumer and Other			Real Estate			Commercial Business			Trade Finance			Consumer and Other
	(In thousands)
Three Months Ended September 30, 2012
Balance, beginning of period	$	37,237		$	20,880		$	3,164		$	1,115		$	2,283		$	397		$	340		$	89		$	65,505
Provision (credit) for loan losses	5,499			988			(495		)	(418		)	750			784			(157		)	(51		)	6,900
Loans charged off	(1,832		)	(5,574		)	0			(2		)	(242		)	(118		)	0			(1		)	(7,769		)
Recoveries of charged offs	973			275			0			24			0			15			0			29			1,316
Balance, end of period	$	41,877		$	16,569		$	2,669		$	719		$	2,791		$	1,078		$	183		$	66		$	65,952
Nine Months Ended September 30, 2012
Balance, beginning of period	$	39,040		$	20,681		$	1,786		$	445		$	0		$	0		$	0		$	0		$	61,952
Provision (credit) for loan losses	6,831			3,203			823			700			2,899			1,701			483			42			16,682
Loans charged off	(6,095		)	(8,470		)	0			(485		)	(411		)	(755		)	(300		)	(244		)	(16,760		)
Recoveries of charged offs	2,101			1,155			60			59			303			132			0			268			4,078
Balance, end of period	$	41,877		$	16,569		$	2,669		$	719		$	2,791		$	1,078		$	183		$	66		$	65,952

The activity in the allowance for loan losses by portfolio segment for the three and nine months endedSeptember 30, 2011 is as follows:

	Legacy											Total
	Real Estate			Commercial Business			Trade Finance		Consumer and Other
	(In thousands)
Three Months Ended September 30, 2011
Balance, beginning of period	$	39,063		$	20,058		$	188	$	387		$	59,696
Provision (credit) for loan losses	(429		)	2,007			1,602		303			3,483
Loans charged off	(2,358		)	(1,479		)	0		(133		)	(3,970		)
Recoveries of charged offs	455			321			0		24			800
Balance, end of period	$	36,731		$	20,907		$	1,790	$	581		$	60,009
Nine Months Ended September 30, 2011
Balance, beginning of period	$	36,563		$	24,930		$	192	$	635		$	62,320
Provision (credit) for loan losses	17,161			62			1,598		(28		)	18,793
Loans charged off	(18,193		)	(6,022		)	0		(256		)	(24,471		)
Recoveries of charged offs	1,200			1,937			0		230			3,367
Balance, end of period	$	36,731		$	20,907		$	1,790	$	581		$	60,009

The following table disaggregates the allowance for loan losses and the loans receivables by impairment methodology at September 30, 2012 and December 31, 2011:

	September 30, 2012
	Legacy								Acquired								Total
	Real Estate		Commercial Business		Trade Finance		Consumer and Other		Real Estate		Commercial Business		Trade Finance		Consumer and Other
	(In thousands)
Allowance for loan losses:
Individually evaluated for impairment	$	4,510	$	2,529	$	82	$	0	$	678	$	905	$	0	$	0	$	8,704
Collectively evaluated for impairment	37,367		14,040		2,587		719		1		173		183		66		55,136
Loans acquired with credit deterioration	0		0		0		0		2,112		0		0		0		2,112
Total	$	41,877	$	16,569	$	2,669	$	719	$	2,791	$	1,078	$	183	$	66	$	65,952
Loans outstanding:
Individually evaluated for impairment	$	35,031	$	24,912	$	5,968	$	134	$	13,611	$	2,663	$	0	$	0	$	82,319
Collectively evaluated for impairment	2,152,581		689,949		161,907		28,014		635,692		133,098		9,102		23,197		3,833,540
Loans acquired with credit deterioration	0		0		0		0		103,951		48,355		308		3,097		155,711
Total	$	2,187,612	$	714,861	$	167,875	$	28,148	$	753,254	$	184,116	$	9,410	$	26,294	$	4,071,570

	December 31, 2011
	Legacy								Acquired								Total
	Real Estate		Commercial Business		Trade Finance		Consumer and Other		Real Estate		Commercial Business		Trade Finance		Consumer and Other
	(In thousands)
Allowance for loan losses:
Individually evaluated for impairment	$	10,525	$	7,168	$	342	$	0	$	0	$	0	$	0	$	0	$	18,035
Collectively evaluated for impairment	28,515		13,513		1,444		445		0		0		0		0		43,917
Loans acquired with credit deterioration	0		0		0		0		0		0		0		0		0
Total	$	39,040	$	20,681	$	1,786	$	445	$	0	$	0	$	0	$	0	$	61,952
Loans outstanding:
Individually evaluated for impairment	$	53,023	$	34,922	$	4,963	$	149	$	0	$	0	$	0	$	0	$	93,057
Collectively evaluated for impairment	1,744,740		529,195		100,658		13,963		780,152		223,928		40,110		48,700		3,481,446
Loans acquired with credit deterioration	0		0		0		0		100,764		61,531		953		3,819		167,067
Total	$	1,797,763	$	564,117	$	105,621	$	14,112	$	880,916	$	285,459	$	41,063	$	52,519	$	3,741,570

As of September 30, 2012 and December 31, 2011, we had a liability for unfunded commitments of $802 thousand and $686 thousand, respectively. For the three months ended September 30,2012 and 2011, we recognized provision for credit losses related to our unfunded commitments of $0 and $0. For the nine months ended September 30,2012 and 2011, we recognized provision for credit losses related to our unfunded commitments of $116 thousand and $0.

The recorded investment in individually impaired loans was as follows:

	September 30, 2012			December 31, 2011
	(In thousands)
With Allocated Allowance
Without charge-off	$	72,827		$	67,262
With charge-off	448			341
With No Allocated Allowance
Without charge-off	5,111			19,064
With charge-off	3,933			6,390
Allowance on Impaired Loans	(8,704		)	(18,035		)
Impaired Loans, net of allowance	$	73,615		$	75,022

The following tables detail impaired loans (Legacy and Acquired) as of September 30, 2012 and December 31, 2011 and for the three and nine months ended September 30, 2012 and for the year ended December 31, 2011. Loans with no related allowance for loan losses are believed by management to have adequate collateral securing their carrying value.

	As of September 30, 2012							For the nine months ended September 30, 2012				For the three months ended September 30, 2012
Total Impaired Loans	Recorded Investment*		Unpaid Contractual Principal Balance		Related Allowance			Average Recorded Investment*		Interest Income Recognized during Impairment		Average Recorded Investment*		Interest Income Recognized during Impairment
	(In thousands)
With Related Allowance:
Real Estate—Residential	$	0	$	0	$	0		$	0	$	0	$	0	$	0
Real Estate—Commercial
Retail	4,453		4,608		(585		)	3,021		124		3,872		39
Hotel & Motel	15,580		16,932		(2,457		)	19,673		327		19,349		106
Gas Station & Car Wash	1,688		1,726		(539		)	3,162		69		2,496		23
Mixed Use	1,837		1,914		(260		)	3,753		0		3,540		0
Industrial & Warehouse	2,248		2,332		(443		)	3,297		67		1,845		22
Other	15,249		17,293		(904		)	13,675		483		13,596		160
Real Estate—Construction	0		0		0			32		0		0		0
Commercial Business	26,191		28,873		(3,434		)	23,850		1,048		24,899		341
Trade Finance	5,968		6,417		(82		)	2,856		108		3,243		63
Consumer and Other	60		60		0			135		3		30		2
	$	73,274	$	80,155	$	(8,704	)	$	73,454	$	2,229	$	72,870	$	756
With No Related Allowance
Real Estate—Residential	$	0	$	0	$	0		$	0	$	0	$	0	$	0
Real Estate—Commercial
Retail	948		3,847		0			1,384		0		939		0
Hotel & Motel	333		2,338		0			154		0		308		0
Gas Station & Car Wash	2,649		5,593		0			1,382		0		2,158		0
Mixed Use	0		0		0			0		0		0		0
Industrial & Warehouse	376		2,814		0			3,644		0		3,125		0
Other	1,569		2,528		0			2,269		0		1,750		0
Real Estate—Construction	1,710		1,710		0			1,710		85		1,710		28
Commercial Business	1,384		3,818		0			9,442		15		5,818		5
Trade Finance	0		0		0			2,295		0		2,226		0
Consumer and Other	74		93		0			126		0		105		0
	$	9,043	$	22,741	$	0		$	22,406	$	100	$	18,139	$	33
Total	$	82,317	$	102,896	$	(8,704	)	$	95,860	$	2,329	$	91,009	$	789

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

	As of September 30, 2012							For the nine months ended September 30, 2012				For the three months ended September 30, 2012
Acquired Impaired Loans	Recorded Investment*		Unpaid Contractual Principal Balance		Related Allowance			Average Recorded Investment*		Interest Income Recognized during Impairment		Average Recorded Investment*		Interest Income Recognized during Impairment
	(In thousands)
With Related Allowance:
Real Estate—Residential	$	0	$	0	$	0		$	0	$	0	$	0	$	0
Real Estate—Commercial
Retail	2,144		2,186		(148		)	828		86		1,546		26
Hotel & Motel	6,051		7,375		(351		)	4,595		0		6,082		0
Gas Station & Car Wash	0		0		0			71		0		0		0
Mixed Use	0		0		0			0		0		0		0
Industrial & Warehouse	822		889		(57		)	206		27		411		9
Other	3,484		4,467		(123		)	880		216		1,742		72
Real Estate—Construction	0		0		0			0		0		0		0
Commercial Business	2,282		3,176		(905		)	837		69		1,413		21
Trade Finance	0		0		0			0		0		0		0
Consumer and Other	0		0		0			0		0		0		0
	$	14,783	$	18,093	$	(1,584	)	$	7,417	$	398	$	11,194	$	128
With No Related Allowance
Real Estate—Residential	$	0	$	0	$	0		$	0	$	0	$	0	$	0
Real Estate—Commercial
Retail	4		224		0			1		0		2		0
Hotel & Motel	0		0		0			0		0		0		0
Gas Station & Car Wash	272		1,872		0			162		0		237		0
Mixed Use	0		0		0			0		0		0		0
Industrial & Warehouse	0		0		0			1,709		0		1,839		0
Other	835		1,248		0			655		0		796		0
Real Estate—Construction	0		0		0			0		0		0		0
Commercial Business	381		515		0			521		15		769		5
Trade Finance	0		0		0			0		0		0		0
Consumer and Other	0		0		0			0		0		0		0
	$	1,492	$	3,859	$	0		$	3,048	$	15	$	3,643	$	5
Total	$	16,275	$	21,952	$	(1,584	)	$	10,465	$	413	$	14,837	$	133

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

The table above includes only Acquired Loans that became impaired.

	For the nine months ended September 30, 2011				For the three months ended September 30, 2011
	Average Recorded Investment*		Interest Income Recognized during Impairment		Average Recorded Investment*		Interest Income Recognized during Impairment
	(In thousands)
With Related Allowance:
Real Estate—Residential	$	0	$	0	$	0	$	0
Real Estate—Commercial
Retail	3,891		25		2,713		8
Hotel & Motel	13,866		764		17,448		246
Gas Station & Car Wash	2,964		71		2,591		24
Mixed Use	1,336		52		1,234		17
Industrial & Warehouse	4,967		231		4,163		77
Other	4,000		382		7,400		127
Real Estate—Construction	3,099		0		0		0
Commercial Business	23,808		327		22,188		115
Trade Finance	0		0		0		0
Consumer and Other	0		0		0		0
	$	57,931	$	1,852	$	57,737	$	614
With No Related Allowance
Real Estate—Residential	$	0	$	0	$	0	$	0
Real Estate—Commercial
Retail	5,742		0		3,838		0
Hotel & Motel	5,182		0		2,369		0
Gas Station & Car Wash	3,204		0		2,307		0
Mixed Use	2,606		0		1,861		0
Industrial & Warehouse	2,313		0		2,571		0
Other	12,629		40		8,878		13
Real Estate—Construction	3,673		84		3,421		28
Commercial Business	11,480		133		10,887		43
Trade Finance	831		0		1,076		0
Consumer and Other	144		0		154		0
	$	47,804	$	257	$	37,362	$	84
Total	$	105,735	$	2,109	$	95,099	$	698

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

	As of December 31, 2011							For the year ended December 31, 2011
	Recorded Investment*		Unpaid Contractual Principal Balance**		Related Allowance			Average Recorded Investment*		Interest Income Recognized during Impairment
	(In thousands)
With Related Allowance:
Real Estate—Residential	$	0	$	0	$	0		$	0	$	0
Real Estate—Commercial
Retail	1,810		2,686		(668		)	3,611		34
Hotel & Motel	17,441		17,459		(4,093		)	14,581		1,013
Gas Station & Car Wash	2,265		2,669		(550		)	2,824		95
Mixed Use	2,822		2,840		(128		)	1,705		158
Industrial & Warehouse	4,242		4,246		(407		)	4,822		310
Other	14,982		14,994		(4,630		)	6,300		298
Real Estate—Construction	128		128		(49		)	2,504		0
Commercial Business	19,416		20,248		(7,168		)	24,941		538
Trade Finance	4,497		4,497		(342		)	899		71
Consumer and Other	0		0		0			0		0
	$	67,603	$	69,767	$	(18,035	)	$	62,187	$	2,517
With No Related Allowance
Real Estate—Residential	$	0	$	0	$	0		$	0	$	0
Real Estate—Commercial
Retail	2,067		4,789		0			4,871		0
Hotel & Motel	0		0		0			4,146		0
Gas Station & Car Wash	287		2,851		0			2,621		0
Mixed Use	0		0		0			2,013		0
Industrial & Warehouse	2,662		8,346		0			2,383		0
Other	2,605		4,252		0			10,521		0
Real Estate—Construction	1,710		1,710		0			3,280		113
Commercial Business	15,506		16,905		0			10,274		203
Trade Finance	467		467		0			758		30
Consumer and Other	150		180		0			145		0
	$	25,454	$	39,500	$	0		$	41,012	$	346
Total	$	93,057	$	109,267	$	(18,035	)	$	103,199	$	2,863

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

** The table has been revised to present unpaid contractual principal balances, whereas the Company had previously disclosed unpaid contractual principal balances that were net of charge-offs, interest applied to principal and purchase discounts.

Generally, loans are placed on nonaccrual status if principal or interest payments become 90 days past due and/or management deems the collectibility of the principal and/or interest to be in question, as well as when required by regulatory requirements. Loans to a customer whose financial condition has deteriorated are considered for non-accrual status whether or not the loan is 90 days or more past due. Generally, payments received on non-accrual loans are recorded as principal reductions. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

The following tables present the aging of past due loans as of September 30, 2012 and December 31, 2011 by class of loans:

	As of September 30, 2012
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Non-accrual loans		Total Delinquent loans		Greater than 90 days and accruing
	(In thousands)
Legacy Loans
Real estate—Residential	$	29	$	0	$	0	$	29	$	0	$	29	$	0
Real estate—Commercial
Retail	1,670		0		0		1,670		2,291		3,961		0
Hotel & Motel	0		0		364		364		1,021		1,385		364
Gas Station & Car Wash	362		0		0		362		2,904		3,266		0
Mixed Use	0		0		0		0		1,837		1,837		0
Industrial & Warehouse	125		0		0		125		758		883		0
Other	0		263		0		263		6,150		6,413		0
Real estate—Construction	0		0		0		0		0		0		0
Commercial business	855		254		0		1,109		4,843		5,952		0
Trade finance	50		0		0		50		50		100		0
Consumer and other	17		0		0		17		74		91		0
Subtotal	$	3,108	$	517	$	364	$	3,989	$	19,928	$	23,917	$	364
Acquired Loans (1)
Real estate—Residential	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Real estate—Commercial
Retail	810		22		1,930		2,762		4		2,766		1,930
Hotel & Motel	0		1,549		938		2,487		6,051		8,538		938
Gas Station & Car Wash	232		0		3,134		3,366		272		3,638		3,134
Mixed Use	467		0		2,811		3,278		0		3,278		2,811
Industrial & Warehouse	18		119		0		137		0		137		0
Other	543		52		5,402		5,997		965		6,962		5,402
Real estate—Construction	0		0		6,305		6,305		0		6,305		6,305
Commercial business	1,592		676		1,147		3,415		1,315		4,730		1,147
Trade finance	0		0		0		0		0		0		0
Consumer and other	349		20		423		792		833		1,625		423
Subtotal	4,011		2,438		22,090		28,539		9,440		37,979		22,090
TOTAL	7,119		2,955		22,454		32,528		29,368		61,896		22,454

 (1) The acquired loans include Credit Impaired Loans (ASC 310-30 loans) and Performing Loans (loans that were pass graded at the time of the Merger).

	As of December 31, 2011
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Non-accrual loans		Total Delinquent loans		Greater than 90 days and accruing
	(In Thousands)
Legacy Loans
Real estate—Residential	$	36	$	0	$	0	$	36	$	0	$	36	$	0
Real estate—Commercial
Retail	428		0		0		428		2,615		3,043		0
Hotel & Motel	0		0		0		0		481		481		0
Gas Station & Car Wash	627		0		0		627		1,367		1,994		0
Mixed Use	0		0		0		0		820		820		0
Industrial & Warehouse	360		0		0		360		3,066		3,426		0
Other	0		119		0		119		10,992		11,111		0
Real estate—Construction	0		0		0		0		128		128		0
Commercial business	1,388		388		0		1,776		11,477		13,253		0
Trade finance	0		0		0		0		117		117		0
Consumer and other	3		0		0		3		150		153		0
Subtotal	2,842		507		0		3,349		31,213		34,562		0
Acquired Loans (1)
Real estate—Residential	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Real estate—Commercial
Retail	145		64		1,675		1,884		0		1,884		1,675
Hotel & Motel	0		45		0		45		0		45		0
Gas Station & Car Wash	2,536		175		820		3,531		0		3,531		820
Mixed Use	1,178		1,677		389		3,244		0		3,244		389
Industrial & Warehouse	3,372		0		110		3,482		0		3,482		110
Other	1,467		226		4,237		5,930		0		5,930		4,237
Real estate—Construction	0		4,499		0		4,499		0		4,499		0
Commercial business	1,739		1,383		9,132		12,254		0		12,254		9,132
Trade finance	0		0		202		202		0		202		202
Consumer and other	701		369		700		1,770		0		1,770		700
Subtotal	$	11,138	$	8,438	$	17,265	$	36,841	$	0	$	36,841	$	17,265
TOTAL	$	13,980	$	8,945	$	17,265	$	40,190	$	31,213	$	71,403	$	17,265

 (1) The acquired loans include Credit Impaired Loans (ASC 310-30 loans) and Performing Loans (loans that were pass graded at the time of the Merger).

We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt, including, but not limited to, current financial information, historical payment experience, credit documentation, public information, and current economic trends. We analyze loans individually by classifying the loans as to credit risk. This analysis includes all non-homogeneous loans. This analysis is performed at least on a quarterly basis. We use the following definitions for risk ratings:

• Pass: Loans that meet a preponderance or more of the Company's underwriting criteria and evidence an acceptable level of risk.

• Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

• Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

• Doubtful/Loss: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans assigned a risk rating of Special Mention or worse are referred to as Criticized Loans and loans assigned a risk rating of Substandard or worse are referred to as Classified Loans. As of September 30, 2012 and December 31, 2011, Criticized Loans by class of loans were as follows:

	As of September 30, 2012
	Special Mention		Substandard		Doubtful/Loss		Total
	(In thousands)
Legacy Loans:
Real estate—Residential	$	0	$	29	$	0	$	29
Real estate—Commercial
Retail	3,059		12,188		0		15,247
Hotel & Motel	3,692		16,565		0		20,257
Gas Station & Car Wash	1,658		9,399		0		11,057
Mixed Use	1,774		3,480		0		5,254
Industrial & Warehouse	4,036		2,943		382		7,361
Other	2,958		14,695		0		17,653
Real estate—Construction	0		1,710		0		1,710
Commercial business	7,638		23,924		215		31,777
Trade finance	7,893		5,968		0		13,861
Consumer and other	0		954		0		954
Subtotal	$	32,708	$	91,855	$	597	$	125,160
Acquired Loans:
Real estate—Residential	$	0	$	0	$	0	$	0
Real estate—Commercial
Retail	13,042		7,296		0		20,338
Hotel & Motel	17,726		13,287		0		31,013
Gas Station & Car Wash	6,301		5,894		0		12,195
Mixed Use	2,320		4,017		0		6,337
Industrial & Warehouse	1,370		6,109		0		7,479
Other	4,739		16,327		0		21,066
Real estate—Construction	0		7,383		0		7,383
Commercial business	15,728		31,078		188		46,994
Trade finance	303		6		0		309
Consumer and other	422		4,226		91		4,739
Subtotal	$	61,951	$	95,623	$	279	$	157,853
Total	$	94,659	$	187,478	$	876	$	283,013

	As of December 31, 2011
	Special Mention		Substandard		Doubtful/Loss		Total
	(In thousands)
Legacy Loans:
Real estate—Residential	$	0	$	36	$	0	$	36
Real estate—Commercial
Retail	3,434		13,468		0		16,902
Hotel & Motel	5,005		17,876		0		22,881
Gas Station & Car Wash	3,491		2,552		0		6,043
Mixed Use	2,281		3,019		0		5,300
Industrial & Warehouse	3,992		7,227		404		11,623
Other	5,904		15,500		0		21,404
Real estate—Construction	0		1,838		0		1,838
Commercial business	11,360		30,116		6,007		47,483
Trade finance	273		4,963		0		5,236
Consumer and other	0		1,079		0		1,079
Subtotal	$	35,740	$	97,674	$	6,411	$	139,825
Acquired Loans:
Real estate—Residential	$	0	$	0	$	0	$	0
Real estate—Commercial
Retail	11,562		11,286		0		22,848
Hotel & Motel	13,081		16,677		0		29,758
Gas Station & Car Wash	5,645		5,755		0		11,400
Mixed Use	3,500		2,823		0		6,323
Industrial & Warehouse	2,659		3,750		0		6,409
Other	6,673		12,579		0		19,252
Real estate—Construction	0		5,485		0		5,485
Commercial business	16,062		39,536		353		55,951
Trade finance	126		827		0		953
Consumer and other	1,658		2,518		0		4,176
Subtotal	$	60,966	$	101,236	$	353	$	162,555
Total	$	96,706	$	198,910	$	6,764	$	302,380

The following table presents loans sold from loans held for investment or transfered from held for investment to held for sale during the three and nine months ended September 30, 2012 and 2011 by portfolio segment:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Sales or reclassification to held for sale	(In thousands)
Real estate - Commercial	$	2,163	$	5,970	$	2,819	$	18,679
Real estate - Construction	0		0		0		4,600
Commercial Business	0		0		0		0
Total	$	2,163	$	5,970	$	2,819	$	23,279

The adequacy of the allowance for loan losses is determined by management based upon an evaluation and review of the credit quality of the loan portfolio, consideration of historical loan loss experience, relevant internal and external factors that affect the collection of a loan, and other pertinent factors.

The Migration Analysis is a formula methodology based on the Bank's actual historical net charge-off experience for each loan class (type) pool and risk grade. The migration analysis is centered on the Bank's internal credit risk rating system. Our internal loan review and external contracted credit review examinations are used to determine and validate loan risk grades. This credit review system takes into consideration factors such as: borrower's background and experience; historical and current financial condition; credit history and payment performance; economic conditions and their impact on various industries; type, fair value and volatility of the fair value of collateral; lien position; and the financial strength of any guarantors.

A general loan loss allowance is provided on loans not specifically identified as impaired (“non-impaired loans”). The Bank's general loan loss allowance has two components: quantitative and qualitative risk factors. The quantitative risk factors are based on a historical loss migration methodology. The loans are classified by class and risk grade and the historical loss migration is tracked for the various classes. Loss experience is quantified for the most recent 12 quarters and then weighted to place more significance to the most recent loss history. That loss experience is then applied to the stratified portfolio at each quarter end. For the Performing Loans acquired from Center, a general loan loss allowance is provided to the extent that there has been credit deterioration since the Merger. 

The quantitative general loan loss allowance was $20.7 million ($20.3 million for legacy loans and $0.4 million for acquired loans) at September 30, 2012, compared to $20.4 million at December 31, 2011.

Additionally, in order to systematically quantify the credit risk impact of other trends and changes within the loan portfolio, the Bank utilizes qualitative adjustments to the Migration Analysis within established parameters. The parameters for making adjustments are established under a Credit Risk Matrix that provides seven possible scenarios for each of the factors below. The matrix allows for up to three positive (Major, Moderate, and Minor), three negative (Major, Moderate, and Minor), and one neutral credit risk scenarios within each factor for each loan type pool. Generally, the factors are considered to have no significant impact (neutral) to our historical migration ratios. However, if information exists to warrant adjustment to the Migration Analysis, changes are made in accordance with the established parameters supported by narrative and/or statistical analysis. The Credit Risk Matrix and the nine possible scenarios enable the Bank to qualitatively adjust the Loss Migration Ratio by as much as 50 basis points in either direction (positive or negative) for each loan type pool. This matrix considers the following nine factors, which are patterned after the guidelines provided under the FFIEC Interagency Policy Statement on the Allowance for Loan and Lease Losses:

• Changes in lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices.

• Changes in national and local economic and business conditions and developments, including the condition of various market segments.

• Changes in the nature and volume of the loan portfolio.

• Changes in the experience, ability and depth of lending management and staff.

• Changes in the trends of the volume and severity of past due loans, Classified Loans, non-accrual loans, troubled debt restructurings and other loan modifications.

• Changes in the quality of our loan review system and the degree of oversight by the Directors.

• Changes in the value of underlying collateral for collateral-dependent loans.

• The existence and effect of any concentrations of credit and changes in the level of such concentrations.

• The effect of external factors, such as competition and legal and regulatory requirements, on the level of estimated losses in our loan portfolio.

The qualitative loan loss allowance on the loan portfolio was $34.1 million at September 30, 2012, compared to $23.5 million at December 31, 2011.

We also establish specific loss allowances for loans where we have identified potential credit risk conditions or circumstances related to a specific individual credit. The specific allowance amounts are determined by a method prescribed by FASB ASC 310-10-35-22, Measurement of Impairment. The loans identified as impaired will be accounted for in accordance with one of the three acceptable valuation methods: 1) the present value of future cash flows discounted at the loan's effective interest rate; 2) the loan's observable market price; or 3) the fair value of the collateral, if the loan is collateral dependent. For the collateral dependent impaired loans, we obtain a new appraisal to determine the amount of impairment as of the date that the loan became impaired. The appraisals are based on an “as is” valuation. To ensure that appraised values remain current, we either obtain updated appraisals every twelve months from a qualified independent appraiser or an internal re-valuation of the collateral is performed by qualified personnel. If the third party market data indicates that the value of our collateral property has declined since the most recent valuation date, we adjust the value of the property downward to reflect current market conditions. If the fair value of the collateral, less cost to sell, is less than the recorded amount of the loan, we then recognize impairment by creating or adjusting an existing valuation allowance with a corresponding charge to the provision for loan losses. If an impaired loan is expected to be collected through liquidation of the underlying collateral, the loan is deemed to be collateral dependent and the amount of impairment is charged off against the allowance for loan losses.

The Bank considers a loan to be impaired when it is probable that not all amounts due (principal and interest) will be collectible in accordance with the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. The significance of payment delays and payment shortfalls is determined on a case-by-case basis by taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record and the amount of the shortfall in relation to the principal and interest owed.

For commercial business loans, real estate loans and certain consumer loans, we base the measurement of loan impairment on the present value of the expected future cash flows, discounted at the loan's effective interest rate or on the fair value of the loan's collateral, less estimated costs to sell, if the loan is collateral dependent. We evaluate most consumer loans for impairment on a collective basis because these loans generally have smaller balances and are homogeneous in the underwriting of terms and conditions and in the type of collateral.

For our Credit Impaired Loans, the allowance for loan losses is based upon expected cash flows for these loans. To the extent that a deterioration in borrower credit quality results in a decrease in expected cash flows subsequent to the acquisition of the loans, an allowance for loan losses would be established based on our estimate of future credit losses over the remaining life of the loans.

The following table presents loans by portfolio segment and impairment method at September 30, 2012 and December 31, 2011:

	As of September 30, 2012
	Real estate - Residential			Real estate - Commercial			Real estate - Construction			Commercial business			Trade finance			Consumer and other			Total
	(In thousands)
Impaired loans (Gross carrying value)	$	0		$	46,930		$	1,710		$	27,575		$	5,968		$	134		$	82,317
Specific allowance	$	0		$	5,188		$	0		$	3,434		$	82		$	0		$	8,704
Loss coverage ratio	0.0		%	11.1		%	0.0		%	12.5		%	1.4		%	0.0		%	10.6		%
Non-impaired loans	$	3,354		$	2,834,149		$	54,723		$	871,402		$	171,317		$	54,308		$	3,989,253
General allowance	$	32		$	38,640		$	808		$	14,213		$	2,770		$	785		$	57,248
Loss coverage ratio	1.0		%	1.4		%	1.5		%	1.6		%	1.6		%	1.4		%	1.4		%
Total loans	$	3,354		$	2,881,079		$	56,433		$	898,977		$	177,285		$	54,442		$	4,071,570
Total allowance for loan losses	$	32		$	43,828		$	808		$	17,647		$	2,852		$	785		$	65,952
Loss coverage ratio	1.0		%	1.5		%	1.4		%	2.0		%	1.6		%	1.4		%	1.6		%

	As of December 31, 2011
	Real estate - Residential			Real estate - Commercial			Real estate - Construction			Commercial business			Trade finance			Consumer and other			Total
	(In thousands)
Impaired loans (Gross carrying value)	$	0		$	51,183		$	1,838		$	34,922		$	4,964		$	150		$	93,057
Specific allowance	$	0		$	10,476		$	49		$	7,168		$	342		$	0		$	18,035
Loss coverage ratio	0.0		%	20.5		%	2.7		%	20.5		%	6.9		%	0.0		%	19.4		%
Non-impaired loans	$	2,043		$	2,580,697		$	42,918		$	814,654		$	141,720		$	66,481		$	3,648,513
General allowance	$	9		$	27,831		$	675		$	13,513		$	1,444		$	445		$	43,917
Loss coverage ratio	0.4		%	1.1		%	1.6		%	1.7		%	1.0		%	0.7		%	1.2		%
Total loans	$	2,043		$	2,631,880		$	44,756		$	849,576		$	146,684		$	66,631		$	3,741,570
Total allowance for loan losses	$	9		$	38,307		$	724		$	20,681		$	1,786		$	445		$	61,952
Loss coverage ratio	0.4		%	1.5		%	1.6		%	2.4		%	1.2		%	0.7		%	1.7		%

Under certain circumstances, we provide borrowers relief through loan modifications. These modifications are either temporary in nature (“temporary modifications”) or are more substantive. At September 30, 2012, total modified loans were $45.1 million, compared to $32.8 million at December 31, 2011. The temporary modifications generally consist of interest only payments for a three to six month period, whereby principal payments are deferred. At the end of the modification period, the remaining principal balance is re-amortized based on the original maturity date. Loans subject to temporary modifications are generally downgraded to Substandard or Special Mention. At the end of the modification period, the loan either 1) returns to the original contractual terms; 2) is further modified and accounted for as a troubled debt restructuring in accordance with ASC 310-10-35; or 3) is disposed of through foreclosure or liquidation.

Troubled Debt Restructurings (“TDRs”) of loans are defined by ASC 310-40, “Troubled Debt Restructurings by Creditors” and ASC 470-60, “Troubled Debt Restructurings by Debtors” and evaluated for impairment in accordance with ASC 310-10-35. The concessions may be granted in various forms, including reduction in the stated interest rate, reduction in the amount of principal amortization, forgiveness of a portion of a loan balance or accrued interest, or extension of the maturity date. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under our internal underwriting policy.

A summary of TDRs on accrual and non-accrual by type of concession as of September 30, 2012 and December 31, 2011 is presented below:

	As of September 30, 2012
	TDR on accrual								TDR on non-accrual								TOTAL
	Real estate - Commercial		Commercial Business		Other		Total		Real estate - Commercial		Commercial Business		Other		Total
	(In thousands)
Payment concession	$	2,491	$	2,028	$	0	$	4,519	$	8,871	$	3,299	$	0	$	12,170	$	16,689
Maturity / Amortization concession	398		4,267		60		4,725		662		1,810		74		2,546		7,271
Rate concession	11,896		1,035		0		12,931		8,055		47		0		8,102		21,033
Principal forgiveness	0		0		0		0		0		67		0		67		67
	$	14,785	$	7,330	$	60	$	22,175	$	17,588	$	5,223	$	74	$	22,885	$	45,060

	As of December 31, 2011
	TDR on accrual								TDR on non-accrual								TOTAL
	Real estate - Commercial		Commercial Business		Other		Total		Real estate - Commercial		Commercial Business		Other		Total
	(In thousands)
Payment concession	$	947	$	1,364	$	0	$	2,311	$	3,840	$	3,438	$	0	$	7,278	$	9,589
Maturity / Amortization concession	0		1,355		0		1,355		1,181		1,738		0		2,919		4,274
Rate concession	12,375		2,735		0		15,110		3,344		397		0		3,741		18,851
Principal forgiveness	0		0		0		0		0		78		0		78		78
	$	13,322	$	5,454	$	0	$	18,776	$	8,365	$	5,651	$	0	$	14,016	$	32,792

TDRs on accrual status are comprised of loans that were accruing at the time of restructuring and for which the Bank anticipates full repayment of both principal and interest under the restructured terms. TDRs that are on non-accrual can be returned to accrual status after a period of sustained performance, generally determined to be six months of timely payments as modified. Sustained performance includes the periods prior to the modification if the prior performance met or exceeded the modified terms. TDRs on accrual status at September 30, 2012 were comprised of 9 commercial real estate loans totaling $14.8 million and 27 commercial business loans totaling $7.3 million. TDRs on accrual status at December 31, 2011 were comprised of 6 commercial real estate loans totaling $13.3 million and 19 commercial business loans totaling $5.5 million. We expect that the TDRs on accrual status as of September 30, 2012, which were all performing in accordance with their restructured terms, to continue to comply with the restructured terms because of the reduced principal or interest payments on these loans. TDRs that were restructured at market interest rates and had sustained performance as agreed under the modified loan terms may be reclassified as non-TDRs after each year end but are still monitored for potential impairment.

The following table presents loans by class modified as TDRs that occurred during the three and nine months ended September 30, 2012:

	Three Months Ended September 30, 2012					Nine Months Ended September 30, 2012
	Number of Loans	Pre- Modification		Post- Modification		Number of Loans	Pre- Modification		Post- Modification
	(Dollars in thousand)
Legacy Loans:
Real estate - Commercial
Retail	0	$	0	$	0	4	$	976	$	935
Hotel & Motel	0	0		0		1	1,479		1,447
Gas Station & Car Wash	0	0		0		1	216		97
Mixed Use	0	0		0			0		0
Industrial & Warehouse	0	0		0		1	1,060		1,045
Other	0	0		0		2	8,604		5,581
Real estate - Construction	0	0		0		0	0		0
Commercial business	4	2,299		2,251		11	3,666		4,528
Trade Finance	0	0		0		1	0		50
Subtotal	4	$	2,299	$	2,251	21	$	16,001	$	13,683
Acquired Loans:
Real estate - Commercial
Retail	1	$	401	$	398	2	$	1,458	$	1,341
Hotel & Motel	0	0		0		1	6,165		6,051
Gas Station & Car Wash	0	0		0		0	0		0
Mixed Use	0	0		0		0	0		0
Industrial & Warehouse	0	0		0		0	0		0
Other	1	654		643		1	670		643
Real estate - Construction	0	0		0		0	0		0
Commercial business	1	241		230		5	748		1,425
Trade Finance	0	0		0		0	0		0
Subtotal	3	$	1,296	$	1,271	9	$	9,041	$	9,460
Total	7	$	3,595	$	3,522	30	$	25,042	$	23,143

The specific reserves for the TDRs described above as of September 30, 2012 were $1.9 million and the charge offs for the three and nine months ended September 30, 2012 were $6 thousand and $124 thousand, respectively.

The following table presents loans by class for TDRs that have been modified within the previous twelve months and have subsequently had a payment default during the three and nine months ended September 30, 2012:

	Three Months Ended September 30, 2012			Nine Months Ended September 30, 2012
	Number of Loans	Balance		Number of Loans	Balance
	(Dollars In thousands)
Legacy Loans:
Real estate - Commercial
Retail	0	$	0	0	$	0
Gas Station & Car Wash	1	215		1	215
Industrial & Warehouse	0	0		1	1,045
Other	1	718		1	718
Commercial Business	2	45		2	45
Subtotal	4	$	978	5	$	2,023
Acquired Loans:
Real estate - Commercial
Retail	0	$	0	0	$	0
Hotel & Motel	0	0		1	6,051
Industrial & Warehouse	0	0		0	0
Other	0	0		0	0
Commercial Business	1	148		1	148
Subtotal	1	$	148	2	$	6,199
	5	$	1,126	7	$	8,222

A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. The specific reserves for the TDRs described above as of September 30, 2012 were $113 thousand and the charge offs for the three and nine months ended September 30, 2012 were $6 thousand and $124 thousand, respectively.

We have allocated $6.1 million and $6.4 million of specific reserves to TDRs as of September 30, 2012 and December 31, 2011, respectively. As of September 30, 2012 and December 31, 2011, we did not have any outstanding commitments to extend additional funds to these borrowers.

Covered Loans

On April 16, 2010, the Department of Financial Institutions closed Innovative Bank, California, and appointed the FDIC as its receiver. On the same date, Center Bank assumed the banking operations of Innovative Bank from the FDIC under a purchase and assumption agreement and two related loss sharing agreements with the FDIC. Upon the merger between Nara Bancorp and Center Financial, the Company assumed the loss sharing agreements with the FDIC.

Covered nonperforming assets totaled $2.3 million and $3.6 million at September 30, 2012 and December 31, 2011, respectively. These covered nonperforming assets are subject to the loss sharing agreements with the FDIC. The covered nonperforming assets at September 30, 2012 and December 31, 2011 were as follows:

	September 30, 2012		December 31, 2011
	(In thousands)
Covered loans on non-accrual status	$	476	$	0
Covered other real estate owned	1,821		3,575
Total covered nonperforming assets	$	2,297	$	3,575
Acquired covered loans	$	78,141	$	89,959

Loans accounted for under ASC 310-30 are generally considered accruing and performing loans and the accretable discount is accreted to interest income over the estimate life of the loan when cash flows are reasonably estimable. Accordingly, acquired impaired loans that are contractually past due are still considered to be accruing and performing loans. The loans may be classified as nonaccrual if the timing and amount of future cash flows is not reasonably estimable.

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Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 734	$ 569
Amount of unrecorded benefit	220
Penalties and interest accrued	$ 58	$ 77

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Earnings Per Share ("EPS")

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share ("EPS")

Earnings Per Share (“EPS”)

Basic EPS does not reflect the possibility of dilution that could result from the issuance of additional shares of common stock upon exercise or conversion of outstanding securities, and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted to common stock that would then share in our earnings. For the three months ended September 30, 2012 and 2011, stock options and restricted shares awards for approximately 565 thousand shares and 381 thousand shares of common stock, respectively, were excluded in computing diluted earnings per common share because they were antidilutive. For the nine months ended September 30, 2012 and 2011, stock options and restricted shares awards for approximately 564 thousand and 376 thousand shares of common stock, respectively, were excluded in computing diluted earnings per common share because they were antidilutive. Additionally, warrants to purchase 337,000 shares of common stock (related to the TARP Capital Purchase Plan) were antidilutive and excluded for the three and nine months ended September 30, 2012. Warrants to purchase 521,000 shares of common stock (related to the TARP Capital Purchase Plan) were antidilutive and excluded for the three and nine months ended September 30, 2011.

The following table shows the computation of basic and diluted EPS for the three and six months ended September 30, 2012 and 2011.

	For the three months ended September 30,
	2012					2011
	Net income available to common stockholders (Numerator)		Shares (Denominator)	Per Share (Amount)		Net income available to common stockholders (Numerator)			Shares (Denominator)	Per Share (Amount)
	(In thousands, except share and per share data)
Net income as reported	$	18,398				$	9,815
Less: preferred stock dividends and accretion of preferred stock discount	0					(1,077		)
Basic EPS - common stock	$	18,398	78,015,960	$	0.24	$	8,738		38,098,142	$	0.23
Effect of Dilutive Securities:
Stock Options and Performance Units			87,835						5,541
Common stock warrants			0						0
Diluted EPS - common stock	$	18,398	78,103,795	$	0.24	$	8,738		38,103,683	$	0.23

	For the nine months ended September 30,
	2012						2011
	Net income available to common stockholders (Numerator)			Shares (Denominator)	Per Share (Amount)		Net income available to common stockholders (Numerator)			Shares (Denominator)	Per Share (Amount)
	(In thousands, except share and per share data)
Net income as reported	$	61,696					$	22,879
Less: preferred stock dividends and accretion of preferred stock discount	(5,640		)				(3,227		)
Basic EPS - common stock	$	56,056		78,004,458	$	0.72	$	19,652		38,044,625	$	0.52
Effect of Dilutive Securities:
Stock Options and Performance Units				77,601						25,516
Common stock warrants				0						0
Diluted EPS - common stock	$	56,056		78,082,059	$	0.72	$	19,652		38,070,141	$	0.52

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Securities Available for Sale

9 Months Ended

Sep. 30, 2012

Available-for-sale Securities [Abstract]

Securities Available for Sale

Securities Available for Sale

The following is a summary of securities available for sale as of the dates indicated:

	At September 30, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(In thousands)
Debt securities:
U.S. Treasury	$	0	$	0	$	0		$	0
GSE collateralized mortgage obligations*	230,819		4,875		(25		)	235,669
GSE mortgage-backed securities*	414,487		13,243		(141		)	427,589
Trust preferred security	4,498		0		(961		)	3,537
Municipal bonds	4,506		633		0			5,139
Total debt securities	654,310		18,751		(1,127		)	671,934
Mutual funds - GSE mortgage related securities	14,710		415		0			15,125
	$	669,020	$	19,166	$	(1,127	)	$	687,059
	At December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(In thousands)
Debt securities:
U.S. Treasury	$	300	$	0	$	0		$	300
GSE collateralized mortgage obligations*	222,400		5,480		(44		)	227,836
GSE mortgage-backed securities*	477,555		10,322		(123		)	487,754
Trust preferred securities	5,532		0		(1,184		)	4,348
Municipal bonds	5,257		507		0			5,764
Total debt securities	711,044		16,309		(1,351		)	726,002
Mutual funds - GSE mortgage related securities	14,710		227		(19		)	14,918
	$	725,754	$	16,536	$	(1,370	)	$	740,920

* Government Sponsored Enterprises (GSE) investments were issued by GNMA, FNMA and FHLMC and are all residential mortgage-backed investments.

As of September 30, 2012 and December 31, 2011, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders' equity.

The proceeds from sales of securities and the associated gains are listed below:

	For the three months ended September 30,				For the nine months ended September 30,
	2012		2011		2012		2011
	(In thousands)
Proceeds	$	26,563	$	0	$	28,446	$	0
Gross gains	132		0		948		0
Gross losses	0		0		0		0

The amortized cost and estimated fair value of debt securities at September 30, 2012, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	Amortized Cost		Estimated Fair Value
	(In thousands)
Available for sale:
Due within one year	$	0	$	0
Due after one year through five years	340		358
Due after five years through ten years	3,883		4,451
Due after ten years	4,781		3,867
GSE collaterized mortgage obligations	230,819		235,669
GSE mortgage-backed securities	414,487		427,589
Mutual funds - GSE mortgage related securities	14,710		15,125
	$	669,020	$	687,059

Securities with carrying values of approximately $348.9 million and $425.5 million at September 30, 2012 and December 31, 2011, respectively, were pledged to secure public deposits, various borrowings and for other purposes as required or permitted by law.

The following table shows our investments’ gross unrealized losses and estimated fair value, aggregated by investment category and the length of time that the individual securities have been in a continuous unrealized loss position as of the dates indicated.

	At September 30, 2012
	Less than 12 months						12 months or longer						Total
Description of Securities	Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses
	(In thousands)
GSE collaterized mortgage obligations	4	$	7,323	$	(25	)	0	$	0	$	0		4	$	7,323	$	(25	)
GSE mortgage-backed securities	6	9,541		(107		)	1	3,756		(34		)	7	13,297		(141		)
Trust preferred security	0	0		0			1	3,537		(961		)	1	3,537		(961		)
Mutual funds - GSE mortgage related security	0	0		0			0	0		0			0	0		0
	10	$	16,864	$	(132	)	2	$	7,293	$	(995	)	12	$	24,157	$	(1,127	)

	At December 31, 2011
	Less than 12 months						12 months or longer						Total
Description of Securities	Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses
	(In thousands)
GSE collaterized mortgage obligations	2	$	3,305	$	(28	)	1	$	14,007	$	(16	)	3	$	17,312	$	(44	)
GSE mortgage-backed securities	5	38,082		(123		)	0	0		0			5	38,082		(123		)
Trust Preferred security	0	0		0			1	3,303		(1,184		)	1	3,303		(1,184		)
Mutual funds - GSE mortgage related security	1	5,229		(19		)	0	0		0			1	5,229		(19		)
	8	$	46,616	$	(170	)	2	$	17,310	$	(1,200	)	10	$	63,926	$	(1,370	)

We evaluate securities for other-than-temporary-impairment ("OTTI") on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the financial condition and near-term prospects of the issuer, the length of time and the extent to which the fair value of the securities has been less than our cost for the securities, and our intention to sell, or whether it is more likely than not that we will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. In analyzing an issuer’s financial condition, we consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition.

The trust preferred security at September 30, 2012 has an amortized cost of $4.5 million and an unrealized loss of $1.0 million at September 30, 2012. The trust preferred security is scheduled to mature in May 2047, and had a first call date option in May 2012. Management determined this unrealized loss did not represent OTTI at September 30, 2012 as the investment is rated investment grade and there are no credit quality concerns with the obligor. The market value decline is deemed to be due to the current market volatility and is not reflective of management’s expectations of our ability to fully recover this investment, which may be at maturity. Interest on the trust preferred security been paid as agreed and management believes this will continue in the future and the trust preferred security will be repaid in full as scheduled. For these reasons, no OTTI was recognized on the trust preferred security at September 30, 2012.

We consider the losses on our investments in unrealized loss positions at September 30, 2012 to be temporary based on: 1) the likelihood of recovery; 2) the information relative to the extent and duration of the decline in market value; and 3) the Company’s intention not to sell, and our determination that it is more likely than not that we will not be required to sell a security in an unrealized loss position before recovery of its amortized cost basis.

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Borrowings

9 Months Ended

Sep. 30, 2012

Debt Disclosure [Abstract]

Borrowings

Borrowings

We maintain a secured credit facility with the Federal Home Loan Bank of San Francisco (“FHLB”) against which the Bank may take advances. The borrowing capacity is limited to the lower of 25% of the Bank’s total assets or the Bank’s collateral capacity, which was $1.3 billion at September 30, 2012 and December 31, 2011. The terms of this credit facility require the Company to pledge eligible collateral with the FHLB equal to at least 100% of outstanding advances.

At September 30, 2012 and December 31, 2011, real estate secured loans with a carrying amount of approximately $2.0 billion were pledged as collateral for borrowings from the FHLB. At September 30, 2012 and December 31, 2011, other than FHLB stock, securities totaling $0 and $3.0 million, respectively, were pledged as collateral for borrowings from the FHLB.

At September 30, 2012 and December 31, 2011, FHLB borrowings were $460.8 million and $344.4 million, had a weighted average interest rate of 1.33% and 1.93%, respectively, and had various maturities through September 2017. At September 30, 2012 and December 31, 2011, $80.0 million and $205.0 million, respectively, of the advances were putable advances with various putable dates and strike prices. The cost of FHLB borrowings as of September 30, 2012 ranged between 0.28% and 3.93%. At September 30, 2012, the Company had a remaining borrowing capacity of $836.7 million.

At September 30, 2012, the contractual maturities for FHLB borrowings were as follows:

	Contractual Maturities		Maturity/ Put Date
	(In thousands)
Due within one year	$	194,000	$	245,815
Due after one year through five years	266,815		215,000
Due after five years through ten years	0		0
	$	460,815	$	460,815

In addition, as a member of the Federal Reserve Bank system, we may also borrow from the Federal Reserve Bank of San Francisco. The maximum amount that we may borrow from the Federal Reserve Bank’s discount window is up to 95% of the outstanding principal balance of the qualifying loans and the fair value of the securities that we pledge. At September 30, 2012, the principal balance of the qualifying loans was $480.2 million and the collateral value of investment securities were $0.6 million, and no borrowings were outstanding against this line.

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Stockholders' Equity and Regulatory Matters - Discussion of Warrants (Details) (USD $)	9 Months Ended		0 Months Ended		9 Months Ended		0 Months Ended			0 Months Ended			0 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Jun. 27, 2012 Cumulative Preferred Stock, Series A	Nov. 21, 2008 Cumulative Preferred Stock, Series A	Sep. 30, 2012 Cumulative Preferred Stock, Series A First Five Years	Sep. 30, 2012 Cumulative Preferred Stock, Series A Year Six and Thereafter	Aug. 08, 2012 Common Stock	Dec. 03, 2009 Common Stock	Nov. 21, 2008 Common Stock	Jun. 27, 2012 Fixed Rate Cumulative Perpetual Preferred Stock, Series B	Nov. 30, 2011 Center Financial Corporation	Nov. 30, 2011 Center Financial Corporation Common Stock	Nov. 30, 2011 Center Financial Corporation Fixed Rate Cumulative Perpetual Preferred Stock, Series B
Class of Warrant or Right [Line Items]
Funds received through TARP				$ 67,000,000
New issues				67,000									55,000
Dividend rate					5.00%	9.00%
Period of time before callable				3 years
Number of securities called by warrants or rights							521,266		1,042,531
Exercise price of warrants or rights									9.64
Term	10 years
Adjusted number of securities								521,266
Adjusted percent of original issue								50.00%
Conversion factor per one share of acquiror											0.7805
Number of securities due to merger												337,480
Exercise price due to merger												12.22
Stock redeemed			67,000,000							55,000,000
Payments for purchase of warrants	$ 2,189,000	$ 0					$ 2,200,000
Potential repurchase							337,480

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Subsequent Event (Details) (Subsequent event [Member], Pacific International Bancorp [Member], USD $) In Millions, except Per Share data, unless otherwise specified	0 Months Ended
	Oct. 22, 2012 bank_location
Subsequent Event [Line Items]
Acquired Assets	$ 200
Bank locations	4
Stock-for-stock transaction value	8.2
Common Stock
Subsequent Event [Line Items]
Average value of acquiree shares	$ 1.75
Series A Preferred Stock
Subsequent Event [Line Items]
Acquiree stock purchased and retired during acquisition	$ 6.5

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Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Carrying Amount
Financial Assets:
Cash and cash equivalents		$ 300,110
Term federal funds sold		40,000
Loans held for sale		42,407
Loans receivable - net		3,676,874
Federal Home Loan Bank stock	23,500	27,373
Accrued interest receivable		13,439
FDIC loss share receivable		10,819
Customers' liabilities on acceptances		10,515
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]
Noninterest-bearing deposits		984,350
Saving and other interest bearing demand deposits		1,435,441
Time deposits		1,521,101
Borrowings from Federal Home Loan Bank		344,402
Subordinated debentures		52,102
Accrued interest payable		6,519
Bank's liabilities on acceptances outstanding		10,515
Estimated Fair Value
Financial Assets:
Cash and cash equivalents		300,110
Term federal funds sold		40,000
Loans held for sale		43,782
Loans receivable - net		3,933,710
Accrued interest receivable		13,439
FDIC loss share receivable		10,819
Customers' liabilities on acceptances		10,515
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]
Noninterest-bearing deposits		984,350
Saving and other interest bearing demand deposits		1,435,441
Time deposits		1,532,152
Borrowings from Federal Home Loan Bank		349,311
Subordinated debentures		53,757
Accrued interest payable		6,519
Bank's liabilities on acceptances outstanding		10,515
Quoted Prices in Active Markets for Identical Assets (Level 1) | Carrying Amount
Financial Assets:
Cash and cash equivalents	229,643
Term federal funds sold	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimated Fair Value
Financial Assets:
Cash and cash equivalents	229,643
Term federal funds sold	0
Significant Other Observable Inputs (Level 2) | Carrying Amount
Financial Assets:
Loans held for sale	58,484
Accrued interest receivable	12,881
Customers' liabilities on acceptances	10,373
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]
Noninterest-bearing deposits	1,105,161
Saving and other interest bearing demand deposits	1,331,013
Time deposits	1,616,350
Borrowings from Federal Home Loan Bank	460,815
Subordinated debentures	41,809
Accrued interest payable	5,451
Bank's liabilities on acceptances outstanding	10,373
Significant Other Observable Inputs (Level 2) | Estimated Fair Value
Financial Assets:
Loans held for sale	64,501
Accrued interest receivable	12,881
Customers' liabilities on acceptances	10,373
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]
Noninterest-bearing deposits	1,105,161
Saving and other interest bearing demand deposits	1,331,013
Time deposits	1,611,240
Borrowings from Federal Home Loan Bank	458,392
Subordinated debentures	32,822
Accrued interest payable	5,451
Bank's liabilities on acceptances outstanding	10,373
Significant Unobservable Inputs (Level 3) | Carrying Amount
Financial Assets:
Loans receivable - net	4,003,542
FDIC loss share receivable	7,325
Significant Unobservable Inputs (Level 3) | Estimated Fair Value
Financial Assets:
Loans receivable - net	4,301,334
FDIC loss share receivable	$ 7,325

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Center Merger (Details) (USD $) Share data in Millions, unless otherwise specified	3 Months Ended		9 Months Ended						0 Months Ended	3 Months Ended		9 Months Ended		3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended	0 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010	Nov. 30, 2011 Center Financial Corporation office	Sep. 30, 2012 Center Financial Corporation	Sep. 30, 2011 Center Financial Corporation	Sep. 30, 2012 Center Financial Corporation	Sep. 30, 2011 Center Financial Corporation	Sep. 30, 2012 Center Financial Corporation Salaries and benefits	Sep. 30, 2012 Center Financial Corporation Salaries and benefits	Sep. 30, 2012 Center Financial Corporation Professional fees	Sep. 30, 2012 Center Financial Corporation Professional fees	Nov. 30, 2011 Center Financial Corporation Common Stock
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Conversion factor per one share of acquiror									0.7805
Shares issued																		31.2
Consideration transferred									$ 292,000,000
Full service branches acquired									21
Loan production offices acquired									2
Cash Acquired from Acquisition									326,000,000
Fair value of acquired receivables									1,400,000,000
Fair value of acquired deposits									1,800,000,000
Fair value of acquired borrowings									149,000,000
Fair value of goodwill	89,882,000	2,509,000	89,882,000	2,509,000	89,882,000	90,473,000	2,509,000	2,509,000	88,000,000	87,400,000		87,400,000
Goodwill allocation adjustment	0	0	(591,000)	0								(591,000)
Integration related costs										$ 183,000	$ 574,000	$ 3,300,000	$ 1,500,000	$ 33,000	$ 1,100,000	$ 150,000	$ 2,200,000

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Loans Receivable and Allowance for Loan Losses - Loans Held For Investment - Sales or Reclassifciation to Held for Sale (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward]
Sales or reclassification to held for sale	$ 2,163	$ 5,970	$ 2,819	$ 23,279
Real Estate | Real estate - Commercial
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward]
Sales or reclassification to held for sale	2,163	5,970	2,819	18,679
Real Estate | Real estate - Construction
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward]
Sales or reclassification to held for sale	0	0	0	4,600
Commercial Business
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward]
Sales or reclassification to held for sale	$ 0	$ 0	$ 0	$ 0

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Stockholders' Equity and Regulatory Matters

9 Months Ended

Sep. 30, 2012

Stockholders’ Equity and Regulatory Matters [Abstract]

Stockholders' Equity and Regulatory Matters

Stockholders’ Equity and Regulatory Matters

The Company and the Bank are subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements, such as restrictions on the growth, expansion or the payment of dividends or other capital distributions or management fees. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier I capital (as defined) to average assets (as defined). Management believes that, as of September 30, 2012 and December 31, 2011, the Company and the Bank met all capital adequacy requirements to which they are subject.

As of September 30, 2012 and December 31, 2011, the most recent regulatory notification categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier I risk-based and Tier I leverage ratios as set forth in the table below. There are no conditions or events since the notification that management believes have changed the Bank’s category.

On November 21, 2008, the Company received $67 million from the U.S. Treasury through its TARP capital purchase plan and issued 67,000 shares of cumulative preferred stock, Series A. The preferred stock paid cumulative dividends at the rate of 5% per year for the first five years and 9% per year thereafter. The shares are callable by the Company at par after three years if the repurchase is made with proceeds of a new offering or placement of common equity or of certain preferred stock treated as Tier 1 capital under applicable Federal banking regulations.

In conjunction with the purchase of the Company’s preferred stock, the U.S. Treasury received a warrant to purchase 1,042,531 shares of the Company’s common stock at $9.64 per share. The term of the warrant was ten years. On December 3, 2009, US Treasury approved the Company’s request for an adjustment to the Company’s warrant share position due to a qualified equity offering in November 2009. The adjusted number of warrant shares is 521,266, which is 50% of original number of warrant shares 1,042,531.

Upon the merger with Center Financial, the Company issued 55,000 shares of a new series of our preferred stock, designated as our Fixed Rate Cumulative Perpetual Preferred Stock, Series B, having substantially the same rights, preferences, privileges and voting powers as our Series A Preferred Stock in exchange for the shares of similar preferred stock issued by Center Financial under the Treasury Department's TARP Capital Purchase Program. The ten-year warrant to purchase Center Financial common stock that was issued in connection with Center Financial's sale of preferred stock to the Treasury Department was converted into a warrant to purchase BBCN Bancorp common stock upon our merger with Center. Reflecting the merger exchange ratio of 0.7805, the warrant now entitles the holder of the warrant to purchase, in one or more exercises of the warrant, up to 337,480 shares of BBCN Bancorp common stock at a price of $12.22 per share.

In June 2012, the Company redeemed $67 million and $55 million of the aforementioned Series A and Series B Preferred Stock, respectively.

On August 8, 2012, we purchased from the Treasury Department, the outstanding warrant dated November 21, 2008 relating to 521,266 shares of the Company's common stock, at a purchase price of $2.2 million. We have not reached agreement with the Treasury Department regarding repurchase of the warrant for the purchase of 337,480 shares of of the Company's common stock that we issued in connection with our merger with Center Financial.

The Company’s and the Bank’s actual capital amounts and ratios are presented in the table below:

	Actual				Required For Capital Adequacy Purposes				Required To Be Well Capitalized under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
As of September 30, 2012
Total capital (to risk-weighted assets):
Company	$	723,954	16.5	%	$	351,432	8.0	%	N/A		N/A
Bank	$	702,825	16.0	%	$	351,209	8.0	%	$	439,011	10.0	%
Tier I capital (to risk-weighted assets):
Company	$	668,710	15.2	%	$	175,716	4.0	%	N/A		N/A
Bank	$	647,616	14.8	%	$	175,604	4.0	%	$	263,407	6.0	%
Tier I capital (to average assets):
Company	$	668,710	13.2	%	$	203,354	4.0	%	N/A		N/A
Bank	$	647,616	12.7	%	$	203,307	4.0	%	$	254,134	5.0	%
	Actual				Required For Capital Adequacy Purposes				Required To Be Well Capitalized under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
As of December 31, 2011
Total capital (to risk-weighted assets):
Company	$	784,054	19.4	%	$	323,144	8.0	%	N/A		N/A
Bank	$	721,551	17.9	%	$	322,891	8.0	%	$	403,613	10.0	%
Tier I capital (to risk-weighted assets):
Company	$	733,319	18.2	%	$	161,572	4.0	%	N/A		N/A
Bank	$	670,855	16.6	%	$	161,445	4.0	%	$	242,168	6.0	%
Tier I capital (to average assets):
Company	$	733,319	19.8	%	$	148,044	4.0	%	N/A		N/A
Bank	$	670,855	18.1	%	$	148,038	4.0	%	$	185,048	5.0	%

Under federal banking law, dividends declared by the Bank in any calendar year may not, without the approval of the regulatory agency, exceed its net income for that year combined with its retained income from the preceding two years. However, the regulatory agency has previously issued a bulletin to all banks outlining guidelines limiting the circumstances under which banks may pay dividends even if the banks are otherwise statutorily authorized to pay dividends. The limitations impose a requirement or in some cases suggest that prior approval of the regulatory agency should be obtained before a dividend is paid if a bank is the subject of administrative action or if the payment could be viewed by the regulatory agency as unsafe or unusual.

Under California Financial Code Section 1133, a bank, or a majority-owned subsidiary of a bank may, with the prior approval of the commissioner, make a distribution to the shareholders of such bank in an amount not exceeding the greatest of: a) the retained earnings of the bank; (b) the net income of the bank for its last fiscal year; or (c) the net income of the bank for its current fiscal year.

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Computation of basic and diluted EPS

The following table shows the computation of basic and diluted EPS for the three and six months ended September 30, 2012 and 2011.

	For the three months ended September 30,
	2012					2011
	Net income available to common stockholders (Numerator)		Shares (Denominator)	Per Share (Amount)		Net income available to common stockholders (Numerator)			Shares (Denominator)	Per Share (Amount)
	(In thousands, except share and per share data)
Net income as reported	$	18,398				$	9,815
Less: preferred stock dividends and accretion of preferred stock discount	0					(1,077		)
Basic EPS - common stock	$	18,398	78,015,960	$	0.24	$	8,738		38,098,142	$	0.23
Effect of Dilutive Securities:
Stock Options and Performance Units			87,835						5,541
Common stock warrants			0						0
Diluted EPS - common stock	$	18,398	78,103,795	$	0.24	$	8,738		38,103,683	$	0.23

	For the nine months ended September 30,
	2012						2011
	Net income available to common stockholders (Numerator)			Shares (Denominator)	Per Share (Amount)		Net income available to common stockholders (Numerator)			Shares (Denominator)	Per Share (Amount)
	(In thousands, except share and per share data)
Net income as reported	$	61,696					$	22,879
Less: preferred stock dividends and accretion of preferred stock discount	(5,640		)				(3,227		)
Basic EPS - common stock	$	56,056		78,004,458	$	0.72	$	19,652		38,044,625	$	0.52
Effect of Dilutive Securities:
Stock Options and Performance Units				77,601						25,516
Common stock warrants				0						0
Diluted EPS - common stock	$	56,056		78,082,059	$	0.72	$	19,652		38,070,141	$	0.52

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Loans Receivable and Allowance for Loan Losses - Past Due Financing Receivables (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012		Dec. 31, 2011
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	$ 7,119		$ 13,980
60 - 89 Days Past Due	2,955		8,945
Greater than 90 Days Past Due	22,454		17,265
Total Past Due	32,528		40,190
Non-accrual loans	29,368		31,213
Total Delinquent loans	61,896		71,403
Greater than 90 days and accruing	22,454		17,265
Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	3,108		2,842
60 - 89 Days Past Due	517		507
Greater than 90 Days Past Due	364		0
Total Past Due	3,989		3,349
Non-accrual loans	19,928		31,213
Total Delinquent loans	23,917		34,562
Greater than 90 days and accruing	364		0
Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	4,011	[1]	11,138	[1]
60 - 89 Days Past Due	2,438	[1]	8,438	[1]
Greater than 90 Days Past Due	22,090	[1]	17,265	[1]
Total Past Due	28,539	[1]	36,841	[1]
Non-accrual loans	9,440	[1]	0	[1]
Total Delinquent loans	37,979	[1]	36,841	[1]
Greater than 90 days and accruing	22,090	[1]	17,265	[1]
Real Estate | Real estate - Residential | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	29		36
60 - 89 Days Past Due	0		0
Greater than 90 Days Past Due	0		0
Total Past Due	29		36
Non-accrual loans	0		0
Total Delinquent loans	29		36
Greater than 90 days and accruing	0		0
Real Estate | Real estate - Residential | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	[1]	0	[1]
60 - 89 Days Past Due	0	[1]	0	[1]
Greater than 90 Days Past Due	0	[1]	0	[1]
Total Past Due	0	[1]	0	[1]
Non-accrual loans	0	[1]	0	[1]
Total Delinquent loans	0	[1]	0	[1]
Greater than 90 days and accruing	0	[1]	0	[1]
Real Estate | Real estate - Commercial | Legacy | Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	1,670		428
60 - 89 Days Past Due	0		0
Greater than 90 Days Past Due	0		0
Total Past Due	1,670		428
Non-accrual loans	2,291		2,615
Total Delinquent loans	3,961		3,043
Greater than 90 days and accruing	0		0
Real Estate | Real estate - Commercial | Legacy | Hotel & Motel
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0		0
60 - 89 Days Past Due	0		0
Greater than 90 Days Past Due	364		0
Total Past Due	364		0
Non-accrual loans	1,021		481
Total Delinquent loans	1,385		481
Greater than 90 days and accruing	364		0
Real Estate | Real estate - Commercial | Legacy | Gas Station & Car Wash
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	362		627
60 - 89 Days Past Due	0		0
Greater than 90 Days Past Due	0		0
Total Past Due	362		627
Non-accrual loans	2,904		1,367
Total Delinquent loans	3,266		1,994
Greater than 90 days and accruing	0		0
Real Estate | Real estate - Commercial | Legacy | Mixed Use
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0		0
60 - 89 Days Past Due	0		0
Greater than 90 Days Past Due	0		0
Total Past Due	0		0
Non-accrual loans	1,837		820
Total Delinquent loans	1,837		820
Greater than 90 days and accruing	0		0
Real Estate | Real estate - Commercial | Legacy | Industrial & Warehouse
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	125		360
60 - 89 Days Past Due	0		0
Greater than 90 Days Past Due	0		0
Total Past Due	125		360
Non-accrual loans	758		3,066
Total Delinquent loans	883		3,426
Greater than 90 days and accruing	0		0
Real Estate | Real estate - Commercial | Legacy | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0		0
60 - 89 Days Past Due	263		119
Greater than 90 Days Past Due	0		0
Total Past Due	263		119
Non-accrual loans	6,150		10,992
Total Delinquent loans	6,413		11,111
Greater than 90 days and accruing	0		0
Real Estate | Real estate - Commercial | Acquired | Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	810	[1]	145	[1]
60 - 89 Days Past Due	22	[1]	64	[1]
Greater than 90 Days Past Due	1,930	[1]	1,675	[1]
Total Past Due	2,762	[1]	1,884	[1]
Non-accrual loans	4	[1]	0	[1]
Total Delinquent loans	2,766	[1]	1,884	[1]
Greater than 90 days and accruing	1,930	[1]	1,675	[1]
Real Estate | Real estate - Commercial | Acquired | Hotel & Motel
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	[1]	0	[1]
60 - 89 Days Past Due	1,549	[1]	45	[1]
Greater than 90 Days Past Due	938	[1]	0	[1]
Total Past Due	2,487	[1]	45	[1]
Non-accrual loans	6,051	[1]	0	[1]
Total Delinquent loans	8,538	[1]	45	[1]
Greater than 90 days and accruing	938	[1]	0	[1]
Real Estate | Real estate - Commercial | Acquired | Gas Station & Car Wash
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	232	[1]	2,536	[1]
60 - 89 Days Past Due	0	[1]	175	[1]
Greater than 90 Days Past Due	3,134	[1]	820	[1]
Total Past Due	3,366	[1]	3,531	[1]
Non-accrual loans	272	[1]	0	[1]
Total Delinquent loans	3,638	[1]	3,531	[1]
Greater than 90 days and accruing	3,134	[1]	820	[1]
Real Estate | Real estate - Commercial | Acquired | Mixed Use
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	467	[1]	1,178	[1]
60 - 89 Days Past Due	0	[1]	1,677	[1]
Greater than 90 Days Past Due	2,811	[1]	389	[1]
Total Past Due	3,278	[1]	3,244	[1]
Non-accrual loans	0	[1]	0	[1]
Total Delinquent loans	3,278	[1]	3,244	[1]
Greater than 90 days and accruing	2,811	[1]	389	[1]
Real Estate | Real estate - Commercial | Acquired | Industrial & Warehouse
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	18	[1]	3,372	[1]
60 - 89 Days Past Due	119	[1]	0	[1]
Greater than 90 Days Past Due	0	[1]	110	[1]
Total Past Due	137	[1]	3,482	[1]
Non-accrual loans	0	[1]	0	[1]
Total Delinquent loans	137	[1]	3,482	[1]
Greater than 90 days and accruing	0	[1]	110	[1]
Real Estate | Real estate - Commercial | Acquired | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	543	[1]	1,467	[1]
60 - 89 Days Past Due	52	[1]	226	[1]
Greater than 90 Days Past Due	5,402	[1]	4,237	[1]
Total Past Due	5,997	[1]	5,930	[1]
Non-accrual loans	965	[1]	0	[1]
Total Delinquent loans	6,962	[1]	5,930	[1]
Greater than 90 days and accruing	5,402	[1]	4,237	[1]
Real Estate | Real estate - Construction | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0		0
60 - 89 Days Past Due	0		0
Greater than 90 Days Past Due	0		0
Total Past Due	0		0
Non-accrual loans	0		128
Total Delinquent loans	0		128
Greater than 90 days and accruing	0		0
Real Estate | Real estate - Construction | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	[1]	0	[1]
60 - 89 Days Past Due	0	[1]	4,499	[1]
Greater than 90 Days Past Due	6,305	[1]	0	[1]
Total Past Due	6,305	[1]	4,499	[1]
Non-accrual loans	0	[1]	0	[1]
Total Delinquent loans	6,305	[1]	4,499	[1]
Greater than 90 days and accruing	6,305	[1]	0	[1]
Commercial Business | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	855		1,388
60 - 89 Days Past Due	254		388
Greater than 90 Days Past Due	0		0
Total Past Due	1,109		1,776
Non-accrual loans	4,843		11,477
Total Delinquent loans	5,952		13,253
Greater than 90 days and accruing	0		0
Commercial Business | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	1,592	[1]	1,739	[1]
60 - 89 Days Past Due	676	[1]	1,383	[1]
Greater than 90 Days Past Due	1,147	[1]	9,132	[1]
Total Past Due	3,415	[1]	12,254	[1]
Non-accrual loans	1,315	[1]	0	[1]
Total Delinquent loans	4,730	[1]	12,254	[1]
Greater than 90 days and accruing	1,147	[1]	9,132	[1]
Trade Finance | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	50		0
60 - 89 Days Past Due	0		0
Greater than 90 Days Past Due	0		0
Total Past Due	50		0
Non-accrual loans	50		117
Total Delinquent loans	100		117
Greater than 90 days and accruing	0		0
Trade Finance | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	[1]	0	[1]
60 - 89 Days Past Due	0	[1]	0	[1]
Greater than 90 Days Past Due	0	[1]	202	[1]
Total Past Due	0	[1]	202	[1]
Non-accrual loans	0	[1]	0	[1]
Total Delinquent loans	0	[1]	202	[1]
Greater than 90 days and accruing	0	[1]	202	[1]
Consumer and Other | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	17		3
60 - 89 Days Past Due	0		0
Greater than 90 Days Past Due	0		0
Total Past Due	17		3
Non-accrual loans	74		150
Total Delinquent loans	91		153
Greater than 90 days and accruing	0		0
Consumer and Other | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	349	[1]	701	[1]
60 - 89 Days Past Due	20	[1]	369	[1]
Greater than 90 Days Past Due	423	[1]	700	[1]
Total Past Due	792	[1]	1,770	[1]
Non-accrual loans	833	[1]	0	[1]
Total Delinquent loans	1,625	[1]	1,770	[1]
Greater than 90 days and accruing	$ 423	[1]	$ 700	[1]

[1] The acquired loans include Credit Impaired Loans (ASC 310-30 loans) and Performing Loans (loans that were pass graded at the time of the Merger).

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Securities Available for Sale (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012		Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 669,020		$ 725,754
Gross Unrealized Gains	19,166		16,536
Gross Unrealized Losses	(1,127)		(1,370)
Estimated Fair Value	687,059		740,920
U.S. Treasury
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	0		300
Gross Unrealized Gains	0		0
Gross Unrealized Losses	0		0
Estimated Fair Value	0		300
GSE collateralized mortgage obligations
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	230,819	[1]	222,400	[1]
Gross Unrealized Gains	4,875	[1]	5,480	[1]
Gross Unrealized Losses	(25)	[1]	(44)	[1]
Estimated Fair Value	235,669	[1]	227,836	[1]
GSE mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	414,487	[1]	477,555	[1]
Gross Unrealized Gains	13,243	[1]	10,322	[1]
Gross Unrealized Losses	(141)	[1]	(123)	[1]
Estimated Fair Value	427,589	[1]	487,754	[1]
Trust preferred securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,498		5,532
Gross Unrealized Gains	0		0
Gross Unrealized Losses	(961)		(1,184)
Estimated Fair Value	3,537		4,348
Municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,506		5,257
Gross Unrealized Gains	633		507
Gross Unrealized Losses	0		0
Estimated Fair Value	5,139		5,764
Total Debt securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	654,310		711,044
Gross Unrealized Gains	18,751		16,309
Gross Unrealized Losses	(1,127)		(1,351)
Estimated Fair Value	671,934		726,002
Mutual funds - GSE mortgage related securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	14,710		14,710
Gross Unrealized Gains	415		227
Gross Unrealized Losses	0		(19)
Estimated Fair Value	$ 15,125		$ 14,918

[1] Government Sponsored Enterprises (GSE) investments were issued by GNMA, FNMA and FHLMC and are all residential mortgage-backed investments

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Consolidated Statements Of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Statement of Other Comprehensive Income [Abstract]
Net income	$ 18,398	$ 9,815	$ 61,696	$ 22,879
Other comprehensive income (loss):
Unrealized gain on securities available for sale and interest only strips	3,374	3,479	3,867	6,606
Reclassification adjustments for gains realized in income	(133)	(64)	(949)	(70)
Tax expense (benefit)	1,261	1,308	1,051	2,532
Change in unrealized gain on securities available for sale and interest only strips	1,980	2,107	1,867	4,004
Reclassification adjustment for the deferred gain on early settlement of interest-rate caps	(11)	(11)	(33)	(33)
Tax expense (benefit)	(5)	(4)	(13)	(13)
Change in unrealized gain on interest-rate caps	(6)	(7)	(20)	(20)
Total other comprehensive gain (loss)	1,974	2,100	1,847	3,984
Total comprehensive income	$ 20,372	$ 11,915	$ 63,543	$ 26,863

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BBCN Bancorp, Inc.

9 Months Ended

Sep. 30, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BBCN Bancorp, Inc.

BBCN Bancorp, Inc.

BBCN Bancorp, Inc. ("BBCN Bancorp", on a parent-only basis, and "Company", "we" or "our" on a consolidated basis), formerly named Nara Bancorp, Inc., is a bank holding company headquartered in Los Angeles, California. BBCN Bank ("BBCN Bank" or "the Bank"), formerly named Nara Bank, opened for business in June 1989 under the name “United Citizens National Bank” as a national banking association, was renamed “Nara Bank, National Association” in January 1994 and, in January 2005, became “Nara Bank” upon converting to a California state-chartered bank. On November 30, 2011, we merged with Center Financial Corporation ("Center Financial" or "Center") in a merger of equals transaction. Concurrently with the merger, Nara Bancorp, Inc. ("Nara") changed its name to "BBCN Bancorp, Inc." At the bank level, Nara Bank merged into Center Bank and, concurrently with the merger, Center Bank changed its name to "BBCN Bank." The Bank has branches in California, the New York metropolitan area, New Jersey, the Seattle area of Washington and Chicago, as well as loan production offices in Atlanta, Dallas, Denver and Seattle.

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Subordinated Debentures - Summary of Subordinated Debentures (Details) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Subordinated Borrowing [Line Items]
Right to defer consecutive payments of interest, maximum term	5 years
Other assets
Subordinated Borrowing [Line Items]
Investment in common trust securities	$ 1,400,000	$ 2,000,000
Nara Bancorp Grantor Trust
Subordinated Borrowing [Line Items]
Number of grantor trusts issuing securities	4
Center Financial Corporation Grantor Trust
Subordinated Borrowing [Line Items]
Number of grantor trusts issuing securities	1
Trust Preferred Securities Subject to Mandatory Redemption
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	46,000,000
Percent included in tier one capital, maximum	25.00%
Excess of percent threshold included in tier two capital	25.00%
Trust Preferred Securities Subject to Mandatory Redemption | Nara Bancorp Grantor Trust
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	28,000,000
Trust Preferred Securities Subject to Mandatory Redemption | Center Financial Corporation Grantor Trust
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	18,000,000
Maximum | Trust Preferred Securities Subject to Mandatory Redemption
Subordinated Borrowing [Line Items]
Tier one risk based capital	$ 15,000,000,000

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Securities Available for Sale (Tables)

9 Months Ended

Sep. 30, 2012

Available-for-sale Securities [Abstract]

Summary of Securities Available for Sale

The following is a summary of securities available for sale as of the dates indicated:

	At September 30, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(In thousands)
Debt securities:
U.S. Treasury	$	0	$	0	$	0		$	0
GSE collateralized mortgage obligations*	230,819		4,875		(25		)	235,669
GSE mortgage-backed securities*	414,487		13,243		(141		)	427,589
Trust preferred security	4,498		0		(961		)	3,537
Municipal bonds	4,506		633		0			5,139
Total debt securities	654,310		18,751		(1,127		)	671,934
Mutual funds - GSE mortgage related securities	14,710		415		0			15,125
	$	669,020	$	19,166	$	(1,127	)	$	687,059
	At December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(In thousands)
Debt securities:
U.S. Treasury	$	300	$	0	$	0		$	300
GSE collateralized mortgage obligations*	222,400		5,480		(44		)	227,836
GSE mortgage-backed securities*	477,555		10,322		(123		)	487,754
Trust preferred securities	5,532		0		(1,184		)	4,348
Municipal bonds	5,257		507		0			5,764
Total debt securities	711,044		16,309		(1,351		)	726,002
Mutual funds - GSE mortgage related securities	14,710		227		(19		)	14,918
	$	725,754	$	16,536	$	(1,370	)	$	740,920

* Government Sponsored Enterprises (GSE) investments were issued by GNMA, FNMA and FHLMC and are all residential mortgage-backed investments

Schedule of Realized Gain (Loss)

The proceeds from sales of securities and the associated gains are listed below:

	For the three months ended September 30,				For the nine months ended September 30,
	2012		2011		2012		2011
	(In thousands)
Proceeds	$	26,563	$	0	$	28,446	$	0
Gross gains	132		0		948		0
Gross losses	0		0		0		0

Investments Classified by Contractual Maturity Date

The amortized cost and estimated fair value of debt securities at September 30, 2012, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	Amortized Cost		Estimated Fair Value
	(In thousands)
Available for sale:
Due within one year	$	0	$	0
Due after one year through five years	340		358
Due after five years through ten years	3,883		4,451
Due after ten years	4,781		3,867
GSE collaterized mortgage obligations	230,819		235,669
GSE mortgage-backed securities	414,487		427,589
Mutual funds - GSE mortgage related securities	14,710		15,125
	$	669,020	$	687,059

Schedule of Unrealized Loss on Investments

The following table shows our investments’ gross unrealized losses and estimated fair value, aggregated by investment category and the length of time that the individual securities have been in a continuous unrealized loss position as of the dates indicated.

	At September 30, 2012
	Less than 12 months						12 months or longer						Total
Description of Securities	Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses
	(In thousands)
GSE collaterized mortgage obligations	4	$	7,323	$	(25	)	0	$	0	$	0		4	$	7,323	$	(25	)
GSE mortgage-backed securities	6	9,541		(107		)	1	3,756		(34		)	7	13,297		(141		)
Trust preferred security	0	0		0			1	3,537		(961		)	1	3,537		(961		)
Mutual funds - GSE mortgage related security	0	0		0			0	0		0			0	0		0
	10	$	16,864	$	(132	)	2	$	7,293	$	(995	)	12	$	24,157	$	(1,127	)

	At December 31, 2011
	Less than 12 months						12 months or longer						Total
Description of Securities	Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses
	(In thousands)
GSE collaterized mortgage obligations	2	$	3,305	$	(28	)	1	$	14,007	$	(16	)	3	$	17,312	$	(44	)
GSE mortgage-backed securities	5	38,082		(123		)	0	0		0			5	38,082		(123		)
Trust Preferred security	0	0		0			1	3,303		(1,184		)	1	3,303		(1,184		)
Mutual funds - GSE mortgage related security	1	5,229		(19		)	0	0		0			1	5,229		(19		)
	8	$	46,616	$	(170	)	2	$	17,310	$	(1,200	)	10	$	63,926	$	(1,370	)

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Stock-Based Compensation - Restricted and Performance Unit Activity (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Tax benefit from compensation expense	$ 328,000	$ 5,000	$ 805,000	$ 21,000
Allocated share-based compensation expense	818,000	13,000	2,000,000	52,000
Total compensation cost not yet recognized	3,600,000		3,600,000
Total compensation cost not yet recognized, period for recognition			1 year 8 months 4 days
Retricted and performance unit activity
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding - beginning of the period (in shares)			52,480
Granted (in shares)			502,710
Vested (in shares)			(9,401)
Forfeited (in shares)			(4,599)
Outstanding - end of the period (in shares)	541,190		541,190
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Outstanding - beginning of the period, Weighted-Average Grant Date Fair Value (in dollars per share)			$ 7.42
Granted, Weighted-Average Grant Date Fair Value (in dollars per share)			$ 10.45
Vested, Weighted-Average Grant Date Fair Value (in dollars per share)			$ 6.69
Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share)			$ 7.46
Outstanding - end of the period, Weighted-Average Grant Date Fair Value (in dollars per share)	$ 10.31		$ 10.31
Weighted-Average Remaining Contractual Life (Years) - Outstanding			9 years 3 months 21 days
Performance shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Equity instruments other than options, vested in period			$ 100,000	$ 56,000

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Fair Value Measurements

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

FASB ASC 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect estimates of assumptions that market participants would use in pricing the asset or liability.

Securities Available for Sale

The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

Impaired Loans

The fair values of impaired loans are generally measured for impairment using the practical expedients permitted by FASB ASC 310-10-35 including impaired loans measured at an observable market price (if available), or at the fair value of the loan’s collateral (if the loan is collateral dependent). Fair value of the loan’s collateral, when the loan is dependent on collateral, is determined by appraisals or independent valuation, less costs to sell and result in a Level 2.

Derivatives

The fair value of our derivative financial instruments, including interest rate swaps and caps, is based on derivative valuation models using market data inputs as of the valuation date that can generally be verified and do not typically involve significant management judgments. (Level 2 inputs).

Other Real Estate Owned

Other real estate owned is fair valued at the time the loan is foreclosed upon and the asset is transferred to other real estate owned. The value is based primarily on third party appraisals, less costs to sell and result in a Level 2 classification of the inputs for determining fair value. Other real estate owned is reviewed and evaluated on at least an annual basis for additional impairment and adjusted to lower of cost or market accordingly, based on the same factors identified above.

Loans held for sale

Loans held for sale are carried at the lower of cost or fair value, as determined by outstanding commitments from investors, or based on recent comparable sales (Level 2 inputs), if available, and if not available, are based on discounted cash flows using current market rates applied to the estimated life and credit risk (Level 3 inputs) or may be assessed based upon the fair value of the collateral which is obtained from recent real estate appraisals (Level 3 inputs). These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in Level 3 classification of the inputs for determining fair value.

Assets and liabilities measured at fair value on a recurring basis are summarized below:

			Fair Value Measurements at the End of the Reporting Period Using
	September 30, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets:
Securities available for sale:
GSE collateralized mortgage obligations	$	235,669	$	0	$	235,669	$	0
GSE mortgage-backed securities	427,589		0		427,589		0
Trust preferred security	3,537		0		3,537		0
Municipal bonds	5,139		0		5,139		0
Mutual funds	15,125		15,125		0		0

There were no transfers between Level 1, 2 and 3 during the period ended September 30, 2012.

			Fair Value Measurements at the End of the Reporting Period Using
	December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets:
Securities available for sale:
U.S. Treasury	$	300	$	0	$	300	$	0
GSE collateralized mortgage obligations	227,836		0		227,836		0
GSE mortgage-backed securities	487,754		0		487,754		0
Trust preferred security	4,348		0		4,348		0
Municipal bonds	5,764		0		5,764		0
Mutual funds	14,918		14,918		0		0
Derivatives - Interest rate caps	9		0		9		0

Fair value adjustments for interest rate caps resulted in a net expense of $9 thousand for the nine months ended September 30, 2012 and $157 thousand for the year ended December 31, 2011.

Assets measured at fair value on a non-recurring basis are summarized below:

			Fair Value Measurements at the End of the Reporting Period Using
	September 30, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses) for the Nine Months Ended September 30, 2012			Total Gains (Losses) for the Three Months Ended September 30, 2012
	(In thousands)
Assets:
Impaired loans at fair value:
Real estate loans	$	7,928	$	0	$	7,928	$	0	$	(1,794	)	$	(800	)
Commercial business	727		0		727		0		(494		)	(160		)
Loans held for sale, net	2,725		0		2,725		0		(536		)	(380		)
Other real estate owned	4,072		0		4072		0		(2,433		)	(1,611		)

			Fair Value Measurements at the End of the Reporting Period Using
	December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses) for the Twelve Months Ended December 31, 2011
	(In thousands)
Assets:
Impaired loans at fair value:
Real estate loans	$	15,485	$	0	$	15,485	$	0	$	(6,018	)
Commercial business	6,360		0		6360		0		(2,553		)
Loans held for sale, net	6,901		0		6,901		0		(3,393		)
Other real estate owned	3,471		0		3471		0		(1,031		)

Fair Value of Financial Instruments

Carrying amounts and estimated fair values of financial instruments, not previously presented, at September 30, 2012 and December 31, 2011 were as follows:

	September 30, 2012
	Carrying Amount		Estimated Fair Value		Fair Value Measurement Using
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	229,643	$	229,643	Level 1
Term federal funds sold	0		0		Level 1
Loans held for sale	58,484		64,501		Level 2
Loans receivable—net	4,003,542		4,301,334		Level 3
Federal Home Loan Bank stock	23,500		N/A		N/A
Accrued interest receivable	12,881		12,881		Level 2
FDIC loss share receivable	7,325		7,325		Level 3
Customers’ liabilities on acceptances	10,373		10,373		Level 2
Financial Liabilities:
Noninterest-bearing deposits	$	1,105,161	$	1,105,161	Level 2
Saving and other interest bearing demand deposits	1,331,013		1,331,013		Level 2
Time deposits	1,616,350		1,611,240		Level 2
Borrowings from Federal Home Loan Bank	460,815		458,392		Level 2
Subordinated debentures	41,809		32,822		Level 2
Accrued interest payable	5,451		5,451		Level 2
Bank’s liabilities on acceptances outstanding	10,373		10,373		Level 2
	December 31, 2011
	Carrying Amount		Estimated Fair Value
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	300,110	$	300,110
Term federal funds sold	40,000		40,000
Loans held for sale	42,407		43,782
Loans receivable—net	3,676,874		3,933,710
Federal Home Loan Bank stock	27,373		N/A
Accrued interest receivable	13,439		13,439
FDIC loss share receivable	10,819		10,819
Customers’ liabilities on acceptances	10,515		10,515
Financial Liabilities:
Noninterest-bearing deposits	984,350		984,350
Saving and other interest bearing demand deposits	1,435,441		1,435,441
Time deposits	1,521,101		1,532,152
Borrowings from Federal Home Loan Bank	344,402		349,311
Subordinated debentures	52,102		53,757
Accrued interest payable	6,519		6,519
Bank’s liabilities on acceptances outstanding	10,515		10,515

The methods and assumptions used to estimate fair value are described as follows.

The carrying amount is the estimated fair value for cash and cash equivalents, savings and other interest bearing demand deposits, accrued interest receivable and payable, customer’s and Bank’s liabilities on acceptances, non-interest-bearing deposits, short-term debt, secured borrowings, and variable rate loans or deposits that reprice frequently and fully. For fixed rate loans or deposits and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. The allowance for loan losses is considered to be a reasonable estimate of discount for credit quality concerns. Fair value of SBA loans held for sale is based on market quotes. For fair value of non-SBA loans held for sale, see the measurement method discussed previously. Fair value of time deposits and debt is based on current rates for similar financing. It was not practicable to determine the fair value of Federal Reserve Bank stock or Federal Home Loan Bank stock due to restrictions placed on their transferability. The fair value of commitments to fund loans represents fees currently charged to enter into similar agreements with similar remaining maturities and is not presented herein. The fair value of these financial instruments is not material to the consolidated financial statements.