Business Combinations (Tables)

12 Months Ended

Dec. 31, 2013

The consideration paid, the assets acquired, and the liabilities assumed are summarized in the following table:



		(In thousands)
Consideration paid:
	BBCN common stock issued in exchange for Foster common stock	$	2,567
	Cash paid for the redemption of Foster common stock	1,922
	Liability for unredeemed Foster common stock	276
	Total consideration paid	$	4,765

Assets Acquired:
	Cash and cash equivalents	$	42,883
	Investment securities available for sale	4,844
	Loans, net	255,297
	FRB and FHLB stock	1,714
	OREO	14,251
	Premises and equipment	4,733
	Core deposit intangibles	2,763
	Deferred tax assets, net	21,211
	Other assets	2,353
Liabilities Assumed:
	Deposits	(321,596		)
	Borrowings	(18,045		)
	Subordinated debentures	(15,309		)
	Other liabilities	(5,859		)
Total identifiable net assets		$	(10,760	)
Excess of consideration paid over fair value of net assets acquired (goodwill)		$	15,525

The assets and liabilities of Foster were recorded on the consolidated balance sheet at estimated fair value on the acquisition date. The purchase price may change as additional information becomes available and when unredeemed Foster shares are redeemed. The fair values of the net deferred tax assets, loans, and certain liabilities assumed from Foster were provisional and adjustments to the provisional amounts may occur during the measurement period as the Company obtains additional information about the facts and circumstances that existed as of the acquisition date.

The $15.5 million of goodwill recognized in the Foster acquisition represent the future economic benefit arising from the acquisition including the creation of a platform that can support future operations and strengthening the Company's existing presence in the Chicago metropolitan market and expansion into the Virginia market. Goodwill is not amortized for book purposes and is not deductible for tax purposes.

Acquisition of PIB

On February 15, 2013, the Company completed the acquisition of PIB, a Seattle based company, pursuant to an Agreement and Plan of Merger, dated October 22, 2012. The Company acquired PIB in order to increase the Company's presence in terms of branch offices and deposit market share in the Seattle market. PIB's primary subsidiary, Pacific International Bank, a Washington state-chartered bank, operated four bank branches in the Seattle metropolitan area.

In connection with the acquisition, the consideration paid, the assets acquired, and the liabilities assumed are summarized in the following table:



		(In thousands)
Consideration paid:
	BBCN common stock issued	$	8,437
	Cash in lieu of fractional shares paid to PIB stockholders	1
	Redemption of Preferred Stock	7,475
	Total consideration paid	$	15,913

Assets Acquired:
	Cash and cash equivalents	$	25,968
	Investment securities available for sale	7,810
	Loans, net	131,589
	FRB and FHLB stock	1,829
	OREO	3,418
	Deferred tax assets, net	9,886
	Core deposit intangibles	604
	Other assets	2,514
Liabilities Assumed:
	Deposits	(143,665		)
	Borrowings	(14,698		)
	Subordinated debentures	(4,108		)
	Other liabilities	(5,116		)
Total identifiable net assets		$	16,031
Bargain purchase gain		$	118

Fair value of acquired loans

The following table presents loans acquired with deteriorated credit quality as of the date of acquisition:



	Foster		PIB
	(In thousands)
Contractually required principal and interest at acquisition	$	150,430	$	54,462
Contractual cash flows not expected to be collected (nonaccretable discount)	37,447		9,687
Expected cash flows at acquisition	112,983		44,775
Interest component of expected cash flows (accretable discount)	14,928		4,945
Fair value of acquired impaired loans	$	98,055	$	39,830

Pro forma information

The following unaudited combined pro forma information presents the operating results for the year ended December 31, 2013 and 2012, as if the Foster and PIB acquisitions had occurred on January 1, 2012:



	2013		2012
	(In thousands, except share data)
Net Interest income	$	264,040	$	264,669
Net income	$	84,304	$	74,949

Pro forma earnings per share:
Basic	$	1.07	$	0.88
Diluted	$	1.06	$	0.88