BBCN Bancorp Earnings Call Insights: Excess Capital and Decline in Purchase Account Accretion
BBCN Bancorp Inc (NASDAQ:BBCN) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.
Aaron Deer – Sandler O’Neill & Partners: Let me begin Al wishing you congratulations on just really having done a marvelous job over these past few years. It’s been great working with you as well and certainly wish you all the best in your next endeavor. Then if I may, a question for I guess Phil. With so much of the growth coming this quarter in commercial real estate, I’m curious where your current – where that stands now as a percentage of total risk-based capital and how would you characterize your excess capital today? It’s been about the 300% kind of regulatory threshold and what does that give you in terms of ability to continue growing the balance sheet and do acquisitions?
Philip E. Guldeman – EVP and CFO: The specific number I have to get back to you. But in terms of excess capital on an overall basis, we do a pretty comprehensive internal analysis that quantifies five different elements of risk and it shows that we have a substantial amount of capital over and above that which our internal calculations suggest we need, which of course is higher than that required by the regulators to be well-capitalized.
Douglas J. Goddard – Deputy CFO: Aaron, in regards to the CRE concentration we have within the – well below the 300% threshold.
Aaron Deer – Sandler O’Neill & Partners: I understand that. I am just trying to gauge, but that’s partly due the fact that you have a lot of excess capital right now. So, I am just curious how you think about the volume of excess capital which you have and what that were forged you to do in terms of additional balance sheet growth or acquisitions?