BBCN Bancorp, Inc. (NASDAQ: BBCN) today announced that it has redeemed $122 million of Series A and Series B Preferred Stock issued under the U.S. Treasury’s TARP Capital Purchase Program. The redemption covers 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. On November 30, 2011, the two organizations merged and became the largest Korean American bank in the nation.
Since receiving the TARP investments in fourth quarter 2008, BBCN, including the predecessor companies, has timely paid the U.S. Treasury approximately $24.7 million in preferred stock dividends. On an ongoing basis, the redemption eliminates the quarterly payment of $1.5 million in dividends on these securities.
At March 31, 2012, BBCN exceeded all regulatory capital requirements to be classified as a “well-capitalized” institution. The following table provides the capital ratios as actually reported on March 31, 2012, and on a pro forma basis, as if the TARP redemption had been effective on March 31, 2012.
|Ratio||Actual at 3/31/2012||Pro Forma at 3/31/2012|
|Tier 1 Risk-based Ratio||18.75%||15.85%|
|Total Risk-based Ratio||20.01%||17.11%|
The Company expects to enter into negotiations to repurchase all 858,746.4 BBCN warrants held by the Treasury.
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