Analysts Views Mixed on BBCN Bancorp Inc (NASDAQ:BBCN)

Several analysts have recently weighed in on BBCN Bancorp Inc (NASDAQ:BBCN), issuing notes to investors. Julianna Balicka of Keefe, Bruyette & Woods released a note on the stock 2 ago with a $16.00 price target.

“BBCN is continuing to make progress in its strategy of winning banking business from U.S.-based subsidiaries of South Korean companies. As of June 30, BBCN had $1.15bn of commercial commitments outstanding with a utilization rate of 52%. To support commercial banking efforts from the deposits side, BBCN has business payroll and merchant processing as part of their cash management solutions. In 3Q, looking for increased SBA gains relative to 2Q because originations of the relatively higher level of SBA 7(a) loan originations in 2Q.”

Julianna also added, “The positive impact from mortgage originations is on hold for the near term – the initial roll out did not go as planned, and BBCN is revisiting their approach to improve the processing, under new management for the product line. It’s too early yet to be a contributor to loan growth, but the launch of credit cards has generated 1,000 accounts and positive reception from clients.”

Another analyst at Sandler O’Neill has a Neutral stance on the stock. Aaron James Deer issued a note 2 month ago with a Hold rating on the stock.

“Our target represents 14x our 2016 EPS estimate, which is a discount to regional community bank peers, justified by BBCN’s concentration of commercial real estate loans, higher-cost deposit base and the volatility of its gains on SBA loan sales.”

BBCN Bancorp Inc (NASDAQ:BBCN) is the holding company of BBCN Bank, the largest Korean-American bank in the nation with $7.3 billion in assets as of June 30, 2015. Headquartered in Los Angeles and serving a diverse mix of customers mirroring its communities, BBCN operates 50 branches in California, New York, New Jersey, Illinois, Washington and Virginia; eight loan production offices in Seattle, Denver, Dallas, Atlanta, Northern California, Annandale, Virginia, Portland, Oregon and Fremont, California; and a representative office in Seoul, Korea. BBCN specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and business lending, SBA lending and international trade financing. BBCN Bank is a California-chartered bank and its deposits are insured by the FDIC to the extent provided by law.

On Oct 02, 2015 BBCN Bancorp Inc (NASDAQ:BBCN), +0.19% announced that the company will issue its financial results for the 2015 third quarter after the market closes on Monday, October 19, 2015. A conference call to discuss 2015 third quarter financial results will be held on Tuesday, October 20, 2015 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international), and asking for the “BBCN Bancorp Call.”

 

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