BBCN Bancorp, Inc. (BBCN)

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Quarterly Report (10-Q) ending Sept. 30th, 2011

CAPITAL RESOURCES

Shareholders’ equity as of September 30, 2011 was $294.7 million, compared to $274.0 million as of December 31, 2010. The increase was due primarily to net earnings of $19.2 million in the first nine months of 2011. The primary sources of capital have historically been retained earnings and relatively nominal proceeds from the exercise of employee incentive and/or nonqualified stock options. There were 7,192 option shares exercised during the first nine months of 2011. Shareholders’ equity is also affected by changes in unrealized losses on available-for-sale securities.

As part of the TARP Capital Purchase Program, the Company entered into a purchase agreement with the Treasury Department on December 12, 2008, pursuant to which the Company issued and sold 55,000 shares of fixed-rate cumulative perpetual preferred stock for a purchase price of $55.0 million and 10-year warrants to purchase 864,780 shares of the Company’s common stock at an exercise price of * $9.54 per share. The number of shares underlying the Warrant was reduced to 432,390 effective December 31, 2009 as a result of capital raises during 2009. The Company will pay the Treasury Department a five percent dividend annually for each of the first five years of the investment and a nine percent dividend thereafter until the shares are redeemed.

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* Note: PPS 3 years after the Treasury bought common shares via TARP for $9.54 is $6.95 on 11/12/2011.