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Wilshire Bancorp Reports Net Income of $13.2 Million or $0.17 per Share for First Quarter 2016

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LOS ANGELES, April 18, 2016 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (NASDAQ: WIBC) (the "Company"), the holding company for Wilshire Bank (the "Bank"), today reported net income of $13.2 million, or $0.17 per diluted common share, for the quarter ended March 31, 2016. This compares to net income of $18.6 million, or $0.24 per diluted common share, for the same period of the prior year, and net income of $13.9 million, or $0.18 per diluted common share, for the fourth quarter of 2015.

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "Following a very strong quarter of loan production to end 2015, we saw a lower level of loan demand across all of our business lines to start 2016. We believe this was primarily attributable to the first quarter typically being a seasonally slower period for loan production, as well as the impact of macroeconomic uncertainty that caused borrowers to be more cautious during the first two months of the year. However, market conditions appear to be improving, and we expect to see an increase in loan production as we move into the seasonally stronger periods of the year.

"The pending merger of equals with BBCN Bancorp is proceeding as anticipated and we are looking forward to the opportunities to provide our customers with a superior banking experience as part of the only Super Regional Korean-American bank in the United States," said Mr. Yoo.

Q1 2016 Summary

  • Net income totaled $13.2 million, or $0.17 per diluted common share, for the first quarter of 2016
  • Return on average assets of 1.12% and return on average equity of 9.69% for the first quarter of 2016
  • Net interest margin of 3.54% for the first quarter of 2016, compared to 3.56% for the fourth quarter of 2015
  • Loan originations of $276.1 million during the first quarter of 2016, compared to $502.9 million for the fourth quarter of 2015
  • Loans receivable (net of deferred fees and costs) totaled $3.79 billion at March 31, 2016, a decrease of 1% from $3.82 billion at December 31, 2015
  • Total deposits were $3.85 billion at March 31, 2016, largely unchanged from $3.84 billion at December 31, 2015
  • Demand deposits totaled $1.11 billion at March 31, 2016, an increase of 2% from $1.09 billion at December 31, 2015

STATEMENT OF OPERATIONS

Net interest income before provision for losses on loans and loan commitments totaled $38.9 million for the first quarter of 2016, a decrease of 1.3% from $39.4 million for the fourth quarter of 2015 and an increase of 6.6% from $36.5 million for the first quarter of 2015. Relative to the fourth quarter of 2015, net interest income was negatively impacted by a decrease in net interest margin. 

Net interest margin was 3.54% for the first quarter of 2016, compared to 3.56% for the fourth quarter of 2015, and 3.69% for the first quarter of 2015. The decrease in net interest margin compared to the fourth quarter of 2015 was primarily attributable to a decline in the average yield on loans. Net interest margin compression from the decline in loan yield was partially offset by the increase in net interest margin that resulted from a decrease in lower yielding fed funds sold and others.

Loan yields were 4.61% for the first quarter of 2016, compared to 4.80% for the fourth quarter of 2015, and 4.78% for the first quarter of 2015. The decline in loan yields for the first quarter of 2016, compared to the fourth quarter of 2015, was primarily due to the decline in yield on commercial real estate loans as loans were originated and renewed at rates lower than the existing portfolio.

The total cost of deposits was 0.62% for the first quarter of 2016, compared to 0.61% for the fourth quarter of 2015, and 0.58% for the first quarter of 2015. Compared to the fourth quarter of 2015, the increase in the total cost of deposits was primarily due to a slight increase in interest rates in money market and time deposits.

Non-Interest Income

Total non-interest income was $8.5 million for the first quarter of 2016, compared to $9.5 million for the fourth quarter of 2015, and $15.3 million for the first quarter of 2015.

The Company recognized $2.7 million in gain on sales of loans during the first quarter of 2016, compared to $2.9 million for the fourth quarter of 2015, and $6.8 million for the first quarter of 2015. Gain on sale of loans in the first quarter of 2016 consisted of $1.3 million in gains on sales of SBA loans, $830,000 in gains on sales of residential mortgage loans, and $545,000 in gains from the sale of other loans. The decline in gain on sale of loans for the first quarter of 2016, compared to the previous quarter, was primarily due to a decline in sale of SBA loans, while the decline from the first quarter of 2015 was primarily due to a decline in the gain on sale of non-performing loans and a reduction in SBA loan sales.

Other non-interest income totaled $2.9 million for the first quarter of 2016, compared to $3.7 million for the fourth quarter of 2015 and $5.4 million for the first quarter of 2015. The decrease in other non-interest income compared to the fourth quarter of 2015 was due to a decline in recoveries on acquired assets in addition to a decline in loan servicing income. During the fourth quarter of 2015, the Company had a large increase in recoveries on assets acquired from BankAsiana and Saehan. The decrease in other non-interest income compared to the first quarter of 2015 was due to the decline in income recorded from the change in the fair value of the Company's servicing asset and to a lesser extent a decline in income recorded from the fair value change of mortgage derivatives.

Non-Interest Expense

Total non-interest expense was $26.7 million for the first quarter of 2016, compared with $26.6 million for the fourth quarter of 2015, and $22.9 million for the first quarter of 2015. Non-interest expense in the first quarter of 2016 included $458,000 in merger-related costs consisting of mostly legal expenses related to the planned merger of equals with BBCN.

Total salaries and employee benefits expense was $14.8 million for the first quarter of 2016, compared to $13.7 million for the fourth quarter of 2015, and $12.7 million for the first quarter of 2015. The increase in salaries and employee benefits for the first quarter of 2016 compared to the fourth quarter of 2015 was primarily due to an increase in stock-based compensation expense, incentive compensation, and commissions.

The Company's operating efficiency ratio was 56.3% for the first quarter of 2016, compared with 54.3% for the fourth quarter of 2015, and 44.3% for the first quarter of 2015.

BALANCE SHEET

Total loans receivable (net of deferred fees and costs) were $3.79 billion at March 31, 2016, compared to $3.82 billion at December 31, 2015. During the first quarter of 2016, a decrease in commercial real estate and commercial and industrial loans was partially offset by an increase in construction loans. Total loans held-for-sale increased to $90.4 million at March 31, 2016, from $25.2 million at December 31, 2015, due to an increase in both residential mortgage and SBA loans held-for-sale.

The following table shows total loans receivable, loans held-for-sale, and total loans by loan type:

  Quarter Ended
(Dollars In Thousands) (Unaudited) March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
           
Construction $36,181  $19,541  $18,146  $16,050  $26,117 
Real Estate Secured  2,962,964   2,992,824   2,810,420   2,723,458   2,701,800 
Commercial & Industrial  783,487   792,243   789,422   765,655   769,438 
Consumer  12,304   15,096   13,284   14,622   15,465 
Total Loans Receivable *  3,794,936   3,819,704   3,631,272   3,519,785   3,512,820 
Loans Held-For-Sale  90,392   25,223   13,316   25,269   10,204 
Total Loans * $3,885,328  $3,844,927  $3,644,588  $3,545,054  $3,523,024 
           
* Total loans receivable and total loans are net of deferred fees and costs as shown in the consolidated balance sheet presentation.
 

The following table shows quarterly loan originations:                                                                           

  Quarter Ended 
(Dollars In Thousands) (Unaudited) March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015 
                      
Real Estate Secured $127,145   46% $273,613   54% $176,605   43% $121,066   41% $138,145   35% 
Commercial & Industrial  34,268   12%  94,128   19%  107,952   26%  46,438   16%  59,837   15% 
Consumer     0%  55   0%  360   0%  124   0%  1,640   0% 
SBA  26,801   10%  37,897   8%  21,871   5%  25,648   9%  31,718   8% 
Residential Mortgage  87,866   32%  95,159   19%  102,383   25%  89,652   31%  11,357   3% 
Warehouse Lines of Credit*     0%  2,000   0%  7,000   1%  10,000   3%  155,000   39% 
Total Loan Originations $276,080   100% $502,852   100% $416,171   100% $292,928   100% $397,697   100% 
                      
* Warehouse lines of credit are reported as commercial and industrial loans on the consolidated balance sheet.
 

Originations for the first quarter of 2016 totaled $276.1 million, compared to $502.9 million for the fourth quarter of 2015, and $397.7 million for the first quarter of 2015. The decrease in loan originations for the three months ended March 31, 2016, compared to the previous quarter, was due to weaker loan demand experienced during the first quarter of 2016 due to seasonality and other market factors.

Total SBA loans held-for-sale at the end of the first quarter of 2016 were $11.6 million, compared to $5.5 million at the end of the previous quarter. Residential mortgage loans held-for-sale at the end of the first quarter of 2016 were $78.0 million, compared to $19.7 million at the end of the previous quarter.

Total deposits were $3.85 billion at March 31, 2016, compared with $3.84 billion at December 31, 2015, with increases in lower-cost deposit categories offsetting declines in time deposits.

CREDIT QUALITY

During the first quarter of 2016 the Company set aside $300,000 in provision for losses on loans and loan commitments.

The allowance for loan losses totaled $52.7 million, or 1.38% of gross loans (excluding loans held-for-sale), at March 31, 2016, compared to $52.4 million, or 1.37% of gross loans (excluding loans held-for-sale), at December 31, 2015. The coverage ratio of the allowance for loan losses to non-performing assets was 149.08% at March 31, 2016, compared with 169.74% at December 31, 2015.

Special mention loans, or criticized loans totaled $161.1 million at March 31, 2016, compared to $120.0 million at December 31, 2015. The increase in criticized loans at March 31, 2016 compared to December 31, 2015 was primarily due to one borrower with two commercial loans totaling $26.0 million. The commercial loans were transferred to the criticized category in the first quarter of 2016 due to temporary deterioration in the borrower's financial performance, but the Company does not expect any losses to be incurred on these commercial loans at this time. Total classified loans at March 31, 2016 was $85.2 million, compared to $80.4 million at December 31, 2015.

Non-Performing Loans

At March 31, 2016, total non-performing loans were $25.2 million, or 0.65% of total gross loans, compared to $21.7 million, or 0.56% of total gross loans, at December 31, 2015.

The following table shows total non-performing loans by loan type:

NON-PERFORMING LOANS Quarter Ended
(Dollars In Thousands) (Unaudited) Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
(Net of SBA Guaranty Portions)          
Real Estate Secured $20,007  $15,422  $20,123  $23,235  $25,329 
Commercial & Industrial  5,194   6,272   7,058   7,617   7,193 
Total Non-Performing Loans $25,201  $21,694  $27,181  $30,852  $32,522 
           

Net Charge-offs/Recoveries

During the first quarter of 2016, the Company had total gross charge-offs of $598,000, and recoveries of $361,000, which resulted in net charge-offs of $237,000, compared to net recoveries of $2.3 million for the fourth quarter of 2015.

Gross charge-offs and recoveries by loan type are reflected in the tables below:

GROSS LOAN CHARGE-OFFS Quarter Ended 
(Dollars In Thousands) (Unaudited) Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
           
Real Estate Secured $219  $13  $605  $249  $325 
Commercial & Industrial  379   1,392   1,270   310   999 
Total Loan Charge-Offs $598  $1,405  $1,875  $559  $1,324 
           



LOAN RECOVERIES Quarter Ended 
(Dollars In Thousands) (Unaudited) Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
           
Real Estate Secured $46  $3,242  $1,867  $970  $193 
Commercial & Industrial  315   452   803   240   667 
Consumer              10 
Total Loan Recoveries $361  $3,694  $2,670  $1,210  $870 
           

Other measures of credit quality are shown in the following tables:

DELINQUENT  LOANS -  By Days Past Due  Quarter Ended
(Dollars In Thousands) (Unaudited) Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
(Net of SBA Guaranty Portions)          
30 - 59 Days Past Due $3,608  $4,315  $4,911  $3,615  $7,375 
60 - 89  Days Past Due  1,491   1,643   1,143   7,576   421 
90 Days, and still accruing               
Total Delinquent Loans $5,099  $5,958  $6,054  $11,191  $7,796 
           

          

TROUBLED DEBT RESTRUCTURED LOANS ("TDR") Quarter Ended
(Dollars In Thousands) (Unaudited) Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
(Net of SBA Guaranty Portions)          
Real Estate Secured $23,376  $22,311  $24,188  $29,424  $28,612 
Commercial & Industrial  15,015   15,681   16,578   13,469   11,682 
Total TDR Loans $38,391  $37,992  $40,766  $42,893  $40,294 
           



LOAN CLASSIFICATIONS Quarter Ended
(Dollars In Thousands) (Unaudited) Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
(Net of SBA Guaranty Portions)          
Special Mention $161,119  $120,019  $118,290  $86,118  $81,049 
Substandard  85,193   80,310   82,000   96,666   89,402 
Doubtful  41   41   2,182   5,301   9,822 
Total Criticized and Classified Loans $246,353  $200,370  $202,472  $188,085  $180,273 
           
Total Classified Loans $85,234  $80,351  $84,182  $101,967  $99,224 
           

CAPITAL RATIOS

As of March 31, 2016, all of the Company's capital ratios remain in excess of "well capitalized" regulatory requirements as shown in the following table: 

(Dollars In Thousands, Except Per Share Info) March 31, 2016  Well Capitalized
Regulatory Requirements
 Total Excess Above Well
Capitalized Requirements
Tier 1 Leverage Capital Ratio  11.67% 5.00% 308,094
Tier 1 Common Equity Risk-Based Capital Ratio  11.47% 6.50% 203,480
Tier 1 Risk-Based Capital Ratio  13.17% 8.00% 211,646
Total Risk-Based Capital Ratio  14.42% 10.00% 180,972
Tangible Common Equity To Tangible Assets *  10.23% N/A  N/A
Tangible Common Equity Per Common Share * $  6.03  N/A  N/A
          
* "Tangible Common Equity" and "Tangible Assets" are Non-GAAP measures of financial performance. Please refer to the "Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures" table at the end of this press release for a reconciliation of Tangible Common Equity to Shareholders' Equity and Tangible Assets to Total Assets.  
 

CONFERENCE CALL                   

Management will host its quarterly conference call on April 19, 2016, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing toll-free 888-298-2143 (domestic) or 503-406-4050 (international) and providing passcode number 83078775.

ABOUT WILSHIRE BANCORP

Headquartered in Los Angeles, Wilshire Bancorp is the parent company of Wilshire Bank, which operates 35 branch offices in California, Texas, Alabama, Georgia, New Jersey, and New York. Wilshire Bancorp also operates five loan production offices of which four are utilized primarily for the origination of loans under the Small Business Administration lending program located in Colorado, Georgia, and Washington, and two that are utilized primarily for the origination of residential mortgage loans located in California. Wilshire Bank is a community bank with a focus on commercial real estate lending and general commercial banking, with its primary markets encompassing the multi-ethnic populations of the Los Angeles, New York, New Jersey, and Texas. For more information, please go to www.wilshirebank.com.

ABOUT BBCN BANCORP, INC.

BBCN Bancorp, Inc. is the holding company of BBCN Bank, the largest Korean-American bank in the nation. 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. BBCN is an Equal Opportunity Lender.

ADDITIONAL INFORMATION ABOUT MERGER AND WHERE TO FIND IT

In connection with the proposed merger, BBCN has filed with the SEC a preliminary Registration Statement on Form S-4 that includes a Joint Proxy Statement/Prospectus of Wilshire and BBCN, as well as other relevant documents concerning the proposed transaction. Shareholders are urged to read the preliminary Registration Statement and the Joint Proxy Statement/Prospectus regarding the merger and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they contain important information. You will be able to obtain a free copy of the Joint Proxy Statement/Prospectus, as well as other filings containing information about Wilshire Bancorp and BBCN Bancorp at the SEC's Internet site (www.sec.gov). You will also be able to obtain these documents, free of charge, from BBCN at www.BBCNbank.com in the "Investor Relations" section under the "About" tab, or from Wilshire Bancorp at www.wilshirebank.com in the "Investor Relations" section under the "About Wilshire Bank" tab.

PARTICIPANTS IN SOLICITATION

Wilshire Bancorp and BBCN Bancorp and their respective directors, executive officers, management and employees may be deemed to be participants in the solicitation of proxies in respect of the merger. Information concerning Wilshire Bancorp's participants is set forth in the proxy statement, dated April 9, 2015, for Wilshire Bancorp's 2015 annual meeting of stockholders as filed with the SEC on Schedule 14A. Information concerning BBCN Bancorp's participants is set forth in the proxy statement, dated May 1, 2015, and supplemental proxy materials, dated May 20, 2015, for BBCN Bancorp's 2015 annual meeting of stockholders, as filed with the SEC on Schedules 14A. Additional information regarding the interests of participants of BBCN and Wilshire in the solicitation of proxies in respect of the merger is included in the preliminary Registration Statement and Joint Proxy Statement/Prospectus filed with the SEC.

FORWARD-LOOKING STATEMENTS

This press release contains statements regarding the proposed transaction between Wilshire Bancorp and BBCN Bancorp. These statements are based on current expectations, estimates, forecasts and projections and management assumptions about the future performance of each of BBCN Bancorp, Wilshire Bancorp and the combined company, as well as the businesses and markets in which they do and are expected to operate. These statements constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as "expects," "believes," "estimates," "anticipates," "targets," "goals," "projects," "intends," "plans, "seeks," and variations of such words and similar expressions are intended to identify such forward-looking statements which are not statements of historical fact. These forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to assess. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The closing of the proposed transaction is subject to regulatory approvals, the approval of the shareholders of both Wilshire Bancorp and BBCN Bancorp, and other customary closing conditions. There is no assurance that such conditions will be met or that the proposed transaction will be consummated within the expected time frame, or at all. If the transaction is consummated, factors that may cause actual outcomes to differ from what is expressed or forecasted in these forward-looking statements include, among things: difficulties and delays in integrating Wilshire Bancorp and BBCN Bancorp and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; deposit attrition, operating costs, customer loss and business disruption following the merger, including difficulties in maintaining relationships with employees, may be greater than expected; required governmental approvals of the merger may not be obtained on its proposed terms and schedule, or without regulatory constraints that may limit growth; competitive pressures among depository and other financial institutions may increase significantly and have an effect on revenues; the strength of the United States economy in general, and of the local economies in which the combined company will operate, may be different than expected, which could result in, among other things, a deterioration in credit quality or a reduced demand for credit and have a negative effect on the combined company's loan portfolio and allowance for loan losses; changes in the U.S. legal and regulatory framework; and adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) which would negatively affect the combined company's business and operating results.

For a more complete list and description of such risks and uncertainties, refer to Wilshire Bancorp's Form 10-K for the year ended December 31, 2015, and BBCN Bancorp's Form 10-K for the year ended December 31, 2015, as well as other filings made by Wilshire Bancorp and BBCN Bancorp with the SEC. Except as required under the U.S. federal securities laws and the rules and regulations of the SEC, Wilshire Bancorp and BBCN Bancorp disclaim any intention or obligation to update any forward-looking statements after the distribution of this press release, whether as a result of new information, future events, developments, changes in assumptions or otherwise.                          

CONSOLIDATED BALANCE SHEET          
(Dollars In Thousands) (Unaudited) March 31, December 31, Three Months March 31, Twelve Months
  2016

 2015

 % Change 2015

 % Change
ASSETS:          
Cash and due from banks $115,444  $118,089   -2% $353,438   -67%
Federal funds sold and other cash equivalents  133   104   28%  164   -19%
Total Cash and Cash Equivalents  115,577   118,193   -2%  353,602   -67%
           
Deposits held in other financial institutions        0%  8,000   -100%
           
Investment securities available for sale  512,257   535,524   -4%  329,343   56%
Investment securities held to maturity  19   21   -10%  25   -24%
Total Investment Securities  512,276   535,545   -4%  329,368   56%
           
Total Loans Held-For-Sale  90,392   25,223   258%  10,204   786%
           
Real estate construction  36,181   19,541   85%  26,117   39%
Residential real estate  226,960   269,117   -16%  171,117   33%
Commercial real estate  2,736,004   2,723,707   0%  2,530,683   8%
Commercial and industrial  783,487   792,243   -1%  769,438   2%
Consumer  12,304   15,096   -18%  15,465   -20%
Total loans receivable, net of deferred fees and costs  3,794,936   3,819,704   -1%  3,512,820   8%
Allowance for loan losses  (52,668)  (52,405)  1%  (48,170)  9%
Loans Receivable, Net of Allowance for Loan Losses  3,742,268   3,767,299   -1%  3,464,650   8%
           
Accrued interest receivable  9,171   9,226   -1%  8,581   7%
Due from customers on acceptances  8,900   7,250   23%  6,472   38%
Other real estate owned  10,128   9,179   10%  7,411   37%
Premises and equipment  15,718   16,096   -2%  14,058   12%
Federal home loan bank (FHLB) stock, at cost  16,539   16,539   0%  16,539   0%
Cash surrender value of life insurance  25,174   25,028   1%  23,470   7%
Investment in affordable housing partnerships  47,257   48,867   -3%  43,134   10%
Deferred income taxes  17,897   21,489   -17%  16,646   8%
Servicing assets  19,324   19,894   -3%  19,813   -2%
Goodwill  67,473   67,473   0%  67,473   0%
Other assets  22,307   26,167   -15%  23,857   -6%
TOTAL ASSETS $4,720,401  $4,713,468   0% $4,413,278   7%
           
LIABILITIES AND SHAREHOLDERS' EQUITY:          
Non-interest bearing demand deposits $1,106,805  $1,088,436   2% $997,803   11%
Savings and interest checking  173,557   172,038   1%  161,234   8%
Money market deposits  993,733   977,697   2%  886,092   12%
Time deposits in denomination of $100,000 or more  1,336,311   1,349,440   -1%  1,322,743   1%
Other time deposits  243,166   252,265   -4%  267,294   -9%
Total Deposits  3,853,572   3,839,876   0%  3,635,166   6%
           
FHLB borrowings  200,000   220,000   -9%  150,000   33%
Acceptance outstanding  8,900   7,250   23%  6,472   38%
Junior subordinated debentures  72,077   72,016   0%  71,837   0%
Accrued interest payable  2,400   2,105   14%  2,406   0%
Other liabilities  37,204   39,291   -5%  41,818   -11%
Total Liabilities  4,174,153   4,180,538   0%  3,907,699   7%
           
Common stock  234,386   233,341   0%  232,207   1%
Retained earnings  304,763   296,303   3%  267,660   14%
Accumulated other comprehensive income  7,099   3,286   116%  5,712   24%
Total Shareholders' Equity  546,248   532,930   2%  505,579   8%
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $4,720,401  $4,713,468   0% $4,413,278   7%
           



CONSOLIDATED STATEMENT OF OPERATIONS        
(Dollars In Thousands, Except Per Share Data) (Unaudited)        
  Quarter Ended Three Mths Quarter Ended Twelve Mths

  March 31, 2016 December 31, 2015 % Change March 31, 2015 % Change
           
INTEREST INCOME          
Interest and fees on loans $43,665 $43,797 0% $40,088 9%
Interest on investment securities  2,460  2,626 -6%  1,968 25%
Interest on federal funds sold and others  124  228 -46%  192 -35%
Total Interest Income  46,249  46,651 -1%  42,248 9%
           
INTEREST EXPENSE          
Deposits  5,932  5,945 0%  5,097 16%
FHLB advances and other borrowings  1,408  1,287 9%  660 113%
Total Interest Expense  7,340  7,232 1%  5,757 27%
           
Net interest income before provision for losses on loans and loan commitments  38,909  39,419 -1%  36,491 7%
Provision for losses on loans and loan commitments  300   0%   0%
           
Net interest income after provision for losses on loans and loan commitments  38,609  39,419 -2%  36,491 6%
           
NONINTEREST INCOME          
Service charges on deposits  2,851  2,903 -2%  3,107 -8%
Gain on sale of SBA loans  1,297  1,958 -34%  2,245 -42%
Gain on sale of residential loans  830  898 -8%  261 218%
Gain on sale of other loans  545  62 779%  4,300 -87%
Other  2,935  3,725 -21%  5,354 -45%
Total Noninterest Income  8,458  9,546 -11%  15,267 -45%
           
NONINTEREST EXPENSES          
Salaries and employee benefits  14,783  13,676 8%  12,665 17%
Occupancy and equipment  3,276  3,390 -3%  3,373 -3%
Data processing  1,204  1,156 4%  1,042 16%
Merger-related costs  458  994 -54%   0%
Other  6,932  7,348 -6%  5,829 19%
Total Noninterest Expenses  26,653  26,564 0%  22,909 16%
           
Income before income taxes  20,414  22,401 -9%  28,849 -29%
Income taxes provision  7,224  8,453 -15%  10,230 -29%
NET INCOME  $13,190 $13,948 -5% $18,619 -29%
           
PER COMMON SHARE INFORMATION:          
Basic income per common share $0.17 $0.18 -6% $0.24 -29%
Diluted income per common share $0.17 $0.18 -5% $0.24 -29%
           
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:          
Basic  78,674,604  78,601,082    78,326,505  
Diluted  78,974,448  78,942,078    78,655,365  



SUMMARY OF FINANCIAL DATA             
(Dollars In Thousands, Except Per Share Data) (Unaudited)          
             
     
  Quarter Ended  
AVERAGE BALANCES March 31, 2016   December 31, 2015   March 31, 2015  
Average Assets $4,698,333    $4,728,510    $4,255,625   
Average Equity  544,527     534,938     500,097   
Average Net Loans  3,789,591     3,650,672     3,352,433   
Average Deposits  3,833,838     3,922,849     3,490,282   
Average Time Deposits of $100,000 or more  1,342,858     1,407,298     1,297,961   
Average FHLB & Other Borrowings  201,209     151,848     150,655   
Average Interest Earning Assets  4,417,456     4,445,026     3,976,435   
             
             
     
  Quarter Ended  
PROFITABILITY March 31, 2016   December 31, 2015   March 31, 2015  
Annualized Return on Average Assets  1.12%    1.18%    1.75%  
Annualized Return on Average Equity  9.69%    10.43%    14.89%  
Efficiency Ratio  56.27%    54.25%    44.26%  
Annualized Operating Expense/Average Assets  2.27%    2.25%    2.15%  
Annualized Net Interest Margin  3.54%    3.56%    3.69%  
             
             
   
  As Of
DEPOSIT COMPOSITION  March 31, 2016 Cost of
Funds
 December 31, 2015 Cost of
Funds
 March 31, 2015 Cost of
Funds
Noninterest Bearing Demand Deposits  28.7%  0.00%  28.3%  0.00%  27.4%  0.00%
Savings & Interest Checking  4.5%  1.25%  4.5%  1.26%  4.4%  1.31%
Money Market Deposits  25.8%  0.71%  25.5%  0.69%  24.4%  0.67%
Time Deposits of $100,000 or More  34.7%  0.91%  35.1%  0.89%  36.4%  0.80%
Other Time Deposits  6.3%  0.92%  6.6%  0.91%  7.4%  0.86%
Total Deposits  100.0%  0.62%  100.0%  0.61%  100.0%  0.58%
     
     
     
  As Of  
CAPITAL RATIOS March 31, 2016   December 31, 2015   March 31, 2015  
Tier 1 Leverage Ratio  11.67%    11.30%    11.86%  
Tier 1 Common Equity Risk-Based Capital Ratio  11.47%    11.23%    11.58%  
Tier 1 Risk-Based Capital Ratio  13.17%    12.86%    13.38%  
Total Risk-Based Capital Ratio  14.42%    14.11%    14.64%  
Total Shareholders' Equity $546,248    $532,930    $505,579   
Book Value Per Common Share $6.93    $6.78    $6.45   
Tangible Common Equity Per Common Share * $6.03    $5.88    $5.54   
Tangible Common Equity to Tangible Assets *  10.23%    9.96%    10.00%  
* Excludes goodwill and other intangible assets
 



ALLOWANCE FOR LOAN LOSSES
(Dollars In Thousands) (Unaudited)   
  Quarter Ended
  March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
           
Balance at beginning of period $52,405  $50,116  $48,821  $48,170  $48,624 
Provision for losses on loans  500      500        
Recoveries on loans previously charged-off  361   3,694   2,670   1,210   870 
Gross loan charge-offs  (598)  (1,405)  (1,875)  (559)  (1,324)
Balance at end of period $52,668  $52,405  $50,116  $48,821  $48,170 
           
Net Loan Charge-offs / Average Net Loans  0.01%  -0.06%  -0.02%  -0.02%  0.01%
Charge-offs / Average Total Loans  0.02%  0.04%  0.05%  0.02%  0.04%
Allowance for Loan Losses / Gross Loans*  1.38%  1.37%  1.38%  1.38%  1.37%
Allowance for Loan Losses / Non-accrual Loans  208.99%  241.56%  184.38%  158.24%  148.12%
Allowance for Loan Losses / Non-performing Loans  208.99%  241.56%  184.38%  158.24%  148.12%
Allowance for Loan Losses / Non-performing Assets  149.08%  169.74%  130.23%  130.50%  120,63%
Allowance for Loan Losses / Classified Loans  61.79%  65.22%  59.53%  47.88%  48.55%
           
* Excludes held-for-sale loans          
           
           
NON-PERFORMING ASSETS
(Dollars In Thousands, Net of SBA Guaranty)  Quarter Ended 
(Unaudited) March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
           
Non-accrual loans $25,201  $21,694  $27,181  $30,852  $32,522 
Loans 90 days or more past due and still accruing                
Total Non-performing Loans  25,201   21,694   27,181   30,852   32,522 
           
Total OREO  10,128   9,179   11,302   6,559   7,411 
Total Non-performing Assets $35,329  $30,873  $38,483  $37,411  $39,933 
           
Total Non-performing Loans/Gross Loans  0.65%  0.56%  0.74%  0.87%  0.92%
Total Non-performing Assets/Total Assets  0.75%  0.65%  0.81%  0.81%  0.90%
           
           
           
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS
(Dollars In Thousands) (Unaudited)          
  Quarter Ended    
  March 31, 2016 December 31, 2015 March 31, 2015    
           
Balance at beginning of period $1,261  $1,261  $1,061     
Provision for losses on loan commitments  (200)          
Balance at end of period $1,061  $1,261  $1,061     
           



WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
  For the Quarter Ended
  March 31, 2016 December 31, 2015

 March 31, 2015
         
  AverageInterest Average AverageInterest Average AverageInterest Average
INTEREST EARNING ASSETS BalanceIncome/ Yield/ BalanceIncome/ Yield/ BalanceIncome/ Yield/
  Expense Rate  Expense Rate  Expense Rate
                
LOANS:               
Real Estate Loans $3,050,251 $35,025   4.59% $2,904,530 $34,851   4.80% $2,732,436 $32,565   4.77%
Commercial Loans  737,336  7,486   4.06%  743,686  7,662   4.12%  616,848  6,282   4.07%
Consumer Loans  12,522  86   2.75%  12,650  96   3.04%  13,141  116   3.53%
Total Gross Loans  3,800,109  42,597   4.48%  3,660,866  42,609   4.66%  3,362,425  38,963   4.64%
Deferred Fees and Costs \ Loan Fees  (10,518) 1,068     (10,194) 1,188     (9,992) 1,125   
Total Loans *  3,789,591  43,665   4.61%  3,650,672  43,797   4.80%  3,352,433  40,088   4.78%
                
INVESTMENT SECURITIES AND                
OTHER INTEREST-EARNING ASSETS:               
Investment Securities**  529,552  2,460   1.97%  496,571  2,626   2.24%  359,302  1,968   2.38%
Deposits Held In Other Institutions       0.00%  4,223  22   2.08%  8,000  32   1.60%
Federal Funds Sold & Others  98,313  124   0.50%  293,560  206   0.28%  256,700  160   0.25%
Total Investment Securities and               
  Other Earning Assets  627,865  2,584   1.74%  794,354  2,854   1.51%  624,002  2,160   1.49%
                
TOTAL INTEREST-EARNING ASSETS $4,417,456 $46,249   4.20% $4,445,026 $46,651   4.21% $3,976,435 $42,248   4.27%
                
Total Non-Interest Earning Assets  280,877      283,484      279,190    
TOTAL ASSETS $4,698,333     $4,728,510     $4,255,625    
                
INTEREST BEARING LIABILITIES               
                
INTEREST-BEARING DEPOSITS:               
Money Market $1,008,081 $1,787   0.71% $982,301 $1,684   0.69% $844,576 $1,406   0.67%
NOW  37,936  25   0.26%  34,586  23   0.27%  29,230  17   0.23%
Savings  134,064  511   1.53%  132,186  504   1.53%  129,239  502   1.55%
Time Deposits of $100,000 or More  1,342,858  3,044   0.91%  1,407,298  3,132   0.89%  1,297,961  2,603   0.80%
Other Time Deposits  246,197  565   0.92%  263,322  602   0.91%  265,626  569   0.86%
Total Interest Bearing Deposits  2,769,136  5,932   0.86%  2,819,693  5,945   0.84%  2,566,632  5,097   0.79%
                
BORROWINGS:               
FHLB Advances and Other Borrowings  201,209  905   1.80%  151,848  828   2.18%  150,655  232   0.62%
Junior Subordinated Debentures  72,037  503   2.79%  71,976  459   2.55%  71,799  428   2.38%
Total Borrowings  273,246  1,408   2.06%  223,824  1,287   2.30%  222,454  660   1.19%
                
TOTAL INTEREST BEARING LIABILITIES $3,042,382 $7,340   0.97% $3,043,517 $7,232   0.95% $2,789,086 $5,757   0.83%
                
Non-Interest Bearing Deposits  1,064,702      1,103,156      923,650    
Other Liabilities  46,722      46,899      42,792    
Shareholders' Equity  544,527      534,938      500,097    
TOTAL LIABILITIES AND EQUITY $4,698,333     $4,728,510     $4,255,625    
                
NET INTEREST INCOME  $38,909     $39,419     $36,491   
.               
NET INTEREST SPREAD     3.24%     3.26%     3.44%
                
NET INTEREST MARGIN     3.54%     3.56%     3.69%
                
* Allowance for loan losses excluded from average total loans and earning assets

** Tax equivalent ratios for investment securities
                



RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES:
 
TANGIBLE COMMON EQUITY AND TANGIBLE ASSETS *
(Dollars In Thousands, Except Share Data) (Unaudited)
 Quarter Ended
 March 31, 2016 December 31, 2015 March 31, 2015
      
Total shareholders' equity$546,248  $532,930  $505,579 
Goodwill and other intangible assets, net (70,458)  (70,658)  (71,385)
Tangible common equity$475,790  $462,272  $434,194 
      
Total assets$4,720,401  $4,713,468  $4,413,278 
Goodwill and other intangible assets, net (70,458)  (70,658)  (71,385)
Tangible assets$4,649,943  $4,642,810  $4,341,893 
      
Common shares outstanding 78,845,873   78,608,717   78,329,458 
      
 
Tangible Common Equity and Tangible Assets are Non-GAAP financial measures. Management believes that presentation of non-GAAP financial information included in this press release are meaningful and useful in understanding the business metrics of the Company's operations. We provide non-GAAP financial information for informational purposes and to enhance an understanding of the Company's GAAP consolidated financial statements. Readers should consider this non-GAAP information in addition to, but not instead or as superior to, the Company's financial statements in accordance with GAAP. Non-GAAP financial information presented by us may be determined or calculated differently by other companies, limiting the usefulness of non-GAAP measures for comparative purposes.
 
WILSHIRE BANCORP, INC. Alex Ko, EVP & CFO, (213) 427-6560 www.wilshirebank.com
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