Wilshire Bancorp Reports Net Income of $13.1 Million or $0.17 per Share for First Quarter 2014

LOS ANGELES, April 21, 2014 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq:WIBC) (the "Company"), the holding company for Wilshire Bank (the "Bank"), today reported net income available to common shareholders of $13.1 million, or $0.17 per diluted common share, for the quarter ended March 31, 2014. This compares to net income available to common shareholders of $11.6 million, or $0.16 per diluted common share, for the same period of the prior year, and net income available to common shareholders of $10.9 million, or $0.15 per diluted common share, for the fourth quarter of 2013. Financial results for the first quarter of 2014 include $3.4 million in merger-related expenses attributable to the acquisition and integration of BankAsiana and Saehan Bancorp.

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "We are seeing a strong increase in our core earnings power as a result of the acquisitions of BankAsiana and Saehan Bancorp late in 2013. Compared to the first quarter of 2013, our total revenue increased 34%, and our pre-tax, pre-provision income increased by 17%. We are also seeing an improvement in our deposit mix resulting from our focus on developing more core deposit relationships. Our non-interest bearing deposits now represent the largest component of our total deposits, which has resulted in a decline in our cost of funds. We are pleased that the increase in our core earnings power and strong financial position has enabled us to increase the amount of capital we can return to our shareholders, with a 67% increase in our quarterly dividend."

Q1 2014 Summary

  • Net income available to common shareholders totaled $13.1 million, or $0.17 per diluted common share, for the first quarter of 2014
  • Total revenue of $50.3 million, an increase of 34% from the first quarter of 2013
  • Return on average assets of 1.44% and return on average equity of 11.73% for the first quarter of 2014
  • Loans receivable (net of deferred fees and costs) totaled $2.87 billion at March 31, 2014, an increase of 40% from $2.05 billion at March 31, 2013
  • Total deposits were $2.92 billion at March 31, 2014, an increase of 35% from $2.16 billion at March 31, 2013
  • Continued low credit losses and stable trends in assets quality resulted in no provision for losses on loans and loan commitments for Q1 2014
  • Quarterly cash dividend payable on April 15, 2014 increased to $0.05 per common share

STATEMENT OF OPERATIONS

Pre-Tax, Pre-Provision Income

Pre-tax, pre-provision income ("PTPP") was $19.9 million for the first quarter of 2014, compared with $17.0 million for the first quarter of 2013, and $17.0 million for the fourth quarter of 2013. Excluding merger-related expenses, PTPP was $23.3 million for the first quarter of 2014, compared with $18.8 million for the fourth quarter of 2013. PTPP is a Non-GAAP measure 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 PTPP to net income and important information about Non-GAAP measures of financial performance.

Net Interest Income and Margin

Net interest income before provision for losses on loans and loan commitments totaled $35.2 million for the first quarter of 2014, an increase of 38% from $25.6 million for the first quarter of 2013, and an increase of 9% from $32.3 million for the fourth quarter of 2013. The increase from the prior quarter is primarily attributable to the full quarter impact of the acquisitions of Saehan Bancorp and BankAsiana.

Net interest margin was 4.22% for the first quarter of 2014, compared to 4.20% for the fourth quarter of 2013, and 3.99% for the first quarter of 2013. Excluding the effect of the amortization/accretion of the purchase accounting adjustments, the net interest margin was approximately 3.85% for the first quarter of 2014, compared with 3.91% for the fourth quarter of 2013. The decline in net interest margin is primarily attributable to a decline in average yield on loans, excluding the effects of purchase accounting adjustments.

Loan yields were 5.15% for the first quarter of 2014, compared with 5.17% for the fourth quarter of 2013, and 5.06% for the first quarter of 2013. Excluding the effect of the accretion of the purchase accounting adjustments, loan yields were 4.77% for the first quarter of 2014, compared to 4.86% for the fourth quarter of 2013.

The total cost of deposits was 0.51% for the first quarter of 2014, compared with 0.53% for the fourth quarter of 2013, and 0.53% for the first quarter of 2013.

Non-Interest Income

Total non-interest income was $11.0 million for the first quarter of 2014, compared to $8.7 million for the first quarter of 2013, and $9.3 million for the fourth quarter of 2013. The increase from the prior quarter was primarily due to a higher net gain on sale of loans and a higher level of servicing fees earned on previously sold Small Business Administration ("SBA") loans.

The $4.3 million in net gain on sale of loans recognized during the first quarter of 2014 consisted substantially of gains from the sale of SBA loans. Net gain on sale of loans for the fourth quarter of 2013 was $3.5 million. During the first quarter of 2014, the Company sold $43.5 million in SBA loans, compared with $43.2 million sold during the fourth quarter of 2013.

Non-Interest Expense

Total non-interest expense was $26.3 million for the first quarter of 2014, compared with $17.3 million for the first quarter of 2013, and $24.7 million for the fourth quarter of 2013. The increase from the prior quarter is primarily attributable to the full quarter impact of the acquisitions of Saehan Bancorp and BankAsiana, as well as an increase in merger-related expenses.

Total salaries and employee benefits expense was $12.7 million for the first quarter of 2014, compared with $8.8 million for the first quarter of 2013, and $12.9 million for the fourth quarter of 2013. The increase for the first quarter of 2014, compared to the first quarter of 2013, was primarily due to the impact of personnel added from the acquisitions of Saehan and BankAsiana, in addition to an increase in stock based compensation costs from equity grants made during the first quarter of 2014.

Other non-interest expense for the first quarter of 2014 totaled $6.0 million, compared with $5.8 million in the first quarter of 2013, and $6.3 million for the fourth quarter of 2013. The decrease from the prior quarter was primarily attributable to a decline in losses on low income housing tax credit investments and legal fees.

Merger-related non-recurring expense was $3.4 million in the first quarter of 2014 and was primarily related to former Saehan Bancorp's data processing system de-conversion and contract termination expenses.

The Company's operating efficiency ratio was 56.9% for the first quarter of 2014, compared with 50.5% for the first quarter of 2013 and 59.2% for the fourth quarter of 2013.

BALANCE SHEET

Total gross loans receivable were $2.88 billion at March 31, 2014, compared to $2.82 billion at December 31, 2013. The increase in loans during the first quarter of 2014 was primarily attributable to growth in the commercial real estate portfolio.

The following table shows gross loans receivable and gross loans by loan type:

Quarter Ended
(Dollars In Thousands) (Unaudited) March 31, 2014 December 31, 2013 September 30, 2013 June 30, 2013 March 31, 2013
Construction $43,277 $40,367 $32,119 $36,371 $34,030
Real Estate Secured 2,401,203 2,332,121 1,819,052 1,715,567 1,695,980
Commercial & Industrial 419,313 437,524 342,057 337,057 313,645
Consumer 16,100 14,694 9,637 11,089 11,684
Gross Loans Receivable * 2,879,893 2,824,706 2,202,865 2,100,084 2,055,339
Held-For-Sale Loans 27,791 47,557 56,065 60,910 134,129
Total Gross Loans * $2,907,684 $2,872,263 $2,258,930 $2,160,994 $2,189,468
* Gross loans receivable and total gross loans are not net of deferred fees and costs as shown in the consolidated balance sheet presentation

The following table presents the March 31, 2014 balance of gross loans by loan type and broken out by legacy Wilshire loans and loans acquired from former Mirae Bank, BankAsiana, and Saehan Bancorp.

Quarter Ended March 31, 2014
(Dollars In Thousands) (Unaudited) BankAsiana* Saehan Bancorp* Mirae Bank* Legacy Wilshire Total
Construction $5,772 $ -- $ -- $37,505 $43,277
Real Estate Secured 112,703 336,608 66,387 1,885,505 2,401,203
Commercial & Industrial 32,926 32,355 4,847 349,185 419,313
Consumer 9 1,308 2 14,781 16,100
Gross Loans Receivable 151,410 370,271 71,236 2,286,976 2,879,893
Held-For-Sale Loans 257 189 -- 27,345 27,791
Total Gross Loans $151,667 $370,460 $71,236 $2,314,321 $2,907,684
* Represents loans balances net of fair value adjustment

The following table shows quarterly loan originations by loan type:

Quarter Ended
(Dollars In Thousands) (Unaudited) March 31, 2014 December 31, 2013 September 30, 2013 June 30, 2013 March 31, 2013
Real Estate Secured $96,266 49% $132,780 60% $145,361 68% $93,606 48% $86,839 45%
Commercial & Industrial 36,619 18% 30,541 14% 23,710 11% 40,927 21% 55,096 29%
Consumer 632 0% 546 0% 540 0% 75 0% 537 0%
SBA 35,305 18% 44,599 20% 36,001 17% 40,209 21% 27,379 14%
Residential Mortgage 29,063 15% 13,858 6% 8,714 4% 20,022 10% 22,831 12%
Total Loan Originations $197,885 100% $222,324 100% $214,326 100% $194,839 100% $192,682 100%

Originations for the first quarter of 2014 were $197.9 million, compared with $222.3 million for the fourth quarter of 2013 and $192.7 million for the first quarter of 2013. The decrease from the previous quarter was primarily due to seasonally slower loan production typically experienced during the beginning of the year.

Total SBA loans held-for-sale at the end of the first quarter of 2014 were $26.8 million, compared to $45.6 million at the end of the previous quarter. The decision to retain or sell SBA loans is made on a quarter-to-quarter basis, depending on prevailing pricing in the secondary market and the Company's liquidity needs.

Total deposits were $2.92 billion at March 31, 2014, compared with $2.87 billion at December 31, 2013. The increase in total deposits was primarily attributable to growth in non-interest bearing demand deposits, which was partially offset by a decline in time deposits. Toward the end of the first quarter of 2014, $29.8 million in brokered time deposits with a rate of 3.40% matured.

CREDIT QUALITY

The Company continued to experience relatively stable asset quality and a low level of credit losses during the first quarter of 2014. Accordingly, the Company determined that no provision for losses on loans and loan commitments was required for the first quarter of 2014. The allowance for loan losses totaled $53.5 million, or 1.86% of gross loans (excluding loans held-for-sale), at March 31, 2014, compared to $53.6 million, or 1.90% of gross loans (excluding loans held-for-sale), at December 31, 2013. The loans acquired from BankAsiana and Saehan during 2013, included in this calculation, were recorded at fair value and the remaining discount on these loans approximated $28.9 million at March 31, 2014. The coverage ratio of the allowance for loan losses to non-performing assets was 102.7% at March 31, 2014, compared with 119.5% at December 31, 2013.

Non-Performing Loans

At March 31, 2014, total non-performing loans were $43.1 million, or 1.48% of total gross loans, compared to $37.2 million, or 1.30% of total gross loans, at December 31, 2013. The increase in total non-performing loans is primarily attributable to two classified commercial loan relationships that were placed on non-accrual status during the first quarter of 2014.

Non-performing covered loans (previously acquired Mirae Bank loans covered under FDIC loss share agreement) totaled $6.6 million at March 31, 2014.

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

NON-PERFORMING LOANS Quarter Ended
(Dollars In Thousands) (Unaudited) March 31, 2014 December 31, 2013 September 30, 2013 June 30, 2013 March 31, 2013
(Net of SBA Guaranty Portions)
Construction $ -- $2,471 $2,471 $5,467 $5,542
Real Estate Secured 35,988 33,569 29,568 20,090 19,366
Commercial & Industrial 7,121 1,196 1,004 1,224 1,169
Total Non-Performing Loans $43,109 $37,236 $33,043 $26,781 $26,077

Net Charge-offs/Recoveries

During the first quarter of 2014, the Company had total gross charge-offs of $1.6 million and recoveries of $1.5 million for net charge-offs of $99,000. Total gross charge-offs were largely from the former Saehan and Mirae loan portfolio with $850,000 and $728,000 in gross charge-offs, respectively, for the first quarter of 2014. Recoveries were primarily from the legacy Wilshire portfolio with $1.4 million in recoveries during the first quarter of 2014.

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

GROSS LOAN CHARGE-OFFS Quarter Ended
(Dollars In Thousands) (Unaudited) March 31, 2014 December 31, 2013 September 30, 2013 June 30, 2013 March 31, 2013
(Net of SBA Guaranty Portions)
Real Estate Secured $672 $552 $2,438 $3,668 $4,405
Commercial & Industrial 964 997 764 746 1,183
Consumer 1 2 -- -- 1
Total Loan Charge-Offs $1,637 $1,551 $3,202 $4,414 $5,589
LOAN RECOVERIES Quarter Ended
(Dollars In Thousands) (Unaudited) March 31, 2014 December 31, 2013 September 30, 2013 June 30, 2013 March 31, 2013
(Net of SBA Guaranty Portions)
Real Estate Secured $1,028 $2,038 $148 $340 $215
Commercial & Industrial 510 679 510 433 658
Consumer -- -- 4 1 8
Total Loan Recoveries $1,538 $2,717 $662 $774 $881

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

DELINQUENT LOANS -- By Days Past Due Quarter Ended
(Dollars In Thousands) (Unaudited) March 31, 2014 December 31, 2013 September 30, 2013 June 30, 2013 March 31, 2013
(Net of SBA Guaranty Portions)
30 - 59 Days Past Due $5,756 $2,846 $2,336 $4,993 $7,438
60 - 89 Days Past Due 1,526 2,527 2,827 3,637 1,193
90 Days, and still accruing -- 167 -- 126 1,000
Total Delinquent Loans $7,282 $5,540 $5,163 $8,756 $9,631
TDR Loans
TROUBLED DEBT RESTRUCTURED LOANS Quarter Ended
(Dollars In Thousands) (Unaudited) March 31, 2014 December 31, 2013 September 30, 2013 June 30, 2013 March 31, 2013
(Net of SBA Guaranty Portions)
Real Estate Secured $34,565 $30,008 $23,133 $23,671 $23,588
Commercial & Industrial 5,563 6,212 6,339 6,730 7,279
Total TDR Loans $40,128 $36,220 $29,472 $30,401 $30,867
Classifications
LOAN CLASSIFICATIONS Quarter Ended
(Dollars In Thousands) (Unaudited) March 31, 2014 December 31, 2013 September 30, 2013 June 30, 2013 March 31, 2013
(Net of SBA Guaranty Portions)
Special Mention $101,627 $100,798 $43,519 $49,571 $74,553
Substandard 127,996 149,479 127,855 138,319 144,521
Doubtful 19,931 8,015 7,174 6,722 9,301
Total Criticized and Classified Loans $249,554 $258,292 $178,548 $194,612 $228,375
Classified Loans $147,927 $157,494 $135,029 $145,041 $153,822

CAPITAL RATIOS

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, 2014 Well Capitalized
Regulatory Requirements
Total Excess Above Well
Capitalized Requirements
Tier 1 Leverage Capital Ratio 12.50% 5.00% 266,850
Tier 1 Risk-Based Capital Ratio 14.92% 6.00% 265,804
Total Risk-Based Capital Ratio 16.17% 10.00% 184,030
Tangible Common Equity To Tangible Assets * 10.64% N/A N/A
Tangible Common Equity Per Common Share * $4.84 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.

Share Repurchase Program

In March 2013, the Board of Directors of Wilshire Bancorp authorized the repurchase of up to 5% of the Company's outstanding shares of common stock. During the first quarter of 2014, the Company did not repurchase any shares. Since the program's inception, 651,412 shares of common stock were repurchased for a total price of $4.3 million. The program expired on March 28, 2014.

CONFERENCE CALL

Management will host its quarterly conference call on April 22, 2014, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing 877-703-6105 (domestic number) or 857-244-7304 (international number) and providing the passcode 72989571.

ABOUT WILSHIRE BANCORP

Headquartered in Los Angeles, Wilshire Bancorp is the parent company of Wilshire Bank, which operates 35 branch offices in California, Texas, New Jersey and New York, and 7 loan production offices in Dallas, TX, Atlanta, GA, Aurora, CO, Annandale, VA, Palisades Park, NJ, Newark, CA, and New York, NY, and is an SBA preferred lender nationwide. Wilshire Bank is a community bank with a focus on commercial real estate lending and general commercial banking, with its primary market encompassing the multi-ethnic populations of the Los Angeles Metropolitan area. For more information, please go to www.wilshirebank.com.

FORWARD-LOOKING STATEMENTS

Statements concerning future performance, events, or any other guidance on future periods constitute forward-looking statements that are subject to a number of risks and uncertainties that might cause actual results to differ materially from stated expectations. Undue reliance should not be placed on forward-looking statements, as they are subject to risks and uncertainties, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K and our other filings made from time to time with the Securities and Exchange Commission. Specific factors that could cause future results to differ materially from historical performance and these forward-looking statements include, but are not limited to: (1) loan production and sales, (2) credit quality, (3) the ability to expand net interest margin, (4) the ability to continue to attract low-cost deposits, (5) success of expansion efforts, (6) competition in the marketplace, (7) political developments, war or other hostilities, (8) changes in the interest rate environment, (9) the ability of our borrowers to repay their loans, (10) the ability to maintain capital requirements and adequate sources of liquidity, (11) effects of or changes in accounting policies, (12) legislative or regulatory changes or actions, (13) the ability to attract and retain key personnel, (14) the ability to receive dividends from our subsidiaries, (15) the ability to secure confidential information through the use of computer systems and telecommunications networks, (16) weakening in the economy, specifically the real estate market, either nationally or in the states in which we do business, (17) the integration of our acquired businesses, and (18) general economic conditions. The information in this press release speaks only as of the date of this release and Wilshire Bancorp specifically disclaims any duty to update the information in this press release. Additional information on these and other factors that could affect financial results are included in filings by Wilshire Bancorp with the Securities and Exchange Commission.

CONSOLIDATED BALANCE SHEET
(Dollars In Thousands) (Unaudited) March 31, December 31, Three Months March 31, Twelve Months
2014 2013 % Change 2013 % Change
ASSETS:
Cash and Due from Banks $160,999 $124,064 30% $86,890 85%
Federal Funds Sold and Other Cash Equivalents 7,301 46,590 -84% 55,005 -87%
Total Cash and Cash Equivalents 168,300 170,654 -1% 141,895 19%
Deposits held in other financial institutions 21,006 21,019 0% -- 0%
Investment Securities Available For Sale 342,438 352,437 -3% 336,569 2%
Investment Securities Held To Maturity 32 35 -9% 46 -30%
Total Investment Securities 342,470 352,472 -3% 336,615 2%
Total Loans Held-For-Sale 27,791 47,557 -42% 134,129 -79%
Real Estate Construction 42,124 39,268 7% 33,275 27%
Residential Real Estate 169,810 124,373 37% 142,958 19%
Commercial Real Estate 2,225,677 2,190,154 2% 1,549,280 44%
Commercial and Industrial 417,956 448,379 -7% 312,758 34%
Consumer 16,072 14,668 10% 11,666 38%
Total Loans Receivable, Net of Deferred Fees and Costs 2,871,639 2,816,842 2% 2,049,937 40%
Allowance For Loan Losses (53,464) (53,563) 0% (58,577) -9%
Loans Receivable, Net of Allowance for Loan Losses 2,818,175 2,763,279 2% 1,991,360 42%
Accrued Interest Receivable 8,293 8,350 -1% 7,533 10%
Due from Customers on Acceptances 889 1,517 -41% 162 449%
Other Real Estate Owned 8,969 7,600 18% 1,219 636%
Premises and Equipment 13,313 13,862 -4% 11,218 19%
Federal Home Loan Bank (FHLB) Stock, at Cost 15,983 15,983 0% 11,933 34%
Cash Surrender Value of Life Insurance 22,661 22,519 1% 22,074 3%
Investment in affordable housing partnerships 42,459 43,316 -2% 38,334 11%
Deferred Income Taxes 34,391 39,672 -13% 17,135 101%
Servicing Assets 17,536 16,108 9% 10,421 68%
Goodwill 67,528 67,528 0% 6,675 912%
FDIC Indemnification Asset 2,169 4,856 -55% 4,954 -56%
Other Assets 22,533 21,443 5% 20,763 9%
TOTAL ASSETS $3,634,466 $3,617,735 0% $2,756,420 32%
LIABILITIES AND SHAREHOLDERS' EQUITY:
LIABILITIES:
Non-interest Bearing Demand Deposits $869,598 $832,152 4% $593,584 46%
Savings and Interest Checking 156,587 145,549 8% 125,636 25%
Money Market Deposits 799,299 780,280 2% 623,103 28%
Time Deposits in denomination of $100,000 or more 860,697 869,337 -1% 589,502 46%
Other Time Deposits 237,028 244,192 -3% 230,733 3%
Total Deposits 2,923,209 2,871,510 2% 2,162,558 35%
FHLB Borrowings 150,292 190,325 -21% 150,000 0%
Acceptance Outstanding 889 1,517 -41% 162 449%
Junior Subordinated Debentures 71,610 71,550 0% 61,857 16%
Accrued Interest Payable 2,462 2,418 2% 2,056 20%
Other Liabilities 34,429 40,997 -16% 26,074 32%
Total Liabilities 3,182,891 3,178,317 0% 2,402,707 32%
SHAREHOLDERS' EQUITY:
Common Stock 230,979 229,836 0% 164,915 40%
Retained Earnings 218,806 209,605 4% 182,405 20%
Accumulated Other Comprehensive Income 1,790 (23) N/A 6,393 -72%
Total Shareholders' Equity 451,575 439,418 3% 353,713 28%
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $3,634,466 $3,617,735 0% $2,756,420 32%
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
Quarter Ended Three Mths Quarter Ended Twelve Mths
March 31, 2014 December 31, 2013 % Change March 31, 2013 % Change
INTEREST INCOME
Interest and Fees on Loans $37,101 $33,954 9% $26,885 38%
Interest on Investment Securities 2,101 2,075 1% 1,725 22%
Interest on Federal Funds Sold and Others 151 158 -4% 153 -1%
Total Interest Income 39,353 36,187 9% 28,763 37%
INTEREST EXPENSE
Deposits 3,676 3,446 7% 2,849 29%
FHLB Advances and Other Borrowings 504 413 22% 362 39%
Total Interest Expense 4,180 3,859 8% 3,211 30%
Net Interest Income Before Provision for Losses on Loans and Loan Commitments 35,173 32,328 9% 25,552 38%
Provision for Losses on Loans and Loan Commitments -- -- 0% -- 0%
Net Interest Income After Provision for Losses on Loans and Loan Commitments 35,173 32,328 9% 25,552 38%
NONINTEREST INCOME
Service Charges on Deposits 3,146 3,002 5% 2,808 12%
Gain on Sales of Loans, Net 4,329 3,980 9% 3,486 24%
Gain on Sale/Call of Investment Securities -- 4 -100% -- 0%
Other 3,511 2,328 51% 2,411 46%
Total Noninterest Income 10,986 9,314 18% 8,705 26%
NONINTEREST EXPENSES
Salaries and Employee Benefits 12,655 12,948 -2% 8,805 44%
FDIC Indemnification Impairment -- -- 0% -- 0%
Occupancy & Equipment 3,309 2,712 22% 2,040 62%
Data Processing 963 920 5% 675 43%
Merger Related Costs 3,364 1,785 88% -- 0%
Other 5,966 6,288 -5% 5,764 4%
Total Noninterest Expenses 26,257 24,653 7% 17,284 52%
Income Before Income Taxes 19,902 16,989 17% 16,973 17%
Income Taxes Provision 6,789 6,075 12% 5,384 26%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $13,113 $10,914 20% $11,589 13%
PER COMMON SHARE INFORMATION:
Basic Income Per Common Share $0.17 $0.15 14% $0.16 3%
Diluted Income Per Common Share $0.17 $0.15 14% $0.16 3%
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic 78,115,779 74,082,711 71,295,673
Diluted 78,496,106 74,462,668 71,431,841
SUMMARY OF FINANCIAL DATA
(Dollars In Thousands, Except Per Share Data) (Unaudited)
Quarter Ended
AVERAGE BALANCES March 31, 2014 December 31, 2013 March 31, 2013
Average Assets $3,631,268 $3,306,168 $2,726,058
Average Equity 447,188 401,153 348,071
Average Total Loans 2,881,650 2,626,557 2,126,940
Average Deposits 2,878,950 2,610,689 2,135,445
Average Time Deposits of $100,000 or more 874,039 801,836 581,213
Average FHLB & Other Borrowings 193,413 185,182 150,044
Average Interest Earning Assets 3,346,954 3,093,084 2,580,456
Quarter Ended
PROFITABILITY March 31, 2014 December 31, 2013 March 31, 2013
Annualized Return on Average Assets 1.44% 1.32% 1.70%
Annualized Return on Average Equity 11.73% 10.88% 13.32%
Efficiency Ratio 56.88% 59.20% 50.45%
Annualized Operating Expense/Average Assets 2.89% 2.98% 2.54%
Annualized Net Interest Margin 4.22% 4.20% 3.99%
As Of
March 31, 2014 December 31, 2013 March 31, 2013
DEPOSIT COMPOSITION Percent of Total Rate Percent of Total Rate Percent of Total Rate
Noninterest Bearing Demand Deposits 29.7% 0.00% 29.0% 0.00% 27.4% 0.00%
Savings & Interest Checking 5.4% 1.28% 5.1% 1.35% 5.8% 1.51%
Money Market Deposits 27.3% 0.66% 27.2% 0.65% 28.8% 0.63%
Time Deposits of $100,000 or More 29.4% 0.68% 30.3% 0.69% 27.3% 0.64%
Other Time Deposits 8.1% 0.67% 8.5% 0.81% 10.7% 0.80%
Total Deposits 100.0% 0.51% 100.0% 0.53% 100.0% 0.53%
As Of
CAPITAL RATIOS March 31, 2014 December 31, 2013 March 31, 2013
Tier 1 Leverage Ratio 12.50% 13.32% 14.72%
Tier 1 Risk-Based Capital Ratio 14.92% 14.65% 18.72%
Total Risk-Based Capital Ratio 16.17% 15.91% 19.99%
Total Shareholders' Equity $451,575 $439,418 $353,713
Book Value Per Common Share $5.77 $5.63 $4.96
Tangible Common Equity Per Common Share * $4.84 $4.70 $4.85
Tangible Common Equity to Tangible Assets ** 10.64% 10.22% 12.59%
* Tangible common equity excludes goodwill, other intangible assets
** Tangible assets excludes goodwill and intangible assets
ALLOWANCE FOR LOAN LOSSES
(Dollars In Thousands) (Unaudited)
Quarter Ended
March 31, 2014 December 31, 2013 September 30, 2013 June 30, 2013 March 31, 2013
Balance at Beginning of Period $53,563 $52,397 $54,937 $58,577 $63,285
Provision for Losses on Loans -- -- -- -- --
Recoveries on Loans Previously Charged-off 1,538 2,717 662 774 881
Gross Loan Charge-offs (1,637) (1,551) (3,202) (4,414) (5,589)
Balance at End of Period $53,464 $53,563 $52,397 $54,937 $58,577
Net Loan Charge-offs/Average Net Loans 0.00% -0.04% 0.12% 0.17% 0.23%
Charge-offs/Average Total Loans 0.06% 0.06% 0.15% 0.21% 0.27%
Allowance for Loan Losses/Gross Loans * 1.86% 1.90% 2.38% 2.62% 2.85%
Allowance for Loan Losses/Legacy Wilshire Loans * 1.90% 1.95% 2.48% 2.75% 3.01%
Allowance for Loan Losses/Non-accrual Loans 124.02% 144.50% 158.57% 206.10% 233.59%
Allowance for Loan Losses/Non-performing Loans 124.02% 144.85% 158.57% 205.13% 224.63%
Allowance for Loan Losses/Non-performing Assets 102.66% 119.46% 155.06% 197.88% 214.60%
Allowance for Loan Losses/Classified Loans 34.01% 34.01% 38.80% 37.88% 38.08%
* Excluding held-for-sale loans
NON-PERFORMING ASSETS
(Dollars In Thousands, Net of SBA Guaranty) Quarter Ended
(Unaudited) March 31, 2014 December 31, 2013 September 30, 2013 June 30, 2013 March 31, 2013
Non-accrual Loans $43,109 $37,068 $33,043 $26,655 $25,077
Loans 90 days or more past due and still accruing -- 168 -- 126 1,000
Total Non-performing Loans 43,109 37,236 33,043 26,781 26,077
Total OREO 8,969 7,600 748 982 1,219
Total Non-performing Assets $52,078 $44,836 $33,791 $27,763 $27,296
Total Non-performing Loans/Gross Loans 1.48% 1.30% 1.46% 1.24% 1.19%
Total Non-performing Assets/Total Assets 1.43% 1.24% 1.19% 1.00% 0.99%
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS
(Dollars In Thousands) (Unaudited) Quarter Ended
March 31, 2014 December 31, 2013 September 30, 2013 June 30, 2013 March 31, 2013
Balance at beginning of period $1,061 $1,061 $1,023 $1,023 $1,023
Credit for losses on off-balance sheet items -- -- -- -- --
Balance at end of period $1,061 $1,061 $1,023 $1,023 $1,023
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
For the Quarter Ended
March 31, 2014 December 31, 2013 March 31, 2013
Average Interest Average Average Interest Average Average Interest Average
Balance Income/ Yield/ Balance Income/ Yield/ Balance Income/ Yield/
INTEREST EARNING ASSETS Expense Rate Expense Rate Expense Rate
LOANS:
Real Estate Loans $2,447,610 $31,008 5.07% $2,211,155 $27,780 5.03% $1,804,496 $22,435 4.97%
Commercial Loans 430,076 4,919 4.58% 411,421 5,143 5.00% 314,389 3,630 4.62%
Consumer Loans 11,873 118 3.98% 10,647 100 3.76% 12,827 80 2.50%
Total Gross Loans 2,889,559 36,045 4.99% 2,633,223 33,023 5.02% 2,131,712 26,145 4.91%
Deferred Fees and Costs \ Loan Fees (7,909) 1,056 (6,666) 931 (4,772) 740
Total Loans * 2,881,650 37,101 5.15% 2,626,557 33,954 5.17% 2,126,940 26,885 5.06%
INVESTMENT SECURITIES AND
OTHER INTEREST-EARNING ASSETS:
Investment Securities** 349,701 2,101 2.60% 347,082 2,075 2.60% 324,261 1,725 2.37%
Deposits Held In Other Institutions 21,019 69 1.31% 13,593 38 1.12% -- -- 0.00%
Federal Funds Sold & Others 94,584 82 0.35% 105,852 120 0.45% 129,255 153 0.47%
Total Investment Securities and
Other Earning Assets 465,304 2,252 2.09% 466,527 2,233 2.07% 453,516 1,878 1.83%
TOTAL INTEREST-EARNING ASSETS $3,346,954 $39,353 4.72% $3,093,084 $36,187 4.70% $2,580,456 $28,763 4.49%
Total Non-Interest Earning Assets 284,314 213,084 145,602
TOTAL ASSETS $3,631,268 $3,306,168 $2,726,058
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money Market $784,219 $1,301 0.66% $687,948 $1,121 0.65% $623,471 $976 0.63%
NOW 32,019 15 0.19% 29,212 15 0.21% 25,958 12 0.19%
Savings 120,908 476 1.58% 109,304 452 1.65% 100,560 464 1.85%
Time Deposits of $100,000 or More 874,039 1,485 0.68% 801,836 1,384 0.69% 581,213 924 0.64%
Other Time Deposits 236,826 399 0.67% 231,821 474 0.82% 235,862 473 0.80%
Total Interest Bearing Deposits 2,048,011 3,676 0.72% 1,860,121 3,446 0.74% 1,567,064 2,849 0.73%
BORROWINGS:
FHLB Advances and Other Borrowings 193,413 74 0.15% 185,182 64 0.14% 150,044 80 0.21%
Junior Subordinated Debentures 71,573 430 2.40% 66,275 349 2.11% 61,857 282 1.82%
Total Borrowings 264,986 504 0.76% 251,457 413 0.66% 211,901 362 0.68%
TOTAL INTEREST BEARING LIABILITIES $2,312,997 $4,180 0.72% $2,111,578 $3,859 0.73% $1,778,965 $3,211 0.72%
Non-Interest Bearing Deposits 830,939 750,568 568,381
Other Liabilities 40,144 42,869 30,641
Shareholders' Equity 447,188 401,153 348,071
TOTAL LIABILITIES AND EQUITY $3,631,268 $3,306,168 $2,726,058
NET INTEREST INCOME $35,173 $32,328 $25,552
.
NET INTEREST SPREAD 4.00% 3.97% 3.77%
NET INTEREST MARGIN 4.22% 4.20% 3.99%
* 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, 2014 December 31, 2013 March 31, 2013
Total shareholders' equity $451,575 $439,418 $353,713
Goodwill and other intangible assets, net (72,480) (72,752) (7,642)
Tangible common equity $379,095 $366,666 $346,071
Total assets $3,634,466 $3,617,084 $2,756,420
Goodwill and other intangible assets, net (72,480) (72,752) (7,642)
Tangible assets $3,561,986 $3,544,983 $2,748,778
Common shares outstanding 78,247,026 78,061,307 71,296,956
PRE-TAX, PRE-PROVISION INCOME (PTPP) *
(Dollars In Thousands) (Unaudited) Quarter Ended
March 31, 2014 December 31, 2013 March 31, 2013
Net Income $13,113 $10,914 $11,589
Add Back - Income Tax Provision (Benefit) 6,789 6,075 5,384
Add Back - Provision for Losses on Loans and Loan Commitments -- -- --
Pre-tax, Pre-Provision Income (PTPP) 19,902 $16,989 $16,973
Merger Related Costs 3,364 1,785 --
PTPP, Excluding Merger Related Costs $23,266 $18,774 $16,973
PTPP to Average Assets (Annualized) 2.19% 2.06% 2.49%
PTPP, Excluding Merger Related Costs to Average Assets (Annualized) 2.56% 2.27% 2.49%
* Tangible Common Equity, Tangible Assets, and Pre-tax, Pre-provision Income 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

CONTACT: Alex Ko, EVP & CFO, (213) 427-6560 www.wilshirebank.comSource:Wilshire Bancorp, Inc.