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Wilshire Bancorp Reports Net Income of $15.1 Million or $0.19 per Share for Third Quarter 2014

LOS ANGELES, Oct. 20, 2014 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq:WIBC) (the "Company"), the holding company for Wilshire Bank (the "Bank"), today reported net income of $15.1 million, or $0.19 per diluted common share, for the quarter ended September 30, 2014. This compares to net income of $11.3 million, or $0.16 per diluted common share, for the same period of the prior year, and net income of $14.7 million, or $0.19 per diluted common share, for the second quarter of 2014.

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "We had an outstanding quarter from a business development standpoint, generating almost $400 million in loan originations, which is a record level for the Company. It is important to note that we had contributions from all of our major lending areas including commercial real estate, commercial, SBA, and residential mortgages. As a result of our strong loan production, our total loan portfolio increased at an annualized rate of 27% during the third quarter. The performance is a testament to the highly productive marketing team we have developed at Wilshire, which has been strengthened by the addition of experienced business development officers from our BankAsiana and Saehan acquisitions. We are very pleased that we have been able to generate this growth in our loan portfolio, while continuing to see declining levels of problem assets, which underscores our commitment to maintaining a strong credit culture. We continue to have a healthy pipeline of attractive lending opportunities, which should enable us to continue our positive trends over the rest of 2014."

Q3 2014 Summary

  • Net income totaled $15.1 million, or $0.19 per diluted common share, for the third quarter of 2014
  • Total revenue of $46.4 million for the third quarter of 2014, an increase of 34% from the third quarter of 2013
  • Return on average assets of 1.61% and return on average equity of 12.80% for the third quarter of 2014
  • Net interest margin of 4.26% for the third quarter of 2014, an increase from 4.08% for the third quarter of 2013
  • Loans receivable (net of deferred fees and costs) totaled $3.16 billion at September 30, 2014, an increase of 44% from $2.20 billion at September 30, 2013
  • Total deposits were $3.19 billion at September 30, 2014, an increase of 41% from $2.25 billion at September 30, 2013
  • Continued low credit losses and improvement in asset quality resulted in no provision for losses on loans and loan commitments for the third quarter of 2014

STATEMENT OF OPERATIONS

Net interest income before provision for losses on loans and loan commitments totaled $36.8 million for the third quarter of 2014, an increase of 38% from $26.7 million for the third quarter of 2013, and an increase of 2% from $36.1 million for the second quarter of 2014. The increase from the prior quarter is primarily attributable to a higher average loan balance and an increase in acquired loan discount accretion income. Discount accretion income from loans acquired from Saehan Bancorp and BankAsiana totaled $2.9 million for the third quarter of 2014, compared to $2.5 million for the second quarter of 2014.

Net interest margin was 4.26% for the third quarter of 2014, compared to 4.35% for the second quarter of 2014, and 4.08% for the third quarter of 2013. Excluding the effect of the amortization/accretion of the purchase accounting adjustments for the acquisitions for Saehan Bancorp and BankAsiana, the net interest margin was 3.89% for the third quarter of 2014, compared with 4.00% for the second quarter of 2014. The decrease in net interest margin is attributable to a decrease in average yield on loans, excluding the effects of purchase accounting adjustments, and an increase in the cost of deposits.

Loan yields were 5.12% for the third quarter of 2014, compared with 5.20% for the second quarter of 2014, and 5.05% for the third quarter of 2013. Excluding the effect of the accretion of the purchase accounting adjustments for Saehan Bancorp and BankAsiana, loan yields were 4.74% for the third quarter of 2014, compared to 4.85% for the second quarter of 2014.

The total cost of deposits was 0.53% for the third quarter of 2014, compared with 0.48% for the second quarter of 2014 and 0.53% for the third quarter of 2013.

Non-Interest Income

Total non-interest income was $9.6 million for the third quarter of 2014, compared to $7.8 million for the third quarter of 2013, and $10.7 million for the second quarter of 2014. The decrease from the prior quarter was primarily due a lower net gain on sale of Small Business Administration ("SBA") loans, which was partially offset by an increase in other real estate owned ("OREO") rental and other miscellaneous income.

The $2.4 million in net gain on sale of loans recognized during the third quarter of 2014 consisted substantially of gains from the sale of SBA loans. Net gain on sale of loans for the second quarter of 2014 was $4.7 million. During the third quarter of 2014, the Company sold $20.3 million in SBA loans, compared with $45.3 million sold during the second quarter of 2014.

Non-Interest Expense

Total non-interest expense was $23.2 million for the third quarter of 2014, compared with $17.8 million for the third quarter of 2013, and $24.6 million for the second quarter of 2014. The reduction in non-interest expense from the prior quarter was primarily attributable to fewer merger-related expenses and a reduction in impairment charge to the Company's FDIC indemnification asset.

Total salaries and employee benefits expense was $12.3 million for the third quarter of 2014, compared with $8.8 million for the third quarter of 2013, and $12.4 million for the second quarter of 2014.

Other non-interest expense for the third quarter of 2014 totaled $6.4 million, compared with $6.3 million in the third quarter of 2013, and $7.1 million for the second quarter of 2014. The decrease from the prior quarter was primarily attributable to a reduction in OREO and low income housing investment-related expenses.

The Company's operating efficiency ratio was 50.1% for the third quarter of 2014, compared with 51.7% for the third quarter of 2013, and 52.4% for the second quarter of 2014.

BALANCE SHEET

Total gross loans receivable (not including deferred fees and costs) were $3.17 billion at September 30, 2014, compared to $2.98 billion at June 30, 2014. The increase in loans during the third quarter of 2014 was driven by growth in the real estate secured and commercial & industrial portfolios.

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

Quarter Ended
(Dollars In Thousands) (Unaudited) September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013 September 30, 2013
Construction $ 41,406 $ 44,598 $ 43,277 $ 40,367 $ 32,119
Real Estate Secured 2,595,906 2,485,875 2,401,203 2,332,121 1,819,052
Commercial & Industrial 521,410 435,693 419,313 437,524 342,057
Consumer 12,842 13,075 16,100 14,694 9,637
Gross Loans Receivable * 3,171,564 2,979,241 2,879,893 2,824,706 2,202,865
Held-For-Sale Loans 16,236 6,207 27,791 47,557 56,065
Total Gross Loans * $ 3,187,800 $ 2,985,448 $ 2,907,684 $ 2,872,263 $ 2,258,930
* 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 September 30, 2014 balance of gross loans by loan type and broken out by legacy Wilshire loans and loans acquired from former BankAsiana, Saehan Bank, and Mirae Bank.

At September 30, 2014
(Dollars In Thousands) (Unaudited) BankAsiana* Saehan Bank* Mirae Bank* Legacy Wilshire Total
Construction $ 3,756 $ -- $ -- $ 37,650 $ 41,406
Real Estate Secured 108,266 318,920 43,813 2,124,907 2,595,906
Commercial & Industrial 24,379 20,800 2,830 473,401 521,410
Consumer 1 833 -- 12,008 12,842
Gross Loans Receivable 136,402 340,553 46,643 2,647,966 3,171,564
Held-For-Sale Loans -- -- -- 16,236 16,236
Total Gross Loans $ 136,402 $ 340,553 $ 46,643 $ 2,664,202 $ 3,187,800
* Represents loans balances net of fair value adjustments

The following table shows quarterly loan originations:

Quarter Ended
(Dollars In Thousands) (Unaudited) September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013 September 30, 2013
Real Estate Secured $191,272 48% $170,042 60% $96,266 49% $132,780 60% $145,361 68%
Commercial & Industrial 89,166 22% 31,058 11% 36,619 18% 30,541 14% 23,710 11%
Consumer 6,560 2% 1,580 1% 632 0% 546 0% 540 0%
SBA 41,373 10% 37,004 13% 35,305 18% 44,599 20% 36,001 17%
Residential Mortgage Dept. 70,791 18% 42,325 15% 29,063 15% 13,858 6% 8,714 4%
Total Loan Originations $399,162 100% $282,009 100% $197,885 100% $222,324 100% $214,326 100%

Originations for the third quarter of 2014 totaled $399.2 million, compared to $282.0 million for the second quarter of 2014, and $214.3 million for the third quarter of 2013. The increase from the previous quarter was primarily due to higher real estate secured, commercial and residential mortgage loan production.

Total SBA loans held-for-sale at the end of the third quarter of 2014 were $16.2 million, compared to $5.1 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 $3.19 billion at September 30, 2014, compared with $2.96 billion at June 30, 2014. The increase in total deposits was primarily attributable to growth in time deposits, which was partially offset by a decrease in non-interest bearing demand deposits and savings and interest checking deposits.

CREDIT QUALITY

The Company had net loan recoveries during the third quarter of 2014 and experienced a continued decline in criticized and classified loans, while non-accrual loans increased by $2.5 million as previously identified problem loans continued to progress toward resolution. Due to the continued low level of loss experience and decline in total problem loans, the Company determined that no provision for losses on loans and loan commitments was required for the third quarter of 2014. The allowance for loan losses totaled $53.1 million, or 1.67% of gross loans (excluding loans held-for-sale), at September 30, 2014, compared to $52.7 million, or 1.77% of gross loans (excluding loans held-for-sale), at June 30, 2014. Acquired loans, included in the allowance coverage ratios, were recorded at fair value and the remaining discount on these loans was approximately $24.7 million at September 30, 2014. The coverage ratio of the allowance for loan losses to non-performing assets was 103.2% at September 30, 2014, compared with 107.4% at June 30, 2014.

Non-Performing Loans

At September 30, 2014, total non-performing loans were $44.9 million, or 1.41% of total gross loans, compared to $42.4 million, or 1.42% of total gross loans, at June 30, 2014.

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

NON-PERFORMING LOANS Quarter Ended
(Dollars In Thousands) (Unaudited) Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013
(Net of SBA Guaranty Portions)
Construction $ -- $ -- $ -- $ 2,471 $ 2,471
Real Estate Secured 37,205 35,585 35,988 33,569 29,568
Commercial & Industrial 7,699 6,769 7,121 1,196 1,004
Consumer 1 4 -- -- --
Total Non-Performing Loans $ 44,905 $ 42,358 $ 43,109 $ 37,236 $ 33,043

Net Charge-offs/Recoveries

During the third quarter of 2014, the Company had total gross charge-offs of $1.8 million and recoveries of $2.2 million which resulted in total net recoveries of $447,000 for the quarter.

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

GROSS LOAN CHARGE-OFFS Quarter Ended
(Dollars In Thousands) (Unaudited) Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013
Real Estate Secured $ 1,161 $ 782 $ 672 $ 552 $ 2,438
Commercial & Industrial 614 1,021 964 997 764
Consumer -- -- 1 2 --
Total Loan Charge-Offs $ 1,775 $ 1,803 $ 1,637 $ 1,551 $ 3,202

LOAN RECOVERIES Quarter Ended
(Dollars In Thousands) (Unaudited) Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013
Real Estate Secured $ 1,688 $ 586 $ 1,028 $ 2,038 $ 148
Commercial & Industrial 534 408 510 679 510
Consumer -- 14 -- -- 4
Total Loan Recoveries $ 2,222 $ 1,008 $ 1,538 $ 2,717 $ 662

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

DELINQUENT LOANS -- By Days Past Due Quarter Ended
(Dollars In Thousands) (Unaudited) Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013
(Net of SBA Guaranty Portions)
30 - 59 Days Past Due $4,137 $4,556 $5,756 $2,846 $2,336
60 - 89 Days Past Due 4,002 2,992 1,526 2,527 2,827
90 Days, and still accruing -- -- -- 167 --
Total Delinquent Loans $8,139 $7,548 $7,282 $5,540 $5,163
TROUBLED DEBT RESTRUCTURED LOANS Quarter Ended
(Dollars In Thousands) (Unaudited) Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013
(Net of SBA Guaranty Portions)
Real Estate Secured $31,313 $33,349 $34,565 $30,008 $23,133
Commercial & Industrial 11,425 5,542 5,563 6,212 6,339
Total TDR Loans $42,738 $38,891 $40,128 $36,220 $29,472
LOAN CLASSIFICATIONS Quarter Ended
(Dollars In Thousands) (Unaudited) Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013
(Net of SBA Guaranty Portions)
Special Mention $62,929 $88,382 $101,627 $100,798 $43,519
Substandard 94,854 110,462 127,996 149,479 127,855
Doubtful 15,291 18,040 19,931 8,015 7,174
Total Criticized and Classified Loans $173,074 $216,884 $249,554 $258,292 $178,548
Total Classified Loans $110,145 $128,502 $147,927 $157,494 $135,029

CAPITAL RATIOS

As of September 30, 2014, 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) September 30, 2014 Well Capitalized
Regulatory
Requirements
Total Excess Above
Well Capitalized
Requirements
Tier 1 Leverage Capital Ratio 12.72% 5.00% $ 284,052
Tier 1 Risk-Based Capital Ratio 14.37% 6.00% $ 272,684
Total Risk-Based Capital Ratio 15.63% 10.00% $ 183,308
Tangible Common Equity To Tangible Assets * 10.45% N/A N/A
Tangible Common Equity Per Common Share * $ 5.16 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 October 21, 2014, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing 800-299-8538 (domestic) or 617-786-2902 (international) and providing passcode number 96276277.

ABOUT WILSHIRE BANCORP

Headquartered in Los Angeles, Wilshire Bancorp is the parent company of Wilshire Bank, which operates 36branch offices in California, Texas, New Jersey and New York, and 4 loan production offices in Atlanta, GA, Aurora, CO, Newark, CA, and Bellevue, WA, 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)
September 30,
2014
June 30,
2014
Three Months
% Change
September 30,
2013
Twelve Months
% Change
ASSETS:
Cash and due from banks $173,586 $155,799 11% $92,896 87%
Federal funds sold and other cash equivalents 21 927 -98% 55,005 -100%
Total Cash and Cash Equivalents 173,607 156,726 11% 147,901 17%
Deposits held in other financial institutions 9,000 20,509 -56% -- 0%
Investment securities available for sale 365,866 327,239 12% 325,724 12%
Investment securities held to maturity 28 30 -7% 38 -26%
Total Investment Securities 365,894 327,269 12% 325,762 12%
Total Loans Held-For-Sale 16,236 6,207 162% 56,065 -71%
Real estate construction 40,062 43,292 -7% 31,172 29%
Residential real estate 174,466 167,055 4% 144,845 20%
Commercial real estate 2,418,776 2,314,746 4% 1,669,511 45%
Commercial and industrial 515,831 431,758 19% 340,943 51%
Consumer 12,810 13,044 -2% 9,614 33%
Total loans receivable, net of deferred fees and costs 3,161,945 2,969,895 6% 2,196,085 44%
Allowance for loan losses (53,116) (52,669) 1% (52,397) 1%
Loans Receivable, Net of Allowance for Loan Losses 3,108,829 2,917,226 7% 2,143,688 45%
Accrued interest receivable 8,324 8,032 4% 6,873 21%
Due from customers on acceptances 10,350 3,090 235% 328 3055%
Other real estate owned 6,565 6,676 -2% 748 778%
Premises and equipment 12,380 12,925 -4% 11,531 7%
Federal home loan bank (FHLB) stock, at cost 16,539 16,989 -3% 13,280 25%
Cash surrender value of life insurance 22,945 22,803 1% 22,372 3%
Investment in affordable housing partnerships 45,017 41,112 9% 44,400 1%
Deferred income taxes 27,656 32,459 -15% 19,823 40%
Servicing assets 17,927 18,168 -1% 11,573 55%
Goodwill 67,473 67,528 0% 6,675 911%
FDIC indemnification asset -- 267 -100% 4,950 -100%
Other assets 27,056 23,275 16% 16,546 64%
TOTAL ASSETS $3,935,798 $3,681,261 7% $2,832,515 39%
LIABILITIES AND SHAREHOLDERS' EQUITY:
LIABILITIES:
Non-interest bearing demand deposits $914,667 $945,010 -3% $655,864 39%
Savings and interest checking 156,669 160,155 -2% 127,835 23%
Money market deposits 772,902 758,833 2% 580,833 33%
Time deposits in denomination of $100,000 or more 1,092,058 856,681 27% 683,290 60%
Other time deposits 249,058 235,335 6% 205,795 21%
Total Deposits 3,185,354 2,956,014 8% 2,253,617 41%
FHLB borrowings 150,000 150,260 0% 120,000 25%
Acceptance outstanding 10,350 3,090 235% 328 3055%
Junior subordinated debentures 71,722 71,665 0% 61,857 16%
Accrued interest payable 2,249 2,349 -4% 1,808 24%
Other liabilities 40,415 33,114 22% 30,589 32%
Total Liabilities 3,460,090 3,216,492 8% 2,468,199 40%
SHAREHOLDERS' EQUITY:
Common stock 231,715 231,368 0% 161,368 44%
Retained earnings 240,770 229,556 5% 201,033 20%
Accumulated other comprehensive income 3,223 3,845 -16% 1,915 68%
Total Shareholders' Equity 475,708 464,769 2% 364,316 31%
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $3,935,798 $3,681,261 7% $2,832,515 39%
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
Quarter Ended Three Mths Quarter Ended Twelve Mths
September 30, 2014 June 30, 2014 % Change September 30, 2013 % Change
INTEREST INCOME
Interest and fees on loans $39,217 $37,993 3% $27,913 40%
Interest on investment securities 2,018 2,023 0% 1,879 7%
Interest on federal funds sold and others 91 92 -1% 148 -39%
Total Interest Income 41,326 40,108 3% 29,940 38%
INTEREST EXPENSE
Deposits 3,981 3,486 14% 2,923 36%
FHLB advances and other borrowings 577 493 17% 321 80%
Total Interest Expense 4,558 3,979 15% 3,244 41%
Net interest income before provision for losses on loans and loan commitments 36,768 36,129 2% 26,696 38%
Provision for losses on loans and loan commitments -- -- 0% -- 0%
Net interest income after provision for losses on loans and loan commitments 36,768 36,129 2% 26,696 38%
NONINTEREST INCOME
Service charges on deposits 3,268 3,174 3% 2,791 17%
Gain on sales of loans, net 2,418 4,687 -48% 2,814 -14%
Gain on sale/call of investment securities -- -- 0% -- 0%
Other 3,912 2,883 36% 2,227 76%
Total Noninterest Income 9,598 10,744 -11% 7,832 23%
NONINTEREST EXPENSES
Salaries and employee benefits 12,261 12,449 -2% 8,830 39%
FDIC indemnification impairment -- 597 -100% -- 0%
Occupancy and equipment 3,350 3,444 -3% 2,061 63%
Data processing 1,210 795 52% 623 94%
Merger related costs -- 213 -100% -- 0%
Other 6,418 7,052 -9% 6,323 2%
Total Noninterest Expenses 23,239 24,550 -5% 17,837 30%
Income before income taxes 23,127 22,323 4% 16,691 39%
Income taxes provision 7,998 7,659 4% 5,357 49%
NET INCOME $15,129 $14,664 3% $11,334 33%
PER COMMON SHARE INFORMATION:
Basic income per common share $0.19 $0.19 3% $0.16 21%
Diluted income per common share $0.19 $0.19 3% $0.16 21%
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic 78,302,251 78,267,128 70,742,136
Diluted 78,619,592 78,613,468 71,045,994
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
Nine Months Ended Twelve Months
September 30, 2014 September 30, 2013 % Change
INTEREST INCOME
Interest and fees on loans $114,311 $81,768 40%
Interest on investment securities 6,142 5,347 15%
Interest on federal funds sold 334 437 -24%
Total Interest Income 120,787 87,552 38%
INTEREST EXPENSE
Deposits 11,143 8,522 31%
FHLB advances and other borrowings 1,574 1,028 53%
Total Interest Expense 12,717 9,550 33%
Net interest income before provision for losses on loans and loan commitments 108,070 78,002 39%
Provision for losses on loans and loan commitments -- -- 0%
Net interest income after provision for losses on loans and loan commitments 108,070 78,002 39%
NONINTEREST INCOME
Service charges on deposits 9,588 8,410 14%
Gain on sales of loans, net 11,434 9,435 21%
Gain on sale/call of investment securities -- 15 -100%
Other 10,306 7,009 47%
Total Noninterest Income 31,328 24,869 26%
NONINTEREST EXPENSES
Salaries and employee benefits 37,365 27,183 37%
FDIC indemnification impairment 597 -- 0%
Occupancy and equipment 10,103 6,139 65%
Data processing 2,968 1,881 58%
Merger related costs 3,577 -- 0%
Other 19,436 17,000 14%
Total Noninterest Expenses 74,046 52,203 42%
Income before income taxes 65,352 50,668 29%
Income taxes provision 22,446 16,206 39%
NET INCOME $42,906 $34,462 25%
PER COMMON SHARE INFORMATION:
Basic income per common share $0.55 $0.49 13%
Diluted income per common share $0.55 $0.48 13%
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic 78,229,069 70,992,117
Diluted 78,575,728 71,193,058
SUMMARY OF FINANCIAL DATA
(Dollars In Thousands, Except Per Share Data) (Unaudited)
Quarter Ended
AVERAGE BALANCES September 30, 2014 June 30, 2014 September 30, 2013
Average Assets $3,757,520 $3,614,014 $2,798,913
Average Equity 472,697 459,423 359,411
Average Net Loans 3,061,900 2,923,225 2,157,104
Average Deposits 3,017,301 2,896,815 2,219,333
Average Time Deposits of $100,000 or more 930,220 865,110 662,280
Average FHLB & Other Borrowings 150,696 150,280 123,386
Average Interest Earning Assets 3,469,161 3,337,010 2,632,406
Nine Months Ended
AVERAGE BALANCES September 30, 2014 September 30, 2013
Average Assets $3,666,133 $2,764,759
Average Equity 459,966 354,631
Average Net Loans 2,955,695 2,111,912
Average Deposits 2,930,010 2,175,442
Average Time Deposits of $100,000 or more 889,179 610,173
Average FHLB & Other Borrowings 164,640 141,046
Average Interest Earning Assets 3,384,191 2,609,081
Quarter Ended
PROFITABILITY September 30, 2014 June 30, 2014 September 30, 2013
Annualized Return on Average Assets 1.61% 1.62% 1.62%
Annualized Return on Average Equity 12.80% 12.77% 12.61%
Efficiency Ratio 50.12% 52.38% 51.66%
Annualized Operating Expense/Average Assets 2.47% 2.72% 2.55%
Annualized Net Interest Margin 4.26% 4.35% 4.08%
Nine Months Ended
PROFITABILITY September 30, 2014 September 30, 2013
Annualized Return on Average Assets 1.56% 1.66%
Annualized Return on Average Equity 12.44% 12.96%
Efficiency Ratio 53.12% 50.75%
Annualized Operating Expense/Average Assets 2.69% 2.52%
Annualized Net Interest Margin 4.28% 4.02%
DEPOSIT COMPOSITION
September 30, 2014
Cost of
Funds

June 30, 2014
Cost of
Funds

September 30 ,2013
Cost of
Funds
Noninterest Bearing Demand Deposits 28.7% 0.00% 32.0% 0.00% 29.1% 0.00%
Savings & Interest Checking 4.9% 1.31% 5.4% 1.19% 5.7% 1.40%
Money Market Deposits 24.3% 0.68% 25.7% 0.66% 25.8% 0.63%
Time Deposits of $100,000 or More 34.3% 0.72% 29.0% 0.60% 30.3% 0.67%
Other Time Deposits 7.8% 0.79% 8.0% 0.77% 9.1% 0.82%
Total Deposits 100.0% 0.53% 100.0% 0.48% 100.0% 0.53%
CAPITAL RATIOS September 30, 2014 June 30, 2014 September 30 ,2013
Tier 1 Leverage Ratio 12.72% 12.89% 14.83%
Tier 1 Risk-Based Capital Ratio 14.37% 15.05% 18.24%
Total Risk-Based Capital Ratio 15.63% 16.31% 19.50%
Total Shareholders' Equity $475,708 $464,769 $364,316
Book Value Per Common Share $6.07 $5.94 $5.15
Tangible Common Equity Per Common Share * $5.16 $5.02 $5.04
Tangible Common Equity to Tangible Assets ** 10.45% 10.88% 12.63%
* 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
September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013 September 30, 2013
Balance at Beginning of Period $52,669 $53,464 $53,563 $52,397 $54,937
Provision for Losses on Loans -- -- -- -- --
Recoveries on Loans Previously Charged-off 2,222 1,008 1,538 2,717 662
Gross Loan Charge-offs (1,775) (1,803) (1,637) (1,551) (3,202)
Balance at End of Period $53,116 $52,669 $53,464 $53,563 $52,397
Net Loan Charge-offs/Average Net Loans -0.01% 0.03% 0.00% -0.04% 0.12%
Charge-offs/Average Total Loans 0.06% 0.06% 0.06% 0.06% 0.15%
Allowance for Loan Losses/Gross Loans* 1.67% 1.77% 1.86% 1.90% 2.38%
Allowance for Loan Losses/Non-accrual Loans 118.29% 124.34% 124.02% 144.50% 158.57%
Allowance for Loan Losses/Non-performing Loans 118.29% 124.34% 124.02% 143.85% 158.57%
Allowance for Loan Losses/Non-performing Assets 103.20% 107.41% 102.66% 119.46% 155.06%
Allowance for Loan Losses/Classified Loans 48.22% 34.01% 34.01% 34.01% 38.80%
* Excluding held-for-sale loans
NON-PERFORMING ASSETS
(Dollars In Thousands, Net of SBA Guaranty) Quarter Ended
(Unaudited) September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013 September 30, 2013
Non-accrual Loans $44,905 $42,358 $43,109 $37,068 $33,043
Loans 90 days or more past due and still accruing -- -- -- 168 --
Total Non-performing Loans 44,905 42,358 43,109 37,236 33,043
Total OREO 6,565 6,676 8,969 7,600 748
Total Non-performing Assets $51,470 $49,034 $52,078 $44,836 $33,791
Total Non-performing Loans/Gross Loans 1.41% 1.42% 1.48% 1.30% 1.46%
Total Non-performing Assets/Total Assets 1.31% 1.33% 1.43% 1.24% 1.19%
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS
(Dollars In Thousands) (Unaudited) Quarter Ended
September 30, 2014 June 30, 2014 September 30, 2013
Balance at beginning of period $1,061 $1,061 $1,023
Credit for losses on off-balance sheet items -- -- --
Balance at end of period $1,061 $1,061 $1,023
Nine Months Ended
September 30, 2014 September 30, 2013
Balance at beginning of period $1,061 $1,023
Credit for losses on off-balance sheet items -- --
Balance at end of period $1,061 $1,023
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
For the Quarter Ended
September 30, 2014 June 30, 2014 September 30, 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 $2,582,668 $32,868 5.09% $2,497,372 $31,753 5.09% $1,858,507 $23,105 4.97%
Commercial Loans 477,493 5,381 4.51% 421,163 5,120 4.86% 350,379 3,996 4.56%
Consumer Loans 10,942 110 4.02% 13,426 133 3.96% 9,032 71 3.14%
Total Gross Loans 3,071,103 38,359 5.00% 2,931,961 37,006 5.05% 2,217,918 27,172 4.90%
Deferred Fees and Costs \ Loan Fees (9,203) 858 (8,736) 987 (6,077) 741
Total Loans * 3,061,900 39,217 5.12% 2,923,225 37,993 5.20% 2,211,841 27,913 5.05%
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS:
Investment Securities** 348,663 2,018 2.51% 338,060 2,023 2.60% 312,313 1,879 2.64%
Deposits Held In Other Institutions 18,584 66 1.42% 20,539 70 1.36% -- -- 0.00%
Federal Funds Sold & Others 40,014 25 0.25% 55,186 22 0.16% 108,252 148 0.55%
Total Investment Securities and Other Earning Assets 407,261 2,109 2.24% 413,785 2,115 2.21% 420,565 2,027 2.10%
TOTAL INTEREST-EARNING ASSETS $3,469,161 $41,326 4.79% $3,337,010 $40,108 4.83% $2,632,406 $29,940 4.58%
Total Non-Interest Earning Assets 288,359 277,004 166,507
TOTAL ASSETS $3,757,520 $3,614,014 $2,798,913
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money Market $775,914 $1,322 0.68% $770,512 $1,276 0.66% $590,669 $929 0.63%
NOW 30,728 15 0.20% 34,812 16 0.18% 27,507 13 0.19%
Savings 124,674 495 1.59% 120,274 445 1.48% 101,204 437 1.73%
Time Deposits of $100,000 or More 930,220 1,681 0.72% 865,110 1,296 0.60% 662,280 1,109 0.67%
Other Time Deposits 236,724 468 0.79% 235,907 453 0.77% 212,848 435 0.82%
Total Interest Bearing Deposits 2,098,260 3,981 0.76% 2,026,615 3,486 0.69% 1,594,508 2,923 0.73%
BORROWINGS:
FHLB Advances and Other Borrowings 150,696 146 0.39% 150,280 67 0.18% 123,386 37 0.12%
Junior Subordinated Debentures 71,687 431 2.41% 71,631 426 2.38% 61,857 284 1.84%
Total Borrowings 222,383 577 1.04% 221,911 493 0.89% 185,243 321 0.69%
TOTAL INTEREST BEARING LIABILITIES $2,320,643 $4,558 0.79% $2,248,526 $3,979 0.71% $1,779,751 $3,244 0.73%
Non-Interest Bearing Deposits 919,041 870,200 624,825
Other Liabilities 45,139 35,865 34,926
Shareholders' Equity 472,697 459,423 359,411
TOTAL LIABILITIES AND EQUITY $3,757,520 $3,614,014 $2,798,913
NET INTEREST INCOME $36,768 $36,129 $26,696
.
NET INTEREST SPREAD 4.00% 4.12% 3.85%
NET INTEREST MARGIN 4.26% 4.35% 4.08%
* Allowance for loan losses excluded from average total loans and earning assets
** Tax equivalent ratios for investment securities
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
For the Nine Months Ended
September 30, 2014 September 30, 2013
Average Interest Average Average Interest Average
Balance Income/ Yield/ Balance Income/ Yield/
INTEREST EARNING ASSETS Expense Rate Expense Rate
LOANS:
Real Estate Loans $2,509,417 $95,630 5.08% $1,816,439 $67,281 4.94%
Commercial Loans 442,878 15,419 4.64% 348,637 12,020 4.60%
Consumer Loans 12,020 361 4.00% 11,039 226 2.73%
Total Gross Loans 2,964,315 111,410 5.01% 2,176,115 79,527 4.87%
Deferred Fees and Costs \ Loan Fees (8,620) 2,901 (5,386) 2,241
Total Loans * 2,955,695 114,311 5.16% 2,170,729 81,768 5.02%
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS:
Investment Securities** 345,414 6,142 2.57% 319,981 5,347 2.47%
Deposits Held In Other Institutions 20,037 205 1.36% -- -- 0.00%
Federal Funds Sold & Others 63,045 129 0.27% 118,371 437 0.49%
Total Investment Securities and Other Earning Assets 428,496 6,476 2.18% 438,352 5,784 1.93%
TOTAL INTEREST-EARNING ASSETS $3,384,191 $120,787 4.78% $2,609,081 $87,552 4.50%
Total Non-Interest Earning Assets 281,942 155,678
TOTAL ASSETS $3,666,133 $2,764,759
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money Market $777,825 $3,900 0.67% $610,539 $2,875 0.63%
NOW 32,536 46 0.19% 27,132 40 0.20%
Savings 119,946 1,416 1.57% 101,012 1,349 1.78%
Time Deposits of $100,000 or More 889,179 4,462 0.67% 610,173 2,916 0.64%
Other Time Deposits 237,865 1,319 0.74% 223,905 1,342 0.80%
Total Interest Bearing Deposits 2,057,351 11,143 0.72% 1,572,761 8,522 0.72%
BORROWINGS:
FHLB Advances and Other Borrowings 164,640 287 0.23% 141,046 181 0.17%
Junior Subordinated Debentures 71,631 1,287 2.40% 61,857 847 1.83%
Total Borrowings 236,271 1,574 0.89% 202,903 1,028 0.68%
TOTAL INTEREST BEARING LIABILITIES $2,293,622 $12,717 0.74% $1,775,664 $9,550 0.72%
Non-Interest Bearing Deposits 872,659 602,681
Other Liabilities 39,886 31,783
Shareholders' Equity 459,966 354,631
TOTAL LIABILITIES AND EQUITY $3,666,133 $2,764,759
NET INTEREST INCOME $108,070 $78,002
.
NET INTEREST SPREAD 4.04% 3.79%
NET INTEREST MARGIN 4.28% 4.02%
* 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
September 30, 2014 June 30, 2014 September 30, 2013
Total shareholders' equity $475,708 $464,769 $364,316
Goodwill and other intangible assets, net (71,888) (72,206) (7,502)
Tangible common equity $403,820 $392,563 $356,814
Total assets $3,935,798 $3,681,261 $2,832,514
Goodwill and other intangible assets, net (71,888) (72,206) (7,502)
Tangible assets $3,863,910 $3,609,055 $2,825,012
Common shares outstanding 78,306,839 78,276,758 70,770,019
* 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

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