×

Wilshire Bancorp Reports Net Income of $16.1 Million or $0.20 per Share for Fourth Quarter 2014

LOS ANGELES, Jan. 26, 2015 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq:WIBC) (the "Company"), the holding company for Wilshire Bank (the "Bank"), today reported net income of $16.1 million, or $0.20 per diluted common share, for the quarter ended December 31, 2014. This compares to net income of $10.9 million, or $0.15 per diluted common share, for the same period of the prior year, and net income of $15.1 million, or $0.19 per diluted common share, for the third quarter of 2014.

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "We had another strong quarter of business development with $327 million in loan originations, which is an increase of 47% compared to the same quarter in 2013. As a result of the strong marketing team we have built, we have been able to more deeply penetrate our existing markets and generate full year loan growth of 16% in 2014. We are also making good progress towards our goal of building a more diversified loan portfolio, as our commercial portfolio and our residential real estate portfolio are growing at significantly higher rates than our commercial real estate portfolio. Our positive business development trends, continued low credit costs, and disciplined expense control has helped us to deliver a consistently strong level of returns with a return on average assets of 1.57% and a return on average equity of 12.65% for the full year 2014."

"In addition to continuing to expand our customer base in our core markets, we plan to increase our presence in the Southeastern United States, where we are seeing strong growth in the multi-ethnic communities that we serve. We believe this expansion will provide an incremental source of growth, while also helping us to build a stronger, more diversified banking franchise," said Mr. Yoo.

Q4 2014 Summary

  • Net income totaled $16.1 million, or $0.20 per diluted common share, for the fourth quarter of 2014
  • Total net revenue of $47.4 million for the fourth quarter of 2014, an increase of 13.8% from the fourth quarter of 2013
  • Return on average assets of 1.59% and return on average equity of 13.27% for the fourth quarter of 2014
  • Net interest margin of 4.00% for the fourth quarter of 2014, a decrease from 4.26% for the third quarter of 2014
  • Loans receivable (net of deferred fees and costs) totaled $3.31 billion at December 31, 2014, an increase of 17% from $2.82 billion at December 31, 2013
  • Total deposits were $3.40 billion at December 31, 2014, an increase of 18% from $2.87 billion at December 31, 2013
  • Continued improvement in asset quality resulted in no provision for losses on loans and loan commitments for the fourth quarter of 2014

STATEMENT OF OPERATIONS

Net interest income before provision for losses on loans and loan commitments totaled $37.5 million for the fourth quarter of 2014, an increase of 16% from $32.3 million for the fourth quarter of 2013, and an increase of 2% from $36.8 million for the third quarter of 2014. The increase from the prior quarter is primarily attributable to a higher average loan balance. Discount accretion income from loans acquired from Saehan Bancorp and BankAsiana totaled $2.4 million for the fourth quarter of 2014, compared to $2.9 million for the third quarter of 2014.

Net interest margin was 4.00% for the fourth quarter of 2014, compared to 4.26% for the third quarter of 2014, and 4.20% for the fourth quarter of 2013. Excluding the effect of the amortization/accretion of the purchase accounting adjustments for the acquisitions of Saehan Bancorp and BankAsiana, the net interest margin was 3.74% for the fourth quarter of 2014, compared with 3.89% for the third quarter of 2014, and 3.91% for the fourth quarter of 2013. The decrease in net interest margin is attributable to an increase in lower yielding fed funds sold balances and a decline in discount accretion income for the fourth quarter of 2014, compared to the third quarter of 2014 and fourth quarter of 2013.

Loan yields were 5.09% for the fourth quarter of 2014, compared with 5.12% for the third quarter of 2014, and 5.17% for the fourth quarter of 2013. Excluding the effect of the accretion of the purchase accounting adjustments for the acquisitions of Saehan Bancorp and BankAsiana, loan yields were 4.79% for the fourth quarter of 2014, compared to 4.74% for the third quarter of 2014, and 4.86% for the fourth quarter of 2013.

Net interest margin and loan yields excluding the effect of acquisition accounting adjustments are non-GAAP measures. Please refer to the "Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures" table at the end of this press release.

The total cost of deposits was 0.58% for the fourth quarter of 2014, compared with 0.53% for the third quarter of 2014 and 0.53% for the fourth quarter of 2013. The increase in cost of deposits for the fourth quarter of 2014 compared to the third quarter of 2014 and fourth quarter of 2013, was primarily due to an increase in rates on time deposits.

Non-Interest Income

Total non-interest income was $9.9 million for the fourth quarter of 2014, compared to $9.3 million for the fourth quarter of 2013, and $9.6 million for the third quarter of 2014. The increase from the prior quarter was primarily due to an increase in net gain on sale of Small Business Administration ("SBA") loans, while the increase from the same period in 2013 was due to an increase in other non-interest income.

The $3.5 million in net gain on sale of loans recognized during the fourth quarter of 2014 consisted mostly of gains from the sale of SBA loans. Net gain on sale of loans for the third quarter of 2014 was $2.4 million. During the fourth quarter of 2014, the Company sold $35.5 million in SBA loans, compared with $20.3 million sold during the third quarter of 2014.

Non-Interest Expense

Total non-interest expense was $23.5 million for the fourth quarter of 2014, compared with $24.7 million for the fourth quarter of 2013, and $23.2 million for the third quarter of 2014. The increase in non-interest expense from the prior quarter was due to increases in salaries and employee benefits and other non-interest expenses.

Total salaries and employee benefits expense was $12.4 million for the fourth quarter of 2014, compared with $12.9 million for the fourth quarter of 2013, and $12.3 million for the third quarter of 2014.

Other non-interest expense for the fourth quarter of 2014 totaled $6.7 million, compared with $6.3 million for the fourth quarter of 2013, and $6.5 million for the third quarter of 2014. The increase in other non-interest expense during the fourth quarter of 2014 compared to prior quarters was primarily attributable to an increase in expenses related to OREO (other real estate owned).

The Company's operating efficiency ratio was 49.5% for the fourth quarter of 2014, compared with 59.2% for the fourth quarter of 2013, and 50.1% for the third quarter of 2014.

BALANCE SHEET

Total loans receivable (net of deferred fees and costs) were $3.31 billion at December 31, 2014, compared to $3.16 billion at September 30, 2014. The increase in loans during the fourth quarter of 2014 was driven by growth in real estate secured and commercial & industrial loans.

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

Quarter Ended
(Dollars In Thousands) (Unaudited) December 31, 2014 September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013
Construction $21,248 $40,062 $43,292 $42,124 $39,268
Real Estate Secured 2,655,251 2,593,242 2,481,801 2,395,487 2,314,527
Commercial & Industrial 610,762 515,831 431,758 417,956 448,379
Consumer 21,036 12,810 13,044 16,072 14,668
Total Loans Receivable * 3,308,297 3,161,945 2,969,895 2,871,639 2,816,842
Held-For-Sale Loans 11,783 16,236 6,207 27,791 47,557
Total Loans * $3,320,080 $3,178,181 $2,976,102 $2,899,430 $2,864,399
* Total loans receivable and total loans are net of deferred fees and costs as shown in the consolidated balance sheet presentation

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

At December 31, 2014
(Dollars In Thousands) (Unaudited) BankAsiana* Saehan Bank* Mirae Bank* Legacy Wilshire Total
Construction $3,947 $ -- $ -- $17,301 $21,248
Real Estate Secured 101,100 303,699 38,546 2,211,906 2,655,251
Commercial & Industrial 20,749 18,672 2,607 568,734 610,762
Consumer -- 646 -- 20,390 21,036
Total Loans Receivable 125,796 323,017 41,153 2,818,331 3,308,297
Held-For-Sale Loans -- -- -- 11,783 11,783
Total Loans $125,796 $323,017 $41,153 $2,830,114 $3,320,080
* Represents loans balances net of fair value adjustments

The following table shows quarterly loan originations:

Quarter Ended
(Dollars In Thousands) (Unaudited) December 31, 2014 September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013
Real Estate Secured $184,477 56% $191,272 48% $170,042 60% $96,266 49% $132,780 60%
Commercial & Industrial 73,194 22% 89,166 22% 31,058 11% 36,619 18% 30,541 14%
Consumer 3,385 1% 6,560 2% 1,580 1% 632 0% 546 0%
SBA 34,747 11% 41,373 10% 37,004 13% 35,305 18% 44,599 20%
Residential Mortgage Dept. * 31,632 10% 70,791 18% 42,325 15% 29,063 15% 13,858 6%
Total Loan Originations $327,435 100% $399,162 100% $282,009 100% $197,885 100% $222,324 100%
* Originations of warehouse lines of credit are presented under the Residential Mortgage Department as shown above, however, warehouse lines of credit are reported as commercial and industrial loans on the consolidated balance sheet.

Originations for the fourth quarter of 2014 totaled $327.4 million, compared to $399.2 million for the third quarter of 2014, and $222.3 million for the fourth quarter of 2013.

Total SBA loans held-for-sale at the end of the fourth quarter of 2014 were $11.1 million, compared to $16.2 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 $3.40 billion at December 31, 2014, compared with $3.19 billion at September 30, 2014. The increase in total deposits was primarily attributable to growth in time deposits, which was partially offset by a decrease in money market deposits.

CREDIT QUALITY

During the fourth quarter of 2014, the Company continued to experience a general improvement in asset quality including a decline in non-accrual and classified loans. As a result of the improved credit quality, the Company determined that no provision for losses on loans and loan commitments was required for the fourth quarter of 2014. The allowance for loan losses totaled $48.6 million, or 1.47% of gross loans (excluding loans held-for-sale), at December 31, 2014, compared to $53.1 million, or 1.67% of gross loans (excluding loans held-for-sale), at September 30, 2014. Acquired loans, included in the allowance coverage ratios, were recorded at fair value and the remaining discount on these loans was approximately $22.1 million at December 31, 2014. The coverage ratio of the allowance for loan losses to non-performing assets was 107.6% at December 31, 2014, compared with 103.2% at September 30, 2014.

Non-Performing Loans

At December 31, 2014, total non-performing loans were $37.3 million, or 1.12% of total gross loans, compared to $44.9 million, or 1.41% of total gross loans, at September 30, 2014.

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

NON-PERFORMING LOANS Quarter Ended
(Dollars In Thousands) (Unaudited) Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013
(Net of SBA Guaranty Portions)
Construction $ -- $ -- $ -- $ -- $2,471
Real Estate Secured 29,547 37,205 35,585 35,988 33,569
Commercial & Industrial 7,718 7,699 6,769 7,121 1,196
Consumer -- 1 4 -- --
Total Non-Performing Loans $37,265 $44,905 $42,358 $43,109 $37,236

Net Charge-offs/Recoveries

During the fourth quarter of 2014, the Company had total gross charge-offs of $6.3 million and recoveries of $1.8 million which resulted in total net charge-offs of $4.5 million for the fourth quarter of 2014, compared to net recoveries of $447,000 for the third quarter of 2014. The gross charge-offs in the fourth quarter of 2014 primarily consisted of $2.7 million in charge-offs of commercial real estate loans that had previously been on non-accrual status and related to one borrower, and $1.3 million in charge-offs related to former Mirae Bank loans.

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

GROSS LOAN CHARGE-OFFS Quarter Ended
(Dollars In Thousands) (Unaudited) Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013
Real Estate Secured $5,461 $1,161 $782 $672 $552
Commercial & Industrial 852 614 1,021 964 997
Consumer -- -- -- 1 2
Total Loan Charge-Offs $6,313 $1,775 $1,803 $1,637 $1,551
LOAN RECOVERIES Quarter Ended
(Dollars In Thousands) (Unaudited) Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013
Real Estate Secured $199 $1,688 $586 $1,028 $2,038
Commercial & Industrial 1,620 534 408 510 679
Consumer 2 -- 14 -- --
Total Loan Recoveries $1,821 $2,222 $1,008 $1,538 $2,717

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

DELINQUENT LOANS -- By Days Past Due Quarter Ended
(Dollars In Thousands) (Unaudited) Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013
(Net of SBA Guaranty Portions)
30 - 59 Days Past Due $5,165 $4,137 $4,556 $5,756 $2,846
60 - 89 Days Past Due 1,820 4,002 2,992 1,526 2,527
90 Days, and still accruing -- -- -- -- 167
Total Delinquent Loans $6,985 $8,139 $7,548 $7,282 $5,540
TROUBLED DEBT RESTRUCTURED LOANS ("TDR") Quarter Ended
(Dollars In Thousands) (Unaudited) Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013
(Net of SBA Guaranty Portions)
Real Estate Secured $25,096 $31,313 $33,349 $34,565 $30,008
Commercial & Industrial 10,900 11,425 5,542 5,563 6,212
Total TDR Loans $35,996 $42,738 $38,891 $40,128 $36,220
LOAN CLASSIFICATIONS Quarter Ended
(Dollars In Thousands) (Unaudited) Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013
(Net of SBA Guaranty Portions)
Special Mention $76,906 $62,929 $88,382 $101,627 $100,798
Substandard 82,305 94,854 110,462 127,996 149,479
Doubtful 11,952 15,291 18,040 19,931 8,015
Total Criticized and Classified Loans $171,163 $173,074 $216,884 $249,554 $258,292
Total Classified Loans $94,257 $110,145 $128,502 $147,927 $157,494

CAPITAL RATIOS

As of December 31, 2014, all of the Company's capital ratios remain in excess of "well capitalized" regulatory requirements as shown in the following table:

Well Capitalized Total Excess Above
(Dollars In Thousands, Except Per Share Info) Regulatory Well Capitalized
December 31, 2014 Requirements Requirements
Tier 1 Leverage Capital Ratio 12.11% 5.00% $282,191
Tier 1 Risk-Based Capital Ratio 14.13% 6.00% $276,602
Total Risk-Based Capital Ratio 15.38% 10.00% $183,112
Tangible Common Equity To Tangible Assets * 10.23% N/A N/A
Tangible Common Equity Per Common Share * $5.33 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 January 27, 2015, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing 800-299-9630 (domestic) or 617-786-2904 (international) and providing passcode number 82609103.

ABOUT WILSHIRE BANCORP

Headquartered in Los Angeles, Wilshire Bancorp is the parent company of Wilshire Bank, which operates 33branch offices in California, Texas, New Jersey and New York, and 6 loan production offices in Dallas, TX, Palisades Park, NJ, Atlanta, GA, Aurora, CO, Newark, CA, and Federal Way, 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 reports filed with or furnished to 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, expect as required by applicable law. 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) December 31, September 30, Three Months December 31, Twelve Months
2014 2014 % Change 2013 % Change
ASSETS:
Cash and due from banks $233,699 $173,586 35% $124,064 88%
Federal funds sold and other cash equivalents 254 21 1110% 46,590 -99%
Total Cash and Cash Equivalents 233,953 173,607 35% 170,654 37%
Deposits held in other financial institutions 8,000 9,000 -11% 21,019 -62%
Investment securities available for sale 388,367 365,866 6% 352,437 10%
Investment securities held to maturity 26 28 -7% 35 -26%
Total Investment Securities 388,393 365,894 6% 352,472 10%
Total Loans Held-For-Sale 11,783 16,236 -27% 47,557 -75%
Real estate construction 21,248 40,062 -47% 39,268 -46%
Residential real estate 183,665 174,466 5% 124,373 48%
Commercial real estate 2,471,586 2,418,776 2% 2,190,154 13%
Commercial and industrial 610,762 515,831 18% 448,379 36%
Consumer 21,036 12,810 64% 14,668 43%
Total loans receivable, net of deferred fees and costs 3,308,297 3,161,945 5% 2,816,842 17%
Allowance for loan losses (48,624) (53,116) -8% (53,563) -9%
Loans Receivable, Net of Allowance for Loan Losses 3,259,673 3,108,829 5% 2,763,279 18%
Accrued interest receivable 8,792 8,324 6% 8,350 5%
Due from customers on acceptances 5,611 10,350 -46% 1,517 270%
Other real estate owned 7,922 6,565 21% 7,600 4%
Premises and equipment 13,881 12,380 12% 13,862 0%
Federal home loan bank (FHLB) stock, at cost 16,539 16,539 0% 15,983 3%
Cash surrender value of life insurance 23,330 22,945 2% 22,519 4%
Investment in affordable housing partnerships 44,077 45,017 -2% 43,316 2%
Deferred income taxes 22,271 27,656 -19% 39,672 -44%
Servicing assets 18,031 17,927 1% 16,108 12%
Goodwill 67,473 67,473 0% 67,528 0%
FDIC indemnification asset -- -- 0% 4,856 -100%
Other assets 25,740 27,056 -5% 21,443 20%
TOTAL ASSETS $4,155,469 $3,935,798 6% $3,617,735 15%
LIABILITIES AND SHAREHOLDERS' EQUITY:
Non-interest bearing demand deposits $915,413 $914,667 0% $832,152 10%
Savings and interest checking 160,717 156,669 3% 145,549 10%
Money market deposits 765,892 772,902 -1% 780,280 -2%
Time deposits in denomination of $100,000 or more 1,291,844 1,092,058 18% 870,074 48%
Other time deposits 267,393 249,058 7% 243,455 10%
Total Deposits 3,401,259 3,185,354 7% 2,871,510 18%
FHLB borrowings 150,000 150,000 0% 190,325 -21%
Acceptance outstanding 5,611 10,350 -46% 1,517 270%
Junior subordinated debentures 71,779 71,722 0% 71,550 0%
Accrued interest payable 2,228 2,249 -1% 2,418 -8%
Other liabilities 35,181 40,415 -13% 40,997 -14%
Total Liabilities 3,666,058 3,460,090 6% 3,178,317 15%
Common stock 232,001 231,715 0% 229,836 1%
Retained earnings 252,957 240,770 5% 209,605 21%
Accumulated other comprehensive income 4,453 3,223 38% (23) N/A
Total Shareholders' Equity 489,411 475,708 3% 439,418 11%
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $4,155,469 $3,935,798 6% $3,617,735 15%
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
Quarter Ended Three Mths Quarter Ended Twelve Mths
December 31, 2014 September 30, 2014 % Change December 31, 2013 % Change
INTEREST INCOME
Interest and fees on loans $40,709 $39,217 4% $33,954 20%
Interest on investment securities 2,053 2,018 2% 2,113 -3%
Interest on federal funds sold and others 155 91 70% 120 29%
Total Interest Income 42,917 41,326 4% 36,187 19%
INTEREST EXPENSE
Deposits 4,783 3,981 20% 3,446 39%
FHLB advances and other borrowings 667 577 16% 413 62%
Total Interest Expense 5,450 4,558 20% 3,859 41%
Net interest income before provision for losses on loans and loan commitments 37,467 36,768 2% 32,328 16%
Provision for losses on loans and loan commitments -- -- 0% -- 0%
Net interest income after provision for losses on loans and loan commitments 37,467 36,768 2% 32,328 16%
NONINTEREST INCOME
Service charges on deposits 3,105 3,268 -5% 3,002 3%
Gain on sales of loans, net 3,528 2,418 46% 3,980 -11%
Gain on sale/call of investment securities -- -- 0% 4 -100%
Other 3,280 3,912 -16% 2,328 41%
Total Noninterest Income 9,913 9,598 3% 9,314 6%
NONINTEREST EXPENSES
Salaries and employee benefits 12,359 12,261 1% 12,948 -5%
FDIC indemnification impairment -- -- 0% -- 0%
Occupancy and equipment 3,385 3,311 2% 2,712 25%
Data processing 1,030 1,210 -15% 920 12%
Merger related costs -- -- 0% 1,785 -100%
Other 6,694 6,457 4% 6,288 6%
Total Noninterest Expenses 23,468 23,239 1% 24,653 -5%
Income before income taxes 23,912 23,127 3% 16,989 41%
Income taxes provision 7,809 7,998 -2% 6,075 29%
NET INCOME $16,103 $15,129 6% $10,914 48%
PER COMMON SHARE INFORMATION:
Basic income per common share $0.21 $0.19 6% $0.15 40%
Diluted income per common share $0.20 $0.19 6% $0.15 40%
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic 78,315,686 78,302,251 74,082,711
Diluted 78,628,965 78,619,592 74,462,668
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
Year Ended Twelve Months
December 31, 2014 December 31, 2013 % Change
INTEREST INCOME
Interest and fees on loans $155,020 $115,722 34%
Interest on investment securities 8,195 7,460 10%
Interest on federal funds sold 489 557 -12%
Total Interest Income 163,704 123,739 32%
INTEREST EXPENSE
Deposits 15,926 11,968 33%
FHLB advances and other borrowings 2,241 1,441 56%
Total Interest Expense 18,167 13,409 35%
Net interest income before provision for losses on loans and loan commitments 145,537 110,330 32%
Provision for losses on loans and loan commitments -- -- 0%
Net interest income after provision for losses on loans and loan commitments 145,537 110,330 32%
NONINTEREST INCOME
Service charges on deposits 12,693 11,412 11%
Gain on sales of loans, net 14,962 13,415 12%
Gain on sale/call of investment securities -- 19 -100%
Other 13,586 9,337 46%
Total Noninterest Income 41,241 34,183 21%
NONINTEREST EXPENSES
Salaries and employee benefits 49,724 40,131 24%
FDIC indemnification impairment 597 -- 0%
Occupancy and equipment 13,371 8,851 51%
Data processing 3,998 2,801 43%
Merger related costs 3,577 2,797 28%
Other 26,247 22,276 18%
Total Noninterest Expenses 97,514 76,856 27%
Income before income taxes 89,264 67,657 32%
Income taxes provision 30,255 22,281 36%
NET INCOME $59,009 $45,376 30%
PER COMMON SHARE INFORMATION:
Basic income per common share $0.75 $0.63 19%
Diluted income per common share $0.75 $0.63 19%
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic 78,250,901 71,771,116
Diluted 78,591,374 72,037,516
SUMMARY OF FINANCIAL DATA
(Dollars In Thousands, Except Per Share Data) (Unaudited)
Quarter Ended
AVERAGE BALANCES December 31, 2014 September 30, 2014 December 31, 2013
Average Assets $4,049,930 $3,757,520 $3,306,168
Average Equity 485,482 472,697 401,153
Average Net Loans 3,200,538 3,061,900 2,626,557
Average Deposits 3,292,557 3,017,301 2,610,689
Average Time Deposits of $100,000 or more 1,211,738 930,220 801,836
Average FHLB & Other Borrowings 150,000 150,696 185,182
Average Interest Earning Assets 3,764,271 3,469,161 3,093,084
Year Ended
AVERAGE BALANCES December 31, 2014 December 31, 2013
Average Assets $3,762,400 $2,901,224
Average Equity 466,398 366,357
Average Net Loans 3,017,409 2,285,623
Average Deposits 3,021,392 2,285,148
Average Time Deposits of $100,000 or more 970,481 658,483
Average FHLB & Other Borrowings 160,950 152,171
Average Interest Earning Assets 3,479,993 2,731,077
Quarter Ended
PROFITABILITY December 31, 2014 September 30, 2014 December 31, 2013
Annualized Return on Average Assets 1.59% 1.61% 1.32%
Annualized Return on Average Equity 13.27% 12.80% 10.88%
Efficiency Ratio 49.53% 50.12% 59.20%
Annualized Operating Expense/Average Assets 2.32% 2.47% 2.98%
Annualized Net Interest Margin 4.00% 4.26% 4.20%
Year Ended
PROFITABILITY December 31, 2014 December 31, 2013
Annualized Return on Average Assets 1.57% 1.56%
Annualized Return on Average Equity 12.65% 12.39%
Efficiency Ratio 52.21% 53.18%
Annualized Operating Expense/Average Assets 2.59% 2.65%
Annualized Net Interest Margin 4.20% 4.07%
Cost of Cost of Cost of
DEPOSIT COMPOSITION December 31, 2014 Funds September 30, 2014 Funds December 31, 2013 Funds
Noninterest Bearing Demand Deposits 26.9% 0.00% 28.7% 0.00% 29.0% 0.00%
Savings & Interest Checking 4.7% 1.33% 4.9% 1.31% 5.1% 1.35%
Money Market Deposits 22.5% 0.71% 24.3% 0.68% 27.1% 0.65%
Time Deposits of $100,000 or More 38.0% 0.79% 34.3% 0.72% 30.3% 0.69%
Other Time Deposits 7.9% 0.84% 7.8% 0.79% 8.5% 0.81%
Total Deposits 100.0% 0.58% 100.0% 0.53% 100.0% 0.53%
CAPITAL RATIOS December 31, 2014 September 30, 2014 December 31, 2013
Tier 1 Leverage Ratio 12.11% 12.72% 13.44%
Tier 1 Risk-Based Capital Ratio 14.13% 14.37% 14.79%
Total Risk-Based Capital Ratio 15.38% 15.63% 16.05%
Total Shareholders' Equity $489,411 $475,708 $439,418
Book Value Per Common Share $6.25 $6.07 $5.63
Tangible Common Equity Per Common Share * $5.33 $5.16 $4.70
Tangible Common Equity to Tangible Assets ** 10.23% 10.45% 10.34%
* 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
December 31, 2014 September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013
Balance at Beginning of Period $53,116 $52,669 $53,464 $53,563 $52,397
Provision for Losses on Loans -- -- -- -- --
Recoveries on Loans Previously Charged-off 1,821 2,222 1,008 1,538 2,717
Gross Loan Charge-offs (6,313) (1,775) (1,803) (1,637) (1,551)
Balance at End of Period $48,624 $53,116 $52,669 $53,464 $53,563
Net Loan Charge-offs/Average Net Loans 0.14% -0.01% 0.03% 0.00% -0.04%
Charge-offs/Average Total Loans 0.20% 0.06% 0.06% 0.06% 0.06%
Allowance for Loan Losses/Gross Loans* 1.47% 1.67% 1.77% 1.86% 1.90%
Allowance for Loan Losses/Non-accrual Loans 130.48% 118.29% 124.34% 124.02% 144.50%
Allowance for Loan Losses/Non-performing Loans 130.48% 118.29% 124.34% 124.02% 143.85%
Allowance for Loan Losses/Non-performing Assets 107.61% 103.20% 107.41% 102.66% 119.46%
Allowance for Loan Losses/Classified Loans 51.59% 48.22% 34.01% 34.01% 34.01%
* Excluding held-for-sale loans
NON-PERFORMING ASSETS
(Dollars In Thousands, Net of SBA Guaranty) Quarter Ended
(Unaudited) December 31, 2014 September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013
Non-accrual Loans $37,265 $44,905 $42,358 $43,109 $37,068
Loans 90 days or more past due and still accruing -- -- -- -- 168
Total Non-performing Loans 37,265 44,905 42,358 43,109 37,236
Total OREO 7,922 6,565 6,676 8,969 7,600
Total Non-performing Assets $45,187 $51,470 $49,034 $52,078 $44,836
Total Non-performing Loans/Gross Loans 1.12% 1.41% 1.42% 1.48% 1.30%
Total Non-performing Assets/Total Assets 1.09% 1.31% 1.33% 1.43% 1.24%
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS
(Dollars In Thousands) (Unaudited) Quarter Ended
December 31, 2014 September 30, 2014 December 31, 2013
Balance at beginning of period $1,061 $1,061 $1,023
Provision for losses on off-balance sheet items -- -- 38
Balance at end of period $1,061 $1,061 $1,061
Year Ended
December 31, 2014 December 31, 2013
Balance at beginning of period $1,061 $1,023
Provision for losses on off-balance sheet items -- 38
Balance at end of period $1,061 $1,061
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
For the Quarter Ended
December 31, 2014 September 30, 2014 December 31, 2013
Average Interest Average Average Interest Average Average Interest Average
INTEREST EARNING ASSETS Balance Income/ Yield/ Balance Income/ Yield/ Balance Income/ Yield/
Expense Rate Expense Rate Expense Rate
LOANS:
Real Estate Loans $2,666,855 $33,339 5.00% $2,582,668 $32,868 5.09% $2,211,155 $27,780 5.03%
Commercial Loans 530,293 5,717 4.31% 477,493 5,381 4.51% 411,421 5,143 5.00%
Consumer Loans 13,162 129 3.92% 10,942 110 4.02% 10,647 100 3.76%
Total Gross Loans 3,210,310 39,185 4.88% 3,071,103 38,359 5.00% 2,633,223 33,023 5.02%
Deferred Fees and Costs \ Loan Fees (9,772) 1,524 (9,203) 858 (6,666) 931
Total Loans * 3,200,538 40,709 5.09% 3,061,900 39,217 5.12% 2,626,557 33,954 5.17%
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS:
Investment Securities** 366,229 2,053 2.43% 348,663 2,018 2.51% 360,675 2,113 2.55%
Deposits Held In Other Institutions 8,402 34 1.62% 18,584 66 1.42% -- -- 0.00%
Federal Funds Sold & Others 189,102 121 0.26% 40,014 25 0.25% 105,852 120 0.45%
Total Investment Securities and Other Earning Assets 563,733 2,208 1.69% 407,261 2,109 2.24% 466,527 2,233 2.07%
TOTAL INTEREST-EARNING ASSETS $3,764,271 $42,917 4.58% $3,469,161 $41,326 4.79% $3,093,084 $36,187 4.70%
Total Non-Interest Earning Assets 285,659 288,359 213,084
TOTAL ASSETS $4,049,930 $3,757,520 $3,306,168
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money Market $748,031 $1,320 0.71% $775,914 $1,322 0.68% $687,948 $1,121 0.65%
NOW 31,364 17 0.22% 30,728 15 0.20% 29,212 15 0.21%
Savings 127,610 510 1.60% 124,674 495 1.59% 109,304 452 1.65%
Time Deposits of $100,000 or More 1,211,738 2,387 0.79% 930,220 1,681 0.72% 801,836 1,384 0.69%
Other Time Deposits 262,777 549 0.84% 236,724 468 0.79% 231,821 474 0.82%
Total Interest Bearing Deposits 2,381,520 4,783 0.80% 2,098,260 3,981 0.76% 1,860,121 3,446 0.74%
BORROWINGS:
FHLB Advances and Other Borrowings 150,000 235 0.63% 150,696 146 0.39% 185,182 64 0.14%
Junior Subordinated Debentures 71,742 432 2.41% 71,687 431 2.41% 66,275 349 2.11%
Total Borrowings 221,742 667 1.20% 222,383 577 1.04% 251,457 413 0.66%
TOTAL INTEREST BEARING LIABILITIES $2,603,262 $5,450 0.84% $2,320,643 $4,558 0.79% $2,111,578 $3,859 0.73%
Non-Interest Bearing Deposits 911,037 919,041 750,568
Other Liabilities 50,149 45,139 42,869
Shareholders' Equity 485,482 472,697 401,153
TOTAL LIABILITIES AND EQUITY $4,049,930 $3,757,520 $3,306,168
NET INTEREST INCOME $37,467 $36,768 $32,328
.
NET INTEREST SPREAD 3.74% 4.00% 3.97%
NET INTEREST MARGIN 4.00% 4.26% 4.20%
* 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 Year Ended
December 31, 2014 December 31, 2013
Average Interest Average Average Interest Average
INTEREST EARNING ASSETS Balance Income/ Yield/ Balance Income/ Yield/
Expense Rate Expense Rate
LOANS:
Real Estate Loans $2,549,100 $128,969 5.06% $1,915,929 $95,060 4.96%
Commercial Loans 464,911 21,136 4.55% 364,462 17,162 4.71%
Consumer Loans 12,308 490 3.98% 10,940 327 2.99%
Total Gross Loans 3,026,319 150,595 4.98% 2,291,331 112,549 4.91%
Deferred Fees and Costs \ Loan Fees (8,910) 4,425 (5,708) 3,173
Total Loans * 3,017,409 155,020 5.14% 2,285,623 115,722 5.06%
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS:
Investment Securities** 350,661 8,195 2.54% 330,238 7,460 2.49%
Deposits Held In Other Institutions 17,105 238 1.39% -- -- 0.00%
Federal Funds Sold & Others 94,818 251 0.27% 115,216 557 0.48%
Total Investment Securities and Other Earning Assets 462,584 8,684 2.03% 445,454 8,017 1.97%
TOTAL INTEREST-EARNING ASSETS $3,479,993 $163,704 4.72% $2,731,077 $123,739 4.56%
Total Non-Interest Earning Assets 282,407 170,147
TOTAL ASSETS $3,762,400 $2,901,224
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money Market $770,316 $5,219 0.68% $630,050 $3,996 0.63%
NOW 32,240 63 0.20% 27,656 55 0.20%
Savings 121,878 1,926 1.58% 103,102 1,801 1.75%
Time Deposits of $100,000 or More 970,481 6,849 0.71% 658,483 4,300 0.65%
Other Time Deposits 244,144 1,869 0.77% 225,900 1,816 0.80%
Total Interest Bearing Deposits 2,139,059 15,926 0.75% 1,645,191 11,968 0.73%
BORROWINGS:
FHLB Advances and Other Borrowings 160,950 522 0.32% 152,171 244 0.16%
Junior Subordinated Debentures 71,659 1,719 2.40% 62,971 1,197 1.90%
Total Borrowings 232,609 2,241 0.96% 215,142 1,441 0.67%
TOTAL INTEREST BEARING LIABILITIES $2,371,668 $18,167 0.77% $1,860,333 $13,409 0.72%
Non-Interest Bearing Deposits 882,333 639,957
Other Liabilities 42,001 34,577
Shareholders' Equity 466,398 366,357
TOTAL LIABILITIES AND EQUITY $3,762,400 $2,901,224
NET INTEREST INCOME $145,537 $110,330
.
NET INTEREST SPREAD 3.96% 3.84%
NET INTEREST MARGIN 4.20% 4.07%
* 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
December 31, 2014 September 30, 2014 December 31, 2013
Total shareholders' equity $489,411 $475,708 $439,418
Goodwill and other intangible assets, net (71,628) (71,888) (72,752)
Tangible common equity $417,783 $403,820 $366,666
Total assets $4,155,469 $3,935,798 $3,617,735
Goodwill and other intangible assets, net (71,628) (71,888) (72,752)
Tangible assets $4,083,841 $3,863,910 $3,544,983
Common shares outstanding 78,322,462 78,306,839 78,061,307
NET INTEREST MARGIN EXCLUDING THE EFFECT OF ACQUISITION ACCOUNTING ADJUSTMENTS
(Dollars In Thousands) (Unaudited)
Quarter Ended
December 31, 2014 September 30, 2014 December 31, 2013
Net interest margin, excluding effect of acquisition accounting adjustments for Saehan Bancorp and BankAsiana 3.74% 3.89% 3.91%
Acquisition accounting adjustments:
Loan discount accretion 0.25% 0.34% 0.26%
Time deposit premium amortization 0.02% 0.01% 0.03%
FHLB borrowing premium amortization 0.00% 0.03% 0.00%
Junior subordinated debt discount accretion -0.01% -0.01% 0.00%
Reported net interest margin 4.00% 4.26% 4.20%
Loan yield, excluding effect of acquisition accounting adjustments for Saehan Bancorp and BankAsiana 4.79% 4.74% 4.86%
Acquisition accounting adjustments:
Loan discount accretion 0.30% 0.38% 0.31%
Reported loan yield 5.09% 5.12% 5.17%
* Tangible Common Equity, Tangible Assets, and Net Interest Margin and Loan Yields Excluding The Effect of Acquisition Accounting Adjustments 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.