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Wilshire Bancorp Reports Net Income of $13.3 Million or $0.17 per Share for Third Quarter 2015

LOS ANGELES, Oct. 19, 2015 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (NASDAQ:WIBC) (the "Company"), the holding company for Wilshire Bank (the "Bank"), today reported net income of $13.3 million, or $0.17 per diluted common share, for the quarter ended September 30, 2015. This compares to net income of $15.1 million, or $0.19 per diluted common share, for the same period of the prior year, and net income of $15.6 million, or $0.20 per diluted common share, for the second quarter of 2015.

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "We had a very strong quarter of business development with more than $400 million in total loan production. We continue to make progress in building our commercial lending platform, which resulted in more than $100 million in C&I loan production in the third quarter, the highest quarterly production in our history. We are also seeing increasing production from our residential mortgage lending business, which originated over $100 million in loans during the third quarter. The progress we are making in building our C&I and residential mortgage lending businesses is helping us to achieve the more diversified loan portfolio that we are targeting.

"We believe we are well positioned to generate earnings growth going forward. We have excellent liquidity with a loan-to-deposit ratio below our historical range. As we redeploy our excess liquidity into higher-yielding loans and securities, we expect to see an expansion in our net interest margin, which should help drive a higher level of revenue and earnings in future quarters," said Mr. Yoo.

Q3 2015 Summary

  • Net income totaled $13.3 million, or $0.17 per diluted common share, for the third quarter of 2015
  • Total net revenue of $47.0 million for the third quarter of 2015, an increase of 1.3% from the third quarter of 2014
  • Return on average assets of 1.16% and return on average equity of 10.12% for the third quarter of 2015
  • Net interest margin of 3.49% for the third quarter of 2015, a decrease from 3.59% for the second quarter of 2015
  • Loans receivable (net of deferred fees and costs) totaled $3.63 billion at September 30, 2015, an increase of 15% from $3.16 billion at September 30, 2014
  • Total deposits were $3.94 billion at September 30, 2015, an increase of 24% from $3.19 billion at September 30, 2014
  • Demand deposits totaled $1.07 billion at September 30, 2015, an increase of 17% from $914.7 million at September 30, 2014
  • Provision for losses on loans and loan commitments of $700,000 primarily related to loan growth and an increase in unfunded commitments

STATEMENT OF OPERATIONS

Net interest income before provision for losses on loans and loan commitments totaled $37.5 million for the third quarter of 2015, an increase of 1.9% from $36.8 million for the third quarter of 2014, and unchanged from the second quarter of 2015. Relative to the third quarter of 2014, net interest income continues to be positively impacted by an increase in average total loans.

Net interest margin was 3.49% for the third quarter of 2015, compared to 3.59% for the second quarter of 2015, and 4.26% for the third quarter of 2014. The decline in net interest margin from the second to third quarter of 2015 was primarily attributable to the growth of demand deposits and money market accounts which resulted in an increase in cash and cash equivalents.

Loan yields were 4.76% for the third quarter of 2015, compared to 4.78% for the second quarter of 2015, and 5.12% for the third quarter of 2014.

The total cost of deposits was 0.62% for the third quarter of 2015, compared to 0.61% for the second quarter of 2015, and 0.53% for the third quarter of 2014. Compared to the second quarter of 2015, the increase in the cost of deposits for the third quarter of 2015 was primarily due to an increase in rates paid on time deposit accounts.

Non-Interest Income

Total non-interest income was $9.5 million for the third quarter of 2015, compared to $11.3 million for the second quarter of 2015, and $9.6 million for the third quarter of 2014.

The Company recognized $3.2 million in net gain on sales of loans during the third quarter of 2015, compared to $4.2 million for the second quarter of 2015, and $2.4 million for the third quarter of 2014. The decline in net gain on sale of loans for the third quarter of 2015, compared to the previous quarter, was primarily due to a decline in gains from the sale of non-performing loans. Net gain on sale of loans in the third quarter of 2015 consisted of $2.0 million in gains on sales of SBA loans and $1.2 million in gains on sales of residential mortgage loans.

Other non-interest income totaled $3.3 million for the third quarter of 2015, compared to $4.0 million for the second quarter of 2015, and $3.9 million for the third quarter of 2014. The decrease in other non-interest income from the second to third quarter of 2015 was primarily due to a decline in FHLB dividend income.

Non-Interest Expense

Total non-interest expense was $25.8 million for the third quarter of 2015, compared with $24.7 million for the second quarter of 2015, and $23.2 million for the third quarter of 2014. The increase in non-interest expense from the prior quarter was primarily due to an increase in other non-interest expenses that resulted from a reduction in net gain on sale of OREO during the third quarter of 2015.

Total salaries and employee benefits expense was $13.6 million for the third quarter of 2015, compared with $14.2 million for the second quarter of 2015, and $12.3 million for the third quarter of 2014. The decrease in salaries and employee benefits for the third quarter of 2015 compared to the second quarter of 2015 was largely due to a decline in stock compensation expenses which were higher during the second quarter of 2015 due to stock awards that were issued during second quarter.

The Company's operating efficiency ratio was 54.80% for the third quarter of 2015, compared with 50.56% for the second quarter of 2015, and 50.12% for the third quarter of 2014.

BALANCE SHEET

Total loans receivable (net of deferred fees and costs) were $3.63 billion at September 30, 2015, compared to $3.52 billion at June 30, 2015. The increase in loans during the third quarter of 2015 was spread across all of the Company's major portfolios aside from consumer loans.

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

Quarter Ended
(Dollars In Thousands) (Unaudited) September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014 September 30, 2014
Construction $ 18,146 $ 16,050 $ 26,117 $ 21,248 $ 40,062
Real Estate Secured 2,810,420 2,723,458 2,701,800 2,655,251 2,593,242
Commercial & Industrial 789,422 765,655 769,438 610,762 515,831
Consumer 13,284 14,622 15,465 21,036 12,810
Total Loans Receivable * 3,631,272 3,519,785 3,512,820 3,308,297 3,161,945
Loans Held-For-Sale 13,316 25,269 10,204 11,783 16,236
Total Loans * $ 3,644,588 $ 3,545,054 $ 3,523,024 $ 3,320,080 $ 3,178,181
* Total loans receivable and total loans are net of deferred fees and costs as shown in the consolidated balance sheet presentation

The following table shows quarterly loan originations:

Quarter Ended
(Dollars In Thousands) (Unaudited) September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014 September 30, 2014
Real Estate Secured $ 176,605 43% $ 121,066 41% $ 138,145 35% $ 184,477 56% $ 191,272 48%
Commercial & Industrial 107,952 26% 46,438 16% 59,837 15% 73,194 22% 89,166 22%
Consumer 360 0% 124 0% 1,640 0% 3,385 1% 6,560 2%
SBA 21,871 5% 25,648 9% 31,718 8% 34,747 11% 41,373 10%
Residential Mortgage 102,383 25% 89,652 31% 11,357 3% 8,632 4% 20,791 5%
Warehouse Lines of Credit* 7,000 1% 10,000 3% 155,000 39% 23,000 6% 50,000 13%
Total Loan Originations $ 416,171 100% $ 292,928 100% $ 397,697 100% $ 327,435 100% $ 399,162 100%
* Warehouse lines of credit are reported as commercial and industrial loans on the consolidated balance sheet.

Originations for the third quarter of 2015 totaled $416.2 million, compared to $292.9 million for the second quarter of 2015, and $399.2 million for the third quarter of 2014. The increase in loan origination for the three months ended September 30, 2015, compared to the previous quarter, was due to an increase in real estate, commercial and industrial, and residential loans.

Total SBA loans held-for-sale at the end of the third quarter of 2015 were $2.2 million, compared to $5.9 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 $3.94 billion at September 30, 2015, compared with $3.90 billion at June 30, 2015. The increase in total deposits was attributable to growth in lower-cost deposit categories.

CREDIT QUALITY

During the third quarter of 2015, the Company continued to experience general stability in asset quality and a low level of charge-offs. However, due primarily to growth in the loan portfolio, the Company recorded a provision for losses on loans and loan commitments of $700,000 during the third quarter of 2015.

The allowance for loan losses totaled $50.1 million, or 1.38% of gross loans (excluding loans held-for-sale), at September 30, 2015, compared to $48.8 million, also 1.38% of gross loans (excluding loans held-for-sale), at June 30, 2015. The coverage ratio of the allowance for loan losses to non-performing assets was 130.2% at September 30, 2015, compared with 130.5% at June 30, 2015.

Non-Performing Loans

At September 30, 2015, total non-performing loans were $27.2 million, or 0.74% of total gross loans, compared to $30.9 million, or 0.87% of total gross loans, at June 30, 2015.

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

NON-PERFORMING LOANS Quarter Ended
(Dollars In Thousands) (Unaudited) Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
(Net of SBA Guaranty Portions)
Real Estate Secured $ 20,123 $ 23,235 $ 25,329 $ 29,547 $ 37,205
Commercial & Industrial 7,058 7,617 7,193 7,718 7,699
Consumer -- -- -- -- 1
Total Non-Performing Loans $ 27,181 $ 30,852 $ 32,522 $ 37,265 $ 44,905

Net Charge-offs/Recoveries

During the third quarter of 2015, the Company had total gross charge-offs of $1.9 million, and recoveries of $2.7 million, which resulted in net recoveries of $795,000, compared to net recoveries of $651,000 for the second quarter of 2015.

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

GROSS LOAN CHARGE-OFFS Quarter Ended
(Dollars In Thousands) (Unaudited) Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
Real Estate Secured $ 605 $ 249 $ 325 $ 5,461 $ 1,161
Commercial & Industrial 1,270 310 999 852 614
Consumer -- -- -- -- --
Total Loan Charge-Offs $ 1,875 $ 559 $ 1,324 $ 6,313 $ 1,775

LOAN RECOVERIES Quarter Ended
(Dollars In Thousands) (Unaudited) Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
Real Estate Secured $ 1,867 $ 970 $ 193 $ 199 $ 1,688
Commercial & Industrial 803 240 667 1,620 534
Consumer -- -- 10 2 --
Total Loan Recoveries $ 2,670 $ 1,210 $ 870 $ 1,821 $ 2,222

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, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
(Net of SBA Guaranty Portions)
30 - 59 Days Past Due $ 4,911 $ 3,615 $ 7,375 $ 5,165 $ 4,137
60 - 89 Days Past Due 1,143 7,576 421 1,820 4,002
90 Days, and still accruing -- -- -- -- --
Total Delinquent Loans $ 6,054 $ 11,191 $ 7,796 $ 6,985 $ 8,139

TROUBLED DEBT RESTRUCTURED LOANS ("TDR") Quarter Ended
(Dollars In Thousands) (Unaudited) Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
(Net of SBA Guaranty Portions)
Real Estate Secured $ 24,188 $ 29,424 $ 28,612 $ 25,096 $ 31,313
Commercial & Industrial 16,578 13,469 11,682 12,014 11,425
Total TDR Loans $ 40,766 $ 42,893 $ 40,294 $ 37,110 $ 42,738

LOAN CLASSIFICATIONS Quarter Ended
(Dollars In Thousands) (Unaudited) Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
(Net of SBA Guaranty Portions)
Special Mention $ 118,290 $ 86,118 $ 81,049 $ 76,906 $ 62,929
Substandard 82,000 96,666 89,402 82,305 94,854
Doubtful 2,182 5,301 9,822 11,952 15,291
Total Criticized and Classified Loans $ 202,472 $ 188,085 $ 180,273 $ 171,163 $ 173,074
Total Classified Loans $ 84,182 $ 101,967 $ 99,224 $ 94,257 $ 110,145

CAPITAL RATIOS

As of September 30, 2015, 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, 2015
Well Capitalized
Regulatory Requirements
Total Excess Above Well
Capitalized Requirements
Tier 1 Leverage Capital Ratio 11.54% 5.00% $ 295,250
Tier 1 Common Equity Risk-Based Capital Ratio 11.47% 6.50% 195,646
Tier 1 Risk-Based Capital Ratio 13.33% 8.00% 206,048
Total Risk-Based Capital Ratio 14.48% 10.00% 176,536
Tangible Common Equity To Tangible Assets * 9.76% N/A N/A
Tangible Common Equity Per Common Share * $ 5.80 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 20, 2015, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing toll-free 866-515-2912 (domestic) or 617-399-5126 (international) and providing passcode number 83383026.

ABOUT WILSHIRE BANCORP

Headquartered in Los Angeles, Wilshire Bancorp is the parent company of Wilshire Bank, which operates 35 branch offices in California, Texas, Alabama, Georgia, New Jersey, and New York. Wilshire Bancorp also operates six loan production offices of which four are utilized primarily for the origination of loans under the Small Business Administration lending program located in California, Colorado, Georgia, and Washington, and two that are utilized primarily for the origination of residential mortgage loans located in California. Wilshire Bank is a community bank with a focus on commercial real estate lending and general commercial banking, with its primary 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) September 30, June 30, Three Months September 30, Twelve Months
2015 2015 % Change 2014 % Change
ASSETS:
Cash and due from banks $ 487,655 $ 475,834 2% $ 173,586 181%
Federal funds sold and other cash equivalents 601 54 1013% 21 2762%
Total Cash and Cash Equivalents 488,256 475,888 3% 173,607 181%
Deposits held in other financial institutions 7,500 7,750 -3% 9,000 -17%
Investment securities available for sale 386,679 358,331 8% 365,866 6%
Investment securities held to maturity 22 24 -8% 28 -21%
Total Investment Securities 386,701 358,355 8% 365,894 6%
Total Loans Held-For-Sale 13,316 25,269 -47% 16,236 -18%
Real estate construction 18,146 16,050 13% 40,062 -55%
Residential real estate 231,902 192,732 20% 174,466 33%
Commercial real estate 2,578,518 2,530,726 2% 2,418,776 7%
Commercial and industrial 789,422 765,655 3% 515,831 53%
Consumer 13,284 14,622 -9% 12,810 4%
Total loans receivable, net of deferred fees and costs 3,631,272 3,519,785 3% 3,161,945 15%
Allowance for loan losses (50,116) (48,821) 3% (53,116) -6%
Loans Receivable, Net of Allowance for Loan Losses 3,581,156 3,470,964 3% 3,108,829 15%
Accrued interest receivable 8,604 8,635 0% 8,324 3%
Due from customers on acceptances 8,940 3,940 127% 10,350 -14%
Other real estate owned 11,302 6,559 72% 6,565 72%
Premises and equipment 14,328 14,366 0% 12,380 16%
Federal home loan bank (FHLB) stock, at cost 16,539 16,539 0% 16,539 0%
Cash surrender value of life insurance 24,879 23,610 5% 22,945 8%
Investment in affordable housing partnerships 45,435 42,193 8% 45,017 1%
Deferred income taxes 20,086 17,475 15% 27,656 -27%
Servicing assets 19,967 20,123 -1% 17,927 11%
Goodwill 67,473 67,473 0% 67,473 0%
Other assets 25,919 31,958 -19% 27,056 -4%
TOTAL ASSETS $ 4,740,401 $ 4,591,097 3% $ 3,935,798 20%
LIABILITIES AND SHAREHOLDERS' EQUITY:
Non-interest bearing demand deposits $ 1,074,025 $ 1,025,133 5% $ 914,667 17%
Savings and interest checking 161,267 158,734 2% 156,669 3%
Money market deposits 996,899 962,855 4% 772,902 29%
Time deposits in denomination of $100,000 or more 1,440,340 1,475,340 -2% 1,092,058 32%
Other time deposits 269,909 280,894 -4% 249,058 8%
Total Deposits 3,942,440 3,902,956 1% 3,185,354 24%
FHLB borrowings 150,000 50,000 200% 150,000 0%
Acceptance outstanding 8,940 3,940 127% 10,350 -14%
Junior subordinated debentures 71,955 71,895 0% 71,722 0%
Accrued interest payable 2,326 2,373 -2% 2,249 3%
Other liabilities 38,112 44,350 -14% 40,415 -6%
Total Liabilities 4,213,773 4,075,514 3% 3,460,090 22%
Common stock 233,634 232,893 0% 231,715 1%
Retained earnings 287,072 278,503 3% 240,770 19%
Accumulated other comprehensive income 5,922 4,187 41% 3,223 84%
Total Shareholders' Equity 526,628 515,583 2% 475,708 11%
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 4,740,401 $ 4,591,097 3% $ 3,935,798 20%

CONSOLIDATED STATEMENT OF OPERATIONS
Dollars In Thousands, Except Per Share Data) (Unaudited)
Quarter Ended Three Mths Quarter Ended Twelve Mths
September 30, 2015 June 30, 2015 % Change September 30, 2014 % Change
INTEREST INCOME
Interest and fees on loans $ 41,877 $ 41,599 1% $ 39,217 7%
Interest on investment securities 2,022 1,929 5% 2,018 0%
Interest on federal funds sold and others 303 264 15% 91 233%
Total Interest Income 44,202 43,792 1% 41,326 7%
INTEREST EXPENSE
Deposits 6,039 5,661 7% 3,981 52%
FHLB advances and other borrowings 704 658 7% 577 22%
Total Interest Expense 6,743 6,319 7% 4,558 48%
Net interest income before provision for losses on loans and loan commitments 37,459 37,473 0% 36,768 2%
Provision for losses on loans and loan commitments 700 -- 0% -- 0%
Net interest income after provision for losses on loans and loan commitments 36,759 37,473 -2% 36,768 0%
NONINTEREST INCOME
Service charges on deposits 3,084 3,159 -2% 3,268 -6%
Gain on sales of loans, net 3,162 4,184 -24% 2,418 31%
Gain on sale of investment securities -- -- 0% -- 0%
Other 3,281 3,971 -17% 3,912 -16%
Total Noninterest Income 9,527 11,314 -16% 9,598 -1%
NONINTEREST EXPENSES
Salaries and employee benefits 13,639 14,164 -4% 12,261 11%
Occupancy and equipment 3,341 3,196 5% 3,350 0%
Data processing 1,119 1,089 3% 1,210 -8%
Other 7,651 6,218 23% 6,418 19%
Total Noninterest Expenses 25,750 24,667 4% 23,239 11%
Income before income taxes 20,536 24,120 -15% 23,127 -11%
Income taxes provision 7,251 8,567 -15% 7,998 -9%
NET INCOME $ 13,285 $ 15,553 -15% $ 15,129 -12%
PER COMMON SHARE INFORMATION:
Basic income per common share $ 0.17 $ 0.20 -15% $ 0.19 -13%
Diluted income per common share $ 0.17 $ 0.20 -15% $ 0.19 -13%
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic 78,556,455 78,459,708 78,302,251
Diluted 78,907,223 78,818,847 78,619,592

CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
Nine Months Ended Twelve Months
September 30, 2015 September 30,2014 % Change
INTEREST INCOME
Interest and fees on loans $ 123,564 $ 114,311 8%
Interest on investment securities 5,919 6,142 -4%
Interest on federal funds sold and others 759 334 127%
Total Interest Income 130,242 120,787 8%
INTEREST EXPENSE
Deposits 16,797 11,143 51%
FHLB advances and other borrowings 2,022 1,574 28%
Total Interest Expense 18,819 12,717 48%
Net interest income before provision for losses on loans and loan commitments 111,423 108,070 3%
Provision for losses on loans and loan commitments 700 -- 0%
Net interest income after provision for losses on loans and loan commitments 110,723 108,070 2%
NONINTEREST INCOME
Service charges on deposits 9,350 9,588 -2%
Gain on sales of loans, net 14,152 11,434 24%
Gain on sale of investment securities -- -- 0%
Other 12,606 10,306 22%
Total Noninterest Income 36,108 31,328 15%
NONINTEREST EXPENSES
Salaries and employee benefits 40,468 37,365 8%
FDIC indemnification impairment -- 597 -100%
Occupancy and equipment 9,910 10,103 -2%
Data processing 3,250 2,968 10%
Merger related costs -- 3,577 -100%
Other 19,698 19,436 1%
Total Noninterest Expenses 73,326 74,046 -1%
Income before income taxes 73,505 65,352 12%
Income taxes provision 26,048 22,446 16%
NET INCOME $ 47,457 $ 42,906 11%
PER COMMON SHARE INFORMATION:
Basic income per common share $ 0.60 $ 0.55 10%
Diluted income per common share $ 0.60 $ 0.55 10%
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic 78,448,398 78,229,069
Diluted 78,785,778 78,575,728
SUMMARY OF FINANCIAL DATA
(Dollars In Thousands, Except Per Share Data) (Unaudited)
Quarter Ended
AVERAGE BALANCES September 30, 2015 June 30, 2015 September 30, 2014
Average Assets $ 4,592,052 $ 4,472,065 $ 3,757,520
Average Equity 524,962 513,338 472,697
Average Net Loans 3,519,441 3,481,181 3,061,900
Average Deposits 3,893,958 3,736,003 3,017,301
Average Time Deposits of $100,000 or more 1,448,501 1,417,860 930,220
Average FHLB & Other Borrowings 59,783 112,088 150,696
Average Interest Earning Assets 4,308,140 4,197,297 3,469,161
Nine Months Ended
AVERAGE BALANCES September 30, 2015 September 30, 2014
Average Assets $ 4,440,781 $ 3,666,133
Average Equity 512,890 459,966
Average Net Loans 3,451,630 2,955,695
Average Deposits 3,708,226 2,930,010
Average Time Deposits of $100,000 or more 1,388,659 889,179
Average FHLB & Other Borrowings 107,176 164,640
Average Interest Earning Assets 4,161,839 3,384,191
Quarter Ended
PROFITABILITY September 30, 2015 June 30, 2015 September 30, 2014
Annualized Return on Average Assets 1.16% 1.39% 1.61%
Annualized Return on Average Equity 10.12% 12.12% 12.80%
Efficiency Ratio 54.80% 50.56% 50.12%
Annualized Operating Expense/Average Assets 2.24% 2.21% 2.47%
Annualized Net Interest Margin 3.49% 3.59% 4.26%
Nine Months Ended
PROFITABILITY September 30, 2015 September 30, 2014
Annualized Return on Average Assets 1.42% 1.56%
Annualized Return on Average Equity 12.34% 12.44%
Efficiency Ratio 49.70% 53.12%
Annualized Operating Expense/Average Assets 2.20% 2.69%
Annualized Net Interest Margin 3.59% 4.28%
As Of
DEPOSIT COMPOSITION September 30, 2015 Cost of Funds June 30, 2015 Cost of Funds September 30, 2014 Cost of Funds
Noninterest Bearing Demand Deposits 27.2% 0.00% 26.3% 0.00% 28.7% 0.00%
Savings & Interest Checking 4.1% 1.29% 4.0% 1.30% 4.9% 1.31%
Money Market Deposits 25.3% 0.68% 24.7% 0.66% 24.3% 0.68%
Time Deposits of $100,000 or More 36.5% 0.89% 37.8% 0.86% 34.3% 0.72%
Other Time Deposits 6.9% 0.92% 7.2% 0.90% 7.8% 0.79%
Total Deposits 100.0% 0.62% 100.0% 0.61% 100.0% 0.53%
As Of
CAPITAL RATIOS September 30, 2015 June 30, 2015 September 30, 2014
Tier 1 Leverage Ratio 11.54% 11.64% 12.72%
Tier 1 Common Equity Risk-Based Capital Ratio 11.47% 11.91% 14.37%
Tier 1 Risk-Based Capital Ratio 13.33% 13.78% 15.63%
Total Risk-Based Capital Ratio 14.48% 15.03% $ 475,708
Total Shareholders' Equity $ 526,628 $ 515,583 $ 6.07
Book Value Per Common Share $ 6.70 $ 6.57 $ 5.16
Tangible Common Equity Per Common Share * $ 5.80 $ 5.66 10.45%
Tangible Common Equity to Tangible Assets * 9.76% 9.83% September 30, 2014
* Excludes goodwill and other intangible assets

ALLOWANCE FOR LOAN LOSSES
(Dollars In Thousands) (Unaudited)
Quarter Ended
September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014 September 30, 2014
Balance at beginning of period $ 48,821 $ 48,170 $ 48,624 $ 53,116 $ 52,669
Provision for losses on loans 500 -- -- -- --
Recoveries on loans previously charged-off 2,670 1,210 870 1,821 2,222
Gross loan charge-offs (1,875) (559) (1,324) (6,313) (1,775)
Balance at end of period $ 50,116 $ 48,821 $ 48,170 $ 48,624 $ 53,116
Net Loan Charge-offs / Average Net Loans -0.02% -0.02% 0.01% 0.14% -0.01%
Charge-offs / Average Total Loans 0.05% 0.02% 0.04% 0.20% 0.06%
Allowance for Loan Losses / Gross Loans* 1.38% 1.38% 1.37% 1.47% 1.67%
Allowance for Loan Losses / Non-accrual Loans 184.38% 158.24% 148.12% 130.48% 118.29%
Allowance for Loan Losses / Non-performing Loans 184.38% 158.24% 148.12% 130.48% 118.29%
Allowance for Loan Losses / Non-performing Assets 130.23% 130.50% 120,63% 107.61% 103.20%
Allowance for Loan Losses / Classified Loans 59.53% 47.88% 48.55% 51.59% 48.22%
* Excludes held-for-sale loans
NON-PERFORMING ASSETS
(Dollars In Thousands, Net of SBA Guaranty) Quarter Ended
(Unaudited) September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014 September 30, 2014
Non-accrual loans $ 27,181 $ 30,852 $ 32,522 $ 37,265 $ 44,905
Loans 90 days or more past due and still accruing -- -- -- -- --
Total Non-performing Loans 27,181 30,852 32,522 37,265 44,905
Total OREO 11,302 6,559 7,411 7,922 6,565
Total Non-performing Assets $ 38,483 $ 37,411 $ 39,933 $ 45,187 $ 51,470
Total Non-performing Loans/Gross Loans 0.74% 0.87% 0.92% 1.12% 1.41%
Total Non-performing Assets/Total Assets 0.81% 0.81% 0.90% 1.09% 1.31%
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS
(Dollars In Thousands) (Unaudited) Quarter Ended
September 30, 2015 June 30, 2015 September 30, 2014
Balance at beginning of period $ 1,061 $ 1,061 $ 1,061
Provision for losses on loan commitments 200 -- --
Balance at end of period $ 1,261 $ 1,061 $ 1,061
Nine Months Ended
September 30, 2015 September 30, 2014
Balance at beginning of period $ 1,061 $ 1,061
Provision for losses on loan commitments 200 --
Balance at end of period $ 1, 261 $ 1,061
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
For the Quarter Ended
September 30, 2015 June 30, 2015 September 30, 2014
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 $ 2,802,173 $ 33,750 4.82% $ 2,767,138 $ 33,410 4.83% $ 2,582,668 $ 32,868 5.09%
Commercial Loans 714,169 7,116 3.99% 709,662 6,947 3.92% 477,493 5,381 4.51%
Consumer Loans 13,053 108 3.31% 14,413 124 3.44% 10,942 110 4.02%
Total Gross Loans 3,529,395 40,974 4.64% 3,491,213 40,481 4.64% 3,071,103 38,359 5.00%
Deferred Fees and Costs \ Loan Fees (9,954) 903 (10,032) 1,118 (9,203) 858
Total Loans * 3,519,441 41,877 4.76% 3,481,181 41,599 4.78% 3,061,900 39,217 5.12%
INVESTMENT SECURITIES AND
OTHER INTEREST-EARNING ASSETS:
Investment Securities** 355,828 2,022 2.45% 339,876 1,929 2.47% 348,663 2,018 2.51%
Deposits Held In Other Institutions 7,576 31 1.64% 7,986 32 1.60% 18,584 66 1.42%
Federal Funds Sold & Others 425,295 272 0.26% 368,254 232 0.25% 40,014 25 0.25%
Total Investment Securities and Other Earning Assets 788,699 2,325 1.26% 716,116 2,193 1.32% 407,261 2,109 2.24%
TOTAL INTEREST-EARNING ASSETS $ 4,308,140 $ 44,202 4.12% $ 4,197,297 $ 43,792 4.19% $ 3,469,161 $ 41,326 4.79%
Total Non-Interest Earning Assets 283,912 274,768 288,359
TOTAL ASSETS $ 4,592,052 $ 4,472,065 $ 3,757,520
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money Market $ 978,220 $ 1,657 0.68% $ 891,494 $ 1,464 0.66% $ 775,914 $ 1,322 0.68%
NOW 30,916 22 0.29% 28,704 20 0.28% 30,728 15 0.20%
Savings 128,597 493 1.53% 129,805 494 1.52% 124,674 495 1.59%
Time Deposits of $100,000 or More 1,448,501 3,235 0.89% 1,417,860 3,061 0.86% 930,220 1,681 0.72%
Other Time Deposits 273,433 632 0.93% 276,973 622 0.90% 236,724 468 0.79%
Total Interest Bearing Deposits 2,859,667 6,039 0.85% 2,744,836 5,661 0.83% 2,098,260 3,981 0.76%
BORROWINGS:
FHLB Advances and Other Borrowings 59,783 257 1.72% 112,088 220 0.79% 150,696 146 0.39%
Junior Subordinated Debentures 71,916 447 2.49% 71,858 438 2.44% 71,687 431 2.41%
Total Borrowings 131,699 704 2.14% 183,946 658 1.43% 222,383 577 1.04%
TOTAL INTEREST BEARING LIABILITIES $ 2,991,366 $ 6,743 0.90% $2,928,782 $ 6,319 0.86% $ 2,320,643 $ 4,558 0.79%
Non-Interest Bearing Deposits 1,034,291 991,167 919,041
Other Liabilities 41,433 38,778 45,139
Shareholders' Equity 524,962 513,338 472,697
TOTAL LIABILITIES AND EQUITY $ 4,592,052 $ 4,472,065 $ 3,757,520
NET INTEREST INCOME $ 37,459 $ 37,473 $ 36,768
.
NET INTEREST SPREAD 3.22% 3.33% 4.00%
NET INTEREST MARGIN 3.49% 3.59% 4.26%
* 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, 2015 September 30, 2014
Average Interest Average Average Interest Average
Balance Income/ Yield/ Balance Income/ Yield/
INTEREST EARNING ASSETS Expense Rate Expense Rate
LOANS:
Real Estate Loans $ 2,767,504 $ 99,725 4.81% $ 2,509,417 $ 95,630 5.08%
Commercial Loans 680,583 20,345 3.99% 442,878 15,419 4.64%
Consumer Loans 13,535 347 3.42% 12,020 361 4.00%
Total Gross Loans 3,461,622 120,417 4.64% 2,964,315 111,410 5.01%
Deferred Fees and Costs \ Loan Fees (9,992) 3,147 (8,620) 2,901
Total Loans * 3,451,630 123,564 4.77% 2,955,695 114,311 5.16%
INVESTMENT SECURITIES AND
OTHER INTEREST-EARNING ASSETS:
Investment Securities** 351,656 5,919 2.43% 345,414 6,142 2.57%
Deposits Held In Other Institutions 7,853 95 1.61% 20,037 205 1.36%
Federal Funds Sold & Others 350,700 664 0.25% 63,045 129 0.27%
Total Investment Securities and Other Earning Assets 710,209 6,678 1.35% 428,496 6,476 2.18%
TOTAL INTEREST-EARNING ASSETS $ 4,161,839 $ 130,242 4.19% $ 3,384,191 $ 120,787 4.78%
Total Non-Interest Earning Assets 278,942 281,942
TOTAL ASSETS $ 4,440,781 $ 3,666,133
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money Market $ 905,253 $ 4,527 0.67% $ 777,825 $ 3,900 0.67%
NOW 29,623 59 0.27% 32,536 46 0.19%
Savings 129,211 1,489 1.54% 119,946 1,416 1.57%
Time Deposits of $100,000 or More 1,388,659 8,899 0.85% 889,179 4,462 0.67%
Other Time Deposits 272,039 1,823 0.89% 237,865 1,319 0.74%
Total Interest Bearing Deposits 2,724,785 16,797 0.82% 2,057,351 11,143 0.72%
BORROWINGS:
FHLB Advances and Other Borrowings 107,176 709 0.88% 164,640 287 0.23%
Junior Subordinated Debentures 71,858 1,313 2.44% 71,631 1,287 2.40%
Total Borrowings 179,034 2,022 1.51% 236,271 1,574 0.89%
TOTAL INTEREST BEARING LIABILITIES $ 2,903,819 $ 18,819 0.86% $ 2,293,622 $ 12,717 0.74%
Non-Interest Bearing Deposits 983,441 872,659
Other Liabilities 40,631 39,886
Shareholders' Equity 512,890 459,966
TOTAL LIABILITIES AND EQUITY $ 4,440,781 $ 3,666,133
NET INTEREST INCOME $ 111,423 $ 108,070
.
NET INTEREST SPREAD 3.32% 4.04%
NET INTEREST MARGIN 3.59% 4.28%
* 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, 2015 June 30, 2015 September 30, 2014
Total shareholders' equity $ 526,628 $ 515,583 $ 475,708
Goodwill and other intangible assets, net (70,894) (71,141) (71,888)
Tangible common equity $ 455,734 $ 444,442 $ 403,820
Total assets $ 4,740,401 $ 4,591,097 $ 3,935,798
Goodwill and other intangible assets, net (70,894) (71,141) (71,888)
Tangible assets $ 4,669,507 $ 4,519,956 $ 3,863,910
Common shares outstanding 78,598,147 78,495,182 78,306,839
* 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: Alex Ko, EVP & CFO, (213) 427-6560 www.wilshirebank.comSource:Wilshire Bancorp, Inc.