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Wilshire Bancorp Reports Net Income of $13.9 Million or $0.18 Per Share for Fourth Quarter 2015

LOS ANGELES, Jan. 25, 2016 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (NASDAQ:WIBC) (the “Company”), the holding company for Wilshire Bank (the “Bank”), today reported net income of $13.9 million, or $0.18 per diluted common share, for the quarter ended December 31, 2015. This compares to net income of $16.1 million, or $0.20 per diluted common share, for the same period of the prior year, and net income of $13.3 million, or $0.17 per diluted common share, for the third quarter of 2015. Excluding $994,000 in non-deductible merger-related costs related to the BBCN Bancorp Inc. (“BBCN”) merger of equals, net income was $14.9 million, or $0.19 per diluted common share, for the fourth quarter of 2015.*

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, “We finished 2015 with excellent momentum, generating more than $500 million in loan originations, a historical high. During the fourth quarter, we received strong contributions from most of our major lending areas including commercial real estate, commercial and industrial, and Small Business Administration (“SBA”). With our strong loan production in the second half of the year, we were able to increase our total loan portfolio by 16% in 2015, while experiencing positive trends in asset quality.

“We were also able to effectively redeploy a significant portion of our excess liquidity during the fourth quarter by funding our strong loan production, investing in our securities portfolio, and allowing certain higher cost deposits to run-off. As a result, our net interest margin increased seven basis points during the fourth quarter to 3.56%.

“We are very excited about our pending merger of equals with BBCN Bancorp and we look forward to the opportunity to better serve our markets as part of the premier Korean-American bank in the United States,” said Mr. Yoo.

Q4 2015 Summary

  • Net income totaled $13.9 million, or $0.18 per diluted common share, for the fourth quarter of 2015
  • Return on average assets of 1.18% and return on average equity of 10.43% for the fourth quarter of 2015
  • Net interest margin of 3.56% for the fourth quarter of 2015, an increase from 3.49% for the third quarter of 2015
  • Improvement in credit quality from the third of 2015 to fourth quarter of 2015 with a decline in non-accrual, delinquencies, TDR, and classified loans
  • Net recoveries increased from $795,000 for the third quarter of 2015, to $2.3 million for the fourth quarter of 2015
  • Loan originations of $502.9 million during the fourth quarter of 2015 compared to $327.4 million for the fourth quarter of 2014
  • Loans receivable (net of deferred fees and costs) totaled $3.82 billion at December 31, 2015, an increase of 15% from $3.31 billion at December 31, 2014
  • Total deposits were $3.84 billion at December 31, 2015, an increase of 13% from $3.40 billion at December 31, 2014
  • Demand deposits totaled $1.09 billion at December 31, 2015, an increase of 19% from $915.4 million at December 31, 2014
  • Merger-related costs of $994,000 related to the pending merger of equals with BBCN

* “Net income and earnings per share before merger-related costs” 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 Net income and earnings per share before merger-related costs to Net income and earnings per share.

STATEMENT OF OPERATIONS

Net interest income before provision for losses on loans and loan commitments totaled $39.4 million for the fourth quarter of 2015, an increase of 5.2% from $37.5 million for both the fourth quarter of 2014 and the third quarter of 2015. Relative to the fourth quarter of 2014 and third quarter of 2015, net interest income was positively impacted by an increase in average total loans and investments securities.

Net interest margin was 3.56% for the fourth quarter of 2015, compared to 3.49% for the third quarter of 2015, and 4.00% for the fourth quarter of 2014. The increase in net interest margin from the third to fourth quarter of 2015 was attributable to an increase in average loans and the deployment of lower yielding excess cash.

Loan yields were 4.80% for the fourth quarter of 2015, compared to 4.76% for the third quarter of 2015, and 5.09% for the fourth quarter of 2014.

The total cost of deposits was 0.61% for the fourth quarter of 2015, compared to 0.62% for the third quarter of 2015, and 0.58% for the fourth quarter of 2014. Compared to the third quarter of 2015, the decrease in the cost of deposits for the fourth quarter of 2015 was primarily due to the run-off of higher cost other time deposits.

Non-Interest Income

Total non-interest income was $9.5 million for the fourth quarter of 2015, compared to $9.5 million for the third quarter of 2015, and $9.9 million for the fourth quarter of 2014.

The Company recognized $2.9 million in net gain on sales of loans during the fourth quarter of 2015, compared to $3.2 million for the third quarter of 2015, and $3.5 million for the fourth quarter of 2014. Net gain on sale of loans in the fourth quarter of 2015 consisted of $2.0 million in gains on sales of SBA loans, $898,000 in net gains on sales of residential mortgage loans, and $62,000 in gains from the sale of non-performing loans. The decline in net gain on sale of loans for the fourth quarter of 2015, compared to the previous quarter, was primarily due to a decline in sale of residential mortgage loans, while the decline from the fourth quarter of 2014 was due to a reduction in SBA loan sales in addition to a decline in average premium rates.

Other non-interest income totaled $3.7 million for the fourth quarter of 2015, compared to $3.3 million for both the third quarter of 2015 and fourth quarter of 2014. The increase in other non-interest income from the third to fourth quarter of 2015 was primarily due to an increase in loan servicing and other miscellaneous loan related income.

Non-Interest Expense

Total non-interest expense was $26.6 million for the fourth quarter of 2015, compared with $25.8 million for the third quarter of 2015, and $23.5 million for the fourth quarter of 2014. The increase in non-interest expense from the prior quarter was primarily due to $994,000 in merger-related costs related to the planned merger of equals with BBCN, consisting mostly of financial advisor fees and legal expenses. Merger-related costs also contributed to an approximate 1.60% increase in tax rate for the fourth quarter of 2015, as these expenses were not tax deductible.

Total salaries and employee benefits expense was $13.7 million for the fourth quarter of 2015, compared to $13.6 million for the third quarter of 2015, and $12.4 million for the fourth quarter of 2014. The increase in salaries and employee benefits for the fourth quarter of 2015 compared to the fourth quarter of 2014 was due to an overall increase in total employees, primarily to support the expansion of the residential mortgage lending business.

The Company’s operating efficiency ratio was 54.3% for the fourth quarter of 2015, compared with 54.8% for the third quarter of 2015, and 49.5% for the fourth quarter of 2014.

BALANCE SHEET

During the fourth quarter of 2015, the Company was able to reduce its cash and cash equivalents balance from $488.3 million at September 30, 2015, to $118.2 million at December 31, 2015. Excess cash was deployed in the fourth quarter of 2015 through the purchase of investment securities and funding loan growth. Higher cost time deposits and brokered money market accounts were also run-off during the fourth quarter of 2015, which helped to reduce cash equivalents to levels at year end.

Total loans receivable (net of deferred fees and costs) were $3.82 billion at December 31, 2015, compared to $3.63 billion at September 30, 2015. The increase in loans during the fourth quarter of 2015 was primarily attributable to growth in the real estate secured portfolio.

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, 2015 September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014
Construction$ 19,541 $ 18,146 $ 16,050 $ 26,117 $ 21,248
Real Estate Secured 2,992,824 2,810,420 2,723,458 2,701,800 2,655,251
Commercial & Industrial 792,243 789,422 765,655 769,438 610,762
Consumer 15,096 13,284 14,622 15,465 21,036
Total Loans Receivable * 3,819,704 3,631,272 3,519,785 3,512,820 3,308,297
Loans Held-For-Sale 25,223 13,316 25,269 10,204 11,783
Total Loans *$3,844,927 $ 3,644,588 $ 3,545,054 $ 3,523,024 $ 3,320,080

* 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) December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014
Real Estate Secured$273,613 54% $176,605 43% $121,066 41% $138,145 35% $184,477 56%
Commercial & Industrial 94,128 19% 107,952 26% 46,438 16% 59,837 15% 73,194 22%
Consumer 55 0% 360 0% 124 0% 1,640 0% 3,385 1%
SBA 37,897 8% 21,871 5% 25,648 9% 31,718 8% 34,747 11%
Residential Mortgage 95,159 19% 102,383 25% 89,652 31% 11,357 3% 8,632 4%
Warehouse Lines of Credit* 2,000 0% 7,000 1% 10,000 3% 155,000 39% 23,000 6%
Total Loan Originations$502,852 100% $416,171 100% $292,928 100% $397,697 100% $327,435 100%

* Warehouse lines of credit are reported as commercial and industrial loans on the consolidated balance sheet.

Originations for the fourth quarter of 2015 totaled $502.9 million, compared to $416.2 million for the third quarter of 2015, and $327.4 million for the fourth quarter of 2014. The increase in loan origination for the three months ended December 31, 2015, compared to the previous quarter, was due to an increase in real estate secured and SBA loan originations.

Total SBA loans held-for-sale at the end of the fourth quarter of 2015 were $5.5 million, compared to $2.2 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. Residential mortgage loans held-for-sale at the end of the fourth quarter of 2015 were $19.7 million, compared to $9.6 million at the end of the third quarter of 2015.

Total deposits were $3.84 billion at December 31, 2015, compared with $3.94 billion at September 30, 2015. The decrease in total deposits was attributable to the strategic run-off of higher cost time deposits and a reduction in brokered money market deposits.

CREDIT QUALITY

During the fourth quarter of 2015, the Company experienced general improvement in asset quality, continued low levels of charge-offs, and significant loan recoveries. As a result, the Company determined that no provision for losses on loans and loan commitments was required for the fourth quarter of 2015 in spite of the loan growth experienced during the quarter.

The allowance for loan losses totaled $52.4 million, or 1.37% of gross loans (excluding loans held-for-sale), at December 31, 2015, compared to $50.1 million, or 1.38% of gross loans (excluding loans held-for-sale), at September 30, 2015. The coverage ratio of the allowance for loan losses to non-performing assets was 169.74% at December 31, 2015, compared with 130.23% at September 30, 2015.

Non-Performing Loans

At December 31, 2015, total non-performing loans were $21.7 million, or 0.56% of total gross loans, compared to $27.2 million, or 0.74% of total gross loans, at September 30, 2015.

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

NON-PERFORMING LOANSQuarter Ended
(Dollars In Thousands) (Unaudited) Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014
(Net of SBA Guaranty Portions)
Real Estate Secured$ 15,422 $ 20,123 $ 23,235 $ 25,329 $ 29,547
Commercial & Industrial 6,272 7,058 7,617 7,193 7,718
Total Non-Performing Loans$ 21,694 $ 27,181 $ 30,852 $ 32,522 $ 37,265

Net Charge-offs/Recoveries

During the fourth quarter of 2015, the Company had total gross charge-offs of $1.4 million, and recoveries of $3.7 million, which resulted in net recoveries of $2.3 million, compared to net recoveries of $795,000 for the third quarter of 2015.

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

GROSS LOAN CHARGE-OFFSQuarter Ended
(Dollars In Thousands) (Unaudited) Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014
Real Estate Secured$ 13 $ 605 $ 249 $ 325 $ 5,461
Commercial & Industrial 1,392 1,270 310 999 852
Total Loan Charge-Offs$ 1,405 $ 1,875 $ 559 $ 1,324 $ 6,313


LOAN RECOVERIESQuarter Ended
(Dollars In Thousands) (Unaudited) Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014
Real Estate Secured$ 3,242 $ 1,867 $ 970 $ 193 $ 199
Commercial & Industrial 452 803 240 667 1,620
Consumer - - - 10 2
Total Loan Recoveries$ 3,694 $ 2,670 $ 1,210 $ 870 $ 1,821

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, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014
(Net of SBA Guaranty Portions)
30 - 59 Days Past Due$ 4,315 $ 4,911 $ 3,615 $ 7,375 $ 5,165
60 - 89 Days Past Due 1,643 1,143 7,576 421 1,820
90 Days, and still accruing - - - - -
Total Delinquent Loans$ 5,958 $ 6,054 $ 11,191 $ 7,796 $ 6,985

TROUBLED DEBT RESTRUCTURED LOANS (“TDR”) Quarter Ended
(Dollars In Thousands) (Unaudited)Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014
(Net of SBA Guaranty Portions)
Real Estate Secured$ 22,311 $ 24,188 $ 29,424 $ 28,612 $ 25,096
Commercial & Industrial 15,681 16,578 13,469 11,682 12,014
Total TDR Loans$ 37,992 $ 40,766 $ 42,893 $ 40,294 $ 37,110


LOAN CLASSIFICATIONS Quarter Ended
(Dollars In Thousands) (Unaudited)Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014
(Net of SBA Guaranty Portions)
Special Mention$ 120,019 $ 118,290 $ 86,118 $ 81,049 $ 76,906
Substandard 80,310 82,000 96,666 89,402 82,305
Doubtful 41 2,182 5,301 9,822 11,952
Total Criticized and Classified Loans$ 200,370 $ 202,472 $ 188,085 $ 180,273 $ 171,163
Total Classified Loans$ 80,351 $ 84,182 $ 101,967 $ 99,224 $ 94,257

CAPITAL RATIOS

As of December 31, 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)December 31, 2015
Well Capitalized
Regulatory Requirements
Total Excess Above Well
Capitalized Requirements
Tier 1 Leverage Capital Ratio 11.30% 5.00% 292,980
Tier 1 Common Equity Risk-Based Capital Ratio 11.23% 6.50% 193,241
Tier 1 Risk-Based Capital Ratio 12.86% 8.00% 198,690
Total Risk-Based Capital Ratio 14.11% 10.00% 168,112
Tangible Common Equity To Tangible Assets * 9.96% N/A N/A
Tangible Common Equity Per Common Share *$ 5.88 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 26, 2016, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing toll-free 888-298-2143 (domestic) or 503-406-4050 (international) and providing passcode number 20355338.

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 markets encompassing the multi-ethnic populations of the Los Angeles, New York, New Jersey, and Texas. For more information, please go to www.wilshirebank.com.

ABOUT BBCN BANCORP, INC.

BBCN Bancorp, Inc. is the holding company of BBCN Bank, the largest Korean-American bank in the nation. Headquartered in Los Angeles and serving a diverse mix of customers mirroring its communities, BBCN operates 50 branches in California, New York, New Jersey, Illinois, Washington, and Virginia; eight loan production offices in Seattle, Denver, Dallas, Atlanta, Northern California, Annandale, Virginia, Portland, Oregon, and Fremont, California; and a representative office in Seoul, Korea. BBCN specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and business lending, SBA lending and international trade financing. BBCN Bank is a California-chartered bank and its deposits are insured by the FDIC to the extent provided by law. BBCN is an Equal Opportunity Lender.

ADDITIONAL INFORMATION ABOUT MERGER AND WHERE TO FIND IT

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

PARTICIPANTS IN SOLICITATION

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

FORWARD-LOOKING STATEMENTS

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

For a more complete list and description of such risks and uncertainties, refer to Wilshire Bancorp’s Form 10-K for the year ended December 31, 2014, and BBCN Bancorp’s Form 10-K for the year ended December 31, 2014, as amended, as well as other filings made by Wilshire Bancorp and BBCN Bancorp with the SEC. Except as required under the U.S. federal securities laws and the rules and regulations of the SEC, Wilshire Bancorp and BBCN Bancorp disclaim any intention or obligation to update any forward-looking statements after the distribution of this press release, whether as a result of new information, future events, developments, changes in assumptions or otherwise.

CONSOLIDATED BALANCE SHEET
(Dollars In Thousands) (Unaudited) December 31, September 30, Three Months December 31, Twelve Months
2015 2015 % Change 2014 % Change
ASSETS:
Cash and due from banks $ 118,089 $ 487,655 -76% $ 233,699 -49%
Federal funds sold and other cash equivalents 104 601 -83% 254 -59%
Total Cash and Cash Equivalents 118,193 488,256 -76% 233,953 -49%
Deposits held in other financial institutions - 7,500 -100% 8,000 -100%
Investment securities available for sale 535,524 386,679 38% 388,367 38%
Investment securities held to maturity 21 22 -5% 26 -19%
Total Investment Securities 535,545 386,701 38% 388,393 38%
Total Loans Held-For-Sale 25,223 13,316 89% 11,783 114%
Real estate construction 19,541 18,146 8% 21,248 -8%
Residential real estate 269,117 231,902 16% 183,665 47%
Commercial real estate 2,723,707 2,578,518 6% 2,471,586 10%
Commercial and industrial 792,243 789,422 0% 610,762 30%
Consumer 15,096 13,284 14% 21,036 -28%
Total loans receivable, net of deferred fees and costs 3,819,704 3,631,272 5% 3,308,297 15%
Allowance for loan losses (52,405) (50,116) 5% (48,624) 8%
Loans Receivable, Net of Allowance for Loan Losses 3,767,299 3,581,156 5% 3,259,673 16%
Accrued interest receivable 9,226 8,604 7% 8,792 5%
Due from customers on acceptances 7,250 8,940 -19% 5,611 29%
Other real estate owned 9,179 11,302 -19% 7,922 16%
Premises and equipment 16,096 14,328 12% 13,881 16%
Federal home loan bank (FHLB) stock, at cost 16,539 16,539 0% 16,539 0%
Cash surrender value of life insurance 25,028 24,879 1% 23,330 7%
Investment in affordable housing partnerships 48,867 45,435 8% 44,077 11%
Deferred income taxes 21,489 20,086 7% 22,271 -4%
Servicing assets 19,894 19,967 0% 18,031 10%
Goodwill 67,473 67,473 0% 67,473 0%
Other assets 26,167 25,919 1% 25,740 2%
TOTAL ASSETS $4,713,468 $4,740,401 -1% $ 4,155,469 13%
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Non-interest bearing demand deposits $1,088,436 $1,074,025 1% $ 915,413 19%
Savings and interest checking 172,038 161,267 7% 160,717 7%
Money market deposits 977,697 996,899 -2% 765,892 28%
Time deposits in denomination of $100,000 or more 1,349,440 1,440,340 -6% 1,291,844 4%
Other time deposits 252,265 269,909 -7% 267,393 -6%
Total Deposits 3,839,876 3,942,440 -3% 3,401,259 13%
FHLB borrowings 220,000 150,000 47% 150,000 47%
Acceptance outstanding 7,250 8,940 -19% 5,611 29%
Junior subordinated debentures 72,016 71,955 0% 71,779 0%
Accrued interest payable 2,105 2,326 -10% 2,228 -6%
Other liabilities 39,291 38,112 3% 35,181 12%
Total Liabilities 4,180,538 4,213,773 -1% 3,666,058 14%
Common stock 233,341 233,634 0% 232,001 1%
Retained earnings 296,303 287,072 3% 252,957 17%
Accumulated other comprehensive income 3,286 5,922 -45% 4,453 -26%
Total Shareholders’ Equity 532,930 526,628 1% 489,411 9%
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $4,713,468 $4,740,401 -1% $4,155,469 13%


CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
Quarter Ended Three Mths
Quarter Ended
Twelve Mths
December 31, 2015 September 30, 2015 % Change December 31, 2014 % Change
INTEREST INCOME
Interest and fees on loans $ 43,797 $ 41,877 5% $ 40,709 8%
Interest on investment securities 2,626 2,022 30% 2,053 28%
Interest on federal funds sold and others 228 303 -25% 155 47%
Total Interest Income 46,651 44,202 6% 42,917 9%
INTEREST EXPENSE
Deposits 5,945 6,039 -2% 4,783 24%
FHLB advances and other borrowings 1,287 704 83% 667 93%
Total Interest Expense 7,232 6,743 7% 5,450 33%
Net interest income before provision for losses on loans and loan commitments 39,419 37,459 5% 37,467 5%
Provision for losses on loans and loan commitments - 700 -100% - 0%
Net interest income after provision for losses on loans and loan commitments 39,419 36,759 7% 37,467 5%
NONINTEREST INCOME
Service charges on deposits 2,903 3,084 -6% 3,105 -7%
Net gain on sale of SBA loans 1,958 1,958 -0% 3,465 -43%
Net gain on sale of residential loans 898 1,204 -25% 63 1325%
Net gain on sale of other loans 62 - 0% - 0%
Other 3,725 3,281 14% 3,280 14%
Total Noninterest Income 9,546 9,527 0% 9,913 -4%
NONINTEREST EXPENSES
Salaries and employee benefits 13,676 13,639 0% 12,359 11%
Occupancy and equipment 3,390 3,341 1% 3,385 0%
Data processing 1,156 1,119 3% 1,030 12%
Merger-related costs 994 - 0% - 0%
Other 7,348 7,651 -4% 6,694 10%
Total Noninterest Expenses 26,564 25,750 3% 23,468 13%
Income before income taxes 22,401 20,536 9% 23,912 -6%
Income taxes provision 8,453 7,251 17% 7,809 8%
NET INCOME $ 13,948 $ 13,285 5% $ 16,103 -13%
PER COMMON SHARE INFORMATION:
Basic income per common share $ 0.18 $ 0.17 5% $ 0.21 -14%
Diluted income per common share $ 0.18 $ 0.17 5% $ 0.20 -14%
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic 78,601,082 78,556,455 78,315,686
Diluted 78,942,078 78,907,223 78,628,965

CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
Twelve Months Ended Twelve Mths
December 31, 2015 December 31, 2014 % Change
INTEREST INCOME
Interest and fees on loans $ 167,361 $ 155,020 8%
Interest on investment securities 8,545 8,195 4%
Interest on federal funds sold and others 987 489 102%
Total Interest Income 176,893 163,704 8%
INTEREST EXPENSE
Deposits 22,742 15,926 43%
FHLB advances and other borrowings 3,309 2,241 48%
Total Interest Expense 26,051 18,167 43%
Net interest income before provision for losses on loans and loan commitments 150,842 145,537 4%
Provision for losses on loans and loan commitments 700 - 0%
Net interest income after provision for losses on loans and loan commitments 150,142 145,537 3%
NONINTEREST INCOME
Service charges on deposits 12,253 12,693 -3%
Net gain on sale of SBA loans 8,792 14,366 -39%
Net gain on sale of residential loans 3,290 366 799%
Net gain on sale of other loans 4,988 230 2069%
Other 16,331 13,586 20%
Total Noninterest Income 45,654 41,241 11%
NONINTEREST EXPENSES
Salaries and employee benefits 54,144 49,724 9%
FDIC indemnification impairment - 597 -100%
Occupancy and equipment 13,300 13,371 -1%
Data processing 4,406 3,998 10%
Merger-related costs 994 3,577 -72%
Other 27,046 26,247 3%
Total Noninterest Expenses 99,890 97,514 2%
Income before income taxes 95,906 89,264 7%
Income taxes provision 34,501 30,255 14%
NET INCOME $ 61,405 $ 59,009 4%
PER COMMON SHARE INFORMATION:
Basic income per common share $ 0.78 $ 0.75 4%
Diluted income per common share $ 0.78 $ 0.75 4%
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic 78,486,883 78,250,901
Diluted 78,818,556 78,591,374

SUMMARY OF FINANCIAL DATA
(Dollars In Thousands, Except Per Share Data) (Unaudited)
Quarter Ended
AVERAGE BALANCES December 31, 2015 September 30, 2015 December 31, 2014
Average Assets $ 4,728,510 $ 4,592,052 $ 4,049,930
Average Equity 534,938 524,962 485,482
Average Net Loans 3,650,672 3,519,441 3,200,538
Average Deposits 3,922,849 3,893,958 3,292,557
Average Time Deposits of $100,000 or more 1,407,298 1,448,501 1,211,738
Average FHLB & Other Borrowings 151,848 59,783 150,000
Average Interest Earning Assets 4,445,026 4,308,140 3,764,271
Twelve Months Ended
AVERAGE BALANCES December 31, 2015 December 31, 2014
Average Assets $ 4,513,304 $ 3,762,400
Average Equity 518,447 466,398
Average Net Loans 3,501,800 3,017,409
Average Deposits 3,762,323 3,021,392
Average Time Deposits of $100,000 or more 1,393,357 970,481
Average FHLB & Other Borrowings 118,435 160,950
Average Interest Earning Assets 4,233,219 3,479,993
Quarter Ended
PROFITABILITY December 31, 2015 September 30, 2015 December 31, 2014
Annualized Return on Average Assets 1.18% 1.16% 1.59%
Annualized Return on Average Equity 10.43% 10.12% 13.27%
Efficiency Ratio 54.25% 54.80% 49.53%
Annualized Operating Expense/Average Assets 2.25% 2.24% 2.32%
Annualized Net Interest Margin 3.56% 3.49% 4.00%
Twelve Months Ended
PROFITABILITY December 31, 2015 December 31, 2014
Annualized Return on Average Assets 1.36% 1.57%
Annualized Return on Average Equity 11.84% 12.65%
Efficiency Ratio 50.84% 52.21%
Annualized Operating Expense/Average Assets 2.21% 2.59%
Annualized Net Interest Margin 3.58% 4.20%
As Of
DEPOSIT COMPOSITION December 31, 2015 Cost of
Funds
September 30, 2015 Cost of
Funds
December 31, 2014 Cost of
Funds
Noninterest Bearing Demand Deposits 28.3% 0.00% 27.2% 0.00% 26.9% 0.00%
Savings & Interest Checking 4.5% 1.26% 4.1% 1.29% 4.7% 1.33%
Money Market Deposits 25.5% 0.69% 25.3% 0.68% 22.5% 0.71%
Time Deposits of $100,000 or More 35.1% 0.89% 36.5% 0.89% 38.0% 0.79%
Other Time Deposits 6.6% 0.91% 6.9% 0.92% 7.9% 0.84%
Total Deposits 100.0% 0.61% 100.0% 0.62% 100.0% 0.58%
As Of
CAPITAL RATIOS December 31, 2015 September 30, 2015 December 31, 2014
Tier 1 Leverage Ratio 11.30% 11.54% 12.11%
Tier 1 Common Equity Risk-Based Capital Ratio 11.23% 11.47% N/A
Tier 1 Risk-Based Capital Ratio 12.86% 13.23% 14.13%
Total Risk-Based Capital Ratio 14.11% 14.48% 15.38%
Total Shareholders' Equity $ 532,930 $ 526,628 $ 489,411
Book Value Per Common Share $ 6.78 $ 6.70 $ 6.25
Tangible Common Equity Per Common Share * $ 5.88 $ 5.80 $ 5.33
Tangible Common Equity to Tangible Assets * 9.96% 9.76% 10.23%

* Excludes goodwill and other intangible assets

ALLOWANCE FOR LOAN LOSSES
(Dollars In Thousands) (Unaudited)
Quarter Ended
December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014
Balance at beginning of period $ 50,116 $ 48,821 $ 48,170 $ 48,624 $ 53,116
Provision for losses on loans - 500 - - -
Recoveries on loans previously charged-off 3,694 2,670 1,210 870 1,821
Gross loan charge-offs (1,405) (1,875) (559) (1,324) (6,313)
Balance at end of period $ 52,405 $ 50,116 $ 48,821 $ 48,170 $ 48,624
Net Loan Charge-offs / Average Net Loans -0.06% -0.02% -0.02% 0.01% 0.14%
Charge-offs / Average Total Loans 0.04% 0.05% 0.02% 0.04% 0.20%
Allowance for Loan Losses / Gross Loans* 1.37% 1.38% 1.38% 1.37% 1.47%
Allowance for Loan Losses / Non-accrual Loans 241.56% 184.38% 158.24% 148.12% 130.48%
Allowance for Loan Losses / Non-performing Loans 241.56% 184.38% 158.24% 148.12% 130.48%
Allowance for Loan Losses / Non-performing Assets 169.74% 130.23% 130.50% 120.63% 107.61%
Allowance for Loan Losses / Classified Loans 65.22% 59.53% 47.88% 48.55% 51.59%
* Excludes held-for-sale loans
NON-PERFORMING ASSETS
(Dollars In Thousands, Net of SBA Guaranty) Quarter Ended
(Unaudited) December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014
Non-accrual loans $ 21,694 $ 27,181 $ 30,852 $ 32,522 $ 37,265
Loans 90 days or more past due and still accruing - - - - -
Total Non-performing Loans 21,694 27,181 30,852 32,522 37,265
Total OREO 9,179 11,302 6,559 7,411 7,922
Total Non-performing Assets $ 30,873 $ 38,483 $ 37,411 $ 39,933 $ 45,187
Total Non-performing Loans/Gross Loans 0.56% 0.74% 0.87% 0.92% 1.12%
Total Non-performing Assets/Total Assets 0.65% 0.81% 0.81% 0.90% 1.09%


ALLOWANCE FOR OFF-BALANCE SHEET ITEMS
(Dollars In Thousands) (Unaudited) Quarter Ended
December 31, 2015 September 30, 2015 December 31, 2014
Balance at beginning of period $ 1,261 $ 1,061 $ 1,061
Provision for losses on loan commitments - 200 -
Balance at end of period $ 1,261 $ 1,261 $ 1,061


Twelve Months Ended
December 31, 2015 December 31, 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
December 31, 2015 September 30, 2015
December 31, 2014
Average
Interest Average Average
Interest Average Average
Interest Average
INTEREST EARNING ASSETSBalance
Income/ Yield/ Balance
Income/ Yield/ Balance
Income/ Yield/
Expense Rate Expense Rate Expense Rate
LOANS:
Real Estate Loans$2,904,530 $34,851 4.80% $2,802,173 $33,750 4.82% $ 2,666,855 $ 33,339 5.00%
Commercial Loans 743,686 7,662 4.12% 714,169 7,116 3.99% 530,293 5,717 4.31%
Consumer Loans 12,650 96 3.04% 13,053 108 3.31% 13,162 129 3.92%
Total Gross Loans 3,660,866 42,609 4.66% 3,529,395 40,974 4.64% 3,210,310 39,185 4.88%
Deferred Fees and Costs \ Loan Fees (10,194) 1,188 (9,954) 903 (9,772) 1,524
Total Loans * 3,650,672 43,797 4.80% 3,519,441 41,877 4.76% 3,200,538 40,709 5.09%
INVESTMENT SECURITIES AND
OTHER INTEREST-EARNING ASSETS:
Investment Securities** 496,571 2,626 2.24% 355,828 2,022 2.45% 366,229 2,053 2.43%
Deposits Held In Other Institutions 4,223 22 2.08% 7,576 31 1.64% 8,402 34 1.62%
Federal Funds Sold & Others 293,560 206 0.28% 425,295 272 0.26% 189,102 121 0.26%
Total Investment Securities and
Other Earning Assets 794,354 2,854 1.51% 788,699 2,325 1.26% 563,733 2,208 1.69%
TOTAL INTEREST-EARNING ASSETS$4,445,026 $46,651 4.21% $4,308,140 $44,202 4.12% $ 3,764,271 $ 42,917 4.58%
Total Non-Interest Earning Assets 283,484 283,912 285,659
TOTAL ASSETS$4,728,510 $4,592,052 $ 4,049,930
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money Market$ 982,301 $ 1,684 0.69% $ 978,220 $ 1,657 0.68% $ 748,031 $ 1,320 0.71%
NOW 34,586 23 0.27% 30,916 22 0.29% 31,364 17 0.22%
Savings 132,186 504 1.53% 128,597 493 1.53% 127,610 510 1.60%
Time Deposits of $100,000 or More 1,407,298 3,132 0.89% 1,448,501 3,235 0.89% 1,211,738 2,387 0.79%
Other Time Deposits 263,322 602 0.91% 273,433 632 0.93% 262,777 549 0.84%
Total Interest Bearing Deposits 2,819,693 5,945 0.84% 2,859,667 6,039 0.85% 2,381,520 4,783 0.80%
BORROWINGS:
FHLB Advances and Other Borrowings 151,848 828 2.18% 59,783 257 1.72% 150,000 235 0.63%
Junior Subordinated Debentures 71,976 459 2.55% 71,916 447 2.49% 71,742 432 2.41%
Total Borrowings 223,824 1,287 2.30% 131,699 704 2.14% 221,742 667 1.20%
TOTAL INTEREST BEARING LIABILITIES $3,043,517 $ 7,232 0.95% $2,991,366 $ 6,743 0.90% $ 2,603,262 $ 5,450 0.84%
Non-Interest Bearing Deposits 1,103,156 1,034,291 911,037
Other Liabilities 46,899 41,433 50,149
Shareholders’ Equity 534,938 524,962 485,482
TOTAL LIABILITIES AND EQUITY$4,728,510 $4,592,052 $ 4,049,930
NET INTEREST INCOME $39,419 $37,459 $ 37,467
NET INTEREST SPREAD 3.26% 3.22% 3.74%
NET INTEREST MARGIN 3.56% 3.49% 4.00%

* 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 Twelve Months Ended
December 31, 2015 December 31, 2014
Average
Interest Average Average
Interest Average
INTEREST EARNING ASSETSBalance
Income/ Yield/ Balance
Income/ Yield/
Expense Rate Expense Rate
LOANS:
Real Estate Loans$2,798,746 $ 134,576 4.81% $ 2,549,100 $ 128,969 5.06%
Commercial Loans 699,713 28,007 4.00% 464,911 21,136 4.55%
Consumer Loans 13,384 443 3.31% 12,308 490 3.98%
Total Gross Loans 3,511,843 163,026 4.64% 3,026,319 150,595 4.98%
Deferred Fees and Costs \ Loan Fees (10,043) 4,335 (8,910) 4,425
Total Loans * 3,501,800 167,361 4.78% 3,017,409 155,020 5.14%
INVESTMENT SECURITIES AND
OTHER INTEREST-EARNING ASSETS:
Investment Securities** 388,183 8,545 2.37% 350,661 8,195 2.54%
Deposits Held In Other Institutions 6,938 118 1.70% 17,105 238 1.39%
Federal Funds Sold & Others 336,298 869 0.26% 94,818 251 0.27%
Total Investment Securities and
Other Earning Assets 731,419 9,532 1.39% 462,584 8,684 2.03%
TOTAL INTEREST-EARNING ASSETS$4,233,219 $ 176,893 4.19% $ 3,479,993 $ 163,704 4.72%
Total Non-Interest Earning Assets 280,085 282,407
TOTAL ASSETS$4,513,304 $ 3,762,400
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money Market$ 924,673 $ 6,211 0.67% $ 770,316 $ 5,219 0.68%
NOW 30,874 82 0.27% 32,240 63 0.20%
Savings 129,961 1,993 1.53% 121,878 1,926 1.58%
Time Deposits of $100,000 or More 1,393,357 12,031 0.86% 970,481 6,849 0.71%
Other Time Deposits 269,842 2,425 0.90% 244,144 1,869 0.77%
Total Interest Bearing Deposits 2,748,707 22,742 0.83% 2,139,059 15,926 0.75%
BORROWINGS:
FHLB Advances and Other Borrowings 118,435 1,537 1.30% 160,950 522 0.32%
Junior Subordinated Debentures 71,888 1,772 2.47% 71,659 1,719 2.40%
Total Borrowings 190,323 3,309 1.74% 232,609 2,241 0.96%
TOTAL INTEREST BEARING LIABILITIES $2,939,030 $ 26,051 0.89% $ 2,371,668 $ 18,167 0.77%
Non-Interest Bearing Deposits 1,013,616 882,333
Other Liabilities 42,211 42,001
Shareholders’ Equity 518,447 466,398
TOTAL LIABILITIES AND EQUITY$4,513,304 $ 3,762,400
NET INTEREST INCOME $ 150,842 $ 145,537
NET INTEREST SPREAD 3.31% 3.96%
NET INTEREST MARGIN 3.58% 4.20%

* 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, 2015 September 30, 2015 December 31, 2014
Total shareholders’ equity$ 532,930 $ 526,628 $ 489,411
Goodwill and other intangible assets, net (70,658) (70,894) (71,628)
Tangible common equity$ 462,272 $ 455,734 $ 417,783
Total assets$ 4,713,468 $ 4,740,401 $ 4,155,469
Goodwill and other intangible assets, net (70,658) (70,894) (71,628)
Tangible assets$ 4,642,810 $ 4,669,507 $ 4,083,841
Common shares outstanding 78,608,717 78,598,147 78,322,462
NET INCOME AND EARNINGS PER SHARE BEFORE MERGER-RELATED COSTS
(Dollars In Thousands, Except Share and Per Share Data) (Unaudited)
Quarter Ended
December 31, 2015 September 30, 2015 December 31, 2014
Net income$ 13,948 $ 13,285 $ 16,103
Add Back – merger-related costs 994 - -
Net change in tax provision expenses - - -
Net income before merger-related costs$ 14,942 $ 13,285 $ 16,103
PER COMMON SHARE INFORMATION:
Basic income per common share$ 0.19 $ 0.17 $ 0.21
Diluted income per common share$ 0.19 $ 0.17 $ 0.20
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic 78,601,082 78,556,455 78,315,686
Diluted 78,942,078 78,907,223 78,628,965

* Tangible Common Equity, Tangible Assets, and Income Before Merger-Related Costs 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.com

Source:Wilshire Bancorp, Inc.