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Wilshire Bancorp Reports Net Income of $13.2 Million or $0.17 per Share for First Quarter 2016

LOS ANGELES, April 18, 2016 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (NASDAQ:WIBC) (the “Company”), the holding company for Wilshire Bank (the “Bank”), today reported net income of $13.2 million, or $0.17 per diluted common share, for the quarter ended March 31, 2016. This compares to net income of $18.6 million, or $0.24 per diluted common share, for the same period of the prior year, and net income of $13.9 million, or $0.18 per diluted common share, for the fourth quarter of 2015.

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, “Following a very strong quarter of loan production to end 2015, we saw a lower level of loan demand across all of our business lines to start 2016. We believe this was primarily attributable to the first quarter typically being a seasonally slower period for loan production, as well as the impact of macroeconomic uncertainty that caused borrowers to be more cautious during the first two months of the year. However, market conditions appear to be improving, and we expect to see an increase in loan production as we move into the seasonally stronger periods of the year.

“The pending merger of equals with BBCN Bancorp is proceeding as anticipated and we are looking forward to the opportunities to provide our customers with a superior banking experience as part of the only Super Regional Korean-American bank in the United States,” said Mr. Yoo.

Q1 2016 Summary

  • Net income totaled $13.2 million, or $0.17 per diluted common share, for the first quarter of 2016
  • Return on average assets of 1.12% and return on average equity of 9.69% for the first quarter of 2016
  • Net interest margin of 3.54% for the first quarter of 2016, compared to 3.56% for the fourth quarter of 2015
  • Loan originations of $276.1 million during the first quarter of 2016, compared to $502.9 million for the fourth quarter of 2015
  • Loans receivable (net of deferred fees and costs) totaled $3.79 billion at March 31, 2016, a decrease of 1% from $3.82 billion at December 31, 2015
  • Total deposits were $3.85 billion at March 31, 2016, largely unchanged from $3.84 billion at December 31, 2015
  • Demand deposits totaled $1.11 billion at March 31, 2016, an increase of 2% from $1.09 billion at December 31, 2015

STATEMENT OF OPERATIONS

Net interest income before provision for losses on loans and loan commitments totaled $38.9 million for the first quarter of 2016, a decrease of 1.3% from $39.4 million for the fourth quarter of 2015 and an increase of 6.6% from $36.5 million for the first quarter of 2015. Relative to the fourth quarter of 2015, net interest income was negatively impacted by a decrease in net interest margin.

Net interest margin was 3.54% for the first quarter of 2016, compared to 3.56% for the fourth quarter of 2015, and 3.69% for the first quarter of 2015. The decrease in net interest margin compared to the fourth quarter of 2015 was primarily attributable to a decline in the average yield on loans. Net interest margin compression from the decline in loan yield was partially offset by the increase in net interest margin that resulted from a decrease in lower yielding fed funds sold and others.

Loan yields were 4.61% for the first quarter of 2016, compared to 4.80% for the fourth quarter of 2015, and 4.78% for the first quarter of 2015. The decline in loan yields for the first quarter of 2016, compared to the fourth quarter of 2015, was primarily due to the decline in yield on commercial real estate loans as loans were originated and renewed at rates lower than the existing portfolio.

The total cost of deposits was 0.62% for the first quarter of 2016, compared to 0.61% for the fourth quarter of 2015, and 0.58% for the first quarter of 2015. Compared to the fourth quarter of 2015, the increase in the total cost of deposits was primarily due to a slight increase in interest rates in money market and time deposits.

Non-Interest Income

Total non-interest income was $8.5 million for the first quarter of 2016, compared to $9.5 million for the fourth quarter of 2015, and $15.3 million for the first quarter of 2015.

The Company recognized $2.7 million in gain on sales of loans during the first quarter of 2016, compared to $2.9 million for the fourth quarter of 2015, and $6.8 million for the first quarter of 2015. Gain on sale of loans in the first quarter of 2016 consisted of $1.3 million in gains on sales of SBA loans, $830,000 in gains on sales of residential mortgage loans, and $545,000 in gains from the sale of other loans. The decline in gain on sale of loans for the first quarter of 2016, compared to the previous quarter, was primarily due to a decline in sale of SBA loans, while the decline from the first quarter of 2015 was primarily due to a decline in the gain on sale of non-performing loans and a reduction in SBA loan sales.

Other non-interest income totaled $2.9 million for the first quarter of 2016, compared to $3.7 million for the fourth quarter of 2015 and $5.4 million for the first quarter of 2015. The decrease in other non-interest income compared to the fourth quarter of 2015 was due to a decline in recoveries on acquired assets in addition to a decline in loan servicing income. During the fourth quarter of 2015, the Company had a large increase in recoveries on assets acquired from BankAsiana and Saehan. The decrease in other non-interest income compared to the first quarter of 2015 was due to the decline in income recorded from the change in the fair value of the Company’s servicing asset and to a lesser extent a decline in income recorded from the fair value change of mortgage derivatives.

Non-Interest Expense

Total non-interest expense was $26.7 million for the first quarter of 2016, compared with $26.6 million for the fourth quarter of 2015, and $22.9 million for the first quarter of 2015. Non-interest expense in the first quarter of 2016 included $458,000 in merger-related costs consisting of mostly legal expenses related to the planned merger of equals with BBCN.

Total salaries and employee benefits expense was $14.8 million for the first quarter of 2016, compared to $13.7 million for the fourth quarter of 2015, and $12.7 million for the first quarter of 2015. The increase in salaries and employee benefits for the first quarter of 2016 compared to the fourth quarter of 2015 was primarily due to an increase in stock-based compensation expense, incentive compensation, and commissions.

The Company’s operating efficiency ratio was 56.3% for the first quarter of 2016, compared with 54.3% for the fourth quarter of 2015, and 44.3% for the first quarter of 2015.

BALANCE SHEET

Total loans receivable (net of deferred fees and costs) were $3.79 billion at March 31, 2016, compared to $3.82 billion at December 31, 2015. During the first quarter of 2016, a decrease in commercial real estate and commercial and industrial loans was partially offset by an increase in construction loans. Total loans held-for-sale increased to $90.4 million at March 31, 2016, from $25.2 million at December 31, 2015, due to an increase in both residential mortgage and SBA loans held-for-sale.

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

Quarter Ended
(Dollars In Thousands) (Unaudited) March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
Construction $36,181 $19,541 $18,146 $16,050 $26,117
Real Estate Secured 2,962,964 2,992,824 2,810,420 2,723,458 2,701,800
Commercial & Industrial 783,487 792,243 789,422 765,655 769,438
Consumer 12,304 15,096 13,284 14,622 15,465
Total Loans Receivable * 3,794,936 3,819,704 3,631,272 3,519,785 3,512,820
Loans Held-For-Sale 90,392 25,223 13,316 25,269 10,204
Total Loans * $3,885,328 $3,844,927 $3,644,588 $3,545,054 $3,523,024
* 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) March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
Real Estate Secured $127,145 46% $273,613 54% $176,605 43% $121,066 41% $138,145 35%
Commercial & Industrial 34,268 12% 94,128 19% 107,952 26% 46,438 16% 59,837 15%
Consumer 0% 55 0% 360 0% 124 0% 1,640 0%
SBA 26,801 10% 37,897 8% 21,871 5% 25,648 9% 31,718 8%
Residential Mortgage 87,866 32% 95,159 19% 102,383 25% 89,652 31% 11,357 3%
Warehouse Lines of Credit* 0% 2,000 0% 7,000 1% 10,000 3% 155,000 39%
Total Loan Originations $276,080 100% $502,852 100% $416,171 100% $292,928 100% $397,697 100%
* Warehouse lines of credit are reported as commercial and industrial loans on the consolidated balance sheet.

Originations for the first quarter of 2016 totaled $276.1 million, compared to $502.9 million for the fourth quarter of 2015, and $397.7 million for the first quarter of 2015. The decrease in loan originations for the three months ended March 31, 2016, compared to the previous quarter, was due to weaker loan demand experienced during the first quarter of 2016 due to seasonality and other market factors.

Total SBA loans held-for-sale at the end of the first quarter of 2016 were $11.6 million, compared to $5.5 million at the end of the previous quarter. Residential mortgage loans held-for-sale at the end of the first quarter of 2016 were $78.0 million, compared to $19.7 million at the end of the previous quarter.

Total deposits were $3.85 billion at March 31, 2016, compared with $3.84 billion at December 31, 2015, with increases in lower-cost deposit categories offsetting declines in time deposits.

CREDIT QUALITY

During the first quarter of 2016 the Company set aside $300,000 in provision for losses on loans and loan commitments.

The allowance for loan losses totaled $52.7 million, or 1.38% of gross loans (excluding loans held-for-sale), at March 31, 2016, compared to $52.4 million, or 1.37% of gross loans (excluding loans held-for-sale), at December 31, 2015. The coverage ratio of the allowance for loan losses to non-performing assets was 149.08% at March 31, 2016, compared with 169.74% at December 31, 2015.

Special mention loans, or criticized loans totaled $161.1 million at March 31, 2016, compared to $120.0 million at December 31, 2015. The increase in criticized loans at March 31, 2016 compared to December 31, 2015 was primarily due to one borrower with two commercial loans totaling $26.0 million. The commercial loans were transferred to the criticized category in the first quarter of 2016 due to temporary deterioration in the borrower’s financial performance, but the Company does not expect any losses to be incurred on these commercial loans at this time. Total classified loans at March 31, 2016 was $85.2 million, compared to $80.4 million at December 31, 2015.

Non-Performing Loans

At March 31, 2016, total non-performing loans were $25.2 million, or 0.65% of total gross loans, compared to $21.7 million, or 0.56% of total gross loans, at December 31, 2015.

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

NON-PERFORMING LOANS Quarter Ended
(Dollars In Thousands) (Unaudited) Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
(Net of SBA Guaranty Portions)
Real Estate Secured $20,007 $15,422 $20,123 $23,235 $25,329
Commercial & Industrial 5,194 6,272 7,058 7,617 7,193
Total Non-Performing Loans $25,201 $21,694 $27,181 $30,852 $32,522

Net Charge-offs/Recoveries

During the first quarter of 2016, the Company had total gross charge-offs of $598,000, and recoveries of $361,000, which resulted in net charge-offs of $237,000, compared to net recoveries of $2.3 million for the fourth 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) Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Real Estate Secured $219 $13 $605 $249 $325
Commercial & Industrial 379 1,392 1,270 310 999
Total Loan Charge-Offs $598 $1,405 $1,875 $559 $1,324


LOAN RECOVERIES Quarter Ended
(Dollars In Thousands) (Unaudited) Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Real Estate Secured $46 $3,242 $1,867 $970 $193
Commercial & Industrial 315 452 803 240 667
Consumer 10
Total Loan Recoveries $361 $3,694 $2,670 $1,210 $870

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

DELINQUENT LOANS - By Days Past Due Quarter Ended
(Dollars In Thousands) (Unaudited) Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
(Net of SBA Guaranty Portions)
30 - 59 Days Past Due $3,608 $4,315 $4,911 $3,615 $7,375
60 - 89 Days Past Due 1,491 1,643 1,143 7,576 421
90 Days, and still accruing
Total Delinquent Loans $5,099 $5,958 $6,054 $11,191 $7,796

TROUBLED DEBT RESTRUCTURED LOANS (“TDR”) Quarter Ended
(Dollars In Thousands) (Unaudited) Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
(Net of SBA Guaranty Portions)
Real Estate Secured $23,376 $22,311 $24,188 $29,424 $28,612
Commercial & Industrial 15,015 15,681 16,578 13,469 11,682
Total TDR Loans $38,391 $37,992 $40,766 $42,893 $40,294


LOAN CLASSIFICATIONS Quarter Ended
(Dollars In Thousands) (Unaudited) Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
(Net of SBA Guaranty Portions)
Special Mention $161,119 $120,019 $118,290 $86,118 $81,049
Substandard 85,193 80,310 82,000 96,666 89,402
Doubtful 41 41 2,182 5,301 9,822
Total Criticized and Classified Loans $246,353 $200,370 $202,472 $188,085 $180,273
Total Classified Loans $85,234 $80,351 $84,182 $101,967 $99,224

CAPITAL RATIOS

As of March 31, 2016, all of the Company’s capital ratios remain in excess of “well capitalized” regulatory requirements as shown in the following table:

(Dollars In Thousands, Except Per Share Info) March 31, 2016 Well Capitalized
Regulatory Requirements
Total Excess Above Well
Capitalized Requirements
Tier 1 Leverage Capital Ratio 11.67% 5.00% 308,094
Tier 1 Common Equity Risk-Based Capital Ratio 11.47% 6.50% 203,480
Tier 1 Risk-Based Capital Ratio 13.17% 8.00% 211,646
Total Risk-Based Capital Ratio 14.42% 10.00% 180,972
Tangible Common Equity To Tangible Assets * 10.23% N/A N/A
Tangible Common Equity Per Common Share * $ 6.03 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 April 19, 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 83078775.

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 five loan production offices of which four are utilized primarily for the origination of loans under the Small Business Administration lending program located in 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 has filed with the SEC a preliminary Registration Statement on Form S-4 that includes a Joint Proxy Statement/Prospectus of Wilshire and BBCN, as well as other relevant documents concerning the proposed transaction. Shareholders are urged to read the preliminary Registration Statement and the Joint Proxy Statement/Prospectus regarding the merger and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they 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 BBCN and Wilshire in the solicitation of proxies in respect of the merger is included in the preliminary Registration Statement and Joint Proxy Statement/Prospectus 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, 2015, and BBCN Bancorp’s Form 10-K for the year ended December 31, 2015, 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) March 31, December 31, Three Months March 31, Twelve Months
2016
2015
% Change 2015
% Change
ASSETS:
Cash and due from banks $115,444 $118,089 -2% $353,438 -67%
Federal funds sold and other cash equivalents 133 104 28% 164 -19%
Total Cash and Cash Equivalents 115,577 118,193 -2% 353,602 -67%
Deposits held in other financial institutions 0% 8,000 -100%
Investment securities available for sale 512,257 535,524 -4% 329,343 56%
Investment securities held to maturity 19 21 -10% 25 -24%
Total Investment Securities 512,276 535,545 -4% 329,368 56%
Total Loans Held-For-Sale 90,392 25,223 258% 10,204 786%
Real estate construction 36,181 19,541 85% 26,117 39%
Residential real estate 226,960 269,117 -16% 171,117 33%
Commercial real estate 2,736,004 2,723,707 0% 2,530,683 8%
Commercial and industrial 783,487 792,243 -1% 769,438 2%
Consumer 12,304 15,096 -18% 15,465 -20%
Total loans receivable, net of deferred fees and costs 3,794,936 3,819,704 -1% 3,512,820 8%
Allowance for loan losses (52,668) (52,405) 1% (48,170) 9%
Loans Receivable, Net of Allowance for Loan Losses 3,742,268 3,767,299 -1% 3,464,650 8%
Accrued interest receivable 9,171 9,226 -1% 8,581 7%
Due from customers on acceptances 8,900 7,250 23% 6,472 38%
Other real estate owned 10,128 9,179 10% 7,411 37%
Premises and equipment 15,718 16,096 -2% 14,058 12%
Federal home loan bank (FHLB) stock, at cost 16,539 16,539 0% 16,539 0%
Cash surrender value of life insurance 25,174 25,028 1% 23,470 7%
Investment in affordable housing partnerships 47,257 48,867 -3% 43,134 10%
Deferred income taxes 17,897 21,489 -17% 16,646 8%
Servicing assets 19,324 19,894 -3% 19,813 -2%
Goodwill 67,473 67,473 0% 67,473 0%
Other assets 22,307 26,167 -15% 23,857 -6%
TOTAL ASSETS $4,720,401 $4,713,468 0% $4,413,278 7%
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Non-interest bearing demand deposits $1,106,805 $1,088,436 2% $997,803 11%
Savings and interest checking 173,557 172,038 1% 161,234 8%
Money market deposits 993,733 977,697 2% 886,092 12%
Time deposits in denomination of $100,000 or more 1,336,311 1,349,440 -1% 1,322,743 1%
Other time deposits 243,166 252,265 -4% 267,294 -9%
Total Deposits 3,853,572 3,839,876 0% 3,635,166 6%
FHLB borrowings 200,000 220,000 -9% 150,000 33%
Acceptance outstanding 8,900 7,250 23% 6,472 38%
Junior subordinated debentures 72,077 72,016 0% 71,837 0%
Accrued interest payable 2,400 2,105 14% 2,406 0%
Other liabilities 37,204 39,291 -5% 41,818 -11%
Total Liabilities 4,174,153 4,180,538 0% 3,907,699 7%
Common stock 234,386 233,341 0% 232,207 1%
Retained earnings 304,763 296,303 3% 267,660 14%
Accumulated other comprehensive income 7,099 3,286 116% 5,712 24%
Total Shareholders’ Equity 546,248 532,930 2% 505,579 8%
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $4,720,401 $4,713,468 0% $4,413,278 7%


CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
Quarter Ended Three Mths Quarter Ended Twelve Mths
March 31, 2016 December 31, 2015 % Change March 31, 2015 % Change
INTEREST INCOME
Interest and fees on loans $43,665 $43,797 0% $40,088 9%
Interest on investment securities 2,460 2,626 -6% 1,968 25%
Interest on federal funds sold and others 124 228 -46% 192 -35%
Total Interest Income 46,249 46,651 -1% 42,248 9%
INTEREST EXPENSE
Deposits 5,932 5,945 0% 5,097 16%
FHLB advances and other borrowings 1,408 1,287 9% 660 113%
Total Interest Expense 7,340 7,232 1% 5,757 27%
Net interest income before provision for losses on loans and loan commitments 38,909 39,419 -1% 36,491 7%
Provision for losses on loans and loan commitments 300 0% 0%
Net interest income after provision for losses on loans and loan commitments 38,609 39,419 -2% 36,491 6%
NONINTEREST INCOME
Service charges on deposits 2,851 2,903 -2% 3,107 -8%
Gain on sale of SBA loans 1,297 1,958 -34% 2,245 -42%
Gain on sale of residential loans 830 898 -8% 261 218%
Gain on sale of other loans 545 62 779% 4,300 -87%
Other 2,935 3,725 -21% 5,354 -45%
Total Noninterest Income 8,458 9,546 -11% 15,267 -45%
NONINTEREST EXPENSES
Salaries and employee benefits 14,783 13,676 8% 12,665 17%
Occupancy and equipment 3,276 3,390 -3% 3,373 -3%
Data processing 1,204 1,156 4% 1,042 16%
Merger-related costs 458 994 -54% 0%
Other 6,932 7,348 -6% 5,829 19%
Total Noninterest Expenses 26,653 26,564 0% 22,909 16%
Income before income taxes 20,414 22,401 -9% 28,849 -29%
Income taxes provision 7,224 8,453 -15% 10,230 -29%
NET INCOME $13,190 $13,948 -5% $18,619 -29%
PER COMMON SHARE INFORMATION:
Basic income per common share $0.17 $0.18 -6% $0.24 -29%
Diluted income per common share $0.17 $0.18 -5% $0.24 -29%
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic 78,674,604 78,601,082 78,326,505
Diluted 78,974,448 78,942,078 78,655,365


SUMMARY OF FINANCIAL DATA
(Dollars In Thousands, Except Per Share Data) (Unaudited)
Quarter Ended
AVERAGE BALANCES March 31, 2016 December 31, 2015 March 31, 2015
Average Assets $4,698,333 $4,728,510 $4,255,625
Average Equity 544,527 534,938 500,097
Average Net Loans 3,789,591 3,650,672 3,352,433
Average Deposits 3,833,838 3,922,849 3,490,282
Average Time Deposits of $100,000 or more 1,342,858 1,407,298 1,297,961
Average FHLB & Other Borrowings 201,209 151,848 150,655
Average Interest Earning Assets 4,417,456 4,445,026 3,976,435
Quarter Ended
PROFITABILITY March 31, 2016 December 31, 2015 March 31, 2015
Annualized Return on Average Assets 1.12% 1.18% 1.75%
Annualized Return on Average Equity 9.69% 10.43% 14.89%
Efficiency Ratio 56.27% 54.25% 44.26%
Annualized Operating Expense/Average Assets 2.27% 2.25% 2.15%
Annualized Net Interest Margin 3.54% 3.56% 3.69%
As Of
DEPOSIT COMPOSITION March 31, 2016 Cost of
Funds
December 31, 2015 Cost of
Funds
March 31, 2015 Cost of
Funds
Noninterest Bearing Demand Deposits 28.7% 0.00% 28.3% 0.00% 27.4% 0.00%
Savings & Interest Checking 4.5% 1.25% 4.5% 1.26% 4.4% 1.31%
Money Market Deposits 25.8% 0.71% 25.5% 0.69% 24.4% 0.67%
Time Deposits of $100,000 or More 34.7% 0.91% 35.1% 0.89% 36.4% 0.80%
Other Time Deposits 6.3% 0.92% 6.6% 0.91% 7.4% 0.86%
Total Deposits 100.0% 0.62% 100.0% 0.61% 100.0% 0.58%
As Of
CAPITAL RATIOS March 31, 2016 December 31, 2015 March 31, 2015
Tier 1 Leverage Ratio 11.67% 11.30% 11.86%
Tier 1 Common Equity Risk-Based Capital Ratio 11.47% 11.23% 11.58%
Tier 1 Risk-Based Capital Ratio 13.17% 12.86% 13.38%
Total Risk-Based Capital Ratio 14.42% 14.11% 14.64%
Total Shareholders' Equity $546,248 $532,930 $505,579
Book Value Per Common Share $6.93 $6.78 $6.45
Tangible Common Equity Per Common Share * $6.03 $5.88 $5.54
Tangible Common Equity to Tangible Assets * 10.23% 9.96% 10.00%
* Excludes goodwill and other intangible assets


ALLOWANCE FOR LOAN LOSSES
(Dollars In Thousands) (Unaudited)
Quarter Ended
March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
Balance at beginning of period $52,405 $50,116 $48,821 $48,170 $48,624
Provision for losses on loans 500 500
Recoveries on loans previously charged-off 361 3,694 2,670 1,210 870
Gross loan charge-offs (598) (1,405) (1,875) (559) (1,324)
Balance at end of period $52,668 $52,405 $50,116 $48,821 $48,170
Net Loan Charge-offs / Average Net Loans 0.01% -0.06% -0.02% -0.02% 0.01%
Charge-offs / Average Total Loans 0.02% 0.04% 0.05% 0.02% 0.04%
Allowance for Loan Losses / Gross Loans* 1.38% 1.37% 1.38% 1.38% 1.37%
Allowance for Loan Losses / Non-accrual Loans 208.99% 241.56% 184.38% 158.24% 148.12%
Allowance for Loan Losses / Non-performing Loans 208.99% 241.56% 184.38% 158.24% 148.12%
Allowance for Loan Losses / Non-performing Assets 149.08% 169.74% 130.23% 130.50% 120,63%
Allowance for Loan Losses / Classified Loans 61.79% 65.22% 59.53% 47.88% 48.55%
* Excludes held-for-sale loans
NON-PERFORMING ASSETS
(Dollars In Thousands, Net of SBA Guaranty) Quarter Ended
(Unaudited) March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
Non-accrual loans $25,201 $21,694 $27,181 $30,852 $32,522
Loans 90 days or more past due and still accruing
Total Non-performing Loans 25,201 21,694 27,181 30,852 32,522
Total OREO 10,128 9,179 11,302 6,559 7,411
Total Non-performing Assets $35,329 $30,873 $38,483 $37,411 $39,933
Total Non-performing Loans/Gross Loans 0.65% 0.56% 0.74% 0.87% 0.92%
Total Non-performing Assets/Total Assets 0.75% 0.65% 0.81% 0.81% 0.90%
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS
(Dollars In Thousands) (Unaudited)
Quarter Ended
March 31, 2016 December 31, 2015 March 31, 2015
Balance at beginning of period $1,261 $1,261 $1,061
Provision for losses on loan commitments (200)
Balance at end of period $1,061 $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
March 31, 2016 December 31, 2015
March 31, 2015
AverageInterest Average AverageInterest Average AverageInterest Average
INTEREST EARNING ASSETS BalanceIncome/ Yield/ BalanceIncome/ Yield/ BalanceIncome/ Yield/
Expense Rate Expense Rate Expense Rate
LOANS:
Real Estate Loans $3,050,251 $35,025 4.59% $2,904,530 $34,851 4.80% $2,732,436 $32,565 4.77%
Commercial Loans 737,336 7,486 4.06% 743,686 7,662 4.12% 616,848 6,282 4.07%
Consumer Loans 12,522 86 2.75% 12,650 96 3.04% 13,141 116 3.53%
Total Gross Loans 3,800,109 42,597 4.48% 3,660,866 42,609 4.66% 3,362,425 38,963 4.64%
Deferred Fees and Costs \ Loan Fees (10,518) 1,068 (10,194) 1,188 (9,992) 1,125
Total Loans * 3,789,591 43,665 4.61% 3,650,672 43,797 4.80% 3,352,433 40,088 4.78%
INVESTMENT SECURITIES AND
OTHER INTEREST-EARNING ASSETS:
Investment Securities** 529,552 2,460 1.97% 496,571 2,626 2.24% 359,302 1,968 2.38%
Deposits Held In Other Institutions 0.00% 4,223 22 2.08% 8,000 32 1.60%
Federal Funds Sold & Others 98,313 124 0.50% 293,560 206 0.28% 256,700 160 0.25%
Total Investment Securities and
Other Earning Assets 627,865 2,584 1.74% 794,354 2,854 1.51% 624,002 2,160 1.49%
TOTAL INTEREST-EARNING ASSETS $4,417,456 $46,249 4.20% $4,445,026 $46,651 4.21% $3,976,435 $42,248 4.27%
Total Non-Interest Earning Assets 280,877 283,484 279,190
TOTAL ASSETS $4,698,333 $4,728,510 $4,255,625
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money Market $1,008,081 $1,787 0.71% $982,301 $1,684 0.69% $844,576 $1,406 0.67%
NOW 37,936 25 0.26% 34,586 23 0.27% 29,230 17 0.23%
Savings 134,064 511 1.53% 132,186 504 1.53% 129,239 502 1.55%
Time Deposits of $100,000 or More 1,342,858 3,044 0.91% 1,407,298 3,132 0.89% 1,297,961 2,603 0.80%
Other Time Deposits 246,197 565 0.92% 263,322 602 0.91% 265,626 569 0.86%
Total Interest Bearing Deposits 2,769,136 5,932 0.86% 2,819,693 5,945 0.84% 2,566,632 5,097 0.79%
BORROWINGS:
FHLB Advances and Other Borrowings 201,209 905 1.80% 151,848 828 2.18% 150,655 232 0.62%
Junior Subordinated Debentures 72,037 503 2.79% 71,976 459 2.55% 71,799 428 2.38%
Total Borrowings 273,246 1,408 2.06% 223,824 1,287 2.30% 222,454 660 1.19%
TOTAL INTEREST BEARING LIABILITIES $3,042,382 $7,340 0.97% $3,043,517 $7,232 0.95% $2,789,086 $5,757 0.83%
Non-Interest Bearing Deposits 1,064,702 1,103,156 923,650
Other Liabilities 46,722 46,899 42,792
Shareholders’ Equity 544,527 534,938 500,097
TOTAL LIABILITIES AND EQUITY $4,698,333 $4,728,510 $4,255,625
NET INTEREST INCOME $38,909 $39,419 $36,491
.
NET INTEREST SPREAD 3.24% 3.26% 3.44%
NET INTEREST MARGIN 3.54% 3.56% 3.69%
* Allowance for loan losses excluded from average total loans and earning assets
** Tax equivalent ratios for investment securities


RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES:
TANGIBLE COMMON EQUITY AND TANGIBLE ASSETS *
(Dollars In Thousands, Except Share Data) (Unaudited)
Quarter Ended
March 31, 2016 December 31, 2015 March 31, 2015
Total shareholders’ equity$546,248 $532,930 $505,579
Goodwill and other intangible assets, net (70,458) (70,658) (71,385)
Tangible common equity$475,790 $462,272 $434,194
Total assets$4,720,401 $4,713,468 $4,413,278
Goodwill and other intangible assets, net (70,458) (70,658) (71,385)
Tangible assets$4,649,943 $4,642,810 $4,341,893
Common shares outstanding 78,845,873 78,608,717 78,329,458
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.

WILSHIRE BANCORP, INC. Alex Ko, EVP & CFO, (213) 427-6560 www.wilshirebank.com

Source:Wilshire Bancorp, Inc.