×

Wilshire Bancorp Reports Net Income of $11.6 Million or $0.16 Earnings Per Share for First Quarter 2013

LOS ANGELES, April 22, 2013 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq:WIBC) (the "Company"), the holding company for Wilshire State Bank (the "Bank"), today reported net income available to common shareholders of $11.6 million, or $0.16 per diluted common share, for the quarter ended March 31, 2013. This compares to net income available to common shareholders of $17.9 million, or $0.25 per common share, for the same period of the prior year, and net income of $15.2 million, or $0.21 per common share, for the fourth quarter of 2012.

Pre-tax, pre-provision income (PTPP)* was $17.0 million for the first quarter of 2013, compared with $16.1 million in the first quarter of 2012, and $11.6 million in the fourth quarter of 2012.

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "Our first quarter results reflect the strong core earnings power of the Company, as we generated an annualized return on average assets of 1.70% and an annualized return on average equity of 13.3%. We also showed solid growth in both revenue and pre-tax, pre-provision income over the first quarter of 2012. While overall loan growth remains challenging given the intense competition for quality loans, we are pleased with our continued progress in developing more commercial lending relationships. We originated $55 million of commercial loans during the first quarter of 2013 – our highest level in several years – and also saw significant inflows of demand deposits from new commercial customers. We also continue to see steady improvement in asset quality, which has kept our credit costs low.

"We continue to have a very strong capital position and our operations are generating additional capital each quarter. Accordingly, we have initiated a more active capital management plan designed to both invest in the growth of our franchise and return excess capital to shareholders. The first step in this plan was the authorization of a program to repurchase up to 5% of our outstanding common shares. We are actively evaluating other uses for our capital including but not limited to the potential reinstatement of a common stock dividend, investments in de novo branches, and strategic acquisitions. We are optimistic that our more active capital management plan will create additional value for shareholders going forward," said Mr. Yoo.


Q1 2013 Summary:

  • Net income available to common shareholders totaled $11.6 million or $0.16 per diluted common share
  • Total revenue of $34.3 million, an increase of 5.8% from the Q4 2012 and 11.1% from the Q1 2012
  • Return on average assets of 1.70%; return on average equity of 13.3%
  • Operating efficiency ratio reduced to 50.5% for Q1 2013, compared to 64.1% for Q4 2012
  • Loans receivable totaled $2.05 billion at March 31, 2013, an increase of 2.0% from $2.01 billion at December 31, 2012
  • Non-accrual loans reduced 10.3% and classified loans reduced 6.2% in Q1 2013 compared to Q4 2012
  • Continued improvement in credit quality resulted in no provision for losses on loans and loan commitments for Q1 2013
  • Board of Directors authorized repurchase of up to 5% of outstanding common stock

STATEMENT OF OPERATIONS

Net Interest Income and Margin

Net interest income before credit for losses on loans and loan commitments totaled $25.6 million for the first quarter of 2013, an increase of 4.6% from $24.4 million for the first quarter of 2012, and unchanged from the fourth quarter of 2012. The increase from the prior year was primarily due to a reduction in interest expense on deposits.

Net interest margin was 4.09% for the first quarter of 2013, compared to 4.07% in the first quarter of 2012, and 4.33% for the fourth quarter of 2012. The decrease in net interest margin from the fourth quarter of 2012 was primarily due to lower yields on loans, partially offset by a reduction in the cost of deposits.

Loan yields decreased to 5.21% for the first quarter of 2013 from 5.54% for the fourth quarter of 2012 due to new loans that were originated at rates that were lower than that of the existing portfolio, as a result of the low interest rate environment and competitive landscape within the banking industry. The total cost of interest-bearing deposits declined to 0.73% for the first quarter of 2013, down from 0.79% for the fourth quarter of 2012. The reduction in deposit rates was the result of declines in deposit costs across all categories.

Non-Interest Income

Total non-interest income was $8.7 million for the first quarter of 2013, compared to $6.4 million for the first quarter of 2012, and $6.7 million for the fourth quarter of 2012. The increase from the prior quarter was primarily due to an increase in the net gain on sales of loans to $3.5 million during the first quarter of 2013 from $1.2 million during the fourth quarter of 2012.

The $3.5 million in net gains on sales of loans recognized in the first quarter of 2013 represents $3.4 million in gains from the sale of SBA loans, and $13 thousand in gains from the sale of residential mortgage loans.

Non-Interest Expense

Total non-interest expense was $17.3 million for the first quarter of 2013, compared with $14.7 million for the first quarter of 2012, and $20.7 million for the fourth quarter of 2012. The decrease in total non-interest expense from the prior quarter was primarily due to a $3.9 million impairment charge against the Company's FDIC indemnification asset that increased non-interest expense in the fourth quarter of 2012. No impairment charge against the FDIC indemnification asset was recorded in the first quarter of 2013.

Total salaries and employee benefits expense was $8.8 million for the first quarter of 2013, compared with $8.2 million for the first quarter of 2012, and $7.9 million for the fourth quarter of 2012. The increase from the prior year was primarily due to an increase in the number of employees. The increase from the prior quarter was primarily due to seasonally higher payroll taxes and employee benefits.

Other non-interest expense for the first quarter of 2013 totaled $5.8 million, compared with $3.9 million in the first quarter of 2012, and $6.2 million for the fourth quarter of 2012. The increase from the first quarter of 2012 was primarily attributable to an increase in legal fees and other miscellaneous expenses. The decrease from the fourth quarter of 2012 was primarily attributable to a decline in other loan and OREO expenses.

The Company's operating efficiency ratio was 50.5% for the first quarter of 2013, compared with 47.8% for the first quarter of 2012 and 64.1% for the fourth quarter of 2012.

Tax Provision

For the first quarter of 2013, the Company recorded a provision for income taxes totaling $5.4 million, reflecting an effective tax rate of 31.7%. The effective tax rate is lower than historical rates primarily due to the generation of tax credits associated with the Company's investment in affordable housing programs.

BALANCE SHEET

Total gross loans receivable, were $2.06 billion at March 31, 2013, compared to $2.01 billion at December 31, 2012. The increase in total gross loans receivable during the first quarter of 2013 was primarily due to a $29.3 million increase in the commercial and industrial portfolio.

The following table shows gross loans (excluding loan fees and allowance for loan losses) by loan type:

Loan Categories

Quarter Ended
(Dollars In Thousands) Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012
Construction $ 34,030 $ 20,928 $ 20,311 $ 27,030 $ 38,552
Real Estate Secured 1,695,980 1,692,273 1,629,951 1,622,786 1,571,351
Commercial & Industrial 313,645 284,318 288,585 297,807 280,347
Consumer 11,684 13,674 14,153 13,595 16,433
Gross Loans Receivable * 2,055,339 2,011,193 1,953,000 1,961,218 1,906,683
Held-For-Sale Loans 134,129 145,973 140,109 66,485 48,128
Total Gross Loans * $ 2,189,468 $ 2,157,166 $ 2,093,109 $ 2,027,703 $ 1,954,811
* Gross Loans Receivable and Total Gross Loans are not net of deferred fees and costs as is shown in the consolidated balance sheet presentation

The following table shows quarterly loan originations by loan type:

Loan Originations

Dollars In Thousands)
Quarter Ended
March 31, 2013 December 31, 2012 September 30, 2012 June 30, 2012 March 31, 2012
Real Estate Secured $ 86,839 45% $ 157,901 60% $ 80,700 39% $ 81,782 33% $ 46,029 36%
Commercial & Industrial 55,096 29% 34,059 13% 40,683 19% 50,469 21% 27,223 22%
Consumer 537 0% 3,083 1% 1,805 1% 304 0% 100 0%
SBA 27,379 14% 38,700 15% 27,457 13% 37,989 16% 33,043 26%
Residential Mortgage 22,831 12% 30,624 11% 58,589 28% 74,673 30% 20,630 16%
Total Loan Originations $ 192,682 100% $ 264,367 100% $ 209,234 100% $ 245,217 100% $ 127,025 100%

Total SBA loans held-for-sale at the end of the first quarter of 2013 totaled $64.9 million compared to $72.8 million at the end of the previous quarter. The remaining $69.2 million in loans held-for-sale at March 31, 2013 were comprised entirely of residential mortgage loans. The decision to retain or sell SBA loan production will be made on a quarter-to-quarter basis, dependent upon pricing in the secondary market and the Company's liquidity needs. During the first quarter of 2013, the Company sold approximately $30.3 million in SBA loans.

Total deposits were $2.16 billion at March 31, 2013, compared with $2.17 billion at December 31, 2012. Decreases in non-jumbo time deposits and money market deposits were partially offset by an increase in non-interest bearing demand deposits and jumbo time deposits. Compared to the March 31, 2012, non-interest bearing demand deposits increased 16.8% at March 31, 2013.

CREDIT QUALITY

The Company has experienced improving credit trends for several quarters, most notably evidenced by decreases in non-accrual loans and classified loans. In light of the continued improvement in credit quality, the Company determined that no provision for losses on loans and loan commitments was required for the first quarter of 2013. The allowance for loan losses totaled $58.6 million, or 2.85% of gross loans (excluding loans held-for-sale), at March 31, 2013, compared to $63.3 million, or 3.15% of gross loans (excluding loans held-for-sale), at December 31, 2012. The coverage ratio of the allowance for loan losses to non-performing assets was 214.6% at March 31, 2013, compared with 210.7% at December 31, 2012.

Non-Accrual Loans

At March 31, 2013, total non-accrual loans were $25.1 million, or 1.15% of gross loans, compared to $28.0 million, or 1.30% of gross loans, at December 31, 2012. Covered loan (previously acquired loans covered under FDIC loss share agreements) non-accruals totaled $5.0 million at March 31, 2013.

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

NON-ACCRUAL LOANS
Quarter Ended
(Dollars In Thousands, Net of SBA Gty Portions) Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012
Construction $ 5,542 $ 5,644 $ 7,678 $ 8,139 $ 8,139
Real Estate Secured 18,366 21,007 29,726 32,158 41,482
Commercial & Industrial 1,169 1,302 1,478 1,188 1,370
Total Non-Accrual Loans $ 25,077 $ 27,953 $ 38,882 $ 41,485 $ 50,991

Gross Loan Charge-offs

Loan charge-offs for the first quarter of 2013 totaled $5.6 million, compared to $3.0 million in the fourth quarter of 2012. The largest components of the first quarter 2013 loan charge-offs was a $1.7 million partial charge-off of a real estate secured loan related to a golf course and a $1.3 million partial charge-off of a gas station loan. Covered loan charge-offs totaled $35 thousand for the first quarter of 2013.

Charge-offs by loan type are reflected in the table below:

LOAN CHARGE-OFFS Quarter Ended
(Dollars In Thousands) Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012
Real Estate Secured $ 4,405 $ 1,776 $ 3,015 $ 2,930 $ 2,928
Commercial & Industrial 1,183 1,224 112 511 1,435
Consumer 1 -- -- 1 1
Total Charge-Offs Loans $ 5,589 $ 3,000 $ 3,127 $ 3,442 $ 4,364

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

DELINQUENT LOANS -- By Days Past Due Quarter Ended
(Dollars In Thousands, Net of SBA Gty Portions) Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012
30 - 59 Days Past Due $ 7,438 $ 3,059 $ 7,507 $ 9,157 $ 6,348
60 - 89 Days Past Due 1,193 1,174 2,994 1,412 3,077
90 Days, and still accruing 1,000 -- -- 923 933
Total Delinquent Loans $ 9,631 $ 4,233 $ 10,501 $ 11,492 $ 10,358

TROUBLED DEBT RESTRUCTURED LOANS Quarter Ended
(Dollars In Thousands, Net of SBA Gty Portions) Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012
Real Estate Secured $ 23,588 $ 28,268 $ 28,524 $ 20,719 $ 20,612
Commercial & Industrial 7,279 7,465 7,482 6,983 7,329
Total TDR Loans $ 30,867 $ 35,733 $ 36,006 $ 27,702 27,941

LOAN CLASSIFICATIONS Quarter Ended
(Dollars In Thousands, Net of SBA Gty Portions) Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012
Special Mention $ 74,553 $ 82,275 $ 94,716 $ 84,345 $ 108,660
Substandard 144,521 157,192 165,473 178,290 175,875
Doubtful 9,301 6,856 7,344 8,721 17,700
Total Gross Loans $ 228,375 $ 246,323 $ 267,533 $ 271,356 $ 302,235

CAPITAL RATIOS

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, 2013 Well Capitalized
Regulatory Requirements
Total Excess Above Well
Capitalized Requirements
Tier 1 Leverage Capital Ratio 14.72% 5.00% $ 263,194
Tier 1 Risk-Based Capital Ratio 18.72% 6.00% $ 270,882
Total Risk-Based Capital Ratio 19.99% 10.00% $ 212,735
Tangible Common Equity To Tangible Assets * 12.59% N/A N/A
Tangible Common Equity Per Common Share * $ 4.85 N/A N/A

___________________

* Tangible Common Equity and Tangible Assets are Non-GAAP measure 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 23, 2013, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing 866-953-6857 (domestic number) or 617-399-3481 (international number) and entering passcode #48466954.

COMPANY INFORMATION

Headquartered in Los Angeles, Wilshire State Bank operates 24 branch offices in California, Texas, New Jersey and New York, and eight loan production offices in Dallas and Houston, TX, Atlanta, GA, Aurora, CO, Annandale, VA, Fort Lee, NJ, Newark, CA, and Bellevue, WA, and is an SBA preferred lender nationwide. Wilshire State 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. The Company's strategic goals include increasing shareholder and franchise value by continuing to grow its multi-ethnic banking business and expanding its geographic reach to other similar markets with strong levels of small business activity. Visit us at www.wilshirebank.com.

FORWARD-LOOKING STATEMENTS

This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. Statements concerning future performance, events, financial condition, results of operations, plans 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. You should not place undue reliance on forward-looking statements, as they are subject to risks and uncertainties, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K and our other filings made from time to time with the SEC. 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, and (17) general economic conditions. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes included in the Company's most recent reports on Form 10-K and Form 10-Q, as filed with the Securities and Exchange Commission, as they may be amended from time to time. Results of operations for the most recent quarter are not necessarily indicative of operating results for any future periods. Any projections in this release are based on limited information currently available to management and are subject to change. Since management will only provide guidance at certain points during the year, the Company will not necessarily update the information. Such information speaks only as of the date of this release. Additional information on these and other factors that could affect financial results are included in filings by the Company with the Securities and Exchange Commission.

CONSOLIDATED BALANCE SHEET
(Dollars In Thousands) (Unaudited) March 31, December 31, Three Months March 31, Twelve Months
2013 2012 % Change 2012 % Change
ASSETS:
Cash and Due from Banks $ 86,890 $ 118,495 -27% $ 200,581 -57%
Federal Funds Sold and Other Cash Equivalents 55,005 55,005 0% 170,007 -68%
Total Cash and Cash Equivalents 141,895 173,500 -18% 370,588 -62%
Investment Securities Available For Sale 336,569 332,504 1% 292,305 15%
Investment Securities Held To Maturity 46 50 -8% 62 -26%
Total Investment Securities 336,615 332,554 1% 292,367 15%
Total Loans Held-For-Sale 134,129 145,973 -8% 48,128
179%
Real Estate Construction 33,275 20,254 64% 37,971 -12%
Residential Real Estate 142,958 136,189 5% 106,361 34%
Commercial Real Estate 1,549,280 1,552,741 0% 1,462,111 6%
Commercial and Industrial 312,758 283,525 10% 279,665 12%
Consumer 11,666 13,658 -15% 16,419 -29%
Total Loans Receivable, Net of Deferred Fees and Costs 2,049,937 2,006,367 2% 1,902,527 8%
Allowance For Loan Losses (58,577) (63,285) -7% (99,826) -41%
Total Loans, Net of Allowance for Loan Losses 2,125,489 2,089,055 2% 1,850,829 15%
Accrued Interest Receivable 7,533 7,290 3% 8,385 -10%
Due from Customers on Acceptances 162 54 200% 174 -7%
Other Real Estate Owned 1,219 2,080 -41% 2,271 -46%
Premises and Equipment 11,218 11,630 -4% 12,168 -8%
Federal Home Loan Bank (FHLB) Stock, at Cost 11,933 12,090 -1% 14,781 -19%
Cash Surrender Value of Life Insurance 22,074 21,213 4% 20,036 10%
Investment in affordable housing partnerships 38,334 39,154 -2% 37,020 4%
Deferred Income Taxes 17,135 20,862 -18% 2,384 619%
Servicing Assets 10,421 9,610 8% 9,013 16%
Goodwill 6,675 6,675 0% 6,675 0%
FDIC Indemnification Asset 4,954 5,446 -9% 18,901 -74%
Other Assets 20,763 19,650 6% 16,910 23%
TOTAL ASSETS $ 2,756,420 $ 2,750,863 0% $ 2,662,502 4%
LIABILITIES AND SHAREHOLDERS' EQUITY:
LIABILITIES:
Non-interest Bearing Demand Deposits $ 593,584 $ 586,003 1% $ 508,292 17%
Savings and Interest Checking 125,636 125,595 0% 135,622 -7%
Money Market Deposits 623,103 640,266 -3% 602,169 3%
Time Deposits in denomination of $100,000 or more 589,502 573,773 3% 634,039 -7%
Other Time Deposits 230,733 241,172 -4% 330,151 -30%
Total Deposits 2,162,558 2,166,809 0% 2,210,273 -2%
FHLB Borrowings 150,000 150,000 0% -- 0%
Acceptance Outstanding 162 54 200% 174 -7%
Junior Subordinated Debentures 61,857 61,857 0% 87,321 -29%
Accrued Interest Payable 2,056 2,037 1% 3,429 -40%
Other Liabilities 26,074 27,689 -6% 91,409 -71%
Total Liabilities 2,402,707 2,408,446 0% 2,392,606 0%
SHAREHOLDERS' EQUITY:
Preferred Stock -- -- 0% 2,123 -100%
Common Stock 164,915 164,790 0% 164,876 0%
Retained Earnings 182,405 170,816 7% 95,026 92%
Accumulated Other Comprehensive Income 6,393 6,811 -6% 7,871 -19%
Total Shareholders' Equity 353,713 342,417 3% 269,896 31%
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,756,420 $ 2,750,863 0% $ 2,662,502 4%

CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
Quarter Ended Three Mths Quarter Ended Twelve Mths
March 31, 2013 December 31, 2012 % Change March 31, 2012 % Change
INTEREST INCOME
Interest and Fees on Loans $ 26,885 $ 27,472 -2% $ 27,121 -1%
Interest on Investment Securities 1,725 1,596 8% 1,525 13%
Interest on Federal Funds Sold 153 155 -1% 601 -75%
Total Interest Income 28,763 29,223 -2% 29,247 -2%
INTEREST EXPENSE
Deposits 2,849 3,176 -10% 4,255 -33%
FHLB Advances and Other Borrowings 362 420 -14% 553 -35%
Total Interest Expense 3,211 3,596 -11% 4,808 -33%
��
Net Interest Income Before Credit for Losses on Loans and Loan Commitments 25,552 25,627 0% 24,439 5%
Credit for Losses on Loans and Loan Commitments -- (12,000) -100% -- 0%
Net Interest Income After Credit for Losses on Loans and Loan Commitments 25,552 37,627 -32% 24,439 5%
NONINTEREST INCOME
Service Charges on Deposits 2,808 3,051 -8% 3,226 -13%
Gain on Sales of Loans, Net 3,486 1,159 201% 758 360%
Gain on Sale/Call of Investment Securities -- -- 0% 3 -100%
Other 2,411 2,529 -5% 2,399 1%
Total Noninterest Income 8,705 6,739 29% 6,386 36%
NONINTEREST EXPENSES
Salaries and Employee Benefits 8,805 7,920 11% 8,162 8%
FDIC Indemnification Impairment -- 3,900 -100% -- 0%
Occupancy & Equipment 2,040 2,054 -1% 1,942 5%
Data Processing 675 688 -2% 732 -8%
Other 5,764 6,179 -7% 3,891 48%
Total Noninterest Expenses 17,284 20,741 -17% 14,727 17%
Income Before Income Taxes 16,973 23,625 -28% 16,098 5%
Income Taxes Provision (Benefit) 5,384 8,415 -36% (354) N/A
NET INCOME $ 11,589 $ 15,210 -24% $ 16,452 -30%
Preferred Stock Cash Dividend -- -- 0% (802) -100%
Accretion of Preferred Stock Discount -- -- 0% (1,123) -100%
One-time Adjustment From Repurchase of Preferred Stock -- -- 0% 3,389 -100%
Total Preferred Stock Related Adjustment -- -- 0% 1,464 -100%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 11,589 $ 15,210 -24% $ 17,916 -35%
PER COMMON SHARE INFORMATION:
Basic Income Per Common Share $ 0.16 $ 0.21 -24% $ 0.25 -35%
Diluted Income Per Common Share $ 0.16 $ 0.21 -24% $ 0.25 -35%
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic 71,295,673 71,294,573 71,282,518
Diluted 71,431,841 71,421,836 71,311,209


SUMMARY OF FINANCIAL DATA
Dollars In Thousands, Except Per Share Data) (Unaudited)
Quarter Ended
AVERAGE BALANCES March 31, 2013 December 31, 2012 March 31, 2012
Average Assets $ 2,726,058 $ 2,609,509 $ 2,641,982
Average Equity 348,071 334,380 314,980
Average Net Loans 2,063,649 1,984,434 1,855,310
Average Deposits 2,135,445 2,153,976 2,179,151
Average Time Deposits in denomination of $100,000 or more 581,213 585,134 646,162
Average FHLB & Other Borrowings 150,000 14,130 21,132
Average Interest Earning Assets 2,517,165 2,386,128 2,422,351
Quarter Ended
PROFITABILITY March 31, 2013 December 31, 2012 March 31, 2012
Annualized Return on Average Assets 1.70% 2.33% 2.49%
Annualized Return on Average Equity 13.32% 18.19% 20.89%
Efficiency Ratio 50.45% 64.08% 47.78%
Annualized Operating Expense/Average Assets 2.54% 3.18% 2.23%
Annualized Net Interest Margin 4.09% 4.33% 4.07%
As Of
DEPOSIT COMPOSITION March 31, 2013 Cost of Funds December 31, 2012 Cost of Funds March 31, 2012 Cost of Funds
Noninterest Bearing Demand Deposits 27.4% 0.00% 27.0% 0.00% 23.0% 0.00%
Savings & Interest Checking 5.8% 1.51% 5.8% 1.66% 6.2% 2.22%
Money Market Deposits 28.8% 0.63% 29.6% 0.66% 27.2% 0.84%
Time Deposits of $100,000 or More 27.3% 0.64% 26.5% 0.72% 28.7% 0.90%
Other Time Deposits 10.7% 0.80% 11.1% 0.84% 14.9% 1.04%
Total Deposits 100.0% 0.53% 100.0% 0.59% 100.0% 0.78%
As Of
CAPITAL RATIOS March 31, 2013 December 31, 2012 March 31, 2012
Tier 1 Leverage Ratio 14.72% 14.87% 12.49%
Tier 1 Risk-Based Capital Ratio 18.72% 18.47% 18.00%
Total Risk-Based Capital Ratio 19.99% 19.74% 19.31%
Total Shareholders' Equity $ 353,713 $ 342,417 $ 269,896
Book Value Per Common Share $ 4.96 $ 4.80 $ 3.76
Tangible Common Equity Per Common Share * $ 4.85 $ 4.69 $ 3.65
Tangible Common Equity to Tangible Assets ** 12.59% 12.20% 9.79%
* Tangible common equity excludes goodwill, other intangible assets, and TARP preferred stock
** Tangible assets excludes goodwill and intangible assets


ALLOWANCE FOR LOAN LOSSES
(Dollars In Thousands) (Unaudited)
Quarter Ended
March 31, 2013 December 31, 2012 September 30, 2012 June 30, 2012 March 31, 2012
Balance at Beginning of Period $ 63,285 $ 74,353 $ 89,134 $ 99,826 $ 102,982
Credit for Losses on Loans -- (10,600) (12,000) (9,000) --
Recoveries on Loans Previously Charged-off 881 2,532 346 1,750 1,208
Gross Loan Charge-offs (5,589) (3,000) (3,127) (3,442) (4,364)
Balance at End of Period $ 58,577 $ 63,285 $ 74,353 $ 89,134 $ 99,826
Net Loan Charge-offs/Average Total Loans 0.23% 0.02% 0.14% 0.09% 0.17%
Charge-offs/Average Total Loans 0.27% 0.15% 0.16% 0.18% 0.24%
Allowance for Loan Losses/Gross Loans * 2.85% 3.15% 3.81% 4.54% 5.24%
Allowance for Loan Losses/Legacy Wilshire Loans * 3.01% 3.33% 4.08% 4.89% 5.69%
Allowance for Loan Losses/Non-accrual Loans 233.59% 226.40% 191.23% 214.86% 195.77%
Allowance for Loan Losses/Non-performing Loans 224.63% 226.40% 191.23% 210.18% 192.25%
Allowance for Loan Losses/Non-performing Assets 214.60% 210.73% 180.65% 190.62% 184.20%
* Excluding held-for-sale loans
NON-PERFORMING ASSETS Quarter Ended
(Dollars In Thousands, Net of SBA Gty Portions)
(Unaudited) March 31, 2013 December 31, 2012 September 30, 2012 June 30, 2012 March 31, 2012
Non-accrual Loans $ 25,077 $ 27,953 $ 38,882 $ 41,485 $ 50,991
Loans 90 days or more past due and still accruing 1,000 -- -- 923 933
Total Non-performing Loans 26,077 27,953 38,882 42,408 51,924
Total OREO 1,219 2,079 2,277 4,351 2,271
Total Non-performing Assets $ 27,296 $ 30,032 $ 41,159 $ 46,759 $ 54,195
Total Non-performing Loans/Gross Loans 1.19% 1.30% 1.86% 2.09% 2.66%
Total Non-performing Assets/Total Assets 0.99% 1.09% 1.57% 1.80% 2.04%
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS Quarter Ended
(Dollars In Thousands) (Unaudited) March 31, 2013 December 31, 2012 September 30, 2012 June 30, 2012 March 31, 2012
Balance at beginning of period $ 1,023 $ 2,423 $ 2,423 $ 3,423 $ 3,423
Credit for losses on off-balance sheet items -- (1,400) -- (1,000) --
Balance at end of period $ 1,023 $ 1,023 $ 2,423 $ 2,423 $ 3,423

WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
For the Quarter Ended
March 31, 2013 December 31, 2012 March 31, 2012
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 $ 1,804,496 $ 22,435 4.97% $ 1,749,807 $ 22,753 5.20% $ 1,665,217 $ 22,914 5.50%
Commercial Loans 314,389 3,630 4.62% 300,138 3,703 4.94% 281,761 3,397 4.82%
Consumer Loans 12,827 80 2.50% 13,708 89 2.60% 15,740 105 2.67%
Total Gross Loans 2,131,712 26,145 4.91% 2,063,653 26,545 5.15% 1,962,718 26,416 5.38%
Loan Fees toward Yield 740 927 705
Allowance for Loan Losses & Unearned Income (68,063) (79,219) (107,408)
Net Loans 2,063,649 26,885 5.21% 1,984,434 27,472 5.54% 1,855,310 27,121 5.85%
INVESTMENT SECURITIES AND
OTHER INTEREST-EARNING ASSETS:
Investment Securities* 324,261 1,725 2.37% 297,205 1,596 2.42% 308,486 1,525 2.27%
Federal Funds Sold 129,255 153 0.47% 104,489 155 0.59% 258,555 601 0.93%
Total Investment Securities and
Other Earning Assets 453,516 1,878 1.83% 401,694 1,751 1.94% 567,041 2,126 1.66%
TOTAL INTEREST-EARNING ASSETS $ 2,517,165 $ 28,763 4.60% $ 2,386,128 $ 29,223 4.93% $ 2,422,351 $ 29,247 4.87%
Total Non-Interest Earning Assets 208,893 223,381 219,631
TOTAL ASSETS $ 2,726,058 $ 2,609,509 $ 2,641,982
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money Market $ 623,471 $ 976 0.63% $ 653,020 $ 1,072 0.66% $ 583,711 $ 1,223 0.84%
NOW 25,958 12 0.19% 27,317 14 0.21% 24,215 20 0.33%
Savings 100,560 464 1.85% 99,371 511 2.06% 100,964 675 2.67%
Time Deposits of $100,000 or More 581,213 924 0.64% 585,134 1,059 0.72% 646,162 1,447 0.90%
Other Time Deposits 235,862 473 0.80% 248,237 520 0.84% 340,965 890 1.04%
Total Interest Bearing Deposits 1,567,064 2,849 0.73% 1,613,079 3,176 0.79% 1,696,017 4,255 1.00%
BORROWINGS:
FHLB Advances and Other Borrowings 150,044 80 0.21% 14,130 10 0.28% 21,132 6 0.11%
Junior Subordinated Debentures 61,857 282 1.82% 74,295 410 2.21% 87,321 547 2.51%
Total Borrowings 211,901 362 0.68% 88,425 420 1.90% 108,453 553 2.04%
TOTAL INTEREST BEARING LIABILITIES $ 1,778,965 $ 3,211 0.72% $ 1,701,504 $ 3,596 0.85% $ 1,804,470 $ 4,808 1.07%
Non-Interest Bearing Deposits 568,381 540,897 483,134
Other Liabilities 30,641 32,728 39,398
Shareholders' Equity 348,071 334,380 314,980
TOTAL LIABILITIES AND EQUITY $ 2,726,058 $ 2,609,509 $ 2,641,982
NET INTEREST INCOME $ 25,552 $ 25,627 $ 24,439
.
NET INTEREST SPREAD 3.88% 4.09% 3.80%
NET INTEREST MARGIN 4.09% 4.33% 4.07%
* 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, 2013 December 31, 2012 March 31, 2012
Total shareholders' equity $ 353,713 $ 342,417 $ 269,896
Preferred stock, net of discount -- -- (2,123)
Goodwill and other intangible assets, net (7,642) (7,712) (7,925)
Tangible common equity $ 346,071 $ 334,705 $ 259,848
Total assets $ 2,756,420 $ 2,750,863 $ 2,662,502
Goodwill and other intangible assets, net (7,642) (7,712) (7,925)
Tangible assets $ 2,748,778 $ 2,743,151 $ 2,654,577
Common shares outstanding 71,296,956 71,295,144 71,282,518
PRE-TAX, PRE-PROVISION INCOME (PTPP) *
(Dollars In Thousands) (Unaudited) Quarter Ended
March 31, 2013 December 31, 2012 March 31, 2012
Net Income $ 11,589 $ 15,210 $ 16,452
Add Back - Income Tax Provision (Benefit) 5,384 8,415 (354)
Add Back - Credit for Losses on Loans and Loan Commitments -- (12,000) --
Pre-tax, Pre-Provision Income (PTPP) $ 16,973 $ 11,625 $ 16,098
PTPP to Average Assets (Annualized) 2.49% 1.78% 2.44%
* Tangible Common Equity, Tangible Assets, and Pre-tax, Pre-provision Income 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.