×

Wilshire Bancorp Reports Net Income of $11.5 Million or $0.16 Earnings Per Share for Second Quarter 2013

LOS ANGELES, July 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 $11.5 million, or $0.16 per diluted common share, for the quarter ended June 30, 2013. This compares to net income available to common shareholders of $22.1 million, or $0.31 per common share, for the same period of the prior year, and net income of $11.6 million, or $0.16 per common share, for the first quarter of 2013.

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "We delivered another strong performance in the second quarter that reflects the consistent earnings power of the Company. We generated an annualized return on assets of 1.67% and an annualized return on equity of 13.0%. In addition, pre-tax, pre-provision income for the second quarter of 2013 was $17.0 million, a 38% increase from $12.4 million for the second quarter of 2012. We saw a continuation of most of the trends we have experienced over the past several quarters, most notably low credit costs, slight compression in our net interest margin, stable expense levels and modest loan growth.

"As we indicated at the beginning of 2013, one of our top priorities was to be more active in our deployment of excess capital to create additional value for our shareholders. Our actions in the second quarter of 2013 reflect our efforts to achieve this goal. We returned cash to shareholders through the implementation of a stock repurchase program and also reinstated our quarterly cash dividend. In addition, we announced two acquisitions – BankAsiana in the New York/New Jersey market and Saehan Bancorp in the Los Angeles market – that will expand our franchise and increase our earnings power in the years ahead. Following these actions, we expect to continue to be well capitalized and have the flexibility to continue returning capital to shareholders and reinvesting in our business," said Mr. Yoo.

Q2 2013 Summary

  • Net income available to common shareholders totaled $11.5 million or $0.16 per diluted common share
  • Total revenue of $34.1 million, an increase of 4.0% from the second quarter of 2012
  • Return on average assets of 1.67%; return on average equity of 12.95%
  • Operating efficiency ratio of 50.1% for Q2 2013 compared to 50.5% for Q1 2013
  • Loans receivable totaled $2.09 billion at June 30, 2013, an increase of 2.1% from $2.05 billion at March 31, 2013
  • Continued improvement in credit quality resulted in no provision for losses on loans and loan commitments for Q2 2013
  • Declared cash dividend of $0.03 per common share
  • Repurchased 651,412 shares of common stock as part of the Company's stock repurchase program
  • Announced acquisitions of BankAsiana in New Jersey and Saehan Bancorp in Los Angeles

STATEMENT OF OPERATIONS

Pre-Tax, Pre-Provision Income

Pre-tax, pre-provision income (PTPP) was $17.0 million for the second quarter of 2013, compared with $12.4 million in the second quarter of 2012, and $17.0 million in the first quarter of 2013. PTPP is a 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 PTPP to net income.

Net Interest Income and Margin

Net interest income before credit for losses on loans and loan commitments totaled $25.8 million for the second quarter of 2013, an increase of 6.2% from $24.2 million for the second quarter of 2012, and increased from $25.6 million in the first quarter of 2013. The increase from the prior periods was primarily due to a reduction in interest expense on deposits.

Net interest margin was 4.06% for the second quarter of 2013, compared to 4.13% in the second quarter of 2012, and 4.09% for the first quarter of 2013. The decrease in net interest margin from the first quarter of 2013 was primarily due to lower yields on newly originated loans, partially offset by a reduction in the cost of deposits.

Loan yields decreased to 5.10% for the second quarter of 2013 from 5.21% for the first quarter of 2013 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 deposits declined to 0.51% for the second quarter of 2013, down from 0.53% for the first quarter of 2013. The reduction in the total cost of deposits is primarily attributable to an increase in non-interest bearing deposits as a percentage of total deposits.

Non-Interest Income

Total non-interest income was $8.3 million for the second quarter of 2013, compared to $8.5 million for the second quarter of 2012, and $8.7 million for the first quarter of 2013. The decrease from the prior quarter was primarily due to lower net gain on sales of loans during the second quarter of 2013.

The $3.1 million in net gains on sales of loans recognized in the second quarter of 2013 was substantially all gains from the sale of SBA loans. During the second quarter of 2013, the Company sold $30.6 million in SBA loans, an increase from $30.3 million during the first quarter of 2013.

Non-Interest Expense

Total non-interest expense was $17.1 million for the second quarter of 2013, compared with $20.4 million for the second quarter of 2012, and $17.3 million for the first quarter of 2013.

Total salaries and employee benefits expense was $9.5 million for the second quarter of 2013, compared with $9.0 million for the second quarter of 2012, and $8.8 million for the first quarter of 2013. The increase from the prior quarter was due to an increase in accrual for bonuses and company-wide salary increases that took effect in the second quarter of 2013.

Other non-interest expense for the second quarter of 2013 totaled $4.9 million, compared with $6.7 million in the second quarter of 2012, and $5.8 million for the first quarter of 2013. The decrease from the second quarter of 2012 was primarily attributable to a decline in legal fees and regulatory assessment fees. The decrease from the first quarter of 2013 was primarily attributable to a reduction in professional fees and expenses related to the Company's bank owned life insurance plan.

The Company's operating efficiency ratio was 50.1% for the second quarter of 2013, compared with 62.2% for the second quarter of 2012 and 50.5% for the first quarter of 2013.

Tax Provision

For the second quarter of 2013, the Company recorded a provision for income taxes totaling $5.5 million, reflecting an effective tax rate of 32.1%. 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 $2.10 billion at June 30, 2013, compared to $2.06 billion at March 31, 2013. The increase in total gross loans receivable during the second quarter of 2013 was primarily due to a $23.4 million increase in the commercial and industrial portfolio and a $19.6 million increase in the real estate secured portfolio. Total cash and due from banks increased $75.7 million during the second quarter of 2013 to $162.6 million due to a large temporary increase of a customer's business demand deposit account balance, a reduction in warehouse lending, and pay-down of investment securities. During the second quarter of 2013, the Company committed to fund two additional low income tax credit investments totaling $8.0 million.

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

Loan Categories

Quarter Ended
(Dollars In Thousands) June 30, 2013 March 31, 2013 December 31, 2012 September 30, 2012 June 30, 2012
Construction $ 36,371 $ 34,030 $ 20,928 $ 20,311 $ 27,030
Real Estate Secured 1,715,567 1,695,980 1,692,273 1,629,951 1,622,786
Commercial & Industrial 337,057 313,645 284,318 288,585 297,807
Consumer 11,089 11,684 13,674 14,153 13,595
Gross Loans Receivable * 2,100,084 2,055,339 2,011,193 1,953,000 1,961,218
Held-For-Sale Loans 60,910 134,129 145,973 140,109 66,485
Total Gross Loans * $ 2,160,994 $ 2,189,468 $ 2,157,166 $ 2,093,109 $ 2,027,703
* 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

Quarter Ended
(Dollars In Thousands) June 30, 2013 March 31, 2013 December 31, 2012 September 30, 2012 June 30, 2012
Real Estate Secured $ 93,606 48% $ 86,839 45% $ 157,901 60% $ 80,700 39% $ 81,782 33%
Commercial & Industrial 40,927 21% 55,096 29% 34,059 13% 40,683 19% 50,469 21%
Consumer 75 0% 537 0% 3,083 1% 1,805 1% 304 0%
SBA 40,209 21% 27,379 14% 38,700 15% 27,457 13% 37,989 16%
Residential Mortgage 20,022 10% 22,831 12% 30,624 11% 58,589 28% 74,673 30%
Total Loan Originations $ 194,839 100% $ 192,682 100% $ 264,367 100% $ 209,234 100% $ 245,217 100%

Originations for the second quarter of 2013 increased slightly to $194.8 million compared to the first quarter of 2013. Compared to originations for the quarter ended June 30, 2012, originations for the second quarter of 2013 declined largely due to the reduction in residential mortgage loans. During the second quarter of 2012 the Company had a large increase in warehouse loan originations.

Total SBA loans held-for-sale at the end of the second quarter of 2013 totaled $59.7 million compared to $64.9 million at the end of the previous quarter. The decision to retain or sell SBA loan production is made on a quarter-to-quarter basis, depending on prevailing pricing in the secondary market and the Company's liquidity needs. During the second quarter of 2013, the Company sold approximately $30.6 million in SBA loans compared to $30.3 million sold during the first quarter of 2013 and $25.1 million sold during the second quarter of 2012.

Total deposits were $2.18 billion at June 30, 2013, compared with $2.16 billion at March 31, 2013. Increases in non-interest bearing demand deposits and savings and interest checking deposits were partially offset by decreases in time deposits. At June 30, 2013, non-interest bearing demand deposits represented 28.6% of total deposits, compared with 23.6% at June 30, 2012.

CREDIT QUALITY

The Company has experienced improving credit trends for several quarters, most notably evidenced by decreases in criticized 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 second quarter of 2013. The allowance for loan losses totaled $54.9 million, or 2.62% of gross loans (excluding loans held-for-sale), at June 30, 2013, compared to $58.6 million, or 2.85% of gross loans (excluding loans held-for-sale), at March 31, 2013. The coverage ratio of the allowance for loan losses to non-performing assets was 197.9% at June 30, 2013, compared with 214.6% at March 31, 2013.

Non-Performing Loans

At June 30, 2013, total non-performing loans were $26.8 million, or 1.24% of total gross loans, compared to $26.1 million, or 1.19% of total gross loans, at March 31, 2013. Non-performing covered loans (previously acquired loans covered under FDIC loss share agreements) totaled $5.4 million at June 30, 2013.

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

NON-PERFORMING LOANS Quarter Ended
(Dollars In Thousands, Net of SBA Guaranty Portions) Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012
Construction $ 5,467 $ 5,542 $ 5,644 $ 7,678 $ 8,139
Real Estate Secured 20,090 19,366 21,007 29,726 33,032
Commercial & Industrial 1,224 1,169 1,302 1,478 1,237
Total Non-Performing Loans 26,781 26,077 27,953 38,882 42,408

Gross Loan Charge-offs

Loan charge-offs for the second quarter of 2013 totaled $4.4 million, compared to $5.6 million in the first quarter of 2013. The largest components of the second quarter 2013 loan charge-offs were two loans secured by carwash properties totaling $2.1 million. Covered loan charge-offs totaled $164 thousand for the second quarter of 2013.

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

LOAN CHARGE-OFFS Quarter Ended
(Dollars In Thousands) Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012
Real Estate Secured $ 3,545 $ 4,405 $ 1,776 $ 3,015 $ 2,930
Commercial & Industrial 746 1,183 1,224 112 511
Consumer 123 1 -- -- 1
Total Loan Charge-Offs $ 4,414 $ 5,589 $ 3,000 $ 3,127 $ 3,442

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 Guaranty Portions) Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012
30 - 59 Days Past Due $ 4,993 $ 7,438 $ 3,059 $ 7,507 $ 9,157
60 - 89 Days Past Due 3,637 1,193 1,174 2,994 1,412
90 Days, and still accruing 126 1,000 -- -- 923
Total Delinquent Loans $ 8,756 $ 9,631 $ 4,233 $ 10,501 $ 11,492
TROUBLED DEBT RESTRUCTURED LOANS Quarter Ended
(Dollars In Thousands, Net of SBA Guaranty Portions) Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012
Real Estate Secured $ 23,671 $ 23,588 $ 28,268 $ 28,524 $ 20,719
Commercial & Industrial 6,730 7,279 7,465 7,482 6,983
Total TDR Loans $ 30,401 $ 30,867 $ 35,733 $ 36,006 $ 27,702
LOAN CLASSIFICATIONS Quarter Ended
(Dollars In Thousands, Net of SBA Guaranty Portions) Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012
Special Mention $ 49,571 $ 74,553 $ 82,275 $ 94,716 $ 84,345
Substandard 138,319 144,521 157,192 165,473 178,290
Doubtful 6,722 9,301 6,856 7,344 8,721
Total Criticized and Classified Loans $ 194,612 $ 228,375 $ 246,323 $ 267,533 $ 271,356
Classified Loans $ 145,041 $ 153,822 $ 164,048 $ 172,817 $ 187,011

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) June 30, 2013 Well Capitalized
Regulatory Requirements
Total Excess Above Well
Capitalized Requirements
Tier 1 Leverage Capital Ratio 14.67% 5.00% $ 266,347
Tier 1 Risk-Based Capital Ratio 18.73% 6.00% $ 274,663
Total Risk-Based Capital Ratio 20.00% 10.00% $ 215,706
Tangible Common Equity To Tangible Assets * 12.51% N/A N/A
Tangible Common Equity Per Common Share * $ 4.92 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

Dividend Reinstatement

The Company reinstated its quarterly dividend to common shareholders during the second quarter of 2013. A cash dividend of $0.03 per common share was declared and a total amount of $2.1 million was paid on July 15, 2013 to shareholders of record at the close of business on June 30, 2013.

Share Repurchase Program

In March 2013, the Board of Directors of Wilshire Bancorp authorized the repurchase of up to 5% of the Company's outstanding shares of common stock. During the second quarter of 2013, the Company spent $4.3 million to repurchase 651,412 shares of its common stock at an average price of $6.56. The 651,412 repurchased shares of common stock account for 18% of the total authorized amount and an additional 2.9 million shares can be repurchased before the program's expiration. However, the Company has no obligation to repurchase additional shares under this program and may suspend or discontinue it at any time.

Acquisition of BankAsiana and Saehan Bancorp

The Company agreed to acquire New Jersey-based BankAsiana and Los Angeles-based Saehan Bancorp. Both acquisitions are expected to close by the end of 2013. The acquisition of BankAsiana would expand the Company's operations on the East Coast while the acquisition of Saehan Bank would help strengthen our operations in our primary market.

On a pro forma basis, including the pending acquisitions of BankAsiana and Saehan Bancorp, Wilshire Bancorp would have approximately $3.5 billion in total assets, $2.7 billion in net loans, and $2.8 billion in total deposits as of March 31, 2013.

CONFERENCE CALL

Management will host its quarterly conference call on July 23, 2013, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing 877-703-6109 (domestic number) or 857-244-7308 (international number) and entering passcode #42187370.

COMPANY INFORMATION

Headquartered in Los Angeles, Wilshire State Bank operates 25 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) June 30, March 31, Three Months June 30, Twelve Months
2013 2013 % Change 2012 % Change
ASSETS:
Cash and Due from Banks $ 162,553 $ 86,890 87% $ 147,202 10%
Federal Funds Sold and Other Cash Equivalents 55,005 55,005 0% 60,004 -8%
Total Cash and Cash Equivalents 217,558 141,895 53% 207,206 5%
Investment Securities Available For Sale 303,836 336,569 -10% 298,364 2%
Investment Securities Held To Maturity 42 46 -9% 57 -26%
Total Investment Securities 303,878 336,615 -10% 298,421 2%
Total Loans Held-For-Sale 60,910 134,129 -55% 66,485 -8%
Real Estate Construction 35,513 33,275 7% 26,386 35%
Residential Real Estate 153,393 142,958 7% 117,318 31%
Commercial Real Estate 1,557,922 1,549,280 1% 1,502,273 4%
Commercial and Industrial 336,048 312,758 7% 297,049 13%
Consumer 11,068 11,666 -5% 13,580 -18%
Total Loans Receivable, Net of Deferred Fees and Costs 2,093,944 2,049,937 2% 1,956,606 7%
Allowance For Loan Losses (54,937) (58,577) -6% (89,134) -38%
Loans Receivable, Net of Allowance for Loan Losses 2,039,007 1,991,360 -2% 1,867,472 9%
Accrued Interest Receivable 7,135 7,533 -5% 7,806 -9%
Due from Customers on Acceptances 293 162 81% 382 -23%
Other Real Estate Owned 982 1,219 -19% 4,351 -77%
Premises and Equipment 11,699 11,218 4% 12,248 -4%
Federal Home Loan Bank (FHLB) Stock, at Cost 13,280 11,933 11% 14,051 -5%
Cash Surrender Value of Life Insurance 22,225 22,074 1% 20,181 10%
Investment in affordable housing partnerships 45,511 38,334 19% 36,007 26%
Deferred Income Taxes 17,734 17,135 3% 6,115 190%
Servicing Assets 11,040 10,421 6% 9,505 16%
Goodwill 6,675 6,675 0% 6,675 0%
FDIC Indemnification Asset 5,311 4,954 7% 12,629 -58%
Other Assets 24,163 20,763 16% 21,865 11%
TOTAL ASSETS $ 2,787,401 $ 2,756,420 1% $ 2,591,399 8%
LIABILITIES AND SHAREHOLDERS' EQUITY:
LIABILITIES:
Non-interest Bearing Demand Deposits $ 624,770 $ 593,584 5% $ 514,418 21%
Savings and Interest Checking 130,352 125,636 4% 129,157 1%
Money Market Deposits 625,204 623,103 0% 622,177 0%
Time Deposits in denomination of $100,000 or more 584,140 589,502 -1% 608,123 -4%
Other Time Deposits 217,832 230,733 -6% 306,123 -29%
Total Deposits 2,182,298 2,162,558 1% 2,179,998 0%
FHLB Borrowings 150,000 150,000 0% -- 0%
Acceptance Outstanding 293 162 81% 382 -23%
Junior Subordinated Debentures 61,857 61,857 0% 87,321 -29%
Accrued Interest Payable 2,072 2,056 1% 3,238 -36%
Other Liabilities 35,547 26,074 36% 31,404 13%
Total Liabilities 2,432,067 2,402,707 1% 2,302,343 6%
SHAREHOLDERS' EQUITY:
Common Stock 160,932 164,915 -2% 164,480 -2%
Retained Earnings 191,823 182,405 5% 117,137 64%
Accumulated Other Comprehensive Income 2,579 6,393 -60% 7,439 -65%
Total Shareholders' Equity 355,334 353,713 0% 289,056 23%
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,787,401 $ 2,756,420 1% $ 2,591,399 8%
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
Quarter Ended Three Mths Quarter Ended Twelve Mths
June 30, 2013 March 31, 2013 % Change June 30, 2012 % Change
INTEREST INCOME
Interest and Fees on Loans $ 26,970 $ 26,885 0% $ 26,808 1%
Interest on Investment Securities 1,743 1,725 1% 1,560 12%
Interest on Federal Funds Sold 136 153 -11% 423 -68%
Total Interest Income 28,849 28,763 0% 28,791 0%
INTEREST EXPENSE
Deposits 2,750 2,849 -3% 4,015 -32%
FHLB Advances and Other Borrowings 345 362 -5% 532 -35%
Total Interest Expense 3,095 3,211 -4% 4,547 -32%
Net Interest Income Before Credit for Losses on Loans and Loan Commitments 25,754 25,552 1% 24,244 6%
Credit for Losses on Loans and Loan Commitments -- -- 0% (10,000) -100%
Net Interest Income After Credit for Losses on Loans and Loan Commitments 25,754 25,552 1% 34,244 -25%
NONINTEREST INCOME
Service Charges on Deposits 2,811 2,808 0% 3,238 -13%
Gain on Sales of Loans, Net 3,135 3,486 -10% 3,254 -4%
Gain on Sale/Call of Investment Securities 15 -- 0% -- 0%
Other 2,371 2,411 -2% 2,022 17%
Total Noninterest Income 8,332 8,705 -4% 8,514 -2%
NONINTEREST EXPENSES
Salaries and Employee Benefits 9,548 8,805 8% 9,038 6%
FDIC Indemnification Impairment -- -- 0% 2,000 -100%
Occupancy & Equipment 2,038 2,040 0% 1,950 5%
Data Processing 583 675 -14% 717 -19%
Other 4,913 5,764 -15% 6,663 -26%
Total Noninterest Expenses 17,082 17,284 -1% 20,368 -16%
Income Before Income Taxes 17,004 16,973 0% 22,390 -24%
Income Taxes Provision 5,465 5,384 2% 215 2442%
NET INCOME $ 11,539 $ 11,589 0% $ 22,175 -48%
Preferred Stock Cash Dividend -- -- 0% (29) -100%
Accretion of Preferred Stock Discount -- -- 0% (35) -100%
Total Preferred Stock Related Adjustment -- -- 0% (64) -100%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 11,539 $ 11,589 0% $ 22,111 -48%
PER COMMON SHARE INFORMATION:
Basic Income Per Common Share $ 0.16 $ 0.16 0% $ 0.31 -48%
Diluted Income Per Common Share $ 0.16 $ 0.16 0% $ 0.31 -48%
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic 70,944,626 71,295,673 71,285,870
Diluted 71,101,787 71,431,841 71,385,624
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
Six Months Ended Twelve Months
June 30, 2013 June 30, 2012 % Change
INTEREST INCOME
Interest and Fees on Loans $ 53,855 $ 53,929 0%
Interest on Investment Securities 3,468 3,085 12%
Interest on Federal Funds Sold 289 1,023 -72%
Total Interest Income 57,612 58,037 -1%
INTEREST EXPENSE
Deposits 5,599 8,269 -32%
FHLB Advances and Other Borrowings 707 1,085 -35%
Total Interest Expense 6,306 9,354 -33%
Net Interest Income Before Credit for Losses on Loans and Loan Commitments 51,306 48,683 5%
Credit for Losses on Loans and Loan Commitments -- (10,000) -100%
Net Interest Income After Credit for Losses on Loans and Loan Commitments 51,306 58,683 -13%
NONINTEREST INCOME
Service Charges on Deposits 5,619 6,464 -13%
Gain on Sales of Loans, Net 6,621 4,012 65%
Gain on Sale/Call of Investment Securities 15 3 400%
Other 4,782 4,422 8%
Total Noninterest Income 17,037 14,901 14%
NONINTEREST EXPENSES
Salaries and Employee Benefits 18,353 17,200 7%
FDIC Indemnification Impairment -- 2,000 -100%
Occupancy & Equipment 4,078 3,892 5%
Data Processing 1,258 1,449 -13%
Other 10,677 10,556 1%
Total Noninterest Expenses 34,366 35,097 -2%
Income Before Income Taxes 33,977 38,487 -12%
Income Taxes Provision (Benefit) 10,849 (139) N/A
NET INCOME $ 23,128 $ 38,626 -40%
Preferred Stock Cash Dividend -- (830) -100%
Accretion of Preferred Stock Discount -- (1,158) -100%
One-time Adjustment From Repurchase of Preferred Stock -- 3,389 -100%
Total Preferred Stock Related Adjustment -- 1,401 -100%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 23,128 $ 40,027 -42%
PER COMMON SHARE INFORMATION:
Basic Income Per Common Share $ 0.33 $ 0.56 -42%
Diluted Income Per Common Share $ 0.32 $ 0.56 -42%
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic 71,119,180 71,284,194
Diluted 71,262,224 71,344,150
SUMMARY OF FINANCIAL DATA
(Dollars In Thousands, Except Per Share Data) (Unaudited)
Quarter Ended
AVERAGE BALANCES June 30, 2013 March 31, 2013 June 30, 2012
Average Assets $ 2,770,996 $ 2,726,058 $ 2,570,530
Average Equity 356,287 348,071 276,021
Average Net Loans 2,113,955 2,063,649 1,877,716
Average Deposits 2,170,628 2,135,445 2,169,831
Average Time Deposits in denomination of $100,000 or more 586,136 581,213 616,612
Average FHLB & Other Borrowings 150,000 150,044 0
Average Interest Earning Assets 2,555,295 2,517,165 2,365,217
Six Months Ended
AVERAGE BALANCES June 30, 2013 June 30, 2012
Average Assets $ 2,747,399 $ 2,606,256
Average Equity 352,202 295,500
Average Net Loans 2,088,941 1,866,513
Average Deposits 2,153,134 2,174,491
Average Time Deposits in denomination of $100,000 or more 583,688 631,387
Average FHLB & Other Borrowings 150,022 10,566
Average Interest Earning Assets 2,536,335 2,393,784
Quarter Ended
PROFITABILITY June 30, 2013 March 31, 2013 June 30, 2012
Annualized Return on Average Assets 1.67% 1.70% 3.45%
Annualized Return on Average Equity 12.95% 13.32% 32.14%
Efficiency Ratio 50.11% 50.45% 62.18%
Annualized Operating Expense/Average Assets 2.47% 2.54% 3.17%
Annualized Net Interest Margin 4.06% 4.09% 4.13%
Six Months Ended
PROFITABILITY June 30, 2013 June 30, 2012
Annualized Return on Average Assets 1.68% 2.96%
Annualized Return on Average Equity 13.13% 26.14%
Efficiency Ratio 50.28% 55.20%
Annualized Operating Expense/Average Assets 2.50% 2.69%
Annualized Net Interest Margin 4.08% 4.10%
DEPOSIT COMPOSITION June 30, 2013 Cost of Funds March 31, 2013 Cost of Funds June 30, 2012 Cost of Funds
Noninterest Bearing Demand Deposits 28.6% 0.00% 27.4% 0.00% 23.6% 0.00%
Savings & Interest Checking 6.0% 1.43% 5.8% 1.51% 5.9% 2.05%
Money Market Deposits 28.6% 0.63% 28.8% 0.63% 28.5% 0.83%
Time Deposits of $100,000 or More 26.8% 0.60% 27.3% 0.64% 27.9% 0.84%
Other Time Deposits 10.0% 0.78% 10.7% 0.80% 14.0% 1.01%
Total Deposits 100.0% 0.51% 100.0% 0.53% 100.0% 0.74%
CAPITAL RATIOS June 30, 2013 March 31, 2013 June 30, 2012
Tier 1 Leverage Ratio 14.67% 14.72% 13.62%
Tier 1 Risk-Based Capital Ratio 18.73% 18.72% 18.11%
Total Risk-Based Capital Ratio 20.00% 19.99% 19.41%
Total Shareholders' Equity $ 355,334 $ 353,713 $ 289,056
Book Value Per Common Share $ 5.03 $ 4.96 $ 4.05
Tangible Common Equity Per Common Share * $ 4.92 $ 4.85 $ 3.94
Tangible Common Equity to Tangible Assets ** 12.51% 12.59% 10.88%
* Tangible common equity excludes goodwill, other intangible assets
** Tangible assets excludes goodwill and intangible assets
ALLOWANCE FOR LOAN LOSSES
(Dollars In Thousands) (Unaudited)
Quarter Ended
June 30, 2013 March 31, 2013 December 31, 2012 September 30, 2012 June 30, 2012
Balance at Beginning of Period $ 58,577 $ 63,285 $ 74,353 $ 89,134 $ 99,826
Credit for Losses on Loans -- -- (10,600) (12,000) (9,000)
Recoveries on Loans Previously Charged-off 774 881 2,532 346 1,750
Gross Loan Charge-offs (4,414) (5,589) (3,000) (3,127) (3,442)
Balance at End of Period $ 54,937 $ 58,577 $ 63,285 $ 74,353 $ 89,134
Net Loan Charge-offs/Average Total Loans 0.17% 0.23% 0.02% 0.14% 0.09%
Charge-offs/Average Total Loans 0.21% 0.27% 0.15% 0.16% 0.18%
Allowance for Loan Losses/Gross Loans * 2.62% 2.85% 3.15% 3.81% 4.54%
Allowance for Loan Losses/Legacy Wilshire Loans * 2.75% 3.01% 3.33% 4.08% 4.89%
Allowance for Loan Losses/Non-accrual Loans 206.10% 233.59% 226.40% 191.23% 214.86%
Allowance for Loan Losses/Non-performing Loans 205.13% 224.63% 226.40% 191.23% 210.18%
Allowance for Loan Losses/Non-performing Assets 197.88% 214.60% 210.73% 180.65% 190.62%
* Excluding loans held-for-sale
NON-PERFORMING ASSETS
(Dollars In Thousands, Net of SBA Guaranty Portions) Quarter Ended
(Unaudited) June 30, 2013 March 31, 2013 December 31, 2012 September 30, 2012 June 30, 2012
Non-accrual Loans $ 26,655 $ 25,077 $ 27,953 $ 38,882 $ 41,485
Loans 90 days or more past due and still accruing 126 1,000 -- -- 923
Total Non-performing Loans 26,781 26,077 27,953 38,882 42,408
Total OREO 982 1,219 2,079 2,277 4,351
Total Non-performing Assets $ 27,763 $ 27,296 $ 30,032 $ 41,159 $ 46,759
Total Non-performing Loans/Gross Loans 1.24% 1.19% 1.30% 1.86% 2.09%
Total Non-performing Assets/Total Assets 1.00% 0.99% 1.09% 1.57% 1.80%
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS Quarter Ended
(Dollars In Thousands) (Unaudited) June 30, 2013 March 31, 2013 December 31, 2012 September 30, 2012 June 30, 2012
Balance at beginning of period $ 1,023 $ 1,023 $ 2,423 $ 2,423 $ 3,423
Credit for losses on off-balance sheet items -- -- (1,400) -- (1,000)
Balance at end of period $ 1,023 $ 1,023 $ 1,023 $ 2,423 $ 2,423
Six Months Ended
June 30, 2013 June 30, 2012
Balance at beginning of period 1,023 $ 3,423
Credit for losses on off-balance sheet items -- (1,000)
Balance at end of period $ 1,023 $ 2,423
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
For the Quarter Ended
June 30, 2013 March 31, 2013 June 30, 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 $ 1,815,010 $ 22,074 4.87% $ 1,804,496 $ 22,435 4.97% $ 1,671,048 $ 22,657 5.42%
Commercial Loans 351,460 4,061 4.62% 314,389 3,630 4.62% 295,630 3,657 4.95%
Consumer Loans 11,299 75 2.66% 12,827 80 2.50% 15,283 100 2.62%
Total Gross Loans 2,177,769 26,210 4.81% 2,131,712 26,145 4.91% 1,981,961 26,414 5.33%
Loan Fees toward Yield 760 740 394
Allowance for Loan Losses & Unearned Income (63,814) (68,063) (104,245)
Net Loans 2,113,955 26,970 5.10% 2,063,649 26,885 5.21% 1,877,716 26,808 5.71%
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS:
Investment Securities* 323,502 1,743 2.39% 324,261 1,725 2.37% 291,258 1,560 2.42%
Federal Funds Sold 117,838 136 0.46% 129,255 153 0.47% 196,243 423 0.86%
Total Investment Securities and Other Earning Assets 441,340 1,879 1.87% 453,516 1,878 1.83% 487,501 1,983 1.79%
TOTAL INTEREST-EARNING ASSETS 2,555,295 28,849 4.55% $ 2,517,165 $ 28,763 4.60% $ 2,365,217 $ 28,791 4.90%
Total Non-Interest Earning Assets 215,701 208,893 205,313
TOTAL ASSETS $ 2,770,996 $ 2,726,058 $ 2,570,530
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money Market $ 617,837 $ 971 0.63% $ 623,471 $ 976 0.63% $ 612,223 $ 1,267 0.83%
NOW 27,915 14 0.20% 25,958 12 0.19% 25,747 22 0.34%
Savings 101,263 447 1.77% 100,560 464 1.85% 102,348 633 2.47%
Time Deposits of $100,000 or More 586,136 884 0.60% 581,213 924 0.64% 616,612 1,293 0.84%
Other Time Deposits 223,256 434 0.78% 235,862 473 0.80% 318,400 800 1.01%
Total Interest Bearing Deposits 1,556,407 2,750 0.71% 1,567,064 2,849 0.73% 1,675,330 4,015 0.96%
BORROWINGS:
FHLB Advances and Other Borrowings 150,000 64 0.17% 150,044 80 0.21% 0 0 0.00%
Junior Subordinated Debentures 61,857 281 1.82% 61,857 282 1.82% 87,321 532 2.44%
Total Borrowings 211,857 345 0.65% 211,901 362 0.68% 87,321 532 2.44%
TOTAL INTEREST BEARING LIABILITIES $ 1,768,264 $ 3,095 0.70% $ 1,778,965 $ 3,211 0.72% $ 1,762,651 $ 4,547 1.03%
Non-Interest Bearing Deposits 614,221 568,381 494,501
Other Liabilities 32,224 30,641 37,357
Shareholders' Equity 356,287 348,071 276,021
TOTAL LIABILITIES AND EQUITY $ 2,770,996 $ 2,726,058 $ 2,570,530
NET INTEREST INCOME $ 25,754 $ 25,552 $ 24,244
.
NET INTEREST SPREAD 3.85% 3.88% 3.87%
NET INTEREST MARGIN 4.06% 4.09% 4.13%
* 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 Six Months Ended
June 30, 2013 June 30, 2012
Average Interest Average Average Interest Average
Balance Income/ Yield/ Balance Income/ Yield/
INTEREST EARNING ASSETS Expense Rate Expense Rate
LOANS:
Real Estate Loans $ 1,795,057 $ 44,176 4.92% $ 1,668,133 $ 45,571 5.46%
Commercial Loans 347,752 8,024 4.62% 288,695 7,054 4.89%
Consumer Loans 12,059 155 2.57% 15,511 205 2.64%
Total Gross Loans 2,154,868 52,355 4.86% 1,972,339 52,830 5.36%
Loan Fees toward Yield 1,500 1,099
Allowance for Loan Losses & Unearned Income (65,927) (105,826)
Net Loans 2,088,941 53,855 5.16% 1,866,513 53,929 5.78%
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS:
Investment Securities* 323,879 3,468 2.38% 299,872 3,085 2.34%
Federal Funds Sold 123,515 289 0.47% 227,399 1,023 0.90%
Total Investment Securities and Other Earning Assets 447,394 3,757 1.85% 527,271 4,108 1.72%
TOTAL INTEREST-EARNING ASSETS $ 2,536,335 $ 57,612 4.57% $ 2,393,784 $ 58,037 4.88%
Total Non-Interest Earnings Assets 211,064 212,472
TOTAL ASSETS $ 2,747,399 $ 2,606,256
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money Market $ 620,639 $ 1,947 0.63% $ 597,967 $ 2,490 0.83%
NOW 26,941 26 0.19% 24,981 41 0.33%
Savings 100,914 912 1.81% 101,656 1,308 2.57%
Time Deposits of $100,000 or More 583,688 1,808 0.62% 631,387 2,740 0.87%
Other Time Deposits 229,524 906 0.79% 329,683 1,690 1.03%
Total Interest Bearing Deposits 1,561,706 5,599 0.72% 1,685,674 8,269 0.98%
BORROWINGS:
FHLB Advances and Other Borrowings 150,022 143 0.19% 10,566 6 0.11%
Junior Subordinated Debentures 61,857 564 1.82% 87,321 1,079 2.47%
Total Borrowings 211,879 707 0.67% 97,887 1,085 2.22%
TOTAL INTEREST BEARING LIABILITIES $ 1,773,585 $ 6,306 0.71% $ 1,783,561 $ 9,354 1.05%
Non-Interest Bearing Deposits 591,428 488,817
Other Liabilities 30,184 38,378
Shareholders' Equity 352,202 295,500
TOTAL LIABILITIES AND EQUITY $ 2,747,399 $ 2,606,256
NET INTEREST INCOME $ 51,306 $ 48,683
NET INTEREST SPREAD 3.86% 3.84%
NET INTEREST MARGIN 4.08% 4.10%
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
June 30, 2013 March 31, 2013 June 30, 2012
Total shareholders' equity $ 355,334 $ 353,713 $ 289,056
Goodwill and other intangible assets, net (7,572) (7,642) (7,854)
Tangible common equity $ 347,762 $ 346,071 $ 281,202
Total assets $ 2,787,401 $ 2,756,420 $ 2,591,399
Goodwill and other intangible assets, net (7,572) (7,642) (7,854)
Tangible assets $ 2,779,829 $ 2,748,778 $ 2,583,545
Common shares outstanding 70,697,944 71,296,956 71,287,518
PRE-TAX, PRE-PROVISION INCOME (PTPP) *
(Dollars In Thousands) (Unaudited)
Quarter Ended
June 30, 2013 March 31, 2013 June 30, 2012
Net Income $ 11,539 $ 11,589 $ 22,111
Add Back - Income Tax Provision 5,465 5,384 215
Add Back - Credit for Losses on Loans and Loan Commitments -- -- (10,000)
Pre-tax, Pre-Provision Income (PTPP) $ 17,004 $ 16,973 $ 12,326
PTPP to Average Assets (Annualized) 2.45% 2.49% 1.92%
Six Months Ended
June 30, 2013 June 30, 2012
Net Income $ 23,128 $ 38,626
Add Back - Income Tax Provision (Benefit) 10,849 (139)
Add Back - Credit for Losses on Loans and Loan Commitments -- (10,000)
Pre-tax, Pre-Provision Income (PTPP) $ 33,977 $ 28,487
PTPP to Average Assets (Annualized) 2.47% 2.19%
* 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.