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Wilshire Bancorp Reports Net Income of $15.6 Million or $0.20 Per Share for Second Quarter 2015

20:00 EDT 19 Jul 2015 | Globe Newswire

LOS ANGELES, July 20, 2015 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (NASDAQ:WIBC) (the "Company"), the holding company for Wilshire Bank (the "Bank"), today reported net income of $15.6 million, or $0.20 per diluted common share, for the quarter ended June 30, 2015. This compares to net income of $14.7 million, or $0.19 per diluted common share, for the same period of the prior year, and net income of $18.6 million, or $0.24 per diluted common share, for the first quarter of 2015.

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "We continued to generate a high level of profitability by focusing on our core competencies, delivering outstanding service to our customers, and maintaining stable credit quality. Our profitability enabled us to increase our quarterly cash dividend paid on July 15, 2015 by 20% to $0.06 per share while still maintaining sufficient capital to support organic and external growth strategies.

"We are making good progress in integrating and ramping-up our expanded residential mortgage lending group, which generated $90 million in loan production during the second quarter. We had a solid quarter of loan production across our other major lending areas and continue to maintain a healthy pipeline of quality lending opportunities," said Mr. Yoo.

Q2 2015 Summary

  • Net income totaled $15.6 million, or $0.20 per diluted common share, for the second quarter of 2015
  • Total net revenue of $48.8 million for the second quarter of 2015, an increase of 4.0% from the second quarter of 2014
  • Return on average assets of 1.39% and return on average equity of 12.12% for the second quarter of 2015
  • Net interest margin of 3.59% for the second quarter of 2015, a decrease from 3.69% for the first quarter of 2015
  • Loans receivable (net of deferred fees and costs) totaled $3.52 billion at June 30, 2015, an increase of 19% from $2.97 billion at June 30, 2014
  • Total deposits were $3.90 billion at June 30, 2015, an increase of 32% from $2.96 billion at June 30, 2014
  • Demand deposits totaled $1.03 billion at June 30, 2015, an increase of 8% from $945.0 million at June 30, 2014
  • Continued stability in asset quality resulted in no provision for losses on loans and loan commitments for the second quarter of 2015

STATEMENT OF OPERATIONS

Net interest income before provision for losses on loans and loan commitments totaled $37.5 million for the second quarter of 2015, an increase of 3.7% from $36.1 million for the second quarter of 2014, and an increase of 2.7% from $36.5 million for the first quarter of 2015. The increase in net interest income for the second quarter of 2015 compared to the prior quarters is primarily attributable to an increase in average total loans.

Net interest margin was 3.59% for the second quarter of 2015, compared to 3.69% for the first quarter of 2015, and 4.35% for the second quarter of 2014. The decline in net interest margin from the prior quarter was primarily attributable to an increase in average cash and cash equivalents. During the second quarter of 2015, growth in total deposits resulted in an increase in cash held at the Federal Reserve Bank yielding 25 basis points. A portion of the resulting excess liquidity was utilized to purchase investment securities during the second quarter and to payoff overnight FHLB borrowings.

Loan yields were 4.78% for the second quarter of 2015, unchanged from the first quarter of 2015 and down from 5.20% for the second quarter of 2014.

The total cost of deposits was 0.61% for the second quarter of 2015, compared to 0.58% for the first quarter of 2015, and 0.48% for the second quarter of 2014. Compared to the first quarter of 2015, the increase in the cost of deposits for the second quarter of 2015 was primarily due to an increase in rates paid on time deposit accounts.

Non-Interest Income

Total non-interest income was $11.3 million for the second quarter of 2015, compared to $15.3 million for the first quarter of 2015, and $10.7 million for the second quarter of 2014.

The Company recognized $4.2 million in net gain on sales of loans during the second quarter of 2015, compared to $6.8 million for the first quarter of 2015, and $4.7 million for the second quarter of 2014. The decline in net gain on sale of loans for the second quarter of 2015, compared to the previous quarter was due to a decline in gains from the sale of non-performing loans.

Other non-interest income totaled $4.0 million for the second quarter of 2015, compared to $5.4 million for the first quarter of 2015, and $2.9 million for the second quarter of 2014. The decrease from the first to second quarter of 2015 was primarily due to a decline in income from the change in value of servicing assets from $1.6 million for the first quarter of 2015 to $108,000 for the second quarter of 2015.

Non-Interest Expense

Total non-interest expense was $24.7 million for the second quarter of 2015, compared with $22.9 million for the first quarter of 2015, and $24.6 million for the second quarter of 2014. The increase in non-interest expense from the prior quarter was primarily due to an increase in salaries and benefits and other non-interest expenses.

Total salaries and employee benefits expense was $14.2 million for the second quarter of 2015, compared with $12.7 million for the first quarter of 2015, and $12.5 million for the second quarter of 2014. The increase in salaries and employee benefits for the second quarter of 2015 compared to the first quarter of 2015 was largely due to the full quarter impact of the addition of former Bank of Manhattan Mortgage Division employees.

Other non-interest expense for the second quarter of 2015 totaled $6.2 million, compared to $5.8 million for the first quarter of 2015, and $7.1 million for the second quarter of 2014. The increase in other non-interest expense from the first quarter of 2015 was attributable to an increase in other loan expenses and OREO-related expenses.

The Company's operating efficiency ratio was 50.56% for the second quarter of 2015, compared with 44.26% for the first quarter of 2015, and 52.38% for the second quarter of 2014.

BALANCE SHEET

Total loans receivable (net of deferred fees and costs) were $3.52 billion at June 30, 2015, compared to $3.51 billion at March 31, 2015. The increase in loans during the second quarter of 2015 was primarily driven by growth in residential real estate loans.

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

  Quarter Ended
(Dollars In Thousands) (Unaudited) June 30, 2015 March 31, 2015 December 31, 2014 September 30, 2014 June 30, 2014
           
Construction $16,050 $26,117 $21,248 $40,062 $43,292
Real Estate Secured 2,723,458 2,701,800 2,655,251 2,593,242 2,481,801
Commercial & Industrial 765,655 769,438 610,762 515,831 431,758
Consumer 14,622 15,465 21,036 12,810 13,044
Total Loans Receivable * 3,519,785 3,512,820 3,308,297 3,161,945 2,969,895
Loans Held-For-Sale 25,269 10,204 11,783 16,236 6,207
Total Loans * $3,545,054 $3,523,024 $3,320,080 $3,178,181 $2,976,102
           
* 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) June 30, 2015 March 31, 2015 December 31, 2014 September 30, 2014 June 30, 2014
                     
Real Estate Secured $121,066 41% $138,145 35% $184,477 56% $191,272 48% $170,042 60%
Commercial & Industrial 46,438 16% 59,837 15% 73,194 22% 89,166 22% 31,058 11%
Consumer 124 0% 1,640 0% 3,385 1% 6,560 2% 1,580 1%
SBA 25,648 9% 31,718 8% 34,747 11% 41,373 10% 37,004 13%
Residential Mortgage 89,652 31% 11,357 3% 8,632 4% 20,791 5% 9,325 3%
Warehouse Lines of Credit* 10,000 3% 155,000 39% 23,000 6% 50,000 13% 33,000 12%
Total Loan Originations $292,928 100% $397,697 100% $327,435 100% $399,162 100% $282,009 100%
                     
* Warehouse lines of credit are reported as commercial and industrial loans on the consolidated balance sheet.
                     

Originations for the second quarter of 2015 totaled $292.9 million, compared to $397.7 million for the first quarter of 2015, and $282.0 million for the second quarter of 2014. The decline in loan origination for the three months ended June 30, 2015, compared to the three months ended March 31, 2015, was due to a decrease in warehouse lending originations offset by an increase in residential mortgage loan originations.

Total SBA loans held-for-sale at the end of the second quarter of 2015 were $5.9 million, compared to $7.7 million at the end of the previous quarter. The decision to retain or sell SBA loans is made on a quarter-to-quarter basis, depending on prevailing pricing in the secondary market and the Company's liquidity needs.

Total deposits were $3.90 billion at June 30, 2015, compared with $3.64 billion at March 31, 2015. The increase in total deposits was attributable to growth in all deposits categories except for savings and interest checking deposits.

CREDIT QUALITY

During the second quarter of 2015, the Company continued to experience general stability in asset quality and a low level of charge-offs. The allowance for loan losses totaled $48.8 million, or 1.38% of gross loans (excluding loans held-for-sale), at June 30, 2015, compared to $48.2 million, or 1.37% of gross loans (excluding loans held-for-sale), at March 31, 2015. The coverage ratio of the allowance for loan losses to non-performing assets was 130.50% at June 30, 2015, compared with 120.63% at March 31, 2015.

Non-Performing Loans

At June 30, 2015, total non-performing loans were $30.9 million, or 0.87% of total gross loans, compared to $32.5 million, or 0.92% of total gross loans, at March 31, 2015.

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

NON-PERFORMING LOANS Quarter Ended
(Dollars In Thousands) (Unaudited) Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014
(Net of SBA Guaranty Portions)          
Real Estate Secured $23,235 $25,329 $29,547 $37,205 $35,585
Commercial & Industrial 7,617 7,193 7,718 7,699 6,769
Consumer -- -- -- 1 4
Total Non-Performing Loans $30,852 $32,522 $37,265 $44,905 $42,358
           

Net Charge-offs/Recoveries

During the second quarter of 2015, the Company had total gross charge-offs of $559,000, and recoveries of $1.2 million, which resulted in total net recoveries of $651,000 compared to net charge-offs of $454,000 for the first 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) Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014
           
Real Estate Secured $249 $325 $5,461 $1,161 $782
Commercial & Industrial 310 999 852 614 1,021
Consumer -- -- -- -- --
Total Loan Charge-Offs $559 $1,324 $6,313 $1,775 $1,803
           
           
LOAN RECOVERIES Quarter Ended
(Dollars In Thousands) (Unaudited) Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014
           
Real Estate Secured $970 $193 $199 $1,688 $586
Commercial & Industrial 240 667 1,620 534 408
Consumer -- 10 2 -- 14
Total Loan Recoveries $1,210 $870 $1,821 $2,222 $1,008
           

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

DELINQUENT LOANS -- By Days Past Due Quarter Ended
(Dollars In Thousands) (Unaudited) Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014
(Net of SBA Guaranty Portions)          
30 - 59 Days Past Due $3,615 $7,375 $5,165 $4,137 $4,556
60 - 89 Days Past Due 7,576 421 1,820 4,002 2,992
90 Days, and still accruing -- -- -- -- --
Total Delinquent Loans $11,191 $7,796 $6,985 $8,139 $7,548
           
           
TROUBLED DEBT RESTRUCTURED LOANS ("TDR") Quarter Ended
(Dollars In Thousands) (Unaudited) Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014
(Net of SBA Guaranty Portions)          
Real Estate Secured $29,424 $28,612 $25,096 $31,313 $33,349
Commercial & Industrial 13,469 11,682 12,014 11,425 5,542
Total TDR Loans $42,893 $40,294 $37,110 $42,738 $38,891
           
           
LOAN CLASSIFICATIONS Quarter Ended
(Dollars In Thousands) (Unaudited) Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014
(Net of SBA Guaranty Portions)          
Special Mention $86,118 $81,049 $76,906 $62,929 $88,382
Substandard 96,666 89,402 82,305 94,854 110,462
Doubtful 5,301 9,822 11,952 15,291 18,040
Total Criticized and Classified Loans $188,085 $180,273 $171,163 $173,074 $216,884
           
Total Classified Loans $101,967 $99,224 $94,257 $110,145 $128,502
           

CAPITAL RATIOS

As of June 30, 2015, all of the Company's capital ratios remain in excess of "well capitalized" regulatory requirements as shown in the following table: 

    Well Capitalized Total Excess Above Well
(Dollars In Thousands, Except Per Share Info) June 30, 2015 Regulatory Requirements Capitalized Requirements
Tier 1 Leverage Capital Ratio 11.64% 5.00% $291,865
Tier 1 Common Equity Risk-Based Capital Ratio 11.91% 6.50% 200,923
Tier 1 Risk-Based Capital Ratio 13.78% 8.00% 214,652
Total Risk-Based Capital Ratio 15.03% 10.00% 186,850
Tangible Common Equity To Tangible Assets * 9.83% N/A N/A
Tangible Common Equity Per Common Share * $5.66 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 July 21, 2015, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing toll-free 800-798-2864 (domestic) or 617-614-6206 (international) and providing passcode number 49176774.

ABOUT WILSHIRE BANCORP

Headquartered in Los Angeles, Wilshire Bancorp is the parent company of Wilshire Bank, which operates 34 branch offices in California, Texas, Georgia, New Jersey, and New York. Wilshire Bancorp also operates six loan production offices of which four are utilized primarily for the origination of loans under the Small Business Administration lending program located in California, Colorado, Georgia, and Washington, and two that are utilized primarily for the origination of residential mortgage loans located in California. Wilshire Bank is a community bank with a focus on commercial real estate lending and general commercial banking, with its primary market encompassing the multi-ethnic populations of the Los Angeles Metropolitan area. For more information, please go to www.wilshirebank.com.

FORWARD-LOOKING STATEMENTS

Statements concerning future performance, events, or any other guidance on future periods constitute forward-looking statements that are subject to a number of risks and uncertainties that might cause actual results to differ materially from stated expectations. Undue reliance should not be placed on forward-looking statements, as they are subject to risks and uncertainties, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K and our other reports filed with or furnished to the Securities and Exchange Commission. Specific factors that could cause future results to differ materially from historical performance and these forward-looking statements include, but are not limited to: (1) loan production and sales, (2) credit quality, (3) the ability to expand net interest margin, (4) the ability to continue to attract low-cost deposits, (5) success of expansion efforts, (6) competition in the marketplace, (7) political developments, war or other hostilities, (8) changes in the interest rate environment, (9) the ability of our borrowers to repay their loans, (10) the ability to maintain capital requirements and adequate sources of liquidity, (11) effects of or changes in accounting policies, (12) legislative or regulatory changes or actions, (13) the ability to attract and retain key personnel, (14) the ability to receive dividends from our subsidiaries, (15) the ability to secure confidential information through the use of computer systems and telecommunications networks, (16) weakening in the economy, specifically the real estate market, either nationally or in the states in which we do business, (17) the integration of our acquired businesses, and (18) general economic conditions. The information in this press release speaks only as of the date of this release and Wilshire Bancorp specifically disclaims any duty to update the information in this press release, expect as required by applicable law. Additional information on these and other factors that could affect financial results are included in filings by Wilshire Bancorp with the Securities and Exchange Commission.

CONSOLIDATED BALANCE SHEET
(Dollars In Thousands) (Unaudited) June 30, March 31, Three Months June 30, Twelve Months
  2015 2015 % Change 2014 % Change
ASSETS:          
Cash and due from banks $475,834 $353,438 35% $155,799 205%
Federal funds sold and other cash equivalents 54 164 -67% 927 -94%
Total Cash and Cash Equivalents 475,888 353,602 35% 156,726 204%
           
Deposits held in other financial institutions 7,750 8,000 -3% 20,509 -62%
           
Investment securities available for sale 358,331 329,343 9% 327,239 10%
Investment securities held to maturity 24 25 -4% 30 -20%
Total Investment Securities 358,355 329,368 9% 327,269 9%
           
Total Loans Held-For-Sale 25,269 10,204 148% 6,207 307%
           
Real estate construction 16,050 26,117 -39% 43,292 -63%
Residential real estate 192,732 171,117 13% 167,055 15%
Commercial real estate 2,530,726 2,530,683 0% 2,314,746 9%
Commercial and industrial 765,655 769,438 0% 431,758 77%
Consumer 14,622 15,465 -5% 13,044 12%
Total loans receivable, net of deferred fees and costs 3,519,785 3,512,820 0% 2,969,895 19%
Allowance for loan losses (48,821) (48,170) 1% (52,669) -7%
Loans Receivable, Net of Allowance for Loan Losses 3,470,964 3,464,650 0% 2,917,226 19%
           
Accrued interest receivable 8,635 8,581 1% 8,032 8%
Due from customers on acceptances 3,940 6,472 -39% 3,090 28%
Other real estate owned 6,559 7,411 -11% 6,676 -2%
Premises and equipment 14,366 14,058 2% 12,925 11%
Federal home loan bank (FHLB) stock, at cost 16,539 16,539 0% 16,989 -3%
Cash surrender value of life insurance 23,610 23,470 1% 22,803 4%
Investment in affordable housing partnerships 42,193 43,134 -2% 41,112 3%
Deferred income taxes 17,475 16,646 5% 32,459 -46%
Servicing assets 20,123 19,813 2% 18,168 11%
Goodwill 67,473 67,473 0% 67,528 0%
FDIC indemnification asset -- -- 0% 267 -100%
Other assets 31,958 23,857 34% 23,275 37%
TOTAL ASSETS $4,591,097 $4,413,278 4% $3,681,261 25%
           
LIABILITIES AND SHAREHOLDERS' EQUITY:          
Non-interest bearing demand deposits $1,025,133 $997,803 3% $945,010 8%
Savings and interest checking 158,734 161,234 -2% 160,155 -1%
Money market deposits 962,855 886,092 9% 758,833 27%
Time deposits in denomination of $100,000 or more 1,475,340 1,322,743 12% 856,681 72%
Other time deposits 280,894 267,294 5% 235,335 19%
Total Deposits 3,902,956 3,635,166 7% 2,956,014 32%
           
FHLB borrowings 50,000 150,000 -67% 150,260 -67%
Acceptance outstanding 3,940 6,472 -39% 3,090 28%
Junior subordinated debentures 71,895 71,837 0% 71,665 0%
Accrued interest payable 2,373 2,406 -1% 2,349 1%
Other liabilities 44,350 41,818 6% 33,114 34%
Total Liabilities 4,075,514 3,907,699 4% 3,216,492 27%
           
Common stock 232,893 232,207 0% 231,368 1%
Retained earnings 278,503 267,660 4% 229,556 21%
Accumulated other comprehensive income 4,187 5,712 -27% 3,845 9%
Total Shareholders' Equity 515,583 505,579 2% 464,769 11%
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $4,591,097 $4,413,278 4% $3,681,261 25%
           
           
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
  Quarter Ended Three Mths Quarter Ended Twelve Mths
  June 30, 2015 March 31, 2015 % Change March 31, 2014 % Change
           
INTEREST INCOME          
Interest and fees on loans $41,599 $40,088 4% $37,993 9%
Interest on investment securities 1,929 1,968 -2% 2,023 -5%
Interest on federal funds sold and others 264 192 38% 92 187%
Total Interest Income 43,792 42,248 4% 40,108 9%
           
INTEREST EXPENSE          
Deposits 5,661 5,097 11% 3,486 62%
FHLB advances and other borrowings 658 660 0% 493 33%
Total Interest Expense 6,319 5,757 10% 3,979 59%
           
Net interest income before provision for losses on loans and loan commitments 37,473 36,491 3% 36,129 4%
Provision for losses on loans and loan commitments -- -- 0% -- 0%
           
Net interest income after provision for losses on loans and loan commitments 37,473 36,491 3% 36,129 4%
           
NONINTEREST INCOME          
Service charges on deposits 3,159 3,107 2% 3,174 0%
Gain on sales of loans, net 4,184 6,806 -39% 4,687 -11%
Gain on sale/call of investment securities -- -- 0% -- 0%
Other 3,971 5,354 -26% 2,883 38%
Total Noninterest Income 11,314 15,267 -26% 10,744 5%
           
NONINTEREST EXPENSES          
Salaries and employee benefits 14,164 12,665 12% 12,449 14%
FDIC indemnification impairment -- -- 0% 597 -100%
Occupancy and equipment 3,196 3,373 -5% 3,444 -7%
Data processing 1,089 1,042 5% 795 37%
Merger related costs -- -- 0% 213 -100%
Other 6,218 5,829 7% 7,052 -12%
Total Noninterest Expenses 24,667 22,909 8% 24,550 0%
           
Income before income taxes 24,120 28,849 -16% 22,323 8%
Income taxes provision 8,567 10,230 -16% 7,659 12%
NET INCOME $15,553 $18,619 -16% $14,664 6%
           
PER COMMON SHARE INFORMATION:          
Basic income per common share $0.20 $0.24 -17% $0.19 6%
Diluted income per common share $0.20 $0.24 -17% $0.19 6%
           
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:          
Basic 78,459,708 78,326,505   78,267,128  
Diluted 78,818,847 78,655,365   78,613,468  
           
           
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
       
  Six Months Ended Twelve Months
  June 30, 2015 June 30, 2014 % Change
       
INTEREST INCOME      
Interest and fees on loans $81,687 $75,094 9%
Interest on investment securities 3,897 4,124 -6%
Interest on federal funds sold and others 456 243 88%
Total Interest Income 86,040 79,461 8%
       
INTEREST EXPENSE      
Deposits 10,758 7,162 50%
FHLB advances and other borrowings 1,318 997 32%
Total Interest Expense 12,076 8,159 48%
       
Net interest income before provision for losses on loans and loan commitments 73,964 71,302 4%
Provision for losses on loans and loan commitments -- -- 0%
       
Net interest income after provision for losses on loans and loan commitments 73,964 71,302 4%
       
NONINTEREST INCOME      
Service charges on deposits 6,266 6,320 -1%
Gain on sales of loans, net 10,990 9,016 22%
Gain on sale/call of investment securities -- -- 0%
Other 9,325 6,394 46%
Total Noninterest Income 26,581 21,730 22%
       
NONINTEREST EXPENSES      
Salaries and employee benefits 26,829 25,104 7%
FDIC indemnification impairment -- 597 -100%
Occupancy and equipment 6,569 6,753 -3%
Data processing 2,131 1,758 21%
Merger related costs -- 3,577 -100%
Other 12,047 13,018 -7%
Total Noninterest Expenses 47,576 50,807 -6%
       
Income before income taxes 52,969 42,225 25%
Income taxes provision 18,797 14,448 30%
NET INCOME $34,172 $27,777 23%
       
PER COMMON SHARE INFORMATION:      
Basic income per common share $0.44 $0.36 23%
Diluted income per common share $0.43 $0.35 23%
       
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:      
Basic 78,393,475 78,191,872  
Diluted 78,736,870 78,554,947  
       
       
SUMMARY OF FINANCIAL DATA  
(Dollars In Thousands, Except Per Share Data) (Unaudited)  
             
  Quarter Ended  
AVERAGE BALANCES June 30, 2015   March 31, 2015   June 30, 2014  
Average Assets $4,472,065   $4,255,625   $3,614,014  
Average Equity 513,338   500,097   459,423  
Average Net Loans 3,481,181   3,352,433   2,923,225  
Average Deposits 3,736,003   3,490,282   2,896,815  
Average Time Deposits of $100,000 or more 1,417,860   1,297,961   865,110  
Average FHLB & Other Borrowings 112,088   150,655   150,280  
Average Interest Earning Assets 4,197,297   3,976,435   3,337,010  
             
  Six Months Ended  
AVERAGE BALANCES June 30, 2015       June 30, 2014  
Average Assets $4,364,443       $3,619,793  
Average Equity 506,754       453,495  
Average Net Loans 3,417,163       2,901,713  
Average Deposits 3,613,821       2,885,642  
Average Time Deposits of $100,000 or more 1,358,242       868,318  
Average FHLB & Other Borrowings 131,265       171,727  
Average Interest Earning Assets 4,087,478       3,341,003  
             
  Quarter Ended  
PROFITABILITY June 30, 2015   March 31, 2015   June 30, 2014  
Annualized Return on Average Assets 1.39%   1.75%   1.62%  
Annualized Return on Average Equity 12.12%   14.89%   12.77%  
Efficiency Ratio 50.56%   44.26%   52.38%  
Annualized Operating Expense/Average Assets 2.21%   2.15%   2.72%  
Annualized Net Interest Margin 3.59%   3.69%   4.35%  
             
  Six Months Ended  
PROFITABILITY June 30, 2015       June 30, 2014  
Annualized Return on Average Assets 1.57%       1.53%  
Annualized Return on Average Equity 13.49%       12.25%  
Efficiency Ratio 47.32%       54.61%  
Annualized Operating Expense/Average Assets 2.18%       2.81%  
Annualized Net Interest Margin 3.64%       4.29%  
             
  As Of
    Cost of   Cost of   Cost of
DEPOSIT COMPOSITION June 30, 2015 Funds March 31, 2015 Funds June 30, 2014 Funds
Noninterest Bearing Demand Deposits 26.3% 0.00% 27.4% 0.00% 32.0% 0.00%
Savings & Interest Checking 4.1% 1.30% 4.4% 1.31% 5.4% 1.19%
Money Market Deposits 24.7% 0.66% 24.4% 0.67% 25.7% 0.66%
Time Deposits of $100,000 or More 37.8% 0.86% 36.4% 0.80% 29.0% 0.60%
Other Time Deposits 7.2% 0.90% 7.4% 0.86% 8.0% 0.77%
Total Deposits 100.0% 0.61% 100.0% 0.58% 100.0% 0.48%
             
  As Of  
CAPITAL RATIOS June 30, 2015   March 31, 2015   June 30, 2014  
Tier 1 Leverage Ratio 11.64%   11.86%   12.89%  
Tier 1 Common Equity Risk-Based Capital Ratio 11.91%   11.58%   N/A  
Tier 1 Risk-Based Capital Ratio 13.78%   13.38%   15.05%  
Total Risk-Based Capital Ratio 15.03%   14.64%   16.31%  
Total Shareholders' Equity $515,583   $505,579   $464,769  
Book Value Per Common Share $6.57   $6.45   $5.94  
Tangible Common Equity Per Common Share * $5.66   $5.54   $5.02  
Tangible Common Equity to Tangible Assets * 9.83%   10.00%   10.88%  
             
* Excludes goodwill and other intangible assets
             
             
ALLOWANCE FOR LOAN LOSSES
(Dollars In Thousands) (Unaudited)
  Quarter Ended
  June 30, 2015 March 31, 2015 December 31, 2014 September 30, 2014 June 30, 2014
           
Balance at Beginning of Period $48,170 $48,624 $53,116 $52,669 $53,464
Provision for Losses on Loans -- -- -- -- --
Recoveries on Loans Previously Charged-off 1,210 870 1,821 2,222 1,008
Gross Loan Charge-offs (559) (1,324) (6,313) (1,775) (1,803)
Balance at End of Period $48,821 $48,170 $48,624 $53,116 $52,669
           
Net Loan Charge-offs/Average Net Loans -0.02% 0.01% 0.14% -0.01% 0.03%
Charge-offs/Average Total Loans 0.02% 0.04% 0.20% 0.06% 0.06%
Allowance for Loan Losses/Gross Loans* 1.38% 1.37% 1.47% 1.67% 1.77%
Allowance for Loan Losses/Non-accrual Loans 158.24% 148.12% 130.48% 118.29% 124.34%
Allowance for Loan Losses/Non-performing Loans 158.24% 148.12% 130.48% 118.29% 124.34%
Allowance for Loan Losses/Non-performing Assets 130.50% 120.63% 107.61% 103.20% 107.41%
Allowance for Loan Losses/Classified Loans 47.88% 48.55% 51.59% 48.22% 34.01%
           
* Excluding held-for-sale loans
           
NON-PERFORMING ASSETS
(Dollars In Thousands, Net of SBA Guaranty) Quarter Ended
(Unaudited) June 30, 2015 March 31, 2015 December 31, 2014 September 30, 2014 June 30, 2014
           
Non-accrual Loans $30,852 $32,522 $37,265 $44,905 $42,358
Loans 90 days or more past due and still accruing -- -- -- -- --
Total Non-performing Loans 30,852 32,522 37,265 44,905 42,358
           
Total OREO 6,559 7,411 7,922 6,565 6,676
Total Non-performing Assets $37,411 $39,933 $45,187 $51,470 $49,034
           
Total Non-performing Loans/Gross Loans 0.87% 0.92% 1.12% 1.41% 1.42%
Total Non-performing Assets/Total Assets 0.81% 0.90% 1.09% 1.31% 1.33%
           
           
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS
(Dollars In Thousands) (Unaudited) Quarter Ended    
  June 30, 2015 March 31, 2015 June 30, 2014    
           
Balance at beginning of period $1,023 $1,023 $1,023    
Provision for losses on off-balance sheet items -- -- --    
Balance at end of period $1,023 $1,023 $1,023    
           
           
  Six Months Ended      
  June 30, 2015 June 30, 2014      
           
Balance at beginning of period $1,023 $1,023      
Credit for losses on off-balance sheet items -- --      
Balance at end of period $1,023 $1,023      
           
           
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
  For the Quarter Ended
  June 30, 2015 March 31, 2015 June 30, 2014
  Average Interest Average Average Interest Average Average Interest Average
INTEREST EARNING ASSETS Balance Income/ Yield/ Balance Income/ Yield/ Balance Income/ Yield/
    Expense Rate   Expense Rate   Expense Rate
                   
LOANS:                  
Real Estate Loans $2,767,138 $33,410 4.83% $2,732,436 $32,565 4.77% $2,497,372 $31,753 5.09%
Commercial Loans 709,662 6,947 3.92% 616,848 6,282 4.07% 421,163 5,120 4.86%
Consumer Loans 14,413 124 3.44% 13,141 116 3.53% 13,426 133 3.96%
Total Gross Loans 3,491,213 40,481 4.64% 3,362,425 38,963 4.64% 2,931,961 37,006 5.05%
Deferred Fees and Costs \ Loan Fees (10,032) 1,118   (9,992) 1,125   (8,736) 987  
Total Loans * 3,481,181 41,599 4.78% 3,352,433 40,088 4.78% 2,923,225 37,993 5.20%
                   
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS:                  
Investment Securities** 339,876 1,929 2.47% 359,302 1,968 2.38% 338,060 2,023 2.60%
Deposits Held In Other Institutions 7,986 32 1.60% 8,000 32 1.60% 20,539 70 1.36%
Federal Funds Sold & Others 368,254 232 0.25% 256,700 160 0.25% 55,186 22 0.16%
Total Investment Securities and Other Earning Assets 716,116 2,193 1.32% 624,002 2,160 1.49% 413,785 2,115 2.21%
                   
TOTAL INTEREST-EARNING ASSETS $4,197,297 $43,792 4.19% $3,976,435 $42,248 4.27% $3,337,010 $40,108 4.83%
                   
Total Non-Interest Earning Assets 274,768     279,190     277,004    
TOTAL ASSETS $4,472,065     $4,255,625     $3,614,014    
                   
INTEREST BEARING LIABILITIES
                   
INTEREST-BEARING DEPOSITS:                  
Money Market $891,494 $1,464 0.66% $844,576 $1,406 0.67% $770,512 $1,276 0.66%
NOW 28,704 20 0.28% 29,230 17 0.23% 34,812 16 0.18%
Savings 129,805 494 1.52% 129,239 502 1.55% 120,274 445 1.48%
Time Deposits of $100,000 or More 1,417,860 3,061 0.86% 1,297,961 2,603 0.80% 865,110 1,296 0.60%
Other Time Deposits 276,973 622 0.90% 265,626 569 0.86% 235,907 453 0.77%
Total Interest Bearing Deposits 2,744,836 5,661 0.83% 2,566,632 5,097 0.79% 2,026,615 3,486 0.69%
                   
BORROWINGS:                  
FHLB Advances and Other Borrowings 112,088 220 0.79% 150,655 232 0.62% 150,280 67 0.18%
Junior Subordinated Debentures 71,858 438 2.44% 71,799 428 2.38% 71,631 426 2.38%
Total Borrowings 183,946 658 1.43% 222,454 660 1.19% 221,911 493 0.89%
                   
TOTAL INTEREST BEARING LIABILITIES $2,928,782 $6,319 0.86% $2,789,086 $5,757 0.83% $2,248,526 $3,979 0.71%
                   
Non-Interest Bearing Deposits 991,167     923,650     870,200    
Other Liabilities 38,778     42,792     35,865    
Shareholders' Equity 513,338     500,097     459,423    
TOTAL LIABILITIES AND EQUITY $4,472,065     $4,255,625     $3,614,014    
                   
NET INTEREST INCOME   $37,473     $36,491     $36,129  
.                  
NET INTEREST SPREAD     3.33%     3.44%     4.12%
                   
NET INTEREST MARGIN     3.59%     3.69%     4.35%
                   
* Allowance for loan losses excluded from average total loans and earning assets
** Tax equivalent ratios for investment securities
                   
                   
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
  For the Six Months Ended
  June 30, 2015 June 30, 2014
             
  Average Interest Average Average Interest Average
INTEREST EARNING ASSETS Balance Income/ Yield/ Balance Income/ Yield/
    Expense Rate   Expense Rate
             
LOANS:            
Real Estate Loans $2,749,883 $65,976 4.80% $2,472,184 $62,762 5.08%
Commercial Loans 663,512 13,229 3.99% 425,284 10,039 4.72%
Consumer Loans 13,780 239 3.47% 12,567 250 3.98%
Total Gross Loans 3,427,175 79,444 4.64% 2,910,035 73,051 5.02%
Deferred Fees and Costs \ Loan Fees (10,012) 2,243   (8,322) 2,043  
Total Loans * 3,417,163 81,687 4.78% 2,901,713 75,094 5.18%
             
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS:            
Investment Securities** 349,536 3,897 2.42% 343,764 4,124 2.60%
Deposits Held In Other Institutions 7,993 64 1.60% 20,776 139 1.34%
Federal Funds Sold & Others 312,786 392 0.25% 74,750 104 0.28%
Total Investment Securities and Other Earning Assets 670,315 4,353 1.40% 439,290 4,367 2.15%
             
TOTAL INTEREST-EARNING ASSETS $4,087,478 $86,040 4.23% $3,341,003 $79,461 4.78%
             
Total Non-Interest Earning Assets 276,965     278,790    
TOTAL ASSETS $4,364,443     $3,619,793    
             
INTEREST BEARING LIABILITIES
             
INTEREST-BEARING DEPOSITS:            
Money Market $868,165 $2,871 0.66% $778,796 $2,577 0.66%
NOW 28,966 37 0.26% 33,454 31 0.19%
Savings 129,523 996 1.54% 117,543 921 1.57%
Time Deposits of $100,000 or More 1,358,242 5,664 0.83% 868,318 2,781 0.64%
Other Time Deposits 271,331 1,190 0.88% 238,445 852 0.72%
Total Interest Bearing Deposits 2,656,227 10,758 0.81% 2,036,556 7,162 0.70%
             
BORROWINGS:            
FHLB Advances and Other Borrowings 131,265 452 0.69% 171,727 141 0.16%
Junior Subordinated Debentures 71,828 866 2.41% 71,602 856 2.39%
Total Borrowings 203,093 1,318 1.30% 243,329 997 0.82%
             
TOTAL INTEREST BEARING LIABILITIES $2,859,320 $12,076 0.85% $2,279,885 $8,159 0.72%
             
Non-Interest Bearing Deposits 957,594     849,086    
Other Liabilities 40,775     37,327    
Shareholders' Equity 506,754     453,495    
TOTAL LIABILITIES AND EQUITY $4,364,443     $3,619,793    
             
NET INTEREST INCOME   $73,964     $71,302  
             
NET INTEREST SPREAD     3.38%     4.06%
             
NET INTEREST MARGIN     3.64%     4.29%
             
* 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
  June 30, 2015 March 31, 2015 June 30, 2014
       
Total shareholders' equity $515,583 $505,579 $464,769
Goodwill and other intangible assets, net (71,141) (71,385) (72,206)
Tangible common equity $444,442 $434,194 $392,563
       
Total assets $4,591,097 $4,413,278 $3,681,261
Goodwill and other intangible assets, net (71,141) (71,385) (72,206)
Tangible assets $4,519,956 $4,341,893 $3,609,055
       
Common shares outstanding 78,495,182 78,329,458 78,276,758
       
* Tangible Common Equity, Tangible Assets, and Net Interest Margin and Loan Yields Excluding The Effect of Acquisition Accounting Adjustments are Non-GAAP financial measures. Management believes that presentation of non-GAAP financial information included in this press release are meaningful and useful in understanding the business metrics of the Company's operations. We provide non-GAAP financial information for informational purposes and to enhance an understanding of the Company's GAAP consolidated financial statements. Readers should consider this non-GAAP information in addition to, but not instead or as superior to, the Company's financial statements in accordance with GAAP. Non-GAAP financial information presented by us may be determined or calculated differently by other companies, limiting the usefulness of non-GAAP measures for comparative purposes
       
CONTACT: Alex Ko, EVP & CFO, (213) 427-6560
         www.wilshirebank.com
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