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% | |||
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* Tangible common equity excludes goodwill, other intangible assets, and TARP preferred stock |
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** Tangible assets excludes goodwill and intangible assets |
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| 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% | ||||||
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* Tax equivalent ratios for investment securities |
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| 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 | ||||||