LOS ANGELES, April 21, 2014 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq:WIBC) (the "Company"), the holding company for Wilshire Bank (the "Bank"), today reported net income available to common shareholders of $13.1 million, or $0.17 per diluted common share, for the quarter ended March 31, 2014. This compares to net income available to common shareholders of $11.6 million, or $0.16 per diluted common share, for the same period of the prior year, and net income available to common shareholders of $10.9 million, or $0.15 per diluted common share, for the fourth quarter of 2013. Financial results for the first quarter of 2014 include $3.4 million in merger-related expenses attributable to the acquisition and integration of BankAsiana and Saehan Bancorp.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "We are seeing a strong increase in our core earnings power as a result of the acquisitions of BankAsiana and Saehan Bancorp late in 2013. Compared to the first quarter of 2013, our total revenue increased 34%, and our pre-tax, pre-provision income increased by 17%. We are also seeing an improvement in our deposit mix resulting from our focus on developing more core deposit relationships. Our non-interest bearing deposits now represent the largest component of our total deposits, which has resulted in a decline in our cost of funds. We are pleased that the increase in our core earnings power and strong financial position has enabled us to increase the amount of capital we can return to our shareholders, with a 67% increase in our quarterly dividend."
Q1 2014 Summary
- Net income available to common shareholders totaled $13.1 million, or $0.17 per diluted common share, for the first quarter of 2014
- Total revenue of $50.3 million, an increase of 34% from the first quarter of 2013
- Return on average assets of 1.44% and return on average equity of 11.73% for the first quarter of 2014
- Loans receivable (net of deferred fees and costs) totaled $2.87 billion at March 31, 2014, an increase of 40% from $2.05 billion at March 31, 2013
- Total deposits were $2.92 billion at March 31, 2014, an increase of 35% from $2.16 billion at March 31, 2013
- Continued low credit losses and stable trends in assets quality resulted in no provision for losses on loans and loan commitments for Q1 2014
- Quarterly cash dividend payable on April 15, 2014 increased to $0.05 per common share
STATEMENT OF OPERATIONS
Pre-Tax, Pre-Provision Income
Pre-tax, pre-provision income ("PTPP") was $19.9 million for the first quarter of 2014, compared with $17.0 million for the first quarter of 2013, and $17.0 million for the fourth quarter of 2013. Excluding merger-related expenses, PTPP was $23.3 million for the first quarter of 2014, compared with $18.8 million for the fourth 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 and important information about Non-GAAP measures of financial performance.
Net Interest Income and Margin
Net interest income before provision for losses on loans and loan commitments totaled $35.2 million for the first quarter of 2014, an increase of 38% from $25.6 million for the first quarter of 2013, and an increase of 9% from $32.3 million for the fourth quarter of 2013. The increase from the prior quarter is primarily attributable to the full quarter impact of the acquisitions of Saehan Bancorp and BankAsiana.
Net interest margin was 4.22% for the first quarter of 2014, compared to 4.20% for the fourth quarter of 2013, and 3.99% for the first quarter of 2013. Excluding the effect of the amortization/accretion of the purchase accounting adjustments, the net interest margin was approximately 3.85% for the first quarter of 2014, compared with 3.91% for the fourth quarter of 2013. The decline in net interest margin is primarily attributable to a decline in average yield on loans, excluding the effects of purchase accounting adjustments.
Loan yields were 5.15% for the first quarter of 2014, compared with 5.17% for the fourth quarter of 2013, and 5.06% for the first quarter of 2013. Excluding the effect of the accretion of the purchase accounting adjustments, loan yields were 4.77% for the first quarter of 2014, compared to 4.86% for the fourth quarter of 2013.
The total cost of deposits was 0.51% for the first quarter of 2014, compared with 0.53% for the fourth quarter of 2013, and 0.53% for the first quarter of 2013.
Non-Interest Income
Total non-interest income was $11.0 million for the first quarter of 2014, compared to $8.7 million for the first quarter of 2013, and $9.3 million for the fourth quarter of 2013. The increase from the prior quarter was primarily due to a higher net gain on sale of loans and a higher level of servicing fees earned on previously sold Small Business Administration ("SBA") loans.
The $4.3 million in net gain on sale of loans recognized during the first quarter of 2014 consisted substantially of gains from the sale of SBA loans. Net gain on sale of loans for the fourth quarter of 2013 was $3.5 million. During the first quarter of 2014, the Company sold $43.5 million in SBA loans, compared with $43.2 million sold during the fourth quarter of 2013.
Non-Interest Expense
Total non-interest expense was $26.3 million for the first quarter of 2014, compared with $17.3 million for the first quarter of 2013, and $24.7 million for the fourth quarter of 2013. The increase from the prior quarter is primarily attributable to the full quarter impact of the acquisitions of Saehan Bancorp and BankAsiana, as well as an increase in merger-related expenses.
Total salaries and employee benefits expense was $12.7 million for the first quarter of 2014, compared with $8.8 million for the first quarter of 2013, and $12.9 million for the fourth quarter of 2013. The increase for the first quarter of 2014, compared to the first quarter of 2013, was primarily due to the impact of personnel added from the acquisitions of Saehan and BankAsiana, in addition to an increase in stock based compensation costs from equity grants made during the first quarter of 2014.
Other non-interest expense for the first quarter of 2014 totaled $6.0 million, compared with $5.8 million in the first quarter of 2013, and $6.3 million for the fourth quarter of 2013. The decrease from the prior quarter was primarily attributable to a decline in losses on low income housing tax credit investments and legal fees.
Merger-related non-recurring expense was $3.4 million in the first quarter of 2014 and was primarily related to former Saehan Bancorp's data processing system de-conversion and contract termination expenses.
The Company's operating efficiency ratio was 56.9% for the first quarter of 2014, compared with 50.5% for the first quarter of 2013 and 59.2% for the fourth quarter of 2013.
BALANCE SHEET
Total gross loans receivable were $2.88 billion at March 31, 2014, compared to $2.82 billion at December 31, 2013. The increase in loans during the first quarter of 2014 was primarily attributable to growth in the commercial real estate portfolio.
The following table shows gross loans receivable and gross loans by loan type:
| Quarter Ended | |||||
| (Dollars In Thousands) (Unaudited) | March 31, 2014 | December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 |
| Construction | $43,277 | $40,367 | $32,119 | $36,371 | $34,030 |
| Real Estate Secured | 2,401,203 | 2,332,121 | 1,819,052 | 1,715,567 | 1,695,980 |
| Commercial & Industrial | 419,313 | 437,524 | 342,057 | 337,057 | 313,645 |
| Consumer | 16,100 | 14,694 | 9,637 | 11,089 | 11,684 |
| Gross Loans Receivable * | 2,879,893 | 2,824,706 | 2,202,865 | 2,100,084 | 2,055,339 |
| Held-For-Sale Loans | 27,791 | 47,557 | 56,065 | 60,910 | 134,129 |
| Total Gross Loans * | $2,907,684 | $2,872,263 | $2,258,930 | $2,160,994 | $2,189,468 |
| * Gross loans receivable and total gross loans are not net of deferred fees and costs as shown in the consolidated balance sheet presentation | |||||
The following table presents the March 31, 2014 balance of gross loans by loan type and broken out by legacy Wilshire loans and loans acquired from former Mirae Bank, BankAsiana, and Saehan Bancorp.
| Quarter Ended March 31, 2014 | |||||
| (Dollars In Thousands) (Unaudited) | BankAsiana* | Saehan Bancorp* | Mirae Bank* | Legacy Wilshire | Total |
| Construction | $5,772 | $ -- | $ -- | $37,505 | $43,277 |
| Real Estate Secured | 112,703 | 336,608 | 66,387 | 1,885,505 | 2,401,203 |
| Commercial & Industrial | 32,926 | 32,355 | 4,847 | 349,185 | 419,313 |
| Consumer | 9 | 1,308 | 2 | 14,781 | 16,100 |
| Gross Loans Receivable | 151,410 | 370,271 | 71,236 | 2,286,976 | 2,879,893 |
| Held-For-Sale Loans | 257 | 189 | -- | 27,345 | 27,791 |
| Total Gross Loans | $151,667 | $370,460 | $71,236 | $2,314,321 | $2,907,684 |
| * Represents loans balances net of fair value adjustment | |||||
The following table shows quarterly loan originations by loan type:
| Quarter Ended | ||||||||||||||||||
| (Dollars In Thousands) (Unaudited) | March 31, 2014 | December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | |||||||||||||
| Real Estate Secured | $96,266 | 49% | $132,780 | 60% | $145,361 | 68% | $93,606 | 48% | $86,839 | 45% | ||||||||
| Commercial & Industrial | 36,619 | 18% | 30,541 | 14% | 23,710 | 11% | 40,927 | 21% | 55,096 | 29% | ||||||||
| Consumer | 632 | 0% | 546 | 0% | 540 | 0% | 75 | 0% | 537 | 0% | ||||||||
| SBA | 35,305 | 18% | 44,599 | 20% | 36,001 | 17% | 40,209 | 21% | 27,379 | 14% | ||||||||
| Residential Mortgage | 29,063 | 15% | 13,858 | 6% | 8,714 | 4% | 20,022 | 10% | 22,831 | 12% | ||||||||
| Total Loan Originations | $197,885 | 100% | $222,324 | 100% | $214,326 | 100% | $194,839 | 100% | $192,682 | 100% | ||||||||
Originations for the first quarter of 2014 were $197.9 million, compared with $222.3 million for the fourth quarter of 2013 and $192.7 million for the first quarter of 2013. The decrease from the previous quarter was primarily due to seasonally slower loan production typically experienced during the beginning of the year.
Total SBA loans held-for-sale at the end of the first quarter of 2014 were $26.8 million, compared to $45.6 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 $2.92 billion at March 31, 2014, compared with $2.87 billion at December 31, 2013. The increase in total deposits was primarily attributable to growth in non-interest bearing demand deposits, which was partially offset by a decline in time deposits. Toward the end of the first quarter of 2014, $29.8 million in brokered time deposits with a rate of 3.40% matured.
CREDIT QUALITY
The Company continued to experience relatively stable asset quality and a low level of credit losses during the first quarter of 2014. Accordingly, the Company determined that no provision for losses on loans and loan commitments was required for the first quarter of 2014. The allowance for loan losses totaled $53.5 million, or 1.86% of gross loans (excluding loans held-for-sale), at March 31, 2014, compared to $53.6 million, or 1.90% of gross loans (excluding loans held-for-sale), at December 31, 2013. The loans acquired from BankAsiana and Saehan during 2013, included in this calculation, were recorded at fair value and the remaining discount on these loans approximated $28.9 million at March 31, 2014. The coverage ratio of the allowance for loan losses to non-performing assets was 102.7% at March 31, 2014, compared with 119.5% at December 31, 2013.
Non-Performing Loans
At March 31, 2014, total non-performing loans were $43.1 million, or 1.48% of total gross loans, compared to $37.2 million, or 1.30% of total gross loans, at December 31, 2013. The increase in total non-performing loans is primarily attributable to two classified commercial loan relationships that were placed on non-accrual status during the first quarter of 2014.
Non-performing covered loans (previously acquired Mirae Bank loans covered under FDIC loss share agreement) totaled $6.6 million at March 31, 2014.
The following table shows total non-performing loans by loan type:
| NON-PERFORMING LOANS | Quarter Ended | ||||
| (Dollars In Thousands) (Unaudited) | March 31, 2014 | December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 |
| (Net of SBA Guaranty Portions) | |||||
| Construction | $ -- | $2,471 | $2,471 | $5,467 | $5,542 |
| Real Estate Secured | 35,988 | 33,569 | 29,568 | 20,090 | 19,366 |
| Commercial & Industrial | 7,121 | 1,196 | 1,004 | 1,224 | 1,169 |
| Total Non-Performing Loans | $43,109 | $37,236 | $33,043 | $26,781 | $26,077 |
Net Charge-offs/Recoveries
During the first quarter of 2014, the Company had total gross charge-offs of $1.6 million and recoveries of $1.5 million for net charge-offs of $99,000. Total gross charge-offs were largely from the former Saehan and Mirae loan portfolio with $850,000 and $728,000 in gross charge-offs, respectively, for the first quarter of 2014. Recoveries were primarily from the legacy Wilshire portfolio with $1.4 million in recoveries during the first quarter of 2014.
Gross charge-offs and recoveries by loan type are reflected in the tables below:
| GROSS LOAN CHARGE-OFFS | Quarter Ended | ||||
| (Dollars In Thousands) (Unaudited) | March 31, 2014 | December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 |
| (Net of SBA Guaranty Portions) | |||||
| Real Estate Secured | $672 | $552 | $2,438 | $3,668 | $4,405 |
| Commercial & Industrial | 964 | 997 | 764 | 746 | 1,183 |
| Consumer | 1 | 2 | -- | -- | 1 |
| Total Loan Charge-Offs | $1,637 | $1,551 | $3,202 | $4,414 | $5,589 |
| LOAN RECOVERIES | Quarter Ended | ||||
| (Dollars In Thousands) (Unaudited) | March 31, 2014 | December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 |
| (Net of SBA Guaranty Portions) | |||||
| Real Estate Secured | $1,028 | $2,038 | $148 | $340 | $215 |
| Commercial & Industrial | 510 | 679 | 510 | 433 | 658 |
| Consumer | -- | -- | 4 | 1 | 8 |
| Total Loan Recoveries | $1,538 | $2,717 | $662 | $774 | $881 |
Other measures of credit quality are shown in the following tables:
| DELINQUENT LOANS -- By Days Past Due | Quarter Ended | ||||
| (Dollars In Thousands) (Unaudited) | March 31, 2014 | December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 |
| (Net of SBA Guaranty Portions) | |||||
| 30 - 59 Days Past Due | $5,756 | $2,846 | $2,336 | $4,993 | $7,438 |
| 60 - 89 Days Past Due | 1,526 | 2,527 | 2,827 | 3,637 | 1,193 |
| 90 Days, and still accruing | -- | 167 | -- | 126 | 1,000 |
| Total Delinquent Loans | $7,282 | $5,540 | $5,163 | $8,756 | $9,631 |
| TDR Loans | |||||
| TROUBLED DEBT RESTRUCTURED LOANS | Quarter Ended | ||||
| (Dollars In Thousands) (Unaudited) | March 31, 2014 | December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 |
| (Net of SBA Guaranty Portions) | |||||
| Real Estate Secured | $34,565 | $30,008 | $23,133 | $23,671 | $23,588 |
| Commercial & Industrial | 5,563 | 6,212 | 6,339 | 6,730 | 7,279 |
| Total TDR Loans | $40,128 | $36,220 | $29,472 | $30,401 | $30,867 |
| Classifications | |||||
| LOAN CLASSIFICATIONS | Quarter Ended | ||||
| (Dollars In Thousands) (Unaudited) | March 31, 2014 | December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 |
| (Net of SBA Guaranty Portions) | |||||
| Special Mention | $101,627 | $100,798 | $43,519 | $49,571 | $74,553 |
| Substandard | 127,996 | 149,479 | 127,855 | 138,319 | 144,521 |
| Doubtful | 19,931 | 8,015 | 7,174 | 6,722 | 9,301 |
| Total Criticized and Classified Loans | $249,554 | $258,292 | $178,548 | $194,612 | $228,375 |
| Classified Loans | $147,927 | $157,494 | $135,029 | $145,041 | $153,822 |
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, 2014 |
Well Capitalized Regulatory Requirements |
Total Excess Above Well Capitalized Requirements |
| Tier 1 Leverage Capital Ratio | 12.50% | 5.00% | 266,850 |
| Tier 1 Risk-Based Capital Ratio | 14.92% | 6.00% | 265,804 |
| Total Risk-Based Capital Ratio | 16.17% | 10.00% | 184,030 |
| Tangible Common Equity To Tangible Assets * | 10.64% | N/A | N/A |
| Tangible Common Equity Per Common Share * | $4.84 | 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. | |||
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 first quarter of 2014, the Company did not repurchase any shares. Since the program's inception, 651,412 shares of common stock were repurchased for a total price of $4.3 million. The program expired on March 28, 2014.
CONFERENCE CALL
Management will host its quarterly conference call on April 22, 2014, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing 877-703-6105 (domestic number) or 857-244-7304 (international number) and providing the passcode 72989571.
ABOUT WILSHIRE BANCORP
Headquartered in Los Angeles, Wilshire Bancorp is the parent company of Wilshire Bank, which operates 35 branch offices in California, Texas, New Jersey and New York, and 7 loan production offices in Dallas, TX, Atlanta, GA, Aurora, CO, Annandale, VA, Palisades Park, NJ, Newark, CA, and New York, NY, and is an SBA preferred lender nationwide. 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 filings made from time to time with 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. 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) | March 31, | December 31, | Three Months | March 31, | Twelve Months |
| 2014 | 2013 | % Change | 2013 | % Change | |
| ASSETS: | |||||
| Cash and Due from Banks | $160,999 | $124,064 | 30% | $86,890 | 85% |
| Federal Funds Sold and Other Cash Equivalents | 7,301 | 46,590 | -84% | 55,005 | -87% |
| Total Cash and Cash Equivalents | 168,300 | 170,654 | -1% | 141,895 | 19% |
| Deposits held in other financial institutions | 21,006 | 21,019 | 0% | -- | 0% |
| Investment Securities Available For Sale | 342,438 | 352,437 | -3% | 336,569 | 2% |
| Investment Securities Held To Maturity | 32 | 35 | -9% | 46 | -30% |
| Total Investment Securities | 342,470 | 352,472 | -3% | 336,615 | 2% |
| Total Loans Held-For-Sale | 27,791 | 47,557 | -42% | 134,129 | -79% |
| Real Estate Construction | 42,124 | 39,268 | 7% | 33,275 | 27% |
| Residential Real Estate | 169,810 | 124,373 | 37% | 142,958 | 19% |
| Commercial Real Estate | 2,225,677 | 2,190,154 | 2% | 1,549,280 | 44% |
| Commercial and Industrial | 417,956 | 448,379 | -7% | 312,758 | 34% |
| Consumer | 16,072 | 14,668 | 10% | 11,666 | 38% |
| Total Loans Receivable, Net of Deferred Fees and Costs | 2,871,639 | 2,816,842 | 2% | 2,049,937 | 40% |
| Allowance For Loan Losses | (53,464) | (53,563) | 0% | (58,577) | -9% |
| Loans Receivable, Net of Allowance for Loan Losses | 2,818,175 | 2,763,279 | 2% | 1,991,360 | 42% |
| Accrued Interest Receivable | 8,293 | 8,350 | -1% | 7,533 | 10% |
| Due from Customers on Acceptances | 889 | 1,517 | -41% | 162 | 449% |
| Other Real Estate Owned | 8,969 | 7,600 | 18% | 1,219 | 636% |
| Premises and Equipment | 13,313 | 13,862 | -4% | 11,218 | 19% |
| Federal Home Loan Bank (FHLB) Stock, at Cost | 15,983 | 15,983 | 0% | 11,933 | 34% |
| Cash Surrender Value of Life Insurance | 22,661 | 22,519 | 1% | 22,074 | 3% |
| Investment in affordable housing partnerships | 42,459 | 43,316 | -2% | 38,334 | 11% |
| Deferred Income Taxes | 34,391 | 39,672 | -13% | 17,135 | 101% |
| Servicing Assets | 17,536 | 16,108 | 9% | 10,421 | 68% |
| Goodwill | 67,528 | 67,528 | 0% | 6,675 | 912% |
| FDIC Indemnification Asset | 2,169 | 4,856 | -55% | 4,954 | -56% |
| Other Assets | 22,533 | 21,443 | 5% | 20,763 | 9% |
| TOTAL ASSETS | $3,634,466 | $3,617,735 | 0% | $2,756,420 | 32% |
| LIABILITIES AND SHAREHOLDERS' EQUITY: | |||||
| LIABILITIES: | |||||
| Non-interest Bearing Demand Deposits | $869,598 | $832,152 | 4% | $593,584 | 46% |
| Savings and Interest Checking | 156,587 | 145,549 | 8% | 125,636 | 25% |
| Money Market Deposits | 799,299 | 780,280 | 2% | 623,103 | 28% |
| Time Deposits in denomination of $100,000 or more | 860,697 | 869,337 | -1% | 589,502 | 46% |
| Other Time Deposits | 237,028 | 244,192 | -3% | 230,733 | 3% |
| Total Deposits | 2,923,209 | 2,871,510 | 2% | 2,162,558 | 35% |
| FHLB Borrowings | 150,292 | 190,325 | -21% | 150,000 | 0% |
| Acceptance Outstanding | 889 | 1,517 | -41% | 162 | 449% |
| Junior Subordinated Debentures | 71,610 | 71,550 | 0% | 61,857 | 16% |
| Accrued Interest Payable | 2,462 | 2,418 | 2% | 2,056 | 20% |
| Other Liabilities | 34,429 | 40,997 | -16% | 26,074 | 32% |
| Total Liabilities | 3,182,891 | 3,178,317 | 0% | 2,402,707 | 32% |
| SHAREHOLDERS' EQUITY: | |||||
| Common Stock | 230,979 | 229,836 | 0% | 164,915 | 40% |
| Retained Earnings | 218,806 | 209,605 | 4% | 182,405 | 20% |
| Accumulated Other Comprehensive Income | 1,790 | (23) | N/A | 6,393 | -72% |
| Total Shareholders' Equity | 451,575 | 439,418 | 3% | 353,713 | 28% |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $3,634,466 | $3,617,735 | 0% | $2,756,420 | 32% |
| CONSOLIDATED STATEMENT OF OPERATIONS | |||||
| (Dollars In Thousands, Except Per Share Data) (Unaudited) | |||||
| Quarter Ended | Three Mths | Quarter Ended | Twelve Mths | ||
| March 31, 2014 | December 31, 2013 | % Change | March 31, 2013 | % Change | |
| INTEREST INCOME | |||||
| Interest and Fees on Loans | $37,101 | $33,954 | 9% | $26,885 | 38% |
| Interest on Investment Securities | 2,101 | 2,075 | 1% | 1,725 | 22% |
| Interest on Federal Funds Sold and Others | 151 | 158 | -4% | 153 | -1% |
| Total Interest Income | 39,353 | 36,187 | 9% | 28,763 | 37% |
| INTEREST EXPENSE | |||||
| Deposits | 3,676 | 3,446 | 7% | 2,849 | 29% |
| FHLB Advances and Other Borrowings | 504 | 413 | 22% | 362 | 39% |
| Total Interest Expense | 4,180 | 3,859 | 8% | 3,211 | 30% |
| Net Interest Income Before Provision for Losses on Loans and Loan Commitments | 35,173 | 32,328 | 9% | 25,552 | 38% |
| Provision for Losses on Loans and Loan Commitments | -- | -- | 0% | -- | 0% |
| Net Interest Income After Provision for Losses on Loans and Loan Commitments | 35,173 | 32,328 | 9% | 25,552 | 38% |
| NONINTEREST INCOME | |||||
| Service Charges on Deposits | 3,146 | 3,002 | 5% | 2,808 | 12% |
| Gain on Sales of Loans, Net | 4,329 | 3,980 | 9% | 3,486 | 24% |
| Gain on Sale/Call of Investment Securities | -- | 4 | -100% | -- | 0% |
| Other | 3,511 | 2,328 | 51% | 2,411 | 46% |
| Total Noninterest Income | 10,986 | 9,314 | 18% | 8,705 | 26% |
| NONINTEREST EXPENSES | |||||
| Salaries and Employee Benefits | 12,655 | 12,948 | -2% | 8,805 | 44% |
| FDIC Indemnification Impairment | -- | -- | 0% | -- | 0% |
| Occupancy & Equipment | 3,309 | 2,712 | 22% | 2,040 | 62% |
| Data Processing | 963 | 920 | 5% | 675 | 43% |
| Merger Related Costs | 3,364 | 1,785 | 88% | -- | 0% |
| Other | 5,966 | 6,288 | -5% | 5,764 | 4% |
| Total Noninterest Expenses | 26,257 | 24,653 | 7% | 17,284 | 52% |
| Income Before Income Taxes | 19,902 | 16,989 | 17% | 16,973 | 17% |
| Income Taxes Provision | 6,789 | 6,075 | 12% | 5,384 | 26% |
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $13,113 | $10,914 | 20% | $11,589 | 13% |
| PER COMMON SHARE INFORMATION: | |||||
| Basic Income Per Common Share | $0.17 | $0.15 | 14% | $0.16 | 3% |
| Diluted Income Per Common Share | $0.17 | $0.15 | 14% | $0.16 | 3% |
| WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | |||||
| Basic | 78,115,779 | 74,082,711 | 71,295,673 | ||
| Diluted | 78,496,106 | 74,462,668 | 71,431,841 | ||
| SUMMARY OF FINANCIAL DATA | ||||||
| (Dollars In Thousands, Except Per Share Data) (Unaudited) | ||||||
| Quarter Ended | ||||||
| AVERAGE BALANCES | March 31, 2014 | December 31, 2013 | March 31, 2013 | |||
| Average Assets | $3,631,268 | $3,306,168 | $2,726,058 | |||
| Average Equity | 447,188 | 401,153 | 348,071 | |||
| Average Total Loans | 2,881,650 | 2,626,557 | 2,126,940 | |||
| Average Deposits | 2,878,950 | 2,610,689 | 2,135,445 | |||
| Average Time Deposits of $100,000 or more | 874,039 | 801,836 | 581,213 | |||
| Average FHLB & Other Borrowings | 193,413 | 185,182 | 150,044 | |||
| Average Interest Earning Assets | 3,346,954 | 3,093,084 | 2,580,456 | |||
| Quarter Ended | ||||||
| PROFITABILITY | March 31, 2014 | December 31, 2013 | March 31, 2013 | |||
| Annualized Return on Average Assets | 1.44% | 1.32% | 1.70% | |||
| Annualized Return on Average Equity | 11.73% | 10.88% | 13.32% | |||
| Efficiency Ratio | 56.88% | 59.20% | 50.45% | |||
| Annualized Operating Expense/Average Assets | 2.89% | 2.98% | 2.54% | |||
| Annualized Net Interest Margin | 4.22% | 4.20% | 3.99% | |||
| As Of | ||||||
| March 31, 2014 | December 31, 2013 | March 31, 2013 | ||||
| DEPOSIT COMPOSITION | Percent of Total | Rate | Percent of Total | Rate | Percent of Total | Rate |
| Noninterest Bearing Demand Deposits | 29.7% | 0.00% | 29.0% | 0.00% | 27.4% | 0.00% |
| Savings & Interest Checking | 5.4% | 1.28% | 5.1% | 1.35% | 5.8% | 1.51% |
| Money Market Deposits | 27.3% | 0.66% | 27.2% | 0.65% | 28.8% | 0.63% |
| Time Deposits of $100,000 or More | 29.4% | 0.68% | 30.3% | 0.69% | 27.3% | 0.64% |
| Other Time Deposits | 8.1% | 0.67% | 8.5% | 0.81% | 10.7% | 0.80% |
| Total Deposits | 100.0% | 0.51% | 100.0% | 0.53% | 100.0% | 0.53% |
| As Of | ||||||
| CAPITAL RATIOS | March 31, 2014 | December 31, 2013 | March 31, 2013 | |||
| Tier 1 Leverage Ratio | 12.50% | 13.32% | 14.72% | |||
| Tier 1 Risk-Based Capital Ratio | 14.92% | 14.65% | 18.72% | |||
| Total Risk-Based Capital Ratio | 16.17% | 15.91% | 19.99% | |||
| Total Shareholders' Equity | $451,575 | $439,418 | $353,713 | |||
| Book Value Per Common Share | $5.77 | $5.63 | $4.96 | |||
| Tangible Common Equity Per Common Share * | $4.84 | $4.70 | $4.85 | |||
| Tangible Common Equity to Tangible Assets ** | 10.64% | 10.22% | 12.59% | |||
| * 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 | |||||
| March 31, 2014 | December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | |
| Balance at Beginning of Period | $53,563 | $52,397 | $54,937 | $58,577 | $63,285 |
| Provision for Losses on Loans | -- | -- | -- | -- | -- |
| Recoveries on Loans Previously Charged-off | 1,538 | 2,717 | 662 | 774 | 881 |
| Gross Loan Charge-offs | (1,637) | (1,551) | (3,202) | (4,414) | (5,589) |
| Balance at End of Period | $53,464 | $53,563 | $52,397 | $54,937 | $58,577 |
| Net Loan Charge-offs/Average Net Loans | 0.00% | -0.04% | 0.12% | 0.17% | 0.23% |
| Charge-offs/Average Total Loans | 0.06% | 0.06% | 0.15% | 0.21% | 0.27% |
| Allowance for Loan Losses/Gross Loans * | 1.86% | 1.90% | 2.38% | 2.62% | 2.85% |
| Allowance for Loan Losses/Legacy Wilshire Loans * | 1.90% | 1.95% | 2.48% | 2.75% | 3.01% |
| Allowance for Loan Losses/Non-accrual Loans | 124.02% | 144.50% | 158.57% | 206.10% | 233.59% |
| Allowance for Loan Losses/Non-performing Loans | 124.02% | 144.85% | 158.57% | 205.13% | 224.63% |
| Allowance for Loan Losses/Non-performing Assets | 102.66% | 119.46% | 155.06% | 197.88% | 214.60% |
| Allowance for Loan Losses/Classified Loans | 34.01% | 34.01% | 38.80% | 37.88% | 38.08% |
| * Excluding held-for-sale loans | |||||
| NON-PERFORMING ASSETS | |||||
| (Dollars In Thousands, Net of SBA Guaranty) | Quarter Ended | ||||
| (Unaudited) | March 31, 2014 | December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 |
| Non-accrual Loans | $43,109 | $37,068 | $33,043 | $26,655 | $25,077 |
| Loans 90 days or more past due and still accruing | -- | 168 | -- | 126 | 1,000 |
| Total Non-performing Loans | 43,109 | 37,236 | 33,043 | 26,781 | 26,077 |
| Total OREO | 8,969 | 7,600 | 748 | 982 | 1,219 |
| Total Non-performing Assets | $52,078 | $44,836 | $33,791 | $27,763 | $27,296 |
| Total Non-performing Loans/Gross Loans | 1.48% | 1.30% | 1.46% | 1.24% | 1.19% |
| Total Non-performing Assets/Total Assets | 1.43% | 1.24% | 1.19% | 1.00% | 0.99% |
| ALLOWANCE FOR OFF-BALANCE SHEET ITEMS | |||||
| (Dollars In Thousands) (Unaudited) | Quarter Ended | ||||
| March 31, 2014 | December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | |
| Balance at beginning of period | $1,061 | $1,061 | $1,023 | $1,023 | $1,023 |
| Credit for losses on off-balance sheet items | -- | -- | -- | -- | -- |
| Balance at end of period | $1,061 | $1,061 | $1,023 | $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 | |||||||||||||||||
| March 31, 2014 | December 31, 2013 | March 31, 2013 | |||||||||||||||
| 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 | $2,447,610 | $31,008 | 5.07% | $2,211,155 | $27,780 | 5.03% | $1,804,496 | $22,435 | 4.97% | ||||||||
| Commercial Loans | 430,076 | 4,919 | 4.58% | 411,421 | 5,143 | 5.00% | 314,389 | 3,630 | 4.62% | ||||||||
| Consumer Loans | 11,873 | 118 | 3.98% | 10,647 | 100 | 3.76% | 12,827 | 80 | 2.50% | ||||||||
| Total Gross Loans | 2,889,559 | 36,045 | 4.99% | 2,633,223 | 33,023 | 5.02% | 2,131,712 | 26,145 | 4.91% | ||||||||
| Deferred Fees and Costs \ Loan Fees | (7,909) | 1,056 | (6,666) | 931 | (4,772) | 740 | |||||||||||
| Total Loans * | 2,881,650 | 37,101 | 5.15% | 2,626,557 | 33,954 | 5.17% | 2,126,940 | 26,885 | 5.06% | ||||||||
| INVESTMENT SECURITIES AND | |||||||||||||||||
| OTHER INTEREST-EARNING ASSETS: | |||||||||||||||||
| Investment Securities** | 349,701 | 2,101 | 2.60% | 347,082 | 2,075 | 2.60% | 324,261 | 1,725 | 2.37% | ||||||||
| Deposits Held In Other Institutions | 21,019 | 69 | 1.31% | 13,593 | 38 | 1.12% | -- | -- | 0.00% | ||||||||
| Federal Funds Sold & Others | 94,584 | 82 | 0.35% | 105,852 | 120 | 0.45% | 129,255 | 153 | 0.47% | ||||||||
| Total Investment Securities and | |||||||||||||||||
| Other Earning Assets | 465,304 | 2,252 | 2.09% | 466,527 | 2,233 | 2.07% | 453,516 | 1,878 | 1.83% | ||||||||
| TOTAL INTEREST-EARNING ASSETS | $3,346,954 | $39,353 | 4.72% | $3,093,084 | $36,187 | 4.70% | $2,580,456 | $28,763 | 4.49% | ||||||||
| Total Non-Interest Earning Assets | 284,314 | 213,084 | 145,602 | ||||||||||||||
| TOTAL ASSETS | $3,631,268 | $3,306,168 | $2,726,058 | ||||||||||||||
| INTEREST BEARING LIABILITIES | |||||||||||||||||
| INTEREST-BEARING DEPOSITS: | |||||||||||||||||
| Money Market | $784,219 | $1,301 | 0.66% | $687,948 | $1,121 | 0.65% | $623,471 | $976 | 0.63% | ||||||||
| NOW | 32,019 | 15 | 0.19% | 29,212 | 15 | 0.21% | 25,958 | 12 | 0.19% | ||||||||
| Savings | 120,908 | 476 | 1.58% | 109,304 | 452 | 1.65% | 100,560 | 464 | 1.85% | ||||||||
| Time Deposits of $100,000 or More | 874,039 | 1,485 | 0.68% | 801,836 | 1,384 | 0.69% | 581,213 | 924 | 0.64% | ||||||||
| Other Time Deposits | 236,826 | 399 | 0.67% | 231,821 | 474 | 0.82% | 235,862 | 473 | 0.80% | ||||||||
| Total Interest Bearing Deposits | 2,048,011 | 3,676 | 0.72% | 1,860,121 | 3,446 | 0.74% | 1,567,064 | 2,849 | 0.73% | ||||||||
| BORROWINGS: | |||||||||||||||||
| FHLB Advances and Other Borrowings | 193,413 | 74 | 0.15% | 185,182 | 64 | 0.14% | 150,044 | 80 | 0.21% | ||||||||
| Junior Subordinated Debentures | 71,573 | 430 | 2.40% | 66,275 | 349 | 2.11% | 61,857 | 282 | 1.82% | ||||||||
| Total Borrowings | 264,986 | 504 | 0.76% | 251,457 | 413 | 0.66% | 211,901 | 362 | 0.68% | ||||||||
| TOTAL INTEREST BEARING LIABILITIES | $2,312,997 | $4,180 | 0.72% | $2,111,578 | $3,859 | 0.73% | $1,778,965 | $3,211 | 0.72% | ||||||||
| Non-Interest Bearing Deposits | 830,939 | 750,568 | 568,381 | ||||||||||||||
| Other Liabilities | 40,144 | 42,869 | 30,641 | ||||||||||||||
| Shareholders' Equity | 447,188 | 401,153 | 348,071 | ||||||||||||||
| TOTAL LIABILITIES AND EQUITY | $3,631,268 | $3,306,168 | $2,726,058 | ||||||||||||||
| NET INTEREST INCOME | $35,173 | $32,328 | $25,552 | ||||||||||||||
| . | |||||||||||||||||
| NET INTEREST SPREAD | 4.00% | 3.97% | 3.77% | ||||||||||||||
| NET INTEREST MARGIN | 4.22% | 4.20% | 3.99% | ||||||||||||||
| * Allowance for loan losses excluded from average total loans and earning assets | |||||||||||||||||
| ** Tax equivalent ratios for investment securities | |||||||||||||||||
| RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES: | |||
| TANGIBLE COMMON EQUITY AND TANGIBLE ASSETS * | |||
| (Dollars In Thousands, Except Share Data) (Unaudited) | |||
| Quarter Ended | |||
| March 31, 2014 | December 31, 2013 | March 31, 2013 | |
| Total shareholders' equity | $451,575 | $439,418 | $353,713 |
| Goodwill and other intangible assets, net | (72,480) | (72,752) | (7,642) |
| Tangible common equity | $379,095 | $366,666 | $346,071 |
| Total assets | $3,634,466 | $3,617,084 | $2,756,420 |
| Goodwill and other intangible assets, net | (72,480) | (72,752) | (7,642) |
| Tangible assets | $3,561,986 | $3,544,983 | $2,748,778 |
| Common shares outstanding | 78,247,026 | 78,061,307 | 71,296,956 |
| PRE-TAX, PRE-PROVISION INCOME (PTPP) * | |||
| (Dollars In Thousands) (Unaudited) | Quarter Ended | ||
| March 31, 2014 | December 31, 2013 | March 31, 2013 | |
| Net Income | $13,113 | $10,914 | $11,589 |
| Add Back - Income Tax Provision (Benefit) | 6,789 | 6,075 | 5,384 |
| Add Back - Provision for Losses on Loans and Loan Commitments | -- | -- | -- |
| Pre-tax, Pre-Provision Income (PTPP) | 19,902 | $16,989 | $16,973 |
| Merger Related Costs | 3,364 | 1,785 | -- |
| PTPP, Excluding Merger Related Costs | $23,266 | $18,774 | $16,973 |
| PTPP to Average Assets (Annualized) | 2.19% | 2.06% | 2.49% |
| PTPP, Excluding Merger Related Costs to Average Assets (Annualized) | 2.56% | 2.27% | 2.49% |
| * 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 | |||