LOS ANGELES, Oct. 20, 2014 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq:WIBC) (the "Company"), the holding company for Wilshire Bank (the "Bank"), today reported net income of $15.1 million, or $0.19 per diluted common share, for the quarter ended September 30, 2014. This compares to net income of $11.3 million, or $0.16 per diluted common share, for the same period of the prior year, and net income of $14.7 million, or $0.19 per diluted common share, for the second quarter of 2014.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "We had an outstanding quarter from a business development standpoint, generating almost $400 million in loan originations, which is a record level for the Company. It is important to note that we had contributions from all of our major lending areas including commercial real estate, commercial, SBA, and residential mortgages. As a result of our strong loan production, our total loan portfolio increased at an annualized rate of 27% during the third quarter. The performance is a testament to the highly productive marketing team we have developed at Wilshire, which has been strengthened by the addition of experienced business development officers from our BankAsiana and Saehan acquisitions. We are very pleased that we have been able to generate this growth in our loan portfolio, while continuing to see declining levels of problem assets, which underscores our commitment to maintaining a strong credit culture. We continue to have a healthy pipeline of attractive lending opportunities, which should enable us to continue our positive trends over the rest of 2014."
Q3 2014 Summary
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Net income totaled $15.1 million, or $0.19 per diluted common share, for the third quarter of 2014
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Total revenue of $46.4 million for the third quarter of 2014, an increase of 34% from the third quarter of 2013
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Return on average assets of 1.61% and return on average equity of 12.80% for the third quarter of 2014
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Net interest margin of 4.26% for the third quarter of 2014, an increase from 4.08% for the third quarter of 2013
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Loans receivable (net of deferred fees and costs) totaled $3.16 billion at September 30, 2014, an increase of 44% from $2.20 billion at September 30, 2013
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Total deposits were $3.19 billion at September 30, 2014, an increase of 41% from $2.25 billion at September 30, 2013
- Continued low credit losses and improvement in asset quality resulted in no provision for losses on loans and loan commitments for the third quarter of 2014
STATEMENT OF OPERATIONS
Net interest income before provision for losses on loans and loan commitments totaled $36.8 million for the third quarter of 2014, an increase of 38% from $26.7 million for the third quarter of 2013, and an increase of 2% from $36.1 million for the second quarter of 2014. The increase from the prior quarter is primarily attributable to a higher average loan balance and an increase in acquired loan discount accretion income. Discount accretion income from loans acquired from Saehan Bancorp and BankAsiana totaled $2.9 million for the third quarter of 2014, compared to $2.5 million for the second quarter of 2014.
Net interest margin was 4.26% for the third quarter of 2014, compared to 4.35% for the second quarter of 2014, and 4.08% for the third quarter of 2013. Excluding the effect of the amortization/accretion of the purchase accounting adjustments for the acquisitions for Saehan Bancorp and BankAsiana, the net interest margin was 3.89% for the third quarter of 2014, compared with 4.00% for the second quarter of 2014. The decrease in net interest margin is attributable to a decrease in average yield on loans, excluding the effects of purchase accounting adjustments, and an increase in the cost of deposits.
Loan yields were 5.12% for the third quarter of 2014, compared with 5.20% for the second quarter of 2014, and 5.05% for the third quarter of 2013. Excluding the effect of the accretion of the purchase accounting adjustments for Saehan Bancorp and BankAsiana, loan yields were 4.74% for the third quarter of 2014, compared to 4.85% for the second quarter of 2014.
The total cost of deposits was 0.53% for the third quarter of 2014, compared with 0.48% for the second quarter of 2014 and 0.53% for the third quarter of 2013.
Non-Interest Income
Total non-interest income was $9.6 million for the third quarter of 2014, compared to $7.8 million for the third quarter of 2013, and $10.7 million for the second quarter of 2014. The decrease from the prior quarter was primarily due a lower net gain on sale of Small Business Administration ("SBA") loans, which was partially offset by an increase in other real estate owned ("OREO") rental and other miscellaneous income.
The $2.4 million in net gain on sale of loans recognized during the third quarter of 2014 consisted substantially of gains from the sale of SBA loans. Net gain on sale of loans for the second quarter of 2014 was $4.7 million. During the third quarter of 2014, the Company sold $20.3 million in SBA loans, compared with $45.3 million sold during the second quarter of 2014.
Non-Interest Expense
Total non-interest expense was $23.2 million for the third quarter of 2014, compared with $17.8 million for the third quarter of 2013, and $24.6 million for the second quarter of 2014. The reduction in non-interest expense from the prior quarter was primarily attributable to fewer merger-related expenses and a reduction in impairment charge to the Company's FDIC indemnification asset.
Total salaries and employee benefits expense was $12.3 million for the third quarter of 2014, compared with $8.8 million for the third quarter of 2013, and $12.4 million for the second quarter of 2014.
Other non-interest expense for the third quarter of 2014 totaled $6.4 million, compared with $6.3 million in the third quarter of 2013, and $7.1 million for the second quarter of 2014. The decrease from the prior quarter was primarily attributable to a reduction in OREO and low income housing investment-related expenses.
The Company's operating efficiency ratio was 50.1% for the third quarter of 2014, compared with 51.7% for the third quarter of 2013, and 52.4% for the second quarter of 2014.
BALANCE SHEET
Total gross loans receivable (not including deferred fees and costs) were $3.17 billion at September 30, 2014, compared to $2.98 billion at June 30, 2014. The increase in loans during the third quarter of 2014 was driven by growth in the real estate secured and commercial & industrial portfolios.
The following table shows gross loans receivable, loans held-for-sale, and gross loans by loan type:
| Quarter Ended | ||||||||||||||||||
| (Dollars In Thousands) (Unaudited) | September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | September 30, 2013 | |||||||||||||
| Construction | $ 41,406 | $ 44,598 | $ 43,277 | $ 40,367 | $ 32,119 | |||||||||||||
| Real Estate Secured | 2,595,906 | 2,485,875 | 2,401,203 | 2,332,121 | 1,819,052 | |||||||||||||
| Commercial & Industrial | 521,410 | 435,693 | 419,313 | 437,524 | 342,057 | |||||||||||||
| Consumer | 12,842 | 13,075 | 16,100 | 14,694 | 9,637 | |||||||||||||
| Gross Loans Receivable * | 3,171,564 | 2,979,241 | 2,879,893 | 2,824,706 | 2,202,865 | |||||||||||||
| Held-For-Sale Loans | 16,236 | 6,207 | 27,791 | 47,557 | 56,065 | |||||||||||||
| Total Gross Loans * | $ 3,187,800 | $ 2,985,448 | $ 2,907,684 | $ 2,872,263 | $ 2,258,930 | |||||||||||||
| * 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 September 30, 2014 balance of gross loans by loan type and broken out by legacy Wilshire loans and loans acquired from former BankAsiana, Saehan Bank, and Mirae Bank.
| At September 30, 2014 | ||||||||||||||||||
| (Dollars In Thousands) (Unaudited) | BankAsiana* | Saehan Bank* | Mirae Bank* | Legacy Wilshire | Total | |||||||||||||
| Construction | $ 3,756 | $ -- | $ -- | $ 37,650 | $ 41,406 | |||||||||||||
| Real Estate Secured | 108,266 | 318,920 | 43,813 | 2,124,907 | 2,595,906 | |||||||||||||
| Commercial & Industrial | 24,379 | 20,800 | 2,830 | 473,401 | 521,410 | |||||||||||||
| Consumer | 1 | 833 | -- | 12,008 | 12,842 | |||||||||||||
| Gross Loans Receivable | 136,402 | 340,553 | 46,643 | 2,647,966 | 3,171,564 | |||||||||||||
| Held-For-Sale Loans | -- | -- | -- | 16,236 | 16,236 | |||||||||||||
| Total Gross Loans | $ 136,402 | $ 340,553 | $ 46,643 | $ 2,664,202 | $ 3,187,800 | |||||||||||||
| * Represents loans balances net of fair value adjustments | ||||||||||||||||||
The following table shows quarterly loan originations:
| Quarter Ended | ||||||||||||||
| (Dollars In Thousands) (Unaudited) | September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | September 30, 2013 | |||||||||
| Real Estate Secured | $191,272 | 48% | $170,042 | 60% | $96,266 | 49% | $132,780 | 60% | $145,361 | 68% | ||||
| Commercial & Industrial | 89,166 | 22% | 31,058 | 11% | 36,619 | 18% | 30,541 | 14% | 23,710 | 11% | ||||
| Consumer | 6,560 | 2% | 1,580 | 1% | 632 | 0% | 546 | 0% | 540 | 0% | ||||
| SBA | 41,373 | 10% | 37,004 | 13% | 35,305 | 18% | 44,599 | 20% | 36,001 | 17% | ||||
| Residential Mortgage Dept. | 70,791 | 18% | 42,325 | 15% | 29,063 | 15% | 13,858 | 6% | 8,714 | 4% | ||||
| Total Loan Originations | $399,162 | 100% | $282,009 | 100% | $197,885 | 100% | $222,324 | 100% | $214,326 | 100% | ||||
Originations for the third quarter of 2014 totaled $399.2 million, compared to $282.0 million for the second quarter of 2014, and $214.3 million for the third quarter of 2013. The increase from the previous quarter was primarily due to higher real estate secured, commercial and residential mortgage loan production.
Total SBA loans held-for-sale at the end of the third quarter of 2014 were $16.2 million, compared to $5.1 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 $3.19 billion at September 30, 2014, compared with $2.96 billion at June 30, 2014. The increase in total deposits was primarily attributable to growth in time deposits, which was partially offset by a decrease in non-interest bearing demand deposits and savings and interest checking deposits.
CREDIT QUALITY
The Company had net loan recoveries during the third quarter of 2014 and experienced a continued decline in criticized and classified loans, while non-accrual loans increased by $2.5 million as previously identified problem loans continued to progress toward resolution. Due to the continued low level of loss experience and decline in total problem loans, the Company determined that no provision for losses on loans and loan commitments was required for the third quarter of 2014. The allowance for loan losses totaled $53.1 million, or 1.67% of gross loans (excluding loans held-for-sale), at September 30, 2014, compared to $52.7 million, or 1.77% of gross loans (excluding loans held-for-sale), at June 30, 2014. Acquired loans, included in the allowance coverage ratios, were recorded at fair value and the remaining discount on these loans was approximately $24.7 million at September 30, 2014. The coverage ratio of the allowance for loan losses to non-performing assets was 103.2% at September 30, 2014, compared with 107.4% at June 30, 2014.
Non-Performing Loans
At September 30, 2014, total non-performing loans were $44.9 million, or 1.41% of total gross loans, compared to $42.4 million, or 1.42% of total gross loans, at June 30, 2014.
The following table shows total non-performing loans by loan type:
| NON-PERFORMING LOANS | Quarter Ended | ||||||||
| (Dollars In Thousands) (Unaudited) | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | ||||
| (Net of SBA Guaranty Portions) | |||||||||
| Construction | $ -- | $ -- | $ -- | $ 2,471 | $ 2,471 | ||||
| Real Estate Secured | 37,205 | 35,585 | 35,988 | 33,569 | 29,568 | ||||
| Commercial & Industrial | 7,699 | 6,769 | 7,121 | 1,196 | 1,004 | ||||
| Consumer | 1 | 4 | -- | -- | -- | ||||
| Total Non-Performing Loans | $ 44,905 | $ 42,358 | $ 43,109 | $ 37,236 | $ 33,043 | ||||
Net Charge-offs/Recoveries
During the third quarter of 2014, the Company had total gross charge-offs of $1.8 million and recoveries of $2.2 million which resulted in total net recoveries of $447,000 for the quarter.
Gross charge-offs and recoveries by loan type are reflected in the tables below:
| GROSS LOAN CHARGE-OFFS | Quarter Ended | ||||||||||
| (Dollars In Thousands) (Unaudited) | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | ||||||
| Real Estate Secured | $ 1,161 | $ 782 | $ 672 | $ 552 | $ 2,438 | ||||||
| Commercial & Industrial | 614 | 1,021 | 964 | 997 | 764 | ||||||
| Consumer | -- | -- | 1 | 2 | -- | ||||||
| Total Loan Charge-Offs | $ 1,775 | $ 1,803 | $ 1,637 | $ 1,551 | $ 3,202 | ||||||
| LOAN RECOVERIES | Quarter Ended | ||||||||||
| (Dollars In Thousands) (Unaudited) | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | ||||||
| Real Estate Secured | $ 1,688 | $ 586 | $ 1,028 | $ 2,038 | $ 148 | ||||||
| Commercial & Industrial | 534 | 408 | 510 | 679 | 510 | ||||||
| Consumer | -- | 14 | -- | -- | 4 | ||||||
| Total Loan Recoveries | $ 2,222 | $ 1,008 | $ 1,538 | $ 2,717 | $ 662 | ||||||
Other measures of credit quality are shown in the following tables:
| DELINQUENT LOANS -- By Days Past Due | Quarter Ended | ||||||||
| (Dollars In Thousands) (Unaudited) | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | ||||
| (Net of SBA Guaranty Portions) | |||||||||
| 30 - 59 Days Past Due | $4,137 | $4,556 | $5,756 | $2,846 | $2,336 | ||||
| 60 - 89 Days Past Due | 4,002 | 2,992 | 1,526 | 2,527 | 2,827 | ||||
| 90 Days, and still accruing | -- | -- | -- | 167 | -- | ||||
| Total Delinquent Loans | $8,139 | $7,548 | $7,282 | $5,540 | $5,163 | ||||
| TROUBLED DEBT RESTRUCTURED LOANS | Quarter Ended | ||||||||
| (Dollars In Thousands) (Unaudited) | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | ||||
| (Net of SBA Guaranty Portions) | |||||||||
| Real Estate Secured | $31,313 | $33,349 | $34,565 | $30,008 | $23,133 | ||||
| Commercial & Industrial | 11,425 | 5,542 | 5,563 | 6,212 | 6,339 | ||||
| Total TDR Loans | $42,738 | $38,891 | $40,128 | $36,220 | $29,472 | ||||
| LOAN CLASSIFICATIONS | Quarter Ended | ||||||||
| (Dollars In Thousands) (Unaudited) | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | ||||
| (Net of SBA Guaranty Portions) | |||||||||
| Special Mention | $62,929 | $88,382 | $101,627 | $100,798 | $43,519 | ||||
| Substandard | 94,854 | 110,462 | 127,996 | 149,479 | 127,855 | ||||
| Doubtful | 15,291 | 18,040 | 19,931 | 8,015 | 7,174 | ||||
| Total Criticized and Classified Loans | $173,074 | $216,884 | $249,554 | $258,292 | $178,548 | ||||
| Total Classified Loans | $110,145 | $128,502 | $147,927 | $157,494 | $135,029 | ||||
CAPITAL RATIOS
As of September 30, 2014, 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) | September 30, 2014 |
Well Capitalized Regulatory Requirements |
Total Excess Above Well Capitalized Requirements |
||||||||
| Tier 1 Leverage Capital Ratio | 12.72% | 5.00% | $ 284,052 | ||||||||
| Tier 1 Risk-Based Capital Ratio | 14.37% | 6.00% | $ 272,684 | ||||||||
| Total Risk-Based Capital Ratio | 15.63% | 10.00% | $ 183,308 | ||||||||
| Tangible Common Equity To Tangible Assets * | 10.45% | N/A | N/A | ||||||||
| Tangible Common Equity Per Common Share * | $ 5.16 | 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 October 21, 2014, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing 800-299-8538 (domestic) or 617-786-2902 (international) and providing passcode number 96276277.
ABOUT WILSHIRE BANCORP
Headquartered in Los Angeles, Wilshire Bancorp is the parent company of Wilshire Bank, which operates 36branch offices in California, Texas, New Jersey and New York, and 4 loan production offices in Atlanta, GA, Aurora, CO, Newark, CA, and Bellevue, WA, 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) | |||||
|
September 30, 2014 |
June 30, 2014 |
Three Months % Change |
September 30, 2013 |
Twelve Months % Change |
|
| ASSETS: | |||||
| Cash and due from banks | $173,586 | $155,799 | 11% | $92,896 | 87% |
| Federal funds sold and other cash equivalents | 21 | 927 | -98% | 55,005 | -100% |
| Total Cash and Cash Equivalents | 173,607 | 156,726 | 11% | 147,901 | 17% |
| Deposits held in other financial institutions | 9,000 | 20,509 | -56% | -- | 0% |
| Investment securities available for sale | 365,866 | 327,239 | 12% | 325,724 | 12% |
| Investment securities held to maturity | 28 | 30 | -7% | 38 | -26% |
| Total Investment Securities | 365,894 | 327,269 | 12% | 325,762 | 12% |
| Total Loans Held-For-Sale | 16,236 | 6,207 | 162% | 56,065 | -71% |
| Real estate construction | 40,062 | 43,292 | -7% | 31,172 | 29% |
| Residential real estate | 174,466 | 167,055 | 4% | 144,845 | 20% |
| Commercial real estate | 2,418,776 | 2,314,746 | 4% | 1,669,511 | 45% |
| Commercial and industrial | 515,831 | 431,758 | 19% | 340,943 | 51% |
| Consumer | 12,810 | 13,044 | -2% | 9,614 | 33% |
| Total loans receivable, net of deferred fees and costs | 3,161,945 | 2,969,895 | 6% | 2,196,085 | 44% |
| Allowance for loan losses | (53,116) | (52,669) | 1% | (52,397) | 1% |
| Loans Receivable, Net of Allowance for Loan Losses | 3,108,829 | 2,917,226 | 7% | 2,143,688 | 45% |
| Accrued interest receivable | 8,324 | 8,032 | 4% | 6,873 | 21% |
| Due from customers on acceptances | 10,350 | 3,090 | 235% | 328 | 3055% |
| Other real estate owned | 6,565 | 6,676 | -2% | 748 | 778% |
| Premises and equipment | 12,380 | 12,925 | -4% | 11,531 | 7% |
| Federal home loan bank (FHLB) stock, at cost | 16,539 | 16,989 | -3% | 13,280 | 25% |
| Cash surrender value of life insurance | 22,945 | 22,803 | 1% | 22,372 | 3% |
| Investment in affordable housing partnerships | 45,017 | 41,112 | 9% | 44,400 | 1% |
| Deferred income taxes | 27,656 | 32,459 | -15% | 19,823 | 40% |
| Servicing assets | 17,927 | 18,168 | -1% | 11,573 | 55% |
| Goodwill | 67,473 | 67,528 | 0% | 6,675 | 911% |
| FDIC indemnification asset | -- | 267 | -100% | 4,950 | -100% |
| Other assets | 27,056 | 23,275 | 16% | 16,546 | 64% |
| TOTAL ASSETS | $3,935,798 | $3,681,261 | 7% | $2,832,515 | 39% |
| LIABILITIES AND SHAREHOLDERS' EQUITY: | |||||
| LIABILITIES: | |||||
| Non-interest bearing demand deposits | $914,667 | $945,010 | -3% | $655,864 | 39% |
| Savings and interest checking | 156,669 | 160,155 | -2% | 127,835 | 23% |
| Money market deposits | 772,902 | 758,833 | 2% | 580,833 | 33% |
| Time deposits in denomination of $100,000 or more | 1,092,058 | 856,681 | 27% | 683,290 | 60% |
| Other time deposits | 249,058 | 235,335 | 6% | 205,795 | 21% |
| Total Deposits | 3,185,354 | 2,956,014 | 8% | 2,253,617 | 41% |
| FHLB borrowings | 150,000 | 150,260 | 0% | 120,000 | 25% |
| Acceptance outstanding | 10,350 | 3,090 | 235% | 328 | 3055% |
| Junior subordinated debentures | 71,722 | 71,665 | 0% | 61,857 | 16% |
| Accrued interest payable | 2,249 | 2,349 | -4% | 1,808 | 24% |
| Other liabilities | 40,415 | 33,114 | 22% | 30,589 | 32% |
| Total Liabilities | 3,460,090 | 3,216,492 | 8% | 2,468,199 | 40% |
| SHAREHOLDERS' EQUITY: | |||||
| Common stock | 231,715 | 231,368 | 0% | 161,368 | 44% |
| Retained earnings | 240,770 | 229,556 | 5% | 201,033 | 20% |
| Accumulated other comprehensive income | 3,223 | 3,845 | -16% | 1,915 | 68% |
| Total Shareholders' Equity | 475,708 | 464,769 | 2% | 364,316 | 31% |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $3,935,798 | $3,681,261 | 7% | $2,832,515 | 39% |
| CONSOLIDATED STATEMENT OF OPERATIONS | |||||
| (Dollars In Thousands, Except Per Share Data) (Unaudited) | |||||
| Quarter Ended | Three Mths | Quarter Ended | Twelve Mths | ||
| September 30, 2014 | June 30, 2014 | % Change | September 30, 2013 | % Change | |
| INTEREST INCOME | |||||
| Interest and fees on loans | $39,217 | $37,993 | 3% | $27,913 | 40% |
| Interest on investment securities | 2,018 | 2,023 | 0% | 1,879 | 7% |
| Interest on federal funds sold and others | 91 | 92 | -1% | 148 | -39% |
| Total Interest Income | 41,326 | 40,108 | 3% | 29,940 | 38% |
| INTEREST EXPENSE | |||||
| Deposits | 3,981 | 3,486 | 14% | 2,923 | 36% |
| FHLB advances and other borrowings | 577 | 493 | 17% | 321 | 80% |
| Total Interest Expense | 4,558 | 3,979 | 15% | 3,244 | 41% |
| Net interest income before provision for losses on loans and loan commitments | 36,768 | 36,129 | 2% | 26,696 | 38% |
| Provision for losses on loans and loan commitments | -- | -- | 0% | -- | 0% |
| Net interest income after provision for losses on loans and loan commitments | 36,768 | 36,129 | 2% | 26,696 | 38% |
| NONINTEREST INCOME | |||||
| Service charges on deposits | 3,268 | 3,174 | 3% | 2,791 | 17% |
| Gain on sales of loans, net | 2,418 | 4,687 | -48% | 2,814 | -14% |
| Gain on sale/call of investment securities | -- | -- | 0% | -- | 0% |
| Other | 3,912 | 2,883 | 36% | 2,227 | 76% |
| Total Noninterest Income | 9,598 | 10,744 | -11% | 7,832 | 23% |
| NONINTEREST EXPENSES | |||||
| Salaries and employee benefits | 12,261 | 12,449 | -2% | 8,830 | 39% |
| FDIC indemnification impairment | -- | 597 | -100% | -- | 0% |
| Occupancy and equipment | 3,350 | 3,444 | -3% | 2,061 | 63% |
| Data processing | 1,210 | 795 | 52% | 623 | 94% |
| Merger related costs | -- | 213 | -100% | -- | 0% |
| Other | 6,418 | 7,052 | -9% | 6,323 | 2% |
| Total Noninterest Expenses | 23,239 | 24,550 | -5% | 17,837 | 30% |
| Income before income taxes | 23,127 | 22,323 | 4% | 16,691 | 39% |
| Income taxes provision | 7,998 | 7,659 | 4% | 5,357 | 49% |
| NET INCOME | $15,129 | $14,664 | 3% | $11,334 | 33% |
| PER COMMON SHARE INFORMATION: | |||||
| Basic income per common share | $0.19 | $0.19 | 3% | $0.16 | 21% |
| Diluted income per common share | $0.19 | $0.19 | 3% | $0.16 | 21% |
| WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | |||||
| Basic | 78,302,251 | 78,267,128 | 70,742,136 | ||
| Diluted | 78,619,592 | 78,613,468 | 71,045,994 | ||
| CONSOLIDATED STATEMENT OF OPERATIONS | |||
| (Dollars In Thousands, Except Per Share Data) (Unaudited) | |||
| Nine Months Ended | Twelve Months | ||
| September 30, 2014 | September 30, 2013 | % Change | |
| INTEREST INCOME | |||
| Interest and fees on loans | $114,311 | $81,768 | 40% |
| Interest on investment securities | 6,142 | 5,347 | 15% |
| Interest on federal funds sold | 334 | 437 | -24% |
| Total Interest Income | 120,787 | 87,552 | 38% |
| INTEREST EXPENSE | |||
| Deposits | 11,143 | 8,522 | 31% |
| FHLB advances and other borrowings | 1,574 | 1,028 | 53% |
| Total Interest Expense | 12,717 | 9,550 | 33% |
| Net interest income before provision for losses on loans and loan commitments | 108,070 | 78,002 | 39% |
| Provision for losses on loans and loan commitments | -- | -- | 0% |
| Net interest income after provision for losses on loans and loan commitments | 108,070 | 78,002 | 39% |
| NONINTEREST INCOME | |||
| Service charges on deposits | 9,588 | 8,410 | 14% |
| Gain on sales of loans, net | 11,434 | 9,435 | 21% |
| Gain on sale/call of investment securities | -- | 15 | -100% |
| Other | 10,306 | 7,009 | 47% |
| Total Noninterest Income | 31,328 | 24,869 | 26% |
| NONINTEREST EXPENSES | |||
| Salaries and employee benefits | 37,365 | 27,183 | 37% |
| FDIC indemnification impairment | 597 | -- | 0% |
| Occupancy and equipment | 10,103 | 6,139 | 65% |
| Data processing | 2,968 | 1,881 | 58% |
| Merger related costs | 3,577 | -- | 0% |
| Other | 19,436 | 17,000 | 14% |
| Total Noninterest Expenses | 74,046 | 52,203 | 42% |
| Income before income taxes | 65,352 | 50,668 | 29% |
| Income taxes provision | 22,446 | 16,206 | 39% |
| NET INCOME | $42,906 | $34,462 | 25% |
| PER COMMON SHARE INFORMATION: | |||
| Basic income per common share | $0.55 | $0.49 | 13% |
| Diluted income per common share | $0.55 | $0.48 | 13% |
| WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | |||
| Basic | 78,229,069 | 70,992,117 | |
| Diluted | 78,575,728 | 71,193,058 | |
| SUMMARY OF FINANCIAL DATA | ||||||
| (Dollars In Thousands, Except Per Share Data) (Unaudited) | ||||||
| Quarter Ended | ||||||
| AVERAGE BALANCES | September 30, 2014 | June 30, 2014 | September 30, 2013 | |||
| Average Assets | $3,757,520 | $3,614,014 | $2,798,913 | |||
| Average Equity | 472,697 | 459,423 | 359,411 | |||
| Average Net Loans | 3,061,900 | 2,923,225 | 2,157,104 | |||
| Average Deposits | 3,017,301 | 2,896,815 | 2,219,333 | |||
| Average Time Deposits of $100,000 or more | 930,220 | 865,110 | 662,280 | |||
| Average FHLB & Other Borrowings | 150,696 | 150,280 | 123,386 | |||
| Average Interest Earning Assets | 3,469,161 | 3,337,010 | 2,632,406 | |||
| Nine Months Ended | ||||||
| AVERAGE BALANCES | September 30, 2014 | September 30, 2013 | ||||
| Average Assets | $3,666,133 | $2,764,759 | ||||
| Average Equity | 459,966 | 354,631 | ||||
| Average Net Loans | 2,955,695 | 2,111,912 | ||||
| Average Deposits | 2,930,010 | 2,175,442 | ||||
| Average Time Deposits of $100,000 or more | 889,179 | 610,173 | ||||
| Average FHLB & Other Borrowings | 164,640 | 141,046 | ||||
| Average Interest Earning Assets | 3,384,191 | 2,609,081 | ||||
| Quarter Ended | ||||||
| PROFITABILITY | September 30, 2014 | June 30, 2014 | September 30, 2013 | |||
| Annualized Return on Average Assets | 1.61% | 1.62% | 1.62% | |||
| Annualized Return on Average Equity | 12.80% | 12.77% | 12.61% | |||
| Efficiency Ratio | 50.12% | 52.38% | 51.66% | |||
| Annualized Operating Expense/Average Assets | 2.47% | 2.72% | 2.55% | |||
| Annualized Net Interest Margin | 4.26% | 4.35% | 4.08% | |||
| Nine Months Ended | ||||||
| PROFITABILITY | September 30, 2014 | September 30, 2013 | ||||
| Annualized Return on Average Assets | 1.56% | 1.66% | ||||
| Annualized Return on Average Equity | 12.44% | 12.96% | ||||
| Efficiency Ratio | 53.12% | 50.75% | ||||
| Annualized Operating Expense/Average Assets | 2.69% | 2.52% | ||||
| Annualized Net Interest Margin | 4.28% | 4.02% | ||||
| DEPOSIT COMPOSITION |
September 30, 2014 |
Cost of Funds |
June 30, 2014 |
Cost of Funds |
September 30 ,2013 |
Cost of Funds |
| Noninterest Bearing Demand Deposits | 28.7% | 0.00% | 32.0% | 0.00% | 29.1% | 0.00% |
| Savings & Interest Checking | 4.9% | 1.31% | 5.4% | 1.19% | 5.7% | 1.40% |
| Money Market Deposits | 24.3% | 0.68% | 25.7% | 0.66% | 25.8% | 0.63% |
| Time Deposits of $100,000 or More | 34.3% | 0.72% | 29.0% | 0.60% | 30.3% | 0.67% |
| Other Time Deposits | 7.8% | 0.79% | 8.0% | 0.77% | 9.1% | 0.82% |
| Total Deposits | 100.0% | 0.53% | 100.0% | 0.48% | 100.0% | 0.53% |
| CAPITAL RATIOS | September 30, 2014 | June 30, 2014 | September 30 ,2013 | |||
| Tier 1 Leverage Ratio | 12.72% | 12.89% | 14.83% | |||
| Tier 1 Risk-Based Capital Ratio | 14.37% | 15.05% | 18.24% | |||
| Total Risk-Based Capital Ratio | 15.63% | 16.31% | 19.50% | |||
| Total Shareholders' Equity | $475,708 | $464,769 | $364,316 | |||
| Book Value Per Common Share | $6.07 | $5.94 | $5.15 | |||
| Tangible Common Equity Per Common Share * | $5.16 | $5.02 | $5.04 | |||
| Tangible Common Equity to Tangible Assets ** | 10.45% | 10.88% | 12.63% | |||
| * 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 | |||||
| September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | September 30, 2013 | |
| Balance at Beginning of Period | $52,669 | $53,464 | $53,563 | $52,397 | $54,937 |
| Provision for Losses on Loans | -- | -- | -- | -- | -- |
| Recoveries on Loans Previously Charged-off | 2,222 | 1,008 | 1,538 | 2,717 | 662 |
| Gross Loan Charge-offs | (1,775) | (1,803) | (1,637) | (1,551) | (3,202) |
| Balance at End of Period | $53,116 | $52,669 | $53,464 | $53,563 | $52,397 |
| Net Loan Charge-offs/Average Net Loans | -0.01% | 0.03% | 0.00% | -0.04% | 0.12% |
| Charge-offs/Average Total Loans | 0.06% | 0.06% | 0.06% | 0.06% | 0.15% |
| Allowance for Loan Losses/Gross Loans* | 1.67% | 1.77% | 1.86% | 1.90% | 2.38% |
| Allowance for Loan Losses/Non-accrual Loans | 118.29% | 124.34% | 124.02% | 144.50% | 158.57% |
| Allowance for Loan Losses/Non-performing Loans | 118.29% | 124.34% | 124.02% | 143.85% | 158.57% |
| Allowance for Loan Losses/Non-performing Assets | 103.20% | 107.41% | 102.66% | 119.46% | 155.06% |
| Allowance for Loan Losses/Classified Loans | 48.22% | 34.01% | 34.01% | 34.01% | 38.80% |
| * Excluding held-for-sale loans | |||||
| NON-PERFORMING ASSETS | |||||
| (Dollars In Thousands, Net of SBA Guaranty) | Quarter Ended | ||||
| (Unaudited) | September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | September 30, 2013 |
| Non-accrual Loans | $44,905 | $42,358 | $43,109 | $37,068 | $33,043 |
| Loans 90 days or more past due and still accruing | -- | -- | -- | 168 | -- |
| Total Non-performing Loans | 44,905 | 42,358 | 43,109 | 37,236 | 33,043 |
| Total OREO | 6,565 | 6,676 | 8,969 | 7,600 | 748 |
| Total Non-performing Assets | $51,470 | $49,034 | $52,078 | $44,836 | $33,791 |
| Total Non-performing Loans/Gross Loans | 1.41% | 1.42% | 1.48% | 1.30% | 1.46% |
| Total Non-performing Assets/Total Assets | 1.31% | 1.33% | 1.43% | 1.24% | 1.19% |
| ALLOWANCE FOR OFF-BALANCE SHEET ITEMS | |||
| (Dollars In Thousands) (Unaudited) | Quarter Ended | ||
| September 30, 2014 | June 30, 2014 | September 30, 2013 | |
| Balance at beginning of period | $1,061 | $1,061 | $1,023 |
| Credit for losses on off-balance sheet items | -- | -- | -- |
| Balance at end of period | $1,061 | $1,061 | $1,023 |
| Nine Months Ended | |||
| September 30, 2014 | September 30, 2013 | ||
| Balance at beginning of period | $1,061 | $1,023 | |
| Credit for losses on off-balance sheet items | -- | -- | |
| Balance at end of period | $1,061 | $1,023 | |
| WILSHIRE BANCORP, INC. AND SUBSIDIARIES | |||||||||
| AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID | |||||||||
| (Dollars In Thousands) (Unaudited) | |||||||||
| For the Quarter Ended | |||||||||
| September 30, 2014 | June 30, 2014 | September 30, 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 | $2,582,668 | $32,868 | 5.09% | $2,497,372 | $31,753 | 5.09% | $1,858,507 | $23,105 | 4.97% |
| Commercial Loans | 477,493 | 5,381 | 4.51% | 421,163 | 5,120 | 4.86% | 350,379 | 3,996 | 4.56% |
| Consumer Loans | 10,942 | 110 | 4.02% | 13,426 | 133 | 3.96% | 9,032 | 71 | 3.14% |
| Total Gross Loans | 3,071,103 | 38,359 | 5.00% | 2,931,961 | 37,006 | 5.05% | 2,217,918 | 27,172 | 4.90% |
| Deferred Fees and Costs \ Loan Fees | (9,203) | 858 | (8,736) | 987 | (6,077) | 741 | |||
| Total Loans * | 3,061,900 | 39,217 | 5.12% | 2,923,225 | 37,993 | 5.20% | 2,211,841 | 27,913 | 5.05% |
| INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS: | |||||||||
| Investment Securities** | 348,663 | 2,018 | 2.51% | 338,060 | 2,023 | 2.60% | 312,313 | 1,879 | 2.64% |
| Deposits Held In Other Institutions | 18,584 | 66 | 1.42% | 20,539 | 70 | 1.36% | -- | -- | 0.00% |
| Federal Funds Sold & Others | 40,014 | 25 | 0.25% | 55,186 | 22 | 0.16% | 108,252 | 148 | 0.55% |
| Total Investment Securities and Other Earning Assets | 407,261 | 2,109 | 2.24% | 413,785 | 2,115 | 2.21% | 420,565 | 2,027 | 2.10% |
| TOTAL INTEREST-EARNING ASSETS | $3,469,161 | $41,326 | 4.79% | $3,337,010 | $40,108 | 4.83% | $2,632,406 | $29,940 | 4.58% |
| Total Non-Interest Earning Assets | 288,359 | 277,004 | 166,507 | ||||||
| TOTAL ASSETS | $3,757,520 | $3,614,014 | $2,798,913 | ||||||
| INTEREST BEARING LIABILITIES | |||||||||
| INTEREST-BEARING DEPOSITS: | |||||||||
| Money Market | $775,914 | $1,322 | 0.68% | $770,512 | $1,276 | 0.66% | $590,669 | $929 | 0.63% |
| NOW | 30,728 | 15 | 0.20% | 34,812 | 16 | 0.18% | 27,507 | 13 | 0.19% |
| Savings | 124,674 | 495 | 1.59% | 120,274 | 445 | 1.48% | 101,204 | 437 | 1.73% |
| Time Deposits of $100,000 or More | 930,220 | 1,681 | 0.72% | 865,110 | 1,296 | 0.60% | 662,280 | 1,109 | 0.67% |
| Other Time Deposits | 236,724 | 468 | 0.79% | 235,907 | 453 | 0.77% | 212,848 | 435 | 0.82% |
| Total Interest Bearing Deposits | 2,098,260 | 3,981 | 0.76% | 2,026,615 | 3,486 | 0.69% | 1,594,508 | 2,923 | 0.73% |
| BORROWINGS: | |||||||||
| FHLB Advances and Other Borrowings | 150,696 | 146 | 0.39% | 150,280 | 67 | 0.18% | 123,386 | 37 | 0.12% |
| Junior Subordinated Debentures | 71,687 | 431 | 2.41% | 71,631 | 426 | 2.38% | 61,857 | 284 | 1.84% |
| Total Borrowings | 222,383 | 577 | 1.04% | 221,911 | 493 | 0.89% | 185,243 | 321 | 0.69% |
| TOTAL INTEREST BEARING LIABILITIES | $2,320,643 | $4,558 | 0.79% | $2,248,526 | $3,979 | 0.71% | $1,779,751 | $3,244 | 0.73% |
| Non-Interest Bearing Deposits | 919,041 | 870,200 | 624,825 | ||||||
| Other Liabilities | 45,139 | 35,865 | 34,926 | ||||||
| Shareholders' Equity | 472,697 | 459,423 | 359,411 | ||||||
| TOTAL LIABILITIES AND EQUITY | $3,757,520 | $3,614,014 | $2,798,913 | ||||||
| NET INTEREST INCOME | $36,768 | $36,129 | $26,696 | ||||||
| . | |||||||||
| NET INTEREST SPREAD | 4.00% | 4.12% | 3.85% | ||||||
| NET INTEREST MARGIN | 4.26% | 4.35% | 4.08% | ||||||
| * 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 Nine Months Ended | ||||||
| September 30, 2014 | September 30, 2013 | |||||
| Average | Interest | Average | Average | Interest | Average | |
| Balance | Income/ | Yield/ | Balance | Income/ | Yield/ | |
| INTEREST EARNING ASSETS | Expense | Rate | Expense | Rate | ||
| LOANS: | ||||||
| Real Estate Loans | $2,509,417 | $95,630 | 5.08% | $1,816,439 | $67,281 | 4.94% |
| Commercial Loans | 442,878 | 15,419 | 4.64% | 348,637 | 12,020 | 4.60% |
| Consumer Loans | 12,020 | 361 | 4.00% | 11,039 | 226 | 2.73% |
| Total Gross Loans | 2,964,315 | 111,410 | 5.01% | 2,176,115 | 79,527 | 4.87% |
| Deferred Fees and Costs \ Loan Fees | (8,620) | 2,901 | (5,386) | 2,241 | ||
| Total Loans * | 2,955,695 | 114,311 | 5.16% | 2,170,729 | 81,768 | 5.02% |
| INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS: | ||||||
| Investment Securities** | 345,414 | 6,142 | 2.57% | 319,981 | 5,347 | 2.47% |
| Deposits Held In Other Institutions | 20,037 | 205 | 1.36% | -- | -- | 0.00% |
| Federal Funds Sold & Others | 63,045 | 129 | 0.27% | 118,371 | 437 | 0.49% |
| Total Investment Securities and Other Earning Assets | 428,496 | 6,476 | 2.18% | 438,352 | 5,784 | 1.93% |
| TOTAL INTEREST-EARNING ASSETS | $3,384,191 | $120,787 | 4.78% | $2,609,081 | $87,552 | 4.50% |
| Total Non-Interest Earning Assets | 281,942 | 155,678 | ||||
| TOTAL ASSETS | $3,666,133 | $2,764,759 | ||||
| INTEREST BEARING LIABILITIES | ||||||
| INTEREST-BEARING DEPOSITS: | ||||||
| Money Market | $777,825 | $3,900 | 0.67% | $610,539 | $2,875 | 0.63% |
| NOW | 32,536 | 46 | 0.19% | 27,132 | 40 | 0.20% |
| Savings | 119,946 | 1,416 | 1.57% | 101,012 | 1,349 | 1.78% |
| Time Deposits of $100,000 or More | 889,179 | 4,462 | 0.67% | 610,173 | 2,916 | 0.64% |
| Other Time Deposits | 237,865 | 1,319 | 0.74% | 223,905 | 1,342 | 0.80% |
| Total Interest Bearing Deposits | 2,057,351 | 11,143 | 0.72% | 1,572,761 | 8,522 | 0.72% |
| BORROWINGS: | ||||||
| FHLB Advances and Other Borrowings | 164,640 | 287 | 0.23% | 141,046 | 181 | 0.17% |
| Junior Subordinated Debentures | 71,631 | 1,287 | 2.40% | 61,857 | 847 | 1.83% |
| Total Borrowings | 236,271 | 1,574 | 0.89% | 202,903 | 1,028 | 0.68% |
| TOTAL INTEREST BEARING LIABILITIES | $2,293,622 | $12,717 | 0.74% | $1,775,664 | $9,550 | 0.72% |
| Non-Interest Bearing Deposits | 872,659 | 602,681 | ||||
| Other Liabilities | 39,886 | 31,783 | ||||
| Shareholders' Equity | 459,966 | 354,631 | ||||
| TOTAL LIABILITIES AND EQUITY | $3,666,133 | $2,764,759 | ||||
| NET INTEREST INCOME | $108,070 | $78,002 | ||||
| . | ||||||
| NET INTEREST SPREAD | 4.04% | 3.79% | ||||
| NET INTEREST MARGIN | 4.28% | 4.02% | ||||
| * 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 | |||
| September 30, 2014 | June 30, 2014 | September 30, 2013 | |
| Total shareholders' equity | $475,708 | $464,769 | $364,316 |
| Goodwill and other intangible assets, net | (71,888) | (72,206) | (7,502) |
| Tangible common equity | $403,820 | $392,563 | $356,814 |
| Total assets | $3,935,798 | $3,681,261 | $2,832,514 |
| Goodwill and other intangible assets, net | (71,888) | (72,206) | (7,502) |
| Tangible assets | $3,863,910 | $3,609,055 | $2,825,012 |
| Common shares outstanding | 78,306,839 | 78,276,758 | 70,770,019 |
| * Tangible Common Equity and Tangible Assets 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 | |||