LOS ANGELES, April 20, 2015 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq:WIBC) (the "Company"), the holding company for Wilshire Bank (the "Bank"), today reported net income of $18.6 million, or $0.24 per diluted common share, for the quarter ended March 31, 2015. This compares to net income of $13.1 million, or $0.17 per diluted common share, for the same period of the prior year, and net income of $16.1 million, or $0.20 per diluted common share, for the fourth quarter of 2014.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "Our first quarter performance was driven by strong, well-diversified loan production, stable expense levels and solid credit quality. We had $398 million in loan originations in the quarter, with strong contributions coming from our commercial real estate, commercial, SBA, and warehouse lending businesses. We also had strong deposit inflows that resulted in non-interest bearing demand deposits increasing by $82 million during the quarter, with more than half of the increase coming from new deposit relationships.
"During the first quarter, we made excellent progress on two key strategic initiatives: building our residential mortgage lending business with the origination platform we acquired from Bank of Manhattan and expanding our ability to develop commercial banking relationships in the Southeastern United States with the opening of a new branch in LaGrange, Georgia. We believe these initiatives will increase our production of residential mortgage and commercial and industrial loans, and help us build a stronger and more diversified franchise," said Mr. Yoo.
Q1 2015 Summary
- Net income totaled $18.6 million, or $0.24 per diluted common share, for the first quarter of 2015
- Total net revenue of $51.8 million for the first quarter of 2015, an increase of 12.3% from the first quarter of 2014
- Return on average assets of 1.75% and return on average equity of 14.89% for the first quarter of 2015
- Net interest margin of 3.69% for the first quarter of 2015, a decrease from 4.00% for the fourth quarter of 2014
- Loans receivable (net of deferred fees and costs) totaled $3.51 billion at March 31, 2015, an increase of 22% from $2.87 billion at March 31, 2014
- Demand deposits totaled $997.8 million at March 31, 2015, an increase of 9% from $915.4 million at December 31, 2014
- Total deposits were $3.64 billion at March 31, 2015, an increase of 24% from $2.92 billion at March 31, 2014
- Continued stability in asset quality resulted in no provision for losses on loans and loan commitments for the first quarter of 2015
- Acquired Bank of Manhattan's Mortgage Lending Division during the first quarter of 2015
STATEMENT OF OPERATIONS
Net interest income before provision for losses on loans and loan commitments totaled $36.5 million for the first quarter of 2015, an increase of 3.7% from $35.2 million for the first quarter of 2014, and a decrease of 2.6% from $37.5 million for the fourth quarter of 2014. The decrease from the prior quarter is primarily attributable to a decline in net interest margin. Discount accretion income from loans acquired from Saehan Bancorp and BankAsiana totaled $2.0 million for the first quarter of 2015, compared to $2.4 million for the fourth quarter of 2014.
Net interest margin was 3.69% for the first quarter of 2015, compared to 4.00% for the fourth quarter of 2014, and 4.22% for the first quarter of 2014. Loan yields were 4.78% for the first quarter of 2015, compared with 5.09% for the fourth quarter of 2014, and 5.15% for the first quarter of 2014. Compared to the fourth quarter of 2014, the decrease in net interest margin and loan yield is attributable to a decline in discount accretion income on acquired loans, an increase in lower-yielding warehouse lines of credit, and a reduction in average loan yields as rates on new loan originations are lower than the rates on loans that are maturing or being paid down.
During the first quarter of 2015, the Company had a number of investment securities that matured or were called during the quarter which resulted in a significant increase in lower yielding average fed funds sold and other balances. Although these funds will be deployed back into higher yielding investments and loans, the increase in fed funds sold and other balances during the first quarter of 2015 was another contributing factor to the decline in on our net interest margin compared to the previous quarters.
The total cost of deposits was 0.58% for the first quarter of 2015, unchanged from the fourth quarter of 2014 and was 0.51% for the first quarter of 2014. Compared to the first quarter of 2014, the increase in the cost of deposits for the first quarter of 2015 was primarily due to an increase in rates paid on time deposit accounts.
Non-Interest Income
Total non-interest income was $15.3 million for the first quarter of 2015, compared to $11.0 million for the first quarter of 2014, and $9.9 million for the fourth quarter of 2014.
The Company recognized $6.8 million in net gain on sales of loans during the first quarter of 2015, which consisted of a $4.3 million gain on the sale of a non-accrual loan, $2.2 million of gains on sales of Small Business Administration ("SBA") loans, and $261,000 of gains on sales of residential mortgage loans. Net gain on sale of loans for the fourth quarter of 2014 was $3.5 million and consisted primarily of gains from the sale of SBA loans. During the first quarter of 2015, the Company sold $24.0 million in SBA loans, compared with $35.5 million sold during the fourth quarter of 2014.
Other non-interest income totaled $5.4 million for the first quarter of 2015, compared to $3.5 million for the first quarter of 2014, and $3.3 million for the fourth quarter of 2014. Other non-interest income in the first quarter of 2015 was positively impacted by a $1.6 million increase in the fair value of servicing assets and a $495,000 fair-value adjustment on mortgage banking derivatives.
Non-Interest Expense
Total non-interest expense was $22.9 million for the first quarter of 2015, compared with $26.3 million for the first quarter of 2014, and $23.5 million for the fourth quarter of 2014. The decrease in non-interest expense from the prior quarter was primarily due to a decline in other non-interest expenses.
Total salaries and employee benefits expense was $12.7 million for the first quarter of 2015, compared with $12.7 million for the first quarter of 2014, and $12.4 million for the fourth quarter of 2014.
Other non-interest expense for the first quarter of 2015 totaled $5.8 million, compared to $6.0 million for the first quarter of 2014, and $6.7 million for the fourth quarter of 2014. The decrease in other non-interest expense from the fourth quarter of 2014 was attributable to a reduction in SBA referral fees, OREO expenses, and consulting fees.
The Company's operating efficiency ratio was 44.3% for the first quarter of 2015, compared with 56.9% for the first quarter of 2014, and 49.5% for the fourth quarter of 2014.
BALANCE SHEET
Total loans receivable (net of deferred fees and costs) were $3.51 billion at March 31, 2015, compared to $3.31 billion at December 31, 2014. The increase in loans during the first quarter of 2015 was primarily driven by growth in real estate secured and commercial & industrial loans, particularly an increase in warehouse lines of credit.
The following table shows total loans receivable, loans held-for-sale, and total loans by loan type:
| Quarter Ended | |||||
| (Dollars In Thousands) (Unaudited) | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 |
| Construction | $ 26,117 | $ 21,248 | $ 40,062 | $ 43,292 | $ 42,124 |
| Real Estate Secured | 2,701,800 | 2,655,251 | 2,593,242 | 2,481,801 | 2,395,487 |
| Commercial & Industrial | 769,438 | 610,762 | 515,831 | 431,758 | 417,956 |
| Consumer | 15,465 | 21,036 | 12,810 | 13,044 | 16,072 |
| Total Loans Receivable * | 3,512,820 | 3,308,297 | 3,161,945 | 2,969,895 | 2,871,639 |
| Held-For-Sale Loans | 10,204 | 11,783 | 16,236 | 6,207 | 27,791 |
| Total Loans * | $ 3,523,024 | $ 3,320,080 | $ 3,178,181 | $ 2,976,102 | $ 2,899,430 |
| * Total loans receivable and total loans are net of deferred fees and costs as shown in the consolidated balance sheet presentation | |||||
The following table shows quarterly loan originations:
| Quarter Ended | ||||||||||
| (Dollars In Thousands) (Unaudited) | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | |||||
| Real Estate Secured | $ 138,145 | 35% | $ 184,477 | 56% | $ 191,272 | 48% | $ 170,042 | 60% | $ 96,266 | 49% |
| Commercial & Industrial | 59,837 | 15% | 73,194 | 22% | 89,166 | 22% | 31,058 | 11% | 36,619 | 18% |
| Consumer | 1,640 | 0% | 3,385 | 1% | 6,560 | 2% | 1,580 | 1% | 632 | 0% |
| SBA | 31,718 | 8% | 34,747 | 11% | 41,373 | 10% | 37,004 | 13% | 35,305 | 18% |
| Residential Mortgage | 11,357 | 3% | 8,632 | 4% | 20,791 | 5% | 9,325 | 3% | 19,063 | 10% |
| Warehouse Lines of Credit* | 155,000 | 39% | 23,000 | 6% | 50,000 | 13% | 33,000 | 12% | 10,000 | 5% |
| Total Loan Originations | $ 397,697 | 100% | $ 327,435 | 100% | $ 399,162 | 100% | $ 282,009 | 100% | $ 197,885 | 100% |
| * Warehouse lines of credit are reported as commercial and industrial loans on the consolidated balance sheet. | ||||||||||
Originations for the first quarter of 2015 totaled $397.7 million, compared to $327.4 million for the fourth quarter of 2014, and $197.9 million for the first quarter of 2014.
Total SBA loans held-for-sale at the end of the first quarter of 2015 were $7.7 million, compared to $11.1 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 $3.64 billion at March 31, 2015, compared with $3.40 billion at December 31, 2014. The increase in total deposits was primarily attributable to growth in non-interest bearing demand deposits and money market deposits.
CREDIT QUALITY
During the first quarter of 2015, the Company continued to experience general stability in asset quality and a low level of charge-offs. As a result, the Company determined that no provision for losses on loans and loan commitments was required for the first quarter of 2015. The allowance for loan losses totaled $48.2 million, or 1.37% of gross loans (excluding loans held-for-sale), at March 31, 2015, compared to $48.6 million, or 1.47% of gross loans (excluding loans held-for-sale), at December 31, 2014. Acquired loans, included in the allowance coverage ratios, were recorded at fair value and the remaining discount on these loans was approximately $19.9 million at March 31, 2015. The coverage ratio of the allowance for loan losses to non-performing assets was 120.63% at March 31, 2015, compared with 107.6% at December 31, 2014.
Non-Performing Loans
At March 31, 2015, total non-performing loans were $32.5 million, or 0.92% of total gross loans, compared to $37.3 million, or 1.12% of total gross loans, at December 31, 2014.
The following table shows total non-performing loans by loan type:
| NON-PERFORMING LOANS | Quarter Ended | ||||
| (Dollars In Thousands) (Unaudited) | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 |
| (Net of SBA Guaranty Portions) | |||||
| Real Estate Secured | $ 25,329 | $ 29,547 | $ 37,205 | $ 35,585 | $ 35,988 |
| Commercial & Industrial | 7,193 | 7,718 | 7,699 | 6,769 | 7,121 |
| Consumer | -- | -- | 1 | 4 | -- |
| Total Non-Performing Loans | $ 32,522 | $ 37,265 | $ 44,905 | $ 42,358 | $ 43,109 |
Net Charge-offs/Recoveries
During the first quarter of 2015, the Company had total gross charge-offs of $1.3 million and recoveries of $870,000, which resulted in total net charge-offs of $454,000 for the first quarter of 2015, compared to net charge-offs of $4.5 million for the fourth 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) | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 |
| Real Estate Secured | $ 325 | $ 5,461 | $ 1,161 | $ 782 | $ 672 |
| Commercial & Industrial | 999 | 852 | 614 | 1,021 | 964 |
| Consumer | -- | -- | -- | -- | 1 |
| Total Loan Charge-Offs | $ 1,324 | $ 6,313 | $ 1,775 | $ 1,803 | $ 1,637 |
| LOAN RECOVERIES | Quarter Ended | ||||
| (Dollars In Thousands) (Unaudited) | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 |
| Real Estate Secured | $ 193 | $ 199 | $ 1,688 | $ 586 | $ 1,028 |
| Commercial & Industrial | 667 | 1,620 | 534 | 408 | 510 |
| Consumer | 10 | 2 | -- | 14 | -- |
| Total Loan Recoveries | $ 870 | $ 1,821 | $ 2,222 | $ 1,008 | $ 1,538 |
Other measures of credit quality are shown in the following tables:
| DELINQUENT LOANS - By Days Past Due | Quarter Ended | ||||
| (Dollars In Thousands) (Unaudited) | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 |
| (Net of SBA Guaranty Portions) | |||||
| 30 - 59 Days Past Due | $ 7,375 | $ 5,165 | $ 4,137 | $ 4,556 | $ 5,756 |
| 60 - 89 Days Past Due | 421 | 1,820 | 4,002 | 2,992 | 1,526 |
| 90 Days, and still accruing | -- | -- | -- | -- | -- |
| Total Delinquent Loans | $ 7,796 | $ 6,985 | $ 8,139 | $ 7,548 | $ 7,282 |
| TROUBLED DEBT RESTRUCTURED LOANS ("TDR") | Quarter Ended | ||||
| (Dollars In Thousands) (Unaudited) | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 |
| (Net of SBA Guaranty Portions) | |||||
| Real Estate Secured | $ 28,612 | $ 25,096 | $ 31,313 | $ 33,349 | $ 34,565 |
| Commercial & Industrial | 11,682 | 12,014 | 11,425 | 5,542 | 5,563 |
| Total TDR Loans | $ 40,294 | $ 37,110 | $ 42,738 | $ 38,891 | $ 40,128 |
| LOAN CLASSIFICATIONS | Quarter Ended | ||||
| (Dollars In Thousands) (Unaudited) | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 |
| (Net of SBA Guaranty Portions) | |||||
| Special Mention | $ 81,049 | $ 76,906 | $ 62,929 | $ 88,382 | $ 101,627 |
| Substandard | 89,402 | 82,305 | 94,854 | 110,462 | 127,996 |
| Doubtful | 9,822 | 11,952 | 15,291 | 18,040 | 19,931 |
| Total Criticized and Classified Loans | $ 180,273 | $ 171,163 | $ 173,074 | $ 216,884 | $ 249,554 |
| Total Classified Loans | $ 99,224 | $ 94,257 | $ 110,145 | $ 128,502 | $ 147,927 |
CAPITAL RATIOS
As of March 31, 2015, 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, 2015 |
Well Capitalized Regulatory Requirements |
Total Excess Above Well Capitalized Requirements |
| Tier 1 Leverage Capital Ratio | 11.86% | 5.00% | $ 286,364 |
| Tier 1 Common Equity Risk-Based Capital Ratio | 11.58% | 6.50% | 187,824 |
| Tier 1 Risk-Based Capital Ratio | 13.38% | 8.00% | 199,216 |
| Total Risk-Based Capital Ratio | 14.64% | 10.00% | 171,532 |
| Tangible Common Equity To Tangible Assets * | 10.00% | N/A | N/A |
| Tangible Common Equity Per Common Share * | $ 5.54 | 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 April 21, 2015, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing 866-318-8618 (domestic) or 617-399-5137 (international) and providing passcode number 89927477.
ABOUT WILSHIRE BANCORP
Headquartered in Los Angeles, Wilshire Bancorp is the parent company of Wilshire Bank, which operates 34 branch offices in California, Texas, Georgia, New Jersey and New York, and 4 loan production offices in Atlanta, GA, Aurora, CO, Newark, CA, and Federal Way, 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 reports filed with or furnished to the Securities and Exchange Commission. Specific factors that could cause future results to differ materially from historical performance and these forward-looking statements include, but are not limited to: (1) loan production and sales, (2) credit quality, (3) the ability to expand net interest margin, (4) the ability to continue to attract low-cost deposits, (5) success of expansion efforts, (6) competition in the marketplace, (7) political developments, war or other hostilities, (8) changes in the interest rate environment, (9) the ability of our borrowers to repay their loans, (10) the ability to maintain capital requirements and adequate sources of liquidity, (11) effects of or changes in accounting policies, (12) legislative or regulatory changes or actions, (13) the ability to attract and retain key personnel, (14) the ability to receive dividends from our subsidiaries, (15) the ability to secure confidential information through the use of computer systems and telecommunications networks, (16) weakening in the economy, specifically the real estate market, either nationally or in the states in which we do business, (17) the integration of our acquired businesses, and (18) general economic conditions. The information in this press release speaks only as of the date of this release and Wilshire Bancorp specifically disclaims any duty to update the information in this press release, expect as required by applicable law. Additional information on these and other factors that could affect financial results are included in filings by Wilshire Bancorp with the Securities and Exchange Commission.
| CONSOLIDATED BALANCE SHEET | |||||
| (Dollars In Thousands) (Unaudited) | March 31, | December 31, | Three Months | March 31, | Twelve Months |
| 2015 | 2014 | % Change | 2014 | % Change | |
| ASSETS: | |||||
| Cash and due from banks | $ 353,438 | $ 233,699 | 51% | $ 160,999 | 120% |
| Federal funds sold and other cash equivalents | 164 | 254 | -35% | 7,301 | -98% |
| Total Cash and Cash Equivalents | 353,602 | 233,953 | 51% | 168,300 | 110% |
| Deposits held in other financial institutions | 8,000 | 8,000 | 0% | 21,006 | -62% |
| Investment securities available for sale | 329,343 | 388,367 | -15% | 342,438 | -4% |
| Investment securities held to maturity | 25 | 26 | -4% | 32 | -22% |
| Total Investment Securities | 329,368 | 388,393 | -15% | 342,470 | -4% |
| Total Loans Held-For-Sale | 10,204 | 11,783 | -13% | 27,791 | -63% |
| Real estate construction | 26,117 | 21,248 | 23% | 42,124 | -38% |
| Residential real estate | 171,117 | 183,665 | -7% | 169,810 | 1% |
| Commercial real estate | 2,530,683 | 2,471,586 | 2% | 2,225,677 | 14% |
| Commercial and industrial | 769,438 | 610,762 | 26% | 417,956 | 84% |
| Consumer | 15,465 | 21,036 | -26% | 16,072 | -4% |
| Total loans receivable, net of deferred fees and costs | 3,512,820 | 3,308,297 | 6% | 2,871,639 | 22% |
| Allowance for loan losses | (48,170) | (48,624) | -1% | (53,464) | -10% |
| Loans Receivable, Net of Allowance for Loan Losses | 3,464,650 | 3,259,673 | 6% | 2,818,175 | 23% |
| Accrued interest receivable | 8,581 | 8,792 | -2% | 8,293 | 3% |
| Due from customers on acceptances | 6,472 | 5,611 | 15% | 889 | 628% |
| Other real estate owned | 7,411 | 7,922 | -6% | 8,969 | -17% |
| Premises and equipment | 14,058 | 13,881 | 1% | 13,313 | 6% |
| Federal home loan bank (FHLB) stock, at cost | 16,539 | 16,539 | 0% | 15,983 | 3% |
| Cash surrender value of life insurance | 23,470 | 23,330 | 1% | 22,661 | 4% |
| Investment in affordable housing partnerships | 43,134 | 44,077 | -2% | 42,459 | 2% |
| Deferred income taxes | 16,646 | 22,271 | -25% | 34,391 | -52% |
| Servicing assets | 19,813 | 18,031 | 10% | 17,536 | 13% |
| Goodwill | 67,473 | 67,473 | 0% | 67,528 | 0% |
| FDIC indemnification asset | -- | -- | 0% | 2,169 | -100% |
| Other assets | 23,857 | 25,740 | -7% | 22,533 | 6% |
| TOTAL ASSETS | $ 4,413,278 | $ 4,155,469 | 6% | $ 3,634,466 | 21% |
| LIABILITIES AND SHAREHOLDERS' EQUITY: | |||||
| Non-interest bearing demand deposits | $ 997,803 | $ 915,413 | 9% | $ 869,598 | 15% |
| Savings and interest checking | 161,234 | 160,717 | 0% | 156,587 | 3% |
| Money market deposits | 886,092 | 765,892 | 16% | 799,299 | 11% |
| Time deposits in denomination of $100,000 or more | 1,322,743 | 1,291,844 | 2% | 860,697 | 54% |
| Other time deposits | 267,294 | 267,393 | 0% | 237,028 | 13% |
| Total Deposits | 3,635,166 | 3,401,259 | 7% | 2,923,209 | 24% |
| FHLB borrowings | 150,000 | 150,000 | 0% | 150,292 | 0% |
| Acceptance outstanding | 6,472 | 5,611 | 15% | 889 | 628% |
| Junior subordinated debentures | 71,837 | 71,779 | 0% | 71,610 | 0% |
| Accrued interest payable | 2,406 | 2,228 | 8% | 2,462 | -2% |
| Other liabilities | 41,818 | 35,181 | 19% | 34,429 | 21% |
| Total Liabilities | 3,907,699 | 3,666,058 | 7% | 3,182,891 | 23% |
| Common stock | 232,207 | 232,001 | 0% | 230,979 | 1% |
| Retained earnings | 267,660 | 252,957 | 6% | 218,806 | 22% |
| Accumulated other comprehensive income | 5,712 | 4,453 | 28% | 1,790 | 219% |
| Total Shareholders' Equity | 505,579 | 489,411 | 3% | 451,575 | 12% |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 4,413,278 | $ 4,155,469 | 6% | $ 3,634,466 | 21% |
| CONSOLIDATED STATEMENT OF OPERATIONS | |||||
| (Dollars In Thousands, Except Per Share Data) (Unaudited) | |||||
| Quarter Ended | Three Mths | Quarter Ended | Twelve Mths | ||
| March 31, 2015 | December 31, 2014 | % Change | March 31, 2014 | % Change | |
| INTEREST INCOME | |||||
| Interest and fees on loans | $ 40,088 | $ 40,709 | -2% | $ 37,101 | 8% |
| Interest on investment securities | 1,968 | 2,053 | -4% | 2,101 | -6% |
| Interest on federal funds sold and others | 192 | 155 | 24% | 151 | 27% |
| Total Interest Income | 42,248 | 42,917 | -2% | 39,353 | 7% |
| INTEREST EXPENSE | |||||
| Deposits | 5,097 | 4,783 | 7% | 3,676 | 39% |
| FHLB advances and other borrowings | 660 | 667 | -1% | 504 | 31% |
| Total Interest Expense | 5,757 | 5,450 | 6% | 4,180 | 38% |
| Net interest income before provision for losses on loans and loan commitments | 36,491 | 37,467 | -3% | 35,173 | 4% |
| Provision for losses on loans and loan commitments | -- | -- | 0% | -- | 0% |
| Net interest income after provision for losses on loans and loan commitments | 36,491 | 37,467 | -3% | 35,173 | 4% |
| NONINTEREST INCOME | |||||
| Service charges on deposits | 3,107 | 3,105 | 0% | 3,146 | -1% |
| Gain on sales of loans, net | 6,806 | 3,528 | 93% | 4,329 | 57% |
| Gain on sale/call of investment securities | -- | -- | 0% | -- | 0% |
| Other | 5,354 | 3,280 | 63% | 3,511 | 52% |
| Total Noninterest Income | 15,267 | 9,913 | 54% | 10,986 | 39% |
| NONINTEREST EXPENSES | |||||
| Salaries and employee benefits | 12,665 | 12,359 | 2% | 12,655 | 0% |
| Occupancy and equipment | 3,373 | 3,385 | 0% | 3,309 | 2% |
| Data processing | 1,042 | 1,030 | 1% | 963 | 8% |
| Merger related costs | -- | -- | 0% | 3,364 | -100% |
| Other | 5,829 | 6,694 | -13% | 5,966 | -2% |
| Total Noninterest Expenses | 22,909 | 23,468 | -2% | 26,257 | -13% |
| Income before income taxes | 28,849 | 23,912 | 21% | 19,902 | 45% |
| Income taxes provision | 10,230 | 7,809 | 31% | 6,789 | 51% |
| NET INCOME | $ 18,619 | $ 16,103 | 16% | $ 13,113 | 42% |
| PER COMMON SHARE INFORMATION: | |||||
| Basic income per common share | $ 0.24 | $ 0.21 | 16% | $ 0.17 | 42% |
| Diluted income per common share | $ 0.24 | $ 0.20 | 16% | $ 0.17 | 42% |
| WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | |||||
| Basic | 78,326,505 | 78,315,686 | 78,115,779 | ||
| Diluted | 78,655,365 | 78,628,965 | 78,496,106 | ||
| SUMMARY OF FINANCIAL DATA | ||||||
| (Dollars In Thousands, Except Per Share Data) (Unaudited) | ||||||
| Quarter Ended | ||||||
| AVERAGE BALANCES | March 31, 2015 | December 31, 2014 | March 31, 2014 | |||
| Average Assets | $ 4,255,625 | $ 4,049,930 | $ 3,631,268 | |||
| Average Equity | 500,097 | 485,482 | 447,188 | |||
| Average Net Loans | 3,352,433 | 3,200,538 | 2,881,650 | |||
| Average Deposits | 3,490,282 | 3,292,557 | 2,878,950 | |||
| Average Time Deposits of $100,000 or more | 1,297,961 | 1,211,738 | 874,039 | |||
| Average FHLB & Other Borrowings | 150,655 | 150,000 | 193,413 | |||
| Average Interest Earning Assets | 3,976,435 | 3,764,271 | 3,346,954 | |||
| Quarter Ended | ||||||
| PROFITABILITY | March 31, 2015 | December 31, 2014 | March 31, 2014 | |||
| Annualized Return on Average Assets | 1.75% | 1.59% | 1.44% | |||
| Annualized Return on Average Equity | 14.89% | 13.27% | 11.73% | |||
| Efficiency Ratio | 44.26% | 49.53% | 56.88% | |||
| Annualized Operating Expense/Average Assets | 2.15% | 2.32% | 2.89% | |||
| Annualized Net Interest Margin | 3.69% | 4.00% | 4.22% | |||
| As Of | ||||||
| March 31, 2015 | December 31, 2014 | March 31, 2014 | ||||
| DEPOSIT COMPOSITION | Percent of Total | Rate | Percent of Total | Rate | Percent of Total | Rate |
| Noninterest Bearing Demand Deposits | 27.4% | 0.00% | 26.9% | 0.00% | 29.7% | 0.00% |
| Savings & Interest Checking | 4.4% | 1.31% | 4.7% | 1.33% | 5.4% | 1.28% |
| Money Market Deposits | 24.4% | 0.67% | 22.5% | 0.71% | 27.3% | 0.66% |
| Time Deposits of $100,000 or More | 36.4% | 0.80% | 38.0% | 0.79% | 29.4% | 0.68% |
| Other Time Deposits | 7.4% | 0.86% | 7.9% | 0.84% | 8.1% | 0.67% |
| Total Deposits | 100.0% | 0.58% | 100.0% | 0.58% | 100.0% | 0.51% |
| As Of | ||||||
| CAPITAL RATIOS | March 31, 2015 | December 31, 2014 | March 31, 2014 | |||
| Tier 1 Leverage Ratio | 11.86% | 12.11% | 12.50% | |||
| Tier 1 Common Equity Risk-Based Capital Ratio | 11.58% | 12.09% | 12.60% | |||
| Tier 1 Risk-Based Capital Ratio | 13.38% | 14.13% | 14.92% | |||
| Total Risk-Based Capital Ratio | 14.64% | 15.38% | 16.17% | |||
| Total Shareholders' Equity | $ 505,579 | $ 489,411 | $ 451,575 | |||
| Book Value Per Common Share | $ 6.45 | $ 6.25 | $ 5.77 | |||
| Tangible Common Equity Per Common Share * | $ 5.54 | $ 5.33 | $ 4.84 | |||
| Tangible Common Equity to Tangible Assets ** | 10.00% | 10.23% | 10.64% | |||
| * 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, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | |
| Balance at Beginning of Period | $ 48,624 | $ 53,116 | $ 52,669 | $ 53,464 | $ 53,563 |
| Provision for Losses on Loans | -- | -- | -- | -- | -- |
| Recoveries on Loans Previously Charged-off | 870 | 1,821 | 2,222 | 1,008 | 1,538 |
| Gross Loan Charge-offs | (1,324) | (6,313) | (1,775) | (1,803) | (1,637) |
| Balance at End of Period | $ 48,170 | $ 48,624 | $ 53,116 | $ 52,669 | $ 53,464 |
| Net Loan Charge-offs/Average Net Loans | 0.01% | 0.14% | -0.01% | 0.03% | 0.00% |
| Charge-offs/Average Total Loans | 0.04% | 0.20% | 0.06% | 0.06% | 0.06% |
| Allowance for Loan Losses/Gross Loans* | 1.37% | 1.47% | 1.67% | 1.77% | 1.86% |
| Allowance for Loan Losses/Non-accrual Loans | 148.12% | 130.48% | 118.29% | 124.34% | 124.02% |
| Allowance for Loan Losses/Non-performing Loans | 148.12% | 130.48% | 118.29% | 124.34% | 124.02% |
| Allowance for Loan Losses/Non-performing Assets | 120,63% | 107.61% | 103.20% | 107.41% | 102.66% |
| Allowance for Loan Losses/Classified Loans | 48.55% | 51.59% | 48.22% | 34.01% | 34.01% |
| * Excluding held-for-sale loans | |||||
| NON-PERFORMING ASSETS | |||||
| (Dollars In Thousands, Net of SBA Guaranty) | Quarter Ended | ||||
| (Unaudited) | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 |
| Non-accrual Loans | $ 32,522 | $ 37,265 | $ 44,905 | $ 42,358 | $ 43,109 |
| Loans 90 days or more past due and still accruing | -- | -- | -- | -- | -- |
| Total Non-performing Loans | 32,522 | 37,265 | 44,905 | 42,358 | 43,109 |
| Total OREO | 7,411 | 7,922 | 6,565 | 6,676 | 8,969 |
| Total Non-performing Assets | $ 39,933 | $ 45,187 | $ 51,470 | $ 49,034 | $ 52,078 |
| Total Non-performing Loans/Gross Loans | 0.92% | 1.12% | 1.41% | 1.42% | 1.48% |
| Total Non-performing Assets/Total Assets | 0.90% | 1.09% | 1.31% | 1.33% | 1.43% |
| ALLOWANCE FOR OFF-BALANCE SHEET ITEMS | |||
| (Dollars In Thousands) (Unaudited) | |||
| Quarter Ended | |||
| March 31, 2015 | December 31, 2014 | March 31, 2014 | |
| Balance at beginning of period | $ 1,023 | $ 1,023 | $ 1,023 |
| Provision for losses on off-balance sheet items | -- | -- | -- |
| Balance at end of period | $ 1,023 | $ 1,023 | $ 1,023 |
| WILSHIRE BANCORP, INC. AND SUBSIDIARIES | |||||||||
| AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID | |||||||||
| (Dollars In Thousands) (Unaudited) | |||||||||
| For the Quarter Ended | |||||||||
| March 31, 2015 | December 31, 2014 | March 31, 2014 | |||||||
| 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 | $ 2,732,436 | $ 32,565 | 4.77% | $ 2,666,855 | $ 33,339 | 5.00% | $ 2,447,610 | $ 31,008 | 5.07% |
| Commercial Loans | 616,848 | 6,282 | 4.07% | 530,293 | 5,717 | 4.31% | 430,076 | 4,919 | 4.58% |
| Consumer Loans | 13,141 | 116 | 3.53% | 13,162 | 129 | 3.92% | 11,873 | 118 | 3.98% |
| Total Gross Loans | 3,362,425 | 38,963 | 4.64% | 3,210,310 | 39,185 | 4.88% | 2,889,559 | 36,045 | 4.99% |
| Deferred Fees and Costs \ Loan Fees | (9,992) | 1,125 | (9,772) | 1,524 | (7,909) | 1,056 | |||
| Total Loans * | 3,352,433 | 40,088 | 4.78% | 3,200,538 | 40,709 | 5.09% | 2,881,650 | 37,101 | 5.15% |
| INVESTMENT SECURITIES AND | |||||||||
| OTHER INTEREST-EARNING ASSETS: | |||||||||
| Investment Securities** | 359,302 | 1,968 | 2.38% | 366,229 | 2,053 | 2.43% | 349,701 | 2,101 | 2.60% |
| Deposits Held In Other Institutions | 8,000 | 32 | 1.60% | 8,402 | 34 | 1.62% | 21,019 | 69 | 1.31% |
| Federal Funds Sold & Others | 256,700 | 160 | 0.25% | 189,102 | 121 | 0.26% | 94,584 | 82 | 0.35% |
| Total Investment Securities and | |||||||||
| Other Earning Assets | 624,002 | 2,160 | 1.49% | 563,733 | 2,208 | 1.69% | 465,304 | 2,252 | 2.09% |
| TOTAL INTEREST-EARNING ASSETS | $ 3,976,435 | $ 42,248 | 4.27% | $ 3,764,271 | $ 42,917 | 4.58% | $ 3,346,954 | $ 39,353 | 4.72% |
| Total Non-Interest Earning Assets | 279,190 | 285,659 | 284,314 | ||||||
| TOTAL ASSETS | $ 4,255,625 | $ 4,049,930 | $ 3,631,268 | ||||||
| INTEREST BEARING LIABILITIES | |||||||||
| INTEREST-BEARING DEPOSITS: | |||||||||
| Money Market | $ 844,576 | $ 1,406 | 0.67% | $ 748,031 | $ 1,320 | 0.71% | $ 784,219 | $ 1,301 | 0.66% |
| NOW | 29,230 | 17 | 0.23% | 31,364 | 17 | 0.22% | 32,019 | 15 | 0.19% |
| Savings | 129,239 | 502 | 1.55% | 127,610 | 510 | 1.60% | 120,908 | 476 | 1.58% |
| Time Deposits of $100,000 or More | 1,297,961 | 2,603 | 0.80% | 1,211,738 | 2,387 | 0.79% | 874,039 | 1,485 | 0.68% |
| Other Time Deposits | 265,626 | 569 | 0.86% | 262,777 | 549 | 0.84% | 236,826 | 399 | 0.67% |
| Total Interest Bearing Deposits | 2,566,632 | 5,097 | 0.79% | 2,381,520 | 4,783 | 0.80% | 2,048,011 | 3,676 | 0.72% |
| BORROWINGS: | |||||||||
| FHLB Advances and Other Borrowings | 150,655 | 232 | 0.62% | 150,000 | 235 | 0.63% | 193,413 | 74 | 0.15% |
| Junior Subordinated Debentures | 71,799 | 428 | 2.38% | 71,742 | 432 | 2.41% | 71,573 | 430 | 2.40% |
| Total Borrowings | 222,454 | 660 | 1.19% | 221,742 | 667 | 1.20% | 264,986 | 504 | 0.76% |
| TOTAL INTEREST BEARING LIABILITIES | $ 2,789,086 | $ 5,757 | 0.83% | $ 2,603,262 | $ 5,450 | 0.84% | $ 2,312,997 | $ 4,180 | 0.72% |
| Non-Interest Bearing Deposits | 923,650 | 911,037 | 830,939 | ||||||
| Other Liabilities | 42,792 | 50,149 | 40,144 | ||||||
| Shareholders' Equity | 500,097 | 485,482 | 447,188 | ||||||
| TOTAL LIABILITIES AND EQUITY | $ 4,255,625 | $ 4,049,930 | $ 3,631,268 | ||||||
| NET INTEREST INCOME | $ 36,491 | $ 37,467 | $ 35,173 | ||||||
| . | |||||||||
| NET INTEREST SPREAD | 3.44% | 3.74% | 4.00% | ||||||
| NET INTEREST MARGIN | 3.69% | 4.00% | 4.22% | ||||||
| * 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, 2015 | December 31, 2014 | March 31, 2014 | |
| Total shareholders' equity | $ 505,579 | $ 489,411 | $ 451,575 |
| Goodwill and other intangible assets, net | (71,385) | (71,628) | (72,480) |
| Tangible common equity | $ 434,194 | $ 417,783 | $ 379,095 |
| Total assets | $ 4,413,278 | $ 4,155,469 | $ 3,634,466 |
| Goodwill and other intangible assets, net | (71,385) | (71,628) | (72,480) |
| Tangible assets | $ 4,341,893 | $ 4,083,841 | $ 3,561,986 |
| Common shares outstanding | 78,329,458 | 78,322,462 | 78,247,026 |
| * Tangible Common Equity, Tangible Assets, and Net Interest Margin and Loan Yields Excluding The Effect of Acquisition Accounting Adjustments are Non-GAAP financial measures. Management believes that presentation of non-GAAP financial information included in this press release are meaningful and useful in understanding the business metrics of the Company's operations. We provide non-GAAP financial information for informational purposes and to enhance an understanding of the Company's GAAP consolidated financial statements. Readers should consider this non-GAAP information in addition to, but not instead or as superior to, the Company's financial statements in accordance with GAAP. Non-GAAP financial information presented by us may be determined or calculated differently by other companies, limiting the usefulness of non-GAAP measures for comparative purposes. | |||