LOS ANGELES, July 20, 2015 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (NASDAQ:WIBC) (the "Company"), the holding company for Wilshire Bank (the "Bank"), today reported net income of $15.6 million, or $0.20 per diluted common share, for the quarter ended June 30, 2015. This compares to net income of $14.7 million, or $0.19 per diluted common share, for the same period of the prior year, and net income of $18.6 million, or $0.24 per diluted common share, for the first quarter of 2015.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "We continued to generate a high level of profitability by focusing on our core competencies, delivering outstanding service to our customers, and maintaining stable credit quality. Our profitability enabled us to increase our quarterly cash dividend paid on July 15, 2015 by 20% to $0.06 per share while still maintaining sufficient capital to support organic and external growth strategies.
"We are making good progress in integrating and ramping-up our expanded residential mortgage lending group, which generated $90 million in loan production during the second quarter. We had a solid quarter of loan production across our other major lending areas and continue to maintain a healthy pipeline of quality lending opportunities," said Mr. Yoo.
Q2 2015 Summary
- Net income totaled $15.6 million, or $0.20 per diluted common share, for the second quarter of 2015
- Total net revenue of $48.8 million for the second quarter of 2015, an increase of 4.0% from the second quarter of 2014
- Return on average assets of 1.39% and return on average equity of 12.12% for the second quarter of 2015
- Net interest margin of 3.59% for the second quarter of 2015, a decrease from 3.69% for the first quarter of 2015
- Loans receivable (net of deferred fees and costs) totaled $3.52 billion at June 30, 2015, an increase of 19% from $2.97 billion at June 30, 2014
- Total deposits were $3.90 billion at June 30, 2015, an increase of 32% from $2.96 billion at June 30, 2014
- Demand deposits totaled $1.03 billion at June 30, 2015, an increase of 8% from $945.0 million at June 30, 2014
- Continued stability in asset quality resulted in no provision for losses on loans and loan commitments for the second quarter of 2015
STATEMENT OF OPERATIONS
Net interest income before provision for losses on loans and loan commitments totaled $37.5 million for the second quarter of 2015, an increase of 3.7% from $36.1 million for the second quarter of 2014, and an increase of 2.7% from $36.5 million for the first quarter of 2015. The increase in net interest income for the second quarter of 2015 compared to the prior quarters is primarily attributable to an increase in average total loans.
Net interest margin was 3.59% for the second quarter of 2015, compared to 3.69% for the first quarter of 2015, and 4.35% for the second quarter of 2014. The decline in net interest margin from the prior quarter was primarily attributable to an increase in average cash and cash equivalents. During the second quarter of 2015, growth in total deposits resulted in an increase in cash held at the Federal Reserve Bank yielding 25 basis points. A portion of the resulting excess liquidity was utilized to purchase investment securities during the second quarter and to payoff overnight FHLB borrowings.
Loan yields were 4.78% for the second quarter of 2015, unchanged from the first quarter of 2015 and down from 5.20% for the second quarter of 2014.
The total cost of deposits was 0.61% for the second quarter of 2015, compared to 0.58% for the first quarter of 2015, and 0.48% for the second quarter of 2014. Compared to the first quarter of 2015, the increase in the cost of deposits for the second quarter of 2015 was primarily due to an increase in rates paid on time deposit accounts.
Non-Interest Income
Total non-interest income was $11.3 million for the second quarter of 2015, compared to $15.3 million for the first quarter of 2015, and $10.7 million for the second quarter of 2014.
The Company recognized $4.2 million in net gain on sales of loans during the second quarter of 2015, compared to $6.8 million for the first quarter of 2015, and $4.7 million for the second quarter of 2014. The decline in net gain on sale of loans for the second quarter of 2015, compared to the previous quarter was due to a decline in gains from the sale of non-performing loans.
Other non-interest income totaled $4.0 million for the second quarter of 2015, compared to $5.4 million for the first quarter of 2015, and $2.9 million for the second quarter of 2014. The decrease from the first to second quarter of 2015 was primarily due to a decline in income from the change in value of servicing assets from $1.6 million for the first quarter of 2015 to $108,000 for the second quarter of 2015.
Non-Interest Expense
Total non-interest expense was $24.7 million for the second quarter of 2015, compared with $22.9 million for the first quarter of 2015, and $24.6 million for the second quarter of 2014. The increase in non-interest expense from the prior quarter was primarily due to an increase in salaries and benefits and other non-interest expenses.
Total salaries and employee benefits expense was $14.2 million for the second quarter of 2015, compared with $12.7 million for the first quarter of 2015, and $12.5 million for the second quarter of 2014. The increase in salaries and employee benefits for the second quarter of 2015 compared to the first quarter of 2015 was largely due to the full quarter impact of the addition of former Bank of Manhattan Mortgage Division employees.
Other non-interest expense for the second quarter of 2015 totaled $6.2 million, compared to $5.8 million for the first quarter of 2015, and $7.1 million for the second quarter of 2014. The increase in other non-interest expense from the first quarter of 2015 was attributable to an increase in other loan expenses and OREO-related expenses.
The Company's operating efficiency ratio was 50.56% for the second quarter of 2015, compared with 44.26% for the first quarter of 2015, and 52.38% for the second quarter of 2014.
BALANCE SHEET
Total loans receivable (net of deferred fees and costs) were $3.52 billion at June 30, 2015, compared to $3.51 billion at March 31, 2015. The increase in loans during the second quarter of 2015 was primarily driven by growth in residential real estate loans.
The following table shows total loans receivable, loans held-for-sale, and total loans by loan type:
| Quarter Ended | |||||
| (Dollars In Thousands) (Unaudited) | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 |
| Construction | $16,050 | $26,117 | $21,248 | $40,062 | $43,292 |
| Real Estate Secured | 2,723,458 | 2,701,800 | 2,655,251 | 2,593,242 | 2,481,801 |
| Commercial & Industrial | 765,655 | 769,438 | 610,762 | 515,831 | 431,758 |
| Consumer | 14,622 | 15,465 | 21,036 | 12,810 | 13,044 |
| Total Loans Receivable * | 3,519,785 | 3,512,820 | 3,308,297 | 3,161,945 | 2,969,895 |
| Loans Held-For-Sale | 25,269 | 10,204 | 11,783 | 16,236 | 6,207 |
| Total Loans * | $3,545,054 | $3,523,024 | $3,320,080 | $3,178,181 | $2,976,102 |
| * Total loans receivable and total loans are net of deferred fees and costs as shown in the consolidated balance sheet presentation | |||||
The following table shows quarterly loan originations:
| Quarter Ended | ||||||||||
| (Dollars In Thousands) (Unaudited) | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | |||||
| Real Estate Secured | $121,066 | 41% | $138,145 | 35% | $184,477 | 56% | $191,272 | 48% | $170,042 | 60% |
| Commercial & Industrial | 46,438 | 16% | 59,837 | 15% | 73,194 | 22% | 89,166 | 22% | 31,058 | 11% |
| Consumer | 124 | 0% | 1,640 | 0% | 3,385 | 1% | 6,560 | 2% | 1,580 | 1% |
| SBA | 25,648 | 9% | 31,718 | 8% | 34,747 | 11% | 41,373 | 10% | 37,004 | 13% |
| Residential Mortgage | 89,652 | 31% | 11,357 | 3% | 8,632 | 4% | 20,791 | 5% | 9,325 | 3% |
| Warehouse Lines of Credit* | 10,000 | 3% | 155,000 | 39% | 23,000 | 6% | 50,000 | 13% | 33,000 | 12% |
| Total Loan Originations | $292,928 | 100% | $397,697 | 100% | $327,435 | 100% | $399,162 | 100% | $282,009 | 100% |
| * Warehouse lines of credit are reported as commercial and industrial loans on the consolidated balance sheet. | ||||||||||
Originations for the second quarter of 2015 totaled $292.9 million, compared to $397.7 million for the first quarter of 2015, and $282.0 million for the second quarter of 2014. The decline in loan origination for the three months ended June 30, 2015, compared to the three months ended March 31, 2015, was due to a decrease in warehouse lending originations offset by an increase in residential mortgage loan originations.
Total SBA loans held-for-sale at the end of the second quarter of 2015 were $5.9 million, compared to $7.7 million at the end of the previous quarter. The decision to retain or sell SBA loans is made on a quarter-to-quarter basis, depending on prevailing pricing in the secondary market and the Company's liquidity needs.
Total deposits were $3.90 billion at June 30, 2015, compared with $3.64 billion at March 31, 2015. The increase in total deposits was attributable to growth in all deposits categories except for savings and interest checking deposits.
CREDIT QUALITY
During the second quarter of 2015, the Company continued to experience general stability in asset quality and a low level of charge-offs. The allowance for loan losses totaled $48.8 million, or 1.38% of gross loans (excluding loans held-for-sale), at June 30, 2015, compared to $48.2 million, or 1.37% of gross loans (excluding loans held-for-sale), at March 31, 2015. The coverage ratio of the allowance for loan losses to non-performing assets was 130.50% at June 30, 2015, compared with 120.63% at March 31, 2015.
Non-Performing Loans
At June 30, 2015, total non-performing loans were $30.9 million, or 0.87% of total gross loans, compared to $32.5 million, or 0.92% of total gross loans, at March 31, 2015.
The following table shows total non-performing loans by loan type:
| NON-PERFORMING LOANS | Quarter Ended | ||||
| (Dollars In Thousands) (Unaudited) | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 |
| (Net of SBA Guaranty Portions) | |||||
| Real Estate Secured | $23,235 | $25,329 | $29,547 | $37,205 | $35,585 |
| Commercial & Industrial | 7,617 | 7,193 | 7,718 | 7,699 | 6,769 |
| Consumer | -- | -- | -- | 1 | 4 |
| Total Non-Performing Loans | $30,852 | $32,522 | $37,265 | $44,905 | $42,358 |
Net Charge-offs/Recoveries
During the second quarter of 2015, the Company had total gross charge-offs of $559,000, and recoveries of $1.2 million, which resulted in total net recoveries of $651,000 compared to net charge-offs of $454,000 for the first quarter of 2015.
Gross charge-offs and recoveries by loan type are reflected in the tables below:
| GROSS LOAN CHARGE-OFFS | Quarter Ended | ||||
| (Dollars In Thousands) (Unaudited) | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 |
| Real Estate Secured | $249 | $325 | $5,461 | $1,161 | $782 |
| Commercial & Industrial | 310 | 999 | 852 | 614 | 1,021 |
| Consumer | -- | -- | -- | -- | -- |
| Total Loan Charge-Offs | $559 | $1,324 | $6,313 | $1,775 | $1,803 |
| LOAN RECOVERIES | Quarter Ended | ||||
| (Dollars In Thousands) (Unaudited) | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 |
| Real Estate Secured | $970 | $193 | $199 | $1,688 | $586 |
| Commercial & Industrial | 240 | 667 | 1,620 | 534 | 408 |
| Consumer | -- | 10 | 2 | -- | 14 |
| Total Loan Recoveries | $1,210 | $870 | $1,821 | $2,222 | $1,008 |
Other measures of credit quality are shown in the following tables:
| DELINQUENT LOANS -- By Days Past Due | Quarter Ended | ||||
| (Dollars In Thousands) (Unaudited) | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 |
| (Net of SBA Guaranty Portions) | |||||
| 30 - 59 Days Past Due | $3,615 | $7,375 | $5,165 | $4,137 | $4,556 |
| 60 - 89 Days Past Due | 7,576 | 421 | 1,820 | 4,002 | 2,992 |
| 90 Days, and still accruing | -- | -- | -- | -- | -- |
| Total Delinquent Loans | $11,191 | $7,796 | $6,985 | $8,139 | $7,548 |
| TROUBLED DEBT RESTRUCTURED LOANS ("TDR") | Quarter Ended | ||||
| (Dollars In Thousands) (Unaudited) | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 |
| (Net of SBA Guaranty Portions) | |||||
| Real Estate Secured | $29,424 | $28,612 | $25,096 | $31,313 | $33,349 |
| Commercial & Industrial | 13,469 | 11,682 | 12,014 | 11,425 | 5,542 |
| Total TDR Loans | $42,893 | $40,294 | $37,110 | $42,738 | $38,891 |
| LOAN CLASSIFICATIONS | Quarter Ended | ||||
| (Dollars In Thousands) (Unaudited) | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 |
| (Net of SBA Guaranty Portions) | |||||
| Special Mention | $86,118 | $81,049 | $76,906 | $62,929 | $88,382 |
| Substandard | 96,666 | 89,402 | 82,305 | 94,854 | 110,462 |
| Doubtful | 5,301 | 9,822 | 11,952 | 15,291 | 18,040 |
| Total Criticized and Classified Loans | $188,085 | $180,273 | $171,163 | $173,074 | $216,884 |
| Total Classified Loans | $101,967 | $99,224 | $94,257 | $110,145 | $128,502 |
CAPITAL RATIOS
As of June 30, 2015, all of the Company's capital ratios remain in excess of "well capitalized" regulatory requirements as shown in the following table:
| Well Capitalized | Total Excess Above Well | ||
| (Dollars In Thousands, Except Per Share Info) | June 30, 2015 | Regulatory Requirements | Capitalized Requirements |
| Tier 1 Leverage Capital Ratio | 11.64% | 5.00% | $291,865 |
| Tier 1 Common Equity Risk-Based Capital Ratio | 11.91% | 6.50% | 200,923 |
| Tier 1 Risk-Based Capital Ratio | 13.78% | 8.00% | 214,652 |
| Total Risk-Based Capital Ratio | 15.03% | 10.00% | 186,850 |
| Tangible Common Equity To Tangible Assets * | 9.83% | N/A | N/A |
| Tangible Common Equity Per Common Share * | $5.66 | N/A | N/A |
| _______________________________ | |||
| * "Tangible Common Equity" and "Tangible Assets" are Non-GAAP measures of financial performance. Please refer to the "Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures" table at the end of this press release for a reconciliation of Tangible Common Equity to Shareholders' Equity and Tangible Assets to Total Assets. | |||
CONFERENCE CALL
Management will host its quarterly conference call on July 21, 2015, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing toll-free 800-798-2864 (domestic) or 617-614-6206 (international) and providing passcode number 49176774.
ABOUT WILSHIRE BANCORP
Headquartered in Los Angeles, Wilshire Bancorp is the parent company of Wilshire Bank, which operates 34 branch offices in California, Texas, Georgia, New Jersey, and New York. Wilshire Bancorp also operates six loan production offices of which four are utilized primarily for the origination of loans under the Small Business Administration lending program located in California, Colorado, Georgia, and Washington, and two that are utilized primarily for the origination of residential mortgage loans located in California. Wilshire Bank is a community bank with a focus on commercial real estate lending and general commercial banking, with its primary market encompassing the multi-ethnic populations of the Los Angeles Metropolitan area. For more information, please go to www.wilshirebank.com.
FORWARD-LOOKING STATEMENTS
Statements concerning future performance, events, or any other guidance on future periods constitute forward-looking statements that are subject to a number of risks and uncertainties that might cause actual results to differ materially from stated expectations. Undue reliance should not be placed on forward-looking statements, as they are subject to risks and uncertainties, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K and our other reports filed with or furnished to the Securities and Exchange Commission. Specific factors that could cause future results to differ materially from historical performance and these forward-looking statements include, but are not limited to: (1) loan production and sales, (2) credit quality, (3) the ability to expand net interest margin, (4) the ability to continue to attract low-cost deposits, (5) success of expansion efforts, (6) competition in the marketplace, (7) political developments, war or other hostilities, (8) changes in the interest rate environment, (9) the ability of our borrowers to repay their loans, (10) the ability to maintain capital requirements and adequate sources of liquidity, (11) effects of or changes in accounting policies, (12) legislative or regulatory changes or actions, (13) the ability to attract and retain key personnel, (14) the ability to receive dividends from our subsidiaries, (15) the ability to secure confidential information through the use of computer systems and telecommunications networks, (16) weakening in the economy, specifically the real estate market, either nationally or in the states in which we do business, (17) the integration of our acquired businesses, and (18) general economic conditions. The information in this press release speaks only as of the date of this release and Wilshire Bancorp specifically disclaims any duty to update the information in this press release, expect as required by applicable law. Additional information on these and other factors that could affect financial results are included in filings by Wilshire Bancorp with the Securities and Exchange Commission.
| CONSOLIDATED BALANCE SHEET | |||||
| (Dollars In Thousands) (Unaudited) | June 30, | March 31, | Three Months | June 30, | Twelve Months |
| 2015 | 2015 | % Change | 2014 | % Change | |
| ASSETS: | |||||
| Cash and due from banks | $475,834 | $353,438 | 35% | $155,799 | 205% |
| Federal funds sold and other cash equivalents | 54 | 164 | -67% | 927 | -94% |
| Total Cash and Cash Equivalents | 475,888 | 353,602 | 35% | 156,726 | 204% |
| Deposits held in other financial institutions | 7,750 | 8,000 | -3% | 20,509 | -62% |
| Investment securities available for sale | 358,331 | 329,343 | 9% | 327,239 | 10% |
| Investment securities held to maturity | 24 | 25 | -4% | 30 | -20% |
| Total Investment Securities | 358,355 | 329,368 | 9% | 327,269 | 9% |
| Total Loans Held-For-Sale | 25,269 | 10,204 | 148% | 6,207 | 307% |
| Real estate construction | 16,050 | 26,117 | -39% | 43,292 | -63% |
| Residential real estate | 192,732 | 171,117 | 13% | 167,055 | 15% |
| Commercial real estate | 2,530,726 | 2,530,683 | 0% | 2,314,746 | 9% |
| Commercial and industrial | 765,655 | 769,438 | 0% | 431,758 | 77% |
| Consumer | 14,622 | 15,465 | -5% | 13,044 | 12% |
| Total loans receivable, net of deferred fees and costs | 3,519,785 | 3,512,820 | 0% | 2,969,895 | 19% |
| Allowance for loan losses | (48,821) | (48,170) | 1% | (52,669) | -7% |
| Loans Receivable, Net of Allowance for Loan Losses | 3,470,964 | 3,464,650 | 0% | 2,917,226 | 19% |
| Accrued interest receivable | 8,635 | 8,581 | 1% | 8,032 | 8% |
| Due from customers on acceptances | 3,940 | 6,472 | -39% | 3,090 | 28% |
| Other real estate owned | 6,559 | 7,411 | -11% | 6,676 | -2% |
| Premises and equipment | 14,366 | 14,058 | 2% | 12,925 | 11% |
| Federal home loan bank (FHLB) stock, at cost | 16,539 | 16,539 | 0% | 16,989 | -3% |
| Cash surrender value of life insurance | 23,610 | 23,470 | 1% | 22,803 | 4% |
| Investment in affordable housing partnerships | 42,193 | 43,134 | -2% | 41,112 | 3% |
| Deferred income taxes | 17,475 | 16,646 | 5% | 32,459 | -46% |
| Servicing assets | 20,123 | 19,813 | 2% | 18,168 | 11% |
| Goodwill | 67,473 | 67,473 | 0% | 67,528 | 0% |
| FDIC indemnification asset | -- | -- | 0% | 267 | -100% |
| Other assets | 31,958 | 23,857 | 34% | 23,275 | 37% |
| TOTAL ASSETS | $4,591,097 | $4,413,278 | 4% | $3,681,261 | 25% |
| LIABILITIES AND SHAREHOLDERS' EQUITY: | |||||
| Non-interest bearing demand deposits | $1,025,133 | $997,803 | 3% | $945,010 | 8% |
| Savings and interest checking | 158,734 | 161,234 | -2% | 160,155 | -1% |
| Money market deposits | 962,855 | 886,092 | 9% | 758,833 | 27% |
| Time deposits in denomination of $100,000 or more | 1,475,340 | 1,322,743 | 12% | 856,681 | 72% |
| Other time deposits | 280,894 | 267,294 | 5% | 235,335 | 19% |
| Total Deposits | 3,902,956 | 3,635,166 | 7% | 2,956,014 | 32% |
| FHLB borrowings | 50,000 | 150,000 | -67% | 150,260 | -67% |
| Acceptance outstanding | 3,940 | 6,472 | -39% | 3,090 | 28% |
| Junior subordinated debentures | 71,895 | 71,837 | 0% | 71,665 | 0% |
| Accrued interest payable | 2,373 | 2,406 | -1% | 2,349 | 1% |
| Other liabilities | 44,350 | 41,818 | 6% | 33,114 | 34% |
| Total Liabilities | 4,075,514 | 3,907,699 | 4% | 3,216,492 | 27% |
| Common stock | 232,893 | 232,207 | 0% | 231,368 | 1% |
| Retained earnings | 278,503 | 267,660 | 4% | 229,556 | 21% |
| Accumulated other comprehensive income | 4,187 | 5,712 | -27% | 3,845 | 9% |
| Total Shareholders' Equity | 515,583 | 505,579 | 2% | 464,769 | 11% |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $4,591,097 | $4,413,278 | 4% | $3,681,261 | 25% |
| CONSOLIDATED STATEMENT OF OPERATIONS | |||||
| (Dollars In Thousands, Except Per Share Data) (Unaudited) | |||||
| Quarter Ended | Three Mths | Quarter Ended | Twelve Mths | ||
| June 30, 2015 | March 31, 2015 | % Change | March 31, 2014 | % Change | |
| INTEREST INCOME | |||||
| Interest and fees on loans | $41,599 | $40,088 | 4% | $37,993 | 9% |
| Interest on investment securities | 1,929 | 1,968 | -2% | 2,023 | -5% |
| Interest on federal funds sold and others | 264 | 192 | 38% | 92 | 187% |
| Total Interest Income | 43,792 | 42,248 | 4% | 40,108 | 9% |
| INTEREST EXPENSE | |||||
| Deposits | 5,661 | 5,097 | 11% | 3,486 | 62% |
| FHLB advances and other borrowings | 658 | 660 | 0% | 493 | 33% |
| Total Interest Expense | 6,319 | 5,757 | 10% | 3,979 | 59% |
| Net interest income before provision for losses on loans and loan commitments | 37,473 | 36,491 | 3% | 36,129 | 4% |
| Provision for losses on loans and loan commitments | -- | -- | 0% | -- | 0% |
| Net interest income after provision for losses on loans and loan commitments | 37,473 | 36,491 | 3% | 36,129 | 4% |
| NONINTEREST INCOME | |||||
| Service charges on deposits | 3,159 | 3,107 | 2% | 3,174 | 0% |
| Gain on sales of loans, net | 4,184 | 6,806 | -39% | 4,687 | -11% |
| Gain on sale/call of investment securities | -- | -- | 0% | -- | 0% |
| Other | 3,971 | 5,354 | -26% | 2,883 | 38% |
| Total Noninterest Income | 11,314 | 15,267 | -26% | 10,744 | 5% |
| NONINTEREST EXPENSES | |||||
| Salaries and employee benefits | 14,164 | 12,665 | 12% | 12,449 | 14% |
| FDIC indemnification impairment | -- | -- | 0% | 597 | -100% |
| Occupancy and equipment | 3,196 | 3,373 | -5% | 3,444 | -7% |
| Data processing | 1,089 | 1,042 | 5% | 795 | 37% |
| Merger related costs | -- | -- | 0% | 213 | -100% |
| Other | 6,218 | 5,829 | 7% | 7,052 | -12% |
| Total Noninterest Expenses | 24,667 | 22,909 | 8% | 24,550 | 0% |
| Income before income taxes | 24,120 | 28,849 | -16% | 22,323 | 8% |
| Income taxes provision | 8,567 | 10,230 | -16% | 7,659 | 12% |
| NET INCOME | $15,553 | $18,619 | -16% | $14,664 | 6% |
| PER COMMON SHARE INFORMATION: | |||||
| Basic income per common share | $0.20 | $0.24 | -17% | $0.19 | 6% |
| Diluted income per common share | $0.20 | $0.24 | -17% | $0.19 | 6% |
| WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | |||||
| Basic | 78,459,708 | 78,326,505 | 78,267,128 | ||
| Diluted | 78,818,847 | 78,655,365 | 78,613,468 | ||
| CONSOLIDATED STATEMENT OF OPERATIONS | |||
| (Dollars In Thousands, Except Per Share Data) (Unaudited) | |||
| Six Months Ended | Twelve Months | ||
| June 30, 2015 | June 30, 2014 | % Change | |
| INTEREST INCOME | |||
| Interest and fees on loans | $81,687 | $75,094 | 9% |
| Interest on investment securities | 3,897 | 4,124 | -6% |
| Interest on federal funds sold and others | 456 | 243 | 88% |
| Total Interest Income | 86,040 | 79,461 | 8% |
| INTEREST EXPENSE | |||
| Deposits | 10,758 | 7,162 | 50% |
| FHLB advances and other borrowings | 1,318 | 997 | 32% |
| Total Interest Expense | 12,076 | 8,159 | 48% |
| Net interest income before provision for losses on loans and loan commitments | 73,964 | 71,302 | 4% |
| Provision for losses on loans and loan commitments | -- | -- | 0% |
| Net interest income after provision for losses on loans and loan commitments | 73,964 | 71,302 | 4% |
| NONINTEREST INCOME | |||
| Service charges on deposits | 6,266 | 6,320 | -1% |
| Gain on sales of loans, net | 10,990 | 9,016 | 22% |
| Gain on sale/call of investment securities | -- | -- | 0% |
| Other | 9,325 | 6,394 | 46% |
| Total Noninterest Income | 26,581 | 21,730 | 22% |
| NONINTEREST EXPENSES | |||
| Salaries and employee benefits | 26,829 | 25,104 | 7% |
| FDIC indemnification impairment | -- | 597 | -100% |
| Occupancy and equipment | 6,569 | 6,753 | -3% |
| Data processing | 2,131 | 1,758 | 21% |
| Merger related costs | -- | 3,577 | -100% |
| Other | 12,047 | 13,018 | -7% |
| Total Noninterest Expenses | 47,576 | 50,807 | -6% |
| Income before income taxes | 52,969 | 42,225 | 25% |
| Income taxes provision | 18,797 | 14,448 | 30% |
| NET INCOME | $34,172 | $27,777 | 23% |
| PER COMMON SHARE INFORMATION: | |||
| Basic income per common share | $0.44 | $0.36 | 23% |
| Diluted income per common share | $0.43 | $0.35 | 23% |
| WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | |||
| Basic | 78,393,475 | 78,191,872 | |
| Diluted | 78,736,870 | 78,554,947 | |
| SUMMARY OF FINANCIAL DATA | ||||||
| (Dollars In Thousands, Except Per Share Data) (Unaudited) | ||||||
| Quarter Ended | ||||||
| AVERAGE BALANCES | June 30, 2015 | March 31, 2015 | June 30, 2014 | |||
| Average Assets | $4,472,065 | $4,255,625 | $3,614,014 | |||
| Average Equity | 513,338 | 500,097 | 459,423 | |||
| Average Net Loans | 3,481,181 | 3,352,433 | 2,923,225 | |||
| Average Deposits | 3,736,003 | 3,490,282 | 2,896,815 | |||
| Average Time Deposits of $100,000 or more | 1,417,860 | 1,297,961 | 865,110 | |||
| Average FHLB & Other Borrowings | 112,088 | 150,655 | 150,280 | |||
| Average Interest Earning Assets | 4,197,297 | 3,976,435 | 3,337,010 | |||
| Six Months Ended | ||||||
| AVERAGE BALANCES | June 30, 2015 | June 30, 2014 | ||||
| Average Assets | $4,364,443 | $3,619,793 | ||||
| Average Equity | 506,754 | 453,495 | ||||
| Average Net Loans | 3,417,163 | 2,901,713 | ||||
| Average Deposits | 3,613,821 | 2,885,642 | ||||
| Average Time Deposits of $100,000 or more | 1,358,242 | 868,318 | ||||
| Average FHLB & Other Borrowings | 131,265 | 171,727 | ||||
| Average Interest Earning Assets | 4,087,478 | 3,341,003 | ||||
| Quarter Ended | ||||||
| PROFITABILITY | June 30, 2015 | March 31, 2015 | June 30, 2014 | |||
| Annualized Return on Average Assets | 1.39% | 1.75% | 1.62% | |||
| Annualized Return on Average Equity | 12.12% | 14.89% | 12.77% | |||
| Efficiency Ratio | 50.56% | 44.26% | 52.38% | |||
| Annualized Operating Expense/Average Assets | 2.21% | 2.15% | 2.72% | |||
| Annualized Net Interest Margin | 3.59% | 3.69% | 4.35% | |||
| Six Months Ended | ||||||
| PROFITABILITY | June 30, 2015 | June 30, 2014 | ||||
| Annualized Return on Average Assets | 1.57% | 1.53% | ||||
| Annualized Return on Average Equity | 13.49% | 12.25% | ||||
| Efficiency Ratio | 47.32% | 54.61% | ||||
| Annualized Operating Expense/Average Assets | 2.18% | 2.81% | ||||
| Annualized Net Interest Margin | 3.64% | 4.29% | ||||
| As Of | ||||||
| Cost of | Cost of | Cost of | ||||
| DEPOSIT COMPOSITION | June 30, 2015 | Funds | March 31, 2015 | Funds | June 30, 2014 | Funds |
| Noninterest Bearing Demand Deposits | 26.3% | 0.00% | 27.4% | 0.00% | 32.0% | 0.00% |
| Savings & Interest Checking | 4.1% | 1.30% | 4.4% | 1.31% | 5.4% | 1.19% |
| Money Market Deposits | 24.7% | 0.66% | 24.4% | 0.67% | 25.7% | 0.66% |
| Time Deposits of $100,000 or More | 37.8% | 0.86% | 36.4% | 0.80% | 29.0% | 0.60% |
| Other Time Deposits | 7.2% | 0.90% | 7.4% | 0.86% | 8.0% | 0.77% |
| Total Deposits | 100.0% | 0.61% | 100.0% | 0.58% | 100.0% | 0.48% |
| As Of | ||||||
| CAPITAL RATIOS | June 30, 2015 | March 31, 2015 | June 30, 2014 | |||
| Tier 1 Leverage Ratio | 11.64% | 11.86% | 12.89% | |||
| Tier 1 Common Equity Risk-Based Capital Ratio | 11.91% | 11.58% | N/A | |||
| Tier 1 Risk-Based Capital Ratio | 13.78% | 13.38% | 15.05% | |||
| Total Risk-Based Capital Ratio | 15.03% | 14.64% | 16.31% | |||
| Total Shareholders' Equity | $515,583 | $505,579 | $464,769 | |||
| Book Value Per Common Share | $6.57 | $6.45 | $5.94 | |||
| Tangible Common Equity Per Common Share * | $5.66 | $5.54 | $5.02 | |||
| Tangible Common Equity to Tangible Assets * | 9.83% | 10.00% | 10.88% | |||
| * Excludes goodwill and other intangible assets | ||||||
| ALLOWANCE FOR LOAN LOSSES | |||||
| (Dollars In Thousands) (Unaudited) | |||||
| Quarter Ended | |||||
| June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | |
| Balance at Beginning of Period | $48,170 | $48,624 | $53,116 | $52,669 | $53,464 |
| Provision for Losses on Loans | -- | -- | -- | -- | -- |
| Recoveries on Loans Previously Charged-off | 1,210 | 870 | 1,821 | 2,222 | 1,008 |
| Gross Loan Charge-offs | (559) | (1,324) | (6,313) | (1,775) | (1,803) |
| Balance at End of Period | $48,821 | $48,170 | $48,624 | $53,116 | $52,669 |
| Net Loan Charge-offs/Average Net Loans | -0.02% | 0.01% | 0.14% | -0.01% | 0.03% |
| Charge-offs/Average Total Loans | 0.02% | 0.04% | 0.20% | 0.06% | 0.06% |
| Allowance for Loan Losses/Gross Loans* | 1.38% | 1.37% | 1.47% | 1.67% | 1.77% |
| Allowance for Loan Losses/Non-accrual Loans | 158.24% | 148.12% | 130.48% | 118.29% | 124.34% |
| Allowance for Loan Losses/Non-performing Loans | 158.24% | 148.12% | 130.48% | 118.29% | 124.34% |
| Allowance for Loan Losses/Non-performing Assets | 130.50% | 120.63% | 107.61% | 103.20% | 107.41% |
| Allowance for Loan Losses/Classified Loans | 47.88% | 48.55% | 51.59% | 48.22% | 34.01% |
| * Excluding held-for-sale loans | |||||
| NON-PERFORMING ASSETS | |||||
| (Dollars In Thousands, Net of SBA Guaranty) | Quarter Ended | ||||
| (Unaudited) | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 |
| Non-accrual Loans | $30,852 | $32,522 | $37,265 | $44,905 | $42,358 |
| Loans 90 days or more past due and still accruing | -- | -- | -- | -- | -- |
| Total Non-performing Loans | 30,852 | 32,522 | 37,265 | 44,905 | 42,358 |
| Total OREO | 6,559 | 7,411 | 7,922 | 6,565 | 6,676 |
| Total Non-performing Assets | $37,411 | $39,933 | $45,187 | $51,470 | $49,034 |
| Total Non-performing Loans/Gross Loans | 0.87% | 0.92% | 1.12% | 1.41% | 1.42% |
| Total Non-performing Assets/Total Assets | 0.81% | 0.90% | 1.09% | 1.31% | 1.33% |
| ALLOWANCE FOR OFF-BALANCE SHEET ITEMS | |||||
| (Dollars In Thousands) (Unaudited) | Quarter Ended | ||||
| June 30, 2015 | March 31, 2015 | June 30, 2014 | |||
| Balance at beginning of period | $1,023 | $1,023 | $1,023 | ||
| Provision for losses on off-balance sheet items | -- | -- | -- | ||
| Balance at end of period | $1,023 | $1,023 | $1,023 | ||
| Six Months Ended | |||||
| June 30, 2015 | June 30, 2014 | ||||
| Balance at beginning of period | $1,023 | $1,023 | |||
| Credit for losses on off-balance sheet items | -- | -- | |||
| Balance at end of period | $1,023 | $1,023 | |||
| WILSHIRE BANCORP, INC. AND SUBSIDIARIES | |||||||||
| AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID | |||||||||
| (Dollars In Thousands) (Unaudited) | |||||||||
| For the Quarter Ended | |||||||||
| June 30, 2015 | March 31, 2015 | June 30, 2014 | |||||||
| Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | |
| INTEREST EARNING ASSETS | Balance | Income/ | Yield/ | Balance | Income/ | Yield/ | Balance | Income/ | Yield/ |
| Expense | Rate | Expense | Rate | Expense | Rate | ||||
| LOANS: | |||||||||
| Real Estate Loans | $2,767,138 | $33,410 | 4.83% | $2,732,436 | $32,565 | 4.77% | $2,497,372 | $31,753 | 5.09% |
| Commercial Loans | 709,662 | 6,947 | 3.92% | 616,848 | 6,282 | 4.07% | 421,163 | 5,120 | 4.86% |
| Consumer Loans | 14,413 | 124 | 3.44% | 13,141 | 116 | 3.53% | 13,426 | 133 | 3.96% |
| Total Gross Loans | 3,491,213 | 40,481 | 4.64% | 3,362,425 | 38,963 | 4.64% | 2,931,961 | 37,006 | 5.05% |
| Deferred Fees and Costs \ Loan Fees | (10,032) | 1,118 | (9,992) | 1,125 | (8,736) | 987 | |||
| Total Loans * | 3,481,181 | 41,599 | 4.78% | 3,352,433 | 40,088 | 4.78% | 2,923,225 | 37,993 | 5.20% |
| INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS: | |||||||||
| Investment Securities** | 339,876 | 1,929 | 2.47% | 359,302 | 1,968 | 2.38% | 338,060 | 2,023 | 2.60% |
| Deposits Held In Other Institutions | 7,986 | 32 | 1.60% | 8,000 | 32 | 1.60% | 20,539 | 70 | 1.36% |
| Federal Funds Sold & Others | 368,254 | 232 | 0.25% | 256,700 | 160 | 0.25% | 55,186 | 22 | 0.16% |
| Total Investment Securities and Other Earning Assets | 716,116 | 2,193 | 1.32% | 624,002 | 2,160 | 1.49% | 413,785 | 2,115 | 2.21% |
| TOTAL INTEREST-EARNING ASSETS | $4,197,297 | $43,792 | 4.19% | $3,976,435 | $42,248 | 4.27% | $3,337,010 | $40,108 | 4.83% |
| Total Non-Interest Earning Assets | 274,768 | 279,190 | 277,004 | ||||||
| TOTAL ASSETS | $4,472,065 | $4,255,625 | $3,614,014 | ||||||
| INTEREST BEARING LIABILITIES | |||||||||
| INTEREST-BEARING DEPOSITS: | |||||||||
| Money Market | $891,494 | $1,464 | 0.66% | $844,576 | $1,406 | 0.67% | $770,512 | $1,276 | 0.66% |
| NOW | 28,704 | 20 | 0.28% | 29,230 | 17 | 0.23% | 34,812 | 16 | 0.18% |
| Savings | 129,805 | 494 | 1.52% | 129,239 | 502 | 1.55% | 120,274 | 445 | 1.48% |
| Time Deposits of $100,000 or More | 1,417,860 | 3,061 | 0.86% | 1,297,961 | 2,603 | 0.80% | 865,110 | 1,296 | 0.60% |
| Other Time Deposits | 276,973 | 622 | 0.90% | 265,626 | 569 | 0.86% | 235,907 | 453 | 0.77% |
| Total Interest Bearing Deposits | 2,744,836 | 5,661 | 0.83% | 2,566,632 | 5,097 | 0.79% | 2,026,615 | 3,486 | 0.69% |
| BORROWINGS: | |||||||||
| FHLB Advances and Other Borrowings | 112,088 | 220 | 0.79% | 150,655 | 232 | 0.62% | 150,280 | 67 | 0.18% |
| Junior Subordinated Debentures | 71,858 | 438 | 2.44% | 71,799 | 428 | 2.38% | 71,631 | 426 | 2.38% |
| Total Borrowings | 183,946 | 658 | 1.43% | 222,454 | 660 | 1.19% | 221,911 | 493 | 0.89% |
| TOTAL INTEREST BEARING LIABILITIES | $2,928,782 | $6,319 | 0.86% | $2,789,086 | $5,757 | 0.83% | $2,248,526 | $3,979 | 0.71% |
| Non-Interest Bearing Deposits | 991,167 | 923,650 | 870,200 | ||||||
| Other Liabilities | 38,778 | 42,792 | 35,865 | ||||||
| Shareholders' Equity | 513,338 | 500,097 | 459,423 | ||||||
| TOTAL LIABILITIES AND EQUITY | $4,472,065 | $4,255,625 | $3,614,014 | ||||||
| NET INTEREST INCOME | $37,473 | $36,491 | $36,129 | ||||||
| . | |||||||||
| NET INTEREST SPREAD | 3.33% | 3.44% | 4.12% | ||||||
| NET INTEREST MARGIN | 3.59% | 3.69% | 4.35% | ||||||
| * Allowance for loan losses excluded from average total loans and earning assets | |||||||||
| ** Tax equivalent ratios for investment securities | |||||||||
| WILSHIRE BANCORP, INC. AND SUBSIDIARIES | ||||||
| AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID | ||||||
| (Dollars In Thousands) (Unaudited) | ||||||
| For the Six Months Ended | ||||||
| June 30, 2015 | June 30, 2014 | |||||
| Average | Interest | Average | Average | Interest | Average | |
| INTEREST EARNING ASSETS | Balance | Income/ | Yield/ | Balance | Income/ | Yield/ |
| Expense | Rate | Expense | Rate | |||
| LOANS: | ||||||
| Real Estate Loans | $2,749,883 | $65,976 | 4.80% | $2,472,184 | $62,762 | 5.08% |
| Commercial Loans | 663,512 | 13,229 | 3.99% | 425,284 | 10,039 | 4.72% |
| Consumer Loans | 13,780 | 239 | 3.47% | 12,567 | 250 | 3.98% |
| Total Gross Loans | 3,427,175 | 79,444 | 4.64% | 2,910,035 | 73,051 | 5.02% |
| Deferred Fees and Costs \ Loan Fees | (10,012) | 2,243 | (8,322) | 2,043 | ||
| Total Loans * | 3,417,163 | 81,687 | 4.78% | 2,901,713 | 75,094 | 5.18% |
| INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS: | ||||||
| Investment Securities** | 349,536 | 3,897 | 2.42% | 343,764 | 4,124 | 2.60% |
| Deposits Held In Other Institutions | 7,993 | 64 | 1.60% | 20,776 | 139 | 1.34% |
| Federal Funds Sold & Others | 312,786 | 392 | 0.25% | 74,750 | 104 | 0.28% |
| Total Investment Securities and Other Earning Assets | 670,315 | 4,353 | 1.40% | 439,290 | 4,367 | 2.15% |
| TOTAL INTEREST-EARNING ASSETS | $4,087,478 | $86,040 | 4.23% | $3,341,003 | $79,461 | 4.78% |
| Total Non-Interest Earning Assets | 276,965 | 278,790 | ||||
| TOTAL ASSETS | $4,364,443 | $3,619,793 | ||||
| INTEREST BEARING LIABILITIES | ||||||
| INTEREST-BEARING DEPOSITS: | ||||||
| Money Market | $868,165 | $2,871 | 0.66% | $778,796 | $2,577 | 0.66% |
| NOW | 28,966 | 37 | 0.26% | 33,454 | 31 | 0.19% |
| Savings | 129,523 | 996 | 1.54% | 117,543 | 921 | 1.57% |
| Time Deposits of $100,000 or More | 1,358,242 | 5,664 | 0.83% | 868,318 | 2,781 | 0.64% |
| Other Time Deposits | 271,331 | 1,190 | 0.88% | 238,445 | 852 | 0.72% |
| Total Interest Bearing Deposits | 2,656,227 | 10,758 | 0.81% | 2,036,556 | 7,162 | 0.70% |
| BORROWINGS: | ||||||
| FHLB Advances and Other Borrowings | 131,265 | 452 | 0.69% | 171,727 | 141 | 0.16% |
| Junior Subordinated Debentures | 71,828 | 866 | 2.41% | 71,602 | 856 | 2.39% |
| Total Borrowings | 203,093 | 1,318 | 1.30% | 243,329 | 997 | 0.82% |
| TOTAL INTEREST BEARING LIABILITIES | $2,859,320 | $12,076 | 0.85% | $2,279,885 | $8,159 | 0.72% |
| Non-Interest Bearing Deposits | 957,594 | 849,086 | ||||
| Other Liabilities | 40,775 | 37,327 | ||||
| Shareholders' Equity | 506,754 | 453,495 | ||||
| TOTAL LIABILITIES AND EQUITY | $4,364,443 | $3,619,793 | ||||
| NET INTEREST INCOME | $73,964 | $71,302 | ||||
| NET INTEREST SPREAD | 3.38% | 4.06% | ||||
| NET INTEREST MARGIN | 3.64% | 4.29% | ||||
| * Allowance for loan losses excluded from average total loans and earning assets | ||||||
| ** Tax equivalent ratios for investment securities | ||||||
| RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES: | |||
| TANGIBLE COMMON EQUITY AND TANGIBLE ASSETS * | |||
| (Dollars In Thousands, Except Share Data) (Unaudited) | |||
| Quarter Ended | |||
| June 30, 2015 | March 31, 2015 | June 30, 2014 | |
| Total shareholders' equity | $515,583 | $505,579 | $464,769 |
| Goodwill and other intangible assets, net | (71,141) | (71,385) | (72,206) |
| Tangible common equity | $444,442 | $434,194 | $392,563 |
| Total assets | $4,591,097 | $4,413,278 | $3,681,261 |
| Goodwill and other intangible assets, net | (71,141) | (71,385) | (72,206) |
| Tangible assets | $4,519,956 | $4,341,893 | $3,609,055 |
| Common shares outstanding | 78,495,182 | 78,329,458 | 78,276,758 |
| * Tangible Common Equity, Tangible Assets, and Net Interest Margin and Loan Yields Excluding The Effect of Acquisition Accounting Adjustments are Non-GAAP financial measures. Management believes that presentation of non-GAAP financial information included in this press release are meaningful and useful in understanding the business metrics of the Company's operations. We provide non-GAAP financial information for informational purposes and to enhance an understanding of the Company's GAAP consolidated financial statements. Readers should consider this non-GAAP information in addition to, but not instead or as superior to, the Company's financial statements in accordance with GAAP. Non-GAAP financial information presented by us may be determined or calculated differently by other companies, limiting the usefulness of non-GAAP measures for comparative purposes | |||