Exhibit 99.1
WILSHIRE BANCORP, INC. CONTACT: Joanne Kim, President & CEO, (213) 639-1843 Alex Ko, EVP & CFO, (213) 427-6560 www.wilshirebank.com | | 
| | NEWS RELEASE |
Wilshire Bancorp Reports Financial Results for Second Quarter 2010
LOS ANGELES, July 27, 2010 - Wilshire Bancorp, Inc. (NASDAQ: WIBC), the holding company for Wilshire State Bank, today reported a net loss of $4.6 million, or ($0.15) per basic and diluted common share, for the quarter ended June 30, 2010. This compares to net income of $12.8 million, or $0.44 per basic and diluted common share, for the same period of the prior year. Net loss for the second quarter of 2010 was partly attributable to provisions for losses on loans of $32.2 million. Of this amount, $13.4 million resulted from the sale of approximately $48.0 million in non-performing and delinquent loans.
“Our second quarter results reflect the increasing impact of the weak economy on our commercial real estate portfolio and our aggressive actions to reduce our problem assets,” said Ms. Joanne Kim, President and CEO of Wilshire Bancorp. “We were able to dispose of a large number of problem loans with only a small impact to our capital ratios. We will continue our proactive approach to managing credit quality including additional sales of non-performing and delinquent loans if problem assets remain elevated in the near future.”
“The core earnings power of the Company continues to be strengthened as evidenced by the Company’s increased net interest income before provision for loan losses. Our net interest income before provision in the second quarter of 2010 increased 39% over the same period of the prior year. The large increase was a result of strong interest income growth coupled with declining interest expense. We expect these positive operating trends to continue in the second half of the year, which will help us accelerate our return to profitability as we better absorb our credit costs going forward,” said Ms. Kim.
SECOND QUARTER 2010 SUMMARY:
· Increase in net interest income — Net interest income increased 39% year-over-year.
· Expanding net interest margin — Net interest margin increased six basis points from the prior quarter, and by 38 basis points from the prior year.
· Decline in non-accrual loans — Non-accrual loans declined to $83.1 million, or 3.41% of gross loans, for quarter ended June 30, 2010, from $105.0 million, or 4.34% of gross loans, on March 31, 2010.
· Increase in allowance for loan losses — The allowance for loan losses as a percentage of gross loans was strengthened to 3.72% on June 30, 2010, from 3.29% on March 31, 2010 and our allowance as a percentage of gross legacy Wilshire loans (all loans excluding those acquired in the Mirae Bank acquisition) increased to 4.11% from 3.66% in the same period.
· Strong capital position — Total risk-based capital ratio remained strong at 15.17% as of June 30, 2010. Tangible common equity per common share was $6.74 on June 30, 2010.
CREDIT QUALITY
During the second quarter of 2010, the Company sold 18 non-performing and delinquent loans with a carrying balance of approximately $48.0 million at an approximate 15.7% average weighted discount to their carrying values. These loans consisted of $42.9 million in commercial real estate loans and $5.1 million in commercial loans. Of the commercial real estate loans sold, loans secured by multifamily residential properties accounted for $16.7 million or 34.8%, of total non-performing and delinquent loans sold, loans secured by carwash and gas stations totaled $10.0 million or 20.9%, and loans secured by hotels totaled $6.7 million or 13.9%. Non-performing loans totaled $29.3 million or 61.2% of the total sold, and two loans totaling $18.6 million or 38.8% were delinquent loans past due 61 and 54 days, respectively, on June 30, 2010. Legacy Wilshire loans accounted for the bulk of the loans at $43.6 million or 90.9% of loans sold.
For the second quarter of 2010, the Company recorded a provision for losses on loans and loan commitments of $32.2 million in the second quarter of 2010 compared to $17.0 million in the first quarter of 2010. Approximately $13.4 million of the second quarter provision for loan losses was attributable to the sale of loans discussed above. $7.3 million of the $13.4 million in provision for loan losses resulted from charge-offs from the loan sale transactions, and the remaining $6.1 million was recorded as general valuation allowance to reflect the overall inherent credit risk in the remaining loan portfolio after the sale.
The allowance for loan losses increased to $91.4 million, or 3.72% of total loans, on June 30, 2010, from $79.6 million, or 3.29% of total loans, on March 31, 2010. Allowance for loan losses as a percentage of legacy Wilshire loans increased 45 basis points from 3.66% to 4.11% for the same period. The coverage ratio of allowance for loan losses to non-performing assets also increased from 72.42% to 101.02% from March 31, 2009 to June 30, 2010.
Non-accrual Loans
At June 30, 2010, total non-accrual loans totaled $83.1 million, or 3.41% of gross loans, compared to $105.0 million, or 4.34% of gross loans, on March 31, 2010. The decrease is primarily attributable to the sales of non-performing loans described above in addition to a decrease in the inflow of new non-accrual loans. New inflows into non-accrual loans in the second quarter of 2010 totaled $10.7 million, $3.5 million of which were “covered loans” that were added through the acquisition of Mirae Bank. Compared to the first quarter of 2010, total inflows to non-accrual status decreased by $34.9 million or 77% from $45.6 million. Loans that migrated from delinquencies to non-accrual status decreased from $36.6 million during the first quarter of 2010 to $7.9 million during the second quarter of 2010, and TDR loans that migrated to non-accrual status decreased from $8.0 million to $1.1 million for the same periods. Outflow from non-accrual status, which consists of note sales, upgraded loans, OREO (other real estate owned), charge-offs, paid-off loans, and payments received, increased from $10.0 million in the first quarter of 2010 to $32.6 million for the second quarter.
As previously disclosed, upon acquiring certain assets and liabilities of the former Mirae Bank, the Company entered into a loss sharing agreement with the FDIC whereby the FDIC has agreed to share in losses on assets covered under the agreement. The assets covered by the loss sharing agreement include loans and foreclosed loan collateral existing on June 26, 2009 and acquired from Mirae Bank. As a result, loans acquired through the acquisition of Mirae Bank are identified as “covered” loans, and those that were originated at Wilshire are “non-covered” loans or “legacy Wilshire” loans. The following is a table showing “covered” and “non-covered” non-accrual loans by loan type:
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| | Quarter Ended | |
(Net of SBA Guarantee Portions) | | June 30, 2010 | | March 31 ,2010 | | June 30, 2009 | |
(dollars in thousands) | | COVERED | | NON-COVERED | | TOTAL | | COVERED | | NON-COVERED | | TOTAL | | TOTAL | |
| | | | | | | | | | | | | | | |
Construction | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
Real Estate Secured | | 17,232 | | 61,200 | | 78,432 | | 19,696 | | 75,470 | | 95,166 | | 43,547 | |
Commercial & Industrial | | 1,599 | | 3,051 | | 4,650 | | 2,213 | | 7,603 | | 9,816 | | 5,685 | |
Consumer | | — | | 34 | | 34 | | — | | 42 | | 42 | | 90 | |
TOTAL NON-ACCRUALS | | $ | 18,831 | | $ | 64,285 | | $ | 83,116 | | $ | 21,909 | | $ | 83,115 | | $ | 105,024 | | $ | 49,322 | |
Loan Delinquencies
At June 30, 2010, total loan delinquencies increased to $37.0 million from $30.5 million on March 31, 2010. However, as a percentage of gross loans, delinquencies still remained fairly low at 1.50% on June 30, 2010, compared to 1.26% on March 31, 2010. 60-89 day delinquencies increased the most from $9.9 million on March 31, 2010 to $15.8 million on June 30, 2010. Delinquencies by days past due and loan type are reflected in the tables below:
| | Quarter Ended | |
By Days Past Due | | June 30, 2010 | | March 31, 2010 | | June 30, 2009 | |
(dollars in thousands) | | COVERED | | NON-COVERED | | TOTAL | | COVERED | | NON-COVERED | | TOTAL | | TOTAL | |
| | | | | | | | | | | | | | | |
30 - 59 Days Past Due | | $ | 4,108 | | $ | 17,146 | | $ | 21,254 | | $ | 3,318 | | $ | 17,266 | | $ | 20,584 | | $ | 35,359 | |
60 - 89 Days Past Due | | 910 | | 14,844 | | 15,754 | | 4,640 | | 5,290 | | 9,930 | | 37,001 | |
90 Days, and still accruing | | — | | 1 | | 1 | | — | | — | | — | | 128 | |
TOTAL DELINQUENCIES | | $ | 5,018 | | $ | 31,991 | | $ | 37,009 | | $ | 7,958 | | $ | 22,556 | | $ | 30,514 | | $ | 72,488 | |
| | Quarter Ended | |
By Loan Category | | June 30, 2010 | | March 31, 2010 | | June 30, 2009 | |
(dollars in thousands) | | COVERED | | NON-COVERED | | TOTAL | | COVERED | | NON-COVERED | | TOTAL | | TOTAL | |
| | | | | | | | | | | | | | | |
Construction | | $ | — | | $ | 2,654 | | $ | 2,654 | | $ | — | | $ | 1,163 | | $ | 1,163 | | $ | 494 | |
Real Estate Secured | | 3,449 | | 25,015 | | 28,464 | | 7,283 | | 18,943 | | 26,226 | | 60,251 | |
Commercial & Industrial | | 1,569 | | 4,241 | | 5,810 | | 675 | | 2,328 | | 3,003 | | 11,535 | |
Consumer | | — | | 81 | | 81 | | — | | 122 | | 122 | | 208 | |
TOTAL DELINQUENCIES | | $ | 5,018 | | $ | 31,991 | | $ | 37,009 | | $ | 7,958 | | $ | 22,556 | | $ | 30,514 | | $ | 72,488 | |
Loan Charge-offs
Net loan charge-offs for the second quarter of 2010 were $17.2 million, compared to $5.8 million in the first quarter of 2010. The increase in charge-offs was based upon updated appraisal values for commercial real estate loans, charge-off from loan sales, and write-downs from anticipated loan sale transactions. Approximately $7.3 million of the charge-offs in the second quarter of 2010 related to the sale of non-performing and delinquent loan sales discussed above.
| | Quarter Ended | |
| | June 30, 2010 | | March 31, 2010 | | June 30, 2009 | |
(dollars in thousands) | | COVERED | | NON-COVERED | | TOTAL | | COVERED | | NON-COVERED | | TOTAL | | TOTAL | |
| | | | | | | | | | | | | | | |
Construction | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
Real Estate Secured | | 596 | | 12,268 | | 12,864 | | 13 | | 4,359 | | 4,372 | | 176 | |
Commercial & Industrial | | 373 | | 3,841 | | 4,214 | | 50 | | 1,290 | | 1,340 | | 6,940 | |
Consumer | | — | | 80 | | 80 | | — | | 115 | | 115 | | 356 | |
TOTAL CHARGE-OFFS | | $ | 969 | | $ | 16,189 | | $ | 17,158 | | $ | 63 | | $ | 5,764 | | $ | 5,827 | | $ | 7,472 | |
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COMMERCIAL REAL ESTATE PORTFOLIO
CRE Loan Composition
Total CRE loans on June 30, 2010 were $1.90 billion, a slight increase from $1.89 billion on March 31, 2010, and an increase of 8% from $1.76 billion on June 30, 2009. The breakdown of the CRE by property type is provided below:
(dollars in thousands) | | June 30, 2010 | | % | | March 31, 2010 | | % | | 3 Mths
Change | | June 30, 2009 | | % | | 12 Mths
Change | |
Multi-Family | | $ | 95,640 | | 5 | % | $ | 103,382 | | 5 | % | -7 | % | $ | 120,000 | | 7 | % | -20 | % |
Office / Mixed Use | | 310,916 | | 16 | % | 280,322 | | 15 | % | 11 | % | 229,266 | | 13 | % | 36 | % |
Retail | | 725,147 | | 38 | % | 726,096 | | 38 | % | 0 | % | 703,129 | | 40 | % | 3 | % |
Industrial / Warehouse | | 325,024 | | 17 | % | 325,874 | | 17 | % | 0 | % | 277,044 | | 16 | % | 17 | % |
Hotel / Motel | | 307,532 | | 16 | % | 310,181 | | 16 | % | -1 | % | 311,341 | | 18 | % | -1 | % |
Other | | 140,694 | | 7 | % | 144,314 | | 8 | % | -3 | % | 121,689 | | 7 | % | 16 | % |
Total CRE Loans | | $ | 1,904,953 | | 100 | % | $ | 1,890,169 | | 100 | % | 1 | % | $ | 1,762,469 | | 100 | % | 8 | % |
The CRE loan maturity distributions are listed below:
(dollars in thousands) | | 2010 | | 2011 | | 2012 | | 2013 | | 2014 | | 2015 & after | | TOTAL | |
Multifamily | | $ | 14,135 | | $ | 5,366 | | $ | 32,698 | | $ | 18,843 | | $ | 11,972 | | $ | 12,626 | | $ | 95,640 | |
Office / Mixed Use | | 33,278 | | 17,962 | | 63,880 | | 42,668 | | 60,044 | | 93,084 | | 310,916 | |
Retail | | 39,220 | | 84,790 | | 110,391 | | 140,066 | | 137,137 | | 213,543 | | 725,147 | |
Industrial / Warehouse | | 31,822 | | 27,852 | | 53,470 | | 44,489 | | 74,347 | | 93,044 | | 325,024 | |
Hotel / Motel | | 3,205 | | 75,723 | | 52,759 | | 45,578 | | 24,030 | | 106,237 | | 307,532 | |
Other | | 23,021 | | 18,086 | | 21,657 | | 17,140 | | 19,514 | | 41,276 | | 140,694 | |
Total CRE Loans | | $ | 144,681 | | $ | 229,779 | | $ | 334,855 | | $ | 308,784 | | $ | 327,044 | | $ | 559,810 | | $ | 1,904,953 | |
% of CRE | | 8 | % | 12 | % | 18 | % | 16 | % | 17 | % | 29 | % | 100 | % |
The Company believes that overall refinance risk is limited based upon relatively low loan-to-value ratios and the fact that 88% of the CRE loan portfolio has maturities in 2011 or later.
BALANCE SHEET
Total assets were $3.43 billion on June 30, 2010, down slightly from $3.46 billion on March 31, 2010.
Total loans were $2.46 billion on June 30, 2010, compared to $2.42 billion on March 31, 2010. Total new loan origination was $186.1 million in the second quarter of 2010, compared to $87.3 million in the first quarter of 2010. All categories of loans with the exception of commercial and industrial loans increased in the second quarter of 2010.
Loan Categories
| | Quarter Ended | |
| | June 30, 2010 | | March 31, 2010 | |
(dollars in thousands) | | COVERED | | NON-COVERED | | TOTAL | | COVERED | | NON-COVERED | | TOTAL | |
| | | | | | | | | | | | | |
Construction | | $ | — | | $ | 59,376 | | $ | 59,376 | | $ | — | | $ | 47,564 | | $ | 47,564 | |
Real Estate Secured | | 179,124 | | 1,830,387 | | 2,009,511 | | 188,353 | | 1,795,142 | | 1,983,495 | |
Commercial & Industrial | | 56,357 | | 316,370 | | 372,727 | | 61,527 | | 313,872 | | 375,399 | |
Consumer | | 150 | | 18,265 | | 18,415 | | 191 | | 16,113 | | 16,304 | |
TOTAL GROSS LOANS | | $ | 235,631 | | $ | 2,224,398 | | $ | 2,460,029 | | $ | 250,071 | | $ | 2,172,691 | | $ | 2,422,762 | |
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Total deposits were $2.90 billion on June 30, 2010, down slightly from $2.93 billion on March 31, 2010. As part of its strategy to reduce deposit costs, the Company discontinued its money market product promotion. This resulted in a shift of deposits out of money market accounts and into time deposits during the second quarter of 2010. Non-interest bearing demand deposits increased by $13.8 million or 3.3% to $427.8 million from the first quarter of 2010. Although core deposits decreased by 1.4% from March 31, 2010 to June 30, 2010, compared to June 30, 2009, core deposit experienced strong growth at 63.4% or $833.4 million.
During the second quarter of 2010, the Company sold $274 million in total investments for a realized gain totaling $3.7 million. The sale of investments during the second quarter was a result of management’s plan to shorten the duration of the investment portfolio as interest rates are expected to increase in the future. The sale of investments resulted in an increase in cash and cash equivalents from $245.0 million on March 31, 2010 to $358.7 million on June 30, 2010. Overnight and term fed funds sold, a component of cash and cash equivalents, increased to $224.0 million on June 30, 2010 from $30.0 million on March 31, 2010. The cash and cash equivalent balance will be reduced as the Company continues to reinvest the proceeds from the sale of securities in the second quarter of 2010.
Strong Capital Ratios
Capital ratios remained strong in the second quarter of 2010 and were well in excess of “well capitalized” regulatory requirements. Based on capital levels as of June 30, 2010, the Company had excess capital to absorb future credit costs, as shown in the table below:
(Dollars In thousands
except per share info) | | June 30, 2010 | | Well Capitalized
Regulatory
Requirements | | Total Excess
Above Well
Capitalized
Requirements | |
| | | | | | | |
Tier 1 Leverage Capital Ratio | | 9.51 | % | 5.00 | % | $ | 155,857 | |
Tier 1 Risk-Based Capital Ratio | | 13.72 | % | 6.00 | % | 184,920 | |
Total Risk-Based Capital Ratio | | 15.17 | % | 10.00 | % | 123,818 | |
Tangible Common Equity To Tangible Assets | | 5.80 | % | N/A | | N/A | |
Tangible Common Equity Per Common Share | | $ | 6.74 | | N/A | | N/A | |
| | | | | | | | | |
STATEMENT OF OPERATIONS
Net interest Income and Margin
Net interest income was $29.2 million in the second quarter of 2010, compared to $21.0 million in the same period of the prior year and $28.6 million in the previous quarter. The increase is primarily attributable to a higher level of earning assets resulting from our acquisition of the assets of Mirae Bank as well as strong organic growth.
Net interest margin was 3.71% in the second quarter of 2010, compared to 3.65% in the first quarter of 2010 and 3.33% in the second quarter of 2009. The sequential quarter increase in net interest margin is primarily attributable to a lower cost of deposits and a decrease in non-accrual loan interest income reversals. The Company’s total cost of deposits declined to 1.43% in the second quarter of 2010 from 1.55% in the first quarter of 2010.
The weighted average loan yield increased by 11 basis points to 6.09% in the second quarter of 2010 from 5.98% in the first quarter of 2010. The increase in the weighted average loan yield is primarily attributable to a decrease in non-accrual loan interest income reversals. Total yield on investment securities and other earning assets decreased 51 basis points to 2.62% in the second quarter of 2010 from 3.13% in the first quarter of 2010.
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The decrease in total yield on investment securities and other earning assets is primarily attributable to an increase in Fed Funds Sold as the Company waits for more attractive reinvestment opportunities in the securities market before reinvesting the proceeds from the sale of the securities in the second quarter of 2010.
Non-Interest Income
Non-interest income was $9.9 million in the second quarter of 2010, compared with $28.6 million in the same period of the prior year. Non-interest income in the second quarter of 2009 was positively impacted by a $21.7 million bargain purchase gain related to the acquisition of Mirae Bank. For the quarter ending June 30, 2010, gain on sale of loans increased to $1.4 million and gain on sale of securities increased to $3.7 million from the quarter ending June 30, 2009. Other non-interest income decreased 18% from $1.9 million to $1.6 million for the same period.
On a quarter to quarter comparison, non-interest income increased 27% to $9.9 million on June 30, 2010. The increase is primarily due to gain on sale of loans, which increased from $36,000 on March 31, 2010 to $1.4 million on June 30, 2010. The increase is due to the adoption of a new accounting standard that resulted in a timing difference in which gain on sales of SBA loans are recognized not at the time of the sale, but upon expiration of recourse provisions of the sale transactions. Therefore, portions of the gain on sale of SBA loans in the first quarter of 2010 were recognized in the second quarter 2010. During the second quarter of 2010, the Company originated $32.6 million in SBA loans and sold approximately $25.2 million. Gain on sale of securities also increased $1.2 million to $3.7 million from the first to second quarter of 2010.
Non-Interest Expense
Total non-interest expense was $16.1 million in the second quarter of 2010, an increase of 15% from $14.1 million in the same period of the prior year. The increase is primarily due to growth in personnel and occupancy expenses related to an increase in professional fees which includes legal fees, accounting, and outside consulting fees. Compared to the previous quarter, non-interest expense increased 10% from $14.7 million on March 31, 2010 to $16.1 million on June 30, 2010. The quarterly increase in other non-interest expense was primarily due to increases in professional fees and expense related to other real estate owned (OREO). Together these expenses increased by $714,000 during the second quarter of 2010.
The Company’s efficiency ratio in the second quarter of 2010 was 41.24%, compared to 40.42% in the first quarter of 2010 and 28.40% in the second quarter of 2009. The efficiency ratio in the second quarter of 2009 was positively impacted by the bargain purchase gain resulting from our acquisition of Mirae Bank that substantially increased revenue in the quarter.
Tax Provision
The quarter to date tax benefit for June 30, 2010 was $5.6 million compared to a tax provision of $1.3 million on March 31, 2010, and a quarterly tax provision of $9.6 million on June 30, 2009. The effective tax rate for the second quarter of 2010 was based upon the actual year-to-date income earned, and not based on the previously utilized estimated annualized income. This resulted in an increased recognition of tax benefits which increased our overall effective tax rate for the second quarter of 2010.
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CONFERENCE CALL
Management will host its quarterly conference call on July 27, 2010, at 11:00 a.m. PDT (2:00 p.m. EDT). Investment professionals are invited to participate in the call by dialing 866-783-2138 (domestic number) or 857-350-1597 (international number) and entering passcode 82435882.
COMPANY INFORMATION
Headquartered in Los Angeles, Wilshire State Bank operates 24 branch offices in California, Texas, New Jersey and New York, and six loan production offices in Dallas, Houston, Atlanta, Denver, Annandale, Virginia, and Fort Lee, New Jersey, and is an SBA preferred lender nationwide. Wilshire State Bank is a community bank with a focus on commercial real estate lending and general commercial banking, with its primary market encompassing the multi-ethnic populations of the Los Angeles Metropolitan area. Wilshire Bancorp’s strategic goals include increasing shareholder and franchise value by continuing to grow its multi-ethnic banking business and expanding its geographic reach to other similar markets with strong levels of small business activity.
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. Specific factors include, but are not limited to, loan production and sales, credit quality, the ability to expand net interest margin, the ability to continue to attract low-cost deposits, success of expansion efforts, competition in the marketplace and general economic conditions. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes included in Wilshire Bancorp’s most recent reports on Form 10-K and Form 10-Q, as filed with the Securities and Exchange Commission, as they may be amended from time to time. Results of operations for the most recent quarter are not necessarily indicative of operating results for any future periods. Any projections in this release are based on limited information currently available to management and are subject to change. Since management will only provide guidance at certain points during the year, Wilshire Bancorp will not necessarily update the information. Such information speaks only as of the date of this release. Additional information on these and other factors that could affect financial results are included in filings by Wilshire Bancorp with the Securities and Exchange Commission.
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CONSOLIDATED BALANCE SHEET
(dollars in thousands) (unaudited)
| | June 30, | | March 31, | | Three Month | | June 30, | | One Year | |
| | 2010 | | 2010 | | Change | | 2009 | | Change | |
| | | | | | | | | | | |
ASSETS: | | | | | | | | | | | |
Cash and Due from Banks | | $ | 134,707 | | $ | 214,970 | | -37 | % | $ | 75,844 | | 78 | % |
Federal Funds Sold and Other Cash Equivalents | | 224,005 | | 30,018 | | 646 | % | 145,077 | | 54 | % |
Total Cash and Cash Equivalents | | 358,712 | | 244,988 | | 46 | % | 220,921 | | 62 | % |
| | | | | | | | | | | |
Investment Securities Available For Sale | | 506,381 | | 687,716 | | -26 | % | 427,714 | | 18 | % |
Investment Securities Held To Maturity | | 96 | | 105 | | -9 | % | 124 | | -23 | % |
Total Investment Securities | | 506,477 | | 687,821 | | -26 | % | 427,838 | | 18 | % |
Loans | | | | | | | | | | | |
Real Estate Construction | | 58,680 | | 47,564 | | 23 | % | 40,517 | | | |
Residential Real Estate | | 109,709 | | 94,584 | | 16 | % | 79,295 | | 45 | % |
Commercial Real Estate | | 1,896,329 | | 1,885,276 | | 1 | % | 1,814,470 | | 38 | % |
Commercial and Industrial | | 371,903 | | 374,096 | | -1 | % | 446,936 | | 5 | % |
Consumer | | 18,401 | | 16,304 | | 13 | % | 18,489 | | -17 | % |
Total Loans | | 2,455,022 | | 2,417,824 | | 2 | % | 2,399,707 | | 0 | % |
Allowance For Loan Losses | | (91,419 | ) | (79,576 | ) | 0 | % | (38,758 | ) | 2 | % |
Loans, Net of Allowance for Loan Losses | | 2,363,603 | | 2,338,248 | | 1 | % | 2,360,949 | | 0 | % |
| | | | | | | | | | | |
Accrued Interest Receivable | | 13,427 | | 15,214 | | -12 | % | 12,639 | | 6 | % |
Due from Customers on Acceptances | | 611 | | 1,006 | | -39 | % | 251 | | 143 | % |
Other Real Estate Owned | | 6,540 | | 4,860 | | 35 | % | 5,956 | | 10 | % |
Premises and Equipment | | 13,741 | | 13,602 | | 1 | % | 12,360 | | 11 | % |
Federal Home Loan Bank (FHLB) Stock, at Cost | | 20,075 | | 21,040 | | -5 | % | 21,040 | | -5 | % |
Cash Surrender Value of Life Insurance | | 18,354 | | 18,197 | | 1 | % | 17,715 | | 4 | % |
Investment in affordable housing partnerships | | 29,665 | | 25,127 | | 18 | % | 12,228 | | 143 | % |
Deferred Income Taxes | | 28,199 | | 20,198 | | 40 | % | 14,148 | | 99 | % |
Servicing Assets | | 6,655 | | 6,715 | | -1 | % | 6,677 | | 0 | % |
Goodwill | | 6,675 | | 6,675 | | 0 | % | 6,675 | | 0 | % |
FDIC Indemnification | | 28,538 | | 33,329 | | -14 | % | 40,235 | | -29 | % |
Other Assets | | 35,822 | | 22,292 | | 61 | % | 14,479 | | 147 | % |
TOTAL ASSETS | | $ | 3,437,094 | | $ | 3,459,312 | | -1 | % | $ | 3,174,111 | | 8 | % |
| | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY: | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | |
Non-interest Bearing Demand Deposits | | $ | 427,793 | | $ | 414,023 | | 3 | % | $ | 367,243 | | 16 | % |
Savings and Interest Checking | | 100,210 | | 97,170 | | 3 | % | 81,126 | | 24 | % |
Money Market Deposits | | 908,112 | | 979,454 | | -7 | % | 593,610 | | 53 | % |
Time Deposits in denomination of $100,000 or more | | 752,656 | | 746,866 | | 1 | % | 1,136,438 | | -34 | % |
Other Time Deposits | | 712,698 | | 687,532 | | 4 | % | 273,186 | | 161 | % |
Total Deposits | | 2,901,469 | | 2,925,045 | | -1 | % | 2,451,603 | | 18 | % |
| | | | | | | | | | | |
FHLB borrowings and Federal Funds Purchased | | 145,306 | | 142,487 | | 2 | % | 331,000 | | -56 | % |
Acceptance Outstanding | | 611 | | 1,006 | | -39 | % | 251 | | 143 | % |
Junior Subordinated Debentures | | 87,321 | | 87,321 | | 0 | % | 87,321 | | 0 | % |
Accrued Interest Payable | | 5,461 | | 5,954 | | -8 | % | 11,099 | | -51 | % |
Other Liabilities | | 29,491 | | 26,804 | | 10 | % | 23,679 | | 25 | % |
Total Liabilities | | 3,169,659 | | 3,188,592 | | -1 | % | 2,904,953 | | 9 | % |
| | | | | | | | | | | |
STOCKHOLDERS’ EQUITY: | | | | | | | | | | | |
Preferred Stock | | 60,186 | | 60,058 | | 0 | % | 59,683 | | 1 | % |
Common Stock | | 55,370 | | 55,118 | | 0 | % | 54,420 | | 2 | % |
Retained Earnings | | 147,325 | | 151,895 | | -3 | % | 152,386 | | -3 | % |
Accumulated Other Comprehensive Income | | 4,554 | | 3,624 | | 26 | % | 2,669 | | 71 | % |
Total Stockholders’ Equity | | 267,435 | | 270,695 | | -1 | % | 269,158 | | -1 | % |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 3,437,094 | | $ | 3,459,312 | | -1 | % | $ | 3,174,111 | | 8 | % |
(continued)
8
CONSOLIDATED STATEMENT OF OPERATIONS
(dollars in thousands, except per share data) (unaudited)
| | Quarter Ended | | Three Month | | Quarter Ended | | One Year | |
| | June 30, 2010 | | March 31, 2010 | | % Change | | June 30, 2009 | | % Change | |
| | | | | | | | | | | |
INTEREST INCOME | | | | | | | | | | | |
Interest and Fees on Loans | | $ | 36,079 | | $ | 35,304 | | 2 | % | $ | 31,234 | | 16 | % |
Interest on Investment Securities | | 4,756 | | 5,615 | | 15 | % | 3,194 | | 49 | % |
Interest on Federal Funds Sold | | 294 | | 382 | | -23 | % | 777 | | -62 | % |
Total Interest Income | | 41,129 | | 41,301 | | 0 | % | 35,205 | | 17 | % |
| | | | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | | |
Deposits | | 10,476 | | 11,174 | | -6 | % | 11,776 | | -11 | % |
FHLB Advances and Other Borrowings | | 1,414 | | 1,569 | | -10 | % | 2,448 | | -42 | % |
Total Interest Expense | | 11,890 | | 12,743 | | -7 | % | 14,224 | | -16 | % |
| | | | | | | | | | | |
Net Interest Income Before Provision for Losses on Loans and Loan Commitments | | 29,239 | | 28,558 | | 2 | % | 20,981 | | 39 | % |
Provision for Losses on Loans and Loan Commitments | | 32,200 | | 17,000 | | 65 | % | 12,100 | | 166 | % |
Net Interest Income After Provision for Losses on Loans and Loan Commitments | | (2,961 | ) | 11,558 | | -126 | % | 8,881 | | -133 | % |
| | | | | | | | | | | |
NONINTEREST INCOME | | | | | | | | | | | |
Service Charges on Deposits | | 3,215 | | 3,224 | | 0 | % | 3,125 | | 3 | % |
Gain on Sales of Loans | | 1,444 | | 36 | | 3911 | % | 307 | | 370 | % |
Gain on Sale of Investment Securities | | 3,658 | | 2,484 | | 47 | % | 1,575 | | 132 | % |
FAS 141R gain on bargain purchase | | — | | — | | 0 | % | 21,679 | | -100 | % |
Other | | 1,561 | | 2,041 | | -24 | % | 1,904 | | -18 | % |
Total Noninterest Income | | 9,878 | | 7,785 | | 27 | % | 28,590 | | -65 | % |
| | | | | | | | | | | |
NONINTEREST EXPENSES | | | | | | | | | | | |
Salaries and Employee Benefits | | 7,284 | | 7,115 | | 2 | % | 5,988 | | 22 | % |
Occupancy & Equipment | | 1,946 | | 2,181 | | -11 | % | 1,682 | | 16 | % |
Data Processing | | 690 | | 637 | | 8 | % | 845 | | -18 | % |
Other | | 6,212 | | 4,757 | | 31 | % | 5,561 | | 12 | % |
Total Noninterest Expenses | | 16,132 | | 14,690 | | 10 | % | 14,076 | | 15 | % |
| | | | | | | | | | | |
Income Before Income Taxes | | (9,215 | ) | 4,653 | | -208 | % | 23,395 | | -139 | % |
Income Taxes (Benefit) Provision | | (5,551 | ) | 1,338 | | -201 | % | 9,649 | | -158 | % |
NET INCOME | | (3,664 | ) | 3,315 | | -210 | % | 13,746 | | -127 | % |
| | | | | | | | | | | |
Preferred Stock Cash Dividend and Accretion of Preferred Stock Discount | | 906 | | 903 | | 0 | % | 898 | | 1 | % |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | | $ | (4,570 | ) | $ | 2,412 | | -289 | % | $ | 12,848 | | -136 | % |
| | | | | | | | | | | |
PER COMMON SHARE INFORMATION | | | | | | | | | | | |
Basic Earnings Per Common Share | | $ | (0.15 | ) | $ | 0.08 | | -289 | % | $ | 0.44 | | -135 | % |
Diluted Earnings Per Common Share | | $ | (0.15 | ) | $ | 0.08 | | -289 | % | $ | 0.44 | | -135 | % |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | | | | | |
Basic | | 29,487,994 | | 29,484,006 | | | | 29,413,757 | | | |
Diluted | | 29,487,994 | | 29,537,933 | | | | 29,421,247 | | | |
(continued)
9
CONSOLIDATED STATEMENT OF OPERATIONS
(dollars in thousands, except per share data) (unaudited)
| | Six Month Ended | | One Year | |
| | June 30, 2010 | | June 30, 2009 | | % Change | |
| | | | | | | |
INTEREST INCOME | | | | | | | |
Interest and Fees on Loans | | $ | 71,383 | | $ | 61,428 | | 16 | % |
Interest on Investment Securities | | 10,371 | | 6,136 | | 69 | % |
Interest on Federal Funds Sold | | 676 | | 1,066 | | -37 | % |
Total Interest Income | | 82,430 | | 68,630 | | 20 | % |
| | | | | | | |
INTEREST EXPENSE | | | | | | | |
Deposits | | 21,650 | | 22,958 | | -6 | % |
FHLB Advances and Other Borrowings | | 2,983 | | 5,027 | | -41 | % |
Total Interest Expense | | 24,633 | | 27,985 | | -12 | % |
| | | | | | | |
Net Interest Income Before Provision for Losses on Loans and Loan Commitments | | 57,797 | | 40,645 | | 42 | % |
Provision for Losses on Loans and Loan Commitments | | 49,200 | | 18,800 | | 162 | % |
| | | | | | | |
Net Interest Income After Provision for Losses on Loans and Loan Commitments | | 8,597 | | 21,845 | | -61 | % |
| | | | | | | |
NONINTEREST INCOME | | | | | | | |
Service Charges on Deposits | | 6,439 | | 6,024 | | 7 | % |
Gain (Loss) on Sales of Loans | | 1,480 | | (524 | ) | 0 | % |
Gain on Sale of Investment Securities | | 6,142 | | 1,588 | | 287 | % |
FAS 141R gain on bargain purchase | | — | | 21,679 | | -100 | % |
Other | | 3,602 | | 3,560 | | 1 | % |
Total Noninterest Income | | 17,663 | | 32,327 | | -45 | % |
| | | | | | | |
NONINTEREST EXPENSES | | | | | | | |
Salaries and Employee Benefits | | 14,399 | | 12,195 | | 18 | % |
Occupancy & Equipment | | 4,127 | | 3,358 | | 23 | % |
Data Processing | | 1,327 | | 1,672 | | -21 | % |
Other | | 10,969 | | 8,837 | | 24 | % |
Total Noninterest Expenses | | 30,822 | | 26,062 | | 18 | % |
| | | | | | | |
Income Before Income Taxes | | (4,562 | ) | 28,110 | | -116 | % |
Income Taxes (Benefit) Provision | | (4,213 | ) | 11,304 | | -137 | % |
NET INCOME | | (349 | ) | 16,806 | | -102 | % |
| | | | | | | |
Preferred Stock Cash Dividend and Accretion of | | | | | | | |
Preferred Stock Discount | | 1,809 | | 1,818 | | 0 | % |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | | $ | (2,158 | ) | $ | 14,988 | | -114 | % |
| | | | | | | |
PER COMMON SHARE INFORMATION | | | | | | | |
Basic Earnings Per Common Share | | $ | (0.07 | ) | $ | 0.51 | | -114 | % |
Diluted Earnings Per Common Share | | $ | (0.07 | ) | $ | 0.51 | | -114 | % |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | |
Basic | | 29,486,011 | | 29,413,757 | | | |
Diluted | | 29,486,011 | | 29,421,746 | | | |
(continued)
10
SUMMARY OF FINANCIAL DATA
(dollars in thousands, except per share data) (unaudited)
| | Quarter Ended | |
AVERAGE BALANCES | | June 30, 2010 | | March 31, 2010 | | June 30, 2009 | |
| | | | | | | |
Average Assets | | $ | 3,475,151 | | $ | 3,417,633 | | $ | 2,691,508 | |
Average Equity | | 275,452 | | 273,293 | | 262,437 | |
Average Net Loans | | 2,367,860 | | 2,359,522 | | 2,060,306 | |
Average Deposits | | 2,939,513 | | 2,886,514 | | 2,000,690 | |
Average Time Deposits in denomination of $100,000 or more | | 751,094 | | 768,882 | | 964,175 | |
Average Interest Earning Assets | | 3,174,226 | | 3,155,853 | | 2,517,899 | |
| | | | | | | | | | |
| | Six Month Ended | |
AVERAGE BALANCES | | June 30, 2010 | | | | June 30, 2009 | |
| | | | | | | |
Average Assets | | $ | 3,446,551 | | | | $ | 2,608,802 | |
Average Equity | | 274,378 | | | | 260,764 | |
Average Net Loans | | 2,367,714 | | | | 2,045,532 | |
Average Deposits | | 2,913,160 | | | | 1,917,049 | |
Average Time Deposits in denomination of $100,000 or more | | 759,933 | | | | 964,175 | |
Average Interest Earning Assets | | 3,169,091 | | | | 2,434,494 | |
| | | | | | | | | |
| | Quarter Ended | |
PROFITABILITY | | June 30, 2010 | | March 31, 2010 | | June 30, 2009 | |
| | | | | | | |
Annualized Return on Average Assets | | -0.42 | % | 0.39 | % | 2.04 | % |
Annualized Return on Average Equity | | -5.32 | % | 4.85 | % | 20.95 | % |
Efficiency Ratio | | 41.24 | % | 40.42 | % | 28.40 | % |
Annualized Operating Expense/Average Assets | | 1.86 | % | 1.72 | % | 2.09 | % |
Annualized Net Interest Margin | | 3.71 | % | 3.65 | % | 3.33 | % |
| | Six Month Ended | |
PROFITABILITY | | June 30, 2010 | | | | June 30, 2009 | |
| | | | | | | |
Annualized Return on Average Assets | | -0.02 | % | | | 1.29 | % |
Annualized Return on Average Equity | | -0.25 | % | | | 12.29 | % |
Efficiency Ratio | | 40.85 | % | | | 35.72 | % |
Annualized Operating Expense/Average Assets | | 1.79 | % | | | 2.00 | % |
Annualized Net Interest Margin | | 3.68 | % | | | 3.33 | % |
| | Quarter Ended | |
DEPOSIT COMPOSITION | | June 30, 2010 | | Cost of
Funds | | March 31, 2010 | | Cost of
Funds | | June 30, 2009 | | Cost of
Funds | |
| | | | | | | | | | | | | |
Noninterest Bearing Demand Deposits | | 14.7 | % | 0.00 | % | 14.2 | % | 0.00 | % | 15.0 | % | 0.00 | % |
Savings & Interest Checking | | 3.5 | % | 2.57 | % | 3.3 | % | 2.55 | % | 3.0 | % | 2.90 | % |
Money Market Deposits | | 31.3 | % | 1.56 | % | 33.5 | % | 1.68 | % | 24.2 | % | 2.54 | % |
Time Deposits of $100,000 or More | | 25.9 | % | 1.55 | % | 25.5 | % | 1.59 | % | 46.4 | % | 2.72 | % |
Other Time Deposits | | 24.6 | % | 2.00 | % | 23.5 | % | 2.07 | % | 11.0 | % | 3.35 | % |
Total Deposits | | 100.0 | % | 1.43 | % | 100.0 | % | 1.55 | % | 100.0 | % | 2.35 | % |
| | Quarter Ended | |
CAPITAL RATIOS | | June 30, 2010 | | March 31, 2010 | | June 30, 2009 | |
| | | | | | | |
Tier 1 Leverage Ratio | | 9.51 | % | 9.78 | % | 12.30 | % |
Tier 1 Risk-Based Capital Ratio | | 13.72 | % | 14.50 | % | 13.26 | % |
Total Risk-Based Capital Ratio | | 15.17 | % | 15.95 | % | 14.75 | % |
Total Shareholders’ Equity | | $ | 267,435 | | $ | 270,695 | | $ | 269,158 | |
Book Value Per Common Share | | $ | 7.03 | | $ | 7.14 | | $ | 7.12 | |
Tangible Common Equity Per Common Share * | | $ | 6.74 | | $ | 6.85 | | $ | 6.81 | |
Tangible Common Equity to Tangible Assets ** | | 5.80 | % | 5.86 | % | 6.33 | % |
* Tangible common equity excludes goodwill, other intangible assets, and TARP preferred stock
** Tangible assets excludes goodwill and intangible assets
(continued)
11
SUMMARY OF FINANCIAL DATA
(dollars in thousands, except per share data) (unaudited)
ALLOWANCE FOR LOAN LOSSES
(net of SBA guaranteed portions)
| | Quarter Ended | |
| | June 30, 2010 | | March 31, 2010 | | December 31, 2009 | | September 30, 2009 | | June 30, 2009 | |
| | | | | | | | | | | |
Balance at Beginning of Period | | $ | 79,576 | | $ | 62,130 | | $ | 54,735 | | $ | 38,758 | | $ | 34,156 | |
Provision for Losses on Loans | | 31,269 | | 16,930 | | 24,540 | | 23,967 | | 11,812 | |
FDIC Indemnification | | (3,140 | ) | 5,831 | | 856 | | — | | — | |
Recoveries on loans previously charged-off | | 872 | | 512 | | 654 | | 223 | | 262 | |
Less Charge-offs | | (17,158 | ) | (5,827 | ) | (18,655 | ) | (8,213 | ) | (7,472 | ) |
Balance at End of Period | | $ | 91,419 | | $ | 79,576 | | $ | 62,130 | | $ | 54,735 | | $ | 38,758 | |
| | | | | | | | | | | |
Net Loan Charge-offs/Average Total Loans | | 0.67 | % | 0.22 | % | 0.74 | % | 0.33 | % | 0.34 | % |
Charge-offs/Average Total Loans | | 0.70 | % | 0.24 | % | 0.76 | % | 0.34 | % | 0.36 | % |
Allowance for Loan Losses/Total Loans | | 3.72 | % | 3.29 | % | 2.56 | % | 2.24 | % | 1.62 | % |
Allowance for Loan Losses/Legacy Wilshire Loans | | 4.11 | % | 3.66 | % | 2.86 | % | 2.52 | % | 1.83 | % |
Allowance for Loan Losses/Non-accrual Loans | | 109.99 | % | 75.77 | % | 89.47 | % | 70.72 | % | 78.58 | % |
Allowance for Loan Losses/Non-performing Loans | | 108.89 | % | 75.77 | % | 87.78 | % | 70.02 | % | 78.38 | % |
Allowance for Loan Losses/Total Assets | | 2.66 | % | 2.30 | % | 1.81 | % | 1.62 | % | 1.22 | % |
Allowance for Loan Losses/Non-performing Assets | | 101.02 | % | 72.42 | % | 83.31 | % | 64.85 | % | 71.62 | % |
NON-PERFORMING ASSETS
(net of SBA guaranteed portions)
| | Quarter Ended | |
| | June 30, 2010 | | March 31, 2010 | | December 31, 2009 | | September 30, 2009 | | June 30, 2009 | |
Nonaccrual Loans: | | | | | | | | | | | |
Non-covered Loans | | $ | 64,285 | | $ | 83,115 | | $ | 51,118 | | $ | 52,386 | | $ | 35,032 | |
Covered Loans | | 18,831 | | 21,909 | | 18,328 | | 25,007 | | 14,290 | |
Total | | 83,116 | | 105,024 | | 69,446 | | 77,393 | | 49,322 | |
| | | | | | | | | | | |
Loans 90 days or more past due and still accruing: | | | | | | | | | | | |
Non-covered Loans | | 1 | | — | | 1,336 | | — | | 128 | |
Covered Loans | | — | | — | | — | | 772 | | — | |
Total | | 1 | | — | | 1,336 | | 772 | | 128 | |
| | | | | | | | | | | |
Total Nonperforming Loans: | | | | | | | | | | | |
Non-covered Loans | | 64,286 | | 83,115 | | 52,455 | | 52,386 | | 35,160 | |
Covered Loans | | 18,831 | | 21,909 | | 18,327 | | 25,779 | | 14,290 | |
Total | | 84,117 | | 105,024 | | 70,782 | | 78,165 | | 49,450 | |
| | | | | | | | | | | |
OREO and Repossessed Vehicles: | | | | | | | | | | | |
Non-covered Loans | | 4,346 | | 3,136 | | 3,297 | | 5,738 | | 5,456 | |
Covered Loans | | 2,194 | | 1,723 | | 500 | | 500 | | 500 | |
Total | | 6,540 | | 4,859 | | 3,797 | | 6,238 | | 5,956 | |
| | | | | | | | | | | |
Total Nonperforming Assets: | | | | | | | | | | | |
Non-covered Loans | | 68,632 | | 86,251 | | 55,752 | | 58,124 | | 40,616 | |
Covered Loans | | 21,025 | | 23,632 | | 18,827 | | 26,279 | | 14,790 | |
Total | | 89,657 | | $ | 109,883 | | $ | 74,579 | | $ | 84,403 | | $ | 55,406 | |
| | | | | | | | | | | |
Total Nonperforming Loans/Gross Loans | | 3.38 | % | 4.34 | % | 2.92 | % | 3.20 | % | 2.01 | % |
| | | | | | | | | | | |
Total Nonperforming Assets/Total Assets | | 2.61 | % | 3.18 | % | 2.17 | % | 2.50 | % | 1.70 | % |
| | | | | | | | | | | | | | | | |
Performing Troubled Debt Restructured (TDR) Loans
(dollars in thousands)
| | Quarter Ended | |
| | June 30, 2010 | | March 31, 2010 | |
| | COVERED | | NON-COVERED | | TOTAL | | COVERED | | NON-COVERED | | TOTAL | |
| | | | | | | | | | | | | |
Construction | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
Real Estate Secured | | 2,804 | | 49,289 | | 52,093 | | 8,135 | | 46,024 | | 54,159 | |
Commercial & Industrial | | 202 | | 802 | | 1,004 | | — | | 474 | | 474 | |
Consumer | | — | | — | | — | | — | | — | | — | |
TOTAL PERFORMING TDR LOANS | | $ | 3,006 | | $ | 50,091 | | $ | 53,097 | | $ | 8,135 | | $ | 46,498 | | $ | 54,633 | |
(continued)
12
LOAN ORIGINATION AMOUNT
| | Quarter Ended | |
| | June 30, 2010 | | March 31, 2010 | | December 31, 2009 | | September 30, 2009 | | June 30, 2009 | |
| | | | | | | | | | | |
Total new loan origination amount, excluding renewal. | | $ | 186,121 | | $ | 87,288 | | $ | 125,281 | | $ | 183,859 | | $ | 159,334 | |
SBA new loan origination amount, excluding renewal. | | $ | 32,630 | | $ | 23,471 | | $ | 17,158 | | $ | 15,592 | | $ | 12,456 | |
| | Six month Ended | | | | | | | | | | |
| | June 30, 2010 | | June 30, 2009 | | | | | | | | | | |
| | | | | | | | | | | | | | |
Total new loan origination amount, excluding renewal. | | $ | 273,409 | | $ | 224,172 | | | | | | | | | | |
SBA new loan origination amount, excluding renewal. | | $ | 56,101 | | $ | 18,732 | | | | | | | | | | |
ALLOWANCE FOR LOAN LOSSES
(net of SBA guaranteed portion)
| | Six Month Ended | | | | | | | | | | |
| | June 30, 2010 | | June 30, 2009 | | | | | | | | | | |
| | | | | | | | | | | | | | |
Balance at beginning of period | | $ | 62,130 | | $ | 29,437 | | | | | | | | | | |
Provision for losses on loans | | 48,199 | | 18,821 | | | | | | | | | | |
FDIC Indemnification | | 2,691 | | — | | | | | | | | | | |
Recoveries on loans previously charged off | | 1,384 | | 375 | | | | | | | | | | |
Less charge-offs | | (22,985 | ) | (9,875 | ) | | | | | | | | | |
Balance at end of period | | $ | 91,419 | | $ | 38,758 | | | | | | | | | | |
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS
(Non-covered loan only)
(net of SBA guaranteed portions)
| | Six Months Ended | | | | | | | | | | |
| | June 30, 2010 | | June 30, 2009 | | | | | | | | | | |
| | | | | | | | | | | | | | |
Balance at beginning of period | | $ | 2,515 | | $ | 1,243 | | | | | | | | | | |
Provision for (recapture of) losses on off-balance sheet items | | 1,001 | | (22 | ) | | | | | | | | | |
Balance at end of period | | $ | 3,516 | | $ | 1,221 | | | | | | | | | | |
Reconciliation of GAAP financial measures to non-GAAP financial measures:
| | June 30, 2010 | | December 31, 2009 | | June 30, 2009 | | | | | | | |
Total stockholders’ equity | | $ | 267,435 | | $ | 266,136 | | $ | 269,158 | | | | | | | |
Preferred stock, net of discount | | (60,186 | ) | (59,931 | ) | (59,683 | ) | | | | | | |
Goodwill and other intangible assets, net | | (8,504 | ) | (8,688 | ) | (9,145 | ) | | | | | | |
Tangible common equity | | $ | 198,745 | | $ | 197,517 | | $ | 200,330 | | | | | | | |
| | | | | | | | | | | | | |
Total assets | | $ | 3,437,094 | | $ | 3,435,997 | | $ | 3,174,111 | | | | | | | |
Goodwill and other intangible assets, net | | (8,504 | ) | (8,688 | ) | (9,145 | ) | | | | | | |
Tangible assets | | $ | 3,428,590 | | $ | 3,427,309 | | $ | 3,164,966 | | | | | | | |
| | | | | | | | | | | | | |
Common shares outstanding | | 29,486,734 | | 29,415,657 | | 29,413,757 | | | | | | | |
(continued)
13
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(dollars in thousands) (unaudited)
| | For the Quarter Ended | |
| | June 30, 2010 | | March 31, 2010 | | June 30, 2009 | |
| | | | Interest | | Average | | | | Interest | | Average | | | | Interest | | Average | |
| | Average | | Income/ | | Yield/ | | Average | | Income/ | | Yield/ | | Average | | Income/ | | Yield/ | |
| | Balance | | Expense | | Rate | | Balance | | Expense | | Rate | | Balance | | Expense | | Rate | |
INTEREST EARNING ASSETS | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Real Estate Loans | | $ | 2,058,774 | | $ | 29,848 | | 5.80 | % | $ | 2,030,514 | | $ | 29,053 | | 5.72 | % | $ | 1,700,543 | | $ | 25,886 | | 6.09 | % |
Commercial Loans | | 378,752 | | 5,363 | | 5.66 | % | 382,589 | | 5,308 | | 5.55 | % | 379,394 | | 4,569 | | 4.82 | % |
Consumer Loans | | 17,584 | | 180 | | 4.09 | % | 16,474 | | 180 | | 4.38 | % | 18,693 | | 256 | | 5.47 | % |
Total Gross Loans | | 2,455,110 | | 35,391 | | 5.77 | % | 2,429,577 | | 34,541 | | 5.69 | % | 2,098,630 | | 30,711 | | 5.85 | % |
Loan Fees toward Yield | | | | 688 | | | | | | 763 | | | | | | 523 | | | |
Allowance for Loan Losses & Unearned Income | | (87,250 | ) | | | | | (70,055 | ) | | | | | (38,324 | ) | | | | |
Net Loans | | 2,367,860 | | 36,079 | | 6.09 | % | 2,359,522 | | 35,304 | | 5.98 | % | 2,060,306 | | 31,234 | | 6.06 | % |
| | | | | | | | | | | | | | | | | | | |
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS: | | | | | | | | | | | | | | | | | | | |
Investment Securities* | | 647,782 | | 4,756 | | 3.08 | % | 665,366 | | 5,615 | | 3.52 | % | 324,302 | | 3,194 | | 3.94 | % |
Federal Funds Sold | | 158,584 | | 294 | | 0.74 | % | 130,965 | | 382 | | 1.17 | % | 133,140 | | 777 | | 2.34 | % |
Total Investment Securities and Other Earning Assets | | 806,366 | | 5,050 | | 2.62 | % | 796,331 | | 5,997 | | 3.13 | % | 457,442 | | 3,971 | | 3.47 | % |
| | | | | | | | | | | | | | | | | | | |
TOTAL INTEREST-EARNING ASSETS | | $ | 3,174,226 | | $ | 41,129 | | 5.21 | % | $ | 3,155,853 | | $ | 41,301 | | 5.27 | % | $ | 2,517,748 | | $ | 35,205 | | 5.59 | % |
| | | | | | | | | | | | | | | | | | | |
INTEREST BEARING LIABILITIES | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
INTEREST-BEARING DEPOSITS: | | | | | | | | | | | | | | | | | | | |
Money Market | | $ | 972,096 | | $ | 3,542 | | 1.46 | % | $ | 956,035 | | $ | 4,023 | | 1.68 | % | $ | 436,066 | | $ | 2,774 | | 2.54 | % |
NOW | | 22,019 | | 26 | | 0.47 | % | 22,481 | | 29 | | 0.52 | % | 19,142 | | 46 | | 0.96 | % |
Savings | | 75,677 | | 617 | | 3.26 | % | 74,052 | | 586 | | 3.17 | % | 48,511 | | 444 | | 3.66 | % |
Time Deposits of $100,000 or More | | 751,094 | | 2,762 | | 1.47 | % | 768,882 | | 3,047 | | 1.59 | % | 994,514 | | 6,751 | | 2.72 | % |
Other Time Deposits | | 702,866 | | 3,529 | | 2.01 | % | 675,764 | | 3,489 | | 2.07 | % | 221,020 | | 1,761 | | 3.35 | % |
Total Interest Bearing Deposits | | 2,523,752 | | 10,476 | | 1.66 | % | 2,497,214 | | 11,174 | | 1.79 | % | 1,719,253 | | 11,776 | | 2.76 | % |
| | | | | | | | | | | | | | | | | | | |
BORROWINGS: | | | | | | | | | | | | | | | | | | | |
FHLB Advances and Other Borrowings | | 138,805 | | 750 | | 2.16 | % | 148,000 | | 920 | | 2.49 | % | 321,434 | | 1,622 | | 2.02 | % |
Junior Subordinated Debentures | | 87,321 | | 664 | | 3.04 | % | 87,321 | | 649 | | 2.97 | % | 87,321 | | 826 | | 3.78 | % |
Total Borrowings | | 226,126 | | 1,414 | | 2.50 | % | 235,321 | | 1,569 | | 2.67 | % | 408,755 | | 2,448 | | 2.40 | % |
| | | | | | | | | | | | | | | | | | | |
TOTAL INTEREST BEARING LIABILITIES | | $ | 2,749,878 | | $ | 11,890 | | 1.73 | % | $ | 2,732,535 | | $ | 12,743 | | 1.87 | % | $ | 2,128,008 | | $ | 14,224 | | 2.69 | % |
| | | | | | | | | | | | | | | | | | | |
NET INTEREST INCOME | | | | $ | 29,239 | | | | | | $ | 28,558 | | | | | | $ | 20,981 | | | |
| | | | | | | | | | | | | | | | | | | |
NET INTEREST SPREAD | | | | | | 3.48 | % | | | | | 3.40 | % | | | | | 2.91 | % |
| | | | | | | | | | | | | | | | | | | |
NET INTEREST MARGIN | | | | | | 3.71 | % | | | | | 3.65 | % | | | | | 3.33 | % |
* Tax equivalent ratios for investment securities
(continued)
14
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, 2010 | | June 30, 2009 | |
| | | | Interest | | Average | | | | Interest | | Average | |
| | Average | | Income/ | | Yield/ | | Average | | Income/ | | Yield/ | |
| | Balance | | Expense | | Rate | | Balance | | Expense | | Rate | |
INTEREST EARNING ASSETS | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Real Estate Loans | | $ | 2,047,644 | | $ | 58,901 | | 5.75 | % | $ | 1,667,831 | | $ | 50,792 | | 6.05 | % |
Commercial Loans | | 381,671 | | 10,671 | | 5.59 | % | 384,026 | | 8,987 | | 4.68 | % |
Consumer Loans | | 17,052 | | 360 | | 4.22 | % | 19,915 | | 556 | | 5.59 | % |
Total Gross Loans | | 2,446,367 | | 69,932 | | 5.72 | % | 2,071,772 | | 60,335 | | 5.80 | % |
Loan Fees toward Yield | | | | 1,451 | | | | | | 1,093 | | | |
Allowance for Loan Losses & Unearned Income | | (78,653 | ) | | | | | (36,221 | ) | | | | |
Net Loans | | 2,367,714 | | 71,383 | | 6.03 | % | 2,035,551 | | 61,428 | | 6.01 | % |
| | | | | | | | | | | | | |
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS: | | | | | | | | | | | | | |
Investment Securities* | | 656,526 | | 10,371 | | 3.30 | % | 305,532 | | 6,136 | | 4.02 | % |
Federal Funds Sold | | 144,851 | | 676 | | 0.93 | % | 89,631 | | 1,066 | | 2.38 | % |
Total Investment Securities and Other Earning Assets | | 801,377 | | 11,047 | | 2.88 | % | 395,163 | | 7,202 | | 3.65 | % |
| | | | | | | | | | | | | |
TOTAL INTEREST-EARNING ASSETS | | $ | 3,169,091 | | $ | 82,430 | | 5.23 | % | $ | 2,430,714 | | $ | 68,630 | | 5.62 | % |
| | | | | | | | | | | | | |
INTEREST BEARING LIABILITIES | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
INTEREST-BEARING DEPOSITS: | | | | | | | | | | | | | |
Money Market | | $ | 964,110 | | $ | 7,564 | | 1.57 | % | $ | 399,602 | | $ | 5,106 | | 2.56 | % |
NOW | | 22,249 | | 55 | | 0.49 | % | 19,348 | | 91 | | 0.94 | % |
Savings | | 74,869 | | 1,203 | | 3.21 | % | 45,891 | | 837 | | 3.65 | % |
Time Deposits of $100,000 or More | | 759,933 | | 5,809 | | 1.53 | % | 964,175 | | 13,420 | | 2.78 | % |
Other Time Deposits | | 689,396 | | 7,019 | | 2.04 | % | 203,401 | | 3,504 | | 3.45 | % |
Total Interest Bearing Deposits | | 2,510,557 | | 21,650 | | 1.72 | % | 1,632,417 | | 22,958 | | 2.81 | % |
| | | | | | | | | | | | | |
BORROWINGS: | | | | | | | | | | | | | |
FHLB Advances and Other Borrowings | | 143,377 | | 1,670 | | 2.33 | % | 324,373 | | 3,280 | | 2.02 | % |
Junior Subordinated Debentures | | 87,321 | | 1,313 | | 3.01 | % | 87,321 | | 1,747 | | 4.00 | % |
Total Borrowings | | 230,698 | | 2,983 | | 2.59 | % | 411,694 | | 5,027 | | 2.44 | % |
| | | | | | | | | | | | | |
TOTAL INTEREST BEARING LIABILITIES | | $ | 2,741,255 | | $ | 24,633 | | 1.80 | % | $ | 2,044,111 | | $ | 27,985 | | 2.74 | % |
| | | | | | | | | | | | | |
NET INTEREST INCOME | | | | $ | 57,797 | | | | | | $ | 40,645 | | | |
| | | | | | | | | | | | | |
NET INTEREST SPREAD | | | | | | 3.44 | % | | | | | 2.89 | % |
| | | | | | | | | | | | | |
NET INTEREST MARGIN | | | | | | 3.68 | % | | | | | 3.33 | % |
* Tax equivalent ratios for investment securities
(concluded)
15
