Exhibit 99.1
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WILSHIRE BANCORP, INC. CONTACT: Alex Ko, EVP & CFO, (213) 427-6560 www.wilshirebank.com | NEWS RELEASE |
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Wilshire Bancorp Reports Preliminary Financial Results for Second Quarter 2011
Preliminary Q2 2011 Summary:
· Preliminary net loss available to common shareholders of $4.6 million, or ($0.09) per share, includes a preliminary estimated non-cash goodwill impairment charge of $6.7 million, which represents the entire remaining balance of goodwill.
· Excluding estimated non-cash goodwill impairment charge, preliminary net income available to common shareholders of $2.1 million or $0.04 per share
· Substantial improvement in asset quality including a reduction in non-performing loans, delinquent loans, TDR loans, impaired loans, and charge-offs
· Successful capital raise of $109 million in common stock (net of underwriting fees)
· All capital ratios significantly improved from prior quarter
LOS ANGELES, July 25, 2011 - Wilshire Bancorp, Inc. (NASDAQ: WIBC), the holding company (“the Company”) for Wilshire State Bank (“the Bank”), today reported that it expects a net loss available to common shareholders of $4.6 million, or ($0.09) per basic and diluted share, for the quarter ended June 30, 2011, which includes a preliminary estimated non-cash goodwill impairment charge of $6.7 million. This compares to a net loss available to common shareholders of $4.6 million, or ($0.15) per basic and diluted share, for the same period of the prior year, and a net loss available to common shareholders of $52.1 million, or ($1.77) per basic and diluted share, in the first quarter of 2011. All financial results reported in this press release for the quarter and/or six months ended June 30, 2011 are preliminary and could change depending on finalization of the actual impairment charge to goodwill (please see discussion of goodwill impairment charge below).
Excluding the preliminary non-cash goodwill impairment charge, the Company expects to report net income available to common shareholders of $2.1 million, or $0.04 per fully diluted share, for the second quarter of 2011. The expected improvement in financial results, net of the preliminary expected charge to goodwill, compared to the first quarter of 2011 is primarily attributable to an improvement in asset quality and a reduction in credit costs. The results discussed in this paragraph reflect the use of non-GAAP financial metrics; a reconciliation to GAAP financial metrics is included at the end of this release.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, “We are very pleased with the substantial improvement in our financial performance in the second quarter of 2011, which reflects the continued strength of our earnings power along with the results of our aggressive actions to resolve problem loans and reduce our credit costs. We are executing well on the plan we have outlined to return Wilshire Bancorp to its historical level of profitability. During the second quarter, we achieved two key milestones in our plan: 1) strengthening our capital position through a $109 million stock offering; and 2) significantly reducing our problem loans.
Wilshire Bancorp Inc. – 2Q 2011 Results
July 25, 2011
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“We also saw encouraging signs of stability in our loan portfolio, as evidenced by reduced inflow into delinquent and non-accrual loans during the second quarter. Given a continuation of the positive trends in our asset quality, we believe that our credit costs will remain manageable and we can steadily increase our profitability in the foreseeable future,” said Mr. Yoo.
Goodwill Impairment
As a result of the decline in its stock price and market capitalization, Wilshire Bancorp has determined that it is probable that the goodwill related to the acquisition of the Company’s East Coast branches has been impaired. The Company is currently implementing the second step of the analysis to determine the extent to which the goodwill is impaired. The Company has recorded a preliminary non-cash goodwill impairment charge in the amount of $6.7 million, which represents a write-down of all of the goodwill currently carried on the balance sheet. Once the second step of the goodwill impairment analysis is completed, the Company may determine that no impairment or a charge of less than $6.7 million is required. The Company expects to complete the goodwill impairment test by the time it files its quarterly report on Form 10-Q for the quarter ended June 30, 2011.
The preliminary non-cash goodwill impairment charge has no significant effect on the Company’s liquidity, operations, or capital ratios.
STATEMENT OF OPERATIONS
Net interest Income and Margin
Net interest income before provision for loan losses totaled $27.3 million in the second quarter of 2011, a decrease of 6.5% from $29.2 million in the second quarter of 2010, and a decrease of 6.7% from $29.3 million in the first quarter of 2011. The decrease in net interest income on a linked quarter basis was primarily attributable to a decline in total loans as result of management’s plan to aggressively reduce problem loans, which was partially offset by a reduction in interest expense.
Net interest margin was 4.42% in the second quarter of 2011, compared to 3.72% in the second quarter of 2010 and 4.53% in the first quarter of 2011. The decrease in net interest margin from the previous quarter is primarily attributable to higher balances of Federal Funds Sold, which resulted from funds that became available through the capital raise and loan sales. As the Company utilizes these funds through investment purchases and loan originations, the negative impact to net interest margin will be reduced.
Net interest margin on a year to date basis increased to 4.46% at June 30, 2011 from 3.69% for the same period of the previous year. The increase in margin reflects a large decrease in cost of liabilities which decreased to 1.14% from 1.80% for the same period.
Non-Interest Income
Total non-interest income declined to $4.1 million for the quarter ending June 30, 2011 compared to $8.7 million for the previous quarter and $9.9 million for the quarter ending June 30, 2010.
Net gain on sale of loans declined to a loss of $1.3 million for the quarter ending June 30, 2011 compared to a $3.6 million gain for the quarter ending March 31, 2011. The net loss on sale of loans for the quarter ending June 30, 2011 consists of $4.6 million in gains from SBA loan sales offset by a net loss of $5.9 million from the sale of CRE loans. The $5.9 million loss on CRE loan sales resulted from lower pricing received on loan sales compared to previous markdowns on the loans held for sale for the first quarter of 2011 which were marked down to their fair values at March 31, 2011.
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Wilshire Bancorp Inc. – 2Q 2011 Results
July 25, 2011
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Although overall deposits declined from the first to second quarter of 2011, service charge on deposits accounts increased by 2% to $3.1 million. Other non-interest income totaled $2.2 million for the second quarter of 2011, an increase from $2.0 million for the first quarter of 2011 and $1.6 million for the second quarter of 2010. The increase in other non-interest income was attributable to an increase in loan fees for the second quarter of 2011, compared to the previous quarter and the same quarter of the previous year.
Non-Interest Expense
Total non-interest expense was $25.6 million in the second quarter of 2011, compared with $17.5 million in the prior quarter and $16.1 million for the second quarter of 2010. Total non-interest expense for the second quarter of 2011 includes the preliminary estimated $6.7 million non-cash goodwill impairment charge previously discussed.
Total salaries and employee benefits decreased to $6.8 million in the second quarter of 2011, from $7.8 million in the prior quarter and $7.3 million in the second quarter of 2010. The decrease is primarily due to the reduction in staff during the first quarter of this year.
Other non-interest expenses for the second quarter of 2011 totaled $9.4 million, an increase of $2.4 million and $3.1 million from the first quarter of 2011 and the second quarter of 2010, respectively. This increase was largely attributable to $2.3 million in valuation allowance expenses related to the further markdown of held-for-sale loans that were carried over from the first to second quarter of 2011.
BALANCE SHEET
Total loans including loans held-for-sale totaled $2.08 billion at June 30, 2011, compared to $2.28 billion at March 31, 2011. The decrease was primarily due to $68.8 million in note sales, $14.2 million in charge-offs, and pay-downs during the second quarter of 2011. Loan originations for the second quarter of 2011 were approximately $50.3 million (excluding SBA and residential mortgage loans). This compares to total loan originations (excluding SBA and residential mortgage loans) of $69.1 million during the first quarter of 2011.
The Company originated $27.7 million in SBA loans during the second quarter of 2011, compared to $48.5 million in the previous quarter. SBA loan originations were elevated in the fourth quarter of 2010 and first quarter of 2011 due to the implementation of the Small Business Lending Program, in which SBA loan guarantees were increased to 90% for certain loans. With the end of the program in February 2011, the Company’s SBA loan originations declined to previous levels for the second quarter of 2011.
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Wilshire Bancorp Inc. – 2Q 2011 Results
July 25, 2011
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Loan Categories
GROSS LOANS BY TYPE (Dollars In Thousands)
| | Quarter Ended | |
Non-Covered Loans | | Jun 30, 2011 | | | Mar 31, 2011 | | | Dec 31, 2010 | | | Sep 30, 2010 | | | Jun 30, 2010 | |
| | | | | | | | | | | | | | | |
Construction | | $ | 70,304 | | | $ | 74,538 | | | $ | 72,258 | | | $ | 70,808 | | | $ | 59,376 | |
Real Estate Secured | | 1,548,559 | | | 1,725,298 | | | 1,757,328 | | | 1,832,726 | | | 1,830,387 | |
Commercial & Industrial | | 260,990 | | | 274,392 | | | 276,739 | | | 308,277 | | | 316,370 | |
Consumer | | 15,350 | | | 14,587 | | | 15,574 | | | 16,937 | | | 18,265 | |
Total Non-Covered Gross Loans | | $ | 1,895,203 | | | $ | 2,088,815 | | | $ | 2,121,899 | | | $ | 2,228,748 | | | $ | 2,224,398 | |
| | | | | | | | | | | | | | | |
Covered Loans | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Construction | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
Real Estate Secured | | 154,020 | | | 154,655 | | | 159,699 | | | 166,490 | | | 179,124 | |
Commercial & Industrial | | 38,170 | | | 45,024 | | | 49,680 | | | 53,613 | | | 56,357 | |
Consumer | | 96 | | | 104 | | | 111 | | | 125 | | | 150 | |
Total Covered Gross Loans | | $ | 192,286 | | | $ | 199,783 | | | $ | 209,490 | | | $ | 220,228 | | | $ | 235,631 | |
| | | | | | | | | | | | | | | |
Total Gross Loans | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Construction | | $ | 70,304 | | | $ | 74,538 | | | $ | 72,258 | | | $ | 70,808 | | | $ | 59,376 | |
Real Estate Secured | | 1,702,579 | | | 1,879,953 | | | 1,917,027 | | | 1,999,216 | | | 2,009,511 | |
Commercial & Industrial | | 299,160 | | | 319,416 | | | 326,419 | | | 361,890 | | | 372,727 | |
Consumer | | 15,446 | | | 14,691 | | | 15,685 | | | 17,062 | | | 18,415 | |
Total Gross Loans | | $ | 2,087,489 | | | $ | 2,288,598 | | | $ | 2,331,389 | | | $ | 2,448,976 | | | $ | 2,460,029 | |
Total deposits were $2.15 billion at June 30, 2011, down from $2.27 billion at March 31, 2011. The decline was primarily in higher cost deposit accounts.
Total other real estate owned (OREOs) was $8.5 million at June 30, 2011, unchanged from $8.5 million at March 31, 2011. Outflow from OREO in the second quarter of 2011 consisted of 13 sold properties totaling approximately $5.8 million. Inflows to OREO in the second quarter of 2011 consisted of 12 properties totaling approximately $5.7 million.
CREDIT QUALITY
The Company’s credit quality improved in the second quarter of 2011 with declines in net charge-offs, non-accrual loans, impaired loans, and classified loans. As a result of the improved credit quality, the Company’s provision for loan losses declined to $10.3 million in the second quarter of 2011, compared to $44.8 million in the prior quarter.
The allowance for loan losses was $111.0 million, or 5.32% of gross loans, at June 30, 2011, compared to $114.8 million, or 5.02% of gross loans, at March 31, 2011. The coverage ratio of allowance for loan losses to non-performing assets was 128.4% at June 30, 2011, compared with 129.6% at March 31, 2011. Allowance coverage of legacy Wilshire loans (i.e. loans originated at Wilshire as opposed to Mirae Bank) increased to 5.86% at June 30, 2011 from 5.50% at March 31, 2011.
As a result of the improvement in credit quality and the strengthened capital position following the capital raise, the Company’s ratio of legacy classified assets to Tier 1 capital plus reserves was 36.4% at June 30, 2011. The requirement for legacy classified assets to Tier 1 capital plus reserves ratio for the Bank stated in the memorandum of understanding (“MOU”) with regulators is a maximum of 50% with which the Bank is in compliance.
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Wilshire Bancorp Inc. – 2Q 2011 Results
July 25, 2011
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Note Sales
The Company sold approximately $68.8 million in held for sale loans (not including SBA or mortgage loans) during the second quarter of 2011 and received proceeds of $62.9 million. Approximately $43.1 million of these loans were sold in a bulk sale transaction and approximately $25.7 million were sold in individual transactions. These loans included $17.4 million in non-accrual loans, $9.0 million in performing troubled debt restructured loans, and $6.1 million in delinquent loans.
As a result of the pricing received on the loan sales, the Company recorded a net $5.9 million loss on sale of loans. The Company also recorded a $2.3 million valuation allowance against loans that remained as loans held-for-sale at June 30, 2011. Market conditions for loan sales had somewhat deteriorated in the second quarter, and therefore management decided to look for better loan pricing in the future.
During the second quarter of 2011, the Company transferred approximately $29 million in loans to held-for-sale status. The loans were marked to their fair values, which resulted in $9.1 million in charge-offs for the second quarter of 2011. The Company intends to sell these loans on an individual basis during the second half of 2011.
As of June 30, 2011, the Company had $66.4 million in loans held-for-sale, comprised of $14.2 million in SBA loans, $8.9 million in residential loans, and $43.3 million in commercial real estate loans. Of the $43.3 million in commercial real estate loans, $40.8 million were classified assets and $29.8 million were non-accrual loans. The reduction in held for sale loans from $136.8 million at March 31, 2011 to $66.4 million at June 30, 2011 reflects management’s strategy to be more selective in terms of note sales, as well as the improvement in overall credit quality. The Company does not expect future note sales through bulk sale transactions.
Non-accrual Loans
At June 30, 2011, total non-covered non-accrual loans were $59.4 million, or 3.13% of gross non-covered loans, compared to $62.1 million, or 2.97% of loans, at March 31, 2011.
The following is a table shows “covered” and “non-covered” non-accrual loans by loan type:
NON-ACCRUAL LOANS (Dollars In Thousands)
(Net of SBA Guaranteed Portions) | | Quarter Ended | |
Non-Covered Loans | | Jun 30, 2011 | | | Mar 31, 2011 | | | Dec 31, 2010 | | | Sep 30, 2010 | | | Jun 30, 2010 | |
| | | | | | | | | | | | | | | |
Construction | | $ | 12,000 | | | $ | - | | | $ | - | | | $ | 2,660 | | | $ | - | |
Real Estate Secured | | 46,447 | | | 60,363 | | | 59,571 | | | 56,779 | | | 61,200 | |
Commercial & Industrial | | 808 | | | 1,695 | | | 1,284 | | | 3,272 | | | 3,051 | |
Consumer | | 144 | | | 11 | | | 27 | | | 37 | | | 34 | |
Total Non-Covered Non-Accrual Loans | | $ | 59,399 | | | $ | 62,069 | | | $ | 60,882 | | | $ | 62,748 | | | $ | 64,285 | |
| | | | | | | | | | | | | | | |
Covered Loans | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Real Estate Secured | | $ | 16,392 | | | $ | 16,269 | | | $ | 8,005 | | | $ | 10,569 | | | $ | 17,232 | |
Commercial & Industrial | | 2,151 | | | 1,795 | | | 2,345 | | | 3,031 | | | 1,599 | |
Total Covered Non-Accrual Loans | | $ | 18,543 | | | $ | 18,064 | | | $ | 10,350 | | | $ | 13,600 | | | $ | 18,831 | |
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Total Non-Accrual Loans | | | | | | | | | | | | | | | |
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Construction | | $ | 12,000 | | | $ | - | | | $ | - | | | $ | 2,660 | | | $ | - | |
Real Estate Secured | | 62,839 | | | 76,632 | | | 67,576 | | | 67,348 | | | 78,432 | |
Commercial & Industrial | | 2,959 | | | 3,490 | | | 3,629 | | | 6,303 | | | 4,650 | |
Consumer | | 144 | | | 11 | | | 27 | | | 37 | | | 34 | |
Total Non-Accrual Loans | | $ | 77,942 | | | $ | 80,133 | | | $ | 71,232 | | | $ | 76,348 | | | $ | 83,116 | |
The increase in non-accrual construction loans is attributable to one commercial construction loan for a project in California. This loan totaling $12.0 million was classified as delinquent during the first quarter of
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July 25, 2011
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2011 and the Company had established a specific reserve against it based on an impairment analysis. During the second quarter of 2011, the Company transferred this loan to held-for-sale and charged-off the specific reserve. It is expected that there will be minimal additional loss exposure from this loan. Real estate secured, commercial and industrial non-accrual loans experienced large decreases from the first to second quarter of 2011.
Impaired Loans
Loans are classified as impaired when based on current information, it is probable that the Company will not be able to collect all principal and interest payments due in accordance with the terms of the loan. Non-covered impaired loans at June 30, 2011 totaled $91.2 million, compared with $154.9 million at March 31, 2011.
Total impaired loans by loan category are shown in the table below:
IMPAIRED LOANS (Dollars In Thousands)
(Net of SBA Guaranteed Portions) | | Quarter Ended | |
Non-Covered Loans | | Jun 30, 2011 | | Mar 31, 2011 | | Dec 31, 2010 | | Sep 30, 2010 | | Jun 30, 2010 |
| | | | | | | | | | | | | | | |
Construction | | $ | 12,000 | | | $ | - | | | $ | - | | | $ | 2,660 | | | $ | - | |
Real Estate Secured | | 74,845 | | | 149,402 | | | 93,452 | | | 157,068 | | | 128,538 | |
Commercial & Industrial | | 4,216 | | | 5,456 | | | 5,649 | | | 8,505 | | | 3,870 | |
Consumer | | 136 | | | - | | | 27 | | | 37 | | | - | |
Total Non-Covered Impaired Loans | | $ | 91,197 | | | $ | 154,858 | | | $ | 99,128 | | | $ | 168,270 | | | $ | 132,408 | |
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Covered Loans | | | | | | | | | | | | | | | |
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Real Estate Secured | | $ | 19,236 | | | $ | 18,256 | | | $ | 15,120 | | | $ | 18,837 | | | $ | 20,036 | |
Commercial & Industrial | | 2,922 | | | 3,332 | | | 4,216 | | | 5,479 | | | 1,801 | |
Total Covered Impaired Loans | | $ | 22,158 | | | $ | 21,588 | | | $ | 19,336 | | | $ | 24,316 | | | $ | 21,837 | |
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Total Impaired Loans | | | | | | | | | | | | | | | |
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Construction | | $ | 12,000 | | | $ | - | | | $ | - | | | | $2,660 | | | $ | - | |
Real Estate Secured | | 94,081 | | | 167,658 | | | 108,572 | | | 175,905 | | | 148,574 | |
Commercial & Industrial | | 7,138 | | | 8,788 | | | 9,865 | | | 13,984 | | | 5,671 | |
Consumer | | 136 | | | - | | | 27 | | | 37 | | | - | |
Total Impaired Loans | | $ | 113,355 | | | $ | 176,446 | | | $ | 118,464 | | | $ | 192,586 | | | $ | 154,245 | |
The decrease in impaired loans during the second quarter of 2011 is largely attributable to note sales and charge-offs of impaired loans and was experienced entirely in the non-covered portfolio.
Performing Troubled Debt Restructured Loans
At June 30, 2011, total non-covered troubled debt restructured loans or “TDR loans”, declined to $22.3 million from $35.7 million at March 31, 2011. All of the Company’s TDR loans were performing based on their modified terms and were not considered non-performing. The decline in TDR loans was a result of the note sales during the second quarter of 2011 in addition to a reduction in the number of modification requests during the quarter.
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Wilshire Bancorp Inc. – 2Q 2011 Results
July 25, 2011
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Total TDR loans by loan category are shown in the table below:
PERFORMING TROUBLED DEBT RESTRUCTURED LOANS (Dollars In Thousands)(unaudited)
(net of SBA guaranteed portions)
| | | | | | | | | | | | | | | | | | | | |
| | Quarter Ended | |
Non-Covered Loans | | Jun 30, 2011 | | Mar 31, 2011 | | Dec 31, 2010 | | Sep 30, 2010 | | Jun 30, 2010 |
| | | | | | | | | | | | | | | |
Construction | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
Real Estate Secured | | 18,733 | | | 31,540 | | | 36,187 | | | 100,289 | | | 49,289 | |
Commercial & Industrial | | 3,529 | | | 4,117 | | | 3,574 | | | 4,929 | | | 802 | |
Consumer | | - | | | - | | | - | | | - | | | - | |
Total Non-Covered TDR Loans | | $ | 22,262 | | | $ | 35,657 | | | $ | 39,761 | | | $ | 105,218 | | | $ | 50,091 | |
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Covered Loans | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Real Estate Secured | | $ | 8,518 | | | $ | 7,676 | | | $ | 7,115 | | | $ | 8,268 | | | $ | 2,804 | |
Commercial & Industrial | | 1,473 | | | 1,844 | | | 1,870 | | | 2,448 | | | 202 | |
Total Covered TDR Loans | | $ | 9,991 | | | $ | 9,520 | | | $ | 8,985 | | | $ | 10,716 | | | $ | 3,006 | |
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Total Performing TDRs Loans | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Construction | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
Real Estate Secured | | 27,251 | | | 39,216 | | | 43,302 | | | 108,556 | | | 52,093 | |
Commercial & Industrial | | 5,002 | | | 5,961 | | | 5,444 | | | 7,378 | | | 1,004 | |
Consumer | | - | | | - | | | - | | | - | | | - | |
Total Performing TDR Loans | | $ | 32,253 | | | $ | 45,177 | | | $ | 48,746 | | | $ | 115,934 | | | $ | 53,097 | |
Loan Delinquencies
At June 30, 2011, total non-covered loan delinquencies declined to $28.4 million from $35.1 million at March 31, 2011. As a percentage of gross non-covered loans, delinquencies decreased to 1.50% at June 30, 2011, from 1.68% at March 31, 2011. The decline in delinquencies was primarily attributable to charge-offs and a decline in inflow to delinquency.
Delinquent loans by days past due and loan type are reflected in the table below:
DELINQUENT LOANS - By Days Past Due (Dollars In Thousands)
| | | | | | | | | | | | | | | | | | | | |
(Net of SBA Guaranteed Portions) | | Quarter Ended | |
Non-Covered Loans | | Jun 30, 2011 | | Mar 31, 2011 | | Dec 31, 2010 | | Sep 30, 2010 | | Jun 30, 2010 |
| | | | | | | | | | | | | | | |
30 - 59 Days Past Due | | $ | 11,782 | | | $ | 8,680 | | | $ | 15,641 | | | $ | 13,582 | | | $ | 17,146 | |
60 - 89 Days Past Due | | 16,594 | | | 26,389 | | | 11,007 | | | 18,126 | | | 14,844 | |
90 Days, and still accruing | | - | | | - | | | - | | | 304 | | | 1 | |
Total Non-Covered Delinquent Loans | | $ | 28,376 | | | $ | 35,069 | | | $ | 26,648 | | | $ | 32,012 | | | $ | 31,991 | |
| | | | | | | | | | | | | | | |
Covered Loans | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
30 - 59 Days Past Due | | $ | 3,303 | | | $ | 5,166 | | | $ | 4,254 | | | $ | 1,754 | | | $ | 4,108 | |
60 - 89 Days Past Due | | 1,227 | | | 968 | | | 3,566 | | | 1,053 | | | 910 | |
90 Days, and still accruing | | - | | | - | | | - | | | - | | | - | |
Total Covered Delinquent Loans | | $ | 4,530 | | | $ | 6,134 | | | $ | 7,820 | | | $ | 2,807 | | | $ | 5,018 | |
| | | | | | | | | | | | | | | |
Total Delinquent Loans | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
30 - 59 Days Past Due | | $ | 15,085 | | | $ | 13,846 | | | $ | 19,895 | | | $ | 15,336 | | | $ | 21,254 | |
60 - 89 Days Past Due | | 17,821 | | | 27,357 | | | 14,573 | | | 19,179 | | | 15,754 | |
90 Days, and still accruing | | - | | | - | | | - | | | 304 | | | 1 | |
Total Delinquent Loans | | $ | 32,906 | | | $ | 41,203 | | | $ | 34,468 | | | $ | 34,819 | | | $ | 37,009 | |
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Wilshire Bancorp Inc. – 2Q 2011 Results
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Loan Classifications
At June 30, 2011, total non-covered classified loans (loan graded substandard, doubtful, and loss) declined 27.4% to $158.0 million from $217.7 million at March 31, 2011. Non-covered criticized loans (loans graded special mention) also experienced a large decline to $156.2 million at June 30, 2011 from $180.7 million at March 31, 2011, a reduction of 13.5%.
Loan balances broken down by classification are reflected in the table below:
LOAN CLASSIFICATIONS (Dollars In Thousands)
| | | | | | | | | | | | | | | | | | | | |
| | Quarter Ended | |
Non-Covered Loans | | Jun 30, 2011 | | Mar 31, 2011 | | Dec 31, 2010 | | Sep 30, 2010 | | Jun 30, 2010 |
| | | | | | | | | | | | | | | |
Special Mention | | $ | 156,249 | | | $ | 180,656 | | | $ | 102,990 | | | $ | 101,997 | | | $ | 87,197 | |
Substandard | | 140,645 | | | 207,422 | | | 216,283 | | | 277,582 | | | 294,544 | |
Doubtful | | 17,367 | | | 10,231 | | | 11,306 | | | 964 | | | 2,400 | |
Loss | | - | | | - | | | - | | | - | | | - | |
Total Non-Covered Gross Loans | | $ | 314,261 | | | $ | 398,309 | | | $ | 330,579 | | | $ | 380,543 | | | $ | 384,141 | |
| | | | | | | | | | | | | | | |
Covered Loans | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Special Mention | | $ | 12,639 | | | $ | 20,554 | | | $ | 15,618 | | | $ | 15,644 | | | $ | 26,198 | |
Substandard | | 35,006 | | | 31,755 | | | 30,836 | | | 34,150 | | | 39,700 | |
Doubtful | | 5,806 | | | 2,112 | | | 2,921 | | | 3,245 | | | 2,589 | |
Loss | | - | | | - | | | - | | | - | | | - | |
Total Covered Gross Loans | | $ | 53,451 | | | $ | 54,421 | | | $ | 49,375 | | | $ | 53,039 | | | $ | 68,487 | |
| | | | | | | | | | | | | | | |
Total Loans | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Special Mention | | $ | 168,888 | | | $ | 201,210 | | | $ | 118,608 | | | $ | 117,641 | | | $ | 113,395 | |
Substandard | | 175,651 | | | 239,177 | | | 247,119 | | | 311,732 | | | 334,244 | |
Doubtful | | 23,173 | | | 12,343 | | | 14,227 | | | 4,209 | | | 4,989 | |
Loss | | - | | | - | | | - | | | - | | | - | |
Total Gross Loans | | $ | 367,712 | | | $ | 452,730 | | | $ | 379,954 | | | $ | 433,582 | | | $ | 452,628 | |
Loan Charge-offs
Non-covered loan charge-offs for the second quarter of 2011 totaled $14.2 million, compared to $41.0 million in the first quarter of 2011. Approximately 64.3% of the charge-offs for the second quarter of 2011, were attributable to the transfer of loans to held-for-sale status. The decline in charge-offs for the second quarter of 2011 reflects an overall improvement in credit quality in the loan portfolio.
8
Wilshire Bancorp Inc. – 2Q 2011 Results
July 25, 2011
Page 9
Charge-offs by loan type is reflected in the table below:
| | | | | | | | | | | |
LOAN CHARGE-OFFS (Dollars In Thousands) | | Quarter Ended | |
Non-Covered Loans | | Jun 30, 2011 | | Mar 31, 2011 | | Dec 31, 2010 | | Sep 30, 2010 | | Jun 30, 2010 | |
Construction | | $ | 3,000 | | $ | 805 | | $ | 401 | | $ | - | | $ | - | |
Real Estate Secured | | 9,012 | | 39,062 | | 60,317 | | 12,445 | | 12,268 | |
Commercial & Industrial | | 2,185 | | 1,151 | | 10,487 | | 1,448 | | 3,841 | |
Consumer | | 9 | | 19 | | 14 | | 33 | | 80 | |
Total Non-Covered Charge-Offs Loans | | $ | 14,206 | | $ | 41,037 | | $ | 71,219 | | $ | 13,926 | | $ | 16,189 | |
| | | | | | | | | | | |
Covered Loans | | | | | | | | | | | |
Real Estate Secured | | 16 | | 171 | | 252 | | 324 | | 596 | �� |
Commercial & Industrial | | (48) | | 489 | | 431 | | 91 | | 373 | |
Consumer | | - | | - | | - | | - | | - | |
Total Covered Charge-Offs Loans | | $ | (32) | | $ | 660 | | $ | 683 | | $ | 415 | | $ | 969 | |
| | | | | | | | | | | |
Total Charge-Offs Loans | | | | | | | | | | | |
Construction | | $ | 3,000 | | $ | 805 | | $ | 401 | | $ | - | | $ | - | |
Real Estate Secured | | 9,028 | | 39,233 | | 60,569 | | 12,769 | | 12,864 | |
Commercial & Industrial | | 2,137 | | 1,640 | | 10,918 | | 1,539 | | 4,214 | |
Consumer | | 9 | | 19 | | 14 | | 33 | | 80 | |
Total Charge-Offs Loans | | $ | 14,174 | | $ | 41,697 | | $ | 71,902 | | $ | 14,341 | | $ | 17,158 | |
Capital Ratios
The Company’s capital ratios significantly increased in the second quarter of 2011 due to the $109 million common stock offering. As of June 30, 2011, the Company’s Tier 1 Leverage ratio was 12.85%. The minimum required Tier 1 capital ratio for the Bank stated in the MOU is 10%, in which the Bank is in compliance.
In addition, all of the Company’s capital ratios remain in excess of “well capitalized” regulatory requirements as shown in the following table:
(Dollars In thousands, except per share info) | | June 30, 2011 | | Well Capitalized
Regulatory
Requirements | | Total Excess Above
Well Capitalized
Requirements | |
| | | | | | | |
Tier 1 Leverage Capital Ratio | | 12.85% | | 5.00% | | $ 215,268 | |
Tier 1 Risk-Based Capital Ratio | | 17.70% | | 6.00% | | 232,915 | |
Total Risk-Based Capital Ratio | | 19.10% | | 10.00% | | 181,266 | |
Tangible Common Equity To Tangible Assets | | 8.28% | | N/A | | N/A | |
Tangible Common Equity Per Common Share | | $ 3.10 | | N/A | | N/A | |
9
Wilshire Bancorp Inc. – 2Q 2011 Results
July 25, 2011
Page 10
CONFERENCE CALL
Management will host its quarterly conference call on July 26, 2011, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing 800-599-9829 (domestic number) or 617-847-8703 (international number) and entering passcode 83621142.
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. Visit us at 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, the preliminary nature of the financial results reported herein, the preliminary assessment of the goodwill impairment, 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.
10
Wilshire Bancorp Inc. – 2Q 2011 Results
July 25, 2011
Page 11
PRELIMINARY CONSOLIDATED BALANCE SHEET | | | | | | | |
(dollars in thousands) (unaudited) | | June 30, | | March 31, | | | | June 30, | | | |
| | 2011 | | 2011 | | % Change | | 2010 | | % Change | |
ASSETS: | | | | | | | | | | | |
Cash and Due from Banks | | $ | 97,499 | | $ | 68,827 | | 42% | | $ | 134,707 | | -28% | |
Federal Funds Sold and Other Cash Equivalents | | 115,005 | | 5 | | 2300000% | | 224,005 | | -49% | |
Total Cash and Cash Equivalents | | 212,504 | | 68,832 | | 209% | | 358,712 | | -41% | |
| | | | | | | | | | | |
Investment Securities Available For Sale | | 307,309 | | 340,812 | | -10% | | 506,381 | | -39% | |
Investment Securities Held To Maturity | | 74 | | 80 | | -8% | | 96 | | -23% | |
Total Investment Securities | | 307,383 | | 340,892 | | -10% | | 506,477 | | -39% | |
Loans: | | | | | | | | | | | |
| | | | | | | | | | | |
Loans Held For Sale | | 66,429 | | 136,769 | | -51% | | 16,965 | | 292% | |
| | | | | | | | | | | |
Real Estate Construction | | 57,637 | | 73,879 | | -22% | | 57,379 | | 0% | |
Residential Real Estate | | 90,715 | | 91,842 | | -1% | | 106,057 | | -14% | |
Commercial Real Estate | | 1,558,067 | | 1,656,495 | | -6% | | 1,885,897 | | -17% | |
Commercial and Industrial | | 294,438 | | 310,225 | | -5% | | 370,323 | | -20% | |
Consumer | | 15,430 | | 14,675 | | 5% | | 18,401 | | -16% | |
Total Loans | | 2,016,287 | | 2,147,116 | | -6% | | 2,438,057 | | -17% | |
Allowance For Loan Losses | | (110,995) | | (114,842) | | -3% | | (91,419) | | 21% | |
Loans, Net of Allowance for Loan Losses | | 1,905,292 | | 2,032,274 | | -6% | | 2,346,638 | | -19% | |
| | | | | | | | | | | |
Accrued Interest Receivable | | 8,082 | | 9,829 | | -18% | | 13,427 | | -40% | |
Due from Customers on Acceptances | | 509 | | 169 | | 201% | | 611 | | -17% | |
Other Real Estate Owned | | 8,499 | | 8,512 | | 0% | | 6,540 | | 30% | |
Premises and Equipment | | 13,243 | | 13,555 | | -2% | | 13,741 | | -4% | |
Federal Home Loan Bank (FHLB) Stock, at Cost | | 17,033 | | 17,796 | | -4% | | 20,075 | | -15% | |
Cash Surrender Value of Life Insurance | | 19,582 | | 18,812 | | 4% | | 18,354 | | 7% | |
Investment in affordable housing partnerships | | 33,697 | | 34,781 | | -3% | | 29,665 | | 14% | |
Deferred Income Taxes | | 19,112 | | 19,112 | | 0% | | 28,199 | | -32% | |
Servicing Assets | | 8,561 | | 7,664 | | 12% | | 6,655 | | 29% | |
Goodwill (1) | | - | | 6,675 | | -100% | | 6,675 | | -100% | |
FDIC Indemnification | | 21,912 | | 26,673 | | -18% | | 28,538 | | -23% | |
Other Assets | | 32,739 | | 46,756 | | -30% | | 35,822 | | -9% | |
TOTAL ASSETS | | $ | 2,674,577 | | $ | 2,789,101 | | -4% | | $ | 3,437,094 | | -22% | |
| | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY: | | | | | | | | | | | |
| | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | |
Non-interest Bearing Demand Deposits | | $ | 449,270 | | $ | 484,402 | | -7% | | $ | 427,793 | | 5% | |
Savings and Interest Checking | | 110,097 | | 109,399 | | 1% | | 100,210 | | 10% | |
Money Market Deposits | | 587,442 | | 622,078 | | -6% | | 908,112 | | -35% | |
Time Deposits in denomination of $100,000 or more | | 646,238 | | 670,686 | | -4% | | 752,656 | | -14% | |
Other Time Deposits | | 360,825 | | 383,462 | | -6% | | 712,698 | | -49% | |
Total Deposits | | 2,153,872 | | 2,270,027 | | -5% | | 2,901,469 | | -26% | |
| | | | | | | | | | | |
FHLB borrowings and Federal Funds Purchased | | 110,000 | | 215,000 | | -49% | | 145,306 | | -24% | |
Acceptance Outstanding | | 509 | | 169 | | 201% | | 611 | | -17% | |
Junior Subordinated Debentures | | 87,321 | | 87,321 | | 0% | | 87,321 | | 0% | |
Accrued Interest Payable | | 3,651 | | 4,049 | | -10% | | 5,461 | | -33% | |
Other Liabilities | | 35,730 | | 34,783 | | 3% | | 29,491 | | 21% | |
Total Liabilities | | 2,391,083 | | 2,611,349 | | -8% | | 3,169,659 | | -25% | |
| | | | | | | | | | | |
STOCKHOLDERS’ EQUITY: | | | | | | | | | | | |
Preferred Stock | | 60,721 | | 60,584 | | 0% | | 60,186 | | 1% | |
Common Stock | | 164,585 | | 55,655 | | 196% | | 55,370 | | 197% | |
Retained Earnings | | 54,431 | | 58,994 | | -8% | | 147,325 | | -63% | |
Accumulated Other Comprehensive Income | | 3,757 | | 2,519 | | 49% | | 4,554 | | -18% | |
Total Stockholders’ Equity | | 283,494 | | 177,752 | | 59% | | 267,435 | | 6% | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 2,674,577 | | $ | 2,789,101 | | -4% | | $ | 3,437,094 | | -22% | |
(1) Preliminary in nature, as discussed in body of release
(continued)
11
Wilshire Bancorp Inc. – 2Q 2011 Results
July 25, 2011
Page 2
PRELIMINARY CONSOLIDATED STATEMENT OF OPERATIONS
(dollars in thousands, except per share data) (unaudited)
| | Quarter Ended | | | | Quarter Ended | | | |
| | June 30, 2011 | | March 31, 2011 | | % Change | | June 30, 2010 | | % Change |
INTEREST INCOME | | | | | | | | | | | |
Interest and Fees on Loans | | $ | 30,767 | | $ | 33,462 | | -8 | % | | $ | 36,079 | | -15 | % |
Interest on Investment Securities | | 2,156 | | 1,983 | | 9 | % | | 4,756 | | -55 | % |
Interest on Federal Funds Sold | | 74 | | 179 | | -59 | % | | 294 | | -75 | % |
Total Interest Income | | 32,997 | | 35,624 | | -7 | % | | 41,129 | | -20 | % |
| | | | | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | | | |
Deposits | | 4,663 | | 5,110 | | -9 | % | | 10,476 | | -55 | % |
FHLB Advances and Other Borrowings | | 999 | | 1,219 | | -18 | % | | 1,414 | | -29 | % |
Total Interest Expense | | 5,662 | | 6,329 | | -11 | % | | 11,890 | | -52 | % |
| | | | | | | | | | | | |
Net Interest Income Before Provision for Losses on Loans and Loan Commitments | | 27,335 | | 29,295 | | -7 | % | | 29,239 | | -7 | % |
Provision for Losses on Loans and Loan Commitments | | 10,300 | | 44,800 | | -77 | % | | 32,200 | | -68 | % |
Net Interest Income (Loss) After Provision for Losses on Loans and Loan Commitments | | 17,035 | | (15,505) | | -210 | % | | (2,961) | | -675 | % |
| | | | | | | | | | | | |
NONINTEREST INCOME | | | | | | | | | | | | |
Service Charges on Deposits | | 3,149 | | 3,080 | | 2 | % | | 3,215 | | -2 | % |
(Loss) Gain on Sales of Loans, Net | | (1,282) | | 3,592 | | -136 | % | | 1,444 | | -189 | % |
Gain on Sale of Investment Securities | | 6 | | 36 | | -83 | % | | 3,658 | | -100 | % |
Other | | 2,179 | | 1,968 | | 11 | % | | 1,561 | | 40 | % |
Total Noninterest Income | | 4,052 | | 8,676 | | -53 | % | | 9,878 | | -59 | % |
| | | | | | | | | | | | |
NONINTEREST EXPENSES | | | | | | | | | | | | |
Salaries and Employee Benefits | | 6,753 | | 7,817 | | -14 | % | | 7,284 | | -7 | % |
Goodwill Impairment (1) | | 6,675 | | - | | 0 | % | | - | | 0 | % |
Occupancy & Equipment | | 2,053 | | 1,980 | | 4 | % | | 1,946 | | 5 | % |
Data Processing | | 773 | | 712 | | 9 | % | | 690 | | 12 | % |
Other | | 9,359 | | 6,967 | | 34 | % | | 6,212 | | 51 | % |
Total Noninterest Expenses | | 25,613 | | 17,476 | | 47 | % | | 16,132 | | 59 | % |
| | | | | | | | | | | | |
Loss Before Income Taxes | | (4,526) | | (24,305) | | -81 | % | | (9,215) | | -51 | % |
Income Taxes (Benefit) Provision | | (877) | | 26,888 | | -103 | % | | (5,551) | | -84 | % |
NET LOSS | | $ | (3,649) | | $ | (51,193) | | -93 | % | | $ | (3,664) | | 0 | % |
| | | | | | | | | | | | |
Preferred Stock Cash Dividend and Accretion of | | | | | | | | | | | | |
Preferred Stock Discount | | 913 | | 912 | | 0 | % | | 906 | | 1 | % |
NET LOSS AVAILABLE TO COMMON SHAREHOLDERS | | $ | (4,562) | | $ | (52,105) | | -91 | % | | $ | (4,570) | | 0 | % |
| | | | | | | | | | | | |
PER COMMON SHARE INFORMATION | | | | | | | | | | | | |
Basic Loss Per Common Share | | $ | (0.09) | | $ | (1.77) | | -95 | % | | $ | (0.15) | | -41 | % |
Diluted Loss Per Common Share | | $ | (0.09) | | $ | (1.77) | | -95 | % | | $ | (0.15) | | -41 | % |
| | | | | | | | | | | | |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | | | | | | |
Basic | | 50,151,459 | | 29,476,288 | | | | | 29,487,994 | | | |
Diluted | | 50,151,459 | | 29,476,288 | | | | | 29,487,994 | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
(1) Preliminary in nature, as discussed in body of release | | | | | | | | | | |
(continued)
12
Wilshire Bancorp Inc. – 2Q 2011 Results
July 25, 2011
Page 13
PRELIMINARY CONSOLIDATED STATEMENT OF OPERATIONS |
(dollars in thousands, except per share data) (unaudited) |
| | | Six Months Ended | | | |
| | | June 30, 2011 | | June 30, 2010 | | % Change | |
| | | | | | | | | | | |
INTEREST INCOME | | | | | | | | | | | |
Interest and Fees on Loans | | | $ | 64,229 | | | $ | 71,383 | | | -10 | % | |
Interest on Investment Securities | | | | 4,139 | | | | 10,371 | | | -60 | % | |
Interest on Federal Funds Sold | | | | 253 | | | | 676 | | | -63 | % | |
Total Interest Income | | | | 68,621 | | | | 82,430 | | | -17 | % | |
| | | | | | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | | | | |
Deposits | | | | 9,773 | | | | 21,650 | | | -55 | % | |
FHLB Advances and Other Borrowings | | | | 2,217 | | | | 2,983 | | | -26 | % | |
Total Interest Expense | | | | 11,990 | | | | 24,633 | | | -51 | % | |
| | | | | | | | | | | | | |
Net Interest Income Before Provision for Losses on Loans and Loan Commitments | | | | 56,631 | | | | 57,797 | | | -2 | % | |
Provision for Losses on Loans and Loan Commitments | | | | 55,100 | | | | 49,200 | | | 12 | % | |
Net Interest Income After Provision for Losses on Loans and Loan Commitments | | | | 1,531 | | | | 8,597 | | | -82 | % | |
| | | | | | | | | | | | | |
NONINTEREST INCOME | | | | | | | | | | | | | |
Service Charges on Deposits | | | | 6,229 | | | | 6,439 | | | -3 | % | |
Gain on Sales of Loans | | | | 2,310 | | | | 1,480 | | | 56 | % | |
Gain on Sale of Investment Securities | | | | 42 | | | | 6,142 | | | -99 | % | |
Other | | | | 4,134 | | | | 3,602 | | | 15 | % | |
Total Noninterest Income | | | | 12,715 | | | | 17,663 | | | -28 | % | |
| | | | | | | | | | | | | |
NONINTEREST EXPENSES | | | | | | | | | | | | | |
Salaries and Employee Benefits | | | | 14,569 | | | | 14,399 | | | 1 | % | |
Goodwill Impairment (1) | | | | 6,675 | | | | - | | | 0 | % | |
Occupancy & Equipment | | | | 4,033 | | | | 4,127 | | | -2 | % | |
Data Processing | | | | 1,485 | | | | 1,327 | | | 12 | % | |
Other | | | | 16,316 | | | | 10,969 | | | 49 | % | |
Total Noninterest Expenses | | | | 43,078 | | | | 30,822 | | | 40 | % | |
| | | | | | | | | | | | | |
Loss Before Income Taxes | | | | (28,832 | ) | | | (4,562 | ) | | 532 | % | |
Income Taxes Provision (Benefit) | | | | 26,010 | | | | (4,213 | ) | | -717 | % | |
NET (LOSS) INCOME | | | $ | (54,842 | ) | | $ | (349 | ) | | 15614 | % | |
| | | | | | | | | | | | | |
Preferred Stock Cash Dividend and Accretion of | | | | | | | | | | | | | |
Preferred Stock Discount | | | | 1,826 | | | | 1,809 | | | 1 | % | |
NET LOSS AVAILABLE TO COMMON SHAREHOLDERS | | | $ | (56,668 | ) | | $ | (2,158 | ) | | 2526 | % | |
| | | | | | | | | | | | | |
PER COMMON SHARE INFORMATION | | | | | | | | | | | | | |
Basic Loss Per Common Share | | | $ | (1.42 | ) | | $ | (0.07 | ) | | 1842 | % | |
Diluted Loss Per Common Share | | | $ | (1.42 | ) | | $ | (0.07 | ) | | 1842 | % | |
| | | | | | | | | | | | | |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | | | | | | | |
Basic | | | | 39,870,987 | | | | 29,486,011 | | | | | |
Diluted | | | | 39,870,987 | | | | 29,486,011 | | | | | |
(1) Preliminary in nature, as discussed in body of release
(continued)
13
Wilshire Bancorp Inc. – 2Q 2011 Results
July 25, 2011
Page 14
SUMMARY OF PRELIMINARY FINANCIAL | | | | | | | | | | | | |
(dollars in thousands, except per share data) (unaudited) | | | | | | | | | | |
| | Quarter Ended | | |
AVERAGE BALANCES | | June 30, 2011 | | | | March 31, 2011 | | | | June 30, 2010 | | |
| | | | | | | | | | | | |
Average Assets | | $ 2,750,821 | | | | $ 2,921,915 | | | | $ 3,475,151 | | |
Average Equity | | 218,478 | | | | 231,622 | | | | 275,452 | | |
Average Net Loans | | 2,072,244 | | | | 2,218,079 | | | | 2,367,860 | | |
Average Deposits | | 2,198,081 | | | | 2,314,733 | | | | 2,939,513 | | |
Average Time Deposits in denomination of $100,000 or more | | 654,647 | | | | 670,542 | | | | 751,094 | | |
Average Interest Earning Assets | | 2,496,763 | | | | 2,610,600 | | | | 3,174,226 | | |
| | | | | | | | | | | | |
| | Six Months Ended | | |
AVERAGE BALANCES | | June 30, 2011 | | | | | | | | June 30, 2010 | | |
| | | | | | | | | | | | |
Average Assets | | $ 2,835,895 | | | | | | | | $ 3,446,551 | | |
Average Equity | | 225,014 | | | | | | | | 274,378 | | |
Average Net Loans | | 2,144,759 | | | | | | | | 2,363,714 | | |
Average Deposits | | 2,256,084 | | | | | | | | 2,913,160 | | |
Average Time Deposits in denomination of $100,000 or more | | 665,088 | | | | | | | | 759,933 | | |
Average Interest Earning Assets | | 2,558,838 | | | | | | | | 3,165,091 | | |
| | | | | | | | | | | | |
| | Quarter Ended | | |
PROFITABILITY | | June 30, 2011 | | | | March 31, 2011 | | | | June 30, 2010 | | |
| | | | | | | | | | | | |
Annualized Return on Average Assets | | -0.53% | | | | -7.01% | | | | -0.42% | | |
Annualized Return on Average Equity | | -6.68% | | | | -88.41% | | | | -5.32% | | |
Efficiency Ratio | | 81.60% | | | | 46.02% | | | | 41.24% | | |
Annualized Operating Expense/Average Assets | | 3.72% | | | | 2.39% | | | | 1.86% | | |
Annualized Net Interest Margin | | 4.42% | | | | 4.53% | | | | 3.72% | | |
| | | | | | | | | | | | |
| | Six Months Ended | | |
PROFITABILITY | | June 30, 2011 | | | | | | | | June 30, 2010 | | |
| | | | | | | | | | | | |
Annualized Return on Average Assets | | -3.87% | | | | | | | | -0.02% | | |
Annualized Return on Average Equity | | -48.75% | | | | | | | | -0.25% | | |
Efficiency Ratio | | 62.12% | | | | | | | | 40.85% | | |
Annualized Operating Expense/Average Assets | | 3.04% | | | | | | | | 1.79% | | |
Annualized Net Interest Margin | | 4.46% | | | | | | | | 3.67% | | |
| | | | | | | | | | | | |
| | As Of |
DEPOSIT COMPOSITION | | June 30, 2011 | | Cost of Funds | | March 31, 2011 | | Cost of Funds | | June 30, 2010 | | Cost of Funds |
| | | | | | | | | | | | |
Noninterest Bearing Demand Deposits | | 20.9% | | 0.00% | | 21.3% | | 0.00% | | 14.7% | | 0.00% |
Savings & Interest Checking | | 5.1% | | 2.31% | | 4.8% | | 2.26% | | 3.5% | | 2.57% |
Money Market Deposits | | 27.3% | | 0.93% | | 27.4% | | 0.87% | | 31.3% | | 1.56% |
Time Deposits of $100,000 or More | | 30.0% | | 0.97% | | 29.6% | | 1.00% | | 25.9% | | 1.55% |
Other Time Deposits | | 16.7% | | 1.11% | | 16.9% | | 1.31% | | 24.6% | | 2.00% |
Total Deposits | | 100.0% | | 0.85% | | 100.0% | | 0.88% | | 100.0% | | 1.43% |
| | | | | | | | | | | | |
| | As Of |
CAPITAL RATIOS | | June 30, 2011 | | | | March 31, 2011 | | | | June 30, 2010 | | |
| | | | | | | | | | | | |
Tier 1 Leverage Ratio | | 12.85% | | | | 7.64% | | | | 9.51% | | |
Tier 1 Risk-Based Capital Ratio | | 17.70% | | | | 10.30% | | | | 13.72% | | |
Total Risk-Based Capital Ratio | | 19.10% | | | | 12.57% | | | | 15.17% | | |
Total Shareholders' Equity | | $ 283,494 | | | | $ 177,752 | | | | $ 267,435 | | |
Book Value Per Common Share | | $ 3.12 | | | | $ 3.98 | | | | $ 7.03 | | |
Tangible Common Equity Per Common Share * | | $ 3.10 | | | | $ 3.70 | | | | $ 6.74 | | |
Tangible Common Equity to Tangible Assets ** | | 8.28% | | | | 3.92% | | | | 5.80% | | |
| | | | | | | | | | | | | | | | |
* Tangible common equity excludes goodwill, other intangible assets, and TARP preferred stock
** Tangible assets excludes goodwill and intangible assets
(continued)
14
Wilshire Bancorp Inc. – 2Q 2011 Results
July 25, 2011
Page 15
ALLOWANCE FOR LOAN LOSSES | |
(dollars in thousands) (unaudited) | | Quarter Ended | |
| | June 30, 2011 | | | March 31, 2011 | | | December 31, 2010 | | | September 30, 2010 | | | June 30, 2010 | | |
| | | | | | | | | | | | | | | | |
Balance at Beginning of Period | | $ | 114,842 | | | $ | 110,953 | | | $ | 99,020 | | | $ | 91,419 | | | $ | 79,576 | | |
Provision for Losses on Loans | | 10,123 | | | 44,800 | | | 82,600 | | | 17,999 | | | 31,269 | | |
FDIC Indemnification | | - | | | - | | | - | | | 2,953 | | | (3,140 | ) | |
Recoveries on loans previously charged-off | | 204 | | | 786 | | | 1,235 | | | 990 | | | 872 | | |
Less Charge-offs | | (14,174 | ) | | (41,697 | ) | | (71,902 | ) | | (14,341 | ) | | (17,158 | ) | |
Balance at End of Period | | $ | 110,995 | | | $ | 114,842 | | | $ | 110,953 | | | $ | 99,020 | | | $ | 91,419 | | |
| | | | | | | | | | | | | | | | |
Net Loan Charge-offs/Average Total Loans | | 0.67% | | | 1.84% | | | 3.03% | | | 0.56% | | | 0.67% | | |
Charge-offs/Average Total Loans | | 0.68% | | | 1.88% | | | 3.08% | | | 0.60% | | | 0.70% | | |
Allowance for Loan Losses/Gross Loans | | 5.32% | | | 5.02% | | | 4.76% | | | 4.04% | | | 3.72% | | |
Allowance for Loan Losses/Legacy Wilshire Loans | | 5.86% | | | 5.50% | | | 5.23% | | | 4.44% | | | 4.11% | | |
Allowance for Loan Losses/Non-accrual Loans | | 142.41% | | | 143.31% | | | 155.76% | | | 129.70% | | | 109.99% | | |
Allowance for Loan Losses/Legacy Non-accrual Loans | | 186.86% | | | 185.02% | | | 182.24% | | | 157.80% | | | 142.21% | | |
Allowance for Loan Losses/Non-performing Loans | | 142.41% | | | 143.31% | | | 155.76% | | | 129.18% | | | 109.99% | | |
Allowance for Loan Losses/Legacy Non-performing Loans | | 186.86% | | | 185.02% | | | 182.24% | | | 157.04% | | | 142.21% | | |
Allowance for Loan Losses/Non-performing Assets | | 128.41% | | | 129.55% | | | 128.69% | | | 106.88% | | | 101.97% | | |
Allowance for Loan Losses/Legacy Non-performing Assets | | 167.16% | | | 164.68% | | | 151.35% | | | 136.44% | | | 133.20% | | |
NON-PERFORMING ASSETS | | | |
(net of SBA guaranteed portions) | | Quarter Ended | |
| | June 30, 2011 | | | March 31, 2011 | | | December 31, 2010 | | | September 30, 2010 | | | June 30, 2010 | | |
Nonaccrual Loans: | | | | | | | | | | | | | | | | |
Non-covered Loans | | $ | 59,399 | | | $ | 62,069 | | | $ | 60,882 | | | $ | 62,749 | | | $ | 64,285 | | |
Covered Loans | | 18,543 | | | 18,064 | | | 10,350 | | | 13,599 | | | 18,831 | | |
Total | | 77,942 | | | 80,133 | | | 71,232 | | | 76,348 | | | 83,116 | | |
| | | | | | | | | | | | | | | | |
Loans 90 days or more past due and still accruing: | | | | | | | | | | | | | | | | |
Non-covered Loans | | - | | | - | | | - | | | 304 | | | 1 | | |
Covered Loans | | - | | | - | | | - | | | - | | | - | | |
Total | | - | | | - | | | - | | | 304 | | | 1 | | |
| | | | | | | | | | | | | | | | |
Total Nonperforming Loans: | | | | | | | | | | | | | | | | |
Non-covered Loans | | 59,399 | | | 62,069 | | | 60,882 | | | 63,053 | | | 64,286 | | |
Covered Loans | | 18,543 | | | 18,064 | | | 10,350 | | | 13,599 | | | 18,831 | | |
Total | | 77,942 | | | 80,133 | | | 71,232 | | | 76,652 | | | 83,117 | | |
| | | | | | | | | | | | | | | | |
OREO and Repossessed Vehicles: | | | | | | | | | | | | | | | | |
Non-covered Loans | | 7,001 | | | 7,668 | | | 12,429 | | | 9,519 | | | 4,346 | | |
Covered Loans | | 1,498 | | | 844 | | | 2,554 | | | 6,477 | | | 2,194 | | |
Total | | 8,499 | | | 8,512 | | | 14,983 | | | 15,996 | | | 6,540 | | |
| | | | | | | | | | | | | | | | |
Total Nonperforming Assets: | | | | | | | | | | | | | | | | |
Non-covered Loans | | 66,400 | | | 69,737 | | | 73,311 | | | 72,572 | | | 68,632 | | |
Covered Loans | | 20,041 | | | 18,908 | | | 12,904 | | | 20,076 | | | 21,025 | | |
Total | | $ | 86,441 | | | $ | 88,645 | | | $ | 86,215 | | | $ | 92,648 | | | $ | 89,657 | | |
| | | | | | | | | | | | | | | | |
Total Nonperforming Loans/Gross Loans | | 3.73% | | | 3.50% | | | 3.06% | | | 3.13% | | | 3.38% | | |
Total Legacy Nonperforming Loans/Legacy Gross Loans | | 3.13% | | | 2.97% | | | 2.87% | | | 2.83% | | | 2.89% | | |
| | | | | | | | | | | | | | | | |
Total Nonperforming Assets/Total Assets | | 3.22% | | | 3.18% | | | 2.90% | | | 2.87% | | | 2.61% | | |
Total Legacy Nonperforming Assets/Total Assets | | 2.48% | | | 2.50% | | | 2.47% | | | 2.24% | | | 2.00% | | |
(continued)
15
Wilshire Bancorp Inc. – 2Q 2011 Results
July 25, 2011
Page 16
LOAN ORIGINATION AMOUNT | | Quarter Ended | |
(Dollars In Thousands) | | Jun 30, 2011 | | Mar 31, 2011 | | Dec 31, 2010 | | Sep 30, 2010 | | Jun 30, 2010 | |
| | | | | | | | | | | |
Total new loan origination amount, excluding renewal | | $ | 82,183 | | $ | 120,037 | | $ | 169,051 | | $ | 112,911 | | $ | 186,121 | |
| | | | | | | | | | | | | | | | |
SBA new loan origination amount, excluding renewal | | $ | 27,665 | | $ | 48,459 | | $ | 47,735 | | $ | 17,613 | | $ | 32,630 | |
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS | | Quarter Ended | | Six Months Ended | |
(Dollars In Thousands) | | | | Jun 30, 2011 | | Jun 30, 2010 | | Jun 30, 2011 | | Jun 30, 2010 | |
Balance at beginning of period | | | | | 3,926 | | $ | 2,585 | | | 3,926 | | | 2,515 | |
Provision for losses on off-balance sheet items | | | | | 177 | | | 931 | | | 177 | | | 1,001 | |
Balance at end of period | | | | $ | 4,103 | | $ | 3,516 | | $ | 4,103 | | $ | 3,516 | |
Reconciliation of GAAP financial measures to non-GAAP financial measures:
Tangible Common Equity and Tangible Assets (dollars in thousands, except per share data) (unaudited)
| | Quarter Ended | |
| | June 30, 2011 | | | March 31, 2011 | | | June 30, 2010 | | |
| | | | | | | | | | |
Total stockholders’ equity | | $ | 283,494 | | | $ | 177,752 | | | $ | 267,435 | | |
Preferred stock, net of discount | | (60,721 | ) | | (60,584 | ) | | (60,186 | ) | |
Goodwill and other intangible assets, net | | (1,483 | ) | | (8,239 | ) | | (8,504 | ) | |
Tangible common equity | | $ | 221,290 | | | $ | 108,929 | | | $ | 198,745 | | |
| | | | | | | | | | |
Total assets | | $ | 2,674,577 | | | $ | 2,789,101 | | | $ | 3,437,094 | | |
Goodwill and other intangible assets, net | | (1,483 | ) | | (8,239 | ) | | (8,504 | ) | |
Tangible assets | | $ | 2,673,094 | | | $ | 2,780,862 | | | $ | 3,428,590 | | |
| | | | | | | | | | |
Common shares outstanding | | 71,291,614 | | | 29,471,714 | | | 29,476,734 | | |
Reconciliation of GAAP financial measures to non-GAAP financial measures:
Net Income Excluding Goodwill (dollars in thousands, except per share data) (unaudited)
| | Quarter Ended | | Six Months Ended | | |
| | June 30, 2011 | | June 30, 2011 | | |
| | | | | | |
GAAP Net (Loss) Income Available to Common Shareholders | | $ | (4,562) | | $ | (56,668) | | |
| | | | | | |
GAAP PER COMMON SHARE INFORMATION | | | | | | |
Basic Earnings Per Common Share | | $ | (0.09) | | $ | (1.42) | | |
Diluted Earnings Per Common Share | | $ | (0.09) | | $ | (1.42) | | |
| | | | | | |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | | | | | | |
Basic | | 50,151,459 | | 39,870,987 | | |
Diluted | | 50,151,459 | | 39,870,987 | | |
| | | | | | |
Goodwill Impairment Loss (1) | | $ | 6,675 | | $ | 6,675 | | |
| | | | | | |
Non-GAAP Net (Loss) Income Available to Common Shareholders, | | | | | | |
Excluding Impairment Loss on Goodwill | | $ | 2,113 | | $ | (49,993) | | |
| | | | | | |
NON-GAAP PER COMMON SHARE INFORMATION | | | | | | |
EXCLUDING IMPAIRMENT LOSS ON GOODWILL | | | | | | |
Basic Earnings Per Common Share | | $ | 0.04 | | $ | (1.25) | | |
Diluted Earnings Per Common Share | | $ | 0.04 | | $ | (1.25) | | |
(1) Preliminary in nature, as discussed in body of release
(continued)
16
Wilshire Bancorp Inc. – 2Q 2011 Results
July 25, 2011
Page 17
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(dollars in thousands) (unaudited)
| | For the Quarter Ended |
| | June 30, 2011 | | March 31, 2011 | | June 30, 2011 |
| | Average | | Interest | | Average | | Average | | Interest | | Average | | Average | | Interest | | Average |
| | Balance | | Income/ | | Yield/ | | Balance | | Income/ | | Yield/ | | Balance | | Income/ | | Yield/ |
| | | | Expense | | Rate | | | | Expense | | Rate | | | | Expense | | Rate |
| | | | | | | | | | | | | | | | | | |
INTEREST EARNING ASSETS | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Real Estate Loans | | $1,883,055 | | $26,075 | | 5.54% | | $1,995,191 | | $27,656 | | 5.54% | | $2,058,774 | | $29,850 | | 5.80% |
Commercial Loans | | 299,078 | | 3,873 | | 5.18% | | 327,887 | | 4,592 | | 5.60% | | 378,752 | | 5,363 | | 5.66% |
Consumer Loans | | 14,809 | | 114 | | 3.08% | | 15,157 | | 121 | | 3.19% | | 17,584 | | 179 | | 4.07% |
Total Gross Loans | | 2,196,942 | | 30,062 | | 5.47% | | 2,338,235 | | 32,369 | | 5.54% | | 2,455,110 | | 35,392 | | 5.77% |
| | | | | | | | | | | | | | | | | | |
Loan Fees toward Yield | | | | 705 | | | | | | 1,093 | | | | | | 687 | | |
Allowance for Loan Losses & Unearned Income | | (124,698 | ) | | | | | (120,156 | ) | | | | | (87,250 | ) | | | |
Net Loans | | 2,072,244 | | 30,767 | | 5.94% | | 2,218,079 | | 33,462 | | 6.03% | | 2,367,860 | | 36,079 | | 6.09% |
| | | | | | | | | | | | | | | | | | |
INVESTMENT SECURITIES AND | | | | | | | | | | | | | | | | | | |
OTHER INTEREST-EARNING ASSETS: | | | | | | | | | | | | | | | | | | |
Investment Securities* | | 333,044 | | 2,156 | | 2.86% | | 334,694 | | 1,983 | | 2.66% | | 647,782 | | 4,756 | | 3.12% |
Federal Funds Sold | | 91,475 | | 74 | | 0.32% | | 57,827 | | 179 | | 1.24% | | 158,584 | | 294 | | 0.74% |
Total Investment Securities and | | | | | | | | | | | | | | | | | | |
Other Earning Assets | | 424,519 | | 2,230 | | 2.32% | | 392,521 | | 2,162 | | 2.45% | | 806,366 | | 5,050 | | 2.65% |
| | | | | | | | | | | | | | | | | | |
TOTAL INTEREST-EARNING ASSETS | | $ 2,496,763 | | $32,997 | | 5.32% | | $2,610,600 | | $35,624 | | 5.50% | | $3,174,226 | | $41,129 | | 5.22% |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
INTEREST BEARING LIABILITIES | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
INTEREST-BEARING DEPOSITS: | | | | | | | | | | | | | | | | | | |
Money Market | | $600,686 | | $1,404 | | 0.93% | | $644,249 | | $1,408 | | 0.87% | | $972,096 | | $3,541 | | 1.46% |
NOW | | 22,724 | | 20 | | 0.35% | | 24,738 | | 23 | | 0.37% | | 22,019 | | 26 | | 0.47% |
Savings | | 86,382 | | 609 | | 2.82% | | 85,287 | | 598 | | 2.80% | | 75,677 | | 617 | | 3.26% |
Time Deposits of $100,000 or More | | 654,647 | | 1,587 | | 0.97% | | 670,542 | | 1,689 | | 1.01% | | 751,094 | | 2,764 | | 1.47% |
Other Time Deposits | | 374,346 | | 1,043 | | 1.11% | | 428,815 | | 1,392 | | 1.30% | | 702,866 | | 3,528 | | 2.01% |
Total Interest Bearing Deposits | | 1,738,785 | | 4,663 | | 1.07% | | 1,853,631 | | 5,110 | | 1.10% | | 2,523,752 | | 10,476 | | 1.66% |
| | | | | | | | | | | | | | | | | | |
BORROWINGS: | | | | | | | | | | | | | | | | | | |
FHLB Advances and Other Borrowings | | 188,967 | | 505 | | 1.07% | | 250,964 | | 730 | | 1.16% | | 138,805 | | 750 | | 2.16% |
Junior Subordinated Debentures | | 87,321 | | 494 | | 2.26% | | 87,321 | | 489 | | 2.24% | | 87,321 | | 664 | | 3.04% |
Total Borrowings | | 276,288 | | 999 | | 1.45% | | 338,285 | | 1,219 | | 1.44% | | 226,126 | | 1,414 | | 2.50% |
| | | | | | | | | | | | | | | | | | |
TOTAL INTEREST BEARING LIABILITIES | | $ 2,015,073 | | $5,662 | | 1.12% | | $2,191,916 | | $6,329 | | 1.16% | | $2,749,878 | | $11,890 | | 1.73% |
| | | | | | | | | | | | | | | | | | |
NET INTEREST INCOME | | | | $27,335 | | | | | | $29,295 | | | | | | $29,239 | | |
| | | | | | | | | | | | | | | | | | |
NET INTEREST SPREAD | | | | | | 4.20% | | | | | | 4.34% | | | | | | 3.49% |
| | | | | | | | | | | | | | | | | | |
NET INTEREST MARGIN | | | | | | 4.42% | | | | | | 4.53% | | | | | | 3.72% |
* Tax equivalent ratios for investment securities
(continued)
17
Wilshire Bancorp Inc. – 2Q 2011 Results
July 25, 2011
Page 18
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, 2011 | | June 30, 2010 | |
| | Average | | Interest | | Average | | Average | | Interest | | Average | |
| | Balance | | Income/ | | Yield/ | | Balance | | Income/ | | Yield/ | |
| | | | Expense | | Rate | | | | Expense | | Rate | |
INTEREST EARNING ASSETS | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Real Estate Loans | | $1,938,990 | | $53,732 | | 5.54% | | $2,045,150 | | $58,901 | | 5.76% | |
Commercial Loans | | 313,254 | | 8,465 | | 5.40% | | 380,351 | | 10,671 | | 5.61% | |
Consumer Loans | | 14,955 | | 234 | | 3.13% | | 16,912 | | 360 | | 4.26% | |
Total Gross Loans | | 2,267,199 | | 62,431 | | 5.51% | | 2,442,413 | | 69,932 | | 5.73% | |
Loan Fees toward Yield | | | | 1,798 | | | | | | 1,451 | | | |
Allowance for Loan Losses & Unearned Income | | (122,440) | | | | | | (78,699) | | | | | |
Net Loans | | 2,144,759 | | 64,229 | | 5.99% | | 2,363,714 | | 71,383 | | 6.04% | |
| | | | | | | | | | | | | |
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS: | | | | | | | | | | | | | |
Investment Securities* | | 333,865 | | 4,139 | | 2.76% | | 656,526 | | 10,371 | | 3.34% | |
Federal Funds Sold | | 80,214 | | 253 | | 0.63% | | 144,851 | | 676 | | 0.93% | |
Total Investment Securities and | | | | | | | | | | | | | |
Other Earning Assets | | 414,079 | | 4,392 | | 2.35% | | 801,377 | | 11,047 | | 2.90% | |
| | | | | | | | | | | | | |
TOTAL INTEREST-EARNING ASSETS | | $ 2,558,838 | | $68,621 | | 5.40% | | $3,165,091 | | $82,430 | | 5.25% | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
INTEREST BEARING LIABILITIES | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
INTEREST-BEARING DEPOSITS: | | | | | | | | | | | | | |
Money Market | | $622,347 | | $2,811 | | 0.90% | | $964,110 | | $7,563 | | 1.57% | |
NOW | | 23,725 | | 43 | | 0.36% | | 22,249 | | 55 | | 0.49% | |
Savings | | 85,838 | | 1,207 | | 2.81% | | 74,869 | | 1,203 | | 3.21% | |
Time Deposits of $100,000 or More | | 665,088 | | 3,277 | | 0.99% | | 759,933 | | 5,812 | | 1.53% | |
Other Time Deposits | | 398,892 | | 2,435 | | 1.22% | | 689,396 | | 7,017 | | 2.04% | |
Total Interest Bearing Deposits | | 1,795,890 | | 9,773 | | 1.09% | | 2,510,557 | | 21,650 | | 1.72% | |
| | | | | | | | | | | | | |
BORROWINGS: | | | | | | | | | | | | | |
FHLB Advances and Other Borrowings | | 219,794 | | 1,234 | | 1.12% | | 143,377 | | 1,670 | | 2.33% | |
Junior Subordinated Debentures | | 87,321 | | 983 | | 2.25% | | 87,321 | | 1,313 | | 3.01% | |
Total Borrowings | | 307,115 | | 2,217 | | 1.44% | | 230,698 | | 2,983 | | 2.59% | |
| | | | | | | | | | | | | |
TOTAL INTEREST BEARING LIABILITIES | | $ 2,103,005 | | $11,990 | | 1.14% | | $2,741,255 | | $24,633 | | 1.80% | |
| | | | | | | | | | | | | |
NET INTEREST INCOME | | | | $56,631 | | | | | | $57,797 | | | |
| | | | | | | | | | | | | |
NET INTEREST SPREAD | | | | | | 4.26% | | | | | | 3.45% | |
| | | | | | | | | | | | | |
NET INTEREST MARGIN | | | | | | 4.46% | | | | | | 3.69% | |
* Tax equivalent ratios for investment securities
(concluded)
18
