Exhibit 99.1
| 
| |
WILSHIRE BANCORP, INC. | NEWS RELEASE |
CONTACT: |
Alex Ko, EVP & CFO, (213) 427-6560 |
www.wilshirebank.com | |
Wilshire Bancorp Reports Net Income of $15.2 Million or
$0.21 Earnings per Share for Fourth Quarter 2012
LOS ANGELES, January 23, 2013 - Wilshire Bancorp, Inc. (NASDAQ: WIBC) (the “Company”), the holding company for Wilshire State Bank (the “Bank”), today reported net income available to common shareholders of $15.2 million, or $0.21 per diluted common share, for the quarter ended December 31, 2012. This compares to net income available to common shareholders of $5.8 million, or $0.08 per common share, for the same period of the prior year, and net income of $38.5 million, or $0.54 per common share, for the third quarter of 2012. The increase in net income from the fourth quarter of 2011 is primarily attributable to a $12.0 million negative provision for losses on loans and loan commitments. The decline in net income from the third quarter of 2012 is primarily attributable to the return to a normalized tax provision.
For the full year 2012, the Company reported net income available to common shareholders of $93.7 million, or $1.31 per diluted common share, compared with a net loss of $34.0 million, or ($0.61) per share, for the full year 2011.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, “We ended 2012 with another strong quarter, which contributed to the most profitable year in the history of the Company. Our new business development efforts continue to gain momentum, as we had $264 million in loan originations during the fourth quarter, which represents our highest level of loan production in several years. At the same time, our credit quality continues to show strong improvement with non-covered non-accrual loans declining by 32% from the end of the prior quarter. This improvement reflects our effective management of problem assets, which is resulting in a steady migration of non-accrual loans back to accrual status and the continued pay-down of outstanding problem loans.
“As we begin 2013, we are optimistic that we will continue to generate solid profitability. We expect to continue seeing good demand for CRE loans, and we believe the investments we have made to build our commercial, SBA, and residential real estate lending businesses will continue to generate strong loan production this year. In addition, we continue to have a significant amount of excess capital that we can utilize to create additional value for shareholders going forward,” said Mr. Yoo.
Wilshire Bancorp Inc. – 4Q 2012 Results
January 23, 2013
Page 2
Q4 2012 Summary:
§ Net income available to common shareholders of $15.2 million or $0.21 per diluted share
§ Loans receivable totaled $2.01 billion at December 31, 2012, an increase of 3.0% from $1.95 billion at September 30, 2012
§ Loan originations for the fourth quarter of 2012 totaled $264.4 million, compared to total loan originations of $209.2 million for the third quarter of 2012
§ Improved deposit mix with non-interest-bearing demand deposits increasing to 27.0% of total deposits at December 31, 2012 from 24.8% at September 30, 2012
§ Non-covered non-accrual loans declined 31.7% and non-covered delinquencies declined 56.8% from end of prior quarter
§ Non-covered classified and criticized loans declined 4.7% and 12.6%, respectively, from Q3 2012 to Q4 2012
§ Improved credit quality and reduced gross charge-offs resulted in a $12.0 million negative provision for losses on loans and loan commitments for Q4 2012
STATEMENT OF OPERATIONS
Net Interest Income and Margin
Net interest income before credit for losses on loans and loan commitments totaled $25.6 million in the fourth quarter of 2012, an increase of 1.6% from $25.2 million for the fourth quarter of 2011, and unchanged from the third quarter of 2012. The increase from the prior year was primarily due to a decline in interest expense on both deposits and borrowings.
Net interest margin was 4.33% for the fourth quarter of 2012, compared to 4.17% in the fourth quarter of 2011, and 4.35% for the third quarter of 2012. The decrease in net interest margin from the third quarter of 2012 was primarily due to lower yields on loans, partially offset by a reduction in the cost of deposits and a reduction in interest earning cash at the Federal Reserve Bank.
Loan yields decreased to 5.54% for the fourth quarter of 2012 from 5.73% for the third quarter of 2012 due to the large amount of loans that were originated at rates that were lower than that of the existing portfolio, due to the low interest rate environment and competitive landscape within the banking industry. The total cost of interest-bearing deposits declined to 0.79% for the fourth quarter of 2012, down from 0.87% for the third quarter of 2012. Cost of total deposits was reduced to 0.59% for the fourth quarter of 2012, compared to 0.66% during the previous quarter. The reduction in deposit rates was a result of declines in deposit costs across all categories combined with an increase in demand deposits as a percentage of total deposits.
Non-Interest Income
Total non-interest income was $6.7 million for the fourth quarter of 2012, compared to $5.8 million for the fourth quarter of 2011, and $6.6 million for third quarter of 2012. The major categories of non-interest income in the fourth quarter of 2012 were relatively unchanged from the prior quarter. Other non-interest income for the fourth quarter of 2012 slightly increased compared to prior quarters due to an increase in loan servicing income.
The $1.2 million in net gains on sales of loans recognized in the fourth quarter of 2012 represents $1.1 million in gains from the sale of SBA loans, and $84 thousand in gains from the sale of mortgage and other loans.
2
Wilshire Bancorp Inc. – 4Q 2012 Results
January 23, 2013
Page 3
Non-Interest Expense
Total non-interest expense was $20.7 million for the fourth quarter of 2012, compared with $16.2 million for the fourth quarter of 2011, and $18.3 million for the third quarter of 2012. The increase in total non-interest expense for the fourth quarter of 2012 compared to prior quarters was primarily due to a higher impairment charge against the FDIC indemnification asset.
During the fourth quarter of 2012, the Company recorded an additional impairment of the FDIC indemnification asset amounting to $3.9 million. The impairment reflected the continuing overall improved credit quality in the covered loan portfolio. The FDIC indemnification asset balance at December 31, 2012, after reflecting the impairment charge of $3.9 million, was $5.4 million.
Total salaries and employee benefits expense was $7.9 million in the fourth quarter of 2012, compared with $7.1 million in the fourth quarter of 2011, and $9.4 million in the third quarter of 2012. The decrease from the prior quarter was primarily due to a reduction in bonus accruals recorded during the fourth quarter of 2012. Compared to the fourth quarter of 2011, salaries and benefits for the fourth quarter of 2012 increased primarily due to an increase in the number of employees.
Other non-interest expense for the fourth quarter of 2012 totaled $6.2 million, compared with $6.5 million in the fourth quarter of 2011, and $4.4 million for the third quarter of 2012. The increase from the prior quarter was primarily attributable to increased professional fees and other loan expenses.
The Company’s operating efficiency ratio was 64.1% for the fourth quarter of 2012, compared with 52.4% for the fourth quarter of 2011 and 57.0% for the third quarter of 2012. The increase in efficiency ratio for the fourth quarter of 2012 compared to prior quarters is largely due to the $3.9 million impairment charge on the FDIC indemnification asset and the increase in other non-interest expense.
Tax Provision
For the fourth quarter of 2012, the Company recorded a provision for income taxes totaling $8.4 million, reflecting an effective tax rate of 35.6%. This reflects the Company’s return to a more normalized effective tax rate following several quarters of recording no tax provision or a tax benefit due to the reversal of the valuation allowance that had been established against the Company’s deferred tax asset.
BALANCE SHEET
Total gross loans, including loans held-for-sale, were $2.16 billion at December 31, 2012, compared to $2.09 billion at September 30, 2012. The increase in total gross loans during the fourth quarter of 2012 was primarily due to the increase in loan originations during the 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.
3
Wilshire Bancorp Inc. – 4Q 2012 Results
January 23, 2013
Page 4
The following table shows “covered” and “non-covered” gross loans (excluding loan fees and allowance for loan losses) by loan type:
Loan Categories
(Dollars In Thousands) | | Quarter Ended | |
| | | | | | | | | | | |
Gross Non-Covered Loans | | Dec 31, 2012 | | Sep 30, 2012 | | Jun 30, 2012 | | Mar 31, 2012 | | Dec 31, 2011 | |
| | | | | | | | | | | |
Construction | | $ | 20,928 | | $ | 20,311 | | $ | 27,030 | | $ | 38,552 | | $ | 61,832 | |
Real Estate Secured | | 1,719,762 | | 1,641,851 | | 1,558,274 | | 1,472,450 | | 1,490,504 | |
Commercial & Industrial | | 289,782 | | 287,045 | | 290,063 | | 269,501 | | 253,092 | |
Consumer | | 13,665 | | 14,139 | | 13,530 | | 16,362 | | 15,001 | |
Total Non-Covered Gross Loans | | $ | 2,044,137 | | $ | 1,963,346 | | $ | 1,888,897 | | $ | 1,796,865 | | $ | 1,820,429 | |
Held-For-Sale Loans Included Above | | $ | 145,973 | | $ | 140,109 | | $ | 66,485 | | $ | 43,334 | | $ | 48,955 | |
| | | | | | | | | | | |
Gross Covered Loans | | | | | | | | | | | |
| | | | | | | | | | | |
Real Estate Secured | | $ | 99,534 | | $ | 113,874 | | $ | 119,985 | | $ | 137,051 | | $ | 137,144 | |
Commercial & Industrial | | 13,486 | | 15,875 | | 18,756 | | 20,824 | | 28,267 | |
Consumer | | 9 | | 14 | | 65 | | 71 | | 79 | |
Total Covered Gross Loans | | $ | 113,029 | | $ | 129,763 | | $ | 138,806 | | $ | 157,946 | | $ | 165,490 | |
Held-For-Sale Loans Included Above | | $ | - | | $ | - | | $ | - | | $ | 4,794 | | $ | 4,859 | |
| | | | | | | | | | | |
Total Gross Loans | | | | | | | | | | | |
| | | | | | | | | | | |
Construction | | $ | 20,928 | | $ | 20,311 | | $ | 27,030 | | $ | 38,552 | | $ | 61,832 | |
Real Estate Secured | | 1,819,296 | | 1,755,725 | | 1,678,259 | | 1,609,501 | | 1,627,648 | |
Commercial & Industrial | | 303,268 | | 302,920 | | 308,819 | | 290,325 | | 281,359 | |
Consumer | | 13,674 | | 14,153 | | 13,595 | | 16,433 | | 15,080 | |
Total Gross Loans | | $ | 2,157,166 | | $ | 2,093,109 | | $ | 2,027,703 | | $ | 1,954,811 | | $ | 1,985,919 | |
Held-For-Sale Loans Included Above | | $ | 145,973 | | $ | 140,109 | | $ | 66,485 | | $ | 48,128 | | $ | 53,814 | |
Loan originations for the fourth quarter of 2012 totaled $264.4 million, compared to total loan originations of $209.2 million for the third quarter of 2012. The increase in total loan originations from the prior quarter was attributable to an increase in originations of commercial real estate loans and SBA loans.
The following table shows quarterly loan originations by loan type:
Loan Originations
| | Quarter Ended |
(Dollars In Thousands) | | December 31, 2012 | | September 30, 2012 | | June 30, 2012 | | March 31, 2012 | | December 31, 2011 |
Real Estate Secured | | $ | 157,901 | | 60% | | $ | 80,700 | | 39% | | $ | 81,782 | | 33% | | $ | 46,029 | | 36% | | $ | 22,608 | | 21% |
Commercial & Industrial | | 34,059 | | 13% | | 40,683 | | 19% | | 50,469 | | 21% | | 27,223 | | 22% | | 40,517 | | 37% |
Consumer | | 3,083 | | 1% | | 1,805 | | 1% | | 304 | | 0% | | 100 | | 0% | | 161 | | 0% |
SBA Loans | | 38,700 | | 15% | | 27,457 | | 13% | | 37,989 | | 16% | | 33,043 | | 26% | | 29,035 | | 26% |
Residential Mortgage Loans | | 30,624 | | 11% | | 58,589 | | 28% | | 74,673 | | 30% | | 20,630 | | 16% | | 17,292 | | 16% |
Total Loan Originations | | $ | 264,367 | | 100% | | $ | 209,234 | | 100% | | $ | 245,217 | | 100% | | $ | 127,025 | | 100% | | $ | 109,613 | | 100% |
Total SBA loans held-for-sale at the end of the fourth quarter of 2012 totaled $72.8 million compared to $51.6 million at the end of the previous quarter. The remaining $73.2 million in loans held-for-sale at December 31, 2012 were comprised entirely of mortgage loans. The decision to retain or sell SBA loan production will be made on a quarter-to-quarter basis, dependent upon pricing in the secondary market and the Company’s liquidity needs. During the fourth quarter of 2012, the Company sold approximately $9.8 million in SBA loans.
4
Wilshire Bancorp Inc. – 4Q 2012 Results
January 23, 2013
Page 5
Total OREO was $2.1 million at December 31, 2012, compared with $2.3 million at September 30, 2012. Outflow from OREO during the fourth quarter of 2012 consisted of 1 sold property totaling approximately $300 thousand. Inflow into OREO during the fourth quarter of 2012 consisted of 1 property totaling approximately $100 thousand.
Total deposits were $2.17 billion at December 31, 2012, unchanged from $2.17 billion at September 30, 2012. Increases in non-interest bearing demand deposits enabled the Company to run off higher costing deposits, resulting in an overall improved deposit mix. Non-interest bearing deposits accounted for 27% of total deposits at December 31, 2012, an increase from 23% at the end of the prior year.
FHLB borrowings increased to $150.0 million at the end of the fourth quarter of 2012, compared to $60.0 million at the end of the fourth quarter of 2011. There were no borrowings outstanding at the end of the third quarter of 2012. The increase in FHLB borrowings was primarily to fund loan originations.
During the third quarter of 2012, $10.0 million in subordinated debentures issued by Wilshire State Bank was redeemed. An additional $15.5 million in subordinated debentures issued by Wilshire Bancorp were redeemed during the fourth quarter of 2012. The interest rate of the junior subordinated debentures redeemed during the fourth quarter of 2012 was approximately 3.24% at the time of the redemption. At December 31, 2012, $61.9 million in subordinated debentures remained outstanding, all previously issued by Wilshire Bancorp.
CREDIT QUALITY
The Company has experienced improving credit trends for over a year with declining trends in non-performing loans, classified loans, delinquencies, and charge-offs. In light of the continued improvements in credit quality, the Company recorded a negative provision for losses on loans and loan commitments of $12.0 million in the fourth quarter of 2012. The allowance for loan losses totaled $63.3 million, or 3.15% of gross loans (excluding loans held-for-sale), at December 31, 2012, compared to $74.4 million, or 3.81% of gross loans (excluding loans held-for-sale) at September 30, 2012. The coverage ratio of the allowance for loan losses to non-performing assets was 210.7% at December 31, 2012, compared with 180.7% at September 30, 2012. Allowance coverage of legacy Wilshire loans (excluding loans held-for-sale) was 3.33% at December 31, 2012, compared with 4.08% at September 30, 2012.
Non-Accrual Loans
At December 31, 2012, total non-covered non-accrual loans were $23.0 million, or 1.13% of gross non-covered loans, compared to $33.7 million, or 1.72% of gross non-covered loans, at September 30, 2012. Non-covered non-accrual loans experienced a 31.7% decline from the third to fourth quarter of 2012.
5
Wilshire Bancorp Inc. – 4Q 2012 Results
January 23, 2013
Page 6
The following 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 | | Dec 31, 2012 | | Sep 30, 2012 | | Jun 30, 2012 | | Mar 31, 2012 | | Dec 31, 2011 |
| | | | | | | | | | |
Construction | | $ | 5,644 | | $ | 7,678 | | $ | 8,139 | | $ | 8,139 | | $ | 12,548 |
Real Estate Secured | | 16,203 | | 25,124 | | 25,762 | | 26,082 | | 15,696 |
Commercial & Industrial | | 1,172 | | 892 | | 1,095 | | 1,261 | | 1,573 |
Total Non-Covered Non-Accrual Loans | | $ | 23,019 | | $ | 33,694 | | $ | 34,996 | | $ | 35,482 | | $ | 29,817 |
| | | | | | | | | | |
Covered Loans | | | | | | | | | | |
| | | | | | | | | | |
Real Estate Secured | | $ | 4,804 | | $ | 4,602 | | $ | 6,396 | | $ | 15,400 | | $ | 13,392 |
Commercial & Industrial | | 130 | | 586 | | 93 | | 109 | | 623 |
Total Covered Non-Accrual Loans | | $ | 4,934 | | $ | 5,188 | | $ | 6,489 | | $ | 15,509 | | $ | 14,015 |
| | | | | | | | | | |
Total Non-Accrual Loans | | | | | | | | | | |
| | | | | | | | | | |
Construction | | $ | 5,644 | | $ | 7,678 | | $ | 8,139 | | $ | 8,139 | | $ | 12,548 |
Real Estate Secured | | 21,007 | | 29,726 | | 32,158 | | 41,482 | | 29,088 |
Commercial & Industrial | | 1,302 | | 1,478 | | 1,188 | | 1,370 | | 2,196 |
Total Non-Accrual Loans | | $ | 27,953 | | $ | 38,882 | | $ | 41,485 | | $ | 50,991 | | $ | 43,832 |
The inflow into total (covered and non-covered) non-accrual loans was $4.5 million in the fourth quarter of 2012, compared with inflow of $5.3 million in the third quarter of 2012. The fourth quarter of 2012 represented the lowest level of inflow to non-accrual status experienced by the Bank in the past several years. Total outflow from total non-accrual loans was $15.5 million during the fourth quarter of 2012, compared with $7.9 million for the third quarter of 2012. The increase in outflow of non-accrual loans was largely due to $8.4 million in loans that were paid-off and $2.8 million in loans that migrated back to current status. The remaining $4.3 million in outflows were comprised of payments, amortizations, note sales, charge-offs, and outflow to OREO.
Troubled Debt Restructured Loans
At December 31, 2012, total non-covered troubled debt restructured loans or “TDR loans”, were $29.7 million, essentially unchanged from $29.8 million at September 30, 2012.
Total TDR loans by loan category are shown in the table below:
TROUBLED DEBT RESTRUCTURED LOANS
(Dollars In Thousands, Net of SBA Guaranteed Portions)
| | Quarter Ended |
Non-Covered Loans | | Dec 31, 2012 | | Sep 30, 2012 | | Jun 30, 2012 | | Mar 31, 2012 | | Dec 31, 2011 |
| | | | | | | | | | |
Real Estate Secured | | $ | 23,816 | | $ | 24,136 | | $ | 18,347 | | $ | 12,648 | | $ | 11,460 |
Commercial & Industrial | | 5,870 | | 5,695 | | 5,845 | | 6,046 | | 3,235 |
Total Non-Covered TDR Loans | | $ | 29,686 | | $ | 29,831 | | $ | 24,192 | | $ | 18,694 | | $ | 14,695 |
| | | | | | | | | | |
Covered Loans | | | | | | | | | | |
| | | | | | | | | | |
Real Estate Secured | | $ | 4,452 | | $ | 4,388 | | $ | 2,372 | | $ | 7,964 | | $ | 6,377 |
Commercial & Industrial | | 1,595 | | 1,787 | | 1,138 | | 1,283 | | 1,311 |
Total Covered TDR Loans | | $ | 6,047 | | $ | 6,175 | | $ | 3,510 | | $ | 9,247 | | $ | 7,688 |
| | | | | | | | | | |
Total TDRs Loans | | | | | | | | | | |
| | | | | | | | | | |
Real Estate Secured | | $ | 28,268 | | $ | 28,524 | | $ | 20,719 | | $ | 20,612 | | $ | 17,837 |
Commercial & Industrial | | 7,465 | | 7,482 | | 6,983 | | 7,329 | | 4,546 |
Total TDR Loans | | $ | 35,733 | | $ | 36,006 | | $ | 27,702 | | 27,941 | | $ | 22,383 |
6
Wilshire Bancorp Inc. – 4Q 2012 Results
January 23, 2013
Page 7
Of the total $35.7 million in TDR loans at December 31, 2012, $6.5 million were also classified as non-accrual, of which $4.0 million were non-covered. The remaining TDR loans were performing in accordance with their modified terms. Inflow into TDR declined to $903 thousand for the fourth quarter of 2012 compared to $9.4 million during the previous quarter. Outflow from TDR increased slightly to $1.4 million during the fourth quarter 2012, compared to $1.1 million during the third quarter of 2012.
Loan Delinquencies (Excluding Non-Accrual Loans)
At December 31, 2012, total non-covered loan delinquencies were $3.6 million, compared with $8.4 million at September 30, 2012. Non-covered delinquent loans declined by 56.8% from the third quarter of 2012, to the fourth quarter of 2012, and represented the lowest level of delinquencies in several years.
Delinquent loans by days past due 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 | | Dec 31, 2012 | | Sep 30, 2012 | | Jun 30, 2012 | | Mar 31, 2012 | | Dec 31, 2011 |
| | | | | | | | | | |
30 - 59 Days Past Due | | $ | 2,663 | | $ | 6,855 | | $ | 8,461 | | $ | 5,361 | | $ | 4,890 |
60 - 89 Days Past Due | | 948 | | 1,503 | | 1,412 | | 2,837 | | 9,762 |
90 Days, and still accruing | | - | | - | | 923 | | 933 | | - |
Total Non-Covered Delinquent Loans | | $ | 3,611 | | $ | 8,358 | | $ | 10,796 | | $ | 9,131 | | $ | 14,652 |
| | | | | | | | | | |
Covered Loans | | | | | | | | | | |
| | | | | | | | | | |
30 - 59 Days Past Due | | $ | 396 | | $ | 652 | | $ | 696 | | $ | 987 | | $ | 355 |
60 - 89 Days Past Due | | 226 | | 1,491 | | - | | 240 | | 513 |
90 Days, and still accruing | | - | | - | | - | | - | | - |
Total Covered Delinquent Loans | | $ | 622 | | $ | 2,143 | | $ | 696 | | $ | 1,227 | | $ | 868 |
| | | | | | | | | | |
Total Delinquent Loans | | | | | | | | | | |
| | | | | | | | | | |
30 - 59 Days Past Due | | $ | 3,059 | | $ | 7,507 | | $ | 9,157 | | $ | 6,348 | | $ | 5,245 |
60 - 89 Days Past Due | | 1,174 | | 2,994 | | 1,412 | | 3,077 | | 10,275 |
90 Days, and still accruing | | - | | - | | 923 | | 933 | | - |
Total Delinquent Loans | | $ | 4,233 | | $ | 10,501 | | $ | 11,492 | | $ | 10,358 | | $ | 15,520 |
Total inflow into loan delinquencies was $2.5 million in the fourth quarter of 2012, compared with $8.6 million in the prior quarter. Total outflow from loan delinquencies was $8.8 million in the fourth quarter of 2012 compared with $9.6 million in the prior quarter. The $8.8 million in fourth quarter outflows consisted of $3.6 million in loans that migrated to current status, $1.9 million that were sold, and $1.8 million in delinquencies that migrated to non-accrual status, with the remainder either being paid-down or charged-off.
Of the total $4.2 million in delinquent loans at December 31, 2012, $2.7 million was comprised of delinquent real estate secured loans and $1.5 million consisted of delinquent commercial and industrial loans. Over 70% of total delinquent loans at December 31, 2012 were past due less than 60 days.
Loan Classifications
At December 31, 2012, total non-covered classified loans (loans graded substandard, doubtful, and loss) totaled $138.4 million, compared with $145.2 million at September 30, 2012. Non-covered criticized loans (loans graded special mention) were $78.3 million at December 31, 2012, compared with $89.5 million at September 30, 2012.
7
Wilshire Bancorp Inc. – 4Q 2012 Results
January 23, 2013
Page 8
Loan balances broken down by classification are reflected in the table below:
LOAN CLASSIFICATIONS
(Dollars In Thousands, Net of SBA Guaranteed Portions)
| | Quarter Ended |
Non-Covered Loans | | Dec 31, 2012 | | Sep 30, 2012 | | Jun 30, 2012 | | Mar 31, 2012 | | Dec 31, 2011 |
| | | | | | | | | | |
Special Mention | | $ | 78,251 | | $ | 89,522 | | $ | 75,219 | | $ | 93,303 | | $ | 119,434 |
Substandard | | 133,060 | | 139,414 | | 153,699 | | 148,788 | | 136,559 |
Doubtful | | 5,295 | | 5,740 | | 5,316 | | 6,032 | | 5,769 |
Total Non-Covered Gross Loans | | $ | 216,606 | | $ | 234,676 | | $ | 234,234 | | $ | 248,123 | | $ | 261,762 |
| | | | | | | | | | |
Covered Loans | | | | | | | | | | |
| | | | | | | | | | |
Special Mention | | $ | 4,024 | | $ | 5,194 | | $ | 9,126 | | $ | 15,357 | | $ | 17,438 |
Substandard | | 24,132 | | 26,059 | | 24,591 | | 27,087 | | 22,487 |
Doubtful | | 1,561 | | 1,604 | | 3,405 | | 11,668 | | 10,578 |
Total Covered Gross Loans | | $ | 29,717 | | $ | 32,857 | | $ | 37,122 | | $ | 54,112 | | $ | 50,503 |
| | | | | | | | | | |
Total Loans | | | | | | | | | | |
| | | | | | | | | | |
Special Mention | | $ | 82,275 | | $ | 94,716 | | $ | 84,345 | | $ | 108,660 | | $ | 136,872 |
Substandard | | 157,192 | | 165,473 | | 178,290 | | 175,875 | | 159,046 |
Doubtful | | 6,856 | | 7,344 | | 8,721 | | 17,700 | | 16,347 |
Total Gross Loans | | $ | 246,323 | | $ | 267,533 | | $ | 271,356 | | $ | 302,235 | | $ | 312,265 |
Gross Loan Charge-offs
Non-covered loan charge-offs for the fourth quarter of 2012 totaled $2.6 million, compared to $3.1 million in the third quarter of 2012. The Company also had loan recoveries of $2.5 million in the fourth quarter of 2012. Net non-covered charge-offs totaled $143 thousand during the fourth quarter of 2012.
Charge-offs by loan type are reflected in the table below:
LOAN CHARGE-OFFS
(Dollars In Thousands)
| | Quarter Ended |
Non-Covered Loans | | Dec 31, 2012 | | Sep 30, 2012 | | Jun 30, 2012 | | Mar 31, 2012 | | Dec 31, 2011 |
| | | | | | | | | | |
Real Estate Secured | | $ | 1,768 | | $ | 3,004 | | $ | 2,734 | | $ | 2,826 | | $ | 829 |
Commercial & Industrial | | 840 | | 70 | | 502 | | 1,299 | | 2,543 |
Consumer | | - | | - | | 1 | | 1 | | 1 |
Total Non-Covered Charge-Offs Loans | | $ | 2,608 | | $ | 3,074 | | $ | 3,237 | | $ | 4,126 | | $ | 3,373 |
| | | | | | | | | | |
Covered Loans | | | | | | | | | | |
| | | | | | | | | | |
Real Estate Secured | | $ | 8 | | $ | 11 | | $ | 196 | | $ | 102 | | $ | 426 |
Commercial & Industrial | | 384 | | 42 | | 9 | | 136 | | 268 |
Total Covered Charge-Offs Loans | | $ | 392 | | $ | 53 | | $ | 205 | | $ | 238 | | $ | 694 |
| | | | | | | | | | |
Total Loan Charge-Offs | | | | | | | | | | |
| | | | | | | | | | |
Real Estate Secured | | 1,776 | | 3,015 | | 2,930 | | 2,928 | | 1,255 |
Commercial & Industrial | | 1,224 | | 112 | | 511 | | 1,435 | | 2,811 |
Consumer | | - | | - | | 1 | | 1 | | 1 |
Total Charge-Offs Loans | | $ | 3,000 | | $ | 3,127 | | $ | 3,442 | | $ | 4,364 | | $ | 4,067 |
8
Wilshire Bancorp Inc. – 4Q 2012 Results
January 23, 2013
Page 9
CAPITAL RATIOS
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) | | December 31, 2012 | | Well Capitalized
Regulatory
Requirements | | Total Excess Above
Well Capitalized
Requirements |
| | | | | | |
Tier 1 Leverage Capital Ratio | | 14.87% | | 5.00% | | $ | 255,419 |
Tier 1 Risk-Based Capital Ratio | | 18.47% | | 6.00% | | $ | 259,835 |
Total Risk-Based Capital Ratio | | 19.74% | | 10.00% | | $ | 202,998 |
Tangible Common Equity To Tangible Assets | | 12.20% | | N/A | | N/A |
Tangible Common Equity Per Common Share | | $ | 4.69 | | N/A | | N/A |
| | | | | | | | |
The Company’s regulatory capital ratios declined from the third quarter of 2012 to the fourth quarter of 2012 due to the $15.5 million redemption of the junior subordinated debenture in December 2012. The junior subordinated debenture was previously included in the Company’s calculation of tier 1 and total capital. However, the reduction of regulatory capital was partially offset by the $14.9 million increase in capital that resulted from earnings for the three months ended December 31, 2012.
9
Wilshire Bancorp Inc. – 4Q 2012 Results
January 23, 2013
Page 10
CONFERENCE CALL
Management will host its quarterly conference call on January 24, 2013, at 10:00 a.m. PT (1:00 p.m. ET). Investment professionals are invited to participate in the call by dialing 800-260-8140 (domestic number) or 617-614-3672 (international number) and entering passcode #50622068.
COMPANY INFORMATION
Headquartered in Los Angeles, Wilshire State Bank operates 24 branch offices in California, Texas, New Jersey and New York, and eight loan production offices in Dallas and Houston, TX, Atlanta, GA, Aurora, CO, Annandale, VA, Fort Lee, NJ, Newark, CA, and Bellevue, WA, 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. The Company’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
This press release contains statements that we believe are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. Statements concerning future performance, events, financial condition, results of operations, plans 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. You should not place undue reliance on forward-looking statements, as they are subject to risks and uncertainties, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K. Specific factors that could cause future results to differ materially from historical performance and these forward-looking statements include, but are not limited to, (1) loan production and sales, (2) credit quality, (3) the ability to expand net interest margin, (4) the ability to continue to attract low-cost deposits, (5) success of expansion efforts, (6) competition in the marketplace, (7) political developments, war or other hostilities, (8) changes in the interest rate environment, (9) the ability of our borrowers to repay their loans, (10) the ability to maintain capital requirements and adequate sources of liquidity, (11) effects of or changes in accounting policies, (12) legislative or regulatory changes or actions, (13) the ability to attract and retain key personnel, (14) the ability to receive dividends from our subsidiaries, (15) the ability to secure confidential information through the use of computer systems and telecommunications networks, (16) weakening in the economy, specifically the real estate market, either nationally or in the states in which we do business, and (17) general economic conditions. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes included in the Company’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, the Company 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 the Company with the Securities and Exchange Commission.
10
Wilshire Bancorp Inc. – 4Q 2012 Results
January 23, 2013
Page 11
CONSOLIDATED BALANCE SHEET | | | | | | | | | | |
(Dollars In Thousands) (Unaudited) | | December 31, | | September 30, | | Three Months | | December 31, | | Twelve Months |
| | 2012 | | 2012 | | % Change | | 2011 | | % Change |
ASSETS: | | | | | | | | | | |
Cash and Due from Banks | | $ | 118,495 | | $ | 113,258 | | 5% | | $ | 155,245 | | -24% |
Federal Funds Sold and Other Cash Equivalents | | 55,005 | | 30,005 | | 83% | | 170,005 | | -68% |
Total Cash and Cash Equivalents | | 173,500 | | 143,263 | | 21% | | 325,250 | | -47% |
| | | | | | | | | | |
Investment Securities Available For Sale | | 332,504 | | 292,254 | | 14% | | 320,064 | | 4% |
Investment Securities Held To Maturity | | 50 | | 53 | | -6% | | 66 | | -24% |
Total Investment Securities | | 332,554 | | 292,307 | | 14% | | 320,130 | | 4% |
| | | | | | | | | | |
Loans Held For Sale | | 145,973 | | 140,109 | | 4% | | 53,814 | | 171% |
| | | | | | | | | | |
Real Estate Construction | | 20,254 | | 19,679 | | 3% | | 61,213 | | -67% |
Residential Real Estate | | 136,189 | | 130,706 | | 4% | | 98,262 | | 39% |
Commercial Real Estate | | 1,587,623 | | 1,533,396 | | 4% | | 1,478,254 | | 7% |
Commercial and Industrial | | 248,643 | | 250,560 | | -1% | | 274,878 | | -10% |
Consumer | | 13,658 | | 14,138 | | -3% | | 15,065 | | -9% |
Total Loans Receivable | | 2,006,367 | | 1,948,479 | | 3% | | 1,927,672 | | 4% |
Allowance For Loan Losses | | (63,285) | | (74,353) | | -15% | | (102,982) | | -39% |
Total Loans, Net of Allowance for Loan Losses | | 2,089,055 | | 2,014,235 | | 4% | | 1,878,504 | | 11% |
| | | | | | | | | | |
Accrued Interest Receivable | | 7,290 | | 7,570 | | -4% | | 8,118 | | -10% |
Due from Customers on Acceptances | | 54 | | 388 | | -86% | | 414 | | -87% |
Other Real Estate Owned | | 2,080 | | 2,277 | | -9% | | 8,221 | | -75% |
Premises and Equipment | | 11,630 | | 12,010 | | -3% | | 12,612 | | -8% |
Federal Home Loan Bank (FHLB) Stock, at Cost | | 12,090 | | 13,327 | | -9% | | 15,523 | | -22% |
Cash Surrender Value of Life Insurance | | 21,213 | | 20,735 | | 2% | | 19,888 | | 7% |
Investment in affordable housing partnerships | | 39,154 | | 40,048 | | -2% | | 37,676 | | 4% |
Deferred Income Taxes | | 20,862 | | 21,337 | | -2% | | - | | 0% |
Servicing Assets | | 9,610 | | 9,645 | | 0% | | 8,798 | | 9% |
Goodwill | | 6,675 | | 6,675 | | 0% | | 6,675 | | 0% |
FDIC Indemnification Asset | | 5,446 | | 9,927 | | -45% | | 21,922 | | -75% |
Other Assets | | 19,650 | | 22,145 | | -11% | | 33,123 | | -41% |
TOTAL ASSETS | | $ | 2,750,863 | | $ | 2,615,889 | | 5% | | $ | 2,696,854 | | 2% |
| | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY: | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | |
Non-interest Bearing Demand Deposits | | $ | 586,003 | | $ | 538,291 | | 9% | | $ | 511,467 | | 15% |
Savings and Interest Checking | | 125,595 | | 124,397 | | 1% | | 123,051 | | 2% |
Money Market Deposits | | 640,266 | | 662,322 | | -3% | | 572,452 | | 12% |
Time Deposits in denomination of $100,000 or more | | 573,773 | | 594,500 | | -3% | | 647,537 | | -11% |
Other Time Deposits | | 241,172 | | 255,342 | | -6% | | 347,802 | | -31% |
Total Deposits | | 2,166,809 | | 2,174,852 | | 0% | | 2,202,309 | | -2% |
| | | | | | | | | | |
FHLB Borrowings | | 150,000 | | - | | 0% | | 60,000 | | 150% |
Acceptance Outstanding | | 54 | | 388 | | -86% | | 414 | | -87% |
Junior Subordinated Debentures | | 61,857 | | 77,321 | | -20% | | 87,321 | | -29% |
Accrued Interest Payable | | 2,037 | | 2,465 | | -17% | | 3,281 | | -38% |
Other Liabilities | | 27,689 | | 32,095 | | -14% | | 33,947 | | -18% |
Total Liabilities | | 2,408,446 | | 2,287,121 | | 5% | | 2,387,272 | | 1% |
| | | | | | | | | | |
SHAREHOLDERS’ EQUITY: | | | | | | | | | | |
Preferred Stock | | - | | - | | 0% | | 61,000 | | -100% |
Common Stock | | 164,790 | | 164,649 | | 0% | | 164,711 | | 0% |
Retained Earnings | | 170,816 | | 155,606 | | 10% | | 77,110 | | 122% |
Accumulated Other Comprehensive Income | | 6,811 | | 8,513 | | -20% | | 6,761 | | 1% |
Total Shareholders’ Equity | | 342,417 | | 328,768 | | 4% | | 309,582 | | 11% |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | | $ | 2,750,863 | | $ | 2,615,889 | | 5% | | $ | 2,696,854 | | 2% |
(continued)
11
Wilshire Bancorp Inc. – 4Q 2012 Results
January 23, 2013
Page 12
CONSOLIDATED STATEMENT OF OPERATIONS | | | | | | | | | | |
(Dollars In Thousands, Except Per Share Data) (Unaudited) | | | | | | | | | | |
| | Quarter Ended | | Three Mths | | Quarter Ended | | Twelve Mths |
| | December 31, 2012 | | September 30, 2012 | | % Change | | December 31, 2011 | | % Change |
| | | | | | | | | | |
INTEREST INCOME | | | | | | | | | | |
Interest and Fees on Loans | | $ | 27,472 | | $ | 27,966 | | -2% | | $ | 28,512 | | -4% |
Interest on Investment Securities | | 1,596 | | 1,651 | | 0% | | 1,387 | | 19% |
Interest on Federal Funds Sold | | 155 | | 79 | | 32% | | 486 | | -79% |
Total Interest Income | | 29,223 | | 29,696 | | -2% | | 30,385 | | -4% |
| | | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | |
Deposits | | 3,176 | | 3,575 | | -11% | | 4,307 | | -26% |
FHLB Advances and Other Borrowings | | 420 | | 529 | | -21% | | 857 | | -51% |
Total Interest Expense | | 3,596 | | 4,104 | | -12% | | 5,164 | | -30% |
| | | | | | | | | | |
Net Interest Income Before (Credit) Provision for Losses on Loans and Loan Commitments | | 25,627 | | 25,592 | | 0% | | 25,221 | | 2% |
(Credit) Provision for Losses on Loans and Loan Commitments | | (12,000) | | (12,000) | | 0% | | 1,500 | | N/A |
| | | | | | | | | | |
Net Interest Income After (Credit) Provision for Losses on Loans and Loan Commitments | | 37,627 | | 37,592 | | 0% | | 23,721 | | 59% |
| | | | | | | | | | |
NONINTEREST INCOME | | | | | | | | | | |
Service Charges on Deposits | | 3,051 | | 3,157 | | -3% | | 3,152 | | -3% |
Gain on Sales of Loans, Net | | 1,159 | | 1,222 | | -5% | | 367 | | 216% |
Gain on Sale/Call of Investment Securities | | - | | - | | 0% | | 4 | | -100% |
Other | | 2,529 | | 2,231 | | 13% | | 2,234 | | 13% |
Total Noninterest Income | | 6,739 | | 6,610 | | 2% | | 5,757 | | 17% |
| | | | | | | | | | |
NONINTEREST EXPENSES | | | | | | | | | | |
Salaries and Employee Benefits | | 7,920 | | 9,355 | | -15% | | 7,144 | | 11% |
FDIC Indemnification Impairment | | 3,900 | | 2,000 | | 95% | | - | | 0% |
Occupancy & Equipment | | 2,054 | | 1,930 | | 6% | | 1,894 | | 8% |
Data Processing | | 688 | | 680 | | 1% | | 697 | | -1% |
Other | | 6,179 | | 4,377 | | 41% | | 6,504 | | -5% |
Total Noninterest Expenses | | 20,741 | | 18,342 | | 13% | | 16,239 | | 28% |
| | | | | | | | | | |
Income Before Income Taxes | | 23,625 | | 25,860 | | -9% | | 13,239 | | 78% |
Income Taxes Provision (Benefit) | | 8,415 | | (12,609) | | N/A | | 6,503 | | 29% |
NET INCOME | | $ | 15,210 | | $ | 38,469 | | -60% | | $ | 6,736 | | 126% |
| | | | | | | | | | |
Preferred Stock Cash Dividend | | - | | - | | 0% | | (777) | | -100% |
Accretion of Preferred Stock Discount | | - | | - | | 0% | | (141) | | -100% |
Total Preferred Stock Related Adjustment | | - | | - | | 0% | | (918) | | -100% |
| | | | | | | | | | |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | | $ | 15,210 | | $ | 38,469 | | -60% | | $ | 5,818 | | 161% |
| | | | | | | | | | |
PER COMMON SHARE INFORMATION: | | | | | | | | | | |
Basic Income Per Common Share | | $ | 0.21 | | $ | 0.54 | | -60% | | $ | 0.08 | | 161% |
Diluted Income Per Common Share | | $ | 0.21 | | $ | 0.54 | | -60% | | $ | 0.08 | | 161% |
| | | | | | | | | | |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | | | | |
Basic | | 71,294,573 | | 71,290,881 | | | | 71,291,416 | | |
Diluted | | 71,421,836 | | 71,420,567 | | | | 71,309,985 | | |
(continued)
12
Wilshire Bancorp Inc. – 4Q 2012 Results
January 23, 2013
Page 13
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
| | Year Ended | | Twelve Mths | |
| | December 31, 2012 | | December 31, 2011 | | % Change | |
| | | | | | | |
INTEREST INCOME | | | | | | | |
Interest and Fees on Loans | | $ | 109,367 | | $ | 121,707 | | -10% | |
Interest on Investment Securities | | 6,166 | | 7,177 | | -11% | |
Interest on Federal Funds Sold | | 1,424 | | 1,080 | | 12% | |
Total Interest Income | | 116,957 | | 129,964 | | -10% | |
| | | | | | | |
INTEREST EXPENSE | | | | | | | |
Deposits | | 15,021 | | 18,541 | | -19% | |
FHLB Advances and Other Borrowings | | 2,034 | | 4,048 | | -50% | |
Total Interest Expense | | 17,055 | | 22,589 | | -24% | |
| | | | | | | |
Net Interest Income Before (Credit) Provision for Losses on Loans and Loan Commitments | | 99,902 | | 107,375 | | -7% | |
(Credit) Provision for Losses on Loans and Loan Commitments | | (34,000) | | 59,100 | | N/A | |
| | | | | | | |
Net Interest Income After (Credit) Provision for Losses on Loans and Loan Commitments | | 133,902 | | 48,275 | | 177% | |
| | | | | | | |
NONINTEREST INCOME | | | | | | | |
Service Charges on Deposits | | 12,672 | | 12,570 | | 1% | |
Gain on Sales of Loans, Net | | 6,393 | | 2,102 | | 204% | |
Gain on Sale/Call of Investment Securities | | 3 | | 99 | | -97% | |
Other | | 9,181 | | 9,034 | | 2% | |
Total Noninterest Income | | 28,249 | | 23,805 | | 19% | |
| | | | | | | |
NONINTEREST EXPENSES | | | | | | | |
Salaries and Employee Benefits | | 34,475 | | 28,540 | | 21% | |
FDIC Indemnification Impairment | | 7,900 | | - | | 0% | |
Occupancy & Equipment | | 7,875 | | 7,826 | | 1% | |
Data Processing | | 2,817 | | 2,892 | | -3% | |
Other | | 21,112 | | 29,527 | | -28% | |
Total Noninterest Expenses | | 74,179 | | 68,785 | | 8% | |
| | | | | | | |
Income Before Income Taxes | | 87,972 | | 3,295 | | 2570% | |
Income Taxes (Benefit) Provision | | (4,333) | | 33,625 | | N/A | |
NET INCOME (LOSS) | | $ | 92,305 | | $ | (30,330) | | N/A | |
| | | | | | | |
Preferred Stock Cash Dividend | | (830) | | (3,108) | | -73% | |
Accretion of Preferred Stock Discount | | (1,158) | | (550) | | 111% | |
One-time Adjustment From Repurchase of Preferred Stock | | 3,389 | | - | | 0% | |
Total Preferred Stock Related Adjustment | | 1,401 | | (3,658) | | N/A | |
| | | | | | | |
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS | | $ | 93,706 | | $ | (33,988) | | N/A | |
| | | | | | | |
PER COMMON SHARE INFORMATION: | | | | | | | |
Basic Income (Loss) Per Common Share | | $ | 1.31 | | $ | (0.61) | | N/A | |
Diluted Income (Loss) Per Common Share | | $ | 1.31 | | $ | (0.61) | | N/A | |
| | | | | | | |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | |
Basic | | 71,288,484 | | 55,710,377 | | | |
Diluted | | 71,375,150 | | 55,710,377 | | | |
(continued)
13
Wilshire Bancorp Inc. – 4Q 2012 Results
January 23, 2013
Page 14
SUMMARY OF FINANCIAL DATA
(Dollars In Thousands, Except Per Share Data) (Unaudited)
| | Quarter Ended | | | |
AVERAGE BALANCES | | December 31, 2012 | | | | September 30, 2012 | | | | December 31, 2011 | | | |
| | | | | | | | | | | | | |
Average Assets | | $ | 2,609,509 | | | | $ | 2,579,203 | | | | $ | 2,678,357 | | | |
Average Equity | | 334,380 | | | | 297,725 | | | | 308,948 | | | |
Average Net Loans | | 1,984,434 | | | | 1,951,126 | | | | 1,868,385 | | | |
Average Deposits | | 2,153,976 | | | | 2,162,430 | | | | 2,145,128 | | | |
Average Time Deposits in denomination of $100,000 or more | | 585,134 | | | | 600,204 | | | | 655,022 | | | |
Average FHLB & Other Borrowings | | 14,130 | | | | - | | | | 105,163 | | | |
Average Interest Earning Assets | | 2,386,128 | | | | 2,370,619 | | | | 2,439,374 | | | |
| | | | | | | | | | | | | |
| | Year Ended | | | |
AVERAGE BALANCES | | December 31, 2012 | | | | | | | | December 31, 2011 | | | |
| | | | | | | | | | | | | |
Average Assets | | $ | 2,600,273 | | | | | | | | $ | 2,758,788 | | | |
Average Equity | | 305,833 | | | | | | | | 264,666 | | | |
Average Net Loans | | 1,917,423 | | | | | | | | 2,020,036 | | | |
Average Deposits | | 2,166,303 | | | | | | | | 2,202,445 | | | |
Average Time Deposits in denomination of $100,000 or more | | 611,922 | | | | | | | | 658,862 | | | |
Average FHLB & Other Borrowings | | 8,806 | | | | | | | | 163,227 | | | |
Average Interest Earning Assets | | 2,386,037 | | | | | | | | 2,498,025 | | | |
| | | | | | | | | | | | | |
| | Quarter Ended | | | |
PROFITABILITY | | December 31, 2012 | | | | September 30, 2012 | | | | December 31, 2011 | | | |
| | | | | | | | | | | | | |
Annualized Return on Average Assets | | 2.33% | | | | 5.97% | | | | 1.01% | | | |
Annualized Return on Average Equity | | 18.19% | | | | 51.68% | | | | 8.72% | | | |
Efficiency Ratio | | 64.08% | | | | 56.96% | | | | 52.42% | | | |
Annualized Operating Expense/Average Assets | | 3.18% | | | | 2.84% | | | | 2.43% | | | |
Annualized Net Interest Margin | | 4.33% | | | | 4.35% | | | | 4.17% | | | |
| | | | | | | | | | | | | |
| | Year Ended | | | |
PROFITABILITY | | December 31, 2012 | | | | | | | | December 31, 2011 | | | |
| | | | | | | | | | | | | |
Annualized Return on Average Assets | | 3.55% | | | | | | | | -1.10% | | | |
Annualized Return on Average Equity | | 30.18% | | | | | | | | -11.46% | | | |
Efficiency Ratio | | 57.88% | | | | | | | | 52.44% | | | |
Annualized Operating Expense/Average Assets | | 2.85% | | | | | | | | 2.49% | | | |
Annualized Net Interest Margin | | 4.22% | | | | | | | | 4.34% | | | |
| | | | | | | | | | | | | |
| | As Of |
DEPOSIT COMPOSITION | | December 31, 2012 | | Cost of
Funds | | September 30, 2012 | | Cost of
Funds | | December 31, 2011 | | Cost of
Funds | |
| | | | | | | | | | | | | |
Noninterest Bearing Demand Deposits | | 27.0% | | 0.00% | | 24.8% | | 0.00% | | 23.2% | | 0.00% | |
Savings & Interest Checking | | 5.8% | | 1.66% | | 5.7% | | 1.78% | | 5.6% | | 2.24% | |
Money Market Deposits | | 29.5% | | 0.66% | | 30.5% | | 0.76% | | 26.0% | | 0.85% | |
Time Deposits of $100,000 or More | | 26.5% | | 0.72% | | 27.3% | | 0.78% | | 29.4% | | 0.93% | |
Other Time Deposits | | 11.1% | | 0.84% | | 11.7% | | 0.92% | | 15.8% | | 1.07% | |
Total Deposits | | 100.0% | | 0.59% | | 100.0% | | 0.66% | | 100.0% | | 0.80% | |
| | | | | | | | | | | | | |
| | As Of | | | |
CAPITAL RATIOS | | December 31, 2012 | | | | September 30, 2012 | | | | December 31, 2011 | | | |
| | | | | | | | | | | | | |
Tier 1 Leverage Ratio | | 14.87% | | | | 14.96% | | | | 13.86% | | | |
Tier 1 Risk-Based Capital Ratio | | 18.47% | | | | 19.33% | | | | 19.59% | | | |
Total Risk-Based Capital Ratio | | 19.74% | | | | 20.61% | | | | 20.89% | | | |
Total Shareholders’ Equity | | $ | 342,417 | | | | $ | 328,768 | | | | $ | 309,582 | | | |
Book Value Per Common Share | | $ | 4.80 | | | | $ | 4.61 | | | | $ | 3.49 | | | |
Tangible Common Equity Per Common Share * | | $ | 4.69 | | | | $ | 4.50 | | | | $ | 3.38 | | | |
Tangible Common Equity to Tangible Assets ** | | 12.20% | | | | 12.31% | | | | 8.95% | | | |
* Tangible common equity excludes goodwill, other intangible assets, and TARP preferred stock
** Tangible assets excludes goodwill and intangible assets
(continued)
14
Wilshire Bancorp Inc. – 4Q 2012 Results
January 23, 2013
Page 15
ALLOWANCE FOR LOAN LOSSES | | | | | | | | | |
(Dollars In Thousands) (Unaudited) | | Quarter Ended |
| | | | | | | | | | | |
| | December 31, 2012 | | September 30, 2012 | | June 30, 2012 | | March 31, 2012 | | December 31, 2011 | |
| | | | | | | | | | | |
Balance at Beginning of Period | | $ | 74,353 | | $ | 89,134 | | $ | 99,826 | | $ | 102,982 | | $ | 105,306 | |
(Credit) Provision for Losses on Loans | | (10,600) | | (12,000) | | (9,000) | | - | | 1,500 | |
Recoveries on Loans Previously Charged-off | | 2,532 | | 346 | | 1,750 | | 1,208 | | 243 | |
Less Charge-offs | | (3,000) | | (3,127) | | (3,442) | | (4,364) | | (4,067) | |
Balance at End of Period | | $ | 63,285 | | $ | 74,353 | | $ | 89,134 | | $ | 99,826 | | $ | 102,982 | |
| | | | | | | | | | | |
Net Loan Charge-offs/Average Total Loans | | 0.02% | | 0.14% | | 0.09% | | 0.17% | | 0.20% | |
Charge-offs/Average Total Loans | | 0.15% | | 0.16% | | 0.18% | | 0.24% | | 0.22% | |
Allowance for Loan Losses/Gross Loans * | | 3.15% | | 3.81% | | 4.54% | | 5.24% | | 5.33% | |
Allowance for Loan Losses/Legacy Wilshire Loans * | | 3.33% | | 4.08% | | 4.89% | | 5.69% | | 5.81% | |
Allowance for Loan Losses/Non-accrual Loans | | 226.40% | | 191.23% | | 214.86% | | 195.77% | | 234.95% | |
Allowance for Loan Losses/Legacy Non-accrual Loans | | 274.93% | | 220.67% | | 254.70% | | 281.34% | | 345.38% | |
Allowance for Loan Losses/Non-performing Loans | | 226.40% | | 191.23% | | 210.18% | | 192.25% | | 234.95% | |
Allowance for Loan Losses/Legacy Non-performing Loans | | 274.93% | | 220.67% | | 248.15% | | 274.13% | | 345.38% | |
Allowance for Loan Losses/Non-performing Assets | | 210.73% | | 180.65% | | 190.62% | | 184.20% | | 197.84% | |
Allowance for Loan Losses/Legacy Non-performing Assets | | 265.38% | | 214.15% | | 238.90% | | 258.04% | | 285.36% | |
| | | | | | | | | | | |
* Excluding held-for-sale loans | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
NON-PERFORMING ASSETS | | | | | | | | | | | |
(Dollars In Thousands, Net of SBA Guaranteed Portions) | | Quarter Ended |
(Unaudited) | | December 31, 2012 | | September 30, 2012 | | June 30, 2012 | | March 31, 2012 | | December 31, 2011 | |
Non-accrual Loans: | | | | | | | | | | | |
Non-covered | | $ | 23,019 | | $ | 33,694 | | $ | 34,996 | | $ | 35,482 | | $ | 29,817 | |
Covered | | 4,934 | | 5,188 | | 6,489 | | 15,509 | | 14,015 | |
Total | | 27,953 | | 38,882 | | 41,485 | | 50,991 | | 43,832 | |
| | | | | | | | | | | |
Loans 90 days or more past due and still accruing: | | | | | | | | | | | |
Non-covered | | - | | - | | 923 | | 933 | | - | |
Covered | | - | | - | | - | | - | | - | |
Total | | - | | - | | 923 | | 933 | | - | |
| | | | | | | | | | | |
Total Non-performing Loans: | | | | | | | | | | | |
Non-covered | | 23,019 | | 33,694 | | 35,919 | | 36,415 | | 29,817 | |
Covered | | 4,934 | | 5,188 | | 6,489 | | 15,509 | | 14,015 | |
Total | | 27,953 | | 38,882 | | 42,408 | | 51,924 | | 43,832 | |
| | | | | | | | | | | |
OREO and Repossessed Vehicles: | | | | | | | | | | | |
Non-covered | | 828 | | 1,026 | | 1,391 | | 2,271 | | 6,271 | |
Covered | | 1,251 | | 1,251 | | 2,960 | | - | | 1,950 | |
Total | | 2,079 | | 2,277 | | 4,351 | | 2,271 | | 8,221 | |
| | | | | | | | | | | |
Total Non-performing Assets: | | | | | | | | | | | |
Non-covered | | 23,847 | | 34,720 | | 37,310 | | 38,686 | | 36,088 | |
Covered | | 6,185 | | 6,439 | | 9,449 | | 15,509 | | 15,965 | |
Total | | $ | 30,032 | | $ | 41,159 | | $ | 46,759 | | $ | 54,195 | | $ | 52,053 | |
| | | | | | | | | | | |
Total Non-performing Loans/Gross Loans | | 1.30% | | 1.86% | | 2.09% | | 2.66% | | 2.21% | |
Total Legacy Non-performing Loans/Legacy Gross Loans | | 1.13% | | 1.72% | | 1.90% | | 2.03% | | 1.64% | |
| | | | | | | | | | | |
Total Non-performing Assets/Total Assets | | 1.09% | | 1.57% | | 1.80% | | 2.04% | | 1.93% | |
Total Legacy Non-performing Assets/Total Assets | | 0.87% | | 1.33% | | 1.44% | | 1.45% | | 1.34% | |
(continued)
15
Wilshire Bancorp Inc. – 4Q 2012 Results
January 23, 2013
Page 16
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS | | Quarter Ended | | | | | |
(Dollars In Thousands) (Unaudited) | | December 31, 2012 | | September 30, 2012 | | June 30, 2012 | | March 31, 2012 | | December 31, 2011 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Balance at beginning of period | | $ 2,423 | | $ 2,423 | | $ 3,423 | | $ 3,423 | | $ 3,423 | |
| | | | | | | | | | | |
Credit for losses on off-balance sheet items | | (1,400) | | - | | (1,000) | | - | | - | |
| | | | | | | | | | | |
Balance at end of period | | $ 1,023 | | $ 2,423 | | $ 2,423 | | $ 3,423 | | $ 3,423 | |
| | Year Ended | | | | | | | |
| | December 31, 2012 | | December 31, 2011 | | | | | | | |
| | | | | | | | | | | |
Balance at beginning of period | | $ 3,423 | | $ 3,926 | | | | | | | |
| | | | | | | | | | | |
Credit for losses on off-balance sheet items | | (2,400) | | (503) | | | | | | | |
| | | | | | | | | | | |
Balance at end of period | | $ 1,023 | | $ 3,423 | | | | | | | |
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES:
TANGIBLE COMMON EQUITY AND TANGIBLE ASSETS
(Dollars In Thousands, Except Share Data) (Unaudited) | | Quarter Ended | |
| | December 31, 2012 | | September 30, 2012 | | December 31, 2011 | |
| | | | | | | |
Total shareholders’ equity | | $ | 342,417 | | $ | 328,768 | | $ | 309,582 | |
Preferred stock, net of discount | | - | | - | | (61,000 | ) |
Goodwill and other intangible assets, net | | (7,712) | | (7,783) | | (7,995 | ) |
Tangible common equity | | $ | 334,705 | | $ | 320,985 | | $ | 240,587 | |
| | | | | | | |
Total assets | | $ | 2,750,863 | | $ | 2,615,889 | | $ | 2,696,854 | |
Goodwill and other intangible assets, net | | (7,712) | | (7,783) | | (7,995 | ) |
Tangible assets | | $ | 2,743,151 | | $ | 2,608,106 | | $ | 2,688,859 | |
| | | | | | | |
Common shares outstanding | | 71,295,144 | | 71,293,394 | | 71,282,518 | |
(continued)
16
Wilshire Bancorp Inc. – 4Q 2012 Results
January 23, 2013
Page 17
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
| | For the Quarter Ended | |
| | December 31, 2012 | | September 30, 2012 | | December 31, 2011 | |
| | | | | | | | | | | | | | | | | | | |
| | Average | | Interest | | Average | | Average | | Interest | | Average | | Average | | Interest | | Average | |
| | | | | | | | | | | | | | | | | | | |
| | Balance | | Income/ | | Yield/ | | Balance | | Income/ | | Yield/ | | Balance | | Income/ | | Yield/ | |
| | | | | | | | | | | | | | | | | | | |
INTEREST EARNING ASSETS | | | | Expense | | Rate | | | | Expense | | Rate | | | | Expense | | Rate | |
| | | | | | | | | | | | | | | | | | | |
LOANS: | | | | | | | | | | | | | | | | | | | |
Real Estate Loans | | $ 1,749,807 | | $ 22,753 | | 5.20% | | $ 1,727,223 | | $ 23,530 | | 5.45% | | $ 1,691,650 | | $ 24,012 | | 5.68% | |
Commercial Loans | | 300,138 | | 3,703 | | 4.94% | | 303,338 | | 3,572 | | 4.71% | | 270,425 | | 3,446 | | 5.10% | |
Consumer Loans | | 13,708 | | 89 | | 2.60% | | 13,899 | | 87 | | 2.50% | | 15,406 | | 115 | | 2.99% | |
Total Gross Loans | | 2,063,653 | | 26,545 | | 5.15% | | 2,044,460 | | 27,189 | | 5.32% | | 1,977,481 | | 27,573 | | 5.58% | |
Loan Fees toward Yield | | | | 927 | | | | | | 777 | | | | | | 939 | | | |
Allowance for Loan Losses & Unearned Income | | (79,219) | | | | | | (93,334) | | | | | | (109,096) | | | | | |
Net Loans | | 1,984,434 | | 27,472 | | 5.54% | | 1,951,126 | | 27,966 | | 5.73% | | 1,868,385 | | 28,512 | | 6.10% | |
| | | | | | | | | | | | | | | | | | | |
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS: | | | | | | | | | | | | | | | | | | | |
Investment Securities* | | 297,205 | | 1,596 | | 2.42% | | 294,535 | | 1,651 | | 2.51% | | 339,302 | | 1,387 | | 1.90% | |
Federal Funds Sold | | 104,489 | | 155 | | 0.59% | | 124,958 | | 79 | | 0.25% | | 231,687 | | 486 | | 0.84% | |
Total Investment Securities and Other Earning Assets | | 401,694 | | 1,751 | | 1.94% | | 419,493 | | 1,730 | | 1.84% | | 570,989 | | 1,873 | | 1.47% | |
| | | | | | | | | | | | | | | | | | | |
TOTAL INTEREST-EARNING ASSETS | | $ 2,386,128 | | $ 29,223 | | 4.93% | | $ 2,370,619 | | $ 29,696 | | 5.04% | | $ 2,439,374 | | $ 30,385 | | 5.02% | |
| | | | | | | | | | | | | | | | | | | |
Total Non-Interest Earning Assets | | 223,381 | | | | | | 208,584 | | | | | | 238,983 | | | | | |
TOTAL ASSETS | | $ 2,609,509 | | | | | | $ 2,579,203 | | | | | | $ 2,678,357 | | | | | |
| | | | | | | | | | | | | | | | | | | |
INTEREST BEARING LIABILITIES | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
INTEREST-BEARING DEPOSITS: | | | | | | | | | | | | | | | | | | | |
Money Market | | $ 653,020 | | $ 1,072 | | 0.66% | | $ 637,082 | | $ 1,206 | | 0.76% | | $ 546,972 | | $ 1,163 | | 0.85% | |
NOW | | 27,317 | | 14 | | 0.21% | | 27,310 | | 16 | | 0.23% | | 24,365 | | 20 | | 0.33% | |
Savings | | 99,371 | | 511 | | 2.06% | | 100,299 | | 551 | | 2.20% | | 94,910 | | 649 | | 2.74% | |
Time Deposits of $100,000 or More | | 585,134 | | 1,059 | | 0.72% | | 600,204 | | 1,169 | | 0.78% | | 655,022 | | 1,528 | | 0.93% | |
Other Time Deposits | | 248,237 | | 520 | | 0.84% | | 274,366 | | 633 | | 0.92% | | 355,587 | | 947 | | 1.07% | |
Total Interest Bearing Deposits | | 1,613,079 | | 3,176 | | 0.79% | | 1,639,261 | | 3,575 | | 0.87% | | 1,676,856 | | 4,307 | | 1.03% | |
| | | | | | | | | | | | | | | | | | | |
BORROWINGS: | | | | | | | | | | | | | | | | | | | |
FHLB Advances and Other Borrowings | | 14,130 | | 10 | | 0.28% | | - | | - | | 0.00% | | 105,163 | | 340 | | 1.29% | |
Junior Subordinated Debentures | | 74,295 | | 410 | | 2.21% | | 86,669 | | 529 | | 2.44% | | 87,321 | | 517 | | 2.37% | |
Total Borrowings | | 88,425 | | 420 | | 1.90% | | 86,669 | | 529 | | 2.44% | | 192,484 | | 857 | | 1.78% | |
| | | | | | | | | | | | | | | | | | | |
TOTAL INTEREST BEARING LIABILITIES | | $ 1,701,504 | | $ 3,596 | | 0.85% | | $ 1,725,930 | | $ 4,104 | | 0.95% | | $ 1,869,340 | | $ 5,164 | | 1.11% | |
| | | | | | | | | | | | | | | | | | | |
Non-Interest Bearing Deposits | | 540,897 | | | | | | 523,169 | | | | | | 468,272 | | | | | |
Other Liabilities | | 32,728 | | | | | | 32,379 | | | | | | 31,797 | | | | | |
Shareholders’ Equity | | 334,380 | | | | | | 297,725 | | | | | | 308,948 | | | | | |
TOTAL LIABILITIES AND EQUITY | | $ 2,609,509 | | | | | | $ 2,579,203 | | | | | | $ 2,678,357 | | | | | |
| | | | | | | | | | | | | | | | | | | |
NET INTEREST INCOME | | | | $ 25,627 | | | | | | $ 25,592 | | | | | | $ 25,221 | | | |
| | | | | | | | | | | | | | | | | | | |
NET INTEREST SPREAD | | | | | | 4.09% | | | | | | 4.09% | | | | | | 3.91% | |
| | | | | | | | | | | | | | | | | | | |
NET INTEREST MARGIN | | | | | | 4.33% | | | | | | 4.35% | | | | | | 4.17% | |
* Tax equivalent ratios for investment securities | | (continued) |
17
Wilshire Bancorp Inc. – 4Q 2012 Results
January 23, 2013
Page 18
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
| | For the Year Ended | |
| | December 31, 2012 | | December 31, 2011 | |
| | | | | | | | | | | | | |
| | Average | | Interest | | Average | | Average | | Interest | | Average | |
| | Balance | | Income/ | | Yield/ | | Balance | | Income/ | | Yield/ | |
INTEREST EARNING ASSETS | | | | Expense | | Rate | | | | Expense | | Rate | |
| | | | | | | | | | | | | |
LOANS: | | | | | | | | | | | | | |
Real Estate Loans | | $ 1,703,516 | | $ 91,854 | | 5.39% | | $ 1,826,421 | | $ 102,175 | | 5.59% | |
Commercial Loans | | 295,252 | | 14,329 | | 4.85% | | 295,932 | | 15,683 | | 5.30% | |
Consumer Loans | | 14,653 | | 381 | | 2.60% | | 15,289 | | 442 | | 2.89% | |
Total Gross Loans | | 2,013,421 | | 106,564 | | 5.29% | | 2,137,642 | | 118,300 | | 5.53% | |
Loan Fees toward Yield | | | | 2,803 | | | | | | 3,407 | | | |
Allowance for Loan Losses & Unearned Income | | (95,998) | | | | | | (117,606) | | | | | |
Net Loans | | 1,917,423 | | 109,367 | | 5.70% | | 2,020,036 | | 121,707 | | 6.03% | |
| | | | | | | | | | | | | |
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS: | | | | | | | | | | | | | |
Investment Securities* | | 297,860 | | 6,166 | | 2.35% | | 328,280 | | 7,177 | | 2.47% | |
Federal Funds Sold | | 170,754 | | 1,424 | | 0.83% | | 149,709 | | 1,080 | | 0.72% | |
Total Investment Securities and Other Earning Assets | | 468,614 | | 7,590 | | 1.80% | | 477,989 | | 8,257 | | 1.92% | |
| | | | | | | | | | | | | |
TOTAL INTEREST-EARNING ASSETS | | $ 2,386,037 | | $ 116,957 | | 4.94% | | $ 2,498,025 | | $ 129,964 | | 5.24% | |
| | | | | | | | | | | | | |
Total Non-Interest Earnings Assets | | 214,236 | | | | | | 260,763 | | | | | |
TOTAL ASSETS | | $ 2,600,273 | | | | | | $ 2,758,788 | | | | | |
| | | | | | | | | | | | | |
INTEREST BEARING LIABILITIES | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
INTEREST-BEARING DEPOSITS: | | | | | | | | | | | | | |
Money Market | | $ 621,638 | | $ 4,768 | | 0.77% | | $ 590,198 | | $ 5,291 | | 0.90% | |
NOW | | 26,154 | | 71 | | 0.27% | | 23,869 | | 84 | | 0.35% | |
Savings | | 100,740 | | 2,371 | | 2.35% | | 89,582 | | 2,487 | | 2.78% | |
Time Deposits of $100,000 or More | | 611,922 | | 4,968 | | 0.81% | | 658,862 | | 6,345 | | 0.96% | |
Other Time Deposits | | 295,305 | | 2,843 | | 0.96% | | 377,491 | | 4,334 | | 1.15% | |
Total Interest Bearing Deposits | | 1,655,759 | | 15,021 | | 0.91% | | 1,740,002 | | 18,541 | | 1.07% | |
| | | | | | | | | | | | | |
BORROWINGS: | | | | | | | | | | | | | |
FHLB Advances and Other Borrowings | | 8,806 | | 16 | | 0.18% | | 163,227 | | 2,057 | | 1.26% | |
Junior Subordinated Debentures | | 83,883 | | 2,018 | | 2.41% | | 87,321 | | 1,991 | | 2.28% | |
Total Borrowings | | 92,689 | | 2,034 | | 2.19% | | 250,548 | | 4,048 | | 1.62% | |
| | | | | | | | | | | | | |
TOTAL INTEREST BEARING LIABILITIES | | $ 1,748,448 | | $ 17,055 | | 0.98% | | $ 1,990,550 | | $ 22,589 | | 1.14% | |
| | | | | | | | | | | | | |
Non-Interest Bearing Deposits | | 510,544 | | | | | | 462,443 | | | | | |
Other Liabilities | | 35,448 | | | | | | 41,129 | | | | | |
Shareholders’ Equity | | 305,833 | | | | | | 264,666 | | | | | |
TOTAL LIABILITIES AND EQUITY | | $ 2,600,273 | | | | | | $ 2,758,788 | | | | | |
| | | | | | | | | | | | | |
NET INTEREST INCOME | | | | $ 99,902 | | | | | | $ 107,375 | | | |
| | | | | | | | | | | | | |
NET INTEREST SPREAD | | | | | | 3.96% | | | | | | 4.10% | |
| | | | | | | | | | | | | |
NET INTEREST MARGIN | | | | | | 4.22% | | | | | | 4.34% | |
* Tax equivalent ratios for investment securities
(concluded)
18
