Exhibit 99.1
WILSHIRE BANCORP, INC.
CONTACT:
Alex Ko, EVP & CFO, (213) 427-6560
www.wilshirebank.com | 
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NEWS RELEASE |
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Wilshire Bancorp Reports Net Income of $11.5 Million or
$0.16 Earnings per Share for Second Quarter 2013
LOS ANGELES, July 22, 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 $11.5 million, or $0.16 per diluted common share, for the quarter ended June 30, 2013. This compares to net income available to common shareholders of $22.1 million, or $0.31 per common share, for the same period of the prior year, and net income of $11.6 million, or $0.16 per common share, for the first quarter of 2013.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, “We delivered another strong performance in the second quarter that reflects the consistent earnings power of the Company. We generated an annualized return on assets of 1.67% and an annualized return on equity of 13.0%. In addition, pre-tax, pre-provision income for the second quarter of 2013 was $17.0 million, a 38% increase from $12.4 million for the second quarter of 2012. We saw a continuation of most of the trends we have experienced over the past several quarters, most notably low credit costs, slight compression in our net interest margin, stable expense levels and modest loan growth.”
“As we indicated at the beginning of 2013, one of our top priorities was to be more active in our deployment of excess capital to create additional value for our shareholders. Our actions in the second quarter of 2013 reflect our efforts to achieve this goal. We returned cash to shareholders through the implementation of a stock repurchase program and also reinstated our quarterly cash dividend. In addition, we announced two acquisitions — BankAsiana in the New York/New Jersey market and Saehan Bancorp in the Los Angeles market — that will expand our franchise and increase our earnings power in the years ahead. Following these actions, we expect to continue to be well capitalized and have the flexibility to continue returning capital to shareholders and reinvesting in our business,” said Mr. Yoo.
Q2 2013 Summary
· Net income available to common shareholders totaled $11.5 million or $0.16 per diluted common share
· Total revenue of $34.1 million, an increase of 4.0% from the second quarter of 2012
· Return on average assets of 1.67%; return on average equity of 12.95%
· Operating efficiency ratio of 50.1% for Q2 2013 compared to 50.5% for Q1 2013
· Loans receivable totaled $2.09 billion at June 30, 2013, an increase of 2.1% from $2.05 billion at March 31, 2013
· Continued improvement in credit quality resulted in no provision for losses on loans and loan commitments for Q2 2013
· Declared cash dividend of $0.03 per common share
· Repurchased 651,412 shares of common stock as part of the Company’s stock repurchase program
· Announced acquisitions of BankAsiana in New Jersey and Saehan Bancorp in Los Angeles
STATEMENT OF OPERATIONS
Pre-Tax, Pre-Provision Income
Pre-tax, pre-provision income (PTPP) was $17.0 million for the second quarter of 2013, compared with $12.4 million in the second quarter of 2012, and $17.0 million in the first quarter of 2013. PTPP is a Non-GAAP measure of financial performance. Please refer to the “Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures” table at the end of this press release for a reconciliation of PTPP to net income.
Net Interest Income and Margin
Net interest income before credit for losses on loans and loan commitments totaled $25.8 million for the second quarter of 2013, an increase of 6.2% from $24.2 million for the second quarter of 2012, and increased from $25.6 million in the first quarter of 2013. The increase from the prior periods was primarily due to a reduction in interest expense on deposits.
Net interest margin was 4.06% for the second quarter of 2013, compared to 4.13% in the second quarter of 2012, and 4.09% for the first quarter of 2013. The decrease in net interest margin from the first quarter of 2013 was primarily due to lower yields on newly originated loans, partially offset by a reduction in the cost of deposits.
Loan yields decreased to 5.10% for the second quarter of 2013 from 5.21% for the first quarter of 2013 due to new loans that were originated at rates that were lower than that of the existing portfolio, as a result of the low interest rate environment and competitive landscape within the banking industry. The total cost of deposits declined to 0.51% for the second quarter of 2013, down from 0.53% for the first quarter of 2013. The reduction in the total cost of deposits is primarily attributable to an increase in non-interest bearing deposits as a percentage of total deposits.
Non-Interest Income
Total non-interest income was $8.3 million for the second quarter of 2013, compared to $8.5 million for the second quarter of 2012, and $8.7 million for the first quarter of 2013. The decrease from the prior quarter was primarily due to lower net gain on sales of loans during the second quarter of 2013.
The $3.1 million in net gains on sales of loans recognized in the second quarter of 2013 was substantially all gains from the sale of SBA loans. During the second quarter of 2013, the Company sold $30.6 million in SBA loans, an increase from $30.3 million during the first quarter of 2013.
Non-Interest Expense
Total non-interest expense was $17.1 million for the second quarter of 2013, compared with $20.4 million for the second quarter of 2012, and $17.3 million for the first quarter of 2013.
Total salaries and employee benefits expense was $9.5 million for the second quarter of 2013, compared with $9.0 million for the second quarter of 2012, and $8.8 million for the first quarter of 2013. The increase from the prior quarter was due to an increase in accrual for bonuses and company-wide salary increases that took effect in the second quarter of 2013.
Other non-interest expense for the second quarter of 2013 totaled $4.9 million, compared with $6.7 million in the second quarter of 2012, and $5.8 million for the first quarter of 2013. The decrease from the second quarter of 2012 was primarily attributable to a decline in legal fees and regulatory assessment fees. The decrease from the first quarter of 2013 was primarily attributable to a reduction in professional fees and expenses related to the Company’s bank owned life insurance plan.
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The Company’s operating efficiency ratio was 50.1% for the second quarter of 2013, compared with 62.2% for the second quarter of 2012 and 50.5% for the first quarter of 2013.
Tax Provision
For the second quarter of 2013, the Company recorded a provision for income taxes totaling $5.5 million, reflecting an effective tax rate of 32.1%. The effective tax rate is lower than historical rates primarily due to the generation of tax credits associated with the Company’s investment in affordable housing programs.
BALANCE SHEET
Total gross loans receivable, were $2.10 billion at June 30, 2013, compared to $2.06 billion at March 31, 2013. The increase in total gross loans receivable during the second quarter of 2013 was primarily due to a $23.4 million increase in the commercial and industrial portfolio and a $19.6 million increase in the real estate secured portfolio. Total cash and due from banks increased $75.7 million during the second quarter of 2013 to $162.6 million due to a large temporary increase of a customer’s business demand deposit account balance, a reduction in warehouse lending, and pay-down of investment securities. During the second quarter of 2013, the Company committed to fund two additional low income tax credit investments totaling $8.0 million.
The following table shows gross loans (excluding loan fees and allowance for loan losses) by loan type:
Loan Categories
| | Quarter Ended | |
(Dollars In Thousands) | | June 30, 2013 | | March 31, 2013 | | December 31, 2012 | | September 30, 2012 | | June 30, 2012 | |
| | | | | | | | | | | |
Construction | | $ | 36,371 | | $ | 34,030 | | $ | 20,928 | | $ | 20,311 | | $ | 27,030 | |
Real Estate Secured | | 1,715,567 | | 1,695,980 | | 1,692,273 | | 1,629,951 | | 1,622,786 | |
Commercial & Industrial | | 337,057 | | 313,645 | | 284,318 | | 288,585 | | 297,807 | |
Consumer | | 11,089 | | 11,684 | | 13,674 | | 14,153 | | 13,595 | |
Gross Loans Receivable * | | 2,100,084 | | 2,055,339 | | 2,011,193 | | 1,953,000 | | 1,961,218 | |
Held-For-Sale Loans | | 60,910 | | 134,129 | | 145,973 | | 140,109 | | 66,485 | |
Total Gross Loans * | | $ | 2,160,994 | | $ | 2,189,468 | | $ | 2,157,166 | | $ | 2,093,109 | | $ | 2,027,703 | |
* Gross loans receivable and total gross loans are not net of deferred fees and costs as is shown in the consolidated balance sheet presentation
The following table shows quarterly loan originations by loan type:
Loan Originations
| | Quarter Ended | |
(Dollars In Thousands) | | June 30, 2013 | | March 31, 2013 | | December 31, 2012 | | September 30, 2012 | | June 30, 2012 | |
| | | | | | | | | | | | | | | | | | | | | |
Real Estate Secured | | $ | 93,606 | | 48 | % | $ | 86,839 | | 45 | % | $ | 157,901 | | 60 | % | $ | 80,700 | | 39 | % | $ | 81,782 | | 33 | % |
Commercial & Industrial | | 40,927 | | 21 | % | 55,096 | | 29 | % | 34,059 | | 13 | % | 40,683 | | 19 | % | 50,469 | | 21 | % |
Consumer | | 75 | | 0 | % | 537 | | 0 | % | 3,083 | | 1 | % | 1,805 | | 1 | % | 304 | | 0 | % |
SBA | | 40,209 | | 21 | % | 27,379 | | 14 | % | 38,700 | | 15 | % | 27,457 | | 13 | % | 37,989 | | 16 | % |
Residential Mortgage | | 20,022 | | 10 | % | 22,831 | | 12 | % | 30,624 | | 11 | % | 58,589 | | 28 | % | 74,673 | | 30 | % |
Total Loan Originations | | $ | 194,839 | | 100 | % | $ | 192,682 | | 100 | % | $ | 264,367 | | 100 | % | $ | 209,234 | | 100 | % | $ | 245,217 | | 100 | % |
Originations for the second quarter of 2013 increased slightly to $194.8 million compared to the first quarter of 2013. Compared to originations for the quarter ended June 30, 2012, originations for the second quarter of 2013 declined largely due to the reduction in residential mortgage loans. During the second quarter of 2012 the Company had a large increase in warehouse loan originations.
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Total SBA loans held-for-sale at the end of the second quarter of 2013 totaled $59.7 million compared to $64.9 million at the end of the previous quarter. The decision to retain or sell SBA loan production is made on a quarter-to-quarter basis, depending on prevailing pricing in the secondary market and the Company’s liquidity needs. During the second quarter of 2013, the Company sold approximately $30.6 million in SBA loans compared to $30.3 million sold during the first quarter of 2013 and $25.1 million sold during the second quarter of 2012.
Total deposits were $2.18 billion at June 30, 2013, compared with $2.16 billion at March 31, 2013. Increases in non-interest bearing demand deposits and savings and interest checking deposits were partially offset by decreases in time deposits. At June 30, 2013, non-interest bearing demand deposits represented 28.6% of total deposits, compared with 23.6% at June 30, 2012.
CREDIT QUALITY
The Company has experienced improving credit trends for several quarters, most notably evidenced by decreases in criticized and classified loans. In light of the continued improvement in credit quality, the Company determined that no provision for losses on loans and loan commitments was required for the second quarter of 2013. The allowance for loan losses totaled $54.9 million, or 2.62% of gross loans (excluding loans held-for-sale), at June 30, 2013, compared to $58.6 million, or 2.85% of gross loans (excluding loans held-for-sale), at March 31, 2013. The coverage ratio of the allowance for loan losses to non-performing assets was 197.9% at June 30, 2013, compared with 214.6% at March 31, 2013.
Non-Performing Loans
At June 30, 2013, total non-performing loans were $26.8 million, or 1.24% of total gross loans, compared to $26.1 million, or 1.19% of total gross loans, at March 31, 2013. Non-performing covered loans (previously acquired loans covered under FDIC loss share agreements) totaled $5.4 million at June 30, 2013.
The following table shows total non-performing loans by loan type:
NON-PERFORMING LOANS | | Quarter Ended | |
(Dollars In Thousands, Net of SBA Guaranty Portions) | | Jun 30, 2013 | | Mar 31, 2013 | | Dec 31, 2012 | | Sep 30, 2012 | | Jun 30, 2012 | |
| | | | | | | | | | | |
Construction | | $ | 5,467 | | $ | 5,542 | | $ | 5,644 | | $ | 7,678 | | $ | 8,139 | |
Real Estate Secured | | 20,090 | | 19,366 | | 21,007 | | 29,726 | | 33,032 | |
Commercial & Industrial | | 1,224 | | 1,169 | | 1,302 | | 1,478 | | 1,237 | |
Total Non-Performing Loans | | 26,781 | | 26,077 | | 27,953 | | 38,882 | | 42,408 | |
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Gross Loan Charge-offs
Loan charge-offs for the second quarter of 2013 totaled $4.4 million, compared to $5.6 million in the first quarter of 2013. The largest components of the second quarter 2013 loan charge-offs were two loans secured by carwash properties totaling $2.1 million. Covered loan charge-offs totaled $164 thousand for the second quarter of 2013.
Charge-offs by loan type are reflected in the table below:
LOAN CHARGE-OFFS | | Quarter Ended | |
(Dollars In Thousands) | | Jun 30, 2013 | | Mar 31, 2013 | | Dec 31, 2012 | | Sep 30, 2012 | | Jun 30, 2012 | |
| | | | | | | | | | | |
Real Estate Secured | | $ | 3,545 | | $ | 4,405 | | $ | 1,776 | | $ | 3,015 | | $ | 2,930 | |
Commercial & Industrial | | 746 | | 1,183 | | 1,224 | | 112 | | 511 | |
Consumer | | 123 | | 1 | | — | | — | | 1 | |
Total Loan Charge-Offs | | $ | 4,414 | | $ | 5,589 | | $ | 3,000 | | $ | 3,127 | | $ | 3,442 | |
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Other measures of credit quality are shown in the following tables:
DELINQUENT LOANS - By Days Past Due | | Quarter Ended | |
(Dollars In Thousands, Net of SBA Guaranty Portions) | | Jun 30, 2013 | | Mar 31, 2013 | | Dec 31, 2012 | | Sep 30, 2012 | | Jun 30, 2012 | |
| | | | | | | | | | | |
30 - 59 Days Past Due | | $ | 4,993 | | $ | 7,438 | | $ | 3,059 | | $ | 7,507 | | $ | 9,157 | |
60 - 89 Days Past Due | | 3,637 | | 1,193 | | 1,174 | | 2,994 | | 1,412 | |
90 Days, and still accruing | | 126 | | 1,000 | | — | | — | | 923 | |
Total Delinquent Loans | | $ | 8,756 | | $ | 9,631 | | $ | 4,233 | | $ | 10,501 | | $ | 11,492 | |
TROUBLED DEBT RESTRUCTURED LOANS | | Quarter Ended | |
(Dollars In Thousands, Net of SBA Guaranty Portions) | | Jun 30, 2013 | | Mar 31, 2013 | | Dec 31, 2012 | | Sep 30, 2012 | | Jun 30, 2012 | |
| | | | | | | | | | | |
Real Estate Secured | | $ | 23,671 | | $ | 23,588 | | $ | 28,268 | | $ | 28,524 | | $ | 20,719 | |
Commercial & Industrial | | 6,730 | | 7,279 | | 7,465 | | 7,482 | | 6,983 | |
Total TDR Loans | | $ | 30,401 | | $ | 30,867 | | $ | 35,733 | | $ | 36,006 | | $ | 27,702 | |
LOAN CLASSIFICATIONS | | Quarter Ended | |
(Dollars In Thousands, Net of SBA Guaranty Portions) | | Jun 30, 2013 | | Mar 31, 2013 | | Dec 31, 2012 | | Sep 30, 2012 | | Jun 30, 2012 | |
| | | | | | | | | | | |
Special Mention | | $ | 49,571 | | $ | 74,553 | | $ | 82,275 | | $ | 94,716 | | $ | 84,345 | |
Substandard | | 138,319 | | 144,521 | | 157,192 | | 165,473 | | 178,290 | |
Doubtful | | 6,722 | | 9,301 | | 6,856 | | 7,344 | | 8,721 | |
Total Criticized and Classified Loans | | $ | 194,612 | | $ | 228,375 | | $ | 246,323 | | $ | 267,533 | | $ | 271,356 | |
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Classified Loans | | $ | 145,041 | | $ | 153,822 | | $ | 164,048 | | $ | 172,817 | | $ | 187,011 | |
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) | | June 30, 2013 | | Well Capitalized
Regulatory Requirements | | Total Excess Above Well
Capitalized Requirements | |
| | | | | | | |
Tier 1 Leverage Capital Ratio | | 14.67 | % | 5.00 | % | $ | 266,347 | |
Tier 1 Risk-Based Capital Ratio | | 18.73 | % | 6.00 | % | $ | 274,663 | |
Total Risk-Based Capital Ratio | | 20.00 | % | 10.00 | % | $ | 215,706 | |
Tangible Common Equity To Tangible Assets * | | 12.51 | % | N/A | | N/A | |
Tangible Common Equity Per Common Share * | | $ | 4.92 | | N/A | | N/A | |
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* “Tangible Common Equity” and “Tangible Assets” are Non-GAAP measure of financial performance. Please refer to the “Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures” table at the end of this press release for a reconciliation of Tangible Common Equity to Shareholders’ Equity and Tangible Assets to Total Assets
Dividend Reinstatement
The Company reinstated its quarterly dividend to common shareholders during the second quarter of 2013. A cash dividend of $0.03 per common share was declared and a total amount of $2.1 million was paid on July 15, 2013 to shareholders of record at the close of business on June 30, 2013.
Share Repurchase Program
In March 2013, the Board of Directors of Wilshire Bancorp authorized the repurchase of up to 5% of the Company’s outstanding shares of common stock. During the second quarter of 2013, the Company spent $4.3 million to repurchase 651,412 shares of its common stock at an average price of $6.56. The 651,412 repurchased shares of common stock account for 18% of the total authorized amount and an additional 2.9 million shares can be repurchased before the program’s expiration. However, the Company has no
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obligation to repurchase additional shares under this program and may suspend or discontinue it at any time.
Acquisition of BankAsiana and Saehan Bancorp
The Company agreed to acquire New Jersey-based BankAsiana and Los Angeles-based Saehan Bancorp. Both acquisitions are expected to close by the end of 2013. The acquisition of BankAsiana would expand the Company’s operations on the East Coast while the acquisition of Saehan Bank would help strengthen our operations in our primary market.
On a pro forma basis, including the pending acquisitions of BankAsiana and Saehan Bancorp, Wilshire Bancorp would have approximately $3.5 billion in total assets, $2.7 billion in net loans, and $2.8 billion in total deposits as of March 31, 2013.
CONFERENCE CALL
Management will host its quarterly conference call on July 23, 2013, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing 877-703-6109 (domestic number) or 857-244-7308 (international number) and entering passcode #42187370.
COMPANY INFORMATION
Headquartered in Los Angeles, Wilshire State Bank operates 25 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 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 and our other filings made from time to time with the SEC. 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
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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.
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CONSOLIDATED BALANCE SHEET
(Dollars In Thousands) (Unaudited)
| | June 30, | | March 31, | | Three Months | | June 30, | | Twelve Months | |
| | 2013 | | 2013 | | % Change | | 2012 | | % Change | |
ASSETS: | | | | | | | | | | | |
Cash and Due from Banks | | $ | 162,553 | | $ | 86,890 | | 87 | % | $ | 147,202 | | 10 | % |
Federal Funds Sold and Other Cash Equivalents | | 55,005 | | 55,005 | | 0 | % | 60,004 | | -8 | % |
Total Cash and Cash Equivalents | | 217,558 | | 141,895 | | 53 | % | 207,206 | | 5 | % |
| | | | | | | | | | | |
Investment Securities Available For Sale | | 303,836 | | 336,569 | | -10 | % | 298,364 | | 2 | % |
Investment Securities Held To Maturity | | 42 | | 46 | | -9 | % | 57 | | -26 | % |
Total Investment Securities | | 303,878 | | 336,615 | | -10 | % | 298,421 | | 2 | % |
| | | | | | | | | | | |
Total Loans Held-For-Sale | | 60,910 | | 134,129 | | -55 | % | 66,485 | | -8 | % |
| | | | | | | | | | | |
Real Estate Construction | | 35,513 | | 33,275 | | 7 | % | 26,386 | | 35 | % |
Residential Real Estate | | 153,393 | | 142,958 | | 7 | % | 117,318 | | 31 | % |
Commercial Real Estate | | 1,557,922 | | 1,549,280 | | 1 | % | 1,502,273 | | 4 | % |
Commercial and Industrial | | 336,048 | | 312,758 | | 7 | % | 297,049 | | 13 | % |
Consumer | | 11,068 | | 11,666 | | -5 | % | 13,580 | | -18 | % |
Total Loans Receivable, Net of Deferred Fees and Costs | | 2,093,944 | | 2,049,937 | | 2 | % | 1,956,606 | | 7 | % |
Allowance For Loan Losses | | (54,937 | ) | (58,577 | ) | -6 | % | (89,134 | ) | -38 | % |
Loans Receivable, Net of Allowance for Loan Losses | | 2,039,007 | | 1,991,360 | | -2 | % | 1,867,472 | | 9 | % |
| | | | | | | | | | | |
Accrued Interest Receivable | | 7,135 | | 7,533 | | -5 | % | 7,806 | | -9 | % |
Due from Customers on Acceptances | | 293 | | 162 | | 81 | % | 382 | | -23 | % |
Other Real Estate Owned | | 982 | | 1,219 | | -19 | % | 4,351 | | -77 | % |
Premises and Equipment | | 11,699 | | 11,218 | | 4 | % | 12,248 | | -4 | % |
Federal Home Loan Bank (FHLB) Stock, at Cost | | 13,280 | | 11,933 | | 11 | % | 14,051 | | -5 | % |
Cash Surrender Value of Life Insurance | | 22,225 | | 22,074 | | 1 | % | 20,181 | | 10 | % |
Investment in affordable housing partnerships | | 45,511 | | 38,334 | | 19 | % | 36,007 | | 26 | % |
Deferred Income Taxes | | 17,734 | | 17,135 | | 3 | % | 6,115 | | 190 | % |
Servicing Assets | | 11,040 | | 10,421 | | 6 | % | 9,505 | | 16 | % |
Goodwill | | 6,675 | | 6,675 | | 0 | % | 6,675 | | 0 | % |
FDIC Indemnification Asset | | 5,311 | | 4,954 | | 7 | % | 12,629 | | -58 | % |
Other Assets | | 24,163 | | 20,763 | | 16 | % | 21,865 | | 11 | % |
TOTAL ASSETS | | $ | 2,787,401 | | $ | 2,756,420 | | 1 | % | $ | 2,591,399 | | 8 | % |
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LIABILITIES AND SHAREHOLDERS’ EQUITY: | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | |
Non-interest Bearing Demand Deposits | | $ | 624,770 | | $ | 593,584 | | 5 | % | $ | 514,418 | | 21 | % |
Savings and Interest Checking | | 130,352 | | 125,636 | | 4 | % | 129,157 | | 1 | % |
Money Market Deposits | | 625,204 | | 623,103 | | 0 | % | 622,177 | | 0 | % |
Time Deposits in denomination of $100,000 or more | | 584,140 | | 589,502 | | -1 | % | 608,123 | | -4 | % |
Other Time Deposits | | 217,832 | | 230,733 | | -6 | % | 306,123 | | -29 | % |
Total Deposits | | 2,182,298 | | 2,162,558 | | 1 | % | 2,179,998 | | 0 | % |
| | | | | | | | | | | |
FHLB Borrowings | | 150,000 | | 150,000 | | 0 | % | — | | 0 | % |
Acceptance Outstanding | | 293 | | 162 | | 81 | % | 382 | | -23 | % |
Junior Subordinated Debentures | | 61,857 | | 61,857 | | 0 | % | 87,321 | | -29 | % |
Accrued Interest Payable | | 2,072 | | 2,056 | | 1 | % | 3,238 | | -36 | % |
Other Liabilities | | 35,547 | | 26,074 | | 36 | % | 31,404 | | 13 | % |
Total Liabilities | | 2,432,067 | | 2,402,707 | | 1 | % | 2,302,343 | | 6 | % |
| | | | | | | | | | | |
SHAREHOLDERS’ EQUITY: | | | | | | | | | | | |
Common Stock | | 160,932 | | 164,915 | | -2 | % | 164,480 | | -2 | % |
Retained Earnings | | 191,823 | | 182,405 | | 5 | % | 117,137 | | 64 | % |
Accumulated Other Comprehensive Income | | 2,579 | | 6,393 | | -60 | % | 7,439 | | -65 | % |
Total Shareholders’ Equity | | 355,334 | | 353,713 | | 0 | % | 289,056 | | 23 | % |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | | $ | 2,787,401 | | $ | 2,756,420 | | 1 | % | $ | 2,591,399 | | 8 | % |
(continued)
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CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
| | Quarter Ended | | Three Mths | | Quarter Ended | | Twelve Mths | |
| | June 30, 2013 | | March 31, 2013 | | % Change | | June 30, 2012 | | % Change | |
| | | | | | | | | | | |
INTEREST INCOME | | | | | | | | | | | |
Interest and Fees on Loans | | $ | 26,970 | | $ | 26,885 | | 0 | % | $ | 26,808 | | 1 | % |
Interest on Investment Securities | | 1,743 | | 1,725 | | 1 | % | 1,560 | | 12 | % |
Interest on Federal Funds Sold | | 136 | | 153 | | -11 | % | 423 | | -68 | % |
Total Interest Income | | 28,849 | | 28,763 | | 0 | % | 28,791 | | 0 | % |
| | | | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | | |
Deposits | | 2,750 | | 2,849 | | -3 | % | 4,015 | | -32 | % |
FHLB Advances and Other Borrowings | | 345 | | 362 | | -5 | % | 532 | | -35 | % |
Total Interest Expense | | 3,095 | | 3,211 | | -4 | % | 4,547 | | -32 | % |
| | | | | | | | | | | |
Net Interest Income Before Credit for Losses on Loans and Loan Commitments | | 25,754 | | 25,552 | | 1 | % | 24,244 | | 6 | % |
Credit for Losses on Loans and Loan Commitments | | — | | — | | 0 | % | (10,000 | ) | -100 | % |
| | | | | | | | | | | |
Net Interest Income After Credit for Losses on Loans and Loan Commitments | | 25,754 | | 25,552 | | 1 | % | 34,244 | | -25 | % |
| | | | | | | | | | | |
NONINTEREST INCOME | | | | | | | | | | | |
Service Charges on Deposits | | 2,811 | | 2,808 | | 0 | % | 3,238 | | -13 | % |
Gain on Sales of Loans, Net | | 3,135 | | 3,486 | | -10 | % | 3,254 | | -4 | % |
Gain on Sale/Call of Investment Securities | | 15 | | — | | 0 | % | — | | 0 | % |
Other | | 2,371 | | 2,411 | | -2 | % | 2,022 | | 17 | % |
Total Noninterest Income | | 8,332 | | 8,705 | | -4 | % | 8,514 | | -2 | % |
| | | | | | | | | | | |
NONINTEREST EXPENSES | | | | | | | | | | | |
Salaries and Employee Benefits | | 9,548 | | 8,805 | | 8 | % | 9,038 | | 6 | % |
FDIC Indemnification Impairment | | — | | — | | 0 | % | 2,000 | | -100 | % |
Occupancy & Equipment | | 2,038 | | 2,040 | | 0 | % | 1,950 | | 5 | % |
Data Processing | | 583 | | 675 | | -14 | % | 717 | | -19 | % |
Other | | 4,913 | | 5,764 | | -15 | % | 6,663 | | -26 | % |
Total Noninterest Expenses | | 17,082 | | 17,284 | | -1 | % | 20,368 | | -16 | % |
| | | | | | | | | | | |
Income Before Income Taxes | | 17,004 | | 16,973 | | 0 | % | 22,390 | | -24 | % |
Income Taxes Provision | | 5,465 | | 5,384 | | 2 | % | 215 | | 2442 | % |
NET INCOME | | $ | 11,539 | | $ | 11,589 | | 0 | % | $ | 22,175 | | -48 | % |
| | | | | | | | | | | |
Preferred Stock Cash Dividend | | — | | — | | 0 | % | (29 | ) | -100 | % |
Accretion of Preferred Stock Discount | | — | | — | | 0 | % | (35 | ) | -100 | % |
Total Preferred Stock Related Adjustment | | — | | — | | 0 | % | (64 | ) | -100 | % |
| | | | | | | | | | | |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | | $ | 11,539 | | $ | 11,589 | | 0 | % | $ | 22,111 | | -48 | % |
| | | | | | | | | | | |
PER COMMON SHARE INFORMATION: | | | | | | | | | | | |
Basic Income Per Common Share | | $ | 0.16 | | $ | 0.16 | | 0 | % | $ | 0.31 | | -48 | % |
Diluted Income Per Common Share | | $ | 0.16 | | $ | 0.16 | | 0 | % | $ | 0.31 | | -48 | % |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | | | | | |
Basic | | 70,944,626 | | 71,295,673 | | | | 71,285,870 | | | |
Diluted | | 71,101,787 | | 71,431,841 | | | | 71,385,624 | | | |
(continued)
9
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
| | Six Months Ended | | Twelve Months | |
| | June 30, 2013 | | June 30, 2012 | | % Change | |
| | | | | | | |
INTEREST INCOME | | | | | | | |
Interest and Fees on Loans | | $ | 53,855 | | $ | 53,929 | | 0 | % |
Interest on Investment Securities | | 3,468 | | 3,085 | | 12 | % |
Interest on Federal Funds Sold | | 289 | | 1,023 | | -72 | % |
Total Interest Income | | 57,612 | | 58,037 | | -1 | % |
| | | | | | | |
INTEREST EXPENSE | | | | | | | |
Deposits | | 5,599 | | 8,269 | | -32 | % |
FHLB Advances and Other Borrowings | | 707 | | 1,085 | | -35 | % |
Total Interest Expense | | 6,306 | | 9,354 | | -33 | % |
| | | | | | | |
Net Interest Income Before Credit for Losses on Loans and Loan Commitments | | 51,306 | | 48,683 | | 5 | % |
Credit for Losses on Loans and Loan Commitments | | — | | (10,000 | ) | -100 | % |
| | | | | | | |
Net Interest Income After Credit for Losses on Loans and Loan Commitments | | 51,306 | | 58,683 | | -13 | % |
| | | | | | | |
NONINTEREST INCOME | | | | | | | |
Service Charges on Deposits | | 5,619 | | 6,464 | | -13 | % |
Gain on Sales of Loans, Net | | 6,621 | | 4,012 | | 65 | % |
Gain on Sale/Call of Investment Securities | | 15 | | 3 | | 400 | % |
Other | | 4,782 | | 4,422 | | 8 | % |
Total Noninterest Income | | 17,037 | | 14,901 | | 14 | % |
| | | | | | | |
NONINTEREST EXPENSES | | | | | | | |
Salaries and Employee Benefits | | 18,353 | | 17,200 | | 7 | % |
FDIC Indemnification Impairment | | — | | 2,000 | | -100 | % |
Occupancy & Equipment | | 4,078 | | 3,892 | | 5 | % |
Data Processing | | 1,258 | | 1,449 | | -13 | % |
Other | | 10,677 | | 10,556 | | 1 | % |
Total Noninterest Expenses | | 34,366 | | 35,097 | | -2 | % |
| | | | | | | |
Income Before Income Taxes | | 33,977 | | 38,487 | | -12 | % |
Income Taxes Provision (Benefit) | | 10,849 | | (139 | ) | N/A | |
NET INCOME | | $ | 23,128 | | $ | 38,626 | | -40 | % |
| | | | | | | |
Preferred Stock Cash Dividend | | — | | (830 | ) | -100 | % |
Accretion of Preferred Stock Discount | | — | | (1,158 | ) | -100 | % |
One-time Adjustment From Repurchase of Preferred Stock | | — | | 3,389 | | -100 | % |
Total Preferred Stock Related Adjustment | | — | | 1,401 | | -100 | % |
| | | | | | | |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | | $ | 23,128 | | $ | 40,027 | | -42 | % |
| | | | | | | |
PER COMMON SHARE INFORMATION: | | | | | | | |
Basic Income Per Common Share | | $ | 0.33 | | $ | 0.56 | | -42 | % |
Diluted Income Per Common Share | | $ | 0.32 | | $ | 0.56 | | -42 | % |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | |
Basic | | 71,119,180 | | 71,284,194 | | | |
Diluted | | 71,262,224 | | 71,344,150 | | | |
(continued)
10
SUMMARY OF FINANCIAL DATA
(Dollars In Thousands, Except Per Share Data) (Unaudited)
| | Quarter Ended | |
| | June 30, 2013 | | March 31, 2013 | | June 30, 2012 | |
AVERAGE BALANCES | | | | | | | |
Average Assets | | $ | 2,770,996 | | $ | 2,726,058 | | $ | 2,570,530 | |
Average Equity | | 356,287 | | 348,071 | | 276,021 | |
Average Net Loans | | 2,113,955 | | 2,063,649 | | 1,877,716 | |
Average Deposits | | 2,170,628 | | 2,135,445 | | 2,169,831 | |
Average Time Deposits in denomination of $100,000 or more | | 586,136 | | 581,213 | | 616,612 | |
Average FHLB & Other Borrowings | | 150,000 | | 150,044 | | 0 | |
Average Interest Earning Assets | | 2,555,295 | | 2,517,165 | | 2,365,217 | |
| | | | | | | | | | |
| | Six Months Ended | |
| | June 30, 2013 | | June 30, 2012 | |
AVERAGE BALANCES | | | | | |
Average Assets | | $ | 2,747,399 | | $ | 2,606,256 | |
Average Equity | | 352,202 | | 295,500 | |
Average Net Loans | | 2,088,941 | | 1,866,513 | |
Average Deposits | | 2,153,134 | | 2,174,491 | |
Average Time Deposits in denomination of $100,000 or more | | 583,688 | | 631,387 | |
Average FHLB & Other Borrowings | | 150,022 | | 10,566 | |
Average Interest Earning Assets | | 2,536,335 | | 2,393,784 | |
| | | | | | | | |
| | Quarter Ended | |
| | June 30, 2013 | | March 31, 2013 | | June 30, 2012 | |
PROFITABILITY | | | | | | | |
Annualized Return on Average Assets | | 1.67 | % | 1.70 | % | 3.45 | % |
Annualized Return on Average Equity | | 12.95 | % | 13.32 | % | 32.14 | % |
Efficiency Ratio | | 50.11 | % | 50.45 | % | 62.18 | % |
Annualized Operating Expense/Average Assets | | 2.47 | % | 2.54 | % | 3.17 | % |
Annualized Net Interest Margin | | 4.06 | % | 4.09 | % | 4.13 | % |
| | Six Months Ended | |
| | June 30, 2013 | | June 30, 2012 | |
PROFITABILITY | | | | | |
Annualized Return on Average Assets | | 1.68 | % | 2.96 | % |
Annualized Return on Average Equity | | 13.13 | % | 26.14 | % |
Efficiency Ratio | | 50.28 | % | 55.20 | % |
Annualized Operating Expense/Average Assets | | 2.50 | % | 2.69 | % |
Annualized Net Interest Margin | | 4.08 | % | 4.10 | % |
| | June 30 ,2013 | | Cost of
Funds | | March 31 ,2013 | | Cost of
Funds | | June 30 ,2012 | | Cost of
Funds | |
DEPOSIT COMPOSITION | | | | | | | | | | | | | |
Noninterest Bearing Demand Deposits | | 28.6 | % | 0.00 | % | 27.4 | % | 0.00 | % | 23.6 | % | 0.00 | % |
Savings & Interest Checking | | 6.0 | % | 1.43 | % | 5.8 | % | 1.51 | % | 5.9 | % | 2.05 | % |
Money Market Deposits | | 28.6 | % | 0.63 | % | 28.8 | % | 0.63 | % | 28.5 | % | 0.83 | % |
Time Deposits of $100,000 or More | | 26.8 | % | 0.60 | % | 27.3 | % | 0.64 | % | 27.9 | % | 0.84 | % |
Other Time Deposits | | 10.0 | % | 0.78 | % | 10.7 | % | 0.80 | % | 14.0 | % | 1.01 | % |
Total Deposits | | 100.0 | % | 0.51 | % | 100.0 | % | 0.53 | % | 100.0 | % | 0.74 | % |
| | June 30 ,2013 | | March 31 ,2013 | | June 30, 2012 | |
CAPITAL RATIOS | | | | | | | |
Tier 1 Leverage Ratio | | 14.67 | % | 14.72 | % | 13.62 | % |
Tier 1 Risk-Based Capital Ratio | | 18.73 | % | 18.72 | % | 18.11 | % |
Total Risk-Based Capital Ratio | | 20.00 | % | 19.99 | % | 19.41 | % |
Total Shareholders’ Equity | | $ | 355,334 | | $ | 353,713 | | $ | 289,056 | |
Book Value Per Common Share | | $ | 5.03 | | $ | 4.96 | | $ | 4.05 | |
Tangible Common Equity Per Common Share * | | $ | 4.92 | | $ | 4.85 | | $ | 3.94 | |
Tangible Common Equity to Tangible Assets ** | | 12.51 | % | 12.59 | % | 10.88 | % |
* Tangible common equity excludes goodwill, other intangible assets
** Tangible assets excludes goodwill and intangible assets
(continued)
11
ALLOWANCE FOR LOAN LOSSES
(Dollars In Thousands) (Unaudited)
| | Quarter Ended | |
| | June 30, 2013 | | March 31, 2013 | | December 31, 2012 | | September 30, 2012 | | June 30, 2012 | |
| | | | | | | | | | | |
Balance at Beginning of Period | | $ | 58,577 | | $ | 63,285 | | $ | 74,353 | | $ | 89,134 | | $ | 99,826 | |
Credit for Losses on Loans | | — | | — | | (10,600 | ) | (12,000 | ) | (9,000 | ) |
Recoveries on Loans Previously Charged-off | | 774 | | 881 | | 2,532 | | 346 | | 1,750 | |
Gross Loan Charge-offs | | (4,414 | ) | (5,589 | ) | (3,000 | ) | (3,127 | ) | (3,442 | ) |
Balance at End of Period | | $ | 54,937 | | $ | 58,577 | | $ | 63,285 | | $ | 74,353 | | $ | 89,134 | |
| | | | | | | | | | | |
Net Loan Charge-offs/Average Total Loans | | 0.17 | % | 0.23 | % | 0.02 | % | 0.14 | % | 0.09 | % |
Charge-offs/Average Total Loans | | 0.21 | % | 0.27 | % | 0.15 | % | 0.16 | % | 0.18 | % |
Allowance for Loan Losses/Gross Loans * | | 2.62 | % | 2.85 | % | 3.15 | % | 3.81 | % | 4.54 | % |
Allowance for Loan Losses/Legacy Wilshire Loans * | | 2.75 | % | 3.01 | % | 3.33 | % | 4.08 | % | 4.89 | % |
Allowance for Loan Losses/Non-accrual Loans | | 206.10 | % | 233.59 | % | 226.40 | % | 191.23 | % | 214.86 | % |
Allowance for Loan Losses/Non-performing Loans | | 205.13 | % | 224.63 | % | 226.40 | % | 191.23 | % | 210.18 | % |
Allowance for Loan Losses/Non-performing Assets | | 197.88 | % | 214.60 | % | 210.73 | % | 180.65 | % | 190.62 | % |
* Excluding loans held-for-sale
NON-PERFORMING ASSETS
(Dollars In Thousands, Net of SBA Guaranty Portions)
(Unaudited)
| | Quarter Ended | |
| | June 30, 2013 | | March 31, 2013 | | December 31, 2012 | | September 30, 2012 | | June 30, 2012 | |
| | | | | | | | | | | |
Non-accrual Loans | | $ | 26,655 | | $ | 25,077 | | $ | 27,953 | | $ | 38,882 | | $ | 41,485 | |
Loans 90 days or more past due and still accruing | | 126 | | 1,000 | | — | | — | | 923 | |
Total Non-performing Loans | | 26,781 | | 26,077 | | 27,953 | | 38,882 | | 42,408 | |
| | | | | | | | | | | |
Total OREO | | 982 | | 1,219 | | 2,079 | | 2,277 | | 4,351 | |
| | | | | | | | | | | |
Total Non-performing Assets | | $ | 27,763 | | $ | 27,296 | | $ | 30,032 | | $ | 41,159 | | $ | 46,759 | |
| | | | | | | | | | | |
Total Non-performing Loans/Gross Loans | | 1.24 | % | 1.19 | % | 1.30 | % | 1.86 | % | 2.09 | % |
Total Non-performing Assets/Total Assets | | 1.00 | % | 0.99 | % | 1.09 | % | 1.57 | % | 1.80 | % |
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS
(Dollars In Thousands) (Unaudited)
| | Quarter Ended | |
| | June 30, 2013 | | March 31, 2013 | | December 31, 2012 | | September 30, 2012 | | June 30, 2012 | |
Balance at beginning of period | | $ | 1,023 | | $ | 1,023 | | $ | 2,423 | | $ | 2,423 | | $ | 3,423 | |
Credit for losses on off-balance sheet items | | — | | — | | (1,400 | ) | — | | (1,000 | ) |
Balance at end of period | | $ | 1,023 | | $ | 1,023 | | $ | 1,023 | | $ | 2,423 | | $ | 2,423 | |
| | Six Months Ended | |
| | June 30, 2013 | | June 30, 2012 | |
| | | | | |
Balance at beginning of period | | 1,023 | | $ | 3,423 | |
Credit for losses on off-balance sheet items | | — | | (1,000 | ) |
Balance at end of period | | $ | 1,023 | | $ | 2,423 | |
| | | | | | | |
(continued)
12
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
| | For the Quarter Ended | |
| | June 30, 2013 | | March 31, 2013 | | June 30, 2012 | |
| | | | Interest | | Average | | | | Interest | | Average | | | | Interest | | Average | |
| | Average | | Income/ | | Yield/ | | Average | | Income/ | | Yield/ | | Average | | Income/ | | Yield/ | |
| | Balance | | Expense | | Rate | | Balance | | Expense | | Rate | | Balance | | Expense | | Rate | |
INTEREST EARNING ASSETS | | | | | | | | | | | | | | | | | | | |
LOANS: | | | | | | | | | | | | | | | | | | | |
Real Estate Loans | | $ | 1,815,010 | | $ | 22,074 | | 4.87 | % | $ | 1,804,496 | | $ | 22,435 | | 4.97 | % | $ | 1,671,048 | | $ | 22,657 | | 5.42 | % |
Commercial Loans | | 351,460 | | 4,061 | | 4.62 | % | 314,389 | | 3,630 | | 4.62 | % | 295,630 | | 3,657 | | 4.95 | % |
Consumer Loans | | 11,299 | | 75 | | 2.66 | % | 12,827 | | 80 | | 2.50 | % | 15,283 | | 100 | | 2.62 | % |
Total Gross Loans | | 2,177,769 | | 26,210 | | 4.81 | % | 2,131,712 | | 26,145 | | 4.91 | % | 1,981,961 | | 26,414 | | 5.33 | % |
Loan Fees toward Yield | | | | 760 | | | | | | 740 | | | | | | 394 | | | |
Allowance for Loan Losses & Unearned Income | | (63,814 | ) | | | | | (68,063 | ) | | | | | (104,245 | ) | | | | |
Net Loans | | 2,113,955 | | 26,970 | | 5.10 | % | 2,063,649 | | 26,885 | | 5.21 | % | 1,877,716 | | 26,808 | | 5.71 | % |
| | | | | | | | | | | | | | | | | | | |
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS: | | | | | | | | | | | | | | | | | | | |
Investment Securities* | | 323,502 | | 1,743 | | 2.39 | % | 324,261 | | 1,725 | | 2.37 | % | 291,258 | | 1,560 | | 2.42 | % |
Federal Funds Sold | | 117,838 | | 136 | | 0.46 | % | 129,255 | | 153 | | 0.47 | % | 196,243 | | 423 | | 0.86 | % |
Total Investment Securities and Other Earning Assets | | 441,340 | | 1,879 | | 1.87 | % | 453,516 | | 1,878 | | 1.83 | % | 487,501 | | 1,983 | | 1.79 | % |
| | | | | | | | | | | | | | | | | | | |
TOTAL INTEREST-EARNING ASSETS | | 2,555,295 | | 28,849 | | 4.55 | % | $ | 2,517,165 | | $ | 28,763 | | 4.60 | % | $ | 2,365,217 | | $ | 28,791 | | 4.90 | % |
| | | | | | | | | | | | | | | | | | | |
Total Non-Interest Earning Assets | | 215,701 | | | | | | 208,893 | | | | | | 205,313 | | | | | |
TOTAL ASSETS | | $ | 2,770,996 | | | | | | $ | 2,726,058 | | | | | | $ | 2,570,530 | | | | | |
| | | | | | | | | | | | | | | | | | | |
INTEREST BEARING LIABILITIES | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
INTEREST-BEARING DEPOSITS: | | | | | | | | | | | | | | | | | | | |
Money Market | | $ | 617,837 | | $ | 971 | | 0.63 | % | $ | 623,471 | | $ | 976 | | 0.63 | % | $ | 612,223 | | $ | 1,267 | | 0.83 | % |
NOW | | 27,915 | | 14 | | 0.20 | % | 25,958 | | 12 | | 0.19 | % | 25,747 | | 22 | | 0.34 | % |
Savings | | 101,263 | | 447 | | 1.77 | % | 100,560 | | 464 | | 1.85 | % | 102,348 | | 633 | | 2.47 | % |
Time Deposits of $100,000 or More | | 586,136 | | 884 | | 0.60 | % | 581,213 | | 924 | | 0.64 | % | 616,612 | | 1,293 | | 0.84 | % |
Other Time Deposits | | 223,256 | | 434 | | 0.78 | % | 235,862 | | 473 | | 0.80 | % | 318,400 | | 800 | | 1.01 | % |
Total Interest Bearing Deposits | | 1,556,407 | | 2,750 | | 0.71 | % | 1,567,064 | | 2,849 | | 0.73 | % | 1,675,330 | | 4,015 | | 0.96 | % |
| | | | | | | | | | | | | | | | | | | |
BORROWINGS: | | | | | | | | | | | | | | | | | | | |
FHLB Advances and Other Borrowings | | 150,000 | | 64 | | 0.17 | % | 150,044 | | 80 | | 0.21 | % | 0 | | 0 | | 0.00 | % |
Junior Subordinated Debentures | | 61,857 | | 281 | | 1.82 | % | 61,857 | | 282 | | 1.82 | % | 87,321 | | 532 | | 2.44 | % |
Total Borrowings | | 211,857 | | 345 | | 0.65 | % | 211,901 | | 362 | | 0.68 | % | 87,321 | | 532 | | 2.44 | % |
| | | | | | | | | | | | | | | | | | | |
TOTAL INTEREST BEARING LIABILITIES | | $ | 1,768,264 | | $ | 3,095 | | 0.70 | % | $ | 1,778,965 | | $ | 3,211 | | 0.72 | % | $ | 1,762,651 | | $ | 4,547 | | 1.03 | % |
| | | | | | | | | | | | | | | | | | | |
Non-Interest Bearing Deposits | | 614,221 | | | | | | 568,381 | | | | | | 494,501 | | | | | |
Other Liabilities | | 32,224 | | | | | | 30,641 | | | | | | 37,357 | | | | | |
Shareholders’ Equity | | 356,287 | | | | | | 348,071 | | | | | | 276,021 | | | | | |
TOTAL LIABILITIES AND EQUITY | | $ | 2,770,996 | | | | | | $ | 2,726,058 | | | | | | $ | 2,570,530 | | | | | |
| | | | | | | | | | | | | | | | | | | |
NET INTEREST INCOME | | | | $ | 25,754 | | | | | | $ | 25,552 | | | | | | $ | 24,244 | | | |
. | | | | | | | | | | | | | | | | | | | |
NET INTEREST SPREAD | | | | | | 3.85 | % | | | | | 3.88 | % | | | | | 3.87 | % |
| | | | | | | | | | | | | | | | | | | |
NET INTEREST MARGIN | | | | | | 4.06 | % | | | | | 4.09 | % | | | | | 4.13 | % |
* Tax equivalent ratios for investment securities
(continued)
13
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, 2013 | | June 30, 2012 | |
| | | | Interest | | Average | | | | Interest | | Average | |
| | Average | | Income/ | | Yield/ | | Average | | Income/ | | Yield/ | |
| | Balance | | Expense | | Rate | | Balance | | Expense | | Rate | |
INTEREST EARNING ASSETS | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
LOANS: | | | | | | | | | | | | | |
Real Estate Loans | | $ | 1,795,057 | | $ | 44,176 | | 4.92 | % | $ | 1,668,133 | | $ | 45,571 | | 5.46 | % |
Commercial Loans | | 347,752 | | 8,024 | | 4.62 | % | 288,695 | | 7,054 | | 4.89 | % |
Consumer Loans | | 12,059 | | 155 | | 2.57 | % | 15,511 | | 205 | | 2.64 | % |
Total Gross Loans | | 2,154,868 | | 52,355 | | 4.86 | % | 1,972,339 | | 52,830 | | 5.36 | % |
Loan Fees toward Yield | | | | 1,500 | | | | | | 1,099 | | | |
Allowance for Loan Losses & Unearned Income | | (65,927 | ) | | | | | (105,826 | ) | | | | |
Net Loans | | 2,088,941 | | 53,855 | | 5.16 | % | 1,866,513 | | 53,929 | | 5.78 | % |
| | | | | | | | | | | | | |
INVESTMENT SECURITIES AND | | | | | | | | | | | | | |
OTHER INTEREST-EARNING ASSETS: | | | | | | | | | | | | | |
Investment Securities* | | 323,879 | | 3,468 | | 2.38 | % | 299,872 | | 3,085 | | 2.34 | % |
Federal Funds Sold | | 123,515 | | 289 | | 0.47 | % | 227,399 | | 1,023 | | 0.90 | % |
Total Investment Securities and Other Earning Assets | | 447,394 | | 3,757 | | 1.85 | % | 527,271 | | 4,108 | | 1.72 | % |
| | | | | | | | | | | | | |
TOTAL INTEREST-EARNING ASSETS | | $ | 2,536,335 | | $ | 57,612 | | 4.57 | % | $ | 2,393,784 | | $ | 58,037 | | 4.88 | % |
| | | | | | | | | | | | | |
Total Non-Interest Earnings Assets | | 211,064 | | | | | | 212,472 | | | | | |
TOTAL ASSETS | | $ | 2,747,399 | | | | | | $ | 2,606,256 | | | | | |
| | | | | | | | | | | | | |
INTEREST BEARING LIABILITIES | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
INTEREST-BEARING DEPOSITS: | | | | | | | | | | | | | |
Money Market | | $ | 620,639 | | $ | 1,947 | | 0.63 | % | $ | 597,967 | | $ | 2,490 | | 0.83 | % |
NOW | | 26,941 | | 26 | | 0.19 | % | 24,981 | | 41 | | 0.33 | % |
Savings | | 100,914 | | 912 | | 1.81 | % | 101,656 | | 1,308 | | 2.57 | % |
Time Deposits of $100,000 or More | | 583,688 | | 1,808 | | 0.62 | % | 631,387 | | 2,740 | | 0.87 | % |
Other Time Deposits | | 229,524 | | 906 | | 0.79 | % | 329,683 | | 1,690 | | 1.03 | % |
Total Interest Bearing Deposits | | 1,561,706 | | 5,599 | | 0.72 | % | 1,685,674 | | 8,269 | | 0.98 | % |
| | | | | | | | | | | | | |
BORROWINGS: | | | | | | | | | | | | | |
FHLB Advances and Other Borrowings | | 150,022 | | 143 | | 0.19 | % | 10,566 | | 6 | | 0.11 | % |
Junior Subordinated Debentures | | 61,857 | | 564 | | 1.82 | % | 87,321 | | 1,079 | | 2.47 | % |
Total Borrowings | | 211,879 | | 707 | | 0.67 | % | 97,887 | | 1,085 | | 2.22 | % |
| | | | | | | | | | | | | |
TOTAL INTEREST BEARING LIABILITIES | | $ | 1,773,585 | | $ | 6,306 | | 0.71 | % | $ | 1,783,561 | | $ | 9,354 | | 1.05 | % |
| | | | | | | | | | | | | |
Non-Interest Bearing Deposits | | 591,428 | | | | | | 488,817 | | | | | |
Other Liabilities | | 30,184 | | | | | | 38,378 | | | | | |
Shareholders’ Equity | | 352,202 | | | | | | 295,500 | | | | | |
TOTAL LIABILITIES AND EQUITY | | $ | 2,747,399 | | | | | | $ | 2,606,256 | | | | | |
| | | | | | | | | | | | | |
NET INTEREST INCOME | | | | $ | 51,306 | | | | | | $ | 48,683 | | | |
| | | | | | | | | | | | | |
NET INTEREST SPREAD | | | | | | 3.86 | % | | | | | 3.84 | % |
| | | | | | | | | | | | | |
NET INTEREST MARGIN | | | | | | 4.08 | % | | | | | 4.10 | % |
(continued)
14
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES:
TANGIBLE COMMON EQUITY AND TANGIBLE ASSETS *
(Dollars In Thousands, Except Share Data) (Unaudited)
| | Quarter Ended | |
| | June 30, 2013 | | March 31, 2013 | | June 30, 2012 | |
| | | | | | | |
Total shareholders’ equity | | $ | 355,334 | | $ | 353,713 | | $ | 289,056 | |
Goodwill and other intangible assets, net | | (7,572 | ) | (7,642 | ) | (7,854 | ) |
Tangible common equity | | $ | 347,762 | | $ | 346,071 | | $ | 281,202 | |
| | | | | | | |
Total assets | | $ | 2,787,401 | | $ | 2,756,420 | | $ | 2,591,399 | |
Goodwill and other intangible assets, net | | (7,572 | ) | (7,642 | ) | (7,854 | ) |
Tangible assets | | $ | 2,779,829 | | $ | 2,748,778 | | $ | 2,583,545 | |
| | | | | | | |
Common shares outstanding | | 70,697,944 | | 71,296,956 | | 71,287,518 | |
PRE-TAX, PRE-PROVISION INCOME (PTPP) *
(Dollars In Thousands) (Unaudited)
| | Quarter Ended | |
| | June 30, 2013 | | March 31, 2013 | | June 30, 2012 | |
| | | | | | | |
Net Income | | $ | 11,539 | | $ | 11,589 | | $ | 22,111 | |
Add Back - Income Tax Provision | | 5,465 | | 5,384 | | 215 | |
Add Back - Credit for Losses on Loans and Loan Commitments | | — | | — | | (10,000 | ) |
Pre-tax, Pre-Provision Income (PTPP) | | $ | 17,004 | | $ | 16,973 | | $ | 12,326 | |
| | | | | | | |
PTPP to Average Assets (Annualized) | | 2.45 | % | 2.49 | % | 1.92 | % |
| | Six Months Ended | |
| | June 30, 2013 | | June 30, 2012 | |
| | | | | |
Net Income | | $ | 23,128 | | $ | 38,626 | |
Add Back - Income Tax Provision (Benefit) | | 10,849 | | (139 | ) |
Add Back - Credit for Losses on Loans and Loan Commitments | | — | | (10,000 | ) |
Pre-tax, Pre-Provision Income (PTPP) | | $ | 33,977 | | $ | 28,487 | |
| | | | | |
PTPP to Average Assets (Annualized) | | 2.47 | % | 2.19 | % |
* Tangible Common Equity, Tangible Assets, and Pre-tax, Pre-provision Income are Non-GAAP financial measures. Management believes that presentation of non-GAAP financial information included in this press release are meaningful and useful in understanding the business metrics of the Company’s operations. We provide non-GAAP financial information for informational purposes and to enhance an understanding of the Company’s GAAP consolidated financial statements. Readers should consider this non-GAAP information in addition to, but not instead or as superior to, the Company’s financial statements in accordance with GAAP. Non-GAAP financial information presented by us may be determined or calculated differently by other companies, limiting the usefulness of non-GAAP measures for comparative purposes
(concluded)
15
