Exhibit 99.1
WILSHIRE BANCORP, INC. | | 
| | |
CONTACT: | | | |
Alex Ko, EVP & CFO, (213) 427-6560 | | | NEWS RELEASE |
www.wilshirebank.com | | | |
Wilshire Bancorp Reports Net Income of $16.1 Million or
$0.20 per Share for Fourth Quarter 2014
LOS ANGELES, January 26, 2015 - Wilshire Bancorp, Inc. (NASDAQ: WIBC) (the “Company”), the holding company for Wilshire Bank (the “Bank”), today reported net income of $16.1 million, or $0.20 per diluted common share, for the quarter ended December 31, 2014. This compares to net income of $10.9 million, or $0.15 per diluted common share, for the same period of the prior year, and net income of $15.1 million, or $0.19 per diluted common share, for the third quarter of 2014.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, “We had another strong quarter of business development with $327 million in loan originations, which is an increase of 47% compared to the same quarter in 2013. As a result of the strong marketing team we have built, we have been able to more deeply penetrate our existing markets and generate full year loan growth of 16% in 2014. We are also making good progress towards our goal of building a more diversified loan portfolio, as our commercial portfolio and our residential real estate portfolio are growing at significantly higher rates than our commercial real estate portfolio. Our positive business development trends, continued low credit costs, and disciplined expense control has helped us to deliver a consistently strong level of returns with a return on average assets of 1.57% and a return on average equity of 12.65% for the full year 2014.”
“In addition to continuing to expand our customer base in our core markets, we plan to increase our presence in the Southeastern United States, where we are seeing strong growth in the multi-ethnic communities that we serve. We believe this expansion will provide an incremental source of growth, while also helping us to build a stronger, more diversified banking franchise,” said Mr. Yoo.
Q4 2014 Summary
· Net income totaled $16.1 million, or $0.20 per diluted common share, for the fourth quarter of 2014
· Total net revenue of $47.4 million for the fourth quarter of 2014, an increase of 13.8% from the fourth quarter of 2013
· Return on average assets of 1.59% and return on average equity of 13.27% for the fourth quarter of 2014
· Net interest margin of 4.00% for the fourth quarter of 2014, a decrease from 4.26% for the third quarter of 2014
· Loans receivable (net of deferred fees and costs) totaled $3.31 billion at December 31, 2014, an increase of 17% from $2.82 billion at December 31, 2013
· Total deposits were $3.40 billion at December 31, 2014, an increase of 18% from $2.87 billion at December 31, 2013
· Continued improvement in asset quality resulted in no provision for losses on loans and loan commitments for the fourth quarter of 2014
Wilshire Bancorp Inc. — 4Q 2014 Results
January 26, 2015
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STATEMENT OF OPERATIONS
Net interest income before provision for losses on loans and loan commitments totaled $37.5 million for the fourth quarter of 2014, an increase of 16% from $32.3 million for the fourth quarter of 2013, and an increase of 2% from $36.8 million for the third quarter of 2014. The increase from the prior quarter is primarily attributable to a higher average loan balance. Discount accretion income from loans acquired from Saehan Bancorp and BankAsiana totaled $2.4 million for the fourth quarter of 2014, compared to $2.9 million for the third quarter of 2014.
Net interest margin was 4.00% for the fourth quarter of 2014, compared to 4.26% for the third quarter of 2014, and 4.20% for the fourth quarter of 2013. Excluding the effect of the amortization/accretion of the purchase accounting adjustments for the acquisitions of Saehan Bancorp and BankAsiana, the net interest margin* was 3.74% for the fourth quarter of 2014, compared with 3.89% for the third quarter of 2014, and 3.91% for the fourth quarter of 2013. The decrease in net interest margin is attributable to an increase in lower yielding fed funds sold balances and a decline in discount accretion income for the fourth quarter of 2014, compared to the third quarter of 2014 and fourth quarter of 2013.
Loan yields were 5.09% for the fourth quarter of 2014, compared with 5.12% for the third quarter of 2014, and 5.17% for the fourth quarter of 2013. Excluding the effect of the accretion of the purchase accounting adjustments for the acquisitions of Saehan Bancorp and BankAsiana, loan yields* were 4.79% for the fourth quarter of 2014, compared to 4.74% for the third quarter of 2014, and 4.86% for the fourth quarter of 2013.
Net interest margin and loan yields excluding the effect of acquisition accounting adjustments are non-GAAP measures. Please refer to the “Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures” table at the end of this press release.
The total cost of deposits was 0.58% for the fourth quarter of 2014, compared with 0.53% for the third quarter of 2014 and 0.53% for the fourth quarter of 2013. The increase in cost of deposits for the fourth quarter of 2014 compared to the third quarter of 2014 and fourth quarter of 2013, was primarily due to an increase in rates on time deposits.
Non-Interest Income
Total non-interest income was $9.9 million for the fourth quarter of 2014, compared to $9.3 million for the fourth quarter of 2013, and $9.6 million for the third quarter of 2014. The increase from the prior quarter was primarily due to an increase in net gain on sale of Small Business Administration (“SBA”) loans, while the increase from the same period in 2013 was due to an increase in other non-interest income.
The $3.5 million in net gain on sale of loans recognized during the fourth quarter of 2014 consisted mostly of gains from the sale of SBA loans. Net gain on sale of loans for the third quarter of 2014 was $2.4 million. During the fourth quarter of 2014, the Company sold $35.5 million in SBA loans, compared with $20.3 million sold during the third quarter of 2014.
Non-Interest Expense
Total non-interest expense was $23.5 million for the fourth quarter of 2014, compared with $24.7 million for the fourth quarter of 2013, and $23.2 million for the third quarter of 2014. The increase in non-interest expense from the prior quarter was due to increases in salaries and employee benefits and other non-interest expenses.
Total salaries and employee benefits expense was $12.4 million for the fourth quarter of 2014, compared with $12.9 million for the fourth quarter of 2013, and $12.3 million for the third quarter of 2014.
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Wilshire Bancorp Inc. — 4Q 2014 Results
January 26, 2015
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Other non-interest expense for the fourth quarter of 2014 totaled $6.7 million, compared with $6.3 million for the fourth quarter of 2013, and $6.5 million for the third quarter of 2014. The increase in other non-interest expense during the fourth quarter of 2014 compared to prior quarters was primarily attributable to an increase in expenses related to OREO (other real estate owned).
The Company’s operating efficiency ratio was 49.5% for the fourth quarter of 2014, compared with 59.2% for the fourth quarter of 2013, and 50.1% for the third quarter of 2014.
BALANCE SHEET
Total loans receivable (net of deferred fees and costs) were $3.31 billion at December 31, 2014, compared to $3.16 billion at September 30, 2014. The increase in loans during the fourth quarter of 2014 was driven by growth in real estate secured and commercial & industrial loans.
The following table shows total loans receivable, loans held-for-sale, and total loans by loan type:
| | Quarter Ended | |
(Dollars In Thousands) (Unaudited) | | December 31, 2014 | | September 30, 2014 | | June 30, 2014 | | March 31, 2014 | | December 31, 2013 | |
| | | | | | | | | | | |
Construction | | $ | 21,248 | | $ | 40,062 | | $ | 43,292 | | $ | 42,124 | | $ | 39,268 | |
Real Estate Secured | | 2,655,251 | | 2,593,242 | | 2,481,801 | | 2,395,487 | | 2,314,527 | |
Commercial & Industrial | | 610,762 | | 515,831 | | 431,758 | | 417,956 | | 448,379 | |
Consumer | | 21,036 | | 12,810 | | 13,044 | | 16,072 | | 14,668 | |
Total Loans Receivable * | | 3,308,297 | | 3,161,945 | | 2,969,895 | | 2,871,639 | | 2,816,842 | |
Held-For-Sale Loans | | 11,783 | | 16,236 | | 6,207 | | 27,791 | | 47,557 | |
Total Loans * | | $ | 3,320,080 | | $ | 3,178,181 | | $ | 2,976,102 | | $ | 2,899,430 | | $ | 2,864,399 | |
* Total loans receivable and total loans are net of deferred fees and costs as shown in the consolidated balance sheet presentation
The following table presents the December 31, 2014 balance of total loans by loan type and broken out by legacy Wilshire loans and loans acquired from former BankAsiana, Saehan Bank, and Mirae Bank.
| | At December 31, 2014 | |
(Dollars In Thousands) (Unaudited) | | BankAsiana* | | Saehan Bank* | | Mirae Bank* | | Legacy Wilshire | | Total | |
| | | | | | | | | | | |
Construction | | $ | 3,947 | | $ | — | | $ | — | | $ | 17,301 | | $ | 21,248 | |
Real Estate Secured | | 101,100 | | 303,699 | | 38,546 | | 2,211,906 | | 2,655,251 | |
Commercial & Industrial | | 20,749 | | 18,672 | | 2,607 | | 568,734 | | 610,762 | |
Consumer | | — | | 646 | | — | | 20,390 | | 21,036 | |
Total Loans Receivable | | 125,796 | | 323,017 | | 41,153 | | 2,818,331 | | 3,308,297 | |
Held-For-Sale Loans | | — | | — | | — | | 11,783 | | 11,783 | |
Total Loans | | $ | 125,796 | | $ | 323,017 | | $ | 41,153 | | $ | 2,830,114 | | $ | 3,320,080 | |
* Represents loans balances net of fair value adjustments
The following table shows quarterly loan originations:
| | Quarter Ended | |
(Dollars In Thousands) (Unaudited) | | December 31, 2014 | | September 30, 2014 | | June 30, 2014 | | March 31, 2014 | | December 31, 2013 | |
| | | | | | | | | | | | | | | | | | | | | |
Real Estate Secured | | $ | 184,477 | | 56 | % | $ | 191,272 | | 48 | % | $ | 170,042 | | 60 | % | $ | 96,266 | | 49 | % | $ | 132,780 | | 60 | % |
Commercial & Industrial | | 73,194 | | 22 | % | 89,166 | | 22 | % | 31,058 | | 11 | % | 36,619 | | 18 | % | 30,541 | | 14 | % |
Consumer | | 3,385 | | 1 | % | 6,560 | | 2 | % | 1,580 | | 1 | % | 632 | | 0 | % | 546 | | 0 | % |
SBA | | 34,747 | | 11 | % | 41,373 | | 10 | % | 37,004 | | 13 | % | 35,305 | | 18 | % | 44,599 | | 20 | % |
Residential Mortgage Dept. * | | 31,632 | | 10 | % | 70,791 | | 18 | % | 42,325 | | 15 | % | 29,063 | | 15 | % | 13,858 | | 6 | % |
Total Loan Originations | | $ | 327,435 | | 100 | % | $ | 399,162 | | 100 | % | $ | 282,009 | | 100 | % | $ | 197,885 | | 100 | % | $ | 222,324 | | 100 | % |
* Originations of warehouse lines of credit are presented under the Residential Mortgage Department as shown above, however, warehouse lines of credit are reported as commercial and industrial loans on the consolidated balance sheet.
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Wilshire Bancorp Inc. — 4Q 2014 Results
January 26, 2015
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Originations for the fourth quarter of 2014 totaled $327.4 million, compared to $399.2 million for the third quarter of 2014, and $222.3 million for the fourth quarter of 2013.
Total SBA loans held-for-sale at the end of the fourth quarter of 2014 were $11.1 million, compared to $16.2 million at the end of the previous quarter. The decision to retain or sell SBA loans is made on a quarter-to-quarter basis, depending on prevailing pricing in the secondary market and the Company’s liquidity needs.
Total deposits were $3.40 billion at December 31, 2014, compared with $3.19 billion at September 30, 2014. The increase in total deposits was primarily attributable to growth in time deposits, which was partially offset by a decrease in money market deposits.
CREDIT QUALITY
During the fourth quarter of 2014, the Company continued to experience a general improvement in asset quality including a decline in non-accrual and classified loans. As a result of the improved credit quality, the Company determined that no provision for losses on loans and loan commitments was required for the fourth quarter of 2014. The allowance for loan losses totaled $48.6 million, or 1.47% of gross loans (excluding loans held-for-sale), at December 31, 2014, compared to $53.1 million, or 1.67% of gross loans (excluding loans held-for-sale), at September 30, 2014. Acquired loans, included in the allowance coverage ratios, were recorded at fair value and the remaining discount on these loans was approximately $22.1 million at December 31, 2014. The coverage ratio of the allowance for loan losses to non-performing assets was 107.6% at December 31, 2014, compared with 103.2% at September 30, 2014.
Non-Performing Loans
At December 31, 2014, total non-performing loans were $37.3 million, or 1.12% of total gross loans, compared to $44.9 million, or 1.41% of total gross loans, at September 30, 2014.
The following table shows total non-performing loans by loan type:
NON-PERFORMING LOANS | | | | | | | | | | | |
(Dollars In Thousands) (Unaudited) | | Quarter Ended | |
(Net of SBA Guaranty Portions) | | Dec 31, 2014 | | Sep 30, 2014 | | Jun 30, 2014 | | Mar 31, 2014 | | Dec 31, 2013 | |
Construction | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 2,471 | |
Real Estate Secured | | 29,547 | | 37,205 | | 35,585 | | 35,988 | | 33,569 | |
Commercial & Industrial | | 7,718 | | 7,699 | | 6,769 | | 7,121 | | 1,196 | |
Consumer | | — | | 1 | | 4 | | — | | — | |
Total Non-Performing Loans | | $ | 37,265 | | $ | 44,905 | | $ | 42,358 | | $ | 43,109 | | $ | 37,236 | |
Net Charge-offs/Recoveries
During the fourth quarter of 2014, the Company had total gross charge-offs of $6.3 million and recoveries of $1.8 million which resulted in total net charge-offs of $4.5 million for the fourth quarter of 2014, compared to net recoveries of $447,000 for the third quarter of 2014. The gross charge-offs in the fourth quarter of 2014 primarily consisted of $2.7 million in charge-offs of commercial real estate loans that had previously been on non-accrual status and related to one borrower, and $1.3 million in charge-offs related to former Mirae Bank loans.
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Wilshire Bancorp Inc. — 4Q 2014 Results
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Gross charge-offs and recoveries by loan type are reflected in the tables below:
GROSS LOAN CHARGE-OFFS | | Quarter Ended | |
(Dollars In Thousands) (Unaudited) | | Dec 31, 2014 | | Sep 30, 2014 | | Jun 30, 2014 | | Mar 31, 2014 | | Dec 31, 2013 | |
| | | | | | | | | | | |
Real Estate Secured | | $ | 5,461 | | $ | 1,161 | | $ | 782 | | $ | 672 | | $ | 552 | |
Commercial & Industrial | | 852 | | 614 | | 1,021 | | 964 | | 997 | |
Consumer | | — | | — | | — | | 1 | | 2 | |
Total Loan Charge-Offs | | $ | 6,313 | | $ | 1,775 | | $ | 1,803 | | $ | 1,637 | | $ | 1,551 | |
LOAN RECOVERIES | | Quarter Ended | |
(Dollars In Thousands) (Unaudited) | | Dec 31, 2014 | | Sep 30, 2014 | | Jun 30, 2014 | | Mar 31, 2014 | | Dec 31, 2013 | |
| | | | | | | | | | | |
Real Estate Secured | | $ | 199 | | $ | 1,688 | | $ | 586 | | $ | 1,028 | | $ | 2,038 | |
Commercial & Industrial | | 1,620 | | 534 | | 408 | | 510 | | 679 | |
Consumer | | 2 | | — | | 14 | | — | | — | |
Total Loan Recoveries | | $ | 1,821 | | $ | 2,222 | | $ | 1,008 | | $ | 1,538 | | $ | 2,717 | |
Other measures of credit quality are shown in the following tables:
DELINQUENT LOANS - By Days Past Due | | | | | | | | | | | |
(Dollars In Thousands) (Unaudited) | | Quarter Ended | |
(Net of SBA Guaranty Portions) | | Dec 31, 2014 | | Sep 30, 2014 | | Jun 30, 2014 | | Mar 31, 2014 | | Dec 31, 2013 | |
30 - 59 Days Past Due | | $ | 5,165 | | $ | 4,137 | | $ | 4,556 | | $ | 5,756 | | $ | 2,846 | |
60 - 89 Days Past Due | | 1,820 | | 4,002 | | 2,992 | | 1,526 | | 2,527 | |
90 Days, and still accruing | | — | | — | | — | | — | | 167 | |
Total Delinquent Loans | | $ | 6,985 | | $ | 8,139 | | $ | 7,548 | | $ | 7,282 | | $ | 5,540 | |
TROUBLED DEBT RESTRUCTURED LOANS (“TDR”) | | | | | | | | | | | |
(Dollars In Thousands) (Unaudited) | | Quarter Ended | |
(Net of SBA Guaranty Portions) | | Dec 31, 2014 | | Sep 30, 2014 | | Jun 30, 2014 | | Mar 31, 2014 | | Dec 31, 2013 | |
Real Estate Secured | | $ | 25,096 | | $ | 31,313 | | $ | 33,349 | | $ | 34,565 | | $ | 30,008 | |
Commercial & Industrial | | 10,900 | | 11,425 | | 5,542 | | 5,563 | | 6,212 | |
Total TDR Loans | | $ | 35,996 | | $ | 42,738 | | $ | 38,891 | | $ | 40,128 | | $ | 36,220 | |
LOAN CLASSIFICATIONS | | | | | | | | | | | |
(Dollars In Thousands) (Unaudited) | | Quarter Ended | |
(Net of SBA Guaranty Portions) | | Dec 31, 2014 | | Sep 30, 2014 | | Jun 30, 2014 | | Mar 31, 2014 | | Dec 31, 2013 | |
Special Mention | | $ | 76,906 | | $ | 62,929 | | $ | 88,382 | | $ | 101,627 | | $ | 100,798 | |
Substandard | | 82,305 | | 94,854 | | 110,462 | | 127,996 | | 149,479 | |
Doubtful | | 11,952 | | 15,291 | | 18,040 | | 19,931 | | 8,015 | |
Total Criticized and Classified Loans | | $ | 171,163 | | $ | 173,074 | | $ | 216,884 | | $ | 249,554 | | $ | 258,292 | |
| | | | | | | | | | | |
Total Classified Loans | | $ | 94,257 | | $ | 110,145 | | $ | 128,502 | | $ | 147,927 | | $ | 157,494 | |
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CAPITAL RATIOS
As of December 31, 2014, 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, 2014 | | Well Capitalized
Regulatory
Requirements | | Total Excess Above
Well Capitalized
Requirements | |
Tier 1 Leverage Capital Ratio | | 12.11 | % | 5.00 | % | $ | 282,191 | |
Tier 1 Risk-Based Capital Ratio | | 14.13 | % | 6.00 | % | $ | 276,602 | |
Total Risk-Based Capital Ratio | | 15.38 | % | 10.00 | % | $ | 183,112 | |
Tangible Common Equity To Tangible Assets * | | 10.23 | % | N/A | | N/A | |
Tangible Common Equity Per Common Share * | | $ | 5.33 | | N/A | | N/A | |
| | | | | | | | | |
* “Tangible Common Equity” and “Tangible Assets” are Non-GAAP measures of financial performance. Please refer to the “Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures” table at the end of this press release for a reconciliation of Tangible Common Equity to Shareholders’ Equity and Tangible Assets to Total Assets.
CONFERENCE CALL
Management will host its quarterly conference call on January 27, 2015, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing 800-299-9630 (domestic) or 617-786-2904 (international) and providing passcode number 82609103.
ABOUT WILSHIRE BANCORP
Headquartered in Los Angeles, Wilshire Bancorp is the parent company of Wilshire Bank, which operates 33 branch offices in California, Texas, New Jersey and New York, and 6 loan production offices in Dallas, TX, Palisades Park, NJ, Atlanta, GA, Aurora, CO, Newark, CA, and Federal Way, WA, and is an SBA preferred lender nationwide. Wilshire Bank is a community bank with a focus on commercial real estate lending and general commercial banking, with its primary market encompassing the multi-ethnic populations of the Los Angeles metropolitan area. For more information, please go to www.wilshirebank.com.
FORWARD-LOOKING STATEMENTS
Statements concerning future performance, events, or any other guidance on future periods constitute forward-looking statements that are subject to a number of risks and uncertainties that might cause actual results to differ materially from stated expectations. Undue reliance should not be placed on forward-looking statements, as they are subject to risks and uncertainties, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K and our other reports filed with or furnished to the Securities and Exchange Commission. Specific factors that could cause future results to differ materially from historical performance and these forward-looking statements include, but are not limited to: (1) loan production and sales, (2) credit quality, (3) the ability to expand net interest margin, (4) the ability to continue to attract low-cost deposits, (5) success of expansion efforts, (6) competition in the marketplace, (7) political developments, war or other hostilities, (8) changes in the interest rate environment, (9) the ability of our borrowers to repay their loans, (10) the ability to maintain capital requirements and adequate sources of liquidity, (11) effects of or changes in accounting policies, (12) legislative or regulatory changes or actions, (13) the ability to attract and retain key personnel, (14) the ability to receive dividends from our subsidiaries, (15) the ability to secure confidential information through the use of computer systems and telecommunications networks, (16) weakening in the economy, specifically the real estate market, either nationally or in the states in which we do business, (17) the integration of our acquired businesses, and (18) general economic conditions. The information in this press release speaks only as of the date of this release and Wilshire Bancorp specifically disclaims any duty to update the information in this press release, expect as required by applicable law. Additional information on these and other factors that could affect financial results are included in filings by Wilshire Bancorp with the Securities and Exchange Commission.
###
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Wilshire Bancorp Inc. — 4Q 2014 Results
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CONSOLIDATED BALANCE SHEET | | December 31, | | September 30, | | Three Months | | December 31, | | Twelve Months | |
(Dollars In Thousands) (Unaudited) | | 2014 | | 2014 | | % Change | | 2013 | | % Change | |
ASSETS: | | | | | | | | | | | |
Cash and due from banks | | $ | 233,699 | | $ | 173,586 | | 35 | % | $ | 124,064 | | 88 | % |
Federal funds sold and other cash equivalents | | 254 | | 21 | | 1110 | % | 46,590 | | -99 | % |
Total Cash and Cash Equivalents | | 233,953 | | 173,607 | | 35 | % | 170,654 | | 37 | % |
| | | | | | | | | | | |
Deposits held in other financial institutions | | 8,000 | | 9,000 | | -11 | % | 21,019 | | -62 | % |
| | | | | | | | | | | |
Investment securities available for sale | | 388,367 | | 365,866 | | 6 | % | 352,437 | | 10 | % |
Investment securities held to maturity | | 26 | | 28 | | -7 | % | 35 | | -26 | % |
Total Investment Securities | | 388,393 | | 365,894 | | 6 | % | 352,472 | | 10 | % |
| | | | | | | | | | | |
Total Loans Held-For-Sale | | 11,783 | | 16,236 | | -27 | % | 47,557 | | -75 | % |
| | | | | | | | | | | |
Real estate construction | | 21,248 | | 40,062 | | -47 | % | 39,268 | | -46 | % |
Residential real estate | | 183,665 | | 174,466 | | 5 | % | 124,373 | | 48 | % |
Commercial real estate | | 2,471,586 | | 2,418,776 | | 2 | % | 2,190,154 | | 13 | % |
Commercial and industrial | | 610,762 | | 515,831 | | 18 | % | 448,379 | | 36 | % |
Consumer | | 21,036 | | 12,810 | | 64 | % | 14,668 | | 43 | % |
Total loans receivable, net of deferred fees and costs | | 3,308,297 | | 3,161,945 | | 5 | % | 2,816,842 | | 17 | % |
Allowance for loan losses | | (48,624 | ) | (53,116 | ) | -8 | % | (53,563 | ) | -9 | % |
Loans Receivable, Net of Allowance for Loan Losses | | 3,259,673 | | 3,108,829 | | 5 | % | 2,763,279 | | 18 | % |
| | | | | | | | | | | |
Accrued interest receivable | | 8,792 | | 8,324 | | 6 | % | 8,350 | | 5 | % |
Due from customers on acceptances | | 5,611 | | 10,350 | | -46 | % | 1,517 | | 270 | % |
Other real estate owned | | 7,922 | | 6,565 | | 21 | % | 7,600 | | 4 | % |
Premises and equipment | | 13,881 | | 12,380 | | 12 | % | 13,862 | | 0 | % |
Federal home loan bank (FHLB) stock, at cost | | 16,539 | | 16,539 | | 0 | % | 15,983 | | 3 | % |
Cash surrender value of life insurance | | 23,330 | | 22,945 | | 2 | % | 22,519 | | 4 | % |
Investment in affordable housing partnerships | | 44,077 | | 45,017 | | -2 | % | 43,316 | | 2 | % |
Deferred income taxes | | 22,271 | | 27,656 | | -19 | % | 39,672 | | -44 | % |
Servicing assets | | 18,031 | | 17,927 | | 1 | % | 16,108 | | 12 | % |
Goodwill | | 67,473 | | 67,473 | | 0 | % | 67,528 | | 0 | % |
FDIC indemnification asset | | — | | — | | 0 | % | 4,856 | | -100 | % |
Other assets | | 25,740 | | 27,056 | | -5 | % | 21,443 | | 20 | % |
TOTAL ASSETS | | $ | 4,155,469 | | $ | 3,935,798 | | 6 | % | $ | 3,617,735 | | 15 | % |
| | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY: | | | | | | | | | | | |
Non-interest bearing demand deposits | | $ | 915,413 | | $ | 914,667 | | 0 | % | $ | 832,152 | | 10 | % |
Savings and interest checking | | 160,717 | | 156,669 | | 3 | % | 145,549 | | 10 | % |
Money market deposits | | 765,892 | | 772,902 | | -1 | % | 780,280 | | -2 | % |
Time deposits in denomination of $100,000 or more | | 1,291,844 | | 1,092,058 | | 18 | % | 870,074 | | 48 | % |
Other time deposits | | 267,393 | | 249,058 | | 7 | % | 243,455 | | 10 | % |
Total Deposits | | 3,401,259 | | 3,185,354 | | 7 | % | 2,871,510 | | 18 | % |
| | | | | | | | | | | |
FHLB borrowings | | 150,000 | | 150,000 | | 0 | % | 190,325 | | -21 | % |
Acceptance outstanding | | 5,611 | | 10,350 | | -46 | % | 1,517 | | 270 | % |
Junior subordinated debentures | | 71,779 | | 71,722 | | 0 | % | 71,550 | | 0 | % |
Accrued interest payable | | 2,228 | | 2,249 | | -1 | % | 2,418 | | -8 | % |
Other liabilities | | 35,181 | | 40,415 | | -13 | % | 40,997 | | -14 | % |
Total Liabilities | | 3,666,058 | | 3,460,090 | | 6 | % | 3,178,317 | | 15 | % |
| | | | | | | | | | | |
Common stock | | 232,001 | | 231,715 | | 0 | % | 229,836 | | 1 | % |
Retained earnings | | 252,957 | | 240,770 | | 5 | % | 209,605 | | 21 | % |
Accumulated other comprehensive income | | 4,453 | | 3,223 | | 38 | % | (23 | ) | N/A | |
Total Shareholders’ Equity | | 489,411 | | 475,708 | | 3 | % | 439,418 | | 11 | % |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | | $ | 4,155,469 | | $ | 3,935,798 | | 6 | % | $ | 3,617,735 | | 15 | % |
(continued)
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January 26, 2015
Page 8
CONSOLIDATED STATEMENT OF OPERATIONS | | Quarter Ended | | Three Mths | | Quarter Ended | | Twelve Mths | |
(Dollars In Thousands, Except Per Share Data) (Unaudited) | | December 31, 2014 | | September 30, 2014 | | % Change | | December 31, 2013 | | % Change | |
| | | | | | | | | | | |
INTEREST INCOME | | | | | | | | | | | |
Interest and fees on loans | | $ | 40,709 | | $ | 39,217 | | 4 | % | $ | 33,954 | | 20 | % |
Interest on investment securities | | 2,053 | | 2,018 | | 2 | % | 2,113 | | -3 | % |
Interest on federal funds sold and others | | 155 | | 91 | | 70 | % | 120 | | 29 | % |
Total Interest Income | | 42,917 | | 41,326 | | 4 | % | 36,187 | | 19 | % |
| | | | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | | |
Deposits | | 4,783 | | 3,981 | | 20 | % | 3,446 | | 39 | % |
FHLB advances and other borrowings | | 667 | | 577 | | 16 | % | 413 | | 62 | % |
Total Interest Expense | | 5,450 | | 4,558 | | 20 | % | 3,859 | | 41 | % |
| | | | | | | | | | | |
Net interest income before provision for losses on loans and loan commitments | | 37,467 | | 36,768 | | 2 | % | 32,328 | | 16 | % |
Provision for losses on loans and loan commitments | | — | | — | | 0 | % | — | | 0 | % |
| | | | | | | | | | | |
Net interest income after provision for losses on loans and loan commitments | | 37,467 | | 36,768 | | 2 | % | 32,328 | | 16 | % |
| | | | | | | | | | | |
NONINTEREST INCOME | | | | | | | | | | | |
Service charges on deposits | | 3,105 | | 3,268 | | -5 | % | 3,002 | | 3 | % |
Gain on sales of loans, net | | 3,528 | | 2,418 | | 46 | % | 3,980 | | -11 | % |
Gain on sale/call of investment securities | | — | | — | | 0 | % | 4 | | -100 | % |
Other | | 3,280 | | 3,912 | | -16 | % | 2,328 | | 41 | % |
Total Noninterest Income | | 9,913 | | 9,598 | | 3 | % | 9,314 | | 6 | % |
| | | | | | | | | | | |
NONINTEREST EXPENSES | | | | | | | | | | | |
Salaries and employee benefits | | 12,359 | | 12,261 | | 1 | % | 12,948 | | -5 | % |
FDIC indemnification impairment | | — | | — | | 0 | % | — | | 0 | % |
Occupancy and equipment | | 3,385 | | 3,311 | | 2 | % | 2,712 | | 25 | % |
Data processing | | 1,030 | | 1,210 | | -15 | % | 920 | | 12 | % |
Merger related costs | | — | | — | | 0 | % | 1,785 | | -100 | % |
Other | | 6,694 | | 6,457 | | 4 | % | 6,288 | | 6 | % |
Total Noninterest Expenses | | 23,468 | | 23,239 | | 1 | % | 24,653 | | -5 | % |
| | | | | | | | | | | |
Income before income taxes | | 23,912 | | 23,127 | | 3 | % | 16,989 | | 41 | % |
Income taxes provision | | 7,809 | | 7,998 | | -2 | % | 6,075 | | 29 | % |
NET INCOME | | $ | 16,103 | | $ | 15,129 | | 6 | % | $ | 10,914 | | 48 | % |
| | | | | | | | | | | |
PER COMMON SHARE INFORMATION: | | | | | | | | | | | |
Basic income per common share | | $ | 0.21 | | $ | 0.19 | | 6 | % | $ | 0.15 | | 40 | % |
Diluted income per common share | | $ | 0.20 | | $ | 0.19 | | 6 | % | $ | 0.15 | | 40 | % |
| | | | | | | | | | | |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | | | | | |
Basic | | 78,315,686 | | 78,302,251 | | | | 74,082,711 | | | |
Diluted | | 78,628,965 | | 78,619,592 | | | | 74,462,668 | | | |
(continued)
8
Wilshire Bancorp Inc. — 4Q 2014 Results
January 26, 2015
Page 9
CONSOLIDATED STATEMENT OF OPERATIONS | | Year Ended | | Twelve Months | |
(Dollars In Thousands, Except Per Share Data) (Unaudited) | | December 31, 2014 | | December 31, 2013 | | % Change | |
| | | | | | | |
INTEREST INCOME | | | | | | | |
Interest and fees on loans | | $ | 155,020 | | $ | 115,722 | | 34 | % |
Interest on investment securities | | 8,195 | | 7,460 | | 10 | % |
Interest on federal funds sold | | 489 | | 557 | | -12 | % |
Total Interest Income | | 163,704 | | 123,739 | | 32 | % |
| | | | | | | |
INTEREST EXPENSE | | | | | | | |
Deposits | | 15,926 | | 11,968 | | 33 | % |
FHLB advances and other borrowings | | 2,241 | | 1,441 | | 56 | % |
Total Interest Expense | | 18,167 | | 13,409 | | 35 | % |
| | | | | | | |
Net interest income before provision for losses on loans and loan commitments | | 145,537 | | 110,330 | | 32 | % |
Provision for losses on loans and loan commitments | | — | | — | | 0 | % |
| | | | | | | |
Net interest income after provision for losses on loans and loan commitments | | 145,537 | | 110,330 | | 32 | % |
| | | | | | | |
NONINTEREST INCOME | | | | | | | |
Service charges on deposits | | 12,693 | | 11,412 | | 11 | % |
Gain on sales of loans, net | | 14,962 | | 13,415 | | 12 | % |
Gain on sale/call of investment securities | | — | | 19 | | -100 | % |
Other | | 13,586 | | 9,337 | | 46 | % |
Total Noninterest Income | | 41,241 | | 34,183 | | 21 | % |
| | | | | | | |
NONINTEREST EXPENSES | | | | | | | |
Salaries and employee benefits | | 49,724 | | 40,131 | | 24 | % |
FDIC indemnification impairment | | 597 | | — | | 0 | % |
Occupancy and equipment | | 13,371 | | 8,851 | | 51 | % |
Data processing | | 3,998 | | 2,801 | | 43 | % |
Merger related costs | | 3,577 | | 2,797 | | 28 | % |
Other | | 26,247 | | 22,276 | | 18 | % |
Total Noninterest Expenses | | 97,514 | | 76,856 | | 27 | % |
| | | | | | | |
Income before income taxes | | 89,264 | | 67,657 | | 32 | % |
Income taxes provision | | 30,255 | | 22,281 | | 36 | % |
NET INCOME | | $ | 59,009 | | $ | 45,376 | | 30 | % |
| | | | | | | |
PER COMMON SHARE INFORMATION: | | | | | | | |
Basic income per common share | | $ | 0.75 | | $ | 0.63 | | 19 | % |
Diluted income per common share | | $ | 0.75 | | $ | 0.63 | | 19 | % |
| | | | | | | |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | |
Basic | | 78,250,901 | | 71,771,116 | | | |
Diluted | | 78,591,374 | | 72,037,516 | | | |
(continued)
9
Wilshire Bancorp Inc. — 4Q 2014 Results
January 26, 2015
Page 10
SUMMARY OF FINANCIAL DATA | | | | | | | |
(Dollars In Thousands, Except Per Share Data) (Unaudited) | | Quarter Ended | |
AVERAGE BALANCES | | December 31, 2014 | | September 30, 2014 | | December 31, 2013 | |
Average Assets | | $ | 4,049,930 | | $ | 3,757,520 | | $ | 3,306,168 | |
Average Equity | | 485,482 | | 472,697 | | 401,153 | |
Average Net Loans | | 3,200,538 | | 3,061,900 | | 2,626,557 | |
Average Deposits | | 3,292,557 | | 3,017,301 | | 2,610,689 | |
Average Time Deposits of $100,000 or more | | 1,211,738 | | 930,220 | | 801,836 | |
Average FHLB & Other Borrowings | | 150,000 | | 150,696 | | 185,182 | |
Average Interest Earning Assets | | 3,764,271 | | 3,469,161 | | 3,093,084 | |
| | | | | | | | | | |
| | Year Ended | |
AVERAGE BALANCES | | December 31, 2014 | | | | December 31, 2013 | |
Average Assets | | $ | 3,762,400 | | | | $ | 2,901,224 | |
Average Equity | | 466,398 | | | | 366,357 | |
Average Net Loans | | 3,017,409 | | | | 2,285,623 | |
Average Deposits | | 3,021,392 | | | | 2,285,148 | |
Average Time Deposits of $100,000 or more | | 970,481 | | | | 658,483 | |
Average FHLB & Other Borrowings | | 160,950 | | | | 152,171 | |
Average Interest Earning Assets | | 3,479,993 | | | | 2,731,077 | |
| | | | | | | | | |
| | Quarter Ended | |
PROFITABILITY | | December 31, 2014 | | September 30, 2014 | | December 31, 2013 | |
Annualized Return on Average Assets | | 1.59 | % | 1.61 | % | 1.32 | % |
Annualized Return on Average Equity | | 13.27 | % | 12.80 | % | 10.88 | % |
Efficiency Ratio | | 49.53 | % | 50.12 | % | 59.20 | % |
Annualized Operating Expense/Average Assets | | 2.32 | % | 2.47 | % | 2.98 | % |
Annualized Net Interest Margin | | 4.00 | % | 4.26 | % | 4.20 | % |
| | Year Ended | |
PROFITABILITY | | December 31, 2014 | | | | December 31, 2013 | |
Annualized Return on Average Assets | | 1.57 | % | | | 1.56 | % |
Annualized Return on Average Equity | | 12.65 | % | | | 12.39 | % |
Efficiency Ratio | | 52.21 | % | | | 53.18 | % |
Annualized Operating Expense/Average Assets | | 2.59 | % | | | 2.65 | % |
Annualized Net Interest Margin | | 4.20 | % | | | 4.07 | % |
DEPOSIT COMPOSITION | | December 31, 2014 | | Cost of
Funds | | September 30, 2014 | | Cost of
Funds | | December 31, 2013 | | Cost of
Funds | |
Noninterest Bearing Demand Deposits | | 26.9 | % | 0.00 | % | 28.7 | % | 0.00 | % | 29.0 | % | 0.00 | % |
Savings & Interest Checking | | 4.7 | % | 1.33 | % | 4.9 | % | 1.31 | % | 5.1 | % | 1.35 | % |
Money Market Deposits | | 22.5 | % | 0.71 | % | 24.3 | % | 0.68 | % | 27.1 | % | 0.65 | % |
Time Deposits of $100,000 or More | | 38.0 | % | 0.79 | % | 34.3 | % | 0.72 | % | 30.3 | % | 0.69 | % |
Other Time Deposits | | 7.9 | % | 0.84 | % | 7.8 | % | 0.79 | % | 8.5 | % | 0.81 | % |
Total Deposits | | 100.0 | % | 0.58 | % | 100.0 | % | 0.53 | % | 100.0 | % | 0.53 | % |
CAPITAL RATIOS | | December 31, 2014 | | September 30, 2014 | | December 31, 2013 | |
Tier 1 Leverage Ratio | | 12.11 | % | 12.72 | % | 13.44 | % |
Tier 1 Risk-Based Capital Ratio | | 14.13 | % | 14.37 | % | 14.79 | % |
Total Risk-Based Capital Ratio | | 15.38 | % | 15.63 | % | 16.05 | % |
Total Shareholders’ Equity | | $ | 489,411 | | $ | 475,708 | | $ | 439,418 | |
Book Value Per Common Share | | $ | 6.25 | | $ | 6.07 | | $ | 5.63 | |
Tangible Common Equity Per Common Share * | | $ | 5.33 | | $ | 5.16 | | $ | 4.70 | |
Tangible Common Equity to Tangible Assets ** | | 10.23 | % | 10.45 | % | 10.34 | % |
* Tangible common equity excludes goodwill, other intangible assets
** Tangible assets excludes goodwill and intangible assets
(continued)
10
Wilshire Bancorp Inc. — 4Q 2014 Results
January 26, 2015
Page 11
ALLOWANCE FOR LOAN LOSSES | | Quarter Ended | |
(Dollars In Thousands) (Unaudited) | | December 31, 2014 | | September 30, 2014 | | June 30, 2014 | | March 31, 2014 | | December 31, 2013 | |
| | | | | | | | | | | |
Balance at Beginning of Period | | $ | 53,116 | | $ | 52,669 | | $ | 53,464 | | $ | 53,563 | | $ | 52,397 | |
Provision for Losses on Loans | | — | | — | | — | | — | | — | |
Recoveries on Loans Previously Charged-off | | 1,821 | | 2,222 | | 1,008 | | 1,538 | | 2,717 | |
Gross Loan Charge-offs | | (6,313 | ) | (1,775 | ) | (1,803 | ) | (1,637 | ) | (1,551 | ) |
Balance at End of Period | | $ | 48,624 | | $ | 53,116 | | $ | 52,669 | | $ | 53,464 | | $ | 53,563 | |
| | | | | | | | | | | |
Net Loan Charge-offs/Average Net Loans | | 0.14 | % | -0.01 | % | 0.03 | % | 0.00 | % | -0.04 | % |
Charge-offs/Average Total Loans | | 0.20 | % | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % |
Allowance for Loan Losses/Gross Loans* | | 1.47 | % | 1.67 | % | 1.77 | % | 1.86 | % | 1.90 | % |
Allowance for Loan Losses/Non-accrual Loans | | 130.48 | % | 118.29 | % | 124.34 | % | 124.02 | % | 144.50 | % |
Allowance for Loan Losses/Non-performing Loans | | 130.48 | % | 118.29 | % | 124.34 | % | 124.02 | % | 143.85 | % |
Allowance for Loan Losses/Non-performing Assets | | 107.61 | % | 103.20 | % | 107.41 | % | 102.66 | % | 119.46 | % |
Allowance for Loan Losses/Classified Loans | | 51.59 | % | 48.22 | % | 34.01 | % | 34.01 | % | 34.01 | % |
* Excluding held-for-sale loans
NON-PERFORMING ASSETS | | | | | | | | | | | |
(Dollars In Thousands, Net of SBA Guaranty) | | Quarter Ended | |
(Unaudited) | | December 31, 2014 | | September 30, 2014 | | June 30, 2014 | | March 31, 2014 | | December 31, 2013 | |
| | | | | | | | | | | |
Non-accrual Loans | | $ | 37,265 | | $ | 44,905 | | $ | 42,358 | | $ | 43,109 | | $ | 37,068 | |
Loans 90 days or more past due and still accruing | | — | | — | | — | | — | | 168 | |
Total Non-performing Loans | | 37,265 | | 44,905 | | 42,358 | | 43,109 | | 37,236 | |
| | | | | | | | | | | |
Total OREO | | 7,922 | | 6,565 | | 6,676 | | 8,969 | | 7,600 | |
| | | | | | | | | | | |
Total Non-performing Assets | | $ | 45,187 | | $ | 51,470 | | $ | 49,034 | | $ | 52,078 | | $ | 44,836 | |
| | | | | | | | | | | |
Total Non-performing Loans/Gross Loans | | 1.12 | % | 1.41 | % | 1.42 | % | 1.48 | % | 1.30 | % |
Total Non-performing Assets/Total Assets | | 1.09 | % | 1.31 | % | 1.33 | % | 1.43 | % | 1.24 | % |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS | | Quarter Ended | |
(Dollars In Thousands) (Unaudited) | | December 31, 2014 | | September 30, 2014 | | December 31, 2013 | |
| | | | | | | |
Balance at beginning of period | | $ | 1,061 | | $ | 1,061 | | $ | 1,023 | |
Provision for losses on off-balance sheet items | | — | | — | | 38 | |
Balance at end of period | | $ | 1,061 | | $ | 1,061 | | $ | 1,061 | |
| | | | | | | |
| | Year Ended | |
| | December 31, 2014 | | December 31, 2013 | |
| | | | | |
Balance at beginning of period | | $ | 1,061 | | $ | 1,023 | |
Provision for losses on off-balance sheet items | | — | | 38 | |
Balance at end of period | | $ | 1,061 | | $ | 1,061 | |
| | | | | |
(continued)
11
Wilshire Bancorp Inc. — 4Q 2014 Results
January 26, 2015
Page 12
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
| | For the Quarter Ended | |
| | December 31, 2014 | | September 30, 2014 | | December 31, 2013 | |
| | | | 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 | | $ | 2,666,855 | | $ | 33,339 | | 5.00 | % | $ | 2,582,668 | | $ | 32,868 | | 5.09 | % | $ | 2,211,155 | | $ | 27,780 | | 5.03 | % |
Commercial Loans | | 530,293 | | 5,717 | | 4.31 | % | 477,493 | | 5,381 | | 4.51 | % | 411,421 | | 5,143 | | 5.00 | % |
Consumer Loans | | 13,162 | | 129 | | 3.92 | % | 10,942 | | 110 | | 4.02 | % | 10,647 | | 100 | | 3.76 | % |
Total Gross Loans | | 3,210,310 | | 39,185 | | 4.88 | % | 3,071,103 | | 38,359 | | 5.00 | % | 2,633,223 | | 33,023 | | 5.02 | % |
Deferred Fees and Costs \ Loan Fees | | (9,772 | ) | 1,524 | | | | (9,203 | ) | 858 | | | | (6,666 | ) | 931 | | | |
Total Loans * | | 3,200,538 | | 40,709 | | 5.09 | % | 3,061,900 | | 39,217 | | 5.12 | % | 2,626,557 | | 33,954 | | 5.17 | % |
| | | | | | | | | | | | | | | | | | | |
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS: | | | | | | | | | | | | | | | | | | | |
Investment Securities** | | 366,229 | | 2,053 | | 2.43 | % | 348,663 | | 2,018 | | 2.51 | % | 360,675 | | 2,113 | | 2.55 | % |
Deposits Held In Other Institutions | | 8,402 | | 34 | | 1.62 | % | 18,584 | | 66 | | 1.42 | % | — | | — | | 0.00 | % |
Federal Funds Sold & Others | | 189,102 | | 121 | | 0.26 | % | 40,014 | | 25 | | 0.25 | % | 105,852 | | 120 | | 0.45 | % |
Total Investment Securities and Other Earning Assets | | 563,733 | | 2,208 | | 1.69 | % | 407,261 | | 2,109 | | 2.24 | % | 466,527 | | 2,233 | | 2.07 | % |
| | | | | | | | | | | | | | | | | | | |
TOTAL INTEREST-EARNING ASSETS | | $ | 3,764,271 | | $ | 42,917 | | 4.58 | % | $ | 3,469,161 | | $ | 41,326 | | 4.79 | % | $ | 3,093,084 | | $ | 36,187 | | 4.70 | % |
| | | | | | | | | | | | | | | | | | | |
Total Non-Interest Earning Assets | | 285,659 | | | | | | 288,359 | | | | | | 213,084 | | | | | |
TOTAL ASSETS | | $ | 4,049,930 | | | | | | $ | 3,757,520 | | | | | | $ | 3,306,168 | | | | | |
| | | | | | | | | | | | | | | | | | | |
INTEREST BEARING LIABILITIES | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
INTEREST-BEARING DEPOSITS: | | | | | | | | | | | | | | | | | | | |
Money Market | | $ | 748,031 | | $ | 1,320 | | 0.71 | % | $ | 775,914 | | $ | 1,322 | | 0.68 | % | $ | 687,948 | | $ | 1,121 | | 0.65 | % |
NOW | | 31,364 | | 17 | | 0.22 | % | 30,728 | | 15 | | 0.20 | % | 29,212 | | 15 | | 0.21 | % |
Savings | | 127,610 | | 510 | | 1.60 | % | 124,674 | | 495 | | 1.59 | % | 109,304 | | 452 | | 1.65 | % |
Time Deposits of $100,000 or More | | 1,211,738 | | 2,387 | | 0.79 | % | 930,220 | | 1,681 | | 0.72 | % | 801,836 | | 1,384 | | 0.69 | % |
Other Time Deposits | | 262,777 | | 549 | | 0.84 | % | 236,724 | | 468 | | 0.79 | % | 231,821 | | 474 | | 0.82 | % |
Total Interest Bearing Deposits | | 2,381,520 | | 4,783 | | 0.80 | % | 2,098,260 | | 3,981 | | 0.76 | % | 1,860,121 | | 3,446 | | 0.74 | % |
| | | | | | | | | | | | | | | | | | | |
BORROWINGS: | | | | | | | | | | | | | | | | | | | |
FHLB Advances and Other Borrowings | | 150,000 | | 235 | | 0.63 | % | 150,696 | | 146 | | 0.39 | % | 185,182 | | 64 | | 0.14 | % |
Junior Subordinated Debentures | | 71,742 | | 432 | | 2.41 | % | 71,687 | | 431 | | 2.41 | % | 66,275 | | 349 | | 2.11 | % |
Total Borrowings | | 221,742 | | 667 | | 1.20 | % | 222,383 | | 577 | | 1.04 | % | 251,457 | | 413 | | 0.66 | % |
| | | | | | | | | | | | | | | | | | | |
TOTAL INTEREST BEARING LIABILITIES | | $ | 2,603,262 | | $ | 5,450 | | 0.84 | % | $ | 2,320,643 | | $ | 4,558 | | 0.79 | % | $ | 2,111,578 | | $ | 3,859 | | 0.73 | % |
| | | | | | | | | | | | | | | | | | | |
Non-Interest Bearing Deposits | | 911,037 | | | | | | 919,041 | | | | | | 750,568 | | | | | |
Other Liabilities | | 50,149 | | | | | | 45,139 | | | | | | 42,869 | | | | | |
Shareholders’ Equity | | 485,482 | | | | | | 472,697 | | | | | | 401,153 | | | | | |
TOTAL LIABILITIES AND EQUITY | | $ | 4,049,930 | | | | | | $ | 3,757,520 | | | | | | $ | 3,306,168 | | | | | |
| | | | | | | | | | | | | | | | | | | |
NET INTEREST INCOME | | | | $ | 37,467 | | | | | | $ | 36,768 | | | | | | $ | 32,328 | | | |
| | | | | | | | | | | | | | | | | | | |
NET INTEREST SPREAD | | | | | | 3.74 | % | | | | | 4.00 | % | | | | | 3.97 | % |
| | | | | | | | | | | | | | | | | | | |
NET INTEREST MARGIN | | | | | | 4.00 | % | | | | | 4.26 | % | | | | | 4.20 | % |
| | | | | | | | | | | | | | | | | | | |
* Allowance for loan losses excluded from average total loans and earning assets
** Tax equivalent ratios for investment securities
(continued)
12
Wilshire Bancorp Inc. — 4Q 2014 Results
January 26, 2015
Page 13
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
| | For the Year Ended | |
| | December 31, 2014 | | December 31, 2013 | |
| | | | Interest | | Average | | | | Interest | | Average | |
| | Average | | Income/ | | Yield/ | | Average | | Income/ | | Yield/ | |
| | Balance | | Expense | | Rate | | Balance | | Expense | | Rate | |
INTEREST EARNING ASSETS | | | | | | | | | | | | | |
LOANS: | | | | | | | | | | | | | |
Real Estate Loans | | $ | 2,549,100 | | $ | 128,969 | | 5.06 | % | $ | 1,915,929 | | $ | 95,060 | | 4.96 | % |
Commercial Loans | | 464,911 | | 21,136 | | 4.55 | % | 364,462 | | 17,162 | | 4.71 | % |
Consumer Loans | | 12,308 | | 490 | | 3.98 | % | 10,940 | | 327 | | 2.99 | % |
Total Gross Loans | | 3,026,319 | | 150,595 | | 4.98 | % | 2,291,331 | | 112,549 | | 4.91 | % |
Deferred Fees and Costs \ Loan Fees | | (8,910 | ) | 4,425 | | | | (5,708 | ) | 3,173 | | | |
Total Loans * | | 3,017,409 | | 155,020 | | 5.14 | % | 2,285,623 | | 115,722 | | 5.06 | % |
| | | | | | | | | | | | | |
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS: | | | | | | | | | | | | | |
Investment Securities** | | 350,661 | | 8,195 | | 2.54 | % | 330,238 | | 7,460 | | 2.49 | % |
Deposits Held In Other Institutions | | 17,105 | | 238 | | 1.39 | % | — | | — | | 0.00 | % |
Federal Funds Sold & Others | | 94,818 | | 251 | | 0.27 | % | 115,216 | | 557 | | 0.48 | % |
Total Investment Securities and Other Earning Assets | | 462,584 | | 8,684 | | 2.03 | % | 445,454 | | 8,017 | | 1.97 | % |
TOTAL INTEREST-EARNING ASSETS | | $ | 3,479,993 | | $ | 163,704 | | 4.72 | % | $ | 2,731,077 | | $ | 123,739 | | 4.56 | % |
Total Non-Interest Earning Assets | | 282,407 | | | | | | 170,147 | | | | | |
TOTAL ASSETS | | $ | 3,762,400 | | | | | | $ | 2,901,224 | | | | | |
| | | | | | | | | | | | | |
INTEREST BEARING LIABILITIES | | | | | | | | | | | | | |
INTEREST-BEARING DEPOSITS: | | | | | | | | | | | | | |
Money Market | | $ | 770,316 | | $ | 5,219 | | 0.68 | % | $ | 630,050 | | $ | 3,996 | | 0.63 | % |
NOW | | 32,240 | | 63 | | 0.20 | % | 27,656 | | 55 | | 0.20 | % |
Savings | | 121,878 | | 1,926 | | 1.58 | % | 103,102 | | 1,801 | | 1.75 | % |
Time Deposits of $100,000 or More | | 970,481 | | 6,849 | | 0.71 | % | 658,483 | | 4,300 | | 0.65 | % |
Other Time Deposits | | 244,144 | | 1,869 | | 0.77 | % | 225,900 | | 1,816 | | 0.80 | % |
Total Interest Bearing Deposits | | 2,139,059 | | 15,926 | | 0.75 | % | 1,645,191 | | 11,968 | | 0.73 | % |
| | | | | | | | | | | | | |
BORROWINGS: | | | | | | | | | | | | | |
FHLB Advances and Other Borrowings | | 160,950 | | 522 | | 0.32 | % | 152,171 | | 244 | | 0.16 | % |
Junior Subordinated Debentures | | 71,659 | | 1,719 | | 2.40 | % | 62,971 | | 1,197 | | 1.90 | % |
Total Borrowings | | 232,609 | | 2,241 | | 0.96 | % | 215,142 | | 1,441 | | 0.67 | % |
| | | | | | | | | | | | | |
TOTAL INTEREST BEARING LIABILITIES | | $ | 2,371,668 | | $ | 18,167 | | 0.77 | % | $ | 1,860,333 | | $ | 13,409 | | 0.72 | % |
Non-Interest Bearing Deposits | | 882,333 | | | | | | 639,957 | | | | | |
Other Liabilities | | 42,001 | | | | | | 34,577 | | | | | |
Shareholders’ Equity | | 466,398 | | | | | | 366,357 | | | | | |
TOTAL LIABILITIES AND EQUITY | | $ | 3,762,400 | | | | | | $ | 2,901,224 | | | | | |
NET INTEREST INCOME | | | | $ | 145,537 | | | | | | $ | 110,330 | | | |
NET INTEREST SPREAD | | | | | | 3.96 | % | | | | | 3.84 | % |
NET INTEREST MARGIN | | | | | | 4.20 | % | | | | | 4.07 | % |
* Allowance for loan losses excluded from average total loans and earning assets
** Tax equivalent ratios for investment securities
(continued)
13
Wilshire Bancorp Inc. — 4Q 2014 Results
January 26, 2015
Page 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 | |
| | December 31, 2014 | | September 30, 2014 | | December 31, 2013 | |
Total shareholders’ equity | | $ | 489,411 | | $ | 475,708 | | $ | 439,418 | |
Goodwill and other intangible assets, net | | (71,628 | ) | (71,888 | ) | (72,752 | ) |
Tangible common equity | | $ | 417,783 | | $ | 403,820 | | $ | 366,666 | |
| | | | | | | |
Total assets | | $ | 4,155,469 | | $ | 3,935,798 | | $ | 3,617,735 | |
Goodwill and other intangible assets, net | | (71,628 | ) | (71,888 | ) | (72,752 | ) |
Tangible assets | | $ | 4,083,841 | | $ | 3,863,910 | | $ | 3,544,983 | |
| | | | | | | |
Common shares outstanding | | 78,322,462 | | 78,306,839 | | 78,061,307 | |
NET INTEREST MARGIN EXCLUDING THE EFFECT OF ACQUISITION ACCOUNTING ADJUSTMENTS
(Dollars In Thousands) (Unaudited)
| | Quarter Ended | |
| | December 31, 2014 | | September 30, 2014 | | December 31, 2013 | |
Net interest margin, excluding effect of acquisition accounting adjustments for Saehan Bancorp and BankAsiana | | 3.74 | % | 3.89 | % | 3.91 | % |
Acquisition accounting adjustments: | | | | | | | |
Loan discount accretion | | 0.25 | % | 0.34 | % | 0.26 | % |
Time deposit premium amortization | | 0.02 | % | 0.01 | % | 0.03 | % |
FHLB borrowing premium amortization | | 0.00 | % | 0.03 | % | 0.00 | % |
Junior subordinated debt discount accretion | | -0.01 | % | -0.01 | % | 0.00 | % |
Reported net interest margin | | 4.00 | % | 4.26 | % | 4.20 | % |
| | | | | | | |
Loan yield, excluding effect of acquisition accounting adjustments for Saehan Bancorp and BankAsiana | | 4.79 | % | 4.74 | % | 4.86 | % |
Acquisition accounting adjustments: | | | | | | | |
Loan discount accretion | | 0.30 | % | 0.38 | % | 0.31 | % |
Reported loan yield | | 5.09 | % | 5.12 | % | 5.17 | % |
* Tangible Common Equity, Tangible Assets, and Net Interest Margin and Loan Yields Excluding The Effect of Acquisition Accounting Adjustments are Non-GAAP financial measures. Management believes that presentation of non-GAAP financial information included in this press release are meaningful and useful in understanding the business metrics of the Company’s operations. We provide non-GAAP financial information for informational purposes and to enhance an understanding of the Company’s GAAP consolidated financial statements. Readers should consider this non-GAAP information in addition to, but not instead or as superior to, the Company’s financial statements in accordance with GAAP. Non-GAAP financial information presented by us may be determined or calculated differently by other companies, limiting the usefulness of non-GAAP measures for comparative purposes
(concluded)
14
