Exhibit 99.1
WILSHIRE BANCORP, INC. CONTACT: Alex Ko, EVP & CFO, (213) 427-6560 www.wilshirebank.com | 
| NEWS RELEASE |
Wilshire Bancorp Reports Net Income of $13.9 Million or
$0.18 per Share for Fourth Quarter 2015
LOS ANGELES, January 25, 2016 - Wilshire Bancorp, Inc. (NASDAQ: WIBC) (the “Company”), the holding company for Wilshire Bank (the “Bank”), today reported net income of $13.9 million, or $0.18 per diluted common share, for the quarter ended December 31, 2015. This compares to net income of $16.1 million, or $0.20 per diluted common share, for the same period of the prior year, and net income of $13.3 million, or $0.17 per diluted common share, for the third quarter of 2015. Excluding $994,000 in non-deductible merger-related costs related to the BBCN Bancorp Inc. (“BBCN”) merger of equals, net income was $14.9 million, or $0.19 per diluted common share, for the fourth quarter of 2015.*
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, “We finished 2015 with excellent momentum, generating more than $500 million in loan originations, a historical high. During the fourth quarter, we received strong contributions from most of our major lending areas including commercial real estate, commercial and industrial, and Small Business Administration (“SBA”). With our strong loan production in the second half of the year, we were able to increase our total loan portfolio by 16% in 2015, while experiencing positive trends in asset quality.”
“We were also able to effectively redeploy a significant portion of our excess liquidity during the fourth quarter by funding our strong loan production, investing in our securities portfolio, and allowing certain higher cost deposits to run-off. As a result, our net interest margin increased seven basis points during the fourth quarter to 3.56%.”
“We are very excited about our pending merger of equals with BBCN Bancorp and we look forward to the opportunity to better serve our markets as part of the premier Korean-American bank in the United States,” said Mr. Yoo.
Q4 2015 Summary
§ Net income totaled $13.9 million, or $0.18 per diluted common share, for the fourth quarter of 2015
§ Return on average assets of 1.18% and return on average equity of 10.43% for the fourth quarter of 2015
§ Net interest margin of 3.56% for the fourth quarter of 2015, an increase from 3.49% for the third quarter of 2015
§ Improvement in credit quality from the third of 2015 to fourth quarter of 2015 with a decline in non-accrual, delinquencies, TDR, and classified loans
§ Net recoveries increased from $795,000 for the third quarter of 2015, to $2.3 million for the fourth quarter of 2015
§ Loan originations of $502.9 million during the fourth quarter of 2015 compared to $327.4 million for the fourth quarter of 2014
§ Loans receivable (net of deferred fees and costs) totaled $3.82 billion at December 31, 2015, an increase of 15% from $3.31 billion at December 31, 2014
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January 25, 2016
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§ Total deposits were $3.84 billion at December 31, 2015, an increase of 13% from $3.40 billion at December 31, 2014
§ Demand deposits totaled $1.09 billion at December 31, 2015, an increase of 19% from $915.4 million at December 31, 2014
§ Merger-related costs of $994,000 related to the pending merger of equals with BBCN
* “Net income and earnings per share before merger-related costs” 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 Net income and earnings per share before merger-related costs to Net income and earnings per share.
STATEMENT OF OPERATIONS
Net interest income before provision for losses on loans and loan commitments totaled $39.4 million for the fourth quarter of 2015, an increase of 5.2% from $37.5 million for both the fourth quarter of 2014 and the third quarter of 2015. Relative to the fourth quarter of 2014 and third quarter of 2015, net interest income was positively impacted by an increase in average total loans and investments securities.
Net interest margin was 3.56% for the fourth quarter of 2015, compared to 3.49% for the third quarter of 2015, and 4.00% for the fourth quarter of 2014. The increase in net interest margin from the third to fourth quarter of 2015 was attributable to an increase in average loans and the deployment of lower yielding excess cash.
Loan yields were 4.80% for the fourth quarter of 2015, compared to 4.76% for the third quarter of 2015, and 5.09% for the fourth quarter of 2014.
The total cost of deposits was 0.61% for the fourth quarter of 2015, compared to 0.62% for the third quarter of 2015, and 0.58% for the fourth quarter of 2014. Compared to the third quarter of 2015, the decrease in the cost of deposits for the fourth quarter of 2015 was primarily due to the run-off of higher cost other time deposits.
Non-Interest Income
Total non-interest income was $9.5 million for the fourth quarter of 2015, compared to $9.5 million for the third quarter of 2015, and $9.9 million for the fourth quarter of 2014.
The Company recognized $2.9 million in net gain on sales of loans during the fourth quarter of 2015, compared to $3.2 million for the third quarter of 2015, and $3.5 million for the fourth quarter of 2014. Net gain on sale of loans in the fourth quarter of 2015 consisted of $2.0 million in gains on sales of SBA loans, $898,000 in net gains on sales of residential mortgage loans, and $62,000 in gains from the sale of non-performing loans. The decline in net gain on sale of loans for the fourth quarter of 2015, compared to the previous quarter, was primarily due to a decline in sale of residential mortgage loans, while the decline from the fourth quarter of 2014 was due to a reduction in SBA loan sales in addition to a decline in average premium rates.
Other non-interest income totaled $3.7 million for the fourth quarter of 2015, compared to $3.3 million for both the third quarter of 2015 and fourth quarter of 2014. The increase in other non-interest income from the third to fourth quarter of 2015 was primarily due to an increase in loan servicing and other miscellaneous loan related income.
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Non-Interest Expense
Total non-interest expense was $26.6 million for the fourth quarter of 2015, compared with $25.8 million for the third quarter of 2015, and $23.5 million for the fourth quarter of 2014. The increase in non-interest expense from the prior quarter was primarily due to $994,000 in merger-related costs related to the planned merger of equals with BBCN, consisting mostly of financial advisor fees and legal expenses. Merger-related costs also contributed to an approximate 1.60% increase in tax rate for the fourth quarter of 2015, as these expenses were not tax deductible.
Total salaries and employee benefits expense was $13.7 million for the fourth quarter of 2015, compared to $13.6 million for the third quarter of 2015, and $12.4 million for the fourth quarter of 2014. The increase in salaries and employee benefits for the fourth quarter of 2015 compared to the fourth quarter of 2014 was due to an overall increase in total employees, primarily to support the expansion of the residential mortgage lending business.
The Company’s operating efficiency ratio was 54.3% for the fourth quarter of 2015, compared with 54.8% for the third quarter of 2015, and 49.5% for the fourth quarter of 2014.
BALANCE SHEET
During the fourth quarter of 2015, the Company was able to reduce its cash and cash equivalents balance from $488.3 million at September 30, 2015, to $118.2 million at December 31, 2015. Excess cash was deployed in the fourth quarter of 2015 through the purchase of investment securities and funding loan growth. Higher cost time deposits and brokered money market accounts were also run-off during the fourth quarter of 2015, which helped to reduce cash equivalents to levels at year end.
Total loans receivable (net of deferred fees and costs) were $3.82 billion at December 31, 2015, compared to $3.63 billion at September 30, 2015. The increase in loans during the fourth quarter of 2015 was primarily attributable to growth in the real estate secured portfolio.
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, 2015 | | September 30, 2015 | | June 30, 2015 | | March 31, 2015 | | December 31, 2014 |
| | | | | | | | | |
Construction | $ | 19,541 | | $ | 18,146 | | $ | 16,050 | | $ | 26,117 | | $ | 21,248 |
Real Estate Secured | 2,992,824 | | 2,810,420 | | 2,723,458 | | 2,701,800 | | 2,655,251 |
Commercial & Industrial | 792,243 | | 789,422 | | 765,655 | | 769,438 | | 610,762 |
Consumer | 15,096 | | 13,284 | | 14,622 | | 15,465 | | 21,036 |
Total Loans Receivable * | 3,819,704 | | 3,631,272 | | 3,519,785 | | 3,512,820 | | 3,308,297 |
Loans Held-For-Sale | 25,223 | | 13,316 | | 25,269 | | 10,204 | | 11,783 |
Total Loans * | $ | 3,844,927 | | $ | 3,644,588 | | $ | 3,545,054 | | $ | 3,523,024 | | $ | 3,320,080 |
* Total loans receivable and total loans are net of deferred fees and costs as shown in the consolidated balance sheet presentation
The following table shows quarterly loan originations:
| Quarter Ended |
(Dollars In Thousands) (Unaudited) | December 31, 2015 | | September 30, 2015 | | June 30, 2015 | | March 31, 2015 | | December 31, 2014 |
| | | | | | | | | | | | | | | | | | | |
Real Estate Secured | $ 273,613 | | 54% | | $ 176,605 | | 43% | | $ 121,066 | | 41% | | $ 138,145 | | 35% | | $ 184,477 | | 56% |
Commercial & Industrial | 94,128 | | 19% | | 107,952 | | 26% | | 46,438 | | 16% | | 59,837 | | 15% | | 73,194 | | 22% |
Consumer | 55 | | 0% | | 360 | | 0% | | 124 | | 0% | | 1,640 | | 0% | | 3,385 | | 1% |
SBA | 37,897 | | 8% | | 21,871 | | 5% | | 25,648 | | 9% | | 31,718 | | 8% | | 34,747 | | 11% |
Residential Mortgage | 95,159 | | 19% | | 102,383 | | 25% | | 89,652 | | 31% | | 11,357 | | 3% | | 8,632 | | 4% |
Warehouse Lines of Credit* | 2,000 | | 0% | | 7,000 | | 1% | | 10,000 | | 3% | | 155,000 | | 39% | | 23,000 | | 6% |
Total Loan Originations | $ 502,852 | | 100% | | $ 416,171 | | 100% | | $ 292,928 | | 100% | | $ 397,697 | | 100% | | $ 327,435 | | 100% |
* Warehouse lines of credit are reported as commercial and industrial loans on the consolidated balance sheet.
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January 25, 2016
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Originations for the fourth quarter of 2015 totaled $502.9 million, compared to $416.2 million for the third quarter of 2015, and $327.4 million for the fourth quarter of 2014. The increase in loan origination for the three months ended December 31, 2015, compared to the previous quarter, was due to an increase in real estate secured and SBA loan originations.
Total SBA loans held-for-sale at the end of the fourth quarter of 2015 were $5.5 million, compared to $2.2 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. Residential mortgage loans held-for-sale at the end of the fourth quarter of 2015 were $19.7 million, compared to $9.6 million at the end of the third quarter of 2015.
Total deposits were $3.84 billion at December 31, 2015, compared with $3.94 billion at September 30, 2015. The decrease in total deposits was attributable to the strategic run-off of higher cost time deposits and a reduction in brokered money market deposits.
CREDIT QUALITY
During the fourth quarter of 2015, the Company experienced general improvement in asset quality, continued low levels of charge-offs, and significant loan recoveries. As a result, the Company determined that no provision for losses on loans and loan commitments was required for the fourth quarter of 2015 in spite of the loan growth experienced during the quarter.
The allowance for loan losses totaled $52.4 million, or 1.37% of gross loans (excluding loans held-for-sale), at December 31, 2015, compared to $50.1 million, or 1.38% of gross loans (excluding loans held-for-sale), at September 30, 2015. The coverage ratio of the allowance for loan losses to non-performing assets was 169.74% at December 31, 2015, compared with 130.23% at September 30, 2015.
Non-Performing Loans
At December 31, 2015, total non-performing loans were $21.7 million, or 0.56% of total gross loans, compared to $27.2 million, or 0.74% of total gross loans, at September 30, 2015.
The following table shows total non-performing loans by loan type:
NON-PERFORMING LOANS | | Quarter Ended |
(Dollars In Thousands) (Unaudited) | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | | Mar 31, 2015 | | Dec 31, 2014 |
(Net of SBA Guaranty Portions) | | | | | | | | | | |
Real Estate Secured | | $ | 15,422 | | $ | 20,123 | | $ | 23,235 | | $ | 25,329 | | $ | 29,547 |
Commercial & Industrial | | 6,272 | | 7,058 | | 7,617 | | 7,193 | | 7,718 |
Total Non-Performing Loans | | $ | 21,694 | | $ | 27,181 | | $ | 30,852 | | $ | 32,522 | | $ | 37,265 |
Net Charge-offs/Recoveries
During the fourth quarter of 2015, the Company had total gross charge-offs of $1.4 million, and recoveries of $3.7 million, which resulted in net recoveries of $2.3 million, compared to net recoveries of $795,000 for the third quarter of 2015.
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, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | | Mar 31, 2015 | | Dec 31, 2014 |
| | | | | | | | | | |
Real Estate Secured | | $ | 13 | | $ | 605 | | $ | 249 | | $ | 325 | | $ | 5,461 |
Commercial & Industrial | | 1,392 | | 1,270 | | 310 | | 999 | | 852 |
Total Loan Charge-Offs | | $ | 1,405 | | $ | 1,875 | | $ | 559 | | $ | 1,324 | | $ | 6,313 |
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LOAN RECOVERIES | | Quarter Ended |
(Dollars In Thousands) (Unaudited) | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | | Mar 31, 2015 | | Dec 31, 2014 |
| | | | | | | | | | |
Real Estate Secured | | $ | 3,242 | | $ | 1,867 | | $ | 970 | | $ | 193 | | $ | 199 |
Commercial & Industrial | | 452 | | 803 | | 240 | | 667 | | 1,620 |
Consumer | | - | | - | | - | | 10 | | 2 |
Total Loan Recoveries | | $ | 3,694 | | $ | 2,670 | | $ | 1,210 | | $ | 870 | | $ | 1,821 |
Other measures of credit quality are shown in the following tables:
DELINQUENT LOANS - By Days Past Due | | Quarter Ended |
(Dollars In Thousands) (Unaudited) | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | | Mar 31, 2015 | | Dec 31, 2014 |
(Net of SBA Guaranty Portions) | | | | | | | | | | |
30 - 59 Days Past Due | | $ | 4,315 | | $ | 4,911 | | $ | 3,615 | | $ | 7,375 | | $ | 5,165 |
60 - 89 Days Past Due | | 1,643 | | 1,143 | | 7,576 | | 421 | | 1,820 |
90 Days, and still accruing | | - | | - | | - | | - | | - |
Total Delinquent Loans | | $ | 5,958 | | $ | 6,054 | | $ | 11,191 | | $ | 7,796 | | $ | 6,985 |
TROUBLED DEBT RESTRUCTURED LOANS (“TDR”) | Quarter Ended |
(Dollars In Thousands) (Unaudited) | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | | Mar 31, 2015 | | Dec 31, 2014 |
(Net of SBA Guaranty Portions) | | | | | | | | | | |
Real Estate Secured | | $ | 22,311 | | $ | 24,188 | | $ | 29,424 | | $ | 28,612 | | $ | 25,096 |
Commercial & Industrial | | 15,681 | | 16,578 | | 13,469 | | 11,682 | | 12,014 |
Total TDR Loans | | $ | 37,992 | | $ | 40,766 | | $ | 42,893 | | $ | 40,294 | | $ | 37,110 |
LOAN CLASSIFICATIONS | | Quarter Ended |
(Dollars In Thousands) (Unaudited) | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | | Mar 31, 2015 | | Dec 31, 2014 |
(Net of SBA Guaranty Portions) | | | | | | | | | | |
Special Mention | | $ | 120,019 | | $ | 118,290 | | $ | 86,118 | | $ | 81,049 | | $ | 76,906 |
Substandard | | 80,310 | | 82,000 | | 96,666 | | 89,402 | | 82,305 |
Doubtful | | 41 | | 2,182 | | 5,301 | | 9,822 | | 11,952 |
Total Criticized and Classified Loans | | $ | 200,370 | | $ | 202,472 | | $ | 188,085 | | $ | 180,273 | | $ | 171,163 |
Total Classified Loans | | $ | 80,351 | | $ | 84,182 | | $ | 101,967 | | $ | 99,224 | | $ | 94,257 |
CAPITAL RATIOS
As of December 31, 2015, 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, 2015 | | Well Capitalized
Regulatory Requirements | | Total Excess Above Well
Capitalized Requirements |
Tier 1 Leverage Capital Ratio | 11.30% | | 5.00% | | 292,980 |
Tier 1 Common Equity Risk-Based Capital Ratio | 11.23% | | 6.50% | | 193,241 |
Tier 1 Risk-Based Capital Ratio | 12.86% | | 8.00% | | 198,690 |
Total Risk-Based Capital Ratio | 14.11% | | 10.00% | | 168,112 |
Tangible Common Equity To Tangible Assets * | 9.96% | | N/A | | N/A |
Tangible Common Equity Per Common Share * | $ 5.88 | | 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.
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January 25, 2016
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CONFERENCE CALL
Management will host its quarterly conference call on January 26, 2016, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing toll-free 888-298-2143 (domestic) or 503-406-4050 (international) and providing passcode number 20355338.
ABOUT WILSHIRE BANCORP
Headquartered in Los Angeles, Wilshire Bancorp is the parent company of Wilshire Bank, which operates 35 branch offices in California, Texas, Alabama, Georgia, New Jersey, and New York. Wilshire Bancorp also operates six loan production offices of which four are utilized primarily for the origination of loans under the Small Business Administration lending program located in California, Colorado, Georgia, and Washington, and two that are utilized primarily for the origination of residential mortgage loans located in California. Wilshire Bank is a community bank with a focus on commercial real estate lending and general commercial banking, with its primary markets encompassing the multi-ethnic populations of the Los Angeles, New York, New Jersey, and Texas. For more information, please go to www.wilshirebank.com.
ABOUT BBCN BANCORP, INC.
BBCN Bancorp, Inc. is the holding company of BBCN Bank, the largest Korean-American bank in the nation. Headquartered in Los Angeles and serving a diverse mix of customers mirroring its communities, BBCN operates 50 branches in California, New York, New Jersey, Illinois, Washington, and Virginia; eight loan production offices in Seattle, Denver, Dallas, Atlanta, Northern California, Annandale, Virginia, Portland, Oregon, and Fremont, California; and a representative office in Seoul, Korea. BBCN specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and business lending, SBA lending and international trade financing. BBCN Bank is a California-chartered bank and its deposits are insured by the FDIC to the extent provided by law. BBCN is an Equal Opportunity Lender.
ADDITIONAL INFORMATION ABOUT MERGER AND WHERE TO FIND IT
In connection with the proposed merger, BBCN Bancorp, Inc. will file with the Securities and Exchange Commission (“SEC”) a Registration Statement on Form S-4 that will include a Joint Proxy Statement/Prospectus of Wilshire Bancorp, Inc. and BBCN Bancorp, as well as other relevant documents concerning the proposed transaction. Shareholders are urged to read the Registration Statement and the Joint Proxy Statement/Prospectus regarding the merger when it becomes available and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they will contain important information. You will be able to obtain a free copy of the Joint Proxy Statement/Prospectus, as well as other filings containing information about Wilshire Bancorp and BBCN Bancorp at the SEC’s Internet site (www.sec.gov). You will also be able to obtain these documents, free of charge, from BBCN at www.BBCNbank.com in the “Investor Relations” section under the “About” tab, or from Wilshire Bancorp at www.wilshirebank.com in the “Investor Relations” section under the “About Wilshire Bank” tab.
PARTICIPANTS IN SOLICITATION
Wilshire Bancorp and BBCN Bancorp and their respective directors, executive officers, management and employees may be deemed to be participants in the solicitation of proxies in respect of the merger. Information concerning Wilshire Bancorp’s participants is set forth in the proxy statement, dated April 9, 2015, for Wilshire Bancorp’s 2015 annual meeting of stockholders as filed with the SEC on Schedule 14A. Information concerning BBCN Bancorp’s participants is set forth in the proxy statement, dated May 1, 2015, and supplemental proxy materials, dated May 20, 2015, for BBCN Bancorp’s 2015 annual meeting of stockholders, as filed with the SEC on Schedules 14A. Additional information regarding the interests of participants of Wilshire Bancorp and BBCN Bancorp in the solicitation of proxies in respect of the merger will be included in the registration statement and joint proxy statement/prospectus to be filed with the SEC.
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FORWARD-LOOKING STATEMENTS
This press release contains statements regarding the proposed transaction between Wilshire Bancorp and BBCN Bancorp. These statements are based on current expectations, estimates, forecasts and projections and management assumptions about the future performance of each of BBCN Bancorp, Wilshire Bancorp and the combined company, as well as the businesses and markets in which they do and are expected to operate. These statements constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “estimates,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans, “seeks,” and variations of such words and similar expressions are intended to identify such forward-looking statements which are not statements of historical fact. These forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to assess. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The closing of the proposed transaction is subject to regulatory approvals, the approval of the shareholders of both Wilshire Bancorp and BBCN Bancorp, and other customary closing conditions. There is no assurance that such conditions will be met or that the proposed transaction will be consummated within the expected time frame, or at all. If the transaction is consummated, factors that may cause actual outcomes to differ from what is expressed or forecasted in these forward-looking statements include, among things: difficulties and delays in integrating Wilshire Bancorp and BBCN Bancorp and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; deposit attrition, operating costs, customer loss and business disruption following the merger, including difficulties in maintaining relationships with employees, may be greater than expected; required governmental approvals of the merger may not be obtained on its proposed terms and schedule, or without regulatory constraints that may limit growth; competitive pressures among depository and other financial institutions may increase significantly and have an effect on revenues; the strength of the United States economy in general, and of the local economies in which the combined company will operate, may be different than expected, which could result in, among other things, a deterioration in credit quality or a reduced demand for credit and have a negative effect on the combined company’s loan portfolio and allowance for loan losses; changes in the U.S. legal and regulatory framework; and adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) which would negatively affect the combined company’s business and operating results.
For a more complete list and description of such risks and uncertainties, refer to Wilshire Bancorp’s Form 10-K for the year ended December 31, 2014, and BBCN Bancorp’s Form 10-K for the year ended December 31, 2014, as amended, as well as other filings made by Wilshire Bancorp and BBCN Bancorp with the SEC. Except as required under the U.S. federal securities laws and the rules and regulations of the SEC, Wilshire Bancorp and BBCN Bancorp disclaim any intention or obligation to update any forward-looking statements after the distribution of this press release, whether as a result of new information, future events, developments, changes in assumptions or otherwise.
###
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CONSOLIDATED BALANCE SHEET | | | | | | | | | | |
(Dollars In Thousands) (Unaudited) | | December 31, | | September 30, | | Three Months | | December 31, | | Twelve Months |
| | 2015 | | 2015 | | % Change | | 2014 | | % Change |
ASSETS: | | | | | | | | | | |
Cash and due from banks | | $ | 118,089 | | $ | 487,655 | | -76% | | $ | 233,699 | | -49% |
Federal funds sold and other cash equivalents | | 104 | | 601 | | -83% | | 254 | | -59% |
Total Cash and Cash Equivalents | | 118,193 | | 488,256 | | -76% | | 233,953 | | -49% |
| | | | | | | | | | |
Deposits held in other financial institutions | | - | | 7,500 | | -100% | | 8,000 | | -100% |
| | | | | | | | | | |
Investment securities available for sale | | 535,524 | | 386,679 | | 38% | | 388,367 | | 38% |
Investment securities held to maturity | | 21 | | 22 | | -5% | | 26 | | -19% |
Total Investment Securities | | 535,545 | | 386,701 | | 38% | | 388,393 | | 38% |
| | | | | | | | | | |
Total Loans Held-For-Sale | | 25,223 | | 13,316 | | 89% | | 11,783 | | 114% |
| | | | | | | | | | |
Real estate construction | | 19,541 | | 18,146 | | 8% | | 21,248 | | -8% |
Residential real estate | | 269,117 | | 231,902 | | 16% | | 183,665 | | 47% |
Commercial real estate | | 2,723,707 | | 2,578,518 | | 6% | | 2,471,586 | | 10% |
Commercial and industrial | | 792,243 | | 789,422 | | 0% | | 610,762 | | 30% |
Consumer | | 15,096 | | 13,284 | | 14% | | 21,036 | | -28% |
Total loans receivable, net of deferred fees and costs | | 3,819,704 | | 3,631,272 | | 5% | | 3,308,297 | | 15% |
Allowance for loan losses | | (52,405) | | (50,116) | | 5% | | (48,624) | | 8% |
Loans Receivable, Net of Allowance for Loan Losses | | 3,767,299 | | 3,581,156 | | 5% | | 3,259,673 | | 16% |
| | | | | | | | | | |
Accrued interest receivable | | 9,226 | | 8,604 | | 7% | | 8,792 | | 5% |
Due from customers on acceptances | | 7,250 | | 8,940 | | -19% | | 5,611 | | 29% |
Other real estate owned | | 9,179 | | 11,302 | | -19% | | 7,922 | | 16% |
Premises and equipment | | 16,096 | | 14,328 | | 12% | | 13,881 | | 16% |
Federal home loan bank (FHLB) stock, at cost | | 16,539 | | 16,539 | | 0% | | 16,539 | | 0% |
Cash surrender value of life insurance | | 25,028 | | 24,879 | | 1% | | 23,330 | | 7% |
Investment in affordable housing partnerships | | 48,867 | | 45,435 | | 8% | | 44,077 | | 11% |
Deferred income taxes | | 21,489 | | 20,086 | | 7% | | 22,271 | | -4% |
Servicing assets | | 19,894 | | 19,967 | | 0% | | 18,031 | | 10% |
Goodwill | | 67,473 | | 67,473 | | 0% | | 67,473 | | 0% |
Other assets | | 26,167 | | 25,919 | | 1% | | 25,740 | | 2% |
TOTAL ASSETS | | $ | 4,713,468 | | $ | 4,740,401 | | -1% | | $ | 4,155,469 | | 13% |
| | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY: | | | | | | | | | | |
Non-interest bearing demand deposits | | $ | 1,088,436 | | $ | 1,074,025 | | 1% | | $ | 915,413 | | 19% |
Savings and interest checking | | 172,038 | | 161,267 | | 7% | | 160,717 | | 7% |
Money market deposits | | 977,697 | | 996,899 | | -2% | | 765,892 | | 28% |
Time deposits in denomination of $100,000 or more | | 1,349,440 | | 1,440,340 | | -6% | | 1,291,844 | | 4% |
Other time deposits | | 252,265 | | 269,909 | | -7% | | 267,393 | | -6% |
Total Deposits | | 3,839,876 | | 3,942,440 | | -3% | | 3,401,259 | | 13% |
| | | | | | | | | | |
FHLB borrowings | | 220,000 | | 150,000 | | 47% | | 150,000 | | 47% |
Acceptance outstanding | | 7,250 | | 8,940 | | -19% | | 5,611 | | 29% |
Junior subordinated debentures | | 72,016 | | 71,955 | | 0% | | 71,779 | | 0% |
Accrued interest payable | | 2,105 | | 2,326 | | -10% | | 2,228 | | -6% |
Other liabilities | | 39,291 | | 38,112 | | 3% | | 35,181 | | 12% |
Total Liabilities | | 4,180,538 | | 4,213,773 | | -1% | | 3,666,058 | | 14% |
| | | | | | | | | | |
Common stock | | 233,341 | | 233,634 | | 0% | | 232,001 | | 1% |
Retained earnings | | 296,303 | | 287,072 | | 3% | | 252,957 | | 17% |
Accumulated other comprehensive income | | 3,286 | | 5,922 | | -45% | | 4,453 | | -26% |
Total Shareholders’ Equity | | 532,930 | | 526,628 | | 1% | | 489,411 | | 9% |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | | $ | 4,713,468 | | $ | 4,740,401 | | -1% | | $ | 4,155,469 | | 13% |
(continued)
8
Wilshire Bancorp Inc. – 4Q 2015 Results
January 25, 2016
Page 9
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
| | Quarter Ended | | Three Mths | | Quarter Ended | | Twelve Mths |
| | December 31, 2015 | | September 30, 2015 | | % Change | | December 31, 2014 | | % Change |
INTEREST INCOME | | | | | | | | | | |
Interest and fees on loans | | $ | 43,797 | | $ | 41,877 | | 5% | | $ | 40,709 | | 8% |
Interest on investment securities | | 2,626 | | 2,022 | | 30% | | 2,053 | | 28% |
Interest on federal funds sold and others | | 228 | | 303 | | -25% | | 155 | | 47% |
Total Interest Income | | 46,651 | | 44,202 | | 6% | | 42,917 | | 9% |
| | | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | |
Deposits | | 5,945 | | 6,039 | | -2% | | 4,783 | | 24% |
FHLB advances and other borrowings | | 1,287 | | 704 | | 83% | | 667 | | 93% |
Total Interest Expense | | 7,232 | | 6,743 | | 7% | | 5,450 | | 33% |
| | | | | | | | | | |
Net interest income before provision for losses on loans and loan commitments | | 39,419 | | 37,459 | | 5% | | 37,467 | | 5% |
Provision for losses on loans and loan commitments | | - | | 700 | | -100% | | - | | 0% |
| | | | | | | | | | |
Net interest income after provision for losses on loans and loan commitments | | 39,419 | | 36,759 | | 7% | | 37,467 | | 5% |
| | | | | | | | | | |
NONINTEREST INCOME | | | | | | | | | | |
Service charges on deposits | | 2,903 | | 3,084 | | -6% | | 3,105 | | -7% |
Net gain on sale of SBA loans | | 1,958 | | 1,958 | | -0% | | 3,465 | | -43% |
Net gain on sale of residential loans | | 898 | | 1,204 | | -25% | | 63 | | 1325% |
Net gain on sale of other loans | | 62 | | - | | 0% | | - | | 0% |
Other | | 3,725 | | 3,281 | | 14% | | 3,280 | | 14% |
Total Noninterest Income | | 9,546 | | 9,527 | | 0% | | 9,913 | | -4% |
| | | | | | | | | | |
NONINTEREST EXPENSES | | | | | | | | | | |
Salaries and employee benefits | | 13,676 | | 13,639 | | 0% | | 12,359 | | 11% |
Occupancy and equipment | | 3,390 | | 3,341 | | 1% | | 3,385 | | 0% |
Data processing | | 1,156 | | 1,119 | | 3% | | 1,030 | | 12% |
Merger-related costs | | 994 | | - | | 0% | | - | | 0% |
Other | | 7,348 | | 7,651 | | -4% | | 6,694 | | 10% |
Total Noninterest Expenses | | 26,564 | | 25,750 | | 3% | | 23,468 | | 13% |
| | | | | | | | | | |
Income before income taxes | | 22,401 | | 20,536 | | 9% | | 23,912 | | -6% |
Income taxes provision | | 8,453 | | 7,251 | | 17% | | 7,809 | | 8% |
NET INCOME | | $ | 13,948 | | $ | 13,285 | | 5% | | $ | 16,103 | | -13% |
| | | | | | | | | | |
PER COMMON SHARE INFORMATION: | | | | | | | | | | |
Basic income per common share | | $ | 0.18 | | $ | 0.17 | | 5% | | $ | 0.21 | | -14% |
Diluted income per common share | | $ | 0.18 | | $ | 0.17 | | 5% | | $ | 0.20 | | -14% |
| | | | | | | | | | |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | | | | |
Basic | | 78,601,082 | | 78,556,455 | | | | 78,315,686 | | |
Diluted | | 78,942,078 | | 78,907,223 | | | | 78,628,965 | | |
(continued)
9
Wilshire Bancorp Inc. – 4Q 2015 Results
January 25, 2016
Page 10
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
| | Twelve Months Ended | | Twelve Mths |
| | December 31, 2015 | | December 31, 2014 | | % Change |
| | | | | | |
INTEREST INCOME | | | | | | |
Interest and fees on loans | | $ | 167,361 | | $ | 155,020 | | 8% |
Interest on investment securities | | 8,545 | | 8,195 | | 4% |
Interest on federal funds sold and others | | 987 | | 489 | | 102% |
Total Interest Income | | 176,893 | | 163,704 | | 8% |
| | | | | | |
INTEREST EXPENSE | | | | | | |
Deposits | | 22,742 | | 15,926 | | 43% |
FHLB advances and other borrowings | | 3,309 | | 2,241 | | 48% |
Total Interest Expense | | 26,051 | | 18,167 | | 43% |
| | | | | | |
Net interest income before provision for losses on loans and loan commitments | | 150,842 | | 145,537 | | 4% |
Provision for losses on loans and loan commitments | | 700 | | - | | 0% |
| | | | | | |
Net interest income after provision for losses on loans and loan commitments | | 150,142 | | 145,537 | | 3% |
| | | | | | |
NONINTEREST INCOME | | | | | | |
Service charges on deposits | | 12,253 | | 12,693 | | -3% |
Net gain on sale of SBA loans | | 8,792 | | 14,366 | | -39% |
Net gain on sale of residential loans | | 3,290 | | 366 | | 799% |
Net gain on sale of other loans | | 4,988 | | 230 | | 2069% |
Other | | 16,331 | | 13,586 | | 20% |
Total Noninterest Income | | 45,654 | | 41,241 | | 11% |
| | | | | | |
NONINTEREST EXPENSES | | | | | | |
Salaries and employee benefits | | 54,144 | | 49,724 | | 9% |
FDIC indemnification impairment | | - | | 597 | | -100% |
Occupancy and equipment | | 13,300 | | 13,371 | | -1% |
Data processing | | 4,406 | | 3,998 | | 10% |
Merger-related costs | | 994 | | 3,577 | | -72% |
Other | | 27,046 | | 26,247 | | 3% |
Total Noninterest Expenses | | 99,890 | | 97,514 | | 2% |
| | | | | | |
Income before income taxes | | 95,906 | | 89,264 | | 7% |
Income taxes provision | | 34,501 | | 30,255 | | 14% |
NET INCOME | | $ | 61,405 | | $ | 59,009 | | 4% |
| | | | | | |
PER COMMON SHARE INFORMATION: | | | | | | |
Basic income per common share | | $ | 0.78 | | $ | 0.75 | | 4% |
Diluted income per common share | | $ | 0.78 | | $ | 0.75 | | 4% |
| | | | | | |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | | | | | | |
Basic | | 78,486,883 | | 78,250,901 | | |
Diluted | | 78,818,556 | | 78,591,374 | | |
(continued)
10
Wilshire Bancorp Inc. – 4Q 2015 Results
January 25, 2016
Page 11
SUMMARY OF FINANCIAL DATA
(Dollars In Thousands, Except Per Share Data) (Unaudited)
| | Quarter Ended | | |
AVERAGE BALANCES | | December 31, 2015 | | | | September 30, 2015 | | | | December 31, 2014 | | |
Average Assets | | $ | 4,728,510 | | | | $ | 4,592,052 | | | | $ | 4,049,930 | | |
Average Equity | | 534,938 | | | | 524,962 | | | | 485,482 | | |
Average Net Loans | | 3,650,672 | | | | 3,519,441 | | | | 3,200,538 | | |
Average Deposits | | 3,922,849 | | | | 3,893,958 | | | | 3,292,557 | | |
Average Time Deposits of $100,000 or more | | 1,407,298 | | | | 1,448,501 | | | | 1,211,738 | | |
Average FHLB & Other Borrowings | | 151,848 | | | | 59,783 | | | | 150,000 | | |
Average Interest Earning Assets | | 4,445,026 | | | | 4,308,140 | | | | 3,764,271 | | |
| | | | | | | | | | | | |
| | Twelve Months Ended | | |
AVERAGE BALANCES | | December 31, 2015 | | | | | | | | December 31, 2014 | | |
Average Assets | | $ | 4,513,304 | | | | | | | | $ | 3,762,400 | | |
Average Equity | | 518,447 | | | | | | | | 466,398 | | |
Average Net Loans | | 3,501,800 | | | | | | | | 3,017,409 | | |
Average Deposits | | 3,762,323 | | | | | | | | 3,021,392 | | |
Average Time Deposits of $100,000 or more | | 1,393,357 | | | | | | | | 970,481 | | |
Average FHLB & Other Borrowings | | 118,435 | | | | | | | | 160,950 | | |
Average Interest Earning Assets | | 4,233,219 | | | | | | | | 3,479,993 | | |
| | | | | | | | | | | | |
| | Quarter Ended | | |
PROFITABILITY | | December 31, 2015 | | | | September 30, 2015 | | | | December 31, 2014 | | |
Annualized Return on Average Assets | | 1.18% | | | | 1.16% | | | | 1.59% | | |
Annualized Return on Average Equity | | 10.43% | | | | 10.12% | | | | 13.27% | | |
Efficiency Ratio | | 54.25% | | | | 54.80% | | | | 49.53% | | |
Annualized Operating Expense/Average Assets | | 2.25% | | | | 2.24% | | | | 2.32% | | |
Annualized Net Interest Margin | | 3.56% | | | | 3.49% | | | | 4.00% | | |
| | | | | | | | | | | | |
| | Twelve Months Ended | | |
PROFITABILITY | | December 31, 2015 | | | | | | | | December 31, 2014 | | |
Annualized Return on Average Assets | | 1.36% | | | | | | | | 1.57% | | |
Annualized Return on Average Equity | | 11.84% | | | | | | | | 12.65% | | |
Efficiency Ratio | | 50.84% | | | | | | | | 52.21% | | |
Annualized Operating Expense/Average Assets | | 2.21% | | | | | | | | 2.59% | | |
Annualized Net Interest Margin | | 3.58% | | | | | | | | 4.20% | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | As Of |
DEPOSIT COMPOSITION | | December 31, 2015 | | Cost of
Funds | | September 30, 2015 | | Cost of
Funds | | December 31, 2014 | | Cost of
Funds |
Noninterest Bearing Demand Deposits | | 28.3% | | 0.00% | | 27.2% | | 0.00% | | 26.9% | | 0.00% |
Savings & Interest Checking | | 4.5% | | 1.26% | | 4.1% | | 1.29% | | 4.7% | | 1.33% |
Money Market Deposits | | 25.5% | | 0.69% | | 25.3% | | 0.68% | | 22.5% | | 0.71% |
Time Deposits of $100,000 or More | | 35.1% | | 0.89% | | 36.5% | | 0.89% | | 38.0% | | 0.79% |
Other Time Deposits | | 6.6% | | 0.91% | | 6.9% | | 0.92% | | 7.9% | | 0.84% |
Total Deposits | | 100.0% | | 0.61% | | 100.0% | | 0.62% | | 100.0% | | 0.58% |
| | | | | | | | | | | | |
| | As Of | | |
CAPITAL RATIOS | | December 31, 2015 | | | | September 30, 2015 | | | | December 31, 2014 | | |
Tier 1 Leverage Ratio | | 11.30% | | | | 11.54% | | | | 12.11% | | |
Tier 1 Common Equity Risk-Based Capital Ratio | | 11.23% | | | | 11.47% | | | | N/A | | |
Tier 1 Risk-Based Capital Ratio | | 12.86% | | | | 13.23% | | | | 14.13% | | |
Total Risk-Based Capital Ratio | | 14.11% | | | | 14.48% | | | | 15.38% | | |
Total Shareholders’ Equity | | $ | 532,930 | | | | $ | 526,628 | | | | $ | 489,411 | | |
Book Value Per Common Share | | $ | 6.78 | | | | $ | 6.70 | | | | $ | 6.25 | | |
Tangible Common Equity Per Common Share * | | $ | 5.88 | | | | $ | 5.80 | | | | $ | 5.33 | | |
Tangible Common Equity to Tangible Assets * | | 9.96% | | | | 9.76% | | | | 10.23% | | |
* Excludes goodwill and other intangible assets
(continued)
11
Wilshire Bancorp Inc. – 4Q 2015 Results
January 25, 2016
Page 12
ALLOWANCE FOR LOAN LOSSES
(Dollars In Thousands) (Unaudited)
| | Quarter Ended |
| | December 31, 2015 | | September 30, 2015 | | June 30, 2015 | | March 31, 2015 | | December 31, 2014 |
| | | | | | | | | | |
Balance at beginning of period | | $ | 50,116 | | $ | 48,821 | | $ | 48,170 | | $ | 48,624 | | $ | 53,116 |
Provision for losses on loans | | - | | 500 | | - | | - | | - |
Recoveries on loans previously charged-off | | 3,694 | | 2,670 | | 1,210 | | 870 | | 1,821 |
Gross loan charge-offs | | (1,405) | | (1,875) | | (559) | | (1,324) | | (6,313) |
Balance at end of period | | $ | 52,405 | | $ | 50,116 | | $ | 48,821 | | $ | 48,170 | | $ | 48,624 |
| | | | | | | | | | |
Net Loan Charge-offs / Average Net Loans | | -0.06% | | -0.02% | | -0.02% | | 0.01% | | 0.14% |
Charge-offs / Average Total Loans | | 0.04% | | 0.05% | | 0.02% | | 0.04% | | 0.20% |
Allowance for Loan Losses / Gross Loans* | | 1.37% | | 1.38% | | 1.38% | | 1.37% | | 1.47% |
Allowance for Loan Losses / Non-accrual Loans | | 241.56% | | 184.38% | | 158.24% | | 148.12% | | 130.48% |
Allowance for Loan Losses / Non-performing Loans | | 241.56% | | 184.38% | | 158.24% | | 148.12% | | 130.48% |
Allowance for Loan Losses / Non-performing Assets | | 169.74% | | 130.23% | | 130.50% | | 120,63% | | 107.61% |
Allowance for Loan Losses / Classified Loans | | 65.22% | | 59.53% | | 47.88% | | 48.55% | | 51.59% |
| | | | | | | | | | |
| | | | | | | | | | |
* Excludes held-for-sale loans | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
NON-PERFORMING ASSETS | | | | | | | | | | |
(Dollars In Thousands, Net of SBA Guaranty) | Quarter Ended |
(Unaudited) | | December 31, 2015 | | September 30, 2015 | | June 30, 2015 | | March 31, 2015 | | December 31, 2014 |
| | | | | | | | | | |
Non-accrual loans | | $ | 21,694 | | $ | 27,181 | | $ | 30,852 | | $ | 32,522 | | $ | 37,265 |
Loans 90 days or more past due and still accruing | | - | | - | | - | | - | | - |
Total Non-performing Loans | | 21,694 | | 27,181 | | 30,852 | | 32,522 | | 37,265 |
| | | | | | | | | | |
Total OREO | | 9,179 | | 11,302 | | 6,559 | | 7,411 | | 7,922 |
Total Non-performing Assets | | $ | 30,873 | | $ | 38,483 | | $ | 37,411 | | $ | 39,933 | | $ | 45,187 |
| | | | | | | | | | |
Total Non-performing Loans/Gross Loans | | 0.56% | | 0.74% | | 0.87% | | 0.92% | | 1.12% |
Total Non-performing Assets/Total Assets | | 0.65% | | 0.81% | | 0.81% | | 0.90% | | 1.09% |
| | | | | | | | | | | | | | | | | | | | |
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS
(Dollars In Thousands) (Unaudited) | | Quarter Ended | | | | |
| | December 31, 2015 | | September 30, 2015 | | December 31, 2014 | | | | |
| | | | | | | | | | |
Balance at beginning of period | | $ | 1,261 | | $ | 1,061 | | $ | 1,061 | | | | |
Provision for losses on loan commitments | | - | | 200 | | - | | | | |
Balance at end of period | | $ | 1,261 | | $ | 1,261 | | $ | 1,061 | | | | |
| | | | | | | | | | |
| | | | | | | | |
| | Twelve Months Ended | | | | | | |
| | December 31, 2015 | | December 31, 2014 | | | | | | |
| | | | | | | | | | |
Balance at beginning of period | | $ | 1,061 | | $ | 1,061 | | | | | | |
Provision for losses on loan commitments | | 200 | | - | | | | | | |
Balance at end of period | | $ | 1,261 | | $ | 1,061 | | | | | | |
(continued)
12
Wilshire Bancorp Inc. – 4Q 2015 Results
January 25, 2016
Page 13
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
| | For the Quarter Ended |
| | December 31, 2015 | | September 30, 2015 | | December 31, 2014 |
| | | | | | | | | | | | | | | | | | |
| | Average | | Interest | | Average | | Average | | Interest | | Average | | Average | | Interest | | Average |
| | Balance | | Income/ | | Yield/ | | Balance | | Income/ | | Yield/ | | Balance | | Income/ | | Yield/ |
INTEREST EARNING ASSETS | | | | Expense | | Rate | | | | Expense | | Rate | | | | Expense | | Rate |
| | | | | | | | | | | | | | | | | | |
LOANS: | | | | | | | | | | | | | | | | | | |
Real Estate Loans | | $ 2,904,530 | | $ 34,851 | | 4.80% | | $ 2,802,173 | | $ 33,750 | | 4.82% | | $ 2,666,855 | | $ 33,339 | | 5.00% |
Commercial Loans | | 743,686 | | 7,662 | | 4.12% | | 714,169 | | 7,116 | | 3.99% | | 530,293 | | 5,717 | | 4.31% |
Consumer Loans | | 12,650 | | 96 | | 3.04% | | 13,053 | | 108 | | 3.31% | | 13,162 | | 129 | | 3.92% |
Total Gross Loans | | 3,660,866 | | 42,609 | | 4.66% | | 3,529,395 | | 40,974 | | 4.64% | | 3,210,310 | | 39,185 | | 4.88% |
Deferred Fees and Costs \ Loan Fees | | (10,194) | | 1,188 | | | | (9,954) | | 903 | | | | (9,772) | | 1,524 | | |
Total Loans * | | 3,650,672 | | 43,797 | | 4.80% | | 3,519,441 | | 41,877 | | 4.76% | | 3,200,538 | | 40,709 | | 5.09% |
| | | | | | | | | | | | | | | | | | |
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS: | | | | | | | | | | | | | | | | | | |
Investment Securities** | | 496,571 | | 2,626 | | 2.24% | | 355,828 | | 2,022 | | 2.45% | | 366,229 | | 2,053 | | 2.43% |
Deposits Held In Other Institutions | | 4,223 | | 22 | | 2.08% | | 7,576 | | 31 | | 1.64% | | 8,402 | | 34 | | 1.62% |
Federal Funds Sold & Others | | 293,560 | | 206 | | 0.28% | | 425,295 | | 272 | | 0.26% | | 189,102 | | 121 | | 0.26% |
Total Investment Securities and Other Earning Assets | | 794,354 | | 2,854 | | 1.51% | | 788,699 | | 2,325 | | 1.26% | | 563,733 | | 2,208 | | 1.69% |
| | | | | | | | | | | | | | | | | | |
TOTAL INTEREST-EARNING ASSETS | | $ 4,445,026 | | $ 46,651 | | 4.21% | | $ 4,308,140 | | $ 44,202 | | 4.12% | | $ 3,764,271 | | $ 42,917 | | 4.58% |
| | | | | | | | | | | | | | | | | | |
Total Non-Interest Earning Assets | | 283,484 | | | | | | 283,912 | | | | | | 285,659 | | | | |
TOTAL ASSETS | | $ 4,728,510 | | | | | | $ 4,592,052 | | | | | | $ 4,049,930 | | | | |
| | | | | | | | | | | | | | | | | | |
INTEREST BEARING LIABILITIES | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
INTEREST-BEARING DEPOSITS: | | | | | | | | | | | | | | | | | | |
Money Market | | $ 982,301 | | $ 1,684 | | 0.69% | | $ 978,220 | | $ 1,657 | | 0.68% | | $ 748,031 | | $ 1,320 | | 0.71% |
NOW | | 34,586 | | 23 | | 0.27% | | 30,916 | | 22 | | 0.29% | | 31,364 | | 17 | | 0.22% |
Savings | | 132,186 | | 504 | | 1.53% | | 128,597 | | 493 | | 1.53% | | 127,610 | | 510 | | 1.60% |
Time Deposits of $100,000 or More | | 1,407,298 | | 3,132 | | 0.89% | | 1,448,501 | | 3,235 | | 0.89% | | 1,211,738 | | 2,387 | | 0.79% |
Other Time Deposits | | 263,322 | | 602 | | 0.91% | | 273,433 | | 632 | | 0.93% | | 262,777 | | 549 | | 0.84% |
Total Interest Bearing Deposits | | 2,819,693 | | 5,945 | | 0.84% | | 2,859,667 | | 6,039 | | 0.85% | | 2,381,520 | | 4,783 | | 0.80% |
| | | | | | | | | | | | | | | | | | |
BORROWINGS: | | | | | | | | | | | | | | | | | | |
FHLB Advances and Other Borrowings | | 151,848 | | 828 | | 2.18% | | 59,783 | | 257 | | 1.72% | | 150,000 | | 235 | | 0.63% |
Junior Subordinated Debentures | | 71,976 | | 459 | | 2.55% | | 71,916 | | 447 | | 2.49% | | 71,742 | | 432 | | 2.41% |
Total Borrowings | | 223,824 | | 1,287 | | 2.30% | | 131,699 | | 704 | | 2.14% | | 221,742 | | 667 | | 1.20% |
| | | | | | | | | | | | | | | | | | |
TOTAL INTEREST BEARING LIABILITIES | | $ 3,043,517 | | $ 7,232 | | 0.95% | | $ 2,991,366 | | $ 6,743 | | 0.90% | | $ 2,603,262 | | $ 5,450 | | 0.84% |
| | | | | | | | | | | | | | | | | | |
Non-Interest Bearing Deposits | | 1,103,156 | | | | | | 1,034,291 | | | | | | 911,037 | | | | |
Other Liabilities | | 46,899 | | | | | | 41,433 | | | | | | 50,149 | | | | |
Shareholders’ Equity | | 534,938 | | | | | | 524,962 | | | | | | 485,482 | | | | |
| | | | | | | | | | | | | | | | | | |
TOTAL LIABILITIES AND EQUITY | | $ 4,728,510 | | | | | | $ 4,592,052 | | | | | | $ 4,049,930 | | | | |
| | | | | | | | | | | | | | | | | | |
NET INTEREST INCOME | | | | $ 39,419 | | | | | | $ 37,459 | | | | | | $ 37,467 | | |
. | | | | | | | | | | | | | | | | | | |
NET INTEREST SPREAD | | | | | | 3.26% | | | | | | 3.22% | | | | | | 3.74% |
| | | | | | | | | | | | | | | | | | |
NET INTEREST MARGIN | | | | | | 3.56% | | | | | | 3.49% | | | | | | 4.00% |
* Allowance for loan losses excluded from average total loans and earning assets
** Tax equivalent ratios for investment securities
(continued)
13
Wilshire Bancorp Inc. – 4Q 2015 Results
January 25, 2016
Page 14
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
| | For the Twelve Months Ended |
| | December 31, 2015 | | December 31, 2014 |
| | | | | | | | | | | | |
| | Average | | Interest | | Average | | Average | | Interest | | Average |
| | Balance | | Income/ | | Yield/ | | Balance | | Income/ | | Yield/ |
INTEREST EARNING ASSETS | | | | Expense | | Rate | | | | Expense | | Rate |
| | | | | | | | | | | | |
LOANS: | | | | | | | | | | | | |
Real Estate Loans | | $ 2,798,746 | | $ 134,576 | | 4.81% | | $ 2,549,100 | | $ 128,969 | | 5.06% |
Commercial Loans | | 699,713 | | 28,007 | | 4.00% | | 464,911 | | 21,136 | | 4.55% |
Consumer Loans | | 13,384 | | 443 | | 3.31% | | 12,308 | | 490 | | 3.98% |
Total Gross Loans | | 3,511,843 | | 163,026 | | 4.64% | | 3,026,319 | | 150,595 | | 4.98% |
Deferred Fees and Costs \ Loan Fees | | (10,043) | | 4,335 | | | | (8,910) | | 4,425 | | |
Total Loans * | | 3,501,800 | | 167,361 | | 4.78% | | 3,017,409 | | 155,020 | | 5.14% |
| | | | | | | | | | | | |
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS: | | | | | | | | | | | | |
Investment Securities** | | 388,183 | | 8,545 | | 2.37% | | 350,661 | | 8,195 | | 2.54% |
Deposits Held In Other Institutions | | 6,938 | | 118 | | 1.70% | | 17,105 | | 238 | | 1.39% |
Federal Funds Sold & Others | | 336,298 | | 869 | | 0.26% | | 94,818 | | 251 | | 0.27% |
Total Investment Securities and Other Earning Assets | | 731,419 | | 9,532 | | 1.39% | | 462,584 | | 8,684 | | 2.03% |
| | | | | | | | | | | | |
TOTAL INTEREST-EARNING ASSETS | | $ 4,233,219 | | $ 176,893 | | 4.19% | | $ 3,479,993 | | $ 163,704 | | 4.72% |
| | | | | | | | | | | | |
Total Non-Interest Earning Assets | | 280,085 | | | | | | 282,407 | | | | |
TOTAL ASSETS | | $ 4,513,304 | | | | | | $ 3,762,400 | | | | |
| | | | | | | | | | | | |
INTEREST BEARING LIABILITIES | | | | | | | | | | | | |
| | | | | | | | | | | | |
INTEREST-BEARING DEPOSITS: | | | | | | | | | | | | |
Money Market | | $ 924,673 | | $ 6,211 | | 0.67% | | $ 770,316 | | $ 5,219 | | 0.68% |
NOW | | 30,874 | | 82 | | 0.27% | | 32,240 | | 63 | | 0.20% |
Savings | | 129,961 | | 1,993 | | 1.53% | | 121,878 | | 1,926 | | 1.58% |
Time Deposits of $100,000 or More | | 1,393,357 | | 12,031 | | 0.86% | | 970,481 | | 6,849 | | 0.71% |
Other Time Deposits | | 269,842 | | 2,425 | | 0.90% | | 244,144 | | 1,869 | | 0.77% |
Total Interest Bearing Deposits | | 2,748,707 | | 22,742 | | 0.83% | | 2,139,059 | | 15,926 | | 0.75% |
| | | | | | | | | | | | |
BORROWINGS: | | | | | | | | | | | | |
FHLB Advances and Other Borrowings | | 118,435 | | 1,537 | | 1.30% | | 160,950 | | 522 | | 0.32% |
Junior Subordinated Debentures | | 71,888 | | 1,772 | | 2.47% | | 71,659 | | 1,719 | | 2.40% |
Total Borrowings | | 190,323 | | 3,309 | | 1.74% | | 232,609 | | 2,241 | | 0.96% |
| | | | | | | | | | | | |
TOTAL INTEREST BEARING LIABILITIES | | $ 2,939,030 | | $ 26,051 | | 0.89% | | $ 2,371,668 | | $ 18,167 | | 0.77% |
| | | | | | | | | | | | |
Non-Interest Bearing Deposits | | 1,013,616 | | | | | | 882,333 | | | | |
Other Liabilities | | 42,211 | | | | | | 42,001 | | | | |
Shareholders’ Equity | | 518,447 | | | | | | 466,398 | | | | |
TOTAL LIABILITIES AND EQUITY | | $ 4,513,304 | | | | | | $ 3,762,400 | | | | |
| | | | | | | | | | | | |
NET INTEREST INCOME | | | | $ 150,842 | | | | | | $ 145,537 | | |
| | | | | | | | | | | | |
NET INTEREST SPREAD | | | | | | 3.31% | | | | | | 3.96% |
| | | | | | | | | | | | |
NET INTEREST MARGIN | | | | | | 3.58% | | | | | | 4.20% |
* Allowance for loan losses excluded from average total loans and earning assets
** Tax equivalent ratios for investment securities
(continued)
14
Wilshire Bancorp Inc. – 4Q 2015 Results
January 25, 2016
Page 15
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, 2015 | | September 30, 2015 | | December 31, 2014 |
| | | | | | |
Total shareholders’ equity | | $ | 532,930 | | $ | 526,628 | | $ | 489,411 |
Goodwill and other intangible assets, net | | (70,658) | | (70,894) | | (71,628) |
Tangible common equity | | $ | 462,272 | | $ | 455,734 | | $ | 417,783 |
| | | | | | |
Total assets | | $ | 4,713,468 | | $ | 4,740,401 | | $ | 4,155,469 |
Goodwill and other intangible assets, net | | (70,658) | | (70,894) | | (71,628) |
Tangible assets | | $ | 4,642,810 | | $ | 4,669,507 | | $ | 4,083,841 |
| | | | | | |
Common shares outstanding | | 78,608,717 | | 78,598,147 | | 78,322,462 |
| | | | | | |
| | | | | | |
NET INCOME AND EARNINGS PER SHARE BEFORE MERGER-RELATED COSTS | | |
(Dollars In Thousands, Except Share and Per Share Data) (Unaudited) | | |
| | Quarter Ended |
| | December 31, 2015 | | September 30, 2015 | | December 31, 2014 |
| | | | | | |
Net income | | $ | 13,948 | | $ | 13,285 | | $ | 16,103 |
Add Back — merger-related costs | | 994 | | - | | - |
Net change in tax provision expenses | | - | | - | | - |
Net income before merger-related costs | | $ | 14,942 | | $ | 13,285 | | $ | 16,103 |
| | | | | | |
PER COMMON SHARE INFORMATION: | | | | | | |
Basic income per common share | | $ | 0.19 | | $ | 0.17 | | $ | 0.21 |
Diluted income per common share | | $ | 0.19 | | $ | 0.17 | | $ | 0.20 |
| | | | | | |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | | | | | | |
Basic | | 78,601,082 | | 78,556,455 | | 78,315,686 |
Diluted | | 78,942,078 | | 78,907,223 | | 78,628,965 |
* Tangible Common Equity, Tangible Assets, and Income Before Merger-Related Costs 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
