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 $13.2 Million or
$0.17 per Share for First Quarter 2016
LOS ANGELES, April 18, 2016 - Wilshire Bancorp, Inc. (NASDAQ: WIBC) (the “Company”), the holding company for Wilshire Bank (the “Bank”), today reported net income of $13.2 million, or $0.17 per diluted common share, for the quarter ended March 31, 2016. This compares to net income of $18.6 million, or $0.24 per diluted common share, for the same period of the prior year, and net income of $13.9 million, or $0.18 per diluted common share, for the fourth quarter of 2015.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, “Following a very strong quarter of loan production to end 2015, we saw a lower level of loan demand across all of our business lines to start 2016. We believe this was primarily attributable to the first quarter typically being a seasonally slower period for loan production, as well as the impact of macroeconomic uncertainty that caused borrowers to be more cautious during the first two months of the year. However, market conditions appear to be improving, and we expect to see an increase in loan production as we move into the seasonally stronger periods of the year.”
“The pending merger of equals with BBCN Bancorp is proceeding as anticipated and we are looking forward to the opportunities to provide our customers with a superior banking experience as part of the only Super Regional Korean-American bank in the United States,” said Mr. Yoo.
Q1 2016 Summary
§ Net income totaled $13.2 million, or $0.17 per diluted common share, for the first quarter of 2016
§ Return on average assets of 1.12% and return on average equity of 9.69% for the first quarter of 2016
§ Net interest margin of 3.54% for the first quarter of 2016, compared to 3.56% for the fourth quarter of 2015
§ Loan originations of $276.1 million during the first quarter of 2016, compared to $502.9 million for the fourth quarter of 2015
§ Loans receivable (net of deferred fees and costs) totaled $3.79 billion at March 31, 2016, a decrease of 1% from $3.82 billion at December 31, 2015
§ Total deposits were $3.85 billion at March 31, 2016, largely unchanged from $3.84 billion at December 31, 2015
§ Demand deposits totaled $1.11 billion at March 31, 2016, an increase of 2% from $1.09 billion at December 31, 2015
Wilshire Bancorp Inc. – 1Q 2016 Results
April 18, 2016
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STATEMENT OF OPERATIONS
Net interest income before provision for losses on loans and loan commitments totaled $38.9 million for the first quarter of 2016, a decrease of 1.3% from $39.4 million for the fourth quarter of 2015 and an increase of 6.6% from $36.5 million for the first quarter of 2015. Relative to the fourth quarter of 2015, net interest income was negatively impacted by a decrease in net interest margin.
Net interest margin was 3.54% for the first quarter of 2016, compared to 3.56% for the fourth quarter of 2015, and 3.69% for the first quarter of 2015. The decrease in net interest margin compared to the fourth quarter of 2015 was primarily attributable to a decline in the average yield on loans. Net interest margin compression from the decline in loan yield was partially offset by the increase in net interest margin that resulted from a decrease in lower yielding fed funds sold and others.
Loan yields were 4.61% for the first quarter of 2016, compared to 4.80% for the fourth quarter of 2015, and 4.78% for the first quarter of 2015. The decline in loan yields for the first quarter of 2016, compared to the fourth quarter of 2015, was primarily due to the decline in yield on commercial real estate loans as loans were originated and renewed at rates lower than the existing portfolio.
The total cost of deposits was 0.62% for the first quarter of 2016, compared to 0.61% for the fourth quarter of 2015, and 0.58% for the first quarter of 2015. Compared to the fourth quarter of 2015, the increase in the total cost of deposits was primarily due to a slight increase in interest rates in money market and time deposits.
Non-Interest Income
Total non-interest income was $8.5 million for the first quarter of 2016, compared to $9.5 million for the fourth quarter of 2015, and $15.3 million for the first quarter of 2015.
The Company recognized $2.7 million in gain on sales of loans during the first quarter of 2016, compared to $2.9 million for the fourth quarter of 2015, and $6.8 million for the first quarter of 2015. Gain on sale of loans in the first quarter of 2016 consisted of $1.3 million in gains on sales of SBA loans, $830,000 in gains on sales of residential mortgage loans, and $545,000 in gains from the sale of other loans. The decline in gain on sale of loans for the first quarter of 2016, compared to the previous quarter, was primarily due to a decline in sale of SBA loans, while the decline from the first quarter of 2015 was primarily due to a decline in the gain on sale of non-performing loans and a reduction in SBA loan sales.
Other non-interest income totaled $2.9 million for the first quarter of 2016, compared to $3.7 million for the fourth quarter of 2015 and $5.4 million for the first quarter of 2015. The decrease in other non-interest income compared to the fourth quarter of 2015 was due to a decline in recoveries on acquired assets in addition to a decline in loan servicing income. During the fourth quarter of 2015, the Company had a large increase in recoveries on assets acquired from BankAsiana and Saehan. The decrease in other non-interest income compared to the first quarter of 2015 was due to the decline in income recorded from the change in the fair value of the Company’s servicing asset and to a lesser extent a decline in income recorded from the fair value change of mortgage derivatives.
Non-Interest Expense
Total non-interest expense was $26.7 million for the first quarter of 2016, compared with $26.6 million for the fourth quarter of 2015, and $22.9 million for the first quarter of 2015. Non-interest expense in the first quarter of 2016 included $458,000 in merger-related costs consisting of mostly legal expenses related to the planned merger of equals with BBCN.
Total salaries and employee benefits expense was $14.8 million for the first quarter of 2016, compared to $13.7 million for the fourth quarter of 2015, and $12.7 million for the first quarter of 2015. The
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increase in salaries and employee benefits for the first quarter of 2016 compared to the fourth quarter of 2015 was primarily due to an increase in stock-based compensation expense, incentive compensation, and commissions.
The Company’s operating efficiency ratio was 56.3% for the first quarter of 2016, compared with 54.3% for the fourth quarter of 2015, and 44.3% for the first quarter of 2015.
BALANCE SHEET
Total loans receivable (net of deferred fees and costs) were $3.79 billion at March 31, 2016, compared to $3.82 billion at December 31, 2015. During the first quarter of 2016, a decrease in commercial real estate and commercial and industrial loans, was partially offset by an increase in construction loans. Total loans held-for-sale increased to $90.4 million at March 31, 2016, from $25.2 million at December 31, 2015, due to an increase in both residential mortgage and SBA loans held-for-sale.
The following table shows total loans receivable, loans held-for-sale, and total loans by loan type:
| | Quarter Ended |
(Dollars In Thousands) (Unaudited) | | March 31, 2016 | | December 31, 2015 | | September 30, 2015 | | June 30, 2015 | | March 31, 2015 |
| | | | | | | | | | |
Construction | | $ | 36,181 | | $ | 19,541 | | $ | 18,146 | | $ | 16,050 | | $ | 26,117 |
Real Estate Secured | | 2,962,964 | | 2,992,824 | | 2,810,420 | | 2,723,458 | | 2,701,800 |
Commercial & Industrial | | 783,487 | | 792,243 | | 789,422 | | 765,655 | | 769,438 |
Consumer | | 12,304 | | 15,096 | | 13,284 | | 14,622 | | 15,465 |
Total Loans Receivable * | | 3,794,936 | | 3,819,704 | | 3,631,272 | | 3,519,785 | | 3,512,820 |
Loans Held-For-Sale | | 90,392 | | 25,223 | | 13,316 | | 25,269 | | 10,204 |
Total Loans * | | $ | 3,885,328 | | $ | 3,844,927 | | $ | 3,644,588 | | $ | 3,545,054 | | $ | 3,523,024 |
* 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) | | March 31, 2016 | | December 31, 2015 | | September 30, 2015 | | June 30, 2015 | | March 31, 2015 |
| | | | | | | | | | | | | | | | | | | | |
Real Estate Secured | | $ 127,145 | | 46% | | $ 273,613 | | 54% | | $ 176,605 | | 43% | | $ 121,066 | | 41% | | $ 138,145 | | 35% |
Commercial & Industrial | | 34,268 | | 12% | | 94,128 | | 19% | | 107,952 | | 26% | | 46,438 | | 16% | | 59,837 | | 15% |
Consumer | | – | | 0% | | 55 | | 0% | | 360 | | 0% | | 124 | | 0% | | 1,640 | | 0% |
SBA | | 26,801 | | 10% | | 37,897 | | 8% | | 21,871 | | 5% | | 25,648 | | 9% | | 31,718 | | 8% |
Residential Mortgage | | 87,866 | | 32% | | 95,159 | | 19% | | 102,383 | | 25% | | 89,652 | | 31% | | 11,357 | | 3% |
Warehouse Lines of Credit* | | – | | 0% | | 2,000 | | 0% | | 7,000 | | 1% | | 10,000 | | 3% | | 155,000 | | 39% |
Total Loan Originations | | $ 276,080 | | 100% | | $ 502,852 | | 100% | | $ 416,171 | | 100% | | $ 292,928 | | 100% | | $ 397,697 | | 100% |
* Warehouse lines of credit are reported as commercial and industrial loans on the consolidated balance sheet.
Originations for the first quarter of 2016 totaled $276.1 million, compared to $502.9 million for the fourth quarter of 2015, and $397.7 million for the first quarter of 2015. The decrease in loan originations for the three months ended March 31, 2016, compared to the previous quarter, was due to weaker loan demand experienced during the first quarter of 2016 due to seasonality and other market factors.
Total SBA loans held-for-sale at the end of the first quarter of 2016 were $11.6 million, compared to $5.5 million at the end of the previous quarter. Residential mortgage loans held-for-sale at the end of the first quarter of 2016 were $78.0 million, compared to $19.7 million at the end of the previous quarter.
Total deposits were $3.85 billion at March 31, 2016, compared with $3.84 billion at December 31, 2015, with increases in lower-cost deposit categories offsetting declines in time deposits.
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CREDIT QUALITY
During the first quarter of 2016 the Company set aside $300,000 in provision for losses on loans and loan commitments.
The allowance for loan losses totaled $52.7 million, or 1.38% of gross loans (excluding loans held-for-sale), at March 31, 2016, compared to $52.4 million, or 1.37% of gross loans (excluding loans held-for-sale), at December 31, 2015. The coverage ratio of the allowance for loan losses to non-performing assets was 149.08% at March 31, 2016, compared with 169.74% at December 31, 2015.
Special mention loans, or criticized loans totaled $161.1 million at March 31, 2016, compared to $120.0 million at December 31, 2015. The increase in criticized loans at March 31, 2016 compared to December 31, 2015 was primarily due to one borrower with two commercial loans totaling $26.0 million. The commercial loans were transferred to criticized category in the first quarter of 2016 due to temporary deterioration in the borrower’s financial performance, but the Company does not expect any losses to be incurred on these commercial loans at this time. Total classified loans at March 31, 2016 was $85.2 million, compared to $80.4 million at December 31, 2015.
Non-Performing Loans
At March 31, 2016, total non-performing loans were $25.2 million, or 0.65% of total gross loans, compared to $21.7 million, or 0.56% of total gross loans, at December 31, 2015.
The following table shows total non-performing loans by loan type:
NON-PERFORMING LOANS | | Quarter Ended |
(Dollars In Thousands) (Unaudited) | | Mar 31, 2016 | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | | Mar 31, 2015 |
(Net of SBA Guaranty Portions) | | | | | | | | | | |
Real Estate Secured | | $ | 20,007 | | $ | 15,422 | | $ | 20,123 | | $ | 23,235 | | $ | 25,329 |
Commercial & Industrial | | 5,194 | | 6,272 | | 7,058 | | 7,617 | | 7,193 |
Total Non-Performing Loans | | $ | 25,201 | | $ | 21,694 | | $ | 27,181 | | $ | 30,852 | | $ | 32,522 |
Net Charge-offs/Recoveries
During the first quarter of 2016, the Company had total gross charge-offs of $598,000, and recoveries of $361,000, which resulted in net charge-offs of $237,000, compared to net recoveries of $2.3 million for the fourth 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) | | Mar 31, 2016 | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | | Mar 31, 2015 |
| | | | | | | | | | |
Real Estate Secured | | $ | 219 | | $ | 13 | | $ | 605 | | $ | 249 | | $ | 325 |
Commercial & Industrial | | 379 | | 1,392 | | 1,270 | | 310 | | 999 |
Total Loan Charge-Offs | | $ | 598 | | $ | 1,405 | | $ | 1,875 | | $ | 559 | | $ | 1,324 |
LOAN RECOVERIES | | Quarter Ended |
(Dollars In Thousands) (Unaudited) | | Mar 31, 2016 | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | | Mar 31, 2015 |
| | | | | | | | | | |
Real Estate Secured | | $ | 46 | | $ | 3,242 | | $ | 1,867 | | $ | 970 | | $ | 193 |
Commercial & Industrial | | 315 | | 452 | | 803 | | 240 | | 667 |
Consumer | | – | | – | | – | | – | | 10 |
Total Loan Recoveries | | $ | 361 | | $ | 3,694 | | $ | 2,670 | | $ | 1,210 | | $ | 870 |
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Other measures of credit quality are shown in the following tables:
DELINQUENT LOANS - By Days Past Due | | Quarter Ended |
(Dollars In Thousands) (Unaudited) | | Mar 31, 2016 | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | | Mar 31, 2015 |
(Net of SBA Guaranty Portions) | | | | | | | | | | |
30 - 59 Days Past Due | | $ | 3,608 | | $ | 4,315 | | $ | 4,911 | | $ | 3,615 | | $ | 7,375 |
60 - 89 Days Past Due | | 1,491 | | 1,643 | | 1,143 | | 7,576 | | 421 |
90 Days, and still accruing | | – | | – | | – | | – | | – |
Total Delinquent Loans | | $ | 5,099 | | $ | 5,958 | | $ | 6,054 | | $ | 11,191 | | $ | 7,796 |
TROUBLED DEBT RESTRUCTURED LOANS (“TDR”) | | Quarter Ended |
(Dollars In Thousands) (Unaudited) | | Mar 31, 2016 | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | | Mar 31, 2015 |
(Net of SBA Guaranty Portions) | | | | | | | | | | |
Real Estate Secured | | $ | 23,376 | | $ | 22,311 | | $ | 24,188 | | $ | 29,424 | | $ | 28,612 |
Commercial & Industrial | | 15,015 | | 15,681 | | 16,578 | | 13,469 | | 11,682 |
Total TDR Loans | | $ | 38,391 | | $ | 37,992 | | $ | 40,766 | | $ | 42,893 | | $ | 40,294 |
LOAN CLASSIFICATIONS | | Quarter Ended |
(Dollars In Thousands) (Unaudited) | | Mar 31, 2016 | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | | Mar 31, 2015 |
(Net of SBA Guaranty Portions) | | | | | | | | | | |
Special Mention | | $ | 161,119 | | $ | 120,019 | | $ | 118,290 | | $ | 86,118 | | $ | 81,049 |
Substandard | | 85,193 | | 80,310 | | 82,000 | | 96,666 | | 89,402 |
Doubtful | | 41 | | 41 | | 2,182 | | 5,301 | | 9,822 |
Total Criticized and Classified Loans | | $ | 246,353 | | $ | 200,370 | | $ | 202,472 | | $ | 188,085 | | $ | 180,273 |
| | | | | | | | | | |
Total Classified Loans | | $ | 85,234 | | $ | 80,351 | | $ | 84,182 | | $ | 101,967 | | $ | 99,224 |
CAPITAL RATIOS
As of March 31, 2016, 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) | | March 31, 2016 | | Well Capitalized
Regulatory Requirements | | Total Excess Above Well
Capitalized Requirements |
Tier 1 Leverage Capital Ratio | | 11.67% | | 5.00% | | 308,094 |
Tier 1 Common Equity Risk-Based Capital Ratio | | 11.47% | | 6.50% | | 203,480 |
Tier 1 Risk-Based Capital Ratio | | 13.17% | | 8.00% | | 211,646 |
Total Risk-Based Capital Ratio | | 14.42% | | 10.00% | | 180,972 |
Tangible Common Equity To Tangible Assets * | | 10.23% | | N/A | | N/A |
Tangible Common Equity Per Common Share * | | $ | 6.03 | | 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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CONFERENCE CALL
Management will host its quarterly conference call on April 19, 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 83078775.
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 five loan production offices of which four are utilized primarily for the origination of loans under the Small Business Administration lending program located in 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 has filed with the SEC a preliminary Registration Statement on Form S-4 that includes a Joint Proxy Statement/Prospectus of Wilshire and BBCN, as well as other relevant documents concerning the proposed transaction. Shareholders are urged to read the preliminary Registration Statement and the Joint Proxy Statement/Prospectus regarding the merger and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they 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
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participants of BBCN and Wilshire in the solicitation of proxies in respect of the merger is included in the preliminary Registration Statement and Joint Proxy Statement/Prospectus filed with the SEC.
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, 2015, and BBCN Bancorp’s Form 10-K for the year ended December 31, 2015, 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) | | March 31, | | December 31, | | Three Months | | March 31, | | Twelve Months |
| | 2016 | | 2015 | | % Change | | 2015 | | % Change |
ASSETS: | | | | | | | | | | |
Cash and due from banks | | $ | 115,444 | | $ | 118,089 | | -2% | | $ | 353,438 | | -67% |
Federal funds sold and other cash equivalents | | 133 | | 104 | | 28% | | 164 | | -19% |
Total Cash and Cash Equivalents | | 115,577 | | 118,193 | | -2% | | 353,602 | | -67% |
| | | | | | | | | | |
Deposits held in other financial institutions | | – | | – | | 0% | | 8,000 | | -100% |
| | | | | | | | | | |
Investment securities available for sale | | 512,257 | | 535,524 | | -4% | | 329,343 | | 56% |
Investment securities held to maturity | | 19 | | 21 | | -10% | | 25 | | -24% |
Total Investment Securities | | 512,276 | | 535,545 | | -4% | | 329,368 | | 56% |
| | | | | | | | | | |
Total Loans Held-For-Sale | | 90,392 | | 25,223 | | 258% | | 10,204 | | 786% |
| | | | | | | | | | |
Real estate construction | | 36,181 | | 19,541 | | 85% | | 26,117 | | 39% |
Residential real estate | | 226,960 | | 269,117 | | -16% | | 171,117 | | 33% |
Commercial real estate | | 2,736,004 | | 2,723,707 | | 0% | | 2,530,683 | | 8% |
Commercial and industrial | | 783,487 | | 792,243 | | -1% | | 769,438 | | 2% |
Consumer | | 12,304 | | 15,096 | | -18% | | 15,465 | | -20% |
Total loans receivable, net of deferred fees and costs | | 3,794,936 | | 3,819,704 | | -1% | | 3,512,820 | | 8% |
Allowance for loan losses | | (52,668) | | (52,405) | | 1% | | (48,170) | | 9% |
Loans Receivable, Net of Allowance for Loan Losses | | 3,742,268 | | 3,767,299 | | -1% | | 3,464,650 | | 8% |
| | | | | | | | | | |
Accrued interest receivable | | 9,171 | | 9,226 | | -1% | | 8,581 | | 7% |
Due from customers on acceptances | | 8,900 | | 7,250 | | 23% | | 6,472 | | 38% |
Other real estate owned | | 10,128 | | 9,179 | | 10% | | 7,411 | | 37% |
Premises and equipment | | 15,718 | | 16,096 | | -2% | | 14,058 | | 12% |
Federal home loan bank (FHLB) stock, at cost | | 16,539 | | 16,539 | | 0% | | 16,539 | | 0% |
Cash surrender value of life insurance | | 25,174 | | 25,028 | | 1% | | 23,470 | | 7% |
Investment in affordable housing partnerships | | 47,257 | | 48,867 | | -3% | | 43,134 | | 10% |
Deferred income taxes | | 17,897 | | 21,489 | | -17% | | 16,646 | | 8% |
Servicing assets | | 19,324 | | 19,894 | | -3% | | 19,813 | | -2% |
Goodwill | | 67,473 | | 67,473 | | 0% | | 67,473 | | 0% |
Other assets | | 22,307 | | 26,167 | | -15% | | 23,857 | | -6% |
TOTAL ASSETS | | $ | 4,720,401 | | $ | 4,713,468 | | 0% | | $ | 4,413,278 | | 7% |
| | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY: | | | | | | | | | | |
Non-interest bearing demand deposits | | $ | 1,106,805 | | $ | 1,088,436 | | 2% | | $ | 997,803 | | 11% |
Savings and interest checking | | 173,557 | | 172,038 | | 1% | | 161,234 | | 8% |
Money market deposits | | 993,733 | | 977,697 | | 2% | | 886,092 | | 12% |
Time deposits in denomination of $100,000 or more | | 1,336,311 | | 1,349,440 | | -1% | | 1,322,743 | | 1% |
Other time deposits | | 243,166 | | 252,265 | | -4% | | 267,294 | | -9% |
Total Deposits | | 3,853,572 | | 3,839,876 | | 0% | | 3,635,166 | | 6% |
| | | | | | | | | | |
FHLB borrowings | | 200,000 | | 220,000 | | -9% | | 150,000 | | 33% |
Acceptance outstanding | | 8,900 | | 7,250 | | 23% | | 6,472 | | 38% |
Junior subordinated debentures | | 72,077 | | 72,016 | | 0% | | 71,837 | | 0% |
Accrued interest payable | | 2,400 | | 2,105 | | 14% | | 2,406 | | 0% |
Other liabilities | | 37,204 | | 39,291 | | -5% | | 41,818 | | -11% |
Total Liabilities | | 4,174,153 | | 4,180,538 | | 0% | | 3,907,699 | | 7% |
| | | | | | | | | | |
Common stock | | 234,386 | | 233,341 | | 0% | | 232,207 | | 1% |
Retained earnings | | 304,763 | | 296,303 | | 3% | | 267,660 | | 14% |
Accumulated other comprehensive income | | 7,099 | | 3,286 | | 116% | | 5,712 | | 24% |
Total Shareholders’ Equity | | 546,248 | | 532,930 | | 2% | | 505,579 | | 8% |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | | $ | 4,720,401 | | $ | 4,713,468 | | 0% | | $ | 4,413,278 | | 7% |
(continued)
8
Wilshire Bancorp Inc. – 1Q 2016 Results
April 18, 2016
Page 9
CONSOLIDATED STATEMENT OF OPERATIONS | | | | | |
(Dollars In Thousands, Except Per Share Data) (Unaudited) | | | | | |
| | Quarter Ended | | Three Mths | | Quarter Ended | | Twelve Mths |
| | March 31, 2016 | | December 31, 2015 | | % Change | | March 31, 2015 | | % Change |
| | | | | | | | | | |
INTEREST INCOME | | | | | | | | | | |
Interest and fees on loans | | $ | 43,665 | | $ | 43,797 | | 0% | | $ | 40,088 | | 9% |
Interest on investment securities | | 2,460 | | 2,626 | | -6% | | 1,968 | | 25% |
Interest on federal funds sold and others | | 124 | | 228 | | -46% | | 192 | | -35% |
Total Interest Income | | 46,249 | | 46,651 | | -1% | | 42,248 | | 9% |
| | | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | |
Deposits | | 5,932 | | 5,945 | | 0% | | 5,097 | | 16% |
FHLB advances and other borrowings | | 1,408 | | 1,287 | | 9% | | 660 | | 113% |
Total Interest Expense | | 7,340 | | 7,232 | | 1% | | 5,757 | | 27% |
| | | | | | | | | | |
Net interest income before provision for losses on loans and loan commitments | | 38,909 | | 39,419 | | -1% | | 36,491 | | 7% |
Provision for losses on loans and loan commitments | | 300 | | – | | 0% | | – | | 0% |
| | | | | | | | | | |
Net interest income after provision for losses on loans and loan commitments | | 38,609 | | 39,419 | | -2% | | 36,491 | | 6% |
| | | | | | | | | | |
NONINTEREST INCOME | | | | | | | | | | |
Service charges on deposits | | 2,851 | | 2,903 | | -2% | | 3,107 | | -8% |
Gain on sale of SBA loans | | 1,297 | | 1,958 | | -34% | | 2,245 | | -42% |
Gain on sale of residential loans | | 830 | | 898 | | -8% | | 261 | | 218% |
Gain on sale of other loans | | 545 | | 62 | | 779% | | 4,300 | | -87% |
Other | | 2,935 | | 3,725 | | -21% | | 5,354 | | -45% |
Total Noninterest Income | | 8,458 | | 9,546 | | -11% | | 15,267 | | -45% |
| | | | | | | | | | |
NONINTEREST EXPENSES | | | | | | | | | | |
Salaries and employee benefits | | 14,783 | | 13,676 | | 8% | | 12,665 | | 17% |
Occupancy and equipment | | 3,276 | | 3,390 | | -3% | | 3,373 | | -3% |
Data processing | | 1,204 | | 1,156 | | 4% | | 1,042 | | 16% |
Merger-related costs | | 458 | | 994 | | -54% | | – | | 0% |
Other | | 6,932 | | 7,348 | | -6% | | 5,829 | | 19% |
Total Noninterest Expenses | | 26,653 | | 26,564 | | 0% | | 22,909 | | 16% |
| | | | | | | | | | |
Income before income taxes | | 20,414 | | 22,401 | | -9% | | 28,849 | | -29% |
Income taxes provision | | 7,224 | | 8,453 | | -15% | | 10,230 | | -29% |
NET INCOME | | $ | 13,190 | | $ | 13,948 | | -5% | | $ | 18,619 | | -29% |
| | | | | | | | | | |
PER COMMON SHARE INFORMATION: | | | | | | | | | | |
Basic income per common share | | $ | 0.17 | | $ | 0.18 | | -6% | | $ | 0.24 | | -29% |
Diluted income per common share | | $ | 0.17 | | $ | 0.18 | | -5% | | $ | 0.24 | | -29% |
| | | | | | | | | | |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | | | | |
Basic | | 78,674,604 | | 78,601,082 | | | | 78,326,505 | | |
Diluted | | 78,974,448 | | 78,942,078 | | | | 78,655,365 | | |
| | | | | | | | | | | | | | | |
(continued)
9
Wilshire Bancorp Inc. – 1Q 2016 Results
April 18, 2016
Page 10
SUMMARY OF FINANCIAL DATA
(Dollars In Thousands, Except Per Share Data) (Unaudited)
| | Quarter Ended | | |
AVERAGE BALANCES | | March 31, 2016 | | | | December 31, 2015 | | | | March 31, 2015 | | |
| | | | | | | | | | | | |
Average Assets | | 4,698,333 | | | | $ | 4,728,510 | | | | $ | 4,255,625 | | |
Average Equity | | 544,527 | | | | 534,938 | | | | 500,097 | | |
Average Net Loans | | 3,789,591 | | | | 3,650,672 | | | | 3,352,433 | | |
Average Deposits | | 3,833,838 | | | | 3,922,849 | | | | 3,490,282 | | |
Average Time Deposits of $100,000 or more | | 1,342,858 | | | | 1,407,298 | | | | 1,297,961 | | |
Average FHLB & Other Borrowings | | 201,209 | | | | 151,848 | | | | 150,655 | | |
Average Interest Earning Assets | | 4,417,456 | | | | 4,445,026 | | | | 3,976,435 | | |
| | | | | | | | | | | | | | |
| | Quarter Ended | | |
PROFITABILITY | | March 31, 2016 | | | | December 31, 2015 | | | | March 31, 2015 | | |
| | | | | | | | | | | | |
Annualized Return on Average Assets | | 1.12% | | | | 1.18% | | | | 1.75% | | |
Annualized Return on Average Equity | | 9.69% | | | | 10.43% | | | | 14.89% | | |
Efficiency Ratio | | 56.27% | | | | 54.25% | | | | 44.26% | | |
Annualized Operating Expense/Average Assets | | 2.27% | | | | 2.25% | | | | 2.15% | | |
Annualized Net Interest Margin | | 3.54% | | | | 3.56% | | | | 3.69% | | |
| | As Of |
DEPOSIT COMPOSITION | | March 31, 2016 | | Cost of
Funds | | December 31, 2015 | | Cost of
Funds | | March 31, 2015 | | Cost of
Funds |
| | | | | | | | | | | | |
Noninterest Bearing Demand Deposits | | 28.7% | | 0.00% | | 28.3% | | 0.00% | | 27.4% | | 0.00% |
Savings & Interest Checking | | 4.5% | | 1.25% | | 4.5% | | 1.26% | | 4.4% | | 1.31% |
Money Market Deposits | | 25.8% | | 0.71% | | 25.5% | | 0.69% | | 24.4% | | 0.67% |
Time Deposits of $100,000 or More | | 34.7% | | 0.91% | | 35.1% | | 0.89% | | 36.4% | | 0.80% |
Other Time Deposits | | 6.3% | | 0.92% | | 6.6% | | 0.91% | | 7.4% | | 0.86% |
Total Deposits | | 100.0% | | 0.62% | | 100.0% | | 0.61% | | 100.0% | | 0.58% |
| | As Of | | |
CAPITAL RATIOS | | March 31, 2016 | | | | December 31, 2015 | | | | March 31, 2015 | | |
| | | | | | | | | | | | |
Tier 1 Leverage Ratio | | 11.67% | | | | 11.30% | | | | 11.86% | | |
Tier 1 Common Equity Risk-Based Capital Ratio | | 11.47% | | | | 11.23% | | | | 11.58% | | |
Tier 1 Risk-Based Capital Ratio | | 13.17% | | | | 12.86% | | | | 13.38% | | |
Total Risk-Based Capital Ratio | | 14.42% | | | | 14.11% | | | | 14.64% | | |
Total Shareholders’ Equity | | $ | 546,248 | | | | $ | 532,930 | | | | $ | 505,579 | | |
Book Value Per Common Share | | $ | 6.93 | | | | $ | 6.78 | | | | $ | 6.45 | | |
Tangible Common Equity Per Common Share * | | $ | 6.03 | | | | $ | 5.88 | | | | $ | 5.54 | | |
Tangible Common Equity to Tangible Assets * | | 10.23% | | | | 9.96% | | | | 10.00% | | |
* Excludes goodwill and other intangible assets
(continued)
10
Wilshire Bancorp Inc. – 1Q 2016 Results
April 18, 2016
Page 11
ALLOWANCE FOR LOAN LOSSES
(Dollars In Thousands) (Unaudited)
| | Quarter Ended |
| | March 31, 2016 | | December 31, 2015 | | September 30, 2015 | | June 30, 2015 | | March 31, 2015 |
| | | | | | | | | | |
Balance at beginning of period | | $ 52,405 | | $ 50,116 | | $ 48,821 | | $ 48,170 | | $ 48,624 |
Provision for losses on loans | | 500 | | – | | 500 | | – | | – |
Recoveries on loans previously charged-off | | 361 | | 3,694 | | 2,670 | | 1,210 | | 870 |
Gross loan charge-offs | | (598) | | (1,405) | | (1,875) | | (559) | | (1,324) |
Balance at end of period | | $ 52,668 | | $ 52,405 | | $ 50,116 | | $ 48,821 | | $ 48,170 |
| | | | | | | | | | |
Net Loan Charge-offs / Average Net Loans | | 0.01% | | -0.06% | | -0.02% | | -0.02% | | 0.01% |
Charge-offs / Average Total Loans | | 0.02% | | 0.04% | | 0.05% | | 0.02% | | 0.04% |
Allowance for Loan Losses / Gross Loans* | | 1.38% | | 1.37% | | 1.38% | | 1.38% | | 1.37% |
Allowance for Loan Losses / Non-accrual Loans | | 208.99% | | 241.56% | | 184.38% | | 158.24% | | 148.12% |
Allowance for Loan Losses / Non-performing Loans | | 208.99% | | 241.56% | | 184.38% | | 158.24% | | 148.12% |
Allowance for Loan Losses / Non-performing Assets | | 149.08% | | 169.74% | | 130.23% | | 130.50% | | 120,63% |
Allowance for Loan Losses / Classified Loans | | 61.79% | | 65.22% | | 59.53% | | 47.88% | | 48.55% |
* Excludes held-for-sale loans
NON-PERFORMING ASSETS | | | | | | | | | | |
| | | | | | | | | | |
(Dollars In Thousands, Net of SBA Guaranty) | | Quarter Ended |
(Unaudited) | | March 31, 2016 | | December 31, 2015 | | September 30, 2015 | | June 30, 2015 | | March 31, 2015 |
| | | | | | | | | | |
Non-accrual loans | | $ 25,201 | | $ 21,694 | | $ 27,181 | | $ 30,852 | | $ 32,522 |
Loans 90 days or more past due and still accruing | | – | | – | | – | | – | | – |
Total Non-performing Loans | | 25,201 | | 21,694 | | 27,181 | | 30,852 | | 32,522 |
| | | | | | | | | | |
Total OREO | | 10,128 | | 9,179 | | 11,302 | | 6,559 | | 7,411 |
Total Non-performing Assets | | $ 35,329 | | $ 30,873 | | $ 38,483 | | $ 37,411 | | $ 39,933 |
| | | | | | | | | | |
Total Non-performing Loans/Gross Loans | | 0.65% | | 0.56% | | 0.74% | | 0.87% | | 0.92% |
Total Non-performing Assets/Total Assets | | 0.75% | | 0.65% | | 0.81% | | 0.81% | | 0.90% |
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS
(Dollars In Thousands) (Unaudited)
| | Quarter Ended | | | | |
| | March 31, 2016 | | December 31, 2015 | | March 31, 2015 | | | | |
| | | | | | | | | | |
Balance at beginning of period | | $ 1,261 | | $ 1,261 | | $ 1,061 | | | | |
Provision for losses on loan commitments | | (200) | | – | | – | | | | |
Balance at end of period | | $ 1,061 | | $ 1,261 | | $ 1,061 | | | | |
(continued)
11
Wilshire Bancorp Inc. – 1Q 2016 Results
April 18, 2016
Page 12
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
| | For the Quarter Ended |
| | March 31, 2016 | | December 31, 2015 | | March 31, 2015 |
| | | | | | | | | | | | | | | | | | |
| | 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 | | $ 3,050,251 | | $ 35,025 | | 4.59% | | $ 2,904,530 | | $ 34,851 | | 4.80% | | $ 2,732,436 | | $ 32,565 | | 4.77% |
Commercial Loans | | 737,336 | | 7,486 | | 4.06% | | 743,686 | | 7,662 | | 4.12% | | 616,848 | | 6,282 | | 4.07% |
Consumer Loans | | 12,522 | | 86 | | 2.75% | | 12,650 | | 96 | | 3.04% | | 13,141 | | 116 | | 3.53% |
Total Gross Loans | | 3,800,109 | | 42,597 | | 4.48% | | 3,660,866 | | 42,609 | | 4.66% | | 3,362,425 | | 38,963 | | 4.64% |
Deferred Fees and Costs \ Loan Fees | | (10,518) | | 1,068 | | | | (10,194) | | 1,188 | | | | (9,992) | | 1,125 | | |
Total Loans * | | 3,789,591 | | 43,665 | | 4.61% | | 3,650,672 | | 43,797 | | 4.80% | | 3,352,433 | | 40,088 | | 4.78% |
| | | | | | | | | | | | | | | | | | |
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS: | | | | | | | | | | | | | | | | | | |
Investment Securities** | | 529,552 | | 2,460 | | 1.97% | | 496,571 | | 2,626 | | 2.24% | | 359,302 | | 1,968 | | 2.38% |
Deposits Held In Other Institutions | | – | | – | | 0.00% | | 4,223 | | 22 | | 2.08% | | 8,000 | | 32 | | 1.60% |
Federal Funds Sold & Others | | 98,313 | | 124 | | 0.50% | | 293,560 | | 206 | | 0.28% | | 256,700 | | 160 | | 0.25% |
Total Investment Securities and Other Earning Assets | | 627,865 | | 2,584 | | 1.74% | | 794,354 | | 2,854 | | 1.51% | | 624,002 | | 2,160 | | 1.49% |
| | | | | | | | | | | | | | | | | | |
TOTAL INTEREST-EARNING ASSETS | | $ 4,417,456 | | $46,249 | | 4.20% | | $ 4,445,026 | | $ 46,651 | | 4.21% | | $ 3,976,435 | | $ 42,248 | | 4.27% |
| | | | | | | | | | | | | | | | | | |
Total Non-Interest Earning Assets | | 280,877 | | | | | | 283,484 | | | | | | 279,190 | | | | |
TOTAL ASSETS | | $ 4,698,333 | | | | | | $ 4,728,510 | | | | | | $ 4,255,625 | | | | |
| | | | | | | | | | | | | | | | | | |
INTEREST BEARING LIABILITIES | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
INTEREST-BEARING DEPOSITS: | | | | | | | | | | | | | | | | | | |
Money Market | | $ 1,008,081 | | $ 1,787 | | 0.71% | | $ 982,301 | | $ 1,684 | | 0.69% | | $ 844,576 | | $ 1,406 | | 0.67% |
NOW | | 37,936 | | 25 | | 0.26% | | 34,586 | | 23 | | 0.27% | | 29,230 | | 17 | | 0.23% |
Savings | | 134,064 | | 511 | | 1.53% | | 132,186 | | 504 | | 1.53% | | 129,239 | | 502 | | 1.55% |
Time Deposits of $100,000 or More | | 1,342,858 | | 3,044 | | 0.91% | | 1,407,298 | | 3,132 | | 0.89% | | 1,297,961 | | 2,603 | | 0.80% |
Other Time Deposits | | 246,197 | | 565 | | 0.92% | | 263,322 | | 602 | | 0.91% | | 265,626 | | 569 | | 0.86% |
Total Interest Bearing Deposits | | 2,769,136 | | 5,932 | | 0.86% | | 2,819,693 | | 5,945 | | 0.84% | | 2,566,632 | | 5,097 | | 0.79% |
| | | | | | | | | | | | | | | | | | |
BORROWINGS: | | | | | | | | | | | | | | | | | | |
FHLB Advances and Other Borrowings | | 201,209 | | 905 | | 1.80% | | 151,848 | | 828 | | 2.18% | | 150,655 | | 232 | | 0.62% |
Junior Subordinated Debentures | | 72,037 | | 503 | | 2.79% | | 71,976 | | 459 | | 2.55% | | 71,799 | | 428 | | 2.38% |
Total Borrowings | | 273,246 | | 1,408 | | 2.06% | | 223,824 | | 1,287 | | 2.30% | | 222,454 | | 660 | | 1.19% |
| | | | | | | | | | | | | | | | | | |
TOTAL INTEREST BEARING LIABILITIES | | $ 3,042,382 | | $7,340 | | 0.97% | | $ 3,043,517 | | $ 7,232 | | 0.95% | | $ 2,789,086 | | $ 5,757 | | 0.83% |
| | | | | | | | | | | | | | | | | | |
Non-Interest Bearing Deposits | | 1,064,702 | | | | | | 1,103,156 | | | | | | 923,650 | | | | |
Other Liabilities | | 46,722 | | | | | | 46,899 | | | | | | 42,792 | | | | |
Shareholders’ Equity | | 544,527 | | | | | | 534,938 | | | | | | 500,097 | | | | |
TOTAL LIABILITIES AND EQUITY | | $ 4,698,333 | | | | | | $ 4,728,510 | | | | | | $ 4,255,625 | | | | |
| | | | | | | | | | | | | | | | | | |
NET INTEREST INCOME | | | | $ 38,909 | | | | | | $ 39,419 | | | | | | $ 36,491 | | |
| | | | | | | | | | | | | | | | | | |
NET INTEREST SPREAD | | | | | | 3.24% | | | | | | 3.26% | | | | | | 3.44% |
| | | | | | | | | | | | | | | | | | |
NET INTEREST MARGIN | | | | | | 3.54% | | | | | | 3.56% | | | | | | 3.69% |
* Allowance for loan losses excluded from average total loans and earning assets
** Tax equivalent ratios for investment securities
(continued)
12
Wilshire Bancorp Inc. – 1Q 2016 Results
April 18, 2016
Page 13
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 |
| | March 31, 2016 | | December 31, 2015 | | March 31, 2015 |
| | | | | | |
Total shareholders’ equity | | $ | 546,248 | | $ | 532,930 | | $ | 505,579 |
Goodwill and other intangible assets, net | | (70,458) | | (70,658) | | (71,385) |
Tangible common equity | | $ | 475,790 | | $ | 462,272 | | $ | 434,194 |
| | | | | | |
Total assets | | $ | 4,720,401 | | $ | 4,713,468 | | $ | 4,413,278 |
Goodwill and other intangible assets, net | | (70,458) | | (70,658) | | (71,385) |
Tangible assets | | $ | 4,649,943 | | $ | 4,642,810 | | $ | 4,341,893 |
| | | | | | |
Common shares outstanding | | 78,845,873 | | 78,608,717 | | 78,329,458 |
| | | | | | |
| | | | | | |
| | | | | | |
* Tangible Common Equity and Tangible Assets 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)
13
