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 $17.4 Million or
$0.22 per Share for Second Quarter 2016
LOS ANGELES, July 18, 2016 - Wilshire Bancorp, Inc. (NASDAQ: WIBC) (the “Company”), the holding company for Wilshire Bank (the “Bank”), today reported net income of $17.4 million, or $0.22 per diluted common share, for the quarter ended June 30, 2016. This compares to net income of $15.6 million, or $0.20 per diluted common share, for the same period of the prior year, and net income of $13.2 million, or $0.17 per diluted common share, for the first quarter of 2016.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, “We delivered a strong quarter with improvements in loan growth, non-interest income, credit quality and operating efficiencies. We continue to see well diversified loan production with growth in our commercial and construction portfolios, off-setting a slight decline in our commercial real estate portfolio.
“As we near the completion of our merger of equals with BBCN Bancorp, we are eagerly looking forward to the opportunity to better serve our markets as the premier Korean-American bank in the United States,” said Mr. Yoo.
Q2 2016 Summary
n | | Net income totaled $17.4 million, or $0.22 per diluted common share, for the second quarter of 2016 |
| | |
n | | Return on average assets of 1.46% and return on average equity of 12.51% for the second quarter of 2016 |
| | |
n | | Net interest margin of 3.53% for the second quarter of 2016, compared to 3.54% for the first quarter of 2016 |
| | |
n | | Gain on sale of OREO was $3.7 million for the second quarter of 2016, compared to $0 for the first quarter of 2016 |
| | |
n | | Loan originations of $408.1 million during the second quarter of 2016, compared to $276.1 million for the first quarter of 2016 |
| | |
n | | Loans receivable (net of deferred fees and costs) totaled $3.85 billion at June 30, 2016, an increase of 1.5% from $3.79 billion at March 31, 2016 |
| | |
n | | Total deposits were $4.01 billion at June 30, 2016, an increase of 4.1% from $3.85 billion at March 31, 2016 |
| | |
n | | Demand deposits totaled $1.13 billion at June 30, 2016, an increase of 2.5% from $1.11 billion at March 31, 2016 |
Wilshire Bancorp Inc. – 2Q 2016 Results
July 18, 2016
Page 2
STATEMENT OF OPERATIONS
Net interest income before provision for losses on loans and loan commitments totaled $39.2 million for the second quarter of 2016, an increase of 0.7% from $38.9 million for the first quarter of 2016 and an increase of 4.5% from $37.5 million for the second quarter of 2015. Relative to the first quarter of 2016, an increase in average earning assets was partially offset by a slight decline in net interest margin.
Net interest margin was 3.53% for the second quarter of 2016, compared to 3.54% for the first quarter of 2016, and 3.59% for the second quarter of 2015. The decrease in net interest margin compared to the first quarter of 2016 was primarily attributable to an increase in the cost of deposits.
Loan yields were 4.62% for the second quarter of 2016, compared to 4.61% for the first quarter of 2016, and 4.78% for the second quarter of 2015. The increase in loan yields for the second quarter of 2016, compared to the first quarter of 2016, was primarily due to an increase in yield on commercial real estate loans.
The total cost of deposits was 0.64% for the second quarter of 2016, compared to 0.62% for the first quarter of 2016, and 0.61% for the second quarter of 2015. Compared to the first quarter of 2016, the increase in the total cost of deposits was attributable to increases in rates in all deposit categories.
Non-Interest Income
Total non-interest income was $9.7 million for the second quarter of 2016, compared to $8.5 million for the first quarter of 2016, and $11.3 million for the second quarter of 2015.
The Company recognized $3.4 million in gain on sale of loans during the second quarter of 2016, compared to $2.7 million for the first quarter of 2016, and $4.2 million for the second quarter of 2015. The increase in gain on sale of loans for the second quarter of 2016, compared to the previous quarter, was due to an increase in sales of Small Business Administration (“SBA”) and residential mortgage loans. Gain on sale of loans in the second quarter of 2016 consisted of $2.0 million in gains on sales of SBA loans and $1.4 million in gains on sales of residential mortgage loans.
Other non-interest income totaled $3.5 million for the second quarter of 2016, compared to $2.9 million for the first quarter of 2016 and $4.0 million for the second quarter of 2015. The increase in other non-interest income, compared to the first quarter of 2016, was due to an increase in loan servicing income and income recorded from the fair value change of servicing assets.
Non-Interest Expense
Total non-interest expense was $21.6 million for the second quarter of 2016, compared with $26.7 million for the first quarter of 2016, and $24.7 million for the second quarter of 2015. Non-interest expense in the second quarter of 2016 included $527,000 in merger-related costs consisting mostly of consulting and legal expenses related to the proposed merger of equals with BBCN.
Total salaries and employee benefits expense was $13.1 million for the second quarter of 2016, compared to $14.8 million for the first quarter of 2016, and $14.2 million for the second quarter of 2015. The decrease in salaries and employee benefits for the second quarter of 2016, compared to the previous quarter, was primarily due to lower payroll taxes, bonus accrual expense, and stock-based compensation expense.
Other non-interest expense was $3.4 million for the second quarter of 2016, compared with $6.9 million for the first quarter of 2016, and $6.2 million for the second quarter of 2015. Other non-interest expense for the second quarter of 2016 was reduced by a $3.7 million gain on the sale of other real estate owned (OREO).
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Wilshire Bancorp Inc. – 2Q 2016 Results
July 18, 2016
Page 3
The Company’s operating efficiency ratio was 44.2% for the second quarter of 2016, compared with 56.3% for the first quarter of 2016, and 50.6% for the second quarter of 2015.The efficiency ratio before including gain on sale of OREO of $3.7 million was 51.8% for the second quarter of 2016.*
* “Efficiency ratio before gain on sale of OREO” is a Non-GAAP measure of financial performance. Please refer to the “Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures” table at the end of this press release for a reconciliation.
BALANCE SHEET
Total loans receivable (net of deferred fees and costs) were $3.85 billion at June 30, 2016, compared to $3.79 billion at March 31, 2016. During the second quarter of 2016, increases in commercial and industrial loans, residential real estate loans and real estate construction loans receivable were partially offset by a decrease in commercial real estate loans. Total loans held-for-sale decreased to $24.2 million at June 30, 2016, from $90.4 million at March 31, 2016, due to a decrease in both residential mortgage and SBA loans held-for-sale. During the second quarter of 2016, part of the residential mortgage loans sold were through a bulk sale.
The following table shows total loans receivable, loans held-for-sale, and total loans by loan type:
| | Quarter Ended | |
(Dollars In Thousands) (Unaudited) | | June 30, 2016 | | March 31, 2016 | | December 31, 2015 | | September 30, 2015 | | June 30, 2015 | |
| | | | | | | | | | | |
Construction | | $ 50,240 | | $ 36,181 | | $ 19,541 | | $ 18,146 | | $ 16,050 | |
Real Estate Secured | | 2,954,090 | | 2,962,964 | | 2,992,824 | | 2,810,420 | | 2,723,458 | |
Commercial & Industrial | | 838,008 | | 783,487 | | 792,243 | | 789,422 | | 765,655 | |
Consumer | | 9,590 | | 12,304 | | 15,096 | | 13,284 | | 14,622 | |
Total Loans Receivable * | | 3,851,928 | | 3,794,936 | | 3,819,704 | | 3,631,272 | | 3,519,785 | |
Loans Held-For-Sale | | 24,154 | | 90,392 | | 25,223 | | 13,316 | | 25,269 | |
Total Loans * | | $ 3,876,082 | | $ 3,885,328 | | $ 3,844,927 | | $ 3,644,588 | | $ 3,545,054 | |
* 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) | | June 30, 2016 | | March 31, 2016 | | December 31, 2015 | | September 30, 2015 | | June 30, 2015 | |
| | | | | | | | | | | | | | | | | | | | | |
Real Estate Secured | | $ 164,373 | | 40% | | $ 127,145 | | 46% | | $ 273,613 | | 54% | | $ 176,605 | | 43% | | $ 121,066 | | 41% | |
Commercial & Industrial | | 127,709 | | 31% | | 34,268 | | 12% | | 94,128 | | 19% | | 107,952 | | 26% | | 46,438 | | 16% | |
Consumer | | 46 | | 0% | | – | | 0% | | 55 | | 0% | | 360 | | 0% | | 124 | | 0% | |
SBA | | 26,314 | | 7% | | 26,801 | | 10% | | 37,897 | | 8% | | 21,871 | | 5% | | 25,648 | | 9% | |
Residential Mortgage | | 69,621 | | 17% | | 87,866 | | 32% | | 95,159 | | 19% | | 102,383 | | 25% | | 89,652 | | 31% | |
Warehouse Lines of Credit* | | 20,000 | | 5% | | – | | 0% | | 2,000 | | 0% | | 7,000 | | 1% | | 10,000 | | 3% | |
Total Loan Originations | | $ 408,063 | | 100% | | $ 276,080 | | 100% | | $ 502,852 | | 100% | | $ 416,171 | | 100% | | $ 292,928 | | 100% | |
* Warehouse lines of credit are reported as commercial and industrial loans on the consolidated balance sheet.
Originations for the second quarter of 2016 totaled $408.1 million, compared to $276.1 million for the first quarter of 2016, and $292.9 million for the second quarter of 2015. The increase in loan originations for the three months ended June 30, 2016, compared to the previous quarter, was primarily due to an increase in commercial and industrial loans and warehouse lines of credit.
Total SBA loans held-for-sale at the end of the second quarter of 2016 were $8.2 million, compared to $11.6 million at the end of the previous quarter. Residential mortgage loans held-for-sale at the end of the second quarter of 2016 were $15.2 million, compared to $78.0 million at the end of the previous quarter.
Total deposits increased to $4.01 billion at June 30, 2016, from $3.85 billion at March 31, 2016, primarily due to increases in non-interest bearing demand deposits and time deposits.
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July 18, 2016
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CREDIT QUALITY
During the second quarter of 2016, the Company continued to experience stable asset quality and a continued low level of charge-offs. As a result, the Company determined that no provision for losses on loans and loan commitments was required for the second quarter of 2016.
The allowance for loan losses totaled $53.2 million, or 1.38% of gross loans (excluding loans held-for-sale), at June 30, 2016, compared to $52.7 million, or 1.38% of gross loans (excluding loans held-for-sale), at March 31, 2016. The coverage ratio of the allowance for loan losses to non-performing assets was 173.24% at June 30, 2016, compared with 149.08% at March 31, 2016.
Non-Performing Loans
At June 30, 2016, total non-performing loans were $19.9 million, or 0.51% of gross loans, compared to $25.2 million, or 0.65% of total gross loans, at March 31, 2016.
The following table shows total non-performing loans by loan type:
NON-PERFORMING LOANS | | Quarter Ended | |
(Dollars In Thousands) (Unaudited) | | Jun 30, 2016 | | Mar 31, 2016 | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | |
(Net of SBA Guaranty Portions) | | | | | | | | | | | |
Real Estate Secured | | $ | 15,510 | | $ | 20,007 | | $ | 15,422 | | $ | 20,123 | | $ | 23,235 | |
Commercial & Industrial | | 4,344 | | 5,194 | | 6,272 | | 7,058 | | 7,617 | |
Total Non-Performing Loans | | $ | 19,854 | | $ | 25,201 | | $ | 21,694 | | $ | 27,181 | | $ | 30,852 | |
Net Charge-offs/Recoveries
During the second quarter of 2016, the Company had total gross charge-offs of $479,000, and recoveries of $993,000, which resulted in net recoveries of $514,000, compared to net charge-offs of $237,000 for the first quarter of 2016.
Gross charge-offs and recoveries by loan type are reflected in the tables below:
GROSS LOAN CHARGE-OFFS | | Quarter Ended | |
(Dollars In Thousands) (Unaudited) | | Jun 30, 2016 | | Mar 31, 2016 | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | |
| | | | | | | | | | | |
Real Estate Secured | | $ | 82 | | $ | 219 | | $ | 13 | | $ | 605 | | $ | 249 | |
Commercial & Industrial | | 296 | | 379 | | 1,392 | | 1,270 | | 310 | |
Consumer | | 101 | | – | | – | | – | | – | |
Total Loan Charge-Offs | | $ | 479 | | $ | 598 | | $ | 1,405 | | $ | 1,875 | | $ | 559 | |
LOAN RECOVERIES | | Quarter Ended | |
(Dollars In Thousands) (Unaudited) | | Jun 30, 2016 | | Mar 31, 2016 | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | |
| | | | | | | | | | | |
Real Estate Secured | | $ | 796 | | $ | 46 | | $ | 3,242 | | $ | 1,867 | | $ | 970 | |
Commercial & Industrial | | 191 | | 315 | | 452 | | 803 | | 240 | |
Consumer | | 6 | | – | | – | | – | | – | |
Total Loan Recoveries | | $ | 993 | | $ | 361 | | $ | 3,694 | | $ | 2,670 | | $ | 1,210 | |
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July 18, 2016
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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) | | Jun 30, 2016 | | Mar 31, 2016 | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | |
(Net of SBA Guaranty Portions) | | | | | | | | | | | |
30 - 59 Days Past Due | | $ | 7,454 | | $ | 3,608 | | $ | 4,315 | | $ | 4,911 | | $ | 3,615 | |
60 - 89 Days Past Due | | 253 | | 1,491 | | 1,643 | | 1,143 | | 7,576 | |
90 Days, and still accruing | | – | | – | | – | | – | | – | |
Total Delinquent Loans | | $ | 7,707 | | $ | 5,099 | | $ | 5,958 | | $ | 6,054 | | $ | 11,191 | |
TROUBLED DEBT RESTRUCTURED LOANS (“TDR”) | | Quarter Ended | |
(Dollars In Thousands) (Unaudited) | | Jun 30, 2016 | | Mar 31, 2016 | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | |
(Net of SBA Guaranty Portions) | | | | | | | | | | | |
Real Estate Secured | | $ | 20,671 | | $ | 23,376 | | $ | 22,311 | | $ | 24,188 | | $ | 29,424 | |
Commercial & Industrial | | 15,249 | | 15,015 | | 15,681 | | 16,578 | | 13,469 | |
Total TDR Loans | | $ | 35,920 | | $ | 38,391 | | $ | 37,992 | | $ | 40,766 | | $ | 42,893 | |
LOAN CLASSIFICATIONS | | Quarter Ended | |
(Dollars In Thousands) (Unaudited) | | Jun 30, 2016 | | Mar 31, 2016 | | Dec 31, 2015 | | Sep 30, 2015 | | Jun 30, 2015 | |
(Net of SBA Guaranty Portions) | | | | | | | | | | | |
Special Mention | | $ | 162,842 | | $ | 161,119 | | $ | 120,019 | | $ | 118,290 | | $ | 86,118 | |
Substandard | | 84,754 | | 85,193 | | 80,310 | | 82,000 | | 96,666 | |
Doubtful | | 41 | | 41 | | 41 | | 2,182 | | 5,301 | |
Total Criticized and Classified Loans | | $ | 247,637 | | $ | 246,353 | | $ | 200,370 | | $ | 202,472 | | $ | 188,085 | |
| | | | | | | | | | | | | | | | |
Total Classified Loans | | $ | 84,795 | | $ | 85,234 | | $ | 80,351 | | $ | 84,182 | | $ | 101,967 | |
CAPITAL RATIOS
As of June 30, 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) | | | | Well Capitalized | | Total Excess Above Well | |
| | June 30, 2016 | | Regulatory Requirements | | Capitalized Requirements | |
Tier 1 Leverage Capital Ratio | | 11.85% | | 5.00% | | 319,311 | |
Tier 1 Common Equity Risk-Based Capital Ratio | | 11.67% | | 6.50% | | 231,807 | |
Tier 1 Risk-Based Capital Ratio | | 13.35% | | 8.00% | | 221,338 | |
Total Risk-Based Capital Ratio | | 14.60% | | 10.00% | | 190,376 | |
Tangible Common Equity To Tangible Assets * | | 10.18% | | N/A | | N/A | |
Tangible Common Equity Per Common Share * | | $ | 6.22 | | 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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Wilshire Bancorp Inc. – 2Q 2016 Results
July 18, 2016
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CONFERENCE CALL
Management will host its quarterly conference call on July 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 844-578-9673 (domestic) or 508-637-5657 (international) and providing passcode number 42220175.
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 three 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 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.
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Wilshire Bancorp Inc. – 2Q 2016 Results
July 18, 2016
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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 Wilshire Bancorp, BBCN 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 remains subject to 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, as amended, and BBCN Bancorp’s Form 10-K for the year ended December 31, 2015, 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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Wilshire Bancorp Inc. – 2Q 2016 Results
July 18, 2016
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CONSOLIDATED BALANCE SHEET | | | | | | | | | | | |
(Dollars In Thousands) (Unaudited) | | June 30, | | March 31, | | Three Months | | June 30, | | Twelve Months | |
| | 2016 | | 2016 | | % Change | | 2015 | | % Change | |
ASSETS: | | | | | | | | | | | |
Cash and due from banks | | $ 301,103 | | $ 115,444 | | 161% | | $ 475,834 | | -37% | |
Federal funds sold and other cash equivalents | | 136 | | 133 | | 2% | | 54 | | 152% | |
Total Cash and Cash Equivalents | | 301,239 | | 115,577 | | 161% | | 475,888 | | -37% | |
| | | | | | | | | | | |
Deposits held in other financial institutions | | – | | – | | 0% | | 7,750 | | -100% | |
| | | | | | | | | | | |
Investment securities available for sale | | 490,574 | | 512,257 | | -4% | | 358,331 | | 37% | |
Investment securities held to maturity | | 18 | | 19 | | -5% | | 24 | | -25% | |
Total Investment Securities | | 490,592 | | 512,276 | | -4% | | 358,355 | | 37% | |
| | | | | | | | | | | |
Total Loans Held-For-Sale | | 24,154 | | 90,392 | | -73% | | 25,269 | | -4% | |
| | | | | | | | | | | |
Real estate construction | | 50,240 | | 36,181 | | 39% | | 16,050 | | 213% | |
Residential real estate | | 234,979 | | 226,960 | | 4% | | 192,732 | | 22% | |
Commercial real estate | | 2,719,111 | | 2,736,004 | | -1% | | 2,530,726 | | 7% | |
Commercial and industrial | | 838,008 | | 783,487 | | 7% | | 765,655 | | 9% | |
Consumer | | 9,590 | | 12,304 | | -22% | | 14,622 | | -34% | |
Total loans receivable, net of deferred fees and costs | | 3,851,928 | | 3,794,936 | | 2% | | 3,519,785 | | 9% | |
Allowance for loan losses | | (53,182) | | (52,668) | | 1% | | (48,821) | | 9% | |
Loans Receivable, Net of Allowance for Loan Losses | | 3,798,746 | | 3,742,268 | | 2% | | 3,470,964 | | 9% | |
| | | | | | | | | | | |
Accrued interest receivable | | 8,882 | | 9,171 | | -3% | | 8,635 | | 3% | |
Due from customers on acceptances | | 8,900 | | 8,900 | | 0% | | 3,940 | | 126% | |
Other real estate owned | | 10,844 | | 10,128 | | 7% | | 6,559 | | 65% | |
Premises and equipment | | 15,077 | | 15,718 | | -4% | | 14,366 | | 5% | |
Federal home loan bank (FHLB) stock, at cost | | 16,539 | | 16,539 | | 0% | | 16,539 | | 0% | |
Cash surrender value of life insurance | | 25,317 | | 25,174 | | 1% | | 23,610 | | 7% | |
Investment in affordable housing partnerships | | 45,627 | | 47,257 | | -3% | | 42,193 | | 8% | |
Deferred income taxes | | 17,803 | | 17,897 | | -1% | | 17,475 | | 2% | |
Servicing assets | | 19,219 | | 19,324 | | -1% | | 20,123 | | -4% | |
Goodwill | | 67,473 | | 67,473 | | 0% | | 67,473 | | 0% | |
Other assets | | 36,373 | | 22,307 | | 63% | | 31,958 | | 14% | |
TOTAL ASSETS | | $ 4,886,785 | | $ 4,720,401 | | 4% | | $ 4,591,097 | | 6% | |
| | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY: | | | | | | | | | | | |
Non-interest bearing demand deposits | | $ 1,134,671 | | $ 1,106,805 | | 3% | | $ 1,025,133 | | 11% | |
Savings and interest checking | | 174,123 | | 173,557 | | 0% | | 158,734 | | 10% | |
Money market deposits | | 1,005,142 | | 993,733 | | 1% | | 962,855 | | 4% | |
Time deposits in denomination of $100,000 or more | | 1,407,025 | | 1,336,311 | | 5% | | 1,475,340 | | -5% | |
Other time deposits | | 289,358 | | 243,166 | | 19% | | 280,894 | | 3% | |
Total Deposits | | 4,010,319 | | 3,853,572 | | 4% | | 3,902,956 | | 3% | |
| | | | | | | | | | | |
FHLB borrowings | | 200,000 | | 200,000 | | 0% | | 50,000 | | 300% | |
Acceptance outstanding | | 8,900 | | 8,900 | | 0% | | 3,940 | | 126% | |
Junior subordinated debentures | | 72,139 | | 72,077 | | 0% | | 71,895 | | 0% | |
Accrued interest payable | | 2,417 | | 2,400 | | 1% | | 2,373 | | 2% | |
Other liabilities | | 32,396 | | 37,204 | | -13% | | 44,350 | | -27% | |
Total Liabilities | | 4,326,171 | | 4,174,153 | | 4% | | 4,075,514 | | 6% | |
| | | | | | | | | | | |
Common stock | | 234,917 | | 234,386 | | 0% | | 232,893 | | 1% | |
Retained earnings | | 317,393 | | 304,763 | | 4% | | 278,503 | | 14% | |
Accumulated other comprehensive income | | 8,304 | | 7,099 | | 17% | | 4,187 | | 98% | |
Total Shareholders’ Equity | | 560,614 | | 546,248 | | 3% | | 515,583 | | 9% | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | | $ 4,886,785 | | $ 4,720,401 | | 4% | | $ 4,591,097 | | 6% | |
(continued)
8
Wilshire Bancorp Inc. – 2Q 2016 Results
July 18, 2016
Page 9
CONSOLIDATED STATEMENT OF OPERATIONS | | | | | | | | | |
(Dollars In Thousands, Except Per Share Data) (Unaudited) | | | | | | | | | |
| | Quarter Ended | | Three Mths | | Quarter Ended | | Twelve Mths | |
| | June 30, 2016 | | March 31, 2016 | | % Change | | June 30, 2015 | | % Change | |
| | | | | | | | | | | |
INTEREST INCOME | | | | | | | | | | | |
Interest and fees on loans | | $ | 44,273 | | $ | 43,665 | | 1% | | $ | 41,599 | | 6% | |
Interest on investment securities | | 2,328 | | 2,460 | | -5% | | 1,929 | | 21% | |
Interest on federal funds sold and others | | 149 | | 124 | | 20% | | 264 | | -44% | |
Total Interest Income | | 46,750 | | 46,249 | | 1% | | 43,792 | | 7% | |
| | | | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | | |
Deposits | | 6,160 | | 5,932 | | 4% | | 5,661 | | 9% | |
FHLB advances and other borrowings | | 1,423 | | 1,408 | | 1% | | 658 | | 116% | |
Total Interest Expense | | 7,583 | | 7,340 | | 3% | | 6,319 | | 20% | |
| | | | | | | | | | | |
Net interest income before provision for losses on loans and loan commitments | | 39,167 | | 38,909 | | 1% | | 37,473 | | 5% | |
Provision for losses on loans and loan commitments | | – | | 300 | | -100% | | – | | 0% | |
| | | | | | | | | | | |
Net interest income after provision for losses on loans and loan commitments | | 39,167 | | 38,609 | | 1% | | 37,473 | | 5% | |
| | | | | | | | | | | |
NONINTEREST INCOME | | | | | | | | | | | |
Service charges on deposits | | 2,748 | | 2,851 | | -4% | | 3,159 | | -13% | |
Gain on sale of SBA loans | | 1,956 | | 1,297 | | 51% | | 2,631 | | -26% | |
Gain on sale of residential loans | | 1,450 | | 830 | | 75% | | 928 | | 56% | |
Gain on sale of other loans | | – | | 545 | | -100% | | 625 | | -100% | |
Other | | 3,539 | | 2,935 | | 21% | | 3,971 | | -11% | |
Total Noninterest Income | | 9,693 | | 8,458 | | 15% | | 11,314 | | -14% | |
| | | | | | | | | | | |
NONINTEREST EXPENSES | | | | | | | | | | | |
Salaries and employee benefits | | 13,148 | | 14,783 | | -11% | | 14,164 | | -7% | |
Occupancy and equipment | | 3,236 | | 3,276 | | -1% | | 3,196 | | 1% | |
Data processing | | 1,273 | | 1,204 | | 6% | | 1,089 | | 17% | |
Merger-related costs | | 527 | | 458 | | 15% | | – | | 0% | |
Other | | 3,395 | | 6,932 | | -51% | | 6,218 | | -45% | |
Total Noninterest Expenses | | 21,579 | | 26,653 | | -19% | | 24,667 | | -13% | |
| | | | | | | | | | | |
Income before income taxes | | 27,281 | | 20,414 | | 34% | | 24,120 | | 13% | |
Income taxes provision | | 9,917 | | 7,224 | | 37% | | 8,567 | | 16% | |
NET INCOME | | $ | 17,364 | | $ | 13,190 | | 32% | | $ | 15,553 | | 12% | |
| | | | | | | | | | | |
PER COMMON SHARE INFORMATION: | | | | | | | | | | | |
Basic income per common share | | $ | 0.22 | | $ | 0.17 | | 31% | | $ | 0.20 | | 11% | |
Diluted income per common share | | $ | 0.22 | | $ | 0.17 | | 31% | | $ | 0.20 | | 11% | |
| | | | | | | | | | | |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | | | | | |
Basic | | 78,872,353 | | 78,674,604 | | | | 78,459,708 | | | |
Diluted | | 79,137,512 | | 78,974,448 | | | | 78,818,847 | | | |
(continued)
9
Wilshire Bancorp Inc. – 2Q 2016 Results
July 18, 2016
Page 10
CONSOLIDATED STATEMENT OF OPERATIONS | | | | | | | |
(Dollars In Thousands, Except Per Share Data) (Unaudited) | | | | | | | |
| | Six Months Ended | | Twelve Mths | |
| | June 30, 2016 | | June 30, 2015 | | % Change | |
| | | | | | | |
INTEREST INCOME | | | | | | | |
Interest and fees on loans | | $ | 87,938 | | $ | 81,687 | | 8% | |
Interest on investment securities | | 4,788 | | 3,897 | | 23% | |
Interest on federal funds sold and others | | 273 | | 456 | | -40% | |
Total Interest Income | | 92,999 | | 86,040 | | 8% | |
| | | | | | | |
INTEREST EXPENSE | | | | | | | |
Deposits | | 12,092 | | 10,758 | | 12% | |
FHLB advances and other borrowings | | 2,831 | | 1,318 | | 115% | |
Total Interest Expense | | 14,923 | | 12,076 | | 24% | |
| | | | | | | |
Net interest income before provision for losses on loans and loan commitments | | 78,076 | | 73,964 | | 6% | |
Provision for losses on loans and loan commitments | | 300 | | – | | 0% | |
| | | | | | | |
Net interest income after provision for losses on loans and loan commitments | | 77,776 | | 73,964 | | 5% | |
| | | | | | | |
NONINTEREST INCOME | | | | | | | |
Service charges on deposits | | 5,599 | | 6,266 | | -11% | |
Gain on sale of SBA loans | | 3,253 | | 4,876 | | -33% | |
Gain on sale of residential loans | | 2,280 | | 1,189 | | 92% | |
Gain on sale of other loans | | 545 | | 4,925 | | -89% | |
Other | | 6,474 | | 9,325 | | -31% | |
Total Noninterest Income | | 18,151 | | 26,581 | | -32% | |
| | | | | | | |
NONINTEREST EXPENSES | | | | | | | |
Salaries and employee benefits | | 27,931 | | 26,829 | | 4% | |
Occupancy and equipment | | 6,512 | | 6,569 | | -1% | |
Data processing | | 2,477 | | 2,131 | | 16% | |
Merger-related costs | | 985 | | – | | 0% | |
Other | | 10,327 | | 12,047 | | -14% | |
Total Noninterest Expenses | | 48,232 | | 47,576 | | 1% | |
| | | | | | | |
Income before income taxes | | 47,695 | | 52,969 | | -10% | |
Income taxes provision | | 17,141 | | 18,797 | | -9% | |
NET INCOME | | $ | 30,554 | | $ | 34,172 | | -11% | |
| | | | | | | |
PER COMMON SHARE INFORMATION: | | | | | | | |
Basic income per common share | | $ | 0.39 | | $ | 0.44 | | -11% | |
Diluted income per common share | | $ | 0.39 | | $ | 0.43 | | -11% | |
| | | | | | | |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | |
Basic | | 78,773,479 | | 78,393,475 | | | |
Diluted | | 79,048,014 | | 78,736,870 | | | |
(continued)
10
Wilshire Bancorp Inc. – 2Q 2016 Results
July 18, 2016
Page 11
SUMMARY OF FINANCIAL DATA
(Dollars In Thousands, Except Per Share Data) (Unaudited)
| | Quarter Ended | | |
AVERAGE BALANCES | | June 30, 2016 | | | | March 31, 2016 | | | | June 30, 2015 | | |
Average Assets | | $ 4,742,224 | | | | $ 4,698,333 | | | | $ 4,472,065 | | |
Average Equity | | 555,351 | | | | 544,527 | | | | 513,338 | | |
Average Net Loans | | 3,837,219 | | | | 3,789,591 | | | | 3,481,181 | | |
Average Deposits | | 3,866,991 | | | | 3,833,838 | | | | 3,736,003 | | |
Average Time Deposits of $100,000 or more | | 1,358,446 | | | | 1,342,858 | | | | 1,417,860 | | |
Average FHLB & Other Borrowings | | 200,000 | | | | 201,209 | | | | 112,088 | | |
Average Interest Earning Assets | | 4,457,822 | | | | 4,417,456 | | | | 4,197,297 | | |
| | | | | | | | | | | | |
| | Six Months Ended | | |
AVERAGE BALANCES | | June 30, 2016 | | | | | | | | June 30, 2015 | | |
Average Assets | | $ 4,720,279 | | | | | | | | $ 4,364,443 | | |
Average Equity | | 549,939 | | | | | | | | 506,754 | | |
Average Net Loans | | 3,813,405 | | | | | | | | 3,417,163 | | |
Average Deposits | | 3,850,415 | | | | | | | | 3,613,821 | | |
Average Time Deposits of $100,000 or more | | 1,350,652 | | | | | | | | 1,358,242 | | |
Average FHLB & Other Borrowings | | 200,604 | | | | | | | | 131,265 | | |
Average Interest Earning Assets | | 4,437,639 | | | | | | | | 4,087,478 | | |
| | | | | | | | | | | | |
| | Quarter Ended | | |
PROFITABILITY | | June 30, 2016 | | | | March 31, 2016 | | | | June 30, 2015 | | |
Annualized Return on Average Assets | | 1.46% | | | | 1.12% | | | | 1.39% | | |
Annualized Return on Average Equity | | 12.51% | | | | 9.69% | | | | 12.12% | | |
Efficiency Ratio | | 44.16% | | | | 56.27% | | | | 50.56% | | |
Annualized Operating Expense/Average Assets | | 1.82% | | | | 2.27% | | | | 2.21% | | |
Annualized Net Interest Margin | | 3.53% | | | | 3.54% | | | | 3.59% | | |
| | | | | | | | | | | | |
| | Six Months Ended | | |
PROFITABILITY | | June 30, 2016 | | | | | | | | June 30, 2015 | | |
Annualized Return on Average Assets | | 1.29% | | | | | | | | 1.57% | | |
Annualized Return on Average Equity | | 11.11% | | | | | | | | 13.49% | | |
Efficiency Ratio | | 50.12% | | | | | | | | 47.32% | | |
Annualized Operating Expense/Average Assets | | 2.04% | | | | | | | | 2.18% | | |
Annualized Net Interest Margin | | 3.53% | | | | | | | | 3.64% | | |
| | | | | | | | | | | | |
| | As Of |
DEPOSIT COMPOSITION | | June 30, 2016 | | Cost of Funds | | March 31, 2016 | | Cost of Funds | | June 30, 2015 | | Cost of Funds |
Noninterest Bearing Demand Deposits | | 28.3% | | 0.00% | | 28.7% | | 0.00% | | 26.3% | | 0.00% |
Savings & Interest Checking | | 4.3% | | 1.28% | | 4.5% | | 1.25% | | 4.1% | | 1.30% |
Money Market Deposits | | 25.1% | | 0.73% | | 25.8% | | 0.71% | | 24.7% | | 0.66% |
Time Deposits of $100,000 or More | | 35.1% | | 0.94% | | 34.7% | | 0.91% | | 37.8% | | 0.86% |
Other Time Deposits | | 7.2% | | 0.95% | | 6.3% | | 0.92% | | 7.2% | | 0.90% |
Total Deposits | | 100.0% | | 0.64% | | 100.0% | | 0.62% | | 100.0% | | 0.61% |
| | | |
| | As Of | |
CAPITAL RATIOS | | June 30, 2016 | | | | March 31, 2016 | | | | June 30, 2015 | | |
Tier 1 Leverage Ratio | | 11.85% | | | | 11.67% | | | | 11.64% | | |
Tier 1 Common Equity Risk-Based Capital Ratio | | 11.67% | | | | 11.47% | | | | 11.91% | | |
Tier 1 Risk-Based Capital Ratio | | 13.35% | | | | 13.17% | | | | 13.78% | | |
Total Risk-Based Capital Ratio | | 14.60% | | | | 14.42% | | | | 15.03% | | |
Total Shareholders’ Equity | | $ 560,614 | | | | $ 546,248 | | | | $ 515,583 | | |
Book Value Per Common Share | | $ 7.11 | | | | $ 6.93 | | | | $ 6.57 | | |
Tangible Common Equity Per Common Share * | | $ 6.22 | | | | $ 6.03 | | | | $ 5.66 | | |
Tangible Common Equity to Tangible Assets * | | 10.18% | | | | 10.23% | | | | 9.83% | | |
* Excludes goodwill and other intangible assets
(continued)
11
Wilshire Bancorp Inc. – 2Q 2016 Results
July 18, 2016
Page 12
ALLOWANCE FOR LOAN LOSSES
(Dollars In Thousands) (Unaudited)
| | Quarter Ended |
| | June 30, 2016 | | March 31, 2016 | | December 31, 2015 | | September 30, 2015 | | June 30, 2015 |
Balance at beginning of period | | $ 52,668 | | $ 52,405 | | $ 50,116 | | $ 48,821 | | $ 48,170 |
Provision for losses on loans | | – | | 500 | | – | | 500 | | – |
Recoveries on loans previously charged-off | | 993 | | 361 | | 3,694 | | 2,670 | | 1,210 |
Gross loan charge-offs | | (479) | | (598) | | (1,405) | | (1,875) | | (559) |
Balance at end of period | | $ 53,182 | | $ 52,668 | | $ 52,405 | | $ 50,116 | | $ 48,821 |
| | | | | | | | | | |
Net Loan Charge-offs / Average Net Loans | | -0.01% | | 0.01% | | -0.06% | | -0.02% | | -0.02% |
Charge-offs / Average Total Loans | | 0.01% | | 0.02% | | 0.04% | | 0.05% | | 0.02% |
Allowance for Loan Losses / Gross Loans* | | 1.38% | | 1.38% | | 1.37% | | 1.38% | | 1.38% |
Allowance for Loan Losses / Non-accrual Loans | | 267.87% | | 208.99% | | 241.56% | | 184.38% | | 158.24% |
Allowance for Loan Losses / Non-performing Loans | | 267.87% | | 208.99% | | 241.56% | | 184.38% | | 158.24% |
Allowance for Loan Losses / Non-performing Assets | | 173.24% | | 149.08% | | 169.74% | | 130.23% | | 130.50% |
Allowance for Loan Losses / Classified Loans | | 63.95% | | 61.79% | | 65.22% | | 59.53% | | 47.88% |
* Excludes held-for-sale loans
NON-PERFORMING ASSETS
(Dollars In Thousands, Net of SBA Guaranty)
(Unaudited)
| | Quarter Ended |
| | June 30, 2016 | | March 31, 2016 | | December 31, 2015 | | September 30, 2015 | | June 30, 2015 |
| | | | | | | | | | |
Non-accrual loans | | $ 19,854 | | $ 25,201 | | $ 21,694 | | $ 27,181 | | $ 30,852 |
Loans 90 days or more past due and still accruing | | – | | – | | – | | – | | – |
Total Non-performing Loans | | 19,854 | | 25,201 | | 21,694 | | 27,181 | | 30,852 |
| | | | | | | | | | |
Total OREO | | 10,844 | | 10,128 | | 9,179 | | 11,302 | | 6,559 |
Total Non-performing Assets | | $ 30,698 | | $ 35,329 | | $ 30,873 | | $ 38,483 | | $ 37,411 |
| | | | | | | | | | |
Total Non-performing Loans/Gross Loans | | 0.51% | | 0.65% | | 0.56% | | 0.74% | | 0.87% |
Total Non-performing Assets/Total Assets | | 0.63% | | 0.75% | | 0.65% | | 0.81% | | 0.81% |
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS
(Dollars In Thousands) (Unaudited)
| | Quarter Ended | | | | |
| | June 30, 2016 | | March 31, 2016 | | June 30, 2015 | | | | |
| | | | | | | | | | |
Balance at beginning of period | | $ 1,061 | | $ 1,261 | | $ 1,023 | | | | |
Credit for losses on loan commitments | | – | | (200) | | – | | | | |
Balance at end of period | | $ 1,061 | | $ 1,061 | | $ 1,023 | | | | |
| | | | | | | | | | |
| | Six Months Ended | | | | | | |
| | June 30, 2016 | | June 30, 2015 | | | | | | |
| | | | | | | | | | |
Balance at beginning of period | | $ 1,261 | | $ 1,023 | | | | | | |
Credit for losses on loan commitments | | (200) | | – | | | | | | |
Balance at end of period | | $ 1,061 | | $ 1,023 | | | | | | |
(continued)
12
Wilshire Bancorp Inc. – 2Q 2016 Results
July 18, 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 |
| | June 30, 2016 | | March 31, 2016 | | June 30, 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 | | $ 3,066,405 | | $ 35,262 | | 4.60% | | $ 3,050,251 | | $ 35,025 | | 4.59% | | $ 2,767,138 | | $ 33,410 | | 4.83% |
Commercial Loans | | 771,109 | | 7,814 | | 4.05% | | 737,336 | | 7,486 | | 4.06% | | 709,662 | | 6,947 | | 3.92% |
Consumer Loans | | 9,929 | | 59 | | 2.38% | | 12,522 | | 86 | | 2.75% | | 14,413 | | 124 | | 3.44% |
Total Gross Loans | | 3,847,443 | | 43,135 | | 4.49% | | 3,800,109 | | 42,597 | | 4.48% | | 3,491,213 | | 40,481 | | 4.64% |
Deferred Fees and Costs \ Loan Fees | | (10,224) | | 1,138 | | | | (10,518) | | 1,068 | | | | (10,032) | | 1,118 | | |
Total Loans * | | 3,837,219 | | 44,273 | | 4.62% | | 3,789,591 | | 43,665 | | 4.61% | | 3,481,181 | | 41,599 | | 4.78% |
| | | | | | | | | | | | | | | | | | |
INVESTMENT SECURITIES AND | | | | | | | | | | | | | | | | | | |
OTHER INTEREST-EARNING ASSETS: | | | | | | | | | | | | | | | | | | |
Investment Securities** | | 502,367 | | 2,328 | | 1.98% | | 529,552 | | 2,460 | | 1.97% | | 339,876 | | 1,929 | | 2.47% |
Deposits Held In Other Institutions | | – | | – | | 0.00% | | – | | – | | 0.00% | | 7,986 | | 32 | | 1.60% |
Federal Funds Sold & Others | | 118,236 | | 149 | | 0.50% | | 98,313 | | 124 | | 0.50% | | 368,254 | | 232 | | 0.25% |
Total Investment Securities and | | | | | | | | | | | | | | | | | | |
Other Earning Assets | | 620,603 | | 2,477 | | 1.69% | | 627,865 | | 2,584 | | 1.74% | | 716,116 | | 2,193 | | 1.32% |
| | | | | | | | | | | | | | | | | | |
TOTAL INTEREST-EARNING ASSETS | | $ 4,457,822 | | $ 46,750 | | 4.21% | | $ 4,417,456 | | $ 46,249 | | 4.20% | | $ 4,197,297 | | $ 43,792 | | 4.19% |
| | | | | | | | | | | | | | | | | | |
Total Non-Interest Earning Assets | | 284,402 | | | | | | 280,877 | | | | | | 274,768 | | | | |
TOTAL ASSETS | | $ 4,742,224 | | | | | | $ 4,698,333 | | | | | | $ 4,472,065 | | | | |
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS: | | | | | | | | | | | | | | | | | | |
Money Market | | $ 994,594 | | $ 1,803 | | 0.73% | | $ 1,008,081 | | $ 1,787 | | 0.71% | | $ 891,494 | | $ 1,464 | | 0.66% |
NOW | | 33,996 | | 21 | | 0.25% | | 37,936 | | 25 | | 0.26% | | 28,704 | | 20 | | 0.28% |
Savings | | 135,302 | | 520 | | 1.54% | | 134,064 | | 511 | | 1.53% | | 129,805 | | 494 | | 1.52% |
Time Deposits of $100,000 or More | | 1,358,446 | | 3,207 | | 0.94% | | 1,342,858 | | 3,044 | | 0.91% | | 1,417,860 | | 3,061 | | 0.86% |
Other Time Deposits | | 255,867 | | 609 | | 0.95% | | 246,197 | | 565 | | 0.92% | | 276,973 | | 622 | | 0.90% |
Total Interest Bearing Deposits | | 2,778,205 | | 6,160 | | 0.89% | | 2,769,136 | | 5,932 | | 0.86% | | 2,744,836 | | 5,661 | | 0.83% |
| | | | | | | | | | | | | | | | | | |
BORROWINGS: | | | | | | | | | | | | | | | | | | |
FHLB Advances and Other Borrowings | | 200,000 | | 907 | | 1.81% | | 201,209 | | 905 | | 1.80% | | 112,088 | | 220 | | 0.79% |
Junior Subordinated Debentures | | 72,099 | | 516 | | 2.86% | | 72,037 | | 503 | | 2.79% | | 71,858 | | 438 | | 2.44% |
Total Borrowings | | 272,099 | | 1,423 | | 2.09% | | 273,246 | | 1,408 | | 2.06% | | 183,946 | | 658 | | 1.43% |
| | | | | | | | | | | | | | | | | | |
TOTAL INTEREST BEARING LIABILITIES | | $ 3,050,304 | | $ 7,583 | | 0.99% | | $ 3,042,382 | | $ 7,340 | | 0.97% | | $2,928,782 | | $ 6,319 | | 0.86% |
| | | | | | | | | | | | | | | | | | |
Non-Interest Bearing Deposits | | 1,088,786 | | | | | | 1,064,702 | | | | | | 991,167 | | | | |
Other Liabilities | | 47,783 | | | | | | 46,722 | | | | | | 38,778 | | | | |
Shareholders’ Equity | | 555,351 | | | | | | 544,527 | | | | | | 513,338 | | | | |
TOTAL LIABILITIES AND EQUITY | | $ 4,742,224 | | | | | | $ 4,698,333 | | | | | | $ 4,472,065 | | | | |
| | | | | | | | | | | | | | | | | | |
NET INTEREST INCOME | | | | $ 39,167 | | | | | | $ 38,909 | | | | | | $ 37,473 | | |
| | | | | | | | | | | | | | | | | | |
NET INTEREST SPREAD | | | | | | 3.22% | | | | | | 3.24% | | | | | | 3.33% |
| | | | | | | | | | | | | | | | | | |
NET INTEREST MARGIN | | | | | | 3.53% | | | | | | 3.54% | | | | | | 3.59% |
* Allowance for loan losses excluded from average total loans and earning assets
** Tax equivalent ratios for investment securities
(continued)
13
Wilshire Bancorp Inc. – 2Q 2016 Results
July 18, 2016
Page 14
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
| | For the Six Months Ended |
| | | | | | | | | | | | |
| | June 30, 2016 | | June 30, 2015 |
| | | | | | | | | | | | |
| | Average | | Interest | | Average | | Average | | Interest | | Average |
| | Balance | | Income/ | | Yield/ | | Balance | | Income/ | | Yield/ |
INTEREST EARNING ASSETS | | | | Expense | | Rate | | | | Expense | | Rate |
| | | | | | | | | | | | |
LOANS: | | | | | | | | | | | | |
Real Estate Loans | | $ | 3,058,328 | | $ | 70,287 | | 4.60% | | $ | 2,749,883 | | $ | 65,976 | | 4.80% |
Commercial Loans | | 754,223 | | 15,300 | | 4.06% | | 663,512 | | 13,229 | | 3.99% |
Consumer Loans | | 11,225 | | 146 | | 2.60% | | 13,780 | | 239 | | 3.47% |
Total Gross Loans | | 3,823,776 | | 85,733 | | 4.48% | | 3,427,175 | | 79,444 | | 4.64% |
Deferred Fees and Costs \ Loan Fees | | (10,371) | | 2,205 | | | | (10,012) | | 2,243 | | |
Total Loans * | | 3,813,405 | | 87,938 | | 4.61% | | 3,417,163 | | 81,687 | | 4.78% |
| | | | | | | | | | | | |
INVESTMENT SECURITIES AND | | | | | | | | | | | | |
OTHER INTEREST-EARNING ASSETS: | | | | | | | | | | | | |
Investment Securities** | | 515,959 | | 4,788 | | 1.98% | | 349,536 | | 3,897 | | 2.42% |
Deposits Held In Other Institutions | | – | | – | | 0.00% | | 7,993 | | 64 | | 1.60% |
Federal Funds Sold & Others | | 108,275 | | 273 | | 0.50% | | 312,786 | | 392 | | 0.25% |
Total Investment Securities and | | | | | | | | | | | | |
Other Earning Assets | | 624,234 | | 5,061 | | 1.72% | | 670,315 | | 4,353 | | 1.40% |
| | | | | | | | | | | | |
TOTAL INTEREST-EARNING ASSETS | | $ | 4,437,639 | | $ | 92,999 | | 4.21% | | $ | 4,087,478 | | $ | 86,040 | | 4.23% |
| | | | | | | | | | | | |
Total Non-Interest Earning Assets | | 282,640 | | | | | | 276,965 | | | | |
TOTAL ASSETS | | $ | 4,720,279 | | | | | | $ | 4,364,443 | | | | |
| | | | | | | | | | | | |
INTEREST BEARING LIABILITIES | | | | | | | | | | | | |
| | | | | | | | | | | | |
INTEREST-BEARING DEPOSITS: | | | | | | | | | | | | |
Money Market | | $ | 1,001,338 | | $ | 3,590 | | 0.72% | | $ | 868,165 | | $ | 2,871 | | 0.66% |
NOW | | 35,966 | | 46 | | 0.26% | | 28,966 | | 37 | | 0.26% |
Savings | | 134,683 | | 1,031 | | 1.53% | | 129,523 | | 996 | | 1.54% |
Time Deposits of $100,000 or More | | 1,350,652 | | 6,251 | | 0.93% | | 1,358,242 | | 5,664 | | 0.83% |
Other Time Deposits | | 251,032 | | 1,174 | | 0.94% | | 271,331 | | 1,190 | | 0.88% |
Total Interest Bearing Deposits | | 2,773,671 | | 12,092 | | 0.87% | | 2,656,227 | | 10,758 | | 0.81% |
| | | | | | | | | | | | |
BORROWINGS: | | | | | | | | | | | | |
FHLB Advances and Other Borrowings | | 200,604 | | 1,811 | | 1.81% | | 131,265 | | 452 | | 0.69% |
Junior Subordinated Debentures | | 72,068 | | 1,020 | | 2.83% | | 71,828 | | 866 | | 2.41% |
Total Borrowings | | 272,672 | | 2,831 | | 2.08% | | 203,093 | | 1,318 | | 1.30% |
| | | | | | | | | | | | |
TOTAL INTEREST BEARING LIABILITIES | | $ | 3,046,343 | | $ | 14,923 | | 0.98% | | $ | 2,859,320 | | $ | 12,076 | | 0.85% |
| | | | | | | | | | | | |
Non-Interest Bearing Deposits | | 1,076,744 | | | | | | 957,594 | | | | |
Other Liabilities | | 47,253 | | | | | | 40,775 | | | | |
Shareholders’ Equity | | 549,939 | | | | | | 506,754 | | | | |
TOTAL LIABILITIES AND EQUITY | | $ | 4,720,279 | | | | | | $ | 4,364,443 | | | | |
| | | | | | | | | | | | |
NET INTEREST INCOME | | | | $ | 78,076 | | | | | | $ | 73,964 | | |
| | | | | | | | | | | | |
NET INTEREST SPREAD | | | | | | 3.23% | | | | | | 3.38% |
| | | | | | | | | | | | |
NET INTEREST MARGIN | | | | | | 3.53% | | | | | | 3.64% |
* Allowance for loan losses excluded from average total loans and earning assets
** Tax equivalent ratios for investment securities
(continued)
14
Wilshire Bancorp Inc. – 2Q 2016 Results
July 18, 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 | |
| June 30, 2016 | | March 31, 2016 | | June 30, 2015 | |
| | | | | | |
Total shareholders’ equity | $ 560,614 | | $ 546,248 | | $ 515,583 | |
Goodwill and other intangible assets, net | (70,273) | | (70,458) | | (71,141) | |
Tangible common equity | $ 490,341 | | $ 475,790 | | $ 444,442 | |
| | | | | | |
Total assets | $ 4,886,785 | | $ 4,720,401 | | $ 4,591,097 | |
Goodwill and other intangible assets, net | (70,273) | | (70,458) | | (71,141) | |
Tangible assets | $ 4,816,512 | | $ 4,649,943 | | $ 4,519,956 | |
| | | | | | |
Common shares outstanding | 78,891,607 | | 78,845,873 | | 78,495,182 | |
EFFICIENCY RATIO BEFORE GAIN ON SALE OF OREO * | | | | | | |
(Dollars In Thousands, Except Share Data) (Unaudited) | | | | | | |
| Quarter
Ended | | | | | |
| June 30,
2016 | | | | | |
| | | | | | |
Net interest income | $ 39,167 | | | | | |
Non-interest income | 9,693 | | | | | |
Total revenue | $ 48,860 | | | | | |
| | | | | | |
Non-interest expenses | $ 21,579 | | | | | |
Add back – gain on sale of OREO | 3,742 | | | | | |
Non-interest expense before gain on sale of OREO | $ 25,321 | | | | | |
| | | | | | |
Efficiency ratio before gain on sale of OREO | 51.8% | | | | | |
(Total revenue / Non-interest expense before gain on sale of OREO) |
* Tangible Common Equity, Tangible Assets, and Efficiency Ratio Before Gain on Sale of OREO 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
