CONTACT: Joanne Kim, President & CEO, 213-639-1843 Alex Ko, SVP & CFO, 213-427-6560 www.wilshirebank.com | | NEWS RELEASE |
Wilshire Bancorp Posts Net Income of $7.4 Million, or $0.25 per Diluted Share, in the Second Quarter 2008
Loans Increase 18% over Second Quarter 2007 and Strong Credit Monitoring Continues
LOS ANGELES, CA – July 22, 2008 - Wilshire Bancorp, Inc. (NASDAQ: WIBC), the holding company for Wilshire State Bank, reported diluted earnings per share of $0.25 for the second quarter 2008, compared with $0.24 in the first quarter 2008 and $0.25 in the second quarter 2007. Net income was $7.43 million, compared with $7.05 million in prior quarter and $7.35 million in the second quarter 2007.
“Wilshire continued to strengthen its franchise during the second quarter against the continued backdrop of challenging credit market conditions” stated Ms. Joanne Kim, President and CEO “Our net income growth and earnings per share of $0.25 were driven by strong credit quality management, evidenced by $1.7 million recovery and solid loan growth. While we are still affected by weaker economic conditions, we are confident that Wilshire is well positioned to continue to expand through the current challenging credit cycle.”
SECOND QUARTER 2008 FINANCIAL HIGHLIGHTS:
Compared to second quarter 2007
| | · | Net income increased to $7.43 million, compared with $7.35 million in the second quarter a year ago. |
| | · | Average loan portfolio increased 18% to $1.94 billion, compared with $1.65 billion a year ago. |
| | · | Average interest-earning assets increased 16% to $2.15 billion, compared with $1.85 billion a year ago. |
| | · | Deposit fee income increased 21% to $3.0 million, compared with $2.5 million in 2Q07. |
| | · | Earning per share remained the same at $0.25, compared with 2Q07. |
Compared to first quarter 2008
| | · | Net income increased to $7.43 million, compared with $7.05 million in the previous quarter. |
| | · | Average loan portfolio increased 5% to $1.94 billion, compared with $1.86 billion in the first quarter. |
| | · | Average deposits increased 1% to $1.73 billion, compared with $1.70 billion at March 31, 2008. |
| | · | EPS increased to $0.25 from $0.24 in 1Q08. |
| | · | ROA and ROE increased to 1.29% and 16.36%, compared with 1.28% and 16.08%, respectively in 1Q08. |
| | · | Efficiency ratio improved to 48.4% from 49.1% in 1Q08. |
CREDIT QUALITY
“Managing the challenges of the current credit cycle continues to be our top priority. We have maintained our emphasis on sticking to our higher credit standards in the highly competitive markets that we serve,” Ms. Kim said. “We have tighter credit monitoring controls in place than we did a year ago, and are keeping a close eye on all problem credits. Our focus on increased asset quality and effective controls over the past year has translated into a healthy level of growth in our growth in our loan portfolio.”
Non-performing loans totaled $16.5 million, or 0.83% of gross loans, at June 30, 2008 compared to $12.0 million, or 0.64% of gross loans, at March 31, 2008 and $8.4 million, or 0.50% of gross loans, at the end of June 2007.
“During the second quarter of 2008 we recovered $1.7 million from previously charged off loans, which contributed to net charge-offs of $234,000, compared to $1.0 million for the prior quarter and $1.8 million for the second quarter a year ago,” said Ms. Kim. “While we anticipated having recoveries based on our persistent efforts to recover previously charged-off loans during this quarter, we do not expect to have recoveries at these levels going forward.” For the first six months of 2008, net charge-offs totaled $1.3 million compared to $4.5 million in the first six months of 2007.
Provision for losses for loans and loan commitments was $1.4 million during the second quarter 2008, compared to $4.5 million during the same quarter a year ago. For the first six months of 2008 the provision for losses on loans and loan commitments was $2.8 million, compared to $6.1 million in the same period a year ago. The current quarter provision primarily reflects loan growth and the continued weakness in the broader economic environment. The allowance for loan losses was $23.5 million, representing 1.18% of gross loans and 143% of nonperforming loans, at June 30, 2008, compared with allowance for loan loses of $19.4 million, representing 1.16% of gross loans and 230% of nonperforming loans, at June 30, 2007 and allowance for loan loses of $22.1 million, representing 1.17% of gross loans and 184% of nonperforming loans at March 31, 2008. We believe the allowance was adequate for losses inherent in the portfolio at June 30, 2008.
WIBC – 2Q08 results
July 22, 2008
Page 2
BALANCE SHEET
Total assets increased 16% to $2.36 billion at June 30, 2008, compared with $2.04 billion a year ago. We were able to continue to originate more loans to our customers where we believed it was prudent and properly priced. The challenging credit market condition has created incremental earnings opportunities for Wilshire. Our average loans during the current quarter increased by 18% compared to the same quarter a year ago.
At June 30, 2008, commercial real estate loans comprised 73.7% of the loan portfolio. Wilshire continues to reduce its exposure to construction loans, which accounted for only 2.5% of its loan portfolio at June 30, 2008, compared with 3.0% a year ago. Based on thorough analysis on construction loans, we don’t believe significant credit risk exists in our construction loan portfolio. Commercial and industrial loans accounted for 18.9% of total loans at the end of June 2008, compared with 18.4% a year earlier. Consumer loans decreased to 1.3% of total gross loans at current quarter-end, compared to 2.6% a year earlier.
Wilshire has not engaged in any subprime lending and the loan portfolio does not contain any such loans. For the purpose of making this determination, we consider “subprime loans” to be loans made to borrower (or borrowers) with a diminished or impaired credit rating or with a limited credit history.
Total deposits were $1.74 billion at June 30, 2008 compared to $1.77 billion a year earlier and $1.73 billion at preceding quarter end. Non-time deposits were at $792 million as of June 30, 2008, representing a 4% decrease compared to a year ago, but 4% increase compared to the preceding quarter end.
At June 30, 2008, shareholders’ equity was $182 million, up 12% from $163 million a year ago and book value was $6.18 per share at June 30, 2008, versus to $5.54 a year earlier.
NET INTEREST MARGIN
“As expected, the 75 and 25 basis point reductions in the federal funds rate on March 18, 2008 and April 30, 2008, compressed our margin during the second quarter 2008, since our deposit costs re-priced at a slower pace than our interest earning assets,” said Mr. Alex Ko, CFO. The net interest margin was 3.78% in the second quarter of 2008, compared to 3.83% in the previous quarter and 4.52% in the second quarter a year ago.
In the second quarter of 2008, the weighted average yield of the loan portfolio decreased 61 basis points to 7.11% from 7.72% in the preceding quarter. This decline was largely due to the impact of the 75 and 25 basis point cuts of the federal funds rate in March and April 2008.
Based on disciplined deposit pricing during the second quarter 2008, the net interest spread has increase to 3.17%, compared to 3.10% at March 31, 2008. The weighted average cost of interest-bearing liabilities for the second quarter decreased 62 basis points to 3.65% from 4.27% for the preceding quarter. The decrease was due to declining market rates and the effect the decline had on our deposit pricing, as well as the cost of wholesale funding through Federal Home Loan Bank (FHLB) advances. “We continue to use FHLB advances as a cost effective alternative for our funding needs, while we continue our effort in bringing in more core deposit via various marketing campaigns to support our steady loan growth” said Mr. Ko.
INCOME STATEMENT AND PERFORMANCE METRICS
In the second quarter of 2008, interest income was down 7% while interest expense was down 12% compared to the same quarter of 2007. Net interest income was down 3% to $20.3 million, from $20.9 million in the second quarter of 2007, while it was up 3% as compared with first quarter of 2008. Service fees on deposits grew by 21% to $3.0 million, compared with $2.5 million in the second quarter a year ago. Total noninterest income was down 11% to $5.6 million, compared to $6.3 million in the second quarter a year ago, due to the decrease in SBA loan sales during the second quarter of 2008.
SBA loan production levels decreased 49% to $21.7 million in the second quarter of 2008 compared to $42.2 million in the same period last year, reflecting the overall weaker economic environment. The average sales premium of SBA 7(a) guaranteed loans was lower in the second quarter of 2008 compared to the second quarter a year ago. The lowered sales volume and premium of SBA 7(a) guaranteed loans resulted in a 61% decline in gain on sale of loans to $918,000, compared with a $2.3 million gain in second quarter of 2007.
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WIBC – 2Q08 results
The decrease in gain on sales of loans was largely offset by 21% and 12% increases in service charges on deposits and other income, respectively. The significant increase in service income charges on deposits from the same quarter a year ago was mainly attributable to close account fee monitoring.
Total noninterest expenses were $12.6 million in the second quarter of 2008, compared to $10.6 million in the second quarter a year ago. The $2.0 million increase was primarily due to $421,000 increase in expense recognition related to stock options granted in June 2008 to employees and Board of Directors, and increase in salary and employee benefits associated with the integration of the New Jersey branch and the new Rancho Cucamonga branch opened in the second half of 2007.
In the six-month period ended June 30, 2008, interest income decreased $2.5 million, or 3%, from the same period a year ago, which was more than offset by $2.7 million, or 7%, decrease in interest expense, resulting in a slight increase in net interest income of $188,000 from $39.9 million net interest income in first half of 2007 to $40.1 million net interest income in the first half of 2008.
Noninterest income was $10.8 million for the first half of 2008, a 7% decrease from $11.5 million in the first six months of 2007, primarily due to $2.4 million, or 57%, decrease in gain on SBA loan sales between the two periods. Such significant decrease was largely offset by $1.0 million, or 21%, increase in service charges on deposits and $0.6 million, or 23%, increase in other income.
Noninterest expenses in the first half of 2008 were up 17% to $24.8 million, compared to $21.1 million in the first half of 2007. “We are continuing to explore branch expansion opportunities within our primary markets and look forward to two new branch openings that are already scheduled for later this year,” said Ms. Kim. “Our new branch in Los Angeles is planned to open in the third quarter and our second New Jersey branch is planned to open later this year, which will bring our total branch network to 22 locations.
“Our new branches are proving to be very successful in helping us reach new customers and grow deposits,” added Ms. Kim. “Although they initially put pressure on our expense ratios, over time they should add to our profitability by providing low-cost deposits and additional fee income opportunities.” The efficiency ratio was 48.4% in the second quarter of 2008, compared to 49.1% in the previous linked quarter and 39.0% in the second quarter a year ago. Wilshire’s return on equity (ROE) in the second quarter of 2008 was 16.36% and return on assets (ROA) was 1.29%, compared to 18.15% and 1.47%, respectively, in the second quarter a year ago.
“Our financial performance is strong and continues to remain stable under this weakened economic environment, reflecting the fact that unlike some banks, we have sufficient capital and liquidity to lend to qualified customers that meet our higher standards with more disciplined loan pricing” said Mr. Ko.
REGULATORY CAPITAL MEASURE
Our capital ratios remained strong and continue to exceed the “Well Capitalized” guidelines established by regulatory agencies. The leverage ratio was 10.21% at June 30, 2008, compared to 10.24% at March 31, 2008, and 10.28% at June 30, 2007. The total risk-based capital ratio was 13.99% at June 30, 2008, compared to 14.37% at March 31, 2008, and 14.22% at the end of June 2007.
CONFERENCE CALL & COMPANY INFORMATION
Management will host its quarterly conference call on July 22, at 11:00 a.m. PDT (2:00 p.m. EDT). Investment professionals are invited to participate in the call by dialing 1-888-680-0865 using passcode 84932857.
Headquartered in Los Angeles, Wilshire State Bank operates 20 branch offices in California, Texas, New Jersey and New York, and seven loan production offices in Seattle, Dallas, Houston, Atlanta, Denver, Annandale, VA, and Palisades Park, NJ and is an SBA preferred lender nationwide. Wilshire State Bank is a community bank with a focus on commercial real estate lending and general commercial banking, with its primary market encompassing the multi-ethnic populations of the Los Angeles Metropolitan area. Wilshire Bancorp’s strategic goals include increasing shareholder and franchise value by continuing to grow its multi-ethnic banking business and expanding its geographic reach to other similar markets with strong levels of small business activity.
www.wilshirebank.com
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WIBC – 2Q08 results
July 22, 2008
Page 4
FORWARD-LOOKING STATEMENTS
Statements concerning future performance, events, or any other guidance on future periods constitute forward-looking statements that are subject to a number of risks and uncertainties that might cause actual results to differ materially from stated expectations. Specific factors include, but are not limited to, loan production and sales, credit quality, the ability to expand net interest margin, the ability to continue to attract low-cost deposits, success of expansion efforts, competition in the marketplace and general economic conditions. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes included in Wilshire Bancorp’s most recent reports on Form 10-K and Form 10-Q, as filed with the Securities and Exchange Commission, as they may be amended from time to time. Results of operations for the most recent quarter are not necessarily indicative of operating results for any future periods. Any projections in this release are based on limited information currently available to management and are subject to change. Since management will only provide guidance at certain points during the year, Wilshire Bancorp will not necessarily update the information. Such information speaks only as of the date of this release. Additional information on these and other factors that could affect financial results are included in filings by Wilshire Bancorp with the Securities and Exchange Commission.
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WIBC – 2Q08 results
July 22, 2008
Page 5
CONSOLIDATED STATEMENT OF OPERATIONS
(dollars in thousands, except per share data) (unaudited)
| | | Quarter Ended June 30, 2008 | | Three Month % Change | | Quarter Ended March 31, 2008 | | One Year % Change | | Quarter Ended June 30, 2007 | |
| | | | | | | | | | | | |
INTEREST INCOME | | | | | | | | | | | | | | | | |
| Interest and fees on loans | | $ | 33,978 | | | -4 | % | $ | 35,318 | | | -7 | % | $ | 36,584 | |
| Interest on securities | | | 2,638 | | | 2 | % | | 2,584 | | | 13 | % | | 2,342 | |
| Interest on federal funds sold | | | 49 | | | -40 | % | | 80 | | | -92 | % | | 578 | |
Total Interest Income | | | 36,665 | | | -3 | % | | 37,982 | | | -7 | % | | 39,504 | |
| | | | | | | | | | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | | | | | | | |
| Deposits | | | 12,864 | | | -13 | % | | 14,738 | | | -25 | % | | 17,243 | |
| FHLB and other borrowings | | | 3,468 | | | -1 | % | | 3,500 | | | 158 | % | | 1,345 | |
Total Interest Expense | | | 16,332 | | | -10 | % | | 18,238 | | | -12 | % | | 18,588 | |
| | | | | | | | | | | | | | | | | |
| Net interest income | | | 20,333 | | | 3 | % | | 19,744 | | | -3 | % | | 20,916 | |
| Provision for losses on loans and loan commitments | | | 1,400 | | | 0 | % | | 1,400 | | | -69 | % | | 4,500 | |
| Net interest income after provision for loan losses and loan commitments | | | 18,933 | | | 3 | % | | 18,344 | | | 15 | % | | 16,416 | |
| | | | | | | | | | | | | | | | | |
NONINTEREST INCOME | | | | | | | | | | | | | | | | |
| Service charges on deposits | | | 3,043 | | | 11 | % | | 2,748 | | | 21 | % | | 2,505 | |
| Gain on sales of loans | | | 918 | | | 6 | % | | 864 | | | -61 | % | | 2,334 | |
| Other | | | 1,646 | | | 7 | % | | 1,542 | | | 12 | % | | 1,472 | |
Total Noninterest Income | | | 5,607 | | | 9 | % | | 5,154 | | | -11 | % | | 6,311 | |
| | | | | | | | | | | | | | | | | |
NONINTEREST EXPENSES | | | | | | | | | | | | | | | | |
| Salaries and Employee Benefits | | | 7,655 | | | 10 | % | | 6,976 | | | 34 | % | | 5,703 | |
| Occupancy & Equipment | | | 1,492 | | | 5 | % | | 1,425 | | | 15 | % | | 1,300 | |
| Data Processing | | | 771 | | | 1 | % | | 764 | | | 4 | % | | 745 | |
| Other | | | 2,636 | | | -14 | % | | 3,059 | | | -8 | % | | 2,858 | |
Total Noninterest Expenses | | | 12,554 | | | 3 | % | | 12,224 | | | 18 | % | | 10,606 | |
| | | | | | | | | | | | | | | | | |
| Income before income taxes | | | 11,986 | | | 6 | % | | 11,274 | | | -1 | % | | 12,121 | |
| Income tax | | | 4,557 | | | 8 | % | | 4,224 | | | -5 | % | | 4,775 | |
NET INCOME | | $ | 7,429 | | | 5 | % | $ | 7,050 | | | 1 | % | $ | 7,346 | |
| | | | | | | | | | | | | | | | | |
Per Share Data | | | | | | | | | | | | | | | | |
| Basic earnings per share | | $ | 0.25 | | | 5 | % | $ | 0.24 | | | 0 | % | $ | 0.25 | |
| Diluted earnings per share | | $ | 0.25 | | | 5 | % | $ | 0.24 | | | 0 | % | $ | 0.25 | |
| Basic | | | 29,391,177 | | | | | | 29,276,871 | | | | | | 29,370,096 | |
| Diluted | | | 29,414,674 | | | | | | 29,341,080 | | | | | | 29,662,046 | |
WIBC – 2Q08 results
July 22, 2008
Page 6
CONSOLIDATED STATEMENT OF OPERATIONS
(dollars in thousands, except per share data) (unaudited)
| | | Six Months Ended June 30, 2008 | | Six Months Ended June 30, 2007 | | % Change | |
| | | | | | | | |
INTEREST INCOME | | | | | | | | | | |
| Interest and fees on loans | | $ | 69,296 | | $ | 70,485 | | | -2 | % |
| Interest on securities | | | 5,222 | | | 4,581 | | | 14 | % |
| Interest on federal funds sold | | | 129 | | | 2,087 | | | -94 | % |
Total Interest Income | | | 74,647 | | | 77,153 | | | -3 | % |
| | | | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | |
| Deposits | | | 27,602 | | | 34,605 | | | -20 | % |
| FHLB and other borrowings | | | 6,968 | | | 2,659 | | | 162 | % |
Total Interest Expense | | | 34,570 | | | 37,264 | | | -7 | % |
| | | | | | | | | | | |
| Net interest income | | | 40,077 | | | 39,889 | | | 0 | % |
| Provision for losses on loans and loan commitments | | | 2,800 | | | 6,130 | | | -54 | % |
| Net interest income after provision for loan losses and loan commitments | | | 37,277 | | | 33,759 | | | 10 | % |
| | | | | | | | | | | |
NONINTEREST INCOME | | | | | | | | | | |
| Service charges on deposits | | | 5,791 | | | 4,792 | | | 21 | % |
| Gain on sales of loans | | | 1,782 | | | 4,144 | | | -57 | % |
| Other | | | 3,187 | | | 2,586 | | | 23 | % |
Total Noninterest Income | | | 10,760 | | | 11,522 | | | -7 | % |
| | | | | | | | | | | |
NONINTEREST EXPENSES | | | | | | | | | | |
| Salaries and employee benefits | | | 14,631 | | | 11,401 | | | 28 | % |
| Occupancy & equipment | | | 2,917 | | | 2,570 | | | 13 | % |
| Data processing | | | 1,536 | | | 1,510 | | | 2 | % |
| Other | | | 5,693 | | | 5,628 | | | 1 | % |
Total Noninterest Expenses | | | 24,777 | | | 21,109 | | | 17 | % |
| | | | | | | | | | | |
| Income before income taxes | | | 23,260 | | | 24,172 | | | -4 | % |
| Income tax | | | 8,780 | | | 9,509 | | | -8 | % |
NET INCOME | | $ | 14,480 | | $ | 14,663 | | | -1 | % |
| | | | | | | | | | | |
Per Share Data | | | | | | | | | | |
| Basic earnings per share | | $ | 0.49 | | $ | 0.50 | | | -1 | % |
| Diluted earnings per share | | $ | 0.49 | | $ | 0.50 | | | 0 | % |
| Basic | | | 29,334,024 | | | 29,358,335 | | | | |
| Diluted | | | 29,392,621 | | | 29,641,359 | | | | |
WIBC – 2Q08 results
CONSOLIDATED BALANCE SHEET
(dollars in thousands, except share data) (unaudited)
| | | June 30, | | Three Month | | March 31, | | One Year | | June 30, | |
| | | 2008 | | % Change | | 2008 | | % Change | | 2007 | |
| | | | | | | | | | | | |
ASSETS: | | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 69,497 | | | -10 | % | $ | 77,225 | | | -2 | % | $ | 70,949 | |
| Federal funds sold and other cash equivalents | | | 4 | | | -100 | % | | 20,004 | | | -100 | % | | 25,004 | |
Total Cash and Cash Equivalents | | | 69,501 | | | -29 | % | | 97,229 | | | -28 | % | | 95,953 | |
| | | | | | | | | | | | | | | | | |
| Securities available for sale | | | 232,857 | | | 7 | % | | 218,505 | | | 19 | % | | 195,103 | |
| Securities held to maturity | | | 369 | | | -2 | % | | 377 | | | -97 | % | | 11,603 | |
Total Securities | | | 233,226 | | | 7 | % | | 218,882 | | | 13 | % | | 206,706 | |
| Loans | | | | | | | | | | | | | | | | |
| Real estate construction | | | 50,562 | | | 10 | % | | 46,047 | | | 0 | % | | 50,786 | |
| Residential real estate | | | 71,206 | | | 2 | % | | 69,542 | | | 3 | % | | 69,311 | |
| Commercial real estate | | | 1,463,422 | | | 5 | % | | 1,390,629 | | | 22 | % | | 1,203,094 | |
| Commercial and industrial | | | 376,096 | | | 8 | % | | 349,842 | | | 23 | % | | 306,732 | |
| Consumer | | | 25,314 | | | -8 | % | | 27,440 | | | -41 | % | | 43,121 | |
| Total loans | | | 1,986,600 | | | 5 | % | | 1,883,500 | | | 19 | % | | 1,673,044 | |
| Allowance or loan losses | | | (23,494 | ) | | 6 | % | | (22,072 | ) | | 21 | % | | (19,378 | ) |
Loans Receivable, Net of Allowance for Loan Losses | | | 1,963,106 | | | 5 | % | | 1,861,428 | | | 19 | % | | 1,653,666 | |
| | | | | | | | | | | | | | | | | |
| Accrued interest receivable | | | 9,880 | | | 0 | % | | 9,832 | | | -2 | % | | 10,097 | |
| Due from customers on acceptances | | | 3,366 | | | 44 | % | | 2,332 | | | -21 | % | | 4,238 | |
| Other real estate owned | | | 465 | | | 249 | % | | 133 | | | 0 | % | | - | |
| Premises and equipment | | | 10,913 | | | 1 | % | | 10,828 | | | 7 | % | | 10,205 | |
| Federal home loan bank (FHLB) stock, at cost | | | 15,040 | | | 33 | % | | 11,280 | | | 77 | % | | 8,476 | |
| Cash surrender value of life insurance | | | 16,514 | | | 1 | % | | 16,367 | | | 4 | % | | 15,931 | |
| Investment in affordable housing partnerships | | | 6,428 | | | -1 | % | | 6,518 | | | 35 | % | | 4,779 | |
| Goodwill | | | 6,675 | | | 0 | % | | 6,675 | | | 0 | % | | 6,675 | |
| Other intangible assets | | | 1,438 | | | -5 | % | | 1,512 | | | -17 | % | | 1,736 | |
| Other assets | | | 22,760 | | | 31 | % | | 17,419 | | | 8 | % | | 21,054 | |
TOTAL ASSETS | | $ | 2,359,312 | | | 4 | % | $ | 2,260,435 | | | 16 | % | $ | 2,039,516 | |
| | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY: | | | | | | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | | | | | | |
| Non-interest bearing demand deposits | | $ | 320,360 | | | 4 | % | $ | 308,037 | | | -2 | % | $ | 327,400 | |
| Savings & interest checking | | | 61,867 | | | 6 | % | | 58,146 | | | 15 | % | | 53,820 | |
| Money market deposits | | | 409,767 | | | 5 | % | | 391,987 | | | -8 | % | | 443,825 | |
| Time deposits in denomination of $100,000 or more | | | 773,176 | | | -3 | % | | 793,235 | | | -2 | % | | 792,031 | |
| Other time deposits | | | 174,119 | | | -1 | % | | 176,182 | | | 17 | % | | 148,849 | |
Total Deposits | | | 1,739,289 | | | 1 | % | | 1,727,587 | | | -2 | % | | 1,765,925 | |
| | | | | | | | | | | | | | | | | |
| Federal home loan bank and other borrowings | | | 325,000 | | | 35 | % | | 240,000 | | | 1525 | % | | 20,000 | |
| Acceptance outstanding | | | 3,366 | | | 44 | % | | 2,332 | | | -21 | % | | 4,238 | |
| Junior subordinated debentures | | | 87,321 | | | 0 | % | | 87,321 | | | 42 | % | | 61,547 | |
| Accrued interest and other liabilities | | | 22,650 | | | -12 | % | | 25,659 | | | -10 | % | | 25,219 | |
Total Liabilities | | | 2,177,626 | | | 5 | % | | 2,082,899 | | | 16 | % | | 1,876,929 | |
| | | | | | | | | | | | | | | | | |
STOCKHOLDERS’ EQUITY: | | | | | | | | | | | | | | | | |
| Common stock - no par value-authorized, 80,000,000 shares issued and outstanding 29,391,177, 29,391,177 and 29,371,696 shares, at June 30, 2008, March 31, 2008, and June 30, 2007, respectively | | | 51,911 | | | 1 | % | | 51,399 | | | 2 | % | | 50,733 | |
| less treasury stock, at cost; 127,425 , 127,425, and 0 shares, at June 30, 2008, March 31, 2008, and June 30, 2007, respectively | | | (1,262 | ) | | 0 | % | | (1,262 | ) | | 0 | % | | - | |
| Retained earnings | | | 131,443 | | | 5 | % | | 125,483 | | | 17 | % | | 112,564 | |
| Accumulated other comprehensive income, net of taxes | | | (406 | ) | | -121 | % | | 1,916 | | | -43 | % | | (710 | ) |
Total Stockholders’ Equity | | | 181,686 | | | 2 | % | | 177,536 | | | 12 | % | | 162,587 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | $ | 2,359,312 | | | 4 | % | $ | 2,260,435 | | | 16 | % | $ | 2,039,516 | |
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WIBC – 2Q08 results
July 22, 2008
SUMMARY OF FINANCIAL DATA (dollars in thousands, except per share data) (unaudited)
| AVERAGE BALANCES | | Quarter Ended | | Quarter Ended | | Quarter Ended | |
| | | June 30, 2008 | | March 31, 2008 | | June 30, 2007 | |
| | | | | | | | |
| Average assets | | $ | 2,303,278 | | $ | 2,211,860 | | $ | 1,996,898 | |
| Average equity | | $ | 181,645 | | $ | 175,332 | | $ | 161,855 | |
| Average net loans (includes LHFS) | | $ | 1,911,835 | | $ | 1,828,889 | | $ | 1,621,006 | |
| Average deposits | | $ | 1,726,147 | | $ | 1,704,820 | | $ | 1,724,088 | |
| Average time deposits in denomination of $100,000 or more | | $ | 795,080 | | $ | 788,630 | | $ | 783,100 | |
| Average interest earning assets | | $ | 2,149,188 | | $ | 2,061,264 | | $ | 1,851,415 | |
| | | Six Months Ended | | | | | Six Months Ended | |
| | | June 30, 2008 | | | | | June 30, 2007 | |
| | | | | | | | | |
| Average assets | | $ | 2,257,288 | | | | | $ | 1,994,399 | |
| Average equity | | $ | 178,488 | | | | | $ | 158,496 | |
| Average net loans (includes LHFS) | | $ | 1,870,362 | | | | | $ | 1,586,403 | |
| Average deposits | | $ | 1,715,484 | | | | | $ | 1,727,604 | |
| Average timed deposits in denomination of $100,000 or more | | $ | 791,855 | | | | | $ | 794,060 | |
| Average interest earning assets | | $ | 2,105,226 | | | | | $ | 1,851,419 | |
| | | Quarter Ended | | Quarter Ended | | Quarter Ended | |
PROFITABILITY | | June 30, 2008 | | March 31, 2008 | | June 30, 2007 | |
| | | | | | | | |
| Annualized return on average assets | | | 1.29 | % | | 1.28 | % | | 1.47 | % |
| Annualized return on average equity | | | 16.36 | % | | 16.08 | % | | 18.15 | % |
| Efficiency ratio | | | 48.39 | % | | 49.10 | % | | 38.95 | % |
| Annualized operating expense/average assets | | | 2.18 | % | | 2.21 | % | | 2.12 | % |
| Annualized net interest margin | | | 3.78 | % | | 3.83 | % | | 4.52 | % |
| | | Six Months Ended | | | Six Months Ended | |
| | | June 30, 2008 | | | June 30, 2007 | |
| | | | | | | |
| Annualized return on average assets | | | 1.28 | % | | | 1.47 | % |
| Annualized return on average equity | | | 16.22 | % | | | 18.50 | % |
| Efficiency ratio | | | 48.74 | % | | | 41.06 | % |
| Annualized operating expense/average assets | | | 2.20 | % | | | 2.12 | % |
| Annualized net interest margin | | | 3.81 | % | | | 4.31 | % |
| | | Quarter Ended | | Cost of | | Quarter Ended | | Cost of | | Quarter Ended | | Cost of | |
DEPOSIT COMPOSITION | | June 30, 2008 | | Fund | | March 31, 2008 | | Fund | | June 30, 2007 | | Fund | |
| Noninterest bearing demand deposits | | | 18.4 | % | | 0.00 | % | | 17.8 | % | | 0.00 | % | | 18.5 | % | | 0.00 | % |
| Savings & interest checking | | | 3.6 | % | | 2.56 | % | | 3.4 | % | | 2.38 | % | | 3.0 | % | | 1.81 | % |
| Money market deposits | | | 23.6 | % | | 3.05 | % | | 22.7 | % | | 3.76 | % | | 25.1 | % | | 4.48 | % |
| Time deposits of $100,000 or more | | | 44.4 | % | | 3.88 | % | | 45.9 | % | | 4.46 | % | | 44.9 | % | | 5.31 | % |
| Other time deposits | | | 10.0 | % | | 4.08 | % | | 10.2 | % | | 4.60 | % | | 8.5 | % | | 4.97 | % |
| Total deposits | | | 100.0 | % | | 2.98 | % | | 100.0 | % | | 3.46 | % | | 100.0 | % | | 4.00 | % |
(continued)
WIBC – 2Q08 results
July 22, 2008
SUMMARY OF FINANCIAL DATA (dollars in thousands, except per share data) (unaudited)
| | | Quarter Ended | | Quarter Ended | | Quarter Ended | |
CAPITAL RATIO | | June 30, 2008 | | March 31, 2008 | | June 30, 2007 | |
| Tier 1 leverage ratio | | | 10.21 | % | | 10.24 | % | | 10.28 | % |
| Tier 1 risk-based capital ratio | | | 11.55 | % | | 11.75 | % | | 12.36 | % |
| Total risk-based capital ratio | | | 13.99 | % | | 14.37 | % | | 14.22 | % |
| Total shareholders' equity | | $ | 181,686 | | $ | 177,536 | | $ | 162,587 | |
| Book value per share | | $ | 6.18 | | $ | 6.04 | | $ | 5.54 | |
| Tangible book value per share | | $ | 5.92 | | $ | 5.70 | | $ | 5.27 | |
ALLOWANCE FOR LOAN LOSSES | | Quarter Ended | | Quarter Ended | | Quarter Ended | |
(net of SBA guaranteed portion) | | June 30, 2008 | | March 31, 2008 | | June 30, 2007 | |
| Balance at beginning of period | | $ | 22,072 | | $ | 21,579 | | $ | 17,214 | |
| Provision for losses on loans | | | 1,656 | | | 1,512 | | | 3,921 | |
| Recoveries on loans previously charged off | | | 1,654 | | | 121 | | | 31 | |
| Less charge offs | | | 1,888 | | | 1,140 | | | 1,788 | |
| Balance at end of period | | $ | 23,494 | | $ | 22,072 | | $ | 19,378 | |
| | | | | | | | | | | |
| Net loan charge-offs to average total loans | | | 0.01 | % | | 0.06 | % | | 0.11 | % |
| Gross charge-offs to average total loans | | | 0.10 | % | | 0.06 | % | | 0.11 | % |
| Allowance for loan losses/gross loans | | | 1.18 | % | | 1.17 | % | | 1.16 | % |
| Allowance for loan losses/non-accrual loans | | | 142.68 | % | | 196.64 | % | | 264.15 | % |
| Allowance for loan losses/non-performing loans | | | 142.64 | % | | 184.35 | % | | 230.33 | % |
| Allowance for loan losses/non-performing assets | | | 138.64 | % | | 163.26 | % | | 228.35 | % |
| | | Six Months Ended | | | Six Months Ended | |
| | | June 30, 2008 | | | June 30, 2007 | |
| Balance at beginning of period | | $ | 21,579 | | | $ | 18,654 | |
| Provision for losses on loans | | | 3,168 | | | | 5,176 | |
| Recoveries on loans previously charged off | | | 1,775 | | | | 82 | |
| Less charge offs | | | 3,028 | | | | 4,534 | |
| Balance at end of period | | $ | 23,494 | | | $ | 19,378 | |
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS | | Quarter Ended | | Quarter Ended | | Quarter Ended | |
| | | June 30, 2008 | | March 31, 2008 | | June 30, 2007 | |
| Balance at beginning of period | | $ | 1,886 | | $ | 1,998 | | $ | 1,266 | |
| (Recapture of) provision for losses on off-balance sheet items | | | (256 | ) | | (112 | ) | | 579 | |
| Balance at end of period | | $ | 1,630 | | $ | 1,886 | | $ | 1,845 | |
| | | Six Months Ended | | | Six Months Ended | |
| | | June 30, 2008 | | | June 30, 2007 | |
| Balance at beginning of period | | $ | 1,998 | | | $ | 891 | |
| (Recapture of) provision for losses on off-balance sheet items | | | (368 | ) | | | 954 | |
| Balance at end of period | | $ | 1,630 | | | $ | 1,845 | |
(continued)
WIBC – 2Q08 results
July 22, 2008
Page 10
SUMMARY OF FINANCIAL DATA (dollars in thousands, except per share data) (unaudited)
NON-PERFORMING ASSETS | | Quarter Ended | | Quarter Ended | | Quarter Ended | |
(net of SBA guaranteed portion) | | June 30, 2008 | | March 31, 2008 | | June 30, 2007 | |
| Nonaccrual loans: | | | | | | | | | | |
| Construction | | $ | - | | $ | - | | $ | - | |
| Real estate secured | | | 12,405 | | | 8,061 | | | 6,320 | |
| Commercial and industrial | | | 3,797 | | | 2,914 | | | 789 | |
| Consumer | | | 265 | | | 250 | | | 227 | |
| Total | | | 16,467 | | | 11,225 | | | 7,336 | |
| Loans 90 days or more past due and still accruing: | | | | | | | | | | |
| Construction | | | - | | | - | | | - | |
| Real estate secured | | | - | | | 503 | | | 743 | |
| Commercial and industrial | | | 4 | | | 56 | | | 334 | |
| Consumer | | | - | | | 189 | | | - | |
| Total | | | 4 | | | 748 | | | 1,077 | |
| Total nonperforming loans | | | 16,471 | | | 11,973 | | | 8,413 | |
| Total nonperforming loans/gross loans | | | 0.83 | % | | 0.64 | % | | 0.50 | % |
| Restructured loans | | | - | | | 1,393 | | | - | |
| OREO and repossesed vehicles | | | 476 | | | 154 | | | 73 | |
| Total nonperforming assets | | $ | 16,947 | | $ | 13,520 | | $ | 8,486 | |
| Total nonperforming assets/total assets | | | 0.72 | % | | 0.60 | % | | 0.42 | % |
(continued)
(more)
WIBC – 2Q08 results
July 22, 2008
Page 11
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars in Thousands) (unaudited)
| | | For the Three Months Ended | |
| | | June 30, 2008 | | March 31, 2008 | | June 30, 2007 | |
| | | Average | | Interest | | Average | | Average | | Interest | | Average | | Average | | Interest | | Average | |
| | | Balance | | Income/ | | Yield/ | | Balance | | Income/ | | Yield/ | | Balance | | Income/ | | Yield/ | |
| | | | | Expense | | Rate | | | | Expense | | Rate | | | | Expense | | Rate | |
INTEREST EARNING ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LOANS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Real estate loans | | $ | 1,551,297 | | $ | 26,994 | | | 6.96 | % | $ | 1,486,208 | | $ | 27,531 | | | 7.41 | % | $ | 1,289,641 | | $ | 26,821 | | | 8.32 | % |
| Commercial loans | | | 362,376 | | | 5,382 | | | 5.94 | % | | 340,095 | | | 5,990 | | | 7.04 | % | | 311,971 | | | 6,927 | | | 8.88 | % |
| Consumer loans | | | 26,376 | | | 431 | | | 6.53 | % | | 29,873 | | | 526 | | | 7.04 | % | | 45,704 | | | 923 | | | 8.08 | % |
| Total loans - gross | | | 1,940,049 | | | 32,807 | | | 6.76 | % | | 1,856,176 | | | 34,047 | | | 7.34 | % | | 1,647,316 | | | 34,671 | | | 8.42 | % |
| Loan fees toward yield | | | | | | 1,171 | | | | | | | | | 1,271 | | | | | | | | | 1,913 | | | | |
| Allowance for loan losses & unearned income | | | (28,213 | ) | | | | | | | | (27,287 | ) | | | | | | | | (26,310 | ) | | | | | | |
Net Loans | | $ | 1,911,836 | | $ | 33,978 | | | 7.11 | % | $ | 1,828,889 | | $ | 35,318 | | | 7.72 | % | $ | 1,621,006 | | $ | 36,584 | | | 9.03 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| U.S. government agencies | | $ | 228,806 | | $ | 2,638 | | | 4.61 | % | $ | 222,524 | | $ | 2,584 | | | 4.64 | % | $ | 188,184 | | $ | 2,342 | | | 4.98 | % |
| Federal funds sold | | | 8,546 | | | 49 | | | 2.27 | % | | 9,851 | | | 80 | | | 3.27 | % | | 42,225 | | | 578 | | | 5.48 | % |
Total Investment Securities and Other Earning Assets | | $ | 237,352 | | $ | 2,687 | | | 4.53 | % | $ | 232,375 | | $ | 2,664 | | | 4.59 | % | $ | 230,409 | | $ | 2,920 | | | 5.07 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL INTEREST-EARNING ASSETS | | $ | 2,149,188 | | $ | 36,665 | | | 6.82 | % | $ | 2,061,264 | | $ | 37,982 | | | 7.37 | % | $ | 1,851,415 | | $ | 39,504 | | | 8.53 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
INTEREST BEARING LIABILITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
INTEREST-BEARING DEPOSITS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Money market | | $ | 393,182 | | $ | 2,998 | | | 3.05 | % | $ | 396,595 | | $ | 3,725 | | | 3.76 | % | $ | 421,205 | | $ | 4,722 | | | 4.48 | % |
| NOW | | | 22,533 | | | 76 | | | 1.35 | % | | 22,520 | | | 79 | | | 1.41 | % | | 22,119 | | | 66 | | | 1.20 | % |
| Savings | | | 35,995 | | | 299 | | | 3.32 | % | | 32,617 | | | 249 | | | 3.05 | % | | 29,039 | | | 165 | | | 2.28 | % |
| Time deposits of $100,000 or more | | | 795,081 | | | 7,720 | | | 3.88 | % | | 788,630 | | | 8,799 | | | 4.46 | % | | 783,100 | | | 10,391 | | | 5.31 | % |
| Other time deposits | | | 173,783 | | | 1,771 | | | 4.08 | % | | 163,993 | | | 1,886 | | | 4.60 | % | | 152,789 | | | 1,899 | | | 4.97 | % |
Total Interest Bearing Deposits | | $ | 1,420,574 | | $ | 12,864 | | | 3.62 | % | $ | 1,404,355 | | $ | 14,738 | | | 4.20 | % | $ | 1,408,252 | | $ | 17,243 | | | 4.90 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
BORROWINGS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| FHLB advances and other borrowings | | $ | 281,846 | | $ | 2,356 | | | 3.34 | % | $ | 217,593 | | $ | 2,043 | | | 3.76 | % | $ | 21,540 | | $ | 204 | | | 3.79 | % |
| Junior subordinated debentures | | | 87,321 | | | 1,112 | | | 5.09 | % | | 87,321 | | | 1,457 | | | 6.68 | % | | 61,547 | | | 1,141 | | | 7.42 | % |
Total Borrowings | | $ | 369,167 | | $ | 3,468 | | | 3.76 | % | $ | 304,914 | | $ | 3,500 | | | 4.59 | % | $ | 83,087 | | $ | 1,345 | | | 6.48 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL INTEREST BEARING LIABILITIES | | $ | 1,789,741 | | $ | 16,332 | | | 3.65 | % | $ | 1,709,269 | | $ | 18,238 | | | 4.27 | % | $ | 1,491,339 | | $ | 18,588 | | | 4.99 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NET INTEREST INCOME | | | | | $ | 20,333 | | | | | | | | $ | 19,744 | | | | | | | | $ | 20,916 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NET INTEREST SPREAD | | | | | | | | | 3.17 | % | | | | | | | | 3.10 | % | | | | | | | | 3.55 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NET INTEREST MARGIN | | | | | | | | | 3.78 | % | | | | | | | | 3.83 | % | | | | | | | | 4.52 | % |
(more)
WIBC – 2Q08 results
July 22, 2008
Page 12
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, 2008 | | June 30, 2007 | |
| | | Average | | Interest | | Average | | Average | | Interest | | Average | |
| | | Balance | | Income/ | | Yield/ | | Balance | | Income/ | | Yield/ | |
| | | | | Expense | | Rate | | | | Expense | | Rate | |
INTEREST EARNING ASSETS | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
LOANS: | | | | | | | | | | | | | | | | | | | |
| Real estate loans | | $ | 1,518,752 | | $ | 54,526 | | | 7.18 | % | $ | 1,260,721 | | $ | 51,542 | | | 8.18 | % |
| Commercial loans | | | 351,236 | | | 11,372 | | | 6.48 | % | | 303,887 | | | 13,511 | | | 8.89 | % |
| Consumer loans | | | 28,124 | | | 956 | | | 6.80 | % | | 48,347 | | | 1,929 | | | 7.98 | % |
| Total loans - gross | | | 1,898,112 | | | 66,854 | | | 7.04 | % | | 1,612,955 | | | 66,982 | | | 8.31 | % |
| Loan fees toward yield | | | | | | 2,442 | | | | | | | | | 3,503 | | | | |
| Allowance for loan losses & unearned income | | | (27,750 | ) | | | | | | | | (26,552 | ) | | | | | | |
Gross Loans, Net | | $ | 1,870,362 | | $ | 69,296 | | | 7.41 | % | $ | 1,586,403 | | $ | 70,485 | | | 8.89 | % |
| | | | | | | | | | | | | | | | | | | | |
INVESTMENT SECURITIES AND OTHER INTEREST-EARNING ASSETS: | | | | | | | | | | | | | | | | | | | |
| U.S. government agencies | | $ | 225,665 | | $ | 5,222 | | | 4.63 | % | $ | 187,378 | | $ | 4,581 | | | 4.89 | % |
| Federal funds sold | | | 9,199 | | | 129 | | | 2.81 | % | | 77,638 | | | 2,087 | | | 5.38 | % |
Total Investment Securities and Other Earning Assets | | $ | 234,864 | | $ | 5,351 | | | 4.56 | % | $ | 265,016 | | $ | 6,668 | | | 5.03 | % |
| | | | | | | | | | | | | | | | | | | | |
TOTAL INTEREST-EARNING ASSETS | | $ | 2,105,226 | | $ | 74,647 | | | 7.09 | % | $ | 1,851,419 | | $ | 77,153 | | | 8.33 | % |
| | | | | | | | | | | | | | | | | | | | |
INTEREST BEARING LIABILITIES | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
INTEREST-BEARING DEPOSITS: | | | | | | | | | | | | | | | | | | | |
| Money market | | $ | 394,888 | | $ | 6,723 | | | 3.40 | % | $ | 413,608 | | $ | 9,320 | | | 4.51 | % |
| NOW | | | 22,527 | | | 155 | | | 1.38 | % | | 21,541 | | | 125 | | | 1.16 | % |
| Savings | | | 34,306 | | | 548 | | | 3.19 | % | | 29,154 | | | 306 | | | 2.10 | % |
| Time deposits of $100,000 or more | | | 791,855 | | | 16,519 | | | 4.17 | % | | 794,060 | | | 21,008 | | | 5.29 | % |
| Other time deposits | | | 168,888 | | | 3,657 | | | 4.33 | % | | 155,596 | | | 3,846 | | | 4.94 | % |
Total Interest-Bearing Deposits | | $ | 1,412,464 | | $ | 27,602 | | | 3.91 | % | $ | 1,413,959 | | $ | 34,605 | | | 4.89 | % |
| | | | | | | | | | | | | | | | | | | | |
BORROWINGS: | | | | | | | | | | | | | | | | | | | |
| FHLB advances and other borrowings | | | 249,720 | | | 4,399 | | | 3.52 | % | | 20,783 | | | 386 | | | 3.71 | % |
| Junior subordinated debentures | | | 87,321 | | | 2,569 | | | 5.88 | % | | 61,547 | | | 2,273 | | | 7.39 | % |
Total Borrowings | | $ | 337,041 | | $ | 6,968 | | | 4.13 | % | $ | 82,330 | | $ | 2,659 | | | 6.46 | % |
| | | | | | | | | | | | | | | | | | | | |
TOTAL INTEREST BEARING LIABILITIES | | $ | 1,749,505 | | $ | 34,570 | | | 3.95 | % | $ | 1,496,289 | | $ | 37,264 | | | 4.98 | % |
| | | | | | | | | | | | | | | | | | | | |
NET INTEREST INCOME | | | | | $ | 40,077 | | | | | | | | $ | 39,889 | | | | |
| | | | | | | | | | | | | | | | | | | | |
NET INTEREST SPREAD | | | | | | | | | 3.14 | % | | | | | | | | 3.35 | % |
Transmitted on Prime Newswire on July 22, 2008, at 3:30 a.m. PDT.
