EXHIBIT 99
WILSHIRE BANCORP NET INCOME UP 53% IN THIRD QUARTER AND YEAR-TO-DATE;
STRONG LOAN PRODUCTION AND EXCELLENT CREDIT QUALITY CONTINUE
LOS ANGELES, CA - October 20, 2004 - Wilshire Bancorp Inc. (Nasdaq: WIBC), the
holding company for Wilshire State Bank, today reported strong loan production
and a continued focus on improving operating efficiencies resulted in record
profits in both the third quarter and first nine months of 2004, with net income
growing 53% in both periods. For the quarter ended September 30, 2004, net
income was $5.1 million, or $0.36 per diluted share, compared to $3.3 million,
or $0.23 per share in the third quarter a year ago. Year-to-date, net income
grew to $14.3 million, or $1.00 per diluted share, compared to $9.3 million, or
$0.65 per share in the first nine months of 2003.
In August 2004, Wilshire Bancorp was formed as a holding company for Wilshire
State Bank (formerly WSBK). As a result, all results prior to the formation of
the Wilshire Bancorp reflect the operations of the bank, which are directly
comparable to those of the holding company. All per share results reflect the
two stock dividends, totaling 220%, issued to the bank's shareholders in 2003,
prior to the one-for-one stock conversion into Wilshire Bancorp in connection
with the holding company formation.
"We formed a holding company to provide us with greater operating flexibility
and expand the offering of financial services we provide," stated Soo Bong Min,
President and CEO. "This is part of our overall growth strategy: selling more
products from more locations, cross-selling current customers on additional
services, and constantly prospecting for new business. Our recent expansion
efforts include opening a full-service branch in L.A.'s Fashion Town in March
and three Business Lending Offices in June of this year. In addition, we plan to
open our thirteenth branch in Buena Park later this month." Due to the
diversification and expansion efforts, as well as a thriving multi-ethnic
business environment in each of the bank's operating areas, new loan
originations were up 44% year-to-date to $522.3 million, compared to $362.9
million in the first nine months of 2003. Total loans have grown 39% in the past
year to $972.8 million, compared to $699.8 million at the end of the third
quarter last year. Assets have increased to $1.21 billion, up from $892.0
million a year ago. Deposits increased 33% to $1.05 billion at the end of the
third quarter, compared to $786.5 million a year earlier. In the first nine
months of 2004, Wilshire generated an annualized return on average equity (ROE)
of 26.0%, up from 24.7% a year ago. The annualized return on average assets
(ROA) improved to 1.71% year-to-date, compared to 1.61% in the first three
quarters of 2003. The efficiency ratio improved to 41.9% for the period,
compared to 47.7% in the first nine months of last year. For the quarter ended
September 30, 2004, Wilshire's ROE improved to 25.3%, up from 24.8% in the third
quarter last year, and ROA was 1.67%, compared to 1.60% in the same quarter last
year. The efficiency ratio improved to 41.8% in the quarter, compared to 48.1%
in the third quarter a year ago. "While we have grown our franchise and
consistently post some of the best profitability ratios in the industry, we have
maintained our high underwriting standards and continue to report excellent
credit quality," stated Brian Cho, Chief Financial Officer. "Non-performing
loans have dropped dramatically from a year ago, both in dollars and as a
percentage of gross loans. However, we have increased our provision for loan
losses to keep pace with our growing portfolio, and believe that our current
coverage is adequate." At quarter-end, non-performing loans (NPLs) were $3.0
million, representing just 0.31% of total loans, compared to $4.2 million, or
0.61% of total loans a year earlier. The provision for loan losses nearly
doubled from a year ago for both the quarter and nine-month periods, totaling
$1.5 million and $3.0 million, respectively, in 2004. The allowance for loan
losses totaled $11.1 million at September 30, 2004, representing 1.14% of gross
loans and 370% of NPLs. A year ago, the loan loss allowance was $8.2 million, or
1.17% of gross loans and 192% of NPLs. "Our net interest margin showed an
improvement of 23 basis points on a sequential quarter basis, at 3.97% from
3.74% in the second quarter," Cho said. "I expect that trend will persist if
short-term borrowing rates continue to rise. On a year-over-year basis, however,
the margin was down, as steep competition for deposits has resulted in an
increased cost of funds." Net interest margin was 4.07% in the third quarter of
2003. For the nine-month period, the net interest margin improved by one basis
point from a year ago to 3.91%. In the third quarter, net interest income grew
43% to $11.1 million in the quarter, compared to $7.7 million a year ago.
Interest income grew 48% to $15.9 million, reflecting the rising short-term
interest rate environment and larger asset base, while interest expense
increased 61% to $4.8 million. Other operating income grew by 42% to $5.9
million, from $4.2 million in the third quarter of 2003, primarily due to larger
gains on the sale of loans and securities. Other operating expense increased by
24% to $7.1 million, compared to $5.7 million in the third quarter a year ago,
reflecting the increased staffing and occupancy expenses associated with the
bank's growth. For the nine-month period, the same factors as above drove the
results. Net interest income increased 43% to $29.8 million year-to-date, from
$20.8 million last year. Other operating income grew 38% to $16.2 million,
compared to $11.7 million in the nine-month period a year ago. Other operating
expense increased by 24% to $19.3 million, from $15.5 million in the first three
quarters of 2003. At quarter-end, shareholders' equity increased 52% to $83.4
million, from $55.0 million at September 30, 2003, while book value grew to
$5.93 per share, from $4.25 a year prior. Capital ratios continue to exceed the
"Well Capitalized" guidelines established by regulatory agencies. At September
30, 2004, Tier 1 Leverage Ratio was 8.02%, Tier 1 Risk-Based Capital Ratio was
9.84%, and Total Risk-Based Capital Ratio was 12.01%, compared to 6.61%, 7.58%,
and 10.10%, respectively, at the end of the third quarter last year.
(more)
WIBC - Record 3Q04 Profits
October 20, 2004
Page Two
Wilshire Bancorp is the holding company for Wilshire State Bank, which has ten
full-service branch offices in Los Angeles County and two branches in Orange
County. The bank is an SBA Preferred Lender in all branch office locations, as
well as its loan production office locations in the San Jose area, Seattle and
Dallas, which are primarily utilized for SBA lending. 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. The bank'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.
CONSOLIDATED STATEMENT OF
OPERATIONS
- ---------------------------
(unaudited)(dollars in
thousands, except per Quarter Ended September Nine Months Ended
share data) 30, Percentage September 30, Percentage
2004 2003 Change 2004 2003 Change
----------- ----------- ---------- ----------- ----------- ----------
INTEREST INCOME
Interest on Loans & Leases $ 14,837 $ 10,024 48% $ 39,449 $ 27,127 45%
Interest on Securities 786 591 33% 2,150 1,762 22%
Interest on Federal Funds Sold
and Other Cash Equivalents 302 113 166% 584 488 20%
----------- ----------- ----------- -----------
Total Interest Income 15,925 10,728 48% 42,183 29,377 44%
INTEREST EXPENSE
Deposits 4,313 2,817 53% 11,150 8,114 37%
FHLB Advances and Other 499 163 206% 1,276 465 175%
----------- ----------- ----------- -----------
Total Interest Expense 4,812 2,980 61% 12,426 8,579 45%
Net Interest Income 11,113 7,748 43% 29,757 20,798 43%
Provision for Loan Losses 1,450 755 92% 3,017 1,551 95%
----------- ----------- ----------- -----------
Net Interest Income After Loan
Loss Provision 9,663 6,993 38% 26,740 19,247 39%
OTHER OPERATING INCOME
Fees on Deposits 1,892 1,572 20% 5,549 5,076 9%
Gain on Sales of Loans 2,731 1,644 66% 6,902 3,758 84%
Other 1,324 978 35% 3,756 2,908 29%
----------- ----------- ----------- -----------
Total Other Operating Income 5,947 4,194 42% 16,207 11,742 38%
OPERATING EXPENSES
Salaries and Employee Benefits 3,709 3,115 19% 10,386 8,798 18%
Occupancy & Equipment 711 569 25% 1,996 1,571 27%
Other 2,708 2,050 32% 6,891 5,154 34%
----------- ----------- ----------- -----------
Total Other Operating Expenses 7,128 5,734 24% 19,273 15,523 24%
----------- ----------- ----------- -----------
Income Before Taxes 8,482 5,453 56% 23,674 15,466 53%
Income Tax 3,382 2,122 59% 9,405 6,128 53%
----------- ----------- ----------- -----------
NET INCOME $ 5,100 $ 3,331 53% $ 14,269 $ 9,338 53%
=========== =========== =========== ===========
Per Share Data
Basic Earnings Per Common Share $ 0.36 $ 0.26 41% $ 1.04 $ 0.73 42%
Earnings Per Share - Assuming
Dilution $ 0.36 $ 0.23 55% $ 1.00 $ 0.65 54%
Weighted Average Shares
Outstanding 14,022,645 12,916,734 13,728,005 12,875,036
Weighted Average Shares
Outstanding Including
Dilutive Effect Of Stock Options 14,351,566 14,497,961 14,219,085 14,329,652
CONSOLIDATED FINANCIAL
RATIOS
- ---------------------------
(unaudited)(dollars in
thousands, except per Nine Months
share data) Quarter Ended Ended
September 30, September 30,
2004 2003 2004 2003
------- ------ ------- -------
Annualized Return on Average Assets 1.67% 1.60% 1.71% 1.61%
Annualized Return on Average Equity 25.25% 24.80% 26.00% 24.67%
Efficiency Ratio 41.78% 48.06% 41.93% 47.71%
Annualized Operating Expense/Average
Assets 2.33% 2.76% 2.32% 2.67%
Annualized Net Interest Margin 3.97% 4.07% 3.91% 3.90%
Tier 1 Leverage Ratio 8.02% 6.61%
Tier 1 Risk-Based Capital Ratio 9.84% 7.58%
Total Risk-Based Capital Ratio 12.01% 10.10%
Book Value Per Share $ 5.93 $ 4.25
(more)
WIBC - Record 3Q04 Profits
October 20, 2004
Page Three
CONSOLIDATED BALANCE SHEET
- ---------------------------
(unaudited)(dollars in
thousands, except share
data) September December September One Year 30, 31,
30, Percentage
2004 2003 2003 Change
---------- -------- -------- ----------
ASSETS:
Noninterest-Earning Demand
Deposits and Cash on Hand $ 47,713 $ 62,486 $ 46,221 3%
Federal Funds Sold and
Other Cash Equivalents 68,000 58,000 55,000 24%
---------- -------- --------
Total Cash and Cash
Equivalents 115,713 120,486 101,221 14%
Interest-Bearing Deposits
in Other Financial
Institutions 3 202 697 -100%
Securities Available For
Sale 65,497 56,995 43,311 51%
Securities Held To
Maturity 26,309 23,427 26,303 0%
---------- -------- --------
Total Securities 91,806 80,422 69,614 32%
Loans & Leases Receivable 972,830 757,005 699,756 39%
Reserve For Loan Losses 11,131 9,011 8,157 36%
---------- -------- --------
Loans & Leases Receivable,
Net 961,699 747,994 691,599 39%
Accrued Interest
Receivable 3,572 2,685 2,477 44%
Other Real Estate Owned - 377 - n/a
Premises and Equipment 5,338 4,802 3,257 64%
Federal Home Loan Bank
(FHLB) Stock, at Cost 4,278 1,510 1,500 185%
Cash surrender value of
Life Insurance 11,435 11,102 10,974 4%
Other Assets 18,057 13,684 10,678 69%
---------- -------- --------
TOTAL ASSETS $1,211,901 $983,264 $892,017 36%
========== ======== ========
LIABILITIES AND
STOCKHOLDERS' EQUITY:
LIABILITIES:
Non-interest Bearing
Demand Deposits $ 255,719 $238,018 $213,510 20%
Savings & NOW Deposits 47,776 46,668 40,947 17%
Money Market Deposits 205,362 150,591 133,343 54%
Time Deposits 538,727 421,239 398,670 35%
---------- -------- --------
Total Deposits 1,047,584 856,516 786,470 33%
FHLB Advances 45,000 29,000 30,000 50%
Acceptance 2,312 2,750 1,635 41%
Subordinated Debentures 25,464 25,464 10,000 n/a
Accrued Interest and Other
Liabilities 8,173 10,793 8,937 -9%
---------- -------- --------
Total Liabilities 1,128,533 924,523 837,042 35%
STOCKHOLDERS' EQUITY:
Common Stock - No Par
Value -Authorized,
80,000,000 Shares; Issued
and Outstanding,
14,052,195, 12,951,364
and 12,924,764 Shares,
Respectively 38,997 28,391 28,285 38%
Retained Earnings 44,415 30,147 26,668 67%
Accumulated Other
Comprehensive Income, Net
of Taxes (44) 203 22 -302%
---------- -------- --------
Total Stockholders' Equity 83,368 58,741 54,975 52%
---------- -------- --------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,211,901 $983,264 $892,017 36%
========== ======== ========
AVERAGE BALANCES
- --------------------------- Quarter Ended Nine Months Ended
(unaudited)(dollars in September 30, September 30,
thousands) 2004 2003 2004 2003
---------- ---------- ---------- ----------
Average Assets $1,223,991 $ 831,570 $1,109,718 $ 775,068
Average Equity $ 80,783 $ 53,722 $ 73,175 $ 50,463
Average Net Loans (includes
LHFS) $ 945,462 $ 648,312 $ 867,439 $ 588,847
Average Deposits $1,053,700 $ 740,618 $ 955,648 $ 692,718
Average Interest Earning
Assets $1,120,497 $ 761,544 $1,014,887 $ 710,971
(more)
WIBC - Record 3Q04 Profits
October 20, 20044
Page Four
ALLOWANCE FOR LOAN LOSSES Quarter Ended Nine Months Ended
- --------------------------- September 30, September 30,
(unaudited) (dollars in 2004 2003 2004 2003
thousands) -------- ------- ------- -------
Balance at Beginning of Period $ 10,251 $ 7,278 $ 9,011 $ 6,343
Provision for Loan Losses $ 1,450 $ 755 $ 3,017 $ 1,551
Less Charge Offs (Net Recoveries) $ 501 $ (129) $ 441 $ (264)
Less: Provision for (recapture
of)losses on off balance sheet
item $ 69 $ 5 $ 456 $ 1
-------- ------- ------- -------
Balance at End of Period $ 11,131 $ 8,157 $11,131 $ 8,157
Loan Loss Allowance/Gross Loans 1.14% 1.17%
Loan Loss Allowance/Non-
performing Loans 369.75% 192.31%
Loan Loss Allowance/Total Assets 0.92% 0.91%
Loan Loss Allowance/Non-performing
Assets 369.75% 192.31%
NON-PERFORMING ASSETS
- --------------------------- September 30,
(net of guaranteed portion) 2004 2003
------ ------
Accruing Loans - 90 Days Past Due $ 156 $ 397
Non-accrual Loans 2,838 3,820
Restructured Loans 16 25
------ ------
Total Non-performing Loans 3,010 4,242
Total Non-performing Loans/Gross Loans 0.31% 0.61%
OREO $ - $ -
------ ------
Total Non-performing Assets $3,010 $4,242
Total Non-performing Assets/Total Assets 0.25% 0.48%
BOARD OF DIRECTORS Steven Koh, Chairman Mel Elliot Larry D. Greenfield Gap Su Kim
Soo Bong Min Fred F. Mautner Young Hi Pak Harry Siafaris
Kyu Hyun Kim Richard Y. Lim Forrest I. Stichman Donald Byun
CORPORATE OFFICERS: Soo Bong Min, President &Brian E. Cho, SVP & Joanne Kim, SVP & CLO
INDEPENDENT AUDITORS: Deloitte & Touche, LLP (Los Angeles, CA)
TRANSFER AGENT: US Stock Transfer Corp. (Glendale, CA 818.502.1404)
LEGAL COUNSEL: Fried, Bird & Crumpacker (Los Angeles, CA) Jenkens & Gilchrist, LLP ( Dallas, TX)
CORPORATE OFFICE & DEPARTMENTS BRANCH OFFICES
3200 Wilshire Boulevard, WILSHIRE OFFICE (213.387.3200) 3200 Wilshire Boulevard, Los Angeles, CA 90010
Los Angeles,CA 90010 WESTERN OFFICE (213.387.7070) 841 South Western Avenue, Los Angeles, CA 90005
CORPORATE OFFICE (213.387.3200) CERRITOS OFFICE (562.926.2520) 17500 Carmenita Rd., Cerritos, CA 90703
SBA DEPARTMENT (888.WSB.LEND) DOWNTOWN OFFICE (213.763.1800) 1122 South Maple Ave., Los Angeles, CA 90015
TRADE FINANCE DEPARTMENT (213.427.6897) FASHION TOWN OFFICE (213.746.3200) 1300 S. San Pedro St.,Suite 200, Los Angeles,
HOME LOAN CENTER (213.427.1490) CA 90015
AUTO LOAN CENTER (213.427.6545) GARDEN GROVE OFFICE (714.741.6100) 10131 Westminster Ave., Garden Grove, CA 92843
GARDENA OFFICE (310.527.5300) 15435 South Western Avenue, Gardena, CA 90249
BUSINESS LENDING OFFICES HUNTINGTON PARK OFFICE (323.584.5950) 6350 Pacific Boulevard,
SAN JOSE OFFICE (408.942.4200) Huntington Park, CA 90255
1367 Jacklin Road, Milpitaas, CA 95305 IRVINE OFFICE (714.730.2200) 14551 Red Hill Avenue, Tustin, CA 92680
DALLAS OFFICE (972.488.0072) MID-WILSHIRE OFFICE (213.427.7711) 3832 Wilshire Boulevard, Los Angeles, CA 90012
12300 Ford Road, Suite 348, Dallas, TX 75234 ROWLAND HEIGHTS OFFICE (909.979.8020) 19765 Colima Rd, Rowland Heights, CA 91748
SEATTLE OFFICE (206.223.8176) VALLEY OFFICE (818.773.6133) 8401 Reseda Boulevard, Northridge, CA 91324
10700 Meridian Avenue, Suite 502, Seattle, FULLERTON OFFICE (714.690.1400) 5254 Beach Boulevard, Cit of Buena Park, CA 90621
WA 98133 OKLAHOMA OFFICE (405.942.9600)
4200 Perimeter Center Dr., Suite 245, Oklahoma
City, OK 73112 LAS VEGAS OFFICE (702.210.2463)
3160 S. Valley View, Suite 105, Las Vegas,
NV 89102 SAN ANTONIO OFFICE (210.490.4551)
13750 San Pedro Avenue, Suites 608 and 611, San
Antonio, TX 78232
Statements concerning future performance, events, expectations for growth and
market forecasts, and 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 volumes,
the ability to expand net interest margin, loan portfolio performance, 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, which is subject
to change. Although any such projections and the factors influencing them will
likely change, the bank will not necessarily update the information, since
management will only provide guidance at certain points during the year. Such
information speaks only as of the date of this release. Additional information
on these and other factors that could affect our financial results are included
in filings by Wilshire Bancorp with the Securities and Exchange Commission.
-0-
NOTE: Transmitted on Business Wire at 5:00 am PDT on October 20, 2004.