WIBC Wilshire Bancorp, Inc. (MM)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported):

January 26, 2015

WILSHIRE BANCORP, INC.

(Exact name of registrant as specified in its charter)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o        Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o        Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o        Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o        Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02            RESULTS OF OPERATIONS AND FINANCIAL CONDITION

This information set forth under “Item 2.02. Results of Operations and Financial Condition,” including the Exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.

On January 26, 2015, Wilshire Bancorp, Inc. issued a press release announcing its results of operations and financial condition for the quarter ended December 31, 2014.  A copy of the press release is attached as Exhibit 99.1.

ITEM 9.01            FINANCIAL STATEMENTS AND EXHIBITS

(d)        Exhibits

Exhibit 99.1          Press release dated January 26, 2015, issued by Wilshire Bancorp, Inc.

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

WILSHIRE BANCORP, INC.

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EXHIBIT INDEX

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Exhibit 99.1

Wilshire Bancorp Reports Net Income of $16.1 Million or

$0.20 per Share for Fourth Quarter 2014

LOS ANGELES, January 26, 2015 - Wilshire Bancorp, Inc. (NASDAQ: WIBC) (the “Company”), the holding company for Wilshire Bank (the “Bank”), today reported net income of $16.1 million, or $0.20 per diluted common share, for the quarter ended December 31, 2014.  This compares to net income of $10.9 million, or $0.15 per diluted common share, for the same period of the prior year, and net income of $15.1 million, or $0.19 per diluted common share, for the third quarter of 2014.

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, “We had another strong quarter of business development with $327 million in loan originations, which is an increase of 47% compared to the same quarter in 2013.  As a result of the strong marketing team we have built, we have been able to more deeply penetrate our existing markets and generate full year loan growth of 16% in 2014.  We are also making good progress towards our goal of building a more diversified loan portfolio, as our commercial portfolio and our residential real estate portfolio are growing at significantly higher rates than our commercial real estate portfolio.  Our positive business development trends, continued low credit costs, and disciplined expense control has helped us to deliver a consistently strong level of returns with a return on average assets of 1.57% and a return on average equity of 12.65% for the full year 2014.”

“In addition to continuing to expand our customer base in our core markets, we plan to increase our presence in the Southeastern United States, where we are seeing strong growth in the multi-ethnic communities that we serve.  We believe this expansion will provide an incremental source of growth, while also helping us to build a stronger, more diversified banking franchise,” said Mr. Yoo.

Q4 2014 Summary

·        Net income totaled $16.1 million, or $0.20 per diluted common share, for the fourth quarter of 2014

·        Total net revenue of $47.4 million for the fourth quarter of 2014, an increase of 13.8% from the fourth quarter of 2013

·        Return on average assets of 1.59% and return on average equity of 13.27% for the fourth quarter of 2014

·        Net interest margin of 4.00% for the fourth quarter of 2014, a decrease from 4.26% for the third quarter of 2014

·        Loans receivable (net of deferred fees and costs) totaled $3.31 billion at December 31, 2014, an increase of 17% from $2.82 billion at December 31, 2013

·        Total deposits were $3.40 billion at December 31, 2014, an increase of 18% from $2.87 billion at December 31, 2013

·        Continued improvement in asset quality resulted in no provision for losses on loans and loan commitments for the fourth quarter of 2014

Wilshire Bancorp Inc. — 4Q 2014 Results

January 26, 2015

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STATEMENT OF OPERATIONS

Net interest income before provision for losses on loans and loan commitments totaled $37.5 million for the fourth quarter of 2014, an increase of 16% from $32.3 million for the fourth quarter of 2013, and an increase of 2% from $36.8 million for the third quarter of 2014.  The increase from the prior quarter is primarily attributable to a higher average loan balance.  Discount accretion income from loans acquired from Saehan Bancorp and BankAsiana totaled $2.4 million for the fourth quarter of 2014, compared to $2.9 million for the third quarter of 2014.

Net interest margin was 4.00% for the fourth quarter of 2014, compared to 4.26% for the third quarter of 2014, and 4.20% for the fourth quarter of 2013. Excluding the effect of the amortization/accretion of the purchase accounting adjustments for the acquisitions of Saehan Bancorp and BankAsiana, the net interest margin* was 3.74% for the fourth quarter of 2014, compared with 3.89% for the third quarter of 2014, and 3.91% for the fourth quarter of 2013.  The decrease in net interest margin is attributable to an increase in lower yielding fed funds sold balances and a decline in discount accretion income for the fourth quarter of 2014, compared to the third quarter of 2014 and fourth quarter of 2013.

Loan yields were 5.09% for the fourth quarter of 2014, compared with 5.12% for the third quarter of 2014, and 5.17% for the fourth quarter of 2013.  Excluding the effect of the accretion of the purchase accounting adjustments for the acquisitions of Saehan Bancorp and BankAsiana, loan yields* were 4.79% for the fourth quarter of 2014, compared to 4.74% for the third quarter of 2014, and 4.86% for the fourth quarter of 2013.

Net interest margin and loan yields excluding the effect of acquisition accounting adjustments are non-GAAP measures. Please refer to the “Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures” table at the end of this press release.

The total cost of deposits was 0.58% for the fourth quarter of 2014, compared with 0.53% for the third quarter of 2014 and 0.53% for the fourth quarter of 2013.  The increase in cost of deposits for the fourth quarter of 2014 compared to the third quarter of 2014 and fourth quarter of 2013, was primarily due to an increase in rates on time deposits.

Non-Interest Income

Total non-interest income was $9.9 million for the fourth quarter of 2014, compared to $9.3 million for the fourth quarter of 2013, and $9.6 million for the third quarter of 2014.  The increase from the prior quarter was primarily due to an increase in net gain on sale of Small Business Administration (“SBA”) loans, while the increase from the same period in 2013 was due to an increase in other non-interest income.

The $3.5 million in net gain on sale of loans recognized during the fourth quarter of 2014 consisted mostly of gains from the sale of SBA loans.  Net gain on sale of loans for the third quarter of 2014 was $2.4 million.  During the fourth quarter of 2014, the Company sold $35.5 million in SBA loans, compared with $20.3 million sold during the third quarter of 2014.

Non-Interest Expense

Total non-interest expense was $23.5 million for the fourth quarter of 2014, compared with $24.7 million for the fourth quarter of 2013, and $23.2 million for the third quarter of 2014.  The increase in non-interest expense from the prior quarter was due to increases in salaries and employee benefits and other non-interest expenses.

Total salaries and employee benefits expense was $12.4 million for the fourth quarter of 2014, compared with $12.9 million for the fourth quarter of 2013, and $12.3 million for the third quarter of 2014.

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Other non-interest expense for the fourth quarter of 2014 totaled $6.7 million, compared with $6.3 million for the fourth quarter of 2013, and $6.5 million for the third quarter of 2014.  The increase in other non-interest expense during the fourth quarter of 2014 compared to prior quarters was primarily attributable to an increase in expenses related to OREO (other real estate owned).

The Company’s operating efficiency ratio was 49.5% for the fourth quarter of 2014, compared with 59.2% for the fourth quarter of 2013, and 50.1% for the third quarter of 2014.

BALANCE SHEET

Total loans receivable (net of deferred fees and costs) were $3.31 billion at December 31, 2014, compared to $3.16 billion at September 30, 2014.  The increase in loans during the fourth quarter of 2014 was driven by growth in real estate secured and commercial & industrial loans.

The following table shows total loans receivable, loans held-for-sale, and total loans by loan type:

* Total loans receivable and total loans are net of deferred fees and costs as shown in the consolidated balance sheet presentation

The following table presents the December 31, 2014 balance of total loans by loan type and broken out by legacy Wilshire loans and loans acquired from former BankAsiana, Saehan Bank, and Mirae Bank.

* Represents loans balances net of fair value adjustments

The following table shows quarterly loan originations:

* Originations of warehouse lines of credit are presented under the Residential Mortgage Department as shown above, however, warehouse lines of credit are reported as commercial and industrial loans on the consolidated balance sheet.

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Originations for the fourth quarter of 2014 totaled $327.4 million, compared to $399.2 million for the third quarter of 2014, and $222.3 million for the fourth quarter of 2013.

Total SBA loans held-for-sale at the end of the fourth quarter of 2014 were $11.1 million, compared to $16.2 million at the end of the previous quarter.  The decision to retain or sell SBA loans is made on a quarter-to-quarter basis, depending on prevailing pricing in the secondary market and the Company’s liquidity needs.

Total deposits were $3.40 billion at December 31, 2014, compared with $3.19 billion at September 30, 2014.  The increase in total deposits was primarily attributable to growth in time deposits, which was partially offset by a decrease in money market deposits.

CREDIT QUALITY

During the fourth quarter of 2014, the Company continued to experience a general improvement in asset quality including a decline in non-accrual and classified loans.  As a result of the improved credit quality, the Company determined that no provision for losses on loans and loan commitments was required for the fourth quarter of 2014.  The allowance for loan losses totaled $48.6 million, or 1.47% of gross loans (excluding loans held-for-sale), at December 31, 2014, compared to $53.1 million, or 1.67% of gross loans (excluding loans held-for-sale), at September 30, 2014.  Acquired loans, included in the allowance coverage ratios, were recorded at fair value and the remaining discount on these loans was approximately $22.1 million at December 31, 2014.  The coverage ratio of the allowance for loan losses to non-performing assets was 107.6% at December 31, 2014, compared with 103.2% at September 30, 2014.

Non-Performing Loans

At December 31, 2014, total non-performing loans were $37.3 million, or 1.12% of total gross loans, compared to $44.9 million, or 1.41% of total gross loans, at September 30, 2014.

The following table shows total non-performing loans by loan type:

Net Charge-offs/Recoveries

During the fourth quarter of 2014, the Company had total gross charge-offs of $6.3 million and recoveries of $1.8 million which resulted in total net charge-offs of $4.5 million for the fourth quarter of 2014, compared to net recoveries of $447,000 for the third quarter of 2014.  The gross charge-offs in the fourth quarter of 2014 primarily consisted of $2.7 million in charge-offs of commercial real estate loans that had previously been on non-accrual status and related to one borrower, and $1.3 million in charge-offs related to former Mirae Bank loans.

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Gross charge-offs and recoveries by loan type are reflected in the tables below:

Other measures of credit quality are shown in the following tables:

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CAPITAL RATIOS

As of December 31, 2014, all of the Company’s capital ratios remain in excess of “well capitalized” regulatory requirements as shown in the following table:

* “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.

CONFERENCE CALL

Management will host its quarterly conference call on January 27, 2015, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing 800-299-9630 (domestic) or 617-786-2904 (international) and providing passcode number 82609103.

ABOUT WILSHIRE BANCORP

Headquartered in Los Angeles, Wilshire Bancorp is the parent company of Wilshire Bank, which operates 33 branch offices in California, Texas, New Jersey and New York, and 6 loan production offices in Dallas, TX, Palisades Park, NJ, Atlanta, GA, Aurora, CO, Newark, CA, and Federal Way, WA, and is an SBA preferred lender nationwide. Wilshire 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.  For more information, please go to www.wilshirebank.com.

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. Undue reliance should not be placed on forward-looking statements, as they are subject to risks and uncertainties, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K and our other reports filed with or furnished to the Securities and Exchange Commission.  Specific factors that could cause future results to differ materially from historical performance and these forward-looking statements include, but are not limited to: (1) loan production and sales, (2) credit quality, (3) the ability to expand net interest margin, (4) the ability to continue to attract low-cost deposits, (5) success of expansion efforts, (6) competition in the marketplace, (7) political developments, war or other hostilities, (8) changes in the interest rate environment, (9) the ability of our borrowers to repay their loans, (10) the ability to maintain capital requirements and adequate sources of liquidity, (11) effects of or changes in accounting policies, (12) legislative or regulatory changes or actions, (13) the ability to attract and retain key personnel, (14) the ability to receive dividends from our subsidiaries, (15) the ability to secure confidential information through the use of computer systems and telecommunications networks, (16) weakening in the economy, specifically the real estate market, either nationally or in the states in which we do business, (17) the integration of our acquired businesses, and (18) general economic conditions. The information in this press release speaks only as of the date of this release and Wilshire Bancorp specifically disclaims any duty to update the information in this press release, expect as required by applicable law. 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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