Wilshire Bancorp, Inc. (Nasdaq:WIBC) (the "Company"), the holding
company for Wilshire Bank (the "Bank"), today reported net income
of $18.6 million, or $0.24 per diluted common share, for the
quarter ended March 31, 2015. This compares to net income of $13.1
million, or $0.17 per diluted common share, for the same period of
the prior year, and net income of $16.1 million, or $0.20 per
diluted common share, for the fourth quarter of 2014.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp,
said, "Our first quarter performance was driven by strong,
well-diversified loan production, stable expense levels and solid
credit quality. We had $398 million in loan originations in the
quarter, with strong contributions coming from our commercial real
estate, commercial, SBA, and warehouse lending businesses. We also
had strong deposit inflows that resulted in non-interest bearing
demand deposits increasing by $82 million during the quarter, with
more than half of the increase coming from new deposit
relationships.
"During the first quarter, we made excellent progress on two key
strategic initiatives: building our residential mortgage lending
business with the origination platform we acquired from Bank of
Manhattan and expanding our ability to develop commercial banking
relationships in the Southeastern United States with the opening of
a new branch in LaGrange, Georgia. We believe these initiatives
will increase our production of residential mortgage and commercial
and industrial loans, and help us build a stronger and more
diversified franchise," said Mr. Yoo.
Q1 2015 Summary
- Net income totaled $18.6 million, or $0.24 per diluted
common share, for the first quarter of 2015
- Total net revenue of $51.8 million for the first
quarter of 2015, an increase of 12.3% from the first quarter of
2014
- Return on average assets of 1.75% and return on average
equity of 14.89% for the first quarter of 2015
- Net interest margin of 3.69% for the first quarter of
2015, a decrease from 4.00% for the fourth quarter of
2014
- Loans receivable (net of deferred fees and costs)
totaled $3.51 billion at March 31, 2015, an increase of 22% from
$2.87 billion at March 31, 2014
- Demand deposits totaled $997.8 million at March 31,
2015, an increase of 9% from $915.4 million at December 31,
2014
- Total deposits were $3.64 billion at March 31, 2015, an
increase of 24% from $2.92 billion at March 31, 2014
- Continued stability in asset quality resulted in no
provision for losses on loans and loan commitments for the first
quarter of 2015
- Acquired Bank of Manhattan's Mortgage Lending Division
during the first quarter of 2015
STATEMENT OF OPERATIONS
Net interest income before provision for losses on loans and
loan commitments totaled $36.5 million for the first quarter of
2015, an increase of 3.7% from $35.2 million for the first quarter
of 2014, and a decrease of 2.6% from $37.5 million for the fourth
quarter of 2014. The decrease from the prior quarter is primarily
attributable to a decline in net interest margin. Discount
accretion income from loans acquired from Saehan Bancorp and
BankAsiana totaled $2.0 million for the first quarter of 2015,
compared to $2.4 million for the fourth quarter of 2014.
Net interest margin was 3.69% for the first quarter of 2015,
compared to 4.00% for the fourth quarter of 2014, and 4.22% for the
first quarter of 2014. Loan yields were 4.78% for the first quarter
of 2015, compared with 5.09% for the fourth quarter of 2014, and
5.15% for the first quarter of 2014. Compared to the fourth quarter
of 2014, the decrease in net interest margin and loan yield is
attributable to a decline in discount accretion income on acquired
loans, an increase in lower-yielding warehouse lines of credit, and
a reduction in average loan yields as rates on new loan
originations are lower than the rates on loans that are maturing or
being paid down.
During the first quarter of 2015, the Company had a number of
investment securities that matured or were called during the
quarter which resulted in a significant increase in lower yielding
average fed funds sold and other balances. Although these funds
will be deployed back into higher yielding investments and loans,
the increase in fed funds sold and other balances during the first
quarter of 2015 was another contributing factor to the decline in
on our net interest margin compared to the previous quarters.
The total cost of deposits was 0.58% for the first quarter of
2015, unchanged from the fourth quarter of 2014 and was 0.51% for
the first quarter of 2014. Compared to the first quarter of 2014,
the increase in the cost of deposits for the first quarter of 2015
was primarily due to an increase in rates paid on time deposit
accounts.
Non-Interest Income
Total non-interest income was $15.3 million for the first
quarter of 2015, compared to $11.0 million for the first quarter of
2014, and $9.9 million for the fourth quarter of 2014.
The Company recognized $6.8 million in net gain on sales of
loans during the first quarter of 2015, which consisted of a $4.3
million gain on the sale of a non-accrual loan, $2.2 million of
gains on sales of Small Business Administration ("SBA") loans, and
$261,000 of gains on sales of residential mortgage loans. Net gain
on sale of loans for the fourth quarter of 2014 was $3.5 million
and consisted primarily of gains from the sale of SBA loans. During
the first quarter of 2015, the Company sold $24.0 million in SBA
loans, compared with $35.5 million sold during the fourth quarter
of 2014.
Other non-interest income totaled $5.4 million for the first
quarter of 2015, compared to $3.5 million for the first quarter of
2014, and $3.3 million for the fourth quarter of 2014. Other
non-interest income in the first quarter of 2015 was positively
impacted by a $1.6 million increase in the fair value of servicing
assets and a $495,000 fair-value adjustment on mortgage banking
derivatives.
Non-Interest Expense
Total non-interest expense was $22.9 million for the first
quarter of 2015, compared with $26.3 million for the first quarter
of 2014, and $23.5 million for the fourth quarter of 2014. The
decrease in non-interest expense from the prior quarter was
primarily due to a decline in other non-interest expenses.
Total salaries and employee benefits expense was $12.7 million
for the first quarter of 2015, compared with $12.7 million for the
first quarter of 2014, and $12.4 million for the fourth quarter of
2014.
Other non-interest expense for the first quarter of 2015 totaled
$5.8 million, compared to $6.0 million for the first quarter of
2014, and $6.7 million for the fourth quarter of 2014. The decrease
in other non-interest expense from the fourth quarter of 2014 was
attributable to a reduction in SBA referral fees, OREO expenses,
and consulting fees.
The Company's operating efficiency ratio was 44.3% for the first
quarter of 2015, compared with 56.9% for the first quarter of 2014,
and 49.5% for the fourth quarter of 2014.
BALANCE SHEET
Total loans receivable (net of deferred fees and costs) were
$3.51 billion at March 31, 2015, compared to $3.31 billion at
December 31, 2014. The increase in loans during the first quarter
of 2015 was primarily driven by growth in real estate secured and
commercial & industrial loans, particularly an increase in
warehouse lines of credit.
The following table shows total loans receivable, loans
held-for-sale, and total loans by loan type:
|
Quarter Ended |
(Dollars In Thousands) (Unaudited) |
March 31, 2015 |
December 31, 2014 |
September 30, 2014 |
June 30, 2014 |
March 31, 2014 |
|
|
|
|
|
|
Construction |
$ 26,117 |
$ 21,248 |
$ 40,062 |
$ 43,292 |
$ 42,124 |
Real Estate Secured |
2,701,800 |
2,655,251 |
2,593,242 |
2,481,801 |
2,395,487 |
Commercial &
Industrial |
769,438 |
610,762 |
515,831 |
431,758 |
417,956 |
Consumer |
15,465 |
21,036 |
12,810 |
13,044 |
16,072 |
Total Loans Receivable * |
3,512,820 |
3,308,297 |
3,161,945 |
2,969,895 |
2,871,639 |
Held-For-Sale Loans |
10,204 |
11,783 |
16,236 |
6,207 |
27,791 |
Total Loans * |
$ 3,523,024 |
$ 3,320,080 |
$ 3,178,181 |
$ 2,976,102 |
$ 2,899,430 |
|
|
|
|
|
|
* Total loans
receivable and total loans are net of deferred fees and costs as
shown in the consolidated balance sheet presentation |
The following table shows quarterly loan originations:
|
Quarter Ended |
(Dollars In Thousands) (Unaudited) |
March 31, 2015 |
December 31, 2014 |
September 30, 2014 |
June 30, 2014 |
March 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
Real Estate Secured |
$ 138,145 |
35% |
$ 184,477 |
56% |
$ 191,272 |
48% |
$ 170,042 |
60% |
$ 96,266 |
49% |
Commercial &
Industrial |
59,837 |
15% |
73,194 |
22% |
89,166 |
22% |
31,058 |
11% |
36,619 |
18% |
Consumer |
1,640 |
0% |
3,385 |
1% |
6,560 |
2% |
1,580 |
1% |
632 |
0% |
SBA |
31,718 |
8% |
34,747 |
11% |
41,373 |
10% |
37,004 |
13% |
35,305 |
18% |
Residential Mortgage |
11,357 |
3% |
8,632 |
4% |
20,791 |
5% |
9,325 |
3% |
19,063 |
10% |
Warehouse Lines of Credit* |
155,000 |
39% |
23,000 |
6% |
50,000 |
13% |
33,000 |
12% |
10,000 |
5% |
Total Loan Originations |
$ 397,697 |
100% |
$ 327,435 |
100% |
$ 399,162 |
100% |
$ 282,009 |
100% |
$ 197,885 |
100% |
|
|
|
|
|
|
|
|
|
|
|
* Warehouse lines
of credit are reported as commercial and industrial loans on the
consolidated balance sheet. |
Originations for the first quarter of 2015 totaled $397.7
million, compared to $327.4 million for the fourth quarter of 2014,
and $197.9 million for the first quarter of 2014.
Total SBA loans held-for-sale at the end of the first quarter of
2015 were $7.7 million, compared to $11.1 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 $3.64 billion at March 31, 2015, compared
with $3.40 billion at December 31, 2014. The increase in total
deposits was primarily attributable to growth in non-interest
bearing demand deposits and money market deposits.
CREDIT QUALITY
During the first quarter of 2015, the Company continued to
experience general stability in asset quality and a 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 first
quarter of 2015. The allowance for loan losses totaled $48.2
million, or 1.37% of gross loans (excluding loans held-for-sale),
at March 31, 2015, compared to $48.6 million, or 1.47% of gross
loans (excluding loans held-for-sale), at December 31, 2014.
Acquired loans, included in the allowance coverage ratios, were
recorded at fair value and the remaining discount on these loans
was approximately $19.9 million at March 31, 2015. The coverage
ratio of the allowance for loan losses to non-performing assets was
120.63% at March 31, 2015, compared with 107.6% at December 31,
2014.
Non-Performing Loans
At March 31, 2015, total non-performing loans were $32.5
million, or 0.92% of total gross loans, compared to $37.3 million,
or 1.12% of total gross loans, at December 31, 2014.
The following table shows total non-performing loans by loan
type:
NON-PERFORMING LOANS |
Quarter Ended |
(Dollars In Thousands) (Unaudited) |
Mar 31, 2015 |
Dec 31, 2014 |
Sep 30, 2014 |
Jun 30, 2014 |
Mar 31, 2014 |
(Net of SBA Guaranty Portions) |
|
|
|
|
|
Real Estate Secured |
$ 25,329 |
$ 29,547 |
$ 37,205 |
$ 35,585 |
$ 35,988 |
Commercial &
Industrial |
7,193 |
7,718 |
7,699 |
6,769 |
7,121 |
Consumer |
-- |
-- |
1 |
4 |
-- |
Total Non-Performing Loans |
$ 32,522 |
$ 37,265 |
$ 44,905 |
$ 42,358 |
$ 43,109 |
Net Charge-offs/Recoveries
During the first quarter of 2015, the Company had total gross
charge-offs of $1.3 million and recoveries of $870,000, which
resulted in total net charge-offs of $454,000 for the first quarter
of 2015, compared to net charge-offs of $4.5 million for the fourth
quarter of 2014.
Gross charge-offs and recoveries by loan type are reflected in
the tables below:
GROSS LOAN CHARGE-OFFS |
Quarter Ended |
(Dollars In Thousands) (Unaudited) |
Mar 31, 2015 |
Dec 31, 2014 |
Sep 30, 2014 |
Jun 30, 2014 |
Mar 31, 2014 |
|
|
|
|
|
|
Real Estate Secured |
$ 325 |
$ 5,461 |
$ 1,161 |
$ 782 |
$ 672 |
Commercial &
Industrial |
999 |
852 |
614 |
1,021 |
964 |
Consumer |
-- |
-- |
-- |
-- |
1 |
Total Loan Charge-Offs |
$ 1,324 |
$ 6,313 |
$ 1,775 |
$ 1,803 |
$ 1,637 |
|
|
|
|
|
|
LOAN
RECOVERIES |
Quarter Ended |
(Dollars In Thousands) (Unaudited) |
Mar 31, 2015 |
Dec 31, 2014 |
Sep 30, 2014 |
Jun 30, 2014 |
Mar 31, 2014 |
|
|
|
|
|
|
Real Estate Secured |
$ 193 |
$ 199 |
$ 1,688 |
$ 586 |
$ 1,028 |
Commercial &
Industrial |
667 |
1,620 |
534 |
408 |
510 |
Consumer |
10 |
2 |
-- |
14 |
-- |
Total Loan Recoveries |
$ 870 |
$ 1,821 |
$ 2,222 |
$ 1,008 |
$ 1,538 |
Other measures of credit quality are shown in the following
tables:
DELINQUENT LOANS
- By Days Past Due |
Quarter Ended |
(Dollars In Thousands) (Unaudited) |
Mar 31, 2015 |
Dec 31, 2014 |
Sep 30, 2014 |
Jun 30, 2014 |
Mar 31, 2014 |
(Net of SBA Guaranty Portions) |
|
|
|
|
|
30 - 59 Days Past Due |
$ 7,375 |
$ 5,165 |
$ 4,137 |
$ 4,556 |
$ 5,756 |
60 - 89 Days Past Due |
421 |
1,820 |
4,002 |
2,992 |
1,526 |
90 Days, and still
accruing |
-- |
-- |
-- |
-- |
-- |
Total Delinquent Loans |
$ 7,796 |
$ 6,985 |
$ 8,139 |
$ 7,548 |
$ 7,282 |
|
|
TROUBLED DEBT RESTRUCTURED LOANS
("TDR") |
Quarter Ended |
(Dollars In Thousands) (Unaudited) |
Mar 31, 2015 |
Dec 31, 2014 |
Sep 30, 2014 |
Jun 30, 2014 |
Mar 31, 2014 |
(Net of SBA Guaranty Portions) |
|
|
|
|
|
Real Estate Secured |
$ 28,612 |
$ 25,096 |
$ 31,313 |
$ 33,349 |
$ 34,565 |
Commercial &
Industrial |
11,682 |
12,014 |
11,425 |
5,542 |
5,563 |
Total TDR Loans |
$ 40,294 |
$ 37,110 |
$ 42,738 |
$ 38,891 |
$ 40,128 |
|
|
|
|
|
|
LOAN CLASSIFICATIONS |
Quarter Ended |
(Dollars In Thousands) (Unaudited) |
Mar 31, 2015 |
Dec 31, 2014 |
Sep 30, 2014 |
Jun 30, 2014 |
Mar 31, 2014 |
(Net of SBA Guaranty Portions) |
|
|
|
|
|
Special Mention |
$ 81,049 |
$ 76,906 |
$ 62,929 |
$ 88,382 |
$ 101,627 |
Substandard |
89,402 |
82,305 |
94,854 |
110,462 |
127,996 |
Doubtful |
9,822 |
11,952 |
15,291 |
18,040 |
19,931 |
Total Criticized and Classified
Loans |
$ 180,273 |
$ 171,163 |
$ 173,074 |
$ 216,884 |
$ 249,554 |
|
|
|
|
|
|
Total Classified Loans |
$ 99,224 |
$ 94,257 |
$ 110,145 |
$ 128,502 |
$ 147,927 |
|
|
|
|
|
|
CAPITAL RATIOS
As of March 31, 2015, all of the Company's capital ratios remain
in excess of "well capitalized" regulatory requirements as shown in
the following table:
(Dollars In Thousands, Except Per Share
Info) |
March 31, 2015 |
Well Capitalized Regulatory
Requirements |
Total Excess Above Well Capitalized
Requirements |
Tier 1 Leverage Capital Ratio |
11.86% |
5.00% |
$ 286,364 |
Tier 1 Common Equity Risk-Based Capital
Ratio |
11.58% |
6.50% |
187,824 |
Tier 1 Risk-Based Capital Ratio |
13.38% |
8.00% |
199,216 |
Total Risk-Based Capital Ratio |
14.64% |
10.00% |
171,532 |
Tangible Common Equity To Tangible Assets
* |
10.00% |
N/A |
N/A |
Tangible Common Equity Per Common Share
* |
$ 5.54 |
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. |
CONFERENCE CALL
Management will host its quarterly conference call on April 21,
2015, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are
invited to participate in the call by dialing 866-318-8618
(domestic) or 617-399-5137 (international) and providing passcode
number 89927477.
ABOUT WILSHIRE BANCORP
Headquartered in Los Angeles, Wilshire Bancorp is the parent
company of Wilshire Bank, which operates 34 branch offices in
California, Texas, Georgia, New Jersey and New York, and 4 loan
production offices in 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.
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE
SHEET |
|
|
|
|
|
(Dollars In Thousands) (Unaudited) |
March 31, |
December 31, |
Three Months |
March 31, |
Twelve Months |
|
2015 |
2014 |
% Change |
2014 |
% Change |
ASSETS: |
|
|
|
|
|
Cash and due from banks |
$ 353,438 |
$ 233,699 |
51% |
$ 160,999 |
120% |
Federal funds sold and other
cash equivalents |
164 |
254 |
-35% |
7,301 |
-98% |
Total Cash and Cash
Equivalents |
353,602 |
233,953 |
51% |
168,300 |
110% |
|
|
|
|
|
|
Deposits held in other financial
institutions |
8,000 |
8,000 |
0% |
21,006 |
-62% |
|
|
|
|
|
|
Investment securities available
for sale |
329,343 |
388,367 |
-15% |
342,438 |
-4% |
Investment securities held to
maturity |
25 |
26 |
-4% |
32 |
-22% |
Total Investment
Securities |
329,368 |
388,393 |
-15% |
342,470 |
-4% |
|
|
|
|
|
|
Total Loans
Held-For-Sale |
10,204 |
11,783 |
-13% |
27,791 |
-63% |
|
|
|
|
|
|
Real estate
construction |
26,117 |
21,248 |
23% |
42,124 |
-38% |
Residential real
estate |
171,117 |
183,665 |
-7% |
169,810 |
1% |
Commercial real
estate |
2,530,683 |
2,471,586 |
2% |
2,225,677 |
14% |
Commercial and
industrial |
769,438 |
610,762 |
26% |
417,956 |
84% |
Consumer |
15,465 |
21,036 |
-26% |
16,072 |
-4% |
Total loans receivable, net of deferred fees
and costs |
3,512,820 |
3,308,297 |
6% |
2,871,639 |
22% |
Allowance for loan losses |
(48,170) |
(48,624) |
-1% |
(53,464) |
-10% |
Loans Receivable, Net of Allowance
for Loan Losses |
3,464,650 |
3,259,673 |
6% |
2,818,175 |
23% |
|
|
|
|
|
|
Accrued interest
receivable |
8,581 |
8,792 |
-2% |
8,293 |
3% |
Due from customers on
acceptances |
6,472 |
5,611 |
15% |
889 |
628% |
Other real estate owned |
7,411 |
7,922 |
-6% |
8,969 |
-17% |
Premises and equipment |
14,058 |
13,881 |
1% |
13,313 |
6% |
Federal home loan bank (FHLB)
stock, at cost |
16,539 |
16,539 |
0% |
15,983 |
3% |
Cash surrender value of life
insurance |
23,470 |
23,330 |
1% |
22,661 |
4% |
Investment in affordable
housing partnerships |
43,134 |
44,077 |
-2% |
42,459 |
2% |
Deferred income taxes |
16,646 |
22,271 |
-25% |
34,391 |
-52% |
Servicing assets |
19,813 |
18,031 |
10% |
17,536 |
13% |
Goodwill |
67,473 |
67,473 |
0% |
67,528 |
0% |
FDIC indemnification asset |
-- |
-- |
0% |
2,169 |
-100% |
Other assets |
23,857 |
25,740 |
-7% |
22,533 |
6% |
TOTAL ASSETS |
$ 4,413,278 |
$ 4,155,469 |
6% |
$ 3,634,466 |
21% |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY: |
|
|
|
|
|
Non-interest bearing demand
deposits |
$ 997,803 |
$ 915,413 |
9% |
$ 869,598 |
15% |
Savings and interest
checking |
161,234 |
160,717 |
0% |
156,587 |
3% |
Money market deposits |
886,092 |
765,892 |
16% |
799,299 |
11% |
Time deposits in denomination
of $100,000 or more |
1,322,743 |
1,291,844 |
2% |
860,697 |
54% |
Other time deposits |
267,294 |
267,393 |
0% |
237,028 |
13% |
Total Deposits |
3,635,166 |
3,401,259 |
7% |
2,923,209 |
24% |
|
|
|
|
|
|
FHLB borrowings |
150,000 |
150,000 |
0% |
150,292 |
0% |
Acceptance outstanding |
6,472 |
5,611 |
15% |
889 |
628% |
Junior subordinated
debentures |
71,837 |
71,779 |
0% |
71,610 |
0% |
Accrued interest payable |
2,406 |
2,228 |
8% |
2,462 |
-2% |
Other liabilities |
41,818 |
35,181 |
19% |
34,429 |
21% |
Total Liabilities |
3,907,699 |
3,666,058 |
7% |
3,182,891 |
23% |
|
|
|
|
|
|
Common stock |
232,207 |
232,001 |
0% |
230,979 |
1% |
Retained earnings |
267,660 |
252,957 |
6% |
218,806 |
22% |
Accumulated other comprehensive
income |
5,712 |
4,453 |
28% |
1,790 |
219% |
Total Shareholders'
Equity |
505,579 |
489,411 |
3% |
451,575 |
12% |
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ 4,413,278 |
$ 4,155,469 |
6% |
$ 3,634,466 |
21% |
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF
OPERATIONS |
|
|
|
|
|
(Dollars In Thousands, Except Per Share Data)
(Unaudited) |
|
|
|
|
|
|
Quarter Ended |
Three Mths |
Quarter Ended |
Twelve Mths |
|
March 31, 2015 |
December 31, 2014 |
% Change |
March 31, 2014 |
% Change |
|
|
|
|
|
|
INTEREST INCOME |
|
|
|
|
|
Interest and fees on loans |
$ 40,088 |
$ 40,709 |
-2% |
$ 37,101 |
8% |
Interest on investment
securities |
1,968 |
2,053 |
-4% |
2,101 |
-6% |
Interest on federal funds sold
and others |
192 |
155 |
24% |
151 |
27% |
Total Interest Income |
42,248 |
42,917 |
-2% |
39,353 |
7% |
|
|
|
|
|
|
INTEREST EXPENSE |
|
|
|
|
|
Deposits |
5,097 |
4,783 |
7% |
3,676 |
39% |
FHLB advances and other
borrowings |
660 |
667 |
-1% |
504 |
31% |
Total Interest Expense |
5,757 |
5,450 |
6% |
4,180 |
38% |
|
|
|
|
|
|
Net interest income before
provision for losses on loans and loan commitments |
36,491 |
37,467 |
-3% |
35,173 |
4% |
Provision for losses on loans
and loan commitments |
-- |
-- |
0% |
-- |
0% |
|
|
|
|
|
|
Net interest income after
provision for losses on loans and loan commitments |
36,491 |
37,467 |
-3% |
35,173 |
4% |
|
|
|
|
|
|
NONINTEREST INCOME |
|
|
|
|
|
Service charges on
deposits |
3,107 |
3,105 |
0% |
3,146 |
-1% |
Gain on sales of loans,
net |
6,806 |
3,528 |
93% |
4,329 |
57% |
Gain on sale/call of investment
securities |
-- |
-- |
0% |
-- |
0% |
Other |
5,354 |
3,280 |
63% |
3,511 |
52% |
Total Noninterest
Income |
15,267 |
9,913 |
54% |
10,986 |
39% |
|
|
|
|
|
|
NONINTEREST EXPENSES |
|
|
|
|
|
Salaries and employee
benefits |
12,665 |
12,359 |
2% |
12,655 |
0% |
Occupancy and
equipment |
3,373 |
3,385 |
0% |
3,309 |
2% |
Data processing |
1,042 |
1,030 |
1% |
963 |
8% |
Merger related costs |
-- |
-- |
0% |
3,364 |
-100% |
Other |
5,829 |
6,694 |
-13% |
5,966 |
-2% |
Total Noninterest
Expenses |
22,909 |
23,468 |
-2% |
26,257 |
-13% |
|
|
|
|
|
|
Income before income taxes |
28,849 |
23,912 |
21% |
19,902 |
45% |
Income taxes provision |
10,230 |
7,809 |
31% |
6,789 |
51% |
NET INCOME |
$ 18,619 |
$ 16,103 |
16% |
$ 13,113 |
42% |
|
|
|
|
|
|
PER COMMON SHARE
INFORMATION: |
|
|
|
|
|
Basic income per common
share |
$ 0.24 |
$ 0.21 |
16% |
$ 0.17 |
42% |
Diluted income per common
share |
$ 0.24 |
$ 0.20 |
16% |
$ 0.17 |
42% |
|
|
|
|
|
|
WEIGHTED-AVERAGE COMMON SHARES
OUTSTANDING: |
|
|
|
|
|
Basic |
78,326,505 |
78,315,686 |
|
78,115,779 |
|
Diluted |
78,655,365 |
78,628,965 |
|
78,496,106 |
|
|
|
|
|
SUMMARY OF FINANCIAL
DATA |
|
(Dollars In Thousands, Except Per Share Data)
(Unaudited) |
|
|
Quarter Ended |
|
AVERAGE BALANCES |
March 31, 2015 |
|
December 31, 2014 |
|
March 31, 2014 |
|
Average Assets |
$ 4,255,625 |
|
$ 4,049,930 |
|
$ 3,631,268 |
|
Average Equity |
500,097 |
|
485,482 |
|
447,188 |
|
Average Net Loans |
3,352,433 |
|
3,200,538 |
|
2,881,650 |
|
Average Deposits |
3,490,282 |
|
3,292,557 |
|
2,878,950 |
|
Average Time Deposits of $100,000 or
more |
1,297,961 |
|
1,211,738 |
|
874,039 |
|
Average FHLB & Other Borrowings |
150,655 |
|
150,000 |
|
193,413 |
|
Average Interest Earning Assets |
3,976,435 |
|
3,764,271 |
|
3,346,954 |
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
PROFITABILITY |
March 31, 2015 |
|
December 31, 2014 |
|
March 31, 2014 |
|
Annualized Return on Average Assets |
1.75% |
|
1.59% |
|
1.44% |
|
Annualized Return on Average Equity |
14.89% |
|
13.27% |
|
11.73% |
|
Efficiency Ratio |
44.26% |
|
49.53% |
|
56.88% |
|
Annualized Operating Expense/Average
Assets |
2.15% |
|
2.32% |
|
2.89% |
|
Annualized Net Interest Margin |
3.69% |
|
4.00% |
|
4.22% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Of |
|
March 31, 2015 |
December 31,
2014 |
March 31, 2014 |
DEPOSIT COMPOSITION |
Percent of Total |
Rate |
Percent of Total |
Rate |
Percent of Total |
Rate |
Noninterest Bearing Demand Deposits |
27.4% |
0.00% |
26.9% |
0.00% |
29.7% |
0.00% |
Savings & Interest Checking |
4.4% |
1.31% |
4.7% |
1.33% |
5.4% |
1.28% |
Money Market Deposits |
24.4% |
0.67% |
22.5% |
0.71% |
27.3% |
0.66% |
Time Deposits of $100,000 or More |
36.4% |
0.80% |
38.0% |
0.79% |
29.4% |
0.68% |
Other Time Deposits |
7.4% |
0.86% |
7.9% |
0.84% |
8.1% |
0.67% |
Total Deposits |
100.0% |
0.58% |
100.0% |
0.58% |
100.0% |
0.51% |
|
|
|
|
|
|
|
|
As Of |
|
CAPITAL RATIOS |
March 31, 2015 |
|
December 31, 2014 |
|
March 31, 2014 |
|
Tier 1 Leverage Ratio |
11.86% |
|
12.11% |
|
12.50% |
|
Tier 1 Common Equity Risk-Based Capital
Ratio |
11.58% |
|
12.09% |
|
12.60% |
|
Tier 1 Risk-Based Capital Ratio |
13.38% |
|
14.13% |
|
14.92% |
|
Total Risk-Based Capital Ratio |
14.64% |
|
15.38% |
|
16.17% |
|
Total Shareholders' Equity |
$ 505,579 |
|
$ 489,411 |
|
$ 451,575 |
|
Book Value Per Common Share |
$ 6.45 |
|
$ 6.25 |
|
$ 5.77 |
|
Tangible Common Equity Per Common Share
* |
$ 5.54 |
|
$ 5.33 |
|
$ 4.84 |
|
Tangible Common Equity to Tangible Assets
** |
10.00% |
|
10.23% |
|
10.64% |
|
|
* Tangible common
equity excludes goodwill, other intangible assets |
** Tangible assets
excludes goodwill and intangible assets |
|
|
|
|
|
|
|
|
|
|
|
|
ALLOWANCE FOR LOAN
LOSSES |
|
|
|
|
|
(Dollars In Thousands) (Unaudited) |
|
|
|
|
|
|
Quarter Ended |
|
March 31, 2015 |
December 31, 2014 |
September 30, 2014 |
June 30, 2014 |
March 31, 2014 |
|
|
|
|
|
|
Balance at Beginning of Period |
$ 48,624 |
$ 53,116 |
$ 52,669 |
$ 53,464 |
$ 53,563 |
Provision for Losses on Loans |
-- |
-- |
-- |
-- |
-- |
Recoveries on Loans Previously
Charged-off |
870 |
1,821 |
2,222 |
1,008 |
1,538 |
Gross Loan Charge-offs |
(1,324) |
(6,313) |
(1,775) |
(1,803) |
(1,637) |
Balance at End of Period |
$ 48,170 |
$ 48,624 |
$ 53,116 |
$ 52,669 |
$ 53,464 |
|
|
|
|
|
|
Net Loan Charge-offs/Average Net Loans |
0.01% |
0.14% |
-0.01% |
0.03% |
0.00% |
Charge-offs/Average Total Loans |
0.04% |
0.20% |
0.06% |
0.06% |
0.06% |
Allowance for Loan Losses/Gross Loans* |
1.37% |
1.47% |
1.67% |
1.77% |
1.86% |
Allowance for Loan Losses/Non-accrual
Loans |
148.12% |
130.48% |
118.29% |
124.34% |
124.02% |
Allowance for Loan Losses/Non-performing
Loans |
148.12% |
130.48% |
118.29% |
124.34% |
124.02% |
Allowance for Loan Losses/Non-performing
Assets |
120,63% |
107.61% |
103.20% |
107.41% |
102.66% |
Allowance for Loan Losses/Classified
Loans |
48.55% |
51.59% |
48.22% |
34.01% |
34.01% |
|
|
|
|
|
|
* Excluding held-for-sale loans |
|
|
|
|
|
|
|
|
|
|
|
NON-PERFORMING ASSETS |
|
|
|
|
|
(Dollars In Thousands, Net of SBA
Guaranty) |
Quarter Ended |
(Unaudited) |
March 31, 2015 |
December 31, 2014 |
September 30, 2014 |
June 30, 2014 |
March 31, 2014 |
|
|
|
|
|
|
Non-accrual Loans |
$ 32,522 |
$ 37,265 |
$ 44,905 |
$ 42,358 |
$ 43,109 |
Loans 90 days or more past due and still
accruing |
-- |
-- |
-- |
-- |
-- |
Total Non-performing Loans |
32,522 |
37,265 |
44,905 |
42,358 |
43,109 |
|
|
|
|
|
|
Total OREO |
7,411 |
7,922 |
6,565 |
6,676 |
8,969 |
Total Non-performing Assets |
$ 39,933 |
$ 45,187 |
$ 51,470 |
$ 49,034 |
$ 52,078 |
|
|
|
|
|
|
Total Non-performing Loans/Gross Loans |
0.92% |
1.12% |
1.41% |
1.42% |
1.48% |
Total Non-performing Assets/Total Assets |
0.90% |
1.09% |
1.31% |
1.33% |
1.43% |
|
|
|
|
|
|
|
|
|
|
ALLOWANCE FOR OFF-BALANCE SHEET
ITEMS |
|
|
|
(Dollars In Thousands) (Unaudited) |
|
|
|
|
Quarter Ended |
|
March 31, 2015 |
December 31, 2014 |
March 31, 2014 |
|
|
|
|
Balance at beginning of period |
$ 1,023 |
$ 1,023 |
$ 1,023 |
Provision for losses on off-balance sheet
items |
-- |
-- |
-- |
Balance at end of period |
$ 1,023 |
$ 1,023 |
$ 1,023 |
|
|
|
|
|
|
WILSHIRE BANCORP, INC.
AND SUBSIDIARIES |
AVERAGE BALANCES,
AVERAGE YIELDS EARNED AND AVERAGE RATES PAID |
(Dollars In Thousands)
(Unaudited) |
|
For the Quarter
Ended |
|
March 31,
2015 |
December 31,
2014 |
March 31,
2014 |
|
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 |
$ 2,732,436 |
$ 32,565 |
4.77% |
$ 2,666,855 |
$ 33,339 |
5.00% |
$ 2,447,610 |
$ 31,008 |
5.07% |
Commercial Loans |
616,848 |
6,282 |
4.07% |
530,293 |
5,717 |
4.31% |
430,076 |
4,919 |
4.58% |
Consumer Loans |
13,141 |
116 |
3.53% |
13,162 |
129 |
3.92% |
11,873 |
118 |
3.98% |
Total Gross Loans |
3,362,425 |
38,963 |
4.64% |
3,210,310 |
39,185 |
4.88% |
2,889,559 |
36,045 |
4.99% |
Deferred Fees and Costs Loan
Fees |
(9,992) |
1,125 |
|
(9,772) |
1,524 |
|
(7,909) |
1,056 |
|
Total Loans
* |
3,352,433 |
40,088 |
4.78% |
3,200,538 |
40,709 |
5.09% |
2,881,650 |
37,101 |
5.15% |
|
|
|
|
|
|
|
|
|
|
INVESTMENT SECURITIES
AND |
|
|
|
|
|
|
|
|
|
OTHER INTEREST-EARNING
ASSETS: |
|
|
|
|
|
|
|
|
|
Investment Securities** |
359,302 |
1,968 |
2.38% |
366,229 |
2,053 |
2.43% |
349,701 |
2,101 |
2.60% |
Deposits Held In Other
Institutions |
8,000 |
32 |
1.60% |
8,402 |
34 |
1.62% |
21,019 |
69 |
1.31% |
Federal Funds Sold &
Others |
256,700 |
160 |
0.25% |
189,102 |
121 |
0.26% |
94,584 |
82 |
0.35% |
Total Investment
Securities and |
|
|
|
|
|
|
|
|
|
Other Earning
Assets |
624,002 |
2,160 |
1.49% |
563,733 |
2,208 |
1.69% |
465,304 |
2,252 |
2.09% |
|
|
|
|
|
|
|
|
|
|
TOTAL INTEREST-EARNING
ASSETS |
$ 3,976,435 |
$ 42,248 |
4.27% |
$ 3,764,271 |
$ 42,917 |
4.58% |
$ 3,346,954 |
$ 39,353 |
4.72% |
|
|
|
|
|
|
|
|
|
|
Total Non-Interest Earning
Assets |
279,190 |
|
|
285,659 |
|
|
284,314 |
|
|
TOTAL ASSETS |
$ 4,255,625 |
|
|
$ 4,049,930 |
|
|
$ 3,631,268 |
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST BEARING
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST-BEARING
DEPOSITS: |
|
|
|
|
|
|
|
|
|
Money Market |
$ 844,576 |
$ 1,406 |
0.67% |
$ 748,031 |
$ 1,320 |
0.71% |
$ 784,219 |
$ 1,301 |
0.66% |
NOW |
29,230 |
17 |
0.23% |
31,364 |
17 |
0.22% |
32,019 |
15 |
0.19% |
Savings |
129,239 |
502 |
1.55% |
127,610 |
510 |
1.60% |
120,908 |
476 |
1.58% |
Time Deposits of $100,000 or
More |
1,297,961 |
2,603 |
0.80% |
1,211,738 |
2,387 |
0.79% |
874,039 |
1,485 |
0.68% |
Other Time Deposits |
265,626 |
569 |
0.86% |
262,777 |
549 |
0.84% |
236,826 |
399 |
0.67% |
Total Interest Bearing
Deposits |
2,566,632 |
5,097 |
0.79% |
2,381,520 |
4,783 |
0.80% |
2,048,011 |
3,676 |
0.72% |
|
|
|
|
|
|
|
|
|
|
BORROWINGS: |
|
|
|
|
|
|
|
|
|
FHLB Advances and Other
Borrowings |
150,655 |
232 |
0.62% |
150,000 |
235 |
0.63% |
193,413 |
74 |
0.15% |
Junior Subordinated
Debentures |
71,799 |
428 |
2.38% |
71,742 |
432 |
2.41% |
71,573 |
430 |
2.40% |
Total
Borrowings |
222,454 |
660 |
1.19% |
221,742 |
667 |
1.20% |
264,986 |
504 |
0.76% |
|
|
|
|
|
|
|
|
|
|
TOTAL INTEREST BEARING
LIABILITIES |
$ 2,789,086 |
$ 5,757 |
0.83% |
$ 2,603,262 |
$ 5,450 |
0.84% |
$ 2,312,997 |
$ 4,180 |
0.72% |
|
|
|
|
|
|
|
|
|
|
Non-Interest Bearing
Deposits |
923,650 |
|
|
911,037 |
|
|
830,939 |
|
|
Other Liabilities |
42,792 |
|
|
50,149 |
|
|
40,144 |
|
|
Shareholders' Equity |
500,097 |
|
|
485,482 |
|
|
447,188 |
|
|
TOTAL LIABILITIES AND
EQUITY |
$ 4,255,625 |
|
|
$ 4,049,930 |
|
|
$ 3,631,268 |
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
$ 36,491 |
|
|
$ 37,467 |
|
|
$ 35,173 |
|
. |
|
|
|
|
|
|
|
|
|
NET INTEREST SPREAD |
|
|
3.44% |
|
|
3.74% |
|
|
4.00% |
|
|
|
|
|
|
|
|
|
|
NET INTEREST MARGIN |
|
|
3.69% |
|
|
4.00% |
|
|
4.22% |
|
|
|
|
|
|
|
|
|
|
* Allowance for
loan losses excluded from average total loans and earning
assets |
** Tax equivalent
ratios for investment securities |
|
|
RECONCILIATION OF GAAP
FINANCIAL MEASURES TO NON-GAAP FINANCIAL
MEASURES: |
|
TANGIBLE COMMON EQUITY
AND TANGIBLE ASSETS * |
(Dollars In Thousands, Except
Share Data) (Unaudited) |
|
Quarter Ended |
|
March 31, 2015 |
December 31, 2014 |
March 31, 2014 |
|
|
|
|
Total shareholders' equity |
$ 505,579 |
$ 489,411 |
$ 451,575 |
Goodwill and other intangible
assets, net |
(71,385) |
(71,628) |
(72,480) |
Tangible common equity |
$ 434,194 |
$ 417,783 |
$ 379,095 |
|
|
|
|
Total assets |
$ 4,413,278 |
$ 4,155,469 |
$ 3,634,466 |
Goodwill and other intangible
assets, net |
(71,385) |
(71,628) |
(72,480) |
Tangible assets |
$ 4,341,893 |
$ 4,083,841 |
$ 3,561,986 |
|
|
|
|
Common shares outstanding |
78,329,458 |
78,322,462 |
78,247,026 |
|
|
|
|
|
* Tangible Common Equity,
Tangible Assets, and Net Interest Margin and Loan Yields Excluding
The Effect of Acquisition Accounting Adjustments 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. |
CONTACT: Alex Ko, EVP & CFO, (213) 427-6560
www.wilshirebank.com
Wilshire Bancorp, Inc. (MM) (NASDAQ:WIBC)
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