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):

October 19, 2015

WILSHIRE BANCORP, INC.

(Exact name of registrant as specified in its charter)

3200 Wilshire Boulevard, Los Angeles,
California 90010

(Address of principal executive offices) (Zip Code)

(213) 387-3200

(Registrant’s telephone number, including area code)

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 October 19, 2015, Wilshire Bancorp, Inc. issued a press release announcing its results of operations and financial condition for the quarter ended September 30, 2015.  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 October 19, 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 $13.3 Million or

$0.17 per Share for Third Quarter 2015

LOS ANGELES, October 19, 2015 - Wilshire Bancorp, Inc. (NASDAQ: WIBC) (the “Company”), the holding company for Wilshire Bank (the “Bank”), today reported net income of $13.3 million, or $0.17 per diluted common share, for the quarter ended September 30, 2015. This compares to net income of $15.1 million, or $0.19 per diluted common share, for the same period of the prior year, and net income of $15.6 million, or $0.20 per diluted common share, for the second quarter of 2015.

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, “We had a very strong quarter of business development with more than $400 million in total loan production.  We continue to make progress in building our commercial lending platform, which resulted in more than $100 million in C&I loan production in the third quarter, the highest quarterly production in our history.  We are also seeing increasing production from our residential mortgage lending business, which originated over $100 million in loans during the third quarter.  The progress we are making in building our C&I and residential mortgage lending businesses is helping us to achieve the more diversified loan portfolio that we are targeting.

“We believe we are well positioned to generate earnings growth going forward.  We have excellent liquidity with a loan-to-deposit ratio below our historical range.  As we redeploy our excess liquidity into higher-yielding loans and securities, we expect to see an expansion in our net interest margin, which should help drive a higher level of revenue and earnings in future quarters,” said Mr. Yoo.

Q3 2015 Summary

·            Net income totaled $13.3 million, or $0.17 per diluted common share, for the third quarter of 2015

·            Total net revenue of $47.0 million for the third quarter of 2015, an increase of 1.3% from the third quarter of 2014

·            Return on average assets of 1.16% and return on average equity of 10.12% for the third quarter of 2015

·            Net interest margin of 3.49% for the third quarter of 2015, a decrease from 3.59% for the second quarter of 2015

·            Loans receivable (net of deferred fees and costs) totaled $3.63 billion at September 30, 2015, an increase of 15% from $3.16 billion at September 30, 2014

·            Total deposits were $3.94 billion at September 30, 2015, an increase of 24% from $3.19 billion at September 30, 2014

·            Demand deposits totaled $1.07 billion at September 30, 2015, an increase of 17% from $914.7 million at September 30, 2014

·            Provision for losses on loans and loan commitments of $700,000 primarily related to loan growth and an increase in unfunded commitments

STATEMENT OF OPERATIONS

Net interest income before provision for losses on loans and loan commitments totaled $37.5 million for the third quarter of 2015, an increase of 1.9% from $36.8 million for the third quarter of 2014, and unchanged from the second quarter of 2015. Relative to the third quarter of 2014, net interest income continues to be positively impacted by an increase in average total loans.

Net interest margin was 3.49% for the third quarter of 2015, compared to 3.59% for the second quarter of 2015, and 4.26% for the third quarter of 2014. The decline in net interest margin from the second to third quarter of 2015 was primarily attributable to the growth of demand deposits and money market accounts which resulted in an increase in cash and cash equivalents.

Loan yields were 4.76% for the third quarter of 2015, compared to 4.78% for the second quarter of 2015, and 5.12% for the third quarter of 2014.

The total cost of deposits was 0.62% for the third quarter of 2015, compared to 0.61% for the second quarter of 2015, and 0.53% for the third quarter of 2014. Compared to the second quarter of 2015, the increase in the cost of deposits for the third quarter of 2015 was primarily due to an increase in rates paid on time deposit accounts.

Non-Interest Income

Total non-interest income was $9.5 million for the third quarter of 2015, compared to $11.3 million for the second quarter of 2015, and $9.6 million for the third quarter of 2014.

The Company recognized $3.2 million in net gain on sales of loans during the third quarter of 2015, compared to $4.2 million for the second quarter of 2015, and $2.4 million for the third quarter of 2014.  The decline in net gain on sale of loans for the third quarter of 2015, compared to the previous quarter, was primarily due to a decline in gains from the sale of non-performing loans.  Net gain on sale of loans in the third quarter of 2015 consisted of $2.0 million in gains on sales of SBA loans and $1.2 million in gains on sales of residential mortgage loans.

Other non-interest income totaled $3.3 million for the third quarter of 2015, compared to $4.0 million for the second quarter of 2015, and $3.9 million for the third quarter of 2014. The decrease in other non-interest income from the second to third quarter of 2015 was primarily due to a decline in FHLB dividend income.

Non-Interest Expense

Total non-interest expense was $25.8 million for the third quarter of 2015, compared with $24.7 million for the second quarter of 2015, and $23.2 million for the third quarter of 2014. The increase in non-interest expense from the prior quarter was primarily due to an increase in other non-interest expenses that resulted largely from a reduction in net gain on sale of OREO during the third quarter of 2015.

Total salaries and employee benefits expense was $13.6 million for the third quarter of 2015, compared with $14.2 million for the second quarter of 2015, and $12.3 million for the third quarter of 2014. The decrease in salaries and employee benefits for the third quarter of 2015 compared to the second quarter of 2015 was largely due to a decline in stock compensation expenses which were higher during the second quarter of 2015 due to stock awards that were issued during second quarter.

The Company’s operating efficiency ratio was 54.80% for the third quarter of 2015, compared with 50.56% for the second quarter of 2015, and 50.12% for the third quarter of 2014.

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BALANCE SHEET

Total loans receivable (net of deferred fees and costs) were $3.63 billion at September 30, 2015, compared to $3.52 billion at June 30, 2015. The increase in loans during the third quarter of 2015 was spread across all of the Company’s major portfolios aside from consumer loans.

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

(Dollars In Thousands) (Unaudited)

* 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:

(Dollars In Thousands) (Unaudited)

* Warehouse lines of credit are reported as commercial and industrial loans on the consolidated balance sheet.

Originations for the third quarter of 2015 totaled $416.2 million, compared to $292.9 million for the second quarter of 2015, and $399.2 million for the third quarter of 2014. The increase in loan origination for the three months ended September 30, 2015, compared to the previous quarter, was due to an increase in real estate, commercial and industrial, and residential loans.

Total SBA loans held-for-sale at the end of the third quarter of 2015 were $2.2 million, compared to $5.9 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 $3.94 billion at September 30, 2015, compared with $3.90 billion at June 30, 2015. The increase in total deposits was attributable to growth in lower-cost deposit categories.

CREDIT QUALITY

During the third quarter of 2015, the Company continued to experience general stability in asset quality and a low level of charge-offs.  However, due primarily to growth in the loan portfolio, the Company recorded a provision for losses on loans and loan commitments of $700,000 during the third quarter of 2015.

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The allowance for loan losses totaled $50.1 million, or 1.38% of gross loans (excluding loans held-for-sale), at September 30, 2015, compared to $48.8 million, also 1.38% of gross loans (excluding loans held-for-sale), at June 30, 2015. The coverage ratio of the allowance for loan losses to non-performing assets was 130.2% at September 30, 2015, compared with 130.5% at June 30, 2015.

Non-Performing Loans

At September 30, 2015, total non-performing loans were $27.2 million, or 0.74% of total gross loans, compared to $30.9 million, or 0.87% of total gross loans, at June 30, 2015.

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

NON-PERFORMING LOANS

(Dollars In Thousands) (Unaudited)

(Net of SBA Guaranty Portions)

Net Charge-offs/Recoveries

During the third quarter of 2015, the Company had total gross charge-offs of $1.9 million, and recoveries of $2.7 million, which resulted in net recoveries of $795,000, compared to net recoveries of $651,000 for the second quarter of 2015.

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

GROSS LOAN CHARGE-OFFS

(Dollars In Thousands) (Unaudited)

LOAN RECOVERIES

(Dollars In Thousands) (Unaudited)

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

DELINQUENT  LOANS -  By Days Past Due

(Dollars In Thousands) (Unaudited)

(Net of SBA Guaranty Portions)

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TROUBLED DEBT RESTRUCTURED LOANS (“TDR”)

(Dollars In Thousands) (Unaudited)

(Net of SBA Guaranty Portions)

LOAN CLASSIFICATIONS

(Dollars In Thousands) (Unaudited)

(Net of SBA Guaranty Portions)

CAPITAL RATIOS

As of September 30, 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)

*     “Tangible Common Equity” and “Tangible Assets” are Non-GAAP measures of financial performance. Please refer to the “Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures” table at the end of this press release for a reconciliation of Tangible Common Equity to Shareholders’ Equity and Tangible Assets to Total Assets.

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CONFERENCE CALL

Management will host its quarterly conference call on October 20, 2015, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing toll-free 866-515-2912 (domestic) or 617-399-5126 (international) and providing passcode number 83383026.

ABOUT WILSHIRE BANCORP

Headquartered in Los Angeles, Wilshire Bancorp is the parent company of Wilshire Bank, which operates 35 branch offices in California, Texas, Alabama, Georgia, New Jersey, and New York. Wilshire Bancorp also operates six loan production offices of which four are utilized primarily for the origination of loans under the Small Business Administration lending program located in California, Colorado, Georgia, and Washington, and two that are utilized primarily for the origination of residential mortgage loans located in California. Wilshire Bank is a community bank with a focus on commercial real estate lending and general commercial banking, with its primary 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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CONSOLIDATED BALANCE SHEET

(Dollars In Thousands) (Unaudited)

(continued)

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CONSOLIDATED STATEMENT OF OPERATIONS

(Dollars In Thousands, Except Per Share Data) (Unaudited)

(continued)

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CONSOLIDATED STATEMENT OF OPERATIONS

(Dollars In Thousands, Except Per Share Data) (Unaudited)