WIBC Wilshire Bancorp, Inc. (MM)

Wilshire Bancorp, Inc. (NASDAQ:WIBC) (the “Company”), the holding company for Wilshire Bank (the “Bank”), today reported net income of $13.9 million, or $0.18 per diluted common share, for the quarter ended December 31, 2015. This compares to net income of $16.1 million, or $0.20 per diluted common share, for the same period of the prior year, and net income of $13.3 million, or $0.17 per diluted common share, for the third quarter of 2015. Excluding $994,000 in non-deductible merger-related costs related to the BBCN Bancorp Inc. (“BBCN”) merger of equals, net income was $14.9 million, or $0.19 per diluted common share, for the fourth quarter of 2015.*

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, “We finished 2015 with excellent momentum, generating more than $500 million in loan originations, a historical high. During the fourth quarter, we received strong contributions from most of our major lending areas including commercial real estate, commercial and industrial, and Small Business Administration (“SBA”). With our strong loan production in the second half of the year, we were able to increase our total loan portfolio by 16% in 2015, while experiencing positive trends in asset quality.

“We were also able to effectively redeploy a significant portion of our excess liquidity during the fourth quarter by funding our strong loan production, investing in our securities portfolio, and allowing certain higher cost deposits to run-off. As a result, our net interest margin increased seven basis points during the fourth quarter to 3.56%.

“We are very excited about our pending merger of equals with BBCN Bancorp and we look forward to the opportunity to better serve our markets as part of the premier Korean-American bank in the United States,” said Mr. Yoo.

Q4 2015 Summary

• Net income totaled $13.9 million, or $0.18 per diluted common share, for the fourth quarter of 2015
• Return on average assets of 1.18% and return on average equity of 10.43% for the fourth quarter of 2015
• Net interest margin of 3.56% for the fourth quarter of 2015, an increase from 3.49% for the third quarter of 2015
• Improvement in credit quality from the third of 2015 to fourth quarter of 2015 with a decline in non-accrual, delinquencies, TDR, and classified loans
• Net recoveries increased from $795,000 for the third quarter of 2015, to $2.3 million for the fourth quarter of 2015
• Loan originations of $502.9 million during the fourth quarter of 2015 compared to $327.4 million for the fourth quarter of 2014
• Loans receivable (net of deferred fees and costs) totaled $3.82 billion at December 31, 2015, an increase of 15% from $3.31 billion at December 31, 2014
• Total deposits were $3.84 billion at December 31, 2015, an increase of 13% from $3.40 billion at December 31, 2014  
• Demand deposits totaled $1.09 billion at December 31, 2015, an increase of 19% from $915.4 million at December 31, 2014
• Merger-related costs of $994,000 related to the pending merger of equals with BBCN

* “Net income and earnings per share before merger-related costs” 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 Net income and earnings per share before merger-related costs to Net income and earnings per share.

STATEMENT OF OPERATIONS

Net interest income before provision for losses on loans and loan commitments totaled $39.4 million for the fourth quarter of 2015, an increase of 5.2% from $37.5 million for both the fourth quarter of 2014 and the third quarter of 2015. Relative to the fourth quarter of 2014 and third quarter of 2015, net interest income was positively impacted by an increase in average total loans and investments securities.

Net interest margin was 3.56% for the fourth quarter of 2015, compared to 3.49% for the third quarter of 2015, and 4.00% for the fourth quarter of 2014. The increase in net interest margin from the third to fourth quarter of 2015 was attributable to an increase in average loans and the deployment of lower yielding excess cash.

Loan yields were 4.80% for the fourth quarter of 2015, compared to 4.76% for the third quarter of 2015, and 5.09% for the fourth quarter of 2014.

The total cost of deposits was 0.61% for the fourth quarter of 2015, compared to 0.62% for the third quarter of 2015, and 0.58% for the fourth quarter of 2014. Compared to the third quarter of 2015, the decrease in the cost of deposits for the fourth quarter of 2015 was primarily due to the run-off of higher cost other time deposits.

Non-Interest Income

Total non-interest income was $9.5 million for the fourth quarter of 2015, compared to $9.5 million for the third quarter of 2015, and $9.9 million for the fourth quarter of 2014.

The Company recognized $2.9 million in net gain on sales of loans during the fourth quarter of 2015, compared to $3.2 million for the third quarter of 2015, and $3.5 million for the fourth quarter of 2014. Net gain on sale of loans in the fourth quarter of 2015 consisted of $2.0 million in gains on sales of SBA loans, $898,000 in net gains on sales of residential mortgage loans, and $62,000 in gains from the sale of non-performing loans. The decline in net gain on sale of loans for the fourth quarter of 2015, compared to the previous quarter, was primarily due to a decline in sale of residential mortgage loans, while the decline from the fourth quarter of 2014 was due to a reduction in SBA loan sales in addition to a decline in average premium rates.

Other non-interest income totaled $3.7 million for the fourth quarter of 2015, compared to $3.3 million for both the third quarter of 2015 and fourth quarter of 2014. The increase in other non-interest income from the third to fourth quarter of 2015 was primarily due to an increase in loan servicing and other miscellaneous loan related income.

Non-Interest Expense

Total non-interest expense was $26.6 million for the fourth quarter of 2015, compared with $25.8 million for the third quarter of 2015, and $23.5 million for the fourth quarter of 2014. The increase in non-interest expense from the prior quarter was primarily due to $994,000 in merger-related costs related to the planned merger of equals with BBCN, consisting mostly of financial advisor fees and legal expenses. Merger-related costs also contributed to an approximate 1.60% increase in tax rate for the fourth quarter of 2015, as these expenses were not tax deductible.

Total salaries and employee benefits expense was $13.7 million for the fourth quarter of 2015, compared to $13.6 million for the third quarter of 2015, and $12.4 million for the fourth quarter of 2014. The increase in salaries and employee benefits for the fourth quarter of 2015 compared to the fourth quarter of 2014 was due to an overall increase in total employees, primarily to support the expansion of the residential mortgage lending business.

The Company’s operating efficiency ratio was 54.3% for the fourth quarter of 2015, compared with 54.8% for the third quarter of 2015, and 49.5% for the fourth quarter of 2014.

BALANCE SHEET

During the fourth quarter of 2015, the Company was able to reduce its cash and cash equivalents balance from $488.3 million at September 30, 2015, to $118.2 million at December 31, 2015. Excess cash was deployed in the fourth quarter of 2015 through the purchase of investment securities and funding loan growth. Higher cost time deposits and brokered money market accounts were also run-off during the fourth quarter of 2015, which helped to reduce cash equivalents to levels at year end.

Total loans receivable (net of deferred fees and costs) were $3.82 billion at December 31, 2015, compared to $3.63 billion at September 30, 2015. The increase in loans during the fourth quarter of 2015 was primarily attributable to growth in the real estate secured portfolio.

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

	Quarter Ended
(Dollars In Thousands) (Unaudited)	December 31, 2015				September 30, 2015				June 30, 2015				March 31, 2015				December 31, 2014
Construction	$	19,541			$	18,146			$	16,050			$	26,117			$	21,248
Real Estate Secured		2,992,824				2,810,420				2,723,458				2,701,800				2,655,251
Commercial & Industrial		792,243				789,422				765,655				769,438				610,762
Consumer		15,096				13,284				14,622				15,465				21,036
Total Loans Receivable *		3,819,704				3,631,272				3,519,785				3,512,820				3,308,297
Loans Held-For-Sale		25,223				13,316				25,269				10,204				11,783
Total Loans *	$	3,844,927			$	3,644,588			$	3,545,054			$	3,523,024			$	3,320,080

  * 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)	December 31, 2015								September 30, 2015								June 30, 2015								March 31, 2015								December 31, 2014
Real Estate Secured	$	273,613				54	%		$	176,605				43	%		$	121,066				41	%		$	138,145				35	%		$	184,477					56	%
Commercial & Industrial		94,128				19	%			107,952				26	%			46,438				16	%			59,837				15	%			73,194					22	%
Consumer		55				0	%			360				0	%			124				0	%			1,640				0	%			3,385					1	%
SBA		37,897				8	%			21,871				5	%			25,648				9	%			31,718				8	%			34,747					11	%
Residential Mortgage		95,159				19	%			102,383				25	%			89,652				31	%			11,357				3	%			8,632					4	%
Warehouse Lines of Credit*		2,000				0	%			7,000				1	%			10,000				3	%			155,000				39	%			23,000					6	%
Total Loan Originations	$	502,852				100	%		$	416,171				100	%		$	292,928				100	%		$	397,697				100	%		$	327,435					100	%

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

Originations for the fourth quarter of 2015 totaled $502.9 million, compared to $416.2 million for the third quarter of 2015, and $327.4 million for the fourth quarter of 2014. The increase in loan origination for the three months ended December 31, 2015, compared to the previous quarter, was due to an increase in real estate secured and SBA loan originations. 

Total SBA loans held-for-sale at the end of the fourth quarter of 2015 were $5.5 million, compared to $2.2 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. Residential mortgage loans held-for-sale at the end of the fourth quarter of 2015 were $19.7 million, compared to $9.6 million at the end of the third quarter of 2015.

Total deposits were $3.84 billion at December 31, 2015, compared with $3.94 billion at September 30, 2015. The decrease in total deposits was attributable to the strategic run-off of higher cost time deposits and a reduction in brokered money market deposits.

CREDIT QUALITY

During the fourth quarter of 2015, the Company experienced general improvement in asset quality, continued low levels of charge-offs, and significant loan recoveries. As a result, the Company determined that no provision for losses on loans and loan commitments was required for the fourth quarter of 2015 in spite of the loan growth experienced during the quarter.

The allowance for loan losses totaled $52.4 million, or 1.37% of gross loans (excluding loans held-for-sale), at December 31, 2015, compared to $50.1 million, or 1.38% of gross loans (excluding loans held-for-sale), at September 30, 2015. The coverage ratio of the allowance for loan losses to non-performing assets was 169.74% at December 31, 2015, compared with 130.23% at September 30, 2015.

Non-Performing Loans

At December 31, 2015, total non-performing loans were $21.7 million, or 0.56% of total gross loans, compared to $27.2 million, or 0.74% of total gross loans, at September 30, 2015.

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

NON-PERFORMING LOANS	Quarter Ended
(Dollars In Thousands) (Unaudited)	Dec 31, 2015				Sep 30, 2015				Jun 30, 2015				Mar 31, 2015				Dec 31, 2014
(Net of SBA Guaranty Portions)
Real Estate Secured	$	15,422			$	20,123			$	23,235			$	25,329			$	29,547
Commercial & Industrial		6,272				7,058				7,617				7,193				7,718
Total Non-Performing Loans	$	21,694			$	27,181			$	30,852			$	32,522			$	37,265

Net Charge-offs/Recoveries

During the fourth quarter of 2015, the Company had total gross charge-offs of $1.4 million, and recoveries of $3.7 million, which resulted in net recoveries of $2.3 million, compared to net recoveries of $795,000 for the third quarter of 2015.

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

GROSS LOAN CHARGE-OFFS	Quarter Ended
(Dollars In Thousands) (Unaudited)	Dec 31, 2015				Sep 30, 2015				Jun 30, 2015				Mar 31, 2015				Dec 31, 2014
Real Estate Secured	$	13			$	605			$	249			$	325			$	5,461
Commercial & Industrial		1,392				1,270				310				999				852
Total Loan Charge-Offs	$	1,405			$	1,875			$	559			$	1,324			$	6,313

LOAN RECOVERIES	Quarter Ended
(Dollars In Thousands) (Unaudited)	Dec 31, 2015				Sep 30, 2015				Jun 30, 2015				Mar 31, 2015				Dec 31, 2014
Real Estate Secured	$	3,242			$	1,867			$	970			$	193			$	199
Commercial & Industrial		452				803				240				667				1,620
Consumer		-				-				-				10				2
Total Loan Recoveries	$	3,694			$	2,670			$	1,210			$	870			$	1,821

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

DELINQUENT  LOANS -  By Days Past Due	Quarter Ended
(Dollars In Thousands) (Unaudited)	Dec 31, 2015				Sep 30, 2015				Jun 30, 2015				Mar 31, 2015				Dec 31, 2014
(Net of SBA Guaranty Portions)
30 - 59 Days Past Due	$	4,315			$	4,911			$	3,615			$	7,375			$	5,165
60 - 89  Days Past Due		1,643				1,143				7,576				421				1,820
90 Days, and still accruing		-				-				-				-				-
Total Delinquent Loans	$	5,958			$	6,054			$	11,191			$	7,796			$	6,985

            

TROUBLED DEBT RESTRUCTURED LOANS (“TDR”)	Quarter Ended
(Dollars In Thousands) (Unaudited)	Dec 31, 2015				Sep 30, 2015				Jun 30, 2015				Mar 31, 2015				Dec 31, 2014
(Net of SBA Guaranty Portions)
Real Estate Secured	$	22,311			$	24,188			$	29,424			$	28,612			$	25,096
Commercial & Industrial		15,681				16,578				13,469				11,682				12,014
Total TDR Loans	$	37,992			$	40,766			$	42,893			$	40,294			$	37,110

LOAN CLASSIFICATIONS	Quarter Ended
(Dollars In Thousands) (Unaudited)	Dec 31, 2015				Sep 30, 2015				Jun 30, 2015				Mar 31, 2015				Dec 31, 2014
(Net of SBA Guaranty Portions)
Special Mention	$	120,019			$	118,290			$	86,118			$	81,049			$	76,906
Substandard		80,310				82,000				96,666				89,402				82,305
Doubtful		41				2,182				5,301				9,822				11,952
Total Criticized and Classified Loans	$	200,370			$	202,472			$	188,085			$	180,273			$	171,163
Total Classified Loans	$	80,351			$	84,182			$	101,967			$	99,224			$	94,257

CAPITAL RATIOS

As of December 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)	December 31, 2015				Well CapitalizedRegulatory Requirements				Total Excess Above WellCapitalized Requirements
Tier 1 Leverage Capital Ratio		11.30	%			5.00	%		292,980
Tier 1 Common Equity Risk-Based Capital Ratio		11.23	%			6.50	%		193,241
Tier 1 Risk-Based Capital Ratio		12.86	%			8.00	%		198,690
Total Risk-Based Capital Ratio		14.11	%			10.00	%		168,112
Tangible Common Equity To Tangible Assets *		9.96	%			N/A			N/A
Tangible Common Equity Per Common Share *	$	5.88				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 January 26, 2016, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing toll-free 888-298-2143 (domestic) or 503-406-4050 (international) and providing passcode number 20355338.

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 markets encompassing the multi-ethnic populations of the Los Angeles, New York, New Jersey, and Texas. For more information, please go to www.wilshirebank.com.

ABOUT BBCN BANCORP, INC.

BBCN Bancorp, Inc. is the holding company of BBCN Bank, the largest Korean-American bank in the nation. Headquartered in Los Angeles and serving a diverse mix of customers mirroring its communities, BBCN operates 50 branches in California, New York, New Jersey, Illinois, Washington, and Virginia; eight loan production offices in Seattle, Denver, Dallas, Atlanta, Northern California, Annandale, Virginia, Portland, Oregon, and Fremont, California; and a representative office in Seoul, Korea.  BBCN specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and business lending, SBA lending and international trade financing. BBCN Bank is a California-chartered bank and its deposits are insured by the FDIC to the extent provided by law. BBCN is an Equal Opportunity Lender.

ADDITIONAL INFORMATION ABOUT MERGER AND WHERE TO FIND IT

In connection with the proposed merger, BBCN Bancorp, Inc. will file with the Securities and Exchange Commission (“SEC”) a Registration Statement on Form S-4 that will include a Joint Proxy Statement/Prospectus of Wilshire Bancorp, Inc. and BBCN Bancorp, as well as other relevant documents concerning the proposed transaction. Shareholders are urged to read the Registration Statement and the Joint Proxy Statement/Prospectus regarding the merger when it becomes available and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they will contain important information. You will be able to obtain a free copy of the Joint Proxy Statement/Prospectus, as well as other filings containing information about Wilshire Bancorp and BBCN Bancorp at the SEC’s Internet site (www.sec.gov). You will also be able to obtain these documents, free of charge, from BBCN at www.BBCNbank.com in the “Investor Relations” section under the “About” tab, or from Wilshire Bancorp at www.wilshirebank.com in the “Investor Relations” section under the “About Wilshire Bank” tab.

PARTICIPANTS IN SOLICITATION

Wilshire Bancorp and BBCN Bancorp and their respective directors, executive officers, management and employees may be deemed to be participants in the solicitation of proxies in respect of the merger. Information concerning Wilshire Bancorp’s participants is set forth in the proxy statement, dated April 9, 2015, for Wilshire Bancorp’s 2015 annual meeting of stockholders as filed with the SEC on Schedule 14A. Information concerning BBCN Bancorp’s participants is set forth in the proxy statement, dated May 1, 2015, and supplemental proxy materials, dated May 20, 2015, for BBCN Bancorp’s 2015 annual meeting of stockholders, as filed with the SEC on Schedules 14A. Additional information regarding the interests of participants of Wilshire Bancorp and BBCN Bancorp in the solicitation of proxies in respect of the merger will be included in the registration statement and joint proxy statement/prospectus to be filed with the SEC.

FORWARD-LOOKING STATEMENTS

This press release contains statements regarding the proposed transaction between Wilshire Bancorp and BBCN Bancorp. These statements are based on current expectations, estimates, forecasts and projections and management assumptions about the future performance of each of BBCN Bancorp, Wilshire Bancorp and the combined company, as well as the businesses and markets in which they do and are expected to operate. These statements constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “estimates,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans, “seeks,” and variations of such words and similar expressions are intended to identify such forward-looking statements which are not statements of historical fact. These forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to assess. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The closing of the proposed transaction is subject to regulatory approvals, the approval of the shareholders of both Wilshire Bancorp and BBCN Bancorp, and other customary closing conditions.  There is no assurance that such conditions will be met or that the proposed transaction will be consummated within the expected time frame, or at all.  If the transaction is consummated, factors that may cause actual outcomes to differ from what is expressed or forecasted in these forward-looking statements include, among things: difficulties and delays in integrating Wilshire Bancorp and BBCN Bancorp and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; deposit attrition, operating costs, customer loss and business disruption following the merger, including difficulties in maintaining relationships with employees, may be greater than expected; required governmental approvals of the merger may not be obtained on its proposed terms and schedule, or without regulatory constraints that may limit growth; competitive pressures among depository and other financial institutions may increase significantly and have an effect on revenues; the strength of the United States economy in general, and of the local economies in which the combined company will operate, may be different than expected, which could result in, among other things, a deterioration in credit quality or a reduced demand for credit and have a negative effect on the combined company’s loan portfolio and allowance for loan losses; changes in the U.S. legal and regulatory framework; and adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) which would negatively affect the combined company’s business and operating results.

For a more complete list and description of such risks and uncertainties, refer to Wilshire Bancorp’s Form 10-K for the year ended December 31, 2014, and BBCN Bancorp’s Form 10-K for the year ended December 31, 2014, as amended, as well as other filings made by Wilshire Bancorp and BBCN Bancorp with the SEC. Except as required under the U.S. federal securities laws and the rules and regulations of the SEC, Wilshire Bancorp and BBCN Bancorp disclaim any intention or obligation to update any forward-looking statements after the distribution of this press release, whether as a result of new information, future events, developments, changes in assumptions or otherwise.                                      

CONSOLIDATED BALANCE SHEET
(Dollars In Thousands) (Unaudited)		December 31,				September 30,				Three Months				December 31,				Twelve Months
			2015				2015			% Change					2014			% Change
ASSETS:
Cash and due from banks		$	118,089			$	487,655				-76	%		$	233,699				-49	%
Federal funds sold and other cash equivalents			104				601				-83	%			254				-59	%
Total Cash and Cash Equivalents			118,193				488,256				-76	%			233,953				-49	%
Deposits held in other financial institutions			-				7,500				-100	%			8,000				-100	%
Investment securities available for sale			535,524				386,679				38	%			388,367				38	%
Investment securities held to maturity			21				22				-5	%			26				-19	%
Total Investment Securities			535,545				386,701				38	%			388,393				38	%
Total Loans Held-For-Sale			25,223				13,316				89	%			11,783				114	%
Real estate construction			19,541				18,146				8	%			21,248				-8	%
Residential real estate			269,117				231,902				16	%			183,665				47	%
Commercial real estate			2,723,707				2,578,518				6	%			2,471,586				10	%
Commercial and industrial			792,243				789,422				0	%			610,762				30	%
Consumer			15,096				13,284				14	%			21,036				-28	%
Total loans receivable, net of deferred fees and costs			3,819,704				3,631,272				5	%			3,308,297				15	%
Allowance for loan losses			(52,405	)			(50,116	)			5	%			(48,624	)			8	%
Loans Receivable, Net of Allowance for Loan Losses			3,767,299				3,581,156				5	%			3,259,673				16	%
Accrued interest receivable			9,226				8,604				7	%			8,792				5	%
Due from customers on acceptances			7,250				8,940				-19	%			5,611				29	%
Other real estate owned			9,179				11,302				-19	%			7,922				16	%
Premises and equipment			16,096				14,328				12	%			13,881				16	%
Federal home loan bank (FHLB) stock, at cost			16,539				16,539				0	%			16,539				0	%
Cash surrender value of life insurance			25,028				24,879				1	%			23,330				7	%
Investment in affordable housing partnerships			48,867				45,435				8	%			44,077				11	%
Deferred income taxes			21,489				20,086				7	%			22,271				-4	%
Servicing assets			19,894				19,967				0	%			18,031				10	%
Goodwill			67,473				67,473				0	%			67,473				0	%
Other assets			26,167				25,919				1	%			25,740				2	%
TOTAL ASSETS		$	4,713,468			$	4,740,401				-1	%		$	4,155,469				13	%
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Non-interest bearing demand deposits		$	1,088,436			$	1,074,025				1	%		$	915,413				19	%
Savings and interest checking			172,038				161,267				7	%			160,717				7	%
Money market deposits			977,697				996,899				-2	%			765,892				28	%
Time deposits in denomination of $100,000 or more			1,349,440				1,440,340				-6	%			1,291,844				4	%
Other time deposits			252,265				269,909				-7	%			267,393				-6	%
Total Deposits			3,839,876				3,942,440				-3	%			3,401,259				13	%
FHLB borrowings			220,000				150,000				47	%			150,000				47	%
Acceptance outstanding			7,250				8,940				-19	%			5,611				29	%
Junior subordinated debentures			72,016				71,955				0	%			71,779				0	%
Accrued interest payable			2,105				2,326				-10	%			2,228				-6	%
Other liabilities			39,291				38,112				3	%			35,181				12	%
Total Liabilities			4,180,538				4,213,773				-1	%			3,666,058				14	%
Common stock			233,341				233,634				0	%			232,001				1	%
Retained earnings			296,303				287,072				3	%			252,957				17	%
Accumulated other comprehensive income			3,286				5,922				-45	%			4,453				-26	%
Total Shareholders’ Equity			532,930				526,628				1	%			489,411				9	%
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	4,713,468			$	4,740,401				-1	%		$	4,155,469				13	%

CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
		Quarter Ended								Three Mths						Quarter Ended					Twelve Mths
		December 31, 2015				September 30, 2015				% Change						December 31, 2014					% Change
INTEREST INCOME
Interest and fees on loans		$	43,797			$	41,877				5		%			$	40,709					8		%
Interest on investment securities			2,626				2,022				30		%				2,053					28		%
Interest on federal funds sold and others			228				303				-25		%				155					47		%
Total Interest Income			46,651				44,202				6		%				42,917					9		%
INTEREST EXPENSE
Deposits			5,945				6,039				-2		%				4,783					24		%
FHLB advances and other borrowings			1,287				704				83		%				667					93		%
Total Interest Expense			7,232				6,743				7		%				5,450					33		%
Net interest income before provision for losses on loans and loan commitments			39,419				37,459				5		%				37,467					5		%
Provision for losses on loans and loan commitments			-				700				-100		%				-					0		%
Net interest income after provision for losses on loans and loan commitments			39,419				36,759				7		%				37,467					5		%
NONINTEREST INCOME
Service charges on deposits			2,903				3,084				-6		%				3,105					-7		%
Net gain on sale of SBA loans			1,958				1,958				-0		%				3,465					-43		%
Net gain on sale of residential loans			898				1,204				-25		%				63					1325		%
Net gain on sale of other loans			62				-				0		%				-					0		%
Other			3,725				3,281				14		%				3,280					14		%
Total Noninterest Income			9,546				9,527				0		%				9,913					-4		%
NONINTEREST EXPENSES
Salaries and employee benefits			13,676				13,639				0		%				12,359					11		%
Occupancy and equipment			3,390				3,341				1		%				3,385					0		%
Data processing			1,156				1,119				3		%				1,030					12		%
Merger-related costs			994				-				0		%				-					0		%
Other			7,348				7,651				-4		%				6,694					10		%
Total Noninterest Expenses			26,564				25,750				3		%				23,468					13		%
Income before income taxes			22,401				20,536				9		%				23,912					-6		%
Income taxes provision			8,453				7,251				17		%				7,809					8		%
NET INCOME		$	13,948			$	13,285				5		%			$	16,103					-13		%
PER COMMON SHARE INFORMATION:
Basic income per common share		$	0.18			$	0.17				5		%			$	0.21					-14		%
Diluted income per common share		$	0.18			$	0.17				5		%			$	0.20					-14		%
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic			78,601,082				78,556,455										78,315,686
Diluted			78,942,078				78,907,223										78,628,965

       

CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
		Twelve Months Ended								Twelve Mths
		December 31, 2015				December 31, 2014				% Change
INTEREST INCOME
Interest and fees on loans		$	167,361			$	155,020				8		%
Interest on investment securities			8,545				8,195				4		%
Interest on federal funds sold and others			987				489				102		%
Total Interest Income			176,893				163,704				8		%
INTEREST EXPENSE
Deposits			22,742				15,926				43		%
FHLB advances and other borrowings			3,309				2,241				48		%
Total Interest Expense			26,051				18,167				43		%
Net interest income before provision for losses on loans and loan commitments			150,842				145,537				4		%
Provision for losses on loans and loan commitments			700				-				0		%
Net interest income after provision for losses on loans and loan commitments			150,142				145,537				3		%
NONINTEREST INCOME
Service charges on deposits			12,253				12,693				-3		%
Net gain on sale of SBA loans			8,792				14,366				-39		%
Net gain on sale of residential loans			3,290				366				799		%
Net gain on sale of other loans			4,988				230				2069		%
Other			16,331				13,586				20		%
Total Noninterest Income			45,654				41,241				11		%
NONINTEREST EXPENSES
Salaries and employee benefits			54,144				49,724				9		%
FDIC indemnification impairment			-				597				-100		%
Occupancy and equipment			13,300				13,371				-1		%
Data processing			4,406				3,998				10		%
Merger-related costs			994				3,577				-72		%
Other			27,046				26,247				3		%
Total Noninterest Expenses			99,890				97,514				2		%
Income before income taxes			95,906				89,264				7		%
Income taxes provision			34,501				30,255				14		%
NET INCOME		$	61,405			$	59,009				4		%
PER COMMON SHARE INFORMATION:
Basic income per common share		$	0.78			$	0.75				4		%
Diluted income per common share		$	0.78			$	0.75				4		%
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic			78,486,883				78,250,901
Diluted			78,818,556				78,591,374

         

SUMMARY OF FINANCIAL DATA
(Dollars In Thousands, Except Per Share Data) (Unaudited)
		Quarter Ended
AVERAGE BALANCES		December 31, 2015									September 30, 2015												December 31, 2014
Average Assets		$	4,728,510								$	4,592,052											$	4,049,930
Average Equity			534,938									524,962												485,482
Average Net Loans			3,650,672									3,519,441												3,200,538
Average Deposits			3,922,849									3,893,958												3,292,557
Average Time Deposits of $100,000 or more			1,407,298									1,448,501												1,211,738
Average FHLB & Other Borrowings			151,848									59,783												150,000
Average Interest Earning Assets			4,445,026									4,308,140												3,764,271
		Twelve Months Ended
AVERAGE BALANCES		December 31, 2015																					December 31, 2014
Average Assets		$	4,513,304																				$	3,762,400
Average Equity			518,447																					466,398
Average Net Loans			3,501,800																					3,017,409
Average Deposits			3,762,323																					3,021,392
Average Time Deposits of $100,000 or more			1,393,357																					970,481
Average FHLB & Other Borrowings			118,435																					160,950
Average Interest Earning Assets			4,233,219																					3,479,993
		Quarter Ended
PROFITABILITY		December 31, 2015									September 30, 2015												December 31, 2014
Annualized Return on Average Assets			1.18	%								1.16	%											1.59			%
Annualized Return on Average Equity			10.43	%								10.12	%											13.27			%
Efficiency Ratio			54.25	%								54.80	%											49.53			%
Annualized Operating Expense/Average Assets			2.25	%								2.24	%											2.32			%
Annualized Net Interest Margin			3.56	%								3.49	%											4.00			%
		Twelve Months Ended
PROFITABILITY		December 31, 2015																					December 31, 2014
Annualized Return on Average Assets			1.36	%																				1.57			%
Annualized Return on Average Equity			11.84	%																				12.65			%
Efficiency Ratio			50.84	%																				52.21			%
Annualized Operating Expense/Average Assets			2.21	%																				2.59			%
Annualized Net Interest Margin			3.58	%																				4.20			%
		As Of
DEPOSIT COMPOSITION		December 31, 2015				Cost of Funds					September 30, 2015					Cost of Funds							December 31, 2014						Cost of Funds
Noninterest Bearing Demand Deposits			28.3	%			0.00		%			27.2	%				0.00		%					26.9			%			0.00	%
Savings & Interest Checking			4.5	%			1.26		%			4.1	%				1.29		%					4.7			%			1.33	%
Money Market Deposits			25.5	%			0.69		%			25.3	%				0.68		%					22.5			%			0.71	%
Time Deposits of $100,000 or More			35.1	%			0.89		%			36.5	%				0.89		%					38.0			%			0.79	%
Other Time Deposits			6.6	%			0.91		%			6.9	%				0.92		%					7.9			%			0.84	%
Total Deposits			100.0	%			0.61		%			100.0	%				0.62		%					100.0			%			0.58	%
		As Of
CAPITAL RATIOS		December 31, 2015									September 30, 2015												December 31, 2014
Tier 1 Leverage Ratio			11.30	%								11.54	%											12.11			%
Tier 1 Common Equity Risk-Based Capital Ratio			11.23	%								11.47	%											N/A
Tier 1 Risk-Based Capital Ratio			12.86	%								13.23	%											14.13			%
Total Risk-Based Capital Ratio			14.11	%								14.48	%											15.38			%
Total Shareholders' Equity		$	532,930								$	526,628											$	489,411
Book Value Per Common Share		$	6.78								$	6.70											$	6.25
Tangible Common Equity Per Common Share *		$	5.88								$	5.80											$	5.33
Tangible Common Equity to Tangible Assets *			9.96	%								9.76	%											10.23			%

* Excludes goodwill and other intangible assets

ALLOWANCE FOR LOAN LOSSES
(Dollars In Thousands) (Unaudited)
		Quarter Ended
		December 31, 2015				September 30, 2015				June 30, 2015				March 31, 2015				December 31, 2014
Balance at beginning of period		$	50,116			$	48,821			$	48,170			$	48,624			$	53,116
Provision for losses on loans			-				500				-				-				-
Recoveries on loans previously charged-off			3,694				2,670				1,210				870				1,821
Gross loan charge-offs			(1,405	)			(1,875	)			(559	)			(1,324	)			(6,313		)
Balance at end of period		$	52,405			$	50,116			$	48,821			$	48,170			$	48,624
Net Loan Charge-offs / Average Net Loans			-0.06	%			-0.02	%			-0.02	%			0.01	%			0.14		%
Charge-offs / Average Total Loans			0.04	%			0.05	%			0.02	%			0.04	%			0.20		%
Allowance for Loan Losses / Gross Loans*			1.37	%			1.38	%			1.38	%			1.37	%			1.47		%
Allowance for Loan Losses / Non-accrual Loans			241.56	%			184.38	%			158.24	%			148.12	%			130.48		%
Allowance for Loan Losses / Non-performing Loans			241.56	%			184.38	%			158.24	%			148.12	%			130.48		%
Allowance for Loan Losses / Non-performing Assets			169.74	%			130.23	%			130.50	%			120.63	%			107.61		%
Allowance for Loan Losses / Classified Loans			65.22	%			59.53	%			47.88	%			48.55	%			51.59		%
* Excludes held-for-sale loans
NON-PERFORMING ASSETS
(Dollars In Thousands, Net of SBA Guaranty)		Quarter Ended
(Unaudited)		December 31, 2015				September 30, 2015				June 30, 2015				March 31, 2015				December 31, 2014
Non-accrual loans		$	21,694			$	27,181			$	30,852			$	32,522			$	37,265
Loans 90 days or more past due and still accruing			-				-				-				-				-
Total Non-performing Loans			21,694				27,181				30,852				32,522				37,265
Total OREO			9,179				11,302				6,559				7,411				7,922
Total Non-performing Assets		$	30,873			$	38,483			$	37,411			$	39,933			$	45,187
Total Non-performing Loans/Gross Loans			0.56	%			0.74	%			0.87	%			0.92	%			1.12		%
Total Non-performing Assets/Total Assets			0.65	%			0.81	%			0.81	%			0.90	%			1.09		%

ALLOWANCE FOR OFF-BALANCE SHEET ITEMS
(Dollars In Thousands) (Unaudited)		Quarter Ended
		December 31, 2015				September 30, 2015				December 31, 2014
Balance at beginning of period		$	1,261			$	1,061			$	1,061
Provision for losses on loan commitments			-				200				-
Balance at end of period		$	1,261			$	1,261			$	1,061

		Twelve Months Ended
		December 31, 2015				December 31, 2014
Balance at beginning of period		$	1,061			$	1,061
Provision for losses on loan commitments			200				-
Balance at end of period		$	1, 261			$	1,061

WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
	For the Quarter Ended
	December 31, 2015												September 30, 2015													December 31, 2014
	Average				Interest				Average				Average				Interest				Average						Average				Interest				Average
INTEREST EARNING ASSETS	Balance				Income/				Yield/				Balance				Income/				Yield/						Balance				Income/				Yield/
					Expense				Rate								Expense				Rate										Expense				Rate
LOANS:
Real Estate Loans	$	2,904,530			$	34,851				4.80	%		$	2,802,173			$	33,750				4.82		%			$	2,666,855			$	33,339				5.00	%
Commercial Loans		743,686				7,662				4.12	%			714,169				7,116				3.99		%				530,293				5,717				4.31	%
Consumer Loans		12,650				96				3.04	%			13,053				108				3.31		%				13,162				129				3.92	%
Total Gross Loans		3,660,866				42,609				4.66	%			3,529,395				40,974				4.64		%				3,210,310				39,185				4.88	%
Deferred Fees and Costs Loan Fees		(10,194	)			1,188								(9,954	)			903										(9,772	)			1,524
Total Loans *		3,650,672				43,797				4.80	%			3,519,441				41,877				4.76		%				3,200,538				40,709				5.09	%
INVESTMENT SECURITIES AND
OTHER INTEREST-EARNING ASSETS:
Investment Securities**		496,571				2,626				2.24	%			355,828				2,022				2.45		%				366,229				2,053				2.43	%
Deposits Held In Other Institutions		4,223				22				2.08	%			7,576				31				1.64		%				8,402				34				1.62	%
Federal Funds Sold & Others		293,560				206				0.28	%			425,295				272				0.26		%				189,102				121				0.26	%
Total Investment Securities and
Other Earning Assets		794,354				2,854				1.51	%			788,699				2,325				1.26		%				563,733				2,208				1.69	%
TOTAL INTEREST-EARNING ASSETS	$	4,445,026			$	46,651				4.21	%		$	4,308,140			$	44,202				4.12		%			$	3,764,271			$	42,917				4.58	%
Total Non-Interest Earning Assets		283,484												283,912														285,659
TOTAL ASSETS	$	4,728,510											$	4,592,052													$	4,049,930
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money Market	$	982,301			$	1,684				0.69	%		$	978,220			$	1,657				0.68		%			$	748,031			$	1,320				0.71	%
NOW		34,586				23				0.27	%			30,916				22				0.29		%				31,364				17				0.22	%
Savings		132,186				504				1.53	%			128,597				493				1.53		%				127,610				510				1.60	%
Time Deposits of $100,000 or More		1,407,298				3,132				0.89	%			1,448,501				3,235				0.89		%				1,211,738				2,387				0.79	%
Other Time Deposits		263,322				602				0.91	%			273,433				632				0.93		%				262,777				549				0.84	%
Total Interest Bearing Deposits		2,819,693				5,945				0.84	%			2,859,667				6,039				0.85		%				2,381,520				4,783				0.80	%
BORROWINGS:
FHLB Advances and Other Borrowings		151,848				828				2.18	%			59,783				257				1.72		%				150,000				235				0.63	%
Junior Subordinated Debentures		71,976				459				2.55	%			71,916				447				2.49		%				71,742				432				2.41	%
Total Borrowings		223,824				1,287				2.30	%			131,699				704				2.14		%				221,742				667				1.20	%
TOTAL INTEREST BEARING LIABILITIES	$	3,043,517			$	7,232				0.95	%		$	2,991,366			$	6,743				0.90		%			$	2,603,262			$	5,450				0.84	%
Non-Interest Bearing Deposits		1,103,156												1,034,291														911,037
Other Liabilities		46,899												41,433														50,149
Shareholders’ Equity		534,938												524,962														485,482
TOTAL LIABILITIES AND EQUITY	$	4,728,510											$	4,592,052													$	4,049,930
NET INTEREST INCOME					$	39,419											$	37,459													$	37,467
NET INTEREST SPREAD										3.26	%											3.22		%												3.74	%
NET INTEREST MARGIN										3.56	%											3.49		%												4.00	%

* Allowance for loan losses excluded from average total loans and earning assets               ** Tax equivalent ratios for investment securities

WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
	For the Twelve Months Ended
	December 31, 2015												December 31, 2014
	Average				Interest				Average				Average				Interest				Average
INTEREST EARNING ASSETS	Balance				Income/				Yield/				Balance				Income/				Yield/
					Expense				Rate								Expense				Rate
LOANS:
Real Estate Loans	$	2,798,746			$	134,576				4.81	%		$	2,549,100			$	128,969				5.06	%
Commercial Loans		699,713				28,007				4.00	%			464,911				21,136				4.55	%
Consumer Loans		13,384				443				3.31	%			12,308				490				3.98	%
Total Gross Loans		3,511,843				163,026				4.64	%			3,026,319				150,595				4.98	%
Deferred Fees and Costs Loan Fees		(10,043	)			4,335								(8,910	)			4,425
Total Loans *		3,501,800				167,361				4.78	%			3,017,409				155,020				5.14	%
INVESTMENT SECURITIES AND
OTHER INTEREST-EARNING ASSETS:
Investment Securities**		388,183				8,545				2.37	%			350,661				8,195				2.54	%
Deposits Held In Other Institutions		6,938				118				1.70	%			17,105				238				1.39	%
Federal Funds Sold & Others		336,298				869				0.26	%			94,818				251				0.27	%
Total Investment Securities and
Other Earning Assets		731,419				9,532				1.39	%			462,584				8,684				2.03	%
TOTAL INTEREST-EARNING ASSETS	$	4,233,219			$	176,893				4.19	%		$	3,479,993			$	163,704				4.72	%
Total Non-Interest Earning Assets		280,085												282,407
TOTAL ASSETS	$	4,513,304											$	3,762,400
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money Market	$	924,673			$	6,211				0.67	%		$	770,316			$	5,219				0.68	%
NOW		30,874				82				0.27	%			32,240				63				0.20	%
Savings		129,961				1,993				1.53	%			121,878				1,926				1.58	%
Time Deposits of $100,000 or More		1,393,357				12,031				0.86	%			970,481				6,849				0.71	%
Other Time Deposits		269,842				2,425				0.90	%			244,144				1,869				0.77	%
Total Interest Bearing Deposits		2,748,707				22,742				0.83	%			2,139,059				15,926				0.75	%
BORROWINGS:
FHLB Advances and Other Borrowings		118,435				1,537				1.30	%			160,950				522				0.32	%
Junior Subordinated Debentures		71,888				1,772				2.47	%			71,659				1,719				2.40	%
Total Borrowings		190,323				3,309				1.74	%			232,609				2,241				0.96	%
TOTAL INTEREST BEARING LIABILITIES	$	2,939,030			$	26,051				0.89	%		$	2,371,668			$	18,167				0.77	%
Non-Interest Bearing Deposits		1,013,616												882,333
Other Liabilities		42,211												42,001
Shareholders’ Equity		518,447												466,398
TOTAL LIABILITIES AND EQUITY	$	4,513,304											$	3,762,400
NET INTEREST INCOME					$	150,842											$	145,537
NET INTEREST SPREAD										3.31	%											3.96	%
NET INTEREST MARGIN										3.58	%											4.20	%

* 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
	December 31, 2015				September 30, 2015				December 31, 2014
Total shareholders’ equity	$	532,930			$	526,628			$	489,411
Goodwill and other intangible assets, net		(70,658	)			(70,894	)			(71,628	)
Tangible common equity	$	462,272			$	455,734			$	417,783
Total assets	$	4,713,468			$	4,740,401			$	4,155,469
Goodwill and other intangible assets, net		(70,658	)			(70,894	)			(71,628	)
Tangible assets	$	4,642,810			$	4,669,507			$	4,083,841
Common shares outstanding		78,608,717				78,598,147				78,322,462
NET INCOME AND EARNINGS PER SHARE BEFORE MERGER-RELATED COSTS
(Dollars In Thousands, Except Share and Per Share Data) (Unaudited)
	Quarter Ended
	December 31, 2015				September 30, 2015				December 31, 2014
Net income	$	13,948			$	13,285			$	16,103
Add Back – merger-related costs		994				-				-
Net change in tax provision expenses		-				-				-
Net income before merger-related costs	$	14,942			$	13,285			$	16,103
PER COMMON SHARE INFORMATION:
Basic income per common share	$	0.19			$	0.17			$	0.21
Diluted income per common share	$	0.19			$	0.17			$	0.20
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic		78,601,082				78,556,455				78,315,686
Diluted		78,942,078				78,907,223				78,628,965

* Tangible Common Equity, Tangible Assets, and Income Before Merger-Related Costs 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