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 $13.2 million, or $0.17 per diluted common share, for the quarter ended March 31, 2016. This compares to net income of $18.6 million, or $0.24 per diluted common share, for the same period of the prior year, and net income of $13.9 million, or $0.18 per diluted common share, for the fourth quarter of 2015.

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, “Following a very strong quarter of loan production to end 2015, we saw a lower level of loan demand across all of our business lines to start 2016. We believe this was primarily attributable to the first quarter typically being a seasonally slower period for loan production, as well as the impact of macroeconomic uncertainty that caused borrowers to be more cautious during the first two months of the year. However, market conditions appear to be improving, and we expect to see an increase in loan production as we move into the seasonally stronger periods of the year.

“The pending merger of equals with BBCN Bancorp is proceeding as anticipated and we are looking forward to the opportunities to provide our customers with a superior banking experience as part of the only Super Regional Korean-American bank in the United States,” said Mr. Yoo.

Q1 2016 Summary

• Net income totaled $13.2 million, or $0.17 per diluted common share, for the first quarter of 2016
• Return on average assets of 1.12% and return on average equity of 9.69% for the first quarter of 2016
• Net interest margin of 3.54% for the first quarter of 2016, compared to 3.56% for the fourth quarter of 2015
• Loan originations of $276.1 million during the first quarter of 2016, compared to $502.9 million for the fourth quarter of 2015
• Loans receivable (net of deferred fees and costs) totaled $3.79 billion at March 31, 2016, a decrease of 1% from $3.82 billion at December 31, 2015
• Total deposits were $3.85 billion at March 31, 2016, largely unchanged from $3.84 billion at December 31, 2015
• Demand deposits totaled $1.11 billion at March 31, 2016, an increase of 2% from $1.09 billion at December 31, 2015

STATEMENT OF OPERATIONS

Net interest income before provision for losses on loans and loan commitments totaled $38.9 million for the first quarter of 2016, a decrease of 1.3% from $39.4 million for the fourth quarter of 2015 and an increase of 6.6% from $36.5 million for the first quarter of 2015. Relative to the fourth quarter of 2015, net interest income was negatively impacted by a decrease in net interest margin. 

Net interest margin was 3.54% for the first quarter of 2016, compared to 3.56% for the fourth quarter of 2015, and 3.69% for the first quarter of 2015. The decrease in net interest margin compared to the fourth quarter of 2015 was primarily attributable to a decline in the average yield on loans. Net interest margin compression from the decline in loan yield was partially offset by the increase in net interest margin that resulted from a decrease in lower yielding fed funds sold and others.

Loan yields were 4.61% for the first quarter of 2016, compared to 4.80% for the fourth quarter of 2015, and 4.78% for the first quarter of 2015. The decline in loan yields for the first quarter of 2016, compared to the fourth quarter of 2015, was primarily due to the decline in yield on commercial real estate loans as loans were originated and renewed at rates lower than the existing portfolio.

The total cost of deposits was 0.62% for the first quarter of 2016, compared to 0.61% for the fourth quarter of 2015, and 0.58% for the first quarter of 2015. Compared to the fourth quarter of 2015, the increase in the total cost of deposits was primarily due to a slight increase in interest rates in money market and time deposits.

Non-Interest Income

Total non-interest income was $8.5 million for the first quarter of 2016, compared to $9.5 million for the fourth quarter of 2015, and $15.3 million for the first quarter of 2015.

The Company recognized $2.7 million in gain on sales of loans during the first quarter of 2016, compared to $2.9 million for the fourth quarter of 2015, and $6.8 million for the first quarter of 2015. Gain on sale of loans in the first quarter of 2016 consisted of $1.3 million in gains on sales of SBA loans, $830,000 in gains on sales of residential mortgage loans, and $545,000 in gains from the sale of other loans. The decline in gain on sale of loans for the first quarter of 2016, compared to the previous quarter, was primarily due to a decline in sale of SBA loans, while the decline from the first quarter of 2015 was primarily due to a decline in the gain on sale of non-performing loans and a reduction in SBA loan sales.

Other non-interest income totaled $2.9 million for the first quarter of 2016, compared to $3.7 million for the fourth quarter of 2015 and $5.4 million for the first quarter of 2015. The decrease in other non-interest income compared to the fourth quarter of 2015 was due to a decline in recoveries on acquired assets in addition to a decline in loan servicing income. During the fourth quarter of 2015, the Company had a large increase in recoveries on assets acquired from BankAsiana and Saehan. The decrease in other non-interest income compared to the first quarter of 2015 was due to the decline in income recorded from the change in the fair value of the Company’s servicing asset and to a lesser extent a decline in income recorded from the fair value change of mortgage derivatives.

Non-Interest Expense

Total non-interest expense was $26.7 million for the first quarter of 2016, compared with $26.6 million for the fourth quarter of 2015, and $22.9 million for the first quarter of 2015. Non-interest expense in the first quarter of 2016 included $458,000 in merger-related costs consisting of mostly legal expenses related to the planned merger of equals with BBCN.

Total salaries and employee benefits expense was $14.8 million for the first quarter of 2016, compared to $13.7 million for the fourth quarter of 2015, and $12.7 million for the first quarter of 2015. The increase in salaries and employee benefits for the first quarter of 2016 compared to the fourth quarter of 2015 was primarily due to an increase in stock-based compensation expense, incentive compensation, and commissions.

The Company’s operating efficiency ratio was 56.3% for the first quarter of 2016, compared with 54.3% for the fourth quarter of 2015, and 44.3% for the first quarter of 2015.

BALANCE SHEET

Total loans receivable (net of deferred fees and costs) were $3.79 billion at March 31, 2016, compared to $3.82 billion at December 31, 2015. During the first quarter of 2016, a decrease in commercial real estate and commercial and industrial loans was partially offset by an increase in construction loans. Total loans held-for-sale increased to $90.4 million at March 31, 2016, from $25.2 million at December 31, 2015, due to an increase in both residential mortgage and SBA loans held-for-sale.

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, 2016				December 31, 2015				September 30, 2015				June 30, 2015				March 31, 2015
Construction		$	36,181			$	19,541			$	18,146			$	16,050			$	26,117
Real Estate Secured			2,962,964				2,992,824				2,810,420				2,723,458				2,701,800
Commercial & Industrial			783,487				792,243				789,422				765,655				769,438
Consumer			12,304				15,096				13,284				14,622				15,465
Total Loans Receivable *			3,794,936				3,819,704				3,631,272				3,519,785				3,512,820
Loans Held-For-Sale			90,392				25,223				13,316				25,269				10,204
Total Loans *		$	3,885,328			$	3,844,927			$	3,644,588			$	3,545,054			$	3,523,024
* 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, 2016								December 31, 2015								September 30, 2015								June 30, 2015								March 31, 2015
Real Estate Secured		$	127,145				46	%		$	273,613				54	%		$	176,605				43	%		$	121,066				41	%		$	138,145					35	%
Commercial & Industrial			34,268				12	%			94,128				19	%			107,952				26	%			46,438				16	%			59,837					15	%
Consumer			–				0	%			55				0	%			360				0	%			124				0	%			1,640					0	%
SBA			26,801				10	%			37,897				8	%			21,871				5	%			25,648				9	%			31,718					8	%
Residential Mortgage			87,866				32	%			95,159				19	%			102,383				25	%			89,652				31	%			11,357					3	%
Warehouse Lines of Credit*			–				0	%			2,000				0	%			7,000				1	%			10,000				3	%			155,000					39	%
Total Loan Originations		$	276,080				100	%		$	502,852				100	%		$	416,171				100	%		$	292,928				100	%		$	397,697					100	%
* Warehouse lines of credit are reported as commercial and industrial loans on the consolidated balance sheet.

Originations for the first quarter of 2016 totaled $276.1 million, compared to $502.9 million for the fourth quarter of 2015, and $397.7 million for the first quarter of 2015. The decrease in loan originations for the three months ended March 31, 2016, compared to the previous quarter, was due to weaker loan demand experienced during the first quarter of 2016 due to seasonality and other market factors.

Total SBA loans held-for-sale at the end of the first quarter of 2016 were $11.6 million, compared to $5.5 million at the end of the previous quarter. Residential mortgage loans held-for-sale at the end of the first quarter of 2016 were $78.0 million, compared to $19.7 million at the end of the previous quarter.

Total deposits were $3.85 billion at March 31, 2016, compared with $3.84 billion at December 31, 2015, with increases in lower-cost deposit categories offsetting declines in time deposits.

CREDIT QUALITY

During the first quarter of 2016 the Company set aside $300,000 in provision for losses on loans and loan commitments.

The allowance for loan losses totaled $52.7 million, or 1.38% of gross loans (excluding loans held-for-sale), at March 31, 2016, compared to $52.4 million, or 1.37% of gross loans (excluding loans held-for-sale), at December 31, 2015. The coverage ratio of the allowance for loan losses to non-performing assets was 149.08% at March 31, 2016, compared with 169.74% at December 31, 2015.

Special mention loans, or criticized loans totaled $161.1 million at March 31, 2016, compared to $120.0 million at December 31, 2015. The increase in criticized loans at March 31, 2016 compared to December 31, 2015 was primarily due to one borrower with two commercial loans totaling $26.0 million. The commercial loans were transferred to the criticized category in the first quarter of 2016 due to temporary deterioration in the borrower’s financial performance, but the Company does not expect any losses to be incurred on these commercial loans at this time. Total classified loans at March 31, 2016 was $85.2 million, compared to $80.4 million at December 31, 2015.

Non-Performing Loans

At March 31, 2016, total non-performing loans were $25.2 million, or 0.65% of total gross loans, compared to $21.7 million, or 0.56% of total gross loans, at December 31, 2015.

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

NON-PERFORMING LOANS		Quarter Ended
(Dollars In Thousands) (Unaudited)		Mar 31, 2016				Dec 31, 2015				Sep 30, 2015				Jun 30, 2015				Mar 31, 2015
(Net of SBA Guaranty Portions)
Real Estate Secured		$	20,007			$	15,422			$	20,123			$	23,235			$	25,329
Commercial & Industrial			5,194				6,272				7,058				7,617				7,193
Total Non-Performing Loans		$	25,201			$	21,694			$	27,181			$	30,852			$	32,522

Net Charge-offs/Recoveries

During the first quarter of 2016, the Company had total gross charge-offs of $598,000, and recoveries of $361,000, which resulted in net charge-offs of $237,000, compared to net recoveries of $2.3 million for the fourth 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)		Mar 31, 2016				Dec 31, 2015				Sep 30, 2015				Jun 30, 2015				Mar 31, 2015
Real Estate Secured		$	219			$	13			$	605			$	249			$	325
Commercial & Industrial			379				1,392				1,270				310				999
Total Loan Charge-Offs		$	598			$	1,405			$	1,875			$	559			$	1,324

LOAN RECOVERIES		Quarter Ended
(Dollars In Thousands) (Unaudited)		Mar 31, 2016				Dec 31, 2015				Sep 30, 2015				Jun 30, 2015				Mar 31, 2015
Real Estate Secured		$	46			$	3,242			$	1,867			$	970			$	193
Commercial & Industrial			315				452				803				240				667
Consumer			–				–				–				–				10
Total Loan Recoveries		$	361			$	3,694			$	2,670			$	1,210			$	870

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, 2016				Dec 31, 2015				Sep 30, 2015				Jun 30, 2015				Mar 31, 2015
(Net of SBA Guaranty Portions)
30 - 59 Days Past Due		$	3,608			$	4,315			$	4,911			$	3,615			$	7,375
60 - 89  Days Past Due			1,491				1,643				1,143				7,576				421
90 Days, and still accruing			–				–				–				–				–
Total Delinquent Loans		$	5,099			$	5,958			$	6,054			$	11,191			$	7,796

          

TROUBLED DEBT RESTRUCTURED LOANS (“TDR”)		Quarter Ended
(Dollars In Thousands) (Unaudited)		Mar 31, 2016				Dec 31, 2015				Sep 30, 2015				Jun 30, 2015				Mar 31, 2015
(Net of SBA Guaranty Portions)
Real Estate Secured		$	23,376			$	22,311			$	24,188			$	29,424			$	28,612
Commercial & Industrial			15,015				15,681				16,578				13,469				11,682
Total TDR Loans		$	38,391			$	37,992			$	40,766			$	42,893			$	40,294

LOAN CLASSIFICATIONS		Quarter Ended
(Dollars In Thousands) (Unaudited)		Mar 31, 2016				Dec 31, 2015				Sep 30, 2015				Jun 30, 2015				Mar 31, 2015
(Net of SBA Guaranty Portions)
Special Mention		$	161,119			$	120,019			$	118,290			$	86,118			$	81,049
Substandard			85,193				80,310				82,000				96,666				89,402
Doubtful			41				41				2,182				5,301				9,822
Total Criticized and Classified Loans		$	246,353			$	200,370			$	202,472			$	188,085			$	180,273
Total Classified Loans		$	85,234			$	80,351			$	84,182			$	101,967			$	99,224

CAPITAL RATIOS

As of March 31, 2016, 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, 2016				Well Capitalized Regulatory Requirements			Total Excess Above Well Capitalized Requirements
Tier 1 Leverage Capital Ratio			11.67	%		5.00	%		308,094
Tier 1 Common Equity Risk-Based Capital Ratio			11.47	%		6.50	%		203,480
Tier 1 Risk-Based Capital Ratio			13.17	%		8.00	%		211,646
Total Risk-Based Capital Ratio			14.42	%		10.00	%		180,972
Tangible Common Equity To Tangible Assets *			10.23	%		N/A			N/A
Tangible Common Equity Per Common Share *		$	6.03			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 19, 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 83078775.

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 five loan production offices of which four are utilized primarily for the origination of loans under the Small Business Administration lending program located in 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 has filed with the SEC a preliminary Registration Statement on Form S-4 that includes a Joint Proxy Statement/Prospectus of Wilshire and BBCN, as well as other relevant documents concerning the proposed transaction. Shareholders are urged to read the preliminary Registration Statement and the Joint Proxy Statement/Prospectus regarding the merger and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they 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 BBCN and Wilshire in the solicitation of proxies in respect of the merger is included in the preliminary Registration Statement and Joint Proxy Statement/Prospectus 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, 2015, and BBCN Bancorp’s Form 10-K for the year ended December 31, 2015, 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)		March 31,				December 31,				Three Months				March 31,				Twelve Months
		2016				2015				% Change				2015				% Change
ASSETS:
Cash and due from banks		$	115,444			$	118,089				-2	%		$	353,438				-67	%
Federal funds sold and other cash equivalents			133				104				28	%			164				-19	%
Total Cash and Cash Equivalents			115,577				118,193				-2	%			353,602				-67	%
Deposits held in other financial institutions			–				–				0	%			8,000				-100	%
Investment securities available for sale			512,257				535,524				-4	%			329,343				56	%
Investment securities held to maturity			19				21				-10	%			25				-24	%
Total Investment Securities			512,276				535,545				-4	%			329,368				56	%
Total Loans Held-For-Sale			90,392				25,223				258	%			10,204				786	%
Real estate construction			36,181				19,541				85	%			26,117				39	%
Residential real estate			226,960				269,117				-16	%			171,117				33	%
Commercial real estate			2,736,004				2,723,707				0	%			2,530,683				8	%
Commercial and industrial			783,487				792,243				-1	%			769,438				2	%
Consumer			12,304				15,096				-18	%			15,465				-20	%
Total loans receivable, net of deferred fees and costs			3,794,936				3,819,704				-1	%			3,512,820				8	%
Allowance for loan losses			(52,668	)			(52,405	)			1	%			(48,170	)			9	%
Loans Receivable, Net of Allowance for Loan Losses			3,742,268				3,767,299				-1	%			3,464,650				8	%
Accrued interest receivable			9,171				9,226				-1	%			8,581				7	%
Due from customers on acceptances			8,900				7,250				23	%			6,472				38	%
Other real estate owned			10,128				9,179				10	%			7,411				37	%
Premises and equipment			15,718				16,096				-2	%			14,058				12	%
Federal home loan bank (FHLB) stock, at cost			16,539				16,539				0	%			16,539				0	%
Cash surrender value of life insurance			25,174				25,028				1	%			23,470				7	%
Investment in affordable housing partnerships			47,257				48,867				-3	%			43,134				10	%
Deferred income taxes			17,897				21,489				-17	%			16,646				8	%
Servicing assets			19,324				19,894				-3	%			19,813				-2	%
Goodwill			67,473				67,473				0	%			67,473				0	%
Other assets			22,307				26,167				-15	%			23,857				-6	%
TOTAL ASSETS		$	4,720,401			$	4,713,468				0	%		$	4,413,278				7	%
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Non-interest bearing demand deposits		$	1,106,805			$	1,088,436				2	%		$	997,803				11	%
Savings and interest checking			173,557				172,038				1	%			161,234				8	%
Money market deposits			993,733				977,697				2	%			886,092				12	%
Time deposits in denomination of $100,000 or more			1,336,311				1,349,440				-1	%			1,322,743				1	%
Other time deposits			243,166				252,265				-4	%			267,294				-9	%
Total Deposits			3,853,572				3,839,876				0	%			3,635,166				6	%
FHLB borrowings			200,000				220,000				-9	%			150,000				33	%
Acceptance outstanding			8,900				7,250				23	%			6,472				38	%
Junior subordinated debentures			72,077				72,016				0	%			71,837				0	%
Accrued interest payable			2,400				2,105				14	%			2,406				0	%
Other liabilities			37,204				39,291				-5	%			41,818				-11	%
Total Liabilities			4,174,153				4,180,538				0	%			3,907,699				7	%
Common stock			234,386				233,341				0	%			232,207				1	%
Retained earnings			304,763				296,303				3	%			267,660				14	%
Accumulated other comprehensive income			7,099				3,286				116	%			5,712				24	%
Total Shareholders’ Equity			546,248				532,930				2	%			505,579				8	%
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	4,720,401			$	4,713,468				0	%		$	4,413,278				7	%

CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars In Thousands, Except Per Share Data) (Unaudited)
		Quarter Ended						Three Mths				Quarter Ended			Twelve Mths
		March 31, 2016			December 31, 2015			% Change				March 31, 2015			% Change
INTEREST INCOME
Interest and fees on loans		$	43,665		$	43,797		0		%		$	40,088		9	%
Interest on investment securities			2,460			2,626		-6		%			1,968		25	%
Interest on federal funds sold and others			124			228		-46		%			192		-35	%
Total Interest Income			46,249			46,651		-1		%			42,248		9	%
INTEREST EXPENSE
Deposits			5,932			5,945		0		%			5,097		16	%
FHLB advances and other borrowings			1,408			1,287		9		%			660		113	%
Total Interest Expense			7,340			7,232		1		%			5,757		27	%
Net interest income before provision for losses on loans and loan commitments			38,909			39,419		-1		%			36,491		7	%
Provision for losses on loans and loan commitments			300			–		0		%			–		0	%
Net interest income after provision for losses on loans and loan commitments			38,609			39,419		-2		%			36,491		6	%
NONINTEREST INCOME
Service charges on deposits			2,851			2,903		-2		%			3,107		-8	%
Gain on sale of SBA loans			1,297			1,958		-34		%			2,245		-42	%
Gain on sale of residential loans			830			898		-8		%			261		218	%
Gain on sale of other loans			545			62		779		%			4,300		-87	%
Other			2,935			3,725		-21		%			5,354		-45	%
Total Noninterest Income			8,458			9,546		-11		%			15,267		-45	%
NONINTEREST EXPENSES
Salaries and employee benefits			14,783			13,676		8		%			12,665		17	%
Occupancy and equipment			3,276			3,390		-3		%			3,373		-3	%
Data processing			1,204			1,156		4		%			1,042		16	%
Merger-related costs			458			994		-54		%			–		0	%
Other			6,932			7,348		-6		%			5,829		19	%
Total Noninterest Expenses			26,653			26,564		0		%			22,909		16	%
Income before income taxes			20,414			22,401		-9		%			28,849		-29	%
Income taxes provision			7,224			8,453		-15		%			10,230		-29	%
NET INCOME		$	13,190		$	13,948		-5		%		$	18,619		-29	%
PER COMMON SHARE INFORMATION:
Basic income per common share		$	0.17		$	0.18		-6		%		$	0.24		-29	%
Diluted income per common share		$	0.17		$	0.18		-5		%		$	0.24		-29	%
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic			78,674,604			78,601,082							78,326,505
Diluted			78,974,448			78,942,078							78,655,365

SUMMARY OF FINANCIAL DATA
(Dollars In Thousands, Except Per Share Data) (Unaudited)
		Quarter Ended
AVERAGE BALANCES		March 31, 2016								December 31, 2015												March 31, 2015
Average Assets		$	4,698,333							$	4,728,510											$	4,255,625
Average Equity			544,527								534,938												500,097
Average Net Loans			3,789,591								3,650,672												3,352,433
Average Deposits			3,833,838								3,922,849												3,490,282
Average Time Deposits of $100,000 or more			1,342,858								1,407,298												1,297,961
Average FHLB & Other Borrowings			201,209								151,848												150,655
Average Interest Earning Assets			4,417,456								4,445,026												3,976,435
		Quarter Ended
PROFITABILITY		March 31, 2016								December 31, 2015												March 31, 2015
Annualized Return on Average Assets			1.12	%							1.18		%										1.75			%
Annualized Return on Average Equity			9.69	%							10.43		%										14.89			%
Efficiency Ratio			56.27	%							54.25		%										44.26			%
Annualized Operating Expense/Average Assets			2.27	%							2.25		%										2.15			%
Annualized Net Interest Margin			3.54	%							3.56		%										3.69			%
		As Of
DEPOSIT COMPOSITION		March 31, 2016				Cost of Funds				December 31, 2015						Cost of Funds						March 31, 2015							Cost of Funds
Noninterest Bearing Demand Deposits			28.7	%			0.00	%			28.3		%				0.00	%					27.4			%				0.00		%
Savings & Interest Checking			4.5	%			1.25	%			4.5		%				1.26	%					4.4			%				1.31		%
Money Market Deposits			25.8	%			0.71	%			25.5		%				0.69	%					24.4			%				0.67		%
Time Deposits of $100,000 or More			34.7	%			0.91	%			35.1		%				0.89	%					36.4			%				0.80		%
Other Time Deposits			6.3	%			0.92	%			6.6		%				0.91	%					7.4			%				0.86		%
Total Deposits			100.0	%			0.62	%			100.0		%				0.61	%					100.0			%				0.58		%
		As Of
CAPITAL RATIOS		March 31, 2016								December 31, 2015												March 31, 2015
Tier 1 Leverage Ratio			11.67	%							11.30		%										11.86			%
Tier 1 Common Equity Risk-Based Capital Ratio			11.47	%							11.23		%										11.58			%
Tier 1 Risk-Based Capital Ratio			13.17	%							12.86		%										13.38			%
Total Risk-Based Capital Ratio			14.42	%							14.11		%										14.64			%
Total Shareholders' Equity		$	546,248							$	532,930											$	505,579
Book Value Per Common Share		$	6.93							$	6.78											$	6.45
Tangible Common Equity Per Common Share *		$	6.03							$	5.88											$	5.54
Tangible Common Equity to Tangible Assets *			10.23	%							9.96		%										10.00			%
* Excludes goodwill and other intangible assets

ALLOWANCE FOR LOAN LOSSES
(Dollars In Thousands) (Unaudited)
		Quarter Ended
		March 31, 2016				December 31, 2015				September 30, 2015				June 30, 2015				March 31, 2015
Balance at beginning of period		$	52,405			$	50,116			$	48,821			$	48,170			$	48,624
Provision for losses on loans			500				–				500				–					–
Recoveries on loans previously charged-off			361				3,694				2,670				1,210				870
Gross loan charge-offs			(598	)			(1,405	)			(1,875	)			(559	)			(1,324		)
Balance at end of period		$	52,668			$	52,405			$	50,116			$	48,821			$	48,170
Net Loan Charge-offs / Average Net Loans			0.01	%			-0.06	%			-0.02	%			-0.02	%			0.01		%
Charge-offs / Average Total Loans			0.02	%			0.04	%			0.05	%			0.02	%			0.04		%
Allowance for Loan Losses / Gross Loans*			1.38	%			1.37	%			1.38	%			1.38	%			1.37		%
Allowance for Loan Losses / Non-accrual Loans			208.99	%			241.56	%			184.38	%			158.24	%			148.12		%
Allowance for Loan Losses / Non-performing Loans			208.99	%			241.56	%			184.38	%			158.24	%			148.12		%
Allowance for Loan Losses / Non-performing Assets			149.08	%			169.74	%			130.23	%			130.50	%			120,63		%
Allowance for Loan Losses / Classified Loans			61.79	%			65.22	%			59.53	%			47.88	%			48.55		%
* Excludes held-for-sale loans
NON-PERFORMING ASSETS
(Dollars In Thousands, Net of SBA Guaranty)		Quarter Ended
(Unaudited)		March 31, 2016				December 31, 2015				September 30, 2015				June 30, 2015				March 31, 2015
Non-accrual loans		$	25,201			$	21,694			$	27,181			$	30,852			$	32,522
Loans 90 days or more past due and still accruing			–				–				–				–					–
Total Non-performing Loans			25,201				21,694				27,181				30,852				32,522
Total OREO			10,128				9,179				11,302				6,559				7,411
Total Non-performing Assets		$	35,329			$	30,873			$	38,483			$	37,411			$	39,933
Total Non-performing Loans/Gross Loans			0.65	%			0.56	%			0.74	%			0.87	%			0.92		%
Total Non-performing Assets/Total Assets			0.75	%			0.65	%			0.81	%			0.81	%			0.90		%
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS
(Dollars In Thousands) (Unaudited)
		Quarter Ended
		March 31, 2016				December 31, 2015				March 31, 2015
Balance at beginning of period		$	1,261			$	1,261			$	1,061
Provision for losses on loan commitments			(200	)			–				–
Balance at end of period		$	1,061			$	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
		March 31, 2016											December 31, 2015												March 31, 2015
		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		$	3,050,251		$	35,025				4.59	%		$	2,904,530		$	34,851				4.80		%			$	2,732,436		$	32,565				4.77	%
Commercial Loans			737,336			7,486				4.06	%			743,686			7,662				4.12		%				616,848			6,282				4.07	%
Consumer Loans			12,522			86				2.75	%			12,650			96				3.04		%				13,141			116				3.53	%
Total Gross Loans			3,800,109			42,597				4.48	%			3,660,866			42,609				4.66		%				3,362,425			38,963				4.64	%
Deferred Fees and Costs Loan Fees			(10,518	)		1,068								(10,194	)		1,188										(9,992	)		1,125
Total Loans *			3,789,591			43,665				4.61	%			3,650,672			43,797				4.80		%				3,352,433			40,088				4.78	%
INVESTMENT SECURITIES AND
OTHER INTEREST-EARNING ASSETS:
Investment Securities**			529,552			2,460				1.97	%			496,571			2,626				2.24		%				359,302			1,968				2.38	%
Deposits Held In Other Institutions			–			–				0.00	%			4,223			22				2.08		%				8,000			32				1.60	%
Federal Funds Sold & Others			98,313			124				0.50	%			293,560			206				0.28		%				256,700			160				0.25	%
Total Investment Securities and
Other Earning Assets			627,865			2,584				1.74	%			794,354			2,854				1.51		%				624,002			2,160				1.49	%
TOTAL INTEREST-EARNING ASSETS		$	4,417,456		$	46,249				4.20	%		$	4,445,026		$	46,651				4.21		%			$	3,976,435		$	42,248				4.27	%
Total Non-Interest Earning Assets			280,877											283,484													279,190
TOTAL ASSETS		$	4,698,333										$	4,728,510												$	4,255,625
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money Market		$	1,008,081		$	1,787				0.71	%		$	982,301		$	1,684				0.69		%			$	844,576		$	1,406				0.67	%
NOW			37,936			25				0.26	%			34,586			23				0.27		%				29,230			17				0.23	%
Savings			134,064			511				1.53	%			132,186			504				1.53		%				129,239			502				1.55	%
Time Deposits of $100,000 or More			1,342,858			3,044				0.91	%			1,407,298			3,132				0.89		%				1,297,961			2,603				0.80	%
Other Time Deposits			246,197			565				0.92	%			263,322			602				0.91		%				265,626			569				0.86	%
Total Interest Bearing Deposits			2,769,136			5,932				0.86	%			2,819,693			5,945				0.84		%				2,566,632			5,097				0.79	%
BORROWINGS:
FHLB Advances and Other Borrowings			201,209			905				1.80	%			151,848			828				2.18		%				150,655			232				0.62	%
Junior Subordinated Debentures			72,037			503				2.79	%			71,976			459				2.55		%				71,799			428				2.38	%
Total Borrowings			273,246			1,408				2.06	%			223,824			1,287				2.30		%				222,454			660				1.19	%
TOTAL INTEREST BEARING LIABILITIES		$	3,042,382		$	7,340				0.97	%		$	3,043,517		$	7,232				0.95		%			$	2,789,086		$	5,757				0.83	%
Non-Interest Bearing Deposits			1,064,702											1,103,156													923,650
Other Liabilities			46,722											46,899													42,792
Shareholders’ Equity			544,527											534,938													500,097
TOTAL LIABILITIES AND EQUITY		$	4,698,333										$	4,728,510												$	4,255,625
NET INTEREST INCOME					$	38,909										$	39,419												$	36,491
.
NET INTEREST SPREAD										3.24	%										3.26		%											3.44	%
NET INTEREST MARGIN										3.54	%										3.56		%											3.69	%
* 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, 2016				December 31, 2015				March 31, 2015
Total shareholders’ equity	$	546,248			$	532,930			$	505,579
Goodwill and other intangible assets, net		(70,458	)			(70,658	)			(71,385	)
Tangible common equity	$	475,790			$	462,272			$	434,194
Total assets	$	4,720,401			$	4,713,468			$	4,413,278
Goodwill and other intangible assets, net		(70,458	)			(70,658	)			(71,385	)
Tangible assets	$	4,649,943			$	4,642,810			$	4,341,893
Common shares outstanding		78,845,873				78,608,717				78,329,458
Tangible Common Equity and Tangible Assets 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.

WILSHIRE BANCORP, INC. 
Alex Ko, EVP & CFO, (213) 427-6560
www.wilshirebank.com