LOS ANGELES, Oct. 27, 2009 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq:WIBC), the holding company for Wilshire State Bank, today reported a net loss available to common shareholders of $1.7 million, or $0.06 loss per diluted common share.
The net loss was primarily attributed to $24.2 million provision for loan losses for the third quarter of 2009, an increase of $20.8 million from the same period in 2008. The increase in provision for loan losses was a proactive measure to address economic indicators of potential commercial real estate (CRE) credit risk exposures and uncertainty. A comprehensive review of CRE collateral value was completed during the third quarter. In addition, CRE credit exposure analysis and stress tests were performed on our CRE loan portfolio. Taking into consideration the results of the CRE testing and analysis, we believe we have set aside a sufficient amount of reserves.
"We ended the third quarter on a positive note and managed to strengthen allowance for loan losses," said Ms. Joanne Kim, President and CEO. "Even in this challenging economic environment we achieved substantial expansion in net interest margin, experienced strong growth in core deposits, made meaningful improvements to our liquidity position, and we successfully completed the integration of all aspects of the Mirae Bank acquisition.
During the third quarter we had a sharp decrease in loan delinquencies. The Bank has proactively taken steps to address deterioration in credit quality, especially in our CRE loan portfolio. We aggressively reserved what we believe to be a sufficient amount in loan provisions for future expected losses. We are in a position where we can resolve our credit issues and continue to increase our profitability while managing prudent growth.
THIRD QUARTER 2009 HIGHLIGHTS:
* Net Interest Margin Expansion -- Net interest margin expanded by 51 basis points to 3.87%, compared to 3.36% in 2Q '09 and 3.87% in 3Q '08. Total interest income increased by 28% and net interest income increased 40% compared to 2Q '09. * Strengthened Allowance For Loan Losses -- Provision for loan losses increased to $24.2 million, from $12.1 million in 2Q '09 and $3.4 million in 3Q '08. Allowance for loan losses as percentage is 2.24% of total gross loans and 2.52% of legacy Wilshire gross loans. * Completion Of Comprehensive CRE Credit Risk Analysis -- Underlying CRE collateral values were updated and reflected in CRE impairment analysis. CRE stress test analysis was completed. CRE delinquent loans decreased from the previous quarter. * Strong Core Deposits Growth -- Core deposits increased to $1.73 billion, a 43% increase from 2Q '09 and an 81% increase from 3Q '08. * Strong Capital Position -- Total risk-based capital ratio increased to 15.8%, compared to 14.8% at 2Q '09 and 14.0% at 3Q '08. Tangible common equity per common share increased to $6.93, compared to $6.81 at 2Q '09 and $6.12 at 3Q '08. * Completion of Successful Integration Of Former Mirae Bank -- The efficiency ratio was lowered to 40% with substantial cost savings, more than 95% of Mirae Bank deposits were retained, and the closure of 4 out of 5 branches acquired was completed.
CREDIT QUALITY
During the third quarter, we accelerated the resolution of problem loans. As a result, allowance for loan losses increased to $54.7 million, or 2.24% of gross loans. This compares to $38.8 million or 1.62% of gross loans at June 30, 2009, and $26.0 million or 1.28% of gross loans at September 30, 2008. Provision for loan losses increased to $24.2 million, compared to $12.1 million in the second quarter of 2009 and $3.4 million in the third quarter of 2008. Upon acquiring former Mirae Bank, we entered into a loss share agreement with the FDIC where the FDIC will share in losses on assets covered under the agreement, which include loans acquired from Mirae and foreclosed loan collateral existing at June 26, 2009. Henceforth, loans acquired through the acquisition of Mirae Bank are identified as "covered" loan, and those that were originated at Wilshire are "non-covered" loan or "Legacy Wilshire" loans. The following is a table of "covered" and "non-covered" loans as of quarter ended June and September 2009:
By Loan
Category
(dollars
in thousands) Quarter Ended
-------------------------------------------------------------
Sep 30, 2009 Jun 30, 2009
------------------------------ ------------------------------
NON- TOTAL NON- TOTAL
COVERED COVERED LOANS COVERED COVERED LOANS
-------- ---------- ---------- -------- ---------- ----------
Construc-
tion $ 494 $ 44,586 $ 45,080 $ 494 $ 40,023 $ 40,517
Real
Estate
Secured 206,770 1,766,428 1,973,198 205,138 1,692,392 1,897,530
Commer-
cial &
Indus-
trial 66,829 348,910 415,739 79,194 369,592 448,786
Consumer 627 15,984 16,611 948 17,542 18,490
-------- ---------- ---------- -------- ---------- ----------
TOTAL
GROSS
LOANS $274,720 $2,175,908 $2,450,628 $285,774 $2,119,549 $2,405,323
======== ========== ========== ======== ========== ==========
Loan Delinquency
During the third quarter of 2009, total loan delinquencies decreased by 62% or $44.9 million to $27.6 million compared to the second quarter of 2009 as reflected in the tables below:
DELINQUENT LOANS
----------------
By Days Past Due
(dollars in thousands) Quarter Ended
---------------------------------------------
Sep 30, 2009 Jun 30, 2009
---------------------------------------------
NON- TOTAL NON- TOTAL
COVERED COVERED LOANS COVERED COVERED LOANS
------ ------- - ----- ------ ------- -------
30 - 59 Days Past Due $6,340 $ 7,602 $13,942 $6,782 $28,577 $35,359
60 - 89 Days Past Due 1,513 11,342 12,855 6,961 30,040 37,001
90 Days, and Still
Accruing 772 -- 772 -- 128 128
------ ------- ------- ------- ------- -------
TOTAL DELINQUENCIES $8,625 $18,944 $27,569 $13,743 $58,745 $72,488
====== ======= ======= ======= ======= =======
Quarter Ended
--------------------------------------
Mar 31, Dec 31, Sep 30,
2009 2008 2008
----------- ------------ -----------
TOTAL LOANS
--------------------------------------
30 - 59 Days Past Due $ 12,756 $ 8,769 $ 8,584
60 - 89 Days Past Due 3,387 2,851 2,868
90 Days, and Still
Accruing 475 213 496
----------- ------------ -----------
TOTAL DELINQUENCIES $ 16,618 $ 11,833 $ 11,948
=========== ============ ===========
By Loan Category
(dollars in thousands)
Quarter Ended
--------------------------------------------------
Sep 30, 2009 Jun 30, 2009
------------------------ ------------------------
NON- TOTAL NON- TOTAL
COVERED COVERED LOANS COVERED COVERED LOANS
------ ------- ------- ------- ------- -------
Construction $ -- $ -- $ -- $ 494 $ -- $ 494
Real Estate Secured 6,267 15,328 21,595 10,576 49,675 60,251
Commercial
& Industrial 2,358 3,426 5,784 2,673 8,862 11,535
Consumer -- 190 190 -- 208 208
------ ------- ------- ------- ------- -------
TOTAL DELINQUENCIES $8,625 $18,944 $27,569 $13,743 $58,745 $72,488
====== ======= ======= ======= ======= =======
Quarter Ended
-------------------------
Mar 31, Dec 31, Sep 30,
2009 2008 2008
-------------------------
TOTAL LOANS
-------------------------
Construction $ -- $ -- $ --
Real Estate Secured 14,336 8,989 9,452
Commercial & Industrial 2,032 2,514 2,205
Consumer 250 330 291
------- ------- -------
TOTAL DELINQUENCIES $16,618 $11,833 $11,948
======= ======= =======
Non-covered loan delinquencies for 30-59 days past due decreased by $21.0 million and 60-89 day delinquencies decreased by $18.7 million in September 2009 compared to June of the same year. The majority of the decreased delinquencies resulted from a decrease in non-covered real estate secured loans of $34.3 million. All categories of delinquencies by loan types experienced decreases in the third quarter led by a decrease of $38.7 million or 64%, in real estate secured loans. Although about $17.3 million in non-covered delinquent loans in the second quarter were classified as non-accrual in the third quarter, $22.5 million in decreases in delinquencies were mainly due to the payoff and resolution of these loans. We recorded the highest number of delinquencies in the second quarter of 2009 and are now experiencing a downward delinquency trend in all loan types.
Non-accrual Loans
-----------------
(dollars in
thousands) Quarter Ended
----------------------------------------------------
Sep 30, 2009 Jun 30, 2009
------------------------- -------------------------
NON- TOTAL NON- TOTAL
COVERED COVERED LOANS COVERED COVERED LOANS
------- ------- ------- ------- ------- -------
Construction $ 494 $ -- $ 494 $ -- $ -- $ --
Real Estate
Secured 21,002 44,469 65,471 11,394 32,153 43,547
Commercial &
Industrial 3,511 7,868 11,379 2,896 2,789 5,685
Consumer -- 49 49 -- 90 90
------- ------- ------- ------- ------- -------
TOTAL NON-ACCRUAL
LOANS $25,007 $52,386 $77,393 $14,290 $35,032 $49,322
======= ======= ======= ======= ======= =======
Quarter Ended
------------------------------
Mar 31, Dec 31, Sep 30,
2009 2008 2008
------------------------------
TOTAL LOANS
------------------------------
Construction $ -- $ -- $ --
Real Estate Secured 23,185 9,334 9,506
Commercial & Industrial 5,774 5,874 3,593
Consumer 307 131 134
-------- -------- --------
TOTAL NON-ACCRUAL LOANS $ 29,266 $ 15,339 $ 13,233
======== ======== ========
Compared to the second quarter of 2009, total non-accrual loans increased by $28.1 million to $77.4 million or 3.16% of gross loans during the third quarter. The increase in non-covered non-accrual loans was due to a migration of loans that were delinquent as of the second quarter which were reclassified as non-accrual during the third quarter. However, the number of delinquent loans that potentially can migrate to non-accrual status is much smaller this quarter compared to the second quarter of 2009. Of the total non-accrual loans, covered loans represent $25.0 million or 32% of total non-accrual loans. All of these covered loans were acquired in the Mirae acquisition and are covered under the FDIC loss-share agreement of up to 80% of losses not exceeding $83 million and 95% for losses that exceed that amount.
Of the $52.6 million non-covered loans classified as non-accrual, $8.5 million in non-covered loans are expected to be resolved in the fourth quarter of 2009 through the sale of non-accrual notes and reclassification of loans from non-accrual status to performing.
Loan Charge-offs
----------------
(dollars in
thousands) Quarter Ended
----------------------------------------------------
Sep 30, 2009 Jun 30, 2009
------------------------- -------------------------
NON- TOTAL NON- TOTAL
COVERED COVERED LOANS COVERED COVERED LOANS
------- ------- ------- ------- ------- -------
Construction $ -- $ -- $ -- $ -- $ -- $ --
Real Estate
Secured 148 1,740 1,888 -- 176 176
Commercial &
Industrial 381 5,753 6,134 -- 6,940 6,940
Consumer -- 191 191 -- 356 356
------- ------- ------- ------- ------- -------
TOTAL LOAN
CHARGE-OFFS $ 529 $ 7,684 $ 8,213 $ -- $ 7,472 $ 7,472
======= ======= ======= ======= ======= =======
Quarter Ended
--------------------------
Mar 31, Dec 31, Sep 30,
2009 2008 2008
------- ------- --------
TOTAL LOANS
--------------------------
Construction $ -- $ -- $ --
Real Estate Secured 672 823 204
Commercial & Industrial 1,629 1,688 1,106
Consumer 102 96 203
------- ------- --------
TOTAL LOAN CHARGE-OFFS $2,403 $2,607 $1,513
======= ======= =======
Loan charge-offs for the quarter ended September 30, 2009 was $8.2 million, an increase of $741,000 compared to the second quarter of 2009. Commercial and industrial and consumer loans charge-offs decreased by $806,000 and $165,000, respectively, from June 30, 2009 to September 30, 2009. Real estate secured loan charge-offs increased from the second quarter by $1.7 million of which $844,000 was charged-off in connection with three loan sales.
STRONG COMMERCIAL REAL ESTATE PORTFOLIO
CRE Loan Composition
Total CRE loans increased by $117 million or 7% to $1.88 billion from $1.76 billion at June 30, 2009 and $1.52 billion at December 31, 2008 as noted below:
(dollars in
thousands) Sept. 30, June 30, 3 MTHS Dec. 31, 9 MTHS
2009 % 2009 % CHANGE 2008 % CHANGE
---------- ---- ---------- ---- ---- ---------- ---- ----
Multi-Family $ 116,456 6% $ 120,000 7% -3% $ 52,115 3% 123%
Office /
Mixed Use 264,536 14% 229,266 13% 15% 271,073 18% -2%
Retail 719,969 38% 703,129 40% 2% 553,076 36% 30%
Industrial /
Warehouse 317,501 17% 277,044 16% 15% 243,867 16% 30%
Hotel /
Motel 313,138 17% 311,341 18% 1% 247,317 16% 27%
Other 147,734 8% 121,689 7% 21% 154,322 10% -4%
---------- ---- ---------- ---- ---- ---------- ---- ----
Total CRE
Loans $1,879,334 100% $1,762,469 100% 7% $1,521,770 100% 23%
========== ==== ========== ==== ==== ========== ==== ====
The increase in CRE loans is mainly due to organic growth and the acquisition of the former Mirae Bank loan portfolio. With the acquisition and organic growth of the CRE portfolio, CRE loan concentration remained high at September 30, 2009. However, CRE credit risk exposure on purchased loans is limited to only 20% of credit losses with the FDIC loss sharing protection.
CRE Loan Delinquency
Total delinquent CRE loans remained at a low level at $19 million or 0.77% of total loans. The non-accrual balance for CRE loans was $60 million or 2.44% of total loans as noted below:
(dollars in 90 days
thousands) 30-59 60-89 Total past due, Non-
days days Delinquent still accrual
past due past due Loan accrual loan
-------- -------- -------- -------- --------
Multi-Family $ -- $ -- $ -- $ -- $ --
Office / Mixed Use 11 831 842 -- 1,983
Retail 8,137 6,670 14,806 -- 21,815
Industrial /
Warehouse 1,028 588 1,616 -- 12,444
Hotel / Motel 375 45 420 476 7,433
Other 507 714 1,221 -- 15,875
-------- -------- -------- -------- --------
Total Delinquent
CRE Loans $ 10,058 $ 8,847 $ 18,905 $ 476 $ 59,550
======== ======== ======== ======== ========
% of Total CRE
Loans 0.54% 0.47% 1.01% 0.03% 3.17%
======== ======== ======== ======== ========
% of Total Loans 0.41% 0.36% 0.77% 0.02% 2.44%
======== ======== ======== ======== ========
We completed a comprehensive third party independent appraisal update on our commercial real estate loan portfolio in the third quarter of 2009. The loans included in the appraisal update consisted of all non-performing loans, all non-accrual loans, all troubled debt restructured (TDR) loans, watch list loans over $1 million for legacy Wilshire and watch list loans over $0.5 million for former Mirae, and certain large performing lending relationships. As a result, the average loan to value ratio for the loans that we reviewed increased from 64% to 86% and the loan to value ratio for the entire CRE portfolio increased to 65% from 61%. We completed a comprehensive impaired loan analysis utilizing the updated appraisal value of collateral and allocated sufficient allowance. For the loans that were classified and performing but collateral values had decreased more than their outstanding loan balance, we also allocated reserves for the underwater collateral value. 97% of CRE loan portfolio was performing and 85% of CRE loans had lower than 80% LTV ratio based on updated appraisal values discussed above. The following is a breakdown of LTV ratio changes by property type:
ORIGIN- UP-
ATION DATED (dollars
LTV LTV in thousands) AMOUNT %
------- ----- ---------- -----
Multi-Family 66% 78%
Office /
Mixed Use 57% 59% Less than 60% $ 601,489 32%
Retail 62% 67% 60% to 69% 653,880 35%
Industrial /
Warehouse 62% 62% 70% to 79% 332,668 18%
Hotel / Motel 61% 65% 80% to 89% 134,573 7%
Other 58% 63% 90% and above 156,724 8%
------- ----- ------------------
Total CRE
Loans 61% 65% Total $1,879,334 100%
======= ===== ==================
CRE loan refinance risk during the current economic environment remained high as the value of the collateral decreased. At September 30, 2009, the CRE loan maturity distributions are listed below:
(dollars in thousands) 2009 2010 2011 2012
-------- -------- -------- --------
Multifamily $ 46,827 $ 4,562 $ 7,583 $ 11,018
Office / Mixed Use 26,590 26,569 12,520 53,233
Retail 14,525 38,674 85,894 107,127
Industrial / Warehouse 15,413 27,319 24,471 65,922
Hotel / Motel 1,207 37,219 40,337 52,646
Other 12,379 29,331 18,297 22,044
-------- -------- -------- --------
Total CRE Loans $116,941 $163,674 $189,102 $311,990
======== ======== ======== ========
% of CRE 6% 9% 10% 16%
======== ======== ======== ========
(dollars in thousands) 2013 2014 & after TOTAL
----------- ------------ ------------
Multifamily $ 18,952 $ 27,514 $ 116,456
Office / Mixed Use 46,039 99,584 264,535
Retail 158,146 315,603 719,969
Industrial / Warehouse 44,031 140,345 317,501
Hotel / Motel 46,317 135,413 313,139
Other 18,665 47,018 147,734
----------- ------------ ------------
Total CRE Loans $ 332,150 $ 765,477 $ 1,879,334
=========== ============ ============
% of CRE 18% 41% 100%
=========== ============ ============
We believe that our refinance risk is limited based on low LTV and lower amount of loans due for refinance or maturity. 85% of the CRE loan portfolio had maturities in 2011 or later.
In the third quarter we performed a commercial real estate stress test. The loss assumptions that we used in our stress test were similar to the indicative loss rates disclosed in the Supervisory Capital Assessment Program (SCAP). Based on the results of the stress test, we concluded that our current loan loss reserve is adequate as of September 30, 2009 and CRE portfolio is resilient and able to withstand expected value declines and increased refinance risks.
BALANCE SHEET
Loan portfolio growth
Total assets increased by $203 million or 6.4% to $3.38 billion at September 30, 2009, from $3.17 billion at June 30, 2009 primarily due to increases of $45.6 million in gross loans and $131.9 million in investment securities. Gross loan portfolio increased to $2.45 billion at September 30, 2009, from $2.40 billion at June 30, 2009 and $2.05 billion at December 31, 2008. The increase in loans and investments were funded primarily by increased customer deposits.
Deposit increase and liquidity improvement
Total deposits increased to $2.67 billion at September 30, 2009, which represents an increase of 9.0% or $220.5 million from June 30, 2009 and 47.4% or $859.5 million from December 31, 2008. The increase in deposits resulted from a substantial increase in core deposits of $520.2 million or 42.9% compared to June 30, 2009 and $868.2 million or 100.5% compared to December 31, 2008. Core deposits consist of demand deposits, savings, NOW accounts, money market accounts, and time deposits accounts under $100,000. Brokered deposits are not considered core deposits. We have successfully grown core deposits by introducing new deposit products, attracting new customers, and expanding existing customer relationships. With the successful increase in core deposits, the cost of deposits has decreased considerably. The cost of deposits for the third quarter decreased to 2.04%, a 31 basis point decrease from the second quarter of 2009. The inflow of core deposits allowed us to pay-down brokered deposits with higher interest rates. Our brokered deposits decreased to $64.1 million as of September 30, 2009, compared to $102.3 million at June 30, 2009 and $147.9 million at December 31, 2008.
Strong Capital Ratios
Capital ratios remained strong and well in excess of "well capitalized" regulatory requirements and we had an ample amount of excess capital to absorb future credit cost as noted below table:
(Dollars in thousands)
Well Total Excess
Capitalized Above Well
Sept. 30, Regulatory Capitalized
2009 Requirements Requirements
--------- ------------ ------------
Tier 1 Leverage Capital
Ratio 10.03% 5.00% $ 165,065
Tier 1 Risk-Based Capital
Ratio 14.29% 6.00% 191,944
Total Risk-Based Capital
Ratio 15.82% 10.00% 133,954
Tangible Common Equity To
Risk-Weighted Assets Ratio 8.85% 4.00% 111,662
The third quarter dividends on common and non-cumulative perpetual convertible preferred stock, series A, were declared. The common stock cash dividend was $0.05 per share, a consistent amount per share with prior quarter dividends. We will continue to review the dividend policy quarterly, in light of the current economic environment.
NET INTEREST MARGIN
Interest income increased by $9.9 million or 28%, to $45.1 million in the third quarter 2009, compared to interest income of $35.2 million and $37.6 million in the second quarter of 2009, and third quarter of 2008, respectively. Net interest income increased by $8.4 million or 40% compared to net interest income of $21.0 million in the second quarter of 2009, and $21.4 million in the third quarter of 2008. The increase in interest income and net interest income is largely due to a combination of increased earning assets obtained through the acquisition of the former Mirae Bank as well as strong organic growth.
Net interest margin increased by 51 basis points to 3.87% in the third quarter of 2009 from 3.36% in the second quarter of 2009, and was unchanged from the year-earlier quarter.
The weighted average loan yield increased by 52 basis points to 6.58% in the third quarter of 2009 from 6.06% in the second quarter of 2009 and the yield on investment securities increased 7 basis points to 3.54% in the third quarter of 2009 from 3.47% in the second quarter of 2009. The increase in loan yield was primarily due to accretion of interest on the loans acquired from Mirae Bank that were paid off early and where total cash flows received on those assets exceeded the related initial investment at acquisition. Accreted interest income is recognized on a level yield basis over the life of the loan. Interest income of $4.4 million was accreted in the third quarter of 2009 that contributed 57 basis points to net interest margin, compared to none accreted in the second quarter of 2009.
Net interest income reversal on non-accrual loans was $2.5 million in the third quarter of 2009, as compared to $441,000 in the second quarter of 2009. Net interest income reversal in the third quarter of 2009 impacted our net interest margin by 41 basis points.
Average interest bearing deposits increased by $464.3 million to $2.2 billion in the third quarter of 2009 from $1.7 billion in the second quarter of 2009, and the related cost of deposits decreased by 37 basis points to 2.39% in the third quarter of 2009 compared to 2.76% in the second quarter of 2009. The decrease in the cost of deposits was due to repricing of related interest bearing deposits at lower rates. Certificate of deposits of $445.7 million with a weighted average yield of 2.84%, and $212.3 million with a weighted average yield of 2.44%, are expected to mature in the fourth quarter of 2009 and the first quarter of 2010, respectively. We expect to reprice these certificates of deposits at lower rates upon maturity.
SUCCESSFUL COMPLETION OF INTEGRATION OF THE FORMER MIRAE BANK
The integration of former Mirae Bank was successfully completed during the third quarter of 2009. We retained more than 95% of total customer deposits. We have also been able to realize sizable cost savings. Through workforce reductions and the closure of four out of five branches that we acquired, we were able to reduce the efficiency ratio to 40.26% in the third quarter of 2009 from 45.99% in the year-earlier period. We also reduced our credit exposure to commercial real estate loans. While we increased our CRE loans by $205.4 million through the acquisition, we reduced our CRE credit exposure through our loss sharing agreement with the FDIC. Pursuant to this agreement, the FDIC has agreed to bear 80% of loan and foreclosed real estate losses in an amount of up to $83 million and 95% of losses that exceed $83 million. Overall, the former Mirae Bank loan portfolio credit performance has been better than was expected at the time of acquisition. Delinquent and classified covered loans decreased during the third quarter of 2009.
CONFERENCE CALL
Management will host its quarterly conference call on October 27, 2009, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing 1-800-901-5241 using passcode 59131956.
COMPANY INFORMATION
Headquartered in Los Angeles, Wilshire State Bank operates 23 branch offices in California, Texas, New Jersey and New York, and five loan production offices in Dallas, Houston, Atlanta, Denver, and Annandale, VA, and is a SBA preferred lender nationwide. Wilshire State 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. Wilshire Bancorp's strategic goals include increasing shareholder and franchise value by continuing to grow its multi-ethnic banking business and expanding its geographic reach to other similar markets with strong levels of small business activity.
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. Specific factors include, but are not limited to, loan production and sales, credit quality, the ability to expand net interest margin, the ability to continue to attract low-cost deposits, success of expansion efforts, competition in the marketplace and general economic conditions. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes included in Wilshire Bancorp's most recent reports on Form 10-K and Form 10-Q, as filed with the Securities and Exchange Commission, as they may be amended from time to time. Results of operations for the most recent quarter are not necessarily indicative of operating results for any future periods. Any projections in this release are based on limited information currently available to management and are subject to change. Since management will only provide guidance at certain points during the year, Wilshire Bancorp will not necessarily update the information. Such information speaks only as of the date of this release. Additional information on these and other factors that could affect financial results are included in filings by Wilshire Bancorp with the Securities and Exchange Commission.
CONSOLIDATED BALANCE SHEET
--------------------------
(dollars in thousands) Sept. 30, June 30, Three Month Dec. 31,
(unaudited) 2009 2009 Change 2008
---------- ---------- ---------- ----------
ASSETS:
-------
Cash and Due from
Banks $ 141,533 $ 75,844 87% $ 67,540
Federal Funds Sold and
Other Cash Equivalents 130,004 145,077 -10% 30,001
---------- ---------- ----------
Total Cash and Cash
Equivalents 271,537 220,921 23% 97,541
---------- ---------- ----------
Investment Securities
Available For Sale 559,602 427,714 31% 229,136
Investment Securities
Held To Maturity 116 124 -6% 139
---------- ---------- ----------
Total Investment
Securities 559,718 427,838 31% 229,275
---------- ---------- ----------
Loans
Real Estate
Construction 45,080 40,517 11% 43,180
Residential Real
Estate 79,384 79,295 0% 77,846
Commercial Real Estate 1,890,432 1,814,470 4% 1,519,082
Commercial and
Industrial 414,194 446,936 -7% 387,752
Consumer 16,262 18,489 -12% 23,669
---------- ---------- ----------
Total Loans 2,445,352 2,399,707 2% 2,051,529
Allowance For
Loan Losses (54,735) (38,758) 41% (29,437)
---------- ---------- ----------
Loans Receivable, Net
of Allowance for
Loan Losses 2,390,617 2,360,949 1% 2,022,092
---------- ---------- ----------
Accrued Interest
Receivable 13,375 12,639 6% 9,975
Due from Customers
on Acceptances 251 251 0% 2,213
Other Real Estate Owned 6,238 5,956 5% 2,663
Premises and Equipment 12,454 12,360 1% 11,265
Federal Home Loan Bank
(FHLB) Stock, at Cost 21,040 21,040 0% 17,537
Cash Surrender Value
of Life Insurance 17,884 17,715 1% 17,395
Investment in
Affordable Housing
Partnerships 12,271 12,228 0% 9,019
Deferred Income Taxes 8,787 14,148 -38% 12,051
Servicing Assets 6,898 6,677 3% 4,839
Goodwill 6,675 6,675 0% 6,675
FDIC Loss Share
Indemnification 40,014 40,235 -1% --
Other Assets 9,804 14,479 -32% 7,471
---------- ---------- ----------
TOTAL ASSETS 3,377,563 $3,174,111 6% $2,450,011
========== ========== ==========
LIABILITIES AND
STOCKHOLDERS' EQUITY:
----------------------
LIABILITIES:
Non-interest Bearing
Demand Deposits $ 373,332 $ 367,243 2% $ 277,542
Savings and Interest
Checking 91,223 81,126 12% 65,923
Money Market Deposits 752,788 593,610 27% 362,719
Time Deposits in
denomination of
$100,000 or more 928,724 1,136,438 -18% 902,804
Other Time Deposits 526,035 273,186 93% 203,613
---------- ---------- ----------
Total Deposits 2,672,102 2,451,603 9% 1,812,601
---------- ---------- ----------
Federal Home Loan Bank
borrowings and Federal
Funds Purchased 322,000 331,000 -3% 274,000
Acceptance Outstanding 251 251 0% 2,213
Junior Subordinated
Debentures 87,321 87,321 0% 87,321
Accrued Interest
Payable 7,715 11,099 -30% 6,957
Other Liabilities 15,687 23,679 -34% 11,859
---------- ---------- ----------
Total Liabilities 3,105,076 2,904,953 7% 2,194,951
---------- ---------- ----------
STOCKHOLDERS' EQUITY:
Preferred Stock 59,806 59,683 0% 59,443
Common Stock 54,646 54,420 0% 54,038
Retained Earnings 149,258 152,386 -2% 140,340
Accumulated Other
Comprehensive Income,
Net of Taxes 8,777 2,669 229% 1,239
---------- ---------- ----------
Total Stockholders'
Equity 272,487 269,158 1% 255,060
---------- ---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $3,377,563 $3,174,111 6% $2,450,011
========== ========== ==========
Nine Month Sept. 30, Twelve Month
Change 2008 Change
---------- ---------- ----------
ASSETS:
-------
Cash and Due from Banks 110% $ 54,017 162%
Federal Funds Sold and Other
Cash Equivalents 333% 3 3737983%
----------
Total Cash and Cash Equivalents 178% 54,020 403%
----------
Investment Securities Available
For Sale 144% 227,957 145%
Investment Securities Held
To Maturity -16% 143 -19%
----------
Total Investment Securities 144% 228,100 145%
----------
Loans
Real Estate Construction 4% 43,161 4%
Residential Real Estate 2% 73,913 7%
Commercial Real Estate 24% 1,489,867 27%
Commercial and Industrial 7% 405,726 2%
Consumer -31% 21,661 -25%
----------
Total Loans 19% 2,034,328 20%
Allowance For Loan Losses 86% (25,950) 111%
----------
Loans Receivable, Net of Allowance
for Loan Losses 18% 2,008,378 19%
----------
Accrued Interest Receivable 34% 10,168 32%
Due from Customers on Acceptances -89% 2,896 -91%
Other Real Estate Owned 134% 1,453 329%
Premises and Equipment 11% 11,377 9%
Federal Home Loan Bank (FHLB)
Stock, at Cost 20% 15,245 38%
Cash Surrender Value of Life
Insurance 3% 17,200 4%
Investment in Affordable Housing
Partnerships 36% 8,538 44%
Deferred Income Taxes -27% 10,570 -17%
Servicing Assets 43% 4,986 38%
Goodwill 0% 6,675 0%
FDIC Loss Share Indemnification 0% -- 0%
Other Assets 31% 7,529 30%
----------
TOTAL ASSETS 38% $2,387,135 41%
==========
LIABILITIES AND STOCKHOLDERS'
EQUITY:
----------------------------
LIABILITIES:
Non-interest Bearing Demand
Deposits 35% $ 295,451 26%
Savings and Interest Checking 38% 63,927 43%
Money Market Deposits 108% 448,038 68%
Time Deposits in denomination of
$100,000 or more 3% 765,311 21%
Other Time Deposits 158% 215,036 145%
----------
Total Deposits 47% 1,787,763 49%
----------
Federal Home Loan Bank borrowings
and Federal Funds Purchased 18% 300,000 7%
Acceptance Outstanding -89% 2,896 -91%
Junior Subordinated Debentures 0% 87,321 0%
Accrued Interest Payable 11% 7,914 -3%
Other Liabilities 32% 13,361 17%
----------
Total Liabilities 41% 2,199,255 41%
----------
STOCKHOLDERS' EQUITY:
Preferred Stock 1% -- N/A
Common Stock 1% 50,994 7%
Retained Earnings 6% 136,840 9%
Accumulated Other Comprehensive
Income, Net of Taxes 609% 46 19225%
----------
Total Stockholders' Equity 7% 187,880 45%
----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY 38% $2,387,135 41%
==========
CONSOLIDATED STATEMENT OF OPERATIONS
(dollars in thousands, except per share data) (unaudited)
Quarter Three Quarter One
Ended Month Ended Year
---------------------- ----- ---------- -----
Sept. 30, June 30, % Sept. 30, %
2009 2009 Change 2008 Change
---------- ---------- ----- ---------- -----
INTEREST INCOME
Interest and Fees
on Loans $ 39,389 $ 31,234 26% $ 34,719 13%
Interest on
Investment
Securities 4,876 3,194 53% 2,798 74%
Interest on Federal
Funds Sold 844 777 9% 63 1244%
---------- ---------- ----------
Total Interest
Income 45,109 35,205 28% 37,580 20%
---------- ---------- ----------
INTEREST EXPENSE
Deposits 12,994 11,776 10% 12,469 4%
FHLB Advances and
Other Borrowings 2,702 2,448 10% 3,697 -27%
---------- ---------- ----------
Total Interest
Expense 15,696 14,224 10% 16,166 -3%
---------- ---------- ----------
Net Interest Income
Before Provision for
Losses on Loans and
Loan Commitments 29,413 20,981 40% 21,414 37%
Provision for Losses
on Loans and Loan
Commitments 24,200 12,100 100% 3,400 612%
---------- ---------- ----------
Net Interest Income
After Provision for
Losses on Loans and
Loan Commitments 5,213 8,881 -41% 18,014 -71%
---------- ---------- ----------
NONINTEREST INCOME
Service Charges on
Deposits 3,314 3,125 6% 3,125 6%
Gain on Sale of
Loans 2,235 307 629% 410 445%
Gain from
Acquisition
of Mirae Bank -- 21,679 -100% -- 0%
Other 1,851 3,479 -47% 1,810 2%
---------- ---------- ----------
Total Noninterest
Income 7,400 28,590 -74% 5,345 38%
---------- ---------- ----------
NONINTEREST EXPENSES
Salaries and
Employee Benefits 7,120 5,988 19% 6,718 6%
Occupancy & Equipment 1,935 1,682 15% 1,576 23%
Data Processing 1,078 845 27% 785 37%
Other 4,688 5,561 -16% 3,228 45%
---------- ---------- ----------
Total Noninterest
Expenses 14,821 14,076 5% 12,307 20%
---------- ---------- ----------
Income (loss) Before
Income Taxes (2,208) 23,395 -109% 11,052 -120%
Income Tax (1,451) 9,649 -115% 4,184 -135%
---------- ---------- ----------
NET (LOSS) INCOME $ (757) $ 13,746 -106% $ 6,868 -111%
========== ========== ==========
Preferred Stock Cash
Dividend and
Accretion of
Preferred Stock
Discount 900 898 0% -- N/A
NET (LOSS) INCOME
AVAILABLE TO COMMON
SHAREHOLDERS $ (1,657) $ 12,848 -113% $ 6,868 -124%
========== ========== ==========
PER COMMON SHARE
INFORMATION
Basic Earnings (Loss)
Per Common Share $ (0.06) $ 0.44 -113% $ 0.23 -124%
Diluted Earnings
(Loss) Per Common
Share $ (0.06) $ 0.44 -113% $ 0.23 -124%
WEIGHTED-AVERAGE
COMMON SHARES
OUTSTANDING:
Basic 29,413,757 29,413,757 29,397,182
Diluted 29,413,757 29,421,247 29,508,503
CONSOLIDATED STATEMENT OF OPERATIONS
(dollars in thousands, except per share data) (unaudited)
Nine Months Ended One
---------------------- Year
Sept. 30, Sept. 30, %
2009 2008 Change
---------- ---------- -----
INTEREST INCOME
Interest and Fees on Loans $ 100,817 $ 104,014 -3%
Interest on Investment Securities 11,011 8,021 37%
Interest on Federal Funds Sold 1,910 192 895%
---------- ----------
Total Interest Income 113,738 112,227 1%
---------- ----------
INTEREST EXPENSE
Deposits 35,952 40,071 -10%
FHLB Advances and Other Borrowings 7,728 10,665 -28%
---------- ----------
Total Interest Expense 43,680 50,736 -14%
---------- ----------
Net Interest Income Before Provision
for Losses on Loans and Loan Commitments 70,058 61,491 14%
Provision for Losses on Loans and Loan
Commitments 43,000 6,200 594%
---------- ----------
Net Interest Income After Provision for
Losses on Loans and Loan Commitments 27,058 55,291 -51%
---------- ----------
NONINTEREST INCOME
Service Charges on Deposits 9,338 8,916 5%
Gain on Sale of Loans 1,711 2,192 -22%
Gain from Acquisition of Mirae Bank 21,679 -- N/A
Other 6,999 4,997 40%
---------- ----------
Total Noninterest Income 39,727 16,105 147%
---------- ----------
NONINTEREST EXPENSES
Salaries and Employee Benefits 19,315 21,349 -10%
Occupancy & Equipment 5,294 4,493 18%
Data Processing 2,750 2,320 19%
Other 13,525 8,923 52%
---------- ----------
Total Noninterest Expenses 40,884 37,085 10%
---------- ----------
Income (loss) Before Income Taxes 25,901 34,311 -25%
Income Tax 9,853 12,964 -24%
---------- ----------
NET INCOME $ 16,048 $ 21,347 -25%
========== ==========
Preferred Stock Cash Dividend and
Accretion of Preferred Stock Discount 2,718 -- N/A
NET INCOME AVAILABLE TO COMMON
SHAREHOLDERS $ 13,330 $ 21,347 -38%
========== ==========
PER COMMON SHARE INFORMATION
Basic Earnings Per Common Share $ 0.45 $ 0.73 -38%
Diluted Earnings Per Common Share $ 0.45 $ 0.73 -38%
WEIGHTED-AVERAGE COMMON SHARES
OUTSTANDING:
Basic 29,413,757 29,355,231
Diluted 29,422,528 29,402,212
SUMMARY OF FINANCIAL DATA
(dollars in thousands, except per share data) (unaudited)
AVERAGE BALANCES Quarter Ended
--------------------------------------------
Sept. 30, June 30, Sept. 30,
2009 2009 2008
---------- ---------- ----------
Average Assets $3,298,238 $2,691,508 $2,381,999
Average Equity 276,770 262,437 186,332
Average Net Loans
(includes LHFS) 2,393,513 2,060,306 1,979,435
Average Deposits 2,547,303 2,000,690 1,774,451
Average Time
Deposits in
denomination of
$100,000 or more 984,521 994,514 770,812
Average Interest
Earning Assets 3,062,707 2,517,899 2,219,745
Nine Months Ended
---------------------------------------------
Sept. 30, Sept. 30,
2009 2008
---------- ----------
Average Assets $2,840,993 $2,299,152
Average Equity 266,157 181,122
Average Net Loans
(includes LHFS) 2,162,801 1,906,985
Average Deposits 2,129,473 1,735,283
Average Time
Deposits in
denomination of
$100,000 or more 972,176 784,790
Average Interest
Earning Assets 2,650,310 2,143,678
PROFITABILITY Quarter Ended
---------------------------------------------
Sept. 30, June 30, Sept. 30,
2009 2009 2008
---------- ---------- -----------
Annualized Return
on Average Assets -0.09% 2.04% 1.15%
Annualized Return
on Average Equity -1.09% 20.95% 14.74%
Efficiency Ratio 40.26% 28.40% 45.99%
Annualized
Operating Expense/
Average Assets 1.80% 2.09% 2.07%
Annualized Net
Interest Margin 3.87% 3.36% 3.87%
Nine Months Ended
--------------------------------------------
Sept. 30, Sept. 30,
2009 2008
---------- ----------
Annualized Return
on Average Assets 0.75% 1.24%
Annualized Return
on Average Equity 8.04% 15.71%
Efficiency Ratio 37.24% 47.79%
Annualized
Operating Expense/
Average Assets 1.92% 2.15%
Annualized Net
Interest Margin 3.52% 3.82%
DEPOSIT COMPOSITION
- COMBINED
------------------- Quarter Quarter Quarter
Ended Cost Ended Cost Ended Cost
Sept. 30, of June 30, of Sept. 30, of
2009 Fund 2009 Fund 2008 Fund
---------- ----- ---------- ----- ---------- -----
Noninterest Bearing
Demand Deposits 14.0% 0.00% 15.0% 0.00% 16.5% 0.00%
Savings & Interest
Checking 3.4% 2.76% 3.3% 2.90% 3.6% 2.77%
Money Market
Deposits 28.2% 2.41% 24.2% 2.54% 25.1% 3.21%
Time Deposits of
$100,000 or More 34.8% 2.28% 46.4% 2.72% 42.8% 3.48%
Other Time Deposits 19.7% 2.56% 11.1% 3.35% 12.0% 3.69%
---------- ---------- ----------
Total Deposits 100.0% 2.04% 100.0% 2.35% 100.0% 2.81%
CAPITAL RATIOS Quarter Ended
--------------------------------------------
Sept. 30, June 30, Sept. 30,
2009 2009 2008
---------- ---------- ----------
Tier 1 Leverage
Ratio 10.03% 12.30% 10.19%
Tier 1 Risk-Based
Capital Ratio 14.29% 13.26% 11.68%
Total Risk-Based
Capital Ratio 15.82% 14.75% 14.01%
Total Shareholders'
Equity $ 272,487 $ 269,158 $ 187,879
Book Value Per
Common Share $ 7.23 $ 7.12 $ 6.39
Tangible Common
Equity Per Common
Share * $ 6.93 $ 6.81 $ 6.12
Tangible Common
Equity to Tangible
Assets ** 6.05% 6.33% 7.56%
* Tangible common equity excludes goodwill, other intangible assets,
and TARP preferred stock ** Tangible assets exclude goodwill and
intangible assets
** Tangible assets exclude goodwill and intangible assets
Reconciliation of GAAP financial measures to non-GAPP financial
measures:
Sept. 30, June 30, Dec. 31, Sept. 30,
2009 2009 2008 2008
---------- ---------- ---------- -----------
Total stockholders'
equity $ 272,487 $ 269,158 $ 255,060 $ 187,879
Preferred stock, net
of discount (59,806) (59,683) (59,443) --
Goodwill and other
intangible assets,
net (8,906) (9,145) (7,963) (8,038)
-----------------------------------------------
Tangible common equity $ 203,775 $ 200,330 $ 187,654 $ 179,841
===============================================
Total assets $3,377,563 $3,174,111 $2,450,011 $ 2,387,135
Goodwill and other
intangible assets,
net (8,906) (9,145) (7,963) (8,038)
-----------------------------------------------
Tangible assets $3,368,657 $3,164,966 $2,442,048 $ 2,379,096
===============================================
Common shares
outstanding 29,413,757 29,413,757 29,413,757 29,401,757
SUMMARY OF FINANCIAL DATA
-------------------------
(dollars in thousands,
except per share data)
(unaudited)
ALLOWANCE FOR LOAN
LOSSES Quarter Ended
---------------------------------------------------------------------
(net of SBA Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
guaranteed portion) 2009 2009 2009 2008 2008
-------- -------- -------- -------- --------
Balance at Beginning
of Period $ 38,758 $ 34,156 $ 29,437 $ 25,950 $ 23,494
Provision for Losses
on Loans 23,967 11,812 7,009 5,902 3,795
Recoveries on Loans
Previously
Charged-off 223 262 113 191 174
Less Charge Offs (8,213) (7,472) (2,403) (2,606) (1,513)
-------- -------- -------- -------- --------
Balance at End
of Period $ 54,735 $ 38,758 $ 34,156 $ 29,437 $ 25,950
======== ======== ======== ======== ========
Net Loan Charge-offs
/Average Total Loans 0.33% 0.34% 0.11% 0.12% 0.07%
Charge-offs/Average
Total Loans 0.34% 0.36% 0.12% 0.13% 0.08%
Allowance for Loan
Losses/Gross Loans 2.24% 1.62% 1.65% 1.43% 1.28%
Allowance for Loan
Losses/Legacy
Wilshire Loans 2.52% 1.83% 1.65% 1.43% 1.28%
Allowance for Loan
Losses/Non-accrual
Loans 70.72% 78.58% 116.71% 191.91% 196.10%
Allowance for Loan
Losses/
Non-performing
Loans 70.02% 78.38% 114.84% 189.28% 189.02%
Allowance for Loan
Losses/Total Assets 1.62% 1.22% 1.31% 1.20% 1.09%
Allowance for Loan
Losses/
Non-performing
Assets 64.85% 71.62% 94.82% 161.61% 170.73%
NON-PERFORMING ASSETS Quarter Ended
---------------------------------------------------------------------
(net of SBA Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
guaranteed portion) 2009 2009 2009 2008 2008
-------- -------- -------- -------- --------
Nonaccrual Loans:
Non-covered Loans $ 52,386 $ 35,032 $ 29,266 $ 15,339 $ 13,233
Covered Loans 25,007 14,290 -- -- --
-------- -------- -------- -------- --------
Total 77,393 49,322 29,266 15,339 13,233
Loans 90 days or more
past due and still
accruing:
Non-covered Loans -- 128 475 213 496
Covered Loans 772 -- -- -- --
-------- -------- -------- -------- --------
Total 772 128 475 213 496
-------- -------- -------- -------- --------
Total Nonperforming
Loans 78,165 49,450 29,741 15,552 13,729
-------- -------- -------- -------- --------
OREO and Repossessed
Vehicles:
Non-covered Loans 5,738 5,456 6,282 2,663 1,471
Covered Loans 500 500 -- -- --
-------- -------- -------- -------- --------
Total 6,238 5,956 6,282 2,663 1,471
Total Nonperforming
Assets:
Non-covered Assets 58,124 40,616 36,023 18,215 15,200
Covered Assets 26,279 14,790 -- -- --
-------- -------- -------- -------- --------
Total $ 84,403 $ 55,406 $ 36,023 $ 18,215 $ 15,200
======== ======== ======== ======== ========
Total Nonperforming
Loans/Gross Loans 3.20% 2.01% 1.43% 0.76% 0.67%
Total Nonperforming
Assets/Total Assets 2.50% 1.70% 1.38% 0.74% 0.64%
Performing Troubled Debt Restructured Loans
-------------------------------------------
Quarter Ended
----------------------------------------------------------
Sept. 30, 2009 June 30, 2009
---------------------------- ----------------------------
NON- TOTAL NON- TOTAL
COVERED COVERED LOANS COVERED COVERED LOANS
-------- -------- -------- -------- -------- --------
Construc-
tion $ -- $ -- $ -- $ 494 $ -- $ 494
Real Estate
Secured 10,494 54,868 65,362 16,147 20,722 36,869
Commerial &
Industrial -- 895 895
Consumer -- -- 0 -- 623 623
-------- -------- -------- -------- -------- --------
TOTAL
PERFORMING
TDR $ 10,494 $ 55,763 $ 66,257 $ 16,641 $ 21,345 $ 37,986
======== ======== ======== ======== ======== ========
LOAN ORIGINATION AMOUNT
-----------------------
Quarter Ended
--------------------------------------------------
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
2009 2009 2009 2008 2008
--------- -------- -------- -------- ---------
Total new loan
origination
amount, excluding
renewal $ 183,859 $159,334 $ 64,838 $ 72,412 $ 98,999
SBA new loan
origination
amount,
excluding renewal $ 15,592 $ 12,456 $ 6,276 $ 9,190 $ 10,218
ALLOWANCE FOR
LOAN LOSSES Nine Months Ended
------------- -------------------
(net of SBA Sept. 30, Sept. 30,
guaranteed 2009 2008
portion) --------- --------
Balance at
Beginning of
Period $ 29,437 $ 23,494
Provision for
Losses on Loans 42,788 3,795
Recoveries on
Loans Previously
Charged-off 598 174
Less Charge Offs (18,088) (1,513)
--------- --------
Balance at End
of Period $ 54,735 $ 25,950
========= ========
ALLOWANCE FOR
OFF-BALANCE
SHEET ITEMS
(non-covered
loan only) Nine Months Ended
------------- -------------------
(net of SBA Sept. 30, Sept. 30,
guaranteed 2009 2008
portion) --------- --------
Balance at
Beginning of
Period $ 1,243 $ 1,998
(Recapture of)
Provision for
Losses on
Off-balance Sheet
Items 212 (763)
--------- --------
Balance at End of
Period $ 1,455 $ 1,235
========= ========
LOAN ORIGINATION
AMOUNT Nine Months Ended
---------------- -------------------
Sept. 30, Sept. 30,
2009 2008
--------- --------
Total new loan
origination
amount, excluding
renewal $ 408,031 $445,678
SBA new loan
origination
amount,
excluding renewal $ 34,324 $ 54,139
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(dollars in thousands) (unaudited)
(Tax equivalent ratio)
For the Three Months Ended
------------------------------------------------------
September 30, 2009 June 30, 2008
-------------------------- --------------------------
Average Interest Average Average Interest Average
Balance Income/ Yield/ Balance Income/ Yield/
Expense Rate Expense Rate
INTEREST EARNING ASSETS
LOANS:
Real Estate
Loans $1,982,131 $31,400 6.34% $1,700,543 $25,886 6.09%
Commercial
Loans 440,140 6,821 6.20% 379,394 4,569 4.82%
Consumer
Loans 16,818 250 5.96% 18,693 256 5.47%
------------------- ----- ------------------- -----
Total
Loans -
Gross 2,439,089 38,471 6.31% 2,098,630 30,711 5.85%
Loan Fees
Toward
Yield 918 523
Allowance
for Loan
Losses &
Unearned
income (45,576) (38,324)
------------------- ----- ------------------- -----
Net Loans 2,393,513 39,389 6.58% 2,060,306 31,234 6.06%
------------------- ----- ------------------- -----
INVESTMENT
SECURITIES
AND OTHER
INTEREST-
EARNING
ASSETS:
Investment
Securities * 488,704 4,876 4.16% 324,302 3,194 4.14%
Federal
Funds Sold 180,490 844 1.87% 133,140 777 2.34%
------------------- ----- ------------------- -----
Total
Investment
Securities
and Other
Earning
Assets 669,194 5,720 3.54% 457,442 3,971 3.47%
------------------- ----- ------------------- -----
TOTAL
INTEREST-
EARNING
ASSETS $3,062,707 $45,109 5.92% $2,517,748 $35,205 5.62%
=================== ===== =================== =====
INTEREST BEARING LIABILITIES
INTEREST-
BEARING
DEPOSITS:
Money Market $ 677,234 $ 4,075 2.41% $ 436,066 $ 2,774 2.54%
NOW 21,481 50 0.93% 19,142 46 0.96%
Savings 62,090 527 3.39% 48,511 444 3.66%
Time
Deposits of
$100,000 or
More 984,521 5,611 2.28% 994,514 6,751 2.72%
Other Time
Deposits 427,234 2,731 2.56% 210,020 1,761 3.35%
------------------- ----- ------------------- -----
Total
Interest
Bearing
Deposits 2,172,560 12,994 2.39% 1,708,253 11,776 2.76%
------------------- ----- ------------------- -----
BORROWINGS:
FHLB
Advances
and Other
Borrowings 362,208 1,982 2.19% 321,434 1,622 2.02%
Junior
Subordinated
Debentures 87,321 720 3.30% 87,321 826 3.78%
------------------- ----- ------------------- -----
Total
Borrowings 449,529 2,702 2.40% 408,755 2,448 2.40%
------------------- ----- ------------------- -----
TOTAL INTEREST
BEARING
LIABILITIES $2,622,089 $15,696 2.40% $2,117,008 $14,224 2.69%
=================== ===== =================== =====
NET INTEREST
INCOME $29,413 $20,981
======= =======
NET INTEREST
SPREAD 3.52% 2.93%
===== =====
NET INTEREST
MARGIN 3.87% 3.36%
===== =====
For the Three Months Ended
--------------------------
September 30, 2008
--------------------------
Average Interest Average
Balance Income/ Yield/
Expense Rate
INTEREST EARNING ASSETS
LOANS:
Real Estate Loans $1,592,285 $27,661 6.95%
Commercial Loans 392,485 5,787 5.90%
Consumer Loans 23,540 375 6.37%
------------------- -----
Total Loans - Gross 2,008,310 33,823 6.74%
Loan Fees Toward Yield 896
Allowance for Loan Losses &
Unearned income (28,875)
------------------- -----
Net Loans 1,979,435 34,719 7.02%
------------------- -----
INVESTMENT SECURITIES AND
OTHER INTEREST-EARNING ASSETS:
Investment Securities * 228,825 2,798 4.96%
Federal Funds Sold 11,485 63 2.19%
------------------- -----
Total Investment Securities and
Other Earning Assets 240,310 2,861 4.83%
------------------- -----
TOTAL INTEREST-EARNING ASSETS $2,219,745 $37,580 6.78%
=================== =====
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money Market $ 439,080 $ 3,520 3.21%
NOW 21,144 72 1.36%
Savings 41,273 359 3.48%
Time Deposits of $100,000 or More 770,812 6,702 3.48%
Other Time Deposits 197,044 1,816 3.69%
------------------- -----
Total Interest Bearing Deposits 1,469,353 12,469 3.39%
------------------- -----
BORROWINGS:
FHLB Advances and Other Borrowings 309,576 2,570 3.32%
Junior Subordinated Debentures 87,321 1,127 5.16%
------------------- -----
Total Borrowings 396,897 3,697 3.73%
------------------- -----
TOTAL INTEREST BEARING LIABILITIES $1,866,250 $16,166 3.46%
=================== =====
NET INTEREST INCOME $21,414
=======
NET INTEREST SPREAD 3.32%
=====
NET INTEREST MARGIN 3.87%
=====
* Tax equivalent ratios for investment securities
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(dollars in thousands) (unaudited)
(Tax equivalent ratio)
For the Nine Months Ended
------------------------------------------------------
September 30, 2009 September 30, 2008
-------------------------- --------------------------
Average Interest Average Average Interest Average
Balance Income/ Yield/ Balance Income/ Yield/
Expense Rate Expense Rate
INTEREST
EARNING
ASSETS
LOANS:
Real Estate
Loans $1,780,320 $82,192 6.16% $1,543,442 $82,187 7.10%
Commercial
Loans 402,929 15,808 5.23% 365,086 17,158 6.27%
Consumer
Loans 18,867 807 5.70% 26,585 1,331 6.68%
-------------------------- --------------------------
Total
Loans -
Gross 2,202,116 98,807 5.98% 1,935,113 100,676 6.94%
Loan Fees
toward
Yield 2,010 3,338
Allowance
for Loan
Losses &
Unearned
income (39,315) (28,128)
-------------------------- --------------------------
Gross
Loans,
Net $2,162,801 $100,817 6.22% $1,906,985 $104,014 7.27%
-------------------------- --------------------------
INVESTMENT
SECURITIES
AND OTHER
INTEREST-
EARNING
ASSETS:
U.S.
Government
Agencies $367,260 $11,011 4.17% $226,727 $8,021 4.79%
Federal
Funds Sold 12,249 1,910 2.12% 9,966 192 2.57%
-------------------------- --------------------------
Total
Investment
Securities
and
Other
Earning
Assets 487,509 12,921 3.66% 236,693 8,213 4.70%
-------------------------- --------------------------
TOTAL
INTEREST-
EARNING
ASSETS $2,650,310 $113,738 5.75% $2,143,678 $112,227 6.98%
========================== ==========================
INTEREST
BEARING
LIABILITIES
INTEREST-
BEARING
DEPOSITS:
Money Market $493,160 $9,181 2.48% $409,726 $10,243 3.33%
NOW 20,066 141 0.94% 22,062 227 1.37%
Savings 51,347 1,364 3.54% 36,646 907 3.30%
Time
Deposits
of $100,000
or More 972,176 19,031 2.61% 784,790 23,222 3.95%
Other Time
Deposits 277,684 6,235 2.99% 178,342 5,472 4.09%
-------------------------- --------------------------
Total
Interest-
Bearing
Deposits 1,814,433 35,952 2.64% 1,431,566 40,071 3.73%
-------------------------- --------------------------
BORROWINGS:
FHLB
Advances
and Other
Borrowings 336,944 5,261 2.08% 269,818 6,969 3.44%
Junior
Subordinated
Debentures 87,321 2,467 3.77% 87,321 3,696 5.64%
-------------------------- --------------------------
Total
Borrowings 424,265 7,728 2.43% 357,139 10,665 3.98%
-------------------------- --------------------------
TOTAL INTEREST
BEARING
LIABILITIES $2,238,698 $43,680 2.60% $1,788,705 $50,736 3.78%
========================== ==========================
NET INTEREST
INCOME $70,058 $61,491
======= =======
NET INTEREST
SPREAD 3.15% 3.20%
===== =====
NET INTEREST
MARGIN 3.55% 3.83%
===== =====