LOS ANGELES, Jan. 31, 2008 (PRIME NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq:WIBC), the holding company for Wilshire State Bank, today reported profits of $26.8 million, or $0.91 per diluted share, in 2007, compared to $33.9 million, or $1.16 per diluted share, in 2006. For the fourth quarter of 2007, Wilshire earned $5.5 million, or $0.19 per diluted share, compared to $8.9 million, or $0.30 per diluted share, in the fourth quarter of 2006.
"We are excited to report that the recent promotions of Ms. Joanne Kim to Interim President and Chief Executive Officer from Chief Lending Officer and Executive Vice President, and Ms. Elaine Jeon to Senior Vice President and Interim Chief Financial Officer from Senior Vice President and Controller, have led to a very smooth and quick transition as we had planned for the upcoming year," said Steven Koh, Chairman of the Board. "We are continuing to successfully leverage their professional skills and experience as they have swiftly stepped into their leadership roles." The key officers of our senior management team have been with the bank for an extended period of time. They are familiar with our business strategies and operations, which help foster the stability and growth of the bank.
"The past year was a difficult year for both Wilshire Bancorp and the financial industry as a whole," said Joanne Kim, Interim President and CEO. "While our focus on higher core deposits and stricter lending policies led to more controlled loan and core deposit growth, there was a reduction in both loan sales and loan sale gains and an increase in loan loss provision, which resulted in lower profitability in 2007. While our profitability metrics are strong relative to industry averages, they are not indicative of the level of performance we have enjoyed for the past several years."
"We have been successful in operating under the modified balance sheet growth strategy that we implemented a year ago, and we have seen steady improvements despite weakening economic conditions in some of our markets," Kim continued. "Our outlook for 2008 is to continue focusing on balanced growth while mitigating asset risk."
Asset Quality
"Asset quality remains an important focus for us, and we place a strong emphasis on maintaining our strict underwriting guidelines in a highly competitive market," stated Elaine Jeon, SVP and Interim CFO. "While we have closely adhered to such stringent underwriting standards, we have seen an increase in non-performing loans, or NPLs, under the current market condition. With the help of our enhanced credit monitoring system, we will continue to keep a watchful eye on credit trends in our market and build our reserves for potential losses." Total NPLs were $10.6 million, or 0.59% of gross loans at the end of December 2007, compared to $8.3 million, or 0.48% of loans, at the end of September 2007, and $6.8 million, or 0.44% of loans, at the end of December 2006. The increase in non-performing loans from the previous quarter is primarily comprised of two loans: one for $3.0 million and the other for $0.5 million, of which the $3.0 million loan is expected to be paid off during the first quarter of 2008. Non-performing assets (NPAs) were $10.8 million, or 0.49% of total assets at year-end, compared to $9.0 million, or 0.43% of assets at the end of the third quarter of 2007, and $7.1 million, or 0.35% of assets at the end of December 2006.
Net charge-offs were $4.1 million in the fourth quarter and $10.9 million for the year in 2007. The provision for loan losses was $4.8 million in the fourth quarter, compared to $4.1 million in the preceding quarter and $0.9 million in the fourth quarter a year ago. The increase in loan loss provision is primarily due to growth in the loan portfolio and an increase in loan delinquencies. The allowance for loan losses was $21.6 million, representing 1.19% of gross loans and 203.55% of NPLs at December 31, 2007, versus $18.7 million loan loss allowance, representing 1.20% of gross loans and 272.38% of NPLs at December 31, 2006.
Balance Sheet
Net loans in the portfolio increased 16% to $1.79 billion at year end, compared to $1.54 billion a year earlier. Assets grew to $2.20 billion at December 31, 2007, up 9% from $2.01 billion a year ago. Consistent with our strategy of moderate balance sheet growth, net loans increased 5%, and total assets also increased 5% over the past three months. Real estate loans account for 77% of the loan portfolio, similar to last year. New loan originations totaled $191 million in the fourth quarter of 2007, compared to $233 million in the same quarter of 2006. For the full year, new loan originations totaled $944 million compared to $987 million in 2006.
"In 2007, our profitability was down considerably in comparison to 2006, as we adapted to a tougher business environment with fierce competition and market deterioration," Kim said. "However, we believe that the current initiatives to build reserves, improve asset quality and grow core deposits will positively impact our profitability in the foreseeable future."
"Despite stiff competition for deposits in our marketplace, we still managed to increase our core deposits in 2007 as planned," Kim said. "We will also continue to focus our efforts to decrease our dependence on CDs." Core deposits (excluding time certificates) increased $53 million from $778 million to $831 million in 2007, while time deposits decreased $41 million from $973 million to $932 million in the same period. Total deposits grew 1% to $1.76 billion at December 31, 2007, compared to $1.75 billion a year ago. Core deposits increased by 7% to $831 million over the course of the year while time deposits decreased 4% to $932 million for the same period.
At December 31 2007, shareholders' equity was $172 million, up 15% from $150 million a year earlier, and book value was $5.87 per share, compared to $5.12 a year prior. Capital ratios continue to exceed the "Well Capitalized" guidelines established by regulatory agencies. The leverage ratio was 10.36% at the end of 2007, compared to 10.41% at September 30, 2007, and 9.79% at the end of December 2006. The total Risk-based Capital Ratio was 14.72% compared to 15.06% at September 30, 2007 and 13.63% at December 31, 2006.
Income Statement and Performance Metrics
The net interest margin was 4.15% in the fourth quarter of 2007, down from 4.35% in the previous quarter and 4.34% in the fourth quarter a year ago. "The Federal Reserve reduced the federal funds rate again by 75 basis points and 50 basis points on January 22, 2008 and January 30, 2008, respectively, and further reductions are anticipated in the upcoming months. We expect the most recent reduction in the federal funds rate will further decrease our margins in the first quarter of 2008, since we are slightly asset-sensitive for this three-month time frame, as our deposit costs re-price slower than our earning assets," said Jeon. "However, we should begin to see improvements to our margin going forward in 2008 as we are more liability sensitive during the upcoming 12-month time frame, since more interest bearing liabilities will re-price than interest earnings assets." For year 2007, the average net interest margin was 4.28% compared to 4.51% in 2006.
In the fourth quarter of 2007, the weighted average yield on the loan portfolio decreased 42 basis points to 8.48% from 8.90% for the preceding quarter. This decline was largely due to the impact of the 50 basis point cut of the federal funds rate on September 18, and of the 25 basis point rate cut on October 31, 2007. For the year, the weighted average yield on the loan portfolio decreased 30 basis points to 8.78% from 9.08% in 2006.
The weighted average cost of interest-bearing deposits for the fourth quarter decreased 24 basis points to 4.66% from 4.90% for the preceding quarter. The decrease was partially attributable to lower average time deposits balances, but also due to the 50 basis point rate cut of the federal funds rate on September 18, and the 25 basis point rate cut on October 31, 2007. At the end of 2007, time deposits accounted for 53% of total deposits, compared to 55% of total deposits at the end of 2006. For the year, the weighted average cost of interest bearing deposits increased 18 basis points to 4.84% from 4.66% in 2006.
In the fourth quarter of 2007, interest income was up 5% while interest expense was also up 5% over the same quarter of 2006. Net interest income grew 4% to $20.5 million, from $19.8 million in the fourth quarter of 2006. Other operating income was down 14% to $5.8 million, compared to $6.7 million in the fourth quarter a year ago, primarily due to the decrease of SBA loan sales in the fourth quarter of 2007.
"Due mainly to a weaker economic environment, overall SBA loan production levels decreased 7% in the fourth quarter of 2007 compared to the same period last year," said Jeon. "In addition, the average sales premium of SBA 7(a) guaranteed loans was lowered in 2007 compared to 2006. The lowered sales premium of SBA 7(a) guaranteed loans resulted in a 36% decline in gain on sale of loans to $1.8 million, which included $0.9 million in gains from the sale of unguaranteed portions, as compared with the $2.8 million gain in fourth quarter of 2006 that included $1.7 million in gains from the sale of the unguaranteed portions." Other operating expenses were up slightly to $12.7 million, compared to $11.2 million in the fourth quarter a year ago. This increase is largely due to additional overhead expenses associated with the integration of the New Jersey branch and the new Rancho Cucamonga branch.
In 2007, net interest income increased 6% to $81.4 million, from $76.6 million last year. Other operating income was $22.6 million, a 14% decrease from $26.4 million in 2006, mainly due to the decrease of SBA loan sales in 2007. Other operating expenses in 2007 were up 9% to $44.8 million, compared to $41.2 million in 2006.
"Over the past year, our continued expansion into the New York/New Jersey area has been successful with moderate loan and deposit production, and this area remains the primary focus of our geographic expansion," said Kim. "We added to our existing New York area footprint in July by acquiring a branch in Fort Lee, New Jersey, and we are scheduled to open our second New Jersey branch in Palisades Park during the second half of 2008. We believe these areas are superb locations for increasing our core deposits and market share. Additionally, we opened a new branch in Rancho Cucamonga, California, in December 2007, bringing our branch network to 20 locations."
"We have strived to keep our overall operating expenses in line throughout our New York and New Jersey expansion. Nonetheless, Salaries and Employee Benefits have increased 24% and 15% respectively in the fourth quarter of 2007 when compared to the previous quarter or the same quarter a year ago," Kim added. "Although expenses were up compared to the fourth quarter last year, we expect to get back to an efficiency ratio range around 42% to 45% after the implementation phase of the expansion and the new branches became operational in their full capacity." The efficiency ratio was 48.12% in the fourth quarter of 2007, compared to 42.32% in the same quarter a year ago. The annual efficiency ratio was 43.14% in 2007 compared to 40.04% a year ago.
Wilshire's performance measures are in line with the banking industry, and they have returned to more normal levels relative to a year ago. For the year of 2007, return on average equity (ROE) was 16.33% and the return on average assets (ROA) was 1.31%, compared to 25.51% and 1.85%, respectively, in 2006. In the fourth quarter of 2007, ROE was 12.76% and ROA was 1.03%, compared to 24.18% and 1.81%, respectively, in the fourth quarter of 2006.
Conference Call and Company Information
Management will host its quarterly conference call today, January 31st, at 1:30 p.m. PST (4:30 p.m. EST). Investment professionals are invited to participate in the call by dialing 1-800-320-2978 using passcode 94976155. Current and prospective shareholders are also invited to listen to the live or archived call at www.wilshirebank.com or www.earnings.com.
Wilshire Bancorp and its subsidiary, Wilshire State Bank, have received significant accolades for growth, performance and profitability from Wall Street and the banking industry:
* January 2008 - US Banker ranked Wilshire 21st on its Top 25 Banks of
2008 based on one-year average ROE.
Ranked ninth by US Banker on its list of Top 10 Mid-Tier Banks of
2008, based on one-year average ROE.
* April 2007 - ranked fourth by US Banker on its list of Top 200
Mid-Tier Banks, based on three-year average ROE.
* September 2006 - ranked fourth by US Banker on its list of Top 100
Mid-Tier Banks, based on three-year average ROE.
Fortune named Wilshire the 70th fastest-growing public company in
the nation.
Ranked second by five-year total return of all banks and thrifts
nationally by Ryan Beck & Co.
* August 2006 - Sandler O'Neill's Bank and Thrift Sm-All Stars - Class
of 2006 recognized 34 of the 573 publicly traded institutions with
assets of less than $2 billion, focusing on growth, profitability,
credit quality and capital strength. Wilshire was one of only nine
companies that Sandler has named each year since the list's
inception in 2004.
* April 2006 - Wilshire Bancorp was added to the Standard & Poor's
SmallCap 600 index.
* January 2006 - US Banker named Wilshire fourth in its All-Star
Lineup - The Top 20 Banks of 2006, based on ROE.
Headquartered in Los Angeles, Wilshire State Bank operates 20 branch offices in California, Texas, New Jersey and New York, and seven loan production offices in Seattle, Las Vegas, Houston, Atlanta, Denver, Annandale (in Virginia), and Fort Lee (in New Jersey) and is an 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.
CONSOLIDATED STATEMENT OF OPERATIONS
------------------------------------
(unaudited) (dollars in thousands, except per share data)
Quarter Quarter Quarter
Ended Three Ended One Ended
Dec. 31, Month Sept. 30, Year Dec. 31,
2007 Change 2007 Change 2006
---------- ------ ---------- ------ ----------
INTEREST INCOME
Interest on
Loans & Leases $ 37,162 0% $ 37,093 7% $ 34,570
Interest on
Securities 2,697 0% 2,698 17% 2,298
Interest on
Federal Funds
Sold 155 -77% 678 -89% 1,389
---------- ---------- ----------
Total Interest
Income 40,014 -1% 40,469 5% 38,257
---------- ---------- ----------
INTEREST EXPENSE
Deposits 16,397 -8% 17,763 -5% 17,200
FHLB Advances
and Other 3,093 75% 1,768 138% 1,300
---------- ---------- ----------
Total Interest
Expense 19,490 0% 19,531 5% 18,500
---------- ---------- ----------
Net Interest
Income 20,524 -2% 20,938 4% 19,757
Provision for
Loan Losses 4,750 16% 4,100 405% 940
---------- ---------- ----------
Net Interest
Income After
Provision for
Loan Losses 15,774 -6% 16,838 -16% 18,817
---------- ---------- ----------
OTHER OPERATING
INCOME
Fees on Deposits 2,592 8% 2,398 7% 2,413
Gain on Sales
of Loans 1,774 12% 1,584 -36% 2,782
Other 1,467 18% 1,246 -5% 1,552
---------- ---------- ----------
Total Other
Operating Income 5,833 12% 5,228 -14% 6,747
---------- ---------- ----------
OPERATING EXPENSES
Salaries and
Employee
Benefits 7,209 24% 5,827 15% 6,276
Occupancy &
Equipment 1,415 7% 1,317 7% 1,329
Other 4,059 4% 3,903 12% 3,611
---------- ---------- ----------
Total Other
Operating
Expenses 12,683 15% 11,047 13% 11,216
---------- ---------- ----------
Income Before
Taxes 8,924 -19% 11,019 -38% 14,348
Income Tax 3,425 -22% 4,375 -37% 5,463
---------- ---------- ----------
NET INCOME $ 5,499 -17% $ 6,644 -38% $ 8,885
========== ========== ==========
Per Share Data
Basic Earnings
Per Common
Share $ 0.19 -17% $ 0.23 -38% $ 0.31
Earnings Per
Share -
Assuming
Dilution $ 0.19 -17% $ 0.23 -38% $ 0.30
Weighted Average
Shares
Outstanding 29,291,262 29,350,499 29,175,540
Weighted Average
Shares
Outstanding
Including
Dilutive Effect
Of Stock Options 29,386,880 29,454,770 29,467,734
CONSOLIDATED STATEMENT OF OPERATIONS
------------------------------------
(unaudited) (dollars in thousands, except per share data)
Twelve Twelve
Months Months
Ended One Ended
Dec. 31, Year Dec. 31,
2007 Change 2006
---------- ----- ----------
INTEREST INCOME
Interest on Loans & Leases $ 144,740 13% $ 127,840
Interest on Securities 9,975 15% $ 8,674
Interest on Federal Funds Sold 2,921 -40% $ 4,886
---------- ----------
Total Interest Income 157,636 11% $ 141,400
---------- ----------
INTEREST EXPENSE
Deposits 68,766 17% $ 58,943
FHLB Advances and Other 7,520 28% $ 5,880
---------- ----------
Total Interest Expense 76,286 18% $ 64,823
---------- ----------
Net Interest Income 81,350 6% $ 76,577
Provision for Loan Losses 14,980 150% $ 6,000
---------- ----------
Net Interest Income After Provision
for Loan Losses 66,370 -6% $ 70,577
---------- ----------
OTHER OPERATING INCOME
Fees on Deposits 9,781 2% $ 9,554
Gain on Sales of Loans 7,502 -36% $ 11,642
Other 5,301 2% $ 5,204
---------- ----------
Total Other Operating Income 22,584 -14% $ 26,400
---------- ----------
OPERATING EXPENSES
Salaries and Employee Benefits 24,437 3% $ 23,823
Occupancy & Equipment 5,302 16% $ 4,554
Other 15,100 17% $ 12,855
---------- ----------
Total Other Operating Expenses 44,839 9% $ 41,232
---------- ----------
Income Before Taxes 44,115 -21% $ 55,745
Income Tax 17,309 -21% $ 21,803
---------- ----------
NET INCOME $ 26,806 -21% $ 33,942
========== ==========
Per Share Data
Basic Earnings Per Common Share $ 0.91 -22% $ 1.17
Earnings Per Share - Assuming
Dilution $ 0.91 -21% $ 1.16
Weighted Average Shares Outstanding 29,339,454 28,986,217
Weighted Average Shares Outstanding
Including Dilutive Effect Of
Stock Options 29,449,211 29,330,732
CONSOLIDATED BALANCE SHEET
--------------------------
(unaudited)(dollars in thousands, except share data)
Three One
Dec. 31, Month Sept. 30, Year Dec. 31,
2007 Change 2007 Change 2006
---------- ------ ---------- ------ ----------
ASSETS:
Noninterest-Earning
Demand Deposits
and Cash on Hand $ 82,506 -1% $ 83,418 10% $ 75,244
Federal Funds
Sold and Other
Cash Equivalents 10,003 -50% 20,004 -92% 130,003
---------- ---------- ----------
Total Cash and
Cash Equivalents 92,509 -11% 103,422 -55% 205,247
---------- ---------- ----------
Interest-Bearing
Deposits in
Other Financial
Institutions -- 0% -- 0% --
Securities
Available For Sale 224,256 15% 195,333 34% 167,838
Securities Held
To Maturity 7,384 -35% 11,390 -49% 14,621
---------- ---------- ----------
Total Securities 231,640 12% 206,723 27% 182,459
---------- ---------- ----------
Loans
R/E Construction 59,443 -3% 61,167 28% 46,285
Real Estate Loans 1,385,986 5% 1,322,371 17% 1,183,030
Commercial 330,052 9% 302,679 19% 278,165
Consumer 33,569 -13% 38,408 -37% 53,059
---------- ---------- ----------
Total Loans 1,809,050 5% 1,724,625 16% 1,560,539
Allowance For
Loan Losses (21,579) 3% (20,902) 16% (18,654)
---------- ---------- ----------
Loans & Leases
Receivable, Net 1,787,471 5% 1,703,723 16% 1,541,885
---------- ---------- ----------
Accrued Interest
Receivable 10,062 -3% 10,394 0% 10,049
Due from Customers
on Acceptances 3,377 -16% 4,003 42% 2,385
Other Real Estate
Owned 133 -78% 612 -3% 138
Premises and
Equipment 10,960 4% 10,542 5% 10,465
Federal Home Loan
Bank (FHLB)
Stock, at Cost 8,695 1% 8,582 15% 7,542
Cash Surrender
Value of Life
Insurance 16,228 1% 16,079 4% 15,636
Goodwill 6,675 0% 6,675 0% 6,675
Core Deposit
Intangible 1,359 -3% 1,402 -11% 1,532
Other Assets 27,596 -4% 28,650 13% 24,471
---------- ---------- ----------
TOTAL ASSETS $2,196,705 5% $2,100,807 9% $2,008,484
========== ========== ==========
LIABILITIES AND
STOCKHOLDERS'
EQUITY:
LIABILITIES:
Non-interest
Bearing Demand
Deposits $ 314,114 2% $ 308,446 -2% $ 319,311
Savings & NOW
Deposits 53,079 -1% 53,619 4% 51,269
Money Market
Deposits 464,280 -6% 491,859 14% 408,354
Time Deposits in
denomination of
$100,000 or more 788,883 4% 755,159 -3% 812,106
Other Time
Deposits 142,715 3% 139,074 -11% 160,933
---------- ---------- ----------
Total Deposits 1,763,071 1% 1,748,157 1% 1,751,973
---------- ---------- ----------
FHLB Advances 150,000 114% 70,000 650% 20,000
Acceptances
Outstanding 3,377 -16% 4,003 42% 2,385
Subordinated
Debentures 87,321 0% 87,321 42% 61,547
Accrued Interest
and Other
Liabilities 21,150 -9% 23,178 -8% 22,944
---------- ---------- ----------
Total Liabilities 2,024,919 5% 1,932,659 9% 1,858,849
---------- ---------- ----------
STOCKHOLDERS'
EQUITY:
Common Stock -
No Par
Value-Authorized,
80,000,000 Shares
Issued and
Outstanding
29,380,736,
29,371,696 and
29,197,420 Shares,
Respectively 50,895 0% 50,811 4% 49,123
Less Treasury
Stock, at Cost;
127,425 , 39,625,
and 0 Shares,
Respectively (1,262) 207% (410) 0% --
Retained Earnings 121,778 3% 117,742 21% 100,920
Accumulated Other
Comprehensive
Income, Net of
Taxes 375 6773% 5 -192% (408)
---------- ---------- ----------
Total
Stockholders'
Equity 171,786 2% 168,148 15% 149,635
---------- ---------- ----------
TOTAL LIABILITIES
AND STOCKHOLDERS'
EQUITY $2,196,705 5% $2,100,807 9% $2,008,484
========== ========== ==========
AVERAGE BALANCES
----------------
(unaudited) (dollars in thousands)
Quarter Quarter Quarter Year Year
Ended Ended Ended Ended Ended
Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
2007 2007 2006 2007 2006
---------- ---------- ---------- ---------- ----------
Average
Assets $2,132,176 $2,075,790 $1,960,648 $2,049,334 $1,833,368
Average
Equity 172,355 167,015 146,982 164,137 133,043
Average Net
Loans
(includes
LHFS) 1,753,771 1,667,899 1,520,017 1,649,130 1,407,250
Average
Deposits 1,716,748 1,772,434 1,706,855 1,736,167 1,575,049
Average Time
Deposits in
denomination
of $100,000
or more 738,770 780,463 791,801 776,697 706,730
Average
Interest
Earning
Assets 1,979,552 1,926,720 1,820,738 1,902,130 1,699,448
CONSOLIDATED FINANCIAL RATIOS
-----------------------------
(unaudited) (dollars in thousands, except per share data)
Quarter Quarter Quarter Year Year
Ended Ended Ended Ended Ended
Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
2007 2007 2006 2007 2006
---------- ---------- ---------- ---------- ----------
Annualized
Return on
Average
Assets 1.03% 1.28% 1.81% 1.31% 1.85%
Annualized
Return on
Average
Equity 12.76% 15.91% 24.18% 16.33% 25.51%
Efficiency
Ratio 48.12% 42.22% 42.32% 43.14% 40.04%
Annualized
Operating
Expense/
Average
Assets 2.38% 2.13% 2.29% 2.19% 2.25%
Annualized
Net Interest
Margin 4.15% 4.35% 4.34% 4.28% 4.51%
Tier 1
Leverage
Ratio 10.36% 10.41% 9.79%
Tier 1
Risk-Based
Capital
Ratio 11.95% 12.18% 11.81%
Total
Risk-Based
Capital
Ratio 14.72% 15.06% 13.63%
Book Value
Per Share $ 5.87 $ 5.73 $ 5.12
ALLOWANCE FOR LOAN LOSSES
-------------------------
(unaudited) (dollars in thousands)
Quarter Quarter Quarter Year Year
Ended Ended Ended Ended Ended
Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
2007 2007 2006 2007 2006
---------- ---------- ---------- ---------- ----------
Balance at
Beginning
of Period $ 20,902 $ 19,378 $ 18,417 $ 18,654 $ 13,999
Provision
for Loan
Losses 4,750 4,100 940 14,980 6,000
Allowance
for loan
losses
acquired in
LBNY
acquisition -- -- -- -- 601
Less Charge
Offs (Net
Recoveries) 4,140 2,356 950 10,948 1,842
Less:
Provision for
(recapture
of) losses
on off
balance
sheet item (67) 220 (247) 1,107 104
---------- ---------- ---------- ---------- ----------
Balance at
End of
Period $ 21,579 $ 20,902 $ 18,654 $ 21,579 $ 18,654
========== ========== ========== ========== ==========
Loan Loss
Allowance/
Gross Loans 1.19% 1.21% 1.20%
Loan Loss
Allowance/
Non-performing
Loans 203.55% 251.48% 272.38%
Loan Loss
Allowance/
Total Assets 0.98% 0.99% 0.93%
Loan Loss
Allowance/
Non-performing
Assets 200.08% 232.71% 263.42%
NON-PERFORMING ASSETS
---------------------
(unaudited) (dollars in thousands) (net of guaranteed portion)
Dec. 31, Sept. 30, Dec. 31,
2007 2007 2006
---------- ---------- ----------
Accruing
Loans - 90
Days Past
Due 308 135 1,047
Non-accrual
Loans 10,294 8,177 5,802
Restructured
Loans 0 0 0
---------- ---------- ----------
Total
Non-performing
Loans 10,602 8,312 6,849
========== ========== ==========
Total
Non-performing
Loans/Gross
Loans 0.59% 0.48% 0.44%
Repossessed
Vehicles 50 58 95
OREO 133 612 138
---------- ---------- ----------
Total
Non-performing
Assets $ 10,785 $ 8,982 $ 7,082
========== ========== ==========
Total
Non-performing
Assets/
Total Assets 0.49% 0.43% 0.35%
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
---------------------------------------
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
--------------------------------------------------------------
(unaudited)(dollars in thousands)
For the Three Months Ended
-----------------------------------------------------
December 31, 2007 September 30, 2007
-----------------------------------------------------
Average Interest Average Average Interest Average
Balance Income/ Yield/ Balance Income/ Yield/
Expense Rate Expense Rate
INTEREST
EARNING
ASSETS
LOANS:
Real Estate
Loans $1,425,877 $28,478 7.99% $1,346,325 $27,774 8.25%
Commercial
Loans 320,417 6,628 8.27% 308,544 6,792 8.81%
Consumer
Loans 35,113 660 7.52% 40,600 789 7.77%
------------------- ---- ------------------- ----
Total
Loans -
Gross 1,781,407 35,766 8.03% 1,695,469 35,355 8.34%
Loan Fees
Toward Yield 1,396 1,738
Unearned
Income on
Loans (6,663) (7,492)
Allowance for
Loan Losses (20,973) (20,078)
------------------- ---- ------------------- ----
Net Loans $1,753,771 $37,162 8.48% $1,667,899 $37,093 8.90%
=================== ==== =================== ====
INVESTMENT
SECURITIES
AND OTHER
INTEREST-
EARNING ASSETS:
U.S.
Government
Agencies $ 188,421 $ 2,405 5.11% $ 181,787 $ 2,354 5.18%
Other
Investment
Securities 25,363 292 4.60% 27,433 344 5.02%
Federal
Funds Sold,
REPO, and
Other Cash
Equivalent 11,997 155 5.17% 49,601 678 5.47%
Interest
Earning
Deposits 0 0 0.00% 0 0 0.00%
------------------- ---- ------------------- ----
Total
Investment
Securities
and Other
Earning
Assets $ 225,781 $ 2,852 5.05% $ 258,821 $ 3,376 5.22%
=================== ==== =================== ====
TOTAL INTEREST-
EARNING ASSETS $1,979,552 $40,014 8.09% $1,926,720 $40,469 8.40%
=================== ==== =================== ====
INTEREST
BEARING
LIABILITIES
INTEREST-BEARING
DEPOSITS:
Money Market $ 478,153 $ 5,294 4.43% $ 474,122 $ 5,475 4.62%
NOW 24,613 102 1.65% 22,317 70 1.26%
Savings 31,144 218 2.80% 29,790 186 2.50%
Time Deposits
of $100,000
or More 738,770 9,232 5.00% 780,462 10,276 5.27%
Other Time
Deposits 133,567 1,551 4.65% 142,877 1,756 4.92%
------------------- ---- ------------------- ----
Total
Interest
Bearing
Deposits $1,406,247 $16,397 4.66% $1,449,568 $17,763 4.90%
=================== ==== =================== ====
BORROWINGS:
FHLB Advances
and Other
Borrowings $ 130,880 $ 1,469 4.49% $ 24,250 $ 212 3.50%
Junior
Subordinated
Debentures 87,321 1,624 7.44% 84,800 1,556 7.34%
------------------- ---- ------------------- ----
Total
Borrowings $ 218,201 $ 3,093 5.67% $ 109,050 $ 1,768 6.48%
=================== ==== =================== ====
TOTAL INTEREST
BEARING
LIABILITIES $1,624,448 $19,490 4.80% $1,558,618 $19,531 5.01%
=================== ==== =================== ====
NET INTEREST
INCOME $20,524 $20,938
======= =======
NET INTEREST
SPREAD 3.29% 3.39%
==== ====
NET INTEREST
MARGIN 4.15% 4.35%
==== ====
-------------------------
For the
Three Months Ended
-------------------------
December 31, 2006
-------------------------
Average Interest Average
Balance Income/ Yield/
Expense Rate
INTEREST EARNING ASSETS
LOANS:
Real Estate Loans $1,219,502 $25,947 8.51%
Commercial Loans 276,253 6,286 9.10%
Consumer Loans 52,677 1,086 8.24%
------------------- ----
Total Loans - Gross 1,548,432 33,319 8.61%
Loan Fees Toward Yield 1,251
Unearned Income on Loans (10,212)
Allowance for Loan Losses (18,201)
------------------- ----
Net Loans $1,520,019 $34,570 9.10%
=================== ====
INVESTMENT SECURITIES AND OTHER
INTEREST-EARNING ASSETS:
U.S. Government Agencies $ 175,028 $ 2,033 4.65%
Other Investment Securities 22,504 263 4.67%
Federal Funds Sold, REPO, and
Other Cash Equivalent 102,977 1,389 5.40%
Interest Earning Deposits 212 2 3.77%
------------------- ----
Total Investment Securities and
Other Earning Assets $ 300,721 $ 3,687 4.90%
=================== ====
TOTAL INTEREST-EARNING ASSETS $1,820,740 $38,257 8.40%
=================== ====
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money Market $ 385,823 $ 4,343 4.50%
NOW 19,719 57 1.16%
Savings 29,007 120 1.66%
Time Deposits of $100,000 or More 791,801 10,684 5.40%
Other Time Deposits 162,876 1,996 4.90%
------------------- ----
Total Interest Bearing Deposits $1,389,226 $17,200 4.95%
=================== ====
BORROWINGS:
FHLB Advances and Other Borrowings $ 20,064 $ 186 3.72%
Junior Subordinated Debentures 61,547 1,114 7.24%
------------------- ----
Total Borrowings $ 81,611 $ 1,300 6.37%
=================== ====
TOTAL INTEREST BEARING LIABILITIES $1,470,837 $18,500 5.03%
=================== ====
NET INTEREST INCOME $19,757
=======
NET INTEREST SPREAD 3.37%
====
NET INTEREST MARGIN 4.34%
====
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
---------------------------------------
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
--------------------------------------------------------------
(unaudited)(dollars in thousands)
For the Twelve Months Ended
-------------------------------------------------------
December 31, 2007 December 31, 2006
-------------------------------------------------------
Average Interest Average Average Interest Average
Balance Income/ Yield/ Balance Income/ Yield/
Expense Rate Expense Rate
INTEREST
EARNING
ASSETS
LOANS:
Real Estate
Loans $1,323,926 $107,794 8.14% $1,143,352 $ 96,212 8.41%
Commercial
Loans 309,228 26,931 8.71% 240,474 21,571 8.97%
Consumer
Loans 43,059 3,378 7.84% 50,571 4,143 8.19%
-------------------- ---- -------------------- ----
Total
Loans -
Gross 1,676,213 138,103 8.24% 1,434,397 121,926 8.50%
Loan Fees
toward Yield 6,637 5,914
Unearned
Income on
Loans (7,872) (10,884)
Allowance for
Loan Losses (19,210) (16,263)
-------------------- ---- -------------------- ----
Gross
Loans,
Net $1,649,131 $144,740 8.78% $1,407,250 $127,840 9.08%
==================== ==== ==================== ====
INVESTMENT
SECURITIES
AND OTHER
INTEREST-
EARNING ASSETS:
U.S.
Government
Agencies $ 173,581 $ 8,627 4.97% $ 173,985 $ 7,687 4.42%
Other
Investment
Securities 27,310 1,348 4.94% 20,588 969 4.71%
Federal
Funds Sold,
REPO, and
Other Cash
Equivalent 54,026 2,921 5.41% 97,198 4,886 5.03%
Interest
Earning
Deposits 0 0 0.00% 427 18 4.26%
-------------------- ---- -------------------- ----
Total
Investment
Securities
and Other
Earning
Assets $ 254,917 $ 12,896 5.06% $ 292,198 $ 13,560 4.64%
==================== ==== ==================== ====
TOTAL INTEREST-
EARNING
ASSETS $1,904,048 $157,636 8.29% $1,699,448 $141,400 8.32%
==================== ==== ==================== ====
INTEREST
BEARING
LIABILITIES
INTEREST-BEARING
DEPOSITS:
Money
Market $ 445,130 $ 20,090 4.51% $ 356,602 $ 15,151 4.25%
NOW 22,511 297 1.32% 20,853 245 1.18%
Savings 29,816 710 2.38% 25,093 332 1.32%
Time Deposits
of $100,000
or More 776,697 40,516 5.22% 706,729 36,082 5.11%
Other Time
Deposits 146,837 7,153 4.87% 155,741 7,133 4.58%
-------------------- ---- -------------------- ----
Total
Interest-
Bearing
Deposits $1,420,991 $ 68,766 4.84% $1,265,018 $ 58,943 4.66%
==================== ==== ==================== ====
BORROWINGS:
FHLB Advances
and Other
Borrowings $ 49,408 $ 2,067 4.18% $ 39,755 $ 1,543 3.88%
Junior
Subordinated
Debentures 73,904 5,453 7.38% 61,547 4,337 7.05%
-------------------- ---- -------------------- ----
Total
Borrow-
ings $ 123,312 $ 7,520 6.10% $ 101,302 $ 5,880 5.80%
==================== ==== ==================== ====
TOTAL INTEREST
BEARING
LIABILITIES $1,544,303 $ 76,286 4.94% $1,366,320 $ 64,823 4.74%
==================== ==== ==================== ====
NET INTEREST
INCOME $ 81,350 $ 76,577
======== ========
NET INTEREST
SPREAD 3.35% 3.58%
==== ====
NET INTEREST
MARGIN 4.28% 4.51%
==== ====
LOAN MIX: Quarter Ended Quarter Ended Year Ended
(Unaudited) Dec. 31, Sept. 30, Dec. 31,
2007 2007 2006
------------- ------------- -------------
R/E Constructions 3.3% 3.5% 3.0%
Real Estate Loans 76.6% 76.7% 75.8%
Commercial Loans 18.2% 17.6% 17.8%
Consumer Loans 1.9% 2.2% 3.4%
----- ----- -----
Total Gross Loans 100.0% 100.0% 100.0%
===== ===== =====
DEPOSIT MIX:
(Unaudited)
Noninterest Bearing
Demand Deposits 17.8% 17.6% 18.2%
Savings & NOW Deposits 3.0% 3.1% 2.9%
Money Market Deposits 26.3% 28.1% 23.3%
Time Deposits of
$100,000 or More 44.8% 43.2% 46.4%
Other Time Deposits 8.1% 8.0% 9.2%
----- ----- -----
Total Deposits 100.0% 100.0% 100.0%
===== ===== =====
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.