LOS ANGELES, July 22, 2008 (PRIME NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq:WIBC), the holding company for Wilshire State Bank, reported diluted earnings per share of $0.25 for the second quarter 2008, compared with $0.24 in the first quarter 2008 and $0.25 in the second quarter 2007. Net income was $7.43 million, compared with $7.05 million in prior quarter and $7.35 million in the second quarter 2007.
"Wilshire continued to strengthen its franchise during the second quarter against the continued backdrop of challenging credit market conditions," stated Ms. Joanne Kim, President and CEO. "Our net income growth and earnings per share of $0.25 were driven by strong credit quality management, evidenced by $1.7 million recovery and solid loan growth. While we are still affected by weaker economic conditions, we are confident that Wilshire is well positioned to continue to expand through the current challenging credit cycle."
SECOND QUARTER 2008 FINANCIAL HIGHLIGHTS:
Compared to second quarter 2007 * Net income increased to $7.43 million, compared with $7.35 million in the second quarter a year ago. * Average loan portfolio increased 18% to $1.94 billion, compared with $1.65 billion a year ago. * Average interest-earning assets increased 16% to $2.15 billion, compared with $1.85 billion a year ago. * Deposit fee income increased 21% to $3.0 million, compared with $2.5 million in 2Q07. * Earning per share remained the same at $0.25, compared with 2Q07. Compared to first quarter 2008 * Net income increased to $7.43 million, compared with $7.05 million in the previous quarter. * Average loan portfolio increased 5% to $1.94 billion, compared with $1.86 billion in the first quarter. * Average deposits increased 1% to $1.73 billion, compared with $1.70 billion at March 31, 2008. * EPS increased to $0.25 from $0.24 in 1Q08. * ROA and ROE increased to 1.29% and 16.36%, compared with 1.28% and 16.08%, respectively in 1Q08. * Efficiency ratio improved to 48.4% from 49.1% in 1Q08.
CREDIT QUALITY
"Managing the challenges of the current credit cycle continues to be our top priority. We have maintained our emphasis on sticking to our higher credit standards in the highly competitive markets that we serve," Ms. Kim said. "We have tighter credit monitoring controls in place than we did a year ago, and are keeping a close eye on all problem credits. Our focus on increased asset quality and effective controls over the past year has translated into a healthy level of growth in our growth in our loan portfolio."
Non-performing loans totaled $16.5 million, or 0.83% of gross loans, at June 30, 2008 compared to $12.0 million, or 0.64% of gross loans, at March 31, 2008 and $8.4 million, or 0.50% of gross loans, at the end of June 2007.
"During the second quarter of 2008 we recovered $1.7 million from previously charged off loans, which contributed to net charge-offs of $234,000, compared to $1.0 million for the prior quarter and $1.8 million for the second quarter a year ago," said Ms. Kim. "While we anticipated having recoveries based on our persistent efforts to recover previously charged-off loans during this quarter, we do not expect to have recoveries at these levels going forward." For the first six months of 2008, net charge-offs totaled $1.3 million compared to $4.5 million in the first six months of 2007.
Provision for losses for loans and loan commitments was $1.4 million during the second quarter 2008, compared to $4.5 million during the same quarter a year ago. For the first six months of 2008 the provision for losses on loans and loan commitments was $2.8 million, compared to $6.1 million in the same period a year ago. The current quarter provision primarily reflects loan growth and the continued weakness in the broader economic environment. The allowance for loan losses was $23.5 million, representing 1.18% of gross loans and 143% of nonperforming loans, at June 30, 2008, compared with allowance for loan loses of $19.4 million, representing 1.16% of gross loans and 230% of nonperforming loans, at June 30, 2007 and allowance for loan loses of $22.1 million, representing 1.17% of gross loans and 184% of nonperforming loans at March 31, 2008. We believe the allowance was adequate for losses inherent in the portfolio at June 30, 2008.
BALANCE SHEET
Total assets increased 16% to $2.36 billion at June 30, 2008, compared with $2.04 billion a year ago. We were able to continue to originate more loans to our customers where we believed it was prudent and properly priced. The challenging credit market condition has created incremental earnings opportunities for Wilshire. Our average loans during the current quarter increased by 18% compared to the same quarter a year ago.
At June 30, 2008, commercial real estate loans comprised 73.7% of the loan portfolio. Wilshire continues to reduce its exposure to construction loans, which accounted for only 2.5% of its loan portfolio at June 30, 2008, compared with 3.0% a year ago. Based on thorough analysis on construction loans, we don't believe significant credit risk exists in our construction loan portfolio. Commercial and industrial loans accounted for 18.9% of total loans at the end of June 2008, compared with 18.4% a year earlier. Consumer loans decreased to 1.3% of total gross loans at current quarter-end, compared to 2.6% a year earlier.
Wilshire has not engaged in any subprime lending and the loan portfolio does not contain any such loans. For the purpose of making this determination, we consider "subprime loans" to be loans made to borrower (or borrowers) with a diminished or impaired credit rating or with a limited credit history.
Total deposits were $1.74 billion at June 30, 2008 compared to $1.77 billion a year earlier and $1.73 billion at preceding quarter end. Non-time deposits were at $792 million as of June 30, 2008, representing a 4% decrease compared to a year ago, but 4% increase compared to the preceding quarter end.
At June 30, 2008, shareholders' equity was $182 million, up 12% from $163 million a year ago and book value was $6.18 per share at June 30, 2008, versus to $5.54 a year earlier.
NET INTEREST MARGIN
"As expected, the 75 and 25 basis point reductions in the federal funds rate on March 18, 2008 and April 30, 2008, compressed our margin during the second quarter 2008, since our deposit costs re-priced at a slower pace than our interest earning assets," said Mr. Alex Ko, CFO. The net interest margin was 3.78% in the second quarter of 2008, compared to 3.83% in the previous quarter and 4.52% in the second quarter a year ago.
In the second quarter of 2008, the weighted average yield of the loan portfolio decreased 61 basis points to 7.11% from 7.72% in the preceding quarter. This decline was largely due to the impact of the 75 and 25 basis point cuts of the federal funds rate in March and April 2008.
Based on disciplined deposit pricing during the second quarter 2008, the net interest spread has increase to 3.17%, compared to 3.10% at March 31, 2008. The weighted average cost of interest-bearing liabilities for the second quarter decreased 62 basis points to 3.65% from 4.27% for the preceding quarter. The decrease was due to declining market rates and the effect the decline had on our deposit pricing, as well as the cost of wholesale funding through Federal Home Loan Bank (FHLB) advances. "We continue to use FHLB advances as a cost effective alternative for our funding needs, while we continue our effort in bringing in more core deposit via various marketing campaigns to support our steady loan growth," said Mr. Ko.
INCOME STATEMENT AND PERFORMANCE METRICS
In the second quarter of 2008, interest income was down 7% while interest expense was down 12% compared to the same quarter of 2007. Net interest income was down 3% to $20.3 million, from $20.9 million in the second quarter of 2007, while it was up 3% as compared with first quarter of 2008. Service fees on deposits grew by 21% to $3.0 million, compared with $2.5 million in the second quarter a year ago. Total noninterest income was down 11% to $5.6 million, compared to $6.3 million in the second quarter a year ago, due to the decrease in SBA loan sales during the second quarter of 2008.
SBA loan production levels decreased 49% to $21.7 million in the second quarter of 2008 compared to $42.2 million in the same period last year, reflecting the overall weaker economic environment. The average sales premium of SBA 7(a) guaranteed loans was lower in the second quarter of 2008 compared to the second quarter a year ago. The lowered sales volume and premium of SBA 7(a) guaranteed loans resulted in a 61% decline in gain on sale of loans to $918,000, compared with a $2.3 million gain in second quarter of 2007.
The decrease in gain on sales of loans was largely offset by 21% and 12% increases in service charges on deposits and other income, respectively. The significant increase in service income charges on deposits from the same quarter a year ago was mainly attributable to close account fee monitoring.
Total noninterest expenses were $12.6 million in the second quarter of 2008, compared to $10.6 million in the second quarter a year ago. The $2.0 million increase was primarily due to $421,000 increase in expense recognition related to stock options granted in June 2008 to employees and Board of Directors, and increase in salary and employee benefits associated with the integration of the New Jersey branch and the new Rancho Cucamonga branch opened in the second half of 2007.
In the six-month period ended June 30, 2008, interest income decreased $2.5 million, or 3%, from the same period a year ago, which was more than offset by $2.7 million, or 7%, decrease in interest expense, resulting in a slight increase in net interest income of $188,000 from $39.9 million net interest income in first half of 2007 to $40.1 million net interest income in the first half of 2008.
Noninterest income was $10.8 million for the first half of 2008, a 7% decrease from $11.5 million in the first six months of 2007, primarily due to $2.4 million, or 57%, decrease in gain on SBA loan sales between the two periods. Such significant decrease was largely offset by $1.0 million, or 21%, increase in service charges on deposits and $0.6 million, or 23%, increase in other income.
Noninterest expenses in the first half of 2008 were up 17% to $24.8 million, compared to $21.1 million in the first half of 2007. "We are continuing to explore branch expansion opportunities within our primary markets and look forward to two new branch openings that are already scheduled for later this year," said Ms. Kim. "Our new branch in Los Angeles is planned to open in the third quarter and our second New Jersey branch is planned to open later this year, which will bring our total branch network to 22 locations.
"Our new branches are proving to be very successful in helping us reach new customers and grow deposits," added Ms. Kim. "Although they initially put pressure on our expense ratios, over time they should add to our profitability by providing low-cost deposits and additional fee income opportunities." The efficiency ratio was 48.4% in the second quarter of 2008, compared to 49.1% in the previous linked quarter and 39.0% in the second quarter a year ago. Wilshire's return on equity (ROE) in the second quarter of 2008 was 16.36% and return on assets (ROA) was 1.29%, compared to 18.15% and 1.47%, respectively, in the second quarter a year ago.
"Our financial performance is strong and continues to remain stable under this weakened economic environment, reflecting the fact that unlike some banks, we have sufficient capital and liquidity to lend to qualified customers that meet our higher standards with more disciplined loan pricing," said Mr. Ko.
REGULATORY CAPITAL MEASURE
Our capital ratios remained strong and continue to exceed the "Well Capitalized" guidelines established by regulatory agencies. The leverage ratio was 10.21% at June 30, 2008, compared to 10.24% at March 31, 2008, and 10.28% at June 30, 2007. The total risk-based capital ratio was 13.99% at June 30, 2008, compared to 14.37% at March 31, 2008, and 14.22% at the end of June 2007.
CONFERENCE CALL & COMPANY INFORMATION
Management will host its quarterly conference call on July 22, at 11:00 a.m. PDT (2:00 p.m. EDT). Investment professionals are invited to participate in the call by dialing 1-888-680-0865 using passcode 84932857.
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, Dallas, Houston, Atlanta, Denver, Annandale, VA, and Palisades Park, NJ 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.
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 STATEMENT OF OPERATIONS
------------------------------------
(dollars in thousands, except per share data) (unaudited)
Quarter Three Quarter One Quarter
Ended Month Ended Year Ended
June 30, % March 31, % June 30,
2008 Change 2008 Change 2007
---------- ------- ---------- ------ ----------
INTEREST INCOME
Interest and
fees on loans $ 33,978 -4% $ 35,318 -7% $ 36,584
Interest on
securities 2,638 2% 2,584 13% 2,342
Interest on
federal funds
sold 49 -40% 80 -92% 578
---------- ---------- ----------
Total Interest
Income 36,665 -3% 37,982 -7% 39,504
---------- ---------- ----------
INTEREST EXPENSE
Deposits 12,864 -13% 14,738 -25% 17,243
FHLB and other
borrowings 3,468 -1% 3,500 158% 1,345
---------- ---------- ----------
Total Interest
Expense 16,332 -10% 18,238 -12% 18,588
---------- ---------- ----------
Net interest income 20,333 3% 19,744 -3% 20,916
Provision for
losses on loans
and loan
commitments 1,400 0% 1,400 -69% 4,500
---------- ---------- ----------
Net interest income
after provision
for loan losses
and loan
commitments 18,933 3% 18,344 15% 16,416
---------- ---------- ----------
NONINTEREST INCOME
Service charges
on deposits 3,043 11% 2,748 21% 2,505
Gain on sales of
loans 918 6% 864 -61% 2,334
Other 1,646 7% 1,542 12% 1,472
---------- ---------- ----------
Total Noninterest
Income 5,607 9% 5,154 -11% 6,311
---------- ---------- ----------
NONINTEREST EXPENSES
Salaries and
Employee Benefits 7,655 10% 6,976 34% 5,703
Occupancy &
Equipment 1,492 5% 1,425 15% 1,300
Data Processing 771 1% 764 4% 745
Other 2,636 -14% 3,059 -8% 2,858
---------- ---------- ----------
Total Noninterest
Expenses 12,554 3% 12,224 18% 10,606
---------- ---------- ----------
Income before
income taxes 11,986 6% 11,274 -1% 12,121
Income tax 4,557 8% 4,224 -5% 4,775
---------- ---------- ----------
NET INCOME $ 7,429 5% $ 7,050 1% $ 7,346
========== ========== ==========
Per Share Data
Basic earnings
per share $ 0.25 5% $ 0.24 0% $ 0.25
Diluted earnings
per share $ 0.25 5% $ 0.24 0% $ 0.25
Basic 29,391,177 29,276,871 29,370,096
Diluted 29,414,674 29,341,080 29,662,046
CONSOLIDATED STATEMENT OF OPERATIONS
------------------------------------
(dollars in thousands, except per share data) (unaudited)
Six Months Six Months
Ended Ended
June 30, June 30,
2008 2007 % Change
---------- ---------- --------
INTEREST INCOME
Interest and fees on loans $ 69,296 $ 70,485 -2%
Interest on securities 5,222 4,581 14%
Interest on federal funds sold 129 2,087 -94%
---------- ----------
Total Interest Income 74,647 77,153 -3%
---------- ----------
INTEREST EXPENSE
Deposits 27,602 34,605 -20%
FHLB and other borrowings 6,968 2,659 162%
---------- ----------
Total Interest Expense 34,570 37,264 -7%
---------- ----------
Net interest income 40,077 39,889 0%
Provision for losses on loans
and loan commitments 2,800 6,130 -54%
---------- ----------
Net interest income after
provision for loan losses and
loan commitments 37,277 33,759 10%
---------- ----------
NONINTEREST INCOME
Service charges on deposits 5,791 4,792 21%
Gain on sales of loans 1,782 4,144 -57%
Other 3,187 2,586 23%
---------- ----------
Total Noninterest Income 10,760 11,522 -7%
---------- ----------
NONINTEREST EXPENSES
Salaries and employee benefits 14,631 11,401 28%
Occupancy & equipment 2,917 2,570 13%
Data processing 1,536 1,510 2%
Other 5,693 5,628 1%
---------- ----------
Total Noninterest Expenses 24,777 21,109 17%
---------- ----------
Income before income taxes 23,260 24,172 -4%
Income tax 8,780 9,509 -8%
---------- ----------
NET INCOME $ 14,480 $ 14,663 -1%
========== ==========
Per Share Data
Basic earnings per share $ 0.49 $ 0.50 -1%
Diluted earnings per share $ 0.49 $ 0.50 0%
Basic 29,334,024 29,358,335
Diluted 29,392,621 29,641,359
CONSOLIDATED BALANCE SHEET
--------------------------
(dollars in thousands, except share data) (unaudited)
Three One
Month Year
June 30, % March 31, % June 30,
2008 Change 2008 Change 2007
---------- ------- ---------- ------ ----------
ASSETS:
Cash and due from
banks $ 69,497 -10% $ 77,225 -2% $ 70,949
Federal funds sold
and other cash
equivalents 4 -100% 20,004 -100% 25,004
---------- ---------- ----------
Total Cash and
Cash Equivalents 69,501 -29% 97,229 -28% 95,953
---------- ---------- ----------
Securities
available for sale 232,857 7% 218,505 19% 195,103
Securities held
to maturity 369 -2% 377 -97% 11,603
---------- ---------- ----------
Total Securities 233,226 7% 218,882 13% 206,706
---------- ---------- ----------
Loans
Real estate
construction 50,562 10% 46,047 0% 50,786
Residential real
estate 71,206 2% 69,542 3% 69,311
Commercial real
estate 1,463,422 5% 1,390,629 22% 1,203,094
Commercial and
industrial 376,096 8% 349,842 23% 306,732
Consumer 25,314 -8% 27,440 -41% 43,121
---------- ---------- ----------
Total loans 1,986,600 5% 1,883,500 19% 1,673,044
Allowance for loan
losses (23,494) 6% (22,072) 21% (19,378)
---------- ---------- ----------
Loans Receivable,
Net of Allowance
for Loan Losses 1,963,106 5% 1,861,428 19% 1,653,666
---------- ---------- ----------
Accrued interest
receivable 9,880 0% 9,832 -2% 10,097
Due from customers
on acceptances 3,366 44% 2,332 -21% 4,238
Other real estate
owned 465 249% 133 0% --
Premises and
equipment 10,913 1% 10,828 7% 10,205
Federal home loan
bank (FHLB) stock,
at cost 15,040 33% 11,280 77% 8,476
Cash surrender
value of life
insurance 16,514 1% 16,367 4% 15,931
Investment in
affordable housing
partnerships 6,428 -1% 6,518 35% 4,779
Goodwill 6,675 0% 6,675 0% 6,675
Other intangible
assets 1,438 -5% 1,512 -17% 1,736
Other assets 22,760 31% 17,419 8% 21,054
---------- ---------- ----------
TOTAL ASSETS $2,359,312 4% $2,260,435 16% $2,039,516
========== ========== ==========
LIABILITIES AND
STOCKHOLDERS'
EQUITY:
LIABILITIES:
Non-interest
bearing demand
deposits $ 320,360 4% $ 308,037 -2% $ 327,400
Savings & interest
checking 61,867 6% 58,146 15% 53,820
Money market
deposits 409,767 5% 391,987 -8% 443,825
Time deposits in
denomination of
$100,000 or more 773,176 -3% 793,235 -2% 792,031
Other time deposits 174,119 -1% 176,182 17% 148,849
---------- ---------- ----------
Total Deposits 1,739,289 1% 1,727,587 -2% 1,765,925
---------- ---------- ----------
Federal home loan
bank and other
borrowings 325,000 35% 240,000 1525% 20,000
Acceptance
outstanding 3,366 44% 2,332 -21% 4,238
Junior subordinated
debentures 87,321 0% 87,321 42% 61,547
Accrued interest
and other
liabilities 22,650 -12% 25,659 -10% 25,219
---------- ---------- ----------
Total Liabilities 2,177,626 5% 2,082,899 16% 1,876,929
---------- ---------- ----------
STOCKHOLDERS'
EQUITY:
Common stock - no
par value-
authorized,
80,000,000 shares
issued and
outstanding
29,391,177,
29,391,177 and
29,371,696 shares,
at June 30, 2008,
March 31, 2008,
and June 30, 2007,
respectively 51,911 1% 51,399 2% 50,733
Less treasury stock,
at cost; 127,425,
127,425, and 0
shares, at
June 30, 2008,
March 31, 2008, and
June 30, 2007,
respectively (1,262) 0% (1,262) 0% --
Retained earnings 131,443 5% 125,483 17% 112,564
Accumulated other
comprehensive
income, net of
taxes (406) -121% 1,916 -43% (710)
---------- ---------- ----------
Total Stockholders'
Equity 181,686 2% 177,536 12% 162,587
---------- ---------- ----------
TOTAL LIABILITIES
AND STOCKHOLDERS'
EQUITY $2,359,312 4% $2,260,435 16% $2,039,516
========== ========== ==========
SUMMARY OF FINANCIAL DATA
-------------------------
(dollars in thousands, except per share data) (unaudited)
AVERAGE BALANCES
----------------
Quarter Quarter Quarter
Ended Ended Ended
June 30, March 31, June 30,
2008 2008 2007
---------- ---------- ----------
Average
assets $2,303,278 $2,211,860 $1,996,898
Average
equity $ 181,645 $ 175,332 $ 161,855
Average net
loans
(includes
LHFS) $1,911,835 $1,828,889 $1,621,006
Average
deposits $1,726,147 $1,704,820 $1,724,088
Average time
deposits in
denomination
of $100,000
or more $ 795,080 $ 788,630 $ 783,100
Average
interest
earning
assets $2,149,188 $2,061,264 $1,851,415
Six Months Six Months
Ended Ended
June 30, June 30,
2008 2007
---------- ----------
Average
assets $2,257,288 $1,994,399
Average
equity $ 178,488 $ 158,496
Average net
loans
(includes
LHFS) $1,870,362 $1,586,403
Average
deposits $1,715,484 $1,727,604
Average timed
deposits in
denomination
of $100,000
or more $ 791,855 $ 794,060
Average
interest
earning
assets $2,105,226 $1,851,419
PROFITABILITY
-------------
Quarter Quarter Quarter
Ended Ended Ended
June 30, March 31, June 30,
2008 2008 2007
---------- ---------- ----------
Annualized
return on
average
assets 1.29% 1.28% 1.47%
Annualized
return on
average
equity 16.36% 16.08% 18.15%
Efficiency
ratio 48.39% 49.10% 38.95%
Annualized
operating
expense/
average
assets 2.18% 2.21% 2.12%
Annualized
net interest
margin 3.78% 3.83% 4.52%
Six Months Six Months
Ended Ended
June 30, June 30,
2008 2007
---------- ----------
Annualized
return on
average
assets 1.28% 1.47%
Annualized
return on
average
equity 16.22% 18.50%
Efficiency
ratio 48.74% 41.06%
Annualized
operating
expense/
average
assets 2.20% 2.12%
Annualized
net interest
margin 3.81% 4.31%
DEPOSIT COMPOSITION
-------------------
Quarter Quarter Quarter
Ended Cost Ended Cost Ended Cost
June 30, of March 31, of June 30, of
2008 Fund 2008 Fund 2007 Fund
------- ---- -------- ---- ------- ----
Noninterest
bearing
demand
deposits 18.4% 0.00% 17.8% 0.00% 18.5% 0.00%
Savings &
interest
checking 3.6% 2.56% 3.4% 2.38% 3.0% 1.81%
Money market
deposits 23.6% 3.05% 22.7% 3.76% 25.1% 4.48%
Time deposits
of $100,000
or more 44.4% 3.88% 45.9% 4.46% 44.9% 5.31%
Other time
deposits 10.0% 4.08% 10.2% 4.60% 8.5% 4.97%
------- ------- -------
Total
deposits 100.0% 2.98% 100.0% 3.46% 100.0% 4.00%
SUMMARY OF FINANCIAL DATA
-------------------------
(dollars in thousands, except per share data) (unaudited)
CAPITAL RATIO
-------------
Quarter Quarter Quarter
Ended Ended Ended
June 30, March 31, June 30,
2008 2008 2007
-------- -------- --------
Tier 1 leverage ratio 10.21% 10.24% 10.28%
Tier 1 risk-based capital ratio 11.55% 11.75% 12.36%
Total risk-based capital ratio 13.99% 14.37% 14.22%
Total shareholders' equity $181,686 $177,536 $162,587
Book value per share $ 6.18 $ 6.04 $ 5.54
Tangible book value per share $ 5.92 $ 5.70 $ 5.27
ALLOWANCE FOR LOAN LOSSES
-------------------------
(net of SBA guaranteed portion)
Quarter Quarter Quarter
Ended Ended Ended
June 30, March 31, June 30,
2008 2008 2007
-------- -------- --------
Balance at beginning of period $ 22,072 $ 21,579 $ 17,214
Provision for losses on loans 1,656 1,512 3,921
Recoveries on loans previously
charged off 1,654 121 31
Less charge offs 1,888 1,140 1,788
-------- -------- --------
Balance at end of period $ 23,494 $ 22,072 $ 19,378
======== ======== ========
Net loan charge-offs to average
total loans 0.01% 0.06% 0.11%
Gross charge-offs to average total
loans 0.10% 0.06% 0.11%
Allowance for loan losses/gross
loans 1.18% 1.17% 1.16%
Allowance for loan losses/
non-accrual loans 142.68% 196.64% 264.15%
Allowance for loan losses/
non-performing loans 142.64% 184.35% 230.33%
Allowance for loan losses/
non-performing assets 138.64% 163.26% 228.35%
Six Months Six Months
Ended Ended
June 30, June 30,
2008 2007
-------- --------
Balance at beginning of period $ 21,579 $ 18,654
Provision for losses on loans 3,168 5,176
Recoveries on loans previously
charged off 1,775 82
Less charge offs 3,028 4,534
-------- --------
Balance at end of period $ 23,494 $ 19,378
======== ========
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS
-------------------------------------
Quarter Quarter Quarter
Ended Ended Ended
June 30, March 31, June 30,
2008 2008 2007
-------- -------- --------
Balance at beginning of period $ 1,886 $ 1,998 $ 1,266
(Recapture of) provision for losses
on off-balance sheet items (256) (112) 579
-------- -------- --------
Balance at end of period $ 1,630 $ 1,886 $ 1,845
======== ======== ========
Six Months Six Months
Ended Ended
June 30, June 30,
2008 2007
-------- --------
Balance at beginning of period $ 1,998 $ 891
(Recapture of) provision for losses
on off-balance sheet items (368) 954
-------- --------
Balance at end of period $ 1,630 $ 1,845
======== ========
SUMMARY OF FINANCIAL DATA
-------------------------
(dollars in thousands, except per share data) (unaudited)
NON-PERFORMING ASSETS
---------------------
(net of SBA guaranteed portion)
Quarter Quarter Quarter
Ended Ended Ended
June 30, March 31, June 30,
2008 2008 2007
-------- -------- --------
Nonaccrual loans:
Construction $ -- $ -- $ --
Real estate secured 12,405 8,061 6,320
Commercial and industrial 3,797 2,914 789
Consumer 265 250 227
-------- -------- --------
Total 16,467 11,225 7,336
Loans 90 days or more past due and
still accruing:
Construction -- -- --
Real estate secured -- 503 743
Commercial and industrial 4 56 334
Consumer -- 189 --
-------- -------- --------
Total 4 748 1,077
Total nonperforming loans 16,471 11,973 8,413
-------- -------- --------
Total nonperforming loans/
gross loans 0.83% 0.64% 0.50%
Restructured loans -- 1,393 --
OREO and repossessed vehicles 476 154 73
-------- -------- --------
Total nonperforming assets $ 16,947 $ 13,520 $ 8,486
======== ======== ========
Total nonperforming assets/
total assets 0.72% 0.60% 0.42%
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars in Thousands) (unaudited)
For the Three Months Ended
-----------------------------------------------------
June 30, 2008 March 31, 2008
-----------------------------------------------------
Average Interest Average Average Interest Average
Balance Income/ Yield/ Balance Income/ Yield/
Expense Rate Expense Rate
INTEREST EARNING
ASSETS
LOANS:
Real estate
loans $1,551,297 $26,994 6.96% $1,486,208 $27,531 7.41%
Commercial
loans 362,376 5,382 5.94% 340,095 5,990 7.04%
Consumer loans 26,376 431 6.53% 29,873 526 7.04%
------------------- ---- ------------------- ----
Total loans
- gross 1,940,049 32,807 6.76% 1,856,176 34,047 7.34%
Loan fees
toward yield 1,171 1,271
Allowance for
loan losses &
unearned
income (28,213) (27,287)
------------------- ---- ------------------- ----
Net Loans $1,911,836 $33,978 7.11% $1,828,889 $35,318 7.72%
=================== ==== =================== ====
INVESTMENT
SECURITIES AND
OTHER INTEREST-
EARNING ASSETS:
U.S. government
agencies $ 228,806 $ 2,638 4.61% $ 222,524 $ 2,584 4.64%
Federal funds
sold 8,546 49 2.27% 9,851 80 3.27%
------------------- ---- ------------------- ----
Total
Investment
Securities
and Other
Earning
Assets $ 237,352 $ 2,687 4.53% $ 232,375 $ 2,664 4.59%
=================== ==== =================== ====
TOTAL INTEREST-
EARNING ASSETS $2,149,188 $36,665 6.82% $2,061,264 $37,982 7.37%
=================== ==== =================== ====
INTEREST BEARING
LIABILITIES
INTEREST-BEARING
DEPOSITS:
Money market $ 393,182 $ 2,998 3.05% $ 396,595 $ 3,725 3.76%
NOW 22,533 76 1.35% 22,520 79 1.41%
Savings 35,995 299 3.32% 32,617 249 3.05%
Time deposits
of $100,000
or more 795,081 7,720 3.88% 788,630 8,799 4.46%
Other time
deposits 173,783 1,771 4.08% 163,993 1,886 4.60%
------------------- ---- ------------------- ----
Total
Interest
Bearing
Deposits $1,420,574 $12,864 3.62% $1,404,355 $14,738 4.20%
=================== ==== =================== ====
BORROWINGS:
FHLB advances
and other
borrowings $ 281,846 $ 2,356 3.34% $ 217,593 $ 2,043 3.76%
Junior
subordinated
debentures 87,321 1,112 5.09% 87,321 1,457 6.68%
------------------- ---- ------------------- ----
Total
Borrowings $ 369,167 $ 3,468 3.76% $ 304,914 $ 3,500 4.59%
=================== ==== =================== ====
TOTAL INTEREST
BEARING
LIABILITIES $1,789,741 $16,332 3.65% $1,709,269 $18,238 4.27%
=================== ==== =================== ====
NET INTEREST
INCOME $20,333 $19,744
======= =======
NET INTEREST
SPREAD 3.17% 3.10%
==== ====
NET INTEREST
MARGIN 3.78% 3.83%
==== ====
For the Three Months Ended
-------------------------
June 30, 2007
-------------------------
Average Interest Average
Balance Income/ Yield/
Expense Rate
INTEREST EARNING ASSETS
LOANS:
Real estate loans $1,289,641 $26,821 8.32%
Commercial loans 311,971 6,927 8.88%
Consumer loans 45,704 923 8.08%
------------------- ----
Total loans - gross 1,647,316 34,671 8.42%
Loan fees toward yield 1,913
Allowance for loan losses &
unearned income (26,310)
------------------- ----
Net Loans $1,621,006 $36,584 9.03%
=================== ====
INVESTMENT SECURITIES AND
OTHER INTEREST-EARNING ASSETS:
U.S. government agencies $ 188,184 $ 2,342 4.98%
Federal funds sold 42,225 578 5.48%
------------------- ----
Total Investment Securities and
Other Earning Assets $ 230,409 $ 2,920 5.07%
=================== ====
TOTAL INTEREST-EARNING ASSETS $1,851,415 $39,504 8.53%
=================== ====
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money market $ 421,205 $ 4,722 4.48%
NOW 22,119 66 1.20%
Savings 29,039 165 2.28%
Time deposits of $100,000 or more 783,100 10,391 5.31%
Other time deposits 152,789 1,899 4.97%
------------------- ----
Total Interest Bearing Deposits $1,408,252 $17,243 4.90%
=================== ====
BORROWINGS:
FHLB advances and other borrowings $ 21,540 $ 204 3.79%
Junior subordinated debentures 61,547 1,141 7.42%
------------------- ----
Total Borrowings $ 83,087 $ 1,345 6.48%
=================== ====
TOTAL INTEREST BEARING LIABILITIES $1,491,339 $18,588 4.99%
=================== ====
NET INTEREST INCOME $20,916
=======
NET INTEREST SPREAD 3.55%
====
NET INTEREST MARGIN 4.52%
====
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars in Thousands) (unaudited)
For the Six Months Ended
-----------------------------------------------------
June 30, 2008 June 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 $1,518,752 $54,526 7.18% $1,260,721 $51,542 8.18%
Commercial
loans 351,236 11,372 6.48% 303,887 13,511 8.89%
Consumer loans 28,124 956 6.80% 48,347 1,929 7.98%
------------------- ---- ------------------- ----
Total loans
- gross 1,898,112 66,854 7.04% 1,612,955 66,982 8.31%
Loan fees
toward yield 2,442 3,503
Allowance for
loan losses &
unearned
income (27,750) (26,552)
------------------- ---- ------------------- ----
Gross Loans,
Net $1,870,362 $69,296 7.41% $1,586,403 $70,485 8.89%
=================== ==== =================== ====
INVESTMENT
SECURITIES AND
OTHER INTEREST-
EARNING ASSETS:
U.S. government
agencies $ 225,665 $ 5,222 4.63% $ 187,378 $ 4,581 4.89%
Federal funds
sold 9,199 129 2.81% 77,638 2,087 5.38%
------------------- ---- ------------------- ----
Total
Investment
Securities
and Other
Earning
Assets $ 234,864 $ 5,351 4.56% $ 265,016 $ 6,668 5.03%
=================== ==== =================== ====
TOTAL INTEREST-
EARNING ASSETS $2,105,226 $74,647 7.09% $1,851,419 $77,153 8.33%
=================== ==== =================== ====
INTEREST BEARING
LIABILITIES
INTEREST-BEARING
DEPOSITS:
Money market $ 394,888 $ 6,723 3.40% $ 413,608 $ 9,320 4.51%
NOW 22,527 155 1.38% 21,541 125 1.16%
Savings 34,306 548 3.19% 29,154 306 2.10%
Time deposits
of $100,000
or more 791,855 16,519 4.17% 794,060 21,008 5.29%
Other time
deposits 168,888 3,657 4.33% 155,596 3,846 4.94%
------------------- ---- ------------------- ----
Total
Interest-
Bearing
Deposits $1,412,464 $27,602 3.91% $1,413,959 $34,605 4.89%
=================== ==== =================== ====
BORROWINGS:
FHLB advances
and other
borrowings 249,720 4,399 3.52% 20,783 386 3.71%
Junior
subordinated
debentures 87,321 2,569 5.88% 61,547 2,273 7.39%
Total
Borrowings $ 337,041 $ 6,968 4.13% $ 82,330 $ 2,659 6.46%
=================== ==== =================== ====
TOTAL INTEREST
BEARING
LIABILITIES $1,749,505 $34,570 3.95% $1,496,289 $37,264 4.98%
=================== ==== =================== ====
NET INTEREST
INCOME $40,077 $39,889
======= =======
NET INTEREST
SPREAD 3.14% 3.35%
==== ====