LOS ANGELES, Oct. 25, 2011 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq:WIBC), the holding company ("the Company") for Wilshire State Bank ("the Bank"), today reported net income available to common shareholders of $10.2 million, or $0.14 per diluted common share, for the quarter ended September 30, 2011. This compares to net income available to common shareholders of $4.1 million, or $0.14 per diluted common share, for the same period of the prior year, and net income available to common shareholders of $2.1 million, or $0.04 per diluted common share, in the second quarter of 2011.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "We are very pleased with our third quarter results, which reflect significant improvement in our asset quality and the continued strong earnings power of our franchise. Our primary focus remains on credit quality and reducing problem loans, and we continue to make excellent progress in this area. During the third quarter of 2011, our non-performing loans, delinquent loans, impaired loans, and classified loans were all reduced from the previous quarter. This is the result of our aggressive efforts to dispose of our weakest credits, which has significantly improved the overall quality of our remaining loan portfolio.
Q3 2011 Summary:
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Net income available to common shareholders of $10.2 million, or $0.14 per share
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Substantial improvement in asset quality from Q2 2011 to Q3 2011 with a 76% decline in delinquent loans and a 28% decline in non-accrual loans
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Overall reduction in inflows into all major credit categories
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Annualized quarter to date return on average assets of 1.65%
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Annualized quarter to date return on average equity of 14.89%
- All capital ratios strengthened from prior quarter
STATEMENT OF OPERATIONS
Net Interest Income and Margin
Net interest income before provision for loan losses totaled $25.5 million in the third quarter of 2011, a decrease of 14% from $29.7 million in the third quarter of 2010, and a decrease of 7% from $27.3 million in the second quarter of 2011. The decrease in net interest income on a linked quarter basis was primarily attributable to a decline in total loans as result of management's plan to aggressively reduce problem loans.
Net interest margin was 4.23% in the third quarter of 2011, compared to 3.93% in the third quarter of 2010 and 4.42% in the second quarter of 2011. Loan yields increased from 5.94% for the second quarter of 2011 to 6.01% for the third quarter of 2011 mainly due to the reduction in interest income reversals from non-accrual loans. Total non-accrual loan interest reversals declined to $812 thousand during the third quarter of 2011 compared to $1.8 million during the previous quarter. The cost of interest bearing deposits continued to decrease and was 1.05% for the third quarter of 2011, down from 1.07% and 1.47% for the second quarter of 2011 and third quarter of 2010, respectively.
Despite the improvement in loan yields and deposit costs, the net interest margin declined from 4.42% in the second quarter of 2011 to 4.23% in third quarter of 2011 due to a 41 basis point reduction in investment yields, as well as higher balances of fed funds sold which includes cash held at the Federal Reserve Bank which yields only 25 basis points. As excess liquidity is redeployed into loan originations and investment purchases, the Company expects to reduce slightly a portion of the compression in its net interest margin going forward.
Non-Interest Income
Total non-interest income was $7.7 million for the quarter ended September 30, 2011, compared to $1.7 million for the previous quarter and $10.0 million for the quarter ended September 30, 2010. During the second quarter of 2011, the Company had a net loss of $3.6 million due to loss on sale of loans and valuation allowances for held-for-sale loans. For the third quarter of 2011, gain on sale of loans and valuation allowances totaled $1.7 million, a difference of $5.3 million from the previous quarter which accounted for the large increase in non-interest income. Compared to the third quarter of 2010, non-interest income declined by $2.3 million mainly due to the decline in gain on sale of investments which totaled $52 thousand for the third quarter of 2011 compared to $2.6 million for the same period of the previous year.
Net gain on sale of loans totaled $2.1 million for the quarter ended September 30, 2011. The $2.1 million consisted of gains from SBA loan sales totaling $2.7 million, gains from mortgage loan sales totaling $80 thousand, and a net loss on sale of CRE loans totaling $700 thousand.
Other non-interest income increased to $2.7 million for the quarter ended September 30, 2011 compared to $2.2 million and $1.7 million for the quarters ended June 30, 2011 and September 30, 2010, respectively. The increase in other non-interest income from the previous periods was the result of an increase in loan fees coupled and other miscellaneous non-interest income.
Non-Interest Expense
Total non-interest expense was $18.5 million for the third quarter of 2011, compared with $16.6 million for the prior quarter and $14.8 million for the third quarter of 2010. The Company's operating efficiency ratio improved to 55.7% for the quarter ended September 30, 2011 from 57.2% for the quarter ended June 30, 2011.
Total salaries and employee benefits were $6.8 million in the third quarter of 2011, compared with $6.8 million in the prior quarter and $7.5 million in the third quarter of 2010. The decrease from the same period of the prior year is primarily due to the reduction in staff during the first quarter of this year.
Other non-interest expenses for the third quarter of 2011 totaled $9.0 million, compared with $7.0 million in the second quarter of 2011 and $4.7 million in the third quarter of 2010. The increase in other non-interest expenses from the prior quarter and previous year was primarily attributable to an increase in expenses related to other real estate owned ("OREO") and an increase in legal fees.
BALANCE SHEET
Total loans (including loans held-for-sale) were $1.99 billion at September 30, 2011, compared to $2.08 billion at June 30, 2011. The decrease was due to $28.7 million in note sales, $12.5 million in charge-offs, and loan pay-downs during the third quarter of 2011.
As previously disclosed, upon acquiring certain assets and liabilities of the former Mirae Bank, the Company entered into a loss sharing agreement with the FDIC whereby the FDIC has agreed to share in losses on assets covered under the agreement. The assets covered by the loss sharing agreement include loans and foreclosed loan collateral existing on June 26, 2009 and acquired from Mirae Bank. As a result, loans acquired through the acquisition of Mirae Bank are identified as "covered" loans, and those that were originated at Wilshire are "non-covered" loans or "legacy Wilshire" loans. The following table shows "covered" and "non-covered" gross loans by loan type:
Loan Categories
(Dollars In Thousands) | Quarter Ended | ||||
Gross Non-Covered Loans | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sep 30, 2010 |
Construction | $ 58,988 | $ 70,304 | $ 74,538 | $ 72,258 | $ 70,808 |
Real Estate Secured | 1,501,297 | 1,548,559 | 1,725,298 | 1,757,328 | 1,832,726 |
Commercial & Industrial | 244,248 | 260,990 | 274,392 | 276,739 | 308,277 |
Consumer | 16,013 | 15,350 | 14,587 | 15,574 | 16,937 |
Total Non-Covered Gross Loans | $ 1,820,546 | $ 1,895,203 | $ 2,088,815 | $ 2,121,899 | $ 2,228,748 |
Gross Covered Loans | |||||
Real Estate Secured | $ 143,719 | $ 154,020 | $ 154,655 | $ 159,699 | $ 166,490 |
Commercial & Industrial | 33,103 | 38,170 | 45,024 | 49,680 | 53,613 |
Consumer | 86 | 96 | 104 | 111 | 125 |
Total Covered Gross Loans | $ 176,908 | $ 192,286 | $ 199,783 | $ 209,490 | $ 220,228 |
Total Gross Loans | |||||
Construction | $ 58,988 | $ 70,304 | $ 74,538 | $ 72,258 | $ 70,808 |
Real Estate Secured | 1,645,016 | 1,702,579 | 1,879,953 | 1,917,027 | 1,999,216 |
Commercial & Industrial | 277,351 | 299,160 | 319,416 | 326,419 | 361,890 |
Consumer | 16,099 | 15,446 | 14,691 | 15,685 | 17,062 |
Total Gross Loans | $ 1,997,454 | $ 2,087,489 | $ 2,288,598 | $ 2,331,389 | $ 2,448,976 |
Loan originations for the third quarter of 2011 totaled $97.5 million. This compares to total loan originations of $82.2 million for the second quarter of 2011 and $112.9 million for the third quarter of 2010. The decrease in real estate secured loan originations for the third quarter of 2011 was a result of management's efforts to reduce the Company's concentration of real estate secured loans and focusing on increasing originations of other loan types.
The following table shows quarterly loan originations by loan type:
Quarter Ended | ||||||
LOAN ORIGINATIONS (Dollars In Thousands) | Sep 30, 2011 | Jun 30, 2011 | Sep 30, 2010 | |||
Real Estate Secured | $ 24,493 | 25% | $ 39,065 | 47% | $ 37,597 | 33% |
Commercial & Industrial | 22,049 | 23% | 11,200 | 14% | 28,444 | 25% |
Consumer | 1,510 | 2% | 48 | 0% | 14,666 | 13% |
SBA Loans | 20,746 | 21% | 27,665 | 34% | 17,613 | 16% |
Home Mortgage Loans | 28,736 | 29% | 4,205 | 5% | 14,591 | 13% |
Total Loan Originations | $ 97,534 | 100% | $ 82,183 | 100% | $ 112,911 | 100% |
Proceeds from loan pay-downs and note sales were utilized for investment purchases and an increase in term fed funds sold. Investment securities increased 16% to $356.2 million at September 30, 2011 from $307.4 million at June 30, 2011 and term fed funds sold increased 30% to $150.0 million at September 30, 2011 from $115.0 million at June 30, 2011.
Total OREOs were $9.3 million at September 30, 2011, compared with $8.5 million at June 30, 2011. Outflow from OREO in the third quarter of 2011 consisted of 16 sold properties totaling approximately $7.5 million. Inflow to OREO in the third quarter of 2011 consisted of 11 properties totaling approximately $9.0 million.
Total deposits were $2.15 billion at September 30, 2011, unchanged from June 30, 2011. However, the Company continued to improve its deposit mix with non-interest bearing demand deposits increasing to 21.8% of total deposits at September 30, 2011, up from 20.9% at June 30, 2011 and 16.7% at September 30, 2010.
CREDIT QUALITY
The Company's credit quality metrics improved in the third quarter of 2011 with significant declines in the balances and inflow of new problem assets to each respective category. From the second to third quarter of 2011, non-accrual loans declined 27.6%, delinquencies declined 75.5%, troubled debt restructuring ("TDR") loans declined 34.8%, impaired loans declined 25.7%, classified loans declined 20.9%, and gross charge-offs declined 11.7%. As a result of the improved credit quality metrics, the Company's provision for loan losses declined to $2.5 million in the third quarter of 2011, down from $10.3 million in the prior quarter.
Despite the reduced provision for loan losses, the Company's coverage ratios remained relatively stable from the end of the prior quarter. The allowance for loan losses was $105.3 million, or 5.27% of gross loans at September 30, 2011, compared to $111.0 million, or 5.32% of gross loans, at June 30, 2011. The coverage ratio of the allowance for loan losses to non-performing assets was 160% at September 30, 2011, compared with 128% at June 30, 2011. Allowance coverage of legacy Wilshire loans (i.e. loans originated by Wilshire as opposed to Mirae Bank) was 5.78% at September 30, 2011, compared with 5.86% at June 30, 2011.
The Company's ratio of legacy classified assets to Tier 1 capital plus reserves percentage was 32.5% at September 30, 2011. The requirement for the legacy classified assets to Tier 1 capital plus reserves ratio for the Bank stated in the memorandum of understanding ("MOU") with regulators is a maximum of 50%, with which the Bank is in compliance.
Note Sales
The Company sold $28.7 million in held-for-sale loans (not including SBA or residential mortgage loans) during the third quarter of 2011. All of the loans were sold on an individual basis and had an average discount to their principal balance of 33.1%. The held-for-sale loans that were sold included $24.7 million in non-accrual loans, $2.9 million in troubled debt restructured loans, and $1.1 million in other loans.
As of September 30, 2011, the Company had approximately $70.7 million in loans classified as held-for-sale. Of that total, commercial real estate loans accounted for $37.2 million, SBA loans totaled $4.7 million and $28.8 million were residential mortgage loans.
Non-Accrual Loans
At September 30, 2011, total non-covered non-accrual loans declined to $39.5 million, or 2.18% of gross non-covered loans, compared to $59.4 million, or 3.13% of non-covered loans, at June 30, 2011.
The following table shows "covered" and "non-covered" non-accrual loans by loan type:
NON-ACCRUAL LOANS (Dollars In Thousands) | |||||
(Net of SBA Guaranteed Portions) | Quarter Ended | ||||
Non-Covered Loans | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sep 30, 2010 |
Construction | $ 316 | $ 12,000 | $ -- | $ -- | $ 2,660 |
Real Estate Secured | 37,454 | 46,447 | 60,363 | 59,571 | 56,779 |
Commercial & Industrial | 1,764 | 808 | 1,695 | 1,284 | 3,272 |
Consumer | -- | 144 | 11 | 27 | 37 |
Total Non-Covered Non-Accrual Loans | $ 39,534 | $ 59,399 | $ 62,069 | $ 60,882 | $ 62,748 |
Covered Loans | |||||
Real Estate Secured | $ 15,322 | $ 16,392 | $ 16,269 | $ 8,005 | $ 10,569 |
Commercial & Industrial | 1,609 | 2,151 | 1,795 | 2,345 | 3,031 |
Total Covered Non-Accrual Loans | $ 16,931 | $ 18,543 | $ 18,064 | $ 10,350 | $ 13,600 |
Total Non-Accrual Loans | |||||
Construction | $ 316 | $ 12,000 | $ -- | $ -- | $ 2,660 |
Real Estate Secured | 52,776 | 62,839 | 76,632 | 67,576 | 67,348 |
Commercial & Industrial | 3,373 | 2,959 | 3,490 | 3,629 | 6,303 |
Consumer | -- | 144 | 11 | 27 | 37 |
Total Non-Accrual Loans | $ 56,465 | $ 77,942 | $ 80,133 | $ 71,232 | $ 76,348 |
The decrease in non-accrual loans is attributable to the sale of $24.7 million of non-accrual loans in addition to a decline in inflows into non-accrual status. Included in the sale of $24.7 million in non-accrual loans during the third quarter of 2011 was a construction loan totaling $12.0 million, which was sold with an approximate gain of $500 thousand.
The inflow into total (covered and non-covered) non-accrual loans was $17.1 million in the third quarter of 2011, a decline from inflow of $29.3 million for the second quarter of 2011. Total outflow from total non-accrual loans increased to $38.6 million in the third quarter of 2011 from $31.5 million in the second quarter of 2011.
Impaired Loans
Loans are classified as impaired when based on current information, it is probable that the Company will not be able to collect all principal and interest payments due in accordance with the terms of the loan. Non-covered impaired loans at September 30, 2011 totaled $65.7 million, compared with $91.2 million at June 30, 2011. The decrease in impaired loans during the third quarter of 2011 is largely attributable to note sales and charge-offs, as well as a slowing of inflow into the impaired loan category. Total inflows into impaired loans decreased from $33.5 million for the quarter ended June 30, 2011 to $18.2 million for the third quarter of 2011.
Total impaired loans by loan category are shown in the table below:
IMPAIRED LOANS (Dollars In Thousands) | |||||
(Net of SBA Guaranteed Portions) | Quarter Ended | ||||
Non-Covered Loans | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sep 30, 2010 |
Construction | $ 316 | $ 12,000 | $ -- | $ -- | $ 2,660 |
Real Estate Secured | 60,365 | 74,845 | 149,402 | 93,452 | 157,068 |
Commercial & Industrial | 4,978 | 4,216 | 5,456 | 5,649 | 8,505 |
Consumer | -- | 136 | -- | 27 | 37 |
Total Non-Covered Impaired Loans | $ 65,659 | $ 91,197 | $ 154,858 | $ 99,128 | $ 168,270 |
Covered Loans | |||||
Real Estate Secured | $ 16,169 | $ 19,236 | $ 18,256 | $ 15,120 | $ 18,837 |
Commercial & Industrial | 2,380 | 2,922 | 3,332 | 4,216 | 5,479 |
Total Covered Impaired Loans | $ 18,549 | $ 22,158 | $ 21,588 | $ 19,336 | $ 24,316 |
Total Impaired Loans | |||||
Construction | $ 316 | $ 12,000 | $ -- | $ -- | $ 2,660 |
Real Estate Secured | 76,534 | 94,081 | 167,658 | 108,572 | 175,905 |
Commercial & Industrial | 7,358 | 7,138 | 8,788 | 9,865 | 13,984 |
Consumer | -- | 136 | -- | 27 | 37 |
Total Impaired Loans | $ 84,208 | $ 113,355 | $ 176,446 | $ 118,464 | $ 192,586 |
Troubled Debt Restructured Loans
At September 30, 2011, total non-covered troubled debt restructured loans or "TDR loans", declined to $13.1 million from $22.3 million at June 30, 2011. The decline in TDR loans was a result of note sales, charge-offs, and a reduction in the number of modification requests during the quarter.
Total TDR loans by loan category are shown in the table below:
TROUBLED DEBT RESTRUCTURED LOANS (Dollars In Thousands) | |||||
(net of SBA guaranteed portions) | |||||
Quarter Ended | |||||
Non-Covered Loans | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sep 30, 2010 |
Real Estate Secured | $ 10,568 | $ 18,733 | $ 31,540 | $ 36,187 | $ 100,289 |
Commercial & Industrial | 2,538 | 3,529 | 4,117 | 3,574 | 4,929 |
Total Non-Covered TDR Loans | $ 13,106 | $ 22,262 | $ 35,657 | $ 39,761 | $ 105,218 |
Covered Loans | |||||
Real Estate Secured | $ 6,493 | $ 8,518 | $ 7,676 | $ 7,115 | $ 8,268 |
Commercial & Industrial | 1,429 | 1,473 | 1,844 | 1,870 | 2,448 |
Total Covered TDR Loans | $ 7,922 | $ 9,991 | $ 9,520 | $ 8,985 | $ 10,716 |
Total TDRs Loans | |||||
Real Estate Secured | $ 17,061 | $ 27,251 | $ 39,216 | $ 43,302 | $ 108,557 |
Commercial & Industrial | 3,967 | 5,002 | 5,961 | 5,444 | 7,377 |
Total TDR Loans | $ 21,028 | $ 32,253 | $ 45,177 | $ 48,746 | $ 115,934 |
Of the total $21.0 million in TDR loans at September 30, 2011, $7.0 million in TDR loans were also classified as non-accrual of which only $678 thousand was non-covered. These loans were also included in our non-accrual loan totals at September 30, 2011 in addition to being reported as TDR loans in the above table.
Loan Delinquencies
At September 30, 2011, total non-covered loan delinquencies (not including non-accrual loans) declined to $7.3 million from $28.4 million at June 30, 2011, a decline of 74.3%. As a percentage of gross non-covered loans, delinquencies decreased to 0.40% at September 30, 2011, from 1.50% at June 30, 2011. The decline in delinquencies was primarily attributable to a sizable migration of loans back to current status (less than 30 days past due) and a decline in inflows to delinquency. During the third quarter, $15.2 million in delinquent loans returned to current status. Inflow into loan delinquencies was $4.3 million in the third quarter of 2011, compared with $28.2 million in the prior quarter.
Delinquent loans by days past due are reflected in the table below:
DELINQUENT LOANS -- By Days Past Due(Dollars In Thousands) | |||||
(Net of SBA Guaranteed Portions) | Quarter Ended | ||||
Non-Covered Loans | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sep 30, 2010 |
30 - 59 Days Past Due | $ 4,146 | $ 11,782 | $ 8,680 | $ 15,641 | $ 13,582 |
60 - 89 Days Past Due | 2,963 | 16,594 | 26,389 | 11,007 | 18,126 |
90 Days, and still accruing | 190 | -- | -- | -- | 304 |
Total Non-Covered Delinquent Loans | $ 7,299 | $ 28,376 | $ 35,069 | $ 26,648 | $ 32,012 |
Covered Loans | |||||
30 - 59 Days Past Due | $ 572 | $ 3,303 | $ 5,166 | $ 4,254 | $ 1,754 |
60 - 89 Days Past Due | 186 | 1,227 | 968 | 3,566 | 1,053 |
90 Days, and still accruing | -- | -- | -- | -- | -- |
Total Covered Delinquent Loans | $ 758 | $ 4,530 | $ 6,134 | $ 7,820 | $ 2,807 |
Total Delinquent Loans | |||||
30 - 59 Days Past Due | $ 4,718 | $ 15,085 | $ 13,846 | $ 19,895 | $ 15,336 |
60 - 89 Days Past Due | 3,149 | 17,821 | 27,357 | 14,573 | 19,179 |
90 Days, and still accruing | 190 | -- | -- | -- | 304 |
Total Delinquent Loans | $ 8,057 | $ 32,906 | $ 41,203 | $ 34,468 | $ 34,819 |
Of the total $8.1 million in delinquent loans at September 30, 2011, $4.1 million was made up of delinquent real estate secured loans and $3.9 million consists of commercial and industrial delinquent loans.
Loan Classifications
At September 30, 2011, total non-covered classified loans (loans graded substandard, doubtful, and loss) declined to $123.5 million from $158.0 million at June 30, 2011. Non-covered criticized loans (loans graded special mention) were $159.2 million at September 30, 2011, compared with $156.2 million at June 30, 2011.
Loan balances broken down by classification are reflected in the table below:
LOAN CLASSIFICATIONS (Dollars In Thousands) | |||||
Quarter Ended | |||||
Non-Covered Loans | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sep 30, 2010 |
Special Mention | $ 159,248 | $ 156,249 | $ 180,656 | $ 102,990 | $ 101,997 |
Substandard | 108,616 | 140,645 | 207,422 | 216,283 | 277,582 |
Doubtful | 14,911 | 17,367 | 10,231 | 11,306 | 964 |
Total Non-Covered Gross Loans | $ 282,775 | $ 314,261 | $ 398,309 | $ 330,579 | $ 380,543 |
Covered Loans | |||||
Special Mention | $ 14,342 | $ 12,639 | $ 20,554 | $ 15,618 | $ 15,644 |
Substandard | 25,180 | 35,006 | 31,755 | 30,836 | 34,150 |
Doubtful | 8,511 | 5,806 | 2,112 | 2,921 | 3,245 |
Total Covered Gross Loans | $ 48,033 | $ 53,451 | $ 54,421 | $ 49,375 | $ 53,039 |
Total Loans | |||||
Special Mention | $ 173,590 | $ 168,888 | $ 201,210 | $ 118,608 | $ 117,641 |
Substandard | 133,796 | 175,651 | 239,177 | 247,119 | 311,732 |
Doubtful | 23,422 | 23,173 | 12,343 | 14,227 | 4,209 |
Total Gross Loans | $ 330,808 | $ 367,712 | $ 452,730 | $ 379,954 | $ 433,582 |
Loan Charge-offs
Non-covered loan charge-offs for the third quarter of 2011 totaled $11.7 million, compared to $14.2 million in the second quarter of 2011. The decline in charge-offs is primarily due to lower charge-offs in the construction portfolio.
Charge-offs by loan type is reflected in the table below:
LOAN CHARGE-OFFS (Dollars In Thousands) | |||||
Quarter Ended | |||||
Non-Covered Loans | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sep 30, 2010 |
Construction | $ -- | $ 3,000 | $ 805 | $ 401 | $ -- |
Real Estate Secured | 8,507 | 9,012 | 39,062 | 60,317 | 12,445 |
Commercial & Industrial | 2,973 | 2,185 | 1,151 | 10,487 | 1,448 |
Consumer | 217 | 9 | 19 | 14 | 33 |
Total Non-Covered Charge-Offs Loans | $ 11,697 | $ 14,206 | $ 41,037 | $ 71,219 | $ 13,926 |
Covered Loans | |||||
Real Estate Secured | 436 | 16 | 171 | 252 | 324 |
Commercial & Industrial | 384 | (48) | 489 | 431 | 91 |
Total Covered Charge-Offs Loans | $ 820 | $ (32) | $ 660 | $ 683 | $ 415 |
Total Charge-Offs Loans | |||||
Construction | $ -- | $ 3,000 | $ 805 | $ 401 | $ -- |
Real Estate Secured | 8,943 | 9,028 | 39,233 | 60,569 | 12,769 |
Commercial & Industrial | 3,357 | 2,137 | 1,640 | 10,918 | 1,539 |
Consumer | 217 | 9 | 19 | 14 | 33 |
Total Charge-Offs Loans | $ 12,517 | $ 14,174 | $ 41,697 | $ 71,902 | $ 14,341 |
During the third quarter of 2011, the Company had $3.6 million in loan recoveries, most of which came from the non-covered loan portfolio. Non-covered loan net charge-offs (net of recoveries) totaled $8.1 million at the end of the third quarter of 2011 compared to net charge-offs of $13.9 million for the previous quarter.
Capital Ratios
As of September 30, 2011, the Company's Tier 1 Leverage ratio was 13.6%. The minimum required Tier 1 capital ratio for the Bank stated in the MOU is 10%, with which the Bank is in compliance.
In addition, all of the Company's capital ratios remain in excess of "well capitalized" regulatory requirements as shown in the following table:
(Dollars In thousands, except per share info) |
Sep 30, 2011 |
Well Capitalized Regulatory Requirements |
Total Excess Above Well Capitalized Requirements |
MOU Requirement |
Total Excess Above MOU Requirements |
Tier 1 Leverage Capital Ratio | 13.57% | 5.00% | $ 228,906 | 10.00% | 95,397 |
Tier 1 Risk-Based Capital Ratio | 18.73% | 6.00% | 246,304 | N/A | N/A |
Total Risk-Based Capital Ratio | 20.14% | 10.00% | 196,131 | N/A | N/A |
Tangible Common Equity To Tangible Assets | 8.71% | N/A | N/A | N/A | N/A |
Tangible Common Equity Per Common Share | $ 3.27 | N/A | N/A | N/A | N/A |
CONFERENCE CALL
Management will host its quarterly conference call on October 25, 2011, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing 866-203-3206 (domestic number) or 617-213-8848 (international number) and entering passcode #19305419.
COMPANY INFORMATION
Headquartered in Los Angeles, Wilshire State Bank operates 24 branch offices in California, Texas, New Jersey and New York, and six loan production offices in Dallas, Houston, Atlanta, Denver, Annandale, Virginia, and Fort Lee, 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. Visit us at www.wilshirebank.com. ;
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) (unaudited) | September 30, | June 30, | Three Months | September 30, | Twelve Months |
2011 | 2011 | % Change | 2010 | % Change | |
ASSETS: | |||||
Cash and Due from Banks | $ 99,875 | $ 97,499 | 2% | $ 108,411 | -8% |
Federal Funds Sold and Other Cash Equivalents | 150,005 | 115,005 | 30% | 201,006 | -25% |
Total Cash and Cash Equivalents | 249,880 | 212,504 | 18% | 309,417 | -19% |
Investment Securities Available For Sale | 356,148 | 307,309 | 16% | 367,433 | -3% |
Investment Securities Held To Maturity | 70 | 74 | -5% | 91 | -23% |
Total Investment Securities | 356,218 | 307,383 | 16% | 367,524 | -3% |
Loans: | |||||
Loans Held For Sale | 70,652 | 66,429 | 6% | 41,174 | 72% |
Real Estate Construction | 58,275 | 57,637 | 1% | 70,123 | -17% |
Residential Real Estate | 94,591 | 90,715 | 4% | 92,350 | 2% |
Commercial Real Estate | 1,478,281 | 1,558,067 | -5% | 1,884,977 | -22% |
Commercial and Industrial | 274,469 | 294,438 | -7% | 338,285 | -19% |
Consumer | 16,082 | 15,430 | 4% | 17,135 | -6% |
Total Loans Receivable | 1,921,698 | 2,016,287 | -5% | 2,402,870 | -20% |
Allowance For Loan Losses | (105,306) | (110,995) | -5% | (99,022) | 6% |
Loans, Net of Allowance for Loan Losses | 1,816,392 | 1,905,292 | -5% | 2,303,848 | -21% |
Accrued Interest Receivable | 7,739 | 8,082 | -4% | 12,839 | -40% |
Due from Customers on Acceptances | 255 | 509 | -50% | 269 | -5% |
Other Real Estate Owned | 9,284 | 8,499 | 9% | 15,996 | -42% |
Premises and Equipment | 13,053 | 13,243 | -1% | 13,771 | -5% |
Federal Home Loan Bank (FHLB) Stock, at Cost | 16,276 | 17,033 | -4% | 19,302 | -16% |
Cash Surrender Value of Life Insurance | 19,735 | 19,582 | 1% | 18,510 | 7% |
Investment in affordable housing partnerships | 33,147 | 33,697 | -2% | 29,389 | 13% |
Deferred Income Taxes | 17,143 | 19,112 | -10% | 28,138 | -39% |
Servicing Assets | 9,052 | 8,561 | 6% | 7,041 | 29% |
Goodwill | 6,675 | 6,675 | 0% | 6,675 | 0% |
FDIC Indemnification | 23,481 | 21,912 | 7% | 26,232 | -10% |
Other Assets | 31,736 | 32,739 | -3% | 32,560 | -2% |
TOTAL ASSETS | $ 2,680,718 | $ 2,681,252 | 0% | $ 3,232,685 | -17% |
LIABILITIES AND STOCKHOLDERS' EQUITY: | |||||
LIABILITIES: | |||||
Non-interest Bearing Demand Deposits | $ 468,596 | $ 449,270 | 4% | $ 453,333 | 3% |
Savings and Interest Checking | 116,044 | 110,097 | 5% | 102,414 | 13% |
Money Market Deposits | 551,152 | 587,442 | -6% | 790,779 | -30% |
Time Deposits in denomination of $100,000 or more | 656,847 | 646,238 | 2% | 733,724 | -10% |
Other Time Deposits | 356,875 | 360,825 | -1% | 626,498 | -43% |
Total Deposits | 2,149,514 | 2,153,872 | 0% | 2,706,748 | -21% |
FHLB borrowings and Federal Funds Purchased | 110,000 | 110,000 | 0% | 131,547 | -16% |
Acceptance Outstanding | 255 | 509 | -50% | 269 | -5% |
Junior Subordinated Debentures | 87,321 | 87,321 | 0% | 87,321 | 0% |
Accrued Interest Payable | 2,728 | 3,651 | -25% | 4,357 | -37% |
Other Liabilities | 29,059 | 35,730 | -19% | 31,115 | -7% |
Total Liabilities | 2,378,877 | 2,391,083 | -1% | 2,961,357 | -20% |
STOCKHOLDERS' EQUITY: | |||||
Preferred Stock | 60,859 | 60,721 | 0% | 60,317 | 1% |
Common Stock | 164,650 | 164,585 | 0% | 55,513 | 197% |
Retained Earnings | 71,292 | 61,106 | 17% | 151,398 | -53% |
Accumulated Other Comprehensive Income | 5,040 | 3,757 | 34% | 4,100 | 23% |
Total Stockholders' Equity | 301,841 | 290,169 | 4% | 271,328 | 11% |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,680,718 | $ 2,681,252 | 0% | $ 3,232,685 | -17% |
CONSOLIDATED STATEMENT OF OPERATIONS | |||||||
(dollars in thousands, except per share data) (unaudited) | |||||||
Quarter Ended |
|
Quarter Ended |
|||||
September 30, 2011 | June 30, 2011 | % Change | September 30, 2010 | % Change | |||
INTEREST INCOME | |||||||
Interest and Fees on Loans | $ 28,966 | $ 30,767 | -6% | $ 36,452 | -21% | ||
Interest on Investment Securities | 1,651 | 2,156 | -23% | 2,804 | -41% | ||
Interest on Federal Funds Sold | 340 | 74 | 359% | 515 | -34% | ||
Total Interest Income | 30,957 | 32,997 | -6% | 39,771 | -22% | ||
INTEREST EXPENSE | |||||||
Deposits | 4,461 | 4,663 | -4% | 8,688 | -49% | ||
FHLB Advances and Other Borrowings | 974 | 999 | -3% | 1,431 | -32% | ||
Total Interest Expense | 5,435 | 5,662 | -4% | 10,119 | -46% | ||
Net Interest Income Before Provision for Losses on Loans | |||||||
and Loan Commitments | 25,522 | 27,335 | -7% | 29,652 | -14% | ||
Provision for Losses on Loans and Loan Commitments | 2,500 | 10,300 | -76% | 18,000 | -86% | ||
Net Interest Income After Provision for Losses on Loans | |||||||
and Loan Commitments | 23,022 | 17,035 | 35% | 11,652 | 98% | ||
NONINTEREST INCOME | |||||||
Service Charges on Deposits | 3,189 | 3,149 | 1% | 3,071 | 4% | ||
Loans Held For Sale Valuation | (394) | (2,324) | -83% | -- | 0% | ||
Gain (Loss) on Sales of Loans, Net | 2,143 | (1,282) | -267% | 2,723 | -21% | ||
Gain on Sale of Investment Securities | 52 | 6 | 767% | 2,600 | -98% | ||
Other | 2,669 | 2,179 | 22% | 1,652 | 62% | ||
Total Noninterest Income | 7,659 | 1,728 | 343% | 10,046 | -24% | ||
NONINTEREST EXPENSES | |||||||
Salaries and Employee Benefits | 6,827 | 6,753 | 1% | 7,458 | -8% | ||
Occupancy & Equipment | 1,899 | 2,053 | -8% | 1,921 | -1% | ||
Data Processing | 710 | 773 | -8% | 702 | 1% | ||
Other | 9,031 | 7,035 | 28% | 4,692 | 92% | ||
Total Noninterest Expenses | 18,467 | 16,614 | 11% | 14,773 | 25% | ||
Income (Loss) Before Income Taxes | 12,214 | 2,149 | 468% | 6,925 | 76% | ||
Income Taxes Provision (Benefit) | 1,112 | (877) | -227% | 1,945 | -43% | ||
NET INCOME | $ 11,102 | $ 3,026 | 267% | $ 4,980 | 123% | ||
Preferred Stock Cash Dividend and Accretion of | |||||||
Preferred Stock Discount | 916 |
913 |
0% | 908 | 1% | ||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 10,186 | $ 2,113 | 382% | $ 4,072 | 150% | ||
PER COMMON SHARE INFORMATION | |||||||
Basic Income Per Common Share | $ 0.14 | $ 0.04 | 239% | $ 0.14 | 3% | ||
Diluted Income Per Common Share | $ 0.14 | $ 0.04 | 239% | $ 0.14 | 4% | ||
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | |||||||
Basic | 71,291,614 | 50,151,459 | 29,486,734 | ||||
Diluted | 71,306,813 | 50,165,970 | 29,509,153 |
CONSOLIDATED STATEMENT OF OPERATIONS | |||
(dollars in thousands, except per share data) (unaudited) | |||
Nine Months Ended |
|||
September 30, 2011 |
September 30, 2010 |
% Change |
|
INTEREST INCOME | |||
Interest and Fees on Loans | $ 93,195 | $ 107,835 | -14% |
Interest on Investment Securities | 5,790 | 13,175 | -56% |
Interest on Federal Funds Sold | 594 | 1,191 | -50% |
Total Interest Income | 99,579 | 122,201 | -19% |
INTEREST EXPENSE | |||
Deposits | 14,235 | 30,338 | -53% |
FHLB Advances and Other Borrowings | 3,192 | 4,414 | -28% |
Total Interest Expense | 17,427 | 34,752 | -50% |
Net Interest Income Before Provision for Losses on Loans | |||
and Loan Commitments | 82,152 | 87,449 | -6% |
Provision for Losses on Loans and Loan Commitments | 57,600 | 67,200 | -14% |
Net Interest Income After Provision for Losses on Loans | |||
and Loan Commitments | 24,552 | 20,249 | 21% |
NONINTEREST INCOME | |||
Service Charges on Deposits | 9,418 | 9,510 | -1% |
Loans Held For Sale Valuation | (2,718) | -- | 0% |
Gain on Sales of Loans | 4,453 | 4,203 | 6% |
Gain on Sale of Investment Securities | 95 | 8,742 | -99% |
Other | 6,800 | 5,255 | 29% |
Total Noninterest Income | 18,048 | 27,710 | -35% |
NONINTEREST EXPENSES | |||
Salaries and Employee Benefits | 21,397 | 21,856 | -2% |
Occupancy & Equipment | 5,933 | 6,048 | -2% |
Data Processing | 2,195 | 2,029 | 8% |
Other | 23,019 | 15,663 | 47% |
Total Noninterest Expenses | 52,544 | 45,596 | 15% |
(Loss) Income Before Income Taxes | (9,944) | 2,363 | -521% |
Income Taxes Provision (Benefit) | 27,122 | (2,268) | -1296% |
NET (LOSS) INCOME | $ (37,066) | $ 4,631 | -900% |
Preferred Stock Cash Dividend and Accretion of | |||
Preferred Stock Discount | 2,741 | 2,717 | 1% |
NET (LOSS) INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ (39,807) | $ 1,914 | -2180% |
PER COMMON SHARE INFORMATION | |||
Basic (Loss) Income Per Common Share | $ (0.79) | $ 0.06 | -1315% |
Diluted (Loss) Income Per Common Share | $ (0.79) | $ 0.06 | -1317% |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | |||
Basic | 50,459,623 | 29,486,255 | |
Diluted | 50,459,623 | 29,530,600 | |
SUMMARY OF FINANCIAL DATA | |||||||||
(dollars in thousands, except per share data) (unaudited) | |||||||||
Quarter Ended | |||||||||
AVERAGE BALANCES | September 30, 2011 | June 30, 2011 | September 30, 2010 | ||||||
Average Assets | $ 2,687,448 | $ 2,750,894 | $ 3,348,434 | ||||||
Average Equity | 298,323 | 218,551 | 274,845 | ||||||
Average Net Loans | 1,926,310 | 2,072,244 | 2,372,428 | ||||||
Average Deposits | 2,154,234 | 2,198,081 | 2,810,176 | ||||||
Average Time Deposits in denomination of $100,000 or more | 650,453 | 654,647 | 743,966 | ||||||
Average Interest Earning Assets | 2,437,040 | 2,496,763 | 3,049,288 | ||||||
Nine Months Ended | |||||||||
AVERAGE BALANCES | September 30, 2011 | September 30, 2010 | |||||||
Average Assets | $ 2,785,893 | $ 3,413,486 | |||||||
Average Equity | 249,743 | 274,536 | |||||||
Average Net Loans | 2,071,142 | 2,366,651 | |||||||
Average Deposits | 2,221,761 | 2,878,455 | |||||||
Average Time Deposits in denomination of $100,000 or more | 660,156 | 754,610 | |||||||
Average Interest Earning Assets | 2,517,792 | 3,126,065 | |||||||
Quarter Ended | |||||||||
PROFITABILITY | September 30, 2011 | June 30, 2011 | September 30, 2010 | ||||||
Annualized Return on Average Assets | 1.65% | 0.44% | 0.59% | ||||||
Annualized Return on Average Equity | 14.89% | 5.54% | 7.25% | ||||||
Efficiency Ratio | 55.66% | 57.17% | 37.21% | ||||||
Annualized Operating Expense/Average Assets | 2.75% | 2.42% | 1.76% | ||||||
Annualized Net Interest Margin | 4.23% | 4.42% | 3.93% | ||||||
Nine Months Ended | |||||||||
PROFITABILITY | September 30, 2011 | September 30, 2010 | |||||||
Annualized Return on Average Assets | -1.77% | 0.18% | |||||||
Annualized Return on Average Equity | -19.79% | 2.25% | |||||||
Efficiency Ratio | 52.44% | 39.59% | |||||||
Annualized Operating Expense/Average Assets | 2.51% | 1.78% | |||||||
Annualized Net Interest Margin | 4.39% | 3.77% | |||||||
As Of | |||||||||
DEPOSIT COMPOSITION |
September 30, 2011 |
Cost of Funds |
June 30, 2011 |
Cost of Funds |
September 30, 2010 |
Cost of Funds |
|||
Noninterest Bearing Demand Deposits | 21.8% | 0.00% | 20.9% | 0.00% | 16.7% | 0.00% | |||
Savings & Interest Checking | 5.4% | 2.26% | 5.1% | 2.31% | 3.8% | 2.44% | |||
Money Market Deposits | 25.6% | 0.92% | 27.3% | 0.93% | 29.3% | 1.17% | |||
Time Deposits of $100,000 or More | 30.6% | 0.95% | 29.9% | 0.97% | 27.1% | 1.32% | |||
Other Time Deposits | 16.6% | 1.07% | 16.8% | 1.11% | 23.1% | 1.86% | |||
Total Deposits | 100.0% | 0.83% | 100.0% | 0.85% | 100.0% | 1.24% | |||
As Of | |||||||||
CAPITAL RATIOS | September 30, 2011 | June 30, 2011 | September 30, 2010 | ||||||
Tier 1 Leverage Ratio | 13.57% | 12.88% | 10.01% | ||||||
Tier 1 Risk-Based Capital Ratio | 18.73% | 17.70% | 14.10% | ||||||
Total Risk-Based Capital Ratio | 20.14% | 19.10% | 15.56% | ||||||
Total Shareholders' Equity | $ 301,841 | $ 290,169 | $ 271,328 | ||||||
Book Value Per Common Share | $ 3.38 | $ 3.22 | $ 7.16 | ||||||
Tangible Common Equity Per Common Share * | $ 3.27 | $ 3.10 | $ 6.87 | ||||||
Tangible Common Equity to Tangible Assets ** | 8.71% | 8.28% | 6.28% | ||||||
* Tangible common equity excludes goodwill, other intangible assets, and TARP preferred stock |
|||||||||
** Tangible assets excludes goodwill and intangible assets |
ALLOWANCE FOR LOAN LOSSES | ||||||
(dollars in thousands) (unaudited) | Quarter Ended | |||||
September 30, 2011 | June 30, 2011 | March 31, 2011 | December 31, 2010 | September 30, 2010 | ||
Balance at Beginning of Period | $ 110,995 | $ 114,842 | $ 110,953 | $ 99,020 | $ 91,419 | |
Provision for Losses on Loans | 3,180 | 10,123 | 44,800 | 82,600 | 17,999 | |
FDIC Indemnification | -- | -- | -- | -- | 2,953 | |
Recoveries on loans previously charged-off | 3,648 | 204 | 786 | 1,235 | 990 | |
Less Charge-offs | (12,517) | (14,174) | (41,697) | (71,902) | (14,341) | |
Balance at End of Period | $ 105,306 | $ 110,995 | $ 114,842 | $ 110,953 | $ 99,020 | |
Net Loan Charge-offs/Average Total Loans | 0.46% | 0.67% | 1.84% | 3.03% | 0.56% | |
Charge-offs/Average Total Loans | 0.65% | 0.68% | 1.88% | 3.08% | 0.60% | |
Allowance for Loan Losses/Gross Loans | 5.27% | 5.32% | 5.02% | 4.76% | 4.04% | |
Allowance for Loan Losses/Legacy Wilshire Loans | 5.78% | 5.86% | 5.50% | 5.23% | 4.44% | |
Allowance for Loan Losses/Non-accrual Loans | 186.50% | 142.41% | 143.31% | 155.76% | 129.70% | |
Allowance for Loan Losses/Legacy Non-accrual Loans | 266.36% | 186.86% | 185.02% | 182.24% | 157.80% | |
Allowance for Loan Losses/Non-performing Loans | 185.87% | 142.41% | 143.31% | 155.76% | 129.18% | |
Allowance for Loan Losses/Legacy Non-performing Loans | 265.09% | 186.86% | 185.02% | 182.24% | 157.04% | |
Allowance for Loan Losses/Non-performing Assets | 159.70% | 128.41% | 129.55% | 128.69% | 106.88% | |
Allowance for Loan Losses/Legacy Non-performing Assets | 217.82% | 167.16% | 164.68% | 151.35% | 136.44% | |
NON-PERFORMING ASSETS | ||||||
(net of SBA guaranteed portions) | Quarter Ended | |||||
September 30, 2011 | June 30, 2011 | March 31, 2011 | December 31, 2010 | September 30, 2010 | ||
Nonaccrual Loans: | ||||||
Non-covered | $ 39,535 | $ 59,399 | $ 62,069 | $ 60,882 | $ 62,749 | |
Covered | 16,930 | 18,543 | 18,064 | 10,350 | 13,599 | |
Total | 56,465 | 77,942 | 80,133 | 71,232 | 76,348 | |
Loans 90 days or more past due and still accruing: | ||||||
Non-covered | 190 | -- | -- | -- | 304 | |
Covered | -- | -- | -- | -- | -- | |
Total | 190 | -- | -- | -- | 304 | |
Total Nonperforming Loans: | ||||||
Non-covered | 39,725 | 59,399 | 62,069 | 60,882 | 63,053 | |
Covered | 16,930 | 18,543 | 18,064 | 10,350 | 13,599 | |
Total | 56,655 | 77,942 | 80,133 | 71,232 | 76,652 | |
OREO and Repossessed Vehicles: | ||||||
Non-covered | 8,620 | 7,001 | 7,668 | 12,429 | 9,519 | |
Covered | 664 | 1,498 | 844 | 2,554 | 6,477 | |
Total | 9,284 | 8,499 | 8,512 | 14,983 | 15,996 | |
Total Nonperforming Assets: | ||||||
Non-covered | 48,345 | 66,400 | 69,737 | 73,311 | 72,572 | |
Covered | 17,594 | 20,041 | 18,908 | 12,904 | 20,076 | |
Total | $ 65,939 | $ 86,441 | $ 88,645 | $ 86,215 | $ 92,648 | |
Total Nonperforming Loans/Gross Loans | 2.84% | 3.73% | 3.50% | 3.06% | 3.13% | |
Total Legacy Nonperforming Loans/Legacy Gross Loans | 2.18% | 3.13% | 2.97% | 2.87% | 2.83% | |
Total Nonperforming Assets/Total Assets | 2.46% | 3.22% | 3.18% | 2.90% | 2.87% | |
Total Legacy Nonperforming Assets/Total Assets | 1.80% | 2.48% | 2.50% | 2.47% | 2.24% | |
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS | Quarter Ended | Nine Months Ended | |||
(Dollars In Thousands) | Sep 30, 2011 | Sep 30, 2010 | Sep 30, 2011 | Sep 30, 2010 | |
Balance at beginning of period | $ 4,103 | $ 3,516 | $3,926 | $2,515 | |
(Recapture) provision for losses on off-balance sheet items | (680) | (590) | (503) | 411 | |
Balance at end of period | $ 3,423 | $ 2,926 | $ 3,423 | $ 2,926 | |
Reconciliation of GAAP financial measures to non-GAAP financial measures: | |||
Tangible Common Equity and Tangible Assets (dollars in thousands, except per share data) (unaudited) | |||
Quarter Ended | |||
September 30, 2011 | June 30, 2011 | September 30, 2010 | |
Total stockholders' equity | $ 301,841 | $ 290,169 | $ 271,328 |
Preferred stock, net of discount | (60,859) | (60,721) | (60,317) |
Goodwill and other intangible assets, net | (8,077) | (8,158) | (8,412) |
Tangible common equity | $ 232,905 | $ 221,290 | $ 202,599 |
Total assets | $ 2,680,718 | $ 2,681,252 | $ 3,232,685 |
Goodwill and other intangible assets, net | (8,077) | (8,158) | (8,412) |
Tangible assets | $ 2,672,641 | $ 2,673,094 | $ 3,224,273 |
Common shares outstanding | 71,291,614 | 71,291,614 | 29,486,734 |
WILSHIRE BANCORP, INC. AND SUBSIDIARIES | ||||||||||
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID | ||||||||||
(dollars in thousands) (unaudited) | ||||||||||
For the Quarter Ended | ||||||||||
September 30, 2011 | June 30, 2011 | September 30, 2010 | ||||||||
Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | ||
Balance | Income/ | Yield/ | Balance | Income/ | Yield/ | Balance | Income/ | Yield/ | ||
Expense | Rate | Expense | Rate | Expense | Rate | |||||
INTEREST EARNING ASSETS | ||||||||||
Real Estate Loans | $1,739,729 | $24,388 | 5.61% | $ 1,883,055 | $26,075 | 5.54% | $2,083,533 | $30,764 | 5.91% | |
Commercial Loans | 287,359 | 3,772 | 5.25% | 299,078 | 3,873 | 5.18% | 365,201 | 4,853 | 5.32% | |
Consumer Loans | 15,827 | 135 | 3.41% | 14,809 | 114 | 3.08% | 18,508 | 156 | 3.37% | |
Total Gross Loans | 2,042,915 | 28,295 | 5.54% | 2,196,942 | 30,062 | 5.47% | 2,467,242 | 35,773 | 5.80% | |
Loan Fees toward Yield | 671 | 705 | 679 | |||||||
Allowance for Loan Losses & Unearned Income | (116,605) | (124,698) | (94,814) | |||||||
Net Loans | 1,926,310 | 28,966 | 6.01% | 2,072,244 | 30,767 | 5.94% | 2,372,428 | 36,452 | 6.15% | |
INVESTMENT SECURITIES AND | ||||||||||
OTHER INTEREST-EARNING ASSETS: | ||||||||||
Investment Securities* | 306,272 | 1,651 | 2.45% | 333,044 | 2,156 | 2.86% | 449,153 | 2,804 | 2.76% | |
Federal Funds Sold | 204,458 | 340 | 0.67% | 91,475 | 74 | 0.32% | 227,707 | 515 | 0.90% | |
Total Investment Securities and | ||||||||||
Other Earning Assets | 510,730 | 1,991 | 1.74% | 424,519 | 2,230 | 2.32% | 676,860 | 3,319 | 2.13% | |
TOTAL INTEREST-EARNING ASSETS | $ 2,437,040 | $30,957 | 5.12% | $ 2,496,763 | $32,997 | 5.32% | $ 3,049,288 | $39,771 | 5.26% | |
INTEREST BEARING LIABILITIES | ||||||||||
INTEREST-BEARING DEPOSITS: | ||||||||||
Money Market | $570,176 | $1,317 | 0.92% | $600,686 | $1,404 | 0.93% | $858,437 | $2,507 | 1.17% | |
NOW | 23,657 | 21 | 0.36% | 22,724 | 20 | 0.35% | 21,706 | 23 | 0.42% | |
Savings | 91,619 | 631 | 2.75% | 86,382 | 609 | 2.82% | 78,848 | 590 | 2.99% | |
Time Deposits of $100,000 or More | 650,453 | 1,540 | 0.95% | 654,647 | 1,587 | 0.97% | 743,966 | 2,454 | 1.32% | |
Other Time Deposits | 357,289 | 952 | 1.07% | 374,346 | 1,043 | 1.11% | 668,873 | 3,114 | 1.86% | |
Total Interest Bearing Deposits | 1,693,194 | 4,461 | 1.05% | 1,738,785 | 4,663 | 1.07% | 2,371,830 | 8,688 | 1.47% | |
BORROWINGS: | ||||||||||
FHLB Advances and Other Borrowings | 110,000 | 483 | 1.76% | 188,967 | 505 | 1.07% | 140,156 | 758 | 2.16% | |
Junior Subordinated Debentures | 87,321 | 491 | 2.25% | 87,321 | 494 | 2.26% | 87,321 | 673 | 3.08% | |
Total Borrowings | 197,321 | 974 | 1.97% | 276,288 | 999 | 1.45% | 227,477 | 1,431 | 2.52% | |
TOTAL INTEREST BEARING LIABILITIES | $ 1,890,515 | $5,435 | 1.15% | $ 2,015,073 | $5,662 | 1.12% | $ 2,599,307 | $10,119 | 1.56% | |
NET INTEREST INCOME | $25,522 | $27,335 | $29,652 | |||||||
NET INTEREST SPREAD | 3.97% | 4.20% | 3.70% | |||||||
NET INTEREST MARGIN | 4.23% | 4.42% | 3.93% | |||||||
* Tax equivalent ratios for investment securities |
WILSHIRE BANCORP, INC. AND SUBSIDIARIES | ||||||
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID | ||||||
(dollars in thousands) (unaudited) | ||||||
For the Nine Months Ended | ||||||
September 30, 2011 | September 30, 2010 | |||||
Average | Interest | Average | Average | Interest | Average | |
Balance | Income/ | Yield/ | Balance | Income/ | Yield/ | |
Expense | Rate | Expense | Rate | |||
INTEREST EARNING ASSETS | ||||||
Real Estate Loans | $1,871,839 | $78,119 | 5.56% | $2,057,770 | $89,665 | 5.81% |
Commercial Loans | 304,528 | 12,237 | 5.36% | 375,481 | 15,524 | 5.51% |
Consumer Loans | 15,249 | 370 | 3.24% | 17,531 | 516 | 3.92% |
Total Gross Loans | 2,191,616 | 90,726 | 5.52% | 2,450,782 | 105,705 | 5.75% |
Loan Fees toward Yield | 2,469 | 2,130 | ||||
Allowance for Loan Losses & Unearned Income | (120,474) | (84,131) | ||||
Net Loans | 2,071,142 | 93,195 | 6.00% | 2,366,651 | 107,835 | 6.08% |
INVESTMENT SECURITIES AND | ||||||
OTHER INTEREST-EARNING ASSETS: | ||||||
Investment Securities* | 324,566 | 5,790 | 2.66% | 586,641 | 13,175 | 3.20% |
Federal Funds Sold | 122,084 | 594 | 0.65% | 172,773 | 1,191 | 0.92% |
Total Investment Securities and | ||||||
Other Earning Assets | 446,650 | 6,384 | 2.11% | 759,414 | 14,366 | 2.68% |
TOTAL INTEREST-EARNING ASSETS | $ 2,517,792 | $99,579 | 5.31% | $3,126,065 | $122,201 | 5.25% |
INTEREST BEARING LIABILITIES | ||||||
INTEREST-BEARING DEPOSITS: | ||||||
Money Market | $604,766 | $4,128 | 0.91% | $928,498 | $10,071 | 1.45% |
NOW | 23,702 | 64 | 0.36% | 22,066 | 78 | 0.47% |
Savings | 87,786 | 1,839 | 2.79% | 76,210 | 1,793 | 3.14% |
Time Deposits of $100,000 or More | 660,156 | 4,817 | 0.97% | 754,610 | 8,265 | 1.46% |
Other Time Deposits | 384,872 | 3,387 | 1.17% | 682,422 | 10,131 | 1.98% |
Total Interest Bearing Deposits | 1,761,282 | 14,235 | 1.08% | 2,463,806 | 30,338 | 1.64% |
BORROWINGS: | ||||||
FHLB Advances and Other Borrowings | 182,794 | 1,718 | 1.25% | 142,292 | 2,428 | 2.28% |
Junior Subordinated Debentures | 87,321 | 1,474 | 2.25% | 87,321 | 1,986 | 3.03% |
Total Borrowings | 270,115 | 3,192 | 1.58% | 229,613 | 4,414 | 2.56% |
TOTAL INTEREST BEARING LIABILITIES | $ 2,031,397 | $17,427 | 1.14% | $2,693,419 | $34,752 | 1.72% |
NET INTEREST INCOME | $82,152 | $87,449 | ||||
NET INTEREST SPREAD | 4.17% | 3.53% | ||||
NET INTEREST MARGIN | 4.39% | 3.77% | ||||
* Tax equivalent ratios for investment securities |