LOS ANGELES, Jan. 26, 2009 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq:WIBC), the holding company for Wilshire State Bank, today reported that net income was $5.1 million, or $0.17 per diluted share, in the fourth quarter of 2008, as compared with $5.5 million, or $0.19 per diluted share, in the fourth quarter a year ago. We prudently increased the provision for loan losses in the fourth quarter of 2008 to address the current unstable economic environment. The allowance for loan losses to gross loans ratio increased to 1.43% at December 31, 2008, as compared with 1.28% at September 30, 2008. For the year 2008, net income was $26.5 million, or $0.90 per diluted share, as compared with $26.8 million, or $0.91 per diluted share, in 2007.
"Our prudent credit loss provision during the current quarter and the strong capital level at the end of the current quarter reflect our commitment to run our operation conservatively and confront challenges directly in this unstable economic environment," stated Ms. Joanne Kim, President and CEO.
FOURTH QUARTER 2008 FINANCIAL HIGHLIGHTS:
-- Capital position remained strong with total risk based capital
ratio at 17.09%, as compared with 14.01% in 3Q08.
-- Loan loss provision increased to $5.9 million, as compared with
$3.4 million in 3Q08.
-- Allowance for loan losses to gross loans ratio increased to 1.43%
from 1.28% in 3Q08.
-- Average net loan portfolio increased at an annualized 6.3% to
$2.01 billion, as compared with $1.98 in 3Q08.
-- Net interest margin decreased to 3.73% from 3.86% in 3Q08.
-- Efficiency ratio improved to 44.1% from 46.0% in 3Q08.
CREDIT QUALITY
Wilshire is working closely to monitor for credit deterioration, and its management team is taking proactive steps to mitigate potential risk in the entire loan portfolio. Non-performing loans, delinquent loans, and net charge offs are remained under management control during the fourth quarter of 2008
"Due to the current difficult economic environment, we experienced elevated levels of classified loans, which exhibited weakness and deserve management's close attention," said Ms. Kim. "To early identify credit weakness in this economic environment, we conducted a comprehensive loan review. The review included over $980 million loans, in the aggregate or approximately 48% of our total portfolio during the current quarter. Based upon this review, we aggressively downgraded potential problem loans that warrant closer monitoring effort. While doubtful classified loans decreased, substandard loans increased to $92.6 million at December 31, 2008, from $69.2 million at September 30, 2008."
Primarily attributable to an increase in classified loan, Wilshire recorded $5.9 million of provision for loan losses, while gross charge offs amounted $2.6 million in the fourth quarter of 2008, as compared with $3.4 million provision in the third quarter of 2008.
Among the classified loans at December 31, 2008, $67.8 million, or 70.6% are commercial real estate loans, while commercial and industrial loans and home loans are $15.4 million and $6.6 million, respectively. 90% of commercial real estate loans that are classified substandard or worse are performing and the weighted average loan to value is 65%. Historical loss amount and percentage as of total commercial real estate loans including SBA real estate loans are $728,000 (0.05%), $785,000 (0.06%), $138,000 (0.01%) in 2008, 2007, and 2006, respectively.
Gross loan charge offs increased to $2.6 million during the quarter, as compared with $1.5 million in the third quarter of 2008 and $4.3 million in the fourth quarter 2007. $1.7 million or 65% of total charge offs consist of commercial and industrial loans, $480,000 or 18% consists of commercial real estate loans, and $343,000 or 13% consists of residential real estate loans as of December 31, 2008. Net quarterly charge off (non -annualized) to average gross loans increased from 0.07% at September 30, 2008 to 0.12% at December 31, 2008.
Non-performing loans slightly increased to $15.6 million, or 0.76% of gross loans at December 31, 2008, as compared with $13.7 million, or 0.67% of gross loans, at September 30, 2008 and $10.6 million, or 0.59% of gross loans, at December 31, 2007. Non-performing loans consist $9.3 million or 60% of commercial real estate loans, and $6.1 million or 39% of commercial and industrial loans. We timely conduct new appraisals. At a minimum, we conduct new appraisals when loans become classified or nonaccrual. The weighted average loan to liquidation value, less selling costs of these non-performing commercial real estate loans, is 61.3%.
The increase of $2.1 million in nonaccrual loans from September 30, 2008 is mainly attributable to one commercial line of credit in the amount of $2 million extended to a borrower. This loan is classified as impaired and the bank recorded a specific reserve based upon a recent appraisal, in accordance with Statement of Financial Accounting Standards (SFAS) No.114 impairment analysis.
Wilshire's real estate owned and repossessed assets were $2.7 million at December 31, 2008, as compared with $1.5 million at the end of the previous quarter and $0.2 million at December 31, 2007.
CAPITAL POSITION
Wilshire's capital ratios remain strong and continue to exceed the "well capitalized" guidelines established by regulatory agencies. The leverage ratio was 10.37% at December 31, 2008, as compared with 10.19% at September 30, 2008, and 10.36% at December 31, 2007. The total risk-based capital ratio was 17.09% at December 31, 2008, as compared with 14.01% at September 30, 2008, and 14.58% at December 31, 2007.
On December 12, 2008, Wilshire issued $62.2 million in preferred stocks and warrants to the U.S. Department of the Treasury (U.S. Treasury) as part of the Treasury's Capital Purchase Program. The $62.2 million of preferred stock issued to the U.S. Treasury qualifies as Tier 1 capital and increased Wilshire's already well capitalized status. The warrant that was issued to the U.S. Treasury is exercisable initially for 949,460 shares of Wilshire's common stock, with an exercise price of $9.82 per share.
Wilshire is implementing its plans to deploy the capital invested by the U.S. Treasury to, among other things, make credit available to consumers, small businesses and commercial companies. During the fourth quarter, the U.S. Treasury's investment strengthened the company's capital and supported the origination of new loans. In addition, the additional capital gives Wilshire even more flexibility in considering strategic opportunities for growth in its primary markets.
BALANCE SHEET
Total loans increased 13% to $2.02 billion at December 31, 2008, as compared with $1.79 billion a year ago. Commercial real estate loans comprised 74.0% of the loan portfolio at December 31, 2008. "We continue to reduce our exposure to construction loans, which accounted for only 2.1% of our loan portfolio at year-end, and we do not have any land development loans in our portfolio." Commercial and industrial loans account for 18.9% of total loans and consumer loans make up 1.2% of total loans as of December 31, 2008.
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, Wilshire considers "subprime loans" to be loans made to a borrower with a diminished or impaired credit rating or with a limited credit history.
Total assets increased 12% to $2.45 billion at December 31, 2008, as compared with $2.20 billion a year ago and total deposits increased 3% to $1.81 billion at year-end, as compared with $1.76 billion a year ago. "We continue to experience stiff competition in our markets for core deposits, which led to a decrease in core deposit account balances compared to a year ago," said Mr. Alex Ko, CFO. Core deposits were $910 million or 50% at December 31, 2008, as compared with $974 million or 55% of total deposit a year ago. Savings and interest checking account balances increased 24% compared to a year ago and time deposits under $100,000 increased 43% from a year ago.
A majority of the loan growth during the fourth quarter of 2008 was funded by customer deposits, which resulted in a decrease in FHLB borrowing from the previous quarter. FHLB borrowings were $260 million at December 31, 2008, as compared with $300 million at the end of September 2008.
At December 31, 2008, the investment portfolio allocation was 94% United States Government agency securities, 3% corporate securities and 3% municipal securities, with 95% of the portfolio carrying the top rating of "Aaa/AAA," while the remaining 5% of the portfolio carrying an intermediate "Investment Grade" rating of at least "Baa1/BBB+" or above. The investment portfolio does not contain any government sponsored enterprises (GSE) preferred securities or any distressed corporate securities that had required other-than-temporary-impairment charges during the fourth quarter of 2008.
NET INTEREST MARGIN
A series of reductions in the federal funds rate effectively lowered the average interest rate earned for the fourth quarter of 2008, which contributed to a contraction in our net interest margin during the fourth quarter of 2009, as compared with the previous quarter," said Mr. Ko. The net interest margin was 3.73% in the fourth quarter of 2008, as compared with 3.86% in the previous quarter and 4.15% in the fourth quarter a year ago. For the year 2008, the net interest margin was 3.80%, as compared with 4.28% for 2007.
In the fourth quarter of 2008, the weighted average yield of the loan portfolio decreased 33 basis points to 6.69% from 7.02% in the preceding quarter. Deposit cost during the quarter also decreased, with the average cost on total interest bearing deposits decreasing 21 basis points to 3.18%, as compared with 3.39% during the previous quarter, with time deposit of $100,000 or more cost decreasing 31 basis points to 3.17% during the fourth quarter, as compared with 3.48% in the previous quarter.
The weighted average cost of interest-bearing liabilities for the fourth quarter decreased 27 basis points to 3.19% from 3.46% for the preceding quarter. The decrease was due to disciplined pricing during the quarter. "While we continue to use FHLB advances as a cost effective alternative to our funding needs, our primary goal is to continue to fund loan growth with low-cost core deposits," said Mr. Ko.
INCOME STATEMENT AND PERFORMANCE METRICS
In the fourth quarter of 2008, interest income was down 9% and interest expense was down 22%, as compared with the fourth quarter of 2007. Net interest income increased 3% to $21.1 million at December 31, 2008, from $20.5 million in the fourth quarter of 2007, and it was down 1%, as compared with the third quarter of 2008. Total noninterest income decreased 22% to $4.5 million at December 31, 2008, as compared with $5.8 million in the fourth quarter a year ago. Service charges on deposits grew by 18% to $3.0 million during the fourth quarter of 2008, as compared with $2.6 million in the fourth quarter a year ago. This increase is largely due to effective deposit service fee management. However, the increase in the noninterest income from service charges was offset by a decrease in SBA loan sales during the fourth quarter.
For the year of 2008, interest income was down 6% and interest expense was down 13%, as compared with 2007. Net interest income increased 2% to $82.6 million, from $81.4 million in 2007. Total noninterest income was $20.6 million in 2008, as compared with $22.6 million in 2007.
SBA loan production levels decreased 50.8% to $9.2 million in the fourth quarter of 2008, as compared with $18.7 million in the fourth quarter a year ago, reflecting the overall weaker economic environment and tougher underwriting standards. The average sales premium of SBA 7(a) guaranteed loans was lower in 2008, as compared with the prior year. The lowered premium of SBA 7(a) guaranteed loans resulted in no sale of loans in the fourth quarter of 2008.
"During the fourth quarter of 2008, $1.4 million was credited from the true-up of accruals for the discretionary bonus plan and reduction of employees, which led to the decrease in noninterest expense compared to the year ago quarter," said Mr. Ko. Total noninterest expense was $11.3 million in the fourth quarter of 2008, as compared with $12.3 million in the previous quarter and $12.7 million in the fourth quarter a year ago. For the year, total noninterest expense was $48.4 million, as compared with $44.8 million a year ago. The year-to-date increase is primarily attributable to various expenses associated with the new Los Angeles branch that opened in the third quarter of 2008.
The efficiency ratio improved to 44.1% in the fourth quarter of 2008, as compared with 46.0% in the immediately preceding quarter and 48.1% in the fourth quarter a year ago. For the year 2008, the efficiency ratio was 46.9%, as compared with 43.1% a year earlier.
Primarily due to the California Enterprise Zone Net Interest Deduction (NID) reversal, our effective tax rate for the fourth quarter of 2008 slightly increased to 39.3%, as compared with 37.9% in the prior quarter and 38.4% in the fourth quarter a year ago. For the year 2008, the tax rate was 38.1%, slightly lower than 39.2% in 2007.
CONFERENCE CALL
Management will host its quarterly conference call on January 27, 2009, at 11:00 a.m. PST (2:00 p.m. EST). Investment professionals are invited to participate in the call by dialing 1-888-680-0869 using passcode 57283952.
COMPANY INFORMATION
Headquartered in Los Angeles, Wilshire State Bank operates 20 branch offices in California, Texas, New Jersey and New York, and five loan production offices in Dallas, Houston, Atlanta, Denver, and Annandale, VA and is a SBA preferred lender nationwide. Wilshire State Bank is a community bank with a focus on commercial real estate lending and general commercial banking, with its primary market encompassing the multi-ethnic populations of the Los Angeles Metropolitan area. Wilshire Bancorp's strategic goals include increasing shareholder and franchise value by continuing to grow its multi-ethnic banking business and expanding its geographic reach to other similar markets with strong levels of small business activity.
FORWARD-LOOKING STATEMENTS
Statements concerning future performance, events, or any other guidance on future periods constitute forward-looking statements that are subject to a number of risks and uncertainties that might cause actual results to differ materially from stated expectations. Specific factors include, but are not limited to, loan production and sales, credit quality, the ability to expand net interest margin, the ability to continue to attract low-cost deposits, success of expansion efforts, competition in the marketplace and general economic conditions. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes included in Wilshire Bancorp's most recent reports on Form 10-K and Form 10-Q, as filed with the Securities and Exchange Commission, as they may be amended from time to time. Results of operations for the most recent quarter are not necessarily indicative of operating results for any future periods. Any projections in this release are based on limited information currently available to management and are subject to change. Since management will only provide guidance at certain points during the year, Wilshire Bancorp will not necessarily update the information. Such information speaks only as of the date of this release. Additional information on these and other factors that could affect financial results are included in filings by Wilshire Bancorp with the Securities and Exchange Commission.
CONSOLIDATED STATEMENT OF OPERATIONS
------------------------------------
(dollars in thousands, except per share data) (unaudited)
Quarter Quarter Three Quarter One
Ended Ended Month Ended Year
Dec. 31, Sept. 30, % Dec. 31, %
2008 2008 Change 2007 Change
---------- ---------- ------ --------- ------
INTEREST INCOME
Interest and fees on
Loans $ 33,615 $ 34,719 -3% $ 37,162 -10%
Interest on Securities 2,729 2,798 -2% 2,697 1%
Interest on Federal
funds sold 62 63 -1% 155 -60%
---------- ---------- ----------
Total Interest Income 36,406 37,580 -3% 40,014 -9%
---------- ---------- ----------
INTEREST EXPENSE
Deposits 11,841 12,469 -5% 16,397 -28%
FHLB and other
borrowings 3,436 3,697 -7% 3,093 11%
---------- ---------- ----------
Total Interest Expense 15,277 16,166 -6% 19,490 -22%
---------- ---------- ----------
Net Interest Income 21,129 21,414 -1% 20,524 3%
Provision for Losses on
Loans and Loan
Commitments 5,910 3,400 74% 4,750 24%
---------- ---------- ----------
Net Interest Income
After Provision for
Losses on Loan and
Loan Commitments 15,219 18,014 -16% 15,774 -4%
---------- ---------- ----------
NONINTEREST INCOME
Service charges on
Deposits 3,049 3,125 -2% 2,592 18%
Gain on Sales of Loans -- 410 -100% 1,774 -100%
Other 1,492 1,810 -18% 1,467 2%
---------- ---------- ----------
Total Noninterest
Income 4,541 5,345 -15% 5,833 -22%
---------- ---------- ----------
NONINTEREST EXPENSES
Salaries and Employee
Benefits 5,168 6,718 -23% 7,209 -28%
Occupancy & Equipment 1,636 1,576 4% 1,415 16%
Data Processing 790 785 1% 762 4%
Other 3,723 3,228 15% 3,297 13%
---------- ---------- ----------
Total Noninterest
Expenses 11,317 12,307 -8% 12,683 -11%
---------- ---------- ----------
Income Before Income
Taxes 8,443 11,052 -24% 8,924 -5%
Income Tax 3,317 4,184 -21% 3,425 -3%
---------- ---------- ----------
NET INCOME $ 5,126 $ 6,868 -25% $ 5,499 -7%
========== ========== ==========
Per Share Data
Basic Earnings Per
Share $ 0.17 $ 0.23 -25% $ 0.19 -7%
Diluted Earnings Per
Share $ 0.17 $ 0.23 -25% $ 0.19 -7%
Basic 29,409,061 29,397,182 29,291,262
Diluted 29,422,727 29,508,503 29,386,880
CONSOLIDATED STATEMENT OF OPERATIONS
(dollars in thousands, except per share data) (unaudited)
Twelve Twelve
Months Months One
Ended Ended Year
Dec. 31, Dec. 31, %
2008 2007 Change
---------- ---------- ------
INTEREST INCOME
Interest and fees on Loans $ 137,630 $ 144,740 -5%
Interest on Securities 10,749 9,975 8%
Interest on Federal funds sold 254 2,921 -91%
---------- ----------
Total Interest Income 148,633 157,636 -6%
---------- ----------
INTEREST EXPENSE
Deposits 51,912 68,766 -25%
FHLB and other borrowings 14,102 7,520 88%
---------- ----------
Total Interest Expense 66,014 76,286 -13%
---------- ----------
Net Interest Income 82,619 81,350 2%
Provision for Losses on Loans and Loan
Commitments 12,110 14,980 -19%
---------- ----------
Net Interest Income After Provision for
Losses on Loan and Loan Commitments 70,509 66,370 6%
---------- ----------
NONINTEREST INCOME
Service charges on Deposits 11,964 9,781 22%
Gain on Sales of Loans 2,186 7,502 -71%
Other 6,496 5,301 23%
---------- ----------
Total Noninterest Income 20,646 22,584 -9%
---------- ----------
NONINTEREST EXPENSES
Salaries and Employee Benefits 26,517 24,437 9%
Occupancy & Equipment 6,128 5,302 16%
Data Processing 3,111 3,089 1%
Other 12,644 12,011 5%
---------- ----------
Total Noninterest Expenses 48,400 44,839 8%
---------- ----------
Income Before Income Taxes 42,755 44,115 -3%
Income Tax 16,282 17,309 -6%
---------- ----------
NET INCOME $ 26,473 $ 26,806 -1%
========== ==========
Per Share Data
Basic Earnings Per Share $ 0.90 $ 0.91 -1%
Diluted Earnings Per Share $ 0.90 $ 0.91 -1%
Basic 29,368,762 29,339,454
Diluted 29,407,388 29,449,211
CONSOLIDATED BALANCE SHEET
--------------------------
(dollars in thousands, except share data) (unaudited)
Three Twelve
Dec. 31, Sept. 30, Month Dec. 31, Month
2008 2008 Change 2007 Change
---- ---- ------ ---- ------
ASSETS:
Cash and Due from
Banks $ 67,540 $ 54,017 25% $ 82,506 -18%
Federal Funds Sold
and Other Cash
Equivalents 30,001 3 862547% 10,003 200%
---------- ---------- ----------
Total Cash and Cash
Equivalents 97,541 54,020 81% 92,509 5%
---------- ---------- ----------
Securities Available
For Sale 229,136 227,957 1% 224,256 2%
Securities Held To
Maturity 139 143 -3% 7,384 -98%
---------- ---------- ----------
Total Securities 229,275 228,100 1% 231,640 -1%
---------- ---------- ----------
Loans
Real Estate
Construction 43,180 43,161 0% 59,443 -27%
Residential Real
Estate 77,846 73,913 5% 66,564 17%
Commercial Real
Estate 1,519,082 1,489,867 2% 1,319,422 15%
Commercial and
Industrial 387,752 405,726 -4% 330,052 17%
Consumer 23,669 21,661 9% 33,569 -29%
---------- ---------- ----------
Total Loans 2,051,529 2,034,328 1% 1,809,050 13%
Allowance For Loan
Losses (29,437) (25,950) 13% (21,579) 36%
---------- ---------- ----------
Loans Receivable,
Net of Allowance
for Loan Losses 2,022,092 2,008,378 1% 1,787,471 13%
---------- ---------- ----------
Accrued Interest
Receivable 9,975 10,168 -2% 10,062 -1%
Due from Customers
on Acceptances 2,213 2,896 -24% 3,377 -34%
Other Real Estate
Owned 2,663 1,453 83% 133 1896%
Premises and
Equipment 11,265 11,377 -1% 10,960 3%
Federal Home Loan
Bank (FHLB) Stock,
at Cost 17,537 15,245 15% 8,695 102%
Cash Surrender Value
of Life Insurance 17,395 17,200 1% 16,228 7%
Investment in
affordable housing
partnerships 9,019 8,538 6% 6,222 45%
Goodwill 6,675 6,675 0% 6,675 0%
Other intangible
assets 1,289 1,363 -5% 1,587 -19%
Other Assets 23,072 21,722 6% 21,146 9%
---------- ---------- ----------
TOTAL ASSETS $2,450,011 $2,387,135 3% $2,196,705 12%
========== ========== ==========
LIABILITIES AND
STOCKHOLDERS'
EQUITY:
LIABILITIES:
Non-interest Bearing
Demand Deposits $ 277,542 $ 295,451 -6% $ 314,114 -12%
Savings and Interest
Checking 65,923 63,927 3% 53,079 24%
Money Market
Deposits 362,719 448,038 -19% 464,280 -22%
Time Deposits in
denomination of
$100,000 or more 902,804 765,311 18% 788,883 14%
Other Time Deposits 203,613 215,036 -5% 142,715 43%
---------- ---------- ----------
Total Deposits 1,812,601 1,787,763 1% 1,763,071 3%
---------- ---------- ----------
Federal Home Loan
Bank borrowings and
Federal Funds
Purchased 274,000 300,000 -9% 150,000 83%
Acceptance
Outstanding 2,213 2,896 -24% 3,377 -34%
Subordinated
Debentures 87,321 87,321 0% 87,321 0%
Accrued Interest and
Other Liabilities 18,816 21,275 -12% 21,150 -11%
---------- ---------- ----------
Total Liabilities 2,194,951 2,199,255 0% 2,024,919 8%
---------- ---------- ----------
STOCKHOLDERS'
EQUITY:
Preferred stock -
$1,000 par value-
Authorized
5,000,000 shares,
Issued and
Outstanding 62,158,
0 and 0 Shares, at
December 31, 2008,
September 30, 2008,
and December 31,
2007, respectively 59,443 -- N/A -- N/A
Common Stock - No
Par Value-
Authorized
80,000,000 Shares,
Issued and
Outstanding
29,413,757,
29,401,757 and
29,253,311 Shares,
at December 31,
2008, September 30,
2008, December 31,
2007, respectively 55,300 52,256 6% 50,895 9%
Less Treasury Stock,
at Cost; 127,425,
127,425, and
127,425 Shares, at
December 31, 2008,
September 30, 2008,
December 31, 2007
respectively (1,262) (1,262) 0% (1,262) 0%
Retained Earnings 140,340 136,840 3% 121,778 15%
Accumulated Other
Comprehensive
Income, Net of
Taxes 1,239 46 2627% 375 231%
---------- ---------- ----------
Total Stockholders'
Equity 255,060 187,880 36% 171,786 48%
---------- ---------- ----------
TOTAL LIABILITIES
AND STOCKHOLDERS'
EQUITY $2,450,011 $2,387,135 3% $2,196,705 12%
========== ========== ==========
SUMMARY OF FINANCIAL DATA (dollars in thousands, except per share
------------------------- data) (unaudited)
AVERAGE BALANCES Quarter Quarter Quarter
---------------- Ended Ended Ended
Dec. 31, Sept. 30, Dec. 31,
2008 2008 2007
---------- ---------- ----------
Average Assets $2,426,075 $2,381,999 $2,132,176
Average Equity $ 205,462 $ 186,332 $ 172,355
Average Net Loans
(includes LHFS) $2,010,671 $1,979,435 $1,753,771
Average Deposits $1,770,237 $1,774,451 $1,716,748
Average Time
Deposits in
denomination of
$100,000 or more $ 834,971 $ 770,812 $ 738,770
Average Interest
Earning Assets $2,263,477 $2,219,745 $1,979,552
Twelve Months Twelve Months
Ended Ended
Dec. 31, Dec. 31,
2008 2007
---------- ----------
Average Assets $2,331,029 $2,049,334
Average Equity $ 187,240 $ 164,137
Average Net Loans
(includes LHFS) $1,933,048 $1,649,130
Average Deposits $1,744,069 $1,736,167
Average Time
Deposits in
denomination of
$100,000 or more $ 797,404 $ 776,697
Average Interest
Earning Assets $2,173,791 $1,902,130
PROFITABILITY Quarter Quarter Quarter
------------- Ended Ended Ended
Dec. 31, Sept. 30, Dec. 31,
2008 2008 2007
---------- ---------- ----------
Annualized Return
on Average Assets 0.85% 1.15% 1.03%
Annualized Return
on Average Equity 9.98% 14.74% 12.76%
Efficiency Ratio 44.08% 45.99% 48.12%
Annualized
Operating
Expense/Average
Assets 1.87% 2.07% 2.38%
Annualized Net
Interest Margin 3.73% 3.86% 4.15%
Twelve Months Twelve Months
Ended Ended
Dec. 31, Dec. 31,
2008 2007
---------- ----------
Annualized Return
on Average Assets 1.14% 1.31%
Annualized Return
on Average Equity 14.14% 16.33%
Efficiency Ratio 46.87% 43.14%
Annualized
Operating
Expense/Average
Assets 2.08% 2.19%
Annualized Net
Interest Margin 3.80% 4.28%
SUMMARY OF FINANCIAL DATA (dollars in thousands, except per share
------------------------- data) (unaudited)
DEPOSIT Quarter Cost Quarter Cost Quarter Cost
COMPOSITION Ended of Ended of Ended of
------------------ Dec. 31, Fund Sept. 30, Fund Dec. 31, Fund
2008 2008 2007
--------- ---- --------- ---- --------- ----
Noninterest Bearing
Demand Deposits 15.3% 0.00% 16.5% 0.00% 17.8% 0.00%
Savings & Interest
Checking 3.6% 2.89% 3.6% 2.77% 3.0% 2.29%
Money Market
Deposits 20.0% 3.06% 25.1% 3.21% 26.3% 4.43%
Time Deposits of
$100,000 or More 49.8% 3.17% 42.8% 3.48% 44.8% 5.00%
Other Time Deposits 11.3% 3.54% 12.0% 3.69% 8.1% 4.65%
--------- --------- ---------
Total Deposits 100.0% 2.68% 100.0% 2.81% 100.0% 3.82%
CAPITAL RATIOS Quarter Quarter Quarter
-------------- Ended Ended Ended
Dec. 31, Sept. 30, Dec. 31,
2008 2008 2007
--------- --------- ---------
Tier 1 Leverage
Ratio 10.37% 10.19% 10.36%
Tier 1 Risk-Based
Capital Ratio 12.02% 11.68% 11.83%
Total Risk-Based
Capital Ratio 17.09% 14.01% 14.58%
Total Shareholders'
Equity $ 255,060 $ 187,879 $ 171,786
Book Value Per
Share $ 8.67 $ 6.39 $ 5.87
Tangible Book
Value Per Share $ 8.36 $ 6.12 $ 5.58
ALLOWANCE FOR Quarter Quarter Quarter
LOAN LOSSES Ended Ended Ended
-------------
(net of SBA Dec. 31, Sept. 30, Dec. 31,
guaranteed 2008 2008 2007
portion) --------- --------- ---------
Balance at
Beginning of
Period $ 25,950 $ 23,494 $ 20,902
Provision for
Losses on Loans 5,902 3,795 4,817
Recoveries on
loans previously
charged off 191 174 116
Less Charge Offs (2,606) (1,513) (4,256)
--------- --------- ---------
Balance at End of
Period $ 29,437 $ 25,950 $ 21,579
========= ========= =========
Net Loan Charge-
offs/Average
Total Loans 0.12% 0.07% 0.23%
Charge-offs/
Average Total
Loans 0.13% 0.08% 0.24%
Allowance for Loan
Losses/Gross
Loans 1.43% 1.28% 1.19%
Allowance for Loan
Losses/Non-
accrual Loans 191.90% 196.10% 209.63%
Allowance for Loan
Losses/Non-
performing Loans 189.27% 189.01% 203.55%
Allowance for Loan
Losses/Total
Assets 1.20% 1.09% 0.98%
Allowance for Loan
Losses/Non-
performing Assets 161.61% 170.73% 200.08%
Twelve Months Twelve Months
Ended Ended
Dec. 31, Dec. 31,
2008 2007
--------- ---------
Balance at
Beginning of
Period $ 21,579 $ 18,654
Provision for
Losses on Loans 12,865 13,873
Recoveries on
loans previously
charged off 2,140 323
Less Charge Offs (7,147) (11,271)
--------- ---------
Balance at End of
Period $ 29,437 $ 21,579
========= =========
SUMMARY OF FINANCIAL DATA (dollars in thousands, except per share
------------------------- data) (unaudited)
ALLOWANCE FOR OFF- Quarter Quarter Quarter
BALANCE SHEET ITEMS Ended Ended Ended
------------------- Dec. 31, Sept. 30, Dec. 31,
(net of SBA 2008 2008 2007
guaranteed --------- --------- ---------
portion)
Balance at Beginning
of Period $ 1,235 $ 1,630 $ 2,065
(Recapture of)
Provision for
Losses on Off-
balance Sheet]
Items 8 (395) (67)
--------- --------- ---------
Balance at End of
Period $ 1,243 $ 1,235 $ 1,998
========= ========= =========
Twelve Months Twelve Months
Ended Ended
Dec. 31, Dec. 31,
2008 2007
--------- ---------
Balance at Beginning
of Period $ 1,998 $ 891
(Recapture of)
Provision for
Losses on Off-
balance Sheet
Items (755) 1,107
--------- ---------
Balance at End of
Period $ 1,243 $ 1,998
========= =========
NON-PERFORMING
ASSETS
-------------- Quarter Quarter Quarter
(net of SBA Ended Ended Ended
guaranteed Dec. 31, Sept. 30, Dec. 31,
portion) 2008 2008 2007
Nonaccrual Loans:
Construction $ -- $ -- $ --
Real Estate
Secured 9,334 9,506 8,154
Commercial and
Industrial 5,874 3,593 1,986
Consumer 131 134 154
--------- --------- ---------
Total 15,339 13,233 10,294
Loans 90 days or
more past due and
still accruing:
Construction -- -- --
Real Estate
Secured -- 490 117
Commercial and
Industrial 213 4 4
Consumer -- 2 187
--------- --------- ---------
Total 213 496 308
Total
Nonperforming
Loans $ 15,552 $ 13,729 $ 10,602
--------- --------- ---------
Total Nonperforming
Loans/Gross Loans 0.76% 0.67% 0.59%
OREO and
Repossessed
Vehicles 2,663 1,471 183
--------- --------- ---------
Total
Nonperforming
Assets, net of
SBA Guarantee $ 18,215 $ 15,200 $ 10,785
========= ========= =========
Total Nonperforming
Assets/Total
Assets 0.74% 0.64% 0.49%
LOAN ORIGINATION Quarter Quarter Quarter
AMOUNT Ended Ended Ended
---------------- Dec. 31, Sept. 30, Dec. 31,
2008 2008 2007
--------- --------- ---------
Total new loan
origination amount,
excluding renewal.$ 72,412 $ 98,999 $ 191,179
SBA new loan
origination amount,
excluding renewal.$ 9,190 $ 10,218 $ 18,682
Twelve Months Twelve Months
Ended Ended
Dec. 31, Dec. 31,
2008 2007
--------- ---------
Total new loan
origination amount,
excluding renewal.$ 518,089 $ 944,419
SBA new loan
origination amount,
excluding renewal.$ 63,329 $ 139,463
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(dollars in thousands) (unaudited)
For the Three Months Ended
--------------------------------------------------------
December 31, 2008 September 30, 2008
--------------------------------------------------------
Average Interest Average Average Interest Average
Balance Income/ Yield/ Balance Income/ Yield/
Expense Rate Expense Rate
INTEREST
EARNING
ASSETS
LOANS:
Real Estate
Loans $1,604,234 $ 26,980 6.73% $1,592,285 $ 27,661 6.95%
Commercial
Loans 412,842 5,449 5.28% 392,485 5,787 5.90%
Consumer
Loans 24,665 370 6.00% 23,540 375 6.37%
------------------- ----- ------------------- -----
Total Loans
- Gross 2,041,741 32,799 6.43% 2,008,310 33,823 6.74%
Loan Fees
toward Yield 816 896
Allowance for
Loan Losses
& Unearned
income (31,070) (28,875)
------------------- ----- ------------------- -----
Net Loans 2,010,671 33,615 6.69% 1,979,435 34,719 7.02%
------------------- ----- ------------------- -----
INVESTMENT
SECURITIES
AND OTHER
INTEREST-
EARNING
ASSETS:
Investment
Securities 229,730 2,729 4.75% 228,825 2,798 4.89%
Federal Funds
Sold 23,076 62 1.07% 11,485 63 2.19%
------------------- ----- ------------------- -----
Total
Investment
Securities
and Other
Earning
Assets 252,806 2,791 4.42% 240,310 2,861 4.76%
------------------- ----- ------------------- -----
TOTAL
INTEREST-
EARNING
ASSETS $2,263,477 $ 36,406 6.43% $2,219,745 $ 37,580 6.77%
=================== ===== =================== =====
INTEREST
BEARING
LIABILITIES
INTEREST-
BEARING
DEPOSITS:
Money Market $ 380,275 $ 2,905 3.06% $ 439,080 $ 3,520 3.21%
NOW 18,989 58 1.23% 21,144 72 1.36%
Savings 43,029 390 3.63% 41,273 359 3.48%
Time Deposits
of $100,000
or More 834,971 6,618 3.17% 770,812 6,702 3.48%
Other Time
Deposits 211,351 1,870 3.54% 197,044 1,816 3.69%
------------------- ----- ------------------- -----
Total
Interest
Bearing
Deposits 1,488,615 11,841 3.18% 1,469,353 12,469 3.39%
------------------- ----- ------------------- -----
BORROWINGS:
FHLB Advances
and Other
Borrowings 340,424 2,318 2.72% 309,576 2,570 3.32%
Junior
Subordinated
Debentures 87,321 1,118 5.12% 87,321 1,127 5.16%
------------------- ----- ------------------- -----
Total
Borrowings 427,745 3,436 3.21% 396,897 3,697 3.73%
------------------- ----- ------------------- -----
TOTAL INTEREST
BEARING
LIABILITIES $1,916,360 $ 15,277 3.19% $1,866,250 $ 16,166 3.46%
=================== ===== =================== =====
NET INTEREST
INCOME $ 21,129 $ 21,414
======== ========
NET INTEREST
SPREAD 3.24% 3.31%
===== =====
NET INTEREST
MARGIN 3.73% 3.86%
===== =====
For the Three Months Ended
---------------------------
December 31, 2007
---------------------------
Average Interest Average
Balance Income/ Yield/
Expense Rate
INTEREST EARNING ASSETS
LOANS:
Real Estate Loans $1,425,877 $ 28,478 7.99%
Commercial Loans 320,417 6,628 8.27%
Consumer Loans 35,113 660 7.52%
------------------- -----
Total Loans - Gross 1,781,407 35,766 8.03%
Loan Fees toward Yield 1,396
Allowance for Loan Losses & Unearned
income (27,636)
------------------- -----
Net Loans 1,753,771 37,162 8.48%
------------------- -----
INVESTMENT SECURITIES AND
OTHER INTEREST-EARNING ASSETS:
Investment Securities 213,784 2,697 5.05%
Federal Funds Sold 11,997 155 5.47%
------------------- -----
Total Investment Securities and Other
Earning Assets 225,781 2,852 5.05%
------------------- -----
TOTAL INTEREST-EARNING ASSETS $1,979,552 $ 40,014 8.09%
=================== =====
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money Market $ 478,153 $ 5,294 4.43%
NOW 24,613 102 1.65%
Savings 31,144 218 2.80%
Time Deposits of $100,000 or More 738,770 9,232 5.00%
Other Time Deposits 133,567 1,551 4.65%
------------------- -----
Total Interest Bearing Deposits 1,406,247 16,397 4.66%
------------------- -----
BORROWINGS:
FHLB Advances and Other Borrowings 130,880 1,469 4.49%
Junior Subordinated Debentures 87,321 1,624 7.44%
------------------- -----
Total Borrowings 218,201 3,093 5.67%
------------------- -----
TOTAL INTEREST BEARING LIABILITIES $1,624,448 $ 19,490 4.80%
=================== =====
NET INTEREST INCOME $ 20,524
========
NET INTEREST SPREAD 3.29%
=====
NET INTEREST MARGIN 4.15%
=====
For the Twelve Months Ended
--------------------------------------------------------
December 31, 2008 December 31, 2007
--------------------------------------------------------
Average Interest Average Average Interest Average
Balance Income/ Yield/ Balance Income/ Yield/
Expense Rate Expense Rate
INTEREST
EARNING
ASSETS
LOANS:
Real Estate
Loans 1,558,723 109,166 7.00% 1,323,926 107,794 8.14%
Commercial
Loans 377,090 22,607 6.00% 309,228 26,931 8.71%
Consumer
Loans 26,102 1,702 6.52% 43,059 3,378 7.84%
------------------- ----- ------------------- -----
Total Loans
- Gross 1,961,915 133,475 6.80% 1,676,213 138,103 8.24%
Loan Fees
toward Yield 4,155 6,637
Allowance for
Loan Losses
& Unearned
income (28,867) (27,082)
------------------- ----- ------------------- -----
Gross Loans,
Net 1,933,048 137,630 7.12% 1,649,131 144,740 8.78%
------------------- ----- ------------------- -----
INVESTMENT
SECURITIES
AND OTHER
INTEREST-
EARNING
ASSETS:
Investment
Securities 227,481 10,749 4.73% 198,973 9,975 5.01%
Federal Funds
Sold 13,262 254 1.91% 54,026 2,921 5.41%
------------------- ----- ------------------- -----
Total
Investment
Securities
and Other
Earning
Assets 240,743 11,003 4.57% 252,999 12,896 5.10%
=================== ===== =================== =====
TOTAL
INTEREST-
EARNING
ASSETS 2,173,791 148,633 6.84% 1,902,130 157,636 8.29%
=================== ===== =================== =====
INTEREST
BEARING
LIABILITIES
INTEREST-
BEARING
DEPOSITS:
Money Market 402,323 13,147 3.27% 445,130 20,090 4.51%
NOW 21,290 286 1.34% 22,511 297 1.32%
Savings 38,250 1,297 3.39% 29,816 710 2.38%
Time Deposits
of $100,000
or More 797,404 29,840 3.74% 776,697 40,516 5.22%
Other Time
Deposits 186,639 7,342 3.93% 146,837 7,153 4.87%
------------------- ----- ------------------- -----
Total
Interest-
Bearing
Deposits 1,445,906 51,912 3.59% 1,420,991 68,766 4.84%
------------------- ----- ------------------- -----
BORROWINGS:
FHLB Advances
and Other
Borrowings 287,566 9,287 3.23% 49,408 2,067 4.18%
Junior
Subordinated
Debentures 87,321 4,815 5.51% 73,904 5,453 7.38%
------------------- ----- ------------------- -----
Total
Borrowings 374,887 14,102 3.76% 123,312 7,520 6.10%
------------------- ----- ------------------- -----
TOTAL INTEREST
BEARING
LIABILITIES 1,820,793 66,014 3.63% 1,544,303 76,286 4.94%
=================== ===== =================== =====
NET INTEREST
INCOME 82,619 81,350
======== ========
NET INTEREST
SPREAD 3.21% 3.35%
===== =====
NET INTEREST
MARGIN 3.80% 4.28%
===== =====