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:
- Net income available to common shareholders of $10.2
million, or $0.14 per share
- 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
- Overall reduction in inflows into all major credit
categories
- Annualized quarter to date return on average assets of
1.65%
- 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 |
|
|
|
|
|
|
CONTACT: Alex Ko, EVP & CFO
(213) 427-6560
www.wilshirebank.com
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