fung_derf
8 years ago
No one has anything to say about this?
LOS ANGELES, July 29, 2016 (GLOBE NEWSWIRE) -- BBCN Bancorp, Inc. (NASDAQ:BBCN) and Wilshire Bancorp, Inc. (NASDAQ:WIBC) today announced the completion of their merger of equals that will take effect as of the close of business today. The transformational combination creates the only super regional Korean-American bank in the United States, with total assets of approximately $13.2 billion, gross loans of approximately $10.4 billion and total deposits of approximately $10.6 billion.
As previously announced, the combined entity will operate under the new name of "Hope Bancorp, Inc." at the holding company level, and the combined bank operations of the wholly owned subsidiaries will operate under the new banner of "Bank of Hope." It is expected that Hope Bancorp will start trading under the new stock ticker symbol, "HOPE," effective as of market open on Monday, August 1, 2016.
"We are extremely excited to complete this transformational merger and embark on our new journey as the representative enterprise of the Korean-American banking industry," said Kevin S. Kim President and Chief Executive Officer of Hope Bancorp and Bank of Hope. "We believe our new name and flag-like logo instill a sense of pride and optimism for the future. The bars, which form a hidden 'H,' symbolize the relationships between Bank of Hope and all of its constituents and exemplify elevated steps and forward progress. The colors of our logo include a mix of blues to personify the strength of our Bank, greens to embody growth, and yellows to symbolize opportunities in Hope. The gradient colors built with blue-green, green and yellow-green are unique to us. We call this expression of color 'Hope Green.' Bank of Hope will serve as a cornerstone for Korean-American communities across the United States, and we look forward to introducing our new brand to our customers, communities and shareholders."
"Bank of Hope is an unrivaled organization with the only nationwide platform providing full banking services in all of the top major geographic markets with sizeable Korean-American communities in the United States," said Steven S. Koh, Chairman of the Board of Hope Bancorp and Bank of Hope. "Coupled with a comprehensive offering of products and services for our customer base, we are confident that Bank of Hope is well positioned to deliver long-term benefits for all of our stakeholders, including our customers, our employees, our communities and our shareholder base."
Pursuant to the merger agreement, Wilshire Bancorp shareholders have the right to receive 0.7034 shares of Hope Bancorp for each share of Wilshire Bancorp common stock they own.
The former BBCN Bancorp was advised by the investment banking firm of Keefe, Bruyette, & Woods, Inc., a Stifel Company, as well as the law firm of Morrison & Foerster LLP. The former Wilshire Bancorp was advised by the investment banking firm of Sandler O'Neill + Partners, L.P. and the law firm of Hunton & Williams LLP. Landor provided strategic brand consulting and design services for the development of the new Hope Bancorp and Bank of Hope brand, complete with visual identity and tagline.
About Hope Bancorp, Inc.
Hope Bancorp, Inc. is the holding company of Bank of Hope, the first and only super regional Korean-American bank in the United States with more than $13 billion in total assets as of July 30, 2016. Formed through the merger of BBCN Bank and Wilshire Bank, the top two commercial lenders in the market, Bank of Hope is headquartered in Los Angeles and serves a multi-ethnic population of customers across the nation. Bank of Hope operates 85 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Georgia and Alabama. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Northern California, Annandale, Virginia, Portland, Oregon and Fremont, California; residential mortgage loan production offices in California; and a representative office in Seoul, Korea. Bank of Hope specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and commercial lending, SBA lending and international trade financing. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to bankofhope.com.
Forward-Looking Statements
This press release may contain forward-looking statements. These statements are based on current expectations, estimates, forecasts and projections and management assumptions about the future performance of the combined company, as well as the businesses and markets in which the combined company operates and is expected to operate. These statements constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, involve certain risks, uncertainties and assumptions that are difficult to assess and are not guarantees of future performance and. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Readers should carefully review the risk factors and the information that could materially affect the Company's financial results and business, described in documents the Company files from time to time with the Securities and Exchange Commission, including its quarterly reports on Form 10-Q and Annual Reports on Form 10-K, and particularly the discussions of business considerations and certain factors that may affect results of operations and stock price set forth therein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements.
Contact:
Angie Yang
SVP, Director of Investor Relations &
Corporate Communications
213-251-2219
angie.yang@bankofhope.com
56Chevy
11 years ago
Wilshire Bancorp Reports Net Income of $13.1 Million or $0.17 per Share for First Quarter 2014
Date : 04/21/2014 @ 4:05PM
Source : GlobeNewswire Inc.
Stock : Wilshire Bancorp, Inc. (MM) (WIBC)
Quote : $10.66 0.1 (0.95%) @ 5:20PM
Wilshire Bancorp, Inc. (Nasdaq:WIBC) (the "Company"), the holding company for Wilshire Bank (the "Bank"), today reported net income available to common shareholders of $13.1 million, or $0.17 per diluted common share, for the quarter ended March 31, 2014. This compares to net income available to common shareholders of $11.6 million, or $0.16 per diluted common share, for the same period of the prior year, and net income available to common shareholders of $10.9 million, or $0.15 per diluted common share, for the fourth quarter of 2013. Financial results for the first quarter of 2014 include $3.4 million in merger-related expenses attributable to the acquisition and integration of BankAsiana and Saehan Bancorp.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "We are seeing a strong increase in our core earnings power as a result of the acquisitions of BankAsiana and Saehan Bancorp late in 2013. Compared to the first quarter of 2013, our total revenue increased 34%, and our pre-tax, pre-provision income increased by 17%. We are also seeing an improvement in our deposit mix resulting from our focus on developing more core deposit relationships. Our non-interest bearing deposits now represent the largest component of our total deposits, which has resulted in a decline in our cost of funds. We are pleased that the increase in our core earnings power and strong financial position has enabled us to increase the amount of capital we can return to our shareholders, with a 67% increase in our quarterly dividend."
Q1 2014 Summary
•Net income available to common shareholders totaled $13.1 million, or $0.17 per diluted common share, for the first quarter of 2014
•Total revenue of $50.3 million, an increase of 34% from the first quarter of 2013
•Return on average assets of 1.44% and return on average equity of 11.73% for the first quarter of 2014
•Loans receivable (net of deferred fees and costs) totaled $2.87 billion at March 31, 2014, an increase of 40% from $2.05 billion at March 31, 2013
•Total deposits were $2.92 billion at March 31, 2014, an increase of 35% from $2.16 billion at March 31, 2013
•Continued low credit losses and stable trends in assets quality resulted in no provision for losses on loans and loan commitments for Q1 2014
•Quarterly cash dividend payable on April 15, 2014 increased to $0.05 per common share
[....]
Book Value Per Common Share: $5.77
http://ih.advfn.com/p.php?pid=nmona&article=61904473
*A 3 year chart tells the story on this blue ribbon bank. Since Enterprising Investor called a market bottom in Oct of 2011 the bank has been going up ever since. Great call EI.
Marker:
Wilshire Bancorp, In (WIBC)
$10.66 up 0.1 (0.95%)
Volume: 317,423
Enterprising Investor
11 years ago
Wilshire Bancorp Reports Net Income of $11.3 Million or $0.16 Per Share for Third Quarter 2013 (10/21/13)
LOS ANGELES, Oct. 21, 2013 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq:WIBC) (the "Company"), the holding company for Wilshire Bank, formerly Wilshire State Bank (the "Bank"), today reported net income available to common shareholders of $11.3 million, or $0.16 per diluted common share, for the quarter ended September 30, 2013. This compares to net income available to common shareholders of $38.5 million, or $0.54 per common share, for the same period of the prior year, and net income available to common shareholders of $11.5 million, or $0.16 per common share, for the second quarter of 2013.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "We are pleased with our third quarter performance, which was driven by solid revenue growth, enhanced efficiencies and continued improvement in our credit quality. We saw a significant pick-up in our commercial real estate lending during the third quarter, which helped increase our loan portfolio by nearly 5% from the end of the prior quarter. We continue to enhance our ability to generate new customer relationships, most notably through the creation of a New Business Marketing Group led by our new Chief Marketing Officer, which will focus on increasing penetration in our primary markets.
"We are seeing strong improvement in our core earnings power, with our pre-tax, pre-provision income increasing 20% on a year-over-year basis. With the acquisition of BankAsiana, which closed earlier this month, and our pending acquisition of Saehan Bancorp, we believe we have additional catalysts in place that should enable us to continue improving our core earnings power in the years ahead and creating significant value for shareholders," said Mr. Yoo.
Q3 2013 Summary
Net income available to common shareholders totaled $11.3 million or $0.16 per diluted common share
Total revenue of $34.5 million, an increase of 7.2% from the third quarter of 2012
Return on average assets of 1.62%; return on average equity of 12.61%
Operating efficiency ratio of 51.7% for Q3 2013 compared to 57.0% for Q3 2012
Loans receivable totaled $2.20 billion at September 30, 2013, an increase of 4.9% from $2.09 billion at June 30, 2013
Total deposits were $2.25 billion at September 30, 2013, an increase of 3.3% from $2.18 billion at June 30, 2013
Continued improvement in credit quality resulted in no provision for losses on loans and loan commitments for Q3 2013
STATEMENT OF OPERATIONS
Pre-Tax, Pre-Provision Income
Pre-tax, pre-provision income (PTPP) was $16.7 million for the third quarter of 2013, compared with $13.9 million for the third quarter of 2012, and $17.0 million for the second quarter of 2013. PTPP is a Non-GAAP measure of financial performance. Please refer to the "Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures" table at the end of this press release for a reconciliation of PTPP to net income and important information about Non-GAAP measures of financial performance.
Net Interest Income and Margin
Net interest income before credit for losses on loans and loan commitments totaled $26.7 million for the third quarter of 2013, an increase of 4.3% from $25.6 million for the third quarter of 2012, and an increase of 3.7% from $25.8 million in the second quarter of 2013. The increase from prior quarter is largely attributable to large recovery of interest income from loans that were put back on accrual status.
Net interest margin was 4.17% for the third quarter of 2013, compared to 4.35% in the third quarter of 2012, and 4.06% for the second quarter of 2013. The increase in net interest margin from the second quarter of 2013 was also due to the recovery of interest income that was previously reversed out due to certain loans being put on non-accrual status. As credit quality in these loans improved, the loans were put back on accrual status and the previously reversed interest income was recognized during the third quarter of 2013.
Loan yields increased to 5.18% for the third quarter of 2013 from 5.10% for the second quarter of 2013, largely due the recovery of $1.1 million in foregone interest related to loans that were upgraded from non-accrual to accrual status during the third quarter of 2013.
The total cost of deposits was 0.53% for the third quarter of 2013, compared with 0.51% for the second quarter of 2013. The increase in the total cost of deposits is primarily attributable to an increase in the cost of time deposits.
Non-Interest Income
Total non-interest income was $7.8 million for the third quarter of 2013, compared to $6.6 million for the third quarter of 2012, and $8.3 million for the second quarter of 2013. The decrease from the prior quarter was primarily due to lower net gain on sales of loans during the third quarter of 2013 as the premiums for Small Business Administration ("SBA") loan sales continued to decline during the third quarter of 2013.
The $2.8 million in net gains on sales of loans recognized in the third quarter of 2013 was substantially all gains from the sale of SBA loans. During the third quarter of 2013, the Company sold $30.2 million in SBA loans, compared with $30.6 million sold during the second quarter of 2013.
Non-Interest Expense
Total non-interest expense was $17.8 million for the third quarter of 2013, compared with $18.3 million for the third quarter of 2012, and $17.1 million for the second quarter of 2013.
Total salaries and employee benefits expense was $8.8 million for the third quarter of 2013, compared with $9.4 million for the third quarter of 2012, and $9.5 million for the second quarter of 2013. The decrease from the prior quarter was primarily due to lower bonus accruals.
Other non-interest expense for the third quarter of 2013 totaled $6.3 million, compared with $4.4 million in the third quarter of 2012, and $4.9 million for the second quarter of 2013. The increase from the prior periods was primarily attributable to higher professional fees related to acquisition activity.
The Company's operating efficiency ratio was 51.7% for the third quarter of 2013, compared with 57.0% for the third quarter of 2012 and 50.1% for the second quarter of 2013.
Tax Provision
For the third quarter of 2013, the Company recorded a provision for income taxes totaling $5.4 million, reflecting an effective tax rate of 32.1%. The effective tax rate is lower than historical rates primarily due to the generation of tax credits associated with the Company's investment in affordable housing programs.
BALANCE SHEET
Total gross loans receivable, were $2.20 billion at September 30, 2013, compared to $2.09 billion at June 30, 2013. The increase in total gross loans receivable during the third quarter of 2013 was primarily due to a $103.5 million increase in the real estate secured portfolio.
http://www1.snl.com/irweblinkx/file.aspx?IID=4092278&FID=20255346
Enterprising Investor
11 years ago
Wilshire Bancorp Reports Net Income of $11.5 Million or $0.16 Earnings Per Share for Second Quarter 2013 (7/22/13)
LOS ANGELES, July 22, 2013 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq:WIBC) (the "Company"), the holding company for Wilshire State Bank (the "Bank"), today reported net income available to common shareholders of $11.5 million, or $0.16 per diluted common share, for the quarter ended June 30, 2013. This compares to net income available to common shareholders of $22.1 million, or $0.31 per common share, for the same period of the prior year, and net income of $11.6 million, or $0.16 per common share, for the first quarter of 2013.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "We delivered another strong performance in the second quarter that reflects the consistent earnings power of the Company. We generated an annualized return on assets of 1.67% and an annualized return on equity of 13.0%. In addition, pre-tax, pre-provision income for the second quarter of 2013 was $17.0 million, a 38% increase from $12.4 million for the second quarter of 2012. We saw a continuation of most of the trends we have experienced over the past several quarters, most notably low credit costs, slight compression in our net interest margin, stable expense levels and modest loan growth.
"As we indicated at the beginning of 2013, one of our top priorities was to be more active in our deployment of excess capital to create additional value for our shareholders. Our actions in the second quarter of 2013 reflect our efforts to achieve this goal. We returned cash to shareholders through the implementation of a stock repurchase program and also reinstated our quarterly cash dividend. In addition, we announced two acquisitions - BankAsiana in the New York/New Jersey market and Saehan Bancorp in the Los Angeles market - that will expand our franchise and increase our earnings power in the years ahead. Following these actions, we expect to continue to be well capitalized and have the flexibility to continue returning capital to shareholders and reinvesting in our business," said Mr. Yoo.
Q2 2013 Summary
•Net income available to common shareholders totaled $11.5 million or $0.16 per diluted common share
•Total revenue of $34.1 million, an increase of 4.0% from the second quarter of 2012
•Return on average assets of 1.67%; return on average equity of 12.95%
•Operating efficiency ratio of 50.1% for Q2 2013 compared to 50.5% for Q1 2013
•Loans receivable totaled $2.09 billion at June 30, 2013, an increase of 2.1% from $2.05 billion at March 31, 2013
•Continued improvement in credit quality resulted in no provision for losses on loans and loan commitments for Q2 2013
•Declared cash dividend of $0.03 per common share
•Repurchased 651,412 shares of common stock as part of the Company's stock repurchase program
•Announced acquisitions of BankAsiana in New Jersey and Saehan Bancorp in Los Angeles
STATEMENT OF OPERATIONS
Pre-Tax, Pre-Provision Income
Pre-tax, pre-provision income (PTPP) was $17.0 million for the second quarter of 2013, compared with $12.4 million in the second quarter of 2012, and $17.0 million in the first quarter of 2013. PTPP is a Non-GAAP measure of financial performance. Please refer to the "Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures" table at the end of this press release for a reconciliation of PTPP to net income.
Net Interest Income and Margin
Net interest income before credit for losses on loans and loan commitments totaled $25.8 million for the second quarter of 2013, an increase of 6.2% from $24.2 million for the second quarter of 2012, and increased from $25.6 million in the first quarter of 2013. The increase from the prior periods was primarily due to a reduction in interest expense on deposits.
Net interest margin was 4.06% for the second quarter of 2013, compared to 4.13% in the second quarter of 2012, and 4.09% for the first quarter of 2013. The decrease in net interest margin from the first quarter of 2013 was primarily due to lower yields on newly originated loans, partially offset by a reduction in the cost of deposits.
Loan yields decreased to 5.10% for the second quarter of 2013 from 5.21% for the first quarter of 2013 due to new loans that were originated at rates that were lower than that of the existing portfolio, as a result of the low interest rate environment and competitive landscape within the banking industry. The total cost of deposits declined to 0.51% for the second quarter of 2013, down from 0.53% for the first quarter of 2013. The reduction in the total cost of deposits is primarily attributable to an increase in non-interest bearing deposits as a percentage of total deposits.
Non-Interest Income
Total non-interest income was $8.3 million for the second quarter of 2013, compared to $8.5 million for the second quarter of 2012, and $8.7 million for the first quarter of 2013. The decrease from the prior quarter was primarily due to lower net gain on sales of loans during the second quarter of 2013.
The $3.1 million in net gains on sales of loans recognized in the second quarter of 2013 was substantially all gains from the sale of SBA loans. During the second quarter of 2013, the Company sold $30.6 million in SBA loans, an increase from $30.3 million during the first quarter of 2013.
Non-Interest Expense
Total non-interest expense was $17.1 million for the second quarter of 2013, compared with $20.4 million for the second quarter of 2012, and $17.3 million for the first quarter of 2013.
Total salaries and employee benefits expense was $9.5 million for the second quarter of 2013, compared with $9.0 million for the second quarter of 2012, and $8.8 million for the first quarter of 2013. The increase from the prior quarter was due to an increase in accrual for bonuses and company-wide salary increases that took effect in the second quarter of 2013.
Other non-interest expense for the second quarter of 2013 totaled $4.9 million, compared with $6.7 million in the second quarter of 2012, and $5.8 million for the first quarter of 2013. The decrease from the second quarter of 2012 was primarily attributable to a decline in legal fees and regulatory assessment fees. The decrease from the first quarter of 2013 was primarily attributable to a reduction in professional fees and expenses related to the Company's bank owned life insurance plan.
The Company's operating efficiency ratio was 50.1% for the second quarter of 2013, compared with 62.2% for the second quarter of 2012 and 50.5% for the first quarter of 2013.
Tax Provision
For the second quarter of 2013, the Company recorded a provision for income taxes totaling $5.5 million, reflecting an effective tax rate of 32.1%. The effective tax rate is lower than historical rates primarily due to the generation of tax credits associated with the Company's investment in affordable housing programs.
BALANCE SHEET
Total gross loans receivable, were $2.10 billion at June 30, 2013, compared to $2.06 billion at March 31, 2013. The increase in total gross loans receivable during the second quarter of 2013 was primarily due to a $23.4 million increase in the commercial and industrial portfolio and a $19.6 million increase in the real estate secured portfolio. Total cash and due from banks increased $75.7 million during the second quarter of 2013 to $162.6 million due to a large temporary increase of a customer's business demand deposit account balance, a reduction in warehouse lending, and pay-down of investment securities. During the second quarter of 2013, the Company committed to fund two additional low income tax credit investments totaling $8.0 million.
Read more: http://www.nasdaq.com/press-release/wilshire-bancorp-reports-net-income-of-115-million-or-016-earnings-per-share-for-second-quarter-2013-20130722-00949#ixzz2ZpwDKSMa
Enterprising Investor
11 years ago
Wilshire Bancorp Announces Acquisition of Saehan Bancorp (7/15/13)
Two Valuable Korean-American Franchises Combine to Create Significant Stakeholder Value
Acquisition of Saehan Bancorp to Add Nearly $550 Million in Assets to Wilshire Bancorp
LOS ANGELES, July 15, 2013 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq:WIBC), the parent company of Wilshire State Bank, and Saehan Bancorp (OTCQB:SAEB), the parent company of Saehan Bank, today jointly announced that Wilshire Bancorp has agreed to acquire Saehan Bancorp at the price of $0.42 per share which is valued at approximately $105.5 million, based on Wilshire's most recent closing price. The combined company will have approximately $3.5 billion in assets with 35 branches.
"Saehan Bank has been a respected competitor for years and we believe their operations will add significant value to the Wilshire State Bank franchise," said Jae Whan Yoo, President and Chief Executive Officer of Wilshire Bancorp and Wilshire State Bank. "Saehan Bank has a very loyal and attractive customer base that we believe will enjoy the expanded product and service offerings, greater lending limits, and increased convenience that Wilshire State Bank can offer. With significant overlap in our operations, we believe that we will have a high level of cost savings opportunities that will enhance the combined bank's earnings power. In addition, we think there are good opportunities to restructure Saehan Bank's balance sheet to enhance the amount of net interest income generated from their operations. As we indicated entering 2013, we were focused on deploying our excess capital in ways that will enhance shareholder value. With our pending acquisitions of BankAsiana in the New York/New Jersey market and Saehan Bancorp in Los Angeles, we believe we have prudently deployed excess capital to expand our franchise and increase our earnings power going forward."
"Wilshire Bancorp is a great fit for Saehan Bancorp, with a similar corporate culture and commitment to serving the Korean-American community in Los Angeles," said Dong Il Kim, President and Chief Executive Officer of Saehan Bancorp. "We appreciate the loyalty that our customers have shown to Saehan and we look forward to continuing to serve their financial needs as part of Wilshire Bancorp. We are pleased to find a partner that will reward our shareholders, while also having the ability to integrate our operations smoothly and ensure that our customers continue to receive a superior level of service."
The agreement was unanimously approved by the Board of Directors of each company. In addition, shareholders of Saehan Bancorp owning or controlling approximately 51% in the aggregate of the current outstanding shares of Saehan Bancorp have entered into voting and support agreements requiring them, subject to the terms and conditions thereof, to vote in favor of the merger. A two-thirds vote of the outstanding shares of Saehan common stock is necessary for shareholder approval of the merger.
Excluding transaction costs, the merger is expected to be immediately accretive to Wilshire Bancorp's earnings per share in the first year, with double digit accretion in subsequent years, and an internal rate of return in excess of 20%. Anticipated gross synergies are expected to be approximately $12.3 million, with 75% being realized in 2014 and 100% being realized thereafter. The transaction is expected to be completed by the end of this year, after the fulfillment of certain customary conditions to closing, including the approval of the shareholders of Saehan Bancorp and receipt of necessary regulatory approvals.
Under the terms of the merger agreement each Saehan Bancorp share will be converted to a right to receive, subject to allocation procedures and certain limitations, either (i) 0.06080 shares of Wilshire Bancorp common stock or (ii) $0.4247 in cash or (iii) a unit consisting of Wilshire Bancorp common stock and cash. Saehan Bancorp shareholders will receive a fixed amount of cash totaling approximately $50.4 million and a fixed amount of Wilshire Bancorp common stock totaling approximately 7.2 million shares. The actual value received by Saehan Bancorp shareholders on a per share basis for those receiving Wilshire common stock will fluctuate based on Wilshire Bancorp's stock price.
Wilshire was advised in this transaction by Macquarie Capital, as financial advisor, and Hunton & Williams LLP, as legal counsel. Saehan was advised by B. Riley & Co., as financial advisor, and King, Holmes, Paterno & Berliner, as legal counsel.
Additional Financial Information
• As of March 31, 2013, Saehan Bancorp had total assets of $542.3 million, total net loans of $365.4 million, and total deposits of $458.3 million.
• On a proforma basis, including the pending acquisitions of BankAsiana and Saehan Bancorp, as of March 31, 2013, Wilshire Bancorp would have approximately $3.5 billion in total assets, $2.7 billion in net loans, and $2.8 billion in total deposits
• An investor presentation for this transaction can be accessed on the websites for Wilshire Bancorp and Saehan Bancorp at www.wilshirebank.com and www.saehanbank.com, within the investor relations sections of each website.
ABOUT WILSHIRE BANCORP
Headquartered in Los Angeles, Wilshire State Bank operates 25 branch offices in California, Texas, New Jersey and New York, and eight loan production offices in Dallas and Houston, TX, Atlanta, GA, Aurora, CO, Annandale, VA, Fort Lee, NJ, Newark, CA, and Bellevue, WA, 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. For more information, please go to www.wilshirebank.com.
ABOUT SAEHAN BANCORP
Saehan Bancorp is a bank holding company with headquarters in Los Angeles, California. Its wholly owned subsidiary, Saehan Bank, offers a comprehensive range of financial solutions to meet the needs of multi-ethnic communities in the United States. Saehan Bancorp is committed to satisfying customers and creating shareholder value. Its ten retail branch offices, International Department and SBA Department focus on fulfilling these commitments to customers and shareholders.
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. Such forward-looking statements include, but are not limited to, statements about the benefits of the proposed transaction involving Wilshire and Saehan including future financial and operating results, Wilshire's or Saehan's plans, objectives, expectations and intentions, the expected timing of completion of the transaction, and other statements that are not historical facts. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include risks and uncertainties relating to: (i) the ability to obtain the requisite Saehan shareholder approvals; (ii) the risk that Wilshire or Saehan may be unable to obtain governmental and regulatory approvals required for the transaction, or required governmental and regulatory approvals may delay the transaction or result in the imposition of conditions that could cause the parties to abandon the transaction; (iii) the risk that a condition to closing of the transaction may not be satisfied; (iv) the timing to consummate the proposed transaction; (v) the risk that the businesses will not be integrated successfully; (vi) the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; (vii) disruption from the transaction making it more difficult to maintain relationships with customers, employees or vendors; (viii) the diversion of management time on transaction-related issues; (ix) general worldwide economic conditions and related uncertainties; (x) the effect of changes in governmental regulations; (xi) credit risk associated with an obligor's failure to meet the terms of any contract with the bank or to otherwise perform as agreed; (xii) interest risk involving the effect of a change in interest rates on both the bank's earnings and the market value of the portfolio equity; (xiii) liquidity risk affecting the bank's ability to meet its obligations when they come due; (xiv) price risk focusing on changes in market factors that may affect the value of traded instruments in "mark-to-market" portfolios; (xv) transaction risk arising from problems with service or product delivery; (xvi) compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards; (xvii) strategic risk resulting from adverse business decisions or improper implementation of business decisions; (xviii) reputation risk that adversely affects earnings or capital arising from negative public opinion; (xix) terrorist activities risk that results in loss of consumer confidence and economic disruptions; (xx) economic downturn risk resulting in deterioration in the credit markets; (xxi) greater than expected noninterest expenses; (xxii) excessive loan losses; and (xxiii) other factors we discuss or refer to in the "Risk Factors" section of our most recent Annual Report on Form 10-K filed with the SEC. Additional risks and uncertainties are identified and discussed in Wilshire's reports filed with the SEC and available at the SEC's website at www.sec.gov. Each forward-looking statement speaks only as of the date of the particular statement and Wilshire undertakes no obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
ADDITIONAL INFORMATION ABOUT THE PROPOSED MERGER AND WHERE TO FIND IT
This communication relates to a proposed merger between Wilshire and Saehan that will become the subject of a registration statement, which will include a proxy statement/prospectus, to be filed with the SEC that will provide full details of the proposed merger and the attendant benefits and risks. This communication is not a substitute for the proxy statement/prospectus or any other document that Wilshire or Saehan may file with the SEC or send to their shareholders in connection with the proposed merger. Investors and security holders are urged to read the registration statement on Form S-4, including the definitive proxy statement/prospectus, and all other relevant documents filed with the SEC or sent to shareholders as they become available because they will contain important information about the proposed merger. All documents, when filed, will be available free of charge at the SEC's website (www.sec.gov). You may also obtain these documents by contacting Wilshire's Corporate Secretary, at Wilshire Bancorp, Inc., 3200 Wilshire Boulevard, Los Angeles, California 90010, or via e-mail at alexko@wilshirebank.com. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.
PARTICIPANTS IN THE SOLICITATION
Wilshire, Saehan and their respective directors and executive officers may be deemed to be participants in any solicitation of proxies in connection with the proposed mergers. Information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the merger when they become available. Investors should read the proxy statement/prospectus carefully when it becomes available before making any voting or investment decisions.
For Wilshire Bancorp:
Alex Ko, EVP & CFO
(213) 427-6560
For Saehan Bancorp:
Daniel Kim, EVP & CFO
(213) 637-4802
http://globenewswire.com/news-release/2013/07/15/560133/10040405/en/Wilshire-Bancorp-Announces-Acquisition-of-Saehan-Bancorp.html
Enterprising Investor
11 years ago
Wilshire Bancorp Announces Acquisition of BankAsiana (6/10/13)
Wilshire Bancorp Announces Acquisition of BankAsiana
Acquisition Will Double the Size of Wilshire State Bank's New York/New Jersey Franchise
LOS ANGELES, June 10, 2013 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq:WIBC), the parent company of Wilshire State Bank, announced today the signing of a definitive agreement under which Wilshire will acquire BankAsiana. BankAsiana is a New Jersey state chartered commercial bank with three branches serving the Korean-American community in the New York/New Jersey market. As of March 31, 2013, BankAsiana had total assets of $207.3 million, total net loans of $161.2 million and total deposits of $164.6 million.
The transaction is structured as a series of mergers in which BankAsiana will ultimately merge into Wilshire State Bank, with Wilshire State Bank as the surviving entity. Under terms of the definitive agreement, the transaction is valued at approximately $32.5 million, which will be paid to BankAsiana shareholders and option holders in cash. The transaction is expected to close before the end of 2013, and is subject to approval by the shareholders of BankAsiana, applicable bank and other regulatory approvals and the satisfaction of other customary closing conditions.
"We believe the acquisition of BankAsiana offers significant financial and strategic benefits for Wilshire Bancorp," said Jae Whan Yoo, President and Chief Executive Officer of Wilshire Bancorp and Wilshire State Bank. "BankAsiana is the largest Korean-American bank headquartered in the New York/New Jersey market, which is the second largest Korean-American market in the U.S. This transaction will double the size of Wilshire's New York/New Jersey franchise, further diversifying the loan portfolio and providing greater exposure to fast growing market segments in New York and New Jersey.
"BankAsiana has a healthy, strong and attractive balance sheet and is a proven developer of new business relationships. With higher lending limits, Wilshire Bancorp will be able to capitalize on additional growth opportunities within the existing BankAsiana customer base. In addition, there is significant overlap in our operations that we believe provides meaningful opportunities to enhance our overall efficiency," said Mr. Yoo. "We believe this proposed acquisition is a smart use of our excess capital, allowing us to consolidate a smaller, in-market player that has a similar business model and corporate culture to Wilshire."
"Wilshire is an excellent partner for BankAsiana that will enable us to better serve our customers," said Hong Sik Hur, President and Chief Executive Officer of BankAsiana. "We will be able to offer our customers a broader suite of products and services, and have the financial capacity to accommodate their larger borrowing needs. We are very pleased to be joining the Wilshire family and look forward to leveraging Wilshire's enhanced resources in order to provide a superior banking experience for our customers."
ABOUT WILSHIRE BANCORP
Headquartered in Los Angeles, Wilshire State Bank operates 25 branch offices in California, Texas, New Jersey and New York, and eight loan production offices in Dallas and Houston, TX, Atlanta, GA, Aurora, CO, Annandale, VA, Fort Lee, NJ, Newark, CA, and Bellevue, WA, 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. For more information, please go to www.wilshirebank.com.
ABOUT BANKASIANA
BankAsiana is a New Jersey state-chartered, FDIC-insured commercial bank with a focus on the Korean-American community and other ethnic minorities in the New York/New Jersey area. Headquartered in Palisades Park, New Jersey, BankAsiana operates three branch offices, two in New Jersey, and one in New York. For more information, please go to www.bankasiana.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. Such forward-looking statements include, but are not limited to, statements about the benefits of the proposed transaction involving Wilshire and BankAsiana including future financial and operating results, Wilshire's or BankAsiana's plans, objectives, expectations and intentions, the expected timing of completion of the transaction, and other statements that are not historical facts. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include risks and uncertainties relating to: (i) the ability to obtain the requisite and BankAsiana shareholder approvals; (ii) the risk that Wilshire or BankAsiana may be unable to obtain governmental and regulatory approvals required for the transaction, or required governmental and regulatory approvals may delay the transaction or result in the imposition of conditions that could cause the parties to abandon the transaction; (iii) the risk that a condition to closing of the transaction may not be satisfied; (iv) the timing to consummate the proposed transaction; (v) the risk that the businesses will not be integrated successfully; (vi) the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; (vii) disruption from the transaction making it more difficult to maintain relationships with customers, employees or vendors; (viii) the diversion of management time on transaction-related issues; (ix) general worldwide economic conditions and related uncertainties; (x) the effect of changes in governmental regulations; (xi) credit risk associated with an obligor's failure to meet the terms of any contract with the bank or to otherwise perform as agreed; (xii) interest risk involving the effect of a change in interest rates on both the bank's earnings and the market value of the portfolio equity; (xiii) liquidity risk affecting the bank's ability to meet its obligations when they come due; (xiv) price risk focusing on changes in market factors that may affect the value of traded instruments in "mark-to-market" portfolios; (xv) transaction risk arising from problems with service or product delivery; (xvi) compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards; (xvii) strategic risk resulting from adverse business decisions or improper implementation of business decisions; (xviii) reputation risk that adversely affects earnings or capital arising from negative public opinion; (xix) terrorist activities risk that results in loss of consumer confidence and economic disruptions; (xx) economic downturn risk resulting in deterioration in the credit markets; (xxi) greater than expected noninterest expenses; (xxii) excessive loan losses; and (xxiii) other factors we discuss or refer to in the "Risk Factors" section of our most recent Annual Report on Form 10-K filed with the SEC. Additional risks and uncertainties are identified and discussed in Wilshire's reports filed with the SEC and available at the SEC's website at www.sec.gov. Each forward-looking statement speaks only as of the date of the particular statement and Wilshire undertakes no obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: For Wilshire Bancorp:
Alex Ko, EVP & CFO
(213) 427-6560
alexko@wilshirebank.com
For BankAsiana:
Frank J. Gleeson, SVP & CFO
(201) 282-5506
fgleeson@BankAsiana.com
http://online.wsj.com/article/PR-CO-20130610-900020.html
Enterprising Investor
12 years ago
Wilshire Bancorp Reports Net Income of $11.6 Million or $0.16 Earnings Per Share for First Quarter 2013 (4/22/13)
LOS ANGELES, April 22, 2013 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq:WIBC) (the "Company"), the holding company for Wilshire State Bank (the "Bank"), today reported net income available to common shareholders of $11.6 million, or $0.16 per diluted common share, for the quarter ended March 31, 2013. This compares to net income available to common shareholders of $17.9 million, or $0.25 per common share, for the same period of the prior year, and net income of $15.2 million, or $0.21 per common share, for the fourth quarter of 2012.
Pre-tax, pre-provision income (PTPP)* was $17.0 million for the first quarter of 2013, compared with $16.1 million in the first quarter of 2012, and $11.6 million in the fourth quarter of 2012.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "Our first quarter results reflect the strong core earnings power of the Company, as we generated an annualized return on average assets of 1.70% and an annualized return on average equity of 13.3%. We also showed solid growth in both revenue and pre-tax, pre-provision income over the first quarter of 2012. While overall loan growth remains challenging given the intense competition for quality loans, we are pleased with our continued progress in developing more commercial lending relationships. We originated $55 million of commercial loans during the first quarter of 2013 – our highest level in several years – and also saw significant inflows of demand deposits from new commercial customers. We also continue to see steady improvement in asset quality, which has kept our credit costs low.
"We continue to have a very strong capital position and our operations are generating additional capital each quarter. Accordingly, we have initiated a more active capital management plan designed to both invest in the growth of our franchise and return excess capital to shareholders. The first step in this plan was the authorization of a program to repurchase up to 5% of our outstanding common shares. We are actively evaluating other uses for our capital including but not limited to the potential reinstatement of a common stock dividend, investments in de novo branches, and strategic acquisitions. We are optimistic that our more active capital management plan will create additional value for shareholders going forward," said Mr. Yoo.
Q1 2013 Summary:
•Net income available to common shareholders totaled $11.6 million or $0.16 per diluted common share
•Total revenue of $34.3 million, an increase of 5.8% from the Q4 2012 and 11.1% from the Q1 2012
•Return on average assets of 1.70%; return on average equity of 13.3%
•Operating efficiency ratio reduced to 50.5% for Q1 2013, compared to 64.1% for Q4 2012
•Loans receivable totaled $2.05 billion at March 31, 2013, an increase of 2.0% from $2.01 billion at December 31, 2012
•Non-accrual loans reduced 10.3% and classified loans reduced 6.2% in Q1 2013 compared to Q4 2012
•Continued improvement in credit quality resulted in no provision
for losses on loans and loan commitments for Q1 2013
•Board of Directors authorized repurchase of up to 5% of outstanding common stock
STATEMENT OF OPERATIONS
Net Interest Income and Margin
Net interest income before credit for losses on loans and loan commitments totaled $25.6 million for the first quarter of 2013, an increase of 4.6% from $24.4 million for the first quarter of 2012, and unchanged from the fourth quarter of 2012. The increase from the prior year was primarily due to a reduction in interest expense on deposits.
Net interest margin was 4.09% for the first quarter of 2013, compared to 4.07% in the first quarter of 2012, and 4.33% for the fourth quarter of 2012. The decrease in net interest margin from the fourth quarter of 2012 was primarily due to lower yields on loans, partially offset by a reduction in the cost of deposits.
Loan yields decreased to 5.21% for the first quarter of 2013 from 5.54% for the fourth quarter of 2012 due to new loans that were originated at rates that were lower than that of the existing portfolio, as a result of the low interest rate environment and competitive landscape within the banking industry. The total cost of interest-bearing deposits declined to 0.73% for the first quarter of 2013, down from 0.79% for the fourth quarter of 2012. The reduction in deposit rates was the result of declines in deposit costs across all categories.
Non-Interest Income
Total non-interest income was $8.7 million for the first quarter of 2013, compared to $6.4 million for the first quarter of 2012, and $6.7 million for the fourth quarter of 2012. The increase from the prior quarter was primarily due to an increase in the net gain on sales of loans to $3.5 million during the first quarter of 2013 from $1.2 million during the fourth quarter of 2012.
The $3.5 million in net gains on sales of loans recognized in the first quarter of 2013 represents $3.4 million in gains from the sale of SBA loans, and $13 thousand in gains from the sale of residential mortgage loans.
Non-Interest Expense
Total non-interest expense was $17.3 million for the first quarter of 2013, compared with $14.7 million for the first quarter of 2012, and $20.7 million for the fourth quarter of 2012. The decrease in total non-interest expense from the prior quarter was primarily due to a $3.9 million impairment charge against the Company's FDIC indemnification asset that increased non-interest expense in the fourth quarter of 2012. No impairment charge against the FDIC indemnification asset was recorded in the first quarter of 2013.
Total salaries and employee benefits expense was $8.8 million for the first quarter of 2013, compared with $8.2 million for the first quarter of 2012, and $7.9 million for the fourth quarter of 2012. The increase from the prior year was primarily due to an increase in the number of employees. The increase from the prior quarter was primarily due to seasonally higher payroll taxes and employee benefits.
Other non-interest expense for the first quarter of 2013 totaled $5.8 million, compared with $3.9 million in the first quarter of 2012, and $6.2 million for the fourth quarter of 2012. The increase from the first quarter of 2012 was primarily attributable to an increase in legal fees and other miscellaneous expenses. The decrease from the fourth quarter of 2012 was primarily attributable to a decline in other loan and OREO expenses.
The Company's operating efficiency ratio was 50.5% for the first quarter of 2013, compared with 47.8% for the first quarter of 2012 and 64.1% for the fourth quarter of 2012.
Tax Provision
For the first quarter of 2013, the Company recorded a provision for income taxes totaling $5.4 million, reflecting an effective tax rate of 31.7%. The effective tax rate is lower than historical rates primarily due to the generation of tax credits associated with the Company's investment in affordable housing programs.
BALANCE SHEET
Total gross loans receivable, were $2.06 billion at March 31, 2013, compared to $2.01 billion at December 31, 2012. The increase in total gross loans receivable during the first quarter of 2013 was primarily due to a $29.3 million increase in the commercial and industrial portfolio.
http://globenewswire.com/news-release/2013/04/22/540257/10029442/en/Wilshire-Bancorp-Reports-Net-Income-of-11-6-Million-or-0-16-Earnings-Per-Share-for-First-Quarter-2013.html
Enterprising Investor
12 years ago
WIBC Announces Share Repurchase Program (3/27/13)
LOS ANGELES, March 27, 2013 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq:WIBC), the parent company of Wilshire State Bank, announced today that its Board of Directors has authorized the repurchase of up to 5% of its outstanding common stock or approximately 3.6 million shares. This program will be in effect for 12 months or expire upon completion of the current authorization. Under this program, management is authorized to repurchase shares through Rule 10b5-1 plans, open market purchases, privately negotiated transactions, block purchases or otherwise in accordance with applicable federal securities laws. Depending on market conditions and other factors, repurchases may be made at any time or from time to time, without prior notice. The Company has no obligation to repurchase any shares under this program and may suspend or discontinue it at any time.
"We believe the repurchase of our common stock represents an attractive investment opportunity for the Company, and the authorization of this repurchase program reflects our commitment to deploying our capital in ways that will create value for our shareholders," said Jae Whan Yoo, President and Chief Executive Officer of Wilshire Bancorp and Wilshire State Bank. "Our strong capital ratios afford us the opportunity to repurchase shares of our common stock, while still maintaining ample capital to continue growing our franchise."
COMPANY INFORMATION
Headquartered in Los Angeles, Wilshire State Bank operates 24 branch offices in California, Texas, New Jersey and New York, and eight loan production offices in Dallas and Houston, TX, Atlanta, GA, Aurora, CO, Annandale, VA, Fort Lee, NJ, Newark, CA, and Bellevue, WA, 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. For more information, please go to 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. Any 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. The information in this press release speaks only as of the date of this release and Wilshire Bancorp specifically disclaims any duty to update the information in this press 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.
CONTACT: WILSHIRE BANCORP, INC.Alex Ko, EVP & CFO - (213) 427-6560
www.wilshirebank.com
http://www.nasdaq.com/article/wilshire-bancorp-announces-share-repurchase-program-20130327-01031
Enterprising Investor
12 years ago
WIBC Reports Net Income of $15.2 Million or $0.21 Earnings per Share for Fourth Quarter 2012 (1/23/13)
LOS ANGELES, Jan 23, 2013 (GLOBE NEWSWIRE via COMTEX) -- Wilshire Bancorp, Inc. (the "Company"), the holding company for Wilshire State Bank (the "Bank"), today reported net income available to common shareholders of $15.2 million, or $0.21 per diluted common share, for the quarter ended December 31, 2012. This compares to net income available to common shareholders of $5.8 million, or $0.08 per common share, for the same period of the prior year, and net income of $38.5 million, or $0.54 per common share, for the third quarter of 2012. The increase in net income from the fourth quarter of 2011 is primarily attributable to a $12.0 million negative provision for losses on loans and loan commitments. The decline in net income from the third quarter of 2012 is primarily attributable to the return to a normalized tax provision.
For the full year 2012, the Company reported net income available to common shareholders of $93.7 million, or $1.31 per diluted common share, compared with a net loss of $34.0 million, or ($0.61) per share, for the full year 2011.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "We ended 2012 with another strong quarter, which contributed to the most profitable year in the history of the Company. Our new business development efforts continue to gain momentum, as we had $264 million in loan originations during the fourth quarter, which represents our highest level of loan production in several years. At the same time, our credit quality continues to show strong improvement with non-covered non-accrual loans declining by 32% from the end of the prior quarter. This improvement reflects our effective management of problem assets, which is resulting in a steady migration of non-accrual loans back to accrual status and the continued pay-down of outstanding problem loans.
"As we begin 2013, we are optimistic that we will continue to generate solid profitability. We expect to continue seeing good demand for CRE loans, and we believe the investments we have made to build our commercial, SBA, and residential real estate lending businesses will continue to generate strong loan production this year. In addition, we continue to have a significant amount of excess capital that we can utilize to create additional value for shareholders going forward," said Mr. Yoo.
Q4 2012 Summary:
-- Net income available to common shareholders of $15.2 million or $0.21 per diluted share
-- Loans receivable totaled $2.01 billion at December 31, 2012, an increase of 3.0% from $1.95 billion at September 30, 2012
-- Loan originations for the fourth quarter of 2012 totaled $264.4 million, compared to total loan originations of $209.2 million for the third quarter of 2012
-- Improved deposit mix with non-interest-bearing demand deposits increasing to 27.0% of total deposits at December 31, 2012 from 24.8% at September 30, 2012
-- Non-covered non-accrual loans declined 31.7% and non-covered delinquencies declined 56.8% from end of prior quarter
-- Non-covered classified and criticized loans declined 4.7% and 12.6%, respectively, from Q3 2012 to Q4 2012
-- Improved credit quality and reduced gross charge-offs resulted in a $12.0 million negative provision for losses on loans and loan commitments for Q4 2012
STATEMENT OF OPERATIONS
Net Interest Income and Margin
Net interest income before credit for losses on loans and loan commitments totaled $25.6 million in the fourth quarter of 2012, an increase of 1.6% from $25.2 million for the fourth quarter of 2011, and unchanged from the third quarter of 2012. The increase from the prior year was primarily due to a decline in interest expense on both deposits and borrowings.
Net interest margin was 4.33% for the fourth quarter of 2012, compared to 4.17% in the fourth quarter of 2011, and 4.35% for the third quarter of 2012. The decrease in net interest margin from the third quarter of 2012 was primarily due to lower yields on loans, partially offset by a reduction in the cost of deposits and a reduction in interest earning cash at the Federal Reserve Bank.
Loan yields decreased to 5.54% for the fourth quarter of 2012 from 5.73% for the third quarter of 2012 due to the large amount of loans that were originated at rates that were lower than that of the existing portfolio, due to the low interest rate environment and competitive landscape within the banking industry. The total cost of interest-bearing deposits declined to 0.79% for the fourth quarter of 2012, down from 0.87% for the third quarter of 2012. Cost of total deposits was reduced to 0.59% for the fourth quarter of 2012, compared to 0.66% during the previous quarter. The reduction in deposit rates was a result of declines in deposit costs across all categories combined with an increase in demand deposits as a percentage of total deposits.
Non-Interest Income
Total non-interest income was $6.7 million for the fourth quarter of 2012, compared to $5.8 million for the fourth quarter of 2011, and $6.6 million for third quarter of 2012. The major categories of non-interest income in the fourth quarter of 2012 were relatively unchanged from the prior quarter. Other non-interest income for the fourth quarter of 2012 slightly increased compared to prior quarters due to an increase in loan servicing income.
The $1.2 million in net gains on sales of loans recognized in the fourth quarter of 2012 represents $1.1 million in gains from the sale of SBA loans, and $84 thousand in gains from the sale of mortgage and other loans.
Non-Interest Expense
Total non-interest expense was $20.7 million for the fourth quarter of 2012, compared with $16.2 million for the fourth quarter of 2011, and $18.3 million for the third quarter of 2012. The increase in total non-interest expense for the fourth quarter of 2012 compared to prior quarters was primarily due to a higher impairment charge against the FDIC indemnification asset.
During the fourth quarter of 2012, the Company recorded an additional impairment of the FDIC indemnification asset amounting to $3.9 million. The impairment reflected the continuing overall improved credit quality in the covered loan portfolio. The FDIC indemnification asset balance at December 31, 2012, after reflecting the impairment charge of $3.9 million, was $5.4 million.
Total salaries and employee benefits expense was $7.9 million in the fourth quarter of 2012, compared with $7.1 million in the fourth quarter of 2011, and $9.4 million in the third quarter of 2012. The decrease from the prior quarter was primarily due to a reduction in bonus accruals recorded during the fourth quarter of 2012. Compared to the fourth quarter of 2011, salaries and benefits for the fourth quarter of 2012 increased primarily due to an increase in the number of employees.
Other non-interest expense for the fourth quarter of 2012 totaled $6.2 million, compared with $6.5 million in the fourth quarter of 2011, and $4.4 million for the third quarter of 2012. The increase from the prior quarter was primarily attributable to increased professional fees and other loan expenses.
The Company's operating efficiency ratio was 64.1% for the fourth quarter of 2012, compared with 52.4% for the fourth quarter of 2011 and 57.0% for the third quarter of 2012. The increase in efficiency ratio for the fourth quarter of 2012 compared to prior quarters is largely due to the $3.9 million impairment charge on the FDIC indemnification asset and the increase in other non-interest expense.
Tax Provision
For the fourth quarter of 2012, the Company recorded a provision for income taxes totaling $8.4 million, reflecting an effective tax rate of 35.6%. This reflects the Company's return to a more normalized effective tax rate following several quarters of recording no tax provision or a tax benefit due to the reversal of the valuation allowance that had been established against the Company's deferred tax asset.
BALANCE SHEET
Total gross loans, including loans held-for-sale, were $2.16 billion at December 31, 2012, compared to $2.09 billion at September 30, 2012. The increase in total gross loans during the fourth quarter of 2012 was primarily due to the increase in loan originations during the quarter.
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.
http://www.marketwatch.com/story/wilshire-bancorp-reports-net-income-of-152-million-or-021-earnings-per-share-for-fourth-quarter-2012-2013-01-23
vpagano
12 years ago
Consolidation coming within the niche Korean-American banking group?
http://www.bloomberg.com/news/2013-01-09/hanmi-said-to-seek-sale.html?cmpid=yhoo
Hanmi Said to Seek Sale
By Matthew Monks & Dakin Campbell - Jan 9, 2013 4:22 PM ET
Hanmi Financial Corp. (HAFC), the second- largest U.S. bank catering to Korean-Americans, is looking for a buyer and hired DelMorgan & Co. to advise on a sale, said three people with knowledge of the matter.
The lender may attract interest from BBCN Bancorp Inc. (BBCN) and Wilshire Bancorp Inc. (WIBC), which like Hanmi are based in Los Angeles and target Korean-Americans, said two of the people, who asked not to be named because the process is private. Hanmi rose more than 8 percent today, giving the firm a market value of about $481 million. It has assets of about $2.8 billion.
Hanmi, led by Chief Executive Officer Jay Yoo, is pursuing a sale less than two years after its takeover by South Korean lender Woori Finance Holdings Co. collapsed. Hanmi may draw interest again from Woori, as well as South Korea’s Hana Bank, both seeking expansion in the U.S., the people said. The lender was founded more than 30 years ago and operates in areas such as San Diego, San Francisco and Orange County.
Hanmi shares rose 8.1 percent to $15.26 as of 4 p.m. in New York.
Woori Finance agreed in May 2010 to buy Hanmi for as much as $240 million. That deal was terminated in June 2011, when the firms agreed to a business alliance instead. Officials at Woori and Hana declined to comment, while representatives at Wilshire and BBCN didn’t return calls seeking comment.
David Yang, Hanmi’s corporate strategy officer, didn’t return a call seeking comment. Rob Delgado, co-founder of DelMorgan, declined to comment. Delgado helped found the Santa Monica, California-based investment-banking boutique in 2011.
Enforcement Actions
Hanmi has 27 branches in California. Its shares had gained 76 percent in the year through yesterday as the company recovered from steep commercial loan losses in 2009 and 2010.
BBCN is the largest Korean-American-focused bank, with $5.3 billion in assets as of Sept. 30, according to SNL Financial, a bank-research firm in Charlottesville, Virginia. Wilshire is the third-largest with $2.6 billion in assets.
The California Department of Financial Institutions and Federal Reserve Bank of San Francisco lifted late in 2012 two enforcement actions placed on Hanmi in 2009. The actions had required Hanmi to maintain certain capital levels and restricted the bank from paying dividends, increasing debt and changing its businesses plan without regulatory permission.
Hanmi also last year began to draw down a nearly $80 million deferred tax allowance, or pool of money that represents a tax benefit a company can’t recognize unless it is healthy.
The drawdown sharply enhanced the company’s book value, which was $364 million as of Sept. 30, up almost 80 percent from a year earlier, according to the company’s third-quarter earnings report.
To contact the reporters on this story: Matthew Monks in New York at mmonks1@bloomberg.net; Dakin Campbell in San Francisco at dcampbell27@bloomberg.net
To contact the editors responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net; David Scheer at dscheer@bloomberg.net
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