LOS ANGELES, April 21, 2009 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. ("Wilshire" or the "Company") (Nasdaq:WIBC), the holding company for Wilshire State Bank, today reported that net income in the first quarter of 2009 was $3.1 million or $0.07 per diluted common share, compared to $5.1 million or $0.17 per diluted common share in the fourth quarter 2008, and $7.1 million or $0.24 per diluted common share in the first quarter of 2008. Wilshire increased its provision for losses on loans and loan commitments to address the increase in non-performing loans and deterioration of economic conditions. The ratio of the allowance for loan losses to gross loans increased to 1.65% at March 31, 2009, as compared to 1.43% at December 31, 2008.
"As the credit environment further deteriorates and the financial crisis continues to unfold, we expect that 2009 will be a challenging year," stated Ms. Joanne Kim, President and CEO. "However, we have prudently made provision for losses on loans and loan commitments of $6.7 million in the current quarter as a measure to address the challenge. We continue to focus on our strategic goal of strengthening our capital and balance sheet positions as we work through these difficult times."
FINANCIAL HIGHLIGHTS:
* Total deposits increased at an annualized rate of 20% to $1.91 billion at March 31, 2009, compared to $1.81 billion in 4Q08. * Allowance for loan losses to gross loans ratio increased to 1.65% from 1.43% in 4Q08. * Provision for losses on loans and loan commitments increased to $6.7 million, from $5.9 million in 4Q08. * Net interest margin decreased to 3.33% from 3.73% in 4Q08. * Capital position remained strong, with a total risk based capital ratio of 16.7% and a ratio of tangible common equity to tangible assets of 7.3%, compared to 17.1% and 7.7%, respectively, in 4Q08.
CREDIT QUALITY
Based on the Company's reserve methodology, which takes into account, among other factors the level and trends of classified, past due and nonaccrual loans, general market conditions and portfolio concentrations, Wilshire prudently increased the allowance for loan losses to $34.2 million or 1.65% of gross loans. This compares to $29.4 million or 1.43% of gross loans at December 31, 2008, and $22.1 million or 1.17% of gross loans at March 31, 2008. Wilshire recorded $6.7 million of provision for losses on loans and loan commitments, compared to $5.9 million in the fourth quarter of 2008 and $1.4 million in the first quarter of 2008.
Nonperforming loans increased to $29.7 million, or 1.43% of gross loans at March 31, 2009, from $15.6 million, or 0.76% of gross loans at December 31, 2008, and $12.0 million, or 0.64% of gross loans, at March 31, 2008. Non-performing loans at March 31, 2009 consisted of $22.5 million of commercial real estate loans and $6.0 million of commercial and industrial loans. This compares to $9.1 million of commercial real estate loans and $6.1 million of commercial and industrial loans at December 31, 2008.
The increase of $14.2 million in nonperforming loans, compared to December 31, 2008, is mainly attributable to two borrowing relationship:
* $8.4 million loans secured by land in Las Vegas, Nevada. The borrower filed chapter 11 bankruptcy due to the death of the main shareholder of the borrowing entity. The updated appraisal indicated a loan-to-value ratio of 47%. * $4.3 million loan secured by land in Malibu, California. Based on an updated appraisal report, the value of collateral is $8.2 million.
The Company performed an impairment analysis for all nonaccrual loans, and recorded specific reserves for impaired loans in accordance with Statement of Financial Accounting Standards (SFAS) No.114, Accounting by Creditors for Impairment of a Loan. Wilshire increased specific reserves for impaired loans by $2.9 million during the quarter. The increase in the specific reserve is mainly related to one commercial loan of $7.3 million to a borrower in the wholesale distribution business. The loan is current, but the recent appraisal of the underlying collateral reflected a decrease in value, and the Company accordingly allocated a $2.1 million specific reserve.
Gross loan charge-offs decreased to $2.4 million during the quarter, compared to $2.6 million in the fourth quarter of 2008 and $1.1 million in the first quarter 2008. $1.6 million or 68% of total charge offs for the first quarter 2009 consisted of commercial and industrial loans and $672,000 or 28% consisted of commercial real estate loans. Net quarterly charge offs (non-annualized) to average gross loans decreased to 0.11% from 0.12% at December 31, 2008.
Wilshire's real estate owned and repossessed assets were $6.3 million at March 31, 2009, compared to $2.7 million at December 31, 2008 and $154,000 at March 31, 2008. The increase was due mainly to eight SBA loans, totaling $5 million, which were converted into other real estate owned (OREO) during the current quarter. As of March 31, 2009, OREO consisted of 14 properties, totaling $6.3 million. Most of these OREO properties are in escrows and are scheduled to close during the second quarter 2009, with an expected gain.
CAPITAL POSITION
Wilshire's capital ratios remain strong and continue to exceed the "well capitalized" guidelines established by regulatory agencies. The leverage ratio was 12.79% at March 31, 2009, as compared to 13.25% at December 31, 2008, and 10.24% at March 31, 2008. The total risk-based capital ratio was 16.69% at March 31, 2009, as compared to 17.09% at December 31, 2008, and 14.37% at March 31, 2008. Tangible common equity per common share was $6.47 at March 31, 2009, up from $6.38 and $5.70 at December 31, 2008 and March 31, 2008, respectively.
BALANCE SHEET
Total loans increased 10% to $2.07 billion at March 31, 2009, from $1.88 billion a year earlier. Commercial real estate loans comprised 81% of the loan portfolio at March 31, 2009. Commercial and industrial loans accounted for 18% of total loans and consumer loans made up 1% of total loans as of March 31, 2009.
Total assets increased to $2.61 billion at March 31, 2009, up 7% from $2.45 billion at December 31, 2008 and up 16% from $2.26 billion a year earlier. Total deposits increased to $1.91 billion at March 31, 2009, up 5% from $1.81 billion at December 31, 2008 and from $1.73 billion from a year earlier. "We continue to experience stiff competition in our markets for core deposits," said Mr. Alex Ko, Senior Vice President and Chief Financial Officer. "However, our dedicated efforts in our 'Yes 2009' marketing campaign has helped us improve our core deposit account balances compared to December 31, 2008," he added. Non-interest-bearing demand deposits increased 7% to $298.0 million, as compared to $277.5 million at December 31, 2008. Non-time deposits and time deposits both increased 5% to $738.6 million and $1.17 billion, respectively, at March 31, 2009, as compared to $706.2 million and $1.11 billion at December 31, 2008.
A majority of loan growth during the first quarter of 2009 was funded by the increase in customer deposits. Wilshire also took advantage of the increased FHLB borrowing capacity and its low interest cost as a secondary financing source. FHLB capacity and borrowing increased to $687.6 million and $340.0 million, respectively, at March 31, 2009, compared to $560.1 million and $260.0 million as of December 31, 2008.
At March 31, 2009, the investment portfolio allocation was 89% United States government agency securities (which are either guaranteed by the U.S. government or considered risk-free), 9% municipal securities, and 2% corporate securities. Of the 11% of the portfolio that was not comprised of government securities, 74% carries the top rating of "Aaa/AAA," while the remaining 26% carries an intermediate "Investment Grade" rating of at least "Baa1/BBB+" or above. The investment portfolio does not contain any government sponsored enterprises (GSE) preferred securities, or any distressed corporate securities that required other-than-temporary-impairment charges during the first quarter of 2009.
NET INTEREST MARGIN
Due to a combined 175 basis point reduction in a series of federal funds rate cuts during the fourth quarter of 2008, the weighted average loan yield decreased 74 basis points to 5.95% in the first quarter of 2009 from 6.69% in the fourth quarter of 2008, while the weighted average yield of interest-earning assets decreased 77 basis points to 5.66% in the first quarter of 2009 from 6.43% in the preceding quarter. Likewise, weighted average deposit cost decreased 31 basis points to 2.87% in the first quarter of 2009 from 3.18% in the fourth quarter of 2008, and weighted average cost of interest-bearing liabilities in the first quarter of 2009 decreased 40 basis points to 2.79% from 3.19% in the preceding quarter. As a result, net interest margin compressed 40 basis points to 3.33% in the first quarter of 2009 from 3.73% in the fourth quarter of 2008.
The decrease in average loan yield compared to the prior quarter resulted primarily from a reduction in interest income from variable or floating rate loans, which absorbed only a partial impact of the 175 basis point reduction in the federal funds rate during the fourth quarter of 2008, but the reduction had full impact for those loans during the first quarter of 2009. As of March 31, 2009, 49% of the loan portfolio consisted of floating rate loans.
Net interest income reversal on nonaccrual loans was $674,000 in the first quarter of 2009, as compared to $18,000 in the preceding quarter. Net interest income reversal in the first quarter of 2009 negatively impacted the net interest margin by 12 basis points. If the $674,000 and $18,000 net interest income reversals had not occurred, the net interest margin would have been 3.45% and 3.73% for the first quarter of 2009 and the fourth quarter of 2008, respectively.
The decrease in average deposit cost during the first quarter of 2009 was primarily because of the average cost on time deposits of $100,000 or more declined to 2.86% in the first quarter of 2009 from 3.17% in the prior quarter. In addition, the average cost of money market accounts declined to 2.57% in the first quarter of 2009, compared to 3.06% in the prior quarter. "While we continue to use FHLB advances as a cost effective alternative to our funding needs, our primary goal is to continue to fund loan growth with low-cost core deposits," said Mr. Ko.
INCOME STATEMENT AND PERFORMANCE METRICS
In the first quarter of 2009, interest income was down 12% and interest expense was down 25% from the same quarter a year earlier. Net interest income, at $19.7 million in the first quarter of 2009, was essentially unchanged from the year-earlier quarter.
Total noninterest income decreased 27% to $3.7 million in the first quarter of 2009 from $5.2 million in the same quarter a year earlier. The substantial decrease in noninterest income was primarily due to the absence of gain on SBA loan sales and an $832,000 one-time loss on a single loan sale during the first quarter of 2009, as compared to a gain of $864,000 on SBA loan sales in the year-earlier quarter. The decrease in gain on sale of loans was partially offset by a 5% growth in service charges on deposits. Service charges on deposits increased to $2.9 million in the first quarter of 2009 from $2.7 million in the same quarter a year earlier.
SBA loan production levels decreased 72% to $6.3 million in the first quarter of 2009 from $22.3 million in the first quarter a year earlier, reflecting the overall weaker economic environment and stricter underwriting standards. The average sales premium of SBA 7(a) guaranteed loans, however, was increased slightly during the first quarter of 2009. Nonetheless, the Company still considered the premium low, resulting in the decision not to sell SBA loans in the first quarter of 2009.
"During the first quarter of 2009 we continued to contain noninterest expenses, even while continuing the planned expansion of our branch network into the East Coast market," said Mr. Ko. "Salary and employee expense was the largest noninterest expense item, and we managed to reduce it by 11% to $6.2 million in the first quarter of 2009, as compared to $7.0 million in the first quarter of 2008. Consistent with the decrease in noninterest income, our noninterest expenses also decreased by 2% to $12.0 million from $12.2 million in the first quarter a year earlier. Our efficiency ratio increased only slightly to 51.22% in the first quarter of 2009 from 49.10% in the year-earlier first quarter."
Primarily due to additional investments in low income housing partnerships, Wilshire's effective tax rate for the first quarter of 2009 decreased to 35.1% from 39.3% in the prior quarter and 37.5% in the first quarter a year of 2008.
CONFERENCE CALL
Management will host its quarterly conference call on April 21, 2009, at 11:00 a.m. PDT (2:00 p.m. EDT). Investment professionals are invited to participate in the call by dialing 1-866-783-2141 using passcode 49895144.
COMPANY INFORMATION
Headquartered in Los Angeles, Wilshire State Bank operates 21 branch offices in California, Texas, New Jersey and New York, and five loan production offices in Dallas, Houston, Atlanta, Denver, and Annandale, VA, and is a SBA preferred lender nationwide. Wilshire State Bank is a community bank with a focus on commercial real estate lending and general commercial banking, with its primary market encompassing the multi-ethnic populations of the Los Angeles Metropolitan area. Wilshire Bancorp's strategic goals include increasing shareholder and franchise value by continuing to grow its multi-ethnic banking business and expanding its geographic reach to other similar markets with strong levels of small business activity.
FORWARD-LOOKING STATEMENTS
Statements concerning future performance, events, or any other guidance on future periods constitute forward-looking statements that are subject to a number of risks and uncertainties that might cause actual results to differ materially from stated expectations. Specific factors include, but are not limited to, loan production and sales, credit quality, the ability to expand net interest margin, the ability to continue to attract low-cost deposits, success of expansion efforts, competition in the marketplace and general economic conditions. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes included in Wilshire Bancorp's most recent reports on Form 10-K and Form 10-Q, as filed with the Securities and Exchange Commission, as they may be amended from time to time. Results of operations for the most recent quarter are not necessarily indicative of operating results for any future periods. Any projections in this release are based on limited information currently available to management and are subject to change. Since management will only provide guidance at certain points during the year, Wilshire Bancorp will not necessarily update the information. Such information speaks only as of the date of this release. Additional information on these and other factors that could affect financial results are included in filings by Wilshire Bancorp with the Securities and Exchange Commission.
CONSOLIDATED BALANCE SHEET
--------------------------
(dollars in thousands) (unaudited)
Three Twelve
March 31, Dec. 31, Month March 31, Month
2009 2008 Change 2008 Change
---------- ---------- --- ---------- ---
ASSETS:
Cash and Due from
Banks $ 61,268 $ 67,540 -9% $ 77,225 -21%
Federal Funds Sold and
Other Cash Equivalents 85,001 30,001 183% 20,004 325%
---------- ---------- ----------
Total Cash and Cash
Equivalents 146,269 97,541 50% 97,229 50%
---------- ---------- ----------
Investment Securities
Available For Sale 320,055 229,136 40% 218,505 46%
Investment Securities
Held To Maturity 133 139 -4% 377 -65%
---------- ---------- ----------
Total Investment
Securities 320,188 229,275 40% 218,882 46%
---------- ---------- ----------
Loans
Real Estate
Construction 42,075 43,180 -3% 46,047 -9%
Residential Real
Estate 78,666 77,846 1% 69,542 13%
Commercial Real
Estate 1,558,507 1,519,082 3% 1,390,629 12%
Commercial and
Industrial 375,899 387,752 -3% 349,842 7%
Consumer 18,854 23,669 -20% 27,440 -31%
---------- ---------- ----------
Total Loans 2,074,001 2,051,529 1% 1,883,500 10%
Allowance For Loan
Losses (34,156) (29,437) 16% (22,072) 55%
---------- ---------- ----------
Loans Receivable, Net
of Allowance for Loan
Losses 2,039,845 2,022,092 1% 1,861,428 10%
---------- ---------- ----------
Accrued Interest
Receivable 10,122 9,975 1% 9,832 3%
Due from Customers on
Acceptances 312 2,213 -86% 2,332 -87%
Other Real Estate Owned 6,282 2,663 136% 133 4609%
Premises and Equipment 11,475 11,265 2% 10,828 6%
Federal Home Loan Bank
(FHLB) Stock, at Cost 17,537 17,537 0% 11,280 55%
Cash Surrender Value
of Life Insurance 17,559 17,395 1% 16,367 7%
Investment in
affordable housing
partnerships 11,214 9,019 24% 6,518 72%
Deferred Income Taxes 11,815 12,051 -2% 7,106 66%
Servicing Assets 4,790 4,838 -1% 4,931 -3%
Goodwill 6,675 6,675 0% 6,675 0%
Other Assets 7,199 7,472 -4% 6,894 4%
---------- ---------- ----------
TOTAL ASSETS $2,611,282 $2,450,011 7% $2,260,435 16%
========== ========== ==========
LIABILITIES AND
STOCKHOLDERS' EQUITY:
LIABILITIES:
Non-interest Bearing
Demand Deposits $ 298,044 $ 277,542 7% $ 308,037 -3%
Savings and Interest
Checking 64,818 65,923 -2% 58,146 11%
Money Market Deposits 375,761 362,719 4% 391,987 -4%
Time Deposits in
denomination of
$100,000 or more 969,001 902,804 7% 793,235 22%
Other Time Deposits 197,823 203,613 -3% 176,182 12%
---------- ---------- ----------
Total Deposits 1,905,447 1,812,601 5% 1,727,587 10%
---------- ---------- ----------
Federal Home Loan Bank
borrowings and Federal
Funds Purchased 340,000 274,000 24% 240,000 42%
Acceptance Outstanding 312 2,213 -86% 2,332 -87%
Junior Subordinated
Debentures 87,321 87,321 0% 87,321 0%
Accrued Interest Payable 7,330 6,957 5% 10,339 -29%
Other Liabilities 13,166 11,859 11% 15,320 -14%
---------- ---------- ----------
Total Liabilities 2,353,576 2,194,951 7% 2,082,899 13%
---------- ---------- ----------
STOCKHOLDERS' EQUITY:
Preferred stock -
$1,000 par value-
Authorized 5,000,000
shares, Issued and
Outstanding 62,158,
62,158 and 0 Shares,
at March 31, 2009,
December 31, 2008, and
March 31, 2008,
respectively 59,562 59,443 0% -- 0%
Common Stock - No Par
Value-Authorized
80,000,000 Shares,
Issued and Outstanding
29,413,757, 29,413,757
and 29,391,177 Shares,
at March 31, 2009,
December 31, 2008, and
March 31, 2008,
respectively 54,238 54,038 0% 50,137 8%
Retained Earnings 141,008 140,340 0% 125,483 12%
Accumulated Other
Comprehensive Income,
Net of Taxes 2,898 1,239 134% 1,916 51%
---------- ---------- ----------
Total Stockholders'
Equity 257,706 255,060 1% 177,536 45%
---------- ---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $2,611,282 $2,450,011 7% $2,260,435 16%
========== ========== ==========
CONSOLIDATED STATEMENT OF OPERATIONS
------------------------------------
(dollars in thousands, except per share data) (unaudited)
Quarter Quarter Three Quarter One
Ended Ended Month Ended Year
March 31, Dec. 31, % March 31, %
2009 2008 Change 2008 Change
------- ------- ------ ------- ------
INTEREST INCOME
Interest and
Fees on Loans $30,193 $33,615 -10% $35,318 -15%
Interest on
Investment
Securities 2,942 2,729 8% 2,584 14%
Interest on
Federal Funds
Sold 289 62 366% 80 259%
------- ------- -------
Total Interest
Income 33,424 36,406 -8% 37,982 -12%
------- ------- -------
INTEREST EXPENSE
Deposits 11,181 11,841 -6% 14,738 -24%
FHLB Advances
and Other
Borrowings 2,579 3,436 -25% 3,500 -26%
------- ------- -------
Total Interest
Expense 13,760 15,277 -10% 18,238 -25%
------- ------- -------
Net Interest
Income Before
Provision for
Losses on Loans
and Loan
Commitments 19,664 21,129 -7% 19,744 0%
Provision for
Losses on Loans
and Loan
Commitments 6,700 5,910 13% 1,400 379%
------- ------- -------
Net Interest
Income After
Provision for
Losses on Loans
and Loan
Commitments 12,964 15,219 -15% 18,344 -29%
------- ------- -------
NONINTEREST
INCOME
Service Charges
on Deposits 2,899 3,049 -5% 2,748 5%
(Loss) Gain on
Sales of Loans (831) -- 0% 864 -196%
Other 1,669 1,492 12% 1,542 8%
------- ------- -------
Total Noninterest
Income 3,737 4,541 -18% 5,154 -27%
------- ------- -------
NONINTEREST
EXPENSES
Salaries and
Employee
Benefits 6,207 5,168 20% 6,976 -11%
Occupancy &
Equipment 1,676 1,636 2% 1,425 18%
Data Processing 827 790 5% 764 8%
Other 3,277 3,723 -12% 3,059 7%
------- ------- -------
Total Noninterest
Expenses 11,987 11,317 6% 12,224 -2%
------- ------- -------
Income Before
Income Taxes 4,714 8,443 -44% 11,274 -58%
Income Tax 1,655 3,317 -50% 4,224 -61%
------- ------- -------
NET INCOME $ 3,059 $ 5,126 -40% $ 7,050 -57%
======= ======= =======
Preferred Stock
Cash Dividend
and Accretion of
Preferred Stock
Discount 920 155 492% -- 0%
------- ------- -------
NET INCOME
AVAILABLE TO
COMMON
SHAREHOLDERS $ 2,139 $ 4,971 -57% $ 7,050 -70%
======= ======= =======
PER COMMON SHARE
INFORMATION
Basic Earnings
Per Common
Share $ 0.07 $ 0.17 -57% $ 0.24 -70%
Diluted
Earnings Per
Common Share $ 0.07 $ 0.17 -57% $ 0.24 -70%
WEIGHTED-AVERAGE
COMMON SHARES
OUTSTANDING:
Basic 29,413,757 29,409,061 29,276,871
Diluted 29,422,290 29,422,727 29,341,080
SUMMARY OF FINANCIAL DATA
-------------------------
(dollars in thousands, except per share data) (unaudited)
AVERAGE BALANCES
----------------
Quarter Ended Quarter Ended Quarter Ended
March 31, 2009 December 31, 2008 March 31, 2008
---------- ---------- ----------
Average
Assets $2,525,225 $2,426,075 $2,211,860
Average
Equity $ 259,072 $ 205,462 $ 175,332
Average
Net Loans
(includes
LHFS) $2,030,595 $2,010,671 $1,828,889
Average
Deposits $1,832,479 $1,770,237 $1,704,820
Average Time
Deposits in
denomination
of $100,000
or more $ 933,494 $ 834,971 $ 788,630
Average
Interest
Earning
Assets $2,362,786 $2,263,477 $2,061,264
PROFITABILITY
-------------
Quarter Ended Quarter Ended Quarter Ended
March 31, December 31, March 31,
2009 2008 2008
---------- ---------- ----------
Annualized
Return on
Average Assets 0.48% 0.85% 1.28%
Annualized
Return on
Average
Equity 4.72% 9.98% 16.08%
Efficiency
Ratio 51.22% 44.08% 49.10%
Annualized
Operating
Expense/
Average
Assets 1.90% 1.87% 2.21%
Annualized
Net Interest
Margin 3.33% 3.73% 3.83%
DEPOSIT COMPOSITION
-------------------
Quarter Quarter Quarter
Ended Cost Ended Cost Ended Cost
March 31, of Dec. 31, of March 31, of
2009 Fund 2008 Fund 2008 Fund
---------- ---- --------- ---- --------- ----
Noninterest
Bearing
Demand
Deposits 15.6% 0.00% 15.3% 0.00% 17.8% 0.00%
Savings &
Interest
Checking 3.4% 2.79% 3.6% 2.89% 3.4% 2.38%
Money Market
Deposits 19.7% 2.57% 20.0% 3.06% 22.7% 3.76%
Time
Deposits of
$100,000 or
More 50.9% 2.86% 49.8% 3.17% 45.9% 4.46%
Other Time
Deposits 10.4% 3.54% 11.3% 3.54% 10.2% 4.60%
--------- --------- ---------
Total
Deposits 100.0% 2.44% 100.0% 2.68% 100.0% 3.46%
CAPITAL RATIOS
--------------
Quarter Ended Quarter Ended Quarter Ended
March 31, 2009 December 31, 2008 March 31, 2008
---------- ---------- ----------
Tier 1 Leverage
Ratio 12.79% 13.25% 10.24%
Tier 1 Risk-Based
Capital Ratio 15.15% 15.36% 11.75%
Total Risk-Based
Capital Ratio 16.69% 17.09% 14.37%
Total
Shareholders'
Equity $ 257,965 $ 255,060 $ 177,536
Book Value
Per Common
Share $ 6.75 $ 6.65 $ 6.04
Tangible
Common
Equity Per
Common
Share * $ 6.47 $ 6.38 $ 5.70
Tangible
Common
Equity to
Tangible
Assets ** 7.31% 7.68% 7.44%
* Tangible common equity excludes goodwill, other intangible assets,
and TARP preferred stock
** Tangible assets exclude goodwill and other intangible assets
SUMMARY OF FINANCIAL DATA
-------------------------
(dollars in thousands, except per share data) (unaudited)
ALLOWANCE FOR LOAN LOSSES Quarter Quarter Quarter
------------------------- Ended Ended Ended
(net of SBA guaranteed portion) March 31, Dec. 31, March 31,
2009 2008 2008
-------- -------- --------
Balance at Beginning of Period $ 29,437 $ 25,950 $ 21,579
Provision for Losses on Loans 7,009 5,902 1,512
Recoveries on loans previously
charged off 113 191 121
Less Charge Offs (2,403) (2,606) (1,140)
-------- -------- --------
Balance at End of Period $ 34,156 $ 29,437 $ 22,072
======== ======== ========
Net Loan Charge-offs/Average Total
Loans 0.11% 0.12% 0.06%
Charge-offs/Average Total Loans 0.12% 0.13% 0.06%
Allowance for Loan Losses/Gross
Loans 1.65% 1.43% 1.17%
Allowance for Loan Losses/
Non-accrual Loans 116.71% 191.90% 196.64%
Allowance for Loan Losses/
Non-performing Loans 114.84% 189.27% 184.35%
Allowance for Loan Losses/
Total Assets 1.31% 1.20% 0.98%
Allowance for Loan Losses/
Non-performing Assets 94.82% 161.61% 163.26%
ALLOWANCE FOR OFF-BALANCE Quarter Quarter Quarter
------------------------- Ended Ended Ended
SHEET ITEMS March 31, Dec. 31, March 31,
----------- 2009 2008 2008
(net of SBA guaranteed portion) -------- -------- --------
Balance at Beginning of Period $ 1,243 $ 1,235 $ 1,998
(Recapture of) Provision for
Losses on Off-balance Sheet Items (310) 8 (112)
-------- -------- --------
Balance at End of Period $ 933 $ 1,243 $ 1,886
======== ======== ========
NON-PERFORMING ASSETS Quarter Quarter Quarter
--------------------- Ended Ended Ended
(net of SBA guaranteed portion) March 31, Dec. 31, March 31,
2009 2008 2008
-------- -------- --------
Nonaccrual Loans:
Construction $ -- $ -- $ --
Real Estate Secured 23,185 9,334 8,061
Commercial and Industrial 5,774 5,874 2,914
Consumer 307 131 250
-------- -------- --------
Total 29,266 15,339 11,225
Loans 90 days or more past due
and still accruing:
Construction -- -- --
Real Estate Secured 240 -- 503
Commercial and Industrial 235 213 56
Consumer -- -- 189
-------- -------- --------
Total 475 213 748
Total Nonperforming Loans 29,741 15,552 11,973
-------- -------- --------
Total Nonperforming Loans/Gross
Loans 1.43% 0.76% 0.64%
Troubled Debt Restructurings -- -- 1,393
OREO and Repossessed Vehicles 6,282 2,663 154
-------- -------- --------
Total Nonperforming Assets,
net of SBA Guarantee $ 36,023 $ 18,215 $ 13,520
======== ======== ========
Total Nonperforming Assets/
Total Assets 1.38% 0.74% 0.60%
Restructured Loans $ 7,962 $ 2,161 $ --
LOAN ORIGINATION AMOUNT Quarter Quarter Quarter
----------------------- Ended Ended Ended
March 31, Dec. 31, March 31,
2009 2008 2008
-------- -------- --------
Total new loan origination amount,
excluding renewal $ 64,838 $ 72,412 $174,639
SBA new loan origination amount,
excluding renewal $ 6,276 $ 9,190 $ 22,266
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(dollars in thousands) (unaudited)
For the Three Months Ended
------------------------------------------------------
March 31, 2009 December 31, 2008
------------------------------------------------------
Average Interest Average Average Interest Average
Balance Income/ Yield/ Balance Income/ Yield/
Expense Rate Expense Rate
INTEREST
EARNING ASSETS
LOANS:
Real Estate
Loans $1,654,867 $24,905 6.02% $1,604,234 $26,980 6.73%
Commercial
Loans 388,710 4,418 4.55% 412,842 5,449 5.28%
Consumer
Loans 21,150 301 5.69% 24,665 370 6.00%
------------------- ---- ------------------- ----
Total Loans
- Gross 2,064,727 29,624 5.74% 2,041,741 32,799 6.43%
Loan Fees
toward Yield 569 816
Allowance for
Loan Losses
& Unearned
income (34,132) (31,070)
------------------- ---- ------------------- ----
Net Loans 2,030,595 30,193 5.95% 2,010,671 33,615 6.69%
------------------- ---- ------------------- ----
INVESTMENT
SECURITIES AND
OTHER INTEREST-
EARNING ASSETS:
Investment
Securities 286,553 2,943 4.11% 229,730 2,729 4.75%
Federal Funds
Sold 45,639 289 2.53% 23,076 62 1.07%
------------------- ---- ------------------- ----
Total
Investment
Securities
and Other
Earning
Assets 332,192 3,232 3.89% 252,806 2,791 4.42%
------------------- ---- ------------------- ----
TOTAL INTEREST-
EARNING
ASSETS $2,362,787 $33,425 5.66% $2,263,477 $36,406 6.43%
=================== ==== =================== ====
INTEREST
BEARING
LIABILITIES
INTEREST-BEARING
DEPOSITS:
Money Market $ 362,733 $ 2,332 2.57% $ 380,275 $ 2,905 3.06%
NOW 19,557 46 0.94% 18,989 58 1.22%
Savings 43,241 393 3.63% 43,029 390 3.63%
Time Deposits
of $100,000
or More 933,494 6,668 2.86% 834,971 6,618 3.17%
Other Time
Deposits 196,714 1,743 3.54% 211,351 1,870 3.54%
------------------- ---- ------------------- ----
Total
Interest
Bearing
Deposits 1,555,739 11,182 2.87% 1,488,615 11,841 3.18%
------------------- ---- ------------------- ----
BORROWINGS:
FHLB Advances
and Other
Borrowings 327,344 1,658 2.03% 340,424 2,318 2.72%
Junior
Subordinated
Debentures 87,321 921 4.22% 87,321 1,118 5.12%
------------------- ---- ------------------- ----
Total
Borrowings 414,665 2,579 2.49% 427,745 3,436 3.21%
------------------- ---- ------------------- ----
TOTAL INTEREST
BEARING
LIABILITIES $1,970,404 $13,761 2.79% $1,916,360 $15,277 3.19%
=================== ==== =================== ====
NET INTEREST
INCOME $19,664 $21,129
======= =======
NET INTEREST
SPREAD 2.87% 3.24%
==== ====
NET INTEREST
MARGIN 3.33% 3.73%
==== ====
For the Three Months Ended
--------------------------
March 31, 2008
--------------------------
Average Interest Average
Balance Income/ Yield/
Expense Rate
INTEREST EARNING ASSETS
LOANS:
Real Estate Loans $1,486,208 $27,531 7.41%
Commercial Loans 340,095 5,990 7.04%
Consumer Loans 29,873 526 7.04%
------------------- ----
Total Loans - Gross 1,856,176 34,047 7.34%
Loan Fees toward Yield 1,271
Allowance for Loan Losses & Unearned
income (27,287)
------------------- ----
Net Loans 1,828,889 35,318 7.72%
------------------- ----
INVESTMENT SECURITIES AND
OTHER INTEREST-EARNING ASSETS:
Investment Securities 222,524 2,584 4.64%
Federal Funds Sold 9,851 81 3.27%
------------------- ----
Total Investment Securities and
Other Earning Assets 232,375 2,665 4.59%
------------------- ----
TOTAL INTEREST-EARNING ASSETS $2,061,264 $37,983 7.37%
=================== ====
INTEREST BEARING LIABILITIES
INTEREST-BEARING DEPOSITS:
Money Market $ 396,595 $ 3,725 3.76%
NOW 22,520 79 1.41%
Savings 32,617 249 3.05%
Time Deposits of $100,000 or More 788,630 8,799 4.46%
Other Time Deposits 163,993 1,886 4.60%
------------------- ----
Total Interest Bearing Deposits 1,404,355 14,738 4.20%
------------------- ----
BORROWINGS:
FHLB Advances and Other Borrowings 217,593 2,043 3.76%
Junior Subordinated Debentures 87,321 1,458 6.69%
------------------- ----
Total Borrowings 304,914 3,501 4.59%
------------------- ----
TOTAL INTEREST BEARING LIABILITIES $1,709,269 $18,239 4.27%
=================== ====
NET INTEREST INCOME $19,744
=======
NET INTEREST SPREAD 3.10%
====
NET INTEREST MARGIN 3.83%
====