WIBC Wilshire Bancorp, Inc. (MM)

Insert the following graph before the tabular material: 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 is 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. The corrected release reads: WILSHIRE BANCORP FIRST QUARTER EARNINGS UP 29%; DEPOSITS INCREASED 28% AND LOANS GREW 26% Wilshire Bancorp, Inc. (Nasdaq:WIBC), the holding company for Wilshire State Bank, today reported that strong loan and deposit growth combined with improving efficiencies generated record first quarter profits. For the quarter ended March 31, 2006, net income increased 29% to $7.8 million compared to $6.1 million in the first quarter of 2005, with earnings per diluted share increasing 28% to $0.27, from $0.21 in the first quarter of 2005. Wilshire continues to generate some of the best performance measures in the industry. In the first quarter of 2006 the return on average assets was 1.84%, compared to 1.87% a year ago. The return on average equity was 26.4%, versus 26.3% in the first quarter of 2005. "In addition to our established California and Texas franchises, we have opened loan production offices to expand our presence in other major metropolitan markets," stated Soo Bong Min, President and CEO, who recently extended his employment contract with Wilshire through May 2009. "We select locations with strong economies and multi-ethnic business environments, then hire experienced lenders to build upon. An extension of our growth strategy is the pending acquisition of Liberty Bank of New York. We now have the regulatory approvals to move forward, and I expect the transaction will close in the second quarter, adding two branches and roughly $56 million in assets." As a result of the ongoing expansion and continued success in Southern California, total loan originations increased 8% from a year ago to $208 million in the first quarter of 2006, compared to $192 million in the same quarter last year. Total loans increased by 26% to $1.30 billion at the end of March 2006, compared to $1.03 billion at March 31, 2005. Assets grew to $1.74 billion up 26% from $1.38 billion a year prior. Total deposits grew 28% to $1.48 billion, compared to $1.16 billion at the end of the first quarter last year. "While we have continued to grow the bank, we have remained conservative in our lending practices," Min said. "As a result, credit quality has improved on both a sequential-quarter and year-over-year basis." Non-performing loans (NPLs) dropped to $2.2 million, or 0.17% of gross loans, compared to $2.5 million, or 0.20% of gross loans at year-end 2005, and $2.2 million, or 0.21% of gross loans at the end of the first quarter last year. Non-performing assets (NPAs) decreased to $2.5 million, or 0.15% of total assets at March 31, 2006, compared to $2.8 million, or 0.17% of total assets three months prior, and $2.5 million, or 0.18% of total assets a year ago. "Since our loan portfolio is largely secured by commercial real estate and continues to grow rapidly, our provision for loan losses was over $1 million in the quarter, while net charge offs were just $78,000," stated Brian Cho, EVP and Chief Financial Officer. "As a result, the allowance for loan losses increased 27% from a year ago to $14.9 million, which represents 1.13% of gross loans and far exceeds NPAs." "Continued solid growth in loans and deposits has fueled our success, contributing to 27% growth in net interest income," Min said. "However, while interest income was up 59% from the first quarter last year, interest expense was up 134%. We rely on retail deposits to help fund our loan growth so we must remain price competitive. While interest rates in general are up from a year ago, customers are also choosing time deposits over checking accounts to get a better yield. As a result, our net interest margin dropped to 4.37% in the most recent quarter, compared to 4.82% in the preceding quarter and 4.54% in the first quarter last year." In the first quarter of 2006, net interest income was $17.3 million, compared to $13.6 million in first quarter of last year. Noninterest income grew 17% to $5.8 million, versus $4.9 million in the first quarter of 2005, primarily due to an increase in service fees and gain on sale of loans. Noninterest expense increased 13% to $8.9 million in the first quarter of 2006, compared to $7.8 million in the first quarter of 2005, reflecting the additional staff and occupancy expenses associated with the expansion. "Our efficiency ratio improved to below 40% in the first quarter of 2006, reflecting our continued efforts to keep operating expenses in check," Cho said. "While we continue to implement cost management strategies to further improve operations, further improvement in our efficiency ratio appears unlikely this year." The efficiency ratio improved to 38.5% in the first quarter of 2006, compared to 42.2% a year ago. At March 31, 2006, shareholders' equity was $120.1 million, up 26% from $95.2 million a year earlier, and book value grew to $4.18 per share from $3.33 a year prior. Capital ratios continue to exceed the "Well Capitalized" guidelines established by regulatory agencies. Management will host its quarterly conference call today, April 25, at 10:30 am PDT (1:30 pm EDT). Investment professionals are invited to participate in the call by dialing 866-713-8564 and using passcode 89016137. Current and prospective shareholders are also invited to listen to the live or archived call at www.wilshirebank.com, or www.earnings.com. Yesterday, Standard & Poor's announced the addition of Wilshire Bancorp to its S&P SmallCap 600 index. The SmallCap 600 is maintained by the S&P Index Committee, and includes selected U.S. companies with market capitalizations of $300 million -- $1 billion. Criteria include financial viability, adequate liquidity and float, reasonable price and a balance of sector representation. Wilshire Bancorp and its Wilshire State Bank subsidiary have received significant other accolades for growth, performance and profitability. In January 2006, US Banker magazine named Wilshire Bancorp third in its All-Star Lineup - The Top 20 Banks of 2006, based on year-over-year return on equity. In September 2005, Fortune named Wilshire the 79th fastest growing public company in the nation. A month earlier, U.S. Banker ranked Wilshire seventh on its list of the Top 100 Publicly Traded Mid-Tier Banks, those with less than $10 billion in assets, based on their three-year ROE. In addition, Sandler O'Neill identified Wilshire as one of its Bank and Thrift Sm-All Stars in 2004 and 2005, among just 38 companies out of 573 with market capitalizations below $2 billion. Headquartered in Los Angeles, Wilshire State Bank operates 16 branch offices in California and Texas and nine Loan Production Offices in San Jose, Seattle, Oklahoma City, San Antonio, Las Vegas, Houston, Atlanta, Denver and New York, and is an SBA preferred lender at all of its office locations. The 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. www.wilshirebank.com 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 is 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. -0- *T CONSOLIDATED STATEMENT OF OPERATIONS ---------------------------------------------- (unaudited) (dollars in thousands, except per Quarter Quarter Quarter share data) Ended Ended Ended One March 31, Dec. 31, March 31, Year 2006 2005 2005 Change ----------- ----------- ----------- ------ INTEREST INCOME Interest on Loans & Leases $ 27,650 $ 27,192 $ 18,230 52% Interest on Securities 1,776 1,432 871 104% Interest on Federal Funds Sold and Other Cash Equivalents 1,615 1,319 427 279% ----------- ----------- ----------- Total Interest Income 31,041 29,943 19,528 59% INTEREST EXPENSE Deposits 12,253 10,439 5,110 140% FHLB Advances and Other 1,509 1,490 778 94% ----------- ----------- ----------- Total Interest Expense 13,762 11,929 5,888 134% Net Interest Income 17,279 18,014 13,640 27% Provision for Loan Losses 1,060 880 500 112% ----------- ----------- ----------- Net Interest Income After Provision for Loan Losses 16,219 17,134 13,140 23% OTHER OPERATING INCOME Fees on Deposits 2,155 2,039 1,720 25% Gain on Sales of Loans 2,350 2,636 2,023 16% Other 1,259 1,124 1,193 6% ----------- ----------- ----------- Total Other Operating Income 5,764 5,799 4,936 17% OPERATING EXPENSES Salaries and Employee Benefits 5,256 5,609 4,375 20% Occupancy & Equipment 896 969 833 7% Other 2,712 3,255 2,631 3% ----------- ----------- ----------- Total Other Operating Expenses 8,864 9,833 7,839 13% ----------- ----------- ----------- Income Before Taxes 13,119 13,100 10,237 28% Income Tax 5,296 5,341 4,167 27% ----------- ----------- ----------- NET INCOME $ 7,823 $ 7,759 $ 6,070 29% =========== =========== =========== Per Share Data Basic Earnings Per Common Share $ 0.27 $ 0.27 $ 0.21 27% Earnings Per Share - Assuming Dilution $ 0.27 $ 0.27 $ 0.21 28% Weighted Average Shares Outstanding 28,714,017 28,591,879 28,423,693 Weighted Average Shares Outstanding Including Dilutive Effect Of Stock Options 29,108,778 28,960,724 28,864,095 CONSOLIDATED BALANCE SHEET ---------------------------- One (unaudited)(dollars in Year thousands, except share March 31, December 31, March 31, ------ data) 2006 2005 2005 Change ---------- ---------- ---------- ------ ASSETS: Noninterest-Earning Demand Deposits and Cash on Hand $ 70,031 $ 68,205 $ 51,815 35% Federal Funds Sold and Other Cash Equivalents 114,003 126,003 125,003 -9% ---------- ---------- ---------- Total Cash and Cash Equivalents 184,034 194,208 176,818 4% Interest-Bearing Deposits in Other Financial Institutions 500 500 - Securities Available For Sale 171,144 138,650 91,378 87% Securities Held To Maturity 22,848 22,860 29,129 -22% ---------- ---------- ---------- Total Securities 194,492 162,010 120,507 61% Loans & Leases Receivable 1,312,588 1,262,560 1,044,964 26% Allowance For Loan Losses 14,870 13,999 11,669 27% ---------- ---------- ---------- Loans & Leases Receivable, Net 1,297,718 1,248,561 1,033,295 26% Accrued Interest Receivable 7,556 6,892 4,631 63% Acceptance 3,509 3,221 2,121 65% Other Real Estate Owned 294 294 308 -5% Premises and Equipment 8,900 8,956 6,929 28% Federal Home Loan Bank (FHLB) Stock, at Cost 6,254 6,182 4,318 45% Cash Surrender Value of Life Insurance 15,255 15,099 11,703 30% Other Assets 20,601 20,850 16,667 24% ---------- ---------- ---------- TOTAL ASSETS $1,738,613 $1,666,273 $1,377,297 26% ========== ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY: LIABILITIES: Non-interest Bearing Demand Deposits $ 312,292 $ 292,171 $ 281,717 11% Savings & NOW Deposits 43,318 46,374 46,298 -6% Money Market Deposits 329,751 297,313 231,410 42% Time Deposits of $100,000 or More 652,526 630,662 492,815 32% Other Time Deposits 143,350 142,945 107,632 33% ---------- ---------- ---------- Total Deposits 1,481,237 1,409,465 1,159,872 28% FHLB Advances 50,000 61,000 61,000 -18% Acceptance 3,509 3,221 2,121 65% Subordinated Debentures 61,547 61,547 46,083 34% Accrued Interest and Other Liabilities 22,173 17,936 13,043 70% ---------- ---------- ---------- Total Liabilities 1,618,466 1,553,169 1,282,119 26% STOCKHOLDERS' EQUITY: Common Stock - No Par Value- Authorized, 80,000,000 Shares Issued and Outstanding, 28,739,760, 28,630,600 and 28,571,080 Shares, Respectively 42,213 41,340 41,042 3% Retained Earnings 79,175 72,790 54,532 45% Accumulated Other Comprehensive Income, Net of Taxes (1,241) (1,026) (396) 213% ---------- ---------- ---------- Total Stockholders' Equity 120,147 113,104 95,178 26% ---------- ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,738,613 $1,666,273 $1,377,297 26% ========== ========== ========== AVERAGE BALANCES Quarter Quarter Quarter ---------------------------------- Ended Ended Ended (unaudited)(dollars in thousands) March 31, December 31, March 31, 2006 2005 2005 ---------- ------------ ----------- Average Assets $1,703,524 $1,614,097 $1,298,900 Average Equity 118,469 111,205 92,349 Average Net Loans (includes LHFS) 1,266,976 1,221,325 1,026,188 Average Deposits 1,444,595 1,361,429 1,105,393 Average Time Deposits of $100,000 or more 649,306 590,461 466,728 Average Interest Earning Assets 1,581,171 1,496,144 1,201,554 CONSOLIDATED FINANCIAL RATIOS Quarter Quarter Quarter ---------------------------------- Ended Ended Ended (unaudited)(dollars in thousands, March 31, December 31, March 31, except per share data) 2006 2005 2005 ----------- ------------ ----------- Annualized Return on Average Assets 1.84% 1.92% 1.87% Annualized Return on Average Equity 26.41% 27.91% 26.29% Efficiency Ratio 38.47% 41.29% 42.20% Annualized Operating Expense/Average Assets 2.08% 2.44% 2.41% Annualized Net Interest Margin 4.37% 4.82% 4.54% Tier 1 Leverage Ratio 9.47% 9.39% 9.81% Tier 1 Risk-Based Capital Ratio 11.84% 11.60% 11.74% Total Risk-Based Capital Ratio 14.43% 14.41% 14.08% Book Value Per Share $ 4.18 $ 3.95 $ 3.33 ALLOWANCE FOR LOAN LOSSES Quarter Quarter Quarter ---------------------------------- Ended Ended Ended (unaudited) (dollars in thousands) March 31, December 31, March 31, 2006 2005 2005 ---------- ------------ ----------- Balance at Beginning of Period $ 13,999 $ 13,551 $ 11,111 Provision for Loan Losses 1,060 880 500 Less Charge Offs (Net Recoveries) 78 383 (56) Less: Provision for (recapture of) losses on off balance sheet item 111 49 (2) ---------- ---------- ---------- Balance at End of Period $ 14,870 $ 13,999 $ 11,669 Loan Loss Allowance/Gross Loans 1.13% 1.11% 1.12% Loan Loss Allowance/Non-performing Loans 667.63% 567.15% 521.38% Loan Loss Allowance/Total Assets 0.86% 0.84% 0.85% Loan Loss Allowance/Non-performing Assets 589.68% 506.71% 458.27% NON-PERFORMING ASSETS ---------------------------------- (net of guaranteed portion) March 31, December 31, March 31, 2006 2005 2005 ------------------------------------ Accruing Loans - 90 Days Past Due $ 438 $ 665 $ 96 Non-accrual Loans 1,790 1,804 2,142 Restructured Loans - - - ----------- ----------- ---------- Total Non-performing Loans 2,228 2,469 2,238 Total Non-performing Loans/Gross Loans 0.17% 0.20% 0.21% OREO 294 294 308 ---------- ---------- ---------- Total Non-performing Assets $ 2,522 $ 2,763 $ 2,546 Total Non-performing Assets/Total Assets 0.15% 0.17% 0.18% *T