Wilshire Bancorp, Inc. (Nasdaq:WIBC), the holding company for
Wilshire State Bank, today reported a net loss to common
shareholders of $52.1 million, or ($1.77) per basic and diluted
share, for the quarter ended March 31, 2011. This compares to net
income available to common shareholders of $2.4 million, or $0.08
per basic and diluted share, for the same period of the prior year.
The net loss reported for the first quarter of 2011 is attributable
to tax expenses of $38.1 million that resulted from a deferred tax
asset valuation allowance recorded in the first quarter of 2011, in
addition to an increase in provision for loan losses as a result of
reclassifying $93.4 million in loans to loans held-for-sale and
marking the loans to their expected fair value.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp,
said, "My highest priority since joining Wilshire Bancorp in
February of this year has been to ensure sound credit
administration practices and conservative underwriting standards.
As part of this process, we have separated the loan production and
underwriting functions. We have taken and will continue to take
aggressive steps to reduce our level of problem assets, which
includes future loan sales.
"Although the Bank's recent financial performance has declined
due in part to the disposition of problem assets, we believe we
still have an attractive franchise with strong earnings power. The
Bank has steadily reduced its funding costs, resulting in positive
trends in net interest income and net interest margin, while
generating increasing non-interest income through the production
and sale of SBA loans. We are now working on streamlining our
operations, which should enhance efficiencies, reduce our
non-interest expense levels, and further increase our earnings
power. As we make steady progress on improving our asset quality
and reducing credit costs, we believe we can return to being the
high-performing bank that our customers and shareholders
deserve."
FIRST QUARTER 2011 SUMMARY:
- Increase in net interest margin – Net interest margin increased
81 basis points to 4.53% for the first quarter of 2011, compared to
3.72% for the quarter ending December 31, 2010.
- Increase in allowance coverage – Allowance for loan loss
coverage of gross loans increased to 5.02% at March 31, 2011,
compared to 4.76% at December 31, 2010.
- Decrease in non-accrual inflows – Inflow of loans into
non-accrual status decreased from $40.3 million during the fourth
quarter of 2010 to $25.2 million during the first quarter of 2011,
representing a decline of $15.1 million or 37.5%. However, total
non-accrual loans increased to $80.1 million at March 31, 2011,
from $60.9 million at December 31, 2010, largely due to an increase
in covered non-accrual loans.
- Transfer of loans to held-for-sale – Loans
held-for-sale at the end of the first quarter of 2011 totaled
$136.8 million, and increased from $17.1 million at December 31,
2010.
- Deferred tax asset valuation allowance – A valuation allowance
for Federal and State deferred tax assets was recorded during the
first quarter of 2011 resulting in a net tax expense of $38.1
million.
CREDIT QUALITY
For the first quarter of 2011, the Company recorded a provision
for loan losses of $44.8 million compared to $83.6 million in the
fourth quarter of 2010. Approximately $25.0 million in additional
provision for loan losses was recorded for the first quarter of
2011 due to the partial charge-off of loans as they were
transferred to held-for-sale.
The allowance for loan losses increased to $114.8 million, or
5.02% of gross loans, at March 31, 2011, compared to $111.0
million, or 4.76% of gross loans, at December 31, 2010. The
coverage ratio of allowance for loan losses to non-performing
assets was 129.55% at March 31, 2011, compared with 128.69% at
December 31, 2010. Allowance coverage of Legacy Wilshire loans
increased from 5.23% at December 31, 2010 to 5.50% at March 31,
2011.
The Company sold a total of $12.3 million in loans (not
including SBA or mortgage loans) during the first quarter of 2011
and received proceeds of $9.7 million, which amounts to a discount
of 21.4% based on carrying values. In addition to the note sales,
the Company transferred approximately $93.4 million in loans (not
including SBA or mortgage loans) to held-for-sale status during the
first quarter, most of which are expected to be sold during the
second quarter of 2011. These loans include $21.0 million in
non-accrual loans, $11.5 million in performing troubled debt
restructured loans, and $7.5 million in delinquent loans. The
Company marked all the loans categorized as held-for-sale to their
fair values, which accounted for $31.5 million in charge-offs
recorded in the first quarter of 2011.
In addition to the transfer of loans to held-for-sale, the new
CEO implemented the following actions in the first quarter of 2011
to further strengthen the credit administration practices:
- Separated the loan production and underwriting functions,
- Established an enterprise risk management department and
appointed a Chief Risk Officer responsible for managing credit
risk,
- Created a credit taskforce consisting of members of the
finance, credit administration, and risk management groups whose
mandate is to improve credit quality and reduce problem
assets,
- Increased the level of credit training throughout the
organization; and
- Instituted a new in-house lending limit to single
borrowers.
These actions are the start of a process to create a stronger
credit culture, which the Company believes will lead to improved
credit quality and financial performance.
Non-accrual Loans
As previously disclosed, upon acquiring certain assets and
liabilities of the former Mirae Bank, the Company entered into loss
sharing agreements 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 agreements 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.
At March 31, 2011, total non-accrual loans totaled $80.1
million, or 3.50% of gross loans, compared to $71.2 million, or
3.06% of gross loans, at December 31, 2010. The increase in
non-accrual loans occurred primarily in the covered loan portfolio,
which increased from $10.4 million at December 31, 2010, to $18.1
million at March 31, 2011, an increase of $7.7
million. Meanwhile non-covered non-accrual loans only
increased $1.2 million from $60.9 million at December 31, 2010, to
$62.1 million at March 31, 2011.
The following is a table showing "covered" and "non-covered"
non-accrual loans by loan type:
| NON-ACCRUAL
LOANS (Dollars In Thousands) |
| (Net of SBA Guaranteed Portions) |
Quarter Ended |
| Non-Covered Loans |
Mar 31, 2011 |
Dec 31, 2010 |
Sep 30, 2010 |
Jun 30, 2010 |
Mar 31, 2010 |
| |
|
|
|
|
|
| Construction |
$ -- |
$ -- |
$ 2,660 |
$ -- |
$ -- |
| Real Estate Secured |
60,363 |
59,571 |
56,779 |
61,200 |
75,470 |
| Commercial & Industrial |
1,695 |
1,284 |
3,272 |
3,051 |
7,603 |
| Consumer |
11 |
27 |
37 |
34 |
42 |
| Total Non-Covered Non-Accrual Loans |
$ 62,069 |
$ 60,882 |
$ 62,748 |
$ 64,285 |
$ 83,115 |
| |
|
|
|
|
|
| Covered Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Real Estate Secured |
$ 16,269 |
$ 8,005 |
$ 10,569 |
$ 17,232 |
$ 19,696 |
| Commercial & Industrial |
1,795 |
2,345 |
3,031 |
1,599 |
2,213 |
| Total Covered Non-Accrual Loans |
$ 18,064 |
$ 10,350 |
$ 13,600 |
$ 18,831 |
$ 21,909 |
| |
|
|
|
|
|
| Total Non-Accrual
Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Construction |
$ -- |
$ -- |
$ 2,660 |
$ -- |
$ -- |
| Real Estate Secured |
76,632 |
67,576 |
67,348 |
78,432 |
95,166 |
| Commercial & Industrial |
3,490 |
3,629 |
6,303 |
4,650 |
9,816 |
| Consumer |
11 |
27 |
37 |
34 |
42 |
| Total Non-Accrual Loans |
$ 80,133 |
$ 71,232 |
$ 76,348 |
$ 83,116 |
$ 105,024 |
Although we experienced an increase in non-accrual loans in the
first quarter, inflow of new loans into non-accrual status declined
by 37.5% from $40.3 million total inflows during the fourth quarter
of 2010 to $25.2 million of inflow during the first quarter of
2011. Non-covered or legacy inflows into non-accrual status
declined to $15.3 million at March 31, 2011 from $38.7 million at
December 31, 2010, a decline of 60.4% on a quarterly basis. Of the
$25.2 million in inflows into non-accrual status during the first
quarter of 2011, 39.1%, or $9.9 million, were covered or acquired
loans.
Outflow of non-accrual loans decreased from $45.4 million during
the fourth quarter of 2010 to $16.3 million during the first
quarter of 2011. The decrease was a result of a decline in
loan sales during the first quarter of 2011 compared to the
previous quarter which reduced the total number and balance of
outflows. Outflow of non-covered loans totaled $14.2 million for
the quarter ending March 31, 2011, down from $43.2 million in total
outflows for the previous quarter.
Impaired
Loans
Loans are classified as impaired when based on current
information, it is probable that the Company will not be able to
collect all principal and interest payments due in accordance with
the terms of the loan. Impaired loans at March 31, 2011
totaled $176.4 million, compared with $118.5 million at December
31, 2010. Total impaired loans by loan category are shown in
the table below:
| IMPAIRED LOANS
(Dollars In Thousands) |
| (Net of SBA Guaranteed Portions) |
Quarter Ended |
| Non-Covered Loans |
Mar 31, 2011 |
Dec 31, 2010 |
Sep 30, 2010 |
Jun 30, 2010 |
Mar 31, 2010 |
| |
|
|
|
|
|
| Construction |
$ -- |
$ -- |
$ 2,660 |
$ -- |
$ -- |
| Real Estate Secured |
149,402 |
93,452 |
157,068 |
128,538 |
140,305 |
| Commercial & Industrial |
5,456 |
5,649 |
8,505 |
3,870 |
7,537 |
| Consumer |
-- |
27 |
37 |
-- |
-- |
| Total Non-Covered Impaired Loans |
$ 154,858 |
$ 99,128 |
$ 168,270 |
$ 132,408 |
$ 147,842 |
| |
|
|
|
|
|
| Covered Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Real Estate Secured |
18,256 |
15,120 |
18,837 |
20,036 |
36,849 |
| Commercial & Industrial |
3,332 |
4,216 |
5,479 |
1,801 |
3,078 |
| Total Covered Impaired Loans |
$ 21,588 |
$ 19,336 |
$ 24,316 |
$ 21,837 |
$ 39,927 |
| |
|
|
|
|
|
| Total Impaired
Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Construction |
$ -- |
$ -- |
$ 2,660 |
$ -- |
$ -- |
| Real Estate Secured |
167,658 |
108,572 |
175,905 |
148,574 |
177,154 |
| Commercial & Industrial |
8,788 |
9,865 |
13,984 |
5,671 |
10,615 |
| Consumer |
-- |
27 |
37 |
-- |
-- |
| Total Impaired Loans |
$ 176,446 |
$ 118,464 |
$ 192,586 |
$ 154,245 |
$ 187,769 |
The increase in impaired loans during the first quarter of 2011
is largely attributable to the transfer of loans to held-for-sale
status given that the loans are expected to be sold at a discount
to book value and therefore are deemed to be impaired and are
reclassified accordingly. Approximately $69.6 million in loans that
are currently in held-for-sale status were not impaired at December
31, 2010.
Loan Delinquencies
At March 31, 2011, total loan delinquencies increased to $41.2
million from $34.5 million at December 31, 2010. As a
percentage of gross loans, delinquencies increased to 1.80% at
March 31, 2011, from 1.48% at December 31, 2010. A significant
driver of the increase in total delinquent loans for the first
quarter of 2011 was the inflow of one construction loan with a
balance of $15.0 million. This single loan accounted for 36.4%
of all delinquent loans at March 31, 2011.
Delinquent loans by days past due and loan type are reflected in
the two tables below:
| DELINQUENT
LOANS -- By Days Past Due (Dollars In
Thousands) |
| (Net of SBA Guaranteed Portions) |
Quarter Ended |
| Non-Covered Loans |
Mar 31, 2011 |
Dec 31, 2010 |
Sep 30, 2010 |
Jun 30, 2010 |
Mar 31, 2010 |
| |
|
|
|
|
|
| 30 - 59 Days Past Due |
$ 8,680 |
$ 15,641 |
$ 13,582 |
$ 17,146 |
$ 17,266 |
| 60 - 89 Days Past Due |
26,389 |
11,007 |
18,126 |
14,844 |
5,290 |
| 90 Days, and still accruing |
-- |
-- |
304 |
1 |
-- |
| Total Non-Covered Delinquent Loans |
$ 35,069 |
$ 26,648 |
$ 32,012 |
$ 31,991 |
$ 22,556 |
| |
|
|
|
|
|
| Covered Loans |
|
|
|
|
|
| |
|
|
|
|
|
| 30 - 59 Days Past Due |
$ 5,166 |
$ 4,254 |
$ 1,754 |
$ 4,108 |
$ 3,318 |
| 60 - 89 Days Past Due |
968 |
3,566 |
1,053 |
910 |
4,640 |
| 90 Days, and still accruing |
-- |
-- |
-- |
-- |
-- |
| Total Covered Delinquent Loans |
$ 6,134 |
$ 7,820 |
$ 2,807 |
$ 5,018 |
$ 7,958 |
| |
|
|
|
|
|
| Total Delinquent
Loans |
|
|
|
|
|
| |
|
|
|
|
|
| 30 - 59 Days Past Due |
$ 13,846 |
$ 19,895 |
$ 15,336 |
$ 21,254 |
$ 20,584 |
| 60 - 89 Days Past Due |
27,357 |
14,573 |
19,179 |
15,754 |
9,930 |
| 90 Days, and still accruing |
-- |
-- |
304 |
1 |
-- |
| Total Delinquent Loans |
$ 41,203 |
$ 34,468 |
$ 34,819 |
$ 37,009 |
$ 30,514 |
Loan Charge-offs
Loan charge-offs for the first quarter of 2011 totaled $41.7
million, compared to $71.9 million in the fourth quarter of
2010. Approximately 94.1% of the charge-offs in the first
quarter of 2011 were commercial real estate loans. Of the
total charge-offs in the first quarter of 2011, $31.5 million or
75.6% were charge-offs that resulted from the transfer of loans to
held-for-sale status, which are expected to be sold during the
second quarter of 2011.
Charge-offs by loan type is reflected in the table
below:
| LOAN CHARGE-OFFS
(Dollars In Thousands) |
| |
Quarter Ended |
| Non-Covered Loans |
Mar 31, 2011 |
Dec 31, 2010 |
Sep 30, 2010 |
Jun 30, 2010 |
Mar 31, 2010 |
| |
|
|
|
|
|
| Construction |
$ 805 |
$ 401 |
$ -- |
$ 2,654 |
$ -- |
| Real Estate Secured |
39,062 |
60,317 |
27,215 |
25,015 |
4,360 |
| Commercial & Industrial |
1,151 |
10,487 |
4,741 |
4,241 |
1,290 |
| Consumer |
19 |
14 |
57 |
81 |
115 |
| Total Non-Covered Charge-Offs Loans |
$ 41,037 |
$ 71,219 |
$ 32,013 |
$ 31,991 |
$ 5,765 |
| |
|
|
|
|
|
| Covered Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Real Estate Secured |
$ 171 |
$ 252 |
$ 1,331 |
$ 3,449 |
$ 13 |
| Commercial & Industrial |
489 |
431 |
1,475 |
1,569 |
50 |
| Total Covered Charge-Offs Loans |
$ 660 |
$ 683 |
$ 2,806 |
$ 5,018 |
$ 63 |
| |
|
|
|
|
|
| Total Charge-Offs
Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Construction |
$ 805 |
$ 401 |
$ -- |
$ 2,654 |
$ -- |
| Real Estate Secured |
39,233 |
60,569 |
28,546 |
28,464 |
4,373 |
| Commercial & Industrial |
1,640 |
10,918 |
6,216 |
5,810 |
1,340 |
| Consumer |
19 |
14 |
57 |
81 |
115 |
| Total Charge-Offs Loans |
$ 41,697 |
$ 71,902 |
$ 34,819 |
$ 37,009 |
$ 5,828 |
BALANCE SHEET
During the first quarter of 2011, the Company continued to
reposition its balance sheet by utilizing cash and cash equivalents
and loan sales to fund the run-off of higher-costing money market
and time deposit accounts. This repositioning had the effect
of lowering the Company's overall cost of funds. As a result of
this strategy, total assets decreased to $2.79 billion at March 31,
2011, from $2.97 billion at December 31, 2010.
Total loans including loans held-for-sale totaled $2.28 billion
at March 31, 2011, compared to $2.33 billion at December 31,
2010. The decrease was primarily due to charge-offs, loan
payoffs in the commercial real estate portfolio, and sale of loans
during the first quarter. Loan originations for the first
quarter of 2011 were approximately $69 million (excluding SBA and
residential mortgage loans), 73% of which were commercial real
estate loans and 27% were commercial loans. This compares to total
loan originations (excluding SBA and residential mortgage loans) of
$112.4 million during the fourth quarter of 2010 and $61.8 million
during the first quarter of 2010.
Loan Categories
| GROSS LOANS BY
TYPE (Dollars In Thousands) |
| |
Quarter Ended |
| Non-Covered Loans |
Mar 31, 2011 |
Dec 31, 2010 |
Sep 30, 2010 |
Jun 30, 2010 |
Mar 31, 2010 |
| |
|
|
|
|
|
| Construction |
$ 74,538 |
$ 72,258 |
$ 70,808 |
$ 59,376 |
$ 47,564 |
| Real Estate Secured |
1,725,298 |
1,757,329 |
1,832,726 |
1,830,387 |
1,795,142 |
| Commercial & Industrial |
274,392 |
276,739 |
308,277 |
316,370 |
313,872 |
| Consumer |
14,587 |
15,574 |
16,937 |
18,265 |
16,113 |
| Total Non-Covered Gross Loans |
$ 2,088,815 |
$ 2,121,899 |
$ 2,228,748 |
$ 2,224,398 |
$ 2,172,691 |
| |
|
|
|
|
|
| Covered Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Real Estate Secured |
$ 154,655 |
$ 159,698 |
$ 166,490 |
$ 179,124 |
$ 188,353 |
| Commercial & Industrial |
45,024 |
49,680 |
53,613 |
56,357 |
61,527 |
| Consumer |
104 |
111 |
125 |
150 |
191 |
| Total Covered Gross Loans |
$ 199,783 |
$ 209,490 |
$ 220,228 |
$ 235,631 |
$ 250,071 |
| |
|
|
|
|
|
| Total Gross Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Construction |
$ 74,538 |
$ 72,258 |
$ 70,808 |
$ 59,376 |
$ 47,564 |
| Real Estate Secured |
1,879,953 |
1,917,027 |
1,999,216 |
2,009,511 |
1,983,495 |
| Commercial & Industrial |
319,416 |
326,419 |
361,890 |
372,727 |
375,399 |
| Consumer |
14,691 |
15,685 |
17,062 |
18,415 |
16,304 |
| Total Gross Loans |
$ 2,288,598 |
$ 2,331,389 |
$ 2,448,976 |
$ 2,460,029 |
$ 2,422,762 |
Total deposits were $2.27 billion at March 31, 2011, down from
$2.46 billion at December 31, 2010. The decline was
experienced in all interest-bearing deposit categories. This
decline was partially offset by a 4% increase in non-interest
bearing deposits as a result of management's continued focus to
attract demand deposits accounts.
Total other real estate owned (OREOs) was $8.5 million at March
31, 2011, down from $15.0 million at December 31, 2010.
Outflow from OREO in the first quarter of 2011 consisted of
21 sold properties totaling $12.8 million. Inflows to OREO in
the first quarter of 2011 consisted of 8 properties totaling $6.3
million.
Capital Ratios
The Company's capital ratios continued to be in excess of "well
capitalized" regulatory requirements as shown in the following
table:
| (Dollars In thousands, except per share
info) |
March 31, 2011 |
Well Capitalized Regulatory
Requirements |
Total Excess Above Well
Capitalized Requirements |
| |
|
|
|
| Tier 1 Leverage Capital Ratio |
7.64% |
5.00% |
$76,948 |
| Tier 1 Risk-Based Capital Ratio |
10.30% |
6.00% |
92,891 |
| Total Risk-Based Capital Ratio |
12.57% |
10.00% |
55,473 |
| Tangible Common Equity To Tangible
Assets |
3.92% |
N/A |
N/A |
| Tangible Common Equity Per Common Share |
$ 3.70 |
N/A |
N/A |
The Company has developed a plan to strengthen all of its
capital ratios which it expects to implement in the very near
future.
STATEMENT OF OPERATIONS
Net interest Income and Margin
Net interest income before provision for loan losses totaled
$29.3 million in the first quarter of 2011, an increase of 11.5%
from $26.3 million in the fourth quarter of 2010, and an increase
of 2.6% from $28.6 million in the first quarter of 2010. The
increase in net interest income on a linked quarter basis was
attributable to both an increase in interest income and a decline
in interest expense. Compared to the same quarter of previous year,
interest income declined 13.7% from $41.3 million to $35.6
million. The decline in interest income from the first quarter
of 2010 is attributable to the reduction in average earning
assets.
Interest expense declined to $6.3 million for the first quarter
of 2011, a 20.4% reduction from $8.0 million in the fourth quarter
of 2010 and a 50.3% decline from $12.7 million in the first quarter
of 2010. The decline in interest expense reflects the
improvement in the deposit mix, reduction in the cost of funds, and
a reduction in deposits over the past year. Interest expense
on deposits decreased to $5.1 million, a 24.4% and 54.3% reduction
compared to the fourth quarter of 2010 and the first quarter of
2010, respectively.
Net interest margin was 4.53% in the first quarter of 2011,
compared to 3.72% in the fourth quarter of 2010 and 3.65% in the
first quarter of 2010. The increase in net interest margin
from the previous quarter is attributable to a decline in funding
costs and a lower level of interest reversals on non-accrual
loans. On a year-over-year basis, net interest margin
increased due to the continued decline in the cost of funds. Cost
of funds declined to 0.88% in the first quarter of 2011 from 1.04%
in the fourth quarter of 2010 and 1.55% in the first quarter of
2010.
Non-Interest Income
Non-interest income was $8.7 million in the first quarter of
2011, compared to $6.1 million for the previous quarter and $7.3
million for the first quarter of 2010. The increase from both
the prior quarter and the prior year was attributable to an
increase in gain on sale of loans. A portion of the increase in
gain on sale of loans during the first quarter of 2011 was
attributable to a change in the treatment of SBA loan sale
transactions. During the first quarter of 2011, the Company
originated $48.5 million in SBA loans, compared to SBA loan
originations of $47.7 million in the fourth quarter of 2010.
Non-Interest Expense
Total non-interest expense was $17.5 million in the first
quarter of 2011, compared with $19.7 million in the prior quarter
and $14.2 million for the first quarter of 2010. During the
first quarter of 2011, the Company incurred approximately $450,000
in severance expense related to the elimination of 20 positions, as
part of a restructuring initiative to enhance efficiencies. The
staff reduction and other expense reduction measures are expected
to result in annual savings of $2.6 million.
The decrease in non-interest expense compared to the prior
quarter was primarily attributable to a reduction in OREO-related
expenses and expense related to low income housing tax credit
investments. The increase in non-interest expense from the
first quarter of 2010 was primarily attributable to an increase in
salaries and benefits expense due to severance payments and
OREO-related expenses.
Deferred Tax Asset & Effective Tax Rate
During the first quarter of 2011, the Company reviewed its
deferred tax asset. Due to a decline in income for the past two
quarters, the Company's cumulative three-year historical income was
reduced to where a valuation allowance on the deferred tax assets
was required in the first quarter of 2011. As a result, the Company
recorded net tax expense of $38.1 million to reflect the creation
of a valuation allowance on its deferred tax asset. Based on its
current business plan, management believes that its future level of
profitability will exceed projections utilized for the purpose of
evaluating the deferred tax asset.
The effective tax benefit rate excluding the tax expense of
$38.1 million that resulted from the deferred tax valuation
allowance, for the first quarter of 2011 was 46.2%, compared to
44.5% for the fourth quarter of 2010. The effective tax rate for
the first quarter of 2010 was 28.8%. The tax benefits relating to
municipal investments, low income housing tax credits, and other
state sponsored tax credit programs reduced the effective tax rates
during the first quarter of 2010, while the same permanent
differences have increased the tax benefit rates during the first
quarter of 2011 and fourth quarter of 2010.
CONFERENCE CALL
Management will host its quarterly conference call on April 26,
2011, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are
invited to participate in the call by dialing 866-804-6929
(domestic number) or857-350-1675 (international number) and
entering passcode 28610857.
COMPANY INFORMATION
Headquartered in Los Angeles, Wilshire State Bank operates 24
branch offices in California, Texas, New Jersey and New York, and
six loan production offices in Dallas, Houston, Atlanta, Denver,
Annandale, Virginia, and Fort Lee, New Jersey, and is an SBA
preferred lender nationwide. Wilshire State Bank is a community
bank with a focus on commercial real estate lending and general
commercial banking, with its primary market encompassing the
multi-ethnic populations of the Los Angeles Metropolitan area.
Wilshire Bancorp's strategic goals include increasing shareholder
and franchise value by continuing to grow its multi-ethnic banking
business and expanding its geographic reach to other similar
markets with strong levels of small business activity. Visit us at
www.wilshirebank.com.
FORWARD-LOOKING STATEMENTS
Statements concerning future performance, events, or any other
guidance on future periods constitute forward-looking statements
that are subject to a number of risks and uncertainties that might
cause actual results to differ materially from stated expectations.
Specific factors include, but are not limited to, loan production
and sales, credit quality, the ability to expand net interest
margin, the ability to continue to attract low-cost deposits,
success of expansion efforts, competition in the marketplace and
general economic conditions. The financial information contained in
this release should be read in conjunction with the consolidated
financial statements and notes included in Wilshire Bancorp's most
recent reports on Form 10-K and Form 10-Q, as filed with the
Securities and Exchange Commission, as they may be amended from
time to time. Results of operations for the most recent quarter are
not necessarily indicative of operating results for any future
periods. Any projections in this release are based on limited
information currently available to management and are subject to
change. Since management will only provide guidance at certain
points during the year, Wilshire Bancorp will not necessarily
update the information. Such information speaks only as of the date
of this release. Additional information on these and other factors
that could affect financial results are included in filings by
Wilshire Bancorp with the Securities and Exchange Commission.
| |
| CONSOLIDATED BALANCE
SHEET |
| (dollars in thousands) (unaudited) |
March 31, |
December 31, |
Three Month |
March 31, |
One Year |
| |
2011 |
2010 |
Change |
2010 |
Change |
| ASSETS: |
|
|
|
|
|
| Cash and Due from Banks |
$68,827 |
$68,530 |
0% |
$214,970 |
-68% |
| Federal Funds Sold and Other Cash
Equivalents |
5 |
130,005 |
-100% |
30,018 |
-100% |
| Total Cash and Cash
Equivalents |
68,832 |
198,535 |
-65% |
244,988 |
-72% |
| |
|
|
|
|
|
| Investment Securities Available For Sale |
340,812 |
316,623 |
8% |
687,716 |
-50% |
| Investment Securities Held To Maturity |
80 |
85 |
-6% |
105 |
-24% |
| Total Investment
Securities |
340,892 |
316,708 |
8% |
687,821 |
-50% |
| |
|
|
|
|
|
| Loans: |
|
|
|
|
|
| |
|
|
|
|
|
| Loans Held For Sale |
136,769 |
17,098 |
700% |
43,501 |
214% |
| |
|
|
|
|
|
| Real Estate Construction |
73,879 |
71,596 |
3% |
47,364 |
56% |
| Residential Real Estate |
91,842 |
92,901 |
-1% |
92,874 |
-1% |
| Commercial Real Estate |
1,656,495 |
1,804,731 |
-8% |
1,845,374 |
-10% |
| Commercial and Industrial |
310,225 |
324,627 |
-4% |
372,407 |
-17% |
| Consumer |
14,675 |
15,671 |
-6% |
16,304 |
-10% |
| Total Loans |
2,147,116 |
2,309,526 |
-7% |
2,374,323 |
-10% |
| Allowance For Loan Losses |
(114,842) |
(110,953) |
4% |
(79,576) |
44% |
| Loans, Net of Allowance for Loan
Losses |
2,032,274 |
2,198,573 |
-8% |
2,294,747 |
-11% |
| |
|
|
|
|
|
| Accrued Interest Receivable |
9,829 |
10,581 |
-7% |
15,214 |
-35% |
| Due from Customers on Acceptances |
169 |
368 |
-54% |
1,006 |
-83% |
| Other Real Estate Owned |
8,512 |
14,983 |
-43% |
4,860 |
75% |
| Premises and Equipment |
13,555 |
13,330 |
2% |
13,602 |
0% |
| Federal Home Loan Bank (FHLB) Stock, at
Cost |
17,796 |
18,531 |
-4% |
21,040 |
-15% |
| Cash Surrender Value of Life Insurance |
18,812 |
18,663 |
1% |
18,197 |
3% |
| Investment in affordable housing
partnerships |
34,781 |
28,186 |
23% |
25,102 |
39% |
| Deferred Income Taxes |
19,112 |
46,357 |
-59% |
20,198 |
-5% |
| Servicing Assets |
7,664 |
7,331 |
5% |
6,715 |
14% |
| Goodwill |
6,675 |
6,675 |
0% |
6,675 |
0% |
| FDIC Indemnification |
26,673 |
28,525 |
-6% |
33,329 |
-20% |
| Other Assets |
46,756 |
46,081 |
1% |
22,292 |
110% |
| TOTAL ASSETS |
$2,789,101 |
$2,970,525 |
-6% |
$3,459,287 |
-19% |
| |
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS'
EQUITY: |
|
|
|
|
|
| LIABILITIES: |
|
|
|
|
|
| Non-interest Bearing Demand Deposits |
$484,402 |
$467,067 |
4% |
$414,023 |
17% |
| Savings and Interest Checking |
109,399 |
106,115 |
3% |
97,170 |
13% |
| Money Market Deposits |
622,078 |
669,486 |
-7% |
979,454 |
-36% |
| Time Deposits in denomination of $100,000 or
more |
670,686 |
699,503 |
-4% |
746,866 |
-10% |
| Other Time Deposits |
383,462 |
518,769 |
-26% |
687,532 |
-44% |
| Total Deposits |
2,270,027 |
2,460,940 |
-8% |
2,925,045 |
-22% |
| |
|
|
|
|
|
| FHLB borrowings and Federal Funds
Purchased |
215,000 |
158,011 |
36% |
142,487 |
51% |
| Acceptance Outstanding |
169 |
368 |
-54% |
1,006 |
-83% |
| Junior Subordinated Debentures |
87,321 |
87,321 |
0% |
87,321 |
0% |
| Accrued Interest Payable |
4,049 |
4,092 |
-1% |
5,954 |
-32% |
| Other Liabilities |
34,783 |
30,631 |
14% |
26,779 |
30% |
| Total Liabilities |
2,611,349 |
2,741,363 |
-5% |
3,188,592 |
-18% |
| |
|
|
|
|
|
| STOCKHOLDERS'
EQUITY: |
|
|
|
|
|
| Preferred Stock |
60,584 |
60,450 |
0% |
60,058 |
1% |
| Common Stock |
55,655 |
55,601 |
0% |
55,118 |
1% |
| Retained Earnings |
58,994 |
111,099 |
-47% |
151,895 |
-61% |
| Accumulated Other Comprehensive Income |
2,519 |
2,012 |
25% |
3,624 |
-30% |
| Total Stockholders'
Equity |
177,752 |
229,162 |
-22% |
270,695 |
-34% |
| TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY |
$2,789,101 |
$2,970,525 |
-6% |
$3,459,287 |
-19% |
| |
| |
| CONSOLIDATED STATEMENT OF
OPERATIONS |
| (dollars in thousands, except per
share data) (unaudited) |
| |
Quarter Ended |
|
Quarter Ended |
|
| |
March 31, |
December 31, |
Three Month |
March 31, |
One Year |
| |
2011 |
2010 |
% Change |
2010 |
% Change |
| |
|
|
|
|
|
| INTEREST INCOME |
|
|
|
|
|
| Interest and Fees on Loans |
$33,462 |
$32,193 |
4% |
$35,304 |
-5% |
| Interest on Investment Securities |
1,983 |
1,551 |
28% |
5,615 |
-65% |
| Interest on Federal Funds Sold |
179 |
476 |
-62% |
382 |
-53% |
| Total Interest Income |
35,624 |
34,220 |
4% |
41,301 |
-14% |
| |
|
|
|
|
|
| INTEREST EXPENSE |
|
|
|
|
|
| Deposits |
5,110 |
6,758 |
-24% |
11,174 |
-54% |
| FHLB Advances and Other Borrowings |
1,219 |
1,194 |
2% |
1,569 |
-22% |
| Total Interest Expense |
6,329 |
7,952 |
-20% |
12,743 |
-50% |
| |
|
|
|
|
|
| Net Interest Income Before Provision for
Losses on Loans and Loan Commitments |
29,295 |
26,268 |
12% |
28,558 |
3% |
| Provision for Losses on Loans and Loan
Commitments |
44,800 |
83,600 |
-46% |
17,000 |
164% |
| Net Interest (Loss) Income After
Provision for Losses on Loans and Loan Commitments |
(15,505) |
(57,332) |
-73% |
11,558 |
-234% |
| |
|
|
|
|
|
| NONINTEREST INCOME |
|
|
|
|
|
| Service Charges on Deposits |
3,080 |
3,034 |
2% |
3,224 |
-4% |
| Gain on Sales of Loans |
3,592 |
2,059 |
74% |
36 |
9878% |
| Gain on Sale of Investment
Securities |
36 |
40 |
-10% |
2,484 |
-99% |
| Other |
1,968 |
972 |
102% |
1,556 |
26% |
| Total Noninterest
Income |
8,676 |
6,105 |
42% |
7,300 |
19% |
| |
|
|
|
|
|
| NONINTEREST EXPENSES |
|
|
|
|
|
| Salaries and Employee Benefits |
7,817 |
7,217 |
8% |
7,115 |
10% |
| Occupancy & Equipment |
1,980 |
1,936 |
2% |
2,181 |
-9% |
| Data Processing |
712 |
692 |
3% |
637 |
12% |
| Other |
6,967 |
9,838 |
-29% |
4,272 |
63% |
| Total Noninterest
Expenses |
17,476 |
19,683 |
-11% |
14,205 |
23% |
| |
|
|
|
|
|
| (Loss) Income Before Income Taxes |
(24,305) |
(70,910) |
-66% |
4,653 |
-622% |
| Income Taxes Provision (Benefit) |
26,888 |
(31,521) |
-185% |
1,338 |
1910% |
| NET (LOSS) INCOME |
$ (51,193) |
$ (39,389) |
30% |
$ 3,315 |
-1644% |
| |
|
|
|
|
|
| Preferred Stock Cash Dividend and
Accretion of Preferred Stock Discount |
912 |
910 |
0% |
903 |
1% |
| NET (LOSS) INCOME AVAILABLE TO COMMON
SHAREHOLDERS |
$(52,105) |
$(40,299) |
29% |
$2,412 |
-2260% |
| |
|
|
|
|
|
| PER COMMON SHARE
INFORMATION |
|
|
|
|
|
| Basic (Loss) Earnings Per Common
Share |
$(1.77) |
$(1.37) |
29% |
$0.08 |
-2261% |
| Diluted (Loss) Earnings Per Common
Share |
$(1.77) |
$(1.37) |
29% |
$0.08 |
-2261% |
| |
|
|
|
|
|
| WEIGHTED-AVERAGE COMMON SHARES
OUTSTANDING: |
|
|
|
|
|
| Basic |
29,476,288 |
29,486,635 |
|
29,484,006 |
|
| Diluted |
29,476,288 |
29,486,635 |
|
29,484,006 |
|
| |
| |
| SUMMARY OF FINANCIAL
DATA |
| (dollars in thousands, except per
share data) (unaudited) |
| |
| |
Quarter Ended |
|
| AVERAGE BALANCES |
March 31, 2011 |
|
December 31, 2010 |
|
March 31, 2010 |
|
| |
|
|
|
|
|
|
| Average Assets |
$ 2,921,915 |
|
$ 3,135,483 |
|
$ 3,417,633 |
|
| Average Equity |
231,622 |
|
272,003 |
|
273,293 |
|
| Average Net Loans |
2,218,079 |
|
2,332,929 |
|
2,359,522 |
|
| Average Deposits |
2,314,733 |
|
2,594,300 |
|
2,886,514 |
|
| Average Time Deposits in denomination of
$100,000 or more |
670,542 |
|
717,362 |
|
768,882 |
|
| Average Interest Earning Assets |
2,610,600 |
|
2,846,537 |
|
3,155,853 |
|
| |
|
|
|
|
|
|
| |
Quarter Ended |
|
| PROFITABILITY |
March 31, 2011 |
|
December 31, 2010 |
|
March 31, 2010 |
|
| |
|
|
|
|
|
|
| Annualized Return on Average Assets |
-7.01% |
|
-5.02% |
|
0.39% |
|
| Annualized Return on Average Equity |
-88.41% |
|
-57.92% |
|
4.85% |
|
| Efficiency Ratio |
46.02% |
|
60.80% |
|
39.61% |
|
| Annualized Operating Expense/Average
Assets |
2.39% |
|
2.51% |
|
1.66% |
|
| Annualized Net Interest Margin |
4.53% |
|
3.72% |
|
3.65% |
|
| |
|
|
|
|
|
|
| |
As Of |
| DEPOSIT
COMPOSITION |
March 31, 2011 |
Cost of Funds |
December 31, 2010 |
Cost of Funds |
March 31, 2010 |
Cost of Funds |
| |
|
|
|
|
|
|
| Noninterest Bearing Demand Deposits |
21.3% |
0.00% |
19.0% |
0.00% |
14.2% |
0.00% |
| Savings & Interest Checking |
4.8% |
2.26% |
4.3% |
2.34% |
3.3% |
2.55% |
| Money Market Deposits |
27.4% |
0.87% |
27.2% |
0.91% |
33.5% |
1.68% |
| Time Deposits of $100,000 or More |
29.5% |
1.01% |
28.4% |
1.17% |
25.5% |
1.58% |
| Other Time Deposits |
16.9% |
1.30% |
21.1% |
1.66% |
23.5% |
2.07% |
| Total Deposits |
100.0% |
0.88% |
100.0% |
1.04% |
100.0% |
1.55% |
| |
|
|
|
|
|
|
| |
As Of |
| CAPITAL RATIOS |
March 31, 2011 |
|
December 31, 2010 |
|
March 31, 2010 |
|
| |
|
|
|
|
|
|
| Tier 1 Leverage Ratio |
7.64% |
|
9.18% |
|
9.78% |
|
| Tier 1 Risk-Based Capital Ratio |
10.30% |
|
12.61% |
|
14.38% |
|
| Total Risk-Based Capital Ratio |
12.57% |
|
14.00% |
|
15.83% |
|
| Total Shareholders' Equity |
$177,752 |
|
$229,162 |
|
$270,695 |
|
| Book Value Per Common Share |
$3.98 |
|
$5.72 |
|
$7.16 |
|
| Tangible Common Equity Per Common Share
* |
$3.70 |
|
$5.44 |
|
$6.87 |
|
| Tangible Common Equity to Tangible Assets
** |
3.92% |
|
5.41% |
|
5.86% |
|
| |
| * Tangible common equity excludes
goodwill, other intangible assets, and TARP preferred
stock |
| ** Tangible assets excludes
goodwill and intangible assets |
| |
|
| SUMMARY OF FINANCIAL
DATA |
|
| (dollars in thousands, except per
share data) (unaudited) |
|
| |
|
| Reconciliation of GAAP
financial measures to non-GAAP financial measures: |
|
| |
|
| |
March 31, 2011 |
December 31, 2010 |
March 31, 2010 |
| |
|
|
|
| Total stockholders' equity |
$177,752 |
$229,162 |
$270,695 |
| Preferred stock, net of discount |
(60,584) |
(60,450) |
(60,058) |
| Goodwill and other intangible assets,
net |
(8,239) |
(8,320) |
(8,596) |
| Tangible common equity |
$108,929 |
$160,392 |
$202,041 |
| |
|
|
|
| Total assets |
$2,789,101 |
$2,970,525 |
$3,459,287 |
| Goodwill and other intangible assets,
net |
(8,239) |
(8,320) |
(8,596) |
| Tangible assets |
$2,780,862 |
$2,962,205 |
$3,450,691 |
| |
|
|
|
| Common shares outstanding |
29,471,714 |
29,477,778 |
29,485,637 |
| |
|
|
|
| |
| ALLOWANCE FOR LOAN
LOSSES |
|
| (dollars in thousands) (unaudited) |
Quarter Ended |
| |
March 31, 2011 |
December 31, 2010 |
September 30, 2010 |
June 30, 2010 |
March 31, 2010 |
| |
|
|
|
|
|
| Balance at Beginning of Period |
$ 110,953 |
$ 99,020 |
$ 91,419 |
$ 79,576 |
$ 62,130 |
| Provision for Losses on Loans |
44,800 |
82,600 |
17,999 |
31,269 |
16,930 |
| FDIC Indemnification |
-- |
-- |
2,953 |
(3,140) |
5,831 |
| Recoveries on loans previously
charged-off |
786 |
1,235 |
991 |
872 |
512 |
| Less Charge-offs |
(41,697) |
(71,902) |
(14,342) |
(17,158) |
(5,827) |
| Balance at End of Period |
$ 114,842 |
$ 110,953 |
$ 99,020 |
$ 91,419 |
$ 79,576 |
| |
|
|
|
|
|
| Net Loan Charge-offs/Average Total Loans |
1.84% |
3.03% |
0.56% |
0.67% |
0.22% |
| Charge-offs/Average Total Loans |
1.88% |
3.08% |
0.60% |
0.70% |
0.24% |
| Allowance for Loan Losses/Gross Loans |
5.02% |
4.76% |
4.04% |
3.72% |
3.29% |
| Allowance for Loan Losses/Legacy Wilshire
Loans |
5.50% |
5.23% |
4.44% |
4.11% |
3.66% |
| Allowance for Loan Losses/Non-accrual
Loans |
143.31% |
155.76% |
129.70% |
109.99% |
75.77% |
| Allowance for Loan Losses/Legacy Non-accrual
Loans |
185.02% |
182.24% |
157.80% |
142.21% |
95.74% |
| Allowance for Loan Losses/Non-performing
Loans |
143.31% |
155.76% |
129.18% |
109.99% |
75.77% |
| Allowance for Loan Losses/Legacy
Non-performing Loans |
185.02% |
182.24% |
157.04% |
142.21% |
95.74% |
| Allowance for Loan Losses/Non-performing
Assets |
129.55% |
128.69% |
106.88% |
101.97% |
72.42% |
| Allowance for Loan Losses/Legacy
Non-performing Assets |
164.68% |
151.35% |
136.44% |
133.20% |
92.26% |
| |
|
|
|
|
|
| |
|
|
|
|
|
| NON-PERFORMING ASSETS |
|
|
|
|
|
| (net of SBA guaranteed portions) |
As Of |
| |
March 31, 2011 |
December 31, 2010 |
September 30, 2010 |
June 30, 2010 |
March 31, 2010 |
| Nonaccrual Loans: |
|
|
|
|
|
| Non-covered Loans |
$62,069 |
$60,882 |
$62,749 |
$64,285 |
$83,115 |
| Covered Loans |
18,064 |
10,350 |
13,599 |
18,831 |
21,909 |
| Total |
80,133 |
71,232 |
76,348 |
83,116 |
105,024 |
| |
|
|
|
|
|
| Loans 90 days or more past due and still
accruing: |
|
|
|
|
|
| Non-covered Loans |
-- |
-- |
304 |
1 |
-- |
| Covered Loans |
-- |
-- |
-- |
-- |
-- |
| Total |
-- |
-- |
304 |
1 |
-- |
| |
|
|
|
|
|
| Total Nonperforming Loans: |
|
|
|
|
|
| Non-covered Loans |
62,069 |
60,882 |
63,053 |
64,286 |
83,115 |
| Covered Loans |
18,064 |
10,350 |
13,599 |
18,831 |
21,909 |
| Total |
80,133 |
71,232 |
76,652 |
83,117 |
105,024 |
| |
|
|
|
|
|
| OREO and Repossessed Vehicles: |
|
|
|
|
|
| Non-covered Loans |
7,668 |
12,429 |
9,519 |
4,346 |
3,136 |
| Covered Loans |
844 |
2,554 |
6,477 |
2,194 |
1,723 |
| Total |
8,512 |
14,983 |
15,996 |
6,540 |
4,859 |
| |
|
|
|
|
|
| Total Nonperforming Assets: |
|
|
|
|
|
| Non-covered Loans |
69,737 |
73,311 |
72,572 |
68,632 |
86,251 |
| Covered Loans |
18,908 |
12,904 |
20,076 |
21,025 |
23,632 |
| Total |
$88,645 |
$86,215 |
$92,648 |
$89,657 |
$109,883 |
| |
|
|
|
|
|
| Total Nonperforming Loans/Gross Loans |
3.50% |
3.06% |
3.13% |
3.38% |
4.34% |
| Total Legacy Nonperforming Loans/Legacy Gross
Loans |
2.97% |
2.87% |
2.83% |
2.89% |
3.83% |
| |
|
|
|
|
|
| Total Nonperforming Assets/Total Assets |
3.18% |
2.90% |
2.87% |
2.61% |
3.18% |
| Total Legacy Nonperforming Assets/Total
Assets |
2.50% |
2.47% |
2.24% |
2.00% |
2.49% |
| |
| |
| PERFORMING TROUBLED DEBT
RESTRUCTURED LOANS (Dollars In Thousands)(unaudited) |
| (net of SBA guaranteed
portions) |
| |
| |
Quarter Ended |
| Non-Covered Loans |
Mar 31, 2011 |
Dec 31, 2010 |
Sep 30, 2010 |
Jun 30, 2010 |
Mar 31, 2010 |
| |
|
|
|
|
|
| Construction |
$ -- |
$ -- |
$ -- |
$ 2,654 |
$ -- |
| Real Estate Secured |
31,540 |
36,187 |
27,215 |
25,015 |
46,024 |
| Commercial & Industrial |
4,117 |
3,574 |
4,741 |
4,241 |
474 |
| Consumer |
-- |
-- |
57 |
81 |
-- |
| Total Non-Covered TDR Loans |
$ 35,657 |
$ 39,761 |
$ 32,013 |
$ 31,991 |
$ 46,498 |
| |
|
|
|
|
|
| Covered Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Real Estate Secured |
$ 7,676 |
$ 7,115 |
$ 1,331 |
$ 3,449 |
$ 8,135 |
| Commercial & Industrial |
1,844 |
1,870 |
1,475 |
1,569 |
-- |
| Total Covered TDR Loans |
$ 9,520 |
$ 8,985 |
$ 2,806 |
$ 5,018 |
$ 8,135 |
| |
|
|
|
|
|
| Total Performing TDRs
Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Construction |
$ -- |
$ -- |
$ -- |
$ 2,654 |
$ -- |
| Real Estate Secured |
39,216 |
43,302 |
28,546 |
28,464 |
54,159 |
| Commercial & Industrial |
5,961 |
5,444 |
6,216 |
5,810 |
474 |
| Consumer |
-- |
-- |
57 |
81 |
-- |
| Total Performing TDR Loans |
$ 45,177 |
$ 48,746 |
$ 34,819 |
$ 37,009 |
$ 54,633 |
| |
|
|
|
|
|
| |
|
|
|
|
|
| LOAN ORIGINATION
AMOUNT |
Quarter Ended |
| (Dollars In Thousands) |
Mar 31, 2011 |
Dec 31, 2010 |
Sep 30, 2010 |
Jun 30, 2010 |
Mar 31, 2010 |
| |
|
|
|
|
|
| Total new loan origination amount,
excluding renewal. |
$ 120,037 |
$ 169,051 |
$ 112,911 |
$ 186,121 |
$ 87,288 |
| SBA new loan origination amount,
excluding renewal. |
$ 48,459 |
$ 47,735 |
$ 17,613 |
$ 32,630 |
$ 23,471 |
| |
|
|
|
|
|
| |
|
|
|
|
|
| ALLOWANCE FOR OFF-BALANCE SHEET
ITEMS |
Quarter Ended |
| (Dollars In Thousands) |
Mar 31, 2011 |
Mar 31, 2010 |
| |
|
|
| Balance at beginning of period |
$ 3,926 |
$ 2,515 |
| Provision for losses on off-balance
sheet items |
-- |
70 |
| Balance at end of period |
$ 3,926 |
$ 2,585 |
| |
| |
| WILSHIRE BANCORP, INC.
AND SUBSIDIARIES |
| AVERAGE BALANCES,
AVERAGE YIELDS EARNED AND AVERAGE RATES PAID |
| (dollars in thousands)
(unaudited) |
| |
| |
For the Quarter
Ended |
| |
March 31,
2011 |
December 31,
2010 |
March 31,
2010 |
| |
|
|
|
| |
Average |
Interest |
Average |
Average |
Interest |
Average |
Average |
Interest |
Average |
| |
Balance |
Income/ |
Yield/ |
Balance |
Income/ |
Yield/ |
Balance |
Income/ |
Yield/ |
| |
|
Expense |
Rate |
|
Expense |
Rate |
|
Expense |
Rate |
| INTEREST EARNING
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Real Estate Loans |
$1,995,191 |
$27,656 |
5.54% |
$2,072,543 |
$26,919 |
5.20% |
$2,030,514 |
$29,053 |
5.72% |
| Commercial Loans |
327,887 |
4,592 |
5.60% |
346,987 |
4,435 |
5.11% |
382,589 |
5,308 |
5.55% |
| Consumer Loans |
15,157 |
121 |
3.18% |
16,084 |
138 |
3.43% |
16,474 |
180 |
4.38% |
| Total Gross Loans |
2,338,235 |
32,369 |
5.54% |
2,435,614 |
31,492 |
5.17% |
2,429,577 |
34,541 |
5.69% |
| |
|
|
|
|
|
|
|
|
|
| Loan Fees toward Yield |
|
1,093 |
|
|
701 |
|
|
763 |
|
| Allowance for Loan Losses & Unearned
Income |
(120,156) |
|
|
(102,693) |
|
|
(70,055) |
|
|
| Net Loans |
2,218,079 |
33,462 |
6.03% |
2,332,921 |
32,193 |
5.52% |
2,359,522 |
35,304 |
5.98% |
| |
|
|
|
|
|
|
|
|
|
| INVESTMENT SECURITIES
AND |
|
|
|
|
|
|
|
|
|
| OTHER INTEREST-EARNING
ASSETS: |
|
|
|
|
|
|
|
|
|
| Investment Securities* |
334,694 |
1,983 |
2.66% |
353,983 |
1,551 |
2.02% |
665,366 |
5,615 |
3.52% |
| Federal Funds Sold |
57,827 |
179 |
1.24% |
159,633 |
476 |
1.19% |
130,965 |
382 |
1.17% |
| Total Investment Securities
and |
|
|
|
|
|
|
|
|
|
| Other Earning
Assets |
392,521 |
2,162 |
2.45% |
513,616 |
2,027 |
1.76% |
796,331 |
5,997 |
3.13% |
| |
|
|
|
|
|
|
|
|
|
| TOTAL INTEREST-EARNING
ASSETS |
$2,610,600 |
$35,624 |
5.49% |
$2,846,537 |
$34,220 |
4.84% |
$3,155,853 |
$41,301 |
5.27% |
| |
|
|
|
|
|
|
|
|
|
| INTEREST BEARING
LIABILITIES |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| INTEREST-BEARING
DEPOSITS: |
|
|
|
|
|
|
|
|
|
| Money Market |
$644,249 |
$1,408 |
0.87% |
$738,538 |
$1,684 |
0.91% |
$956,035 |
$4,023 |
1.68% |
| NOW |
24,738 |
23 |
0.38% |
22,217 |
19 |
0.34% |
22,481 |
29 |
0.52% |
| Savings |
85,287 |
598 |
2.81% |
81,267 |
587 |
2.89% |
74,052 |
586 |
3.17% |
| Time Deposits of $100,000 or More |
670,542 |
1,687 |
1.01% |
717,362 |
2,106 |
1.17% |
768,882 |
3,047 |
1.58% |
| Other Time Deposits |
428,815 |
1,394 |
1.30% |
569,725 |
2,362 |
1.66% |
675,764 |
3,489 |
2.07% |
| Total Interest Bearing
Deposits |
1,853,631 |
5,110 |
1.10% |
2,129,109 |
6,758 |
1.27% |
2,497,214 |
11,174 |
1.79% |
| |
|
|
|
|
|
|
|
|
|
| BORROWINGS: |
|
|
|
|
|
|
|
|
|
| FHLB Advances and Other Borrowings |
250,964 |
730 |
1.16% |
144,145 |
697 |
1.93% |
148,000 |
920 |
2.49% |
| Junior Subordinated Debentures |
87,321 |
489 |
2.24% |
87,321 |
497 |
2.28% |
87,321 |
649 |
2.97% |
| Total Borrowings |
338,285 |
1,219 |
1.44% |
231,466 |
1,194 |
2.06% |
235,321 |
1,569 |
2.67% |
| |
|
|
|
|
|
|
|
|
|
| TOTAL INTEREST BEARING
LIABILITIES |
$2,191,916 |
$6,329 |
1.15% |
$2,360,575 |
$7,952 |
1.35% |
$2,732,535 |
$12,743 |
1.87% |
| |
|
|
|
|
|
|
|
|
|
| NET INTEREST INCOME |
|
$29,295 |
|
|
$26,268 |
|
|
$28,558 |
|
| |
|
|
|
|
|
|
|
|
|
| NET INTEREST SPREAD |
|
|
4.34% |
|
|
3.49% |
|
|
3.40% |
| |
|
|
|
|
|
|
|
|
|
| NET INTEREST MARGIN |
|
|
4.53% |
|
|
3.72% |
|
|
3.65% |
| |
| * Tax equivalent ratios for
investment securities |
CONTACT: WILSHIRE BANCORP, INC.
Alex Ko, EVP & CFO
(213) 427-6560
www.wilshirebank.com
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