Preliminary Q2 2011
Summary:
- Preliminary net loss available to common shareholders
of $4.6 million, or ($0.09) per share, includes a preliminary
estimated non-cash goodwill impairment charge of $6.7 million,
which represents the entire remaining balance of
goodwill
- Excluding estimated non-cash goodwill impairment
charge, preliminary net income available to common shareholders of
$2.1 million or $0.04 per share
- Substantial improvement in asset quality including a
reduction in non-performing loans, delinquent loans, TDR loans,
impaired loans, and charge-offs
- Successful capital raise of $109 million in common
stock (net of underwriting fees)
- All capital ratios significantly improved from prior
quarter
Wilshire Bancorp, Inc. (Nasdaq:WIBC), the holding company ("the
Company") for Wilshire State Bank ("the Bank"), today reported that
it expects a net loss available to common shareholders of $4.6
million, or ($0.09) per basic and diluted share, for the quarter
ended June 30, 2011, which includes a preliminary estimated
non-cash goodwill impairment charge of $6.7 million. This compares
to a net loss available to common shareholders of $4.6 million, or
($0.15) per basic and diluted share, for the same period of the
prior year, and a net loss available to common shareholders of
$52.1 million, or ($1.77) per basic and diluted share, in the first
quarter of 2011. All financial results reported in this press
release for the quarter and/or six months ended June 30, 2011 are
preliminary and could change depending on finalization of the
actual impairment charge to goodwill (please see discussion of
goodwill impairment charge below).
Excluding the preliminary non-cash goodwill impairment charge,
the Company expects to report net income available to common
shareholders of $2.1 million, or $0.04 per fully diluted share, for
the second quarter of 2011. The expected improvement in financial
results, net of the preliminary expected charge to goodwill,
compared to the first quarter of 2011 is primarily attributable to
an improvement in asset quality and a reduction in credit costs.
The results discussed in this paragraph reflect the use of non-GAAP
financial metrics; a reconciliation to GAAP financial metrics is
included at the end of this release.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp,
said, "We are very pleased with the substantial improvement in our
financial performance in the second quarter of 2011, which reflects
the continued strength of our earnings power along with the results
of our aggressive actions to resolve problem loans and reduce our
credit costs. We are executing well on the plan we have outlined to
return Wilshire Bancorp to its historical level of profitability.
During the second quarter, we achieved two key milestones in our
plan: 1) strengthening our capital position through a $109 million
stock offering; and 2) significantly reducing our problem
loans.
"We also saw encouraging signs of stability in our loan
portfolio, as evidenced by reduced inflow into delinquent and
non-accrual loans during the second quarter. Given a continuation
of the positive trends in our asset quality, we believe that our
credit costs will remain manageable and we can steadily increase
our profitability in the foreseeable future," said Mr. Yoo.
Goodwill Impairment
As a result of the decline in its stock price and market
capitalization, Wilshire Bancorp has determined that it is probable
that the goodwill related to the acquisition of the Company's East
Coast branches has been impaired. The Company is currently
implementing the second step of the analysis to determine the
extent to which the goodwill is impaired. The Company has recorded
a preliminary non-cash goodwill impairment charge in the amount of
$6.7 million, which represents a write-down of all of the goodwill
currently carried on the balance sheet. Once the second step of the
goodwill impairment analysis is completed, the Company may
determine that no impairment or a charge of less than $6.7 million
is required. The Company expects to complete the goodwill
impairment test by the time it files its quarterly report on Form
10-Q for the quarter ended June 30, 2011.
The preliminary non-cash goodwill impairment charge has no
significant effect on the Company's liquidity, operations, or
capital ratios.
STATEMENT OF OPERATIONS
Net interest Income and Margin
Net interest income before provision for loan losses totaled
$27.3 million in the second quarter of 2011, a decrease of 6.5%
from $29.2 million in the second quarter of 2010, and a decrease of
6.7% from $29.3 million in the first quarter of 2011. The decrease
in net interest income on a linked quarter basis was primarily
attributable to a decline in total loans as result of management's
plan to aggressively reduce problem loans, which was partially
offset by a reduction in interest expense.
Net interest margin was 4.42% in the second quarter of 2011,
compared to 3.72% in the second quarter of 2010 and 4.53% in the
first quarter of 2011. The decrease in net interest margin from the
previous quarter is primarily attributable to higher balances of
Federal Funds Sold, which resulted from funds that became available
through the capital raise and loan sales. As the Company utilizes
these funds through investment purchases and loan originations, the
negative impact to net interest margin will be reduced.
Net interest margin on a year to date basis increased to 4.46%
at June 30, 2011 from 3.69% for the same period of the previous
year. The increase in margin reflects a large decrease in the cost
of liabilities which decreased to 1.14% from 1.80% for the same
period.
Non-Interest Income
Total non-interest income declined to $4.1 million for the
quarter ending June 30, 2011 compared to $8.7 million for the
previous quarter and $9.9 million for the quarter ending June 30,
2010.
Net gain on sale of loans declined to a loss of $1.3 million for
the quarter ending June 30, 2011 compared to a $3.6 million gain
for the quarter ending March 31, 2011. The net loss on sale of
loans for the quarter ending June 30, 2011 consists of $4.6 million
in gains from SBA loan sales offset by a net loss of $5.9 million
from the sale of CRE loans. The $5.9 million loss on CRE loan sales
resulted from lower pricing received on loan sales compared to
previous markdowns on the loans held-for-sale for the first quarter
of 2011, which were marked down to their fair values at March 31,
2011.
Although overall deposits declined from the first to second
quarter of 2011, service charge on deposits accounts increased by
2% to $3.1 million. Other non-interest income totaled $2.2 million
for the second quarter of 2011, an increase from $2.0 million for
the first quarter of 2011 and $1.6 million for the second quarter
of 2010. The increase in other non-interest income was attributable
to an increase in loan fees for the second quarter of 2011,
compared to the previous quarter and the same quarter of the
previous year.
Non-Interest Expense
Total non-interest expense was $25.6 million in the second
quarter of 2011, compared with $17.5 million in the prior quarter
and $16.1 million for the second quarter of 2010. Total
non-interest expense for the second quarter of 2011 includes the
preliminary estimated $6.7 million non-cash goodwill impairment
charge previously discussed.
Total salaries and employee benefits decreased to $6.8 million
in the second quarter of 2011, from $7.8 million in the prior
quarter and $7.3 million in the second quarter of 2010. The
decrease is primarily due to the reduction in staff during the
first quarter of this year.
Other non-interest expenses for the second quarter of 2011
totaled $9.4 million, an increase of $2.4 million and $3.1 million
from the first quarter of 2011 and the second quarter of 2010,
respectively. This increase was largely attributable to $2.3
million in valuation allowance expenses related to the further
markdown of held-for-sale loans that were carried over from the
first to second quarter of 2011.
BALANCE SHEET
Total loans including loans held-for-sale totaled $2.08 billion
at June 30, 2011, compared to $2.28 billion at March 31, 2011. The
decrease was primarily due to $68.8 million in note sales, $14.2
million in charge-offs, and pay-downs during the second quarter of
2011. Loan originations for the second quarter of 2011 were
approximately $50.3 million (excluding SBA and residential mortgage
loans). This compares to total loan originations (excluding SBA and
residential mortgage loans) of $69.1 million during the first
quarter of 2011.
The Company originated $27.7 million in SBA loans during the
second quarter of 2011, compared to $48.5 million in the previous
quarter.SBA loan originations were elevated in the fourth quarter
of 2010 and first quarter of 2011 due to the implementation of the
Small Business Lending Program, in which SBA loan guarantees were
increased to 90% for certain loans. With the end of the program in
February 2011, the Company's SBA loan originations declined to
previous levels for the second quarter of 2011.
Loan Categories
| GROSS LOANS BY TYPE (Dollars
In Thousands) |
| |
Quarter Ended |
| Non-Covered Loans |
Jun 30, 2011 |
Mar 31, 2011 |
Dec 31, 2010 |
Sep 30, 2010 |
Jun 30, 2010 |
| |
|
|
|
|
|
| Construction |
$ 70,304 |
$ 74,538 |
$ 72,258 |
$ 70,808 |
$ 59,376 |
| Real Estate Secured |
1,548,559 |
1,725,298 |
1,757,328 |
1,832,726 |
1,830,387 |
| Commercial &
Industrial |
260,990 |
274,392 |
276,739 |
308,277 |
316,370 |
| Consumer |
15,350 |
14,587 |
15,574 |
16,937 |
18,265 |
| Total Non-Covered Gross
Loans |
$ 1,895,203 |
$ 2,088,815 |
$ 2,121,899 |
$ 2,228,748 |
$ 2,224,398 |
| |
|
|
|
|
|
| Covered Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Construction |
$ -- |
$ -- |
$ -- |
$ -- |
$ -- |
| Real Estate Secured |
154,020 |
154,655 |
159,699 |
166,490 |
179,124 |
| Commercial &
Industrial |
38,170 |
45,024 |
49,680 |
53,613 |
56,357 |
| Consumer |
96 |
104 |
111 |
125 |
150 |
| Total Covered Gross Loans |
$ 192,286 |
$ 199,783 |
$ 209,490 |
$ 220,228 |
$ 235,631 |
| |
|
|
|
|
|
| Total Gross Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Construction |
$ 70,304 |
$ 74,538 |
$ 72,258 |
$ 70,808 |
$ 59,376 |
| Real Estate Secured |
1,702,579 |
1,879,953 |
1,917,027 |
1,999,216 |
2,009,511 |
| Commercial &
Industrial |
299,160 |
319,416 |
326,419 |
361,890 |
372,727 |
| Consumer |
15,446 |
14,691 |
15,685 |
17,062 |
18,415 |
| Total Gross Loans |
$ 2,087,489 |
$ 2,288,598 |
$ 2,331,389 |
$ 2,448,976 |
$ 2,460,029 |
Total deposits were $2.15 billion at June 30, 2011, down from
$2.27 billion at March 31, 2011. The decline was primarily in
higher cost deposit accounts.
Total other real estate owned (OREOs) was $8.5 million at June
30, 2011, unchanged from $8.5 million at March 31,
2011. Outflow from OREO in the second quarter of 2011
consisted of 13 sold properties totaling approximately $5.8
million. Inflows to OREO in the second quarter of 2011 consisted of
12 properties totaling approximately $5.7 million.
CREDIT QUALITY
The Company's credit quality improved in the second quarter of
2011 with declines in net charge-offs, non-accrual loans, impaired
loans, and classified loans. As a result of the improved
credit quality, the Company's provision for loan losses declined to
$10.3 million in the second quarter of 2011, compared to $44.8
million in the prior quarter.
The allowance for loan losses was $111.0 million, or 5.32% of
gross loans, at June 30, 2011, compared to $114.8 million, or 5.02%
of gross loans, at March 31, 2011. The coverage ratio of
allowance for loan losses to non-performing assets was 128.4% at
June 30, 2011, compared with 129.6% at March 31, 2011. Allowance
coverage of legacy Wilshire loans (i.e. loans originated at
Wilshire as opposed to Mirae Bank) increased to 5.86% at June 30,
2011 from 5.50% at March 31, 2011.
As a result of the improvement in credit quality and the
strengthened capital position following the capital raise, the
Company's ratio of legacy classified assets to Tier 1 capital plus
reserves was 36.4% at June 30, 2011. The requirement for legacy
classified assets to Tier 1 capital plus reserves ratio for the
Bank stated in the memorandum of understanding ("MOU") with
regulators is a maximum of 50%, with which the Bank is in
compliance.
Note Sales
The Company sold approximately $68.8 million in held-for-sale
loans (not including SBA or mortgage loans) during the second
quarter of 2011 and received proceeds of $62.9
million. Approximately $43.1 million of these loans were sold
in a bulk sale transaction and approximately $25.7 million were
sold in individual transactions. These loans included $17.4
million in non-accrual loans, $9.0 million in performing troubled
debt restructured loans, and $6.1 million in delinquent loans.
As a result of the pricing received on the loan sales, the
Company recorded a net $5.9 million loss on sale of loans. The
Company also recorded a $2.3 million valuation allowance against
loans that remained as loans held-for-sale at June 30, 2011. Market
conditions for loan sales had somewhat deteriorated in the second
quarter, and therefore management decided to look for better loan
pricing in the future.
During the second quarter of 2011, the Company transferred
approximately $29 million in loans to held-for-sale
status. The loans were marked to their fair values, which
resulted in $9.1 million in charge-offs for the second quarter of
2011. The Company intends to sell these loans on an individual
basis during the second half of 2011.
As of June 30, 2011, the Company had $66.4 million in loans
held-for-sale, comprised of $14.2 million in SBA loans, $8.9
million in residential loans, and $43.3 million in commercial real
estate loans. Of the $43.3 million in commercial real estate
loans, $40.8 million were classified assets and $29.8 million were
non-accrual loans. The reduction in held for sale loans from $136.8
million at March 31, 2011 to $66.4 million at June 30, 2011
reflects management's strategy to be more selective in terms of
note sales, as well as the improvement in overall credit
quality. The Company does not expect future note sales through
bulk sale transactions.
Non-accrual Loans
At June 30, 2011, total non-covered non-accrual loans were $59.4
million, or 3.13% of gross non-covered loans, compared to $62.1
million, or 2.97% of loans, at March 31, 2011.
The following is a table shows "covered" and "non-covered"
non-accrual loans by loan type:
| NON-ACCRUAL LOANS (Dollars
In Thousands) |
| (Net of SBA Guaranteed Portions) |
Quarter Ended |
| Non-Covered Loans |
Jun 30, 2011 |
Mar 31, 2011 |
Dec 31, 2010 |
Sep 30, 2010 |
Jun 30, 2010 |
| |
|
|
|
|
|
| Construction |
$ 12,000 |
$ -- |
$ -- |
$ 2,660 |
$ -- |
| Real Estate Secured |
46,447 |
60,363 |
59,571 |
56,779 |
61,200 |
| Commercial &
Industrial |
808 |
1,695 |
1,284 |
3,272 |
3,051 |
| Consumer |
144 |
11 |
27 |
37 |
34 |
| Total Non-Covered Non-Accrual Loans |
$ 59,399 |
$ 62,069 |
$ 60,882 |
$ 62,748 |
$ 64,285 |
| |
|
|
|
|
|
| Covered Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Real Estate Secured |
$ 16,392 |
$ 16,269 |
$ 8,005 |
$ 10,569 |
$ 17,232 |
| Commercial &
Industrial |
2,151 |
1,795 |
2,345 |
3,031 |
1,599 |
| Total Covered Non-Accrual Loans |
$ 18,543 |
$ 18,064 |
$ 10,350 |
$ 13,600 |
$ 18,831 |
| |
|
|
|
|
|
| Total Non-Accrual Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Construction |
$ 12,000 |
$ -- |
$ -- |
$ 2,660 |
$ -- |
| Real Estate Secured |
62,839 |
76,632 |
67,576 |
67,348 |
78,432 |
| Commercial &
Industrial |
2,959 |
3,490 |
3,629 |
6,303 |
4,650 |
| Consumer |
144 |
11 |
27 |
37 |
34 |
| Total Non-Accrual Loans |
$ 77,942 |
$ 80,133 |
$ 71,232 |
$ 76,348 |
$ 83,116 |
The increase in non-accrual construction loans is attributable
to one commercial construction loan for a project in
California. This loan totaling $12.0 million was classified as
delinquent during the first quarter of 2011 and the Company had
established a specific reserve against it based on an impairment
analysis. During the second quarter of 2011, the Company
transferred this loan to held-for-sale and charged-off the specific
reserve. It is expected that there will be minimal additional loss
exposure from this loan. Real estate secured, commercial and
industrial non-accrual loans experienced large decreases from the
first to second quarter of 2011.
Impaired
Loans
Loans are classified as impaired when based on current
information, it is probable that the Company will not be able to
collect all principal and interest payments due in accordance with
the terms of the loan. Non-covered impaired loans at June 30,
2011 totaled $91.2 million, compared with $154.9 million at March
31, 2011.
Total impaired loans by loan category are shown in the table
below:
| IMPAIRED LOANS (Dollars In
Thousands) |
|
|
|
|
|
| (Net of SBA Guaranteed Portions) |
Quarter Ended |
| Non-Covered Loans |
Jun 30, 2011 |
Mar 31, 2011 |
Dec 31, 2010 |
Sep 30, 2010 |
Jun 30, 2010 |
| |
|
|
|
|
|
| Construction |
$ 12,000 |
$ -- |
$ -- |
$ 2,660 |
$ -- |
| Real Estate Secured |
74,845 |
149,402 |
93,452 |
157,068 |
128,538 |
| Commercial & Industrial |
4,216 |
5,456 |
5,649 |
8,505 |
3,870 |
| Consumer |
136 |
-- |
27 |
37 |
-- |
| Total Non-Covered Impaired
Loans |
$ 91,197 |
$ 154,858 |
$ 99,128 |
$ 168,270 |
$ 132,408 |
| |
|
|
|
|
|
| Covered Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Real Estate Secured |
$ 19,236 |
$ 18,256 |
$ 15,120 |
$ 18,837 |
$ 20,036 |
| Commercial & Industrial |
2,922 |
3,332 |
4,216 |
5,479 |
1,801 |
| Total Covered Impaired
Loans |
$ 22,158 |
$ 21,588 |
$ 19,336 |
$ 24,316 |
$ 21,837 |
| |
|
|
|
|
|
| Total Impaired Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Construction |
$ 12,000 |
$ -- |
$ -- |
$ 2,660 |
$ -- |
| Real Estate Secured |
94,081 |
167,658 |
108,572 |
175,905 |
148,574 |
| Commercial & Industrial |
7,138 |
8,788 |
9,865 |
13,984 |
5,671 |
| Consumer |
136 |
-- |
27 |
37 |
-- |
| Total Impaired Loans |
$ 113,355 |
$ 176,446 |
$ 118,464 |
$ 192,586 |
$ 154,245 |
The decrease in impaired loans during the second quarter of 2011
is largely attributable to note sales and charge-offs of impaired
loans and was experienced entirely in the non-covered
portfolio.
Performing Troubled Debt Restructured Loans
At June 30, 2011, total non-covered troubled debt restructured
loans or "TDR loans" declined to $22.3 million from $35.7 million
at March 31, 2011. All of the Company's TDR loans were performing
based on their modified terms and were not considered
non-performing. The decline in TDR loans was a result of the note
sales during the second quarter of 2011 in addition to a reduction
in the number of modification requests during the quarter.
Total TDR loans by loan category are shown in the table
below:
| PERFORMING TROUBLED DEBT
RESTRUCTURED LOANS (Dollars In Thousands) (unaudited) |
|
| (net of SBA guaranteed portions) |
| |
Quarter Ended |
| Non-Covered Loans |
Jun 30, 2011 |
Mar 31, 2011 |
Dec 31, 2010 |
Sep 30, 2010 |
Jun 30, 2010 |
| |
|
|
|
|
|
| Construction |
$ -- |
$ -- |
$ -- |
$ -- |
$ -- |
| Real Estate Secured |
18,733 |
31,540 |
36,187 |
8,268 |
49,289 |
| Commercial &
Industrial |
3,529 |
4,117 |
3,574 |
2,448 |
802 |
| Consumer |
-- |
-- |
-- |
-- |
-- |
| Total Non-Covered TDR Loans |
$ 22,262 |
$ 35,657 |
$ 39,761 |
$ 10,716 |
$ 50,091 |
| |
|
|
|
|
|
| Covered Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Real Estate Secured |
$ 8,518 |
$ 7,676 |
$ 7,115 |
$ 100,289 |
$ 2,804 |
| Commercial &
Industrial |
1,473 |
1,844 |
1,870 |
4,929 |
202 |
| Total Covered TDR Loans |
$ 9,991 |
$ 9,520 |
$ 8,985 |
$ 105,218 |
$ 3,006 |
| |
|
|
|
|
|
| Total Performing TDRs
Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Construction |
$ -- |
$ -- |
$ -- |
$ -- |
$ -- |
| Real Estate Secured |
27,251 |
39,216 |
43,302 |
108,556 |
52,093 |
| Commercial &
Industrial |
5,002 |
5,961 |
5,444 |
7,378 |
1,004 |
| Consumer |
-- |
-- |
-- |
-- |
-- |
| Total Performing TDR Loans |
$ 32,253 |
$ 45,177 |
$ 48,746 |
$ 115,934 |
$ 53,097 |
Loan Delinquencies
At June 30, 2011, total non-covered loan delinquencies declined
to $28.4 million from $35.1 million at March 31, 2011. As a
percentage of gross non-covered loans, delinquencies decreased to
1.50% at June 30, 2011, from 1.68% at March 31, 2011. The
decline in delinquencies was primarily attributable to charge-offs
and a decline in inflow to delinquency.
Delinquent loans by days past due and loan type are reflected in
the table below:
| DELINQUENT
LOANS -- By Days Past Due (Dollars In
Thousands) |
| (Net of SBA Guaranteed Portions) |
Quarter Ended |
| Non-Covered Loans |
Jun 30, 2011 |
Mar 31, 2011 |
Dec 31, 2010 |
Sep 30, 2010 |
Jun 30, 2010 |
| |
|
|
|
|
|
| 30 - 59 Days Past Due |
$ 11,782 |
$ 8,680 |
$ 15,641 |
$ 13,582 |
$ 17,146 |
| 60 - 89 Days Past Due |
16,594 |
26,389 |
11,007 |
18,126 |
14,844 |
| 90 Days, and still
accruing |
-- |
-- |
-- |
304 |
1 |
| Total Non-Covered Delinquent
Loans |
$ 28,376 |
$ 35,069 |
$ 26,648 |
$ 32,012 |
$ 31,991 |
| |
|
|
|
|
|
| Covered Loans |
|
|
|
|
|
| |
|
|
|
|
|
| 30 - 59 Days Past Due |
$ 3,303 |
$ 5,166 |
$ 4,254 |
$ 1,754 |
$ 4,108 |
| 60 - 89 Days Past Due |
1,227 |
968 |
3,566 |
1,053 |
910 |
| 90 Days, and still
accruing |
-- |
-- |
-- |
-- |
-- |
| Total Covered Delinquent
Loans |
$ 4,530 |
$ 6,134 |
$ 7,820 |
$ 2,807 |
$ 5,018 |
| |
|
|
|
|
|
| Total Delinquent Loans |
|
|
|
|
|
| |
|
|
|
|
|
| 30 - 59 Days Past Due |
$ 15,085 |
$ 13,846 |
$ 19,895 |
$ 15,336 |
$ 21,254 |
| 60 - 89 Days Past Due |
17,821 |
27,357 |
14,573 |
19,179 |
15,754 |
| 90 Days, and still
accruing |
-- |
-- |
-- |
304 |
1 |
| Total Delinquent Loans |
$ 32,906 |
$ 41,203 |
$ 34,468 |
$ 34,819 |
$ 37,009 |
Loan Classifications
At June 30, 2011, total non-covered classified loans (loan
graded substandard, doubtful, and loss) declined 27.4% to $158.0
million from $217.7 million at March 31, 2011. Non-covered
criticized loans (loans graded special mention) also experienced a
large decline to $156.2 million at June 30, 2011 from $180.7
million at March 31, 2011, a reduction of 13.5%.
Loan balances broken down by classification are reflected in the
table below:
| LOAN CLASSIFICATIONS
(Dollars In Thousands) |
| |
Quarter Ended |
| Non-Covered Loans |
Jun 30, 2011 |
Mar 31, 2011 |
Dec 31, 2010 |
Sep 30, 2010 |
Jun 30, 2010 |
| |
|
|
|
|
|
| Special Mention |
$ 156,249 |
$ 180,656 |
$ 102,990 |
$ 101,997 |
$ 87,197 |
| Substandard |
140,645 |
207,422 |
216,283 |
277,582 |
294,544 |
| Doubtful |
17,367 |
10,231 |
11,306 |
964 |
2,400 |
| Loss |
-- |
-- |
-- |
-- |
-- |
| Total Non-Covered Gross
Loans |
$ 314,261 |
$ 398,309 |
$ 330,579 |
$ 380,543 |
$ 384,141 |
| |
|
|
|
|
|
| Covered Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Special Mention |
$ 12,639 |
$ 20,554 |
$ 15,618 |
$ 15,644 |
$ 26,198 |
| Substandard |
35,006 |
31,755 |
30,836 |
34,150 |
39,700 |
| Doubtful |
5,806 |
2,112 |
2,921 |
3,245 |
2,589 |
| Loss |
-- |
-- |
-- |
-- |
-- |
| Total Covered Gross Loans |
$ 53,451 |
$ 54,421 |
$ 49,375 |
$ 53,039 |
$ 68,487 |
| |
|
|
|
|
|
| Total Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Special Mention |
$ 168,888 |
$ 201,210 |
$ 118,608 |
$ 117,641 |
$ 113,395 |
| Substandard |
175,651 |
239,177 |
247,119 |
311,732 |
334,244 |
| Doubtful |
23,173 |
12,343 |
14,227 |
4,209 |
4,989 |
| Loss |
-- |
-- |
-- |
-- |
-- |
| Total Gross Loans |
$ 367,712 |
$ 452,730 |
$ 379,954 |
$ 433,582 |
$ 452,628 |
Loan Charge-offs
Non-covered loan charge-offs for the second quarter of 2011
totaled $14.2 million, compared to $41.0 million in the first
quarter of 2011. Approximately 64.3% of the charge-offs for
the second quarter of 2011, were attributable to the transfer of
loans to held-for-sale status. The decline in charge-offs for the
second quarter of 2011 reflects an overall improvement in credit
quality in the loan portfolio.
Charge-offs by loan type is reflected in the table
below:
| LOAN CHARGE-OFFS (Dollars In
Thousands) |
|
|
|
|
|
| |
Quarter Ended |
| Non-Covered Loans |
Jun 30, 2011 |
Mar 31, 2011 |
Dec 31, 2010 |
Sep 30, 2010 |
Jun 30, 2010 |
| |
|
|
|
|
|
| Construction |
$ 3,000 |
$ 805 |
$ 401 |
$ -- |
$ -- |
| Real Estate Secured |
9,012 |
39,062 |
60,317 |
12,445 |
12,268 |
| Commercial &
Industrial |
2,185 |
1,151 |
10,487 |
1,448 |
3,841 |
| Consumer |
9 |
19 |
14 |
33 |
80 |
| Total Non-Covered Charge-Offs Loans |
$ 14,206 |
$ 41,037 |
$ 71,219 |
$ 13,926 |
$ 16,189 |
| |
|
|
|
|
|
| Covered Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Real Estate Secured |
16 |
171 |
252 |
324 |
596 |
| Commercial &
Industrial |
(48) |
489 |
431 |
91 |
373 |
| Consumer |
-- |
-- |
-- |
-- |
-- |
| Total Covered Charge-Offs Loans |
$ (32) |
$ 660 |
$ 683 |
$ 415 |
$ 969 |
| |
|
|
|
|
|
| Total Charge-Offs Loans |
|
|
|
|
|
| |
|
|
|
|
|
| Construction |
$ 3,000 |
$ 805 |
$ 401 |
$ -- |
$ -- |
| Real Estate Secured |
9,028 |
39,233 |
60,569 |
12,769 |
12,864 |
| Commercial &
Industrial |
2,137 |
1,640 |
10,918 |
1,539 |
4,214 |
| Consumer |
9 |
19 |
14 |
33 |
80 |
| Total Charge-Offs Loans |
$ 14,174 |
$ 41,697 |
$ 71,902 |
$ 14,341 |
$ 17,158 |
Capital Ratios
The Company's capital ratios significantly increased in the
second quarter of 2011 due to the $109 million common stock
offering. As of June 30, 2011, the Company's Tier 1 Leverage
ratio was 12.85%. The minimum required Tier 1 capital ratio for the
Bank stated in the MOU is 10%, in which the Bank is in
compliance.
In addition, all of the Company's capital ratios remain in
excess of "well capitalized" regulatory requirements as shown in
the following table:
| (Dollars In thousands, except per share
info) |
June 30, 2011 |
Well Capitalized Regulatory
Requirements |
Total Excess Above Well
Capitalized Requirements |
| |
|
|
|
| Tier 1 Leverage Capital Ratio |
12.85% |
5.00% |
$ 215,268 |
| Tier 1 Risk-Based Capital Ratio |
17.70% |
6.00% |
232,915 |
| Total Risk-Based Capital Ratio |
19.10% |
10.00% |
181,266 |
| Tangible Common Equity To Tangible
Assets |
8.28% |
N/A |
N/A |
| Tangible Common Equity Per Common Share |
$ 3.10 |
N/A |
N/A |
CONFERENCE CALL
Management will host its quarterly conference call on July 26,
2011, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are
invited to participate in the call by dialing 800-599-9829
(domestic number) or 617-847-8703 (international number) and
entering passcode 83621142.
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, the preliminary
nature of the financial results reported herein, the preliminary
assessment of the goodwill impairment, 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.
| |
|
|
|
|
| |
|
|
|
|
| PRELIMINARY CONSOLIDATED
BALANCE SHEET |
|
|
|
|
| (dollars in thousands) (unaudited) |
|
June 30, |
March 31, |
|
June 30, |
|
| |
|
2011 |
2011 |
% Change |
2010 |
% Change |
| ASSETS: |
|
|
|
|
|
|
| Cash and Due from Banks |
|
$ 97,499 |
$ 68,827 |
42% |
$ 134,707 |
-28% |
| Federal Funds Sold and Other Cash
Equivalents |
|
115,005 |
5 |
2300000% |
224,005 |
-49% |
| Total Cash and Cash
Equivalents |
|
212,504 |
68,832 |
209% |
358,712 |
-41% |
| |
|
|
|
|
|
|
| Investment Securities Available For Sale |
|
307,309 |
340,812 |
-10% |
506,381 |
-39% |
| Investment Securities Held To Maturity |
|
74 |
80 |
-8% |
96 |
-23% |
| Total Investment
Securities |
|
307,383 |
340,892 |
-10% |
506,477 |
-39% |
| |
|
|
|
|
|
|
| Loans: |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Loans Held For Sale |
|
66,429 |
136,769 |
-51% |
16,965 |
292% |
| |
|
|
|
|
|
|
| Real Estate Construction |
|
57,637 |
73,879 |
-22% |
57,379 |
0% |
| Residential Real Estate |
|
90,715 |
91,842 |
-1% |
106,057 |
-14% |
| Commercial Real Estate |
|
1,558,067 |
1,656,495 |
-6% |
1,885,897 |
-17% |
| Commercial and Industrial |
|
294,438 |
310,225 |
-5% |
370,323 |
-20% |
| Consumer |
|
15,430 |
14,675 |
5% |
18,401 |
-16% |
| Total Loans |
|
2,016,287 |
2,147,116 |
-6% |
2,438,057 |
-17% |
| Allowance For Loan Losses |
|
(110,995) |
(114,842) |
-3% |
(91,419) |
21% |
| Loans, Net of Allowance for Loan
Losses |
|
1,905,292 |
2,032,274 |
-6% |
2,346,638 |
-19% |
| |
|
|
|
|
|
|
| Accrued Interest Receivable |
|
8,082 |
9,829 |
-18% |
13,427 |
-40% |
| Due from Customers on Acceptances |
|
509 |
169 |
201% |
611 |
-17% |
| Other Real Estate Owned |
|
8,499 |
8,512 |
0% |
6,540 |
30% |
| Premises and Equipment |
|
13,243 |
13,555 |
-2% |
13,741 |
-4% |
| Federal Home Loan Bank (FHLB) Stock, at
Cost |
|
17,033 |
17,796 |
-4% |
20,075 |
-15% |
| Cash Surrender Value of Life Insurance |
|
19,582 |
18,812 |
4% |
18,354 |
7% |
| Investment in affordable housing
partnerships |
|
33,697 |
34,781 |
-3% |
29,665 |
14% |
| Deferred Income Taxes |
|
19,112 |
19,112 |
0% |
28,199 |
-32% |
| Servicing Assets |
|
8,561 |
7,664 |
12% |
6,655 |
29% |
| Goodwill (1) |
|
-- |
6,675 |
-100% |
6,675 |
-100% |
| FDIC Indemnification |
|
21,912 |
26,673 |
-18% |
28,538 |
-23% |
| Other Assets |
|
32,739 |
46,756 |
-30% |
35,822 |
-9% |
| TOTAL ASSETS |
|
$ 2,674,577 |
$ 2,789,101 |
-4% |
$ 3,437,094 |
-22% |
| |
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS'
EQUITY: |
|
|
|
|
|
|
| LIABILITIES: |
|
|
|
|
|
|
| Non-interest Bearing Demand Deposits |
|
$ 449,270 |
$ 484,402 |
-7% |
$ 427,793 |
5% |
| Savings and Interest Checking |
|
110,097 |
109,399 |
1% |
100,210 |
10% |
| Money Market Deposits |
|
587,442 |
622,078 |
-6% |
908,112 |
-35% |
| Time Deposits in denomination of $100,000 or
more |
|
646,238 |
670,686 |
-4% |
752,656 |
-14% |
| Other Time Deposits |
|
360,825 |
383,462 |
-6% |
712,698 |
-49% |
| Total Deposits |
|
2,153,872 |
2,270,027 |
-5% |
2,901,469 |
-26% |
| |
|
|
|
|
|
|
| FHLB borrowings and Federal Funds
Purchased |
|
110,000 |
215,000 |
-49% |
145,306 |
-24% |
| Acceptance Outstanding |
|
509 |
169 |
201% |
611 |
-17% |
| Junior Subordinated Debentures |
|
87,321 |
87,321 |
0% |
87,321 |
0% |
| Accrued Interest Payable |
|
3,651 |
4,049 |
-10% |
5,461 |
-33% |
| Other Liabilities |
|
35,730 |
34,783 |
3% |
29,491 |
21% |
| Total Liabilities |
|
2,391,083 |
2,611,349 |
-8% |
3,169,659 |
-25% |
| |
|
|
|
|
|
|
| STOCKHOLDERS' EQUITY: |
|
|
|
|
|
|
| Preferred Stock |
|
60,721 |
60,584 |
0% |
60,186 |
1% |
| Common Stock |
|
164,585 |
55,655 |
196% |
55,370 |
197% |
| Retained Earnings |
|
54,431 |
58,994 |
-8% |
147,325 |
-63% |
| Accumulated Other Comprehensive Income |
|
3,757 |
2,519 |
49% |
4,554 |
-18% |
| Total Stockholders'
Equity |
|
283,494 |
177,752 |
59% |
267,435 |
6% |
| TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
$ 2,674,577 |
$ 2,789,101 |
-4% |
$ 3,437,094 |
-22% |
| |
|
|
|
|
|
|
| (1) Preliminary in nature, as discussed in
body of release |
|
|
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| PRELIMINARY CONSOLIDATED
STATEMENT OF OPERATIONS |
|
|
|
|
| (dollars in thousands, except per share data)
(unaudited) |
|
|
|
|
|
| |
|
|
|
|
|
| |
Quarter Ended |
|
Quarter Ended |
| |
June 30, 2011 |
March 31, 2011 |
% Change |
June 30, 2010 |
% Change |
| |
|
|
|
|
|
| INTEREST INCOME |
|
|
|
|
|
| Interest and Fees on Loans |
$ 30,767 |
$ 33,462 |
-8% |
$ 36,079 |
-15% |
| Interest on Investment
Securities |
2,156 |
1,983 |
9% |
4,756 |
-55% |
| Interest on Federal Funds
Sold |
74 |
179 |
-59% |
294 |
-75% |
| Total Interest Income |
32,997 |
35,624 |
-7% |
41,129 |
-20% |
| |
|
|
|
|
|
| INTEREST EXPENSE |
|
|
|
|
|
| Deposits |
4,663 |
5,110 |
-9% |
10,476 |
-55% |
| FHLB Advances and Other
Borrowings |
999 |
1,219 |
-18% |
1,414 |
-29% |
| Total Interest Expense |
5,662 |
6,329 |
-11% |
11,890 |
-52% |
| |
|
|
|
|
|
| Net Interest Income Before
Provision for Losses on Loans and Loan Commitments |
27,335 |
29,295 |
-7% |
29,239 |
-7% |
| Provision for Losses on Loans
and Loan Commitments |
10,300 |
44,800 |
-77% |
32,200 |
-68% |
| Net Interest Income (Loss)
After Provision for Losses on Loans and Loan Commitments |
17,035 |
(15,505) |
-210% |
(2,961) |
-675% |
| |
|
|
|
|
|
| NONINTEREST INCOME |
|
|
|
|
|
| Service Charges on
Deposits |
3,149 |
3,080 |
2% |
3,215 |
-2% |
| (Loss) Gain on Sales of Loans,
Net |
(1,282) |
3,592 |
-136% |
1,444 |
-189% |
| Gain on Sale of Investment
Securities |
6 |
36 |
-83% |
3,658 |
-100% |
| Other |
2,179 |
1,968 |
11% |
1,561 |
40% |
| Total Noninterest
Income |
4,052 |
8,676 |
-53% |
9,878 |
-59% |
| |
|
|
|
|
|
| NONINTEREST EXPENSES |
|
|
|
|
|
| Salaries and Employee
Benefits |
6,753 |
7,817 |
-14% |
7,284 |
-7% |
| Goodwill Impairment (1) |
6,675 |
-- |
0% |
-- |
0% |
| Occupancy & Equipment |
2,053 |
1,980 |
4% |
1,946 |
5% |
| Data Processing |
773 |
712 |
9% |
690 |
12% |
| Other |
9,359 |
6,967 |
34% |
6,212 |
51% |
| Total Noninterest
Expenses |
25,613 |
17,476 |
47% |
16,132 |
59% |
| |
|
|
|
|
|
| Loss Before Income Taxes |
(4,526) |
(24,305) |
-81% |
(9,215) |
-51% |
| Income Taxes (Benefit) Provision |
(877) |
26,888 |
-103% |
(5,551) |
-84% |
| NET LOSS |
$ (3,649) |
$ (51,193) |
-93% |
$ (3,664) |
0% |
| |
|
|
|
|
|
| Preferred Stock Cash Dividend
and Accretion of |
|
|
|
|
|
| Preferred Stock Discount |
913 |
912 |
0% |
906 |
1% |
| NET LOSS AVAILABLE TO COMMON
SHAREHOLDERS |
$ (4,562) |
$ (52,105) |
-91% |
$ (4,570) |
0% |
| |
|
|
|
|
|
| PER COMMON SHARE
INFORMATION |
|
|
|
|
|
| Basic Loss Per Common
Share |
$ (0.09) |
$ (1.77) |
-95% |
$ (0.15) |
-41% |
| Diluted Loss Per Common
Share |
$ (0.09) |
$ (1.77) |
-95% |
$ (0.15) |
-41% |
| |
|
|
|
|
|
| WEIGHTED-AVERAGE COMMON SHARES
OUTSTANDING: |
|
|
|
|
|
| Basic |
50,151,459 |
29,476,288 |
|
29,487,994 |
|
| Diluted |
50,151,459 |
29,476,288 |
|
29,487,994 |
|
| |
|
|
|
|
|
| (1) Preliminary in nature, as discussed in
body of release |
|
|
|
|
|
| |
|
|
| PRELIMINARY CONSOLIDATED
STATEMENT OF OPERATIONS |
|
|
| (dollars in thousands, except per share data)
(unaudited) |
|
|
|
| |
|
|
| |
Six Months Ended |
|
| |
June 30, 2011 |
June 30, 2010 |
% Change |
| |
|
|
|
| INTEREST INCOME |
|
|
|
| Interest and Fees on Loans |
$ 64,229 |
$ 71,383 |
-10% |
| Interest on Investment
Securities |
4,139 |
10,371 |
-60% |
| Interest on Federal Funds
Sold |
253 |
676 |
-63% |
| Total Interest Income |
68,621 |
82,430 |
-17% |
| |
|
|
|
| INTEREST EXPENSE |
|
|
|
| Deposits |
9,773 |
21,650 |
-55% |
| FHLB Advances and Other
Borrowings |
2,217 |
2,983 |
-26% |
| Total Interest Expense |
11,990 |
24,633 |
-51% |
| |
|
|
|
| Net Interest Income Before
Provision for Losses on Loans and Loan Commitments |
56,631 |
57,797 |
-2% |
| Provision for Losses on Loans
and Loan Commitments |
55,100 |
49,200 |
12% |
| Net Interest Income After
Provision for Losses on Loans and Loan Commitments |
1,531 |
8,597 |
-82% |
| |
|
|
|
| NONINTEREST INCOME |
|
|
|
| Service Charges on
Deposits |
6,229 |
6,439 |
-3% |
| Gain on Sales of Loans |
2,310 |
1,480 |
56% |
| Gain on Sale of Investment
Securities |
42 |
6,142 |
-99% |
| Other |
4,134 |
3,602 |
15% |
| Total Noninterest
Income |
12,715 |
17,663 |
-28% |
| |
|
|
|
| NONINTEREST EXPENSES |
|
|
|
| Salaries and Employee
Benefits |
14,569 |
14,399 |
1% |
| Goodwill Impairment (1) |
6,675 |
-- |
0% |
| Occupancy & Equipment |
4,033 |
4,127 |
-2% |
| Data Processing |
1,485 |
1,327 |
12% |
| Other |
16,316 |
10,969 |
49% |
| Total Noninterest
Expenses |
43,078 |
30,822 |
40% |
| |
|
|
|
| Loss Before Income Taxes |
(28,832) |
(4,562) |
532% |
| Income Taxes Provision
(Benefit) |
26,010 |
(4,213) |
-717% |
| NET (LOSS) INCOME |
$ (54,842) |
$ (349) |
15614% |
| |
|
|
|
| Preferred Stock Cash Dividend
and Accretion of |
|
|
|
| Preferred Stock Discount |
1,826 |
1,809 |
1% |
| NET LOSS AVAILABLE TO COMMON
SHAREHOLDERS |
$ (56,668) |
$ (2,158) |
2526% |
| |
|
|
|
| PER COMMON SHARE
INFORMATION |
|
|
|
| Basic Loss Per Common
Share |
$ (1.42) |
$ (0.07) |
1842% |
| Diluted Loss Per Common
Share |
$ (1.42) |
$ (0.07) |
1842% |
| |
|
|
|
| WEIGHTED-AVERAGE COMMON SHARES
OUTSTANDING: |
|
|
|
| Basic |
39,870,987 |
29,486,011 |
|
| Diluted |
39,870,987 |
29,486,011 |
|
| |
|
|
|
| (1) Preliminary in nature, as discussed in
body of release |
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| SUMMARY OF PRELIMINARY
FINANCIAL DATA |
|
|
|
|
|
|
| (dollars in thousands, except per
share data) (unaudited) |
|
|
|
|
|
| |
|
|
|
|
|
|
| |
Quarter Ended |
|
| AVERAGE BALANCES |
June 30, 2011 |
|
March 31, 2011 |
|
June 30, 2010 |
|
| |
|
|
|
|
|
|
| Average Assets |
$ 2,750,821 |
|
$ 2,921,915 |
|
$ 3,475,151 |
|
| Average Equity |
218,478 |
|
231,622 |
|
275,452 |
|
| Average Net Loans |
2,072,244 |
|
2,218,079 |
|
2,367,860 |
|
| Average Deposits |
2,198,081 |
|
2,314,733 |
|
2,939,513 |
|
| Average Time Deposits in denomination of
$100,000 or more |
654,647 |
|
670,542 |
|
751,094 |
|
| Average Interest Earning Assets |
2,496,763 |
|
2,610,600 |
|
3,174,226 |
|
| |
|
|
|
|
|
|
| |
Six Months Ended |
|
| AVERAGE BALANCES |
June 30, 2011 |
|
|
|
June 30, 2010 |
|
| |
|
|
|
|
|
|
| Average Assets |
$ 2,835,895 |
|
|
|
$ 3,446,551 |
|
| Average Equity |
225,014 |
|
|
|
274,378 |
|
| Average Net Loans |
2,144,759 |
|
|
|
2,363,714 |
|
| Average Deposits |
2,256,084 |
|
|
|
2,913,160 |
|
| Average Time Deposits in denomination of
$100,000 or more |
665,088 |
|
|
|
759,933 |
|
| Average Interest Earning Assets |
2,558,838 |
|
|
|
3,165,091 |
|
| |
|
|
|
|
|
|
| |
Quarter Ended |
|
| PROFITABILITY |
June 30, 2011 |
|
March 31, 2011 |
|
June 30, 2010 |
|
| |
|
|
|
|
|
|
| Annualized Return on Average Assets |
-0.53% |
|
-7.01% |
|
-0.42% |
|
| Annualized Return on Average Equity |
-6.68% |
|
-88.41% |
|
-5.32% |
|
| Efficiency Ratio |
81.60% |
|
46.02% |
|
41.24% |
|
| Annualized Operating Expense/Average
Assets |
3.72% |
|
2.39% |
|
1.86% |
|
| Annualized Net Interest Margin |
4.42% |
|
4.53% |
|
3.72% |
|
| |
|
|
|
|
|
|
| |
Six Months Ended |
|
| PROFITABILITY |
June 30, 2011 |
|
|
|
June 30, 2010 |
|
| |
|
|
|
|
|
|
| Annualized Return on Average Assets |
-3.87% |
|
|
|
-0.02% |
|
| Annualized Return on Average Equity |
-48.75% |
|
|
|
-0.25% |
|
| Efficiency Ratio |
62.12% |
|
|
|
40.85% |
|
| Annualized Operating Expense/Average
Assets |
3.04% |
|
|
|
1.79% |
|
| Annualized Net Interest Margin |
4.46% |
|
|
|
3.67% |
|
| |
|
|
|
|
|
|
| |
As Of |
| |
|
Cost of |
|
Cost of |
|
Cost of |
| DEPOSIT
COMPOSITION |
June 30, 2011 |
Funds |
March 31, 2011 |
Funds |
June 30, 2010 |
Funds |
| |
|
|
|
|
|
|
| Noninterest Bearing Demand Deposits |
20.9% |
0.00% |
21.3% |
0.00% |
14.7% |
0.00% |
| Savings & Interest Checking |
5.1% |
2.31% |
4.8% |
2.26% |
3.5% |
2.57% |
| Money Market Deposits |
27.3% |
0.93% |
27.4% |
0.87% |
31.3% |
1.56% |
| Time Deposits of $100,000 or More |
30.0% |
0.97% |
29.6% |
1.00% |
25.9% |
1.55% |
| Other Time Deposits |
16.7% |
1.11% |
16.9% |
1.31% |
24.6% |
2.00% |
| Total Deposits |
100.0% |
0.85% |
100.0% |
0.88% |
100.0% |
1.43% |
| |
|
|
|
|
|
|
| |
As Of |
|
| CAPITAL RATIOS |
June 30, 2011 |
|
March 31, 2011 |
|
June 30, 2010 |
|
| |
|
|
|
|
|
|
| Tier 1 Leverage Ratio |
12.85% |
|
7.64% |
|
9.51% |
|
| Tier 1 Risk-Based Capital Ratio |
17.70% |
|
10.30% |
|
13.72% |
|
| Total Risk-Based Capital Ratio |
19.10% |
|
12.57% |
|
15.17% |
|
| Total Shareholders' Equity |
$ 283,494 |
|
$ 177,752 |
|
$ 267,435 |
|
| Book Value Per Common Share |
$ 3.12 |
|
$ 3.98 |
|
$ 7.03 |
|
| Tangible Common Equity Per Common Share
* |
$ 3.10 |
|
$ 3.70 |
|
$ 6.74 |
|
| Tangible Common Equity to Tangible Assets
** |
8.28% |
|
3.92% |
|
5.80% |
|
| |
|
|
|
|
|
|
| * Tangible common equity excludes
goodwill, other intangible assets, and TARP preferred stock |
|
|
|
|
|
|
| ** Tangible assets excludes goodwill and
intangible assets |
|
|
|
|
|
|
| |
|
| |
|
| ALLOWANCE FOR LOAN
LOSSES |
|
| (dollars in thousands) (unaudited) |
Quarter Ended |
| |
June 30, 2011 |
March 31, 2011 |
December 31, 2010 |
September 30, 2010 |
June 30, 2010 |
| |
|
|
|
|
|
| Balance at Beginning of Period |
$ 114,842 |
$ 110,953 |
$ 99,020 |
$ 91,419 |
$ 79,576 |
| Provision for Losses on Loans |
10,123 |
44,800 |
82,600 |
17,999 |
31,269 |
| FDIC Indemnification |
-- |
-- |
-- |
2,953 |
(3,140) |
| Recoveries on loans previously
charged-off |
204 |
786 |
1,235 |
990 |
872 |
| Less Charge-offs |
(14,174) |
(41,697) |
(71,902) |
(14,341) |
(17,158) |
| Balance at End of Period |
$ 110,995 |
$ 114,842 |
$ 110,953 |
$ 99,020 |
$ 91,419 |
| |
|
|
|
|
|
| Net Loan Charge-offs/Average Total Loans |
0.67% |
1.84% |
3.03% |
0.56% |
0.67% |
| Charge-offs/Average Total Loans |
0.68% |
1.88% |
3.08% |
0.60% |
0.70% |
| Allowance for Loan Losses/Gross Loans |
5.32% |
5.02% |
4.76% |
4.04% |
3.72% |
| Allowance for Loan Losses/Legacy Wilshire
Loans |
5.86% |
5.50% |
5.23% |
4.44% |
4.11% |
| Allowance for Loan Losses/Non-accrual
Loans |
142.41% |
143.31% |
155.76% |
129.70% |
109.99% |
| Allowance for Loan Losses/Legacy Non-accrual
Loans |
186.86% |
185.02% |
182.24% |
157.80% |
142.21% |
| Allowance for Loan Losses/Non-performing
Loans |
142.41% |
143.31% |
155.76% |
129.18% |
109.99% |
| Allowance for Loan Losses/Legacy
Non-performing Loans |
186.86% |
185.02% |
182.24% |
157.04% |
142.21% |
| Allowance for Loan Losses/Non-performing
Assets |
128.41% |
129.55% |
128.69% |
106.88% |
101.97% |
| Allowance for Loan Losses/Legacy
Non-performing Assets |
167.16% |
164.68% |
151.35% |
136.44% |
133.20% |
| |
|
|
|
|
|
| |
|
|
|
|
|
| NON-PERFORMING
ASSETS |
|
|
|
|
|
| (net of SBA guaranteed portions) |
Quarter Ended |
| |
June 30, 2011 |
March 31, 2011 |
December 31, 2010 |
September 30, 2010 |
June 30, 2010 |
| Nonaccrual Loans: |
|
|
|
|
|
| Non-covered Loans |
$ 59,399 |
$ 62,069 |
$ 60,882 |
$ 62,749 |
$ 64,285 |
| Covered Loans |
18,543 |
18,064 |
10,350 |
13,599 |
18,831 |
| Total |
77,942 |
80,133 |
71,232 |
76,348 |
83,116 |
| |
|
|
|
|
|
| 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 |
59,399 |
62,069 |
60,882 |
63,053 |
64,286 |
| Covered Loans |
18,543 |
18,064 |
10,350 |
13,599 |
18,831 |
| Total |
77,942 |
80,133 |
71,232 |
76,652 |
83,117 |
| |
|
|
|
|
|
| OREO and Repossessed Vehicles: |
|
|
|
|
|
| Non-covered Loans |
7,001 |
7,668 |
12,429 |
9,519 |
4,346 |
| Covered Loans |
1,498 |
844 |
2,554 |
6,477 |
2,194 |
| Total |
8,499 |
8,512 |
14,983 |
15,996 |
6,540 |
| |
|
|
|
|
|
| Total Nonperforming Assets: |
|
|
|
|
|
| Non-covered
Loans |
66,400 |
69,737 |
73,311 |
72,572 |
68,632 |
| Covered Loans |
20,041 |
18,908 |
12,904 |
20,076 |
21,025 |
| Total |
$ 86,441 |
$ 88,645 |
$ 86,215 |
$ 92,648 |
$ 89,657 |
| |
|
|
|
|
|
| Total Nonperforming Loans/Gross Loans |
3.73% |
3.50% |
3.06% |
3.13% |
3.38% |
| Total Legacy Nonperforming Loans/Legacy Gross
Loans |
3.13% |
2.97% |
2.87% |
2.83% |
2.89% |
| |
|
|
|
|
|
| Total Nonperforming Assets/Total Assets |
3.22% |
3.18% |
2.90% |
2.87% |
2.61% |
| Total Legacy Nonperforming Assets/Total
Assets |
2.48% |
2.50% |
2.47% |
2.24% |
2.00% |
| |
|
| |
|
| LOAN ORIGINATION
AMOUNT |
|
| (Dollars In Thousands) |
Quarter Ended |
| |
Jun 30, 2011 |
Mar 31, 2011 |
Dec 31, 2010 |
Sep 30, 2010 |
Jun 30, 2010 |
| |
|
|
|
|
|
| Total new loan origination amount,
excluding renewal |
$ 82,183 |
$ 120,037 |
$ 169,051 |
$ 112,911 |
$ 186,121 |
| SBA new loan origination amount,
excluding renewal |
$ 27,665 |
$ 48,459 |
$ 47,735 |
$ 17,613 |
$ 32,630 |
| |
|
|
| |
|
|
| ALLOWANCE FOR OFF-BALANCE
SHEET ITEMS |
|
|
| (Dollars In Thousands) |
Quarter Ended |
Six Months Ended |
| |
Jun 30, 2011 |
Jun 30, 2010 |
Jun 30, 2011 |
Jun 30, 2010 |
| |
|
|
|
|
| Balance at beginning of period |
$ 3,926 |
$ 2,585 |
$ 3,926 |
$ 2,515 |
| Provision for losses on off-balance
sheet items |
177 |
931 |
177 |
1,001 |
| Balance at end of period |
$ 4,103 |
$ 3,516 |
$ 4,103 |
$ 3,516 |
| |
| |
| Reconciliation of GAAP
financial measures to non-GAAP financial measures: |
| Tangible Common Equity
and Tangible Assets (dollars in thousands, except per
share data) (unaudited) |
| |
Quarter Ended |
| |
June 30, 2011 |
March 31, 2011 |
June 30, 2010 |
| |
|
|
|
| Total stockholders' equity |
$ 283,494 |
$ 177,752 |
$ 267,435 |
| Preferred stock, net of discount |
(60,721) |
(60,584) |
(60,186) |
| Goodwill and other intangible assets,
net |
(1,483) |
(8,239) |
(8,504) |
| Tangible common equity |
$ 221,290 |
$ 108,929 |
$ 198,745 |
| |
|
|
|
| Total assets |
$ 2,674,577 |
$ 2,789,101 |
$ 3,437,094 |
| Goodwill and other intangible assets,
net |
(1,483) |
(8,239) |
(8,504) |
| Tangible assets |
$ 2,673,094 |
$ 2,780,862 |
$ 3,428,590 |
| |
|
|
|
| Common shares outstanding |
71,291,614 |
29,471,714 |
29,476,734 |
| |
| |
| Reconciliation of GAAP
financial measures to non-GAAP financial measures: |
| Net Income Excluding
Goodwill (dollars in thousands, except per share data)
(unaudited) |
|
| |
|
|
| |
Quarter Ended |
Six Months Ended |
| |
June 30, 2011 |
June 30, 2011 |
| |
|
|
| GAAP Net (Loss) Income Available to Common
Shareholders |
$ (4,562) |
$ (56,668) |
| |
|
|
| GAAP PER COMMON SHARE
INFORMATION |
|
|
| Basic Earnings Per Common
Share |
$ (0.09) |
$ (1.42) |
| Diluted Earnings Per Common
Share |
$ (0.09) |
$ (1.42) |
| |
|
|
| WEIGHTED-AVERAGE COMMON SHARES
OUTSTANDING: |
|
|
| Basic |
50,151,459 |
39,870,987 |
| Diluted |
50,151,459 |
39,870,987 |
| |
|
|
| Goodwill Impairment Loss (1) |
$ 6,675 |
$ 6,675 |
| |
|
|
| Non-GAAP Net (Loss) Income Available to
Common Shareholders, |
|
|
| Excluding Impairment Loss on
Goodwill |
$ 2,113 |
$ (49,993) |
| |
|
|
| NON-GAAP PER COMMON SHARE
INFORMATION |
|
|
| EXCLUDING IMPAIRMENT LOSS ON
GOODWILL |
|
|
| Basic Earnings Per Common
Share |
$ 0.04 |
$ (1.25) |
| Diluted Earnings Per Common
Share |
$ 0.04 |
$ (1.25) |
| |
|
|
| (1) Preliminary in nature, as discussed in
body of release |
|
|
| |
|
|
| |
| WILSHIRE BANCORP, INC.
AND SUBSIDIARIES |
| AVERAGE BALANCES,
AVERAGE YIELDS EARNED AND AVERAGE RATES PAID |
| (dollars in thousands)
(unaudited) |
| |
| |
For the Quarter
Ended |
| |
June 30,
2011 |
March 31,
2011 |
June 30,
2010 |
| |
Average |
Interest |
Average |
Average |
Interest |
Average |
Average |
Interest |
Average |
| |
Balance |
Income/ |
Yield/ |
Balance |
Income/ |
Yield/ |
Balance |
Income/ |
Yield/ |
| |
|
Expense |
Rate |
|
Expense |
Rate |
|
Expense |
Rate |
| INTEREST EARNING ASSETS |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Real Estate Loans |
$ 1,883,055 |
$ 26,075 |
5.54% |
$1,995,191 |
$ 27,656 |
5.54% |
$ 2,058,774 |
$ 29,850 |
5.80% |
| Commercial Loans |
299,078 |
3,873 |
5.18% |
327,887 |
4,592 |
5.60% |
378,752 |
5,363 |
5.66% |
| Consumer Loans |
14,809 |
114 |
3.08% |
15,157 |
121 |
3.19% |
17,584 |
179 |
4.07% |
| Total Gross Loans |
2,196,942 |
30,062 |
5.47% |
2,338,235 |
32,369 |
5.54% |
2,455,110 |
35,392 |
5.77% |
| |
|
|
|
|
|
|
|
|
|
| Loan Fees toward Yield |
|
705 |
|
|
1,093 |
|
|
687 |
|
| Allowance for Loan Losses & Unearned
Income |
(124,698) |
|
|
(120,156) |
|
|
(87,250) |
|
|
| Net Loans |
2,072,244 |
30,767 |
5.94% |
2,218,079 |
33,462 |
6.03% |
2,367,860 |
36,079 |
6.09% |
| |
|
|
|
|
|
|
|
|
|
| INVESTMENT SECURITIES AND OTHER
INTEREST-EARNING ASSETS: |
|
|
|
|
|
|
|
|
|
| Investment Securities* |
333,044 |
2,156 |
2.86% |
334,694 |
1,983 |
2.66% |
647,782 |
4,756 |
3.12% |
| Federal Funds Sold |
91,475 |
74 |
0.32% |
57,827 |
179 |
1.24% |
158,584 |
294 |
0.74% |
| Total Investment Securities and
Other Earning Assets |
424,519 |
2,230 |
2.32% |
392,521 |
2,162 |
2.45% |
806,366 |
5,050 |
2.65% |
| |
|
|
|
|
|
|
|
|
|
| TOTAL INTEREST-EARNING
ASSETS |
$ 2,496,763 |
$ 32,997 |
5.32% |
$ 2,610,600 |
$ 35,624 |
5.50% |
$ 3,174,226 |
$ 41,129 |
5.22% |
| |
|
|
|
|
|
|
|
|
|
| INTEREST BEARING
LIABILITIES |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| INTEREST-BEARING
DEPOSITS: |
|
|
|
|
|
|
|
|
|
| Money Market |
$ 600,686 |
$ 1,404 |
0.93% |
$ 644,249 |
$ 1,408 |
0.87% |
$ 972,096 |
$ 3,541 |
1.46% |
| NOW |
22,724 |
20 |
0.35% |
24,738 |
23 |
0.37% |
22,019 |
26 |
0.47% |
| Savings |
86,382 |
609 |
2.82% |
85,287 |
598 |
2.80% |
75,677 |
617 |
3.26% |
| Time Deposits of $100,000 or More |
654,647 |
1,587 |
0.97% |
670,542 |
1,689 |
1.01% |
751,094 |
2,764 |
1.47% |
| Other Time Deposits |
374,346 |
1,043 |
1.11% |
428,815 |
1,392 |
1.30% |
702,866 |
3,528 |
2.01% |
| Total Interest Bearing
Deposits |
1,738,785 |
4,663 |
1.07% |
1,853,631 |
5,110 |
1.10% |
2,523,752 |
10,476 |
1.66% |
| |
|
|
|
|
|
|
|
|
|
| BORROWINGS: |
|
|
|
|
|
|
|
|
|
| FHLB Advances and Other Borrowings |
188,967 |
505 |
1.07% |
250,964 |
730 |
1.16% |
138,805 |
750 |
2.16% |
| Junior Subordinated Debentures |
87,321 |
494 |
2.26% |
87,321 |
489 |
2.24% |
87,321 |
664 |
3.04% |
| Total Borrowings |
276,288 |
999 |
1.45% |
338,285 |
1,219 |
1.44% |
226,126 |
1,414 |
2.50% |
| |
|
|
|
|
|
|
|
|
|
| TOTAL INTEREST BEARING
LIABILITIES |
$ 2,015,073 |
$ 5,662 |
1.12% |
$ 2,191,916 |
$ 6,329 |
1.16% |
$ 2,749,878 |
$ 11,890 |
1.73% |
| |
|
|
|
|
|
|
|
|
|
| NET INTEREST INCOME |
|
$ 27,335 |
|
|
$ 29,295 |
|
|
$ 29,239 |
|
| |
|
|
|
|
|
|
|
|
|
| NET INTEREST SPREAD |
|
|
4.20% |
|
|
4.34% |
|
|
3.49% |
| |
|
|
|
|
|
|
|
|
|
| NET INTEREST MARGIN |
|
|
4.42% |
|
|
4.53% |
|
|
3.72% |
| |
| * Tax equivalent ratios for
investment securities |
| |
| |
| WILSHIRE BANCORP, INC.
AND SUBSIDIARIES |
| AVERAGE BALANCES, AVERAGE
YIELDS EARNED AND AVERAGE RATES PAID |
| (dollars in thousands)
(unaudited) |
|
|
| |
For the Six
Months Ended |
|
| |
June 30,
2011 |
June 30,
2010 |
| |
Average |
Interest |
Average |
Average |
Interest |
Average |
| |
Balance |
Income/ |
Yield/ |
Balance |
Income/ |
Yield/ |
| |
|
Expense |
Rate |
|
Expense |
Rate |
| INTEREST EARNING ASSETS |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Real Estate Loans |
$ 1,938,990 |
$ 53,732 |
5.54% |
$ 2,045,150 |
$ 58,901 |
5.76% |
| Commercial Loans |
313,254 |
8,465 |
5.40% |
380,351 |
10,671 |
5.61% |
| Consumer Loans |
14,955 |
234 |
3.13% |
16,912 |
360 |
4.26% |
| Total Gross Loans |
2,267,199 |
62,431 |
5.51% |
2,442,413 |
69,932 |
5.73% |
| Loan Fees toward Yield |
|
1,798 |
|
|
1,451 |
|
| Allowance for Loan Losses & Unearned
Income |
(122,440) |
|
|
(78,699) |
|
|
| Net Loans |
2,144,759 |
64,229 |
5.99% |
2,363,714 |
71,383 |
6.04% |
| |
|
|
|
|
|
|
| INVESTMENT SECURITIES AND OTHER
INTEREST-EARNING ASSETS: |
|
|
|
|
|
|
| Investment Securities* |
333,865 |
4,139 |
2.76% |
656,526 |
10,371 |
3.34% |
| Federal Funds Sold |
80,214 |
253 |
0.63% |
144,851 |
676 |
0.93% |
| Total Investment Securities and
Other Earning Assets |
414,079 |
4,392 |
2.35% |
801,377 |
11,047 |
2.90% |
| |
|
|
|
|
|
|
| TOTAL INTEREST-EARNING
ASSETS |
$ 2,558,838 |
$ 68,621 |
5.40% |
$ 3,165,091 |
$ 82,430 |
5.25% |
| |
|
|
|
|
|
|
| INTEREST BEARING
LIABILITIES |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| INTEREST-BEARING
DEPOSITS: |
|
|
|
|
|
|
| Money Market |
$ 622,347 |
$ 2,811 |
0.90% |
$ 964,110 |
$ 7,563 |
1.57% |
| NOW |
23,725 |
43 |
0.36% |
22,249 |
55 |
0.49% |
| Savings |
85,838 |
1,207 |
2.81% |
74,869 |
1,203 |
3.21% |
| Time Deposits of $100,000 or More |
665,088 |
3,277 |
0.99% |
759,933 |
5,812 |
1.53% |
| Other Time Deposits |
398,892 |
2,435 |
1.22% |
689,396 |
7,017 |
2.04% |
| Total Interest Bearing
Deposits |
1,795,890 |
9,773 |
1.09% |
2,510,557 |
21,650 |
1.72% |
| |
|
|
|
|
|
|
| BORROWINGS: |
|
|
|
|
|
|
| FHLB Advances and Other Borrowings |
219,794 |
1,234 |
1.12% |
143,377 |
1,670 |
2.33% |
| Junior Subordinated Debentures |
87,321 |
983 |
2.25% |
87,321 |
1,313 |
3.01% |
| Total Borrowings |
307,115 |
2,217 |
1.44% |
230,698 |
2,983 |
2.59% |
| |
|
|
|
|
|
|
| TOTAL INTEREST BEARING
LIABILITIES |
$ 2,103,005 |
$ 11,990 |
1.14% |
$ 2,741,255 |
$ 24,633 |
1.80% |
| |
|
|
|
|
|
|
| NET INTEREST INCOME |
|
$56,631 |
|
|
$57,797 |
|
| |
|
|
|
|
|
|
| NET INTEREST SPREAD |
|
|
4.26% |
|
|
3.45% |
| |
|
|
|
|
|
|
| NET INTEREST MARGIN |
|
|
4.46% |
|
|
3.69% |
| |
| * Tax equivalent ratios for
investment securities |
CONTACT: Alex Ko, EVP & CFO
(213) 427-6560
www.wilshirebank.com
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