Wilshire Bancorp, Inc. (Nasdaq:WIBC), the holding company ("the
Company") for Wilshire State Bank ("the Bank"), today reported net
income available to common shareholders of $5.8 million, or $0.08
per diluted common share, for the quarter ended December 31, 2011.
This compares to a net loss available to common shareholders of
$40.3 million, or ($1.37) per diluted common share, for the same
period of the prior year, and net income available to common
shareholders of $10.2 million, or $0.14 per diluted common share,
for the third quarter of 2011. The decrease in earnings per share
from the third quarter of 2011 is attributable to a higher
effective tax rate recorded in the fourth quarter of 2011.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp,
said, "We are pleased to deliver another quarter of solid
profitability, which was driven by improved efficiencies and lower
credit costs. Compared to the third quarter of 2011, our pre-tax
income increased 8%, which reflects the increasing strength in our
core operations. We continue to make steady progress on improving
our asset quality, which resulted in a 22% decline in non-accrual
loans and a 68% decline in charge-offs compared to the prior
quarter.
"Our focus for 2012 is to prudently increase our marketing
efforts to resume the growth of our franchise. We are adding to our
business development staff and re-engaging our markets with more
active lending efforts, including re-opening three loan production
offices in Georgia, Washington, and Northern California. We are
optimistic that our increased loan production will generate higher
levels of interest income and gains on sales of loans this year,
which should enable us to further increase our level of
profitability as we move through 2012," said Mr. Yoo.
Q4 2011 Summary:
- Net income available to common shareholders of $5.8
million, or $0.08 per share
- Improvement in asset quality from Q3 2011 to Q4 2011
with a 22% decline in non-accrual loans and a 68% decline in
charge-offs
- Operating efficiency ratio improved to 52.4% from 55.7%
in Q3 2011
- Improved deposit mix with an overall increase in core
deposits led by a 9% increase in non-interest bearing
accounts
- Annualized return on average assets of 1.01% and return
on average equity of 8.72%
- All capital ratios strengthened from prior
quarter
STATEMENT OF OPERATIONS
Net Interest Income and Margin
Net interest income before provision for loan losses totaled
$25.2 million in the fourth quarter of 2011, a decrease of 4% from
$26.3 million in the fourth quarter of 2010, and a decrease of 1%
from $25.5 million in the third quarter of 2011.
Net interest margin was 4.17% in the fourth quarter of 2011,
compared to 3.72% in the fourth quarter of 2010 and 4.23% in the
third quarter of 2011. The decrease in net interest margin for the
fourth quarter of 2011 compared to the third quarter of 2011 was
primarily due to the reduction in investment yields as a result of
newly purchased investments at lower yields in combination with
increased prepayment speeds on MBS securities.
Loan yields increased to 5.58% for the fourth quarter of 2011
from 5.54% for the third quarter of 2011 mainly due to the
reduction in interest income reversals from non-accrual loans.
Total non-accrual loan interest reversals declined to $430 thousand
during the fourth quarter of 2011 compared to $812 thousand during
the previous quarter. The total cost of deposits continued to
decrease and was 0.80% for the fourth quarter of 2011, down from
0.83% for the third quarter of 2011 and down from 1.04% for the
fourth quarter of 2010. The decrease from both periods was
primarily due to an increase in non-interest bearing deposits.
Net interest margin for the twelve months ended December 31,
2011 was 4.34%, an increase of 58 basis points compared to 3.76%
for the same period in 2010. Loan yield for the twelve months ended
December 31, 2011 was 5.54%, down from 5.61% for the twelve months
ended December 31, 2010. Total cost of interest bearing deposits
was 1.07% for 2011 compared to 1.56% for 2010. The increase in net
interest margin for the full year was largely the result of a
reduction in cost of deposits and borrowings.
Non-Interest Income
Total non-interest income was $5.8 million for the quarter ended
December 31, 2011, compared to $7.7 million for the previous
quarter and $6.1 million for the quarter ended December 31, 2010.
The decline in non-interest income from the prior quarter is
primarily due to lower gains on sales of loans. The Company
decided to retain all but a few of its SBA loans during the fourth
quarter of 2011 and recognize interest income, which resulted in
the lower gains on sales of loans. The $733 thousand in gains
on sales of loans recognized in the fourth quarter of 2011 was
attributable to gains on sales of commercial real estate ("CRE")
loans totaling $643 thousand and gains from mortgage and SBA loans
totaling $70 thousand and $20 thousand, respectively.
Other non-interest income was $2.2 million for the quarter ended
December 31, 2011, compared to $2.7 million in the previous quarter
and $972 thousand for the fourth quarter of 2010. The decrease
in other non-interest income from the previous quarter was
primarily attributable to a reduction in miscellaneous income while
the increase in other non-interest income from the fourth quarter
of 2010 was a result of an increase in loan related servicing
fees.
Non-Interest Expense
Total non-interest expense was $16.2 million for the fourth
quarter of 2011, compared with $18.5 million for the prior quarter
and $19.7 million for the fourth quarter of 2010. The decrease
in total non-interest expense compared to both prior periods was
primarily due to lower other non-interest expenses, as discussed
below.
Total salaries and employee benefits were $7.1 million in the
fourth quarter of 2011, compared with $6.8 million in the prior
quarter and $7.2 million in the fourth quarter of 2010. The
increase from the prior quarter is primarily due to the winter
incentive bonus that was awarded to employees during the fourth
quarter of 2011.
Other non-interest expenses for the fourth quarter of 2011
totaled $6.5 million, compared with $9.0 million in the third
quarter of 2011 and $9.8 million in the fourth quarter of 2010. The
decrease in other non-interest expenses from the prior quarter and
previous year was primarily attributable to lower expenses related
to other real estate owned ("OREO") and lower legal fees.
The Company's operating efficiency ratio improved to 52.4% for
the quarter ended December 31, 2011 from 55.7% for the quarter
ended September 30, 2011 and 60.8% for the quarter ended December
31, 2010.
Tax Provision
For the fourth quarter of 2011 the Company recorded income tax
provisions totaling $6.5 million on pretax income of $13.2 million
representing a tax rate of 49.1%, compared to income tax provision
of $1.1 million on pretax income of $12.2 million, representing an
effective tax rate of 9.1% for the previous quarter. The
quarter-to-quarter increase in tax provision was the result of
discrete reversal of deferred tax assets related to net operating
loss carryback due to higher than expected income, in addition to
changes in other comprehensive income from unrealized gains on
investment securities. The Company does not expect these
non-recurring tax adjustments to impact tax provision in future
quarters.
BALANCE SHEET
Total gross loans were $1.99 billion at December 31, 2011,
compared to $2.00 billion at September 30, 2011. The $11.5
million decline in gross loans during the fourth quarter of 2011
was mostly due to the decrease in covered loans which declined
$11.4 million compared to a decline of $117 thousand in non-covered
legacy loans.
As previously disclosed, upon acquiring certain assets and
liabilities of the former Mirae Bank, the Company entered into a
loss sharing agreement with the FDIC whereby the FDIC has agreed to
share in losses on assets covered under the agreement. The
assets covered by the loss sharing agreement include loans and
foreclosed loan collateral existing on June 26, 2009 and acquired
from Mirae Bank. As a result, loans acquired through the
acquisition of Mirae Bank are identified as "covered" loans, and
those that were originated at Wilshire are "non-covered" loans or
"legacy Wilshire" loans. The following table shows "covered"
and "non-covered" gross loans by loan type:
Loan Categories
(Dollars In Thousands) |
Quarter Ended |
Gross Non-Covered
Loans |
Dec 31, 2011 |
Sep 30, 2011 |
Jun 30, 2011 |
Mar 31, 2011 |
Dec 31, 2010 |
Construction |
$ 61,832 |
$ 58,988 |
$ 70,304 |
$ 74,538 |
$ 72,258 |
Real Estate Secured |
1,490,504 |
1,501,297 |
1,548,559 |
1,725,298 |
1,757,328 |
Commercial &
Industrial |
253,092 |
244,248 |
260,990 |
274,392 |
276,739 |
Consumer |
15,001 |
16,013 |
15,350 |
14,587 |
15,574 |
Total Non-Covered Gross
Loans |
$ 1,820,429 |
$ 1,820,546 |
$ 1,895,203 |
$ 2,088,815 |
$ 2,121,899 |
|
|
|
|
|
|
Gross Covered
Loans |
|
|
|
|
|
Real Estate Secured |
$ 137,144 |
$ 143,719 |
$ 154,020 |
$ 154,655 |
$ 159,699 |
Commercial &
Industrial |
28,267 |
33,103 |
38,170 |
45,024 |
49,680 |
Consumer |
79 |
86 |
96 |
104 |
111 |
Total Covered Gross Loans |
$ 165,490 |
$ 176,908 |
$ 192,286 |
$ 199,783 |
$ 209,490 |
|
|
|
|
|
|
Total Gross
Loans |
|
|
|
|
|
Construction |
$ 61,832 |
$ 58,988 |
$ 70,304 |
$ 74,538 |
$ 72,258 |
Real Estate Secured |
1,627,648 |
1,645,016 |
1,702,579 |
1,879,953 |
1,917,027 |
Commercial &
Industrial |
281,359 |
277,351 |
299,160 |
319,416 |
326,419 |
Consumer |
15,080 |
16,099 |
15,446 |
14,691 |
15,685 |
Total Gross Loans |
$ 1,985,919 |
$ 1,997,454 |
$ 2,087,489 |
$ 2,288,598 |
$ 2,331,389 |
Loan originations for the fourth quarter of 2011 totaled $109.6
million. This compares to total loan originations of $97.5 million
for the third quarter of 2011 and $169.1 million for the fourth
quarter of 2010. The increase in loan originations from the prior
quarter was attributable to a greater emphasis on commercial and
industrial and SBA loan production, in addition to higher loan
demand.
The following table shows quarterly loan originations by loan
type:
|
Quarter Ended |
LOAN
ORIGINATIONS (Dollars In Thousands) |
Dec 31,
2011 |
Sep 30,
2011 |
Dec 31,
2010 |
|
|
|
|
|
|
|
Real Estate Secured |
$ 22,608 |
21% |
$ 24,493 |
25% |
$ 85,601 |
51% |
Commercial &
Industrial |
40,517 |
37% |
22,049 |
23% |
17,664 |
11% |
Consumer |
162 |
0% |
1,510 |
2% |
9,150 |
5% |
SBA Loans |
29,034 |
26% |
20,746 |
21% |
47,735 |
28% |
Home Mortgage Loans |
17,292 |
16% |
28,736 |
29% |
8,901 |
5% |
Total Loan Originations |
$ 109,613 |
100% |
$ 97,534 |
100% |
$ 169,051 |
100% |
Total cash and cash equivalents increased 30% to $325.3 million
at December 31, 2011, from $249.9 million at September 30, 2011 and
increased 64% from $198.5 million at December 31, 2010. The
increase was due to an inflow of deposits during the fourth quarter
of 2011 which resulted in the placement of funds into short-term
instruments on a temporary basis.
Total OREO was $8.2 million at December 31, 2011, compared with
$9.3 million at September 30, 2011 and $15.0 million at December
31, 2010. Outflow from OREO in the fourth quarter of 2011
consisted of 10 sold properties totaling approximately $3.1
million. Inflow to OREO in the fourth quarter of 2011 consisted of
10 properties totaling approximately $3.5 million. The remaining
decline in OREO during the fourth quarter was a result of
write-downs in value of approximately $1.5 million.
Total deposits were $2.20 billion at December 31, 2011, an
increase of 2% from $2.15 billion at September 30, 2011. The
increase in total deposits was primarily driven by a 9% increase in
non-interest bearing demand deposits, which represented 23.2% of
total deposits at December 31, 2011 compared to 21.8% at September
31, 2011. During 2011, total deposits decreased from $2.46 billion
at December 31, 2010 to $2.20 billion at December 31,
2011. The decrease of $258.6 million was the result of
management's planned action to reduce high cost deposits during the
first half of 2011.
During the fourth quarter of 2011, all of the Company's net
deferred tax assets decreased to zero as the Company moved the
realizable net operating loss carrybacks from 2008 and 2009 to tax
receivables. This transaction was a result of the Company's request
of tax refunds from the Internal Revenue Service. Now that the
Company expects tax refunds in the amount of the deferred tax
assets previously recorded, the amount has been transferred to
income tax receivables included in other assets.
CREDIT QUALITY
The Company's credit quality metrics continued to improve during
the fourth quarter of 2011, highlighted by a 22% decrease in
non-accrual loans and a 68% decrease in charge-offs compared to the
prior quarter. As a result of the improved credit quality
metrics, the Company's provision for loan losses declined to $1.5
million for the fourth quarter of 2011, down from $2.5 million for
the prior quarter and $83.6 million for the fourth quarter of
2010.
Despite the reduced provision for loan losses, the Company's
coverage ratios remained relatively stable from the end of the
prior quarter. The allowance for loan losses totaled $103.0
million, or 5.19% of gross loans at December 31, 2011, compared to
$105.3 million, or 5.27% of gross loans, at September 30,
2011. The coverage ratio of the allowance for loan losses to
non-performing assets was 198% at December 31, 2011, compared with
160% at September 30, 2011. Allowance coverage of legacy Wilshire
loans was 5.66% at December 31, 2011, compared with 5.78% at
September 30, 2011.
Note Sales
The Company sold $21.3 million in held-for-sale CRE loans
(excluding SBA or residential mortgage loans) during the fourth
quarter of 2011. All of the loans were sold on an individual basis
and had an average discount to their principal balance of
32.8%. Loans held-for-sale sold during the quarter were all
non-accrual loans at the end of the third quarter of 2011. All
of loans held-for-sale sold were previously marked down to their
fair values during previous quarters. During the fourth quarter,
the Bank was able to record a net gain on sale of loans totaling
$733 thousand even with only $20 thousand in gains from SBA loan
sales.
Non-Accrual Loans
At December 31, 2011, total non-covered non-accrual loans
declined to $29.8 million, or 1.63% of gross non-covered loans,
compared to $39.5 million, or 2.18% of non-covered loans, at
September 30, 2011.
The following 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 |
Dec 31, 2011 |
Sep 30, 2011 |
Jun 30, 2011 |
Mar 31, 2011 |
Dec 31, 2010 |
Construction |
$ 12,548 |
$ 316 |
$ 12,000 |
$ -- |
$ -- |
Real Estate Secured |
15,696 |
37,454 |
46,447 |
60,363 |
59,571 |
Commercial &
Industrial |
1,573 |
1,764 |
808 |
1,695 |
1,284 |
Consumer |
-- |
-- |
144 |
11 |
27 |
Total Non-Covered Non-Accrual
Loans |
$ 29,817 |
$ 39,534 |
$ 59,399 |
$ 62,069 |
$ 60,882 |
|
|
|
|
|
|
Covered
Loans |
|
|
|
|
|
Real Estate Secured |
$ 13,392 |
$ 15,322 |
$ 16,392 |
$ 16,269 |
$ 8,005 |
Commercial &
Industrial |
623 |
1,609 |
2,151 |
1,795 |
2,345 |
Total Covered Non-Accrual
Loans |
$ 14,015 |
$ 16,931 |
$ 18,543 |
$ 18,064 |
$ 10,350 |
|
|
|
|
|
|
Total Non-Accrual
Loans |
|
|
|
|
|
Construction |
$ 12,548 |
$ 316 |
$ 12,000 |
$ -- |
$ -- |
Real Estate Secured |
29,088 |
52,776 |
62,839 |
76,632 |
67,576 |
Commercial &
Industrial |
2,196 |
3,373 |
2,959 |
3,490 |
3,629 |
Consumer |
-- |
-- |
144 |
11 |
27 |
Total Non-Accrual Loans |
$ 43,832 |
$ 56,465 |
$ 77,942 |
$ 80,133 |
$ 71,232 |
The decrease in non-accrual loans is attributable to the sale of
$21.3 million of non-accrual loans in addition to a decline in
inflows into non-accrual status. Total allowance as a percentage of
legacy non-accrual loans increased from 266% at the end of the
third quarter of 2011 to 345% at the end of the fourth quarter of
2011.
The inflow into total (covered and non-covered) non-accrual
loans was $17.9 million in the fourth quarter of 2011, a slight
increase from inflow of $17.1 million in the third quarter of 2011.
Total outflow from total non-accrual loans was $30.5 million in the
fourth quarter of 2011, compared with $38.6 million in the third
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 December
31, 2011 totaled $54.7 million, compared with $65.7 million at
September 30, 2011. The decrease in impaired loans during the
fourth quarter of 2011 is largely attributable to note sales. Total
inflows into impaired loans were $19.2 million in the fourth
quarter of 2011, compared to $18.2 million in the third quarter of
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 |
Dec 31, 2011 |
Sep 30, 2011 |
Jun 30, 2011 |
Mar 31, 2011 |
Dec 31, 2010 |
Construction |
$ 12,548 |
$ 316 |
$ 12,000 |
$ -- |
$ -- |
Real Estate Secured |
37,424 |
60,365 |
74,845 |
149,402 |
93,452 |
Commercial & Industrial |
4,754 |
4,978 |
4,216 |
5,456 |
5,649 |
Consumer |
-- |
-- |
136 |
-- |
27 |
Total Non-Covered Impaired
Loans |
$ 54,726 |
$ 65,659 |
$ 91,197 |
$ 154,858 |
$ 99,128 |
|
|
|
|
|
|
Covered
Loans |
|
|
|
|
|
Real Estate Secured |
$ 14,175 |
$ 16,169 |
$ 19,236 |
$ 18,256 |
$ 15,120 |
Commercial & Industrial |
1,718 |
2,380 |
2,922 |
3,332 |
4,216 |
Total Covered Impaired
Loans |
$ 15,893 |
$ 18,549 |
$ 22,158 |
$ 21,588 |
$ 19,336 |
|
|
|
|
|
|
Total Impaired
Loans |
|
|
|
|
|
Construction |
$ 12,548 |
$ 316 |
$ 12,000 |
$ -- |
$ -- |
Real Estate Secured |
51,599 |
76,534 |
94,081 |
167,658 |
108,572 |
Commercial & Industrial |
6,472 |
7,358 |
7,138 |
8,788 |
9,865 |
Consumer |
-- |
-- |
136 |
-- |
27 |
Total Impaired Loans |
$ 70,619 |
$ 84,208 |
$ 113,355 |
$ 176,446 |
$ 118,464 |
Troubled Debt Restructured Loans
At December 31, 2011, total non-covered troubled debt
restructured loans or "TDR loans", were $14.7 million, compared to
$13.1 million at September 30, 2011. The increase from the
prior quarter was due to a modest increase in the number of
requests for loan modifications, combined with a lower level of TDR
note sales.
Total TDR loans by loan category are shown in the table
below:
TROUBLED
DEBT RESTRUCTURED LOANS (Dollars In Thousands) |
(net of SBA guaranteed
portions) |
|
Quarter Ended |
Non-Covered
Loans |
Dec 31, 2011 |
Sep 30, 2011 |
Jun 30, 2011 |
Mar 31, 2011 |
Dec 31, 2010 |
Real Estate Secured |
$ 11,460 |
$ 10,568 |
$ 18,733 |
$ 31,540 |
$ 36,187 |
Commercial &
Industrial |
3,235 |
2,538 |
3,529 |
4,117 |
3,574 |
Total Non-Covered TDR
Loans |
$ 14,695 |
$ 13,106 |
$ 22,262 |
$ 35,657 |
$ 39,761 |
|
|
|
|
|
|
Covered
Loans |
|
|
|
|
|
Real Estate Secured |
$ 6,377 |
$ 6,493 |
$ 8,518 |
$ 7,676 |
$ 7,115 |
Commercial &
Industrial |
1,311 |
1,429 |
1,473 |
1,844 |
1,870 |
Total Covered TDR Loans |
$ 7,688 |
$ 7,922 |
$ 9,991 |
$ 9,520 |
$ 8,985 |
|
|
|
|
|
|
Total TDRs
Loans |
|
|
|
|
|
Real Estate Secured |
$ 17,837 |
$ 17,061 |
$ 27,251 |
$ 39,216 |
$ 43,302 |
Commercial &
Industrial |
4,546 |
3,967 |
5,002 |
5,961 |
5,444 |
Total TDR Loans |
$ 22,383 |
$ 21,028 |
$ 32,253 |
$ 45,177 |
$ 48,746 |
Of the total $22.4 million in TDR loans at December 31, 2011,
$7.3 million in TDR loans were also classified as non-accrual, of
which $1.5 million was non-covered. The remaining TDR loans were
performing in accordance with their modified terms.
Loan Delinquencies (Excluding Non-Accrual
Loans)
At December 31, 2011, total non-covered loan delinquencies were
$14.7 million, compared with $7.3 million at September 30,
2011. The increase in delinquencies was primarily attributable
to one CRE participation loan totaling $8.3million. Excluding
this participation loan, total inflow into loan delinquencies was
$5.4 million in the fourth quarter of 2011, compared with $4.3
million in the prior quarter.
Delinquent loans by days past due 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 |
Dec 31, 2011 |
Sep 30, 2011 |
Jun 30, 2011 |
Mar 31, 2011 |
Dec 31, 2010 |
30 - 59 Days Past Due |
$ 4,890 |
$ 4,146 |
$ 11,782 |
$ 8,680 |
$ 15,641 |
60 - 89 Days Past Due |
9,762 |
2,963 |
16,594 |
26,389 |
11,007 |
90 Days, and still
accruing |
-- |
190 |
-- |
-- |
-- |
Total Non-Covered Delinquent
Loans |
$ 14,652 |
$ 7,299 |
$ 28,376 |
$ 35,069 |
$ 26,648 |
|
|
|
|
|
|
Covered
Loans |
|
|
|
|
|
30 - 59 Days Past Due |
$ 355 |
$ 572 |
$ 3,303 |
$ 5,166 |
$ 4,254 |
60 - 89 Days Past Due |
513 |
186 |
1,227 |
968 |
3,566 |
90 Days, and still
accruing |
-- |
-- |
-- |
-- |
-- |
Total Covered Delinquent
Loans |
$ 868 |
$ 758 |
$ 4,530 |
$ 6,134 |
$ 7,820 |
|
|
|
|
|
|
Total Delinquent
Loans |
|
|
|
|
|
30 - 59 Days Past Due |
$ 5,245 |
$ 4,718 |
$ 15,085 |
$ 13,846 |
$ 19,895 |
60 - 89 Days Past Due |
10,275 |
3,149 |
17,821 |
27,357 |
14,573 |
90 Days, and still
accruing |
-- |
190 |
-- |
-- |
-- |
Total Delinquent Loans |
$ 15,520 |
$ 8,057 |
$ 32,906 |
$ 41,203 |
$ 34,468 |
Of the total $15.5 million in delinquent loans at December 31,
2011, $13.0 million was made up of delinquent real estate secured
loans and $2.5 million consisted of delinquent commercial and
industrial loans.
Loan Classifications
At December 31, 2011, total non-covered classified loans (loans
graded substandard, doubtful, and loss) were $142.3 million,
compared with $123.5 million at September 30,
2011. Non-covered criticized loans (loans graded special
mention) were $119.4million at December 31, 2011, compared with
$159.2 million at September 30, 2011.
The increase in non-covered classified loans was primarily due
to the downgrading of several loans from special mention to
substandard during the fourth quarter of 2011. The downgrades
were primarily due to decreases in cash flows at the underlying
businesses.
The Company's ratio of legacy classified assets to Tier 1
capital plus reserves percentage was 32.2% at December 31, 2011.
The requirement for the legacy classified assets to Tier 1 capital
plus reserves ratio for the Bank stated in the memorandum of
understanding ("MOU") with its regulators is a maximum of 50.0%,
with which the Bank is in compliance.
Loan balances broken down by classification are reflected in the
table below:
LOAN
CLASSIFICATIONS (Dollars In Thousands) |
|
Quarter Ended |
Non-Covered
Loans |
Dec 31, 2011 |
Sep 30, 2011 |
Jun 30, 2011 |
Mar 31, 2011 |
Dec 31, 2010 |
Special Mention |
$ 119,434 |
$ 159,248 |
$ 156,249 |
$ 180,656 |
$ 102,990 |
Substandard |
136,559 |
108,616 |
140,645 |
207,422 |
216,283 |
Doubtful |
5,769 |
14,911 |
17,367 |
10,231 |
11,306 |
Total Non-Covered Gross
Loans |
$ 261,762 |
$ 282,775 |
$ 314,261 |
$ 398,309 |
$ 330,579 |
|
|
|
|
|
|
Covered
Loans |
|
|
|
|
|
Special Mention |
$ 17,438 |
$ 14,342 |
$ 12,639 |
$ 20,554 |
$ 15,618 |
Substandard |
22,487 |
25,180 |
35,006 |
31,755 |
30,836 |
Doubtful |
10,578 |
8,511 |
5,806 |
2,112 |
2,921 |
Total Covered Gross Loans |
$ 50,503 |
$ 48,033 |
$ 53,451 |
$ 54,421 |
$ 49,375 |
|
|
|
|
|
|
Total
Loans |
|
|
|
|
|
Special Mention |
$ 136,872 |
$ 173,590 |
$ 168,888 |
$ 201,210 |
$ 118,608 |
Substandard |
159,046 |
133,796 |
175,651 |
239,177 |
247,119 |
Doubtful |
16,347 |
23,422 |
23,173 |
12,343 |
14,227 |
Total Gross Loans |
$ 312,265 |
$ 330,808 |
$ 367,712 |
$ 452,730 |
$ 379,954 |
Loan Charge-offs
Non-covered loan charge-offs for the fourth quarter of 2011
totaled $3.4 million, compared to $11.7 million in the third
quarter of 2011. The decline in charge-offs reflects the
overall improvement in the quality of the loan portfolio following
the Company's efforts to reduce its level of problem loans over the
past several quarters.
Charge-offs by loan type is reflected in the table
below:
LOAN
CHARGE-OFFS (Dollars In Thousands) |
|
Quarter Ended |
Non-Covered
Loans |
Dec 31, 2011 |
Sep 30, 2011 |
Jun 30, 2011 |
Mar 31, 2011 |
Dec 31, 2010 |
Construction |
$ -- |
$ -- |
$ 3,000 |
$ 805 |
$ 401 |
Real Estate Secured |
829 |
8,507 |
9,012 |
39,062 |
60,317 |
Commercial &
Industrial |
2,543 |
2,973 |
2,185 |
1,151 |
10,487 |
Consumer |
1 |
217 |
9 |
19 |
14 |
Total Non-Covered Charge-Offs
Loans |
$ 3,373 |
$ 11,697 |
$ 14,206 |
$ 41,037 |
$ 71,219 |
|
|
|
|
|
|
Covered
Loans |
|
|
|
|
|
Real Estate Secured |
426 |
436 |
16 |
171 |
252 |
Commercial &
Industrial |
268 |
384 |
(48) |
489 |
431 |
Total Covered Charge-Offs
Loans |
$ 694 |
$ 820 |
$ (32) |
$ 660 |
$ 683 |
|
|
|
|
|
|
Total Loan
Charge-Offs |
|
|
|
|
|
Construction |
$ -- |
$ -- |
$ 3,000 |
$ 805 |
$ 401 |
Real Estate Secured |
1,255 |
8,943 |
9,028 |
39,233 |
60,569 |
Commercial &
Industrial |
2,811 |
3,357 |
2,137 |
1,640 |
10,918 |
Consumer |
1 |
217 |
9 |
19 |
14 |
Total Charge-Offs Loans |
$ 4,067 |
$ 12,517 |
$ 14,174 |
$ 41,697 |
$ 71,902 |
Capital Ratios
As of December 31, 2011, the Company's Tier 1 Leverage ratio was
13.86%. The minimum required Tier 1 capital ratio for the Bank
stated in the MOU is 10%, with 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:
|
|
Well Capitalized |
Total Excess Above |
|
|
Regulatory |
Well Capitalized |
(Dollars In thousands, except per share
info) |
Dec 31,
2011 |
Requirements |
Requirements |
|
|
|
|
Tier 1 Leverage Capital Ratio |
13.86% |
5.00% |
$ 235,961 |
Tier 1 Risk-Based Capital Ratio |
19.59% |
6.00% |
255,993 |
Total Risk-Based Capital Ratio |
20.89% |
10.00% |
205,212 |
Tangible Common Equity To Tangible
Assets |
8.95% |
N/A |
N/A |
Tangible Common Equity Per Common Share |
$ 3.37 |
N/A |
N/A |
CONFERENCE CALL
Management will host its quarterly conference call on January
24, 2012, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals
are invited to participate in the call by dialing 866-713-8307
(domestic number) or 617-597-5307 (international number) and
entering passcode #86489960.
COMPANY INFORMATION
Headquartered in Los Angeles, Wilshire State Bank operates 24
branch offices in California, Texas, New Jersey and New York, and
eight loan production offices in Dallas and Houston, TX, Atlanta,
GA, Aurora, CO, Annandale, VA, Fort Lee, NJ, Newark, CA, and
Bellevue, WA, and is an SBA preferred lender nationwide. Wilshire
State Bank is a community bank with a focus on commercial real
estate lending and general commercial banking, with its primary
market encompassing the multi-ethnic populations of the Los Angeles
Metropolitan area. The Company'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 the Company'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, the Company's 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 the
Company's with the Securities and Exchange Commission.
|
|
|
|
|
|
CONSOLIDATED BALANCE
SHEET |
|
|
|
|
|
(dollars in thousands) (unaudited) |
December 31, |
September 30, |
Three Months |
December 31, |
Twelve Months |
|
2011 |
2011 |
% Change |
2010 |
% Change |
ASSETS: |
|
|
|
|
|
Cash and Due from Banks |
$ 155,245 |
$ 99,875 |
55% |
$ 68,530 |
127% |
Federal Funds Sold and Other Cash
Equivalents |
170,005 |
150,005 |
13% |
130,005 |
31% |
Total Cash and Cash
Equivalents |
325,250 |
249,880 |
30% |
198,535 |
64% |
|
|
|
|
|
|
Investment Securities Available For Sale |
320,064 |
356,148 |
-10% |
316,623 |
1% |
Investment Securities Held To Maturity |
66 |
70 |
-6% |
85 |
-22% |
Total Investment
Securities |
320,130 |
356,218 |
-10% |
316,708 |
1% |
Loans: |
|
|
|
|
|
|
|
|
|
|
|
Loans Held For Sale |
53,814 |
70,652 |
-24% |
17,098 |
215% |
|
|
|
|
|
|
Real Estate
Construction |
61,213 |
58,275 |
5% |
71,596 |
-15% |
Residential Real
Estate |
98,262 |
94,591 |
4% |
92,901 |
6% |
Commercial Real
Estate |
1,478,254 |
1,478,281 |
0% |
1,804,731 |
-18% |
Commercial and
Industrial |
274,878 |
274,469 |
0% |
324,627 |
-15% |
Consumer |
15,065 |
16,082 |
-6% |
15,671 |
-4% |
Total Loans Receivable |
1,927,672 |
1,921,698 |
0% |
2,309,526 |
-17% |
Allowance For Loan Losses |
(102,982) |
(105,306) |
-2% |
(110,953) |
-7% |
Total Loans, Net of Allowance for
Loan Losses |
1,878,504 |
1,887,044 |
0% |
2,215,671 |
-15% |
|
|
|
|
|
|
Accrued Interest Receivable |
8,118 |
7,739 |
5% |
10,581 |
-23% |
Due from Customers on Acceptances |
414 |
255 |
62% |
368 |
13% |
Other Real Estate Owned |
8,221 |
9,284 |
-11% |
14,983 |
-45% |
Premises and Equipment |
12,612 |
13,053 |
-3% |
13,330 |
-5% |
Federal Home Loan Bank (FHLB) Stock, at
Cost |
15,523 |
16,276 |
-5% |
18,531 |
-16% |
Cash Surrender Value of Life Insurance |
19,888 |
19,735 |
1% |
18,663 |
7% |
Investment in affordable housing
partnerships |
37,676 |
33,147 |
14% |
28,186 |
34% |
Deferred Income Taxes |
-- |
17,143 |
-100% |
46,357 |
-100% |
Servicing Assets |
8,798 |
9,052 |
-3% |
7,331 |
20% |
Goodwill |
6,675 |
6,675 |
0% |
6,675 |
0% |
FDIC Indemnification |
21,922 |
23,481 |
-7% |
28,525 |
-23% |
Other Assets |
33,123 |
31,736 |
4% |
46,081 |
-28% |
TOTAL ASSETS |
$ 2,696,854 |
$ 2,680,718 |
1% |
$ 2,970,525 |
-9% |
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY: |
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
Non-interest Bearing Demand Deposits |
$ 511,467 |
$ 468,596 |
9% |
$ 467,067 |
10% |
Savings and Interest Checking |
123,051 |
116,044 |
6% |
106,115 |
16% |
Money Market Deposits |
572,452 |
551,152 |
4% |
669,486 |
-14% |
Time Deposits in denomination of $100,000 or
more |
647,537 |
656,847 |
-1% |
699,503 |
-7% |
Other Time Deposits |
347,802 |
356,875 |
-3% |
518,769 |
-33% |
Total Deposits |
2,202,309 |
2,149,514 |
2% |
2,460,940 |
-11% |
|
|
|
|
|
|
FHLB borrowings and Federal Funds
Purchased |
60,000 |
110,000 |
-45% |
158,011 |
-62% |
Acceptance Outstanding |
414 |
255 |
62% |
368 |
13% |
Junior Subordinated Debentures |
87,321 |
87,321 |
0% |
87,321 |
0% |
Accrued Interest Payable |
3,281 |
2,728 |
20% |
4,092 |
-20% |
Other Liabilities |
33,947 |
29,059 |
17% |
30,631 |
11% |
Total Liabilities |
2,387,272 |
2,378,877 |
0% |
2,741,363 |
-13% |
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY: |
|
|
|
|
|
Preferred Stock |
61,000 |
60,859 |
0% |
60,450 |
1% |
Common Stock |
164,711 |
164,650 |
0% |
55,601 |
196% |
Retained Earnings |
77,110 |
71,292 |
8% |
111,099 |
-31% |
Accumulated Other Comprehensive Income |
6,761 |
5,040 |
34% |
2,012 |
236% |
Total Stockholders'
Equity |
309,582 |
301,841 |
3% |
229,162 |
35% |
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY |
$ 2,696,854 |
$ 2,680,718 |
1% |
$ 2,970,525 |
-9% |
|
|
CONSOLIDATED
STATEMENT OF OPERATIONS |
(dollars in thousands, except per
share data) (unaudited) |
|
Quarter Ended |
|
Quarter Ended |
|
December 31, 2011 |
September 30, 2011 |
% Change |
December 31, 2010 |
% Change |
|
|
|
|
|
|
INTEREST INCOME |
|
|
|
|
|
Interest and Fees on Loans |
$ 28,512 |
$ 28,966 |
-2% |
$ 32,193 |
-11% |
Interest on Investment
Securities |
1,387 |
1,651 |
-16% |
1,551 |
-11% |
Interest on Federal Funds
Sold |
486 |
340 |
43% |
476 |
2% |
Total Interest Income |
30,385 |
30,957 |
-2% |
34,220 |
-11% |
|
|
|
|
|
|
INTEREST EXPENSE |
|
|
|
|
|
Deposits |
4,307 |
4,461 |
-3% |
6,758 |
-36% |
FHLB Advances and Other
Borrowings |
857 |
974 |
-12% |
1,194 |
-28% |
Total Interest Expense |
5,164 |
5,435 |
-5% |
7,952 |
-35% |
|
|
|
|
|
|
Net Interest Income Before
Provision for Losses on Loans |
|
|
|
|
|
and Loan
Commitments |
25,221 |
25,522 |
-1% |
26,268 |
-4% |
Provision for Losses on Loans
and Loan Commitments |
1,500 |
2,500 |
-40% |
83,600 |
-98% |
Net Interest Income (Loss)
After Provision for Losses on Loans |
|
|
|
|
|
and Loan
Commitments |
23,721 |
23,022 |
3% |
(57,332) |
-141% |
|
|
|
|
|
|
NONINTEREST INCOME |
|
|
|
|
|
Service Charges on
Deposits |
3,152 |
3,189 |
-1% |
3,034 |
4% |
Loans Held For Sale
Valuation |
(366) |
(394) |
-7% |
-- |
0% |
Gain on Sales of Loans,
Net |
733 |
2,143 |
-66% |
2,059 |
-64% |
Gain on Sale of Investment
Securities |
4 |
52 |
-92% |
40 |
-90% |
Other |
2,234 |
2,669 |
-16% |
972 |
130% |
Total Noninterest
Income |
5,757 |
7,659 |
-25% |
6,105 |
-6% |
|
|
|
|
|
|
NONINTEREST EXPENSES |
|
|
|
|
|
Salaries and Employee
Benefits |
7,144 |
6,827 |
5% |
7,217 |
-1% |
Occupancy & Equipment |
1,894 |
1,899 |
0% |
1,936 |
-2% |
Data Processing |
697 |
710 |
-2% |
692 |
1% |
Other |
6,504 |
9,031 |
-28% |
9,838 |
-34% |
Total Noninterest
Expenses |
16,239 |
18,467 |
-12% |
19,683 |
-17% |
|
|
|
|
|
|
Income (Loss) Before Income
Taxes |
13,239 |
12,214 |
8% |
(70,910) |
-119% |
Income Taxes Provision
(Benefit) |
6,503 |
1,112 |
485% |
(31,521) |
-121% |
NET INCOME (LOSS) |
$ 6,736 |
$ 11,102 |
-39% |
$ (39,389) |
-117% |
|
|
|
|
|
|
Preferred Stock Cash Dividend
and Accretion of |
|
|
|
|
|
Preferred Stock Discount |
918 |
916 |
0% |
910 |
1% |
NET INCOME (LOSS) AVAILABLE TO COMMON
SHAREHOLDERS |
$ 5,818 |
$ 10,186 |
-43% |
$ (40,299) |
-114% |
|
|
|
|
|
|
PER COMMON SHARE
INFORMATION |
|
|
|
|
|
Basic Income (Loss) Per Common
Share |
$ 0.08 |
$ 0.14 |
-43% |
$ (1.37) |
-106% |
Diluted Income (Loss)
Per Common Share |
$ 0.08 |
$ 0.14 |
-43% |
$ (1.37) |
-106% |
|
|
|
|
|
|
WEIGHTED-AVERAGE COMMON SHARES
OUTSTANDING: |
|
|
|
|
|
Basic |
71,291,614 |
71,291,614 |
|
29,486,635 |
|
Diluted |
71,309,985 |
71,306,813 |
|
29,486,635 |
|
|
|
CONSOLIDATED
STATEMENT OF OPERATIONS |
(dollars in thousands, except per
share data) (unaudited) |
|
Twelve Months Ended |
|
|
December 31, 2011 |
December 31, 2010 |
% Change |
|
|
|
|
INTEREST INCOME |
|
|
|
Interest and Fees on Loans |
$ 121,707 |
$ 140,028 |
-13% |
Interest on Investment
Securities |
7,177 |
14,726 |
-51% |
Interest on Federal Funds
Sold |
1,080 |
1,666 |
-35% |
Total Interest Income |
129,964 |
156,420 |
-17% |
|
|
|
|
INTEREST EXPENSE |
|
|
|
Deposits |
18,541 |
37,096 |
-50% |
FHLB Advances and Other
Borrowings |
4,048 |
5,608 |
-28% |
Total Interest Expense |
22,589 |
42,704 |
-47% |
|
|
|
|
Net Interest Income Before
Provision for Losses on Loans |
|
|
|
and Loan Commitments |
107,375 |
113,716 |
-6% |
Provision for Losses on Loans
and Loan Commitments |
59,100 |
150,800 |
-61% |
Net Interest Income (Loss)
After Provision for Losses on Loans |
|
|
|
and Loan Commitments |
48,275 |
(37,084) |
-230% |
|
|
|
|
NONINTEREST INCOME |
|
|
|
Service Charges on
Deposits |
12,570 |
12,545 |
0% |
Loans Held For Sale
Valuation |
(3,084) |
-- |
0% |
Gain on Sales
of Loans |
5,186 |
6,261 |
-17% |
Gain on Sale of Investment
Securities |
99 |
8,782 |
-99% |
Other |
9,034 |
8,324 |
9% |
Total Noninterest
Income |
23,805 |
35,912 |
-34% |
|
|
|
|
NONINTEREST EXPENSES |
|
|
|
Salaries and Employee
Benefits |
28,540 |
29,074 |
-2% |
Occupancy & Equipment |
7,826 |
7,984 |
-2% |
Data Processing |
2,892 |
2,721 |
6% |
Other |
29,527 |
27,597 |
7% |
Total Noninterest
Expenses |
68,785 |
67,376 |
2% |
|
|
|
|
Income (Loss) Before Income
Taxes |
3,295 |
(68,548) |
-105% |
Income Taxes Provision
(Benefit) |
33,625 |
(33,790) |
-200% |
NET LOSS |
$ (30,330) |
$ (34,758) |
-13% |
|
|
|
|
Preferred Stock Cash Dividend
and Accretion of |
|
|
|
Preferred Stock Discount |
3,658 |
3,626 |
1% |
NET LOSS TO COMMON
SHAREHOLDERS |
$ (33,988) |
$ (38,384) |
-11% |
|
|
|
|
PER COMMON SHARE
INFORMATION |
|
|
|
Basic Loss Per Common
Share |
$ (0.61) |
$ (1.30) |
-53% |
Diluted Loss Per Common
Share |
$ (0.61) |
$ (1.30) |
-53% |
|
|
|
|
WEIGHTED-AVERAGE COMMON SHARES
OUTSTANDING: |
|
|
|
Basic |
55,710,427 |
29,486,351 |
|
Diluted |
55,710,427 |
29,486,351 |
|
|
|
SUMMARY OF
FINANCIAL DATA |
(dollars in thousands, except per
share data) (unaudited) |
|
|
Quarter Ended |
|
AVERAGE
BALANCES |
December 31, 2011 |
|
September 30, 2011 |
|
December 31, 2010 |
|
Average Assets |
$ 2,678,357 |
|
$ 2,687,448 |
|
$ 3,135,483 |
|
Average Equity |
308,948 |
|
298,323 |
|
272,003 |
|
Average Net Loans |
1,868,385 |
|
1,926,310 |
|
2,332,921 |
|
Average Deposits |
2,145,128 |
|
2,154,234 |
|
2,594,300 |
|
Average Time Deposits in denomination of
$100,000 or more |
655,022 |
|
650,453 |
|
717,362 |
|
Average Interest Earning Assets |
2,439,374 |
|
2,437,040 |
|
2,846,537 |
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
AVERAGE
BALANCES |
December 31, 2011 |
|
|
|
December 31, 2010 |
|
Average Assets |
$ 2,758,788 |
|
|
|
$ 3,343,413 |
|
Average Equity |
264,666 |
|
|
|
273,896 |
|
Average Net Loans |
2,020,036 |
|
|
|
2,358,149 |
|
Average Deposits |
2,202,445 |
|
|
|
2,806,832 |
|
Average Time Deposits in denomination of
$100,000 or more |
658,862 |
|
|
|
745,139 |
|
Average Interest Earning Assets |
2,498,025 |
|
|
|
3,055,609 |
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
PROFITABILITY |
December 31, 2011 |
|
September 30, 2011 |
|
December 31, 2010 |
|
Annualized Return on Average Assets |
1.01% |
|
1.65% |
|
-5.02% |
|
Annualized Return on Average Equity |
8.72% |
|
14.89% |
|
-57.92% |
|
Efficiency Ratio |
52.42% |
|
55.66% |
|
60.80% |
|
Annualized Operating Expense/Average
Assets |
2.43% |
|
2.75% |
|
2.51% |
|
Annualized Net Interest Margin |
4.17% |
|
4.23% |
|
3.72% |
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
PROFITABILITY |
December 31, 2011 |
|
|
|
December 31, 2010 |
|
Annualized Return on Average Assets |
-1.10% |
|
|
|
-1.04% |
|
Annualized Return on Average Equity |
-11.46% |
|
|
|
-12.69% |
|
Efficiency Ratio |
52.44% |
|
|
|
45.03% |
|
Annualized Operating Expense/Average
Assets |
2.49% |
|
|
|
2.02% |
|
Annualized Net Interest Margin |
4.34% |
|
|
|
3.76% |
|
|
|
|
|
|
|
|
|
As Of |
|
DEPOSIT
COMPOSITION |
December 31, 2011 |
Fund |
September 30, 2011 |
Fund |
December 31, 2010 |
Fund |
Noninterest Bearing Demand Deposits |
23.2% |
0.00% |
21.8% |
0.00% |
19.0% |
0.00% |
Savings & Interest Checking |
5.6% |
2.24% |
5.4% |
2.26% |
4.3% |
2.34% |
Money Market Deposits |
26.0% |
0.85% |
25.6% |
0.92% |
27.2% |
0.91% |
Time Deposits of $100,000 or More |
29.4% |
0.93% |
30.6% |
0.95% |
28.4% |
1.17% |
Other Time Deposits |
15.8% |
1.07% |
16.6% |
1.07% |
21.1% |
1.66% |
Total Deposits |
100.0% |
0.80% |
100.0% |
0.83% |
100.0% |
1.04% |
|
|
|
|
|
|
|
|
As Of |
|
CAPITAL
RATIOS |
December 31, 2011 |
|
September 30, 2011 |
|
December 31, 2010 |
|
Tier 1 Leverage Ratio |
13.86% |
|
13.59% |
|
9.18% |
|
Tier 1 Risk-Based Capital Ratio |
19.59% |
|
18.75% |
|
12.61% |
|
Total Risk-Based Capital Ratio |
20.89% |
|
20.15% |
|
14.00% |
|
Total Shareholders' Equity |
$ 309,582 |
|
$ 301,841 |
|
$ 229,162 |
|
Book Value Per Common Share |
$ 3.49 |
|
$ 3.38 |
|
$ 5.72 |
|
Tangible Common Equity Per Common Share
* |
$ 3.37 |
|
$ 3.27 |
|
$ 5.44 |
|
Tangible Common Equity to Tangible Assets
** |
8.95% |
|
8.71% |
|
5.41% |
|
|
* 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 |
|
December 31, 2011 |
September 30, 2011 |
June 30, 2011 |
March 31, 2011 |
December 31, 2010 |
|
|
|
|
|
|
Balance at Beginning of Period |
$ 105,306 |
$ 110,995 |
$ 114,842 |
$ 110,953 |
$ 99,020 |
Provision for Losses on Loans |
1,500 |
3,180 |
10,123 |
44,800 |
82,600 |
Recoveries on loans previously
charged-off |
243 |
3,648 |
204 |
786 |
1,235 |
Less Charge-offs |
(4,067) |
(12,517) |
(14,174) |
(41,697) |
(71,902) |
Balance at End of Period |
$ 102,982 |
$ 105,306 |
$ 110,995 |
$ 114,842 |
$ 110,953 |
|
|
|
|
|
|
Net Loan Charge-offs/Average Total Loans |
0.20% |
0.46% |
0.67% |
1.84% |
3.03% |
Charge-offs/Average Total Loans |
0.22% |
0.65% |
0.68% |
1.88% |
3.08% |
Allowance for Loan Losses/Gross Loans |
5.19% |
5.27% |
5.32% |
5.02% |
4.76% |
Allowance for Loan Losses/Legacy Wilshire
Loans |
5.66% |
5.78% |
5.86% |
5.50% |
5.23% |
Allowance for Loan Losses/Non-accrual
Loans |
234.95% |
186.50% |
142.41% |
143.31% |
155.76% |
Allowance for Loan Losses/Legacy Non-accrual
Loans |
345.38% |
266.36% |
186.86% |
185.02% |
182.24% |
Allowance for Loan Losses/Non-performing
Loans |
234.95% |
185.87% |
142.41% |
143.31% |
155.76% |
Allowance for Loan Losses/Legacy
Non-performing Loans |
345.38% |
265.09% |
186.86% |
185.02% |
182.24% |
Allowance for Loan Losses/Non-performing
Assets |
197.84% |
159.70% |
128.41% |
129.55% |
128.69% |
Allowance for Loan Losses/Legacy
Non-performing Assets |
285.36% |
217.82% |
167.16% |
164.68% |
151.35% |
|
|
|
|
|
|
|
|
|
|
|
|
NON-PERFORMING
ASSETS |
|
|
|
|
|
(net of SBA guaranteed portions) |
Quarter Ended |
|
December 31, 2011 |
September 30, 2011 |
June 30, 2011 |
March 31, 2011 |
December 31, 2010 |
Nonaccrual Loans: |
|
|
|
|
|
Non-covered |
$ 29,817 |
$ 39,535 |
$ 59,399 |
$ 62,069 |
$ 60,882 |
Covered |
14,015 |
16,930 |
18,543 |
18,064 |
10,350 |
Total |
43,832 |
56,465 |
77,942 |
80,133 |
71,232 |
|
|
|
|
|
|
Loans 90 days or more past due and still
accruing: |
|
|
|
|
|
Non-covered |
-- |
190 |
-- |
-- |
-- |
Covered |
-- |
-- |
-- |
-- |
-- |
Total |
-- |
190 |
-- |
-- |
-- |
|
|
|
|
|
|
Total Nonperforming Loans: |
|
|
|
|
|
Non-covered |
29,817 |
39,725 |
59,399 |
62,069 |
60,882 |
Covered |
14,015 |
16,930 |
18,543 |
18,064 |
10,350 |
Total |
43,832 |
56,655 |
77,942 |
80,133 |
71,232 |
|
|
|
|
|
|
OREO and Repossessed Vehicles: |
|
|
|
|
|
Non-covered |
6,271 |
8,620 |
7,001 |
7,668 |
12,429 |
Covered |
1,950 |
664 |
1,498 |
844 |
2,554 |
Total |
8,221 |
9,284 |
8,499 |
8,512 |
14,983 |
|
|
|
|
|
|
Total Nonperforming
Assets: |
|
|
|
|
|
Non-covered |
36,088 |
48,345 |
66,400 |
69,737 |
73,311 |
Covered |
15,965 |
17,594 |
20,041 |
18,908 |
12,904 |
Total |
$ 52,053 |
$ 65,939 |
$ 86,441 |
$ 88,645 |
$ 86,215 |
|
|
|
|
|
|
Total Nonperforming Loans/Gross Loans |
2.21% |
2.84% |
3.73% |
3.50% |
3.06% |
Total Legacy Nonperforming Loans/Legacy Gross
Loans |
1.64% |
2.18% |
3.13% |
2.97% |
2.87% |
|
|
|
|
|
|
Total Nonperforming Assets/Total Assets |
1.93% |
2.46% |
3.22% |
3.18% |
2.90% |
Total Legacy Nonperforming Assets/Total
Assets |
1.34% |
1.80% |
2.48% |
2.50% |
2.47% |
|
|
|
|
|
|
|
|
|
|
|
|
ALLOWANCE FOR
OFF-BALANCE SHEET ITEMS |
Quarter Ended |
(Dollars In Thousands) |
Dec 31, 2011 |
Sep 30, 2011 |
Jun 30, 2011 |
Mar 30, 2011 |
Dec 31, 2010 |
|
|
|
|
|
|
Balance at beginning of period |
$ 3,423 |
$ 4,103 |
$ 3,926 |
$ 3,926 |
$ 2,926 |
(Recapture) provision for losses on
off-balance sheet items |
-- |
(680) |
177 |
-- |
1,000 |
Balance at end of period |
$ 3,423 |
$ 3,423 |
$ 4,103 |
$ 3,926 |
$ 3,926 |
|
|
|
|
|
Twelve Months Ended |
|
|
Dec 31, 2011 |
Dec 31, 2010 |
|
|
|
|
|
Balance at beginning of period |
3,926 |
2,515 |
|
(Recapture) provision for losses on
off-balance sheet items |
(503) |
1,411 |
|
Balance at end of period |
$ 3,423 |
$ 3,926 |
|
|
|
|
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 |
|
December 31, 2011 |
September 30, 2011 |
December 31, 2010 |
|
|
|
|
Total stockholders' equity |
$ 309,582 |
$ 301,841 |
$ 229,162 |
Preferred stock, net of
discount |
(61,000) |
(60,859) |
(60,450) |
Goodwill and other
intangible assets, net |
(7,995) |
(8,077) |
(8,320) |
Tangible common equity |
$ 240,587 |
$ 232,905 |
$ 160,392 |
|
|
|
|
Total assets |
$ 2,696,854 |
$ 2,680,718 |
$ 2,970,525 |
Goodwill and other
intangible assets, net |
(7,995) |
(8,077) |
(8,320) |
Tangible assets |
$ 2,688,859 |
$ 2,672,641 |
$ 2,962,205 |
|
|
|
|
Common shares outstanding |
71,291,614 |
71,291,614 |
29,477,778 |
|
|
|
|
|
|
|
|
WILSHIRE BANCORP, INC.
AND SUBSIDIARIES |
AVERAGE BALANCES,
AVERAGE YIELDS EARNED AND AVERAGE RATES PAID |
(dollars in thousands)
(unaudited) |
|
|
For the Quarter
Ended |
|
December
31, 2011 |
September 30,
2011 |
December
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 |
$1,691,650 |
$24,012 |
5.68% |
$1,739,729 |
$24,388 |
5.61% |
$2,072,543 |
$26,919 |
5.20% |
Commercial
Loans |
270,425 |
3,446 |
5.10% |
287,359 |
3,772 |
5.25% |
346,987 |
4,435 |
5.11% |
Consumer Loans |
15,406 |
115 |
2.99% |
15,827 |
135 |
3.41% |
16,084 |
138 |
3.43% |
Total Gross
Loans |
1,977,481 |
27,573 |
5.58% |
2,042,915 |
28,295 |
5.54% |
2,435,614 |
31,492 |
5.17% |
Loan Fees toward
Yield |
|
939 |
|
|
671 |
|
|
701 |
|
Allowance for Loan
Losses & Unearned Income |
(109,096) |
|
|
(116,605) |
|
|
(102,693) |
|
|
Net
Loans |
1,868,385 |
28,512 |
6.10% |
1,926,310 |
28,966 |
6.01% |
2,332,921 |
32,193 |
5.52% |
|
|
|
|
|
|
|
|
|
|
INVESTMENT SECURITIES
AND |
|
|
|
|
|
|
|
|
|
OTHER INTEREST-EARNING
ASSETS: |
|
|
|
|
|
|
|
|
|
Investment
Securities* |
339,302 |
1,387 |
1.90% |
306,272 |
1,651 |
2.45% |
353,983 |
1,551 |
2.02% |
Federal Funds
Sold |
231,687 |
486 |
0.84% |
204,458 |
340 |
0.67% |
159,633 |
476 |
1.19% |
Total
Investment Securities and |
|
|
|
|
|
|
|
|
|
Other
Earning Assets |
570,989 |
1,873 |
1.47% |
510,730 |
1,991 |
1.74% |
513,616 |
2,027 |
1.76% |
|
|
|
|
|
|
|
|
|
|
TOTAL INTEREST-EARNING
ASSETS |
$2,439,374 |
$30,385 |
5.02% |
$2,437,040 |
$30,957 |
5.12% |
$2,846,537 |
$34,220 |
4.84% |
|
|
|
|
|
|
|
|
|
|
INTEREST
BEARING LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST-BEARING
DEPOSITS: |
|
|
|
|
|
|
|
|
|
Money Market |
$546,972 |
$1,162 |
0.85% |
$570,176 |
$1,317 |
0.92% |
$738,538 |
$1,684 |
0.91% |
NOW |
24,365 |
20 |
0.33% |
23,657 |
21 |
0.36% |
22,217 |
19 |
0.34% |
Savings |
94,910 |
649 |
2.74% |
91,619 |
631 |
2.75% |
81,267 |
587 |
2.89% |
Time Deposits of
$100,000 or More |
655,022 |
1,529 |
0.93% |
650,453 |
1,540 |
0.95% |
717,362 |
2,106 |
1.17% |
Other Time
Deposits |
355,587 |
947 |
1.07% |
357,289 |
952 |
1.07% |
569,725 |
2,362 |
1.66% |
Total
Interest Bearing Deposits |
1,676,856 |
4,307 |
1.03% |
1,693,194 |
4,461 |
1.05% |
2,129,109 |
6,758 |
1.27% |
|
|
|
|
|
|
|
|
|
|
BORROWINGS: |
|
|
|
|
|
|
|
|
|
FHLB Advances and
Other Borrowings |
105,163 |
340 |
1.29% |
110,000 |
483 |
1.76% |
144,145 |
697 |
1.93% |
Junior Subordinated
Debentures |
87,321 |
517 |
2.37% |
87,321 |
491 |
2.25% |
87,321 |
497 |
2.28% |
Total
Borrowings |
192,484 |
857 |
1.78% |
197,321 |
974 |
1.97% |
231,466 |
1,194 |
2.06% |
|
|
|
|
|
|
|
|
|
|
TOTAL INTEREST BEARING
LIABILITIES |
$1,869,340 |
$5,164 |
1.10% |
$1,890,515 |
$5,435 |
1.15% |
$2,360,575 |
$7,952 |
1.35% |
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME |
|
$25,221 |
|
|
$25,522 |
|
|
$26,268 |
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
SPREAD |
|
|
3.93% |
|
|
3.97% |
|
|
3.49% |
|
|
|
|
|
|
|
|
|
|
NET INTEREST
MARGIN |
|
|
4.17% |
|
|
4.23% |
|
|
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 Twelve
Months Ended |
|
December 31,
2011 |
December 31,
2010 |
|
|
|
|
Average |
Interest |
Average |
Average |
Interest |
Average |
|
Balance |
Income/ |
Yield/ |
Balance |
Income/ |
Yield/ |
|
|
Expense |
Rate |
|
Expense |
Rate |
INTEREST EARNING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Loans |
$1,826,421 |
$102,175 |
5.59% |
$2,062,223 |
$116,585 |
5.65% |
Commercial Loans |
295,932 |
15,683 |
5.30% |
367,573 |
19,959 |
5.43% |
Consumer Loans |
15,289 |
442 |
2.89% |
17,162 |
654 |
3.81% |
Total Gross Loans |
2,137,642 |
118,300 |
5.54% |
2,446,958 |
137,198 |
5.61% |
Loan Fees toward Yield |
|
3,407 |
|
|
2,830 |
|
Allowance for Loan Losses &
Unearned Income |
(117,606) |
|
|
(88,809) |
|
|
Net
Loans |
2,020,036 |
121,707 |
6.03% |
2,358,149 |
140,028 |
5.94% |
|
|
|
|
|
|
|
INVESTMENT SECURITIES
AND |
|
|
|
|
|
|
OTHER INTEREST-EARNING
ASSETS: |
|
|
|
|
|
|
Investment Securities* |
328,280 |
7,177 |
2.47% |
527,999 |
14,726 |
3.00% |
Federal Funds Sold |
149,709 |
1,080 |
0.72% |
169,461 |
1,666 |
0.98% |
Total Investment
Securities and |
|
|
|
|
|
|
Other Earning
Assets |
477,989 |
8,257 |
1.92% |
697,460 |
16,392 |
2.51% |
|
|
|
|
|
|
|
TOTAL INTEREST-EARNING
ASSETS |
$2,498,025 |
$129,964 |
5.24% |
$3,055,609 |
$156,420 |
5.16% |
|
|
|
|
|
|
|
INTEREST BEARING
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST-BEARING
DEPOSITS: |
|
|
|
|
|
|
Money Market |
$590,199 |
$5,290 |
0.90% |
$880,618 |
$11,755 |
1.33% |
NOW |
23,869 |
84 |
0.35% |
22,104 |
97 |
0.44% |
Savings |
89,582 |
2,487 |
2.78% |
77,484 |
2,380 |
3.07% |
Time Deposits of $100,000 or
More |
658,862 |
6,346 |
0.96% |
745,139 |
10,370 |
1.39% |
Other Time Deposits |
377,491 |
4,334 |
1.15% |
654,099 |
12,494 |
1.91% |
Total Interest
Bearing Deposits |
1,740,003 |
18,541 |
1.07% |
2,379,444 |
37,096 |
1.56% |
|
|
|
|
|
|
|
BORROWINGS: |
|
|
|
|
|
|
FHLB Advances and Other
Borrowings |
163,227 |
2,057 |
1.26% |
142,759 |
3,125 |
2.19% |
Junior Subordinated
Debentures |
87,321 |
1,991 |
2.28% |
87,321 |
2,483 |
2.84% |
Total
Borrowings |
250,548 |
4,048 |
1.62% |
230,080 |
5,608 |
2.44% |
|
|
|
|
|
|
|
TOTAL INTEREST BEARING
LIABILITIES |
$1,990,551 |
$22,589 |
1.13% |
$2,609,524 |
$42,704 |
1.64% |
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
$107,375 |
|
|
$113,716 |
|
|
|
|
|
|
|
|
NET INTEREST SPREAD |
|
|
4.11% |
|
|
3.52% |
|
|
|
|
|
|
|
NET INTEREST MARGIN |
|
|
4.34% |
|
|
3.76% |
|
* Tax equivalent ratios for
investment securities |
CONTACT: WILSHIRE BANCORP, INC.
Alex Ko, EVP & CFO
(213) 427-6560
www.wilshirebank.com
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