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Wilshire Bancorp Reports Net Income Of $38.5 Million Or $0.54 Earnings Per Share For Third Quarter 2012

Stocks in this article: WIBC

LOS ANGELES, Oct. 22, 2012 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq:WIBC) ('the Company"), the holding company for Wilshire State Bank ("the Bank"), today reported net income available to common shareholders of $38.5 million, or $0.54 per diluted common share, for the quarter ended September 30, 2012. This compares to net income available to common shareholders of $10.2 million, or $0.14 per common share, for the same period of the prior year, and net income available to common shareholders of $22.1 million, or $0.31 per common share, for the second quarter of 2012. The increase in net income for the third quarter of 2012 is primarily attributable to a $12.0 million negative provision for losses on loans and a $12.6 million tax benefit that resulted from the reversal of the deferred tax asset valuation allowance.

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "Our third quarter results represent the highest level of net income and earnings per share in our history. We believe that the Company continues to exhibit positive trends, including solid loan growth, an improving deposit mix, an expanding net interest margin, and improved efficiencies. We also continue to see stable credit quality and a low level of credit losses, which drove a further reduction in our allowance for loan losses from the elevated levels we built last year.

"As we previously announced, both the Company's and the Bank's Memoranda of Understanding with their respective regulators have been terminated, and as a result, we anticipate more flexibility in terms of strategic planning," said Mr. Yoo.

Q3 2012 Summary:

  • Net income available to common shareholders of $38.5 million or $0.54 per diluted share
  • Net interest margin increased to 4.35% for Q3 2012 from 4.13% for Q2 2012 as cash and cash equivalents were shifted to higher yielding loans
  • Deferred tax asset valuation allowance fully reversed in Q3 2012
  • Strengthened capital ratios with tier 1 leverage ratio at 15.0%, total risk based ratio at 20.6%, and tangible common equity ratio at 12.3% in Q3 2012.
  • Gross loans (including held-for-sale) totaled $2.09 billion at Q3 2012, an increase of 3.2% from $2.03 billion at Q2 2012
  • Improved deposit mix with non-interest-bearing demand deposits increasing to 24.8% of total deposits at Q3 2012 from 23.6% at Q2 2012
  • Non-accrual loans declined to $38.9 million, classified loan declined to $172.8 million, and gross charge-offs declined to $2.8 million in Q3 2012 compared to Q2 2012
  • Improved credit quality and reduced gross charge-offs resulted in $12.0 million negative provision for losses on loans
  • FDIC indemnification impairment of $2 million as a result of improved credit quality of covered loans
  • Redemption of $10 million in junior subordinated debentures in Q3 2012 that had a rate of approximately 3.5% at redemption

STATEMENT OF OPERATIONS

Net Interest Income and Margin

Net interest income before credit for losses on loans totaled $25.6 million in the third quarter of 2012, slightly up from $25.5 million for the third quarter of 2011, and an increase of 5.6% from $24.2 million in the second quarter of 2012. The increase from the prior quarter was primarily due to an increase in average loans outstanding and a decrease in interest expense.

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