LOS ANGELES, Jan. 25, 2016 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (NASDAQ:WIBC) (the "Company"), the holding company for Wilshire Bank (the "Bank"), today reported net income of $13.9 million, or $0.18 per diluted common share, for the quarter ended December 31, 2015. This compares to net income of $16.1 million, or $0.20 per diluted common share, for the same period of the prior year, and net income of $13.3 million, or $0.17 per diluted common share, for the third quarter of 2015. Excluding $994,000 in non-deductible merger-related costs related to the BBCN Bancorp Inc. ("BBCN") merger of equals, net income was $14.9 million, or $0.19 per diluted common share, for the fourth quarter of 2015.*

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "We finished 2015 with excellent momentum, generating more than $500 million in loan originations, a historical high. During the fourth quarter, we received strong contributions from most of our major lending areas including commercial real estate, commercial and industrial, and Small Business Administration ("SBA"). With our strong loan production in the second half of the year, we were able to increase our total loan portfolio by 16% in 2015, while experiencing positive trends in asset quality.

"We were also able to effectively redeploy a significant portion of our excess liquidity during the fourth quarter by funding our strong loan production, investing in our securities portfolio, and allowing certain higher cost deposits to run-off. As a result, our net interest margin increased seven basis points during the fourth quarter to 3.56%.

"We are very excited about our pending merger of equals with BBCN Bancorp and we look forward to the opportunity to better serve our markets as part of the premier Korean-American bank in the United States," said Mr. Yoo.

Q4 2015 Summary
  • Net income totaled $13.9 mi llion, or $0.18 per diluted common share, for the fourth quarter of 2015
  • Return on average assets of 1.18% and return on average equity of 10.43% for the fourth quarter of 2015
  • Net interest margin of 3.56% for the fourth quarter of 2015, an increase from 3.49% for the third quarter of 2015
  • Improvement in credit quality from the third of 2015 to fourth quarter of 2015 with a decline in non-accrual, delinquencies, TDR, and classified loans
  • Net recoveries increased from $795,000 for the third quarter of 2015, to $2.3 million for the fourth quarter of 2015
  • Loan originations of $502.9 million during the fourth quarter of 2015 compared to $327.4 million for the fourth quarter of 2014
  • Loans receivable (net of deferred fees and costs) totaled $3.82 billion at December 31, 2015, an increase of 15% from $3.31 billion at December 31, 2014
  • Total deposits were $3.84 billion at December 31, 2015, an increase of 13% from $3.40 billion at December 31, 2014   
  • Demand deposits totaled $1.09 billion at December 31, 2015, an increase of 19% from $915.4 million at December 31, 2014
  • Merger-related costs of $994,000 related to the pending merger of equals with BBCN

* "Net income and earnings per share before merger-related costs" are Non-GAAP measures of financial performance. Please refer to the "Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures" table at the end of this press release for a reconciliation of Net income and earnings per share before merger-related costs to Net income and earnings per share.

STATEMENT OF OPERATIONS

Net interest income before provision for losses on loans and loan commitments totaled $39.4 million for the fourth quarter of 2015, an increase of 5.2% from $37.5 million for both the fourth quarter of 2014 and the third quarter of 2015. Relative to the fourth quarter of 2014 and third quarter of 2015, net interest income was positively impacted by an increase in average total loans and investments securities.

Net interest margin was 3.56% for the fourth quarter of 2015, compared to 3.49% for the third quarter of 2015, and 4.00% for the fourth quarter of 2014. The increase in net interest margin from the third to fourth quarter of 2015 was attributable to an increase in average loans and the deployment of lower yielding excess cash.

Loan yields were 4.80% for the fourth quarter of 2015, compared to 4.76% for the third quarter of 2015, and 5.09% for the fourth quarter of 2014.

The total cost of deposits was 0.61% for the fourth quarter of 2015, compared to 0.62% for the third quarter of 2015, and 0.58% for the fourth quarter of 2014. Compared to the third quarter of 2015, the decrease in the cost of deposits for the fourth quarter of 2015 was primarily due to the run-off of higher cost other time deposits.

Non-Interest Income

Total non-interest income was $9.5 million for the fourth quarter of 2015, compared to $9.5 million for the third quarter of 2015, and $9.9 million for the fourth quarter of 2014.

The Company recognized $2.9 million in net gain on sales of loans during the fourth quarter of 2015, compared to $3.2 million for the third quarter of 2015, and $3.5 million for the fourth quarter of 2014. Net gain on sale of loans in the fourth quarter of 2015 consisted of $2.0 million in gains on sales of SBA loans, $898,000 in net gains on sales of residential mortgage loans, and $62,000 in gains from the sale of non-performing loans. The decline in net gain on sale of loans for the fourth quarter of 2015, compared to the previous quarter, was primarily due to a decline in sale of residential mortgage loans, while the decline from the fourth quarter of 2014 was due to a reduction in SBA loan sales in addition to a decline in average premium rates.

Other non-interest income totaled $3.7 million for the fourth quarter of 2015, compared to $3.3 million for both the third quarter of 2015 and fourth quarter of 2014. The increase in other non-interest income from the third to fourth quarter of 2015 was primarily due to an increase in loan servicing and other miscellaneous loan related income.

Non-Interest Expense

Total non-interest expense was $26.6 million for the fourth quarter of 2015, compared with $25.8 million for the third quarter of 2015, and $23.5 million for the fourth quarter of 2014. The increase in non-interest expense from the prior quarter was primarily due to $994,000 in merger-related costs related to the planned merger of equals with BBCN, consisting mostly of financial advisor fees and legal expenses. Merger-related costs also contributed to an approximate 1.60% increase in tax rate for the fourth quarter of 2015, as these expenses were not tax deductible.

Total salaries and employee benefits expense was $13.7 million for the fourth quarter of 2015, compared to $13.6 million for the third quarter of 2015, and $12.4 million for the fourth quarter of 2014. The increase in salaries and employee benefits for the fourth quarter of 2015 compared to the fourth quarter of 2014 was due to an overall increase in total employees, primarily to support the expansion of the residential mortgage lending business.

The Company's operating efficiency ratio was 54.3% for the fourth quarter of 2015, compared with 54.8% for the third quarter of 2015, and 49.5% for the fourth quarter of 2014.

BALANCE SHEET

During the fourth quarter of 2015, the Company was able to reduce its cash and cash equivalents balance from $488.3 million at September 30, 2015, to $118.2 million at December 31, 2015. Excess cash was deployed in the fourth quarter of 2015 through the purchase of investment securities and funding loan growth. Higher cost time deposits and brokered money market accounts were also run-off during the fourth quarter of 2015, which helped to reduce cash equivalents to levels at year end.

Total loans receivable (net of deferred fees and costs) were $3.82 billion at December 31, 2015, compared to $3.63 billion at September 30, 2015. The increase in loans during the fourth quarter of 2015 was primarily attributable to growth in the real estate secured portfolio.

The following table shows total loans receivable, loans held-for-sale, and total loans by loan type:
   
  Quarter Ended
(Dollars In Thousands) (Unaudited)   December 31, 2015   September 30, 2015   June 30, 2015   March 31, 2015   December 31, 2014
                   
Construction $   19,541     $   18,146     $   16,050     $   26,117     $   21,248  
Real Estate Secured   2,992,824       2,810,420       2,723,458       2,701,800       2,655,251  
Commercial & Industrial   792,243       789,422       765,655       769,438       610,762  
Consumer   15,096       13,284       14,622       15,465       21,036  
Total Loans Receivable *   3,819,704       3,631,272       3,519,785       3,512,820       3,308,297  
Loans Held-For-Sale   25,223       13,316       25,269       10,204       11,783  
Total Loans * $ 3,844,927     $   3,644,588     $   3,545,054     $   3,523,024     $   3,320,080  
                   

  * Total loans receivable and total loans are net of deferred fees and costs as shown in the consolidated balance sheet presentation

The following table shows quarterly loan originations:                                                                                                                                                                                          

     
  Quarter Ended  
(Dollars In Thousands) (Unaudited)   December 31, 2015   September 30, 2015   June 30, 2015   March 31, 2015   December 31, 2014  
                                         
Real Estate Secured $ 273,613       54 %   $ 176,605       43 %   $ 121,066       41 %   $ 138,145       35 %   $ 184,477       56 %  
Commercial & Industrial   94,128       19 %     107,952       26 %     46,438       16 %     59,837       15 %     73,194       22 %  
Consumer   55       0 %     360       0 %     124       0 %     1,640       0 %     3,385       1 %  
SBA   37,897       8 %     21,871       5 %     25,648       9 %     31,718       8 %     34,747       11 %  
Residential Mortgage   95,159       19 %     102,383       25 %     89,652       31 %     11,357       3 %     8,632       4 %  
Warehouse Lines of Credit*   2,000       0 %     7,000       1 %     10,000       3 %     155,000       39 %     23,000       6 %  
Total Loan Originations $ 502,852       100 %   $ 416,171       100 %   $ 292,928       100 %   $ 397,697       100 %   $ 327,435       100 %  
                                         

* Warehouse lines of credit are reported as commercial and industrial loans on the consolidated balance sheet.

Originations for the fourth quarter of 2015 totaled $502.9 million, compared to $416.2 million for the third quarter of 2015, and $327.4 million for the fourth quarter of 2014. The increase in loan origination for the three months ended December 31, 2015, compared to the previous quarter, was due to an increase in real estate secured and SBA loan originations. 

Total SBA loans held-for-sale at the end of the fourth quarter of 2015 were $5.5 million, compared to $2.2 million at the end of the previous quarter. The decision to retain or sell SBA loans is made on a quarter-to-quarter basis, depending on prevailing pricing in the secondary market and the Company's liquidity needs. Residential mortgage loans held-for-sale at the end of the fourth quarter of 2015 were $19.7 million, compared to $9.6 million at the end of the third quarter of 2015.

Total deposits were $3.84 billion at December 31, 2015, compared with $3.94 billion at September 30, 2015. The decrease in total deposits was attributable to the strategic run-off of higher cost time deposits and a reduction in brokered money market deposits.

CREDIT QUALITY

During the fourth quarter of 2015, the Company experienced general improvement in asset quality, continued low levels of charge-offs, and significant loan recoveries. As a result, the Company determined that no provision for losses on loans and loan commitments was required for the fourth quarter of 2015 in spite of the loan growth experienced during the quarter.

The allowance for loan losses totaled $52.4 million, or 1.37% of gross loans (excluding loans held-for-sale), at December 31, 2015, compared to $50.1 million, or 1.38% of gross loans (excluding loans held-for-sale), at September 30, 2015. The coverage ratio of the allowance for loan losses to non-performing assets was 169.74% at December 31, 2015, compared with 130.23% at September 30, 2015.

Non- Performing Loans

At December 31, 2015, total non-performing loans were $21.7 million, or 0.56% of total gross loans, compared to $27.2 million, or 0.74% of total gross loans, at September 30, 2015.

The following table shows total non-performing loans by loan type:
   
NON-PERFORMING LOANS Quarter Ended
(Dollars In Thousands) (Unaudited)   Dec 31, 2015   Sep 30, 2015   Jun 30, 2015   Mar 31, 2015   Dec 31, 2014
(Net of SBA Guaranty Portions)                  
Real Estate Secured $   15,422     $   20,123     $   23,235     $   25,329     $   29,547  
Commercial & Industrial   6,272       7,058       7,617       7,193       7,718  
Total Non-Performing Loans $   21,694     $   27,181     $   30,852     $   32,522     $   37,265  
                   

Net Charge-offs/Recoveries

During the fourth quarter of 2015, the Company had total gross charge-offs of $1.4 million, and recoveries of $3.7 million, which resulted in net recoveries of $2.3 million, compared to net recoveries of $795,000 for the third quarter of 2015.

Gross charge-offs and recoveries by loan type are reflected in the tables below:

   
GROSS LOAN CHARGE-OFFS Quarter Ended 
(Dollars In Thousands) (Unaudited)   Dec 31, 2015   Sep 30, 2015   Jun 30, 2015   Mar 31, 2015   Dec 31, 2014
                   
Real Estate Secured $   13     $   605     $   249     $   325     $   5,461  
Commercial & Industrial   1,392       1,270       310       999       852  
Total Loan Charge-Offs $   1,405     $   1,875     $   559     $   1,324     $   6,313  
                   

   
LOAN RE COVERIES Quarter Ended 
(Dollars In Thousands) (Unaudited)   Dec 31, 2015   Sep 30, 2015   Jun 30, 2015   Mar 31, 2015   Dec 31, 2014
                   
Real Estate Secured $   3,242     $   1,867     $   970     $   193     $   199  
Commercial & Industrial   452       803       240       667       1,620  
Consumer   -       -       -       10       2  
Total Loan Recoveries $   3,694     $   2,670     $   1,210     $   870     $   1,821  
                   

Other measures of credit quality are shown in the following tables:
   
DELINQUENT  LOANS -  By Days Past Due                       Quarter Ended
(Dollars In Thousands) (Unaudited) Dec 31, 2015   Sep 30, 2015   Jun 30, 2015   Mar 31, 2015   Dec 31, 2014
(Net of SBA Guaranty Portions)                  
30 - 59 Days Past Due $   4,315     $   4,911     $   3,615     $   7,375     $   5,165  
60 - 89  Days Past Due   1,643       1,143       7,576       421       1,820  
90 Days, and still accruing   -       -       -       -       -  
Total Delinquent Loans $   5,958     $   6,054     $   11,191     $   7,796     $   6,985  
                   

            
   
TROUBLED DEBT RESTRUCTURED LOANS ("TDR")   Quarter Ended
(Dollars In Thousands) (Unaudited) Dec 31, 2015   Sep 30, 2015   Jun 30, 2015   Mar 31, 2015   Dec 31, 2014
(Net of SBA Guaranty Portions)                  
Real Estate Secured $   22,311     $   24,188     $   29,424     $   28,612     $   25,096  
Commercial & Industrial   15,681       16,578       13,469       11,682       12,014  
Total TDR Loans $   37,992     $   40,766     $   42,893     $   40,294     $   37,110  
                   

   
LOAN CLASSIFICATIONS                                                       Quarter Ended
(Dollars In Thousands) (Unaudited) Dec 31, 2015   Sep 30, 2015   Jun 30, 2015   Mar 31, 2015   Dec 31, 2014
(Net of SBA Guaranty Portions)                  
Special Mention $   120,019     $   118,290     $   86,118     $   81,049     $   76,906  
Substandard   80,310       82,000       96,666       89,402       82,305  
Doubtful   41       2,182       5,301       9,822       11,952  
Total Criticized and Classified Loans $   200,370     $   202,472     $   188,085     $   180,273     $   171,163  
                   
Total Classified Loans $   80,351     $   84,182     $   101,967     $   99,224     $   94,257  
                   

CAPITAL RATIOS

As of December 31, 2015, 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) December 31, 2015   Well CapitalizedRegulatory Requirements   Total Excess Above WellCapitalized Requirements
Tier 1 Leverage Capital Ratio   11.30 %     5.00 %   292,980
Tier 1 Common Equity Risk-Based Capital Ratio     11.23 %     6.50 %   193,241
Tier 1 Risk-Based Capital Ratio   12.86 %     8.00 %   198,690
Total Risk-Based Capital Ratio   14.11 %     10.00 %   168,112
Tangible Common Equity To Tangible Assets *   9.96 %     N/A     N/A
Tangible Common Equity Per Common Share * $   5.88       N/A     N/A
                   

"Tangible Common Equity" and "Tangible Assets" are Non-GAAP measures of financial performance. Please refer to the "Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures" table at the end of this press release for a reconciliation of Tangible Common Equity to Shareholders' Equity and Tangible Assets to Total Assets.

CONFERENCE CALL

Management will host its quarterly conference call on January 26, 2016, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing toll-free 888-298-2143 (domestic) or 503-406-4050 (international) and providing passcode number 20355338.

ABOUT WILSHIRE BANCORP

Headquartered in Los Angeles, Wilshire Bancorp is the parent company of Wilshire Bank, which operates 35 branch offices in California, Texas, Alabama, Georgia, New Jersey, and New York. Wilshire Bancorp also operates six loan production offices of which four are utilized primarily for the origination of loans under the Small Business Administration lending program located in California, Colorado, Georgia, and Washington, and two that are utilized primarily for the origination of residential mortgage loans located in California. Wilshire Bank is a community bank with a focus on commercial real estate lending and general commercial banking, with its primary markets encompassing the multi-ethnic populations of the Los Angeles, New York, New Jersey, and Texas. For more information, please go to  www.wilshirebank.com.

ABOUT BBCN BANCORP, INC.

BBCN Bancorp, Inc. is the holding company of BBCN Bank, the largest Korean-American bank in the nation. Headquartered in Los Angeles and serving a diverse mix of customers mirroring its communities, BBCN operates 50 branches in California, New York, New Jersey, Illinois, Washington, and Virginia; eight loan production offices in Seattle, Denver, Dallas, Atlanta, Northern California, Annandale, Virginia, Portland, Oregon, and Fremont, California; and a representative office in Seoul, Korea.  BBCN specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and business lending, SBA lending and international trade financing. BBCN Bank is a California-chartered bank and its deposits are insured by the FDIC to the extent provided by law. BBCN is an Equal Opportunity Lender.

ADDITIONAL INFORMATION ABOUT MERGER AND WHERE TO FIND IT

In connection with the proposed merger, BBCN Bancorp, Inc. will file with the Securities and Exchange Commission ("SEC") a Registration Statement on Form S-4 that will include a Joint Proxy Statement/Prospectus of Wilshire Bancorp, Inc. and BBCN Bancorp, as well as other relevant documents concerning the proposed transaction. Shareholders are urged to read the Registration Statement and the Joint Proxy Statement/Prospectus regarding the merger when it becomes available and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they will contain important information. You will be able to obtain a free copy of the Joint Proxy Statement/Prospectus, as well as other filings containing information about Wilshire Bancorp and BBCN Bancorp at the SEC's Internet site ( www.sec.gov). You will also be able to obtain these documents, free of charge, from BBCN at www.BBCNbank.com in the "Investor Relations" section under the "About" tab, or from Wilshire Bancorp at www.wilshirebank.com in the "Investor Relations" section under the "About Wilshire Bank" tab.

PARTICIPANTS IN SOLICITATION

Wilshire Bancorp and BBCN Bancorp and their respective directors, executive officers, management and employees may be deemed to be participants in the solicitation of proxies in respect of the merger. Information concerning Wilshire Bancorp's participants is set forth in the proxy statement, dated April 9, 2015, for Wilshire Bancorp's 2015 annual meeting of stockholders as filed with the SEC on Schedule 14A. Information concerning BBCN Bancorp's participants is set forth in the proxy statement, dated May 1, 2015, and supplemental proxy materials, dated May 20, 2015, for BBCN Bancorp's 2015 annual meeting of stockholders, as filed with the SEC on Schedules 14A. Additional information regarding the interests of participants of Wilshire Bancorp and BBCN Bancorp in the solicitation of proxies in respect of the merger will be included in the registration statement and joint proxy statement/prospectus to be filed with the SEC.

FORWARD-LOOKING STATEMENTS

This press release contains statements regarding the proposed transaction between Wilshire Bancorp and BBCN Bancorp. These statements are based on current expectations, estimates, forecasts and projections and management assumptions about the future performance of each of BBCN Bancorp, Wilshire Bancorp and the combined company, as well as the businesses and markets in which they do and are expected to operate. These statements constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as "expects," "believes," "estimates," "anticipates," "targets," "goals," "projects," "intends," "plans, "seeks," and variations of such words and similar expressions are intended to identify such forward-looking statements which are not statements of historical fact. These forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to assess. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The closing of the proposed transaction is subject to regulatory approvals, the approval of the shareholders of both Wilshire Bancorp and BBCN Bancorp, and other customary closing conditions.  There is no assurance that such conditions will be met or that the proposed transaction will be consummated within the expected time frame, or at all.  If the transaction is consummated, factors that may cause actual outcomes to differ from what is expressed or forecasted in these forward-looking statements include, among things: difficulties and delays in integrating Wilshire Bancorp and BBCN Bancorp and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; deposit attrition, operating costs, customer loss and business disruption following the merger, including difficulties in maintaining relationships with employees, may be greater than expected; required governmental approvals of the merger may not be obtained on its proposed terms and schedule, or without regulatory constraints that may limit growth; competitive pressures among depository and other financial institutions may increase significantly and have an effect on revenues; the strength of the United States economy in general, and of the local economies in which the combined company will operate, may be different than expected, which could result in, among other things, a deterioration in credit quality or a reduced demand for credit and have a negative effect on the combined company's loan portfolio and allowance for loan losses; changes in the U.S. legal and regulatory framework; and adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) which would negatively affect the combined company's business and operating results.

For a more complete list and description of such risks and uncertainties, refer to Wilshire Bancorp's Form 10-K for the year ended December 31, 2014, and BBCN Bancorp's Form 10-K for the year ended December 31, 2014, as amended, as well as other filings made by Wilshire Bancorp and BBCN Bancorp with the SEC. Except as required under the U.S. federal securities laws and the rules and regulations of the SEC, Wilshire Bancorp and BBCN Bancorp disclaim any intention or obligation to update any forward-looking statements after the distribution of this press release, whether as a result of new information, future events, developments, changes in assumptions or otherwise.                                       

                     
CONSOLIDATED BALANCE SHEET                    
(Dollars In Thousands) (Unaudited)   December 31,   September 30,   Three Months   December 31,   Twelve Months
      2015       2015     % Change     2014     % Change
ASSETS:                    
Cash and due from banks   $   118,089     $   487,655       -76 %   $   233,699       -49 %
Federal funds sold and other cash equivalents     104       601       -83 %       254       -59 %
Total Cash and Cash Equivalents     118,193       488,256       -76 %       233,953       -49 %
                     
Deposits held in other financial institutions     -       7,500       -100 %       8,000       -100 %
                     
Investment securities available for sale     535,524       386,679       38 %       388,367       38 %
Investment securities held to maturity     21       22       -5 %       26       -19 %
Total Investment Securities     535,545       386,701       38 %       388,393       38 %
                     
Total Loans Held-For-Sale     25,223       13,316       89 %     11,783       114 %
                     
Real estate construction     19,541       18,146       8 %     21,248       -8 %
Residential real estate     269,117       231,902       16 %     183,665       47 %
Commercial real estate     2,723,707       2,578,518       6 %     2,471,586       10 %
Commercial and industrial     792,243       789,422       0 %     610,762       30 %
Consumer     15,096       13,284       14 %     21,036       -28 %
Total loans receivable, net of deferred fees and costs     3,819,704       3,631,272       5 %     3,308,297       15 %
Allowance for loan losses     (52,405 )     (50,116 )     5 %     (48,624 )     8 %
Loans Receivable, Net of Allowance for Loan Losses     3,767,299       3,581,156       5 %     3,259,673       16 %
                     
Accrued interest receivable     9,226       8,604       7 %     8,792       5 %
Due from customers on acceptances     7,250       8,940       -19 %     5,611       29 %
Other real estate owned     9,179       11,302       -19 %     7,922       16 %
Premises and equipment     16,096       14,328       12 %     13,881       16 %
Federal home loan bank (FHLB) stock, at cost     16,539       16,539       0 %     16,539       0 %
Cash surrender value of life insurance     25,028       24,879       1 %     23,330       7 %
Investment in affordable housing partnerships     48,867       45,435       8 %     44,077       11 %
Deferred income taxes     21,489       20,086       7 %     22,271       -4 %
Servicing assets     19,894       19,967       0 %     18,031       10 %
Goodwill     67,473       67,473       0 %     67,473       0 %
Other assets     26,167       25,919       1 %     25,740       2 %
TOTAL ASSETS   $ 4,713,468     $ 4,740,401       -1 %   $   4,155,469       13 %
                     
LIABILITIES AND SHAREHOLDERS' EQUITY:                    
Non-interest bearing demand deposits   $ 1,088,436     $ 1,074,025       1 %   $   915,413       19 %
Savings and interest checking     172,038       161,267       7 %     160,717       7 %
Money market deposits     977,697       996,899       -2 %     765,892       28 %
Time deposits in denomination of $100,000 or more     1,349,440       1,440,340       -6 %     1,291,844       4 %
Other time deposits     252,265       269,909       -7 %     267,393       -6 %
Total Deposits     3,839,876       3,942,440       -3 %     3,401,259       13 %
                     
FHLB borrowings     220,000       150,000       47 %     150,000       47 %
Acceptance outstanding     7,250       8,940       -19 %     5,611       29 %
Junior subordinated debentures     72,016       71,955       0 %     71,779       0 %
Accrued interest payable     2,105       2,326       -10 %     2,228       -6 %
Other liabilities      39,291       38,112       3 %     35,181       12 %
Total Liabilities     4,180,538       4,213,773       -1 %     3,666,058       14 %
                     
Common stock     233,341       233,634       0 %     232,001       1 %
Retained earnings     296,303       287,072       3 %     252,957       17 %
Accumulated other comprehensive income     3,286       5,922       -45 %     4,453       -26 %
Total Shareholders' Equity     532,930       526,628       1 %     489,411       9 %
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 4,713,468     $ 4,740,401       -1 %   $ 4,155,469       13 %
                     

                   
CONSOLIDATED STATEMENT OF OPERATIONS  
(Dollars In Thousands, Except Per Share Data) (Unaudited) 
    Quarter Ended   Three Mths   Quarter Ended   Twelve Mths 
    December 31, 2015   September 30, 2015   % Change   December 31, 2014   % Change
                     
INTEREST INCOME                    
Interest and fees on loans   $   43,797     $   41,877       5 %   $   40,709       8 %
Interest on investment securities     2,626       2,022       30 %     2,053       28 %
Interest on federal funds sold and others     228       303       -25 %     155       47 %
Total Interest Income     46,651       44,202       6 %     42,917       9 %
                     
INTEREST EXPENSE                    
Deposits     5,945       6,039       -2 %     4,783       24 %
FHLB advances and other borrowings     1,287       704       83 %     667       93 %
Total Interest Expense     7,232       6,743       7 %     5,450       33 %
                     
Net interest income before provision for losses on loans and loan commitments     39,419       37,459       5 %     37,467       5 %
Provision for losses on loans and loan commitments     -       700       -100 %     -       0 %
                     
Net interest income after provision for losses on loans and loan commitments     39,419       36,759       7 %     37,467       5 %
                     
NONINTEREST INCOME                    
Service charges on deposits     2,903       3,084       -6 %     3,105       -7 %
Net gain on sale of SBA loans     1,958       1,958       -0 %     3,465       -43 %
Net gain on sale of residential loans     898       1,204       -25 %     63       1325 %
Net gain on sale of other loans     62       -       0 %     -       0 %
Other     3,725       3,281       14 %     3,280       14 %
Total Noninterest Income     9,546       9,527       0 %     9,913       -4 %
                     
NONINTEREST EXPENSES                    
Salaries and employee benefits     13,676       13,639       0 %     12,359       11 %
Occupancy and equipment     3,390       3,341       1 %     3,385       0 %
Data processing     1,156       1,119       3 %     1,030       12 %
Merger-related costs     994       -       0 %     -       0 %
Other     7,348       7,651       -4 %     6,694       10 %
Total Noninterest Expenses     26,564       25,750       3 %     23,468       13 %
                     
Income before income taxes     22,401       20,536       9 %     23,912       -6 %
Income taxes provision     8,453       7,251       17 %     7,809       8 %
NET INCOME   $   13,948     $   13,285       5 %   $   16,103       -13 %
                                               
PER COMMON SHARE INFORMATION:                    
Basic income per common share   $   0.18     $   0.17       5 %   $   0.21       -14 %
Diluted income per common share   $   0.18     $   0.17       5 %   $   0.20       -14 %
                     
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:                    
Basic     78,601,082       78,556,455           78,315,686      
Diluted     78,942,078       78,907,223           78,628,965      
                                 

        
         
CONSOLIDATED STATEMENT OF OPERATIONS  
(Dollars In Thousands, Except Per Share Data) (Unaudited) 
    Twelve Months Ended   Twelve Mths
    December 31, 2015   December 31, 2014   % Change
             
INTEREST INCOME            
Interest and fees on loans   $   167,361     $   155,020       8 %
Interest on investment securities     8,545       8,195       4 %
Interest on federal funds sold and others     987       489       102 %
Total Interest Income     176,893       163,704       8 %
             
INTEREST EXPENSE            
Deposits     22,742       15,926       43 %
FHLB advances and other borrowings     3,309       2,241       48 %
Total Interest Expense     26,051       18,167       43 %
             
Net interest income before provision for losses on loans and loan commitments     150,842       145,537       4 %
Provision for losses on loans and loan commitments     700       -       0 %
             
Net interest income after provision for losses on loans and loan commitments     150,142       145,537       3 %
             
NONINTEREST INCOME            
Service charges on deposits     12,253       12,693       -3 %
Net gain on sale of SBA loans     8,792       14,366       -39 %
Net gain on sale of residential loans     3,290       366       799 %
Net gain on sale of other loans     4,988       230       2069 %
Other     16,331       13,586       20 %
Total Noninterest Income     45,654       41,241       11 %
             
NONINTEREST EXPENSES            
Salaries and employee benefits     54,144       49,724       9 %
FDIC indemnification impairment     -       597       -100 %
Occupancy and equipment     13,300       13,371       -1 %
Data processing     4,406       3,998       10 %
Merger-related costs     994       3,577       -72 %
Other     27,046       26,247       3 %
Total Noninterest Expenses     99,890       97,514       2 %
             
Income before income taxes     95,906       89,264       7 %
Income taxes provision     34,501       30,255       14 %
NET INCOME   $   61,405     $   59,009       4 %
             
PER COMMON SHARE INFORMATION:            
Basic income per common share   $   0.78     $   0.75       4 %
Diluted income per common share   $   0.78     $   0.75       4 %
             
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:            
Basic     78,486,883       78,250,901      
Diluted     78,818,556       78,591,374      
                     

         
                         
SUMMARY OF FINANCIAL DATA  
(Dollars In Thousands, Except Per Share Data) (Unaudited)
                         
    Quarter Ended    
AVERAGE BALANCES   December 31, 2015       September 30, 2015       December 31, 2014    
Average Assets   $   4,728,510         $   4,592,052         $   4,049,930      
Average Equity     534,938           524,962           485,482      
Average Net Loans     3,650,672           3,519,441           3,200,538      
Average Deposits     3,922,849           3,893,958           3,292,557      
Average Time Deposits of $100,000 or more     1,407,298           1,448,501           1,211,738      
Average FHLB & Other Borrowings     151,848           59,783           150,000      
Average Interest Earning Assets     4,445,026           4,308,140           3,764,271      
                         
    Twelve Months Ended    
AVERAGE BALANCES   December 31, 2015               December 31, 2014    
Average Assets   $   4,513,304                 $   3,762,400      
Average Equity     518,447                   466,398      
Average Net Loans     3,501,800                   3,017,409      
Average Deposits     3,762,323                   3,021,392      
Average Time Deposits of $100,000 or more     1,393,357                   970,481      
Average FHLB & Other Borrowings     118,435                   160,950      
Average Interest Earning Assets     4,233,219                   3,479,993      
                         
    Quarter Ended    
PROFITABILITY   December 31, 2015       September 30, 2015       December 31, 2014    
Annualized Return on Average Assets     1.18 %         1.16 %         1.59 %    
Annualized Return on Average Equity     10.43 %         10.12 %         13.27 %    
Efficiency Ratio     54.25 %         54.80 %         49.53 %    
Annualized Operating Expense/Average Assets     2.25 %         2.24 %         2.32 %    
Annualized Net Interest Margin     3.56 %         3.49 %         4.00 %    
                         
    Twelve Months Ended    
PROFITABILITY   December 31, 2015               December 31, 2014    
Annualized Return on Average Assets     1.36 %                 1.57 %    
Annualized Return on Average Equity     11.84 %                 12.65 %    
Efficiency Ratio     50.84 %                 52.21 %    
Annualized Operating Expense/Average Assets     2.21 %                 2.59 %    
Annualized Net Interest Margin     3.58 %                 4.20 %    
                         
    As Of
DEPOSIT COMPOSITION   December 31, 2015   Cost of Funds   September 30, 2015   Cost of Funds   December 31, 2014   Cost of Funds
Noninterest Bearing Demand Deposits     28.3 %     0.00 %     27.2 %     0.00 %     26.9 %     0.00 %
Savings & Interest Checking     4.5 %     1.26 %     4.1 %     1.29 %     4.7 %     1.33 %
Money Market Deposits     25.5 %     0.69 %     25.3 %     0.68 %     22.5 %     0.71 %
Time Deposits of $100,000 or More     35.1 %     0.89 %     36.5 %     0.89 %     38.0 %     0.79 %
Other Time Deposits     6.6 %     0.91 %     6.9 %     0.92 %     7.9 %     0.84 %
Total Deposits     100.0 %     0.61 %     100.0 %     0.62 %     100.0 %     0.58 %
       
    As Of  
CAPITAL RATIOS   December 31, 2015       September 30, 2015       December 31, 2014    
Tier 1 Leverage Ratio     11.30 %         11.54 %         12.11 %    
Tier 1 Common Equity Risk-Based Capital Ratio       11.23 %         11.47 %         N/A      
Tier 1 Risk-Based Capital Ratio     12.86 %         13.23 %         14.13 %    
Total Risk-Based Capital Ratio     14.11 %         14.48 %         15.38 %    
Total Shareholders' Equity   $   532,930         $   526,628         $   489,411      
Book Value Per Common Share   $   6.78         $   6.70         $   6.25      
Tangible Common Equity Per Common Share *   $   5.88         $   5.80         $   5.33      
Tangible Common Equity to Tangible Assets *     9.96 %         9.76 %         10.23 %    
                                     

* Excludes goodwill and other intangible assets
 
ALLOWANCE FOR LOAN LOSSES
(Dollars In Thousands) (Unaudited)      
    Quarter Ended
    December 31, 2015   September 30, 2015   June 30, 2015   March 31, 2015   December 31, 2014
                     
Balance at beginning of period   $   50,116     $   48,821     $   48,170     $   48,624     $   53,116  
Provision for losses on loans     -       500       -       -       -  
Recoveries on loans previously charged-off     3,694       2,670       1,210       870       1,821  
Gross loan charge-offs     (1,405 )     (1,875 )     (559 )     (1,324 )     (6,313 )
Balance at end of period   $   52,405     $   50,116     $   48,821     $   48,170     $   48,624  
                     
Net Loan Charge-offs / Average Net Loans     -0.06 %     -0.02 %     -0.02 %     0.01 %     0.14 %
Charge-offs / Average Total Loans     0.04 %     0.05 %     0.02 %     0.04 %     0.20 %
Allowance for Loan Losses / Gross Loans*     1.37 %     1.38 %     1.38 %     1.37 %     1.47 %
Allowance for Loan Losses / Non-accrual Loans     241.56 %     184.38 %     158.24 %     148.12 %     130.48 %
Allowance for Loan Losses / Non-performing Loans     241.56 %     184.38 %     158.24 %     148.12 %     130.48 %
Allowance for Loan Losses / Non-performing Assets       169.74 %     130.23 %     130.50 %     120.63 %     107.61 %
Allowance for Loan Losses / Classified Loans     65.22 %     59.53 %     47.88 %     48.55 %     51.59 %
                     
* Excludes held-for-sale loans                    
                     
NON-PERFORMING ASSETS
(Dollars In Thousands, Net of SBA Guaranty)   Quarter Ended  
(Unaudited)   December 31, 2015   September 30, 2015   June 30, 2015   March 31, 2015   December 31, 2014
                     
Non-accrual loans   $   21,694     $   27,181     $   30,852     $   32,522     $   37,265  
Loans 90 days or more past due and still accruing     -       -       -       -       -  
Total Non-performing Loans     21,694       27,181       30,852       32,522       37,265  
                     
Total OREO     9,179       11,302       6,559       7,411       7,922  
Total Non-performing Assets   $   30,873     $   38,483     $   37,411     $   39,933     $   45,187  
                     
Total Non-performing Loans/Gross Loans     0.56 %     0.74 %     0.87 %     0.92 %     1.12 %
Total Non-performing Assets/Total Assets     0.65 %     0.81 %     0.81 %     0.90 %     1.09 %
                     

ALLOWANCE FOR OFF-BALANCE SHEET ITEMS
(Dollars In Thousands ) (Unaudited)   Quarter Ended
    December 31, 2015   September 30, 2015   December 31, 2014
             
Balance at beginning of period   $   1,261     $   1,061     $   1,061  
Provision for losses on loan commitments     -       200       -  
Balance at end of period   $   1,261     $   1,261     $   1,061  
             

    Twelve Months Ended
    December 31, 2015   December 31, 2014
         
Balance at beginning of period   $   1,061     $   1,061  
Provision for losses on loan commitments     200       -  
Balance at end of period   $   1, 261     $   1,061  
         

 
WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
  For the Quarter Ended
  December 31, 2015   September 30, 2015   December 31, 2014
                                                                           
  Average   Interest   Average   Average   Interest   Average   Average   Interest   Average
INTEREST EARNING ASSETS Balance   Income/   Yield/   Balance   Income/   Yield/   Balance   Income/   Yield/
        Expense   Rate           Expense   Rate           Expense   Rate
                                               
LOANS:                            
Real Estate Loans $ 2,904,530     $ 34,851       4.80 %   $ 2,802,173     $ 33,750       4.82 %   $   2,666,855     $   33,339       5.00 %
Commercial Loans   743,686       7,662       4.12 %     714,169       7,116       3.99 %     530,293       5,717       4.31 %
Consumer Loans   12,650       96       3.04 %     13,053       108       3.31 %     13,162       129       3.92 %
Total Gross Loans   3,660,866       42,609       4.66 %     3,529,395       40,974       4.64 %     3,210,310       39,185       4.88 %
Deferred Fees and Costs \ Loan Fees   (10,194 )     1,188           (9,954 )     903           (9,772 )     1,524      
Total Loans *   3,650,672       43,797       4.80 %     3,519,441       41,877       4.76 %     3,200,538       40,709       5.09 %
                             
INVESTMENT SECURITIES AND                            
OTHER INTEREST-EARNING ASSETS:                            
Investment Securities**   496,571       2,626       2.24 %     355,828       2,022       2.45 %     366,229       2,053       2.43 %
Deposits Held In Other Institutions   4,223       22       2.08 %     7,576       31       1.64 %     8,402       34       1.62 %
Federal Funds Sold & Others   293,560       206       0.28 %     425,295       272       0.26 %     189,102       121       0.26 %
Total Investment Securities and                                              
  Other Earning Assets   794,354       2,854       1.51 %     788,699       2,325       1.26 %     563,733       2,208       1.69 %
                                         
TOTAL INTEREST-EARNING ASSETS $ 4,445,026     $ 46,651       4.21 %   $ 4,308,140     $ 44,202       4.12 %   $   3,764,271     $   42,917       4.58 %
                                               
Total Non-Interest Earning Assets   283,484               283,912               285,659          
TOTAL ASSETS $ 4,728,510             $ 4,592,052             $   4,049,930          
                                               
INTEREST BEARING LIABILITIES                            
                             
INTEREST-BEARING DEPOSITS:                            
Money Market $   982,301     $   1,684       0.69 %   $   978,220     $   1,657       0.68 %   $   748,031     $   1,320       0.71 %
NOW   34,586       23       0.27 %     30,916       22       0.29 %     31,364       17       0.22 %
Savings   132,186       504       1.53 %     128,597       493       1.53 %     127,610       510       1.60 %
Time Deposits of $100,000 or More   1,407,298       3,132       0.89 %     1,448,501       3,235       0.89 %     1,211,738       2,387       0.79 %
Other Time Deposits   263,322       602       0.91 %     273,433       632       0.93 %     262,777       549       0.84 %
Total Interest Bearing Deposits   2,819,693       5,945       0.84 %     2,859,667       6,039       0.85 %     2,381,520       4,783       0.80 %
                             
BORROWINGS:                            
FHLB Advances and Other Borrowings   151,848       828       2.18 %     59,783       257       1.72 %     150,000       235       0.63 %
Junior Subordinated Debentures   71,976       459       2.55 %     71,916       447       2.49 %     71,742       432       2.41 %
Total Borrowings   223,824       1,287       2.30 %     131,699       704       2.14 %     221,742       667       1.20 %
                             
TOTAL INTEREST BEARING LIABILITIES   $ 3,043,517     $   7,232       0.95 %   $ 2,991,366     $   6,743       0.90 %   $   2,603,262     $   5,450       0.84 %
                                               
Non-Interest Bearing Deposits   1,103,156               1,034,291               911,037          
Other Liabilities   46,899               41,433               50,149          
Shareholders' Equity   534,938               524,962               485,482          
TOTAL LIABILITIES AND EQUITY $ 4,728,510             $ 4,592,052             $   4,049,930          
                                               
NET INTEREST INCOME   $ 39,419           $ 37,459           $   37,467      
                             
NET INTEREST SPREAD         3.26 %           3.22 %           3.74 %
                             
NET INTEREST MARGIN         3.56 %           3.49 %           4.00 %
                             

* Allowance for loan losses excluded from average total loans and earning assets               ** 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, 2015   December 31, 2014
       
  Average   Interest   Average   Average   Interest   Average
INTEREST EARNING ASSETS Balance   Income/   Yield/   Balance   Income/   Yield/
        Expense   Rate           Expense   Rate
                               
LOANS:                  
Real Estate Loans $ 2,798,746     $   134,576       4.81 %   $   2,549,100     $   128,969       5.06 %
Commercial Loans   699,713       28,007       4.00 %     464,911       21,136       4.55 %
Consumer Loans   13,384       443       3.31 %     12,308       490       3.98 %
Total Gross Loans   3,511,843       163,026       4.64 %     3,026,319       150,595       4.98 %
Deferred Fees and Costs \ Loan Fees   (10,043 )     4,335           (8,910 )     4,425      
Total Loans *   3,501,800       167,361       4.78 %     3,017,409       155,020       5.14 %
                   
INVESTMENT SECURITIES AND                  
OTHER INTEREST-EARNING ASSETS:                  
Investment Securities**   388,183       8,545       2.37 %     350,661       8,195       2.54 %
Deposits Held In Other Institutions   6,938       118       1.70 %     17,105       238       1.39 %
Federal Funds Sold & Others   336,298       869       0.26 %     94,818       251       0.27 %
Total Investment Securities and                              
  Other Earning Assets   731,419       9,532       1.39 %     462,584       8,684       2.03 %
                               
TOTAL INTEREST-EARNING ASSETS $ 4,233,219     $   176,893       4.19 %   $   3,479,993     $   163,704       4.72 %
                               
Total Non-Interest Earning Assets   280,085               282,407          
TOTAL ASSETS $ 4,513,304             $   3,762,400          
                               
INTEREST BEARING LIABILITIES                  
                   
INTEREST-BEARING DEPOSITS:                  
Money Market $   924,673     $   6,211       0.67 %   $   770,316     $   5,219       0.68 %
NOW   30,874       82       0.27 %     32,240       63       0.20 %
Savings   129,961       1,993       1.53 %     121,878       1,926       1.58 %
Time Deposits of $100,000 or More   1,393,357       12,031       0.86 %     970,481       6,849       0.71 %
Other Time Deposits   269,842       2,425       0.90 %     244,144       1,869       0.77 %
Total Interest Bearing Deposits   2,748,707       22,742       0.83 %     2,139,059       15,926       0.75 %
                   
BORROWINGS:                  
FHLB Advances and Other Borrowings   118,435       1,537       1.30 %     160,950       522       0.32 %
Junior Subordinated Debentures   71,888       1,772       2.47 %     71,659       1,719       2.40 %
Total Borrowings   190,323       3,309       1.74 %     232,609       2,241       0.96 %
                   
TOTAL INTEREST BEARING LIABILITIES   $ 2,939,030     $   26,051       0.89 %   $   2,371,668     $   18,167       0.77 %
                               
Non-Interest Bearing Deposits   1,013,616               882,333          
Other Liabilities   42,211               42,001          
Shareholders' Equity   518,447               466,398          
TOTAL LIABILITIES AND EQUITY $ 4,513,304             $   3,762,400          
                               
NET INTEREST INCOME   $   150,842           $   145,537      
                   
NET INTEREST SPREAD         3.31 %           3.96 %
                   
NET INTEREST MARGIN         3.58 %           4.20 %
                   

* Allowance for loan losses excluded from average total loans and earning assets             ** Tax equivalent ratios for investment securities
 
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES :
 
TANGIBLE COMMON EQUITY AND TANGIBLE ASSETS *
(Dollars In Thousands, Except Share Data) (Unaudited)
  Quarter Ended
  December 31, 2015   September 30, 2015   December 31, 2014
           
Total shareholders' equity $   532,930     $   526,628     $   489,411  
Goodwill and other intangible assets, net   (70,658 )     (70,894 )     (71,628 )
Tangible common equity $   462,272     $   455,734     $   417,783  
           
Total assets $   4,713,468     $   4,740,401     $   4,155,469  
Goodwill and other intangible assets, net   (70,658 )     (70,894 )     (71,628 )
Tangible assets $   4,642,810     $   4,669,507     $   4,083,841  
           
Common shares outstanding   78,608,717       78,598,147       78,322,462  
           
           
NET INCOME AND EARNINGS PER SHARE BEFORE MERGER-RELATED COSTS
(Dollars In Thousands, Except Share and Per Share Data) (Unaudited) 
  Quarter Ended
  December 31, 2015   September 30, 2015   December 31, 2014
           
Net income $   13,948     $   13,285     $   16,103  
Add Back - merger-related costs   994       -       -  
Net change in tax provision expenses   -       -       -  
Net income before merger-related costs $   14,942     $   13,285     $   16,103  
           
PER COMMON SHARE INFORMATION:          
Basic income per common share $   0.19     $   0.17     $   0.21  
Diluted income per common share $   0.19     $   0.17     $   0.20  
           
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:          
Basic   78,601,082       78,556,455       78,315,686  
Diluted   78,942,078       78,907,223       78,628,965  
           

* Tangible Common Equity, Tangible Assets, and Income Before Merger-Related Costs are Non-GAAP financial measures. Management believes that presentation of non-GAAP financial information included in this press release are meaningful and useful in understanding the business metrics of the Company's operations. We provide non-GAAP financial information for informational purposes and to enhance an understanding of the Company's GAAP consolidated financial statements. Readers should consider this non-GAAP information in addition to, but not instead or as superior to, the Company's financial statements in accordance with GAAP. Non-GAAP financial information presented by us may be determined or calculated differently by other companies, limiting the usefulness of non-GAAP measures for comparative purposes
CONTACT:	Alex Ko, EVP & CFO, (213) 427-6560www.wilshirebank.com