LOS ANGELES, April 18, 2016 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (NASDAQ:WIBC) (the "Company"), the holding company for Wilshire Bank (the "Bank"), today reported net income of $13.2 million, or $0.17 per diluted common share, for the quarter ended March 31, 2016. This compares to net income of $18.6 million, or $0.24 per diluted common share, for the same period of the prior year, and net income of $13.9 million, or $0.18 per diluted common share, for the fourth quarter of 2015.

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "Following a very strong quarter of loan production to end 2015, we saw a lower level of loan demand across all of our business lines to start 2016. We believe this was primarily attributable to the first quarter typically being a seasonally slower period for loan production, as well as the impact of macroeconomic uncertainty that caused borrowers to be more cautious during the first two months of the year. However, market conditions appear to be improving, and we expect to see an increase in loan production as we move into the seasonally stronger periods of the year.

"The pending merger of equals with BBCN Bancorp is proceeding as anticipated and we are looking forward to the opportunities to provide our customers with a superior banking experience as part of the only Super Regional Korean-American bank in the United States," said Mr. Yoo.

Q1 2016 Summary
  • Net income totaled $13.2 mi llion, or $0.17 per diluted common share, for the first quarter of 2016
  • Return on average assets of 1.12% and return on average equity of 9.69% for the first quarter of 2016
  • Net interest margin of 3.54% for the first quarter of 2016, compared to 3.56% for the fourth quarter of 2015
  • Loan originations of $276.1 million during the first quarter of 2016, compared to $502.9 million for the fourth quarter of 2015
  • Loans receivable (net of deferred fees and costs) totaled $3.79 billion at March 31, 2016, a decrease of 1% from $3.82 billion at December 31, 2015
  • Total deposits were $3.85 billion at March 31, 2016, largely unchanged from $3.84 billion at December 31, 2015
  • Demand deposits totaled $1.11 billion at March 31, 2016, an increase of 2% from $1.09 billion at December 31, 2015

STATEMENT OF OPERATIONS

Net interest income before provision for losses on loans and loan commitments totaled $38.9 million for the first quarter of 2016, a decrease of 1.3% from $39.4 million for the fourth quarter of 2015 and an increase of 6.6% from $36.5 million for the first quarter of 2015. Relative to the fourth quarter of 2015, net interest income was negatively impacted by a decrease in net interest margin. 

Net interest margin was 3.54% for the first quarter of 2016, compared to 3.56% for the fourth quarter of 2015, and 3.69% for the first quarter of 2015. The decrease in net interest margin compared to the fourth quarter of 2015 was primarily attributable to a decline in the average yield on loans. Net interest margin compression from the decline in loan yield was partially offset by the increase in net interest margin that resulted from a decrease in lower yielding fed funds sold and others.

Loan yields were 4.61% for the first quarter of 2016, compared to 4.80% for the fourth quarter of 2015, and 4.78% for the first quarter of 2015. The decline in loan yields for the first quarter of 2016, compared to the fourth quarter of 2015, was primarily due to the decline in yield on commercial real estate loans as loans were originated and renewed at rates lower than the existing portfolio.

The total cost of deposits was 0.62% for the first quarter of 2016, compared to 0.61% for the fourth quarter of 2015, and 0.58% for the first quarter of 2015. Compared to the fourth quarter of 2015, the increase in the total cost of deposits was primarily due to a slight increase in interest rates in money market and time deposits.

Non-Interest Income

Total non-interest income was $8.5 million for the first quarter of 2016, compared to $9.5 million for the fourth quarter of 2015, and $15.3 million for the first quarter of 2015.

The Company recognized $2.7 million in gain on sales of loans during the first quarter of 2016, compared to $2.9 million for the fourth quarter of 2015, and $6.8 million for the first quarter of 2015. Gain on sale of loans in the first quarter of 2016 consisted of $1.3 million in gains on sales of SBA loans, $830,000 in gains on sales of residential mortgage loans, and $545,000 in gains from the sale of other loans. The decline in gain on sale of loans for the first quarter of 2016, compared to the previous quarter, was primarily due to a decline in sale of SBA loans, while the decline from the first quarter of 2015 was primarily due to a decline in the gain on sale of non-performing loans and a reduction in SBA loan sales.

Other non-interest income totaled $2.9 million for the first quarter of 2016, compared to $3.7 million for the fourth quarter of 2015 and $5.4 million for the first quarter of 2015. The decrease in other non-interest income compared to the fourth quarter of 2015 was due to a decline in recoveries on acquired assets in addition to a decline in loan servicing income. During the fourth quarter of 2015, the Company had a large increase in recoveries on assets acquired from BankAsiana and Saehan. The decrease in other non-interest income compared to the first quarter of 2015 was due to the decline in income recorded from the change in the fair value of the Company's servicing asset and to a lesser extent a decline in income recorded from the fair value change of mortgage derivatives.

Non-Interest Expense

Total non-interest expense was $26.7 million for the first quarter of 2016, compared with $26.6 million for the fourth quarter of 2015, and $22.9 million for the first quarter of 2015. Non-interest expense in the first quarter of 2016 included $458,000 in merger-related costs consisting of mostly legal expenses related to the planned merger of equals with BBCN.

Total salaries and employee benefits expense was $14.8 million for the first quarter of 2016, compared to $13.7 million for the fourth quarter of 2015, and $12.7 million for the first quarter of 2015. The increase in salaries and employee benefits for the first quarter of 2016 compared to the fourth quarter of 2015 was primarily due to an increase in stock-based compensation expense, incentive compensation, and commissions.

The Company's operating efficiency ratio was 56.3% for the first quarter of 2016, compared with 54.3% for the fourth quarter of 2015, and 44.3% for the first quarter of 2015.

BALANCE SHEET

Total loans receivable (net of deferred fees and costs) were $3.79 billion at March 31, 2016, compared to $3.82 billion at December 31, 2015. During the first quarter of 2016, a decrease in commercial real estate and commercial and industrial loans was partially offset by an increase in construction loans. Total loans held-for-sale increased to $90.4 million at March 31, 2016, from $25.2 million at December 31, 2015, due to an increase in both residential mortgage and SBA loans held-for-sale.

The following table shows total loans receivable, loans held-for-sale, and total loans by loan type:
    Quarter Ended
(Dollars In Thousands) (Unaudited)   March 31, 2016   December 31, 2015   September 30, 2015   June 30, 2015   March 31, 2015
                     
Construction   $ 36,181     $ 19,541     $ 18,146     $ 16,050     $ 26,117  
Real Estate Secured     2,962,964       2,992,824       2,810,420       2,723,458       2,701,800  
Commercial & Industrial     783,487       792,243       789,422       765,655       769,438  
Consumer     12,304       15,096       13,284       14,622       15,465  
Total Loans Receivable *     3,794,936       3,819,704       3,631,272       3,519,785       3,512,820  
Loans Held-For-Sale     90,392       25,223       13,316       25,269       10,204  
Total Loans *   $ 3,885,328     $ 3,844,927     $ 3,644,588     $ 3,545,054     $ 3,523,024  
                     
* 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)   March 31, 2016   December 31, 2015   September 30, 2015   June 30, 2015   March 31, 2015  
                                           
Real Estate Secured   $ 127,145       46 %   $ 273,613       54 %   $ 176,605       43 %   $ 121,066       41 %   $ 138,145       35 %  
Commercial & Industrial     34,268       12 %     94,128       19 %     107,952       26 %     46,438       16 %     59,837       15 %  
Consumer     -       0 %     55       0 %     360       0 %     124       0 %     1,640       0 %  
SBA     26,801       10 %     37,897       8 %     21,871       5 %     25,648       9 %     31,718       8 %  
Residential Mortgage     87,866       32 %     95,159       19 %     102,383       25 %     89,652       31 %     11,357       3 %  
Warehouse Lines of Credit*     -       0 %     2,000       0 %     7,000       1 %     10,000       3 %     155,000       39 %  
Total Loan Originations   $ 276,080       100 %   $ 502,852       100 %   $ 416,171       100 %   $ 292,928       100 %   $ 397,697       100 %  
                                           
* Warehouse lines of credit are reported as commercial and industrial loans on the consolidated balance sheet.
 

Originations for the first quarter of 2016 totaled $276.1 million, compared to $502.9 million for the fourth quarter of 2015, and $397.7 million for the first quarter of 2015. The decrease in loan originations for the three months ended March 31, 2016, compared to the previous quarter, was due to weaker loan demand experienced during the first quarter of 2016 due to seasonality and other market factors.

Total SBA loans held-for-sale at the end of the first quarter of 2016 were $11.6 million, compared to $5.5 million at the end of the previous quarter. Residential mortgage loans held-for-sale at the end of the first quarter of 2016 were $78.0 million, compared to $19.7 million at the end of the previous quarter.

Total deposits were $3.85 billion at March 31, 2016, compared with $3.84 billion at December 31, 2015, with increases in lower-cost deposit categories offsetting declines in time deposits.

CREDIT QUALITY

During the first quarter of 2016 the Company set aside $300,000 in provision for losses on loans and loan commitments.

The allowance for loan losses totaled $52.7 million, or 1.38% of gross loans (excluding loans held-for-sale), at March 31, 2016, compared to $52.4 million, or 1.37% of gross loans (excluding loans held-for-sale), at December 31, 2015. The coverage ratio of the allowance for loan losses to non-performing assets was 149.08% at March 31, 2016, compared with 169.74% at December 31, 2015.

Special mention loans, or criticized loans totaled $161.1 million at March 31, 2016, compared to $120.0 million at December 31, 2015. The increase in criticized loans at March 31, 2016 compared to December 31, 2015 was primarily due to one borrower with two commercial loans totaling $26.0 million. The commercial loans were transferred to the criticized category in the first quarter of 2016 due to temporary deterioration in the borrower's financial performance, but the Company does not expect any losses to be incurred on these commercial loans at this time. Total classified loans at March 31, 2016 was $85.2 million, compared to $80.4 million at December 31, 2015.

Non- Performing Loans

At March 31, 2016, total non-performing loans were $25.2 million, or 0.65% of total gross loans, compared to $21.7 million, or 0.56% of total gross loans, at December 31, 2015.

The following table shows total non-performing loans by loan type:

NON-PERFORMING LOANS   Quarter Ended
(Dollars In Thousands) (Unaudited)   Mar 31, 2016   Dec 31, 2015   Sep 30, 2015   Jun 30, 2015   Mar 31, 2015
(Net of SBA Guaranty Portions)                    
Real Estate Secured   $ 20,007     $ 15,422     $ 20,123     $ 23,235     $ 25,329  
Commercial & Industrial     5,194       6,272       7,058       7,617       7,193  
Total Non-Performing Loans   $ 25,201     $ 21,694     $ 27,181     $ 30,852     $ 32,522  
                     

Net Charge-offs/Recoveries

During the first quarter of 2016, the Company had total gross charge-offs of $598,000, and recoveries of $361,000, which resulted in net charge-offs of $237,000, compared to net recoveries of $2.3 million for the fourth 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)   Mar 31, 2016   Dec 31, 2015   Sep 30, 2015   Jun 30, 2015   Mar 31, 2015
                     
Real Estate Secured   $ 219     $ 13     $ 605     $ 249     $ 325  
Commercial & Industrial     379       1,392       1,270       310       999  
Total Loan Charge-Offs   $ 598     $ 1,405     $ 1,875     $ 559     $ 1,324  
                     

LOAN RE COVERIES   Quarter Ended  
(Dollars In Thousands) (Unaudited)   Mar 31, 2016   Dec 31, 2015   Sep 30, 2015   Jun 30, 2015   Mar 31, 2015
                     
Real Estate Secured   $ 46     $ 3,242     $ 1,867     $ 970     $ 193  
Commercial & Industrial     315       452       803       240       667  
Consumer     -       -       -       -       10  
Total Loan Recoveries   $ 361     $ 3,694     $ 2,670     $ 1,210     $ 870  
                     

Other measures of credit quality are shown in the following tables:
DELINQUENT  LOANS -  By Days Past Due   Quarter Ended
(Dollars In Thousands) (Unaudited)   Mar 31, 2016   Dec 31, 2015   Sep 30, 2015   Jun 30, 2015   Mar 31, 2015
(Net of SBA Guaranty Portions)                    
30 - 59 Days Past Due   $ 3,608     $ 4,315     $ 4,911     $ 3,615     $ 7,375  
60 - 89  Days Past Due     1,491       1,643       1,143       7,576       421  
90 Days, and still accruing     -       -       -       -       -  
Total Delinquent Loans   $ 5,099     $ 5,958     $ 6,054     $ 11,191     $ 7,796  
                     

          
TROUBLED DEBT RESTRUCTURED LOANS ("TDR")   Quarter Ended
(Dollars In Thousands) (Unaudited)   Mar 31, 2016   Dec 31, 2015   Sep 30, 2015   Jun 30, 2015   Mar 31, 2015
(Net of SBA Guaranty Portions)                    
Real Estate Secured   $ 23,376     $ 22,311     $ 24,188     $ 29,424     $ 28,612  
Commercial & Industrial     15,015       15,681       16,578       13,469       11,682  
Total TDR Loans   $ 38,391     $ 37,992     $ 40,766     $ 42,893     $ 40,294  
                     

LOAN CLASSIFICATIONS   Quarter Ended
(Dollars In Thousands) (Unaudited)   Mar 31, 2016   Dec 31, 2015   Sep 30, 2015   Jun 30, 2015   Mar 31, 2015
(Net of SBA Guaranty Portions)                    
Special Mention   $ 161,119     $ 120,019     $ 118,290     $ 86,118     $ 81,049  
Substandard     85,193       80,310       82,000       96,666       89,402  
Doubtful     41       41       2,182       5,301       9,822  
Total Criticized and Classified Loans   $ 246,353     $ 200,370     $ 202,472     $ 188,085     $ 180,273  
                     
Total Classified Loans   $ 85,234     $ 80,351     $ 84,182     $ 101,967     $ 99,224  
                     

CAPITAL RATIOS

As of March 31, 2016, 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)   March 31, 2016    Well Capitalized Regulatory Requirements   Total Excess Above Well Capitalized Requirements
Tier 1 Leverage Capital Ratio     11.67 %   5.00 %   308,094
Tier 1 Common Equity Risk-Based Capital Ratio     11.47 %   6.50 %   203,480
Tier 1 Risk-Based Capital Ratio     13.17 %   8.00 %   211,646
Total Risk-Based Capital Ratio     14.42 %   10.00 %   180,972
Tangible Common Equity To Tangible Assets *     10.23 %   N/A     N/A
Tangible Common Equity Per Common Share *   $   6.03     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 April 19, 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 83078775.

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 five loan production offices of which four are utilized primarily for the origination of loans under the Small Business Administration lending program located in 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 has filed with the SEC a preliminary Registration Statement on Form S-4 that includes a Joint Proxy Statement/Prospectus of Wilshire and BBCN, as well as other relevant documents concerning the proposed transaction. Shareholders are urged to read the preliminary Registration Statement and the Joint Proxy Statement/Prospectus regarding the merger and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they 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 BBCN and Wilshire in the solicitation of proxies in respect of the merger is included in the preliminary Registration Statement and Joint Proxy Statement/Prospectus 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, 2015, and BBCN Bancorp's Form 10-K for the year ended December 31, 2015, 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)   March 31,   December 31,   Three Months   March 31,   Twelve Months
    2016   2015   % Change   2015   % Change
ASSETS:                    
Cash and due from banks   $ 115,444     $ 118,089       -2 %   $ 353,438       -67 %
Federal funds sold and other cash equivalents     133       104       28 %     164       -19 %
Total Cash and Cash Equivalents     115,577       118,193       -2 %     353,602       -67 %
                     
Deposits held in other financial institutions     -       -       0 %     8,000       -100 %
                     
Investment securities available for sale     512,257       535,524       -4 %     329,343       56 %
Investment securities held to maturity     19       21       -10 %     25       -24 %
Total Investment Securities     512,276       535,545       -4 %     329,368       56 %
                     
Total Loans Held-For-Sale     90,392       25,223       258 %     10,204       786 %
                     
Real estate construction     36,181       19,541       85 %     26,117       39 %
Residential real estate     226,960       269,117       -16 %     171,117       33 %
Commercial real estate     2,736,004       2,723,707       0 %     2,530,683       8 %
Commercial and industrial     783,487       792,243       -1 %     769,438       2 %
Consumer     12,304       15,096       -18 %     15,465       -20 %
Total loans receivable, net of deferred fees and costs     3,794,936       3,819,704       -1 %     3,512,820       8 %
Allowance for loan losses     (52,668 )     (52,405 )     1 %     (48,170 )     9 %
Loans Receivable, Net of Allowance for Loan Losses     3,742,268       3,767,299       -1 %     3,464,650       8 %
                     
Accrued interest receivable     9,171       9,226       -1 %     8,581       7 %
Due from customers on acceptances     8,900       7,250       23 %     6,472       38 %
Other real estate owned     10,128       9,179       10 %     7,411       37 %
Premises and equipment     15,718       16,096       -2 %     14,058       12 %
Federal home loan bank (FHLB) stock, at cost     16,539       16,539       0 %     16,539       0 %
Cash surrender value of life insurance     25,174       25,028       1 %     23,470       7 %
Investment in affordable housing partnerships     47,257       48,867       -3 %     43,134       10 %
Deferred income taxes     17,897       21,489       -17 %     16,646       8 %
Servicing assets     19,324       19,894       -3 %     19,813       -2 %
Goodwill     67,473       67,473       0 %     67,473       0 %
Other assets     22,307       26,167       -15 %     23,857       -6 %
TOTAL ASSETS   $ 4,720,401     $ 4,713,468       0 %   $ 4,413,278       7 %
                     
LIABILITIES AND SHAREHOLDERS' EQUITY:                    
Non-interest bearing demand deposits   $ 1,106,805     $ 1,088,436       2 %   $ 997,803       11 %
Savings and interest checking     173,557       172,038       1 %     161,234       8 %
Money market deposits     993,733       977,697       2 %     886,092       12 %
Time deposits in denomination of $100,000 or more     1,336,311       1,349,440       -1 %     1,322,743       1 %
Other time deposits     243,166       252,265       -4 %     267,294       -9 %
Total Deposits     3,853,572       3,839,876       0 %     3,635,166       6 %
                     
FHLB borrowings     200,000       220,000       -9 %     150,000       33 %
Acceptance outstanding     8,900       7,250       23 %     6,472       38 %
Junior subordinated debentures     72,077       72,016       0 %     71,837       0 %
Accrued interest payable     2,400       2,105       14 %     2,406       0 %
Other liabilities     37,204       39,291       -5 %     41,818       -11 %
Total Liabilities     4,174,153       4,180,538       0 %     3,907,699       7 %
                     
Common stock     234,386       233,341       0 %     232,207       1 %
Retained earnings     304,763       296,303       3 %     267,660       14 %
Accumulated other comprehensive income     7,099       3,286       116 %     5,712       24 %
Total Shareholders' Equity     546,248       532,930       2 %     505,579       8 %
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 4,720,401     $ 4,713,468       0 %   $ 4,413,278       7 %
                     

CONSOLIDATED STATEMENT OF OPERATIONS                
(Dollars In Thousands, Except Per Share Data) (Unaudited)                
    Quarter Ended   Three Mths   Quarter Ended   Twelve Mths
    March 31, 2016   December 31, 2015   % Change   March 31, 2015   % Change
                     
INTEREST INCOME                    
Interest and fees on loans   $ 43,665   $ 43,797   0 %   $ 40,088   9 %
Interest on investment securities     2,460     2,626   -6 %     1,968   25 %
Interest on federal funds sold and others     124     228   -46 %     192   -35 %
Total Interest Income     46,249     46,651   -1 %     42,248   9 %
                     
INTEREST EXPENSE                    
Deposits     5,932     5,945   0 %     5,097   16 %
FHLB advances and other borrowings     1,408     1,287   9 %     660   113 %
Total Interest Expense     7,340     7,232   1 %     5,757   27 %
                     
Net interest income before provision for losses on loans and loan commitments     38,909     39,419   -1 %     36,491   7 %
Provision for losses on loans and loan commitments     300     -   0 %     -   0 %
                     
Net interest income after provision for losses on loans and loan commitments     38,609     39,419   -2 %     36,491   6 %
                     
NONINTEREST INCOME                    
Service charges on deposits     2,851     2,903   -2 %     3,107   -8 %
Gain on sale of SBA loans     1,297     1,958   -34 %     2,245   -42 %
Gain on sale of residential loans     830     898   -8 %     261   218 %
Gain on sale of other loans     545     62   779 %     4,300   -87 %
Other     2,935     3,725   -21 %     5,354   -45 %
Total Noninterest Income     8,458     9,546   -11 %     15,267   -45 %
                     
NONINTEREST EXPENSES                    
Salaries and employee benefits     14,783     13,676   8 %     12,665   17 %
Occupancy and equipment     3,276     3,390   -3 %     3,373   -3 %
Data processing     1,204     1,156   4 %     1,042   16 %
Merger-related costs     458     994   -54 %     -   0 %
Other     6,932     7,348   -6 %     5,829   19 %
Total Noninterest Expenses     26,653     26,564   0 %     22,909   16 %
                     
Income before income taxes     20,414     22,401   -9 %     28,849   -29 %
Income taxes provision     7,224     8,453   -15 %     10,230   -29 %
NET INCOME   $ 13,190   $ 13,948   -5 %   $ 18,619   -29 %
                     
PER COMMON SHARE INFORMATION:                    
Basic income per common share   $ 0.17   $ 0.18   -6 %   $ 0.24   -29 %
Diluted income per common share   $ 0.17   $ 0.18   -5 %   $ 0.24   -29 %
                     
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:                    
Basic     78,674,604     78,601,082         78,326,505    
Diluted     78,974,448     78,942,078         78,655,365    

SUMMARY OF FINANCIAL DATA                          
(Dollars In Thousands, Except Per Share Data) (Unaudited)                    
                         
         
    Quarter Ended    
AVERAGE BALANCES   March 31, 2016       December 31, 2015       March 31, 2015    
Average Assets   $ 4,698,333         $ 4,728,510         $ 4,255,625      
Average Equity     544,527           534,938           500,097      
Average Net Loans     3,789,591           3,650,672           3,352,433      
Average Deposits     3,833,838           3,922,849           3,490,282      
Average Time Deposits of $100,000 or more     1,342,858           1,407,298           1,297,961      
Average FHLB & Other Borrowings     201,209           151,848           150,655      
Average Interest Earning Assets     4,417,456           4,445,026           3,976,435      
                         
                         
         
    Quarter Ended    
PROFITABILITY   March 31, 2016       December 31, 2015       March 31, 2015    
Annualized Return on Average Assets     1.12 %         1.18 %         1.75 %    
Annualized Return on Average Equity     9.69 %         10.43 %         14.89 %    
Efficiency Ratio     56.27 %         54.25 %         44.26 %    
Annualized Operating Expense/Average Assets     2.27 %         2.25 %         2.15 %    
Annualized Net Interest Margin     3.54 %         3.56 %         3.69 %    
                         
                         
     
    As Of
DEPOSIT COMPOSITION   March 31, 2016   Cost of Funds   December 31, 2015   Cost of Funds   March 31, 2015   Cost of Funds
Noninterest Bearing Demand Deposits     28.7 %     0.00 %     28.3 %     0.00 %     27.4 %     0.00 %
Savings & Interest Checking     4.5 %     1.25 %     4.5 %     1.26 %     4.4 %     1.31 %
Money Market Deposits     25.8 %     0.71 %     25.5 %     0.69 %     24.4 %     0.67 %
Time Deposits of $100,000 or More     34.7 %     0.91 %     35.1 %     0.89 %     36.4 %     0.80 %
Other Time Deposits     6.3 %     0.92 %     6.6 %     0.91 %     7.4 %     0.86 %
Total Deposits     100.0 %     0.62 %     100.0 %     0.61 %     100.0 %     0.58 %
         
         
         
    As Of    
CAPITAL RATIOS   March 31, 2016       December 31, 2015       March 31, 2015    
Tier 1 Leverage Ratio     11.67 %         11.30 %         11.86 %    
Tier 1 Common Equity Risk-Based Capital Ratio     11.47 %         11.23 %         11.58 %    
Tier 1 Risk-Based Capital Ratio     13.17 %         12.86 %         13.38 %    
Total Risk-Based Capital Ratio     14.42 %         14.11 %         14.64 %    
Total Shareholders' Equity   $ 546,248         $ 532,930         $ 505,579      
Book Value Per Common Share   $ 6.93         $ 6.78         $ 6.45      
Tangible Common Equity Per Common Share *   $ 6.03         $ 5.88         $ 5.54      
Tangible Common Equity to Tangible Assets *     10.23 %         9.96 %         10.00 %    
* Excludes goodwill and other intangible assets
 

ALLOWANCE FOR LOAN LOSSES
(Dollars In Thousands) (Unaudited)      
    Quarter Ended
    March 31, 2016   December 31, 2015   September 30, 2015   June 30, 2015   March 31, 2015
                     
Balance at beginning of period   $ 52,405     $ 50,116     $ 48,821     $ 48,170     $ 48,624  
Provision for losses on loans     500       -       500       -         -  
Recoveries on loans previously charged-off     361       3,694       2,670       1,210       870  
Gross loan charge-offs     (598 )     (1,405 )     (1,875 )     (559 )     (1,324 )
Balance at end of period   $ 52,668     $ 52,405     $ 50,116     $ 48,821     $ 48,170  
                     
Net Loan Charge-offs / Average Net Loans     0.01 %     -0.06 %     -0.02 %     -0.02 %     0.01 %
Charge-offs / Average Total Loans     0.02 %     0.04 %     0.05 %     0.02 %     0.04 %
Allowance for Loan Losses / Gross Loans*     1.38 %     1.37 %     1.38 %     1.38 %     1.37 %
Allowance for Loan Losses / Non-accrual Loans     208.99 %     241.56 %     184.38 %     158.24 %     148.12 %
Allowance for Loan Losses / Non-performing Loans     208.99 %     241.56 %     184.38 %     158.24 %     148.12 %
Allowance for Loan Losses / Non-performing Assets     149.08 %     169.74 %     130.23 %     130.50 %     120,63 %
Allowance for Loan Losses / Classified Loans     61.79 %     65.22 %     59.53 %     47.88 %     48.55 %
                     
* Excludes held-for-sale loans                    
                     
                     
NON-PERFORMING ASSETS
(Dollars In Thousands, Net of SBA Guaranty)   Quarter Ended  
(Unaudited)   March 31, 2016   December 31, 2015   September 30, 2015   June 30, 2015   March 31, 2015
                     
Non-accrual loans   $ 25,201     $ 21,694     $ 27,181     $ 30,852     $ 32,522  
Loans 90 days or more past due and still accruing     -       -       -       -         -  
Total Non-performing Loans     25,201       21,694       27,181       30,852       32,522  
                     
Total OREO     10,128       9,179       11,302       6,559       7,411  
Total Non-performing Assets   $ 35,329     $ 30,873     $ 38,483     $ 37,411     $ 39,933  
                     
Total Non-performing Loans/Gross Loans     0.65 %     0.56 %     0.74 %     0.87 %     0.92 %
Total Non-performing Assets/Total Assets     0.75 %     0.65 %     0.81 %     0.81 %     0.90 %
                     
                     
                     
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS
(Dollars In Thousands ) (Unaudited)                    
    Quarter Ended        
    March 31, 2016   December 31, 2015   March 31, 2015        
                     
Balance at beginning of period   $ 1,261     $ 1,261     $ 1,061          
Provision for losses on loan commitments     (200 )     -       -          
Balance at end of period   $ 1,061     $ 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
    March 31, 2016   December 31, 2015   March 31, 2015
                 
    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   $ 3,050,251   $ 35,025       4.59 %   $ 2,904,530   $ 34,851       4.80 %   $ 2,732,436   $ 32,565       4.77 %
Commercial Loans     737,336     7,486       4.06 %     743,686     7,662       4.12 %     616,848     6,282       4.07 %
Consumer Loans     12,522     86       2.75 %     12,650     96       3.04 %     13,141     116       3.53 %
Total Gross Loans     3,800,109     42,597       4.48 %     3,660,866     42,609       4.66 %     3,362,425     38,963       4.64 %
Deferred Fees and Costs \ Loan Fees     (10,518 )   1,068           (10,194 )   1,188           (9,992 )   1,125      
Total Loans *     3,789,591     43,665       4.61 %     3,650,672     43,797       4.80 %     3,352,433     40,088       4.78 %
                               
INVESTMENT SECURITIES AND                              
OTHER INTEREST-EARNING ASSETS:                              
Investment Securities**     529,552     2,460       1.97 %     496,571     2,626       2.24 %     359,302     1,968       2.38 %
Deposits Held In Other Institutions     -     -       0.00 %     4,223     22       2.08 %     8,000     32       1.60 %
Federal Funds Sold & Others     98,313     124       0.50 %     293,560     206       0.28 %     256,700     160       0.25 %
Total Investment Securities and                              
  Other Earning Assets     627,865     2,584       1.74 %     794,354     2,854       1.51 %     624,002     2,160       1.49 %
                               
TOTAL INTEREST-EARNING ASSETS   $ 4,417,456   $ 46,249       4.20 %   $ 4,445,026   $ 46,651       4.21 %   $ 3,976,435   $ 42,248       4.27 %
                               
Total Non-Interest Earning Assets     280,877             283,484             279,190        
TOTAL ASSETS   $ 4,698,333           $ 4,728,510           $ 4,255,625        
                               
INTEREST BEARING LIABILITIES                              
                               
INTEREST-BEARING DEPOSITS:                              
Money Market   $ 1,008,081   $ 1,787       0.71 %   $ 982,301   $ 1,684       0.69 %   $ 844,576   $ 1,406       0.67 %
NOW     37,936     25       0.26 %     34,586     23       0.27 %     29,230     17       0.23 %
Savings     134,064     511       1.53 %     132,186     504       1.53 %     129,239     502       1.55 %
Time Deposits of $100,000 or More     1,342,858     3,044       0.91 %     1,407,298     3,132       0.89 %     1,297,961     2,603       0.80 %
Other Time Deposits     246,197     565       0.92 %     263,322     602       0.91 %     265,626     569       0.86 %
Total Interest Bearing Deposits     2,769,136     5,932       0.86 %     2,819,693     5,945       0.84 %     2,566,632     5,097       0.79 %
                               
BORROWINGS:                              
FHLB Advances and Other Borrowings     201,209     905       1.80 %     151,848     828       2.18 %     150,655     232       0.62 %
Junior Subordinated Debentures     72,037     503       2.79 %     71,976     459       2.55 %     71,799     428       2.38 %
Total Borrowings     273,246     1,408       2.06 %     223,824     1,287       2.30 %     222,454     660       1.19 %
                               
TOTAL INTEREST BEARING LIABILITIES   $ 3,042,382   $ 7,340       0.97 %   $ 3,043,517   $ 7,232       0.95 %   $ 2,789,086   $ 5,757       0.83 %
                               
Non-Interest Bearing Deposits     1,064,702             1,103,156             923,650        
Other Liabilities     46,722             46,899             42,792        
Shareholders' Equity     544,527             534,938             500,097        
TOTAL LIABILITIES AND EQUITY   $ 4,698,333           $ 4,728,510           $ 4,255,625        
                               
NET INTEREST INCOME     $ 38,909           $ 39,419           $ 36,491      
.                              
NET INTEREST SPREAD           3.24 %           3.26 %           3.44 %
                               
NET INTEREST MARGIN           3.54 %           3.56 %           3.69 %
                               
* 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
  March 31, 2016   December 31, 2015   March 31, 2015
           
Total shareholders' equity $ 546,248     $ 532,930     $ 505,579  
Goodwill and other intangible assets, net   (70,458 )     (70,658 )     (71,385 )
Tangible common equity $ 475,790     $ 462,272     $ 434,194  
           
Total assets $ 4,720,401     $ 4,713,468     $ 4,413,278  
Goodwill and other intangible assets, net   (70,458 )     (70,658 )     (71,385 )
Tangible assets $ 4,649,943     $ 4,642,810     $ 4,341,893  
           
Common shares outstanding   78,845,873       78,608,717       78,329,458  
           
 
Tangible Common Equity and Tangible Assets 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.
 
WILSHIRE BANCORP, INC. Alex Ko, EVP & CFO, (213) 427-6560www.wilshirebank.com