LOS ANGELES, July 18, 2016 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (NASDAQ:WIBC) (the "Company"), the holding company for Wilshire Bank (the "Bank"), today reported net income of $17.4 million, or $0.22 per diluted common share, for the quarter ended June 30, 2016. This compares to net income of $15.6 million, or $0.20 per diluted common share, for the same period of the prior year, and net income of $13.2 million, or $0.17 per diluted common share, for the first quarter of 2016.

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "We delivered a strong quarter with improvements in loan growth, non-interest income, credit quality and operating efficiencies. We continue to see well diversified loan production with growth in our commercial and construction portfolios, off-setting a slight decline in our commercial real estate portfolio.

"As we near the completion of our merger of equals with BBCN Bancorp, we are eagerly looking forward to the opportunity to better serve our markets as the premier Korean-American bank in the United States," said Mr. Yoo.

Q2 2016 Summary
  • Net income totaled $17.4 million, or $0.22 per diluted common share, for the second quarter of 2016
  • Return on average assets of 1.46% and return on average equity of 12.51% for the second quarter of 2016
  • Net interest margin of 3.53% for the second quarter of 2016, compared to 3.54% for the first quarter of 2016
  • Gain on sale of OREO was $3.7 million for the second quarter of 2016, compared to $0 for the first quarter of 2016
  • Loan originations of $408.1 million during the second quarter of 2016, compared to $276.1 million for the first quarter of 2016 
  • Loans receivable (net of deferred fees and costs) totaled $3.85 billion at June 30, 2016, an increase of 1.5% from $3.79 billion at March 31, 2016
  • Total deposits were $4.01 billion at June 30, 2016, an increase of 4.1% from $3.85 billion at March 31, 2016
  • Demand deposits totaled $1.13 billion at June 30, 2016, an increase of 2.5% from $1.11 billion at March 31, 2016

STATEMENT OF OPERATIONS

Net interest income before provision for losses on loans and loan commitments totaled $39.2 million for the second quarter of 2016, an increase of 0.7% from $38.9 million for the first quarter of 2016 and an increase of 4.5% from $37.5 million for the second quarter of 2015. Relative to the first quarter of 2016, an increase in average earning assets was partially offset by a slight decline in net interest margin.

Net interest margin was 3.53% for the second quarter of 2016, compared to 3.54% for the first quarter of 2016, and 3.59% for the second quarter of 2015. The decrease in net interest margin compared to the first quarter of 2016 was primarily attributable to an increase in the cost of deposits.

Loan yields were 4.62% for the second quarter of 2016, compared to 4.61% for the first quarter of 2016, and 4.78% for the second quarter of 2015. The increase in loan yields for the second quarter of 2016, compared to the first quarter of 2016, was primarily due to an increase in yield on commercial real estate loans.

The total cost of deposits was 0.64% for the second quarter of 2016, compared to 0.62% for the first quarter of 2016, and 0.61% for the second quarter of 2015. Compared to the first quarter of 2016, the increase in the total cost of deposits was attributable to increases in rates in all deposit categories.

Non-Interest Income

Total non-interest income was $9.7 million for the second quarter of 2016, compared to $8.5 million for the first quarter of 2016, and $11.3 million for the second quarter of 2015.

The Company recognized $3.4 million in gain on sale of loans during the second quarter of 2016, compared to $2.7 million for the first quarter of 2016, and $4.2 million for the second quarter of 2015. The increase in gain on sale of loans for the second quarter of 2016, compared to the previous quarter, was due to an increase in sales of Small Business Administration ("SBA") and residential mortgage loans. Gain on sale of loans in the second quarter of 2016 consisted of $2.0 million in gains on sales of SBA loans and $1.4 million in gains on sales of residential mortgage loans.

Other non-interest income totaled $3.5 million for the second quarter of 2016, compared to $2.9 million for the first quarter of 2016 and $4.0 million for the second quarter of 2015. The increase in other non-interest income, compared to the first quarter of 2016, was due to an increase in loan servicing income and income recorded from the fair value change of servicing assets.

Non-Interest Expense

Total non-interest expense was $21.6 million for the second quarter of 2016, compared with $26.7 million for the first quarter of 2016, and $24.7 million for the second quarter of 2015. Non-interest expense in the second quarter of 2016 included $527,000 in merger-related costs consisting mostly of consulting and legal expenses related to the proposed merger of equals with BBCN.

Total salaries and employee benefits expense was $13.1 million for the second quarter of 2016, compared to $14.8 million for the first quarter of 2016, and $14.2 million for the second quarter of 2015. The decrease in salaries and employee benefits for the second quarter of 2016, compared to the previous quarter, was primarily due to lower payroll taxes, bonus accrual expense, and stock-based compensation expense.

Other non-interest expense was $3.4 million for the second quarter of 2016, compared with $6.9 million for the first quarter of 2016, and $6.2 million for the second quarter of 2015. Other non-interest expense for the second quarter of 2016 was reduced by a $3.7 million gain on the sale of other real estate owned (OREO).

The Company's operating efficiency ratio was 44.2% for the second quarter of 2016, compared with 56.3% for the first quarter of 2016, and 50.6% for the second quarter of 2015. The efficiency ratio before including gain on sale of OREO of $3.7 million was 51.8% for the second quarter of 2016.*

* "Efficiency ratio before gain on sale of OREO" is a Non-GAAP measure 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.

BALANCE SHEET

Total loans receivable (net of deferred fees and costs) were $3.85 billion at June 30, 2016, compared to $3.79 billion at March 31, 2016. During the second quarter of 2016, increases in commercial and industrial loans, residential real estate loans and real estate construction loans receivable were partially offset by a decrease in commercial real estate loans. Total loans held-for-sale decreased to $24.2 million at June 30, 2016, from $90.4 million at March 31, 2016, due to a decrease in both residential mortgage and SBA loans held-for-sale. During the second quarter of 2016, part of the residential mortgage loans sold were through a bulk sale.

The following table shows total loans receivable, loans held-for-sale, and total loans by loan type:
  Quarter Ended
(Dollars In Thousands) (Unaudited) June 30, 2016   March 31, 2016   December 31, 2015   September 30, 2015   June 30, 2015
                   
Construction $   50,240     $   36,181     $   19,541     $   18,146     $   16,050  
Real Estate Secured   2,954,090       2,962,964       2,992,824       2,810,420       2,723,458  
Commercial & Industrial   838,008       783,487       792,243       789,422       765,655  
Consumer   9,590       12,304       15,096       13,284       14,622  
  Total Loans Receivable *   3,851,928       3,794,936       3,819,704       3,631,272       3,519,785  
  Loans Held-For-Sale   24,154       90,392       25,223       13,316       25,269  
    Total Loans * $   3,876,082     $   3,885,328     $   3,844,927     $   3,644,588     $   3,545,054  
                   
  * 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) June 30, 2016   March 31, 2016   December 31, 2015   September 30, 2015   June 30, 2015
                                       
Real Estate Secured $ 164,373       40 %   $ 127,145       46 %   $ 273,613       54 %   $ 176,605       43 %   $ 121,066       41 %
Commercial & Industrial   127,709       31 %     34,268       12 %     94,128       19 %     107,952       26 %     46,438       16 %
Consumer   46       0 %   -       0 %     55       0 %     360       0 %     124       0 %
SBA   26,314       7 %     26,801       10 %     37,897       8 %     21,871       5 %     25,648       9 %
Residential Mortgage   69,621       17 %     87,866       32 %     95,159       19 %     102,383       25 %     89,652       31 %
Warehouse Lines of Credit*   20,000       5 %   -       0 %     2,000       0 %     7,000       1 %     10,000       3 %
  Total Loan Originations $ 408,063       100 %   $ 276,080       100 %   $ 502,852       100 %   $ 416,171       100 %   $ 292,928       100 %
                                       
  * Warehouse lines of credit are reported as commercial and industrial loans on the consolidated balance sheet.

Originations for the second quarter of 2016 totaled $408.1 million, compared to $276.1 million for the first quarter of 2016, and $292.9 million for the second quarter of 2015. The increase in loan originations for the three months ended June 30, 2016, compared to the previous quarter, was primarily due to an increase in commercial and industrial loans and warehouse lines of credit.

Total SBA loans held-for-sale at the end of the second quarter of 2016 were $8.2 million, compared to $11.6 million at the end of the previous quarter. Residential mortgage loans held-for-sale at the end of the second quarter of 2016 were $15.2 million, compared to $78.0 million at the end of the previous quarter.

Total deposits increased to $4.01 billion at June 30, 2016, from $3.85 billion at March 31, 2016, primarily due to increases in non-interest bearing demand deposits and time deposits.

CREDIT QUALITY

During the second quarter of 2016, the Company continued to experience stable asset quality and a continued low level of charge-offs. As a result, the Company determined that no provision for losses on loans and loan commitments was required for the second quarter of 2016.

The allowance for loan losses totaled $53.2 million, or 1.38% of gross loans (excluding loans held-for-sale), at June 30, 2016, compared to $52.7 million, or 1.38% of gross loans (excluding loans held-for-sale), at March 31, 2016. The coverage ratio of the allowance for loan losses to non-performing assets was 173.24% at June 30, 2016, compared with 149.08% at March 31, 2016.

Non- Performing Loans

At June 30, 2016, total non-performing loans were $19.9 million, or 0.51% of gross loans, compared to $25.2 million, or 0.65% of total gross loans, at March 31, 2016.

The following table shows total non-performing loans by loan type:
NON-PERFORMING LOANS Quarter Ended
(Dollars In Thousands) (Unaudited) Jun 30, 2016   Mar 31, 2016   Dec 31, 2015   Sep 30, 2015   Jun 30, 2015
(Net of SBA Guaranty Portions)                  
  Real Estate Secured $   15,510     $   20,007     $   15,422     $   20,123     $   23,235  
  Commercial & Industrial   4,344       5,194       6,272       7,058       7,617  
    Total Non-Performing Loans $   19,854     $   25,201     $   21,694     $   27,181     $   30,852  
                   

Net Charge-offs/Recoveries

During the second quarter of 2016, the Company had total gross charge-offs of $479,000, and recoveries of $993,000, which resulted in net recoveries of $514,000, compared to net charge-offs of $237,000 for the first quarter of 2016.

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

GROSS LOAN CHARGE-OFFS Quarter Ended 
(Dollars In Thousands) (Unaudited) Jun 30, 2016   Mar 31, 2016   Dec 31, 2015   Sep 30, 2015   Jun 30, 2015
                   
   Real Estate Secured $   82     $   219     $   13     $   605     $   249  
   Commercial & Industrial   296       379       1,392       1,270       310  
   Consumer   101     -       -       -       -    
        Total Loan Charge-Offs $   479     $   598     $   1,405     $   1,875     $   559  
                   

LOAN RE COVERIES Quarter Ended 
(Dollars In Thousands) (Unaudited) Jun 30, 2016   Mar 31, 2016   Dec 31, 2015   Sep 30, 2015   Jun 30, 2015
                   
   Real Estate Secured $   796     $   46     $   3,242     $   1,867     $   970  
   Commercial & Industrial   191       315       452       803       240  
   Consumer   6     -       -       -       -    
        Total Loan Recoveries $   993     $   361     $   3,694     $   2,670     $   1,210  
                   

Other measures of credit quality are shown in the following tables:
DELINQUENT  LOANS -  By Days Past Due                   Quarter Ended
(Dollars In Thousands) (Unaudited) Jun 30, 2016   Mar 31, 2016   Dec 31, 2015   Sep 30, 2015   Jun 30, 2015
(Net of SBA Guaranty Portions)                  
  30 - 59 Days Past Due $   7,454     $   3,608     $   4,315     $   4,911     $   3,615  
  60 - 89  Days Past Due   253       1,491       1,643       1,143       7,576  
  90 Days, and still accruing -     -     -     -     -  
    Total Delinquent Loans $   7,707     $   5,099     $   5,958     $   6,054     $   11,191  
                   

TROUBLED DEBT RESTRUCTURED LOANS ("TDR") Quarter Ended
(Dollars In Thousands) (Unaudited) Jun 30, 2016   Mar 31, 2016   Dec 31, 2015   Sep 30, 2015   Jun 30, 2015  
(Net of SBA Guaranty Portions)                    
  Real Estate Secured $   20,671     $   23,376     $   22,311     $   24,188     $   29,424    
  Commercial & Industrial   15,249       15,015       15,681       16,578       13,469    
    Total TDR Loans $   35,920     $   38,391     $   37,992     $   40,766     $   42,893    
                     

LOAN CLASSIFICATIONS Quarter Ended
(Dollars In Thousands) (Unaudited)                                   Jun 30, 2016   Mar 31, 2016   Dec 31, 2015   Sep 30, 2015   Jun 30, 2015
(Net of SBA Guaranty Portions)                  
  Special Mention $   162,842     $   161,119     $   120,019     $   118,290     $   86,118  
  Substandard   84,754       85,193       80,310       82,000       96,666  
  Doubtful   41       41       41       2,182       5,301  
    Total Criticized and Classified Loans $   247,637     $   246,353     $   200,370     $   202,472     $   188,085  
                   
    Total Classified Loans $   84,795     $   85,234     $   80,351     $   84,182     $   101,967  
                   

CAPITAL RATIOS

As of June 30, 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) June 30, 2016   Well Capitalized Regulatory Requirements   Total Excess Above Well Capitalized Requirements
  Tier 1 Leverage Capital Ratio   11.85 %     5.00 %   319,311
  Tier 1 Common Equity Risk-Based Capital Ratio   11.67 %     6.50 %   231,807
  Tier 1 Risk-Based Capital Ratio   13.35 %     8.00 %   221,338
  Total Risk-Based Capital Ratio   14.60 %     10.00 %   190,376
  Tangible Common Equity To Tangible Assets *   10.18 %   N/A           N/A
  Tangible Common Equity Per Common Share * $   6.22     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 July 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 844-578-9673 (domestic) or 508-637-5657 (international) and providing passcode number 42220175.

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 three 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 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.

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 Wilshire Bancorp, BBCN 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 remains subject to 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, as amended, and BBCN Bancorp's Form 10-K for the year ended December 31, 2015, 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)   June 30,   March 31,   Three Months   June 30,   Twelve Months
      2016       2016     % Change     2015     % Change
ASSETS:                    
  Cash and due from banks   $   301,103     $   115,444       161 %   $   475,834       -37 %
  Federal funds sold and other cash equivalents     136       133       2 %     54       152 %
Total Cash and Cash Equivalents     301,239       115,577       161 %     475,888       -37 %
                     
Deposits held in other financial institutions   -     -       0 %     7,750       -100 %
                     
  Investment securities available for sale     490,574       512,257       -4 %     358,331       37 %
  Investment securities held to maturity     18       19       -5 %     24       -25 %
Total Investment Securities     490,592       512,276       -4 %     358,355       37 %
                     
Total Loans Held-For-Sale     24,154       90,392       -73 %     25,269       -4 %
                     
  Real estate construction     50,240       36,181       39 %     16,050       213 %
  Residential real estate     234,979       226,960       4 %     192,732       22 %
  Commercial real estate     2,719,111       2,736,004       -1 %     2,530,726       7 %
  Commercial and industrial     838,008       783,487       7 %     765,655       9 %
  Consumer     9,590       12,304       -22 %     14,622       -34 %
Total loans receivable, net of deferred fees and costs     3,851,928       3,794,936       2 %     3,519,785       9 %
Allowance for loan losses     (53,182 )     (52,668 )     1 %     (48,821 )     9 %
Loans Receivable, Net of Allowance for Loan Losses     3,798,746       3,742,268       2 %     3,470,964       9 %
                     
  Accrued interest receivable     8,882       9,171       -3 %     8,635       3 %
  Due from customers on acceptances     8,900       8,900       0 %     3,940       126 %
  Other real estate owned     10,844       10,128       7 %     6,559       65 %
  Premises and equipment     15,077       15,718       -4 %     14,366       5 %
  Federal home loan bank (FHLB) stock, at cost     16,539       16,539       0 %     16,539       0 %
  Cash surrender value of life insurance     25,317       25,174       1 %     23,610       7 %
  Investment in affordable housing partnerships     45,627       47,257       -3 %     42,193       8 %
  Deferred income taxes     17,803       17,897       -1 %     17,475       2 %
  Servicing assets     19,219       19,324       -1 %     20,123       -4 %
  Goodwill     67,473       67,473       0 %     67,473       0 %
  Other assets     36,373       22,307       63 %     31,958       14 %
TOTAL ASSETS   $ 4,886,785     $ 4,720,401       4 %   $ 4,591,097       6 %
                     
LIABILITIES AND SHAREHOLDERS' EQUITY:                    
  Non-interest bearing demand deposits   $ 1,134,671     $ 1,106,805       3 %   $ 1,025,133       11 %
  Savings and interest checking     174,123       173,557       0 %     158,734       10 %
  Money market deposits     1,005,142       993,733       1 %     962,855       4 %
  Time deposits in denomination of $100,000 or more     1,407,025       1,336,311       5 %     1,475,340       -5 %
  Other time deposits     289,358       243,166       19 %     280,894       3 %
Total Deposits     4,010,319       3,853,572       4 %     3,902,956       3 %
                     
  FHLB borrowings     200,000       200,000       0 %     50,000       300 %
  Acceptance outstanding     8,900       8,900       0 %     3,940       126 %
  Junior subordinated debentures     72,139       72,077       0 %     71,895       0 %
  Accrued interest payable     2,417       2,400       1 %     2,373       2 %
  Other liabilities      32,396       37,204       -13 %     44,350       -27 %
Total Liabilities     4,326,171       4,174,153       4 %     4,075,514       6 %
                     
  Common stock     234,917       234,386       0 %     232,893       1 %
  Retained earnings     317,393       304,763       4 %     278,503       14 %
  Accumulated other comprehensive income     8,304       7,099       17 %     4,187       98 %
Total Shareholders' Equity     560,614       546,248       3 %     515,583       9 %
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 4,886,785     $ 4,720,401       4 %   $ 4,591,097       6 %
                     

CONSOLIDATED STATEMENT OF OPERATIONS                
(Dollars In Thousands, Except Per Share Data) (Unaudited)                
    Quarter Ended   Three Mths   Quarter Ended   Twelve Mths
    June 30, 2016   March 31, 2016   % Change   June 30, 2015   % Change
                     
INTEREST INCOME                    
  Interest and fees on loans   $   44,273     $   43,665       1 %   $   41,599       6 %
  Interest on investment securities     2,328       2,460       -5 %     1,929       21 %
  Interest on federal funds sold and others     149       124       20 %     264       -44 %
Total Interest Income     46,750       46,249       1 %     43,792       7 %
                     
INTEREST EXPENSE                    
  Deposits     6,160       5,932       4 %     5,661       9 %
  FHLB advances and other borrowings     1,423       1,408       1 %     658       116 %
Total Interest Expense     7,583       7,340       3 %     6,319       20 %
                     
  Net interest income before provision for losses on                    
    loans and loan commitments     39,167       38,909       1 %     37,473       5 %
  Provision for losses on loans and loan commitments   -       300       -100 %   -       0 %
                     
  Net interest income after provision for losses on loans and loan commitments     39,167       38,609       1 %     37,473       5 %
                     
NONINTEREST INCOME                    
  Service charges on deposits     2,748       2,851       -4 %     3,159       -13 %
  Gain on sale of SBA loans     1,956       1,297       51 %     2,631       -26 %
  Gain on sale of residential loans     1,450       830       75 %     928       56 %
  Gain on sale of other loans   -       545       -100 %     625       -100 %
  Other     3,539       2,935       21 %     3,971       -11 %
    Total Noninterest Income     9,693       8,458       15 %     11,314       -14 %
                     
NONINTEREST EXPENSES                    
  Salaries and employee benefits     13,148       14,783       -11 %     14,164       -7 %
  Occupancy and equipment     3,236       3,276       -1 %     3,196       1 %
  Data processing     1,273       1,204       6 %     1,089       17 %
  Merger-related costs     527       458       15 %   -       0 %
  Other     3,395       6,932       -51 %     6,218       -45 %
Total Noninterest Expenses     21,579       26,653       -19 %     24,667       -13 %
                     
  Income before income taxes     27,281       20,414       34 %     24,120       13 %
  Income taxes provision     9,917       7,224       37 %     8,567       16 %
NET INCOME   $   17,364     $   13,190       32 %   $   15,553       12 %
                     
PER COMMON SHARE INFORMATION:                    
  Basic income per common share   $   0.22     $   0.17       31 %   $   0.20       11 %
  Diluted income per common share   $   0.22     $   0.17       31 %   $   0.20       11 %
                     
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:                    
  Basic     78,872,353       78,674,604           78,459,708      
  Diluted     79,137,512       78,974,448           78,818,847      

         
CONSOLIDATED STATEMENT OF OPERATIONS        
(Dollars In Thousands, Except Per Share Data) (Unaudited)        
    Six Months Ended   Twelve Mths
    June 30, 2016   June 30, 2015   % Change
             
INTEREST INCOME            
  Interest and fees on loans   $   87,938     $   81,687       8 %
  Interest on investment securities     4,788       3,897       23 %
  Interest on federal funds sold and others     273       456       -40 %
Total Interest Income     92,999       86,040       8 %
             
INTEREST EXPENSE            
  Deposits     12,092       10,758       12 %
  FHLB advances and other borrowings     2,831       1,318       115 %
Total Interest Expense     14,923       12,076       24 %
             
  Net interest income before provision for losses on loans and loan commitments     78,076       73,964       6 %
  Provision for losses on loans and loan commitments     300     -       0 %
             
  Net interest income after provision for losses on loans and loan commitments     77,776       73,964       5 %
             
NONINTEREST INCOME            
  Service charges on deposits     5,599       6,266       -11 %
  Gain on sale of SBA loans     3,253       4,876       -33 %
  Gain on sale of residential loans     2,280       1,189       92 %
  Gain on sale of other loans     545       4,925       -89 %
  Other     6,474       9,325       -31 %
    Total Noninterest Income     18,151       26,581       -32 %
             
NONINTEREST EXPENSES            
  Salaries and employee benefits     27,931       26,829       4 %
  Occupancy and equipment     6,512       6,569       -1 %
  Data processing     2,477       2,131       16 %
  Merger-related costs     985     -       0 %
  Other     10,327       12,047       -14 %
Total Noninterest Expenses     48,232       47,576       1 %
             
  Income before income taxes     47,695       52,969       -10 %
  Income taxes provision     17,141       18,797       -9 %
NET INCOME   $   30,554     $   34,172       -11 %
             
PER COMMON SHARE INFORMATION:            
  Basic income per common share   $   0.39     $   0.44       -11 %
  Diluted income per common share   $   0.39     $   0.43       -11 %
             
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:            
  Basic     78,773,479       78,393,475      
  Diluted     79,048,014       78,736,870      

SUMMARY OF FINANCIAL DATA                        
(Dollars In Thousands, Except Per Share Data) (Unaudited)                    
                         
    Quarter Ended    
AVERAGE BALANCES   June 30, 2016       March 31, 2016       June 30, 2015    
 Average Assets   $   4,742,224         $   4,698,333         $   4,472,065      
 Average Equity     555,351           544,527           513,338      
 Average Net Loans     3,837,219           3,789,591           3,481,181      
 Average Deposits     3,866,991           3,833,838           3,736,003      
 Average Time Deposits of $100,000 or more     1,358,446           1,342,858           1,417,860      
 Average FHLB & Other Borrowings     200,000           201,209           112,088      
 Average Interest Earning Assets     4,457,822           4,417,456           4,197,297      
                         
    Six Months Ended    
AVERAGE BALANCES   June 30, 2016               June 30, 2015    
 Average Assets   $   4,720,279                 $   4,364,443      
 Average Equity     549,939                   506,754      
 Average Net Loans     3,813,405                   3,417,163      
 Average Deposits     3,850,415                   3,613,821      
 Average Time Deposits of $100,000 or more     1,350,652                   1,358,242      
 Average FHLB & Other Borrowings     200,604                   131,265      
 Average Interest Earning Assets     4,437,639                   4,087,478      
                         
    Quarter Ended    
PROFITABILITY   June 30, 2016       March 31, 2016       June 30, 2015    
 Annualized Return on Average Assets     1.46 %         1.12 %         1.39 %    
 Annualized Return on Average Equity     12.51 %         9.69 %         12.12 %    
 Efficiency Ratio     44.16 %         56.27 %         50.56 %    
 Annualized Operating Expense/Average Assets     1.82 %         2.27 %         2.21 %    
 Annualized Net Interest Margin     3.53 %         3.54 %         3.59 %    
                         
    Six Months Ended    
PROFITABILITY   June 30, 2016               June 30, 2015    
 Annualized Return on Average Assets     1.29 %                 1.57 %    
 Annualized Return on Average Equity     11.11 %                 13.49 %    
 Efficiency Ratio     50.12 %                 47.32 %    
 Annualized Operating Expense/Average Assets     2.04 %                 2.18 %    
 Annualized Net Interest Margin     3.53 %                 3.64 %    
                         
    As Of
DEPOSIT COMPOSITION   June 30, 2016   Cost of Funds   March 31, 2016   Cost of Funds   June 30, 2015   Cost of Funds
 Noninterest Bearing Demand Deposits     28.3 %     0.00 %     28.7 %     0.00 %     26.3 %     0.00 %
 Savings & Interest Checking     4.3 %     1.28 %     4.5 %     1.25 %     4.1 %     1.30 %
 Money Market Deposits     25.1 %     0.73 %     25.8 %     0.71 %     24.7 %     0.66 %
 Time Deposits of $100,000 or More     35.1 %     0.94 %     34.7 %     0.91 %     37.8 %     0.86 %
 Other Time Deposits     7.2 %     0.95 %     6.3 %     0.92 %     7.2 %     0.90 %
   Total Deposits     100.0 %     0.64 %     100.0 %     0.62 %     100.0 %     0.61 %
       
    As Of  
CAPITAL RATIOS   June 30, 2016       March 31, 2016       June 30, 2015    
 Tier 1 Leverage Ratio     11.85 %         11.67 %         11.64 %    
 Tier 1 Common Equity Risk-Based Capital Ratio     11.67 %         11.47 %         11.91 %    
 Tier 1 Risk-Based Capital Ratio     13.35 %         13.17 %         13.78 %    
 Total Risk-Based Capital Ratio     14.60 %         14.42 %         15.03 %    
 Total Shareholders' Equity   $   560,614         $   546,248         $   515,583      
 Book Value Per Common Share   $   7.11         $   6.93         $   6.57      
 Tangible Common Equity Per Common Share *   $   6.22         $   6.03         $   5.66      
 Tangible Common Equity to Tangible Assets *     10.18 %         10.23 %         9.83 %    
         * Excludes goodwill and other intangible assets

 
ALLOWANCE FOR LOAN LOSSES
(Dollars In Thousands) (Unaudited)    
    Quarter Ended
    June 30, 2016   March 31, 2016   December 31, 2015   September 30, 2015   June 30, 2015
                     
Balance at beginning of period   $   52,668     $   52,405     $   50,116     $   48,821     $   48,170  
Provision for losses on loans   -         500     -         500     -    
Recoveries on loans previously charged-off     993       361       3,694       2,670       1,210  
Gross loan charge-offs     (479 )     (598 )     (1,405 )     (1,875 )     (559 )
Balance at end of period   $   53,182     $   52,668     $   52,405     $   50,116     $   48,821  
                     
Net Loan Charge-offs / Average Net Loans     -0.01 %     0.01 %     -0.06 %     -0.02 %     -0.02 %
Charge-offs / Average Total Loans     0.01 %     0.02 %     0.04 %     0.05 %     0.02 %
Allowance for Loan Losses / Gross Loans*     1.38 %     1.38 %     1.37 %     1.38 %     1.38 %
Allowance for Loan Losses / Non-accrual Loans     267.87 %     208.99 %     241.56 %     184.38 %     158.24 %
Allowance for Loan Losses / Non-performing Loans     267.87 %     208.99 %     241.56 %     184.38 %     158.24 %
Allowance for Loan Losses / Non-performing Assets     173.24 %     149.08 %     169.74 %     130.23 %     130.50 %
Allowance for Loan Losses / Classified Loans     63.95 %     61.79 %     65.22 %     59.53 %     47.88 %
                     
* Excludes held-for-sale loans                    
                     
                     
NON-PERFORMING ASSETS
(Dollars In Thousands, Net of SBA Guaranty)   Quarter Ended
(Unaudited)   June 30, 2016   March 31, 2016   December 31, 2015   September 30, 2015   June 30, 2015
                     
Non-accrual loans   $   19,854     $   25,201     $   21,694     $   27,181     $   30,852  
Loans 90 days or more past due and still accruing   -       -       -       -         -    
Total Non-performing Loans     19,854       25,201       21,694       27,181       30,852  
                     
Total OREO     10,844       10,128       9,179       11,302       6,559  
Total Non-performing Assets   $   30,698     $   35,329     $   30,873     $   38,483     $   37,411  
                     
Total Non-performing Loans/Gross Loans     0.51 %     0.65 %     0.56 %     0.74 %     0.87 %
Total Non-performing Assets/Total Assets     0.63 %     0.75 %     0.65 %     0.81 %     0.81 %
                     
                     
                     
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS
(Dollars In Thousands ) (Unaudited)                    
    Quarter Ended        
    June 30, 2016   March 31, 2016   June 30, 2015        
                     
Balance at beginning of period   $   1,061     $   1,261     $   1,023          
Credit for losses on loan commitments   -         (200 )   -            
Balance at end of period   $   1,061     $   1,061     $   1,023          
                     
                     
    Six Months Ended            
    June 30, 2016   June 30, 2015            
                     
Balance at beginning of period   $   1,261     $   1,023              
Credit for losses on loan commitments     (200 )   -                
Balance at end of period   $   1,061     $   1,023              
                     

WILSHIRE BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(Dollars In Thousands) (Unaudited)
  For the Quarter Ended
  June 30, 2016   March 31, 2016   June 30, 2015
           
  Average Interest   Average   Average Interest   Average   Average Interest   Average
  Balance Income/   Yield/   Balance Income/   Yield/   Balance Income/   Yield/
INTEREST EARNING ASSETS   Expense   Rate     Expense   Rate     Expense   Rate
                             
LOANS:                            
  Real Estate Loans  $ 3,066,405   $ 35,262       4.60 %   $ 3,050,251   $ 35,025       4.59 %   $ 2,767,138   $ 33,410       4.83 %
  Commercial Loans   771,109     7,814       4.05 %     737,336     7,486       4.06 %     709,662     6,947       3.92 %
  Consumer Loans   9,929     59       2.38 %     12,522     86       2.75 %     14,413     124       3.44 %
    Total Gross Loans   3,847,443     43,135       4.49 %     3,800,109     42,597       4.48 %     3,491,213     40,481       4.64 %
  Deferred Fees and Costs \ Loan Fees   (10,224 )   1,138           (10,518 )   1,068           (10,032 )   1,118      
    Total Loans *   3,837,219     44,273       4.62 %     3,789,591     43,665       4.61 %     3,481,181     41,599       4.78 %
                             
INVESTMENT SECURITIES AND                            
OTHER INTEREST-EARNING ASSETS:                            
  Investment Securities**   502,367     2,328       1.98 %     529,552     2,460       1.97 %     339,876     1,929       2.47 %
  Deposits Held In Other Institutions -   -       0.00 %   -   -       0.00 %     7,986     32       1.60 %
  Federal Funds Sold & Others   118,236     149       0.50 %     98,313     124       0.50 %     368,254     232       0.25 %
    Total Investment Securities and                            
     Other Earning Assets   620,603     2,477       1.69 %     627,865     2,584       1.74 %     716,116     2,193       1.32 %
                             
TOTAL INTEREST-EARNING ASSETS $ 4,457,822   $ 46,750       4.21 %   $ 4,417,456   $ 46,249       4.20 %   $ 4,197,297   $ 43,792       4.19 %
                             
  Total Non-Interest Earning Assets   284,402             280,877             274,768        
TOTAL ASSETS $ 4,742,224           $ 4,698,333           $ 4,472,065        
                             
INTEREST BEARING LIABILITIES                            
                             
INTEREST-BEARING DEPOSITS:                            
  Money Market $   994,594   $   1,803       0.73 %   $ 1,008,081   $   1,787       0.71 %   $   891,494   $   1,464       0.66 %
  NOW   33,996     21       0.25 %     37,936     25       0.26 %     28,704     20       0.28 %
  Savings   135,302     520       1.54 %     134,064     511       1.53 %     129,805     494       1.52 %
  Time Deposits of $100,000 or More   1,358,446     3,207       0.94 %     1,342,858     3,044       0.91 %     1,417,860     3,061       0.86 %
  Other Time Deposits   255,867     609       0.95 %     246,197     565       0.92 %     276,973     622       0.90 %
    Total Interest Bearing Deposits   2,778,205     6,160       0.89 %     2,769,136     5,932       0.86 %     2,744,836     5,661       0.83 %
                             
BORROWINGS:                            
  FHLB Advances and Other Borrowings   200,000     907       1.81 %     201,209     905       1.80 %     112,088     220       0.79 %
  Junior Subordinated Debentures   72,099     516       2.86 %     72,037     503       2.79 %     71,858     438       2.44 %
    Total Borrowings   272,099     1,423       2.09 %     273,246     1,408       2.06 %     183,946     658       1.43 %
                             
TOTAL INTEREST BEARING LIABILITIES $ 3,050,304   $   7,583       0.99 %   $ 3,042,382   $   7,340       0.97 %   $ 2,928,782   $   6,319       0.86 %
                             
  Non-Interest Bearing Deposits   1,088,786             1,064,702             991,167        
  Other Liabilities   47,783             46,722             38,778        
  Shareholders' Equity   555,351             544,527             513,338        
TOTAL LIABILITIES AND EQUITY $ 4,742,224           $ 4,698,333           $ 4,472,065        
                             
NET INTEREST INCOME   $ 39,167           $ 38,909           $ 37,473      
.                            
NET INTEREST SPREAD         3.22 %           3.24 %           3.33 %
                             
NET INTEREST MARGIN         3.53 %           3.54 %           3.59 %
                             
* 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 Six Months Ended
  June 30, 2016   June 30, 2015
       
  Average Interest   Average   Average Interest   Average
  Balance Income/   Yield/   Balance Income/   Yield/
INTEREST EARNING ASSETS   Expense   Rate     Expense   Rate
                   
LOANS:                  
  Real Estate Loans $ 3,058,328   $   70,287       4.60 %   $ 2,749,883   $   65,976       4.80 %
  Commercial Loans   754,223     15,300       4.06 %     663,512     13,229       3.99 %
  Consumer Loans   11,225     146       2.60 %     13,780     239       3.47 %
    Total Gross Loans   3,823,776     85,733       4.48 %     3,427,175     79,444       4.64 %
  Deferred Fees and Costs \ Loan Fees   (10,371 )   2,205           (10,012 )   2,243      
    Total Loans *   3,813,405     87,938       4.61 %     3,417,163     81,687       4.78 %
                   
INVESTMENT SECURITIES AND                  
OTHER INTEREST-EARNING ASSETS:                  
  Investment Securities**   515,959     4,788       1.98 %     349,536     3,897       2.42 %
  Deposits Held In Other Institutions -   -       0.00 %     7,993     64       1.60 %
  Federal Funds Sold & Others   108,275     273       0.50 %     312,786     392       0.25 %
    Total Investment Securities and                  
     Other Earning Assets   624,234     5,061       1.72 %     670,315     4,353       1.40 %
                   
TOTAL INTEREST-EARNING ASSETS $ 4,437,639   $   92,999       4.21 %   $ 4,087,478   $   86,040       4.23 %
                   
  Total Non-Interest Earning Assets   282,640             276,965        
TOTAL ASSETS $ 4,720,279           $ 4,364,443        
                   
INTEREST BEARING LIABILITIES                  
                   
INTEREST-BEARING DEPOSITS:                  
  Money Market $ 1,001,338   $   3,590       0.72 %   $   868,165   $   2,871       0.66 %
  NOW   35,966     46       0.26 %     28,966     37       0.26 %
  Savings   134,683     1,031       1.53 %     129,523     996       1.54 %
  Time Deposits of $100,000 or More   1,350,652     6,251       0.93 %     1,358,242     5,664       0.83 %
  Other Time Deposits   251,032     1,174       0.94 %     271,331     1,190       0.88 %
    Total Interest Bearing Deposits   2,773,671     12,092       0.87 %     2,656,227     10,758       0.81 %
                   
BORROWINGS:                  
  FHLB Advances and Other Borrowings   200,604     1,811       1.81 %     131,265     452       0.69 %
  Junior Subordinated Debentures   72,068     1,020       2.83 %     71,828     866       2.41 %
    Total Borrowings   272,672     2,831       2.08 %     203,093     1,318       1.30 %
                   
TOTAL INTEREST BEARING LIABILITIES $ 3,046,343   $   14,923       0.98 %   $ 2,859,320   $   12,076       0.85 %
                   
  Non-Interest Bearing Deposits   1,076,744             957,594        
  Other Liabilities   47,253             40,775        
  Shareholders' Equity   549,939             506,754        
TOTAL LIABILITIES AND EQUITY $ 4,720,279           $ 4,364,443        
                   
NET INTEREST INCOME   $ 78,076           $   73,964      
.                  
NET INTEREST SPREAD         3.23 %           3.38 %
                   
NET INTEREST MARGIN         3.53 %           3.64 %
                   
* 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  
  June 30, 2016   March 31, 2016   June 30, 2015  
             
Total shareholders' equity $   560,614     $   546,248     $   515,583    
   Goodwill and other intangible assets, net   (70,273 )     (70,458 )     (71,141 )  
Tangible common equity $   490,341     $   475,790     $   444,442    
             
Total assets $ 4,886,785     $   4,720,401     $   4,591,097    
   Goodwill and other intangible assets, net   (70,273 )     (70,458 )     (71,141 )  
Tangible assets $ 4,816,512     $   4,649,943     $   4,519,956    
             
Common shares outstanding   78,891,607       78,845,873       78,495,182    
             

EFFICIENCY RATIO BEFORE GAIN ON SALE OF OREO *  
(Dollars In Thousands, Except Share Data) (Unaudited)  
  Quarter Ended  
  June 30, 2016  
       
Net interest income $   39,167  
Non-interest income   9,693  
Total revenue $   48,860  
   
Non-interest expenses $   21,579  
Add back - gain on sale of OREO   3,742  
Non-interest expense before gain on sale of OREO $   25,321  
   
Efficiency ratio before gain on sale of OREO   51.8 %
(Total revenue / Non-interest expense before gain on sale of OREO)
 
 
* Tangible Common Equity, Tangible Assets, and Efficiency Ratio Before Gain on Sale of OREO 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
 

(concluded)
Alex Ko, EVP & CFO, (213) 427-6560www.wilshirebank.com