Wilshire Bancorp, Inc (WIBC)

[Enterprising Investor]

Wilshire Bancorp Reports Net Income of $11.5 Million or $0.16 Earnings Per Share for Second Quarter 2013 (7/22/13)

LOS ANGELES, July 22, 2013 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq:WIBC) (the "Company"), the holding company for Wilshire State Bank (the "Bank"), today reported net income available to common shareholders of $11.5 million, or $0.16 per diluted common share, for the quarter ended June 30, 2013. This compares to net income available to common shareholders of $22.1 million, or $0.31 per common share, for the same period of the prior year, and net income of $11.6 million, or $0.16 per common share, for the first quarter of 2013.

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "We delivered another strong performance in the second quarter that reflects the consistent earnings power of the Company. We generated an annualized return on assets of 1.67% and an annualized return on equity of 13.0%. In addition, pre-tax, pre-provision income for the second quarter of 2013 was $17.0 million, a 38% increase from $12.4 million for the second quarter of 2012. We saw a continuation of most of the trends we have experienced over the past several quarters, most notably low credit costs, slight compression in our net interest margin, stable expense levels and modest loan growth.

"As we indicated at the beginning of 2013, one of our top priorities was to be more active in our deployment of excess capital to create additional value for our shareholders. Our actions in the second quarter of 2013 reflect our efforts to achieve this goal. We returned cash to shareholders through the implementation of a stock repurchase program and also reinstated our quarterly cash dividend. In addition, we announced two acquisitions - BankAsiana in the New York/New Jersey market and Saehan Bancorp in the Los Angeles market - that will expand our franchise and increase our earnings power in the years ahead. Following these actions, we expect to continue to be well capitalized and have the flexibility to continue returning capital to shareholders and reinvesting in our business," said Mr. Yoo.

Q2 2013 Summary

•Net income available to common shareholders totaled $11.5 million or $0.16 per diluted common share

•Total revenue of $34.1 million, an increase of 4.0% from the second quarter of 2012

•Return on average assets of 1.67%; return on average equity of 12.95%

•Operating efficiency ratio of 50.1% for Q2 2013 compared to 50.5% for Q1 2013

•Loans receivable totaled $2.09 billion at June 30, 2013, an increase of 2.1% from $2.05 billion at March 31, 2013

•Continued improvement in credit quality resulted in no provision for losses on loans and loan commitments for Q2 2013

•Declared cash dividend of $0.03 per common share

•Repurchased 651,412 shares of common stock as part of the Company's stock repurchase program

•Announced acquisitions of BankAsiana in New Jersey and Saehan Bancorp in Los Angeles

STATEMENT OF OPERATIONS

Pre-Tax, Pre-Provision Income

Pre-tax, pre-provision income (PTPP) was $17.0 million for the second quarter of 2013, compared with $12.4 million in the second quarter of 2012, and $17.0 million in the first quarter of 2013. PTPP 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 of PTPP to net income.

Net Interest Income and Margin

Net interest income before credit for losses on loans and loan commitments totaled $25.8 million for the second quarter of 2013, an increase of 6.2% from $24.2 million for the second quarter of 2012, and increased from $25.6 million in the first quarter of 2013. The increase from the prior periods was primarily due to a reduction in interest expense on deposits.

Net interest margin was 4.06% for the second quarter of 2013, compared to 4.13% in the second quarter of 2012, and 4.09% for the first quarter of 2013. The decrease in net interest margin from the first quarter of 2013 was primarily due to lower yields on newly originated loans, partially offset by a reduction in the cost of deposits.

Loan yields decreased to 5.10% for the second quarter of 2013 from 5.21% for the first quarter of 2013 due to new loans that were originated at rates that were lower than that of the existing portfolio, as a result of the low interest rate environment and competitive landscape within the banking industry. The total cost of deposits declined to 0.51% for the second quarter of 2013, down from 0.53% for the first quarter of 2013. The reduction in the total cost of deposits is primarily attributable to an increase in non-interest bearing deposits as a percentage of total deposits.

Non-Interest Income

Total non-interest income was $8.3 million for the second quarter of 2013, compared to $8.5 million for the second quarter of 2012, and $8.7 million for the first quarter of 2013. The decrease from the prior quarter was primarily due to lower net gain on sales of loans during the second quarter of 2013.

The $3.1 million in net gains on sales of loans recognized in the second quarter of 2013 was substantially all gains from the sale of SBA loans. During the second quarter of 2013, the Company sold $30.6 million in SBA loans, an increase from $30.3 million during the first quarter of 2013.

Non-Interest Expense

Total non-interest expense was $17.1 million for the second quarter of 2013, compared with $20.4 million for the second quarter of 2012, and $17.3 million for the first quarter of 2013.

Total salaries and employee benefits expense was $9.5 million for the second quarter of 2013, compared with $9.0 million for the second quarter of 2012, and $8.8 million for the first quarter of 2013. The increase from the prior quarter was due to an increase in accrual for bonuses and company-wide salary increases that took effect in the second quarter of 2013.

Other non-interest expense for the second quarter of 2013 totaled $4.9 million, compared with $6.7 million in the second quarter of 2012, and $5.8 million for the first quarter of 2013. The decrease from the second quarter of 2012 was primarily attributable to a decline in legal fees and regulatory assessment fees. The decrease from the first quarter of 2013 was primarily attributable to a reduction in professional fees and expenses related to the Company's bank owned life insurance plan.

The Company's operating efficiency ratio was 50.1% for the second quarter of 2013, compared with 62.2% for the second quarter of 2012 and 50.5% for the first quarter of 2013.

Tax Provision

For the second quarter of 2013, the Company recorded a provision for income taxes totaling $5.5 million, reflecting an effective tax rate of 32.1%. The effective tax rate is lower than historical rates primarily due to the generation of tax credits associated with the Company's investment in affordable housing programs.

BALANCE SHEET

Total gross loans receivable, were $2.10 billion at June 30, 2013, compared to $2.06 billion at March 31, 2013. The increase in total gross loans receivable during the second quarter of 2013 was primarily due to a $23.4 million increase in the commercial and industrial portfolio and a $19.6 million increase in the real estate secured portfolio. Total cash and due from banks increased $75.7 million during the second quarter of 2013 to $162.6 million due to a large temporary increase of a customer's business demand deposit account balance, a reduction in warehouse lending, and pay-down of investment securities. During the second quarter of 2013, the Company committed to fund two additional low income tax credit investments totaling $8.0 million.

Read more: http://www.nasdaq.com/press-release/wilshire-bancorp-reports-net-income-of-115-million-or-016-earnings-per-share-for-second-quarter-2013-20130722-00949#ixzz2ZpwDKSMa