Wilshire Bancorp Announces Adjustments to the Financial Results Reported for the Second Quarter of 2011
August 15 2011 - 8:00AM
Wilshire Bancorp, Inc. (Nasdaq:WIBC), the holding company for
Wilshire State Bank, announced today that it will report net income
available to common shareholders of $2.1 million, or $0.04 per
basic and diluted share, for the quarter ended June 30, 2011 in the
Company's Quarterly Report on Form 10-Q that will be filed with the
Securities and Exchange Commission today, August 15, 2011.
These results differ from the preliminary results that were
reported in the Company's earnings release for the second quarter
of 2011 that was issued on July 26, 2011. On a preliminary basis,
the Company had reported a $4.6 million net loss available to
common shareholders, or ($0.09) per basic and diluted share, for
the second quarter of 2011.
Wilshire Bancorp previously determined that it was probable that
the goodwill related to the acquisition of the Company's East Coast
branches had been impaired on a preliminary basis. As such, the
Company recorded a preliminary non-cash goodwill impairment charge
in the amount of $6.7 million, which represented a write-down of
all of the goodwill carried on the balance sheet, as was presented
in the Company's preliminary earnings release for the second
quarter of 2011. Upon further evaluation and analysis, management
concluded that there was no impairment of goodwill and that the
fair value of the East Coast branches exceeded its carrying value
as of June 30, 2011. The determination was based on the Company's
goodwill impairment analysis, which was performed in accordance
with ASC 350-20. The financial results reported in the Quarterly
Report on Form 10-Q to be filed today reflects no goodwill
impairment charge on the Company's Statement of Operations and
goodwill of $6.7 million continues to remain on the Company's
Consolidated Balance Sheet.
"We are pleased to have returned to profitable operations in the
second quarter," said Jae Whan (J.W.) Yoo, President and CEO of
Wilshire Bancorp. "We believe we are clearly heading in the right
direction and we can steadily increase our profitability in the
foreseeable future."
The revised Statement of Operations for the three and six months
ended June 30, 2011 and the revised Balance Sheet as of June 30,
2011 are included at the end of this release. For more information
regarding the adjustment to the Company's financial results
reported for the second quarter of 2011, please refer to the
Company's Quarterly Report on Form 10-Q on the Securities and
Exchange Commission's website at www.sec.gov or on the Investor
Relations section of the Company's website
www.wilshirebank.com.
COMPANY INFORMATION
Headquartered in Los Angeles, Wilshire State Bank operates 24
branch offices in California, Texas, New Jersey and New York, and
six loan production offices in Dallas, Houston, Atlanta, Denver,
Annandale, Virginia, and Fort Lee, New Jersey, and is an SBA
preferred lender nationwide. Wilshire State Bank is a community
bank with a focus on commercial real estate lending and general
commercial banking, with its primary market encompassing the
multi-ethnic populations of the Los Angeles Metropolitan area.
Wilshire Bancorp's strategic goals include increasing shareholder
and franchise value by continuing to grow its multi-ethnic banking
business and expanding its geographic reach to other similar
markets with strong levels of small business activity.
www.wilshirebank.com
FORWARD-LOOKING STATEMENTS
Statements concerning future performance, events, or any other
guidance on future periods constitute forward-looking statements
that are subject to a number of risks and uncertainties that might
cause actual results to differ materially from stated expectations.
Specific factors include, but are not limited to, loan production
and sales, credit quality, the ability to expand net interest
margin, the ability to continue to attract low-cost deposits,
success of expansion efforts, competition in the marketplace and
general economic conditions. Any financial information contained in
this release should be read in conjunction with the consolidated
financial statements and notes included in Wilshire Bancorp's most
recent reports on Form 10-K and Form 10-Q, as filed with the
Securities and Exchange Commission, as they may be amended from
time to time. Results of operations for the most recent quarter are
not necessarily indicative of operating results for any future
periods. Any projections in this release are based on limited
information currently available to management and are subject to
change. Since management will only provide guidance at certain
points during the year, Wilshire Bancorp will not necessarily
update the information. Such information speaks only as of the date
of this release. Additional information on these and other factors
that could affect financial results are included in filings by
Wilshire Bancorp with the Securities and Exchange Commission.
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CONSOLIDATED BALANCE
SHEET |
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(dollars in thousands) (unaudited) |
June 30, |
March 31, |
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June 30, |
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2011 |
2011 |
% Change |
2010 |
% Change |
ASSETS: |
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Cash and Due from Banks |
$ 97,499 |
$ 68,827 |
42% |
$ 134,707 |
-28% |
Federal Funds Sold and Other Cash
Equivalents |
115,005 |
5 |
2300000% |
224,005 |
-49% |
Total Cash and Cash
Equivalents |
212,504 |
68,832 |
209% |
358,712 |
-41% |
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Investment Securities Available For Sale |
307,309 |
340,812 |
-10% |
506,381 |
-39% |
Investment Securities Held To Maturity |
74 |
80 |
-8% |
96 |
-23% |
Total Investment
Securities |
307,383 |
340,892 |
-10% |
506,477 |
-39% |
Loans: |
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Loans Held For Sale |
66,429 |
136,769 |
-51% |
16,965 |
292% |
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Real Estate
Construction |
57,637 |
73,879 |
-22% |
57,379 |
0% |
Residential Real
Estate |
90,715 |
91,842 |
-1% |
106,057 |
-14% |
Commercial Real
Estate |
1,558,067 |
1,656,495 |
-6% |
1,885,897 |
-17% |
Commercial and
Industrial |
294,438 |
310,225 |
-5% |
370,323 |
-20% |
Consumer |
15,430 |
14,675 |
5% |
18,401 |
-16% |
Total Loans |
2,016,287 |
2,147,116 |
-6% |
2,438,057 |
-17% |
Allowance For Loan Losses |
(110,995) |
(114,842) |
-3% |
(91,419) |
21% |
Loans, Net of Allowance for Loan
Losses |
1,905,292 |
2,032,274 |
-6% |
2,346,638 |
-19% |
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Accrued Interest Receivable |
8,082 |
9,829 |
-18% |
13,427 |
-40% |
Due from Customers on Acceptances |
509 |
169 |
201% |
611 |
-17% |
Other Real Estate Owned |
8,499 |
8,512 |
0% |
6,540 |
30% |
Premises and Equipment |
13,243 |
13,555 |
-2% |
13,741 |
-4% |
Federal Home Loan Bank (FHLB) Stock, at
Cost |
17,033 |
17,796 |
-4% |
20,075 |
-15% |
Cash Surrender Value of Life Insurance |
19,582 |
18,812 |
4% |
18,354 |
7% |
Investment in affordable housing
partnerships |
33,697 |
34,781 |
-3% |
29,665 |
14% |
Deferred Income Taxes |
19,112 |
19,112 |
0% |
28,199 |
-32% |
Servicing Assets |
8,561 |
7,664 |
12% |
6,655 |
29% |
Goodwill |
6,675 |
6,675 |
0% |
6,675 |
0% |
FDIC Indemnification |
21,912 |
26,673 |
-18% |
28,538 |
-23% |
Other Assets |
32,739 |
46,756 |
-30% |
35,822 |
-9% |
TOTAL ASSETS |
$ 2,681,252 |
$ 2,789,101 |
-4% |
$ 3,437,094 |
-22% |
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LIABILITIES AND STOCKHOLDERS'
EQUITY: |
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LIABILITIES: |
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Non-interest Bearing Demand Deposits |
$ 449,270 |
$ 484,402 |
-7% |
$ 427,793 |
5% |
Savings and Interest Checking |
110,097 |
109,399 |
1% |
100,210 |
10% |
Money Market Deposits |
587,442 |
622,078 |
-6% |
908,112 |
-35% |
Time Deposits in denomination of $100,000 or
more |
646,238 |
670,686 |
-4% |
752,656 |
-14% |
Other Time Deposits |
360,825 |
383,462 |
-6% |
712,698 |
-49% |
Total Deposits |
2,153,872 |
2,270,027 |
-5% |
2,901,469 |
-26% |
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FHLB Borrowings and Federal Funds
Purchased |
110,000 |
215,000 |
-49% |
145,306 |
-24% |
Acceptance Outstanding |
509 |
169 |
201% |
611 |
-17% |
Junior Subordinated Debentures |
87,321 |
87,321 |
0% |
87,321 |
0% |
Accrued Interest Payable |
3,651 |
4,049 |
-10% |
5,461 |
-33% |
Other Liabilities |
35,730 |
34,783 |
3% |
29,491 |
21% |
Total Liabilities |
2,391,083 |
2,611,349 |
-8% |
3,169,659 |
-25% |
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STOCKHOLDERS' EQUITY: |
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Preferred Stock |
60,721 |
60,584 |
0% |
60,186 |
1% |
Common Stock |
164,585 |
55,655 |
196% |
55,370 |
197% |
Retained Earnings |
61,106 |
58,994 |
4% |
147,325 |
-59% |
Accumulated Other Comprehensive Income |
3,757 |
2,519 |
49% |
4,554 |
-18% |
Total Stockholders'
Equity |
290,169 |
177,752 |
63% |
267,435 |
9% |
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY |
$ 2,681,252 |
$ 2,789,101 |
-4% |
$ 3,437,094 |
-22% |
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CONSOLIDATED STATEMENT OF
OPERATIONS |
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(dollars in thousands, except per share data)
(unaudited) |
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Quarter Ended |
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Quarter Ended |
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June 30, 2011 |
March 31, 2011 |
% Change |
June 30, 2010 |
% Change |
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INTEREST INCOME |
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Interest and Fees on Loans |
$ 30,767 |
$ 33,462 |
-8% |
$ 36,079 |
-15% |
Interest on Investment
Securities |
2,156 |
1,983 |
9% |
4,756 |
-55% |
Interest on Federal Funds
Sold |
74 |
179 |
-59% |
294 |
-75% |
Total Interest Income |
32,997 |
35,624 |
-7% |
41,129 |
-20% |
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INTEREST EXPENSE |
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Deposits |
4,663 |
5,110 |
-9% |
10,476 |
-55% |
FHLB Advances and Other
Borrowings |
999 |
1,219 |
-18% |
1,414 |
-29% |
Total Interest Expense |
5,662 |
6,329 |
-11% |
11,890 |
-52% |
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Net Interest Income Before
Provision for Losses on Loans and Loan Commitments |
27,335 |
29,295 |
-7% |
29,239 |
-7% |
Provision for Losses on Loans
and Loan Commitments |
10,300 |
44,800 |
-77% |
32,200 |
-68% |
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Net Interest Income (Loss)
After Provision for Losses on Loans and Loan Commitments |
17,035 |
(15,505) |
-210% |
(2,961) |
-675% |
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NONINTEREST INCOME |
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Service Charges on
Deposits |
3,149 |
3,080 |
2% |
3,215 |
-2% |
(Loss) Gain on Sales of Loans,
Net |
(1,282) |
3,592 |
-136% |
1,444 |
-189% |
Loans Held For Sale
Valuation |
(2,324) |
-- |
0% |
-- |
0% |
Gain on Sale of Investment
Securities |
6 |
36 |
-83% |
3,658 |
-100% |
Other |
2,179 |
1,968 |
11% |
1,561 |
40% |
Total Noninterest
Income |
1,728 |
8,676 |
-80% |
9,878 |
-83% |
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NONINTEREST EXPENSES |
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Salaries and Employee
Benefits |
6,753 |
7,817 |
-14% |
7,284 |
-7% |
Goodwill Impairment |
-- |
-- |
0% |
-- |
0% |
Occupancy & Equipment |
2,053 |
1,980 |
4% |
1,946 |
5% |
Data Processing |
773 |
712 |
9% |
690 |
12% |
Other |
7,035 |
6,967 |
1% |
6,212 |
13% |
Total Noninterest
Expenses |
16,614 |
17,476 |
-5% |
16,132 |
3% |
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Income (Loss) Before Income
Taxes |
2,149 |
(24,305) |
-109% |
(9,215) |
-123% |
Income Taxes (Benefit)
Provision |
(877) |
26,888 |
-103% |
(5,551) |
-84% |
NET INCOME (LOSS) |
$ 3,026 |
$ (51,193) |
-106% |
$ (3,664) |
-183% |
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Preferred Stock Cash Dividend
and Accretion of |
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Preferred Stock Discount |
913 |
912 |
0% |
906 |
1% |
NET INCOME (LOSS) AVAILABLE TO COMMON
SHAREHOLDERS |
$ 2,113 |
$ (52,105) |
-104% |
$ (4,570) |
-146% |
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PER COMMON SHARE
INFORMATION |
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Basic Earnings (Loss) Per
Common Share |
$ 0.04 |
$ (1.77) |
-102% |
$ (0.15) |
-127% |
Diluted Earnings (Loss)
Per Common Share |
$ 0.04 |
$ (1.77) |
-102% |
$ (0.15) |
-127% |
WEIGHTED-AVERAGE COMMON SHARES
OUTSTANDING: |
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Basic |
50,151,459 |
29,476,288 |
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29,487,994 |
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Diluted |
50,165,970 |
29,476,288 |
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29,487,994 |
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CONSOLIDATED STATEMENT OF
OPERATIONS |
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(dollars in thousands, except per share data)
(unaudited) |
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Six Months
Ended |
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June 30, 2011 |
June 30, 2010 |
% Change |
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INTEREST INCOME |
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Interest and Fees on Loans |
$ 64,229 |
$ 71,383 |
-10% |
Interest on Investment
Securities |
4,139 |
10,371 |
-60% |
Interest on Federal Funds
Sold |
253 |
676 |
-63% |
Total Interest Income |
68,621 |
82,430 |
-17% |
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INTEREST EXPENSE |
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Deposits |
9,773 |
21,650 |
-55% |
FHLB Advances and Other
Borrowings |
2,217 |
2,983 |
-26% |
Total Interest Expense |
11,990 |
24,633 |
-51% |
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Net Interest Income Before
Provision for Losses on Loans and Loan Commitments |
56,631 |
57,797 |
-2% |
Provision for Losses on Loans
and Loan Commitments |
55,100 |
49,200 |
12% |
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Net Interest Income After
Provision for Losses on Loans and Loan Commitments |
1,531 |
8,597 |
-82% |
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NONINTEREST INCOME |
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Service Charges on
Deposits |
6,229 |
6,439 |
-3% |
Gain on Sales of Loans |
2,310 |
1,480 |
56% |
Loans Held For Sale
Valuation |
(2,324) |
-- |
0% |
Gain on Sale of Investment
Securities |
42 |
6,142 |
-99% |
Other |
4,134 |
3,602 |
15% |
Total Noninterest
Income |
10,391 |
17,663 |
-41% |
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NONINTEREST EXPENSES |
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|
Salaries and Employee
Benefits |
14,569 |
14,399 |
1% |
Goodwill Impairment |
-- |
-- |
0% |
Occupancy & Equipment |
4,033 |
4,127 |
-2% |
Data Processing |
1,485 |
1,327 |
12% |
Other |
13,992 |
10,969 |
28% |
Total Noninterest
Expenses |
34,079 |
30,822 |
11% |
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Loss Before Income Taxes |
(22,157) |
(4,562) |
386% |
Income Taxes Provision
(Benefit) |
26,010 |
(4,213) |
-717% |
NET (LOSS) INCOME |
$ (48,167) |
$ (349) |
13701% |
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Preferred Stock Cash Dividend
and Accretion of |
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Preferred Stock Discount |
1,826 |
1,809 |
1% |
NET LOSS AVAILABLE TO COMMON
SHAREHOLDERS |
$ (49,993) |
$ (2,158) |
2217% |
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PER COMMON SHARE
INFORMATION |
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Basic Loss Per Common
Share |
$ (1.25) |
$ (0.07) |
1686% |
Diluted Loss Per Common
Share |
$ (1.25) |
$ (0.07) |
1686% |
WEIGHTED-AVERAGE COMMON SHARES
OUTSTANDING: |
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Basic |
39,870,987 |
29,486,011 |
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Diluted |
39,870,987 |
29,486,011 |
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CONTACT: Alex Ko, EVP & CFO
(213) 427-6560
www.wilshirebank.com
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