WIBC Wilshire Bancorp, Inc. (MM)

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 RECOVERIES	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) 427-6560
www.wilshirebank.com