Attached files
| file | filename |
|---|---|
| 8-K - 8-K - WILSHIRE BANCORP INC | a11-24483_18k.htm |
Exhibit 99.1
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WILSHIRE BANCORP, INC. |
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CONTACT: |
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Alex Ko, EVP & CFO, (213) 427-6560 |
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www.wilshirebank.com |
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Wilshire Bancorp Announces Adjustments to the
Financial Results Reported for the Second Quarter of 2011
Company reports net income available to common shareholders of
$2.1 million, or $0.04 per diluted share, for the second quarter of 2011
LOS ANGELES (August 15, 2011) – 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 our 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.
###
|
CONSOLIDATED BALANCE SHEET |
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(dollars in thousands) (unaudited) |
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June 30, |
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March 31, |
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June 30, |
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2011 |
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2011 |
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% Change |
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2010 |
|
% Change |
| |||
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ASSETS: |
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|
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Cash and Due from Banks |
|
$ |
97,499 |
|
$ |
68,827 |
|
42% |
|
$ |
134,707 |
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-28% |
|
|
Federal Funds Sold and Other Cash Equivalents |
|
115,005 |
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5 |
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2300000% |
|
224,005 |
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-49% |
| |||
|
Total Cash and Cash Equivalents |
|
212,504 |
|
68,832 |
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209% |
|
358,712 |
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-41% |
| |||
|
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|
|
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Investment Securities Available For Sale |
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307,309 |
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340,812 |
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-10% |
|
506,381 |
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-39% |
| |||
|
Investment Securities Held To Maturity |
|
74 |
|
80 |
|
-8% |
|
96 |
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-23% |
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Total Investment Securities |
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307,383 |
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340,892 |
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-10% |
|
506,477 |
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-39% |
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Loans: |
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Loans Held For Sale |
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66,429 |
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136,769 |
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-51% |
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16,965 |
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292% |
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Real Estate Construction |
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57,637 |
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73,879 |
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-22% |
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57,379 |
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0% |
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Residential Real Estate |
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90,715 |
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91,842 |
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-1% |
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106,057 |
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-14% |
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Commercial Real Estate |
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1,558,067 |
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1,656,495 |
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-6% |
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1,885,897 |
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-17% |
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Commercial and Industrial |
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294,438 |
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310,225 |
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-5% |
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370,323 |
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-20% |
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Consumer |
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15,430 |
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14,675 |
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5% |
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18,401 |
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-16% |
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Total Loans |
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2,016,287 |
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2,147,116 |
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-6% |
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2,438,057 |
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-17% |
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Allowance For Loan Losses |
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(110,995) |
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(114,842) |
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-3% |
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(91,419) |
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21% |
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Loans, Net of Allowance for Loan Losses |
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1,905,292 |
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2,032,274 |
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-6% |
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2,346,638 |
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-19% |
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|
|
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Accrued Interest Receivable |
|
8,082 |
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9,829 |
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-18% |
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13,427 |
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-40% |
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Due from Customers on Acceptances |
|
509 |
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169 |
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201% |
|
611 |
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-17% |
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Other Real Estate Owned |
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8,499 |
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8,512 |
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0% |
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6,540 |
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30% |
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Premises and Equipment |
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13,243 |
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13,555 |
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-2% |
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13,741 |
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-4% |
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Federal Home Loan Bank (FHLB) Stock, at Cost |
|
17,033 |
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17,796 |
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-4% |
|
20,075 |
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-15% |
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Cash Surrender Value of Life Insurance |
|
19,582 |
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18,812 |
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4% |
|
18,354 |
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7% |
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Investment in affordable housing partnerships |
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33,697 |
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34,781 |
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-3% |
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29,665 |
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14% |
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Deferred Income Taxes |
|
19,112 |
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19,112 |
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0% |
|
28,199 |
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-32% |
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Servicing Assets |
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8,561 |
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7,664 |
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12% |
|
6,655 |
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29% |
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Goodwill |
|
6,675 |
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6,675 |
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0% |
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6,675 |
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0% |
| |||
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FDIC Indemnification |
|
21,912 |
|
26,673 |
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-18% |
|
28,538 |
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-23% |
| |||
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Other Assets |
|
32,739 |
|
46,756 |
|
-30% |
|
35,822 |
|
-9% |
| |||
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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 |
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$ |
484,402 |
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-7% |
|
$ |
427,793 |
|
5% |
|
|
Savings and Interest Checking |
|
110,097 |
|
109,399 |
|
1% |
|
100,210 |
|
10% |
| |||
|
Money Market Deposits |
|
587,442 |
|
622,078 |
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-6% |
|
908,112 |
|
-35% |
| |||
|
Time Deposits in denomination of $100,000 or more |
|
646,238 |
|
670,686 |
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-4% |
|
752,656 |
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-14% |
| |||
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Other Time Deposits |
|
360,825 |
|
383,462 |
|
-6% |
|
712,698 |
|
-49% |
| |||
|
Total Deposits |
|
2,153,872 |
|
2,270,027 |
|
-5% |
|
2,901,469 |
|
-26% |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
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: |
|
|
|
|
|
|
|
|
|
|
| |||
|
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% |
|
(continued)
|
CONSOLIDATED STATEMENT OF OPERATIONS |
| |||||||||||||
|
(dollars in thousands, except per share data) (unaudited) |
| |||||||||||||
|
|
|
Quarter Ended |
|
|
|
Quarter Ended |
|
|
| |||||
|
|
|
June 30, 2011 |
|
March 31, 2011 |
|
% Change |
|
June 30, 2010 |
|
% Change |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
| |||
|
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% |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
| |||
|
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% |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
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% |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Net Interest Income (Loss) After Provision for Losses on Loans and Loan Commitments |
|
17,035 |
|
(15,505) |
|
-210% |
|
(2,961) |
|
-675% |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
| |||
|
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% |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
NONINTEREST EXPENSES |
|
|
|
|
|
|
|
|
|
|
| |||
|
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% |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
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% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Preferred Stock Cash Dividend and Accretion of Preferred Stock Discount |
|
913 |
|
912 |
|
0% |
|
906 |
|
1% |
| |||
|
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS |
|
$ |
2,113 |
|
$ |
(52,105) |
|
-104% |
|
$ |
(4,570) |
|
-146% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
PER COMMON SHARE INFORMATION |
|
|
|
|
|
|
|
|
|
|
| |||
|
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: |
|
|
|
|
|
|
|
|
|
|
| |||
|
Basic |
|
50,151,459 |
|
29,476,288 |
|
|
|
29,487,994 |
|
|
| |||
|
Diluted |
|
50,165,970 |
|
29,476,288 |
|
|
|
29,487,994 |
|
|
| |||
(continued)
|
CONSOLIDATED STATEMENT OF OPERATIONS |
|
|
|
|
|
|
| ||
|
(dollars in thousands, except per share data) (unaudited) |
|
|
|
|
|
|
| ||
|
|
|
Six Months Ended |
|
|
| ||||
|
|
|
June 30, 2011 |
|
June 30, 2010 |
|
% Change |
| ||
|
|
|
|
|
|
|
|
| ||
|
INTEREST INCOME |
|
|
|
|
|
|
| ||
|
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% |
| ||
|
|
|
|
|
|
|
|
| ||
|
INTEREST EXPENSE |
|
|
|
|
|
|
| ||
|
Deposits |
|
9,773 |
|
21,650 |
|
-55% |
| ||
|
FHLB Advances and Other Borrowings |
|
2,217 |
|
2,983 |
|
-26% |
| ||
|
Total Interest Expense |
|
11,990 |
|
24,633 |
|
-51% |
| ||
|
|
|
|
|
|
|
|
| ||
|
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% |
| ||
|
|
|
|
|
|
|
|
| ||
|
Net Interest Income After Provision for Losses on Loans and Loan Commitments |
|
1,531 |
|
8,597 |
|
-82% |
| ||
|
|
|
|
|
|
|
|
| ||
|
NONINTEREST INCOME |
|
|
|
|
|
|
| ||
|
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% |
| ||
|
|
|
|
|
|
|
|
| ||
|
NONINTEREST EXPENSES |
|
|
|
|
|
|
| ||
|
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% |
| ||
|
|
|
|
|
|
|
|
| ||
|
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% |
|
|
|
|
|
|
|
|
|
| ||
|
Preferred Stock Cash Dividend and Accretion of Preferred Stock Discount |
|
1,826 |
|
1,809 |
|
1% |
| ||
|
NET LOSS AVAILABLE TO COMMON SHAREHOLDERS |
|
$ |
(49,993) |
|
$ |
(2,158) |
|
2217% |
|
|
|
|
|
|
|
|
|
| ||
|
PER COMMON SHARE INFORMATION |
|
|
|
|
|
|
| ||
|
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: |
|
|
|
|
|
|
| ||
|
Basic |
|
39,870,987 |
|
29,486,011 |
|
|
| ||
|
Diluted |
|
39,870,987 |
|
29,486,011 |
|
|
| ||
(concluded)