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Actionable news in WIBC: Wilshire Bancorp, Inc.,

Wilshire Bancorp Reports Net Income Of $13.3 Million Or

The following excerpt is from the company's SEC filing.

$0.17 per Share for Third Quarter 2015

LOS ANGELES, October 19, 2015 - Wilshire Bancorp, Inc. (NASDAQ: WIBC) (the Company), the holding company for Wilshire Bank (the Bank), today reported net income of $13.3 million, or $0.17 per diluted common share, for the quarter ended September 30, 2015. This compares to net income of $15.1 million, or $0.19 per diluted common share, for the same period of the prior year, and net income of $15.6 million, or $0.20 per diluted common share, for the second quarter of 2015.

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, We had a very strong quarter of business development with more than $400 million in total loan production. We continue to make progress in building our commercial lending platform, which resulted in more than $100 million in C&I loan production in the third quarter, the highest quarterly production in our history. We are also seeing increasing production from our residential mortgage lending business, which originated over $100 million in loans during the third quarter. The progress we are making in building our C&I and residential mortgage lending businesses is helping us to achieve the more diversified loan portfolio that we are targeting.

We believe we are well positioned to generate earnings growth going forward. We have excellent liquidity with a loan-to-deposit ratio below our historical range. As we redeploy our excess liquidity into higher-yielding loans and securities, we expect to see an expansion in our net interest margin, which should help drive a higher level of revenue and earnings in future quarters, said Mr. Yoo.

Q3 2015 Summary

Net income totaled $13.3 million, or $0.17 per diluted common share, for the third quarter of 2015

Total net revenue of $47.0 million for the third quarter of 2015, an increase of 1.3% from the third quarter of 2014

Return on average assets of 1.16% and return on average equity of 10.12% for the third quarter of 2015

Net interest margin of 3.49% for the third quarter of 2015, a decrease from 3.59% for the second quarter of 2015

Loans receivable (net of deferred fees and costs) totaled $3.63 billion at September 30, 2015, an increase of 15% from $3.16 billion at September 30, 2014

Total deposits were $3.94 billion at September 30, 2015, an increase of 24% from $3.19 billion at September 30, 2014

Demand deposits totaled $1.07 billion at September 30, 2015, an increase of 17% from $914.7 million at September 30, 2014

Provision for losses on loans and loan commitments of $700,000 primarily related to loan growth and an increase in unfunded commitments

STATEMENT OF

OPERATIONS

Net interest income before provision for losses on loans and loan commitments totaled $37.5 million for the third quarter of 2015, an increase of 1.9% from $36.8 million for the third quarter of 2014, and unchanged from the second quarter of 2015. Relative to the third quarter of 2014, net interest income continues to be positively impacted by an increase in average total loans.

Net interest margin was 3.49% for the third quarter of 2015, compared to 3.59% for the second quarter of 2015, and 4.26% for the third quarter of 2014. The decline in net interest margin from the second to third quarter of 2015 was primarily attributable to the growth of demand deposits and money market accounts which resulted in an increase in cash and cash equivalents.

Loan yields were 4.76% for the third quarter of 2015, compared to 4.78% for the second quarter of 2015, and 5.12% for the third quarter of 2014.

The total cost of deposits was 0.62% for the third quarter of 2015, compared to 0.61% for the second quarter of 2015, and 0.53% for the third quarter of 2014. Compared to the second quarter of 2015, the increase in the cost of deposits for the third quarter of 2015 was primarily due to an increase in rates paid on time deposit accounts.

Non-Interest Income

Total non-interest income was $9.5 million for the third quarter of 2015, compared to $11.3 million for the second quarter of 2015, and $9.6 million for the third quarter of 2014.

The Company recognized $3.2 million in net gain on sales of loans during the third quarter of 2015, compared to $4.2 million for the second quarter of 2015, and $2.4 million for the third quarter of 2014. The decline in net gain on sale of loans for the third quarter of 2015, compared to the previous quarter, was primarily due to a decline in gains from the sale of non-performing loans. Net gain on sale of loans in the third quarter of 2015 consisted of $2.0 million in gains on sales of SBA loans and $1.2 million in gains on sales of residential mortgage loans.

Other non-interest income totaled $3.3 million for the third quarter of 2015, compared to $4.0 million for the second quarter of 2015, and $3.9 million for the third quarter of 2014. The decrease in other non-interest income from the second to third quarter of 2015 was primarily due to a decline in FHLB dividend income.

Non-Interest Expense

Total non-interest expense was $25.8 million for the third quarter of 2015, compared with $24.7 million for the second quarter of 2015, and $23.2 million for the third quarter of 2014. The increase in non-interest expense from the prior quarter was primarily due to an increase in other non-interest expenses that resulted largely from a reduction in net gain on sale of OREO during the third quarter of 2015.

Total salaries and employee benefits expense was $13.6 million for the third quarter of 2015, compared with $14.2 million for the second quarter of 2015, and $12.3 million for the third quarter of 2014. The decrease in salaries and employee benefits for the third quarter of 2015 compared to the second quarter of 2015 was largely due to a decline in stock compensation expenses which were higher during the second quarter of 2015 due to stock awards that were issued during second quarter.

The Companys operating efficiency ratio was 54.80% for the third quarter of 2015, compared with 50.56% for the second quarter of 2015, and 50.12% for the third quarter of 2014.

BALANCE SHEET

Total loans receivable (net of deferred fees and costs) were $3.63 billion at September 30, 2015, compared to $3.52 billion at June 30, 2015. The increase in loans during the third quarter of 2015 was spread across all of the Companys major portfolios aside from consumer loans.

The following table shows total loans receivable, loans held-for-sale, and total loans by loan type:

(Dollars In Thousands) (Unaudited)

Quarter Ended

September 30, 2015

June 30, 2015

March 31, 2015

December 31, 2014

September 30, 2014

Construction

18,146

16,050

26,117

21,248

40,062

Real Estate Secured

2,810,420

2,723,458

2,701,800

2,655,251

2,593,242

Commercial & Industrial

789,422

765,655

769,438

610,762

515,831

Consumer

13,284

14,622

15,465

21,036

12,810

Total Loans Receivable *

3,631,272

3,519,785

3,512,820

3,308,297

3,161,945

Loans Held-For-Sale

13,316

25,269

10,204

11,783

16,236

Total Loans *

3,644,588

3,545,054

3,523,024

3,320,080

3,178,181

* 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:

Real Estate Secured

176,605

121,066

138,145

184,477

191,272

Commercial & Industrial

107,952

46,438

59,837

73,194

89,166

21,871

25,648

31,718

34,747

41,373

Residential Mortgage

102,383

89,652

11,357

20,791

Warehouse Lines of Credit*

10,000

155,000

23,000

50,000

Total Loan Originations

416,171

292,928

397,697

327,435

399,162

* Warehouse lines of credit are reported as commercial...


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