Wilshire Bancorp Reports Net Income of $11.3 Million or

LOS ANGELES, Oct. 21, 2013 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (Nasdaq: WIBC ) (the "Company"), the holding company for Wilshire Bank, formerly Wilshire State Bank (the "Bank"), today reported net income available to common shareholders of $11.3 million, or $0.16 per diluted common share, for the quarter ended September 30, 2013. This compares to net income available to common shareholders of $38.5 million, or $0.54 per common share, for the same period of the prior year, and net income available to common shareholders of $11.5 million, or $0.16 per common share, for the second quarter of 2013.

Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "We are pleased with our third quarter performance, which was driven by solid revenue growth, enhanced efficiencies and continued improvement in our credit quality. We saw a significant pick-up in our commercial real estate lending during the third quarter, which helped increase our loan portfolio by nearly 5% from the end of the prior quarter. We continue to enhance our ability to generate new customer relationships, most notably through the creation of a New Business Marketing Group led by our new Chief Marketing Officer, which will focus on increasing penetration in our primary markets.

"We are seeing strong improvement in our core earnings power, with our pre-tax, pre-provision income increasing 20% on a year-over-year basis. With the acquisition of BankAsiana, which closed earlier this month, and our pending acquisition of Saehan Bancorp, we believe we have additional catalysts in place that should enable us to continue improving our core earnings power in the years ahead and creating significant value for shareholders," said Mr. Yoo.

Q3 2013 Summary

• Net income available to common shareholders totaled $11.3 million or $0.16 per diluted common share
• Total revenue of $34.5 million, an increase of 7.2% from the third quarter of 2012
• Return on average assets of 1.62%; return on average equity of 12.61%
• Operating efficiency ratio of 51.7% for Q3 2013 compared to 57.0% for Q3 2012
• Loans receivable totaled $2.20 billion at September 30, 2013, an increase of 4.9% from $2.09 billion at June 30, 2013
• Total deposits were $2.25 billion at September 30, 2013, an increase of 3.3% from $2.18 billion at June 30, 2013
• Continued improvement in credit quality resulted in no provision for losses on loans and loan commitments for Q3 2013

STATEMENT OF OPERATIONS

Pre-Tax, Pre-Provision Income

Pre-tax, pre-provision income (PTPP) was $16.7 million for the third quarter of 2013, compared with $13.9 million for the third quarter of 2012, and $17.0 million for the second 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 and important information about Non-GAAP measures of financial performance.

Net Interest Income and Margin

Net interest income before credit for losses on loans and loan commitments totaled $26.7 million for the third quarter of 2013, an increase of 4.3% from $25.6 million for the third quarter of 2012, and an increase of 3.7% from $25.8 million in the second quarter of 2013. The increase from prior quarter is largely attributable to large recovery of interest income from loans that were put back on accrual status.

Net interest margin was 4.17% for the third quarter of 2013, compared to 4.35% in the third quarter of 2012, and 4.06% for the second quarter of 2013. The increase in net interest margin from the second quarter of 2013 was also due to the recovery of interest income that was previously reversed out due to certain loans being put on non-accrual status. As credit quality in these loans improved, the loans were put back on accrual status and the previously reversed interest income was recognized during the third quarter of 2013.

Loan yields increased to 5.18% for the third quarter of 2013 from 5.10% for the second quarter of 2013, largely due the recovery of $1.1 million in foregone interest related to loans that were upgraded from non-accrual to accrual status during the third quarter of 2013.

The total cost of deposits was 0.53% for the third quarter of 2013, compared with 0.51% for the second quarter of 2013. The increase in the total cost of deposits is primarily attributable to an increase in the cost of time deposits.

Non-Interest Income

Total non-interest income was $7.8 million for the third quarter of 2013, compared to $6.6 million for the third quarter of 2012, and $8.3 million for the second quarter of 2013. The decrease from the prior quarter was primarily due to lower net gain on sales of loans during the third quarter of 2013 as the premiums for Small Business Administration ("SBA") loan sales continued to decline during the third quarter of 2013.

The $2.8 million in net gains on sales of loans recognized in the third quarter of 2013 was substantially all gains from the sale of SBA loans. During the third quarter of 2013, the Company sold $30.2 million in SBA loans, compared with $30.6 million sold during the second quarter of 2013.

Non-Interest Expense

Total non-interest expense was $17.8 million for the third quarter of 2013, compared with $18.3 million for the third quarter of 2012, and $17.1 million for the second quarter of 2013.

Total salaries and employee benefits expense was $8.8 million for the third quarter of 2013, compared with $9.4 million for the third quarter of 2012, and $9.5 million for the second quarter of 2013. The decrease from the prior quarter was primarily due to lower bonus accruals.

Other non-interest expense for the third quarter of 2013 totaled $6.3 million, compared with $4.4 million in the third quarter of 2012, and $4.9 million for the second quarter of 2013. The increase from the prior periods was primarily attributable to higher professional fees related to acquisition activity.

The Company's operating efficiency ratio was 51.7% for the third quarter of 2013, compared with 57.0% for the third quarter of 2012 and 50.1% for the second quarter of 2013.

Tax Provision

For the third quarter of 2013, the Company recorded a provision for income taxes totaling $5.4 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 $2.20 billion at September 30, 2013, compared to $2.09 billion at June 30, 2013. The increase in total gross loans receivable during the third quarter of 2013 was primarily due to a $103.5 million increase in the real estate secured portfolio.

The following table shows gross loans (excluding loan fees and allowance for loan losses) by loan type:

Loan Categories

The following table shows quarterly loan originations by loan type:

Loan Originations

Originations for the third quarter of 2013 increased to $214.3 million from $194.8 million in the second quarter of 2013. The increase was primarily due to an increase in commercial real estate loan production.

Total SBA loans held-for-sale at the end of the third quarter of 2013 were $53.5 million compared to $59.7 million at the end of the previous quarter. The decision to retain or sell SBA loan production is made on a quarter-to-quarter basis, depending on prevailing pricing in the secondary market and the Company's liquidity needs.

Total deposits were $2.25 billion at September 30, 2013, compared with $2.18 billion at June 30, 2013. The increase in total deposits was driven by higher balances of non-interest bearing demand deposits and jumbo time deposits partially offset by a decrease in money markets. The increase in jumbo time deposits was primarily attributable to a promotional campaign implemented during the third quarter to commemorate the Bank's 33 ^rd anniversary. At September 30, 2013, non-interest bearing demand deposits represented 29.1% of total deposits, compared with 24.8% at September 30, 2012.

CREDIT QUALITY

The Company has experienced improving credit trends for several quarters, most notably evidenced by decreases in criticized and classified loans. In light of the continued improvement in credit quality, the Company determined that no provision for losses on loans and loan commitments was required for the third quarter of 2013. The allowance for loan losses totaled $52.4 million, or 2.38% of gross loans (excluding loans held-for-sale), at September 30, 2013, compared to $54.9 million, or 2.62% of gross loans (excluding loans held-for-sale), at June 30, 2013. The coverage ratio of the allowance for loan losses to non-performing assets was 155.1% at September 30, 2013, compared with 197.9% at June 30, 2013.

Non- Performing Loans

At September 30, 2013, total non-performing loans were $33.0 million, or 1.46% of total gross loans, compared to $26.8 million, or 1.24% of total gross loans, at June 30, 2013. The increase in non-performing loans was primarily attributable to one relationship consisting of loans on four senior assisted living properties totaling approximately $8.0 million. These four loans have been on classified status for some time before being moved to non-performing status during the third quarter of 2013 as the Bank began to move more aggressively towards a resolution of these problem loans. Based upon recent appraisal data, the Bank established a specific reserve of approximately $800 thousand against these loans, which was charged-off at the end of the third quarter of 2013.

Non-performing covered loans (previously acquired loans covered under FDIC loss share agreements) totaled $5.7 million at September 30, 2013.

The following table shows total non-performing loans by loan type:

Gross Loan Charge-offs

Total loan charge-offs for the third quarter of 2013 totaled $3.2 million, compared to $4.4 million in the second quarter of 2013. The largest component of the third quarter 2013 loan charge-offs was the four commercial real estate loans discussed above. Covered loan charge-offs totaled $379 thousand for the third quarter of 2013.

Charge-offs by loan type are reflected in the table below: 

Other measures of credit quality are shown in the following tables:

CAPITAL RATIOS

All of the Company's capital ratios remain in excess of "well capitalized" regulatory requirements as shown in the following table: 

Share Repurchase Program

In March 2013, the Board of Directors of Wilshire Bancorp authorized the repurchase of up to 5% of the Company's outstanding shares of common stock. During the third quarter of 2013, the Company did not repurchase any shares. Since the program's inception, 651,412 shares of common stock have been repurchased for a total price of $3.2 million and an additional 2.9 million shares can be repurchased before the program's expiration. However, the Company has no obligation to repurchase additional shares under this program and may suspend or discontinue it at any time.

Acquisition s of BankAsiana and Saehan Bancorp

On October 1, 2013, the Company completed its acquisition of New Jersey-based BankAsiana. On October 15, 2013, the Company announced that it had received all necessary bank regulatory approvals for its pending acquisition of Los Angeles-based Saehan Bancorp. The pending acquisition of Saehan Bancorp is still subject to the approval of Saehan Bancorp shareholders and to the satisfaction of certain other customary closing conditions. The acquisition of Saehan Bancorp is expected to close by the end of 2013.

CONFERENCE CALL

Management will host its quarterly conference call on October 22, 2013, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are invited to participate in the call by dialing 866-270-6057 (domestic number) or 617-213-8891 (international number) and providing the passcode 24255084.

ABOUT WILSHIRE BANCORP

Headquartered in Los Angeles, Wilshire Bancorp is the parent company of Wilshire Bank, which operates 28 branch offices in California, Texas, New Jersey and New York, and eight loan production offices in Dallas and Houston, TX, Atlanta, GA, Aurora, CO, Annandale, VA, Fort Lee, NJ, Newark, CA, and Bellevue, WA, and is an SBA preferred lender nationwide. Wilshire 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. For more information, please go to www.wilshirebank.com .

ADDITIONAL INFORMATION ABOUT THE PROPOSED MERGER WITH SAEHAN AND WHERE TO FIND IT

This communication relates or may be deemed to relate to a proposed merger between Wilshire and Saehan Bancorp ("Saehan") that is the subject of a registration statement on Form S-4, including a proxy statement/prospectus, filed with the SEC on September 3, 2013 (No. 333-190971), as amended by Amendment No. 1 thereto, and declared effective by the SEC on October 1, 2013, that provides full details of the proposed merger and the attendant benefits and risks. The proxy statement/prospectus was filed with the SEC on October 2, 2013 and was mailed to Saehan shareholders on or about October 7, 2013. This communication is not a substitute for the proxy statement/prospectus or any other document that Wilshire or Saehan may file with the SEC or send to their shareholders in connection with the proposed merger . Investors and security holders are urged to read the registration statement on Form S-4, including the definitive proxy statement/prospectus, and all other relevant documents filed with the SEC or sent to shareholders as they become available because they will contain important information about the proposed merger. All documents, when filed, will be available free of charge at the SEC's website ( www.sec.gov ). You may also obtain these documents by contacting Wilshire's Corporate Secretary, at Wilshire Bancorp, Inc., 3200 Wilshire Boulevard, Los Angeles, California 90010, or via e-mail at alexko@wilshirebank.com . This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.

ABOUT SAEHAN BANCORP

Saehan Bancorp is a bank holding company with headquarters in Los Angeles, California. Its wholly owned subsidiary, Saehan Bank, offers a comprehensive range of financial solutions to meet the needs of multi-ethnic communities in the United States. Saehan Bancorp is committed to satisfying customers and creating shareholder value. Its ten retail branch offices, International Department and SBA Department focus on fulfilling these commitments to customers and shareholders.

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. Such forward-looking statements include, but are not limited to, statements about the benefits of the proposed transaction involving Wilshire and Saehan including future financial and operating results, Wilshire's or Saehan's plans, objectives, expectations and intentions, the expected timing of completion of the transaction, and other statements that are not historical facts. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include risks and uncertainties relating to: (i) the ability to obtain the requisite Saehan shareholder approvals; (ii) the risk that Wilshire or Saehan may be unable to obtain governmental and regulatory approvals required for the transaction, or required governmental and regulatory approvals may delay the transaction or result in the imposition of conditions that could cause the parties to abandon the transaction; (iii) the risk that a condition to closing of the transaction may not be satisfied; (iv) the timing to consummate the proposed transaction; (v) the risk that the businesses will not be integrated successfully; (vi) the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; (vii) disruption from the transaction making it more difficult to maintain relationships with customers, employees or vendors; (viii) the diversion of management time on transaction-related issues; (ix) general worldwide economic conditions and related uncertainties; (x) the effect of changes in governmental regulations; (xi) credit risk associated with an obligor's failure to meet the terms of any contract with the bank or to otherwise perform as agreed; (xii) interest risk involving the effect of a change in interest rates on both the bank's earnings and the market value of the portfolio equity; (xiii) liquidity risk affecting the bank's ability to meet its obligations when they come due; (xiv) price risk focusing on changes in market factors that may affect the value of traded instruments in "mark-to-market" portfolios; (xv) transaction risk arising from problems with service or product delivery; (xvi) compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards; (xvii) strategic risk resulting from adverse business decisions or improper implementation of business decisions; (xviii) reputation risk that adversely affects earnings or capital arising from negative public opinion; (xix) terrorist activities risk that results in loss of consumer confidence and economic disruptions; (xx) economic downturn risk resulting in deterioration in the credit markets; (xxi) greater than expected noninterest expenses; (xxii) excessive loan losses; and (xxiii) other factors we discuss or refer to in the "Risk Factors" section of our most recent Annual Report on Form 10-K filed with the SEC. Additional risks and uncertainties are identified and discussed in Wilshire's reports filed with the SEC and available at the SEC's website at www.sec.gov . Each forward-looking statement speaks only as of the date of the particular statement and Wilshire undertakes no obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

PARTICIPANTS IN THE SOLICITATION

Wilshire, Saehan and their respective directors and executive officers may be deemed to be participants in any solicitation of proxies in connection with the proposed merger. Information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, are contained in the proxy statement/prospectus and other relevant materials filed or to be filed with the SEC regarding the merger, in each case when they become available. Investors should read carefully the proxy statement/prospectus filed with the SEC on October 2, 2013 before making any voting or investment decisions.

Alex Ko, EVP & CFO, (213) 427-6560 www.wilshirebank.com