Profile: Wilshire Bancorp Inc (WIBC.O)
24 Jun 2016
Wilshire Bancorp, Inc. (Wilshire), incorporated on December 9, 2003, is a bank holding company, which offers a range of financial products and services primarily through its subsidiary, Wilshire Bank (the Bank), a California state-chartered commercial bank. The Bank has over 35 full-service branch offices in Southern California, Texas, Alabama, Georgia, New Jersey and the greater New York City metropolitan area. It also has approximately six loan production offices (LPOs) of which over four are utilized primarily for the origination of loans under the small business administration (SBA) lending program located in California, Colorado, Georgia and Washington and approximately two are utilized primarily for the origination of residential mortgage loans located in Southern California. The Company has approximately $3.84 billion in total loans (net of deferred fees and including loans held-for-sale) and approximately $3.84 billion in deposits. The Company operates a community bank focused on the general commercial banking business, with its primary market, including the multi-ethnic populations of Southern California, Texas, Alabama, Georgia, New Jersey and the New York metropolitan area.
The Company offers Internet banking, which allows its customers to access their deposit and loan accounts through the Internet. It also offers mobile banking, which allows its customer to access their deposit accounts through personal electronic devices, such as smartphones and tablets. Through either Internet or mobile banking, customers are able to obtain transaction history and account information, transfer funds between accounts, make online bill payments and open deposit accounts.
The Company's lending activities include commercial real estate and home mortgage lending; commercial business lending and warehouse lending; SBA lending; consumer loans; trade finance, and construction lending. It offers commercial real estate loans to finance the acquisition of, or to refinance the existing mortgages on commercial properties, which include retail shopping centers, office buildings, industrial buildings, warehouses, hotels, automotive industry facilities, apartment buildings and other commercial properties. The properties collateralizing real estate loans are principally located in the markets where the Company's retail branches are located. These locations include Southern California, Texas, Alabama, Georgia, New Jersey, and the greater New York City metropolitan area. It also provides commercial real estate loans through its LPOs. The real estate loans, including construction loans constitutes approximately 79% of its loan portfolio. Its total home mortgage loan portfolio totals over $244.9 million.
The Company offers commercial business loans to business entities, such as sole proprietorships, partnerships and corporations. These loans include business lines of credit and business term loans to finance operations to provide working capital or for specific purposes, such as to finance the purchase of assets, equipment or inventory. Lines of credit are extended to businesses or individuals based on the financial strength and integrity of the borrower. These lines of credit are secured primarily by business assets, such as accounts receivable or inventory, and have maturities of one year or less. It also provides warehouse lines of credit to mortgage loan originators. Business term loans are made to finance the acquisition of fixed assets, refinance short-term debts, or to finance the purchase of businesses. Its warehouse loans total over $245.4 million.
The Company's SBA lending business places an emphasis on minority-owned businesses. Its SBA market area includes the geographic areas encompassed by the Company's full-service banking offices in Southern California, Texas, Alabama, Georgia, New Jersey and the New York City metropolitan area, as well as the multi-ethnic population areas surrounding its LPOs in other states. The Company's consumer loans include personal loans, auto loans and other loans made by banks to individual borrowers. The majority of consumer loans are concentrated on personal lines of credit and installment loans to individuals. Its consumer loan portfolio represents 0.4% of the loan portfolio.
The Company's investment portfolio consists of securities of government sponsored enterprises, mortgage backed securities, collateralized mortgage obligations, corporate securities and municipal securities. The Company's sources of interest income include investments. The Company classifies all its investment securities as held-to-maturity or available-for-sale. Investment securities that the Company intends to hold until maturity are classified as held-to-maturity and all other investment securities are classified as available-for-sale. The investment securities available-for-sale totals over $535.5 million, and total investments securities held-to-maturity totals over $21,000.
Sources of Funds
The Company's primary sources of funds are deposits and loan repayments. It offers a range of accounts for depositors, which are designed to attract both short-term and long-term deposits. These accounts include certificates of deposit (CDs), regular savings accounts, money market accounts, checking and negotiable order of withdrawal (NOW) accounts, installment savings accounts and individual retirement accounts. The Company offers various types of CDs with a maximum maturity of over five years. The majority of its CDs all have maturities of one to twelve months and pay simple interest credited monthly or at maturity. It offers savings accounts that allow for unlimited deposits and withdrawals, provided that depositors maintain a $100 minimum balance. It offers Money market accounts, which pay a variable interest rate that is tiered depending on the balance maintained in the account. Its Checking and NOW accounts are non-interest and interest bearing accounts, respectively, and may include service fees based on activity and balances. NOW accounts pay interest, but require a higher minimum balance to avoid service charges. To supplement the Company's deposits as a source of funds for lending or other investment, it borrows funds in the form of advances from the Federal Home Loan Bank of San Francisco.
Wilshire Bancorp Inc
3200 WILSHIRE BLVD
LOS ANGELES CA 90010-1333