Profile: Wilshire Bancorp Inc (WIBC.O)
24 Apr 2015
Wilshire Bancorp, Inc., incorporated on December 9, 2003, is a bank holding company, offering a range of financial products and services through its main subsidiary, Wilshire Bank (the Bank), a California state-chartered commercial bank. The Company operates a community bank focused on the general commercial banking business, with its markets encompassing the multi-ethnic populations of Southern California, Texas, New Jersey, and the New York metropolitan area. The Bank has 38 full-service branch offices in Southern California, Texas, New Jersey, and the greater New York City metropolitan area. It also has 9 loan production (LPOs) offices, utilized for the origination of loans under its Small Business Administration (SBA) lending program in California, Colorado, Georgia, Texas (2 offices), New Jersey, Washington, and Virginia. The Company operates in three business segments: Banking Operations, Trade Finance Services (TFS), and SBA Lending Services. The Company raises funds from deposits and borrowings for loans and investments, and provides lending products, including commercial, consumer, and real estate loans to its customers. The SBA department provides customers with access to the United States SBA guaranteed lending program. Its TFS primarily deals in letters of credit issued to customers whose businesses involve the international sale of goods. Its TFS services include the issuance and negotiation of letters of credit, as well as the handling of documentary collections. It also provides importers with trade finance lines of credit, which allow for issuance of commercial letters of credit and financing of documents received under such letters of credit, as well as documents received under documentary collections. Exporters are assisted through export lines of credit as well as through immediate financing of clean documents presented under export letters of credit.
The Company engages in lending activities, including commercial real estate and home mortgage lending, commercial business lending and trade finance, SBA lending, consumer loans, 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. It also provides commercial real estate loans through its LPOs. As of December 31, 2013, real estate loans, including construction loans constituted approximately 83.8% of its loan portfolio. Commercial real estate loans have 7-year maturities with up to 25-year amortization of principal and interest and loan-to-value ratios of 60-70% at origination of the appraised value or purchase price, whichever is lower. Its total home mortgage loan portfolio outstanding at the end of 2013 was $128.5 million. It offers commercial business loans to sole proprietorships, partnerships, and corporations. Commercial business 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. It also provides warehouse lines of credit to mortgage loan originators. Warehouse loans at December 31, 2013 totaled $45.2 million. It provides other banking services tailored to the small business market. The Bank’s SBA market area includes the geographic areas encompassed by its full-service banking offices in Southern California, Texas, New Jersey, and the New York City metropolitan area, as well as the multi-ethnic population areas surrounding its LPOs in other states. Consumer loans include personal loans, auto loans, and other loans typically made by banks to individual borrowers. As of December 31, 2013, its consumer loan portfolio represented 0.5% of the loan portfolio.
The Bank’s investment portfolio consists of securities of government sponsored enterprises, mortgage backed securities, collateralized mortgage obligations, corporate securities, and municipal securities. It classifies all its investment securities as held-to-maturity or available-for-sale. Investment securities that it intends to hold until maturity are classified as held-to-maturity, and all other investment securities are classified as available-for-sale. As of December 31, 2013 investment securities available-for-sale totaled $352.4 million and total investments held-to-maturity totaled $35,000.
Sources of Funds
The Bank’s primary sources of funds are deposits and loan repayments. It offers a variety 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 (IRAs). It offers several types of CDs with a maximum maturity of 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. Money market accounts pay a variable interest rate that is tiered depending on the balance maintained in the account. Minimum opening balances vary. Checking and NOW accounts are non-interest and interest bearing accounts, respectively, and include service fees based on activity and balances. The Bank 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