PlanMaestro Posted May 30, 2012 Share Posted May 30, 2012 * One of the highest PTPP/Assets in the nation. * 2nd largest Korean American bank. Briefly the largest one before the Center/Nara merger, after being a distant fourth follower in the early 2000s. * Capital to sustain a bank almost twice its size. * Reserves that more that exceeds its non-performing assets * Credit issues so much in the past that last Q did not even had to provision * Priced at 1x BV and around 5x earnings, considering its core profitability that is very cheap indeed. * Large valuation allowance against their DTA * Paid TARP already. * And today was released from its letter of understanding There is more on the US Bancorp thread that you can find here, including risks and some history on how it got here: http://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/usb-us-bancorp/msg44357/#msg44357 Link to comment Share on other sites More sharing options...
Rabbitisrich Posted May 31, 2012 Share Posted May 31, 2012 Still looks pretty good to me. One thing the CEO could advertise more is that the NPL/(Gross Loans) figures include FDIC loss shares. Covered non-performers make up a hefty portion of total non-performers. Link to comment Share on other sites More sharing options...
Rabbitisrich Posted May 31, 2012 Share Posted May 31, 2012 I understand why some investors avoid smallish CRE focused community banks. It can be frustrating to see a good balance sheet go to heck in two quarters just due to the nature of the asset mix. But these guys wrote 68% of their CRE at under 70% LTV pre-Mirae. That shows discipline at a time when your customers' credit reports show more competitor names with every application. Link to comment Share on other sites More sharing options...
Rabbitisrich Posted May 31, 2012 Share Posted May 31, 2012 Any community bankers want to chime in on this company? Does the drop off in charge-offs and special mention look temporary? Comparisons to BBCN from an operational standpoint? Link to comment Share on other sites More sharing options...
sdev Posted June 4, 2012 Share Posted June 4, 2012 Interesting, thanks Plan! Link to comment Share on other sites More sharing options...
PlanMaestro Posted July 23, 2012 Author Share Posted July 23, 2012 The negative provision is a one off but still ... a fantastic performance. For a bank priced around 1.1x BX and very over capitalized, it is throwing high double digit adjusted ROE, close to 2% adjusted ROA, and has growth potential. Wilshire Bancorp, Inc., the holding company for Wilshire State Bank ("the Bank"), today reported net income available to common shareholders of $22.1 million, or $0.31 per diluted common share, for the quarter ended June 30, 2012. This compares to net income available to common shareholders of $2.1 million, or $0.04 per common share, for the same period of the prior year, and net income available to common shareholders of $17.9 million, or $0.25 per common share, for the first quarter of 2012. The increase in net income for the second quarter of 2012 is primarily attributable to a $10.0 million negative provision for losses on loans and commitments and higher non-interest income. Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp, said, "We delivered another strong quarter that was driven by low credit costs, increased loan production, and improved net interest margin. Our higher loan production helped generate 15% annualized growth in total gross loans during the second quarter. Importantly, we believe we are achieving very balanced growth with meaningful increases in our commercial real estate, commercial and industrial, residential real estate, and SBA loan production. "We have also seen several consecutive quarters of positive trends in credit quality, which among other factors, contributes to our conclusion that it is the appropriate time for us to reduce our allowance for loan losses from the elevated level we built last year. This resulted in recording a negative provision for loan losses of $10 million during the second quarter. If credit quality remains at its current level or improves further, we may determine that a further reduction in our allowance for loan losses going forward is appropriate. We expect to continue generating a strong level of profitability over the remainder of 2012, driven by low credit costs and a continued low tax rate," said Mr. Yoo. Net interest margin expanded to 4.13% in Q2 2012 from 4.07% in Q1 2012 2012 Annualized return on average assets of 3.45% and return on average equity of 32.1% for Q2 Link to comment Share on other sites More sharing options...
Rabbitisrich Posted July 24, 2012 Share Posted July 24, 2012 I dunno... $28MM PTPP, or $26.5MM after preferred share, to 2Q12 vs. a market cap of $387MM... highly capitalized... TARP preferreds and warrants repurchased... $2MM of non-interest expense related to improving credit quality... increased origination of residential mortgages (not a bad time to start)... what's the bear thesis? Link to comment Share on other sites More sharing options...
PlanMaestro Posted July 24, 2012 Author Share Posted July 24, 2012 Putting on the other hat, why did they do that very dilutive capital raise last year? It is now very clear that it had nothing to do with either credit quality or capital. My best guess is that they are circling Hanmi (HAFC) and they needed to pacify regulators (and the FBI). That potential acquisition might be expensive in the short term since it looks like Hanmi is recovering fast too. But what a franchise that could be. Another part of the bear thesis. Competitors, that my guess is that they are very concerned with this upstart, have taken every conference opportunity to throw darts at Wilshire talking about them as the "car wash lenders" and mentioning the FBI story. Well, Wilshire credit quality has been much, much better than for the other Korean banks despite all this noise. But nevertheless it has appeared in some analyst reports under "underwriting concerns". In the meanwhile, the competition is distracted by their own merger, clutching at straws to be the largest Korean bank, while Wilshire is much more profitable and Hanmi for the taking. Link to comment Share on other sites More sharing options...
Rabbitisrich Posted July 25, 2012 Share Posted July 25, 2012 Are you referring to BBCN? Interesting comment on the gas station - carwash. Sounds like an inside baseball sore spot. I regard that merger as being successful to date. Their charge-off rates are much more competitive with WIBC's than their balance sheet ratios over the recession. TDRs also perform better. WIBC is cheaper, but both are good bankers. I would rather that WIBC just repurchase shares than buy HAFC above book. There are some synergies to cutting out a layer of executive pay and back office redundancies, but these California based korean-american banks share similar geographic footprints and draw from a similar deposit pool (excl. brokered deposits). Even the loan officers switch from one bank to another and back. Link to comment Share on other sites More sharing options...
PlanMaestro Posted October 23, 2012 Author Share Posted October 23, 2012 Another round of good results. NIM going up and last release of DTA allowance. Lots of loan reserves waiting to be released and their stratospheric capital ratios keep going up. http://seekingalpha.com/news-article/4511921-wilshire-bancorp-reports-net-income-of-38-5-million-or-0-54-earnings-per-share-for-third-quarter-2012?source=email_portfolio&ifp=0 Link to comment Share on other sites More sharing options...
PlanMaestro Posted January 24, 2013 Author Share Posted January 24, 2013 Hanmi Said to Seek Sale. http://www.bloomberg.com/news/2013-01-09/hanmi-said-to-seek-sale.html Link to comment Share on other sites More sharing options...
PlanMaestro Posted January 24, 2013 Author Share Posted January 24, 2013 Good results once again: 2.2% ROA run rate and way too much capital. http://finance.yahoo.com/news/wilshire-bancorp-reports-net-income-041730978.html For the fourth quarter of 2012, the Company recorded a provision for income taxes totaling $8.4 million, reflecting an effective tax rate of 35.6%. This reflects the Company's return to a more normalized effective tax rate following several quarters of recording no tax provision or a tax benefit due to the reversal of the valuation allowance that had been established against the Company's deferred tax asset. Link to comment Share on other sites More sharing options...
Rabbitisrich Posted January 31, 2013 Share Posted January 31, 2013 LOS ANGELES, Jan 31, 2013 (BUSINESS WIRE) -- Wells Fargo & Company (NYSE: WFC) said today it has formed a Commercial Banking unit dedicated to the growing and dynamic base of Korean middle market companies in the U.S., many of them concentrated in Southern California. Sungsoo Han, a 22-year veteran of Hamni Bank and Wilshire State Bank, has been appointed senior vice president and senior regional director of Wells Fargo's Korean Division. Prior to joining Wells Fargo, Han served as executive vice president and chief lending officer of Wilshire State Bank, with responsibility for all lending, including commercial banking, Small Business Administration, home mortgage, commercial real estate, insurance, and wealth management departments. "Korean companies are more comfortable doing business with Korean-speaking bankers," said Han. "Taking a different approach than other major banks, Wells Fargo is investing in local Korean bankers who are fluent in their language but more importantly understand our culture. Fluent in Korean culture and language, Han and his team will make decisions on a broad array of loans and owner-occupied real estate loans. This new, L.A.-based unit focuses on developing long-term, professional business relationships with both Korean multinational subsidiaries and domestic Korean enterprises. Wells Fargo Commercial Banking lenders are empowered to make decisions regarding pricing and structure as it relates to the individual needs of each business. Wells Fargo offers a wide spectrum of products and services to meet the growing needs of the Korean companies. "Wells Fargo is very pleased to present Mr. Sungsoo Han and his unit to the Korean community and its key enterprises," said MaryLou Barreiro, head of Commercial Banking for Wells Fargo in Greater Los Angeles East. "His lending experience and diverse network of business contacts will serve the Korean community and Wells Fargo customers well." More than a quarter-million Koreans live in Los Angeles County, with nearly half in the three-mile radius of Koreatown, making it one of highest-density neighborhoods in the United States, according to the Korean American Chamber of Commerce of Los Angeles (KACCLA). California is South Korea's ninth-largest trading partner, while South Korea is the 11th-largest sources of foreign-owned and affiliated companies in Los Angeles County. "It is critical to understand and be able to speak the language when you reach out to the smaller communities," said Woo-sung Lim, president of the KACCLA. "Business becomes natural when you understand your customers and your customers understand you. And with Mr. Sungsoo Han on board at the Korean Division of Wells Fargo Commercial Banking, it will definitely help reaching out to huge number of Korean American Business owners." Link to comment Share on other sites More sharing options...
Olmsted Posted March 28, 2013 Share Posted March 28, 2013 Share repurchase announced: http://www.bloomberg.com/article/2013-03-28/aEhVGTZB4WPY.html Link to comment Share on other sites More sharing options...
PlanMaestro Posted June 11, 2013 Author Share Posted June 11, 2013 http://www.americanbanker.com/people/hanmi-names-ex-first-california-chief-new-ceo-1059774-1.html Link to comment Share on other sites More sharing options...
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