4Q Profit Spikes at Wilshire Bancorp on Loan-Loss Credit

Earnings at Wilshire Bancorp (WIBC) soared in the fourth quarter after the Los Angeles company opted not to set aside funds for problem loans.

The holding company of the $2.8 billion-asset Wilshire State Bank earned $15.2 million in the quarter, a 162% increase from a year ago. Per-share earnings of 21 cents came 3 cents above what analysts polled by Bloomberg had expected.

Wilshire's quarterly profit jump was due mainly to a negative provision for loan losses. The bank recorded a $12 million credit for the quarter, compared to a $1.5 million provision for loan losses it took in the year-prior period.

Wilshire's net interest income rose 2%, to $25.6 million, as a 4% slide in interest income was offset by a 30% decline in interest expense. Its interest margin widened by 16 basis points, to 4.33%, and chargeoffs declined 26%, to $3 million.

Noninterest income rose 17%, to $6.7 million, as Wilshire's profit on loan sales more than tripled, to $1.2 million.