Wilshire Bancorp Inc. in Los Angeles on Tuesday reported a $4.6 million second-quarter loss after selling off $48 million of nonperforming and delinquent loans.
The $3.4 billion-asset company reported a per-share loss of 15 cents, after posting net income of 44 cents a share, or $12.8 million, for last year's second quarter. It had warned it might lose up to $5 million.
The loss was driven by a $32.2 million provision for loan losses, Wilshire said, of which $13.4 million resulted from the sale of 18 nonperforming and delinquent loans. The provision increased 89% from the first quarter, and net loan chargeoffs nearly tripled, to $17.2 million.
The loan sales lowered nonperforming assets by 15%, to $90.5 million, or 2.63% of total assets as of June 30. The company has a total risk-based capital ratio of 15.17%.