Los Angeles-based Wilshire Bancorp (WIBC) said this week that it had a third-quarter profit of $11.3 million, largely due to steadily improving credit quality and net gains on loan sales.
Although that was a steep 71% drop from the same quarter in 2012, the difference was primarily caused by a $12 million credit for loan losses it received last year. At 16 cents per share, the company beat the estimates of analysts polled by Bloomberg by 1 cent.
The $2.8 billion-asset company's net interest income climbed 4% to $26.7 million thanks to increased income from loans put back on accrual status. Its net interest margin fell 18 basis points to 4.17%.
Wilshire's noninterest income rose 18% to $7.8 million, due mostly to net gains on loan sales. Noninterest expenses fell 3% to $17.8 million.
Stronger credit quality led Wilshire to record no loan-loss provisions while chargeoffs rose 3% to $3.2 million. The company attributed the increase to four assisted-living properties that had been listed as classified for some time before the company moved them to nonperforming status in the third quarter.
Wilshire completed its acquisition of BankAsiana in Palisades Park, N.J., earlier this month and announced plans to buy Saehan Bancorp (SAEB) in Los Angeles for $105 million in cash and stock in July.