Wilshire Bancorp (WIBC) in Los Angeles reported an increase in quarterly profit tied largely to recent acquisitions.
The $3.7 billion-asset company's second-quarter profit jumped 27% from a year earlier, to $14.7 million. Earnings of 19 cents a share were in line with the average estimate of analysts polled by Bloomberg.
Returns from the bank's lending portfolio drove the earnings increase. Net interest income jumped 40%, to $36.1 million, due to higher loan balances. Total loans rose 35%, to $2.9 billion, largely because of the company's purchases of the $204 million-asset BankAsiana and the $592 million-asset Saehan Bancorp.
"With the integration of the BankAsiana and Saehan Bancorp acquisitions complete, we have been able to devote more resources and shift our focus to business development with our larger banking team," Jae Whan Yoo, Wilshire's president and chief executive, said in a press release Monday.
The company did not record a loan-loss provision in the second quarter, attributing the decision to improved asset quality. The net interest margin expanded 38 basis points, to 4.35%.
Wilshire's results were also aided by higher loan sales, as noninterest income increased 29%, to $10.7 million.
Noninterest expenses increased 44%, to $24.6 million, because of higher salary obligations and merger-related expenses.