Mon, Dec 22, 2014, 6:03 AM EST - U.S. Markets open in 3 hrs 27 mins

Recent

% | $
Quotes you view appear here for quick access.

Wilshire Bancorp Inc. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • cohsgrad cohsgrad Jan 24, 2012 9:29 AM Flag

    Results 2011

    Reiterating what Sam said,

    Some former execs were guilty of hiding some losses from examiners and not booking them.

    They generated losses for too long and had to reserve for their tax loss carryforwards rather than carry them as an asset.

    Their capital levels were too low as a result of the losses and the tax write-off. Also, don't forget they have that TARP stock that has to be paid off too.

    Net result was the Comptroller of the Currency and the bank entered into a memo of understanding as to future operations. Management also may have intentionally pushed shares down further in order to benefit themselves as 10% of the share issuance was reserved not just for themselves which would trigger reporting requirements but for family members who could flip the shares for a nice gain shortly after the issuance without bothering to let shareholders know they sold. They may be still holding the shares for all I know and I might have been o.k. with management buying the shares but relatives not subject to reporting rules crosses a line in my judgement.

    So bottom line here you have a nice company but you also have management who have a history of not being completely honest.

    Hanmi may be part of the reason for the spike in the share price but it sure wouldn't be a good reason for a spike in my not so humble opinion.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • <<Some former execs were guilty of hiding some losses from examiners and not booking them.>>

      Credit numbers do not look so bad. Those provisions when Yoo took charge looks more like a case of setting the bar low

      <<They generated losses for too long and had to reserve for their tax loss carryforwards rather than carry them as an asset. Their capital levels were too low as a result of the losses and the tax write-off. Also, don't forget they have that TARP stock that has to be paid off too.>>

      As we see with their current capital ratios, they were not too low. 9% TCE ratio for gods sake. Remember TCE DOES NOT include the TARP prefs. They have much more capital than they need.

      <<Net result was the Comptroller of the Currency and the bank entered into a memo of understanding as to future operations. >>

      From the recent CCs, it does not look like regulators were too tough on this issue. It may be more a case of over-compensating to have them on the good side in case of a merger.

      <<Management also may have intentionally pushed shares down further in order to benefit themselves as 10% of the share issuance was reserved not just for themselves which would trigger reporting requirements but for family members who could flip the shares for a nice gain shortly after the issuance without bothering to let shareholders know they sold. They may be still holding the shares for all I know and I might have been o.k. with management buying the shares but relatives not subject to reporting rules crosses a line in my judgement. So bottom line here you have a nice company but you also have management who have a history of not being completely honest.>>

      You may have a point here

      • 1 Reply to plan.maestro
      • Believe your common ratio is after the latest stock issuance. Prior to the stock issuance it was arguably too low; at least according to the Comptroller it was.

        I agree with your comment on setting the bar low. Suppose that is the way the game is played but that doesn't mean I like it. I want consistency when it comes to evaluating credit rather than games. He also talks a lot about a "credit culture" and while I completely agree about the need for a focus on appropriately monitoring credits I believe WIBC has always had a credit culture so his saying this over seems a bit trite. Suppose it doesn't hurt anything though.

        It is a well run company with a nice brand.

 
WIBC
9.93+0.13(+1.33%)Dec 19 4:00 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.