Thursday, July 23, 2015

Seeking Alpha: Mortgages And Rates Can Drive Growth, But Wilshire Bancorp Has Had A Good Run

I've been bullish on the value potential of Wilshire Bancorp (NASDAQ:WIBC) for some time, but thought that investors would have to be patient to see the real value come through. I suppose another six months is exceedingly patient for some investors, but I was surprised to see the strong 30%-plus move in the shares since my last article. That performance beats peers like Hanmi (NASDAQ:HAFC) and BBCN (NASDAQ:BBCN) by a healthy margin, as well as the KBW Regional Banking (NYSEARCA:KRE) index.

At this point, I'm less bullish on Wilshire Bancorp shares. I like the bank's move into residential mortgage originations, as I believe this will be a solid fee/gains-generating opportunity. I also like the company's leverage to higher rates and further expansion to Korean-American communities outside of its core Southern California market. All of that said, I think the risk and potential reward are in much closer balance now, and it's no longer as appealing for value hounds in the banking sector.

Continue here:
Mortgages And Rates Can Drive Growth, But Wilshire Bancorp Has Had A Good Run

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