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Saehan Bancorp Reports Third Quarter Results

Wednesday, November 21, 2012 7:15 PM


Saehan Bancorp (OTCBB:SAEB) today reported results for its third quarter ended September 30, 2012, reflecting continued modest profitability and a sharp decrease in nonperforming loans.

The company reported net income of $302,000, or $0.001 per share, for the third quarter of 2012 compared with $720,000, or $0.004 per share, a year ago. The return on average equity for the third quarter of 2012 was 2.10 percent and the return on average assets was 0.20 percent compared with 6.28 percent and 0.52 percent, respectively, for the third quarter of 2011.

Other highlights for the third quarter of 2012 included:

  • Total assets at September 30, 2012 increased 9.8 percent to $619.0 million from $563.6 million a year ago.
  • Net loans were $349.2 million at September 30, 2012 compared with $370.3 million last year.
  • Total deposits at September 30, 2012 increased 12.9 percent to $536.8 million from $475.6 million at September 30, 2011.
  • Net interest margin for the third quarter of 2012 was 2.82 percent compared with 3.29 percent reported in the same period a year ago.
  • Efficiency for the third quarter of 2012 was 94.6 percent compared with 90.2 percent in the third quarter of 2011.
  • Nonperforming loans at September 30, 2012 decreased to $6.1 million from $20.5 million at September 30, 2011.

“Third quarter results reflect a continued focus on the execution and implementation of strategies to improve the bank’s asset quality and achieve higher profitability. We realized both of these internal targets despite ongoing challenges in the economy, and look forward to reporting further progress in our turnaround initiatives,” said Dong Il Kim, president and chief executive officer.

Net interest income before provision for loan losses was $3.9 million in the third quarter of 2012 compared with $4.5 million in the same period a year ago. Net interest margin for the third quarter of 2012 was 2.82 percent compared with 3.29 percent in the third quarter a year earlier. Yield on earning assets for the third quarter of 2012 was 3.57 percent compared with 4.50 percent for the third quarter of 2011. Cost of funds for the third quarter of 2012 was 1.18 percent compared with 1.43 percent for the third quarter of 2011.

Noninterest income in the third quarter of 2012 totaled $1.7 million compared with $1.8 million a year ago. The decrease was primarily attributable to a $367,000 loss on the sale of OREOs, partially offset by an increase in gain on sale of loans in the third quarter of 2012.

Noninterest expense for the third quarter of 2012 was $5.3 million compared with $5.6 million for the third quarter of 2011. The efficiency ratio for the third quarter of 2012 was 94.6 percent compared with 90.2 percent in the third quarter of 2011.

Nonperforming loans were $6.1 million at September 30, 2012 -- down $14.4 million from $20.5 million at September 30, 2011. Nonperforming loans and OREO represented 1.3 percent of total assets at September 30, 2012 compared with 4.5% at September 30, 2011.

Total assets were $619.0 million as of September 30, 2012 -- representing an increase of $55.4 million, or 9.8 percent, from the $563.6 million in total assets reported on September 30, 2011. Total deposits as of September 30, 2012 increased $61.2 million, or 12.9 percent, to $536.8 million from $475.6 million as of September 30, 2011. Shareholders’ equity was $58.4 million at September 30, 2012 compared with $58.5 million at September 30, 2011. The Leverage Ratio, Tier 1 Risk-based Capital Ratio and Total Risk-based Capital Ratio at September 30, 2012 were 12.6 percent, 20.0 percent and 21.4 percent, respectively, compared with 13.9 percent, 19.5 percent and 21.0 percent, respectively, at September 30, 2011.

About Saehan Bancorp

Saehan Bancorp is a bank holding company with headquarters in Los Angeles, California. Its wholly owned subsidiary, Saehan Bank, offers a comprehensive range of financial solutions to meet the needs of multi-ethnic communities in the U.S. Saehan Bancorp is committed to satisfying customers and creating shareholder value. Its ten retail branch offices, International Department, and SBA Department of Saehan Bank focus on fulfilling these commitments to customers and shareholders.

Safe Harbor Statement

This press release may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from the projected, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.”

 
Saehan Bancorp
Condensed Balance Sheet
(Dollars in thousands)
     
30-Sep
2012 2011
Assets:
Cash & due from banks - demand 18,151 21,111
Due from banks-interest bearing 123,662 125,108
Federal fund sold 73,960 8,425
Securities available-for-sale 40,106 20,164
Loans 363,164 392,583
Less: Allowance for loan losses 13,979 22,259
Net loans 349,185 370,324
Loans held for sale 529 1,194
Bank premises and equipment, net 1,734 2,254
OREO and other investment in real estate 1,870 4,862
Other assets 9,779 10,122
Total assets 618,976 563,564
 
Liabilities and stockholders' equity:
Deposits:
Noninterest bearing demand 159,299 136,797
Interest bearing demand and savings 181,357 138,809
Time deposits 196,119 199,991
Total deposits 536,775 475,597
Other liabilities 23,760 29,418
Total liabilities 560,535 505,015
Total stockholders' equity 58,441 58,549
Total liabilities and
stockholders' equity 618,976 563,564
Book value per share 0.25 0.25
Period end shares outstanding 237,197,874 237,197,874
Nonperforming loans 6,121 20,493
 
Tier I leverage 12.62 % 13.93 %
Tier I risk-based capital 19.99 % 19.51 %

Total risk-based capital

21.41 % 20.97 %
 
Saehan Bancorp
Condensed Income Statement and Comprehensive Income
(Dollars in thousands except per share data)
       
For the three For the nine
months ended months ended
30-Sep 30-Sep
  2012     2011     2012     2011  
Interest income:
Interest and fees on loans 5,121 5,867 15,370 18,419
Interest on securities 112 164 407 637
Interest on federal funds sold 24 36 75 89
Other interest income 144 72 426 212
Total interest income 5,401 6,139 16,278 19,357
Interest expense:
Deposit 1,407 1,492 4,340 5,412
Other 143 160 487 1,270
Total interest expenses 1,550 1,652 4,827 6,682
Net interest income before

provision for loan losses

3,851

 

4,487 11,451 12,675

Provision for loan losses

- - - -
Non-interest income:
Service charges on deposit accounts 417 481 1,236 1,474
Gain on sale of loans 1,212 624 1,883 2,532
Gain on sale of investment securities 96 - 886 3
Gain (loss) on sales of OREO (367 ) 163 (787 ) 563
Other operating income 387 493 1,514 1,404
Total non-interest income 1,745 1,761 4,732 5,976
Non-interest expense:
Salaries and employee benefits 2,499 2,191 7,286 6,628
Net occupancy and equipment expense 942 1,066 2,956 3,446
Other operating expense 1,851 2,381 5,784 6,773
Total non-interest expenses 5,292 5,638 16,026 16,847
Income before income taxes 304 610 157 1,804
Income taxes 2 (110 ) 5 (109 )

Income before extraordinary items

302 720 152 1,913
Extraordinary items, net of taxes
Net income 302 720 152 1,913
Net income per share -
Basic $ 0.001 $ 0.004 $ 0.001 $ 0.010
Diluted $ 0.001 $ 0.004 $ 0.001 $ 0.010
 
Basic average common shares
outstanding 237,197,874 189,620,700 237,197,874 189,274,064
Diluted average common shares
outstanding 237,267,265 189,620,700 237,244,783 189,274,064
 
Charge offs 2,242 1,063 4,794 8,931
Recoveries 413 382 1,552 5,005
 
 

For the three

For the nine
months ended months ended
30-Sep 30-Sep
  2012     2011     2012     2011  
Key Operating Ratios:
Return on average assets 0.20 % 0.52 % 0.03 % 0.45 %
Return on average equity 2.10 % 6.28 % 0.35 % 5.62 %
Yield on earning assets 3.57 % 4.50 % 3.65 % 4.79 %
Cost on interest bearing liabilities 1.18 % 1.43 % 1.62 % 1.82 %
Net interest margin 2.82 % 3.29 % 2.57 % 3.13 %
Cost of funds 0.91 % 1.30 % 1.19 % 1.72 %
Efficiency ratio 94.57 % 90.24 % 99.03 % 90.33 %
Average stockholders' equity to
average total assets 9.34 % 8.24 % 9.64 % 7.99 %

(Source: Business Wire )
(Source: Quotemedia)

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