Saehan Bancorp Reports First Quarter Results
May 13, 2009 5:36:00 PM
Copyright Business Wire 2009
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View Additional ProfilesLOS ANGELES--(BUSINESS WIRE)-- Saehan Bancorp (OTCBB:SAEB) today reported results for its first quarter ended March 31, 2009, reflecting the continued impact of current economic conditions and a reduced net loss on a sequential quarterly basis.
The company reported a net loss of $73,000, or $0.01 per diluted share for the first quarter of 2009 compared with net income of $1.0 million, or $0.05 per diluted share a year ago and net loss of $11.4 million, or $0.85 per diluted share for the fourth quarter of 2008. The return on average equity for the first quarter of 2009 was -0.44 percent and the return on average assets was -0.04 percent compared with 5.93 percent and 0.46 percent, respectively, for the first quarter of 2008.
Other highlights for the first quarter of 2009 included:
-- Total assets increased $52.0 million, or 6.0 percent from the same
period a year ago.
-- Net loans decreased $11.1 million from the same period a year ago.
-- Total deposits increased $87.0 million, or 13.1 percent, from a year
earlier.
-- Net interest margin was 2.52 percent, compared with 3.64 percent for the
first quarter of 2008.
-- Efficiency ratio was 98.2 percent, compared 69.75 percent for the first
quarter of 2008.
-- The ratio of nonperforming loans to net loans was 7.92 percent compared
with 2.17 percent at March 31, 2008.
-- Noninterest income was $424,000, compared with $1.4 million for the
first quarter of 2008.
-- Noninterest expense was $5.2 million, compared with $6.0 million for the
first quarter of 2008.
"While capital ratios remain well above the guidelines established by regulatory agencies, management continues to focus attention on opportunities to further strengthen the bank's capital position and to meet or exceed liquidity requirements in this challenging economic environment." said Chung H. Youk, president and chief executive officer.
Net interest income before provision for loan losses was $4.9 million in the first quarter of 2009 compared with $7.1 million in the same period a year ago. Net interest margin for the first quarter of 2009 was 2.52 percent compared with 3.64 percent in the first quarter a year earlier. Net interest margin was adversely affected by the Federal Reserve's decision to aggressively lower the Federal Funds Rate during 2008 and the increase in non-accrual loans in the first quarter of 2009.
Noninterest income in the first quarter of 2009 totaled $424,000, compared with $1.4 million a year ago. The reduction was primarily attributable to the loss on the sale/write-down of OREO of $790,000 and a $198,000 reduction in gain on sale of SBA loans, partially offset by a $56,000 increase in service charges on deposit accounts. Gain on sale of loans declined substantially as a result of significantly lower SBA market activity and reduced sales premiums paid on SBA loans sold to the secondary market.
Noninterest expense for the first quarter of 2009 was $5.2 million, a decrease of $726,000 from the first quarter last year. The decrease in noninterest expense for the first quarter of 2009 was primarily attributable to lower employee compensation expense, partially offset by higher occupancy and equipment expenses. The efficiency ratio for the first quarter of 2009 was 98.2 percent compared with 69.8 percent in the first quarter of 2008.
Nonperforming loans were $55.1 million at March 31, 2009 -- up $39.5 million from $15.6 million at March 31, 2008. Nonperforming loans and OREO represented 6.53 percent of total assets at March 31, 2009. The provision for loan losses was $230,000 for the first quarter of 2009 compared with $1.1 million a year ago.
Total assets were $913.3 million as of March 31, 2009 -- representing an increase of $52.0 million, or 6.03 percent, over the $861.3 million in total assets reported on March 31, 2008. Total deposits as of March 31, 2009 increased $87.0 million, or 13.1 percent, to $749.4 million from $662.4 million as of March 31, 2008.
Shareholders' equity increased to $63.0 million at March 31, 2009 from $62.6 million at March 31, 2008. Shareholders' equity primarily increased as a result of a private placement in November 2008, partially offset by net losses in recent quarters. Capital ratios continue to be well above the "Well-Capitalized" guidelines established by the regulatory agencies. The Leverage Ratio was 10.22 percent, the Tier 1 Risk-based Capital Ratio was 10.86 percent and the Total Risk-based Capital Ratio was 12.13 percent.
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)
March 31
2009 2008
Assets:
Cash & due from banks - demand 18,624 20,594
Due from banks-interest bearing 112,930 1,022
Federal fund sold 5,790 43,745
Securities available-for-sale 40,686 47,897
Loans 717,480 728,568
Less: Allowance for loan losses 21,441 8,311
Net loans 696,039 720,257
Loans held for sale - 3,208
Bank premises and equipment, net 5,748 7,086
Other assets 33,442 17,472
Total assets 913,259 861,281
Liabilities and stockholders' equity:
Deposits:
Noninterest bearing demand 121,944 130,756
Interest bearing demand and savings 133,397 155,754
Time deposits 494,093 375,897
Total deposits 749,434 662,407
Jr. Subordinated debenture 20,619 20,619
Other borrowed money 75,000 110,280
Other liabilities 5,158 5,389
Total liabilities 850,211 798,695
Total stockholders' equity 63,048 62,586
Total liabilities and
stockholders' equity 913,259 861,281
Book value per share 3.90 5.19
Period end shares outstanding 16,032,429 12,053,596
Nonperforming loans 55,152 15,642
Tier I leverage ratio 10.22 % 10.31 %
Tier 1 risk-based capital ratio 10.86 % 10.63 %
Total risk-based capital ratio 12.13 % 11.75 %
Saehan Bancorp
Condensed Income Statement and Comprehensive Income
(Dollars in thousands except per share data)
For the three
months ended
March 31
2009 2008
Interest income:
Interest and fees on loans 9,593 13,441
Interest on securities 424 526
Interest on federal funds sold 3 92
Other interest income 5 101
Total interest income 10,025 14,160
Interest expense:
Deposit 4,023 5,736
Other 1,094 1,292
Total interest expenses 5,117 7,028
Net interest income before
provision for loan losses 4,908 7,132
Provision for loan losses 230 1,081
Non-interest income:
Service charges on deposit accounts 656 600
Gain (loss) on sale of loans (4 ) 194
Gain on sale of investment securities - -
Gain (loss) on sales of OREO (790 )
Other operating income 562 620
Total non-interest income 424 1,414
Non-interest expense:
Salaries and employee benefits 2,518 3,352
Net occupancy and equipment expense 1,259 1,152
Other operating expense 1,458 1,457
Total non-interest expenses 5,235 5,961
Income before income taxes (133 ) 1,504
Income taxes (60 ) 579
Income before extraordinary items (73 ) 925
Extraordinary items, net of taxes - -
Net income (73 ) 925
Net income per share -
Basic $ (0.005 ) $ 0.05
Diluted $ (0.005 ) $ 0.05
Basic average common shares
outstanding 16,032,429 12,053,596
Diluted average common shares
outstanding 16,032,429 12,066,052
Charge offs 1,983 1,044
Recoveries 1,037 25
For the three
months ended
March 31
2009 2008
Key Operating Ratios:
Return on average assets -0.04 % 0.46 %
Return on average equity -0.44 % 5.93 %
Yield on earning assets 5.14 % 7.24 %
Cost on interest bearing liabilities 2.85 % 4.53 %
Net interest margin 2.52 % 3.64 %
Cost of funds 2.45 % 3.80 %
Efficiency ratio 98.18 % 69.75 %
Source: Saehan Bancorp
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Saehan Bancorp
Daniel Kim
Senior Vice President & Chief Financial Officer
213-637-4802
or
Maier & Company
Inc.
Gary S. Maier
310-442-9852
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