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2013/11/08 Saehan Notice of Approval of Merger and Statutory Dissenters_ Rights
2013/11/05 Saehan Bancorp and Wilshire Bancorp Announce Shareholder Approval of Merger and Election Deadline
2013/07/16 Wilshire Saehan Investor Presentation
2013/07/15 Wilshire Bancorp Announces Acquisition of Saehan Bancorp
Wilshire Bancorp Announces Acquisition of Saehan Bancorp

LOS ANGELES, July 15, 2013 (GLOBE NEWSWIRE) -- Wilshire Bancorp, Inc. (WIBC), the parent company of Wilshire State Bank, and Saehan Bancorp (SAEB), the parent company of Saehan Bank, today jointly announced that Wilshire Bancorp has agreed to acquire Saehan Bancorp at the price of $0.42 per share which is valued at approximately $105.5 million, based on Wilshire's most recent closing price. The combined company will have approximately $3.5 billion in assets with 35 branches.

"Saehan Bank has been a respected competitor for years and we believe their operations will add significant value to the Wilshire State Bank franchise," said Jae Whan Yoo, President and Chief Executive Officer of Wilshire Bancorp and Wilshire State Bank. "Saehan Bank has a very loyal and attractive customer base that we believe will enjoy the expanded product and service offerings, greater lending limits, and increased convenience that Wilshire State Bank can offer. With significant overlap in our operations, we believe that we will have a high level of cost savings opportunities that will enhance the combined bank's earnings power. In addition, we think there are good opportunities to restructure Saehan Bank's balance sheet to enhance the amount of net interest income generated from their operations. As we indicated entering 2013, we were focused on deploying our excess capital in ways that will enhance shareholder value. With our pending acquisitions of BankAsiana in the New York/New Jersey market and Saehan Bancorp in Los Angeles, we believe we have prudently deployed excess capital to expand our franchise and increase our earnings power going forward."

"Wilshire Bancorp is a great fit for Saehan Bancorp, with a similar corporate culture and commitment to serving the Korean-American community in Los Angeles," said Dong Il Kim, President and Chief Executive Officer of Saehan Bancorp. "We appreciate the loyalty that our customers have shown to Saehan and we look forward to continuing to serve their financial needs as part of Wilshire Bancorp. We are pleased to find a partner that will reward our shareholders, while also having the ability to integrate our operations smoothly and ensure that our customers continue to receive a superior level of service."

The agreement was unanimously approved by the Board of Directors of each company. In addition, shareholders of Saehan Bancorp owning or controlling approximately 51% in the aggregate of the current outstanding shares of Saehan Bancorp have entered into voting and support agreements requiring them, subject to the terms and conditions thereof, to vote in favor of the merger. A two-thirds vote of the outstanding shares of Saehan common stock is necessary for shareholder approval of the merger.

Excluding transaction costs, the merger is expected to be immediately accretive to Wilshire Bancorp's earnings per share in the first year, with double digit accretion in subsequent years, and an internal rate of return in excess of 20%. Anticipated gross synergies are expected to be approximately $12.3 million, with 75% being realized in 2014 and 100% being realized thereafter. The transaction is expected to be completed by the end of this year, after the fulfillment of certain customary conditions to closing, including the approval of the shareholders of Saehan Bancorp and receipt of necessary regulatory approvals.

Under the terms of the merger agreement each Saehan Bancorp share will be converted to a right to receive, subject to allocation procedures and certain limitations, either (i) 0.06080 shares of Wilshire Bancorp common stock or (ii) $0.4247 in cash or (iii) a unit consisting of Wilshire Bancorp common stock and cash. Saehan Bancorp shareholders will receive a fixed amount of cash totaling approximately $50.4 million and a fixed amount of Wilshire Bancorp common stock totaling approximately 7.2 million shares. The actual value received by Saehan Bancorp shareholders on a per share basis for those receiving Wilshire common stock will fluctuate based on Wilshire Bancorp's stock price.

Wilshire was advised in this transaction by Macquarie Capital, as financial advisor, and Hunton & Williams LLP, as legal counsel. Saehan was advised by B. Riley & Co., as financial advisor, and King, Holmes, Paterno & Berliner, as legal counsel.

Additional Financial Information

  • As of March 31, 2013, Saehan Bancorp had total assets of $542.3 million, total net loans of $365.4 million, and total deposits of $458.3 million.
  • On a proforma basis, including the pending acquisitions of BankAsiana and Saehan Bancorp, as of March 31, 2013, Wilshire Bancorp would have approximately $3.5 billion in total assets, $2.7 billion in net loans, and $2.8 billion in total deposits
  • An investor presentation for this transaction can be accessed on the websites for Wilshire Bancorp and Saehan Bancorp at www.wilshirebank.com and www.saehanbank.com, within the investor relations sections of each website.

ABOUT WILSHIRE BANCORP

Headquartered in Los Angeles, Wilshire State Bank operates 25 branch offices in California, Texas, New Jersey and New York, and eight loan production offices in Dallas and Houston, TX, Atlanta, GA, Aurora, CO, Annandale, VA, Fort Lee, NJ, Newark, CA, and Bellevue, WA, and is an SBA preferred lender nationwide. Wilshire State Bank is a community bank with a focus on commercial real estate lending and general commercial banking, with its primary market encompassing the multi-ethnic populations of the Los Angeles Metropolitan area. For more information, please go to www.wilshirebank.com.

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 United States. Saehan Bancorp is committed to satisfying customers and creating shareholder value. Its ten retail branch offices, International Department and SBA Department focus on fulfilling these commitments to customers and shareholders.

FORWARD-LOOKING STATEMENTS

Statements concerning future performance, events, or any other guidance on future periods constitute forward-looking statements that are subject to a number of risks and uncertainties that might cause actual results to differ materially from stated expectations. Such forward-looking statements include, but are not limited to, statements about the benefits of the proposed transaction involving Wilshire and Saehan including future financial and operating results, Wilshire's or Saehan's plans, objectives, expectations and intentions, the expected timing of completion of the transaction, and other statements that are not historical facts. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include risks and uncertainties relating to: (i) the ability to obtain the requisite Saehan shareholder approvals; (ii) the risk that Wilshire or Saehan may be unable to obtain governmental and regulatory approvals required for the transaction, or required governmental and regulatory approvals may delay the transaction or result in the imposition of conditions that could cause the parties to abandon the transaction; (iii) the risk that a condition to closing of the transaction may not be satisfied; (iv) the timing to consummate the proposed transaction; (v) the risk that the businesses will not be integrated successfully; (vi) the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; (vii) disruption from the transaction making it more difficult to maintain relationships with customers, employees or vendors; (viii) the diversion of management time on transaction-related issues; (ix) general worldwide economic conditions and related uncertainties; (x) the effect of changes in governmental regulations; (xi) credit risk associated with an obligor's failure to meet the terms of any contract with the bank or to otherwise perform as agreed; (xii) interest risk involving the effect of a change in interest rates on both the bank's earnings and the market value of the portfolio equity; (xiii) liquidity risk affecting the bank's ability to meet its obligations when they come due; (xiv) price risk focusing on changes in market factors that may affect the value of traded instruments in "mark-to-market" portfolios; (xv) transaction risk arising from problems with service or product delivery; (xvi) compliance risk involving risk to earnings or capital resulting from violations of or nonconformance with laws, rules, regulations, prescribed practices, or ethical standards; (xvii) strategic risk resulting from adverse business decisions or improper implementation of business decisions; (xviii) reputation risk that adversely affects earnings or capital arising from negative public opinion; (xix) terrorist activities risk that results in loss of consumer confidence and economic disruptions; (xx) economic downturn risk resulting in deterioration in the credit markets; (xxi) greater than expected noninterest expenses; (xxii) excessive loan losses; and (xxiii) other factors we discuss or refer to in the "Risk Factors" section of our most recent Annual Report on Form 10-K filed with the SEC. Additional risks and uncertainties are identified and discussed in Wilshire's reports filed with the SEC and available at the SEC's website at www.sec.gov. Each forward-looking statement speaks only as of the date of the particular statement and Wilshire undertakes no obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

ADDITIONAL INFORMATION ABOUT THE PROPOSED MERGER AND WHERE TO FIND IT

This communication relates to a proposed merger between Wilshire and Saehan that will become the subject of a registration statement, which will include a proxy statement/prospectus, to be filed with the SEC that will provide full details of the proposed merger and the attendant benefits and risks. This communication is not a substitute for the proxy statement/prospectus or any other document that Wilshire or Saehan may file with the SEC or send to their shareholders in connection with the proposed merger. Investors and security holders are urged to read the registration statement on Form S-4, including the definitive proxy statement/prospectus, and all other relevant documents filed with the SEC or sent to shareholders as they become available because they will contain important information about the proposed merger. All documents, when filed, will be available free of charge at the SEC's website (www.sec.gov). You may also obtain these documents by contacting Wilshire's Corporate Secretary, at Wilshire Bancorp, Inc., 3200 Wilshire Boulevard, Los Angeles, California 90010, or via e-mail at alexko@wilshirebank.com. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.

PARTICIPANTS IN THE SOLICITATION

Wilshire, Saehan and their respective directors and executive officers may be deemed to be participants in any solicitation of proxies in connection with the proposed mergers. Information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the merger when they become available. Investors should read the proxy statement/prospectus carefully when it becomes available before making any voting or investment decisions.

 

Contact:

 
For Wilshire Bancorp:
Alex Ko, EVP & CFO
(213) 427-6560
For Saehan Bancorp:
Daniel Kim, EVP & CFO
(213) 637-4802
 
 
2011/11/15 Saehan Bancorp Reports Third Quarter Results
Saehan Bancorp Reports Third Quarter Results

LOS ANGELES--(BUSINESS WIRE)-- Saehan Bancorp (OTCBB:SAEB.OB - News) today reported results for its third quarter ended September 30, 2011, reflecting continued profitability and success in its turnaround strategy.

The company reported net income of $720,000, or $0.004 per share, for the third quarter of 2011 compared with a net loss of $2.6 million, or $0.01 per share, a year ago. The return on average equity for the third quarter of 2011 was 6.28 percent and the return on average assets was 0.52 percent compared with -18.43 percent and -1.55 percent, respectively, for the third quarter of 2010.

For the nine-month period, Saehan reported net income of $1.9 million, or $0.010 per share for the nine months ended September 30, 2011 compared a net loss of $11.7 million, or $0.09 per share for the same period a year ago.

Other highlights for the third quarter of 2011 included:

  • Total assets were $563.6 million compared with $674.8 million in the same period a year ago.
  • Net loans decreased $101.6 million from the same period a year ago.
  • Total deposits were $475.6 million compared with $567.3 million a year earlier.
  • Net interest margin was 3.29 percent compared with 2.79 percent for the third quarter of 2010.
  • An improved efficiency ratio of 90.2 percent, compared with 122.3 percent for the third quarter a year earlier.
  • The ratio of nonperforming loans to total loans was 5.2 percent compared with 9.9 percent at September 30, 2010.
  • Noninterest income excluding gain or loss on sale of OREO was $1.6 million compared with $1.1 million for the third quarter of 2010.
  • Noninterest expense was $5.6 million compared with $6.6 million for the third quarter of 2010.

“Results for the third quarter reflect management’s continued focus on reducing problem assets, controlling overhead expense and cost of funds. This represents the third consecutive quarter of profitability and we look forward to continued improvements,” said Dong Il Kim, president and chief executive officer.

Net interest income before provision for loan losses was $4.5 million in the third quarter of 2011 compared with $4.7 million in the same period a year ago. Net interest margin for the third quarter of 2011 was 3.29 percent compared with 2.79 percent in the third quarter a year earlier. Yield on earning assets for the third quarter of 2011 was 4.50 percent compared with 4.51 percent for the third quarter of 2010. Cost of funds for the third quarter of 2011 was 1.43 percent compared with 1.98 percent for the third quarter of 2010. The reduction in cost of funds was attributable to the $100 million decrease in high cost brokered deposits.

Noninterest income excluding gain or loss on sale of OREOs in the third quarter of 2011 totaled $1.6 million compared with $1.1 million a year ago. The increase was primarily attributable to a $624,000 gain on the sale of SBA loans in the third quarter of 2011.

Noninterest expense for the third quarter of 2011 was $5.6 million compared with $6.6 million for the third quarter of 2010. The efficiency ratio for the third quarter of 2011 was 90.2 percent compared with 122.3 percent in the third quarter of 2010.

Nonperforming loans were $20.5 million at September 30, 2011 -- down $29.3 million from $49.8 million at September 30, 2010. Nonperforming loans and OREO represented 4.5 percent of total assets at September 30, 2011 compared with 9.6% at September 30, 2010.

Total assets were $563.6 million as of September 30, 2011 -- representing a decrease of $111.2 million, or 16.4 percent, from the $674.8 million in total assets reported on September 30, 2010. Total deposits as of September 30, 2011 decreased $91.7 million, or 16.2 percent, to $475.6 million from $567.3 million as of September 30, 2010. Management has intentionally reduced the amount of total assets and brokered deposits in order to improve the bank’s Tier One Leverage Ratio while maintaining an adequate amount of liquidity.

Shareholders’ equity was $58.5 million at September 30, 2011 compared with $55.2 million at September 30, 2010. Shareholders’ equity primarily increased as a result of the $12.0 million common stock equity raised in a private placement on September 30, 2011. The Leverage Ratio, Tier 1 Risk-based Capital Ratio and Total Risk-based Capital Ratio at September 30, 2011 were 13.9 percent, 19.5 percent and 21.0 percent, respectively, compared with 10.6 percent, 13.7 percent and 15.4 percent, respectively, at September 30, 2010.

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
2011 2010
Assets:
Cash & due from banks - demand 21,111 15,057
Due from banks-interest bearing 125,108 64,704
Federal fund sold 8,425 31,635
Securities available-for-sale 20,164 62,794
Loans 392,583 502,124
Less: Allowance for loan losses 22,259 30,239
Net loans 370,324 471,885
Loans held for sale 1,194 -
Bank premises and equipment, net 2,254 3,243
OREO and other investment in real estate 4,862 14,735
Other assets 10,122 10,706
Total assets 563,564 674,759
 
Liabilities and stockholders' equity:
Deposits:
Noninterest bearing demand 136,797 115,830
Interest bearing demand and savings 138,809 124,128
Time deposits 199,991 327,363
Total deposits 475,597 567,321
Other liabilities 29,418 52,273
Total liabilities 505,015 619,594
Total stockholders' equity 58,549 55,165
Total liabilities and stockholders' equity
563,564 674,759
Book value per share 0.25 0.29
Period end shares outstanding 237,197,874 189,097,874
Nonperforming loans 20,493 49,759
 
Tier I leverage 13.93% 10.63%
Tier I risk-based capital 19.51% 13.73%
Total risk-based capital
20.97% 15.41%
 
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
  2011     2010     2011     2010  
Interest income:
Interest and fees on loans 5,867 7,117 18,419 22,180
Interest on securities 164 484 637 1,116
Interest on federal funds sold 36 40 89 72
Other interest income 72 35 212 77
Total interest income 6,139 7,676 19,357 23,445
Interest expense:
Deposit 1,492 2,467 5,412 7,424
Other 160 473 1,270 1,500
Total interest expenses 1,652 2,940 6,682 8,924
Net interest income before provision for loan losses
4,487
 
4,736 12,675 14,521
Provision for loan losses
- 1,478 - 6,495
Non-interest income:
Service charges on deposit accounts 481 515 1,474 1,521
Gain on sale of loans 624 - 2,532 -
Gain on sale of investment securities - 5 3 51
Gain (loss) on sales of OREO 163 (511 ) 563 (4,065 )
Other operating income 493 614 1,404 1,711
Total non-interest income 1,761 623 5,976 (782 )
Non-interest expense:
Salaries and employee benefits 2,191 2,174 6,628 6,363
Net occupancy and equipment expense 1,066 1,213 3,446 3,699
Other operating expense 2,381 3,169 6,773 8,713
Total non-interest expenses 5,638 6,556 16,847 18,775
Income before income taxes 610 (2,675 ) 1,804 (11,531 )
Income taxes (110 ) (38 ) (109 ) 147
Income before extraordinary items
720 (2,637 ) 1,913 (11,678 )
Extraordinary items, net of taxes
Net income 720 (2,637 ) 1,913 (11,678 )
Net income per share -
Basic $ 0.004 $ (0.01 ) $ 0.010 $ (0.09 )
Diluted $ 0.004 $ (0.01 ) $ 0.010 $ (0.09 )
 
Basic average common shares outstanding
189,620,700 189,097,874 189,274,064 132,677,271
Diluted average common shares outstanding
189,620,700 189,097,874 189,274,064 132,677,271
 
Charge offs 1,063 2,621 8,931 19,586
Recoveries 382 232 5,005 1,293
 
For the three For the nine
months ended months ended
30-Sep 30-Sep
  2011     2010     2011     2010  
Key Operating Ratios:
Return on average assets 0.52 % -1.55 % 0.45 % -2.27 %
Return on average equity 6.28 % -18.43 % 5.62 % -33.37 %
Yield on earning assets 4.50 % 4.51 % 4.79 % 4.61 %
Cost on interest bearing liabilities 1.43 % 1.98 % 1.82 % 2.45 %
Net interest margin 3.29 % 2.79 % 3.13 % 2.86 %
Cost of funds 1.30 % 1.91 % 1.72 % 1.95 %
Efficiency ratio 90.24 % 122.34 % 90.33 % 136.65 %
Average stockholders' equity to average total assets
8.24 % 8.42 % 7.99 % 6.79 %
 

Contact:

 
Saehan Bancorp
Daniel Kim
Senior Vice President & Chief Financial Officer
213-637-4802
or
Maier & Company, Inc.
Gary S. Maier, 310-442-9852
 
 
2011/04/12 Saehan Bancorp Announces Appointment of Dong Il Kim as President and Chief Executive Officer of Saehan Bank
Saehan Bancorp Announces Appointment of Dong Il Kim as President and Chief Executive Officer of Saehan Bank

LOS ANGELES--(BUSINESS WIRE)-- Saehan Bancorp (OTCBB:SAEB.ob - News) today announced that Saehan Bank received regulatory non-disapproval to appoint Dong Il Kim as president and chief executive officer of Saehan Bank.

A leader in the Korean-American business community for more than 25 years, Mr. Kim most recently served as president and chief executive officer of U.S. Metro Bank. His banking career includes serving as senior vice president and chief credit officer of Hanmi Bank from 2004 to 2005 and senior vice president and chief credit officer of Pacific Union Bank from 2000 to 2004. He earned a Bachelor of Arts degree from Pusan National University in Korea. Kim subsequently earned a Masters Degree in Economics from California State University, Los Angeles, and State University of New York at Stony Brook.

“Dong Il Kim’s accomplishments, banking experience and solid reputation in the Korean-American banking community were important considerations in his selection and we look forward to his new leadership and contributions to Saehan Bank,” said Dong Soo Han, chairman of Saehan Bank.

 

Contact:

 
Saehan Bancorp
Daniel Kim
Senior Vice President & Chief Financial Officer
213-637-4802
or
Maier & Company, Inc.
Gary S. Maier, 310-442-9852
 
 
2010/11/16 Saehan Bancorp Reports Third Quarter Results
SAEHAN BANCORP REPORTS Third QUARTER RESULTS

LOS ANGELES--(BUSINESS WIRE)-- Saehan Bancorp (OTCBB:SAEB.ob - News) today announced financial results for its third quarter ended September 30, 2010, reflecting a decreased net loss and the continued impact of current economic conditions.

The company reported a net loss of $2.6 million, or $0.01 per share for the third quarter of 2010 compared with net loss of $7.5 million, or $0.47 per diluted share, in the same period a year ago. The return on average equity for the third quarter of 2010 was -18.4 percent and the return on average assets was -1.55 percent compared with -72.7 percent and -3.26 percent, respectively, for the same period a year earlier.

Additional highlights for the third quarter of 2010 include:

  • Total assets at September 30, 2010 were $674.8 million compared with $830.1 million a year ago.
  • Net loans at September 30, 2010 were $471.9 million compared with $566.9 million last year.
  • Total deposits at September 30, 2010 were $567.3 million compared with $711.9 million at September 30, 2009.
  • Net interest margin for the third quarter of 2010 increased to 2.79 percent from the 1.57 percent reported in the third quarter of 2009.
  • Efficiency for the third quarter of 2010 was 122.3 percent compared with 106.0 percent in the third quarter of 2009.
  • Nonperforming loans at September 30, 2010 decreased to $49.8 million from $55.9 million at September 30, 2009.
  • Allowance for loan losses was 6.0 percent of total loans at September 30, 2010 compared to 7.1 percent at September 30, 2009.

Net interest income before provision for loan losses was $4.7 million in the third quarter of 2010 compared with $3.5 million in the third quarter of 2009. For the third quarter of 2010, net interest margin was 2.79 percent compared with 1.57 percent in the third quarter of 2009. Net interest margin improved as a result of reducing high cost deposits, improving the deposit mix, and reducing the non-performing loans. Cost of funds and yield on earnings assets for the third quarter of 2010 were 1.91 percent and 4.51 percent, respectively, compared with 2.31 percent and 4.09 percent, respectively, for the third quarter of 2009.

Noninterest income, excluding loss on sale of OREOs in the third quarter of 2010, totaled $1.1 million compared with $2.3 million in the third quarter of 2009. Noninterest income in the third quarter of 2009 included a $1.0 million gain from the sale of bank owned property.

Noninterest expense for the third quarter of 2010 was $6.6 million, an increase of $364,000 from the third quarter of 2009. The efficiency ratio for the third quarter of 2010 was 122.3 percent compared with 106.0 percent in the third quarter of 2009.

Nonperforming loans and OREOs were $64.5 million at September 30, 2010, compared with $68.3 million at September 30, 2009. Nonperforming assets represented 9.6 percent of total assets at September 30, 2010.

Shareholders’ equity was $55.2 million at September 30, 2010 compared with $33.4 million at September, 2009. Shareholders’ equity primarily decreased as a result of net losses incurred in the last four quarters, partially offset by the $60.6 million common stock equity raised in a private placement on March 9, 2010. Capital ratios remained well above the “Well-Capitalized” guidelines established by the regulatory agencies. The Leverage Ratio, Tier 1 Risk-based Capital Ratio and Total Risk-based Capital Ratio at September 30, 2010 were 10.6 percent, 13.7 percent and 15.4 percent, respectively, compared with 2.6 percent, 3.5 percent and 4.8 percent, respectively at September 30, 2009.

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 the Korean-American community in Los Angeles. 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
2010 2009
Assets:
Cash & due from banks - demand 15,057 13,915
Due from banks-interest bearing 64,704 108,047
Federal fund sold 31,635 5,082
Securities available-for-sale 62,794 75,617
Loans 502,124 610,051
Less: Allowance for loan losses 30,239 43,166
Net loans 471,885 566,885
Loans held for sale - 999
Bank premises and equipment, net 3,243 4,638
OREO and other investment in real estate 14,735 12,360
Other assets 10,706 42,504
Total assets 674,759 830,050
 
Liabilities and stockholders' equity:
Deposits:
Noninterest bearing demand 115,830 130,842
Interest bearing demand and savings 124,128 125,415
Time deposits 327,363 455,684
Total deposits 567,321 711,941
Other liabilities 52,273 84,684
Total liabilities 619,594 796,625
Total stockholders' equity 55,165 33,425
Total liabilities and stockholders' equity
674,759 830,050
Book value per share
0.29 2.08
Period end shares outstanding 189,097,874 16,032,429
Nonperforming loans 49,759 55,917
 
Tier I leverage 10.63 % 2.56 %
Tier I risk-based capital
13.73 % 3.49 %
Total risk-based capital
15.41 % 4.81 %
 
             
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
  2010     2009     2010     2009  
Interest income:
Interest and fees on loans 7,117 8,552 22,180 27,240
Interest on securities 484 365 1,116 1,201
Interest on federal funds sold 40 36 72 54
Other interest income 35 197 77 355
Total interest income 7,676 9,150 23,445 28,850
Interest expense:
Deposit 2,467 4,635 7,424 13,971
Other 473 993 1,500 3,178
Total interest expenses 2,940 5,628 8,924 17,149
Net interest income before provision for loan losses
4,736
 
3,522 14,521 11,701
Provision for loan losses
1,478 12,380 6,495 47,506
Non-interest income:
Service charges on deposit accounts 515 570 1,521 1,871
Gain on sale of loans - 173 - 272
Gain on sale of investment securities 5 14 51 24
Gain (loss) on sales of OREO (511 ) 24 (4,065 ) (1,956 )
Other operating income 614 1,537 1,711 2,657
Total non-interest income 623 2,318 (782 ) 2,868
Non-interest expense:
Salaries and employee benefits 2,174 2,236 6,363 7,186
Net occupancy and equipment expense 1,213 1,282 3,699 3,789
Other operating expense 3,169 2,674 8,713 7,042
Total non-interest expenses 6,556 6,192 18,775 18,017
Income before income taxes (2,675 ) (12,732 ) (11,531 ) (50,954 )
Income taxes (38 ) (5,256 ) 147 (21,130 )
Income before extraordinary items
(2,637 ) (7,476 ) (11,678 ) (29,824 )
Extraordinary items, net of taxes
Net income (2,637 ) (7,476 ) (11,678 ) (29,824 )
Net income per share -
Basic $ (0.01 ) $ (0.47 ) $ (0.09 ) $ (1.86 )
Diluted $ (0.01 ) $ (0.47 ) $ (0.09 ) $ (1.86 )
 
Basic average common shares outstanding
189,097,874 16,032,429 132,677,271 16,032,429
Diluted average common shares outstanding
189,097,874 16,035,637 132,677,271 16,035,433
 
Charge offs 2,621 12,154 19,586 27,828
Recoveries 232 218 1,293 1,331
 
For the three For the nine
months ended months ended
30-Sep 30-Sep
  2010     2009     2010     2009  
Key Operating Ratios:
Return on average assets -1.55 % -3.26 % -2.27 % -4.43 %
Return on average equity -18.43 % -72.74 % -33.37 % -70.06 %
Yield on earning assets 4.51 % 4.09 % 4.61 % 4.41 %
Cost on interest bearing liabilities 1.98 % 2.68 % 2.45 % 3.21 %
Net interest margin 2.79 % 1.57 % 2.86 % 1.79 %
Cost of funds 1.91 % 2.31 % 1.95 % 2.74 %
Efficiency ratio 122.34 % 106.03 % 136.65 % 123.67 %
Average stockholders' equity to average total assets
8.42 % 4.48 % 6.79 % 6.33 %
 

Contact:

 
Saehan Bancorp
Daniel Kim
Senior Vice President & Chief Financial Officer
213-637-4802
or
Maier & Company, Inc.
Gary S. Maier, 310-442-9852
 
 
2010/10/27 Saehan Bancorp Announces Appointment of Dong Il Kim as President and Chief Executive Officer
Saehan Bancorp Announces Appointment of Dong Il Kim as President and Chief Executive Officer

LOS ANGELES--(BUSINESS WIRE)--Saehan Bancorp (OTCBB:SAEB - News) today announced the appointment of Dong Il Kim as president and chief executive officer of Saehan Bank, subject to regulatory non-disapproval. Mr. Dong Il Kim will be succeeding Chung H. Youk who resigned as of effective October 22, 2010.

 

Contact:

 
Saehan Bancorp
Daniel Kim
Senior Vice President & Chief Financial Officer
213-637-4802
or
Maier & Company, Inc.
Gary S. Maier, 310-442-9852
 
 
2010/10/06 Saehan CEO Chung H. Youk Resigns
Saehan CEO Chung H. Youk Resigns

LOS ANGELES--(BUSINESS WIRE)--Saehan Bancorp (OTCBB:SAEB - News) parent company of Saehan Bank, announced today that Chung Hoon Youk has submitted his resignation as President and Chief Executive Officer and as a director from the Board of Directors of Saehan Bank and Saehan Bancorp effective as of October 22, 2010. Mr. Youk is resigning for personal reasons to pursue other interests.

The Board of Directors has immediately commenced search efforts to identify a qualified CEO candidate to replace Mr. Youk. Until such time as a permanent CEO is selected and approved by regulators, Daniel H. Kim, the Bank’s Executive Vice President and Chief Financial Officer, will assume the duties and title of acting President.

Dr. Dong Soo Han, chairman of Saehan Bank, stated that, “Mr. Youk contributed significantly to the recent capital raise and restoring the Bank’s regulatory capital ratios to adequate levels. We are proud of these accomplishments and we wish Mr. Youk well in the future.” Dr. Han added that “The board of directors is moving promptly in its search for a candidate to assume the position of president and chief executive officer. The board expects to be in a position to make an announcement on this matter in the near future.”

 

Contact:

 
Saehan Bancorp
Daniel Kim
Senior Vice President & Chief Financial Officer
213-637-4802
or
Maier & Company, Inc.
Gary S. Maier, 310-442-9852
 
 
2010/08/12 Saehan Bancorp Reports Second Quarter Results
SAEHAN BANCORP REPORTS SECOND QUARTER RESULTS

LOS ANGELES--(BUSINESS WIRE)--Saehan Bancorp (OTCBB:SAEB - News) today announced financial results for its second quarter ended June 30, 2010, reflecting a sharp reduction in net loss, net interest margin gains and asset quality improvements.

The company reported a net loss of $3.1 million, or $0.02 per share for the second quarter of 2010 compared with net loss of $22.3 million, or $1.39 per diluted share, in the same period a year ago. The return on average equity for the second quarter of 2010 was -20.7 percent and the return on average assets was -1.91 percent compared with -142.3 percent and -9.26 percent, respectively, for the second quarter of 2010.

Additional highlights for the second quarter of 2010 include:

  • Total assets at June 30, 2010 were $677.4 million compared with $949.1 million a year ago -- increasing $27.2 million, or 4.2 percent, from $650.2 million at March 31, 2010.
  • Net loans were $487.1 million at June 30, 2010 compared with $622.0 million in the same period a year ago, and decreased $23.0 million from $510.1 million at March 31, 2010.
  • Total deposits at June 30, 2010 were $562.7 million compared with $805.3 million at June 30, 2009 -- increasing $32.3 million, or 6.1 percent, from $530.4 million at March 31, 2010.
  • Net interest margin for the second quarter of 2010 increased to 3.13 percent from the 1.40 percent reported in the second quarter of 2009 and 2.94 percent in the first quarter of 2010.
  • Efficiency for the second quarter of 2010 was 173.4 percent compared with 194.0 percent in the second quarter of 2009 and 120.5 percent in the first quarter of 2010.
  • Nonperforming loans at June 30, 2010 decreased to $43.3 million from $58.4 million at June 30, 2009 and from $46.7 million at March 31, 2010.
  • Allowance for loan losses was 6.0 percent of total loans at June 30, 2010 compared with 6.4 percent at June 30, 2009 and 6.7 percent at March 31, 2010.

“We made significant progress in our efforts to improve earnings and asset quality since successfully raising additional capital of $60.6 million in March. -- which restored the bank’s capital ratios well above acceptable levels. In addition, our net interest margin improved 172 basis points in the second quarter compared with the same period last year, and nonperforming assets continued to decline. We are in the process of implementing various cost saving measures to further improve operating results," said Chung Hoon Youk, president and chief executive officer.

Net interest income before provision for loan losses was $5.1 million in the second quarter of 2010 compared with $3.3 million in the second quarter of 2009. For the second quarter of 2010, net interest margin was 3.13 percent compared with 1.40 percent in the second quarter of 2009. Net interest margin improved as a result of reducing high-cost deposits, improving the deposit mix, reducing non-performing loans and reducing overnight fed funds by purchasing higher yield investment securities. Cost of funds and the yield on earnings assets for the second quarter of 2010 were 1.71 percent and 4.91 percent, respectively, compared with 2.81 percent and 4.16 percent, respectively, for the second quarter of 2009.

Noninterest income, excluding a loss on sale of OREOs in the second quarter of 2010 totaled $1.1 million compared with $1.3 million in the second quarter of 2009. The decrease in noninterest income is primarily attributable to the $171,000 decrease in service charges on deposit accounts.

Noninterest expense for the second quarter of 2010 was $7.0 million, an increase of $369,000 from the second quarter of 2009. The increase in noninterest expense is primarily attributable to a $1.7 million reserve set aside for a potential legal settlement with the SBA Department and legal fees, partially offset by lower employee salaries due to a reduction in the bank’s workforce.

The efficiency ratio for the second quarter of 2010 was 173.4 percent compared with 194.0 percent in the second quarter of 2009.

Nonperforming loans and OREO were $53.3 million at June 30, 2010, compared with $66.9 million at June 30, 2009. Nonperforming assets represented 7.9 percent of total assets at June 30, 2010.

Shareholders’ equity was $57.8 million at June 30, 2010 compared with $40.7 million at June, 2009. Shareholders’ equity primarily decreased as a result of net losses incurred in the last four quarters, partially offset by the $60.6 million common stock equity raised in a private placement on March 9, 2010. Capital ratios remained well above the “Well-Capitalized” guidelines established by the regulatory agencies. The Leverage Ratio, Tier 1 Risk-based Capital Ratio and Total Risk-based Capital Ratio at June 30, 2010 were 11.6 percent, 13.8 percent and 15.1 percent, respectively, compared with 4.1 percent, 5.4 percent and 7.6 percent, respectively at June 30, 2009.

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 the Korean-American community in Los Angeles. 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-Jun
2010 2009
Assets:
Cash & due from banks - demand 12,377 16,013
Due from banks-interest bearing 30,856 150,885
Federal fund sold 28,550 10,363
Securities available-for-sale 80,549 86,168
Loans 518,270 664,693
Less: Allowance for loan losses 31,150 42,722
Net loans 487,120 621,971
Loans held for sale - 7,268
Bank premises and equipment, net 3,496 5,370
Other assets 34,452 51,102
Total assets 677,400 949,141
Liabilities and stockholders' equity:
Deposits:
Noninterest bearing demand 121,932 127,649
Interest bearing demand and savings 108,156 150,670
Time deposits 332,599 526,991
Total deposits 562,687 805,310
Other liabilities 56,958 103,105
Total liabilities 619,645 908,415
Total stockholders' equity 57,755 40,726
Total liabilities and stockholders' equity 677,400 949,141
Book value per share 0.31 2.54
Period end shares outstanding 189,097,874 16,032,429
Nonperforming loans 43,274 58,360
Tier I leverage ratio 11.57 % 4.11 %
Tier 1 risk-based capital ratio 13.76 % 5.41 %
Total risk-based capital ratio 15.06 % 7.63 %
Saehan Bancorp
Condensed Income Statement and Comprehensive Income
(Dollars in thousands except per share data)
For the three For the six
months ended months ended
30-Jun 30-Jun
2010 2009 2010 2009
Interest income:
Interest and fees on loans 7,533 9,095 15,063 18,688
Interest on securities 450 412 632 836
Interest on federal funds sold 18 15 32 18
Other interest income 19 153 42 158
Total interest income 8,020 9,675 15,769 19,700
Interest expense:
Deposit 2,437 5,313 4,957 9,336
Other 478 1,091 1,027 2,185
Total interest expenses 2,915 6,404 5,984 11,521
Net interest income before provision for loan losses 5,105 3,271 9,785 8,179
Provision for loan losses - 34,896 5,017 35,126
Non-interest income:
Service charges on deposit accounts 474 645 1,006 1,301
Gain on sale of loans - 103 - 99
Gain on sale of investment securities 14 10 46 10
Gain (loss) on sales of OREO (2,180 ) (1,190 ) (3,554 ) (1,980 )
Other operating income 601 558 1,097 1,120
Total non-interest income (1,091 ) 126 (1,405 ) 550
Non-interest expense:
Salaries and employee benefits 2,098 2,432 4,189 4,950
Net occupancy and equipment expense 1,251 1,248 2,486 2,507
Other operating expense 3,610 2,910 5,544 4,368
Total non-interest expenses 6,959 6,590 12,219 11,825
Income before income taxes (2,945 ) (38,089 ) (8,856 ) (38,222 )
Income taxes 185 (15,814 ) 185 (15,874 )
Income before extraordinary items (3,130 ) (22,275 ) (9,041 ) (22,348 )
Extraordinary items, net of taxes - - - -
Net income (3,130 ) (22,275 ) (9,041 ) (22,348 )
Net income per share -
Basic $ (0.02 ) $ (1.39 ) $ (0.09 ) $ (1.39 )
Diluted $ (0.02 ) $ (1.39 ) $ (0.09 ) $ (1.39 )
Basic average common shares outstanding 189,097,874 16,032,429 103,999,396 16,032,429
Diluted average common shares outstanding 189,097,874 16,035,396 103,999,396 16,035,396
Charge offs 6,642 13,691 16,965 15,674
Recoveries 870 76 1,061 1,113
For the three For the six
months ended months ended
30-Jun 30-Jun
2010 2009 2010 2009
Key Operating Ratios:
Return on average assets -1.91 % -9.26 % -2.67 % -5.04 %
Return on average equity -20.69 % -142.26 % -43.78 % -69.04 %
Yield on earning assets 4.91 % 4.16 % 4.97 % 4.60 %
Cost on interest bearing liabilities 2.06 % 3.02 % 2.83 % 3.30 %
Net interest margin 3.13 % 1.40 % 3.09 % 1.91 %
Cost of funds 1.71 % 2.81 % 2.50 % 2.82 %
Efficiency ratio 173.37 % 193.99 % 145.81 % 135.47 %
Saehan Bancorp
Condensed Balance Sheet
(Dollars in thousands)
30-Jun
2010 2009
Assets:
Cash & due from banks - demand 12,377 16,013
Due from banks-interest bearing 30,856 150,885
Federal fund sold 28,550 10,363
Securities available-for-sale 80,549 86,168
Loans 518,270 664,693
Less: Allowance for loan losses 31,150 42,722
Net loans 487,120 621,971
Loans held for sale - 7,268
Bank premises and equipment, net 3,496 5,370
Other assets 34,452 51,102
Total assets 677,400 949,141
Liabilities and stockholders' equity:
Deposits:
Noninterest bearing demand 121,932 127,649
Interest bearing demand and savings 108,156 150,670
Time deposits 332,599 526,991
Total deposits 562,687 805,310
Other liabilities 56,958 103,105
Total liabilities 619,645 908,415
Total stockholders' equity 57,755 40,726
Total liabilities and stockholders' equity 677,400 949,141
Book value per share 0.31 2.54
Period end shares outstanding 189,097,874 16,032,429
Nonperforming loans 43,274 58,360
Tier I leverage ratio 11.57 % 4.11 %
Tier 1 risk-based capital ratio 13.76 % 5.41 %
Total risk-based capital ratio 15.06 % 7.63 %
 

Contact:

 
Saehan Bancorp
Daniel Kim
Senior Vice President & Chief Financial Officer
213-637-4802
or
Maier & Company, Inc.
Gary S. Maier, 310-442-9852
 
 
2010/05/11 Saehan Bancorp Reports First Quarter Results
SAEHAN BANCORP REPORTS FIRST QUARTER RESULTS

LOS ANGELES--(BUSINESS WIRE)--Saehan Bancorp (OTCBB:SAEB - News) today reported results for its first quarter ended March 31, 2010, 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 $5.9 million, or $0.10 per share for the first quarter of 2010 compared with a net loss of $73,000, or $0.01 per share, a year ago and a net loss of $23.9 million, or $1.49 per diluted share, in the fourth quarter of 2009. The return on average equity for the first quarter of 2010 was -107.7 percent and the return on average assets was -3.65 percent compared with -0.44 percent and -0.04 percent, respectively, for the first quarter of 2009.

Other highlights for the first quarter of 2010 included:

  • Total assets were $650.2 million compared with $913.3 million in the same period a year ago.
  • Net loans decreased $186.0 million from the same period a year ago.
  • Total deposits decreased $219.1 million, or 29.2 percent, from a year earlier.
  • Net interest margin was 2.94 percent, compared with 2.52 percent for the first quarter of 2009.
  • Efficiency ratio was 120.5 percent, compared 98.2 percent for the first quarter of 2009.
  • The ratio of nonperforming loans to total loans was 8.5 percent compared with 7.7 percent at March 31, 2009.
  • Noninterest income excluding loss on sale of OREOs was $1.1 million, compared with $1.2 million for the first quarter of 2009.
  • Noninterest expense was $5.3 million, compared with $5.2 million for the first quarter of 2009.

“Results for the first quarter reflect significant progress in restoring the bank’s financial position and returning our institution to profitability. The Company successfully raised $60.6 million of common stock equity in March and restored the capital ratios of its subsidiary bank to levels well above the minimum guidelines established by regulatory agencies to be “well-capitalized institutions” said Chung H. Youk, president and chief executive officer.

He noted that management is focused on identifying problem assets and restoring the bank’s financial health in order to capitalize on future opportunities as the economic environment begins to improve.

Net interest income before provision for loan losses was $4.7 million in the first quarter of 2010 compared with $4.9 million in the same period a year ago. Net interest margin for the first quarter of 2010 was 2.94 percent compared with 2.52 percent in the first quarter a year earlier. Net interest margin improved as a result of reducing high cost deposits and improving the deposit mix. Cost of funds for the first quarter of 2010 was 1.70 percent, compared with 2.45 percent for the first quarter of 2009.

Noninterest income excluding loss on sale of OREOs in the first quarter of 2010 totaled $1.1 million, compared with $1.2 million a year ago. The reduction was primarily attributable to the $124,000 reduction in service charges on deposit accounts.

Noninterest expense for the first quarter of 2010 was $5.3 million, compared with $5.2 million for the first quarter of 2009. The slight increase in noninterest expense for the first quarter of 2010 was primarily attributable to increase in legal expenses and deposit assessment fees, partially offset by lower salary and employee benefit expenses. The efficiency ratio for the first quarter of 2010 was 120.5 percent compared with 98.2 percent in the first quarter of 2009.

Nonperforming loans were $46.7 million at March 31, 2010 -- down $8.5 million from $55.2 million at March 31, 2009. Nonperforming loans and OREO represented 8.96 percent of total assets at March 31, 2010. The provision for loan losses was $5.0 million for the first quarter of 2010 compared with $230,000 a year ago.

Total assets were $650.2 million as of March 31, 2010 -- representing a decrease of $263.1 million, or 28.8 percent, over the $913.3 million in total assets reported on March 31, 2009. Total deposits as of March 31, 2010 decreased $219.1 million, or 29.2 percent, to $530.4 million from $749.4 million as of March 31, 2009. Youk noted that management has intentionally reduced the amount of total assets and deposits in order to improve the bank’s Tier One Leverage Ratio while maintaining an adequate amount of liquidity.

Shareholders’ equity was $60.3 million at March 31, 2010 compared with $63.0 million at March 31, 2009. Shareholders’ equity primarily decreased as a result of net losses incurred in the last four quarters, partially offset by the $60.6 million common stock equity raised in a private placement on March 9, 2010. Capital ratios remained to be well above the “Well-Capitalized” guidelines established by the regulatory agencies. The Leverage Ratio, Tier 1 Risk-based Capital Ratio and Total Risk-based Capital Ratio at March 31, 2010 were 12.3 percent, 14.1 percent and 15.4 percent, respectively, compared with 10.2 percent, 10.9 percent and 12.1 percent, respectively at March 31, 2009.

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
2010 2009
Assets:
Cash & due from banks - demand 11,331 18,624
Due from banks-interest bearing 35,502 112,930
Federal fund sold 16,085 5,790
Securities available-for-sale 35,717 40,686
Loans 546,993 717,480
Less: Allowance for loan losses 36,922 21,441
Net loans 510,071 696,039
Loans held for sale - -
Bank premises and equipment, net 3,879 5,748
Other assets 37,596 33,442
Total assets 650,181 913,259
Liabilities and stockholders' equity:
Deposits:
Noninterest bearing demand 115,709 121,944
Interest bearing demand and savings 52,566 133,397
Time deposits 362,103 494,093
Total deposits 530,378 749,434
Jr. Subordinated debenture 20,619 20,619
Other borrowed money 30,000 75,000
Other liabilities 8,850 5,158
Total liabilities 589,847 850,211
Total stockholders' equity 60,334 63,048
Total liabilities and stockholders' equity 650,181 913,259
Book value per share 0.31 3.90
Period end shares outstanding 189,097,874 16,032,429
Nonperforming loans 46,673 55,152
Tier I leverage ratio 12.32 % 10.22 %
Tier 1 risk-based capital ratio 14.06 % 10.86 %
Total risk-based capital ratio 15.38 % 12.13 %
Saehan Bancorp
Condensed Income Statement and Comprehensive Income
(Dollars in thousands except per share data)
For the three
months ended
March 31
2010 2009
Interest income:
Interest and fees on loans 7,530 9,593
Interest on securities 182 424
Interest on federal funds sold 14 3
Other interest income 23 5
Total interest income 7,749 10,025
Interest expense:
Deposit 2,520 4,023
Other 549 1,094
Total interest expenses 3,069 5,117
Net interest income before provision for loan losses 4,680 4,908
Provision for loan losses 5,017 230
Non-interest income:
Service charges on deposit accounts 532 656
Gain(loss) on sale of loans - (4 )
Gain on sale of investment securities 32 -
Gain (loss) on sales of OREO (1,374 ) (790 )
Other operating income 496 562
Total non-interest income (314 ) 424
Non-interest expense:
Salaries and employee benefits 2,091 2,518
Net occupancy and equipment expense 1,235 1,259
Other operating expense 1,934 1,458
Total non-interest expenses 5,260 5,235
Income before income taxes (5,911 ) (133 )
Income taxes - (60 )
Income before extraordinary items (5,911 ) (73 )
Extraordinary items, net of taxes - -
Net income (5,911 ) (73 )
Net income per share -
Basic $ (0.098 ) $ (0.005 )
Diluted $ (0.098 ) $ (0.005 )
Basic average common shares outstanding 60,260,265 16,032,429
Diluted average common shares outstanding 60,260,265 16,032,429
Charge offs 10,323 1,983
Recoveries 191 1,037
For the three
months ended
March 31
2010 2009
Key Operating Ratios:
Return on average assets -3.65 % -0.04 %
Return on average equity -107.72 % -0.44 %
Yield on earning assets 4.86 % 5.14 %
Cost on interest bearing liabilities 2.08 % 2.85 %
Net interest margin 2.94 % 2.52 %
Cost of funds 1.70 % 2.45 %
Efficiency ratio 120.48 % 98.18 %

Contact:
Saehan Bancorp
Daniel Kim
Senior Vice President & Chief Financial Officer
213-637-4802
or
Maier & Company, Inc.
Gary S. Maier, 310-442-9852
2010/03/09 Saehan Bancorp Announces Successful $60.6 Million Stock Sale Transaction
SAEHAN BANCORP ANNOUNCES SUCCESSFUL $60.6 MILLION STOCK SALE TRANSACTION
LOS ANGELES--(BUSINESS WIRE)--Saehan Bancorp (OTCBB:SAEB - News), parent company of Saehan Bank, today announced that it consummated a privately negotiated $60.6 million common stock sale transaction to accredited investors. Substantially all of the proceeds from the transaction will be contributed as new capital into Saehan Bank. As a result of the capital injection, Saehan Bank attained a Tier 1 capital leverage ratio in excess of 10% as required under the Consent Order dated December 7, 2010 with the Federal Deposit Insurance Corporation and the California Department of Financial Institutions.

Safe Harbor

This press release contains certain forward-looking information about Saehan Bancorp that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of Saehan Bancorp. Saehan Bancorp cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, Saehan Bancorp’s results could differ materially from those expressed in, or implied or projected by such forward-looking statements. Saehan Bancorp assumes no obligation to update such forward-looking statements, except as required by law.

Contact:

Saehan Bancorp
Daniel Kim, SVP & CFO, 213-637-4802
2010/02/12 Saehan Bancorp Reports Fourth Quarter and Year-End Results
SAEHAN BANCORP REPORTS FOURTH QUARTER AND YEAR-END RESULTS

LOS ANGELES--(BUSINESS WIRE)--Saehan Bancorp (OTCBB:SAEB - News) today announced financial results for its fourth quarter and year ended December 31, 2009, reflecting the impact of current economic conditions.

The company reported a net loss of $23.9 million, or $1.49 per share for the fourth quarter of 2009 compared with net loss of $11.4 million, or $0.85 per share, in the same period a year ago. Results for the fourth quarter were impacted by a $19.7 million, or $0.58 per share, non-cash deferred tax asset valuation allowance.

For the twelve-month period Saehan Bancorp reported a net loss of $56.4 million, or $3.52 per share, compared with net loss of $12.9 million, or $1.04 per diluted share, for 2008.

Additional highlights at December 31, 2009 and for the fourth quarter of 2009 include:

  • Total assets at December 31, 2009 were $668.1 million compared with $842.7 million a year ago.
  • Net loans were $533.3 million at December 31, 2009 compared with $709.6 million last year.
  • Total deposits at December 31, 2009 were $576.3 million compared with $633.5 million at December 31, 2008.
  • Net interest margin for the fourth quarter of 2009 was 2.44 percent compared with 2.76 percent reported in the fourth quarter of 2008.
  • Efficiency for the fourth quarter of 2009 was 106.8 percent compared with 93.5 percent in the fourth quarter of 2008.
  • Nonperforming loans at December 31, 2009 were $50.6 million compared with $42.0 million at December 31, 2008.
  • Allowance for loan losses was 6.81 percent of total loans at December 31, 2009 compared to 3.03 percent at December 31, 2008.

“During the fourth quarter, the company continued to focus on restoring the bank’s capital position to an acceptable level. This is clearly a challenging period and we are working due diligently to raise additional capital to strengthen the bank’s financial structure,” said Chung Hoon Youk, president and chief executive officer of Saehan Bancorp.

Net interest income before provision for loan losses was $4.5 million in the fourth quarter of 2009 compared with $5.5 million in the fourth quarter of 2008. For the fourth quarter of 2009, net interest margin was 2.44 percent compared with 2.76 percent in the fourth quarter of 2008. For the full year, net interest income and the net interest margin before provision for loan losses were $16.2 million and 1.94 percent, respectively, compared with $27.1 million and 3.38 percent, respectively, for 2008. The decrease in the net interest margin from the same quarter a year ago was primarily a result of increases in non-accrual loans and long-term brokered deposits.

Noninterest income in the fourth quarter of 2009 totaled $1.5 million compared with $865,000 in the fourth quarter of 2008. For the full year, noninterest income was $1.7 million, down 67.1 percent from $5.3 million reported in 2008. The decrease in noninterest income is primarily attributable to the $4.6 million of loss on sale of other real estate owned in 2009.

Noninterest expense for the fourth quarter of 2009 was $6.4 million, an increase of $451,000 from the fourth quarter of 2008. For the full year, noninterest expense was $24.4 million compared with $24.0 million in 2008. The increase in noninterest expense for the fourth quarter and full year of 2009 is primarily attributable to increases in legal expenses and FDIC deposit insurance assessment partially offset by lower employee salaries.

The efficiency ratio for the fourth quarter of 2009 was 106.8 percent compared with 93.5 percent in the fourth quarter of 2008. The efficiency ratio for the full year was 136.3 percent compared with 74.3 percent for 2008.

Nonperforming loans and OREO were $67.6 million at December 31, 2009, compared with $46.4 million at December 31, 2008. Nonperforming assets represented 10.1 percent of total assets at December 31, 2009. The provision for loan losses was $3.3 million for the fourth quarter of 2009 compared with $19.4 million for the year ago quarter. The provision for loan losses for 2009 was $50.8 million, compared with the provision for loan losses of $29.8 million for 2008.

Shareholders’ equity totaled $6.5 million at December 31, 2009, compared with $62.8 million at December 31, 2008. Shareholders’ equity primarily decreased as a result of net losses. Saehan Bank, the company’s subsidiary, remained “Significantly Undercapitalized” under the regulatory capital adequacy guidelines. The bank’s leverage Ratio was 3.5 percent, the Tier 1 Risk-based Capital Ratio was 4.3 percent and the Total Risk-based Capital Ratio was 5.7 percent at December 31, 2009.

Due to continuing operating losses during 2009, management reassessed the potential realization of the deferred tax asset as of December 31, 2009 and established a valuation allowance of $19.7 million, to reduce the deferred tax asset to approximately $9.3 million, which represents the amount of the asset estimated to be currently recoverable via carryback of current net operating losses under the new tax legislation signed on November 6, 2009.

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 the Korean-American community in Los Angeles. 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)
31-Dec
2009 2008
Assets:
Cash & due from banks - demand 11,697 15,218
Due from banks-interest bearing 23,437 1,022
Federal fund sold 4,392 32,792
Securities available-for-sale 43,863 44,399
Loans 575,308 731,709
Less: Allowance for loan losses 42,037 22,157
Net loans 533,271 709,552
Loans held for sale - 729
Bank premises and equipment, net 4,251 6,044
Other real estate owned 17,046 4,415
Direct & indirect investments in real estate 7,884 -
Other assets 22,244 28,480
Total assets 668,085 842,651
Liabilities and stockholders' equity:
Deposits:
Noninterest bearing demand 126,594 113,212
Interest bearing demand and savings 89,301 135,718
Time deposits 360,394 384,521
Total deposits 576,289 633,451
Other borrowed money 60,000 121,000
Junior subordinated debenture 20,619 20,619
Other liabilities 4,655 4,735
Total liabilities 661,563 779,805
Total stockholders' equity 6,522 62,846
Total liabilities and
stockholders' equity 668,085 842,651
Book value per share 0.39 3.92
Period end shares outstanding 16,032,429 16,032,429
Nonperforming loans 50,563 42,012
Tier I leverage ratio 1.10 % 9.87 %
Tier 1 risk-based capital ratio 1.38 % 10.51 %

Total risk-based capital ratio

2.76 % 11.78 %
Saehan Bancorp
Condensed Income Statement and Comprehensive Income
(Dollars in thousands except per share data)
For the three

For the twelve

months ended months ended
31-Dec 31-Dec
2009 2008 2009 2008
Interest income:
Interest and fees on loans 8,090 10,728 35,330 49,824
Interest on securities 278 449 1,479 1,923
Interest on federal funds sold 20 8 74 226
Other interest income 135 69 490 348
Total interest income 8,523 11,254 37,373 52,321
Interest expense:
Deposit 3,164 4,496 17,135 20,289
Other 867 1,244 4,045 4,938
Total interest expenses 4,031 5,740 21,180 25,227
Net interest income before

provision for loan losses

4,492 5,514 16,193 27,094

Provision for loan losses

3,309 19,446 50,815 29,786
Non-interest income:
Service charges on deposit accounts 556 635 2,427 2,547
Gain on sale of loans 88 17 360 723
Gain on sale of investment securities 334 - 358 -
Other operating income 541 213 (1,415 ) 1,989
Total non-interest income 1,519 865 1,730 5,259
Non-interest expense:
Salaries and employee benefits 2,311 2,999 9,497 12,273
Net occupancy and equipment expense 1,282 1,298 5,071 4,974
Other operating expense 2,824 1,669 9,866 6,802
Total non-interest expenses 6,417 5,966 24,434 24,049
Income before income taxes (3,715 ) (19,033 ) (57,326 ) (21,482 )
Income taxes 20,234 (7,597 ) (896 ) (8,597 )

Income before extraordinary items

(23,949 ) (11,435 ) (56,430 ) (12,885 )
Extraordinary items, net of taxes - - - -
Net income (23,949 ) (11,435 ) (56,430 ) (12,885 )
Net income per share -
Basic $ (1.49 ) $ (0.85 ) $ (3.52 ) $ (1.04 )
Diluted $ (1.49 ) $ (0.85 ) $ (3.52 ) $ (1.04 )
Basic average common shares
outstanding 16,032,429 13,437,445 16,032,429 12,401,413
Diluted average common shares
outstanding 16,032,429 13,437,445 16,035,433 12,401,413
Charge offs 4,904 8,512 32,732 16,264
Recoveries 466 333 1,797 386
For the three

For the twelve

months ended months ended
31-Dec 31-Dec
2009 2008 2009 2008
Key Operating Ratios:
Return on average assets -12.60 % -5.47 % -6.54 % -1.54 %
Return on average equity -290.13 % -68.56 % -110.96 % -20.32 %
Earning assets yield 4.62 % 5.63 % 4.48 % 6.52 %
Interest rate on interest bearing
liabilities 2.33 % 3.61 % 3.11 % 2.15 %
Net interest margin 2.44 % 2.76 % 1.94 % 3.38 %
Cost of funds 1.96 % 3.01 % 2.63 % 3.29 %
Efficiency ratio 106.75 % 93.52 % 136.33 % 74.33 %
Average stockholders' equity to
average total assets 4.34 % 7.98 % 5.89 % 7.58 %

Contact:
Saehan Bancorp
Daniel Kim
Senior Vice President & Chief Financial Officer
(213) 637-4802
or
Maier & Company, Inc.
Gary S. Maier
(310) 442-9852
 
2010/02/11 Undercapitalized Banks Keep Rising
UNDERCAPITALIZED BANKS KEEP RISING

NEW YORK (TheStreet) -- A stock-market rally, government bailout and rising profits have lifted banks out of the doldrums.

Still, the number of undercapitalized U.S. banks increased to 146 as of Dec. 31, up from 116 in the previous quarter. Sixty-three banks failed in the fourth quarter.

Bank failures are continuing at a brisk pace. The Federal Deposit Insurance Corp. has been offering generous loss-sharing agreements that make acquisitions of failed banks attractive to holding companies and private-equity investors. An example is New York Community Bancorp, which booked an after-tax gain of $84 million on its December acquisition of the failed Amtrust Bank. With such sweet deals available for failed banks, it's difficult for smaller banks still operating to be merged into stronger institutions or attract investment capital.

Nearly half of the undercapitalized banks are in the four states with the highest number of bank failures since the beginning of 2008: Georgia, Florida, Illinois and California.

Most banks, and savings and loans need to maintain tier 1 leverage, tier 1 risk-based and total risk-based capital ratios of at least 5%, 6% and 10% to be considered well-capitalized under regulatory guidelines . Some trust banks have much lower capital requirements. The ratios need to be at least 4%, 4% and 8% for most to be considered adequately capitalized.

The largest undercapitalized bank with $10.3 billion in total assets as of Dec. 31 was Sterling Savings Bank of Spokane, Wash., the main subsidiary of Sterling Financial. Mounting commercial-loan charge-offs in the second half led to a 2009 net loss of $830 million, and the bank slipped to undercapitalized with a total risk-based capital ratio of 7.25% as of Dec. 31. Nonperforming assets, including loans past due 90 days or in nonaccrual status, along with repossessed real estate comprised 11.38% of total assets as of Dec. 31. Sterling Savings entered into a cease-and-desist order with state regulators and the FDIC on Oct. 9, requiring the bank to raise at least $300 million in tier 1 capital by Dec. 15. In the company's fourth-quarter earnings conference call, executives said the capital increase was forthcoming, and Chief Financial Officer Dan Byrne said the company had the capacity "to go up to about $600 million," according to a transcript provided by SeekingAlpha.

Another large undercapitalized Washington bank was Frontier Bank of Everett, held by Frontier Financial, which had $3.6 billion in total assets as of Dec. 31. Frontier was in a dire state, with a nonperforming-assets ratio of 24.2% even after charging-off close to 10% of its loan portfolio during 2009. During the company's earnings conference call, Chief Executive Officer Pat Fahey said Frontier was continuing "aggressive efforts in our quest for capital."

The following are undercapitalized banks in the four states with the highest number of troubled institutions. Information is based on preliminary data for 99% of U.S. banks provided by SNL Financial on Feb. 8. Thrifts aren't included. Excluded are companies that meet the ordinary capital requirements but are now saddled with specific requirements by regulators. Note that some companies may have conducted capital increases since the end of 2009.

Undercapitalized Georgia Banks

The largest undercapitalized Georgia bank as of Dec. 31 was Appalachian Community Bank of Ellijay, the main subsidiary of Appalachian Bancshares, which had $1 billion in total assets as of Dec. 31.

Net losses of $59 million during 2009 left the institution critically undercapitalized, with a tier 1 leverage ratio of 1.73%. The nonperforming-assets ratio was 23.19%.

Undercapitalized Florida Banks

The biggest undercapitalized bank in the state is the privately held Riverside National Bank of Florida. After several quarters of large losses, Riverside earned $3.4 million in the fourth quarter, which, combined with a decline in total assets, pushed its capital ratios up a bit. The bank entered into a consent order with the Office of the Comptroller of the Currency on Nov. 10, requiring it to achieve a tier 1 leverage ratio of 8% within 60 days.

Bank of Florida - SouthwestBank of Florida - Southeast and Bank of Florida - Tampa Bayare subsidiaries of Bank of Florida Corp. of Naples. An effort in November by the holding company to raise up to $135 million in new capital through a secondary offering of common shares was canceled.

Undercapitalized California Banks

The biggest undercapitalized bank in California was Saehan Bank of Los Angeles, a subsidiary ofSaehan Bancorp.

California regulators and the FDIC had ordered the bank to increase its tier 1 leverage ratio to 8% by Feb. 5 and 10% by March 8. On Friday, the holding company announced that the Feb. 5 due date had been extended to March 8, although Saehan Bank would have to have a leverage ratio of 10% by that date.

-- Reported by Philip van Doorn in Jupiter, Fla.

(At the time of publication, the writer held shares of Riverside Banking Co., the privately held holding company for Riverside National Bank of Florida, where he was previously employed.)

2010/02/05 Saehan Bancorp Announces Extension of Due Date to Comply with Capital Requirements Under Consent Order
SAEHAN BANCORP ANNOUNCES EXTENSION OF DUE DATE TO COMPLY WITH CAPITAL REQUIREMENTS UNDER CONSENT ORDER

LOS ANGELES--(BUSINESS WIRE)--Saehan Bancorp (OTCBB:SAEB - News), announced today that its subsidiary, Saehan Bank, received approval from the California Department of Financial Institutions and the Federal Deposit Insurance Corporation for an extension on the due date for compliance with certain capital ratio requirements. Under the terms of the consent order with the DFI and FDIC, which became effective as of December 7, 2009, Saehan Bank was required to attain a Tier 1 capital leverage ratio of 8% by February 5, 2010 and 10% by March 8, 2010. Today, the DFI and FDIC agreed to extend the due date for compliance from February 5, 2010 to March 8, 2010 while maintaining the requirement that Saehan Bank attain a Tier 1 capital leverage ratio of 10% by such date.

Safe Harbor

This press release contains certain forward-looking information about Saehan Bancorp that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of Saehan Bancorp. Saehan Bancorp cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, Saehan Bancorp’s results could differ materially from those expressed in, or implied or projected by such forward-looking statements. Saehan Bancorp assumes no obligation to update such forward-looking statements, except as required by law.

Contact:

Saehan Bancorp
Daniel Kim, SVP & CFO, 213-637-4802
2010/01/21 Saehan Bancorp Receives Commitment Letters Totaling $30.9 Million
SAEHAN BANCORP RECEIVES COMMITMENT LETTERS TOTALING $30.9 MILLION

LOS ANGELES--(BUSINESS WIRE)--Saehan Bancorp (OTCBB:SAEB - News), parent company of Saehan Bank, today announced it has received conditional commitment letters from various accredited investors, including several members of the Board of Directors, totaling up to $30.9 million in connection with its private placement stock offering. It is anticipated that these commitment letters will be funded by next week. All funds received pursuant to the commitment letters will be deposited into an impound account and not released to the Company until certain conditions have been met, including raising a minimum of $60.0 million in commitments to purchase the Company’s common stock, receipt of all necessary regulatory approvals, and certain other conditions. Unless these conditions are satisfied, all funds deposited into the impound account will be returned to investors.

The Company is conducting a private placement stock offering to raise additional capital to be infused to Saehan Bank to satisfy certain regulatory capital ratios. Saehan Bank entered into a consent order with the Federal Deposit Insurance Corporation and the California State Department of Financial Institutions effective December 7, 2009. Among other things, the Bank is required to attain a Tier 1 capital leverage ratio of 8% within 60 days of the consent order and to attain and thereafter maintain a Tier 1 capital leverage ratio of 10% within 90 days of the consent order.

This announcement shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any offer or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Saehan Bancorp

Saehan Bancorp is a bank holding company with headquarters in Los Angeles, California. Through our wholly-owned bank subsidiary, Saehan Bank, we offer a comprehensive range of financial solutions to meet the financial needs of the Korean-American community in Los Angeles.

Saehan Bancorp is committed to satisfying customers and creating shareholder value. Our ten retail branch offices, International Department and SBA Department of Saehan Bank focus on fulfilling these commitments to customers and shareholders.

Safe Harbor

This press release contains certain forward-looking information about Saehan Bancorp that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of Saehan Bancorp. Saehan Bancorp cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, Saehan Bancorp’s results could differ materially from those expressed in, or implied or projected by such forward-looking statements. Saehan Bancorp assumes no obligation to update such forward-looking statements, except as required by law.

Contact:

Saehan Bancorp
Daniel Kim, SVP & CFO, 213-637-4802

2009/12/10 Saehan Bank Enters Into Regulatory Consent Order
SAEHAN BANK ENTERS INTO REGULATORY CONSENT ORDER

LOS ANGELES--(BUSINESS WIRE)--Saehan Bancorp (OTCBB: SAEB - News) today announced that its wholly owned subsidiary, Saehan Bank, entered into a consent order with the Federal Deposit Insurance Corporation (FDIC) and the California State Department of Financial Institutions (DFI) effective as of December 7, 2009.

In making the announcement, Chung Hoon Youk commented, “Economic conditions have created a challenging banking environment, and all regulatory agencies are working closely with banks to provide the regulatory guidance and direction to help banks maintain financial soundness.” Mr. Youk continued, “Saehan Bank will work closely with the FDIC and DFI to attain full compliance with the agreement as quickly as possible.”

The agreement outlines specific remedial actions the FDIC and DFI want the Bank to take to improve the soundness of the Bank. These actions include retaining qualified management, eliminating the Bank’s reliance on brokered deposits, refraining from engaging in any new lines of business or establishing any branches or other offices of the Bank without the prior approval of the Bank’s regulators, furnishing the FDIC and DFI with quarterly progress reports on the Bank’s compliance with the consent order, and notifying the Bank’s shareholder of the issuance and requirements of the consent order. The Bank is also required to obtain prior approval from the FDIC and DFI of director and management changes.

The Bank is also required to attain a Tier 1 capital leverage ratio of 8% within 60 days of the consent order and to attain and thereafter maintain a Tier 1 capital leverage ratio of 10% within 90 days of the consent order. The Bank must also develop and adopt a plan to meet and maintain the capital requirements of the consent order and to comply with the FDIC’s Statement of Policy on Risk-Based Capital. The level of capital required is in addition to a fully funded allowance for loan and lease losses. Mr. Youk stated, “All bank regulatory agencies monitor capital ratios closely, particularly in this challenging economy.” He continued, “We have a number of capital raising options available to the bank and we are weighing these options while proceeding with efforts to raise capital through private sources in the U.S. and in South Korea.”

The consent order does not impact the ability of the Bank to transaction business with banking customers. Saehan Bank will continue to serve customers in all areas including providing access to lines of credit, paying competitive rates on deposits, and processing banking transactions. All customer deposits are fully insured to the highest limits set by the FDIC, which are $250,000 for individually titled accounts and $250,000 for individually titled IRA accounts. In addition, Saehan Bank participates in the FDIC Transaction Account Guarantee Program. Under this program, all non-interest bearing transaction accounts are fully guaranteed by the FDIC for the entire amount of the account. The guarantee also applies to interest bearing transaction accounts with interest rates of 0.50 percent or less. This program is in addition to and separate from the coverage available under the FDIC general deposit insurance rules.

Mr. Youk commented, “We take the entry of this order seriously and are committing the necessary resources to this effort in order to achieve full compliance as quickly as possible and no component of this order places any restrictions on our ability to continue to provide exceptional service to our customers.” In closing, Mr. Youk stated, “Our board, management and staff are making every effort to successfully meet the directives set forth in the consent order.”

Founded in 1990, Saehan Bank is a wholly-owned subsidiary of Saehan Bancorp, a bank holding company headquartered in Los Angeles, California. Saehan Bank serves the Greater Los Angeles and Orange County areas. The Bank focuses on general commercial banking business, offering commercial banking services to small and medium-size businesses, professionals and retail customers. Visit www.SaehanBank.com to learn more.

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about management’s plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “should,” “projects,” “seeks,” “estimates” or words of similar meaning.

These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations in the forward-looking statements:

the risks associated with lending and potential adverse changes in credit quality;
increased loan delinquency rates;
the risks presented by a continued economic slowdown, which could adversely affect credit quality, loan collateral values, investment values, liquidity levels, and loan originations;
changes in market interest rates, which could continue to adversely affect our net interest income and profitability;
legislative or regulatory changes that adversely affect our business or our ability to complete pending or prospective future acquisitions;
reduced demand for banking products and services; and
competition from other financial services companies in our markets; and the Company’s success in managing risks involved in the foregoing.
Forward-looking statements speak only as of the date of publication and Saehan Bancorp does not undertake any obligation to publicly correct or update any forward-looking statement if the Company later becomes aware that it is not likely to be achieved.

Contact:

Saehan Bank
Daniel Kim, SVP & CFO
213-637-4802

2009/11/12 Saehan Bancorp Reports Third Quarter Results
SAEHAN BANCORP REPORTS THIRD QUARTER RESULTS

LOS ANGELES, CALIFORNIA -- November 12, 2009 -- Saehan Bancorp (OTCBB:SAEB) today announced financial results for its third quarter ended September 30, 2009, reflecting the continued impact of current economic conditions.

The company reported a net loss of $7.5 million, or $0.47 per share, for the third quarter of 2009 compared with net loss of $765,000, or $0.06 per diluted share, for the third quarter of 2008 – representing a significant improvement compared with the $22.3 million net loss, or $1.39 per share, reported in the preceding second quarter. The return on average equity for the third quarter of 2009 was -72.74 percent and the return on average assets was -3.26 percent compared with -4.95 percent and -0.36 percent, respectively, for the third quarter of 2008.

Additional highlights for the third quarter of 2009 include:

  • Total assets at September 30, 2009 decreased 6.6 percent to $830.1 million from $888.3 million a year ago.
  • Net loans decreased 23.6 percent to $566.9 million at September 30, 2009 from $741.8 million last year.
  • Total deposits at September 30, 2009 increased 3.6 percent to $711.9 million from $687.3 million at September 30, 2008.
  • Net interest margin for the third quarter of 2009 increased to 1.57 percent from the 1.40 percent reported in the second quarter of 2009.
  • Efficiency for the third quarter of 2009 was 105.0 percent compared with 194.0 percent in the second quarter of 2009.
  • Nonaccrual loans at September 30, 2009 decreased to $55.9 million from $58.4 million at June 30, 2009.
  • Allowance for loan losses increased to 7.08 percent of total loans at September 30, 2009 compared to 6.43 percent at June 30, 2009.

“Financial results for the third quarter of 2009 are reflective of the challenging economic conditions facing the banking industry. We continue to remain focused on restoring the bank’s capital position to an acceptable level, building adequate reserves for loan losses, and maintaining ample liquidity,” said Chung Hoon Youk, president and chief executive officer of Saehan Bancorp.

Net interest income before provision for loan losses was $3.5 million in the third quarter of 2009 compared with $7.5 million in the third quarter of 2008, and $3.3 million in the second quarter of 2009. For the third quarter of 2009, net interest margin was 1.57 percent compared with 1.40 percent in the second quarter of 2009. The increase in the net interest margin from the previous quarter was primarily a result of a decrease in high-cost deposits, re-pricing of certificates of deposits, a decrease in brokered deposits and a decrease in non-accrual loans.

Noninterest income in the third quarter of 2009 totaled $2.3 million compared with $1.3 million in the third quarter of 2008 and $126,000 in the second quarter of 2009. The increase in noninterest income is primarily attributable to a $1.0 million gain from the sale of the bank owned property in the third quarter of 2009.

Noninterest expense for the third quarter of 2009 was $6.2 million, an increase of $472,000 from the third quarter of 2008 and a decrease of $398,000 from the second quarter of 2009. The slight decrease in noninterest expense for the third quarter of 2009 compared with that of the second quarter of 2009 is primarily attributable to lower employee salaries and benefits, partially offset by the increases in FDIC assessment and legal fees.

The efficiency ratio for the third quarter of 2009 was 106.0 percent compared with 194.0 percent in the second quarter of 2009.

Nonperforming assets were $68.2 million at September 30, 2009, compared with $66.9 million at June 30, 2009. Nonperforming assets represented 8.2 percent of total assets at September 30, 2009. The provision for loan losses was $12.4 million for the third quarter of 2009 compared with $34.9 million for the second quarter of 2009.

Shareholders’ equity totaled $33.4 million at September 30, 2009 -- a decrease of $7.3 million compared with $40.7 million at June 30, 2009. Shareholders’ equity primarily decreased as a result of the net loss. The Leverage Ratio was 2.6 percent, the Tier 1 Risk-based Capital Ratio was 3.5 percent and the Total Risk-based Capital Ratio was 4.8 percent at September 30, 2009.

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 the Korean-American community in Los Angeles. 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
2009 2008
Assets:
Cash & due from banks - demand 13,915 20,880

Due from banks - interest bearing

108,047 1,022
Federal fund sold 5,082 48,410
Securities available-for-sale 75,617 45,030
Loans 610,051 752,677
Less: Allowance for loan losses 43,166 10,890
Net loans 566,885 741,786
Loans held for sale 999 645
Bank premises and equipment, net 4,638 6,395
OREO and other investment in real estate 12,360 -
Other assets 42,504 21,987
Total assets 830,050 888,287
Liabilities and stockholders' equity:
Deposits:
Noninterest bearing demand 130,842 138,065
Interest bearing demand and savings 125,415 157,613
Time deposits 455,684 391,635
Total deposits 711,941 687,313
Other liabilities 84,684 140,844
Total liabilities 796,625 828,157
Total stockholders' equity 33,425 60,130

Total liabilities and stockholders' equity

830,050 888,287
Book value per share 2.08 4.99
Period end shares outstanding 16,032,429 12,053,454
Nonperforming loans 55,917 27,355
Tier I leverage 2.56 % 9.30 %
Tier I risk-based capital 3.49 % 9.80 %

Total risk-based capital

4.81 % 11.06 %
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
2009 2008 2009 2008
Interest income:
Interest and fees on loans 8,552 12,881 27,240 39,096
Interest on securities 365 472 1,201 1,474
Interest on federal funds sold 36 80 54 218
Other interest income 197 94 355 280
Total interest income 9,150 13,527 28,850 41,067
Interest expense:
Deposit 4,635 4,867 13,971 15,793
Other 993 1,196 3,178 3,694
Total interest expenses 5,628 6,063 17,149 19,487

Net interest income before provision for loan losses

3,522   7,464 11,701 21,580

Provision for loan losses

12,380 4,352 47,506 10,340

Noninterest income:

Service charges on deposit accounts 570 635 1,871 1,912
Gain on sale of loans 173 241 272 706
Gain on sale of investment securities 14 - 24 -
Gain (loss) on sales of OREO 24 - (1,956 ) -
Other operating income 1,537 392 2,657 1,776

Total noninterest income

2,318 1,268 2,868 4,394

Noninterest expense:

Salaries and employee benefits 2,236 2,854 7,186 9,274
Net occupancy and equipment expense 1,282 1,238 3,789 3,676
Other operating expense 2,674 1,628 7,042 5,133

Total noninterest expenses

6,192 5,720 18,017 18,083
Income before income taxes (12,732 ) (1,340 ) (50,954 ) (2,450 )
Income taxes (5,256 ) (575 ) (21,130 ) (1,000 )

Income before extraordinary items

(7,476 ) (765 ) (29,824 ) (1,450 )
Extraordinary items, net of taxes
Net income (7,476 ) (765 ) (29,824 ) (1,450 )
Net income per share -
Basic $ (0.47 ) $ (0.06 ) $ (1.86 ) $ (0.12 )
Diluted $ (0.47 ) $ (0.06 ) $ (1.86 ) $ (0.12 )

Basic average common shares outstanding

16,032,429 12,053,454 16,032,429 12,053,548

Diluted average common shares outstanding

16,035,637 12,059,123 16,035,433 12,064,172
Charge offs 12,154 4,511 27,828 7,752
Recoveries 218 3 1,331 53
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
2009 2008 2009 2008
Interest income:
Interest and fees on loans 8,552 12,881 27,240 39,096
Interest on securities 365 472 1,201 1,474
Interest on federal funds sold 36 80 54 218
Other interest income 197 94 355 280
Total interest income 9,150 13,527 28,850 41,067
Interest expense:
Deposit 4,635 4,867 13,971 15,793
Other 993 1,196 3,178 3,694
Total interest expenses 5,628 6,063 17,149 19,487

Net interest income before provision for loan losses

3,522   7,464 11,701 21,580

Provision for loan losses

12,380 4,352 47,506 10,340

Noninterest income:

Service charges on deposit accounts 570 635 1,871 1,912
Gain on sale of loans 173 241 272 706
Gain on sale of investment securities 14 - 24 -
Gain (loss) on sales of OREO 24 - (1,956 ) -
Other operating income 1,537 392 2,657 1,776

Total noninterest income

2,318 1,268 2,868 4,394

Noninterest expense:

Salaries and employee benefits 2,236 2,854 7,186 9,274
Net occupancy and equipment expense 1,282 1,238 3,789 3,676
Other operating expense 2,674 1,628 7,042 5,133

Total noninterest expenses

6,192 5,720 18,017 18,083
Income before income taxes (12,732 ) (1,340 ) (50,954 ) (2,450 )
Income taxes (5,256 ) (575 ) (21,130 ) (1,000 )

Income before extraordinary items

(7,476 ) (765 ) (29,824 ) (1,450 )
Extraordinary items, net of taxes
Net income (7,476 ) (765 ) (29,824 ) (1,450 )
Net income per share -
Basic $ (0.47 ) $ (0.06 ) $ (1.86 ) $ (0.12 )
Diluted $ (0.47 ) $ (0.06 ) $ (1.86 ) $ (0.12 )

Basic average common shares outstanding

16,032,429 12,053,454 16,032,429 12,053,548

Diluted average common shares outstanding

16,035,637 12,059,123 16,035,433 12,064,172
Charge offs 12,154 4,511 27,828 7,752
Recoveries 218 3 1,331 53

Contact: Daniel Kim
Senior Vice President & Chief Financial Officer
Saehan Bancorp
(213) 637-4802
-or-
Gary S. Maier
Maier & Company, Inc.
310-442-9852

2009/05/21 Mr. Hae Ryong Kim was elected as a new chairman of the Board and Mr. Don Rhee was elected as a new vice chairman of the board
2009/05/13 Saehan Bancorp Reports First Quarter Results
SAEHAN BANCORP REPORTS FIRST QUARTER RESULTS

LOS ANGELES, CALIFORNIA -- May 13, 2009 -- 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 captal 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 lossses 4,908 7,132
Provision for loan lossses 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 extraordianry 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%

Contact: Daniel Kim
Senior Vice President & Chief Financial Officer
Saehan Bancorp
(213) 637-4802
-or-
Gary S. Maier
Maier & Company, Inc.
310-442-9852

2009/03/26 Saehan Bancorp Reports Fourth Quarter and Year-End Results
SAEHAN BANCORP REPORTS FOURTH QUARTER AND YEAR-END RESULTS

LOS ANGELES, CALIFORNIA – March 26, 2009 -- Saehan Bancorp (OTCBB:SAEB) today announced financial results for its fourth quarter and year ended December 31, 2008, reflecting the impact of current economic conditions.
The company reported a net loss of $11.4 million, or $0.85 per share for the fourth quarter of 2008 compared with net income of $1.4 million, or $0.11 per diluted share, in the same period a year ago. For the full year, Saehan Bancorp reported a net loss of $12.9 million, or $1.04 per share, compared with net income of $6.4 million, or $0.53 per diluted share, for 2007.

Additional highlights at December 31, 2008 and for the fourth quarter of 2008 include:

  • Total assets at December 31, 2008 increased 2.3 percent to $842.7 million from $823.6 million a year ago.
  • Net loans increased 3.2 percent to $709.6 million at December 31, 2008 from $687.6 million last year.
  • Total deposits at December 31, 2008 decreased 1.0 percent to $633.5 million from $639.7 million at December 31, 2007.
  • Net interest margin for the fourth quarter of 2008 decreased to 2.76 percent from the 4.05 percent reported in the fourth quarter of 2007.
  • Efficiency for the fourth quarter of 2008 was 93.5 percent compared with 54.2 percent in the fourth quarter of 2007.
  • Nonperforming loans at December 31, 2008 increased to $42.0 million from $9.7 million at December 31, 2007.
  • Allowance for loan losses increased to 3.03 percent of total loans at December 31, 2008 compared to 1.11 percent at December 31, 2007.

“While the bank experienced a modest increase in total assets and net loan activity in the fourth quarter, the current economic environment for the U.S. banking industry remains challenging. We continue to focus on strengthening key measurements such as the bank’s capital position, building reserves for loan losses, maintaining ample liquidity, and controlling non-interest expenses.” said Chung Hoon Youk, president and chief executive officer.

Net interest income before provision for loan losses was $5.5 million in the fourth quarter of 2008 compared with $7.8 million in the fourth quarter of 2007. For the fourth quarter of 2008, net interest margin was 2.76 percent compared with 4.05 percent in the fourth quarter of 2007. For the full year, net interest income and the net interest margin before provision for loan losses were $27.1 million and 3.38 percent, respectively, compared with $30.7 million and 4.41 percent, respectively, for 2007. The decrease in the net interest margin from the same quarter a year ago was primarily a result of decreases in Fed funds rate and a lag in the re-pricing of certain deposit products, such as certificates of deposits.
Noninterest income in the fourth quarter of 2008 totaled $865,000 million compared with $1.8 million in the fourth quarter of 2007. For the full year, noninterest income was $5.3 million, down 39.9 percent from $8.8 million reported in 2007. The decrease in noninterest income is primarily attributable to the $3.5 million decrease in gain on sale of loans for 2008.
Noninterest expense for the fourth quarter of 2008 was $6.0 million, an increase of $812,000 from the fourth quarter of 2007. For the full year, noninterest expense was $24.0 million compared with $25.0 million in 2007. The decrease in noninterest expense for the full year of 2008 is primarily attributable to lower employee salaries and a reduction of the workforce.
The efficiency ratio for the fourth quarter of 2008 was 93.5 percent compared with 54.2 percent in the fourth quarter of 2007. For the year 2008, the efficiency ratio was 74.3 percent compared with 63.2 percent for 2007.
Nonperforming loans and OREO were $46.4 million at December 31, 2008, compared with $9.7 million at December 31, 2007. Nonperforming assets represented 5.51 percent of total assets at December 31, 2008. The provision for loan losses was $19.4 million for the fourth quarter of 2008 compared with $2.2 million for the year ago quarter. For the year 2008, the provision for loan losses was $29.8 million, compared with the provision for loan losses of $4.0 million for 2007.
Shareholders’ equity totaled $62.8 million at December 31, 2008 -- an increase of $1.4 million compared with $61.4 million at December 31, 2007. Shareholders’ equity primarily increased as a result of a capital offering of $13.9 million in November 2008, partially offset by net loss of $12.9 million. Capital ratios continue to be above the “Well-Capitalized” guidelines established by the regulatory agencies. The Leverage Ratio was 9.9 percent, the Tier 1 Risk-based Capital Ratio was 10.5 percent and the Total Risk-based Capital Ratio was 11.8 percent at December 31, 2008.

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 the Korean-American community in Los Angeles. Saehan Bancorp is committed to satisfying customers and creating shareholder value. Its ten retail branch offices, International Department, SBA Department, and Financial Services 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)
31-Dec
2008 2007
Assets:
Cash & due from banks - demand 15,218 14,427
Due from banks-interest bearing 1,022 4,899
Federal fund sold 32,792 37,430
Securities available-for-sale 44,399 52,681
Loans 731,709 695,263
Less: Allowance for loan losses 22,157 7,704
Net loans 709,552 687,559
Loans held for sale 729 761
Bank premises and equipment, net 6,044 6,800
Other assets 32,895 19,081
Total assets 842,651 823,638
Liabilities and stockholders' equity:
Deposits:
Noninterest bearing demand 113,212 119,815
Interest bearing demand and savings 135,718 156,669
Time deposits 384,521 363,174
Total deposits 633,451 639,658
Other borrowed money 121,000 96,500
Junior subordinated debenture 20,619 20,619
Other liabilities 4,735 5,453
Total liabilities 779,805 762,230
Total stockholders' equity 62,846 61,408
Total liabilities and
stockholders' equity 842,651 823,638
Book value per share 3.92 5.50
Period end shares outstanding 16,032,429 11,160,737
Nonperforming loans 42,012 9,652
Tier I leverage ratio 9.87% 10.21%
Tier 1 risk-based capital ratio 10.51% 11.00%
Total risk-based captal ratio 11.78% 12.08%
Saehan Bancorp
Condensed Income Statement and Comprehensive Income
(Dollars in thousands except per share data)
For the three For the tweleve
months ended months ended
31-Dec 31-Dec
2008 2007 2008 2007
Interest income:
Interest and fees on loans 10,728 14,549 49,824 54,430
Interest on securities 449 540 1,923 2,421
Interest on federal funds sold 8 39 226 212
Other interest income 69 28 348 66
Total interest income 11,254 15,156 52,321 57,129
Interest expense:
Deposit 4,496 5,605 20,289 21,068
Other 1,244 1,789 4,938 5,320
Total interest expenses 5,740 7,394 25,227 26,388
Net interest income before
provision for loan lossses 5,514 7,762 27,094 30,741
Provision for loan lossses 19,446 2,206 29,786 3,983
Non-interest income:
Service charges on deposit accounts 635 623 2,547 2,337
Gain on sale of loans 17 439 723 4,140
Gain on sale of investment securities - - - -
Other operating income 213 689 1,989 2,279
Total non-interest income 865 1,751 5,259 8,756
Non-interest expense:
Salaries and employee benefits 2,999 2,697 12,273 14,368
Net occupancy and equipment expense 1,298 1,185 4,974 4,225
Other operating expense 1,669 1,272 6,802 6,357
Total non-interest expenses 5,966 5,154 24,049 24,950
Income before income taxes (19,033) 2,153 (21,482) 10,564
Income taxes (7,597) 784 (8,597) 4,164
Income before extraordianry items (11,435) 1,369 (2,885) 6,400
Extraordinary items, net of taxes - - - -
Net income (11,435) 1,369 (12,885) 6,400
Net income per share -
Basic $ (0.85) $ 0.11 $ (1.04) $ 0.53
Diluted $ (0.85) $ 0.11 $ (1.04) $ 0.53
Basic average common shares
outstanding 13,437,445 12,053,421 12,401,413 12,021,977
Diluted average common shares
outstanding 13,437,445 12,070,954 12,401,413 12,125,112
Charge offs 8,512 997 16,264 1,228
Recoveries 333 (3) 386 16
For the three For the tweleve
months ended months ended
31-Dec 31-Dec
2008 2007 2008 2007
Key Operating Ratios:
Return on average assets -5.47% 0.69% -1.54% 0.89%
Return on average equity -68.56% 8.96% -20.32% 11.26%
Earning assets yield 5.63% 7.90% 6.52% 8.20%
Interest rate on interest bearing
liabilities 3.61% 4.87% 2.15% 4.91%
Net interest margin 2.76% 4.05% 3.38% 4.41%
Cost of funds 3.01% 4.06% 3.29% 4.01%
Efficiency ratio 93.52% 54.18% 74.33% 63.17%
Average stockholders' equity to
average total assets 7.98% 7.66% 7.58% 7.86%

Contacts: Daniel Kim
Senior Vice President & Chief Financial Officer
Saehan Bancorp
(213) 637-4802
or
Gary S. Maier
Maier & Company, Inc.
(310) 442-9852

 
2008/11/10 Saehan Bancorp Reports Third Quarter Results
SAEHAN BANCORP REPORTS THIRD QUARTER RESULTS

LOS ANGELES, CALIFORNIA – November 10, 2008 -- Saehan Bancorp (OTCBB:SAEB) today reported results for its third quarter ended September 30, 2008 – reflecting increases in total assets, net loans and total deposits.
The company recorded a net loss of $765,000, or 0.06 per diluted share, for the third quarter of 2008, compared with a net income of $1.8 million, or $0.15 per diluted share a year ago. The return on average equity for the third quarter of 2008 was -4.96 percent and the return on average assets was -0.36 percent compared with 12.18 percent and 0.96 percent, respectively, for the third quarter a year earlier.

Other highlights for the third quarter of 2008 included:

  • Total assets increased $106.8 million, or 13.7 percent from the same period a year ago.
  • Net loans increased $69.0 million, or 10.3 percent, over the same period a year ago.
  • Total deposits increased $93.3 million, or 15.7 percent, over a year ago.
  • Net interest margin was 3.89 percent, compared with 4.27 percent for the third quarter of 2007.
  • Efficiency ratio was 65.5 percent, compared 66.6 percent for the third quarter of 2007.
  • Noninterest income was $1.3 million, compared with $1.9 million for the third quarter of 2007.
  • Noninterest expense was $5.7 million, compared with $6.4 million for the third quarter of 2007.
  • Asset Quality:
    • Recorded provision for loan losses of $4.4 million
    • Net charge-off loans were $4.5 million
    • Total allowance for loan losses to total loan ratio improved to 1.45 percent
    • Total nonperforming loans to total asset ratio was 3.08 percent

“We continue to see consistent growth in our loan and deposit portfolios. The adverse economic environment, however, required the bank to increase the level of allowance to total loan coverage - resulting in an increased loan loss provision for the third quarter of 2008,” said Chung H. Youk, president and chief executive officer.
“We anticipate that the bank will regain the earnings momentum when our credit costs return to a more normalized level.” Youk said.
Net interest income before provision for loan losses was $7.5 million in the third quarter of 2008 compared with $7.7 million in the same period a year ago. Net interest margin for the third quarter of 2008 was 3.89 percent compared with 4.27 percent in the third quarter a year earlier. Net interest margin was adversely affected by the Federal Reserve’s decision to aggressively lower the Federal Funds Rate during the first half of the year and the increase in non-accrual loans during the year.
Noninterest income in the third quarter of 2008 totaled $1.3 million, compared with $1.9 million a year ago. The reduction was primarily attributable to a $341,000 decrease in gain on sale of loans. 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 third quarter of 2008 was $5.7 million, a decrease of $661,000 from the third quarter last year. The decrease in noninterest expense for the third quarter of 2008 was primarily attributable to lower employee compensation expense, partially offset by higher legal and other operating expenses. The efficiency ratio for the third quarter of 2008 was 65.5 percent compared with 66.6 percent in the third quarter of 2007.
Nonperforming loans were $27.4 million at September 30, 2008 up $21.6 million from $5.8 million at September 30, 2007. Nonperforming loans represented 3.08 percent of total assets at September, 2008. The provision for loan losses was $4.4 million for the third quarter of 2008 compared with $266,000 a year ago. The allowance for loan losses increased to $10.9 million at September 30, 2008, compared to $6.5 million at September 30, 2007.
Total assets increased 13.7 percent to $888.3 million as of September 30, 2008 from $781.5 million at September 30, 2007. Total deposits as of September 30, 2008 increased 15.7 percent to $687.3 million from $594.0 million a year earlier.
Shareholders’ equity increased to $60.1 million at September 30, 2008 from $59.7 million at September 30, 2007. Capital ratios continue to be well above the “Well-Capitalized” guidelines established by the regulatory agencies. The Leverage Ratio was 9.30 percent, the Tier 1 Risk-based Capital Ratio was 9.80 percent and the Total Risk-based Capital Ratio was 11.06 percent.
On November 6, 2008, the Company’s subsidiary, Saehan Bank, entered into a memorandum of understanding with the DFI and the FDIC to address certain weaknesses identified in Saehan Bank’s operations. The memorandum of understanding requires, among other things, that Saehan Bank: (i) maintain management acceptable to the DFI and the FDIC; (ii) notify the DFI and the FDIC prior to adding any individual as a senior executive officer of the Bank; (iii) develop or revise, adopt and revise, adopt and implement written lending and collection policies to ensure adequate control of credit risk and lending functions; (iv) develop or revise, adopt and implement a comprehensive policy for determining the appropriateness of Saehan Bank’s allowance for loan and lease losses; (v) develop and submit for regulatory approval, a three-year strategic plan to include a comprehensive discussion of capital, liquidity, and the growth and composition of the loan and deposit portfolios, including financial projections for 2008 to 2010; (vi) maintain a minimum Tier 1 leverage capital ratio and a minimum tangible shareholders’ equity to total tangible assets ratio of not less than 8.5% while maintaining an appropriate allowance for loan and lease losses; and (vii) provide periodic progress reports to the DFI and the FDIC detailing the form and manner of any actions to secure compliance with the memorandum of understanding. Management and the Board of Directors are committed to addressing the issues raised in the memorandum of understanding. Management believes that compliance with the provisions of the memorandum of understanding will not have material impact on Saehan Bank’s operating results or financial condition and that the memorandum of understanding will not constrain Saehan Bank’s business. Management has already prepared and begun implementing a comprehensive action plan which is responsive to the majority of the issues set forth in the memorandum of understanding.

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 the Korean-American community in Los Angeles. Saehan Bancorp is committed to satisfying customers and creating shareholder value. Its ten retail branch offices, International Department, SBA Department and Financial Services 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
2008 2007
Assets:
Cash & due from banks - demand 20,880 15,275
Due from banks-interest bearing 1,022 5,779
Federal fund sold 48,410 5,455
Securities available-for-sale 45,030 53,500
Loans 752,677 679,290
Less: Allowance for loan losses 10,890 6,498
Net loans 741,786 672,792
Loans held for sale 645 5,792
Bank premises and equipment, net 6,395 6,541
Other assets 21,987 16,334
Total assets 888,287 781,468
Liabilities and stockholders' equity:
Deposits:
Noninterest bearing demand 138,065 122,479
Interest bearing demand and savings 157,613 176,160
Time deposits 391,635 295,394
Total deposits 687,313 594,033
Other liabilities 140,844 127,690
Total liabilities 828,157 721,378
Total stockholders' equity 60,130 59,745
Total liabilities and
stockholders' equity 888,287 781,468
Book value per share 4.99 4.96
Period end shares outstanding 12,053,454 12,053,327
Nonperforming loans 27,355 5,775
Tier I leverage 9.30% 10.72%
Tier I risk-based capital 9.80% 11.25%
Total risk-based captial 11.06% 12.22%
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
2008 2007 2008 2007
Interest income:
Interest and fees on loans 12,881 13,898 39,096 39,879
Interest on securities 472 550 1,474 1,684
Interest on federal funds sold 80 103 218 173
Other interest income 94 18 280 38
Total interest income 13,527 14,569 41,067 41,774
Interest expense:
Deposit 4,867 5,592 15,793 15,463
Other 1,196 1,308 3,694 3,531
Total interest expenses 6,063 6,900 19,487 18,994
Net interest income before
provision for loan lossses 7,464 7,669 21,580 22,780
Provision for loan lossses 4,352 266 10,340 1,232
Non-interest income:
Service charges on deposit accounts 635 620 1,912 1,656
Gain on sale of loans 241 582 706 3,701
Gain on sale of investment securities -
Other operating income 392 714 1,776 1,914
Total non-interest income 1,268 1,916 4,394 7,271
Non-interest expense:
Salaries and employee benefits 2,854 3,827 9,274 11,776
Net occupancy and equipment expense 1,238 1,112 3,676 3,038
Other operating expense 1,628 1,442 5,133 5,195
Total non-interest expenses 5,720 6,381 18,083 20,009
Income before income taxes (1,340) 2,938 (2,450) 8,810
Income taxes (575) 1,152 (1,000) 3,543
Income before extraordianry items (765) 1,786 (1,450) 5,267
Extraordinary items, net of taxes
Net income (765) 1,786 (1,450) 5,267
Net income per share -
Basic $ (0.06) $ 0.15 $ (0.12) $ 0.44
Diluted $ (0.06) $ 0.15 $ (0.12) $ 0.43
Basic average common shares
outstanding 12,053,454 12,053,265 12,053,548 12,011,226
Diluted average common shares
outstanding 12,059,123 12,096,213 12,064,172 12,187,341
Charge offs 4,511 - 7,752 231
Recoveries 3 10 53 19
For the three For the nine
months ended months ended
30-Sep 30-Sep
2008 2007 2008 2007
Key Operating Ratios:
Return on average assets -0.36% 0.96% -0.23% 1.01%
Return on average equity -4.95% 12.18% -3.10% 12.67%
Yield on earning assets 7.06% 8.10% 6.82% 8.28%
Cost on interest bearing liabilities 3.68% 4.98% 4.07% 4.93%
Net interest margin 3.89% 4.27% 3.58% 4.52%
Cost of funds 3.06% 4.06% 3.75% 4.79%
Efficiency ratio 65.51% 66.57% 69.62% 66.58%
Average stockholders' equity to
average total assets 7.18% 7.85% 7.46% 7.94%

Contact: Daniel Kim
Senior Vice President & Chief Financial Officer
Saehan Bancorp
(213) 637-4802

2008/09/22 Mr. Youk joins Saehan Bank as a new president
2008/08/22 Saehan Bank Announces Appointment of New President
SAEHAN BANCORP ANNOUNCES APPOINTMENT OF CHUNG HOON YOUK AS PRESIDENT AND CHIEF EXECUTIVE OFFICER

LOS ANGELES, CALIFORNIA – August 22, 2008 -- Saehan Bancorp (OTCBB:SAEB) today announced the appointment of Chung Hoon Youk as president and Chief Executive Officer of both Saehan Bancorp and Saehan Bank, succeeding Benjamin Hong who will retire effective September 30, 2008.
A leader in the Korean-American business community for more than 25 years, Youk most recently served as interim president and chief executive officer of Hanmi Bank. His banking career includes serving as president and chief executive of Hanmi Bank from 1999 to 2003 and senior vice president and chief credit officer of Hanmi Bank from 1993 to 1999. Earlier in his career, he served as senior vice president and general manager of the Downtown branch of Hanmi Bank. He earned a Bachelor of Arts degree from Seoul National University in Korea. Youk subsequently earned a Master of Business Administration degree from the University of California Berkeley, Haas School of Management.
“Benjamin Hong has contributed tremendously to Saehan Bank during his 3-year tenure with the bank. The entire board of directors and employees of Saehan Bank wish him well in his retirement. Chung Hoon Youk’s accomplishments, banking experience and solid reputation in the Korean-American banking community were important considerations in his selection and we look forward to his new leadership and contributions to Saehan Bank,” said Kee Whan Ha, chairman of Saehan Bancorp and Saehan Bank.

Contact:
Saehan Bancorp
Daniel Kim,

213-637-4802

2008/08/03 Saehan Bancorp Reports Second Quarter Results
SAEHAN BANCORP REPORTS SECOND QUARTER RESULTS
Thursday August 3, 11:00 am ET
space
LOS ANGELES--(BUSINESS WIRE)--Saehan Bancorp (OTCBB:SAEB - News) today reported results for its second quarter ended June 30, 2008 reflecting increases in total assets, net loans and total deposits offset by the impact of reductions in Federal Funds Rate and reduced Small Business Administration loan activity.

The company recorded a net loss of $1.6 million, or 0.13 per diluted share, for the second quarter of 2008, compared with a net income of $2.1 million, or $0.17 per diluted share a year ago. The return on average equity for the second quarter of 2008 was -10.23 percent and the return on average assets was -0.77 percent compared with 15.18 percent and 1.22 percent, respectively, for the second quarter of 2007.

Other highlights for the second quarter of 2008 included:

-- Total assets increased $157.1 million, or 21.5 percent from the same period a year ago.
-- Net loans increased $135.5 million, or 22.2 percent, over the same period a year ago.
-- Total deposits increased $131.9 million, or 23.5 percent, over a year ago.
-- Net interest margin was 3.47 percent, compared with 4.69 percent for the second quarter of 2007.
-- Efficiency ratio was 72.8 percent, compared 64.0 percent for the second quarter of 2007.
-- Noninterest income was $1.5 million, compared with $3.4 million for the second quarter of 2007.
-- Noninterest expense was $6.2 million, compared with $7.2 million for the second quarter of 2007.
-- Asset Quality:
-- Recorded provision for loan losses of $4.9 million
-- Net charge off loans were $2.2 million
-- Total allowance for loan losses to total loan ratio improved to 1.46 percent
-- Total nonperforming loans to total assets of 3.00 percent

The results of the second quarter were adversely affected by deteriorated asset quality, decreased net interest margin and reduced gains on the sale of SBA loans, said Benjamin Hong, president and chief executive officer.

Its been a very challenging environment for the banking industry in general. Saehan has initiated numerous preemptive measures to address the situation -- including increasing the allowance for loan losses during the second quarter of 2008. In July 2008, the bank reduced its workforce by 9.7% -- representing savings on an annualized basis of approximately $1.3 million. The company is expected to return to profitability for the rest of the year and for the full year 2009, Hong said.

Net interest income before provision for loan losses was $7.0 million in the second quarter of 2008 compared with $7.9 million in the same period a year ago. Net interest margin for the second quarter of 2008 was 3.47 percent compared with 4.69 percent in the second quarter a year earlier. Net interest margin was adversely affected by the Federal Reserves decision to aggressively lower the Federal Funds Rate during the first half of the year and the increase in non-accrual loans in the second quarter of the year.

Noninterest income in the second quarter of 2008 totaled $1.5 million, compared with $3.4 million a year ago. The reduction was primarily attributable to a $1.9 million decrease in gain on sale of loans, partially offset by a $77,000 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 second quarter of 2008 was $6.2 million, a decrease of $1.1 million from the second quarter last year. The decrease in noninterest expense for the second quarter of 2008 was primarily attributable to lower employee compensation expense, partially offset by higher occupancy and equipment expenses. The efficiency ratio for the second quarter of 2008 was 72.8 percent compared with 64.0 percent in the second quarter of 2007. The recent 9.7% reduction in workforce is expected to generate approximately $340,000 savings in salary and other expenses during the second half of the year and approximately $1.3 million for 2009.

Nonperforming loans were $26.7 million at June 30, 2008 up $23.7 million from $3.0 million at June 30, 2007. Nonperforming loans represented 3.00 percent of total assets at June 30, 2008. The provision for loan losses was $4.9 million for the second quarter of 2008 compared with $306,000 a year ago. The allowance for loan losses increased to $11.0 million at June 30, 2008, compared to $6.2 million at June 30, 2007.

Total assets were $888.7 million as of June 30, 2008 -- representing an increase of $157.8 million, or 21.5 percent, over the $731.6 million in total assets reported on June 30, 2007. Total deposits as of June 30, 2008 increased $131.9 million, or 23.5 percent, to $692.7 million from $560.8 million as of June 30, 2007.

Shareholders equity increased to $60.7 million at June 30, 2008 from $57.3 million at June 30, 2007. Shareholders equity primarily increased as a result of the companys earnings and exercise of stock options. Capital ratios continue to be well above the Well-Capitalized guidelines established by the regulatory agencies. The Leverage Ratio was 9.61 percent, the Tier 1 Risk-based Capital Ratio was 9.98 percent and the Total Risk-based Capital Ratio was 11.23 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 the Korean-American community in Los Angeles. Saehan Bancorp is committed to satisfying customers and creating shareholder value. Its ten retail branch offices, International Department, SBA Department and Financial Services 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-Jun
2008 2007
Assets:
Cash & due from banks - demand 22,309 12,122
Due from banks-interest bearing 1,022 5,283
Federal fund sold 45,510 24,675
Securities available-for-sale 46,415 53,721
Loans 756,063 621,969
Less: Allowance for loan losses 11,046 6,222
Net loans 745,017 609,525
Loans held for sale 1,102 3,521
Bank premises and equipment, net 6,913 6,558
Other assets 20,427 16,231
Total assets 888,715 731,636
 
Liabilities and stockholders' equity:
Deposits:
Noninterest bearing demand 142,181 122,735
Interest bearing demand and savings 164,158 157,424
Time deposits 386,373 280,651
Total deposits 692,712 560,810
Other liabilities 135,154 113,518
Total liabilities 827,866 674,328
Total stockholders' equity 60,849 57,308

Total liabilities and stockholders' equity

888,715 731,636
Book value per share 5.04 4.75
Period end shares outstanding 12,053,454 12,053,139
Nonperforming loans 26,702 3,003
 
Tier I leverage ratio 9.61 % 11.80 %
Tier 1 risk-based capital ratio 9.98 % 11.51 %

Total risk-based capital ratio

11.23 % 12.51 %
Saehan Bancorp
Condensed Income Statement and Comprehensive Income
(Dollars in thousands except per share data)
               
For the three For the six
months ended months ended
30-Jun 30-Jun
  2008     2007     2008     2007  
Interest income:
Interest and fees on loans 12,771 13,666 26,212 25,981
Interest on securities 476 560 1,002 1,134
Interest on federal funds sold 46 46 138 70
Other interest income 91 10 192 20
Total interest income 13,384 14,282 27,544 27,205
Interest expense:
Deposit 5,190 5,008 10,926 9,871
Other 1,206 1,401 2,498 2,223
Total interest expenses 6,396 6,409 13,424 12,094

Net interest income before provision for loan losses

6,988 7,873 14,120 15,111
Provision for loan lossses 4,907 306 5,988 966
Non-interest income:
Service charges on deposit accounts 637 560 1,237 1,036
Gain on sale of loans 271 2,135 465 3,119
Other operating income 551 701 1,171 1,200
Total non-interest income 1,459 3,396 2,873 5,355
Non-interest expense:
Salaries and employee benefits 3,329 4,143 6,681 7,949
Net occupancy and equipment expense 1,285 984 2,437 1,926
Other operating expense 1,539 2,085 2,996 3,753
Total non-interest expenses 6,153 7,212 12,114 13,628
Income before income taxes (2,613 ) 3,751 (1,109 ) 5,872
Income taxes (1,004 ) 1,622 (425 ) 2,391

Income before extraordinary items

(1,609 ) 2,129 (684 ) 3,481
Extraordinary items, net of taxes - - - -
Net income (1,609 ) 2,129 (684 ) 3,481
Net income per share -
Basic $ (0.13 ) $ 0.18 $ (0.06 ) $ 0.29
Diluted $ (0.13 ) $ 0.17 $ (0.06 ) $ 0.28
 
Basic average common shares
outstanding 12,053,594 12,003,107 12,053,595 11,990,091
Diluted average common shares
outstanding 12,066,580 12,175,260 12,066,316 12,232,788
 
Charge offs 2,197 - 3,241 231
Recoveries 25 5 50 9
 
For the three For the six
months ended months ended
30-Jun 30-Jun
  2008     2007     2008     2007  
Key Operating Ratios:
Return on average assets -0.77 % 1.22 % -0.17 % 1.03 %
Return on average equity -10.23 % 15.18 % -2.18 % 12.95 %
Yield on earning assets 6.65 % 8.51 % 6.91 % 8.44 %
Cost on interest bearing liabilities 4.14 % 5.88 % 4.26 % 5.74 %
Net interest margin 3.47 % 4.69 % 3.54 % 4.69 %
Cost of funds 3.38 % 4.62 % 3.56 % 4.49 %
Efficiency ratio 72.84 % 64.00 % 71.29 % 66.59 %

Contact:
Saehan Bancorp
Daniel Kim
Senior Vice President & Chief Financial Officer
213-637-4802
or
Maier & Company, Inc.
Gary S. Maier, 310-442-9852
2008/05/29 Stock Dividend
SAEHAN BANCORP DECLARES A 8% STOCK DIVIDEND

LOS ANGELES, CALIFORNIA– May 29, 2008 -- Saehan Bancorp (OTCBB:SAEB), parent company of Saehan Bank, today announced that its board of directors has declared a 8 percent stock dividend, payable on June 26, 2008 to shareholders of record on June 10, 2008. Under the dividend, shareholders will receive .08 share of common stock for each share of common stock held as of the record date. A cash payment will be made to shareholders for any fractional shares resulting from the dividend calculation.

Contact:
Saehan Bancorp
Daniel Kim, 213-637-4802
or
Maier & Company, Inc.
Gary S. Maier, 310-442-9852
2008/05/06 Saehan Bancorp Reports First Quarter Results
SAEHAN BANCORP REPORTS FIRST QUARTER RESULTS

LOS ANGELES, CALIFORNIA -- May 6, 2008 -- Saehan Bancorp (OTCBB:SAEB) today reported results for its first quarter ended March 31, 2008.?
Net income for the first quarter of 2008 was $925,000, or $0.06 per diluted share, compared with $1.4 million, or $0.12 per diluted share a year ago.? The return on average equity for the first quarter of 2008 was 5.93 percent and the return on average assets was 0.46 percent compared with 10.52 percent and 0.84 percent, respectively, for the first quarter of 2007.?

Other highlights for the first quarter of 2008 included:

  • Total assets increased $184.9 million, or 27.3 percent from the same period a year ago.
  • Net loans increased $154.8 million, or 27.0 percent, over the same period a year ago.
  • Total deposits increased $124.0 million, or 23.0 percent, over a year ago.
  • Net interest margin was 3.64 percent, compared with 4.67 percent for the first quarter of 2007.
  • Efficiency ratio remained the same at 69.8 percent, compared with the first quarter of 2007.
  • The ratio of nonperforming loans to net loans was 2.17 percent compared with 0.41 percent at March 31, 2007.
  • Noninterest income was $1.4 million, compared with $2.0 million for the first quarter of 2007.
  • Noninterest expense was $6.0 million, compared with $6.4 million for the first quarter of 2007.

?¡°First quarter results reflect the impact of a challenging economic environment¡± said Benjamin Hong, president and chief executive officer.? ¡°Despite the difficult operating environment, management continues to focus on the execution and implementation of its long-term strategic plan.? The bank achieved its loan and deposit growth targets as planned, but the profitability suffered due to the adversarial interest rate environment.¡±

Net interest income before provision for loan losses was $7.1 million in the first quarter of 2008 compared with $7.2 million in the same period a year ago.? Net interest margin for the first quarter of 2008 was 3.64 percent compared with 4.67 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 the quarter and the increase in non-accrual loans in the first quarter of 2008.
Noninterest income in the first quarter of 2008 totaled $1.4 million, compared with $2.0 million a year ago.? The reduction was primarily attributable to a $790,000 decrease in gain on sale of loans, partially offset by a $124,000 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 2008 was $6.0 million, a decrease of $455,000 from the first quarter last year.? The decrease in noninterest expense for the first quarter of 2008 was primarily attributable to lower employee compensation expense, partially offset by higher occupancy and equipment expenses.? The efficiency ratio for the first quarter of 2008 was 69.8 percent compared with 69.8 percent in the first quarter of 2007.?
Nonperforming loans were $15.6 million at March 31, 2008 up $13.3 million from $2.4 million at March 31, 2007.? Nonperforming loans represented 1.82 percent of total assets at March 31, 2008.? The provision for loan losses was $1.1 million for the first quarter of 2008 compared with $660,000 a year ago.?
Total assets were $861.3 million as of March 31, 2008-- representing an increase of $184.9 million, or 27.3 percent, over the $676.4 million in total assets reported on March 31, 2007.? Total deposits as of March 31, 2008 increased $124.0 million, or 23.0 percent, to $662.4 million from $538.4 million as of March 31, 2007.
Shareholders equity increased to $62.6 million at March 31, 2008 from $54.4 million at March 31, 2007. Shareholders equity primarily increased as a result of the company earnings and exercise of stock options. Capital ratios continue to be well above the ¡°Well-Capitalized¡± guidelines established by the regulatory agencies. The Leverage Ratio was 10.31 percent, the Tier 1 Risk-based Capital Ratio was 10.63 percent and the Total Risk-based Capital Ratio was 11.75 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 the Korean-American community in Los Angeles.? Saehan Bancorp is committed to satisfying customers and creating shareholder value. Its ten retail branch offices, International Department, SBA Department and Financial Services 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
2008
2007
Assets:
Cash & due from banks - demand
20,594
11,425
Due from banks-interest bearing
1,022
3,979
Federal fund sold
43,745
10,540
Securities available-for-sale
47,897
55,161
Loans
728,568
573,729
Less: Allowance for loan losses
8,311
5,911
Net loans
720,257
567,818
Loans held for sale
3,208
7,656
Bank premises and equipment, net
7,086
6,449
Other assets
17,472
13,333
Total assets
861,281
676,361
Liabilities and stockholders' equity:
Deposits:
Noninterest bearing demand
130,756
120,615
Interest bearing demand and savings
155,754
151,600
Time deposits
375,897
266,228
Total deposits
662,407
538,443
Jr. Subordinated debenture
20,619
20,619
Other borrowed money
110,280
57,000
Other liabilities
5,389
5,860
Total liabilities
798,695
621,922
Total stockholders' equity
62,586
54,439
Total liabilities and
stockholders' equity
861,281
676,361
Book value per share
5.60
4.90
Period end shares outstanding
11,160,737
11,089,824
Nonperforming loans
15,642
2,356
Tier I leverage ratio
10.31%
11.32%
Tier 1 risk-based capital ratio
10.63%
12.02%
Total risk-based captal ratio
11.75%
13.33%
Saehan Bancorp
Condensed Income Statement and Comprehensive Income
(Dollars in thousands except per share data)
For the three
months ended
March 31
2008
2007
Interest income:
Interest and fees on loans
13,441
12,315
Interest on securities
526
574
Interest on federal funds sold
92
24
Other interest income
101
10
Total interest income
14,160
12,923
Interest expense:
Deposit
5,736
4,863
Other
1,292
822
Total interest expenses
7,028
5,685
Net interest income before
Provision for loan lossses
7,132
7,238
Provision for loan lossses
1,081
660
Non-interest income:
Service charges on deposit accounts
600
476
Gain on sale of loans
194
984
Gain on sale of investment securities
-
-
Other operating income
620
499
Total non-interest income
1,414
1,959
Non-interest expense:
Salaries and employee benefits
3,352
3,806
Net occupancy and equipment expense
1,152
942
Other operating expense
1,457
1,668
Total non-interest expenses
5,961
6,416
Income before income taxes
1,504
2,121
Income taxes
579
769
Income before extraordianry items
925
1,352
Extraordinary items, net of taxes
-
-
Net income
925
1,352
Net income per share -
Basic
$0.06
$0.12
Diluted
$0.06
$0.12
Basic average common shares
outstanding
11,160,737
11,089,750
Diluted average common shares
outstanding
11,172,270
11,249,151
Charge offs
1,044
231
Recoveries
25
4
For the three
months ended
March 31
2008
2007
Key Operating Ratios:
Return on average assets
0.46%
0.84%
Return on average equity
5.93%
10.52%
Yield on earning assets?
7.24%
8.34%
Cost on interest bearing liabilities
4.53%
4.83%
Net interest margin
3.64%
4.67%
Cost of funds
3.80%
3.88%
Efficiency ratio
69.75%
69.76%

Contact:
Saehan Bancorp
Daniel Kim, 213-637-4802
or
Maier & Company, Inc.
Gary S. Maier, 310-442-9852
 
2008/03/01 Saehan Bancorp And Subsidiary Consolidated Financial Statement December 31, 2007 and 2006
2008/02/03 Saehan Bancorp Reports Second Quarter Results
SAEHAN BANCORP REPORTS SECOND QUARTER RESULTS
Thursday Febrary 3, 11:00 am ET LOS ANGELES--(BUSINESS WIRE)--Saehan Bancorp (OTCBB:SAEB - News) today announced results for its fourth quarter and year ended December 31, 2007, reflecting strong continued asset growth in a challenging economic environment.

Net income for the fourth quarter of 2007 was $1.4 million, or $0.12 per diluted share, compared with $1.4 million, or $0.12 per diluted share, a year earlier. The return on average common equity for the same period was 9.0 percent and the return on average assets was 0.69 percent, compared with 10.5 percent and 0.91 percent, respectively, for the fourth quarter of 2006.

For the full year, Saehan reported net income of $6.6 million, or $0.59 per diluted share, compared with $6.2 million, or $0.54 per diluted share a year earlier. The return on average common equity for 2007 was 11.7 percent and the return on average assets was 0.92 percent, compared with 12.0 percent and 1.03 percent, respectively, for 2006.

Additional highlights at December 31, 2007 and for the fourth quarter of 2007 include:

  • Total assets at December 31, 2007 increased 31.2 percent to $823.6 million from $628.0 million a year ago.
  • Net loans increased 31.8 percent to $687.6 million at December 31, 2007 from $521.7 million last year.
  • Total deposits at December 31, 2007 increased 22.4 percent to $639.7 million from $522.5 million at December 31, 2006.
  • Net interest margin for the fourth quarter of 2007 decreased to 4.05 percent from the 4.68 percent reported in the fourth quarter of 2006.
  • Efficiency for the fourth quarter of 2007 improved to 54.2 percent from 64.9 percent in the fourth quarter of 2006.
  • The ratio of nonperforming loans to total assets at December 31, 2007 increased to 1.17 percent from 0.24 percent at December 31, 2006.

“Saehan achieved steady growth in the fourth quarter of 2007 derived from its core banking relationships and focus on risk management. Despite a challenging economic environment impacted by a housing slow down, rising energy costs and declining interest rates, Saehan is well positioned and committed to making quality loans and providing innovative products and services to our customers in 2008,”said Benjamin Hong, president and chief executive officer.

Net interest income before provision for loan losses was $7.8 million in the fourth quarter of 2007 compared with $6.8 million in the fourth quarter of 2006. For the fourth quarter of 2007, net interest margin was 4.05 percent compared with 4.68 percent in the fourth quarter of 2006. For the full year, net interest income and the net interest margin before provision for loan losses were $30.5 million and 4.39 percent, respectively, compared with $25.5 million and 4.78 percent, respectively, for 2006. The decrease in the net interest margin from the same quarter a year ago was primarily a result of a lag in the repricing of certain deposit products, such as certificates of deposits and money market accounts.

Noninterest income in the fourth quarter of 2007 totaled $1.8 million compared with $1.9 million in the fourth quarter of 2006. For the full year, noninterest income was $9.0 million, up 30.8 percent from $6.9 million reported in 2006. The increase in noninterest income is primarily attributable to the $1.7 million increase in gain on sale of loans.

Noninterest expense for the fourth quarter of 2007 was $5.1 million, a decrease of $454,000 from the fourth quarter of 2006. For the full year, noninterest expense was $25.2 million compared with $20.8 million in 2006. The increase in noninterest expense for the full year of 2007 is primarily attributable to higher employee salaries and benefits, and higher occupancy and equipment expenses related to the bank’s expansion initiatives.

The efficiency ratio for the fourth quarter of 2007 was 54.2 percent compared with the fourth quarter of 2006 at 64.9 percent. For the year 2007, the efficiency ratio was 63.6 percent compared with 64.2 percent for 2006.

Nonperforming loans and OREO were $9.7 million at December 31, 2007, compared with $1.5 million at December 31, 2006. Nonperforming assets represented 1.17 percent of total assets at December 31, 2007. The provision for loan losses was $2.2 million for the fourth quarter of 2007 compared with $570,000 for the year ago quarter. For the year 2007, the provision for loan losses was $3.4 million, compared with the provision for loan losses of $1.4 million for 2006.

Shareholders’ equity totaled $61.4 million at December 31, 2007 -- an increase of $8.5 million compared with $52.9 million at December 31, 2006. Shareholders equity primarily increased as a result of the companys earnings and the exercise of stock options. Capital ratios continue to be above the Well-Capitalized guidelines established by the regulatory agencies. The Leverage Ratio was 10.2 percent, the Tier 1 Risk-based Capital Ratio was 11.0 percent and the Total Risk-based Capital Ratio was 12.1 percent at December 31, 2007.

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 the Korean-American community in Los Angeles. Saehan Bancorp is committed to satisfying customers and creating shareholder value. Its ten retail branch offices, International Department, SBA Department, and Financial Services 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)
31-Dec
2007 2006
Assets:
Cash & due from banks - demand 14,427 13,537
Due from banks-interest bearing 4,899 5,168
Federal fund sold 37,430 11,785
Securities available-for-sale 52,681 56,065
Loans 695,263 526,948
Less: Allowance for loan losses 7,704 5,223
Net loans 687,559 521,725
Loans held for sale 761 2,942
Bank premises and equipment, net 6,800 5,954
Other assets 19,081 10,859
Total assets 823,638 628,035
Liabilities and stockholders' equity:
Deposits:

Noninterest bearing demand

119,815 122,873
Interest bearing demand and savings 156,669 126,994
Time deposits 363,174 272,593
Total deposits 639,658 522,460
Other borrowed money 96,500 47,000

Junior subordinated debenture

20,619 -
Other liabilities 5,453 5,673
Total liabilities 762,230 555,133
Total stockholders' equity 61,408 52,902

Total liabilities and stockholders' equity

823,638 628,035
Book value per share 5.50 4.77
Period end shares outstanding 11,160,737 11,089,574
Nonperforming loans 9,652 1,502
Tier I leverage ratio 10.21 % 8.83 %
Tier 1 risk-based capital ratio 11.00 % 9.67 %

Total risk-based capital ratio

12.08 % 10.64 %
Saehan Bancorp
Condensed Income Statement and Comprehensive Income
(Dollars in thousands except per share data)
For the three

For the twelve

months ended months ended
31-Dec 31-Dec
2007 2006 2007 2006
Interest income:
Interest and fees on loans 14,549 11,369 54,428 39,838
Interest on securities 540 570 2,224 2,247
Interest on federal funds sold 39 149 212 878
Other interest income 28 66 66 232
Total interest income 15,156 12,154 56,930 43,195
Interest expense:
Deposit 5,605 5,074 21,068 16,316
Other 1,789 314 5,320 1,414
Total interest expenses 7,394 5,388 26,388 17,730

Net interest income before provision for loan losses

7,762 6,766 30,542 25,465

Provision for loan losses

2,206 570 3,438 1,366
Non-interest income:
Service charges on deposit accounts 623 465 2,279 2,166
Gain on sale of loans 439 849 4,140 2,456
Gain on sale of investment securities - - - -
Other operating income 689 563 2,603 2,278
Total non-interest income 1,751 1,877 9,022 6,900
Non-interest expense:
Salaries and employee benefits 2,697 3,596 14,473 12,610
Net occupancy and equipment expense 1,185 772 4,223 2,892
Other operating expense 1,272 1,240 6,467 5,262
Total non-interest expenses 5,154 5,608 25,163 20,764
Income before income taxes 2,153 2,465 10,963 10,235
Income taxes 784 1,096 4,327 4,079

Income before extraordinary items

1,369 1,369 6,636 6,156
Extraordinary items, net of taxes - - - -
Net income 1,369 1,369 6,636 6,156
Net income per share -
Basic $ 0.12 $ 0.12 $ 0.60 $ 0.56
Diluted $ 0.12 $ 0.12 $ 0.59 $ 0.54

Basic average common shares outstanding

11,160,575 11,089,574 11,131,460 11,057,446

Diluted average common shares outstanding

11,176,809 11,858,009 11,226,956 11,411,365
Charge offs 997 323 1,228 766
Recoveries (3 ) 85 16 191
For the three For the tweleve
months ended months ended
31-Dec 31-Dec
2007 2006 2007 2006
Key Operating Ratios:
Return on average assets 0.69 % 0.91 % 0.92 % 1.03 %
Return on average equity 8.96 % 10.50 % 11.67 % 11.98 %
Earning assets yield 7.90 % 8.41 % 8.18 % 8.10 %

Interest rate on interest bearing liabilities

4.87 % 4.69 % 4.91 % 4.19 %
Net interest margin 4.05 % 4.68 % 4.39 % 4.78 %
Cost of funds 4.06 % 3.95 % 4.01 % 3.57 %
Efficiency ratio 54.18 % 64.88 % 63.60 % 64.16 %

Average stockholders' equity to average total assets

7.66 % 8.63 % 7.86 % 8.85 %

Contact:
Saehan Bancorp
Daniel Kim, 213-637-4802
or
Maier & Company, Inc.
Gary S. Maier, 310-442-9852
 
       
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