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

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 - Southwest, Bank 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.)

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

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

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

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.”