LOS ANGELES--(BUSINESS WIRE)--May 10,
2005--Saehan Bancorp (OTCBB:SAEB
-
News) today reported strong results
for its first quarter ended March 31,
2005, supported by favorable short-term
interest rates and increased loan
portfolio activity.
Net income for the first quarter
climbed to $1.2 million, or $0.25 per
diluted share, from $1.0 million, or
$0.22 per diluted, a year earlier. The
return on average equity for the first
quarter of 2005 was 12.83 percent and
the return on average assets was 1.30
percent, compared with 12.88 percent and
1.40 percent, respectively, for the
first quarter of 2004.
Other highlights for the first
quarter of 2005 included:
-
Noninterest bearing demand
deposits increased $11.7 million, or
13.6 percent compared with those at
March 31, 2004, and represented 30.1
percent of total deposits at quarter
end.
-
Net loans increased $77.8
million, or 33.2 percent, over the
same period a year ago.
-
Total deposits increased $62.9
million, or 24.0 percent, over a
year ago.
-
Net interest margin increased to
4.78 percent from the 4.55 percent
reported in the first quarter of
2004.
-
Efficiency improved to 61.16
percent from 61.39 percent in the
first quarter of 2004.
-
The ratio of nonaccrual loans to
net loans was 0.22 percent compared
with 0.24 percent at March 31, 2004.
-
Noninterest income increased
$146,000 to $1.7 million compared
with $1.6 million for the first
quarter of 2004.
-
Noninterest expense increased
$776,000 to $3.7 million compared
with $2.9 million for the first
quarter of 2004.
"The rise in short-term interest
rates and the increase in loan portfolio
had a positive effect on our bottom
line," said Joohak Kim, President and
Chief Executive Officer. "We expect to
continue to realize sequential quarterly
improvement, assuming continued loan
demand."
Net interest income before provision
for loan losses was $4.3 million in the
first quarter of 2005 compared with $3.2
million in the same period a year ago.
Net interest margin for the first
quarter of 2005 was 4.78 percent, up
from 4.55 percent in the first quarter
of 2004. Net interest income increased
35.6 percent, primarily due to the $67.8
million increase in average loans and
the 74 basis point increase in yield on
average earnings assets. Cost of funds
in the first quarter of 2005 was 1.67
percent compared with 1.23 percent in
the first quarter of 2004.
Noninterest income in the first
quarter of 2005 totaled $1.7 million
compared with $1.6 million in the first
quarter of 2004. The increase from the
year ago quarter is primarily
attributable to the $106,000 increase in
service charges on deposit accounts,
partially offset by a slight decrease in
gain on sale of loans.
Noninterest expense for the first
quarter of 2005 was $3.7 million, an
increase of $776,000 from the first
quarter of 2004. The increase in
noninterest expense for the first
quarter of 2005 over the same period a
year ago is attributable to higher
employee salaries and benefits, and
higher occupancy and equipment expenses.
The efficiency ratio for the first
quarter of 2005 was 61.2 percent
compared with 61.4 percent in the first
quarter of 2004.
Nonperforming loans were $679,000 at
March 31, 2005 up $134,000 from $545,000
at March 31, 2004. Nonperforming loans
and OREO represented 0.17 percent of
total assets at March 31, 2005. The
provision for loan losses was $370,000
for the first quarter of 2005 compared
with $87,000 a year ago.
Total assets were $397.4 million as
of March 31, 2005, representing an
increase of $98.6 million, or 33.0
percent, over the $298.8 million in
total assets reported on March 31, 2004.
Total deposits as of March 31, 2005
increased $62.9 million, or 24.0
percent, to $397.4 million from $298.8
million as of March 31, 2004.
Shareholders' equity totaled $38.5
million at March 31, 2005, an increase
of $5.6 million compared with $32.9
million at March 31, 2004. Shareholders'
equity primarily increased as a result
of the company's earnings and exercises
of stock options and warrants. Capital
ratios continue to be well above the
"Well-Capitalized" guidelines
established by the regulatory agencies.
The Leverage Ratio was 10.32 percent,
the Tier 1 Risk-based Capital Ratio was
11.40 percent and the Total Risk-based
Capital Ratio was 12.57 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 six 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
---------------------
2005 2004
---------- ----------
Assets:
Cash & due from banks - demand 8,960 10,161
Due from banks-interest bearing 5,547 1,718
Federal fund sold 3,570 13,320
Securities available-for-sale 50,386 35,281
Loans 311,868 234,117
Less: Allowance for loan losses 3,898 3,437
Net loans 307,970 230,680
Loans held for sale 7,163 680
Bank premises and equipment, net 2,553 1,709
Other assets 11,207 5,211
Total assets 397,356 298,758
Liabilities and stockholders' equity:
Deposits:
Noninterest bearing demand 97,832 86,129
Interest bearing demand and savings 105,623 102,002
Time deposits 121,937 74,340
Total deposits 325,392 262,471
Other borrowed money 27,000 -
Other liabilities 6,484 3,411
Total liabilities 358,876 265,882
Total stockholders' equity 38,480 32,876
Total liabilities and
stockholders' equity 397,356 298,758
Book value per share 8.16 7.99
Period end shares outstanding 4,714,342 4,113,214
Nonperforming loans 679 545
Tier I leverage ratio 10.32% 10.89%
Tier 1 risk-based capital ratio 11.40% 12.06%
Total risk-based capital ratio 12.57% 13.20%
Saehan Bancorp
Condensed Income Statement and Comprehensive Income
(Dollars in thousands except per share data)
For the
three months ended
March 31
---------------------
2005 2004
---------- ----------
Interest income:
Interest and fees on loans 5,235 3,617
Interest on securities 437 347
Interest on federal funds sold 37 9
Other interest income 22 16
Total interest income 5,731 3,989
Interest expense:
Deposit 1,215 765
Other 173 22
Total interest expenses 1,388 787
Net interest income before
provision for loan losses 4,343 3,202
Provision for loan losses 370 87
Non-interest income:
Service charges on deposit accounts 692 586
Gain on sale of loans 530 616
Gain on sale of investment securities - -
Other operating income 526 400
Total non-interest income 1,748 1,602
Non-interest expense:
Salaries and employee benefits 2,053 1,734
Net occupancy and equipment expense 505 371
Other operating expense 1,167 844
Total non-interest expenses 3,725 2,949
Income before income taxes 1,996 1,768
Income taxes 771 734
Minority interest
Income before extraordinary items 1,225 1,034
Extraordinary items, net of taxes - -
Net income 1,225 1,034
Net income per share -
Basic $0.26 $0.23
Diluted $0.25 $0.22
Basic average common shares
outstanding 4,696,159 4,522,441
Diluted average common shares
outstanding 4,865,565 4,656,863
Charge offs 76 67
Recoveries 164 36
For the
three months ended
March 31
---------------------
2005 2004
---------- ----------
Key Operating Ratios:
Return on average assets 1.30% 1.40%
Return on average equity 12.83% 12.88%
Yield on earning assets 6.31% 5.66%
Cost on interest bearing liabilities 2.31% 1.75%
Net interest margin 4.78% 4.55%
Cost of funds 1.67% 1.23%
Efficiency ratio 61.16% 61.39%
