| Saehan Bancorp Reports 34% Increase
in 2003 Third Quarter Earnings
Wednesday November 12, 2003 8:30 pm ET
LOS ANGELES, Nov. 12, 2003 (PRIMEZONE) -- Saehan Bancorp (OTC
BB:SAEB.OB - News), parent company of Saehan Bank, today reported
net income of $1.2 million for the third quarter of 2003,
up from $0.9 million for the third quarter of 2002. Third
quarter 2003 diluted earnings per share increased 17% to $0.28
from $0.24 for the third quarter of 2002. Return on average
equity for the third quarter of 2003 was 16.48% and return
on assets was 1.76%, compared to 14.33% and 1.42%, respectively,
in the third quarter of 2002.
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"Outstanding credit quality and our ability to capitalize
on even slight opportunities continue to be important factors
in our earnings improvement,'' said Joohak Kim, President
and CEO. "We are seeing encouraging results on almost every
front, including higher SBA loan sales, average core deposit
balances and loan production. We experience minimal gross
charge-offs with a high loan growth rate, a reflection of
our unique ability to manage credit risk rather than avoid
it.''
Income
Net interest income before provision for loan losses was
$2.5 million in the third quarter of 2003 compared to $2.6
million in the third quarter of 2002. The third quarter of
2003 net interest margin was 3.79%, down from 4.34% in the
third quarter of 2002. Declining interest rates have primarily
resulted in an operating environment with declining net interest
margins.
Noninterest income in the third quarter of 2003 totaled $2.0
million, compared to $1.8 million in the third quarter of
2002. In comparison to the third quarter of 2003, the third
quarter of 2002 includes noninterest income generated from
Prime Business Credit, Inc., a Company's subsidiary sold on
September 30, 2002. In addition, the third quarter of 2003
benefited from gain on sale of SBA loans offset in part by
lower service charges on deposit accounts.
Expenses
Noninterest expense for the third quarter of 2003 was $2.5
million, a decrease of $0.5 million from the third quarter
of 2002. In addition to the subsequent cost reduction from
the sale of Prime Business Credit, Inc., the decrease is also
due to lower employee salaries and benefits and offset in
part by higher occupancy and equipment expenses. The efficiency
ratio for the third quarter of 2003 was 55.3%, compared to
the third quarter of 2002 at 66.9%.
The provision for loan losses was $40 thousand for the third
quarter of 2003, increased from $28 thousand for the third
quarter of 2002.
Credit Quality
Continuing the Company's established trend of strong credit
quality, NPLs decreased to $1.9 million or 0.90% of total
gross loans at September 30, 2003. This is down from $2.2
million or 1.20% of gross loans at September 30, 2002. The
Company's aggressive management of charge-offs and NPLs allowed
it to slightly reduce the allowance for loan losses to $3.43
million or 1.63% of total gross loans and 181.6% of NPLs at
September 30, 2003. This compared to $3.44 million or 1.85%
of total gross loans and 153.2% at September 30, 2002.
Assets and Deposits
Total assets were $280.0 million as of September 30, 2003.
This represents an increase of $21.8 million, or 8.46%, over
the $258.2 million in total assets reported on September 30,
2002. Total deposits increased to $247.7 million as of September
30, 2003. This is up $17.7 million, or 7.70%, from $230.0
million as of September 30, 2002.
Shareholders' Equity
Shareholders' equity totaled $30.7 million at September 30,
2003, an increase of $4.7 million compared to $26.0 million
at September 30, 2002. Shareholders' equity primarily increased
as a result of the Company's earnings and exercises of stock
options and warrants. Both Saehan Bancorp and Saehan Bank's
capital ratios were in excess of regulatory guidelines for
classification as a well-capitalized depository institution
as of September 30, 2003.
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 Bankcorp is committed to satisfying customers and
creating shareholder value. Our six retail branch offices,
International Department and SBA Department of Saehan Bank
focus on fulfilling these commitments to customers and shareholders.
Saehan Bankcorp is traded on the OTC Bulletin Board under
the ticker symbol "SAEB.OB."
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."
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Contact:
Saehan Bancorp
Daniel Kim, 213-637-4802
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