LOS ANGELES--(BUSINESS WIRE)--Aug. 4,
2005--Saehan Bancorp (OTCBB:SAEB
-
News) today reported solid financial
performance for its second quarter ended
June 30, 2005, reflecting continued
strength of its loan and deposit
activity with high quality assets.
Net income for the second quarter
climbed 30.5% to $1.7 million, or $0.35
per diluted share, from $1.3 million, or
$0.28 per diluted share, a year earlier.
The return on average equity for the
second quarter of 2005 was 17.24 percent
and the return on average assets was
1.60 percent, compared with 15.52
percent and 1.75 percent, respectively,
for the second quarter of 2004.
Other highlights for the second
quarter of 2005 included:
-
Non-interest bearing demand
deposits increased $20.0 million, or
22.4 percent compared with those at
June 30, 2004 -- representing 30.1
percent of total deposits at quarter
end.
-
Net loans increased $129.3
million, or 54.3 percent, over the
same period a year ago.
-
Total deposits increased $104.8
million, or 40.4 percent, over a
year ago.
-
Net interest margin increased to
5.03 percent from the 4.44 percent
reported in the second quarter of
2004.
-
Efficiency improved to 56.11
percent from 57.50 percent in the
second quarter of 2004.
-
The ratio of nonperforming loans
to net loans was 0.09 percent
compared with 0.12 percent at June
30, 2004.
"Saehan's strong financial
performance for the second quarter was
primarily attributable to a 54 percent
increase in loans, a 40 percent increase
in deposits and an ability to continue
to maintain a high-quality asset base,"
said Joohak Kim, President and Chief
Executive Officer. "We are encouraged by
the recent increases in the Fed Funds
rate, and believe that Saehan is well
positioned to benefit from this activity
moving forward," Kim added.
Net interest income before provision
for loan losses was $5.1 million in the
second quarter of 2005 compared with
$3.1 million in the second quarter of
2004. Net interest margin for the second
quarter of 2005 was 5.03 percent, up
from 4.44 percent in the second quarter
of 2004. Net interest income increased
63.1 percent, primarily due to the
$111.1 million increase in average loans
and the 200 basis point increase in
prime rates. Cost of funds in the second
quarter of 2005 was 1.94 percent,
compared with 1.16 percent in the second
quarter of 2004.
Non-interest income in the second
quarter of 2005 remained the same at
$2.4 million, compared with the second
quarter of 2004. The $342,000 decrease
in gain on sale of SBA loans was offset
by the $224,000 increase in service
charges on deposit accounts and the
$142,000 in other operating income.
Non-interest expense for the second
quarter of 2005 was $4.2 million, an
increase of $1.0 million from the second
quarter of 2004. The increase in
non-interest expense for the second
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 second
quarter of 2005 was 56.1 percent
compared with 57.5 percent in the second
quarter of 2004.
Nonperforming loans were $365,000 at
June 30, 2005 -- up $82,000 from
$283,000 at June 30, 2004. Nonperforming
loans and OREO represented 0.08 percent
of total assets at June 30, 2005. The
provision for loan losses was $350,000
for the second quarter of 2005 compared
with $50,000 a year ago.
Total assets were $456.6 million as
of June 30, 2005, representing an
increase of $149.9 million, or 48.9
percent, over the $306.7 million in
total assets reported on June 30, 2004.
Total deposits as of June 30, 2005
increased $104.8 million, or 40.4
percent, to $364.1 million from $259.3
million as of June 30, 2004.
Shareholders' equity totaled $40.6
million at June 30, 2005, an increase of
$6.9 million compared to $33.7 million
at June 30, 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 9.54%, the Tier 1
Risk-based Capital Ratio was 10.29% and
the Total Risk-based Capital Ratio was
11.42% as of June 30, 2005.
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 seven 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
2005 2004
Assets:
Cash & due from banks - demand 11,517 11,465
Due from banks - interest bearing 6,018 1,616
Federal fund sold 3,085 7,990
Securities available-for-sale 46,440 37,862
Loans 371,723 241,500
Less: Allowance for loan losses 4,350 3,453
Net loans 367,373 238,047
Loans held for sale 9,269 -
Bank premises and equipment, net 2,718 1,772
Other assets 10,179 7,926
Total assets 456,599 306,678
Liabilities and stockholders' equity:
Deposits:
Non-interest bearing demand 109,556 89,541
Interest bearing demand and savings 111,513 103,287
Time deposits 143,008 66,474
Total deposits 364,077 259,302
Other liabilities 48,809 13,722
Total liabilities 416,031 273,024
Total stockholders' equity 40,568 33,654
Total liabilities and
stockholders' equity 456,599 306,678
Book value per share 8.59 8.15
Period end shares outstanding 4,720,660 4,125,217
Nonperforming loans 365 283
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
---------- ---------- ---------- ----------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Interest income:
Interest and fees on
loans 6,442 3,572 11,677 7,189
Interest on securities 476 302 913 649
Interest on federal
funds sold 17 8 54 17
Other interest income 27 13 49 29
Total interest income 6,962 3,895 12,693 7,884
Interest expense:
Deposit 1,559 740 2,774 1,505
Other 287 18 460 40
Total interest expenses 1,846 758 3,234 1,545
Net interest income
before provision for
loan losses 5,116 3,137 9,459 6,339
Provision for loan
losses 350 50 720 137
Non-interest income:
Service charges on
deposit accounts 862 638 1,554 1,224
Gain on sale of loans 960 1,302 1,490 1,918
Gain on sale of
investment securities - - - -
Other operating income 588 446 1,114 846
Total non-interest
income 2,410 2,386 4,158 3,988
Non-interest expense:
Salaries and employee
benefits 2,324 1,749 4,377 3,483
Net occupancy and
equipment expense 590 389 1,095 760
Other operating expense 1,309 1,038 2,476 1,882
Total non-interest
expenses 4,223 3,176 7,948 6,125
Income before income
taxes 2,953 2,297 4,949 4,065
Income taxes 1,251 993 2,022 1,727
Income before
extraordinary items 1,702 1,304 2,927 2,338
Extraordinary items,
net of taxes - - - -
Net income 1,702 1,304 2,927 2,338
Net income per share -
Basic $0.36 $0.29 $0.62 $0.52
Diluted $0.35 $0.28 $0.60 $0.50
Basic average common
shares outstanding 4,720,623 4,530,089 4,709,505 4,526,631
Diluted average common
shares outstanding 4,866,789 4,718,846 4,863,297 4,711,812
Charge offs 65 49 141 141
Recoveries 167 15 331 25
For the three For the six
months ended months ended
30-Jun 30-Jun
---------- ---------- ---------- ----------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Key Operating Ratios:
Return on average assets 1.60% 1.75% 1.46% 1.58%
Return on average equity 17.24% 15.52% 15.06% 14.23%
Yield on earning assets 6.85% 5.51% 6.69% 5.69%
Cost on interest bearing
liabilities 2.66% 1.75% 2.86% 1.75%
Net interest margin 5.03% 4.44% 4.98% 4.57%
Cost of funds 1.94% 1.16% 1.79% 1.19%
Efficiency ratio 56.11% 57.50% 58.37% 59.31%
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