LOS ANGELES--(BUSINESS
WIRE)--Oct. 26,
2005--Saehan Bancorp (OTCBB:SAEB
-
News) today
announced record profits
for its third quarter
and nine months ended
September 30, 2005,
reflecting ongoing
strength of its deposit
and loan growth
activities.
Net income for the
third quarter climbed
53.8 percent to $2.0
million, or $0.39 per
diluted share, from $1.3
million, or $0.26 per
diluted share, a year
earlier. For the
nine-month period, net
income increased 35.4
percent to $4.9 million,
or $0.96 per diluted
share, from $3.6
million, or $0.73 per
diluted share a year
earlier.
Additional highlights
for the third quarter of
2005 included:
-
Total assets
increased $156.6
million, or 46.4
percent, over a year
ago.
-
Net loans
increased $137.9
million, or 53.9
percent, compared
with the same period
last year.
-
Total deposits
increased $117.1
million, or 40.6
percent, over a year
ago.
-
Noninterest
bearing demand
deposits increased
$22.2 million, or
25.0 percent
compared with those
at September 30,
2004 -- representing
27.4 percent of
total deposits at
quarter end.
-
Net interest
margin increased to
5.18 percent from
the 4.46 percent
reported in the
third quarter of
2004.
-
Efficiency
improved to 49.95
percent from 60.82
percent in the third
quarter of 2004.
-
The ratio of
nonperforming loans
to total assets was
0.10 percent
compared with 0.20
percent at September
30, 2004.
"Saehan's performance
for the third quarter
continues to benefit
from higher interest
rates and consistent
loan growth. Our net
interest margin showed
sequential quarterly
improvement, with credit
quality remaining
strong," said Joohak
Kim, president and chief
executive officer. "We
anticipate this trend
will continue, with our
balance sheet benefiting
from expected interest
rate increases at a
measured pace," Kim
added.
Annualized return on
average equity (ROE)
improved to 20.75
percent in the third
quarter of 2005, from
14.99 percent last year.
For the nine months
ended September 30,
2005, ROE improved to
18.61 percent, from
14.52 percent a year
ago. Annualized return
on average assets (ROA)
was 1.71 percent for the
third quarter and 1.55
percent for the first
nine months, compared
with 1.63 percent and
1.60 percent,
respectively in 2004.
Net interest income
before provision for
loan losses was $5.8
million in the third
quarter, compared with
$3.4 million last year,
driven by an increase in
average earning assets
and the prime rate. For
the 2005 nine-month
period, net interest
income was $15.2
million, compared with
$9.7 million in 2004.
Non-interest income
for the quarter also
increased, climbing to
$1.7 million from $1.5
million in the previous
year, and to $5.8
million for the
nine-month period from
$5.4 million a year
earlier. The rise in
non-interest income
primarily resulted from
the increased fee income
generated in deposit
accounts.
Non-interest expense
for the third quarter of
2005 was $3.7 million,
compared with $2.9
million in 2004. For the
nine months,
non-interest expense
increased to $11.7
million from $9.1
million last year. The
increase in non-interest
expense was attributable
to higher employee
salaries and benefits,
and higher occupancy and
equipment expenses. The
efficiency ratio was
50.0 percent for the
quarter and 55.4 percent
for the nine-month
period, compared with
60.8 percent and 59.8
percent, respectively in
2004.
Nonperforming loans
were $476,000 at
September 30, 2005 --
down $214,000 from
$690,000 at September
30, 2004. Nonperforming
loans and OREO
represented 0.10 percent
of total assets at
September 30, 2005.
Shareholders' equity
totaled $42.3 million at
September 30, 2005, an
increase of $6.2
million, compared with
$36.1 million at
September 30, 2004.
Shareholders' equity
primarily increased as a
result of the company's
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 9.19 percent,
the Tier 1 Risk-based
Capital Ratio was 10.32
percent and the Total
Risk-based Capital Ratio
was 11.47 percent as of
September 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, SBA
Department and VIP &
Specialty Banking
Division 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
2005 2004
Assets:
Cash & due from banks - demand 12,346 7,430
Due from banks-interest bearing 4,493 5,654
Federal fund sold 18,265 15,450
Securities available-for-sale 50,400 42,190
Loans 402,916 259,171
Less: Allowance for loan losses 4,647 3,473
Net loans 393,622 255,698
Loans held for sale 2,865 2,497
Bank premises and equipment, net 3,010 2,030
Other assets 9,221 6,639
Total assets 494,222 337,588
Liabilities and stockholders' equity:
Deposits:
Noninterest bearing demand 111,165 88,940
Interest bearing demand and savings 129,530 119,540
Time deposits 165,135 80,248
Total deposits 405,830 288,728
Other liabilities 46,121 12,796
Total liabilities 451,951 301,524
Total stockholders' equity 42,271 36,064
Total liabilities and
stockholders' equity 494,222 337,588
Book value per share 8.52 7.78
Period end shares outstanding 4,958,881 4,629,550
Nonperforming loans 476 690
Tier I leverage 9.19% 11.35%
Tier I risk-based capital 10.32% 12.71%
Total risk-based capital 11.47% 13.96%
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
--------------------- ---------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Interest income:
Interest and fees on
loans 7,617 3,840 19,294 11,029
Interest on securities 442 384 1,355 1,033
Interest on federal funds
sold 64 30 118 46
Other interest income 37 17 86 47
Total interest income 8,160 4,271 20,853 12,155
Interest expense:
Deposit 1,973 852 4,747 2,357
Other 417 42 877 82
Total interest expenses 2,390 894 5,624 2,439
Net interest income
before provision
for loan losses 5,770 3,377 15,229 9,716
Provision for loan
losses 540 - 1,260 137
Non-interest income:
Service charges on
deposit accounts 820 634 2,374 1,858
Gain on sale of loans 244 512 1,734 2,430
Gain on sale of
investment securities - - - -
Other operating income 609 304 1,723 1,150
Total non-interest income 1,673 1,450 5,831 5,438
Non-interest expense:
Salaries and employee
benefits 2,160 1,645 6,537 5,128
Net occupancy and
equipment expense 600 444 1,695 1,204
Other operating expense 958 847 3,434 2,729
Total non-interest
expenses 3,718 2,936 11,666 9,061
Income before income
taxes 3,185 1,891 8,134 5,956
Income taxes 1,196 598 3,218 2,325
Minority interest - - - -
Income before
extraordinary items 1,989 1,293 4,916 3,631
Extraordinary items, net
of taxes - - - -
Net income 1,989 1,293 4,916 3,631
Net income per share -
Basic $0.40 $0.27 $0.99 $0.76
Diluted $0.39 $0.26 $0.96 $0.73
Basic average common
shares
outstanding 4,956,930 4,816,875 4,947,717 4,773,836
Diluted average common
shares
outstanding 5,136,423 5,012,755 5,113,141 4,949,974
Charge offs 274 2 415 143
Recoveries 31 22 362 47
For the three For the nine
months ended months ended
30-Sep 30-Sep
------------- -------------
2005 2004 2005 2004
------ ------ ------ ------
Key Operating Ratios:
Return on average assets 1.71% 1.63% 1.55% 1.60%
Return on average equity 20.75% 14.99% 18.61% 14.52%
Yield on earning assets 7.33% 5.64% 6.87% 5.60%
Cost on interest bearing liabilities 3.12% 1.87% 2.72% 1.87%
Net interest margin 5.18% 4.46% 5.02% 4.47%
Cost of funds 2.28% 1.33% 1.97% 1.26%
Efficiency ratio 49.95% 60.82% 55.39% 59.79%
Average stockholders' equity to
average total assets 8.27% 10.88% 8.33% 10.99%
Contact:
Saehan Bancorp
Daniel Kim, 213-637-4802
or
Maier & Company, Inc.
Gary S. Maier, 310-442-9852
