LOS
ANGELES--(BUSINESS
WIRE)--Jan.
30,
2006--Saehan
Bancorp (OTCBB:SAEB
-
News)
today
announced
record net
income for
its fourth
quarter and
year ended
December 31,
2005.
Net
income for
the fourth
quarter of
2005 climbed
93.1 percent
to $2.3
million, or
$0.22 per
diluted
share, from
$1.2
million, or
$0.12 per
diluted
share, a
year
earlier. The
return on
average
common
equity for
the same
period was
21.4 percent
and the
return on
average
assets was
1.85
percent,
compared
with 13.1
percent and
1.40
percent,
respectively,
for the
fourth
quarter of
2004.
For the
full year,
net income
increased
49.8 percent
to $7.2
million, or
$0.71 per
diluted
share, from
$4.8
million, or
$0.48 per
diluted
share a year
earlier. The
return on
average
common
equity for
2005 was
17.8 percent
and the
return on
average
assets was
1.63
percent,
compared
with 14.1
percent and
1.54
percent,
respectively,
for 2004.
Additional
highlights
at December
31, 2005 and
for the
fourth
quarter of
2005
include:
-
Total
assets
at
December
31, 2005
increased
39.2
percent
to
$513.1
million
from
$368.7
million
a year
ago
-
Net
loans
increased
47.1
percent
to
$421.2
million
at
December
31, 2005
from
$286.4
million
last
year.
-
Total
deposits
at
December
31, 2005
climbed
40.0
percent
to
$421.8
million
from
$301.7
million
at
December
31,
2004.
-
Noninterest
bearing
demand
deposits
at
December
31, 2005
increased
by $11.0
million,
or 11.3
percent,
from
$97.6
million
at
December
31,
2004.
-
Net
interest
margin
for the
fourth
quarter
of 2005
increased
to 5.09
percent
from the
4.71
percent
reported
in the
fourth
quarter
of 2004.
-
Efficiency
for the
fourth
quarter
of 2005
improved
to 54.4
percent
from
63.1
percent
in the
fourth
quarter
of 2004.
-
The
ratio of
nonperforming
loans to
total
assets
at
December
31, 2005
improved
to 0.12
percent
from
0.18
percent
at
December
31,
2004.
Net
interest
income
before
provision
for loan
losses was
$6.2 million
in the
fourth
quarter of
2005
compared
with $3.9
million in
the fourth
quarter of
2004. For
the fourth
quarter of
2005, net
interest
margin was
5.09 percent
compared
with 4.71
percent in
the fourth
quarter of
2004. For
the full
year, net
interest
income and
the net
interest
margin
before
provision
for loan
losses were
$21.4
million and
5.02
percent,
compared
with $13.6
million and
4.53
percent,
respectively,
for 2004. An
increase in
the bank's
loan
portfolio
and prime
rates have
primarily
resulted in
an operating
environment
with
increased
net interest
margins in
2005.
Noninterest
income in
the fourth
quarter of
2005 totaled
$1.6
million,
compared
with $1.6
million in
the fourth
quarter of
2004. For
the full
year,
noninterest
income was
$7.4
million, up
6.1 percent
from $7.0
million
reported in
2004. The
boast in
noninterest
income is
primarily
attributable
to an
increase in
service
charges on
deposit
accounts.
Noninterest
expense for
the fourth
quarter of
2005 was
$4.3
million, an
increase of
$812,000
from the
fourth
quarter of
2004. For
the full
year,
noninterest
expense was
$15.9
million,
compared
with $12.5
million in
2004. The
increase in
noninterest
expense for
the fourth
quarter and
the full
year of 2005
is primarily
attributable
to higher
employee
salaries and
benefits,
and higher
occupancy
and
equipment
expenses.
The
efficiency
ratio for
the fourth
quarter of
2005 was
54.4 percent
compared
with the
fourth
quarter of
2004 at 63.1
percent. For
the year
2005, the
efficiency
ratio was
55.1 percent
compared
with 60.7
percent for
2004.
Nonperforming
loans were
$623,000 at
December 31,
2005,
compared
with
$658,000 at
December 31,
2004.
Nonperforming
loans and
OREO
represented
0.12 percent
of total
assets at
December 31,
2005. The
provision
for loan
losses was
$191,000 for
the fourth
quarter of
2005
compared
with
$300,000 for
the year ago
quarter. For
the year
2005, the
provision
for loan
losses was
$1.5
million,
compared
with the
provision
for loan
losses of
$437,000 for
2004.
Shareholders'
equity
totaled
$44.6
million at
December 31,
2005, an
increase of
$7.1 million
compared
with $37.5
million at
December 31,
2004.
Shareholders'
equity
primarily
increased as
a result of
the
company's
earnings and
the exercise
of stock
options.
Capital
ratios
continue to
be above the
"Well-Capitalized"
guidelines
established
by the
regulatory
agencies.
The Leverage
Ratio was
8.97
percent, the
Tier 1
Risk-based
Capital
Ratio was
10.30
percent and
the Total
Risk-based
Capital
Ratio was
11.40
percent at
December 31,
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)
31-Dec
2005 2004
Assets:
Cash & due from banks - demand 10,825 7,966
Due from banks-interest bearing 5,069 2,027
Federal fund sold 7,045 13,325
Securities available-for-sale 55,473 39,740
Loans 425,867 299,602
Less: Allowance for loan losses 4,687 3,440
Net loans 421,180 286,382
Loans held for sale - 9,780
Bank premises and equipment, net 3,313 2,455
Other assets 10,237 7,064
Total assets 513,140 368,739
Liabilities and stockholders' equity:
Deposits:
Noninterest bearing demand 108,601 97,610
Interest bearing demand and savings 106,664 113,281
Time deposits 206,535 90,761
Total deposits 421,800 301,652
Other borrowed money 42,000 27,000
Other liabilities 4,753 2,582
Total liabilities 468,553 331,234
Total stockholders' equity 44,587 37,505
Total liabilities and
stockholders' equity 513,140 368,739
Book value per share 4.46 3.81
Period end shares outstanding 10,000,662 9,838,498
Nonperforming loans 623 658
Tier I leverage ratio 8.97% 10.89%
Tier 1 risk-based capital ratio 10.30% 12.06%
Total risk-based capital ratio 11.40% 13.20%
Saehan Bancorp
Condensed Income Statement and Comprehensive Income
(Dollars in thousands except per share data)
For the three For the twelve
months ended months ended
31-Dec 31-Dec
---------------------- ---------------------
2005 2004 2005 2004
---------------------- ---------------------
Interest income:
Interest and fees on
loans 8,735 4,484 28,029 15,513
Interest on securities 553 479 1,908 1,512
Interest on federal
funds sold 30 25 148 71
Other interest income 39 17 125 64
Total interest income 9,357 5,005 30,210 17,160
Interest expense:
Deposit 2,685 1,058 7,432 3,415
Other 460 60 1,337 142
Total interest expenses 3,145 1,118 8,769 3,557
Net interest income
before provision
for loan losses 6,212 3,887 21,441 13,603
Provision for loan
losses 191 300 1,451 437
Non-interest income:
Service charges on
deposit accounts 693 683 3,067 2,541
Gain on sale of loans 287 335 2,021 2,765
Gain on sale of
investment securities - - - -
Other operating income 626 552 2,349 1,702
Total non-interest
income 1,606 1,570 7,437 7,008
Non-interest expense:
Salaries and employee
benefits 2,454 1,524 8,991 6,652
Net occupancy and
equipment expense 614 456 2,309 1,660
Other operating expense 1,188 1,464 4,622 4,193
Total non-interest
expenses 4,256 3,444 15,922 12,505
Income before income
taxes 3,371 1,713 11,505 7,669
Income taxes 1,048 510 4,266 2,835
Minority interest - -
Income before
extraordinarily items 2,323 1,203 7,239 4,834
Extraordinary items, net
of taxes - - - -
Net income 2,323 1,203 7,239 4,834
Net income per share -
Basic $0.23 $0.12 $0.73 $0.50
Diluted $0.22 $0.12 $0.71 $0.48
Basic average common
shares
outstanding 9,927,216 9,767,512 9,899,350 9,602,981
Diluted average common
shares
outstanding 10,389,175 10,194,996 10,265,952 9,982,836
Charge offs 217 469 632 612
Recoveries 66 136 428 183
For the three For the twelve
months ended months ended
31-Dec 31-Dec
---------------------- ---------------------
2005 2004 2005 2004
---------------------- ---------------------
Key Operating Ratios:
Return on average
assets 1.85% 1.40% 1.63% 1.54%
Return on average
equity 21.35% 13.10% 17.77% 14.12%
Earning assets yield 7.67% 6.06% 7.07% 5.72%
Interest rate on
interest bearing
liabilities 3.11% 2.00% 2.54% 1.89%
Net interest margin 5.09% 4.71% 5.02% 4.53%
Cost of funds 2.76% 1.47% 2.19% 1.29%
Efficiency ratio 54.44% 63.11% 55.14% 60.67%
Average stockholders'
equity to
average total assets 8.65% 10.68% 9.20% 10.91%
