LOS
ANGELES--(BUSINESS
WIRE)--Aug.
3,
2006--Saehan
Bancorp
(OTCBB:
SAEB
-
News)
today
reported
results
for
its
second
quarter
ended
June
30,
2006,
reflecting
increased
deposits
and
net
loans.
Net
income
for
the
quarter
was
$1.7
million,
or
$0.16
per
diluted
share,
compared
with
$1.7
million,
or
$0.17
per
diluted
share
a
year
ago.
Per
share
results
for
the
second
quarter
of
2006
included
$0.01
per
diluted
share
on
an
after-tax
basis
related
to
the
impact
of
stock-based
compensation
expense
pursuant
to
the
adoption
of
SFAS
123R,
"Share-Based
Payment."
The
return
on
average
equity
for
the
second
quarter
of
2006
was
14.23
percent
and
the
return
on
average
assets
was
1.30
percent,
compared
with
17.24
percent
and
1.60
percent,
respectively,
for
the
second
quarter
of
2005.
Other
highlights
for
the
second
quarter
of
2006
included:
- Total deposits increased $96.6 million, or 26.5 percent, over a year ago.
- Net loans increased $62.6 million, or 17.0 percent, over the same period a year ago.
- Net interest margin slightly decreased to 4.91 percent from the 5.03 percent reported in the second quarter of 2005.
- Efficiency increased to 64.49 percent from 56.11 percent in the second quarter of 2005.
- The ratio of nonperforming loans to net loans was 0.24 percent compared with 0.10 percent at June 30, 2005.
"During
the
second
quarter
of
2006,
Saehan
succeeded
in
recruiting
highly
talented
professionals,
building
a
competitive
infrastructure,
and
establishing
strategies
to
excel
in
the
banking
market.
Our
bank
is
now
well
positioned
to
capitalize
on
market
opportunities.
We
expect
that
our
performance
in
the
second
half
of
2006
will
greatly
benefit
from
these
initiatives,"
said
Benjamin
Hong,
president
and
chief
executive
officer.
Net
interest
income
before
provision
for
loan
losses
was
$6.2
million
in
the
second
quarter
of
2006
compared
with
$5.1
million
in
the
second
quarter
of
2005.
Net
interest
margin
for
the
second
quarter
of
2006
was
4.91
percent,
down
from
5.03
percent
in
the
second
quarter
of
2005.
Net
interest
margin
decreased
0.12
percent,
as
cost
of
funds
increased
142
basis
points,
while
yield
on
earning
assets
increased
only
119
basis
points.
Cost
of
funds
in
the
second
quarter
of
2006
was
3.37
percent,
compared
with
1.94
percent
in
the
second
quarter
of
2005.
Non-interest
income
in
the
second
quarter
of
2006
was
$1.4
million,
compared
with
$2.4
million
for
the
second
quarter
of
2005.
Non-interest
income
decreased
$980,000,
or
40.7
percent,
primarily
due
to a
$608,000
decrease
in
gain
on
sale
of
SBA
loans
and
a
$304,000
decrease
in
service
charges
on
deposit
accounts.
Non-interest
expense
for
the
second
quarter
of
2006
was
$4.9
million,
an
increase
of
$678,000
from
the
second
quarter
of
2005.
The
increase
in
non-interest
expense
for
the
second
quarter
of
2005
compared
with
the
same
period
a
year
ago
is
attributable
to
higher
employee
salaries
and
benefits,
and
higher
occupancy
and
equipment
expenses.
Included
in
employee
compensation
expense
for
the
second
quarter
of
2006
was
$199,000
of
stock-based
compensation
expense
pursuant
to
the
adoption
of
SFAS
123R,
"Share-Based
Payment."
The
efficiency
ratio
for
the
second
quarter
of
2006
was
64.5
percent
compared
with
56.1
percent
in
the
second
quarter
of
2005.
Nonperforming
loans
were
$1.1
million
at
June
30,
2006
--
up
$708,000
from
$365,000
at
June
30,
2005.
Nonperforming
loans
and
OREO
represented
0.20
percent
of
total
assets
at
June
30,
2006.
Total
assets
were
$535.6
million
as
of
June
30,
2006,
representing
an
increase
of
$79.0
million,
or
17.3
percent,
compared
with
the
$456.6
million
in
total
assets
reported
on
June
30,
2005.
Total
deposits
as
of
June
30,
2006
increased
$96.6
million,
or
26.5
percent,
to
$460.7
million
from
$364.1
million
as
of
June
30,
2005.
Shareholders'
equity
totaled
$48.1
million
at
June
30,
2006,
an
increase
of
$7.6
million
compared
with
$40.6
million
at
June
30,
2005.
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
9.48
percent,
the
Tier
1
Risk-based
Capital
Ratio
was
10.92
percent
and
the
Total
Risk-based
Capital
Ratio
was
12.14
percent
as
of
June
30,
2006.
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
eight
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
2006 2005
Assets:
Cash & due from banks - demand 11,983 11,517
Due from banks-interest bearing 4,424 6,018
Federal fund sold 20,440 3,085
Securities available-for-sale 53,638 46,440
Loans 435,308 371,723
Less: Allowance for loan losses 5,371 4,350
Net loans 429,937 367,373
Loans held for sale 462 9,269
Bank premises and equipment, net 3,798 2,718
Other assets 10,883 10,179
Total assets 535,565 456,599
Liabilities and stockholders' equity:
Deposits:
Noninterest bearing demand 112,500 109,556
Interest bearing demand and savings 95,365 111,513
Time deposits 252,836 143,008
Total deposits 460,701 364,077
Other liabilities 26,739 48,809
Total liabilities 487,440 416,031
Total stockholders' equity 48,125 40,568
Total liabilities and
stockholders' equity 535,565 456,599
Book value per share 4.70 4.09
Period end shares outstanding 10,237,396 9,913,386
Nonperforming loans 1,073 365
Tier I leverage ratio 9.48% 9.54%
Tier 1 risk-based capital ratio 10.92% 10.23%
Total risk-based capital ratio 12.14% 11.35%
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
----------------------- -----------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
Interest income:
Interest and fees
on loans 9,329 6,442 18,381 11,677
Interest on
securities 550 476 1,100 913
Interest on federal
funds sold 165 17 261 54
Other interest
income 58 27 102 49
Total interest
income 10,102 6,962 19,844 12,693
Interest expense:
Deposit 3,535 1,559 6,656 2,774
Other 398 287 817 460
Total interest
expenses 3,933 1,846 7,473 3,234
Net interest income
before provision
for loan losses 6,169 5,116 12,371 9,459
Provision for loan
losses - 350 796 720
Non-interest
income:
Service charges on
deposit accounts 558 862 1,238 1,554
Gain on sale of
loans 352 960 1,221 1,490
Gain on sale of
investment
securities - - - -
Other operating
income 520 588 1,075 1,114
Total non-interest
income 1,430 2,410 3,534 4,158
Non-interest
expense:
Salaries and
employee benefits 2,766 2,324 5,900 4,377
Net occupancy and
equipment expense 656 590 1,303 1,095
Other operating
expense 1,479 1,309 2,750 2,476
Total non-interest
expenses 4,901 4,223 9,953 7,948
Income before
income taxes 2,698 2,953 5,156 4,949
Income taxes 1,005 1,251 2,046 2,022
Income before
extraordinary
items 1,693 1,702 3,110 2,927
Extraordinary
items, net of
taxes - - - -
Net income 1,693 1,702 3,110 2,927
Net income per
share -
Basic $0.17 $0.17 $0.30 $0.30
Diluted $0.16 $0.17 $0.29 $0.29
Basic average
common shares
outstanding 10,237,396 9,913,308 10,198,007 9,889,961
Diluted average
common shares
outstanding 10,560,662 10,220,257 10,586,965 10,212,924
Charge offs 109 65 136 141
Recoveries 4 167 24 331
For the three For the six
months ended months ended
30-Jun 30-Jun
----------------------- -----------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
Key Operating
Ratios:
Return on average
assets 1.30% 1.60% 1.20% 1.46%
Return on average
equity 14.23% 17.24% 13.26% 15.06%
Yield on earning
assets 8.04% 6.85% 7.93% 6.69%
Cost on interest
bearing
liabilities 4.36% 2.66% 4.16% 2.86%
Net interest
margin 4.91% 5.03% 4.94% 4.98%
Cost of funds 3.37% 1.94% 3.21% 1.79%
Efficiency ratio 64.49% 56.11% 62.58% 58.37%
