| COMPANY NEWS |
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Saehan Bancorp Reports Second Quarter Results
Thursday Febrary 3, 11:00 am ET
LOS ANGELES--(BUSINESS WIRE)--Saehan Bancorp (OTCBB: SAEB - News) today announced results for its fourth
quarter and year ended December 31, 2007, reflecting strong continued
asset growth in a challenging economic environment.
Net income for the fourth quarter of 2007 was $1.4 million, or $0.12 per
diluted share, compared with $1.4 million, or $0.12 per diluted share, a
year earlier. The return on average common equity for the same period
was 9.0 percent and the return on average assets was 0.69 percent,
compared with 10.5 percent and 0.91 percent, respectively, for the
fourth quarter of 2006.
For the full year, Saehan reported net income of $6.6 million, or $0.59
per diluted share, compared with $6.2 million, or $0.54 per diluted
share a year earlier. The return on average common equity for 2007 was
11.7 percent and the return on average assets was 0.92 percent, compared
with 12.0 percent and 1.03 percent, respectively, for 2006.
Additional highlights at December 31, 2007 and for the fourth quarter of
2007 include:
- Total assets at December 31, 2007 increased 31.2 percent to $823.6
million from $628.0 million a year ago.
- Net loans increased 31.8 percent to $687.6 million at December 31,
2007 from $521.7 million last year.
- Total deposits at December 31, 2007 increased 22.4 percent to $639.7
million from $522.5 million at December 31, 2006.
- Net interest margin for the fourth quarter of 2007 decreased to 4.05
percent from the 4.68 percent reported in the fourth quarter of 2006.
- Efficiency for the fourth quarter of 2007 improved to 54.2 percent
from 64.9 percent in the fourth quarter of 2006.
- The ratio of nonperforming loans to total assets at December 31, 2007
increased to 1.17 percent from 0.24 percent at December 31, 2006.
“Saehan achieved steady growth in the fourth
quarter of 2007 derived from its core banking relationships and focus on
risk management. Despite a challenging economic environment impacted by
a housing slow down, rising energy costs and declining interest rates,
Saehan is well positioned and committed to making quality loans and
providing innovative products and services to our customers in 2008,” said Benjamin Hong, president and chief executive officer.
Net interest income before provision for loan losses was $7.8 million in
the fourth quarter of 2007 compared with $6.8 million in the fourth
quarter of 2006. For the fourth quarter of 2007, net interest margin was
4.05 percent compared with 4.68 percent in the fourth quarter of 2006.
For the full year, net interest income and the net interest margin
before provision for loan losses were $30.5 million and 4.39 percent,
respectively, compared with $25.5 million and 4.78 percent,
respectively, for 2006. The decrease in the net interest margin from the
same quarter a year ago was primarily a result of a lag in the repricing
of certain deposit products, such as certificates of deposits and money
market accounts.
Noninterest income in the fourth quarter of 2007 totaled $1.8 million
compared with $1.9 million in the fourth quarter of 2006. For the full
year, noninterest income was $9.0 million, up 30.8 percent from $6.9
million reported in 2006. The increase in noninterest income is
primarily attributable to the $1.7 million increase in gain on sale of
loans.
Noninterest expense for the fourth quarter of 2007 was $5.1 million, a
decrease of $454,000 from the fourth quarter of 2006. For the full year,
noninterest expense was $25.2 million compared with $20.8 million in
2006. The increase in noninterest expense for the full year of 2007 is
primarily attributable to higher employee salaries and benefits, and
higher occupancy and equipment expenses related to the bank’s
expansion initiatives.
The efficiency ratio for the fourth quarter of 2007 was 54.2 percent
compared with the fourth quarter of 2006 at 64.9 percent. For the year
2007, the efficiency ratio was 63.6 percent compared with 64.2 percent
for 2006.
Nonperforming loans and OREO were $9.7 million at December 31, 2007,
compared with $1.5 million at December 31, 2006. Nonperforming assets
represented 1.17 percent of total assets at December 31, 2007. The
provision for loan losses was $2.2 million for the fourth quarter of
2007 compared with $570,000 for the year ago quarter. For the year 2007,
the provision for loan losses was $3.4 million, compared with the
provision for loan losses of $1.4 million for 2006.
Shareholders’ equity totaled $61.4 million at
December 31, 2007 -- an increase of $8.5 million compared with $52.9
million at December 31, 2006. 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 10.2 percent, the Tier 1 Risk-based Capital Ratio was 11.0 percent
and the Total Risk-based Capital Ratio was 12.1 percent at December 31,
2007.
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 ten retail
branch offices, International Department, SBA Department, and Financial
Services 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) |
| |
|
|
|
|
|
|
|
|
31-Dec |
|
|
|
2007 |
|
|
2006 |
|
| Assets: |
|
|
|
|
|
Cash & due from banks - demand |
|
14,427 |
|
|
13,537 |
|
|
Due from banks-interest bearing |
|
4,899 |
|
|
5,168 |
|
|
Federal fund sold |
|
37,430 |
|
|
11,785 |
|
|
Securities available-for-sale |
|
52,681 |
|
|
56,065 |
|
|
Loans |
|
695,263 |
|
|
526,948 |
|
|
Less: Allowance for loan losses |
|
7,704 |
|
|
5,223 |
|
|
Net loans |
|
687,559 |
|
|
521,725 |
|
|
Loans held for sale |
|
761 |
|
|
2,942 |
|
|
Bank premises and equipment, net |
|
6,800 |
|
|
5,954 |
|
|
Other assets |
|
19,081 |
|
|
10,859 |
|
|
Total assets |
|
823,638 |
|
|
628,035 |
|
|
|
|
|
|
|
| Liabilities and stockholders' equity: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest bearing demand |
|
119,815 |
|
|
122,873 |
|
|
Interest bearing demand and savings |
|
156,669 |
|
|
126,994 |
|
|
Time deposits |
|
363,174 |
|
|
272,593 |
|
|
Total deposits |
|
639,658 |
|
|
522,460 |
|
|
Other borrowed money |
|
96,500 |
|
|
47,000 |
|
|
Junior subordinated debenture |
|
20,619 |
|
|
- |
|
|
Other liabilities |
|
5,453 |
|
|
5,673 |
|
|
Total liabilities |
|
762,230 |
|
|
555,133 |
|
|
Total stockholders' equity |
|
61,408 |
|
|
52,902 |
|
|
Total liabilities and stockholders' equity |
|
823,638 |
|
|
628,035 |
|
|
Book value per share |
|
5.50 |
|
|
4.77 |
|
|
Period end shares outstanding |
|
11,160,737 |
|
11,089,574 |
|
Nonperforming loans |
|
9,652 |
|
|
1,502 |
|
|
|
|
|
|
|
|
Tier I leverage ratio |
|
10.21 |
% |
|
8.83 |
% |
|
Tier 1 risk-based capital ratio |
|
11.00 |
% |
|
9.67 |
% |
|
Total risk-based capital ratio |
|
12.08 |
% |
|
10.64 |
% |
| 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 |
|
|
|
2007 |
|
|
|
2006 |
|
|
|
2007 |
|
|
|
2006 |
|
| Interest income: |
|
|
|
|
|
|
|
|
Interest and fees on loans |
14,549 |
|
11,369 |
|
54,428 |
|
39,838 |
|
Interest on securities |
|
540 |
|
|
|
570 |
|
|
|
2,224 |
|
|
|
2,247 |
|
|
Interest on federal funds sold |
|
39 |
|
|
|
149 |
|
|
|
212 |
|
|
|
878 |
|
|
Other interest income |
|
28 |
|
|
|
66 |
|
|
|
66 |
|
|
|
232 |
|
|
Total interest income |
15,156 |
|
12,154 |
|
56,930 |
|
43,195 |
|
Interest expense: |
|
|
|
|
|
|
|
|
Deposit |
5,605 |
|
5,074 |
|
21,068 |
|
16,316 |
|
Other |
1,789 |
|
314 |
|
5,320 |
|
1,414 |
|
Total interest expenses |
7,394 |
|
5,388 |
|
26,388 |
|
17,730 |
|
Net interest income before provision for loan losses |
7,762 |
|
6,766 |
|
30,542 |
|
25,465 |
|
Provision for loan losses |
2,206 |
|
570 |
|
3,438 |
|
1,366 |
|
Non-interest income: |
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
623 |
|
|
|
465 |
|
|
|
2,279 |
|
|
|
2,166 |
|
Gain on sale of loans |
|
439 |
|
|
|
849 |
|
|
|
4,140 |
|
|
|
2,456 |
|
Gain on sale of investment securities |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Other operating income |
|
689 |
|
|
|
563 |
|
|
|
2,603 |
|
|
|
2,278 |
|
Total non-interest income |
1,751 |
|
|
|
1,877 |
|
|
|
9,022 |
|
|
|
6,900 |
|
Non-interest expense: |
|
|
|
|
|
|
|
|
Salaries and employee benefits |
2,697 |
|
|
|
3,596 |
|
|
|
14,473 |
|
|
12,610 |
|
Net occupancy and equipment expense |
1,185 |
|
|
|
772 |
|
|
|
4,223 |
|
|
2,892 |
|
Other operating expense |
1,272 |
|
|
|
1,240 |
|
|
|
6,467 |
|
|
5,262 |
|
Total non-interest expenses |
5,154 |
|
|
|
5,608 |
|
|
|
25,163 |
|
|
20,764 |
|
Income before income taxes |
|
2,153 |
|
|
2,465 |
|
|
10,963 |
|
|
10,235 |
|
Income taxes |
|
784 |
|
|
|
1,096 |
|
|
|
4,327 |
|
|
|
4,079 |
|
Income before extraordinary items |
|
1,369 |
|
|
1,369 |
|
|
6,636 |
|
|
6,156 |
|
Extraordinary items, net of taxes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Net income |
1,369 |
|
|
|
1,369 |
|
|
6,636 |
|
|
|
6,156 |
|
Net income per share - |
|
|
|
|
|
|
|
|
Basic |
$ 0.12 |
|
|
$ |
0.12 |
|
|
$ 0.60 |
|
|
$ 0.56 |
|
|
Diluted |
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ 0.59 |
|
|
$ 0.54 |
|
|
|
|
|
|
|
|
|
|
|
Basic average common shares outstanding |
11,160,575 |
11,089,574 |
11,131,460 |
11,057,446 |
|
Diluted average common shares outstanding |
11,176,809 |
11,858,009 |
11,226,956 |
11,411,365 |
|
|
|
|
|
|
|
|
|
|
Charge offs |
|
997 |
|
|
|
323 |
|
|
|
1,228 |
|
|
|
766 |
|
|
Recoveries |
|
(3 |
) |
|
|
85 |
|
|
|
16 |
|
|
|
191 |
|
|
|
|
|
|
|
|
|
|
|
|
For the three |
|
For the tweleve |
|
|
months ended |
|
months ended |
|
|
31-Dec |
|
31-Dec |
|
|
|
2007 |
|
|
|
2006 |
|
|
|
2007 |
|
|
|
2006 |
|
|
Key Operating Ratios: |
|
|
|
|
|
|
|
|
Return on average assets |
0.69 % |
|
|
0.91 |
% |
|
|
0.92 |
% |
|
1.03 |
% |
|
Return on average equity |
8.96 % |
|
|
10.50 |
% |
|
|
11.67 |
% |
|
11.98 |
% |
|
Earning assets yield |
7.90 % |
|
|
8.41 |
% |
|
|
8.18 |
% |
|
8.10 |
% |
|
Interest rate on interest bearing liabilities |
4.87 % |
|
|
4.69 |
% |
|
|
4.91 |
% |
|
4.19 |
% |
|
Net interest margin |
4.05 % |
|
|
4.68 |
% |
|
|
4.39 |
% |
|
4.78 |
% |
|
Cost of funds |
4.06 % |
|
|
3.95 |
% |
|
|
4.01 |
% |
|
3.57 |
% |
|
Efficiency ratio |
54.18 % |
|
|
64.88 |
% |
|
|
63.60 |
% |
|
64.16 |
% |
|
Average stockholders' equity to average total assets |
7.66 % |
|
|
8.63 |
% |
|
|
7.86 |
% |
|
8.85 |
% |
Contact:
Saehan Bancorp
Daniel Kim, 213-637-4802
or
Maier & Company, Inc.
Gary S. Maier, 310-442-9852
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