SAEHAN BANCORP REPORTS FIRST QUARTER RESULTS

LOS ANGELES, CALIFORNIA -- May 13, 2009 -- Saehan Bancorp (OTCBB:SAEB) today reported results for its first quarter ended March 31, 2009, reflecting the continued impact of current economic conditions and a reduced net loss on a sequential quarterly basis. 
The company reported a net loss of $73,000, or $0.01 per diluted share for the first quarter of 2009 compared with net income of $1.0 million, or $0.05 per diluted share a year ago and net loss of $11.4 million, or $0.85 per diluted share for the fourth quarter of 2008.  The return on average equity for the first quarter of 2009 was -0.44 percent and the return on average assets was -0.04 percent compared with 5.93 percent and 0.46 percent, respectively, for the first quarter of 2008. 

Other highlights for the first quarter of 2009 included:

• Total assets increased $52.0 million, or 6.0 percent from the same period a year ago.
• Net loans decreased $11.1 million from the same period a year ago.
• Total deposits increased $87.0 million, or 13.1 percent, from a year earlier.
• Net interest margin was 2.52 percent, compared with 3.64 percent for the first quarter of 2008.
• Efficiency ratio was 98.2 percent, compared 69.75 percent for the first quarter of 2008.
• The ratio of nonperforming loans to net loans was 7.92 percent compared with 2.17 percent at March 31, 2008.
• Noninterest income was $424,000, compared with $1.4 million for the first quarter of 2008.
• Noninterest expense was $5.2 million, compared with $6.0 million for the first quarter of 2008.

 “While capital ratios remain well above the guidelines established by regulatory agencies, management continues to focus attention on opportunities to further strengthen the bank’s capital position and to meet or exceed liquidity requirements in this challenging economic environment.” said Chung H. Youk, president and chief executive officer. 

Net interest income before provision for loan losses was $4.9 million in the first quarter of 2009 compared with $7.1 million in the same period a year ago.  Net interest margin for the first quarter of 2009 was 2.52 percent compared with 3.64 percent in the first quarter a year earlier.  Net interest margin was adversely affected by the Federal Reserve’s decision to aggressively lower the Federal Funds Rate during 2008 and the increase in non-accrual loans in the first quarter of 2009.
Noninterest income in the first quarter of 2009 totaled $424,000, compared with $1.4 million a year ago.  The reduction was primarily attributable to the loss on the sale/write-down of OREO of $790,000 and a $198,000 reduction in gain on sale of SBA loans, partially offset by a $56,000 increase in service charges on deposit accounts. Gain on sale of loans declined substantially as a result of significantly lower SBA market activity and reduced sales premiums paid on SBA loans sold to the secondary market.
Noninterest expense for the first quarter of 2009 was $5.2 million, a decrease of $726,000 from the first quarter last year.  The decrease in noninterest expense for the first quarter of 2009 was primarily attributable to lower employee compensation expense, partially offset by higher occupancy and equipment expenses.  The efficiency ratio for the first quarter of 2009 was 98.2 percent compared with 69.8 percent in the first quarter of 2008. 
Nonperforming loans were $55.1 million at March 31, 2009 -- up $39.5 million from $15.6 million at March 31, 2008.  Nonperforming loans and OREO represented 6.53 percent of total assets at March 31, 2009.  The provision for loan losses was $230,000 for the first quarter of 2009 compared with $1.1 million a year ago. 
Total assets were $913.3 million as of March 31, 2009 -- representing an increase of $52.0 million, or 6.03 percent, over the $861.3 million in total assets reported on March 31, 2008.  Total deposits as of March 31, 2009 increased $87.0 million, or 13.1 percent, to $749.4 million from $662.4 million as of March 31, 2008.
Shareholders’ equity increased to $63.0 million at March 31, 2009 from $62.6 million at March 31, 2008.  Shareholders’ equity primarily increased as a result of a private placement in November 2008, partially offset by net losses in recent quarters.  Capital ratios continue to be well above the “Well-Capitalized” guidelines established by the regulatory agencies.  The Leverage Ratio was 10.22 percent, the Tier 1 Risk-based Capital Ratio was 10.86 percent and the Total Risk-based Capital Ratio was 12.13 percent.

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 multi-ethnic communities in the U.S.  Saehan Bancorp is committed to satisfying customers and creating shareholder value.  Its ten 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.”

Contact:           Daniel Kim
Senior Vice President & Chief Financial Officer
Saehan Bancorp
(213) 637-4802
-or-
Gary S. Maier
Maier & Company, Inc.
310-442-9852