SAEHAN BANCORP REPORTS THIRD QUARTER RESULTS

LOS ANGELES, CALIFORNIA -- November 12, 2009 -- Saehan Bancorp (OTCBB:SAEB) today announced financial results for its third quarter ended September 30, 2009, reflecting the continued impact of current economic conditions.

The company reported a net loss of $7.5 million, or $0.47 per share, for the third quarter of 2009 compared with net loss of $765,000, or $0.06 per diluted share, for the third quarter of 2008 – representing a significant improvement compared with the $22.3 million net loss, or $1.39 per share, reported in the preceding second quarter. The return on average equity for the third quarter of 2009 was -72.74 percent and the return on average assets was -3.26 percent compared with -4.95 percent and -0.36 percent, respectively, for the third quarter of 2008.

Additional highlights for the third quarter of 2009 include:

• Total assets at September 30, 2009 decreased 6.6 percent to $830.1 million from $888.3 million a year ago.
• Net loans decreased 23.6 percent to $566.9 million at September 30, 2009 from $741.8 million last year.
• Total deposits at September 30, 2009 increased 3.6 percent to $711.9 million from $687.3 million at September 30, 2008.
• Net interest margin for the third quarter of 2009 increased to 1.57 percent from the 1.40 percent reported in the second quarter of 2009.
• Efficiency for the third quarter of 2009 was 105.0 percent compared with 194.0 percent in the second quarter of 2009.
• Nonaccrual loans at September 30, 2009 decreased to $55.9 million from $58.4 million at June 30, 2009.
• Allowance for loan losses increased to 7.08 percent of total loans at September 30, 2009 compared to 6.43 percent at June 30, 2009.

“Financial results for the third quarter of 2009 are reflective of the challenging economic conditions facing the banking industry. We continue to remain focused on restoring the bank’s capital position to an acceptable level, building adequate reserves for loan losses, and maintaining ample liquidity,” said Chung Hoon Youk, president and chief executive officer of Saehan Bancorp.

Net interest income before provision for loan losses was $3.5 million in the third quarter of 2009 compared with $7.5 million in the third quarter of 2008, and $3.3 million in the second quarter of 2009. For the third quarter of 2009, net interest margin was 1.57 percent compared with 1.40 percent in the second quarter of 2009. The increase in the net interest margin from the previous quarter was primarily a result of a decrease in high-cost deposits, re-pricing of certificates of deposits, a decrease in brokered deposits and a decrease in non-accrual loans.

Noninterest income in the third quarter of 2009 totaled $2.3 million compared with $1.3 million in the third quarter of 2008 and $126,000 in the second quarter of 2009. The increase in noninterest income is primarily attributable to a $1.0 million gain from the sale of the bank owned property in the third quarter of 2009.

Noninterest expense for the third quarter of 2009 was $6.2 million, an increase of $472,000 from the third quarter of 2008 and a decrease of $398,000 from the second quarter of 2009. The slight decrease in noninterest expense for the third quarter of 2009 compared with that of the second quarter of 2009 is primarily attributable to lower employee salaries and benefits, partially offset by the increases in FDIC assessment and legal fees.

The efficiency ratio for the third quarter of 2009 was 106.0 percent compared with 194.0 percent in the second quarter of 2009.

Nonperforming assets were $68.2 million at September 30, 2009, compared with $66.9 million at June 30, 2009. Nonperforming assets represented 8.2 percent of total assets at September 30, 2009. The provision for loan losses was $12.4 million for the third quarter of 2009 compared with $34.9 million for the second quarter of 2009.

Shareholders’ equity totaled $33.4 million at September 30, 2009 -- a decrease of $7.3 million compared with $40.7 million at June 30, 2009. Shareholders’ equity primarily decreased as a result of the net loss. The Leverage Ratio was 2.6 percent, the Tier 1 Risk-based Capital Ratio was 3.5 percent and the Total Risk-based Capital Ratio was 4.8 percent at September 30, 2009.

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, and SBA Department of Saehan Bank focus on fulfilling these commitments to customers and shareholders.

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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