SAEHAN BANCORP REPORTS FOURTH QUARTER AND YEAR-END RESULTS
LOS ANGELES--(BUSINESS WIRE)--Saehan Bancorp (OTCBB:SAEB - News) today announced financial results for its fourth quarter and year ended December 31, 2009, reflecting the impact of current economic conditions.
The company reported a net loss of $23.9 million, or $1.49 per share for the fourth quarter of 2009 compared with net loss of $11.4 million, or $0.85 per share, in the same period a year ago. Results for the fourth quarter were impacted by a $19.7 million, or $0.58 per share, non-cash deferred tax asset valuation allowance.
For the twelve-month period Saehan Bancorp reported a net loss of $56.4 million, or $3.52 per share, compared with net loss of $12.9 million, or $1.04 per diluted share, for 2008.
Additional highlights at December 31, 2009 and for the fourth quarter of 2009 include:
- Total assets at December 31, 2009 were $668.1 million compared with $842.7 million a year ago.
- Net loans were $533.3 million at December 31, 2009 compared with $709.6 million last year.
- Total deposits at December 31, 2009 were $576.3 million compared with $633.5 million at December 31, 2008.
- Net interest margin for the fourth quarter of 2009 was 2.44 percent compared with 2.76 percent reported in the fourth quarter of 2008.
- Efficiency for the fourth quarter of 2009 was 106.8 percent compared with 93.5 percent in the fourth quarter of 2008.
- Nonperforming loans at December 31, 2009 were $50.6 million compared with $42.0 million at December 31, 2008.
- Allowance for loan losses was 6.81 percent of total loans at December 31, 2009 compared to 3.03 percent at December 31, 2008.
“During the fourth quarter, the company continued to focus on restoring the bank’s capital position to an acceptable level. This is clearly a challenging period and we are working due diligently to raise additional capital to strengthen the bank’s financial structure,” said Chung Hoon Youk, president and chief executive officer of Saehan Bancorp.
Net interest income before provision for loan losses was $4.5 million in the fourth quarter of 2009 compared with $5.5 million in the fourth quarter of 2008. For the fourth quarter of 2009, net interest margin was 2.44 percent compared with 2.76 percent in the fourth quarter of 2008. For the full year, net interest income and the net interest margin before provision for loan losses were $16.2 million and 1.94 percent, respectively, compared with $27.1 million and 3.38 percent, respectively, for 2008. The decrease in the net interest margin from the same quarter a year ago was primarily a result of increases in non-accrual loans and long-term brokered deposits.
Noninterest income in the fourth quarter of 2009 totaled $1.5 million compared with $865,000 in the fourth quarter of 2008. For the full year, noninterest income was $1.7 million, down 67.1 percent from $5.3 million reported in 2008. The decrease in noninterest income is primarily attributable to the $4.6 million of loss on sale of other real estate owned in 2009.
Noninterest expense for the fourth quarter of 2009 was $6.4 million, an increase of $451,000 from the fourth quarter of 2008. For the full year, noninterest expense was $24.4 million compared with $24.0 million in 2008. The increase in noninterest expense for the fourth quarter and full year of 2009 is primarily attributable to increases in legal expenses and FDIC deposit insurance assessment partially offset by lower employee salaries.
The efficiency ratio for the fourth quarter of 2009 was 106.8 percent compared with 93.5 percent in the fourth quarter of 2008. The efficiency ratio for the full year was 136.3 percent compared with 74.3 percent for 2008.
Nonperforming loans and OREO were $67.6 million at December 31, 2009, compared with $46.4 million at December 31, 2008. Nonperforming assets represented 10.1 percent of total assets at December 31, 2009. The provision for loan losses was $3.3 million for the fourth quarter of 2009 compared with $19.4 million for the year ago quarter. The provision for loan losses for 2009 was $50.8 million, compared with the provision for loan losses of $29.8 million for 2008.
Shareholders’ equity totaled $6.5 million at December 31, 2009, compared with $62.8 million at December 31, 2008. Shareholders’ equity primarily decreased as a result of net losses. Saehan Bank, the company’s subsidiary, remained “Significantly Undercapitalized” under the regulatory capital adequacy guidelines. The bank’s leverage Ratio was 3.5 percent, the Tier 1 Risk-based Capital Ratio was 4.3 percent and the Total Risk-based Capital Ratio was 5.7 percent at December 31, 2009.
Due to continuing operating losses during 2009, management reassessed the potential realization of the deferred tax asset as of December 31, 2009 and established a valuation allowance of $19.7 million, to reduce the deferred tax asset to approximately $9.3 million, which represents the amount of the asset estimated to be currently recoverable via carryback of current net operating losses under the new tax legislation signed on November 6, 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.
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 |
|
|
|
2009 |
|
|
|
|
2008 |
|
| Assets: |
|
|
|
|
|
|
|
Cash & due from banks - demand |
|
11,697 |
|
|
|
|
15,218 |
|
|
Due from banks-interest bearing |
|
23,437 |
|
|
|
|
1,022 |
|
|
Federal fund sold |
|
4,392 |
|
|
|
|
32,792 |
|
|
Securities available-for-sale |
|
43,863 |
|
|
|
|
44,399 |
|
|
Loans |
|
575,308 |
|
|
|
|
731,709 |
|
|
Less: Allowance for loan losses |
|
42,037 |
|
|
|
|
22,157 |
|
|
Net loans |
|
533,271 |
|
|
|
|
709,552 |
|
|
Loans held for sale |
|
- |
|
|
|
|
729 |
|
|
Bank premises and equipment, net |
|
4,251 |
|
|
|
|
6,044 |
|
|
Other real estate owned |
|
17,046 |
|
|
|
|
4,415 |
|
|
Direct & indirect investments in real estate |
|
7,884 |
|
|
|
|
- |
|
|
Other assets |
|
22,244 |
|
|
|
|
28,480 |
|
|
Total assets |
|
668,085 |
|
|
|
|
842,651 |
|
|
|
|
|
|
|
|
|
| Liabilities and stockholders' equity: |
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
Noninterest bearing demand |
|
126,594 |
|
|
|
|
113,212 |
|
|
Interest bearing demand and savings |
|
89,301 |
|
|
|
|
135,718 |
|
|
Time deposits |
|
360,394 |
|
|
|
|
384,521 |
|
|
Total deposits |
|
576,289 |
|
|
|
|
633,451 |
|
|
Other borrowed money |
|
60,000 |
|
|
|
|
121,000 |
|
|
Junior subordinated debenture |
|
20,619 |
|
|
|
|
20,619 |
|
|
Other liabilities |
|
4,655 |
|
|
|
|
4,735 |
|
|
Total liabilities |
|
661,563 |
|
|
|
|
779,805 |
|
|
Total stockholders' equity |
|
6,522 |
|
|
|
|
62,846 |
|
|
Total liabilities and |
|
|
|
|
|
|
|
stockholders' equity |
|
668,085 |
|
|
|
|
842,651 |
|
|
Book value per share |
|
0.39 |
|
|
|
|
3.92 |
|
|
Period end shares outstanding |
|
16,032,429 |
|
|
|
|
16,032,429 |
|
|
Nonperforming loans |
|
50,563 |
|
|
|
|
42,012 |
|
|
|
|
|
|
|
|
|
|
Tier I leverage ratio |
|
1.10 |
% |
|
|
|
9.87 |
% |
|
Tier 1 risk-based capital ratio |
|
1.38 |
% |
|
|
|
10.51 |
% |
|
Total risk-based capital ratio |
|
2.76 |
% |
|
|
|
11.78 |
% |
| 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 |
|
|
|
|
2009 |
|
|
|
2008 |
|
|
|
|
2009 |
|
|
|
2008 |
|
| Interest income: |
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
|
8,090 |
|
|
|
10,728 |
|
|
|
|
35,330 |
|
|
|
49,824 |
|
|
Interest on securities |
|
|
278 |
|
|
|
449 |
|
|
|
|
1,479 |
|
|
|
1,923 |
|
|
Interest on federal funds sold |
|
|
20 |
|
|
|
8 |
|
|
|
|
74 |
|
|
|
226 |
|
|
Other interest income |
|
|
135 |
|
|
|
69 |
|
|
|
|
490 |
|
|
|
348 |
|
|
Total interest income |
|
|
8,523 |
|
|
|
11,254 |
|
|
|
|
37,373 |
|
|
|
52,321 |
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
Deposit |
|
|
3,164 |
|
|
|
4,496 |
|
|
|
|
17,135 |
|
|
|
20,289 |
|
|
Other |
|
|
867 |
|
|
|
1,244 |
|
|
|
|
4,045 |
|
|
|
4,938 |
|
|
Total interest expenses |
|
|
4,031 |
|
|
|
5,740 |
|
|
|
|
21,180 |
|
|
|
25,227 |
|
|
Net interest income before |
|
|
|
|
|
|
|
|
|
|
provision for loan losses |
|
|
4,492 |
|
|
|
5,514 |
|
|
|
|
16,193 |
|
|
|
27,094 |
|
|
Provision for loan losses |
|
|
3,309 |
|
|
|
19,446 |
|
|
|
|
50,815 |
|
|
|
29,786 |
|
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
556 |
|
|
|
635 |
|
|
|
|
2,427 |
|
|
|
2,547 |
|
|
Gain on sale of loans |
|
|
88 |
|
|
|
17 |
|
|
|
|
360 |
|
|
|
723 |
|
|
Gain on sale of investment securities |
|
|
334 |
|
|
|
- |
|
|
|
|
358 |
|
|
|
- |
|
|
Other operating income |
|
|
541 |
|
|
|
213 |
|
|
|
|
(1,415 |
) |
|
|
1,989 |
|
|
Total non-interest income |
|
|
1,519 |
|
|
|
865 |
|
|
|
|
1,730 |
|
|
|
5,259 |
|
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
2,311 |
|
|
|
2,999 |
|
|
|
|
9,497 |
|
|
|
12,273 |
|
|
Net occupancy and equipment expense |
|
|
1,282 |
|
|
|
1,298 |
|
|
|
|
5,071 |
|
|
|
4,974 |
|
|
Other operating expense |
|
|
2,824 |
|
|
|
1,669 |
|
|
|
|
9,866 |
|
|
|
6,802 |
|
|
Total non-interest expenses |
|
|
6,417 |
|
|
|
5,966 |
|
|
|
|
24,434 |
|
|
|
24,049 |
|
|
Income before income taxes |
|
|
(3,715 |
) |
|
|
(19,033 |
) |
|
|
|
(57,326 |
) |
|
|
(21,482 |
) |
|
Income taxes |
|
|
20,234 |
|
|
|
(7,597 |
) |
|
|
|
(896 |
) |
|
|
(8,597 |
) |
|
Income before extraordinary items |
|
|
(23,949 |
) |
|
|
(11,435 |
) |
|
|
|
(56,430 |
) |
|
|
(12,885 |
) |
|
Extraordinary items, net of taxes |
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
Net income |
|
|
(23,949 |
) |
|
|
(11,435 |
) |
|
|
|
(56,430 |
) |
|
|
(12,885 |
) |
|
Net income per share - |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(1.49 |
) |
|
$ |
(0.85 |
) |
|
|
$ |
(3.52 |
) |
|
$ |
(1.04 |
) |
|
Diluted |
|
$ |
(1.49 |
) |
|
$ |
(0.85 |
) |
|
|
$ |
(3.52 |
) |
|
$ |
(1.04 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic average common shares |
|
|
|
|
|
|
|
|
|
|
outstanding |
|
|
16,032,429 |
|
|
|
13,437,445 |
|
|
|
|
16,032,429 |
|
|
|
12,401,413 |
|
|
Diluted average common shares |
|
|
|
|
|
|
|
|
|
|
outstanding |
|
|
16,032,429 |
|
|
|
13,437,445 |
|
|
|
|
16,035,433 |
|
|
|
12,401,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge offs |
|
|
4,904 |
|
|
|
8,512 |
|
|
|
|
32,732 |
|
|
|
16,264 |
|
|
Recoveries |
|
|
466 |
|
|
|
333 |
|
|
|
|
1,797 |
|
|
|
386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three |
|
|
For the twelve |
|
|
|
months ended |
|
|
months ended |
|
|
|
31-Dec |
|
|
31-Dec |
|
|
|
|
2009 |
|
|
|
2008 |
|
|
|
|
2009 |
|
|
|
2008 |
|
|
Key Operating Ratios: |
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
-12.60 |
% |
|
|
-5.47 |
% |
|
|
|
-6.54 |
% |
|
|
-1.54 |
% |
|
Return on average equity |
|
|
-290.13 |
% |
|
|
-68.56 |
% |
|
|
|
-110.96 |
% |
|
|
-20.32 |
% |
|
Earning assets yield |
|
|
4.62 |
% |
|
|
5.63 |
% |
|
|
|
4.48 |
% |
|
|
6.52 |
% |
|
Interest rate on interest bearing |
|
|
|
|
|
|
|
|
|
|
liabilities |
|
|
2.33 |
% |
|
|
3.61 |
% |
|
|
|
3.11 |
% |
|
|
2.15 |
% |
|
Net interest margin |
|
|
2.44 |
% |
|
|
2.76 |
% |
|
|
|
1.94 |
% |
|
|
3.38 |
% |
|
Cost of funds |
|
|
1.96 |
% |
|
|
3.01 |
% |
|
|
|
2.63 |
% |
|
|
3.29 |
% |
|
Efficiency ratio |
|
|
106.75 |
% |
|
|
93.52 |
% |
|
|
|
136.33 |
% |
|
|
74.33 |
% |
|
Average stockholders' equity to |
|
|
|
|
|
|
|
|
|
|
average total assets |
|
|
4.34 |
% |
|
|
7.98 |
% |
|
|
|
5.89 |
% |
|
|
7.58 |
% |
Contact:
Saehan Bancorp
Daniel Kim
Senior Vice President & Chief Financial Officer
(213) 637-4802
or
Maier & Company, Inc.
Gary S. Maier
(310) 442-9852
|
