Business & Finance
Business and Finance
Business and Finance
Fri, May 27, 2011
Thu, May 26, 2011 Saehan Bancorp Reports Improved First Quarter Results
LOS ANGELES--([ BUSINESS WIRE ])--Saehan Bancorp (OTCBB:SAEB) today reported results for its first quarter ended March 31, 2011, reflecting improved earnings and stabilized asset quality.
"Results for the first quarter reflect significant progress in improving the banka™s asset quality and returning our institution to profitability"
The company reported net income of $825,000, or $0.004 per share, for the first quarter of 2011 compared with a net loss of $5.9 million, or $0.10 per share, a year ago. The return on average equity for the first quarter of 2011 was 7.39 percent and the return on average assets was 0.56 percent compared with -107.72 percent and -3.65 percent, respectively, for the first quarter of 2010.
Other highlights for the first quarter of 2011 included:
- Total assets were $578.6 million compared with $650.2 million in the same period a year ago.
- Net loans decreased $116.5 million from the same period a year ago.
- Total deposits decreased $32.6 million, or 6.1 percent, from a year earlier.
- Net interest margin was 2.80 percent compared with 2.94 percent for the first quarter of 2010.
- An improved efficiency ratio of 86.7 percent, compared with 120.5 percent for the first quarter a year earlier.
- The ratio of nonperforming loans to total loans was 7.4 percent compared with 8.5 percent at March 31, 2010.
- Noninterest income excluding loss on sale of OREOs was $1.7 million compared with $1.1 million for the first quarter of 2010.
- Noninterest expense was $5.3 million compared with $5.2 million for the first quarter of 2010.
aResults for the first quarter reflect significant progress in improving the banka™s asset quality and returning our institution to profitability,a said Dong Il Kim, president and chief executive officer.
He noted that management continues to focus on further reducing problem assets and improving earnings, while formulating strategies to capitalize on future opportunities as the economic environment begins to improve.
Net interest income before provision for loan losses was $4.2 million in the first quarter of 2011 compared with $4.7 million in the same period a year ago. Net interest margin for the first quarter of 2011 was 2.80 percent compared with 2.94 percent in the first quarter a year earlier. The decrease in net interest margin from the same quarter a year ago was attributable to a $696,000 advance prepayment fee for the early termination of $20 million in Federal Home Loan Bank Advances. Yield on earning assets for the first quarter of 2011 was 4.49 percent compared with 4.86 percent for the first quarter of 2010. Cost of funds for the first quarter of 2011 was 1.72 percent compared with 1.70 percent for the first quarter of 2010.
Noninterest income excluding loss on sale of OREOs in the first quarter of 2011 totaled $1.7 million compared with $1.1 million a year ago. The increase was primarily attributable to a $753,000 gain on the sale of SBA loans in the first quarter of 2011.
Noninterest expense for the first quarter of 2011 was $5.4 million compared with $5.3 million for the first quarter of 2010. The slight increase in noninterest expense for the first quarter of 2011 was primarily attributable to a slight increase in salary and employee benefit expenses. The efficiency ratio for the first quarter of 2011 was 86.7 percent compared with 120.5 percent in the first quarter of 2010.
Nonperforming loans were $32.1 million at March 31, 2011 -- down $14.6 million from $46.7 million at March 31, 2010. Nonperforming loans and OREO represented 8.8 percent of total assets at March 31, 2011. No loan loss provision was recorded for the first quarter of 2011 compared with $5.0 million a year ago.
Total assets were $578.6 million as of March 31, 2011 -- representing a decrease of $71.6 million, or 11.0 percent, from the $650.2 million in total assets reported on March 31, 2010. Total deposits as of March 31, 2011 decreased $32.6 million, or 6.1 percent, to $497.8 million from $530.4 million as of March 31, 2010. Management has intentionally reduced the amount of total assets and deposits in order to improve the banka™s Tier One Leverage Ratio while maintaining an adequate amount of liquidity.
Shareholdersa™ equity was $45.5 million at March 31, 2011 compared with $60.3 million at March 31, 2010. Shareholdersa™ equity primarily decreased as a result of net losses incurred in the last four quarters. Capital ratios remained well above the aWell-Capitalizeda guidelines established by the regulatory agencies. The Leverage Ratio, Tier 1 Risk-based Capital Ratio and Total Risk-based Capital Ratio at March 31, 2011 were 10.3 percent, 13.2 percent and 15.6 percent, respectively, compared with 12.3 percent, 14.1 percent and 15.4 percent, respectively, at March 31, 2010.
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 abelieve,a aexpect,a aanticipate,a aintend,a aplan,a aestimate,a or words of similar meaning, or future or conditional verbs such as awill,a awould,a ashould,a acould,a or amay.a
| Saehan Bancorp | ||||
| Condensed Balance Sheet | ||||
| (Dollars in thousands) | ||||
March 31 | ||||
| 2011 | 2010 | |||
| Assets: | ||||
| Cash & due from banks - demand | 11,783 | 11,331 | ||
| Due from banks-interest bearing | 36,032 | 35,502 | ||
| Federal fund sold | 68,200 | 16,085 | ||
| Securities available-for-sale | 32,382 | 35,717 | ||
| Loans | 430,531 | 546,993 | ||
| Less: Allowance for loan losses | 23,891 | 36,922 | ||
| Net loans | 406,640 | 510,071 | ||
| Loans held for sale | 4,198 | - | ||
| Bank premises and equipment, net | 2,695 | 3,879 | ||
| Other assets | 16,677 | 37,596 | ||
| Total assets | 578,607 | 650,181 | ||
| Liabilities and stockholders' equity: | ||||
| Deposits: | ||||
| Noninterest bearing demand | 129,399 | 115,709 | ||
| Interest bearing demand and savings | 150,837 | 52,566 | ||
| Time deposits | 217,590 | 362,103 | ||
| Total deposits | 497,826 | 530,378 | ||
| Jr. Subordinated debenture | 21,470 | 20,619 | ||
| Other borrowed money | 11,582 | 30,000 | ||
| Other liabilities | 2,204 | 8,850 | ||
| Total liabilities | 533,082 | 589,847 | ||
| Total stockholders' equity | 45,525 | 60,334 | ||
Total liabilities and stockholders' equity | 578,607 | 650,181 | ||
| Book value per share | 0.31 | 0.31 | ||
| Period end shares outstanding | 189,097,874 | 189,097,874 | ||
| Nonperforming loans | 32,065 | 46,673 | ||
| Tier I leverage ratio | 10.32% | 12.32% | ||
| Tier 1 risk-based capital ratio | 13.20% | 14.06% | ||
Total risk-based capital ratio | 15.58% | 15.38% | ||
| Saehan Bancorp | ||||||||
| Condensed Income Statement and Comprehensive Income | ||||||||
| (Dollars in thousands except per share data) | ||||||||
| For the three | ||||||||
| months ended | ||||||||
| March 31 | ||||||||
| 2011 | 2010 | |||||||
| Interest income: | ||||||||
| Interest and fees on loans | 6,459 | 7,530 | ||||||
| Interest on securities | 272 | 182 | ||||||
| Interest on federal funds sold | 26 | 14 | ||||||
| Other interest income | 61 | 23 | ||||||
| Total interest income | 6,818 | 7,749 | ||||||
| Interest expense: | ||||||||
| Deposit | 1,702 | 2,520 | ||||||
| Other | 949 | 549 | ||||||
| Total interest expenses | 2,651 | 3,069 | ||||||
Net interest income before provision for loan losses | 4,167 | 4,680 | ||||||
Provision for loan losses | - | 5,017 | ||||||
| Non-interest income: | ||||||||
| Service charges on deposit accounts | 507 | 532 | ||||||
Gain (loss) on sale of loans | 753 | - | ||||||
| Gain on sale of investment securities | 3 | 32 | ||||||
| Gain (loss) on sales of OREO | 321 | (1,374 | ) | |||||
| Other operating income | 474 | 496 | ||||||
| Total non-interest income | 2,058 | (314 | ) | |||||
| Non-interest expense: | ||||||||
| Salaries and employee benefits | 2,151 | 2,091 | ||||||
| Net occupancy and equipment expense | 1,168 | 1,235 | ||||||
| Other operating expense | 2,080 | 1,934 | ||||||
| Total non-interest expenses | 5,399 | 5,260 | ||||||
| Income before income taxes | 826 | (5,911 | ) | |||||
| Income taxes | 1 | - | ||||||
Income before extraordinary items | 825 | (5,911 | ) | |||||
| Extraordinary items, net of taxes | - | - | ||||||
| Net income | 825 | (5,911 | ) | |||||
| Net income per share - | ||||||||
| Basic | $ | 0.004 | $ | (0.098 | ) | |||
| Diluted | $ | 0.004 | $ | (0.098 | ) | |||
Basic average common shares outstanding | 189,097,874 | 60,260,265 | ||||||
Diluted average common shares outstanding | 189,097,874 | 60,260,265 | ||||||
| Charge offs | 3,127 | 10,323 | ||||||
| Recoveries | 833 | 191 | ||||||
| For the three | ||||||||
| months ended | ||||||||
| March 31 | ||||||||
| 2011 | 2010 | |||||||
| Key Operating Ratios: | ||||||||
| Return on average assets | 0.56 | % | -3.65 | % | ||||
| Return on average equity | 7.39 | % | -107.72 | % | ||||
| Yield on earning assets | 4.59 | % | 4.86 | % | ||||
| Cost on interest bearing liabilities | 2.18 | % | 2.08 | % | ||||
| Net interest margin | 2.80 | % | 2.94 | % | ||||
| Cost of funds | 1.72 | % | 1.70 | % | ||||
| Efficiency ratio | 86.73 | % | 120.48 | % | ||||
