LOS ANGELES--()--Saehan Bancorp (OTCBB:SAEB) today announced financial results for its second quarter ended June 30, 2012 – reflecting an increase in total assets, deposits and a decrease in nonperforming loans.
“We made a significant progress in improving asset quality in the second quarter of 2012, and continue to focus on implementing various cost-savings initiatives to further improve operating results”
The company reported a net loss of $259,000, or $0.001 per share for the second quarter of 2012 compared with net income of $368,000, or $0.002 per diluted share, in the same period a year ago. The return on average equity for the second quarter of 2012 was -1.78 percent and the return on average assets was -0.17 percent compared with 3.22 percent and 0.26 percent, respectively, for the second quarter of 2011.
Additional highlights for the second quarter of 2012 include:
- Total assets at June 30, 2012 increased 11.3 percent to $608.7 million from $546.7 million a year ago.
- Net loans were $351.1 million at June 30, 2012 compared with $377.7 million last year.
- Total deposits at June 30, 2012 increased 10.8 percent to $521.9 million from $471.1 million at June 30, 2011.
- Net interest margin for the second quarter of 2012 was 2.42 percent compared with 2.91 percent reported in the same period a year ago.
- Efficiency for the second quarter of 2012 was 104.7 percent compared with 94.0 percent in the second quarter of 2011.
- Nonperforming loans at June 30, 2012 decreased to $10.1 million from $23.4 million at June 30, 2011.
“We made a significant progress in improving asset quality in the second quarter of 2012, and continue to focus on implementing various cost-savings initiatives to further improve operating results,” said Dong Il Kim, president and chief executive officer.
Net interest income before provision for loan losses was $3.6 million in the second quarter of 2012 compared with 4.0 million in the second quarter of 2011. For the second quarter of 2012, net interest margin was 2.42 percent compared with 2.91 percent in the second quarter of 2011. Net interest income and margin decreased as a result of reducing the non-performing loans. Cost of funds and yield on earnings assets for the second quarter of 2012 were 1.29 percent and 3.52 percent, respectively, compared with 2.03 percent and 4.64 percent, respectively, for the second quarter of 2011.
Noninterest income in the second quarter of 2012 totaled $1.9 million compared with $2.2 million in the second quarter of 2011. The decrease in noninterest income is primarily attributable to the $484,000 decrease in gain on sale of loans and $420,000 loss on sale of OREOs, partially offset by $790,000 of gain on sale of investment securities.
Noninterest expense for the second quarter of 2012 was $5.8 million, unchanged from the second quarter of 2011. The $269,000 increase in employee salaries and benefit expense was partially offset by the $258,000 reduction in occupancy and equipment expense in the second quarter of 2012.
The efficiency ratio for the second quarter of 2012 was 104.7 percent compared with 94.0 percent in the second quarter of 2011.
Nonperforming loans and OREO were $12.3 million at June 30, 2012, compared with $30.0 million at June 30, 2011. Nonperforming assets represented 2.0 percent of total assets at June 30, 2012.
Shareholders’ equity was $58.1 million at June 30, 2012 compared with $45.9 million at June, 2011. Shareholders’ equity primarily increased as a result of a $12.0 million common stock equity offering completed in September 2011 and positive earnings in the prior quarters. Capital ratios remained to be well above the “Well-Capitalized” guidelines established by the regulatory agencies. The Leverage Ratio, Tier 1 Risk-based Capital Ratio and Total Risk-based Capital Ratio at June 30, 2012 were 12.7 percent, 22.1 percent and 20.6 percent, respectively, compared with 10.8 percent, 17.0 percent and 14.6 percent, respectively at June 30, 2011.
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.”
|Condensed Balance Sheet|
|(Dollars in thousands)|
|Cash & due from banks - demand||16,706||12,250|
|Due from banks-interest bearing||195,275||67,394|
|Federal fund sold||5,540||36,710|
|Less: Allowance for loan losses||15,808||22,940|
|Loans held for sale||652||2,984|
|Bank premises and equipment, net||1,871||2,443|
|Other real estate owned||2,176||6,635|
|Liabilities and stockholders' equity:|
|Noninterest bearing demand||143,127||130,423|
|Interest bearing demand and savings||171,760||239,894|
|Total stockholders' equity||58,089||45,944|
Total liabilities and stockholders' equity
|Book value per share||0.24||0.24|
|Period end shares outstanding||237,197,874||189,097,874|
|Tier I leverage ratio||12.74%||10.81%|
|Tier 1 risk-based capital ratio||20.62%||14.55%|
Total risk-based capital ratio
|Condensed Income Statement and Comprehensive Income|
|(Dollars in thousands except per share data)|
|For the three||For the six|
|months ended||months ended|
|Interest and fees on loans||4,919||6,093||10,249||12,552|
|Interest on securities||133||201||295||473|
|Interest on federal funds sold||24||27||51||53|
|Other interest income||156||79||282||140|
|Total interest income||5,232||6,400||10,877||13,218|
|Total interest expenses||1,637||2,379||3,277||5,030|
Net interest income before provision for loan losses
Provision for loan losses
|Service charges on deposit accounts||401||486||819||993|
|Gain on sale of loans||671||1,155||671||1,908|
|Gain on sale of investment securities||790||-||790||3|
|Gain (loss) on sales of OREO||(420||)||79||(420||)||400|
|Other operating income||495||437||1,127||911|
|Total non-interest income||1,937||2,157||2,987||4,215|
|Salaries and employee benefits||2,555||2,286||4,787||4,437|
|Net occupancy and equipment expense||954||1,212||2,014||2,380|
|Other operating expense||2,281||2,312||3,933||4,392|
|Total non-interest expenses||5,790||5,810||10,734||11,209|
|Income before income taxes||(258||)||368||(147||)||1,194|
Income before extraordinary items
|Extraordinary items, net of taxes||-||-||-||-|
|Net income per share -|
Basic average common shares outstanding
Diluted average common shares outstanding
|For the three||For the six|
|months ended||months ended|
|Key Operating Ratios:|
|Return on average assets||-0.17||%||0.26||%||-0.05||%||0.42||%|
|Return on average equity||-1.78||%||3.22||%||-0.51||%||5.28||%|
|Yield on earning assets||3.52||%||4.64||%||4.03||%||4.64||%|
|Cost on interest bearing liabilities||1.29||%||2.03||%||1.79||%||2.55||%|
|Net interest margin||2.42||%||2.91||%||2.82||%||2.87||%|
|Cost of funds||1.25||%||1.85||%||1.32||%||1.92||%|