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Saehan Bancorp Message Board

  • sambordulac sambordulac Sep 26, 2010 9:09 AM Flag

    2Q10 after the recap

    Keep in mind that the core earning (pre-tax, pre-provision income) was negative in the past 5 quarters.

    The new investment of $55 million strengthened balance sheet tremendously, however, loss continued. As of end of 2Q, 9.8% of loans are past due, the provision for losses stuod at 6.01%.
    Lots depend on what happens to economy, unemployment, etc. Too much, for any reasonable projection. There is no immediate danger for the bank to go back to emergency room. Further out, we just don't know.

    Core earnings is worrisome, it needs to bring down the cost of funding, but then it depends so much on brokered deposits. At the mean time it needs to spend more to keep up with collection and foreclosure. No easy way out.

    I am still curious what the new investor saw in Saehan. For my money, investment in Wilshire, Nara and Center bank at around book value seems to make more sense. Needless to say, I won't touch Saehan below $0.37.

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