LOS ANGELES--(BUSINESS WIRE)--
Saehan Bancorp (SAEB) today reported results for its first quarter ended March 31, 2013 – reflecting continued asset quality improvement and related loan portfolio strategic initiatives to reduce costs.
The company reported net income of $43,000, or $0.0002 per share, for the first quarter of 2013 compared with net income of $109,000, or $0.0005 per share, a year ago. The return on average equity for the first quarter of 2013 was 0.29 percent and the return on average assets was 0.03 percent compared with 0.74 percent and 0.07 percent, respectively, for the first quarter of 2012.
Other highlights for the first quarter of 2013 included:
- Total assets were $542.4 million compared with $602.4 million in the same period a year ago.
- Net loans increased 7.52 percent to $362.2 million from $336.9 million in the same period a year ago.
- Total deposits were $458.8 million compared with $514.9 million a year earlier, reflecting management’s strategic decision to not renew higher-cost brokered deposits that became due in March 2013.
- Net interest margin was 2.51 percent compared with 2.82 percent for the first quarter of 2012.
- The ratio of nonperforming loans to total loans was 1.3 percent compared with 3.2 percent at March 31, 2012.
- Allowance for loan losses was 3.46 percent of total loans at March 31, 2013 compared with 4.78 percent at March 31, 2012.
“Results for the first quarter reflect continued progress in improving asset quality. We remain particularly focused on loan portfolio growth and cost-savings initiatives to enhance profitability, and look forward to gaining momentum in the quarters ahead,” said Dong Il Kim, president and chief executive officer.
Net interest income before provision for loan losses was $3.6 million in the first quarter of 2013 compared with $4.0 million in the same period a year ago. Net interest margin for the first quarter of 2013 was 2.51 percent compared with 2.82 percent in the same period a year earlier. Yield on earning assets for the first quarter of 2013 was 3.57 percent compared with 3.97 percent a year ago. Cost of funds for the first quarter of 2013 was 1.02 percent compared with 1.33 percent in the same period a year earlier.
Noninterest income in the first quarter of 2013 totaled $1.3 million compared with $1.1 million a year ago. The increase was primarily attributable to a $424,000 increase in gain on the sale of SBA loans and $51,000 increase in services charges on deposit accounts.
Noninterest expense for the first quarter of 2013 was $4.9 million compared with $4.9 million for the first quarter of 2012. The $388,000 increase in salaries and employee benefits was offset by a decrease in loan related expenses such as legal and foreclosure expenses. The efficiency ratio for the first quarter of 2013 was 99.1 percent compared with 97.8 percent in the first quarter of 2012.
Nonperforming loans declined to $4.8 million at March 31, 2013 from $11.5 million at March 31, 2012. Nonperforming loans and OREO represented 1.36 percent of total assets at March 31, 2013 compared with 2.65 percent as of March 31, 2012. No loan loss provision was recorded for the first quarters of 2013 and 2012.
Total assets were $542.4 million as of March 31, 2013 compared with $602.4 million a year earlier. Total deposits as of March 31, 2013 were $458.8 million compared with $514.9 million a year ago. Deposit and asset reductions were attributable to a $50.0 million decrease in brokered deposits in March 2013, as noted in the highlights above.
Shareholders’ equity was $58.5 million at March 31, 2013 compared with $58.9 million at March 31, 2012. Capital ratios remained 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 March 31, 2013 were 13.3 percent, 20.3 percent and 21.7 percent, respectively, compared with 13.3 percent, 21.2 percent and 22.6 percent, respectively, at March 31, 2012.
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 United States. Saehan Bancorp is committed to satisfying customers and creating shareholder value. Its ten retail branch offices, International Department and SBA Department 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||13,773||20,602|
|Due from banks-interest bearing||85,164||183,813|
|Federal fund sold||25,745||4,625|
|Less: Allowance for loan losses||12,994||16,909|
|Loans held for sale||3,185||5,964|
|Bank premises and equipment, net||1,652||2,014|
|Liabilities and stockholders' equity:|
|Noninterest bearing demand||159,510||141,717|
|Interest bearing demand and savings||177,946||165,357|
|Jr. Subordinated debenture||22,286||21,876|
|Other borrowed money||-||5,000|
|Total stockholders' equity||58,462||58,923|
Total liabilities and stockholders' equity
|Book value per share||0.25||0.25|
|Period end shares outstanding||237,197,874||237,197,874|
|Tier I leverage ratio||13.26||%||13.29||%|
|Tier 1 risk-based capital ratio||20.25||%||21.18||%|
Total risk-based capital ratio
|Condensed Income Statement and Comprehensive Income|
|(Dollars in thousands except per share data)|
|For the three|
|Interest and fees on loans||4,672||5,330|
|Interest on securities||90||162|
|Interest on federal funds sold||12||27|
|Other interest income||192||126|
|Total interest income||4,966||5,645|
|Total interest expenses||1,345||1,640|
Net interest income before provision for loan losses
Provision for loan losses
|Service charges on deposit accounts||469||418|
|Gain(loss) on sale of loans||424||-|
|Gain on sale of investment securities||-||-|
|Gain (loss) on sales of OREO||(21||)||-|
|Other operating income||420||632|
|Total non-interest income||1,292||1,050|
|Salaries and employee benefits||2,620||2,232|
|Net occupancy and equipment expense||921||1,060|
|Other operating expense||1,326||1,652|
|Total non-interest expenses||4,867||4,944|
|Income before income taxes||46||111|
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|
|Key Operating Ratios:|
|Return on average assets||0.03||%||0.07||%|
|Return on average equity||0.29||%||0.74||%|
|Yield on earning assets||3.57||%||3.97||%|
|Cost on interest bearing liabilities||1.08||%||1.36||%|
|Net interest margin||2.51||%||2.82||%|
|Cost of funds||1.02||%||1.33||%|
- Investment & Company Information
Executive Vice President & Chief Financial Officer
Maier & Company, Inc.
Gary S. Maier