LOS ANGELES--()--Saehan Bancorp (OTCBB:SAEB) today announced preliminary financial results for its fourth quarter and year ended December 31, 2012, reflecting continued improvement in asset quality.
“Results for 2012 reflect continued progress in efforts to reduce nonperforming assets and generating modest earnings on our road to recovery. We are in the process of implementing various initiatives to enhance operating results and look forward to further improvements in 2013”
The company reported net income of $18,000, or $0.0001 per share for the fourth quarter of 2012 compared with a net loss of $6,000, or $0.0005 per share, in the same period a year ago. For the twelve-month period, Saehan Bancorp reported net income of $174,000, or $0.001 per diluted share, compared with $1.9 million, or $0.01 per diluted share, for 2011.
Additional highlights for the year and fourth quarter of 2012 include:
- Total assets at December 31, 2012 were $602.6 million compared with $577.1 million a year ago.
- Net loans were $348.1 million at December 31, 2012 compared with $362.9 million last year.
- Total deposits at December 31, 2012 were $519.0 million compared with $488.8 million at December 31, 2011.
- Net interest margin for 2012 was 2.53 percent compared with 2.98 percent reported for 2011.
- Nonperforming loans at December 31, 2012 were $4.7 million compared with $18.8 million at December 31, 2011.
- Allowance for loan losses was 3.88 percent of total loans at December 31, 2012 compared with 4.75 percent at December 31, 2011.
“Results for 2012 reflect continued progress in efforts to reduce nonperforming assets and generating modest earnings on our road to recovery. We are in the process of implementing various initiatives to enhance operating results and look forward to further improvements in 2013," said Dong Il Kim, president and chief executive officer.
Net interest income before provision for loan losses was $3.6 million in the fourth quarter of 2012 compared with $4.2 million in the fourth quarter of 2011. For the fourth quarter of 2012, net interest margin was 2.43 percent compared with 3.00 percent in the same quarter a year earlier. For the full year, net interest income and the net interest margin before provision for loan losses were $15.1 million and 2.53 percent, respectively, compared with $16.8 million and 2.98 percent, respectively, for 2011.
For the fourth quarter of 2012, noninterest income totaled $1.8 million compared with $713,000 in the fourth quarter of 2011. For the full year, noninterest income was $6.5 million compared with $6.7 million reported in 2011. The increase in noninterest income during the fourth quarter of 2012 was attributable to a $576,000 payment received in a legal settlement.
Noninterest expense for the fourth quarter of 2012 was $5.4 million, an increase of $488,000 from the fourth quarter of 2011. For the full year, noninterest expense was $21.4 million compared with $21.7 million in 2011. The decrease in noninterest expense for the full year of 2012 was primarily attributable to decreases in occupancy expense, FDIC assessment fees and loan related expenses.
The efficiency ratio for the fourth quarter of 2012 was 99.6 percent compared with 100.1 percent in the fourth quarter of 2011. The efficiency ratio for the full year was 99.2 percent compared with 92.4 percent for 2011.
Nonperforming loans and OREO were $7.6 million at December 31, 2012 compared with $23.8 million at December 31, 2011. Nonperforming assets represented 1.3 percent of total assets at December 31, 2012 compared with 4.1 percent at December 31, 2011. A loan loss provision was not necessary for the fourth quarter and full year of 2012.
Shareholders’ equity totaled $58.5 million at December 31, 2012 compared with $58.6 million at December 31, 2011. Saehan’s leverage Ratio was 12.8 percent, the Tier 1 Risk-based Capital Ratio was 20.9 percent and the Total Risk-based Capital Ratio was 22.4 percent at December 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 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||16,394||21,645|
|Due from banks-interest bearing||180,934||78,844|
|Federal fund sold||6,400||70,565|
|Less: Allowance for loan losses||13,507||17,221|
|Loans held for sale||1,788||2,837|
|Bank premises and equipment, net||1,666||2,100|
|Other real estate owned||2,899||5,009|
|Direct & indirect investments in real estate||-||600|
|Liabilities and stockholders' equity:|
|Noninterest bearing demand||148,466||137,518|
|Interest bearing demand and savings||190,204||148,229|
|Other borrowed money||-||5,000|
|Junior subordinated debenture||22,189||21,765|
|Total stockholders' equity||58,472||58,553|
|Total liabilities and|
|Book value per share||0.25||0.25|
|Period end shares outstanding||237,197,874||237,197,874|
|Tier I leverage ratio||12.84||%||13.66||%|
|Tier 1 risk-based capital ratio||20.94||%||18.85||%|
Total risk-based capital ratio
|Condensed Income Statement and Comprehensive Income|
|(Dollars in thousands except per share data)|
|For the three||
For the twelve
|months ended||months ended|
|Interest and fees on loans||4,759||5,532||20,129||23,951|
|Interest on securities||81||146||488||783|
|Interest on federal funds sold||13||37||88||126|
|Other interest income||194||100||620||312|
|Total interest income||5,047||5,815||21,325||25,172|
|Total interest expenses||1,436||1,645||6,263||8,327|
|Net interest income before|
provision for loan losses
Provision for loan losses
|Service charges on deposit accounts||487||442||1,723||1,916|
|Gain on sale of loans||371||300||2,254||2,832|
|Gain on sale of investment securities||-||-||886||3|
|Gain (loss) on sales of OREO||(24||)||(489||)||(811||)||74|
|Other operating income||953||460||2,467||1,864|
|Total non-interest income||1,787||713||6,519||6,689|
|Salaries and employee benefits||2,845||2,376||10,131||9,004|
|Net occupancy and equipment expense||982||1,101||3,938||4,547|
|Other operating expense||1,551||1,413||7,335||8,186|
|Total non-interest expenses||5,378||4,890||21,404||21,737|
|Income before income taxes||20||(7||)||177||1,797|
Income before extraordinary items
|Extraordinary items, net of taxes||-||-||-||-|
|Net income per share -|
|Basic average common shares|
|Diluted average common shares|
|For the three||
For the twelve
|months ended||months ended|
|Key Operating Ratios:|
|Return on average assets||0.00||%||0.00||%||0.03||%||0.34||%|
|Return on average equity||0.03||%||-0.04||%||0.30||%||3.90||%|
|Earning assets yield||3.37||%||4.18||%||3.58||%||4.46||%|
|Interest rate on interest bearing|
|Net interest margin||2.43||%||3.00||%||2.53||%||2.98||%|
|Cost of funds||1.05||%||1.42||%||1.16||%||1.62||%|
|Average stockholders' equity to|
|average total assets||9.54||%||10.36||%||9.62||%||8.61||%|