Saehan Bancorp Reports Third Quarter Results.LOS ANGELES Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. -- Saehan Bancorp (OTCBB OTCBB
See OTC Bulletin Board (OTCBB). :SAEB SAEB Special Army Evaluation Board ) today reported results for its third quarter ended September 30, 2007 -- reflecting continued earnings growth supported by strong deposit and loan activity.
Net income for the third quarter climbed 6.5 percent to $1.8 million, or $0.16 per diluted di·lute
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.
2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, from $1.7 million, or $0.15 per diluted for the same quarter of previous year. For the nine months ended September 30, 2007, net income was $5.3 million, or $0.47 per diluted share, compared with $4.8 million, or $0.42 per diluted share for the same period of 2006. The return on average equity for the third quarter of 2007 was 12.18 percent and the return on average assets was 0.96 percent, compared with 13.90 percent and 1.19 percent, respectively, for the third quarter of 2006.
Other highlights for the third quarter of 2007 included:
* Noninterest bearing demand deposits increased $10.3 million, or 9.2 percent compared with those at September 30, 2006 -- representing 20.6 percent of total deposits at quarter end.
* Net loans increased $204.9 million, or 43.6 percent, over the same period a year ago.
* Total deposits increased $68.8 million, or 13.1 percent, over a year ago.
* Net interest margin was 4.27 percent, compared with 4.62 percent reported in the third quarter of 2006.
* Efficiency ratio remained at 66.6 percent, the same level as the third quarter of 2006.
* The ratio of nonperforming loans to net loans was 0.86 percent compared with 0.33 percent at September 30, 2006.
"The third quarter results show that Saehan Bank continues to grow steadily to achieve an economy of scale," said Benjamin Hong, president and chief executive officer of Saehan Bancorp. "We are particularly encouraged by the bank's financial performance in many areas of operation -- including loan production and deposit activity, despite the falling interest rate environment and increasing competitions," Hong added.
Net interest income before provision for loan losses was $7.7 million in the third quarter of 2007 compared with $6.3 million in the same period a year ago. Net interest margin for the third quarter of 2007 was 4.27 percent compared with 4.62 percent last year. Net interest income increased 21.2 percent, primarily due to the $204.9 million increase in net loans, partially offset by the increase in deposits and other borrowings, and the increase in cost of funds Cost of Funds
The interest rate paid on an outstanding loan.
Money isn't free! Cost of funds is the cost of borrowing money.
See also: Interest Rate
Cost of funds
Interest rate associated with borrowing money. . Cost of funds in the third quarter of 2007 was 4.06 percent compared with 3.82 percent in the third quarter of 2006.
Non-interest income in the third quarter of 2007 was $1.9 million compared with $1.5 million for the third quarter of 2006. The $427,000 increase in non-interest income was due primarily to a $196,000 gain on the sale of loans and $157,000 in service charges on deposits.
Non-interest expense for the third quarter of 2007 was $6.4 million compared with $5.2 million earlier -- higher employee compensation as well as higher occupancy and equipment expenses related to the bank's expansion initiatives. The efficiency ratio for the third quarter of 2007 was 66.6 percent compared with 66.6 percent in the third quarter of 2006.
Nonperforming loans were $5.8 million at September 30, 2007 compared with $1.6 million at September 30, 2006. Nonperforming loans and OREO represented 0.74 percent of total assets at September 30, 2007. The provision for loan losses was $266,000 for the third quarter of 2007.
Total assets were $781.5 million as of September 30, 2007 -- representing an increase of $182.6 million, or 30.5 percent, compared with $598.5 million in total assets reported on September 30, 2006. Total deposits as of September 30, 2007 increased $68.8 million, or 13.1 percent, to $594.0 million from $525.3 million as of September 30, 2006.
Shareholders' equity Shareholders' Equity
A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. increased to $59.7 million at September 30, 2007 from $50.7 million at September 30, 2006 -- primarily due to improved earnings and the exercise of stock options. Capital ratios continue to be well above the "Well-Capitalized" guidelines guidelines,
n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. established by the regulatory agencies regulatory agency
Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. . The Leverage Ratio was 10.72%, the Tier 1 Risk-based Capital Ratio Risk-based capital ratio
Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. was 11.25% and the Total Risk-based Capital Ratio was 12.22% as of September 30, 2007.
About Saehan Bancorp
Saehan Bancorp is a bank holding company with headquarters in Los Angeles, California. Its wholly owned subsidiary Wholly Owned Subsidiary
A subsidiary whose parent company owns 100% of its common stock.
In other words, the parent company owns the company outright and there are no minority owners. , 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 nine retail branch offices, International Department, SBA SBA
Small Business Administration
Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government Department, and Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page. Department of Saehan Bank focus on fulfilling these commitments to customers and shareholders.
Safe Harbor Safe Harbor
1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.
2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement
This press release may contain forward-looking statements forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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."
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