WESTMINSTER, Calif., July 28, 2006 (PRIMEZONE) -- Saigon National Bank (OTCBB:SAGN) announced the results of operations for the three and six months ending June 30, 2006 with a net loss of $334,510 or $0.24 per share and of $739,957 or $0.52 per share for the three and six months ended June 30, 2006, respectively. This is the first full six months of operations for the Bank, which opened November 30, 2005. John J. Kennedy, President and Chief Executive Officer, stated, "The net loss for the six months was projected to be 40% higher but prudent cost control efforts by the bank prevented a higher loss."
Total assets were $18.3 million at June 30, 2006 compared to $17.2 million at December 31, 2005. At June 30, 2006 the loan portfolio totaled $3.9 million and deposits totaled $6.0 million.
The Bank's net interest income for the three months ended June 30, 2006 was $175,957 and $322,347 for the six months ended June 30, 2006. Average interest-earning assets were $17.1 million and $16.5 million with average interest-bearing liabilities of $5.7 million and $4.9 million, yielding a net interest margin of 4.11% and 3.84% for the three and six months ended June 30, 2006, respectively. General and administrative expenses were $494,667 and $1,013,704 and for the three and six months ended June 30, 2006, respectively. The largest component of general and administrative expenses was salary and benefits expense of $272,078 and $531,785 for the three and six months ended June 30, 2006, respectively.
Forward-Looking Statements
The statements contained in this release that are not historical facts are forward-looking statements based upon management's current expectations and beliefs concerning future developments and their potential effect on Saigon National Bank. There can be no assurances that future developments affecting Saigon National Bank will be the same as those anticipated by management.
Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties. These include, but are not limited to, the following risks: (1) changes in performance of the financial markets; (2) changes in the demand for and market acceptance of Saigon National Bank's products and services; (3) changes in general economic conditions including interest rates, presence of competitors with greater financial resources, and the impact of competitive products and pricing; (4) the effect of Saigon National Bank's policies; (5) the continued availability of adequate funding sources.
SAIGON NATIONAL BANK
BALANCE SHEETS
As of June 30, 2006 and December 31, 2005
(UNAUDITED)
June 30, December 31,
2006 2005
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Cash and Due from Banks $ 293,526 $ 81,623
Federal Funds Sold 7,052,000 8,145,000
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Total Cash and Cash Equivalents 7,345,526 8,226,623
Investment Securities Held to Maturity 5,929,008 7,704,961
Federal Reserve Bank Stock, at cost 387,500 407,900
Loans Receivable 3,834,196 3,062
Premises and Equipment 605,517 703,646
Accrued Interest and Other Assets 209,698 123,267
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Total Assets $ 18,311,444 $ 17,169,459
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Liabilities
Demand Deposits $ 896,181 $ 325,629
Interest Bearing Demand Accounts 55,158 80,012
Money Market Accounts 353,296 649,855
Savings Accounts 14,060 2,739
Time Certificates of Deposit 4,678,295 1,049,525
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Total Deposits 5,996,989 2,107,760
Federal Funds Purchased - 2,000,000
Accrued Interest and Other Liabilities 68,840 145,351
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Total Liabilities 6,065,829 4,253,111
Commitments and Contingencies - -
Shareholders' Equity:
Common Stock -- 10,000,000 Shares
Authorized, $5.00 Par Value;
1,413,519 Shares Issued and Outstanding 7,067,595 7,067,595
Additional Paid-in capital 7,106,051 7,036,828
Accumulated Deficit ( 1,928,032) (1,188,075)
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Total Shareholders' Equity 12,245,614 12,916,348
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Total Liabilities and
Shareholders' Equity $ 18,311,444 $ 17,169,459
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Saigon National Bank
Statement of Operations
For the Three Months and Six Months ended June 2006
(Unaudited)
Three Months Six Months
Ended Ended
June 30, 2006 June 30, 2006
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INTEREST INCOME
Interest and fees on loans $ 74,716 $ 90,956
Interest and dividends on
Investment Securities 83,181 151,998
Interest on Federal Funds Sold 77,419 178,040
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Total Interest Income 235,316 420,994
INTEREST EXPENSE
Interest on Deposits 59,349 97,992
Interest on Federal Funds Purchases 10 656
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Total Interest Expense 59,359 98,648
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Net Interest Income 175,957 322,347
Provision for Loan Losses 15,000 47,000
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Net Interest Income after
Provision for Loan Losses 160,957 275,347
NONINTEREST EXPENSE
Salaries and Employee Benefits 272,078 531,785
Occupancy and Equipment Expenses 86,512 171,100
Other Expenses 136,077 310,818
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Total Noninterest Expense 494,667 1,013,704
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Loss before Income Taxes 333,710 738,357
Income Taxes 800 1,600
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Net Loss $ 334,510 $ 739,957
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Net Loss per share-Basic $ (0.24) $ (0.52)
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Saigon National Bank
Ratios
For the three and six months ended June 30, 2006
For the six For the three
months ended months ended
6/30/2006 6/30/2006
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Deposit Mix -- Non-interest bearing 14.94% 14.94%
Deposit Mix -- Interest bearing 85.06% 85.06%
Liquidity 74.81% 74.81%
Loan-to-deposit ratio 64.72% 64.72%
ALL to Loans 1.20% 1.20%
Cost of Funds 4.01% 4.16%
Interest on money market and
interest checking 2.57% 2.38%
Interest on Savings 0.46% 0.39%
Interest on time deposits 4.89% 4.31%
Interest on borrowings 1.42% 3.00%
Earning Asset Yield 5.11% 5.49%
Yield on loans 8.54% 8.75%
Yield on securities 4.71% 4.48%
Yield on Fed Funds 4.51% 4.93%
Net Interest Margin 3.84% 4.11%
Efficiency Ratio 320.62% 281.13%
Non-interest expense to Average
Assets(Annualized) 11.55% 10.90%
Loss Per Share $ (0.52) $ (0.24)