WESTMINSTER, Calif., Oct. 31, 2008 (GLOBE NEWSWIRE) -- Saigon National Bank (OTCBB:SAGN) announced a net loss from operations of $329,352 or $0.23 per share for the three months ending September 30, 2008 and a net loss of $1,048,990 or $0.74 per share for the nine months ending September 30, 2008 . The most significant component of the loss from operations was the provision in the allowance for loan and lease losses of $205,940 due to the increase in loans outstanding. Before the provision in the allowance for loan losses the net loss from operations was $123,412 for the third quarter versus $326,193 for the quarter ending June 30, 2008.
Bank assets have increased 64% over the last twelve months while deposits have increased 104%. Total assets were $54.9 million at September 30, 2008 compared to $33.5 million at September 30, 2007. At September 30, 2008 the loan portfolio totaled $ 44.2 million an increase of 122% year over year and deposits totaled $44.9 million representing an increase of 104% since September 2007. At September 30, 2007 the loan portfolio totaled $ 19.9 million and deposits totaled $22.1 million. The Bank's shareholders' equity totaled $9.8 million as of September 30, 2008 representing a book value of $6.94 per share.
The Bank's net interest income for the three months ended September 30, 2008 was $303,552 and $874,303 for the nine months ended September 30, 2008. Average interest-earning assets were $48 million and $41 million with average interest-bearing liabilities of $37 million and $31 million for the three and nine months ended September 30, 2008, respectively, yielding a net interest margin of 2.54% and 2.90% for the three and nine months ended September 30, 2008, respectively. General and administrative expenses were $445,908 and $1,632,289 for the three and nine months ended September 30, 2008, respectively. The largest component of general and administrative expenses was salary and benefits expense of $126,228 and $735,524 for the three and nine months ended September 30, 2007, respectively. For the period from January 1, 2008 through September 30, 2008 a provision for loan losses of $334,214 was added to the allowance for loan losses bringing the allowance for loan losses to $480,000 at September 30, 2008.
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.