WESTMINSTER, Calif., Jan. 25, 2008 (PRIME NEWSWIRE) -- Saigon National Bank (OTCBB:SAGN) announced that the unaudited results of operations for the three and twelve months ending December 31, 2007 were a net loss of $557,000 or $0.39 per share and $1,266,000 or $0.90 per share respectively. John J. Kennedy, President and Chief Executive Officer, stated, "Increased lending activity and consequently a higher provision for loan and lease losses contributed to the increased loss from a year earlier. During the quarter the bank wrote off loans to one entity totaling $284,000 and can anticipate recovery action in the first quarter of 2008. Net loans outstanding increased $9.2 million and total deposits increased $17.7 million during the year ended December 31, 2007." In 2007, the bank provided $467,000 to the reserve for loan losses. Operating losses were reduced 27% year over year from $1,088,000 in 2006 to $799,000 in 2007 excluding provisions for loan losses.
Total assets were $37.7 million at December 31, 2007 compared to $21.0 million at December 31, 2006 an increase of 79.5% year to year. At December 31, 2007 the loan portfolio totaled $ 22.6 million an increase of 68.7% over year end 2006 and deposits totaled $26.9 million an increase of 195% over year end 2006.
The Bank's net interest income for the three months ended December 31, 2007 was $ 299,000 and $1,077,000 for the twelve months ended December 31, 2007. Average interest-earning assets were $34.9 million and $29.9 million with average interest-bearing liabilities of $24.8 million and $19.8 million for the three months and year ended December 31, 2007, yielding a net interest margin of 3.30% and 3.6% for the three and twelve months ended December 31, 2007, respectively. General and administrative expenses were $506,000 and $1,943,000 for the three and twelve months ended December 31, 2007, respectively. The largest component of general and administrative expenses was salary and benefits expense of $234,000 and $959,000 for the three and twelve months ended December 31, 2007, 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.