Saehan Bancorp in Los Angeles has reported a profit in two straight quarters after losing more than $75 million in 2009 and 2010.
With its credit quality improving, Saehan said Monday that it earned $368,000 in the second quarter, compared to a loss of $3.1 million in the same period last year. Through the first half of 2011, Saehan has earned $1.2 million, versus a loss of $6 million through the first two quarters of 2010.
For the second straight quarter, Saehan did not set aside any additional funds for loan losses. Its ratio of nonperforming loans to total loans remains relatively high at 6.2%, but it is down from 8.9% at June 30, 2010.
The company also continues to shrink its balance sheet in an effort to improve its capital ratios. Since mid-2010, Saehan's assets have declined 19.3%, to $547 million at June 30, while its total risk-based capital ratio has risen nearly 200 basis points, to 17%.
