Nara Reports Drop in Earnings

0

Nara Bancorp Inc. reported Tuesday that the faltering economy cut into first quarter lending and income, adding to the list of local banks that have performed poorly this earnings season.


Nara reported net income of $7 million (27 cents per share) for the quarter ended March 31, a 4 percent decrease from $7.3 million (28 cents) for the same period a year earlier.


Net interest income for the parent of Nara Bank decreased 4 percent to $44.3 million, while deposits increased 6 percent to $1.85 billion.


“The slowing economy is having a broader effect on loan demand, which we saw most notably in our SBA business line during the quarter,” said Min Kim, Nara’s chief executive, in a statement.


Nara based in Mid-Wilshire, serves the area’s large Korean-American population. It is among a number of L.A. banks that released poor earnings over the past month, including City National and East West.


Nara Bancorp revised its outlook for 2008, projecting earnings per share between $1 and $1.05, down from the $1.11 to $1.15 the company announced back in January.


Shares in Nara closed down 1.9 percent to $11.74 Tuesday. However, shares rebounded Wednesday morning — gaining 8 percent to $12.68.

No posts to display