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Friday, Sep 22, 2023

Nara Beats Estimates on 3Q Profit

Nara Bancorp Inc. reported lower third-quarter earnings that still exceeded Wall Street expectations.

The Los Angeles bank holding company after Wednesday’s market close reported net income of $5 million (19 cents per share) for the quarter ended Sept. 30, down from $8.8 million or (33 cents) a year earlier. An average of analysts surveyed by Thomson First Call expected the company to earn 15 cents per share.

Net interest income fell 1.5 percent to $24.75 million and non-interest income was down 32 percent to $4.01 million.

The bank during the quarter recorded a provision for loan losses of $6.2 million, compared $1.6 million in the same period a year ago, and saw total delinquencies that were 30 days past due increase 33 percent to $43.8 million.

“Our asset quality has continued to be adversely affected by economic conditions, although it remains manageable,” said Chief Executive Min Kim in a statement, noting that an internal review identified about $66 million in loans, or 3 percent of its total portfolio, that warrant closer monitoring.

The company said it continues to expect full-year earnings to range between 62 and 67 cents per diluted share. Analysts on average expect 60 cents.

Shares of Nara closed closed down 5 cents, or less than 1 percent, to $8.89 Thursday on the Nasdaq.

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