LOS ANGELES--(BUSINESS WIRE)--
Nara Bancorp, Inc. (NASDAQ: NARA) today announced that it has received
preliminary approval from the U.S. Department of Treasury for a $67
million investment in Nara Bancorp preferred stock and warrants to
purchase Nara Bancorp common stock, as part of the federal government's
TARP Capital Purchase Program. The investment represents 3% of the
Company's total risk-weighted assets at
September 30, 2008.
"We are pleased to receive preliminary
approval for an investment from the Capital Purchase Program,"
said Min Kim, Chief Executive Officer of Nara Bancorp. "As
described by Treasury Secretary Henry Paulson, the CPP is designed to
inject additional capital into healthy financial institutions. Although
we are already 'well capitalized'
as defined by federal banking regulations, we believe the Capital
Purchase Program represents a unique opportunity to raise additional
capital on attractive terms."
The following table summarizes the effect that the TARP investment will
have on the Company's capital ratios:
Pre-TARP Investment Post-TARP Investment
9/30/2008 9/30/2008 (pro forma)
Leverage Capital Ratio 10.42% 13.07%
Tier One Risk-Based Capital 11.84% 14.85%
Ratio
Total Risk-Based Capital Ratio 13.08% 16.08%
Completion of the proposed transaction will be subject to receipt of
final approval from the Treasury Department and certain other customary
conditions.
A summary of the TARP Capital Purchase Program, including the terms of
the preferred stock and warrant to be issued by Nara Bancorp, can be
found on the Treasury's website at www.ustreas.gov/initiatives/eesa.
About Nara Bancorp, Inc.
Nara Bancorp, Inc. is the parent company of Nara Bank, which was founded
in 1989. Nara Bank is a full-service community bank headquartered in Los
Angeles, with 21 branches and 6 loan production offices in the United
States. Nara Bank operates full-service branches in California, New York
and New Jersey, with loan production offices in California, Nevada,
Texas, Georgia, New Jersey, and Virginia. Nara Bank was founded
specifically to serve the needs of Korean-Americans, one of the
fastest-growing Asian ethnic communities over the past decade.
Presently, Nara Bank serves a diverse group of customers mirroring its
communities. Nara Bank specializes in core business banking products for
small and medium-sized companies, with emphasis in commercial real
estate and business lending, SBA lending and international trade
financing. Nara Bank is a member of the FDIC and is an Equal Opportunity
Lender. For more information on Nara Bank, visit our website at www.narabank.com.
Nara Bancorp, Inc. stock is listed on NASDAQ under the symbol "NARA."
Forward-Looking Statements
This press release contains forward-looking statements including
statements about future operations that are subject to risks and
uncertainties that could cause actual results to differ materially from
those expressed or implied by such forward looking statements,
including, but not limited to economic, competitive, governmental and
technological factors affecting the Company's
operations, markets, products, services, and pricing. Readers should
carefully review the risk factors and the information that could
materially affect the Company's financial
results and business, described in documents the Company files from time
to time with the Securities and Exchange Commission, including its
quarterly reports on Form 10-Q and Annual Reports on Form 10-K, and
particularly the discussion of business considerations and certain
factors that may affect results of operations and stock price set forth
therein. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. The Company undertakes no obligation to revise or
publicly release the results of any revision to these forward-looking
statements.
Source: Nara Bancorp, Inc.
Contact: Financial Relations Board
Investors and Financial Media:
Tony Rossi, 213-486-6545