LOS ANGELES--(BUSINESS WIRE)--July 23, 2009--Nara Bancorp, Inc. (the “Company”) (NASDAQ:NARA), the holding company of Nara Bank (the “Bank”) reported a net loss of $6.0 million, or ($0.27) per diluted share, for second quarter 2009, compared to net income of $1.9 million, or $0.07 per diluted share, for second quarter 2008, and net loss of $3.2 million, or ($0.16) per diluted share, for first quarter 2009.

Min Kim, President and Chief Executive Officer, said, “As expected, net charge-offs and the provision for loan losses remained elevated during the second quarter, as we continued to aggressively work through our problem loans. However, we are beginning to see some encouraging signs of stabilization in our loan portfolio. During the second quarter, inflows into early-stage delinquencies slowed and the total dollar amount of loans on our ‘watch list’ declined for the first time in more than a year. The credit costs we incurred in the second quarter are primarily related to lending relationships that we had previously identified as problem loans. The continuation of these stabilizing trends, in addition to our strong levels of capital and allowance for loan losses, positions us well to effectively manage through the economic downturn.

“We were also pleased with our continued success in deposit gathering. During the second quarter, we increased core deposits by $328 million, which was partially driven by the opening of our new branch in Fort Lee, New Jersey. The growth in core deposits has a short-term negative impact on our net interest margin, as we do not have sufficient opportunities to immediately redeploy these funds into higher yielding assets. However, the substantial liquidity we have built provides the Bank with good opportunities to acquire assets or reduce higher cost liabilities going forward,” said Ms. Kim.

Net Interest Income and Net Interest Margin. Second quarter 2009 net interest income before provision for loan losses was $21.3 million, a decrease of 12% from second quarter 2008. The decline in net interest income was due to the decline in the net interest margin, as well as a significant shift in asset allocation from loans receivable to liquid assets and investment securities with lower yields.

Second quarter 2009 net interest margin (net interest income divided by average interest-earning assets) decreased 103 basis points to 2.94% from 3.97% for second quarter 2008. For the twelve months ended June 30, 2009, the targeted Fed funds rate declined 175 basis points, and the Bank’s interest-earning assets re-priced downward faster than its interest-bearing liabilities.

As the recession unfolded during 2008 and 2009, the Bank focused on building strong on-balance sheet liquidity. Total deposits grew 27% year over year, with a substantial portion of the growth occurring during second quarter 2009. These funds were invested into securities, federal funds and cash at the Federal Reserve, which enabled the Bank to substantially increase its liquidity position. However, the lower yield on the more liquid assets adversely affected the net interest margin. During this same twelve month period, the reduced demand for loans by borrowers, as well as the stricter underwriting, caused gross loans receivable to decline 2%. As loan demand improves, the Bank will be able to convert liquid assets to higher-yielding assets without resorting to wholesale funding sources.

The weighted average yield on the loan portfolio for second quarter 2009 decreased 99 basis points to 6.20% from 7.19% for the same period last year. The decrease was the result of the prime rate-based portion of the loan portfolio repricing downward as market interest rates continued to decline due to reductions in interest rates by the Federal Reserve throughout 2008. The prime rate decreased 175 basis points, consistent with the fed funds rate cuts. This was partially mitigated by the fixed rate loans in the portfolio. At June 30, 2009, fixed rate loans were 50% of the loan portfolio. The weighted average yield on the variable rate and fixed rate portfolios (excluding loan discount accretion) at June 30, 2009 was 4.66% and 7.61%, respectively, compared to 6.02% and 7.67% at June 30, 2008.

The weighted average yield on securities available for sale for second quarter 2009 decreased 72 basis points to 4.31% from 5.03% for the same period last year. The decrease was primarily due to variable rate agency CMO investment securities repricing downward as one month LIBOR rates declined. The variable rate agency CMO portfolio was $77.4 million at June 30, 2009, compared to $112.9 million at June 30, 2008.

The weighted average cost of deposits for second quarter 2009 decreased 55 basis points to 2.35% from 2.90% for the same period last year. The cost of time deposits decreased 92 basis points to 2.76% from 3.68% for the same period last year.

The weighted average cost of FHLB advances for second quarter 2009 remained stable at 3.73% for second quarter 2009, compared to 3.74% for second quarter 2008.

Following are the weighted average data on a spot rate basis at June 30, 2009 and 2008:

Sequentially, second quarter 2009 net interest income before provision for loan losses increased $821 thousand, or 4%, from first quarter 2009. The increase was attributable to an increase in average earning assets, offset by a decline in net interest margin. Average interest-earning assets increased $311.4 million, or 12%, during second quarter 2009. The net interest margin decreased 22 basis points to 2.94% for second quarter 2009 from 3.16% for first quarter 2009.

Non-accrual loan interest reversed was $169 thousand, $292 thousand, and $394 thousand for second quarter 2009, second quarter 2008, and first quarter 2009, respectively. Excluding this effect, the net interest margin for second quarter 2009, second quarter 2008, and first quarter 2009 was 2.96%, 4.02%, and 3.23%, respectively.

Prepayment penalty income for second quarter 2009, second quarter 2008 and first quarter 2009 was $145 thousand, $580 thousand and $147 thousand, respectively. Excluding the effects of both non-accrual loan interest income and prepayment penalty income, the net interest margin for second quarter 2009, second quarter 2008 and first quarter 2009 was 2.94%, 3.92% and 3.20%, respectively.

Non-interest Income. Second quarter 2009 non-interest income was $3.8 million, an increase of $460 thousand, or 14% compared to second quarter 2008. The increase is primarily due to recognition of an other-than-temporary impairment (“OTTI”) charge on a non-agency asset backed security of $1.7 million during second quarter 2008. Excluding this charge, non-interest income decreased $1.3 million, or 25%. This decrease was primarily due to a $633 thousand valuation difference in interest swaps. In addition, during second quarter 2009, the Bank recognized a loss on sale of OREO of $184 thousand and lower gains on sales of securities available for sale.

Net gains on sales of loans were $542 thousand for second quarter 2009, a decrease of $84 thousand from $626 thousand for second quarter 2008. Included in the results for second quarter 2009 was a net gain of $523 thousand recognized from the sale of a problem loan that had been transferred to loans held for sale during first quarter 2009 and $32 thousand in loan discounts recognized on SBA loans that were paid off. During second quarter 2008, the Company had net gains of $459 thousand on the sales of SBA loans, $71 thousand from the recognition of discount from paid-off loans, and $95 thousand from the sale of other commercial real estate loans.

There were no sales of SBA loans during second quarter 2009 compared to $12.0 million during second quarter 2008.

Net gains on sales of securities available-for-sale were $220 thousand for second quarter 2009, a decrease of 44% from $393 thousand for second quarter 2008. During second quarter 2009, a total of $32.3 million in available-for-sale MBS securities were sold, compared to $21.9 million during second quarter 2008.

Sequentially, non-interest income decreased 13% from first quarter 2009. The decrease was primarily due to lower net gains on sale of securities available-for-sale during second quarter 2009. Net gains on sales of securities available-for-sale were $220 thousand for second quarter 2009, compared to $785 thousand for first quarter 2009.

Non-interest Expense. Second quarter 2009 non-interest expense was $16.8 million, an increase of 13% from $14.8 million for the same period last year, primarily due to the increased FDIC insurance premiums. FDIC insurance premiums increased $2.2 million, or 738%, to $2.4 million for second quarter 2009, compared to $292 thousand for the same quarter of 2008. A portion of the increase is due to a one-time assessment fee of approximately $1.47 million in second quarter 2009.

Salaries and employee benefits expense decreased $905 thousand, or 12%, over the same quarter of the prior year, primarily due to decreases in bonus expense and in the number of full-time equivalent employees to 368 at June 30, 2009 from 410 at June 30, 2008.

Occupancy expense increased $337 thousand, or 16%, due to higher depreciation and amortization costs for the new branches opened in 2008 and 2009. Professional fees decreased $173 thousand, or 29%, over the same quarter of the prior year, primarily due to lower legal fees.

Sequentially, non-interest expense for second quarter 2009 increased by 7% from $15.2 million in first quarter 2009, primarily due to the one-time FDIC assessment of $1.47 million, partially offset by a decrease in credit related expenses of $502 thousand in second quarter 2009.

Income Taxes. The effective income tax benefit was 44% for second quarter 2009 compared to the effective income tax rate of 38% for second quarter 2008 and tax benefit of 48% for first quarter 2009. The effective tax benefit rates for the first and second quarters of 2009 were due to the effect of tax credits recognized in those periods.

At June 30, 2009, total assets were $3.26 billion, an increase of 15% from $2.83 billion at March 31, 2009. The increase in assets was driven by substantial growth in core deposits, which were subsequently invested in liquid assets and securities.

Gross loans receivable were $2.08 billion at June 30, 2009, a decrease from $2.09 billion at March 31, 2009. Loan growth was impacted by stricter loan underwriting criteria and decreased loan demand during the first several months this year. New loan production was $80.5 million during second quarter 2009, compared to $62.8 million during first quarter 2009 and $146.2 million during second quarter 2008. Loan pay-offs, pay downs, amortization and other changes totaled $88.4 million during second quarter 2009, compared to $73.1 million during first quarter 2009 and $99.3 million during second quarter 2008. The Bank anticipates that loan originations will continue to increase in the second half of 2009, as the economy improves.

SBA loan originations were $2.9 million during second quarter 2009 compared to $570 thousand during first quarter 2009 and $12.9 million during second quarter 2008. There were no sales of SBA loans during the first and second quarters of 2009, compared to $12.0 million of SBA loan sales during second quarter 2008.

Total deposits were $2.44 billion at June 30, 2009, an increase of 16% from $2.10 billion at March 31, 2009. During second quarter 2009, core deposits increased $328.7 million, which was partially offset by an $87.6 million decrease in brokered deposits. The growth in core deposits was the result of successful marketing to non-Korean customers and a successful deposit campaign in connection with the opening of the Fort Lee, New Jersey branch during second quarter 2009.

The Company recorded a provision for loan losses of $19.0 million in second quarter 2009, compared to $9.7 million for the same period of the prior year and $15.7 million in first quarter 2009. The increase in the provision for loan losses from first quarter 2009 was primarily due to the impact of higher net charge offs and higher loss migration factors on the allowance for loan losses.

Total watch list loans, defined as special mention and classified assets, were $170.2 million at June 30, 2009, a decline from $174.1 million at March 31, 2009. Special mention loans decreased to $53.3 million at June 30, 2009, from $68.4 million at March 31, 2009. Substandard loans increased to $112.6 million at June 30, 2009, from $98.4 million at March 31, 2009.

Total delinquent loans, 30 or more days delinquent, declined to $42.8 million at June 30, 2009 from $50.4 million at March 31, 2009. Since December 31, 2008, loans past due 30 – 59 days declined $5.6 million, loans past due 60 – 89 days increased $3.9 million, and loans over 90 days past due, including non-accrual loans, decreased $6.7 million, reflecting: 1) a decline in early stage delinquencies; and 2) the migration of previously identified delinquencies to resolution.

Non-performing loans at June 30, 2009 were $30.9 million, or 1.48% of total loans, compared to $41.3 million, or 1.98% of total loans, at March 31, 2009. Inflows to non-performing loans during second quarter 2009 included 30 loans totaling $5.9 million, of which three were large commercial real estate loans aggregating $3.5 million. Excluding the three loans mentioned above, the remaining inflows to non-performing loans averaged $88 thousand.

Non-performing assets at June 30, 2009 were $71.7 million, or 2.20% of total assets, compared to $77.3 million, or 2.74%, at March 31, 2009.

Net loan charge-offs during second quarter 2009 were $19.2 million, or 3.66% of average loans on an annualized basis, compared to $4.9 million, or 0.93% during second quarter 2008, and $8.6 million, or 1.63%, during first quarter 2009. Second quarter 2009 charge-offs included 73 loans averaging $266 thousand, of which four were large commercial real estate relationships aggregating $9.2 million and two were commercial loans aggregating $2.6 million. The remaining $7.4 million of charge-offs in second quarter 2009 primarily consisted of loans to retail businesses, averaging approximately $110 thousand per loan.

The allowance for loan losses at June 30, 2009 was $50.3 million, or 2.42% of gross loans receivable, compared to $50.5 million, or 2.42%, at March 31, 2009. The allowance for loan losses to non-performing loans was 163% at June 30, 2009, compared to 122% at March 31, 2009. Although the ending allowance at June 30, 2009 was comparable to March 31, 2009, the specific allowance for impaired loans declined due to higher net charge-offs, and the quantitative loss allowance increased to reflect higher loss migration factors due to charge-offs and loan classification downgrades. The qualitative loss allowance remained stable.

Impaired loans at June 30, 2009 were $81.7 million, a slight decline from $82.9 million at March 31, 2009. New impaired loans during the quarter included five commercial real estate loans aggregating $11.0 million and two commercial loans aggregating $2.4 million. Specific reserves for impaired loans were $13.3 million, or 16.3% of the aggregate gross loan amount at June 30, 2009, compared to $20.9 million, or 25.2%, at March 31, 2009. Excluding specific allowances for impaired loans, the allowance coverage on non-impaired loans was 1.85% at June 30, 2009, compared to 1.48% at March 31, 2009.

At June 30, 2009, the Company continued to exceed the regulatory capital requirements to be classified as a “well-capitalized institution.” The Leverage Ratio was 10.50% at June 30, 2009 compared to 11.95% at March 31, 2009. The Tier 1 Risk-based Ratio was 13.37% at June 30, 2009, compared to 14.03% at March 31, 2009. The Total Risk-based Ratio was 14.63% at June 30, 2009, compared to 15.30% at March 31, 2009.

At June 30, 2009, tangible common equity (TCE) represented 6.45% of tangible assets, compared to 7.74% at March 31, 2009. The decline in the TCE ratio is primarily attributable to the increase in assets during the quarter, most of which were liquid assets and GSE investment securities.

Commenting on the outlook for the remainder of 2009, Ms. Kim said, “We are cautiously optimistic that the asset quality problems have leveled off. If so, it would most likely result in a lower level of charge-offs and loan loss provisioning going forward. In addition, we are well positioned to experience expansion in our net interest margin driven by gradually increasing loan yields in the existing portfolio, declining deposit costs as CDs re-price lower over the next two quarters, and the anticipated conversion of our excess liquidity into higher yielding loans. We believe that the combination of lower credit costs and an expanding net interest margin creates a more favorable profit outlook going forward,” said Ms. Kim.

A conference call with simultaneous webcast to discuss the Company’s second quarter 2009 financial results will be held today, July 23, 2009 at 2:30 p.m. Pacific / 5:30 p.m. Eastern. Interested participants and investors may access the conference call by dialing 877-941-2927 (domestic) or 480-629-9725 (international), conference ID# 4116663. There will also be a live webcast of the call available at the Investor Relations section of Nara Bank’s web site at www.narabank.com.

After the live webcast, a replay will remain available in the Investor Relations section of Nara Bancorp’s web site. A replay of the call will be available at 800-406-7325 (domestic) or 303-590-3030 (international) through July 30, 2009, conference ID# 4116663.

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 22 branches and 2 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 Texas and Georgia. 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."

This press release contains forward-looking statements including statements about future operations and projected full-year financial results 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.

Nara Bancorp, Inc.
Consolidated Statements of Financial Condition
Unaudited (Dollars in Thousands)
Nara Bancorp, Inc.

Assets	6/30/2009			3/31/2009			% change		12/31/2008			% change		6/30/2008			% change

Cash and due from banks	$	239,454		$	44,705		436	%	$	30,057		697	%	$	41,963		471	%
Federal funds sold		40,000			150,000		-73	%		19,000		111	%		14,500		176	%
Securities available for sale, at fair value		745,792			430,219		73	%		406,586		83	%		291,343		156	%
Federal Home Loan Bank and Federal Reserve Bank stock		24,325			22,255		9	%		22,255		9	%		23,817		2	%
Loans held for sale, at the lower of cost or market		13,664			10,965		25	%		9,821		39	%		6,100		124	%
Loans receivable		2,080,312			2,088,228		0	%		2,098,443		-1	%		2,120,706		-2	%
Allowance for loan losses		(50,339	)		(50,504	)	0	%		(43,419	)	16	%		(27,899	)	80	%
Net loans receivable		2,029,973			2,037,724		0	%		2,055,024		-1	%		2,092,807		(0	)
Accrued interest receivable		10,187			8,276		23	%		8,168		25	%		8,334		22	%
Premises and equipment, net		11,580			11,749		-1	%		11,987		-3	%		11,683		-1	%
Bank owned life insurance		23,462			23,402		0	%		23,349		0	%		23,219		1	%
Goodwill		2,509			2,509		0	%		2,509		0	%		2,697		-7	%
Other intangible assets, net		1,330			1,474		-10	%		1,627		-18	%		1,963		-32	%
Other assets		118,533			82,259		44	%		81,671		45	%		55,158		115	%
Total assets	$	3,260,809		$	2,825,537		15	%	$	2,672,054		22	%	$	2,573,584		27	%

Liabilities

Deposits	$	2,439,795		$	2,098,312		16	%	$	1,938,603		26	%	$	1,928,580		27	%
Borrowings from Federal Home Loan Bank		350,000			350,000		0	%		350,000		0	%		350,000		0	%
Subordinated debentures		39,268			39,268		0	%		39,268		0	%		39,268		0	%
Accrued interest payable		10,921			9,273		18	%		8,549		28	%		7,943		37	%
Other liabilities		139,406			38,999		257	%		45,681		205	%		20,114		593	%
Total liabilities		2,979,390			2,535,852		17	%		2,382,101		25	%		2,345,905		27	%

Stockholders' Equity

Preferred stock, $0.001 par value; authorized 10,000,000 undesignated shares; issued and outstanding 67,000, 67,000, 67,000 and 0 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A with a liquidation preference of $67,000,000 at June 30, 2009, March 31, 2009, December 31, 2008 and June 30, 2008, respectively		67,000			67,000		0	%		67,000		0	%		-		100	%
Preferred stock discount		(4,202	)		(4,434	)	-5	%		(4,664	)	-10	%		-		100	%
Common stock, $0.001 par value; authorized, 40,000,000 shares; issued and outstanding, 26,256,960, 26,256,960, 26,246,560, and 26,197,560 shares at June 30, 2009, March 31, 2009, December 31, 2008 and June 30, 2008, respectively		26			26		0	%		26		0	%		26		0	%
Common stock warrant		4,766			4,766		0	%		4,766		0	%		-		100	%
Capital surplus		83,064			82,669		0	%		82,077		1	%		81,006		3	%
Retained earnings		130,565			137,643		-5	%		141,890		-8	%		148,677		-12	%
Accumulated other comprehensive income (loss), net		200			2,015		-90	%		(1,142	)	118	%		(2,030	)	110	%
Total stockholders' equity		281,419			289,685		-3	%		289,953		-3	%		227,679		24	%

Total liabilities and stockholders' equity	$	3,260,809		$	2,825,537		15	%	$	2,672,054		22	%	$	2,573,584		27	%


Nara Bancorp, Inc.
Consolidated Statements of Income (Loss)
Unaudited (Dollars in Thousands, Except for Per Share Data)

	Three Months Ended,													Six Months Ended,
	6/30/2009			6/30/2008			% change		3/31/2009			% change		6/30/2009			6/30/2008			% change

Interest income:
Interest and fees on loans	$	32,461		$	37,699		-14	%	$	31,672		2	%	$	64,133		$	78,063		-18	%
Interest on securities		5,710			3,571		60	%		4,320		32	%		10,030			7,239		39	%
Interest on federal funds sold and other investments		239			517		-54	%		67		257	%		306			845		-64	%
Total interest income		38,410			41,787		-8	%		36,059		7	%		74,469			86,147		-14	%

Interest expense:
Interest on deposits		13,365			13,578		-2	%		11,825		13	%		25,190			28,785		-12	%
Interest on other borrowings		3,785			4,053		-7	%		3,795		0	%		7,580			8,596		-12	%
Total interest expense		17,150			17,631		-3	%		15,620		10	%		32,770			37,381		-12	%

Net interest income before provision for loan losses		21,260			24,156		-12	%		20,439		4	%		41,699			48,766		-14	%
Provision for loan losses		19,000			9,652		97	%		15,670		21	%		34,670			14,645		137	%
Net interest (expense) income after provision for loan losses		2,260			14,504		-84	%		4,769		-53	%		7,029			34,121		-79	%

Non-interest income:
Service fees on deposit accounts		1,698			1,723		-1	%		1,769		-4	%		3,467			3,544		-2	%
Net gains on sales of loans		542			626		-13	%		450		20	%		992			1,426		-30	%
Net gains on sales of securities available-for-sale		220			393		-44	%		785		-72	%		1,005			860		17	%
Net valuation gains (losses) on interest rate swaps		(151	)		482		-131	%		(116	)	30	%		(267	)		175		-253	%
Net losses on sales of OREO		(184	)		-		100	%		(130	)	42	%		(314	)		-		100	%
Other than temporary impairment on securities		-			(1,713	)	100	%		-		0	%		-			(1,713	)	100	%
Other income and fees		1,660			1,814		-8	%		1,607		3	%		3,267			3,632		-10	%
Total non-interest income		3,785			3,325		14	%		4,365		-13	%		8,150			7,924		3	%

Non-interest expense:
Salaries and employee benefits		6,551			7,456		-12	%		6,443		2	%		12,994			15,092		-14	%
Occupancy		2,484			2,147		16	%		2,426		2	%		4,910			4,310		14	%
Furniture and equipment		736			707		4	%		695		6	%		1,431			1,416		1	%
Advertising and marketing		505			653		-23	%		457		11	%		962			1,203		-20	%
Data processing and communications		990			897		10	%		901		10	%		1,891			1,727		9	%
Professional fees		428			601		-29	%		678		-37	%		1,106			1,133		-2	%
FDIC assessment		2,446			292		738	%		750		226	%		3,196			601		432	%
Other		2,682			2,087		29	%		2,898		-7	%		5,580			3,789		47	%
Total non-interest expense		16,822			14,840		13	%		15,248		10	%		32,070			29,271		10	%
Income (loss) before income taxes		(10,777	)		2,989		-461	%		(6,114	)	76	%		(16,891	)		12,774		-232	%
Income tax provision (benefit)		(4,769	)		1,136		-520	%		(2,934	)	63	%		(7,703	)		5,148		-250	%
Net income (loss)	$	(6,008	)	$	1,853		-424	%	$	(3,180	)	89	%		(9,188	)		7,626		-220	%
Dividends and discount accretion on preferred stock	$	(1,069	)	$	-		100	%	$	(1,068	)	0	%		(2,137	)		-		100	%
Net income (loss) available to common stockholders	$	(7,077	)	$	1,853		-482	%	$	(4,248	)	67	%	$	(11,325	)	$	7,626		-249	%

Earnings (Loss) Per Common Share:
Basic	$	(0.27	)	$	0.07				$	(0.16	)			$	(0.43	)	$	0.29
Diluted	$	(0.27	)	$	0.07				$	(0.16	)			$	(0.43	)	$	0.29

Average Shares Outstanding:
Basic		26,256,960			26,195,035					26,250,258					26,253,627			26,194,353
Diluted		26,256,960			26,450,222					26,250,258					26,253,627			26,424,045


Nara Bancorp, Inc.
Supplemental Data
Unaudited (Dollars in Thousands, Except for Per Share Data)

	(Annualized) At or for the Three Months Ended,															(Annualized) At or for the Six Months Ended,
Profitability measures:	6/30/2009			6/30/2008			3/31/2009									6/30/2009			6/30/2008
ROA *		-0.80	%		0.29	%		-0.47	%								-0.64	%		0.61	%
ROE *		-8.26	%		3.18	%		-4.36	%								-6.31	%		6.62	%
Net interest margin		2.94	%		3.97	%		3.16	%								3.04	%		4.06	%
Efficiency ratio		67.17	%		54.00	%		61.47	%								64.33	%		51.63	%

* based on net income before effect of dividends and discount accretion on preferred stock

	Three Months Ended									Three Months Ended									Three Months Ended
	6/30/2009									6/30/2008									3/31/2009
				Interest			Annualized						Interest			Annualized						Interest			Annualized
	Average			Income/			Average			Average			Income/			Average			Average			Income/			Average
	Balance			Expense			Yield/Cost			Balance			Expense			Yield/Cost			Balance			Expense			Yield/Cost
	(Dollars in thousands)									(Dollars in thousands)									(Dollars in thousands)
INTEREST EARNING ASSETS:

Gross loans, includes loans held for sale	$	2,092,809		$	32,461			6.20	%	$	2,096,825		$	37,699			7.19	%	$	2,107,685		$	31,672		6.01	%
Securities available for sale		530,322			5,710			4.31	%		283,782			3,571			5.03	%		423,907			4,320		4.08	%
FRB and FHLB stock and other investments		266,179			212			0.32	%		25,311			371			5.86	%		50,012			66		0.53	%
Federal funds sold		5,934			27			1.82	%		27,552			146			2.12	%		2,267			1		0.18	%
Total interest earning assets	$	2,895,244		$	38,410			5.31	%	$	2,433,470		$	41,787			6.87	%	$	2,583,871		$	36,059		5.58	%

INTEREST BEARING LIABILITIES:
Deposits:
Demand, interest-bearing	$	416,561		$	2,417			2.32	%	$	263,094		$	1,819			2.77	%	$	342,843		$	2,265		2.64	%
Savings		117,948			1,008			3.42	%		143,161			1,340			3.74	%		111,233			1,008		3.62	%
Time deposits:
$100,000 or more		679,064			4,109			2.42	%		769,301			7,046			3.66	%		579,333			3,544		2.45	%
Other		763,999			5,831			3.05	%		362,194			3,373			3.73	%		637,226			5,008		3.14	%
Total time deposits		1,443,063			9,940			2.76	%		1,131,495			10,419			3.68	%		1,216,559			8,552		2.81	%
Total interest bearing deposits		1,977,572			13,365			2.70	%		1,537,750			13,578			3.53	%		1,670,635			11,825		2.83	%
FHLB advances		350,000			3,263			3.73	%		365,379			3,413			3.74	%		368,584			3,237		3.51	%
Other borrowings		37,764			522			5.53	%		38,214			640			6.70	%		38,232			558		5.84	%
Total interest bearing liabilities		2,365,336		$	17,150			2.90	%		1,941,343		$	17,631			3.63	%		2,077,451		$	15,620		3.01	%
Non-interest bearing demand deposits		297,089									337,229									289,637
Total funding liabilities / cost of funds	$	2,662,425						2.58	%	$	2,278,572						3.10	%	$	2,367,088					2.64	%
Net interest income / net interest spread				$	21,260			2.41	%				$	24,156			3.24	%				$	20,439		2.57	%
Net interest margin								2.94	%								3.97	%							3.16	%
Net interest margin, excluding effect of
non-accrual loan income(expense)								2.96	%								4.02	%							3.23	%
Net interest margin, excluding effect of
non-accrual loan income(expense) and prepayment fee income								2.94	%								3.92	%							3.20	%

Non-accrual loan income (reversed) recognized				$	(169	)							$	(292	)							$	(394	)
Prepayment fee income received					145									580									147
Net				$	(24	)							$	288								$	(247	)

Cost of deposits:
Non-interest bearing demand deposits	$	297,089		$	-					$	337,229		$	-					$	289,637		$	-
Interest bearing deposits		1,977,572			13,365			2.70	%		1,537,750			13,578			3.53	%		1,670,635			11,825		2.83	%
Total deposits	$	2,274,661		$	13,365			2.35	%	$	1,874,979		$	13,578			2.90	%	$	1,960,272		$	11,825		2.41	%

	Six Months Ended									Six Months Ended
	6/30/2009									6/30/2008
				Interest			Annualized						Interest			Annualized
	Average			Income/			Average			Average			Income/			Average
	Balance			Expense			Yield/Cost			Balance			Expense			Yield/Cost
	(Dollars in thousands)									(Dollars in thousands)
INTEREST EARNING ASSETS:

Gross loans, includes loans held for sale	$	2,100,206		$	64,133			6.11	%	$	2,076,180		$	78,063			7.52	%
Securities available for sale		477,424			10,030			4.20	%		288,033			7,239			5.03	%
FRB and FHLB stock and other investments		158,692			278			0.35	%		24,126			686			5.69	%
Federal funds sold		4,110			28			1.36	%		14,529			159			2.19	%
Total interest earning assets	$	2,740,432		$	74,469			5.43	%	$	2,402,868		$	86,147			7.17	%

INTEREST BEARING LIABILITIES:
Deposits:
Demand, interest-bearing	$	379,905		$	4,681			2.46	%	$	254,607		$	3,730			2.93	%
Savings		114,609			2,016			3.52	%		139,878			2,648			3.79	%
Time deposits:
$100,000 or more		629,474			7,654			2.43	%		776,227			15,948			4.11	%
Other		700,963			10,839			3.09	%		314,677			6,459			4.11	%
Total time deposits		1,330,437			18,493			2.78	%		1,090,904			22,407			4.11	%
Total interest bearing deposits		1,824,951			25,190			2.76	%		1,485,389			28,785			3.88	%
FHLB advances		359,252			6,499			3.62	%		383,264			7,195			3.75	%
Other borrowings		37,985			1,081			5.69	%		37,917			1,401			7.39	%
Total interest bearing liabilities		2,222,188		$	32,770			2.95	%		1,906,570		$	37,381			3.92	%
Non-interest bearing demand deposits		293,384									337,636
Total funding liabilities / cost of funds	$	2,515,572						2.61	%	$	2,244,206						3.33	%
Net interest income / net interest spread				$	41,699			2.49	%				$	48,766			3.25	%
Net interest margin								3.04	%								4.06	%
Net interest margin, excluding effect of
non-accrual loan income(expense)								3.08	%								4.07	%
Net interest margin, excluding effect of
non-accrual loan income(expense) and prepayment fee income								3.06	%								4.00	%

Non-accrual loan income (reversed) recognized				$	(560	)							$	(133	)
Prepayment fee income received					292									801
Net				$	(268	)							$	668

Cost of deposits:
Non-interest bearing demand deposits	$	293,384		$	-					$	337,636		$	-
Interest bearing deposits		1,824,951			25,190			2.76	%		1,485,389			28,785			3.88	%
Total deposits	$	2,118,335		$	25,190			2.38	%	$	1,823,025		$	28,785			3.16	%

	For the Three Months Ended															For the Six Months Ended
	6/30/2009			6/30/2008			% change			3/31/2009			% change			6/30/2009			6/30/2008			% change
AVERAGE BALANCES
Gross loans, includes loans held for sale	$	2,092,809		$	2,096,825			0	%	$	2,107,685			-1	%		2,100,206			2,076,180			1	%
Investments		802,435			336,645			138	%		476,186			69	%		640,226			326,688			96	%
Interest-earning assets		2,895,244			2,433,470			19	%		2,583,871			12	%		2,740,432			2,402,868			14	%
Total assets		3,007,256			2,545,239			18	%		2,697,622			11	%		2,852,961			2,512,140			14	%

Interest-bearing deposits		1,977,572			1,537,750			29	%		1,670,635			18	%		1,824,951			1,485,389			23	%
Interest-bearing liabilities		2,365,336			1,941,343			22	%		2,077,451			14	%		2,222,188			1,906,570			17	%
Non-interest-bearing demand deposits		297,089			337,229			-12	%		289,637			3	%		293,384			337,636			-13	%
Stockholders' Equity		290,959			232,865			25	%		291,908			0	%		291,094			230,232			26	%
Net interest earning assets		529,908			492,127			8	%		506,420			5	%		518,244			496,298			4	%

LOAN PORTFOLIO COMPOSITION:	6/30/2009			3/31/2009			% change			12/31/2008			% change			6/30/2008			% change
Commercial loans	$	556,793		$	573,615			-3	%	$	598,556			-7	%	$	615,977			-10	%
Real estate loans		1,502,048			1,491,480			1	%		1,472,872			2	%		1,474,204			2	%
Consumer and other loans		23,069			24,633			-6	%		28,520			-19	%		32,140			-28	%
Loans outstanding		2,081,910			2,089,728			0	%		2,099,948			-1	%		2,122,321			-2	%
Unamortized deferred loan fees - net of costs		(1,598	)		(1,500	)		7	%		(1,505	)		6	%		(1,615	)		-1	%
Loans, net of deferred loan fees and costs		2,080,312			2,088,228			0	%		2,098,443			-1	%		2,120,706			-2	%
Allowance for loan losses		(50,339	)		(50,504	)		0	%		(43,419	)		16	%		(27,899	)		80	%
Loan receivable, net	$	2,029,973		$	2,037,724			0	%	$	2,055,024			-1	%	$	2,092,807			-3	%

DEPOSIT COMPOSITION	6/30/2009			3/31/2009			% Change			12/31/2008			% Change			6/30/2008			% Change
Non-interest-bearing demand deposits	$	318,874		$	297,540			7	%	$	303,656			5	%	$	351,188			-9	%
Money market and other		517,020			364,297			42	%		306,478			69	%		266,988			94	%
Saving deposits		129,120			113,614			14	%		113,186			14	%		146,362			-12	%
Time deposits of $100,000 or more		763,088			590,342			29	%		626,850			22	%		800,255			-5	%
Other time deposits		711,693			732,519			-3	%		588,433			21	%		363,787			96	%
Total deposit balances	$	2,439,795		$	2,098,312			16	%	$	1,938,603			26	%	$	1,928,580			27	%

DEPOSIT COMPOSITION (%)	6/30/2009			3/31/2009			12/31/2008			6/30/2008
Non-interest-bearing demand deposits		13.1	%		14.2	%		15.7	%		18.2	%
Money market and other		21.2	%		17.4	%		15.8	%		13.8	%
Saving deposits		5.3	%		5.4	%		5.8	%		7.6	%
Time deposits of $100,000 or more		31.3	%		28.1	%		32.3	%		41.5	%
Other time deposits		29.1	%		34.9	%		30.4	%		18.9	%
Total deposit balances		100.0	%		100.0	%		100.0	%		100.0	%

CAPITAL RATIOS	6/30/2009			3/31/2009			12/31/2008			6/30/2008
Total stockholders' equity	$	281,419		$	289,685		$	289,953		$	227,679
Tier 1 risk-based capital ratio		13.37	%		14.03	%		14.32	%		11.53	%
Total risk-based capital ratio		14.63	%		15.30	%		15.58	%		12.76	%
Tier 1 leverage ratio		10.50	%		11.95	%		12.61	%		10.35	%
Book value per share *	$	8.14		$	8.47		$	8.49		$	8.69
Tangible common equity per share *	$	8.00		$	8.32		$	8.33		$	8.51
Tangible common equity to tangible assets *		6.45	%		7.74	%		8.20	%		8.68	%

* excludes TARP preferred stock and stock warrants of $67.0 million

	For the Three Months Ended															For the Six Months Ended
ALLOWANCE FOR LOAN LOSSES:	6/30/2009			3/31/2009			% Change			6/30/2008			% Change			6/30/2009			6/30/2008			% Change
Balance at Beginning of Period	$	50,504		$	43,419			16	%	$	23,116			118	%	$	43,419		$	20,035			117	%
Provision for Loan Losses		19,000			15,670			21	%		9,652			97	%		34,670			14,645			137	%
Recoveries		251			83			202	%		58			333	%		334			105			218	%
Charge Offs		(19,416	)		(8,668	)		124	%		(4,927	)		294	%		(28,084	)		(6,886	)		308	%
Balance at End of Period	$	50,339		$	50,504			0	%	$	27,899			80	%	$	50,339		$	27,899			80	%
Net charge-off/Average gross loans (annualized)		3.66	%		1.63	%					0.93	%					2.64	%		0.65	%

NON-PERFORMING ASSETS	6/30/2009			3/31/2009			12/31/2008			6/30/2008
Delinquent Loans 90 days or more on Non-Accrual Status	$	30,850		$	41,330		$	37,580		$	25,222
Delinquent Loans 90 days or more on Accrual Status		-			7			-			-
Total Non-Performing Loans		30,850			41,337			37,580			25,222
Other real estate owned		3,805			4,822			2,969			-
Restructured Loans		37,026			31,131			3,256			1,414
Total Non-Performing Assets	$	71,681		$	77,290		$	43,805		$	26,636
Non-Performing Assets/ Total Assets		2.20	%		2.74	%		1.64	%		1.03	%
Non-Performing Loans/ Gross Loans		1.48	%		1.98	%		1.79	%		1.19	%
Allowance for loan losses/ Gross Loans		2.42	%		2.42	%		2.07	%		1.32	%
Allowance for loan losses/ Non-Performing Loans		163	%		122	%		116	%		111	%

	For the Three Months Ended,															For the Six Months Ended,
PTPP COVERAGE	6/30/2009			3/31/2009			12/31/2008			9/30/2008			6/30/2008			6/30/2009			6/30/2008
Pre Tax - Pre Provision income	$	8,223		$	9,556		$	11,013		$	14,773		$	12,641		$	17,779		$	27,419
Provision for loan losses		(19,000	)		(15,670	)		(28,000	)		(6,180	)		(9,652	)		(34,670	)		(14,645	)
Income (loss) before income taxes	$	(10,777	)	$	(6,114	)	$	(16,987	)	$	8,593		$	2,989		$	(16,891	)	$	12,774


	For the Three Months Ended,															For the Six Months Ended,
NET CHARGED OFF LOANS BY TYPE	6/30/2009			3/31/2009			12/31/2008			9/30/2008			6/30/2008			6/30/2009			6/30/2008
Real Estate Loans	$	12,410		$	2,121		$	2,613		$	2,128		$	2,441		$	14,531		$	2,688
Commercial Loans		6,608			5,204			9,685			4,053			2,331			11,812			3,862
Consumer Loans		147			1,260			89			92			97			1,407			231
Total Net Charge-offs	$	19,165		$	8,585		$	12,387		$	6,273		$	4,869		$	27,750		$	6,781


DELINQUENT LOANS BY DAYS PAST DUE	6/30/2009			3/31/2009			12/31/2008			9/30/2008			6/30/2008
30 - 59 Days	$	5,364		$	8,272		$	10,967		$	10,486		$	4,494
60 - 89 Days		6,593			838			2,668			2,792			3,264
90 days or more and accruing		-			7			-			-			-
Non-accrual		30,850			41,330			37,580			30,501			25,222
Total Delinquent Loans	$	42,807		$	50,447		$	51,215		$	43,779		$	32,980


DELINQUENT LOANS BY TYPE*	6/30/2009			3/31/2009			12/31/2008			9/30/2008			6/30/2008
Real Estate Loans	$	28,242		$	31,823		$	28,409		$	18,681		$	19,247
Commercial Loans		14,041			18,076			21,030			24,151			13,085
Consumer Loans		524			548			1,776			947			648
Total Delinquent Loans	$	42,807		$	50,447		$	51,215		$	43,779		$	32,980
* Delinquent over 30 days, including non-accrual loans


NON-ACCRUAL LOANS BY TYPE	6/30/2009			3/31/2009			12/31/2008			9/30/2008			6/30/2008
Real Estate Loans	$	20,515		$	26,153		$	21,759		$	11,410		$	15,451
Commercial Loans		10,072			14,876			14,379			18,885			9,467
Consumer Loans		263			301			1,442			206			304
Total Non-accrual Loans	$	30,850		$	41,330		$	37,580		$	30,501		$	25,222


WATCH LIST LOANS	6/30/2009			3/31/2009			12/31/2008			9/30/2008			6/30/2008
Special Mention	$	53,277		$	68,388		$	71,169		$	38,461		$	12,835
Substandard		112,641			98,412			55,622			44,580			41,991
Doubtful		4,237			7,288			9,883			7,306			3,246
Loss		-			8			-			-			11
Total Watch List Loans	$	170,155		$	174,096		$	136,674		$	90,347		$	58,083

CONTACT:
Investors and Financial Media:
Nara Bancorp, Inc.
Tony Rossi, Financial Relations Board
213-486-6545

	June 30,
	2009		2008
Weighted average loan portfolio yield (excluding discounts)	6.13	%	6.87	%
Weighted average securities available-for-sale portfolio yield	4.60	%	4.88	%
Weighted average cost of deposits	2.27	%	2.75	%
Weighted average cost of total interest-bearing deposits	2.62	%	3.36	%
Weighted average cost of FHLB advances	3.75	%	3.76	%

	2009 Second Quarter			2008 Second Quarter			2009 First Quarter
	(Dollars in thousands)
Net income (loss)	$	(6,008	)	$	1,853		$	(3,180	)
Diluted earnings (loss) per share	$	(0.27	)	$	0.07		$	(0.16	)
Net interest income	$	21,260		$	24,156		$	20,439
Net interest margin		2.94	%		3.97	%		3.16	%
Non-interest income	$	3,785		$	3,325		$	4,365
Non-interest expense	$	16,822		$	14,840		$	15,248
Net loans receivable	$	2,029,973		$	2,092,807		$	2,037,724
Deposits	$	2,439,795		$	1,928,580		$	2,098,312
Non-performing loans	$	30,850		$	25,222		$	41,337
ALLL to total loans		2.42	%		1.32	%		2.42	%
ALLL to non-performing loans		163	%		111	%		122	%
Provision for loan losses	$	19,000		$	9,652		$	15,670
Efficiency ratio		67.17	%		54.00	%		61.47	%