8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 4, 2005

Nara Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Delaware	000-50245	95-4170121
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

3701 Wilshire Boulevard, Suite 220, Los Angeles, CA	90010
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (213) 639-1700

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02  Results of Operations and Financial Condition.
	Item 8.01 Other Events.
	Item 9.01 Financial Statements and Exhibits.
SIGNATURES
EXHIBIT 99.1

Item 2.02  Results of Operations and Financial Condition.

     On August 4, 2005, Nara Bancorp, Inc. issued a press release announcing results for the quarter ended June 30, 2005. A copy of the press release is attached as Exhibit 99.1 to this current report on Form 8-K and is incorporated by reference herein.

Item 8.01  Other Events.

Memorandum of Understanding.

     On July 29, 2005, Nara Bank, a wholly-owned subsidiary of Nara Bancorp, Inc., entered into a Memorandum of Understanding (“MOU”) with the Federal Reserve Bank of San Francisco (“Reserve Bank”) and the California Department of Financial Institutions (“Department”). Under the terms of the MOU, the Bank cannot declare dividends, without the prior written approval of the Reserve Bank and the Department. Other material provisions of the MOU require the Company and the Bank to: (i) employ an independent consultant acceptable to the Reserve Bank and the Department to conduct a review of the composition, structure and effectiveness of Nara Bank’s current directors and executive officers, (ii) prepare and submit a written plan to the Reserve Bank and the Department to strengthen Bank’s Board of Directors’ oversight of management and operations of the Bank, (iii) prepare and submit to the Reserve Bank and the Department acceptable policies, procedures and programs to strengthen the Bank’s internal controls, (iv) prepare and submit to the Reserve Bank and the Department a written plan to strengthen the oversight of the Bank’s audit function, (v) take such actions necessary to comply with Section 501 of the Gramm-Leach-Bliley Act, (vi) prepare and submit to the Reserve Bank and the Department an acceptable written information security program and a comprehensive written business resumption plan, and conduct a formal test of the business resumption plan, (vii) prepare and submit a written contingency capital plan, (viii) prepare and submit to the Reserve Bank and Department financial projections for the years 2005-2007 and revise the Bank’s three-year strategic plan, (ix) prepare and submit during the term of the MOU annual financial projections for each subsequent calendar year at least one month prior to the beginning of the calendar year, (x) notify the Reserve Bank and the Department of all revisions to the budget within 5 days of approval by the Bank’s Board of Directors, (xi) notify the Reserve Bank and the Department thirty (30) days prior to the appointment of any new director or senior executive officer or changing the responsibilities of any current senior officer, (xii) permit the Bank to make any indemnification and golden parachute or severance payments, or enter into any agreements to make such payments to institution — affiliated parties only with the prior written approval of the Board of Governors of the Federal Reserve System and concurrence of the Federal Deposit Insurance Corporation, and (xiii) prepare and submit progress reports to the Reserve Bank and the Department. The MOU will remain in effect until modified or terminated by the Reserve Bank and the Department.

Additional Company Restrictions.

     The Company has agreed with the Reserve Bank and the Department to additional restrictions as well, and must take all necessary steps to ensure that the Bank complies with the MOU, and it also must report its progress to the Reserve Bank . In addition, the Company may not declare any dividends or make any payments on the outstanding trust preferred securities issued by the Company’s subsidiaries and may not receive any dividends or payments representing a reduction of capital from the Bank, without the prior written approval of the Reserve Bank. Without the consent of the Reserve Bank, the Company may not: (i) increase its borrowings, incur any debt or renew existing debt, (ii) issue any trust preferred securities, (iii) purchase any of its stock, (iv) appoint any new director or senior executive officer or change the responsibilities of any current senior executive officer, or (v) make any indemnification and golden parachute or severance payments, or enter into agreements to make such payments to institution-affiliated parties. Finally, the Company must affirmatively ensure that all regulatory reports filed, accurately reflect the Company’s condition, are filed on a timely basis and all records, and supporting work papers are maintained.

Troubled Condition Designation.

     On July 8, 2005, the Reserve Bank notified the Company and Nara Bank that it had designated the Company and Nara Bank to be in a “troubled condition” for purposes of Section 914 of the Financial Institutions Reform, Recovery and Enforcement Act of 1989. As a result of that designation neither the Company nor Nara Bank may appoint any new director or senior executive officer or change the responsibilities of any current senior executive officers without providing the Reserve Bank thirty (30) days prior written notice. The Board of Governors of the Federal Reserve System may disapprove a notice in certain circumstances. In addition, neither the Company nor Nara Bank may make indemnification and severance payments or enter into agreements with institution-affiliated parties therefor without complying with certain statutory restrictions including prior written approval of the Board of Governors of the Federal Reserve System and concurrence from the Federal Deposit Insurance Corporation.

Compliance Efforts

     The Company and the Bank are actively engaged in responding to the concerns raised in the MOU.

Capital

     While the Company continues to be well-capitalized under all regulatory guidelines, before the end of 2005, it may raise additional capital through a private placement transaction of its common stock. The common stock will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits

99.1 Press release issued by Nara Bancorp, Inc. dated August 4, 2005.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Nara Bancorp, Inc.

Date: August 4, 2005	By:	/s/ Alvin D. Kang
		Alvin D. Kang
		Chief Financial Officer

Index to Exhibits

Exhibit
No.	Description
99.1	Press release issued by Nara Bancorp, Inc. dated August 4, 2005.

EX-99.1

Exhibit 99.1

CONTACT INFORMATION:

Investors and Financial Media:
Jordan Goldstein, Financial Dynamics
415-439-4500

1:00 pm Pacific Time

NARA BANCORP ANNOUNCES EARNINGS FOR
SECOND QUARTER AND FIRST HALF 2005

28% INCREASE IN NET INCOME TO $5.6 MILLION
FOR THE SECOND QUARTER

LOS ANGELES — August 4, 2005 — Nara Bancorp, Inc. (Nasdaq: NARA), the holding company of Nara Bank (the “Bank”), today announced preliminary unaudited financial results for the second quarter of 2005. Nara Bancorp, Inc. (the “Company”) reported net income of $5.6 million or $0.23 per diluted share for the second quarter of 2005, a 28% increase compared with $4.4 million or $0.18 per diluted share in the second quarter of 2004. Net income for the six months ended June 30, 2005 increased 39% to $11.0 million or $0.45 per diluted share compared with $7.9 million or $0.32 earnings per diluted share for the six months ended June 30, 2004. Earnings per share have been restated for the two-for-one stock split declared on May 17, 2004 and paid on June 15, 2004.

The Company also announced that it had filed a current report on Form 8-K with the Securities and Exchange Commission announcing the execution on July 29, 2005 of a Memorandum of Understanding by Nara Bank as well as certain agreements by the Company with the Federal Reserve Bank of San Francisco and the California Department of Financial Institutions, including, among other provisions discussed in more detail in the Form 8-K, a restriction on the payment of dividends by the Company and Nara Bank without the approval of the banking regulators.

Ho Yang, President and Chief Executive Officer, commented, “We are very pleased to report our strong second quarter and first half results. The first half of 2005 has been very challenging culminating in a regulatory action by our banking regulators, and I am appreciative and proud of the performance of our staff during this difficult period. We did not waver from our commitment to customer service and we have maintained our focus on operations. With the addition of Alvin Kang, our new Chief Financial Officer, Jasna Penich, our new Chief Risk Officer and certain other highly qualified individuals, we believe that we have significantly strengthened our team to meet the challenges ahead of us in 2005.

Mr. Yang continued, “Despite the higher cost of attracting deposits, we were able to increase our net interest margin to 4.94% this quarter and 4.86% for the first half of 2005. Loan growth and margin expansion continue to drive the increase in net interest income”

Second Quarter Highlights:

(2005 Second Quarter vs. 2004 Second Quarter)

• 28% increase in net income to $5.6 million compared to $4.4 million

• 28% increase in diluted EPS to $0.23 compared to $0.18

• 35% increase in net interest income before loan loss provision to $19.0 million compared to $14.0 million

• 17% increase in non-interest expense to $12.5 million compared to $10.7 million

• 20.57% annualized return on equity (ROE) compared to 19.22%

• 1.38% annualized return on average assets (ROA) compared to 1.29%

• Net interest margin of 4.94% compared to 4.49%

• Efficiency ratio of 51.84% compared to 55.80%

• Gross loan portfolio of $1.39 billion compared to $1.10 billion

• Total deposits of $1.50 billion compared to $1.22 billion

• Total assets of $1.72 billion compared to $1.40 billion

Half Year Highlights:

General

• Mr. Ho Yang joined the Bank as President and Chief Executive Officer and a Director on February 4, 2005

• Mr. Alvin D. Kang joined the Bank as Chief Financial Officer on July 28, 2005

• Ms. Jasna Penich joined the Bank as Chief Risk Officer on April 7, 2005

• The Company conducted the fourth annual New York Region Scholarship Ceremony for 34 scholarship recipients in the community around its Manhattan branch

• The Bank signed lease agreements for a mini-branch in Bayside, New York, and a full-size branch in Gardena, California

• The Bank signed a lease agreement for a new loan production office in Garden Grove, California

Financial

• Declared and paid quarterly cash dividends of $0.0275 per share for the first and second quarters

• 20.58% ROE compared to 17.91% in the first half of 2004

• 1.39% ROA compared to 1.22% in the first half of 2004

Balance Sheet Items — (June 30, 2005 vs. June 30, 2004)

• 23% increase in total assets to $1.72 billion

• 27% loan growth (including loans held for sale) to $1.40 billion

• 23% increase in deposits to $1.50 billion

First Half Year Income Statement Highlights (2005 vs. 2004)

• 39% increase in net income to $11.0 million from $7.9 million

• 41% increase in diluted EPS to $0.45 from $0.32

• 33% increase in net interest income before loan loss provision to $36.3 million from $27.4 million

• 11% increase in non-interest expense to $23.2 million from $21.0 million

Net Interest Income

Net interest income before provision for loan losses for the second quarter increased by 35% to $19.0 million from $14.0 million for the same quarter last year. This increase was primarily due to an increase in the volume of average interest-earning assets of $287.6 million and an increase in the net interest margin. The net interest margin was 4.94% for the second quarter of 2005 compared to 4.49% for the same quarter last year, a 45 basis point increase. The increased net interest margin reflects the positive impact of a higher loan portfolio yield which was partially offset by the increased interest cost on money market accounts and time deposits resulting from higher market interest rates.

The average cost of deposits, including non-interest bearing deposits, during the second quarter was 2.06%, compared to 1.19% for the same quarter last year. The average cost of interest-bearing deposits for the second quarter of 2005 was 2.78%, compared with 1.67% for the same quarter last year. The 111 basis point increase in the average cost of interest-bearing deposits reflects the increase in money market and time deposits rates during the past 12 months.

Non-interest Expense

Non-interest expense for the second quarter of 2005 was $12.5 million compared to $10.7 million for the same quarter last year, an increase of $1.8 million or 17%. Salaries and employee benefits were $6.2 million for the second quarter of 2005, representing an increase of $484 thousand or 9%, primarily due to an increase in accrued bonuses. Occupancy expense was $1.7 million for the second quarter of 2005, representing an increase of $181 thousand or 12% from the same quarter last year. This increase was primarily due to the opening of a full branch, the opening of a loan production office and space expansion in existing offices in second half of 2004 and first quarter of 2005. Professional fees were $1.2 million for the second quarter of 2005, representing an increase of $796 thousand or 205% from the same quarter last year. This increase was primarily due to legal and accounting expenses incurred related to the Restatement previously disclosed in our 2004 Annual Report on Form 10-K.

Income Taxes

The effective tax rate for the second quarter was 41.67% compared to 38.72%. The increase was primarily due to lower non-taxable (municipal bond) income and lower state income taxes in 2004.

Balance Sheet

At June 30, 2005, total assets were $1.72 billion, an increase of $209.4 million or 14% from $1.51 billion at December 31, 2004. The growth in assets was primarily attributable to the growth in the loan portfolio. Gross loans at June 30, 2005 were $1.39 billion, an increase of $165.5 million or 14% from $1.22 billion at December 31, 2004. Real estate loans increased by $124.4 million or 17% to $842.1 million at June 30, 2005 from $717.7 million at December 31, 2004. Commercial loans, including SBA loans, increased by $39.3 million or 9% to $481.2 million at June 30, 2005 from $441.9 million at December 31, 2004.

Average interest-earning assets for the second quarter were $1.54 billion, an increase of $287.6 million or 23% from the second quarter of 2004. The growth in average interest-earning assets was driven by a 25% increase in total average loans. The yield on average interest-earning assets for the quarter was 7.15%, a 132 basis point increase from 5.83% for the same period last year. The yield on average loans for the quarter was 7.55%, a 138 basis point increase from 6.17% for the same period last year. The increase in the yield on average interest-earning assets was attributable to increases in market interest rates that resulted in upward repricing of our variable rate loans, which are substantially indexed to the prime rate.

Total deposits at June 30, 2005 were $1.50 billion, an increase of $240.5 million, or 19% from $1.26 billion at December 31, 2004. The growth in deposits was primarily in time deposits, which increased by $277.2 or 57% to $762.6 million at June 30, 2005, compared to $485.3 million at December 31, 2004. This increase was primarily due to a several successful time deposit promotions during 2005. The average cost of deposits, including non-interest bearing deposits, for the second quarter of 2005 increased 87 basis points to 2.06% from 1.19% for the same quarter last year, reflecting the increase in market interest rates.

The Company’s borrowings from the Federal Home Loan Bank of San Francisco at June 30, 2005 were $43.0 million, a decrease of $47.0 million or 52% from $90.0 million at December 31, 2004. The decrease resulted from repayment of advances as part of the utilization of funds from the increase in deposits.

Asset Quality

Non-performing assets at June 30, 2005 were $3.9 million, or 0.23% of total assets compared to $2.9 million, or 0.19% of total assets at December 31, 2004, and $5.2 million, or 0.37% of total assets at June 30, 2004. Non-accrual loans at June 30, 2005 were $2.8 million, or 0.21% of total loans, compared to $2.7 million, or 0.22% of total loans at December 31, 2004 and $4.9 million, or 0.37% of total loans at June 30, 2004.

Net loan charge-offs were $896 thousand for the second quarter of 2005, compared with $568 thousand for the same quarter last year. The annualized net charge-off rate on average loans for the second quarter of 2005 was 0.26% compared with 0.21% for the same quarter last year.

The allowance for loan losses at June 30, 2005 was $16.8 million, compared to $14.6 million at December 31, 2004 and $14.3 million at June 30, 2004. The allowance for loan losses as

percentage of the total loans at June 30, 2005 was 1.21%, compared to 1.20% at December 31, 2004 and, 1.30% at June 30, 2004.

Capital

Stockholders’ equity at June 30, 2005 was $113.0 million, an increase of $11.7 million, or 12% from $101.3 million at December 31, 2004. The growth in equity during the quarter was primarily due to the retention of earnings. The Company continues to be well-capitalized under all regulatory guidelines, with a Tier I risk-based capital ratio of 9.73%, a total risk-based capital ratio of 11.08%, and a Tier I leverage ratio or 8.88%.

Second Quarter Earnings Teleconference and Webcast

Nara Bancorp will webcast a management presentation to review these results on Thursday, August 4, 2005, at 2:00 p.m. Pacific time. The webcast will be available through a link on the Investor Relations page of the Company’s website at www.narabank.com and may also be accessed through Thompson Street Events, www.fulldisclosure.com. Interested parties who are unable to listen to the management presentation live may access a replay of the webcast, which will be available at both sites.

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 16 branches and 8 loan production offices in the United States and one liaison office in Seoul, Korea. Nara Bank operates full-service branches in California and New York, with loan production offices in California, Washington, Colorado, Texas, Georgia, Illinois, 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 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 Nara Bancorp’s operations, markets, products, services, and pricing. Nara Bancorp undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements. Readers should carefully review the risk factors and the information that could materially affect Nara Bancorp’s financial results, 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.

CONTACT INFORMATION:

Ho Yang, Chief Executive Officer
213-639-1700

Alvin D. Kang, Chief Financial Officer
213-639-1700

Jordan Goldstein
Financial Dynamics
415-439-4520

Nara Bancorp, Inc.

Consolidated Statement of Financial Condition

Unaudited (Dollars in Thousands)

	6/30/2005			12/31/2004			% change			6/30/2004			% change
										(Restated)
Assets
Cash and due from banks	$	32,672		$	27,712			18	%	$	34,237			-5	%
Term federal funds sold		12,000			12,000			0	%		10,000			20	%
Federal funds sold		77,400			47,500			63	%		64,600			20	%
Securities available for sale, at fair value		131,246			133,386			-2	%		124,773			5	%
Securities held to maturity, at amortized cost (fair value: June 30, 2005 — $2,052; December 31, 2004 — $2,088)		2,001			2,001			0	%		2,001			0	%
Federal Home Loan Bank and Federal Reserve Bank stocks		8,129			6,605			23	%		6,206			31	%
Loans held for sale, at the lower of cost or market		11,631			4,730			146	%		6,700			74	%
Loans receivable		1,387,280			1,221,735			14	%		1,098,667			26	%
Allowance for loan losses		(16,769	)		(14,627	)		15	%		(14,296	)		17	%
Net loans		1,370,511			1,207,108			14	%		1,084,371			26	%
Accrued interest receivable		6,164			5,124			20	%		4,476			38	%
Premises and equipment, net		6,837			6,870			0	%		7,138			-4	%
Cash surrender value of life insurance		14,433			14,226			1	%		12,763			13	%
Goodwill		2,347			2,347			0	%		2,347			0	%
Intangible assets, net		3,947			4,305			-8	%		4,656			-15	%
Other assets		38,063			34,398			11	%		34,456			10	%
Total assets	$	1,717,381		$	1,508,312			14	%	$	1,398,724			23	%
Liabilities
Deposits	$	1,496,523		$	1,255,975			19	%	$	1,220,643			23	%
Borrowings from Federal Home Loan Bank		43,000			90,000			-52	%		32,000			34	%
Subordinated debentures		39,268			39,268			0	%		39,268			0	%
Accrued interest payable		4,518			3,412			32	%		3,124			45	%
Other liabilities		21,105			18,402			15	%		16,355			29	%
Total liabilities		1,604,414			1,407,057			14	%		1,311,390			22	%
Stockholders’ Equity
Common stock, $0.001 par value; authorized 40,000,000 shares at June 30, 2005 and December 31, 2004 issued and outstanding, 23,694,596 and 23,333,338 shares at June 30, 2005 and December 31, 2004, respectively	$	24		$	23			4	%	$	23			4	%
Capital surplus		47,465			44,903			6	%		43,590			9	%
Deferred compensation		—			(2	)		-100	%		(6	)		-100	%
Retained earnings		66,572			56,848			17	%		46,282			44	%
Accumulated other comprehensive income (loss), net		(1,094	)		(517	)		112	%		(2,555	)		-57	%
Total stockholders’ equity		112,967			101,255			12	%		87,334			29	%
Total liabilities and stockholders’ equity	$	1,717,381		$	1,508,312			14	%	$	1,398,724			23	%

Nara Bancorp, Inc.

Consolidated Statements of Income

Unaudited (Dollars in Thousands, Except for Per Share Data)

	Three Months Ended June 30,									Six Months Ended June 30,
INCOME STATEMENT	2005			2004			% change			2005			2004			% change
				(Restated)									(Restated)
Interest income:
Interest and fees on loans	$	25,559		$	15,930			60	%	$	47,597		$	30,810			54	%
Interest on securities		1,389			1,242			12	%		2,789			2,583			8	%
Interest on federal funds sold and other investments		345			148			133	%		584			268			118	%
Interest on interest rate swaps		203			905			-78	%		620			1,810			-66	%
Total interest income		27,496			18,225			51	%		51,590			35,471			45	%
Interest expense:
Interest on deposits		7,074			3,374			110	%		12,533			6,457			94	%
Interest on other borrowings		1,426			802			78	%		2,729			1,653			65	%
Total interest expense		8,500			4,176			104	%		15,262			8,110			88	%
Net interest income before provision for loan losses		18,996			14,049			35	%		36,328			27,361			33	%
Provision for loan losses		1,950			1,300			50	%		3,600			2,800			29	%
Net interest income after provision for loan losses		17,046			12,749			34	%		32,728			24,561			33	%
Non-interest income:
Service charges on deposit accounts		1,582			2,035			-22	%		3,159			4,062			-22	%
Net gains on sales of SBA loans		1,094			1,550			-29	%		1,842			2,391			-23	%
Net gains on sales of securities available-for-sale		127			103			23	%		143			408			-65	%
Loan referral fees		—			478			-100	%		—			478			-100	%
Net losses on interest rate swaps		(17	)		(1,026	)		98	%		(52	)		(306	)		83	%
Other than temporary impairment on securities		—			(123	)		100	%		—			(1,756	)		100	%
Net gains (losses) on sales of premises and equipment		—			3			-100	%		(6	)		2			-400	%
Other income and fees		2,243			2,084			8	%		4,122			4,010			3	%
Total non-interest income		5,029			5,104			-1	%		9,208			9,289			-1	%
Non-interest expense:
Salaries and employee benefits		6,153			5,669			9	%		11,415			11,487			-1	%
Occupancy		1,692			1,511			12	%		3,288			2,971			11	%
Furniture and equipment		497			484			3	%		1,007			903			12	%
Advertising and marketing		464			491			-5	%		854			797			7	%
Communications		182			163			12	%		368			324			14	%
Data processing		679			631			8	%		1,288			1,204			7	%
Professional fees		1,185			389			205	%		1,942			719			170	%
Office supplies and forms		110			120			-8	%		207			219			-5	%
Other		1,492			1,228			21	%		2,785			2,329			20	%
Total non-interest expense		12,454			10,686			17	%		23,154			20,953			11	%
Income before income taxes		9,621			7,167			34	%		18,782			12,897			46	%
Income taxes		4,009			2,775			44	%		7,765			4,965			56	%
Net Income	$	5,612		$	4,392			28	%	$	11,017		$	7,932			39	%
Earnings Per Share:
Basic	$	0.24		$	0.19			26	%	$	0.47		$	0.34			38	%
Diluted	$	0.23		$	0.18			28	%	$	0.45		$	0.32			41	%
Average Shares Outstanding
Basic		23,653,365			23,181,561						23,504,411			23,168,883
Diluted		24,538,181			24,461,073						24,634,849			24,447,316

Nara Bancorp, Inc.

Supplemental Data

Unaudited (Dollars in Thousands, Except for Per Share Data)

	(Annualized)						(Annualized)
	At or for the three months ended						At or for the six months ended
	June 30						June 30
	2005			2004			2005			2004
Profitability measures:
ROA		1.38	%		1.29	%		1.39	%		1.22	%
ROE		20.57	%		19.22	%		20.58	%		17.91	%
Net interest margin		4.94	%		4.49	%		4.86	%		4.49	%
Efficiency ratio		51.84	%		55.80	%		50.85	%		57.17	%
Yield on average interest-earning assets		7.15	%		5.83	%		6.91	%		5.83	%
Cost of interest-bearing liabilities		2.99	%		1.85	%		2.77	%		1.86	%
Cost of interest-bearing deposits		2.78	%		1.67	%		2.56	%		1.67	%
Cost of total deposits		2.06	%		1.19	%		1.89	%		1.18	%

	For the three months ended							For the six months ended
	June 30, 2005		June 30, 2004		% change			June 30, 2005		June 30, 2004		% change
AVERAGE BALANCES
Gross loans, includes loans held for sale	$	1,365,423	$	1,091,380		25	%	$	1,321,858	$	1,059,686		25	%
Other interest-earning assets		173,427		159,895		8	%		172,172		157,964		9	%
Net interest-earning assets		1,538,850		1,251,275		23	%		1,494,030		1,217,650		23	%
Other assets		92,068		115,231		-20	%		88,002		81,748		8	%
Total assets	$	1,630,918	$	1,366,506		19	%	$	1,582,032	$	1,299,398		22	%
Savings and interest-bearing demand deposits	$	349,801	$	338,269		3	%	$	380,056	$	320,925		18	%
Time deposits		666,544		467,943		42	%		599,242		453,830		32	%
Total interest-bearing deposits		1,016,345		806,212		26	%		979,298		774,755		26	%
Borrowings		84,585		57,333		48	%		87,467		58,343		50	%
Junior subordinated debentures		37,152		37,123		0	%		37,149		37,118		0	%
Total Interest-bearing liabilities		1,138,082		900,668		26	%		1,103,914		870,216		27	%
Non-interest-bearing demand deposits		357,148		326,150		10	%		346,509		322,610		7	%
Other Liabilities		26,568		48,309		-45	%		24,558		17,975		37	%
Total liabilities		1,521,798		1,275,127		19	%		1,474,981		1,210,801		22	%
Stockholders’ Equity		109,120		91,379		19	%		107,051		88,597		21	%
Total liabilities and stockholders’ equity	$	1,630,918	$	1,366,506		19	%	$	1,582,032	$	1,299,398		22	%

	June 30, 2005			December 31, 2004			% change			June 30, 2004			% change
LOAN PORTFOLIO ANALYSIS:
Commercial loans	$	481,226		$	441,940			9	%	$	393,252			22	%
Real estate loans		842,131			717,747			17	%		643,016			31	%
Consumer and Other Loans		67,010			64,846			3	%		64,907			3	%
Loans outstanding		1,390,367			1,224,533			14	%		1,101,175			26	%
Unamortized Deferred Loan Fees		(3,087	)		(2,798	)		10	%		(2,508	)		23	%
Loans, net of deferred loan fees		1,387,280			1,221,735			14	%		1,098,667			26	%
Allowance for loan losses		(16,769	)		(14,627	)		0	%		(14,296	)		17	%
Loan receivable, net	$	1,370,511		$	1,207,108			0	%	$	1,084,371			26	%

	For the six months ended
	June 30, 2005			June 30, 2004
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period	$	14,627		$	12,471		17	%
Provision for Loan Losses		3,600			2,800		29	%
Recoveries		383			456		-16	%
Charge Offs		(1,841	)		(1,431	)	29	%
Allowance made with business acquisition		—			—		0	%
Balance at End of Period	$	16,769		$	14,296		17	%
Net charge-off/Average gross loans (Annualized)		0.22	%		0.18	%

NON-PERFORMING ASSETS	June 30, 2005			December 31, 2004					June 30, 2004
Delinquent Loans 90 days or more on Non-Accrual Status	$	2,772		$	2,679				$	4,857
Delinquent Loans 90 days or more on Accrual Status		86			—					—
Total Non-Performing Loans		2,858			2,679					4,857
Other real estate owned		—			—					—
Restructured Loans		1,067			229					351
Total Non-Performing Assets	$	3,925		$	2,908				$	5,208
Non-Performing Assets/ Total Assets		0.23	%		0.19	%				0.37	%
Non-Performing Loans/Gross Loans		0.21	%		0.22	%				0.44	%
Allowance for loan losses/ Gross Loans		1.21	%		1.20	%				1.30	%
Allowance for loan losses/ Non-Performing Loans		587	%		546	%				294	%
SELECTED DEPOSIT DATA	June 30, 2005			December 31, 2004					June 30, 2004
Non-interest-bearing demand deposits	$	367,516		$	328,326		12	%	$	333,570		10	%
Savings and interest-bearing demand deposits		366,452			442,334		-17	%		426,620		-14	%
Time deposits		762,555			485,315		57	%		460,453		66	%
Total deposit balances	$	1,496,523		$	1,255,975		19	%	$	1,220,643		23	%
SELECTED EQUITY DATA	June 30, 2005			December 31, 2004					June 30, 2004
Total stockholders’ equity	$	112,967		$	101,255				$	87,334
Tier 1 risk-based capital ratio		9.73	%		9.70	%				9.42	%
Total risk-based capital ratio		11.08	%		11.39	%				11.61	%
Tier 1 leverage ratio		8.88	%		8.91	%				8.17	%
Book value per share	$	4.77		$	4.34				$	3.76

(1) As restated for 2004 two-for-one stock split