Hanmi Financial Corporation Reports Second Quarter 2010 Financial Results

LOS ANGELES, July 27, 2010 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (Nasdaq:HAFC), the holding company for Hanmi Bank, today reported a second quarter net loss of $29.3 million, or $0.57 per share, primarily driven by a $37.5 million credit loss provision, compared to a net loss of $9.5 million, or $0.21 per share, in the second quarter a year ago when it took a $23.9 million credit loss provision. A decline in the provision for credit losses and strong liquidity were two positive trends in the second quarter.

"We are pleased with the progress we made in the second quarter of 2010 reducing the size of our problem assets while maintaining strong liquidity," stated Jay S. Yoo, President and Chief Executive Officer. "We believe these efforts combined with our recently concluded successful capital raise will help stabilize Hanmi Bank's capital position and allow us to successfully compete in our market areas over the long term," continued Mr. Yoo.

Second Quarter 2010 Highlights

  --  Continuing successful deleveraging of the balance sheet resulted in
      assets declining 25% to $2.91 billion, with gross loans down 21%, and
      securities down 11% compared to a year ago.
  --  Net interest margin (NIM) expanded 107 basis points to 3.56% in the
      second quarter and 113 basis points to 3.62% for the first six months of
      2010 compared to 2.49% for the second quarter and the first half of
      2009. The NIM expansion reflects a reduction in the cost of funds of 11
      basis point drop in the quarter and 143 basis points in the first six
      months of 2010, respectively, compared to the same periods of 2009.
  --  The allowance for loan losses decreased to $176.7 million, or 7.05% of
      total gross loans, at June 30, 2010, compared to $177.8 million, or
      6.63% of total gross loans, at March 31, 2010. The allowance for loan
      losses increased 68% to $176.7 million, or 7.05% of total gross loans
      compared to $105.3 million, or 3.33% of total gross loans a year ago.
  --  Nonperforming loans declined $20.1 million to $242.1 million, or 9.67%
      of total gross loans from the first quarter's $262.2 million. Total
      loans delinquent on accrual status for 30 to 89 days fell to $21.7
      million, at June 30, 2010, compared to $68.6 million, at March 31, 2010.
  --  Federal Home Loan Bank advances and brokered deposits were down to
      $153.8 million and $0, respectively, at June 30, 2010 as compared with
      $211 million and $475 million, a year ago.
  --  Non--time deposits increased by 7% from $1.06 billion to $1.14 billion,
      accounting for 44 % of total deposits, compared to 32 % of total
      deposits a year ago, reflecting the continued strong support of the
      local community.

Successful Capital Raise

As previously announced, following the end of the second quarter, Hanmi successfully raised $120 million of confirmed funding through a registered rights and best efforts offering of common stock, and most of the net proceeds from the offerings will be down-streamed to the Bank. A final notice will be issued to the market shortly to verify the closing of the offering for the full $120 million amount. "We are very pleased with the success of these offerings and grateful for the support shown by our stockholders. We are also pleased with the confidence shown by the investment community in Hanmi's future," Mr. Yoo stated.

"Our long-term shareholders subscribed to the recently completed rights offering for a total of $47.3 million, and we raised another $72.7 million in the registered direct offering immediately thereafter. We will contribute at least $100 million of the net proceeds to Hanmi Bank by July 31, 2010 to satisfy a key requirement of its regulatory order with the California DFI," Mr. Yoo added.

In addition, as previously announced, on May 25, 2010 Hanmi entered into a securities purchase agreement with Woori Finance Holdings. Under this agreement, Woori has agreed to purchase a minimum of $210 million of Hanmi common stock at a purchase price of $1.20 per share. Woori also has the option to purchase up to an additional $30 million of Hanmi common stock at the same $1.20 purchase price per share. If consummated, Hanmi intends to contribute a significant portion of the net proceeds from the sale to Woori as additional capital to support Hanmi Bank. The Company expects to use the remaining net proceeds for general working capital purposes. The securities purchase agreement with Woori is contingent upon the satisfaction of certain closing including, but not limited to regulatory approval.

Asset Quality

The Bank continued to focus its efforts to reduce risk in its asset portfolio, especially through note sales. During the second quarter of 2010, the Bank sold at competitive discount rates a total of $82.1 million in problem assets.

At June 30, 2010, the allowance for loan losses decreased slightly to $176.7 million from $177.8 million and $105.3 million at March 31, 2010 and June 30, 2009, respectively. However, the allowance to gross loans ratio increased to 7.05% from 6.63% and 3.33% during March 31, 2010 and June 30, 2009, respectively. Allowance to non-performing loans ratio increased to 72.96% from 67.81% and 62.92% during March 31, 2010 and June 30, 2009, respectively. Second-quarter charge-offs, net of recoveries, were $38.9 million compared to $26.4 million in the prior quarter and $23.6 million in the second quarter of 2009.

Non-performing loans (NPLs) of $242.1 million declined by $20.1 million, or 7.7% at June 30, 2010, compared to $262.2 million, at March 31, 2010, and increased by $74.8 million, or 44.7% compared to $167.3 million at June 30, 2009. Of the total non-performing loans of $242.1 million, $57.8 million, or 23.9%, were current on payments. Management believes these non-performing loans are adequately supported by underlying collateral. 32.3% of NPLs required an impairment reserve totaling $22.4 million.

The following table shows non-performing loans by loan category:


  Total Non-Performing Loans
  --------------------------------------------------------------------------------

                                       % of               % of               % of
                                       Total              Total              Total
   ('000)                  6/30/2010   NPL    3/31/2010   NPL    6/30/2009   NPL
  -----------------------  ---------  ------  ---------  ------  ---------  ------

  Real Estate Loans:
                           ---------          ---------

   Commercial Property        42,877   17.7%     52,273
                                              ---------   19.9%     25,919   15.5%

   Construction                9,823
                           ---------    4.1%      6,786    2.6%     16,542    9.9%

   Land Loans                 35,806             46,388
                           ---------   14.8%  ---------   17.7%      7,235    4.3%

   Residential Property        2,836              3,241
                           ---------    1.2%  ---------    1.2%      2,209    1.3%
  Commercial & Industrial
   Loans:
                           ---------          ---------
   Owner Occupied
    Property                 113,976            115,147
                           ---------   47.1%  ---------   43.9%     72,006   43.0%

   Other C&I                  36,521             38,043
                           ---------   15.1%  ---------   14.5%     42,862   25.6%

  Consumer Loans                 293    0.1%        353    0.1%        523    0.3%
  -----------------------  ---------  ------  ---------  ------  ---------  ------

  TOTAL NPL                  242,132  100.0%    262,231  100.0%    167,296  100.0%
  -----------------------  ---------  ------  ---------  ------  ---------  ------

Other real estate owned (OREO) totaled $24.1 million at June 30, 2010, up from $22.4 million at March 31, 2010 and down from $34.0 million a year ago. "We have been aggressive in selling loans prior to foreclosure," said Yoo. Total non-performing assets were $266.2 million, or 9.13% of total assets at June 30, 2010, compared to $284.6 million, or 9.43% of total assets at March 31, 2010, and $201.3 million, or 5.20% of total assets at June 30, 2009.

Our proactive approach to the problematic credits reduced our delinquent loans on accrual status to $21.7 million, or 0.87% of gross loans, at June 30, 2010, from $68.6 million, or 2.56% of gross loans, at March 31, 2010. At June 30, 2009, the comparable numbers were $47.7 million, or 1.51% of gross loans.

The following table shows delinquent loans on accrual status by loan category:


  Past due and accruing loans (30~89 days)
  ---------------------------------------------------------------------------------

                                        % of               % of               % of
                                        Total              Total              Total
                                        30~89              30~89              30~89
   ('000)                   6/30/2010    PD    3/31/2010    PD    6/30/2009    PD
  ------------------------  ---------  ------  ---------  ------  ---------  ------

  Real Estate Loans:
                            ---------          ---------
   Commercial Property          3,020   13.9%     15,155   22.1%     10,138   21.2%
   Construction                    --    0.0%         --    0.0%         --    0.0%
   Land Loans                      --    0.0%      2,300    3.4%      5,892   12.3%
   Residential Property         1,858    8.6%        381    0.6%        125    0.3%
  Commercial & Industrial
   Loans:
                            ---------          ---------
   Owner Occupied Property      9,964   45.9%     37,348   54.4%     14,784   31.0%
   Other C&I                    6,559   30.2%     13,119   19.1%     16,267   34.1%

  Consumer Loans                  300    1.4%        337    0.5%        533    1.1%
  ------------------------  ---------  ------  ---------  ------  ---------  ------

  TOTAL Past Due
   (accruing)                  21,701  100.0%     68,640  100.0%     47,739  100.0%
  ------------------------  ---------  ------  ---------  ------  ---------  ------

Balance Sheet

Reflecting the Bank's ongoing program to deleverage its balance sheet, total assets decreased to $2.92 billion, at June 30, 2010, a 3% decline from $3.02 billion at March 30, 2010, and a 25% decline from $3.87 billion at June 30, 2009. Gross loans, net of deferred loan fees, were $2.50 billion as of June 30, 2010, down 7% from $2.68 billion at March 31, 2010, and down 21% from $3.16 billion at June 30, 2009. Total deposits decreased 22% year-over-year and declined 3% from the quarter ended March 31, 2010. Total deposits were $2.58 billion at June 30, 2010, compared to $2.65 billion at March 31, 2010, and $3.29 billion at June 30, 2009. Noninterest-bearing deposits increased 5% to $574.8 million at the end of the second quarter from $547.7 million a year ago.

"We were able to build our core deposits and reduce our reliance on higher-cost certificates of deposits during the second quarter of 2010" stated Brian Cho, Hanmi Bank's Chief Financial Officer. "We have been reducing our reliance on wholesale funding, reflecting a decrease in brokered deposits from a year ago. FHLB advances are down 27% from a year ago to $153.8 million. We no longer hold any brokered CDs with the maturation of $63 million of brokered CDs in the second quarter."

"Our diversified funding sources, including core deposits, which continue to increase, sale of long-term assets such as non-performing loans, and our contingent borrowing lines with the Federal Home Loan Bank and Federal Reserve Bank have provided strong liquidity for the bank," said Cho.

Results of Operations

Net interest income before provision for credit losses totaled $26.3 million, a 4% decrease from $27.3 million in the preceding quarter and a 14% increase from the $23.1 million in second quarter a year ago. The quarterly decline reflects the increase in cash and cash equivalent balances quarter-over-quarter, which have been accumulated to manage the liquidity situation in an uncertain economic environment. The year over year increase reflects the lower cost of funds associated with replacing high-cost time deposits with low-cost core deposits. For the first six months of 2010, net interest income before provision for credit losses totaled $53.6 million compared to $46.3 million in the first six moths of 2009.

The average yield on the loan portfolio was 5.30% in the second quarter of 2010, an 8 basis point decrease from the prior quarter, primarily due to higher interest income reversals on the newly added nonaccrual loans. For the first half of 2010, the interest income reversal due to the addition to NPA was $2.5 million ($1.6 million in the second quarter and $0.9 million in the first quarter), resulting in the negative impact on NIM by 17 basis points. The cost of average interest-bearing deposits in the second quarter was 1.72%, down 15 basis points from the first quarter of 2010. Hanmi's net interest margin improved 107 basis points to 3.56% up from 2.49% in the second quarter a year ago. The net interest margin in the preceding quarter was 3.69%. For the first six months of 2010 the net interest margin was 3.62% up from 2.49% in the first six months of 2009.

The provision for credit losses in the second quarter of 2010 was $37.5 million, compared to $58.0 million in the prior quarter and $23.9 million in the second quarter a year ago. For the first half of 2010, the provision for credit losses totaled $95.5 million up from $69.9 million in the first half of 2009. The increases in the provision for credit losses as compared to the year ago period are attributable to increases in net charge-offs, non-performing loans and criticized and classified loans, reflecting the deterioration of CRE market.

Total non-interest income in the second quarter of 2010 was $6.7 million compared to $7.0 million in the first quarter of 2010 and $7.6 million in the second quarter of 2009. Non interest income in the first six months of 2010 totaled $13.7 million compared to $16.1 million the first six months of 2009, due primarily to a decrease in service charges on deposit accounts, resulted from the slowed business activities of our customer in the worsening economy. For the first half of 2010, service charges on deposit accounts decreased to $7.3 million, compared to $8.8 million in the same period of 2009.

In addition, as a result of our effort to improve our cash position, we sold a substantial portion of investment securities in 2009 and recognized a significant gain on such sales activities in the first half of 2009, $1.1 million more than the current year's gain.

Total non-interest expense in the second quarter of 2010 was $24.8 million, down from $26.2 million in the first quarter of 2010 and $25.6 million in the second quarter a year ago. Year-to-date non interest expense increased by $7.0 million to $51.0 million, up 16% from $44.0 million in the first six months of 2009, primarily due to a $5.5 million increase in OREO valuation allowance and a $880,000 increase in FDIC assessment.

"Reduced levels of expenditures for OREO management and credit collections expenses were the primary drivers of lower non-interest expense in the second quarter compared to the preceding quarter," Cho noted. In the second quarter of 2010, OREO expense dropped to $1.7 million from $5.7 million in the first quarter and is more comparable to the $1.5 million in the second quarter a year ago.

Conference Call Information

Management will host a conference today at 1:30 p.m. PDT (4.30 p.m. EDT) to discuss these financial results. This call will also be broadcast live via the internet. Investment professionals and all current and prospective shareholders are invited to access the live call by dialing (617) 614-6206 at 1:00 p.m. (PDT), using access code HANMI. To listen to the call online, either live or archived, visit the Investor Relations page of Hanmi Financial Corporation website at www.hanmi.com. Shortly after the call concludes, the replay will also be available at (617) 801-6888, using access code #62288548 where it will be archived until August 14, 2010.

About Hanmi Financial Corporation

Headquartered in Los Angeles, Hanmi Bank, a wholly-owned subsidiary of Hanmi Financial Corporation, provides services to the multi-ethnic communities of California, with 27 full-service offices in Los Angeles, Orange, San Bernardino, San Francisco, Santa Clara and San Diego counties, and a loan production office in Washington State. Hanmi Bank specializes in commercial, SBA and trade finance lending, and is a recognized community leader. Hanmi Bank's mission is to provide a full range of quality products and premier services to its customers and to maximize shareholder value. Additional information is available at www.hanmi.com.

Forward-Looking Statements

This press release contains forward-looking statements, which are included in accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statement. These factors include the following: inability to consummate the proposed transaction (the "Transaction") with Woori Finance Holdings Co. Ltd. ("Woori") on the terms contemplated in the Securities Purchase Agreement entered into with Woori on May 25, 2010; failure to receive regulatory or stockholder approval for the Transaction; inability to continue as a going concern; inability to raise additional capital on acceptable terms or at all; failure to maintain adequate levels of capital and liquidity to support our operations; the effect of regulatory orders we have entered into and potential future supervisory action against us or Hanmi Bank; general economic and business conditions internationally, nationally and in those areas in which we operate; volatility and deterioration in the credit and equity markets; changes in consumer spending, borrowing and savings habits; availability of capital from private and government sources; demographic changes; competition for loans and deposits and failure to attract or retain loans and deposits; fluctuations in interest rates and a decline in the level of our interest rate spread; risks of natural disasters related to our real estate portfolio; risks associated with Small Business Administration loans; failure to attract or retain key employees; changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums; ability to receive regulatory approval for Hanmi Bank to declare dividends to the Company; adequacy of our allowance for loan losses, credit quality and the effect of credit quality on our provision for credit losses and allowance for loan losses; changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements; our ability to successfully integrate acquisitions we may make; our ability to control expenses; and changes in securities markets. In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission ("SEC"), including attached as an Exhibit to a Current Report on Form 8-K filed with the SEC on June 18, 2010, and current and periodic reports filed with the U.S. Securities and Exchange Commission hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.

Additional Information

A proxy statement relating to certain of the matters discussed in this news release, including a more complete summary of the terms and conditions of the securities purchase agreement with Woori, was filed with the SEC on June 16, 2010. Hanmi is seeking approval of the issuance of securities to Woori at its upcoming meeting of stockholders to be held on July 28, 2010. Copies of the proxy statement and other related documents may be obtained for free from the SEC website (www.sec.gov) or by contacting Hanmi Financial Corp., Attn: Investor Relations, David J. Yang 213-637-4798. Hanmi's shareholders are advised to read the proxy statement, because it contains important information, and Hanmi notes that the shareholder meeting on the matters discussed in the proxy statement may occur after the closing of the registered rights and best efforts offering. Hanmi, its directors, executive officers and certain members of management and employees may be considered "participants in the solicitation" of proxies from Hanmi's shareholders in connection with certain of the matters discussed in this news release. Information regarding such persons and their interests in Hanmi is contained in Hanmi's proxy statements and annual reports on Form 10-K filed with the SEC. Hanmi has engaged the services of D.F. King & Co., Inc. to assist in soliciting proxies. Shareholders and investors may obtain additional information regarding the interests of Hanmi, its directors and executive officers and D.F. King & Co., Inc. in the matters discussed in this news release by reading the proxy statement and other relevant documents regarding the matters discussed in this news release.

Cautionary Statements

The issuance of the securities to Woori described in this news release have not been and will not be registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of the securities in any jurisdiction or state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction or state.


  HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
  CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
  (Dollars in Thousands)


                                     June 30,      March 31,     December 31,     June 30,        %
                                       2010           2010           2009           2009       Change
                                  -------------  -------------  -------------  -------------  ---------

              ASSETS
  ------------------------------

  Cash and Due from Banks              $ 60,034       $ 59,677       $ 55,263       $ 63,733     (5.8)%
  Interest-Bearing Deposits in
   Other Banks                          170,711        139,540         98,847        323,297    (47.2)%

  Federal Funds Sold                     20,000             --             --             --         --
                                  -------------  -------------  -------------  -------------  ---------


   Cash and Cash Equivalents            250,745        199,217        154,110        387,030    (35.2)%
                                  -------------  -------------  -------------  -------------  ---------

  Investment Securities                 191,094        114,231        133,289        214,619    (11.0)%

  Loans:
     Gross Loans, Net of
      Deferred Loan Fees              2,503,426      2,682,890      2,819,060      3,157,947    (20.7)%

     Allowance for Loan Losses        (176,667)      (177,820)      (144,996)      (105,268)     67.8 %
                                  -------------  -------------  -------------  -------------  ---------


       Loans Receivable, Net          2,326,759      2,505,070      2,674,064      3,052,679    (23.8)%
                                  -------------  -------------  -------------  -------------  ---------

  Due from Customers on
   Acceptances                            1,072          1,914            994          1,916    (44.1)%
  Premises and Equipment, Net            17,917         18,236         18,657         19,833     (9.7)%
  Accrued Interest Receivable             7,802          9,026          9,492         12,118    (35.6)%
  Other Real Estate Owned, Net           24,064         22,399         26,306         34,018    (29.3)%
  Deferred Income Taxes, Net                 --             --          3,608         28,504   (100.0)%
  Servicing Assets                        3,356          3,590          3,842          3,444     (2.6)%
  Other Intangible Assets, Net            2,754          3,055          3,382          4,115    (33.1)%
  Investment in Federal Home
   Loan Bank Stock, at Cost              29,556         30,697         30,697         30,697     (3.7)%
  Investment in Federal Reserve
   Bank Stock, at Cost                    6,783          7,878          7,878         10,053    (32.5)%
  Bank-Owned Life Insurance              26,874         26,639         26,408         25,937      3.6 %
  Income Taxes Receivable                 9,697         59,680         56,554         30,499    (68.2)%

  Other Assets                           16,477         16,669         13,425         15,389      7.1 %
                                  -------------  -------------  -------------  -------------  ---------


  TOTAL ASSETS                      $ 2,914,950    $ 3,018,301    $ 3,162,706    $ 3,870,851    (24.7)%
                                  =============  =============  =============  =============  =========


   LIABILITIES AND STOCKHOLDERS'
              EQUITY
  ------------------------------

  Liabilities:
   Deposits:
    Noninterest-Bearing               $ 574,843      $ 575,015      $ 556,306      $ 547,737      4.9 %

    Interest-Bearing                  2,000,271      2,075,265      2,193,021      2,740,186    (27.0)%
                                  -------------  -------------  -------------  -------------  ---------

      Total Deposits                  2,575,114      2,650,280      2,749,327      3,287,923    (21.7)%

   Accrued Interest Payable              14,024         13,146         12,606         31,859    (56.0)%
   Bank Acceptances Outstanding           1,072          1,914            994          1,916    (44.1)%
   Federal Home Loan Bank
    Advances                            153,816        153,898        153,978        210,952    (27.1)%
   Other Borrowings                       3,062          4,428          1,747          2,532     20.9 %
   Junior Subordinated
    Debentures                           82,406         82,406         82,406         82,406         --
   Accrued Expenses and Other
    Liabilities                          12,276         11,207         11,904         14,137    (13.2)%
                                  -------------  -------------  -------------  -------------  ---------

       Total Liabilities              2,841,770      2,917,279      3,012,962      3,631,725    (21.8)%


  Stockholders' Equity                   73,180        101,022        149,744        239,126    (69.4)%
                                  -------------  -------------  -------------  -------------  ---------

  TOTAL LIABILITIES AND
   STOCKHOLDERS' EQUITY             $ 2,914,950    $ 3,018,301    $ 3,162,706    $ 3,870,851    (24.7)%
                                  =============  =============  =============  =============  =========


  HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
  CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
  (Dollars in Thousands, Except Per Share Data)


                                         Three Months Ended                                   Six Months Ended
                   --------------------------------------------------------------  -------------------------------------

                    June 30,     March 31,        %        June 30,         %       June 30,     June 30,         %
                      2010         2010         Change       2009        Change       2010         2009         Change
                   -----------  -----------  -----------  -----------  ----------  -----------  -----------  -----------
  INTEREST AND
   DIVIDEND
   INCOME:
   Interest and
    Fees on Loans     $ 34,486     $ 36,695       (6.0)%     $ 44,718     (22.9)%     $ 71,181     $ 89,803      (20.7)%
   Taxable
    Interest on
    Investment
    Securities           1,359        1,084       25.4 %        1,370      (0.8)%        2,443        2,720      (10.2)%
   Tax-Exempt
    Interest on
    Investment
    Securities              77           77           --          621     (87.6)%          154        1,264      (87.8)%
   Interest on
    Term Federal
    Funds Sold              11           --           --          695     (98.4)%           11        1,395      (99.2)%
   Dividends on
    Federal
    Reserve Bank
    Stock                  103          104       (1.0)%          153     (32.7)%          207          306      (32.4)%
   Interest on
    Federal Funds
    Sold and
    Securities
    Purchased
    Under Resale
    Agreements              16           17       (5.9)%          112     (85.7)%           33          194      (83.0)%
   Interest on
    Interest-Bear
   ing Deposits
    in Other
    Banks                   99           55       80.0 %           11     800.0 %          154           13    1,084.6 %
   Dividends on
    Federal Home
    Loan Bank
    Stock                   20           21       (4.8)%           --          --           41           --           --
                   -----------  -----------  -----------  -----------  ----------  -----------  -----------  -----------
     Total
      Interest
      and
      Dividend
      Income            36,171       38,053       (4.9)%       47,680     (24.1)%       74,224       95,695      (22.4)%
                   -----------  -----------  -----------  -----------  ----------  -----------  -----------  -----------
  INTEREST
   EXPENSE:
   Interest on
    Deposits             8,813        9,704       (9.2)%       22,686     (61.2)%       18,517       45,471      (59.3)%
   Interest on
    Federal Home
    Loan Bank
    Advances               339          346       (2.0)%        1,010     (66.4)%          685        2,122      (67.7)%
   Interest on
    Junior
    Subordinated
    Debentures             692          669        3.4 %          846     (18.2)%        1,361        1,834      (25.8)%
   Interest on
    Other
    Borrowings              31           --           --            2   1,450.0 %           31            2    1,450.0 %
                   -----------  -----------  -----------  -----------  ----------  -----------  -----------  -----------
     Total
      Interest
      Expense            9,875       10,719       (7.9)%       24,544     (59.8)%       20,594       49,429      (58.3)%
                   -----------  -----------  -----------  -----------  ----------  -----------  -----------  -----------
  NET INTEREST
   INCOME BEFORE
   PROVISION FOR
   CREDIT LOSSES        26,296       27,334       (3.8)%       23,136      13.7 %       53,630       46,266       15.9 %
  Provision for
   Credit Losses        37,500       57,996      (35.3)%       23,934      56.7 %       95,496       69,887       36.6 %
                   -----------  -----------  -----------  -----------  ----------  -----------  -----------  -----------
  NET INTEREST
   INCOME (LOSS)
   AFTER
   PROVISION FOR
   CREDIT LOSSES      (11,204)     (30,662)      (63.5)%        (798)   1,304.0 %     (41,866)     (23,621)       77.2 %
                   -----------  -----------  -----------  -----------  ----------  -----------  -----------  -----------
  NON-INTEREST
   INCOME:
   Service
    Charges on
    Deposit
    Accounts             3,602        3,726       (3.3)%        4,442     (18.9)%        7,328        8,757      (16.3)%
   Insurance
    Commissions          1,206        1,278       (5.6)%        1,185       1.8 %        2,484        2,367        4.9 %
   Remittance
    Fees                   523          462       13.2 %          545      (4.0)%          985        1,068       (7.8)%
   Trade Finance
    Fees                   412          351       17.4 %          499     (17.4)%          763        1,005      (24.1)%
   Other Service
    Charges and
    Fees                   372          412       (9.7)%          467     (20.3)%          784          950      (17.5)%
   Bank-Owned
    Life
    Insurance
    Income                 235          231        1.7 %          227       3.5 %          466          461        1.1 %
   Net Gain on
    Sales of
    Loans                  220          (6)   (3,766.7)%           --          --          214            2   10,600.0 %
   Net Gain on
    Sales of
    Investment
    Securities               8          105      (92.4)%            1     700.0 %          113        1,168      (90.3)%
   Other
    Operating
    Income (Loss)           98          446      (78.0)%          214     (54.2)%          544          280       94.3 %
                   -----------  -----------  -----------  -----------  ----------  -----------  -----------  -----------
       Total
        Non-Inter
       est Income        6,676        7,005       (4.7)%        7,580     (11.9)%       13,681       16,058      (14.8)%
                   -----------  -----------  -----------  -----------  ----------  -----------  -----------  -----------
  NON-INTEREST
   EXPENSE:
   Salaries and
    Employee
    Benefits             9,011        8,786        2.6 %        8,508       5.9 %       17,797       16,011       11.2 %
   Deposit
    Insurance
    Premiums and
    Regulatory
    Assessments          4,075        2,224       83.2 %        3,929       3.7 %        6,299        5,419       16.2 %
   Occupancy and
    Equipment            2,674        2,725       (1.9)%        2,788      (4.1)%        5,399        5,672       (4.8)%
   Other Real
    Estate Owned
    Expense              1,718        5,700      (69.9)%        1,502      14.4 %        7,418        1,645      350.9 %
   Data
    Processing           1,487        1,499       (0.8)%        1,547      (3.9)%        2,986        3,083       (3.1)%
   Professional
    Fees                 1,022        1,066       (4.1)%          890      14.8 %        2,088        1,506       38.6 %
   Supplies and
    Communication
   s                       574          517       11.0 %          599      (4.2)%        1,091        1,169       (6.7)%
   Advertising
    and Promotion          503          535       (6.0)%          624     (19.4)%        1,038        1,193      (13.0)%
   Loan-Related
    Expense                310          307        1.0 %        1,217     (74.5)%          617        1,398      (55.9)%
   Amortization
    of Other
    Intangible
    Assets                 301          328       (8.2)%          406     (25.9)%          629          835      (24.7)%
   Other
    Operating
    Expenses             3,090        2,537       21.8 %        3,595     (14.0)%        5,627        6,024       (6.6)%
                   -----------  -----------  -----------  -----------  ----------  -----------  -----------  -----------
       Total
        Non-Inter
       est
        Expense         24,765       26,224       (5.6)%       25,605      (3.3)%       50,989       43,955       16.0 %
                   -----------  -----------  -----------  -----------  ----------  -----------  -----------  -----------
  LOSS BEFORE
   PROVISION
   (BENEFIT) FOR
   INCOME TAXES       (29,293)     (49,881)      (41.3)%     (18,823)      55.6 %     (79,174)     (51,518)       53.7 %
  Provision
   (Benefit) for
   Income Taxes           (36)        (395)      (90.9)%      (9,288)     (99.6)%        (431)     (24,787)      (98.3)%
                   -----------  -----------  -----------  -----------  ----------  -----------  -----------  -----------

  NET LOSS          $ (29,257)   $ (49,486)      (40.9)%    $ (9,535)     206.8 %   $ (78,743)   $ (26,731)      194.6 %
                   ===========  ===========  ===========  ===========  ==========  ===========  ===========  ===========

  LOSS PER SHARE:
   Basic              $ (0.57)     $ (0.97)      (41.2)%     $ (0.21)     171.4 %     $ (1.54)     $ (0.58)      165.5 %
   Diluted            $ (0.57)     $ (0.97)      (41.2)%     $ (0.21)     171.4 %     $ (1.54)     $ (0.58)      165.5 %
  WEIGHTED-AVERAG
  E SHARES
   OUTSTANDING:
   Basic            51,036,573   50,998,990                45,924,767               51,017,885   45,907,998
   Diluted          51,036,573   50,998,990                45,924,767               51,017,885   45,907,998
  SHARES
   OUTSTANDING AT
   PERIOD-END       51,198,390   51,182,390                46,130,967               51,198,390   46,130,967


  HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
  SELECTED FINANCIAL DATA (UNAUDITED)
  (Dollars in Thousands)

                                         Three Months Ended                                   Six Months Ended
                    -------------------------------------------------------------  -------------------------------------

                      June 30,     March 31,                June 30,                 June 30,      June 30,
                        2010          2010       %Change      2009       %Change       2010          2009       %Change
                    ------------  ------------  --------  ------------  ---------  ------------  ------------  ---------

  AVERAGE
   BALANCES:
   Average Gross
    Loans, Net of
    Deferred Loan
    Fees             $ 2,611,178   $ 2,765,701    (5.6)%   $ 3,282,152   (20.40)%   $ 2,688,012   $ 3,315,434    (18.9)%
   Average
    Investment
    Securities           158,543       125,340    26.5 %       179,129    (11.5)%       142,034       180,698    (21.4)%
   Average
    Interest-Earni
   ng Assets           2,965,975     3,010,938    (1.5)%     3,786,788   (21.70)%     2,988,332     3,796,434    (21.3)%
   Average Total
    Assets             2,978,245     3,086,198    (3.5)%     3,897,158    (23.6)%     3,031,917     3,922,648    (22.7)%
   Average
    Deposits           2,617,738     2,662,960    (1.7)%     3,223,309    (18.8)%     2,640,224     3,212,728    (17.8)%
   Average
    Borrowings           240,189       257,132    (6.6)%       386,477    (37.9)%       248,614       413,117    (39.8)%
   Average
    Interest-Beari
   ng Liabilities      2,292,121     2,360,992    (2.9)%     3,083,774   (25.70)%     2,326,367     3,099,465    (24.9)%
   Average
    Stockholders'
    Equity                91,628       137,931   (33.6)%       240,207    (61.9)%       114,651       252,658    (54.6)%
   Average
    Tangible
    Equity                88,692       134,679   (34.1)%       235,850    (62.4)%       111,558       248,092    (55.0)%

  PERFORMANCE
   RATIOS
   (Annualized):
   Return on
    Average Assets       (3.94)%       (6.50)%                 (0.98)%                  (5.24)%       (1.37)%
   Return on
    Average
    Stockholders'
    Equity             (128.07)%     (145.50)%                (15.92)%                (138.50)%      (21.34)%
   Return on
    Average
    Tangible
    Equity             (132.31)%     (149.02)%                (16.22)%                (142.34)%      (21.73)%
   Efficiency
    Ratio                 75.11%        76.37%                  83.36%                   75.75%        70.53%
   Net Interest
    Spread (1)             3.17%         3.29%                   1.90%                    3.22%         1.90%
   Net Interest
    Margin (1)             3.56%         3.69%                   2.49%                    3.62%         2.49%

  ALLOWANCE FOR
   LOAN LOSSES:
   Balance at
    Beginning of
    Period             $ 177,820     $ 144,996    22.6 %     $ 104,943     69.4 %     $ 144,996      $ 70,986    104.3 %
   Provision
    Charged to
    Operating
    Expense               37,793        59,217   (36.2)%        23,922     58.0 %        97,010        69,692     39.2 %
   Charge-Offs,
    Net of
    Recoveries          (38,946)      (26,393)    47.6 %      (23,597)     65.0 %      (65,339)      (35,410)     84.5 %
                    ------------  ------------  --------  ------------  ---------  ------------  ------------  ---------
     Balance at
      End of
      Period           $ 176,667     $ 177,820    (0.6)%     $ 105,268     67.8 %     $ 176,667     $ 105,268     67.8 %
                    ============  ============  ========  ============  =========  ============  ============  =========

   Allowance for
    Loan Losses to
    Total Gross
    Loans                  7.05%         5.14%                   3.33%                    7.05%         3.33%
   Allowance for
    Loan Losses to
    Total
    Non-Performing
    Loans                 72.96%        66.19%                  62.92%                   72.96%        62.92%

  ALLOWANCE FOR
   OFF-BALANCE
   SHEET ITEMS:
   Balance at
    Beginning of
    Period               $ 2,655       $ 3,876   (31.5)%       $ 4,279    (38.0)%       $ 3,876       $ 4,096     (5.4)%
   Provision
    Charged to
    Operating
    Expense                (293)       (1,221)   (76.0)%            12   (733.3)%       (1,514)           195   (876.4)%
                    ------------  ------------  --------  ------------  ---------  ------------  ------------  ---------
     Balance at
      End of
      Period             $ 2,362       $ 2,655   (11.0)%       $ 4,291    (45.0)%       $ 2,362       $ 4,291    (45.0)%
                    ============  ============  ========  ============  =========  ============  ============  =========

                          37,500        57,996   (35.3)%
  (1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.


  HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
  SELECTED FINANCIAL DATA (UNAUDITED) (Continued)
  (Dollars in Thousands)


                                    June 30,     March 31,              December 31,      %        June 30,        %
                                      2010          2010       %Change      2009       Change        2009       Change
                                  ------------  ------------  --------  ------------  ---------  ------------  ---------
  NON-PERFORMING ASSETS:
   Non-Accrual Loans                 $ 242,133     $ 262,232    (7.7)%     $ 219,000     10.6 %     $ 167,255     44.8 %
   Loans 90 Days or More Past
    Due and Still Accruing                  --            --        --            67   (100.0)%            41   (100.0)%
                                  ------------  ------------  --------  ------------  ---------  ------------  ---------
   Total Non-Performing Loans          242,133       262,232    (7.7)%       219,067     10.5 %       167,296     44.7 %

   Other Real Estate Owned, Net         24,064        22,399     7.4 %        26,306     (8.5)%        34,018    (29.3)%
                                  ------------  ------------  --------  ------------  ---------  ------------  ---------

   Total Non-Performing Assets       $ 266,197     $ 284,631    (6.5)%     $ 245,373      8.5 %     $ 201,314     32.2 %
                                  ------------  ------------  --------  ------------  ---------  ------------  ---------

   Total Non-Performing
    Loans/Total Gross Loans              9.67%         9.77%                   7.77%                    5.30%
   Total Non-Performing
    Assets/Total Assets                  9.13%         9.43%                   7.76%                    5.20%
   Total Non-Performing
    Assets/Allowance for Loan
    Losses                              150.7%        160.1%                  138.0%                   191.2%

  DELINQUENT LOANS (Accrual
   Status)                            $ 21,702      $ 68,640   (68.4)%      $ 41,151    (47.3)%      $ 44,771    (51.5)%
                                  ============  ============  ========  ============  =========  ============  =========

   Delinquent Loans (Accrual
    Status)/Total Gross Loans            0.87%         2.56%                   1.53%                    1.42%

  LOAN PORTFOLIO:
   Real Estate Loans                 $ 928,819     $ 986,417    (5.8)%   $ 1,043,097    (11.0)%   $ 1,137,395    (18.3)%
   Commercial and Industrial
    Loans (2)                        1,519,639     1,638,550    (7.3)%     1,714,212    (11.4)%     1,945,816    (21.9)%

   Consumer Loans                       55,790        58,886    (5.3)%        63,303    (11.9)%        76,098    (26.7)%
                                  ------------  ------------  --------  ------------  ---------  ------------  ---------
   Total Gross Loans                 2,504,248     2,683,853    (6.7)%     2,820,612    (11.2)%     3,159,309    (20.7)%

   Deferred Loan Fees                    (822)         (963)   (14.6)%       (1,552)    (47.0)%       (1,362)    (39.6)%
                                  ------------  ------------  --------  ------------  ---------  ------------  ---------
   Gross Loans, Net of Deferred
    Loan Fees                        2,503,426     2,682,890    (6.7)%     2,819,060    (11.2)%     3,157,947    (20.7)%

   Allowance for Loan Losses         (176,667)     (177,820)    (0.6)%     (144,996)     21.8 %     (105,268)     67.8 %
                                  ------------  ------------  --------  ------------  ---------  ------------  ---------

   Loans Receivable, Net           $ 2,326,759   $ 2,505,070    (7.1)%   $ 2,674,064    (13.0)%   $ 3,052,679    (23.8)%
                                  ============  ============  ========  ============  =========  ============  =========

  LOAN MIX:
   Real Estate Loans                     37.1%         36.8%                   37.0%                    36.0%
   Commercial and Industrial
    Loans (2)                            60.7%         61.1%                   60.8%                    61.6%

   Consumer Loans                         2.2%          2.1%                    2.2%                     2.4%
                                  ------------  ------------            ------------             ------------

     Total Gross Loans                  100.0%        100.0%                  100.0%                   100.0%
                                  ============  ============            ============             ============

  DEPOSIT PORTFOLIO:
   Demand - Noninterest-Bearing      $ 574,843     $ 575,015        --     $ 556,306      3.3 %     $ 547,737      4.9 %
   Savings                             127,848       121,041     5.6 %       111,172     15.0 %        88,477     44.5 %
   Money Market Checking and NOW
    Accounts                           434,533       488,366   (11.0)%       685,858    (36.6)%       424,760      2.3 %
   Time Deposits of $100,000 or
    More                             1,117,025     1,048,688     6.5 %       815,190     37.0 %     1,284,491    (13.0)%

   Other Time Deposits                 320,865       417,170   (23.1)%       580,801    (44.8)%       942,458    (66.0)%
                                  ------------  ------------  --------  ------------  ---------  ------------  ---------

     Total Deposits                $ 2,575,114   $ 2,650,280    (2.8)%   $ 2,749,327     (6.3)%   $ 3,287,923    (21.7)%
                                  ============  ============  ========  ============  =========  ============  =========

  DEPOSIT MIX:
   Demand - Noninterest-Bearing          22.3%         21.7%                   20.2%                    16.7%
   Savings                                5.0%          4.6%                    4.0%                     2.7%
   Money Market Checking and NOW
    Accounts                             16.9%         18.4%                   24.9%                    12.9%
   Time Deposits of $100,000 or
    More                                 43.4%         39.6%                   29.7%                    39.1%

   Other Time Deposits                   12.4%         15.7%                   21.2%                    28.6%
                                  ------------  ------------            ------------             ------------

     Total Deposits                     100.0%        100.0%                  100.0%                   100.0%
                                  ============  ============            ============             ============

  CAPITAL RATIOS (Bank Only):
   Total Risk-Based                      7.35%         7.81%                   9.07%                   10.70%
   Tier 1 Risk-Based                     6.02%         6.49%                   7.77%                    9.42%
   Tier 1 Leverage                       4.99%         5.68%                   6.69%                    8.01%

  (2) Commercial and industrial loans include owner-occupied property loans of $995.1 million, $1.08 billion and $1.21
   billion as of June 30, 2010, March 31, 2010, and June 30, 2009, respectively.


  HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
  AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID (UNAUDITED)
  (Dollars in Thousands)

                                                          Three Months Ended
              ----------------------------------------------------------------------------------------------------------

                         June 30, 2010                      March 31, 2010                       June 30, 2009
              ----------------------------------  ----------------------------------  ----------------------------------

                              Interest   Average                  Interest   Average                  Interest   Average
                 Average      Income/     Yield/     Average      Income/     Yield/     Average      Income/     Yield/
                 Balance      Expense     Rate       Balance      Expense     Rate       Balance      Expense     Rate
              -------------  ----------  -------  -------------  ----------  -------  -------------  ----------  -------


  INTEREST-E
  ARNING
   ASSETS
  ----------

  Loans:
   Real
    Estate
    Loans:
     Commerc
     ial
      Proper
     ty           $ 811,063    $ 10,351    5.12%      $ 836,147    $ 11,374    5.52%      $ 914,802    $ 13,041    5.72%
     Constru
     ction           81,067         946    4.68%        113,115       1,394    5.00%        178,456       1,594    3.58%
     Residen
     tial
      Proper
     ty              69,937         932    5.35%         74,077         783    4.29%         86,913       1,119    5.16%
              -------------  ----------  -------  -------------  ----------  -------  -------------  ----------  -------
      Total
       Real
       Estat
      e
       Loans        962,067      12,229    5.10%      1,023,339      13,551    5.37%      1,180,171      15,754    5.35%
   Commercia
   l and
    Industri
   al Loans
    (1)           1,593,326      21,484    5.41%      1,682,429      22,235    5.36%      2,025,414      27,774    5.50%
   Consumer
    Loans            56,684         738    5.22%         61,197         849    5.63%         77,989       1,108    5.70%
              -------------  ----------  -------  -------------  ----------  -------  -------------  ----------  -------
      Total
       Gross
       Loans      2,612,077      34,451    5.29%      2,766,965      36,635    5.37%      3,283,574      44,636    5.45%
   Prepaymen
   t Penalty
    Income               --          35       --             --          60       --             --          82       --
   Unearned
    Income
    on
    Loans,
    Net of
    Costs             (899)          --       --        (1,264)          --       --        (1,422)          --       --
              -------------  ----------  -------  -------------  ----------  -------  -------------  ----------  -------
      Gross
       Loans
      , Net       2,611,178      34,486    5.30%      2,765,701      36,695    5.38%      3,282,152      44,718    5.46%
              -------------  ----------  -------  -------------  ----------  -------  -------------  ----------  -------

  Investment
   Securitie
  s:
   Municipal
    Bonds
    (2)               7,484         119    6.36%          7,549         118    6.25%         59,222         956    6.46%
   U.S.
    Governme
   nt Agency
    Securiti
   es                65,894         560    3.40%         32,120         383    4.77%         13,177         144    4.37%
   Mortgage-
   Backed
    Securiti
   es                58,419         577    3.95%         61,920         490    3.17%         74,939         880    4.70%
   Collatera
   lized
    Mortgage
    Obligati
   ons               14,287         129    3.61%         11,382         113    3.97%         20,713         215    4.15%
   Corporate
    Bonds                --          --    0.00%             --          --       --            233          22   37.77%
   Other
    Securiti
   es                12,459          94    3.02%         12,369          98    3.17%         10,845         109    4.02%
              -------------  ----------  -------  -------------  ----------  -------  -------------  ----------  -------
      Total
       Inves
      tment
       Secur
      ities
       (2)          158,543       1,479    3.73%        125,340       1,202    3.84%        179,129       2,326    5.19%
              -------------  ----------  -------  -------------  ----------  -------  -------------  ----------  -------

  Other
   Interest-
  Earning
   Assets:
   Equity
    Securiti
   es                37,979         123    1.30%         39,369         125    1.27%         41,532         153    1.47%
   Federal
    Funds
    Sold and
    Securiti
   es
    Purchase
   d Under
    Resale
    Agreemen
   ts                12,198          16    0.52%         14,118          17    0.48%        135,362         112    0.33%
   Term
    Federal
    Funds
    Sold              7,253          11    0.61%             --          --       --        147,692         695    1.88%
   Interest-
   Bearing
    Deposits
    in Other
    Banks           138,824          99    0.29%         66,410          55    0.33%            921          11    4.78%
              -------------  ----------  -------  -------------  ----------  -------  -------------  ----------  -------
      Total
       Other
       Inter
      est-Ea
      rning
       Asset
      s             196,254         249    0.51%        119,897         197    0.66%        325,507         971    1.19%
              -------------  ----------  -------  -------------  ----------  -------  -------------  ----------  -------

  TOTAL
   INTEREST-
  EARNING
   ASSETS
   (2)          $ 2,965,975    $ 36,214    4.90%    $ 3,010,938    $ 38,094    5.13%    $ 3,786,788    $ 48,015    5.09%
              =============  ==========  =======  =============  ==========  =======  =============  ==========  =======


  INTEREST-B
  EARING
   LIABILITI
  ES
  ----------

  Interest-B
  earing
   Deposits:
   Savings        $ 125,016       $ 922    2.96%      $ 115,625       $ 824    2.89%       $ 84,588       $ 527    2.50%
   Money
    Market
    Checking
    and NOW
    Accounts        458,137       1,217    1.07%        558,916       1,622    1.18%        319,319       1,426    1.79%
   Time
    Deposits
    of
    $100,000
    or More       1,090,412       5,057    1.86%        924,055       4,677    2.05%      1,313,683      12,108    3.70%
   Other
    Time
    Deposits        378,367       1,617    1.71%        505,264       2,581    2.07%        979,707       8,625    3.53%
              -------------  ----------  -------  -------------  ----------  -------  -------------  ----------  -------
      Total
       Inter
      est-Be
      aring
       Depos
      its         2,051,932       8,813    1.72%      2,103,860       9,704    1.87%      2,697,297      22,686    3.37%
              -------------  ----------  -------  -------------  ----------  -------  -------------  ----------  -------

  Borrowings
  :
   FHLB
    Advances        153,859         339    0.88%        173,062         346    0.81%        302,220       1,010    1.34%
   Other
    Borrowin
   gs                 3,924          31    3.17%          1,664          --    0.00%          1,851           2    0.43%
   Junior
    Subordin
   ated
    Debentur
   es                82,406         692    3.37%         82,406         669    3.29%         82,406         846    4.12%
              -------------  ----------  -------  -------------  ----------  -------  -------------  ----------  -------
      Total
       Borro
      wings         240,189       1,062    1.77%        257,132       1,015    1.60%        386,477       1,858    1.93%
              -------------  ----------  -------  -------------  ----------  -------  -------------  ----------  -------

  TOTAL
   INTEREST-
  BEARING
   LIABILITI
  ES            $ 2,292,121     $ 9,875    1.73%    $ 2,360,992    $ 10,719    1.84%    $ 3,083,774    $ 24,544    3.19%
              =============  ==========  =======  =============  ==========  =======  =============  ==========  =======

  NET
   INTEREST
   INCOME
   (2)                         $ 26,339                            $ 27,375                            $ 23,471
                             ==========                          ==========                          ==========

  NET
   INTEREST
   SPREAD
   (2)                                     3.17%                               3.29%                               1.90%
                                         =======                             =======                             =======

  NET
   INTEREST
   MARGIN
   (2)                                     3.56%                               3.69%                               2.49%
                                         =======                             =======                             =======



                                                           Six Months Ended
                                ----------------------------------------------------------------------

                                           June 30, 2010                       June 30, 2009
                                ----------------------------------  ----------------------------------

                                                           Average                             Average
                                                Interest                            Interest
                                   Average      Income/     Yield/     Average      Income/     Yield/
                                   Balance      Expense     Rate       Balance      Expense     Rate
                                -------------  ----------  -------  -------------  ----------  -------


  INTEREST-EARNING ASSETS
  ----------------------------

  Loans:
   Real Estate Loans:
     Commercial Property            $ 823,535    $ 21,725    5.32%      $ 914,717    $ 25,978    5.73%
     Construction                      97,003       2,340    4.86%        179,237       3,141    3.53%

     Residential Property              71,996       1,715    4.80%         88,692       2,282    5.19%
                                -------------  ----------  -------  -------------  ----------  -------
      Total Real Estate Loans         992,534      25,780    5.24%      1,182,646      31,401    5.35%
   Commercial and Industrial
    Loans (1)                       1,637,631      43,719    5.38%      2,054,521      56,011    5.50%

   Consumer Loans                      58,928       1,587    5.43%         79,608       2,261    5.73%
                                -------------  ----------  -------  -------------  ----------  -------
      Total Gross Loans             2,689,093      71,086    5.33%      3,316,775      89,673    5.45%
   Prepayment Penalty Income               --          95       --             --         130       --
   Unearned Income on Loans,
    Net of Costs                      (1,081)          --       --        (1,341)          --       --
                                -------------  ----------  -------  -------------  ----------  -------

       Gross Loans, Net             2,688,012      71,181    5.34%      3,315,434      89,803    5.46%
                                -------------  ----------  -------  -------------  ----------  -------

  Investment Securities:
   Municipal Bonds (2)                  7,517         237    6.31%         59,055       1,945    6.59%
   U.S. Government Agency
    Securities                         49,100         943    3.84%         11,387         240    4.22%
   Mortgage-Backed Securities          60,161       1,067    3.55%         75,326       1,775    4.71%
   Collateralized Mortgage
    Obligations                        12,842         242    3.77%         27,136         563    4.15%
   Corporate Bonds                         --          --    0.00%            196          --    0.00%

   Other Securities                    12,414         192    3.09%          7,598         142    3.74%
                                -------------  ----------  -------  -------------  ----------  -------
       Total Investment
        Securities (2)                142,034       2,681    3.78%        180,698       4,665    5.16%
                                -------------  ----------  -------  -------------  ----------  -------

  Other Interest-Earning
   Assets:
   Equity Securities                   38,671         248    1.28%         41,629         306    1.47%
   Federal Funds Sold and
    Securities Purchased Under
    Resale Agreements                  13,152          33    0.50%        115,086         194    0.34%
   Term Federal Funds Sold              3,646          11    0.60%        143,044       1,395    1.95%
   Interest-Bearing Deposits
    in Other Banks                    102,817         154    0.30%            543          13    4.79%
                                -------------  ----------  -------  -------------  ----------  -------
       Total Other
        Interest-Earning
        Assets                        158,286         446    0.56%        300,302       1,908    1.27%
                                -------------  ----------  -------  -------------  ----------  -------

  TOTAL INTEREST-EARNING
   ASSETS (2)                     $ 2,988,332    $ 74,308    5.01%    $ 3,796,434    $ 96,376    5.12%
                                =============  ==========  =======  =============  ==========  =======


  INTEREST-BEARING LIABILITIES
  ----------------------------

  Interest-Bearing Deposits:
   Savings                          $ 120,347     $ 1,746    2.93%       $ 83,315     $ 1,032    2.50%
   Money Market Checking and
    NOW Accounts                      508,248       2,839    1.13%        331,270       3,280    2.00%
   Time Deposits of $100,000
    or More                         1,007,693       9,734    1.95%      1,196,816      22,430    3.78%

   Other Time Deposits                441,465       4,198    1.92%      1,074,947      18,729    3.51%
                                -------------  ----------  -------  -------------  ----------  -------
       Total Interest-Bearing
        Deposits                    2,077,753      18,517    1.80%      2,686,348      45,471    3.41%
                                -------------  ----------  -------  -------------  ----------  -------

  Borrowings:
   FHLB Advances                      163,407         685    0.85%        329,056       2,122    1.30%
   Other Borrowings                     2,801          31    2.23%          1,655           2    0.24%
   Junior Subordinated
    Debentures                         82,406       1,361    3.33%         82,406       1,834    4.49%
                                -------------  ----------  -------  -------------  ----------  -------

       Total Borrowings               248,614       2,077    1.68%        413,117       3,958    1.93%
                                -------------  ----------  -------  -------------  ----------  -------

  TOTAL INTEREST-BEARING
   LIABILITIES                    $ 2,326,367    $ 20,594    1.79%    $ 3,099,465    $ 49,429    3.22%
                                =============  ==========  =======  =============  ==========  =======


  NET INTEREST INCOME (2)                        $ 53,714                            $ 46,947
                                               ==========                          ==========


  NET INTEREST SPREAD (2)                                    3.22%                               1.90%
                                                           =======                             =======


  NET INTEREST MARGIN (2)                                    3.62%                               2.49%
                                                           =======                             =======

  (1) Commercial and industrial loans include owner-occupied commercial real estate loans
  (2) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax
   rate.
CONTACT:  Hanmi Financial Corporation
          Brian E. Cho, Chief Financial Officer
            (213) 368-3200
          David Yang, Investor Relations and Corporate Planning
            (213) 637-4798