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
Released July 27, 2010