Hanmi Financial Corporation Reports Third-Quarter 2008 Financial Results

LOS ANGELES--(BUSINESS WIRE)--

Hanmi Financial Corporation (NASDAQ:HAFC) ("we," "our," or "Hanmi"), the holding company for Hanmi Bank (the "Bank"), reported third-quarter net income of $4.3 million, or $0.09 per diluted share, compared to net income of $11.0 million, or $0.23 per diluted share, in the third quarter of 2007.

For the nine months ended September 30, 2008, Hanmi reported a net loss of $98.3 million, or ($2.14) per share, which includes a second-quarter non-cash goodwill impairment charge of $107.4 million, compared to net income of $39.3 million, or $0.81 per diluted share, in the first nine months of 2007. Excluding the second-quarter goodwill impairment charge, for the nine months ended September 30, 2008, non-GAAP net income was $9.1 million, or $0.20 per diluted share.

Commenting on the quarter, Jay S. Yoo, Hanmi's President and Chief Executive Officer, noted that third-quarter net income of $4.3 million was more than double second-quarter non-GAAP net income of $1.8 million. "While the overall environment remains extremely challenging, we are pleased to report another profitable operating quarter," said Yoo.

"We have spoken in the past of our focus on improving credit quality rather than growing the asset base, which in fact declined by $79.1 million to $3.77 billion at September 30 from June 30, 2008," said Yoo. "Gross loans were essentially unchanged at $3.35 billion, but total deposits declined by $162.2 million, or 5.5 percent, to $2.80 billion from $2.96 billion at June 30. The decline in deposits mirrors the experience of many community banks and other financial institutions in a time of extraordinary turmoil in the credit markets.

"The restructuring program about which we spoke last quarter is complete, and in time we expect to realize measurable improvements in operating efficiency," added Yoo. "Headcount has been reduced by approximately 10 percent, with a commensurate decrease in salaries and related overhead."

"Consistent with our program to enhance credit quality, in August we were pleased to announce the appointment of John Park as Chief Credit Officer. John is an important addition to our senior management team. With this team," concluded Yoo, "I believe we are well positioned to handle the challenges of what continues to be a very difficult environment for financial institutions."

Results of Operations

At the end of this release is a table titled "Reconciliation of GAAP to Non-GAAP" that provides reconciliations between various GAAP and non-GAAP metrics -- including non-interest expenses, net income and earnings per share -- that exclude the effect of the second-quarter $107.4 million goodwill impairment charge for the nine-month period ended September 30, 2008. We have provided them in the belief that they can be useful in evaluating our core operating performance. All subsequent references to non-GAAP metrics are to these tables.

Net interest income before provision for credit losses increased by $1.5 million, or 4.5 percent, to $35.6 million, compared to $34.1 million in the second quarter of 2008. The provision for credit losses was $13.2 million in the third quarter of 2008 compared to $19.2 million in the second quarter and $8.5 million in the third quarter of 2007.

Total non-interest income in the third quarter of 2008 was $5.3 million compared to $9.7 million in the second quarter and $9.5 million a year ago. Second-quarter non-interest income included a gain on sales of loans of $552,000, for which there were no comparable sales in the third quarter. The sequential decline in non-interest income also reflects a loss on the sale of securities available for sale of $483,000, as well as an other-than-temporary impairment loss on securities of $2.6 million; the latter consists of an impairment loss of $2.4 million on a Lehman Brothers corporate bond, and an impairment loss of $212,000 on a Community Reinvestment Act ("CRA") equity investment.

Total non-interest expenses in the third quarter of 2008 were $22.2 million compared to $129.4 million in the second quarter, which included the aforementioned non-cash impairment loss on goodwill, and $21.2 million a year ago; excluding the goodwill impairment charge, second-quarter 2008 non-GAAP non-interest expenses were $22.1 million. Total non-interest expenses include a total of $1.1 million in losses (included under "Other Operating Expenses") related to a derivative transaction to which Lehman Brothers was a party.

For the third quarter of 2008, the efficiency ratio (non-interest expenses divided by the sum of net interest income before provision for credit losses and non-interest income) was 54.33 percent, compared to 296.07 percent, or 50.43 percent excluding the goodwill impairment charge in the second quarter, and 44.95 percent in the comparable period a year ago.

"The provision for credit losses is the product of a comprehensive evaluation of the loan portfolio, and it reflects in large part the economic stress under which some of our borrowers find themselves," said Brian Cho, Chief Financial Officer. "However, we are encouraged by the fact that it is lower than in the prior quarter. The lower provision reflects improvements in some significant loans previously more adversely classified." Third-quarter charge-offs, net of recoveries, were $11.8 million compared to $8.2 million in the prior quarter and $6.1 million in the third quarter of 2007. The third-quarter charge-offs included approximately $2.7 million related to the loans fully reserved in the prior quarter.

The yield on the loan portfolio was 6.68 percent, a decline of 10 basis points compared to the second quarter, when the yield was 6.78 percent. The decline in yield, however, was offset by a decline in the cost of average interest-bearing deposits, which decreased by 27 basis points to 3.43 percent from 3.70 percent in the second quarter. This contributed to an improvement in net interest margin, which in the third quarter was 3.90 percent compared to 3.75 percent in the second quarter of 2008.

Balance Sheet and Asset Quality

At September 30, 2008, total assets were $3.77 billion compared to $3.85 billion at June 30, 2008, a decrease of $79.1 million, or 2.1 percent. Gross loans were essentially unchanged at $3.35 billion at September 30, 2008. Total deposits declined by $162.2 million, or 5.5 percent, to $2.80 billion at September 30, 2008, compared to $2.96 billion at June 30, 2008. FHLB advances and other borrowings increased by $84.9 million, or 17.0 percent, to $585.0 million at September 30, 2008, compared to $500.1 million at June 30, 2008.

As of September 30, 2008, the allowance for loan losses was $63.9 million, or 1.91 percent of gross loans (57.16 percent of total non-performing loans), compared to $63.0 million, or 1.88 percent of gross loans (56.14 percent of total non-performing loans), at June 30, 2008, and $34.5 million, or 1.07 percent of gross loans (77.19 percent of total non-performing loans), at September 30, 2007.

Delinquent loans were $102.9 million (3.08 percent of total gross loans) at September 30, 2008, compared to $138.4 (4.12 percent of total gross loans) at June 30, 2008. Although non-performing loans as of September 30, 2008 were substantially unchanged from the prior quarter at $111.9 million (3.34 percent of gross loans), this amount included a $24 million loan which was brought current during the quarter.

Capital Adequacy

The Bank's capital ratios exceed levels defined as "well-capitalized" by our regulators. At September 30, 2008, the Bank's Tier 1 Leverage, Tier 1 Risk-Based Capital and Total Risk-Based Capital ratios were 8.97 percent, 9.57 percent and 10.84 percent, respectively, compared to 8.60 percent, 9.39 percent and 10.64 percent, respectively, at June 30, 2008. "We continue to monitor our capital adequacy and our ability to address the economic challenges that face most financial institutions in the United States," said Yoo.

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 26 full-service offices in Los Angeles, Orange, San Bernardino, San Francisco, Santa Clara and San Diego counties, and six loan production offices in Colorado, Georgia, Illinois, Texas, Virginia and Washington. Hanmi Bank specializes in commercial, Small Business Administration ("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.hanmifinancial.com.

This release includes non-GAAP net income, non-GAAP earnings per share data, shares used in non-GAAP earnings per share calculation and non-GAAP non-interest expenses. These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these measures should be used only to evaluate our results of operations in conjunction with the corresponding GAAP measures.

We believe that the presentation of non-GAAP net income, non-GAAP earnings per share data, non-GAAP performance ratios, shares used in non-GAAP earnings per share calculation, and non-GAAP non-interest expenses, when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to our financial condition and results of operations. In addition, we believe that the presentation of non-GAAP income provides useful information to investors and management regarding operating activities for the periods presented.

For the internal budgeting process, our management uses financial statements that do not include impairment losses on goodwill. Our management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing our financial results.

Forward-Looking Statements

This 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: general economic and business conditions in those areas in which we operate; deterioration in the credit markets; availability of capital from private and government sources; demographic changes; competition for loans and deposits; fluctuations in interest rates; risks of natural disasters related to our real estate portfolio; risks associated with SBA loans; changes in governmental regulation; ability to receive regulatory approval for Hanmi Bank to declare dividends to Hanmi Financial; 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; the ability of borrowers to perform under the terms of their loans and other terms of credit agreements; our ability to successfully integrate acquisitions we may make; the availability of capital to fund the expansion of our business; and changes in securities markets. In addition, we set forth certain risks in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2007 and Quarterly Reports on Form 10-Q filed thereafter, 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.



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


                                   September 30, December 31,   %
                                       2008          2007      Change
                                   ------------- ------------ --------
              ASSETS
----------------------------------
Cash and Due from Banks              $   81,640   $  105,898   (22.9)%
Federal Funds Sold                        5,000       16,500   (69.7)%
                                   ------------- ------------ --------
  Cash and Cash Equivalents              86,640      122,398   (29.2)%
                                   ------------- ------------ --------
Investment Securities                   222,469      350,457   (36.5)%
Loans:
    Gross Loans, Net of Deferred
     Loan Fees                        3,345,049    3,284,708     1.8%
    Allowance for Loan Losses           (63,948)     (43,611)   46.6%
                                   ------------- ------------ --------
        Loans Receivable, Net         3,281,101    3,241,097     1.2%
                                   ------------- ------------ --------
Customers' Liability on
 Acceptances                              7,382        5,387    37.0%
Premises and Equipment, Net              20,703       20,800    (0.5)%
Accrued Interest Receivable              13,801       17,411   (20.7)%
Other Real Estate Owned                   2,988          287   941.1%
Servicing Assets                          4,018        4,336    (7.3)%
Goodwill                                     --      107,100  (100.0)%
Other Intangible Assets                   5,404        6,908   (21.8)%
Federal Reserve Bank and Federal
 Home Loan Bank Stock                    42,157       33,479    25.9%
Bank-Owned Life Insurance                25,239       24,525     2.9%
Other Assets                             54,089       49,472     9.3%
                                   ------------- ------------ --------
TOTAL ASSETS                         $3,765,991   $3,983,657    (5.5)%
                                   ============= ============ ========

  LIABILITIES AND STOCKHOLDERS'
              EQUITY
----------------------------------
Liabilities:
    Deposits:
        Noninterest-Bearing          $  634,593   $  680,282    (6.7)%
        Interest-Bearing              2,164,784    2,321,417    (6.7)%
                                   ------------- ------------ --------
            Total Deposits            2,799,377    3,001,699    (6.7)%
    Accrued Interest Payable             11,344       21,828   (48.0)%
    Acceptances Outstanding               7,382        5,387    37.0%
    FHLB Advances and Other
     Borrowings                         584,972      487,164    20.1%
    Junior Subordinated Debentures       82,406       82,406      --
    Other Liabilities                    13,314       14,617    (8.9)%
                                   ------------- ------------ --------
           Total Liabilities          3,498,795    3,613,101    (3.2)%
Stockholders' Equity                    267,196      370,556   (27.9)%
                                   ------------- ------------ --------
TOTAL LIABILITIES AND
 STOCKHOLDERS' EQUITY                $3,765,991   $3,983,657    (5.5)%
                                   ============= ============ ========


                                                September 30,   %
                                                    2007       Change
                                                ------------- --------
                    ASSETS
-----------------------------------------------
Cash and Due from Banks                           $  103,789   (21.3)%
Federal Funds Sold                                        --      --
                                                ------------- --------
  Cash and Cash Equivalents                          103,789   (16.5)%
                                                ------------- --------
Investment Securities                                357,616   (37.8)%
Loans:
    Gross Loans, Net of Deferred Loan Fees         3,219,871     3.9%
    Allowance for Loan Losses                        (34,503)   85.3%
                                                ------------- --------
        Loans Receivable, Net                      3,185,368     3.0%
                                                ------------- --------
Customers' Liability on Acceptances                    5,357    37.8%
Premises and Equipment, Net                           20,597     0.5%
Accrued Interest Receivable                           17,619   (21.7)%
Other Real Estate Owned                                  287   941.1%
Servicing Assets                                       4,328    (7.2)%
Goodwill                                             209,991  (100.0)%
Other Intangible Assets                                7,457   (27.5)%
Federal Reserve Bank and Federal Home Loan Bank
 Stock                                                25,525    65.2%
Bank-Owned Life Insurance                             24,285     3.9%
Other Assets                                          49,396     9.5%
                                                ------------- --------
TOTAL ASSETS                                      $4,011,615    (6.1)%
                                                ============= ========

     LIABILITIES AND STOCKHOLDERS' EQUITY
-----------------------------------------------
Liabilities:
    Deposits:
        Noninterest-Bearing                       $  690,513    (8.1)%
        Interest-Bearing                           2,357,044    (8.2)%
                                                ------------- --------
            Total Deposits                         3,047,557    (8.1)%
    Accrued Interest Payable                          20,449   (44.5)%
    Acceptances Outstanding                            5,357    37.8%
    FHLB Advances and Other Borrowings               361,344    61.9%
    Junior Subordinated Debentures                    82,406      --
    Other Liabilities                                 12,525     6.3%
                                                ------------- --------
           Total Liabilities                       3,529,638    (0.9)%
Stockholders' Equity                                 481,977   (44.6)%
                                                ------------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY        $4,011,615    (6.1)%
                                                ============= ========


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


                                  Three Months Ended
                ------------------------------------------------------
                 Sept. 30,    June 30,     %       Sept. 30,    %
                    2008        2008      Change      2007     Change
                ------------------------ -------- ----------- --------
INTEREST AND
 DIVIDEND
 INCOME:
 Interest and
  Fees on Loans $    56,134 $    55,905     0.4%  $    66,714  (15.9)%
 Taxable
  Interest on
  Investments         2,053       2,579   (20.4)%       3,308  (37.9)%
 Tax-Exempt
  Interest on
  Investments           650         662    (1.8)%         764  (14.9)%
 Dividends on
  FHLB and FRB
  Stock                 581         486    19.5%          350   66.0%
 Interest on
  Federal Funds
  Sold                   23          31   (25.8)%          61  (62.3)%
 Interest on
  Term Federal
  Funds Sold             --          --      --            --     --
                ------------------------ -------- ----------- --------
    Total
     Interest
     and
     Dividend
     Income          59,441      59,663    (0.4)%      71,197  (16.5)%
                ------------------------ -------- ----------- --------

INTEREST
 EXPENSE:
Interest on
 Deposits            19,365      20,487    (5.5)%      27,987  (30.8)%
Interest on FHLB
 Advances and
 Other
 Borrowings           3,329       3,944   (15.6)%       3,785  (12.0)%
Interest on
 Junior
 Subordinated
 Debentures           1,150       1,164    (1.2)%       1,675  (31.3)%
                ------------------------ -------- ----------- --------
    Total
     Interest
     Expense         23,844      25,595    (6.8)%      33,447  (28.7)%
                ------------------------ -------- ----------- --------

NET INTEREST
 INCOME BEFORE
 PROVISION FOR
 CREDIT LOSSES       35,597      34,068     4.5%       37,750   (5.7)%

Provision for
 Credit Losses       13,176      19,229   (31.5)%       8,464   55.7%
                ------------------------ -------- ----------- --------

NET INTEREST
 INCOME AFTER
 PROVISION FOR
 CREDIT LOSSES       22,421      14,839    51.1%       29,286  (23.4)%
                ------------------------ -------- ----------- --------

NON-INTEREST
 INCOME:
 Service Charges
  on Deposit
  Accounts            4,648       4,539     2.4%        4,463    4.1%
 Insurance
  Commissions         1,194       1,384   (13.7)%       1,131    5.6%
 Trade Finance
  Fees                  784         825    (5.0)%       1,082  (27.5)%
 Other Service
  Charges and
  Fees                  433         703   (38.4)%         691  (37.3)%
 Remittance Fees        499         539    (7.4)%         512   (2.5)%
 Gain on Sales
  of Loans               --         552  (100.0)%         523 (100.0)%
 Bank-Owned Life
  Insurance
  Income                241         234     3.0%          234    3.0%
 Gain (Loss) on
  Sales of
  Securities
  Available for
  Sale                 (483)         --      --            --     --
 Other-Than-
  Temporary
  Impairment
  Loss on
  Securities         (2,621)         --      --            --     --
 Other Income           633         876   (27.7)%         890  (28.9)%
                ------------------------ -------- ----------- --------
    Total Non-
     Interest
     Income           5,328       9,652   (44.8)%       9,526  (44.1)%
                ------------------------ -------- ----------- --------

NON-INTEREST
 EXPENSES:
 Salaries and
  Employee
  Benefits           10,782      11,301    (4.6)%      11,418   (5.6)%
 Occupancy and
  Equipment           2,786       2,792    (0.2)%       2,657    4.9%
 Data Processing      1,498       1,698   (11.8)%       1,540   (2.7)%
 Professional
  Fees                  647         995   (35.0)%         565   14.5%
 Advertising and
  Promotion             914         888     2.9%          943   (3.1)%
 Supplies and
  Communications        681         623     9.3%          704   (3.3)%
 Amortization of
  Other
  Intangible
  Assets                478         502    (4.8)%         570  (16.1)%
 Impairment Loss
  on Goodwill            --     107,393  (100.0)%          --     --
 Other Operating
  Expenses            4,449       3,251    36.9%        2,852   56.0%
                ------------------------ -------- ----------- --------
    Total Non-
     Interest
     Expenses        22,235     129,443   (82.8)%      21,249    4.6%
                ------------------------ -------- ----------- --------

INCOME (LOSS)
 BEFORE
 PROVISION FOR
 INCOME TAXES         5,514    (104,952) (105.3)%      17,563  (68.6)%
Provision for
 Income Taxes         1,166         595    96.0%        6,536  (82.2)%
                ------------------------ -------- ----------- --------

NET INCOME
 (LOSS)         $     4,348 $  (105,547) (104.1)% $    11,027  (60.6)%
                ======================== ======== =========== ========

EARNINGS (LOSS)
 PER SHARE:
 Basic          $      0.09 $     (2.30) (103.9)% $      0.23  (60.9)%
 Diluted        $      0.09 $     (2.30) (103.9)% $      0.23  (60.9)%

WEIGHTED-AVERAGE
 SHARES
 OUTSTANDING:
 Basic           45,881,549  45,881,549            47,355,143
 Diluted         45,933,043  45,881,549            47,536,078

SHARES
 OUTSTANDING AT
 PERIOD-END      45,905,549  45,900,549            46,986,341


                                             Nine Months Ended
                                     ---------------------------------
                                      Sept. 30,    Sept. 30,    %
                                         2008         2007     Change
                                     ------------ ----------- --------
INTEREST AND DIVIDEND INCOME:
 Interest and Fees on Loans          $   172,637  $   194,487  (11.2)%
 Taxable Interest on Investments           7,748       10,213  (24.1)%
 Tax-Exempt Interest on Investments        2,071        2,290   (9.6)%
 Dividends on FHLB and FRB Stock           1,481        1,055   40.4%
 Interest on Federal Funds Sold              137          963  (85.8)%
 Interest on Term Federal Funds Sold          --            5 (100.0)%
                                     ------------ ----------- --------
    Total Interest and Dividend
     Income                              184,074      209,013  (11.9)%
                                     ------------ ----------- --------

INTEREST EXPENSE:
Interest on Deposits                      64,699       80,973  (20.1)%
Interest on FHLB Advances and Other
 Borrowings                               11,750        8,875   32.4%
Interest on Junior Subordinated
 Debentures                                3,763        4,974  (24.3)%
                                     ------------ ----------- --------
    Total Interest Expense                80,212       94,822  (15.4)%
                                     ------------ ----------- --------

NET INTEREST INCOME BEFORE PROVISION
 FOR CREDIT LOSSES                       103,862      114,191   (9.0)%

Provision for Credit Losses               50,226       17,619  185.1%
                                     ------------ ----------- --------

NET INTEREST INCOME AFTER PROVISION
 FOR CREDIT LOSSES                        53,636       96,572  (44.5)%
                                     ------------ ----------- --------

NON-INTEREST INCOME:
 Service Charges on Deposit Accounts      13,904       13,389    3.8%
 Insurance Commissions                     3,893        3,535   10.1%
 Trade Finance Fees                        2,474        3,549  (30.3)%
 Other Service Charges and Fees            1,852        1,881   (1.5)%
 Remittance Fees                           1,543        1,503    2.7%
 Gain on Sales of Loans                      765        3,685  (79.2)%
 Bank-Owned Life Insurance Income            715          693    3.2%
 Gain (Loss) on Sales of Securities
  Available for Sale                         135           --     --
 Other-Than-Temporary Impairment
  Loss on Securities                      (2,621)          --     --
 Other Income                              2,085        1,970    5.8%
                                     ------------ ----------- --------
    Total Non-Interest Income             24,745       30,205  (18.1)%
                                     ------------ ----------- --------

NON-INTEREST EXPENSES:
 Salaries and Employee Benefits           33,363       33,961   (1.8)%
 Occupancy and Equipment                   8,360        7,740    8.0%
 Data Processing                           4,730        4,768   (0.8)%
 Professional Fees                         2,627        1,686   55.8%
 Advertising and Promotion                 2,614        2,493    4.9%
 Supplies and Communications               2,008        1,996    0.6%
 Amortization of Other Intangible
  Assets                                   1,504        1,776  (15.3)%
 Impairment Loss on Goodwill             107,393           --     --
 Other Operating Expenses                 10,667        9,288   14.8%
                                     ------------ ----------- --------
    Total Non-Interest Expenses          173,266       63,708  172.0%
                                     ------------ ----------- --------

INCOME (LOSS) BEFORE PROVISION FOR
 INCOME TAXES                            (94,885)      63,069 (250.4)%
Provision for Income Taxes                 3,393       23,788  (85.7)%
                                     ------------ ----------- --------

NET INCOME (LOSS)                    $   (98,278) $    39,281 (350.2)%
                                     ============ =========== ========

EARNINGS (LOSS) PER SHARE:
 Basic                               $     (2.14) $      0.81 (364.2)%
 Diluted                             $     (2.14) $      0.81 (364.2)%

WEIGHTED-AVERAGE SHARES OUTSTANDING:
 Basic                                45,869,069   48,232,464
 Diluted                              45,869,069   48,569,863

SHARES OUTSTANDING AT PERIOD-END      45,905,549   46,986,341


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


                                 Three Months Ended
                ------------------------------------------------------
                 September      June              September
                    30,          30,       %         30,       %
                   2008        2008      Change     2007      Change
                ----------- ------------ ------- ----------- ---------

AVERAGE
 BALANCES:
 Average Gross
  Loans, Net of
  Deferred Loan
  Fees          $3,341,250  $3,317,061     0.7%  $3,135,531     6.6%
 Average
  Investment
  Securities       244,027     296,790   (17.8)%    360,626   (32.3)%
 Average
  Interest-
  Earning
  Assets         3,630,755   3,657,676    (0.7)%  3,526,493     3.0%
 Average Total
  Assets         3,789,614   3,920,796    (3.3)%  3,915,517    (3.2)%
 Average
  Deposits       2,895,746   2,882,506     0.5%   3,016,118    (4.0)%
 Average
  Borrowings       590,401     621,239    (5.0)%    367,605    60.6%
 Average
  Interest-
  Bearing
  Liabilities    2,835,917   2,851,021    (0.5)%  2,683,930     5.7%
 Average
  Stockholders'
  Equity           267,433     377,096   (29.1)%    487,006   (45.1)%
 Average
  Tangible
  Equity           261,751     264,710    (1.1)%    269,255    (2.8)%


PERFORMANCE
 RATIOS:
 Return on
  Average
  Assets              0.46%     (10.83)%               1.12%
 Return on
  Average
  Stockholders'
  Equity              6.47%    (112.57)%               8.98%
 Return on
  Average
  Tangible
  Equity              6.61%    (160.37)%              16.25%
 Efficiency
  Ratio              54.33%     296.07%               44.95%
 Net Interest
  Spread              3.17%       2.95%                3.07%
 Net Interest
  Margin              3.90%       3.75%                4.25%


ALLOWANCE FOR
 LOAN LOSSES:
 Balance at the
  Beginning of
  Period        $   62,977  $   52,986    18.9%  $   32,190    95.6%
 Provision
  Charged to
  Operating
  Expense           12,802      18,211   (29.7)%      8,397    52.5%
 Charge-Offs,
  Net of
  Recoveries       (11,831)     (8,220)   43.9%      (6,084)   94.5%
                ----------- ------------ ------- ----------- ---------
     Balance at
      End of
      Period    $   63,948  $   62,977     1.5%  $   34,503    85.3%
                =========== ============ ======= =========== =========

 Allowance for
  Loan Losses
  to Total
  Gross Loans         1.91%       1.88%                1.07%
 Allowance for
  Loan Losses
  to Total Non-
  Performing
  Loans              57.16%      56.14%               77.19%


ALLOWANCE FOR
 OFF-BALANCE
 SHEET ITEMS:
 Balance at the
  Beginning of
  Period        $    3,932  $    2,914    34.9%  $    1,730   127.3%
 Provision
  Charged to
  Operating
  Expense              374       1,018   (63.3)%         67  (194.5)%
                ----------- ------------ ------- ----------- ---------
     Balance at
      End of
      Period    $    4,306  $    3,932     9.5%  $    1,797   139.6%
                =========== ============ ======= =========== =========


                                             Nine Months Ended
                                     ---------------------------------
                                      September    September
                                          30,         30,       %
                                        2008         2007      Change
                                     ------------ ----------- --------

AVERAGE BALANCES:
 Average Gross Loans, Net of
  Deferred Loan Fees                 $3,320,559   $3,011,946    10.2%
 Average Investment Securities          294,130      374,209   (21.4)%
 Average Interest-Earning Assets      3,659,255    3,435,932     6.5%
 Average Total Assets                 3,892,197    3,825,784     1.7%
 Average Deposits                     2,924,416    2,976,676    (1.8)%
 Average Borrowings                     588,267      308,406    90.7%
 Average Interest-Bearing
  Liabilities                         2,861,288    2,575,061    11.1%
 Average Stockholders' Equity           340,894      494,731   (31.1)%
 Average Tangible Equity                263,870      276,627    (4.6)%


PERFORMANCE RATIOS:
 Return on Average Assets                 (3.37)%       1.37%
 Return on Average Stockholders'
  Equity                                 (38.51)%      10.62%
 Return on Average Tangible Equity       (49.75)%      18.99%
 Efficiency Ratio                        134.73%       44.12%
 Net Interest Spread                       2.98%        3.21%
 Net Interest Margin                       3.79%        4.44%


ALLOWANCE FOR LOAN LOSSES:
 Balance at the Beginning of Period  $   43,611   $   27,557    58.3%
 Provision Charged to Operating
  Expense                                47,685       17,952   165.6%
 Charge-Offs, Net of Recoveries         (27,348)     (11,006)  148.5%
                                     ------------ ----------- --------
     Balance at End of Period        $   63,948   $   34,503    85.3%
                                     ============ =========== ========

 Allowance for Loan Losses to Total
  Gross Loans                              1.91%        1.07%
 Allowance for Loan Losses to Total
  Non-Performing Loans                    57.16%       77.19%


ALLOWANCE FOR OFF-BALANCE SHEET
 ITEMS:
 Balance at the Beginning of Period  $    1,765   $    2,130   (17.1)%
 Provision Charged to Operating
  Expense                                 2,541         (333) (863.1)%
                                     ------------ ----------- --------
     Balance at End of Period        $    4,306   $    1,797   139.6%
                                     ============ =========== ========


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

                   September    December           September
                       30,         31,       %         30,       %
                      2008        2007     Change     2007     Change
                   ----------- ----------- ------- ----------- -------
NON-PERFORMING
 ASSETS:
 Non-Accrual Loans $  111,335  $   54,252  105.2%  $   44,497  150.2%
 Loans 90 Days or
  More Past Due
  and Still
  Accruing                535         227  135.7%         199  168.8%
                   ----------- ----------- ------- ----------- -------
    Total Non-
     Performing
     Loans            111,870      54,479  105.3%      44,696  150.3%
    Other Real
     Estate Owned       2,988         287  941.1%         287  941.1%
                   ----------- ----------- ------- ----------- -------
      Total Non-
       Performing
       Assets      $  114,858  $   54,766  109.7%  $   44,983  155.3%
                   =========== =========== ======= =========== =======

 Total Non-
  Performing
  Loans/Total
  Gross Loans            3.34%       1.66%               1.39%
 Total Non-
  Performing
  Assets/Total
  Assets                 3.05%       1.37%               1.12%
 Total Non-
  Performing
  Assets/Allowance
  for Loan Losses       179.6%      125.6%              130.4%

DELINQUENT LOANS   $  102,917  $   45,086  128.3%  $   54,954   87.3%
                   =========== =========== ======= =========== =======

 Delinquent
  Loans/Total
  Gross Loans            3.08%       1.37%               1.71%

LOAN PORTFOLIO:
 Real Estate Loans $1,166,436  $1,101,907    5.9%  $1,099,100    6.1%
 Commercial and
  Industrial Loans  2,096,222   2,094,719    0.1%   2,033,009    3.1%
 Consumer Loans        84,031      90,449   (7.1)%     90,416   (7.1)%
                   ----------- ----------- ------- ----------- -------
    Total Gross
     Loans          3,346,689   3,287,075    1.8%   3,222,525    3.9%
 Deferred Loan
  Fees                 (1,640)     (2,367) (30.7)%     (2,654) (38.2)%
                   ----------- ----------- ------- ----------- -------
   Gross Loans,
    Net of
    Deferred Loan
    Fees            3,345,049   3,284,708    1.8%   3,219,871    3.9%
 Allowance for
  Loan Losses         (63,948)    (43,611)  46.6%     (34,503)  85.3%
                   ----------- ----------- ------- ----------- -------
   Loans
    Receivable,
    Net            $3,281,101  $3,241,097    1.2%  $3,185,368    3.0%
                   =========== =========== ======= =========== =======

LOAN MIX:
 Real Estate Loans       34.9%       33.5%               34.1%
 Commercial and
  Industrial Loans       62.6%       63.7%               63.1%
 Consumer Loans           2.5%        2.8%                2.8%
                   ----------- -----------         -----------
    Total Gross
     Loans              100.0%      100.0%              100.0%
                   =========== ===========         ===========

DEPOSIT PORTFOLIO:
 Noninterest-
  Bearing          $  634,593  $  680,282   (6.7)% $  690,513   (8.1)%
 Savings               86,157      93,099   (7.5)%     94,150   (8.5)%
 Money Market
  Checking and NOW
  Accounts            597,065     445,806   33.9%     476,257   25.4%
 Time Deposits of
  $100,000 or More    655,659   1,441,683  (54.5)%  1,474,764  (55.5)%
 Other Time
  Deposits            825,903     340,829  142.3%     311,873  164.8%
                   ----------- ----------- ------- ----------- -------
    Total Deposits $2,799,377  $3,001,699   (6.7)% $3,047,557   (8.1)%
                   =========== =========== ======= =========== =======

DEPOSIT MIX:
 Noninterest-
  Bearing                22.7%       22.7%               22.7%
 Savings                  3.1%        3.1%                3.1%
 Money Market
  Checking and NOW
  Accounts               21.3%       14.9%               15.6%
 Time Deposits of
  $100,000 or More       23.4%       48.0%               48.4%
 Other Time
  Deposits               29.5%       11.3%               10.2%
                   ----------- -----------         -----------
     Total
      Deposits          100.0%      100.0%              100.0%
                   =========== ===========         ===========


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


                                              Three Months Ended
                                        ------------------------------
                                            September 30, 2008
                                        ---------------------------
                                                   Interest Average
                                         Average    Income/  Yield/
                                          Balance   Expense   Rate
                                        ------------------- ------- --

 INTEREST-EARNING ASSETS

 Loans:
  Real Estate Loans:
      Commercial Property                 $867,684  $14,604   6.70%
      Construction                         199,969    2,539   5.05%
      Residential Property                  90,739    1,209   5.30%
                                        ------------------- -------
       Total Real Estate Loans           1,158,392   18,352   6.30%
  Commercial and Industrial Loans        2,099,708   36,128   6.85%
  Consumer Loans                            85,021    1,495   7.00%
                                        ------------------- -------
       Total Gross Loans                 3,343,121   55,975   6.66%
  Prepayment Penalty Income                     --      159     --
  Unearned Income on Loans, Net of
   Costs                                    (1,871)      --     --
                                        ------------------- -------
       Gross Loans, Net                  3,341,250   56,134   6.68%
                                        ------------------- -------

 Investment Securities:
  Municipal Bonds                           60,979      650   4.26%
  U.S. Government Agency Securities         46,777      483   4.13%
  Mortgage-Backed Securities                83,460      994   4.76%
  Collateralized Mortgage Obligations       41,266      441   4.27%
  Corporate Bonds                            7,751       89   4.59%
  Other Securities                           3,794       42   4.43%
                                        ------------------- -------
        Total Investment Securities        244,027    2,699   4.42%
                                        ------------------- -------

 Other Interest-Earning Assets:
  Equity Securities (includes FHLB and
   FRB Stock)                               39,929      581   5.82%
  Federal Funds Sold                         4,797       23   1.92%
  Term Federal Funds Sold                       --       --     --
  Interest-Earning Deposits                    752        4   2.13%
                                        ------------------- -------
        Total Other Interest-Earning
         Assets                             45,478      608   5.35%
                                        ------------------- -------

 TOTAL INTEREST-EARNING ASSETS          $3,630,755  $59,441   6.51%
                                        =================== =======

 INTEREST-BEARING LIABILITIES

 Interest-Bearing Deposits:
  Savings                                  $91,465     $533   2.32%
  Money Market Checking and NOW
   Accounts                                693,718    5,579   3.20%
  Time Deposits of $100,000 or More        903,895    8,063   3.55%
  Other Time Deposits                      556,438    5,190   3.71%
                                        ------------------- -------
        Total Interest-Bearing Deposits  2,245,516   19,365   3.43%
                                        ------------------- -------

 Borrowings:
  FHLB Advances and Other Borrowings       507,995    3,329   2.61%
  Junior Subordinated Debentures            82,406    1,150   5.55%
                                        ------------------- -------
        Total Borrowings                   590,401    4,479   3.02%
                                        ------------------- -------

 TOTAL INTEREST-BEARING LIABILITIES     $2,835,917  $23,844   3.34%
                                        =================== =======

 NET INTEREST INCOME                                $35,597
                                                   ========

 NET INTEREST SPREAD                                          3.17%
                                                            =======

 NET INTEREST MARGIN                                          3.90%
                                                            =======

                                             Three Months Ended
                                       -------------------------------
                                               June 30, 2008
                                       -----------------------------
                                                    Interest Average
                                         Average     Income/  Yield/
                                          Balance    Expense   Rate
                                       ------------ -------- -------

 INTEREST-EARNING ASSETS

 Loans:
  Real Estate Loans:
      Commercial Property                 $804,745   $13,810   6.90%
      Construction                         208,074     2,649   5.12%
      Residential Property                  89,949     1,205   5.39%
                                       ------------ -------- -------
       Total Real Estate Loans           1,102,768    17,664   6.44%
  Commercial and Industrial Loans        2,127,882    36,236   6.85%
  Consumer Loans                            88,491     1,596   7.25%
                                       ------------ -------- -------
       Total Gross Loans                 3,319,141    55,496   6.72%
  Prepayment Penalty Income                     --       409     --
  Unearned Income on Loans, Net of
   Costs                                    (2,080)       --     --
                                       ------------ -------- -------
       Gross Loans, Net                  3,317,061    55,905   6.78%
                                       ------------ -------- -------

 Investment Securities:
  Municipal Bonds                           63,177       662   4.19%
  U.S. Government Agency Securities         84,088       884   4.21%
  Mortgage-Backed Securities                91,488     1,076   4.70%
  Collateralized Mortgage Obligations       46,411       487   4.20%
  Corporate Bonds                            7,779        89   4.58%
  Other Securities                           3,847        42   4.37%
                                       ------------ -------- -------
        Total Investment Securities        296,790     3,240   4.37%
                                       ------------ -------- -------

 Other Interest-Earning Assets:
  Equity Securities (includes FHLB and
   FRB Stock)                               38,031       486   5.11%
  Federal Funds Sold                         5,621        31   2.21%
  Term Federal Funds Sold                       --        --     --
  Interest-Earning Deposits                    173         1   2.31%
                                       ------------ -------- -------
        Total Other Interest-Earning
         Assets                             43,825       518   4.73%
                                       -----------------------------

 TOTAL INTEREST-EARNING ASSETS          $3,657,676   $59,663   6.56%
                                       ============ ======== =======

 INTEREST-BEARING LIABILITIES

 Interest-Bearing Deposits:
  Savings                                  $91,803      $527   2.31%
  Money Market Checking and NOW
   Accounts                                718,257     5,707   3.20%
  Time Deposits of $100,000 or More      1,098,990    11,040   4.04%
  Other Time Deposits                      320,732     3,213   4.03%
                                       ------------ -------- -------
        Total Interest-Bearing Deposits  2,229,782    20,487   3.70%
                                       ------------ -------- -------

 Borrowings:
  FHLB Advances and Other Borrowings       538,833     3,944   2.94%
  Junior Subordinated Debentures            82,406     1,164   5.68%
                                       ------------ -------- -------
        Total Borrowings                   621,239     5,108   3.31%
                                       ------------ -------- -------

 TOTAL INTEREST-BEARING LIABILITIES     $2,851,021   $25,595   3.61%
                                       ============ ======== =======

 NET INTEREST INCOME                                 $34,068
                                                    ========

 NET INTEREST SPREAD                                           2.95%
                                                             =======

 NET INTEREST MARGIN                                           3.75%
                                                             =======

                                             Three Months Ended
                                       ------------------------------
                                              September 30, 2007
                                         ----------------------------
                                                     Interest Average
                                          Average     Income/  Yield/
                                           Balance    Expense   Rate
                                       ------------- -------- -------

 INTEREST-EARNING ASSETS

 Loans:
  Real Estate Loans:
      Commercial Property                  $775,605   $15,678   8.02%
      Construction                          227,779     4,814   8.38%
      Residential Property                   87,864     1,124   5.08%
                                         ----------- -------- -------
       Total Real Estate Loans            1,091,248    21,616   7.86%
  Commercial and Industrial Loans         1,951,478    43,169   8.78%
  Consumer Loans                             94,751     1,798   7.53%
                                         ----------- -------- -------
       Total Gross Loans                  3,137,477    66,583   8.42%
  Prepayment Penalty Income                      --       131     --
  Unearned Income on Loans, Net of
   Costs                                     (1,946)       --     --
                                         ----------- -------- -------
       Gross Loans, Net                   3,135,531    66,714   8.44%
                                         ----------- -------- -------

 Investment Securities:
  Municipal Bonds                            70,984       764   4.31%
  U.S. Government Agency Securities         119,704     1,286   4.30%
  Mortgage-Backed Securities                101,688     1,237   4.87%
  Collateralized Mortgage Obligations        55,619       612   4.40%
  Corporate Bonds                             7,811        89   4.56%
  Other Securities                            4,820        84   6.97%
                                         ----------- -------- -------
        Total Investment Securities         360,626     4,072   4.52%
                                         ----------- -------- -------

 Other Interest-Earning Assets:
  Equity Securities (includes FHLB and
   FRB Stock)                                25,431       350   5.51%
  Federal Funds Sold                          4,905        61   4.97%
  Term Federal Funds Sold                        --        --     --
  Interest-Earning Deposits                      --        --     --
                                         ----------- -------- -------
        Total Other Interest-Earning
         Assets                              30,336       411   5.42%
                                         ----------- -------- -------

 TOTAL INTEREST-EARNING ASSETS           $3,526,493   $71,197   8.01%
                                         =========== ======== =======

 INTEREST-BEARING LIABILITIES

 Interest-Bearing Deposits:
  Savings                                   $95,147      $567   2.36%
  Money Market Checking and NOW
   Accounts                                 471,756     4,164   3.50%
  Time Deposits of $100,000 or More       1,438,711    19,263   5.31%
  Other Time Deposits                       310,711     3,993   5.10%
                                         ----------- -------- -------
        Total Interest-Bearing Deposits   2,316,325    27,987   4.79%
                                         ----------- -------- -------

 Borrowings:
  FHLB Advances and Other Borrowings        285,199     3,785   5.27%
  Junior Subordinated Debentures             82,406     1,675   8.06%
                                         ----------- -------- -------
        Total Borrowings                    367,605     5,460   5.89%
                                         ----------- -------- -------

 TOTAL INTEREST-BEARING LIABILITIES      $2,683,930   $33,447   4.94%
                                         =========== ======== =======

 NET INTEREST INCOME                                  $37,750
                                                     ========

 NET INTEREST SPREAD                                            3.07%
                                                              =======

 NET INTEREST MARGIN                                            4.25%
                                                              =======

                                              Nine Months Ended
                                        ------------------------------
                                             September 30, 2008
                                        ----------------------------
                                                    Interest Average
                                         Average     Income/  Yield/
                                          Balance    Expense   Rate
                                       ------------ -------- -------

 INTEREST-EARNING ASSETS

 Loans:
  Real Estate Loans:
      Commercial Property                 $821,097   $42,894   6.98%
      Construction                         208,519     8,081   5.18%
      Residential Property                  90,069     3,584   5.32%
                                        ----------- -------- -------
       Total Real Estate Loans           1,119,685    54,559   6.51%
  Commercial and Industrial Loans        2,114,974   112,416   7.10%
  Consumer Loans                            87,920     4,789   7.28%
                                        ----------- -------- -------
       Total Gross Loans                 3,322,579   171,764   6.91%
  Prepayment Penalty Income                     --       873     --
  Unearned Income on Loans, Net of
   Costs                                    (2,020)       --     --
                                        ----------- -------- -------
       Gross Loans, Net                  3,320,559   172,637   6.94%
                                        ----------- -------- -------

 Investment Securities:
  Municipal Bonds                           65,329     2,071   4.23%
  U.S. Government Agency Securities         80,120     2,612   4.35%
  Mortgage-Backed Securities                90,652     3,246   4.77%
  Collateralized Mortgage Obligations       45,853     1,462   4.25%
  Corporate Bonds                            8,344       287   4.59%
  Other Securities                           3,832       136   4.73%
                                        ----------- -------- -------
        Total Investment Securities        294,130     9,814   4.45%
                                        ----------- -------- -------

 Other Interest-Earning Assets:
  Equity Securities (includes FHLB and
   FRB Stock)                               37,160     1,481   5.31%
  Federal Funds Sold                         7,096       137   2.57%
  Term Federal Funds Sold                       --        --     --
  Interest-Earning Deposits                    310         5   2.15%
                                        ----------- -------- -------
        Total Other Interest-Earning
         Assets                             44,566     1,623   4.86%
                                        ----------- -------- -------

 TOTAL INTEREST-EARNING ASSETS          $3,659,255  $184,074   6.72%
                                        =========== ======== =======

 INTEREST-BEARING LIABILITIES

 Interest-Bearing Deposits:
  Savings                                  $91,910    $1,587   2.31%
  Money Market Checking and NOW
   Accounts                                656,625    15,946   3.24%
  Time Deposits of $100,000 or More      1,118,331    34,790   4.16%
  Other Time Deposits                      406,155    12,376   4.07%
                                        ----------- -------- -------
        Total Interest-Bearing Deposits  2,273,021    64,699   3.80%
                                        ----------- -------- -------

 Borrowings:
  FHLB Advances and Other Borrowings       505,861    11,750   3.10%
  Junior Subordinated Debentures            82,406     3,763   6.10%
                                        ----------- -------- -------
        Total Borrowings                   588,267    15,513   3.52%
                                        ----------- -------- -------

 TOTAL INTEREST-BEARING LIABILITIES     $2,861,288   $80,212   3.74%
                                        =========== ======== =======

 NET INTEREST INCOME                                $103,862
                                                    ========

 NET INTEREST SPREAD                                           2.98%
                                                             =======

 NET INTEREST MARGIN                                           3.79%
                                                             =======

                                              Nine Months Ended
                                        ------------------------------
                                               September 30, 2007
                                          ----------------------------
                                                      Interest Average
                                           Average     Income/  Yield/
                                            Balance    Expense   Rate
                                        ------------- -------- -------

 INTEREST-EARNING ASSETS

 Loans:
  Real Estate Loans:
      Commercial Property                   $765,880   $46,380   8.10%
      Construction                           218,693    14,889   9.10%
      Residential Property                    86,505     3,378   5.22%
                                          ----------- -------- -------
       Total Real Estate Loans             1,071,078    64,647   8.07%
  Commercial and Industrial Loans          1,846,247   123,143   8.92%
  Consumer Loans                              96,839     5,987   8.27%
                                          ----------- -------- -------
       Total Gross Loans                   3,014,164   193,777   8.60%
  Prepayment Penalty Income                       --       710     --
  Unearned Income on Loans, Net of Costs      (2,218)       --     --
                                          ----------- -------- -------
       Gross Loans, Net                    3,011,946   194,487   8.63%
                                          ----------- -------- -------

 Investment Securities:
  Municipal Bonds                             71,883     2,290   4.25%
  U.S. Government Agency Securities          118,894     3,775   4.23%
  Mortgage-Backed Securities                 110,656     3,958   4.77%
  Collateralized Mortgage Obligations         59,977     1,960   4.36%
  Corporate Bonds                              7,862       268   4.55%
  Other Securities                             4,937       252   6.81%
                                          ----------- -------- -------
        Total Investment Securities          374,209    12,503   4.45%
                                          ----------- -------- -------

 Other Interest-Earning Assets:
  Equity Securities (includes FHLB and
   FRB Stock)                                 25,244     1,055   5.57%
  Federal Funds Sold                          24,405       963   5.26%
  Term Federal Funds Sold                        128         5   5.21%
  Interest-Earning Deposits                       --        --     --
                                          ----------- -------- -------
        Total Other Interest-Earning
         Assets                               49,777     2,023   5.42%
                                          ----------- -------- -------

 TOTAL INTEREST-EARNING ASSETS            $3,435,932  $209,013   8.13%
                                          =========== ======== =======

 INTEREST-BEARING LIABILITIES

 Interest-Bearing Deposits:
  Savings                                    $98,440    $1,530   2.08%
  Money Market Checking and NOW Accounts     444,173    11,302   3.40%
  Time Deposits of $100,000 or More        1,418,825    56,539   5.33%
  Other Time Deposits                        305,217    11,602   5.08%
                                          ----------- -------- -------
        Total Interest-Bearing Deposits    2,266,655    80,973   4.78%
                                          ----------- -------- -------

 Borrowings:
  FHLB Advances and Other Borrowings         226,000     8,875   5.25%
  Junior Subordinated Debentures              82,406     4,974   8.07%
                                          ----------- -------- -------
        Total Borrowings                     308,406    13,849   6.00%
                                          ----------- -------- -------

 TOTAL INTEREST-BEARING LIABILITIES       $2,575,061   $94,822   4.92%
                                          =========== ======== =======

 NET INTEREST INCOME                                  $114,191
                                                      ========

 NET INTEREST SPREAD                                             3.21%
                                                               =======

 NET INTEREST MARGIN                                             4.44%
                                                               =======


HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP (UNAUDITED)
(Dollars in Thousands, Except Per Share Amounts)



                                    Three Months Ended June 30, 2008
                                   ----------------------------------
                                       Net       Weighted-
                                     Income       Average       Per
                                     (Loss)       Shares       Share
                                   (Numerator) (Denominator)  Amount
                                   ----------- -------------  -------

 GAAP Net Loss                      $(105,547)    45,881,549  $(2.30)

     Impairment Loss on Goodwill      107,393
                                   -----------
     Additional Dilutive
      Securities - Options                            62,684
                                               -------------
                                                              $ 2.34
                                                              -------

 Non-GAAP Net Income, Excluding
 Impairment Loss on Goodwill        $   1,846     45,944,233  $ 0.04
                                   =========== =============  =======



                                  Nine Months Ended September 30, 2008
                                  ------------------------------------
                                       Net        Weighted-
                                     Income        Average       Per
                                     (Loss)        Shares       Share
                                   (Numerator)  (Denominator)  Amount
                                  ------------- -------------  -------

 GAAP Net Loss                        $(98,278)    45,869,069  $(2.14)

     Impairment Loss on Goodwill       107,393
                                  -------------
     Additional Dilutive
      Securities - Options                             61,902
                                                -------------
                                                               $ 2.34
                                                               -------

 Non-GAAP Net Income, Excluding
 Impairment Loss on Goodwill          $  9,115     45,930,971  $ 0.20
                                  ============= =============  =======


                                     Three Months Ended June 30, 2008
                                     --------------------------------

                                                   Less
                                                 Impairment
                                                  Loss on
                                        GAAP      Goodwill   Non-GAAP
                                     ---------- ------------ --------

Total Non-Interest Expenses          $129,443   $(107,393)   $22,050
Return on Average Assets               (10.83)%     11.02%      0.19%
Return on Average Shareholders'
 Equity                               (112.57)%    114.54%      1.97%
Return on Average Tangible Equity     (160.36)%    163.16%      2.80%
Efficiency Ratio                       296.07%    (245.64)%    50.43%



                                  Nine Months Ended September 30, 2008
                                  ------------------------------------

                                                    Less
                                                  Impairment
                                                   Loss on
                                       GAAP        Goodwill   Non-GAAP
                                  -------------- ------------ --------

Total Non-Interest Expenses           $173,266   $(107,393)   $65,873
Return on Average Assets                 (3.37)%      3.68%      0.31%
Return on Average Shareholders'
 Equity                                 (38.51)%     42.08%      3.57%
Return on Average Tangible Equity       (49.75)%     54.36%      4.61%
Efficiency Ratio                        134.73%     (83.51)%    51.22%

Source: Hanmi Financial Corporation