Exhibit 99.1
Hanmi Financial Corporation
Reports Third-quarter 2009 Financial Results and
Formalizes Agreement with Regulators
LOS ANGELES — November 5, 2009 — Hanmi Financial Corporation (NASDAQ: HAFC) (“we,” “our” or “Hanmi”), the holding company for Hanmi Bank (the “Bank”), reported a third-quarter net loss of $59.7 million, or ($1.26) per share, compared to net income of $4.3 million, or $0.09 per diluted share, in the third quarter of 2008. During the third quarter, we incurred tax charges of $38.2 million related to a valuation allowance of deferred tax assets. Excluding this charge, the net loss would have been $21.5 million for the third quarter of 2009, primarily driven by $49.5 million in credit loss provisions.
Hanmi also announced today that Hanmi and the Bank have entered into a Written Agreement (the “Written Agreement”) with the Federal Reserve Bank of San Francisco (the “FRB”), effective as of November 2, 2009. In addition, the board of directors of the Bank has consented to the issuance of a Final Order (the “Final Order”) by the California Department of Financial Institutions (the “DFI”), effective as of November 2, 2009. The Written Agreement and the Final Order provide for certain actions to be taken in cooperation with the regulatory authorities and are intended to address various matters including issues related to capital, liquidity and asset quality.
Jay S. Yoo, President and Chief Executive Officer, commented, “In the continuing weakness of the credit markets, the third-quarter provision for loan losses was again a record high, leading to disappointing operating results. However, we have continued our business strategies in the third quarter and achieved meaningful improvements in our core banking foundation. The balance sheet deleveraging strategy changed our liability profile to core-deposit based and substantially expanded our net interest margin. Various asset quality management programs, as well as higher loan charge-offs and transfers to other real estate owned, at last reduced delinquent loans and we also took a step forward in our capital raising efforts by receiving a $6.95 million capital infusion from Leading Investment & Securities Co. as previously announced. We are currently in active negotiations with certain Korean institutional investors relating to a larger capital infusion sufficient for Hanmi to weather this credit environment.
Regulatory Agreements
The Final Order and Written Agreement require the Bank to prepare and submit written plans to the DFI and the FRB that address the following items: (i) strengthening board oversight of the management and operation of the Bank; (ii) strengthening credit risk management practices; (iii) improving credit administration policies and procedures; (iv) improving the Bank’s position with respect to problem assets; (v) improving the capital position of the Bank and, with respect to the Written Agreement, of Hanmi; (vi) maintaining adequate reserves for loan and lease losses; (vii) improving the Bank’s earnings through a strategic plan and a budget for 2010; (viii) improving the Bank’s liquidity position and funds management practices; and (ix) contingency funding. In addition, the Order and the Agreement place restrictions on the Bank’s lending to borrowers who have adversely classified loans with the Bank and require the Bank to charge off or collect certain problem loans. The Final Order and Written Agreement also require the Bank to review and revise its allowance for loan and lease losses consistent with relevant supervisory guidance.. The Bank is also prohibited from paying dividends, incurring, increasing or guaranteeing any debt, or making certain changes to its business without prior approval from the DFI, and the Bank and Hanmi must obtain prior approval from the FRB prior to declaring and paying dividends.

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Under the Final Order, the Bank is also required to increase its capital and maintain certain regulatory capital ratios prior to certain dates specified therein. By July 31, 2010, the Bank will be required to increase its contributed equity capital by not less than an additional $100 million. The Bank will be required to maintain a ratio of tangible shareholders’ equity to total tangible assets as follows:
     
    Ratio of Tangible Shareholders’
Date   Equity to Total Tangible Assets
By December 31, 2009   Not Less Than 7.0 Percent
     
By July 31, 2010   Not Less Than 9.0 Percent
     
From December 31, 2010 and
Until the Order is Terminated
  Not Less Than 9.5 Percent
If the Bank is not able to maintain the capital ratios identified in the Final Order, it must notify the DFI, and Hanmi and the Bank are required to notify the FRB if their respective capital ratios fall below those set forth in the capital plan to be submitted to the FRB.
Results of Operations
The net interest income before provision for credit losses increased by $3.4 million, or 14.6 percent, to $26.5 million in the third quarter of 2009 compared to $23.1 million in the prior quarter. Such increase in net interest income reflects the effects of our core deposit campaign that was launched in the prior quarter. Most of our high-cost six-month time deposits that were offered from December 2008 through March 2009 and matured in the third quarter of 2009 have been rolled over into lower-cost deposits and the average cost of interest-bearing deposits decreased by 67 basis points to 2.70 percent from 3.37 percent in the second quarter of 2009. On the other hand, our stringent lending policy allowed us to increase our loan pricing and to improve the average yield on the loan portfolio to 5.50 percent in the third quarter of 2009 compared to 5.46 percent in the prior quarter. The combined result was the increase of net interest margin by 52 basis points to 3.00 percent in the third quarter compared to 2.48 percent in the second quarter.
The provision for credit losses in the third quarter of 2009 increased by $25.6 million to $49.5 million compared to $23.9 million in the prior quarter, due mainly to the $16.4 million additional provision provided to the impaired loans that was part of our continuing efforts to address the further deteriorating commercial real estate market. For the first nine months of 2009, the provision for credit losses more than doubled to $119.4 million compared to $50.2 million for the prior year’s same period, reflecting our effort to prepare for the uncertain credit risk in this weak credit market.
Total non-interest income in the third quarter of 2009 was $8.2 million compared to $6.7 million in the prior quarter and $5.3 million in the third quarter of 2008. The sequential increase in non-interest income reflects an $864,000 net gain on sales of SBA loans. The second quarter income was also reduced by an impairment loss of $909,000 on a low income housing investment
Total non-interest expense in the third quarter of 2009 was $23.7 million compared to $24.7 million in the second quarter, a decrease of $1.0 million, or 4.1 percent, and an increase of $1.5 million, or 6.5 percent, compared to $22.2 million in the third quarter of 2008. The decrease from the second quarter of 2009 was mainly caused by the reduction of deposit insurance premiums and regulatory assessments. Increased expenses in the second quarter

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reflect the one-time FDIC special assessment fees of $1.8 million. Reflecting a second-quarter out-of-court settlement fee of $850,000, third-quarter loan-related expenses declined by 84.2 percent to $192,000 from $1.2 million in the second quarter. Salaries and employee benefits, the biggest single contributor to total non-interest expense, was essentially unchanged at $8.6 million compared to $8.5 million in the prior quarter. We will continue to hold down all operating costs for the remainder of 2009; however, further cost control may be offset by regulatory-related expenses such as professional fees and potential FDIC assessments. We also expect that expenses to manage our asset quality in this stressed credit environment continue to be significant. In the third quarter, expenses in relation with other real estate owned (“OREO”), such as valuation expenses and maintenance costs, more than doubled to $3.4 million from the prior quarter’s $1.5 million.
Due to increased net interest income before provision for credit losses and increased non-interest income, along with decreased non-interest expense, the efficiency ratio (non-interest expense divided by the sum of net interest income before provision for credit losses and non-interest income) sequentially improved to 68.2 percent compared to 82.9 percent in the second quarter of 2009.
Balance Sheet and Asset Quality
Total assets at September 30, 2009 decreased by $418.3 million, or 10.8 percent, to $3.46 billion from $3.88 billion at December 31, 2008, and decreased by $308.5 million, or 8.2 percent, from $3.77 billion at September 30, 2008, reflecting the Bank’s ongoing strategy to deleverage the balance sheet.
With our ongoing stringent lending policy to carefully evaluate all maturing loans and selectively renew our loans based on quality, gross loans, net of deferred loan fees, decreased by $384.6 million, or 11.4 percent, to $2.98 billion as of September 30, 2009, compared to $3.36 billion at December 31, 2008, and decreased by $367.5 million, or 11.0 percent, compared to $3.35 billion at September 30, 2008.
The success of our core deposit campaign together with our deleveraging strategy substantially changed our liability profile in the third quarter by increasing our core deposits and decreasing the brokered deposits and borrowings.
Our total deposits decreased by $78.2 million, or 2.5 percent, to $2.99 billion at September 30, 2009, compared to $3.07 billion at December 31, 2008, and increased by $192.5 million, or 6.9 percent, compared to $2.80 billion at September 30, 2008. Such decrease was carefully designed under our deleveraging strategy which allows some run off of volatile and expensive time deposits. For the nine months ended September 30, 2009, time deposits decreased by $472.1 million and our non-time deposits increased by $393.9 million. For the same nine month period, FHLB advances also decreased by $261.4 million, or 61.9 percent, to $160.8 million at September 30, 2009, compared to $422.2 million at December 31, 2008, At September 30, 2009, brokered deposits, excluding CDARS, were $365.7 million, a decrease of $508.4 million, or 58.2 percent, compared to $874.1 million at December 31, 2008.
Third quarter charge-offs, net of recoveries, were $29.9 million compared to $23.6 million in the prior quarter and $11.8 million in the third quarter of 2008. Out of the third quarter charge-offs, $22.8 million was made from unsecured commercial and industrial (“C&I”) loans, including one large loan in the amount of $7.0 million to an international trading company. Also included were some commercial real estate and business property loans due to decreases in hard collateral values, resulted in partial charge-offs of $4.0 million, with the remaining balance of $3.5 million consisting of consumer and SBA loans.

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Delinquent loans were $151.0 million (5.07 percent of total gross loans) at September 30, 2009, compared to $178.7 million (5.66 percent of total gross loans) at June 30, 2009, $164.4 million (4.95 percent of total gross loans) at March 31, 2009, $128.5 million (3.82 percent of total gross loans) at December 31, 2008, and $102.9 million (3.08 percent of total gross loans) at Sept 30, 2008. The decrease in delinquencies from the prior quarter is attributable to diligent collection efforts, which involve proactive negotiations with borrowers in financial difficulty, often leading to loan modifications or charge-offs.
Non-performing loans (“NPL”) at September 30, 2009 were $174.4 million (5.85 percent of total gross loans), compared to $167.3 million (5.3 percent of total gross loans) at June 30, 2009, $156.3 million (4.71 percent of total gross loans) at March 31, 2009, $121.9 million (3.62 percent of total gross loans) at December 31, 2008, and $111.9 million (3.34 percent of total gross loans) at September 30, 2008. The breakdown in third quarter 2009 NPLs was as follows: 10.4 percent were construction loans, 47.6 percent were C&I loans including owner/user business property loans, 30.3 percent were commercial real estate loans (“CRE”) loans, 9.5 percent were SBA loans, and 2.2 percent were consumer loans.
As of September 30, 2009, total non-performing assets of $201.6 million included OREO of $27.1 million compared to total non-performing assets of $201.3 million with OREO of $34.0 million at June 30, 2009, $157.5 million with OREO of $1.2 million at March 31, 2009, and $122.7 million with OREO of $823,000 at December 31, 2008. At September 30, 2008, total non-performing assets were $114.9 million, which included OREO of $3.0 million. At September 30, 2009, OREO was $6.9 million lower, when compared to the prior quarter, mainly due to the sale of a golf course north of San Diego.
At September 30, 2009, the allowance for loan losses was $124.8 million, or 4.19 percent of total gross loans (71.53 percent of total non-performing loans), compared to $71.0 million, or 2.11 percent of total gross loans (58.23 percent of total non-performing loans), at December 31, 2008, and $63.9 million, or 1.91 percent of total gross loans (57.16 percent of total non-performing loans), at September 30, 2008.
Capital Adequacy
On September 4, 2009, Hanmi received an investment of $6.95 million from Leading Investment & Securities Co. Ltd. IWL Partners LLC, an affiliate of Leading, is additionally preparing a separate definitive agreement that would result in a larger equity capital infusion. If completed as expected, the Korean investment will augment Hanmi’s capital reserves and, in conjunction with our program to deleverage the balance sheet, will enhance our ability to weather the current recession and emerge well-positioned to take advantage of opportunities as the economy recovers.
At September 30, 2009, the Bank’s Tier 1 Leverage, Tier 1 Risk-Based Capital, and Total Risk-Based Capital ratios were 7.05 percent, 8.40 percent and 9.69 percent, respectively, compared to 8.85 percent, 9.44 percent, and 10.71 percent, respectively, at December 31, 2008. The Bank’s ratio of tangible shareholders’ equity to total tangible assets was 7.57 percent at September 30, 2009.
Deferred Tax Assets
During the third quarter of 2009, Hanmi established a valuation allowance of $44.9 million against its existing net deferred tax assets. The Company’s primary deferred tax assets relate to its allowance for loan losses and

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impairment charges. Under generally accepted accounting principles, a valuation allowance must be recognized if it is “more likely than not” that such deferred tax assets will not be realized. Appropriate consideration is given to all available evidence (both positive and negative) related to the realization of the deferred tax assets on a quarterly basis.
In conducting its regular quarterly evaluation, Hanmi made a determination to establish a valuation allowance at September 30, 2009 based primarily upon the existence of a three-year cumulative loss derived by combining the pre-tax income (loss) reported during the two most recent annual periods with management’s current projected results for the year ending 2009. This three-year cumulative loss position is primarily attributable to significant provisions for credit losses incurred during 2009. Although the Company’s current financial forecasts indicate that sufficient taxable income will be generated in the future to ultimately realize the existing deferred tax benefits, those forecasts were not considered to constitute sufficient positive evidence to overcome the observable negative evidence associated with the three-year cumulative loss position determined at September 30, 2009. Although the creation of the valuation allowance will increase tax expense for the quarter ended September 30, 2009 and similarly reduce tangible book value, it will not have an effect on Hanmi’s cash flows. The remaining net deferred tax assets of $2.5 million will be reversed by NOL carryover during the 4th quarter of 2009.
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: 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; the ability of Leading to complete the transactions contemplated by the Securities Purchase Agreement; 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 (“SBA”) 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 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; 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 Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and current and periodic reports filed with the Securities and Exchange Commission thereafter, which could cause actual results to differ from those projected. You should understand that it is not possible to predict or identify all such risks. Consequently, you should not consider such disclosures to be a

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complete discussion of all potential risks or uncertainties. We undertake no obligation to update such forward-looking statements except as required by law.
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 two loan production offices in Virginia and 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.
Contact
Hanmi Financial Corporation
     
BRIAN E. CHO
  DAVID YANG
Chief Financial Officer
  Investor Relations and Corporate Planning
(213) 368-3200
  (213) 637-4798

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HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Dollars in Thousands)
                                         
    September 30,     December 31,     %     September 30,     %  
    2009     2008     Change     2008     Change  
ASSETS                                        
Cash and Due from Banks
  $ 57,727     $ 83,933       (31.2 )%   $ 81,640       (29.3 )%
Interest-Bearing Deposits in Other Banks
    155,607       2,014       7,626.3 %     755       20,510.2 %
Federal Funds Sold and Securities Purchased Under Resale Agreements
          130,000       (100.0 )%     5,000       (100.0 )%
 
                             
 
                                       
Cash and Cash Equivalents
    213,334       215,947       (1.2 )%     87,395       144.1 %
 
                             
 
                                       
Investment Securities
    205,901       197,117       4.5 %     221,714       (7.1 )%
 
                                       
Loans:
                                       
Gross Loans, Net of Deferred Loan Fees
    2,977,504       3,362,111       (11.4 )%     3,345,049       (11.0 )%
Allowance for Loan Losses
    (124,768 )     (70,986 )     75.8 %     (63,948 )     95.1 %
 
                             
 
                                       
Loans Receivable, Net
    2,852,736       3,291,125       (13.3 )%     3,281,101       (13.1 )%
 
                             
 
                                       
Due from Customers on Acceptances
    1,859       4,295       (56.7 )%     7,382       (74.8 )%
Premises and Equipment, Net
    19,302       20,279       (4.8 )%     20,703       (6.8 )%
Accrued Interest Receivable
    11,389       12,347       (7.8 )%     13,801       (17.5 )%
Other Real Estate Owned, Net
    27,140       823       3,197.7 %     2,988       808.3 %
Deferred Income Taxes, Net
    2,464       29,456       (91.6 )%     18,682       (86.8 )%
Servicing Assets
    3,957       3,791       4.4 %     4,018       (1.5 )%
Other Intangible Assets, Net
    3,736       4,950       (24.5 )%     5,404       (30.9 )%
Investment in Federal Home Loan Bank Stock, at Cost
    30,697       30,697             30,424       0.9 %
Investment in Federal Reserve Bank Stock, at Cost
    10,053       10,228       (1.7 )%     11,733       (14.3 )%
Bank-Owned Life Insurance
    26,171       25,476       2.7 %     25,239       3.7 %
Income Taxes Receivable
    34,908       11,712       198.1 %     17,785       96.3 %
Other Assets
    13,843       17,573       (21.2 )%     17,622       (21.4 )%
 
                             
 
                                       
TOTAL ASSETS
  $ 3,457,490     $ 3,875,816       (10.8 )%   $ 3,765,991       (8.2 )%
 
                             
 
                                       
LIABILITIES AND STOCKHOLDERS’ EQUITY                                        
Liabilities:
                                       
Deposits:
                                       
Noninterest-Bearing
  $ 561,548     $ 536,944       4.6 %   $ 634,593       (11.5 )%
Interest-Bearing
    2,430,312       2,533,136       (4.1 )%     2,164,784       12.3 %
 
                             
 
                                       
Total Deposits
    2,991,860       3,070,080       (2.5 )%     2,799,377       6.9 %
 
                                       
Accrued Interest Payable
    19,730       18,539       6.4 %     11,344       73.9 %
Bank Acceptances Outstanding
    1,859       4,295       (56.7 )%     7,382       (74.8 )%
Federal Home Loan Bank Advances
    160,828       422,196       (61.9 )%     583,315       (72.4 )%
Other Borrowings
    1,496       787       90.1 %     1,657       (9.7 )%
Junior Subordinated Debentures
    82,406       82,406             82,406        
Accrued Expenses and Other Liabilities
    12,191       13,598       (10.3 )%     13,314       (8.4 )%
 
                             
 
                                       
Total Liabilities
    3,270,370       3,611,901       (9.5 )%     3,498,795       (6.5 )%
 
                                       
Stockholders’ Equity
    187,120       263,915       (29.1 )%     267,196       (30.0 )%
 
                             
 
                                       
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
  $ 3,457,490     $ 3,875,816       (10.8 )%   $ 3,765,991       (8.2 )%
 
                             

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HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(Dollars in Thousands, Except Per Share Data)
                                                                 
    Three Months Ended     Nine Months Ended  
    Sept. 30,     June 30,     %     Sept. 30,     %     Sept. 30,     Sept. 30,     %  
    2009     2009     Change     2008     Change     2009     2008     Change  
INTEREST AND DIVIDEND INCOME:
                                                               
Interest and Fees on Loans
  $ 42,705     $ 44,718       (4.5 )%   $ 56,134       (23.9 )%   $ 132,508     $ 172,637       (23.2 )%
Taxable Interest on Investment Securities
    1,541       1,370       12.5 %     2,049       (24.8 )%     4,261       7,743       (45.0 )%
Tax-Exempt Interest on Investment Securities
    607       621       (2.3 )%     650       (6.6 )%     1,871       2,071       (9.7 )%
Interest on Term Federal Funds Sold
    293       695       (57.8 )%                 1,688              
Dividends on Federal Reserve Bank Stock
    150       153       (2.0 )%     176       (14.8 )%     456       528       (13.6 )%
Interest on Federal Funds Sold and Securities Purchased Under Resale Agreements
    67       112       (40.2 )%     23       191.3 %     261       137       90.5 %
Interest on Interest-Bearing Deposits in Other Banks
    68       11       518.2 %     4       1,600.0 %     81       5       1,520.0 %
Dividends on Federal Home Loan Bank Stock
    64                   405       (84.2 )%     64       953       (93.3 )%
 
                                               
Total Interest and Dividend Income
    45,495       47,680       (4.6 )%     59,441       (23.5 )%     141,190       184,074       (23.3 )%
 
                                               
INTEREST EXPENSE:
                                                               
Interest on Deposits
    17,365       22,686       (23.5 )%     19,365       (10.3 )%     62,836       64,699       (2.9 )%
Interest on Federal Home Loan Bank Advances
    865       1,010       (14.4 )%     3,324       (74.0 )%     2,987       11,406       (73.8 )%
Interest on Junior Subordinated Debentures
    747       846       (11.7 )%     1,150       (35.0 )%     2,581       3,763       (31.4 )%
Interest on Other Borrowings
          2       (100.0 )%     5       (100.0 )%     2       344       (99.4 )%
 
                                               
Total Interest Expense
    18,977       24,544       (22.7 )%     23,844       (20.4 )%     68,406       80,212       (14.7 )%
 
                                               
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES
    26,518       23,136       14.6 %     35,597       (25.5 )%     72,784       103,862       (29.9 )%
Provision for Credit Losses
    49,500       23,934       106.8 %     13,176       275.7 %     119,387       50,226       137.7 %
 
                                               
NET INTEREST INCOME (LOSS) AFTER PROVISION FOR CREDIT LOSSES
    (22,982 )     (798 )     2,779.9 %     22,421       (202.5 )%     (46,603 )     53,636       (186.9 )%
 
                                               
NON-INTEREST INCOME:
                                                               
Service Charges on Deposit Accounts
    4,275       4,442       (3.8 )%     4,648       (8.0 )%     13,032       13,904       (6.3 )%
Insurance Commissions
    1,063       1,185       (10.3 )%     1,194       (11.0 )%     3,430       3,893       (11.9 )%
Remittance Fees
    511       545       (6.2 )%     499       2.4 %     1,579       1,543       2.3 %
Trade Finance Fees
    512       499       2.6 %     784       (34.7 )%     1,517       2,474       (38.7 )%
Other Service Charges and Fees
    489       467       4.7 %     433       12.9 %     1,439       1,852       (22.3 )%
Net Gain on Sales of Loans
    864                               866       765       13.2 %
Bank-Owned Life Insurance Income
    234       227       3.1 %     241       (2.9 )%     695       715       (2.8 )%
Gain on Sales of Investment Securities
          1       (100.0 )%                 1,277       618       106.6 %
Loss on Sales of Investment Securities
                      (483 )     (100.0 )%     (109 )     (483 )     (77.4 )%
Other-Than-Temporary Impairment Loss on Investment Securities
                      (2,410 )     (100.0 )%           (2,410 )     (100.0 )%
Other Operating Income (Loss)
    265       (695 )     (138.1 )%     422       (37.2 )%     (462 )     1,874       (124.7 )%
 
                                               
Total Non-Interest Income
    8,213       6,671       23.1 %     5,328       54.1 %     23,264       24,745       (6.0 )%
 
                                               
NON-INTEREST EXPENSE:
                                                               
Salaries and Employee Benefits
    8,648       8,508       1.6 %     10,782       (19.8 )%     24,659       33,363       (26.1 )%
Occupancy and Equipment
    2,834       2,788       1.6 %     2,786       1.7 %     8,506       8,360       1.7 %
Deposit Insurance Premiums and Regulatory Assessments
    2,001       3,929       (49.1 )%     780       156.5 %     7,420       2,098       253.7 %
Other Real Estate Owned Expense
    3,372       1,502       124.5 %     2       N/M       5,017       141       3,458.2 %
Data Processing
    1,608       1,547       3.9 %     1,498       7.3 %     4,691       4,730       (0.8 )%
Professional Fees
    1,239       890       39.2 %     647       91.5 %     2,745       2,627       4.5 %
Supplies and Communications
    603       599       0.7 %     681       (11.5 )%     1,772       2,008       (11.8 )%
Advertising and Promotion
    447       624       (28.4 )%     914       (51.1 )%     1,640       2,614       (37.3 )%
Loan-Related Expense
    192       1,217       (84.2 )%     170       12.9 %     1,590       569       179.4 %
Amortization of Other Intangible Assets
    379       406       (6.7 )%     478       (20.7 )%     1,214       1,504       (19.3 )%
Other Operating Expenses
    2,366       2,686       (11.9 )%     3,497       (32.3 )%     7,383       7,859       (6.1 )%
Impairment Loss on Goodwill
                                        107,393       (100.0 )%
 
                                               
Total Non-Interest Expense
    23,689       24,696       (4.1 )%     22,235       6.5 %     66,637       173,266       (61.5 )%
 
                                               
INCOME (LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES
    (38,458 )     (18,823 )     104.3 %     5,514       (797.5 )%     (89,976 )     (94,885 )     (5.2 )%
Provision (Benefit) for Income Taxes
    21,207       (9,288 )     (328.3 )%     1,166       1,718.8 %     (3,580 )     3,393       (205.5 )%
 
                                               
NET INCOME (LOSS)
  $ (59,665 )   $ (9,535 )     525.7 %   $ 4,348       (1,472.2 )%   $ (86,396 )   $ (98,278 )     (12.1 )%
 
                                               
 
                                                               
EARNINGS (LOSS) PER SHARE:
                                                               
Basic
  $ (1.26 )   $ (0.21 )     500.0 %   $ 0.09       (1,500.0 )%   $ (1.86 )   $ (2.14 )     (13.1 )%
Diluted
  $ (1.26 )   $ (0.21 )     500.0 %   $ 0.09       (1,500.0 )%   $ (1.86 )   $ (2.14 )     (13.1 )%
 
                                                               
WEIGHTED-AVERAGE SHARES OUTSTANDING:
                                                               
Basic
    47,413,141       45,924,767               45,881,549               46,415,225       45,869,069          
Diluted
    47,413,141       45,924,767               45,933,043               46,415,225       45,869,069          
 
                                                               
SHARES OUTSTANDING AT PERIOD-END
    51,201,390       46,130,967               45,905,549               51,201,390       45,905,549          

- 8 -


 

HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(UNAUDITED)
(Dollars in Thousands)
                                                                 
    Three Months Ended     Nine Months Ended  
    Sept. 30,     June 30,     %     Sept. 30,     %     Sept. 30,     Sept. 30,     %  
    2009     2009     Change     2008     Change     2009     2008     Change  
AVERAGE BALANCES:
                                                               
Average Gross Loans, Net of Deferred Loan Fees
  $ 3,078,104     $ 3,282,152       (6.2 )%   $ 3,341,250       (7.9 )%   $ 3,235,455     $ 3,320,559       (2.6 )%
Average Investment Securities
    209,021       179,129       16.7 %     244,027       (14.3 )%     190,243       294,130       (35.3 )%
Average Interest-Earning Assets
    3,552,698       3,796,039       (6.4 )%     3,630,755       (2.1 )%     3,718,837       3,659,255       1.6 %
Average Total Assets
    3,672,253       3,897,158       (5.8 )%     3,789,614       (3.1 )%     3,842,266       3,892,197       (1.3 )%
Average Deposits
    3,100,419       3,223,309       (3.8 )%     2,895,746       7.1 %     3,174,880       2,924,416       8.6 %
Average Borrowings
    297,455       386,477       (23.0 )%     590,401       (49.6 )%     374,139       588,267       (36.4 )%
Average Interest-Bearing Liabilities
    2,844,821       3,083,774       (7.7 )%     2,835,917       0.3 %     3,013,651       2,861,288       5.3 %
Average Stockholders’ Equity
    232,136       240,207       (3.4 )%     267,433       (13.2 )%     249,742       340,894       (26.7 )%
Average Tangible Equity
    228,169       235,850       (3.3 )%     261,751       (12.8 )%     245,377       263,870       (7.0 )%
 
                                                               
PERFORMANCE RATIOS (Annualized) :
                                                               
Return on Average Assets
    (6.45 )%     (0.98 )%             0.46 %             (3.01 )%     (3.37 )%        
Return on Average Stockholders’ Equity
    (101.97 )%     (15.92 )%             6.47 %             (46.25 )%     (38.51 )%        
Return on Average Tangible Equity
    (103.75 )%     (16.22 )%             6.61 %             (47.08 )%     (49.75 )%        
Efficiency Ratio
    68.21 %     82.85 %             54.33 %             69.38 %     134.73 %        
Net Interest Spread (1)
    2.47 %     1.88 %             3.21 %             2.08 %     3.02 %        
Net Interest Margin (1)
    3.00 %     2.48 %             3.94 %             2.65 %     3.83 %        
 
                                                               
ALLOWANCE FOR LOAN LOSSES:
                                                               
Balance at Beginning of Period
  $ 105,268     $ 104,943       0.3 %   $ 62,977       67.2 %   $ 70,986     $ 43,611       62.8 %
Provision Charged to Operating Expense
    49,375       23,922       106.4 %     12,802       285.7 %     119,067       47,685       149.7 %
Charge-Offs, Net of Recoveries
    (29,875 )     (23,597 )     26.6 %     (11,831 )     152.5 %     (65,285 )     (27,348 )     138.7 %
 
                                               
Balance at End of Period
  $ 124,768     $ 105,268       18.5 %   $ 63,948       95.1 %   $ 124,768     $ 63,948       95.1 %
 
                                               
 
                                                               
Allowance for Loan Losses to Total Gross Loans
    4.19 %     3.33 %             1.91 %             4.19 %     1.91 %        
Allowance for Loan Losses to Total Non-Performing Loans
    71.53 %     62.92 %             57.16 %             71.53 %     57.16 %        
 
                                                               
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS:
                                                               
Balance at Beginning of Period
  $ 4,291     $ 4,279       0.3 %   $ 3,932       9.1 %   $ 4,096     $ 1,765       132.1 %
Provision Charged to Operating Expense
    125       12       941.7 %     374       151.8 %     320       2,541       (87.4 )%
 
                                               
Balance at End of Period
  $ 4,416     $ 4,291       2.9 %   $ 4,306       2.6 %   $ 4,416     $ 4,306       2.6 %
 
                                               
 
(1)   Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.

- 9 -


 

HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED) (Continued)
(Dollars in Thousands)
                                         
    Sept. 30,     Dec. 31,     %     Sept. 30,     %  
    2009     2008     Change     2008     Change  
NON-PERFORMING ASSETS:
                                       
Non-Accrual Loans
  $ 174,363     $ 120,823       44.3 %   $ 111,335       56.6 %
Loans 90 Days or More Past Due and Still Accruing
    64       1,075       (94.0 )%     535       (88.0 )%
 
                             
Total Non-Performing Loans
    174,427       121,898       43.1 %     111,870       55.9 %
Other Real Estate Owned, Net
    27,140       823       3,197.7 %     2,988       808.3 %
 
                             
Total Non-Performing Assets
  $ 201,567     $ 122,721       64.2 %   $ 114,858       75.5 %
 
                             
 
                                       
Total Non-Performing Loans/Total Gross Loans
    5.85 %     3.62 %             3.34 %        
Total Non-Performing Assets/Total Assets
    5.83 %     3.17 %             3.05 %        
Total Non-Performing Assets/Allowance for Loan Losses
    161.6 %     172.9 %             179.6 %        
 
                                       
DELINQUENT LOANS
  $ 151,047     $ 128,469       17.6 %   $ 102,917       46.8 %
 
                             
 
                                       
Delinquent Loans/Total Gross Loans
    5.07 %     3.82 %             3.08 %        
 
                                       
LOAN PORTFOLIO:
                                       
Real Estate Loans
  $ 1,086,735     $ 1,180,114       (7.9 )%   $ 1,166,436       (6.8 )%
Commercial and Industrial Loans
    1,824,042       2,099,732       (13.1 )%     2,096,222       (13.0 )%
Consumer Loans
    68,537       83,525       (17.9 )%     84,031       (18.4 )%
 
                             
Total Gross Loans
    2,979,314       3,363,371       (11.4 )%     3,346,689       (11.0 )%
Deferred Loan Fees
    (1,810 )     (1,260 )     43.7 %     (1,640 )     10.4 %
 
                             
Gross Loans, Net of Deferred Loan Fees
    2,977,504       3,362,111       (11.4 )%     3,345,049       (11.0 )%
Allowance for Loan Losses
    (124,768 )     (70,986 )     75.8 %     (63,948 )     95.1 %
 
                             
Loans Receivable, Net
  $ 2,852,736     $ 3,291,125       (13.3 )%   $ 3,281,101       (13.1 )%
 
                             
 
                                       
LOAN MIX:
                                       
Real Estate Loans
    36.5 %     35.1 %             34.9 %        
Commercial and Industrial Loans
    61.2 %     62.4 %             62.6 %        
Consumer Loans
    2.3 %     2.5 %             2.5 %        
 
                                 
Total Gross Loans
    100.0 %     100.0 %             100.0 %        
 
                                 
 
                                       
DEPOSIT PORTFOLIO:
                                       
Demand — Noninterest-Bearing
  $ 561,548     $ 536,944       4.6 %   $ 634,593       (11.5 )%
Savings
    98,019       81,869       19.7 %     86,157       13.8 %
Money Market Checking and NOW Accounts
    723,585       370,401       95.4 %     597,065       21.2 %
Time Deposits of $100,000 or More
    845,318       849,800       (0.5 )%     863,034       (2.1 )%
Other Time Deposits
    763,390       1,231,066       (38.0 )%     618,528       23.4 %
 
                             
Total Deposits
  $ 2,991,860     $ 3,070,080       (2.5 )%   $ 2,799,377       6.9 %
 
                             
 
                                       
DEPOSIT MIX:
                                       
Demand — Noninterest-Bearing
    18.8 %     17.5 %             22.7 %        
Savings
    3.3 %     2.7 %             3.1 %        
Money Market Checking and NOW Accounts
    24.2 %     12.1 %             21.3 %        
Time Deposits of $100,000 or More
    28.3 %     27.7 %             30.8 %        
Other Time Deposits
    25.4 %     40.0 %             22.1 %        
 
                                 
Total Deposits
    100.0 %     100.0 %             100.0 %        
 
                                 
 
                                       
CAPITAL RATIOS (Bank Only) :
                                       
Total Risk-Based
    9.69 %     10.71 %             10.84 %        
Tier 1 Risk-Based
    8.40 %     9.44 %             9.57 %        
Tier 1 Leverage
    7.05 %     8.85 %             8.94 %        

- 10 -


 

HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(UNAUDITED)
(Dollars in Thousands)
                                                                                                                         
    Three Months Ended     Nine Months Ended  
    September 30, 2009     June 30, 2009     September 30, 2008     September 30, 2009     September 30, 2008  
            Interest     Average             Interest     Average             Interest     Average             Interest     Average             Interest     Average  
    Average     Income/     Yield/     Average     Income/     Yield/     Average     Income/     Yield/     Average     Income/     Yield/     Average     Income/     Yield/  
    Balance     Expense     Rate     Balance     Expense     Rate     Balance     Expense     Rate     Balance     Expense     Rate     Balance     Expense     Rate  
INTEREST-EARNING ASSETS
                                                                                                                       
 
                                                                                                                       
Loans:
                                                                                                                       
Real Estate Loans:
                                                                                                                       
Commercial Property
  $ 887,028     $ 12,051       5.39 %   $ 914,802     $ 13,041       5.72 %   $ 867,684     $ 14,604       6.70 %   $ 905,386     $ 38,029       5.62 %   $ 821,097     $ 42,894       6.98 %
Construction
    138,340       1,464       4.20 %     178,456       1,594       3.58 %     199,969       2,539       5.05 %     165,455       4,605       3.72 %     208,519       8,081       5.18 %
Residential Property
    83,387       1,050       5.00 %     86,913       1,119       5.16 %     90,739       1,209       5.30 %     86,904       3,332       5.13 %     90,069       3,584       5.32 %
 
                                                                                         
Total Real Estate Loans
    1,108,755       14,565       5.21 %     1,180,171       15,754       5.35 %     1,158,392       18,352       6.30 %     1,157,745       45,966       5.31 %     1,119,685       54,559       6.51 %
Commercial and Industrial Loans
    1,897,321       26,863       5.62 %     2,025,414       27,774       5.50 %     2,099,708       36,128       6.85 %     2,001,546       82,874       5.54 %     2,114,974       112,416       7.10 %
Consumer Loans
    73,670       1,084       5.84 %     77,989       1,108       5.70 %     85,021       1,495       7.00 %     77,606       3,345       5.76 %     87,920       4,789       7.28 %
 
                                                                                         
Total Gross Loans
    3,079,746       42,512       5.48 %     3,283,574       44,636       5.45 %     3,343,121       55,975       6.66 %     3,236,897       132,185       5.46 %     3,322,579       171,764       6.91 %
Prepayment Penalty Income
          193                   82                   159                   323                   873        
Unearned Income on Loans, Net of Costs
    (1,642 )                 (1,422 )                 (1,871 )                 (1,442 )                 (2,020 )            
 
                                                                                         
Gross Loans, Net
    3,078,104       42,705       5.50 %     3,282,152       44,718       5.46 %     3,341,250       56,134       6.68 %     3,235,455       132,508       5.48 %     3,320,559       172,637       6.94 %
 
                                                                                         
 
                                                                                                                       
Investment Securities:
                                                                                                                       
Municipal Bonds(1)
    58,179       933       6.41 %     59,222       956       6.46 %     60,979       1,000       6.56 %     58,760       2,878       6.53 %     65,329       3,186       6.50 %
U.S. Government Agency Securities
    37,969       431       4.54 %     13,177       144       4.37 %     46,777       483       4.13 %     20,345       671       4.40 %     80,120       2,612       4.35 %
Mortgage-Backed Securities
    82,429       807       3.92 %     74,939       880       4.70 %     83,460       994       4.76 %     77,720       2,582       4.43 %     90,652       3,246       4.77 %
Collateralized Mortgage Obligations
    17,066       173       4.05 %     20,713       215       4.15 %     41,266       441       4.27 %     23,742       736       4.13 %     45,853       1,462       4.25 %
Corporate Bonds
    401             0.00 %     233       22       37.77 %     7,751       89       4.59 %     265             0.00 %     8,344       287       4.59 %
Other Securities
    12,977       130       4.01 %     10,845       109       4.02 %     3,794       42       4.43 %     9,411       272       3.85 %     3,832       136       4.73 %
 
                                                                                         
Total Investment Securities (1)
    209,021       2,474       4.73 %     179,129       2,326       5.19 %     244,027       3,049       5.00 %     190,243       7,139       5.00 %     294,130       10,929       4.95 %
 
                                                                                         
 
                                                                                                                       
Other Interest-Earning Assets:
                                                                                                                       
Equity Securities
    41,741       214       2.05 %     41,532       153       1.47 %     39,929       581       5.82 %     41,667       520       1.66 %     37,160       1,481       5.31 %
Federal Funds Sold and Securities Purchased Under Resale Agreements
    56,568       67       0.47 %     135,362       112       0.33 %     4,797       23       1.92 %     95,365       261       0.36 %     7,096       137       2.57 %
Term Federal Funds Sold
    90,239       293       1.30 %     147,692       695       1.88 %                       125,249       1,688       1.80 %                  
Interest-Earning Deposits
    77,025       68       0.35 %     10,172       11       0.43 %     752       4       2.13 %     30,858       81       0.35 %     310       5       2.15 %
 
                                                                                         
Total Other Interest-Earning Assets
    265,573       642       0.97 %     334,758       971       1.16 %     45,478       608       5.35 %     293,139       2,550       1.16 %     44,566       1,623       4.86 %
 
                                                                                         
 
                                                                                                                       
TOTAL INTEREST-EARNING ASSETS (1)
  $ 3,552,698     $ 45,821       5.12 %   $ 3,796,039     $ 48,015       5.07 %   $ 3,630,755     $ 59,791       6.55 %   $ 3,718,837     $ 142,197       5.11 %   $ 3,659,255     $ 185,189       6.76 %
 
                                                                                         
 
                                                                                                                       
INTEREST-BEARING LIABILITIES
                                                                                                                       
 
                                                                                                                       
Interest-Bearing Deposits:
                                                                                                                       
Savings
  $ 93,404     $ 585       2.48 %   $ 84,588     $ 527       2.50 %   $ 91,465     $ 533       2.32 %   $ 86,715     $ 1,617       2.49 %   $ 91,910     $ 1,587       2.31 %
Money Market Checking and NOW Accounts
    629,124       2,998       1.89 %     319,319       1,426       1.79 %     693,718       5,579       3.20 %     431,646       6,278       1.94 %     656,625       15,946       3.24 %
Time Deposits of $100,000 or More
    983,341       7,447       3.00 %     1,313,683       12,108       3.70 %     973,752       8,709       3.56 %     1,124,876       29,877       3.55 %     1,143,975       35,436       4.14 %
Other Time Deposits
    841,497       6,335       2.99 %     979,707       8,625       3.53 %     486,581       4,544       3.72 %     996,275       25,064       3.36 %     380,511       11,730       4.12 %
 
                                                                                         
Total Interest-Bearing Deposits
    2,547,366       17,365       2.70 %     2,697,297       22,686       3.37 %     2,245,516       19,365       3.43 %     2,639,512       62,836       3.18 %     2,273,021       64,699       3.80 %
 
                                                                                         
 
                                                                                                                       
Borrowings:
                                                                                                                       
FHLB Advances
    213,583       865       1.61 %     302,220       1,010       1.34 %     506,981       3,324       2.61 %     290,142       2,987       1.38 %     492,434       11,406       3.09 %
Other Borrowings
    1,466             0.00 %     1,851       2       0.43 %     1,014       5       1.96 %     1,591       2       0.17 %     13,427       344       3.42 %
Junior Subordinated Debentures
    82,406       747       3.60 %     82,406       846       4.12 %     82,406       1,150       5.55 %     82,406       2,581       4.19 %     82,406       3,763       6.10 %
 
                                                                                         
Total Borrowings
    297,455       1,612       2.15 %     386,477       1,858       1.93 %     590,401       4,479       3.02 %     374,139       5,570       1.99 %     588,267       15,513       3.52 %
 
                                                                                         
 
                                                                                                                       
TOTAL INTEREST-BEARING LIABILITIES
  $ 2,844,821     $ 18,977       2.65 %   $ 3,083,774     $ 24,544       3.19 %   $ 2,835,917     $ 23,844       3.34 %   $ 3,013,651     $ 68,406       3.03 %   $ 2,861,288     $ 80,212       3.74 %
 
                                                                                         
 
                                                                                                                       
NET INTEREST INCOME (1)
          $ 26,844                     $ 23,471                     $ 35,947                     $ 73,791                     $ 104,977          
 
                                                                                                             
 
                                                                                                                       
NET INTEREST SPREAD (1)
                    2.47 %                     1.88 %                     3.21 %                     2.08 %                     3.02 %
 
                                                                                                             
 
                                                                                                                       
NET INTEREST MARGIN (1)
                    3.00 %                     2.48 %                     3.94 %                     2.65 %                     3.79 %
 
                                                                                                             
 
(1)   Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.

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