Exhibit 99.1
Hanmi Financial Corporation Reports
First Quarter 2010 Financial Results
LOS ANGELES – April 29, 2010 – Hanmi Financial Corporation (NASDAQ: HAFC), the holding company
for Hanmi Bank, today reported a first quarter net loss of $49.5 million, or $0.97 per share,
primarily driven by $58.0 million in credit loss provisions, compared to a net loss of $17.2
million, or $0.37 per share, in the first quarter a year ago when it took a $46.0 million
provision.
“Although we continue to face challenging economic conditions, we are making progress preserving
liquidity, growing core deposits, building reserves for loan losses, and expanding our net interest
margin,” said Jay S. Yoo, President and Chief Executive Officer. “As a result of continuing
problems with our loan portfolio, we once again set aside a substantial provision for loan losses.
The impact of the elevated levels of provision for loan losses, the change in deferred tax asset
valuation and rising costs associated with loan and OREO workout expenses are the primary
contributors to our current quarter loss.
“We are also making progress on achieving full compliance with previously announced regulatory
requirements by strengthening our capital position, improving asset quality, and enhancing
liquidity,” Yoo continued. “Our progress in the first quarter of the year is noteworthy, with a
strong liquidity position, reduced loan and securities portfolios, and solid interest from
investors to bring in fresh capital.”
First Quarter 2010 Highlights (as of and for the quarter ended March 31, 2010 compared to March 31,
2009)
| |
• |
|
The allowance for loan losses increased 69% to $177.8 million, or 6.63% of
total loans. |
| |
| |
• |
|
Core deposits, which exclude brokered deposits and jumbo CDs, increased by 9.8%
or $137.7 million to $1.54 billion, reflecting the continued strong support of the local
community. Non-interest bearing demand deposits grew 6% year over year and 3% in the
quarter to $575.0 million, and now account for 22% of total deposits. |
| |
| |
• |
|
Continuing successful deleveraging of the balance sheet resulted in assets
declining 22% to $3.02 billion, with gross loans down 19%, securities down 31%, and
Federal Home Loan Bank advances down 51%. |
| |
| |
• |
|
Net interest margin expanded 23 basis points in the quarter and 119 basis
points year over year to 3.69%, reflecting a 38 basis point drop in the quarter and 140
basis points year over year in the total cost of funds. |
Capital Adequacy
“We continue to work with a sense of urgency toward the goal of adding capital in order to
improve our capital position,” said Yoo. “We are encouraged by the recent influx of new capital
into the local market, and hope that investors will continue to favor our financial sector. Our
goal is to raise enough new equity to strengthen our capital ratios and provide us with the capital
strength to emerge from these challenging economic times.”
At March 31, 2010, the Bank’s Tier 1 Leverage was 5.68%; Tier 1 Risk-Based Capital was 6.49% and
Total Risk-Based Capital Ratio was 7.81%. The ratio of tangible shareholders’ equity to total
tangible assets for the first quarter was 5.89% compared to 7.13% at December 31, 2009.
1
Asset Quality
“With more than 80% of our loans in Southern California, our business is greatly influenced by the
local economy, which has been quite difficult for the people and businesses of Los Angeles for the
past two years. While the Los Angeles County Economic Development Corporation forecasts gradual
economic improvement during 2010 and 2011 in its February report, the recovery has yet to provide
relief to the commercial and residential real estate markets we serve,” said Yoo.
“Consequently, we continue to see adverse results in our loan portfolio.”
Non-performing loans (NPLs) totaled $262.2 million, or 9.77% of gross loans at March 31, 2010,
compared with $219.1 million, or 7.77% of gross loans at December 31, 2009, and $156.3 million or
4.71% of gross loans at March 31, 2009. Of the total non-performing loans $94.8 million or 36.14%
were current on payments. The majority of these non-performing loans are supported by collateral.
As of March 31, 2010, the bank has recorded an impairment reserve of $27.2 million on these
non-performing loans. Of the increase in first quarter non-performing loans, 75% is related to a
$32.6 million bridge loan secured by 29 acres of vacant land in Northern California that moved into
the non-performing category. “We are currently talking with interested parties for the future sale
of this property without a significant loss,” Yoo noted. The following table shows nonperforming
loans by loan category:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
% of Total |
|
|
|
|
|
% of Total |
|
|
|
|
|
% of Total |
| (‘000) |
|
3/31/2010 |
|
NPL |
|
12/31/2009 |
|
NPL |
|
3/31/2009 |
|
NPL |
| |
Real Estate Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Property |
|
|
95,388 |
|
|
|
36.4 |
% |
|
|
60,117 |
|
|
|
27.4 |
% |
|
|
15,576 |
|
|
|
10.0 |
% |
Construction |
|
|
7,179 |
|
|
|
2.7 |
% |
|
|
12,541 |
|
|
|
5.7 |
% |
|
|
39,198 |
|
|
|
25.1 |
% |
Residential Property |
|
|
5,457 |
|
|
|
2.1 |
% |
|
|
5,979 |
|
|
|
2.7 |
% |
|
|
1,616 |
|
|
|
1.0 |
% |
Commercial & Industrial Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner Occupied Property |
|
|
115,384 |
|
|
|
44.0 |
% |
|
|
97,008 |
|
|
|
44.3 |
% |
|
|
65,934 |
|
|
|
42.2 |
% |
Other Commercial & Industrial |
|
|
38,043 |
|
|
|
14.5 |
% |
|
|
42,732 |
|
|
|
19.5 |
% |
|
|
33,076 |
|
|
|
21.2 |
% |
Consumer Loans |
|
|
782 |
|
|
|
0.3 |
% |
|
|
689 |
|
|
|
0.3 |
% |
|
|
930 |
|
|
|
0.6 |
% |
| |
TOTAL NPLs |
|
|
262,232 |
|
|
|
100.0 |
% |
|
|
219,067 |
|
|
|
100.0 |
% |
|
|
156,330 |
|
|
|
100.0 |
% |
| |
Other real estate owned (OREO) has declined in the past two quarters and now stands at $22.4
million at March 31, 2010, down from $26.3 million at December 31, 2009 and up from $1.2 million a
year ago. During the first quarter, $3.9 million of OREO was sold and $4.4 million of nonaccrual
loans were foreclosed. “We have been aggressive in selling loans prior to foreclosure,” said Yoo.
Total non-performing assets were $284.6 million, or 9.49% of total assets at March 31, 2010,
compared to $245.4 million, or 7.76% of total assets at December 31, 2009, and $157.5 million, or
4.06% of total assets at March 31, 2009.
Delinquent loans (DLs) on accrual status were $68.6 million or 29.1% at March 31, 2010, up from
$41.2 million or 22.1% at December 31, 2009, and $48.0 or 29.2% at March 31, 2009. The following
table shows DLs on accrual status by loan category:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
% of Total |
|
|
|
|
|
% of Total |
|
|
|
|
|
% of Total |
| (‘000) |
|
3/31/2010 |
|
Delinquency |
|
12/31/2009 |
|
Delinquency |
|
3/31/2009 |
|
Delinquency |
| |
Real Estate Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Property |
|
|
17,455 |
|
|
|
7.4 |
% |
|
|
3,650 |
|
|
|
2.0 |
% |
|
|
9,518 |
|
|
|
5.8 |
% |
Residential Property |
|
|
284 |
|
|
|
0.1 |
% |
|
|
864 |
|
|
|
0.5 |
% |
|
|
115 |
|
|
|
0.1 |
% |
Commercial & Industrial
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner Occupied Property |
|
|
37,348 |
|
|
|
15.8 |
% |
|
|
23,828 |
|
|
|
12.8 |
% |
|
|
21,995 |
|
|
|
13.4 |
% |
Other Commercial & Industrial |
|
|
13,119 |
|
|
|
5.6 |
% |
|
|
11,851 |
|
|
|
6.4 |
% |
|
|
15,756 |
|
|
|
9.6 |
% |
Consumer Loans |
|
|
433 |
|
|
|
0.2 |
% |
|
|
958 |
|
|
|
0.5 |
% |
|
|
661 |
|
|
|
0.4 |
% |
| |
Total DLs (Accrual Status) |
|
|
68,640 |
|
|
|
29.1 |
% |
|
|
41,151 |
|
|
|
22.1 |
% |
|
|
48,046 |
|
|
|
29.2 |
% |
| |
2
At March 31, 2010, the allowance for loan losses increased 22.64% to $177.8 million, or 6.63%
of gross loans and 67.81% of NPLs, compared to $145.0 million, or 5.14% of gross loans and 66.19%
of NPLs at December 31, 2009, and $104.9 million, or 3.16% of gross loans and 67.13% of NPLS at
March 31, 2009. First-quarter charge-offs, net of recoveries, were $26.4 million compared to $57.3
million in the prior quarter and $11.8 million in the first quarter of 2009.
The increase in the allowance for loan losses was mainly due to an increase in quantitative
reserves to $120.0 million from $90.1 million at December 31, 2009. The impaired loan reserves
totaled $27.2 million, up from $23.1 million at December 31, 2009 and the qualitative reserve
portion of the allowance slightly decreased to $30.5 million from $31.6 million at the end of the
fourth quarter.
Balance Sheet
Reflecting the Bank’s ongoing program to de-leverage its balance sheet, total assets decreased to
$3.02 billion, at March 31, 2010, a 5% decline from $3.16 billion at December 31, 2009, and a 22%
decline from $3.88 billion at March 31, 2009. Gross loans, net of deferred loan fees, were $2.68
billion as of March 31, 2010, down 5% from $2.82 billion at December 31, 2009, and down 19% from
$3.32 billion at March 31, 2009.
“Our depositors have been supportive of the bank during these difficult times and we appreciate
their loyalty in helping us to continue to build core deposits,” stated Yoo. “We are continuing to
reduce our reliance on brokered deposits as we continue to de-leverage our balance sheet.” Total
deposits decreased 17% year over year and 4% during the quarter with jumbo CDs and other time
deposits down 14% and 60%, respectively, compared to a year ago. Total deposits were $2.65 billion
at March 31, 2010, compared to $2.75 billion at December 31, 2009, and $3.20 billion at March 31,
2009. Demand deposits increased 3.4%, to $575.0 million at the end of the first quarter from $556.3
million at December 31, 2009. “We continue to reduce our reliance on wholesale funding, reflecting
a decrease in brokered deposits from a year ago. FHLB advances are down 51% from a year ago to
$153.9 million.”
“We continue to maintain strong liquidity in order to meet our customers’ needs. We have a sound
mix of funding sources, including core deposits, which are increasing, sale of long-term assets
such as non-performing loans, and our contingent borrowing lines with the Federal Home Loan Bank
and Federal Reserve Bank,” said Brian Cho, Chief Financial Officer.
Results of Operations
Net interest income before provision for credit losses totaled $27.3 million, a 4% decrease from
$28.4 million in the preceding quarter and an 18% increase from the $23.1 million in first quarter
a year ago, with lower cost of funds offsetting lower yields on interest earning assets.
The average yield on the loan portfolio was 5.38% in the first quarter of 2010, a 16 basis point
decrease from the prior quarter, reflecting the increase of nonaccrual loans. The cost of average
interest-bearing deposits in the first quarter was 1.87%, down 39 basis points from the fourth
quarter of 2009. As a result, Hanmi’s net interest margin improved 23 basis points to 3.69% up from
3.46% percent in the fourth quarter of 2009.
The provision for credit losses in the first quarter of 2010 was $58.0 million, compared to $77.0
million in the prior quarter and $46.0 million in the first quarter a year ago. The provision in
all periods was well above the rate of net charge-offs,
3
taken in the respective periods. The provision for loan losses increased primarily due to the
increase of historical loss ratios used in ALLL migration analysis which was the result of the
elevated level of net charge-offs in recent quarters.
Total non-interest income in the first quarter of 2010 was $7.0 million compared to $7.8 million in
the fourth quarter of 2009 and $8.5 million in the first quarter of 2009. Lower gains from asset
sales and reduced fee income caused by the slow economy contributed to the decline in non-interest
income. In addition, gains from sales of SBA loans were deferred to the second quarter due to
changes in the accounting rules for such sales.
In the first quarter of 2010, net gain on sales of investment securities decreased by $1.1 million
to $105,000 from $1.2 million in the first quarter a year ago. In the fourth quarter of 2009, $54.6
million of investment securities were sold, generating solid profits in the quarter, whereas in the
first quarter of 2010, only $3.1 million in securities were sold.
First quarter service charges on deposit accounts decreased to $3.7 million, a 14% decline from
$4.3 million for the first quarter of 2009, reflecting lower overdraft charges and reduced fees
from account analysis. Insurance commission increased 8% to $1.3 million in the first quarter of
2010 from $1.2 million in the first quarter a year ago as the marketing campaign for insurance
products met with success throughout the branch banking network. Remittance fees and loan-related
servicing fees both dropped slightly in the first quarter from a year ago. Fees generated from
international trade finance decreased 31% to $351,000 in the first quarter of 2010 from $506,000 in
the first quarter a year ago, reflecting the decrease of import and export letters of credit.
Total non-interest expense in the first quarter of 2010 was $26.2 million, up from $22.7 million in
the fourth quarter of 2009 and $18.4 million in the first quarter a year ago. Continuing high
levels of expenditures for OREO management and credit collections expenses were the primary drivers
of higher operating expense, coupled with higher FDIC insurance premiums . “We completed the
foreclosure of an 88-unit condominium project in Northern California last year and booked a $4
million write down on the property during the first quarter to bring the carrying value to $22
million,” Cho noted. “These added expenses is not typical for our operations and was the major
component of the $5.7 million OREO expense in the first quarter of 2010 ” In the fourth quarter of
2009, OREO expenses was $873,000 and it was just $143,000 in the first quarter a year ago.
About Hanmi Financial Corporation
Headquartered in Los Angeles, Hanmi Bank, a wholly-owned subsidiary of Hanmi Financial Corporation,
provides services to the multi-ethnic communities of California, with 27 full-service offices in
Los Angeles, Orange, San Bernardino, San Francisco, Santa Clara and San Diego counties, and a loan
production office in Washington State. Hanmi Bank specializes in commercial, SBA and trade finance
lending, and is a recognized community leader. Hanmi Bank’s mission is to provide a full range of
quality products and premier services to its customers and to maximize shareholder value.
Additional information is available at www.hanmi.com.
Forward-Looking Statements
This 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
4
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; 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, 2009 and current and periodic
reports filed with the Securities and Exchange Commission 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.
Sources: http://www.laedc.org/reports/Forecast-2010-02.pdf
Contact
Hanmi Financial Corporation
| |
|
|
|
BRIAN E. CHO
|
|
DAVID YANG |
Chief Financial Officer
|
|
Investor Relations and Corporate Planning |
(213) 368-3200
|
|
(213) 637-4798 |
5
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Dollars in Thousands)
| |
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
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|
|
|
| |
|
March 31, |
|
|
December 31, |
|
|
% |
|
|
March 31, |
|
|
% |
|
| |
|
2010 |
|
|
2009 |
|
|
Change |
|
|
2009 |
|
|
Change |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Due from Banks |
|
$ |
59,677 |
|
|
$ |
55,263 |
|
|
|
8.0 |
% |
|
$ |
62,965 |
|
|
|
(5.2 |
)% |
Interest-Bearing Deposits in Other Banks |
|
|
139,540 |
|
|
|
98,847 |
|
|
|
41.2 |
% |
|
|
168,035 |
|
|
|
(17.0 |
)% |
Federal Funds Sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
90,000 |
|
|
|
(100.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents |
|
|
199,217 |
|
|
|
154,110 |
|
|
|
29.3 |
% |
|
|
321,000 |
|
|
|
(37.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Securities |
|
|
114,231 |
|
|
|
133,289 |
|
|
|
(14.3 |
)% |
|
|
164,362 |
|
|
|
(30.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Loans, Net of Deferred Loan Fees |
|
|
2,682,890 |
|
|
|
2,819,060 |
|
|
|
(4.8 |
)% |
|
|
3,318,382 |
|
|
|
(19.2 |
)% |
Allowance for Loan Losses |
|
|
(177,820 |
) |
|
|
(144,996 |
) |
|
|
22.6 |
% |
|
|
(104,943 |
) |
|
|
69.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Receivable, Net |
|
|
2,505,070 |
|
|
|
2,674,064 |
|
|
|
(6.3 |
)% |
|
|
3,213,439 |
|
|
|
(22.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due from Customers on Acceptances |
|
|
1,914 |
|
|
|
994 |
|
|
|
92.6 |
% |
|
|
2,176 |
|
|
|
(12.0 |
)% |
Premises and Equipment, Net |
|
|
18,236 |
|
|
|
18,657 |
|
|
|
(2.3 |
)% |
|
|
20,269 |
|
|
|
(10.0 |
)% |
Accrued Interest Receivable |
|
|
9,026 |
|
|
|
9,492 |
|
|
|
(4.9 |
)% |
|
|
11,702 |
|
|
|
(22.9 |
)% |
Other Real Estate Owned, Net |
|
|
22,399 |
|
|
|
26,306 |
|
|
|
(14.9 |
)% |
|
|
1,206 |
|
|
|
1,757.3 |
% |
Deferred Income Taxes, Net |
|
|
— |
|
|
|
3,608 |
|
|
|
(100.0 |
)% |
|
|
28,599 |
|
|
|
(100.0 |
)% |
Servicing Assets |
|
|
3,590 |
|
|
|
3,842 |
|
|
|
(6.6 |
)% |
|
|
3,630 |
|
|
|
(1.1 |
)% |
Other Intangible Assets, Net |
|
|
3,055 |
|
|
|
3,382 |
|
|
|
(9.7 |
)% |
|
|
4,521 |
|
|
|
(32.4 |
)% |
Investment in Federal Home Loan Bank Stock, at Cost |
|
|
30,697 |
|
|
|
30,697 |
|
|
|
— |
|
|
|
30,697 |
|
|
|
— |
|
Investment in Federal Reserve Bank Stock, at Cost |
|
|
7,878 |
|
|
|
7,878 |
|
|
|
— |
|
|
|
10,228 |
|
|
|
(23.0 |
)% |
Bank-Owned Life Insurance |
|
|
26,639 |
|
|
|
26,408 |
|
|
|
0.9 |
% |
|
|
25,710 |
|
|
|
3.6 |
% |
Income Taxes Receivable |
|
|
59,680 |
|
|
|
56,554 |
|
|
|
5.5 |
% |
|
|
27,211 |
|
|
|
119.3 |
% |
Other Assets |
|
|
16,669 |
|
|
|
13,425 |
|
|
|
24.2 |
% |
|
|
16,145 |
|
|
|
3.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
3,018,301 |
|
|
$ |
3,162,706 |
|
|
|
(4.6 |
)% |
|
$ |
3,880,895 |
|
|
|
(22.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-Bearing |
|
$ |
575,015 |
|
|
$ |
556,306 |
|
|
|
3.4 |
% |
|
$ |
542,521 |
|
|
|
6.0 |
% |
Interest-Bearing |
|
|
2,075,265 |
|
|
|
2,193,021 |
|
|
|
(5.4 |
)% |
|
|
2,653,588 |
|
|
|
(21.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Deposits |
|
|
2,650,280 |
|
|
|
2,749,327 |
|
|
|
(3.6 |
)% |
|
|
3,196,109 |
|
|
|
(17.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued Interest Payable |
|
|
13,146 |
|
|
|
12,606 |
|
|
|
4.3 |
% |
|
|
27,234 |
|
|
|
(51.7 |
)% |
Bank Acceptances Outstanding |
|
|
1,914 |
|
|
|
994 |
|
|
|
92.6 |
% |
|
|
2,176 |
|
|
|
(12.0 |
)% |
Federal Home Loan Bank Advances |
|
|
153,898 |
|
|
|
153,978 |
|
|
|
(0.1 |
)% |
|
|
311,075 |
|
|
|
(50.5 |
)% |
Other Borrowings |
|
|
4,428 |
|
|
|
1,747 |
|
|
|
153.5 |
% |
|
|
1,761 |
|
|
|
151.4 |
% |
Junior Subordinated Debentures |
|
|
82,406 |
|
|
|
82,406 |
|
|
|
— |
|
|
|
82,406 |
|
|
|
— |
|
Accrued Expenses and Other Liabilities |
|
|
11,207 |
|
|
|
11,904 |
|
|
|
(5.9 |
)% |
|
|
11,891 |
|
|
|
(5.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
2,917,279 |
|
|
|
3,012,962 |
|
|
|
(3.2 |
)% |
|
|
3,632,652 |
|
|
|
(19.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity |
|
|
101,022 |
|
|
|
149,744 |
|
|
|
(32.5 |
)% |
|
|
248,243 |
|
|
|
(59.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
3,018,301 |
|
|
$ |
3,162,706 |
|
|
|
(4.6 |
)% |
|
$ |
3,880,895 |
|
|
|
(22.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(Dollars in Thousands, Except Per Share Data)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| |
|
March 31, |
|
|
Dec. 31, |
|
|
% |
|
|
March 31, |
|
|
% |
|
| |
|
2010 |
|
|
2009 |
|
|
Change |
|
|
2009 |
|
|
Change |
|
INTEREST AND DIVIDEND INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and Fees on Loans |
|
$ |
36,695 |
|
|
$ |
40,810 |
|
|
|
(10.1 |
)% |
|
$ |
45,085 |
|
|
|
(18.6 |
)% |
Taxable Interest on Investment Securities |
|
|
1,070 |
|
|
|
1,414 |
|
|
|
(24.3 |
)% |
|
|
1,350 |
|
|
|
(20.7 |
)% |
Tax-Exempt Interest on Investment Securities |
|
|
77 |
|
|
|
432 |
|
|
|
(82.2 |
)% |
|
|
643 |
|
|
|
(88.0 |
)% |
Interest on Term Federal Funds Sold |
|
|
— |
|
|
|
30 |
|
|
|
(100.0 |
)% |
|
|
700 |
|
|
|
(100.0 |
)% |
Dividends on Federal Reserve Bank Stock |
|
|
118 |
|
|
|
136 |
|
|
|
(13.2 |
)% |
|
|
153 |
|
|
|
(22.9 |
)% |
Interest on Federal Funds Sold and Securities Purchased Under Resale Agreements |
|
|
17 |
|
|
|
65 |
|
|
|
(73.8 |
)% |
|
|
82 |
|
|
|
(79.3 |
)% |
Interest on Interest-Bearing Deposits in Other Banks |
|
|
55 |
|
|
|
70 |
|
|
|
(21.4 |
)% |
|
|
2 |
|
|
|
2,650.0 |
% |
Dividends on Federal Home Loan Bank Stock |
|
|
21 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Interest and Dividend Income |
|
|
38,053 |
|
|
|
42,957 |
|
|
|
(11.4 |
)% |
|
|
48,015 |
|
|
|
(20.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on Deposits |
|
|
9,704 |
|
|
|
13,410 |
|
|
|
(27.6 |
)% |
|
|
22,785 |
|
|
|
(57.4 |
)% |
Interest on Federal Home Loan Bank Advances |
|
|
346 |
|
|
|
412 |
|
|
|
(16.0 |
)% |
|
|
1,112 |
|
|
|
(68.9 |
)% |
Interest on Junior Subordinated Debentures |
|
|
669 |
|
|
|
690 |
|
|
|
(3.0 |
)% |
|
|
988 |
|
|
|
(32.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Interest Expense |
|
|
10,719 |
|
|
|
14,512 |
|
|
|
(26.1 |
)% |
|
|
24,885 |
|
|
|
(56.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES |
|
|
27,334 |
|
|
|
28,445 |
|
|
|
(3.9 |
)% |
|
|
23,130 |
|
|
|
18.2 |
% |
Provision for Credit Losses |
|
|
57,996 |
|
|
|
77,000 |
|
|
|
(24.7 |
)% |
|
|
45,953 |
|
|
|
26.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME (LOSS) AFTER PROVISION FOR CREDIT LOSSES |
|
|
(30,662 |
) |
|
|
(48,555 |
) |
|
|
(36.9 |
)% |
|
|
(22,823 |
) |
|
|
34.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service Charges on Deposit Accounts |
|
|
3,726 |
|
|
|
4,022 |
|
|
|
(7.4 |
)% |
|
|
4,315 |
|
|
|
(13.7 |
)% |
Insurance Commissions |
|
|
1,278 |
|
|
|
1,062 |
|
|
|
20.3 |
% |
|
|
1,182 |
|
|
|
8.1 |
% |
Remittance Fees |
|
|
462 |
|
|
|
530 |
|
|
|
(12.8 |
)% |
|
|
523 |
|
|
|
(11.7 |
)% |
Other Service Charges and Fees |
|
|
412 |
|
|
|
371 |
|
|
|
11.1 |
% |
|
|
483 |
|
|
|
(14.7 |
)% |
Trade Finance Fees |
|
|
351 |
|
|
|
439 |
|
|
|
(20.0 |
)% |
|
|
506 |
|
|
|
(30.6 |
)% |
Bank-Owned Life Insurance Income |
|
|
231 |
|
|
|
237 |
|
|
|
(2.5 |
)% |
|
|
234 |
|
|
|
(1.3 |
)% |
Net Gain on Sales of Investment Securities |
|
|
105 |
|
|
|
665 |
|
|
|
(84.2 |
)% |
|
|
1,167 |
|
|
|
(91.0 |
)% |
Net Gain on Sales of Loans |
|
|
— |
|
|
|
354 |
|
|
|
(100.0 |
)% |
|
|
2 |
|
|
|
(100.0 |
)% |
Other Operating Income (Loss) |
|
|
440 |
|
|
|
159 |
|
|
|
176.7 |
% |
|
|
66 |
|
|
|
566.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-Interest Income |
|
|
7,005 |
|
|
|
7,839 |
|
|
|
(10.6 |
)% |
|
|
8,478 |
|
|
|
(17.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and Employee Benefits |
|
|
8,786 |
|
|
|
8,442 |
|
|
|
4.1 |
% |
|
|
7,503 |
|
|
|
17.1 |
% |
Other Real Estate Owned Expense |
|
|
5,700 |
|
|
|
873 |
|
|
|
552.9 |
% |
|
|
143 |
|
|
|
3,886.0 |
% |
Occupancy and Equipment |
|
|
2,725 |
|
|
|
2,733 |
|
|
|
(0.3 |
)% |
|
|
2,884 |
|
|
|
(5.5 |
)% |
Deposit Insurance Premiums and Regulatory Assessments |
|
|
2,224 |
|
|
|
2,998 |
|
|
|
(25.8 |
)% |
|
|
1,490 |
|
|
|
49.3 |
% |
Data Processing |
|
|
1,499 |
|
|
|
1,606 |
|
|
|
(6.7 |
)% |
|
|
1,536 |
|
|
|
(2.4 |
)% |
Professional Fees |
|
|
1,066 |
|
|
|
1,354 |
|
|
|
(21.3 |
)% |
|
|
616 |
|
|
|
73.1 |
% |
Advertising and Promotion |
|
|
535 |
|
|
|
762 |
|
|
|
(29.8 |
)% |
|
|
569 |
|
|
|
(6.0 |
)% |
Supplies and Communications |
|
|
517 |
|
|
|
580 |
|
|
|
(10.9 |
)% |
|
|
570 |
|
|
|
(9.3 |
)% |
Amortization of Other Intangible Assets |
|
|
328 |
|
|
|
354 |
|
|
|
(7.3 |
)% |
|
|
429 |
|
|
|
(23.5 |
)% |
Loan-Related Expense |
|
|
307 |
|
|
|
357 |
|
|
|
(14.0 |
)% |
|
|
181 |
|
|
|
69.6 |
% |
Other Operating Expenses |
|
|
2,537 |
|
|
|
2,651 |
|
|
|
(4.3 |
)% |
|
|
2,429 |
|
|
|
4.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-Interest Expense |
|
|
26,224 |
|
|
|
22,710 |
|
|
|
15.5 |
% |
|
|
18,350 |
|
|
|
42.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE PROVISION (BENEFIT) FOR INCOME TAXES |
|
|
(49,881 |
) |
|
|
(63,426 |
) |
|
|
(21.4 |
)% |
|
|
(32,695 |
) |
|
|
52.6 |
% |
Provision (Benefit) for Income Taxes |
|
|
(395 |
) |
|
|
(27,545 |
) |
|
|
(98.6 |
)% |
|
|
(15,499 |
) |
|
|
(97.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS |
|
$ |
(49,486 |
) |
|
$ |
(35,881 |
) |
|
|
37.9 |
% |
|
$ |
(17,196 |
) |
|
|
187.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.97 |
) |
|
$ |
(0.70 |
) |
|
|
38.6 |
% |
|
$ |
(0.37 |
) |
|
|
162.2 |
% |
Diluted |
|
$ |
(0.97 |
) |
|
$ |
(0.70 |
) |
|
|
38.6 |
% |
|
$ |
(0.37 |
) |
|
|
162.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
50,998,990 |
|
|
|
50,998,103 |
|
|
|
|
|
|
|
45,891,043 |
|
|
|
|
|
Diluted |
|
|
50,998,990 |
|
|
|
50,998,103 |
|
|
|
|
|
|
|
45,891,043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHARES OUTSTANDING AT PERIOD-END |
|
|
51,182,390 |
|
|
|
51,182,390 |
|
|
|
|
|
|
|
45,940,967 |
|
|
|
|
|
7
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in Thousands)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| |
|
March 31, |
|
|
December 31, |
|
|
% |
|
|
March 31, |
|
|
% |
|
| |
|
2010 |
|
|
2009 |
|
|
Change |
|
|
2009 |
|
|
Change |
|
AVERAGE BALANCES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Gross Loans, Net of Deferred Loan Fees |
|
$ |
2,765,701 |
|
|
$ |
2,924,722 |
|
|
|
(5.4 |
)% |
|
$ |
3,349,085 |
|
|
|
(17.4 |
)% |
Average Investment Securities |
|
|
125,340 |
|
|
|
182,635 |
|
|
|
(31.4 |
)% |
|
|
182,284 |
|
|
|
(31.2 |
)% |
Average Interest-Earning Assets |
|
|
3,010,938 |
|
|
|
3,291,042 |
|
|
|
(8.5 |
)% |
|
|
3,806,186 |
|
|
|
(20.9 |
)% |
Average Total Assets |
|
|
3,086,198 |
|
|
|
3,356,383 |
|
|
|
(8.0 |
)% |
|
|
3,946,727 |
|
|
|
(21.8 |
)% |
Average Deposits |
|
|
2,662,960 |
|
|
|
2,914,794 |
|
|
|
(8.6 |
)% |
|
|
3,202,032 |
|
|
|
(16.8 |
)% |
Average Borrowings |
|
|
257,132 |
|
|
|
244,704 |
|
|
|
5.1 |
% |
|
|
440,053 |
|
|
|
(41.6 |
)% |
Average Interest-Bearing Liabilities |
|
|
2,360,992 |
|
|
|
2,598,520 |
|
|
|
(9.1 |
)% |
|
|
3,115,332 |
|
|
|
(24.2 |
)% |
Average Stockholders’ Equity |
|
|
137,931 |
|
|
|
164,767 |
|
|
|
(16.3 |
)% |
|
|
263,553 |
|
|
|
(47.7 |
)% |
Average Tangible Equity |
|
|
134,679 |
|
|
|
161,169 |
|
|
|
(16.4 |
)% |
|
|
258,775 |
|
|
|
(48.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS (Annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average Assets |
|
|
(6.50 |
)% |
|
|
(4.24 |
)% |
|
|
|
|
|
|
(1.77 |
)% |
|
|
|
|
Return on Average Stockholders’ Equity |
|
|
(145.50 |
)% |
|
|
(86.40 |
)% |
|
|
|
|
|
|
(26.46 |
)% |
|
|
|
|
Return on Average Tangible Equity |
|
|
(149.02 |
)% |
|
|
(88.33 |
)% |
|
|
|
|
|
|
(26.95 |
)% |
|
|
|
|
Efficiency Ratio |
|
|
76.37 |
% |
|
|
62.59 |
% |
|
|
|
|
|
|
58.05 |
% |
|
|
|
|
Net Interest Spread (1) |
|
|
3.29 |
% |
|
|
2.99 |
% |
|
|
|
|
|
|
1.91 |
% |
|
|
|
|
Net Interest Margin (1) |
|
|
3.69 |
% |
|
|
3.46 |
% |
|
|
|
|
|
|
2.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLOWANCE FOR LOAN LOSSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at Beginning of Period |
|
$ |
144,996 |
|
|
$ |
124,768 |
|
|
|
16.2 |
% |
|
$ |
70,986 |
|
|
|
104.3 |
% |
Provision Charged to Operating Expense |
|
|
59,217 |
|
|
|
77,540 |
|
|
|
(23.6 |
)% |
|
|
45,770 |
|
|
|
29.4 |
% |
Charge-Offs, Net of Recoveries |
|
|
(26,393 |
) |
|
|
(57,312 |
) |
|
|
(53.9 |
)% |
|
|
(11,813 |
) |
|
|
123.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at End of Period |
|
$ |
177,820 |
|
|
$ |
144,996 |
|
|
|
22.6 |
% |
|
$ |
104,943 |
|
|
|
69.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Loan Losses to Total Gross Loans |
|
|
6.63 |
% |
|
|
5.14 |
% |
|
|
|
|
|
|
3.16 |
% |
|
|
|
|
Allowance for Loan Losses to Total Non-Performing Loans |
|
|
67.81 |
% |
|
|
66.19 |
% |
|
|
|
|
|
|
67.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at Beginning of Period |
|
$ |
3,876 |
|
|
$ |
4,416 |
|
|
|
(12.2 |
)% |
|
$ |
4,096 |
|
|
|
(5.4 |
)% |
Provision Charged to Operating Expense |
|
|
(1,221 |
) |
|
|
(540 |
) |
|
|
126.1 |
% |
|
|
183 |
|
|
|
(31.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at End of Period |
|
$ |
2,655 |
|
|
$ |
3,876 |
|
|
|
(31.5 |
)% |
|
$ |
4,279 |
|
|
|
(38.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
57,996 |
|
|
|
77,000 |
|
|
|
(24.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
| (1) |
|
Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate. |
8
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED) (Continued)
(Dollars in Thousands)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
March 31, |
|
|
December 31, |
|
|
% |
|
|
March 31, |
|
|
% |
|
| |
|
2010 |
|
|
2009 |
|
|
Change |
|
|
2009 |
|
|
Change |
|
NON-PERFORMING ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Accrual Loans |
|
$ |
262,232 |
|
|
$ |
219,000 |
|
|
|
19.7 |
% |
|
$ |
155,508 |
|
|
|
68.6 |
% |
Loans 90 Days or More Past Due and Still Accruing |
|
|
— |
|
|
|
67 |
|
|
|
(100.0 |
)% |
|
|
823 |
|
|
|
(100.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-Performing Loans |
|
|
262,232 |
|
|
|
219,067 |
|
|
|
19.7 |
% |
|
|
156,331 |
|
|
|
67.7 |
% |
Other Real Estate Owned, Net |
|
|
22,399 |
|
|
|
26,306 |
|
|
|
(14.9 |
)% |
|
|
1,206 |
|
|
|
1,757.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-Performing Assets |
|
$ |
284,631 |
|
|
$ |
245,373 |
|
|
|
16.0 |
% |
|
$ |
157,537 |
|
|
|
80.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-Performing Loans/Total Gross Loans |
|
|
9.77 |
% |
|
|
7.77 |
% |
|
|
|
|
|
|
4.71 |
% |
|
|
|
|
Total Non-Performing Assets/Total Assets |
|
|
9.43 |
% |
|
|
7.76 |
% |
|
|
|
|
|
|
4.06 |
% |
|
|
|
|
Total Non-Performing Assets/Allowance for Loan Losses |
|
|
160.1 |
% |
|
|
169.2 |
% |
|
|
|
|
|
|
150.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELINQUENT LOANS (Accrual Status) |
|
$ |
68,640 |
|
|
$ |
41,151 |
|
|
|
66.8 |
% |
|
$ |
48,046 |
|
|
|
42.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquent Loans (Accrual Status)/Total Gross Loans |
|
|
2.56 |
% |
|
|
1.46 |
% |
|
|
|
|
|
|
1.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOAN PORTFOLIO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Loans |
|
$ |
986,417 |
|
|
$ |
1,043,097 |
|
|
|
(5.4 |
)% |
|
$ |
1,185,054 |
|
|
|
(16.8 |
)% |
Commercial and Industrial Loans (2) |
|
|
1,638,550 |
|
|
|
1,714,212 |
|
|
|
(4.4 |
)% |
|
|
2,055,209 |
|
|
|
(20.3 |
)% |
Consumer Loans |
|
|
58,886 |
|
|
|
63,303 |
|
|
|
(7.0 |
)% |
|
|
79,459 |
|
|
|
(25.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Gross Loans |
|
|
2,683,853 |
|
|
|
2,820,612 |
|
|
|
(4.8 |
)% |
|
|
3,319,722 |
|
|
|
(19.2 |
)% |
Deferred Loan Fees |
|
|
(963 |
) |
|
|
(1,552 |
) |
|
|
(38.0 |
)% |
|
|
(1,340 |
) |
|
|
(28.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Loans, Net of Deferred Loan Fees |
|
|
2,682,890 |
|
|
|
2,819,060 |
|
|
|
(4.8 |
)% |
|
|
3,318,382 |
|
|
|
(19.2 |
)% |
Allowance for Loan Losses |
|
|
(177,820 |
) |
|
|
(144,996 |
) |
|
|
22.6 |
% |
|
|
(104,943 |
) |
|
|
69.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Receivable, Net |
|
$ |
2,505,070 |
|
|
$ |
2,674,064 |
|
|
|
(6.3 |
)% |
|
$ |
3,213,439 |
|
|
|
(22.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOAN MIX: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Loans |
|
|
36.8 |
% |
|
|
37.0 |
% |
|
|
|
|
|
|
35.7 |
% |
|
|
|
|
Commercial and Industrial Loans (2) |
|
|
61.1 |
% |
|
|
60.8 |
% |
|
|
|
|
|
|
61.9 |
% |
|
|
|
|
Consumer Loans |
|
|
2.1 |
% |
|
|
2.2 |
% |
|
|
|
|
|
|
2.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Gross Loans |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT PORTFOLIO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand — Noninterest-Bearing |
|
$ |
575,015 |
|
|
$ |
556,306 |
|
|
|
3.4 |
% |
|
$ |
542,521 |
|
|
|
6.0 |
% |
Savings |
|
|
121,041 |
|
|
|
111,172 |
|
|
|
8.9 |
% |
|
|
82,824 |
|
|
|
46.1 |
% |
Money Market Checking and NOW Accounts |
|
|
488,366 |
|
|
|
685,858 |
|
|
|
(28.8 |
)% |
|
|
308,383 |
|
|
|
58.4 |
% |
Time Deposits of $100,000 or More |
|
|
1,048,688 |
|
|
|
815,190 |
|
|
|
28.6 |
% |
|
|
1,218,826 |
|
|
|
(14.0 |
)% |
Other Time Deposits |
|
|
417,170 |
|
|
|
580,801 |
|
|
|
(28.2 |
)% |
|
|
1,043,555 |
|
|
|
(60.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Deposits |
|
$ |
2,650,280 |
|
|
$ |
2,749,327 |
|
|
|
(3.6 |
)% |
|
$ |
3,196,109 |
|
|
|
(17.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT MIX: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand — Noninterest-Bearing |
|
|
21.7 |
% |
|
|
20.2 |
% |
|
|
|
|
|
|
17.0 |
% |
|
|
|
|
Savings |
|
|
4.6 |
% |
|
|
4.0 |
% |
|
|
|
|
|
|
2.6 |
% |
|
|
|
|
Money Market Checking and NOW Accounts |
|
|
18.4 |
% |
|
|
24.9 |
% |
|
|
|
|
|
|
9.6 |
% |
|
|
|
|
Time Deposits of $100,000 or More |
|
|
39.6 |
% |
|
|
29.7 |
% |
|
|
|
|
|
|
38.1 |
% |
|
|
|
|
Other Time Deposits |
|
|
15.7 |
% |
|
|
21.2 |
% |
|
|
|
|
|
|
32.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Deposits |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL RATIOS (Bank Only): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Risk-Based |
|
|
7.81 |
% |
|
|
9.07 |
% |
|
|
|
|
|
|
10.50 |
% |
|
|
|
|
Tier 1 Risk-Based |
|
|
6.49 |
% |
|
|
7.77 |
% |
|
|
|
|
|
|
9.22 |
% |
|
|
|
|
Tier 1 Leverage |
|
|
5.68 |
% |
|
|
6.69 |
% |
|
|
|
|
|
|
8.10 |
% |
|
|
|
|
|
|
|
| (2) |
|
Commercial and industrial loans include owner-occupied property loans of $1,08
billion, $1,15 billion and $1,23 billion as of March 31, 2010, December 31, 2009, and March 31,
2009, respectively. |
9
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID (UNAUDITED)
(Dollars in Thousands)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| |
|
March 31, 2010 |
|
|
December 31, 2009 |
|
|
March 31, 2009 |
|
| |
|
|
|
|
|
Interest |
|
|
Average |
|
|
|
|
|
|
Interest |
|
|
Average |
|
|
|
|
|
|
Interest |
|
|
Average |
|
| |
|
Average |
|
|
Income/ |
|
|
Yield/ |
|
|
Average |
|
|
Income/ |
|
|
Yield/ |
|
|
Average |
|
|
Income/ |
|
|
Yield/ |
|
| |
|
Balance |
|
|
Expense |
|
|
Rate |
|
|
Balance |
|
|
Expense |
|
|
Rate |
|
|
Balance |
|
|
Expense |
|
|
Rate |
|
| INTEREST-EARNING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Property |
|
$ |
836,147 |
|
|
$ |
11,374 |
|
|
|
5.52 |
% |
|
$ |
861,831 |
|
|
$ |
11,872 |
|
|
|
5.47 |
% |
|
$ |
914,632 |
|
|
$ |
12,937 |
|
|
|
5.74 |
% |
Construction |
|
|
113,115 |
|
|
|
1,394 |
|
|
|
5.00 |
% |
|
|
130,400 |
|
|
|
1,342 |
|
|
|
4.08 |
% |
|
|
180,026 |
|
|
|
1,547 |
|
|
|
3.49 |
% |
Residential Property |
|
|
74,077 |
|
|
|
783 |
|
|
|
4.29 |
% |
|
|
80,257 |
|
|
|
997 |
|
|
|
4.93 |
% |
|
|
90,490 |
|
|
|
1,163 |
|
|
|
5.21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Real Estate Loans |
|
|
1,023,339 |
|
|
|
13,551 |
|
|
|
5.37 |
% |
|
|
1,072,488 |
|
|
|
14,211 |
|
|
|
5.26 |
% |
|
|
1,185,148 |
|
|
|
15,647 |
|
|
|
5.35 |
% |
Commercial and Industrial Loans (1) |
|
|
1,682,429 |
|
|
|
22,235 |
|
|
|
5.36 |
% |
|
|
1,787,795 |
|
|
|
25,472 |
|
|
|
5.65 |
% |
|
|
2,083,951 |
|
|
|
28,237 |
|
|
|
5.50 |
% |
Consumer Loans |
|
|
61,197 |
|
|
|
849 |
|
|
|
5.63 |
% |
|
|
66,074 |
|
|
|
965 |
|
|
|
5.79 |
% |
|
|
81,244 |
|
|
|
1,153 |
|
|
|
5.76 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Gross Loans |
|
|
2,766,965 |
|
|
|
36,635 |
|
|
|
5.37 |
% |
|
|
2,926,357 |
|
|
|
40,648 |
|
|
|
5.51 |
% |
|
|
3,350,343 |
|
|
|
45,037 |
|
|
|
5.45 |
% |
Prepayment Penalty Income |
|
|
— |
|
|
|
60 |
|
|
|
— |
|
|
|
— |
|
|
|
162 |
|
|
|
— |
|
|
|
— |
|
|
|
48 |
|
|
|
— |
|
Unearned Income on Loans, Net of Costs |
|
|
(1,264 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,635 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,258 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Loans, Net |
|
|
2,765,701 |
|
|
|
36,695 |
|
|
|
5.38 |
% |
|
|
2,924,722 |
|
|
|
40,810 |
|
|
|
5.54 |
% |
|
|
3,349,085 |
|
|
|
45,085 |
|
|
|
5.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds (2) |
|
|
7,549 |
|
|
|
118 |
|
|
|
6.25 |
% |
|
|
41,653 |
|
|
|
665 |
|
|
|
6.39 |
% |
|
|
58,886 |
|
|
|
989 |
|
|
|
6.72 |
% |
U.S. Government Agency Securities |
|
|
32,120 |
|
|
|
383 |
|
|
|
4.77 |
% |
|
|
36,500 |
|
|
|
437 |
|
|
|
4.79 |
% |
|
|
9,578 |
|
|
|
96 |
|
|
|
4.01 |
% |
Mortgage-Backed Securities |
|
|
61,920 |
|
|
|
490 |
|
|
|
3.17 |
% |
|
|
77,354 |
|
|
|
738 |
|
|
|
3.82 |
% |
|
|
75,716 |
|
|
|
895 |
|
|
|
4.73 |
% |
Collateralized Mortgage Obligations |
|
|
11,382 |
|
|
|
113 |
|
|
|
3.97 |
% |
|
|
14,312 |
|
|
|
143 |
|
|
|
4.00 |
% |
|
|
33,631 |
|
|
|
348 |
|
|
|
4.14 |
% |
Corporate Bonds |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
286 |
|
|
|
— |
|
|
|
— |
|
|
|
159 |
|
|
|
(22 |
) |
|
|
-55.35 |
% |
Other Securities |
|
|
12,369 |
|
|
|
98 |
|
|
|
3.17 |
% |
|
|
12,530 |
|
|
|
97 |
|
|
|
3.10 |
% |
|
|
4,314 |
|
|
|
33 |
|
|
|
3.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Securities (2) |
|
|
125,340 |
|
|
|
1,202 |
|
|
|
3.84 |
% |
|
|
182,635 |
|
|
|
2,080 |
|
|
|
4.56 |
% |
|
|
182,284 |
|
|
|
2,339 |
|
|
|
5.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Interest-Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Securities |
|
|
39,369 |
|
|
|
125 |
|
|
|
1.27 |
% |
|
|
40,605 |
|
|
|
136 |
|
|
|
1.34 |
% |
|
|
41,727 |
|
|
|
153 |
|
|
|
1.49 |
% |
Federal
Funds Sold and Securities Purchased Under Resale Agreements |
|
|
14,118 |
|
|
|
17 |
|
|
|
0.48 |
% |
|
|
51,713 |
|
|
|
65 |
|
|
|
0.50 |
% |
|
|
94,585 |
|
|
|
82 |
|
|
|
0.35 |
% |
Term Federal Funds Sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,500 |
|
|
|
30 |
|
|
|
1.41 |
% |
|
|
138,344 |
|
|
|
700 |
|
|
|
2.05 |
% |
Interest-Bearing Deposits in Other Banks |
|
|
66,410 |
|
|
|
55 |
|
|
|
0.33 |
% |
|
|
82,867 |
|
|
|
70 |
|
|
|
0.34 |
% |
|
|
161 |
|
|
|
2 |
|
|
|
5.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Interest-Earning Assets |
|
|
119,897 |
|
|
|
197 |
|
|
|
0.66 |
% |
|
|
183,685 |
|
|
|
301 |
|
|
|
0.66 |
% |
|
|
274,817 |
|
|
|
937 |
|
|
|
1.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INTEREST-EARNING ASSETS (2) |
|
$ |
3,010,938 |
|
|
$ |
38,094 |
|
|
|
5.13 |
% |
|
$ |
3,291,042 |
|
|
$ |
43,191 |
|
|
|
5.21 |
% |
|
$ |
3,806,186 |
|
|
$ |
48,361 |
|
|
|
5.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INTEREST-BEARING LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
$ |
115,625 |
|
|
$ |
824 |
|
|
|
2.89 |
% |
|
$ |
104,068 |
|
|
$ |
711 |
|
|
|
2.71 |
% |
|
$ |
82,029 |
|
|
$ |
505 |
|
|
|
2.50 |
% |
Money Market Checking and NOW Accounts |
|
|
558,916 |
|
|
|
1,622 |
|
|
|
1.18 |
% |
|
|
733,063 |
|
|
|
3,508 |
|
|
|
1.90 |
% |
|
|
343,354 |
|
|
|
1,854 |
|
|
|
2.19 |
% |
Time Deposits of $100,000 or More |
|
|
924,055 |
|
|
|
4,677 |
|
|
|
2.05 |
% |
|
|
835,726 |
|
|
|
4,930 |
|
|
|
2.34 |
% |
|
|
1,078,650 |
|
|
|
10,322 |
|
|
|
3.88 |
% |
Other Time Deposits |
|
|
505,264 |
|
|
|
2,581 |
|
|
|
2.07 |
% |
|
|
680,959 |
|
|
|
4,261 |
|
|
|
2.48 |
% |
|
|
1,171,246 |
|
|
|
10,104 |
|
|
|
3.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Interest-Bearing Deposits |
|
|
2,103,860 |
|
|
|
9,704 |
|
|
|
1.87 |
% |
|
|
2,353,816 |
|
|
|
13,410 |
|
|
|
2.26 |
% |
|
|
2,675,279 |
|
|
|
22,785 |
|
|
|
3.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLB Advances |
|
|
173,062 |
|
|
|
346 |
|
|
|
0.81 |
% |
|
|
160,754 |
|
|
|
412 |
|
|
|
1.02 |
% |
|
|
356,190 |
|
|
|
1,112 |
|
|
|
1.27 |
% |
Other Borrowings |
|
|
1,664 |
|
|
|
— |
|
|
|
0.00 |
% |
|
|
1,544 |
|
|
|
— |
|
|
|
0.00 |
% |
|
|
1,457 |
|
|
|
— |
|
|
|
0.00 |
% |
Junior Subordinated Debentures |
|
|
82,406 |
|
|
|
669 |
|
|
|
3.29 |
% |
|
|
82,406 |
|
|
|
690 |
|
|
|
3.32 |
% |
|
|
82,406 |
|
|
|
988 |
|
|
|
4.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Borrowings |
|
|
257,132 |
|
|
|
1,015 |
|
|
|
1.60 |
% |
|
|
244,704 |
|
|
|
1,102 |
|
|
|
1.79 |
% |
|
|
440,053 |
|
|
|
2,100 |
|
|
|
1.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INTEREST-BEARING LIABILITIES |
|
$ |
2,360,992 |
|
|
$ |
10,719 |
|
|
|
1.84 |
% |
|
$ |
2,598,520 |
|
|
$ |
14,512 |
|
|
|
2.22 |
% |
|
$ |
3,115,332 |
|
|
$ |
24,885 |
|
|
|
3.24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME (2) |
|
|
|
|
|
$ |
27,375 |
|
|
|
|
|
|
|
|
|
|
$ |
28,679 |
|
|
|
|
|
|
|
|
|
|
$ |
23,476 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST SPREAD (2) |
|
|
|
|
|
|
|
|
|
|
3.29 |
% |
|
|
|
|
|
|
|
|
|
|
2.99 |
% |
|
|
|
|
|
|
|
|
|
|
1.91 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST MARGIN (2) |
|
|
|
|
|
|
|
|
|
|
3.69 |
% |
|
|
|
|
|
|
|
|
|
|
3.46 |
% |
|
|
|
|
|
|
|
|
|
|
2.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
|
Commercial and industrial loans include owner-occupied
commercial real estate loans |
| |
| (2) |
|
Amounts calculated on a fully taxable equivalent basis using the current statutory
federal tax rate. |
10
