Exhibit 99.1
(HANMI FINANCIAL CORP LOGO)
Hanmi Financial Corporation Fourth Quarter 2010 Nets
First Quarterly Profit of $5.3 Million in Two Years
LOS ANGELES — January 27, 2011 — Hanmi Financial Corporation (NASDAQ: HAFC), the holding company for Hanmi Bank, today reported a fourth quarter profit of $5.3 million or $0.04 per diluted share, with substantial improvement in credit metrics. In the fourth quarter of 2009, Hanmi’s net loss totaled $35.9 million, or $0.70 per share. For the full year in 2010, the net loss improved to $88.0 million, or $0.93 per share, compared to $122.3 million, or $2.57 per share in 2009.
“We believe that our continuing efforts to shed problem assets through credit workouts and asset sales has improved credit quality metrics and allowed us to return to profitability,” said Jay S. Yoo, President and Chief Executive Officer. “Our successful capital raise earlier in July 2010 was an additional factor in strengthening our capital position. Hanmi Bank continued to be categorized as ‘well-capitalized’ for regulatory purposes at December 31, 2010.”
2010 Highlights
    Hanmi’s fourth quarter results mark the first time in over two years that Hanmi Financial has earned a quarterly profit of $5.3 million.
 
    Credit metrics, which began to improve at the beginning of 2010, continued improving as the year progressed. Non-performing assets (NPA), which is non-performing loans (NPLs) and other real estate owned (OREO) assets, decreased by 20% to $173.1 million, or 5.95% of total assets, from $215.3 million or 7.25% of total assets in the third quarter and $245.4 million, or 7.76% a year ago. The coverage ratio of the allowance to non-performing loans increased to 86.4% at December 31, 2010 compared to 66.2% a year ago while slightly decreased compared to 90.4% in the prior quarter.
 
    During 2010, the successful deleveraging of the balance sheet reduced total assets by 8% or $256 million to $2.91 billion, with gross loans down 20%.
 
    Net interest margin (NIM) was stable at 3.48% in the fourth quarter of 2010, down one basis point from 3.49% in the third quarter of 2010 and up 2 basis points from the fourth quarter a year ago. For the full year, NIM increased 71 basis points to 3.55% from 2.84% at December 31, 2009.
Capital Management
“The successful rights offering and best efforts stock offerings in July 2010 have provided the necessary capital to return our balance sheet to ‘well capitalized’ regulatory status and provided us with the capital resources to assist us in achieving profitability in this most recently completed quarter,” Mr. Yoo stated. “We understand that Woori Finance continues to work closely with regulators to achieve approval for the previously announced transaction. Since this transaction is no longer exclusive, we are now considering alternative capital sources to further enhance our capital position and fund balance sheet growth.”
With the profit generated from operations along with the decrease in our total assets, the Bank’s Total Risk-Based Capital Ratio at year-end increased to 12.23% compared with 11.61% in the immediate prior quarter-end and 9.07% a year ago. At December 31, 2010, Tier 1 Risk-Based Capital Ratio was 10.91% compared to 10.28% at September 30, 2010, and 7.77% a year ago. Fourth quarter Tier 1 Leverage Ratio was 8.55% compared to 8.26% in the third quarter and 6.69% in the fourth quarter of 2009. The Bank’s Tangible Common Equity to Tangible Assets at year-end increased to 8.60% compared with 8.37% in the linked quarter and 7.13% a year ago.
Asset Quality
At December 31, 2010, the allowance for loan losses was $146.1 million, or 6.44% of gross loans, compared to $176.1 million, or 7.35% of gross loans, at September 30, 2010, and $145.0 million, or 5.14% of gross loans a year ago. The ratio of Hanmi’s loan loss allowance to non-performing loans at December 31, 2010, increased to 86.41%, up from 66.19% a year ago. Fourth quarter charge-offs, net of recoveries, were $35.2 million compared to $21.3 million in the third quarter

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and $57.3 million in the fourth quarter of 2009. For the full year in 2010, net charge-offs were $121.9 million compared to $122.6 million in 2009.
NPLs declined 13% to $169.0 million at December 31, 2010, from $194.7 million at September 30, 2010, and are down 23% from $219.1 million at December 31, 2009. Of the total $169.0 million NPLs, $43.0 million, or 25%, were current on payments. In addition, $69.4 million, or 41%, were marked to current market value with partial charge-offs. Out of the $69.4 million, $26.6 million were categorized as available for sale. We sold 29 NPLs with carrying value of $28.6 million in the fourth quarter, which contributed to the decline of NPLs in the quarter. Year-to-date, we sold 87 loans with carrying value of $156.8 million.
Sale of OREOs, real estate acquired through foreclosures, continued during the fourth quarter, with 5 properties sold for net proceeds of $17.1 million, resulting in a $115,000 net loss. In 2010, OREO sales generated $25.9 million in net proceeds on the sale of 18 properties, resulting in a $196,000 net loss. OREOs totaled $4.1 million at December 31, 2010, down from $20.6 million at September 30, 2010 and also down from $26.3 million a year ago. Hanmi actively manages its loan portfolio and regularly sells assets prior to foreclosure, which partially accounts for the reduction of OREO. The following table shows non-performing loans by loan category:
Total Non-Performing Loans
                                                 
            % of Total           % of Total           % of Total
(’000)   12/31/2010   NPL   9/30/2010   NPL   12/31/2009   NPL
Real Estate Loans:
                                               
Commercial Property
    21,129       12.5 %     31,103       16.0 %     60,159       27.5 %
Construction
    19,097       11.3 %     9,338       4.8 %     15,166       6.9 %
Land Loans
    26,808       15.2 %     29,701       15.2 %     19       0.0 %
Residential Property
    2,674       1.6 %     2,264       1.2 %     3,662       1.7 %
Commercial & Industrial Loans:
                                               
Owner Occupied Property
    68,441       40.5 %     90,777       46.6 %     96,966       44.3 %
Other C&I
    30,581       18.1 %     31,216       16.0 %     42,405       19.4 %
Consumer Loans
    298       0.2 %     330       0.2 %     690       0.3 %
                                                 
TOTAL NPL
    169,028       100.0 %     194,729       100.0 %     219,067       100.0 %
                                                 
The proactive approach to resolving problematic credits in 2010 helped reduce delinquent loans on accrual status, which are not included in the NPL total. Delinquent loans on accrual status decreased to $21.5 million, or 0.95% of gross loans at December 31, 2010, from $41.2 million, or 1.46% of gross loans at December 31, 2009. On a sequential quarter basis, the amount of delinquent loans on accrual status decreased from $23.9 million at September 30, 2010 due to a decrease in delinquent construction loans on accrual status. This decrease was partially offset by a minor increase in Commercial & Industrial delinquent loans on an accrual status. The following table shows delinquent loans on accrual status by loan category:
Delinquent loans on accrual status
                                                 
(’000)   12/31/2010   % of Total   9/30/2010   % of Total   12/31/2009   % of Total
Real Estate Loans:
                                               
Commercial Property
                    382       1.6 %     3,500       8.5 %
Construction
    4,894       22.8 %     8,714       36.5 %                
Land Loans
                                    150       0.4 %
Residential Property
    951       4.4 %     801       3.4 %     1,190       2.9 %
Commercial & Industrial Loans:
                                               
Owner Occupied Property
    10,408       48.5 %     9,261       38.7 %     23,833       57.8 %
Other C&I
    5,004       23.3 %     4,543       19.0 %     11,951       29.0 %
Consumer Loans
    200       0.9 %     195       0.8 %     594       1.4 %
                                                 
TOTAL
    21,457       100.0 %     23,896       100.0 %     41,218       100.0 %
                                                 

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Balance Sheet
We believe that our deleveraging strategy in the last two years has been successful in reducing portfolio risk and preserving capital. With our enhanced capital levels, we have begun to implement plans to grow our customer base, albeit at moderate levels. With loan demand still soft, we anticipate that any growth will come from attracting new customers and capitalizing on continuing disruption in the regional banking market.
Total assets decreased slightly at the end of the fourth quarter to $2.91 billion, from $2.97 billion at September 30, 2010, and down 8% from $3.16 billion at December 31, 2009. Gross loans, net of deferred loan fees, were $2.27 billion at December 31, 2010, down 5% from $2.39 billion at September 30, 2010, and down 20% from $2.82 billion at December 31, 2009.
Average gross loans decreased 20% to $2.35 billion for the fourth quarter of 2010 from $2.92 billion for the like quarter a year ago and declined 4% during the fourth quarter from $2.46 billion for the third quarter of 2010. Hanmi’s average investment securities portfolio increased 92% to $351.0 million for the fourth quarter of 2010 from $182.6 million for the fourth quarter of 2009 and increased 57% for the fourth quarter of 2010 from $223.7 million from the quarter ended September 30. 2010. The decreases in average gross loans over the past year were the direct result of the balance sheet deleveraging strategy. The Bank increased investment securities to enforce liquidity preservation strategy.
Consistent with the deleveraging strategy, average deposits also decreased 14% to $2.51 billion for the fourth quarter of 2010 from $2.91 billion for the like quarter in 2009 and declined 2% from $2.56 billion for the third quarter of 2010.
The deposit mix at year-end continues to reflect efforts to build core deposits and improve the Bank’s cost of funds. There are no brokered deposits in the deposit mix at year-end. Total deposits decreased 10% year-over-year and declined 2% from the prior quarter. The 10% year-over-year decrease in total deposits was primarily due to a $203 million decrease in brokered deposits. Total deposits were $2.47 billion at December 31, 2010, compared to $2.53 billion at September 30, 2010, and $2.75 billion at December 31, 2009.
Results of Operations
Net interest income, before the provision for credit losses, totaled $26.0 million for the fourth quarter of 2010 which was down 1% from $26.3 million in the linked quarter and down 9% from $28.4 million in the fourth quarter a year ago. Increased liquidity from the capital raise earlier in the year was deployed to cash and cash equivalent balances and investment securities which are generally lower yielding assets. The cost of funds also declined in the quarter reflecting reductions in high-cost time deposits and an increase in low-cost deposits. For the full year in 2010, net interest income before provision for credit losses increased 5% to $105.9 million compared to $101.2 million in 2009.
Loan yields increased and deposit costs decreased which benefited our net interest margin. These benefits were offset by higher balances of investment securities, which generate lower yields but allowing a strong liquidity position. The average yield on the loan portfolio increased 4 basis points to 5.48% from 5.44% from the prior quarter and decreased 6 basis points from the fourth quarter in 2009. For the full year 2010, the average yield on the loan portfolio decreased 9 basis points to 5.40% from 5.49% in 2009. In 2010, the reversal of previously recorded interest income due to the additional non-accrual loans was $3.2 million ($0.3million in the fourth quarter), resulting in a negative impact on NIM by 11 basis points. The cost of average interest-bearing deposits in the fourth quarter was 1.55%, down 10 basis points from the prior quarter and 71 basis points from the fourth quarter of 2009. For the full year 2010, the cost of average interest bearing deposits was 1.70%, down 127 basis points from a year ago. As a result, Hanmi’s net interest margin was down just one basis point at 3.48% in the fourth quarter of 2010 from 3.49% in the third quarter and up 2 basis points compared to 3.46% in the fourth quarter of 2009. NIM improved 71 basis points to 3.55% for 2010 from 2.84% for 2009.
Despite the quarterly increase in net charge-offs, the provision for credit losses in the fourth quarter of 2010 decreased to $5.0 million, compared to $22.0 million in the prior quarter and $77.0 million in the fourth quarter a year ago, due to the decrease in classified assets, non-performing loans, and overall loan balance. For the full year, the provision for credit losses totaled $122.5 million, down from $196.4 million in 2009. The provision for loan losses has decreased steadily now for four consecutive quarters.
Total non-interest income in the fourth quarter of 2010 was $6.1 million, up 7% from $5.7 million in the third quarter of 2010 and down 23% from $7.8 million in the fourth quarter of 2009. The year-over-year decrease in non-interest income is

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primarily attributable to decreases in service charges on deposit accounts and a decrease in net gain on sale of loans and securities. Service charges on deposit accounts decreased to $3.3 million for the fourth quarter of 2010 from $3.4 million in the linked quarter and $4.0 million for the same quarter of 2009. The decrease in service charges on deposit accounts was associated with the reduction of the deposit portfolio reflecting the deleveraging strategy. The net gain on the sale of loans decreased 69% from the prior quarter and 80% from the fourth quarter a year ago. In the fourth quarter of 2009, the Bank sold accumulated inventory of SBA loans upon the recovery of the SBA secondary market. For the year, non-interest income decreased 21%, or $6.7 million, to $25.4 million, compared to $32.1 million in 2009, primarily due to a $1.7 million decrease in net gain on sales of investment securities in addition to the aforementioned factors.
Total non-interest expense decreased 10% in the quarter and 4% year-over-year to $21.7 million for the fourth quarter, down from $24.1 million in the third quarter of 2010 and $22.7 million for the fourth quarter a year ago. The overall improvement of non-interest expense in general was across the board. For the year, non-interest expense increased 7.1%, or $6.5 million, to $96.8 million, compared to $90.4 million in 2009, primarily due to expenses related to managing and provisioning for OREO properties and the absence of reversal of a $2.5 million previously accrued liability on a post-retirement death benefit that was recognized in 2009.
Conference Call Information
Management will host a conference today at 1:30 p.m. PDT (4.30 p.m. EDT) to discuss these financial results. This call will also be broadcast live via the internet. Investment professionals and all others are invited to access the live call by dialing (866) 383-8108 or (617) 597-5343 for international callers at 1:30 p.m. (PDT), using access code HANMI. To listen to the call online, either live or archived, visit the Investor Relations page of Hanmi Financial Corporation website at www.hanmi.com. Shortly after the call concludes, the replay will also be available at (888) 286-8010 or (617) 801-6888 for international callers, using access code #12399068 where it will be archived until February 14, 2011.
About Hanmi Financial Corporation
Headquartered in Los Angeles, Hanmi Bank, a wholly-owned subsidiary of Hanmi Financial Corporation, provides services to the multi-ethnic communities of California, with 27 full-service offices in Los Angeles, Orange, San Bernardino, San Francisco, Santa Clara and San Diego counties, and a loan production office in Washington State. Hanmi Bank specializes in commercial, SBA and trade finance lending, and is a recognized community leader. Hanmi Bank’s mission is to provide a full range of quality products and premier services to its customers and to maximize shareholder value. Additional information is available at www.hanmi.com.
Forward-Looking Statements
This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. All statements other than statements of historical fact are “forward —looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our securities purchase agreement with Woori Finance Holdings, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statement. These factors include the following: inability to consummate the proposed transaction with Woori Finance Holdings on the terms contemplated in the Securities Purchase Agreement entered into with Woori on May 25, 2010, as amended (the “transaction”); failure to receive regulatory approval for the Transaction; inability to continue as a going concern; inability to raise additional capital on acceptable terms or at all; failure to maintain adequate levels of capital and liquidity to support our operations; the effect of regulatory orders we have entered into and potential future supervisory action against us or Hanmi Bank; general economic and business conditions internationally, nationally and in those areas in which we operate; volatility and deterioration in the credit and equity markets; changes in consumer spending, borrowing and savings habits; availability of capital from private and government sources; demographic changes; competition for loans and deposits and failure to attract or retain loans and deposits; fluctuations in interest rates and a decline in the level of our interest rate spread; risks of natural disasters related to our real estate portfolio; risks associated with Small Business Administration loans; failure to attract or retain key employees; changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums; ability to receive regulatory approval for Hanmi Bank to declare dividends to the Company; adequacy of our allowance for loan losses, credit quality and the effect of credit quality on our provision for credit losses and allowance for loan losses; changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements; our ability to successfully integrate acquisitions we may make; our ability to control expenses; and changes in securities markets. In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission (“SEC”), including attached as an Exhibit to a Current Report on Form 8-K filed with the SEC on June 18, 2010, and our most recent Quarterly Report on Form 10-Q,

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as well as current and periodic reports filed with the U.S. Securities and Exchange Commission hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.
Cautionary Statements
Future issuance of any securities relating to the Woori transaction has not been and will not be registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction or state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction or state.
Contact: Hanmi Financial Corporation
     
BRIAN E. CHO
  DAVID YANG
Chief Financial Officer
  Investor Relations Officer
(213) 368-3200
  (213) 637-4798

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HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Dollars in Thousands)
                                         
    December 31,     September 30,     %     December 31,     %  
    2010     2010     Change     2009     Change  
ASSETS
                                       
 
                                       
Cash and Due from Banks
  $ 60,983     $ 63,455       (3.9 )%   $ 55,263       10.4 %
Interest-Bearing Deposits in Other Banks
    158,737       218,843       (27.5 )%     98,847       60.6 %
Federal Funds Sold
    30,000                          
 
                             
 
                                       
Cash and Cash Equivalents
    249,720       282,298       (11.5 )%     154,110       62.0 %
 
                             
 
                                       
Investment Securities
    413,963       325,428       27.2 %     133,289       210.6 %
 
                                       
Loans:
                                       
Gross Loans, Net of Deferred Loan Fees
    2,267,126       2,394,291       (5.3 )%     2,819,060       (19.6 )%
Allowance for Loan Losses
    (146,059 )     (176,063 )     (17.0 )%     (144,996 )     0.7 %
 
                             
 
                                       
Loans Receivable, Net
    2,121,067       2,218,228       (4.4 )%     2,674,064       (20.7 )%
 
                             
 
                                       
Due from Customers on Acceptances
    711       1,375       (48.3 )%     994       (28.5 )%
Premises and Equipment, Net
    17,599       17,639       (0.2 )%     18,657       (5.7 )%
Accrued Interest Receivable
    8,048       8,442       (4.7 )%     9,492       (15.2 )%
Other Real Estate Owned, Net
    4,089       20,577       (80.1 )%     26,306       (84.5 )%
Deferred Income Taxes, Net
                      3,608        
Investment in FHLB and FRB Stock, at Cost
    34,731       35,201       (1.3 )%     30,697       13.1 %
Bank-Owned Life Insurance
    27,350       27,111       0.9 %     34,286       (20.2 )%
Income Taxes Receivable
    9,188       9,188             56,554       (83.8 )%
Other Assets
    20,682       23,018       (10.1 )%     20,649       0.2 %
 
                             
 
                                       
TOTAL ASSETS
  $ 2,907,148     $ 2,968,505       (2.1 )%   $ 3,162,706       (8.1 )%
 
                             
 
                                       
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                       
 
                                       
Liabilities:
                                       
Deposits:
                                       
Noninterest-Bearing
  $ 546,815     $ 559,764       (2.3 )%   $ 556,306       (1.7 )%
Interest-Bearing
    1,919,906       1,967,622       (2.4 )%     2,193,021       (12.5 )%
 
                             
 
                                       
Total Deposits
    2,466,721       2,527,386       (2.4 )%     2,749,327       (10.3 )%
 
                                       
Accrued Interest Payable
    15,966       13,727       16.3 %     12,606       26.7 %
Bank Acceptances Outstanding
    711       1,375       (48.3 )%     994       (28.5 )%
FHLB Advances and Other Borrowings
    155,220       156,292       (0.7 )%     155,725       (0.3 )%
Junior Subordinated Debentures
    82,406       82,406             82,406        
Accrued Expenses and Other Liabilities
    12,868       14,687       (12.4 )%     11,904       8.1 %
 
                             
 
                                       
Total Liabilities
    2,733,892       2,795,873       (2.2 )%     3,012,962       (9.3 )%
 
                                       
Stockholders’ Equity
    173,256       172,632       0.4 %     149,744       15.7 %
 
                             
 
                                       
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
  $ 2,907,148     $ 2,968,505       (2.1 )%   $ 3,162,706       (8.1 )%
 
                             

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HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(Dollars in Thousands, Except Per Share Data)
                                         
    Three Months Ended  
    December 31,     September 30,     %     December 31,     %  
    2010     2010     Change     2009     Change  
INTEREST AND DIVIDEND INCOME:
                                       
Interest and Fees on Loans
  $ 32,466     $ 33,681       (3.6 )%   $ 40,810       (20.4 )%
Taxable Interest on Investment Securities
    1,839       1,592       15.5 %     1,414       30.1 %
Tax-Exempt Interest on Investment Securities
    9       62       (85.5 )%     432       (97.9 )%
Interest on Interest-Bearing Deposits in Other Banks
    149       165       (9.7 )%     70       112.9 %
Dividends on FHLB and FRB Stock
    135       135             136       (0.7 )%
Interest on Federal Funds Sold
    15       40       (62.5 )%     95       (84.2 )%
 
                             
Total Interest and Dividend Income
    34,613       35,675       (3.0 )%     42,957       (19.4 )%
 
                             
INTEREST EXPENSE:
                                       
Interest on Deposits
    7,592       8,299       (8.5 )%     13,410       (43.4 )%
Interest on Junior Subordinated Debentures
    711       739       (3.8 )%     690       3.0 %
Interest on FHLB Advances and Other Borrowings
    339       364       (6.9 )%     412       (17.7 )%
 
                             
Total Interest Expense
    8,642       9,402       (8.1 )%     14,512       (40.4 )%
 
                             
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES
    25,971       26,273       (1.1 )%     28,445       (8.7 )%
Provision for Credit Losses
    5,000       22,000       (77.3 )%     77,000       (93.5 )%
 
                             
NET INTEREST INCOME (LOSS) AFTER PROVISION FOR CREDIT LOSSES
    20,971       4,273       390.8 %     (48,555 )     (143.2 )%
 
                             
NON-INTEREST INCOME:
                                       
Service Charges on Deposit Accounts
    3,279       3,442       (4.7 )%     4,022       (18.5 )%
Insurance Commissions
    1,122       1,089       3.0 %     1,062       5.6 %
Remittance Fees
    499       484       3.1 %     530       (5.8 )%
Trade Finance Fees
    379       381       (0.5 )%     439       (13.7 )%
Other Service Charges and Fees
    323       409       (21.0 )%     371       (12.9 )%
Bank-Owned Life Insurance Income
    239       237       0.8 %     237       0.8 %
Net Gain on Sales of Loans
    71       229       (69.0 )%     354       (79.9 )%
Net Gain on Sales of Investment Securities
    5       4       25.0 %     665       (99.2 )%
Impairment Loss on Investment Securities
          (790 )     (100.0 )%            
Other Operating Income
    136       186       (26.9 )%     159       (14.5 )%
 
                             
Total Non-Interest Income
    6,053       5,671       6.7 %     7,839       (22.8 )%
 
                             
NON-INTEREST EXPENSE:
                                       
Salaries and Employee Benefits
    9,381       9,552       (1.8 )%     8,442       11.1 %
Occupancy and Equipment
    2,672       2,702       (1.1 )%     2,733       (2.2 )%
Deposit Insurance Premiums and Regulatory Assessments
    2,204       2,253       (2.2 )%     2,998       (26.5 )%
Data Processing
    1,499       1,446       3.7 %     1,606       (6.7 )%
Other Real Estate Owned Expense
    681       2,580       (73.6 )%     873       (22.0 )%
Professional Fees
    680       753       (9.7 )%     1,354       (49.8 )%
Directors and Officers Liability Insurance
    716       716             293       144.4 %
Other Operating Expenses
    3,902       4,077       (4.3 )%     4,411       (11.5 )%
 
                             
Total Non-Interest Expense
    21,735       24,079       (9.7 )%     22,710       (4.3 )%
 
                             
INCOME (LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES
    5,289       (14,135 )     (137.4 )%     (63,426 )     (108.3 )%
Provision (Benefit) for Income Taxes
    (23 )     442       (105.2 )%     (27,545 )     (99.9 )%
 
                             
NET INCOME (LOSS)
  $ 5,312     $ (14,577 )     (136.4 )%   $ (35,881 )     (114.8 )%
 
                             
 
                                       
EARNINGS (LOSS) PER SHARE:
                                       
Basic
  $ 0.04     $ (0.12 )     (133.3 )%   $ (0.70 )     (105.7 )%
Diluted
  $ 0.04     $ (0.12 )     (133.3 )%   $ (0.70 )     (105.7 )%
 
                                       
WEIGHTED-AVERAGE SHARES OUTSTANDING:
                                       
Basic
    151,051,903       122,789,120               50,998,103          
Diluted
    151,197,503       122,789,120               50,998,103          
 
                                       
SHARES OUTSTANDING AT PERIOD-END
    151,198,390       151,198,390               51,182,390          

7


 

HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(Dollars in Thousands, Except Per Share Data)
                         
    Year Ended  
    December 31,     December 31,     %  
    2010     2009     Change  
INTEREST AND DIVIDEND INCOME:
                       
Interest and Fees on Loans
  $ 137,328     $ 173,318       (20.8 )%
Taxable Interest on Investment Securities
    5,874       5,675       3.5 %
Tax-Exempt Interest on Investment Securities
    225       2,303       (90.2 )%
Interest on Interest-Bearing Deposits in Other Banks
    468       151       209.9 %
Dividends on FHLB and FRB Stock
    532       656       (18.9 )%
Interest on Federal Funds Sold
    85       2,044       (95.8 )%
 
                 
Total Interest and Dividend Income
    144,512       184,147       (21.5 )%
 
                 
INTEREST EXPENSE:
                       
Interest on Deposits
    34,408       76,246       (54.9 )%
Interest on Junior Subordinated Debentures
    2,811       3,271       (14.1 )%
Interest on FHLB Advances and Other Borrowings
    1,419       3,401       (58.3 )%
 
                 
Total Interest Expense
    38,638       82,918       (53.4 )%
 
                 
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES
    105,874       101,229       4.6 %
Provision for Credit Losses
    122,496       196,387       (37.6 )%
 
                 
NET INTEREST INCOME (LOSS) AFTER PROVISION FOR CREDIT LOSSES
    (16,622 )     (95,158 )     (82.5 )%
 
                 
NON-INTEREST INCOME:
                       
Service Charges on Deposit Accounts
    14,049       17,054       (17.6 )%
Insurance Commissions
    4,695       4,492       4.5 %
Remittance Fees
    1,968       2,109       (6.7 )%
Trade Finance Fees
    1,523       1,956       (22.1 )%
Other Service Charges and Fees
    1,516       1,810       (16.2 )%
Bank-Owned Life Insurance Income
    942       932       1.1 %
Net Gain on Sales of Loans
    514       1,220       (57.9 )%
Net Gain on Sales of Investment Securities
    122       1,833       (93.3 )%
Impairment Loss on Investment Securities
    (790 )            
Other Operating Income
    867       704       23.2 %
 
                 
Total Non-Interest Income
    25,406       32,110       (20.9 )%
 
                 
NON-INTEREST EXPENSE:
                       
Salaries and Employee Benefits
    36,730       33,101       11.0 %
Occupancy and Equipment
    10,773       11,239       (4.1 )%
Deposit Insurance Premiums and Regulatory Assessments
    10,756       10,418       3.2 %
Data Processing
    5,931       6,297       (5.8 )%
Other Real Estate Owned Expense
    10,679       5,890       81.3 %
Professional Fees
    3,521       4,099       (14.1 )%
Directors and Officers Liability Insurance
    2,865       1,175       143.8 %
Other Operating Expenses
    15,550       18,135       (14.3 )%
 
                 
Total Non-Interest Expense
    96,805       90,354       7.1 %
 
                 
LOSS BEFORE BENEFIT FOR INCOME TAXES
    (88,021 )     (153,402 )     (42.6 )%
Benefit for Income Taxes
    (12 )     (31,125 )     (100.0 )%
 
                 
NET LOSS
  $ (88,009 )   $ (122,277 )     (28.0 )%
 
                 
 
                       
LOSS PER SHARE:
                       
Basic
  $ (0.93 )   $ (2.57 )     (63.8 )%
Diluted
  $ (0.93 )   $ (2.57 )     (63.8 )%
 
                       
WEIGHTED-AVERAGE SHARES OUTSTANDING:
                       
Basic
    94,322,222       47,570,361          
Diluted
    94,322,222       47,570,361          
 
                       
SHARES OUTSTANDING AT PERIOD-END
    151,198,390       51,182,390          

8


 

HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(UNAUDITED)
(Dollars in Thousands)
                                         
    Three Months Ended     Year Ended  
    December 31,     September 30,     December 31,     December 31,     December 31,  
    2010     2010     2009     2010     2009  
AVERAGE BALANCES:
                                       
Average Gross Loans, Net of Deferred Loan Fees
  $ 2,349,660     $ 2,456,883     $ 2,924,722     $ 2,544,472     $ 3,157,133  
Average Investment Securities
    350,954       223,709       182,635       215,280       188,325  
Average Interest-Earning Assets
    2,961,297       2,989,762       3,291,042       2,981,878       3,611,009  
Average Total Assets
    2,949,647       2,983,632       3,356,383       2,998,507       3,717,179  
Average Deposits
    2,512,893       2,559,116       2,914,794       2,587,686       3,109,322  
Average Borrowings
    237,702       239,992       244,704       243,690       341,514  
Average Interest-Bearing Liabilities
    2,186,920       2,238,036       2,598,520       2,268,954       2,909,014  
Average Stockholders’ Equity
    166,753       155,056       164,767       137,968       225,708  
Average Tangible Equity
    164,381       152,417       161,169       135,171       221,537  
 
                                       
PERFORMANCE RATIOS (Annualized):
                                       
Return on Average Assets
    0.71 %     (1.94 )%     (4.24 )%     (2.94 )%     (3.29 )%
Return on Average Stockholders’ Equity
    12.64 %     (37.30 )%     (86.40 )%     (63.79 )%     (54.17 )%
Return on Average Tangible Equity
    12.82 %     (37.94 )%     (88.33 )%     (65.11 )%     (55.19 )%
Efficiency Ratio
    67.87 %     75.38 %     62.59 %     73.74 %     67.76 %
Net Interest Spread (1)
    3.07 %     3.07 %     2.99 %     3.15 %     2.28 %
Net Interest Margin (1)
    3.48 %     3.49 %     3.46 %     3.55 %     2.84 %
 
                                       
ALLOWANCE FOR LOAN LOSSES:
                                       
Balance at Beginning of Period
  $ 176,063     $ 176,667     $ 124,768     $ 144,996     $ 70,986  
Provision Charged to Operating Expense
    5,245       20,700       77,540       122,955       196,607  
Charge-Offs, Net of Recoveries
    (35,249 )     (21,304 )     (57,312 )     (121,892 )     (122,597 )
 
                             
Balance at End of Period
  $ 146,059     $ 176,063     $ 144,996     $ 146,059     $ 144,996  
 
                             
 
                                       
Allowance for Loan Losses to Total Gross Loans
    6.44 %     7.35 %     5.14 %     6.44 %     5.14 %
Allowance for Loan Losses to Total Non-Performing Loans
    86.41 %     90.41 %     66.19 %     86.41 %     66.19 %
 
                                       
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS:
                                       
Balance at Beginning of Period
  $ 3,662     $ 2,362     $ 4,416     $ 3,876     $ 4,096  
Provision Charged to Operating Expense
    (245 )     1,300       (540 )     (459 )     (220 )
 
                             
Balance at End of Period
  $ 3,417     $ 3,662     $ 3,876     $ 3,417     $ 3,876  
 
                             
 
(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)
                         
    December 31,     September 30,     December 31,  
    2010     2010     2009  
NON-PERFORMING ASSETS:
                       
Non-Accrual Loans
  $ 169,028     $ 194,729     $ 219,000  
Loans 90 Days or More Past Due and Still Accruing
                67  
 
                 
Total Non-Performing Loans
    169,028       194,729       219,067  
Other Real Estate Owned, Net
    4,089       20,577       26,306  
 
                 
Total Non-Performing Assets
  $ 173,117     $ 215,306     $ 245,373  
 
                 
Total Non-Performing Loans/Total Gross Loans
    7.45 %     8.13 %     7.77 %
Total Non-Performing Assets/Total Assets
    5.95 %     7.25 %     7.76 %
Total Non-Performing Assets/Allowance for Loan Losses
    118.5 %     122.3 %     169.2 %
 
                       
DELINQUENT LOANS (Accrual Status)
  $ 21,457     $ 23,896     $ 41,218  
 
                 
Delinquent Loans (Accrual Status)/Total Gross Loans
    0.95 %     1.00 %     1.46 %
 
                       
LOAN PORTFOLIO:
                       
Real Estate Loans
  $ 856,527     $ 885,734     $ 1,043,097  
Commercial and Industrial Loans (2)
    1,360,865       1,456,163       1,714,212  
Consumer Loans
    50,300       53,237       63,303  
 
                 
Total Gross Loans
    2,267,692       2,395,134       2,820,612  
Deferred Loan Fees
    (566 )     (843 )     (1,552 )
 
                 
Gross Loans, Net of Deferred Loan Fees
    2,267,126       2,394,291       2,819,060  
Allowance for Loan Losses
    (146,059 )     (176,063 )     (144,996 )
 
                 
Loans Receivable, Net
  $ 2,121,067     $ 2,218,228     $ 2,674,064  
 
                 
 
                       
LOAN MIX:
                       
Real Estate Loans
    37.8 %     37.0 %     37.0 %
Commercial and Industrial Loans
    60.0 %     60.8 %     60.8 %
Consumer Loans
    2.2 %     2.2 %     2.2 %
 
                 
Total Gross Loans
    100.0 %     100.0 %     100.0 %
 
                 
 
                       
DEPOSIT PORTFOLIO:
                       
Demand — Noninterest-Bearing
  $ 546,815     $ 559,764     $ 556,306  
Savings
    113,968       119,824       111,172  
Money Market Checking and NOW Accounts
    402,481       422,564       685,858  
Time Deposits of $100,000 or More
    1,118,621       1,126,760       815,190  
Other Time Deposits
    284,836       298,474       580,801  
 
                 
Total Deposits
  $ 2,466,721     $ 2,527,386     $ 2,749,327  
 
                 
 
                       
DEPOSIT MIX:
                       
Demand — Noninterest-Bearing
    22.2 %     22.1 %     20.2 %
Savings
    4.6 %     4.7 %     4.0 %
Money Market Checking and NOW Accounts
    16.3 %     16.7 %     24.9 %
Time Deposits of $100,000 or More
    45.3 %     44.6 %     29.7 %
Other Time Deposits
    11.6 %     11.9 %     21.2 %
 
                 
Total Deposits
    100.0 %     100.0 %     100.0 %
 
                 
 
                       
CAPITAL RATIOS (Bank Only):
                       
Total Risk-Based
    12.23 %     11.61 %     9.07 %
Tier 1 Risk-Based
    10.91 %     10.28 %     7.77 %
Tier 1 Leverage
    8.55 %     8.26 %     6.69 %
Tangible equity ratio
    8.60 %     8.37 %     7.13 %
 
(2)   Commercial and industrial loans include owner-occupied property loans of $894.8 million, $967.9 million and $1.12 billion as of December 31, 2010, September 30, 2010, and December 31, 2009, respectively.

10


 

HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(UNAUDITED)
(Dollars in Thousands)
                                                                         
    Three Months Ended  
    December 31, 2010     September 30, 2010     December 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
  $ 746,868     $ 10,144       5.39 %   $ 773,589     $ 10,638       5.46 %   $ 861,831     $ 11,872       5.47 %
Construction
    66,221       416       2.49 %     71,545       862       4.78 %     130,400       1,342       4.08 %
Residential Property
    63,716       747       4.65 %     67,291       805       4.75 %     80,257       997       4.93 %
 
                                                     
Total Real Estate Loans
    876,805       11,307       5.12 %     912,425       12,305       5.35 %     1,072,488       14,211       5.26 %
Commercial and Industrial Loans (1)
    1,421,369       20,435       5.70 %     1,490,811       20,611       5.49 %     1,787,795       25,472       5.65 %
Consumer Loans
    52,251       660       5.01 %     54,469       690       5.03 %     66,074       965       5.79 %
 
                                                     
Total Gross Loans
    2,350,425       32,402       5.47 %     2,457,705       33,606       5.42 %     2,926,357       40,648       5.51 %
Prepayment Penalty Income
          64                   75                   162        
Unearned Income on Loans, Net of Costs
    (765 )                 (823 )                 (1,635 )            
 
                                                     
Gross Loans, Net
    2,349,660       32,466       5.48 %     2,456,882       33,681       5.44 %     2,924,722       40,810       5.54 %
 
                                                     
 
                                                                       
Investment Securities:
                                                                       
Municipal Bonds (2)
    21,182       203       3.83 %     6,301       95       6.03 %     41,653       665       6.39 %
U.S. Government Agency Securities
    84,904       389       1.83 %     92,690       620       2.68 %     36,500       437       4.79 %
Mortgage-Backed Securities
    107,764       467       1.73 %     63,439       537       3.39 %     77,354       738       3.82 %
Collateralized Mortgage Obligations
    108,491       550       2.03 %     45,747       300       2.62 %     14,312       143       4.00 %
Corporate Bonds
    16,151       135       3.34 %     3,130       30       3.83 %     286             0.00 %
Other Securities
    12,462       110       3.53 %     12,402       103       3.32 %     12,530       97       3.10 %
 
                                                     
Total Investment Securities (2)
    350,954       1,854       2.11 %     223,709       1,685       3.01 %     182,635       2,080       4.56 %
 
                                                     
 
                                                                       
Other Interest-Earning Assets:
                                                                       
Equity Securities
    35,883       135       1.50 %     36,568       135       1.48 %     40,605       136       1.34 %
Federal Funds Sold and Securities Purchased Under Resale Agreements
    8,239       11       0.53 %     6,932       8       0.46 %     51,713       65       0.50 %
Term Federal Funds Sold
    3,043       4       0.53 %     22,880       32       0.56 %     8,500       30       1.41 %
Interest-Bearing Deposits in Other Banks
    213,518       149       0.28 %     242,790       165       0.27 %     82,867       70       0.34 %
 
                                                     
Total Other Interest-Earning Assets
    260,683       299       0.46 %     309,170       340       0.44 %     183,685       301       0.66 %
 
                                                     
 
                                                                       
TOTAL INTEREST-EARNING ASSETS (2)
  $ 2,961,297     $ 34,619       4.64 %   $ 2,989,761     $ 35,706       4.74 %   $ 3,291,042     $ 43,191       5.21 %
 
                                                     
 
                                                                       
INTEREST-BEARING LIABILITIES
                                                                       
 
                                                                       
Interest-Bearing Deposits:
                                                                       
Savings
  $ 116,220     $ 804       2.74 %   $ 122,122     $ 889       2.89 %   $ 104,068     $ 711       2.71 %
Money Market Checking and NOW Accounts
    414,773       1,003       0.96 %     429,601       1,094       1.01 %     733,063       3,508       1.90 %
Time Deposits of $100,000 or More
    1,127,027       4,736       1.67 %     1,133,970       5,059       1.77 %     835,726       4,930       2.34 %
Other Time Deposits
    291,198       1,049       1.43 %     312,351       1,257       1.60 %     680,959       4,261       2.48 %
 
                                                     
Total Interest-Bearing Deposits
    1,949,218       7,592       1.55 %     1,998,044       8,299       1.65 %     2,353,816       13,410       2.26 %
 
                                                     
 
                                                                       
Borrowings:
                                                                       
FHLB Advances
    153,693       339       0.88 %     153,777       342       0.88 %     160,754       412       1.02 %
Other Borrowings
    1,603             0.00 %     3,809       22       2.29 %     1,544             0.00 %
Junior Subordinated Debentures
    82,406       711       3.42 %     82,406       739       3.56 %     82,406       690       3.32 %
 
                                                     
Total Borrowings
    237,702       1,050       1.75 %     239,992       1,103       1.82 %     244,704       1,102       1.79 %
 
                                                     
 
                                                                       
TOTAL INTEREST-BEARING LIABILITIES
  $ 2,186,920     $ 8,642       1.57 %   $ 2,238,036     $ 9,402       1.67 %   $ 2,598,520     $ 14,512       2.22 %
 
                                                     
 
                                                                       
NET INTEREST INCOME (2)
          $ 25,977                     $ 26,304                     $ 28,679          
 
                                                                 
 
                                                                       
NET INTEREST SPREAD (2)
                    3.07 %                     3.07 %                     2.99 %
 
                                                                 
 
                                                                       
NET INTEREST MARGIN (2)
                    3.48 %                     3.49 %                     3.46 %
 
                                                                 
 
(1)   Commercial and industrial loans include owner-occupied commercial real etate loans
 
(2)   Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.

11


 

HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID
(UNAUDITED)
(Dollars in Thousands)
                                                 
    Year Ended  
    December 31, 2010     December 31, 2009  
            Interest     Average             Interest     Average  
    Average     Income/     Yield/     Average     Income/     Yield/  
    Balance     Expense     Rate     Balance     Expense     Rate  
INTEREST-EARNING ASSETS
                                               
 
                                               
Loans:
                                               
Real Estate Loans:
                                               
Commercial Property
  $ 791,622     $ 42,507       5.37 %   $ 894,408     $ 49,901       5.58 %
Construction
    82,827       3,618       4.37 %     156,619       5,947       3.80 %
Residential Property
    68,723       3,267       4.75 %     85,228       4,329       5.08 %
 
                                   
Total Real Estate Loans
    943,172       49,392       5.24 %     1,136,255       60,177       5.30 %
Commercial and Industrial Loans (1)
    1,546,115       84,765       5.48 %     1,947,669       108,346       5.56 %
Consumer Loans
    56,121       2,937       5.23 %     74,700       4,310       5.77 %
 
                                   
Total Gross Loans
    2,545,408       137,094       5.39 %     3,158,624       172,833       5.47 %
Prepayment Penalty Income
          234                   485        
Unearned Income on Loans, Net of Costs
    (936 )                 (1,491 )            
 
                                   
Gross Loans, Net
    2,544,472       137,328       5.40 %     3,157,133       173,318       5.49 %
 
                                   
 
                                               
Investment Securities:
                                               
Municipal Bonds (2)
    10,655       535       5.02 %     54,448       3,543       6.51 %
U.S. Government Agency Securities
    69,112       1,952       2.82 %     24,417       1,108       4.54 %
Mortgage-Backed Securities
    72,985       2,071       2.84 %     77,627       3,320       4.28 %
Collateralized Mortgage Obligations
    45,245       1,092       2.41 %     21,365       879       4.11 %
Corporate Bonds
    4,860       165       3.40 %     271             0.00 %
Other Securities
    12,423       405       3.26 %     10,197       369       3.62 %
 
                                   
Total Investment Securities (2)
    215,280       6,220       2.89 %     188,325       9,219       4.90 %
 
                                   
 
                                               
Other Interest-Earning Assets:
                                               
Equity Securities
    37,437       532       1.42 %     41,399       656       1.58 %
Federal Funds Sold and Securities Purchased Under Resale Agreements
    10,346       52       0.50 %     84,363       326       0.39 %
Term Federal Funds Sold
    8,342       33       0.40 %     95,822       1,718       1.79 %
Interest-Bearing Deposits in Other Banks
    166,001       468       0.28 %     43,967       151       0.34 %
 
                                   
Total Other Interest-Earning Assets
    222,126       1,085       0.49 %     265,551       2,851       1.07 %
 
                                   
 
                                               
TOTAL INTEREST-EARNING ASSETS (2)
  $ 2,981,878     $ 144,633       4.85 %   $ 3,611,009     $ 185,388       5.13 %
 
                                   
 
                                               
INTEREST-BEARING LIABILITIES
                                               
 
                                               
Interest-Bearing Deposits:
                                               
Savings
  $ 119,754     $ 3,439       2.87 %   $ 91,089     $ 2,328       2.56 %
Money Market Checking and NOW Accounts
    464,864       4,936       1.06 %     507,619       9,786       1.93 %
Time Deposits of $100,000 or More
    1,069,600       19,529       1.83 %     1,051,994       34,807       3.31 %
Other Time Deposits
    371,046       6,504       1.75 %     916,798       29,325       3.20 %
 
                                   
Total Interest-Bearing Deposits
    2,025,264       34,408       1.70 %     2,567,500       76,246       2.97 %
 
                                   
 
                                               
Borrowings:
                                               
FHLB Advances
    158,531       1,366       0.86 %     257,529       3,399       1.32 %
Other Borrowings
    2,753       53       1.93 %     1,579       2       0.13 %
Junior Subordinated Debentures
    82,406       2,811       3.41 %     82,406       3,271       3.97 %
 
                                   
Total Borrowings
    243,690       4,230       1.74 %     341,514       6,672       1.95 %
 
                                   
 
                                               
TOTAL INTEREST-BEARING LIABILITIES
  $ 2,268,954     $ 38,638       1.70 %   $ 2,909,014     $ 82,918       2.85 %
 
                                   
 
                                               
NET INTEREST INCOME (2)
          $ 105,995                     $ 102,470          
 
                                           
 
                                               
NET INTEREST SPREAD (2)
                    3.15 %                     2.28 %
 
                                           
 
                                               
NET INTEREST MARGIN (2)
                    3.55 %                     2.84 %
 
                                           
 
(1)   Commercial and industrial loans include owner-occupied commercial real etate loans
 
(2)   Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.

12