EXHIBIT 99.1
HANMI FINANCIAL CORPORATION REPORTS
NET INCOME OF $15.3 MILLION FOR SECOND QUARTER OF 2007
     LOS ANGELES – July 26, 2007 – Hanmi Financial Corporation (NASDAQ:HAFC), the holding company for Hanmi Bank, reported that for the three months ended June 30, 2007, it earned net income of $15.3 million, an increase of 17.4 percent compared to net income of $13.1 million in the first quarter of 2007. Earnings per share were $0.31 (diluted), an increase of 19.2 percent compared to $0.26 per share (diluted) for the first quarter of 2007.
     “The sequential increase of $2.2 million in net income — to $15.3 million from $13.1 million in the prior quarter — points to continuing solid performance in our core operations, including a loan portfolio that grew by $191.0 million, or 6.7 percent, since the beginning of the year,” said Sung Won Sohn, Ph.D., President and Chief Executive Officer. “It points as well to the quality of the loan portfolio and the fact that the second-quarter provision for credit losses was only $3.0 million compared to $6.1 million in the first quarter.”
     “We grew our net interest income before provision for credit losses by $525,000, or 1.4 percent, compared to the first quarter, despite a modest decline in the net interest margin to 4.51 percent from 4.61 percent,” added Dr. Sohn. “This illustrates the state of the markets we serve, particularly the Southern California commercial real estate market: they present numerous business opportunities, but at the same time remain fiercely competitive.”
     “We anticipate that this competition — which is coming from mainstream banks as well as other Korean-American banks — will in the near term continue to put pressure on margins. With that understood,” concluded Dr. Sohn, “the message I would leave with investors is that while we will continue to focus on growth in assets and net interest income, our foremost concern will continue to be credit quality.”
SECOND-QUARTER HIGHLIGHTS
•   Net interest income before provision for credit losses was $38.6 million for the second quarter of 2007, compared to $38.1 million for the first quarter of 2007 and $38.4 million for the second quarter of 2006, reflecting a 2.4 percent and 7.8 percent, respectively, sequential increase in average interest-earning assets. Net interest margin for the second quarter of 2007 was 4.51 percent, compared to 4.61 percent for the first quarter of 2007 and 4.84 percent for the second quarter of 2006.
•   The loan portfolio increased by $191.0 million, or 6.7 percent, to $3.06 billion at June 30, 2007, compared to $2.86 billion at December 31, 2006, reflecting continued growth in commercial and industrial loans.
•   Non-performing loans increased by $3.1 million to $22.6 million, or 0.74 percent of the portfolio, at June 30, 2007, compared to $19.5 million, or 0.67 percent of the portfolio, at March 31, 2007. Loans over 30 days delinquent decreased from $37.3 million at March 31, 2007 to $32.0 million at June 30, 2007.
•   The provision for credit losses was $3.0 million for the second quarter of 2007, compared to $6.1 million for the first quarter of 2007 and $900,000 for the second quarter of 2006.
•   The allowance for loan losses was 1.05 percent, 1.08 percent and 0.98 percent of the gross loan portfolio at June 30, 2007, March 31, 2007 and June 30, 2006, respectively.
•   During the second quarter, the Company repurchased 923,800 of its shares at a cost of $15.9 million, or $17.19 per share.

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NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES
     Net interest income before provision for credit losses was $38.6 million for the second quarter of 2007, an increase of $525,000, or 1.4 percent, compared to $38.1 million for the first quarter of 2007, and an increase of $193,000, or 0.5 percent, compared to $38.4 million for the second quarter of 2006.
     The yield on the loan portfolio was 8.68 percent for the second quarter of 2007, a decrease of 12 basis points compared to 8.80 percent for the first quarter of 2007, and an increase of 3 basis points compared to 8.65 percent for the second quarter of 2006. The yield on investment securities was 4.40 percent for the second quarter of 2007, a decrease of 4 basis points compared to 4.44 percent for the first quarter of 2007, and the same as the second quarter of 2006.
     The yield on average interest-earning assets was 8.17 percent for the second quarter of 2007, a decrease of 6 basis points compared to 8.23 percent for the first quarter of 2007, and an increase of 11 basis points compared to 8.06 percent for the second quarter of 2006. The cost of interest-bearing liabilities was 4.92 percent for the second quarter of 2007, an increase of 5 basis points compared to 4.87 percent for the first quarter of 2007, and an increase of 55 basis points compared to 4.37 percent for the second quarter of 2006, as the competitive deposit rate environment continued to stabilize.
PROVISION FOR CREDIT LOSSES
     The provision for credit losses was $3.0 million for the second quarter of 2007, compared to $6.1 million for the first quarter of 2007 and $900,000 for the same quarter last year. In the second quarter of 2007, net charge-offs were $2.5 million, compared to $2.4 million for the first quarter of 2007 and $353,000 for the same quarter last year.
     The sequential decrease in the provision for credit losses is attributable primarily to decreased migration of loans into the Company’s more adverse risk rating categories and the resolution of certain non-performing loans in the second quarter.
     The sequential decrease in the provision for credit losses also reflects a reduced rate of increase in non-performing assets, which increased $4.2 million in the second quarter to a balance of $23.7 million at June 30, 2007, compared to an increase of $5.3 million to a balance of $19.5 million at March 31, 2007. Delinquent loans decreased to $32.0 million, or 1.05 percent of gross loans, at June 30, 2007 from $37.3 million, or 1.28 percent of gross loans, at March 31, 2007. While the level of non-performing assets and delinquent loans are indicators of the credit quality of the portfolio, the provision for credit losses is determined primarily on the basis of loan classifications and the Company’s historical loss experience with similarly situated credits.
NON-INTEREST INCOME
     Non-interest income increased by $705,000, or 7.1 percent, to $10.7 million for the second quarter of 2007, compared to $10.0 million for the first quarter of 2007, and increased by $2.0 million, or 23.4 percent, compared to $8.7 million for the second quarter of 2006. The increases in non-interest income are primarily attributable to increases in the amount of gain on sales of loans and increased insurance commissions as a result of the acquisition of two insurance agencies in the first quarter of 2007.
NON-INTEREST EXPENSES
     Non-interest expenses increased by $521,000, or 2.5 percent, to $21.5 million for the second quarter of 2007, compared to $21.0 million for the first quarter of 2007, and increased by $1.7 million, or 8.6 percent, compared to $19.8 million for the second quarter of 2006. Salaries and employee benefits decreased $979,000, or 8.3 percent, sequentially from $11.8 million for the quarter ended March 31, 2007 to $10.8 million for the quarter ended June 30, 2007 because of decreased accruals for incentive compensation. In addition, a larger percentage of payroll costs were capitalized as direct loan origination costs, as a result of higher loan volume, and the employer’s portion of payroll taxes decreased. Other operating expenses increased $648,000, or 23.2 percent, sequentially from $2.8 million for the quarter ended March 31, 2007 to $3.4 million for the quarter ended June 30, 2007 as the Company incurred increased deposit operations losses and increased the amortization and write-downs of loan servicing assets.

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     The efficiency ratio (non-interest expenses divided by the sum of net interest income before provision for credit losses and non-interest income) for the second quarter of 2007 was 43.61 percent, compared to 43.64 percent for the first quarter of 2007 and 42.06 percent for the second quarter of 2006, reflecting the acquisitions of two insurance agencies in the first quarter of 2007.
PROVISION FOR INCOME TAXES
     The provision for income taxes reflects a 38.1 percent effective tax rate for the second quarter of 2007, compared to a 37.7 percent effective tax rate for the first quarter of 2007 and a 39.5 percent effective tax rate for the second quarter of 2006. The periodic effective tax rates reflect a stable level of Enterprise Zone and low-income housing tax credits in periods in which there were fluctuations in taxable income.
FINANCIAL POSITION
     Total assets were $3.87 billion at June 30, 2007, an increase of $145.7 million, or 3.9 percent, compared to $3.73 billion at December 31, 2006, and an increase of $247.2 million, or 6.8 percent, from the June 30, 2006 balance of $3.62 billion.
     At June 30, 2007, net loans totaled $3.02 billion, an increase of $186.3 million, or 6.6 percent, from $2.84 billion at December 31, 2006. Real estate loans increased by $21.1 million, or 2.0 percent, to $1.06 billion at June 30, 2007, compared to $1.04 billion at December 31, 2006, and commercial and industrial loans grew by $171.7 million, or 9.9 percent, to $1.90 billion at June 30, 2007, compared to $1.73 billion at December 31, 2006.
     The growth in total assets was funded primarily by an increase in FHLB advances and other borrowings of $109.7 million, up 64.9 percent to $278.8 million at June 30, 2007, compared to $169.0 million at December 31, 2006. In addition, deposits increased $28.4 million, up 1.0 percent to $2.97 billion at June 30, 2007 from $2.94 billion at December 31, 2006. The increase in deposits included increases in time deposits of $100,000 or more of $24.9 million, up 1.8 percent to $1.41 billion, in other time deposits of $13.2 million, up 4.5 percent to $308.7 million, and in money market checking accounts of $706,000, up 0.2 percent to $439.0 million, partially offset by decreases in noninterest-bearing demand deposits of $8.1 million, down 1.1 percent to $720.2 million, and in savings accounts of $2.2 million, down 2.3 percent to $97.0 million.
ASSET QUALITY
     Total non-performing assets, including loans 90 days or more past due and still accruing, non-accrual loans and other real estate owned (“OREO”) assets, increased by $9.5 million to $23.7 million at June 30, 2007 from $14.2 million at December 31, 2006, and increased by $11.6 million from $12.1 million at June 30, 2006. Non-performing loans as a percentage of gross loans increased to 0.74 percent at June 30, 2007 from 0.50 percent at December 31, 2006 and 0.43 percent at June 30, 2006.
     At June 30, 2007, delinquent loans were $32.0 million, or 1.05 percent of gross loans, compared to $19.6 million, or 0.68 percent of gross loans, at December 31, 2006, and $23.1 million, or 0.83 percent of gross loans, at June 30, 2006.
     At June 30, 2007, the Company maintained an allowance for loan losses of $32.2 million and a liability for off-balance sheet exposure, primarily unfunded loan commitments, of $1.7 million. The allowance for loan losses represented 1.05 percent of gross loans at June 30, 2007, compared to 0.96 percent and 0.98 percent at December 31, 2006 and June 30, 2006, respectively. As of June 30, 2007, the allowance for loan losses was 142.3 percent of non-performing loans, compared to 193.9 percent at December 31, 2006 and 224.5 percent at June 30, 2006.

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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 23 full-service offices in Los Angeles, Orange, San Francisco, Santa Clara and San Diego counties, and nine loan production offices in California, Colorado, Georgia, Illinois, Texas, Virginia and Washington. Hanmi Bank specializes in commercial, SBA, trade finance and consumer lending, and is a recognized community leader. Hanmi Bank’s mission is to provide a full range of quality products and premier services to its customers and to maximize shareholder value. Additional information is available at www.hanmifinancial.com.
FORWARD-LOOKING STATEMENTS
     This release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statement. These factors include the following: general economic and business conditions in those areas in which we operate; demographic changes; competition for loans and deposits; fluctuations in interest rates; risks of natural disasters related to our real estate portfolio; risks associated with SBA loans; changes in governmental regulation; credit quality; our ability to successfully integrate acquisitions we may make; the availability of capital to fund the expansion of our business; and changes in securities markets. In addition, we set forth certain risks in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2006, 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.
CONTACT
         
 
  Hanmi Financial Corporation    
 
 
  Michael J. Winiarski   Stephanie Yoon
 
  Chief Financial Officer   Investor Relations
 
  (213) 368-3200   (213) 427-5631

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HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
                                         
    June 30,     December 31,     %     June 30,     %  
    2007     2006     Change     2006     Change  
ASSETS
                                        
Cash and Due from Banks
   $ 98,020     $ 97,501       0.5 %   $ 110,271       (11.1 )%
Federal Funds Sold
     23,800       41,000       (42.0 )%     1,100       2,063.6 %
 
                              
Cash and Cash Equivalents
     121,820       138,501       (12.0 )%     111,371       9.4 %
 
                              
Term Federal Funds Sold
     —       5,000       (100.0 )%     —       —  
Investment Securities
     364,732       391,579       (6.9 )%     410,050       (11.1 )%
Loans:
                                        
Loans, Net of Deferred Loan Fees
     3,055,921       2,864,947       6.7 %     2,787,970       9.6 %
Allowance for Loan Losses
     (32,190 )     (27,557 )     16.8 %     (27,250 )     18.1 %
 
                              
Net Loans
     3,023,731       2,837,390       6.6 %     2,760,720       9.5 %
 
                              
Customers’ Liability on Acceptances
     12,753       8,403       51.8 %     11,057       15.3 %
Premises and Equipment, Net
     20,361       20,075       1.4 %     20,312       0.2 %
Accrued Interest Receivable
     17,313       16,919       2.3 %     14,899       16.2 %
Other Real Estate Owned
     1,080       —       —       —       —  
Deferred Income Taxes
     13,742       13,064       5.2 %     11,681       17.6 %
Servicing Asset
     4,417       4,579       (3.5 )%     4,302       2.7 %
Goodwill
     209,941       207,646       1.1 %     207,646       1.1 %
Other Intangible Assets
     8,027       6,312       27.2 %     7,461       7.6 %
Federal Reserve Bank and Federal Home Loan Bank Stock
     25,352       24,922       1.7 %     24,603       3.0 %
Bank-Owned Life Insurance
     24,051       23,592       1.9 %     23,146       3.9 %
Other Assets
     23,577       27,261       (13.5 )%     16,401       43.8 %
 
                              
Total Assets
   $ 3,870,897     $ 3,725,243       3.9 %   $ 3,623,649       6.8 %
 
                              
 
                                        
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                        
Liabilities:
                                        
Deposits:
                                        
Noninterest-Bearing
   $ 720,214     $ 728,348       (1.1 )%   $ 778,445       (7.5 )%
Interest-Bearing
     2,252,932       2,216,367       1.6 %     2,116,567       6.4 %
 
                              
Total Deposits
     2,973,146       2,944,715       1.0 %     2,895,012       2.7 %
Accrued Interest Payable
     23,343       22,582       3.4 %     15,319       52.4 %
Acceptances Outstanding
     12,753       8,403       51.8 %     11,057       15.3 %
FHLB Advances and Other Borrowings
     278,784       169,037       64.9 %     156,872       77.7 %
Junior Subordinated Debentures
     82,406       82,406       —       82,406       —  
Other Liabilities
     14,431       10,983       31.4 %     12,253       17.8 %
 
                              
Total Liabilities
     3,384,863       3,238,126       4.5 %     3,172,919       6.7 %
Shareholders’ Equity
     486,034       487,117       (0.2 )%     450,730       7.8 %
 
                              
Total Liabilities and Shareholders’ Equity
   $ 3,870,897     $ 3,725,243       3.9 %   $ 3,623,649       6.8 %
 
                              

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HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in Thousands, Except Per Share Data)
                                                                 
    For the Three Months Ended     For the Six Months Ended  
    June 30,     March 31,     %     June 30,     %     June 30,     June 30,     %  
    2007     2007     Change     2006     Change     2007     2006     Change  
INTEREST INCOME:
                                                                
Interest and Fees on Loans
   $ 65,212     $ 62,561       4.2 %   $ 58,870       10.8 %   $ 127,773     $ 112,017       14.1 %
Interest on Investments
     4,472       4,664       (4.1 )%     5,013       (10.8 )%     9,136       10,112       (9.7 )%
Interest on Federal Funds Sold
     176       726       (75.8 )%     23       665.2 %     902       312       189.1 %
Interest on Term Federal Funds Sold
     —       5       (100.0 )%     —       —       5       —       —  
 
                                                
Total Interest Income
     69,860       67,956       2.8 %     63,906       9.3 %     137,816       122,441       12.6 %
 
                                                
INTEREST EXPENSE:
                                                                
Interest on Deposits
     26,691       26,081       2.3 %     21,921       21.8 %     52,772       41,512       27.1 %
Interest on FHLB Advances and Other Borrowings
     2,919       2,171       34.5 %     2,001       45.9 %     5,090       2,615       94.6 %
Interest on Junior Subordinated Debentures
     1,660       1,639       1.3 %     1,587       4.6 %     3,299       3,062       7.7 %
 
                                                
Total Interest Expense
     31,270       29,891       4.6 %     25,509       22.6 %     61,161       47,189       29.6 %
 
                                                
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES
     38,590       38,065       1.4 %     38,397       0.5 %     76,655       75,252       1.9 %
Provision for Credit Losses
     3,023       6,132       (50.7 )%     900       235.9 %     9,155       3,860       137.2 %
 
                                                
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES
     35,567       31,933       11.4 %     37,497       (5.1 )%     67,500       71,392       (5.5 )%
 
                                                
NON-INTEREST INCOME:
                                                                
Service Charges on Deposit Accounts
     4,438       4,488       (1.1 )%     4,183       6.1 %     8,926       8,414       6.1 %
Insurance Commissions
     1,279       1,125       13.7 %     243       426.3 %     2,404       396       507.1 %
Trade Finance Fees
     1,177       1,290       (8.8 )%     1,116       5.5 %     2,467       2,187       12.8 %
Remittance Fees
     520       471       10.4 %     532       (2.3 )%     991       1,020       (2.8 )%
Other Service Charges and Fees
     574       616       (6.8 )%     614       (6.5 )%     1,190       1,148       3.7 %
Bank-Owned Life Insurance Income
     229       230       (0.4 )%     215       6.5 %     459       433       6.0 %
Increase in Fair Value of Derivatives
     222       92       141.3 %     109       103.7 %     314       334       (6.0 )%
Other Income
     491       275       78.5 %     345       42.3 %     766       626       22.4 %
Gain on Sales of Loans
     1,762       1,400       25.9 %     1,311       34.4 %     3,162       2,150       47.1 %
Gain on Sales of Securities Available for Sale
     —       —       —       —       —       —       5       (100.0 )%
 
                                                
Total Non-Interest Income
     10,692       9,987       7.1 %     8,668       23.4 %     20,679       16,713       23.7 %
 
                                                
NON-INTEREST EXPENSES:
                                                                
Salaries and Employee Benefits
     10,782       11,761       (8.3 )%     10,691       0.9 %     22,543       19,852       13.6 %
Occupancy and Equipment
     2,571       2,512       2.3 %     2,670       (3.7 )%     5,083       4,876       4.2 %
Data Processing
     1,665       1,563       6.5 %     1,218       36.7 %     3,228       2,647       21.9 %
Advertising and Promotion
     889       661       34.5 %     811       9.6 %     1,550       1,457       6.4 %
Supplies and Communications
     704       588       19.7 %     576       22.2 %     1,292       1,212       6.6 %
Professional Fees
     647       474       36.5 %     492       31.5 %     1,121       1,160       (3.4 )%
Amortization of Other Intangible Assets
     592       614       (3.6 )%     605       (2.1 )%     1,206       1,230       (2.0 )%
Decrease in Fair Value of Embedded Option
     196       —       —       112       75.0 %     196       214       (8.4 )%
Other Operating Expenses
     3,444       2,796       23.2 %     2,622       31.4 %     6,240       4,889       27.6 %
 
                                                
Total Non-Interest Expenses
     21,490       20,969       2.5 %     19,797       8.6 %     42,459       37,537       13.1 %
 
                                                
INCOME BEFORE PROVISION FOR INCOME TAXES
     24,769       20,951       18.2 %     26,368       (6.1 )%     45,720       50,568       (9.6 )%
Provision for Income Taxes
     9,446       7,896       19.6 %     10,428       (9.4 )%     17,342       19,826       (12.5 )%
 
                                                
NET INCOME
   $ 15,323     $ 13,055       17.4 %   $ 15,940       (3.9 )%   $ 28,378     $ 30,742       (7.7 )%
 
                                                
 
                                                                
EARNINGS PER SHARE:
                                                                
Basic
   $ 0.32     $ 0.27       18.5 %   $ 0.33       (3.0 )%   $ 0.58     $ 0.63       (7.9 )%
Diluted
   $ 0.31     $ 0.26       19.2 %   $ 0.32       (3.1 )%   $ 0.58     $ 0.62       (6.5 )%
WEIGHTED-AVERAGE SHARES OUTSTANDING:
                                                                
Basic
     48,397,824       48,962,089               48,822,729               48,678,399       48,768,881          
Diluted
     48,737,574       49,500,312               49,404,204               49,110,835       49,366,709          
SHARES OUTSTANDING AT PERIOD-END
     47,950,929       48,825,537               48,908,580               47,950,929       48,908,580          

- 6 -

 

HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in Thousands)
                                                                 
    For the Three Months Ended     For the Six Months Ended  
    June 30,     March 31,     %     June 30,     %     June 30,     June 30,     %  
    2007     2007     Change     2006     Change     2007     2006     Change  
AVERAGE BALANCES:
                                                                
Average Gross Loans, Net of Deferred Loan Fees
   $ 3,014,895     $ 2,882,632       4.6 %   $ 2,729,218       10.5 %   $ 2,949,129     $ 2,638,822       11.8 %
Average Investment Securities
     375,598       386,688       (2.9 )%     425,371       (11.7 )%     381,113       431,440       (11.7 )%
Average Interest-Earning Assets
     3,429,123       3,350,245       2.4 %     3,180,999       7.8 %     3,414,585       3,109,051       9.8 %
Average Total Assets
     3,818,170       3,740,936       2.1 %     3,570,389       6.9 %     3,780,147       3,497,310       8.1 %
Average Deposits
     2,967,748       2,945,386       0.8 %     2,832,218       4.8 %     2,956,629       2,821,648       4.8 %
Average Borrowings
     304,744       251,594       21.1 %     248,480       22.6 %     278,316       193,691       43.7 %
Average Interest-Bearing Liabilities
     2,551,665       2,487,429       2.6 %     2,341,481       9.0 %     2,519,725       2,278,944       10.6 %
Average Shareholders’ Equity
     495,719       495,832       —       449,664       10.2 %     497,444       443,507       12.2 %
Average Tangible Equity
     277,414       276,918       0.2 %     232,802       19.2 %     277,778       226,645       22.6 %
 
                                                                
PERFORMANCE RATIOS:
                                                                
Return on Average Assets
     1.61 %     1.42 %             1.79 %             1.51 %     1.77 %        
Return on Average Shareholders’ Equity
     12.40 %     10.68 %             14.22 %             11.50 %     13.98 %        
Return on Average Tangible Equity
     22.15 %     19.12 %             27.46 %             20.60 %     27.35 %        
Efficiency Ratio
     43.61 %     43.64 %             42.06 %             43.62 %     40.82 %        
Net Interest Margin
     4.51 %     4.61 %             4.84 %             4.53 %     4.88 %        
 
                                                                
ALLOWANCE FOR LOAN LOSSES:
                                                                
Balance at the Beginning of Period
   $ 31,527     $ 27,557       14.4 %   $ 26,703       18.1 %   $ 27,557     $ 24,963       10.4 %
Provision Charged to Operating Expense
     3,181       6,374       (50.1 )%     900       253.4 %     9,555       3,860       147.5 %
Charge-Offs, Net of Recoveries
     (2,518 )     (2,404 )     4.7 %     (353 )     613.3 %     (4,922 )     (1,573 )     212.9 %
 
                                                
Balance at the End of Period
   $ 32,190     $ 31,527       2.1 %   $ 27,250       18.1 %   $ 32,190     $ 27,250       18.1 %
 
                                                
Allowance for Loan Losses to Total Gross Loans
     1.05 %     1.08 %             0.98 %             1.05 %     0.98 %        
Allowance for Loan Losses to Total Non-Performing Loans
     142.30 %     161.55 %             224.54 %             142.30 %     224.54 %        
 
                                                                
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS:
                                                                
Balance at the Beginning of Period
   $ 1,888     $ 2,130       (11.4 )%   $ 2,130       (11.4 )%   $ 2,130     $ 2,130       —
Provision Charged to Operating Expense
     (158 )     (242 )     (34.7 )%     —       —       (400 )     —       —  
 
                                                
Balance at the End of Period
   $ 1,730     $ 1,888       (8.4 )%   $ 2,130       (18.8 )%   $ 1,730     $ 2,130       (18.8 )%
 
                                                

- 7 -

 

HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED) (Continued)
(Dollars in Thousands)
                                         
    June 30,     December 31,     %     June 30,     %  
    2007     2006     Change     2006     Change  
NON-PERFORMING ASSETS:
                                        
Non-Accrual Loans
   $ 22,442     $ 14,213       57.9 %   $ 12,001       87.0 %
Loans 90 Days or More Past Due and Still Accruing
     179       2       8,850.0 %     135       32.6 %
 
                              
Total Non-Performing Loans
     22,621       14,215       59.1 %     12,136       86.4 %
Other Real Estate Owned
     1,080       —       —       —       —
 
                              
Total Non-Performing Assets
   $ 23,701     $ 14,215       66.7 %   $ 12,136       95.3 %
 
                              
Total Non-Performing Loans/Total Gross Loans
     0.74 %     0.50 %             0.43 %        
Total Non-Performing Assets/Total Assets
     0.61 %     0.38 %             0.33 %        
Total Non-Performing Assets/Allowance for Loan Losses
     73.6 %     51.6 %             44.5 %        
 
                                        
DELINQUENT LOANS
   $ 31,979     $ 19,616       63.0 %   $ 23,084       38.5 %
 
                              
 
                                        
Delinquent Loans/Total Gross Loans
     1.05 %     0.68 %             0.83 %        
 
                                        
LOAN PORTFOLIO:
                                        
Real Estate Loans
   $ 1,062,460     $ 1,041,393       2.0 %   $ 1,029,462       3.2 %
Commercial and Industrial Loans
     1,898,097       1,726,434       9.9 %     1,663,449       14.1 %
Consumer Loans
     97,496       100,121       (2.6 )%     98,974       (1.5 )%
 
                              
Total Gross Loans
     3,058,053       2,867,948       6.6 %     2,791,885       9.5 %
Deferred Loan Fees
     (2,132 )     (3,001 )     (29.0 )%     (3,915 )     (45.5 )%
Allowance for Loan Losses
     (32,190 )     (27,557 )     16.8 %     (27,250 )     18.1 %
 
                              
Loans Receivable, Net
   $ 3,023,731     $ 2,837,390       6.6 %   $ 2,760,720       9.5 %
 
                              
 
                                        
LOAN MIX:
                                        
Real Estate Loans
     34.7 %     36.3 %             36.9 %        
Commercial and Industrial Loans
     62.1 %     60.2 %             59.6 %        
Consumer Loans
     3.2 %     3.5 %             3.5 %        
 
                                  
Total Gross Loans
     100.0 %     100.0 %             100.0 %        
 
                                  
 
                                        
DEPOSIT PORTFOLIO:
                                        
Demand — Noninterest-Bearing
   $ 720,214     $ 728,348       (1.1 )%   $ 778,445       (7.5 )%
Savings
     97,019       99,254       (2.3 )%     110,492       (12.2 )%
Money Market Checking and NOW Accounts
     438,973       438,267       0.2 %     440,970       (0.5 )%
Time Deposits of $100,000 or More
     1,408,237       1,383,358       1.8 %     1,287,257       9.4 %
Other Time Deposits
     308,703       295,488       4.5 %     277,848       11.1 %
 
                              
Total Deposits
   $ 2,973,146     $ 2,944,715       1.0 %   $ 2,895,012       2.7 %
 
                              
 
                                        
DEPOSIT MIX:
                                        
Demand — Noninterest-Bearing
     24.2 %     24.7 %             26.9 %        
Savings
     3.3 %     3.4 %             3.8 %        
Money Market Checking and NOW Accounts
     14.8 %     14.9 %             15.2 %        
Time Deposits of $100,000 or More
     47.4 %     47.0 %             44.5 %        
Other Time Deposits
     10.3 %     10.0 %             9.6 %        
 
                                  
Total Deposits
     100.0 %     100.0 %             100.0 %        
 
                                  

- 8 -

 

     
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID (UNAUDITED)
(Dollars in Thousands)
                                                                                                                         
    For the Three Months Ended     For the Six Months Ended  
    June 30, 2007     March 31, 2007     June 30, 2006     June 30, 2007     June 30, 2006  
            Interest     Average             Interest     Average             Interest     Average             Interest     Average             Interest     Average  
    Average     Income/     Yield/     Average     Income/     Yield/     Average     Income/     Yield/     Average     Income/     Yield/     Average     Income/     Yield/  
    Balance     Expense     Rate     Balance     Expense     Rate     Balance     Expense     Rate     Balance     Expense     Rate     Balance     Expense     Rate  
 
                                                                                          
INTEREST-EARNING ASSETS
                                                                                                                        
LOANS:
                                                                                                                        
Real Estate Loans:
                                                                                                                        
Commercial Property
   $ 769,112     $ 15,534       8.10 %   $ 752,673     $ 15,168       8.17 %   $ 761,626     $ 15,425       8.12 %   $ 760,938     $ 30,702       8.14 %   $ 747,442     $ 29,931       8.08 %
Construction
     215,760       5,137       9.55 %     212,370       4,937       9.43 %     179,588       4,286       9.57 %     214,074       10,075       9.49 %     170,293       8,052       9.54 %
Residential Property
     86,596       1,157       5.36 %     85,022       1,097       5.23 %     86,091       1,107       5.16 %     85,813       2,254       5.30 %     86,352       2,189       5.11 %
 
                                                                                          
Total Real Estate Loans
     1,071,468       21,828       8.17 %     1,050,065       21,202       8.19 %     1,027,305       20,818       8.13 %     1,060,825       43,031       8.18 %     1,004,087       40,172       8.07 %
Commercial and Industrial Loans
     1,848,369       41,206       8.94 %     1,736,530       38,769       9.05 %     1,608,638       35,905       8.95 %     1,792,760       79,973       9.00 %     1,543,507       67,737       8.85 %
Consumer Loans
     97,175       2,016       8.32 %     98,634       2,173       8.93 %     97,169       2,081       8.59 %     97,900       4,189       8.63 %     95,079       3,964       8.41 %
 
                                                                                          
Total Loans — Gross
     3,017,012       65,050       8.65 %     2,885,229       62,144       8.74 %     2,733,112       58,804       8.63 %     2,951,485       127,193       8.69 %     2,642,673       111,873       8.54 %
Prepayment Penalty Income
     —       162               —       417                       66               —       580               —       144          
Unearned Income on Loans, Net of Costs
     (2,117 )     —               (2,597 )     —               (3,894 )     —               (2,356 )     —               (3,851 )     —          
 
                                                                                                    
Gross Loans, Net
   $ 3,014,895     $ 65,212       8.68 %   $ 2,882,632     $ 62,561       8.80 %   $ 2,729,218     $ 58,870       8.65 %   $ 2,949,129     $ 127,773       8.74 %   $ 2,638,822     $ 112,017       8.56 %
 
                                                                                          
 
                                                                                                                        
INVESTMENT SECURITIES:
                                                                                                                        
Municipal Bonds
   $ 72,284     $ 762       4.22 %   $ 72,396     $ 764       4.22 %   $ 73,061     $ 773       4.23 %   $ 72,340     $ 1,526       4.22 %   $ 73,414     $ 1,551       4.23 %
U.S. Government Agency Securities
     118,696       1,233       4.16 %     118,267       1,256       4.25 %     127,184       1,316       4.14 %     118,483       2,489       4.20 %     126,843       2,619       4.13 %
Mortgage-Backed Securities
     111,568       1,317       4.72 %     118,899       1,404       4.72 %     136,514       1,612       4.72 %     115,213       2,721       4.72 %     140,511       3,282       4.67 %
Collateralized Mortgage Obligations
     60,199       651       4.33 %     64,208       697       4.34 %     75,728       810       4.28 %     62,193       1,348       4.33 %     77,703       1,657       4.26 %
Corporate Bonds
     7,907       89       4.50 %     7,869       90       4.57 %     7,903       89       4.50 %     7,888       179       4.54 %     7,968       179       4.49 %
Other Securities
     4,944       84       6.80 %     5,049       84       6.65 %     4,981       83       6.67 %     4,996       168       6.73 %     5,001       168       6.72 %
 
                                                                                          
Total Investment Securities
   $ 375,598     $ 4,136       4.40 %   $ 386,688     $ 4,295       4.44 %   $ 425,371     $ 4,683       4.40 %   $ 381,113     $ 8,431       4.42 %   $ 431,440     $ 9,456       4.38 %
 
                                                                                          
 
                                                                                                                        
OTHER INTEREST-EARNING ASSETS:
                                                                                                                        
Equity Securities (FHLB and FRB Stock)
   $ 25,290     $ 336       5.31 %   $ 25,008     $ 369       5.90 %   $ 24,524     $ 330       5.38 %   $ 49,833     $ 705       2.83 %   $ 24,567     $ 655       5.33 %
Federal Funds Sold
     13,340       176       5.28 %     55,528       726       5.23 %     1,859       23       4.95 %     34,317       902       5.26 %     14,158       312       4.41 %
Term Federal Funds Sold
     —       —       —     389       5       5.14 %     —       —       —     193       5       5.18 %     —       —       —
Interest-Earning Deposits
     —       —       —     —       —       —     27       —     3.64 %     —       —       —     64       1       4.01 %
 
                                                                                          
Total Other Interest-Earning Assets
   $ 38,630     $ 512       5.30 %   $ 80,925     $ 1,100       5.44 %   $ 26,410     $ 353       5.35 %   $ 84,343     $ 1,612       3.82 %   $ 38,789     $ 968       4.99 %
 
                                                                                          
 
                                                                                                                        
TOTAL INTEREST-EARNING ASSETS
   $ 3,429,123     $ 69,860       8.17 %   $ 3,350,245     $ 67,956       8.23 %   $ 3,180,999     $ 63,906       8.06 %   $ 3,414,585     $ 137,816       8.14 %   $ 3,109,051     $ 122,441       7.94 %
 
                                                                                          
 
                                                                                                                        
INTEREST-BEARING LIABILITIES
                                                                                                                        
INTEREST-BEARING DEPOSITS:
                                                                                                                        
Savings
   $ 99,457     $ 502       2.02 %   $ 100,777     $ 461       1.86 %   $ 112,341     $ 480       1.71 %   $ 100,114     $ 963       1.94 %   $ 115,036     $ 962       1.69 %
Money Market Checking and NOW Accounts
     432,408       3,666       3.40 %     427,871       3,472       3.29 %     484,039       3,638       3.01 %     430,152       7,138       3.35 %     501,735       7,352       2.95 %
Time Deposits of $100,000 or More
     1,411,099       18,778       5.34 %     1,406,311       18,498       5.33 %     1,223,118       14,869       4.88 %     1,408,718       37,276       5.34 %     1,195,348       27,653       4.67 %
Other Time Deposits
     303,957       3,745       4.94 %     300,876       3,650       4.92 %     273,503       2,934       4.30 %     302,425       7,395       4.93 %     273,134       5,545       4.09 %
 
                                                                                          
Total Interest-Bearing Deposits
   $ 2,246,921     $ 26,691       4.76 %   $ 2,235,835     $ 26,081       4.73 %   $ 2,093,001     $ 21,921       4.20 %   $ 2,241,409     $ 52,772       4.75 %   $ 2,085,253     $ 41,512       4.01 %
 
                                                                                          
 
                                                                                                                        
BORROWINGS:
                                                                                                                        
FHLB Advances and Other Borrowings
   $ 222,338     $ 2,919       5.27 %   $ 169,188     $ 2,171       5.20 %   $ 166,074     $ 2,001       4.83 %   $ 195,910     $ 5,090       5.24 %   $ 111,285     $ 2,615       4.74 %
Junior Subordinated Debentures
     82,406       1,660       8.08 %     82,406       1,639       8.07 %     82,406       1,587       7.72 %     82,406       3,299       8.07 %     82,406       3,062       7.49 %
 
                                                                                          
Total Borrowings
   $ 304,744     $ 4,579       6.03 %   $ 251,594     $ 3,810       6.14 %   $ 248,480     $ 3,588       5.79 %   $ 278,316     $ 8,389       6.08 %   $ 193,691     $ 5,677       5.91 %
 
                                                                                          
 
                                                                                                                        
TOTAL INTEREST-BEARING LIABILITIES
   $ 2,551,665     $ 31,270       4.92 %   $ 2,487,429     $ 29,891       4.87 %   $ 2,341,481     $ 25,509       4.37 %   $ 2,519,725     $ 61,161       4.89 %   $ 2,278,944     $ 47,189       4.18 %
 
                                                                                          
 
                                                                                                                        
NET INTEREST SPREAD
                     3.25 %                     3.36 %                     3.69 %                     3.25 %                     3.76 %
 
                                                                                                              
 
                                                                                                                        
NET INTEREST MARGIN
                     4.51 %                     4.61 %                     4.84 %                     4.53 %                     4.88 %
 
                                                                                                              

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