EXHIBIT 99.1
HANMI FINANCIAL CORPORATION REPORTS
NET INCOME OF $11.1 MILLION FOR THIRD QUARTER OF 2007
     LOS ANGELES, California — November 6, 2007 — Hanmi Financial Corporation (NASDAQ:HAFC), the holding company for Hanmi Bank, reported that for the three months ended September 30, 2007, it earned net income of $11.1 million, a decrease of 27.6 percent compared to net income of $15.3 million for the second quarter of 2007. Earnings per share were $0.23 (diluted), a decrease of 25.8 percent compared to $0.31 per share (diluted) for the second quarter of 2007.
     “Our strong loan growth and the opening of our 24th branch during the quarter were overshadowed by higher loan loss provisions and continued margin compression. During the quarter, our loan portfolio increased $164.0 million and we opened a new branch in Rancho Cucamonga, California,” said Sung Won Sohn, Ph.D., President and Chief Executive Officer. “However, our net interest margin decreased from 4.51 percent in the second quarter to 4.26 percent in the third quarter. We expect our margin to continue to experience competitive pressures in the near term and the recent change in the Federal Reserve monetary policy will hurt margins until it is fully reflected in the repricing of our time deposits.”
     “The third quarter increase of $5.4 million in the provision for credit losses stems in part from a group of six related business acquisition loans amounting to $3.6 million, some of which have become the subject of litigation that we initiated.”
     “In this uncertain economic and financial environment, the asset quality is a serious concern for all lenders. Fortunately, Hanmi’s exposure to the residential market is minimal. The commercial real estate market, about two-thirds of Hanmi’s portfolio, continues to remain healthy. However, in recent quarters, we have experienced higher delinquencies and charge-offs resulting from a more challenging environment for our customers.”
THIRD-QUARTER HIGHLIGHTS
•   Net interest income before provision for credit losses was $37.9 million for the third quarter of 2007, compared to $38.6 million for the second quarter of 2007 and $39.7 million for the third quarter of 2006, reflecting a 2.8 percent and 7.3 percent, respectively, sequential increase in average interest-earning assets. Net interest margin for the third quarter of 2007 was 4.26 percent, compared to 4.51 percent for the second quarter of 2007 and 4.79 percent for the third quarter of 2006.
 
•   The loan portfolio increased by $354.9 million, or 12.4 percent, to $3.22 billion at September 30, 2007, compared to $2.86 billion at December 31, 2006, reflecting continued growth in commercial and industrial loans.
 
•   Non-performing loans increased by $22.1 million to $44.7 million, or 1.39 percent of the portfolio, at September 30, 2007, compared to $22.6 million, or 0.74 percent of the portfolio, at June 30, 2007. Loans over 30 days delinquent increased from $32.0 million at June 30, 2007 to $55.0 million at September 30, 2007.
 
•   The provision for credit losses was $8.5 million for the third quarter of 2007, compared to $3.0 million for the second quarter of 2007 and $1.7 million for the third quarter of 2006.
 
•   The allowance for loan losses was 1.07 percent, 1.05 percent and 0.99 percent of the gross loan portfolio at September 30, 2007, June 30, 2007 and September 30, 2006, respectively.
 
•   During the third quarter, the Company repurchased 1,004,100 of its shares at a cost of $15.0 million, or $14.90 per share.

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NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES
     Net interest income before provision for credit losses was $37.9 million for the third quarter of 2007, a decrease of $735,000, or 1.9 percent, compared to $38.6 million for the second quarter of 2007, and a decrease of $1.9 million, or 4.7 percent, compared to $39.7 million for the third quarter of 2006.
     The yield on the loan portfolio was 8.44 percent for the third quarter of 2007, a decrease of 24 basis points compared to 8.68 percent for the second quarter of 2007, and a decrease of 45 basis points compared to 8.89 percent for the third quarter of 2006. The yield on investment securities was 4.52 percent for the third quarter of 2007, an increase of 12 basis points compared to 4.40 percent for the second quarter of 2007, and an increase of four basis points compared to 4.48 percent for the third quarter of 2006.
     The yield on average interest-earning assets was 8.01 percent for the third quarter of 2007, a decrease of 16 basis points compared to 8.17 percent for the second quarter of 2007, and a decrease of 28 basis points compared to 8.29 percent for the third quarter of 2006. The cost of interest-bearing liabilities was 4.93 percent for the third quarter of 2007, an increase of one basis point compared to 4.92 percent for the second quarter of 2007, and an increase of 20 basis points compared to 4.73 percent for the third quarter of 2006, as the competitive deposit rate environment continued to stabilize.
PROVISION FOR CREDIT LOSSES
     The provision for credit losses was $8.5 million for the third quarter of 2007, compared to $3.0 million for the second quarter of 2007 and $1.7 million for the third quarter of 2006. In the third quarter of 2007, net charge-offs were $6.1 million, compared to $2.5 million for the second quarter of 2007 and $656,000 for the third quarter of 2006.
     The sequential increase in the provision for credit losses is attributable to an increased migration of loans into more adverse risk rating categories, including a group of six related business acquisition loans amounting to $3.6 million, some of which have become the subject of litigation; an increase of $164.0 million, or 5.4 percent, in the loan portfolio; and a higher rate of increase in non-performing assets, which increased $21.3 million in the third quarter to a balance of $45.0 million at September 30, 2007, compared to an increase of $4.2 million to a balance of $23.7 million at June 30, 2007.
     Delinquent loans increased to $55.0 million, or 1.71 percent of gross loans, at September 30, 2007 from $32.0 million, or 1.05 percent of gross loans, at June 30, 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 historical loss experience with similarly situated credits.
NON-INTEREST INCOME
     Non-interest income decreased by $1.2 million, or 10.9 percent, to $9.5 million for the third quarter of 2007, compared to $10.7 million for the second quarter of 2007, and increased by $354,000, or 3.9 percent, compared to $9.2 million for the third quarter of 2006. The decrease in non-interest income from the second quarter of 2007 to the third quarter of 2007 is primarily attributable to a $1.2 million decrease in the amount of gain on sales of loans. The increase in non-interest income from the third quarter of 2006 to the third quarter of 2007 is primarily attributable to an increase of $881,000 in insurance commissions, reflecting the acquisitions of two insurance agencies in the first quarter of 2007, and a $226,000 gain on sale of OREO, partially offset by a $877,000 decrease in the amount of gain on sales of loans.
NON-INTEREST EXPENSES
     Non-interest expenses decreased by $241,000, or 1.1 percent, to $21.2 million for the third quarter of 2007, compared to $21.5 million for the second quarter of 2007, and increased by $1.4 million, or 7.0 percent, compared to $19.9 million for the third quarter of 2006. Salaries and employee benefits increased by $636,000, or 5.9 percent, sequentially from $10.8 million for the second quarter of 2007 to $11.4 million for the third quarter of 2007 because of the opening of the Rancho Cucamonga branch in August 2007 and increased accruals for incentive compensation.

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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 third quarter of 2007 was 44.85 percent, compared to 43.61 percent for the second quarter of 2007 and 40.61 percent for the third quarter of 2006, in part reflecting the acquisitions of two insurance agencies in the first quarter of 2007 and the opening of the Rancho Cucamonga and Fullerton branches during 2007.
PROVISION FOR INCOME TAXES
     The provision for income taxes reflects a 37.2 percent effective tax rate for the third quarter of 2007, compared to a 38.1 percent effective tax rate for the second quarter of 2007 and a 35.7 percent effective tax rate for the third quarter of 2006. Changes in the effective tax rate reflect a relatively stable level of Enterprise Zone and low-income housing tax credits in periods in which there were changes in taxable income.
FINANCIAL POSITION
     Total assets were $4.01 billion at September 30, 2007, an increase of $286.4 million, or 7.7 percent, compared to $3.73 billion at December 31, 2006, and an increase of $272.5 million, or 7.3 percent, from the September 30, 2006 balance of $3.74 billion.
     At September 30, 2007, net loans totaled $3.19 billion, an increase of $348.0 million, or 12.3 percent, from $2.84 billion at December 31, 2006. Real estate loans increased by $57.7 million, or 5.5 percent, to $1.10 billion at September 30, 2007, compared to $1.04 billion at December 31, 2006, and commercial and industrial loans grew by $306.6 million, or 17.8 percent, to $2.03 billion at September 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 $192.3 million, up 113.8 percent to $361.3 million at September 30, 2007, compared to $169.0 million at December 31, 2006. In addition, deposits increased $102.8 million, up 3.5 percent to $3.05 billion at September 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 $91.4 million, up 6.6 percent to $1.47 billion, in money market checking accounts of $38.0 million, up 8.7 percent to $476.3 million, and in other time deposits of $16.4 million, up 5.5 percent to $311.9 million, partially offset by decreases in noninterest-bearing demand deposits of $37.8 million, down 5.2 percent to $690.5 million, and in savings accounts of $5.1 million, down 5.1 percent to $94.2 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 $30.8 million to $45.0 million at September 30, 2007 from $14.2 million at December 31, 2006, and increased by $31.5 million from $13.5 million at September 30, 2006. Non-performing loans at September 30, 2007 included a $17 million construction loan for low-income housing that is fully collateralized and participated in by the local government. The downgrade of this loan relates to project cost overruns and construction delays. Despite these set backs we anticipate the project being completed and our loan being repaid without a loss to the Bank. Additionally, to date, we have never lost any money on low-income housing projects. Non-performing loans as a percentage of gross loans increased to 1.39 percent at September 30, 2007 from 0.50 percent at December 31, 2006 and 0.47 percent at September 30, 2006.
     At September 30, 2007, delinquent loans were $55.0 million, or 1.71 percent of gross loans, compared to $19.6 million, or 0.68 percent of gross loans, at December 31, 2006, and $24.1 million, or 0.84 percent of gross loans, at September 30, 2006.
     At September 30, 2007, the Company maintained an allowance for loan losses of $34.5 million and a liability for off-balance sheet exposure, primarily unfunded loan commitments, of $1.8 million. The allowance for loan losses represented 1.07 percent of gross loans at September 30, 2007, compared to 0.96 percent and 0.99 percent at December 31, 2006 and September 30, 2006, respectively. As of September 30, 2007, the allowance for loan losses was 77.19 percent of non-performing loans, compared to 193.9 percent at December 31, 2006 and 209.8 percent at September 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 24 full-service offices in Los Angeles, Orange, San Bernardino, 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; the ability of borrowers to perform under the terms of their loans and other terms of credit agreements; our ability to successfully integrate acquisitions we may make; the availability of capital to fund the expansion of our business; and changes in securities markets. In addition, we set forth certain risks in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended December 31, 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
Stephanie Yoon
Investor Relations
(213) 427-5631

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HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
                                         
    September 30,     December 31,     %     September 30,     %  
    2007     2006     Change     2006     Change  
ASSETS
                                        
Cash and Due from Banks
   $ 103,789     $ 97,501       6.4 %   $ 97,609       6.3 %
Federal Funds Sold
     —       41,000       (100.0 )%     67,000       (100.0 )%
 
                              
Cash and Cash Equivalents
     103,789       138,501       (25.1 )%     164,609       (36.9 )%
 
                              
Term Federal Funds Sold
     —       5,000       (100.0 )%     —       —  
Investment Securities
     357,616       391,579       (8.7 )%     398,956       (10.4 )%
Loans:
                                        
Loans, Net of Deferred Loan Fees
     3,219,871       2,864,947       12.4 %     2,850,146       13.0 %
Allowance for Loan Losses
     (34,503 )     (27,557 )     25.2 %     (28,276 )     22.0 %
 
                              
Net Loans
     3,185,368       2,837,390       12.3 %     2,821,870       12.9 %
 
                              
Customers’ Liability on Acceptances
     5,357       8,403       (36.2 )%     11,245       (52.4 )%
Premises and Equipment, Net
     20,597       20,075       2.6 %     20,322       1.4 %
Accrued Interest Receivable
     17,619       16,919       4.1 %     16,190       8.8 %
Other Real Estate Owned
     287       —       —       —       —  
Deferred Income Taxes
     13,480       13,064       3.2 %     10,959       23.0 %
Servicing Asset
     4,328       4,579       (5.5 )%     4,266       1.5 %
Goodwill
     209,991       207,646       1.1 %     207,646       1.1 %
Other Intangible Assets
     7,457       6,312       18.1 %     6,876       8.4 %
Federal Reserve Bank and Federal Home Loan Bank Stock
     25,525       24,922       2.4 %     24,768       3.1 %
Bank-Owned Life Insurance
     24,285       23,592       2.9 %     23,368       3.9 %
Other Assets
     35,916       27,261       31.7 %     28,080       27.9 %
 
                              
Total Assets
   $ 4,011,615     $ 3,725,243       7.7 %   $ 3,739,155       7.3 %
 
                              
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                        
Liabilities:
                                        
Deposits:
                                        
Noninterest-Bearing
   $ 690,513     $ 728,347       (5.2 )%   $ 756,901       (8.8 )%
Interest-Bearing
     2,357,044       2,216,368       6.3 %     2,216,880       6.3 %
 
                              
Total Deposits
     3,047,557       2,944,715       3.5 %     2,973,781       2.5 %
Accrued Interest Payable
     20,449       22,582       (9.4 )%     19,191       6.6 %
Acceptances Outstanding
     5,357       8,403       (36.2 )%     11,245       (52.4 )%
FHLB Advances and Other Borrowings
     361,344       169,037       113.8 %     169,435       113.3 %
Junior Subordinated Debentures
     82,406       82,406       —       82,406       —  
Other Liabilities
     11,593       10,983       5.6 %     12,392       (6.4 )%
 
                              
Total Liabilities
     3,528,706       3,238,126       9.0 %     3,268,450       8.0 %
Shareholders’ Equity
     482,909       487,117       (0.9 )%     470,705       2.6 %
 
                              
Total Liabilities and Shareholders’ Equity
   $ 4,011,615     $ 3,725,243       7.7 %   $ 3,739,155       7.3 %
 
                              

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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 Nine Months Ended  
    Sept. 30,     June 30,     %     Sept. 30,     %     Sept. 30,     Sept. 30,     %  
    2007     2007     Change     2006     Change     2007     2006     Change  
INTEREST INCOME:
                                                                
Interest and Fees on Loans
   $ 66,714     $ 65,212       2.3 %   $ 63,392       5.2 %   $ 194,487     $ 175,409       10.9 %
Interest on Investments
     4,422       4,472       (1.1 )%     4,836       (8.6 )%     13,558       14,948       (9.3 )%
Interest on Federal Funds Sold
     61       176       (65.3 )%     436       (86.0 )%     963       748       28.7 %
Interest on Term Federal Funds Sold
     —       —       —       —       —       5       —       —  
 
                                                
Total Interest Income
     71,197       69,860       1.9 %     68,664       3.7 %     209,013       191,105       9.4 %
 
                                                
INTEREST EXPENSE:
                                                                
Interest on Deposits
     27,882       26,691       4.5 %     25,178       10.7 %     80,654       66,690       20.9 %
Interest on FHLB Advances and Other Borrowings
     3,785       2,919       29.7 %     2,084       81.6 %     8,875       4,699       88.9 %
Interest on Junior Subordinated Debentures
     1,675       1,660       0.9 %     1,672       0.2 %     4,974       4,734       5.1 %
 
                                                
Total Interest Expense
     33,342       31,270       6.6 %     28,934       15.2 %     94,503       76,123       24.1 %
 
                                                
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES
     37,855       38,590       (1.9 )%     39,730       (4.7 )%     114,510       114,982       (0.4 )%
 
                                                            
Provision for Credit Losses
     8,464       3,023       180.0 %     1,682       403.2 %     17,619       5,542       217.9 %
 
                                                
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES
     29,391       35,567       (17.4 )%     38,048       (22.8 )%     96,891       109,440       (11.5 )%
 
                                                
NON-INTEREST INCOME:
                                                                
Service Charges on Deposit Accounts
     4,463       4,438       0.6 %     4,249       5.0 %     13,389       12,663       5.7 %
Insurance Commissions
     1,131       1,279       (11.6 )%     250       352.4 %     3,535       646       447.2 %
Trade Finance Fees
     1,082       1,177       (8.1 )%     1,227       (11.8 )%     3,549       3,414       4.0 %
Remittance Fees
     512       520       (1.5 )%     517       (1.0 )%     1,503       1,537       (2.2 )%
Other Service Charges and Fees
     691       574       20.4 %     591       16.9 %     1,881       1,739       8.2 %
Bank-Owned Life Insurance Income
     234       229       2.2 %     221       5.9 %     693       654       6.0 %
Increase in Fair Value of Derivatives
     207       222       (6.8 )%     389       (46.8 )%     521       723       (27.9 )%
Other Income
     457       491       (6.9 )%     328       39.3 %     1,223       911       34.2 %
Gain on Sales of Loans
     523       1,762       (70.3 )%     1,400       (62.6 )%     3,685       3,550       3.8 %
Gain on Sales of Other Real Estate Owned
     226       —       —       —       —       226       48       370.8 %
 
                                                
Total Non-Interest Income
     9,526       10,692       (10.9 )%     9,172       3.9 %     30,205       25,885       16.7 %
 
                                                
NON-INTEREST EXPENSES:
                                                                
Salaries and Employee Benefits
     11,418       10,782       5.9 %     10,357       10.2 %     33,961       30,209       12.4 %
Occupancy and Equipment
     2,657       2,571       3.3 %     2,482       7.1 %     7,740       7,122       8.7 %
Data Processing
     1,540       1,665       (7.5 )%     1,431       7.6 %     4,768       4,314       10.5 %
Advertising and Promotion
     943       889       6.1 %     665       41.8 %     2,493       2,122       17.5 %
Supplies and Communications
     704       704       —       636       10.7 %     1,996       1,848       8.0 %
Professional Fees
     565       647       (12.7 )%     390       44.9 %     1,686       1,550       8.8 %
Amortization of Other Intangible Assets
     570       592       (3.7 )%     585       (2.6 )%     1,776       1,815       (2.1 )%
Decrease in Fair Value of Embedded Option
     37       196       (81.1 )%     78       (52.6 )%     233       292       (20.2 )%
Other Operating Expenses
     2,815       3,444       (18.3 )%     3,237       (13.0 )%     9,055       8,126       11.4 %
 
                                                
Total Non-Interest Expenses
     21,249       21,490       (1.1 )%     19,861       7.0 %     63,708       57,398       11.0 %
 
                                                
INCOME BEFORE PROVISION FOR INCOME TAXES
     17,668       24,769       (28.7 )%     27,359       (35.4 )%     63,388       77,927       (18.7 )%
Provision for Income Taxes
     6,580       9,446       (30.3 )%     9,762       (32.6 )%     23,922       29,588       (19.1 )%
 
                                                
NET INCOME
   $ 11,088     $ 15,323       (27.6 )%   $ 17,597       (37.0 )%   $ 39,466     $ 48,339       (18.4 )%
 
                                                
EARNINGS PER SHARE:
                                                                
Basic
   $ 0.23     $ 0.32       (28.1 )%   $ 0.36       (36.1 )%   $ 0.82     $ 0.99       (17.2 )%
Diluted
   $ 0.23     $ 0.31       (25.8 )%   $ 0.36       (36.1 )%   $ 0.81     $ 0.98       (17.3 )%
WEIGHTED-AVERAGE SHARES OUTSTANDING:
                                                                
Basic
     47,355,143       48,397,824               48,890,662               48,232,464       48,809,921          
Diluted
     47,536,078       48,737,574               49,450,601               48,569,863       49,395,152          
SHARES OUTSTANDING AT PERIOD-END
     46,986,341       47,950,929               48,991,146               46,986,341       48,991,146          

-6-

 

HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in Thousands)
                                                                 
    For the Three Months Ended     For the Nine Months Ended  
    Sept. 30,     June 30,     %     Sept. 30,     %     Sept. 30,     Sept. 30,     %  
    2007     2007     Change     2006     Change     2007     2006     Change  
AVERAGE BALANCES:
                                                                
Average Gross Loans, Net of Deferred Loan Fees
   $ 3,135,531     $ 3,014,895       4.0 %   $ 2,828,972       10.8 %   $ 3,011,946     $ 2,702,902       11.4 %
Average Investment Securities
     360,626       375,598       (4.0 )%     401,039       (10.1 )%     374,209       421,195       (11.2 )%
Average Interest-Earning Assets
     3,526,493       3,429,123       2.8 %     3,287,581       7.3 %     3,435,932       3,169,215       8.4 %
Average Total Assets
     3,915,517       3,818,170       2.5 %     3,675,091       6.5 %     3,825,784       3,557,227       7.5 %
Average Deposits
     3,016,118       2,967,748       1.6 %     2,927,956       3.0 %     2,976,676       2,857,260       4.2 %
Average Borrowings
     367,605       304,744       20.6 %     241,404       52.3 %     308,406       209,770       47.0 %
Average Interest-Bearing Liabilities
     2,683,930       2,551,665       5.2 %     2,427,883       10.5 %     2,575,061       2,329,135       10.6 %
Average Shareholders’ Equity
     487,006       495,719       (1.8 )%     463,011       5.2 %     494,731       450,069       9.9 %
Average Tangible Equity
     269,255       277,414       (2.9 )%     248,147       8.5 %     276,627       233,671       18.4 %
 
                                                                
PERFORMANCE RATIOS:
                                                                
Return on Average Assets
     1.12 %     1.61 %             1.90 %             1.38 %     1.82 %        
Return on Average Shareholders’ Equity
     9.03 %     12.40 %             15.08 %             10.67 %     14.36 %        
Return on Average Tangible Equity
     16.34 %     22.15 %             28.13 %             19.07 %     27.66 %        
Efficiency Ratio
     44.85 %     43.61 %             40.61 %             44.02 %     40.75 %        
Net Interest Margin
     4.26 %     4.51 %             4.79 %             4.46 %     4.85 %        
 
                                                                
ALLOWANCE FOR LOAN LOSSES:
                                                                
Balance at the Beginning of Period
   $ 32,190     $ 31,527       2.1 %   $ 27,250       18.1 %   $ 27,557     $ 24,963       10.4 %
Provision Charged to Operating Expense
     8,397       3,181       164.0 %     1,682       399.2 %     17,952       5,542       223.9 %
Charge-Offs, Net of Recoveries
     (6,084 )     (2,518 )     141.6 %     (656 )     827.4 %     (11,006 )     (2,229 )     393.8 %
 
                                                
Balance at the End of Period
   $ 34,503     $ 32,190       7.2 %   $ 28,276       22.0 %   $ 34,503     $ 28,276       22.0 %
 
                                                
Allowance for Loan Losses to Total Gross Loans
     1.07 %     1.05 %             0.99 %             1.07 %     0.99 %        
Allowance for Loan Losses to Total Non-Performing Loans
     77.19 %     142.30 %             209.82 %             77.19 %     209.82 %        
 
                                                                
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS:
                                                                
Balance at the Beginning of Period
   $ 1,730     $ 1,888       (8.4 )%   $ 2,130       (18.8 )%   $ 2,130     $ 2,130       —  
Provision Charged to Operating Expense
     67       (158 )     (142.4 )%     —       —       (333 )     —       —  
 
                                                
Balance at the End of Period
   $ 1,797     $ 1,730       3.9 %   $ 2,130       (15.6 )%   $ 1,797     $ 2,130       (15.6 )%
 
                                                

-7-

 

HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED) (Continued)
(Dollars in Thousands)
                                         
    Sept. 30,     Dec. 31,     %     Sept. 30,     %  
    2007     2006     Change     2006     Change  
NON-PERFORMING ASSETS:
                                        
Non-Accrual Loans
   $ 44,497     $ 14,213       213.1 %   $ 13,470       230.3 %
Loans 90 Days or More Past Due and Still Accruing
     199       2       9,850.0 %     6       3,216.7 %
 
                              
Total Non-Performing Loans
     44,696       14,215       214.4 %     13,476       231.7 %
Other Real Estate Owned
     287       —       —       —       —  
 
                              
Total Non-Performing Assets
   $ 44,983     $ 14,215       216.4 %   $ 13,476       233.8 %
 
                              
Total Non-Performing Loans/Total Gross Loans
     1.39 %     0.50 %             0.47 %        
Total Non-Performing Assets/Total Assets
     1.12 %     0.38 %             0.36 %        
Total Non-Performing Assets/Allowance for Loan Losses
     130.4 %     51.6 %             47.7 %        
DELINQUENT LOANS
   $ 54,954     $ 19,616       180.1 %   $ 24,081       128.2 %
 
                              
Delinquent Loans/Total Gross Loans
     1.71 %     0.68 %             0.84 %        
 
                                        
LOAN PORTFOLIO:
                                        
Real Estate Loans
   $ 1,099,100     $ 1,041,393       5.5 %   $ 1,014,058       8.4 %
Commercial and Industrial Loans
     2,033,009       1,726,434       17.8 %     1,739,476       16.9 %
Consumer Loans
     90,416       100,121       (9.7 )%     100,180       (9.7 )%
 
                              
Total Gross Loans
     3,222,525       2,867,948       12.4 %     2,853,714       12.9 %
Deferred Loan Fees
     (2,654 )     (3,001 )     (11.6 )%     (3,568 )     (25.6 )%
 
                              
Loans, Net of Deferred Loan Fees
     3,219,871       2,864,947       12.4 %     2,850,146       13.0 %
Allowance for Loan Losses
     (34,503 )     (27,557 )     25.2 %     (28,276 )     22.0 %
 
                              
Loans Receivable, Net
   $ 3,185,368     $ 2,837,390       12.3 %   $ 2,821,870       12.9 %
 
                              
 
                                        
LOAN MIX:
                                        
Real Estate Loans
     34.1 %     36.3 %             35.5 %        
Commercial and Industrial Loans
     63.1 %     60.2 %             61.0 %        
Consumer Loans
     2.8 %     3.5 %             3.5 %        
 
                                  
Total Gross Loans
     100.0 %     100.0 %             100.0 %        
 
                                  
 
                                        
DEPOSIT PORTFOLIO:
                                        
Demand — Noninterest-Bearing
   $ 690,513     $ 728,348       (5.2 )%   $ 756,901       (8.8 )%
Savings
     94,150       99,254       (5.1 )%     99,719       (5.6 )%
Money Market Checking and NOW Accounts
     476,257       438,267       8.7 %     434,738       9.6 %
Time Deposits of $100,000 or More
     1,474,764       1,383,358       6.6 %     1,393,721       5.8 %
Other Time Deposits
     311,873       295,488       5.5 %     288,702       8.0 %
 
                              
Total Deposits
   $ 3,047,557     $ 2,944,715       3.5 %   $ 2,973,781       2.5 %
 
                              
 
                                        
DEPOSIT MIX:
                                        
Demand — Noninterest-Bearing
     22.7 %     24.7 %             25.5 %        
Savings
     3.1 %     3.4 %             3.4 %        
Money Market Checking and NOW Accounts
     15.6 %     14.9 %             14.6 %        
Time Deposits of $100,000 or More
     48.4 %     47.0 %             46.9 %        
Other Time Deposits
     10.2 %     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 Nine Months Ended  
    September 30, 2007     June 30, 2007     September 30, 2006     September 30, 2007     September 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
   $ 775,605     $ 15,678       8.02 %   $ 769,112     $ 15,534       8.10 %   $ 774,934     $ 16,118       8.25 %   $ 765,880     $ 46,380       8.10 %   $ 756,707     $ 46,049       8.14 %
Construction
     227,779       4,814       8.38 %     215,760       5,137       9.55 %     174,332       4,333       9.86 %     218,693       14,889       9.10 %     171,654       12,386       9.65 %
Residential Property
     87,864       1,124       5.08 %     86,596       1,157       5.36 %     84,124       1,114       5.25 %     86,505       3,378       5.22 %     85,601       3,303       5.16 %
 
                                                                                          
Total Real Estate Loans
     1,091,248       21,616       7.86 %     1,071,468       21,828       8.17 %     1,033,390       21,565       8.28 %     1,071,078       64,647       8.07 %     1,013,962       61,738       8.14 %
Commercial and Industrial Loans
     1,951,478       43,169       8.78 %     1,848,369       41,206       8.94 %     1,699,966       39,080       9.12 %     1,846,247       123,143       8.92 %     1,596,234       106,816       8.95 %
Consumer Loans
     94,751       1,798       7.53 %     97,175       2,016       8.32 %     99,268       2,255       9.01 %     96,839       5,987       8.27 %     96,490       6,219       8.62 %
 
                                                                                          
Total Loans — Gross
     3,137,477       66,583       8.42 %     3,017,012       65,050       8.65 %     2,832,624       62,900       8.81 %     3,014,164       193,777       8.60 %     2,706,686       174,773       8.63 %
Prepayment Penalty Income
     —       131               —       162                       492               —       710               —       636          
Unearned Income on Loans, Net of Costs
     (1,946 )     —               (2,117 )     —               (3,652 )     —               (2,218 )     —               (3,784 )     —          
 
                                                                                                    
Gross Loans, Net
   $ 3,135,531     $ 66,714       8.44 %   $ 3,014,895     $ 65,212       8.68 %   $ 2,828,972     $ 63,392       8.89 %   $ 3,011,946     $ 194,487       8.63 %   $ 2,702,902     $ 175,409       8.68 %
 
                                                                                          
 
                                                                                                                        
INVESTMENT SECURITIES:
                                                                                                                        
Municipal Bonds
   $ 70,984     $ 764       4.31 %   $ 72,284     $ 762       4.22 %   $ 71,301     $ 770       4.32 %   $ 71,883     $ 2,290       4.25 %   $ 72,702     $ 2,321       4.26 %
U.S. Government Agency Securities
     119,704       1,286       4.30 %     118,696       1,233       4.16 %     118,365       1,268       4.29 %     118,894       3,775       4.23 %     123,986       3,887       4.18 %
Mortgage-Backed Securities
     101,688       1,237       4.87 %     111,568       1,317       4.72 %     127,321       1,505       4.73 %     110,656       3,958       4.77 %     136,067       4,787       4.69 %
Collateralized Mortgage Obligations
     55,619       612       4.40 %     60,199       651       4.33 %     71,414       777       4.35 %     59,977       1,960       4.36 %     75,583       2,434       4.29 %
Corporate Bonds
     7,811       89       4.56 %     7,907       89       4.50 %     7,785       89       4.57 %     7,862       268       4.55 %     7,906       268       4.52 %
Other Securities
     4,820       84       6.97 %     4,944       84       6.80 %     4,854       85       7.00 %     4,937       252       6.81 %     4,951       253       6.81 %
 
                                                                                          
Total Investment Securities
   $ 360,626     $ 4,072       4.52 %   $ 375,598     $ 4,136       4.40 %   $ 401,040     $ 4,494       4.48 %   $ 374,209     $ 12,503       4.45 %   $ 421,195     $ 13,950       4.42 %
 
                                                                                          
 
                                                                                                                        
OTHER INTEREST-EARNING ASSETS:
                                                                                                                        
Equity Securities (FHLB and FRB Stock)
   $ 25,431     $ 350       5.51 %   $ 25,290     $ 336       5.31 %   $ 24,720     $ 342       5.53 %   $ 25,244     $ 1,055       5.57 %   $ 24,619     $ 997       5.40 %
Federal Funds Sold
     4,905       61       4.97 %     13,340       176       5.28 %     32,850       436       5.31 %     24,405       963       5.26 %     20,457       748       4.88 %
Term Federal Funds Sold
     —       —       —       —       —       —       —       —       —       128       5       0.1 %     —       —       —  
Interest-Earning Deposits
     —       —       —       —       —       —       —       —       —       —       —       0.00 %     42       1       4.01 %
 
                                                                                          
Total Other Interest-Earning Assets
   $ 30,336     $ 411       5.42 %   $ 38,630     $ 512       5.30 %   $ 57,570     $ 778       5.41 %   $ 49,777     $ 2,023       5.42 %   $ 45,118     $ 1,746       5.16 %
 
                                                                                          
 
                                                                                                                        
TOTAL INTEREST-EARNING ASSETS
   $ 3,526,493     $ 71,197       8.01 %   $ 3,429,123     $ 69,860       8.17 %   $ 3,287,582     $ 68,664       8.29 %   $ 3,435,932     $ 209,013       8.13 %   $ 3,169,215     $ 191,105       8.06 %
 
                                                                                          
INTEREST-BEARING LIABILITIES
                                                                                                                        
 
                                                                                                                        
INTEREST-BEARING DEPOSITS:
                                                                                                                        
Savings
   $ 95,147     $ 567       2.36 %   $ 99,457     $ 502       2.02 %   $ 102,518     $ 440       1.70 %   $ 98,440     $ 1,530       2.08 %   $ 110,817     $ 1,402       1.69 %
Money Market Checking and NOW Accounts
     471,756       4,164       3.50 %     432,408       3,666       3.40 %     441,880       3,512       3.15 %     444,173       11,302       3.40 %     481,564       10,864       3.02 %
Time Deposits of $100,000 or More
     1,438,711       19,263       5.31 %     1,411,099       18,778       5.34 %     1,358,908       17,881       5.22 %     1,418,825       56,539       5.33 %     1,250,467       45,534       4.87 %
Other Time Deposits
     310,711       3,888       4.96 %     303,957       3,745       4.94 %     283,173       3,345       4.69 %     305,217       11,283       4.94 %     276,517       8,890       4.30 %
 
                                                                                          
Total Interest-Bearing Deposits
   $ 2,316,325     $ 27,882       4.78 %   $ 2,246,921     $ 26,691       4.76 %   $ 2,186,479     $ 25,178       4.57 %   $ 2,266,655     $ 80,654       4.76 %   $ 2,119,365     $ 66,690       4.21 %
 
                                                                                          
 
                                                                                                                        
BORROWINGS:
                                                                                                                        
FHLB Advances and Other Borrowings
   $ 285,199     $ 3,785       5.27 %   $ 222,338     $ 2,919       5.27 %   $ 158,998     $ 2,084       5.20 %   $ 226,000     $ 8,875       5.25 %   $ 127,364     $ 4,699       4.93 %
Junior Subordinated Debentures
     82,406       1,675       8.06 %     82,406       1,660       8.08 %     82,406       1,672       8.05 %     82,406       4,974       8.07 %     82,406       4,734       7.68 %
 
                                                                                          
Total Borrowings
   $ 367,605     $ 5,460       5.89 %   $ 304,744     $ 4,579       6.03 %   $ 241,404     $ 3,756       6.17 %   $ 308,406     $ 13,849       6.00 %   $ 209,770     $ 9,433       6.01 %
 
                                                                                          
 
                                                                                                                        
TOTAL INTEREST-BEARING LIABILITIES
   $ 2,683,930     $ 33,342       4.93 %   $ 2,551,665     $ 31,270       4.92 %   $ 2,427,883     $ 28,934       4.73 %   $ 2,575,061     $ 94,503       4.91 %   $ 2,329,135     $ 76,123       4.37 %
 
                                                                                          
 
                                                                                                                        
NET INTEREST INCOME
           $ 37,855                     $ 38,590                     $ 39,730                     $ 114,510                     $ 114,982          
 
                                                                                                              
 
                                                                                                                        
NET INTEREST SPREAD
                     3.08 %                     3.25 %                     3.56 %                     3.22 %                     3.69 %
 
                                                                                                              
 
                                                                                                                        
NET INTEREST MARGIN
                     4.26 %                     4.51 %                     4.79 %                     4.46 %                     4.85 %
 
                                                                                                              

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