Exhibit 99.1

Hanmi Financial Corp. Earned $55.8 Million with a Net Tax Benefit of $47.2 Million as a Result of Deferred Tax Asset Valuation Allowance Reversal in 2Q 12

LOS ANGELES--(BUSINESS WIRE)--July 19, 2012--Hanmi Financial Corporation (NASDAQ: HAFC), the holding company for Hanmi Bank (the “Bank”), today reported second quarter net income of $55.8 million, or $1.77 per diluted share. Net income included pretax net income of $8.6 million, a 16% increase from $7.4 million in the first quarter of 2012, and a net tax benefit of $47.2 million resulting from a deferred tax asset (“DTA”) valuation allowance reversal. With multiple consecutive quarters of profitability and continued credit improvement, Hanmi was able to substantially reverse the valuation allowance recorded against its DTA, generating an income tax benefit of $53.1 million in the second quarter, offset by a current tax provision of $5.9 million. The reversal resulted in an increase in tangible book value to $11.02 per share at June 30, 2012, an increase of $1.74 per share, or 18.8%, compared to March 31, 2012. It is expected that an additional DTA valuation allowance reversal will occur in the next two quarters approximating an additional $10.1 million, for a total recognized DTA of approximately $63.2 million by year end. Year-to-date, net income in 2012 totaled $63.1 million, or $2.00 per diluted share. All per share results are adjusted to reflect the 1-for-8 reverse stock split, which became effective on December 19, 2011.

“Hanmi’s return to profitability in the past seven quarters is a direct result of the successful execution of our strategic turnaround plan and led to the reversal of the valuation allowance against our DTA. Our confidence in the sustainability of our future profitability is reflected in the decision,” said Jay S. Yoo, President and Chief Executive Officer. “More importantly, the ongoing improvement in asset quality, expanding net interest margin, improving operating efficiencies and contributions for our SBA loan originations and sales were the real highlights of the second quarter.”

Hanmi Financial 2012 Quarterly Financial Highlights
    At or for the Three Months Ended
6/30/2012     3/31/2012     6/30/2011
(In Thousands)
Net income $ 55,775 $ 7,341 $ 8,001
Net income per diluted common share $ 1.77 $ 0.23 $ 0.42
 
Total assets $

2,846,652

$ 2,771,471 $ 2,710,835
Total net loans $ 1,878,367 $ 1,896,827 $ 1,959,564
Total deposits $ 2,385,107 $ 2,363,726 $ 2,398,375
 
Net interest margin 3.84 % 3.69 % 3.65 %
Efficiency ratio 61.07 % 66.56 % 72.67 %
 
Tangible common equity per common share $

11.02

$ 9.28 $ 10.39
 
Non-performing assets $ 46,214 $ 51,474 $ 145,836
Non-performing assets/Total assets 1.62 % 1.86 % 5.38 %
Allowance for loan losses/Total gross loans 3.69 % 4.10 % 5.27 %
Allowance for loan losses/Total non-performing loans 159.26 % 161.41 % 75.45 %
 
Classified assets $ 143,736 $ 230,706 $ 388,712
Classified assets to Bank Tier 1 Capital and ALLL

32.20

% 54.00 % 101.28 %
 
Hanmi Financial
Total Risk-Based Capital

20.01

% 18.74 % 13.92 %
Tier 1 Leverage Capital

14.69

% 13.44 % 9.09 %
Tangible equity/Tangible assets

12.20

% 10.55 % 7.26 %

Financial Highlights (at or for the period ended June 30, 2012)


Capital Management

“The reversal of the DTA valuation allowance had a substantial impact on our tangible common equity ratios and boosted book value per share by $1.69,” said Lonny Robinson, Executive Vice President and Chief Financial Officer. “The improvement in our ratio of classified assets to the ALLL plus the Bank’s tier 1 capital to 32.20% is a critical accomplishment and below the 40% regulatory target for this ratio. We believe we have made substantial progress to improve the financial position of the Bank on the three most important regulatory requirements: strong capital levels, quality core earnings, and improving credit metrics. We are hopeful our regulators will agree with this assessment. All of our capital levels remain well above those required by regulatory standards.” The following table shows the Company’s and Bank’s capital ratios:

Hanmi Financial     June 30,     March 31,     June 30,
2012 2012 2011
Total risk-based

20.01

% 18.74 % 13.92 %
Tier 1 risk-based

18.74

% 17.46 % 11.92 %
Tier 1 leverage

14.69

% 13.44 % 9.09 %
Tangible common equity

12.20

% 10.55 % 7.26 %
 
Hanmi Bank June 30, March 31, June 30,
2012 2012 2011
Total risk-based

19.06

% 17.74 % 14.02 %
Tier 1 risk-based 17.79 % 16.45 % 12.72 %
Tier 1 leverage

13.95

% 12.67 % 9.70 %
Tangible common equity

14.34

% 12.71 % 10.33 %

Results of Operations

Net interest income, before the provision for credit losses, totaled $25.2 million for the second quarter of 2012, up 2.6% from $24.5 million in the first quarter of 2012 and down 1.2% from $25.5 million in the second quarter of 2011. Interest and dividend income was down 1.1% from the first quarter of 2012 and down 8.1% from the second quarter of 2011, while interest expense fell 16.8% and 32.9% compared to the first quarter of 2012 and the second quarter of 2011, respectively. In the first six months of 2012, net interest income, before the provision for credit losses, totaled $49.7 million, down 3.6% from $51.6 million in the first six months of 2011.

Average yield on loans was 5.47% for the second quarter and 5.52% for the first six months in 2012. The yield on the investment securities portfolio, which accounted for 15.8% of average earning assets, improved during the second quarter of 2012 to 2.25% from 2.12% for the first quarter of 2012, but down from 2.54% during the second quarter of 2011.

“We booked a $1.4 million gain on the sale of $69.2 million in security investments in the second quarter to recognize some of the premium values on these assets. While loan demand is starting to improve, we will continue to hold and manage a sizeable securities position for the foreseeable future,” said Robinson, “Our goal is to deploy this excess liquidity in high quality loan originations when they are available in the market place.”

With the mix of deposits continuing to improve, the cost of interest-bearing liabilities continues to decline. The cost of interest-bearing liabilities was down 18 basis points to 1.12% in the second quarter of 2012, when compared to the first quarter of 2012, and down 29 basis points from the second quarter of 2011. For the first six months of 2012, the cost of interest bearing liabilities declined 24 basis points to 1.21%.

Hanmi’s net interest margin improved 15 basis points to 3.84% in the second quarter of 2012, compared to the first quarter of 2012, and grew 19 basis points from the second quarter of 2011. Lower cost of deposits at 0.69% in the second quarter of 2012, compared to 0.85% for the first quarter of 2012 contributed to this improvement.

The provision for credit losses was $4.0 million in the second quarter compared to $2.0 million in the first quarter of 2012 and none a year ago. Note sales of $44.3 million contributed to total charge offs of $8.4 million and an additional loss on sale of these loans of $5.3 million in the second quarter of 2012. The total net charge offs for the second quarter of 2012 was $13.4 million, as compared with $11.3 million net charge offs in the first quarter of 2012 and $16.5 million net charge offs in the second quarter of 2011. The allowance for loan losses remains healthy at $71.9 million, or 3.69% of total loans.


Net interest income, after the provision for credit losses, totaled $21.2 million in the second quarter of 2012, compared to $22.5 million in the first quarter of 2012 and $25.5 million in the second quarter of 2011. In the first six months of 2012, net interest income after the provision for credit losses, totaled $43.7 million compared to $51.6 million in the first six months of 2011.

Non-interest income in the second quarter of 2012 was $7.2 million, compared to $3.6 million in the first quarter of 2012 and $6.0 million in the second quarter of 2011. In the first six months of 2012, non-interest income totaled $10.8 million compared to $11.5 million in the first six months of 2011.

“We generated $5.5 million gain on sales of SBA loans, $5.3 million net loss on sales of other loans, and $1.4 million net gain on sales of investment securities in the second quarter of 2012, as opposed to net losses on note sales of $2.4 million in the first quarter of 2012,” said Robinson.

Non-interest expense in the second quarter of 2012 was $19.8 million, compared to $18.7 million in the first quarter of 2012 and $22.9 million in the second quarter of 2011. Salaries and employee benefits increased by $339,000, mainly due to a $202,000 severance payment made in connection with a workforce reduction and a $200,000 additional bonus provision, partially offset by an increase in loan origination cost capitalization. Professional fees increased by $340,000, mainly due to the legal expense increase from an elevated level of problem note sales during the quarter. Advertising and promotion expenses increased by $408,000, mainly due to the 30th anniversary celebration campaign and the business development efforts for loan production. Other operating expenses decreased by $229,000, mainly due to the $202,000 decrease from the fair value of stock warrant adjustment. For the first six months of 2012, non-interest expense totaled $38.5 million, down from $43.9 million in the first six months of 2011. In the year ago quarter and first half, operating costs were boosted by a $2.2 million expense for unconsummated capital offerings.

Hanmi recorded an income tax benefit of $47.2 million for the second quarter of 2012, largely due to the income tax benefit that resulted from the reversal of the $53.1 million valuation allowance on its DTA. The valuation allowance was established in 2009 resulting from the then-current future earnings prospects and the Bank’s potential inability to realize its DTA in the future. With seven consecutive quarters of profitability, significantly improved asset quality, strengthening capital and improving economic conditions, management has concluded that those assets are more likely than not to be recovered and thus maintaining a valuation allowance for DTA was no longer necessary. In addition to the reversal of the valuation allowance, the Bank recorded a provision for income taxes for the second quarter of 2012 in the amount of $5.9 million. The Bank expects to release an additional DTA valuation allowance reserve of $10.1 million in the third and fourth quarter of 2012. The total DTA benefit recognized will approximate $63.2 million for the year.

Balance Sheet

Total assets were $2.85 billion at June 30, 2012, an increase of 2.7% from $2.77 billion at March 31, 2012, and 5.0% from $2.71 billion at June 30, 2011.

Gross loans, excluding loans held for sale, totaled $1.95 billion at June 30, 2012, down from $1.98 billion at March 31, 2012, and $2.07 billion at June 30, 2011. Loans held for sale declined substantially to $5.1 million from $56.0 million at March 31, 2012 and $44.1 million at June 30, 2011. Average gross loans, net of deferred loan fees, were $2.00 billion for the second quarter of 2012, compared to $1.99 billion in the first quarter of 2012 and $2.14 billion for the second quarter of 2011.

Liquidity remained high with the total average investment portfolio at $417.2 million during the second quarter of 2012, down from $426.4 million during the first quarter of 2012 and from $497.1 million during the second quarter of 2011. Cash and cash equivalents increased to $304.4 million at June 30, 2012, up from $160.2 million at March 31, 2012 and $198.9 million at June 30, 2011.

Average deposits for the second quarter of 2012 were down slightly at $2.31 billion compared to $2.43 billion for the second quarter of 2011. The overall mix of funding continued to improve with time deposits, particularly high-cost promotional accounts, declining and transaction account balances increasing. Core deposits, which are total deposits less time deposits equal to or greater than $100,000, accounted for 71.3% of total deposits, at June 30, 2012, up from 59.8% at June 30, 2011. Demand deposit accounts increased 17.8% to $679.1 million at June 30, 2012 compared to $600.8 million at June 30, 2011. Demand deposit accounts accounted for 28.5% of total deposits at June 30, 2012, up from 25.2% at June 30, 2011. Time deposits equal to or greater than $100,000 were down $194.8 million in the past twelve months, and there were no brokered deposits at June 30, 2012. Total deposits were $2.39 billion at June 30, 2012 compared to $2.40 billion at June 30, 2011.


At June 30, 2012, total stockholders’ equity was $348.5 million, or $11.07 per share. Hanmi had 31.5 million shares outstanding at June 30, 2012, compared to 18.9 million shares outstanding at June 30, 2011, adjusting for stock splits. Tangible common stockholders’ equity was $347.0 million at June 30, 2012, or 12.20% of tangible assets, compared to $196.5 million, or 7.26% of tangible assets at June 30, 2011. Tangible book value per share was $11.02 at June 30, 2012, compared to $9.28 at March 31, 2012, an increase of 18.8%, reflecting the reversal of the DTA valuation allowance in the second quarter of 2012.

Asset Quality

Non-performing loans (“NPL”), excluding loans held for sale, declined to $45.1 million at June 30, 2012, down 10.1% from $50.2 million at March 31, 2012, and down 68.8% from $144.5 million at June 30, 2011. NPLs that were restructured (“TDRs”) and are current on payments, totaled $15.1 million, or 33.4% of NPLs, at June 30, 2012, compared to $14.5 million, or 28.8% of the NPLs, at March 31, 2012, and $52.7 million, or 36.5% of the NPLs at June 30, 2011. In addition, $3.5 million of NPLs were recorded at the lower of cost or fair value as they were classified as held for sale, at June 30, 2012. Out of the NPLs, $9.4 million are guaranteed by the SBA and the State of California. The following table shows NPLs, excluding loans held for sale, by loan category:

  6/30/2012  

% of Total
NPL

  3/31/2012  

% of Total
NPL

  6/30/2011  

% of Total
NPL

(In Thousands)
Real Estate Loans:
Commercial Property
Retail $ 1,203 2.7 % $ 1,327 2.6 % $ 14,335 9.9 %
Land 2,112 4.7 % 2,187 4.4 % 25,184 17.5 %
Other 936 2.1 % 1,454 2.9 % 3,772 2.6 %
Construction 7,930 17.5 % 8,157 16.2 % 12,298 8.5 %
Residential Property 1,298 2.9 % 1,524 3.0 % 1,460 1.0 %
Commercial & Industrial Loans:
Commercial Term Loans
Unsecured 6,953 15.4 % 6,942 13.8 % 10,758 7.4 %
Secured by Real Estate 5,826 12.9 % 9,837 19.6 % 46,454 32.1 %
Commercial Line of Credit 1,585 3.5 % 1,610 3.2 % 2,905 2.0 %
SBA 15,720 34.8 % 16,648 33.2 % 23,263 16.2 %
International

-

0.0 %

-

0.0 % 3,243 2.2 %
Consumer Loans   1,580 3.5 %   528 1.1 %   824 0.6 %
Total Non-Performing Loans $ 45,143 100.0 % $ 50,214 100.0 % $ 144,496 100.0 %

“In the second quarter we sold $44.3 million in notes, bringing the total note sales up to $73.0 million for the year,” said J.H. Son, Executive Vice President and Chief Credit Officer. “Our strategy of selling loans before they move into foreclosure continues to serve us well and has allowed us to more efficiently reduce non-performing assets over the past few years. Of the $44.3 million of problem loans sold in the quarter, $16.5 million were non-accrual loans. Reflecting the continued improvement in asset quality, classified loans were $142.7 million, or 7.32% of total gross loans, at June 30, 2012, down from $387.4 million, or 18.73% of total gross loans, at June 30, 2011. We are very pleased with our team’s efforts and accomplishments in this area.”

Delinquent loans that are less than 90 days past due and still accruing interest decreased to $4.7 million at June 30, 2012, or 0.24% of gross loans, from $10.5 million, or 0.53% of gross loans, at March 31, 2012. At June 30, 2012, the allowance for loan losses was $71.9 million, or 3.69% of gross loans. At June 30, 2012, Hanmi’s allowance for loan losses was 159.3% of non-performing loans, compared to 161.4% at March 31, 2012. For the second quarter of 2012, net charge-offs were $13.4 million, compared to $11.3 million in the first quarter of 2012 and $16.5 million in the second quarter of 2011.


Conference Call Information

Management will host a conference call today at 1:30 p.m. Pacific Time (4:30 p.m. ET) to discuss these results. This call will also be broadcast live via the internet. Investment professionals and all current and prospective stockholders are invited to access the live call on July 19 by dialing (480) 629-9645 at 1:30 p.m. Pacific Time, using access code HANMI. To listen to the call online, either live or archived, visit the Investor Relations page of Hanmi’s website at www.hanmi.com. Shortly after the call concludes, the replay will also be available at (303) 590-3030, using access code 4550848.

On July 25, 2012, Hanmi will host its Annual Shareholders Meeting at 10:30 a.m. at the Sheraton Universal Hotel in Universal City. Shareholders, customers and employees are welcome to attend.

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 stockholder 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 capital plans 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: 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 Hanmi Financial; ability to recapture DTA; 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 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, in Item 1A of our Form 10K for the year ended December 31, 2011, our quarterly reports on Form 10Q, and in current and periodic reports that we will file with the SEC 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.


       
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
(In Thousands, Except Share Data)
 
June 30, March 31, Percentage June 30, Percentage
2012 2012 Change 2011 Change
ASSETS
Cash and Due From Banks $ 73,645 $ 68,093 8.15 % $ 67,166 9.65 %
Interest-Bearing Deposits in Other Banks 197,760 92,149 114.61 % 131,757 50.09 %
Federal Funds Sold   33,000    

-

  NM  

-

  NM
Cash and Cash Equivalents 304,405 160,242 89.97 % 198,923 53.03 %
 
Restricted Cash 3,819 1,818 NM

-

NM
Term Federal Funds Sold 110,000 120,000 -8.33 %

-

NM
Securities Available for Sale, at Fair Value 319,154 355,837 -10.31 % 390,212 -18.21 %
Securities Held to Maturity, at Amortized Cost 53,130 59,472 -10.66 % 833 NM
Loans Held for Sale, at the Lower of Cost or Fair Value 5,138 55,993 -90.82 % 44,105 -88.35 %
Loans Receivable, Net of Allowance for Loan Losses 1,878,367 1,896,827 -0.97 % 1,959,564 -4.14 %
Accrued Interest Receivable 7,168 7,969 -10.05 % 7,512 -4.58 %
Premises and Equipment, Net 15,912 16,272 -2.21 % 16,869 -5.67 %
Other Real Estate Owned, Net 1,071 1,260 -15.00 % 1,340 -20.07 %
Customers' Liability on Acceptances 1,443 1,539 -6.24 % 1,629 -11.42 %
Servicing Assets 5,003 3,515 42.33 % 2,545 96.58 %
Other Intangible Assets, Net 1,417 1,462 -3.08 % 1,825 -22.36 %
Investment in Federal Home Loan Bank Stock, at Cost 20,687 21,761 -4.94 % 25,076 -17.50 %
Investment in Federal Reserve Bank Stock, at Cost 10,261 8,558 19.90 % 7,489 37.01 %
Income Tax Asset

61,435

11,501

434.17

% 9,188

568.64

%
Bank-Owned Life Insurance 28,581 28,344 0.84 % 27,813 2.76 %
Other Assets   19,661     19,101   2.93 %   15,912   23.56 %
TOTAL ASSETS $

2,846,652

  $ 2,771,471  

2.71

% $ 2,710,835  

5.01

%
 
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Deposits:

Noninterest-Bearing

$ 679,085 $ 704,061 -3.55 % $ 600,812 13.03 %

Interest-Bearing

  1,706,022     1,659,665   2.79 %   1,797,563   -5.09 %
2,385,107 2,363,726 0.90 % 2,398,375 -0.55 %
 
Accrued Interest Payable 14,882 15,602 -4.61 % 14,226 4.61 %
Bank's Liability on Acceptances 1,443 1,539 -6.24 % 1,629 -11.42 %
Federal Home Loan Bank Advances 3,122 3,213 -2.83 % 3,479 -10.26 %
Other Borrowings

-

-

NM 1,034 NM
Junior Subordinated Debentures 82,406 82,406 0.00 % 82,406 0.00 %
Accrued Expenses and Other Liabilities   11,236     11,267   -0.28 %   11,321   -0.75 %
TOTAL LIABILITIES   2,498,196     2,477,753   0.83 %   2,512,470   -0.57 %
 
STOCKHOLDERS' EQUITY:
Common Stock, $0.008 Par Value 257 257 0.00 % 156 64.74 %
Additional Paid-In Capital 549,797 549,811 0.00 % 472,717 16.31 %
Unearned Compensation (116 ) (141 ) -17.73 % (219 ) -47.03 %
Accumulated Other Comprehensive Income

3,154

4,201

-24.92

% 3,325

-5.14

%
Accumulated Deficit (134,778 ) (190,552 ) -29.27 % (207,602 ) -35.08 %
Less Treasury Stock   (69,858 )   (69,858 ) 0.00 %   (70,012 ) -0.22 %
TOTAL STOCKHOLDERS' EQUITY  

348,456

    293,718  

18.64

%   198,365  

75.66

%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $

2,846,652

  $ 2,771,471  

2.71

% $ 2,710,835  

5.01

%
 

         
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In Thousands, Except Per Share Data)
 
Three Months Ended
June 30, March 31, Percentage June 30, Percentage
2012 2012 Change   2011 Change
INTEREST AND DIVIDEND INCOME:
Interest and Fees on Loans $ 27,241 $ 27,542 -1.09 % $ 29,249 -6.87 %
Taxable Interest on Investment Securities 2,190 2,098 4.39 % 3,094 -29.22 %
Tax-Exempt Interest on Investment Securities 99 102 -2.94 % 37

167.57

%

Interest on Term Federal Funds Sold 168 325 NM 18

833.33

%

Dividends on Federal Reserve Bank Stock 148 128 15.63 % 112

32.14

%

Interest on Federal Funds Sold and Securities Purchased Under Resale Agreements 31 2 NM 9

244.44

%

Interest on Interest-Bearing Deposits in Other Banks 59 68 -13.24 % 79

-25.32

%

Dividends on Federal Home Loan Bank Stock   29     29   0.00 %   20  

45.00

%

Total Interest and Dividend Income   29,965     30,294   -1.09 %   32,618   -8.13 %
INTEREST EXPENSE:
Interest on Deposits 3,953 4,919 -19.64 % 6,192 -36.16 %
Interest on Federal Home Loan Bank Advances 43 43 0.00 % 239

-82.01

%

Interest on Junior Subordinated Debentures 797 799 -0.25 % 711 12.10 %
Interest on Other Borrowings  

-

   

-

  NM   1   NM
Total Interest Expense   4,793     5,761   -16.80 %   7,143   -32.90 %
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES 25,172 24,533 2.60 % 25,475 -1.19 %
Provision for Credit Losses   4,000     2,000   NM  

-

  NM
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   21,172     22,533   -6.04 %   25,475   -16.89 %
NON-INTEREST INCOME:
Service Charges on Deposit Accounts 2,936 3,168 -7.32 % 3,278 -10.43 %
Insurance Commissions 1,294 1,236 4.69 % 1,203 7.56 %
Trade Finance and Other Service Charges and Fees 1,159 1,110 4.41 % 1,195 -3.01 %
Bank-Owned Life Insurance Income 238 399 -40.35 % 233 2.15 %
Net Gain on Sales of SBA Loans 5,473

-

NM

-

NM
Net Loss on Sales of Other Loans (5,326 ) (2,393 )

122.57

%

(77 ) NM
Net Gain (Loss) on Sales of Investment Securities 1,381 1 NM (70 ) NM
Impairment Loss on Investment Securities: (116 )

-

NM

-

NM
Other Operating Income   150     112   33.93 %   255   -41.18 %
Total Non-Interest Income   7,189     3,633   97.88 %   6,017   19.48 %
NON-INTEREST EXPENSE:
Salaries and Employee Benefits 9,449 9,110 3.72 % 8,762 7.84 %
Occupancy and Equipment 2,621 2,595 1.00 % 2,650 -1.09 %
Deposit Insurance Premiums and Regulatory Assessments 1,498 1,401 6.92 % 1,377 8.79 %
Data Processing 1,298 1,253 3.59 % 1,487 -12.71 %
Other Real Estate Owned Expense 69 (44 ) NM 806 NM
Professional Fees 1,089 749 45.39 % 1,138 -4.31 %
Directors and Officers Liability Insurance 295 297 -0.67 % 733 -59.75 %
Supplies and Communications 576 558 3.23 % 496 16.13 %
Advertising and Promotion 1,009 601 67.89 % 908 11.12 %
Loan-Related Expense 88 200 -56.00 % 184 -52.17 %
Amortization of Other Intangible Assets 45 71 -36.62 % 190 -76.32 %
Expense related to Unconsummated Capital Offerings

-

-

NM 2,220 NM
Other Operating Expenses   1,726     1,955   -11.71 %   1,935   -10.80 %
Total Non-Interest Expense   19,763     18,746   5.43 %   22,886   -13.65 %
INCOME BEFORE (BENEFIT) PROVISION FOR INCOME TAXES 8,598 7,420 15.88 % 8,606 -0.09 %
(Benefit) Provision for Income Taxes   (47,177 )   79   NM   605   NM
NET INCOME $ 55,775   $ 7,341   659.77 % $ 8,001   597.10 %
 
EARNINGS PER SHARE:
Basic $ 1.77 $ 0.23 $ 0.42
Diluted $ 1.77 $ 0.23 $ 0.42
WEIGHTED-AVERAGE SHARES OUTSTANDING:
Basic 31,475,610 31,470,520 18,888,080
Diluted 31,499,803 31,489,569 18,907,299
COMMON SHARES OUTSTANDING 31,489,201 31,489,201 18,907,299
 
 
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
(In Thousands, Except Per Share Data)
Three Months Ended
June 30, March 31, Percentage June 30, Percentage
2012 2012 Change   2011 Change
NET INCOME $ 55,775 $ 7,341 NM $ 8,001 NM
 
OTHER COMPREHENSIVE INCOME, NET OF TAX
Unrealized gains on securities

Unrealized holding gains arising during period

214

 

674 NM 6,172 NM
Less: Reclassification adjustment for gains included in net income (1,265 )

-

NM 70 NM
Unrealized gains on interest rate swap 7 1 NM 1 NM
Unrealized (loss) gains on interest-only strip of servicing assets   (3 )   2   NM   1   NM
Other Comprehensive (Loss) Income

(1,047

) 677 NM 6,244 NM
Comprehensive Income

54,728

8,018 NM 14,245 NM
Less: Comprehensive income attributable to the noncontrolling interest  

-

   

-

  NM  

-

  NM
COMPREHENSIVE INCOME ATTRIBUTABLE TO STOCKHOLDERS $

54,728

  $ 8,018   NM $ 14,245   NM
 

     
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In Thousands, Except Per Share Data)
 
Six Months Ended
June 30, June 30, Percentage
2012 2011 Change
INTEREST AND DIVIDEND INCOME:
Interest and Fees on Loans $ 54,783 $ 60,154 -8.93 %
Taxable Interest on Investment Securities 4,288 5,767 -25.65 %
Tax-Exempt Interest on Investment Securities 201 77

161.04

%

Interest on Term Federal Funds Sold 493 45

995.56

%

Dividends on Federal Reserve Bank Stock 276 224 23.21 %
Interest on Federal Funds Sold and Securities Purchased Under Resale Agreements 33 17

94.12

%

Interest on Interest-Bearing Deposits in Other Banks 127 168 -24.40 %
Dividends on Federal Home Loan Bank Stock   58     41   41.46 %
Total Interest and Dividend Income   60,259     66,493   -9.38 %
INTEREST EXPENSE:
Interest on Deposits 8,872 12,927 -31.37 %
Interest on Federal Home Loan Bank Advances 86 572

-84.97

%

Interest on Junior Subordinated Debentures 1,596 1,409 13.27 %
Interest on Other Borrowings  

-

    1   NM
Total Interest Expense   10,554     14,909   -29.21 %
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES 49,705 51,584 -3.64 %
Provision for Credit Losses   6,000    

-

  NM
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   43,705     51,584   -15.27 %
NON-INTEREST INCOME:
Service Charges on Deposit Accounts 6,104 6,419 -4.91 %
Insurance Commissions 2,530 2,463 2.72 %
Trade Finance and Other Service Charges and Fees 2,269 2,287 -0.79 %
Bank-Owned Life Insurance Income 637 463 37.58 %
Net Gain on Sales of SBA Loans 5,473

-

NM
Net Loss on Sales of Other Loans (7,719 ) (415 ) NM
Net Gain (Loss) on Sales of Investment Securities 1,382 (70 ) NM
Impairment Loss on Investment Securities: (116 )

-

NM
Other Operating Income   262     378   -30.69 %
Total Non-Interest Income   10,822     11,525   -6.10 %
NON-INTEREST EXPENSE:
Salaries and Employee Benefits 18,559 17,886 3.76 %
Occupancy and Equipment 5,216 5,215 0.02 %
Deposit Insurance Premiums and Regulatory Assessments 2,899 3,447 -15.90 %
Data Processing 2,551 2,886 -11.61 %
Other Real Estate Owned Expense 25 1,635 NM
Professional Fees 1,838 1,927 -4.62 %
Directors and Officers Liability Insurance 592 1,467 -59.65 %
Supplies and Communications 1,134 1,074 5.59 %
Advertising and Promotion 1,610 1,474 9.23 %
Loan-Related Expense 288 409 -29.58 %
Amortization of Other Intangible Assets 116 408 -71.57 %
Expense related to Unconsummated Capital Offerings

-

2,220 NM
Other Operating Expenses   3,681     3,899   -5.59 %
Total Non-Interest Expense   38,509     43,947   -12.37 %
INCOME BEFORE (BENEFIT) PROVISION FOR INCOME TAXES 16,018 19,162 -16.41 %
(Benefit) Provision for Income Taxes   (47,098 )   724   NM
NET INCOME $ 63,116   $ 18,438   242.31 %
 
EARNINGS PER SHARE:
Basic $ 2.01 $ 0.98
Diluted $ 2.00 $ 0.98
WEIGHTED-AVERAGE SHARES OUTSTANDING:
Basic 31,473,065 18,885,368
Diluted 31,489,943 18,907,169
COMMON SHARES OUTSTANDING 31,489,201 18,907,299
 
 
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
(In Thousands, Except Per Share Data)
 
Six Months Ended
June 30, June 30, Percentage
2012 2011 Change
NET INCOME $ 63,116 $ 18,438 NM
 
OTHER COMPREHENSIVE INCOME, NET OF TAX
Unrealized gains on securities

Unrealized holding gains arising during period

888

 

6,216 NM
Less: Reclassification adjustment for gains included in net income (1,265 ) 70 NM
Unrealized gains on interest rate swap 8 2 NM
Unrealized (loss) gains on interest-only strip of servicing assets   (1 )   1   NM
Other Comprehensive (Loss) Income

(370

) 6,289 NM
Comprehensive Income

62,746

24,727 NM
Less: Comprehensive income attributable to the noncontrolling interest  

-

   

-

  NM
COMPREHENSIVE INCOME ATTRIBUTABLE TO STOCKHOLDERS $

62,746

  $ 24,727   NM
 

     
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES

SELECTED FINANCIAL DATA (Unaudited)

 
Three Months Ended
June 30, March 31, June 30,
2012 2012 2011
AVERAGE BALANCES: (In Thousands)
Average Gross Loans, Net of Deferred Loan Fees (1)(2) $ 2,003,475 $ 1,985,071 $ 2,136,976
Average Investment Securities $ 417,202 $ 426,384 $ 497,052
Average Interest-Earning Assets $ 2,642,428 $ 2,676,643 $ 2,804,709
Average Total Assets $

2,723,432

$ 2,742,006 $ 2,836,967
Average Deposits $ 2,308,193 $ 2,337,302 $ 2,427,934
Average Borrowings $ 86,509 $ 85,665 $ 190,447
Average Interest-Bearing Liabilities $ 1,720,781 $ 1,777,208 $ 2,025,392
Average Stockholders’ Equity $

300,599

$ 289,132 $ 189,528
Average Tangible Equity $

299,154

$ 287,631 $ 187,595
 
PERFORMANCE RATIOS (Annualized):
Return on Average Assets 8.24 % 1.08 % 1.13 %
Return on Average Stockholders’ Equity

74.63

% 10.21 % 16.93 %
Return on Average Tangible Equity

74.99

% 10.27 % 17.11 %
Efficiency Ratio 61.07 % 66.56 % 72.67 %
Net Interest Spread (3) 3.45 % 3.26 % 3.26 %
Net Interest Margin (3) 3.84 % 3.69 % 3.65 %
Non Interest Expense to Average Total Assets 2.90 % 2.73 % 3.23 %
 
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $ 81,052 $ 89,936 $ 125,780
Provision Charged to Operating Expense 4,233 2,400 (250 )
Charge-Offs, Net of Recoveries   (13,392 )   (11,284 )   (16,501 )
Balance at End of Period $ 71,893   $ 81,052   $ 109,029  
 
ASSET QUALITY RATIOS:
Net Loan Charge-Offs to Average Gross Loans (4) 2.67 % 2.27 % 3.10 %
Allowance for Loan Losses to Total Gross Loans 3.69 % 4.10 % 5.27 %
Allowance for Loan Losses to Total Non-Performing Loans 159.26 % 161.41 % 75.45 %
Non-Performing Assets to Total Assets 1.62 % 1.86 % 5.38 %
Non-Performing Loans to Gross Loans 2.31 % 2.54 % 6.99 %
Total Non-Performing Assets to Allowance for Loan Losses 64.28 % 63.51 % 133.76 %
 
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS:
Balance at Beginning of Period $ 2,581 $ 2,981 $ 2,141
Provision Charged to Operating Expense   (233 )   (400 )   250  
Balance at End of Period $ 2,348   $ 2,581   $ 2,391  
 

(1) Loans Held for Sale are included in average gross loans.

(2) Commercial and industrial loans include owner-occupied commercial real estate loans.

(3) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.
(4) Ratios calculated on an annualized basis.
 

     
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES

SELECTED FINANCIAL DATA (Unaudited) (Continued)

 
June 30, March 31, June 30,
2012 2012 2011
NON-PERFORMING ASSETS: (In Thousands)
Non-Accrual Loans $ 45,143 $ 50,214 $ 144,496
Loans 90 Days or More Past Due and Still Accruing  

-

   

-

   

-

 
Total Non-Performing Loans 45,143 50,214 144,496
Other Real Estate Owned, Net   1,071     1,260     1,340  
Total Non-Performing Assets $ 46,214 $ 51,474 $ 145,836
Non-Performing Loans in Loans Held for Sale $ 3,489   $ 15,472   $ 22,606  
Non-Performing Assets (including Loans Held for Sale) $ 49,703   $ 66,946   $ 168,442  
 
DELINQUENT LOANS, 30 to 89 days past due and still accruing $ 4,707   $ 10,497   $ 15,644  
 
Delinquent Loans/Total Gross Loans 0.24 % 0.53 % 0.76 %
 
LOAN PORTFOLIO:
Real Estate Loans $ 732,059 $ 717,491 $ 729,526
Residential Loans 107,757 116,566 58,059
Commercial and Industrial Loans 1,070,469 1,102,769 1,234,519
Consumer Loans   39,339     40,152     46,500  
Total Gross Loans 1,949,624 1,976,978 2,068,604
Deferred Loan Fees   636     901     (11 )
Gross Loans, Net of Deferred Loan Fees 1,950,260 1,977,879 2,068,593
Allowance for Loan Losses   (71,893 )   (81,052 )   (109,029 )
Loans Receivable, Net 1,878,367 1,896,827 1,959,564
Loans Held for Sale, at Lower of Cost or Fair value   5,138     55,993     44,105  
Total Loans Receivable, Net $ 1,883,505   $ 1,952,820   $ 2,003,669  
 
LOAN MIX:
Real Estate Loans 37.5 % 36.3 % 35.3 %
Residential Loans 5.5 % 5.9 % 2.8 %
Commercial and Industrial Loans 54.9 % 55.8 % 59.7 %
Consumer Loans   2.1 %   2.0 %   2.2 %
Total Gross Loans   100.0 %   100.0 %   100.0 %
 
DEPOSIT PORTFOLIO:
Demand - Noninterest-Bearing $ 679,085 $ 704,061 $ 600,812
Savings 113,707 108,698 110,935
Money Market Checking and NOW Accounts 557,711 516,628 484,132
Time Deposits of $100,000 or More 684,053 687,573 878,871
Other Time Deposits   350,551     346,766     323,625  
Total Deposits $ 2,385,107   $ 2,363,726   $ 2,398,375  
 
DEPOSIT MIX:
Demand - Noninterest-Bearing 28.5 % 29.8 % 25.1 %
Savings 4.8 % 4.6 % 4.6 %
Money Market Checking and NOW Accounts 23.4 % 21.9 % 20.2 %
Time Deposits of $100,000 or More 28.7 % 29.1 % 36.6 %
Other Time Deposits   14.6 %   14.6 %   13.5 %
Total Deposits   100.0 %   100.0 %   100.0 %
 
CAPITAL RATIOS:
Hanmi Financial
Total Risk-Based

20.01

% 18.74 % 13.92 %
Tier 1 Risk-Based

18.74

% 17.46 % 11.92 %
Tier 1 Leverage

14.69

% 13.44 % 9.09 %
Tangible equity ratio

12.20

% 10.55 % 7.26 %
Hanmi Bank
Total Risk-Based

19.06

% 17.74 % 14.02 %
Tier 1 Risk-Based

17.79

% 16.45 % 12.72 %
Tier 1 Leverage

13.95

% 12.67 % 9.70 %
Tangible equity ratio

14.34

% 12.71 % 10.33 %
 

             
Three Months Ended
HANMI FINANCIAL CORPORATION June 30, 2012 March 31, 2012 June 30, 2011

AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID (Unaudited)

  Interest   Average Interest Average Interest Average
Average Income/ Rate/ Average Income/ Rate/ Average Income/ Rate/
Balance Expense Yield Balance Expense Yield Balance Expense Yield
(In Thousands)

ASSETS

Interest-Earning Assets:
Gross Loans, Net of Deferred Loan Fees 2,003,475 27,241 5.47 % 1,985,071 27,542 5.58 % 2,136,976 29,248 5.49 %
Municipal Securities 44,867 442 3.94 % 44,888 446 3.97 % 13,603 140 4.12 %
Municipal Securities - Tax Exempt 13,011 152 4.68 % 13,283 157 4.73 % 4,125 57 5.53 %
Obligations of Other U.S. Government Agencies 77,390 380 1.96 % 73,446 325 1.77 % 152,438 629 1.65 %
Other Debt Securities 281,934 1,368 1.94 % 294,767 1,327 1.80 % 326,886 2,326 2.85 %
Equity Securities 31,107 176 2.26 % 31,255 157 2.01 % 34,078 133 1.56 %
Federal Funds Sold and Securities Purchased under Agreements to Resell 29,844 31 0.42 % 1,852 2 0.43 % 7,067 9 0.51 %
Term Federal Funds Sold 70,384 168 0.95 % 126,484 325 1.03 % 13,681 18 0.53 %
Interest-Bearing Deposits in Other Banks 90,416   59 0.26 % 105,597   68 0.26 % 115,855   79 0.27 %
 
Total Interest-Earning Assets 2,642,428   30,017 4.57 % 2,676,643   30,349 4.56 % 2,804,709   32,639 4.67 %
 
Noninterest-Earning Assets:
Cash and Cash Equivalents 71,162 69,152 68,371
Allowance for Loan Losses (79,089 ) (88,024 ) (125,152 )
Other Assets

88,931

  84,235   89,039  
 
Total Noninterest-Earning Assets

81,004

  65,363   32,258  
 
TOTAL ASSETS

2,723,432

  2,742,006   2,836,967  
 
 

LIABILITIES AND STOCKHOLDERS' EQUITY

Interest-Bearing Liabilities:
Deposits:
Savings 111,685 586 2.11 % 105,676 583 2.22 % 111,723 734 2.64 %
Money Market Checking and NOW Accounts 514,662 769 0.60 % 465,664 676 0.58 % 488,723 1,010 0.83 %
Time Deposits of $100,000 or More 659,176 1,763 1.08 % 782,562 2,748 1.41 % 926,024 3,477 1.51 %
Other Time Deposits 348,749 835 0.96 % 337,641 912 1.09 % 308,475 971 1.26 %
FHLB Advances 4,103 43 4.22 % 3,259 43 5.31 % 106,710 239 0.90 %
Other Borrowings

-

-

0.00 %

-

-

0.00 % 1,331 1 0.30 %
Junior Subordinated Debentures 82,406   797 3.89 % 82,406   799 3.90 % 82,406   711 3.46 %
 
Total Interest-Bearing Liabilities 1,720,781   4,793 1.12 % 1,777,208   5,761 1.30 % 2,025,392   7,143 1.41 %
 
Noninterest-Bearing Liabilities:
Demand Deposits 673,921 645,759 592,989
Other Liabilities

28,131

  29,907   29,058  
 
Total Noninterest-Bearing Liabilities

702,052

  675,666   622,047  
 
Total Liabilities

2,422,833

2,452,874 2,647,439
Stockholders' Equity

300,599

  289,132   189,528  
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

2,723,432

  2,742,006   2,836,967  
 
NET INTEREST INCOME 25,224 24,588 25,496
 
COST OF DEPOSITS 0.69 % 0.85 % 1.02 %
NET INTEREST SPREAD 3.45 % 3.26 % 3.26 %
NET INTEREST MARGIN 3.84 % 3.69 % 3.65 %
 

       
Six Months Ended
HANMI FINANCIAL CORPORATION June 30, 2012 June 30, 2011

AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID (Unaudited)

  Interest   Average Interest Average
Average Income/ Rate/ Average Income/ Rate/
Balance Expense Yield Balance Expense Yield
(In Thousands)

ASSETS

Interest-Earning Assets:
Gross Loans, Net of Deferred Loan Fees 1,994,273 54,783 5.52 % 2,185,274 60,153 5.55 %
Municipal Securities 44,427 888 4.00 % 15,556 318 4.09 %
Municipal Securities - Tax Exempt 13,147 310 4.72 % 4,294 119 5.54 %
Obligations of Other U.S. Government Agencies 75,418 705 1.87 % 149,392 1,252 1.68 %
Other Debt Securities 287,743 2,696 1.87 % 315,906 4,198 2.66 %
Equity Securities 31,789 333 2.10 % 34,813 265 1.52 %
Federal Funds Sold and Securities Purchased under Agreements to Resell 15,847 33 0.37 % 6,884 17 0.49 %
Term Federal Funds Sold 98,434 493 0.94 % 16,713 45 0.54 %
Interest-Bearing Deposits in Other Banks 98,007   127 0.26 % 119,481   168 0.28 %
 
Total Interest-Earning Assets 2,659,085   60,368 4.57 % 2,848,313   66,535 4.71 %
 
Noninterest-Earning Assets:
Cash and Cash Equivalents 70,204 68,115
Allowance for Loan Losses (83,557 ) (135,411 )
Other Assets

86,762

90,402  
 
Total Noninterest-Earning Assets

73,409

  23,106  
 
TOTAL ASSETS

2,732,494

  2,871,419  
 
 

LIABILITIES AND STOCKHOLDERS' EQUITY

Interest-Bearing Liabilities:
Deposits:
Savings 108,681 1,159 2.14 % 112,398 1,483 2.66 %
Money Market Checking and NOW Accounts 490,163 1,454 0.60 % 468,875 2,012 0.87 %
Time Deposits of $100,000 or More 720,869 4,511 1.26 % 988,336 7,536 1.54 %
Other Time Deposits 343,195 1,747 1.02 % 295,518 1,896 1.29 %
FHLB Advances 3,681 86 4.64 % 130,030 572 0.89 %
Other Borrowings - 1 0.00 % 1,384 1 0.15 %
Junior Subordinated Debentures 82,406   1,596 3.89 % 82,406   1,409 3.45 %
 
Total Interest-Bearing Liabilities 1,748,995   10,554 1.21 % 2,078,947   14,909 1.45 %
 
Noninterest-Bearing Liabilities:
Demand Deposits 659,825 578,172
Other Liabilities 29,573   30,394  
 
Total Noninterest-Bearing Liabilities 689,398   608,566  
 
Total Liabilities 2,438,393 2,687,513
Stockholders' Equity

294,101

  183,906  
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

2,732,494

  2,871,419  
 
NET INTEREST INCOME 49,814 51,626
 
COST OF DEPOSITS 0.77 % 1.07 %
NET INTEREST SPREAD 3.36 % 3.26 %
NET INTEREST MARGIN 3.77 % 3.66 %
 

Non-GAAP Financial Measures

Tangible Common Equity to Tangible Assets Ratio

Tangible common equity to tangible assets ratio is supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles (“GAAP”). This non-GAAP measure is used by management in the analysis of Hanmi Financial and Hanmi Bank’s capital strength. Tangible equity is calculated by subtracting goodwill and other intangible assets from total stockholders’ equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from total stockholders’ equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Hanmi Financial and Hanmi Bank. This disclosure should not be viewed as a substitution for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

The following table reconciles this non-GAAP performance measure to the GAAP performance measure for the periods indicated:

     
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES (Unaudited)

TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO
 
6/30/2012 3/31/2012 6/30/2011
(In Thousands)
Total Assets $

2,846,652

$ 2,771,471 $ 2,710,835
Less Other Intangible Assets   (1,417 )   (1,462 )   (1,825 )
Tangible Assets $

2,845,235

  $ 2,770,009   $ 2,709,010  
 
Total Stockholders' Equity $

348,456

$ 293,718 $ 198,365
Less Other Intangible Assets   (1,417 )   (1,462 )   (1,825 )
Tangible Stockholders' Equity $

347,039

  $ 292,256   $ 196,540  
 
Total Stockholders' Equity to Total Assets Ratio

12.24

% 10.60 % 7.32 %
Tangible Common Equity to Tangible Assets Ratio

12.20

% 10.55 % 7.26 %
 
Common Shares Outstanding 31,489,201 31,489,201 18,907,299
Tangible Common Equity Per Common Share $

11.02

$ 9.28 $ 10.39
 
 
HANMI BANK

NON-GAAP FINANCIAL MEASURES (Unaudited)

TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO
6/30/2012 3/31/2012 6/30/2011
(In Thousands)
Total Assets $

2,841,441

$ 2,766,780 $ 2,705,997
Less Other Intangible Assets       (3 )   (184 )
Tangible Assets $

2,841,441

  $ 2,766,777   $ 2,705,813  
 
Total Stockholders' Equity $

407,407

$ 351,677 $ 279,712
Less Other Intangible Assets       (3 )   (184 )
Tangible Stockholders' Equity $

407,407

  $ 351,674   $ 279,528  
 
Total Stockholders' Equity to Total Assets Ratio

14.34

% 12.71 % 10.34 %
Tangible Common Equity to Tangible Assets Ratio

14.34

% 12.71 % 10.33 %

CONTACT:
Hanmi Financial Corporation
Lonny Robinson
Executive Vice President and Chief Financial Officer
213-368-3200