EXHIBIT 99.1

Hanmi’s Strong Fourth Quarter and Full Year 2015 Results Led by Solid New Loan Production and 14.2% Growth in Loans Receivable

2015 Fourth Quarter and Full Year Highlights:   

LOS ANGELES, Jan. 26, 2016 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ:HAFC) (or “Hanmi”), the holding company for Hanmi Bank (the “Bank”), today reported fourth quarter net income of $14.8 million, or $0.46 per diluted share, compared with $14.0 million, or $0.44 per diluted share, for the prior quarter and $5.9 million, or $0.19 per diluted share, for the fourth quarter of 2014.

For the full year of 2015, net income was $53.8 million, or $1.68 per diluted share, up 40.2% from the prior year after adjusting for the bargain purchase gain and merger and integration costs recorded primarily in conjunction with the August 31, 2014 acquisition of Central Bancorp, Inc. (“CBI”), the parent company of United Central Bank. Net income for the full year of 2014 was $49.8 million, or $1.56 per diluted share. The prior year included an after-tax bargain purchase gain of $14.6 million, with pre-tax merger and integration costs of $6.6 million in 2014 and $2.0 million in 2015.

Mr. C. G. Kum, President and Chief Executive Officer, said, “Hanmi’s fourth quarter results were excellent and contributed to a strong year of profitable growth in 2015. For the full year, new loan production was up 49%, which led to a 14% growth in loans receivable. We continue to emphasize disciplined underwriting standards and credit quality remains very strong.  In addition, the successful repositioning of our balance sheet since the CBI acquisition has improved the mix of earning assets.  This helped to expand fourth quarter net interest margin, excluding acquisition accounting, to 3.62% or 14 basis points higher than the prior quarter and is an impressive accomplishment in the current environment. Furthermore, our ongoing focus on relationship-driven, high-touch business banking is driving our low cost deposit base with higher demand deposits.”

Mr. Kum continued, “Hanmi’s commitment to improving efficiencies and enhancing profitability pushed net income to $14.8 million in the fourth quarter and $53.8 million for the full year in 2015, an increase of 40% compared to the prior year after excluding the impact of merger and integration costs and accounting adjustments associated primarily with the CBI acquisition. Given our strong financial results in 2015, the Board of Directors increased the quarterly cash dividend in the fourth quarter by 27% to $0.14 per share. Overall, I am very pleased with our performance in 2015 and I believe Hanmi is well-positioned to continue generating profitable growth and capitalizing on market dislocation in the quarters and years ahead.”

Quarterly Results          
 (in thousands, except per share data)           
           
  As of  or for the Three Months Ended  As of or for the Year Ended 
 December 31, September 30, December 31, December 31, December 31, 
  2015   2015   2014   2015   2014  
           
Net income$  14,829  $  13,959  $  5,928  $  53,823  $  49,761  
Net income per diluted common share$  0.46  $  0.44  $  0.19  $  1.68  $  1.56  
           
Assets$  4,234,521  $  4,214,241  $  4,232,443  $  4,234,521  $  4,232,443  
Loans receivable$  3,183,316  $  3,045,072  $  2,788,498  $  3,183,316  $  2,788,498  
Deposits$  3,509,976  $  3,518,694  $  3,556,746  $  3,509,976  $  3,556,746  
           
Return on average assets 1.44%  1.38%  0.56%  1.32%  1.47% 
Pre-tax, pre-provision earnings on average assets 2.08%  2.05%  0.89%  1.97%  1.94% 
Return on average stockholders' equity 11.96%  11.55%  5.21%  11.30%  11.79% 
Net interest margin (1) 3.93%  3.81%  3.80%  3.90%  3.88% 
Net interest margin excluding acquisition accounting (1) 3.62%  3.48%  3.24%  3.47%  3.65% 
Efficiency ratio 56.78%  57.97%  79.64%  58.93%  59.80% 
Efficiency ratio excluding merger and integration costs 56.33%  57.97%  73.01%  57.92%  55.77% 
           
Tangible common equity to tangible assets 11.63%  11.48%  10.67%  11.63%  10.67% 
Tangible common equity per common share$  15.39  $  15.12  $  14.14  $  15.39  $  14.14  
           
(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.     
           

Results of Operations 

Fourth quarter net interest income increased $1.6 million or 4.4% to $37.6 million from $36.0 million in the third quarter primarily from the solid expansion of loans receivable and the related improvement in the mix of earning assets. On a year-over-year basis, net interest income was up from $37.4 million in the fourth quarter last year. Net interest income of $148.1 million for the full year in 2015 increased 20.7% compared with $122.7 million for the full year in 2014.  The year-over-year improvement in net interest income reflects the 20.3% growth in average interest-earning assets. 

Net interest margin (on a taxable equivalent basis) for the fourth quarter of 2015 was 3.93% compared with 3.81% for the third quarter of 2015 and 3.80% for the year-ago period.  The increase in net interest margin for the fourth quarter compared with the preceding quarter was primarily due to loan growth and the related change in the mix of earning assets. For the full year of 2015, net interest margin was 3.90% compared with 3.88% for the full year of 2014.

For the fourth quarter of 2015, Hanmi recorded a negative provision for loan losses of $3.8 million, which included a $2.3 million provision for losses on PCI loans. For the prior quarter, the negative provision for loan losses was $3.7 million, which also included a $1.8 million provision for losses on PCI loans.  For the year ago period, Hanmi recorded a provision for loan losses of $1.2 million, which included a $1.0 million provision for losses on PCI loans.

Hanmi recorded a negative loan loss provision of $11.6 million for the full year of 2015, which included a $4.4 million provision for losses on PCI loans, compared with a negative loan loss provision of $6.3 million for the full year of 2014, which included a $1.0 million provision for losses on PCI loans.

The impact of the CBI acquisition accounting adjustments on core loan yield, core deposit cost, net interest income and net interest margin are summarized in the following tables. 

             
  Three Months Ended  Year Ended   
 December 31, September 30, December 31, December 31, December 31,   
  2015   2015   2014   2015   2014    
Core loan yield 4.75%  4.76%  4.78%  4.75%  4.82%   
Accretion of discount on purchased loans 0.24%  0.24%  0.54%  0.38%  0.19%   
As reported 4.99%  5.00%  5.32%  5.13%  5.01%   
             
Core deposit cost 0.57%  0.60%  0.63%  0.60%  0.55%   
Accretion of time deposits premium 0.12%  0.16%  0.20%  0.16%  0.08%   
As reported 0.45%  0.44%  0.43%  0.44%  0.47%   
             
             
 Three Months Ended 
 December 31, 2015 September 30, 2015 December 31, 2014 
  Amount   Rate   Amount   Rate   Amount   Rate  
      (in thousands)      
Net interest income and net interest margin excluding acquisition accounting (1)$   34,889    3.62% $   32,996    3.48% $   31,891    3.24% 
Accretion of discount on Non-PCI loans   2,090   0.21%    1,209   0.13%    2,802   0.28% 
Accretion of discount on PCI loans   (208)  -0.02%    514   0.05%    963   0.10% 
Accretion of time deposits premium   1,146   0.12%    1,378   0.15%    1,747   0.18% 
Amortization of subordinated debentures discount   (51)    -     (46)    -     (36)    -  
Net impact   2,977   0.31%    3,055   0.33%    5,476   0.56% 
As reported (1)$   37,866    3.93% $   36,051    3.81% $   37,367    3.80% 
             
             
 Year ended     
 December 31, 2015 December 31, 2014     
  Amount   Rate   Amount   Rate      
    (in thousands)        
Net interest income and net interest margin excluding acquisition accounting (1)$   131,996    3.47% $   115,238    3.65%     
Accretion of discount on Non-PCI loans   9,416   0.25%    3,821   0.12%     
Accretion of discount on PCI loans   1,616   0.04%    1,448   0.04%     
Accretion of time deposits premium   5,634   0.15%    2,338   0.07%     
Amortization of subordinated debentures discount   (176)  -0.01%    (71)  -      
Net impact   16,490   0.43%    7,536   0.23%     
As reported (1)$   148,486    3.90% $   122,774    3.88%     
             
             
(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.       


Fourth quarter noninterest income decreased $1.5 million or 11.1% to $12.1 million from $13.6 million for the third quarter of 2015 primarily due to a $2.2 million decrease in disposition gains on PCI loans and $1.6 million decrease in gain on sales of securities, which more than offset a $2.3 million increase in gain on sale of SBA loans.  Noninterest income increased $3.1 million or 34.2% from $9.0 million for the year ago period primarily because of a $2.6 million increase in gains on sale of SBA loans and a $0.7 million increase in disposition gains on PCI loans.  Gains on sales of SBA loans were $3.9 million for the fourth quarter 2015, up from $1.6 million from the third quarter of 2015 and up from $1.2 million from the year-ago period.  Gain on sales of securities were $467,000 for the fourth quarter of 2015 compared with $2.0 million for the third quarter of 2015 and $159,000 for the fourth quarter last year. Disposition gains on PCI loans were $2.1 million for the fourth quarter of 2015, compared with $4.3 million for the prior quarter, and $1.4 million for the fourth quarter last year. PCI loans were $20.0 million at the end of 2015, down 55.0% from a year ago.

Noninterest expense for the fourth quarter decreased $536,000, or 1.9%, to $28.2 million from $28.7 million for the preceding quarter as savings from the 2015 third quarter branch consolidations were partially offset by an increase in other operating expenses that were related to a change in the provision for off-balance sheet commitments and a change in the valuation allowances related to acquired SBA loan servicing, along with higher merger and integration costs related to Hanmi’s pursuit of a potential acquisition during the fourth quarter.  Noninterest expense decreased $8.7 million, or 23.6%, from $36.9 million in the fourth quarter last year primarily due to merger and integrations costs and professional fees in the prior year period related to the acquisition of CBI.  As a result of the decrease in noninterest expense, coupled with the improvements in revenue from the growth in earning assets, the efficiency ratio excluding merger and integration costs, improved to 56.33% in the fourth quarter from 57.97% in the prior quarter and 73.01% in the year-ago period.

Salaries and employee benefit costs in the fourth quarter of 2015 decreased 7.8% to $14.8 million compared with $16.1 million for the third quarter of 2015, and decreased 11.6% from $16.8 million for the fourth quarter of 2014, primarily due to the branch consolidations completed in the first and third quarters of 2015. Occupancy and equipment costs decreased 19.4% to $3.9 million compared with $4.9 million for the third quarter of 2015 and decreased 8.8% from $4.3 million in the prior year period primarily related to the branch consolidations.  Professional fees were $1.9 million for the fourth quarter, unchanged from the preceding quarter, and decreased 59.8% from $4.8 million in the prior year period. The year over year decrease was primarily related to higher professional fees in the prior year period associated with the acquisition of CBI. Advertising and promotion expense for the fourth quarter of $1.3 million were unchanged from both the previous quarter and the fourth quarter last year. Other operating expenses were $3.9 million for the fourth quarter, up 94.9% from $2.0 million in the prior quarter and up 40.9% from $2.7 million in the prior year period. The sequential quarter increase in other operating expenses was primarily due to a $0.8 million change in the provision for off-balance sheet commitments and a $0.9 million change in the valuation allowances related to acquired SBA loan servicing.

Hanmi recorded a provision for income taxes of $10.5 million for the fourth quarter of 2015, representing an effective tax rate of 41.4%, compared with $10.6 million, representing an effective tax rate of 43.1%, for the preceding quarter and $2.3 million, representing an effective rate of 28.0% for the fourth quarter of 2014. For the full year ended December 31, 2015 and 2014, Hanmi recorded a provision for income taxes of $38.2 million and $22.9 million, respectively, representing effective tax rates of 41.5% and 31.5%, respectively.  The year over year increase was due primarily to the $14.6 million after-tax bargain purchase gain recognized in 2014.

Financial Position
Total assets were $4.23 billion at December 31, 2015, a 0.5% increase from $4.21 billion at September 30, 2015 and unchanged from a year ago.  The sequential quarter increase in total assets was primarily due to an increase in loans receivable.

Loans receivable, before the allowance for loan losses, were $3.18 billion at December 31, 2015, up 4.5% from $3.05 billion at September 30, 2015 and up 14.2% from $2.79 billion at December 31, 2014.  The increase in loans from the end of the 2014 fourth quarter reflects Hanmi’s strong loan production throughout 2015.  Loans held for sale, representing the guaranteed portion of SBA loans, were $2.9 million at December 31, 2015 compared with $4.9 million at the end of the 2015 third quarter and $5.5 million at the end of the 2014 fourth quarter. 

New loan production for the 2015 fourth quarter was $268.5 million, 31.4% higher than the fourth quarter last year and outpaced $171.8 million of loan payoffs.  Fourth quarter 2015 new loan production was comprised of $199.5 million of commercial real estate loans, $39.6 million of commercial and industrial loans, $27.4 million of SBA loans, and $2.1 million of consumer loans.  For the 2015 third quarter, new loan production was $306.0 million while loan payoffs were $105.7 million.  Loan purchases for the 2015 fourth quarter were $114.7 million, compared with $36.2 million in the third quarter of 2015. SBA loan sales for the 2015 fourth quarter were $29.3 million, compared with $20.6 million for the third quarter of 2015.

Deposits were $3.51 billion at the end of the 2015 fourth quarter, compared with $3.52 billion at the end of the preceding quarter and $3.56 billion at the end of the fourth quarter of 2014.  The cost of deposits was 0.45% for the fourth quarter of 2015 compared with 0.44% for the third quarter of 2015 and 0.43% for the fourth quarter a year ago.

At December 31, 2015, stockholders’ equity was $493.9 million, compared with $485.4 million and $453.4 million at September 30, 2015 and December 31, 2014, respectively.  Tangible common stockholders’ equity was $492.2 million, or 11.63% of tangible assets, compared with $483.7 million, or 11.48% of tangible assets, and $451.3 million, or 10.67%, of tangible assets, at September 30, 2015 and December 31, 2014, respectively.  Tangible book value per share was $15.39, up 8.8% from a year ago and 1.8% from the preceding quarter. 

During the quarter, Hanmi declared a cash dividend on its common stock for the 2015 fourth quarter of $0.14 per share, up 27.3% from $0.11 per share in the prior quarter.  The dividend was paid on January 15, 2016, to stockholders of record as of the close of business on December 31, 2015.  

Asset Quality
Nonperforming loans, excluding PCI loans, were $19.1 million at the end of the fourth quarter of 2015, or 0.60% of loans, compared with $23.9 million at the end of the third quarter of 2015, or 0.79% of loans and $25.3 million, or 0.92% of loans at the end of the fourth quarter last year.

OREO was $8.5 million at the end of the fourth quarter of 2015, down from $13.2 million at the end of the prior quarter. OREO primarily resulted from the 2014 fourth quarter CBI acquisition.  Classified loans were $39.3 million, or 1.24% of loans, at December 31, 2015, compared with $40.1 million, or 1.32% of loans, at September 30, 2015 and $47.4 million, or 1.72% of loans, a year ago.  Nonperforming assets were $27.6 million at the end of the fourth quarter of 2015, or 0.65% of assets, compared with 0.88% of assets at the end of the prior quarter and 0.97% of assets at the end of the same quarter last year.

Gross charge-offs for the fourth quarter of 2015 were $529,000, compared with $1.7 million for the preceding quarter and $1.4 million for the same period a year ago. Recoveries of previously charged-off loans for the fourth quarter of 2015 were $937,000, compared with $994,000 for the preceding quarter and $1.7 million for the fourth quarter of 2014. As a result, there were net recoveries of $408,000 for the fourth quarter of 2015, compared to net charge-offs of $754,000 for the preceding quarter and net recoveries of $283,000 for the year ago period. 

The allowance for loan losses was $42.9 million as of December 31, 2015, generating an allowance of loan losses to loans receivable ratio of 1.35% compared with 1.52% as of September 30, 2015 and 1.89% as of December 31, 2014.

Conference Call                            
Management will host a conference call today, January 26, 2016 at 1:00 p.m. PT (4:00 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 by dialing 1-877-407-9039 before 1:00 p.m. PT, 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.

About Hanmi Financial Corporation
Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 42 full-service branches and 6 loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. 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, strategic alternatives for a possible business combination, merger or sale transaction, 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 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 of Hanmi Bank to make distributions to Hanmi Financial, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests; ability to identify a suitable strategic partner or to consummate a strategic transaction; adequacy of our allowance for loan losses; credit quality and the effect of credit quality on our provision for loan 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, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2014, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file 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)          
           
 December 31, September 30, Percentage December 31, Percentage 
  2015   2015  Change  2014  Change 
Assets          
Cash and due from banks$  164,364  $  235,342   -30.2% $  158,320   3.8% 
Securities available for sale, at fair value   698,296     669,340   4.3%    1,060,717   -34.2% 
Loans held for sale, at the lower of cost or fair value   2,874     4,871   -41.0%    5,451   -47.3% 
Loans receivable, net of allowance for loan losses    3,140,381     2,998,712   4.7%    2,735,832   14.8% 
Accrued interest receivable   9,501     8,722   8.9%    9,749   -2.5% 
Premises and equipment, net   29,834     29,857   -0.1%    30,912   -3.5% 
Other real estate owned ("OREO"), net   8,511     13,249   -35.8%    15,790   -46.1% 
Customers' liability on acceptances   3,586     2,704   32.6%    1,847   94.2% 
Servicing assets   11,744     11,986   -2.0%    13,773   -14.7% 
Other intangible assets, net   1,701     1,795   -5.2%    2,080   -18.2% 
Federal Home Loan Bank ("FHLB") stock, at cost   16,385     16,385   0.0%    17,580   -6.8% 
Federal Reserve Bank ("FRB") stock, at cost   14,098     14,098   0.0%    12,273   14.9% 
Income tax asset   57,174     70,847   -19.3%    84,371   -32.2% 
Bank-owned life insurance   48,340     48,067   0.6%    48,866   -1.1% 
Prepaid expenses and other assets   27,732     88,266   -68.6%    34,882   -20.5% 
Total assets$   4,234,521   $   4,214,241    0.5% $   4,232,443    0.0% 
           
Liabilities and Stockholders' Equity          
Liabilities:          
Deposits:          
Noninterest-bearing$  1,155,518  $  1,114,621   3.7% $  1,022,972   13.0% 
Interest-bearing   2,354,458     2,404,073   -2.1%    2,533,774   -7.1% 
Total deposits   3,509,976     3,518,694   -0.2%    3,556,746   -1.3% 
Accrued interest payable   3,177     2,985   6.4%    3,450   -7.9% 
Bank's liability on acceptances   3,586     2,704   32.6%    1,847   94.2% 
FHLB advances   170,000     150,000   13.3%    150,000   13.3% 
Servicing liabilities   4,784     5,176   -7.6%    5,971   -19.9% 
FDIC loss sharing liability   1,289     1,173   9.9%    2,074   -37.8% 
Rescinded stock obligation   -     -   -     933   -100.0% 
Subordinated debentures   18,703     18,669   0.2%    18,544   0.9% 
Accrued expenses and other liabilities   29,088     29,391   -1.0%    39,491   -26.3% 
Total liabilities   3,740,603      3,728,792    0.3%    3,779,056    -1.0% 
           
Stockholders' equity:          
Common stock   257     257   0.0%    257   0.0% 
Additional paid-in capital   557,761     557,116   0.1%    554,904   0.5% 
Accumulated other comprehensive income (Loss)   (315)    2,158   -114.6%    463   -168.0% 
Retained earnings (Accumulated deficit)   6,422     (3,931)  -263.4%    (32,379)  -119.8% 
Less treasury stock   (70,207)    (70,151)  0.1%    (69,858)  0.5% 
Total stockholders' equity   493,918      485,449    1.7%    453,387    8.9% 
Total liabilities and stockholders' equity$   4,234,521   $   4,214,241    0.5% $   4,232,443    0.0% 
           


          
Hanmi Financial Corporation and Subsidiaries          
Consolidated Statements of Income (Unaudited)         
(In thousands, except share and per share data)         
  Three Months Ended 
 December 31, September 30, Percentage December 31, Percentage
  2015   2015  Change  2014  Change
Interest and dividend income:         
Interest and fees on loans$  38,382  $  36,466   5.3% $  36,457   5.3%
Interest on securities   2,686     2,884   -6.9%    4,473   -40.0%
Dividends on FRB and FHLB stock   580     607   -4.4%    492   17.9%
Interest on deposits in other banks   66     68   -2.9%    40   65.0%
Total interest and dividend income   41,714     40,025   4.2%    41,462   0.6%
Interest expense:         
Interest on deposits   3,946     3,881   1.7%    3,909   0.9%
Interest on subordinated debentures   169     158   7.0%    162   4.3%
Interest on FHLB advances   15     1   1400.0%    35   -57.1%
Total interest expense   4,130     4,040   2.2%    4,106   0.6%
Net interest income before provision for loan losses   37,584     35,985   4.4%    37,356   0.6%
(Negative provision) provision for loan losses   (3,835)    (3,704)  3.5%    1,204   -418.5%
Net interest income after provision for loan losses   41,419     39,689   4.4%    36,152   14.6%
Noninterest income:         
Service charges on deposit accounts   3,142     3,378   -7.0%    3,449   -8.9%
Trade finance and other service charges and fees   1,130     1,115   1.3%    1,606   -29.6%
Gain on sale of Small Business Administration ("SBA") loans   3,871     1,621   138.8%    1,227   215.5%
Net gain on sales of securities   467     2,048   -77.2%    159   193.7%
Disposition gains on Purchased Credit Impaired ("PCI") loans   2,140     4,334   -50.6%    1,432   49.4%
Other operating income   1,306     1,065   22.6%    1,111   17.6%
Total noninterest income   12,056     13,561   -11.1%    8,984   34.2%
Noninterest expense:         
Salaries and employee benefits   14,841     16,097   -7.8%    16,791   -11.6%
Occupancy and equipment   3,948     4,896   -19.4%    4,331   -8.8%
Data processing   1,436     1,418   1.3%    2,333   -38.4%
Professional fees   1,923     1,940   -0.9%    4,778   -59.8%
Supplies and communications   943     880   7.2%    887   6.3%
Advertising and promotion   1,342     1,290   4.0%    1,293   3.8%
OREO expense   (322)    225   -243.1%    686   -146.9%
Other operating expenses   3,851     1,976   94.9%    2,734   40.9%
Merger and integration costs   224     -   -     3,074   -92.7%
Total noninterest expense   28,186     28,722   -1.9%    36,907   -23.6%
Income from continuing operations before provision for income taxes   25,289     24,528   3.1%    8,229   207.3%
Provision for income taxes   10,460     10,569   -1.0%    2,301   354.6%
Net income$   14,829   $   13,959    6.2% $   5,928    150.2%
            
Basic earnings per share:$  0.46  $  0.44    $  0.19   
Diluted earnings per share:$  0.46  $  0.44    $  0.19   
          
Weighted-average shares outstanding:         
Basic   31,830,276     31,799,573       31,734,129   
Diluted   31,949,502     31,909,808       32,021,391   
Common shares outstanding   31,974,359     31,977,207       31,910,203   
          
          


Hanmi Financial Corporation and Subsidiaries       
Consolidated Statements of Income (Unaudited)      
(In thousands, except share and per share data)      
  Year Ended December 31,  
 December 31, December 31, Percentage 
  2015   2014  Change 
Interest and dividend income:      
Interest and fees on loans$  148,797  $  122,222   21.7% 
Interest on securities   12,422     12,638   -1.7% 
Dividends on FRB and FHLB stock   2,786     1,767   57.7% 
Interest on deposits in other banks   221     107   106.5% 
Total interest and dividend income   164,226     136,734   20.1% 
Interest expense:      
Interest on deposits   15,410     13,560   13.6% 
Interest on FHLB advances   76     151   -49.7% 
Interest on subordinated debentures   623     235   165.1% 
Interest on rescinded stock obligation   -     87   -100.0% 
Total interest expense   16,109     14,033   14.8% 
Net interest income before provision for loan losses   148,117     122,701   20.7% 
Negative provision for loan losses   (11,614)    (6,258)  85.6% 
Net interest income after provision for loan losses   159,731     128,959   23.9% 
Noninterest income:      
Bargain purchase gain, net of deferred taxes   -     14,577   -100.0% 
Service charges on deposit accounts   12,900     11,374   13.4% 
Trade finance and other service charges and fees   4,623     4,946   -6.5% 
Gain on sale of Small Business Administration ("SBA") loans   8,749     3,494   150.4% 
Net gain on sales of securities   6,611     2,011   228.7% 
Disposition gains on Purchased Credit Impaired ("PCI") loans   10,167     1,432   610.0% 
Other operating income   4,552     4,462   2.0% 
Total noninterest income   47,602     42,296   12.5% 
Noninterest expense:      
Salaries and employee benefits   62,864     50,177   25.3% 
Occupancy and equipment   17,371     12,295   41.3% 
Data processing   6,321     6,080   4.0% 
Professional fees   7,905     7,564   4.5% 
Supplies and communications   3,582     2,612   37.1% 
Advertising and promotion   4,201     3,435   22.3% 
OREO expense   307     (49)  -726.5% 
Other operating expenses   10,806     9,911   9.0% 
Merger and integration costs   1,971     6,646   -70.3% 
Total noninterest expense   115,328     98,671   16.9% 
Income from continuing operations before provision for income taxes   92,005     72,584   26.8% 
Provision for income taxes   38,182     22,379   70.6% 
Income from continuing operations, net of taxes$   53,823   $   50,205    7.2% 
Discontinued operations      
Income from operations of discontinued subsidiary
 (including gain on disposal of $51 in the second quarter of 2014)
   -     37   -100.0% 
Income tax expense   -     481   -100.0% 
Loss from discontinued operations   -     (444)  -100.0% 
Net income$   53,823   $   49,761    8.2% 
      -  
Basic earnings per share:      
Income from continuing operations, net of taxes$  1.69  $  1.58    
Income from discontinued operations, net of taxes   -     (0.01)   
Basic earnings per share$  1.69  $  1.57    
Diluted earnings per share:      
Income from continuing operations, net of taxes$  1.68  $  1.57    
Income from discontinued operations, net of taxes   -     (0.01)   
Diluted earnings per share$  1.68  $  1.56    
       
Weighted-average shares outstanding:      
Basic   31,788,215     31,696,100    
Diluted   31,876,820     31,978,064    
Common shares outstanding   31,974,359     31,910,203    
       


Hanmi Financial Corporation and Subsidiaries            
Selected Financial Data (Unaudited)           
(In thousands, except ratios)           
  As of or for the Three Months Ended   As of or for the Year Ended   
 December 31, September 30, December 31, December 31, December 31,  
  2015   2015   2014   2015   2014   
Average balances:           
Loans (1) $  3,049,544  $  2,895,336  $  2,719,692  $  2,901,698  $  2,440,682   
Securities   649,565     721,472     1,082,344     788,156     648,937   
FRB and FHLB stock   30,483     29,916     30,262     30,049     27,792   
Interest-bearing deposits in other banks   90,653     109,016     73,348     85,974     45,727   
Interest-earning assets   3,820,245     3,755,740     3,905,646     3,805,877     3,163,141   
Assets   4,083,002     4,021,642     4,187,559     4,076,669     3,410,751   
Deposits   3,516,225     3,484,648     3,578,114     3,502,886     2,872,029   
Borrowings   35,420     20,556     110,418     56,878     81,110   
Interest-bearing liabilities   2,433,140     2,433,718     2,666,651     2,493,513     2,054,680   
Stockholders’ equity   491,785     479,478     450,986     476,401     425,913   
Tangible equity   490,023     477,620     449,276     474,498     425,018   
            
Performance ratios:           
Return on average assets (2) (3) 1.44%  1.38%  0.56%  1.32%  1.47%  
Pre-tax, pre-provision earnings on average assets (2) (3) 2.08%  2.05%  0.89%  1.97%  1.94%  
Return on average stockholders’ equity (2) (3) 11.96%  11.55%  5.21%  11.30%  11.79%  
Return on average tangible equity (2) (3) 12.01%  11.60%  5.23%  11.34%  11.81%  
Efficiency ratio 56.78%  57.97%  79.64%  58.93%  59.80%  
Efficiency ratio excluding merger and integration costs 56.33%  57.97%  73.01%  57.92%  55.77%  
Net interest spread (2) (6) 3.69%  3.58%  3.60%  3.67%  3.65%  
Net interest spread excluding acquisition accounting (2) (6) 3.32%  3.17%  2.96%  3.17%  3.38%  
Net interest margin (2) (6) 3.93%  3.81%  3.80%  3.90%  3.88%  
Net interest margin excluding acquisition accounting (2) (6) 3.62%  3.48%  3.24%  3.47%  3.65%  
Average stockholders' equity to average assets 12.04%  11.92%  10.77%  11.69%  12.49%  
            
Allowance for loan losses:           
Balance at beginning of period$  46,362  $  50,820  $  51,179  $  52,666  $  57,555   
(Negative provision) provision for loan losses   (3,835)    (3,704)    1,204     (11,614)    (6,258)  
Net (charge-offs) recoveries   408     (754)    283     1,883     1,369   
Balance at end of period$  42,935  $  46,362  $  52,666  $  42,935  $  52,666   
            
Asset quality ratios:           
Nonperforming Non-PCI loans to loans (4) 0.60%  0.79%  0.92%  0.60%  0.92%  
Nonperforming assets to assets (4) 0.65%  0.88%  0.97%  0.65%  0.97%  
Nonperforming Non-PCI loans to allowance for loan losses (4) (5) 50.99%  55.40%  48.00%  50.99%  48.00%  
Net loan (recoveries) charge-offs to average loans (2) -0.05%  0.10%  -0.04%  -0.06%  -0.06%  
Allowance for loan losses to loans 1.35%  1.52%  1.89%  1.35%  1.89%  
Allowance for loan losses to nonperforming Non-PCI loans (4) (5) 196.12%  180.52%  204.26%  196.12%  204.26%  
            
Allowance for off-balance sheet items:           
Balance at beginning of period$  556  $  962  $  1,544  $  1,366  $  1,248   
(Negative provision) provision for loan losses   430     (406)    (178)    (380)    118   
Balance at end of period$  986  $  556  $  1,366  $  986  $  1,366   
            
Nonperforming assets (4):           
Nonaccrual Non-PCI loans$  19,118  $  23,944  $  25,282       
OREO, net   8,511     13,249     15,790       
Nonperforming assets$  27,629  $  37,193  $  41,072       
            
Delinquent loans, 30 to 89 days past due and still accruing$  4,080  $  1,424  $  9,515       
            
Delinquent loans to loans 0.13%  0.05%  0.34%      
            
Acquired loans           
PCI loans, net$  20,015  $  25,145     44,500       
Allowance for loan losses on PCI loans$  5,441  $  3,138     1,025       
Non-PCI loans, net$  154,900  $  179,695     218,276       
Unamortized acquisition discounts on Non-PCI loans$  10,659  $  14,141     19,506       
            


Hanmi Financial Corporation and Subsidiaries        
Selected Financial Data, Continued (Unaudited)       
(In thousands, except ratios)       
        
 December 31, September 30, December 31,  
  2015   2015   2014   
Loan portfolio:       
Commercial real estate loans$  2,657,365  $  2,541,449  $  2,373,212   
Residential real estate loans   193,307     198,105     138,540   
Commercial and industrial loans   306,462     280,784     249,189   
Consumer loans   26,182     24,734     27,557   
Loans receivable   3,183,316     3,045,072     2,788,498   
Loans held for sale, at the lower of cost or fair value   2,874     4,871     5,451   
Total loans$  3,186,190  $  3,049,943  $  2,793,949   
        
Loan mix:       
Commercial real estate loans 83.4%  83.3%  84.8%  
Residential real estate loans 6.1%  6.5%  5.0%  
Commercial and industrial loans 9.6%  9.2%  8.9%  
Consumer loans 0.8%  0.8%  1.0%  
Loans held for sale, at the lower of cost or fair value 0.1%  0.2%  0.3%  
Total loans 100.0%  100.0%  100.0%  
        
Deposit portfolio:       
Demand: noninterest-bearing$  1,155,518  $  1,114,621  $  1,022,972   
  interest-bearing   94,583     87,871     96,882   
Money market and savings   871,863     871,869     820,267   
Time deposits of $250,000 or less   1,010,923     1,068,864     1,224,308   
Time deposits of more than $250,000   377,089     375,469     392,317   
Total deposits$  3,509,976  $  3,518,694  $  3,556,746   
        
Deposit mix:       
Demand: noninterest-bearing 32.9%  31.7%  28.8%  
  interest-bearing 2.7%  2.5%  2.7%  
Money market and savings 24.8%  24.8%  23.1%  
Time deposits of $250,000 or less 28.8%  30.3%  34.4%  
Time deposits of more than $250,000 10.8%  10.7%  11.0%  
Total deposits 100.0%  100.0%  100.0%  
        
Capital ratios (7):       
Hanmi Financial       
Total risk-based capital 14.86%  14.75%  15.89%  
Tier 1 risk-based capital 13.60%  13.49%  14.63%  
Common equity tier 1 capital 13.60%  13.49%    -    
Tier 1 leverage capital ratio 11.31%  11.19%  10.91%  
Hanmi Bank       
Total risk-based capital 14.81%  14.69%  15.18%  
Tier 1 risk-based capital 13.55%  13.43%  13.93%  
Common equity tier 1 capital 13.55%  13.43%    -    
Tier 1 leverage capital ratio 11.27%  11.14%  10.39%  
        
        
(1)  Includes loans held for sale       
(2)  Annualized       
(3)  Amount calculated based on net income from continuing operations      
(4)  Excludes PCI loans       
(5)  Excludes allowance for loan losses allocated to PCI loans      
(6)  Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.   
(7)  Basel III rules became effective 1/1/15, with transitional provisions, and all prior period date is based on Basel I rules.  


Hanmi Financial Corporation and Subsidiaries             
Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited) 
(In thousands, except ratios) 
  
 Three Months Ended    
 December 31, 2015 September 30, 2015 December 31, 2014    
  InterestAverage  InterestAverage  InterestAverage    
 AverageIncome /Yield / AverageIncome /Yield / AverageIncome /Yield /    
 BalanceExpenseRate BalanceExpenseRate BalanceExpenseRate    
Assets               
Interest-earning assets:               
Loans (1)$  3,049,544 $  38,382  4.99% $  2,895,336 $  36,466  5.00% $  2,719,692 $  36,457  5.32%    
Securities (2)   649,565    2,968  1.83%    721,472    2,950  1.64%    1,082,344    4,484  1.66%    
FRB and FHLB stock   30,483    580  7.61%    29,916    607  8.12%    30,262    492  6.50%    
Interest-bearing deposits in other banks   90,653    66  0.29%    109,016    68  0.25%    73,348    40  0.22%    
Total interest-earning assets   3,820,245    41,996  4.36%    3,755,740    40,091  4.24%    3,905,646    41,473  4.21%  
              
Noninterest-earning assets:             
Cash and due from banks   92,497       89,241       87,410     
Allowance for loan losses   (46,634)      (50,416)      (52,155)    
Other assets   216,894       227,077       246,658     
Total noninterest-earning assets   262,757       265,902       281,913     
              
Total assets$  4,083,002     $  4,021,642     $  4,187,559      
              
Liabilities and Stockholders' Equity             
Interest-bearing liabilities:             
Deposits:             
Demand: interest-bearing$  91,116 $  25  0.11% $  91,111 $  31  0.13% $  63,645 $  22  0.14%  
Money market and savings   881,375    1,107  0.50%    860,595    1,112  0.51%    857,177    1,015  0.47%  
Time deposits   1,425,229    2,814  0.78%    1,461,456    2,738  0.74%    1,635,411    2,872  0.70%  
FHLB advances   16,739    15  0.36%    1,902    1  0.21%    78,478    35  0.18%    
Rescinded stock obligation   -    -  0.00%    15    -  0.00%    13,426    -   0.00%    
Subordinated debentures   18,681    169  3.59%    18,639    158  3.36%    18,514    162  3.47%    
Total interest-bearing liabilities   2,433,140    4,130  0.67%    2,433,718    4,040  0.66%    2,666,651    4,106  0.61%    
                
Noninterest-bearing liabilities:               
Demand deposits: noninterest-bearing   1,118,505       1,071,486       1,021,881       
Other liabilities   39,572       36,960       48,041       
Total noninterest-bearing liabilities   1,158,077       1,108,446       1,069,922       
                
Total liabilities   3,591,217       3,542,164       3,736,573       
Stockholders' equity   491,785       479,478       450,986       
                
Total liabilities and stockholders' equity$  4,083,002     $  4,021,642     $  4,187,559        
                
Net interest income $   37,866     $   36,051     $   37,367       
                
Cost of deposits   0.45%    0.44%    0.43%    
Net interest spread   3.69%    3.58%    3.60%    
Net interest margin   3.93%    3.81%    3.80%    
                
                
(1) Includes loans held for sale               
(2) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.         
                


Hanmi Financial Corporation and Subsidiaries            
Average Balance, Average Yield Earned, and Average Rate Paid, Continued (Unaudited)      
(In thousands, except ratios)            
             
 For the Year Ended     
 December 31, 2015 December 31, 2014     
  InterestAverage  InterestAverage     
 AverageIncome /Yield / AverageIncome /Yield /     
 BalanceExpenseRate BalanceExpenseRate     
Assets            
Interest-earning assets:            
Loans (1)$  2,901,698 $  148,797  5.13% $  2,440,682 $  122,222  5.01%     
Securities (2)   788,156    12,791  1.62%    648,937    12,711  1.96%     
FRB and FHLB stock   30,049    2,786  9.27%    27,792    1,767  6.36%     
Federal funds sold   -    -    -     3    -  0.00%     
Interest-bearing deposits in other banks   85,974    221  0.26%    45,727    107  0.23%     
Total interest-earning assets   3,805,877    164,595  4.32%    3,163,141    136,807  4.33%     
             
Noninterest-earning assets:            
Cash and due from banks   89,368       76,828        
Allowance for loan losses   (50,862)      (54,817)       
Other assets   232,286       225,599        
Total noninterest-earning assets   270,792       247,610        
             
Total assets$  4,076,669     $  3,410,751         
             
Liabilities and Stockholders' Equity            
Interest-bearing liabilities:            
Deposits:            
Demand: interest-bearing$  89,747 $  114  0.13% $  72,857 $  102  0.14%     
Money market and savings   846,254    4,194  0.50%    697,190    4,757  0.68%     
Time deposits   1,500,634    11,102  0.74%    1,203,523    8,701  0.72%     
FHLB advances   38,110    76  0.20%    69,781    151  0.22%     
Other Borrowings   -    -  0.00%    315    -   0.00%     
Rescinded stock obligation   149    -  0.00%    4,778    87  1.82%     
Subordinated debentures   18,619    623  3.35%    6,236    235  3.77%    
Total interest-bearing liabilities   2,493,513    16,109  0.65%    2,054,680    14,033  0.68%    
            
Noninterest-bearing liabilities:           
Demand deposits: noninterest-bearing   1,066,251       898,459       
Other liabilities   40,504       31,699       
Total noninterest-bearing liabilities   1,106,755       930,158       
            
Total liabilities   3,600,268       2,984,838       
Stockholders' equity   476,401       425,913       
            
Total liabilities and stockholders' equity$  4,076,669     $  3,410,751        
            
Net interest income $   148,486     $   122,774       
            
Cost of deposits   0.44%    0.47%    
Net interest spread   3.67%    3.65%     
Net interest margin   3.90%    3.88%     
             
             
(1)  Includes loans held for sale            
(2)  Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.      
 
             

 

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’s capital strength. Tangible equity is calculated by subtracting goodwill and other intangible assets from stockholders’ equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from 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. 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:

Tangible Common Equity to Tangible Assets Ratio (Unaudited)    
(In thousands, except share, per share data and ratios)     
        
 December 31, September 30, December 31,  
Hanmi Financial Corporation 2015   2015   2014   
Assets$  4,234,521  $  4,214,241  $  4,232,443   
Less other intangible assets   (1,701)    (1,795)    (2,080)  
Tangible assets$  4,232,820  $  4,212,446  $  4,230,363   
        
Stockholders' equity$  493,918  $  485,449  $  453,387   
Less other intangible assets   (1,701)    (1,795)    (2,080)  
Tangible stockholders' equity$  492,217  $  483,654  $  451,307   
        
Stockholders' equity to assets 11.66%  11.52%  10.71%  
Tangible common equity to tangible assets 11.63%  11.48%  10.67%  
        
Common shares outstanding   31,974,359     31,977,207     31,910,203   
Tangible common equity per common share$  15.39  $  15.12  $  14.14   
        
        
Net Income Adjusted for the after-tax bargain purchase gain and merger and integrations costs (Unaudited)  
(In thousands)       
        
  Three Months Ended December 31,   Year Ended December 31, 
  2015   2014   2015   2014 
 Pre-tax income $  25,289  $  8,229  $  92,005  $  72,621 
 Less: after-tax bargain purchase gain    -     -      -     14,577 
 Add: pre-tax merger and integration costs    224     3,074     1,971     6,646 
Adjusted pre-tax income    25,513     11,303     93,976     64,690 
Adjusted income tax expense (a)   10,553     3,161     39,000     25,477 
 Adjusted net income $   14,960   $   8,142   $   54,976   $   39,213  
        
        
(a) Effective income tax of 41.4% and 28.0% for the three months ended December 31, 2015 and 2014, respectively, and 41.5% and 39.4% for the year ended December 31, 2015 and 2014, respectively.
        

 

 

Investor Contacts:
Romolo (Ron) Santarosa
Senior Executive Vice President & Chief Financial Officer
213-427-5636

Lasse Glassen
Investor Relations
Addo Communications
310-829-5400