(d) Exhibits
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. 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 our 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 and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. 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 our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.
Forward-looking 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 statements. These factors include the following:
| | • | a 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; |
| | • | the effect of our rating under the Community Reinvestment Act and our ability to address any issues raised in our regulatory exams; |
| | • | 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; |
| | • | 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; |
| | • | a failure in or breach of our operational or security systems or infrastructure, including cyberattacks; |
| | • | the failure to maintain current technologies; |
| | • | the inability to successfully implement future information technology enhancements; |
| | • | difficult business and economic conditions that can adversely affect our industry and business, including competition, fraudulent activity and negative publicity; |
| | • | risks associated with Small Business Administration loans; |
| | • | failure to attract or retain key employees; |
| | • | our ability to access cost-effective funding; |
| | • | fluctuations in real estate values; |
| | • | changes in accounting policies and practices; |
| | • | the imposition of tariffs or other domestic or international governmental policies impacting the value of the products of our borrowers; |
| | • | changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums; |
| | • | the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests; |
| | • | the ability to identify a suitable strategic partner or to consummate a strategic transaction; |
| | • | the adequacy of our allowance for credit losses; |
| | • | our credit quality and the effect of credit quality on our credit losses expense and allowance for credit 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; |
| | • | changes in securities markets; and |
| | • | risks as it relates to cyber security against our information technology and those of our third-party providers and vendors. |
Further, given its ongoing and dynamic nature, it is difficult to predict the continuing impact of the COVID-19 pandemic on our business and results of operation. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and whether the continued reopening of businesses will result in a meaningful increase in economic activity. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations:
| | • | demand for our products and services may decline; |
| | • | if the economy is unable to substantially reopen, and higher levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase; |
| | • | collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; |
| | • | our allowance for credit losses may have to be increased if borrowers experience financial difficulties; |
| | • | a worsening of business and economic conditions or in the financial markets could result in an impairment of certain intangible assets, such as goodwill or our servicing assets; |
| | • | the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; |
| | • | a material decrease in net income or a net loss over several quarters could result in the elimination or a decrease in the rate of our quarterly cash dividend; |
| | • | litigation, regulatory enforcement risk and reputation risk regarding our participation in the Paycheck Protection Program and the risk that the Small Business Administration may not fund some or all PPP loan guaranties; |
| | • | our cyber security risks are increased as the result of an increase in the number of employees working remotely; |
| | • | FDIC premiums may increase if the agency experiences additional resolution costs; and |
| | • | the unanticipated loss or unavailability of key employees due to the outbreak, which could harm our ability to operate our business or execute our business strategy, especially as we may not be successful in finding and integrating suitable replacements. |