Hanmi Financial Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2013

Note 13 — Accumulated Other Comprehensive Income

Activity in accumulated other comprehensive income for the three months periods ended September 30, 2013 and 2012 was as follows:


	Unrealized Gains			Unrealized Gains		Unrealized Gains
	and Losses on			and Losses on		and Losses on
	Available-for-Sale			Interest Rate		Interest-Only		Tax (Expense)
	Securities			Swap		Strip		Benefit			Total
	(In thousands)
For the three months ended September 30 2013:
Balance at beginning of period	$	915		$	—	$	17	$	702		$	1,634
Other comprehensive (loss) income before reclassification		(10,020	)		—		—		4,528			(5,492	)
Reclassification from accumulated other comprehensive income		(611	)		—		—		—			(611	)

Period change		(10,631	)		—		—		4,528			(6,103	)

Balance at end of period	$	(9,716	)	$	—	$	17	$	5,230		$	(4,469	)

For the three months ended September 30, 2012:
Balance at beginning of period	$	3,442		$	—	$	14	$	(302	)	$	3,154
Other comprehensive income (loss) before reclassification		3,623			—		2		(1,581	)		2,044
Reclassification from accumulated other comprehensive income		166			—		—		—			166

Period change		3,789			—		2		(1,581	)		2,210

Balance at end of period	$	7,231		$	—	$	16	$	(1,883	)	$	5,364

For the three months ended September 30, 2013, there was a $611,000 reclassification from accumulated other comprehensive income to gains in earnings resulting from the sale of available-for-sale securities. The $611,000 reclassification adjustment out of accumulated other comprehensive income was included in net gain on sales of investment securities under non-interest income. The securities were previously recorded as unrealized gains of $899,000 in accumulated other comprehensive income.

For the three months ended September 30, 2012, there was a $10,000 reclassification from accumulated other comprehensive income to gains in earnings, which resulted from the redemption of available-for-sale securities, and a $176,000 reclassification from other comprehensive loss to OTTI charge in earnings, which resulted from a write-down of the value of investment securities to its fair value. The reclassification adjustments of a $10,000 gain and a $176,000 loss out of accumulated other comprehensive income were included in net gain on sales of investment securities and impairment loss on investment securities, respectively, under non-interest income. The securities with the $10,000 gain from reclassification adjustments were previously recorded as unrealized gains of $4,000 in accumulated other comprehensive income.

Activity in accumulated other comprehensive income for the nine months periods ended September 30, 2013 and 2012 was as follows:


	Unrealized Gains			Unrealized Gains			Unrealized Gains
	and Losses on			and Losses on			and Losses on
	Available-for-Sale			Interest Rate			Interest-Only			Tax (Expense)
	Securities			Swap			Strip			Benefit			Total
	(In thousands)
For the nine months ended September 30 2013:
Balance at beginning of period	$	7,348		$	—		$	16		$	(1,946	)	$	5,418
Other comprehensive (loss) income before reclassification		(16,141	)		—			1			7,176			(8,964	)
Reclassification from accumulated other comprehensive income		(923	)		—			—			—			(923	)

Period change		(17,064	)		—			1			7,176			(9,887	)

Balance at end of period	$	(9,716	)	$	—		$	17		$	5,230		$	(4,469	)

For the nine months ended September 30, 2012:
Balance at beginning of period	$	4,115		$	(9	)	$	20		$	(602	)	$	3,524
Other comprehensive income (loss) before reclassification		4,216			9			(4	)		(1,281	)		2,940
Reclassification from accumulated other comprehensive income		(1,100	)		—			—			—			(1,100	)

Period change		3,116			9			(4	)		(1,281	)		1,840

Balance at end of period	$	7,231		$	—		$	16		$	(1,883	)	$	5,364

For the nine months ended September 30, 2013, there was a $923,000 reclassification from accumulated other comprehensive income to gains in earnings resulting from the redemption and sale of available-for-sale securities. The $923,000 reclassification adjustment out of accumulated other comprehensive income was included in net gain on sales of investment securities under non-interest income. The securities were previously recorded as unrealized gains of $2.4 million in accumulated other comprehensive income.

For the nine months ended September 30, 2012, there was a $1.3 million reclassification from accumulated other comprehensive income to gains in earnings, which resulted from the redemption and sale of available-for-sale securities, and a $176,000 reclassification from other comprehensive loss to OTTI charge in earnings, which resulted from write-down of the value of investment securities to its fair value. The reclassification adjustments of a $1.3 million gain and a $176,000 loss out of accumulated other comprehensive income were included in net gain on sales of investment securities and impairment loss on investment securities, respectively, under non-interest income. The securities with the $1.3 million gain from reclassification adjustments were previously recorded as an unrealized gain of $1.7 million in accumulated other comprehensive income.