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

Quarterly report pursuant to Section 13 or 15(d)

Securities (Tables)

Securities (Tables)

3 Months Ended

Mar. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Summary of Investment Securities Available for Sale

The following is a summary of securities available for sale as of March 31, 2017 and December 31, 2016:



	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Estimated Fair Value
	(in thousands)
March 31, 2017
Mortgage-backed securities ^{(1) (2)}	$	262,713	$	862	$	1,480	$	262,095
Collateralized mortgage obligations ⁽¹⁾	87,855		13		940		86,928
U.S. government agency securities	7,499		—		53		7,446
SBA loan pool securities	4,354		—		191		4,163
Municipal bonds-tax exempt	159,203		431		860		158,774
Municipal bonds-taxable	1,045		—		8		1,037
Corporate bonds	5,008		14				5,022
U.S. treasury securities	155		—				155
Mutual funds	22,916		—		526		22,390
Total securities available for sale	$	550,748	$	1,320	$	4,058	$	548,010

December 31, 2016
Mortgage-backed securities ^{(1) (2)}	$	230,489	$	598	$	1,457	$	229,630
Collateralized mortgage obligations ⁽¹⁾	77,447		6		1,002		76,451
U.S. government agency securities	7,499		—		58		7,441
SBA loan pool securities	4,356		—		210		4,146
Municipal bonds-tax exempt	159,789		236		1,995		158,030
Municipal bonds-taxable	13,391		319		9		13,701
Corporate bonds	5,010		5		—		5,015
U.S. treasury securities	156		—		—		156
Mutual funds	22,916		—		522		22,394
Total securities available for sale	$	521,053	$	1,164	$	5,253	$	516,964


⁽¹⁾	Collateralized by residential mortgages and guaranteed by U.S. government sponsored entities.


⁽²⁾	Includes securities collateralized by home equity conversion mortgages with total estimated fair value of $50.5 million and $52.9 million as of March 31, 2017 and December 31, 2016, respectively.

Schedule of Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity

The amortized cost and estimated fair value of securities as of March 31, 2017, by contractual or expected maturity, are shown below. Collateralized mortgage obligations are included in the table shown below based on their expected maturities. Mutual funds do not have contractual maturities. However, they are included in the table shown below as over ten years since the Company intends to hold these securities for at least this duration. All other securities are included based on their contractual maturities.



	Available for Sale
	Amortized Cost		Estimated Fair Value
	(in thousands)
Within one year	$	5,485	$	5,443
Over one year through five years	64,510		64,393
Over five years through ten years	250,661		249,514
Over ten years	230,092		228,660
Total	$	550,748	$	548,010

Available for Sale Securities, Continuous Unrealized Loss Position, Fair Value

Gross unrealized losses on securities available for sale, the estimated fair value of the related securities and the number of securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows as of March 31, 2017 and December 31, 2016:



	Holding Period
	Less Than 12 Months					12 Months or More					Total
	Gross Unrealized Loss		Estimated Fair Value		Number of Securities	Gross Unrealized Loss		Estimated Fair Value		Number of Securities	Gross Unrealized Loss		Estimated Fair Value		Number of Securities
	(in thousands, except number of securities)
March 31, 2017
Mortgage-backed securities	$	1,418	$	149,993	51	$	62	$	7,096	2	$	1,480	$	157,089	53
Collateralized mortgage obligations	557		61,622		27	383		15,888		9	940		77,510		36
U.S. government agency securities	53		7,446		3	—		—		—	53		7,446		3
SBA loan pool securities	—		—		—	191		4,163		2	191		4,163		2
Municipal bonds-tax exempt	860		104,412		45	—		—		—	860		104,412		45
Municipal bonds-taxable	8		1,036		1	—		—		—	8		1,036		1
Mutual funds	413		21,478		4	113		914		3	526		22,392		7
Total	$	3,309	$	345,987	131	$	749	$	28,061	16	$	4,058	$	374,048	147

December 31, 2016
Mortgage-backed securities	$	1,345	$	102,647	38	$	112	$	11,350	3	$	1,457	$	113,997	41
Collateralized mortgage obligations	676		60,786		27	326		10,579		7	1,002		71,365		34
U.S. government agency securities	58		7,441		3	—		—		—	58		7,441		3
SBA loan pool securities	—		—		—	210		4,146		2	210		4,146		2
Municipal bonds-tax exempt	1,995		125,004		54	—		—		—	1,995		125,004		54
Municipal bonds-taxable	9		2,904		2	—		—		—	9		2,904		2
Mutual funds	413		21,478		4	109		916		3	522		22,394		7
Total	$	4,496	$	320,260	128	$	757	$	26,991	15	$	5,253	$	347,251	143

Realized Gains and Losses on Sales of Investment Securities

Realized gains and losses on sales of securities and proceeds from sales of securities were as follows for the periods indicated:



	Three Months Ended March 31,
	2017		2016
	(in thousands)
Gross realized gains on sales of securities	$	269	$	—
Gross realized losses on sales of securities	—		—
Net realized gains on sales of securities	$	269	$	—
Proceeds from sales of securities	$	12,573	$	—