Hanmi Financial Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Investment Securities (Tables)

Investment Securities (Tables)

12 Months Ended

Dec. 31, 2013

Investments Debt And Equity Securities [Abstract]

Summary of Investment Securities Available for Sale

The following is a summary of investment securities available for sale as of December 31, 2013 and 2012:


	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Estimated Fair Value
	(In thousands)
December 31, 2013
Mortgage-backed securities ⁽¹⁾	$	222,768	$	317	$	6,026	$	217,059
Collateralized mortgage obligations ⁽¹⁾		130,636		274		3,217		127,693
U.S. government agency securities		90,852		—		7,316		83,536
Municipal bonds-tax exempt		13,857		110		30		13,937
Municipal bonds-taxable		33,361		73		1,080		32,354
Corporate bonds		21,013		8		186		20,835
U.S. treaury bills		19,998		—		1		19,997
SBA loan pool securities		13,598		—		969		12,629
Other securities		3,030		—		144		2,886

Total securities available for sale	$	549,113	$	782	$	18,969	$	530,926

December 31, 2012
Mortgage-backed securities ⁽¹⁾	$	157,185	$	3,327	$	186	$	160,326
Collateralized mortgage obligations ⁽¹⁾		98,821		1,775		109		100,487
U.S. government agency securities		92,990		222		94		93,118
Municipal bonds-tax exempt		12,209		603		—		12,812
Municipal bonds-taxable		44,248		2,029		135		46,142
Corporate bonds		20,470		176		246		20,400
SBA loan pool securities		14,104		4		82		14,026
Other securities		3,331		73		47		3,357
Equity securities		354		78		40		392

Total securities available for sale	$	443,712	$	8,287	$	939	$	451,060

⁽¹⁾

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

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

The amortized cost and estimated fair value of investment securities as of December 31, 2013, by contractual maturity, are shown below. Although mortgage-backed securities and collateralized mortgage obligations have contractual maturities through 2063, expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Available for Sale
	Amortized Cost		Estimated Fair Value
	(In thousands)
Within one year	$	19,998	$	19,996
Over one year through five years		31,560		31,306
Over five years through ten years		101,992		95,869
Over ten years		42,159		39,003
Mortgage-backed securities		222,768		217,059
Collateralized mortgage obligations		130,636		127,693

Total	$	549,113	$	530,926

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

Gross unrealized losses on investment 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 December 31, 2013 and 2012:


	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)
December 31, 2013
Mortgage-backed securities	$	3,437	$	170,324		51	$	2,589	$	30,947		12	$	6,026	$	201,271		63
Collateralized mortgage obligations		2,353		87,026		27		864		14,657		7		3,217		101,683		34
U.S. government agency securities		3,942		50,932		19		3,374		32,606		12		7,316		83,538		31
Municipal bonds-tax exempt		30		8,562		5		—		—		—		30		8,562		5
Municipal bonds-taxable		787		22,817		16		293		3,813		4		1,080		26,630		20
Corporate bonds		9		5,024		1		177		11,803		3		186		16,827		4
U.S. Treasury bills		1		19,996		2		—		—		—		1		19,996		2
SBA loan pool securities		—		—		—		969		12,629		4		969		12,629		4
Other securities		48		1,957		3		96		929		3		144		2,886		6

Total	$	10,607	$	366,638		124	$	8,362	$	107,384		45	$	18,969	$	474,022		169

December 31, 2012
Mortgage-backed securities	$	186	$	28,354		10	$	—	$	—		—	$	186	$	28,354		10
Collateralized mortgage obligations		109		14,344		5		—		—		—		109		14,344		5
U.S. government agency securities		94		26,894		9		—		—		—		94		26,894		9
Municipal bonds-taxable		126		4,587		4		9		1,964		3		135		6,551		7
Corporate bonds		—		—		—		246		10,738		3		246		10,738		3
SBA loan pool securities		82		11,004		3		—		—		—		82		11,004		3
Other securities		1		12		1		46		953		1		47		965		2
Equity securities		40		96		1		—		—		—		40		96		1

Total	$	638	$	85,291		33	$	301	$	13,655		7	$	939	$	98,946		40

Realized Gains and Losses on Sales of Investment Securities

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


	Year Ended December 31,
	2013			2012			2011
	(In thousands)
Gross realized gains on sales of investment securities	$	1,602		$	1,447		$	2,674
Gross realized losses on sales of investment securities		(563	)		(50	)		(1,039	)

Net realized gains on sales of investment securities	$	1,039		$	1,397		$	1,635

Proceeds from sales of investment securities	$	78,473		$	102,538		$	155,468
Tax expense on sales of investment securities	$	437		$	587		$	687