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, 2014

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, 2014 and 2013:


	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Estimated Fair Value
	(In thousands)
December 31, 2014
Mortgage-backed securities ^{(1) (2)}	$	571,678	$	2,811	$	1,203	$	573,286
Collateralized mortgage obligations ⁽¹⁾		188,704		417		1,074		188,047
U.S. government agency securities		129,857		172		1,822		128,207
SBA loan pool securities		109,983		52		588		109,447
Municipal bonds-tax exempt		4,319		71		—		4,390
Municipal bonds-taxable		16,615		398		91		16,922
Corporate bonds		17,018		2		72		16,948
U.S. treasury securities		163		—		—		163
Other securities		22,916		57		80		22,893
Equity securities		450		—		36		414

Total securities available for sale	$	1,061,703	$	3,980	$	4,966	$	1,060,717

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. treasury securities		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

⁽¹⁾

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

⁽²⁾

A portion of the mortgage-backed securities is comprised of home mortgage-backed securities backed by home equity conversion mortgages.

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, 2014, by contractual maturity, are shown below. Although mortgage-backed securities and collateralized mortgage obligations have contractual maturities through 2064, 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	$	17,693	$	17,636
Over one year through five years		45,470		45,450
Over five years through ten years		127,601		126,506
Over ten years		87,191		86,485
Mortgage-backed securities		571,678		573,286
Collateralized mortgage obligations		188,704		188,047
Other securities		22,916		22,893
Equity securities		450		414

Total	$	1,061,703	$	1,060,717

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, 2014 and 2013:


	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, 2014
Mortgage-backed securities	$	288	$	102,704		21	$	915	$	50,625		19	$	1,203	$	153,329		40
Collateralized mortgage obligations		350		78,191		21		724		33,308		13		1,074		111,499		34
U.S. government agency securities		—		5,000		1		1,822		73,142		26		1,822		78,142		27
SBA loan pool securities		155		85,062		15		433		11,975		4		588		97,037		19
Municipal bonds-taxable		—		—		—		91		5,538		5		91		5,538		5
Corporate bonds		4		5,021		1		68		7,925		2		72		12,946		3
Other securities		—		—		—		80		1,945		4		80		1,945		4
Equity Securities		36		214		1		—		—		—		36		214		1

Total	$	833	$	276,192		60	$	4,133	$	184,458		73	$	4,966	$	460,650		133

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

Realized Gains and Losses on Sales of Investment Securities

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


	Year Ended December 31,
	2014			2013			2012
Gross realized gains on sales of investment securities	$	2,012		$	1,602		$	1,447
Gross realized losses on sales of investment securities		(1	)		(563	)		(51	)

Net realized gains on sales of investment securities	$	2,011		$	1,039		$	1,396

Proceeds from sales of investment securities	$	169,533		$	78,473		$	102,538