Acquisition (Tables)
|
12 Months Ended |
Dec. 31, 2015 |
|---|
| Business Combinations [Abstract] |
|
| Summary of Purchase Price Allocation Reported, Retrospective Adjustments and Purchase Price Allocation as Remeasured |
The consideration paid, assets acquired and liabilities assumed are summarized in the following table:
|
|
|
|
|
|
As Remeasured (1)
|
|
(In thousands) |
Consideration paid: |
|
CBI stockholders |
$ |
50,000 |
|
Redemption of preferred and cumulative unpaid dividends |
28,675 |
|
Accrued interest on subordinated debentures |
— |
|
|
78,675 |
|
Assets acquired: |
|
Cash and cash equivalents |
197,209 |
|
Securities available for sale |
663,497 |
|
Loans |
297,272 |
|
Premises and equipment |
17,925 |
|
Other real estate owned |
25,952 |
|
Income tax assets, net |
12,011 |
|
Core deposit intangible |
2,213 |
|
FDIC loss sharing assets |
11,413 |
|
Bank-owned life insurance |
18,296 |
|
Servicing assets |
7,497 |
|
Other assets |
14,636 |
|
Total assets acquired |
1,267,921 |
|
Liabilities assumed: |
|
Deposits |
1,098,997 |
|
Subordinated debentures |
18,473 |
|
Rescinded stock obligation |
15,485 |
|
FHLB advances |
10,000 |
|
Servicing liabilities |
6,039 |
|
Other liabilities |
25,675 |
|
Total liabilities assumed |
1,174,669 |
|
Total identifiable net assets |
$ |
93,252 |
|
Bargain purchase gain, net of deferred taxes |
$ |
(14,577 |
) |
|
|
(1) |
There were no measurement period adjustments recorded during the year ended December 31, 2015. All adjustments were recorded in the year ended December 31, 2014. |
|
| Summary of Accretable Yield on PCI Loans Acquired |
The following table summarizes the accretable yield on the PCI loans acquired from the CBI merger at August 31, 2014.
|
|
|
|
|
|
(In thousands) |
Undiscounted contractual cash flows |
$ |
93,623 |
|
Nonaccretable discount |
(17,421 |
) |
Undiscounted cash flow to be collected |
76,202 |
|
Estimated fair value of PCI loans |
65,346 |
|
Accretable yield |
$ |
10,856 |
|
Below is a summary of a acquired purchased credit impaired loans as of the CBI acquisition date, August 31, 2014 and December 31, 2015.
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|
|
|
|
|
|
|
|
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|
|
|
|
|
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|
|
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|
|
|
|
|
As of August 31, 2014 |
Pooled PCI Loans |
|
Non-pooled PCI Loans |
|
|
|
#Loans |
|
#Pools |
|
Carrying Amount (In thousands)
|
|
% of total |
|
#Loans |
|
Carrying Amount (In thousands)
|
|
% of total |
|
Total PCI Loans
(In thousands)
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
152 |
|
|
11 |
|
|
$ |
57,894 |
|
|
96 |
% |
|
2 |
|
|
$ |
2,274 |
|
|
4 |
% |
|
$ |
60,168 |
|
Construction |
— |
|
|
— |
|
|
— |
|
|
0 |
% |
|
1 |
|
|
183 |
|
|
100 |
% |
|
183 |
|
Residential property |
13 |
|
|
4 |
|
|
2,701 |
|
|
60 |
% |
|
5 |
|
|
1,771 |
|
|
40 |
% |
|
4,472 |
|
Total real estate loans |
165 |
|
|
15 |
|
|
60,595 |
|
|
93 |
% |
|
8 |
|
|
4,228 |
|
|
7 |
% |
|
64,823 |
|
Commercial and industrial loans |
34 |
|
|
4 |
|
|
506 |
|
|
100 |
% |
|
— |
|
|
— |
|
|
0 |
% |
|
506 |
|
Consumer loans |
2 |
|
|
1 |
|
|
17 |
|
|
100 |
% |
|
— |
|
|
— |
|
|
0 |
% |
|
17 |
|
Total acquired loans |
201 |
|
|
20 |
|
|
$ |
61,118 |
|
|
94 |
% |
|
8 |
|
|
$ |
4,228 |
|
|
6 |
% |
|
$ |
65,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
As of December 31, 2015 |
Pooled PCI Loans |
|
Non-pooled PCI Loans |
|
|
|
#Loans |
|
#Pools |
|
Carrying Amount (In thousands)
|
|
% of total |
|
#Loans |
|
Carrying Amount (In thousands)
|
|
% of total |
|
Total PCI Loans
(In thousands)
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
71 |
|
|
9 |
|
|
$ |
17,644 |
|
|
95 |
% |
|
2 |
|
|
$ |
995 |
|
|
5 |
% |
|
$ |
18,639 |
|
Construction |
— |
|
|
— |
|
|
— |
|
|
— |
% |
|
— |
|
|
— |
|
|
— |
% |
|
— |
|
Residential property |
2 |
|
|
2 |
|
|
119 |
|
|
10 |
% |
|
2 |
|
|
1,038 |
|
|
90 |
% |
|
1,157 |
|
Total real estate loans |
73 |
|
|
11 |
|
|
17,763 |
|
|
90 |
% |
|
4 |
|
|
2,033 |
|
|
10 |
% |
|
19,796 |
|
Commercial and industrial loans |
11 |
|
|
3 |
|
|
171 |
|
|
100 |
% |
|
— |
|
|
— |
|
|
— |
% |
|
171 |
|
Consumer loans |
1 |
|
|
1 |
|
|
47 |
|
|
100 |
% |
|
— |
|
|
— |
|
|
— |
% |
|
47 |
|
Total acquired loans |
85 |
|
|
15 |
|
|
$ |
17,981 |
|
|
90 |
% |
|
4 |
|
|
$ |
2,033 |
|
|
10 |
% |
|
$ |
20,014 |
|
Allowance for loan losses |
|
|
|
|
$ |
(5,136 |
) |
|
|
|
|
|
$ |
(305 |
) |
|
|
|
$ |
(5,441 |
) |
Total carrying amount |
|
|
|
|
$ |
12,845 |
|
|
|
|
|
|
$ |
1,728 |
|
|
|
|
$ |
14,573 |
|
|
| Business Acquisition, Unaudited Proforma Result of Operation Information |
The following table presents the unaudited pro forma results of operations for the periods presented as if the CBI acquisition had been completed on January 1, 2014. The unaudited pro forma results of operations include the historical accounts of Hanmi Financial and CBI and pro forma adjustments as may be required, including the amortization of intangibles with definite lives and the amortization or accretion of any premiums or discounts arising from fair value adjustments for assets acquired and liabilities assumed. The unaudited pro forma information is intended for informational purposes only and is not necessarily indicative of our future operating results or operating results that would have occurred had the CBI acquisition been completed at the beginning of 2014. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions.
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|
Year Ended December 31, 2014 |
|
|
(In thousands) |
Pro forma revenues (net interest income plus noninterest income) |
|
$ |
225,120 |
|
Pro forma net income from continuing operations |
|
$ |
56,448 |
|
Pro forma earnings per share from continuing operations: |
|
|
Basic |
|
$ |
1.78 |
|
Diluted |
|
$ |
1.77 |
|
|