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

Quarterly report pursuant to Section 13 or 15(d)

Investment Securities (Tables)

Investment Securities (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2014 and December 31, 2013:


	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Estimated Fair Value
	(In thousands)
June 30, 2014
Mortgage-backed securities ⁽¹⁾	$	215,542	$	1,103	$	2,010	$	214,635
Collateralized mortgage obligations ⁽¹⁾		160,422		240		1,037		159,625
U.S. government agency securities		80,960		—		3,096		77,864
Municipal bonds-tax exempt		4,350		97		—		4,447
Municipal bonds-taxable		16,718		158		145		16,731
Corporate bonds		17,017		11		103		16,925
SBA loan pool securities		13,222		—		661		12,561
Other securities		3,030		—		91		2,939
Equity security		250		—		—		250

Total securities available for sale	$	511,511	$	1,609	$	7,143	$	505,977

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 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

⁽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 June 30, 2014, 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		Estimated
	Cost		Fair Value
	(In thousands)
Within one year	$	699	$	728
Over one year through five years		27,879		27,642
Over five years through ten years		74,439		72,430
Over ten years		32,280		30,667
Mortgage-backed securities		215,542		214,635
Collateralized mortgage obligations		160,422		159,625
Equity security		250		250

Total	$	511,511	$	505,977

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 June 30, 2014 and December 31, 2013:


	Holding Period
	Less Than 12 Months						12 Months or More						Total
	Gross		Estimated		Number		Gross		Estimated		Number		Gross		Estimated		Number
	Unrealized		Fair		of		Unrealized		Fair		of		Unrealized		Fair		of
	Loss		Value		Securities		Loss		Value		Securities		Loss		Value		Securities
	(In thousands, except number of securities)
June 30, 2014
Mortgage-backed securities	$	220	$	21,601		5	$	1,790	$	68,558		24	$	2,010	$	90,159		29
Collateralized mortgage obligations		363		67,236		16		674		19,818		9		1,037		87,054		25
U.S. government agency securities		—		—		—		3,096		74,864		27		3,096		74,864		27
Municipal bonds-taxable		—		—		—		145		6,996		7		145		6,996		7
Corporate bonds		—		—		—		103		7,885		2		103		7,885		2
SBA loan pool securities		—		—		—		661		12,561		4		661		12,561		4
Other securities		—		—		—		91		2,935		5		91		2,935		5

Total	$	583	$	88,837		21	$	6,560	$	193,617		78	$	7,143	$	282,454		99

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


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
	(In thousands)
Gross realized gains on sales of investment securities	$	365		$	304		$	1,786		$	313
Gross realized losses on sales of investment securities		(1	)		(1	)		(1	)		(1	)

Net realized gains on sales of investment securities	$	364		$	303		$	1,785		$	312

Proceeds from sales of investment securities	$	45,843		$	15,764		$	131,077		$	24,764
Tax expense on sales of investment securities	$	153		$	127		$	751		$	131