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)

6 Months Ended

Jun. 30, 2016

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 June 30, 2016 and December 31, 2015:



	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Estimated Fair Value
	(in thousands)
June 30, 2016
Mortgage-backed securities ^{(1) (2)}	$	262,223	$	4,129	$	77	$	266,275
Collateralized mortgage obligations ⁽¹⁾	85,678		554		91		86,141
U.S. government agency securities	15,491		53		—		15,544
SBA loan pool securities	56,553		62		190		56,425
Municipal bonds-tax exempt	160,951		8,475		—		169,426
Municipal bonds-taxable	13,476		616		—		14,092
Corporate bonds	5,014		—		13		5,001
U.S. treasury securities	157		1		—		158
Mutual funds	22,916		382		85		23,213
Total securities available for sale	$	622,459	$	14,272	$	456	$	636,275

December 31, 2015
Mortgage-backed securities ^{(1) (2)}	$	286,450	$	392	$	2,461	$	284,381
Collateralized mortgage obligations ⁽¹⁾	97,904		79		997		96,986
U.S. government agency securities	48,478		—		656		47,822
SBA loan pool securities	63,670		7		411		63,266
Municipal bonds-tax exempt	162,101		1,820		19		163,902
Municipal bonds-taxable	13,932		189		88		14,033
Corporate bonds	5,017		—		24		4,993
U.S. treasury securities	159		1		—		160
Mutual funds	22,916		—		163		22,753
Total securities available for sale	$	700,627	$	2,488	$	4,819	$	698,296


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


⁽²⁾	Include securities collateralized by home equity conversion mortgages with total estimated fair value of $55.7 million and $58.6 million as of June 30, 2016 and December 31, 2015, 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 June 30, 2016, 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	$	1	$	1
Over one year through five years	93,040		93,762
Over five years through ten years	273,361		279,870
Over ten years	256,057		262,642
Total	$	622,459	$	636,275

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 June 30, 2016 and December 31, 2015:



	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)
June 30, 2016
Mortgage-backed securities	$	43	$	10,746	4	$	34	$	10,912	3	$	77	$	21,658	7
Collateralized mortgage obligations	10		12,778		6	81		13,879		7	91		26,657		13
SBA loan pool securities	117		35,639		10	73		14,518		5	190		50,157		15
Corporate bonds	—		—		—	13		5,001		1	13		5,001		1
Mutual funds	—		—		—	85		941		3	85		941		3
Total	$	170	$	59,163	20	$	286	$	45,251	19	$	456	$	104,414	39

December 31, 2015
Mortgage-backed securities	$	1,734	$	193,931	52	$	727	$	21,659	9	$	2,461	$	215,590	61
Collateralized mortgage obligations	335		48,970		18	662		32,964		13	997		81,934		31
U.S. government agency securities	201		23,289		8	455		24,533		8	656		47,822		16
SBA loan pool securities	161		50,499		12	250		7,036		3	411		57,535		15
Municipal bonds-tax exempt	19		8,922		6	—		—		—	19		8,922		6
Municipal bonds-taxable	88		7,106		4	—		—		—	88		7,106		4
Corporate binds	24		4,994		1	—		—		—	24		4,994		1
Mutual funds	66		21,820		3	97		928		3	163		22,748		6
Total	$	2,628	$	359,531	104	$	2,191	$	87,120	36	$	4,819	$	446,651	140

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 June 30,					Six Months Ended June 30,
	2016		2015			2016		2015
	(in thousands)
Gross realized gains on sales of securities	$	—	$	2,067		$	—	$	4,262
Gross realized losses on sales of securities	—		(155		)	—		(166		)
Net realized gains on sales of securities	$	—	$	1,912		$	—	$	4,096
Proceeds from sales of securities	$	—	$	130,594		$	—	$	307,442