2016 Third Quarter Highlights:
Hanmi Financial Corporation (NASDAQ:HAFC) (or “Hanmi”), the holding
company for Hanmi Bank (the “Bank”), today reported third quarter
net income of $13.1 million, or $0.41 per diluted share, down $0.03
per diluted share from the prior quarter primarily due to $1.2
million lower disposition gains on PCI loans and a $1.4 million
charge to finalize prior year FDIC loss share claims, partially
offset by a $1.0 million gain on the sale of a recently
consolidated branch facility.
For the first nine months of 2016, net income
increased 7.9% to $42.1 million, or $1.31 per diluted share,
compared with $39.0 million, or $1.22 per diluted share, for the
first nine months of 2015.
Mr. C. G. Kum, President and Chief Executive
Officer, said, “Hanmi’s performance in the third quarter was
highlighted by solid loan growth coupled with successful deposit
gathering activities. Total loans receivable increased 3% compared
with the prior quarter and 17% from a year ago. We are
achieving this growth while maintaining our disciplined
underwriting standards and strong overall asset quality.
Weighted average loan-to-value and debt coverage ratios on new
commercial real estate loan originations for the third quarter were
50.8% and 1.73 times, respectively. I am also pleased with our
deposit franchise as our money market and savings balances grew 21%
in the quarter, resulting in total deposits increasing 5% for the
quarter and 7% year-over-year. Importantly,
noninterest-bearing deposits increased 4% in the quarter and were
up 11% from a year ago.”
Mr. Kum continued, “We remain highly focused on
driving profitable growth across the enterprise. Considering the
flat yield curve environment, our third quarter net interest margin
of 3.86% remains strong. In addition, through the first nine months
of the year, we have successfully reduced total noninterest expense
by approximately 6% compared with the prior year. To further
enhance operational efficiencies, we completed the closure and
consolidation of two branches during the third quarter in Cerritos
and Garden Grove, California and recently opened a new branch in
Glenview, Illinois. Overall, our third quarter results were solid
and I expect a strong finish to the year.”
Quarterly Results (In thousands, except per
share data)
|
As of or for the Three Months
Ended |
|
As of or for the Nine Months
Ended |
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
2016 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
13,121 |
|
|
$ |
14,148 |
|
|
$ |
13,959 |
|
|
$ |
42,073 |
|
|
$ |
38,997 |
|
Net income per diluted
common share |
$ |
0.41 |
|
|
$ |
0.44 |
|
|
$ |
0.44 |
|
|
$ |
1.31 |
|
|
$ |
1.22 |
|
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
4,402,180 |
|
|
$ |
4,441,333 |
|
|
$ |
4,214,241 |
|
|
$ |
4,402,180 |
|
|
$ |
4,214,241 |
|
Loans receivable |
$ |
3,552,659 |
|
|
$ |
3,449,310 |
|
|
$ |
3,045,072 |
|
|
$ |
3,552,659 |
|
|
$ |
3,045,072 |
|
Deposits |
$ |
3,771,207 |
|
|
$ |
3,589,289 |
|
|
$ |
3,518,694 |
|
|
$ |
3,771,207 |
|
|
$ |
3,518,694 |
|
|
|
|
|
|
|
|
|
|
|
Pre-tax, pre-provision
earnings on average assets |
|
1.80 |
% |
|
|
2.00 |
% |
|
|
2.05 |
% |
|
|
1.88 |
% |
|
|
1.93 |
% |
Return on average
assets |
|
1.19 |
% |
|
|
1.32 |
% |
|
|
1.38 |
% |
|
|
1.30 |
% |
|
|
1.28 |
% |
Return on average
stockholders' equity |
|
9.88 |
% |
|
|
10.98 |
% |
|
|
11.55 |
% |
|
|
10.90 |
% |
|
|
11.06 |
% |
Net interest margin
(1) |
|
3.86 |
% |
|
|
4.02 |
% |
|
|
3.81 |
% |
|
|
3.95 |
% |
|
|
3.89 |
% |
Net interest margin
excluding acquisition accounting (1) |
|
3.75 |
% |
|
|
3.84 |
% |
|
|
3.49 |
% |
|
|
3.76 |
% |
|
|
3.40 |
% |
Efficiency ratio |
|
58.72 |
% |
|
|
56.46 |
% |
|
|
57.97 |
% |
|
|
57.47 |
% |
|
|
59.65 |
% |
Efficiency ratio
excluding merger and integration costs |
|
58.72 |
% |
|
|
56.46 |
% |
|
|
57.97 |
% |
|
|
57.47 |
% |
|
|
58.46 |
% |
|
|
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets (2) |
|
12.04 |
% |
|
|
11.79 |
% |
|
|
11.48 |
% |
|
|
12.04 |
% |
|
|
11.48 |
% |
Tangible common equity
per common share (2) |
$ |
16.42 |
|
|
$ |
16.23 |
|
|
$ |
15.12 |
|
|
$ |
16.42 |
|
|
$ |
15.12 |
|
|
(1) Amounts calculated on a fully taxable equivalent basis
using the current statutory federal tax rate. |
(2) Refer to "Non-GAAP Financial Measures" for further
details. |
|
Results of Operations Net interest income
was $39.6 million for the 2016 third quarter compared with $40.0
million for the 2016 second quarter. Although average loans
increased 4.5% quarter-over-quarter, average money market and
savings increased 20.9% and the average rate paid on these deposits
increased 12 basis points leading to the slight decline in net
interest income. Year-to-date, net interest income improved
6.9% to $118.1 million compared with $110.5 million for the first
nine months of 2015 principally because of the increase in
loans.
Net interest margin (on a taxable equivalent
basis) was 3.86% for the 2016 third quarter, down 16 basis points
from 4.02% for the 2016 second quarter. The decline was
primarily due to lower acquisition accounting effects (seven basis
points), lower loan yields (two basis points) and higher
interest-bearing deposit rates (three basis points). For the first
nine months of 2016, net interest margin was 3.95% compared with
3.89% for the first nine months of 2015.
The impact of acquisition accounting adjustments
on core loan yield, core deposit cost, net interest income and net
interest margin are summarized in the following tables.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
Core loan
yield |
|
4.63 |
% |
|
|
4.78 |
% |
|
|
4.76 |
% |
|
|
4.69 |
% |
|
|
4.75 |
% |
|
|
Accretion
of discount on purchased loans |
|
0.08 |
% |
|
|
0.13 |
% |
|
|
0.24 |
% |
|
|
0.15 |
% |
|
|
0.43 |
% |
|
|
As
reported |
|
4.71 |
% |
|
|
4.91 |
% |
|
|
5.00 |
% |
|
|
4.84 |
% |
|
|
5.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core deposit
cost |
|
0.54 |
% |
|
|
0.52 |
% |
|
|
0.60 |
% |
|
|
0.53 |
% |
|
|
0.61 |
% |
|
|
Accretion
of time deposits premium |
|
0.07 |
% |
|
|
0.09 |
% |
|
|
0.16 |
% |
|
|
0.09 |
% |
|
|
0.17 |
% |
|
|
As
reported |
|
0.47 |
% |
|
|
0.43 |
% |
|
|
0.44 |
% |
|
|
0.44 |
% |
|
|
0.44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
September 30, 2016 |
|
June 30,2016 |
|
September 30,2015 |
|
Amount |
|
Rate |
|
Amount |
|
Rate |
|
Amount |
|
Rate |
|
|
|
|
|
(in thousands) |
|
|
|
|
Net interest
income and net interest margin excluding acquisition
accounting (1) |
$ |
38,874 |
|
|
|
3.75 |
% |
|
$ |
38,671 |
|
|
|
3.84 |
% |
|
$ |
32,996 |
|
|
|
3.49 |
% |
Accretion
of discount on Non-PCI loans |
|
648 |
|
|
|
0.06 |
% |
|
|
994 |
|
|
|
0.10 |
% |
|
|
1,209 |
|
|
|
0.13 |
% |
Accretion
of discount on PCI loans |
|
26 |
|
|
|
0.00 |
% |
|
|
97 |
|
|
|
0.01 |
% |
|
|
514 |
|
|
|
0.05 |
% |
Accretion
of time deposits premium |
|
610 |
|
|
|
0.06 |
% |
|
|
791 |
|
|
|
0.08 |
% |
|
|
1,378 |
|
|
|
0.14 |
% |
Amortization of subordinated debentures discount |
|
(67 |
) |
|
|
-0.01 |
% |
|
|
(62 |
) |
|
|
-0.01 |
% |
|
|
(46 |
) |
|
|
- |
|
Net
impact |
|
1,217 |
|
|
|
0.11 |
% |
|
|
1,820 |
|
|
|
0.18 |
% |
|
|
3,055 |
|
|
|
0.32 |
% |
As reported, on
a fully taxable equivalent basis (1) |
$ |
40,091 |
|
|
|
3.86 |
% |
|
$ |
40,491 |
|
|
|
4.02 |
% |
|
$ |
36,051 |
|
|
|
3.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
September 30, 2016 |
|
September 30, 2015 |
|
|
|
|
|
Amount |
|
Rate |
|
Amount |
|
Rate |
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
Net interest
income and net interest margin excluding acquisition
accounting |
$ |
113,710 |
|
|
|
3.76 |
% |
|
$ |
97,109 |
|
|
|
3.40 |
% |
|
|
|
|
Accretion
of discount on Non-PCI loans |
|
3,396 |
|
|
|
0.11 |
% |
|
|
7,326 |
|
|
|
0.26 |
% |
|
|
|
|
Accretion
of discount on PCI loans |
|
400 |
|
|
|
0.01 |
% |
|
|
1,824 |
|
|
|
0.07 |
% |
|
|
|
|
Accretion
of time deposits premium |
|
2,343 |
|
|
|
0.08 |
% |
|
|
4,488 |
|
|
|
0.16 |
% |
|
|
|
|
Amortization of subordinated debentures discount |
|
(185 |
) |
|
|
-0.01 |
% |
|
|
(125 |
) |
|
|
- |
|
|
|
|
|
Net
impact |
|
5,954 |
|
|
|
0.19 |
% |
|
|
13,513 |
|
|
|
0.49 |
% |
|
|
|
|
As reported, on
a fully taxable equivalent basis (1) |
$ |
119,664 |
|
|
|
3.95 |
% |
|
$ |
110,622 |
|
|
|
3.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts calculated on a fully taxable equivalent basis
using the current statutory federal tax rate. |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the third quarter of 2016, Hanmi recorded a negative
provision for loan losses of $1.5 million, compared with a negative
$3.7 million for the third quarter last year. For the first nine
months of 2016 and 2015, the negative loan loss provision was $4.5
million and $7.8 million, respectively.
Third quarter noninterest income decreased $0.7
million, or 7.5%, to $8.7 million from $9.4 million for the second
quarter of 2016 primarily due to a $1.2 million decrease in
disposition gains on PCI loans and a $0.2 million decrease in gain
on sales of SBA loans, partially offset by a $1.0 million gain from
the sale of a recently consolidated branch facility (recorded in
other operating income). Disposition gains on PCI loans were $0.8
million for the third quarter of 2016, compared with $2.0 million
for the prior quarter, and $4.3 million for the third quarter last
year. PCI loans increased $0.5 million for the third quarter of
2016, while they declined $4.8 million for the second quarter of
2016 and decreased $8.7 million for the third quarter of 2015.
Gains on sales of SBA loans were $1.6 million for the third quarter
2016, compared with $1.8 million for the second quarter of 2016 and
$1.6 million for the year-ago period as the volume of SBA loans
sold increased to $24.1 million from $20.2 million for the
preceding quarter and $20.6 million for the same quarter last year.
Other operating income, which included $1.0 million gain on the
sale of a branch facility, was $2.3 million for the third quarter
of 2016, compared with $1.7 million for the second quarter of 2016
and $1.1 million for the same quarter last year.
For the first nine months of 2016, noninterest
income decreased $10.5 million, or 29.6%, to $25.0 million from
$35.5 million for the same period last year primarily due to a $6.1
million reduction in gain on sale of securities, a $4.6 million
decrease in disposition gains on PCI loans and a $0.6 million
decrease in gain on sales of SBA loans. Sales of securities in the
first nine months of 2016 were de minimis, while securities
transactions resulted in gains of $6.1 million for the same period
last year. Disposition gains on PCI loans were $3.4 million for the
first nine months of 2016, compared with $8.0 million for the same
period last year as PCI loans decreased $4.5 million for the first
nine months of 2016 and declined $19.4 million for the same period
last year. Gains on sales of SBA loans were $4.2 million for the
first nine months of 2016, compared with $4.9 million for the first
nine months of 2015 as the volume of SBA loans sold decreased to
$56.7 million from $59.8 million for the same period last year.
Noninterest expense for the third quarter
increased $0.5 million, or 1.7%, to $28.3 million from $27.9
million for the second quarter primarily due to a $1.4 million
expense related to the finalization of prior year FDIC loss share
claims, which was recorded in other operating expenses. This
was partially offset by lower professional fees.
Noninterest expense decreased $0.4 million, or
1.3%, from $28.7 million for the third quarter last year primarily
due to lower occupancy and equipment expense, coupled with lower
salaries and employee benefits expense related to the branch
closure and consolidations completed in the third quarter last
year, as well as lower professional fees. This was partially
offset by higher expenses related to the aforementioned FDIC loss
share claims, which was recorded in other operating expense.
For the first nine months of 2016, noninterest
expense decreased $4.9 million, or 5.6%, to $82.3 million from
$87.1 million for the same period last year primarily due to
reductions in merger and integration costs, professional fees and
data processing fees related to the August 2014 acquisition of
Central Bancorp, Inc. (“CBI”), along with lower salaries and
employee benefits and occupancy and equipment expense from the
branch closure and consolidation completed in the third quarter
last year. As a result of careful management of noninterest
expense, coupled with the improvements in revenue from the growth
in earning assets, the efficiency ratio improved to 57.47% for the
first nine months of 2016 from 59.65% for the first nine months of
2015.
Hanmi recorded a provision for income taxes of
$8.2 million for the third quarter of 2016, representing an
effective tax rate of 38.6%, compared with $8.9 million or 38.5%
for the preceding quarter and $10.6 million or 43.1% for the third
quarter of 2015. For the first nine months of 2016, Hanmi
recorded a provision for income taxes of $23.3 million,
representing an effective tax rate of 35.6%, compared with $27.7
million or 41.6% for the same period last year.
Financial PositionTotal assets were $4.40
billion at September 30, 2016, a 0.9% decrease from $4.44 billion
at June 30, 2016, and a 4.5% increase from $4.21 billion at
September 30, 2015. The year-over-year increase in total
assets was primarily due to increases in loans receivable.
Loans receivable, before the allowance for loan
losses, were $3.55 billion at September 30, 2016, up 3.0% from
$3.45 billion at June 30, 2016, and up 16.7% from $3.05 billion at
September 30, 2015. The increase in loans from the end of the 2015
third quarter reflects Hanmi’s strong loan production. Loans
held for sale, representing the guaranteed portion of SBA loans,
were $6.4 million at September 30, 2016, compared with $12.8
million at the end of the 2016 second quarter and $4.9 million at
the end of the 2015 third quarter.
New loan production for the 2016 third quarter
was $168.3 million, and outpaced $55.2 million of loan payoffs.
Third quarter 2016 new loan production was comprised of $103.6
million of commercial real estate loans, $33.4 million of
commercial and industrial loans, $29.9 million of SBA loans, and
$1.4 million of consumer loans. For the 2016 second quarter, new
loan production was $265.2 million while loan payoffs were $113.3
million. Loan purchases for the 2016 third quarter were $46.0
million, compared with $66.5 million in the second quarter of 2016.
SBA loan sales for the 2016 third quarter were $24.1 million,
compared with $20.2 million for the second quarter of 2016.
Deposits were $3.77 billion at the end of the
2016 third quarter, compared with $3.59 billion at the end of the
preceding quarter and $3.52 billion at the end of the third quarter
of 2015. The cost of deposits was 0.47% for the third quarter
of 2016 compared with 0.43% for the second quarter of 2016 and
0.44% for the third quarter a year ago.
At September 30, 2016, stockholders’ equity was
$531.2 million, compared with $525.2 million and $485.4 million at
June 30, 2016 and September 30, 2015, respectively. Tangible
common stockholders’ equity was $529.7 million, or 12.04% of
tangible assets, compared with $523.6 million, or 11.79% of
tangible assets, and $483.7 million, or 11.48%, of tangible assets
at June 30, 2016 and September 30, 2015, respectively.
Tangible book value per share was $16.42, up 1.2% from the
preceding quarter and 8.6% from a year ago.
During the third quarter, Hanmi declared a cash
dividend on its common stock of $0.19 per share, up 36% from the
prior quarter and up 73% from a year ago. The dividend was
paid on August 23, 2016, to stockholders of record as of the close
of business on August 8, 2016.
Asset Quality Nonperforming loans, excluding
PCI loans, were $10.9 million or 0.31% of loans at the end of the
third quarter of 2016, compared with $12.3 million or 0.36% of
loans at the end of the second quarter of 2016 and $23.9 million,
or 0.79% of loans at the end of the third quarter last year.
OREO was $11.0 million at the end of the third
quarter of 2016, down from $11.8 million at the end of the prior
quarter. Classified loans were $36.9 million, or 1.04% of loans, at
September 30, 2016, compared with $27.4 million, or 0.79% of loans,
at June 30, 2016, and $40.0 million, or 1.31% of loans, a year ago.
Nonperforming assets were $21.9 million at the end of the
third quarter of 2016, or 0.50% of assets, compared with 0.54% of
assets at the end of the prior quarter and 0.88% of assets at the
end of the same quarter last year.
Gross charge-offs for the third quarter of 2016
were $115,000, compared with $798,000 for the preceding quarter and
$1.8 million for the same period a year ago. Recoveries of
previously charged-off loans for the third quarter of 2016 were
$830,000, compared with $995,000 for the preceding quarter and
$994,000 for the third quarter of 2015. As a result, there were net
recoveries of $715,000 for the third quarter of 2016, compared
to net recoveries of $197,000 for the preceding quarter and net
charge-offs of $752,000 for the year ago period.
The allowance for loan losses was $39.0 million
as of September 30, 2016, generating an allowance of loan losses to
loans receivable ratio of 1.10% compared with 1.15% as of June 30,
2016 and 1.52% as of September 30, 2015.
Conference
Call Management
will host a conference call today, October 18, 2016 at 1:00 p.m. PT
(4:00 p.m. ET) to discuss these results. This call will also
be broadcast live via the internet. Investment professionals
and all current and prospective stockholders are invited to access
the live call by dialing 1-877-407-9039 before 1:00 p.m. PT, using
access code HANMI. To listen to the call online, either live
or archived, visit the Investor Relations page of Hanmi’s website
at www.hanmi.com.
About Hanmi Financial Corporation Headquartered
in Los Angeles, California, Hanmi Financial Corporation owns Hanmi
Bank, which serves multi-ethnic communities through its network of
41 full-service branches and 6 loan production offices in
California, Texas, Illinois, Virginia, New Jersey, New York,
Colorado, Washington and Georgia. Hanmi Bank specializes in real
estate, commercial, SBA and trade finance lending to small and
middle market businesses. Additional information is available at
www.hanmi.com.
Forward-Looking Statements This press release
contains forward-looking statements, which are included in
accordance with the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995. In some cases, you can
identify forward-looking statements by terminology such as “may,”
“will,” “should,” “could,” “expects,” “plans,” “intends,”
“anticipates,” “believes,” “estimates,” “predicts,” “potential,” or
“continue,” or the negative of such terms and other comparable
terminology. Although we believe that the expectations reflected in
the forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or achievements.
All statements other than statements of historical fact are
“forward–looking statements” for purposes of federal and state
securities laws, including, but not limited to, statements about
anticipated future operating and financial performance, financial
position and liquidity, business strategies, regulatory and
competitive outlook, investment and expenditure plans, capital and
financing needs and availability, plans and objectives of
management for future operations, developments regarding our
capital plans, strategic alternatives for a possible business
combination, merger or sale transaction, and other similar
forecasts and statements of expectation and statements of
assumption underlying any of the foregoing. These statements
involve known and unknown risks, uncertainties and other factors
that may cause our actual results, levels of activity, performance
or achievements to differ from those expressed or implied by the
forward-looking statement. These factors include the following:
failure to maintain adequate levels of capital and liquidity to
support our operations; the effect of potential future supervisory
action against us or Hanmi Bank; general economic and business
conditions internationally, nationally and in those areas in which
we operate; volatility and deterioration in the credit and equity
markets; changes in consumer spending, borrowing and savings
habits; availability of capital from private and government
sources; demographic changes; competition for loans and deposits
and failure to attract or retain loans and deposits; fluctuations
in interest rates and a decline in the level of our interest rate
spread; risks of natural disasters related to our real estate
portfolio; risks associated with Small Business Administration
loans; failure to attract or retain key employees; changes in
governmental regulation, including, but not limited to, any
increase in FDIC insurance premiums; ability of Hanmi Bank to make
distributions to Hanmi Financial, which is restricted by certain
factors, including Hanmi Bank’s retained earnings, net income,
prior distributions made, and certain other financial tests;
ability to identify a suitable strategic partner or to consummate a
strategic transaction; adequacy of our allowance for loan losses;
credit quality and the effect of credit quality on our provision
for loan losses and allowance for loan losses; changes in the
financial performance and/or condition of our borrowers and the
ability of our borrowers to perform under the terms of their loans
and other terms of credit agreements; our ability to control
expenses; and changes in securities markets. In addition, we set
forth certain risks in our reports filed with the U.S. Securities
and Exchange Commission, including, Item 1A of our Annual Report on
Form 10-K for the year ended December 31, 2015, our Quarterly
Reports on Form 10-Q, and Current Reports on Form 8-K that we will
file hereafter, which could cause actual results to differ from
those projected. We undertake no obligation to update such
forward-looking statements except as required by law.
Hanmi Financial Corporation and
SubsidiariesConsolidated Balance Sheets
(Unaudited)(In thousands)
|
September 30, |
|
June 30, |
|
Percentage |
|
September 30, |
|
Percentage |
|
|
2016 |
|
|
|
2016 |
|
|
Change |
|
|
2015 |
|
|
Change |
Assets |
|
|
|
|
|
|
|
|
|
Cash and
due from banks |
$ |
130,197 |
|
|
$ |
156,632 |
|
|
|
-16.9 |
% |
|
$ |
235,342 |
|
|
|
-44.7 |
% |
Securities available for sale, at fair value |
|
548,961 |
|
|
|
636,275 |
|
|
|
-13.7 |
% |
|
|
669,340 |
|
|
|
-18.0 |
% |
Loans
held for sale, at the lower of cost or fair value |
|
6,425 |
|
|
|
12,833 |
|
|
|
-49.9 |
% |
|
|
4,871 |
|
|
|
31.9 |
% |
Loans
receivable, net of allowance for loan losses |
|
3,513,687 |
|
|
|
3,409,603 |
|
|
|
3.1 |
% |
|
|
2,998,712 |
|
|
|
17.2 |
% |
Accrued
interest receivable |
|
10,160 |
|
|
|
10,552 |
|
|
|
-3.7 |
% |
|
|
8,722 |
|
|
|
16.5 |
% |
Premises
and equipment, net |
|
27,682 |
|
|
|
29,752 |
|
|
|
-7.0 |
% |
|
|
29,857 |
|
|
|
-7.3 |
% |
Other
real estate owned ("OREO"), net |
|
10,971 |
|
|
|
11,846 |
|
|
|
-7.4 |
% |
|
|
13,249 |
|
|
|
-17.2 |
% |
Customers' liability on acceptances |
|
1,041 |
|
|
|
2,456 |
|
|
|
-57.6 |
% |
|
|
2,704 |
|
|
|
-61.5 |
% |
Servicing
assets |
|
10,833 |
|
|
|
11,337 |
|
|
|
-4.4 |
% |
|
|
11,986 |
|
|
|
-9.6 |
% |
Other
intangible assets, net |
|
1,456 |
|
|
|
1,537 |
|
|
|
-5.3 |
% |
|
|
1,795 |
|
|
|
-18.9 |
% |
Federal
Home Loan Bank ("FHLB") stock, at cost |
|
16,385 |
|
|
|
16,385 |
|
|
|
0.0 |
% |
|
|
16,385 |
|
|
|
0.0 |
% |
Federal
Reserve Bank ("FRB") stock, at cost |
|
- |
|
|
|
14,423 |
|
|
|
-100.0 |
% |
|
|
14,098 |
|
|
|
-100.0 |
% |
Income
tax asset |
|
50,145 |
|
|
|
52,161 |
|
|
|
-3.9 |
% |
|
|
70,847 |
|
|
|
-29.2 |
% |
Bank-owned life insurance |
|
49,149 |
|
|
|
48,851 |
|
|
|
0.6 |
% |
|
|
48,067 |
|
|
|
2.3 |
% |
Prepaid
expenses and other assets |
|
25,088 |
|
|
|
26,690 |
|
|
|
-6.0 |
% |
|
|
88,266 |
|
|
|
-71.6 |
% |
Total assets |
$ |
4,402,180 |
|
|
$ |
4,441,333 |
|
|
|
-0.9 |
% |
|
$ |
4,214,241 |
|
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
1,231,967 |
|
|
$ |
1,189,528 |
|
|
|
3.6 |
% |
|
$ |
1,114,621 |
|
|
|
10.5 |
% |
Interest-bearing |
|
2,539,240 |
|
|
|
2,399,761 |
|
|
|
5.8 |
% |
|
|
2,404,073 |
|
|
|
5.6 |
% |
Total
deposits |
|
3,771,207 |
|
|
|
3,589,289 |
|
|
|
5.1 |
% |
|
|
3,518,694 |
|
|
|
7.2 |
% |
Accrued
interest payable |
|
2,444 |
|
|
|
3,107 |
|
|
|
-21.3 |
% |
|
|
2,985 |
|
|
|
-18.1 |
% |
Bank's
liability on acceptances |
|
1,041 |
|
|
|
2,456 |
|
|
|
-57.6 |
% |
|
|
2,704 |
|
|
|
-61.5 |
% |
FHLB
advances |
|
55,000 |
|
|
|
280,000 |
|
|
|
-80.4 |
% |
|
|
150,000 |
|
|
|
-63.3 |
% |
Servicing
liabilities |
|
3,426 |
|
|
|
3,921 |
|
|
|
-12.6 |
% |
|
|
5,176 |
|
|
|
-33.8 |
% |
FDIC loss
sharing liability |
|
1,701 |
|
|
|
18 |
|
|
|
9350.0 |
% |
|
|
1,173 |
|
|
|
45.0 |
% |
Subordinated debentures |
|
18,888 |
|
|
|
18,821 |
|
|
|
0.4 |
% |
|
|
18,669 |
|
|
|
1.2 |
% |
Accrued
expenses and other liabilities |
|
17,275 |
|
|
|
18,536 |
|
|
|
-6.8 |
% |
|
|
29,391 |
|
|
|
-41.2 |
% |
Total liabilities |
|
3,870,982 |
|
|
|
3,916,148 |
|
|
|
-1.2 |
% |
|
|
3,728,792 |
|
|
|
3.8 |
% |
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity: |
|
|
|
|
|
|
|
|
|
Common
stock |
|
33 |
|
|
|
33 |
|
|
|
0.0 |
% |
|
|
257 |
|
|
|
-87.2 |
% |
Additional paid-in capital |
|
560,906 |
|
|
|
560,089 |
|
|
|
0.1 |
% |
|
|
557,116 |
|
|
|
0.7 |
% |
Accumulated other comprehensive income |
|
7,555 |
|
|
|
9,121 |
|
|
|
-17.2 |
% |
|
|
2,158 |
|
|
|
250.1 |
% |
Retained
earnings (accumulated deficit) |
|
33,413 |
|
|
|
26,396 |
|
|
|
26.6 |
% |
|
|
(3,931 |
) |
|
|
-950.0 |
% |
Less
treasury stock |
|
(70,709 |
) |
|
|
(70,454 |
) |
|
|
0.4 |
% |
|
|
(70,151 |
) |
|
|
0.8 |
% |
Total stockholders' equity |
|
531,198 |
|
|
|
525,185 |
|
|
|
1.1 |
% |
|
|
485,449 |
|
|
|
9.4 |
% |
Total
liabilities and stockholders' equity |
$ |
4,402,180 |
|
|
$ |
4,441,333 |
|
|
|
-0.9 |
% |
|
$ |
4,214,241 |
|
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial Corporation and
SubsidiariesConsolidated Statement of
Income (Unaudited)(In thousands, except share and per
share data)
|
Three Months Ended |
|
September 30, |
|
June 30, |
|
Percentage |
|
September 30, |
|
Percentage |
|
|
2016 |
|
|
|
2016 |
|
|
Change |
|
|
2015 |
|
|
Change |
Interest and
dividend income: |
|
|
|
|
|
|
|
|
|
Interest
and fees on loans |
$ |
41,150 |
|
|
$ |
40,645 |
|
|
|
1.2 |
% |
|
$ |
36,466 |
|
|
|
12.8 |
% |
Interest
on securities |
|
2,701 |
|
|
|
2,886 |
|
|
|
-6.4 |
% |
|
|
2,884 |
|
|
|
-6.3 |
% |
Dividends
on FRB and FHLB stock |
|
419 |
|
|
|
579 |
|
|
|
-27.6 |
% |
|
|
607 |
|
|
|
-31.0 |
% |
Interest
on deposits in other banks |
|
55 |
|
|
|
49 |
|
|
|
12.2 |
% |
|
|
68 |
|
|
|
-19.1 |
% |
Total
interest and dividend income |
|
44,325 |
|
|
|
44,159 |
|
|
|
0.4 |
% |
|
|
40,025 |
|
|
|
10.7 |
% |
Interest
expense: |
|
|
|
|
|
|
|
|
|
Interest
on deposits |
|
4,358 |
|
|
|
3,684 |
|
|
|
18.3 |
% |
|
|
3,881 |
|
|
|
12.3 |
% |
Interest
on subordinated debentures |
|
206 |
|
|
|
196 |
|
|
|
5.1 |
% |
|
|
158 |
|
|
|
30.4 |
% |
Interest
on FHLB advances |
|
179 |
|
|
|
299 |
|
|
|
-40.1 |
% |
|
|
1 |
|
|
|
0.0 |
% |
Total
interest expense |
|
4,743 |
|
|
|
4,179 |
|
|
|
13.5 |
% |
|
|
4,040 |
|
|
|
17.4 |
% |
Net interest income
before provision for loan losses |
|
39,582 |
|
|
|
39,980 |
|
|
|
-1.0 |
% |
|
|
35,985 |
|
|
|
10.0 |
% |
Negative
provision for loan losses |
|
(1,450 |
) |
|
|
(1,515 |
) |
|
|
-4.3 |
% |
|
|
(3,704 |
) |
|
|
-60.9 |
% |
Net interest income
after provision for loan losses |
|
41,032 |
|
|
|
41,495 |
|
|
|
-1.1 |
% |
|
|
39,689 |
|
|
|
3.4 |
% |
Noninterest
income: |
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts |
|
2,883 |
|
|
|
2,898 |
|
|
|
-0.5 |
% |
|
|
3,378 |
|
|
|
-14.7 |
% |
Trade
finance and other service charges and fees |
|
992 |
|
|
|
1,064 |
|
|
|
-6.8 |
% |
|
|
1,115 |
|
|
|
-11.0 |
% |
Gain on
sale of Small Business Administration ("SBA") loans |
|
1,616 |
|
|
|
1,774 |
|
|
|
-8.9 |
% |
|
|
1,621 |
|
|
|
-0.3 |
% |
Disposition gains on Purchased Credit Impaired ("PCI") loans |
|
789 |
|
|
|
1,963 |
|
|
|
-59.8 |
% |
|
|
4,334 |
|
|
|
-81.8 |
% |
Net gain
on sales of securities |
|
46 |
|
|
|
- |
|
|
|
- |
|
|
|
2,048 |
|
|
|
-97.8 |
% |
Other
operating income |
|
2,348 |
|
|
|
1,674 |
|
|
|
40.3 |
% |
|
|
1,065 |
|
|
|
120.5 |
% |
Total
noninterest income |
|
8,674 |
|
|
|
9,373 |
|
|
|
-7.5 |
% |
|
|
13,561 |
|
|
|
-36.0 |
% |
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
15,950 |
|
|
|
16,061 |
|
|
|
-0.7 |
% |
|
|
16,097 |
|
|
|
-0.9 |
% |
Occupancy
and equipment |
|
3,917 |
|
|
|
3,938 |
|
|
|
-0.5 |
% |
|
|
4,896 |
|
|
|
-20.0 |
% |
Data
processing |
|
1,330 |
|
|
|
1,454 |
|
|
|
-8.5 |
% |
|
|
1,418 |
|
|
|
-6.2 |
% |
Professional fees |
|
1,090 |
|
|
|
1,509 |
|
|
|
-27.8 |
% |
|
|
1,940 |
|
|
|
-43.8 |
% |
Supplies
and communications |
|
821 |
|
|
|
709 |
|
|
|
15.8 |
% |
|
|
880 |
|
|
|
-6.7 |
% |
Advertising and promotion |
|
1,153 |
|
|
|
1,094 |
|
|
|
5.4 |
% |
|
|
1,290 |
|
|
|
-10.6 |
% |
OREO
expense |
|
73 |
|
|
|
183 |
|
|
|
-60.1 |
% |
|
|
225 |
|
|
|
-67.6 |
% |
Other
operating expenses |
|
4,003 |
|
|
|
2,915 |
|
|
|
37.3 |
% |
|
|
1,976 |
|
|
|
102.6 |
% |
Total
noninterest expense |
|
28,337 |
|
|
|
27,863 |
|
|
|
1.7 |
% |
|
|
28,722 |
|
|
|
-1.3 |
% |
Income before provision
for income taxes |
|
21,369 |
|
|
|
23,005 |
|
|
|
-7.1 |
% |
|
|
24,528 |
|
|
|
-12.9 |
% |
Income
tax expense |
|
8,248 |
|
|
|
8,857 |
|
|
|
-6.9 |
% |
|
|
10,569 |
|
|
|
-22.0 |
% |
Net income |
$ |
13,121 |
|
|
$ |
14,148 |
|
|
|
-7.3 |
% |
|
$ |
13,959 |
|
|
|
-6.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share: |
$ |
0.41 |
|
|
$ |
0.44 |
|
|
|
|
$ |
0.44 |
|
|
|
Diluted earnings per
share: |
$ |
0.41 |
|
|
$ |
0.44 |
|
|
|
|
$ |
0.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
31,912,470 |
|
|
|
31,882,489 |
|
|
|
|
|
31,799,573 |
|
|
|
Diluted |
|
32,088,233 |
|
|
|
32,029,910 |
|
|
|
|
|
31,909,808 |
|
|
|
Common shares
outstanding |
|
32,252,774 |
|
|
|
32,260,320 |
|
|
|
|
|
31,977,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial Corporation and
SubsidiariesConsolidated Statement of
Income (Unaudited)(In thousands, except share and per
share data)
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
Percentage |
|
|
2016 |
|
|
|
2015 |
|
|
Change |
Interest and
dividend income: |
|
|
|
|
|
Interest
and fees on loans |
$ |
120,862 |
|
|
$ |
110,415 |
|
|
|
9.5 |
% |
Interest
on securities |
|
8,604 |
|
|
|
9,737 |
|
|
|
-11.6 |
% |
Dividends
on FRB and FHLB stock |
|
1,540 |
|
|
|
2,205 |
|
|
|
-30.2 |
% |
Interest
on deposits in other banks |
|
152 |
|
|
|
156 |
|
|
|
-2.6 |
% |
Total
interest and dividend income |
|
131,158 |
|
|
|
122,513 |
|
|
|
7.1 |
% |
Interest
expense: |
|
|
|
|
|
Interest
on deposits |
|
11,769 |
|
|
|
11,463 |
|
|
|
2.7 |
% |
Interest
on FHLB advances |
|
673 |
|
|
|
61 |
|
|
|
1003.3 |
% |
Interest
on subordinated debentures |
|
584 |
|
|
|
454 |
|
|
|
28.6 |
% |
Total
interest expense |
|
13,026 |
|
|
|
11,978 |
|
|
|
8.7 |
% |
Net interest income
before provision for loan losses |
|
118,132 |
|
|
|
110,535 |
|
|
|
6.9 |
% |
Negative
provision for loan losses |
|
(4,490 |
) |
|
|
(7,779 |
) |
|
|
-42.3 |
% |
Net interest income
after provision for loan losses |
|
122,622 |
|
|
|
118,314 |
|
|
|
3.6 |
% |
Noninterest
income: |
|
|
|
|
|
Service
charges on deposit accounts |
|
8,782 |
|
|
|
9,758 |
|
|
|
-10.0 |
% |
Trade
finance and other service charges and fees |
|
3,099 |
|
|
|
3,491 |
|
|
|
-11.2 |
% |
Gain on
sale of Small Business Administration ("SBA") loans |
|
4,247 |
|
|
|
4,878 |
|
|
|
-12.9 |
% |
Net gain
on sales of securities |
|
46 |
|
|
|
6,144 |
|
|
|
-99.3 |
% |
Disposition gains on Purchased Credit Impaired ("PCI") loans |
|
3,411 |
|
|
|
8,027 |
|
|
|
-57.5 |
% |
Other
operating income |
|
5,423 |
|
|
|
3,246 |
|
|
|
67.1 |
% |
Total
noninterest income |
|
25,008 |
|
|
|
35,544 |
|
|
|
-29.6 |
% |
Noninterest
expense: |
|
|
|
|
|
Salaries
and employee benefits |
|
47,710 |
|
|
|
48,023 |
|
|
|
-0.7 |
% |
Occupancy
and equipment |
|
11,351 |
|
|
|
13,423 |
|
|
|
-15.4 |
% |
Data
processing |
|
4,219 |
|
|
|
4,885 |
|
|
|
-13.6 |
% |
Professional fees |
|
4,063 |
|
|
|
5,982 |
|
|
|
-32.1 |
% |
Supplies
and communications |
|
2,266 |
|
|
|
2,638 |
|
|
|
-14.1 |
% |
Advertising and promotion |
|
2,769 |
|
|
|
2,859 |
|
|
|
-3.1 |
% |
OREO
expense |
|
721 |
|
|
|
629 |
|
|
|
14.6 |
% |
Other
operating expenses |
|
9,170 |
|
|
|
6,953 |
|
|
|
31.9 |
% |
Merger
and integration costs |
|
- |
|
|
|
1,747 |
|
|
|
-100.0 |
% |
Total
noninterest expense |
|
82,269 |
|
|
|
87,139 |
|
|
|
-5.6 |
% |
Income before provision
for income taxes |
|
65,361 |
|
|
|
66,719 |
|
|
|
-2.0 |
% |
Income
tax expense |
|
23,288 |
|
|
|
27,722 |
|
|
|
-16.0 |
% |
Net income |
$ |
42,073 |
|
|
$ |
38,997 |
|
|
|
7.9 |
% |
|
|
|
|
|
|
|
|
Basic earnings per
share: |
$ |
1.31 |
|
|
$ |
1.22 |
|
|
|
Diluted earnings per
share: |
$ |
1.31 |
|
|
$ |
1.22 |
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
Basic |
|
31,880,466 |
|
|
|
31,774,047 |
|
|
|
Diluted |
|
32,031,295 |
|
|
|
31,855,024 |
|
|
|
Common shares
outstanding |
|
32,252,774 |
|
|
|
31,977,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial Corporation and
SubsidiariesSelected Financial Data
(Unaudited)(In thousands, except ratios)
|
As of or for the Three Months
Ended |
|
As of or for the Nine Months
Ended |
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
2016 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Average
balances: |
|
|
|
|
|
|
|
|
|
Loans
(1) |
$ |
3,477,280 |
|
|
$ |
3,328,416 |
|
|
$ |
2,895,336 |
|
|
$ |
3,333,369 |
|
|
$ |
2,851,895 |
|
Securities |
|
589,832 |
|
|
|
657,756 |
|
|
|
721,472 |
|
|
|
643,125 |
|
|
|
834,862 |
|
Interest-earning assets |
|
4,129,997 |
|
|
|
4,055,578 |
|
|
|
3,755,740 |
|
|
|
4,045,430 |
|
|
|
3,801,057 |
|
Assets |
|
4,397,555 |
|
|
|
4,325,500 |
|
|
|
4,021,642 |
|
|
|
4,315,012 |
|
|
|
4,074,537 |
|
Deposits |
|
3,669,419 |
|
|
|
3,479,365 |
|
|
|
3,484,648 |
|
|
|
3,544,389 |
|
|
|
3,498,393 |
|
Borrowings |
|
171,779 |
|
|
|
296,858 |
|
|
|
20,541 |
|
|
|
222,889 |
|
|
|
63,909 |
|
Interest-bearing liabilities |
|
2,651,505 |
|
|
|
2,605,737 |
|
|
|
2,433,703 |
|
|
|
2,600,851 |
|
|
|
2,513,660 |
|
Stockholders’ equity |
|
528,581 |
|
|
|
518,015 |
|
|
|
479,478 |
|
|
|
515,403 |
|
|
|
471,218 |
|
Tangible
equity (2) |
|
527,072 |
|
|
|
516,424 |
|
|
|
477,620 |
|
|
|
513,813 |
|
|
|
469,267 |
|
|
|
|
|
|
|
|
|
|
|
Performance
ratios: |
|
|
|
|
|
|
|
|
|
Pre-tax,
pre-provision earnings on average assets (3) |
|
1.80 |
% |
|
|
2.00 |
% |
|
|
2.05 |
% |
|
|
1.88 |
% |
|
|
1.93 |
% |
Return on
average assets (3) |
|
1.19 |
% |
|
|
1.32 |
% |
|
|
1.38 |
% |
|
|
1.30 |
% |
|
|
1.28 |
% |
Return on
average stockholders’ equity (3) |
|
9.88 |
% |
|
|
10.98 |
% |
|
|
11.55 |
% |
|
|
10.90 |
% |
|
|
11.06 |
% |
Return on
average tangible equity (3) |
|
9.90 |
% |
|
|
11.02 |
% |
|
|
11.60 |
% |
|
|
10.94 |
% |
|
|
11.11 |
% |
Efficiency ratio |
|
58.72 |
% |
|
|
56.46 |
% |
|
|
57.97 |
% |
|
|
57.47 |
% |
|
|
59.65 |
% |
Efficiency ratio excluding merger and integration costs |
|
58.72 |
% |
|
|
56.46 |
% |
|
|
57.97 |
% |
|
|
57.47 |
% |
|
|
58.46 |
% |
Net
interest margin (3) (6) |
|
3.86 |
% |
|
|
4.02 |
% |
|
|
3.81 |
% |
|
|
3.95 |
% |
|
|
3.89 |
% |
Net
interest margin excluding acquisition accounting (3) (6) |
|
3.75 |
% |
|
|
3.84 |
% |
|
|
3.49 |
% |
|
|
3.76 |
% |
|
|
3.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
loan losses: |
|
|
|
|
|
|
|
|
|
Balance
at beginning of period |
$ |
39,707 |
|
|
$ |
41,026 |
|
|
$ |
50,820 |
|
|
$ |
42,935 |
|
|
$ |
52,666 |
|
(Negative
provision) provision for loan losses |
|
(1,450 |
) |
|
|
(1,515 |
) |
|
|
(3,704 |
) |
|
|
(4,490 |
) |
|
|
(7,779 |
) |
Net
(charge-offs) recoveries |
|
715 |
|
|
|
196 |
|
|
|
(754 |
) |
|
|
527 |
|
|
|
1,475 |
|
Balance
at end of period |
$ |
38,972 |
|
|
$ |
39,707 |
|
|
$ |
46,362 |
|
|
$ |
38,972 |
|
|
$ |
46,362 |
|
|
|
|
|
|
|
|
|
|
|
Asset quality
ratios: |
|
|
|
|
|
|
|
|
|
Nonperforming Non-PCI loans to loans (4) |
|
0.31 |
% |
|
|
0.36 |
% |
|
|
0.79 |
% |
|
|
0.31 |
% |
|
|
0.79 |
% |
Nonperforming assets to assets (4) |
|
0.50 |
% |
|
|
0.54 |
% |
|
|
0.88 |
% |
|
|
0.50 |
% |
|
|
0.88 |
% |
Net loan
charge-offs (recoveries) to average loans (3) |
|
-0.08 |
% |
|
|
-0.02 |
% |
|
|
0.10 |
% |
|
|
-0.02 |
% |
|
|
-0.07 |
% |
Allowance
for loan losses to loans |
|
1.10 |
% |
|
|
1.15 |
% |
|
|
1.52 |
% |
|
|
1.10 |
% |
|
|
1.52 |
% |
Allowance
for loan losses to nonperforming Non-PCI loans (4) (5) |
|
305.43 |
% |
|
|
277.60 |
% |
|
|
180.52 |
% |
|
|
305.43 |
% |
|
|
180.52 |
% |
|
|
|
|
|
|
|
|
|
|
Allowance for
off-balance sheet items: |
|
|
|
|
|
|
|
|
|
Balance
at beginning of period |
$ |
1,475 |
|
|
$ |
1,220 |
|
|
$ |
962 |
|
|
$ |
986 |
|
|
$ |
1,366 |
|
Provision
(negative provision) for loan losses |
|
16 |
|
|
|
255 |
|
|
|
(406 |
) |
|
|
505 |
|
|
|
(810 |
) |
Balance
at end of period |
$ |
1,491 |
|
|
$ |
1,475 |
|
|
$ |
556 |
|
|
$ |
1,491 |
|
|
$ |
556 |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets (4): |
|
|
|
|
|
|
|
|
|
Nonaccrual Non-PCI loans |
$ |
10,948 |
|
|
$ |
12,341 |
|
|
$ |
23,944 |
|
|
|
|
|
Loans 90
days or more past due and still accruing |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Nonperforming Non-PCI loans |
|
10,948 |
|
|
|
12,341 |
|
|
|
23,944 |
|
|
|
|
|
OREO,
net |
|
10,971 |
|
|
|
11,846 |
|
|
|
13,249 |
|
|
|
|
|
Nonperforming assets |
$ |
21,919 |
|
|
$ |
24,187 |
|
|
$ |
37,193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquent
loans: |
|
|
|
|
|
|
|
|
|
Loans, 30
to 89 days past due and still accruing |
$ |
1,066 |
|
|
$ |
1,517 |
|
|
$ |
1,424 |
|
|
|
|
|
Delinquent loans to loans |
|
0.03 |
% |
|
|
0.04 |
% |
|
|
0.05 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired
loans |
|
|
|
|
|
|
|
|
|
PCI
loans, net of discounts |
$ |
15,540 |
|
|
$ |
15,020 |
|
|
|
25,145 |
|
|
|
|
|
Allowance
for loan losses on PCI loans |
$ |
5,533 |
|
|
$ |
5,448 |
|
|
|
3,138 |
|
|
|
|
|
Non-PCI
loans, net of discounts |
$ |
108,434 |
|
|
$ |
117,750 |
|
|
|
179,695 |
|
|
|
|
|
Unamortized acquisition discounts on Non-PCI loans |
$ |
7,087 |
|
|
$ |
7,735 |
|
|
|
14,414 |
|
|
|
|
|
(1) Includes loans held for
sale |
(2) Refer to "Non-GAAP
Financial Measures" for further details. |
(3) Annualized |
(4) Excludes PCI loans |
(5) Excludes allowance for
loan losses allocated to PCI loans |
(6) Amounts calculated on a
fully taxable equivalent basis using the current statutory federal
tax rate. |
|
Hanmi Financial Corporation and
SubsidiariesSelected Financial Data
(Unaudited)(In thousands, except ratios)
|
September 30, |
|
June 30, |
|
September 30, |
|
|
2016 |
|
|
|
2016 |
|
|
|
2015 |
|
Loan
portfolio: |
|
|
|
|
|
Commercial real estate loans |
$ |
2,880,012 |
|
|
$ |
2,835,077 |
|
|
$ |
2,541,449 |
|
Residential real estate loans |
|
330,675 |
|
|
|
296,496 |
|
|
|
198,105 |
|
Commercial and industrial loans |
|
319,656 |
|
|
|
293,073 |
|
|
|
280,784 |
|
Consumer
loans |
|
22,316 |
|
|
|
24,664 |
|
|
|
24,734 |
|
Loans
receivable |
|
3,552,659 |
|
|
|
3,449,310 |
|
|
|
3,045,072 |
|
Loans
held for sale, at the lower of cost or fair value |
|
6,425 |
|
|
|
12,833 |
|
|
|
4,871 |
|
Total
loans |
$ |
3,559,084 |
|
|
$ |
3,462,143 |
|
|
$ |
3,049,943 |
|
|
|
|
|
|
|
Loan
mix: |
|
|
|
|
|
Commercial real estate loans |
|
80.9 |
% |
|
|
81.8 |
% |
|
|
83.3 |
% |
Residential real estate loans |
|
9.3 |
% |
|
|
8.6 |
% |
|
|
6.5 |
% |
Commercial and industrial loans |
|
9.0 |
% |
|
|
8.5 |
% |
|
|
9.2 |
% |
Consumer
loans |
|
0.6 |
% |
|
|
0.7 |
% |
|
|
0.8 |
% |
Loans
held for sale, at the lower of cost or fair value |
|
0.2 |
% |
|
|
0.4 |
% |
|
|
0.2 |
% |
Total
loans |
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
Deposit
portfolio: |
|
|
|
|
|
Demand:
noninterest-bearing |
$ |
1,231,967 |
|
|
$ |
1,189,528 |
|
|
$ |
1,114,621 |
|
interest-bearing |
|
94,272 |
|
|
|
92,776 |
|
|
|
87,871 |
|
Money
market and savings |
|
1,242,502 |
|
|
|
1,023,421 |
|
|
|
871,869 |
|
Time
deposits of $250,000 or less |
|
819,471 |
|
|
|
891,197 |
|
|
|
1,068,864 |
|
Time
deposits of more than $250,000 |
|
382,995 |
|
|
|
392,367 |
|
|
|
375,469 |
|
Total
deposits |
$ |
3,771,207 |
|
|
$ |
3,589,289 |
|
|
$ |
3,518,694 |
|
|
|
|
|
|
|
Deposit
mix: |
|
|
|
|
|
Demand:
noninterest-bearing |
|
32.7 |
% |
|
|
33.1 |
% |
|
|
31.7 |
% |
interest-bearing |
|
2.5 |
% |
|
|
2.6 |
% |
|
|
2.5 |
% |
Money
market and savings |
|
32.9 |
% |
|
|
28.5 |
% |
|
|
24.8 |
% |
Time
deposits of $250,000 or less |
|
21.7 |
% |
|
|
24.8 |
% |
|
|
30.3 |
% |
Time
deposits of more than $250,000 |
|
10.2 |
% |
|
|
11.0 |
% |
|
|
10.7 |
% |
Total
deposits |
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
Capital
ratios (7): |
|
|
|
|
|
Hanmi Financial |
|
|
|
|
|
Total
risk-based capital |
|
14.97 |
% |
|
|
15.16 |
% |
|
|
14.80 |
% |
Tier 1
risk-based capital |
|
13.84 |
% |
|
|
14.00 |
% |
|
|
13.54 |
% |
Common
equity tier 1 capital |
|
13.69 |
% |
|
|
13.85 |
% |
|
|
13.54 |
% |
Tier 1
leverage capital ratio |
|
11.68 |
% |
|
|
11.69 |
% |
|
|
11.19 |
% |
Hanmi Bank |
|
|
|
|
|
Total
risk-based capital |
|
14.59 |
% |
|
|
14.58 |
% |
|
|
14.74 |
% |
Tier 1
risk-based capital |
|
13.46 |
% |
|
|
13.43 |
% |
|
|
13.48 |
% |
Common
equity tier 1 capital |
|
13.46 |
% |
|
|
13.43 |
% |
|
|
13.48 |
% |
Tier 1
leverage capital ratio |
|
11.36 |
% |
|
|
11.21 |
% |
|
|
11.14 |
% |
|
(7) Preliminary ratios for September 30, 2016 |
|
Hanmi Financial Corporation and
SubsidiariesAverage Balance, Average Yield Earned
and Average Rate Paid (Unaudited)(In thousands, except
ratios)
|
Three Months Ended |
|
September 30, 2016 |
|
June 30, 2016 |
|
September 30, 2015 |
|
|
Interest |
Average |
|
|
Interest |
Average |
|
|
Interest |
Average |
|
Average |
Income / |
Yield / |
|
Average |
Income / |
Yield / |
|
Average |
Income / |
Yield / |
|
Balance |
Expense |
Rate |
|
Balance |
Expense |
Rate |
|
Balance |
Expense |
Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Loans
(1) |
$ |
3,477,280 |
|
$ |
41,150 |
|
|
4.71 |
% |
|
$ |
3,328,416 |
|
$ |
40,645 |
|
|
4.91 |
% |
|
$ |
2,895,336 |
|
$ |
36,466 |
|
|
5.00 |
% |
Securities (2) |
|
589,832 |
|
|
3,210 |
|
|
2.18 |
% |
|
|
657,756 |
|
|
3,397 |
|
|
2.07 |
% |
|
|
721,472 |
|
|
2,950 |
|
|
1.64 |
% |
FRB and
FHLB stock |
|
19,207 |
|
|
419 |
|
|
8.73 |
% |
|
|
30,808 |
|
|
579 |
|
|
7.52 |
% |
|
|
29,916 |
|
|
607 |
|
|
8.12 |
% |
Interest-bearing deposits in other banks |
|
43,678 |
|
|
55 |
|
|
0.50 |
% |
|
|
38,598 |
|
|
49 |
|
|
0.51 |
% |
|
|
109,016 |
|
|
68 |
|
|
0.25 |
% |
Total
interest-earning assets |
|
4,129,997 |
|
|
44,834 |
|
|
4.32 |
% |
|
|
4,055,578 |
|
|
44,670 |
|
|
4.43 |
% |
|
|
3,755,740 |
|
|
40,091 |
|
|
4.23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks |
|
116,779 |
|
|
|
|
|
114,247 |
|
|
|
|
|
89,241 |
|
|
|
Allowance
for loan losses |
|
(40,214 |
) |
|
|
|
|
(41,483 |
) |
|
|
|
|
(50,416 |
) |
|
|
Other
assets |
|
190,993 |
|
|
|
|
|
197,158 |
|
|
|
|
|
227,077 |
|
|
|
Total
noninterest-earning assets |
|
267,558 |
|
|
|
|
|
269,922 |
|
|
|
|
|
265,902 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
4,397,555 |
|
|
|
|
$ |
4,325,500 |
|
|
|
|
$ |
4,021,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
Demand:
interest-bearing |
$ |
93,852 |
|
$ |
19 |
|
|
0.08 |
% |
|
$ |
96,397 |
|
$ |
19 |
|
|
0.08 |
% |
|
$ |
91,111 |
|
$ |
31 |
|
|
0.13 |
% |
Money
market and savings |
|
1,141,747 |
|
|
1,834 |
|
|
0.64 |
% |
|
|
944,355 |
|
|
1,212 |
|
|
0.52 |
% |
|
|
860,595 |
|
|
1,112 |
|
|
0.51 |
% |
Time
deposits |
|
1,244,127 |
|
|
2,505 |
|
|
0.80 |
% |
|
|
1,268,127 |
|
|
2,453 |
|
|
0.78 |
% |
|
|
1,461,456 |
|
|
2,738 |
|
|
0.74 |
% |
FHLB
advances |
|
152,935 |
|
|
179 |
|
|
0.47 |
% |
|
|
278,077 |
|
|
299 |
|
|
0.43 |
% |
|
|
1,902 |
|
|
1 |
|
|
0.21 |
% |
Subordinated debentures |
|
18,844 |
|
|
206 |
|
|
4.35 |
% |
|
|
18,781 |
|
|
196 |
|
|
4.20 |
% |
|
|
18,639 |
|
|
158 |
|
|
3.36 |
% |
Total
interest-bearing liabilities |
|
2,651,505 |
|
|
4,743 |
|
|
0.71 |
% |
|
|
2,605,737 |
|
|
4,179 |
|
|
0.64 |
% |
|
|
2,433,703 |
|
|
4,040 |
|
|
0.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits: noninterest-bearing |
|
1,189,693 |
|
|
|
|
|
1,170,486 |
|
|
|
|
|
1,071,486 |
|
|
|
Other
liabilities |
|
27,924 |
|
|
|
|
|
31,262 |
|
|
|
|
|
36,960 |
|
|
|
Total
noninterest-bearing liabilities |
|
1,217,617 |
|
|
|
|
|
1,201,748 |
|
|
|
|
|
1,108,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
3,869,122 |
|
|
|
|
|
3,807,485 |
|
|
|
|
|
3,542,149 |
|
|
|
Stockholders' equity |
|
528,581 |
|
|
|
|
|
518,015 |
|
|
|
|
|
479,478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
$ |
4,397,703 |
|
|
|
|
$ |
4,325,500 |
|
|
|
|
$ |
4,021,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
40,091 |
|
|
|
|
$ |
40,491 |
|
|
|
|
$ |
36,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
deposits |
|
|
|
0.47 |
% |
|
|
|
|
0.43 |
% |
|
|
|
|
0.44 |
% |
Net interest
spread |
|
|
|
3.61 |
% |
|
|
|
|
3.79 |
% |
|
|
|
|
3.57 |
% |
Net interest
margin |
|
|
|
3.86 |
% |
|
|
|
|
4.02 |
% |
|
|
|
|
3.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes loans held for sale |
|
|
|
|
|
(2) Amounts calculated on a fully taxable equivalent
basis using the current statutory federal tax rate. |
|
|
|
|
|
|
Hanmi Financial Corporation and
SubsidiariesAverage Balance, Average Yield Earned
and Average Rate Paid (Unaudited)(In thousands, except
ratios)
|
Nine Months Ended |
|
September 30, 2016 |
|
September 30, 2015 |
|
|
Interest |
Average |
|
|
Interest |
Average |
|
Average |
Income / |
Yield / |
|
Average |
Income / |
Yield / |
|
Balance |
Expense |
Rate |
|
Balance |
Expense |
Rate |
Assets |
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
Loans
(1) |
$ |
3,333,369 |
|
$ |
120,862 |
|
|
4.84 |
% |
|
$ |
2,851,895 |
|
$ |
110,415 |
|
|
5.18 |
% |
Securities (2) |
|
643,125 |
|
|
10,136 |
|
|
1.58 |
% |
|
|
834,862 |
|
|
9,824 |
|
|
1.18 |
% |
FRB and
FHLB stock |
|
26,809 |
|
|
1,540 |
|
|
5.74 |
% |
|
|
29,903 |
|
|
2,205 |
|
|
7.37 |
% |
Interest-bearing deposits in other banks |
|
42,127 |
|
|
152 |
|
|
0.48 |
% |
|
|
84,397 |
|
|
156 |
|
|
0.25 |
% |
Total
interest-earning assets |
|
4,045,430 |
|
|
132,690 |
|
|
4.38 |
% |
|
|
3,801,057 |
|
|
122,600 |
|
|
4.31 |
% |
|
|
|
|
|
|
|
|
Noninterest-earning assets: |
|
|
|
|
|
|
|
Cash and
due from banks |
|
115,235 |
|
|
|
|
|
88,313 |
|
|
|
Allowance
for loan losses |
|
(41,401 |
) |
|
|
|
|
(52,287 |
) |
|
|
Other
assets |
|
195,748 |
|
|
|
|
|
237,454 |
|
|
|
Total
noninterest-earning assets |
|
269,582 |
|
|
|
|
|
273,480 |
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
4,315,012 |
|
|
|
|
$ |
4,074,537 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
Demand:
interest-bearing |
$ |
95,264 |
|
$ |
56 |
|
|
0.08 |
% |
|
$ |
89,286 |
|
$ |
89 |
|
|
0.13 |
% |
Money
market and savings |
|
996,578 |
|
|
4,130 |
|
|
0.55 |
% |
|
|
834,418 |
|
|
3,087 |
|
|
0.49 |
% |
Time
deposits |
|
1,286,120 |
|
|
7,583 |
|
|
0.79 |
% |
|
|
1,526,047 |
|
|
8,287 |
|
|
0.73 |
% |
FHLB
advances |
|
204,106 |
|
|
673 |
|
|
0.44 |
% |
|
|
45,311 |
|
|
61 |
|
|
0.18 |
% |
Subordinated debentures |
|
18,783 |
|
|
584 |
|
|
4.15 |
% |
|
|
18,598 |
|
|
454 |
|
|
3.26 |
% |
Total
interest-bearing liabilities |
|
2,600,851 |
|
|
13,026 |
|
|
0.67 |
% |
|
|
2,513,660 |
|
|
11,978 |
|
|
0.64 |
% |
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
Demand
deposits: noninterest-bearing |
|
1,166,427 |
|
|
|
|
|
1,048,642 |
|
|
|
Other
liabilities |
|
32,381 |
|
|
|
|
|
40,818 |
|
|
|
Total
noninterest-bearing liabilities |
|
1,198,808 |
|
|
|
|
|
1,089,460 |
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
3,799,659 |
|
|
|
|
|
3,603,120 |
|
|
|
Stockholders' equity |
|
515,403 |
|
|
|
|
|
471,218 |
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
$ |
4,315,062 |
|
|
|
|
$ |
4,074,338 |
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
119,664 |
|
|
|
|
$ |
110,622 |
|
|
|
|
|
|
|
|
|
|
Cost of
deposits |
|
|
|
0.44 |
% |
|
|
|
|
0.44 |
% |
Net interest
spread |
|
|
|
3.71 |
% |
|
|
|
|
3.67 |
% |
Net interest
margin |
|
|
|
3.95 |
% |
|
|
|
|
3.89 |
% |
|
|
|
|
|
|
|
|
(1) Includes loans held for sale |
(2) Amounts calculated on a fully taxable equivalent
basis using the current statutory federal tax rate. |
|
|
Non-GAAP Financial Measures
Tangible Common Equity to Tangible Assets Ratio
Tangible common equity to tangible assets ratio is supplemental
financial information determined by a method other than in
accordance with U.S. generally accepted accounting principles
(“GAAP”). This non-GAAP measure is used by management in the
analysis of Hanmi’s capital strength. Tangible equity is calculated
by subtracting goodwill and other intangible assets from
stockholders’ equity. Banking and financial institution regulators
also exclude goodwill and other intangible assets from
stockholders’ equity when assessing the capital adequacy of a
financial institution. Management believes the presentation of this
financial measure excluding the impact of these items provides
useful supplemental information that is essential to a proper
understanding of the capital strength of Hanmi. This disclosure
should not be viewed as a substitution for results determined in
accordance with GAAP, nor is it necessarily comparable to non-GAAP
performance measures that may be presented by other companies.
The following table reconciles this non-GAAP performance measure
to the GAAP performance measure for the periods indicated:
Tangible Common Equity to Tangible Assets Ratio
(Unaudited)(In thousands, except share, per share data and
ratios)
|
September 30, |
|
June 30, |
|
September 30, |
Hanmi Financial
Corporation |
|
2016 |
|
|
|
2016 |
|
|
|
2015 |
|
Assets |
$ |
4,402,180 |
|
|
$ |
4,441,333 |
|
|
$ |
4,214,241 |
|
Less
other intangible assets |
|
(1,456 |
) |
|
|
(1,537 |
) |
|
|
(1,795 |
) |
Tangible assets |
$ |
4,400,724 |
|
|
$ |
4,439,796 |
|
|
$ |
4,212,446 |
|
|
|
|
|
|
|
Stockholders'
equity |
$ |
531,198 |
|
|
$ |
525,185 |
|
|
$ |
485,449 |
|
Less
other intangible assets |
|
(1,456 |
) |
|
|
(1,537 |
) |
|
|
(1,795 |
) |
Tangible stockholders'
equity |
$ |
529,742 |
|
|
$ |
523,648 |
|
|
$ |
483,654 |
|
|
|
|
|
|
|
Stockholders' equity to
assets |
|
12.07 |
% |
|
|
11.82 |
% |
|
|
11.52 |
% |
Tangible common equity
to tangible assets |
|
12.04 |
% |
|
|
11.79 |
% |
|
|
11.48 |
% |
|
|
|
|
|
|
Common shares
outstanding |
|
32,252,774 |
|
|
|
32,260,320 |
|
|
|
31,977,207 |
|
Tangible common equity
per common share |
$ |
16.42 |
|
|
$ |
16.23 |
|
|
$ |
15.12 |
|
Investor Contacts:
Romolo (Ron) Santarosa
Senior Executive Vice President & Chief Financial Officer
213-427-5636
Lasse Glassen
Investor Relations
Addo Investor Relations
310-829-5400
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