2017 Second Quarter Highlights:
Hanmi Financial Corporation (NASDAQ:HAFC) (or “Hanmi”), the parent
company of Hanmi Bank (the “Bank”) today reported net income for
the 2017 second quarter of $14.5 million or $0.45 per diluted
share, compared with $13.8 million, or $0.43 per diluted share for
the 2017 first quarter and $14.1 million, or $0.44 per diluted
share for the 2016 second quarter.
For the first six months of 2017, net income
decreased 2.5% to $28.2 million, or $0.87 per diluted share,
compared with $29.0 million, or $0.90 per diluted share, for the
first six months of 2016.
Mr. C. G. Kum, President and Chief Executive
Officer, said, “Hanmi’s second quarter performance continues to
reflect our ability to generate relatively high loan growth while
preserving conservative underwriting discipline. During the
second quarter, we were able to generate net loan growth of 3.3%
with weighted average loan-to-value of 59% and debt-coverage-ratio
of 2.0 times for new commercial real estate loans. Our asset
quality metrics remain favorable with non-performing assets at 42
basis points of total assets and negligible net charge-off
levels. I am pleased to note that Hanmi’s net profits for the
second quarter resulted in, once again, favorable return on average
assets of 1.19% and return on average equity of 10.65%.”
Quarterly
Highlights |
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(in thousands, except per share data) |
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For the Three Months
Ended |
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Amount Change |
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Jun 30, |
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Mar 31, |
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Dec 31, |
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Sep 30, |
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Jun 30, |
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Q2-17 |
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Q2-17 |
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2017 |
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2017 |
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2016 |
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2016 |
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2016 |
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vs. Q1-17 |
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vs. Q2-16 |
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Net income |
$ |
14,457 |
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$ |
13,783 |
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$ |
14,416 |
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$ |
13,121 |
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$ |
14,148 |
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$ |
674 |
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$ |
309 |
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Net income per diluted
common share |
$ |
0.45 |
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$ |
0.43 |
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$ |
0.45 |
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$ |
0.41 |
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$ |
0.44 |
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$ |
0.02 |
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$ |
0.01 |
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Assets |
$ |
4,973,346 |
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$ |
4,811,821 |
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$ |
4,701,346 |
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$ |
4,402,180 |
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$ |
4,441,333 |
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$ |
161,525 |
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$ |
532,013 |
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Loans
and leases receivable |
$ |
4,073,062 |
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$ |
3,943,951 |
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$ |
3,844,769 |
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$ |
3,552,659 |
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$ |
3,449,310 |
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$ |
129,111 |
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$ |
623,752 |
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Deposits |
$ |
4,259,173 |
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$ |
4,083,165 |
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$ |
3,809,737 |
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$ |
3,771,207 |
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$ |
3,589,289 |
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$ |
176,008 |
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$ |
669,884 |
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Return on average
assets |
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1.19 |
% |
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|
1.18 |
% |
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|
1.26 |
% |
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1.19 |
% |
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|
1.32 |
% |
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|
0.01 |
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|
-0.13 |
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Return on average
stockholders' equity |
|
10.65 |
% |
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10.46 |
% |
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|
10.84 |
% |
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9.88 |
% |
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10.98 |
% |
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0.19 |
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-0.33 |
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Net interest margin
(1) |
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3.81 |
% |
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3.89 |
% |
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3.96 |
% |
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3.86 |
% |
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4.02 |
% |
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|
-0.08 |
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|
-0.21 |
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Net interest margin
excluding acquisition accounting (1) |
|
3.76 |
% |
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|
3.84 |
% |
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|
3.86 |
% |
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|
3.75 |
% |
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|
3.84 |
% |
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|
-0.08 |
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|
-0.08 |
|
Efficiency ratio
(3) |
|
54.74 |
% |
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|
54.95 |
% |
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|
51.77 |
% |
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|
58.72 |
% |
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|
56.46 |
% |
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|
-0.22 |
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|
-1.72 |
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Efficiency ratio
excluding merger and integration costs |
|
54.75 |
% |
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55.01 |
% |
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|
51.15 |
% |
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|
58.72 |
% |
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|
56.46 |
% |
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|
-0.26 |
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|
-1.70 |
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Tangible
common equity to tangible assets (2) |
|
10.83 |
% |
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10.98 |
% |
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|
11.05 |
% |
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|
12.04 |
% |
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11.79 |
% |
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|
-0.14 |
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|
-0.96 |
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Tangible common equity
per common share (2) |
$ |
16.59 |
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$ |
16.26 |
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$ |
16.03 |
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$ |
16.42 |
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$ |
16.23 |
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$ |
0.33 |
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$ |
0.36 |
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(1) Amounts calculated on a fully taxable equivalent
basis using the current statutory federal tax rate. |
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(2) Refer to "Non-GAAP Financial Measures" for further
details. |
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(3) Noninterest expense divided by net interest income
plus noninterest income |
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Results of Operations Second quarter net
interest income increased 1.9% to $43.2 million from $42.4 million
in the first quarter primarily from the solid expansion of loans
and leases receivable, partially offset by an increase in deposit
and subordinated debt interest expense. Average time deposits
increased 12.5% and the average subordinated debt balance increased
277.5%.
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As of or For the Three
Months Ended (in thousands) |
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Percentage Change |
|
Jun 30, |
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Mar 31, |
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Dec 31, |
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Sep 30, |
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Jun 30, |
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Q2-17 |
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Q2-17 |
Net Interest
Income |
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2017 |
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2017 |
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2016 |
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2016 |
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2016 |
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vs. Q1-17 |
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vs. Q2-16 |
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Interest
and fees on loans and leases(1) |
$ |
47,971 |
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$ |
45,378 |
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$ |
43,780 |
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$ |
41,150 |
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$ |
40,645 |
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5.7 |
% |
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18.0 |
% |
Interest
on securities |
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2,949 |
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2,520 |
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2,550 |
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2,701 |
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2,886 |
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17.0 |
% |
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2.2 |
% |
Dividends on FRB and FHLB stock |
|
283 |
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|
374 |
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927 |
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|
419 |
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|
579 |
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-24.3 |
% |
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-51.1 |
% |
Interest
on deposits in other banks |
|
123 |
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|
77 |
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|
55 |
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|
55 |
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|
49 |
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59.7 |
% |
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|
151.0 |
% |
Total
interest and dividend income |
$ |
51,326 |
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$ |
48,349 |
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$ |
47,312 |
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$ |
44,325 |
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$ |
44,159 |
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6.2 |
% |
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16.2 |
% |
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Interest
on deposits |
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6,463 |
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5,154 |
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4,799 |
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4,358 |
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|
3,684 |
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25.4 |
% |
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75.4 |
% |
Interest
on borrowings |
|
49 |
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|
468 |
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|
207 |
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|
179 |
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|
299 |
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-89.5 |
% |
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|
-83.6 |
% |
Interest
on subordinated debentures |
|
1,636 |
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|
373 |
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|
241 |
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|
206 |
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|
196 |
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338.6 |
% |
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|
734.7 |
% |
Total
interest expense |
|
8,148 |
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|
5,995 |
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|
5,247 |
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|
4,743 |
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|
4,179 |
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35.9 |
% |
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|
95.0 |
% |
Net
interest income |
$ |
43,178 |
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$ |
42,354 |
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$ |
42,065 |
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$ |
39,582 |
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$ |
39,980 |
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|
1.9 |
% |
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|
8.0 |
% |
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(1) Includes loans held for sale. |
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Net interest margin (on a taxable equivalent basis) for the
second quarter of 2017 was 3.81% compared with 3.89% for the first
quarter of 2017. The 8 basis point decrease in net interest margin
for the recent quarter compared with the preceding quarter was
primarily due to the full quarter impact of the first quarter’s
subordinated debt issuance - approximately 11 basis points.
The yield on average interest-earning assets increased 8 basis
points to 4.52% in the first quarter while the rate paid on average
interest-bearing deposits increased 9 basis points to 0.88%.
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For the Three Months
Ended (in thousands) |
|
Percentage Change |
|
Jun 30, |
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Mar 31, |
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Dec 31, |
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Sep 30, |
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Jun 30, |
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Q2-17 |
|
Q2-17 |
Average Earning
Assets and Interest-bearing
Liabilities |
|
2017 |
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2017 |
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2016 |
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2016 |
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2016 |
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vs. Q1-17 |
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vs. Q2-16 |
Loans
(1) |
$ |
3,951,934 |
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$ |
3,881,686 |
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$ |
3,690,955 |
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$ |
3,477,428 |
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$ |
3,328,416 |
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|
1.8 |
% |
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|
18.7 |
% |
Securities |
|
585,384 |
|
|
|
526,549 |
|
|
|
530,241 |
|
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|
589,832 |
|
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|
657,756 |
|
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|
11.2 |
% |
|
|
-11.0 |
% |
FRB and
FHLB stock |
|
16,385 |
|
|
|
16,385 |
|
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|
16,385 |
|
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|
19,207 |
|
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|
30,808 |
|
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|
0.0 |
% |
|
|
-46.8 |
% |
Interest-bearing deposits in other banks |
|
47,402 |
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|
38,600 |
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|
40,548 |
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|
43,678 |
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|
38,598 |
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|
22.8 |
% |
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|
22.8 |
% |
Average
interest-earning assets |
$ |
4,601,105 |
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$ |
4,463,220 |
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|
$ |
4,278,129 |
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|
$ |
4,130,145 |
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$ |
4,055,578 |
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|
3.1 |
% |
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|
13.5 |
% |
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Demand:
interest-bearing |
$ |
93,873 |
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$ |
97,602 |
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$ |
95,399 |
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$ |
93,852 |
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$ |
96,397 |
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-3.8 |
% |
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|
-2.6 |
% |
Money
market and savings |
|
1,532,733 |
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|
1,406,903 |
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|
1,305,565 |
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|
1,141,747 |
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|
944,355 |
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8.9 |
% |
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62.3 |
% |
Time
deposits |
|
1,320,005 |
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1,173,184 |
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1,165,828 |
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1,244,127 |
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1,268,127 |
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12.5 |
% |
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|
4.1 |
% |
Average
interest-bearing deposits |
|
2,946,611 |
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|
2,677,689 |
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|
2,566,792 |
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|
2,479,726 |
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2,308,879 |
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10.0 |
% |
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|
27.6 |
% |
Borrowings |
|
20,000 |
|
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|
270,500 |
|
|
|
174,674 |
|
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|
152,935 |
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|
278,077 |
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|
-92.6 |
% |
|
|
-92.8 |
% |
Subordinated debentures |
|
116,850 |
|
|
|
30,950 |
|
|
|
18,919 |
|
|
|
18,844 |
|
|
|
18,781 |
|
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|
277.5 |
% |
|
|
522.2 |
% |
Average
interest-bearing liabilities |
$ |
3,083,461 |
|
|
$ |
2,979,139 |
|
|
$ |
2,760,385 |
|
|
$ |
2,651,505 |
|
|
$ |
2,605,737 |
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3.5 |
% |
|
|
18.3 |
% |
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(1) Includes loans held for sale. |
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For the Three Months
Ended |
|
Percentage Change |
|
Jun 30, |
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Mar 31, |
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Dec 31, |
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Sep 30, |
|
Jun 30, |
|
Q2-17 |
|
Q2-17 |
Average Yields
and Rates |
|
2017 |
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2017 |
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2016 |
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2016 |
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|
2016 |
|
|
vs. Q1-17 |
|
vs. Q2-16 |
Loans
(1) |
|
4.87 |
% |
|
|
4.74 |
% |
|
|
4.72 |
% |
|
|
4.71 |
% |
|
|
4.91 |
% |
|
|
2.7 |
% |
|
|
-0.8 |
% |
Securities (2) |
|
2.35 |
% |
|
|
2.30 |
% |
|
|
2.31 |
% |
|
|
2.18 |
% |
|
|
2.07 |
% |
|
|
2.2 |
% |
|
|
13.8 |
% |
FRB and
FHLB stock |
|
6.93 |
% |
|
|
9.26 |
% |
|
|
22.63 |
% |
|
|
8.73 |
% |
|
|
7.52 |
% |
|
|
-25.2 |
% |
|
|
-7.8 |
% |
Interest-bearing deposits in other banks |
|
1.04 |
% |
|
|
0.81 |
% |
|
|
0.54 |
% |
|
|
0.50 |
% |
|
|
0.51 |
% |
|
|
28.4 |
% |
|
|
103.7 |
% |
Interest-earning assets |
|
4.52 |
% |
|
|
4.44 |
% |
|
|
4.45 |
% |
|
|
4.32 |
% |
|
|
4.43 |
% |
|
|
1.8 |
% |
|
|
2.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
0.88 |
% |
|
|
0.78 |
% |
|
|
0.74 |
% |
|
|
0.70 |
% |
|
|
0.64 |
% |
|
|
12.8 |
% |
|
|
36.6 |
% |
Borrowings |
|
0.98 |
% |
|
|
0.70 |
% |
|
|
0.47 |
% |
|
|
0.47 |
% |
|
|
0.43 |
% |
|
|
40.0 |
% |
|
|
126.6 |
% |
Subordinated debentures |
|
5.59 |
% |
|
|
4.82 |
% |
|
|
5.07 |
% |
|
|
4.35 |
% |
|
|
4.20 |
% |
|
|
16.0 |
% |
|
|
33.1 |
% |
Interest-bearing liabilities |
|
1.06 |
% |
|
|
0.82 |
% |
|
|
0.76 |
% |
|
|
0.71 |
% |
|
|
0.65 |
% |
|
|
29.3 |
% |
|
|
64.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest margin (taxable equivalent basis) |
|
3.81 |
% |
|
|
3.89 |
% |
|
|
3.96 |
% |
|
|
3.86 |
% |
|
|
4.02 |
% |
|
|
-2.1 |
% |
|
|
-5.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
deposits |
|
0.62 |
% |
|
|
0.54 |
% |
|
|
0.50 |
% |
|
|
0.47 |
% |
|
|
0.43 |
% |
|
|
14.8 |
% |
|
|
44.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes loans held for sale. |
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|
|
|
|
|
|
|
|
|
|
|
(2) Amounts calculated on a fully taxable equivalent
basis using the current statutory federal tax rate. |
|
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|
|
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|
|
For the second quarter of 2017, Hanmi recorded a provision for
loan losses of $0.4 million, which included a negative loan loss
provision of $0.2 million relating to Purchased Credit Impaired
(“PCI”) loans from the 2014 acquisition. For the prior quarter, the
negative loan loss provision was $0.1 million, all of which related
to PCI loans.
Second quarter noninterest income increased $2.5
million or 34.4% to $9.7 million from $7.2 million for the first
quarter of 2017 primarily due to a $1.2 million increase in gains
on sale of SBA loans, a $0.7 million increase in gains on sales of
securities and a $0.4 million increase in disposition gain on PCI
loans. Gains on sales of SBA loans were $2.7 million for the second
quarter 2017, up from $1.5 million from the first quarter of 2017
as the volume of SBA loans sold increased to $32.4 million from
$19.6 million for the preceding quarter. Gains on the sales of
securities were $0.9 million for the second quarter of 2017, up
from $0.3 million in the first. Disposition gains on PCI loans were
$0.5 million for the second quarter of 2017, compared with $0.2
million for the prior quarter. PCI loans from the 2014 acquisition
were $8.8 million at the end of the second quarter of 2017, down
2.0% from the prior quarter.
|
For the Three Months
Ended (in thousands) |
|
Percentage Change |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Q2-17 |
|
Q2-17 |
Noninterest
Income |
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
vs. Q1-17 |
|
vs. Q2-16 |
Service
charges on deposit accounts |
$ |
2,461 |
|
|
$ |
2,528 |
|
|
$ |
2,599 |
|
|
$ |
2,883 |
|
|
$ |
2,898 |
|
|
|
-2.7 |
% |
|
|
-15.1 |
% |
Trade
finance and other service charges and fees |
|
1,269 |
|
|
|
1,047 |
|
|
|
1,132 |
|
|
|
992 |
|
|
|
1,064 |
|
|
|
21.2 |
% |
|
|
19.3 |
% |
Other
operating income |
|
1,826 |
|
|
|
1,726 |
|
|
|
991 |
|
|
|
2,348 |
|
|
|
1,674 |
|
|
|
5.8 |
% |
|
|
9.1 |
% |
Service
charges, fees & other |
|
5,556 |
|
|
|
5,301 |
|
|
|
4,722 |
|
|
|
6,223 |
|
|
|
5,636 |
|
|
|
4.8 |
% |
|
|
-1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on
sale of SBA loans |
|
2,668 |
|
|
|
1,464 |
|
|
|
1,787 |
|
|
|
1,616 |
|
|
|
1,774 |
|
|
|
82.2 |
% |
|
|
50.4 |
% |
Disposition gain on PCI loans |
|
540 |
|
|
|
183 |
|
|
|
1,559 |
|
|
|
789 |
|
|
|
1,963 |
|
|
|
195.1 |
% |
|
|
-72.5 |
% |
Net gain
on sales of securities |
|
938 |
|
|
|
269 |
|
|
|
- |
|
|
|
46 |
|
|
|
- |
|
|
|
248.7 |
% |
|
|
0.0 |
% |
Total
noninterest income |
$ |
9,702 |
|
|
$ |
7,217 |
|
|
$ |
8,068 |
|
|
$ |
8,674 |
|
|
$ |
9,373 |
|
|
|
34.4 |
% |
|
|
3.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense for the second quarter increased $1.7
million, or 6.3%, to $28.9 million from $27.2 million for the first
quarter primarily due to a $0.8 million increase in other operating
expenses and a $0.6 million increase in OREO expense. Excluding
OREO expense, which increased $0.6 million, and merger and
integration costs, noninterest expense increased $1.1 million or
3.9% quarter over quarter. Although salaries and benefits
declined $0.5 million or 2.8% from the seasonal decline of payroll
taxes and employee benefits, advertising and promotion was
seasonally higher increasing $0.2 million while professional fees
increased $0.4 million on higher audit and tax fees. Other
expense increased $0.8 million due to the first quarter benefit
from a $0.5 million reduction in our SBA servicing valuation
allowance and a second quarter loss of $0.1 million on the sale of
branch properties. As a result of the increase in revenue
from the growth in earning assets and the gains on sale of SBA
loans and securities, the efficiency ratio improved to 54.7% in the
second quarter from 55.0% in the prior quarter.
|
For the Three Months
Ended (in thousands) |
|
Percentage Change |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Q2-17 |
|
Q2-17 |
|
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
vs. Q1-17 |
|
vs. Q2-16 |
Noninterest
Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and benefits |
$ |
16,623 |
|
|
$ |
17,104 |
|
|
$ |
16,246 |
|
|
$ |
15,950 |
|
|
$ |
16,061 |
|
|
|
-2.8 |
% |
|
|
3.5 |
% |
Occupancy and equipment |
|
3,878 |
|
|
|
3,982 |
|
|
|
3,641 |
|
|
|
3,917 |
|
|
|
3,938 |
|
|
|
-2.6 |
% |
|
|
-1.5 |
% |
Data
processing |
|
1,738 |
|
|
|
1,631 |
|
|
|
1,455 |
|
|
|
1,330 |
|
|
|
1,454 |
|
|
|
6.6 |
% |
|
|
19.5 |
% |
Professional fees |
|
1,554 |
|
|
|
1,148 |
|
|
|
1,311 |
|
|
|
1,090 |
|
|
|
1,509 |
|
|
|
35.4 |
% |
|
|
3.0 |
% |
Supplies
and communication |
|
745 |
|
|
|
635 |
|
|
|
683 |
|
|
|
821 |
|
|
|
709 |
|
|
|
17.3 |
% |
|
|
5.1 |
% |
Advertising and promotion |
|
1,015 |
|
|
|
802 |
|
|
|
1,140 |
|
|
|
1,153 |
|
|
|
1,094 |
|
|
|
26.6 |
% |
|
|
-7.2 |
% |
Other
operating expenses |
|
2,881 |
|
|
|
2,070 |
|
|
|
1,825 |
|
|
|
4,003 |
|
|
|
2,915 |
|
|
|
39.2 |
% |
|
|
-1.2 |
% |
subtotal |
|
28,434 |
|
|
|
27,372 |
|
|
|
26,301 |
|
|
|
28,264 |
|
|
|
27,680 |
|
|
|
3.9 |
% |
|
|
2.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OREO
expense (income) |
|
519 |
|
|
|
(101 |
) |
|
|
(658 |
) |
|
|
73 |
|
|
|
183 |
|
|
|
-613.9 |
% |
|
|
183.6 |
% |
Merger
and integration costs |
|
(9 |
) |
|
|
(31 |
) |
|
|
312 |
|
|
|
- |
|
|
|
- |
|
|
|
-71.0 |
% |
|
|
0.0 |
% |
Total
noninterest expense |
$ |
28,944 |
|
|
$ |
27,240 |
|
|
$ |
25,955 |
|
|
$ |
28,337 |
|
|
$ |
27,863 |
|
|
|
6.3 |
% |
|
|
3.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi recorded a provision for income taxes of $9.1 million for
the second quarter of 2017, representing an effective tax rate of
38.5%, compared with $8.6 million, representing an effective tax
rate of 38.5%, for the preceding quarter.
Financial PositionTotal assets
were $4.97 billion at June 30, 2017, a 3.4% increase from $4.81
billion at March 31, 2017. The increase in total assets was
primarily due to an increase in loans and leases receivable.
Loans and leases receivable, before the allowance
for loan and lease losses, were $4.07 billion at June 30, 2017, up
3.3% from $3.94 billion at March 31, 2017. The increase in loans
and leases from the prior quarter reflects Hanmi’s strong loan
production, up 37.6% to $279.0 million from $202.7 million for the
first quarter of 2017. Loans held for sale, representing the
guaranteed portion of SBA loans, were $10.9 million at June 30,
2017 compared with $8.8 million at the end of the 2017 first
quarter.
Loans and leases receivable, before the allowance
for loan and lease losses, increased 18.1% from $3.45 billion for
the second quarter last year, primarily due to strong loan
production over the last twelve months, as well as last year’s
acquisition and commencement of the Commercial Equipment Leasing
division.
|
As of (in
thousands) |
|
Percentage Change |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Q2-17 |
|
Q2-17 |
|
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
vs. Q1-17 |
|
vs. Q2-16 |
Loan and Lease
Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans |
$ |
3,068,069 |
|
|
$ |
2,991,123 |
|
|
$ |
2,939,608 |
|
|
$ |
2,880,012 |
|
|
$ |
2,835,076 |
|
|
|
2.6 |
% |
|
|
8.2 |
% |
Residential real estate loans |
|
384,044 |
|
|
|
359,152 |
|
|
|
338,767 |
|
|
|
330,675 |
|
|
|
296,496 |
|
|
|
6.9 |
% |
|
|
29.5 |
% |
Commercial and industrial loans |
|
346,150 |
|
|
|
316,284 |
|
|
|
300,220 |
|
|
|
319,656 |
|
|
|
293,073 |
|
|
|
9.4 |
% |
|
|
18.1 |
% |
Lease
receivable |
|
257,525 |
|
|
|
259,591 |
|
|
|
243,294 |
|
|
|
- |
|
|
|
- |
|
|
|
-0.8 |
% |
|
|
0.0 |
% |
Consumer
loans |
|
17,274 |
|
|
|
17,801 |
|
|
|
22,880 |
|
|
|
22,316 |
|
|
|
24,665 |
|
|
|
-3.0 |
% |
|
|
-30.0 |
% |
Loans and
leases receivable |
|
4,073,062 |
|
|
|
3,943,951 |
|
|
|
3,844,769 |
|
|
|
3,552,659 |
|
|
|
3,449,310 |
|
|
|
3.3 |
% |
|
|
18.1 |
% |
Loans
held for sale |
|
10,949 |
|
|
|
8,849 |
|
|
|
9,316 |
|
|
|
6,425 |
|
|
|
12,833 |
|
|
|
23.7 |
% |
|
|
-14.7 |
% |
Total
loans |
$ |
4,084,011 |
|
|
$ |
3,952,800 |
|
|
$ |
3,854,085 |
|
|
$ |
3,559,084 |
|
|
$ |
3,462,143 |
|
|
|
3.3 |
% |
|
|
18.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired
Loans(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
PCI
loans, net of discounts |
$ |
8,784 |
|
|
$ |
8,960 |
|
|
$ |
9,863 |
|
|
$ |
15,540 |
|
|
$ |
15,020 |
|
|
|
-2.0 |
% |
|
|
-41.5 |
% |
Non-PCI
loans, net of discounts |
|
96,600 |
|
|
|
101,062 |
|
|
|
104,733 |
|
|
|
108,434 |
|
|
|
117,750 |
|
|
|
-4.4 |
% |
|
|
-18.0 |
% |
Total
acquired loans |
$ |
105,384 |
|
|
$ |
110,022 |
|
|
$ |
114,596 |
|
|
$ |
123,974 |
|
|
$ |
132,770 |
|
|
|
-4.2 |
% |
|
|
-20.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes UCB acquired only. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New loan production for the 2017 second quarter was $279.0
million while payoffs and amortization was $131.4 million compared
with $202.7 million and $117.8 million for the first quarter of
2017. Second quarter 2017 new loan production was comprised of
$137.7 million of commercial real estate loans, $58.9 million of
commercial and industrial loans, $48.0 million of SBA loans, $33.1
million of commercial leases and $1.2 million of consumer loans.
Loan purchases for the 2017 second quarter were $39.4 million,
compared with $33.6 million in the first quarter of 2017. For
the second quarter of 2017, commercial real estate loans as a
percentage of total loans and leases decreased to 75.3% compared
with 82.2% for the same period last year.
Deposits increased to $4.26 billion at the end of
the 2017 second quarter from $4.08 billion at the end of the
preceding quarter. Time deposits led this growth increasing
14.0%. The loans to deposits ratio at June 30, 2017 declined
to 95.6% from 96.6% at March 31, 2017.
Deposits increased 18.7% from $3.59 billion in the
second quarter last year, primarily due to the strength of Hanmi’s
retail branch network as money market and savings balance increased
49.3% compared a year ago.
|
As of (in
thousands) |
|
Percentage Change |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Q2-17 |
|
Q2-17 |
|
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
vs. Q1-17 |
|
vs. Q2-16 |
Deposit
Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand:
noninterest-bearing |
$ |
1,260,929 |
|
|
$ |
1,241,272 |
|
|
$ |
1,203,240 |
|
|
$ |
1,231,967 |
|
|
$ |
1,189,528 |
|
|
|
1.6 |
% |
|
|
6.0 |
% |
Demand:
interest-bearing |
|
93,390 |
|
|
|
99,433 |
|
|
|
96,856 |
|
|
|
94,272 |
|
|
|
92,776 |
|
|
|
-6.1 |
% |
|
|
0.7 |
% |
Money
market and savings |
|
1,528,127 |
|
|
|
1,534,578 |
|
|
|
1,329,324 |
|
|
|
1,242,502 |
|
|
|
1,023,421 |
|
|
|
-0.4 |
% |
|
|
49.3 |
% |
Time
deposits of $250,000 or less |
|
916,197 |
|
|
|
731,445 |
|
|
|
734,383 |
|
|
|
819,471 |
|
|
|
891,197 |
|
|
|
25.3 |
% |
|
|
2.8 |
% |
Time
deposits of more than $250,000 |
|
460,530 |
|
|
|
476,437 |
|
|
|
445,934 |
|
|
|
382,995 |
|
|
|
392,367 |
|
|
|
-3.3 |
% |
|
|
17.4 |
% |
Total
deposits |
$ |
4,259,173 |
|
|
$ |
4,083,165 |
|
|
$ |
3,809,737 |
|
|
$ |
3,771,207 |
|
|
$ |
3,589,289 |
|
|
|
4.3 |
% |
|
|
18.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At June 30, 2017, stockholders’ equity was $550.1 million,
compared with $539.5 million at March 31, 2017. Tangible common
stockholders’ equity was $537.4 million, or 10.83% of tangible
assets, compared with $526.7 million, or 10.98% of tangible assets
at March 31, 2017. Tangible book value per share was $16.59,
compared to $16.26 in the first quarter.
Hanmi continues to be well capitalized, with a
preliminary Tier 1 risk-based capital ratio of 12.72% and a Total
risk-based capital ratio of 15.87% at June 30, 2017, versus 12.93%
and 16.16%, respectively, at March 31, 2017.
|
As
of |
|
Amount Change |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Q2-17 |
|
Q2-17 |
|
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
vs. Q1-17 |
|
vs. Q2-16 |
Regulatory
Capital ratios (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
risk-based capital |
|
15.87 |
% |
|
|
16.16 |
% |
|
|
13.86 |
% |
|
|
14.99 |
% |
|
|
15.16 |
% |
|
|
-0.29 |
|
|
|
0.71 |
|
Tier 1
risk-based capital |
|
12.72 |
% |
|
|
12.93 |
% |
|
|
13.02 |
% |
|
|
13.89 |
% |
|
|
14.00 |
% |
|
|
-0.21 |
|
|
|
-1.28 |
|
Common
equity tier 1 capital |
|
12.36 |
% |
|
|
12.56 |
% |
|
|
12.73 |
% |
|
|
13.73 |
% |
|
|
13.85 |
% |
|
|
-0.20 |
|
|
|
-1.49 |
|
Tier 1
leverage capital ratio |
|
11.08 |
% |
|
|
11.21 |
% |
|
|
11.53 |
% |
|
|
11.68 |
% |
|
|
11.69 |
% |
|
|
-0.13 |
|
|
|
-0.61 |
|
Hanmi Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
risk-based capital |
|
15.63 |
% |
|
|
15.91 |
% |
|
|
13.64 |
% |
|
|
14.61 |
% |
|
|
14.58 |
% |
|
|
-0.28 |
|
|
|
1.05 |
|
Tier 1
risk-based capital |
|
14.81 |
% |
|
|
15.07 |
% |
|
|
12.80 |
% |
|
|
13.50 |
% |
|
|
13.43 |
% |
|
|
-0.26 |
|
|
|
1.38 |
|
Common
equity tier 1 capital |
|
14.81 |
% |
|
|
15.07 |
% |
|
|
12.80 |
% |
|
|
13.50 |
% |
|
|
13.43 |
% |
|
|
-0.26 |
|
|
|
1.38 |
|
Tier 1
leverage capital ratio |
|
12.90 |
% |
|
|
13.08 |
% |
|
|
11.33 |
% |
|
|
11.36 |
% |
|
|
11.21 |
% |
|
|
-0.18 |
|
|
|
1.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Preliminary ratios for June 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi declared a cash dividend of $0.19 per common share on its
common stock in the 2017 second quarter, in line with the prior
quarter. The dividend was paid on May 24, 2017, to stockholders of
record as of the close of business on May 8, 2017.
Asset Quality Nonperforming loans,
excluding PCI loans, were $16.5 million at the end of the second
quarter of 2017, or 0.41% of loans, compared with $12.8 million at
the end of the first quarter of 2017, or 0.32% of loans.
OREO was $4.3 million at the end of the second
quarter of 2017, down from $4.6 million at the end of the prior
quarter. Nonperforming assets were $20.8 million at the end of the
second quarter of 2017, or 0.42% of assets, compared with 0.36% of
assets at the end of the prior quarter.
Gross charge-offs for the second quarter of 2017
were $665,000 compared with $186,000 for the preceding quarter.
Recoveries of previously charged-off loans for the second quarter
of 2017 were $849,000 compared with $989,000 for the preceding
quarter. As a result, there were net recoveries of $184,000 for the
second quarter of 2017, compared to net recoveries of $803,000 for
the preceding quarter.
The allowance for loan and lease losses was $33.8
million as of June 30, 2017, generating an allowance of loan losses
to loans receivable ratio of 0.83% compared with 0.84% as of March
31, 2017.
|
As of or for the Three
Months Ended (in thousands) |
|
Amount Change |
|
June 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Q2-17 |
|
Q2-17 |
|
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
vs. Q1-17 |
|
vs. Q2-16 |
Asset
Quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual Non-PCI loans |
$ |
16,464 |
|
|
$ |
12,774 |
|
|
$ |
11,406 |
|
|
$ |
10,948 |
|
|
$ |
12,341 |
|
|
$ |
3,690 |
|
|
$ |
4,123 |
|
Loans 90
days or more past due and still accruing |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Nonperforming Non-PCI loans |
|
16,464 |
|
|
|
12,774 |
|
|
|
11,406 |
|
|
|
10,948 |
|
|
|
12,341 |
|
|
|
3,690 |
|
|
|
4,123 |
|
OREO,
net |
|
4,321 |
|
|
|
4,636 |
|
|
|
7,484 |
|
|
|
10,971 |
|
|
|
11,846 |
|
|
|
(315 |
) |
|
|
(7,525 |
) |
Nonperforming assets |
$ |
20,785 |
|
|
$ |
17,410 |
|
|
$ |
18,890 |
|
|
$ |
21,919 |
|
|
$ |
24,187 |
|
|
$ |
3,375 |
|
|
$ |
(3,402 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquent
loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
30 to 89 days past due and still accruing |
$ |
9,431 |
|
|
$ |
6,273 |
|
|
$ |
5,718 |
|
|
$ |
1,066 |
|
|
$ |
1,517 |
|
|
$ |
3,158 |
|
|
$ |
7,914 |
|
Delinquent loans to loans |
|
0.23 |
% |
|
|
0.16 |
% |
|
|
0.15 |
% |
|
|
0.03 |
% |
|
|
0.04 |
% |
|
|
0.07 |
|
|
|
0.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
loan and lease losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at beginning of period |
$ |
33,152 |
|
|
$ |
32,429 |
|
|
$ |
38,972 |
|
|
$ |
39,707 |
|
|
$ |
41,026 |
|
|
|
|
|
Loan and
lease loss provision (income) |
|
422 |
|
|
|
(80 |
) |
|
|
151 |
|
|
|
(1,450 |
) |
|
|
(1,515 |
) |
|
|
|
|
Net loan
charge-offs (recoveries) |
|
(184 |
) |
|
|
(803 |
) |
|
|
6,694 |
|
|
|
(715 |
) |
|
|
(196 |
) |
|
|
|
|
Balance
at end of period |
$ |
33,758 |
|
|
$ |
33,152 |
|
|
$ |
32,429 |
|
|
$ |
38,972 |
|
|
$ |
39,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Non-PCI loans to loans (1) |
|
0.41 |
% |
|
|
0.32 |
% |
|
|
0.30 |
% |
|
|
0.31 |
% |
|
|
0.36 |
% |
|
|
|
|
Nonperforming assets to assets (1) |
|
0.42 |
% |
|
|
0.36 |
% |
|
|
0.40 |
% |
|
|
0.50 |
% |
|
|
0.54 |
% |
|
|
|
|
Net loan
charge-offs (recoveries) to average loans (3) |
|
-0.02 |
% |
|
|
-0.08 |
% |
|
|
0.73 |
% |
|
|
-0.08 |
% |
|
|
-0.02 |
% |
|
|
|
|
Allowance for loan losses to loans |
|
0.83 |
% |
|
|
0.84 |
% |
|
|
0.84 |
% |
|
|
1.10 |
% |
|
|
1.15 |
% |
|
|
|
|
Allowance for loan losses to nonperforming Non-PCI loans (1)
(2) |
|
200.67 |
% |
|
|
252.54 |
% |
|
|
275.80 |
% |
|
|
305.43 |
% |
|
|
277.60 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
off-balance sheet items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at beginning of period |
$ |
1,184 |
|
|
$ |
1,184 |
|
|
$ |
1,491 |
|
|
$ |
1,475 |
|
|
$ |
1,220 |
|
|
|
|
|
Provision (income) for off-balance sheet items |
|
(49 |
) |
|
|
- |
|
|
|
(307 |
) |
|
|
16 |
|
|
|
255 |
|
|
|
|
|
Balance
at end of period |
$ |
1,135 |
|
|
$ |
1,184 |
|
|
$ |
1,184 |
|
|
$ |
1,491 |
|
|
$ |
1,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes PCI loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Excludes allowance for loan losses allocated to PCI
loans |
|
|
|
|
|
|
|
|
|
|
|
|
(3) Annualized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call
Management will host a conference call today,
July 18, 2017 at 2:00 p.m. PT (5:00 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 2:00 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 Corporation, 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 and lease losses; credit quality and the effect of credit
quality on our provision for loan and lease losses and allowance
for loan and lease 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, 2016, 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 Subsidiaries |
Consolidated Balance Sheets (Unaudited) |
(In
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
Percentage |
|
June 30, |
|
Percentage |
|
|
|
2017 |
|
|
|
2017 |
|
|
Change |
|
|
2016 |
|
|
Change |
|
Assets |
|
|
|
|
|
|
|
|
|
|
Cash
and due from banks |
$ |
138,507 |
|
|
$ |
138,592 |
|
|
-0.1 |
% |
|
$ |
156,632 |
|
|
-11.6 |
% |
|
Securities available for sale, at fair value |
|
571,846 |
|
|
|
548,010 |
|
|
4.3 |
% |
|
|
636,275 |
|
|
-10.1 |
% |
|
Loans
held for sale, at the lower of cost or fair value |
|
10,949 |
|
|
|
8,849 |
|
|
23.7 |
% |
|
|
12,833 |
|
|
-14.7 |
% |
|
Loans
and leases receivable, net of allowance for loan and lease
losses |
|
4,039,304 |
|
|
|
3,910,799 |
|
|
3.3 |
% |
|
|
3,409,603 |
|
|
18.5 |
% |
|
Accrued interest receivable |
|
11,167 |
|
|
|
10,774 |
|
|
3.6 |
% |
|
|
10,552 |
|
|
5.8 |
% |
|
Customers' liability on acceptances |
|
1,481 |
|
|
|
932 |
|
|
58.9 |
% |
|
|
2,456 |
|
|
-39.7 |
% |
|
Servicing assets |
|
10,480 |
|
|
|
10,609 |
|
|
-1.2 |
% |
|
|
11,337 |
|
|
-7.6 |
% |
|
Premises and equipment, net |
|
26,869 |
|
|
|
28,350 |
|
|
-5.2 |
% |
|
|
29,752 |
|
|
-9.7 |
% |
|
Goodwill and other intangible assets, net |
|
12,712 |
|
|
|
12,797 |
|
|
-0.7 |
% |
|
|
1,537 |
|
|
727.1 |
% |
|
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 |
% |
|
Other
real estate owned ("OREO"), net |
|
4,321 |
|
|
|
4,636 |
|
|
-6.8 |
% |
|
|
11,846 |
|
|
-63.5 |
% |
|
Income tax asset |
|
50,286 |
|
|
|
40,049 |
|
|
25.6 |
% |
|
|
52,161 |
|
|
-3.6 |
% |
|
Bank-owned life insurance |
|
49,982 |
|
|
|
49,722 |
|
|
0.5 |
% |
|
|
48,851 |
|
|
2.3 |
% |
|
Prepaid expenses and other assets |
|
29,057 |
|
|
|
31,317 |
|
|
-7.2 |
% |
|
|
26,690 |
|
|
8.9 |
% |
|
Total
assets |
$ |
4,973,346 |
|
|
$ |
4,811,821 |
|
|
3.4 |
% |
|
$ |
4,441,333 |
|
|
12.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
1,260,929 |
|
|
$ |
1,241,272 |
|
|
1.6 |
% |
|
$ |
1,189,528 |
|
|
6.0 |
% |
|
Interest-bearing |
|
2,998,244 |
|
|
|
2,841,893 |
|
|
5.5 |
% |
|
|
2,399,761 |
|
|
24.9 |
% |
|
Total
deposits |
|
4,259,173 |
|
|
|
4,083,165 |
|
|
4.3 |
% |
|
|
3,589,289 |
|
|
18.7 |
% |
|
Accrued interest payable |
|
3,432 |
|
|
|
2,619 |
|
|
31.0 |
% |
|
|
3,107 |
|
|
10.5 |
% |
|
Bank's liability on acceptances |
|
1,481 |
|
|
|
932 |
|
|
58.9 |
% |
|
|
2,456 |
|
|
-39.7 |
% |
|
FHLB
advances |
|
20,000 |
|
|
|
50,000 |
|
|
-60.0 |
% |
|
|
280,000 |
|
|
-92.9 |
% |
|
Subordinated debentures |
|
117,011 |
|
|
|
116,795 |
|
|
0.2 |
% |
|
|
18,821 |
|
|
521.7 |
% |
|
Accrued expenses and other liabilities |
|
22,109 |
|
|
|
18,768 |
|
|
17.8 |
% |
|
|
22,475 |
|
|
-1.6 |
% |
|
Total
liabilities |
|
4,423,206 |
|
|
|
4,272,279 |
|
|
3.5 |
% |
|
|
3,916,148 |
|
|
12.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity: |
|
|
|
|
|
|
|
|
|
|
Common stock |
|
33 |
|
|
|
33 |
|
|
0.0 |
% |
|
|
33 |
|
|
0.0 |
% |
|
Additional paid-in capital |
|
563,948 |
|
|
|
563,151 |
|
|
0.1 |
% |
|
|
560,089 |
|
|
0.7 |
% |
|
Accumulated other comprehensive income |
|
137 |
|
|
|
(1,603 |
) |
|
-108.5 |
% |
|
|
9,121 |
|
|
-98.5 |
% |
|
Retained earnings |
|
57,717 |
|
|
|
49,395 |
|
|
16.8 |
% |
|
|
26,396 |
|
|
118.7 |
% |
|
Less
treasury stock |
|
(71,695 |
) |
|
|
(71,434 |
) |
|
0.4 |
% |
|
|
(70,454 |
) |
|
1.8 |
% |
|
Total stockholders' equity |
|
550,140 |
|
|
|
539,542 |
|
|
2.0 |
% |
|
|
525,185 |
|
|
4.8 |
% |
|
Total
liabilities and stockholders' equity |
$ |
4,973,346 |
|
|
$ |
4,811,821 |
|
|
3.4 |
% |
|
$ |
4,441,333 |
|
|
12.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial Corporation and Subsidiaries |
Consolidated Statements of Income (Unaudited) |
(In
thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
June 30, |
|
March 31, |
|
Percentage |
|
June 30, |
|
Percentage |
|
|
|
2017 |
|
|
|
2017 |
|
|
Change |
|
|
2016 |
|
|
Change |
|
Interest and
dividend income: |
|
|
|
|
|
|
|
|
|
|
Interest
and fees on loans and leases |
$ |
47,971 |
|
|
$ |
45,378 |
|
|
5.7 |
% |
|
$ |
40,645 |
|
|
18.0 |
% |
|
Interest
on securities |
|
2,949 |
|
|
|
2,520 |
|
|
17.0 |
% |
|
|
2,886 |
|
|
2.2 |
% |
|
Dividends
on FRB and FHLB stock |
|
283 |
|
|
|
374 |
|
|
-24.3 |
% |
|
|
579 |
|
|
-51.1 |
% |
|
Interest
on deposits in other banks |
|
123 |
|
|
|
77 |
|
|
59.7 |
% |
|
|
49 |
|
|
151.0 |
% |
|
Total
interest and dividend income |
|
51,326 |
|
|
|
48,349 |
|
|
6.2 |
% |
|
|
44,159 |
|
|
16.2 |
% |
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
Interest
on deposits |
|
6,463 |
|
|
|
5,154 |
|
|
25.4 |
% |
|
|
3,684 |
|
|
75.4 |
% |
|
Interest
on FHLB advances |
|
49 |
|
|
|
468 |
|
|
-89.5 |
% |
|
|
299 |
|
|
-83.6 |
% |
|
Interest
on subordinated debentures |
|
1,636 |
|
|
|
373 |
|
|
338.6 |
% |
|
|
196 |
|
|
734.7 |
% |
|
Total
interest expense |
|
8,148 |
|
|
|
5,995 |
|
|
35.9 |
% |
|
|
4,179 |
|
|
95.0 |
% |
|
Net interest income
before provision for loan and lease losses |
|
43,178 |
|
|
|
42,354 |
|
|
1.9 |
% |
|
|
39,980 |
|
|
8.0 |
% |
|
Loan and
lease loss provision (income) |
|
422 |
|
|
|
(80 |
) |
|
-627.5 |
% |
|
|
(1,515 |
) |
|
-127.9 |
% |
|
Net interest income
after provision for loan and lease losses |
|
42,756 |
|
|
|
42,434 |
|
|
0.8 |
% |
|
|
41,495 |
|
|
3.0 |
% |
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts |
|
2,461 |
|
|
|
2,528 |
|
|
-2.7 |
% |
|
|
2,898 |
|
|
-15.1 |
% |
|
Trade
finance and other service charges and fees |
|
1,269 |
|
|
|
1,047 |
|
|
21.2 |
% |
|
|
1,064 |
|
|
19.3 |
% |
|
Gain on
sale of Small Business Administration ("SBA") loans |
|
2,668 |
|
|
|
1,464 |
|
|
82.2 |
% |
|
|
1,774 |
|
|
50.4 |
% |
|
Disposition gains on Purchased Credit Impaired ("PCI") loans |
|
540 |
|
|
|
183 |
|
|
195.1 |
% |
|
|
1,963 |
|
|
-72.5 |
% |
|
Net gain
on sales of securities |
|
938 |
|
|
|
269 |
|
|
248.7 |
% |
|
|
- |
|
|
- |
|
|
Other
operating income |
|
1,826 |
|
|
|
1,726 |
|
|
5.8 |
% |
|
|
1,674 |
|
|
9.1 |
% |
|
Total
noninterest income |
|
9,702 |
|
|
|
7,217 |
|
|
34.4 |
% |
|
|
9,373 |
|
|
3.5 |
% |
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
16,623 |
|
|
|
17,104 |
|
|
-2.8 |
% |
|
|
16,061 |
|
|
3.5 |
% |
|
Occupancy
and equipment |
|
3,878 |
|
|
|
3,982 |
|
|
-2.6 |
% |
|
|
3,938 |
|
|
-1.5 |
% |
|
Data
processing |
|
1,738 |
|
|
|
1,631 |
|
|
6.6 |
% |
|
|
1,454 |
|
|
19.5 |
% |
|
Professional fees |
|
1,554 |
|
|
|
1,148 |
|
|
35.4 |
% |
|
|
1,509 |
|
|
3.0 |
% |
|
Supplies
and communications |
|
745 |
|
|
|
635 |
|
|
17.3 |
% |
|
|
709 |
|
|
5.1 |
% |
|
Advertising and promotion |
|
1,015 |
|
|
|
802 |
|
|
26.6 |
% |
|
|
1,094 |
|
|
-7.2 |
% |
|
OREO
expense (income) |
|
519 |
|
|
|
(101 |
) |
|
-613.9 |
% |
|
|
183 |
|
|
183.6 |
% |
|
Merger
and integration costs |
|
(9 |
) |
|
|
(31 |
) |
|
-71.0 |
% |
|
|
- |
|
|
- |
|
|
Other
operating expenses |
|
2,881 |
|
|
|
2,070 |
|
|
39.2 |
% |
|
|
2,915 |
|
|
-1.2 |
% |
|
Total
noninterest expense |
|
28,944 |
|
|
|
27,240 |
|
|
6.3 |
% |
|
|
27,863 |
|
|
3.9 |
% |
|
Income before provision
for income taxes |
|
23,514 |
|
|
|
22,411 |
|
|
4.9 |
% |
|
|
23,005 |
|
|
2.2 |
% |
|
Income
tax expense |
|
9,057 |
|
|
|
8,628 |
|
|
5.0 |
% |
|
|
8,857 |
|
|
2.3 |
% |
|
Net income |
$ |
14,457 |
|
|
$ |
13,783 |
|
|
4.9 |
% |
|
$ |
14,148 |
|
|
2.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share: |
$ |
0.45 |
|
|
$ |
0.43 |
|
|
|
|
$ |
0.44 |
|
|
|
|
Diluted
earnings per share: |
$ |
0.45 |
|
|
$ |
0.43 |
|
|
|
|
$ |
0.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
32,078,038 |
|
|
|
32,001,766 |
|
|
|
|
|
31,882,489 |
|
|
|
|
Diluted |
|
32,243,034 |
|
|
|
32,191,458 |
|
|
|
|
|
32,029,910 |
|
|
|
|
Common shares
outstanding |
|
32,393,856 |
|
|
|
32,392,580 |
|
|
|
|
|
32,260,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial
Corporation and Subsidiaries |
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Income (Unaudited) |
|
|
|
|
|
|
|
|
|
|
(In thousands, except
share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended |
|
|
|
|
|
|
June 30, |
|
June 30, |
|
Percentage |
|
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
Change |
|
|
|
|
|
Interest and
dividend income: |
|
|
|
|
|
|
|
|
|
|
Interest
and fees on loans and leases |
$ |
93,349 |
|
|
$ |
79,712 |
|
|
17.1 |
% |
|
|
|
|
|
Interest
on securities |
|
5,468 |
|
|
|
5,903 |
|
|
-7.4 |
% |
|
|
|
|
|
Dividends
on FRB and FHLB stock |
|
657 |
|
|
|
1,121 |
|
|
-41.4 |
% |
|
|
|
|
|
Interest
on deposits in other banks |
|
200 |
|
|
|
97 |
|
|
106.2 |
% |
|
|
|
|
|
Total
interest and dividend income |
|
99,674 |
|
|
|
86,833 |
|
|
14.8 |
% |
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
Interest
on deposits |
|
11,617 |
|
|
|
7,410 |
|
|
56.8 |
% |
|
|
|
|
|
Interest
on FHLB advances |
|
517 |
|
|
|
494 |
|
|
4.7 |
% |
|
|
|
|
|
Interest
on subordinated debentures |
|
2,009 |
|
|
|
379 |
|
|
430.1 |
% |
|
|
|
|
|
Interest
on Other Borrowings |
|
- |
|
|
|
- |
|
|
- |
|
|
|
|
|
|
Total
interest expense |
|
14,143 |
|
|
|
8,283 |
|
|
70.7 |
% |
|
|
|
|
|
Net interest income
before provision for loan and leas losses |
|
85,531 |
|
|
|
78,550 |
|
|
8.9 |
% |
|
|
|
|
|
Loan and
lease loss provision (income) |
|
342 |
|
|
|
(3,040 |
) |
|
-111.3 |
% |
|
|
|
|
|
Net interest income
after provision for loan and lease losses |
|
85,189 |
|
|
|
81,590 |
|
|
4.4 |
% |
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts |
|
4,989 |
|
|
|
5,899 |
|
|
-15.4 |
% |
|
|
|
|
|
Trade
finance and other service charges and fees |
|
2,316 |
|
|
|
2,109 |
|
|
9.8 |
% |
|
|
|
|
|
Gain on
sale of Small Business Administration ("SBA") loans |
|
4,132 |
|
|
|
2,632 |
|
|
57.0 |
% |
|
|
|
|
|
Net gain
on sales of securities |
|
1,206 |
|
|
|
- |
|
|
- |
|
|
|
|
|
|
Disposition gains on Purchased Credit Impaired ("PCI") loans |
|
723 |
|
|
|
2,622 |
|
|
-72.4 |
% |
|
|
|
|
|
Other
operating income |
|
3,551 |
|
|
|
3,072 |
|
|
15.6 |
% |
|
|
|
|
|
Total
noninterest income |
|
16,917 |
|
|
|
16,334 |
|
|
3.6 |
% |
|
|
|
|
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
33,727 |
|
|
|
31,759 |
|
|
6.2 |
% |
|
|
|
|
|
Occupancy
and equipment |
|
7,861 |
|
|
|
7,434 |
|
|
5.7 |
% |
|
|
|
|
|
Data
processing |
|
3,369 |
|
|
|
2,889 |
|
|
16.6 |
% |
|
|
|
|
|
Professional fees |
|
2,702 |
|
|
|
2,974 |
|
|
-9.1 |
% |
|
|
|
|
|
Supplies
and communications |
|
1,379 |
|
|
|
1,445 |
|
|
-4.6 |
% |
|
|
|
|
|
Advertising and promotion |
|
1,817 |
|
|
|
1,616 |
|
|
12.4 |
% |
|
|
|
|
|
OREO
expense (income) |
|
418 |
|
|
|
648 |
|
|
-35.5 |
% |
|
|
|
|
|
Merger
and integration costs |
|
(40 |
) |
|
|
- |
|
|
- |
|
|
|
|
|
|
Other
operating expenses |
|
4,948 |
|
|
|
5,167 |
|
|
-4.2 |
% |
|
|
|
|
|
Total
noninterest expense |
|
56,181 |
|
|
|
53,932 |
|
|
4.2 |
% |
|
|
|
|
|
Income before provision
for income taxes |
|
45,925 |
|
|
|
43,992 |
|
|
4.4 |
% |
|
|
|
|
|
Income
tax expense |
|
17,685 |
|
|
|
15,040 |
|
|
17.6 |
% |
|
|
|
|
|
Net income |
$ |
28,240 |
|
|
$ |
28,952 |
|
|
-2.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share: |
$ |
0.88 |
|
|
$ |
0.90 |
|
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
0.87 |
|
|
$ |
0.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
32,040,113 |
|
|
|
31,864,427 |
|
|
|
|
|
|
|
|
Diluted |
|
32,216,671 |
|
|
|
32,001,163 |
|
|
|
|
|
|
|
|
Common shares
outstanding |
|
32,393,856 |
|
|
|
32,260,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial Corporation and Subsidiaries |
Average Balance, Average Yield Earned, and Average Rate
Paid (Unaudited) |
(In
thousands, except ratios) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
June 30, 2017 |
|
March 31, 2017 |
|
June 30, 2016 |
|
|
|
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) |
$ |
3,951,934 |
|
$ |
47,971 |
4.87 |
% |
|
$ |
3,881,686 |
|
$ |
45,378 |
4.74 |
% |
|
$ |
3,328,416 |
|
$ |
40,645 |
4.91 |
% |
|
Securities (2) |
|
585,384 |
|
|
3,444 |
2.35 |
% |
|
|
526,549 |
|
|
3,026 |
2.30 |
% |
|
|
657,756 |
|
|
3,397 |
2.07 |
% |
|
FRB and
FHLB stock |
|
16,385 |
|
|
283 |
6.93 |
% |
|
|
16,385 |
|
|
374 |
9.26 |
% |
|
|
30,808 |
|
|
579 |
7.52 |
% |
|
Interest-bearing deposits in other banks |
|
47,402 |
|
|
123 |
1.04 |
% |
|
|
38,600 |
|
|
77 |
0.81 |
% |
|
|
38,598 |
|
|
49 |
0.51 |
% |
|
Total
interest-earning assets |
|
4,601,105 |
|
|
51,821 |
4.52 |
% |
|
|
4,463,220 |
|
|
48,855 |
4.44 |
% |
|
|
4,055,578 |
|
|
44,670 |
4.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks |
|
116,750 |
|
|
|
|
|
117,802 |
|
|
|
|
|
114,247 |
|
|
|
|
Allowance
for loan losses |
|
(33,540 |
) |
|
|
|
|
(32,842 |
) |
|
|
|
|
(41,483 |
) |
|
|
|
Other
assets |
|
191,158 |
|
|
|
|
|
190,041 |
|
|
|
|
|
197,158 |
|
|
|
|
Total
noninterest-earning assets |
|
274,368 |
|
|
|
|
|
275,001 |
|
|
|
|
|
269,922 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
4,875,473 |
|
|
|
|
$ |
4,738,221 |
|
|
|
|
$ |
4,325,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Demand:
interest-bearing |
$ |
93,873 |
|
$ |
18 |
0.08 |
% |
|
$ |
97,602 |
|
$ |
19 |
0.08 |
% |
|
$ |
96,397 |
|
$ |
19 |
0.08 |
% |
|
Money
market and savings |
|
1,532,733 |
|
|
3,224 |
0.84 |
% |
|
|
1,406,903 |
|
|
2,666 |
0.77 |
% |
|
|
944,355 |
|
|
1,212 |
0.52 |
% |
|
Time
deposits |
|
1,320,005 |
|
|
3,221 |
0.98 |
% |
|
|
1,173,184 |
|
|
2,469 |
0.85 |
% |
|
|
1,268,127 |
|
|
2,453 |
0.78 |
% |
|
Total
interest-bearing deposits |
|
2,946,611 |
|
|
6,463 |
0.88 |
% |
|
|
2,677,689 |
|
|
5,154 |
0.78 |
% |
|
|
2,308,879 |
|
|
3,684 |
0.64 |
% |
|
FHLB
advances |
|
20,000 |
|
|
49 |
0.98 |
% |
|
|
270,500 |
|
|
468 |
0.70 |
% |
|
|
278,077 |
|
|
299 |
0.43 |
% |
|
Subordinated debentures |
|
116,850 |
|
|
1,636 |
5.59 |
% |
|
|
30,950 |
|
|
373 |
4.82 |
% |
|
|
18,781 |
|
|
196 |
4.20 |
% |
|
Total
interest-bearing liabilities |
|
3,083,461 |
|
|
8,148 |
1.06 |
% |
|
|
2,979,139 |
|
|
5,995 |
0.82 |
% |
|
|
2,605,737 |
|
|
4,179 |
0.65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits: noninterest-bearing |
|
1,219,876 |
|
|
|
|
|
1,196,151 |
|
|
|
|
|
1,170,486 |
|
|
|
|
Other
liabilities |
|
27,853 |
|
|
|
|
|
28,658 |
|
|
|
|
|
31,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
544,283 |
|
|
|
|
|
534,273 |
|
|
|
|
|
518,015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
$ |
4,875,473 |
|
|
|
|
$ |
4,738,221 |
|
|
|
|
$ |
4,325,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
43,673 |
|
|
|
$ |
42,860 |
|
|
|
$ |
40,491 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
deposits |
|
|
0.62 |
% |
|
|
|
0.54 |
% |
|
|
|
0.43 |
% |
|
Net interest
spread |
|
|
3.46 |
% |
|
|
|
3.62 |
% |
|
|
|
3.78 |
% |
|
Net interest
margin |
|
|
3.81 |
% |
|
|
|
3.89 |
% |
|
|
|
4.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Subsidiaries |
Average Balance, Average Yield Earned, and Average Rate
Paid (Unaudited) |
(In
thousands, except ratios) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
June 30, 2017 |
|
June 30, 2016 |
|
|
|
|
|
|
|
Interest |
Average |
|
|
Interest |
Average |
|
|
|
|
|
|
Average |
Income / |
Yield / |
|
Average |
Income / |
Yield / |
|
|
|
|
|
|
Balance |
Expense |
Rate |
|
Balance |
Expense |
Rate |
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans
(1) |
$ |
3,917,004 |
|
$ |
93,349 |
4.81 |
% |
|
$ |
3,260,625 |
|
$ |
79,712 |
4.92 |
% |
|
|
|
|
|
Securities (2) |
|
556,129 |
|
|
6,468 |
2.33 |
% |
|
|
670,063 |
|
|
6,926 |
1.03 |
% |
|
|
|
|
|
FRB and
FHLB stock |
|
16,385 |
|
|
657 |
8.09 |
% |
|
|
30,652 |
|
|
1,121 |
3.66 |
% |
|
|
|
|
|
Interest-bearing deposits in other banks |
|
43,026 |
|
|
200 |
0.94 |
% |
|
|
41,343 |
|
|
97 |
0.47 |
% |
|
|
|
|
|
Total
interest-earning assets |
|
4,532,544 |
|
|
100,674 |
4.48 |
% |
|
|
4,002,683 |
|
|
87,856 |
4.41 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks |
|
117,273 |
|
|
|
|
|
114,455 |
|
|
|
|
|
|
|
|
Allowance
for loan losses |
|
(33,193 |
) |
|
|
|
|
(42,001 |
) |
|
|
|
|
|
|
|
Other
assets |
|
190,602 |
|
|
|
|
|
198,151 |
|
|
|
|
|
|
|
|
Total
noninterest-earning assets |
|
274,682 |
|
|
|
|
|
270,605 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
4,807,226 |
|
|
|
|
$ |
4,273,288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Demand:
interest-bearing |
$ |
95,727 |
|
$ |
38 |
0.08 |
% |
|
$ |
95,979 |
|
$ |
38 |
0.08 |
% |
|
|
|
|
|
Money
market and savings |
|
1,470,165 |
|
|
5,890 |
0.81 |
% |
|
|
923,196 |
|
|
2,295 |
0.50 |
% |
|
|
|
|
|
Time
deposits |
|
1,247,000 |
|
|
5,689 |
0.92 |
% |
|
|
1,307,347 |
|
|
5,077 |
0.78 |
% |
|
|
|
|
|
Total
interest-bearing deposits |
|
2,812,892 |
|
|
11,617 |
0.83 |
% |
|
|
2,326,522 |
|
|
7,410 |
0.64 |
% |
|
|
|
|
|
FHLB
advances |
|
144,558 |
|
|
517 |
0.72 |
% |
|
|
229,973 |
|
|
494 |
0.43 |
% |
|
|
|
|
|
Subordinated debentures |
|
74,137 |
|
|
2,009 |
5.41 |
% |
|
|
18,751 |
|
|
379 |
4.06 |
% |
|
|
|
|
|
Total
interest-bearing liabilities |
|
3,031,587 |
|
|
14,143 |
0.94 |
% |
|
|
2,575,246 |
|
|
8,283 |
0.65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits: noninterest-bearing |
|
1,208,079 |
|
|
|
|
|
1,154,654 |
|
|
|
|
|
|
|
|
Other
liabilities |
|
28,255 |
|
|
|
|
|
34,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
539,305 |
|
|
|
|
|
508,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
$ |
4,807,226 |
|
|
|
|
$ |
4,273,288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
86,531 |
|
|
|
$ |
79,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
deposits |
|
|
0.58 |
% |
|
|
|
0.43 |
% |
|
|
|
|
|
Net interest
spread |
|
|
3.54 |
% |
|
|
|
3.76 |
% |
|
|
|
|
|
Net interest
margin |
|
|
3.85 |
% |
|
|
|
4.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
Acquisition Accounting
Core loan yield, core deposit costs, net interest
income and net interest margin excluding acquisition accounting are
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 results of operations. The calculation of
these measures is illustrated below. 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 results 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:
|
For the Three Months
Ended |
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
2017 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
Core loan
yield |
|
4.82 |
% |
|
4.68 |
% |
|
|
4.63 |
% |
|
4.63 |
% |
|
|
4.78 |
% |
|
|
|
|
|
|
|
|
|
|
Accretion
of discount on purchased loans |
|
0.05 |
% |
|
0.06 |
% |
|
|
0.09 |
% |
|
0.08 |
% |
|
|
0.13 |
% |
|
|
|
|
|
|
|
|
|
|
As
reported |
|
4.87 |
% |
|
4.74 |
% |
|
|
4.72 |
% |
|
4.71 |
% |
|
|
4.91 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core deposit
cost |
|
0.63 |
% |
|
0.55 |
% |
|
|
0.54 |
% |
|
0.54 |
% |
|
|
0.52 |
% |
|
|
|
|
|
|
|
|
|
|
Accretion
of time deposits premium |
|
0.01 |
% |
|
0.01 |
% |
|
|
0.04 |
% |
|
0.07 |
% |
|
|
0.09 |
% |
|
|
|
|
|
|
|
|
|
|
As
reported |
|
0.62 |
% |
|
0.54 |
% |
|
|
0.50 |
% |
|
0.47 |
% |
|
|
0.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
June 30, 2017 |
|
March 31, 2017 |
|
December 31, 2016 |
|
September 30, 2016 |
|
June 30, 2016 |
|
Amount |
|
Rate |
|
Amount |
|
Rate |
|
Amount |
|
Rate |
|
Amount |
|
Rate |
|
Amount |
|
Rate |
Net interest
income and net interest margin excluding acquisition
accounting (1) |
$ |
43,129 |
|
|
3.76 |
% |
|
$ |
42,230 |
|
|
3.84 |
% |
|
$ |
41,489 |
|
|
3.86 |
% |
|
$ |
38,874 |
|
|
3.75 |
% |
|
$ |
38,671 |
|
|
3.84 |
% |
Accretion
of discount on Non-PCI loans |
|
457 |
|
|
0.04 |
% |
|
|
527 |
|
|
0.05 |
% |
|
|
781 |
|
|
0.07 |
% |
|
|
648 |
|
|
0.06 |
% |
|
|
994 |
|
|
0.10 |
% |
Accretion
of discount on PCI loans |
|
52 |
|
|
0.00 |
% |
|
|
54 |
|
|
0.00 |
% |
|
|
78 |
|
|
0.01 |
% |
|
|
26 |
|
|
0.00 |
% |
|
|
97 |
|
|
0.01 |
% |
Accretion
of time deposits premium |
|
116 |
|
|
0.01 |
% |
|
|
126 |
|
|
0.01 |
% |
|
|
314 |
|
|
0.03 |
% |
|
|
610 |
|
|
0.06 |
% |
|
|
791 |
|
|
0.08 |
% |
Amortization of subordinated debentures discount |
|
(81 |
) |
|
-0.01 |
% |
|
|
(77 |
) |
|
-0.01 |
% |
|
|
(90 |
) |
|
-0.01 |
% |
|
|
(67 |
) |
|
-0.01 |
% |
|
|
(62 |
) |
|
-0.01 |
% |
Net
impact |
|
544 |
|
|
0.05 |
% |
|
|
630 |
|
|
0.05 |
% |
|
|
1,083 |
|
|
0.10 |
% |
|
|
1,217 |
|
|
0.11 |
% |
|
|
1,820 |
|
|
0.18 |
% |
As reported, on
a fully taxable equivalent basis (1) |
$ |
43,673 |
|
|
3.81 |
% |
|
$ |
42,860 |
|
|
3.89 |
% |
|
$ |
42,572 |
|
|
3.96 |
% |
|
$ |
40,091 |
|
|
3.86 |
% |
|
$ |
40,491 |
|
|
4.02 |
% |
(1) Amounts calculated on a fully taxable equivalent
basis using the current statutory federal tax rate: rates may
not sum due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
Hanmi Financial Corporation |
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
Assets |
$ |
4,973,346 |
|
|
$ |
4,811,821 |
|
|
$ |
4,701,346 |
|
|
$ |
4,402,180 |
|
|
$ |
4,441,333 |
|
|
Less
goodwill |
|
(11,031 |
) |
|
|
(11,031 |
) |
|
|
(11,031 |
) |
|
|
- |
|
|
|
- |
|
|
Less
other intangible assets,net |
|
(1,681 |
) |
|
|
(1,766 |
) |
|
|
(1,858 |
) |
|
|
(1,456 |
) |
|
|
(1,537 |
) |
|
Tangible
assets |
$ |
4,960,634 |
|
|
$ |
4,799,024 |
|
|
$ |
4,688,457 |
|
|
$ |
4,400,724 |
|
|
$ |
4,439,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stockholders' equity |
$ |
550,140 |
|
|
$ |
539,542 |
|
|
$ |
531,025 |
|
|
$ |
531,198 |
|
|
$ |
525,185 |
|
|
Less
goodwill |
|
(11,031 |
) |
|
|
(11,031 |
) |
|
|
(11,031 |
) |
|
|
- |
|
|
|
- |
|
|
Less
other intangible assets |
|
(1,681 |
) |
|
|
(1,766 |
) |
|
|
(1,858 |
) |
|
|
(1,456 |
) |
|
|
(1,537 |
) |
|
Tangible
Common stockholders' equity |
$ |
537,428 |
|
|
$ |
526,745 |
|
|
$ |
518,136 |
|
|
$ |
529,742 |
|
|
$ |
523,648 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stockholders' equity to assets |
|
11.06 |
% |
|
|
11.21 |
% |
|
|
11.30 |
% |
|
|
12.07 |
% |
|
|
11.82 |
% |
|
Tangible
common equity to tangible assets |
|
10.83 |
% |
|
|
10.98 |
% |
|
|
11.05 |
% |
|
|
12.04 |
% |
|
|
11.79 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Common
shares outstanding |
|
32,393,856 |
|
|
|
32,392,580 |
|
|
|
32,330,747 |
|
|
|
32,252,774 |
|
|
|
32,260,320 |
|
|
Tangible
common equity per common share |
$ |
16.59 |
|
|
$ |
16.26 |
|
|
$ |
16.03 |
|
|
$ |
16.42 |
|
|
$ |
16.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Contacts:
Romolo (Ron) Santarosa
Senior Executive Vice President & Chief Financial Officer
213-427-5636
Richard Pimentel
Senior Vice President & Corporate Finance Officer
213-427-3191
Lasse Glassen
Investor Relations
Addo Investor Relations
310-829-5400
Hanmi Financial (NASDAQ:HAFC)
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