Hanmi Financial Corporation (Nasdaq:HAFC), the holding company for
Hanmi Bank, today reported it earned $10.4 million, or $0.07 per
diluted share, for the first quarter of 2011, up 96.5% from $5.3
million, or $0.04 per diluted share, in the fourth quarter of 2010,
and a substantial improvement from its net loss of $49.5 million,
or $0.97 per share, in the year ago quarter.
"As we start 2011, we are pleased that our first quarter
financial results reflect improvement in the strength of our
franchise. Our increasing profitability in this quarter reflects
continuing improvements in credit quality, net interest margin, and
efficiency," said Jay S. Yoo, President and Chief Executive
Officer. "Hanmi is emerging from this credit cycle with a stronger
balance sheet than a year ago, and we anticipate improved operating
results for the rest of 2011 and going forward. We believe our
recent performance reflects the work of our employees and the
confidence our customers show in us."
First Quarter 2011 Highlights (at or for the
period ended March 31, 2011)
- Hanmi's first quarter net income of $10.4 million, or $0.07 per
diluted share, was the second consecutive quarterly profit and the
largest quarterly profit since the second quarter of 2007.
- Non-performing assets (NPA) declined 10.8 % to $154.4 million,
or 5.36% of total assets, from $173.1 million, or 5.95% of total
assets in the fourth quarter, which represents the lowest level
since the first quarter of 2009. Nonperforming assets were down
45.8% from $284.6 million, or 9.43% of total assets a year
ago.
- Delinquent loans, which are 30 to 89 days past due, were $20.7
million, a slight decrease of $746,000 from the fourth quarter of
2010, and significantly improved year-over-year, declining 69.8%
from $68.6 million a year ago.
- There was no provision for credit losses during the
first-quarter of 2011. Total net charge-offs declined to $21.6
million in the first quarter of 2011, a $13.7 million reduction
from $35.2 million in the fourth quarter of 2010. While net
charge-offs continued to exceed the provision for loan losses in
the first quarter, the improving credit quality of the loan
portfolio allowed for the reduction of the allowance this
quarter.
- The coverage ratio of the loan loss allowance to non-performing
loans increased to 82.9% at March 31, 2011, compared to 67.8% a
year ago.
- Total assets were $2.88 billion, a decline of $27.5 million, or
0.9%, on a sequential quarter basis. Similarly, total deposits were
$2.43 billion, down 1.5% from the fourth quarter of 2010.
Consistent with previous quarters, the balance-sheet deleveraging
slowed substantially in the first quarter of 2011.
- Total deposits decreased $35.8 million, or 1.5%, to $2.43
billion during the quarter from $2.47 billion in the prior quarter
while core deposits, which are total deposits less time deposits
greater than $100,000, increased to $1.45 billion, up $105.1
million, or 7.8%, on a sequential quarter basis, due to a continued
core-deposit campaign.
- Net interest margin (NIM) improved to 3.66% in the first
quarter of 2011, up 18 basis points from 3.48% in the fourth
quarter of 2010 and down just 3 basis points from the first quarter
a year ago.
- Capital ratios remained strong with total risk based capital to
assets at 13.0% up from 12.22% at the end of 2010.
Capital Management
"With the $120 million capital raise last year and positive
earnings for the last two quarters, our capital levels at Hanmi
Bank have continued to improve and reached their highest level
since the third quarter of 2009," Yoo stated. "We are continuing to
work on strengthening our balance sheet and fulfilling all current
regulatory requirements. While internally our asset quality is
improving, and externally the economy appears to be gradually
recovering, we remain focused on continuing to improve our
performance and condition. We continue to evaluate opportunities to
further enhance our capital position with additional capital, so as
to strengthen our balance sheet for future growth as well as
unexpected events. We are actively considering various alternatives
for raising capital, including Woori Finance's proposed investment,
and expect to make progress during the second quarter of 2011."
At March 31, 2011, the Bank's Total Risk-Based Capital Ratio was
13.0% compared to 12.22% in the immediate prior quarter and 7.81% a
year ago. Tier 1 Risk-Based Capital Ratio was 11.70% compared to
10.91% at December 31, 2010, and 6.49% a year ago. First quarter
Tier 1 Leverage Ratio was 9.08% compared to 8.55% in the fourth
quarter and 5.68% in the first quarter of 2010. The Bank's Tangible
Common Equity to Tangible Assets at March 31, 2011was 9.10%
compared to 8.59% in the linked quarter and 5.89% a year ago. All
of the Bank's capital ratios were above the minimum regulatory
standards for being considered to be "well-capitalized" for
regulatory purposes. The Bank's Tangible Common Equity to
Tangible Assets at March 31, 2011, is still below the requirements
set forth in the Final Order issued to Hanmi Bank by the California
Department of Financial Institutions requiring
9.5%.
Asset Quality
"Our efforts to improve our credit risk management system are
bringing positive results," said J.H. Son, Executive Vice President
and Chief Credit Officer. "We have committed additional
resources to credit underwriting, monitoring and review, as well as
devoting time and resources to problem asset resolution and asset
sales. We believe that these initiatives have significantly
reduced nonperforming assets from the peak reached in the first
quarter of last year." Non-performing loans (NPLs) declined
10% to $151.7 million at March 31, 2011, from $169.0 million at
December 31, 2010, and are down 42% from $262.2 million at March
31, 2010. Of the total NPLs, $53.4 million, or 35%, were
current on payments. In addition, $20.9 million, or 14%, were
recorded at the lower of cost or fair value as we have classified
these loans as held for sale. During the quarter, we sold 18 NPLs
with net proceeds of $27.9 million, which generated a net gain of
$1.9 million and a recovery of $578,000 in the first quarter of
2011. Hanmi actively manages its loan portfolio and regularly
sells NPLs prior to foreclosure, which partially accounts for the
reduction in NPAs. The following table shows non-performing loans
by loan category:
| Total
Non-Performing Loans |
| (Dollars in Thousands) |
3/31/2011 |
% of Total NPL |
12/31/2010 |
% of Total NPL |
3/31/2010 |
% of Total NPL |
| Real Estate
Loans: |
|
|
|
|
|
|
| Commercial Property |
|
|
|
|
|
|
| Retail |
8,669 |
5.7% |
10,998 |
6.5% |
31,604 |
12.1% |
| Land |
22,523 |
14.8% |
26,808 |
15.9% |
46,388 |
17.7% |
| Other |
5,108 |
3.4% |
10,131 |
6.0% |
16,498 |
6.3% |
| Construction |
23,421 |
15.4% |
19,097 |
11.3% |
9,823 |
3.7% |
| Residential Property |
2,014 |
1.3% |
1,926 |
1.1% |
2,813 |
1.1% |
| |
|
|
|
|
|
|
| Commercial & Industrial
Loans: |
|
|
|
|
|
|
| Commercial Term |
|
|
|
|
|
|
| Unsecured |
10,435 |
6.9% |
17,065 |
10.1% |
22,299 |
8.5% |
| Secured by Real Estate |
45,763 |
30.2% |
45,946 |
27.2% |
93,045 |
35.5% |
| Commercial Lines of
Credit |
2,169 |
1.4% |
2,798 |
1.7% |
4,775 |
1.8% |
| SBA |
30,539 |
20.1% |
33,085 |
19.6% |
31,778 |
12.1% |
| International Loans |
123 |
0.1% |
127 |
0.1% |
2,427 |
0.9% |
| |
|
|
|
|
|
|
| Consumer
Loans |
966 |
0.6% |
1,047 |
0.6% |
782 |
0.3% |
| TOTAL NPL
(1) |
151,730 |
100.0% |
169,028 |
100.0% |
262,232 |
100.0% |
| (1) Includes loans held for
sale of $26.9 million, $26.6 million and $5.5 million as of
March 31, 2011, December 31, 2010, and March 31, 2010,
respectively. |
Sale of other real estate owned (OREO), continued during the
first quarter, with three properties sold for net proceeds of $1.8
million, resulting in a $219,000 net gain. OREO totaled $2.6
million at March 31, 2011, down from $4.1 million at December 31,
2010 and also down from $22.4 million a year ago.
"We are also diligently working with customers who only recently
have fallen behind on payments and are less than 90 days delinquent
on their loans," Son said. Delinquent loans, which are not
included in the NPL totals, decreased to $20.7 million, or 0.95% of
gross loans at March 31, 2011, from $68.6 million, or 2.56% of
gross loans at March 31, 2010. On a sequential quarter basis,
the amount of delinquent loans on accrual status slightly decreased
746,000 from $21.5 million or 0.95% of gross loans at December 31,
2010.
|
|
|
|
|
|
|
| Delinquent Loans on
Accrual Status |
|
|
|
|
|
|
| (Dollars in Thousands) |
3/31/2011 |
% of
Total |
12/31/2010 |
% of
Total |
3/31/2010 |
% of
Total |
| Real Estate
Loans: |
|
|
|
|
|
|
| Commercial Property |
|
|
|
|
|
|
| Retail |
295 |
1.4% |
-- |
-- |
9,923 |
14.5% |
| Land |
1,000 |
4.8% |
-- |
-- |
2,300 |
3.4% |
| Other |
2,247 |
10.8% |
-- |
-- |
5,232 |
7.6% |
| Construction |
-- |
-- |
4,894 |
22.8% |
-- |
-- |
| Residential Property |
2,069 |
10.0% |
522 |
2.4% |
284 |
0.4% |
| |
|
|
|
|
|
|
| Commercial &
Industrial Loans: |
|
|
|
|
|
|
| Commercial Term |
|
|
|
|
|
|
| Unsecured |
3,142 |
15.2% |
3,620 |
16.9% |
8,826 |
12.9% |
| Secured by Real Estate |
5,026 |
24.3% |
7,251 |
33.8% |
35,711 |
52.0% |
| Commercial Lines of
Credit |
1,457 |
7.0% |
160 |
0.7% |
2,327 |
3.4% |
| SBA |
5,295 |
25.6% |
4,381 |
20.4% |
3,443 |
5.0% |
| International Loans |
-- |
-- |
-- |
-- |
161 |
0.2% |
| |
|
|
|
|
|
|
| Consumer
Loans |
180 |
0.9% |
629 |
2.9% |
433 |
0.6% |
| TOTAL (1) |
20,711 |
100.0% |
21,457 |
100.0% |
68,640 |
100.0% |
| (1) Includes loans held for
sale of $774,000 as of March 31, 2011. |
At March 31, 2011, the allowance for loan losses declined 13.9%
to $125.8 million, or 5.79% of gross loans, from $146.1 million in
the preceding quarter, or 6.44% of gross loans, and compared to
$177.8 million, or 6.63% of gross loans a year ago. The ratio
of Hanmi's loan loss allowance to non-performing loans at March 31,
2011, increased to 83%, up from 68% a year ago. First quarter
charge-offs, net of recoveries, were $21.6 million compared to
$35.2 million in the fourth quarter and $26.4 million in the first
quarter of 2010.
Hanmi recorded a zero provision for credit losses in the first
quarter of 2011, down from $5.0 million and $58.0 million in the
prior quarter and the first quarter a year ago,
respectively. Total allowance for loan and lease losses has
subsequently decreased over the last two consecutive quarters as a
result of continuing improvements in Hanmi's credit metrics. As
such, provisioning expense with relation to loans has been minimal
for the past two quarters. This assessment also takes into account
many factors, including net loan charge-offs, nonaccrual loans,
specific reserves, risk-rating migration and changes in the
portfolio composition and size.
The Bank reversed $1.3 million in provision for off-balance
sheet items, resulting from a decrease of off-balance sheet
reserves from $3.4 million in the prior quarter to $2.1 million in
the current quarter. The reversal was primarily due to
off-balance reserves for international loans, commercial lines of
credit, and construction loans, which decreased by $787,000,
$155,000, and $145,000,
respectively.
Hanmi has used its resources to proactively resolve credit
issues arising from the current economic downturn. The
following table shows Hanmi's credit quality trends since the first
quarter of 2007.
| Credit Quality
Trends (Dollars in Thousands) |
|
|
|
|
|
| |
Provision for Credit
Losses |
Net
Charge-offs |
Allowance for Loan Losses to
Gross Loans (%) |
30-89 Days Past Due to Gross
Loans(%) |
Non-performing Assets to
Total Assets (%) |
| 3/31/2007 |
6,132 |
2,404 |
1.08 |
0.69 |
0.52 |
| 6/30/2007 |
3,023 |
2,518 |
1.05 |
0.52 |
0.61 |
| 9/30/2007 |
8,464 |
6,084 |
1.07 |
0.52 |
1.12 |
| 12/31/2007 |
20,704 |
11,628 |
1.33 |
0.61 |
1.37 |
| 3/31/2008 |
17,821 |
7,297 |
1.60 |
0.73 |
2.25 |
| 6/30/2008 |
19,229 |
8,220 |
1.88 |
0.94 |
2.91 |
| 9/30/2008 |
13,176 |
11,831 |
1.91 |
0.68 |
3.04 |
| 12/31/2008 |
25,450 |
18,622 |
2.11 |
1.23 |
3.14 |
| 3/31/2009 |
45,953 |
11,813 |
3.16 |
1.45 |
4.04 |
| 6/30/2009 |
23,934 |
23,597 |
3.33 |
1.51 |
5.20 |
| 9/30/2009 |
49,500 |
29,875 |
4.19 |
0.96 |
5.83 |
| 12/31/2009 |
77,000 |
57,312 |
5.14 |
1.46 |
7.76 |
| 3/31/2010 |
57,996 |
26,393 |
6.63 |
2.56 |
9.43 |
| 6/30/2010 |
37,500 |
38,946 |
7.06 |
0.87 |
9.13 |
| 9/30/2010 |
22,000 |
21,304 |
7.35 |
1.00 |
7.25 |
| 12/31/2010 |
5,000 |
35,249 |
6.44 |
0.95 |
5.95 |
| 3/31/2011 |
-- |
21,555 |
5.79 |
1.23 |
5.15 |
For the quarters ended March 31, 2011, December 31, 2010 and
March 31, 2010, we sold loans with carrying value of $26.0 million
resulting in net proceeds of $27.9 million, $28.6 million resulting
in net proceeds of $23.8 million and $26.7 million resulting in net
proceeds of $25.2 million, respectively. At March 31, 2011, loans
held for sale totaled $47.6 million, an increase of $11.0 million,
or 30.1%, from $36.6 million at December 31, 2010 and an increase
of $37.5 million from $10.1 million at March 31, 2010. The
increases in loans held for sale reflected efforts to improve asset
quality through the disposition of problem assets. At March 31,
2011, loans with $50.7 million in recorded investment remained to
be sold at a carrying value of $47.6 million.
| Loans
Held for Sale |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| (Dollars in Thousands) |
3/31/2011 |
12/31/2010 |
$
Change |
%
Change |
3/31/2010 |
$
Change |
%
Change |
| Real Estate
Loans: |
|
|
|
|
|
|
|
| Commercial
Property |
|
|
|
|
|
|
|
| Retail |
295 |
-- |
295 |
|
-- |
295 |
|
| Land |
-- |
1,082 |
(1,082) |
-100% |
-- |
-- |
|
| Other |
3,217 |
1,177 |
2,040 |
173.3% |
-- |
3,217 |
|
| Construction |
-- |
1,406 |
(1,406) |
-100.0% |
-- |
-- |
|
| |
|
|
|
|
|
|
| Commercial
& Industrial Loans: |
|
|
|
|
|
|
| Commercial
Term |
|
|
-- |
|
|
|
|
| Unsecured |
65 |
|
65 |
|
170 |
(105) |
-61.8% |
| Secured by Real Estate |
24,979 |
14,893 |
10,086 |
67.7% |
4,514 |
20,465 |
453.4% |
|
SBA |
19,093 |
18,062 |
1,031 |
5.7% |
5,420 |
13,673 |
252.3% |
|
TOTAL |
47,649 |
36,620 |
11,029 |
30.1% |
10,104 |
37,545 |
371.6% |
Balance Sheet
Total assets decreased slightly at the end of the first quarter
of 2011 to $2.88 billion, from $2.91 billion at December 31, 2010,
and down 4.6% from $3.02 billion at March 31, 2010. Gross
loans, net of deferred loan fees, were $2.17 billion at March 31,
2011, down 4.1% from $2.27 billion at December 31, 2010, and down
19% from $2.68 billion at March 31, 2010.
Average gross loans decreased 19.2% to $2.23 billion for the
first quarter of 2011 from $2.77 billion for the like quarter a
year ago and declined 4.9% from $2.35 billion for the fourth
quarter of 2010. Loan balances reflect continued progress in
reducing the number of problem loans, along with relatively weak
loan demand due to challenging business and economic
conditions.
Hanmi's average investment securities portfolio more than
tripled to $473.1 million for the first quarter of 2011 from $125.3
million for the first quarter a year ago and increased 34.8% from
$351.0 million from the quarter ended December 31, 2010. Surplus
funds primarily generated from aggressive loan sales and the $120
million capital raise along with relatively weak loan demand
contributed to the increase in investment securities over the past
year. The securities portfolio contains mostly
high-quality short and mid-term investments that are selected
to provide a relatively stable source of interest income, while
maintaining strong liquidity. U.S. Government agency bonds,
mortgage backed securities and securities collateralized by
residential mortgages guaranteed by U.S. Government sponsored
entities account for 90% of the securities portfolio. In
anticipation of rising interest rates, management purchased
government-sponsored investment securities with short
durations.
Including secured off-balance sheet lines of credit, total
available liquidity to Hanmi was $1.1 billion at March 31, 2011,
representing 37.1% of total assets and 44% of total
deposits. "We believe our liquidity is more than sufficient to
meet the needs of our customers, "said Yoo. The Bank's increase in
investment securities also provides a balance of liquidity and
yield, and is a source of funding for future loan growth.
Average deposits also decreased 7.7% to $2.46 billion for the
first quarter of 2011 from $2.66 billion for the like quarter in
2010, and declined 2.2% from $2.51 billion for the first quarter of
2010. The deleveraging strategy employed last year focused on
reduction in promotional time deposits and reduced reliance on
non-retail deposits, including brokered time deposits and funds
raised from rate listing services.
The improvement in the deposit mix contributed to lower costs.
Transaction deposits, excluding time deposits, accounted for 47.7%
of total deposits, up from 43.1% in the prior quarter and 44.7% at
the end of the first quarter a year ago. There are no brokered
deposits in the deposit mix at quarter-end. Total deposits
decreased 8.3% year-over-year and declined 1.5% from the prior
quarter. While the quarter-over-quarter decline in total
deposits was mainly attributable to a $42.5 million, or 25%
decrease in time deposits raised from rate listing services, the
year-over-year decrease in total deposits was primarily due to a
$63.4 million decrease in brokered deposits. Total deposits
were $2.43 billion at March 31, 2011, compared to $2.47 billion at
December 31, 2010, and $2.65 billion at March 31, 2010.
Results of Operations
Net interest income, before the provision for credit losses,
totaled $26.1 million for the first quarter of 2011, which was up
0.5% from $26.0 million in the linked quarter and down 5% from
$27.3 million in the first quarter a year ago. Interest income
was down 2.1% in the quarter and 11% from a year ago, while
interest expense fell 10.1% in the quarter and 27.5% year-
over-year.
The average yield on the loan portfolio improved 13 basis points
to 5.61% from 5.48% from the prior quarter, and was up by 23 basis
points from 5.38% from the first quarter in 2010. The cost of
average interest-bearing deposits in the first quarter continued to
decrease to 1.44%, down 11 basis points from the prior quarter and
43 basis points from the first quarter of 2010. As a result,
Hanmi's net interest margin improved 18 basis points to 3.66% in
the first quarter of 2011 from 3.48% in the fourth quarter, due
mainly to improved yields on interest-earning assets and reduced
cost of funds, partially offset by a decline in interest-earning
assets. When compared to the first quarter of 2010, net
interest margin declined just 3 basis points from 3.69%, due
primarily to a decline in interest-earning assets, mainly offset by
lower cost of funds.
There was no provision for credit losses in the first quarter of
2011 compared to $5.0 million in the prior quarter and $58.0
million in the first quarter a year ago, due to steady declines in
classified assets, non-performing loans, and overall loan balance.
The provision for loan losses has decreased steadily for five
consecutive quarters.
Total non-interest income in the first quarter of 2011 was $5.5
million, down from $6.1 million in the fourth quarter of 2010 and
down from $7.0 million in the first quarter a year ago. The
year-over-year decrease in non-interest income is due to decreases
in service charges on deposit accounts and lower net gains on sales
of loans and securities. Service charges on deposit accounts
decreased to $3.1million for the first quarter of 2011 from $3.3
million in the linked quarter and $3.7 million for the first
quarter of 2010. The year-over-year decrease in service charges on
deposit accounts represented a decrease in NSF service charges due
to the continued underlying decline in activity as customers better
managed their account balances.. In the first quarter of 2011, we
recognized $2.2 million valuation adjustment on loans held for
sale, the majority of which was offset by $1.9 million gains from
the sales of loans held for sale. The net amount of $338,000 was
recorded as net loss on sales of loans. When compared to the first
quarter of 2011, we recognized $76,000 and $105,000 gains on the
sales of loans and securities in the prior quarter and the first
quarter a year ago, respectively.
Total non-interest expense decreased 3.1% in the quarter and
19.7% year-over-year to $21.1 million for the first quarter, down
from $21.7 million in the fourth quarter of 2010 and $26.2 million
for the first quarter a year ago. The notable year-over-year
improvement was primarily attributable to an 85.5% reduction in
OREO expenses as a result of lower losses and write-downs on
foreclosed properties.
Conference Call Information
Management will host a conference today at 1:30 p.m. PDT (4.30
p.m. EDT) to discuss these financial results. This call will
also be broadcast live via the internet. Investment
professionals and all others are invited to access the live call by
dialing or (617) 597-5474 for international callers at 1:30 p.m.
(PDT), using access code HANMI. To listen to the call online,
either live or archived, visit the Investor Relations page of Hanmi
Financial Corporation website at www.hanmi.com. Shortly after
the call concludes, the replay will also be available at (617)
801-6888 using access code #84796223, where it will be archived
until May 14, 2011.
About Hanmi Financial Corporation
Headquartered in Los Angeles, Hanmi Bank, a wholly-owned
subsidiary of Hanmi Financial Corporation, provides services to the
multi-ethnic communities of California, with 27 full-service
offices in Los Angeles, Orange, San Bernardino, San Francisco,
Santa Clara and San Diego counties, and a loan production office in
Washington State. Hanmi Bank specializes in commercial, SBA and
trade finance lending, and is a recognized community leader. Hanmi
Bank's mission is to provide a full range of quality products and
premier services to its customers and to maximize shareholder
value. 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, including our securities purchase agreement with
Woori Finance Holdings, 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: inability to consummate the proposed
transaction with Woori Finance Holdings on the terms contemplated
in the Securities Purchase Agreement entered into with Woori on
May 25, 2010, as amended (the "Transaction"); failure to
receive regulatory approval for the Transaction; inability to
continue as a going concern; inability to raise additional capital
on acceptable terms or at all; failure to maintain adequate levels
of capital and liquidity to support our operations; the effect of
regulatory orders we have entered into and 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 to receive regulatory
approval for Hanmi Bank to declare dividends to Hanmi Financial;
adequacy of our allowance for loan losses, credit quality and the
effect of credit quality on our provision for credit 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 successfully integrate acquisitions we
may make; 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
("SEC"), including, in particular Item 1A of our Form 10K for the
year ended December 31, 2010, as well as current and periodic
reports filed with the U.S. Securities and Exchange Commission
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.
Cautionary Statements
Future issuance of any securities relating to the Woori
transaction has not been and will not be registered under the
Securities Act of 1933, as amended, or any state securities laws,
and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration
requirements of the Securities Act and applicable state securities
laws. This press release shall not constitute an offer to sell or
the solicitation of an offer to buy any securities, nor shall there
be any sale of securities in any jurisdiction or state in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction or state.
| HANMI FINANCIAL
CORPORATION AND SUBSIDIARIES |
|
|
|
|
| CONDENSED CONSOLIDATED
BALANCE SHEETS (UNAUDITED) |
|
|
|
| (Dollars in Thousands) |
|
|
|
|
|
| |
|
|
|
|
|
| |
March 31, |
December
31, |
% |
March 31, |
% |
| |
2011 |
2010 |
Change |
2010 |
Change |
| ASSETS |
|
|
|
|
|
| |
|
|
|
|
|
| Cash and Due from Banks |
$ 67,507 |
$ 60,983 |
10.7 % |
$ 59,677 |
13.1 % |
| Interest-Bearing Deposits in Other Banks |
83,354 |
158,737 |
(47.5)% |
139,540 |
(40.3)% |
| Federal Funds Sold |
19,500 |
30,000 |
(35.0)% |
-- |
-- |
| |
|
|
|
|
|
| Cash and Cash Equivalents |
170,361 |
249,720 |
(31.8)% |
199,217 |
(14.5)% |
| |
|
|
|
|
|
| Investment Securities |
539,194 |
413,963 |
30.3 % |
114,231 |
372.0 % |
| |
|
|
|
|
|
| Loans: |
|
|
|
|
|
| Gross Loans, Net of Deferred Loan
Fees |
2,173,415 |
2,267,126 |
(4.1)% |
2,682,890 |
(19.0)% |
| Allowance for Loan Losses |
(125,780) |
(146,059) |
(13.9)% |
(177,820) |
(29.3)% |
| |
|
|
|
|
|
| Loans Receivable, Net |
2,047,635 |
2,121,067 |
(3.5)% |
2,505,070 |
(18.3)% |
| |
|
|
|
|
|
| Accrued Interest Receivable |
8,796 |
8,048 |
9.3 % |
9,026 |
(2.5)% |
| Premises and Equipment, Net |
17,165 |
17,599 |
(2.5)% |
18,236 |
(5.9)% |
| Other Real Estate Owned, Net |
2,642 |
4,089 |
(35.4)% |
22,399 |
(88.2)% |
| Due from Customers on Acceptances |
805 |
711 |
13.2 % |
1,914 |
(57.9)% |
| Servicing Assets |
2,698 |
2,890 |
(6.6)% |
3,590 |
(24.8)% |
| Other Intangible Assets, Net |
2,015 |
2,233 |
(9.8)% |
3,055 |
(34.0)% |
| Investment in FHLB and FRB Stock, at
Cost |
33,649 |
34,731 |
(3.1)% |
38,575 |
(12.8)% |
| Bank-Owned Life Insurance |
27,581 |
27,350 |
0.8 % |
26,639 |
3.5 % |
| Income Taxes Receivable |
9,188 |
9,188 |
-- |
59,680 |
(84.6)% |
| Other Assets |
17,937 |
15,559 |
15.3 % |
16,669 |
7.6 % |
| |
|
|
|
|
|
| TOTAL ASSETS |
$ 2,879,666 |
$ 2,907,148 |
(0.9)% |
$ 3,018,301 |
(4.6)% |
| |
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
| |
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
| Deposits: |
|
|
|
|
|
| Noninterest-Bearing |
$ 576,733 |
$ 546,815 |
5.5 % |
$ 575,015 |
0.3 % |
| Interest-Bearing |
1,854,207 |
1,919,906 |
(3.4)% |
2,075,265 |
(10.7)% |
| |
|
|
|
|
|
| Total Deposits |
2,430,940 |
2,466,721 |
(1.5)% |
2,650,280 |
(8.3)% |
| |
|
|
|
|
|
| Accrued Interest Payable |
14,184 |
15,966 |
(11.2)% |
13,146 |
7.9 % |
| Bank Acceptances Outstanding |
805 |
711 |
13.2 % |
1,914 |
(57.9)% |
| Federal Home Loan Bank Advances |
153,565 |
153,650 |
(0.1)% |
153,898 |
(0.2)% |
| Other Borrowings |
1,386 |
1,570 |
(11.7)% |
4,428 |
(68.7)% |
| Junior Subordinated Debentures |
82,406 |
82,406 |
-- |
82,406 |
-- |
| Accrued Expenses and Other
Liabilities |
12,329 |
12,868 |
(4.2)% |
11,207 |
10.0 % |
| |
|
|
|
|
|
| Total Liabilities |
2,695,615 |
2,733,892 |
(1.4)% |
2,917,279 |
(7.6)% |
| |
|
|
|
|
|
| Stockholders' Equity |
184,051 |
173,256 |
6.2 % |
101,022 |
82.2 % |
| |
|
|
|
|
|
| TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY |
$ 2,879,666 |
$ 2,907,148 |
(0.9)% |
$ 3,018,301 |
(4.6)% |
| |
|
|
| |
|
|
| HANMI FINANCIAL
CORPORATION AND SUBSIDIARIES |
|
|
| CONSOLIDATED STATEMENTS
OF OPERATIONS (UNAUDITED) |
|
| (Dollars in Thousands, Except Per
Share Data) |
|
|
|
| |
Three
Months Ended |
| |
Mar 31, |
Dec 31, |
% |
March 31, |
% |
| |
2011 |
2010 |
Change |
2010 |
Change |
| INTEREST AND DIVIDEND
INCOME: |
|
|
|
|
| Interest and Fees on Loans |
$ 30,905 |
$ 32,466 |
(4.8)% |
$ 36,695 |
(15.8)% |
| Taxable Interest on Investment
Securities |
2,673 |
1,839 |
45.4 % |
1,070 |
149.8 % |
| Tax-Exempt Interest on Investment
Securities |
40 |
9 |
344.4 % |
77 |
(48.1)% |
| Dividends on FRB and FHLB Stock |
133 |
135 |
(1.5)% |
139 |
(4.3)% |
| Interest on Interest-Bearing Deposits in
Other Banks |
89 |
149 |
(40.3)% |
55 |
61.8 % |
| Interest on Federal Funds Sold |
35 |
15 |
133.3 % |
17 |
105.9 % |
| Total Interest and Dividend Income |
33,875 |
34,613 |
(2.1)% |
38,053 |
(11.0)% |
| INTEREST EXPENSE: |
|
|
|
|
|
| Interest on Deposits |
6,735 |
7,592 |
(11.3)% |
9,704 |
(30.6)% |
| Interest on Junior Subordinated
Debentures |
698 |
711 |
(1.8)% |
669 |
4.3 % |
| Interest on Federal Home Loan Bank
Advances |
333 |
339 |
(1.8)% |
346 |
(3.8)% |
| Total Interest Expense |
7,766 |
8,642 |
(10.1)% |
10,719 |
(27.5)% |
| NET INTEREST INCOME BEFORE PROVISION FOR
CREDIT LOSSES |
26,109 |
25,971 |
0.5 % |
27,334 |
(4.5)% |
| Provision for Credit Losses |
-- |
5,000 |
(100.0)% |
57,996 |
(100.0)% |
| NET INTEREST INCOME (LOSS) AFTER PROVISION
FOR CREDIT LOSSES |
26,109 |
20,971 |
24.5 % |
(30,662) |
(185.2)% |
| NON-INTEREST INCOME: |
|
|
|
|
| Service Charges on Deposit Accounts |
3,141 |
3,279 |
(4.2)% |
3,726 |
(15.7)% |
| Insurance Commissions |
1,260 |
1,122 |
12.3 % |
1,278 |
(1.4)% |
| Remittance Fees |
462 |
499 |
(7.4)% |
462 |
-- |
| Trade Finance Fees |
297 |
379 |
(21.6)% |
351 |
(15.4)% |
| Other Service Charges and Fees |
333 |
323 |
3.1 % |
412 |
(19.2)% |
| Bank-Owned Life Insurance Income |
230 |
239 |
(3.8)% |
231 |
(0.4)% |
| Net Gain on Sales of Investment
Securities |
-- |
5 |
(100.0)% |
105 |
(100.0)% |
| Net Gain (Loss) on Sales of Loans |
(338) |
71 |
(576.1)% |
-- |
-- |
| Other Operating Income (Loss) |
123 |
136 |
(9.6)% |
440 |
(72.0)% |
| Total Non-Interest Income |
5,508 |
6,053 |
(9.0)% |
7,005 |
(21.4)% |
| NON-INTEREST EXPENSE: |
|
|
|
|
| Salaries and Employee Benefits |
9,124 |
9,381 |
(2.7)% |
8,786 |
3.8 % |
| Occupancy and Equipment |
2,565 |
2,672 |
(4.0)% |
2,725 |
(5.9)% |
| Deposit Insurance Premiums and Regulatory
Assessments |
2,070 |
2,204 |
(6.1)% |
2,224 |
(6.9)% |
| Data Processing |
1,399 |
1,499 |
(6.7)% |
1,499 |
(6.7)% |
| Other Real Estate Owned Expense |
829 |
681 |
21.7 % |
5,700 |
(85.5)% |
| Professional Fees |
789 |
680 |
16.0 % |
1,066 |
(26.0)% |
| Directors and Officers Liability
Insurance |
734 |
716 |
2.5 % |
716 |
2.5 % |
| Other Operating Expenses |
3,551 |
3,902 |
(9.0)% |
3,508 |
1.2 % |
| Total Non-Interest Expense |
21,061 |
21,735 |
(3.1)% |
26,224 |
(19.7)% |
| INCOME (LOSS) BEFORE PROVISION (BENEFIT) FOR
INCOME TAXES |
10,556 |
5,289 |
99.6 % |
(49,881) |
(121.2)% |
| Provision (Benefit) for Income Taxes |
119 |
(23) |
(617.4)% |
(395) |
(130.1)% |
| NET INCOME (LOSS) |
$ 10,437 |
$ 5,312 |
96.5 % |
$ (49,486) |
(121.1)% |
| |
|
|
|
|
| EARNINGS (LOSS) PER
SHARE: |
|
|
|
|
| Basic |
$ 0.07 |
$ 0.04 |
75.0 % |
$ (0.97) |
(107.2)% |
| Diluted |
$ 0.07 |
$ 0.04 |
75.0 % |
$ (0.97) |
(107.2)% |
| WEIGHTED-AVERAGE SHARES
OUTSTANDING: |
|
|
|
| Basic |
151,061,012 |
151,051,903 |
|
50,998,990 |
|
| Diluted |
151,287,573 |
151,197,503 |
|
50,998,990 |
|
| SHARES OUTSTANDING AT
PERIOD-END |
151,258,390 |
151,198,390 |
|
51,182,390 |
|
| |
|
|
| |
|
|
| HANMI FINANCIAL
CORPORATION AND SUBSIDIARIES |
|
|
| SELECTED FINANCIAL
DATA (UNAUDITED) |
|
|
|
| (Dollars in Thousands) |
|
|
|
|
|
| |
Three
Months Ended |
| |
March 31, |
December
31, |
% |
March 31, |
% |
| |
2011 |
2010 |
Change |
2010 |
Change |
| AVERAGE BALANCES: |
|
|
|
|
|
| Average Gross Loans, Net of Deferred Loan
Fees |
$ 2,234,110 |
$ 2,349,660 |
(4.9)% |
$ 2,765,701 |
(19.20)% |
| Average Investment Securities |
473,113 |
350,954 |
34.8 % |
125,340 |
277.5 % |
| Average Interest-Earning Assets |
2,892,404 |
2,961,297 |
(2.3)% |
3,010,938 |
(3.90)% |
| Average Total Assets |
2,906,253 |
2,949,647 |
(1.5)% |
3,086,198 |
(5.8)% |
| Average Deposits |
2,458,836 |
2,512,893 |
(2.2)% |
2,662,960 |
(7.7)% |
| Average Borrowings |
237,452 |
237,702 |
(0.1)% |
257,132 |
(7.7)% |
| Average Interest-Bearing Liabilities |
2,133,097 |
2,186,920 |
(2.5)% |
2,360,992 |
(9.70)% |
| Average Stockholders' Equity |
178,221 |
166,752 |
6.9 % |
137,931 |
29.2 % |
| |
|
|
|
|
| PERFORMANCE RATIOS
(Annualized): |
|
|
|
|
| Return on Average Assets |
1.46% |
0.71% |
|
(6.50)% |
|
| Return on Average Stockholders'
Equity |
23.75% |
12.64% |
|
(145.50)% |
|
| Efficiency Ratio |
66.61% |
67.87% |
|
76.37% |
|
| Net Interest Spread (1) |
3.27% |
3.07% |
|
3.29% |
|
| Net Interest Margin (1) |
3.66% |
3.48% |
|
3.69% |
|
| |
|
|
|
|
| ALLOWANCE FOR LOAN
LOSSES: |
|
|
|
|
| Balance at Beginning of Period |
$ 146,059 |
$ 176,063 |
(17.0)% |
$ 144,996 |
0.7 % |
| Provision Charged to Operating
Expense |
1,276 |
5,245 |
(75.7)% |
59,217 |
(97.8)% |
| Charge-Offs, Net of Recoveries |
(21,555) |
(35,249) |
(38.8)% |
(26,393) |
(18.3)% |
| Balance at End of Period |
$ 125,780 |
$ 146,059 |
(13.9)% |
$ 177,820 |
(29.3)% |
| |
|
|
|
|
|
| Allowance for Loan Losses to Total Gross
Loans |
5.79% |
6.44% |
|
6.63% |
|
| Allowance for Loan Losses to Total
Non-Performing Loans |
82.90% |
86.41% |
|
67.81% |
|
| |
|
|
|
| ALLOWANCE FOR OFF-BALANCE
SHEET ITEMS: |
|
|
|
| Balance at Beginning of Period |
$ 3,417 |
$ 3,662 |
(6.7)% |
$ 3,876 |
(11.8)% |
| Provision Charged to Operating
Expense |
(1,276) |
(245) |
420.8 % |
(1,221) |
(134.5)% |
| Balance at End of Period |
$ 2,141 |
$ 3,417 |
(37.3)% |
$ 2,655 |
(19.4)% |
| |
| (1) Amounts calculated on a
fully taxable equivalent basis using the current statutory federal
tax rate. |
| |
|
|
| |
|
|
| HANMI FINANCIAL
CORPORATION AND SUBSIDIARIES |
|
|
| SELECTED FINANCIAL
DATA (UNAUDITED) (Continued) |
|
|
| (Dollars in Thousands) |
|
|
|
|
|
| |
|
|
|
|
|
| |
March 31, |
December
31, |
% |
March 31, |
% |
| |
2011 |
2010 |
Change |
2010 |
Change |
| NON-PERFORMING
ASSETS: |
|
|
|
|
| Non-Accrual Loans |
$ 151,730 |
$ 169,028 |
(10.2)% |
$ 262,232 |
(42.1)% |
| Loans 90 Days or More Past Due and Still
Accruing |
-- |
-- |
-- |
-- |
-- |
| Total Non-Performing Loans (2) |
151,730 |
169,028 |
(10.2)% |
262,232 |
(42.1)% |
| Other Real Estate Owned, Net |
2,642 |
4,089 |
(35.4)% |
22,399 |
(88.2)% |
| Total Non-Performing Assets |
$ 154,372 |
$ 173,117 |
(10.8)% |
$ 284,631 |
(45.8)% |
| Total Non-Performing Loans/Total Gross
Loans |
6.98% |
7.45% |
|
9.77% |
|
| Total Non-Performing Assets/Total
Assets |
5.36% |
5.95% |
|
9.43% |
|
| Total Non-Performing Assets/Allowance for
Loan Losses |
122.7% |
118.5% |
|
160.1% |
|
| |
|
|
|
|
|
| DELINQUENT LOANS (Accrual
Status) (3) |
$ 20,711 |
$ 21,457 |
(3.5)% |
$ 68,640 |
(69.8)% |
| |
|
|
|
|
|
| Delinquent Loans (Accrual Status)/Total
Gross Loans |
0.95% |
0.95% |
|
2.56% |
|
| |
|
|
|
|
|
| LOAN PORTFOLIO: |
|
|
|
|
|
| Real Estate Loans |
$ 815,928 |
$ 856,527 |
(4.7)% |
$ 986,417 |
(17.3)% |
| Commercial and Industrial Loans (4) |
1,309,644 |
1,360,865 |
(3.8)% |
1,638,550 |
(20.1)% |
| Consumer Loans |
48,120 |
50,300 |
(4.3)% |
58,886 |
(18.3)% |
| Total Gross Loans |
2,173,692 |
2,267,692 |
(4.1)% |
2,683,853 |
(19.0)% |
| Deferred Loan Fees |
(277) |
(566) |
(51.1)% |
(963) |
(71.2)% |
| Gross Loans, Net of Deferred Loan
Fees |
2,173,415 |
2,267,126 |
(4.1)% |
2,682,890 |
(19.0)% |
| Allowance for Loan Losses |
(125,780) |
(146,059) |
(13.9)% |
(177,820) |
(29.3)% |
| Loans Receivable, Net |
$ 2,047,635 |
$ 2,121,067 |
(3.5)% |
$ 2,505,070 |
(18.3)% |
| |
|
|
|
|
|
| LOAN MIX: |
|
|
|
|
|
| Real Estate Loans |
37.5% |
37.8% |
|
36.8% |
|
| Commercial and Industrial Loans |
60.2% |
60.0% |
|
61.1% |
|
| Consumer Loans |
2.3% |
2.2% |
|
2.1% |
|
| Total Gross Loans |
100.0% |
100.0% |
|
100.0% |
|
| |
|
|
|
|
|
| DEPOSIT PORTFOLIO: |
|
|
|
|
|
| Demand - Noninterest-Bearing |
$ 576,733 |
$ 546,815 |
5.5 % |
$ 575,015 |
0.3 % |
| Savings |
113,513 |
113,968 |
(0.4)% |
121,041 |
(6.2)% |
| Money Market Checking and NOW
Accounts |
469,377 |
402,481 |
16.6 % |
488,366 |
(3.9)% |
| Time Deposits of $100,000 or More |
977,738 |
1,118,621 |
(12.6)% |
1,048,688 |
(6.8)% |
| Other Time Deposits |
293,579 |
284,836 |
3.1 % |
417,170 |
(29.6)% |
| Total Deposits |
$ 2,430,940 |
$ 2,466,721 |
(1.5)% |
$ 2,650,280 |
(8.3)% |
| |
|
|
|
|
|
| DEPOSIT MIX: |
|
|
|
|
|
| Demand - Noninterest-Bearing |
23.7% |
22.2% |
|
21.7% |
|
| Savings |
4.7% |
4.6% |
|
4.6% |
|
| Money Market Checking and NOW
Accounts |
19.3% |
16.3% |
|
18.4% |
|
| Time Deposits of $100,000 or More |
40.2% |
45.3% |
|
39.6% |
|
| Other Time Deposits |
12.1% |
11.6% |
|
15.7% |
|
| Total Deposits |
100.0% |
100.0% |
|
100.0% |
|
| |
|
|
|
|
| CAPITAL RATIOS (Bank
Only): |
|
|
|
|
| Total Risk-Based |
13.00% |
12.22% |
|
7.81% |
|
| Tier 1 Risk-Based |
11.70% |
10.91% |
|
6.49% |
|
| Tier 1 Leverage |
9.08% |
8.55% |
|
5.68% |
|
| |
| (2) Include loans held for
sale of $20.9 million, $26.6 million and $5.5 million as of
March 31, 2011, December 31, 2010, and March 31, 2010,
respectively. |
| (3) Include loans which are
30 to 89 days delinquent and loans held for sale of $6.9 million as
of March 31, 2011. |
| (4) Commercial and
industrial loans include owner-occupied property loans of $864.7
million, $894.8 million and $1.08 billion as of March 31,
2011, December 31, 2010, and March 31, 2010,
respectively. |
| |
|
|
|
|
|
| HANMI FINANCIAL
CORPORATION AND SUBSIDIARIES |
|
|
| AVERAGE BALANCES, AVERAGE
YIELDS EARNED AND AVERAGE RATES PAID (UNAUDITED) |
| (Dollars in Thousands) |
|
|
|
| |
|
|
|
| |
Three
Months Ended |
| |
March 31,
2011 |
| |
Average
Balance |
Interest Income/
Expense |
Average Yield/
Rate |
| INTEREST-EARNING
ASSETS |
|
|
|
| |
|
|
|
| Loans: |
|
|
|
| Real Estate Loans: |
|
|
|
| Commercial Property |
$ 721,933 |
$ 9,611 |
5.40% |
| Construction |
60,221 |
508 |
3.42% |
| Residential Property |
60,978 |
683 |
4.54% |
| Total Real Estate Loans |
843,132 |
10,802 |
5.20% |
| Commercial and Industrial Loans (1) |
1,342,271 |
19,392 |
5.86% |
| Consumer Loans |
49,167 |
582 |
4.80% |
| Total Gross Loans |
2,234,570 |
30,776 |
5.59% |
| Prepayment Penalty Income |
-- |
129 |
-- |
| Unearned Income on Loans, Net of
Costs |
(460) |
-- |
-- |
| Gross Loans, Net |
2,234,110 |
30,905 |
5.61% |
| |
|
|
|
| Investment Securities: |
|
|
|
| Municipal Bonds - Taxable |
17,531 |
178 |
4.06% |
| Municipal Bonds -Nontaxable (2) |
4,466 |
62 |
5.55% |
| U.S. Government Agency Securities |
146,312 |
623 |
1.70% |
| Mortgage-Backed Securities |
114,830 |
639 |
2.23% |
| Collateralized Mortgage Obligations |
156,583 |
977 |
2.50% |
| Corporate Bonds |
20,205 |
167 |
3.31% |
| Other Securities |
13,186 |
89 |
2.70% |
| Total Investment
Securities (2) |
473,113 |
2,735 |
2.31% |
| |
|
|
| Other Interest-Earning
Assets: |
|
|
| Equity Securities |
35,557 |
132 |
1.48% |
| Federal Funds Sold |
6,699 |
8 |
0.48% |
| Term Federal Funds Sold |
19,778 |
27 |
0.55% |
| Interest-Bearing Deposits in Other
Banks |
123,147 |
89 |
0.29% |
| Total Other Interest-Earning
Assets |
185,181 |
256 |
0.55% |
| |
|
|
|
| TOTAL INTEREST-EARNING
ASSETS (2) |
$ 2,892,404 |
$ 33,896 |
4.75% |
| |
|
|
|
| INTEREST-BEARING
LIABILITIES |
|
|
|
| |
|
|
|
| Interest-Bearing
Deposits: |
|
|
|
| Savings |
$ 113,080 |
$ 749 |
2.69% |
| Money Market Checking and NOW
Accounts |
448,807 |
1,002 |
0.91% |
| Time Deposits of $100,000 or
More |
1,051,340 |
4,059 |
1.57% |
| Other Time Deposits |
282,418 |
925 |
1.33% |
| Total Interest-Bearing
Deposits |
1,895,645 |
6,735 |
1.44% |
| |
|
|
|
| Borrowings: |
|
|
|
| FHLB Advances |
153,609 |
333 |
0.88% |
| Other Borrowings |
1,437 |
-- |
-- |
| Junior Subordinated Debentures |
82,406 |
698 |
3.44% |
| Total Borrowings |
237,452 |
1,031 |
1.76% |
| |
|
|
|
| TOTAL INTEREST-BEARING
LIABILITIES |
$ 2,133,097 |
$ 7,766 |
1.48% |
| |
|
|
| NET INTEREST
INCOME (2) |
$ 26,130 |
|
| |
|
|
| NET INTEREST
SPREAD (2) |
|
3.27% |
| |
|
|
| NET INTEREST
MARGIN (2) |
|
3.66% |
| |
|
|
| (1) Commercial and industrial
loans include owner-occupied commercial real etate loans |
|
|
| (2) Amounts calculated on a fully
taxable equivalent basis using the current statutory federal tax
rate. |
|
| |
|
| |
|
| HANMI FINANCIAL
CORPORATION AND SUBSIDIARIES |
|
| AVERAGE BALANCES, AVERAGE
YIELDS EARNED AND AVERAGE RATES PAID (UNAUDITED) |
| (Dollars in Thousands) |
|
|
|
| |
|
|
|
| |
Three Months
Ended |
| |
December 31,
2010 |
| |
Average
Balance |
Interest Income/
Expense |
Average Yield/
Rate |
| INTEREST-EARNING
ASSETS |
|
|
|
| |
|
|
|
| Loans: |
|
|
|
| Real Estate Loans: |
|
|
|
| Commercial Property |
$ 746,868 |
$ 10,144 |
5.39% |
| Construction |
66,221 |
416 |
2.49% |
| Residential Property |
63,716 |
747 |
4.65% |
| Total Real Estate Loans |
876,805 |
11,307 |
5.12% |
| Commercial and Industrial Loans
(1) |
1,421,369 |
20,435 |
5.70% |
| Consumer Loans |
52,251 |
660 |
5.01% |
| Total Gross Loans |
2,350,425 |
32,402 |
5.47% |
| Prepayment Penalty Income |
-- |
64 |
-- |
| Unearned Income on Loans, Net of
Costs |
(765) |
-- |
-- |
| Gross Loans,
Net |
2,349,660 |
32,466 |
5.48% |
| |
|
|
|
| Investment Securities: |
|
|
|
| Municipal Bonds -
Taxable |
14,860 |
189 |
5.09% |
| Municipal Bonds -Nontaxable
(2) |
6,322 |
14 |
0.89% |
| U.S. Government Agency
Securities |
84,904 |
389 |
1.83% |
| Mortgage-Backed Securities |
107,764 |
467 |
1.73% |
| Collateralized Mortgage
Obligations |
108,491 |
550 |
2.03% |
| Corporate Bonds |
16,151 |
135 |
3.34% |
| Other Securities |
12,462 |
110 |
3.53% |
| Total Investment
Securities (2) |
350,954 |
1,854 |
2.11% |
| |
|
|
|
| Other Interest-Earning
Assets: |
|
|
|
| Equity Securities |
35,883 |
135 |
1.50% |
| Federal Funds Sold |
8,239 |
11 |
0.53% |
| Term Federal Funds Sold |
3,043 |
4 |
0.53% |
| Interest-Bearing Deposits in Other
Banks |
213,518 |
149 |
0.28% |
| Total Other
Interest-Earning Assets |
260,683 |
299 |
0.46% |
| |
|
|
|
| TOTAL INTEREST-EARNING
ASSETS (2) |
$ 2,961,297 |
$ 34,619 |
4.64% |
| |
|
|
|
| INTEREST-BEARING
LIABILITIES |
|
|
|
| |
|
|
|
| Interest-Bearing
Deposits: |
|
|
|
| Savings |
$ 116,220 |
$ 804 |
2.74% |
| Money Market Checking and NOW
Accounts |
414,773 |
1,003 |
0.96% |
| Time Deposits of $100,000 or
More |
1,127,027 |
4,736 |
1.67% |
| Other Time Deposits |
291,198 |
1,049 |
1.43% |
| Total Interest-Bearing
Deposits |
1,949,218 |
7,592 |
1.55% |
| |
|
|
|
| Borrowings: |
|
|
|
| FHLB Advances |
153,693 |
339 |
0.88% |
| Other Borrowings |
1,603 |
-- |
-- |
| Junior Subordinated Debentures |
82,406 |
711 |
3.42% |
| Total
Borrowings |
237,702 |
1,050 |
1.75% |
| |
|
|
|
| TOTAL INTEREST-BEARING
LIABILITIES |
$ 2,186,920 |
$ 8,642 |
1.57% |
| |
|
|
|
| NET INTEREST
INCOME (2) |
|
$ 25,977 |
|
| |
|
|
|
| NET INTEREST
SPREAD (2) |
|
|
3.07% |
| |
|
|
|
| NET INTEREST
MARGIN (2) |
|
|
3.48% |
| |
|
|
|
| (1) Commercial and industrial loans include
owner-occupied commercial real etate loans |
|
|
|
| (2) Amounts calculated on a fully taxable
equivalent basis using the current statutory federal tax rate. |
|
|
|
| |
|
|
|
| |
|
|
|
| HANMI FINANCIAL CORPORATION AND
SUBSIDIARIES |
|
|
|
| AVERAGE BALANCES, AVERAGE YIELDS
EARNED AND AVERAGE RATES PAID (UNAUDITED) |
|
|
|
| (Dollars in Thousands) |
|
|
|
| |
|
|
|
| |
Three Months
Ended |
| |
March 31,
2010 |
| |
Average
Balance |
Interest Income/
Expense |
Average Yield/
Rate |
| INTEREST-EARNING
ASSETS |
|
|
|
| |
|
|
|
| Loans: |
|
|
|
| Real Estate Loans: |
|
|
|
| Commercial Property |
$ 836,147 |
$ 11,374 |
5.52% |
| Construction |
113,115 |
1,394 |
5.00% |
| Residential Property |
74,077 |
783 |
4.29% |
| Total Real Estate Loans |
1,023,339 |
13,551 |
5.37% |
| Commercial and Industrial Loans (1) |
1,682,429 |
22,235 |
5.36% |
| Consumer Loans |
61,197 |
849 |
5.63% |
| Total Gross Loans |
2,766,965 |
36,635 |
5.37% |
| Prepayment Penalty Income |
-- |
60 |
-- |
| Unearned Income on Loans, Net of
Costs |
(1,264) |
-- |
-- |
| Gross Loans, Net |
2,765,701 |
36,695 |
5.38% |
| |
|
|
|
| Investment Securities: |
|
|
|
| Municipal Bonds - Taxable |
-- |
-- |
-- |
| Municipal Bonds -Nontaxable (2) |
7,549 |
118 |
6.25% |
| U.S. Government Agency Securities |
32,120 |
383 |
4.77% |
| Mortgage-Backed Securities |
61,920 |
490 |
3.17% |
| Collateralized Mortgage Obligations |
11,382 |
113 |
3.97% |
| Corporate Bonds |
-- |
-- |
-- |
| Other Securities |
12,369 |
98 |
3.17% |
| Total Investment
Securities (2) |
125,340 |
1,202 |
3.84% |
| |
|
|
|
| Other Interest-Earning
Assets: |
|
|
|
| Equity Securities |
39,369 |
125 |
1.27% |
| Federal Funds Sold |
14,118 |
17 |
0.48% |
| Term Federal Funds Sold |
-- |
-- |
-- |
| Interest-Bearing Deposits in Other
Banks |
66,410 |
55 |
0.33% |
| Total Other Interest-Earning
Assets |
119,897 |
197 |
0.66% |
| |
|
|
|
| TOTAL INTEREST-EARNING
ASSETS (2) |
$ 3,010,938 |
$ 38,094 |
5.13% |
| |
|
|
|
| INTEREST-BEARING
LIABILITIES |
|
|
|
| |
|
|
|
| Interest-Bearing
Deposits: |
|
|
|
| Savings |
$ 115,625 |
$ 824 |
2.89% |
| Money Market Checking and NOW
Accounts |
558,916 |
1,622 |
1.18% |
| Time Deposits of $100,000 or
More |
924,055 |
4,677 |
2.05% |
| Other Time Deposits |
505,264 |
2,581 |
2.07% |
| Total Interest-Bearing
Deposits |
2,103,860 |
9,704 |
1.87% |
| |
|
|
|
| Borrowings: |
|
|
|
| FHLB Advances |
173,062 |
346 |
0.81% |
| Other Borrowings |
1,664 |
-- |
-- |
| Junior Subordinated Debentures |
82,406 |
669 |
3.29% |
| Total Borrowings |
257,132 |
1,015 |
1.60% |
| |
|
|
|
| TOTAL INTEREST-BEARING
LIABILITIES |
$ 2,360,992 |
$ 10,719 |
1.84% |
| |
|
|
|
| NET INTEREST
INCOME (2) |
|
$ 27,375 |
|
| |
|
|
|
| NET INTEREST
SPREAD (2) |
|
|
3.29% |
| |
|
|
|
| NET INTEREST
MARGIN (2) |
|
|
3.69% |
| |
| (1) Commercial and
industrial loans include owner-occupied commercial real etate
loans |
| (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 Bank and Hanmi Financial's capital strength.
Tangible equity is calculated by subtracting goodwill and other
intangible assets from total stockholders' equity. Banking and
financial institution regulators also exclude goodwill and other
intangible assets from total 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 Bank and Hanmi Financial. 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:
| HANMI BANK |
| NON-GAAP FINANCIAL
MEASURES (UNAUDITED) |
| (Dollars in Thousands) |
| |
|
|
|
| |
March 31, |
December
31, |
March 31, |
| |
2011 |
2010 |
2010 |
| |
|
|
|
| TANGIBLE COMMON EQUITY TO TANGIBLE
ASSETS RATIO |
|
|
|
| |
|
|
|
| Total Assets |
$ 2,872,804 |
$ 2,900,415 |
$ 3,011,524 |
| Less Other Intangible Assets |
(303) |
(450) |
(1,058) |
| Tangible Assets |
$ 2,872,501 |
$ 2,899,965 |
$ 3,010,466 |
| |
|
|
|
| Total Stockholders' Equity |
$ 261,639 |
$ 249,637 |
$ 178,513 |
| Less Other Intangible Assets |
(303) |
(450) |
(1,058) |
| Tangible Stockholders' Equity |
$ 261,336 |
$ 249,187 |
$ 177,455 |
| |
|
|
|
| Total Stockholders' Equity to Total
Assets Ratio |
9.11% |
8.61% |
5.93% |
| Tangible Common Equity to Tangible
Assets Ratio |
9.10% |
8.59% |
5.89% |
| |
| |
| HANMI FINANCIAL
CORPORATION AND SUBSIDIARIES |
| NON-GAAP FINANCIAL
MEASURES (UNAUDITED) |
| (Dollars in Thousands) |
| |
|
|
|
| |
March 31, |
December
31, |
March 31, |
| |
2011 |
2010 |
2010 |
| |
|
|
|
| TANGIBLE COMMON EQUITY TO TANGIBLE
ASSETS RATIO |
|
| |
|
|
|
| Total Assets |
$ 2,879,666 |
$ 2,907,148 |
$ 3,018,301 |
| Less Other Intangible Assets |
(2,015) |
(2,233) |
(3,055) |
| Tangible Assets |
$ 2,877,651 |
$ 2,904,915 |
$ 3,015,246 |
| |
|
|
|
| Total Stockholders' Equity |
$ 184,051 |
$ 173,256 |
$ 101,022 |
| Less Other Intangible Assets |
(2,015) |
(2,233) |
(3,055) |
| Tangible Stockholders' Equity |
$ 182,036 |
$ 171,023 |
$ 97,967 |
| |
|
|
|
| Total Stockholders' Equity to Total
Assets Ratio |
6.39% |
5.96% |
3.35% |
| Tangible Common Equity to Tangible
Assets Ratio |
6.33% |
5.89% |
3.25% |
CONTACT: Hanmi Financial Corporation
DAVID YANG
Investor Relations Officer
(213) 637-4798
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