Hanmi Financial Corporation (Nasdaq:HAFC), the holding company for
Hanmi Bank (the "Bank"), today reported net income of $14.0
million, or $0.44 per diluted share, for the fourth quarter of
2012, up 5.3% from $13.3 million, or $0.42 per diluted share, for
the third quarter of 2012, and more than double the earnings of
$5.5 million, or $0.22 per diluted share, for the fourth quarter of
2011. For the year ended December 31, 2012, net income totaled
$90.4 million, or $2.87 per diluted share, compared to $28.1
million, or $1.38 per diluted share, for the year ended December
31, 2011. Hanmi continued to benefit from a reversal of the
deferred tax asset ("DTA") valuation allowance, recording a $5.5
million gross benefit which effectively offsets the tax obligation
for the quarter. For the full year, the reversal of the DTA
valuation allowance contributed a net benefit of $47.4 million,
adding $1.50 per share to earnings on a fully taxed basis. Tangible
book value increased 3.9% to $11.97 per share at December 31, 2012,
from $11.52 per share at September 30, 2012, and increased 32.7%
from $9.02 per share at December 31, 2011.
"During the fourth quarter of 2012, we celebrated two major
milestones: the Bank's thirty-year anniversary and the lifting of
regulatory enforcement actions by the Federal Reserve Bank of San
Francisco and the California Department of Financial Institutions.
We are no longer constrained by any of our former enforcement
agreements, which allows us to focus on pursuing important
strategic options. Earlier this month, we announced that we are
exploring strategic alternatives for a possible business
combination, merger or sale transaction. This process reflects our
proactive efforts to stay ahead of the competition in an
increasingly competitive market. We believe that exploring
strategic options is an important step necessary for our future.
However, there is no assurance that we will complete a strategic
transaction." said Jay S. Yoo, President and Chief Executive
Officer.
Hanmi Financial Quarterly Financial
Highlights |
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(In Thousands, Except Per Share Data) |
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At or for
the Three Months Ended |
|
December 31, |
September 30, |
December 31, |
|
2012 |
2012 |
2011 |
|
|
|
|
Net Income |
$ 13,979 |
$ 13,279 |
$ 5,506 |
Net Income Per Diluted Common Share |
$ 0.44 |
$ 0.42 |
$ 0.22 |
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|
|
|
Total Assets |
$ 2,882,520 |
$ 2,841,857 |
$ 2,744,824 |
Total Net Loans |
$ 1,986,051 |
$ 1,892,813 |
$ 1,849,020 |
Total Deposits |
$ 2,395,963 |
$ 2,363,385 |
$ 2,344,910 |
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|
|
|
Return on Average Assets |
1.94% |
1.87% |
0.81% |
Return on Average Stockholders' Equity |
15.02% |
14.97% |
9.50% |
Net Interest Margin |
3.86% |
3.69% |
3.66% |
Efficiency Ratio |
57.66% |
59.81% |
69.03% |
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Tangible Common Equity Per Common Share |
$ 11.97 |
$ 11.52 |
$ 9.02 |
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Non-Performing Assets |
$ 38,053 |
$ 45,056 |
$ 52,558 |
Non-Performing Assets to Total Assets |
1.32% |
1.59% |
1.91% |
Allowance for Loan Losses to Total Gross
Loans |
3.09% |
3.38% |
4.64% |
Allowance for Loan Losses to Total
Non-Performing Loans |
169.81% |
147.92% |
171.71% |
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Classified Assets |
$ 101,172 |
$ 131,233 |
$ 282,559 |
Classified Assets to Bank Tier 1 Capital and
ALLL |
21.57% |
28.60% |
66.14% |
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Hanmi Financial Capital Ratios: |
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Total Risk-Based Capital Ratio |
20.65% |
20.79% |
18.66% |
Tier 1 Leverage Capital Ratio |
14.95% |
14.71% |
13.34% |
Tangible Equity to Tangible Assets
Ratio |
13.09% |
12.77% |
10.36% |
Financial Highlights (at or for the period
ended December 31, 2012)
- Net income for the fourth quarter of 2012 increased to $14.0
million, or $0.44 per diluted share, up 5.3% from $13.3 million, or
$0.42 per diluted share, in the third quarter of 2012. For the year
ended December 31, 2012, net income totaled $90.4 million, or $2.87
per diluted share, compared to $28.1 million, or $1.38 per diluted
share, for the year ended December 31, 2011. For the year ended
December 31, 2012, the reversal of the DTA valuation allowance
contributed a net of $47.4 million to net income and added $1.50
per share to earnings on a fully taxed basis.
- Net interest margin ("NIM") improved to 3.86% in the fourth
quarter of 2012, up from 3.69% in the third quarter of 2012 and
3.66% in the fourth quarter of 2011. Yields on earning assets
improved to 4.40% in the fourth quarter of 2012, up from 4.35% in
the third quarter of 2012, but down from 4.58% in the fourth
quarter of 2011. For the year ended December 31, 2012, NIM improved
to 3.77% from 3.68% for the year ended December 31, 2011. Cost of
deposits continued to improve to 0.56% in the fourth quarter of
2012, down from 0.61% in the third quarter of 2012 and 0.89% in the
fourth quarter of 2011.
- New loan production for the fourth quarter of 2012 totaled
$208.6 million, consisting of $44.2 million of SBA 504 and 7(a)
loans, $156.1 million of other commercial term loans, and $7.5
million of lines of credit disbursements. For the year ended
December 31, 2012, total loan production was $694.2 million,
consisting of $155.3 million of SBA 504 and 7(a) loans, $434.6
million of other commercial term loans, $20.6 million of lines of
credit disbursements, and purchases of $67.6 million of single
family residential mortgages in the first quarter of 2012 and $15.2
million of commercial real estate loans in the second quarter of
2012.
- Asset quality improved during the fourth quarter of 2012, as
indicated by lower levels of non-performing assets ("NPAs"),
delinquent loans, and net charge-offs.
- The ratio of classified assets to the Bank's tier 1 capital
plus the allowance for loan losses ("ALLL") dropped to 21.57% at
December 31, 2012, from 28.60% at September 30, 2012, and from
66.14% at December 31, 2011. Classified assets at December 31, 2012
were $101.2 million compared to $131.2 million and $282.6 million
at September 30, 2012 and December 31, 2011, respectively.
- NPAs declined to $38.1 million, or 1.32% of total assets, at
December 31, 2012, from $45.1 million, or 1.59% of total assets, at
September 30, 2012, and from $52.6 million, or 1.91% of total
assets, at December 31, 2011.
- Delinquent loans, which are 30 to 89 days past due and still
accruing, totaled $2.4 million, or 0.12% of gross loans at December
31, 2012, down from $4.0 million, or 0.20% of gross loans at
September 30, 2012, and down from $13.9 million, or 0.72% of gross
loans, at December 31, 2011.
- Total net charge-offs during the fourth quarter of 2012 were
$3.2 million, down from $5.9 million in the third quarter of 2012,
and down from $15.1 million in the fourth quarter of 2011.
- Classified loan inflows totaled $8.0 million for the fourth
quarter of 2012, down from $10.7 million during the third quarter
of 2012. Outflows of classified loans totaled $38.4 million during
the fourth quarter of 2012, as compared to $22.5 million in the
third quarter of 2012.
- Operating efficiency improved to 57.66% during the fourth
quarter of 2012 from 59.81% during the third quarter of 2012, and
from 69.03% during the fourth quarter of 2011, reflecting higher
revenues and lower overall costs of operations. For the year ended
December 31, 2012, the efficiency ratio improved to 61.07% from
67.22% for the year ended December 31, 2011.
- The Bank's tangible common equity to tangible assets ratio at
December 31, 2012 was 15.29%, up from 14.96% at September 30, 2012,
and up from 12.48% at December 31, 2011.
- At the holding company level, the tangible common equity ratio
was 13.09% and the tangible book value was $11.97 per share at
December 31, 2012, representing increases from tangible common
equity ratios of 12.77% and 10.36% and tangible book values of
$11.52 and $9.02 per share, at September 30, 2012 and December 31,
2011, respectively.
Capital Management
"Our capital position continues to be well above industry
averages, with our ratio of tangible equity to tangible assets at
13.09% at year end, compared to an average of 8.16% for the SNL
Bank and Thrift Index last quarter," said Mark Yoon, Senior Vice
President and Interim Chief Financial Officer.
|
Three
Months Ended |
|
December 31, |
September 30, |
December 31, |
|
2012 |
2012 |
2011 |
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Hanmi Financial |
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Total Risk-Based Capital Ratio |
20.65% |
20.79% |
18.66% |
Tier 1 Risk-Based Capital Ratio |
19.37% |
19.52% |
17.36% |
Tier 1 Leverage Capital Ratio |
14.95% |
14.71% |
13.34% |
Tangible Equity to Tangible Assets
Ratio |
13.09% |
12.77% |
10.36% |
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Hanmi Bank |
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Total Risk-Based Capital Ratio |
19.85% |
19.91% |
17.57% |
Tier 1 Risk-Based Capital Ratio |
18.58% |
18.63% |
16.28% |
Tier 1 Leverage Capital Ratio |
14.33% |
14.05% |
12.50% |
Tangible Equity to Tangible Assets
Ratio |
15.29% |
14.96% |
12.48% |
Results of Operations
Net interest income, before the provision for credit losses,
totaled $26.4 million for the fourth quarter of 2012, up 6.1% from
$24.9 million for the third quarter of 2012, and up 8.2% from $24.4
million for the fourth quarter of 2011. Interest and dividend
income increased 2.5% from the third quarter of 2012 but decreased
1.6% from the fourth quarter of 2011, while interest expense fell
17.3% and 40.3% compared to the third quarter of 2012 and the
fourth quarter of 2011, respectively. For the year ended December
31, 2012, net interest income, before the provision for credit
losses, totaled $101.1 million, down slightly from $101.2 million
for the year ended December 31, 2011.
Yield on loans was 5.38% for the fourth quarter of 2012, down
from 5.44% for the third quarter of 2012, and down from 5.55% for
the fourth quarter of 2011. Yield on investment securities,
accounting for 16.6% of current quarter average earning assets, was
2.29% for the fourth quarter of 2012, up from 2.22% for the third
quarter of 2012, and up from 2.00% for the fourth quarter of 2011.
For the year ended December 31, 2012, average yield on loans was
5.47%, down from 5.56% for the year ended December 31, 2011. The
yields on investment securities were the same 2.22% for both years
ended December 31, 2012 and 2011.
Cost of interest-bearing liabilities continues to decline,
reflecting the improving mix of the deposit base. Cost of
interest-bearing liabilities was 0.83% in the fourth quarter of
2012, down 18 basis points compared to the third quarter of 2012,
and down 53 basis points compared to the fourth quarter of 2011.
Cost of deposits was 0.56% for the fourth quarter of 2012, down
from 0.61% for the third quarter of 2012, and down from 0.89% for
the fourth quarter of 2011. For the year ended December 31, 2012,
cost of interest bearing liabilities declined 34 basis points to
1.07% and cost of deposits declined 32 basis points to 0.68%,
compared to 1.41% and 1.00%, respectively, for the year ended
December 31, 2011.
Net interest margin improved to 3.86% in the fourth quarter of
2012, up 17 basis points compared to the third quarter of 2012, and
up 20 basis points compared to the fourth quarter of 2011. "With
improvement in the production of new loans, we are starting to grow
our loan portfolio and deploy excess liquidity into higher yielding
assets," said Yoon.
With steadily improving asset quality, there was no provision
for credit losses in the third and fourth quarters of 2012,
compared to $4.0 million in the fourth quarter of 2011. For the
year ended December 31, 2012, the provision for credit losses was
$6.0 million, down 50% from $12.1 million for the year ended
December 31, 2011. The total net charge offs for the fourth quarter
of 2012 was $3.2 million, down from $5.9 million in the third
quarter of 2012, and down from $15.1 million in the fourth quarter
of 2011. The allowance for loan losses decreased to $63.3 million,
or 3.09% of total gross loans.
Net interest income, after the provision for credit losses,
totaled $26.4 million in the fourth quarter of 2012, up from $24.9
million in the third quarter of 2012, and up from $20.4 million in
the fourth quarter of 2011. For the year ended December 31, 2012,
net interest income, after the provision for credit losses, totaled
$95.1 million, up 6.7% from $89.1 million for the year ended
December 31, 2011.
Non-interest income in the fourth quarter of 2012 was $7.5
million, up from $6.5 million in the third quarter of 2012 and $6.3
million in the fourth quarter of 2011, due mainly to increases in
service charges, insurance commissions, trade finance and gain on
sales of SBA loans, partially offset by net losses recognized from
selling non-performing loans. The Bank recognized a $2.7 million
gain on sales of SBA loans, and a $1.2 million net loss on sales of
other loans in the fourth quarter of 2012, compared to a $1.8
million gain on sales of SBA loans and a $515,000 net loss on sales
of other loans in the third quarter of 2012. For the year ended
December 31, 2012, non-interest income totaled $24.8 million,
compared to $23.9 million for the year ended December 31, 2011, due
primarily to a $5.4 million increase in gain on selling SBA loans,
mainly offset by a $3.5 million increase in net losses on selling
non-performing loans.
Non-interest expense in the fourth quarter of 2012 was $19.5
million, compared to $18.8 million in the third quarter of 2012.
The increase was due mainly to increases in deposit insurance
premiums and regulatory assessments, professional fees, and
advertising and promotion expenses, partially offset by decreases
in other operating expenses, other real estate owned ("OREO")
expenses, and supplies and communications expenses. The increase in
deposit insurance premiums and regulatory assessments in the fourth
quarter of 2012 was attributable to a year-to-date true-up
adjustment of $300,000. Assuming the assessment factors remain
constant, the quarterly assessment for 2013 is expected to be
approximately $1.0 million. Professional fees increased $632,000,
or 56.8%, in the fourth quarter of 2012, due mainly to additional
professional services related to exploring strategic alternatives.
Advertising and promotion expenses increased by $220,000, or 21.5%,
in the fourth quarter of 2012, due mainly to special promotions and
events related to the celebration of the Bank's 30th
anniversary.
Non-interest expense for the year ended December 31, 2012
decreased by $7.2 million, or 8.6%, to $76.9 million from $84.0
million for the year ended December 31, 2011. The decrease was
mainly due to a $2.2 million unconsummated capital offering expense
in 2011, and reductions in deposit insurance premiums, loan and
OREO related expenses, data processing, and D&O liability
insurance, partially offset by an increase in salaries and employee
benefits due mainly to increased incentive bonuses, an increase in
professional fees related to exploring strategic alternatives, and
an increase in advertising and promotion expenses related to the
celebration of the Bank's 30th anniversary.
Hanmi released the remainder of the valuation allowance of $5.5
million for its deferred tax asset in the fourth quarter of 2012,
and had a $374,000 provision for income taxes, which represented a
2.6% effective tax rate for the fourth quarter of 2012. "We have
released a total of $62.6 million DTA valuation allowance, bringing
the total income tax benefit to $47.4 million for the year ended
December 31, 2012. In 2013, our effective tax rate is expected to
be approximately 39% of pre-tax income." said Yoon.
Balance Sheet
Total assets were $2.88 billion at December 31, 2012, up 1.4%
from $2.84 billion at September 30, 2012, and up 5.0% from $2.74
billion at December 31, 2011.
Loans receivable, excluding loans held for sale, increased 4.9%
in the fourth quarter of 2012 and 7.4% year-over-year to $1.99
billion at December 31, 2012, up from $1.89 billion at September
30, 2012, and up from $1.85 billion at December 31, 2011. Loans
held for sale totaled $8.3 million at December 31, 2012, down from
$10.7 million at September 30, 2012, and down from $22.6 million at
December 31, 2011. Average gross loans, net of deferred loan fees,
increased to $2.03 billion for the fourth quarter of 2012, up from
$1.96 billion for the third quarter of 2012, and up from $2.01
billion for the fourth quarter of 2011.
Liquidity remained high with the total average investment
securities portfolio at $421.5 million during the fourth quarter of
2012, up from $386.5 million during the third quarter of 2012 and
even with $421.4 million during the fourth quarter of 2011. Cash
and cash equivalents totaled $268.0 million at December 31, 2012,
down from $302.4 million at September 30, 2012, but up from $201.7
million at December 31, 2011.
Average deposits for the fourth quarter of 2012 increased
slightly to $2.39 billion, up from $2.36 billion for the third
quarter of 2012, and up from $2.35 billion for the fourth quarter
of 2011. The overall mix of funding continued to improve with time
deposits (particularly high-cost promotional accounts) declining
and transaction account balances increasing. Core deposits, which
are total deposits less time deposits equal to or greater than
$100,000, accounted for 74.3% of total deposits at December 31,
2012, up from 64.9% of total deposits at December 31, 2011. Demand
deposit accounts increased 13.6% to $720.9 million at December 31,
2012 compared to $634.5 million at December 31, 2011. Demand
deposit accounts accounted for 30.1% of total deposits at December
31, 2012, up from 27.1% of total deposits at December 31, 2011.
Time deposits equal to or greater than $100,000 were down $206.0
million in the past twelve months. Total deposits were $2.40
billion at December 31, 2012 compared to $2.34 billion at December
31, 2011.
At December 31, 2012, total stockholders' equity was $378.4
million, or $12.01 per share. Tangible common stockholders' equity
was $377.0 million at December 31, 2012, or 13.09% of tangible
assets, compared to $362.6 million, or 12.77% of tangible assets,
and $284.1 million, or 10.36% of tangible assets at September 31,
2012 and December 31, 2011, respectively. Tangible book value per
share was $11.97 at December 31, 2012, up 4.0% from $11.52 at
September 30, 2012, and up 32.7% from $9.02 at December 31,
2011.
Asset Quality
Non-performing loans ("NPLs"), excluding loans held for sale,
decreased to $37.3 million at December 31, 2012, down 16.6% from
$44.7 million at September 30, 2012, and down 28.8% from $52.4
million at December 31, 2011. Troubled debt restructurings
("TDRs"), which are loans that have been modified through interest
rate concessions, term extensions or payment alterations to assist
the borrowers in financial difficulty, totaled $35.7 million at
December 31, 2012, down from $38.0 million at September 30, 2012,
and down from $51.6 million at December 31, 2011. Of these TDRs,
$18.8 million are included in NPLs. $484,000 of NPLs were recorded
at the lower of cost or fair value and classified as held for sale
at December 31, 2012, compared to $4.4 million at September 30,
2012 and $15.0 million at December 31, 2011. The following table
shows NPLs, excluding loans held for sale, by loan category:
|
December 31,
2012 |
September 30,
2012 |
December 31,
2011 |
|
|
% to Total |
|
% to Total |
|
% to Total |
|
Amount |
NPL |
Amount |
NPL |
Amount |
NPL |
Real Estate Loans: |
|
|
|
|
|
|
Commercial Property |
|
|
|
|
|
|
Retail |
$ 1,079 |
2.9% |
$ 1,102 |
2.5% |
$ 1,260 |
2.4% |
Land |
2,097 |
5.6% |
2,037 |
4.6% |
2,362 |
4.5% |
Other |
-- |
0.0% |
-- |
0.0% |
1,199 |
2.3% |
Construction |
-- |
0.0% |
7,868 |
17.6% |
8,310 |
15.9% |
Residential Property |
1,270 |
3.4% |
1,411 |
3.2% |
2,097 |
4.0% |
Commercial & Industrial
Loans: |
|
|
|
|
|
|
Commercial Term Loans |
|
|
|
|
|
|
Unsecured |
8,311 |
22.3% |
8,106 |
18.1% |
7,706 |
14.7% |
Secured by Real Estate |
8,679 |
23.3% |
8,418 |
18.8% |
11,725 |
22.4% |
Commercial Lines of Credit |
1,521 |
4.1% |
1,359 |
3.0% |
1,431 |
2.7% |
SBA |
12,563 |
33.7% |
13,048 |
29.2% |
15,479 |
29.6% |
Consumer Loans |
1,759 |
4.7% |
1,343 |
3.0% |
809 |
1.5% |
Total Non-Performing
Loans |
$ 37,279 |
100.0% |
$ 44,692 |
100.0% |
$ 52,378 |
100.0% |
"In the fourth quarter of 2012, we continued to sell NPLs into
the secondary market, though not as actively as we have in the
previous quarters. Fourth quarter NPL sales totaled $8.2 million,
bringing the year-end total NPL sales to $42.3 million," said J.H.
Son, Executive Vice President and Chief Credit Officer. "While our
strategy of selling loans before they are moved into foreclosure
has allowed us to efficiently reduce non-performing assets over the
past few years, we expect to have substantially fewer sales in the
coming year, which reflects the success of this program and the
continuing improvement in the performance of our loan portfolio.
Reflecting the continued improvement in asset quality, classified
loans were $100.4 million, or 4.9% of total gross loans, at
December 31, 2012, down from $130.9 million, or 6.7% of total gross
loans, at September 31, 2012, and down from $282.4 million, or
14.6% of total gross loans, at December 31, 2011."
Delinquent loans that are less than 90 days past due and still
accruing interest decreased to $2.4 million at December 31, 2012,
or 0.12% of gross loans, down from $4.0 million, or 0.20% of gross
loans, at September 30, 2012. At December 31, 2012, the allowance
for loan losses was $63.3 million, or 3.09% of gross loans. At
December 31, 2012, the allowance for loan losses was 169.8% of
NPLs, compared to 147.9% at September 30, 2012. For the fourth
quarter of 2012, net charge-offs were $3.2 million, compared to
$5.9 million in the third quarter of 2012 and $15.1 million in the
fourth quarter of 2011.
Conference Call Information
Management will host a conference call today, January 24, 2013,
at 1:30 p.m. Pacific Time (4:30 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 on January 24, 2013 by dialing
(480) 629-9692 at 1:30 p.m. Pacific Time, 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, 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 stockholder
value.
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 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; ability to identify a suitable strategic partner or to
consummate a strategic transaction; adequacy of our allowance for
loan losses; credit quality and the effect of credit quality on our
provision for 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 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 Item 1A of our Form
10-K for the year ended December 31, 2011, our quarterly reports on
Form 10-Q, and current and periodic reports that we will file with
the SEC 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 |
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|
CONSOLIDATED BALANCE SHEETS
(UNAUDITED) |
|
|
|
|
|
(In Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
September 30, |
Percentage |
December 31, |
Percentage |
|
2012 |
2012 |
Change |
2011 |
Change |
ASSETS |
|
|
|
|
|
Cash and Due From Banks |
$ 92,350 |
$ 72,053 |
28.2% |
$ 80,582 |
14.6% |
Interest-Bearing Deposits in Other
Banks |
175,697 |
217,375 |
-19.2% |
101,101 |
73.8% |
Federal Funds Sold |
-- |
13,000 |
-100.0% |
20,000 |
-100.0% |
Cash and Cash Equivalents |
268,047 |
302,428 |
-11.4% |
201,683 |
32.9% |
Restricted Cash |
5,350 |
4,393 |
21.8% |
1,818 |
194.3% |
Term Federal Funds Sold |
-- |
55,000 |
-100.0% |
115,000 |
-100.0% |
Securities Available for Sale, at Fair
Value |
451,060 |
410,210 |
10.0% |
381,862 |
18.1% |
Securities Held to Maturity, at Amortized
Cost |
-- |
-- |
NM |
59,742 |
-100.0% |
Loans Held for Sale, at the Lower of Cost
or Fair Value |
8,306 |
10,736 |
-22.6% |
22,587 |
-63.2% |
Loans Receivable, Net of Allowance for
Loan Losses |
1,986,051 |
1,892,813 |
4.9% |
1,849,020 |
7.4% |
Accrued Interest Receivable |
7,581 |
7,467 |
1.5% |
7,829 |
-3.2% |
Premises and Equipment, Net |
15,150 |
15,412 |
-1.7% |
16,603 |
-8.8% |
Other Real Estate Owned, Net |
774 |
364 |
112.6% |
180 |
330.0% |
Customers' Liability on Acceptances |
1,336 |
2,157 |
-38.1% |
1,715 |
-22.1% |
Servicing Assets |
5,542 |
5,148 |
7.7% |
3,720 |
49.0% |
Other Intangible Assets, Net |
1,335 |
1,376 |
-3.0% |
1,533 |
-12.9% |
Investment in Federal Home Loan Bank
Stock, at Cost |
17,800 |
19,621 |
-9.3% |
22,854 |
-22.1% |
Investment in Federal Reserve Bank Stock,
at Cost |
12,222 |
10,261 |
19.1% |
8,558 |
42.8% |
Deferred Tax Assets |
50,998 |
48,826 |
4.4% |
-- |
NM |
Current Tax Assets |
9,030 |
11,689 |
-22.7% |
9,073 |
-0.5% |
Bank-Owned Life Insurance |
29,054 |
28,816 |
0.8% |
28,289 |
2.7% |
Prepaid Expenses |
2,084 |
2,239 |
-6.9% |
1,598 |
30.4% |
Other Assets |
10,800 |
12,901 |
-16.3% |
11,160 |
-3.2% |
TOTAL ASSETS |
$ 2,882,520 |
$ 2,841,857 |
1.4% |
$ 2,744,824 |
5.0% |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest-Bearing |
$ 720,931 |
$ 694,345 |
3.8% |
$ 634,466 |
13.6% |
Interest-Bearing |
1,675,032 |
1,669,040 |
0.4% |
1,710,444 |
-2.1% |
Total Deposits |
2,395,963 |
2,363,385 |
1.4% |
2,344,910 |
2.2% |
Accrued Interest Payable |
11,775 |
15,266 |
-22.9% |
16,032 |
-26.6% |
Bank's Liability on Acceptances |
1,336 |
2,157 |
-38.1% |
1,715 |
-22.1% |
Federal Home Loan Bank Advances |
2,935 |
3,029 |
-3.1% |
3,303 |
-11.1% |
Junior Subordinated Debentures |
82,406 |
82,406 |
0.0% |
82,406 |
0.0% |
Accrued Expenses and Other
Liabilities |
9,741 |
11,627 |
-16.2% |
10,850 |
-10.2% |
TOTAL LIABILITIES |
2,504,156 |
2,477,870 |
1.1% |
2,459,216 |
1.8% |
|
|
|
|
|
|
STOCKHOLDERS' EQUITY: |
|
|
|
|
|
Common Stock |
257 |
257 |
0.0% |
257 |
0.0% |
Additional Paid-In Capital |
550,140 |
549,814 |
0.1% |
549,744 |
0.1% |
Unearned Compensation |
(74) |
(92) |
-19.6% |
(166) |
-55.4% |
Accumulated Other Comprehensive
Income |
5,418 |
5,364 |
1.0% |
3,524 |
53.7% |
Accumulated Deficit |
(107,519) |
(121,498) |
-11.5% |
(197,893) |
-45.7% |
Less Treasury Stock |
(69,858) |
(69,858) |
0.0% |
(69,858) |
0.0% |
TOTAL STOCKHOLDERS'
EQUITY |
378,364 |
363,987 |
3.9% |
285,608 |
32.5% |
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY |
$ 2,882,520 |
$ 2,841,857 |
1.4% |
$ 2,744,824 |
5.0% |
|
|
|
|
|
|
HANMI FINANCIAL
CORPORATION AND SUBSIDIARIES |
|
|
|
|
CONSOLIDATED STATEMENT OF
OPERATIONS (UNAUDITED) |
|
|
|
|
(In Thousands, Except Per Share Data) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
December 31, |
September 30, |
Percentage |
December 31, |
Percentage |
|
2012 |
2012 |
Change |
2011 |
Change |
INTEREST AND DIVIDEND INCOME: |
|
|
|
|
|
Interest and Fees on Loans |
$ 27,418 |
$ 26,781 |
2.4% |
$ 28,162 |
-2.6% |
Taxable Interest on Investment
Securities |
2,138 |
1,992 |
7.3% |
1,979 |
8.0% |
Tax-Exempt Interest on Investment
Securities |
95 |
98 |
-3.1% |
100 |
-5.0% |
Interest on Term Federal Funds Sold |
22 |
191 |
-88.5% |
182 |
-87.9% |
Interest on Federal Funds Sold |
7 |
20 |
-65.0% |
5 |
40.0% |
Interest on Interest-Bearing Deposits in
Other Banks |
153 |
142 |
7.7% |
72 |
112.5% |
Dividends on Federal Reserve Bank
Stock |
179 |
154 |
16.2% |
121 |
47.9% |
Dividends on Federal Home Loan Bank
Stock |
127 |
24 |
429.2% |
19 |
568.4% |
Total Interest and Dividend Income |
30,139 |
29,402 |
2.5% |
30,640 |
-1.6% |
INTEREST EXPENSE: |
|
|
|
|
|
Interest on Deposits |
3,366 |
3,639 |
-7.5% |
5,301 |
-36.5% |
Interest on Federal Home Loan Bank
Advances |
39 |
40 |
-2.5% |
44 |
-11.4% |
Interest on Junior Subordinated
Debentures |
303 |
804 |
-62.3% |
767 |
-60.5% |
Interest on Other Borrowings |
-- |
-- |
NM |
94 |
-100.0% |
Total Interest Expense |
3,708 |
4,483 |
-17.3% |
6,206 |
-40.3% |
NET INTEREST INCOME BEFORE PROVISION FOR
CREDIT LOSSES |
26,431 |
24,919 |
6.1% |
24,434 |
8.2% |
Provision for Credit Losses |
-- |
-- |
NM |
4,000 |
-100.0% |
NET INTEREST INCOME AFTER PROVISION FOR
CREDIT LOSSES |
26,431 |
24,919 |
6.1% |
20,434 |
29.3% |
NON-INTEREST INCOME: |
|
|
|
|
|
Service Charges on Deposit Accounts |
3,191 |
2,851 |
11.9% |
3,182 |
0.3% |
Insurance Commissions |
1,235 |
1,092 |
13.1% |
1,097 |
12.6% |
Trade Finance & Other Service Charges
and Fees |
1,235 |
1,111 |
11.2% |
1,191 |
3.7% |
Bank-Owned Life Insurance Income |
238 |
235 |
1.3% |
239 |
-0.4% |
Net Gain on Sales of SBA Loans |
2,678 |
1,772 |
51.1% |
2,931 |
-8.6% |
Net Loss on Sales of Other Loans |
(1,247) |
(515) |
142.1% |
(2,548) |
-51.1% |
Net Gain on Sales of Investment
Securities |
4 |
10 |
-60.0% |
1 |
300.0% |
Other-than-temporary Impairment Loss on
Investment Securities |
-- |
(176) |
-100.0% |
-- |
NM |
Other Operating Income |
136 |
140 |
-2.9% |
255 |
-46.7% |
Total Non-Interest Income |
7,470 |
6,520 |
14.6% |
6,348 |
17.7% |
NON-INTEREST EXPENSE: |
|
|
|
|
|
Salaries and Employee Benefits |
9,224 |
9,148 |
0.8% |
9,433 |
-2.2% |
Occupancy and Equipment |
2,585 |
2,623 |
-1.4% |
2,533 |
2.1% |
Deposit Insurance Premiums and Regulatory
Assessments |
1,249 |
283 |
341.3% |
1,631 |
-23.4% |
Data Processing |
1,179 |
1,211 |
-2.6% |
1,356 |
-13.1% |
Other Real Estate Owned Expense |
(33) |
352 |
-109.4% |
71 |
-146.5% |
Professional Fees |
1,744 |
1,112 |
56.8% |
1,114 |
56.6% |
Directors and Officers Liability
Insurance |
298 |
296 |
0.7% |
736 |
-59.5% |
Supplies and Communications |
567 |
669 |
-15.2% |
537 |
5.6% |
Advertising and Promotion |
1,243 |
1,023 |
21.5% |
888 |
40.0% |
Loan-Related Expense |
75 |
164 |
-54.3% |
196 |
-61.7% |
Amortization of Other Intangible
Assets |
41 |
41 |
0.0% |
131 |
-68.7% |
Other Operating Expenses |
1,376 |
1,882 |
-26.9% |
2,623 |
-47.5% |
Total Non-Interest Expense |
19,548 |
18,804 |
4.0% |
21,249 |
-8.0% |
INCOME BEFORE PROVISION FOR INCOME TAXES |
14,353 |
12,635 |
13.6% |
5,533 |
159.4% |
(Benefit) Provision for Income Taxes |
374 |
(644) |
-158.1% |
27 |
1285.2% |
NET INCOME |
$ 13,979 |
$ 13,279 |
5.3% |
$ 5,506 |
153.9% |
|
|
|
|
|
|
EARNINGS PER SHARE: |
|
|
|
|
|
Basic |
$ 0.44 |
$ 0.42 |
|
$ 0.22 |
|
Diluted |
$ 0.44 |
$ 0.42 |
|
$ 0.22 |
|
WEIGHTED-AVERAGE SHARES OUTSTANDING: |
|
|
|
|
|
Basic |
31,479,921 |
31,475,976 |
|
24,905,479 |
|
Diluted |
31,549,580 |
31,545,111 |
|
24,924,935 |
|
COMMON SHARES OUTSTANDING |
31,496,540 |
31,489,201 |
|
31,489,201 |
|
|
|
|
|
|
|
HANMI FINANCIAL
CORPORATION AND SUBSIDIARIES |
|
|
CONSOLIDATED STATEMENT OF
OPERATIONS (UNAUDITED) |
|
|
(In Thousands, Except Per Share Data) |
|
|
|
|
|
|
|
|
Year
Ended |
|
December 31, |
December 31, |
Percentage |
|
2012 |
2011 |
Change |
INTEREST AND DIVIDEND INCOME: |
|
|
|
Interest and Fees on Loans |
$ 108,982 |
$ 117,671 |
-7.4% |
Taxable Interest on Investment
Securities |
8,418 |
9,768 |
-13.8% |
Tax-Exempt Interest on Investment
Securities |
394 |
216 |
82.4% |
Interest on Term Federal Funds Sold |
706 |
276 |
155.8% |
Interest on Federal Funds Sold |
60 |
27 |
122.2% |
Interest on Interest-Bearing Deposits in
Other Banks |
422 |
315 |
34.0% |
Dividends on Federal Reserve Bank
Stock |
609 |
458 |
33.0% |
Dividends on Federal Home Loan Bank
Stock |
209 |
76 |
175.0% |
Total Interest and Dividend Income |
119,800 |
128,807 |
-7.0% |
INTEREST EXPENSE: |
|
|
|
Interest on Deposits |
15,877 |
23,958 |
-33.7% |
Interest on Federal Home Loan Bank
Advances |
165 |
662 |
-75.1% |
Interest on Junior Subordinated
Debentures |
2,703 |
2,915 |
-7.3% |
Interest on Other Borrowings |
-- |
95 |
-100.0% |
Total Interest Expense |
18,745 |
27,630 |
-32.2% |
NET INTEREST INCOME BEFORE PROVISION FOR
CREDIT LOSSES |
101,055 |
101,177 |
-0.1% |
Provision for Credit Losses |
6,000 |
12,100 |
-50.4% |
NET INTEREST INCOME AFTER PROVISION FOR
CREDIT LOSSES |
95,055 |
89,077 |
6.7% |
NON-INTEREST INCOME: |
|
|
|
Service Charges on Deposit Accounts |
12,146 |
12,826 |
-5.3% |
Insurance Commissions |
4,857 |
4,500 |
7.9% |
Trade Finance & Other Service Charges
and Fees |
4,615 |
4,677 |
-1.3% |
Bank-Owned Life Insurance Income |
1,110 |
939 |
18.2% |
Net Gain on Sales of SBA Loans |
9,923 |
4,543 |
118.4% |
Net Loss on Sales of Other Loans |
(9,481) |
(6,020) |
57.5% |
Net Gain on Sales of Investment
Securities |
1,396 |
1,635 |
-14.6% |
Other-than-temporary Impairment Loss on
Investment Securities |
(292) |
-- |
NM |
Other Operating Income |
538 |
751 |
-28.4% |
Total Non-Interest Income |
24,812 |
23,851 |
4.0% |
NON-INTEREST EXPENSE: |
|
|
|
Salaries and Employee Benefits |
36,931 |
35,465 |
4.1% |
Occupancy and Equipment |
10,424 |
10,353 |
0.7% |
Deposit Insurance Premiums and Regulatory
Assessments |
4,431 |
6,630 |
-33.2% |
Data Processing |
4,941 |
5,601 |
-11.8% |
Other Real Estate Owned Expense |
344 |
1,620 |
-78.8% |
Professional Fees |
4,694 |
4,187 |
12.1% |
Directors and Officers Liability
Insurance |
1,186 |
2,940 |
-59.7% |
Supplies and Communications |
2,370 |
2,323 |
2.0% |
Advertising and Promotion |
3,876 |
2,993 |
29.5% |
Loan-Related Expense |
527 |
827 |
-36.3% |
Amortization of Other Intangible
Assets |
198 |
700 |
-71.7% |
Expense related to Unconsummated Capital
Offerings |
-- |
2,220 |
-100.0% |
Other Operating Expenses |
6,939 |
8,189 |
-15.3% |
Total Non-Interest Expense |
76,861 |
84,048 |
-8.6% |
INCOME BEFORE PROVISION FOR INCOME TAXES |
43,006 |
28,880 |
48.9% |
(Benefit) Provision for Income Taxes |
(47,368) |
733 |
-6562.2% |
NET INCOME |
$ 90,374 |
$ 28,147 |
221.1% |
|
|
|
|
EARNINGS PER SHARE: |
|
|
|
Basic |
$ 2.87 |
$ 1.38 |
|
Diluted |
$ 2.87 |
$ 1.38 |
|
WEIGHTED-AVERAGE SHARES OUTSTANDING: |
|
|
|
Basic |
31,475,510 |
20,403,549 |
|
Diluted |
31,515,582 |
20,422,984 |
|
COMMON SHARES OUTSTANDING |
31,496,540 |
31,489,201 |
|
|
|
|
|
HANMI FINANCIAL
CORPORATION AND SUBSIDIARIES |
|
|
|
|
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME (UNAUDITED) |
|
|
|
(In Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
December 31, |
September 30, |
Percentage |
December 31, |
Percentage |
|
2012 |
2012 |
Change |
2011 |
Change |
|
|
|
|
|
|
NET INCOME |
$ 13,979 |
$ 13,279 |
5.3% |
$ 5,506 |
153.9% |
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME, NET OF TAX |
|
|
|
|
|
Unrealized Gain on Securities |
|
|
|
|
|
Unrealized Holding Gain Arising
(Decreasing) During Period |
121 |
1,655 |
-92.7% |
(382) |
131.7% |
Unrealized Holding Gain Arising from the
transfer of Held-to-Maturity Securities to Available-for-Sale
Securities |
-- |
1,968 |
-100.0% |
-- |
NM |
Less: Reclassification Adjustment for
Loss (Gain) Included in Net Income |
(4) |
166 |
-102.4% |
(1) |
300.0% |
Unrealized Gain on Interest Rate
Swap |
-- |
-- |
NM |
(1) |
-100.0% |
Unrealized Gain (Loss) on Interest-Only
Strip of Servicing Assets |
-- |
2 |
-100.0% |
6 |
-100.0% |
Income Taxes Related to Items of Other
Comprehensive Income |
(63) |
(1,581) |
-96.0% |
-- |
NM |
Other Comprehensive Income |
54 |
2,210 |
-97.6% |
(378) |
-114.3% |
COMPREHENSIVE INCOME ATTRIBUTABLE TO
SHAREHOLDERS |
$ 14,033 |
$ 15,489 |
-9.4% |
$ 5,128 |
173.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended |
|
|
|
December 31, |
December 31, |
Percentage |
|
|
|
2012 |
2011 |
Change |
|
|
|
|
|
|
|
|
NET INCOME |
$ 90,374 |
$ 28,147 |
221.1% |
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME, NET OF TAX |
|
|
|
|
|
Unrealized Gain on Securities |
|
|
|
|
|
Unrealized Holding Gain Arising During
Period |
2,369 |
8,123 |
-70.8% |
|
|
Unrealized Holding Gain Arising from the
transfer of Held-to-Maturity Securities to Available-for-Sale
Securities |
1,968 |
-- |
NM |
|
|
Less: Reclassification Adjustment for
(Gain) Included in Net Income |
(1,104) |
(1,635) |
-32.5% |
|
|
Unrealized Gain on Interest Rate
Swap |
9 |
2 |
350.0% |
|
|
Unrealized Gain (Loss) on Interest-Only
Strip of Servicing Assets |
(4) |
(2) |
100.0% |
|
|
Income Taxes Related to Items of Other
Comprehensive Income |
(1,344) |
-- |
NM |
|
|
Other Comprehensive Income |
1,894 |
6,488 |
-70.8% |
|
|
COMPREHENSIVE INCOME ATTRIBUTABLE TO
SHAREHOLDERS |
$ 92,268 |
$ 34,635 |
166.4% |
|
|
|
|
|
|
|
|
HANMI FINANCIAL
CORPORATION AND SUBSIDIARIES |
|
|
|
|
SELECTED FINANCIAL DATA
(UNAUDITED) |
|
|
|
|
|
(In Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
Twelve Months
Ended |
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|
2012 |
2012 |
2011 |
2012 |
2011 |
AVERAGE BALANCES: |
|
|
|
|
|
Average Gross Loans, Net of Deferred Loan
Fees (1) |
$ 2,026,122 |
$ 1,958,819 |
$ 2,012,008 |
$ 1,993,367 |
$ 2,114,546 |
Average Investment Securities |
$ 421,520 |
$ 386,513 |
$ 421,386 |
$ 412,554 |
$ 446,198 |
Average Interest-Earning Assets |
$ 2,731,473 |
$ 2,694,571 |
$ 2,656,213 |
$ 2,686,425 |
$ 2,752,696 |
Average Total Assets |
$ 2,872,897 |
$ 2,829,778 |
$ 2,708,364 |
$ 2,792,352 |
$ 2,787,707 |
Average Deposits |
$ 2,388,725 |
$ 2,361,534 |
$ 2,350,558 |
$ 2,349,082 |
$ 2,404,655 |
Average Borrowings |
$ 85,390 |
$ 85,482 |
$ 99,545 |
$ 85,760 |
$ 153,148 |
Average Interest-Bearing Liabilities |
$ 1,767,640 |
$ 1,766,709 |
$ 1,814,548 |
$ 1,758,135 |
$ 1,957,077 |
Average Stockholders' Equity |
$ 370,307 |
$ 352,980 |
$ 229,868 |
$ 328,016 |
$ 200,517 |
Average Tangible Equity |
$ 368,945 |
$ 351,577 |
$ 228,116 |
$ 326,589 |
$ 198,626 |
|
|
|
|
|
|
PERFORMANCE RATIOS: |
|
|
|
|
|
Return on Average Assets (2) |
1.94% |
1.87% |
0.81% |
3.24% |
1.01% |
Return on Average Stockholders' Equity
(2) |
15.02% |
14.97% |
9.50% |
27.55% |
14.04% |
Return on Average Tangible Equity
(2) |
15.07% |
15.03% |
9.58% |
27.67% |
14.17% |
Efficiency Ratio |
57.66% |
59.81% |
69.03% |
61.07% |
67.22% |
Net Interest Spread (2),(3) |
3.57% |
3.34% |
3.22% |
3.40% |
3.27% |
Net Interest Margin (2),(3) |
3.86% |
3.69% |
3.66% |
3.77% |
3.68% |
|
|
|
|
|
|
ALLOWANCE FOR LOAN
LOSSES: |
|
|
|
|
|
Balance at Beginning of Period |
$ 66,107 |
$ 71,893 |
$ 100,792 |
$ 89,936 |
$ 146,059 |
Provision Charged to Operating
Expense |
407 |
117 |
4,241 |
7,157 |
12,536 |
Charge-Offs, Net of Recoveries |
(3,209) |
(5,903) |
(15,097) |
(33,788) |
(68,659) |
Balance at End of Period |
$ 63,305 |
$ 66,107 |
$ 89,936 |
$ 63,305 |
$ 89,936 |
|
|
|
|
|
|
ASSET QUALITY RATIOS: |
|
|
|
|
|
Net Loan Charge-Offs to Average Gross
Loans |
0.63% |
1.21% |
3.00% |
1.70% |
3.25% |
Allowance for Loan Losses to Total Gross
Loans |
3.09% |
3.38% |
4.64% |
3.09% |
4.64% |
Allowance for Loan Losses to Total
Non-Performing Loans |
169.81% |
147.92% |
171.71% |
169.81% |
171.71% |
Non-Performing Assets to Total
Assets |
1.32% |
1.59% |
1.91% |
1.32% |
1.91% |
Non-Performing Loans to Gross Loans |
1.82% |
2.28% |
2.70% |
1.82% |
2.70% |
Total Non-Performing Assets to Allowance
for Loan Losses |
60.11% |
68.16% |
58.44% |
60.11% |
58.44% |
|
|
|
|
|
|
ALLOWANCE FOR OFF-BALANCE SHEET
ITEMS: |
|
|
|
|
|
Balance at Beginning of Period |
$ 2,231 |
$ 2,348 |
$ 3,222 |
$ 2,981 |
$ 3,417 |
Provision Charged to Operating
Expense |
(407) |
(117) |
(241) |
(1,157) |
(436) |
Balance at End of Period |
$ 1,824 |
$ 2,231 |
$ 2,981 |
$ 1,824 |
$ 2,981 |
|
|
|
|
|
|
NON-PERFORMING ASSETS: |
|
|
|
|
|
Non-Accrual Loans |
$ 37,279 |
$ 44,692 |
$ 52,378 |
|
|
Loans 90 Days or More Past Due and Still
Accruing |
-- |
-- |
-- |
|
|
Total Non-Performing Loans |
37,279 |
44,692 |
52,378 |
|
|
Other Real Estate Owned, Net |
774 |
364 |
180 |
|
|
Total Non-Performing Assets |
38,053 |
45,056 |
52,558 |
|
|
Non-Performing Loans Classified as Loans
Held for Sale |
484 |
4,421 |
15,023 |
|
|
Non-Performing Assets (including Loans
Held for Sale) |
$ 38,537 |
$ 49,477 |
$ 67,581 |
|
|
|
|
|
|
|
|
DELINQUENT LOANS (30 to 89
Days Past Due and Still Accruing) |
$ 2,371 |
$ 4,005 |
$ 13,945 |
|
|
Delinquent Loans to Total Gross Loans |
0.12% |
0.20% |
0.72% |
|
|
|
|
|
|
|
|
(1) Loans Held for
Sale are included in average gross loans. |
(2) Annualized |
(3) Amounts
calculated on a fully taxable equivalent basis using the current
statutory federal tax rate. |
|
|
|
|
HANMI FINANCIAL
CORPORATION AND SUBSIDIARIES |
|
|
SELECTED FINANCIAL DATA,
CONTINUED (UNAUDITED) |
|
|
(In Thousands) |
|
|
|
|
|
|
|
|
At or for
the Three Months Ended |
|
December 31, |
September 30, |
December 31, |
|
2012 |
2012 |
2011 |
LOAN PORTFOLIO: |
|
|
|
Real Estate Loans |
$ 787,094 |
$ 736,287 |
$ 696,999 |
Residential Loans |
101,778 |
103,774 |
52,921 |
Commercial and Industrial Loans |
1,123,012 |
1,079,814 |
1,145,474 |
Consumer Loans |
36,676 |
38,415 |
43,346 |
Total Gross Loans |
2,048,560 |
1,958,290 |
1,938,740 |
Deferred Loan Costs |
796 |
630 |
216 |
Gross Loans, Net of Deferred Loan
Fees |
2,049,356 |
1,958,920 |
1,938,956 |
Allowance for Loan Losses |
(63,305) |
(66,107) |
(89,936) |
Loans Receivable, Net |
1,986,051 |
1,892,813 |
1,849,020 |
Loans Held for Sale, at the Lower of Cost
or Fair Value |
8,306 |
10,736 |
22,587 |
Total Loans Receivable, Net |
$ 1,994,357 |
$ 1,903,549 |
$ 1,871,607 |
|
|
|
|
LOAN MIX: |
|
|
|
Real Estate Loans |
38.4% |
37.6% |
36.0% |
Residential Loans |
5.0% |
5.3% |
2.7% |
Commercial and Industrial Loans |
54.8% |
55.1% |
59.1% |
Consumer Loans |
1.8% |
2.0% |
2.2% |
Total Gross Loans |
100.0% |
100.0% |
100.0% |
|
|
|
|
DEPOSIT PORTFOLIO: |
|
|
|
Demand - Noninterest-Bearing |
$ 720,931 |
$ 694,345 |
$ 634,466 |
Savings |
114,302 |
111,654 |
104,664 |
Money Market Checking and NOW
Accounts |
575,744 |
563,785 |
449,854 |
Time Deposits of $100,000 or More |
616,187 |
635,802 |
822,165 |
Other Time Deposits |
368,799 |
357,799 |
333,761 |
Total Deposits |
$ 2,395,963 |
$ 2,363,385 |
$ 2,344,910 |
|
|
|
|
DEPOSIT MIX: |
|
|
|
Demand - Noninterest-Bearing |
30.1% |
29.4% |
27.1% |
Savings |
4.8% |
4.7% |
4.5% |
Money Market Checking and NOW
Accounts |
24.0% |
23.9% |
19.2% |
Time Deposits of $100,000 or More |
25.7% |
26.9% |
35.1% |
Other Time Deposits |
15.4% |
15.1% |
14.1% |
Total Deposits |
100.0% |
100.0% |
100.0% |
|
|
|
|
CAPITAL RATIOS: |
|
|
|
Hanmi Financial |
|
|
|
Total Risk-Based Capital Ratio |
20.65% |
20.79% |
18.66% |
Tier 1 Risk-Based Capital Ratio |
19.37% |
19.52% |
17.36% |
Tier 1 Leverage Capital Ratio |
14.95% |
14.71% |
13.34% |
Tangible Equity to Tangible Assets
Ratio |
13.09% |
12.77% |
10.36% |
Hanmi Bank |
|
|
|
Total Risk-Based Capital Ratio |
19.85% |
19.91% |
17.57% |
Tier 1 Risk-Based Capital Ratio |
18.58% |
18.63% |
16.28% |
Tier 1 Leverage Capital Ratio |
14.33% |
14.05% |
12.50% |
Tangible Equity to Tangible Assets
Ratio |
15.29% |
14.96% |
12.48% |
|
|
|
|
HANMI FINANCIAL
CORPORATION AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
AVERAGE BALANCE, AVERAGE
YIELD EARNED AND AVERAGE RATE PAID (UNAUDITED) |
|
|
|
|
|
(In Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
December 31,
2012 |
September 30,
2012 |
December 31,
2011 |
|
|
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: |
|
|
|
|
|
|
|
|
|
Gross Loans, Net of Deferred Loan
Fees |
$ 2,026,122 |
$ 27,418 |
5.38% |
$ 1,958,819 |
$ 26,781 |
5.44% |
$ 2,012,008 |
$ 28,162 |
5.55% |
Municipal Securities - Taxable |
46,203 |
456 |
3.95% |
44,887 |
452 |
4.03% |
44,913 |
451 |
4.02% |
Municipal Securities - Tax Exempt |
12,731 |
146 |
4.59% |
12,587 |
151 |
4.80% |
12,987 |
153 |
4.71% |
Obligations of Other U.S. Government
Agencies |
82,995 |
387 |
1.87% |
74,345 |
280 |
1.51% |
83,927 |
324 |
1.54% |
Other Debt Securities |
279,591 |
1,295 |
1.85% |
254,694 |
1,260 |
1.98% |
279,559 |
1,204 |
1.72% |
Equity Securities |
30,971 |
306 |
3.95% |
30,886 |
178 |
2.31% |
31,930 |
140 |
1.75% |
Federal Funds Sold |
7,127 |
7 |
0.39% |
17,925 |
20 |
0.44% |
4,961 |
5 |
0.40% |
Term Federal Funds Sold |
6,685 |
22 |
1.31% |
78,967 |
191 |
0.96% |
77,717 |
182 |
0.93% |
Interest-Bearing Deposits in Other
Banks |
239,048 |
153 |
0.25% |
221,461 |
142 |
0.26% |
108,211 |
72 |
0.26% |
Total Interest-Earning Assets |
2,731,473 |
30,190 |
4.40% |
2,694,571 |
29,455 |
4.35% |
2,656,213 |
30,693 |
4.58% |
|
|
|
|
|
|
|
|
|
|
Noninterest-Earning Assets: |
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents |
73,567 |
|
|
70,591 |
|
|
69,635 |
|
|
Allowance for Loan Losses |
(65,228) |
|
|
(71,481) |
|
|
(99,182) |
|
|
Other Assets |
133,085 |
|
|
136,097 |
|
|
81,698 |
|
|
Total Noninterest-Earning Assets |
141,424 |
|
|
135,207 |
|
|
52,151 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
$ 2,872,897 |
|
|
$ 2,829,778 |
|
|
$ 2,708,364 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Savings |
$ 112,566 |
$ 477 |
1.69% |
$ 111,432 |
$ 516 |
1.84% |
$ 104,754 |
$ 600 |
2.27% |
Money Market Checking and NOW
Accounts |
583,259 |
772 |
0.53% |
555,454 |
859 |
0.62% |
449,998 |
644 |
0.57% |
Time Deposits of $100,000 or
More |
623,780 |
1,312 |
0.84% |
660,036 |
1,467 |
0.88% |
825,444 |
3,082 |
1.48% |
Other Time Deposits |
362,645 |
805 |
0.88% |
354,305 |
797 |
0.89% |
334,807 |
975 |
1.16% |
FHLB Advances |
2,984 |
39 |
5.20% |
3,076 |
40 |
5.17% |
3,349 |
44 |
5.21% |
Other Borrowings |
-- |
-- |
0.00% |
-- |
-- |
0.00% |
13,790 |
94 |
2.70% |
Junior Subordinated Debentures |
82,406 |
303 |
1.46% |
82,406 |
804 |
3.88% |
82,406 |
767 |
3.69% |
Total Interest-Bearing Liabilities |
1,767,640 |
3,708 |
0.83% |
1,766,709 |
4,483 |
1.01% |
1,814,548 |
6,206 |
1.36% |
|
|
|
|
|
|
|
|
|
|
Noninterest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
Demand Deposits |
706,475 |
|
|
680,307 |
|
|
635,555 |
|
|
Other Liabilities |
28,475 |
|
|
29,782 |
|
|
28,393 |
|
|
Total Noninterest-Bearing
Liabilities |
734,950 |
|
|
710,089 |
|
|
663,948 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
2,502,590 |
|
|
2,476,798 |
|
|
2,478,496 |
|
|
Shareholders' Equity |
370,307 |
|
|
352,980 |
|
|
229,868 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ 2,872,897 |
|
|
$ 2,829,778 |
|
|
$ 2,708,364 |
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
$ 26,482 |
|
|
$ 24,972 |
|
|
$ 24,487 |
|
|
|
|
|
|
|
|
|
|
|
COST OF DEPOSITS |
|
|
0.56% |
|
|
0.61% |
|
|
0.89% |
NET INTEREST SPREAD |
|
|
3.57% |
|
|
3.34% |
|
|
3.22% |
NET INTEREST MARGIN |
|
|
3.86% |
|
|
3.69% |
|
|
3.66% |
|
|
|
|
|
|
|
|
|
|
HANMI FINANCIAL
CORPORATION AND SUBSIDIARIES |
|
|
|
|
|
AVERAGE BALANCE, AVERAGE
YIELD EARNED AND AVERAGE RATE PAID (UNAUDITED) |
|
|
(In Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended |
|
December 31,
2012 |
December
31,2011 |
|
|
Interest |
Average |
|
Interest |
Average |
|
Average |
Income / |
Yield / |
Average |
Income / |
Yield / |
|
Balance |
Expense |
Rate |
Balance |
Expense |
Rate |
ASSETS |
|
|
|
|
|
|
Interest-Earning Assets: |
|
|
|
|
|
|
Gross Loans, Net of Deferred Loan
Fees |
$ 1,993,367 |
$ 108,982 |
5.47% |
$ 2,114,546 |
$ 117,671 |
5.56% |
Municipal Securities - Taxable |
45,213 |
1,796 |
3.97% |
21,740 |
884 |
4.07% |
Municipal Securities - Tax Exempt |
12,902 |
606 |
4.70% |
6,544 |
332 |
5.07% |
Obligations of Other U.S. Government
Agencies |
77,053 |
1,372 |
1.78% |
121,961 |
1,963 |
1.61% |
Other Debt Securities |
277,386 |
5,250 |
1.89% |
295,953 |
6,921 |
2.34% |
Equity Securities |
31,356 |
818 |
2.61% |
33,573 |
534 |
1.59% |
Federal Funds Sold |
14,178 |
60 |
0.42% |
5,857 |
27 |
0.46% |
Term Federal Funds Sold |
70,478 |
706 |
1.00% |
38,693 |
276 |
0.71% |
Interest-Bearing Deposits in Other
Banks |
164,492 |
422 |
0.26% |
113,829 |
315 |
0.28% |
Total Interest-Earning Assets |
2,686,425 |
120,012 |
4.47% |
2,752,696 |
128,923 |
4.68% |
|
|
|
|
|
|
|
Noninterest-Earning Assets: |
|
|
|
|
|
|
Cash and Cash Equivalents |
71,123 |
|
|
68,255 |
|
|
Allowance for Loan Losses |
(75,914) |
|
|
(119,233) |
|
|
Other Assets |
110,718 |
|
|
85,989 |
|
|
Total Noninterest-Earning Assets |
105,927 |
|
|
35,011 |
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
$ 2,792,352 |
|
|
$ 2,787,707 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
Interest-Bearing Liabilities: |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Savings |
$ 110,349 |
$ 2,152 |
1.95% |
$ 109,272 |
$ 2,757 |
2.52% |
Money Market Checking and NOW
Accounts |
529,976 |
3,085 |
0.58% |
465,840 |
3,461 |
0.74% |
Time Deposits of $100,000 or
More |
681,173 |
7,290 |
1.07% |
913,643 |
13,855 |
1.52% |
Other Time Deposits |
350,877 |
3,350 |
0.95% |
315,174 |
3,885 |
1.23% |
FHLB Advances |
3,354 |
165 |
4.92% |
66,191 |
662 |
1.00% |
Other Borrowings |
-- |
-- |
0.00% |
4,551 |
95 |
2.09% |
Junior Subordinated Debentures |
82,406 |
2,703 |
3.28% |
82,406 |
2,915 |
3.54% |
Total Interest-Bearing Liabilities |
1,758,135 |
18,745 |
1.07% |
1,957,077 |
27,630 |
1.41% |
|
|
|
|
|
|
|
Noninterest-Bearing Liabilities: |
|
|
|
|
|
|
Demand Deposits |
676,707 |
|
|
600,726 |
|
|
Other Liabilities |
29,494 |
|
|
29,387 |
|
|
Total Noninterest-Bearing
Liabilities |
706,201 |
|
|
630,113 |
|
|
|
|
|
|
|
|
|
Total Liabilities |
2,464,336 |
|
|
2,587,190 |
|
|
Shareholders' Equity |
328,016 |
|
|
200,517 |
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ 2,792,352 |
|
|
$ 2,787,707 |
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
$ 101,267 |
|
|
$ 101,293 |
|
|
|
|
|
|
|
|
COST OF DEPOSITS |
|
|
0.68% |
|
|
1.00% |
NET INTEREST SPREAD |
|
|
3.40% |
|
|
3.27% |
NET INTEREST MARGIN |
|
|
3.77% |
|
|
3.68% |
|
|
|
|
|
|
|
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 Financial and Hanmi Bank'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 Financial and Hanmi Bank. 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 Per Share Data) |
|
|
|
|
|
|
|
|
December 31, |
September 30, |
December 31, |
|
2012 |
2012 |
2011 |
HANMI FINANCIAL
CORPORATION |
|
|
|
Total Assets |
$ 2,882,520 |
$ 2,841,857 |
$ 2,744,824 |
Less Other Intangible Assets |
(1,335) |
(1,376) |
(1,533) |
Tangible Assets |
$ 2,881,185 |
$ 2,840,481 |
$ 2,743,291 |
|
|
|
|
Total Stockholders' Equity |
$ 378,364 |
$ 363,987 |
$ 285,608 |
Less Other Intangible Assets |
(1,335) |
(1,376) |
(1,533) |
Tangible Stockholders' Equity |
$ 377,029 |
$ 362,611 |
$ 284,075 |
|
|
|
|
Total Stockholders' Equity to Total
Assets Ratio |
13.13% |
12.81% |
10.41% |
Tangible Common Equity to Tangible Assets
Ratio |
13.09% |
12.77% |
10.36% |
|
|
|
|
Common Shares Outstanding |
31,496,540 |
31,489,201 |
31,487,924 |
Tangible Common Equity Per Common
Share |
$ 11.97 |
$ 11.52 |
$ 9.02 |
|
|
|
|
HANMI BANK |
|
|
|
Total Assets |
$ 2,877,041 |
$ 2,836,931 |
$ 2,739,577 |
Less Other Intangible Assets |
-- |
-- |
(34) |
Tangible Assets |
$ 2,877,041 |
$ 2,836,931 |
$ 2,739,543 |
|
|
|
|
Total Stockholders' Equity |
$ 439,986 |
$ 424,546 |
$ 342,023 |
Less Other Intangible Assets |
-- |
-- |
(34) |
Tangible Stockholders' Equity |
$ 439,986 |
$ 424,546 |
$ 341,989 |
|
|
|
|
Total Stockholders' Equity to Total
Assets Ratio |
15.29% |
14.96% |
12.48% |
Tangible Common Equity to Tangible Assets
Ratio |
15.29% |
14.96% |
12.48% |
CONTACT: Hanmi Financial Corporation
Mark (Shick) Yoon, CPA CVA
SVP & Interim Chief Financial Officer, Chief Strategy Officer
Direct Phone: 213-427-5636
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