Hanmi Financial Corporation (Nasdaq:HAFC), the holding company for
Hanmi Bank (the "Bank"), today reported that pretax earnings
improved 3.7% in the second quarter of 2013 and 78.4% for the year,
reflecting solid loan growth, increasing core deposits, improving
operating efficiencies and expanding net interest margin. With
provisioning at the full statutory tax rate, net income was $9.5
million, or $0.30 per diluted share, for the second quarter of
2013, compared to $10.1 million, or $0.32 per diluted share, for
the first quarter of 2013. In the second quarter of 2012, following
a net tax benefit of $47.2 million resulting from the reversal of a
$53.1 million deferred tax asset ("DTA") valuation allowance, Hanmi
earned $55.8 million, or $1.77 per diluted share. In the second
quarter of 2013, pretax income increased 78.4% to $15.3 million
from $8.6 million in the second quarter of 2012, and was up 3.7%
from $14.8 million in the first quarter of 2013. Tangible book
value increased 13.2% to $12.47 per share at June 30, 2013,
compared to $11.02 at June 30, 2012.
In the first six months of 2013, net income was $19.6 million,
or $0.62 per diluted share, compared to $63.1 million, or $2.00 per
diluted share, in the first six months of 2012, which included the
$47.2 million net tax benefit from the DTA valuation allowance
reversal in the second quarter of 2012. Pretax income increased
88.1% to $30.1 million in the first six months of 2013 from $16.0
million in the first six months of 2012.
"Our net interest margin jumped 24 basis points to 4.10% from
the first quarter of 2013, reflecting on-going investment of funds
into higher yielding loans and cost savings from the redemption of
$80 million of trust preferred securities," said C. G. Kum,
President and Chief Executive Officer. "As our organic growth
initiatives continue to succeed in expanding our loan portfolio and
putting our capital to work into more productive assets, we
anticipate our profitability will remain strong. We are also
excited about our expansion efforts in the state of Texas, where
our new loan production office will officially open in early
August."
"In the second quarter of 2013, provision for income taxes was
up by 24.3%, resulting in an effective tax rate of 38%. We
currently project our annual effective tax rate will be between 38
to 39%. The provision for income taxes in the first quarter of 2013
was reduced by a discrete deferred tax item," said Mark Yoon,
Senior Vice President and Chief Financial Officer. "In addition,
the sizable benefit generated from the DTA reversal had a
significant impact on earnings in the second quarter of 2012."
Second Quarter Results |
|
|
|
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
As
of or for the Three Months Ended |
|
June 30, |
March 31, |
June 30, |
|
2013 |
2013 |
2012 |
|
|
|
|
Net income |
$ 9,519 |
$ 10,110 |
$ 55,775 |
Net income per diluted common share |
$ 0.30 |
$ 0.32 |
$ 1.77 |
|
|
|
|
Total assets |
$ 2,773,414 |
$ 2,792,423 |
$ 2,846,652 |
Loans receivable, net |
$ 2,128,208 |
$ 2,061,156 |
$ 1,878,367 |
Total deposits |
$ 2,361,913 |
$ 2,333,012 |
$ 2,385,107 |
|
|
|
|
Return on average assets |
1.37% |
1.45% |
8.24% |
Return on average stockholders' equity |
9.70% |
10.71% |
74.63% |
Net interest margin |
4.10% |
3.86% |
3.84% |
Efficiency ratio |
56.55% |
56.44% |
61.07% |
|
|
|
|
Tangible common equity to tangible
assets |
14.22% |
13.89% |
12.20% |
Tangible common equity per common share |
$ 12.47 |
$ 12.28 |
$ 11.02 |
Financial Highlights (at or for the
period ended June 30, 2013)
- Net income for the second quarter of 2013 was $9.5 million, or
$0.30 per diluted share, compared to $10.1 million, or $0.32 per
diluted share, for the first quarter of 2013.
- Net interest margin ("NIM") increased to 4.10% in the second
quarter of 2013, up 24 basis points from 3.86% in the first quarter
of 2013 and up 26 basis points from 3.84% in the second quarter of
2012. Yields on earning assets improved 16 basis points to
4.59%, while the cost of interest-bearing liabilities continued to
improve by 11 basis points to 0.78% during the second quarter of
2013.
- New loan production for the second quarter of 2013 totaled
$163.8 million, consisting of $119.5 million of commercial real
estate loans, $31.2 million of Small Business Administration
("SBA") loans, $11.9 million of commercial term and lines of credit
loans, and $1.2 million of consumer loans.
- Asset quality improved during the second quarter of 2013, with
non-performing assets ("NPAs") declining to 1.04% of total
assets. Net charge offs also continued to improve, totaling
$1.6 million, or 0.30% of average gross loans on an annualized
basis.
- The redemption of the remaining $50 million in trust preferred
securities ("TPS") in April 2013 resulted in an interest cost
reduction of $510,000 in the second quarter of 2013.
- Tangible common equity ratio was 14.22% and tangible book value
was $12.47 per share at June 30, 2013, up 13.2% from $11.02 at June
30, 2012.
Results of Operations
Net interest income, before provision for credit losses,
increased 6.1% to $27.2 million for the second quarter of 2013,
from $25.6 million for the first quarter of 2013, and was up 7.9%
from $25.2 million for the second quarter of 2012. Interest
and dividend income increased 3.3% from the first quarter of 2013
and 1.4% from the second quarter of 2012, while interest expense
decreased 14.9% and 32.7% from the first quarter of 2013 and the
second quarter of 2012, respectively. Year to date, net
interest income before provision for credit losses improved 6.1% to
$52.8 million compared to $49.7 million for the first six months of
2012.
NIM in the second quarter of 2013 was 4.10%, up from 3.86% in
the first quarter of 2013 and 3.84% in the second quarter a year
ago. For the first six months of 2013, NIM increased to 3.98%
from 3.77% for the first six months of 2012. "The redemption
of TPS, coupled with solid loan growth and significantly reduced
low yielding cash and cash equivalents, boosted NIM this quarter.
Once the full impact of the $80 million TPS redemption is
realized starting from the third quarter of 2013, the expected
annual savings will be $2.5 million," said Yoon. The following
table details the asset yields, liability costs, spread and
margin.
|
Three
Months Ended |
Six Months
Ended |
|
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|
2013 |
2013 |
2012 |
2013 |
2012 |
|
|
|
|
|
|
Total interest-earning assets |
4.59% |
4.43% |
4.57% |
4.51% |
4.57% |
Total interest-bearing liability |
0.78% |
0.89% |
1.12% |
0.83% |
1.21% |
Net interest spread |
3.81% |
3.54% |
3.45% |
3.68% |
3.36% |
Net interest margin |
4.10% |
3.86% |
3.84% |
3.98% |
3.77% |
With steadily improving asset quality, Hanmi has not taken a
provision for credit losses in the past four quarters. In the
second quarter of 2012, Hanmi recorded a $4.0 million provision,
bringing its provision for the first six months of 2012 to $6.0
million. Total net charge-offs in the second quarter of 2013
were $1.6 million, down from $2.3 million in the first quarter of
2013 and from $13.4 million in the second quarter of 2012.
Allowance for loan losses ("ALLL") decreased slightly to
$59.9 million, or 2.74% of gross loans, and 214.03% of NPAs, at
June 30, 2013.
Net interest income after provision for credit losses increased
6.1% to $27.2 million in the second quarter of 2013, compared to
$25.6 million in the first quarter of 2013, and was up 28.3% from
$21.2 million in the second quarter of 2012. For the first six
months of 2013, net interest income after the provision for credit
losses increased 20.7% to $52.8 million compared to $43.7 million
for the first six months of 2012.
Non-interest income in the second quarter of 2013 was $8.2
million, compared to $8.4 million in the first quarter of 2013. The
modest decline in the second quarter of 2013 reflects lower gains
from selling SBA loans and higher losses from selling
non-performing loans ("NPLs"), partially offset by higher insurance
commissions and gains recognized from selling securities. For
the first six months of 2013, non-interest income increased 52.5%
to $16.5 million from $10.8 million for the first six months of
2012, reflecting a significant reduction in losses from selling
NPLs, partially offset by lower gains from selling SBA loans and
investment securities.
Non-interest expense in the second quarter of 2013 was $20.0
million, compared to $19.2 million in the first quarter of 2013,
and $19.8 million in the second quarter of 2012. For the first
six months of 2013, non-interest expense was $39.1 million,
compared to $38.5 million for the first six months of
2012. "Compensation and occupancy remain the largest
components of operating expense, and both line items together with
recurring expenditures are stable for the year and the quarter, due
to the cost control initiatives put in place in the past few
years," said Yoon. Yoon added that "deposit insurance premiums
and regulatory assessments were down for the year, due to lower
premium and assessment rates as a result of overall improvement in
our financial condition. Second quarter expenses are estimated
to be the quarterly run rate for the remainder of 2013.
Professional fees remained elevated in the second quarter of 2013,
due to legal expenses incurred in defending lawsuits in the
ordinary course of business, as well as professional and legal
expenses related to strategic reviews. We expect our costs for
professional advisors will be moderate in the second half of the
year."
Balance Sheet
Assets totaled $2.77 billion at June 30, 2013, down from $2.79
billion at March 31, 2013 and $2.85 billion at June 30,
2012. "While total assets are relatively stable, the mix of
assets and liabilities continues to improve with cash and cash
equivalents down 46% in the second quarter of 2013 and 74%
year-over-year. One of our strategic focuses to increase
franchise value continues to enhance our deposit mix by increasing
demand deposits with relationship-based lending," said Kum.
In the second quarter of 2013, the Bank produced 223 new loans
totaling $163.8 million, of which $31.2 million were SBA loans,
$119.5 million were commercial real estate loans including $43.9
million of owner-occupied property loans, $11.9 million were
commercial and industrial loans, and $1.2 million were consumer
loans. Overall loan production was up 12.6% from the second quarter
of 2012, and down 8.3% from the first quarter of 2013. The
decreased loan production over the first quarter of 2013 was
primarily attributable to a loan production initiative promoting
portfolio diversification. "We remain bullish on our loan
growth prospects for the rest of the year, as we have a solid
pipeline of prospective loans. And as indicated earlier, we are
expecting Texas to begin contributing to SBA loan production in the
second half of the year," said Kum.
Loans receivable, excluding loans held for sale, increased 3.3%
in the second quarter of 2013 and 13.3% year-over-year to $2.13
billion at June 30, 2013, up from $2.06 billion at March 31, 2013
and $1.88 billion at June 30, 2012. Loans held for sale totaled
$2.6 million at June 30, 2013, compared to $6.0 million at March
31, 2013 and $5.1 million at June 30, 2012. Average gross
loans, net of deferred loan fees, increased to $2.17 billion for
the second quarter of 2013, up from $2.07 billion for the first
quarter of 2013 and $2.00 billion for the second quarter of
2012.
Average deposits for the second quarter of 2013 were $2.37
billion, up slightly from $2.35 billion for the first quarter of
2013 and $2.31 billion for the second quarter of 2012. The
overall mix of funding continued to improve with time deposits
declining and low- and no-cost transaction account balances
increasing. The deposit mix for the past year is detailed in
the table below.
|
June 30, |
March 31, |
June 30, |
|
2013 |
2013 |
2012 |
|
|
|
|
Demand-noninterest-bearing |
31.1% |
30.5% |
28.5% |
Savings |
4.9% |
4.9% |
4.8% |
Money market checking and NOW accounts |
24.4% |
24.8% |
23.4% |
Time deposits of $100,000 or more |
23.9% |
23.9% |
28.7% |
Other time deposits |
15.7% |
15.9% |
14.6% |
Total deposits |
100.0% |
100.0% |
100.0% |
At June 30, 2013, total stockholders' equity was $395.4 million.
Tangible common stockholders' equity was $394.1 million at June 30,
2013, or 14.22% of tangible assets, compared to $347.0 million, or
12.20% of tangible assets, at June 30, 2012. Tangible book
value per share was $12.47 at June 30, 2013, up from $12.28 at
March 31, 2013, and $11.02 at June 30, 2012.
Asset Quality
NPLs, excluding loans held for sale, decreased 15.0% to $28.0
million at June 30, 2013, compared to $32.9 million at March 31,
2013 and decreased 38.0% from $45.1 million at June 30, 2012.
Troubled debt restructurings ("TDRs"), totaled $29.0 million at
June 30, 2013, down from $31.7 million at March 31, 2013 and $35.8
million at June 30, 2012. Of these TDRs, $14.1 million were
included in NPLs. Six loans totaling $2.6 million were
classified as held for sale and recorded at the lower of cost or
fair value at June 30, 2013. The following table shows NPLs
in each category:
|
June 30,
2013 |
March 31,
2013 |
June 30,
2012 |
|
|
% of Total |
|
% of Total |
|
% of Total |
|
Amount |
NPLs |
Amount |
NPLs |
Amount |
NPLs |
|
|
|
(In thousands) |
|
|
Real estate loans: |
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
Retail |
$ -- |
0.0% |
$ 950 |
2.9% |
$ 1,203 |
2.7% |
Land |
1,612 |
5.8% |
1,687 |
5.1% |
2,112 |
4.7% |
Other |
-- |
0.0% |
-- |
0.0% |
936 |
2.1% |
Construction |
-- |
0.0% |
-- |
0.0% |
7,930 |
17.5% |
Residential property |
1,620 |
5.8% |
1,638 |
5.0% |
1,298 |
2.9% |
Commercial & industrial
loans: |
|
|
|
|
|
|
Commercial term loans |
|
|
|
|
|
|
Unsecured |
6,209 |
22.2% |
7,253 |
22.1% |
6,953 |
15.4% |
Secured by real estate |
5,389 |
19.3% |
6,353 |
19.3% |
5,826 |
12.9% |
Commercial lines of credit |
1,052 |
3.8% |
1,505 |
4.6% |
1,585 |
3.5% |
SBA |
10,596 |
37.9% |
11,852 |
36.0% |
15,720 |
34.8% |
Consumer loans |
1,497 |
5.4% |
1,655 |
5.0% |
1,580 |
3.5% |
Total non-performing
loans |
$ 27,975 |
100.0% |
$ 32,893 |
100.0% |
$ 45,143 |
100.0% |
"With the economic recovery beginning to gain momentum, our
asset quality is continuing to improve. We were further able
to reduce the number of problem loan sales this year. Second
quarter NPL sales totaled $4.4 million, bringing total loans sales
for the first half of 2013 to $5.9 million," said J.H. Son,
Executive Vice President and Chief Credit Officer. "Losses
associated with our loan sales strategy were just $557,000 in the
first half of 2013, compared to $7.7 million in the first half of
2012." Classified loans were $89.6 million, or 4.1% of gross
loans, at June 30, 2013, down from $95.1 million, or 4.5%, at March
31, 2013 and from $142.7 million, or 7.32%, at June 30,
2012.
Delinquent loans that are less than 90 days past due and still
accruing interest decreased to $2.6 million at June 30, 2013, or
0.12% of gross loans, compared to $4.7 million, or 0.24% of gross
loans, at June 30, 2012. At June 30, 2013, ALLL was $59.9
million, or 2.74% of gross loans and 214.03% of NPLs, compared to
3.69% and 159.26%, respectively, at June 30, 2012. For the
second quarter of 2013, net charge-offs were $1.6 million, compared
to $2.3 million for the first quarter of 2013 and $13.4 million for
the second quarter of 2012.
Conference Call
Management will host a conference call today, July 23, 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 by dialing
1-480-629-9645 before 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 loan production offices in
Texas and 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 of Hanmi Bank to
make distributions to Hanmi Financial, which is restricted by
certain factors, including Hanmi Bank's retained earnings, net
income, prior distributions made, and certain other financial
tests; ability to identify a suitable strategic partner or to
consummate a strategic transaction; adequacy of our allowance for
loan losses; credit quality and the effect of credit quality on our
provision for 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, 2012, 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 |
Consolidated Balance
Sheets (Unaudited) |
(In thousands) |
|
|
|
|
|
|
|
June 30, |
March 31, |
Percentage |
June 30, |
Percentage |
|
2013 |
2013 |
Change |
2012 |
Change |
Assets |
|
|
|
|
|
Cash and due from banks |
$ 72,429 |
$ 69,642 |
4.0% |
$ 73,645 |
-1.7% |
Interest-bearing deposits in other
banks |
5,431 |
75,657 |
-92.8% |
197,760 |
-97.3% |
Federal funds sold |
-- |
-- |
0.0% |
33,000 |
-100.0% |
Cash and cash equivalents |
77,860 |
145,299 |
-46.4% |
304,405 |
-74.4% |
Restricted cash |
-- |
-- |
0.0% |
3,819 |
-100.0% |
Term federal funds sold |
-- |
-- |
0.0% |
110,000 |
-100.0% |
Securities available for sale, at fair
value |
400,815 |
419,903 |
-4.5% |
319,154 |
25.6% |
Securities held to maturity, at amortized
cost |
-- |
-- |
0.0% |
53,130 |
-100.0% |
Loans held for sale, at the lower of cost
or fair value |
2,553 |
6,043 |
-57.8% |
5,138 |
-50.3% |
Loans receivable, net of allowance for
loan losses |
2,128,208 |
2,061,156 |
3.3% |
1,878,367 |
13.3% |
Accrued interest receivable |
7,441 |
7,526 |
-1.1% |
7,168 |
3.8% |
Premises and equipment, net |
14,463 |
14,792 |
-2.2% |
15,912 |
-9.1% |
Other real estate owned, net |
900 |
900 |
0.0% |
1,071 |
-16.0% |
Customers' liability on acceptances |
1,372 |
2,170 |
-36.8% |
1,443 |
-4.9% |
Servicing assets |
6,383 |
6,004 |
6.3% |
5,003 |
27.6% |
Other intangible assets, net |
1,253 |
1,294 |
-3.2% |
1,417 |
-11.6% |
Investment in federal home loan bank
stock, at cost |
14,197 |
16,014 |
-11.3% |
20,687 |
-31.4% |
Investment in federal reserve bank stock,
at cost |
13,200 |
12,222 |
8.0% |
10,261 |
28.6% |
Income tax asset |
63,783 |
57,084 |
11.7% |
61,435 |
3.8% |
Bank-owned life insurance |
29,517 |
29,284 |
0.8% |
28,581 |
3.3% |
Prepaid expenses |
2,572 |
2,676 |
-3.9% |
2,726 |
-5.6% |
Other assets |
8,897 |
10,056 |
-11.5% |
16,935 |
-47.5% |
Total assets |
$ 2,773,414 |
$ 2,792,423 |
-0.7% |
$ 2,846,652 |
-2.6% |
|
|
|
|
|
|
Liabilities and Stockholders'
Equity |
|
|
|
|
|
Liabilities: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest-bearing |
$ 736,470 |
$ 709,650 |
3.8% |
$ 679,085 |
8.5% |
Interest-bearing |
1,625,443 |
1,623,362 |
0.1% |
1,706,022 |
-4.7% |
Total deposits |
2,361,913 |
2,333,012 |
1.2% |
2,385,107 |
-1.0% |
Accrued interest payable |
2,570 |
3,192 |
-19.5% |
14,882 |
-82.7% |
Bank's liability on acceptances |
1,372 |
2,170 |
-36.8% |
1,443 |
-4.9% |
Federal home loan bank advances |
2,743 |
2,840 |
-3.4% |
3,122 |
-12.1% |
Junior subordinated debentures |
-- |
51,478 |
-100.0% |
82,406 |
-100.0% |
Accrued expenses and other
liabilities |
9,420 |
10,626 |
-11.3% |
11,236 |
-16.2% |
Total liabilities |
2,378,018 |
2,403,318 |
-1.1% |
2,498,196 |
-4.8% |
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
Common stock |
257 |
257 |
0.0% |
257 |
0.0% |
Additional paid-in capital |
551,286 |
551,064 |
0.0% |
549,797 |
0.3% |
Unearned compensation |
(33) |
(44) |
-25.0% |
(116) |
-71.6% |
Accumulated other comprehensive
income |
1,634 |
5,095 |
-67.9% |
3,154 |
-48.2% |
Accumulated deficit |
(87,890) |
(97,409) |
-9.8% |
(134,778) |
-34.8% |
Less treasury stock |
(69,858) |
(69,858) |
0.0% |
(69,858) |
0.0% |
Total stockholders'
equity |
395,396 |
389,105 |
1.6% |
348,456 |
13.5% |
Total liabilities and stockholders'
equity |
$ 2,773,414 |
$ 2,792,423 |
-0.7% |
$ 2,846,652 |
-2.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial
Corporation and Subsidiaries |
Consolidated Statements
of Operations (Unaudited) |
(In thousands, except per share
data) |
|
|
|
|
|
|
|
Three
Months Ended |
|
June 30, |
March 31, |
Percentage |
June 30, |
Percentage |
|
2013 |
2013 |
Change |
2012 |
Change |
Interest and Dividend
Income: |
|
|
|
|
|
Interest and fees on loans |
$ 27,839 |
$ 26,799 |
3.9% |
$ 27,241 |
2.2% |
Taxable interest on investment
securities |
2,100 |
2,116 |
-0.8% |
2,190 |
-4.1% |
Tax-exempt interest on investment
securities |
73 |
95 |
-23.2% |
99 |
-26.3% |
Interest on term federal funds sold |
-- |
-- |
0.0% |
168 |
-100.0% |
Interest on federal funds sold |
-- |
6 |
-100.0% |
31 |
-100.0% |
Interest on interest-bearing deposits in
other banks |
24 |
88 |
-72.7% |
59 |
-59.3% |
Dividends on federal reserve bank
stock |
196 |
183 |
7.1% |
148 |
32.4% |
Dividends on federal home loan bank
stock |
147 |
108 |
36.1% |
29 |
406.9% |
Total interest and dividend income |
30,379 |
29,395 |
3.3% |
29,965 |
1.4% |
Interest Expense: |
|
|
|
|
|
Interest on deposits |
3,100 |
3,159 |
-1.9% |
3,953 |
-21.6% |
Interest on federal home loan bank
advances |
41 |
38 |
7.9% |
43 |
-4.7% |
Interest on junior subordinated
debentures |
84 |
594 |
-85.9% |
797 |
-89.5% |
Total interest expense |
3,225 |
3,791 |
-14.9% |
4,793 |
-32.7% |
Net interest income before provision for
credit losses |
27,154 |
25,604 |
6.1% |
25,172 |
7.9% |
Provision for credit losses |
-- |
-- |
0.0% |
4,000 |
-100.0% |
Net interest income after provision for
credit losses |
27,154 |
25,604 |
6.1% |
21,172 |
28.3% |
Non-Interest Income: |
|
|
|
|
|
Service charges on deposit accounts |
2,884 |
3,048 |
-5.4% |
2,936 |
-1.8% |
Insurance commissions |
1,418 |
1,213 |
16.9% |
1,294 |
9.6% |
Trade finance & other service charges
and fees |
1,152 |
1,172 |
-1.7% |
1,159 |
-0.6% |
Bank-owned life insurance income |
233 |
230 |
1.3% |
238 |
-2.1% |
Gain on sales of SBA loans guaranteed
portion |
2,378 |
2,692 |
-11.7% |
5,473 |
-56.6% |
Net loss on sales of other loans |
(460) |
(97) |
374.2% |
(5,326) |
-91.4% |
Net gain on sales of investment
securities |
303 |
9 |
3266.7% |
1,381 |
-78.1% |
Other-than-temporary impairment loss on
investment securities |
-- |
-- |
0.0% |
(116) |
-100.0% |
Other operating income |
242 |
90 |
168.9% |
150 |
61.3% |
Total non-interest income |
8,150 |
8,357 |
-2.5% |
7,189 |
13.4% |
Non-Interest Expense: |
|
|
|
|
|
Salaries and employee benefits |
9,415 |
9,351 |
0.7% |
9,449 |
-0.4% |
Occupancy and equipment |
2,555 |
2,556 |
0.0% |
2,621 |
-2.5% |
Deposit insurance premiums and regulatory
assessments |
517 |
234 |
120.9% |
1,498 |
-65.5% |
Data processing |
1,142 |
1,170 |
-2.4% |
1,298 |
-12.0% |
Other real estate owned expense |
(20) |
32 |
-162.5% |
69 |
-129.0% |
Professional fees |
2,365 |
2,156 |
9.7% |
1,089 |
117.2% |
Directors and officers liability
insurance |
219 |
220 |
-0.5% |
295 |
-25.8% |
Supplies and communications |
630 |
495 |
27.3% |
576 |
9.4% |
Advertising and promotion |
1,005 |
672 |
49.6% |
1,009 |
-0.4% |
Loan-related expense |
91 |
146 |
-37.7% |
88 |
3.4% |
Amortization of other intangible
assets |
41 |
41 |
0.0% |
45 |
-8.9% |
Other operating expenses |
2,004 |
2,094 |
-4.3% |
1,726 |
16.1% |
Total non-interest expense |
19,964 |
19,167 |
4.2% |
19,763 |
1.0% |
Income before provision for income taxes |
15,340 |
14,794 |
3.7% |
8,598 |
78.4% |
Provision (benefit) for income taxes |
5,821 |
4,684 |
24.3% |
(47,177) |
-112.3% |
Net income |
$ 9,519 |
$ 10,110 |
-5.8% |
$ 55,775 |
-82.9% |
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
Basic |
$ 0.30 |
$ 0.32 |
|
$ 1.77 |
|
Diluted |
$ 0.30 |
$ 0.32 |
|
$ 1.77 |
|
Weighted-average shares outstanding: |
|
|
|
|
|
Basic |
31,590,760 |
31,538,980 |
|
31,475,610 |
|
Diluted |
31,655,988 |
31,626,667 |
|
31,499,803 |
|
Common shares outstanding |
31,604,837 |
31,588,767 |
|
31,489,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial
Corporation and Subsidiaries |
Consolidated Statements
of Operations, Continued (Unaudited) |
(In thousands, except per share
data) |
|
|
|
|
|
Six Months
Ended |
|
June 30, |
June 30, |
Percentage |
|
2013 |
2012 |
Change |
Interest and Dividend
Income: |
|
|
|
Interest and fees on loans |
$ 54,638 |
$ 54,783 |
-0.3% |
Taxable interest on investment
securities |
4,216 |
4,288 |
-1.7% |
Tax-exempt interest on investment
securities |
168 |
201 |
-16.4% |
Interest on term federal funds sold |
-- |
493 |
-100.0% |
Interest on federal funds sold |
6 |
33 |
-81.8% |
Interest on interest-bearing deposits in
other banks |
112 |
127 |
-11.8% |
Dividends on federal reserve bank
stock |
379 |
276 |
37.3% |
Dividends on federal home loan bank
stock |
255 |
58 |
339.7% |
Total Interest and Dividend Income |
59,774 |
60,259 |
-0.8% |
Interest Expense: |
|
|
|
Interest on deposits |
6,259 |
8,872 |
-29.5% |
Interest on federal home loan bank
advances |
79 |
86 |
-8.1% |
Interest on junior subordinated
debentures |
678 |
1,596 |
-57.5% |
Total interest expense |
7,016 |
10,554 |
-33.5% |
Net interest income before provision for
credit losses |
52,758 |
49,705 |
6.1% |
Provision for credit losses |
-- |
6,000 |
-100.0% |
Net interest income after provision for
credit losses |
52,758 |
43,705 |
20.7% |
Non-Interest Income: |
|
|
|
Service charges on deposit accounts |
5,932 |
6,104 |
-2.8% |
Insurance commissions |
2,631 |
2,530 |
4.0% |
Trade finance & other service charges
and fees |
2,324 |
2,269 |
2.4% |
Bank-owned life insurance income |
463 |
637 |
-27.3% |
Gain on sales of SBA loans guaranteed
portion |
5,070 |
5,473 |
-7.4% |
Net loss on sales of other loans |
(557) |
(7,719) |
-92.8% |
Net gain on sales of investment
securities |
312 |
1,382 |
-77.4% |
Other-than-temporary impairment loss on
investment securities |
-- |
(116) |
-100.0% |
Other operating income |
332 |
262 |
26.7% |
Total non-interest income |
16,507 |
10,822 |
52.5% |
Non-Interest Expense: |
|
|
|
Salaries and employee benefits |
18,766 |
18,559 |
1.1% |
Occupancy and equipment |
5,111 |
5,216 |
-2.0% |
Deposit insurance premiums and regulatory
assessments |
751 |
2,899 |
-74.1% |
Data processing |
2,312 |
2,551 |
-9.4% |
Other real estate owned expense |
12 |
25 |
-52.0% |
Professional fees |
4,521 |
1,838 |
146.0% |
Directors and officers liability
insurance |
439 |
592 |
-25.8% |
Supplies and communications |
1,125 |
1,134 |
-0.8% |
Advertising and promotion |
1,677 |
1,610 |
4.2% |
Loan-related expense |
237 |
288 |
-17.7% |
Amortization of other intangible
assets |
82 |
116 |
-29.3% |
Other operating expenses |
4,098 |
3,681 |
11.3% |
Total non-interest expense |
39,131 |
38,509 |
1.6% |
Income before provision for income taxes |
30,134 |
16,018 |
88.1% |
Provision (benefit) for income taxes |
10,505 |
(47,098) |
-122.3% |
Net income |
$ 19,629 |
$ 63,116 |
-68.9% |
|
|
|
|
Earnings per share: |
|
|
|
Basic |
$ 0.62 |
$ 2.01 |
|
Diluted |
$ 0.62 |
$ 2.00 |
|
Weighted-average shares outstanding: |
|
|
|
Basic |
31,565,013 |
31,473,065 |
|
Diluted |
31,633,535 |
31,489,943 |
|
Common shares outstanding |
31,604,837 |
31,489,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial
Corporation and Subsidiaries |
Selected Financial
Data (Unaudited) |
(In thousands) |
|
|
|
|
|
As of or
for the Three Months Ended |
|
June 30, |
March 31, |
June 30, |
|
2013 |
2013 |
2012 |
Average balances: |
|
|
|
Average gross loans, net of deferred loan
fees (1) |
$ 2,165,741 |
$ 2,073,514 |
$ 2,003,475 |
Average investment securities |
423,562 |
443,073 |
417,202 |
Average interest-earning assets |
2,657,629 |
2,693,424 |
2,642,428 |
Average total assets |
2,793,505 |
2,829,927 |
2,723,432 |
Average deposits |
2,365,887 |
2,348,799 |
2,308,193 |
Average borrowings |
19,154 |
79,110 |
86,509 |
Average interest-bearing liabilities |
1,663,951 |
1,727,272 |
1,720,781 |
Average stockholders' equity |
393,741 |
383,003 |
300,578 |
Average tangible equity |
392,461 |
381,682 |
299,154 |
|
|
|
|
Performance ratios: |
|
|
|
Return on average assets (2) |
1.37% |
1.45% |
8.24% |
Return on average stockholders' equity
(2) |
9.70% |
10.71% |
74.63% |
Return on average tangible equity
(2) |
9.73% |
10.74% |
74.99% |
Efficiency ratio |
56.55% |
56.44% |
61.07% |
Net interest spread (2), (3) |
3.81% |
3.54% |
3.45% |
Net interest margin (2), (3) |
4.10% |
3.86% |
3.84% |
|
|
|
|
Allowance for loan
losses: |
|
|
|
Balance at beginning of period |
$ 61,191 |
$ 63,305 |
$ 81,052 |
Provision charged to operating
expense |
308 |
196 |
4,233 |
Charge-offs, net of recoveries |
(1,623) |
(2,310) |
(13,392) |
Balance at end of period |
$ 59,876 |
$ 61,191 |
$ 71,893 |
|
|
|
|
Asset quality ratios: |
|
|
|
Net loan charge-offs to average gross
loans (2) |
0.30% |
0.45% |
2.67% |
Allowance for loan losses to gross
loans |
2.74% |
2.88% |
3.69% |
Allowance for loan losses to
non-performing loans |
214.03% |
186.03% |
159.26% |
Non-performing assets to total
assets |
1.04% |
1.21% |
1.62% |
Non-performing loans to gross loans |
1.28% |
1.55% |
2.32% |
Non-performing assets to allowance for
loan losses |
48.22% |
55.23% |
64.28% |
|
|
|
|
Allowance for off-balance sheet
items: |
|
|
|
Balance at beginning of period |
$ 1,628 |
$ 1,824 |
$ 2,581 |
Provision charged to operating
expense |
(308) |
(196) |
(233) |
Balance at end of period |
$ 1,320 |
$ 1,628 |
$ 2,348 |
|
|
|
|
Non-performing assets: |
|
|
|
Non-accrual loans |
$ 27,975 |
$ 32,893 |
$ 45,143 |
Loans 90 days or more past due and still
accruing |
-- |
-- |
-- |
Non-performing loans |
27,975 |
32,893 |
45,143 |
Other real estate owned, net |
900 |
900 |
1,071 |
Non-performing assets |
28,875 |
33,793 |
46,214 |
Non-performing loans in loans held for
sale |
2,553 |
2,306 |
3,489 |
Non-performing assets (including loans
held for sale) |
$ 31,428 |
$ 36,099 |
$ 49,703 |
|
|
|
|
Delinquent loans (30 to 89
days past due and still accruing) |
$ 2,565 |
$ 6,440 |
$ 4,707 |
|
|
|
|
Delinquent loans to gross loans |
0.12% |
0.30% |
0.24% |
|
|
|
|
(1) Included loans held for
sale |
(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) |
|
|
|
|
|
As of or
for the Three Months Ended |
|
June 30, |
March 31, |
June 30, |
|
2013 |
2013 |
2012 |
Loan portfolio: |
|
|
|
Real estate loans |
$ 887,782 |
$ 831,019 |
$ 732,059 |
Residential loans |
88,654 |
94,735 |
107,757 |
Commercial and industrial loans |
1,175,573 |
1,160,752 |
1,070,469 |
Consumer loans |
35,380 |
35,180 |
39,339 |
Gross loans |
2,187,389 |
2,121,686 |
1,949,624 |
Deferred loan fees |
695 |
661 |
636 |
Gross loans, net of deferred loan
fees |
2,188,084 |
2,122,347 |
1,950,260 |
Allowance for loan losses |
(59,876) |
(61,191) |
(71,893) |
Loans receivable, net |
2,128,208 |
2,061,156 |
1,878,367 |
Loans held for sale, at the lower of cost
or fair value |
2,553 |
6,043 |
5,138 |
Total loans receivable, net |
$ 2,130,761 |
$ 2,067,199 |
$ 1,883,505 |
|
|
|
|
Loan mix: |
|
|
|
Real estate loans |
40.6% |
39.1% |
37.5% |
Residential loans |
4.1% |
4.5% |
5.5% |
Commercial and industrial loans |
53.7% |
54.7% |
54.9% |
Consumer loans |
1.6% |
1.7% |
2.1% |
Total loans |
100.0% |
100.0% |
100.0% |
|
|
|
|
Deposit portfolio: |
|
|
|
Demand-noninterest-bearing |
$ 736,470 |
$ 709,650 |
$ 679,085 |
Savings |
115,318 |
115,186 |
113,707 |
Money market checking and NOW
accounts |
575,471 |
579,192 |
557,711 |
Time deposits of $100,000 or more |
564,079 |
557,180 |
684,053 |
Other time deposits |
370,575 |
371,804 |
350,551 |
Total deposits |
$ 2,361,913 |
$ 2,333,012 |
$ 2,385,107 |
|
|
|
|
Deposit mix: |
|
|
|
Demand-noninterest-bearing |
31.1% |
30.5% |
28.5% |
Savings |
4.9% |
4.9% |
4.8% |
Money market checking and NOW
accounts |
24.4% |
24.8% |
23.4% |
Time deposits of $100,000 or more |
23.9% |
23.9% |
28.7% |
Other time deposits |
15.7% |
15.9% |
14.6% |
Total deposits |
100.0% |
100.0% |
100.0% |
|
|
|
|
Capital ratios: |
|
|
|
Hanmi Financial |
|
|
|
Total risk-based capital ratio |
16.52% |
19.45% |
20.02% |
Tier 1 risk-based capital ratio |
15.25% |
18.17% |
18.74% |
Tier 1 leverage capital ratio |
12.90% |
14.68% |
14.70% |
Tangible equity to tangible assets
ratio |
14.22% |
13.89% |
12.20% |
Hanmi Bank |
|
|
|
Total risk-based capital ratio |
16.39% |
18.69% |
19.06% |
Tier 1 risk-based capital ratio |
15.12% |
17.42% |
17.79% |
Tier 1 leverage capital ratio |
12.76% |
14.07% |
13.95% |
Tangible equity to tangible assets
ratio |
13.66% |
15.10% |
14.34% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial
Corporation and Subsidiaries |
Average Balance, Average
Yield Earned and Average Rate Paid (Unaudited) |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
June 30,
2013 |
March 31,
2013 |
June 30,
2012 |
|
|
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 |
$ 2,165,741 |
$ 27,839 |
5.16% |
$ 2,073,514 |
$ 26,799 |
5.24% |
$ 2,003,475 |
$ 27,241 |
5.47% |
Municipal securities-taxable |
46,102 |
454 |
3.94% |
46,111 |
454 |
3.94% |
44,867 |
442 |
3.94% |
Municipal securities-tax exempt |
10,707 |
112 |
4.20% |
12,803 |
146 |
4.57% |
13,011 |
152 |
4.68% |
Obligations of other U.S. government
agencies |
93,432 |
432 |
1.85% |
88,982 |
422 |
1.90% |
77,390 |
380 |
1.96% |
Other debt securities |
273,321 |
1,214 |
1.78% |
295,177 |
1,240 |
1.68% |
281,934 |
1,368 |
1.94% |
Equity securities |
28,729 |
343 |
4.78% |
30,336 |
291 |
3.84% |
31,107 |
176 |
2.26% |
Federal funds sold |
341 |
-- |
0.00% |
5,963 |
6 |
0.41% |
29,844 |
31 |
0.42% |
Term federal funds sold |
-- |
-- |
0.00% |
-- |
-- |
0.00% |
70,384 |
168 |
0.95% |
Interest-bearing deposits in other
banks |
39,256 |
24 |
0.25% |
140,538 |
88 |
0.25% |
90,416 |
59 |
0.26% |
Total interest-earning assets |
2,657,629 |
30,418 |
4.59% |
2,693,424 |
29,446 |
4.43% |
2,642,428 |
30,017 |
4.57% |
|
|
|
|
|
|
|
|
|
|
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
66,643 |
|
|
66,166 |
|
|
71,162 |
|
|
Allowance for loan losses |
(61,026) |
|
|
(62,639) |
|
|
(79,089) |
|
|
Other assets |
130,259 |
|
|
132,976 |
|
|
88,931 |
|
|
Total noninterest-earning assets |
135,876 |
|
|
136,503 |
|
|
81,004 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ 2,793,505 |
|
|
$ 2,829,927 |
|
|
$ 2,723,432 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity |
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Savings |
$ 115,685 |
$ 466 |
1.62% |
$ 114,182 |
$ 458 |
1.63% |
$ 111,685 |
$ 586 |
2.11% |
Money market checking and NOW
accounts |
591,317 |
769 |
0.52% |
567,977 |
720 |
0.51% |
514,662 |
769 |
0.60% |
Time deposits of $100,000 or more |
565,927 |
1,057 |
0.75% |
595,205 |
1,175 |
0.80% |
659,176 |
1,763 |
1.08% |
Other time deposits |
371,868 |
808 |
0.87% |
370,798 |
806 |
0.88% |
348,749 |
835 |
0.96% |
FHLB advances |
9,188 |
41 |
1.79% |
2,890 |
38 |
5.33% |
4,103 |
43 |
4.22% |
Junior subordinated debentures |
9,966 |
84 |
3.38% |
76,220 |
594 |
3.16% |
82,406 |
797 |
3.89% |
Total interest-bearing liabilities |
1,663,951 |
3,225 |
0.78% |
1,727,272 |
3,791 |
0.89% |
1,720,781 |
4,793 |
1.12% |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
Demand deposits |
721,090 |
|
|
700,637 |
|
|
673,921 |
|
|
Other liabilities |
14,723 |
|
|
19,015 |
|
|
28,152 |
|
|
Total noninterest-bearing
liabilities |
735,813 |
|
|
719,652 |
|
|
702,073 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
2,399,764 |
|
|
2,446,924 |
|
|
2,422,854 |
|
|
Stockholders' equity |
393,741 |
|
|
383,003 |
|
|
300,578 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders'
equity |
$ 2,793,505 |
|
|
$ 2,829,927 |
|
|
$ 2,723,432 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ 27,193 |
|
|
$ 25,655 |
|
|
$ 25,224 |
|
|
|
|
|
|
|
|
|
|
|
Cost of deposits |
|
|
0.53% |
|
|
0.55% |
|
|
0.69% |
Net interest spread |
|
|
3.81% |
|
|
3.54% |
|
|
3.45% |
Net interest margin |
|
|
4.10% |
|
|
3.86% |
|
|
3.84% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial
Corporation and Subsidiaries |
Average Balance, Average
Yield Earned and Average Rate Paid, Continued
(Unaudited) |
(In thousands) |
|
|
|
|
|
|
|
|
Six Months
Ended |
|
June 30,
2013 |
June 30,
2012 |
|
|
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 |
$ 2,119,881 |
$ 54,638 |
5.20% |
$ 1,994,273 |
$ 54,783 |
5.52% |
Municipal securities-taxable |
46,106 |
908 |
3.94% |
44,427 |
888 |
4.00% |
Municipal securities-tax exempt |
11,749 |
258 |
4.40% |
13,147 |
310 |
4.72% |
Obligations of other U.S. government
agencies |
91,219 |
854 |
1.87% |
75,418 |
705 |
1.87% |
Other debt securities |
284,189 |
2,454 |
1.73% |
287,743 |
2,696 |
1.87% |
Equity securities |
29,528 |
634 |
4.29% |
31,789 |
333 |
2.10% |
Federal funds sold |
3,136 |
6 |
0.39% |
15,847 |
33 |
0.37% |
Term federal funds sold |
-- |
-- |
0.00% |
98,434 |
493 |
0.94% |
Interest-bearing deposits in other
banks |
89,617 |
112 |
0.25% |
98,007 |
127 |
0.26% |
Total interest-earning assets |
2,675,425 |
59,864 |
4.51% |
2,659,085 |
60,368 |
4.57% |
|
|
|
|
|
|
|
Noninterest-earning assets: |
|
|
|
|
|
|
Cash and cash equivalents |
66,406 |
|
|
70,204 |
|
|
Allowance for loan losses |
(61,828) |
|
|
(83,557) |
|
|
Other assets |
131,611 |
|
|
86,753 |
|
|
Total noninterest-earning assets |
136,189 |
|
|
73,400 |
|
|
|
|
|
|
|
|
|
Total assets |
$ 2,811,614 |
|
|
$ 2,732,485 |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity |
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Savings |
$ 114,937 |
$ 924 |
1.62% |
$ 108,681 |
$ 1,159 |
2.14% |
Money market checking and NOW
accounts |
579,711 |
1,489 |
0.52% |
490,163 |
1,454 |
0.60% |
Time deposits of $100,000 or more |
580,485 |
2,232 |
0.78% |
720,869 |
4,511 |
1.26% |
Other time deposits |
371,336 |
1,614 |
0.88% |
343,195 |
1,747 |
1.02% |
FHLB advances |
6,056 |
79 |
2.63% |
3,681 |
86 |
4.64% |
Other Borrowings |
-- |
-- |
0.00% |
-- |
1 |
0.00% |
Junior subordinated debentures |
42,881 |
678 |
3.19% |
82,406 |
1,596 |
3.89% |
Total interest-bearing liabilities |
1,695,406 |
7,016 |
0.83% |
1,748,995 |
10,554 |
1.21% |
|
|
|
|
|
|
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
Demand deposits |
710,920 |
|
|
659,825 |
|
|
Other liabilities |
16,886 |
|
|
29,573 |
|
|
Total noninterest-bearing
liabilities |
727,806 |
|
|
689,398 |
|
|
|
|
|
|
|
|
|
Total liabilities |
2,423,212 |
|
|
2,438,393 |
|
|
Stockholders' equity |
388,402 |
|
|
294,092 |
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders'
equity |
$ 2,811,614 |
|
|
$ 2,732,485 |
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ 52,848 |
|
|
$ 49,814 |
|
|
|
|
|
|
|
|
Cost of deposits |
|
|
0.54% |
|
|
0.77% |
Net interest spread |
|
|
3.68% |
|
|
3.36% |
Net interest margin |
|
|
3.98% |
|
|
3.77% |
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) |
|
|
|
|
|
June 30, |
March 31, |
June 30, |
Hanmi Financial
Corporation |
2013 |
2013 |
2012 |
Total assets |
$ 2,773,414 |
$ 2,792,423 |
$ 2,846,652 |
Less other intangible assets |
(1,253) |
(1,294) |
(1,417) |
Tangible assets |
$ 2,772,161 |
$ 2,791,129 |
$ 2,845,235 |
|
|
|
|
Total stockholders' equity |
$ 395,396 |
$ 389,105 |
$ 348,456 |
Less other intangible assets |
(1,253) |
(1,294) |
(1,417) |
Tangible stockholders' equity |
$ 394,143 |
$ 387,811 |
$ 347,039 |
|
|
|
|
Total stockholders' equity to total
assets |
14.26% |
13.93% |
12.24% |
Tangible common equity to tangible
assets |
14.22% |
13.89% |
12.20% |
|
|
|
|
Common shares outstanding |
31,604,837 |
31,588,767 |
31,489,201 |
Tangible common equity per common
share |
$ 12.47 |
$ 12.28 |
$ 11.02 |
|
|
|
|
Hanmi Bank |
|
|
|
Total assets |
$ 2,768,581 |
$ 2,786,691 |
$ 2,841,441 |
Less other intangible assets |
-- |
-- |
-- |
Tangible assets |
$ 2,768,581 |
$ 2,786,691 |
$ 2,841,441 |
|
|
|
|
Total stockholders' equity |
$ 378,116 |
$ 420,755 |
$ 407,407 |
Less other intangible assets |
-- |
-- |
-- |
Tangible stockholders' equity |
$ 378,116 |
$ 420,755 |
$ 407,407 |
|
|
|
|
Total stockholders' equity to total
assets |
13.66% |
15.10% |
14.34% |
Tangible common equity to tangible
assets |
13.66% |
15.10% |
14.34% |
CONTACT: Hanmi Financial Corporation
Shick (Mark) Yoon
SVP & Chief Financial Officer
Direct Phone: 213-427-5636
Christina Lee
FVP, Senior Strategy Officer
Direct Phone: 213-427-5631
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