2019 First Quarter Highlights:
Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent
company of Hanmi Bank (the “Bank”), today reported net income for
the 2019 first quarter of $14.7 million, or $0.48 per diluted
share, compared with $11.4 million, or $0.37 per diluted share for
the 2018 fourth quarter and $14.9 million, or $0.46 per diluted
share for the 2018 first quarter.
C. G. Kum, Chief Executive Officer, said,
“Hanmi’s first quarter financial performance highlights the
continued execution of our strategy to grow loans in a prudent
manner, protect net interest margin and to improve the Bank’s cost
structure. During the first quarter, which is typically the
seasonally slowest quarter for loan production, new origination
volume nearly offset normal loan run-off while net interest margin
remained stable. Based on our current loan and lease pipeline, we
remain confident in our ability to grow loans in the range of 5% to
7% for the full year. Deposit gathering activities in the quarter
were also successful as total deposits expanded 6% on an annualized
basis due to growth in time and noninterest-bearing demand
deposits. In addition, we made progress in executing our previously
announced branch consolidation initiative with the closure of four
branches in the first quarter.”
Mr. Kum concluded, “I am very pleased with the
Board’s decision to appoint Bonnie Lee as CEO upon my retirement
next month. While serving as our Chief Operating Officer for the
past six years, she has developed deep relationships with Hanmi’s
customers and employees, while establishing herself as a respected
leader in our industry. Given her institutional knowledge of the
Bank, excellent track record of success and strong leadership
abilities, I am confident this will be a smooth transition as
Bonnie assumes her new role as CEO.”
Quarterly Highlights (In
thousands, except per share data)
|
As of or for the Three Months
Ended |
|
Amount Change |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
Q1-19 |
|
Q1-19 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
vs. Q4-18 |
|
vs. Q1-18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
14,672 |
|
|
$ |
11,385 |
|
|
$ |
16,081 |
|
|
$ |
15,548 |
|
|
$ |
14,855 |
|
|
$ |
3,287 |
|
|
$ |
(183 |
) |
Net income per diluted
common share |
$ |
0.48 |
|
|
$ |
0.37 |
|
|
$ |
0.50 |
|
|
$ |
0.48 |
|
|
$ |
0.46 |
|
|
$ |
0.11 |
|
|
$ |
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
5,571,068 |
|
|
$ |
5,502,219 |
|
|
$ |
5,487,042 |
|
|
$ |
5,415,202 |
|
|
$ |
5,305,641 |
|
|
$ |
68,849 |
|
|
$ |
265,427 |
|
Loans and leases
receivable |
$ |
4,575,620 |
|
|
$ |
4,600,540 |
|
|
$ |
4,582,883 |
|
|
$ |
4,542,126 |
|
|
$ |
4,413,557 |
|
|
$ |
(24,920 |
) |
|
$ |
162,063 |
|
Deposits |
$ |
4,820,175 |
|
|
$ |
4,747,235 |
|
|
$ |
4,614,422 |
|
|
$ |
4,426,535 |
|
|
$ |
4,378,101 |
|
|
$ |
72,940 |
|
|
$ |
442,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets |
|
1.09 |
% |
|
|
0.83 |
% |
|
|
1.17 |
% |
|
|
1.17 |
% |
|
|
1.16 |
% |
|
|
0.26 |
|
|
|
-0.07 |
|
Return on average
stockholders' equity |
|
10.62 |
% |
|
|
7.92 |
% |
|
|
10.91 |
% |
|
|
10.81 |
% |
|
|
10.65 |
% |
|
|
2.70 |
|
|
|
-0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(1) |
|
3.52 |
% |
|
|
3.51 |
% |
|
|
3.48 |
% |
|
|
3.60 |
% |
|
|
3.70 |
% |
|
|
0.01 |
|
|
|
-0.18 |
|
Efficiency ratio
(2) |
|
56.83 |
% |
|
|
56.40 |
% |
|
|
56.28 |
% |
|
|
57.80 |
% |
|
|
58.36 |
% |
|
|
0.43 |
|
|
|
-1.53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets (3) |
|
9.93 |
% |
|
|
9.84 |
% |
|
|
10.15 |
% |
|
|
10.35 |
% |
|
|
10.43 |
% |
|
|
0.09 |
|
|
|
-0.50 |
|
Tangible common equity
per common share (3) |
$ |
17.89 |
|
|
$ |
17.47 |
|
|
$ |
17.31 |
|
|
$ |
17.20 |
|
|
$ |
16.98 |
|
|
$ |
0.42 |
|
|
$ |
0.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts calculated on a
fully taxable equivalent basis using the federal tax rate in effect
for the periods presented.(2)
Noninterest expense divided by net interest income plus noninterest
income.(3) Refer to "Non-GAAP
Financial Measures" for further details.
Results of Operations First
quarter 2019 net interest income decreased 1.7% to $44.9 million
from $45.6 million in the 2018 fourth quarter principally due to
two fewer days quarter-over-quarter. Interest and fees on loans and
leases for the first quarter increased 0.7%, or $0.4 million, from
the preceding quarter due to an increase in the average yield and
an increase in loan prepayment fees. In addition, borrowing costs
decreased $0.3 million in the first quarter as deposits increased
and borrowings declined. However, this was partially offset by an
increase in interest expense on deposits of 10.9%, or $1.5 million,
from the preceding quarter due to a 3.4% increase in average
interest-bearing deposits.
|
As of or For the Three Months Ended (in
thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-19 |
|
Q1-19 |
Net Interest
Income |
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
vs. Q4-18 |
|
vs. Q1-18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans and leases(1) |
$ |
58,334 |
|
$ |
57,947 |
|
$ |
56,361 |
|
$ |
53,708 |
|
$ |
51,574 |
|
0.7 |
% |
|
13.1 |
% |
Interest on
securities |
|
3,456 |
|
|
3,278 |
|
|
3,238 |
|
|
3,198 |
|
|
3,105 |
|
5.4 |
% |
|
11.3 |
% |
Dividends on FHLB
stock |
|
289 |
|
|
555 |
|
|
286 |
|
|
283 |
|
|
289 |
|
-47.9 |
% |
|
0.0 |
% |
Interest on deposits in
other banks |
|
335 |
|
|
179 |
|
|
151 |
|
|
133 |
|
|
114 |
|
87.2 |
% |
|
193.9 |
% |
Total
interest and dividend income |
$ |
62,414 |
|
$ |
61,959 |
|
$ |
60,036 |
|
$ |
57,322 |
|
$ |
55,082 |
|
0.7 |
% |
|
13.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits |
|
15,683 |
|
|
14,139 |
|
|
11,694 |
|
|
9,465 |
|
|
7,785 |
|
10.9 |
% |
|
101.5 |
% |
Interest on
borrowings |
|
71 |
|
|
420 |
|
|
1,264 |
|
|
1,015 |
|
|
679 |
|
-83.1 |
% |
|
-89.5 |
% |
Interest on
subordinated debentures |
|
1,772 |
|
|
1,754 |
|
|
1,749 |
|
|
1,728 |
|
|
1,694 |
|
1.0 |
% |
|
4.6 |
% |
Total
interest expense |
|
17,526 |
|
|
16,313 |
|
|
14,707 |
|
|
12,208 |
|
|
10,158 |
|
7.4 |
% |
|
72.5 |
% |
Net interest
income |
$ |
44,888 |
|
$ |
45,646 |
|
$ |
45,329 |
|
$ |
45,114 |
|
$ |
44,924 |
|
-1.7 |
% |
|
-0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
loans held for sale.
Net interest margin on a tax equivalent basis
was 3.52% for the first quarter of 2019 compared with 3.51% for the
fourth quarter of 2018, as higher average yields on loans and
leases receivable primarily due to market interest rates and
competition were offset by higher costs of deposits. Net interest
margin adjusted for loan prepayment penalties and the special FHLB
dividend was 3.46% for the first quarter and prior quarter.
The average earning asset yield (tax equivalent)
was 4.89% for the first quarter of 2019 compared with 4.76% for the
fourth quarter of 2018. The 13 basis point increase was due to the
increase in average yields for loans and leases receivable.
The cost of interest-bearing liabilities was
1.98% for the first quarter of 2019 compared with 1.83% for the
fourth quarter of 2018. The 15 basis point increase was primarily
due to a 17 basis point increase in the average rate paid on
interest-bearing deposits and a 3.4% increase in interest-bearing
deposits.
|
For the Three Months Ended (in
thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-19 |
|
Q1-19 |
Average Earning
Assets and Interest-bearing Liabilities |
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
vs. Q4-18 |
|
vs. Q1-18 |
Loans and leases
receivable (1) |
$ |
4,533,120 |
|
$ |
4,544,722 |
|
$ |
4,551,284 |
|
$ |
4,414,217 |
|
$ |
4,310,964 |
|
-0.3 |
% |
|
5.2 |
% |
Securities |
|
589,547 |
|
|
581,550 |
|
|
589,939 |
|
|
591,493 |
|
|
588,738 |
|
1.4 |
% |
|
0.1 |
% |
FHLB stock |
|
16,385 |
|
|
16,385 |
|
|
16,385 |
|
|
16,385 |
|
|
16,385 |
|
0.0 |
% |
|
0.0 |
% |
Interest-bearing
deposits in other banks |
|
53,022 |
|
|
34,301 |
|
|
30,368 |
|
|
28,831 |
|
|
32,401 |
|
54.6 |
% |
|
63.6 |
% |
Average
interest-earning assets |
$ |
5,192,074 |
|
$ |
5,176,958 |
|
$ |
5,187,976 |
|
$ |
5,050,926 |
|
$ |
4,948,488 |
|
0.3 |
% |
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand:
interest-bearing |
$ |
85,291 |
|
$ |
89,971 |
|
$ |
92,090 |
|
$ |
92,552 |
|
$ |
91,378 |
|
-5.2 |
% |
|
-6.7 |
% |
Money market and
savings |
|
1,526,710 |
|
|
1,510,428 |
|
|
1,377,739 |
|
|
1,412,118 |
|
|
1,478,795 |
|
1.1 |
% |
|
3.2 |
% |
Time deposits |
|
1,852,562 |
|
|
1,751,429 |
|
|
1,687,827 |
|
|
1,553,692 |
|
|
1,440,382 |
|
5.8 |
% |
|
28.6 |
% |
Average
interest-bearing deposits |
|
3,464,563 |
|
|
3,351,828 |
|
|
3,157,656 |
|
|
3,058,362 |
|
|
3,010,555 |
|
3.4 |
% |
|
15.1 |
% |
Borrowings |
|
10,611 |
|
|
65,217 |
|
|
240,054 |
|
|
214,066 |
|
|
179,000 |
|
-83.7 |
% |
|
-94.1 |
% |
Subordinated
debentures |
|
117,863 |
|
|
117,728 |
|
|
117,584 |
|
|
117,456 |
|
|
117,323 |
|
0.1 |
% |
|
0.5 |
% |
Average
interest-bearing liabilities |
$ |
3,593,037 |
|
$ |
3,534,773 |
|
$ |
3,515,294 |
|
$ |
3,389,884 |
|
$ |
3,306,878 |
|
1.6 |
% |
|
8.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
loans held for sale.
|
For the Three Months Ended |
|
Amount Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-19 |
|
Q1-19 |
Average Yields
and Rates |
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
vs. Q4-18 |
|
vs. Q1-18 |
Loans and leases
receivable(1) |
5.22 |
% |
|
5.06 |
% |
|
4.91 |
% |
|
4.88 |
% |
|
4.85 |
% |
|
0.16 |
|
0.37 |
Securities (2) |
2.44 |
% |
|
2.37 |
% |
|
2.31 |
% |
|
2.29 |
% |
|
2.24 |
% |
|
0.07 |
|
0.20 |
FHLB stock |
7.15 |
% |
|
13.44 |
% |
|
6.93 |
% |
|
6.93 |
% |
|
7.15 |
% |
|
-6.29 |
|
0.00 |
Interest-bearing
deposits in other banks |
2.56 |
% |
|
2.07 |
% |
|
1.97 |
% |
|
1.85 |
% |
|
1.43 |
% |
|
0.49 |
|
1.13 |
Interest-earning
assets |
4.89 |
% |
|
4.76 |
% |
|
4.60 |
% |
|
4.57 |
% |
|
4.53 |
% |
|
0.13 |
|
0.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits |
1.84 |
% |
|
1.67 |
% |
|
1.47 |
% |
|
1.24 |
% |
|
1.05 |
% |
|
0.17 |
|
0.79 |
Borrowings |
2.71 |
% |
|
2.56 |
% |
|
2.09 |
% |
|
1.90 |
% |
|
1.54 |
% |
|
0.15 |
|
1.17 |
Subordinated
debentures |
6.01 |
% |
|
5.94 |
% |
|
5.92 |
% |
|
5.87 |
% |
|
5.77 |
% |
|
0.07 |
|
0.24 |
Interest-bearing
liabilities |
1.98 |
% |
|
1.83 |
% |
|
1.66 |
% |
|
1.44 |
% |
|
1.25 |
% |
|
0.15 |
|
0.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(taxable equivalent basis) |
3.52 |
% |
|
3.51 |
% |
|
3.48 |
% |
|
3.60 |
% |
|
3.70 |
% |
|
0.01 |
|
-0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of deposits |
1.35 |
% |
|
1.20 |
% |
|
1.04 |
% |
|
0.87 |
% |
|
0.73 |
% |
|
0.15 |
|
0.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
loans held for sale.(2) Amounts
calculated on a fully taxable equivalent basis using the federal
tax rate in effect for the periods presented.
For the first quarter of 2019, the loan and
lease loss provision was $1.1 million compared with $3.0 million
for the preceding quarter. Net charge-offs declined to $0.2 million
for the first quarter of 2019 from $2.7 million from the fourth
quarter of 2018. The allowance to loans and leases rose to 0.72% at
the end of the first quarter from 0.70% at year-end.
First quarter noninterest income decreased 0.7%
to $6.3 million from the fourth quarter, primarily due to a $0.3
million decrease in service charges on deposit accounts and a $0.3
million decrease in servicing income. The decline in servicing
income reflects a higher level of prepayments in the serviced
assets. This was partially offset by a $0.7 million increase in
gain on sales of securities. This increase was due to the sale of
$69.2 million of tax-exempt municipal bonds in the first quarter,
with the resulting proceeds invested in U.S. Treasury bills and
U.S. Government agency mortgage-backed securities. Gains on sales
of SBA loans were $0.9 million for the first quarter, down from
$1.0 million for the preceding quarter reflecting higher trade
premiums offset by lower volume. The volume of SBA loans sold for
the first quarter 2019 and fourth quarter 2018 were $15.5 million
and $17.9 million, respectively.
|
For the Three Months Ended (in
thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-19 |
|
Q1-19 |
Noninterest
Income |
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
vs. Q4-18 |
|
vs. Q1-18 |
Service charges on
deposit accounts |
$ |
2,358 |
|
$ |
2,648 |
|
$ |
2,513 |
|
$ |
2,328 |
|
$ |
2,511 |
|
|
-11.0 |
% |
|
-6.1 |
% |
Trade finance and other
service charges and fees |
|
1,124 |
|
|
1,167 |
|
|
1,128 |
|
|
1,149 |
|
|
1,173 |
|
|
-3.7 |
% |
|
-4.2 |
% |
Servicing income |
|
357 |
|
|
630 |
|
|
673 |
|
|
421 |
|
|
662 |
|
|
-43.3 |
% |
|
-46.1 |
% |
Bank-owned life
insurance income |
|
280 |
|
|
288 |
|
|
285 |
|
|
256 |
|
|
277 |
|
|
-2.8 |
% |
|
1.1 |
% |
Other operating
income |
|
484 |
|
|
584 |
|
|
483 |
|
|
316 |
|
|
418 |
|
|
-17.1 |
% |
|
15.8 |
% |
Service
charges, fees & other |
|
4,603 |
|
|
5,317 |
|
|
5,082 |
|
|
4,470 |
|
|
5,041 |
|
|
-13.4 |
% |
|
-8.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of SBA
loans |
|
926 |
|
|
983 |
|
|
1,114 |
|
|
1,408 |
|
|
1,448 |
|
|
-5.8 |
% |
|
-36.0 |
% |
Net gain (loss) on
sales of securities |
|
725 |
|
|
- |
|
|
19 |
|
|
67 |
|
|
(428 |
) |
|
0.0 |
% |
|
-269.4 |
% |
Total
noninterest income |
$ |
6,254 |
|
$ |
6,300 |
|
$ |
6,215 |
|
$ |
5,945 |
|
$ |
6,061 |
|
|
-0.7 |
% |
|
3.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense for the first quarter
decreased 0.8% to $29.1 million from $29.3 million for the prior
quarter primarily due to a $0.4 million decrease in other operating
expenses and a $0.6 million decrease in advertising and promotion,
partially offset by a $0.5 million increase in other real estate
owned expense and a $0.4 million increase in occupancy and
equipment of which approximately $0.3 million was related to
one-time expenses associated with the consolidation of four
branches during the quarter. Despite the decrease in noninterest
expense, as a result of the decrease in revenues (noninterest
income and net interest income), the efficiency ratio increased
slightly to 56.8% in the first quarter from 56.4% in the prior
quarter.
|
For the Three Months Ended (in
thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-19 |
|
Q1-19 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
vs. Q4-18 |
|
vs. Q1-18 |
Noninterest
Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
$ |
15,738 |
|
$ |
15,845 |
|
|
$ |
17,436 |
|
|
$ |
17,453 |
|
$ |
18,702 |
|
-0.7 |
% |
|
-15.8 |
% |
Occupancy and
equipment |
|
4,521 |
|
|
4,105 |
|
|
|
3,685 |
|
|
|
4,082 |
|
|
4,072 |
|
10.1 |
% |
|
11.0 |
% |
Data processing |
|
2,083 |
|
|
1,894 |
|
|
|
1,745 |
|
|
|
1,554 |
|
|
1,678 |
|
10.0 |
% |
|
24.1 |
% |
Professional fees |
|
1,649 |
|
|
1,969 |
|
|
|
1,626 |
|
|
|
1,214 |
|
|
1,369 |
|
-16.3 |
% |
|
20.5 |
% |
Supplies and
communication |
|
844 |
|
|
797 |
|
|
|
805 |
|
|
|
693 |
|
|
708 |
|
5.9 |
% |
|
19.2 |
% |
Advertising and
promotion |
|
760 |
|
|
1,316 |
|
|
|
814 |
|
|
|
1,034 |
|
|
876 |
|
-42.2 |
% |
|
-13.2 |
% |
Merger and integration
costs |
|
- |
|
|
- |
|
|
|
466 |
|
|
|
380 |
|
|
- |
|
0.0 |
% |
|
0.0 |
% |
Other operating
expenses |
|
3,389 |
|
|
3,751 |
|
|
|
2,872 |
|
|
|
2,854 |
|
|
2,273 |
|
-9.7 |
% |
|
49.1 |
% |
subtotal |
|
28,984 |
|
|
29,677 |
|
|
|
29,449 |
|
|
|
29,264 |
|
|
29,678 |
|
-2.3 |
% |
|
-2.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate owned
expense (income) |
|
81 |
|
|
(378 |
) |
|
|
(441 |
) |
|
|
246 |
|
|
79 |
|
-121.4 |
% |
|
2.5 |
% |
Total
noninterest expense |
$ |
29,065 |
|
$ |
29,299 |
|
|
$ |
29,008 |
|
|
$ |
29,510 |
|
$ |
29,757 |
|
-0.8 |
% |
|
-2.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi recorded a provision for income taxes of
$6.3 million for the first quarter of 2019, representing an
effective tax rate of 30.0% compared with $8.2 million,
representing an effective tax rate of 41.9% for the fourth quarter
of 2018. First quarter income tax expense included a $0.4
million charge related to the settlement of the California 2008 and
2009 tax year audits with the Franchise Tax Board. Fourth quarter
income tax expense included a net charge of $2.7 million,
reflecting charges for a state deferred tax valuation allowance and
the finalization of the re-measurement of deferred tax assets due
to the change in the Federal corporate tax rate, offset by a
benefit due to a lapse of the statute of limitations for certain
unrecognized tax benefits.
Financial PositionTotal assets
were $5.57 billion at March 31, 2019, a 1.3% increase from $5.50
billion at December 31, 2018 from an increase in securities
available for sale at fair value and the adoption of ASC 842, the
new accounting standard for leases. On January 1, 2019, Hanmi
adopted ASC 842 – Lease Accounting (ASU 2016-02) and recorded a
Right-of-Use Asset (ROUA) on Leases and a Lease Liability of $40.9
million, respectively. As of March 31, 2019, the ROUA on
Leases was $39.3 million and the Lease Liability was $39.5 million.
These amounts were included in ‘Prepaid expenses and other assets’
and ‘Accrual expenses and other liabilities,’ respectively.
Loans and leases receivable, before the
allowance for loan and lease losses, were $4.58 billion at March
31, 2019, down 0.5% from $4.60 billion at December 31, 2018. The
decrease in loans and leases from the prior quarter reflects the
seasonality of loan production as well as Hanmi’s strategic
decision to moderate loan growth, protect net interest margin and
reduce expenses given the increasingly challenging banking
environment. Loans held for sale, representing the guaranteed
portion of SBA loans, were $7.1 million at March 31, 2019 compared
with $9.4 million at the end of 2018.
Loans and leases receivable, before the
allowance for loan and lease losses, increased 3.7% from $4.41
billion at March 31, 2018, primarily due to production.
|
As of (in thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-19 |
|
Q1-19 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
vs. Q4-18 |
|
vs. Q1-18 |
Loan and Lease
Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans |
$ |
3,230,526 |
|
$ |
3,257,792 |
|
$ |
3,275,382 |
|
$ |
3,241,348 |
|
$ |
3,122,745 |
|
-0.8 |
% |
|
3.5 |
% |
Residential real estate
loans |
|
483,830 |
|
|
500,563 |
|
|
516,968 |
|
|
539,861 |
|
|
545,053 |
|
-3.3 |
% |
|
-11.2 |
% |
Commercial and
industrial loans |
|
422,502 |
|
|
429,903 |
|
|
396,383 |
|
|
396,522 |
|
|
409,380 |
|
-1.7 |
% |
|
3.2 |
% |
Lease receivable |
|
425,530 |
|
|
398,858 |
|
|
379,455 |
|
|
350,578 |
|
|
321,480 |
|
6.7 |
% |
|
32.4 |
% |
Consumer loans |
|
13,232 |
|
|
13,424 |
|
|
14,695 |
|
|
13,817 |
|
|
14,899 |
|
-1.4 |
% |
|
-11.2 |
% |
Loans and
leases receivable |
|
4,575,620 |
|
|
4,600,540 |
|
|
4,582,883 |
|
|
4,542,126 |
|
|
4,413,557 |
|
-0.5 |
% |
|
3.7 |
% |
Loans held for
sale |
|
7,140 |
|
|
9,390 |
|
|
4,455 |
|
|
5,349 |
|
|
6,008 |
|
-24.0 |
% |
|
18.8 |
% |
Total
loans and leases |
$ |
4,582,760 |
|
$ |
4,609,930 |
|
$ |
4,587,338 |
|
$ |
4,547,475 |
|
$ |
4,419,565 |
|
-0.6 |
% |
|
3.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the first quarter of 2019, commercial real
estate loans as a percentage of loans and leases receivable
decreased to 70.6% compared with 70.8% for the same period last
year.
Bonnie Lee, President and Chief Operating
Officer, said, “While loan production is seasonally slowest in the
first quarter, our performance is also indicative of being
extremely selective in originating new credits with respect to
pricing and underwriting. Given the highly competitive
environment, I am quite pleased with our stable net interest margin
and continued strong credit quality. Overall, our production
outlook remains positive and we continue to expect to generate 5%
to 7% growth in attractively priced, high quality loans and leases
for the full year.”
Commenting on her recent promotion, Ms. Lee
concluded, “I am honored to serve on Hanmi’s Board of Directors and
very grateful to the Board’s confidence in my abilities. C. G. Kum
has been an excellent colleague, friend and mentor since I joined
Hanmi in 2013. I look forward to serving as the Bank’s next CEO
upon his retirement next month, and I wish him all the best in his
well-deserved retirement.”
|
For the Three Months Ended (in
thousands) |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
New Loan &
Lease Production |
|
|
|
|
|
|
|
|
|
Commercial real estate
loans |
$ |
46,531 |
|
|
$ |
87,523 |
|
|
$ |
112,748 |
|
|
$ |
198,314 |
|
|
$ |
136,633 |
|
Commercial and
industrial loans |
|
33,643 |
|
|
|
68,113 |
|
|
|
32,714 |
|
|
|
19,226 |
|
|
|
27,426 |
|
SBA loans |
|
29,976 |
|
|
|
30,758 |
|
|
|
25,388 |
|
|
|
29,649 |
|
|
|
25,081 |
|
Lease receivable |
|
69,577 |
|
|
|
59,023 |
|
|
|
64,284 |
|
|
|
60,308 |
|
|
|
54,952 |
|
Consumer loans |
|
122 |
|
|
|
831 |
|
|
|
2,873 |
|
|
|
1,327 |
|
|
|
1,189 |
|
subtotal |
|
179,849 |
|
|
|
246,248 |
|
|
|
238,007 |
|
|
|
308,824 |
|
|
|
245,281 |
|
|
|
|
|
|
|
|
|
|
|
Loan purchases |
|
- |
|
|
|
- |
|
|
|
2,160 |
|
|
|
25,901 |
|
|
|
38,905 |
|
Payoffs, amortization
& net line utilization |
|
(188,203 |
) |
|
|
(206,606 |
) |
|
|
(177,799 |
) |
|
|
(186,234 |
) |
|
|
(154,268 |
) |
Loan sales |
|
(15,459 |
) |
|
|
(18,210 |
) |
|
|
(19,751 |
) |
|
|
(19,185 |
) |
|
|
(19,187 |
) |
Charge-offs |
|
(1,107 |
) |
|
|
(3,775 |
) |
|
|
(1,245 |
) |
|
|
(657 |
) |
|
|
(1,632 |
) |
Other real estate
owned |
|
- |
|
|
|
- |
|
|
|
(615 |
) |
|
|
(80 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Loans and
leases-beginning balance |
$ |
4,600,540 |
|
|
$ |
4,582,883 |
|
|
$ |
4,542,126 |
|
|
$ |
4,413,557 |
|
|
$ |
4,304,458 |
|
Loans and leases-ending
balance |
$ |
4,575,620 |
|
|
$ |
4,600,540 |
|
|
$ |
4,582,883 |
|
|
$ |
4,542,126 |
|
|
$ |
4,413,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits increased to $4.82 billion at the end
of the 2019 first quarter from $4.75 billion at the end of the
preceding quarter. Time deposits and noninterest-bearing demand
deposits led this growth with increases of 4.1% and 2.5%,
respectively. The loan-to-deposit ratio at March 31, 2019 decreased
to 94.9% from 96.9% in the fourth quarter.
Deposits increased 10.1% from $4.38 billion in
the first quarter last year, as time deposits and money market and
savings deposits increased 28.1% and 5.1%, respectively, from a
year ago.
|
As of (in thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-19 |
|
Q1-19 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
vs. Q4-18 |
|
vs. Q1-18 |
Deposit
Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand:
noninterest-bearing |
$ |
1,316,114 |
|
$ |
1,284,530 |
|
$ |
1,313,777 |
|
$ |
1,350,383 |
|
$ |
1,352,162 |
|
2.5 |
% |
|
-2.7 |
% |
Demand:
interest-bearing |
|
85,946 |
|
|
87,582 |
|
|
90,586 |
|
|
105,825 |
|
|
93,591 |
|
-1.9 |
% |
|
-8.2 |
% |
Money market and
savings |
|
1,543,299 |
|
|
1,573,622 |
|
|
1,478,631 |
|
|
1,381,038 |
|
|
1,469,010 |
|
-1.9 |
% |
|
5.1 |
% |
Time deposits |
|
1,874,816 |
|
|
1,801,501 |
|
|
1,731,428 |
|
|
1,589,289 |
|
|
1,463,338 |
|
4.1 |
% |
|
28.1 |
% |
Total
deposits |
$ |
4,820,175 |
|
$ |
4,747,235 |
|
$ |
4,614,422 |
|
$ |
4,426,535 |
|
$ |
4,378,101 |
|
1.5 |
% |
|
10.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At March 31, 2019, stockholders’ equity was
$564.3 million, compared with $552.6 million at December 31, 2018.
Tangible common stockholders’ equity was $552.2 million, or 9.93%
of tangible assets, compared with $540.4 million, or 9.84% of
tangible assets at December 31, 2018. Tangible book value per share
was $17.89, compared to $17.47 in the fourth quarter.
Hanmi continues to be well capitalized, with a
preliminary Tier 1 risk-based capital ratio of 11.84% and a total
risk-based capital ratio of 14.63% at March 31, 2019, versus 11.74%
and 14.54%, respectively, at year-end 2018.
|
As of |
|
Amount Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-19 |
|
Q1-19 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
vs. Q4-18 |
|
vs. Q1-18 |
Regulatory
Capital ratios (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based
capital |
14.63 |
% |
|
14.54 |
% |
|
15.01 |
% |
|
15.17 |
% |
|
15.43 |
% |
|
0.09 |
|
-0.80 |
Tier 1
risk-based capital |
11.84 |
% |
|
11.74 |
% |
|
12.21 |
% |
|
12.35 |
% |
|
12.52 |
% |
|
0.10 |
|
-0.68 |
Common
equity tier 1 capital |
11.43 |
% |
|
11.32 |
% |
|
11.79 |
% |
|
11.93 |
% |
|
12.09 |
% |
|
0.11 |
|
-0.66 |
Tier 1
leverage capital ratio |
10.39 |
% |
|
10.18 |
% |
|
10.53 |
% |
|
10.83 |
% |
|
10.88 |
% |
|
0.21 |
|
-0.49 |
Hanmi Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
risk-based capital |
14.25 |
% |
|
14.19 |
% |
|
14.76 |
% |
|
14.86 |
% |
|
15.13 |
% |
|
0.06 |
|
-0.88 |
Tier 1
risk-based capital |
13.53 |
% |
|
13.47 |
% |
|
14.05 |
% |
|
14.15 |
% |
|
14.39 |
% |
|
0.06 |
|
-0.86 |
Common
equity tier 1 capital |
13.53 |
% |
|
13.47 |
% |
|
14.05 |
% |
|
14.15 |
% |
|
14.39 |
% |
|
0.06 |
|
-0.86 |
Tier 1
leverage capital ratio |
11.88 |
% |
|
11.67 |
% |
|
12.11 |
% |
|
12.42 |
% |
|
12.51 |
% |
|
0.21 |
|
-0.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Preliminary ratios for March 31, 2019
Hanmi declared a cash dividend of $0.24 per
common share on its common stock in the 2019 first quarter. The
dividend was paid on February 28, 2019, to stockholders of record
as of the close of business on January 30, 2019.
Asset Quality Loans and leases
30 to 89 days past due and still accruing were 0.20% of loans and
leases at the end of the first quarter of 2019, compared with 0.23%
at the end of the fourth quarter.
Nonperforming loans and leases were $40.0
million at the end of the first quarter of 2019, or 0.88% of loans
and leases compared with $15.5 million at the end of 2018, or 0.34%
of the portfolio. The increase in nonaccrual loans and leases
reflects the addition of a $25.0 million commercial loan
relationship, primarily secured by business assets and to a
lesser extent commercial real estate, which recently experienced an
interruption to their business. Hanmi has established a
specific allowance of $3.0 million at March 31, 2019 for this
relationship, is working closely with the borrower and expects to
achieve a resolution as soon as possible.
Nonperforming assets were $40.7 million at the
end of the first quarter of 2019, or 0.73% of assets, compared to
$16.2 million, or 0.29% of assets, at the end of the prior
quarter.
Gross charge-offs for the first quarter of 2019
were $1.1 million compared with $3.8 million for the preceding
quarter. Recoveries of previously charged-off loans and leases for
the first quarter of 2019 were $0.9 million compared with $1.0
million for the preceding quarter. As a result, there were net
charge-offs of $0.2 million for the first quarter of 2019, compared
to net charge-offs of $2.7 million for the preceding quarter. For
the first quarter of 2019, net charge-offs were 0.02% of average
loans and leases compared with net charge-offs of 0.24% for the
preceding quarter.
The allowance for loan and lease losses was
$32.9 million as of March 31, 2019, generating an allowance for
loan and lease losses to loans and leases of 0.72% compared with
0.70% in the prior quarter.
|
As of or for the Three Months Ended (in
thousands) |
|
Amount Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-19 |
|
Q1-19 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
vs. Q4-18 |
|
vs. Q1-18 |
Asset
Quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans and
leases |
$ |
40,041 |
|
|
$ |
15,525 |
|
|
$ |
18,283 |
|
|
$ |
15,804 |
|
|
$ |
15,345 |
|
|
$ |
24,516 |
|
|
$ |
24,696 |
|
Loans and leases 90
days or more past due and still accruing |
|
- |
|
|
|
4 |
|
|
|
- |
|
|
|
- |
|
|
|
17 |
|
|
|
(4 |
) |
|
|
(17 |
) |
Nonperforming loans and
leases |
|
40,041 |
|
|
|
15,529 |
|
|
|
18,283 |
|
|
|
15,804 |
|
|
|
15,362 |
|
|
|
24,512 |
|
|
|
24,679 |
|
Other real estate,
net |
|
622 |
|
|
|
663 |
|
|
|
877 |
|
|
|
280 |
|
|
|
1,660 |
|
|
|
(41 |
) |
|
|
(1,038 |
) |
Nonperforming
assets |
$ |
40,663 |
|
|
$ |
16,192 |
|
|
$ |
19,160 |
|
|
$ |
16,084 |
|
|
$ |
17,022 |
|
|
$ |
24,471 |
|
|
$ |
23,641 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquent loan
and leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases, 30 to
89 days past due and still accruing |
$ |
9,242 |
|
|
$ |
10,674 |
|
|
$ |
6,901 |
|
|
$ |
9,089 |
|
|
$ |
7,270 |
|
|
$ |
(1,432 |
) |
|
$ |
1,972 |
|
Delinquent loans and
leases to loans and leases |
|
0.20 |
% |
|
|
0.23 |
% |
|
|
0.15 |
% |
|
|
0.20 |
% |
|
|
0.16 |
% |
|
|
-0.03 |
|
|
|
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
loan and lease losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period |
$ |
31,974 |
|
|
$ |
31,676 |
|
|
$ |
31,818 |
|
|
$ |
31,777 |
|
|
$ |
31,043 |
|
|
|
|
|
Loan and lease loss
provision |
|
1,117 |
|
|
|
3,041 |
|
|
|
200 |
|
|
|
100 |
|
|
|
649 |
|
|
|
|
|
Net loan and lease
charge-offs (recoveries) |
|
195 |
|
|
|
2,743 |
|
|
|
342 |
|
|
|
59 |
|
|
|
(85 |
) |
|
|
|
|
Balance
at end of period |
$ |
32,896 |
|
|
$ |
31,974 |
|
|
$ |
31,676 |
|
|
$ |
31,818 |
|
|
$ |
31,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans and
leases to loans and leases |
|
0.88 |
% |
|
|
0.34 |
% |
|
|
0.40 |
% |
|
|
0.35 |
% |
|
|
0.35 |
% |
|
|
|
|
Nonperforming assets to
assets |
|
0.73 |
% |
|
|
0.29 |
% |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.32 |
% |
|
|
|
|
Net loan and lease
charge-offs (recoveries) to average loans and leases (1) |
|
0.02 |
% |
|
|
0.24 |
% |
|
|
0.03 |
% |
|
|
0.01 |
% |
|
|
-0.01 |
% |
|
|
|
|
Allowance for loan and
lease losses to loans and leases |
|
0.72 |
% |
|
|
0.70 |
% |
|
|
0.69 |
% |
|
|
0.70 |
% |
|
|
0.72 |
% |
|
|
|
|
Allowance for loan and
lease losses to nonperforming loans and leases |
|
82.16 |
% |
|
|
205.90 |
% |
|
|
173.25 |
% |
|
|
201.33 |
% |
|
|
206.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
off-balance sheet items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period |
$ |
1,439 |
|
|
$ |
1,357 |
|
|
$ |
1,357 |
|
|
$ |
1,323 |
|
|
$ |
1,296 |
|
|
|
|
|
Provision (income) for
off-balance sheet items |
|
(338 |
) |
|
|
82 |
|
|
|
- |
|
|
|
34 |
|
|
|
27 |
|
|
|
|
|
Balance
at end of period |
$ |
1,101 |
|
|
$ |
1,439 |
|
|
$ |
1,357 |
|
|
$ |
1,357 |
|
|
$ |
1,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Annualized
Conference CallManagement will
host a conference call today, April 23, 2019 at 2:00 p.m. PT (5:00
p.m. ET) to discuss these results. This call will also be broadcast
live via the internet. Investment professionals and all current and
prospective stockholders are invited to access the live call by
dialing 1-877-407-9039 before 2:00 p.m. PT, using access code
HANMI. To listen to the call online, either live or archived, visit
the Investor Relations page of Hanmi’s website
at www.hanmi.com.
About Hanmi Financial
CorporationHeadquartered in Los Angeles, California, Hanmi
Financial Corporation owns Hanmi Bank, which serves multi-ethnic
communities through its network of 35 full-service branches and 9
loan production offices in California, Texas, Illinois, Virginia,
New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank
specializes in real estate, commercial, SBA and trade finance
lending to small and middle market businesses. Additional
information is available at www.hanmi.com.
Forward-Looking Statements This
press release contains forward-looking statements, which are
included in accordance with the “safe harbor” provisions of the
Private Securities Litigation Reform Act of 1995. In some cases,
you can identify forward-looking statements by terminology such as
“may,” “will,” “should,” “could,” “expects,” “plans,” “intends,”
“anticipates,” “believes,” “estimates,” “predicts,” “potential,” or
“continue,” or the negative of such terms and other comparable
terminology. Although we believe that the expectations reflected in
the forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or achievements.
All statements other than statements of historical fact are
“forward–looking statements” for purposes of federal and state
securities laws, including, but not limited to, statements about
anticipated future operating and financial performance, financial
position and liquidity, business strategies, regulatory and
competitive outlook, investment and expenditure plans, capital and
financing needs and availability, plans and objectives of
management for future operations, developments regarding our
capital plans, strategic alternatives for a possible business
combination, merger or sale transaction, and other similar
forecasts and statements of expectation and statements of
assumption underlying any of the foregoing. These statements
involve known and unknown risks, uncertainties and other factors
that may cause our actual results, levels of activity, performance
or achievements to differ from those expressed or implied by the
forward-looking statement. These factors include the following:
failure to maintain adequate levels of capital and liquidity to
support our operations; the effect of potential future supervisory
action against us or Hanmi Bank; general economic and business
conditions internationally, nationally and in those areas in which
we operate; volatility and deterioration in the credit and equity
markets; changes in consumer spending, borrowing and savings
habits; availability of capital from private and government
sources; demographic changes; competition for loans and deposits
and failure to attract or retain loans and deposits; fluctuations
in interest rates and a decline in the level of our interest rate
spread; risks of natural disasters related to our real estate
portfolio; risks associated with Small Business Administration
loans; failure to attract or retain key employees; changes in
governmental regulation, including, but not limited to, any
increase in FDIC insurance premiums; ability of Hanmi Bank to make
distributions to Hanmi Financial Corporation, which is restricted
by certain factors, including Hanmi Bank’s retained earnings, net
income, prior distributions made, and certain other financial
tests; ability to identify a suitable strategic partner or to
consummate a strategic transaction; adequacy of our allowance for
loan and lease losses; credit quality and the effect of credit
quality on our provision for loan and lease losses and allowance
for loan and lease losses; changes in the financial performance
and/or condition of our borrowers and the ability of our borrowers
to perform under the terms of their loans and other terms of credit
agreements; our ability to control expenses; and changes in
securities markets. In addition, we set forth certain risks in our
reports filed with the U.S. Securities and Exchange Commission,
including, Item 1A of our Annual Report on Form 10-K for the year
ended December 31, 2018, our Quarterly Reports on Form 10-Q, and
Current Reports on Form 8-K that we will file hereafter, which
could cause actual results to differ from those projected. We
undertake no obligation to update such forward-looking statements
except as required by law.
Investor Contacts:Romolo (Ron) SantarosaSenior
Executive Vice President & Chief Financial
Officer213-427-5636
Richard PimentelSenior Vice President & Corporate Finance
Officer213-427-3191
Lasse GlassenInvestor Relations / Addo Investor
Relations310-829-5400
Hanmi Financial Corporation and
SubsidiariesConsolidated Balance
Sheets (Unaudited)(In thousands)
|
March 31, |
|
December 31, |
|
Percentage |
|
March 31, |
|
Percentage |
|
2019 |
|
2018 |
|
Change |
|
2018 |
|
Change |
Assets |
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
$ |
169,830 |
|
|
$ |
155,376 |
|
|
9.3 |
% |
|
$ |
151,611 |
|
|
12.0 |
% |
Securities available for sale, at fair value |
|
621,470 |
|
|
|
574,908 |
|
|
8.1 |
% |
|
|
570,351 |
|
|
9.0 |
% |
Loans
held for sale, at the lower of cost or fair value |
|
7,140 |
|
|
|
9,390 |
|
|
-24.0 |
% |
|
|
6,008 |
|
|
18.8 |
% |
Loans and
leases receivable, net of allowance for loan and lease losses |
|
4,542,724 |
|
|
|
4,568,566 |
|
|
-0.6 |
% |
|
|
4,381,780 |
|
|
3.7 |
% |
Accrued
interest receivable |
|
13,397 |
|
|
|
13,331 |
|
|
0.5 |
% |
|
|
12,751 |
|
|
5.1 |
% |
Premises
and equipment, net |
|
28,426 |
|
|
|
27,752 |
|
|
2.4 |
% |
|
|
26,465 |
|
|
7.4 |
% |
Customers' liability on acceptances |
|
750 |
|
|
|
173 |
|
|
333.5 |
% |
|
|
870 |
|
|
-13.8 |
% |
Servicing
assets |
|
7,978 |
|
|
|
8,520 |
|
|
-6.4 |
% |
|
|
9,867 |
|
|
-19.1 |
% |
Goodwill
and other intangible assets, net |
|
12,105 |
|
|
|
12,182 |
|
|
-0.6 |
% |
|
|
12,454 |
|
|
-2.8 |
% |
Federal
Home Loan Bank ("FHLB") stock, at cost |
|
16,385 |
|
|
|
16,385 |
|
|
0.0 |
% |
|
|
16,385 |
|
|
0.0 |
% |
Bank-owned life insurance |
|
51,941 |
|
|
|
51,661 |
|
|
0.5 |
% |
|
|
50,831 |
|
|
2.2 |
% |
Prepaid
expenses and other assets |
|
98,922 |
|
|
|
63,975 |
|
|
54.6 |
% |
|
|
66,268 |
|
|
49.3 |
% |
Total assets |
$ |
5,571,068 |
|
|
$ |
5,502,219 |
|
|
1.3 |
% |
|
$ |
5,305,641 |
|
|
5.0 |
% |
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
1,316,114 |
|
|
$ |
1,284,530 |
|
|
2.5 |
% |
|
$ |
1,352,162 |
|
|
-2.7 |
% |
Interest-bearing |
|
3,504,061 |
|
|
|
3,462,705 |
|
|
1.2 |
% |
|
|
3,025,939 |
|
|
15.8 |
% |
Total
deposits |
|
4,820,175 |
|
|
|
4,747,235 |
|
|
1.5 |
% |
|
|
4,378,101 |
|
|
10.1 |
% |
Accrued
interest payable |
|
14,437 |
|
|
|
11,379 |
|
|
26.9 |
% |
|
|
5,931 |
|
|
143.4 |
% |
Bank's
liability on acceptances |
|
750 |
|
|
|
173 |
|
|
333.5 |
% |
|
|
870 |
|
|
-13.8 |
% |
Borrowings |
|
- |
|
|
|
55,000 |
|
|
-100.0 |
% |
|
|
220,000 |
|
|
-100.0 |
% |
Subordinated debentures |
|
117,947 |
|
|
|
117,808 |
|
|
0.1 |
% |
|
|
117,400 |
|
|
0.5 |
% |
Accrued
expenses and other liabilities |
|
53,467 |
|
|
|
18,056 |
|
|
196.1 |
% |
|
|
19,061 |
|
|
180.5 |
% |
Total liabilities |
|
5,006,776 |
|
|
|
4,949,651 |
|
|
1.2 |
% |
|
|
4,741,363 |
|
|
5.6 |
% |
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity: |
|
|
|
|
|
|
|
|
|
Common
stock |
|
33 |
|
|
|
33 |
|
|
0.0 |
% |
|
|
33 |
|
|
0.0 |
% |
Additional paid-in capital |
|
570,432 |
|
|
|
569,712 |
|
|
0.1 |
% |
|
|
567,081 |
|
|
0.6 |
% |
Accumulated other comprehensive (loss) income |
|
(1,882 |
) |
|
|
(6,079 |
) |
|
-69.0 |
% |
|
|
(8,207 |
) |
|
-77.1 |
% |
Retained
earnings |
|
104,771 |
|
|
|
97,539 |
|
|
7.4 |
% |
|
|
77,691 |
|
|
34.9 |
% |
Less
treasury stock |
|
(109,062 |
) |
|
|
(108,637 |
) |
|
0.4 |
% |
|
|
(72,320 |
) |
|
50.8 |
% |
Total stockholders' equity |
|
564,292 |
|
|
|
552,568 |
|
|
2.1 |
% |
|
|
564,278 |
|
|
0.0 |
% |
Total
liabilities and stockholders' equity |
$ |
5,571,068 |
|
|
$ |
5,502,219 |
|
|
1.3 |
% |
|
$ |
5,305,641 |
|
|
5.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial Corporation and
SubsidiariesConsolidated Statements of
Income (Unaudited)(In thousands, except share and
per share data)
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
Percentage |
|
March 31, |
|
Percentage |
|
2019 |
|
2018 |
|
Change |
|
2018 |
|
Change |
Interest and
dividend income: |
|
|
|
|
|
|
|
|
|
Interest and fees on
loans and leases |
$ |
58,334 |
|
$ |
57,947 |
|
|
0.7 |
% |
|
$ |
51,574 |
|
|
13.1 |
% |
Interest
on securities |
|
3,456 |
|
|
3,278 |
|
|
5.4 |
% |
|
|
3,105 |
|
|
11.3 |
% |
Dividends
on FHLB stock |
|
289 |
|
|
555 |
|
|
-47.9 |
% |
|
|
289 |
|
|
0.0 |
% |
Interest
on deposits in other banks |
|
335 |
|
|
179 |
|
|
87.2 |
% |
|
|
114 |
|
|
193.9 |
% |
Total
interest and dividend income |
|
62,414 |
|
|
61,959 |
|
|
0.7 |
% |
|
|
55,082 |
|
|
13.3 |
% |
Interest
expense: |
|
|
|
|
|
|
|
|
|
Interest
on deposits |
|
15,683 |
|
|
14,139 |
|
|
10.9 |
% |
|
|
7,785 |
|
|
101.5 |
% |
Interest
on borrowings |
|
71 |
|
|
420 |
|
|
-83.1 |
% |
|
|
679 |
|
|
-89.5 |
% |
Interest
on subordinated debentures |
|
1,772 |
|
|
1,754 |
|
|
1.0 |
% |
|
|
1,694 |
|
|
4.6 |
% |
Total
interest expense |
|
17,526 |
|
|
16,313 |
|
|
7.4 |
% |
|
|
10,158 |
|
|
72.5 |
% |
Net interest income
before provision for loan and lease losses |
|
44,888 |
|
|
45,646 |
|
|
-1.7 |
% |
|
|
44,924 |
|
|
-0.1 |
% |
Loan and
lease loss provision |
|
1,117 |
|
|
3,041 |
|
|
-63.3 |
% |
|
|
649 |
|
|
72.1 |
% |
Net interest income
after provision for loan and lease losses |
|
43,771 |
|
|
42,605 |
|
|
2.7 |
% |
|
|
44,275 |
|
|
-1.1 |
% |
Noninterest
income: |
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts |
|
2,358 |
|
|
2,648 |
|
|
-11.0 |
% |
|
|
2,511 |
|
|
-6.1 |
% |
Trade
finance and other service charges and fees |
|
1,124 |
|
|
1,167 |
|
|
-3.7 |
% |
|
|
1,173 |
|
|
-4.2 |
% |
Gain on
sale of Small Business Administration ("SBA") loans |
|
926 |
|
|
983 |
|
|
-5.8 |
% |
|
|
1,448 |
|
|
-36.0 |
% |
Servicing
income |
|
357 |
|
|
630 |
|
|
-43.3 |
% |
|
|
662 |
|
|
-46.1 |
% |
Bank-owned life insurance income |
|
280 |
|
|
288 |
|
|
-2.8 |
% |
|
|
277 |
|
|
1.1 |
% |
Net gain
(loss) on sales of securities |
|
725 |
|
|
- |
|
|
- |
|
|
|
(428 |
) |
|
-269.4 |
% |
Other
operating income |
|
484 |
|
|
584 |
|
|
-17.1 |
% |
|
|
418 |
|
|
15.8 |
% |
Total
noninterest income |
|
6,254 |
|
|
6,300 |
|
|
-0.7 |
% |
|
|
6,061 |
|
|
3.2 |
% |
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
15,738 |
|
|
15,845 |
|
|
-0.7 |
% |
|
|
18,702 |
|
|
-15.8 |
% |
Occupancy
and equipment |
|
4,521 |
|
|
4,105 |
|
|
10.1 |
% |
|
|
4,072 |
|
|
11.0 |
% |
Data
processing |
|
2,083 |
|
|
1,894 |
|
|
10.0 |
% |
|
|
1,678 |
|
|
24.1 |
% |
Professional fees |
|
1,649 |
|
|
1,969 |
|
|
-16.3 |
% |
|
|
1,369 |
|
|
20.5 |
% |
Supplies
and communications |
|
844 |
|
|
797 |
|
|
5.9 |
% |
|
|
708 |
|
|
19.2 |
% |
Advertising and promotion |
|
760 |
|
|
1,316 |
|
|
-42.2 |
% |
|
|
876 |
|
|
-13.2 |
% |
Other
real estate owned expense |
|
81 |
|
|
(378 |
) |
|
-121.4 |
% |
|
|
79 |
|
|
2.5 |
% |
Other
operating expenses |
|
3,389 |
|
|
3,751 |
|
|
-9.7 |
% |
|
|
2,273 |
|
|
49.1 |
% |
Total
noninterest expense |
|
29,065 |
|
|
29,299 |
|
|
-0.8 |
% |
|
|
29,757 |
|
|
-2.3 |
% |
Income before provision
for income taxes |
|
20,960 |
|
|
19,607 |
|
|
6.9 |
% |
|
|
20,579 |
|
|
1.9 |
% |
Provision
for income taxes |
|
6,288 |
|
|
8,222 |
|
|
-23.5 |
% |
|
|
5,724 |
|
|
9.9 |
% |
Net income |
$ |
14,672 |
|
$ |
11,385 |
|
|
28.9 |
% |
|
$ |
14,855 |
|
|
-1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share: |
$ |
0.48 |
|
$ |
0.37 |
|
|
|
|
$ |
0.46 |
|
|
|
Diluted earnings per
share: |
$ |
0.48 |
|
$ |
0.37 |
|
|
|
|
$ |
0.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
30,667,378 |
|
|
30,681,980 |
|
|
|
|
|
32,145,214 |
|
|
|
Diluted |
|
30,720,772 |
|
|
30,757,398 |
|
|
|
|
|
32,301,095 |
|
|
|
Common shares
outstanding |
|
30,860,533 |
|
|
30,928,437 |
|
|
|
|
|
32,502,658 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial Corporation and
SubsidiariesAverage Balance, Average Yield
Earned, and Average Rate Paid (Unaudited)(In
thousands, except ratios)
|
Three Months Ended |
|
March 31, 2019 |
|
December 31, 2018 |
|
March 31, 2018 |
|
|
Interest |
Average |
|
|
Interest |
Average |
|
|
Interest |
Average |
|
Average |
Income / |
Yield / |
|
Average |
Income / |
Yield / |
|
Average |
Income / |
Yield / |
|
Balance |
Expense |
Rate |
|
Balance |
Expense |
Rate |
|
Balance |
Expense |
Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Loans and leases
receivable (1) |
$ |
4,533,120 |
|
$ |
58,334 |
5.22 |
% |
|
$ |
4,544,722 |
|
$ |
57,946 |
5.06 |
% |
|
$ |
4,310,964 |
|
$ |
51,574 |
4.85 |
% |
Securities (2) |
|
589,547 |
|
|
3,597 |
2.44 |
% |
|
|
581,550 |
|
|
3,442 |
2.37 |
% |
|
|
588,738 |
|
|
3,296 |
2.24 |
% |
FHLB
stock |
|
16,385 |
|
|
289 |
7.15 |
% |
|
|
16,385 |
|
|
555 |
13.44 |
% |
|
|
16,385 |
|
|
289 |
7.15 |
% |
Interest-bearing deposits in other banks |
|
53,022 |
|
|
335 |
2.56 |
% |
|
|
34,301 |
|
|
179 |
2.07 |
% |
|
|
32,401 |
|
|
114 |
1.43 |
% |
Total
interest-earning assets |
|
5,192,074 |
|
|
62,555 |
4.89 |
% |
|
|
5,176,958 |
|
|
62,122 |
4.76 |
% |
|
|
4,948,488 |
|
|
55,273 |
4.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks |
|
108,992 |
|
|
|
|
|
120,684 |
|
|
|
|
|
122,580 |
|
|
|
Allowance
for loan and lease losses |
|
(31,982 |
) |
|
|
|
|
(31,005 |
) |
|
|
|
|
(32,487 |
) |
|
|
Other
assets |
|
171,867 |
|
|
|
|
|
173,896 |
|
|
|
|
|
175,209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
5,440,951 |
|
|
|
|
$ |
5,440,533 |
|
|
|
|
$ |
5,213,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
Demand:
interest-bearing |
$ |
85,291 |
|
$ |
29 |
0.14 |
% |
|
$ |
89,971 |
|
$ |
34 |
0.15 |
% |
|
$ |
91,378 |
|
$ |
18 |
0.08 |
% |
Money
market and savings |
|
1,526,710 |
|
|
5,677 |
1.51 |
% |
|
|
1,510,428 |
|
|
5,300 |
1.39 |
% |
|
|
1,478,795 |
|
|
3,326 |
0.91 |
% |
Time
deposits |
|
1,852,562 |
|
|
9,977 |
2.18 |
% |
|
|
1,751,429 |
|
|
8,805 |
1.99 |
% |
|
|
1,440,382 |
|
|
4,441 |
1.25 |
% |
Total
interest-bearing deposits |
|
3,464,563 |
|
|
15,683 |
1.84 |
% |
|
|
3,351,828 |
|
|
14,139 |
1.67 |
% |
|
|
3,010,555 |
|
|
7,785 |
1.05 |
% |
Borrowings |
|
10,611 |
|
|
71 |
2.71 |
% |
|
|
65,217 |
|
|
420 |
2.56 |
% |
|
|
179,000 |
|
|
679 |
1.54 |
% |
Subordinated debentures |
|
117,863 |
|
|
1,772 |
6.01 |
% |
|
|
117,728 |
|
|
1,754 |
5.94 |
% |
|
|
117,323 |
|
|
1,694 |
5.77 |
% |
Total
interest-bearing liabilities |
|
3,593,037 |
|
|
17,526 |
1.98 |
% |
|
|
3,534,773 |
|
|
16,313 |
1.83 |
% |
|
|
3,306,878 |
|
|
10,158 |
1.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities and equity: |
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits: noninterest-bearing |
|
1,251,659 |
|
|
|
|
|
1,305,860 |
|
|
|
|
|
1,307,072 |
|
|
|
Other
liabilities |
|
36,218 |
|
|
|
|
|
29,462 |
|
|
|
|
|
33,973 |
|
|
|
Stockholders' equity |
|
560,037 |
|
|
|
|
|
570,438 |
|
|
|
|
|
565,867 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
$ |
5,440,951 |
|
|
|
|
$ |
5,440,533 |
|
|
|
|
$ |
5,213,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (tax equivalent basis) |
|
$ |
45,029 |
|
|
|
$ |
45,809 |
|
|
|
$ |
45,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
deposits |
|
|
1.35 |
% |
|
|
|
1.20 |
% |
|
|
|
0.73 |
% |
Net
interest spread (taxable equivalent basis) |
|
2.91 |
% |
|
|
|
2.93 |
% |
|
|
|
3.28 |
% |
Net
interest margin (taxable equivalent basis) |
|
3.52 |
% |
|
|
|
3.51 |
% |
|
|
|
3.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes loans held for
sale(2) Amounts calculated on a
fully taxable equivalent basis using the federal tax rate in effect
for the periods presented.
Non-GAAP Financial Measures
Tangible Common Equity to Tangible Assets
Ratio
Tangible common equity to tangible assets ratio is supplemental
financial information determined by a method other than in
accordance with U.S. generally accepted accounting principles
(“GAAP”). This non-GAAP measure is used by management in the
analysis of Hanmi’s capital strength. Tangible equity is calculated
by subtracting goodwill and other intangible assets from
stockholders’ equity. Banking and financial institution regulators
also exclude goodwill and other intangible assets from
stockholders’ equity when assessing the capital adequacy of a
financial institution. Management believes the presentation of this
financial measure excluding the impact of these items provides
useful supplemental information that is essential to a proper
understanding of the capital strength of Hanmi. This disclosure
should not be viewed as a substitution for results determined in
accordance with GAAP, nor is it necessarily comparable to non-GAAP
performance measures that may be presented by other companies.
The following table reconciles this non-GAAP performance measure
to the GAAP performance measure for the periods indicated:
Tangible Common Equity to Tangible Assets Ratio
(Unaudited)(In thousands, except share, per share data and
ratios)
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
Hanmi Financial
Corporation |
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
Assets |
$ |
5,571,068 |
|
|
$ |
5,502,219 |
|
|
$ |
5,487,042 |
|
|
$ |
5,415,202 |
|
|
$ |
5,305,641 |
|
Less
goodwill and other intangible assets |
|
(12,105 |
) |
|
|
(12,182 |
) |
|
|
(12,273 |
) |
|
|
(12,363 |
) |
|
|
(12,454 |
) |
Tangible assets |
$ |
5,558,963 |
|
|
$ |
5,490,037 |
|
|
$ |
5,474,769 |
|
|
$ |
5,402,839 |
|
|
$ |
5,293,187 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity |
$ |
564,292 |
|
|
$ |
552,568 |
|
|
$ |
567,748 |
|
|
$ |
571,707 |
|
|
$ |
564,278 |
|
Less
goodwill and other intangible assets |
|
(12,105 |
) |
|
|
(12,182 |
) |
|
|
(12,273 |
) |
|
|
(12,363 |
) |
|
|
(12,454 |
) |
Tangible stockholders'
equity |
$ |
552,187 |
|
|
$ |
540,386 |
|
|
$ |
555,475 |
|
|
$ |
559,344 |
|
|
$ |
551,824 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity to
assets |
|
10.13 |
% |
|
|
10.04 |
% |
|
|
10.35 |
% |
|
|
10.56 |
% |
|
|
10.64 |
% |
Tangible common equity
to tangible assets |
|
9.93 |
% |
|
|
9.84 |
% |
|
|
10.15 |
% |
|
|
10.35 |
% |
|
|
10.43 |
% |
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding |
|
30,860,533 |
|
|
|
30,928,437 |
|
|
|
32,087,236 |
|
|
|
32,513,518 |
|
|
|
32,502,658 |
|
Tangible common equity
per common share |
$ |
17.89 |
|
|
$ |
17.47 |
|
|
$ |
17.31 |
|
|
$ |
17.20 |
|
|
$ |
16.98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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