Hanmi Financial Corporation (NASDAQ: HAFC, or
“Hanmi”), the parent company of Hanmi Bank (the “Bank”),
today reported net income for the 2020 first quarter of $2.4
million, or $0.08 per diluted share, compared with $3.1 million, or
$0.10 per diluted share for the 2019 fourth quarter and $14.7
million, or $0.48 per diluted share for the 2019 first quarter.
On January 1, 2020, Hanmi adopted Accounting
Standards Update (“ASU”) 2016-13, Financial Instruments – Credit
Losses, which replaced the incurred loss methodology for estimating
credit losses with a forward-looking current expected credit losses
(“CECL”) methodology. The adoption resulted in a $17.4 million
increase to the beginning balance of the allowance for credit
losses, a $0.3 million decrease to the beginning balance of the
allowance for off-balance sheet items and an after-tax charge of
$12.2 million to the beginning balance of retained earnings.
Bonnie Lee, President and Chief Executive
Officer, said, “As the COVID-19 crisis continues, we are focused on
ensuring the health and safety of our employees, customers,
partners, and communities we have served for nearly four decades.
As an essential business under various state and federal
guidelines, nearly all of Hanmi’s branches remain open with some
modifications to business hours. In addition to complying with all
social distancing guidelines, we have sourced and distributed
personal protective equipment and other supplies to all branches
and installed protective barriers for teller lines for the benefit
of our frontline associates. Notwithstanding the sudden impact this
had on our business activities, Hanmi continued to deliver
throughout the first quarter.”
“With respect to our customers, we continue to
look for ways to provide support in this time of need. Where
appropriate, we are working with borrowers through modifications,
deferrals and other services to help them weather the crisis.
Currently, we have received more than 3,000 inquiries and disbursed
approximately $156.8 million for the SBA’s Paycheck Protection
Program and we are working tirelessly to process these loans as
quickly as possible. Hanmi is reviewing other government funded
relief programs and intends to stand by its customers.
Ms. Lee concluded, “Our results in the first
quarter reflect the significant challenges imposed by this crisis.
While these are difficult times, Hanmi is no stranger to
successfully operating in a challenging environment, and I am proud
of the Bank’s track-record of persevering through periods of
adversity. From the LA Riots in 1992 to the Financial Crisis of
2008, we have demonstrated the ability to unite in support of our
customers and local communities. As Hanmi has done many times
before, I am confident that we will come through this crisis
stronger than ever.”
Quarterly Highlights (Dollars
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, |
|
Q1-20 |
|
Q1-20 |
|
|
2020 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
vs. Q4-19 |
|
vs. Q1-19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
2,350 |
|
|
$ |
3,084 |
|
|
$ |
12,376 |
|
|
$ |
2,656 |
|
|
$ |
14,672 |
|
|
$ |
(734 |
) |
|
$ |
(12,322 |
) |
Net income
per diluted common share |
$ |
0.08 |
|
|
$ |
0.10 |
|
|
$ |
0.40 |
|
|
$ |
0.09 |
|
|
$ |
0.48 |
|
|
$ |
(0.02 |
) |
|
$ |
(0.40 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
5,617,690 |
|
|
$ |
5,538,184 |
|
|
$ |
5,527,982 |
|
|
$ |
5,511,752 |
|
|
$ |
5,571,068 |
|
|
$ |
79,506 |
|
|
$ |
46,622 |
|
Loans
receivable |
$ |
4,543,636 |
|
|
$ |
4,610,148 |
|
|
$ |
4,569,837 |
|
|
$ |
4,555,802 |
|
|
$ |
4,575,620 |
|
|
$ |
(66,512 |
) |
|
$ |
(31,984 |
) |
Deposits |
$ |
4,582,068 |
|
|
$ |
4,698,962 |
|
|
$ |
4,690,141 |
|
|
$ |
4,762,068 |
|
|
$ |
4,820,175 |
|
|
$ |
(116,894 |
) |
|
|
$ |
(238,107 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets |
|
0.17 |
% |
|
|
0.22 |
% |
|
|
0.90 |
% |
|
|
0.19 |
% |
|
|
1.09 |
% |
|
|
-0.05 |
|
|
|
-0.92 |
|
Return on
average stockholders' equity |
|
1.69 |
% |
|
|
2.15 |
% |
|
|
8.67 |
% |
|
|
1.87 |
% |
|
|
10.62 |
% |
|
|
-0.46 |
|
|
|
-8.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (1) |
|
3.36 |
% |
|
|
3.32 |
% |
|
|
3.36 |
% |
|
|
3.30 |
% |
|
|
3.52 |
% |
|
|
0.04 |
|
|
|
-0.16 |
|
Efficiency
ratio (2) |
|
61.89 |
% |
|
|
67.31 |
% |
|
|
64.04 |
% |
|
|
59.43 |
% |
|
|
56.83 |
% |
|
|
-5.42 |
|
|
|
5.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
common equity to tangible assets (3) |
|
9.65 |
% |
|
|
9.98 |
% |
|
|
10.20 |
% |
|
|
10.04 |
% |
|
|
9.93 |
% |
|
|
-0.33 |
|
|
|
-0.28 |
|
Tangible
common equity per common share (3) |
$ |
17.67 |
|
|
$ |
17.90 |
|
|
$ |
18.05 |
|
|
$ |
17.83 |
|
|
$ |
17.89 |
|
|
$ |
(0.23 |
) |
|
$ |
(0.22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Net
interest income was $44.0 million for the first quarter of 2020
compared with $43.9 million for the fourth quarter of 2019. First
quarter interest and fees on loans receivable decreased 2.9%, or
$1.6 million, from the preceding quarter primarily due to an 11
basis point reduction in average yields, which declined in part
from the 150 basis point decline in the federal funds rate late in
the first quarter. This was offset by a decrease in total interest
expense of 10.8%, or $1.8 million, from the preceding quarter due
primarily to lower rates paid on interest-bearing deposits. First
quarter loan prepayment penalties were $0.5 million compared with
$0.7 million for the fourth quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or For the Three Months Ended (in
thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-20 |
|
Q1-20 |
Net
Interest Income |
|
2020 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
vs. Q4-19 |
|
vs. Q1-19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and
fees on loans receivable(1) |
$ |
54,648 |
|
|
$ |
56,267 |
|
|
$ |
57,929 |
|
|
$ |
56,872 |
|
|
$ |
58,334 |
|
|
|
-2.9 |
% |
|
|
-6.3 |
% |
Interest on
securities |
|
3,655 |
|
|
|
3,665 |
|
|
|
3,769 |
|
|
|
3,770 |
|
|
|
3,456 |
|
|
|
-0.3 |
% |
|
|
5.8 |
% |
Dividends on
FHLB stock |
|
289 |
|
|
|
289 |
|
|
|
286 |
|
|
|
283 |
|
|
|
289 |
|
|
|
0.0 |
% |
|
|
0.0 |
% |
Interest on
deposits in other banks |
|
333 |
|
|
|
478 |
|
|
|
193 |
|
|
|
557 |
|
|
|
335 |
|
|
|
-30.3 |
% |
|
|
-0.6 |
% |
Total interest and dividend income |
$ |
58,925 |
|
|
$ |
60,699 |
|
|
$ |
62,177 |
|
|
$ |
61,482 |
|
|
$ |
62,414 |
|
|
|
-2.9 |
% |
|
|
-5.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits |
|
12,742 |
|
|
|
14,699 |
|
|
|
15,995 |
|
|
|
16,728 |
|
|
|
15,683 |
|
|
|
-13.3 |
% |
|
|
-18.8 |
% |
Interest on
borrowings |
|
496 |
|
|
|
325 |
|
|
|
367 |
|
|
|
- |
|
|
|
71 |
|
|
|
52.6 |
% |
|
|
598.6 |
% |
Interest on
subordinated debentures |
|
1,712 |
|
|
|
1,739 |
|
|
|
1,757 |
|
|
|
1,764 |
|
|
|
1,772 |
|
|
|
-1.6 |
% |
|
|
-3.4 |
% |
Total interest expense |
|
14,950 |
|
|
|
16,763 |
|
|
|
18,119 |
|
|
|
18,492 |
|
|
|
17,526 |
|
|
|
-10.8 |
% |
|
|
-14.7 |
% |
Net interest
income |
$ |
43,975 |
|
|
$ |
43,936 |
|
|
$ |
44,058 |
|
|
$ |
42,990 |
|
|
$ |
44,888 |
|
|
|
0.1 |
% |
|
|
-2.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes loans held for sale. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin was 3.36% for the first
quarter of 2020 compared with 3.32% for the fourth quarter of 2019,
principally reflecting a 19 basis point decline in the cost of
interest-bearing deposits offset by a 9 basis point decline in the
yield on earning assets. The average earning asset yield was 4.50%
for the first quarter of 2020 compared with 4.59% for the fourth
quarter of 2019. The 9 basis point decline reflects in part the 150
basis point decline in the federal funds rate. The cost of
interest-bearing liabilities was 1.70% for the first quarter of
2020 compared with 1.89% for the fourth quarter of 2019. The lower
cost of interest-bearing liabilities was driven by a reduction in
the general level of interest rates.
|
For the Three Months Ended (in
thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-20 |
|
Q1-20 |
Average Earning Assets and Interest-bearing
Liabilities |
|
2020 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
vs. Q4-19 |
|
vs. Q1-19 |
Loans
receivable (1) |
$ |
4,518,395 |
|
|
$ |
4,487,998 |
|
|
$ |
4,519,770 |
|
|
$ |
4,491,377 |
|
|
$ |
4,533,120 |
|
|
|
0.7 |
% |
|
|
-0.3 |
% |
Securities |
|
623,711 |
|
|
|
624,861 |
|
|
|
630,450 |
|
|
|
629,062 |
|
|
|
589,547 |
|
|
|
-0.2 |
% |
|
|
5.8 |
% |
FHLB
stock |
|
16,385 |
|
|
|
16,385 |
|
|
|
16,385 |
|
|
|
16,385 |
|
|
|
16,385 |
|
|
|
0.0 |
% |
|
|
0.0 |
% |
Interest-bearing deposits in other banks |
|
104,513 |
|
|
|
114,462 |
|
|
|
35,140 |
|
|
|
92,753 |
|
|
|
53,022 |
|
|
|
-8.7 |
% |
|
|
97.1 |
% |
Average interest-earning assets |
$ |
5,263,004 |
|
|
$ |
5,243,706 |
|
|
$ |
5,201,745 |
|
|
$ |
5,229,577 |
|
|
$ |
5,192,074 |
|
|
|
0.4 |
% |
|
|
1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand:
interest-bearing |
$ |
82,934 |
|
|
$ |
82,604 |
|
|
$ |
82,665 |
|
|
$ |
83,932 |
|
|
$ |
85,291 |
|
|
|
0.4 |
% |
|
|
-2.8 |
% |
Money market
and savings |
|
1,687,013 |
|
|
|
1,640,162 |
|
|
|
1,555,639 |
|
|
|
1,541,976 |
|
|
|
1,526,710 |
|
|
|
2.9 |
% |
|
|
10.5 |
% |
Time
deposits |
|
1,522,745 |
|
|
|
1,605,276 |
|
|
|
1,692,419 |
|
|
|
1,863,685 |
|
|
|
1,852,562 |
|
|
|
-5.1 |
% |
|
|
-17.8 |
% |
Average interest-bearing deposits |
|
3,292,692 |
|
|
|
3,328,042 |
|
|
|
3,330,723 |
|
|
|
3,489,593 |
|
|
|
3,464,563 |
|
|
|
-1.1 |
% |
|
|
-5.0 |
% |
Borrowings |
|
130,659 |
|
|
|
75,500 |
|
|
|
74,239 |
|
|
|
59 |
|
|
|
10,611 |
|
|
|
73.1 |
% |
|
|
1131.4 |
% |
Subordinated
debentures |
|
118,444 |
|
|
|
118,297 |
|
|
|
118,145 |
|
|
|
118,007 |
|
|
|
117,863 |
|
|
|
0.1 |
% |
|
|
0.5 |
% |
Average interest-bearing liabilities |
$ |
3,541,795 |
|
|
$ |
3,521,839 |
|
|
$ |
3,523,107 |
|
|
$ |
3,607,659 |
|
|
$ |
3,593,037 |
|
|
|
0.6 |
% |
|
|
-1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes loans held for sale. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
Amount Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-20 |
|
Q1-20 |
Average Yields and Rates |
|
2020 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
vs. Q4-19 |
|
vs. Q1-19 |
Loans
receivable(1) |
|
4.86 |
% |
|
|
4.97 |
% |
|
|
5.08 |
% |
|
|
5.08 |
% |
|
|
5.22 |
% |
|
|
-0.11 |
|
|
|
-0.36 |
|
Securities
(2) |
|
2.34 |
% |
|
|
2.35 |
% |
|
|
2.39 |
% |
|
|
2.40 |
% |
|
|
2.44 |
% |
|
|
-0.01 |
|
|
|
-0.10 |
|
FHLB
stock |
|
7.10 |
% |
|
|
7.00 |
% |
|
|
6.93 |
% |
|
|
6.93 |
% |
|
|
7.15 |
% |
|
|
0.10 |
|
|
|
-0.05 |
|
Interest-bearing deposits in other banks |
|
1.28 |
% |
|
|
1.66 |
% |
|
|
2.18 |
% |
|
|
2.41 |
% |
|
|
2.56 |
% |
|
|
-0.38 |
|
|
|
-1.28 |
|
Interest-earning assets |
|
4.50 |
% |
|
|
4.59 |
% |
|
|
4.74 |
% |
|
|
4.72 |
% |
|
|
4.89 |
% |
|
|
-0.09 |
|
|
|
-0.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
1.56 |
% |
|
|
1.75 |
% |
|
|
1.91 |
% |
|
|
1.92 |
% |
|
|
1.84 |
% |
|
|
-0.19 |
|
|
|
-0.28 |
|
Borrowings |
|
1.53 |
% |
|
|
1.71 |
% |
|
|
1.96 |
% |
|
|
0.00 |
% |
|
|
2.71 |
% |
|
|
-0.18 |
|
|
|
-1.18 |
|
Subordinated
debentures |
|
5.78 |
% |
|
|
5.88 |
% |
|
|
5.92 |
% |
|
|
5.96 |
% |
|
|
6.01 |
% |
|
|
-0.10 |
|
|
|
-0.23 |
|
Interest-bearing liabilities |
|
1.70 |
% |
|
|
1.89 |
% |
|
|
2.04 |
% |
|
|
2.06 |
% |
|
|
1.98 |
% |
|
|
-0.19 |
|
|
|
-0.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (taxable equivalent basis) |
|
3.36 |
% |
|
|
3.32 |
% |
|
|
3.36 |
% |
|
|
3.30 |
% |
|
|
3.52 |
% |
|
|
0.04 |
|
|
|
-0.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
deposits |
|
1.11 |
% |
|
|
1.25 |
% |
|
|
1.37 |
% |
|
|
1.41 |
% |
|
|
1.35 |
% |
|
|
-0.14 |
|
|
|
-0.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 2020, credit loss
expense was $15.7 million, comprised of a $14.9 million provision
for loan losses and a $0.8 million provision for off-balance sheet
items. The provision for loan losses for the fourth quarter of 2019
was $10.8 million and was $1.1 million for the first quarter of
2019. The provision for off-balance sheet items was an expense of
$0.9 million and income of $0.3 million for the fourth quarter and
first quarter of 2019, respectively. The 2020 first quarter expense
included a $7.4 million specific qualitative provision for the
COVID-19 crisis, a $4.9 million provision primarily for changes in
other qualitative factors, and a $2.6 million specific provision
for the previously identified troubled loan relationship. The 2019
fourth quarter included a $6.9 million specific provision for the
previously identified troubled loan relationship.
First quarter noninterest income decreased 7.2%
to $6.2 million from $6.7 million for the fourth quarter, primarily
due to a $0.3 million decrease in gain on sale of SBA loans. Gains
on sales of SBA loans were $1.2 million for the first quarter 2020,
down from $1.5 million for the preceding quarter reflecting lower
trade volumes notwithstanding higher trade premiums. SBA trade
premiums increased to 8.35% for the first quarter compared with
7.60% for the prior quarter and the volume of SBA loans sold for
the 2020 first quarter and 2019 fourth quarter were $18.2 million
and $25.0 million, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended (in
thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-20 |
|
Q1-20 |
Noninterest Income |
|
2020 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
vs. Q4-19 |
|
vs. Q1-19 |
Service
charges on deposit accounts |
$ |
2,400 |
|
|
$ |
2,589 |
|
|
$ |
2,518 |
|
|
$ |
2,486 |
|
|
$ |
2,358 |
|
|
|
-7.3 |
% |
|
|
1.8 |
% |
Trade
finance and other service charges and fees |
|
986 |
|
|
|
1,267 |
|
|
|
1,191 |
|
|
|
1,204 |
|
|
|
1,124 |
|
|
|
-22.2 |
% |
|
|
-12.3 |
% |
Servicing
income |
|
561 |
|
|
|
227 |
|
|
|
614 |
|
|
|
600 |
|
|
|
357 |
|
|
|
147.1 |
% |
|
|
57.1 |
% |
Bank-owned
life insurance income |
|
277 |
|
|
|
281 |
|
|
|
279 |
|
|
|
281 |
|
|
|
280 |
|
|
|
-1.5 |
% |
|
|
-1.1 |
% |
All other
operating income |
|
846 |
|
|
|
846 |
|
|
|
491 |
|
|
|
293 |
|
|
|
484 |
|
|
|
0.0 |
% |
|
|
74.8 |
% |
Service charges, fees & other |
|
5,070 |
|
|
|
5,210 |
|
|
|
5,093 |
|
|
|
4,864 |
|
|
|
4,603 |
|
|
|
-2.7 |
% |
|
|
10.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale
of SBA loans |
|
1,154 |
|
|
|
1,499 |
|
|
|
1,767 |
|
|
|
1,060 |
|
|
|
926 |
|
|
|
-23.0 |
% |
|
|
24.6 |
% |
Net gain on
sales of securities |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
570 |
|
|
|
725 |
|
|
|
0.0 |
% |
|
|
-100.0 |
% |
Gain on sale
of bank premises |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,235 |
|
|
|
- |
|
|
|
0.0 |
% |
|
|
0.0 |
% |
Total noninterest income |
$ |
6,224 |
|
|
$ |
6,709 |
|
|
$ |
6,860 |
|
|
$ |
7,729 |
|
|
$ |
6,254 |
|
|
|
-7.2 |
% |
|
|
-0.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the first quarter of 2020, noninterest expense decreased
8.9% to $31.1 million from $34.1 million in the fourth quarter due
to a $1.7 million impairment loss on former bank premises to be
sold and a $0.9 million provision for off-balance sheet items
recorded in the fourth quarter, as well as a $0.7 million decrease
in professional fees for the first quarter. Primarily as a result
of lower noninterest expense, the efficiency ratio improved to
61.9% in the first quarter from 67.3% in the prior quarter.
|
For the Three Months Ended (in
thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-20 |
|
Q1-20 |
|
|
2020 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
vs. Q4-19 |
|
vs. Q1-19 |
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits |
$ |
17,749 |
|
|
$ |
17,752 |
|
|
$ |
17,530 |
|
|
$ |
16,881 |
|
|
$ |
15,738 |
|
|
|
-0.0 |
% |
|
|
12.8 |
% |
Occupancy
and equipment |
|
4,475 |
|
|
|
4,547 |
|
|
|
4,528 |
|
|
|
3,468 |
|
|
|
4,521 |
|
|
|
-1.6 |
% |
|
|
-1.0 |
% |
Data
processing |
|
2,669 |
|
|
|
2,122 |
|
|
|
2,410 |
|
|
|
2,140 |
|
|
|
2,083 |
|
|
|
25.8 |
% |
|
|
28.1 |
% |
Professional
fees |
|
1,915 |
|
|
|
2,601 |
|
|
|
2,826 |
|
|
|
1,983 |
|
|
|
1,649 |
|
|
|
-26.4 |
% |
|
|
16.2 |
% |
Supplies and
communication |
|
781 |
|
|
|
717 |
|
|
|
726 |
|
|
|
649 |
|
|
|
844 |
|
|
|
8.9 |
% |
|
|
-7.5 |
% |
Advertising
and promotion |
|
734 |
|
|
|
1,165 |
|
|
|
927 |
|
|
|
945 |
|
|
|
760 |
|
|
|
-37.0 |
% |
|
|
-3.5 |
% |
All other
operating expenses |
|
2,743 |
|
|
|
3,411 |
|
|
|
3,500 |
|
|
|
3,920 |
|
|
|
3,389 |
|
|
|
-19.6 |
% |
|
|
-19.1 |
% |
subtotal |
|
31,066 |
|
|
|
32,315 |
|
|
|
32,447 |
|
|
|
29,986 |
|
|
|
28,984 |
|
|
|
-3.9 |
% |
|
|
7.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real
estate owned expense |
|
2 |
|
|
|
40 |
|
|
|
160 |
|
|
|
158 |
|
|
|
81 |
|
|
|
-95.0 |
% |
|
|
-97.5 |
% |
Impairment
loss on bank premises |
|
- |
|
|
|
1,734 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
-100.0 |
% |
|
|
0.0 |
% |
Total noninterest expense |
$ |
31,068 |
|
|
$ |
34,089 |
|
|
$ |
32,607 |
|
|
$ |
30,144 |
|
|
$ |
29,065 |
|
|
|
-8.9 |
% |
|
|
6.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi recorded a provision for income taxes of
$1.0 million for the first quarter of 2020, representing an
effective tax rate of 30.7% compared with $2.7 million,
representing an effective tax rate of 46.9% for the fourth quarter
of 2019. The full year 2019 effective tax rate was 30.8%.
Financial PositionTotal assets
were $5.62 billion at March 31, 2020, a 1.4% increase from $5.54
billion at December 31, 2019.
Loans receivable, before the allowance for
credit losses, were $4.54 billion at March 31, 2020, down 1.4% from
$4.61 billion at December 31, 2019. Loans held for sale,
representing the guaranteed portion of SBA loans were $6.0 million
at the end of the fourth quarter; there were no loans held for sale
at the end of the first quarter. Hanmi does not expect, at this
time, that it will sell SBA 7(a) loans during the second quarter
because of the disruptions in the secondary market resulting from
the COVID-19 crisis.
|
As of (in thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-20 |
|
Q1-20 |
|
|
2020 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
vs. Q4-19 |
|
vs. Q1-19 |
Loan
Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate loans |
$ |
3,187,189 |
|
|
$ |
3,226,478 |
|
|
$ |
3,209,752 |
|
|
$ |
3,213,135 |
|
|
$ |
3,230,526 |
|
|
|
-1.2 |
% |
|
|
-1.3 |
% |
Residential
real estate loans |
|
379,116 |
|
|
|
402,028 |
|
|
|
436,576 |
|
|
|
458,327 |
|
|
|
483,830 |
|
|
|
-5.7 |
% |
|
|
-21.6 |
% |
Commercial
and industrial loans |
|
472,715 |
|
|
|
484,093 |
|
|
|
441,209 |
|
|
|
409,502 |
|
|
|
422,502 |
|
|
|
-2.4 |
% |
|
|
11.9 |
% |
Leases |
|
492,527 |
|
|
|
483,879 |
|
|
|
467,777 |
|
|
|
460,519 |
|
|
|
425,530 |
|
|
|
1.8 |
% |
|
|
15.7 |
% |
Consumer
loans |
|
12,089 |
|
|
|
13,670 |
|
|
|
14,523 |
|
|
|
14,319 |
|
|
|
13,232 |
|
|
|
-11.6 |
% |
|
|
-8.6 |
% |
Loans receivable |
|
4,543,636 |
|
|
|
4,610,148 |
|
|
|
4,569,837 |
|
|
|
4,555,802 |
|
|
|
4,575,620 |
|
|
|
-1.4 |
% |
|
|
-0.7 |
% |
Loans held
for sale |
|
- |
|
|
|
6,020 |
|
|
|
6,598 |
|
|
|
6,029 |
|
|
|
7,140 |
|
|
|
-100.0 |
% |
|
|
-100.0 |
% |
Total |
$ |
4,543,636 |
|
|
$ |
4,616,168 |
|
|
$ |
4,576,435 |
|
|
$ |
4,561,831 |
|
|
$ |
4,582,760 |
|
|
|
-1.6 |
% |
|
|
-0.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the first quarter of 2020, commercial real
estate loans as a percentage of loans receivable decreased to 70.1%
compared with 70.6% for the same period last year. Commercial and
industrial loans, and leases each reached 10.4% and 10.8% of the
portfolio; a year ago, they were 9.2% and 9.3%, respectively.
New loan production for the 2020 first quarter
was $208.7 million at an average rate of 4.88%, while the average
rate of loans paid off during the same period was 4.70%. Although
Hanmi generated strong loan production volume through much of the
first quarter, approximately $100 million of loans, inclusive of
$13 million of SBA 7(a) loans, that were in late stages of approval
were withdrawn or delayed by borrowers in the final weeks of the
quarter due to economic uncertainty surrounding the COVID-19
crisis.
|
For the Three Months Ended (in thousands) |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
New
Loan Production |
|
|
|
|
|
|
|
|
|
Commercial
real estate loans |
$ |
109,433 |
|
|
$ |
185,070 |
|
|
$ |
78,039 |
|
|
$ |
105,527 |
|
|
$ |
46,531 |
|
Commercial
and industrial loans |
|
18,237 |
|
|
|
95,349 |
|
|
|
51,093 |
|
|
|
48,451 |
|
|
|
33,643 |
|
SBA
loans |
|
23,422 |
|
|
|
33,649 |
|
|
|
34,114 |
|
|
|
19,970 |
|
|
|
29,976 |
|
Leases
receivable |
|
56,849 |
|
|
|
65,525 |
|
|
|
52,333 |
|
|
|
77,983 |
|
|
|
69,577 |
|
Consumer
loans |
|
715 |
|
|
|
1,768 |
|
|
|
1,882 |
|
|
|
450 |
|
|
|
122 |
|
subtotal |
|
208,655 |
|
|
|
381,361 |
|
|
|
217,461 |
|
|
|
252,381 |
|
|
|
179,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payoffs |
|
(122,686 |
) |
|
|
(205,012 |
) |
|
|
(103,638 |
) |
|
|
(124,200 |
) |
|
|
(133,246 |
) |
Amortization |
|
(95,414 |
) |
|
|
(77,580 |
) |
|
|
(70,407 |
) |
|
|
(77,417 |
) |
|
|
(74,538 |
) |
Loan
sales |
|
(18,352 |
) |
|
|
(26,087 |
) |
|
|
(24,286 |
) |
|
|
(16,650 |
) |
|
|
(15,459 |
) |
Net line
utilization |
|
(11,242 |
) |
|
|
(31,333 |
) |
|
|
(4,012 |
) |
|
|
(52,404 |
) |
|
|
19,581 |
|
Charge-offs
& OREO |
|
(27,473 |
) |
|
|
(1,038 |
) |
|
|
(1,084 |
) |
|
|
(1,527 |
) |
|
|
(1,107 |
) |
|
|
|
|
|
|
|
|
|
|
Loans
receivable-beginning balance |
|
4,610,148 |
|
|
|
4,569,837 |
|
|
|
4,555,803 |
|
|
|
4,575,620 |
|
|
|
4,600,540 |
|
Loans
receivable-ending balance |
$ |
4,543,636 |
|
|
$ |
4,610,148 |
|
|
$ |
4,569,837 |
|
|
$ |
4,555,803 |
|
|
$ |
4,575,620 |
|
|
|
|
|
|
|
|
|
|
|
Deposits totaled $4.58 billion at the end of the
first quarter, compared with $4.70 billion at the end of the
preceding quarter and $4.82 billion at the end of the first quarter
last year. The average loan-to-deposit ratio for the first quarter
was 97.7% compared with 96.1% for both the prior quarter and first
quarter 2019.
|
As of (in thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-20 |
|
Q1-20 |
|
|
2020 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
vs. Q4-19 |
|
vs. Q1-19 |
Deposit Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand:
noninterest-bearing |
$ |
1,366,270 |
|
|
$ |
1,391,624 |
|
|
$ |
1,388,121 |
|
|
$ |
1,312,577 |
|
|
$ |
1,316,114 |
|
|
|
-1.8 |
% |
|
|
3.8 |
% |
Demand:
interest-bearing |
|
87,313 |
|
|
|
84,323 |
|
|
|
84,155 |
|
|
|
80,248 |
|
|
|
85,946 |
|
|
|
3.5 |
% |
|
|
1.6 |
% |
Money market
and savings |
|
1,648,022 |
|
|
|
1,667,096 |
|
|
|
1,590,037 |
|
|
|
1,528,000 |
|
|
|
1,543,299 |
|
|
|
-1.1 |
% |
|
|
6.8 |
% |
Time
deposits |
|
1,480,462 |
|
|
|
1,555,919 |
|
|
|
1,627,828 |
|
|
|
1,841,243 |
|
|
|
1,874,816 |
|
|
|
-4.8 |
% |
|
|
-21.0 |
% |
Total deposits |
$ |
4,582,068 |
|
|
$ |
4,698,962 |
|
|
$ |
4,690,141 |
|
|
$ |
4,762,068 |
|
|
$ |
4,820,175 |
|
|
|
-2.5 |
% |
|
|
-4.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At March 31, 2020, the Bank had $300 million in
borrowings from the FHLB with $1.22 billion of remaining unused
availability. As of the end of the first quarter, the Bank had
unused secured and unsecured facilities of $165.6 million. In
addition, the Bank will participate in the Paycheck Protection
Program Lending Facility, established by the Federal Reserve in the
second quarter of 2020.
At March 31, 2020 the Company had $20.0 million
of cash on deposit with the Bank. Hanmi believes it has ample
liquidity resources to address the uncertainties of the COVID-19
crisis as they have unfolded to date and remains vigilant in
assessing customer behavior and potential liquidity needs in this
uncertain period.
At March 31, 2020, stockholders’ equity was
$553.0 million, compared with $563.3 million at December 31, 2019.
Tangible common stockholders’ equity was $541.2 million, or 9.65%
of tangible assets, compared with $551.4 million, or 9.98% of
tangible assets at the end of the fourth quarter. Tangible book
value per share decreased to $17.67 from $17.90 in the prior
quarter. During the first quarter, Hanmi repurchased 135,400 shares
at an average price of $16.22 for an aggregate investment of
approximately $2.2 million. As of March 31, 2020, approximately 1.0
million shares remained available for future purchases under the
current stock repurchase program. Shortly following the federal
proclamation declaring a national emergency concerning the COVID-19
outbreak, Hanmi suspended its share repurchase program and does not
anticipate it will consider resumption of share repurchases until
the national emergency has been rescinded.
Hanmi continues to be well capitalized for
regulatory purposes, with a preliminary Tier 1 risk-based capital
ratio of 11.35% and a Total risk-based capital ratio of 14.50% at
March 31, 2020, versus 11.78% and 15.11%, respectively, for the
fourth quarter.
|
As of |
|
Amount Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-20 |
|
Q1-20 |
|
|
2020 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
vs. Q4-19 |
|
vs. Q1-19 |
Regulatory Capital ratios (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital |
|
14.50 |
% |
|
|
15.11 |
% |
|
|
15.07 |
% |
|
|
14.99 |
% |
|
|
14.17 |
% |
|
|
-0.61 |
|
|
|
0.33 |
|
Tier 1 risk-based capital |
|
11.35 |
% |
|
|
11.78 |
% |
|
|
11.91 |
% |
|
|
11.83 |
% |
|
|
11.94 |
% |
|
|
-0.43 |
|
|
|
-0.59 |
|
Common equity tier 1 capital |
|
10.93 |
% |
|
|
11.36 |
% |
|
|
11.49 |
% |
|
|
11.41 |
% |
|
|
11.52 |
% |
|
|
-0.43 |
|
|
|
-0.59 |
|
Tier 1 leverage capital ratio |
|
9.89 |
% |
|
|
10.15 |
% |
|
|
10.43 |
% |
|
|
10.20 |
% |
|
|
10.39 |
% |
|
|
-0.26 |
|
|
|
-0.5 |
|
Hanmi Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital |
|
14.04 |
% |
|
|
14.64 |
% |
|
|
14.65 |
% |
|
|
14.62 |
% |
|
|
14.37 |
% |
|
|
-0.60 |
|
|
|
-0.33 |
|
Tier 1 risk-based capital |
|
12.84 |
% |
|
|
13.39 |
% |
|
|
13.55 |
% |
|
|
13.54 |
% |
|
|
13.64 |
% |
|
|
-0.55 |
|
|
|
-0.80 |
|
Common equity tier 1 capital |
|
12.84 |
% |
|
|
13.39 |
% |
|
|
13.55 |
% |
|
|
13.54 |
% |
|
|
13.64 |
% |
|
|
-0.55 |
|
|
|
-0.80 |
|
Tier 1 leverage capital ratio |
|
11.31 |
% |
|
|
11.56 |
% |
|
|
11.86 |
% |
|
|
11.67 |
% |
|
|
11.88 |
% |
|
|
-0.25 |
|
|
|
-0.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Preliminary ratios for March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Loans 30 to 89
days past due and still accruing were 0.22% of loans at the end of
the first quarter of 2020, unchanged from the end of the fourth
quarter. At March 31, 2020, loans past due 90 days and still
accruing included a $5.5 million loan with film-tax credit
collateral and is in the process of collection.
Classified loans were $88.2 million at March 31,
2020 compared with $94.0 million at the end of the fourth quarter,
while special mention loans were $20.9 million at the end of the
first quarter compared with $26.6 million at December 31, 2019. The
decrease in classified loans primarily represents the charge-off of
the previously identified troubled loan relationship, offset by the
addition of two film-tax credit loans totaling $12.6 million.
Nonperforming loans were $52.2 million at the
end of the first quarter of 2020, or 1.15% of loans compared with
$63.8 million at the end of the fourth quarter, or 1.38% of the
portfolio. Nonperforming assets were $52.3 million at the end of
the first quarter of 2020, or 0.93% of total assets, compared with
$63.8 million, or 1.15% of assets, at the end of the prior quarter.
The decrease in nonperforming loans and nonperforming assets from
the prior quarter primarily reflects the charge-off described
above.
The Bank received numerous requests for
modification of scheduled payments on loans and leases representing
approximately $1.4 billion of the portfolio to date. The Bank is
processing these requests in accordance with the guidance issued by
the FDIC. In addition, the Bank is participating in the Paycheck
Protection Program and, during the second quarter, received more
than 3,000 applications representing more than $400 million in
potential loans under this program.
Gross charge-offs for the first quarter of 2020
were $27.5 million, $25.2 million of which related to the troubled
loan relationship. Gross charge-offs for the fourth quarter of 2019
were $1.0 million. Recoveries of previously charged-off loans for
the first quarter of 2020 were $0.2 million compared with $1.0
million for the preceding quarter. As a result, there were net
charge-offs of $27.3 million for the first quarter of 2020,
compared with net charge-offs of $55,000 for the preceding quarter.
For the first quarter of 2020, net charge-offs represented an
annualized 2.41% of average loans – 0.19% excluding the charge-off
of the troubled loan relationship – compared to nil net charge-offs
for the preceding quarter.
The allowance for credit losses was $66.5
million as of March 31, 2020 generating an allowance for credit
losses to loans of 1.46% compared with 1.33% at the end of the
prior quarter. The allowance included a $7.4 million specific
qualitative amount for the uncertainties arising from the COVID-19
crisis. Hanmi analyzed the segments of the portfolio believed to be
the most vulnerable to the crisis at this time – hospitality, food
service and retail – representing approximately $1.0 billion of the
portfolio. For this segment, Hanmi used varying revenue shocks to
identify post-stressed real estate secured loans with
debt-service-coverage ratios of one or less and compared those to
estimated post-stressed real estate valuations as well as peak
historical loss rates for unsecured loans in developing this
estimate. Hanmi recognizes the inherent uncertainties in this
estimate and the effects this crisis may have on our borrowers.
Hanmi expects the estimate of the allowance for credit losses will
change in future periods because of changes in economic conditions,
economic forecasts, and other factors.
|
As of or for the Three Months Ended (in
thousands) |
|
Amount Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-20 |
|
Q1-20 |
|
|
2020 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
vs. Q4-19 |
|
vs. Q1-19 |
Asset Quality Data and Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquent loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, 30 to
89 days past due and still accruing |
$ |
10,001 |
|
|
$ |
10,251 |
|
|
$ |
8,085 |
|
|
$ |
11,210 |
|
|
$ |
9,242 |
|
|
$ |
(250 |
) |
|
$ |
759 |
|
Delinquent
loans to total loans |
|
0.22 |
% |
|
|
0.22 |
% |
|
|
0.18 |
% |
|
|
0.25 |
% |
|
|
0.20 |
% |
|
|
-0.00 |
|
|
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Criticized loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
mention |
$ |
20,946 |
|
|
$ |
26,632 |
|
|
$ |
27,400 |
|
|
$ |
23,820 |
|
|
$ |
9,257 |
|
|
$ |
(5,686 |
) |
|
$ |
11,689 |
|
Classified |
|
88,223 |
|
|
|
94,025 |
|
|
|
80,734 |
|
|
|
75,686 |
|
|
|
53,087 |
|
|
|
(5,802 |
) |
|
|
35,136 |
|
Total criticized loans |
$ |
109,169 |
|
|
$ |
120,657 |
|
|
$ |
108,134 |
|
|
$ |
99,506 |
|
|
$ |
62,344 |
|
|
$ |
(11,488 |
) |
|
$ |
46,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans |
$ |
46,383 |
|
|
$ |
63,761 |
|
|
$ |
64,194 |
|
|
$ |
63,031 |
|
|
$ |
40,041 |
|
|
$ |
(17,378 |
) |
|
$ |
6,342 |
|
Loans 90
days or more past due and still accruing |
|
5,843 |
|
|
|
- |
|
|
|
544 |
|
|
|
- |
|
|
|
- |
|
|
|
5,843 |
|
|
|
5,843 |
|
Nonperforming loans |
|
52,226 |
|
|
|
63,761 |
|
|
|
64,738 |
|
|
|
63,031 |
|
|
|
40,041 |
|
|
|
(11,535 |
) |
|
|
12,185 |
|
Other real
estate owned, net |
|
63 |
|
|
|
63 |
|
|
|
330 |
|
|
|
507 |
|
|
|
622 |
|
|
|
- |
|
|
|
(559 |
) |
Nonperforming assets |
$ |
52,289 |
|
|
$ |
63,824 |
|
|
$ |
65,068 |
|
|
$ |
63,538 |
|
|
$ |
40,663 |
|
|
$ |
(11,535 |
) |
|
$ |
11,626 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to total loans |
|
1.15 |
% |
|
|
1.38 |
% |
|
|
1.43 |
% |
|
|
1.38 |
% |
|
|
0.88 |
% |
|
|
|
|
Nonperforming assets to assets |
|
0.93 |
% |
|
|
1.15 |
% |
|
|
1.18 |
% |
|
|
1.15 |
% |
|
|
0.73 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period |
$ |
61,408 |
|
|
$ |
50,712 |
|
|
$ |
49,386 |
|
|
$ |
32,896 |
|
|
$ |
31,974 |
|
|
|
|
|
Impact of
CECL adoption |
|
17,433 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Provision
for loan losses |
|
14,916 |
|
|
|
10,751 |
|
|
|
1,602 |
|
|
|
16,699 |
|
|
|
1,117 |
|
|
|
|
|
Net loan
(charge-offs) recoveries |
|
(27,257 |
) |
|
|
(55 |
) |
|
|
(276 |
) |
|
|
(209 |
) |
|
|
(195 |
) |
|
|
|
|
Balance at end of period |
$ |
66,500 |
|
|
$ |
61,408 |
|
|
$ |
50,712 |
|
|
$ |
49,386 |
|
|
$ |
32,896 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan
charge-offs to average loans (1) |
|
2.41 |
% |
|
|
0.00 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
|
|
Allowance
for credit losses to loans |
|
1.46 |
% |
|
|
1.33 |
% |
|
|
1.11 |
% |
|
|
1.08 |
% |
|
|
0.72 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses related to off-balance sheet
items: |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period |
$ |
2,397 |
|
|
$ |
1,542 |
|
|
$ |
1,333 |
|
|
$ |
1,100 |
|
|
$ |
1,439 |
|
|
|
|
|
Impact of
CECL adoption |
|
(335 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Provision
expense (income) for loss on off-balance sheet items |
|
823 |
|
|
|
855 |
|
|
|
209 |
|
|
|
233 |
|
|
|
(339 |
) |
|
|
|
|
Balance at end of period |
$ |
2,885 |
|
|
$ |
2,397 |
|
|
$ |
1,542 |
|
|
$ |
1,333 |
|
|
$ |
1,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments
to extend credit |
$ |
375,233 |
|
|
$ |
371,287 |
|
|
$ |
346,182 |
|
|
$ |
311,128 |
|
|
$ |
270,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Annualized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate DevelopmentsOn
January 23, 2020 Hanmi’s Board of Directors declared a cash
dividend on its common stock for the 2020 first quarter of $0.24
per share. The dividend was paid on February 27, 2020, to
stockholders of record as of the close of business on February 3,
2020.
Conference
Call
Management will host a conference call today, April 30, 2020 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 1-877-300-8521 before
2:00 p.m. PT, using access code HANMI. To listen to the call
online, either live or archived, visit the Investor Relations page
of Hanmi’s website at www.hanmi.com.
About Hanmi Financial
Corporation Headquartered in Los Angeles, California,
Hanmi Financial Corporation owns Hanmi Bank, which serves
multi-ethnic communities through its network of 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. 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. 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 our forward-looking statements to be reasonable, we
cannot guarantee future results, levels of activity, performance or
achievements.
Forward-looking 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
statements. These factors include the following:
- a 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;
- our ability to remediate any material weakness in our internal
controls over financial reporting;
- 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;
- a failure in or breach of our operational or security systems
or infrastructure, including cyberattacks;
- the failure to maintain current technologies;
- our inability to successfully implement future information
technology enhancements;
- difficult business and economic conditions that can adversely
affect our industry and business, including competition and lack of
soundness of other financial institutions, fraudulent activity and
negative publicity;
- risks associated with Small Business Administration loans;
- failure to attract or retain key employees;
- our ability to access cost-effective funding;
- fluctuations in real estate values;
- changes in accounting policies and practices;
- the imposition of tariffs or other domestic or international
governmental policies impacting the value of the products of our
borrowers;
- changes in governmental regulation, including, but not limited
to, any increase in FDIC insurance premiums;
- the 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;
- our ability to identify a suitable strategic partner or to
consummate a strategic transaction;
- the adequacy of our allowance for credit losses;
- our credit quality and the effect of credit quality on our
provision for loan losses and allowance for credit 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;
- changes in securities markets; and
- risks as it relates to cyber security against our information
technology and those of our third-party providers and vendors.
Further,
given its ongoing and dynamic nature, it is difficult to predict
the full impact of the COVID-19 outbreak on our business. The
extent of such impact will depend on future developments, which are
highly uncertain, including when the coronavirus can be controlled
and abated and when and how the economy may be reopened. As the
result of the COVID-19 pandemic and the related adverse local and
national economic consequences, we could be subject to any of the
following risks, any of which could have a material, adverse effect
on our business, financial condition, liquidity, and results of
operations:
- demand for our products and
services may decline, making it difficult to grow assets and
income;
- if the economy is unable to
substantially reopen, and high levels of unemployment continue for
an extended period of time, loan delinquencies, problem assets, and
foreclosures may increase, resulting in increased charges and
reduced income;
- collateral for
loans, especially real estate, may decline in value, which
could cause loan losses to increase;
- our allowance for credit losses may
have to be increased if borrowers experience financial
difficulties, which will adversely affect our net income;
- the net worth and liquidity of loan
guarantors may decline, impairing their ability to honor
commitments to us.
- as the result of the decline in the
Federal Reserve Board’s target federal funds rate to near 0%, the
yield on our assets may decline to a greater extent than the
decline in our cost of interest-bearing liabilities, reducing our
net interest margin and spread and reducing net income;
- a material decrease in net income
or a net loss over several quarters could result in a decrease in
the rate of our quarterly cash dividend,
- our cyber security risks are
increased as the result of an increase in the number of employees
working remotely; and
- FDIC premiums may increase if the
agency experiences additional resolution costs;
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, 2019, 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
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 |
|
|
2020 |
|
|
|
2019 |
|
|
Change |
|
|
2019 |
|
|
Change |
Assets |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
290,546 |
|
|
$ |
121,678 |
|
|
138.8 |
% |
|
$ |
169,830 |
|
|
71.1 |
% |
Securities available for sale, at fair value |
|
622,206 |
|
|
|
634,477 |
|
|
-1.9 |
% |
|
|
621,470 |
|
|
0.1 |
% |
Loans held for sale, at the lower of cost or fair value |
|
- |
|
|
|
6,020 |
|
|
-100.0 |
% |
|
|
7,140 |
|
|
-100.0 |
% |
Loans receivable, net of allowance for credit losses |
|
4,477,137 |
|
|
|
4,548,739 |
|
|
-1.6 |
% |
|
|
4,542,724 |
|
|
-1.4 |
% |
Accrued interest receivable |
|
11,536 |
|
|
|
11,742 |
|
|
-1.8 |
% |
|
|
13,397 |
|
|
-13.9 |
% |
Premises and equipment, net |
|
26,374 |
|
|
|
26,070 |
|
|
1.2 |
% |
|
|
28,426 |
|
|
-7.2 |
% |
Customers' liability on acceptances |
|
102 |
|
|
|
66 |
|
|
54.5 |
% |
|
|
750 |
|
|
-86.4 |
% |
Servicing assets |
|
6,727 |
|
|
|
6,956 |
|
|
-3.3 |
% |
|
|
7,978 |
|
|
-15.7 |
% |
Goodwill and other intangible assets, net |
|
11,808 |
|
|
|
11,873 |
|
|
-0.5 |
% |
|
|
12,105 |
|
|
-2.5 |
% |
Federal Home Loan Bank ("FHLB") stock, at cost |
|
16,385 |
|
|
|
16,385 |
|
|
0.0 |
% |
|
|
16,385 |
|
|
0.0 |
% |
Bank-owned life insurance |
|
53,058 |
|
|
|
52,782 |
|
|
0.5 |
% |
|
|
51,941 |
|
|
2.2 |
% |
Prepaid expenses and other assets |
|
101,812 |
|
|
|
101,396 |
|
|
0.4 |
% |
|
|
98,922 |
|
|
2.9 |
% |
Total assets |
$ |
5,617,690 |
|
|
$ |
5,538,184 |
|
|
1.4 |
% |
|
$ |
5,571,068 |
|
|
0.8 |
% |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
1,366,270 |
|
|
$ |
1,391,624 |
|
|
-1.8 |
% |
|
$ |
1,316,114 |
|
|
3.8 |
% |
Interest-bearing |
|
3,215,797 |
|
|
|
3,307,338 |
|
|
-2.8 |
% |
|
|
3,504,061 |
|
|
-8.2 |
% |
Total deposits |
|
4,582,068 |
|
|
|
4,698,962 |
|
|
-2.5 |
% |
|
|
4,820,175 |
|
|
-4.9 |
% |
Accrued interest payable |
|
9,693 |
|
|
|
11,215 |
|
|
-13.6 |
% |
|
|
14,437 |
|
|
-32.9 |
% |
Bank's liability on acceptances |
|
102 |
|
|
|
66 |
|
|
54.5 |
% |
|
|
750 |
|
|
-86.4 |
% |
Borrowings |
|
300,000 |
|
|
|
90,000 |
|
|
233.3 |
% |
|
|
- |
|
|
- |
|
Subordinated debentures |
|
118,523 |
|
|
|
118,377 |
|
|
0.1 |
% |
|
|
117,947 |
|
|
0.5 |
% |
Accrued expenses and other liabilities |
|
54,347 |
|
|
|
56,297 |
|
|
-3.5 |
% |
|
|
53,467 |
|
|
1.6 |
% |
Total liabilities |
|
5,064,732 |
|
|
|
4,974,917 |
|
|
1.8 |
% |
|
|
5,006,776 |
|
|
1.2 |
% |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
Common stock |
|
33 |
|
|
|
33 |
|
|
0.0 |
% |
|
|
33 |
|
|
0.0 |
% |
Additional paid-in capital |
|
576,585 |
|
|
|
575,816 |
|
|
0.1 |
% |
|
|
570,432 |
|
|
1.1 |
% |
Accumulated other comprehensive income (loss) |
|
11,867 |
|
|
|
3,382 |
|
|
250.9 |
% |
|
|
(1,882 |
) |
|
730.5 |
% |
Retained earnings |
|
83,355 |
|
|
|
100,551 |
|
|
-17.1 |
% |
|
|
104,771 |
|
|
-20.4 |
% |
Less treasury stock |
|
(118,882 |
) |
|
|
(116,515 |
) |
|
2.0 |
% |
|
|
(109,062 |
) |
|
9.0 |
% |
Total stockholders' equity |
|
552,958 |
|
|
|
563,267 |
|
|
-1.8 |
% |
|
|
564,292 |
|
|
-2.0 |
% |
Total liabilities and stockholders' equity |
$ |
5,617,690 |
|
|
$ |
5,538,184 |
|
|
1.4 |
% |
|
$ |
5,571,068 |
|
|
0.8 |
% |
|
|
|
|
|
|
|
|
|
|
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 |
|
2020 |
|
2019 |
|
Change |
|
2019 |
|
Change |
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
Interest and fees on loans receivable |
$ |
54,648 |
|
$ |
56,267 |
|
-2.9 |
% |
|
$ |
58,334 |
|
-6.3 |
% |
Interest on securities |
|
3,655 |
|
|
3,665 |
|
-0.3 |
% |
|
|
3,456 |
|
5.8 |
% |
Dividends on FHLB stock |
|
289 |
|
|
289 |
|
0.0 |
% |
|
|
289 |
|
0.0 |
% |
Interest on deposits in other banks |
|
333 |
|
|
478 |
|
-30.3 |
% |
|
|
335 |
|
-0.6 |
% |
Total interest and dividend income |
|
58,925 |
|
|
60,699 |
|
-2.9 |
% |
|
|
62,414 |
|
-5.6 |
% |
Interest expense: |
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
12,742 |
|
|
14,699 |
|
-13.3 |
% |
|
|
15,683 |
|
-18.8 |
% |
Interest on borrowings |
|
496 |
|
|
325 |
|
52.6 |
% |
|
|
71 |
|
598.6 |
% |
Interest on subordinated debentures |
|
1,712 |
|
|
1,739 |
|
-1.6 |
% |
|
|
1,772 |
|
-3.4 |
% |
Total interest expense |
|
14,950 |
|
|
16,763 |
|
-10.8 |
% |
|
|
17,526 |
|
-14.7 |
% |
Net interest
income before credit loss expense |
|
43,975 |
|
|
43,936 |
|
0.1 |
% |
|
|
44,888 |
|
-2.0 |
% |
Credit loss expense |
|
15,739 |
|
|
10,752 |
|
46.4 |
% |
|
|
1,117 |
|
1309.1 |
% |
Net interest
income after credit loss expense |
|
28,235 |
|
|
33,184 |
|
-14.9 |
% |
|
|
43,771 |
|
-35.5 |
% |
Noninterest income: |
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
2,400 |
|
|
2,589 |
|
-7.3 |
% |
|
|
2,358 |
|
1.8 |
% |
Trade finance and other service charges and fees |
|
986 |
|
|
1,267 |
|
-22.2 |
% |
|
|
1,124 |
|
-12.3 |
% |
Gain on sale of Small Business Administration ("SBA") loans |
|
1,154 |
|
|
1,499 |
|
-23.0 |
% |
|
|
926 |
|
24.6 |
% |
Net gain on sales of securities |
|
- |
|
|
- |
|
- |
|
|
|
725 |
|
-100.0 |
% |
Other operating income |
|
1,684 |
|
|
1,354 |
|
24.4 |
% |
|
|
1,121 |
|
50.2 |
% |
Total noninterest income |
|
6,224 |
|
|
6,709 |
|
-7.2 |
% |
|
|
6,254 |
|
-0.5 |
% |
Noninterest expense: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
17,749 |
|
|
17,752 |
|
-0.0 |
% |
|
|
15,738 |
|
12.8 |
% |
Occupancy and equipment |
|
4,475 |
|
|
4,547 |
|
-1.6 |
% |
|
|
4,521 |
|
-1.0 |
% |
Data processing |
|
2,669 |
|
|
2,122 |
|
25.8 |
% |
|
|
2,083 |
|
28.1 |
% |
Professional fees |
|
1,915 |
|
|
2,601 |
|
-26.4 |
% |
|
|
1,649 |
|
16.2 |
% |
Supplies and communications |
|
781 |
|
|
717 |
|
8.9 |
% |
|
|
844 |
|
-7.5 |
% |
Advertising and promotion |
|
734 |
|
|
1,165 |
|
-37.0 |
% |
|
|
760 |
|
-3.5 |
% |
Other operating expenses |
|
2,745 |
|
|
5,185 |
|
-47.1 |
% |
|
|
3,470 |
|
-20.9 |
% |
Total noninterest expense |
|
31,068 |
|
|
34,089 |
|
-8.9 |
% |
|
|
29,065 |
|
6.9 |
% |
Income
before tax |
|
3,391 |
|
|
5,804 |
|
-41.6 |
% |
|
|
20,960 |
|
-83.8 |
% |
Income tax expense |
|
1,041 |
|
|
2,720 |
|
-61.7 |
% |
|
|
6,288 |
|
-83.4 |
% |
Net
income |
$ |
2,350 |
|
$ |
3,084 |
|
-23.8 |
% |
|
$ |
14,672 |
|
-84.0 |
% |
|
|
|
|
|
|
|
|
|
- |
|
Basic
earnings per share: |
$ |
0.08 |
|
$ |
0.10 |
|
|
|
$ |
0.48 |
|
|
Diluted
earnings per share: |
$ |
0.08 |
|
$ |
0.10 |
|
|
|
$ |
0.48 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
30,469,022 |
|
|
30,692,487 |
|
|
|
|
30,667,378 |
|
|
Diluted |
|
30,472,899 |
|
|
30,723,958 |
|
|
|
|
30,720,772 |
|
|
Common
shares outstanding |
|
30,622,741 |
|
|
30,799,624 |
|
|
|
|
30,860,533 |
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial Corporation and
SubsidiariesAverage Balance, Average Yield
Earned, and Average Rate Paid (Unaudited)(In
thousands, except ratios)
|
Three Months Ended |
|
March 31, 2020 |
|
December 31, 2019 |
|
March 31, 2019 |
|
|
|
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 receivable (1) |
$ |
4,518,395 |
|
|
$ |
54,648 |
4.86 |
% |
|
$ |
4,487,998 |
|
|
$ |
56,267 |
4.97 |
% |
|
$ |
4,533,120 |
|
|
$ |
58,334 |
5.22 |
% |
Securities (2) |
|
623,711 |
|
|
|
3,655 |
2.34 |
% |
|
|
624,861 |
|
|
|
3,665 |
2.35 |
% |
|
|
589,547 |
|
|
|
3,597 |
2.44 |
% |
FHLB stock |
|
16,385 |
|
|
|
289 |
7.10 |
% |
|
|
16,385 |
|
|
|
289 |
7.00 |
% |
|
|
16,385 |
|
|
|
289 |
7.15 |
% |
Interest-bearing deposits in other banks |
|
104,513 |
|
|
|
333 |
1.28 |
% |
|
|
114,462 |
|
|
|
478 |
1.66 |
% |
|
|
53,022 |
|
|
|
335 |
2.56 |
% |
Total interest-earning assets |
|
5,263,004 |
|
|
|
58,925 |
4.50 |
% |
|
|
5,243,706 |
|
|
|
60,699 |
4.59 |
% |
|
|
5,192,074 |
|
|
|
62,555 |
4.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
97,896 |
|
|
|
|
|
|
104,591 |
|
|
|
|
|
|
108,992 |
|
|
|
|
Allowance for credit losses |
|
(61,054 |
) |
|
|
|
|
|
(50,978 |
) |
|
|
|
|
|
(31,982 |
) |
|
|
|
Other assets |
|
204,807 |
|
|
|
|
|
|
210,004 |
|
|
|
|
|
|
171,867 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
5,504,653 |
|
|
|
|
|
$ |
5,507,323 |
|
|
|
|
|
$ |
5,440,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand: interest-bearing |
$ |
82,934 |
|
|
$ |
21 |
0.10 |
% |
|
$ |
82,604 |
|
|
$ |
24 |
0.11 |
% |
|
$ |
85,291 |
|
|
$ |
29 |
0.14 |
% |
Money market and savings |
|
1,687,013 |
|
|
|
4,780 |
1.14 |
% |
|
|
1,640,162 |
|
|
|
5,616 |
1.36 |
% |
|
|
1,526,710 |
|
|
|
5,677 |
1.51 |
% |
Time deposits |
|
1,522,745 |
|
|
|
7,942 |
2.10 |
% |
|
|
1,605,276 |
|
|
|
9,059 |
2.24 |
% |
|
|
1,852,562 |
|
|
|
9,977 |
2.18 |
% |
Total interest-bearing deposits |
|
3,292,692 |
|
|
|
12,743 |
1.56 |
% |
|
|
3,328,042 |
|
|
|
14,699 |
1.75 |
% |
|
|
3,464,563 |
|
|
|
15,683 |
1.84 |
% |
Borrowings |
|
130,659 |
|
|
|
496 |
1.53 |
% |
|
|
75,500 |
|
|
|
325 |
1.71 |
% |
|
|
10,611 |
|
|
|
71 |
2.71 |
% |
Subordinated debentures |
|
118,444 |
|
|
|
1,712 |
5.78 |
% |
|
|
118,297 |
|
|
|
1,739 |
5.88 |
% |
|
|
117,863 |
|
|
|
1,772 |
6.01 |
% |
Total interest-bearing liabilities |
|
3,541,795 |
|
|
|
14,951 |
1.70 |
% |
|
|
3,521,839 |
|
|
|
16,763 |
1.89 |
% |
|
|
3,593,037 |
|
|
|
17,526 |
1.98 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities and equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits: noninterest-bearing |
|
1,333,697 |
|
|
|
|
|
|
1,342,524 |
|
|
|
|
|
|
1,251,659 |
|
|
|
|
Other liabilities |
|
69,205 |
|
|
|
|
|
|
74,862 |
|
|
|
|
|
|
36,218 |
|
|
|
|
Stockholders' equity |
|
559,956 |
|
|
|
|
|
|
568,098 |
|
|
|
|
|
|
560,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
5,504,653 |
|
|
|
|
|
$ |
5,507,323 |
|
|
|
|
|
$ |
5,440,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income (tax equivalent basis) |
|
|
$ |
43,974 |
|
|
|
|
$ |
43,936 |
|
|
|
|
$ |
45,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of deposits |
|
|
|
1.11 |
% |
|
|
|
|
1.25 |
% |
|
|
|
|
1.35 |
% |
Net
interest spread (taxable equivalent basis) |
|
|
|
2.80 |
% |
|
|
|
|
2.70 |
% |
|
|
|
|
2.91 |
% |
Net
interest margin (taxable equivalent basis) |
|
|
|
3.36 |
% |
|
|
|
|
3.32 |
% |
|
|
|
|
3.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes average 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 common 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 |
|
2020 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
Assets |
$ |
5,617,690 |
|
|
$ |
5,538,184 |
|
|
$ |
5,527,982 |
|
|
$ |
5,511,752 |
|
|
$ |
5,571,068 |
|
Less goodwill and other intangible assets |
|
(11,808 |
) |
|
|
(11,873 |
) |
|
|
(11,950 |
) |
|
|
(12,028 |
) |
|
|
(12,105 |
) |
Tangible
assets |
$ |
5,605,882 |
|
|
$ |
5,526,311 |
|
|
$ |
5,516,032 |
|
|
$ |
5,499,724 |
|
|
$ |
5,558,963 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity (1) |
$ |
552,958 |
|
|
$ |
563,267 |
|
|
$ |
574,527 |
|
|
$ |
564,458 |
|
|
$ |
564,292 |
|
Less goodwill and other intangible assets |
|
(11,808 |
) |
|
|
(11,873 |
) |
|
|
(11,950 |
) |
|
|
(12,028 |
) |
|
|
(12,105 |
) |
Tangible
stockholders' equity (1) |
$ |
541,150 |
|
|
$ |
551,394 |
|
|
$ |
562,577 |
|
|
$ |
552,430 |
|
|
$ |
552,187 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity to assets |
|
9.84 |
% |
|
|
10.17 |
% |
|
|
10.39 |
% |
|
|
10.24 |
% |
|
|
10.13 |
% |
Tangible
common equity to tangible assets (1) |
|
9.65 |
% |
|
|
9.98 |
% |
|
|
10.20 |
% |
|
|
10.04 |
% |
|
|
9.93 |
% |
|
|
|
|
|
|
|
|
|
|
Common
shares outstanding |
|
30,622,741 |
|
|
|
30,799,624 |
|
|
|
31,173,881 |
|
|
|
30,975,163 |
|
|
|
30,860,533 |
|
Tangible
common equity per common share |
$ |
17.67 |
|
|
$ |
17.90 |
|
|
$ |
18.05 |
|
|
$ |
17.83 |
|
|
$ |
17.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) There were no preferred shares outstanding at the periods
indicated. |
|
|
|
|
|
|
|
|
Hanmi Financial (NASDAQ:HAFC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Hanmi Financial (NASDAQ:HAFC)
Historical Stock Chart
From Jul 2023 to Jul 2024