Hanmi's Earnings Increased by 154% to $14.0 Million in the Fourth Quarter of 2012; Improvements in Loan Production, Asset
Hanmi's Earnings Increased by 154% to $14.0 Million in the Fourth Quarter of
2012; Improvements in Loan Production, Asset Quality and Operating Efficiency
Boost Earnings
LOS ANGELES, Jan. 24, 2013 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation
(Nasdaq:HAFC), the holding company for Hanmi Bank (the "Bank"), today reported
net income of $14.0 million, or $0.44 per diluted share, for the fourth
quarter of 2012, up 5.3% from $13.3 million, or $0.42 per diluted share, for
the third quarter of 2012, and more than double the earnings of $5.5 million,
or $0.22 per diluted share, for the fourth quarter of 2011. For the year ended
December 31, 2012, net income totaled $90.4 million, or $2.87 per diluted
share, compared to $28.1 million, or $1.38 per diluted share, for the year
ended December 31, 2011. Hanmi continued to benefit from a reversal of the
deferred tax asset ("DTA") valuation allowance, recording a $5.5 million gross
benefit which effectively offsets the tax obligation for the quarter. For the
full year, the reversal of the DTA valuation allowance contributed a net
benefit of $47.4 million, adding $1.50 per share to earnings on a fully taxed
basis. Tangible book value increased 3.9% to $11.97 per share at December 31,
2012, from $11.52 per share at September 30, 2012, and increased 32.7% from
$9.02 per share at December 31, 2011.
"During the fourth quarter of 2012, we celebrated two major milestones: the
Bank's thirty-year anniversary and the lifting of regulatory enforcement
actions by the Federal Reserve Bank of San Francisco and the California
Department of Financial Institutions. We are no longer constrained by any of
our former enforcement agreements, which allows us to focus on pursuing
important strategic options. Earlier this month, we announced that we are
exploring strategic alternatives for a possible business combination, merger
or sale transaction. This process reflects our proactive efforts to stay ahead
of the competition in an increasingly competitive market. We believe that
exploring strategic options is an important step necessary for our future.
However, there is no assurance that we will complete a strategic transaction."
said Jay S. Yoo, President and Chief Executive Officer.
Hanmi Financial Quarterly Financial
Highlights
(In Thousands, Except Per Share Data)
At or for the Three Months Ended
December 31, September 30, December 31,
2012 2012 2011
Net Income $ 13,979 $ 13,279 $ 5,506
Net Income Per Diluted Common Share $ 0.44 $ 0.42 $ 0.22
Total Assets $ 2,882,520 $ 2,841,857 $ 2,744,824
Total Net Loans $ 1,986,051 $ 1,892,813 $ 1,849,020
Total Deposits $ 2,395,963 $ 2,363,385 $ 2,344,910
Return on Average Assets 1.94% 1.87% 0.81%
Return on Average Stockholders' Equity 15.02% 14.97% 9.50%
Net Interest Margin 3.86% 3.69% 3.66%
Efficiency Ratio 57.66% 59.81% 69.03%
Tangible Common Equity Per Common $ 11.97 $ 11.52 $ 9.02
Share
Non-Performing Assets $ 38,053 $ 45,056 $ 52,558
Non-Performing Assets to Total Assets 1.32% 1.59% 1.91%
Allowance for Loan Losses to Total 3.09% 3.38% 4.64%
Gross Loans
Allowance for Loan Losses to Total 169.81% 147.92% 171.71%
Non-Performing Loans
Classified Assets $ 101,172 $ 131,233 $ 282,559
Classified Assets to Bank Tier 1 21.57% 28.60% 66.14%
Capital and ALLL
Hanmi Financial Capital Ratios:
Total Risk-Based Capital Ratio 20.65% 20.79% 18.66%
Tier 1 Leverage Capital Ratio 14.95% 14.71% 13.34%
Tangible Equity to Tangible Assets 13.09% 12.77% 10.36%
Ratio
Financial Highlights (at or for the period ended December 31, 2012)
* Net income for the fourth quarter of 2012 increased to $14.0 million, or
$0.44 per diluted share, up 5.3% from $13.3 million, or $0.42 per diluted
share, in the third quarter of 2012. For the year ended December 31, 2012,
net income totaled $90.4 million, or $2.87 per diluted share, compared to
$28.1 million, or $1.38 per diluted share, for the year ended December 31,
2011. For the year ended December 31, 2012, the reversal of the DTA
valuation allowance contributed a net of $47.4 million to net income and
added $1.50 per share to earnings on a fully taxed basis.
* Net interest margin ("NIM") improved to 3.86% in the fourth quarter of
2012, up from 3.69% in the third quarter of 2012 and 3.66% in the fourth
quarter of 2011. Yields on earning assets improved to 4.40% in the fourth
quarter of 2012, up from 4.35% in the third quarter of 2012, but down from
4.58% in the fourth quarter of 2011. For the year ended December 31, 2012,
NIM improved to 3.77% from 3.68% for the year ended December 31, 2011.
Cost of deposits continued to improve to 0.56% in the fourth quarter of
2012, down from 0.61% in the third quarter of 2012 and 0.89% in the fourth
quarter of 2011.
* New loan production for the fourth quarter of 2012 totaled $208.6 million,
consisting of $44.2 million of SBA 504 and 7(a) loans, $156.1 million of
other commercial term loans, and $7.5 million of lines of credit
disbursements. For the year ended December 31, 2012, total loan production
was $694.2 million, consisting of $155.3 million of SBA 504 and 7(a)
loans, $434.6 million of other commercial term loans, $20.6 million of
lines of credit disbursements, and purchases of $67.6 million of single
family residential mortgages in the first quarter of 2012 and $15.2
million of commercial real estate loans in the second quarter of 2012.
* Asset quality improved during the fourth quarter of 2012, as indicated by
lower levels of non-performing assets ("NPAs"), delinquent loans, and net
charge-offs.
* The ratio of classified assets to the Bank's tier 1 capital plus the
allowance for loan losses ("ALLL") dropped to 21.57% at December 31,
2012, from 28.60% at September 30, 2012, and from 66.14% at December 31,
2011. Classified assets at December 31, 2012 were $101.2 million
compared to $131.2 million and $282.6 million at September 30, 2012 and
December 31, 2011, respectively.
* NPAs declined to $38.1 million, or 1.32% of total assets, at December
31, 2012, from $45.1 million, or 1.59% of total assets, at September 30,
2012, and from $52.6 million, or 1.91% of total assets, at December 31,
2011.
* Delinquent loans, which are 30 to 89 days past due and still accruing,
totaled $2.4 million, or 0.12% of gross loans at December 31, 2012, down
from $4.0 million, or 0.20% of gross loans at September 30, 2012, and
down from $13.9 million, or 0.72% of gross loans, at December 31, 2011.
* Total net charge-offs during the fourth quarter of 2012 were $3.2
million, down from $5.9 million in the third quarter of 2012, and down
from $15.1 million in the fourth quarter of 2011.
* Classified loan inflows totaled $8.0 million for the fourth quarter of
2012, down from $10.7 million during the third quarter of 2012. Outflows
of classified loans totaled $38.4 million during the fourth quarter of
2012, as compared to $22.5 million in the third quarter of 2012.
* Operating efficiency improved to 57.66% during the fourth quarter of 2012
from 59.81% during the third quarter of 2012, and from 69.03% during the
fourth quarter of 2011, reflecting higher revenues and lower overall costs
of operations. For the year ended December 31, 2012, the efficiency ratio
improved to 61.07% from 67.22% for the year ended December 31, 2011.
* The Bank's tangible common equity to tangible assets ratio at December 31,
2012 was 15.29%, up from 14.96% at September 30, 2012, and up from 12.48%
at December 31, 2011.
* At the holding company level, the tangible common equity ratio was 13.09%
and the tangible book value was $11.97 per share at December 31, 2012,
representing increases from tangible common equity ratios of 12.77% and
10.36% and tangible book values of $11.52 and $9.02 per share, at
September 30, 2012 and December 31, 2011, respectively.
Capital Management
"Our capital position continues to be well above industry averages, with our
ratio of tangible equity to tangible assets at 13.09% at year end, compared to
an average of 8.16% for the SNL Bank and Thrift Index last quarter," said Mark
Yoon, Senior Vice President and Interim Chief Financial Officer.
Three Months Ended
December 31, September 30, December 31,
2012 2012 2011
Hanmi Financial
Total Risk-Based Capital Ratio 20.65% 20.79% 18.66%
Tier 1 Risk-Based Capital Ratio 19.37% 19.52% 17.36%
Tier 1 Leverage Capital Ratio 14.95% 14.71% 13.34%
Tangible Equity to Tangible Assets 13.09% 12.77% 10.36%
Ratio
Hanmi Bank
Total Risk-Based Capital Ratio 19.85% 19.91% 17.57%
Tier 1 Risk-Based Capital Ratio 18.58% 18.63% 16.28%
Tier 1 Leverage Capital Ratio 14.33% 14.05% 12.50%
Tangible Equity to Tangible Assets 15.29% 14.96% 12.48%
Ratio
Results of Operations
Net interest income, before the provision for credit losses, totaled $26.4
million for the fourth quarter of 2012, up 6.1% from $24.9 million for the
third quarter of 2012, and up 8.2% from $24.4 million for the fourth quarter
of 2011. Interest and dividend income increased 2.5% from the third quarter of
2012 but decreased 1.6% from the fourth quarter of 2011, while interest
expense fell 17.3% and 40.3% compared to the third quarter of 2012 and the
fourth quarter of 2011, respectively. For the year ended December 31, 2012,
net interest income, before the provision for credit losses, totaled $101.1
million, down slightly from $101.2 million for the year ended December 31,
2011.
Yield on loans was 5.38% for the fourth quarter of 2012, down from 5.44% for
the third quarter of 2012, and down from 5.55% for the fourth quarter of 2011.
Yield on investment securities, accounting for 16.6% of current quarter
average earning assets, was 2.29% for the fourth quarter of 2012, up from
2.22% for the third quarter of 2012, and up from 2.00% for the fourth quarter
of 2011. For the year ended December 31, 2012, average yield on loans was
5.47%, down from 5.56% for the year ended December 31, 2011. The yields on
investment securities were the same 2.22% for both years ended December 31,
2012 and 2011.
Cost of interest-bearing liabilities continues to decline, reflecting the
improving mix of the deposit base. Cost of interest-bearing liabilities was
0.83% in the fourth quarter of 2012, down 18 basis points compared to the
third quarter of 2012, and down 53 basis points compared to the fourth quarter
of 2011. Cost of deposits was 0.56% for the fourth quarter of 2012, down from
0.61% for the third quarter of 2012, and down from 0.89% for the fourth
quarter of 2011. For the year ended December 31, 2012, cost of interest
bearing liabilities declined 34 basis points to 1.07% and cost of deposits
declined 32 basis points to 0.68%, compared to 1.41% and 1.00%, respectively,
for the year ended December 31, 2011.
Net interest margin improved to 3.86% in the fourth quarter of 2012, up 17
basis points compared to the third quarter of 2012, and up 20 basis points
compared to the fourth quarter of 2011. "With improvement in the production of
new loans, we are starting to grow our loan portfolio and deploy excess
liquidity into higher yielding assets," said Yoon.
With steadily improving asset quality, there was no provision for credit
losses in the third and fourth quarters of 2012, compared to $4.0 million in
the fourth quarter of 2011. For the year ended December 31, 2012, the
provision for credit losses was $6.0 million, down 50% from $12.1 million for
the year ended December 31, 2011. The total net charge offs for the fourth
quarter of 2012 was $3.2 million, down from $5.9 million in the third quarter
of 2012, and down from $15.1 million in the fourth quarter of 2011. The
allowance for loan losses decreased to $63.3 million, or 3.09% of total gross
loans.
Net interest income, after the provision for credit losses, totaled $26.4
million in the fourth quarter of 2012, up from $24.9 million in the third
quarter of 2012, and up from $20.4 million in the fourth quarter of 2011. For
the year ended December 31, 2012, net interest income, after the provision for
credit losses, totaled $95.1 million, up 6.7% from $89.1 million for the year
ended December 31, 2011.
Non-interest income in the fourth quarter of 2012 was $7.5 million, up from
$6.5 million in the third quarter of 2012 and $6.3 million in the fourth
quarter of 2011, due mainly to increases in service charges, insurance
commissions, trade finance and gain on sales of SBA loans, partially offset by
net losses recognized from selling non-performing loans. The Bank recognized a
$2.7 million gain on sales of SBA loans, and a $1.2 million net loss on sales
of other loans in the fourth quarter of 2012, compared to a $1.8 million gain
on sales of SBA loans and a $515,000 net loss on sales of other loans in the
third quarter of 2012. For the year ended December 31, 2012, non-interest
income totaled $24.8 million, compared to $23.9 million for the year ended
December 31, 2011, due primarily to a $5.4 million increase in gain on selling
SBA loans, mainly offset by a $3.5 million increase in net losses on selling
non-performing loans.
Non-interest expense in the fourth quarter of 2012 was $19.5 million, compared
to $18.8 million in the third quarter of 2012. The increase was due mainly to
increases in deposit insurance premiums and regulatory assessments,
professional fees, and advertising and promotion expenses, partially offset by
decreases in other operating expenses, other real estate owned ("OREO")
expenses, and supplies and communications expenses. The increase in deposit
insurance premiums and regulatory assessments in the fourth quarter of 2012
was attributable to a year-to-date true-up adjustment of $300,000. Assuming
the assessment factors remain constant, the quarterly assessment for 2013 is
expected to be approximately $1.0 million. Professional fees increased
$632,000, or 56.8%, in the fourth quarter of 2012, due mainly to additional
professional services related to exploring strategic alternatives. Advertising
and promotion expenses increased by $220,000, or 21.5%, in the fourth quarter
of 2012, due mainly to special promotions and events related to the
celebration of the Bank's 30^th anniversary.
Non-interest expense for the year ended December 31, 2012 decreased by $7.2
million, or 8.6%, to $76.9 million from $84.0 million for the year ended
December 31, 2011. The decrease was mainly due to a $2.2 million unconsummated
capital offering expense in 2011, and reductions in deposit insurance
premiums, loan and OREO related expenses, data processing, and D&O liability
insurance, partially offset by an increase in salaries and employee benefits
due mainly to increased incentive bonuses, an increase in professional fees
related to exploring strategic alternatives, and an increase in advertising
and promotion expenses related to the celebration of the Bank's 30^th
anniversary.
Hanmi released the remainder of the valuation allowance of $5.5 million for
its deferred tax asset in the fourth quarter of 2012, and had a $374,000
provision for income taxes, which represented a 2.6% effective tax rate for
the fourth quarter of 2012. "We have released a total of $62.6 million DTA
valuation allowance, bringing the total income tax benefit to $47.4 million
for the year ended December 31, 2012. In 2013, our effective tax rate is
expected to be approximately 39% of pre-tax income." said Yoon.
Balance Sheet
Total assets were $2.88 billion at December 31, 2012, up 1.4% from $2.84
billion at September 30, 2012, and up 5.0% from $2.74 billion at December 31,
2011.
Loans receivable, excluding loans held for sale, increased 4.9% in the fourth
quarter of 2012 and 7.4% year-over-year to $1.99 billion at December 31, 2012,
up from $1.89 billion at September 30, 2012, and up from $1.85 billion at
December 31, 2011. Loans held for sale totaled $8.3 million at December 31,
2012, down from $10.7 million at September 30, 2012, and down from $22.6
million at December 31, 2011. Average gross loans, net of deferred loan fees,
increased to $2.03 billion for the fourth quarter of 2012, up from $1.96
billion for the third quarter of 2012, and up from $2.01 billion for the
fourth quarter of 2011.
Liquidity remained high with the total average investment securities portfolio
at $421.5 million during the fourth quarter of 2012, up from $386.5 million
during the third quarter of 2012 and even with $421.4 million during the
fourth quarter of 2011. Cash and cash equivalents totaled $268.0 million at
December 31, 2012, down from $302.4 million at September 30, 2012, but up from
$201.7 million at December 31, 2011.
Average deposits for the fourth quarter of 2012 increased slightly to $2.39
billion, up from $2.36 billion for the third quarter of 2012, and up from
$2.35 billion for the fourth quarter of 2011. The overall mix of funding
continued to improve with time deposits (particularly high-cost promotional
accounts) declining and transaction account balances increasing. Core
deposits, which are total deposits less time deposits equal to or greater than
$100,000, accounted for 74.3% of total deposits at December 31, 2012, up from
64.9% of total deposits at December 31, 2011. Demand deposit accounts
increased 13.6% to $720.9 million at December 31, 2012 compared to $634.5
million at December 31, 2011. Demand deposit accounts accounted for 30.1% of
total deposits at December 31, 2012, up from 27.1% of total deposits at
December 31, 2011. Time deposits equal to or greater than $100,000 were down
$206.0 million in the past twelve months. Total deposits were $2.40 billion at
December 31, 2012 compared to $2.34 billion at December 31, 2011.
At December 31, 2012, total stockholders' equity was $378.4 million, or $12.01
per share. Tangible common stockholders' equity was $377.0 million at December
31, 2012, or 13.09% of tangible assets, compared to $362.6 million, or 12.77%
of tangible assets, and $284.1 million, or 10.36% of tangible assets at
September 31, 2012 and December 31, 2011, respectively. Tangible book value
per share was $11.97 at December 31, 2012, up 4.0% from $11.52 at September
30, 2012, and up 32.7% from $9.02 at December 31, 2011.
Asset Quality
Non-performing loans ("NPLs"), excluding loans held for sale, decreased to
$37.3 million at December 31, 2012, down 16.6% from $44.7 million at September
30, 2012, and down 28.8% from $52.4 million at December 31, 2011. Troubled
debt restructurings ("TDRs"), which are loans that have been modified through
interest rate concessions, term extensions or payment alterations to assist
the borrowers in financial difficulty, totaled $35.7 million at December 31,
2012, down from $38.0 million at September 30, 2012, and down from $51.6
million at December 31, 2011. Of these TDRs, $18.8 million are included in
NPLs. $484,000 of NPLs were recorded at the lower of cost or fair value and
classified as held for sale at December 31, 2012, compared to $4.4 million at
September 30, 2012 and $15.0 million at December 31, 2011. The following table
shows NPLs, excluding loans held for sale, by loan category:
December 31, 2012 September 30, 2012 December 31, 2011
% to % to % to
Total Total Total
Amount NPL Amount NPL Amount NPL
Real Estate Loans:
Commercial Property
Retail $ 1,079 2.9% $ 1,102 2.5% $ 1,260 2.4%
Land 2,097 5.6% 2,037 4.6% 2,362 4.5%
Other -- 0.0% -- 0.0% 1,199 2.3%
Construction -- 0.0% 7,868 17.6% 8,310 15.9%
Residential Property 1,270 3.4% 1,411 3.2% 2,097 4.0%
Commercial & Industrial
Loans:
Commercial Term Loans
Unsecured 8,311 22.3% 8,106 18.1% 7,706 14.7%
Secured by Real Estate 8,679 23.3% 8,418 18.8% 11,725 22.4%
Commercial Lines of 1,521 4.1% 1,359 3.0% 1,431 2.7%
Credit
SBA 12,563 33.7% 13,048 29.2% 15,479 29.6%
Consumer Loans 1,759 4.7% 1,343 3.0% 809 1.5%
Total Non-Performing $ 37,279 100.0% $ 44,692 100.0% $ 52,378 100.0%
Loans
"In the fourth quarter of 2012, we continued to sell NPLs into the secondary
market, though not as actively as we have in the previous quarters. Fourth
quarter NPL sales totaled $8.2 million, bringing the year-end total NPL sales
to $42.3 million," said J.H. Son, Executive Vice President and Chief Credit
Officer. "While our strategy of selling loans before they are moved into
foreclosure has allowed us to efficiently reduce non-performing assets over
the past few years, we expect to have substantially fewer sales in the coming
year, which reflects the success of this program and the continuing
improvement in the performance of our loan portfolio. Reflecting the continued
improvement in asset quality, classified loans were $100.4 million, or 4.9% of
total gross loans, at December 31, 2012, down from $130.9 million, or 6.7% of
total gross loans, at September 31, 2012, and down from $282.4 million, or
14.6% of total gross loans, at December 31, 2011."
Delinquent loans that are less than 90 days past due and still accruing
interest decreased to $2.4 million at December 31, 2012, or 0.12% of gross
loans, down from $4.0 million, or 0.20% of gross loans, at September 30, 2012.
At December 31, 2012, the allowance for loan losses was $63.3 million, or
3.09% of gross loans. At December 31, 2012, the allowance for loan losses was
169.8% of NPLs, compared to 147.9% at September 30, 2012. For the fourth
quarter of 2012, net charge-offs were $3.2 million, compared to $5.9 million
in the third quarter of 2012 and $15.1 million in the fourth quarter of 2011.
Conference Call Information
Management will host a conference call today, January 24, 2013, at 1:30 p.m.
Pacific Time (4:30 p.m. ET) to discuss these results. This call will also be
broadcast live via the internet. Investment professionals and all current and
prospective stockholders are invited to access the live call on January 24,
2013 by dialing (480) 629-9692 at 1:30 p.m. Pacific Time, using access code
HANMI. To listen to the call online, either live or archived, visit the
Investor Relations page of Hanmi's website at www.hanmi.com.
About Hanmi Financial Corporation
Headquartered in Los Angeles, Hanmi Bank, a wholly-owned subsidiary of Hanmi
Financial Corporation, provides services to the multi-ethnic communities of
California, with 27 full-service offices in Los Angeles, Orange, San
Bernardino, San Francisco, Santa Clara and San Diego counties, and a loan
production office in Washington State. Hanmi Bank specializes in commercial,
SBA and trade finance lending, and is a recognized community leader. Hanmi
Bank's mission is to provide a full range of quality products and premier
services to its customers and to maximize stockholder value.
Forward-Looking Statements
This press release contains forward-looking statements, which are included in
accordance with the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. In some cases, you can identify forward-looking
statements by terminology such as "may," "will," "should," "could," "expects,"
"plans," "intends," "anticipates," "believes," "estimates," "predicts,"
"potential," or "continue," or the negative of such terms and other comparable
terminology. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future results,
levels of activity, performance or achievements. All statements other than
statements of historical fact are "forward–looking statements" for purposes of
federal and state securities laws, including, but not limited to, statements
about anticipated future operating and financial performance, financial
position and liquidity, business strategies, regulatory and competitive
outlook, investment and expenditure plans, capital and financing needs and
availability, plans and objectives of management for future operations,
developments regarding our capital plans, strategic alternatives for a
possible business combination, merger or sale transaction and other similar
forecasts and statements of expectation and statements of assumption
underlying any of the foregoing. These statements involve known and unknown
risks, uncertainties and other factors that may cause our actual results,
levels of activity, performance or achievements to differ from those expressed
or implied by the forward-looking statement. These factors include the
following: failure to maintain adequate levels of capital and liquidity to
support our operations; the effect of regulatory orders we have entered into
and potential future supervisory action against us or Hanmi Bank; general
economic and business conditions internationally, nationally and in those
areas in which we operate; volatility and deterioration in the credit and
equity markets; changes in consumer spending, borrowing and savings habits;
availability of capital from private and government sources; demographic
changes; competition for loans and deposits and failure to attract or retain
loans and deposits; fluctuations in interest rates and a decline in the level
of our interest rate spread; risks of natural disasters related to our real
estate portfolio; risks associated with Small Business Administration loans;
failure to attract or retain key employees; changes in governmental
regulation, including, but not limited to, any increase in FDIC insurance
premiums; ability to receive regulatory approval for Hanmi Bank to declare
dividends to Hanmi Financial; ability to identify a suitable strategic partner
or to consummate a strategic transaction; adequacy of our allowance for loan
losses; credit quality and the effect of credit quality on our provision for
credit losses and allowance for loan losses; changes in the financial
performance and/or condition of our borrowers and the ability of our borrowers
to perform under the terms of their loans and other terms of credit
agreements; our ability to control expenses; and changes in securities
markets. In addition, we set forth certain risks in our reports filed with the
U.S. Securities and Exchange Commission ("SEC"), including, in Item 1A of our
Form 10-K for the year ended December 31, 2011, our quarterly reports on Form
10-Q, and current and periodic reports that we will file with the SEC
hereafter, which could cause actual results to differ from those projected. We
undertake no obligation to update such forward-looking statements except as
required by law.
HANMI FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(UNAUDITED)
(In Thousands)
December 31, September Percentage December 31, Percentage
30,
2012 2012 Change 2011 Change
ASSETS
Cash and Due From $ 92,350 $ 72,053 28.2% $ 80,582 14.6%
Banks
Interest-Bearing
Deposits in Other 175,697 217,375 -19.2% 101,101 73.8%
Banks
Federal Funds Sold -- 13,000 -100.0% 20,000 -100.0%
Cash and Cash 268,047 302,428 -11.4% 201,683 32.9%
Equivalents
Restricted Cash 5,350 4,393 21.8% 1,818 194.3%
Term Federal Funds -- 55,000 -100.0% 115,000 -100.0%
Sold
Securities
Available for Sale, 451,060 410,210 10.0% 381,862 18.1%
at Fair Value
Securities Held to
Maturity, at -- -- NM 59,742 -100.0%
Amortized Cost
Loans Held for
Sale, at the Lower 8,306 10,736 -22.6% 22,587 -63.2%
of Cost or Fair
Value
Loans Receivable,
Net of Allowance 1,986,051 1,892,813 4.9% 1,849,020 7.4%
for Loan Losses
Accrued Interest 7,581 7,467 1.5% 7,829 -3.2%
Receivable
Premises and 15,150 15,412 -1.7% 16,603 -8.8%
Equipment, Net
Other Real Estate 774 364 112.6% 180 330.0%
Owned, Net
Customers'
Liability on 1,336 2,157 -38.1% 1,715 -22.1%
Acceptances
Servicing Assets 5,542 5,148 7.7% 3,720 49.0%
Other Intangible 1,335 1,376 -3.0% 1,533 -12.9%
Assets, Net
Investment in
Federal Home Loan 17,800 19,621 -9.3% 22,854 -22.1%
Bank Stock, at Cost
Investment in
Federal Reserve 12,222 10,261 19.1% 8,558 42.8%
Bank Stock, at Cost
Deferred Tax Assets 50,998 48,826 4.4% -- NM
Current Tax Assets 9,030 11,689 -22.7% 9,073 -0.5%
Bank-Owned Life 29,054 28,816 0.8% 28,289 2.7%
Insurance
Prepaid Expenses 2,084 2,239 -6.9% 1,598 30.4%
Other Assets 10,800 12,901 -16.3% 11,160 -3.2%
TOTAL ASSETS $ 2,882,520 $ 2,841,857 1.4% $ 2,744,824 5.0%
LIABILITIES AND
STOCKHOLDERS'
EQUITY
LIABILITIES:
Deposits:
Noninterest-Bearing $ 720,931 $ 694,345 3.8% $ 634,466 13.6%
Interest-Bearing 1,675,032 1,669,040 0.4% 1,710,444 -2.1%
Total Deposits 2,395,963 2,363,385 1.4% 2,344,910 2.2%
Accrued Interest 11,775 15,266 -22.9% 16,032 -26.6%
Payable
Bank's Liability on 1,336 2,157 -38.1% 1,715 -22.1%
Acceptances
Federal Home Loan 2,935 3,029 -3.1% 3,303 -11.1%
Bank Advances
Junior Subordinated 82,406 82,406 0.0% 82,406 0.0%
Debentures
Accrued Expenses
and Other 9,741 11,627 -16.2% 10,850 -10.2%
Liabilities
TOTAL LIABILITIES 2,504,156 2,477,870 1.1% 2,459,216 1.8%
STOCKHOLDERS'
EQUITY:
Common Stock 257 257 0.0% 257 0.0%
Additional Paid-In 550,140 549,814 0.1% 549,744 0.1%
Capital
Unearned (74) (92) -19.6% (166) -55.4%
Compensation
Accumulated Other
Comprehensive 5,418 5,364 1.0% 3,524 53.7%
Income
Accumulated Deficit (107,519) (121,498) -11.5% (197,893) -45.7%
Less Treasury Stock (69,858) (69,858) 0.0% (69,858) 0.0%
TOTAL STOCKHOLDERS' 378,364 363,987 3.9% 285,608 32.5%
EQUITY
TOTAL LIABILITIES
AND STOCKHOLDERS' $ 2,882,520 $ 2,841,857 1.4% $ 2,744,824 5.0%
EQUITY
HANMI FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENT OF
OPERATIONS (UNAUDITED)
(In Thousands, Except
Per Share Data)
Three Months Ended
December September Percentage December Percentage
31, 30, 31,
2012 2012 Change 2011 Change
INTEREST AND DIVIDEND
INCOME:
Interest and Fees on $ 27,418 $ 26,781 2.4% $ 28,162 -2.6%
Loans
Taxable Interest on 2,138 1,992 7.3% 1,979 8.0%
Investment Securities
Tax-Exempt Interest on 95 98 -3.1% 100 -5.0%
Investment Securities
Interest on Term 22 191 -88.5% 182 -87.9%
Federal Funds Sold
Interest on Federal 7 20 -65.0% 5 40.0%
Funds Sold
Interest on
Interest-Bearing 153 142 7.7% 72 112.5%
Deposits in Other Banks
Dividends on Federal 179 154 16.2% 121 47.9%
Reserve Bank Stock
Dividends on Federal 127 24 429.2% 19 568.4%
Home Loan Bank Stock
Total Interest and 30,139 29,402 2.5% 30,640 -1.6%
Dividend Income
INTEREST EXPENSE:
Interest on Deposits 3,366 3,639 -7.5% 5,301 -36.5%
Interest on Federal 39 40 -2.5% 44 -11.4%
Home Loan Bank Advances
Interest on Junior 303 804 -62.3% 767 -60.5%
Subordinated Debentures
Interest on Other -- -- NM 94 -100.0%
Borrowings
Total Interest Expense 3,708 4,483 -17.3% 6,206 -40.3%
NET INTEREST INCOME
BEFORE PROVISION FOR 26,431 24,919 6.1% 24,434 8.2%
CREDIT LOSSES
Provision for Credit -- -- NM 4,000 -100.0%
Losses
NET INTEREST INCOME
AFTER PROVISION FOR 26,431 24,919 6.1% 20,434 29.3%
CREDIT LOSSES
NON-INTEREST INCOME:
Service Charges on 3,191 2,851 11.9% 3,182 0.3%
Deposit Accounts
Insurance Commissions 1,235 1,092 13.1% 1,097 12.6%
Trade Finance & Other
Service Charges and 1,235 1,111 11.2% 1,191 3.7%
Fees
Bank-Owned Life 238 235 1.3% 239 -0.4%
Insurance Income
Net Gain on Sales of 2,678 1,772 51.1% 2,931 -8.6%
SBA Loans
Net Loss on Sales of (1,247) (515) 142.1% (2,548) -51.1%
Other Loans
Net Gain on Sales of 4 10 -60.0% 1 300.0%
Investment Securities
Other-than-temporary
Impairment Loss on -- (176) -100.0% -- NM
Investment Securities
Other Operating Income 136 140 -2.9% 255 -46.7%
Total Non-Interest 7,470 6,520 14.6% 6,348 17.7%
Income
NON-INTEREST EXPENSE:
Salaries and Employee 9,224 9,148 0.8% 9,433 -2.2%
Benefits
Occupancy and Equipment 2,585 2,623 -1.4% 2,533 2.1%
Deposit Insurance
Premiums and Regulatory 1,249 283 341.3% 1,631 -23.4%
Assessments
Data Processing 1,179 1,211 -2.6% 1,356 -13.1%
Other Real Estate Owned (33) 352 -109.4% 71 -146.5%
Expense
Professional Fees 1,744 1,112 56.8% 1,114 56.6%
Directors and Officers 298 296 0.7% 736 -59.5%
Liability Insurance
Supplies and 567 669 -15.2% 537 5.6%
Communications
Advertising and 1,243 1,023 21.5% 888 40.0%
Promotion
Loan-Related Expense 75 164 -54.3% 196 -61.7%
Amortization of Other 41 41 0.0% 131 -68.7%
Intangible Assets
Other Operating 1,376 1,882 -26.9% 2,623 -47.5%
Expenses
Total Non-Interest 19,548 18,804 4.0% 21,249 -8.0%
Expense
INCOME BEFORE PROVISION 14,353 12,635 13.6% 5,533 159.4%
FOR INCOME TAXES
(Benefit) Provision for 374 (644) -158.1% 27 1285.2%
Income Taxes
NET INCOME $ 13,979 $ 13,279 5.3% $ 5,506 153.9%
EARNINGS PER SHARE:
Basic $ 0.44 $ 0.42 $ 0.22
Diluted $ 0.44 $ 0.42 $ 0.22
WEIGHTED-AVERAGE SHARES
OUTSTANDING:
Basic 31,479,921 31,475,976 24,905,479
Diluted 31,549,580 31,545,111 24,924,935
COMMON SHARES 31,496,540 31,489,201 31,489,201
OUTSTANDING
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(In Thousands, Except Per Share Data)
Year Ended
December 31, December 31, Percentage
2012 2011 Change
INTEREST AND DIVIDEND INCOME:
Interest and Fees on Loans $ 108,982 $ 117,671 -7.4%
Taxable Interest on Investment Securities 8,418 9,768 -13.8%
Tax-Exempt Interest on Investment 394 216 82.4%
Securities
Interest on Term Federal Funds Sold 706 276 155.8%
Interest on Federal Funds Sold 60 27 122.2%
Interest on Interest-Bearing Deposits in 422 315 34.0%
Other Banks
Dividends on Federal Reserve Bank Stock 609 458 33.0%
Dividends on Federal Home Loan Bank Stock 209 76 175.0%
Total Interest and Dividend Income 119,800 128,807 -7.0%
INTEREST EXPENSE:
Interest on Deposits 15,877 23,958 -33.7%
Interest on Federal Home Loan Bank 165 662 -75.1%
Advances
Interest on Junior Subordinated 2,703 2,915 -7.3%
Debentures
Interest on Other Borrowings -- 95 -100.0%
Total Interest Expense 18,745 27,630 -32.2%
NET INTEREST INCOME BEFORE PROVISION FOR 101,055 101,177 -0.1%
CREDIT LOSSES
Provision for Credit Losses 6,000 12,100 -50.4%
NET INTEREST INCOME AFTER PROVISION FOR 95,055 89,077 6.7%
CREDIT LOSSES
NON-INTEREST INCOME:
Service Charges on Deposit Accounts 12,146 12,826 -5.3%
Insurance Commissions 4,857 4,500 7.9%
Trade Finance & Other Service Charges and 4,615 4,677 -1.3%
Fees
Bank-Owned Life Insurance Income 1,110 939 18.2%
Net Gain on Sales of SBA Loans 9,923 4,543 118.4%
Net Loss on Sales of Other Loans (9,481) (6,020) 57.5%
Net Gain on Sales of Investment 1,396 1,635 -14.6%
Securities
Other-than-temporary Impairment Loss on (292) -- NM
Investment Securities
Other Operating Income 538 751 -28.4%
Total Non-Interest Income 24,812 23,851 4.0%
NON-INTEREST EXPENSE:
Salaries and Employee Benefits 36,931 35,465 4.1%
Occupancy and Equipment 10,424 10,353 0.7%
Deposit Insurance Premiums and Regulatory 4,431 6,630 -33.2%
Assessments
Data Processing 4,941 5,601 -11.8%
Other Real Estate Owned Expense 344 1,620 -78.8%
Professional Fees 4,694 4,187 12.1%
Directors and Officers Liability 1,186 2,940 -59.7%
Insurance
Supplies and Communications 2,370 2,323 2.0%
Advertising and Promotion 3,876 2,993 29.5%
Loan-Related Expense 527 827 -36.3%
Amortization of Other Intangible Assets 198 700 -71.7%
Expense related to Unconsummated Capital -- 2,220 -100.0%
Offerings
Other Operating Expenses 6,939 8,189 -15.3%
Total Non-Interest Expense 76,861 84,048 -8.6%
INCOME BEFORE PROVISION FOR INCOME TAXES 43,006 28,880 48.9%
(Benefit) Provision for Income Taxes (47,368) 733 -6562.2%
NET INCOME $ 90,374 $ 28,147 221.1%
EARNINGS PER SHARE:
Basic $ 2.87 $ 1.38
Diluted $ 2.87 $ 1.38
WEIGHTED-AVERAGE SHARES OUTSTANDING:
Basic 31,475,510 20,403,549
Diluted 31,515,582 20,422,984
COMMON SHARES OUTSTANDING 31,496,540 31,489,201
HANMI FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(UNAUDITED)
(In Thousands)
Three Months Ended
December September Percentage December Percentage
31, 30, 31,
2012 2012 Change 2011 Change
NET INCOME $ 13,979 $ 13,279 5.3% $ 5,506 153.9%
OTHER COMPREHENSIVE
INCOME, NET OF TAX
Unrealized Gain on
Securities
Unrealized Holding Gain
Arising (Decreasing) 121 1,655 -92.7% (382) 131.7%
During Period
Unrealized Holding Gain
Arising from the transfer
of Held-to-Maturity -- 1,968 -100.0% -- NM
Securities to
Available-for-Sale
Securities
Less: Reclassification
Adjustment for Loss (4) 166 -102.4% (1) 300.0%
(Gain) Included in Net
Income
Unrealized Gain on -- -- NM (1) -100.0%
Interest Rate Swap
Unrealized Gain (Loss) on
Interest-Only Strip of -- 2 -100.0% 6 -100.0%
Servicing Assets
Income Taxes Related to
Items of Other (63) (1,581) -96.0% -- NM
Comprehensive Income
Other Comprehensive 54 2,210 -97.6% (378) -114.3%
Income
COMPREHENSIVE INCOME
ATTRIBUTABLE TO $ 14,033 $ 15,489 -9.4% $ 5,128 173.7%
SHAREHOLDERS
Year Ended
December December Percentage
31, 31,
2012 2011 Change
NET INCOME $ 90,374 $ 28,147 221.1%
OTHER COMPREHENSIVE
INCOME, NET OF TAX
Unrealized Gain on
Securities
Unrealized Holding Gain 2,369 8,123 -70.8%
Arising During Period
Unrealized Holding Gain
Arising from the transfer
of Held-to-Maturity 1,968 -- NM
Securities to
Available-for-Sale
Securities
Less: Reclassification
Adjustment for (Gain) (1,104) (1,635) -32.5%
Included in Net Income
Unrealized Gain on 9 2 350.0%
Interest Rate Swap
Unrealized Gain (Loss) on
Interest-Only Strip of (4) (2) 100.0%
Servicing Assets
Income Taxes Related to
Items of Other (1,344) -- NM
Comprehensive Income
Other Comprehensive 1,894 6,488 -70.8%
Income
COMPREHENSIVE INCOME
ATTRIBUTABLE TO $ 92,268 $ 34,635 166.4%
SHAREHOLDERS
HANMI FINANCIAL CORPORATION
AND SUBSIDIARIES
SELECTED
FINANCIAL DATA
(UNAUDITED)
(In Thousands)
Three Months Ended Twelve Months Ended
December 31, September December 31, December 31, December 31,
30,
2012 2012 2011 2012 2011
AVERAGE
BALANCES:
Average Gross
Loans, Net of $ 2,026,122 $ 1,958,819 $ 2,012,008 $ 1,993,367 $ 2,114,546
Deferred Loan
Fees ^(1)
Average
Investment $ 421,520 $ 386,513 $ 421,386 $ 412,554 $ 446,198
Securities
Average
Interest-Earning $ 2,731,473 $ 2,694,571 $ 2,656,213 $ 2,686,425 $ 2,752,696
Assets
Average Total $ 2,872,897 $ 2,829,778 $ 2,708,364 $ 2,792,352 $ 2,787,707
Assets
Average Deposits $ 2,388,725 $ 2,361,534 $ 2,350,558 $ 2,349,082 $ 2,404,655
Average $ 85,390 $ 85,482 $ 99,545 $ 85,760 $ 153,148
Borrowings
Average
Interest-Bearing $ 1,767,640 $ 1,766,709 $ 1,814,548 $ 1,758,135 $ 1,957,077
Liabilities
Average
Stockholders' $ 370,307 $ 352,980 $ 229,868 $ 328,016 $ 200,517
Equity
Average Tangible $ 368,945 $ 351,577 $ 228,116 $ 326,589 $ 198,626
Equity
PERFORMANCE
RATIOS:
Return on
Average Assets ^ 1.94% 1.87% 0.81% 3.24% 1.01%
(2)
Return on
Average 15.02% 14.97% 9.50% 27.55% 14.04%
Stockholders'
Equity ^(2)
Return on
Average Tangible 15.07% 15.03% 9.58% 27.67% 14.17%
Equity ^(2)
Efficiency Ratio 57.66% 59.81% 69.03% 61.07% 67.22%
Net Interest 3.57% 3.34% 3.22% 3.40% 3.27%
Spread ^(2),(3)
Net Interest 3.86% 3.69% 3.66% 3.77% 3.68%
Margin ^ (2),(3)
ALLOWANCE FOR
LOAN LOSSES:
Balance at
Beginning of $ 66,107 $ 71,893 $ 100,792 $ 89,936 $ 146,059
Period
Provision
Charged to 407 117 4,241 7,157 12,536
Operating
Expense
Charge-Offs, Net (3,209) (5,903) (15,097) (33,788) (68,659)
of Recoveries
Balance at End $ 63,305 $ 66,107 $ 89,936 $ 63,305 $ 89,936
of Period
ASSET QUALITY
RATIOS:
Net Loan
Charge-Offs to 0.63% 1.21% 3.00% 1.70% 3.25%
Average Gross
Loans
Allowance for
Loan Losses to 3.09% 3.38% 4.64% 3.09% 4.64%
Total Gross
Loans
Allowance for
Loan Losses to
Total 169.81% 147.92% 171.71% 169.81% 171.71%
Non-Performing
Loans
Non-Performing
Assets to Total 1.32% 1.59% 1.91% 1.32% 1.91%
Assets
Non-Performing
Loans to Gross 1.82% 2.28% 2.70% 1.82% 2.70%
Loans
Total
Non-Performing
Assets to 60.11% 68.16% 58.44% 60.11% 58.44%
Allowance for
Loan Losses
ALLOWANCE FOR
OFF-BALANCE
SHEET ITEMS:
Balance at
Beginning of $ 2,231 $ 2,348 $ 3,222 $ 2,981 $ 3,417
Period
Provision
Charged to (407) (117) (241) (1,157) (436)
Operating
Expense
Balance at End $ 1,824 $ 2,231 $ 2,981 $ 1,824 $ 2,981
of Period
NON-PERFORMING
ASSETS:
Non-Accrual $ 37,279 $ 44,692 $ 52,378
Loans
Loans 90 Days or
More Past Due -- -- --
and Still
Accruing
Total
Non-Performing 37,279 44,692 52,378
Loans
Other Real
Estate Owned, 774 364 180
Net
Total
Non-Performing 38,053 45,056 52,558
Assets
Non-Performing
Loans Classified 484 4,421 15,023
as Loans Held
for Sale
Non-Performing
Assets $ 38,537 $ 49,477 $ 67,581
(including Loans
Held for Sale)
DELINQUENT LOANS
(30 to 89 Days $ 2,371 $ 4,005 $ 13,945
Past Due and
Still Accruing)
Delinquent Loans
to Total Gross 0.12% 0.20% 0.72%
Loans
(1) Loans Held for Sale are included in average gross loans.
(2) Annualized
(3) Amounts calculated on a fully taxable equivalent basis using the current
statutory federal tax rate.
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA, CONTINUED (UNAUDITED)
(In Thousands)
At or for the Three Months Ended
December 31, September 30, December 31,
2012 2012 2011
LOAN PORTFOLIO:
Real Estate Loans $ 787,094 $ 736,287 $ 696,999
Residential Loans 101,778 103,774 52,921
Commercial and Industrial Loans 1,123,012 1,079,814 1,145,474
Consumer Loans 36,676 38,415 43,346
Total Gross Loans 2,048,560 1,958,290 1,938,740
Deferred Loan Costs 796 630 216
Gross Loans, Net of Deferred Loan Fees 2,049,356 1,958,920 1,938,956
Allowance for Loan Losses (63,305) (66,107) (89,936)
Loans Receivable, Net 1,986,051 1,892,813 1,849,020
Loans Held for Sale, at the Lower of 8,306 10,736 22,587
Cost or Fair Value
Total Loans Receivable, Net $ 1,994,357 $ 1,903,549 $ 1,871,607
LOAN MIX:
Real Estate Loans 38.4% 37.6% 36.0%
Residential Loans 5.0% 5.3% 2.7%
Commercial and Industrial Loans 54.8% 55.1% 59.1%
Consumer Loans 1.8% 2.0% 2.2%
Total Gross Loans 100.0% 100.0% 100.0%
DEPOSIT PORTFOLIO:
Demand - Noninterest-Bearing $ 720,931 $ 694,345 $ 634,466
Savings 114,302 111,654 104,664
Money Market Checking and NOW Accounts 575,744 563,785 449,854
Time Deposits of $100,000 or More 616,187 635,802 822,165
Other Time Deposits 368,799 357,799 333,761
Total Deposits $ 2,395,963 $ 2,363,385 $ 2,344,910
DEPOSIT MIX:
Demand - Noninterest-Bearing 30.1% 29.4% 27.1%
Savings 4.8% 4.7% 4.5%
Money Market Checking and NOW Accounts 24.0% 23.9% 19.2%
Time Deposits of $100,000 or More 25.7% 26.9% 35.1%
Other Time Deposits 15.4% 15.1% 14.1%
Total Deposits 100.0% 100.0% 100.0%
CAPITAL RATIOS:
Hanmi Financial
Total Risk-Based Capital Ratio 20.65% 20.79% 18.66%
Tier 1 Risk-Based Capital Ratio 19.37% 19.52% 17.36%
Tier 1 Leverage Capital Ratio 14.95% 14.71% 13.34%
Tangible Equity to Tangible Assets 13.09% 12.77% 10.36%
Ratio
Hanmi Bank
Total Risk-Based Capital Ratio 19.85% 19.91% 17.57%
Tier 1 Risk-Based Capital Ratio 18.58% 18.63% 16.28%
Tier 1 Leverage Capital Ratio 14.33% 14.05% 12.50%
Tangible Equity to Tangible Assets 15.29% 14.96% 12.48%
Ratio
HANMI FINANCIAL CORPORATION AND
SUBSIDIARIES
AVERAGE BALANCE, AVERAGE YIELD EARNED AND AVERAGE RATE PAID (UNAUDITED)
(In Thousands)
Three Months Ended
December 31, 2012 September 30, 2012 December 31, 2011
Interest Average Interest Average Interest Average
Average Income / Yield / Average Income / Yield / Average Income / Yield /
Balance Expense Rate Balance Expense Rate Balance Expense Rate
ASSETS
Interest-Earning
Assets:
Gross Loans, Net of $ 2,026,122 $ 27,418 5.38% $ 1,958,819 $ 26,781 5.44% $ 2,012,008 $ 28,162 5.55%
Deferred Loan Fees
Municipal
Securities - 46,203 456 3.95% 44,887 452 4.03% 44,913 451 4.02%
Taxable
Municipal
Securities - Tax 12,731 146 4.59% 12,587 151 4.80% 12,987 153 4.71%
Exempt
Obligations of
Other U.S. 82,995 387 1.87% 74,345 280 1.51% 83,927 324 1.54%
Government Agencies
Other Debt 279,591 1,295 1.85% 254,694 1,260 1.98% 279,559 1,204 1.72%
Securities
Equity Securities 30,971 306 3.95% 30,886 178 2.31% 31,930 140 1.75%
Federal Funds Sold 7,127 7 0.39% 17,925 20 0.44% 4,961 5 0.40%
Term Federal Funds 6,685 22 1.31% 78,967 191 0.96% 77,717 182 0.93%
Sold
Interest-Bearing
Deposits in Other 239,048 153 0.25% 221,461 142 0.26% 108,211 72 0.26%
Banks
Total
Interest-Earning 2,731,473 30,190 4.40% 2,694,571 29,455 4.35% 2,656,213 30,693 4.58%
Assets
Noninterest-Earning
Assets:
Cash and Cash 73,567 70,591 69,635
Equivalents
Allowance for Loan (65,228) (71,481) (99,182)
Losses
Other Assets 133,085 136,097 81,698
Total
Noninterest-Earning 141,424 135,207 52,151
Assets
TOTAL ASSETS $ 2,872,897 $ 2,829,778 $ 2,708,364
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-Bearing
Liabilities:
Deposits:
Savings $ 112,566 $ 477 1.69% $ 111,432 $ 516 1.84% $ 104,754 $ 600 2.27%
Money Market
Checking and NOW 583,259 772 0.53% 555,454 859 0.62% 449,998 644 0.57%
Accounts
Time Deposits of 623,780 1,312 0.84% 660,036 1,467 0.88% 825,444 3,082 1.48%
$100,000 or More
Other Time Deposits 362,645 805 0.88% 354,305 797 0.89% 334,807 975 1.16%
FHLB Advances 2,984 39 5.20% 3,076 40 5.17% 3,349 44 5.21%
Other Borrowings -- -- 0.00% -- -- 0.00% 13,790 94 2.70%
Junior Subordinated 82,406 303 1.46% 82,406 804 3.88% 82,406 767 3.69%
Debentures
Total
Interest-Bearing 1,767,640 3,708 0.83% 1,766,709 4,483 1.01% 1,814,548 6,206 1.36%
Liabilities
Noninterest-Bearing
Liabilities:
Demand Deposits 706,475 680,307 635,555
Other Liabilities 28,475 29,782 28,393
Total
Noninterest-Bearing 734,950 710,089 663,948
Liabilities
Total Liabilities 2,502,590 2,476,798 2,478,496
Shareholders' 370,307 352,980 229,868
Equity
TOTAL LIABILITIES
AND SHAREHOLDERS' $ 2,872,897 $ 2,829,778 $ 2,708,364
EQUITY
NET INTEREST INCOME $ 26,482 $ 24,972 $ 24,487
COST OF DEPOSITS 0.56% 0.61% 0.89%
NET INTEREST SPREAD 3.57% 3.34% 3.22%
NET INTEREST MARGIN 3.86% 3.69% 3.66%
HANMI FINANCIAL CORPORATION AND
SUBSIDIARIES
AVERAGE BALANCE, AVERAGE YIELD EARNED AND AVERAGE RATE PAID (UNAUDITED)
(In Thousands)
Year Ended
December 31, 2012 December 31,2011
Interest Average Interest Average
Average Income / Yield / Average Income / Yield /
Balance Expense Rate Balance Expense Rate
ASSETS
Interest-Earning
Assets:
Gross Loans, Net of $ 1,993,367 $ 108,982 5.47% $ 2,114,546 $ 117,671 5.56%
Deferred Loan Fees
Municipal
Securities - 45,213 1,796 3.97% 21,740 884 4.07%
Taxable
Municipal
Securities - Tax 12,902 606 4.70% 6,544 332 5.07%
Exempt
Obligations of
Other U.S. 77,053 1,372 1.78% 121,961 1,963 1.61%
Government Agencies
Other Debt 277,386 5,250 1.89% 295,953 6,921 2.34%
Securities
Equity Securities 31,356 818 2.61% 33,573 534 1.59%
Federal Funds Sold 14,178 60 0.42% 5,857 27 0.46%
Term Federal Funds 70,478 706 1.00% 38,693 276 0.71%
Sold
Interest-Bearing
Deposits in Other 164,492 422 0.26% 113,829 315 0.28%
Banks
Total
Interest-Earning 2,686,425 120,012 4.47% 2,752,696 128,923 4.68%
Assets
Noninterest-Earning
Assets:
Cash and Cash 71,123 68,255
Equivalents
Allowance for Loan (75,914) (119,233)
Losses
Other Assets 110,718 85,989
Total
Noninterest-Earning 105,927 35,011
Assets
TOTAL ASSETS $ 2,792,352 $ 2,787,707
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-Bearing
Liabilities:
Deposits:
Savings $ 110,349 $ 2,152 1.95% $ 109,272 $ 2,757 2.52%
Money Market
Checking and NOW 529,976 3,085 0.58% 465,840 3,461 0.74%
Accounts
Time Deposits of 681,173 7,290 1.07% 913,643 13,855 1.52%
$100,000 or More
Other Time Deposits 350,877 3,350 0.95% 315,174 3,885 1.23%
FHLB Advances 3,354 165 4.92% 66,191 662 1.00%
Other Borrowings -- -- 0.00% 4,551 95 2.09%
Junior Subordinated 82,406 2,703 3.28% 82,406 2,915 3.54%
Debentures
Total
Interest-Bearing 1,758,135 18,745 1.07% 1,957,077 27,630 1.41%
Liabilities
Noninterest-Bearing
Liabilities:
Demand Deposits 676,707 600,726
Other Liabilities 29,494 29,387
Total
Noninterest-Bearing 706,201 630,113
Liabilities
Total Liabilities 2,464,336 2,587,190
Shareholders' 328,016 200,517
Equity
TOTAL LIABILITIES
AND SHAREHOLDERS' $ 2,792,352 $ 2,787,707
EQUITY
NET INTEREST INCOME $ 101,267 $ 101,293
COST OF DEPOSITS 0.68% 1.00%
NET INTEREST SPREAD 3.40% 3.27%
NET INTEREST MARGIN 3.77% 3.68%
Non-GAAP Financial Measures
Tangible Common Equity to Tangible Assets Ratio
Tangible common equity to tangible assets ratio is supplemental financial
information determined by a method other than in accordance with U.S.
generally accepted accounting principles ("GAAP"). This non-GAAP measure is
used by management in the analysis of Hanmi Financial and Hanmi Bank's capital
strength. Tangible equity is calculated by subtracting goodwill and other
intangible assets from total stockholders' equity. Banking and financial
institution regulators also exclude goodwill and other intangible assets from
total stockholders' equity when assessing the capital adequacy of a financial
institution. Management believes the presentation of this financial measure
excluding the impact of these items provides useful supplemental information
that is essential to a proper understanding of the capital strength of Hanmi
Financial and Hanmi Bank. This disclosure should not be viewed as a
substitution for results determined in accordance with GAAP, nor is it
necessarily comparable to non-GAAP performance measures that may be presented
by other companies.
The following table reconciles this non-GAAP performance measure to the GAAP
performance measure for the periods indicated:
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (UNAUDITED)
(In Thousands, Except Per Share
Data)
December 31, September 30, December 31,
2012 2012 2011
HANMI FINANCIAL CORPORATION
Total Assets $ 2,882,520 $ 2,841,857 $ 2,744,824
Less Other Intangible Assets (1,335) (1,376) (1,533)
Tangible Assets $ 2,881,185 $ 2,840,481 $ 2,743,291
Total Stockholders' Equity $ 378,364 $ 363,987 $ 285,608
Less Other Intangible Assets (1,335) (1,376) (1,533)
Tangible Stockholders' Equity $ 377,029 $ 362,611 $ 284,075
Total Stockholders' Equity to Total 13.13% 12.81% 10.41%
Assets Ratio
Tangible Common Equity to Tangible 13.09% 12.77% 10.36%
Assets Ratio
Common Shares Outstanding 31,496,540 31,489,201 31,487,924
Tangible Common Equity Per Common $ 11.97 $ 11.52 $ 9.02
Share
HANMI BANK
Total Assets $ 2,877,041 $ 2,836,931 $ 2,739,577
Less Other Intangible Assets -- -- (34)
Tangible Assets $ 2,877,041 $ 2,836,931 $ 2,739,543
Total Stockholders' Equity $ 439,986 $ 424,546 $ 342,023
Less Other Intangible Assets -- -- (34)
Tangible Stockholders' Equity $ 439,986 $ 424,546 $ 341,989
Total Stockholders' Equity to Total 15.29% 14.96% 12.48%
Assets Ratio
Tangible Common Equity to Tangible 15.29% 14.96% 12.48%
Assets Ratio
CONTACT: Hanmi Financial Corporation
Mark (Shick) Yoon, CPA CVA
SVP & Interim Chief Financial Officer, Chief Strategy Officer
Direct Phone: 213-427-5636
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement
Rate this Page