• Hanmi Reports Second Quarter 2022 Results

    来源: Nasdaq GlobeNewswire / 26 7月 2022 16:05:03   America/New_York

    LOS ANGELES, July 26, 2022 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the second quarter of 2022.

    Net income for the second quarter of 2022 was $25.1 million, or $0.82 per diluted share, up 21.0% from $20.7 million, or $0.68 per diluted share for the first quarter of 2022. The sequential quarter increase in net income reflects growth in net interest income and noninterest income, carefully managed noninterest expenses and a modest credit loss expense. Return on average assets and return on average equity for the second quarter of 2022 were 1.45% and 14.92%, respectively.

    CEO Commentary

    “We delivered another quarter of solid results,” said Bonnie Lee, President and Chief Executive Officer of Hanmi Financial Corporation. “Our strong earnings were supported by record loan production, an increased net interest margin, and excellent asset quality, while we continued to exercise disciplined expense management. This outstanding performance for the quarter has made the first half of 2022 one of Hanmi’s strongest starts to a year.”

    “During the quarter, we built strong momentum across our diverse business lines, which fueled our stellar loan production, driving 6.0% sequential growth in our loans. We generated record loan production in our residential mortgage platform, equipment finance and SBA group, validating the investments we have made in these key business lines. In addition, our deposit-gathering initiatives, designed to build and expand business banking relationships, continue to bear fruit. Deposits increased by 3.4% in the quarter, primarily driven by noninterest-bearing demand deposits, which grew by 3.9% in the quarter and 8.1% year-to-date. These core deposits now comprise 46.5% of total deposits and continue to help hold down our cost of deposits.”

    “Our team remains focused on execution in both the pursuit of new customers and expanding our existing relationships. The strategic investments we made over the past several quarters in new talent and technology continue to fuel our strategic initiatives to grow and diversify our business. With a well-defined strategic plan in place and our ongoing focus on execution, we are well positioned to continue to deliver disciplined growth and attractive returns for our shareholders.”

    Second Quarter 2022 Highlights:        

    • Second quarter net income increased 21.0% to $25.1 million, or $0.82 per diluted share from $20.7 million, or $0.68 per share for the first quarter of 2022.
    • Loans receivable grew to $5.66 billion at June 30, 2022, up 6.0% sequentially from the end of the first quarter and 9.8% from year-end on record loan production of $642.2 million for the second quarter.
    • Deposits were $5.98 billion at June 30, 2022, up 3.4% sequentially from the end of the first quarter and 3.3% from year-end; noninterest-bearing demand deposits increased 3.9% sequentially and were 46.5% of the deposit portfolio.
    • Net interest income was $59.0 million for the second quarter, up 15.9% from the first quarter.
    • Net interest margin (taxable-equivalent) increased to 3.55% for the second quarter, up 45 basis points from the first quarter; the yield on loans increased 13 basis points sequentially while the cost of interest-bearing deposits rose five basis points.
    • Credit loss expense was $1.6 million for the second quarter and the allowance for credit losses was $73.1 million at June 30, 2022, up from $71.5 million at March 31, 2022; the ratio of the allowance to loans however declined to 1.29% on higher loan balances.
    • Nonaccrual loans improved 3.7% to $11.0 million and nonperforming assets were 0.17% of total assets at June 30, 2022.
    • Noninterest income increased 9.3% to $9.3 million for second quarter from the first quarter on higher SBA gain on sale income as well as on higher overall service charges, fees and other income.
    • Noninterest expense was $31.5 million for the second quarter, down 0.7% from the first quarter; the efficiency ratio for the second quarter improved to 46.05% from 53.29% for the first quarter.
    • Hanmi’s tangible common equity to tangible assets was 8.74% at the end of the second quarter and it had a Common equity Tier 1 capital ratio of 11.07% and a Total capital ratio of 14.32%.

    For more information about Hanmi, please see the Q2 2022 Investor Update (and Supplemental Financial Information), which is available on the Bank’s website at www.hanmi.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov. Also, please refer to “Non-GAAP Financial Measures” herein for further details of the presentation of certain non-GAAP financial measures.

    Quarterly Results              
    (Dollars in thousands, except per share data)       
                   
     As of or for the Three Months Ended Amount Change 
     June 30, March 31, December 31, September 30, June 30, Q2-22 Q2-22 
      2022   2022   2021   2021   2021  vs. Q1-22 vs. Q2-21 
                   
    Net income$25,050  $20,695  $33,331  $26,565  $22,122  $4,355  $2,928 
    Net income per diluted common share$0.82  $0.68  $1.09  $0.86  $0.72  $0.14  $0.10 
                   
    Assets$6,955,968  $6,737,052  $6,858,587  $6,776,533  $6,578,856  $218,916  $377,112 
    Loans receivable$5,655,403  $5,337,500  $5,151,541  $4,858,865  $4,820,092  $317,903  $835,311 
    Deposits$5,979,390  $5,783,170  $5,786,269  $5,729,536  $5,629,830  $196,220  $349,560 
                   
    Return on average assets 1.45%  1.22%  1.93%  1.58%  1.38%  0.23   0.07 
    Return on average stockholders' equity 14.92%  12.74%  20.89%  17.13%  14.91%  2.18   0.01 
                   
    Net interest margin 3.55%  3.10%  2.96%  3.07%  3.19%  0.45   0.36 
    Efficiency ratio(1) 46.05%  53.29%  53.81%  52.01%  52.66%  -7.24   -6.61 
                   
    Tangible common equity to tangible assets(2) 8.74%  9.07%  9.23%  8.98%  9.01%  -0.33   -0.27 
    Tangible common equity per common share(2)$19.91  $20.02  $20.79  $19.96  $19.27  $(0.11) $0.64 
                   
                   
    (1)Noninterest expense divided by net interest income plus noninterest income.           
    (2 )Refer to "Non-GAAP Financial Measures" for further details.            
                   

    Results of Operations
    Net interest income was $59.0 million for the second quarter of 2022 compared with $51.0 million for the first quarter of 2022. Second quarter interest and fees on loans receivable increased 11.0%, or $5.9 million, from the preceding quarter primarily due to a 6.5% increase in the average balance of loans receivable and a 13 basis point increase in average loan yields. Interest on securities in the second quarter increased $0.4 million from the first quarter primarily due to a $14.8 million increase in the average balance and a 16 basis point increase in the average yield. Second quarter loan prepayment penalties were $0.5 million compared with $0.4 million for the first quarter. Total interest expense for the second quarter decreased $1.8 million from the preceding quarter primarily due to the first quarter redemption of the 5.45% 2027 Subordinated Notes due March 30, 2027 (the “2027 Subordinated Notes”) and the related charge for unamortized debt issuance costs, partially offset by a five basis point increase in the average rate paid on interest-bearing deposits.

                   
     As of or For the Three Months Ended(in thousands) Percentage Change 
     Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Q2-22 Q2-22 
    Net Interest Income 2022   2022   2021   2021   2021  vs. Q1-22 vs. Q2-21 
                   
    Interest and fees on loans receivable(1)$59,855  $53,924  $52,240  $52,961  $52,785   11.0%  13.4% 
    Interest on securities 2,930   2,516   1,821   1,865   1,404   16.5%  108.7% 
    Dividends on FHLB stock 242   248   248   245   242   -2.4%  0.0% 
    Interest on deposits in other banks 193   216   302   329   176   -10.6%  9.7% 
    Total interest and dividend income$63,220  $56,904  $54,611  $55,400  $54,607   11.1%  15.8% 
                   
    Interest on deposits 2,457   2,013   2,236   2,466   3,003   22.1%  -18.2% 
    Interest on borrowings 370   337   364   409   447   9.8%  -17.2% 
    Interest on subordinated debentures 1,349   3,598   2,515   2,545   1,585   -62.5%  -14.9% 
    Total interest expense 4,176   5,948   5,115   5,420   5,035   -29.8%  -17.1% 
    Net interest income$59,044  $50,956  $49,496  $49,980  $49,572   15.9%  19.1% 
                   

    Net interest margin (taxable-equivalent) was 3.55% for the second quarter, up 45 basis points from the first quarter. The improvement was due to a combination of factors including lower subordinated debt costs, an increase in loan yields due to a shift in the composition of average loans together with a generally higher level of interest rates, and a significant decline in lower-yielding interest-bearing deposits held at other banks.

    The yield on loans for the second quarter of 2022 increased 13 basis points to 4.31% from 4.18% for the first quarter of 2022 as average loans for the quarter increased 6.5% and average commercial and industrial loans grew to 12.7% of the average loan portfolio from 11.1%. Average interest-earning assets for the second quarter remained relatively unchanged sequentially at $6.67 billion: however, average interest-bearing deposits in other banks fell 72.4% quarter-over-quarter to $136.5 million from $494.9 million.

    The cost of interest-bearing deposits increased five basis points to 0.31% for the second quarter compared with 0.26% for the previous quarter. Interest expense on subordinated debentures fell to $1.3 million for the second quarter from $3.6 million for the first quarter primarily due to the redemption of the 2027 Subordinated Notes and the related $1.1 million charge for unamortized debt issuance costs.

                   
     For the Three Months Ended(in thousands) Percentage Change 
     Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Q2-22 Q2-22 
    Average Earning Assets and Interest-bearing Liabilities 2022   2022   2021   2021   2021  vs. Q1-22 vs. Q2-21 
    Loans receivable(1)$5,572,504  $5,231,672  $4,896,952  $4,684,570  $4,753,297   6.5%  17.2% 
    Securities(2) 945,291   930,505   914,148   878,866   812,805   1.6%  16.3% 
    FHLB stock 16,385   16,385   16,385   16,385   16,385   0.0%  0.0% 
    Interest-bearing deposits in other banks 136,473   494,887   802,901   872,783   659,934   -72.4%  -79.3% 
    Average interest-earning assets$6,670,653  $6,673,449  $6,630,386  $6,452,604  $6,242,421   -0.0%  6.9% 
                   
    Demand: interest-bearing$122,771  $124,892  $122,602  $115,233  $112,252   -1.7%  9.4% 
    Money market and savings 2,139,488   2,106,008   2,078,659   2,033,876   2,032,102   1.6%  5.3% 
    Time deposits 894,345   937,044   1,013,681   1,061,359   1,136,903   -4.6%  -21.3% 
    Average interest-bearing deposits 3,156,604   3,167,944   3,214,942   3,210,468   3,281,257   -0.4%  -3.8% 
    Borrowings 140,245   130,556   137,500   143,750   150,091   7.4%  -6.6% 
    Subordinated debentures 129,029   213,171   214,899   163,340   119,170   -39.5%  8.3% 
    Average interest-bearing liabilities$3,425,878  $3,511,671  $3,567,341  $3,517,558  $3,550,518   -2.4%  -3.5% 
                   
    Average Noninterest Bearing Deposits              
    Demand deposits - noninterest bearing$2,716,297  $2,634,398  $2,561,297  $2,444,759  $2,223,172   3.1%  22.2% 
                   
    (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 Three Months Ended Amount Change 
     Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Q2-22 Q2-22 
    Average Yields and Rates 2022   2022   2021   2021   2021  vs. Q1-22 vs. Q2-21 
    Loans receivable(1) 4.31%  4.18%  4.23%  4.49%  4.45%  0.13   -0.14  
    Securities (2) 1.27%  1.11%  0.83%  0.87%  0.69%  0.16   0.58  
    FHLB stock 5.93%  6.14%  6.00%  5.93%  5.93%  -0.21   0.00  
    Interest-bearing deposits in other banks 0.57%  0.18%  0.15%  0.15%  0.11%  0.39   0.46  
    Interest-earning assets 3.80%  3.46%  3.27%  3.41%  3.51%  0.34   0.29  
                   
    Interest-bearing deposits 0.31%  0.26%  0.28%  0.30%  0.37%  0.05   -0.06  
    Borrowings 1.10%  1.05%  1.05%  1.13%  1.19%  0.05   -0.09  
    Subordinated debentures 4.14%  6.75%  4.68%  6.23%  5.32%  -2.61   -1.18  
    Interest-bearing liabilities 0.49%  0.69%  0.57%  0.61%  0.57%  -0.20   -0.08  
                   
    Net interest margin (taxable equivalent basis) 3.55%  3.10%  2.96%  3.07%  3.19%  0.45   0.36  
                   
    Cost of deposits 0.17%  0.14%  0.15%  0.17%  0.22%  0.03   -0.05  
                   
    (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 second quarter of 2022, Hanmi recorded a $1.6 million credit loss expense comprised of a $1.6 million provision for loan losses and a $45,000 negative provision for off-balance sheet items. For the first quarter of 2022, the Company recorded a $1.4 million recovery of credit loss expense comprised of a $1.1 million negative provision for loan losses and a $0.3 million negative provision for off-balance sheet items.

    Second quarter 2022 noninterest income increased to $9.3 million from $8.5 million for the first quarter of 2022 primarily due to a $0.3 million increase in gains on the sale of SBA 7(a) loans, a $0.3 million increase in trade finance and other service charges and fees, and a $0.3 million increase in other operating income. The volume of SBA loans sold in the second quarter increased 41.5% to $41.9 million from $29.6 million in the first quarter while trade premiums declined to 7.97% for the second quarter from 9.85% for the first quarter.

                   
     For the Three Months Ended(in thousands) Percentage Change 
     Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Q2-22 Q2-22 
    Noninterest Income 2022   2022   2021   2021   2021  vs. Q1-22 vs. Q2-21 
    Service charges on deposit accounts$2,875  $2,875  $3,007  $3,437  $2,344   0.0%  22.7% 
    Trade finance and other service charges and fees 1,416   1,142   1,160   1,188   1,259   24.0%  12.5% 
    Servicing income 663   734   666   768   540   -9.7%  22.8% 
    Bank-owned life insurance income 246   244   252   251   252   0.8%  -2.4% 
    All other operating income 1,336   1,004   1,017   978   908   33.1%  47.1% 
    Service charges, fees & other 6,536   5,999   6,102   6,622   5,303   9.0%  23.3% 
                   
    Gain on sale of SBA loans 2,774   2,521   3,791   5,842   3,508   10.0%  -20.9% 
    Net gain (loss) on sales of securities -   -   (598)  -   -   0.0%  0.0% 
    Gain (loss) on sale of bank premises -   -   -   45   -   0.0%  0.0% 
    Legal settlement -   -   -   -   75   0.0%  -100.0% 
    Total noninterest income$9,310  $8,520  $9,295  $12,509  $8,886   9.3%  4.8% 
                   

    Noninterest expense decreased slightly to $31.5 million for the second quarter of 2022 from $31.7 million for the first quarter. Salaries and employee benefits expense increased by $1.1 million reflecting annual merit increases and higher estimated incentive compensation for 2022 loan production. Offsetting this effect was a $0.2 million decline in professional fees, a $0.2 million decline in advertising and promotion expense, and a $0.7 million decrease in other operating expenses. The efficiency ratio improved to 46.05% for the second quarter from 53.29% for the prior quarter.

                   
     For the Three Months Ended(in thousands) Percentage Change 
     Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Q2-22 Q2-22 
      2022   2022   2021   2021   2021  vs. Q1-22 vs. Q2-21 
    Noninterest Expense              
    Salaries and employee benefits$18,779  $17,717  $18,644  $18,795  $18,302   6.0%  2.6% 
    Occupancy and equipment 4,597   4,646   4,840   5,037   4,602   -1.1%  -0.1% 
    Data processing 3,114   3,236   3,228   2,934   2,915   -3.8%  6.8% 
    Professional fees 1,231   1,430   1,443   1,263   1,413   -13.9%  -12.9% 
    Supplies and communication 581   665   795   741   733   -12.6%  -20.7% 
    Advertising and promotion 660   817   964   953   374   -19.2%  76.5% 
    All other operating expenses 2,463   3,186   1,980   2,906   2,607   -22.7%  -5.5% 
    Subtotal 31,425   31,697    31,894    32,629    30,946   -0.9%  1.5% 
                   
    Other real estate owned expense (income) 50   12   -   23   (47)  -316.7%  206.4% 
    Repossessed personal property expense (income) -   (17)  (258)  (150)  (116)  100.0%  100.0% 
    Total noninterest expense$31,475  $31,692  $31,636  $32,502  $30,783   -0.7%  2.2% 
                   

    Hanmi recorded a provision for income taxes of $10.2 million for the second quarter of 2022, representing an effective tax rate of 29.0%, compared with $8.5 million, also representing an effective tax rate of 29.0% for the first quarter.

    Financial Position
    Total assets at June 30, 2022 increased 3.2%, or $218.9 million, to $6.96 billion from $6.74 billion at March 31, 2022. The increase reflects the 3.4%, or $196.6 million, growth in deposits as well as the $20.0 million increase in borrowings.

    Loans receivable, before the allowance for credit losses, were $5.66 billion at June 30, 2022, up 6.0% from $5.34 billion at March 31, 2022. Loans held for sale, representing the guaranteed portion of SBA 7(a) loans, were $18.5 million at the end of the second quarter of 2022 compared with $15.6 million at the end of the first quarter.

                   
     As of (in thousands) Percentage Change 
     Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Q2-22 Q2-22 
      2022   2022   2021   2021   2021  vs. Q1-22 vs. Q2-21 
    Loan Portfolio              
    Commercial real estate loans$3,829,656  $3,771,453  $3,701,864  $3,528,506  $3,452,014   1.5%  10.9% 
    Residential/consumer loans 521,576   432,805   400,548   354,860   348,730   20.5%  49.6% 
    Commercial and industrial loans 766,813   633,107   561,830   516,357   587,729   21.1%  30.5% 
    Leases 537,358   500,135   487,299   459,142   431,619   7.4%  24.5% 
    Loans receivable 5,655,403   5,337,500   5,151,541   4,858,865   4,820,092   6.0%  17.3% 
    Loans held for sale 18,528   15,617   13,342   17,881   36,030   18.6%  -48.6% 
    Total$5,673,931  $5,353,117  $5,164,883  $4,876,746  $4,856,122   6.0%  16.8% 
                   
                   
     As of   
     Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,     
      2022   2022   2021   2021   2021      
    Composition of Loan Portfolio              
    Commercial real estate loans 67.5%  70.5%  71.6%  72.3%  71.1%     
    Residential/consumer loans 9.2%  8.1%  7.8%  7.3%  7.2%     
    Commercial and industrial loans 13.5%  11.8%  10.9%  10.6%  12.1%     
    Leases 9.5%  9.3%  9.4%  9.4%  8.9%     
    Loans receivable 99.7%  99.7%  99.7%  99.6%  99.3%     
    Loans held for sale 0.3%  0.3%  0.3%  0.4%  0.7%     
    Total 100.0%  100.0%  100.0%  100.0%  100.0%     
                   

    New loan production was a record $642.2 million for the second quarter at an average rate of 4.35% while $230.5 million of loans paid-off during the quarter at an average rate of 4.43%.

    Commercial real estate loan production for the second quarter was $271.0 million. Commercial and industrial loan production was $96.2 million, SBA loan production was $67.9 million, equipment finance lease production was $95.4 million and residential mortgage loan production was $111.8 million. The strong loan growth for the second quarter was supported by the increase in core deposits, a reduction in excess liquidity (cash and due from banks), and to a lesser extent an increase in borrowings.

     For the Three Months Ended (in thousands) 
     Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 
      2022   2022   2021   2021   2021  
    New Loan Production          
    Commercial real estate loans$271,006  $233,295  $291,543  $214,380  $186,136  
    Commercial and industrial loans 96,187   98,432   116,365   114,263   99,429  
    SBA loans 67,900   42,632   47,397   46,264   42,560  
    Leases receivable 95,371   71,487   83,813   83,642   70,923  
    Residential/consumer loans 111,766   61,023   85,966   41,497   66,581  
                subtotal 642,230   506,869   625,084   500,046   465,629  
               
               
    Payoffs (230,536)  (181,026)  (152,134)  (291,686)  (264,822) 
    Amortization (94,543)  (96,852)  (90,358)  (63,435)  (90,348) 
    Loan sales (41,937)  (29,577)  (41,274)  (65,253)  (35,760) 
    Net line utilization 43,295   (12,620)  (48,203)  (39,941)  (70,287) 
    Charge-offs & OREO (606)  (835)  (439)  (958)  (1,471) 
               
    Loans receivable-beginning balance 5,337,500   5,151,541   4,858,865   4,820,092   4,817,151  
    Loans receivable-ending balance$5,655,403  $5,337,500  $5,151,541  $4,858,865  $4,820,092  
               

    Deposits were $5.98 billion at the end of the second quarter of 2022, up $196.2 million, or 3.4%, from $5.78 billion at the end of the preceding quarter. The change was primarily driven by a $104.0 million increase in noninterest-bearing demand deposits, a $21.2 million increase in money market and savings deposits and a $74.3 million increase in time deposits. Noninterest-bearing demand deposits represented 46.5% of total deposits at June 30, 2022 and the loan-to-deposit ratio was 94.6%.

                   
     As of(in thousands) Percentage Change 
     Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Q2-22 Q2-22 
      2022   2022   2021   2021   2021  vs. Q1-22 vs. Q2-21 
    Deposit Portfolio              
    Demand: noninterest-bearing$2,782,737  $2,678,726  $2,574,517  $2,548,591  $2,354,671   3.9%  18.2% 
    Demand: interest-bearing 123,614   126,907   125,183   118,334   113,892   -2.6%  8.5% 
    Money market and savings 2,102,161   2,080,969   2,099,381   2,033,000   2,045,143   1.0%  2.8% 
    Time deposits 970,878   896,568   987,188   1,029,611   1,116,124   8.3%  -13.0% 
    Total deposits$5,979,390  $5,783,170  $5,786,269  $5,729,536  $5,629,830   3.4%  6.2% 
                   
                   
     As of   
     Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,     
      2022   2022   2021   2021   2021      
    Composition of Deposit Portfolio              
    Demand: noninterest-bearing 46.5%  46.3%  44.4%  44.4%  41.9%     
    Demand: interest-bearing 2.1%  2.2%  2.2%  2.1%  2.0%     
    Money market and savings 35.2%  36.0%  36.3%  35.5%  36.3%     
    Time deposits 16.2%  15.5%  17.1%  18.0%  19.8%     
    Total deposits 100.0%  100.0%  100.0%  100.0%  100.0%     
                   
                   

    Stockholders’ equity at June 30, 2022 was $618.3 million, compared with $621.5 million at March 31, 2022. The sequential decline was primarily due to the $21.7 million unrealized after-tax loss because of changes in the value of the securities portfolio resulting from increases in interest rates during the quarter which outpaced the $18.3 million contribution of second quarter net income less dividends. Tangible common stockholders’ equity was $607.0 million, or 8.74% of tangible assets, at June 30, 2022, compared with $610.1 million, or 9.07% of tangible assets at the end of the first quarter. Tangible book value per share decreased to $19.91 at June 30, 2022 from $20.02 at the end of the prior quarter.

    Hanmi and the Bank exceeded the minimum regulatory capital requirements and the Bank continues to exceed the minimum for the “well capitalized” category. At June 30, 2022, Hanmi’s preliminary Common equity Tier 1 capital ratio was 11.07% and its Total risk-based capital ratio was 14.32% compared with 11.34% and 14.73%, respectively, at the end of the first quarter of 2022.

     As of Amount Change 
     Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Q2-22 Q2-22 
      2022   2022   2021   2021   2021  vs. Q1-22 vs. Q2-21 
    Regulatory Capital ratios(1)              
    Hanmi Financial              
    Total risk-based capital 14.32%  14.73%  16.57%  17.18%  15.53%  -0.41   -1.21  
    Tier 1 risk-based capital 11.42%  11.71%  11.93%  12.18%  12.30%  -0.29   -0.88  
    Common equity tier 1 capital 11.07%  11.34%  11.55%  11.78%  11.88%  -0.27   -0.81  
    Tier 1 leverage capital ratio 9.94%  9.70%  9.63%  9.50%  9.57%  0.24   0.37  
    Hanmi Bank              
    Total risk-based capital 13.70%  14.19%  14.70%  15.17%  15.25%  -0.49   -1.55  
    Tier 1 risk-based capital 12.64%  13.09%  13.59%  13.91%  13.99%  -0.45   -1.35  
    Common equity tier 1 capital 12.64%  13.09%  13.59%  13.91%  13.99%  -0.45   -1.35  
    Tier 1 leverage capital ratio 11.00%  10.84%  10.96%  10.86%  10.89%  0.16   0.11  
                   
    (1)Preliminary ratios for June 30, 2022              
                   

    Asset Quality
    Loans and leases 30 to 89 days past due and still accruing were 0.07% of loans and leases at the end of the second quarter of 2022, compared with 0.10% at the end of the prior quarter.

    Special mention loans were $80.5 million at the end of the second quarter, down from $141.0 million at March 31, 2022. The quarter-over-quarter change included increases from downgrades of pass loans of $1.9 million and upgrades from classified loans of $0.7 million. Reductions included upgrades to pass of $57.7 million, payoffs and paydowns of $5.3 million and $0.1 million of downgrades to classified.   

    Classified loans were $53.0 million at June 30, 2022, down from $57.4 million at the end of the first quarter.

    Nonperforming loans were $11.0 million at June 30, 2022, or 0.20% of loans, down from $11.5 million at the end of the first quarter, or 0.21% of the portfolio.

    Nonperforming assets were $11.7 million at the end of the second quarter of 2022, or 0.17% of total assets, down from $12.1 million, or 0.18% of assets, at the end of the prior quarter.

    Gross charge-offs for the second quarter of 2022 were $0.6 million, compared with $0.8 million for the preceding quarter. Recoveries of previously charged-off loans for the second quarter of 2022 were $0.5 million, compared with $0.9 million for the preceding quarter. As a result, there were net charge-offs of $0.1 million for the second quarter of 2022, compared with net recoveries of $0.1 million for the prior quarter. For the second quarter of 2022, net charge-offs represented 0.01% of average loans on an annualized basis, compared with net recoveries of 0.01% of average loans for the first quarter on an annualized basis.

    The allowance for credit losses was $73.1 million at June 30, 2022, up $1.6 million from $71.5 million at March 31, 2022. The ratio of the allowance for credit losses to loans however declined to 1.29% at the end of the second quarter on essentially higher loan balances. Specific allowances for loans declined $0.2 million while quantitative and qualitative allowances increased $1.8 million principally on higher loan balances. Qualitative loss factors remained essentially unchanged; however, they now begin to reflect the uncertainties of future economic conditions in a rising interest rate environment.

                   
     As of or for the Three Months Ended(in thousands) Amount Change 
     Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Q2-22 Q2-22 
      2022   2022   2021   2021   2021  vs. Q1-22 vs. Q2-21 
    Asset Quality Data and Ratios              
                   
    Delinquent loans:              
    Loans, 30 to 89 days past due and still accruing$4,174  $5,493  $5,881  $6,017  $4,332  $(1,319) $(158) 
    Delinquent loans to total loans 0.07%  0.10%  0.11%  0.12%  0.09%  -0.03   -0.02  
                   
    Criticized loans:              
    Special mention$80,453  $140,958  $95,295  $130,564  $121,826  $(60,505) $(41,373) 
    Classified 53,007   57,402   60,632   82,436   110,120   (4,395)  (57,113) 
    Total criticized loans$133,460  $198,360  $155,927  $213,000  $231,946  $(64,900) $(98,486) 
                   
    Nonperforming assets:              
    Nonaccrual loans$11,044  $11,470  $13,360  $21,223  $39,573  $(426) $(28,529) 
    Loans 90 days or more past due and still accruing -   -   -   13   12,446   -   (12,446) 
    Nonperforming loans 11,044   11,470   13,360   21,236   52,019   (426)  (40,975) 
    Other real estate owned, net 675   675   675   675   712   -   (37) 
    Nonperforming assets$11,719  $12,145  $14,035  $21,911  $52,731  $(426) $(41,012) 
                   
    Nonperforming loans to total loans 0.20%  0.21%  0.26%  0.44%  1.08%     
    Nonperforming assets to assets 0.17%  0.18%  0.20%  0.32%  0.80%     
                   
    Allowance for credit losses:              
    Balance at beginning of period$71,512  $72,557  $76,613  $83,372  $88,392      
    Credit loss expense (recovery) on loans 1,640   (1,147)  (13,375)  (7,623)  (4,112)     
    Net loan (charge-offs) recoveries (85)  102   9,319   864   (908)     
    Balance at end of period$73,067  $71,512   $72,557   $76,613   $83,372      
                   
    Net loan charge-offs (recoveries) to average loans(1) 0.01%  -0.01%  -0.76%  -0.07%  0.08%     
    Allowance for credit losses to loans 1.29%  1.34%  1.41%  1.58%  1.73%     
                   
    Allowance for credit losses related to off-balance sheet items:              
    Balance at beginning of period$2,358  $2,586  $4,851  $3,643  $2,342      
    Credit loss expense (recovery) on off-balance sheet items (45)  (228)  (2,265)  1,208   1,301      
    Balance at end of period$2,313  $2,358  $2,586  $4,851  $3,643      
                   
    Unused commitments to extend credit$613,804  $626,615  $626,474  $536,149  $552,773      
                   
    Allowance for Losses on Accrued Interest Receivable:              
    Balance at beginning of period -   -  $311  $680  $1,196      
    Interest reversal for loans placed on nonaccrual -   -   -   -   -      
    Credit loss expense (recovery) on interest accrued on CARES Act modifications -   -   (311)  (369)  (516)     
    Balance at end of period -   -  $-  $311  $680      
                   
    (1)Annualized              

    Corporate Developments
    On April 28, 2022, Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2022 second quarter of $0.22 per share. The dividend was paid on May 25, 2022, to stockholders of record as of the close of business on May 9, 2022.

    Earnings Conference Call        
    Hanmi Bank will host its second quarter 2022 earnings conference call today, July 26, 2022 at 2:00 p.m. PST (5:00 p.m. EST) to discuss these results. This call will also be webcast. To access the event the call, please dial 1-877-407-9039 before 2:00 p.m. PST, using access code HANMI. To listen to the call online, either live or archived, please visit Hanmi’s Investor Relations 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 eight 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 our 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 and strategic plans, 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;
    • the effect of our rating under the Community Reinvestment Act and our ability to address any issues raised in our regulatory exams;
    • 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;
    • inflation and fluctuations in interest rates and a decline in the level of our interest rate spread;
    • the current or anticipated impact of military conflict, terrorism or other geopolitical events;
    • risks of natural disasters;
    • legal proceedings and litigation brought against us;
    • a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
    • the failure to maintain current technologies;
    • the inability to successfully implement future information technology enhancements;
    • difficult business and economic conditions that can adversely affect our industry and business, including competition, 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;
    • changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums;
    • the continuing impact of the COVID-19 pandemic on our business and results of operation;
    • 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;
    • strategic transactions we may enter into;
    • the adequacy of our allowance for credit losses;
    • our credit quality and the effect of credit quality on our credit losses expense 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.

    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, 2021, 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) Santarosa
    Senior Executive Vice President & Chief Financial Officer
    213-427-5636

    Larry Clark, CFA
    Investor Relations
    Financial Profiles, Inc.
    lclark@finprofiles.com
    310-622-8223


    Hanmi Financial Corporation and Subsidiaries
    Consolidated Balance Sheets (Unaudited)
    (Dollars in thousands)       
       
               
     June 30, March 31, Percentage June 30, Percentage 
      2022   2022  Change  2021  Change 
    Assets          
    Cash and due from banks$217,237  $312,491  -30.5% $697,789  -68.9% 
    Securities available for sale, at fair value 860,221   876,980  -1.9%  862,119  -0.2% 
    Loans held for sale, at the lower of cost or fair value 18,528   15,617  18.6%  36,030  -48.6% 
    Loans receivable, net of allowance for credit losses 5,582,335   5,265,988  6.0%  4,736,720  17.9% 
    Accrued interest receivable 14,044   12,289  14.3%  14,397  -2.5% 
    Premises and equipment, net 24,207   24,410  -0.8%  26,225  -7.7% 
    Customers' liability on acceptances 616   182  238.5%  1,907  -67.7% 
    Servicing assets 7,353   7,202  2.1%  6,199  18.6% 
    Goodwill and other intangible assets, net 11,310   11,353  -0.4%  11,504  -1.7% 
    Federal Home Loan Bank ("FHLB") stock, at cost 16,385   16,385  0.0%  16,385  0.0% 
    Bank-owned life insurance 55,395   55,149  0.4%  54,402  1.8% 
    Prepaid expenses and other assets 148,337   139,006  6.7%  115,179  28.8% 
    Total assets$ 6,955,968  $ 6,737,052  3.2% $ 6,578,856  5.7% 
               
    Liabilities and Stockholders' Equity          
    Liabilities:          
    Deposits:          
    Noninterest-bearing$2,782,737  $2,678,726  3.9% $2,354,671  18.2% 
    Interest-bearing 3,196,653   3,104,444  3.0%  3,275,159  -2.4% 
    Total deposits 5,979,390   5,783,170  3.4%  5,629,830  6.2% 
    Accrued interest payable 986   966  2.1%  1,855  -46.8% 
    Bank's liability on acceptances 616   182  238.5%  1,907  -67.7% 
    Borrowings 145,000   125,000  16.0%  150,000  -3.3% 
    Subordinated debentures 129,113   128,967  0.1%  119,243  8.3% 
    Accrued expenses and other liabilities 82,567   77,315  6.8%  73,044  13.0% 
    Total liabilities 6,337,672   6,115,600  3.6%  5,975,879  6.1% 
               
    Stockholders' equity:          
    Common stock 33   33  0.0%  33  0.0% 
    Additional paid-in capital 582,018   581,337  0.1%  579,595  0.4% 
    Accumulated other comprehensive income (66,568)  (44,819) -48.5%  (2,859) -2228.3% 
    Retained earnings 229,135   210,788  8.7%  146,651  56.2% 
    Less treasury stock (126,322)  (125,887) -0.3%  (120,443) -4.9% 
    Total stockholders' equity 618,296   621,452  -0.5%  602,977  2.5% 
    Total liabilities and stockholders' equity$ 6,955,968  $ 6,737,052  3.2% $ 6,578,856  5.7% 
               


    Hanmi Financial Corporation and Subsidiaries
    Consolidated Statements of Income (Unaudited)
    (Dollars in thousands, except share and per share data)       
       
               
     Three Months Ended 
     June 30, March 31, Percentage June 30, Percentage 
      2022  2022  Change  2021  Change 
    Interest and dividend income:          
    Interest and fees on loans receivable$59,855 $53,924  11.0% $52,785  13.4% 
    Interest on securities 2,930  2,516  16.5%  1,404  108.7% 
    Dividends on FHLB stock 242  248  -2.4%  242  0.0% 
    Interest on deposits in other banks 193  216  -10.6%  176  9.7% 
    Total interest and dividend income 63,220  56,904  11.1%  54,607  15.8% 
    Interest expense:          
    Interest on deposits 2,457  2,013  22.1%  3,003  -18.2% 
    Interest on borrowings 370  337  9.8%  447  -17.2% 
    Interest on subordinated debentures 1,349  3,598  -62.5%  1,585  -14.9% 
    Total interest expense 4,176  5,948  -29.8%  5,035  -17.1% 
    Net interest income before credit loss expense 59,044  50,956  15.9%  49,572  19.1% 
    Credit loss expense (recovery) 1,596  (1,375) 216.1%  (3,327) -148.0% 
    Net interest income after credit loss expense 57,448  52,331  9.8%  52,899  8.6% 
    Noninterest income:          
    Service charges on deposit accounts 2,875  2,875  0.0%  2,344  22.7% 
    Trade finance and other service charges and fees 1,416  1,142  24.0%  1,259  12.5% 
    Gain on sale of Small Business Administration ("SBA") loans 2,774  2,521  10.0%  3,508  -20.9% 
    Other operating income 2,245  1,982  13.3%  1,775  26.5% 
    Total noninterest income 9,310  8,520  9.3%  8,886  4.8% 
    Noninterest expense:          
    Salaries and employee benefits 18,779  17,717  6.0%   18,302  2.6% 
    Occupancy and equipment 4,597  4,646  -1.1%  4,602  -0.1% 
    Data processing 3,114  3,236  -3.8%  2,915  6.8% 
    Professional fees 1,231  1,430  -13.9%  1,413  -12.9% 
    Supplies and communications 581  665  -12.6%  733  -20.7% 
    Advertising and promotion 660  817  -19.2%  374  76.5% 
    Other operating expenses 2,513  3,181  -21.0%  2,444  2.8% 
    Total noninterest expense 31,475  31,692  -0.7%  30,783  2.2% 
    Income before tax 35,283  29,159  21.0%  31,002  13.8% 
    Income tax expense 10,233  8,464  20.9%   8,880  15.2% 
    Net income$ 25,050 $ 20,695  21.0%  $ 22,122  13.2% 
                
    Basic earnings per share:$0.82 $0.68    $0.72    
    Diluted earnings per share:$0.82 $0.68    $0.72    
               
    Weighted-average shares outstanding:          
    Basic 30,296,897  30,254,212     30,442,993    
    Diluted 30,412,348  30,377,580     30,520,456    
    Common shares outstanding 30,482,990  30,468,458     30,697,652    
               
    Hanmi Financial Corporation and Subsidiaries
    Consolidated Statements of Income (Unaudited)       
        
    (Dollars in thousands, except share and per share data)     
     Six Months Ended     
     June 30, June 30, Percentage     
      2022  2021  Change     
    Interest and dividend income:          
    Interest and fees on loans receivable$113,779 $103,400  10.0%     
    Interest on securities 5,447  2,544  114.1%     
    Dividends on FHLB stock 490  448  9.4%     
    Interest on deposits in other banks 408  272  50.0%     
    Total interest and dividend income 120,124  106,664  12.6%     
    Interest expense:          
    Interest on deposits 4,470  6,953  -35.7%     
    Interest on borrowings 707  933  -24.2%     
    Interest on subordinated debentures 4,947  3,204  54.4%     
    Total interest expense 10,124  11,090  -8.7%     
    Net interest income before credit loss expense 110,000  95,574  15.1%     
    Credit loss expense (recovery) 220  (1,217) -118.1%     
    Net interest income after credit loss expense 109,780  96,791  13.4%     
    Noninterest income:          
    Service charges on deposit accounts 5,750  4,599  25.0%     
    Trade finance and other service charges and fees 2,558  2,280  12.2%     
    Gain on sale of Small Business Administration ("SBA") loans 5,295  7,633  -30.6%     
    Other operating income 4,226  4,081  3.6%     
    Total noninterest income 17,829  18,593  -4.1%     
    Noninterest expense:          
    Salaries and employee benefits 36,496  35,122  3.9%     
    Occupancy and equipment 9,243  9,198  0.5%     
    Data processing 6,351  5,841  8.7%     
    Professional fees 2,661  2,860  -7.0%     
    Supplies and communications 1,245  1,489  -16.4%     
    Advertising and promotion 1,477  732  101.8%     
    Other operating expenses 5,694  5,074  12.2%     
    Total noninterest expense 63,167  60,316  4.7%     
    Income before tax 64,442  55,068  17.0%     
    Income tax expense 18,697  16,386  14.1%     
    Net income$ 45,745 $ 38,682  18.3%     
                
    Basic earnings per share:$1.50 $1.26        
    Diluted earnings per share:$1.50 $1.26        
               
    Weighted-average shares outstanding:          
    Basic 30,271,761  30,452,320        
    Diluted 30,391,273  30,526,120        
    Common shares outstanding 30,482,990  30,697,652        
               



    Hanmi Financial Corporation and Subsidiaries
    Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
    (Dollars in thousands)           
        
                    
     Three Months Ended 
     June 30, 2022 March 31, 2022 June 30, 2021 
       InterestAverage   InterestAverage   InterestAverage 
     Average Income /Yield / Average Income /Yield / Average Income /Yield / 
     Balance ExpenseRate Balance ExpenseRate Balance ExpenseRate 
    Assets               
    Interest-earning assets:               
    Loans receivable(1)$5,572,504  $59,8554.31% $5,231,672  $53,9244.18% $4,753,297  $52,7874.45% 
    Securities(2) 945,291   2,9301.27%  930,505   2,5861.11%  812,805   1,4040.69% 
    FHLB stock 16,385   2425.93%  16,385   2486.14%  16,385   2425.93% 
    Interest-bearing deposits in other banks 136,473   1930.57%  494,887   2160.18%  659,934   1760.11% 
    Total interest-earning assets 6,670,653   63,2203.80%  6,673,449   56,9743.46%  6,242,421   54,6093.51% 
                    
    Noninterest-earning assets:               
    Cash and due from banks 67,859      62,968      61,560     
    Allowance for credit losses (73,896)     (73,177)     (88,049)    
    Other assets 255,095      229,952      220,779     
                    
    Total assets$6,919,711     $6,893,192     $6,436,711     
                    
    Liabilities and Stockholders' Equity               
    Interest-bearing liabilities:               
    Deposits:               
    Demand: interest-bearing$122,771  $180.06% $124,892  $170.06% $112,252  $230.08% 
    Money market and savings 2,139,488   1,5700.29%  2,106,008   1,1890.23%  2,032,102   1,2980.26% 
    Time deposits 894,345   8690.39%  937,044   8070.35%  1,136,903   1,6820.59% 
    Total interest-bearing deposits 3,156,604   2,4570.31%  3,167,944   2,0130.26%  3,281,257   3,0030.37% 
    Borrowings 140,245   3841.10%  130,556   3371.05%  150,091   4471.19% 
    Subordinated debentures 129,029   1,3354.14%  213,171   3,5986.75%  119,170   1,5855.32% 
    Total interest-bearing liabilities 3,425,878   4,1760.49%  3,511,671   5,9480.69%  3,550,518   5,0350.57% 
                    
    Noninterest-bearing liabilities and equity:               
    Demand deposits: noninterest-bearing 2,716,297      2,634,398      2,223,172     
    Other liabilities 104,084      88,367      67,771     
    Stockholders' equity 673,452      658,756      595,250     
                    
    Total liabilities and stockholders' equity$6,919,711     $6,893,192     $6,436,711     
                    
    Net interest income (tax equivalent basis)  $59,044    $51,026    $49,574  
                    
    Cost of deposits   0.17%    0.14%    0.22% 
    Net interest spread (taxable equivalent basis)   3.31%    2.77%    2.94% 
    Net interest margin (taxable equivalent basis)   3.55%    3.10%    3.19% 
                    
                    
                    
    (1)Includes average loans held for sale  
    (2)Income calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.      
                    
                    
    Hanmi Financial Corporation and Subsidiaries
    Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
    (Dollars in thousands)              
     
     Six Months Ended      
     June 30, 2022 June 30, 2021      
       InterestAverage   InterestAverage      
     Average Income /Yield / Average Income /Yield /      
     Balance ExpenseRate Balance ExpenseRate      
    Assets               
    Interest-earning assets:               
    Loans receivable (1)$5,403,029  $113,7794.25% $4,798,311  $103,3994.35%      
    Securities (2) 937,939   5,4471.19%  793,521   2,5440.64%      
    FHLB stock 16,385   4906.03%  16,385   4485.52%      
    Interest-bearing deposits in other banks 314,690   4080.26%  528,498   2720.10%      
    Total interest-earning assets 6,672,043   120,1243.63%  6,136,715   106,6633.51%      
                    
    Noninterest-earning assets:               
    Cash and due from banks 65,427      59,127          
    Allowance for credit losses (73,538)     (88,860)         
    Other assets 242,593      227,436          
                    
    Total assets$ 6,906,525     $ 6,334,418          
                    
    Liabilities and Stockholders' Equity               
    Interest-bearing liabilities:               
    Deposits:               
    Demand: interest-bearing$123,826  $350.06% $107,642  $370.07%      
    Money market and savings 2,122,840   2,7580.26%  1,999,737   2,7760.28%      
    Time deposits 915,577   1,6770.37%  1,187,427   4,1480.70%      
    Total interest-bearing deposits 3,162,243   4,4700.29%  3,294,806   6,9610.43%      
    Borrowings 135,427   7261.08%  150,046   9231.24%      
    Subordinated debentures 170,868   4,9285.77%  119,105   3,2045.38%      
    Total interest-bearing liabilities 3,468,538   10,1240.59%  3,563,957   11,0880.63%      
                    
    Noninterest-bearing liabilities and equity:               
    Demand deposits: noninterest-bearing 2,675,574      2,107,828          
    Other liabilities 96,269      74,391          
    Stockholders' equity 666,144      588,242          
                    
    Total liabilities and stockholders' equity$ 6,906,525     $ 6,334,418          
                    
    Net interest income (tax equivalent basis)  $ 110,000    $ 95,575       
                    
    Cost of deposits   0.15%    0.26%      
    Net interest spread (taxable equivalent basis)   3.04%    2.88%      
    Net interest margin (taxable equivalent basis)   3.32%    3.14%      
                    
                    
    (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 substitute 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)       
      
              
              
     June 30, March 31, December 31, September 30, June 30,
    Hanmi Financial Corporation 2022   2022   2021   2021   2021 
    Assets$6,955,968  $6,737,052  $6,858,587  $6,776,533  $6,578,856 
    Less goodwill and other intangible assets (11,310)  (11,353)  (11,395)  (11,450)  (11,504)
    Tangible assets$6,944,658  $6,725,699  $6,847,192  $6,765,083  $6,567,352 
              
    Stockholders' equity (1)$618,296  $621,452  $643,417  $619,055  $602,977 
    Less goodwill and other intangible assets (11,310)  (11,353)  (11,395)  (11,450)  (11,504)
    Tangible stockholders' equity (1)$606,986  $610,099  $632,022  $607,605  $591,473 
              
    Stockholders' equity to assets 8.89%  9.22%  9.38%  9.14%  9.17%
    Tangible common equity to tangible assets (1) 8.74%  9.07%  9.23%  8.98%  9.01%
              
    Common shares outstanding 30,482,990   30,468,458   30,407,261   30,441,601   30,697,652 
    Tangible common equity per common share$19.91  $20.02  $20.79  $19.96  $19.27 
              
              
    (1)       There were no preferred shares outstanding at the periods indicated.        
              

    Primary Logo

分享