Hanmi News

  • Dec 08, 2008 Hanmi Bank participates in the FDIC’s Transaction Account Guarantee

    Hanmi Bank participates in the FDIC’s Transaction Account Guarantee


    Hanmi Bank is participating in the FDIC’s Transaction Account Guarantee Program. Under that program, through December 31, 2009, all non-interest-bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. Coverage under the Transaction Account Guarantee Program is in addition to and separate from the coverage available under the FDIC’s general deposit insurance rules.
  • Sep 25, 2008 Hanmi CEO Speaks at Economic Seminar

    Hanmi CEO Speaks at Economic Seminar


    Hanmi Bank, in collaboration with Korea Daily and JBC Radio, held a free Economic Seminar to inform  the community on events and trends relating to current economic events. As one of the guest speakers,Hanmi Bank President and CEO, Jay S. Yoo presented “The Impact of the Financial Crisis in the Korean American Banking Industry and its Outlook” to approximately 200 guests. In addition, subjects relating to real estate as well as a general financial projection were presented.
  • Sep 16, 2008 Northridge Branch Holds Opening Ceremony

    Northridge Branch Holds Opening Ceremony


    Northridge Branch held its official grand opening ceremony on September 16, 2008 from 10am to 11am. Northridge Branch guests, local government representatives, the police department and Board Members attended the ceremony.
  • Jul 28, 2008 Northridge Branch Opens

    Northridge Branch Opens

    Hanmi Bank officially opened its 26th branch in the city of Northridge.  Customers living in San Fernando area can now enjoy the flexibility of choosing either Van Nuys or Northridge branch to fulfill their banking needs.

    The Northridge Branch is located on the southeat corner of Devonshire Street and Reseda Blvd. This branch will be managed by Sang Ui Hong, who was previously a loan officer at the Wilshire-Hobartbranch. 

    Northridge Branch
    10180 Reseda Blvd., Northridge, CA 91324
    Tel: 818-709-3300
    Fax: 818-709-3388
  • Jun 13, 2008 Mr. Jay S. Yoo Appointed as President and CEO

    Mr. Jay S. Yoo Appointed as President and CEO

    LOS ANGELES--(BUSINESS WIRE)--June 13, 2008--Hanmi Financial Corporation (Nasdaq:HAFC), the holding company of Hanmi Bank, announced that Jay S. Yoo has been appointed President and Chief Executive Officer of Hanmi Financial Corporation and Hanmi Bank. Mr. Yoo, whose appointment is effective June 23, 2008, replaces Sung Won Sohn, who retired in December 2007. Mr. Yoo will also serve on the Boards of Directors of Hanmi Financial Corporation and Hanmi Bank.

    Jay S. Yoo, 61, began his banking career in South Korea in 1970 and was most recently -- from 2001 to 2007 -- Chairman, President and CEO of New York-based Woori America Bank, a subsidiary of Woori Bank, a South Korean bank with assets of approximately $225 billion. He holds a B.A. in Business Administration from Sogang University in Seoul, South Korea.

    "We are delighted that Mr. Yoo has accepted our invitation to lead Hanmi's senior management team," said Won R. Yoon, M.D., Hanmi's Chairman. "He brings to Hanmi a breadth of experience in commercial banking that will be invaluable as we address a variety of challenges facing Hanmi, not the least of which are the need to improve credit quality and achieve a measure of stability in the Bank's financial performance.

    "During his 37-year career in banking, almost half of which has been spent in the United States, Mr. Yoo has demonstrated an impressive range of administrative and operational skills," added Dr. Yoon. "Equally important, he has acquired expertise in a number of key areas -- notably underwriting and credit management, interstate banking, new product development, risk management and internal control, and international trade finance -- that will be of great benefit to Hanmi and its shareholders in the years ahead."

  • May 27, 2008 1% Cash Back on Regular Personal Checking

    1% Cash Back on Regular Personal Checking

    All Regular Personal Checking customers will start receiving 1% Cash Back on their net debit card transactions. This feature is automatically added to your account and there is no need to sign up. It's easy, simple, and automatic!
  • Feb 19, 2008 Beverly Hills Branch Opens

    Beverly Hills Branch Opens

    All Regular Personal Checking customers will start receiving 1% Cash Back on their net debit card transactions. This feature is automatically added to your account and there is no need to sign up. It's easy, simple, and automatic!

    Hanmi Bank officially opened its 25th branch in the city of Beverly Hills.  This branch represents the first Korean-American bank to open a branch in the city of Beverly Hills and the entire West Los Angeles area.

    The Beverly Hills Branch is located on the southwest corner of Wilshire Blvd and Rexford Drive. This eighth addition to the South Bay District will be managed by Jin Young Kim, who leaves the Cerritos Branch after seven years as a loan officer.

    Beverly Hills Branch
    9300 Wilshire Blvd.
    Beverly Hills, CA 90212
    Tel: 310-724-7800
    Fax: 310-724-7850

  • Feb 13, 2008 Open Accounts Online

    Open Accounts Online

    Starting today, customers are now able to open a checking, savings, and CD account online.  This new service will allow customers who reside outside of our branch network to open an account.  The process only takes a few minutes and can be done during anytime of the day.

     

    Customers may click here to begin the application process.

  • Nov 06, 2007 Hanmi Financial Corporation Reports Net Income of $11.1 Million for Third Quarter of 2007

    Hanmi Financial Corporation Reports Net Income of $11.1 Million for Third Quarter of 2007

    LOS ANGELES--(BUSINESS WIRE)--Nov. 6, 2007--Hanmi Financial Corporation (NASDAQ:HAFC), the holding company for Hanmi Bank, reported that for the three months ended September 30, 2007, it earned net income of $11.1 million, a decrease of 27.6 percent compared to net income of $15.3 million for the second quarter of 2007. Earnings per share were $0.23 (diluted), a decrease of 25.8 percent compared to $0.31 per share (diluted) for the second quarter of 2007.

     

    "Our strong loan growth and the opening of our 24th branch during the quarter were overshadowed by higher loan loss provisions and continued margin compression. During the quarter, our loan portfolio increased $164.0 million and we opened a new branch in Rancho Cucamonga, California," said Sung Won Sohn, Ph.D., President and Chief Executive Officer. "However, our net interest margin decreased from 4.51 percent in the second quarter to 4.26 percent in the third quarter. We expect our margin to continue to experience competitive pressures in the near term and the recent change in the Federal Reserve monetary policy will hurt margins until it is fully reflected in the repricing of our time deposits."

     

    "The third quarter increase of $5.4 million in the provision for credit losses stems in part from a group of six related business acquisition loans amounting to $3.6 million, some of which have become the subject of litigation that we initiated."

     

    "In this uncertain economic and financial environment, the asset quality is a serious concern for all lenders. Fortunately, Hanmi's exposure to the residential market is minimal. The commercial real estate market, about two-thirds of Hanmi's portfolio, continues to remain healthy. However, in recent quarters, we have experienced higher delinquencies and charge-offs resulting from a more challenging environment for our customers."

     

    THIRD-QUARTER HIGHLIGHTS

     

    -- Net interest income before provision for credit losses was $37.9 million for the third quarter of 2007, compared to $38.6 million for the second quarter of 2007 and $39.7 million for the third quarter of 2006, reflecting a 2.8 percent and 7.3 percent, respectively, sequential increase in average interest-earning assets. Net interest margin for the third quarter of 2007 was 4.26 percent, compared to 4.51 percent for the second quarter of 2007 and 4.79 percent for the third quarter of 2006.

     

    -- The loan portfolio increased by $354.9 million, or 12.4 percent, to $3.22 billion at September 30, 2007, compared to $2.86 billion at December 31, 2006, reflecting continued growth in commercial and industrial loans.

     

    -- Non-performing loans increased by $22.1 million to $44.7 million, or 1.39 percent of the portfolio, at September 30, 2007, compared to $22.6 million, or 0.74 percent of the portfolio, at June 30, 2007. Loans over 30 days delinquent increased from $32.0 million at June 30, 2007 to $55.0 million at September 30, 2007.

     

    -- The provision for credit losses was $8.5 million for the third quarter of 2007, compared to $3.0 million for the second quarter of 2007 and $1.7 million for the third quarter of 2006.

     

    -- The allowance for loan losses was 1.07 percent, 1.05 percent and 0.99 percent of the gross loan portfolio at September 30, 2007, June 30, 2007 and September 30, 2006, respectively.

     

    -- During the third quarter, the Company repurchased 1,004,100 of its shares at a cost of $15.0 million, or $14.90 per share.

     

    NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES

     

    Net interest income before provision for credit losses was $37.9 million for the third quarter of 2007, a decrease of $735,000, or 1.9 percent, compared to $38.6 million for the second quarter of 2007, and a decrease of $1.9 million, or 4.7 percent, compared to $39.7 million for the third quarter of 2006.

     

    The yield on the loan portfolio was 8.44 percent for the third quarter of 2007, a decrease of 24 basis points compared to 8.68 percent for the second quarter of 2007, and a decrease of 45 basis points compared to 8.89 percent for the third quarter of 2006. The yield on investment securities was 4.52 percent for the third quarter of 2007, an increase of 12 basis points compared to 4.40 percent for the second quarter of 2007, and an increase of four basis points compared to 4.48 percent for the third quarter of 2006.

     

    The yield on average interest-earning assets was 8.01 percent for the third quarter of 2007, a decrease of 16 basis points compared to 8.17 percent for the second quarter of 2007, and a decrease of 28 basis points compared to 8.29 percent for the third quarter of 2006. The cost of interest-bearing liabilities was 4.93 percent for the third quarter of 2007, an increase of one basis point compared to 4.92 percent for the second quarter of 2007, and an increase of 20 basis points compared to 4.73 percent for the third quarter of 2006, as the competitive deposit rate environment continued to stabilize.

     

    PROVISION FOR CREDIT LOSSES

     

    The provision for credit losses was $8.5 million for the third quarter of 2007, compared to $3.0 million for the second quarter of 2007 and $1.7 million for the third quarter of 2006. In the third quarter of 2007, net charge-offs were $6.1 million, compared to $2.5 million for the second quarter of 2007 and $656,000 for the third quarter of 2006.

     

    The sequential increase in the provision for credit losses is attributable to an increased migration of loans into more adverse risk rating categories, including a group of six related business acquisition loans amounting to $3.6 million, some of which have become the subject of litigation; an increase of $164.0 million, or 5.4 percent, in the loan portfolio; and a higher rate of increase in non-performing assets, which increased $21.3 million in the third quarter to a balance of $45.0 million at September 30, 2007, compared to an increase of $4.2 million to a balance of $23.7 million at June 30, 2007.

     

    Delinquent loans increased to $55.0 million, or 1.71 percent of gross loans, at September 30, 2007 from $32.0 million, or 1.05 percent of gross loans, at June 30, 2007. While the level of non-performing assets and delinquent loans are indicators of the credit quality of the portfolio, the provision for credit losses is determined primarily on the basis of loan classifications and the historical loss experience with similarly situated credits.

     

    NON-INTEREST INCOME

     

    Non-interest income decreased by $1.2 million, or 10.9 percent, to $9.5 million for the third quarter of 2007, compared to $10.7 million for the second quarter of 2007, and increased by $354,000, or 3.9 percent, compared to $9.2 million for the third quarter of 2006. The decrease in non-interest income from the second quarter of 2007 to the third quarter of 2007 is primarily attributable to a $1.2 million decrease in the amount of gain on sales of loans. The increase in non-interest income from the third quarter of 2006 to the third quarter of 2007 is primarily attributable to an increase of $881,000 in insurance commissions, reflecting the acquisitions of two insurance agencies in the first quarter of 2007, and a $226,000 gain on sale of OREO, partially offset by a $877,000 decrease in the amount of gain on sales of loans.

     

    NON-INTEREST EXPENSES

     

    Non-interest expenses decreased by $241,000, or 1.1 percent, to $21.2 million for the third quarter of 2007, compared to $21.5 million for the second quarter of 2007, and increased by $1.4 million, or 7.0 percent, compared to $19.9 million for the third quarter of 2006. Salaries and employee benefits increased by $636,000, or 5.9 percent, sequentially from $10.8 million for the second quarter of 2007 to $11.4 million for the third quarter of 2007 because of the opening of the Rancho Cucamonga branch in August 2007 and increased accruals for incentive compensation.

     

    The efficiency ratio (non-interest expenses divided by the sum of net interest income before provision for credit losses and non-interest income) for the third quarter of 2007 was 44.85 percent, compared to 43.61 percent for the second quarter of 2007 and 40.61 percent for the third quarter of 2006, in part reflecting the acquisitions of two insurance agencies in the first quarter of 2007 and the opening of the Rancho Cucamonga and Fullerton branches during 2007.

     

    PROVISION FOR INCOME TAXES

     

    The provision for income taxes reflects a 37.2 percent effective tax rate for the third quarter of 2007, compared to a 38.1 percent effective tax rate for the second quarter of 2007 and a 35.7 percent effective tax rate for the third quarter of 2006. Changes in the effective tax rate reflect a relatively stable level of Enterprise Zone and low-income housing tax credits in periods in which there were changes in taxable income.

     

    FINANCIAL POSITION

     

    Total assets were $4.01 billion at September 30, 2007, an increase of $286.4 million, or 7.7 percent, compared to $3.73 billion at December 31, 2006, and an increase of $272.5 million, or 7.3 percent, from the September 30, 2006 balance of $3.74 billion.

     

    At September 30, 2007, net loans totaled $3.19 billion, an increase of $348.0 million, or 12.3 percent, from $2.84 billion at December 31, 2006. Real estate loans increased by $57.7 million, or 5.5 percent, to $1.10 billion at September 30, 2007, compared to $1.04 billion at December 31, 2006, and commercial and industrial loans grew by $306.6 million, or 17.8 percent, to $2.03 billion at September 30, 2007, compared to $1.73 billion at December 31, 2006.

     

    The growth in total assets was funded primarily by an increase in FHLB advances and other borrowings of $192.3 million, up 113.8 percent to $361.3 million at September 30, 2007, compared to $169.0 million at December 31, 2006. In addition, deposits increased $102.8 million, up 3.5 percent to $3.05 billion at September 30, 2007 from $2.94 billion at December 31, 2006. The increase in deposits included increases in time deposits of $100,000 or more of $91.4 million, up 6.6 percent to $1.47 billion, in money market checking accounts of $38.0 million, up 8.7 percent to $476.3 million, and in other time deposits of $16.4 million, up 5.5 percent to $311.9 million, partially offset by decreases in noninterest-bearing demand deposits of $37.8 million, down 5.2 percent to $690.5 million, and in savings accounts of $5.1 million, down 5.1 percent to $94.2 million.

     

    ASSET QUALITY

     

    Total non-performing assets, including loans 90 days or more past due and still accruing, non-accrual loans and other real estate owned ("OREO") assets, increased by $30.8 million to $45.0 million at September 30, 2007 from $14.2 million at December 31, 2006, and increased by $31.5 million from $13.5 million at September 30, 2006. Non-performing loans at September 30, 2007 included a $17 million construction loan for low-income housing that is fully collateralized and participated in by the local government. The downgrade of this loan relates to project cost overruns and construction delays. Despite these set backs we anticipate the project being completed and our loan being repaid without a loss to the Bank. Additionally, to date, we have never lost any money on low-income housing projects. Non-performing loans as a percentage of gross loans increased to 1.39 percent at September 30, 2007 from 0.50 percent at December 31, 2006 and 0.47 percent at September 30, 2006.

     

    At September 30, 2007, delinquent loans were $55.0 million, or 1.71 percent of gross loans, compared to $19.6 million, or 0.68 percent of gross loans, at December 31, 2006, and $24.1 million, or 0.84 percent of gross loans, at September 30, 2006.

     

    At September 30, 2007, the Company maintained an allowance for loan losses of $34.5 million and a liability for off-balance sheet exposure, primarily unfunded loan commitments, of $1.8 million. The allowance for loan losses represented 1.07 percent of gross loans at September 30, 2007, compared to 0.96 percent and 0.99 percent at December 31, 2006 and September 30, 2006, respectively. As of September 30, 2007, the allowance for loan losses was 77.19 percent of non-performing loans, compared to 193.9 percent at December 31, 2006 and 209.8 percent at September 30, 2006.

     

    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 24 full-service offices in Los Angeles, Orange, San Bernardino, San Francisco, Santa Clara and San Diego counties, and nine loan production offices in California, Colorado, Georgia, Illinois, Texas, Virginia and Washington. Hanmi Bank specializes in commercial, SBA, trade finance and consumer 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 shareholder value. Additional information is available at www.hanmifinancial.com.

     

    FORWARD-LOOKING STATEMENTS

     

    This 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. 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: general economic and business conditions in those areas in which we operate; demographic changes; competition for loans and deposits; fluctuations in interest rates; risks of natural disasters related to our real estate portfolio; risks associated with SBA loans; changes in governmental regulation; credit quality; the ability of borrowers to perform under the terms of their loans and other terms of credit agreements; our ability to successfully integrate acquisitions we may make; the availability of capital to fund the expansion of our business; and changes in securities markets. In addition, we set forth certain risks in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2006, 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.

  • Aug 16, 2007 Rancho Cucamonga Branch Opens

    Rancho Cucamonga Branch Opens

    Hanmi Bank officially opened its 24th branch in the city of Rancho Cucamonga.  The Rancho Cucamonga Branch is the first branch that Hanmi Bank has opened in the San Bernardino County area.

    Rancho Cucamonga Branch
    9759 Baseline Rd
    Rancho Cucamonga, CA 91730
    Tel: 909-919-7599
    Fax: 909-919-7597

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