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Press release from GlobeNewswire (a Nasdaq OMX company)

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

Thursday, January 24, 2013

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 Earnings05:30 EST Thursday, January 24, 2013LOS 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,  201220122011         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 Share  $ 11.97  $ 11.52  $ 9.02         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 Gross Loans 3.09% 3.38% 4.64% Allowance for Loan Losses to Total Non-Performing Loans 169.81% 147.92% 171.71%         Classified Assets  $ 101,172  $ 131,233  $ 282,559 Classified Assets to Bank Tier 1 Capital and ALLL 21.57% 28.60% 66.14%         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 Ratio 13.09% 12.77% 10.36%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,  201220122011        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 Ratio 13.09% 12.77% 10.36%        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 Ratio 15.29% 14.96% 12.48%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 30th 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 30th 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, 2012September 30, 2012December 31, 2011   % to Total % to Total % to Total  AmountNPLAmountNPLAmountNPLReal 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 Credit  1,521 4.1%  1,359 3.0%  1,431 2.7% 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 Loans $ 37,279 100.0% $ 44,692 100.0% $ 52,378 100.0% "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 30,PercentageDecember 31,Percentage  20122012Change2011ChangeASSETS           Cash and Due From Banks  $ 92,350  $ 72,053 28.2%  $ 80,582 14.6% Interest-Bearing Deposits in Other Banks  175,697  217,375 -19.2%  101,101 73.8% Federal Funds Sold  --   13,000 -100.0%  20,000 -100.0% Cash and Cash Equivalents  268,047  302,428 -11.4%  201,683 32.9% Restricted Cash  5,350  4,393 21.8%  1,818 194.3% Term Federal Funds Sold  --   55,000 -100.0%  115,000 -100.0% Securities Available for Sale, at Fair Value  451,060  410,210 10.0%  381,862 18.1% Securities Held to Maturity, at Amortized Cost  --   --  NM  59,742 -100.0% Loans Held for Sale, at the Lower of Cost or Fair Value  8,306  10,736 -22.6%  22,587 -63.2% Loans Receivable, Net of Allowance for Loan Losses   1,986,051  1,892,813 4.9%  1,849,020 7.4% Accrued Interest Receivable  7,581  7,467 1.5%  7,829 -3.2% Premises and Equipment, Net  15,150  15,412 -1.7%  16,603 -8.8% Other Real Estate Owned, Net  774  364 112.6%  180 330.0% Customers' Liability on Acceptances  1,336  2,157 -38.1%  1,715 -22.1% Servicing Assets  5,542  5,148 7.7%  3,720 49.0% Other Intangible Assets, Net  1,335  1,376 -3.0%  1,533 -12.9% Investment in Federal Home Loan Bank Stock, at Cost  17,800  19,621 -9.3%  22,854 -22.1% Investment in Federal Reserve Bank Stock, at Cost  12,222  10,261 19.1%  8,558 42.8% 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 Insurance  29,054  28,816 0.8%  28,289 2.7% 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 Payable  11,775  15,266 -22.9%  16,032 -26.6% Bank's Liability on Acceptances  1,336  2,157 -38.1%  1,715 -22.1% Federal Home Loan Bank Advances  2,935  3,029 -3.1%  3,303 -11.1% Junior Subordinated Debentures  82,406  82,406 0.0%  82,406 0.0% Accrued Expenses and Other Liabilities  9,741  11,627 -16.2%  10,850 -10.2%TOTAL LIABILITIES2,504,1562,477,8701.1% 2,459,216 1.8%             STOCKHOLDERS' EQUITY:           Common Stock  257  257 0.0%  257 0.0% Additional Paid-In Capital  550,140  549,814 0.1%  549,744 0.1% Unearned Compensation  (74)  (92) -19.6%  (166) -55.4% Accumulated Other Comprehensive Income  5,418  5,364 1.0%  3,524 53.7% 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' EQUITY 378,364  363,987 3.9% 285,608 32.5%TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,882,520  $ 2,841,857 1.4% $ 2,744,824 5.0%            HANMI FINANCIAL CORPORATION AND SUBSIDIARIES        CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)        (In Thousands, Except Per Share Data)                        Three Months Ended  December 31,September 30,PercentageDecember 31,Percentage  20122012Change2011Change INTEREST AND DIVIDEND INCOME:           Interest and Fees on Loans  $ 27,418  $ 26,781 2.4%  $ 28,162 -2.6% Taxable Interest on Investment Securities  2,138  1,992 7.3%  1,979 8.0% Tax-Exempt Interest on Investment Securities  95  98 -3.1%  100 -5.0% Interest on Term Federal Funds Sold  22  191 -88.5%  182 -87.9% Interest on Federal Funds Sold  7  20 -65.0%  5 40.0% Interest on Interest-Bearing Deposits in Other Banks  153  142 7.7%  72 112.5% Dividends on Federal Reserve Bank Stock  179  154 16.2%  121 47.9% Dividends on Federal Home Loan Bank Stock  127  24 429.2%  19 568.4% Total Interest and Dividend Income  30,139  29,402 2.5%  30,640 -1.6% INTEREST EXPENSE:           Interest on Deposits  3,366  3,639 -7.5%  5,301 -36.5% Interest on Federal Home Loan Bank Advances  39  40 -2.5%  44 -11.4% Interest on Junior Subordinated Debentures  303  804 -62.3%  767 -60.5% Interest on Other Borrowings  --   --  NM  94 -100.0% Total Interest Expense  3,708  4,483 -17.3%  6,206 -40.3% NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES  26,431  24,919 6.1%  24,434 8.2% Provision for Credit Losses  --   --  NM  4,000 -100.0% NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES  26,431  24,919 6.1%  20,434 29.3% NON-INTEREST INCOME:           Service Charges on Deposit Accounts  3,191  2,851 11.9%  3,182 0.3% Insurance Commissions  1,235  1,092 13.1%  1,097 12.6% Trade Finance & Other Service Charges and Fees  1,235  1,111 11.2%  1,191 3.7% Bank-Owned Life Insurance Income  238  235 1.3%  239 -0.4% Net Gain on Sales of SBA Loans  2,678  1,772 51.1%  2,931 -8.6% Net Loss on Sales of Other Loans  (1,247)  (515) 142.1%  (2,548) -51.1% Net Gain on Sales of Investment Securities  4  10 -60.0%  1 300.0% Other-than-temporary Impairment Loss on Investment Securities  --   (176) -100.0%  --  NM  Other Operating Income  136  140 -2.9%  255 -46.7% Total Non-Interest Income  7,470  6,520 14.6%  6,348 17.7% NON-INTEREST EXPENSE:           Salaries and Employee Benefits  9,224  9,148 0.8%  9,433 -2.2% Occupancy and Equipment  2,585  2,623 -1.4%  2,533 2.1% Deposit Insurance Premiums and Regulatory Assessments  1,249  283 341.3%  1,631 -23.4% Data Processing  1,179  1,211 -2.6%  1,356 -13.1% Other Real Estate Owned Expense  (33)  352 -109.4%  71 -146.5% Professional Fees  1,744  1,112 56.8%  1,114 56.6% Directors and Officers Liability Insurance  298  296 0.7%  736 -59.5% Supplies and Communications  567  669 -15.2%  537 5.6% Advertising and Promotion  1,243  1,023 21.5%  888 40.0% Loan-Related Expense  75  164 -54.3%  196 -61.7% Amortization of Other Intangible Assets  41  41 0.0%  131 -68.7% Other Operating Expenses  1,376  1,882 -26.9%  2,623 -47.5% Total Non-Interest Expense  19,548  18,804 4.0%  21,249 -8.0% INCOME BEFORE PROVISION FOR INCOME TAXES  14,353  12,635 13.6%  5,533 159.4% (Benefit) Provision for Income Taxes  374  (644) -158.1%  27 1285.2%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 OUTSTANDING 31,496,540 31,489,201   31,489,201              HANMI FINANCIAL CORPORATION AND SUBSIDIARIES    CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)    (In Thousands, Except Per Share Data)                Year Ended  December 31,December 31,Percentage  20122011Change 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 Securities  394  216 82.4% 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 Other Banks  422  315 34.0% 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 Advances  165  662 -75.1% Interest on Junior Subordinated Debentures  2,703  2,915 -7.3% Interest on Other Borrowings  --   95 -100.0% Total Interest Expense  18,745  27,630 -32.2% NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES  101,055  101,177 -0.1% Provision for Credit Losses  6,000  12,100 -50.4% NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES  95,055  89,077 6.7% 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 Fees  4,615  4,677 -1.3% 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 Securities  1,396  1,635 -14.6% Other-than-temporary Impairment Loss on Investment Securities  (292)  --  NM  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 Assessments  4,431  6,630 -33.2% 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 Insurance  1,186  2,940 -59.7% 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 Offerings  --   2,220 -100.0% 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 31,September 30,PercentageDecember 31,Percentage  20122012Change2011Change             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) During Period  121  1,655 -92.7%  (382) 131.7% Unrealized Holding Gain Arising from the transfer of Held-to-Maturity Securities to Available-for-Sale Securities  --   1,968 -100.0%  --  NM  Less: Reclassification Adjustment for Loss (Gain) Included in Net Income  (4)  166 -102.4%  (1) 300.0% Unrealized Gain on Interest Rate Swap  --   --  NM  (1) -100.0% Unrealized Gain (Loss) on Interest-Only Strip of Servicing Assets  --   2 -100.0%  6 -100.0% Income Taxes Related to Items of Other Comprehensive Income  (63)  (1,581) -96.0%  --  NM  Other Comprehensive Income  54  2,210 -97.6%  (378) -114.3%COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAREHOLDERS $ 14,033  $ 15,489 -9.4% $ 5,128 173.7%                          Year Ended      December 31, December 31,Percentage      20122011Change                 NET INCOME   $ 90,374  $ 28,147 221.1%                 OTHER COMPREHENSIVE INCOME, NET OF TAX           Unrealized Gain on Securities           Unrealized Holding Gain Arising During Period  2,369  8,123 -70.8%     Unrealized Holding Gain Arising from the transfer of Held-to-Maturity Securities to Available-for-Sale Securities  1,968  --  NM      Less: Reclassification Adjustment for (Gain) Included in Net Income  (1,104)  (1,635) -32.5%     Unrealized Gain on Interest Rate Swap  9  2 350.0%     Unrealized Gain (Loss) on Interest-Only Strip of Servicing Assets  (4)  (2) 100.0%     Income Taxes Related to Items of Other Comprehensive Income  (1,344)  --  NM      Other Comprehensive Income  1,894  6,488 -70.8%    COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAREHOLDERS $ 92,268  $ 34,635  166.4%                HANMI FINANCIAL CORPORATION AND SUBSIDIARIES        SELECTED FINANCIAL DATA (UNAUDITED)          (In Thousands)                        Three Months EndedTwelve Months Ended  December 31,September 30,December 31,December 31,December 31,  20122012201120122011AVERAGE BALANCES:           Average Gross Loans, Net of Deferred Loan Fees (1)  $ 2,026,122  $ 1,958,819  $ 2,012,008  $ 1,993,367  $ 2,114,546 Average Investment Securities  $ 421,520  $ 386,513  $ 421,386  $ 412,554  $ 446,198 Average Interest-Earning Assets  $ 2,731,473  $ 2,694,571  $ 2,656,213  $ 2,686,425  $ 2,752,696 Average Total Assets  $ 2,872,897  $ 2,829,778  $ 2,708,364  $ 2,792,352  $ 2,787,707 Average Deposits  $ 2,388,725  $ 2,361,534  $ 2,350,558  $ 2,349,082  $ 2,404,655 Average Borrowings  $ 85,390  $ 85,482  $ 99,545  $ 85,760  $ 153,148 Average Interest-Bearing Liabilities  $ 1,767,640  $ 1,766,709  $ 1,814,548  $ 1,758,135  $ 1,957,077 Average Stockholders' Equity  $ 370,307  $ 352,980  $ 229,868  $ 328,016  $ 200,517 Average Tangible Equity  $ 368,945  $ 351,577  $ 228,116  $ 326,589  $ 198,626            PERFORMANCE RATIOS:           Return on Average Assets (2) 1.94% 1.87% 0.81% 3.24% 1.01% Return on Average Stockholders' Equity (2) 15.02% 14.97% 9.50% 27.55% 14.04% Return on Average Tangible Equity (2) 15.07% 15.03% 9.58% 27.67% 14.17% Efficiency Ratio 57.66% 59.81% 69.03% 61.07% 67.22% Net Interest Spread (2),(3) 3.57% 3.34% 3.22% 3.40% 3.27% Net Interest Margin (2),(3) 3.86% 3.69% 3.66% 3.77% 3.68%            ALLOWANCE FOR LOAN LOSSES:           Balance at Beginning of Period  $ 66,107  $ 71,893  $ 100,792  $ 89,936  $ 146,059 Provision Charged to Operating Expense  407  117  4,241  7,157  12,536 Charge-Offs, Net of Recoveries  (3,209)  (5,903)  (15,097)  (33,788)  (68,659) Balance at End of Period  $ 63,305  $ 66,107  $ 89,936  $ 63,305  $ 89,936            ASSET QUALITY RATIOS:           Net Loan Charge-Offs to Average Gross Loans 0.63% 1.21% 3.00% 1.70% 3.25% Allowance for Loan Losses to Total Gross Loans 3.09% 3.38% 4.64% 3.09% 4.64% Allowance for Loan Losses to Total Non-Performing Loans 169.81% 147.92% 171.71% 169.81% 171.71% Non-Performing Assets to Total Assets 1.32% 1.59% 1.91% 1.32% 1.91% Non-Performing Loans to Gross Loans 1.82% 2.28% 2.70% 1.82% 2.70% Total Non-Performing Assets to Allowance for Loan Losses 60.11% 68.16% 58.44% 60.11% 58.44%            ALLOWANCE FOR OFF-BALANCE SHEET ITEMS:           Balance at Beginning of Period  $ 2,231  $ 2,348  $ 3,222  $ 2,981  $ 3,417 Provision Charged to Operating Expense  (407)  (117)  (241)  (1,157)  (436) Balance at End of Period  $ 1,824  $ 2,231  $ 2,981  $ 1,824  $ 2,981            NON-PERFORMING ASSETS:           Non-Accrual Loans  $ 37,279  $ 44,692  $ 52,378     Loans 90 Days or More Past Due and Still Accruing  --   --   --      Total Non-Performing Loans  37,279  44,692  52,378     Other Real Estate Owned, Net  774  364  180     Total Non-Performing Assets  38,053  45,056  52,558     Non-Performing Loans Classified as Loans Held for Sale  484  4,421  15,023     Non-Performing Assets (including Loans Held for Sale)  $ 38,537  $ 49,477  $ 67,581                DELINQUENT LOANS (30 to 89 Days Past Due and Still Accruing)  $ 2,371  $ 4,005  $ 13,945     Delinquent Loans to Total Gross Loans 0.12% 0.20% 0.72%                (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,  201220122011LOAN 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 Cost or Fair Value  8,306  10,736  22,587 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 Ratio 13.09% 12.77% 10.36%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 Ratio 15.29% 14.96% 12.48%        HANMI FINANCIAL CORPORATION AND SUBSIDIARIES                AVERAGE BALANCE, AVERAGE YIELD EARNED AND AVERAGE RATE PAID (UNAUDITED)          (In Thousands)                                        Three Months Ended  December 31, 2012September 30, 2012December 31, 2011    InterestAverage  InterestAverage  InterestAverage  AverageIncome /Yield /AverageIncome /Yield /AverageIncome /Yield /  BalanceExpenseRateBalanceExpenseRateBalanceExpenseRateASSETS                   Interest-Earning Assets:                   Gross Loans, Net of Deferred Loan Fees  $ 2,026,122  $ 27,418 5.38%  $ 1,958,819  $ 26,781 5.44%  $ 2,012,008  $ 28,162 5.55% Municipal Securities - Taxable  46,203  456 3.95%  44,887  452 4.03%  44,913  451 4.02% Municipal Securities - Tax Exempt  12,731  146 4.59%  12,587  151 4.80%  12,987  153 4.71% Obligations of Other U.S. Government Agencies  82,995  387 1.87%  74,345  280 1.51%  83,927  324 1.54% Other Debt Securities  279,591  1,295 1.85%  254,694  1,260 1.98%  279,559  1,204 1.72% 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 Sold  6,685  22 1.31%  78,967  191 0.96%  77,717  182 0.93% Interest-Bearing Deposits in Other Banks  239,048  153 0.25%  221,461  142 0.26%  108,211  72 0.26% Total Interest-Earning Assets  2,731,473  30,190 4.40%  2,694,571  29,455 4.35%  2,656,213  30,693 4.58%                     Noninterest-Earning Assets:                   Cash and Cash Equivalents  73,567      70,591      69,635     Allowance for Loan Losses  (65,228)      (71,481)      (99,182)     Other Assets  133,085      136,097      81,698     Total Noninterest-Earning Assets  141,424      135,207      52,151                        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 Accounts  583,259  772 0.53%  555,454  859 0.62%  449,998  644 0.57% Time Deposits of $100,000 or More   623,780  1,312 0.84%  660,036  1,467 0.88%  825,444  3,082 1.48% 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 Debentures  82,406  303 1.46%  82,406  804 3.88%  82,406  767 3.69% Total Interest-Bearing Liabilities  1,767,640  3,708 0.83%  1,766,709  4,483 1.01%  1,814,548  6,206 1.36%                     Noninterest-Bearing Liabilities:                   Demand Deposits  706,475      680,307      635,555     Other Liabilities  28,475      29,782      28,393     Total Noninterest-Bearing Liabilities  734,950      710,089      663,948                         Total Liabilities  2,502,590      2,476,798      2,478,496     Shareholders' Equity  370,307      352,980      229,868                        TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,872,897     $ 2,829,778     $ 2,708,364                        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, 2012December 31,2011    InterestAverage  InterestAverage  AverageIncome /Yield /AverageIncome /Yield /  BalanceExpenseRateBalanceExpenseRateASSETS             Interest-Earning Assets:             Gross Loans, Net of Deferred Loan Fees  $ 1,993,367  $ 108,982 5.47%  $ 2,114,546  $ 117,671 5.56% Municipal Securities - Taxable  45,213  1,796 3.97%  21,740  884 4.07% Municipal Securities - Tax Exempt  12,902  606 4.70%  6,544  332 5.07% Obligations of Other U.S. Government Agencies  77,053  1,372 1.78%  121,961  1,963 1.61% Other Debt Securities  277,386  5,250 1.89%  295,953  6,921 2.34% 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 Sold  70,478  706 1.00%  38,693  276 0.71% Interest-Bearing Deposits in Other Banks  164,492  422 0.26%  113,829  315 0.28% Total Interest-Earning Assets  2,686,425  120,012 4.47%  2,752,696  128,923 4.68%               Noninterest-Earning Assets:             Cash and Cash Equivalents  71,123      68,255     Allowance for Loan Losses  (75,914)      (119,233)     Other Assets  110,718      85,989     Total Noninterest-Earning Assets  105,927      35,011                  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 Accounts  529,976  3,085 0.58%  465,840  3,461 0.74% Time Deposits of $100,000 or More   681,173  7,290 1.07%  913,643  13,855 1.52% 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 Debentures  82,406  2,703 3.28%  82,406  2,915 3.54% Total Interest-Bearing Liabilities  1,758,135  18,745 1.07%  1,957,077  27,630 1.41%               Noninterest-Bearing Liabilities:             Demand Deposits  676,707      600,726     Other Liabilities  29,494      29,387     Total Noninterest-Bearing Liabilities  706,201      630,113                   Total Liabilities  2,464,336      2,587,190     Shareholders' Equity  328,016      200,517                  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,792,352     $ 2,787,707                  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,  201220122011HANMI 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 Assets Ratio 13.13% 12.81% 10.41% Tangible Common Equity to Tangible Assets Ratio 13.09% 12.77% 10.36%         Common Shares Outstanding  31,496,540  31,489,201  31,487,924 Tangible Common Equity Per Common Share  $ 11.97  $ 11.52  $ 9.02        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 Assets Ratio 15.29% 14.96% 12.48% Tangible Common Equity to Tangible Assets Ratio 15.29% 14.96% 12.48%CONTACT: Hanmi Financial Corporation Mark (Shick) Yoon, CPA CVA SVP & Interim Chief Financial Officer, Chief Strategy Officer Direct Phone: 213-427-5636