Attached files
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8-K - FORM 8-K - HANMI FINANCIAL CORP | v54239e8vk.htm |
EX-10.1 - EX-10.1 - HANMI FINANCIAL CORP | v54239exv10w1.htm |
EX-10.2 - EX-10.2 - HANMI FINANCIAL CORP | v54239exv10w2.htm |
Exhibit 99.1
Hanmi Financial Corporation
Reports Third-quarter 2009 Financial Results and
Formalizes Agreement with Regulators
Reports Third-quarter 2009 Financial Results and
Formalizes Agreement with Regulators
LOS ANGELES November 5, 2009 Hanmi Financial Corporation (NASDAQ: HAFC) (we, our or
Hanmi), the holding company for Hanmi Bank (the Bank), reported a third-quarter net loss of
$59.7 million, or ($1.26) per share, compared to net income of $4.3 million, or $0.09 per diluted
share, in the third quarter of 2008. During the third quarter, we incurred tax charges of $38.2
million related to a valuation allowance of deferred tax assets. Excluding this charge, the net
loss would have been $21.5 million for the third quarter of 2009, primarily driven by $49.5 million
in credit loss provisions.
Hanmi also announced today that Hanmi and the Bank have entered into a Written Agreement (the
Written Agreement) with the Federal Reserve Bank of San Francisco (the FRB), effective as of
November 2, 2009. In addition, the board of directors of the Bank has consented to the issuance of
a Final Order (the Final Order) by the California Department of Financial Institutions (the
DFI), effective as of November 2, 2009. The Written Agreement and the Final Order provide for
certain actions to be taken in cooperation with the regulatory authorities and are intended to
address various matters including issues related to capital, liquidity and asset quality.
Jay S. Yoo, President and Chief Executive Officer, commented, In the continuing weakness of the
credit markets, the third-quarter provision for loan losses was again a record high, leading to
disappointing operating results. However, we have continued our business strategies in the third
quarter and achieved meaningful improvements in our core banking foundation. The balance sheet
deleveraging strategy changed our liability profile to core-deposit based and substantially
expanded our net interest margin. Various asset quality management programs, as well as higher
loan charge-offs and transfers to other real estate owned, at last reduced delinquent loans and we
also took a step forward in our capital raising efforts by receiving a $6.95 million capital
infusion from Leading Investment & Securities Co. as previously announced. We are currently in
active negotiations with certain Korean institutional investors relating to a larger capital
infusion sufficient for Hanmi to weather this credit environment.
Regulatory Agreements
The Final Order and Written Agreement require the Bank to prepare and submit written plans to the
DFI and the FRB that address the following items: (i) strengthening board oversight of the
management and operation of the Bank; (ii) strengthening credit risk management practices; (iii)
improving credit administration policies and procedures; (iv) improving the Banks position with
respect to problem assets; (v) improving the capital position of the Bank and, with respect to the
Written Agreement, of Hanmi; (vi) maintaining adequate reserves for loan and lease losses; (vii)
improving the Banks earnings through a strategic plan and a budget for 2010; (viii) improving the
Banks liquidity position and funds management practices; and (ix) contingency funding. In
addition, the Order and the Agreement place restrictions on the Banks lending to borrowers who
have adversely classified loans with the Bank and require the Bank to charge off or collect certain
problem loans. The Final Order and Written Agreement also require the Bank to review and revise
its allowance for loan and lease losses consistent with relevant supervisory guidance.. The Bank
is also prohibited from paying dividends, incurring, increasing or guaranteeing any debt, or making
certain changes to its business without prior approval from the DFI, and the Bank and Hanmi must
obtain prior approval from the FRB prior to declaring and paying dividends.
- 1 -
Under the Final Order, the Bank is also required to increase its capital and maintain certain
regulatory capital ratios prior to certain dates specified therein. By July 31, 2010, the Bank
will be required to increase its contributed equity capital by not less than an additional $100
million. The Bank will be required to maintain a ratio of tangible shareholders equity to total
tangible assets as follows:
Ratio of Tangible Shareholders | ||
Date | Equity to Total Tangible Assets | |
By December 31, 2009 | Not Less Than 7.0 Percent | |
By July 31, 2010 | Not Less Than 9.0 Percent | |
From December 31, 2010 and Until the Order is Terminated |
Not Less Than 9.5 Percent |
If the Bank is not able to maintain the capital ratios identified in the Final Order, it must
notify the DFI, and Hanmi and the Bank are required to notify the FRB if their respective capital
ratios fall below those set forth in the capital plan to be submitted to the FRB.
Results of Operations
The net interest income before provision for credit losses increased by $3.4 million, or 14.6
percent, to $26.5 million in the third quarter of 2009 compared to $23.1 million in the prior
quarter. Such increase in net interest income reflects the effects of our core deposit campaign
that was launched in the prior quarter. Most of our high-cost six-month time deposits that were
offered from December 2008 through March 2009 and matured in the third quarter of 2009 have been
rolled over into lower-cost deposits and the average cost of interest-bearing deposits decreased by
67 basis points to 2.70 percent from 3.37 percent in the second quarter of 2009. On the other
hand, our stringent lending policy allowed us to increase our loan pricing and to improve the
average yield on the loan portfolio to 5.50 percent in the third quarter of 2009 compared to 5.46
percent in the prior quarter. The combined result was the increase of net interest margin by 52
basis points to 3.00 percent in the third quarter compared to 2.48 percent in the second quarter.
The provision for credit losses in the third quarter of 2009 increased by $25.6 million to $49.5
million compared to $23.9 million in the prior quarter, due mainly to the $16.4 million additional
provision provided to the impaired loans that was part of our continuing efforts to address the
further deteriorating commercial real estate market. For the first nine months of 2009, the
provision for credit losses more than doubled to $119.4 million compared to $50.2 million for the
prior years same period, reflecting our effort to prepare for the uncertain credit risk in this
weak credit market.
Total non-interest income in the third quarter of 2009 was $8.2 million compared to $6.7 million in
the prior quarter and $5.3 million in the third quarter of 2008. The sequential increase in
non-interest income reflects an $864,000 net gain on sales of SBA loans. The second quarter income
was also reduced by an impairment loss of $909,000 on a low income housing investment
Total non-interest expense in the third quarter of 2009 was $23.7 million compared to $24.7 million
in the second quarter, a decrease of $1.0 million, or 4.1 percent, and an increase of $1.5 million,
or 6.5 percent, compared to $22.2 million in the third quarter of 2008. The decrease from the
second quarter of 2009 was mainly caused by the reduction of deposit insurance premiums and
regulatory assessments. Increased expenses in the second quarter
- 2 -
reflect the one-time FDIC special
assessment fees of $1.8 million. Reflecting
a second-quarter out-of-court settlement fee of $850,000, third-quarter loan-related expenses
declined by 84.2 percent to $192,000 from $1.2 million in the second quarter. Salaries and
employee benefits, the biggest single contributor to total non-interest expense, was essentially
unchanged at $8.6 million compared to $8.5 million in the prior quarter. We will continue to hold
down all operating costs for the remainder of 2009; however, further cost control may be offset by
regulatory-related expenses such as professional fees and potential FDIC assessments. We also
expect that expenses to manage our asset quality in this stressed credit environment continue to be
significant. In the third quarter, expenses in relation with other real estate owned (OREO), such
as valuation expenses and maintenance costs, more than doubled to $3.4 million from the prior
quarters $1.5 million.
Due to increased net interest income before provision for credit losses and increased non-interest
income, along with decreased non-interest expense, the efficiency ratio (non-interest expense
divided by the sum of net interest income before provision for credit losses and non-interest
income) sequentially improved to 68.2 percent compared to 82.9 percent in the second quarter of
2009.
Balance Sheet and Asset Quality
Total assets at September 30, 2009 decreased by $418.3 million, or 10.8 percent, to $3.46 billion
from $3.88 billion at December 31, 2008, and decreased by $308.5 million, or 8.2 percent, from
$3.77 billion at September 30, 2008, reflecting the Banks ongoing strategy to deleverage the
balance sheet.
With our ongoing stringent lending policy to carefully evaluate all maturing loans and selectively
renew our loans based on quality, gross loans, net of deferred loan fees, decreased by $384.6
million, or 11.4 percent, to $2.98 billion as of September 30, 2009, compared to $3.36 billion at
December 31, 2008, and decreased by $367.5 million, or 11.0 percent, compared to $3.35 billion at
September 30, 2008.
The success of our core deposit campaign together with our deleveraging strategy substantially
changed our liability profile in the third quarter by increasing our core deposits and decreasing
the brokered deposits and borrowings.
Our total deposits decreased by $78.2 million, or 2.5 percent, to $2.99 billion at September 30,
2009, compared to $3.07 billion at December 31, 2008, and increased by $192.5 million, or 6.9
percent, compared to $2.80 billion at September 30, 2008. Such decrease was carefully designed
under our deleveraging strategy which allows some run off of volatile and expensive time deposits.
For the nine months ended September 30, 2009, time deposits decreased by $472.1 million and our
non-time deposits increased by $393.9 million. For the same nine month period, FHLB advances also
decreased by $261.4 million, or 61.9 percent, to $160.8 million at September 30, 2009, compared to
$422.2 million at December 31, 2008, At September 30, 2009, brokered deposits, excluding CDARS,
were $365.7 million, a decrease of $508.4 million, or 58.2 percent, compared to $874.1 million at
December 31, 2008.
Third quarter charge-offs, net of recoveries, were $29.9 million compared to $23.6 million in the
prior quarter and $11.8 million in the third quarter of 2008. Out of the third quarter
charge-offs, $22.8 million was made from unsecured commercial and industrial (C&I) loans,
including one large loan in the amount of $7.0 million to an international trading company. Also
included were some commercial real estate and business property loans due to decreases in hard
collateral values, resulted in partial charge-offs of $4.0 million, with the remaining balance of
$3.5 million consisting of consumer and SBA loans.
- 3 -
Delinquent loans were $151.0 million (5.07 percent of total gross loans) at September 30, 2009,
compared to $178.7 million (5.66 percent of total gross loans) at June 30, 2009, $164.4 million
(4.95 percent of total gross loans) at March 31, 2009, $128.5 million (3.82 percent of total gross
loans) at December 31, 2008, and $102.9 million (3.08 percent of total gross loans) at Sept 30,
2008. The decrease in delinquencies from the prior quarter is attributable to diligent collection
efforts, which involve proactive negotiations with borrowers in financial difficulty, often leading
to loan modifications or charge-offs.
Non-performing loans (NPL) at September 30, 2009 were $174.4 million (5.85 percent of total gross
loans), compared to $167.3 million (5.3 percent of total gross loans) at June 30, 2009, $156.3
million (4.71 percent of total gross loans) at March 31, 2009, $121.9 million (3.62 percent of
total gross loans) at December 31, 2008, and $111.9 million (3.34 percent of total gross loans) at
September 30, 2008. The breakdown in third quarter 2009 NPLs was as follows: 10.4 percent were
construction loans, 47.6 percent were C&I loans including owner/user business property loans, 30.3
percent were commercial real estate loans (CRE) loans, 9.5 percent were SBA loans, and 2.2
percent were consumer loans.
As of September 30, 2009, total non-performing assets of $201.6 million included OREO of $27.1
million compared to total non-performing assets of $201.3 million with OREO of $34.0 million at
June 30, 2009, $157.5 million with OREO of $1.2 million at March 31, 2009, and $122.7 million with
OREO of $823,000 at December 31, 2008. At September 30, 2008, total non-performing assets were
$114.9 million, which included OREO of $3.0 million. At September 30, 2009, OREO was $6.9 million
lower, when compared to the prior quarter, mainly due to the sale of a golf course north of San
Diego.
At September 30, 2009, the allowance for loan losses was $124.8 million, or 4.19 percent of total
gross loans (71.53 percent of total non-performing loans), compared to $71.0 million, or 2.11
percent of total gross loans (58.23 percent of total non-performing loans), at December 31, 2008,
and $63.9 million, or 1.91 percent of total gross loans (57.16 percent of total non-performing
loans), at September 30, 2008.
Capital Adequacy
On September 4, 2009, Hanmi received an investment of $6.95 million from Leading Investment &
Securities Co. Ltd. IWL Partners LLC, an affiliate of Leading, is additionally preparing a
separate definitive agreement that would result in a larger equity capital infusion. If completed
as expected, the Korean investment will augment Hanmis capital reserves and, in conjunction with
our program to deleverage the balance sheet, will enhance our ability to weather the current
recession and emerge well-positioned to take advantage of opportunities as the economy recovers.
At September 30, 2009, the Banks Tier 1 Leverage, Tier 1 Risk-Based Capital, and Total Risk-Based
Capital ratios were 7.05 percent, 8.40 percent and 9.69 percent, respectively, compared to 8.85
percent, 9.44 percent, and 10.71 percent, respectively, at December 31, 2008. The Banks ratio of
tangible shareholders equity to total tangible assets was 7.57 percent at September 30, 2009.
Deferred Tax Assets
During the third quarter of 2009, Hanmi established a valuation allowance of $44.9 million against
its existing net deferred tax assets. The Companys primary deferred tax assets relate to its
allowance for loan losses and
- 4 -
impairment charges. Under generally accepted accounting principles,
a valuation allowance must be recognized if it is more likely than
not that such deferred tax assets will not be realized. Appropriate consideration is given to all
available evidence (both positive and negative) related to the realization of the deferred tax
assets on a quarterly basis.
In conducting its regular quarterly evaluation, Hanmi made a determination to establish a valuation
allowance at September 30, 2009 based primarily upon the existence of a three-year cumulative loss
derived by combining the pre-tax income (loss) reported during the two most recent annual periods
with managements current projected results for the year ending 2009. This three-year cumulative
loss position is primarily attributable to significant provisions for credit losses incurred during
2009. Although the Companys current financial forecasts indicate that sufficient taxable income
will be generated in the future to ultimately realize the existing deferred tax benefits, those
forecasts were not considered to constitute sufficient positive evidence to overcome the observable
negative evidence associated with the three-year cumulative loss position determined at September
30, 2009. Although the creation of the valuation allowance will increase tax expense for the
quarter ended September 30, 2009 and similarly reduce tangible book value, it will not have an
effect on Hanmis cash flows. The remaining net deferred tax assets of $2.5 million will be
reversed by NOL carryover during the 4th quarter of 2009.
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: 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; the ability of Leading
to complete the transactions contemplated by the Securities Purchase Agreement; 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 (SBA) 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; 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 successfully integrate acquisitions we may make;
our ability to control expenses; 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, 2008 and current and periodic
reports filed with the Securities and Exchange Commission thereafter, which could cause actual
results to differ from those projected. You should understand that it is not possible to predict or
identify all such risks. Consequently, you should not consider such disclosures to be a
- 5 -
complete
discussion of all potential risks or uncertainties. We undertake no obligation to update such
forward-looking statements except as required by law.
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 two
loan production offices in Virginia and Washington State. Hanmi Bank specializes in commercial, SBA
and trade finance lending, and is a recognized community leader. Hanmi Banks 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.hanmi.com.
Contact
Hanmi Financial Corporation
BRIAN E. CHO
|
DAVID YANG | |
Chief Financial Officer
|
Investor Relations and Corporate Planning | |
(213) 368-3200
|
(213) 637-4798 |
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HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
September 30, | December 31, | % | September 30, | % | ||||||||||||||||
2009 | 2008 | Change | 2008 | Change | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and Due from Banks |
$ | 57,727 | $ | 83,933 | (31.2 | )% | $ | 81,640 | (29.3 | )% | ||||||||||
Interest-Bearing Deposits in Other Banks |
155,607 | 2,014 | 7,626.3 | % | 755 | 20,510.2 | % | |||||||||||||
Federal Funds Sold and Securities Purchased Under Resale Agreements |
| 130,000 | (100.0 | )% | 5,000 | (100.0 | )% | |||||||||||||
Cash and Cash Equivalents |
213,334 | 215,947 | (1.2 | )% | 87,395 | 144.1 | % | |||||||||||||
Investment Securities |
205,901 | 197,117 | 4.5 | % | 221,714 | (7.1 | )% | |||||||||||||
Loans: |
||||||||||||||||||||
Gross Loans, Net of Deferred Loan Fees |
2,977,504 | 3,362,111 | (11.4 | )% | 3,345,049 | (11.0 | )% | |||||||||||||
Allowance for Loan Losses |
(124,768 | ) | (70,986 | ) | 75.8 | % | (63,948 | ) | 95.1 | % | ||||||||||
Loans Receivable, Net |
2,852,736 | 3,291,125 | (13.3 | )% | 3,281,101 | (13.1 | )% | |||||||||||||
Due from Customers on Acceptances |
1,859 | 4,295 | (56.7 | )% | 7,382 | (74.8 | )% | |||||||||||||
Premises and Equipment, Net |
19,302 | 20,279 | (4.8 | )% | 20,703 | (6.8 | )% | |||||||||||||
Accrued Interest Receivable |
11,389 | 12,347 | (7.8 | )% | 13,801 | (17.5 | )% | |||||||||||||
Other Real Estate Owned, Net |
27,140 | 823 | 3,197.7 | % | 2,988 | 808.3 | % | |||||||||||||
Deferred Income Taxes, Net |
2,464 | 29,456 | (91.6 | )% | 18,682 | (86.8 | )% | |||||||||||||
Servicing Assets |
3,957 | 3,791 | 4.4 | % | 4,018 | (1.5 | )% | |||||||||||||
Other Intangible Assets, Net |
3,736 | 4,950 | (24.5 | )% | 5,404 | (30.9 | )% | |||||||||||||
Investment in Federal Home Loan Bank Stock, at Cost |
30,697 | 30,697 | | 30,424 | 0.9 | % | ||||||||||||||
Investment in Federal Reserve Bank Stock, at Cost |
10,053 | 10,228 | (1.7 | )% | 11,733 | (14.3 | )% | |||||||||||||
Bank-Owned Life Insurance |
26,171 | 25,476 | 2.7 | % | 25,239 | 3.7 | % | |||||||||||||
Income Taxes Receivable |
34,908 | 11,712 | 198.1 | % | 17,785 | 96.3 | % | |||||||||||||
Other Assets |
13,843 | 17,573 | (21.2 | )% | 17,622 | (21.4 | )% | |||||||||||||
TOTAL ASSETS |
$ | 3,457,490 | $ | 3,875,816 | (10.8 | )% | $ | 3,765,991 | (8.2 | )% | ||||||||||
LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||||||||||||||
Liabilities: |
||||||||||||||||||||
Deposits: |
||||||||||||||||||||
Noninterest-Bearing |
$ | 561,548 | $ | 536,944 | 4.6 | % | $ | 634,593 | (11.5 | )% | ||||||||||
Interest-Bearing |
2,430,312 | 2,533,136 | (4.1 | )% | 2,164,784 | 12.3 | % | |||||||||||||
Total Deposits |
2,991,860 | 3,070,080 | (2.5 | )% | 2,799,377 | 6.9 | % | |||||||||||||
Accrued Interest Payable |
19,730 | 18,539 | 6.4 | % | 11,344 | 73.9 | % | |||||||||||||
Bank Acceptances Outstanding |
1,859 | 4,295 | (56.7 | )% | 7,382 | (74.8 | )% | |||||||||||||
Federal Home Loan Bank Advances |
160,828 | 422,196 | (61.9 | )% | 583,315 | (72.4 | )% | |||||||||||||
Other Borrowings |
1,496 | 787 | 90.1 | % | 1,657 | (9.7 | )% | |||||||||||||
Junior Subordinated Debentures |
82,406 | 82,406 | | 82,406 | | |||||||||||||||
Accrued Expenses and Other Liabilities |
12,191 | 13,598 | (10.3 | )% | 13,314 | (8.4 | )% | |||||||||||||
Total Liabilities |
3,270,370 | 3,611,901 | (9.5 | )% | 3,498,795 | (6.5 | )% | |||||||||||||
Stockholders Equity |
187,120 | 263,915 | (29.1 | )% | 267,196 | (30.0 | )% | |||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY |
$ | 3,457,490 | $ | 3,875,816 | (10.8 | )% | $ | 3,765,991 | (8.2 | )% | ||||||||||
- 7 -
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands, Except Per Share Data)
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
Sept. 30, | June 30, | % | Sept. 30, | % | Sept. 30, | Sept. 30, | % | |||||||||||||||||||||||||
2009 | 2009 | Change | 2008 | Change | 2009 | 2008 | Change | |||||||||||||||||||||||||
INTEREST AND DIVIDEND INCOME: |
||||||||||||||||||||||||||||||||
Interest and Fees on Loans |
$ | 42,705 | $ | 44,718 | (4.5 | )% | $ | 56,134 | (23.9 | )% | $ | 132,508 | $ | 172,637 | (23.2 | )% | ||||||||||||||||
Taxable Interest on Investment Securities |
1,541 | 1,370 | 12.5 | % | 2,049 | (24.8 | )% | 4,261 | 7,743 | (45.0 | )% | |||||||||||||||||||||
Tax-Exempt Interest on Investment Securities |
607 | 621 | (2.3 | )% | 650 | (6.6 | )% | 1,871 | 2,071 | (9.7 | )% | |||||||||||||||||||||
Interest on Term Federal Funds Sold |
293 | 695 | (57.8 | )% | | | 1,688 | | | |||||||||||||||||||||||
Dividends on Federal Reserve Bank Stock |
150 | 153 | (2.0 | )% | 176 | (14.8 | )% | 456 | 528 | (13.6 | )% | |||||||||||||||||||||
Interest on Federal Funds Sold and Securities Purchased
Under Resale Agreements |
67 | 112 | (40.2 | )% | 23 | 191.3 | % | 261 | 137 | 90.5 | % | |||||||||||||||||||||
Interest on Interest-Bearing Deposits in Other Banks |
68 | 11 | 518.2 | % | 4 | 1,600.0 | % | 81 | 5 | 1,520.0 | % | |||||||||||||||||||||
Dividends on Federal Home Loan Bank Stock |
64 | | | 405 | (84.2 | )% | 64 | 953 | (93.3 | )% | ||||||||||||||||||||||
Total Interest and Dividend Income |
45,495 | 47,680 | (4.6 | )% | 59,441 | (23.5 | )% | 141,190 | 184,074 | (23.3 | )% | |||||||||||||||||||||
INTEREST EXPENSE: |
||||||||||||||||||||||||||||||||
Interest on Deposits |
17,365 | 22,686 | (23.5 | )% | 19,365 | (10.3 | )% | 62,836 | 64,699 | (2.9 | )% | |||||||||||||||||||||
Interest on Federal Home Loan Bank Advances |
865 | 1,010 | (14.4 | )% | 3,324 | (74.0 | )% | 2,987 | 11,406 | (73.8 | )% | |||||||||||||||||||||
Interest on Junior Subordinated Debentures |
747 | 846 | (11.7 | )% | 1,150 | (35.0 | )% | 2,581 | 3,763 | (31.4 | )% | |||||||||||||||||||||
Interest on Other Borrowings |
| 2 | (100.0 | )% | 5 | (100.0 | )% | 2 | 344 | (99.4 | )% | |||||||||||||||||||||
Total Interest Expense |
18,977 | 24,544 | (22.7 | )% | 23,844 | (20.4 | )% | 68,406 | 80,212 | (14.7 | )% | |||||||||||||||||||||
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES |
26,518 | 23,136 | 14.6 | % | 35,597 | (25.5 | )% | 72,784 | 103,862 | (29.9 | )% | |||||||||||||||||||||
Provision for Credit Losses |
49,500 | 23,934 | 106.8 | % | 13,176 | 275.7 | % | 119,387 | 50,226 | 137.7 | % | |||||||||||||||||||||
NET INTEREST INCOME (LOSS) AFTER PROVISION FOR CREDIT LOSSES |
(22,982 | ) | (798 | ) | 2,779.9 | % | 22,421 | (202.5 | )% | (46,603 | ) | 53,636 | (186.9 | )% | ||||||||||||||||||
NON-INTEREST INCOME: |
||||||||||||||||||||||||||||||||
Service Charges on Deposit Accounts |
4,275 | 4,442 | (3.8 | )% | 4,648 | (8.0 | )% | 13,032 | 13,904 | (6.3 | )% | |||||||||||||||||||||
Insurance Commissions |
1,063 | 1,185 | (10.3 | )% | 1,194 | (11.0 | )% | 3,430 | 3,893 | (11.9 | )% | |||||||||||||||||||||
Remittance Fees |
511 | 545 | (6.2 | )% | 499 | 2.4 | % | 1,579 | 1,543 | 2.3 | % | |||||||||||||||||||||
Trade Finance Fees |
512 | 499 | 2.6 | % | 784 | (34.7 | )% | 1,517 | 2,474 | (38.7 | )% | |||||||||||||||||||||
Other Service Charges and Fees |
489 | 467 | 4.7 | % | 433 | 12.9 | % | 1,439 | 1,852 | (22.3 | )% | |||||||||||||||||||||
Net Gain on Sales of Loans |
864 | | | | | 866 | 765 | 13.2 | % | |||||||||||||||||||||||
Bank-Owned Life Insurance Income |
234 | 227 | 3.1 | % | 241 | (2.9 | )% | 695 | 715 | (2.8 | )% | |||||||||||||||||||||
Gain on Sales of Investment Securities |
| 1 | (100.0 | )% | | | 1,277 | 618 | 106.6 | % | ||||||||||||||||||||||
Loss on Sales of Investment Securities |
| | | (483 | ) | (100.0 | )% | (109 | ) | (483 | ) | (77.4 | )% | |||||||||||||||||||
Other-Than-Temporary Impairment Loss on Investment Securities |
| | | (2,410 | ) | (100.0 | )% | | (2,410 | ) | (100.0 | )% | ||||||||||||||||||||
Other Operating Income (Loss) |
265 | (695 | ) | (138.1 | )% | 422 | (37.2 | )% | (462 | ) | 1,874 | (124.7 | )% | |||||||||||||||||||
Total Non-Interest Income |
8,213 | 6,671 | 23.1 | % | 5,328 | 54.1 | % | 23,264 | 24,745 | (6.0 | )% | |||||||||||||||||||||
NON-INTEREST EXPENSE: |
||||||||||||||||||||||||||||||||
Salaries and Employee Benefits |
8,648 | 8,508 | 1.6 | % | 10,782 | (19.8 | )% | 24,659 | 33,363 | (26.1 | )% | |||||||||||||||||||||
Occupancy and Equipment |
2,834 | 2,788 | 1.6 | % | 2,786 | 1.7 | % | 8,506 | 8,360 | 1.7 | % | |||||||||||||||||||||
Deposit Insurance Premiums and Regulatory Assessments |
2,001 | 3,929 | (49.1 | )% | 780 | 156.5 | % | 7,420 | 2,098 | 253.7 | % | |||||||||||||||||||||
Other Real Estate Owned Expense |
3,372 | 1,502 | 124.5 | % | 2 | N/M | 5,017 | 141 | 3,458.2 | % | ||||||||||||||||||||||
Data Processing |
1,608 | 1,547 | 3.9 | % | 1,498 | 7.3 | % | 4,691 | 4,730 | (0.8 | )% | |||||||||||||||||||||
Professional Fees |
1,239 | 890 | 39.2 | % | 647 | 91.5 | % | 2,745 | 2,627 | 4.5 | % | |||||||||||||||||||||
Supplies and Communications |
603 | 599 | 0.7 | % | 681 | (11.5 | )% | 1,772 | 2,008 | (11.8 | )% | |||||||||||||||||||||
Advertising and Promotion |
447 | 624 | (28.4 | )% | 914 | (51.1 | )% | 1,640 | 2,614 | (37.3 | )% | |||||||||||||||||||||
Loan-Related Expense |
192 | 1,217 | (84.2 | )% | 170 | 12.9 | % | 1,590 | 569 | 179.4 | % | |||||||||||||||||||||
Amortization of Other Intangible Assets |
379 | 406 | (6.7 | )% | 478 | (20.7 | )% | 1,214 | 1,504 | (19.3 | )% | |||||||||||||||||||||
Other Operating Expenses |
2,366 | 2,686 | (11.9 | )% | 3,497 | (32.3 | )% | 7,383 | 7,859 | (6.1 | )% | |||||||||||||||||||||
Impairment Loss on Goodwill |
| | | | | | 107,393 | (100.0 | )% | |||||||||||||||||||||||
Total Non-Interest Expense |
23,689 | 24,696 | (4.1 | )% | 22,235 | 6.5 | % | 66,637 | 173,266 | (61.5 | )% | |||||||||||||||||||||
INCOME (LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES |
(38,458 | ) | (18,823 | ) | 104.3 | % | 5,514 | (797.5 | )% | (89,976 | ) | (94,885 | ) | (5.2 | )% | |||||||||||||||||
Provision (Benefit) for Income Taxes |
21,207 | (9,288 | ) | (328.3 | )% | 1,166 | 1,718.8 | % | (3,580 | ) | 3,393 | (205.5 | )% | |||||||||||||||||||
NET INCOME (LOSS) |
$ | (59,665 | ) | $ | (9,535 | ) | 525.7 | % | $ | 4,348 | (1,472.2 | )% | $ | (86,396 | ) | $ | (98,278 | ) | (12.1 | )% | ||||||||||||
EARNINGS (LOSS) PER SHARE: |
||||||||||||||||||||||||||||||||
Basic |
$ | (1.26 | ) | $ | (0.21 | ) | 500.0 | % | $ | 0.09 | (1,500.0 | )% | $ | (1.86 | ) | $ | (2.14 | ) | (13.1 | )% | ||||||||||||
Diluted |
$ | (1.26 | ) | $ | (0.21 | ) | 500.0 | % | $ | 0.09 | (1,500.0 | )% | $ | (1.86 | ) | $ | (2.14 | ) | (13.1 | )% | ||||||||||||
WEIGHTED-AVERAGE SHARES OUTSTANDING: |
||||||||||||||||||||||||||||||||
Basic |
47,413,141 | 45,924,767 | 45,881,549 | 46,415,225 | 45,869,069 | |||||||||||||||||||||||||||
Diluted |
47,413,141 | 45,924,767 | 45,933,043 | 46,415,225 | 45,869,069 | |||||||||||||||||||||||||||
SHARES OUTSTANDING AT PERIOD-END |
51,201,390 | 46,130,967 | 45,905,549 | 51,201,390 | 45,905,549 |
- 8 -
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED)
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in Thousands)
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
Sept. 30, | June 30, | % | Sept. 30, | % | Sept. 30, | Sept. 30, | % | |||||||||||||||||||||||||
2009 | 2009 | Change | 2008 | Change | 2009 | 2008 | Change | |||||||||||||||||||||||||
AVERAGE BALANCES: |
||||||||||||||||||||||||||||||||
Average Gross Loans, Net of Deferred Loan Fees |
$ | 3,078,104 | $ | 3,282,152 | (6.2 | )% | $ | 3,341,250 | (7.9 | )% | $ | 3,235,455 | $ | 3,320,559 | (2.6 | )% | ||||||||||||||||
Average Investment Securities |
209,021 | 179,129 | 16.7 | % | 244,027 | (14.3 | )% | 190,243 | 294,130 | (35.3 | )% | |||||||||||||||||||||
Average Interest-Earning Assets |
3,552,698 | 3,796,039 | (6.4 | )% | 3,630,755 | (2.1 | )% | 3,718,837 | 3,659,255 | 1.6 | % | |||||||||||||||||||||
Average Total Assets |
3,672,253 | 3,897,158 | (5.8 | )% | 3,789,614 | (3.1 | )% | 3,842,266 | 3,892,197 | (1.3 | )% | |||||||||||||||||||||
Average Deposits |
3,100,419 | 3,223,309 | (3.8 | )% | 2,895,746 | 7.1 | % | 3,174,880 | 2,924,416 | 8.6 | % | |||||||||||||||||||||
Average Borrowings |
297,455 | 386,477 | (23.0 | )% | 590,401 | (49.6 | )% | 374,139 | 588,267 | (36.4 | )% | |||||||||||||||||||||
Average Interest-Bearing Liabilities |
2,844,821 | 3,083,774 | (7.7 | )% | 2,835,917 | 0.3 | % | 3,013,651 | 2,861,288 | 5.3 | % | |||||||||||||||||||||
Average Stockholders Equity |
232,136 | 240,207 | (3.4 | )% | 267,433 | (13.2 | )% | 249,742 | 340,894 | (26.7 | )% | |||||||||||||||||||||
Average Tangible Equity |
228,169 | 235,850 | (3.3 | )% | 261,751 | (12.8 | )% | 245,377 | 263,870 | (7.0 | )% | |||||||||||||||||||||
PERFORMANCE RATIOS (Annualized) : |
||||||||||||||||||||||||||||||||
Return on Average Assets |
(6.45 | )% | (0.98 | )% | 0.46 | % | (3.01 | )% | (3.37 | )% | ||||||||||||||||||||||
Return on Average Stockholders Equity |
(101.97 | )% | (15.92 | )% | 6.47 | % | (46.25 | )% | (38.51 | )% | ||||||||||||||||||||||
Return on Average Tangible Equity |
(103.75 | )% | (16.22 | )% | 6.61 | % | (47.08 | )% | (49.75 | )% | ||||||||||||||||||||||
Efficiency Ratio |
68.21 | % | 82.85 | % | 54.33 | % | 69.38 | % | 134.73 | % | ||||||||||||||||||||||
Net Interest Spread (1) |
2.47 | % | 1.88 | % | 3.21 | % | 2.08 | % | 3.02 | % | ||||||||||||||||||||||
Net Interest Margin (1) |
3.00 | % | 2.48 | % | 3.94 | % | 2.65 | % | 3.83 | % | ||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES: |
||||||||||||||||||||||||||||||||
Balance at Beginning of Period |
$ | 105,268 | $ | 104,943 | 0.3 | % | $ | 62,977 | 67.2 | % | $ | 70,986 | $ | 43,611 | 62.8 | % | ||||||||||||||||
Provision Charged to Operating Expense |
49,375 | 23,922 | 106.4 | % | 12,802 | 285.7 | % | 119,067 | 47,685 | 149.7 | % | |||||||||||||||||||||
Charge-Offs, Net of Recoveries |
(29,875 | ) | (23,597 | ) | 26.6 | % | (11,831 | ) | 152.5 | % | (65,285 | ) | (27,348 | ) | 138.7 | % | ||||||||||||||||
Balance at End of Period |
$ | 124,768 | $ | 105,268 | 18.5 | % | $ | 63,948 | 95.1 | % | $ | 124,768 | $ | 63,948 | 95.1 | % | ||||||||||||||||
Allowance for Loan Losses to Total Gross Loans |
4.19 | % | 3.33 | % | 1.91 | % | 4.19 | % | 1.91 | % | ||||||||||||||||||||||
Allowance for Loan Losses to Total Non-Performing Loans |
71.53 | % | 62.92 | % | 57.16 | % | 71.53 | % | 57.16 | % | ||||||||||||||||||||||
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS: |
||||||||||||||||||||||||||||||||
Balance at Beginning of Period |
$ | 4,291 | $ | 4,279 | 0.3 | % | $ | 3,932 | 9.1 | % | $ | 4,096 | $ | 1,765 | 132.1 | % | ||||||||||||||||
Provision Charged to Operating Expense |
125 | 12 | 941.7 | % | 374 | 151.8 | % | 320 | 2,541 | (87.4 | )% | |||||||||||||||||||||
Balance at End of Period |
$ | 4,416 | $ | 4,291 | 2.9 | % | $ | 4,306 | 2.6 | % | $ | 4,416 | $ | 4,306 | 2.6 | % | ||||||||||||||||
(1) | Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate. |
- 9 -
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED) (Continued)
(Dollars in Thousands)
SELECTED FINANCIAL DATA (UNAUDITED) (Continued)
(Dollars in Thousands)
Sept. 30, | Dec. 31, | % | Sept. 30, | % | ||||||||||||||||
2009 | 2008 | Change | 2008 | Change | ||||||||||||||||
NON-PERFORMING ASSETS: |
||||||||||||||||||||
Non-Accrual Loans |
$ | 174,363 | $ | 120,823 | 44.3 | % | $ | 111,335 | 56.6 | % | ||||||||||
Loans 90 Days or More Past Due and Still Accruing |
64 | 1,075 | (94.0 | )% | 535 | (88.0 | )% | |||||||||||||
Total Non-Performing Loans |
174,427 | 121,898 | 43.1 | % | 111,870 | 55.9 | % | |||||||||||||
Other Real Estate Owned, Net |
27,140 | 823 | 3,197.7 | % | 2,988 | 808.3 | % | |||||||||||||
Total Non-Performing Assets |
$ | 201,567 | $ | 122,721 | 64.2 | % | $ | 114,858 | 75.5 | % | ||||||||||
Total Non-Performing Loans/Total Gross Loans |
5.85 | % | 3.62 | % | 3.34 | % | ||||||||||||||
Total Non-Performing Assets/Total Assets |
5.83 | % | 3.17 | % | 3.05 | % | ||||||||||||||
Total Non-Performing Assets/Allowance for Loan Losses |
161.6 | % | 172.9 | % | 179.6 | % | ||||||||||||||
DELINQUENT LOANS |
$ | 151,047 | $ | 128,469 | 17.6 | % | $ | 102,917 | 46.8 | % | ||||||||||
Delinquent Loans/Total Gross Loans |
5.07 | % | 3.82 | % | 3.08 | % | ||||||||||||||
LOAN PORTFOLIO: |
||||||||||||||||||||
Real Estate Loans |
$ | 1,086,735 | $ | 1,180,114 | (7.9 | )% | $ | 1,166,436 | (6.8 | )% | ||||||||||
Commercial and Industrial Loans |
1,824,042 | 2,099,732 | (13.1 | )% | 2,096,222 | (13.0 | )% | |||||||||||||
Consumer Loans |
68,537 | 83,525 | (17.9 | )% | 84,031 | (18.4 | )% | |||||||||||||
Total Gross Loans |
2,979,314 | 3,363,371 | (11.4 | )% | 3,346,689 | (11.0 | )% | |||||||||||||
Deferred Loan Fees |
(1,810 | ) | (1,260 | ) | 43.7 | % | (1,640 | ) | 10.4 | % | ||||||||||
Gross Loans, Net of Deferred Loan Fees |
2,977,504 | 3,362,111 | (11.4 | )% | 3,345,049 | (11.0 | )% | |||||||||||||
Allowance for Loan Losses |
(124,768 | ) | (70,986 | ) | 75.8 | % | (63,948 | ) | 95.1 | % | ||||||||||
Loans Receivable, Net |
$ | 2,852,736 | $ | 3,291,125 | (13.3 | )% | $ | 3,281,101 | (13.1 | )% | ||||||||||
LOAN MIX: |
||||||||||||||||||||
Real Estate Loans |
36.5 | % | 35.1 | % | 34.9 | % | ||||||||||||||
Commercial and Industrial Loans |
61.2 | % | 62.4 | % | 62.6 | % | ||||||||||||||
Consumer Loans |
2.3 | % | 2.5 | % | 2.5 | % | ||||||||||||||
Total Gross Loans |
100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
DEPOSIT PORTFOLIO: |
||||||||||||||||||||
Demand Noninterest-Bearing |
$ | 561,548 | $ | 536,944 | 4.6 | % | $ | 634,593 | (11.5 | )% | ||||||||||
Savings |
98,019 | 81,869 | 19.7 | % | 86,157 | 13.8 | % | |||||||||||||
Money Market Checking and NOW Accounts |
723,585 | 370,401 | 95.4 | % | 597,065 | 21.2 | % | |||||||||||||
Time Deposits of $100,000 or More |
845,318 | 849,800 | (0.5 | )% | 863,034 | (2.1 | )% | |||||||||||||
Other Time Deposits |
763,390 | 1,231,066 | (38.0 | )% | 618,528 | 23.4 | % | |||||||||||||
Total Deposits |
$ | 2,991,860 | $ | 3,070,080 | (2.5 | )% | $ | 2,799,377 | 6.9 | % | ||||||||||
DEPOSIT MIX: |
||||||||||||||||||||
Demand Noninterest-Bearing |
18.8 | % | 17.5 | % | 22.7 | % | ||||||||||||||
Savings |
3.3 | % | 2.7 | % | 3.1 | % | ||||||||||||||
Money Market Checking and NOW Accounts |
24.2 | % | 12.1 | % | 21.3 | % | ||||||||||||||
Time Deposits of $100,000 or More |
28.3 | % | 27.7 | % | 30.8 | % | ||||||||||||||
Other Time Deposits |
25.4 | % | 40.0 | % | 22.1 | % | ||||||||||||||
Total Deposits |
100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
CAPITAL RATIOS (Bank Only) : |
||||||||||||||||||||
Total Risk-Based |
9.69 | % | 10.71 | % | 10.84 | % | ||||||||||||||
Tier 1 Risk-Based |
8.40 | % | 9.44 | % | 9.57 | % | ||||||||||||||
Tier 1 Leverage |
7.05 | % | 8.85 | % | 8.94 | % |
- 10 -
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID (UNAUDITED)
(Dollars in Thousands)
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID (UNAUDITED)
(Dollars in Thousands)
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2009 | June 30, 2009 | September 30, 2008 | September 30, 2009 | September 30, 2008 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||||||||||||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||||||||||||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||||||||||||||||||||||||||||
INTEREST-EARNING ASSETS |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Loans: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Property |
$ | 887,028 | $ | 12,051 | 5.39 | % | $ | 914,802 | $ | 13,041 | 5.72 | % | $ | 867,684 | $ | 14,604 | 6.70 | % | $ | 905,386 | $ | 38,029 | 5.62 | % | $ | 821,097 | $ | 42,894 | 6.98 | % | ||||||||||||||||||||||||||||||
Construction |
138,340 | 1,464 | 4.20 | % | 178,456 | 1,594 | 3.58 | % | 199,969 | 2,539 | 5.05 | % | 165,455 | 4,605 | 3.72 | % | 208,519 | 8,081 | 5.18 | % | ||||||||||||||||||||||||||||||||||||||||
Residential Property |
83,387 | 1,050 | 5.00 | % | 86,913 | 1,119 | 5.16 | % | 90,739 | 1,209 | 5.30 | % | 86,904 | 3,332 | 5.13 | % | 90,069 | 3,584 | 5.32 | % | ||||||||||||||||||||||||||||||||||||||||
Total Real Estate Loans |
1,108,755 | 14,565 | 5.21 | % | 1,180,171 | 15,754 | 5.35 | % | 1,158,392 | 18,352 | 6.30 | % | 1,157,745 | 45,966 | 5.31 | % | 1,119,685 | 54,559 | 6.51 | % | ||||||||||||||||||||||||||||||||||||||||
Commercial and Industrial Loans |
1,897,321 | 26,863 | 5.62 | % | 2,025,414 | 27,774 | 5.50 | % | 2,099,708 | 36,128 | 6.85 | % | 2,001,546 | 82,874 | 5.54 | % | 2,114,974 | 112,416 | 7.10 | % | ||||||||||||||||||||||||||||||||||||||||
Consumer Loans |
73,670 | 1,084 | 5.84 | % | 77,989 | 1,108 | 5.70 | % | 85,021 | 1,495 | 7.00 | % | 77,606 | 3,345 | 5.76 | % | 87,920 | 4,789 | 7.28 | % | ||||||||||||||||||||||||||||||||||||||||
Total Gross Loans |
3,079,746 | 42,512 | 5.48 | % | 3,283,574 | 44,636 | 5.45 | % | 3,343,121 | 55,975 | 6.66 | % | 3,236,897 | 132,185 | 5.46 | % | 3,322,579 | 171,764 | 6.91 | % | ||||||||||||||||||||||||||||||||||||||||
Prepayment Penalty Income |
| 193 | | | 82 | | | 159 | | | 323 | | | 873 | | |||||||||||||||||||||||||||||||||||||||||||||
Unearned Income on Loans, Net of Costs |
(1,642 | ) | | | (1,422 | ) | | | (1,871 | ) | | | (1,442 | ) | | | (2,020 | ) | | | ||||||||||||||||||||||||||||||||||||||||
Gross Loans, Net |
3,078,104 | 42,705 | 5.50 | % | 3,282,152 | 44,718 | 5.46 | % | 3,341,250 | 56,134 | 6.68 | % | 3,235,455 | 132,508 | 5.48 | % | 3,320,559 | 172,637 | 6.94 | % | ||||||||||||||||||||||||||||||||||||||||
Investment Securities: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal Bonds(1) |
58,179 | 933 | 6.41 | % | 59,222 | 956 | 6.46 | % | 60,979 | 1,000 | 6.56 | % | 58,760 | 2,878 | 6.53 | % | 65,329 | 3,186 | 6.50 | % | ||||||||||||||||||||||||||||||||||||||||
U.S. Government Agency Securities |
37,969 | 431 | 4.54 | % | 13,177 | 144 | 4.37 | % | 46,777 | 483 | 4.13 | % | 20,345 | 671 | 4.40 | % | 80,120 | 2,612 | 4.35 | % | ||||||||||||||||||||||||||||||||||||||||
Mortgage-Backed Securities |
82,429 | 807 | 3.92 | % | 74,939 | 880 | 4.70 | % | 83,460 | 994 | 4.76 | % | 77,720 | 2,582 | 4.43 | % | 90,652 | 3,246 | 4.77 | % | ||||||||||||||||||||||||||||||||||||||||
Collateralized Mortgage Obligations |
17,066 | 173 | 4.05 | % | 20,713 | 215 | 4.15 | % | 41,266 | 441 | 4.27 | % | 23,742 | 736 | 4.13 | % | 45,853 | 1,462 | 4.25 | % | ||||||||||||||||||||||||||||||||||||||||
Corporate Bonds |
401 | | 0.00 | % | 233 | 22 | 37.77 | % | 7,751 | 89 | 4.59 | % | 265 | | 0.00 | % | 8,344 | 287 | 4.59 | % | ||||||||||||||||||||||||||||||||||||||||
Other Securities |
12,977 | 130 | 4.01 | % | 10,845 | 109 | 4.02 | % | 3,794 | 42 | 4.43 | % | 9,411 | 272 | 3.85 | % | 3,832 | 136 | 4.73 | % | ||||||||||||||||||||||||||||||||||||||||
Total Investment Securities (1) |
209,021 | 2,474 | 4.73 | % | 179,129 | 2,326 | 5.19 | % | 244,027 | 3,049 | 5.00 | % | 190,243 | 7,139 | 5.00 | % | 294,130 | 10,929 | 4.95 | % | ||||||||||||||||||||||||||||||||||||||||
Other Interest-Earning Assets: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Securities |
41,741 | 214 | 2.05 | % | 41,532 | 153 | 1.47 | % | 39,929 | 581 | 5.82 | % | 41,667 | 520 | 1.66 | % | 37,160 | 1,481 | 5.31 | % | ||||||||||||||||||||||||||||||||||||||||
Federal Funds Sold and Securities Purchased
Under Resale Agreements |
56,568 | 67 | 0.47 | % | 135,362 | 112 | 0.33 | % | 4,797 | 23 | 1.92 | % | 95,365 | 261 | 0.36 | % | 7,096 | 137 | 2.57 | % | ||||||||||||||||||||||||||||||||||||||||
Term Federal Funds Sold |
90,239 | 293 | 1.30 | % | 147,692 | 695 | 1.88 | % | | | | 125,249 | 1,688 | 1.80 | % | | | | ||||||||||||||||||||||||||||||||||||||||||
Interest-Earning Deposits |
77,025 | 68 | 0.35 | % | 10,172 | 11 | 0.43 | % | 752 | 4 | 2.13 | % | 30,858 | 81 | 0.35 | % | 310 | 5 | 2.15 | % | ||||||||||||||||||||||||||||||||||||||||
Total Other Interest-Earning Assets |
265,573 | 642 | 0.97 | % | 334,758 | 971 | 1.16 | % | 45,478 | 608 | 5.35 | % | 293,139 | 2,550 | 1.16 | % | 44,566 | 1,623 | 4.86 | % | ||||||||||||||||||||||||||||||||||||||||
TOTAL INTEREST-EARNING ASSETS (1) |
$ | 3,552,698 | $ | 45,821 | 5.12 | % | $ | 3,796,039 | $ | 48,015 | 5.07 | % | $ | 3,630,755 | $ | 59,791 | 6.55 | % | $ | 3,718,837 | $ | 142,197 | 5.11 | % | $ | 3,659,255 | $ | 185,189 | 6.76 | % | ||||||||||||||||||||||||||||||
INTEREST-BEARING LIABILITIES |
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Interest-Bearing Deposits: |
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Savings |
$ | 93,404 | $ | 585 | 2.48 | % | $ | 84,588 | $ | 527 | 2.50 | % | $ | 91,465 | $ | 533 | 2.32 | % | $ | 86,715 | $ | 1,617 | 2.49 | % | $ | 91,910 | $ | 1,587 | 2.31 | % | ||||||||||||||||||||||||||||||
Money Market Checking and NOW Accounts |
629,124 | 2,998 | 1.89 | % | 319,319 | 1,426 | 1.79 | % | 693,718 | 5,579 | 3.20 | % | 431,646 | 6,278 | 1.94 | % | 656,625 | 15,946 | 3.24 | % | ||||||||||||||||||||||||||||||||||||||||
Time Deposits of $100,000 or More |
983,341 | 7,447 | 3.00 | % | 1,313,683 | 12,108 | 3.70 | % | 973,752 | 8,709 | 3.56 | % | 1,124,876 | 29,877 | 3.55 | % | 1,143,975 | 35,436 | 4.14 | % | ||||||||||||||||||||||||||||||||||||||||
Other Time Deposits |
841,497 | 6,335 | 2.99 | % | 979,707 | 8,625 | 3.53 | % | 486,581 | 4,544 | 3.72 | % | 996,275 | 25,064 | 3.36 | % | 380,511 | 11,730 | 4.12 | % | ||||||||||||||||||||||||||||||||||||||||
Total Interest-Bearing Deposits |
2,547,366 | 17,365 | 2.70 | % | 2,697,297 | 22,686 | 3.37 | % | 2,245,516 | 19,365 | 3.43 | % | 2,639,512 | 62,836 | 3.18 | % | 2,273,021 | 64,699 | 3.80 | % | ||||||||||||||||||||||||||||||||||||||||
Borrowings: |
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FHLB Advances |
213,583 | 865 | 1.61 | % | 302,220 | 1,010 | 1.34 | % | 506,981 | 3,324 | 2.61 | % | 290,142 | 2,987 | 1.38 | % | 492,434 | 11,406 | 3.09 | % | ||||||||||||||||||||||||||||||||||||||||
Other Borrowings |
1,466 | | 0.00 | % | 1,851 | 2 | 0.43 | % | 1,014 | 5 | 1.96 | % | 1,591 | 2 | 0.17 | % | 13,427 | 344 | 3.42 | % | ||||||||||||||||||||||||||||||||||||||||
Junior Subordinated Debentures |
82,406 | 747 | 3.60 | % | 82,406 | 846 | 4.12 | % | 82,406 | 1,150 | 5.55 | % | 82,406 | 2,581 | 4.19 | % | 82,406 | 3,763 | 6.10 | % | ||||||||||||||||||||||||||||||||||||||||
Total Borrowings |
297,455 | 1,612 | 2.15 | % | 386,477 | 1,858 | 1.93 | % | 590,401 | 4,479 | 3.02 | % | 374,139 | 5,570 | 1.99 | % | 588,267 | 15,513 | 3.52 | % | ||||||||||||||||||||||||||||||||||||||||
TOTAL INTEREST-BEARING LIABILITIES |
$ | 2,844,821 | $ | 18,977 | 2.65 | % | $ | 3,083,774 | $ | 24,544 | 3.19 | % | $ | 2,835,917 | $ | 23,844 | 3.34 | % | $ | 3,013,651 | $ | 68,406 | 3.03 | % | $ | 2,861,288 | $ | 80,212 | 3.74 | % | ||||||||||||||||||||||||||||||
NET INTEREST INCOME (1) |
$ | 26,844 | $ | 23,471 | $ | 35,947 | $ | 73,791 | $ | 104,977 | ||||||||||||||||||||||||||||||||||||||||||||||||||
NET INTEREST SPREAD (1) |
2.47 | % | 1.88 | % | 3.21 | % | 2.08 | % | 3.02 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
NET
INTEREST MARGIN (1) |
3.00 | % | 2.48 | % | 3.94 | % | 2.65 | % | 3.79 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
(1) | Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate. |
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