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EX - 99.1 2 exh_991.htm EXHIBIT 99.1 EXHIBIT 99.1 Hanmi Reports Second Quarter 2021 Results 2021 Second Quarter Highlights : • Second quarter net income of $ 22.1 million , or $ 0.72 per diluted share , up from $ 16.7 million , or $ 0.54 per diluted share from the prior quarter and up from $ 9.2 million or $ 0.30 per diluted share for the same quarter a year ago . • Loans receivable of $ 4.82 billion , were unchanged from the prior quarter ; up 2.5 % when excluding Paycheck Protection Program ( “ PPP ” ) loans . Strong production of $ 465.6 million was offset by payoffs / paydowns and forgiveness on first draw PPP loans . . Deposits of $ 5.63 billion , up 2.2 % from the first quarter driven by an 8.3 % increase in noninterest - bearing demand deposits ; cost of interest - bearing deposits fell 12 basis points from the prior quarter . • A $ 3.3 million recovery of credit loss expense for the second quarter resulted in an allowance for credit losses of 1.73 % of loans at June 30 , 2021 , or 1.78 % excluding PPP loans . • Nonaccrual loans declined 28.1 % from the end of the first quarter principally from the return - to - accrual status of two film tax - credit loans aggregating $ 12.4 million ; classified loans were down 25.3 % from the prior quarter due to upgrades to special mention , payoffs and paydowns . • Second quarter net interest income was $ 49.6 million , up 7.8 % from the first quarter and included $ 2.7 million from PPP loans and $ 0.9 million of interest income from the return - to - accrual status of the two film tax - credit loans . • Net interest margin was 3.19 % for the second quarter , or 3.12 % excluding interest from PPP loans . • Second quarter noninterest income was $ 8.9 million , down 9.4 % from the prior quarter as lower gains on sale of second - draw PPP loans was offset partially by higher gains on sale of non - PPP SBA 7 ( a ) loans . • Noninterest expense was $ 30.8 million , up 4.2 % from the previous quarter , which included $ 1.4 million of cost capitalization on second - draw PPP loans ; Efficiency ratio for the second quarter was 52.66 % ( 52.86 % excluding securities gains and second draw PPP loan gains and origination costs ) compared with 52.92 % for the prior quarter . • Hanmi remained well capitalized with a Total risk - based capital ratio of 15.41 % and a Common equity Tier 1 capital ratio of 11.76 % at June 30 , 2021 ; tangible common equity to tangible assets ratio was 9.01 % ( 9.23 % excluding PPP loans ) at the end of the second quarter . For more information about Hanmi , please see the Q2 2021 Investor Update ( and Supplemental Financial Information ) , which is available on the Bank's website at www.hanmi.com and via a current report on Form 8 - K on the website of the Securities and Exchange Commission at www.sec.gov . Also , please refer to “ Non- GAAP Financial Measures ” herein for further details of the presentation of certain non - GAAP financial measures . LOS ANGELES , July 27 , 2021 ( GLOBE NEWSWIRE ) -- Hanmi Financial Corporation ( NASDAQ : HAFC , or “ Hanmi ” ) , the parent company of Hanmi Bank ( the “ Bank ” ) , today reported net income for the 2021 second quarter of $ 22.1 million , or $ 0.72 per diluted share , compared with $ 16.7 million , or $ 0.54 per diluted share for the first quarter and $ 9.2 million , or $ 0.30 per diluted share for the 2020 second quarter . Bonnie Lee , President and Chief Executive Officer , said , “ Hanmi's record earnings in the second quarter were driven by excellent loan and lease production , solid growth in deposits and improving asset quality . New loan and lease production in the quarter increased to $ 465.6 million , up nearly 34 % from the prior quarter . During the quarter we benefitted from significant lending activity from our new residential mortgage platform , along with growth in equipment leases , which returned to pre - pandemic levels . SBA loan production , excluding PPP loans , also expanded nicely quarter - over - quarter . The strong loan and lease production was partially offset by loan payoffs . Excluding PPP loans , loans receivable of $ 4.82 billion were up 2.5 % from the prior quarter . Deposit gathering activities were also quite successful and were led by ongoing growth in low - cost noninterest - bearing demand deposits . " Ms. Lee continued , “ Overall , I remain pleased with our efforts to manage - down nonaccrual loans , which declined nearly 30 % from the prior quarter . We also benefitted from a $ 3.3 million recovery of credit loss expense in the quarter . At the bottom line , net income grew significantly to $ 22.1 million , or $ 0.72 per diluted share , and was an all - time record . "