x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Fiscal Year Ended December 31, 2010 | ||||
or | ||||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||
For the Transition Period FromTo |
Delaware | 95-4788120 | |
(I.R.S. Employer Identification No.) | ||
3660 Wilshire Boulevard, Penthouse Suite A Los Angeles, California | 90010 | |
(Address of Principal Executive Offices) | (Zip Code) |
Title of Each Class | Name of Each Exchange on Which Registered | |
Common Stock, $0.001 Par Value | NASDAQ “Global Select Market” | |
Large | ||||||||
Accelerated filer | x | |||||||
Non-accelerated filer | o | (Do | Smaller reporting company | o |
• | our ability to continue as going concern; | |
• | closure of Hanmi Bank and appointment of the Federal Deposit Insurance Corporation as receiver; | |
• | failure to complete the transaction contemplated by the securities purchase agreement with Woori Finance Holdings Co., Ltd.; | |
• | failure to raise enough capital to support our operations or meet our regulatory requirements; | |
• | failure to maintain adequate levels of capital to support our operations; | |
• | a significant number of customers failing to perform under their loans and other terms of credit agreements; | |
• | our compliance with and the effect of regulatory orders we have entered into and potential future supervisory or governmental actions against us or Hanmi Bank; | |
• | fluctuations in interest rates and a decline in the level of our interest rate spread; | |
• | failure to attract or retain deposits and restrictions on taking brokered deposits; | |
• | sources of liquidity available to us and to Hanmi Bank becoming limited or our potential inability to access sufficient sources of liquidity when needed or the requirement that we obtain government waivers to do so; | |
• | adverse changes in domestic or global financial markets, economic conditions or business conditions; | |
• | regulatory restrictions on Hanmi Bank’s ability to pay dividends to us and on our ability to make payments on our obligations; | |
• | significant reliance on loans secured by real estate and the associated vulnerability to downturns in the local real estate market, natural disasters and other variables impacting the value of real estate; | |
• | failure to attract or retain our key employees; |
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• | 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; | |
• | volatility and disruption in financial, credit and securities markets, and the price of our common stock; | |
• | deterioration in financial markets that may result in impairment charges relating to our securities portfolio; | |
• | competition in our primary market areas;. | |
• | demographic changes in our primary market areas; | |
• | global hostilities, acts of war or terrorism, including but not limited to, conflict between North and South Korea; | |
• | the effects of climate change and attendant regulation on our customers and borrowers; | |
• | the effects of litigation against us; | |
• | significant government regulations, legislation and potential changes thereto; and | |
• | other risks described herein and in the other reports and statements we file with the SEC. |
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ITEM 1. | BUSINESS |
Year Ended December 31, | ||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Interest and Fees on Loans | $ | 137,328 | 80.8 | % | $ | 173,318 | 80.1 | % | $ | 223,942 | 82.6 | % | ||||||||||||
Interest and Dividends on Investments | 6,631 | 3.9 | % | 8,634 | 4.0 | % | 14,022 | 5.2 | % | |||||||||||||||
Other Interest Income | 553 | 0.3 | % | 2,195 | 1.0 | % | 219 | 0.1 | % | |||||||||||||||
Service Charges on Deposit Accounts | 14,049 | 8.3 | % | 17,054 | 7.9 | % | 18,463 | 6.8 | % | |||||||||||||||
Other Non-Interest Income | 11,357 | 6.7 | % | 15,056 | 7.0 | % | 14,391 | 5.3 | % | |||||||||||||||
Total Revenues | $ | 169,918 | 100.0 | % | $ | 216,257 | 100.0 | % | $ | 271,037 | 100.0 | % | ||||||||||||
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Ratio of Tangible Shareholder’s | ||
Date | Equity to Total Tangible Assets | |
By July 31, 2010 | Not Less Than 9.0 Percent | |
From December 31, 2010 and Until the Final Order is Terminated | Not Less Than 9.5 Percent |
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Year Ended December 31, | ||||||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Interest and Fees on Loans | $ | 173,318 | 80.1 | % | $ | 223,942 | 82.6 | % | $ | 261,992 | 81.6 | % | ||||||||||||
Interest and Dividends on Investments | 8,634 | 4.0 | % | 14,022 | 5.2 | % | 17,867 | 5.6 | % | |||||||||||||||
Other Interest Income | 2,195 | 1.0 | % | 219 | 0.1 | % | 1,037 | 0.3 | % | |||||||||||||||
Service Charges on Deposit Accounts | 17,054 | 7.9 | % | 18,463 | 6.8 | % | 18,061 | 5.6 | % | |||||||||||||||
Other Non-Interest Income | 15,056 | 7.0 | % | 14,391 | 5.3 | % | 21,945 | 6.9 | % | |||||||||||||||
Total Revenues | $ | 216,257 | 100.0 | % | $ | 271,037 | 100.0 | % | $ | 320,902 | 100.0 | % | ||||||||||||
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• | maturities of two years or less; | |
• | a floating rate of interest based on the Bank Prime Rate or the WSJ Prime Rate; | |
• | minimum cash equity of 35 percent of project cost; | |
• | reserve of anticipated interest costs during construction or advance of fees; |
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• | first lien position on the underlying real estate; | |
• | loan-to-value ratios at time of origination generally not exceeding 65 percent; and | |
• | recourse against the borrower or a guarantor in the event of default. |
• | the uncertain value of the project prior to completion; | |
• | the inherent uncertainty in estimating construction costs, which are often beyond the borrower’s control; | |
• | construction delays and cost overruns; | |
• | possible difficulties encountered in connection with municipal or other governmental regulations during construction; and | |
• | the difficulty in accurately evaluating the market value of the completed project. |
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(i) | the creation of a Financial Services Oversight Counsel to identify emerging systemic risks and improve interagency cooperation; | |
(ii) | expanded FDIC resolution authority to conduct the orderly liquidation of certain systemically significant non-bank financial companies in addition to depository institutions; | |
(iii) | the establishment of strengthened capital and liquidity requirements for banks and bank holding companies, including minimum leverage and risk-based capital requirements no less than the strictest requirements in effect for depository institutions as of the date of enactment; | |
(iv) | the requirement by statute that bank holding companies serve as a source of financial strength for their depository institution subsidiaries; | |
(v) | enhanced regulation of financial markets, including the derivative and securitization markets, and the elimination of certain proprietary trading activities by banks; | |
(vi) | the termination of investments by the U.S. Treasury under TARP; | |
(vi) | the elimination and phase out of trust preferred securities (TRUPS) from Tier 1 capital with certain exceptions; |
(vii) | a permanent increase of the previously implemented temporary increase of FDIC deposit insurance to $250,000 and an extension of federal deposit coverage until January 1, 2013 for the full net amount held by depositors in non-interesting bearing transaction accounts; |
(ix) | authorization for financial institutions to pay interest on business checking accounts; | |
(x) | changes in the calculation of FDIC deposit insurance assessments, such that the assessment base will no longer be the institution’s deposit base, but instead, will be its average consolidated total assets less its average tangible equity and an increase in the minimum insurance ratio for the Deposit Insurance Fund (“DIF”) from 1.15% to 1.35%; | |
(xi) | the elimination of remaining barriers to de novo interstate branching by banks; |
(xii) | expanded restrictions on transactions with affiliates and insiders under Section 23A and 23B of the Federal Reserve Act and lending limits for derivative transactions, repurchase agreements and securities lending and borrowing transactions; | |
(xiii) | the transfer of oversight of federally chartered thrift institutions to the Office of the Comptroller of the Currency and state chartered savings banks to the FDIC, and the elimination of the Office of Thrift Supervision; |
(xiv) | provisions that affect corporate governance and executive compensation at most United States publicly traded companies, including financial institutions, including (1) stockholder advisory votes on executive compensation, (2) executive compensation “clawback” requirements for companies listed on national securities exchanges in the event of materially inaccurate statements of earnings, revenues, gains or other criteria, (3) enhanced independence requirements for compensation committee members, and (4) authority for the SEC to adopt proxy access rules which would permit stockholders of publicly traded companies to nominate candidates for election as director and have those nominees included in a company’s proxy statement; and |
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(xv) | the creation of a Consumer Financial Protection Bureau, which is authorized to promulgate consumer protection regulations relating to bank and non-bank financial products and examine and enforce these regulations on banks with more than $10 billion in assets. |
- | Risk Based Capital Guidelines – Market Risk (Section 171) – Final Rule | |
- | ||
Implement Changes to | ||
Designated Reserve Ratio and Restoration Plan for the Deposit Insurance Fund (Sections 332 and 334) – Final Rule | ||
$250,000 Deposit Insurance Coverage Limit (Section 335) – Final Rule | ||
Unlimited coverage for Non-Interest Bearing Deposits (Section 343) – Final Rule | ||
- | Incentive-based Compensation (Section 956) – FDIC NPR. |
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• | require periodic reports and such additional information as the FRB may require. | |
• | require | |
• | require that bank holding companies serve as a source of financial and managerial strength to subsidiary banks and commit resources as necessary to support each subsidiary bank. | |
• | restrict the ability of bank holding companies to obtain dividends or other distributions from their subsidiary banks. | |
• | terminate an activity or terminate control of or liquidate or divest certain subsidiaries, affiliates or investments if the FRB believes the activity or the control of the subsidiary or affiliate constitutes a significant risk to the financial safety, soundness or stability of any bank subsidiary. | |
• | take formal or informal enforcement action or issue other supervisory directives and assess civil money penalties for non-compliance under certain circumstances. | |
• | require the prior approval of senior executive officers or director changes and golden parachute payments, including change in control agreements or new employment agreements with payment terms which are contingent upon termination. | |
• | regulate provisions of certain bank holding company debt, including the authority to impose interest ceilings and reserve requirements on such debt and require prior approval to purchase or redeem our securities in certain situations. |
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• | limit or prohibit and require FRB prior approval of the payment of dividends. | |
• | require financial holding companies to divest non-banking activities or subsidiary banks if they fail to meet certain financial holding company standards. | |
• | approve acquisitions of more than 5% of the voting shares of another bank and mergers with other banks or savings institutions and consider certain competitive, management, financial and other factors in granting these approvals. Similar California and other state banking agency approvals may also be required. |
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Regulatory Capital Guidelines | Actual | |||||||||||||||
Adequately | Well | Hanmi | Hanmi | |||||||||||||
Capitalized | Capitalized | Bank | Financial | |||||||||||||
Total Risk-Based Capital Ratio | 8.00 | % | 10.00 | % | 12.22 | % | 12.32 | % | ||||||||
Tier 1 Risk-Based Capital Ratio | 4.00 | % | 6.00 | % | 10.91 | % | 10.09 | % | ||||||||
Tier 1 Leverage Ratio | 4.00 | % | 5.00 | % | 8.55 | % | 7.90 | % |
• | “Tier I capital” currently includes common equity and trust preferred securities, subject to certain criteria and quantitative limits. The capital received from trust preferred offerings also qualifies as Tier I capital, subject to the new provisions of Dodd-Frank. Under Dodd-Frank, depository institution holding companies with more than $15 billion in total consolidated assets as of December 31, 2009, |
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will no longer be able to include trust preferred securities as Tier 1 regulatory capital after of the end of a3-year phase-out period beginning 2013, and would need to replace any outstanding trust preferred securities issued prior to May 19, 2010 with qualifying Tier 1 regulatory capital during the phase-out period. For institutions with less than $15 billion in total consolidated assets, existing trust preferred capital will still qualify as Tier 1. New issues by small bank holding companies with less than $500 million assets could still qualify as Tier 1, however the market for any new trust preferred capital raises is uncertain. |
• | “Tier II capital” includes hybrid capital instruments, other qualifying debt instruments, a limited amount of the allowance for loan and lease losses, and a limited amount of unrealized holding gains on equity securities. Following the phase-out period under Dodd-Frank, trust preferred securities will be treated as Tier II capital. The maximum amount of supplemental capital elements that qualifies as Tier 2 capital is limited to 100 percent of Tier 1 capital. | |
• | “Tier III capital” consists of qualifying unsecured debt. The sum of Tier II and Tier III capital may not exceed the amount of Tier I capital. |
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• | require affirmative action to correct any conditions resulting from any violation or practice; | |
• | direct an increase in capital or establish specific minimum capital ratios; | |
• | restrict the Bank’s growth geographically, by products and services or by mergers and acquisitions; | |
• | enter into informal non-public or formal public memoranda of understanding or written agreements; enjoin unsafe and unsound practices and issue cease and desist orders to take corrective action; | |
• | remove officers and directors and assess civil monetary penalties; | |
• | terminate the Bank’s deposit insurance, which would also result in the revocation of the Bank’s license by the DFI; and | |
• | take possession and close and liquidate the Bank. |
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Regulatory Capital Guidelines | Actual | |||||||||||||||
Adequately | Well | Hanmi | Hanmi | |||||||||||||
Capitalized | Capitalized | Bank | Financial | |||||||||||||
Total Risk-Based Capital Ratio | 8.00 | % | 10.00 | % | 9.07 | % | 9.12 | % | ||||||||
Tier 1 Risk-Based Capital Ratio | 4.00 | % | 6.00 | % | 7.77 | % | 6.76 | % | ||||||||
Tier 1 Leverage Ratio | 4.00 | % | 5.00 | % | 6.69 | % | 5.82 | % |
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• | a bank or bank holding company’s executive officers, directors and principal stockholders (i.e., in most cases, those persons who own, control or have power to vote more than 10 percent of any class of voting securities); | |
• | any company controlled by any such executive officer, director or stockholder; or | |
• | any political or campaign committee controlled by such executive officer, director or principal stockholder. |
• | must comply withloan-to-one-borrower limits; | |
• | require prior full board approval when aggregate extensions of credit to the person exceed specified amounts; | |
• | must be made on substantially the same terms (including interest rates and collateral) and follow |
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credit-underwriting procedures no less stringent than those prevailing at the time for comparable transactions with non-insiders; |
• | must not involve more than the normal risk of repayment or present other unfavorable features; and | |
• | in the aggregate limit not exceed the bank’s unimpaired capital and unimpaired surplus. |
• | prevent any affiliates from borrowing from the Bank unless the loans are secured by marketable obligations of designated amounts; | |
• | limit such loans and investments to or in any affiliate individually to 10 percent of the Bank’s capital and surplus; | |
• | limit such loans and investments to all affiliates in the aggregate to 20 percent of the Bank’s capital and surplus; and | |
• | require such loans and investments to or in any affiliate to be on terms and under conditions substantially the same or at least as favorable to the Bank as those prevailing for comparable transactions with non-affiliated parties. |
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ITEM 1A. | RISK FACTORS |
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Ratio of Tangible Shareholder’s | ||
Date | Equity to Total Tangible Assets | |
By July 31, 2010 | Not Less Than 9.0 Percent | |
From December 31, 2010 and Until the Final Order is Terminated | Not Less Than 9.5 Percent |
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• | We potentially face increased regulation of our industry. Compliance with such regulation may increase our costs and limit our ability to pursue business opportunities. | ||
• | The process we use to estimate losses inherent in our credit exposure requires difficult, subjective and complex judgments, including forecasts of economic conditions and how these economic conditions |
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might impair the ability of our borrowers to repay their loans. The level of uncertainty concerning economic conditions may adversely affect the accuracy of our estimates, which may, in turn, impact the reliability of the process. |
• | We may be required to pay significantly higher | ||
• | Our liquidity could be negatively impacted by an inability to access the capital markets, unforeseen or extraordinary demands on cash, or regulatory restrictions, which could, among other things, materially and adversely affect our business, results of operations and financial condition and our ability to continue as a going concern. |
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• | problem assets and foreclosures may increase; | ||
• | demand for our products and services may decline; | ||
• | low cost or non-interest bearing deposits may decrease; and |
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• | collateral for loans made by us, especially real estate, may decline in value. |
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• | developments relating to the Woori investment; | ||
• | actual or anticipated quarterly fluctuations in our operating results and financial condition; | ||
• | changes in revenue or earnings estimates or publication of research reports and recommendations by financial analysts; | ||
• | failure to meet analysts’ revenue or earnings estimates; | ||
• | speculation in the press or investment community; | ||
• | strategic actions by us or our competitors, such as acquisitions or restructurings; | ||
• | actions by institutional stockholders; | ||
• | fluctuations in the stock price and operating results of our competitors; | ||
• | general market conditions and, in particular, developments related to market conditions for the financial services industry; | ||
• | proposed or adopted legislative or regulatory changes or developments; | ||
• | anticipated or pending investigations, proceedings or litigation that involve or affect us; or | ||
• | domestic and international economic factors unrelated to our performance. |
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ITEM 1B. | UNRESOLVED STAFF COMMENTS |
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Owned/ | ||||||
Office | Address | City/State | Leased | |||
Corporate Headquarters(1) | 3660 Wilshire Boulevard, Penthouse Suite A | Los Angeles, CA | Leased | |||
Branches: | ||||||
Beverly Hills Branch | 9300 Wilshire Boulevard, Suite 101 | Beverly Hills, CA | Leased | |||
Cerritos – Artesia Branch | 11754 East Artesia Boulevard | Artesia, CA | Leased | |||
Cerritos – South Branch | 11900 South Street, Suite 109 | Cerritos, CA | Leased | |||
Downtown – Los Angeles Branch | 950 South Los Angeles Street | Los Angeles, CA | Leased | |||
Diamond Bar Branch | 1101 Brea Canyon Road, Suite A-1 | Diamond Bar, CA | Leased | |||
Fashion District Branch | 726 East 12th Street, Suite 211 | Los Angeles, CA | Leased | |||
Fullerton – Beach Branch | 5245 Beach Boulevard | Buena Park, CA | Leased | |||
Garden Grove – Brookhurst Branch | 9820 Garden Grove Boulevard | Garden Grove, CA | Owned | |||
Garden Grove – Magnolia Branch | 9122 Garden Grove Boulevard | Garden Grove, CA | Owned | |||
Gardena Branch | 2001 West Redondo Beach Boulevard | Gardena, CA | Leased | |||
Irvine Branch | 14474 Culver Drive, Suite D | Irvine, CA | Leased | |||
Koreatown Galleria Branch | 3250 West Olympic Boulevard, Suite 200 | Los Angeles, CA | Leased | |||
Koreatown Plaza Branch | 928 South Western Avenue, Suite 260 | Los Angeles, CA | Leased | |||
Northridge Branch | 10180 Reseda Boulevard | Northridge, CA | Leased | |||
Olympic Branch(2) | 3737 West Olympic Boulevard | Los Angeles, CA | Owned | |||
Olympic – Kingsley Branch | 3099 West Olympic Boulevard | Los Angeles, CA | Owned | |||
Rancho Cucamonga Branch | 9759 Baseline Road | Rancho Cucamonga, CA | Leased | |||
Rowland Heights Branch | 18720 East Colima Road | Rowland Heights, CA | Leased | |||
San Diego Branch | 4637 Convoy Street, Suite 101 | San Diego, CA | Leased | |||
San Francisco Branch | 1469 Webster Street | San Francisco, CA | Leased | |||
Silicon Valley Branch | 2765 El Camino Real | Santa Clara, CA | Leased | |||
Torrance – Crenshaw Branch | 2370 Crenshaw Boulevard, Suite H | Torrance, CA | Leased | |||
Torrance – Del Amo Mall Branch | 21838 Hawthorne Boulevard | Torrance, CA | Leased | |||
Van Nuys Branch | 14427 Sherman Way | Van Nuys, CA | Leased | |||
Vermont Branch(3) | 933 South Vermont Avenue | Los Angeles, CA | Owned | |||
Western Branch | 120 South Western Avenue | Los Angeles, CA | Leased | |||
Wilshire – Hobart Branch | 3660 Wilshire Boulevard, Suite 103 | Los Angeles, CA | Leased | |||
Departments: | ||||||
Commercial Loan Department(1) | 3660 Wilshire Boulevard, Suite 1050 | Los Angeles, CA | Leased | |||
Consumer Loan Center(1) | 3660 Wilshire Boulevard, Suite 424 | Los Angeles, CA | Leased | |||
Los Angeles, CA | Leased | |||||
International Finance Department(1) | 933 South Vermont Avenue, 2nd Floor | Los Angeles, CA | Leased | |||
SBA Loan Center(1) | 3660 Wilshire Boulevard, Suite 116 | Los Angeles, CA | Leased | |||
LPOs and Subsidiaries: | ||||||
Northwest Region LPO(1) | 33110 Pacific Hwy South, Suite 4 | Federal Way, WA | Leased | |||
Chun-Ha/All World(1) | 12912 Brookhurst Street, Suite 480 | Garden Grove, CA | Leased | |||
Chun-Ha(1) | 3225 Wilshire Boulevard, Suite 1806 | Los Angeles, CA | Leased |
(1) | Deposits are not accepted at this facility. | |
(2) | Training Facility is also located at this facility. | |
(3) | Administrative offices are also located at this facility. |
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ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
High | Low | Cash Dividend | High | Low | Cash Dividend | |||||||||||||||||||
2010: | ||||||||||||||||||||||||
Fourth Quarter | $ | 1.28 | $ | 0.86 | — | |||||||||||||||||||
Third Quarter | $ | 1.70 | $ | 1.17 | — | |||||||||||||||||||
Second Quarter | $ | 4.26 | $ | 1.26 | — | |||||||||||||||||||
First Quarter | $ | 2.83 | $ | 1.02 | — | |||||||||||||||||||
2009: | ||||||||||||||||||||||||
Fourth Quarter | $ | 1.86 | $ | 1.10 | — | $ | 1.86 | $ | 1.10 | — | ||||||||||||||
Third Quarter | $ | 1.92 | $ | 1.22 | — | $ | 1.92 | $ | 1.22 | — | ||||||||||||||
Second Quarter | $ | 2.65 | $ | 1.21 | — | $ | 2.65 | $ | 1.21 | — | ||||||||||||||
First Quarter | $ | 3.00 | $ | 0.75 | — | $ | 3.00 | $ | 0.75 | — | ||||||||||||||
2008: | ||||||||||||||||||||||||
Fourth Quarter | $ | 5.19 | $ | 1.65 | — | |||||||||||||||||||
Third Quarter | $ | 6.77 | $ | 4.65 | — | |||||||||||||||||||
Second Quarter | $ | 7.79 | $ | 5.20 | $0.03 Per Share | |||||||||||||||||||
First Quarter | $ | 9.82 | $ | 6.80 | $0.06 Per Share |
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December 31, | ||||||||||||||||||||||||||
Index | Symbol | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | |||||||||||||||||||
Hanmi Financial | HAFC | $ | 100.00 | $ | 100.50 | $ | 128.13 | $ | 50.39 | $ | 12.57 | $ | 7.32 | |||||||||||||
Nasdaq Composite | ^IXIC | $ | 100.00 | $ | 101.37 | $ | 111.02 | $ | 121.91 | $ | 72.49 | $ | 104.30 | |||||||||||||
S&P 500 Financials | S5FINL | $ | 100.00 | $ | 106.30 | $ | 126.41 | $ | 103.47 | $ | 47.36 | $ | 55.27 | |||||||||||||
SNL Bank $1B-$5B | — | $ | 100.00 | $ | 98.29 | $ | 113.74 | $ | 82.85 | $ | 68.77 | $ | 49.26 |
December 31, | ||||||||||||||||||||||||||
Index | Symbol | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |||||||||||||||||||
Hanmi Financial | HAFC | $ | 100.00 | $ | 127.49 | $ | 49.80 | $ | 12.42 | $ | 7.24 | $ | 8.87 | |||||||||||||
Nasdaq Composite | IXIC | $ | 100.00 | $ | 109.52 | $ | 120.27 | $ | 71.51 | $ | 102.89 | $ | 120.29 | |||||||||||||
S&P 500 Financials | S5FINL | $ | 100.00 | $ | 118.92 | $ | 97.34 | $ | 44.56 | $ | 51.99 | $ | 58.27 | |||||||||||||
SNL Bank $1B-$5B | — | $ | 100.00 | $ | 115.72 | $ | 84.36 | $ | 67.88 | $ | 49.93 | $ | 57.38 |
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As of and for the Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
As of and for the Year Ended December 31, | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | (Dollars in Thousands, Except for Per Share Data) | |||||||||||||||||||||||||||||||||||
(Dollars in Thousands, Except for Per Share Data) | ||||||||||||||||||||||||||||||||||||||||
SUMMARY STATEMENTS OF OPERATIONS: | ||||||||||||||||||||||||||||||||||||||||
Interest and Dividend Income | $ | 184,147 | $ | 238,183 | $ | 280,896 | $ | 260,189 | $ | 200,941 | $ | 144,512 | $ | 184,147 | $ | 238,183 | $ | 280,896 | $ | 260,189 | ||||||||||||||||||||
Interest Expense | 82,918 | 103,782 | 129,110 | 106,946 | 62,850 | 38,638 | 82,918 | 103,782 | 129,110 | 106,946 | ||||||||||||||||||||||||||||||
Net Interest Income Before Provision for Credit Losses | 101,229 | 134,401 | 151,786 | 153,243 | 138,091 | 105,874 | 101,229 | 134,401 | 151,786 | 153,243 | ||||||||||||||||||||||||||||||
Provision for Credit Losses | 196,387 | 75,676 | 38,323 | 7,173 | 5,395 | 122,496 | 196,387 | 75,676 | 38,323 | 7,173 | ||||||||||||||||||||||||||||||
Non-Interest Income | 32,110 | 32,854 | 40,006 | 36,963 | 31,450 | 25,406 | 32,110 | 32,854 | 40,006 | 36,963 | ||||||||||||||||||||||||||||||
Non-Interest Expense | 90,354 | 195,027 | 189,929 | 77,313 | 70,201 | 96,805 | 90,354 | 195,027 | 189,929 | 77,313 | ||||||||||||||||||||||||||||||
Income (Loss) Before Provision (Benefit) for Income Taxes | (153,402 | ) | (103,448 | ) | (36,460 | ) | 105,720 | 93,945 | (88,021 | ) | (153,402 | ) | (103,448 | ) | (36,460 | ) | 105,720 | |||||||||||||||||||||||
Provision (Benefit) for Income Taxes | (31,125 | ) | (1,355 | ) | 24,302 | 40,370 | 36,144 | (12 | ) | (31,125 | ) | (1,355 | ) | 24,302 | 40,370 | |||||||||||||||||||||||||
NET INCOME (LOSS) | $ | (122,277 | ) | $ | (102,093 | ) | $ | (60,762 | ) | $ | 65,350 | $ | 57,801 | $ | (88,009 | ) | $ | (122,277 | ) | $ | (102,093 | ) | $ | (60,762 | ) | $ | 65,350 | |||||||||||||
SUMMARY BALANCE SHEETS: | ||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 154,110 | $ | 215,947 | $ | 122,398 | $ | 138,501 | $ | 163,477 | $ | 249,720 | $ | 154,110 | $ | 215,947 | $ | 122,398 | $ | 138,501 | ||||||||||||||||||||
Total Investment Securities | 133,289 | 197,117 | 350,457 | 391,579 | 443,912 | 413,963 | 133,289 | 197,117 | 350,457 | 391,579 | ||||||||||||||||||||||||||||||
Net Loans(1) | 2,674,064 | 3,291,125 | 3,241,097 | 2,837,390 | 2,469,080 | 2,121,067 | 2,674,064 | 3,291,125 | 3,241,097 | 2,837,390 | ||||||||||||||||||||||||||||||
Total Assets | 3,162,706 | 3,875,816 | 3,983,657 | 3,725,243 | 3,414,252 | 2,907,148 | 3,162,706 | 3,875,816 | 3,983,657 | 3,725,243 | ||||||||||||||||||||||||||||||
Total Deposits | 2,749,327 | 3,070,080 | 3,001,699 | 2,944,715 | 2,826,114 | 2,466,721 | 2,749,327 | 3,070,080 | 3,001,699 | 2,944,715 | ||||||||||||||||||||||||||||||
Total Liabilities | 3,012,962 | 3,611,901 | 3,613,101 | 3,238,873 | 2,987,923 | 2,733,892 | 3,012,962 | 3,611,901 | 3,613,101 | 3,238,873 | ||||||||||||||||||||||||||||||
Total Stockholders’ Equity | 149,744 | 263,915 | 370,556 | 486,370 | 426,329 | 173,256 | 149,744 | 263,915 | 370,556 | 486,370 | ||||||||||||||||||||||||||||||
Tangible Equity | 146,362 | 258,965 | 256,548 | 272,412 | 208,580 | 171,023 | 146,362 | 258,965 | 256,548 | 272,412 | ||||||||||||||||||||||||||||||
Average Net Loans(1) | 3,044,395 | 3,276,142 | 3,049,775 | 2,721,229 | 2,359,439 | 2,368,369 | 3,044,395 | 3,276,142 | 3,049,775 | 2,721,229 | ||||||||||||||||||||||||||||||
Average Investment Securities | 188,325 | 271,802 | 368,144 | 414,672 | 418,750 | 215,280 | 188,325 | 271,802 | 368,144 | 414,672 | ||||||||||||||||||||||||||||||
Average Interest-Earning Assets | 3,611,009 | 3,653,720 | 3,494,758 | 3,214,761 | 2,871,564 | 2,981,878 | 3,611,009 | 3,653,720 | 3,494,758 | 3,214,761 | ||||||||||||||||||||||||||||||
Average Total Assets | 3,717,179 | 3,866,856 | 3,882,891 | 3,602,181 | 3,249,190 | 2,998,507 | 3,717,179 | 3,866,856 | 3,882,891 | 3,602,181 | ||||||||||||||||||||||||||||||
Average Deposits | 3,109,322 | 2,913,171 | 2,989,806 | 2,881,448 | 2,632,254 | 2,587,686 | 3,109,322 | 2,913,171 | 2,989,806 | 2,881,448 | ||||||||||||||||||||||||||||||
Average Borrowings | 341,514 | 591,930 | 355,819 | 221,347 | 165,482 | 243,690 | 341,514 | 591,930 | 355,819 | 221,347 | ||||||||||||||||||||||||||||||
Average Interest-Bearing Liabilities | 2,909,014 | 2,874,470 | 2,643,296 | 2,367,389 | 2,046,227 | 2,268,954 | 2,909,014 | 2,874,470 | 2,643,296 | 2,367,389 | ||||||||||||||||||||||||||||||
Average Stockholders’ Equity | 225,708 | 323,462 | 492,637 | 458,227 | 417,813 | 137,968 | 225,708 | 323,462 | 492,637 | 458,227 | ||||||||||||||||||||||||||||||
Average Tangible Equity | 221,537 | 264,490 | 275,036 | 242,362 | 198,527 | 135,171 | 221,537 | 264,490 | 275,036 | 242,362 | ||||||||||||||||||||||||||||||
PER SHARE DATA: | ||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Share – Basic | $ | (2.57 | ) | $ | (2.23 | ) | $ | (1.27 | ) | $ | 1.34 | $ | 1.18 | $ | (0.93 | ) | $ | (2.57 | ) | $ | (2.23 | ) | $ | (1.27 | ) | $ | 1.34 | |||||||||||||
Earnings (Loss) Per Share – Diluted | $ | (2.57 | ) | $ | (2.23 | ) | $ | (1.27 | ) | $ | 1.32 | $ | 1.16 | $ | (0.93 | ) | $ | (2.57 | ) | $ | (2.23 | ) | $ | (1.27 | ) | $ | 1.32 | |||||||||||||
Book Value Per Share(2) | $ | 2.93 | $ | 5.75 | $ | 8.08 | $ | 9.91 | $ | 8.76 | $ | 1.15 | $ | 2.93 | $ | 5.75 | $ | 8.08 | $ | 9.91 | ||||||||||||||||||||
Tangible Book Value Per Share(3) | $ | 2.86 | $ | 5.64 | $ | 5.59 | $ | 5.55 | $ | 4.29 | $ | 1.13 | $ | 2.86 | $ | 5.64 | $ | 5.59 | $ | 5.55 | ||||||||||||||||||||
Cash Dividends Per Share | — | $ | 0.09 | $ | 0.24 | $ | 0.24 | $ | 0.20 | — | — | $ | 0.09 | $ | 0.24 | $ | 0.24 | |||||||||||||||||||||||
Common Shares Outstanding(4) | 51,182,390 | 45,905,549 | 45,860,941 | 49,076,613 | 48,658,798 | |||||||||||||||||||||||||||||||||||
Common Shares Outstanding | 151,198,390 | 51,182,390 | 45,905,549 | 45,860,941 | 49,076,613 |
(1) | Loans receivable, net of allowance for loan losses and deferred loan fees. | |
(2) | Total stockholders’ equity divided by common shares outstanding. | |
(3) | Tangible equity divided by common shares outstanding. | |
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As of and for the Year Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
SELECTED PERFORMANCE RATIOS: | ||||||||||||||||||||
Return on Average Assets(4) | (2.94 | )% | (3.29 | )% | (2.64 | )% | (1.56 | )% | 1.81 | % | ||||||||||
Return on Average Stockholders’ Equity(5) | (63.79 | )% | (54.17 | )% | (31.56 | )% | (12.33 | )% | 14.26 | % | ||||||||||
Return on Average Tangible Equity(6) | (65.11 | )% | (55.19 | )% | (38.60 | )% | (22.09 | )% | 26.96 | % | ||||||||||
Net Interest Spread(7) | 3.15 | % | 2.28 | % | 2.95 | % | 3.20 | % | 3.65 | % | ||||||||||
Net Interest Margin(8) | 3.55 | % | 2.84 | % | 3.72 | % | 4.39 | % | 4.83 | % | ||||||||||
Efficiency Ratio(9) | 73.74 | % | 67.76 | % | 116.60 | % | 99.03 | % | 40.65 | % | ||||||||||
Dividend Payout Ratio(10) | — | — | (4.05 | )% | (18.11 | )% | 18.02 | % | ||||||||||||
Average Stockholders’ Equity to Average Total Assets | 4.60 | % | 6.07 | % | 8.36 | % | 12.69 | % | 12.72 | % | ||||||||||
SELECTED CAPITAL RATIOS: | ||||||||||||||||||||
Total Capital to Total Risk-Weighted Assets: | ||||||||||||||||||||
Hanmi Financial | 12.32 | % | 9.12 | % | 10.79 | % | 10.65 | % | 12.55 | % | ||||||||||
Hanmi Bank | 12.22 | % | 9.07 | % | 10.70 | % | 10.59 | % | 12.28 | % | ||||||||||
Tier 1 Capital to Total Risk-Weighted Assets: | ||||||||||||||||||||
Hanmi Financial | 10.09 | % | 6.76 | % | 9.52 | % | 9.40 | % | 11.58 | % | ||||||||||
Hanmi Bank | 10.91 | % | 7.77 | % | 9.44 | % | 9.34 | % | 11.31 | % | ||||||||||
Tier 1 Capital to Average Total Assets: | ||||||||||||||||||||
Hanmi Financial | 7.90 | % | 5.82 | % | 8.93 | % | 8.52 | % | 10.08 | % | ||||||||||
Hanmi Bank | 8.55 | % | 6.69 | % | 8.85 | % | 8.47 | % | 9.85 | % | ||||||||||
SELECTED ASSET QUALITY RATIOS: | ||||||||||||||||||||
Non-Performing Loans to Total Gross Loans(11) | 7.45 | % | 7.77 | % | 3.62 | % | 1.66 | % | 0.50 | % | ||||||||||
Non-Performing Assets to Total Assets(12) | 5.95 | % | 7.76 | % | 3.17 | % | 1.37 | % | 0.38 | % | ||||||||||
Net Loan Charge-Offs to Average Total Gross Loans | 4.79 | % | 3.88 | % | 1.38 | % | 0.73 | % | 0.17 | % | ||||||||||
Allowance for Loan Losses to Total Gross Loans | 6.44 | % | 5.14 | % | 2.11 | % | 1.33 | % | 0.96 | % | ||||||||||
Allowance for Loan Losses to Non-Performing Loans | 86.41 | % | 66.19 | % | 58.23 | % | 80.05 | % | 193.86 | % |
As of and for the Year Ended December 31, | ||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
SELECTED PERFORMANCE RATIOS: | ||||||||||||||||||||
Return on Average Assets(4) | (3.29 | %) | (2.64 | %) | (1.56 | %) | 1.81 | % | 1.78 | % | ||||||||||
Return on Average Stockholders’ Equity(5) | (54.17 | %) | (31.56 | %) | (12.33 | %) | 14.26 | % | 13.83 | % | ||||||||||
Return on Average Tangible Equity(6) | (55.19 | %) | (38.60 | %) | (22.09 | %) | 26.96 | % | 29.11 | % | ||||||||||
Net Interest Spread(7) | 2.28 | % | 2.95 | % | 3.20 | % | 3.65 | % | 4.02 | % | ||||||||||
Net Interest Margin(8) | 2.84 | % | 3.72 | % | 4.39 | % | 4.83 | % | 4.89 | % | ||||||||||
Efficiency Ratio(9) | 67.76 | % | 116.60 | % | 99.03 | % | 40.65 | % | 41.41 | % | ||||||||||
Dividend Payout Ratio(10) | — | (4.05 | %) | (18.11 | %) | 18.02 | % | 16.84 | % | |||||||||||
Average Stockholders’ Equity to Average Total Assets | 6.07 | % | 8.36 | % | 12.69 | % | 12.72 | % | 12.86 | % | ||||||||||
SELECTED CAPITAL RATIOS: | ||||||||||||||||||||
Total Capital to Total Risk-Weighted Assets: | ||||||||||||||||||||
Hanmi Financial | 9.12 | % | 10.79 | % | 10.65 | % | 12.55 | % | 12.04 | % | ||||||||||
Hanmi Bank | 9.07 | % | 10.70 | % | 10.59 | % | 12.28 | % | 11.98 | % | ||||||||||
Tier 1 Capital to Total Risk-Weighted Assets: | ||||||||||||||||||||
Hanmi Financial | 6.76 | % | 9.52 | % | 9.40 | % | 11.58 | % | 11.03 | % | ||||||||||
Hanmi Bank | 7.77 | % | 9.44 | % | 9.34 | % | 11.31 | % | 10.96 | % | ||||||||||
Tier 1 Capital to Average Total Assets: | ||||||||||||||||||||
Hanmi Financial | 5.82 | % | 8.93 | % | 8.52 | % | 10.08 | % | 9.11 | % | ||||||||||
Hanmi Bank | 6.69 | % | 8.85 | % | 8.47 | % | 9.85 | % | 9.06 | % | ||||||||||
SELECTED ASSET QUALITY RATIOS: | ||||||||||||||||||||
Non-Performing Loans to Total Gross Loans(11) | 7.77 | % | 3.62 | % | 1.66 | % | 0.50 | % | 0.41 | % | ||||||||||
Non-Performing Assets to Total Assets(12) | 7.76 | % | 3.17 | % | 1.37 | % | 0.38 | % | 0.30 | % | ||||||||||
Net Loan Charge-Offs to Average Total Gross Loans | 3.88 | % | 1.38 | % | 0.73 | % | 0.17 | % | 0.12 | % | ||||||||||
Allowance for Loan Losses to Total Gross Loans | 5.14 | % | 2.11 | % | 1.33 | % | 0.96 | % | 1.00 | % | ||||||||||
Allowance for Loan Losses to Non-Performing Loans | 66.19 | % | 58.23 | % | 80.05 | % | 193.86 | % | 246.40 | % |
(4) | Net income (loss) divided by average total assets. | |
(5) | Net income (loss) divided by average stockholders’ equity. | |
(6) | Net income (loss) divided by average tangible equity. | |
(7) | Average yield earned on interest-earning assets less average rate paid on interest-bearing liabilities. Computed on a tax-equivalent basis using an effective marginal rate of 35 percent | |
(8) | Net interest income before provision for credit losses divided by average interest-earning assets. Computed on a tax-equivalent basis using an effective marginal rate of 35 percent | |
(9) | Total non-interest expense divided by the sum of net interest income before provision for credit losses and total non-interest income. | |
(10) | Dividends declared per share divided by basic earnings (loss) per share. | |
(11) | Non-performing loans, including loans held for sale, consist of non-accrual loan and loans past due 90 days or more still accruing interest. | |
(12) | Non-performing assets consist of non-performing loans and other real estate owned. |
4551
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | (Dollars in Thousands) | |||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||
Average Stockholders’ Equity | $ | 225,708 | $ | 323,462 | $ | 492,637 | $ | 458,227 | $ | 417,813 | $ | 137,968 | $ | 225,708 | $ | 323,462 | $ | 492,637 | $ | 458,227 | ||||||||||||||||||||
Less Average Goodwill and Average Other Intangible Assets | (4,171 | ) | (58,972 | ) | (217,601 | ) | (215,865 | ) | (219,286 | ) | (2,797) | (4,171) | (58,972) | (217,601) | (215,865) | |||||||||||||||||||||||||
Average Tangible Equity | $ | 221,537 | $ | 264,490 | $ | 275,036 | $ | 242,362 | $ | 198,527 | $ | 135,171 | $ | 221,537 | $ | 264,490 | $ | 275,036 | $ | 242,362 | ||||||||||||||||||||
Return on Average Stockholders’ Equity | (54.17 | %) | (31.56 | %) | (12.33 | %) | 14.26 | % | 13.83 | % | (63.79)% | (54.17)% | (31.56)% | (12.33)% | 14.26% | |||||||||||||||||||||||||
Effect of Average Goodwill and Average Other Intangible Assets | (1.02 | %) | (7.04 | %) | (9.76 | %) | 12.70 | % | 15.28 | % | (1.32)% | (1.02)% | (7.04)% | (9.76)% | 12.70% | |||||||||||||||||||||||||
Return on Average Tangible Equity | (55.19 | %) | (38.60 | %) | (22.09 | %) | 26.96 | % | 29.11 | % | (65.11%) | (55.19%) | (38.60%) | (22.09%) | 26.96% | |||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
December 31, | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | (Dollars in Thousands, Except Per Share Amounts) | |||||||||||||||||||||||||||||||||||
(Dollars in Thousands, Except Per Share Amounts) | ||||||||||||||||||||||||||||||||||||||||
Total Stockholders’ Equity | $ | 149,744 | $ | 263,915 | $ | 370,556 | $ | 486,370 | $ | 426,329 | $ | 173,256 | $ | 149,744 | $ | 263,915 | $ | 370,556 | $ | 486,370 | ||||||||||||||||||||
Less Goodwill and Other Intangible Assets | (3,382 | ) | (4,950 | ) | (114,008 | ) | (213,958 | ) | (217,749 | ) | (2,233) | (3,382) | (4,950) | (114,008) | (213,958) | |||||||||||||||||||||||||
Tangible Equity | $ | 146,362 | $ | 258,965 | $ | 256,548 | $ | 272,412 | $ | 208,580 | $ | 171,023 | $ | 146,362 | $ | 258,965 | $ | 256,548 | $ | 272,412 | ||||||||||||||||||||
Book Value Per Share | $ | 2.93 | $ | 5.75 | $ | 8.08 | $ | 9.91 | $ | 8.76 | $ | 1.15 | $ | 2.93 | $ | 5.75 | $ | 8.08 | $ | 9.91 | ||||||||||||||||||||
Effect of Goodwill and Other Intangible Assets | (0.07 | ) | (0.11 | ) | (2.49 | ) | (4.36 | ) | (4.47 | ) | (0.02) | (0.07) | (0.11) | (2.49) | (4.36) | |||||||||||||||||||||||||
Tangible Book Value Per Share | $ | 2.86 | $ | 5.64 | $ | 5.59 | $ | 5.55 | $ | 4.29 | $ | 1.13 | $ | 2.86 | $ | 5.64 | $ | 5.59 | $ | 5.55 | ||||||||||||||||||||
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ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
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• | The Bank’s total risk-based capital ratio improved to 12.22% as of December 31, 2010 compared to 9.07% as of December 31, 2009. The Bank’s tangible common equity to tangible assets also improved to 8.59% as of December 31, 2010 compared to 7.13% as of December 31, 2009. | |
• | Non-performing loans decreased to $169.0 million, or 7.45% of total gross loans, as of December 31, 2010 compared to $219.1 million, or 7.77% as of December 31, 2009. The coverage ratio of the allowance to non-performing loans increased to 86.41% as of December 31, 2010 compared to 66.19% as of December 31, 2009. | |
• | The cost of funds decreased through changes in the composition of our deposit portfolio. The average funding cost decreased by 104 basis points to 1.36% for the year ended December 31, 2010 compared to 2.40% for the year ended December 31, 2009. | |
• | Net interest margin improved 71 basis points to 3.55% for the year ended December 31, 2010 compared to 2.84% for the year ended December 31 2009. |
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Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | Interest | Average | 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/ | Average | Income/ | Yield/ | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | (Dollars in Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-Earning Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Loans, Net(1) | $ | 3,157,133 | $ | 173,318 | 5.49 | % | $ | 3,332,133 | $ | 223,942 | 6.72 | % | $ | 3,080,544 | $ | 261,992 | 8.50 | % | $ | 2,544,472 | $ | 137,328 | 5.40 | % | $ | 3,157,133 | $ | 173,318 | 5.49 | % | $ | 3,332,133 | $ | 223,942 | 6.72 | % | ||||||||||||||||||||||||||||||||||||
Municipal Securities(2) | 54,448 | 3,543 | 6.51 | % | 63,918 | 4,180 | 6.54 | % | 71,937 | 4,700 | 6.53 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal Securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxable | 3,746 | 189 | 5.05 | % | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax – Exempt(2) | 6,909 | 346 | 5.01 | % | 54,448 | 3,543 | 6.51 | % | 63,918 | 4,180 | 6.54 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Obligations of Other U.S. Government Agencies | 24,417 | 1,108 | 4.54 | % | 65,440 | 2,813 | 4.30 | % | 116,701 | 4,963 | 4.25 | % | 69,112 | 1,952 | 2.82 | % | 24,417 | 1,108 | 4.54 | % | 65,440 | 2,813 | 4.30 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Other Debt Securities | 109,460 | 4,568 | 4.17 | % | 142,444 | 6,574 | 4.62 | % | 179,506 | 8,436 | 4.70 | % | 135,513 | 3,733 | 2.75 | % | 109,460 | 4,568 | 4.17 | % | 142,444 | 6,574 | 4.62 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity Securities | 41,399 | 656 | 1.58 | % | 38,516 | 1,918 | 4.98 | % | 26,228 | 1,413 | 5.39 | % | 37,437 | 532 | 1.42 | % | 41,399 | 656 | 1.58 | % | 38,516 | 1,918 | 4.98 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Federal Funds Sold | 84,363 | 326 | 0.39 | % | 8,934 | 166 | 1.86 | % | 19,746 | 1,032 | 5.23 | % | 10,346 | 52 | 0.50 | % | 84,363 | 326 | 0.39 | % | 8,934 | 166 | 1.86 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Term Federal Funds Sold | 95,822 | 1,718 | 1.79 | % | 1,913 | 43 | 2.25 | % | 96 | 5 | 5.21 | % | 8,342 | 33 | 0.40 | % | 95,822 | 1,718 | 1.79 | % | 1,913 | 43 | 2.25 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-Earning Deposits | 43,967 | 151 | 0.34 | % | 422 | 10 | 2.37 | % | — | — | — | 166,001 | 468 | 0.28 | % | 43,967 | 151 | 0.34 | % | 422 | 10 | 2.37 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Total Interest-Earning Assets | 3,611,009 | 185,388 | 5.13 | % | 3,653,720 | 239,646 | 6.56 | % | 3,494,758 | 282,541 | 8.08 | % | 2,981,878 | 144,633 | 4.85 | % | 3,611,009 | 185,388 | 5.13 | % | 3,653,720 | 239,646 | 6.56 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-Earning Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | 71,448 | 88,679 | 92,148 | 67,492 | 71,448 | 88,679 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | (112,738 | ) | (55,991 | ) | (30,769 | ) | (176,103 | ) | (112,738 | ) | (55,991 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | 147,460 | 180,448 | 326,754 | 125,240 | 147,460 | 180,448 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Noninterest-Earning Assets | 106,170 | 213,136 | 388,133 | 16,629 | 106,170 | 213,136 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TOTAL ASSETS | $ | 3,717,179 | $ | 3,866,856 | $ | 3,882,891 | $ | 2,998,507 | $ | 3,717,179 | $ | 3,866,856 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings | $ | 91,089 | 2,328 | 2.56 | % | $ | 89,866 | 2,093 | 2.33 | % | $ | 97,173 | 2,004 | 2.06 | % | $ | 119,754 | 3,439 | 2.87 | % | $ | 91,089 | 2,328 | 2.56 | % | $ | 89,866 | 2,093 | 2.33 | % | ||||||||||||||||||||||||||||||||||||||||||
Money Market Checking and NOW Accounts | 507,619 | 9,786 | 1.93 | % | 618,779 | 19,909 | 3.22 | % | 452,825 | 15,446 | 3.41 | % | 464,864 | 4,936 | 1.06 | % | 507,619 | 9,786 | 1.93 | % | 618,779 | 19,909 | 3.22 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Time Deposits of $100,000 or More | 1,051,994 | 34,807 | 3.31 | % | 1,045,968 | 43,598 | 4.17 | % | 1,430,603 | 75,516 | 5.28 | % | 1,069,600 | 19,529 | 1.83 | % | 1,051,994 | 34,807 | 3.31 | % | 1,045,968 | 43,598 | 4.17 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Other Time Deposits | 916,798 | 29,325 | 3.20 | % | 527,927 | 18,753 | 3.55 | % | 306,876 | 15,551 | 5.07 | % | 371,046 | 6,504 | 1.75 | % | 916,798 | 29,325 | 3.20 | % | 527,927 | 18,753 | 3.55 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank Advances | 257,529 | 3,399 | 1.32 | % | 498,875 | 14,027 | 2.81 | % | 237,733 | 12,156 | 5.11 | % | 158,531 | 1,366 | 0.86 | % | 257,529 | 3,399 | 1.32 | % | 498,875 | 14,027 | 2.81 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Other Borrowings | 1,579 | 2 | 0.13 | % | 10,649 | 346 | 3.25 | % | 35,680 | 1,793 | 5.03 | % | 2,753 | 53 | 1.93 | % | 1,579 | 2 | 0.13 | % | 10,649 | 346 | 3.25 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Junior Subordinated Debentures | 82,406 | 3,271 | 3.97 | % | 82,406 | 5,056 | 6.14 | % | 82,406 | 6,644 | 8.06 | % | 82,406 | 2,811 | 3.41 | % | 82,406 | 3,271 | 3.97 | % | 82,406 | 5,056 | 6.14 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Interest-Bearing Liabilities | 2,909,014 | 82,918 | 2.85 | % | 2,874,470 | 103,782 | 3.61 | % | 2,643,296 | 129,110 | 4.88 | % | 2,268,954 | 38,638 | 1.70 | % | 2,909,014 | 82,918 | 2.85 | % | 2,874,470 | 103,782 | 3.61 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-Bearing Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Demand Deposits | 541,822 | 630,631 | 702,329 | 562,422 | 541,822 | 630,631 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | 40,635 | 38,293 | 44,629 | 29,163 | 40,635 | 38,293 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Noninterest-Bearing Liabilities | 582,457 | 668,924 | 746,958 | 591,585 | 582,457 | 668,924 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities | 3,491,471 | 3,543,394 | 3,390,254 | 2,860,539 | 3,491,471 | 3,543,394 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ Equity | 225,708 | 323,462 | 492,637 | 137,968 | 225,708 | 323,462 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 3,717,179 | $ | 3,866,856 | $ | 3,882,891 | $ | 2,998,507 | $ | 3,717,179 | $ | 3,866,856 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Interest Income | $ | 102,470 | $ | 135,864 | $ | 153,431 | $ | 105,995 | $ | 102,470 | $ | 135,864 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Interest Spread(3) | 2.28 | % | 2.95 | % | 3.20 | % | 3.15 | % | 2.28 | % | 2.95 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Interest Margin(4) | 2.84 | % | 3.72 | % | 4.39 | % | 3.55 | % | 2.84 | % | 3.72 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) | Average balances for loans include non-accrual loans and net of deferred fees and related direct costs. Loan fees have been included in the calculation of interest income. Loan fees were $1.8 million, $2.3 million | |
(2) | Computed on a tax-equivalent basis using an effective marginal rate of 35 percent. | |
(3) | Represents the average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities. | |
(4) | Represents net interest income as a percentage of average interest-earning assets. |
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Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | 2010 vs. 2009 | 2009 vs. 2008 | ||||||||||||||||||||||||||||||||||||||||||||||
2009 vs. 2008 | 2008 vs. 2007 | Increase (Decrease) | Increase (Decrease) | |||||||||||||||||||||||||||||||||||||||||||||
Increase (Decrease) | Increase (Decrease) | Due to Change in | Due to Change in | |||||||||||||||||||||||||||||||||||||||||||||
Due to Change in | Due to Change in | Volume | Rate | Total | Volume | Rate | Total | |||||||||||||||||||||||||||||||||||||||||
Volume | Rate | Total | Volume | Rate | Total | (In Thousands) | ||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest and Dividend Income: | ||||||||||||||||||||||||||||||||||||||||||||||||
Gross Loans, Net | $ | (11,281 | ) | $ | (39,343 | ) | $ | (50,624 | ) | $ | 20,139 | $ | (58,189 | ) | $ | (38,050 | ) | $ | (33,111 | ) | $ | (2,879 | ) | $ | (35,990 | ) | $ | (11,281 | ) | $ | (39,343 | ) | $ | (50,624 | ) | |||||||||||||
Municipal Securities | (616 | ) | (21 | ) | (637 | ) | (524 | ) | 4 | (520 | ) | |||||||||||||||||||||||||||||||||||||
Municipal Securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Taxable | 189 | — | 189 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Tax – Exempt | (2,530 | ) | (667 | ) | (3,197 | ) | (616 | ) | (21 | ) | (637 | ) | ||||||||||||||||||||||||||||||||||||
Obligations of Other U.S. Government Agencies | (1,854 | ) | 149 | (1,705 | ) | (2,202 | ) | 52 | (2,150 | ) | 1,393 | (549 | ) | 844 | (1,854 | ) | 149 | (1,705 | ) | |||||||||||||||||||||||||||||
Other Debt Securities | (1,419 | ) | (587 | ) | (2,006 | ) | (1,713 | ) | (149 | ) | (1,862 | ) | 935 | (1,770 | ) | (835 | ) | (1,419 | ) | (587 | ) | (2,006 | ) | |||||||||||||||||||||||||
Equity Securities | 134 | (1396 | ) | (1,262 | ) | 619 | (114 | ) | 505 | (60 | ) | (64 | ) | (124 | ) | 134 | (1,396 | ) | (1,262 | ) | ||||||||||||||||||||||||||||
Federal Funds Sold | 386 | (226 | ) | 160 | (398 | ) | (468 | ) | (866 | ) | (350 | ) | 76 | (274 | ) | 386 | (226 | ) | 160 | |||||||||||||||||||||||||||||
Term Federal Funds Sold | 1,686 | (11 | ) | 1,675 | 43 | (5 | ) | 38 | (909 | ) | (776 | ) | (1,685 | ) | 1,686 | (11 | ) | 1,675 | ||||||||||||||||||||||||||||||
Interest-Earning Deposits | 158 | (17 | ) | 141 | 10 | — | 10 | 349 | (32 | ) | 317 | 158 | (17 | ) | 141 | |||||||||||||||||||||||||||||||||
Total Interest and Dividend Income | (12,806 | ) | (41,452 | ) | (54,258 | ) | 15,974 | (58,869 | ) | (42,895 | ) | (34,094 | ) | (6,661 | ) | (40,755 | ) | (12,806 | ) | (41,452 | ) | (54,258 | ) | |||||||||||||||||||||||||
Interest Expense: | ||||||||||||||||||||||||||||||||||||||||||||||||
Savings | 28 | 207 | 235 | (158 | ) | 247 | 89 | 798 | 313 | 1,111 | 28 | 207 | 235 | |||||||||||||||||||||||||||||||||||
Money Market Checking and NOW Accounts | (3,133 | ) | (6,990 | ) | (10,123 | ) | 5,382 | (919 | ) | 4,463 | (766 | ) | (4,084 | ) | (4,850 | ) | (3,133 | ) | (6,990 | ) | (10,123 | ) | ||||||||||||||||||||||||||
Time Deposits of $100,000 or More | 250 | (9,041 | ) | (8,791 | ) | (17,907 | ) | (14,011 | ) | (31,918 | ) | 574 | (15,852 | ) | (15,278 | ) | 250 | (9,041 | ) | (8,791 | ) | |||||||||||||||||||||||||||
Other Time Deposits | 12,603 | (2,031 | ) | 10,572 | 8,835 | (5,633 | ) | 3,202 | (12,972 | ) | (9,849 | ) | (22,821 | ) | 12,603 | (2,031 | ) | 10,572 | ||||||||||||||||||||||||||||||
Federal Home Loan Bank Advances and Other Borrowings | (5,231 | ) | (5,741 | ) | (10,972 | ) | 8,497 | (8,073 | ) | 424 | ||||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank Advances | (1,068 | ) | (965 | ) | (2,033 | ) | (5,069 | ) | (5,559 | ) | (10,628 | ) | ||||||||||||||||||||||||||||||||||||
Other Borrowings | 2 | 49 | 51 | (162 | ) | (182 | ) | (344 | ) | |||||||||||||||||||||||||||||||||||||||
Junior Subordinated Debentures | — | (1,785 | ) | (1,785 | ) | — | (1,588 | ) | (1,588 | ) | — | (460 | ) | (460 | ) | — | (1,785 | ) | (1,785 | ) | ||||||||||||||||||||||||||||
Total Interest Expense | 4,517 | (25,381 | ) | (20,864 | ) | 4,649 | (29,977 | ) | (25,328 | ) | (13,432 | ) | (30,848 | ) | (44,280 | ) | 4,517 | (25,381 | ) | (20,864 | ) | |||||||||||||||||||||||||||
Change in Net Interest Income | $ | (17,323 | ) | $ | (16,071 | ) | $ | (33,394 | ) | $ | 11,325 | $ | (28,892 | ) | $ | (17,567 | ) | $ | (20,662 | ) | $ | 24,187 | $ | 3,525 | $ | (17,323 | ) | $ | (16,071 | ) | $ | (33,394 | ) | |||||||||||||||
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Year Ended December 31, | ||||||||||||||||||||||||
Year Ended December 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | (In Thousands) | |||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
Service Charges on Deposit Accounts | $ | 17,054 | $ | 18,463 | $ | 18,061 | $ | 14,049 | $ | 17,054 | $ | 18,463 | ||||||||||||
Insurance Commissions | 4,492 | 5,067 | 4,954 | 4,695 | 4,492 | 5,067 | ||||||||||||||||||
Remittance Fees | 2,109 | 2,194 | 2,049 | 1,968 | 2,109 | 2,194 | ||||||||||||||||||
Trade Finance Fees | 1,956 | 3,088 | 4,493 | 1,523 | 1,956 | 3,088 | ||||||||||||||||||
Other Service Charges and Fees | 1,810 | 2,365 | 2,527 | 1,516 | 1,810 | 2,365 | ||||||||||||||||||
Bank-Owned Life Insurance Income | 942 | 932 | 952 | |||||||||||||||||||||
Net Gain on Sales of Loans | 1,220 | 765 | 5,452 | 514 | 1,220 | 765 | ||||||||||||||||||
Bank-Owned Life Insurance Income | 932 | 952 | 933 | |||||||||||||||||||||
Net Gain on Sales of Investment Securities | 1,833 | 77 | — | 122 | 1,833 | 77 | ||||||||||||||||||
Other-Than-Temporary Impairment Loss on Securities | — | (2,410 | ) | (1,074 | ) | (790 | ) | — | (2,410 | ) | ||||||||||||||
Other Operating Income | 704 | 2,293 | 2,611 | 867 | 704 | 2,293 | ||||||||||||||||||
Total Non-Interest Income | $ | 32,110 | $ | 32,854 | $ | 40,006 | $ | 25,406 | $ | 32,110 | $ | 32,854 | ||||||||||||
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Year Ended December 31, | ||||||||||||||||||||||||
Year Ended December 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | (In Thousands) | |||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
Salaries and Employee Benefits | $ | 33,101 | $ | 42,209 | $ | 47,036 | $ | 36,730 | $ | 33,101 | $ | 42,209 | ||||||||||||
Occupancy and Equipment | 11,239 | 11,158 | 10,494 | 10,773 | 11,239 | 11,158 | ||||||||||||||||||
Deposit Insurance Premiums and Regulatory Assessments | 10,418 | 3,713 | 587 | 10,756 | 10,418 | 3,713 | ||||||||||||||||||
Other Real Estate Owned Expense | 10,679 | 5,890 | 390 | |||||||||||||||||||||
Data Processing | 6,297 | 5,799 | 6,390 | 5,931 | 6,297 | 5,799 | ||||||||||||||||||
Other Real Estate Owned Expense | 5,890 | 390 | 8 | |||||||||||||||||||||
Professional Fees | 4,099 | 3,539 | 2,468 | 3,521 | 4,099 | 3,539 | ||||||||||||||||||
Directors and Officers Liability Insurance | 2,865 | 1,175 | 397 | |||||||||||||||||||||
Advertising and Promotion | 2,402 | 3,518 | 3,630 | 2,394 | 2,402 | 3,518 | ||||||||||||||||||
Supplies and Communications | 2,352 | 2,518 | 2,592 | 2,302 | 2,352 | 2,518 | ||||||||||||||||||
Loan-Related Expense | 1,947 | 790 | 674 | 1,147 | 1,947 | 790 | ||||||||||||||||||
Amortization of Other Intangible Assets | 1,568 | 1,958 | 2,324 | 1,149 | 1,568 | 1,958 | ||||||||||||||||||
Other Operating Expenses | 11,041 | 12,042 | 10,835 | 8,558 | 9,866 | 11,645 | ||||||||||||||||||
Impairment Loss on Goodwill | — | 107,393 | 102,891 | — | — | 107,393 | ||||||||||||||||||
Total Non-Interest Expense | $ | 90,354 | $ | 195,027 | $ | 189,929 | $ | 96,805 | $ | 90,354 | $ | 195,027 | ||||||||||||
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Investment Portfolio as of December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
Investment Portfolio as of December 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | Amortized | Fair | Amortized | Fair | Amortized | Fair | ||||||||||||||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | Amortized | Fair | Cost | Value | Cost | Value | Cost | Value | |||||||||||||||||||||||||||||||||||||
Cost | Value | Cost | Value | Cost | Value | (In Thousands) | ||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Securities Held to Maturity: | ||||||||||||||||||||||||||||||||||||||||||||||||
Municipal Bonds | $ | 696 | $ | 696 | $ | 695 | $ | 695 | $ | 694 | $ | 694 | $ | 696 | $ | 696 | $ | 696 | $ | 696 | $ | 695 | $ | 695 | ||||||||||||||||||||||||
Mortgage-Backed Securities(1) | 173 | 175 | 215 | 215 | 246 | 247 | 149 | 151 | 173 | 175 | 215 | 215 | ||||||||||||||||||||||||||||||||||||
Total Securities Held to Maturity | $ | 869 | $ | 871 | $ | 910 | $ | 910 | $ | 940 | $ | 941 | $ | 845 | $ | 847 | $ | 869 | $ | 871 | $ | 910 | $ | 910 | ||||||||||||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized Mortgage Obligations | $ | 139,053 | $ | 137,193 | $ | 12,520 | $ | 12,789 | $ | 36,204 | $ | 36,162 | ||||||||||||||||||||||||||||||||||||
U.S. Government Agency Securities | 114,066 | 113,334 | 33,325 | 32,763 | 17,580 | 17,700 | ||||||||||||||||||||||||||||||||||||||||||
Mortgage-Backed Securities(1) | $ | 65,218 | $ | 66,332 | $ | 77,515 | $ | 78,860 | $ | 99,332 | $ | 99,198 | 108,436 | 109,842 | 65,218 | 66,332 | 77,515 | 78,860 | ||||||||||||||||||||||||||||||
U.S. Government Agency Securities | 33,325 | 32,763 | 17,580 | 17,700 | 104,893 | 105,089 | ||||||||||||||||||||||||||||||||||||||||||
Collateralized Mortgage Obligations(2) | 12,520 | 12,789 | 36,204 | 36,162 | 51,881 | 51,418 | ||||||||||||||||||||||||||||||||||||||||||
Municipal Bonds | 22,420 | 21,028 | 7,369 | 7,359 | 58,987 | 58,313 | ||||||||||||||||||||||||||||||||||||||||||
Corporate Bonds(2) | 20,449 | 20,205 | — | — | 355 | 169 | ||||||||||||||||||||||||||||||||||||||||||
Asset-Backed Securities | 8,127 | 8,188 | — | — | — | — | 7,115 | 7,384 | 8,127 | 8,188 | — | — | ||||||||||||||||||||||||||||||||||||
Municipal Bonds | 7,369 | 7,359 | 58,987 | 58,313 | 69,907 | 71,751 | ||||||||||||||||||||||||||||||||||||||||||
Other Securities | 3,925 | 4,195 | 4,684 | 4,958 | 3,925 | 3,835 | 3,305 | 3,259 | 3,925 | 4,195 | 4,684 | 4,958 | ||||||||||||||||||||||||||||||||||||
Equity Securities | 511 | 794 | 511 | 804 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Corporate Bonds(3) | — | — | 355 | 169 | 18,295 | 18,226 | ||||||||||||||||||||||||||||||||||||||||||
Equity Securities(3) | 647 | 873 | 511 | 794 | 511 | 804 | ||||||||||||||||||||||||||||||||||||||||||
Total Securities Available for Sale | $ | 130,995 | $ | 132,420 | $ | 195,836 | $ | 196,966 | $ | 348,233 | $ | 349,517 | $ | 415,491 | $ | 413,118 | $ | 130,995 | $ | 132,420 | $ | 195,836 | $ | 196,966 | ||||||||||||||||||||||||
(1) | Collateralized by residential mortgages and guaranteed by U.S. government sponsored entities. | |
(2) | ||
Balances presented for amortized cost, representing one corporate bond, were net of an OTTI charge of $2.4 million, which was related to a credit loss, as of December 31, 2008. | ||
(3) | Balances presented for amortized cost, representing two corporate bonds, were net of an OTTI charge of $790,000, which was related to a credit loss, as of December 31, 2010. We recorded an OTTI charge of $790,000 to write down the value of one investment security to its fair value during the year ended December 31, 2010. |
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After One Year But | After Five Years But | |||||||||||||||||||||||||||||||
Within One Year | Within Five Years | Within Ten Years | After Ten Years | |||||||||||||||||||||||||||||
Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | |||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||
Mortgage-Backed Securities | $ | 2,287 | 4.29 | % | $ | 6,506 | 4.24 | % | $ | 5,355 | 4.45 | % | $ | 51,243 | 4.35 | % | ||||||||||||||||
U.S. Government Agency Securities | — | — | — | — | 9,999 | 4.10 | % | 23,326 | 5.57 | % | ||||||||||||||||||||||
Collateralized Mortgage Obligations | 3,386 | 4.00 | % | 3,811 | 4.09 | % | 5,323 | 3.95 | % | — | — | |||||||||||||||||||||
Asset-Backed Securities | — | — | — | — | 5,440 | 4.43 | % | 2,687 | 4.51 | % | ||||||||||||||||||||||
Municipal Bonds(1) | — | — | 695 | 7.06 | % | 2,869 | 6.13 | % | 4,501 | 6.65 | % | |||||||||||||||||||||
Other Securities | 3,925 | 3.37 | % | — | — | — | — | — | — | |||||||||||||||||||||||
Equity Securities | — | — | — | — | — | — | 511 | — | ||||||||||||||||||||||||
Corporate Bonds | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
$ | 9,598 | 3.81 | % | $ | 11,012 | 4.37 | % | $ | 28,986 | 4.40 | % | $ | 82,268 | 4.80 | % | |||||||||||||||||
After One Year But | After Five Years But | |||||||||||||||||||||||||||||||
Within One Year | Within Five Years | Within Ten Years | After Ten Years | |||||||||||||||||||||||||||||
Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | |||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||
Collateralized Mortgage Obligations | $ | 1,450 | 4.49 | % | $ | 90,396 | 2.45 | % | $ | 36,830 | 2.78 | % | $ | 10,377 | 2.79 | % | ||||||||||||||||
U.S. Government Agency Securities | — | — | 96,999 | 1.72 | % | 17,067 | 2.81 | % | — | — | ||||||||||||||||||||||
Mortgage-Backed Securities | 1,973 | 4.34 | % | 84,113 | 2.50 | % | 22,499 | 4.30 | % | — | — | |||||||||||||||||||||
Municipal Bonds(1) | — | — | 696 | 7.06 | % | 2,877 | 5.57 | % | 19,543 | 4.13 | % | |||||||||||||||||||||
Corporate Bonds | — | — | 17,449 | 2.22 | % | 3,000 | 4.00 | % | — | — | ||||||||||||||||||||||
Asset-Backed Securities | — | — | — | — | 4,824 | 4.55 | % | 2,290 | 4.78 | % | ||||||||||||||||||||||
Other Securities | 3,305 | 3.31 | % | — | — | — | — | — | — | |||||||||||||||||||||||
Equity Securities | — | — | — | — | — | — | 648 | — | ||||||||||||||||||||||||
$ | 6,728 | 3.87 | % | $ | 289,653 | 2.20 | % | $ | 87,097 | 3.39 | % | $ | 32,858 | 3.74 | % | |||||||||||||||||
(1) | The yield on municipal bonds has been computed on a tax-equivalent basis, using an effective marginal rate of 35 percent. |
Holding Period | ||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||
Gross | Estimated | Number | Gross | Estimated | Number | Gross | Estimated | Number | ||||||||||||||||||||||||||||
Investment Securities | Unrealized | Fair | of | Unrealized | Fair | of | Unrealized | Fair | of | |||||||||||||||||||||||||||
Available for Sale | Losses | Value | Securities | Losses | Value | Securities | Losses | Value | Securities | |||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||||
December 31, 2009: | ||||||||||||||||||||||||||||||||||||
Mortgage-Backed Securities | $ | 144 | $ | 14,584 | 3 | $ | — | $ | — | — | $ | 144 | $ | 14,584 | 3 | |||||||||||||||||||||
Municipal Bonds | 12 | 303 | 1 | 80 | 793 | 1 | 92 | 1,096 | 2 | |||||||||||||||||||||||||||
U.S. Government Agency Securities | 562 | 32,764 | 6 | — | — | — | 562 | 32,764 | 6 | |||||||||||||||||||||||||||
Other Securities | 24 | 1,976 | 2 | 39 | 961 | 1 | 63 | 2,937 | 3 | |||||||||||||||||||||||||||
$ | 742 | $ | 49,627 | 12 | $ | 119 | $ | 1,754 | 2 | $ | 861 | $ | 51,381 | 14 | ||||||||||||||||||||||
December 31, 2008: | ||||||||||||||||||||||||||||||||||||
Mortgage-Backed Securities | $ | 158 | $ | 10,631 | 42 | $ | 33 | $ | 5,277 | 4 | $ | 191 | $ | 15,908 | 46 | |||||||||||||||||||||
Municipal Bonds | 968 | 35,614 | 66 | 119 | 1,749 | 4 | 1,087 | 37,363 | 70 | |||||||||||||||||||||||||||
Collateralized Mortgage Obligations | 36 | 4,569 | 4 | 143 | 5,903 | 4 | 179 | 10,472 | 8 | |||||||||||||||||||||||||||
Other Securities | 72 | 929 | 1 | 40 | 1,960 | 2 | 112 | 2,889 | 3 | |||||||||||||||||||||||||||
Corporate Bonds | 186 | 169 | 1 | — | — | — | 186 | 169 | 1 | |||||||||||||||||||||||||||
$ | 1,420 | $ | 51,912 | 114 | $ | 335 | $ | 14,889 | 14 | $ | 1,755 | $ | 66,801 | 128 | ||||||||||||||||||||||
Holding Period | ||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||
Gross | Estimated | Number | Gross | Estimated | Number | Gross | Estimated | Number | ||||||||||||||||||||||||||||
Investment Securities | Unrealized | Fair | of | Unrealized | Fair | of | Unrealized | Fair | of | |||||||||||||||||||||||||||
Available for Sale | Losses | Value | Securities | Losses | Value | Securities | Losses | Value | Securities | |||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||||
December 31, 2010: | ||||||||||||||||||||||||||||||||||||
Collateralized Mortgage Obligations | $ | 2,330 | $ | 99,993 | 20 | $ | — | $ | — | — | $ | 2,330 | $ | 90,993 | 20 | |||||||||||||||||||||
U.S. Government Agency Securities | 830 | 69,266 | 14 | — | — | — | 830 | 69,266 | 14 | |||||||||||||||||||||||||||
Mortgage-Backed Securities | $ | 731 | $ | 62,738 | 16 | $ | — | $ | — | — | $ | 731 | $ | 62,738 | 16 | |||||||||||||||||||||
Municipal Bonds | 1,440 | 16,907 | 11 | — | — | — | 1,440 | 16,907 | 11 | |||||||||||||||||||||||||||
Corporate Bonds | 257 | 17,210 | 5 | — | — | — | 257 | 17,210 | 5 | |||||||||||||||||||||||||||
Other Securities | 3 | 1,997 | 2 | 43 | 957 | 1 | 46 | 2,954 | 3 | |||||||||||||||||||||||||||
$ | 5,591 | $ | 268,111 | 68 | $ | 43 | $ | 957 | 1 | $ | 5,634 | $ | 269,068 | 69 | ||||||||||||||||||||||
December 31, 2009: | ||||||||||||||||||||||||||||||||||||
U.S. Government Agency Securities | 562 | 32,764 | 6 | — | — | — | 562 | 32,764 | 6 | |||||||||||||||||||||||||||
Mortgage-Backed Securities | $ | 144 | $ | 14,584 | 3 | $ | — | $ | — | — | $ | 144 | $ | 14,584 | 3 | |||||||||||||||||||||
Municipal Bonds | 12 | 303 | 1 | 80 | 793 | 1 | 92 | 1,096 | 2 | |||||||||||||||||||||||||||
Other Securities | 24 | 1,976 | 2 | 39 | 961 | 1 | 63 | 2,937 | 3 | |||||||||||||||||||||||||||
$ | 742 | $ | 49,627 | 12 | $ | 119 | $ | 1,754 | 2 | $ | 861 | $ | 51,381 | 14 | ||||||||||||||||||||||
65
59
66
60
Amount of Loans Outstanding as of December 31, | ||||||||||||||||||||||||||||||||||||||||
Amount of Loans Outstanding as of December 31, | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | (In Thousands) | |||||||||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||||||||||||
Commercial Property | $ | 839,598 | $ | 908,970 | $ | 795,675 | $ | 757,428 | $ | 733,650 | $ | 731,482 | $ | 839,598 | $ | 908,970 | $ | 795,675 | $ | 757,428 | ||||||||||||||||||||
Construction | 126,350 | 178,783 | 215,857 | 202,207 | 152,080 | 62,400 | 126,350 | 178,783 | 215,857 | 202,207 | ||||||||||||||||||||||||||||||
Residential Property(1) | 77,149 | 92,361 | 90,375 | 81,758 | 88,442 | 62,645 | 77,149 | 92,361 | 90,375 | 81,758 | ||||||||||||||||||||||||||||||
Total Real Estate Loans | 1,043,097 | 1,180,114 | 1,101,907 | 1,041,393 | 974,172 | 856,527 | 1,043,097 | 1,180,114 | 1,101,907 | 1,041,393 | ||||||||||||||||||||||||||||||
Commercial and Industrial Loans: | ||||||||||||||||||||||||||||||||||||||||
Commercial Term Loans | 1,420,034 | 1,611,449 | 1,599,853 | 1,202,612 | 945,210 | 1,133,892 | 1,420,034 | 1,611,449 | 1,599,853 | 1,202,612 | ||||||||||||||||||||||||||||||
Commercial Lines of Credit | 101,159 | 214,699 | 256,978 | 225,630 | 224,271 | 59,056 | 101,159 | 214,699 | 256,978 | 225,630 | ||||||||||||||||||||||||||||||
SBA Loans(2) | 139,531 | 178,399 | 118,528 | 171,631 | 155,491 | 123,750 | 139,531 | 178,399 | 118,528 | 171,631 | ||||||||||||||||||||||||||||||
International Loans | 53,488 | 95,185 | 119,360 | 126,561 | 106,520 | 44,167 | 53,488 | 95,185 | 119,360 | 126,561 | ||||||||||||||||||||||||||||||
Total Commercial and Industrial Loans | 1,714,212 | 2,099,732 | 2,094,719 | 1,726,434 | 1,431,492 | 1,360,865 | 1,714,212 | 2,099,732 | 2,094,719 | 1,726,434 | ||||||||||||||||||||||||||||||
Consumer Loans(3) | 63,303 | 83,525 | 90,449 | 100,121 | 92,154 | 50,300 | 63,303 | 83,525 | 90,449 | 100,121 | ||||||||||||||||||||||||||||||
Total Gross Loans | $ | 2,820,612 | $ | 3,363,371 | $ | 3,287,075 | $ | 2,867,948 | $ | 2,497,818 | $ | 2,267,692 | $ | 2,820,612 | $ | 3,363,371 | $ | 3,287,075 | $ | 2,867,948 | ||||||||||||||||||||
(1) | As of December 31, | |
(2) | As of December 31, 2010, 2009, 2008, 2007 and | |
Consumer loans include home equity lines of credit. |
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Percentage Distribution of Loans as of December 31, | ||||||||||||||||||||||||||||||||||||||||
Percentage Distribution of Loans as of December 31, | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||||||||||||
Commercial Property | 29.8 | % | 27.0 | % | 24.2 | % | 26.4 | % | 29.4 | % | 32.3 | % | 29.8 | % | 27.0 | % | 24.2 | % | 26.4 | % | ||||||||||||||||||||
Construction | 4.5 | % | 5.3 | % | 6.6 | % | 7.1 | % | 6.1 | % | 2.8 | % | 4.5 | % | 5.3 | % | 6.6 | % | 7.1 | % | ||||||||||||||||||||
Residential Property | 2.7 | % | 2.8 | % | 2.7 | % | 2.8 | % | 3.5 | % | 2.7 | % | 2.7 | % | 2.8 | % | 2.7 | % | 2.8 | % | ||||||||||||||||||||
Total Real Estate Loans | 37.0 | % | 35.1 | % | 33.5 | % | 36.3 | % | 39.0 | % | 37.8 | % | 37.0 | % | 35.1 | % | 33.5 | % | 36.3 | % | ||||||||||||||||||||
Commercial and Industrial Loans: | ||||||||||||||||||||||||||||||||||||||||
Commercial Term Loans | 50.3 | % | 47.9 | % | 48.7 | % | 41.9 | % | 37.8 | % | 50.0 | % | 50.3 | % | 47.9 | % | 48.7 | % | 41.9 | % | ||||||||||||||||||||
Commercial Lines of Credit | 3.6 | % | 6.4 | % | 7.8 | % | 7.9 | % | �� | 9.0 | % | 2.6 | % | 3.6 | % | 6.4 | % | 7.8 | % | 7.9 | % | |||||||||||||||||||
SBA Loans | 4.9 | % | 5.3 | % | 3.6 | % | 6.0 | % | 6.2 | % | 5.5 | % | 4.9 | % | 5.3 | % | 3.6 | % | 6.0 | % | ||||||||||||||||||||
International Loans | 2.0 | % | 2.8 | % | 3.6 | % | 4.4 | % | 4.3 | % | 1.9 | % | 2.0 | % | 2.8 | % | 3.6 | % | 4.4 | % | ||||||||||||||||||||
Total Commercial and Industrial Loans | 60.8 | % | 62.4 | % | 63.7 | % | 60.2 | % | 57.3 | % | 60.0 | % | 60.8 | % | 62.4 | % | 63.7 | % | 60.2 | % | ||||||||||||||||||||
Consumer Loans | 2.2 | % | 2.5 | % | 2.8 | % | 3.5 | % | 3.7 | % | 2.2 | % | 2.2 | % | 2.5 | % | 2.8 | % | 3.5 | % | ||||||||||||||||||||
Total Gross Loans | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||
December 31, | ||||||||||||||||
December 31, | 2010 | 2009 | ||||||||||||||
2009 | 2008 | (In Thousands) | ||||||||||||||
(In Thousands) | ||||||||||||||||
Commitments to Extend Credit | $ | 262,821 | $ | 386,785 | $ | 178,424 | $ | 262,821 | ||||||||
Standby Letters of Credit | 17,225 | 47,289 | 15,226 | 17,225 | ||||||||||||
Commercial Letters of Credit | 13,544 | 29,177 | 11,899 | 13,544 | ||||||||||||
Unused Credit Card Lines | 23,408 | 16,912 | 24,649 | 23,408 | ||||||||||||
Total Undisbursed Loan Commitments | $ | 316,998 | $ | 480,163 | $ | 230,198 | $ | 316,998 | ||||||||
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After One | ||||||||||||||||||||||||||||||||
After One | Year But | |||||||||||||||||||||||||||||||
Year But | Within | Within | After | |||||||||||||||||||||||||||||
Within | Within | After | One Year | Five Years | Five Years | Total | ||||||||||||||||||||||||||
One Year | Five Years | Five Years | Total | (In Thousands) | ||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||||
Commercial Property | $ | 703,955 | $ | 135,643 | $ | — | $ | 839,598 | $ | 616,434 | $ | 114,374 | $ | 674 | $ | 731,482 | ||||||||||||||||
Construction | 126,350 | — | — | 126,350 | 62,400 | — | — | 62,400 | ||||||||||||||||||||||||
Residential Property | 19,463 | 52,401 | 5,285 | 77,149 | 38,123 | 17,327 | 7,195 | 62,645 | ||||||||||||||||||||||||
Total Real Estate Loans | 849,768 | 188,044 | 5,285 | 1,043,097 | 716,957 | 131,701 | 7,869 | 856,527 | ||||||||||||||||||||||||
Commercial and Industrial Loans: | ||||||||||||||||||||||||||||||||
Commercial Term Loans | 1,075,332 | 344,702 | — | 1,420,034 | 968,645 | 164,273 | 974 | 1,133,892 | ||||||||||||||||||||||||
Commercial Lines of Credit | 101,159 | — | — | 101,159 | 59,047 | 9 | — | 59,056 | ||||||||||||||||||||||||
SBA Loans | 136,269 | 3,262 | — | 139,531 | 109,770 | 13,980 | — | 123,750 | ||||||||||||||||||||||||
International Loans | 53,488 | — | — | 53,488 | 44,167 | — | — | 44,167 | ||||||||||||||||||||||||
Total Commercial and Industrial Loans | 1,366,248 | 347,964 | — | 1,714,212 | 1,181,629 | 178,262 | 974 | 1,360,865 | ||||||||||||||||||||||||
Consumer Loans | 61,954 | 1,349 | — | 63,303 | 48,605 | 1,695 | — | 50,300 | ||||||||||||||||||||||||
Total Gross Loans | $ | 2,277,970 | $ | 537,357 | $ | 5,285 | $ | 2,820,612 | $ | 1,947,191 | $ | 311,658 | $ | 8,843 | $ | 2,267,692 | ||||||||||||||||
Loans With Predetermined Interest Rates | $ | 412,984 | $ | 512,365 | $ | 5,285 | $ | 930,634 | $ | 427,959 | $ | 280,205 | $ | 7,869 | $ | 716,033 | ||||||||||||||||
Loans With Variable Interest Rates | $ | 1,864,986 | $ | 24,992 | $ | — | $ | 1,889,978 | $ | 1,519,232 | $ | 31,453 | $ | 974 | $ | 1,551,659 | ||||||||||||||||
Balance as of | Percentage of Total | Balance as of | Percentage of Total | |||||||||||||
Industry | December 31, 2009 | Gross Loans Outstanding | December 31, 2010 | Gross Loans Outstanding | ||||||||||||
(In Thousands) | (In Thousands) | |||||||||||||||
Lessors of Non-Residential Buildings | $ | 417,266 | 14.8 | % | $ | 379,043 | 16.7 | % | ||||||||
Accommodation/Hospitality | $ | 413,380 | 14.7 | % | $ | 321,735 | 14.2 | % | ||||||||
Gasoline Stations | $ | 343,100 | 12.2 | % | $ | 287,560 | 12.7 | % |
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December 31, | ||||||||||||||||||||||||||||||||||||||||
December 31, | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | (Dollars in Thousands) | |||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||
Non-Performing Loans: | ||||||||||||||||||||||||||||||||||||||||
Non-Accrual Loans: | ||||||||||||||||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||||||||||||
Commercial Property | $ | 58,927 | $ | 8,160 | $ | 2,684 | $ | 246 | $ | — | $ | 47,937 | $ | 58,927 | $ | 8,160 | $ | 2,684 | $ | 246 | ||||||||||||||||||||
Construction | 15,185 | 38,163 | 24,118 | — | — | 19,097 | 15,185 | 38,163 | 24,118 | — | ||||||||||||||||||||||||||||||
Residential Property | 3,335 | 1,350 | 1,490 | — | 474 | 1,925 | 3,335 | 1,350 | 1,490 | — | ||||||||||||||||||||||||||||||
Commercial and Industrial Loans | 140,931 | 73,007 | 25,729 | 13,862 | 9,574 | 99,022 | 140,931 | 73,007 | 25,729 | 13,862 | ||||||||||||||||||||||||||||||
Consumer Loans | 622 | 143 | 231 | 105 | 74 | 1,047 | 622 | 143 | 231 | 105 | ||||||||||||||||||||||||||||||
Total Non-Accrual Loans | 219,000 | 120,823 | 54,252 | 14,213 | 10,122 | 169,028 | 219,000 | 120,823 | 54,252 | 14,213 | ||||||||||||||||||||||||||||||
Loans 90 Days or More Past Due and Still Accruing (as to Principal or Interest): | ||||||||||||||||||||||||||||||||||||||||
Commercial and Industrial Loans | — | 989 | 150 | — | — | — | — | 989 | 150 | — | ||||||||||||||||||||||||||||||
Consumer Loans | 67 | 86 | 77 | 2 | 9 | — | 67 | 86 | 77 | 2 | ||||||||||||||||||||||||||||||
Total Loans 90 Days or More Past Due and Still Accruing (as to Principal or Interest) | 67 | 1,075 | 227 | 2 | 9 | — | 67 | 1,075 | 227 | 2 | ||||||||||||||||||||||||||||||
Total Non-Performing Loans | 219,067 | 121,898 | 54,479 | 14,215 | 10,131 | |||||||||||||||||||||||||||||||||||
Total Non-Performing Loans(1) (2) | 169,028 | 219,067 | 121,898 | 54,479 | 14,215 | |||||||||||||||||||||||||||||||||||
Other Real Estate Owned | 26,306 | 823 | 287 | — | — | 4,089 | 26,306 | 823 | 287 | — | ||||||||||||||||||||||||||||||
Total Non-Performing Assets | $ | 245,373 | $ | 122,721 | $ | 54,766 | $ | 14,215 | $ | 10,131 | $ | 173,117 | $ | 245,373 | $ | 122,721 | $ | 54,766 | $ | 14,215 | ||||||||||||||||||||
Troubled Debt Restructured Performing Loans | $ | 47,395 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||||||||
Non-Performing Loans as a Percentage of Total Gross Loans | 7.77 | % | 3.62 | % | 1.66 | % | 0.50 | % | 0.41 | % | 7.45 | % | 7.77 | % | 3.62 | % | 1.66 | % | 0.50 | % | ||||||||||||||||||||
Non-Performing Assets as a Percentage of Total Assets | 7.76 | % | 3.17 | % | 1.37 | % | 0.38 | % | 0.30 | % | 5.95 | % | 7.76 | % | 3.17 | % | 1.37 | % | 0.38 | % |
(1) | Include troubled debt restructured non-performing loans of $27.0 million, $36.7 million, $24.2 million as of December 31, 2010, December 31, 2009 and December 31, 2008, respectively. | |
(2) | Include loans held for sale. |
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With No | ||||||||||||||||||||||||
Unpaid | Related | With an | Average | |||||||||||||||||||||
Recorded | Principal | Allowance | Allowance | Related | Recorded | |||||||||||||||||||
Investment | Balance | Recorded | Recorded | Allowance | Investment | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
December 31, 2010: | ||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||
Commercial Property | ||||||||||||||||||||||||
Retail | $ | 17,606 | $ | 18,050 | $ | 6,336 | $ | 11,270 | $ | 1,543 | $ | 21,190 | ||||||||||||
Land | 35,207 | 35,295 | 5,482 | 29,725 | 1,485 | 40,858 | ||||||||||||||||||
Other | 11,357 | 11,476 | 10,210 | 1,147 | 33 | 15,342 | ||||||||||||||||||
Construction | 17,691 | 17,831 | 13,992 | 3,699 | 280 | 12,311 | ||||||||||||||||||
Residential Property | 1,926 | 1,990 | 1,926 | — | — | 2,383 | ||||||||||||||||||
Commercial and Industrial Loans: | ||||||||||||||||||||||||
Commercial Term Loans | ||||||||||||||||||||||||
Unsecured | 17,847 | 18,799 | 6,465 | 11,382 | 10,313 | 18,460 | ||||||||||||||||||
Secured by Real Estate | 80,213 | 81,395 | 35,154 | 45,059 | 11,831 | 101,617 | ||||||||||||||||||
Commercial Lines of Credit | 4,067 | 4,116 | 1,422 | 2,645 | 1,321 | 4,988 | ||||||||||||||||||
SBA Loans | 17,715 | 18,544 | 7,112 | 10,603 | 2,122 | 23,213 | ||||||||||||||||||
International Loans | 127 | 141 | — | 127 | 127 | 397 | ||||||||||||||||||
Consumer Loans | 934 | 951 | 393 | 541 | 393 | 639 | ||||||||||||||||||
Total | $ | 204,690 | $ | 208,588 | $ | 88,492 | $ | 116,198 | $ | 29,448 | $ | 241,398 | ||||||||||||
December 31, 2009: | ||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||
Commercial Property | ||||||||||||||||||||||||
Retail | $ | 19,233 | $ | 19,430 | $ | 17,170 | $ | 2,063 | $ | 120 | $ | 15,834 | ||||||||||||
Land | 22,960 | 22,978 | 19,889 | 3,071 | 461 | 10,801 | ||||||||||||||||||
Other | 16,640 | 16,924 | 14,747 | 1,893 | 176 | 17,283 | ||||||||||||||||||
Construction | 15,185 | 15,204 | 9,823 | 5,362 | 444 | 23,677 | ||||||||||||||||||
Residential Property | 3,335 | 3,459 | 1,989 | 1,346 | 395 | 2,512 | ||||||||||||||||||
Commercial and Industrial Loans: | ||||||||||||||||||||||||
Commercial Term Loans | ||||||||||||||||||||||||
Unsecured | 19,094 | 19,373 | 2,680 | 16,414 | 14,806 | 17,777 | ||||||||||||||||||
Secured by Real Estate | 83,875 | 84,528 | 48,806 | 35,069 | 4,075 | 98,898 | ||||||||||||||||||
Commercial Lines of Credit | 1,906 | 1,951 | 1,345 | 561 | 343 | 2,235 | ||||||||||||||||||
SBA Loans | 20,040 | 20,567 | 10,126 | 9,914 | 1,805 | 17,033 | ||||||||||||||||||
International Loans | 739 | 742 | 739 | — | — | 1,717 | ||||||||||||||||||
Consumer Loans | 524 | 531 | — | 524 | 524 | 890 | ||||||||||||||||||
Total | $ | 203,531 | $ | 205,687 | $ | 127,314 | $ | 76,217 | $ | 23,149 | $ | 208,657 | ||||||||||||
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In Thousands) | ||||||||||||
Interest Income That Would Have Been Recognized Had Impaired Loans Performed in Accordance with Their Original Terms | $ | 20,848 | $ | 17,471 | $ | 7,327 | ||||||
Less: Interest Income Recognized on Impaired Loans(1) | (11,473 | ) | (9,569 | ) | (5,422 | ) | ||||||
Interest Foregone on Impaired Loans | $ | 9,375 | $ | 7,902 | $ | 1,905 | ||||||
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• | changes in lending policies and procedures, including underwriting standards and collection, charge-offs, and recovery practice; | ||
• | changes in national and local economic and business conditions and developments, including the condition of various market segments; | ||
• | changes in the nature and volume of the portfolio; | ||
• | |||
changes in the trend of the volume and severity of past due and classified loans, and trends in the volume of non-accrual loans, troubled debt restructurings, charge-offs and other loan modifications; | |||
• | changes in the quality of the Bank’s loan review system and the degree of oversight by the Board of Directors; | ||
• | the existence and effect of any concentrations of credit, and changes in the level of such concentrations; | ||
• | transfer risk on cross-border lending activities; | ||
• | the effect of external factors such as competition and legal and regulatory requirements as well as declining collateral values on the level of estimated credit losses in the Bank’s current portfolio. |
75
December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan | Allowance | Loans | Allowance | Loans | Allowance | Loans | Allowance | Loans | Allowance | Loans | Allowance | Loans | Allowance | Loans | Allowance | Loans | Allowance | Loans | Allowance | Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Losses Applicable To | Amount | Receivable | Amount | Receivable | Amount | Receivable | Amount | Receivable | Amount | Receivable | Amount | Receivable | Amount | Receivable | Amount | Receivable | Amount | Receivable | Amount | Receivable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Property | $ | 19,149 | $ | 839,598 | $ | 5,587 | $ | 908,970 | $ | 2,269 | $ | 795,675 | $ | 2,101 | $ | 757,428 | $ | 2,043 | $ | 733,650 | $ | 26,248 | $ | 729,222 | $ | 19,149 | $ | 839,598 | $ | 5,587 | $ | 908,970 | $ | 2,269 | $ | 795,675 | $ | 2,101 | $ | 757,428 | ||||||||||||||||||||||||||||||||||||||||
Construction | 9,043 | 126,350 | 4,102 | 178,783 | 3,478 | 215,857 | 586 | 202,207 | 475 | 152,080 | 5,606 | 60,995 | 9,043 | 126,350 | 4,102 | 178,783 | 3,478 | 215,857 | 586 | 202,207 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Property(1) | 997 | 77,149 | 449 | 92,361 | 32 | 90,065 | 19 | 81,128 | 19 | 87,377 | 911 | 62,645 | 997 | 77,149 | 449 | 92,361 | 32 | 90,065 | 19 | 81,128 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Real Estate Loans | 29,189 | 1,043,097 | 10,138 | 1,180,114 | 5,779 | 1,101,597 | 2,706 | 1,040,763 | 2,537 | 973,107 | 32,765 | 852,862 | 29,189 | 1,043,097 | 10,138 | 1,180,114 | 5,779 | 1,101,597 | 2,706 | 1,040,763 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and Industrial Loans(1) | 110,678 | 1,709,202 | 58,866 | 2,062,322 | 36,011 | 2,088,694 | 23,099 | 1,703,194 | 21,035 | 1,431,492 | 108,986 | 1,327,910 | 110,678 | 1,709,202 | 58,866 | 2,062,322 | 36,011 | 2,088,694 | 23,099 | 1,703,194 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Loans | 2,690 | 63,303 | 1,586 | 83,525 | 1,821 | 90,449 | 1,752 | 100,121 | 1,391 | 92,154 | 2,077 | 50,300 | 2,690 | 63,303 | 1,586 | 83,525 | 1,821 | 90,449 | 1,752 | 100,121 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unallocated | 2,439 | — | 396 | — | — | — | — | — | — | — | 2,231 | — | 2,439 | — | 396 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 144,996 | $ | 2,815,602 | $ | 70,986 | $ | 3,325,961 | $ | 43,611 | $ | 3,280,740 | $ | 27,557 | $ | 2,844,078 | $ | 24,963 | $ | 2,496,753 | $ | 146,059 | $ | 2,231,072 | $ | 144,996 | $ | 2,815,602 | $ | 70,986 | $ | 3,325,961 | $ | 43,611 | $ | 3,280,740 | $ | 27,557 | $ | 2,844,078 | ||||||||||||||||||||||||||||||||||||||||
(1) | Loans held for sale excluded. |
65
76
As of and for the Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
As of and for the Year Ended December 31, | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | (Dollars in Thousands) | |||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||||||||||||||
Balance at Beginning of Year | $ | 70,986 | $ | 43,611 | $ | 27,557 | $ | 24,963 | $ | 22,702 | $ | 144,996 | $ | 70,986 | $ | 43,611 | $ | 27,557 | $ | 24,963 | ||||||||||||||||||||
Charge-Offs: | ||||||||||||||||||||||||||||||||||||||||
Real Estate Loans | 27,262 | 15,005 | 199 | — | — | 33,216 | 27,262 | 15,005 | 199 | — | ||||||||||||||||||||||||||||||
Commercial and Industrial Loans | 95,768 | 31,916 | 22,255 | 5,333 | 4,371 | 97,340 | 95,768 | 31,916 | 22,255 | 5,333 | ||||||||||||||||||||||||||||||
Consumer Loans | 2,350 | 1,231 | 876 | 796 | 827 | 1,267 | 2,350 | 1,231 | 876 | 796 | ||||||||||||||||||||||||||||||
Total Charge-Offs | 125,380 | 48,152 | 23,330 | 6,129 | 5,198 | 131,823 | 125,380 | 48,152 | 23,330 | 6,129 | ||||||||||||||||||||||||||||||
Recoveries on Loans Previously Charged Off: | ||||||||||||||||||||||||||||||||||||||||
Real Estate Loans | 5 | — | — | 406 | — | 3,131 | 5 | — | — | 406 | ||||||||||||||||||||||||||||||
Commercial and Industrial Loans | 2,650 | 1,979 | 494 | 957 | 2,193 | 6,623 | 2,650 | 1,979 | 494 | 957 | ||||||||||||||||||||||||||||||
Consumer Loans | 128 | 203 | 202 | 187 | 201 | 177 | 128 | 203 | 202 | 187 | ||||||||||||||||||||||||||||||
Total Recoveries on Loans Previously Charged Off | 2,783 | 2,182 | 696 | 1,550 | 2,394 | 9,931 | 2,783 | 2,182 | 696 | 1,550 | ||||||||||||||||||||||||||||||
Net Loan Charge-Offs | 122,597 | 45,970 | �� | 22,634 | 4,579 | 2,804 | 121,892 | 122,597 | 45,970 | 22,634 | 4,579 | |||||||||||||||||||||||||||||
Provision Charged to Operating Expense | 196,607 | 73,345 | 38,688 | 7,173 | 5,065 | 122,955 | 196,607 | 73,345 | 38,688 | 7,173 | ||||||||||||||||||||||||||||||
Balance at End of Year | $ | 144,996 | $ | 70,986 | $ | 43,611 | $ | 27,557 | $ | 24,963 | $ | 146,059 | $ | 144,996 | $ | 70,986 | $ | 43,611 | $ | 27,557 | ||||||||||||||||||||
Allowance for Off-Balance Sheet Items: | ||||||||||||||||||||||||||||||||||||||||
Balance at Beginning of Year | $ | 4,096 | $ | 1,765 | $ | 2,130 | $ | 2,130 | $ | 1,800 | $ | 3,876 | $ | 4,096 | $ | 1,765 | $ | 2,130 | $ | 2,130 | ||||||||||||||||||||
Provision Charged to Operating Expense | (220 | ) | 2,331 | (365 | ) | — | 330 | (459 | ) | (220 | ) | 2,331 | (365 | ) | — | |||||||||||||||||||||||||
Balance at End of Year | $ | 3,876 | $ | 4,096 | $ | 1,765 | $ | 2,130 | $ | 2,130 | $ | 3,417 | $ | 3,876 | $ | 4,096 | $ | 1,765 | $ | 2,130 | ||||||||||||||||||||
Ratios: | ||||||||||||||||||||||||||||||||||||||||
Net Loan Charge-Offs to Average Total Gross Loans | 3.88 | % | 1.38 | % | 0.73 | % | 0.17 | % | 0.12 | % | 4.79 | % | 3.88 | % | 1.38 | % | 0.73 | % | 0.17 | % | ||||||||||||||||||||
Net Loan Charge-Offs to Total Gross Loans at End of Period | 4.35 | % | 1.37 | % | 0.69 | % | 0.16 | % | 0.11 | % | 5.38 | % | 4.35 | % | 1.37 | % | 0.69 | % | 0.16 | % | ||||||||||||||||||||
Allowance for Loan Losses to Average Total Gross Loans | 4.59 | % | 2.13 | % | 1.41 | % | 1.00 | % | 1.05 | % | 5.74 | % | 4.59 | % | 2.13 | % | 1.41 | % | 1.00 | % | ||||||||||||||||||||
Allowance for Loan Losses to Total Gross Loans at End of Period | 5.14 | % | 2.11 | % | 1.33 | % | 0.96 | % | 1.00 | % | 6.44 | % | 5.14 | % | 2.11 | % | 1.33 | % | 0.96 | % | ||||||||||||||||||||
Net Loan Charge-Offs to Allowance for Loan Losses | 84.55 | % | 64.76 | % | 51.90 | % | 16.62 | % | 11.23 | % | 83.45 | % | 84.55 | % | 64.76 | % | 51.90 | % | 16.62 | % | ||||||||||||||||||||
Net Loan Charge-Offs to Provision Charged to Operating Expense | 62.36 | % | 62.68 | % | 58.50 | % | 63.84 | % | 55.36 | % | 99.14 | % | 62.36 | % | 62.68 | % | 58.50 | % | 63.84 | % | ||||||||||||||||||||
Allowance for Loan Losses to Non-Performing Loans | 66.19 | % | 58.23 | % | 80.05 | % | 193.86 | % | 246.40 | % | 86.41 | % | 66.19 | % | 58.23 | % | 80.05 | % | 193.86 | % | ||||||||||||||||||||
Balances: | ||||||||||||||||||||||||||||||||||||||||
Average Total Gross Loans Outstanding During Period | $ | 3,158,624 | $ | 3,334,008 | $ | 3,082,671 | $ | 2,751,565 | $ | 2,386,575 | $ | 2,545,408 | $ | 3,158,624 | $ | 3,334,008 | $ | 3,082,671 | $ | 2,751,565 | ||||||||||||||||||||
Total Gross Loans Outstanding at End of Period | $ | 2,820,612 | $ | 3,363,371 | $ | 3,287,075 | $ | 2,867,948 | $ | 2,497,818 | $ | 2,267,692 | $ | 2,820,612 | $ | 3,363,371 | $ | 3,287,075 | $ | 2,867,948 | ||||||||||||||||||||
Non-Performing Loans at End of Period | $ | 219,067 | $ | 121,898 | $ | 54,479 | $ | 14,215 | $ | 10,131 | $ | 169,028 | $ | 219,067 | $ | 121,898 | $ | 54,479 | $ | 14,215 | ||||||||||||||||||||
77
66
78
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | Balance | Percent | Balance | Percent | Balance | Percent | ||||||||||||||||||||||||||||||||||||||||
Balance | Percent | Balance | Percent | Balance | Percent | (Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Demand, Noninterest-Bearing | $ | 556,306 | 20.2 | % | $ | 536,944 | 17.5 | % | $ | 680,282 | 22.7 | % | $ | 546,815 | 22.2 | % | $ | 556,306 | 20.2 | % | $ | 536,944 | 17.5 | % | ||||||||||||||||||||||||
Savings | 111,172 | 4.0 | % | 81,869 | 2.7 | % | 93,099 | 3.1 | % | 113,968 | 4.6 | % | 111,172 | 4.0 | % | 81,869 | 2.7 | % | ||||||||||||||||||||||||||||||
Money Market Checking and NOW Accounts | 685,858 | 24.9 | % | 370,401 | 12.1 | % | 445,806 | 14.9 | % | 402,481 | 16.3 | % | 685,858 | 24.9 | % | 370,401 | 12.1 | % | ||||||||||||||||||||||||||||||
Time Deposits of $100,000 or More | 815,190 | 29.8 | % | 849,800 | 27.6 | % | 1,441,683 | 47.9 | % | 1,118,621 | 45.3 | % | 815,190 | 29.8 | % | 849,800 | 27.6 | % | ||||||||||||||||||||||||||||||
Other Time Deposits | 580,801 | 21.1 | % | 1,231,066 | 40.1 | % | 340,829 | 11.4 | % | 284,836 | 11.6 | % | 580,801 | 21.1 | % | 1,231,066 | 40.1 | % | ||||||||||||||||||||||||||||||
Total Deposits | $ | 2,749,327 | 100.0 | % | $ | 3,070,080 | 100.0 | % | $ | 3,001,699 | 100.0 | % | $ | 2,466,721 | 100.0 | % | $ | 2,749,327 | 100.0 | % | $ | 3,070,080 | 100.0 | % | ||||||||||||||||||||||||
67
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | Average | Average | Average | Average | Average | Average | ||||||||||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | Balance | Rate | Balance | Rate | Balance | Rate | |||||||||||||||||||||||||||||||||||||
Balance | Rate | Balance | Rate | Balance | Rate | (Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Demand, Noninterest-Bearing | $ | 541,822 | — | $ | 630,631 | — | $ | 702,329 | — | $ | 562,422 | — | $ | 541,822 | — | $ | 630,631 | — | ||||||||||||||||||||||||||||||
Savings | 91,089 | 2.56 | % | 89,866 | 2.33 | % | 97,173 | 2.06 | % | 119,754 | 2.87 | % | 91,089 | 2.56 | % | 89,866 | 2.33 | % | ||||||||||||||||||||||||||||||
Money Market Checking and NOW Accounts | 507,619 | 1.93 | % | 618,779 | 3.22 | % | 452,825 | 3.41 | % | 464,864 | 1.06 | % | 507,619 | 1.93 | % | 618,779 | 3.22 | % | ||||||||||||||||||||||||||||||
Time Deposits of $100,000 or More | 1,051,994 | 3.31 | % | 1,045,968 | 4.17 | % | 1,430,603 | 5.28 | % | 1,069,600 | 1.83 | % | 1,051,994 | 3.31 | % | 1,045,968 | 4.17 | % | ||||||||||||||||||||||||||||||
Other Time Deposits | 916,798 | 3.20 | % | 527,927 | 3.55 | % | 306,876 | 5.07 | % | 371,046 | 1.75 | % | 916,798 | 3.20 | % | 527,927 | 3.55 | % | ||||||||||||||||||||||||||||||
Total Deposits | $ | 3,109,322 | 2.45 | % | $ | 2,913,171 | 2.90 | % | $ | 2,989,806 | 3.63 | % | $ | 2,587,686 | 1.33 | % | $ | 3,109,322 | 2.45 | % | $ | 2,913,171 | 2.90 | % | ||||||||||||||||||||||||
79
December 31, | ||||||||||||||||||||||||
December 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | (In Thousands) | |||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
Three Months or Less | $ | 344,901 | $ | 238,695 | $ | 958,917 | $ | 343,946 | $ | 344,901 | $ | 238,695 | ||||||||||||
Over Three Months Through Six Months | 246,116 | 246,087 | 289,293 | 135,620 | 246,116 | 246,087 | ||||||||||||||||||
Over Six Months Through Twelve Months | 219,739 | 338,233 | 188,890 | 118,428 | 219,739 | 338,233 | ||||||||||||||||||
Over Twelve Months | 4,434 | 26,785 | 4,583 | 520,627 | 4,434 | 26,785 | ||||||||||||||||||
Total Time Deposits of $100,000 or More | $ | 815,190 | $ | 849,800 | $ | 1,441,683 | $ | 1,118,621 | $ | 815,190 | $ | 849,800 | ||||||||||||
68
69
80
After | After One | |||||||||||||||||||||||
Less | Three | Year But | ||||||||||||||||||||||
Than | Months | Within | After | Non- | ||||||||||||||||||||
Three | But Within | Five | Five | Interest- | ||||||||||||||||||||
Months | One Year | Years | Years | Sensitive | Total | |||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Cash and Due from Banks | $ | — | $ | — | $ | — | $ | — | $ | 55,263 | $ | 55,263 | ||||||||||||
Interest—Bearing Deposits in Other Banks | 95,559 | 3,288 | — | — | — | 98,847 | ||||||||||||||||||
Investment Securities: | ||||||||||||||||||||||||
Fixed Rate | 4,624 | 11,980 | 32,367 | 71,877 | — | 120,848 | ||||||||||||||||||
Floating Rate | 68 | 306 | 7,180 | 4,887 | — | 12,441 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Fixed Rate | 151,971 | 297,291 | 475,805 | 5,285 | — | 930,352 | ||||||||||||||||||
Floating Rate | 1,627,047 | 14,921 | 29,292 | — | — | 1,671,260 | ||||||||||||||||||
Non—Accrual | — | — | — | — | 219,000 | 219,000 | ||||||||||||||||||
Deferred Loan Fees and Allowance for Loan Losses | — | — | — | — | (146,548 | ) | (146,548 | ) | ||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank Stock | — | — | — | 38,575 | — | 38,575 | ||||||||||||||||||
Other Assets | — | 26,408 | — | 6,785 | 129,475 | 162,668 | ||||||||||||||||||
TOTAL ASSETS | $ | 1,879,269 | $ | 354,194 | $ | 544,644 | $ | 127,409 | $ | 257,190 | $ | 3,162,706 | ||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Demand – Noninterest—Bearing | $ | — | $ | — | $ | — | $ | — | $ | 556,306 | $ | 556,306 | ||||||||||||
Savings | 11,017 | 26,416 | 53,823 | 19,916 | — | 111,172 | ||||||||||||||||||
Money Market Checking and NOW Accounts | 95,881 | 198,843 | 278,109 | 113,025 | — | 685,858 | ||||||||||||||||||
Time Deposits: | ||||||||||||||||||||||||
Fixed Rate | 648,555 | 741,664 | 5,767 | 5 | — | 1,395,991 | ||||||||||||||||||
Floating Rate | — | — | — | — | — | — | ||||||||||||||||||
Federal Home Loan Bank Advances | 150,197 | 606 | 3,175 | — | — | 153,978 | ||||||||||||||||||
Other Borrowings | 1,747 | — | — | — | — | 1,747 | ||||||||||||||||||
Junior Subordinated Debentures | 82,406 | — | — | — | — | 82,406 | ||||||||||||||||||
Other Liabilities | — | — | — | — | 25,504 | 25,504 | ||||||||||||||||||
Stockholders’ Equity | — | — | — | — | 149,744 | 149,744 | ||||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 989,803 | $ | 967,529 | $ | 340,874 | $ | 132,946 | $ | 731,554 | $ | 3,162,706 | ||||||||||||
Repricing Gap | $ | 889,466 | $ | (613,335 | ) | $ | 203,770 | $ | (5,537 | ) | $ | (474,364 | ) | $ | — | |||||||||
Cumulative Repricing Gap | $ | 889,466 | $ | 276,131 | $ | 479,901 | $ | 474,364 | $ | — | $ | — | ||||||||||||
Cumulative Repricing Gap as a Percentage of Total Assets | 28.12 | % | 8.73 | % | 15.17 | % | 15.00 | % | — | |||||||||||||||
Cumulative Repricing Gap as a Percentage of Interest-Earning Assets | 30.97 | % | 9.61 | % | 16.71 | % | 16.51 | % | — |
After | After One | |||||||||||||||||||||||
Less | Three | Year But | ||||||||||||||||||||||
Than | Months | Within | After | Non- | ||||||||||||||||||||
Three | But Within | Five | Five | Interest- | ||||||||||||||||||||
Months | One Year | Years | Years | Sensitive | Total | |||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Cash and Due from Banks | $ | — | $ | — | $ | — | $ | — | $ | 60,983 | $ | 60,983 | ||||||||||||
Interest-Bearing Deposits in Other Banks | 184,366 | 4,371 | — | — | — | 188,737 | ||||||||||||||||||
Investment Securities: | ||||||||||||||||||||||||
Fixed Rate | 14,141 | 49,803 | 159,751 | 112,916 | 4,467 | 341,078 | ||||||||||||||||||
Floating Rate | 17,394 | 27,264 | 26,297 | 2,322 | (392 | ) | 72,885 | |||||||||||||||||
Loans: | ||||||||||||||||||||||||
Fixed Rate | 163,611 | 264,348 | 280,206 | 7,869 | — | 716,034 | ||||||||||||||||||
Floating Rate | 1,245,392 | 107,691 | 31,453 | 973 | — | 1,385,509 | ||||||||||||||||||
Non-Accrual | — | — | — | — | 169,028 | 169,028 | ||||||||||||||||||
Deferred Loan Fees, Discounts, and Allowance for Loan Losses | — | — | — | — | (149,504 | ) | (149,504 | ) | ||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank Stock | — | — | — | 34,731 | — | 34,731 | ||||||||||||||||||
Other Assets | — | 27,350 | — | 6,599 | 53,718 | 87,667 | ||||||||||||||||||
TOTAL ASSETS | $ | 1,624,904 | $ | 480,827 | $ | 497,707 | $ | 165,410 | $ | 138,300 | $ | 2,907,148 | ||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Demand – Noninterest-Bearing | $ | — | $ | — | $ | — | $ | — | $ | 546,815 | $ | 546,815 | ||||||||||||
Savings | 11,283 | 27,079 | 55,217 | 20,389 | — | 113,968 | ||||||||||||||||||
Money Market Checking and NOW Accounts | 29,154 | 138,564 | 178,923 | 55,840 | — | 402,481 | ||||||||||||||||||
Time Deposits: | ||||||||||||||||||||||||
Fixed Rate | 428,404 | 381,047 | 593,892 | — | — | 1,403,343 | ||||||||||||||||||
Floating Rate | 58 | — | 56 | — | — | 114 | ||||||||||||||||||
Federal Home Loan Bank Advances | 150,087 | 267 | 3,296 | — | — | 153,650 | ||||||||||||||||||
Other Borrowings | 1,570 | — | — | — | — | 1,570 | ||||||||||||||||||
Junior Subordinated Debentures | 82,406 | — | — | — | — | 82,406 | ||||||||||||||||||
Other Liabilities | — | — | — | — | 29,545 | 29,545 | ||||||||||||||||||
Stockholders’ Equity | — | — | — | — | 173,256 | 173,256 | ||||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 702,962 | $ | 546,957 | $ | 831,384 | $ | 76,229 | $ | 749,616 | $ | 2,907,148 | ||||||||||||
Repricing Gap | $ | 921,942 | $ | (66,130 | ) | $ | (333,677 | ) | $ | 89,181 | $ | (611,316 | ) | $ | — | |||||||||
Cumulative Repricing Gap | $ | 921,942 | $ | 855,812 | $ | 522,135 | $ | 611,316 | $ | — | $ | — | ||||||||||||
Cumulative Repricing Gap as a Percentage of Total Assets | 31.71 | % | 29.44 | % | 17.96 | % | 21.03 | % | — | |||||||||||||||
Cumulative Repricing Gap as a Percentage of Interest-Earning Assets | 33.67 | % | 31.25 | % | 19.07 | % | 22.32 | % | — |
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81
Less Than Three Months | Less Than Twelve Months | |||||||||||||||||||||||||||||||
Less Than Three Months | Less Than Twelve Months | December 31, | December 31, | |||||||||||||||||||||||||||||
December 31, | December 31, | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | (Dollars in Thousands) | ||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||
Cumulative Repricing Gap | $ | 889,466 | $ | 1,127,888 | $ | 276,131 | $ | (145,945 | ) | $ | 921,942 | $ | 889,466 | $ | 855,812 | $ | 276,131 | |||||||||||||||
Percentage of Total Assets | 28.12 | % | 29.10 | % | 8.73 | % | (3.77 | %) | 31.71 | % | 28.12 | % | 29.44 | % | 8.73 | % | ||||||||||||||||
Percentage of Interest-Earning Assets | 30.97 | % | 31.21 | % | 9.61 | % | (4.04 | %) | 33.67 | % | 30.97 | % | 31.25 | % | 9.61 | % |
Rate Shock Table | ||||||||||||||||||||||||||||||||||
Percentage Changes | Change in Amount | Percentage Changes | Change in Amount | |||||||||||||||||||||||||||||||
Change in | Net | Economic | Net | Economic | Change in | Net | Economic | Net | Economic | |||||||||||||||||||||||||
Interest | Interest | Value of | Interest | Value of | Interest | Interest | Value of | Interest | Value of | |||||||||||||||||||||||||
Rate | Income | Equity | Income | Equity | Rate | Income | Equity | Income | Equity | |||||||||||||||||||||||||
(Dollars in Thousands) | (Dollars in Thousands) | |||||||||||||||||||||||||||||||||
200% | 11.08 | % | 7.78 | % | $ | 15,414 | $ | 23,345 | ||||||||||||||||||||||||||
100% | 5.44 | % | 4.49 | % | $ | 7,575 | $ | 13,468 | ||||||||||||||||||||||||||
(100%) | (1 | ) | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||||||
(200%) | (1 | ) | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||||||
200 | % | 9.28 | % | −11.16 | % | $ | 9,531 | $ | (27,126 | ) | ||||||||||||||||||||||||
100 | % | 4.03 | % | −5.71 | % | $ | 4,136 | $ | (13,873 | ) | ||||||||||||||||||||||||
(100 | )% | (1 | ) | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||||||
(200 | )% | (1 | ) | (1 | ) | (1 | ) | (1 | ) |
(1) | The table above only reflects the impact of upward shocks due to the fact that a downward parallel shock of 100 basis points or more is not possible given that some short-term rates are currently less than one percent. |
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82
Ratio of Tangible Shareholder’s | ||
Date | Equity to Total Tangible Assets | |
From December 31, 2010 and Until the Order is Terminated | Not Less Than 9.5 Percent |
72
83
73
84
December 31, | ||||||||
2009 | 2008 | |||||||
(In Thousands) | ||||||||
Commitments to Extend Credit | $ | 262,821 | $ | 386,785 | ||||
Standby Letters of Credit | 17,225 | 47,289 | ||||||
Commercial Letters of Credit | 13,544 | 29,177 | ||||||
Unused Credit Card Lines | 23,408 | 16,912 | ||||||
Total Undisbursed Loan Commitments | $ | 316,998 | $ | 480,163 | ||||
74
December 31, | ||||||||
2010 | 2009 | |||||||
(In Thousands) | ||||||||
Commitments to Extend Credit | $ | 178,424 | $ | 262,821 | ||||
Standby Letters of Credit | 15,226 | 17,225 | ||||||
Commercial Letters of Credit | 11,899 | 13,544 | ||||||
Unused Credit Card Lines | 24,649 | 23,408 | ||||||
Total Undisbursed Loan Commitments | $ | 230,198 | $ | 316,998 | ||||
More Than | More Than | More Than | More Than | |||||||||||||||||||||||||||||||||||||
One Year | Three Years | One Year | Three Years | |||||||||||||||||||||||||||||||||||||
and Less | and Less | More | and Less | and Less | More | |||||||||||||||||||||||||||||||||||
Less Than | Than Three | Than Five | Than Five | Less Than | Than Three | Than Five | Than Five | |||||||||||||||||||||||||||||||||
Contractual Obligations | One Year | Years | Years | Years | Total | One Year | Years | Years | Years | Total | ||||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||||||||
Time Deposits | $ | 1,389,983 | $ | 5,974 | $ | 29 | $ | 5 | $ | 1,395,991 | $ | 809,509 | $ | 593,760 | $ | 188 | $ | — | $ | 1,403,457 | ||||||||||||||||||||
Federal Home Loan Bank Advances and Other Borrowings | 1,747 | 150,000 | 3,978 | — | 155,725 | 151,570 | — | 3,650 | — | 155,220 | ||||||||||||||||||||||||||||||
Commitments to Extend Credit | 262,821 | — | — | — | 262,821 | 178,424 | — | — | — | 178,424 | ||||||||||||||||||||||||||||||
Junior Subordinated Debentures | — | — | — | 82,406 | 82,406 | — | — | — | 82,406 | 82,406 | ||||||||||||||||||||||||||||||
Standby Letters of Credit | 17,184 | 41 | — | — | 17,225 | 15,195 | 31 | — | — | 15,226 | ||||||||||||||||||||||||||||||
Operating Lease Obligations | 5,401 | 8,532 | 5,390 | 7,344 | 26,667 | 4,470 | 7,716 | 3,927 | 5,645 | 21,758 | ||||||||||||||||||||||||||||||
Total Contractual Obligations | $ | 1,677,136 | $ | 164,547 | $ | 9,397 | $ | 89,755 | $ | 1,940,835 | $ | 1,159,168 | $ | 601,507 | $ | 7,765 | $ | 88,051 | $ | 1,856,491 | ||||||||||||||||||||
85
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86
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. | CONTROLS AND PROCEDURES |
76
• | Hanmi Financial’s disclosure controls and procedures were effective as of the end of the period covered by this report |
87
• | pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; | ||
• | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. generally accepted accounting principles; | ||
• | provide reasonable assurance that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and | ||
• | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the consolidated financial statements. |
77
78
88
89
79
90
ITEM 9B. | OTHER INFORMATION |
80
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
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Number of Securities | ||||||||||||
Remaining Available for | ||||||||||||
Future Issuance Under | ||||||||||||
Number of Securities to be | Weighted-Average | Equity Compensation | ||||||||||
Issued Upon Exercise of | Exercise Price of | Plans (Excluding | ||||||||||
Outstanding Options, | Outstanding Options, | Securities | ||||||||||
Warrants and Rights | Warrants and Rights | Reflected in Column(a)) | ||||||||||
(a) | (b) | |||||||||||
Equity Compensation Plans Approved By Security Holders | 1,180,358 | $ | 11.78 | 3,000,000 | ||||||||
Equity Compensation Plans Not Approved By Security Holders | — | $ | — | — | ||||||||
Total Equity Compensation Plans | 1,180,358 | $ | 11.78 | 3,000,000 | ||||||||
81
Number of Securities Remaining Available for Future Issuance Under Number of Securities to be Weighted-Average Equity Compensation Issued Upon Exercise of Exercise Price of Plans (Excluding Outstanding Options, Outstanding Options, Securities Warrants and Rights Warrants and Rights Reflected in Column (a)) (a) (b) Equity Compensation Plans Approved By Security Holders 1,066,891 $ 11.93 2,446,333 Equity Compensation Plans Not Approved By Security Holders 2,000,000 (1) $ 1.20 2,000,000 3,066,891 $ 4.93 4,446,333
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES |
92
ITEM 15. |
(1) | The Financial Statements required to be filed hereunder are listed in the Index to Consolidated Financial Statements on page 83 of this Report. | ||
(2) | All Financial Statement Schedules have been omitted as the required information is inapplicable or has been included in the Notes to Consolidated Financial Statements. | ||
(3) | The Exhibits required to be filed with this Report are listed in the Exhibit Index included herein at pages |
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Page | ||||
95 | ||||
96 | ||||
97 | ||||
98 | ||||
99 | ||||
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95
December 31, | ||||||||||||||||
December 31, | 2010 | 2009 | ||||||||||||||
2009 | 2008 | |||||||||||||||
ASSETS | ASSETS | |||||||||||||||
Cash and Due From Banks | $ | 55,263 | $ | 83,933 | $ | 60,983 | $ | 55,263 | ||||||||
Interest-Bearing Deposits in Other Banks | 98,847 | 2,014 | 158,737 | 98,847 | ||||||||||||
Federal Funds Sold | — | 130,000 | 30,000 | — | ||||||||||||
Cash and Cash Equivalents | 154,110 | 215,947 | 249,720 | 154,110 | ||||||||||||
Securities Held to Maturity, at Amortized Cost (Fair Value: 2009 — $871; 2008 — $910) | 869 | 910 | ||||||||||||||
Securities Held to Maturity, at Amortized Cost (Fair Value: 2010 — $847; 2009 — $871) | 845 | 869 | ||||||||||||||
Securities Available for Sale, at Fair Value | 132,420 | 196,207 | 413,118 | 132,420 | ||||||||||||
Loans Receivable, Net of Allowance for Loan Losses of $144,996 and $70,986 at December 31, 2009 and 2008, Respectively | 2,669,054 | 3,253,715 | ||||||||||||||
Loans Receivable, Net of Allowance for Loan Losses of $146,059 and $144,996 at December 31, 2010 and 2009, Respectively | 2,084,447 | 2,669,054 | ||||||||||||||
Loans Held for Sale, at the Lower of Cost or Fair Value | 5,010 | 37,410 | 36,620 | 5,010 | ||||||||||||
Customers’ Liability on Acceptances | 994 | 4,295 | 711 | 994 | ||||||||||||
Premises and Equipment, Net | 18,657 | 20,279 | 17,599 | 18,657 | ||||||||||||
Accrued Interest Receivable | 9,492 | 12,347 | 8,048 | 9,492 | ||||||||||||
Other Real Estate Owned | 26,306 | 823 | ||||||||||||||
Deferred Income Taxes | 3,608 | 29,456 | ||||||||||||||
Other Real Estate Owned, Net | 4,089 | 26,306 | ||||||||||||||
Deferred Tax Assets | — | 3,608 | ||||||||||||||
Servicing Assets | 3,842 | 3,791 | 2,890 | 3,842 | ||||||||||||
Other Intangible Assets | 3,382 | 4,950 | ||||||||||||||
Other Intangible Assets, Net | 2,233 | 3,382 | ||||||||||||||
Federal Home Loan Bank Stock, at Cost | 30,697 | 30,697 | 27,282 | 30,697 | ||||||||||||
Federal Reserve Bank Stock, at Cost | 7,878 | 10,228 | 7,449 | 7,878 | ||||||||||||
Income Taxes Receivable | 56,554 | 11,712 | 9,188 | 56,554 | ||||||||||||
Bank-Owned Life Insurance | 26,408 | 25,476 | 27,350 | 26,408 | ||||||||||||
Other Assets | 13,425 | 17,573 | 15,559 | 13,425 | ||||||||||||
TOTAL ASSETS | $ | 3,162,706 | $ | 3,875,816 | $ | 2,907,148 | $ | 3,162,706 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||
LIABILITIES: | ||||||||||||||||
Deposits: | ||||||||||||||||
Noninterest-Bearing | $ | 556,306 | $ | 536,944 | $ | 546,815 | $ | 556,306 | ||||||||
Interest-Bearing: | 2,193,021 | 2,533,136 | 1,919,906 | 2,193,021 | ||||||||||||
Total Deposits | 2,749,327 | 3,070,080 | 2,466,721 | 2,749,327 | ||||||||||||
Accrued Interest Payable | 12,606 | 18,539 | 15,966 | 12,606 | ||||||||||||
Acceptances Outstanding | 994 | 4,295 | 711 | 994 | ||||||||||||
Federal Home Loan Bank Advances | 153,978 | 422,196 | 153,650 | 153,978 | ||||||||||||
Other Borrowings | 1,747 | 787 | 1,570 | 1,747 | ||||||||||||
Junior Subordinated Debentures | 82,406 | 82,406 | 82,406 | 82,406 | ||||||||||||
Other Liabilities | 11,904 | 13,598 | 12,868 | 11,904 | ||||||||||||
Total Liabilities | 3,012,962 | 3,611,901 | 2,733,892 | 3,012,962 | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Common Stock, $0.001 Par Value; Authorized 200,000,000 Shares; Issued 55,814,890 Shares (51,182,390 Shares Outstanding) and 50,538,049 Shares (45,905,549 Shares Outstanding) at December 31, 2009 and 2008, Respectively | 56 | 51 | ||||||||||||||
Common Stock, $0.001 Par Value; Authorized 500,000,000 Shares; Issued 155,830,890 Shares (151,198,390 Shares Outstanding) as of December 31, 2010 and Authorized 200,000,000 shares; Issued 55,814,890 Shares (51,182,390 Shares Outstanding) at December 31, 2009, Respectively | 156 | 56 | ||||||||||||||
Additional Paid-In Capital | 357,174 | 349,304 | 472,335 | 357,174 | ||||||||||||
Unearned Compensation | (302 | ) | (218 | ) | (219 | ) | (302 | ) | ||||||||
Accumulated Other Comprehensive Income — Unrealized Gain on Securities Available for Sale, Interest-Only Strips and Interest Rate Swaps, Net of Income Taxes of $602 and $473 at December 31, 2009 and 2008, Respectively | 859 | 544 | ||||||||||||||
Accumulated Other Comprehensive Income (Loss) — Unrealized Gain (Loss) on Securities Available for Sale and Interest-Only Strips, Net of Income Taxes of $602 at December 31, 2010 and 2009 | (2,964 | ) | 859 | |||||||||||||
Accumulated Deficit | (138,031 | ) | (15,754 | ) | (226,040 | ) | (138,031 | ) | ||||||||
Treasury Stock, at Cost (4,632,500 Shares at December 31, 2009 and 2008) | (70,012 | ) | (70,012 | ) | ||||||||||||
Treasury Stock, at Cost (4,632,500 Shares at December 31, 2010 and 2009) | (70,012 | ) | (70,012 | ) | ||||||||||||
Total Stockholders’ Equity | 149,744 | 263,915 | 173,256 | 149,744 | ||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 3,162,706 | $ | 3,875,816 | $ | 2,907,148 | $ | 3,162,706 | ||||||||
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Year Ended December 31, | ||||||||||||||||||||||||
Year Ended December 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
INTEREST AND DIVIDEND INCOME: | ||||||||||||||||||||||||
Interest and Fees on Loans | $ | 173,318 | $ | 223,942 | $ | 261,992 | $ | 137,328 | $ | 173,318 | $ | 223,942 | ||||||||||||
Taxable Interest on Investment Securities | 5,675 | 9,387 | 13,399 | 5,874 | 5,675 | 9,387 | ||||||||||||||||||
Tax-Exempt Interest on Investment Securities | 2,303 | 2,717 | 3,055 | 225 | 2,303 | 2,717 | ||||||||||||||||||
Interest on Term Federal Funds Sold | 1,718 | 43 | 5 | 33 | 1,718 | 43 | ||||||||||||||||||
Dividends on Federal Reserve Bank Stock | 592 | 692 | 704 | 430 | 592 | 692 | ||||||||||||||||||
Interest on Federal Funds Sold and Securities Purchased Under Resale Agreements | 326 | 166 | 1,032 | 52 | 326 | 166 | ||||||||||||||||||
Interest on Interest-Bearing Deposits in Other Banks | 151 | 10 | — | 468 | 151 | 10 | ||||||||||||||||||
Dividends on Federal Home Loan Bank Stock | 64 | 1,226 | 709 | 102 | 64 | 1,226 | ||||||||||||||||||
Total Interest and Dividend Income | 184,147 | 238,183 | 280,896 | 144,512 | 184,147 | 238,183 | ||||||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||||||
Interest on Deposits | 76,246 | 84,353 | 108,517 | 34,408 | 76,246 | 84,353 | ||||||||||||||||||
Interest on Federal Home Loan Bank Advances | 3,399 | 14,027 | 12,156 | 1,366 | 3,399 | 14,027 | ||||||||||||||||||
Interest on Junior Subordinated Debentures | 3,271 | 5,056 | 6,644 | 2,811 | 3,271 | 5,056 | ||||||||||||||||||
Interest on Other Borrowings | 2 | 346 | 1,793 | 53 | 2 | 346 | ||||||||||||||||||
Total Interest Expense | 82,918 | 103,782 | 129,110 | 38,638 | 82,918 | 103,782 | ||||||||||||||||||
NET INTEREST INCOME (LOSS) BEFORE PROVISION FOR CREDIT LOSSES | 101,229 | 134,401 | 151,786 | |||||||||||||||||||||
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES | 105,874 | 101,229 | 134,401 | |||||||||||||||||||||
Provision for Credit Losses | 196,387 | 75,676 | 38,323 | 122,496 | 196,387 | 75,676 | ||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | (95,158 | ) | 58,725 | 113,463 | ||||||||||||||||||||
NET INTEREST INCOME (LOSS) AFTER PROVISION FOR CREDIT LOSSES | (16,622 | ) | (95,158 | ) | 58,725 | |||||||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||||||||
Service Charges on Deposit Accounts | 17,054 | 18,463 | 18,061 | 14,049 | 17,054 | 18,463 | ||||||||||||||||||
Insurance Commissions | 4,492 | 5,067 | 4,954 | 4,695 | 4,492 | 5,067 | ||||||||||||||||||
Remittance Fees | 2,109 | 2,194 | 2,049 | 1,968 | 2,109 | 2,194 | ||||||||||||||||||
Trade Finance Fees | 1,956 | 3,088 | 4,493 | 1,523 | 1,956 | 3,088 | ||||||||||||||||||
Other Service Charges and Fees | 1,810 | 2,365 | 2,527 | 1,516 | 1,810 | 2,365 | ||||||||||||||||||
Bank-Owned Life Insurance Income | 942 | 932 | 952 | |||||||||||||||||||||
Net Gain on Sales of Loans | 1,220 | 765 | 5,452 | 514 | 1,220 | 765 | ||||||||||||||||||
Bank-Owned Life Insurance Income | 932 | 952 | 933 | |||||||||||||||||||||
Net Gain on Sales of Investment Securities | 1,833 | 77 | — | 122 | 1,833 | 77 | ||||||||||||||||||
Other-Than-Temporary Impairment Loss on Securities | — | (2,410 | ) | (1,074 | ) | |||||||||||||||||||
Impairment Loss on Investment Securities: | ||||||||||||||||||||||||
TotalOther-than-temporary Impairment Loss on Investment Securities | (790 | ) | — | (2,410 | ) | |||||||||||||||||||
Less: Portion of Loss Recognized in Other Comprehensive Income | — | — | — | |||||||||||||||||||||
Net Impairment Loss Recognized in Earnings | (790 | ) | — | (2,410 | ) | |||||||||||||||||||
Other Operating Income | 704 | 2,293 | 2,611 | 867 | 704 | 2,293 | ||||||||||||||||||
Total Non-Interest Income | 32,110 | 32,854 | 40,006 | 25,406 | 32,110 | 32,854 | ||||||||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||||||||||||
Salaries and Employee Benefits | 33,101 | 42,209 | 47,036 | 36,730 | 33,101 | 42,209 | ||||||||||||||||||
Occupancy and Equipment | 11,239 | 11,158 | 10,494 | 10,773 | 11,239 | 11,158 | ||||||||||||||||||
Deposit Insurance premiums and Regulatory Assessments | 10,418 | 3,713 | 587 | 10,756 | 10,418 | 3,713 | ||||||||||||||||||
Data Processing | 6,297 | 5,799 | 6,390 | 5,931 | 6,297 | 5,799 | ||||||||||||||||||
Other Real Estate Owned Expense | 5,890 | 390 | 8 | 10,679 | 5,890 | 390 | ||||||||||||||||||
Professional Fees | 4,099 | 3,539 | 2,468 | 3,521 | 4,099 | 3,539 | ||||||||||||||||||
Advertising and Promotion | 2,402 | 3,518 | 3,630 | 2,394 | 2,402 | 3,518 | ||||||||||||||||||
Supplies and Communications | 2,352 | 2,518 | 2,592 | 2,302 | 2,352 | 2,518 | ||||||||||||||||||
Loan-Related Expense | 1,947 | 790 | 674 | 1,147 | 1,947 | 790 | ||||||||||||||||||
Amortization of Other Intangible Assets | 1,568 | 1,958 | 2,324 | 1,149 | 1,568 | 1,958 | ||||||||||||||||||
Directors and Officers Liability Insurance | 2,865 | 1,175 | 397 | |||||||||||||||||||||
Other Operating Expenses | 11,041 | 12,042 | 10,835 | 8,558 | 9,866 | 11,645 | ||||||||||||||||||
Impairment Loss on Goodwill | — | 107,393 | 102,891 | — | — | 107,393 | ||||||||||||||||||
Total Non-Interest Expense | 90,354 | 195,027 | 189,929 | 96,805 | 90,354 | 195,027 | ||||||||||||||||||
INCOME (LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES | (153,402 | ) | (103,448 | ) | (36,460 | ) | ||||||||||||||||||
Provision (Benefit) for Income Taxes | (31,125 | ) | (1,355 | ) | 24,302 | |||||||||||||||||||
LOSS BEFORE BENEFIT FOR INCOME TAXES | (88,021 | ) | (153,402 | ) | (103,448 | ) | ||||||||||||||||||
Benefit for Income Taxes | (12 | ) | (31,125 | ) | (1,355 | ) | ||||||||||||||||||
NET LOSS | $ | (122,277 | ) | $ | (102,093 | ) | $ | (60,762 | ) | $ | (88,009 | ) | $ | (122,277 | ) | $ | (102,093 | ) | ||||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||||||||||
LOSS PER SHARE: | ||||||||||||||||||||||||
Basic | $ | (2.57 | ) | $ | (2.23 | ) | $ | (1.27 | ) | $ | (0.93 | ) | $ | (2.57 | ) | $ | (2.23 | ) | ||||||
Diluted | $ | (2.57 | ) | $ | (2.23 | ) | $ | (1.27 | ) | $ | (0.93 | ) | $ | (2.57 | ) | $ | (2.23 | ) | ||||||
WEIGHTED-AVERAGE SHARES OUTSTANDING: | ||||||||||||||||||||||||
Basic | 47,570,361 | 45,872,541 | 47,787,213 | 94,322,222 | 47,570,361 | 45,872,541 | ||||||||||||||||||
Diluted | 47,570,361 | 45,872,541 | 47,787,213 | 94,322,222 | 47,570,361 | 45,872,541 | ||||||||||||||||||
DIVIDENDS DECLARED PER SHARE | $ | — | $ | 0.09 | $ | 0.24 | $ | — | $ | — | $ | 0.09 |
86
97
Common Stock — Number of Shares | Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||
Gross | Net | Accumulated | ||||||||||||||||||||||||||||||||||||||||
Shares | Shares | Additional | Other | Retained | Treasury | Total | ||||||||||||||||||||||||||||||||||||
Issued and | Treasury | Issued and | Common | Paid-in | Unearned | Comprehensive | Earnings | Stock, | Stockholders’ | |||||||||||||||||||||||||||||||||
Outstanding | Shares | Outstanding | Stock | Capital | Compensation | Income (Loss) | (Deficit) | at Cost | Equity | |||||||||||||||||||||||||||||||||
BALANCE AT JANUARY 1, 2007 | 50,239,613 | (1,163,000 | ) | 49,076,613 | 50 | 344,810 | — | (3,200 | ) | 164,751 | (20,041 | ) | 486,370 | |||||||||||||||||||||||||||||
Shares Issued for Business Acquisitions | 102,181 | — | 102,181 | — | 2,198 | — | — | — | — | 2,198 | ||||||||||||||||||||||||||||||||
Exercises of Stock Options and Stock Warrants | 132,647 | — | 132,647 | — | 1,164 | — | — | — | — | 1,164 | ||||||||||||||||||||||||||||||||
Share-Based Compensation Expense | — | — | — | — | 1,880 | 11 | — | — | — | 1,891 | ||||||||||||||||||||||||||||||||
Restricted Stock Awards | 19,000 | — | 19,000 | — | 256 | (256 | ) | — | — | — | — | |||||||||||||||||||||||||||||||
Tax Benefit from Exercise of Stock Options | — | — | — | — | 317 | — | — | — | — | 317 | ||||||||||||||||||||||||||||||||
Cash Dividends | — | — | — | — | — | — | — | (11,574 | ) | — | (11,574 | ) | ||||||||||||||||||||||||||||||
Repurchase of Common Stock | — | (3,469,500 | ) | (3,469,500 | ) | — | — | — | — | — | (49,971 | ) | (49,971 | ) | ||||||||||||||||||||||||||||
Repurchase of Stock Warrants | — | — | — | — | (2,552 | ) | — | — | — | — | (2,552 | ) | ||||||||||||||||||||||||||||||
Comprehensive Income: | ||||||||||||||||||||||||||||||||||||||||||
Net Loss | — | — | — | — | — | — | — | (60,762 | ) | — | (60,762 | ) | ||||||||||||||||||||||||||||||
Change in Unrealized Gain on Securities Available for Sale, Interest-Only Strips and Interest Rate Swaps, Net of Income Taxes | — | — | — | — | — | — | 3,475 | — | — | 3,475 | ||||||||||||||||||||||||||||||||
Total Comprehensive Loss | (57,287 | ) | ||||||||||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2007 | 50,493,441 | (4,632,500 | ) | 45,860,941 | 50 | 348,073 | (245 | ) | 275 | 92,415 | (70,012 | ) | 370,556 | |||||||||||||||||||||||||||||
Cumulative-Effect Adjustment — Adoption of EITF Issue No. 06-4 | — | — | — | — | — | — | — | (2,223 | ) | — | (2,223 | ) | ||||||||||||||||||||||||||||||
Shares Issued for Business Acquisitions | 39,608 | — | 39,608 | 1 | 292 | — | — | — | — | 293 | ||||||||||||||||||||||||||||||||
Repurchase of Stock Options | — | — | — | — | (70 | ) | — | — | — | — | (70 | ) | ||||||||||||||||||||||||||||||
Share-Based Compensation Expense | — | — | — | — | 983 | 53 | — | — | — | 1,036 | ||||||||||||||||||||||||||||||||
Restricted Stock Awards | 10,000 | — | 10,000 | — | 67 | (67 | ) | — | — | — | — | |||||||||||||||||||||||||||||||
Cancellation of Restricted Stock Award | (5,000 | ) | — | (5,000 | ) | — | (41 | ) | 41 | — | — | — | — | |||||||||||||||||||||||||||||
Cash Dividends | — | — | — | — | — | — | — | (3,853 | ) | — | (3,853 | ) | ||||||||||||||||||||||||||||||
Comprehensive Loss: | ||||||||||||||||||||||||||||||||||||||||||
Net Loss | — | — | — | — | — | — | — | (102,093 | ) | — | (102,093 | ) | ||||||||||||||||||||||||||||||
Change in Unrealized Gain on Securities Available for Sale, Interest-Only Strips and Interest Rate Swaps, Net of Income Taxes | — | — | — | — | — | — | 269 | — | — | 269 | ||||||||||||||||||||||||||||||||
Total Comprehensive Loss | (101,824 | ) | ||||||||||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2008 | 50,538,049 | (4,632,500 | ) | 45,905,549 | $ | 51 | $ | 349,304 | $ | (218 | ) | $ | 544 | $ | (15,754 | ) | $ | (70,012 | ) | $ | 263,915 | |||||||||||||||||||||
Shares Issued for Business Acquisitions | 39,418 | — | 39,418 | — | 46 | — | — | — | — | 46 | ||||||||||||||||||||||||||||||||
Issuance of Stock in Private Offering | 5,070,423 | — | 5,070,423 | 5 | 6,834 | — | — | — | — | 6,839 | ||||||||||||||||||||||||||||||||
Share-Based Compensation Expense | — | — | — | — | 836 | 70 | — | — | — | 906 | ||||||||||||||||||||||||||||||||
Restricted Stock Awards | 205,000 | — | 205,000 | — | 284 | (284 | ) | — | — | — | — | |||||||||||||||||||||||||||||||
Cancellation of Restricted Stock Award | (38,000 | ) | — | (38,000 | ) | — | (130 | ) | 130 | — | — | — | — | |||||||||||||||||||||||||||||
Comprehensive Loss: | ||||||||||||||||||||||||||||||||||||||||||
Net Loss | — | — | — | — | — | — | — | (122,277 | ) | — | (122,277 | ) | ||||||||||||||||||||||||||||||
Change in Unrealized Gain on Securities Available for Sale, Interest-Only Strips and Net of Income Taxes | — | — | — | — | — | — | 315 | — | — | 315 | ||||||||||||||||||||||||||||||||
Total Comprehensive Loss | (121,962 | ) | ||||||||||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2009 | 55,814,890 | (4,632,500 | ) | 51,182,390 | $ | 56 | $ | 357,174 | $ | (302 | ) | $ | 859 | $ | (138,031 | ) | $ | (70,012 | ) | $ | 149,744 | |||||||||||||||||||||
Common Stock — Number of Shares | Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||
Gross | Net | Accumulated | ||||||||||||||||||||||||||||||||||||||
Shares | Shares | Additional | Other | Retained | Treasury | Total | ||||||||||||||||||||||||||||||||||
Issued and | Treasury | Issued and | Common | Paid-in | Unearned | Comprehensive | Earnings | Stock, | Stockholders’ | |||||||||||||||||||||||||||||||
Outstanding | Shares | Outstanding | Stock | Capital | Compensation | Income (Loss) | (Deficit) | at Cost | Equity | |||||||||||||||||||||||||||||||
BALANCE AT JANUARY 1, 2008 | 50,493,441 | (4,632,500 | ) | 45,860,941 | 50 | 348,073 | (245 | ) | 275 | 92,415 | (70,012 | ) | 370,556 | |||||||||||||||||||||||||||
Cumulative-Effect Adjustment — Adoption of EITF IssueNo. 06-4 | — | — | — | — | — | — | — | (2,223 | ) | — | (2,223 | ) | ||||||||||||||||||||||||||||
Shares Issued for Business Acquisitions | 39,608 | — | 39,608 | 1 | 292 | — | — | — | — | 293 | ||||||||||||||||||||||||||||||
Repurchase of Stock Options | — | — | — | — | (70 | ) | — | — | — | — | (70 | ) | ||||||||||||||||||||||||||||
Share-Based Compensation Expense | — | — | — | — | 983 | 53 | — | — | — | 1,036 | ||||||||||||||||||||||||||||||
Restricted Stock Awards | 10,000 | — | 10,000 | — | 67 | (67 | ) | — | — | — | — | |||||||||||||||||||||||||||||
Cancellation of Restricted Stock Award | (5,000 | ) | — | (5,000 | ) | — | (41 | ) | 41 | — | — | — | — | |||||||||||||||||||||||||||
Cash Dividends | — | — | — | — | — | — | — | (3,853 | ) | — | (3,853 | ) | ||||||||||||||||||||||||||||
Comprehensive Loss: | ||||||||||||||||||||||||||||||||||||||||
Net Loss | — | — | — | — | — | — | — | (102,093 | ) | — | (102,093 | ) | ||||||||||||||||||||||||||||
Change in Unrealized Gain on Securities Available for Sale, Interest-Only Strips and Interest Rate Swaps, Net of Income Taxes | — | — | — | — | — | — | 269 | — | — | 269 | ||||||||||||||||||||||||||||||
Total Comprehensive Loss | (101,824 | ) | ||||||||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2008 | 50,538,049 | (4,632,500 | ) | 45,905,549 | $ | 51 | $ | 349,304 | $ | (218 | ) | $ | 544 | $ | (15,754 | ) | $ | (70,012 | ) | $ | 263,915 | |||||||||||||||||||
Shares Issued for Business Acquisitions | 39,418 | — | 39,418 | — | 46 | — | — | — | — | 46 | ||||||||||||||||||||||||||||||
Issuance of Stock in Private Offering | 5,070,423 | — | 5,070,423 | 5 | 6,834 | — | — | — | — | 6,839 | ||||||||||||||||||||||||||||||
Share-Based Compensation Expense | — | — | — | — | 836 | 70 | — | — | — | 906 | ||||||||||||||||||||||||||||||
Restricted Stock Awards | 205,000 | — | 205,000 | — | 284 | (284 | ) | — | — | — | — | |||||||||||||||||||||||||||||
Cancellation of Restricted Stock Award | (38,000 | ) | — | (38,000 | ) | — | (130 | ) | 130 | — | — | — | — | |||||||||||||||||||||||||||
Comprehensive Loss: | ||||||||||||||||||||||||||||||||||||||||
Net Loss | — | — | — | — | — | — | — | (122,277 | ) | — | (122,277 | ) | ||||||||||||||||||||||||||||
Change in Unrealized Gain on Securities Available for Sale and Interest-Only Strips, Net of Income Taxes | — | — | — | — | — | — | 315 | — | — | 315 | ||||||||||||||||||||||||||||||
Total Comprehensive Loss | (121,962 | ) | ||||||||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2009 | 55,814,890 | (4,632,500 | ) | 51,182,390 | $ | 56 | $ | 357,174 | $ | (302 | ) | $ | 859 | $ | (138,031 | ) | $ | (70,012 | ) | $ | 149,744 | |||||||||||||||||||
Shares Issued, Net of Offering and Underwriting Costs | 100,000,000 | — | 100,000,000 | 100 | 114,209 | — | — | — | — | 114,309 | ||||||||||||||||||||||||||||||
Exercises of Stock Options | 16,000 | — | 16,000 | — | 22 | — | — | — | — | 22 | ||||||||||||||||||||||||||||||
Share-Based Compensation Expense | — | — | — | — | 930 | 83 | — | — | — | 1,013 | ||||||||||||||||||||||||||||||
Comprehensive Loss: | ||||||||||||||||||||||||||||||||||||||||
Net Loss | — | — | — | — | — | — | — | (88,009 | ) | — | (88,009 | ) | ||||||||||||||||||||||||||||
Change in Unrealized Loss on Securities Available for Sale and Interest-Only Strips, Net of Income Taxes | — | — | — | — | — | — | (3,823 | ) | — | — | (3,823 | ) | ||||||||||||||||||||||||||||
Total Comprehensive Loss | (91,832 | ) | ||||||||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2010 | 155,830,890 | (4,632,500 | ) | 151,198,390 | $ | 156 | $ | 472,335 | $ | (219 | ) | $ | (2,964 | ) | $ | (226,040 | ) | $ | (70,012 | ) | $ | 173,256 | ||||||||||||||||||
87
98
Year Ended December 31, | ||||||||||||||||||||||||
Year Ended December 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||||||||||
Net Loss | $ | (122,277 | ) | $ | (102,093 | ) | $ | (60,762 | ) | $ | (88,009 | ) | $ | (122,277 | ) | $ | (102,093 | ) | ||||||
Adjustments to Reconcile Net Loss to Net Cash Provided By Operating Activities: | ||||||||||||||||||||||||
Depreciation and Amortization of Premises and Equipment | 2,610 | 2,900 | 2,953 | 2,286 | 2,610 | 2,900 | ||||||||||||||||||
Amortization of Premiums and Accretion of Discounts on Investment Securities, Net | (516 | ) | 164 | 218 | 1,329 | (516 | ) | 164 | ||||||||||||||||
Amortization of Other Intangible Assets | 1,568 | 1,958 | 2,324 | 1,149 | 1,568 | 1,958 | ||||||||||||||||||
Amortization of Servicing Assets | 823 | 1,295 | 2,046 | 1,033 | 823 | 1,295 | ||||||||||||||||||
Share-Based Compensation Expense | 906 | 1,036 | 1,891 | 1,013 | 906 | 1,036 | ||||||||||||||||||
Provision for Credit Losses | 196,387 | 75,676 | 38,323 | �� | 122,496 | 196,387 | 75,676 | |||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank Stock Dividends | — | (1,259 | ) | (708 | ) | — | — | (1,259 | ) | |||||||||||||||
Net Gain on Sales of Investment Securities | (1,833 | ) | (77 | ) | — | (122 | ) | (1,833 | ) | (77 | ) | |||||||||||||
Other-Than-Temporary Impairment Loss on Investment Securities | — | 2,410 | 1,074 | 790 | — | 2,410 | ||||||||||||||||||
Net Gain on Sales of Loans | (1,220 | ) | (765 | ) | (5,452 | ) | (514 | ) | (1,220 | ) | (765 | ) | ||||||||||||
(Gain) Loss on Sales of Other Real Estate Owned | 211 | 324 | (226 | ) | ||||||||||||||||||||
Loss on Sales of Other Real Estate Owned | 196 | 211 | 324 | |||||||||||||||||||||
Valuation Impairment on Other Real Estate Owned | 3,115 | — | — | 8,683 | 3,115 | — | ||||||||||||||||||
Impairment Loss on Goodwill | — | 107,393 | 102,891 | — | — | 107,393 | ||||||||||||||||||
Excess Tax Benefit from Exercises of Stock Options | — | — | (193 | ) | ||||||||||||||||||||
Cash Surrender Value of Bank-Owned Life Insurance | (942 | ) | (932 | ) | (951 | ) | ||||||||||||||||||
Deferred Tax Expense (Benefit) | 26,016 | (11,254 | ) | (14,618 | ) | 3,561 | 26,016 | (11,254 | ) | |||||||||||||||
Origination of Loans Held for Sale | (1,711 | ) | (54,347 | ) | (108,639 | ) | (20,228 | ) | (1,711 | ) | (54,347 | ) | ||||||||||||
Net Proceeds from Sales of Loans Held for Sale | 35,331 | 24,037 | 131,626 | 144,308 | 35,331 | 24,037 | ||||||||||||||||||
Decrease (Increase) in Accrued Interest Receivable | 2,855 | 5,064 | (492 | ) | ||||||||||||||||||||
Changes in Fair Value of Stock Warrants | (362 | ) | — | — | ||||||||||||||||||||
Loss on Investment in Affordable Housing Partnership | 880 | 895 | 760 | |||||||||||||||||||||
Decrease in Accrued Interest Receivable | 1,444 | 2,855 | 5,064 | |||||||||||||||||||||
Increase in Servicing Assets, Net | (874 | ) | (750 | ) | (1,803 | ) | (81 | ) | (874 | ) | (750 | ) | ||||||||||||
Increase in Cash Surrender Value of Bank-Owned Life Insurance | (932 | ) | (951 | ) | (933 | ) | ||||||||||||||||||
(Increase) Decrease in Other Assets | 4,000 | 7,937 | 2,875 | (3,014 | ) | 3,105 | 7,177 | |||||||||||||||||
Increase in Income Taxes Receivable | (44,842 | ) | (6,081 | ) | — | |||||||||||||||||||
(Increase) Decrease in Income Taxes Receivable | 47,366 | (44,842 | ) | (6,081 | ) | |||||||||||||||||||
Increase (Decrease) in Accrued Interest Payable | (5,933 | ) | (3,289 | ) | (754 | ) | 3,360 | (5,933 | ) | (3,289 | ) | |||||||||||||
Increase (Decrease) in Other Liabilities | (1,428 | ) | (5,573 | ) | 3,158 | |||||||||||||||||||
Decrease in Other Liabilities | (177 | ) | (1,428 | ) | (5,573 | ) | ||||||||||||||||||
Net Cash Provided By Operating Activities | 92,256 | 43,755 | 94,821 | 226,445 | 92,256 | 43,755 | ||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||||||
Proceeds from Matured Term Federal Funds Sold | — | — | 5,000 | |||||||||||||||||||||
Proceeds from Redemption of Federal Home Loan Bank and Federal Reserve Bank Stock | 2,350 | 4,074 | — | 4,510 | 2,350 | 4,074 | ||||||||||||||||||
Proceeds from Matured or Called Securities Available for Sale | 62,144 | 147,320 | 89,958 | 130,125 | 62,144 | 147,320 | ||||||||||||||||||
Proceeds from Sales of Investment Securities Available for Sale | 93,685 | 28,501 | — | 31,832 | 93,685 | 28,501 | ||||||||||||||||||
Repayments and Redemption of Investment Securities Held to Maturity | 24 | — | — | |||||||||||||||||||||
Proceeds from Sales of Other Real Estate Owned | 4,917 | 2,128 | 1,306 | 25,113 | 4,917 | 2,128 | ||||||||||||||||||
Net Decrease (Increase) in Loans Receivable | 354,328 | (95,286 | ) | (461,297 | ) | 294,701 | 354,328 | (95,286 | ) | |||||||||||||||
Purchases of Federal Home Loan Bank and Federal Reserve Bank Stock | — | (10,261 | ) | (7,849 | ) | (666 | ) | — | (10,261 | ) | ||||||||||||||
Purchases of Investment Securities Available for Sale | (89,357 | ) | (24,580 | ) | (44,980 | ) | (448,428 | ) | (89,357 | ) | (24,580 | ) | ||||||||||||
Purchases of Premises and Equipment | (988 | ) | (2,379 | ) | (3,682 | ) | (1,228 | ) | (988 | ) | (2,379 | ) | ||||||||||||
Business Acquisitions, Net of Cash Acquired | — | — | (1,727 | ) | ||||||||||||||||||||
Net Cash Provided By (Used In) Investing Activities | 427,079 | 49,517 | (423,271 | ) | ||||||||||||||||||||
Net Cash Provided By Investing Activities | 35,983 | 427,079 | 49,517 | |||||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||||||
Increase (Decrease) in Deposits | (320,753 | ) | 68,381 | 56,984 | (282,606 | ) | (320,753 | ) | 68,381 | |||||||||||||||
Net Proceeds from Issuance of Common Stock in Private Offering | 6,839 | — | — | |||||||||||||||||||||
Proceeds from Exercises of Stock Options and Stock Warrants | — | — | 1,164 | |||||||||||||||||||||
Excess Tax Benefit from Exercises of Stock Options | — | — | 193 | |||||||||||||||||||||
Cash Paid to Acquire Treasury Stock | — | — | (49,971 | ) | ||||||||||||||||||||
Net Proceeds from Issuance of Common Stock in Offering | 116,271 | 6,839 | — | |||||||||||||||||||||
Proceeds from Exercises of Stock Options | 22 | — | — | |||||||||||||||||||||
Cash Paid to Repurchase Stock Options and Stock Warrants | — | (70 | ) | (2,552 | ) | — | — | (70 | ) | |||||||||||||||
Cash Dividends Paid | — | (3,853 | ) | (11,574 | ) | — | — | (3,853 | ) | |||||||||||||||
Proceeds from Long-Term Federal Home Loan Bank Advances and Other Borrowings | — | 250,000 | — | — | — | 250,000 | ||||||||||||||||||
Repayment of Long-Term Federal Home Loan Bank Advances and Other Borrowings | (107,218 | ) | (468 | ) | (443 | ) | (328 | ) | (107,218 | ) | (468 | ) | ||||||||||||
Net Change in Short-Term Federal Home Loan Bank Advances and Other Borrowings | (160,040 | ) | (313,713 | ) | 318,546 | (177 | ) | (160,040 | ) | (313,713 | ) | |||||||||||||
Net Cash (Used In) Provided By Financing Activities | (581,172 | ) | 277 | 312,347 | (166,818 | ) | (581,172 | ) | 277 | |||||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (61,837 | ) | 93,549 | (16,103 | ) | 95,610 | (61,837 | ) | 93,549 | |||||||||||||||
Cash and Cash Equivalents at Beginning of Year | 215,947 | 122,398 | 138,501 | 154,110 | 215,947 | 122,398 | ||||||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | 154,110 | $ | 215,947 | $ | 122,398 | $ | 249,720 | $ | 154,110 | $ | 215,947 | ||||||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||||||||||||||||||
Cash Paid During the Period for: | ||||||||||||||||||||||||
Interest Paid | $ | 88,851 | $ | 107,071 | $ | 129,864 | $ | 35,278 | $ | 88,851 | $ | 107,071 | ||||||||||||
Income Taxes Paid | $ | — | $ | 13,873 | $ | 38,232 | ||||||||||||||||||
Income Taxes (Refunds) Paid | $ | (49,971 | ) | $ | — | $ | 13,873 | |||||||||||||||||
Non-Cash Activities: | ||||||||||||||||||||||||
Stock Issued for Business Acquisition | $ | 46 | $ | 293 | $ | 2,198 | $ | — | $ | 46 | $ | 293 | ||||||||||||
Transfer of Loans to Other Real Estate Owned | $ | 38,726 | $ | 2,988 | $ | 1,367 | $ | 12,992 | $ | 38,726 | $ | 2,988 | ||||||||||||
Loan Provided in the Sale of Other Real Estate Owned | $ | 5,000 | $ | — | $ | — | ||||||||||||||||||
Transfer of Loans to Loans Held for Sale | $ | 155,176 | $ | — | $ | — | ||||||||||||||||||
Loans Provided in the Sale of Other Real Estate Owned | $ | 1,217 | $ | 5,000 | $ | — | ||||||||||||||||||
Issuance of Stock Warrants in Connection with Common Stock Offering | $ | 1,962 | $ | — | $ | — | ||||||||||||||||||
Transfer of Equity Securities from Other Assets to Securities Available for Sale | $ | — | $ | 511 | $ | — | $ | — | $ | — | $ | 511 |
88
99
89
Ratio of Tangible Shareholder’s | ||
Date | Equity to Total Tangible Assets | |
By July 31, 2010 | ||
From December 31, 2010 and Until the Order is Terminated | Not Less Than 9.0 Percent Not Less Than 9.5 Percent |
100
90
101
Minimum | Minimum to Be | |||||||||||||||||||||||
Regulatory | Categorized as | |||||||||||||||||||||||
Actual | Requirement | “Well Capitalized” | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
December 31, 2010 | ||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets): | ||||||||||||||||||||||||
Hanmi Financial | $ | 284,345 | 12.32 | % | $ | 184,570 | 8.00 | % | N/A | N/A | ||||||||||||||
Hanmi Bank | $ | 281,380 | 12.22 | % | $ | 184,187 | 8.00 | % | $ | 230,234 | 10.00 | % | ||||||||||||
Tier 1 Capital (to Risk-Weighted Assets): | ||||||||||||||||||||||||
Hanmi Financial | $ | 232,676 | 10.09 | % | $ | 92,285 | 4.00 | % | N/A | N/A | ||||||||||||||
Hanmi Bank | $ | 251,111 | 10.91 | % | $ | 92,094 | 4.00 | % | $ | 138,141 | 6.00 | % | ||||||||||||
Tier 1 Capital (to Average Assets): | ||||||||||||||||||||||||
Hanmi Financial | $ | 232,676 | 7.90 | % | $ | 117,774 | 4.00 | % | N/A | N/A | ||||||||||||||
Hanmi Bank | $ | 251,111 | 8.55 | % | $ | 117,494 | 4.00 | % | $ | 146,868 | 5.00 | % | ||||||||||||
December 31, 2009 | ||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets): | ||||||||||||||||||||||||
Hanmi Financial | $ | 262,796 | 9.12 | % | $ | 230,614 | 8.00 | % | N/A | N/A | ||||||||||||||
Hanmi Bank | $ | 261,194 | 9.07 | % | $ | 230,261 | 8.00 | % | $ | 287,826 | 10.00 | % | ||||||||||||
Tier 1 Capital (to Risk-Weighted Assets): | ||||||||||||||||||||||||
Hanmi Financial | $ | 194,749 | 6.76 | % | $ | 115,307 | 4.00 | % | N/A | N/A | ||||||||||||||
Hanmi Bank | $ | 223,700 | 7.77 | % | $ | 115,131 | 4.00 | % | $ | 172,696 | 6.00 | % | ||||||||||||
Tier 1 Capital (to Average Assets): | ||||||||||||||||||||||||
Hanmi Financial | $ | 194,749 | 5.82 | % | $ | 133,945 | 4.00 | % | N/A | N/A | ||||||||||||||
Hanmi Bank | $ | 223,700 | 6.69 | % | $ | 133,770 | 4.00 | % | $ | 167,212 | 5.00 | % |
102
91
103
92
104
93
1. | Securities that we have the positive intent and ability to hold to maturity are classified as | ||
2. | Securities that are bought and held principally for the purpose of selling them in the near future are classified as “trading securities” and reported at fair value. Unrealized gains and losses are recognized in earnings; and | ||
3. | Securities not classified asheld-to-maturity or trading securities are classified as “available for sale” and reported at fair value. Unrealized gains and losses are reported as a separate component of stockholders’ equity as accumulated other comprehensive income, net of income taxes. |
105
94
106
107
95
108
109
1. | the present value of the expected future cash flows, discounted at the loan’s effective interest rate; or | ||
2. | the loan’s observable fair value; or | ||
3. | the fair value of the collateral, if the loan is collateral-dependent. |
96
Buildings and Improvements | 10 to 30 years | |
Furniture and Equipment | 3 to 7 Years | |
Leasehold Improvements | Term of Lease or Useful Life, Whichever is Shorter | |
Software | 3 Years |
110
97
111
112
98
113
99
114
100
115
101
102
116
117
103
118
119
104
• | Level 1 | Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. | ||
• | ||||
Level 2 | Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. | |||
• | ||||
Level 3 | Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. |
120
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Significant | |||||||||||||||||||||||||||||
Significant | Observable | |||||||||||||||||||||||||||||||
Observable | Inputs With | |||||||||||||||||||||||||||||||
Inputs With | Quoted Prices in | No Active | ||||||||||||||||||||||||||||||
Quoted Prices in | No Active | Active Markets | Market With | Significant | Balance as of | |||||||||||||||||||||||||||
Active Markets | Market With | Significant | Balance as of | for Identical | Identical | Unobservable | December 31, | |||||||||||||||||||||||||
for Identical | Identical | Unobservable | December 31, | Assets | Characteristics | Inputs | 2010 | |||||||||||||||||||||||||
Assets | Characteristics | Inputs | 2009 | (In Thousands) | ||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||||||||||||||
Mortgage-Backed Securities | $ | — | $ | 66,332 | $ | — | $ | 66,332 | ||||||||||||||||||||||||
Debt Securities Available for Sale: | ||||||||||||||||||||||||||||||||
Residential Mortgage-Backed Securities | $ | — | $ | 109,842 | $ | — | $ | 109,842 | ||||||||||||||||||||||||
U.S. Government Agency Securities | 32,763 | — | — | 32,763 | 113,334 | — | — | 113,334 | ||||||||||||||||||||||||
Collateralized Mortgage Obligations | — | 12,789 | — | 12,789 | — | 137,193 | — | 137,193 | ||||||||||||||||||||||||
Municipal Bonds | — | 21,028 | — | 21,028 | ||||||||||||||||||||||||||||
Asset-Backed Securities | — | 8,188 | — | 8,188 | — | 7,384 | — | 7,384 | ||||||||||||||||||||||||
Corporate Bonds | — | 20,205 | — | 20,205 | ||||||||||||||||||||||||||||
Other Securities | — | 2,937 | 1,258 | 4,195 | — | 3,259 | — | 3,259 | ||||||||||||||||||||||||
Municipal Bonds | — | 7,359 | — | 7,359 | ||||||||||||||||||||||||||||
Equity Securities | 794 | — | — | 794 | ||||||||||||||||||||||||||||
Total Debt Securities Available for Sale | $ | 113.334 | $ | 298,911 | $ | — | $ | 412,245 | ||||||||||||||||||||||||
Equity Securities Available for Sale: | ||||||||||||||||||||||||||||||||
Financial Services Industry | $ | 873 | — | — | $ | 873 | ||||||||||||||||||||||||||
Total Equity Securities Available for Sale | $ | 873 | $ | — | $ | — | $ | 873 | ||||||||||||||||||||||||
Total Securities Available for Sale | $ | 33,557 | $ | 97,605 | $ | 1,258 | $ | 132,420 | $ | 114,207 | $ | 298,911 | $ | — | $ | 413,118 | ||||||||||||||||
Servicing Assets | $ | — | $ | — | $ | 3,842 | $ | 3,842 | ||||||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||||||||||||
Servicing Liabilities | $ | — | $ | — | $ | 216 | $ | 216 | ||||||||||||||||||||||||
Stock Warrants | $ | — | $ | — | $ | 1,600 | $ | 1,600 |
105
121
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||
Realized and | ||||||||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||||||||
Beginning | Realized and | Gains or Losses | Ending | |||||||||||||||||||||||||
Balance as of | Purchases, | Unrealized | in Other | Transfers | Balance as of | |||||||||||||||||||||||
January 1, | Issuances and | Gains or Losses | Comprehensive | In and/or Out | December 31, | |||||||||||||||||||||||
2009 | Settlements | in Earnings | Income | of Level 3 | 2009 | |||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||||||
Investment Securities Available for Sale: | ||||||||||||||||||||||||||||
Other Securities | $ | 1,311 | $ | — | $ | — | $ | (53 | ) | $ | — | $ | 1,258 | |||||||||||||||
Servicing Assets | $ | 3,791 | $ | 874 | $ | (823 | ) | $ | — | $ | — | $ | 3,842 | |||||||||||||||
LIABILITIES: | ||||||||||||||||||||||||||||
Servicing Liabilities | $ | (238 | ) | $ | — | $ | 22 | $ | — | $ | — | $ | 216 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||
Realized and | ||||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||||
Beginning | Realized and | Gains or Losses | Ending | |||||||||||||||||||||
Balance as of | Purchases, | Unrealized | in Other | Transfers | Balance as of | |||||||||||||||||||
January 1, | Issuances and | Gains or Losses | Comprehensive | In and/or Out | December 31, | |||||||||||||||||||
2010 | Settlements | in Earnings | Income | of Level 3 | 2010 | |||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||||
Stock Warrants | $ | — | $ | (1,962) | $ | 362 | $ | — | $ | — | $ | (1,600) |
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Significant | |||||||||||||||||||||||||||||
Significant | Observable | |||||||||||||||||||||||||||||||
Observable | Inputs With | |||||||||||||||||||||||||||||||
Inputs With | Quoted Prices in | No Active | ||||||||||||||||||||||||||||||
Quoted Prices in | No Active | Active Markets | Market With | Significant | Losses During the | |||||||||||||||||||||||||||
Active Markets | Market With | Significant | Balance as of | for Identical | Identical | Unobservable | Year Ended | |||||||||||||||||||||||||
for Identical | Identical | Unobservable | December 31, | Assets | Characteristics | Inputs | December 31, 2010 | |||||||||||||||||||||||||
Assets | Characteristics | Inputs | 2009 | (In Thousands) | ||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||||||||||
Loans Held for Sale | $ | — | $ | 5,010 | $ | — | $ | 5,010 | ||||||||||||||||||||||||
Nonperforming Loans Held for Sale | $ | — | $ | — | $ | 26,591 | (1) | $ | 24,397 | |||||||||||||||||||||||
Impaired Loans | $ | — | $ | 163,529 | $ | 16,519 | $ | 180,048 | $ | — | $ | — | $ | 162,593 | (2) | $ | 45,243 | |||||||||||||||
Other Real Estate Owned | $ | — | $ | 26,306 | $ | — | $ | 26,306 | $ | — | $ | — | $ | 4,089 | (3) | $ | 4,484 | |||||||||||||||
Other Intangible Assets | $ | — | $ | 3,382 | $ | — | $ | 3,382 |
(1) | Includes commercial property loans of $2.3 million, construction loans of $1.4 million, commercial term loan of $14.9 million, and SBA loans of $8.0 million. | |
(2) | Includes real estate loans of $64.6 million, commercial and industrial loans of $97.3 million, and consumer loans of $704,000 . | |
(3) | Includes properties from the foreclosure of real estate loans of $1.1 million and commercial and industrial loans of $3.0 million. |
106
122
December 31, 2009 | December 31, 2008 | December 31, 2010 | December 31, 2009 | |||||||||||||||||||||||||||||
Carrying | Estimated | Carrying | Estimated | Carrying | Estimated | Carrying | Estimated | |||||||||||||||||||||||||
or Contract | Fair | or Contract | Fair | or Contract | Fair | or Contract | Fair | |||||||||||||||||||||||||
Amount | Value | Amount | Value | Amount | Value | Amount | Value | |||||||||||||||||||||||||
(In Thousands) | (In Thousands) | |||||||||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||||||
FINANCIAL ASSETS: | ||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 154,110 | $ | 154,110 | $ | 215,947 | $ | 215,947 | $ | 249,720 | $ | 249,720 | $ | 154,110 | $ | 154,110 | ||||||||||||||||
Investment Securities Held to Maturity | 869 | 871 | 910 | 910 | 845 | 847 | 869 | 871 | ||||||||||||||||||||||||
Investment Securities Available for Sale | 132,420 | 132,420 | 196,207 | 196,207 | 413,118 | 413,118 | 132,420 | 132,420 | ||||||||||||||||||||||||
Loans Receivable, Net of Allowance for Loan Losses | 2,674,064 | 2,573,080 | 3,251,311 | 3,246,955 | 2,121,067 | 2,061,988 | 2,674,064 | 2,573,080 | ||||||||||||||||||||||||
Accrued Interest Receivable | 9,492 | 9,492 | 12,347 | 12,347 | 8,048 | 8,048 | 9,492 | 9,492 | ||||||||||||||||||||||||
Investment in Federal Home Loan Bank Stock | 30,697 | 30,697 | 30,697 | 30,697 | 27,282 | 27,282 | 30,697 | 30,697 | ||||||||||||||||||||||||
Investment in Federal Reserve Bank Stock | 7,878 | 7,878 | 10,228 | 10,228 | 7,449 | 7,449 | 7,878 | 7,878 | ||||||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||||||
FINANCIAL LIABILITIES: | ||||||||||||||||||||||||||||||||
Noninterest-Bearing Deposits | 556,306 | 556,306 | 536,944 | 536,944 | 546,815 | 546,815 | 556,306 | 556,306 | ||||||||||||||||||||||||
Interest-Bearing Deposits | 2,193,022 | 2,197,866 | 2,533,136 | 2,538,394 | 1,919,906 | 1,927,314 | 2,193,022 | 2,197,866 | ||||||||||||||||||||||||
Borrowings | 236,453 | 237,354 | 505,389 | 506,429 | 237,626 | 233,077 | 236,453 | 237,354 | ||||||||||||||||||||||||
Accrued Interest Payable | 12,606 | 12,606 | 18,539 | 18,539 | 15,966 | 15,966 | 12,606 | 12,606 | ||||||||||||||||||||||||
Off-Balance Sheet Items: | ||||||||||||||||||||||||||||||||
OFF-BALANCE SHEET ITEMS: | ||||||||||||||||||||||||||||||||
Commitments to Extend Credit | 262,821 | 177 | 386,785 | 384 | 178,424 | 130 | 262,821 | 177 | ||||||||||||||||||||||||
Standby Letters of Credit | 17,225 | 37 | 47,289 | 194 | 15,226 | 50 | 17,225 | 37 |
123
107
124
Gross | Gross | Estimated | Gross | Gross | Estimated | |||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||||||
Cost | Gain | Loss | Value | |||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
December 31, 2010: | ||||||||||||||||||||||||||||||||
Municipal Bonds | $ | 696 | $ | — | $ | — | $ | 696 | ||||||||||||||||||||||||
Mortgage-Backed Securities(1) | 149 | 2 | — | 151 | ||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||||||
Cost | Gain | Loss | Value | $ | 845 | $ | 2 | $ | — | $ | 847 | |||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
December 31, 2009: | ||||||||||||||||||||||||||||||||
Municipal Bonds | $ | 696 | $ | — | $ | — | $ | 696 | $ | 696 | $ | — | $ | — | $ | 696 | ||||||||||||||||
Mortgage-Backed Securities(1) | 173 | 2 | — | 175 | 173 | 2 | — | 175 | ||||||||||||||||||||||||
$ | 869 | $ | 2 | $ | — | $ | 871 | |||||||||||||||||||||||||
$ | 869 | $ | 2 | $ | — | $ | 871 | |||||||||||||||||||||||||
December 31, 2008: | ||||||||||||||||||||||||||||||||
Municipal Bonds | $ | 695 | $ | — | $ | — | $ | 695 | ||||||||||||||||||||||||
Mortgage-Backed Securities(1) | 215 | — | — | 215 | ||||||||||||||||||||||||||||
$ | 910 | $ | — | $ | — | $ | 910 | |||||||||||||||||||||||||
(1) | Collateralized by residential mortgages and guaranteed by U.S. government sponsored entities. |
108
Gross | Gross | Estimated | Gross | Gross | Estimated | |||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||||||
Cost | Gain | Loss | Value | |||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
December 31, 2010: | ||||||||||||||||||||||||||||||||
Mortgage-Backed Securities(1) | $ | 108,436 | $ | 2,137 | $ | 731 | $ | 109,842 | ||||||||||||||||||||||||
Collateralized Mortgage Obligations(1) | 139,053 | 470 | 2,330 | 137,193 | ||||||||||||||||||||||||||||
U.S. Government Agency Securities | 114,066 | 98 | 830 | 113,334 | ||||||||||||||||||||||||||||
Municipal Bonds | 22,420 | 48 | 1,440 | 21,028 | ||||||||||||||||||||||||||||
Corporate Bonds | 20,449 | 13 | 257 | 20,205 | ||||||||||||||||||||||||||||
Asset-Backed Securities | 7,115 | 269 | — | 7,384 | ||||||||||||||||||||||||||||
Other Securities | 3,305 | — | 46 | 3,259 | ||||||||||||||||||||||||||||
Equity Securities | 647 | 226 | — | 873 | ||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||||||
Cost | Gain | Loss | Value | $ | 415,491 | $ | 3,261 | $ | 5,634 | $ | 413,118 | |||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
December 31, 2009: | ||||||||||||||||||||||||||||||||
Mortgage-Backed Securities(1) | $ | 65,218 | $ | 1,258 | $ | 144 | $ | 66,332 | $ | 65,218 | $ | 1,258 | $ | 144 | $ | 66,332 | ||||||||||||||||
U.S. Government Agency Securities | 33,325 | 562 | 32,763 | 33,325 | — | 562 | 32,763 | |||||||||||||||||||||||||
Collateralized Mortgage Obligations(2) | 12,520 | 269 | — | 12,789 | ||||||||||||||||||||||||||||
Collateralized Mortgage Obligations(1) | 12,520 | 269 | — | 12,789 | ||||||||||||||||||||||||||||
Asset-Backed Securities | 8,127 | 61 | — | 8,188 | 8,127 | 61 | — | 8,188 | ||||||||||||||||||||||||
Municipal Bonds | 7,369 | 82 | 92 | 7,359 | 7,369 | 82 | 92 | 7,359 | ||||||||||||||||||||||||
Other Securities | 3,925 | 332 | 62 | 4,195 | 3,925 | 332 | 62 | 4,195 | ||||||||||||||||||||||||
Equity Securities | 511 | 283 | — | 794 | 511 | 283 | — | 794 | ||||||||||||||||||||||||
$ | 130,995 | $ | 2,285 | $ | 860 | $ | 132,420 | |||||||||||||||||||||||||
$ | 130,995 | $ | 2,285 | $ | 860 | $ | 132,420 | |||||||||||||||||||||||||
December 31, 2008: | ||||||||||||||||||||||||||||||||
Mortgage-Backed Securities(1) | $ | 77,515 | $ | 1,536 | $ | 191 | $ | 78,860 | ||||||||||||||||||||||||
U.S. Government Agency Securities | 17,580 | 120 | — | 17,700 | ||||||||||||||||||||||||||||
Collateralized Mortgage Obligations(2) | 36,204 | 137 | 179 | 36,162 | ||||||||||||||||||||||||||||
Municipal Bonds | 58,987 | 413 | 1,087 | 58,313 | ||||||||||||||||||||||||||||
Other Securities | 3,925 | 386 | 112 | 4,199 | ||||||||||||||||||||||||||||
Equity Securities | 511 | 293 | — | 804 | ||||||||||||||||||||||||||||
Corporate Bonds(3) | 355 | — | 186 | 169 | ||||||||||||||||||||||||||||
$ | 195,077 | $ | 2,885 | $ | 1,755 | $ | 196,207 | |||||||||||||||||||||||||
(1) | Collateralized by residential mortgages and guaranteed by U.S. government sponsored entities. | |
125
Available for Sale | Held to Maturity | |||||||||||||||
Amortized | Estimated | Amortized | Estimated | |||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||
(In Thousands) | ||||||||||||||||
Within One Year | $ | 3,925 | $ | 4,195 | $ | — | $ | — | ||||||||
Over One Year Through Five Years | — | — | — | — | ||||||||||||
Over Five Years Through Ten Years | 18,308 | 18,096 | 696 | 696 | ||||||||||||
Over Ten Years | 30,513 | 30,214 | — | — | ||||||||||||
Mortgage-Backed Securities | 65,218 | 66,332 | 173 | 175 | ||||||||||||
Collateralized Mortgage Obligations | 12,520 | 12,789 | — | — | ||||||||||||
Equity Securities | 511 | 794 | — | — | ||||||||||||
$ | 130,995 | $ | 132,420 | $ | 869 | $ | 871 | |||||||||
109
Available for Sale | Held to Maturity | |||||||||||||||
Amortized | Estimated | Amortized | Estimated | |||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||
(In Thousands) | ||||||||||||||||
Within One Year | $ | — | $ | — | $ | — | $ | — | ||||||||
Over One Year Through Five Years | 114,447 | 113,525 | 696 | 696 | ||||||||||||
Over Five Years Through Ten Years | 31,074 | 31,025 | — | — | ||||||||||||
Over Ten Years | 21,834 | 20,660 | — | — | ||||||||||||
Mortgage-Backed Securities | 108,436 | 109,842 | 149 | 151 | ||||||||||||
Collateralized Mortgage Obligations | 139,053 | 137,193 | — | — | ||||||||||||
Equity Securities | 647 | 873 | — | — | ||||||||||||
$ | 415,491 | $ | 413,118 | $ | 845 | $ | 847 | |||||||||
126
Holding Period | Holding Period | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross | Estimated | Number | Gross | Estimated | Number | Gross | Estimated | Number | Gross | Estimated | Number | Gross | Estimated | Number | Gross | Estimated | Number | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Unrealized | Fair | of | Unrealized | Fair | of | Unrealized | Fair | of | Unrealized | Fair | of | Unrealized | Fair | of | Unrealized | Fair | of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available for Sale | Losses | Value | Securities | Losses | Value | Securities | Losses | Value | Securities | Losses | Value | Securities | Losses | Value | Securities | Losses | Value | Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2010: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Backed Securities | $ | 731 | $ | 62,738 | 16 | $ | — | $ | — | — | $ | 731 | $ | 62,738 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized Mortgage Obligations | 2,330 | 99,993 | 20 | — | — | — | 2,330 | 99,993 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal Bonds | 1,440 | 16,907 | 11 | — | — | — | 1,440 | 16,907 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government Agency Securities | 830 | 69,266 | 14 | — | — | — | 830 | 69,266 | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Securities | 3 | 1,997 | 2 | 43 | 957 | 1 | 46 | 2,954 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Bonds | 257 | 17,210 | 5 | — | — | — | 257 | 17,210 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 5,591 | $ | 268,111 | 68 | $ | 43 | $ | 957 | 1 | $ | 5,634 | $ | 269,068 | 69 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2009: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Backed Securities | $ | 144 | $ | 14,584 | 3 | $ | — | $ | — | — | $ | 144 | $ | 14,584 | 3 | $ | 144 | $ | 14,584 | 3 | $ | — | $ | — | — | $ | 144 | $ | 14,584 | 3 | |||||||||||||||||||||||||||||||||||||||||||||
Municipal Bonds | 12 | 303 | 1 | 80 | 793 | 1 | 92 | 1,096 | 2 | 12 | 303 | 1 | 80 | 793 | 1 | 92 | 1,096 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government Agency Securities | 562 | 32,764 | 6 | — | — | — | 562 | 32,764 | 6 | 562 | 32,764 | 6 | — | — | — | 562 | 32,764 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Securities | 24 | 1,976 | 2 | 39 | 961 | 1 | 63 | 2,937 | 3 | 24 | 1,976 | 2 | 38 | 961 | 1 | 62 | 2,937 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 742 | $ | 49,627 | 12 | $ | 118 | $ | 1,754 | 2 | $ | 860 | $ | 51,381 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 742 | $ | 49,627 | 12 | $ | 119 | $ | 1,754 | 2 | $ | 861 | $ | 51,381 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2008: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-Backed Securities | $ | 158 | $ | 10,631 | 42 | $ | 33 | $ | 5,277 | 4 | $ | 191 | $ | 15,908 | 46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal Bonds | 968 | 35,614 | 66 | 119 | 1,749 | 4 | 1,087 | 37,363 | 70 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized Mortgage Obligations | 36 | 4,569 | 4 | 143 | 5,903 | 4 | 179 | 10,472 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Securities | 72 | 929 | 1 | 40 | 1,960 | 2 | 112 | 2,889 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Bonds | 186 | 169 | 1 | — | — | — | 186 | 169 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 1,420 | $ | 51,912 | 114 | $ | 335 | $ | 14,889 | 14 | $ | 1,755 | $ | 66,801 | 128 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
127
110
Year Ended December 31, | ||||||||||||||||||||||||
Year Ended December 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | (In Thousands) | |||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
Gross Realized Gains on Sales of Investment Securities | $ | 2,327 | $ | 618 | $ | — | $ | 228 | $ | 2,327 | $ | 618 | ||||||||||||
Gross Realized Losses on Sales of Investment Securities | (494 | ) | (541 | ) | — | (106 | ) | (494 | ) | (541 | ) | |||||||||||||
Net Realized Gains on Sales of Investment Securities | $ | 1,833 | $ | 77 | $ | — | $ | 122 | $ | 1,833 | $ | 77 | ||||||||||||
Proceeds from Sales of Investment Securities | $ | 93,685 | $ | 28,501 | $ | — | $ | 31,832 | $ | 93,685 | $ | 28,501 | ||||||||||||
Tax Expense on Sales of Investment Securities | $ | 771 | $ | 32 | $ | — | $ | 52 | $ | 771 | $ | 32 |
128
111
129
December 31, | ||||||||||||||||
December 31, | 2010 | 2009 | ||||||||||||||
2009 | 2008 | (In Thousands) | ||||||||||||||
(In Thousands) | ||||||||||||||||
Real Estate Loans: | ||||||||||||||||
Commercial Property | $ | 839,598 | $ | 908,970 | $ | 729,222 | $ | 839,598 | ||||||||
Construction | 126,350 | 178,783 | 60,995 | 126,350 | ||||||||||||
Residential Property | 77,149 | 92,361 | 62,645 | 77,149 | ||||||||||||
Total Real Estate Loans | 1,043,097 | 1,180,114 | 852,862 | 1,043,097 | ||||||||||||
Commercial and Industrial Loans: | ||||||||||||||||
Commercial and Industrial Loans:(1) | ||||||||||||||||
Commercial Term Loans | 1,420,034 | 1,611,449 | 1,118,999 | 1,420,034 | ||||||||||||
Commercial Lines of Credit | 101,159 | 214,699 | 59,056 | 101,159 | ||||||||||||
SBA Loans | 134,521 | 140,989 | 105,688 | 134,521 | ||||||||||||
International Loans | 53,488 | 95,185 | 44,167 | 53,488 | ||||||||||||
Total Commercial and Industrial Loans | 1,709,202 | 2,062,322 | 1,327,910 | 1,709,202 | ||||||||||||
Consumer Loans | 63,303 | 83,525 | 50,300 | 63,303 | ||||||||||||
Total Gross Loans | 2,815,602 | 3,325,961 | 2,231,072 | 2,815,602 | ||||||||||||
Allowance for Loans Losses | (144,996 | ) | (70,986 | ) | (146,059 | ) | (144,996 | ) | ||||||||
Deferred Loan Fees | (1,552 | ) | (1,260 | ) | (566 | ) | (1,552 | ) | ||||||||
Loans Receivable, Net | $ | 2,669,054 | $ | 3,253,715 | $ | 2,084,447 | $ | 2,669,054 | ||||||||
(1) | Commercial and industrial loans include owner-occupied property loans of $894.8 million and $1.12 billion as of December 31, 2010 and December 31, 2009, respectively. |
130
As of and for the Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
As of and for the Year Ended December 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | Allowance | Allowance | Allowance | |||||||||||||||||||||||||||||||||||||||||||
Allowance | Allowance | Allowance | for Off- | for Off- | for Off- | |||||||||||||||||||||||||||||||||||||||||||
for Off- | for Off- | for Off- | Allowance | Balance | Allowance | Balance | Allowance | Balance | ||||||||||||||||||||||||||||||||||||||||
Allowance | Balance | Allowance | Balance | Allowance | Balance | for Loan | Sheet | for Loan | Sheet | for Loan | Sheet | |||||||||||||||||||||||||||||||||||||
for Loan | Sheet | for Loan | Sheet | for Loan | Sheet | Losses | Items | Losses | Items | Losses | Items | |||||||||||||||||||||||||||||||||||||
Losses | Items | Losses | Items | Losses | Items | (In Thousands) | ||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at Beginning of Year | $ | 70,986 | $ | 4,096 | $ | 43,611 | $ | 1,765 | $ | 27,557 | $ | 2,130 | $ | 144,996 | $ | 3,876 | $ | 70,986 | $ | 4,096 | $ | 43,611 | $ | 1,765 | ||||||||||||||||||||||||
Provision Charged to Operating Expense | 196,607 | (220 | ) | 73,345 | 2,331 | 38,688 | (365 | ) | 122,955 | (459 | ) | 196,607 | (220 | ) | 73,345 | 2,331 | ||||||||||||||||||||||||||||||||
Loans Charged Off | (125,380 | ) | — | (48,152 | ) | — | (23,330 | ) | — | (131,823 | ) | — | (125,380 | ) | — | (48,152 | ) | — | ||||||||||||||||||||||||||||||
Recoveries | 2,783 | — | 2,182 | — | 696 | — | 9,931 | — | 2,783 | — | 2,182 | — | ||||||||||||||||||||||||||||||||||||
Balance at End of Year | $ | 144,996 | $ | 3,876 | $ | 70,986 | $ | 4,096 | $ | 43,611 | $ | 1,765 | $ | 146,059 | $ | 3,417 | $ | 144,996 | $ | 3,876 | $ | 70,986 | $ | 4,096 | ||||||||||||||||||||||||
112
131
As of and for the | ||||||||||||
Year Ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
(In Thousands) | ||||||||||||
Recorded Investment With Related Allowance | $ | 91,371 | $ | 71,448 | $ | 38,930 | ||||||
Recorded Investment With No Related Allowance | 109,363 | 49,945 | 15,202 | |||||||||
Allowance on Impaired Loans | (23,148 | ) | (18,157 | ) | (11,829 | ) | ||||||
Net Recorded Investment in Impaired Loans | $ | 177,586 | $ | 103,236 | $ | 42,303 | ||||||
Average Total Recorded Investment in Impaired Loans | $ | 281,980 | $ | 149,680 | $ | 61,249 | ||||||
Year Ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
(In Thousands) | ||||||||||||
Interest Income That Would Have Been Recognized Had Impaired Loans Performed in Accordance With Their Original Terms | $ | 17,471 | $ | 7,327 | $ | 4,672 | ||||||
Less: Interest Income Recognized on Impaired Loans on a Cash Basis | (9,569 | ) | (5,422 | ) | (3,705 | ) | ||||||
Interest Foregone on Impaired Loans | $ | 7,902 | $ | 1,905 | $ | 967 | ||||||
December 31, | ||||||||
2009 | 2008 | |||||||
(In Thousands) | ||||||||
Non-Accrual Loans | $ | 219,000 | $ | 120,823 | ||||
Loans 90 Days or More Past Due and Still Accruing | 67 | 1,075 | ||||||
Total Non-Performing Loans | 219,067 | 121,898 | ||||||
Other Real Estate Owned | 26,306 | 823 | ||||||
Total Non-Performing Assets | $ | 245,373 | $ | 122,721 | ||||
Commercial | ||||||||||||||||||||
Real Estate | and Industrial | Consumer | Unallocated | Total | ||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||
2010 | ||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||
Beginning Balance | $ | 30,081 | $ | 112,225 | $ | 2,690 | $ | — | $ | 144,996 | ||||||||||
Charge-Offs | 31,514 | 99,037 | 1,272 | — | 131,823 | |||||||||||||||
Recoveries on Loans Previously Charged Off | 3,131 | 6,623 | 177 | — | 9,931 | |||||||||||||||
Provision | 31,068 | 89,175 | 484 | 2,228 | 122,955 | |||||||||||||||
Ending Balance | $ | 32,766 | $ | 108,986 | $ | 2,079 | $ | 2,228 | $ | 146,059 | ||||||||||
Ending Balance: Individually Evaluated for Impairment | $ | 3,342 | $ | 25,714 | $ | 393 | $ | — | $ | 29,449 | ||||||||||
Ending Balance: Collectively Evaluated for Impairment | $ | 29,423 | $ | 83,272 | $ | 1,686 | $ | 2,228 | $ | 116,611 | ||||||||||
Loans Receivable: | ||||||||||||||||||||
Ending Balance | $ | 852,861 | $ | 1,327,911 | $ | 50,300 | $ | — | $ | 2,231,072 | ||||||||||
Ending Balance: Individually Evaluated for Impairment | $ | 83,788 | $ | 112,101 | $ | 934 | $ | — | $ | 196,823 | ||||||||||
Ending Balance: Collectively Evaluated for Impairment | $ | 769,073 | $ | 1,215,810 | $ | 49,366 | $ | — | $ | 2,034,249 | ||||||||||
2009 | ||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||
Beginning Balance | $ | 10,136 | $ | 58,866 | $ | 1,584 | $ | 400 | $ | 70,986 | ||||||||||
Charge-Offs | 27,262 | 95,768 | 2,350 | — | 125,380 | |||||||||||||||
Recoveries on Loans Previously Charged Off | 5 | 2,650 | 128 | — | 2,783 | |||||||||||||||
Provision | 47,202 | 146,477 | 3,328 | (400 | ) | 196,607 | ||||||||||||||
Ending Balance | $ | 30,081 | $ | 112,225 | $ | 2,690 | $ | — | $ | 144,996 | ||||||||||
Ending Balance: Individually Evaluated for Impairment | $ | 1,596 | $ | 21,029 | $ | 523 | $ | — | $ | 23,148 | ||||||||||
Ending Balance: Collectively Evaluated for Impairment | $ | 28,484 | $ | 91,196 | $ | 2,167 | $ | — | $ | 121,847 | ||||||||||
Loans Receivable: | ||||||||||||||||||||
Ending Balance | $ | 1,043,097 | $ | 1,709,202 | $ | 63,303 | $ | — | $ | 2,815,602 | ||||||||||
Ending Balance: Individually Evaluated for Impairment | $ | 77,353 | $ | 121,788 | $ | 524 | $ | — | $ | 199,665 | ||||||||||
Ending Balance: Collectively Evaluated for Impairment | $ | 965,744 | $ | 1,587,414 | $ | 62,779 | $ | — | $ | 2,615,937 | ||||||||||
113
132
133
134
Pass | Criticized | Classified | ||||||||||||||
(Grade 0-4) | (Grade 5) | (Grade 6-7) | Total Loans | |||||||||||||
(In Thousands) | ||||||||||||||||
December 31, 2010: | ||||||||||||||||
Real Estate Loans: | ||||||||||||||||
Commercial Property | ||||||||||||||||
Retail | $ | 302,696 | $ | 18,507 | $ | 38,568 | $ | 359,771 | ||||||||
Land | 3,845 | — | 37,353 | 41,198 | ||||||||||||
Other | 265,957 | 20,804 | 41,493 | 328,254 | ||||||||||||
Construction | 12,958 | 25,897 | 22,139 | 60,994 | ||||||||||||
Residential Property | 59,329 | — | 3,315 | 62,644 | ||||||||||||
Commercial and Industrial Loans: | ||||||||||||||||
Commercial Term Loans | ||||||||||||||||
Unsecured | 134,709 | 24,620 | 63,739 | 223,068 | ||||||||||||
Secured by Real Estate | 617,200 | 107,645 | 171,086 | 895,931 | ||||||||||||
Commercial Lines of Credit | 40,195 | 8,019 | 10,841 | 59,055 | ||||||||||||
SBA Loans | 68,994 | 731 | 35,965 | 105,690 | ||||||||||||
International Loans | 38,447 | 4,693 | 1,027 | 44,167 | ||||||||||||
Consumer Loans | 48,027 | 347 | 1,926 | 50,300 | ||||||||||||
Total | $ | 1,592,357 | $ | 211,263 | $ | 427,452 | $ | 2,231,072 | ||||||||
December 31, 2009: | ||||||||||||||||
Real Estate Loans: | ||||||||||||||||
Commercial Property | ||||||||||||||||
Retail | $ | 352,021 | $ | 6,105 | $ | 56,914 | $ | 415,040 | ||||||||
Land | 3,357 | 2,638 | 59,654 | 65,649 | ||||||||||||
Other | 306,881 | 10,484 | 41,545 | 358,910 | ||||||||||||
Construction | 90,348 | 16,696 | 19,305 | 126,349 | ||||||||||||
Residential Property | 72,646 | — | 4,503 | 77,149 | ||||||||||||
Commercial and Industrial Loans: | ||||||||||||||||
Commercial Term Loans | ||||||||||||||||
Unsecured | 207,544 | 15,240 | 64,261 | 287,045 | ||||||||||||
Secured by Real Estate | 846,023 | 67,593 | 219,373 | 1,132,989 | ||||||||||||
Commercial Lines of Credit | 74,821 | 14,593 | 11,744 | 101,158 | ||||||||||||
SBA Loans | 98,986 | 1,845 | 33,691 | 134,522 | ||||||||||||
International Loans | 41,680 | 7,404 | 4,404 | 53,488 | ||||||||||||
Consumer Loans | 62,830 | — | 473 | 63,303 | ||||||||||||
Total | $ | 2,157,137 | $ | 142,598 | $ | 515,867 | $ | 2,815,602 | ||||||||
135
Accruing | ||||||||||||||||||||||||||||
90 Days or | 90 Days or | |||||||||||||||||||||||||||
30-59 Days | 60-89 Days | More Past | Total Past | More Past | ||||||||||||||||||||||||
Past Due | Past Due | Due | Due | Current | Total Loans | Due | ||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
December 31, 2010: | ||||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||
Commercial Property | ||||||||||||||||||||||||||||
Retail | $ | — | $ | — | $ | 7,857 | $ | 7,857 | $ | 351,913 | $ | 359,770 | $ | — | ||||||||||||||
Land | — | — | 25,725 | 25,725 | 15,471 | 41,196 | — | |||||||||||||||||||||
Other | — | — | 7,212 | 7,212 | 321,043 | 328,255 | — | |||||||||||||||||||||
Construction | 10,409 | — | 8,477 | 18,886 | 42,108 | 60,994 | — | |||||||||||||||||||||
Residential Property | 522 | — | 1,240 | 1,762 | 60,883 | 62,645 | — | |||||||||||||||||||||
Commercial and Industrial Loans: | ||||||||||||||||||||||||||||
Commercial Term Loans | ||||||||||||||||||||||||||||
Unsecured | 2,208 | 2,781 | 6,842 | 11,831 | 211,237 | 223,068 | — | |||||||||||||||||||||
Secured by Real Estate | 5,111 | 3,720 | 10,530 | 19,361 | 876,570 | 895,931 | — | |||||||||||||||||||||
Commercial Lines of Credit | 454 | — | 1,745 | 2,199 | 56,857 | 59,056 | — | |||||||||||||||||||||
SBA Loans | 2,287 | 8,205 | 13,957 | 24,449 | 81,241 | 105,690 | — | |||||||||||||||||||||
International Loans | — | — | — | — | 44,167 | 44,167 | — | |||||||||||||||||||||
Consumer Loans | 596 | 202 | 865 | 1,663 | 48,637 | 50,300 | — | |||||||||||||||||||||
Total | $ | 21,587 | $ | 14,908 | $ | 84,450 | $ | 120,945 | $ | 2,110,127 | $ | 2,231,072 | $ | — | ||||||||||||||
December 31, 2009: | ||||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||
Commercial Property | ||||||||||||||||||||||||||||
Retail | $ | — | $ | 846 | $ | 16,622 | $ | 17,468 | $ | 397,572 | $ | 415,040 | $ | — | ||||||||||||||
Land | — | — | 8,997 | 8,997 | 56,651 | 65,648 | — | |||||||||||||||||||||
Other | 1,310 | 2,340 | 14,171 | 17,821 | 341,089 | 358,910 | — | |||||||||||||||||||||
Construction | — | — | 15,185 | 15,185 | 111,165 | 126,350 | — | |||||||||||||||||||||
Residential Property | 603 | 751 | 2,111 | 3,465 | 73,684 | 77,149 | — | |||||||||||||||||||||
Commercial and Industrial Loans: | ||||||||||||||||||||||||||||
Commercial Term Loans | ||||||||||||||||||||||||||||
Unsecured | 5,231 | 8,599 | 9,768 | 23,598 | 263,447 | 287,045 | — | |||||||||||||||||||||
Secured by Real Estate | 15,924 | 2,283 | 34,836 | 53,043 | 1,079,946 | 1,132,989 | — | |||||||||||||||||||||
Commercial Lines of Credit | 1,790 | 53 | 1,671 | 3,514 | 97,645 | 101,159 | — | |||||||||||||||||||||
SBA Loans | 5,066 | 11,611 | 24,396 | 41,073 | 93,448 | 134,521 | — | |||||||||||||||||||||
International Loans | — | 594 | — | 594 | 52,894 | 53,488 | — | |||||||||||||||||||||
Consumer Loans | 637 | 245 | 373 | 1,255 | 62,048 | 63,303 | 67 | |||||||||||||||||||||
Total | $ | 30,561 | $ | 27,322 | $ | 128,130 | $ | 186,013 | $ | 2,629,589 | $ | 2,815,602 | $ | 67 | ||||||||||||||
136
137
Unpaid | With No Related | With an | Average | |||||||||||||||||||||
Recorded | Principal | Allowance | Allowance | Related | Recorded | |||||||||||||||||||
Investment | Balance | Recorded | Recorded | Allowance | Investment | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
December 31, 2010: | ||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||
Commercial Property | ||||||||||||||||||||||||
Retail | $ | 17,606 | $ | 18,050 | $ | 6,336 | $ | 11,270 | $ | 1,543 | $ | 21,190 | ||||||||||||
Land | 35,207 | 35,295 | 5,482 | 29,725 | 1,485 | 40,858 | ||||||||||||||||||
Other | 11,357 | 11,476 | 10,210 | 1,147 | 33 | 15,342 | ||||||||||||||||||
Construction | 17,691 | 17,831 | 13,992 | 3,699 | 280 | 12,311 | ||||||||||||||||||
Residential Property | 1,926 | 1,990 | 1,926 | — | — | 2,383 | ||||||||||||||||||
Commercial and Industrial Loans: | ||||||||||||||||||||||||
Commercial Term Loans | ||||||||||||||||||||||||
Unsecured | 17,847 | 18,799 | 6,465 | 11,382 | 10,313 | 18,460 | ||||||||||||||||||
Secured by Real Estate | 80,213 | 81,395 | 35,154 | 45,059 | 11,831 | 101,617 | ||||||||||||||||||
Commercial Lines of Credit | 4,067 | 4,116 | 1,422 | 2,645 | 1,321 | 4,988 | ||||||||||||||||||
SBA Loans | 17,715 | 18,544 | 7,112 | 10,603 | 2,122 | 23,213 | ||||||||||||||||||
International Loans | 127 | 141 | — | 127 | 127 | 397 | ||||||||||||||||||
Consumer Loans | 934 | 951 | 393 | 541 | 393 | 639 | ||||||||||||||||||
Total | $ | 204,690 | $ | 208,588 | $ | 88,492 | $ | 116,198 | $ | 29,448 | $ | 241,398 | ||||||||||||
December 31, 2009: | ||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||
Commercial Property | ||||||||||||||||||||||||
Retail | $ | 19,233 | $ | 19,430 | $ | 17,170 | $ | 2,063 | $ | 120 | $ | 15,834 | ||||||||||||
Land | 22,960 | 22,978 | 19,889 | 3,071 | 461 | 10,801 | ||||||||||||||||||
Other | 16,640 | 16,924 | 14,747 | 1,893 | 176 | 17,283 | ||||||||||||||||||
Construction | 15,185 | 15,204 | 9,823 | 5,362 | 444 | 23,677 | ||||||||||||||||||
Residential Property | 3,335 | 3,459 | 1,989 | 1,346 | 395 | 2,512 | ||||||||||||||||||
Commercial and Industrial Loans: | ||||||||||||||||||||||||
Commercial Term Loans | ||||||||||||||||||||||||
Unsecured | 19,094 | 19,373 | 2,680 | 16,414 | 14,806 | 17,777 | ||||||||||||||||||
Secured by Real Estate | 83,875 | 84,528 | 48,806 | 35,069 | 4,075 | 98,898 | ||||||||||||||||||
Commercial Lines of Credit | 1,906 | 1,951 | 1,345 | 561 | 343 | 2,235 | ||||||||||||||||||
SBA Loans | 20,040 | 20,567 | 10,126 | 9,914 | 1,805 | 17,033 | ||||||||||||||||||
International Loans | 739 | 742 | 739 | — | — | 1,717 | ||||||||||||||||||
Consumer Loans | 524 | 531 | — | 524 | 524 | 890 | ||||||||||||||||||
Total | $ | 203,531 | $ | 205,687 | $ | 127,314 | $ | 76,217 | $ | 23,149 | $ | 208,657 | ||||||||||||
138
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In Thousands) | ||||||||||||
Interest Income That Would Have Been Recognized Had Impaired Loans Performed in Accordance with Their Original Terms | $ | 20,848 | $ | 17,471 | $ | 7,327 | ||||||
Less: Interest Income Recognized on Impaired Loans(1) | (11,473 | ) | (9,569 | ) | (5,422 | ) | ||||||
Interest Foregone on Impaired Loans | $ | 9,375 | $ | 7,902 | $ | 1,905 | ||||||
139
December 31, | ||||||||
2010 | 2009 | |||||||
(In Thousands) | ||||||||
Real Estate Loans: | ||||||||
Commercial Property | ||||||||
Retail | $ | 10,998 | $ | 19,234 | ||||
Land | 25,725 | 22,960 | ||||||
Other | 8,953 | 16,734 | ||||||
Construction | 17,691 | 15,185 | ||||||
Residential Property | 1,926 | 3,335 | ||||||
Commercial and Industrial Loans: | ||||||||
Commercial Term Loans | ||||||||
Unsecured | 17,065 | 24,003 | ||||||
Secured by Real Estate | 31,053 | 78,673 | ||||||
Commercial Lines of Credit | 2,798 | 1,906 | ||||||
SBA Loans | 25,054 | 34,540 | ||||||
International Loans | 127 | 739 | ||||||
Consumer Loans | 1,047 | 622 | ||||||
Total | $ | 142,437 | $ | 217,931 | ||||
December 31, | ||||||||
2010 | 2009 | |||||||
(In Thousands) | ||||||||
Non-Accrual Loans | $ | 142,437 | $ | 217,931 | ||||
Loans 90 Days or More Past Due and Still Accruing | — | 67 | ||||||
Total Non-Performing Loans | 142,437 | 217,998 | ||||||
Other Real Estate Owned | 4,089 | 26,306 | ||||||
Total Non-Performing Assets | $ | 146,526 | $ | 244,304 | ||||
140
December 31, | ||||||||||||||||
December 31, | 2010 | 2009 | ||||||||||||||
2009 | 2008 | (In Thousands) | ||||||||||||||
(In Thousands) | ||||||||||||||||
Balance at Beginning of Year | $ | 3,791 | $ | 4,336 | $ | 3,842 | $ | 3,791 | ||||||||
Additions | 874 | 405 | 81 | 874 | ||||||||||||
Changes in Valuation Allowance | — | 345 | — | — | ||||||||||||
Amortization | (823 | ) | (1,295 | ) | (1,033 | ) | (823 | ) | ||||||||
Balance at End of Year | $ | 3,842 | $ | 3,791 | $ | 2,890 | $ | 3,842 | ||||||||
114
141
December 31, | ||||||||||||||||
December 31, | 2010 | 2009 | ||||||||||||||
2009 | 2008 | (In Thousands) | ||||||||||||||
(In Thousands) | ||||||||||||||||
Land | $ | 6,120 | $ | 6,120 | $ | 6,120 | $ | 6,120 | ||||||||
Buildings and Improvements | 9,035 | 8,790 | 9,115 | 9,035 | ||||||||||||
Furniture and Equipment | 14,468 | 14,528 | 15,377 | 14,468 | ||||||||||||
Leasehold Improvements | 11,240 | 10,956 | 11,238 | 11,240 | ||||||||||||
Software | 862 | 862 | 862 | 862 | ||||||||||||
42,712 | 41,725 | |||||||||||||||
41,725 | 41,256 | |||||||||||||||
Accumulated Depreciation and Amortization | (23,068 | ) | (20,977 | ) | (25,113 | ) | (23,068 | ) | ||||||||
Total Premises and Equipment, Net | $ | 18,657 | $ | 20,279 | $ | 17,599 | $ | 18,657 | ||||||||
As of and for the | |||||||
Year Ended | |||||||
December 31, | |||||||
2009 | 2008 | ||||||
(In Thousands) | |||||||
Balance at Beginning of Year | $ | — | $ | 107,100 | |||
Acquired Goodwill | — | 293 | |||||
Impairment Loss on Goodwill | — | (107,393 | ) | ||||
Balance at End of Year | $ | — | $ | — | |||
115
December 31, 2010 | December 31, 2009 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2009 | December 31, 2008 | Gross | Net | Gross | Net | |||||||||||||||||||||||||||||||||||||||||||||||||||
Gross | Net | Gross | Net | Amortization | Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | ||||||||||||||||||||||||||||||||||||||||||||||
Amortization | Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | Period | Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||||||||||||||||||||||||||||||
Period | Amount | Amortization | Amount | Amount | Amortization | Amount | (In Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Intangible Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Core Deposit Intangible | 8 years | $ | 13,137 | $ | (11,822 | ) | $ | 1,315 | $ | 13,137 | $ | (10,538 | ) | $ | 2,599 | 8 years | $ | 13,137 | $ | (12,687 | ) | $ | 450 | $ | 13,137 | $ | (11,822 | ) | $ | 1,315 | ||||||||||||||||||||||||||
Trade Names | 20 years | 970 | (146 | ) | 824 | 970 | (97 | ) | 873 | 20 years | 970 | (194 | ) | 776 | 970 | (146 | ) | 824 | ||||||||||||||||||||||||||||||||||||||
Client/Insured Relationships | 10 years | 770 | (231 | ) | 539 | 770 | (154 | ) | 616 | 10 years | 770 | (308 | ) | 462 | 770 | (231 | ) | 539 | ||||||||||||||||||||||||||||||||||||||
Non-Compete Agreements | 5 years | 600 | (360 | ) | 240 | 600 | (240 | ) | 360 | 5 years | 600 | (480 | ) | 120 | 600 | (360 | ) | 240 | ||||||||||||||||||||||||||||||||||||||
Carrier Relationships | 15 years | 580 | (116 | ) | 464 | 580 | (78 | ) | 502 | 15 years | 580 | (155 | ) | 425 | 580 | (116 | ) | 464 | ||||||||||||||||||||||||||||||||||||||
Total Other Intangible Assets | $ | 16,057 | $ | (12,675 | ) | $ | 3,382 | $ | 16,057 | $ | (11,107 | ) | $ | 4,950 | $ | 16,057 | $ | (13,824 | ) | $ | 2,233 | $ | 16,057 | $ | (12,675 | ) | $ | 3,382 | ||||||||||||||||||||||||||||
142
Year Ending | ||||||||
December 31, | Amount | Amount | ||||||
(In Thousands) | (In Thousands) | |||||||
2010 | $ | 1,149 | ||||||
2011 | $ | 700 | $ | 700 | ||||
2012 | $ | 198 | $ | 198 | ||||
2013 | $ | 165 | $ | 165 | ||||
2014 | $ | 164 | $ | 164 | ||||
2015 | $ | 164 |
Time | ||||||||||||
Deposits | Other | |||||||||||
Year Ending | of $100,000 | Time | ||||||||||
December 31, | or More | Deposits | Total | |||||||||
(In Thousands) | ||||||||||||
2010 | $ | 812,085 | $ | 577,898 | $ | 1,389,983 | ||||||
2011 | 4,434 | 1,420 | 5,854 | |||||||||
2012 | — | 120 | 120 | |||||||||
2013 | — | — | — | |||||||||
2014 | — | 29 | 29 | |||||||||
Thereafter | — | 5 | 5 | |||||||||
Total | $ | 816,519 | $ | 579,472 | $ | 1,395,991 | ||||||
116
Time Deposits Other Year Ending of $100,000 Time or More Deposits Total (In Thousands) 2011 $ 597,993 $ 211,516 $ 809,509 2012 516,747 71,711 588,458 2013 3,881 1,421 5,302 2014 — 60 60 2015 — 128 128 Thereafter — — — $ 1,118,621 $ 284,836 $ 1,403,457
Year Ended December 31, | ||||||||||||||||||||||||
Year Ended December 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | (In Thousands) | |||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
Savings | $ | 2,328 | $ | 2,093 | $ | 2,004 | $ | 3,439 | $ | 2,328 | $ | 2,093 | ||||||||||||
Money Market Checking and NOW Accounts | 9,786 | 19,909 | 15,446 | 4,936 | 9,786 | 19,909 | ||||||||||||||||||
Time Deposits of $100,000 or More | 34,807 | 43,598 | 75,516 | 19,529 | 34,807 | 43,598 | ||||||||||||||||||
Other Time Deposits | 29,325 | 18,753 | 15,551 | 6,504 | 29,325 | 18,753 | ||||||||||||||||||
Total Interest Expense on Deposits | $ | 76,246 | $ | 84,353 | $ | 108,517 | $ | 34,408 | $ | 76,246 | $ | 84,353 | ||||||||||||
143
December 31, | ||||||||||||||||
December 31, | 2010 | 2009 | ||||||||||||||
2009 | 2008 | (In Thousands) | ||||||||||||||
(In Thousands) | ||||||||||||||||
FHLB Advances | $ | 153,978 | $ | 422,196 | $ | 153,650 | $ | 153,978 | ||||||||
Note Issued to U.S. Treasury | 1,747 | 787 | 1,570 | 1,747 | ||||||||||||
Total FHLB Advances and Other Borrowings | $ | 155,725 | $ | 422,983 | $ | 155,220 | $ | 155,725 | ||||||||
December 31, 2009 | December 31, 2008 | |||||||||||||||
Weighted- | Weighted- | |||||||||||||||
Average | Average | |||||||||||||||
Year of | Interest | Interest | ||||||||||||||
Maturity | Amount | Rate | Amount | Rate | ||||||||||||
(Dollars in Thousands) | ||||||||||||||||
2009 | $ | — | — | $ | 161,000 | 1.71 | % | |||||||||
2010 | — | — | 6,908 | 4.44 | % | |||||||||||
2011 | 150,000 | 0.76 | % | 150,000 | 0.76 | % | ||||||||||
2012 | — | — | — | — | ||||||||||||
2013 | — | — | 100,000 | 0.67 | % | |||||||||||
2014 | 3,978 | 5.27 | % | 4,288 | 5.27 | % | ||||||||||
$ | 153,978 | 0.88 | % | $ | 422,196 | 1.21 | % | |||||||||
117
December 31, 2010 Weighted- Average Interest Amount Rate (Dollars in Thousands) 2011 $ 150,000 0.76 % 2012 — — 2013 — — 2014 3,650 5.27 % $ 153,650 0.87 %
Year Ended December 31, | ||||||||||||||||||||||||
Year Ended December 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | (Dollars in Thousands) | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Weighted-Average Interest Rate at End of Year | 0.88 | % | 1.21 | % | 4.73 | % | 0.87% | 0.88% | 1.21% | |||||||||||||||
Weighted-Average Interest Rate During the Year | 1.32 | % | 2.81 | % | 5.11 | % | 0.88% | 1.32% | 2.81% | |||||||||||||||
Average Balance of FHLB Advances | $ | 257,529 | $ | 498,875 | $ | 237,733 | $ | 158,531 | $ | 257,529 | $ | 498,875 | ||||||||||||
Maximum Amount Outstanding at Any Month-End | $ | 411,156 | $ | 597,472 | $ | 432,664 | $ | 153,951 | $ | 411,156 | $ | 597,472 |
144
118
Trust | Interest | Junior | ||||||||||||||||||||||||||
Preferred | Rate as of | Subordinated | Final | |||||||||||||||||||||||||
Securities | December 31, | Fixed/ | Interest Rate | Debt Owed | Maturity | |||||||||||||||||||||||
Description | Issuance(1) | Outstanding | 2009 | Adjustable | Basis | to Trusts(2) | Date | |||||||||||||||||||||
Hanmi Capital Trust I | 1/8/2004 | $ | 30,000 | 3.15 | % | Adjustable quarterly | 3 month LIBOR + 2.90% | $ | 30,928 | 1/15/2034 | ||||||||||||||||||
Hanmi Capital Trust II | 3/15/2004 | $ | 30,000 | 3.15 | % | Adjustable quarterly | 3 month LIBOR + 2.90% | $ | 30,928 | 3/15/2034 | ||||||||||||||||||
Hanmi Capital Trust III | 4/28/2004 | $ | 20,000 | 2.91 | % | Adjustable quarterly | 3 month LIBOR + 2.63% | $ | 20,619 | 4/30/2034 |
Trust | Interest | Junior | ||||||||||||||||||||
Preferred | Rate as of | Subordinated | Final | |||||||||||||||||||
Securities | December 31, | Fixed/ | Interest Rate | Debt Owed | Maturity | |||||||||||||||||
Description | Issuance(1) | Outstanding | 2009 | Adjustable | Basis | to Trusts(2) | Date | |||||||||||||||
Hanmi Capital Trust I | 1/8/2004 | $ | 30,000 | 3.15 | % | Adjustable quarterly | 3 month LIBOR + 2.90% | $ | 30,928 | 1/15/2034 | ||||||||||||
Hanmi Capital Trust II | 3/15/2004 | $ | 30,000 | 3.15 | % | Adjustable quarterly | 3 month LIBOR + 2.90% | $ | 30,928 | 3/15/2034 | ||||||||||||
Hanmi Capital Trust III | 4/28/2004 | $ | 20,000 | 2.91 | % | Adjustable quarterly | 3 month LIBOR + 2.63% | $ | 20,619 | 4/30/2034 | ||||||||||||
(1) | Each issue of junior subordinated debentures may be redeemed in whole or in part by us after five years from the first interest payment date. | |
(2) | Junior subordinated debt includes the funding cost of $69,000 |
145
119
146
December 31, | December 31, | |||||||
2009 | 2008 | |||||||
(In Thousands) | ||||||||
Unrecognized Tax Benefits at Beginning of Year | $ | 1,437 | $ | 1,032 | ||||
Gross Increases for Tax Positions of Prior Years | 589 | 960 | ||||||
Gross Decreases for Tax Positions of Prior Years | (167 | ) | — | |||||
Increases in Tax Positions for Current Year | 80 | 131 | ||||||
Settlements | — | — | ||||||
Lapse in Statute of Limitations | (120 | ) | (686 | ) | ||||
Unrecognized Tax Benefits at End of Year | $ | 1,819 | $ | 1,437 | ||||
120
December 31, December 31, 2010 2009 (In Thousands) Unrecognized Tax Benefits at Beginning of Year $ 1,819 $ 1,437 Gross Increases for Tax Positions of Prior Years 198 589 Gross Decreases for Tax Positions of Prior Years — (167 ) Increases in Tax Positions for Current Year — 80 Decrease due to FTB Audit result (526 ) — Transfer to current state tax reserve (336 ) — Lapse in Statute of Limitations (200 ) (120 ) $ 955 $ 1,819
147
Year Ended December 31, | ||||||||||||||||||||||||
Year Ended December 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | (In Thousands) | |||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
Current Expense: | ||||||||||||||||||||||||
Federal | $ | (56,829 | ) | $ | 7,020 | $ | 30,074 | $ | (3,224 | ) | $ | (56,829 | ) | $ | 7,020 | |||||||||
State | (312 | ) | 2,879 | 8,846 | (349 | ) | (312 | ) | 2,879 | |||||||||||||||
(3,573 | ) | (57,141 | ) | 9,899 | ||||||||||||||||||||
(57,141 | ) | 9,899 | 38,920 | |||||||||||||||||||||
Deferred Expense: | ||||||||||||||||||||||||
Federal | 18,343 | (7,590 | ) | (10,791 | ) | 3,561 | 18,343 | (7,590 | ) | |||||||||||||||
State | 7,673 | (3,664 | ) | (3,827 | ) | — | 7,673 | (3,664 | ) | |||||||||||||||
3,561 | 26,016 | (11,254 | ) | |||||||||||||||||||||
26,016 | (11,254 | ) | (14,618 | ) | ||||||||||||||||||||
Provision (Benefit) for Income Taxes | $ | (31,125 | ) | $ | (1,355 | ) | $ | 24,302 | $ | (12 | ) | $ | (31,125 | ) | $ | (1,355 | ) | |||||||
121
148
December 31, | ||||||||||||||||
December 31, | 2010 | 2009 | ||||||||||||||
2009 | 2008 | (In thousands) | ||||||||||||||
(In Thousands) | ||||||||||||||||
Deferred Tax Assets: | ||||||||||||||||
Credit Loss Provision | $ | 64,254 | $ | 35,792 | $ | 69,532 | $ | 64,254 | ||||||||
Depreciation | 1,618 | 2,170 | 1,203 | 1,618 | ||||||||||||
NOL | 17,758 | — | ||||||||||||||
Net Operating Loss Carryforward | 39,994 | 17,758 | ||||||||||||||
Unrealized Loss on Securities Available for Sale, Interest-Only Strips | 988 | — | ||||||||||||||
Tax Credit | 587 | 564 | 4,059 | 587 | ||||||||||||
State Taxes | 90 | — | ||||||||||||||
Other | 3,844 | 398 | 4,259 | 3,844 | ||||||||||||
Total Deferred Tax Assets | 88,061 | 38,924 | 120,125 | 88,061 | ||||||||||||
Deferred Tax Liabilities: | ||||||||||||||||
Mark to Market | (32,287 | ) | (1,374 | ) | (21,696 | ) | (32,287 | ) | ||||||||
Purchase Accounting | (4,260 | ) | (4,559 | ) | (3,747 | ) | (4,260 | ) | ||||||||
Unrealized Gain on Securities Available for Sale, Interest-Only Strips and Interest Rate Swaps | (602 | ) | (471 | ) | ||||||||||||
Unrealized Gain on Securities Available for Sale, Interest-Only Strips | — | (602 | ) | |||||||||||||
State Taxes | (53 | ) | (2,337 | ) | — | (53 | ) | |||||||||
Other | (2,017 | ) | (727 | ) | (2,003 | ) | (2,017 | ) | ||||||||
Total Deferred Tax Liabilities | (39,219 | ) | (9,468 | ) | (27,446 | ) | (39,219 | ) | ||||||||
Valuation Allowance | (45,234 | ) | — | (92,679 | ) | (45,234 | ) | |||||||||
Net Deferred Tax Assets | $ | 3,608 | $ | 29,456 | $ | — | $ | 3,608 | ||||||||
149
Year Ended December 31, | ||||||||||||||||||||||||
Year Ended December 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
Federal Statutory Income Tax Rate | 35.0 | % | 35.0 | % | (35.0 | %) | 35.0 | % | 35.0 | % | 35.0 | % | ||||||||||||
State Taxes, Net of Federal Tax Benefits | (3.4 | %) | 0.5 | % | 9.1 | % | (0.1 | )% | (3.4 | )% | 0.5 | % | ||||||||||||
Tax-Exempt Municipal Securities | 0.5 | % | 0.9 | % | (3.0 | %) | 0.1 | % | 0.5 | % | 0.9 | % | ||||||||||||
Tax Credit — Federal | 1.5 | % | 0.7 | % | 0.9 | % | ||||||||||||||||||
Other | 1.0 | % | 1.2 | % | (4.3 | %) | 1.6 | % | 0.3 | % | 0.3 | % | ||||||||||||
Valuation Allowance | (12.8 | %) | — | — | (38.0 | )% | (12.8 | )% | — | |||||||||||||||
Impairment Loss on Goodwill | — | (36.3 | %) | 99.9 | % | — | — | (36.3 | )% | |||||||||||||||
Effective Tax Rate | 20.3 | % | 1.3 | % | 66.7 | % | 0.1 | % | 20.3 | % | 1.3 | % | ||||||||||||
122
Year Ended December 31, | ||||||||||||||||||||||||
Year Ended December 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
Share-Based Compensation Expense | $ | 906 | $ | 1,036 | $ | 1,891 | $ | 1,012 | $ | 906 | $ | 1,036 | ||||||||||||
Related Tax Benefits | $ | 381 | $ | 436 | $ | 795 | $ | 426 | $ | 381 | $ | 436 |
150
Unrecognized | Average Expected | |||||||||||||||
Unrecognized | Average Expected | Expense | Recognition Period | |||||||||||||
Expense | Recognition Period | (Dollars in Thousands) | ||||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Stock Option Awards | $ | 1,025 | 1.8 years | $ | 407 | 1.2 years | ||||||||||
Restricted Stock Awards | 302 | 4.0 years | 219 | 2.8 years | ||||||||||||
Total Unrecognized Share-Based Compensation Expense | $ | 1,327 | 2.3 years | $ | 626 | 1.8 years | ||||||||||
Year Ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Weighted-Average Estimated Fair Value Per Share of Options Granted | $ | 0.64 | $ | 1.54 | $ | 4.49 |
123
Year Ended December 31, 2010 2009 2008 Weighted-Average Estimated Fair Value Per Share of Options Granted $ — $ 0.64 $ 1.54
Year Ended December 31, | ||||||||||||||||||||||||
Year Ended December 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
Weighted-Average Assumptions: | ||||||||||||||||||||||||
Dividend Yield | 0.00 | % | 1.78 | % | 1.68 | % | — | 0.00% | 1.78% | |||||||||||||||
Expected Volatility | 51.28 | % | 35.89 | % | 29.98 | % | — | 51.28% | 35.89% | |||||||||||||||
Expected Term | 5.0 years | 3.1 years | 4.9 years | — | 5.0 years | 3.1 years | ||||||||||||||||||
Risk-Free Interest Rate | 1.89 | % | 3.04 | % | 4.29 | % | — | 1.89% | 3.04% |
151
Year Ended December 31, | ||||||||||||||||||||||||
Year Ended December 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | (In Thousands) | |||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
Grant Date Fair Value of Options Granted | $ | 173 | $ | 216 | $ | 596 | $ | — | $ | 173 | $ | 216 | ||||||||||||
Fair Value of Options Vested | $ | 993 | $ | 1,249 | $ | 1,590 | $ | 538 | $ | 993 | $ | 1,249 | ||||||||||||
Total Intrinsic Value of Options Exercised(1) | $ | — | $ | — | $ | 1,197 | $ | 14 | $ | — | $ | — | ||||||||||||
Cash Received from Options Exercised | $ | — | $ | — | $ | 1,145 | $ | 22 | $ | — | $ | — | ||||||||||||
Actual Tax Benefit Realized from Tax Deductions on Options Exercised | $ | — | $ | — | $ | 317 | $ | — | $ | — | $ | — |
(1) | Intrinsic value represents the difference between the closing stock price on the exercise date and the exercise price, multiplied by the number of options. |
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | Weighted- | Weighted- | Weighted- | |||||||||||||||||||||||||||||||||||||||||||
Weighted- | Weighted- | Weighted- | Average | Average | Average | |||||||||||||||||||||||||||||||||||||||||||
Average | Average | Average | Number | Exercise | Number | Exercise | Number | Exercise | ||||||||||||||||||||||||||||||||||||||||
Number | Exercise | Number | Exercise | Number | Exercise | of | Price Per | of | Price Per | of | Price Per | |||||||||||||||||||||||||||||||||||||
of | Price Per | of | Price Per | of | Price Per | Shares | Share | Shares | Share | Shares | Share | |||||||||||||||||||||||||||||||||||||
Shares | Share | Shares | Share | Shares | Share | |||||||||||||||||||||||||||||||||||||||||||
Options Outstanding at Beginning of Year | 1,323,467 | $ | 14.05 | 1,472,766 | $ | 15.33 | 1,755,813 | $ | 15.31 | 1,180,358 | $ | 11.78 | 1,323,467 | $ | 14.05 | 1,472,766 | $ | 15.33 | ||||||||||||||||||||||||||||||
Options Granted | 270,000 | $ | 1.39 | 140,000 | $ | 6.28 | 132,667 | $ | 15.05 | — | $ | — | 270,000 | $ | 1.39 | 140,000 | $ | 6.28 | ||||||||||||||||||||||||||||||
Options Exercised | — | $ | — | — | $ | — | (130,647 | ) | $ | 8.76 | (16,000 | ) | $ | 1.35 | — | $ | — | — | $ | — | ||||||||||||||||||||||||||||
Options Forfeited | (154,111 | ) | $ | 11.93 | (208,467 | ) | $ | 17.36 | (256,267 | ) | $ | 18.22 | (8,200 | ) | $ | 17.12 | (154,111 | ) | $ | 11.93 | (208,467 | ) | $ | 17.36 | ||||||||||||||||||||||||
Options Expired | (258,998 | ) | $ | 12.45 | (80,832 | ) | $ | 15.33 | (28,800 | ) | $ | 16.90 | (89,267 | ) | $ | 11.38 | (258,998 | ) | $ | 12.45 | (80,832 | ) | $ | 15.33 | ||||||||||||||||||||||||
Options OutstandingatEnd of Year | 1,180,358 | $ | 11.78 | 1,323,467 | $ | 14.05 | 1,472,766 | $ | 15.33 | 1,066,891 | $ | 11.93 | 1,180,358 | $ | 11.78 | 1,323,467 | $ | 14.05 | ||||||||||||||||||||||||||||||
Options Exercisable at End of Year | 743,958 | $ | 14.21 | 778,245 | $ | 13.51 | 617,634 | $ | 12.48 | 796,691 | $ | 13.94 | 743,958 | $ | 14.21 | 778,245 | $ | 13.51 |
124
152
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | Weighted- | Weighted- | Weighted- | |||||||||||||||||||||||||||||||||||||||||||
Weighted- | Weighted- | Weighted- | Average | Average | Average | |||||||||||||||||||||||||||||||||||||||||||
Average | Average | Average | Number | Grant Date | Number | Grant Date | Number | Grant Date | ||||||||||||||||||||||||||||||||||||||||
Number | Grant Date | Number | Grant Date | Number | Grant Date | of | Fair Value | of | Fair Value | of | Fair Value | |||||||||||||||||||||||||||||||||||||
of | Fair Value | of | Fair Value | of | Fair Value | Shares | Per Share | Shares | Per Share | Shares | Per Share | |||||||||||||||||||||||||||||||||||||
Shares | Per Share | Shares | Per Share | Shares | Per Share | |||||||||||||||||||||||||||||||||||||||||||
Non-Vested Options Outstanding at Beginning of Year | 545,222 | $ | 4.79 | 855,132 | $ | 5.47 | 1,283,910 | $ | 5.53 | 436,400 | $ | 2.71 | 545,222 | $ | 4.79 | 855,132 | $ | 5.47 | ||||||||||||||||||||||||||||||
Options Granted | 270,000 | $ | 0.64 | 140,000 | $ | 1.54 | 132,667 | $ | 4.49 | — | $ | — | 270,000 | $ | 0.64 | 140,000 | $ | 1.54 | ||||||||||||||||||||||||||||||
Options Vested | (224,711 | ) | $ | 4.42 | (241,443 | ) | $ | 5.17 | (305,178 | ) | $ | 5.21 | (158,000 | ) | $ | 3.41 | (224,711 | ) | $ | 4.42 | (241,443 | ) | $ | 5.17 | ||||||||||||||||||||||||
Options Forfeited | (154,111 | ) | $ | 3.96 | (208,467 | ) | $ | 4.92 | (256,267 | ) | $ | 5.57 | (8,200 | ) | $ | 5.50 | (154,111 | ) | $ | 3.96 | (208,467 | ) | $ | 4.92 | ||||||||||||||||||||||||
Non-Vested Options Outstanding at End of Year | 436,400 | $ | 2.71 | 545,222 | $ | 4.79 | 855,132 | $ | 5.47 | 270,200 | $ | 2.22 | 436,400 | $ | 2.71 | 545,222 | $ | 4.79 | ||||||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted- | Weighted- | Weighted- | Weighted- | Weighted- | Weighted- | Weighted- | Weighted- | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise | Remaining | Exercise | Remaining | Exercise | Remaining | Exercise | Remaining | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise | Number | Intrinsic | Price Per | Contractual | Number | Intrinsic | Price Per | Contractual | Number | Intrinsic | Price Per | Contractual | Number | Intrinsic | Price Per | Contractual | ||||||||||||||||||||||||||||||||||||||||||||||||
Price Range | of Shares | Value(1) | Share | Life | of Shares | Value(1) | Share | Life | of Shares | Value(1) | Share | Life | of Shares | Value(1) | Share | Life | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands, Except Per Share Data) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Thousands, Except Per Share Data) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$1.35 to $4.99 | 271,624 | $ | — | $ | 1.71 | 8.1 years | 36,624 | $ | — | $ | 3.89 | 0.7 years | 219,000 | $ | — | $ | 1.37 | 8.3 years | 31,000 | $ | — | $ | 1.38 | 8.3 years | ||||||||||||||||||||||||||||||||||||||||
$5.00 to $9.99 | 174,191 | — | $ | 6.85 | 5.7 years | 121,191 | — | $ | 6.79 | 4.6 years | 168,191 | — | $ | 6.91 | 4.6 years | 156,191 | — | $ | 6.71 | 4.4 years | ||||||||||||||||||||||||||||||||||||||||||||
$10.00 to $14.99 | 267,500 | — | $ | 13.51 | 4.2 years | 267,500 | — | $ | 13.51 | 4.2 years | 265,500 | — | $ | 13.51 | 3.2 years | 265,500 | — | $ | 13.51 | 3.2 years | ||||||||||||||||||||||||||||||||||||||||||||
$15.00 to $19.99 | 395,043 | — | $ | 17.93 | 6.3 years | 246,643 | — | $ | 17.98 | 6.2 years | 342,200 | — | $ | 17.90 | 5.4 years | 272,000 | — | $ | 17.91 | 5.3 years | ||||||||||||||||||||||||||||||||||||||||||||
$20.00 to $21.63 | 72,000 | — | $ | 21.63 | 6.9 years | 72,000 | — | $ | 21.63 | 6.9 years | 72,000 | — | $ | 21.63 | 5.9 years | 72,000 | — | $ | 21.63 | 5.9 years | ||||||||||||||||||||||||||||||||||||||||||||
1,066,891 | $ | — | $ | 11.93 | 5.4 years | 796,691 | $ | — | $ | 13,94 | 4.6 years | |||||||||||||||||||||||||||||||||||||||||||||||||||||
1,180,358 | $ | — | $ | 11.78 | 6.2 years | 743,958 | $ | — | $ | 14.21 | 5.0 years | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) | Intrinsic value represents the difference between the closing stock price on the last trading day of the period, which was |
125
153
Year Ended December 31, | ||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||
Weighted- | Weighted- | Weighted- | ||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||
Number | Grant Date | Number | Grant Date | Number | Grant Date | |||||||||||||||||||
of | Fair Value | of | Fair Value | of | Fair Value | |||||||||||||||||||
Shares | Per Share | Shares | Per Share | Shares | Per Share | |||||||||||||||||||
Restricted Stock at Beginning of Year | 183,400 | $ | 1.87 | 20,200 | $ | 11.42 | 19,000 | $ | 13.48 | |||||||||||||||
Restricted Stock Granted | — | $ | — | 205,000 | $ | 1.41 | 10,000 | $ | 6.68 | |||||||||||||||
Restricted Stock Forfeited | — | $ | — | (38,000 | ) | $ | 3.44 | (5,000 | ) | $ | 8.21 | |||||||||||||
Restricted Stock Vested | (37,800 | ) | $ | 2.19 | (3,800 | ) | $ | 10.59 | (3,800 | ) | $ | 10.59 | ||||||||||||
Restricted Stock at End of Year | 145,600 | $ | 1.77 | 183,400 | $ | 1.87 | 20,200 | $ | 11.42 | |||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
Weighted- | Weighted- | Weighted- | ||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||
Number | Grant Date | Number | Grant Date | Number | Grant Date | |||||||||||||||||||
of | Fair Value | of | Fair Value | of | Fair Value | |||||||||||||||||||
Shares | Per Share | Shares | Per Share | Shares | Per Share | |||||||||||||||||||
Restricted Stock at Beginning of Year | 20,200 | $ | 11.42 | 19,000 | $ | 13.48 | — | $ | — | |||||||||||||||
Restricted Stock Granted | 205,000 | $ | 1.41 | 10,000 | $ | 6.68 | 19,000 | $ | 13.48 | |||||||||||||||
Restricted Stock Forfeited | (38,000 | ) | $ | 3.44 | (5,000 | ) | $ | 8.21 | — | $ | — | |||||||||||||
Restricted Stock Vested | (3,800 | ) | $ | 10.59 | (3,800 | ) | $ | 10.59 | — | $ | — | |||||||||||||
Restricted Stock at End of Year | 183,400 | $ | 1.87 | 20,200 | $ | 11.42 | 19,000 | $ | 13.48 | |||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
Number | Exercise | Number | Exercise | Number | Exercise | |||||||||||||||||||
of | Price Per | of | Price Per | of | Price Per | |||||||||||||||||||
Shares | Share | Shares | Share | Shares | Share | |||||||||||||||||||
Options Outstanding at Beginning of Year | — | $ | — | — | $ | — | 350,000 | $ | 17.17 | |||||||||||||||
Options Forfeited | — | $ | — | — | $ | — | (233,334 | ) | $ | 17.17 | ||||||||||||||
Options Repurchased | — | $ | — | — | $ | — | (116,666 | ) | $ | 17.17 | ||||||||||||||
Options Outstanding at End of Year | — | $ | — | — | $ | — | — | $ | — | |||||||||||||||
Options Exercisable at End of Year | — | $ | — | — | $ | — | — | $ | — |
126
154
Year Ended December 31, | ||||||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
Number | Grant Date | Number | Grant Date | Number | Grant Date | |||||||||||||||||||
of | Fair Value | of | Fair Value | of | Fair Value | |||||||||||||||||||
Shares | Per Share | Shares | Per Share | Shares | Per Share | |||||||||||||||||||
Non-Vested Options Outstanding at Beginning of Year | — | $ | — | — | $ | — | 291,667 | $ | 4.82 | |||||||||||||||
Options Forfeited | — | $ | — | — | $ | — | (233,334 | ) | $ | 4.82 | ||||||||||||||
Options Vested | — | $ | — | — | $ | — | (58,333 | ) | $ | 4.82 | ||||||||||||||
Non-Vested Options Outstanding at End of Year | — | $ | — | — | $ | — | — | $ | — | |||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
Weighted- | Weighted- | Weighted- | ||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||
Number | Grant Date | Number | Grant Date | Number | Grant Date | |||||||||||||||||||
of | Fair Value | of | Fair Value | of | Fair Value | |||||||||||||||||||
Shares | Per Share | Shares | Per Share | Shares | Per Share | |||||||||||||||||||
Restricted Stock at Beginning of Year | — | $ | — | — | $ | — | 60,000 | $ | 18.15 | |||||||||||||||
Restricted Stock Vested | — | $ | — | — | $ | — | (60,000 | ) | $ | 18.15 | ||||||||||||||
Restricted Stock at End of Year | — | $ | — | — | $ | — | — | $ | — | |||||||||||||||
127
128
Minimum | Minimum to Be | |||||||||||||||||||||||
Regulatory | Categorized as | |||||||||||||||||||||||
Actual | Requirement | “Well Capitalized” | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
December 31, 2009 | ||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets): | ||||||||||||||||||||||||
Hanmi Financial | $ | 262,796 | 9.12 | % | $ | 230,614 | 8.00 | % | N/A | N/A | ||||||||||||||
Hanmi Bank | $ | 261,194 | 9.07 | % | $ | 230,261 | 8.00 | % | $ | 287,826 | 10.00 | % | ||||||||||||
Tier 1 Capital (to Risk-Weighted Assets): | ||||||||||||||||||||||||
Hanmi Financial | $ | 194,749 | 6.76 | % | $ | 115,307 | 4.00 | % | N/A | N/A | ||||||||||||||
Hanmi Bank | $ | 223,700 | 7.77 | % | $ | 115,131 | 4.00 | % | $ | 172,696 | 6.00 | % | ||||||||||||
Tier 1 Capital (to Average Assets): | ||||||||||||||||||||||||
Hanmi Financial | $ | 194,749 | 5.82 | % | $ | 133,945 | 4.00 | % | N/A | N/A | ||||||||||||||
Hanmi Bank | $ | 223,700 | 6.69 | % | $ | 133,770 | 4.00 | % | $ | 167,212 | 5.00 | % | ||||||||||||
December 31, 2008 | ||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets): | ||||||||||||||||||||||||
Hanmi Financial | $ | 383,043 | 10.79 | % | $ | 283,943 | 8.00 | % | N/A | N/A | ||||||||||||||
Hanmi Bank | $ | 379,438 | 10.70 | % | $ | 283,561 | 8.00 | % | $ | 354,451 | 10.00 | % | ||||||||||||
Tier 1 Capital (to Risk-Weighted Assets): | ||||||||||||||||||||||||
Hanmi Financial | $ | 338,042 | 9.52 | % | $ | 141,972 | 4.00 | % | N/A | N/A | ||||||||||||||
Hanmi Bank | $ | 334,628 | 9.44 | % | $ | 141,781 | 4.00 | % | $ | 212,671 | 6.00 | % | ||||||||||||
Tier 1 Capital (to Average Assets): | ||||||||||||||||||||||||
Hanmi Financial | $ | 338,042 | 8.93 | % | $ | 151,371 | 4.00 | % | N/A | N/A | ||||||||||||||
Hanmi Bank | $ | 334,628 | 8.85 | % | $ | 151,168 | 4.00 | % | $ | 188,959 | 5.00 | % |
129
130
131
132
133
Weighted- | ||||||||||||
Income | Average | Per | ||||||||||
(Loss) | Shares | Share | ||||||||||
(Numerator) | (Denominator) | Amount | ||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||
Year Ended December 31, 2010: | ||||||||||||
Basic EPS — Income Available to Common Stockholders | $ | (88,009 | ) | 94,322,222 | $ | (0.93 | ) | |||||
Effect of Dilutive Securities — Options and Warrants | — | — | — | |||||||||
Diluted EPS — Income Available to Common Stockholders | $ | (88,009 | ) | 94,322,222 | $ | (0.93 | ) | |||||
Year Ended December 31, 2009: | ||||||||||||
Basic EPS — Income Available to Common Stockholders | $ | (122,277 | ) | 47,570,361 | $ | (2.57 | ) | |||||
Effect of Dilutive Securities — Options and Warrants | — | — | — | |||||||||
Diluted EPS — Income Available to Common Stockholders | $ | (122,277 | ) | 45,570,361 | $ | (2.57 | ) | |||||
Year Ended December 31, 2008: | ||||||||||||
Basic EPS — Income Available to Common Stockholders | $ | (102,093 | ) | 45,872,541 | $ | (2.23 | ) | |||||
Effect of Dilutive Securities — Options and Warrants | — | — | — | |||||||||
Diluted EPS — Income Available to Common Stockholders | $ | (102,093 | ) | 45,872,541 | $ | (2.23 | ) | |||||
Weighted- | ||||||||||||
Income | Average | Per | ||||||||||
(Loss) | Shares | Share | ||||||||||
(Numerator) | (Denominator) | Amount | ||||||||||
(Dollars in Thousands, Except Per Share Amounts) | ||||||||||||
Year Ended December 31, 2009: | ||||||||||||
Basic EPS — Income Available to Common Stockholders | $ | (122,277 | ) | 47,570,361 | $ | (2.57 | ) | |||||
Effect of Dilutive Securities — Options and Warrants | — | — | — | |||||||||
Diluted EPS — Income Available to Common Stockholders | $ | (122,277 | ) | 45,570,361 | $ | (2.57 | ) | |||||
Year Ended December 31, 2008: | ||||||||||||
Basic EPS — Income Available to Common Stockholders | $ | (102,093 | ) | 45,872,541 | $ | (2.23 | ) | |||||
Effect of Dilutive Securities — Options and Warrants | — | — | — | |||||||||
Diluted EPS — Income Available to Common Stockholders | $ | (102,093 | ) | 45,872,541 | $ | (2.23 | ) | |||||
Year Ended December 31, 2007: | ||||||||||||
Basic EPS — Income Available to Common Stockholders | $ | (60,762 | ) | 47,787,213 | $ | (1.27 | ) | |||||
Effect of Dilutive Securities — Options and Warrants | — | — | — | |||||||||
Diluted EPS — Income Available to Common Stockholders | $ | (60,762 | ) | 47,787,213 | $ | (1.27 | ) | |||||
155
134
Year Ending | ||||||||
December 31, | Amount | Amount | ||||||
(In Thousands) | (In Thousands) | |||||||
2010 | $ | 5,434 | ||||||
2011 | 4,667 | $ | 4,470 | |||||
2012 | 3,865 | 4,180 | ||||||
2013 | 3,338 | 3,536 | ||||||
2014 | 2,051 | 2,154 | ||||||
2015 | 1,773 | |||||||
Thereafter | 7,344 | 5,645 | ||||||
Total | $ | 26,699 | $ | 21,758 | ||||
156
135
December 31, | ||||||||||||||||
December 31, | 2010 | 2009 | ||||||||||||||
2009 | 2008 | (In thousands) | ||||||||||||||
(In Thousands) | ||||||||||||||||
Commitments to Extend Credit | $ | 262,821 | $ | 386,785 | $ | 178,424 | $ | 262,821 | ||||||||
Standby Letters of Credit | 17,225 | 47,289 | 15,226 | 17,225 | ||||||||||||
Commercial Letters of Credit | 13,544 | 29,177 | 11,899 | 13,544 | ||||||||||||
Unused Credit Card Lines | 23,408 | 16,912 | 24,649 | 23,408 | ||||||||||||
Total Undisbursed Loan Commitments | $ | 316,998 | $ | 480,163 | $ | 230,198 | $ | 316,998 | ||||||||
157
136
137
158
138
159
December 31, | ||||||||
2010 | 2009 | |||||||
(In Thousands) | ||||||||
ASSETS | ||||||||
Cash | $ | 7,716 | $ | 3,486 | ||||
Securities Available for Sale | 774 | 794 | ||||||
Investment in Consolidated Subsidiaries | 251,808 | 228,324 | ||||||
Investment in Trust Preferred Securities | 2,475 | 2,475 | ||||||
Other Assets | 1,654 | 1,538 | ||||||
TOTAL ASSETS | $ | 264,427 | $ | 236,617 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Junior Subordinated Debentures | $ | 82,406 | $ | 82,406 | ||||
Other Liabilities | 8,765 | 4,467 | ||||||
Stockholders’ Equity | 173,256 | 149,744 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 264,427 | $ | 236,617 | ||||
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In Thousands) | ||||||||||||
Equity in Earnings (Losses) of Subsidiaries | $ | (82,705 | ) | $ | (118,340 | ) | $ | (97,040 | ) | |||
Other Expenses, Net | (5,339 | ) | (6,057 | ) | (8,610 | ) | ||||||
Income Tax Benefit | 35 | 2,120 | 3,557 | |||||||||
NET INCOME (LOSS) | $ | (88,009 | ) | $ | (122,277 | ) | $ | (102,093 | ) | |||
139
160
December 31, | ||||||||
2009 | 2008 | |||||||
(In Thousands) | ||||||||
ASSETS | ||||||||
Cash | $ | 3,486 | $ | 2,167 | ||||
Securities Available for Sale | 794 | 804 | ||||||
Investment in Consolidated Subsidiaries | 228,324 | 340,297 | ||||||
Investment in Trust Preferred Securities | 2,475 | 2,475 | ||||||
Other Assets | 1,538 | 1,738 | ||||||
TOTAL ASSETS | $ | 236,617 | $ | 347,481 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Junior Subordinated Debentures | $ | 82,406 | $ | 82,406 | ||||
Other Liabilities | 4,467 | 1,160 | ||||||
Stockholders’ Equity | 149,744 | 263,915 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 236,617 | $ | 347,481 | ||||
Year Ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
(In Thousands) | ||||||||||||
Equity in Earnings (Losses) of Subsidiaries | $ | (118,340 | ) | $ | (97,040 | ) | $ | (54,500 | ) | |||
Other Expenses, Net | (6,057 | ) | (8,610 | ) | (10,155 | ) | ||||||
Income Tax Benefit | 2,120 | 3,557 | 3,893 | |||||||||
NET INCOME (LOSS) | $ | (122,277 | ) | $ | (102,093 | ) | $ | (60,762 | ) | |||
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In Thousands) | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net Loss | $ | (88,009 | ) | $ | (122,277 | ) | $ | (102,093 | ) | |||
Adjustments to Reconcile Net Income (Loss) to Net Cash Used In Operating | ||||||||||||
Activities: | ||||||||||||
Losses of Subsidiaries | 82,705 | 118,340 | 97,040 | |||||||||
Share-Based Compensation Expense | 1,013 | 906 | 1,036 | |||||||||
Changes in Fair Value of Stock Warrants | (362 | ) | — | — | ||||||||
(Increase) Decrease in Other Assets | (116 | ) | 200 | (706 | ) | |||||||
Increase (Decrease) in Other Liabilities | 2,706 | 3,311 | (2,983 | ) | ||||||||
Net Cash Provided (Used) In Operating Activities | (2,063 | ) | 480 | (7,706 | ) | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Dividends Received from Hanmi Bank | — | — | 8,500 | |||||||||
Payments from (to) Hanmi Bank | (110,000 | ) | (6,000 | ) | — | |||||||
Net Cash Provided (Used) By Investing Activities | (110,000 | ) | (6,000 | ) | 8,500 | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Proceeds from Exercise of Stock Options and Stock Warrants | 22 | — | — | |||||||||
Net Proceeds from Issuance of Common Stock in Offering | 116,271 | 6,839 | — | |||||||||
Cash Paid to Repurchase Stock Options and Stock Warrants | — | — | (70 | ) | ||||||||
Cash Dividends Paid | — | — | (3,853 | ) | ||||||||
Net Cash Provided (Used) In Financing Activities | 116,293 | 6,839 | (3,923 | ) | ||||||||
NET INCREASE (DECREASE) IN CASH | 4,230 | 1,319 | (3,129 | ) | ||||||||
Cash at Beginning of Year | 3,486 | 2,167 | 5,296 | |||||||||
CASH AT END OF YEAR | $ | 7,716 | $ | 3,486 | $ | 2,167 | ||||||
140
161
STATEMENTS OF CASH FLOWS | Year Ended December 31, | |||||||||||
2009 | 2008 | 2007 | ||||||||||
(In Thousands) | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net Income (Loss) | $ | (122,277 | ) | $ | (102,093 | ) | $ | (60,762 | ) | |||
Adjustments to Reconcile Net Income (Loss) to Net Cash Used In Operating Activities: | ||||||||||||
Losses (Earnings) of Subsidiaries | 118,340 | 97,040 | 54,500 | |||||||||
Share-Based Compensation Expense | 906 | 1,036 | 1,891 | |||||||||
(Increase) Decrease in Other Assets | 200 | (706 | ) | 3,139 | ||||||||
Increase (Decrease) in Other Liabilities | 3,311 | (2,983 | ) | (208 | ) | |||||||
Tax Benefit from Exercises of Stock Options | — | — | 317 | |||||||||
Net Cash Provided (Used) In Operating Activities | 480 | (7,706 | ) | (1,123 | ) | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Dividends Received from Hanmi Bank | — | 8,500 | 63,501 | |||||||||
Payments from (to) Hanmi Bank | (6,000 | ) | — | — | ||||||||
Business Acquisitions, Net of Cash Received | — | — | (1,727 | ) | ||||||||
Net Cash Provided (Used) By Investing Activities | (6,000 | ) | 8,500 | 61,774 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Proceeds from Exercise of Stock Options and Stock Warrants | — | — | 1,164 | |||||||||
Net Proceeds from Issuance of Common Stock in Private Offering | 6,839 | — | — | |||||||||
Cash Paid to Acquire Treasury Stock | — | — | (49,971 | ) | ||||||||
Cash Paid to Repurchase Stock Options and Stock Warrants | — | (70 | ) | (2,552 | ) | |||||||
Cash Dividends Paid | — | (3,853 | ) | (11,574 | ) | |||||||
Net Cash Provided (Used) In Financing Activities | 6,839 | (3,923 | ) | (62,933 | ) | |||||||
NET INCREASE (DECREASE) IN CASH | 1,319 | (3,129 | ) | (2,282 | ) | |||||||
Cash at Beginning of Year | 2,167 | 5,296 | 7,578 | |||||||||
CASH AT END OF YEAR | $ | 3,486 | $ | 2,167 | $ | 5,296 | ||||||
141
Quarter Ended | Quarter Ended | |||||||||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | March 31 | June 30 | September 30 | December 31 | |||||||||||||||||||||||||
(Dollars in Thousands; Except Per Share Amounts) | (Dollars in thousands; except per share amounts) | |||||||||||||||||||||||||||||||
2010: | ||||||||||||||||||||||||||||||||
Interest and Dividend Income | $ | 38,053 | $ | 36,171 | $ | 35,675 | $ | 34,613 | ||||||||||||||||||||||||
Interest Expense | 10,719 | 9,875 | 9,402 | 8,642 | ||||||||||||||||||||||||||||
Net Interest Income Before Provision for Credit Losses | 27,334 | 26,296 | 26,273 | 25,971 | ||||||||||||||||||||||||||||
Provision for Credit Losses | 57,996 | 37,500 | 22,000 | 5,000 | ||||||||||||||||||||||||||||
Non-Interest Income | 7,005 | 6,677 | 5,671 | 6,053 | ||||||||||||||||||||||||||||
Non-Interest Expense | 26,224 | 24,766 | 24,079 | 21,735 | ||||||||||||||||||||||||||||
Income (Loss) Before Provision (Benefit) for Income Taxes | (49,881 | ) | (29,293 | ) | (14,135 | ) | 5,289 | |||||||||||||||||||||||||
Provision (Benefit) for Income Taxes | (395 | ) | (36 | ) | 442 | (23 | ) | |||||||||||||||||||||||||
NET INCOME (LOSS) | $ | (49,486 | ) | $ | (29,257 | ) | $ | (14,577 | ) | $ | 5,312 | |||||||||||||||||||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||||||||||||||||||
Basic | $ | (0.97 | ) | $ | (0.57 | ) | $ | (0.12 | ) | $ | 0.04 | |||||||||||||||||||||
Diluted | $ | (0.97 | ) | $ | (0.57 | ) | $ | (0.12 | ) | $ | 0.04 | |||||||||||||||||||||
2009: | ||||||||||||||||||||||||||||||||
Interest and Dividend Income | $ | 48,015 | $ | 47,680 | $ | 45,495 | $ | 42,957 | $ | 48,015 | $ | 47,680 | $ | 45,495 | $ | 42,957 | ||||||||||||||||
Interest Expense | 24,885 | 24,544 | 18,977 | 14,512 | 24,885 | 24,544 | 18,977 | 14,512 | ||||||||||||||||||||||||
Net Interest Income Before Provision for Credit Losses | 23,130 | 23,136 | 26,518 | 28,445 | 23,130 | 23,136 | 26,518 | 28,445 | ||||||||||||||||||||||||
Provision for Credit Losses | 45,953 | 23,934 | 49,500 | 77,000 | 45,953 | 23,934 | 49,500 | 77,000 | ||||||||||||||||||||||||
Non-Interest Income | 8,380 | 7,678 | 8,213 | 7,839 | 8,380 | 7,678 | 8,213 | 7,839 | ||||||||||||||||||||||||
Non-Interest Expense | 18,252 | 25,703 | 23,689 | 22,710 | 18,252 | 25,703 | 23,689 | 22,710 | ||||||||||||||||||||||||
Income (Loss) Before Provision (Benefit) for Income Taxes | (32,695 | ) | (18,823 | ) | (38,458 | ) | (63,426 | ) | ||||||||||||||||||||||||
Provision (Benefit) for Income Taxes | (15,499 | ) | (9,288 | ) | 21,207 | (27,545 | ) | |||||||||||||||||||||||||
Income (Loss) Before Provision for Income Taxes | (32,695 | ) | (18,823 | ) | (38,458 | ) | (63,426 | ) | ||||||||||||||||||||||||
Provision for Income Taxes | (15,499 | ) | (9,288 | ) | 21,207 | (27,545 | ) | |||||||||||||||||||||||||
NET INCOME (LOSS) | $ | (17,196 | ) | $ | (9,535 | ) | $ | (59,665 | ) | $ | (35,881 | ) | $ | (17,196 | ) | $ | (9,535 | ) | $ | (59,665 | ) | $ | (35,881 | ) | ||||||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||||||||||||||||||
Basic | $ | (0.37 | ) | $ | (0.21 | ) | $ | (1.26 | ) | $ | (0.70 | ) | $ | (0.37 | ) | $ | (0.21 | ) | $ | (1.26 | ) | $ | (0.70 | ) | ||||||||
Diluted | $ | (0.37 | ) | $ | (0.21 | ) | $ | (1.26 | ) | $ | (0.70 | ) | $ | (0.37 | ) | $ | (0.21 | ) | $ | (1.26 | ) | $ | (0.70 | ) | ||||||||
2008: | ||||||||||||||||||||||||||||||||
Interest and Dividend Income | $ | 64,970 | $ | 59,663 | $ | 59,441 | $ | 54,109 | ||||||||||||||||||||||||
Interest Expense | 30,773 | 25,595 | 23,844 | 23,570 | ||||||||||||||||||||||||||||
Net Interest Income Before Provision for Credit Losses | 34,197 | 34,068 | 35,597 | 30,539 | ||||||||||||||||||||||||||||
Provision for Credit Losses | 17,821 | 19,229 | 13,176 | 25,450 | ||||||||||||||||||||||||||||
Non-Interest Income | 9,765 | 9,652 | 5,328 | 7,404 | ||||||||||||||||||||||||||||
Non-Interest Expense | 21,588 | 129,443 | 22,235 | 21,056 | ||||||||||||||||||||||||||||
Income (Loss) Before Provision for Income Taxes | 4,553 | (104,952 | ) | 5,514 | (8,563 | ) | ||||||||||||||||||||||||||
Provision for Income Taxes | 1,632 | 595 | 1,166 | (4,748 | ) | |||||||||||||||||||||||||||
NET INCOME (LOSS) | $ | 2,921 | $ | (105,547 | ) | $ | 4,348 | $ | (3,815 | ) | ||||||||||||||||||||||
EARNINGS (LOSS) PER SHARE: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.06 | $ | (2.30 | ) | $ | 0.09 | $ | (0.08 | ) | ||||||||||||||||||||||
Diluted | $ | 0.06 | $ | (2.30 | ) | $ | 0.09 | $ | (0.08 | ) |
142
162
By: | /s/ Jay S. Yoo | |||
/s/ Jay S. Yoo Jay S. Yoo President and Chief Executive Officer (Principal Executive Officer) | /s/ Brian E. Cho | |
Brian E. Cho | ||
Executive Vice President and Chief Financial Officer | ||
(Principal Financial and Accounting Officer) | ||
/s/ Joseph K. Rho Joseph K. Rho Chairman of the Board | /s/ I Joon Ahn | |
I Joon Ahn | ||
Director | ||
/s/ John A. Hall John A. Hall Director | /s/ William J. Stolte | |
William J. Stolte Director | ||
/s/ Joon Hyung Lee Joon Hyung Lee Director | /s/ Paul (Seon-Hong) Kim | |
Paul (Seon-Hong) Kim | ||
Director |
143
163
Exhibit | ||||||||
Number | Document | |||||||
3 | .1 | Amended and Restated Certificate of Incorporation of Hanmi Financial Corporation, dated April 19, 2000 (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q, filed with the SEC on November 9, 2010). | ||||||
3 | .2 | Certificate of Second Amendment of Certificate of Incorporation of Hanmi Financial Corporation, dated June, 23, 2004 (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q, filed with the SEC on November 9, 2010). | ||||||
3 | .3 | Certificate of Amendment of Amended and Restated Certificate of Incorporation of Hanmi Financial Corporation, dated May 28, 2009 (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q, filed with the SEC on November 9, 2010). | ||||||
3 | .4 | Certificate of Amendment of Amended and Restated Certificate of Incorporation of Hanmi Financial Corporation, dated July 28, 2010 (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q, filed with the SEC on November 9, 2010). | ||||||
3 | .5 | Amended and Restated Bylaws of Hanmi Financial Corporation, dated April 19, 2000 (Previously filed and incorporated by reference herein from Hanmi Financial’s Registration Statement onForm S-3 filed with the SEC on February 4, 2010). | ||||||
3 | .6 | Certificate of Amendment to Bylaws of Hanmi Financial Corporation, dated November 21, 2007 (Previously filed and incorporated by reference herein from Hanmi Financial’s Registration Statement onForm S-3 filed with the SEC on February 4, 2010). | ||||||
4 | Specimen stock certificate representing Hanmi Financial Corporation Common Stock | |||||||
4 | .1 | Hanmi Financial Corporation Warrant for the Purchase of Shares of Common Stock, issued to Cappello Capital Corp., dated October 14, 2010 (Previously filed and incorporated by reference herein from Hanmi Financial’s Current Report onForm 8-K filed with the SEC on October 14, 2010). | ||||||
10 | .1 | Amended and Restated Trust Agreement of Hanmi Capital Trust I dated as of January 8, 2004 among Hanmi Financial Corporation, Deutsche Bank Trust Company Americas, as Property Trustee, Deutsche Bank Trust Company Delaware, as Delaware Trustee, and the Administrative Trustees Named Therein (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2004 filed with the SEC on August 9, 2004). | ||||||
10 | .2 | Hanmi Capital Trust I Junior Subordinated Indenture dated as of January 8, 2004 entered into between Hanmi Financial Corporation and Deutsche Bank Trust Company Americas, as Trustee (included as Exhibit D to Exhibit 10.1) (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2004 filed with the SEC on August 9, 2004). | ||||||
10 | .3 | Hanmi Capital Trust I Guarantee Agreement dated as of January 8, 2004 entered into between Hanmi Financial Corporation, as Guarantor, and Deutsche Bank Trust Company Americas, as Guarantee Trustee (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2004 filed with the SEC on August 9, 2004). | ||||||
10 | .4 | Hanmi Capital Trust I Form of Common Securities Certificate (included as Exhibit B to Exhibit 10.1) (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2004 filed with the SEC on August 9, 2004). | ||||||
10 | .5 | Hanmi Capital Trust I Form of Preferred Securities Certificate (included as Exhibit C to Exhibit 10.1) (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2004 filed with the SEC on August 9, 2004). | ||||||
10 | .6 | Amended and Restated Trust Agreement of Hanmi Capital Trust II dated as of March 15, 2004 among Hanmi Financial Corporation, Deutsche Bank Trust Company Americas, as Property Trustee, Deutsche Bank Trust Company Delaware, as Delaware Trustee, and the Administrative Trustees Named Therein (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2004 filed with the SEC on August 9, 2004). |
164
Exhibit | ||||||||
Number | Document | |||||||
10 | .7 | Hanmi Capital Trust II Junior Subordinated Indenture dated as of March 15, 2004 entered into between Hanmi Financial Corporation and Deutsche Bank Trust Company Americas, as Trustee (included as Exhibit D to Exhibit 10.6) (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2004 filed with the SEC on August 9, 2004). | ||||||
10 | .8 | Hanmi Capital Trust II Guarantee Agreement dated as of March 15, 2004 entered into between Hanmi Financial Corporation, as Guarantor, and Deutsche Bank Trust Company Americas, as Guarantee Trustee (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2004 filed with the SEC on August 9, 2004). | ||||||
10 | .9 | Hanmi Capital Trust II Form of Common Securities Certificate (included as Exhibit B to Exhibit 10.6) (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2004 filed with the SEC on August 9, 2004). | ||||||
10 | .10 | Hanmi Capital Trust II Form of Preferred Securities Certificate (included as Exhibit C to Exhibit 10.6) (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2004 filed with the SEC on August 9, 2004). | ||||||
10 | .11 | Amended and Restated Trust Agreement of Hanmi Capital Trust III dated as of April 28, 2004 among Hanmi Financial Corporation, Deutsche Bank Trust Company Americas, as Property Trustee, Deutsche Bank Trust Company Delaware, as Delaware Trustee, and the Administrative Trustees Named Therein, (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2004 filed with the SEC on August 9, 2004). | ||||||
10 | .12 | Hanmi Capital Trust III Junior Subordinated Indenture dated as of April 28, 2004 entered into between Hanmi Financial Corporation and Deutsche Bank Trust Company Americas, as Trustee (included as exhibit D to Exhibit 10.11) (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2004 filed with the SEC on August 9, 2004). | ||||||
10 | .13 | Hanmi Capital Trust III Guarantee Agreement dated as of April 28, 2004 entered into between Hanmi Financial Corporation, as Guarantor, and Deutsche Bank Trust Company Americas, as Guarantee Trustee (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2004 filed with the SEC on August 9, 2004). | ||||||
10 | .14 | Hanmi Capital Trust III Form of Common Securities Certificate (included as Exhibit B to Exhibit 10.11) (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2004 filed with the SEC on August 9, 2004). | ||||||
10 | .15 | Hanmi Capital Trust III Form of Preferred Securities Certificate (included as Exhibit C to Exhibit 10.11) (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2004 filed with the SEC on August 9, 2004). | ||||||
10 | .16 | Employment Agreement Between Hanmi Financial Corporation and Hanmi Bank, on the One Hand, and Jay S. Yoo, on the Other Hand, dated as of June 19, 2008 (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2008 filed with the SEC on August 11, 2008).† | ||||||
10 | .17 | Hanmi Financial Corporation 2007 Equity Compensation Plan (Previously filed and incorporated by reference herein from Hanmi Financial’s Current Report onForm 8-K filed with the SEC on June 26, 2007).† | ||||||
10 | .18 | Hanmi Financial Corporation Year 2000 Stock Option Plan (Previously filed and incorporated by reference herein from Hanmi Financial’s Registration Statement onForm S-8 filed with the SEC on August 18, 2000).† | ||||||
10 | .19 | Form of Notice of Stock Option Grant and Agreement Pursuant to 2007 Equity Compensation Plan (Previously filed and incorporated by reference herein from Hanmi Financial’s Annual Report onForm 10-K/A for the year ended December 31, 2008 filed with the SEC on April 9, 2009).† | ||||||
10 | .20 | Hanmi Financial Corporation Amended and Restated 2007 Employee Stock Incentive Plan — Restricted Stock Agreement (Previously filed and incorporated by reference herein from Hanmi Financial’s Annual Report onForm 10-K/A for the year ended December 31, 2008 filed with the SEC on April 9, 2009)† |
144165
Exhibit | ||||||||
Number | Document | |||||||
10 | .21 | Form of Notice of Grant and Restricted Stock Agreement Pursuant to 2007 Equity Compensation Plan (Previously filed and incorporated by reference herein from Hanmi Financial’s Annual Report onForm 10-K/A for the year ended December 31, 2008 filed with the SEC on April 9, 2009).† | ||||||
10 | .22 | Employment Offer Letter with Brian E. Cho, executed November 1, 2007 (Previously filed and incorporated by reference herein from Hanmi Financial’s Current Report onForm 8-K filed with the SEC on December 3, 2007).† | ||||||
10 | .23 | Securities Purchase Agreement, dated June 12, 2009, by and between Hanmi Financial Corporation and Leading Investments & Securities Co., Ltd. (Previously filed and incorporated by reference herein from Hanmi Financial’s Current Report onForm 8-K filed with the SEC on June 15, 2009). | ||||||
10 | .24 | Registration Rights Agreement, dated June 12, 2009, by and between Hanmi Financial Corporation and Leading Investments & Securities Co., Ltd. (Previously filed and incorporated by reference herein from Hanmi Financial’s Current Report onForm 8-K filed with the SEC on June 15, 2009). | ||||||
10 | .25 | First Amendment to the Securities Purchase Agreement, dated July 31, 2009, by and between Hanmi Financial Corporation and Leading Investment & Securities Co., Ltd. (Previously filed and incorporated by reference herein from Hanmi Financial’s Current Report onForm 8-K filed with the SEC on August 3, 2009). | ||||||
10 | .26 | Amended and Restated Term Sheet, dated September 14, 2009, by and among Hanmi Financial Corporation, Leading Investment & Securities Co., Ltd., and IWL Partners LLC (Previously filed and incorporated by reference herein from Hanmi Financial’s Current Report onForm 8-K filed with the SEC on September 15, 2009). | ||||||
10 | .27 | Second Amendment to the Securities Purchase Agreement, dated September 28, 2009, by and between Hanmi Financial Corporation and Leading Investment & Securities Co., Ltd. (Previously filed and incorporated by reference herein from Hanmi Financial’s Current Report onForm 8-K filed with the SEC on October 2, 2009). | ||||||
10 | .28 | First Amendment to the Amended and Restated Term Sheet, dated September 28, 2009, by and between Hanmi Financial Corporation, Leading Investment & Securities Co., Ltd., and IWL Partners, LLC (Previously filed and incorporated by reference herein from Hanmi Financial’s Current Report onForm 8-K filed with the SEC on October 2, 2009). | ||||||
10 | .29 | Final Order, dated November 2, 2009, issued to Hanmi Bank by the California Department of Financial Institutions | ||||||
10 | .30 | Written Agreement, dated November 2, 2009, by and between Hanmi Financial Corporation and Hanmi Bank, on one hand, and the Federal Reserve Bank of San Francisco, on the other hand | ||||||
10 | .31 | Summary of 2010 Executive Retention Plan (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2010 filed with the SEC on August 9, 2010). † | ||||||
10 | .32 | Securities Purchase Agreement, dated as of May 25, 2010, by and between Hanmi Financial and Woori Finance Holdings Co. Ltd. (Previously filed and incorporated by reference herein from Hanmi Financial’s Current Report onForm 8-K filed with the SEC on May 28, 2010). | ||||||
10 | .33 | Amendment No. 1 to the Securities Purchase Agreement, dated as of September [ • ] 2010, by and between Hanmi Financial and Woori Finance Holdings Co. Ltd. (Previously filed and incorporated by reference herein from Hanmi Financial’s Current Report onForm 8-K filed with the SEC on October 1, 2010). | ||||||
10 | .34 | Amendment No. 2 to the Securities Purchase Agreement, dated as of November 30, 2010, by and between Hanmi Financial and Woori Finance Holdings Co. Ltd. (Previously filed and incorporated by reference herein from Hanmi Financial’s Current Report onForm 8-K filed with the SEC on November 30, 2010). | ||||||
10 | .35 | Form of Indemnification Agreement | ||||||
14 | Code of Ethics (Previously filed and incorporated by reference herein from Hanmi Financial’s Annual Report onForm 10-K for the year ended December 31, 2004 filed with the SEC on March 16, 2005). |
166
Exhibit | ||||||||
Number | Document | |||||||
21 | Subsidiaries of the Registrant (Previously filed and incorporated by reference herein from Hanmi Financial’s Annual Report onForm 10-K for the year ended December 31, 2007 filed with the SEC on February 29, 2008). | |||||||
23 | Consent of KPMG LLP | |||||||
31 | .1 | Certification of Chief Executive Officer pursuant toRule 13a-14(a) andRule 15d-14(a) of the Securities Exchange Act, as amended | ||||||
31 | .2 | Certification of Chief Financial Officer pursuant toRule 13a-14(a) andRule 15d-14(a) of the Securities Exchange Act, as amended | ||||||
32 | .1 | Certification of Chief Executive Officer Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||
32 | .2 | Certification of Chief Financial Officer Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
Constitutes a management contract or compensatory plan or arrangement. |
145167