EXHIBIT 99.1
HANMI FINANCIAL CORPORATION REPORTS
NET INCOME OF $15.3 MILLION FOR SECOND QUARTER OF 2007
LOS ANGELES – July 26, 2007 – Hanmi Financial Corporation (NASDAQ:HAFC), the holding company for Hanmi Bank, reported that for the three months ended June 30, 2007, it earned net income of $15.3 million, an increase of 17.4 percent compared to net income of $13.1 million in the first quarter of 2007. Earnings per share were $0.31 (diluted), an increase of 19.2 percent compared to $0.26 per share (diluted) for the first quarter of 2007.
“The sequential increase of $2.2 million in net income — to $15.3 million from $13.1 million in the prior quarter — points to continuing solid performance in our core operations, including a loan portfolio that grew by $191.0 million, or 6.7 percent, since the beginning of the year,” said Sung Won Sohn, Ph.D., President and Chief Executive Officer. “It points as well to the quality of the loan portfolio and the fact that the second-quarter provision for credit losses was only $3.0 million compared to $6.1 million in the first quarter.”
“We grew our net interest income before provision for credit losses by $525,000, or 1.4 percent, compared to the first quarter, despite a modest decline in the net interest margin to 4.51 percent from 4.61 percent,” added Dr. Sohn. “This illustrates the state of the markets we serve, particularly the Southern California commercial real estate market: they present numerous business opportunities, but at the same time remain fiercely competitive.”
“We anticipate that this competition — which is coming from mainstream banks as well as other Korean-American banks — will in the near term continue to put pressure on margins. With that understood,” concluded Dr. Sohn, “the message I would leave with investors is that while we will continue to focus on growth in assets and net interest income, our foremost concern will continue to be credit quality.”
SECOND-QUARTER HIGHLIGHTS
| • | | Net interest income before provision for credit losses was $38.6 million for the second quarter of 2007, compared to $38.1 million for the first quarter of 2007 and $38.4 million for the second quarter of 2006, reflecting a 2.4 percent and 7.8 percent, respectively, sequential increase in average interest-earning assets. Net interest margin for the second quarter of 2007 was 4.51 percent, compared to 4.61 percent for the first quarter of 2007 and 4.84 percent for the second quarter of 2006. |
| • | | The loan portfolio increased by $191.0 million, or 6.7 percent, to $3.06 billion at June 30, 2007, compared to $2.86 billion at December 31, 2006, reflecting continued growth in commercial and industrial loans. |
| • | | Non-performing loans increased by $3.1 million to $22.6 million, or 0.74 percent of the portfolio, at June 30, 2007, compared to $19.5 million, or 0.67 percent of the portfolio, at March 31, 2007. Loans over 30 days delinquent decreased from $37.3 million at March 31, 2007 to $32.0 million at June 30, 2007. |
| • | | The provision for credit losses was $3.0 million for the second quarter of 2007, compared to $6.1 million for the first quarter of 2007 and $900,000 for the second quarter of 2006. |
| • | | The allowance for loan losses was 1.05 percent, 1.08 percent and 0.98 percent of the gross loan portfolio at June 30, 2007, March 31, 2007 and June 30, 2006, respectively. |
| • | | During the second quarter, the Company repurchased 923,800 of its shares at a cost of $15.9 million, or $17.19 per share. |
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NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES
Net interest income before provision for credit losses was $38.6 million for the second quarter of 2007, an increase of $525,000, or 1.4 percent, compared to $38.1 million for the first quarter of 2007, and an increase of $193,000, or 0.5 percent, compared to $38.4 million for the second quarter of 2006.
The yield on the loan portfolio was 8.68 percent for the second quarter of 2007, a decrease of 12 basis points compared to 8.80 percent for the first quarter of 2007, and an increase of 3 basis points compared to 8.65 percent for the second quarter of 2006. The yield on investment securities was 4.40 percent for the second quarter of 2007, a decrease of 4 basis points compared to 4.44 percent for the first quarter of 2007, and the same as the second quarter of 2006.
The yield on average interest-earning assets was 8.17 percent for the second quarter of 2007, a decrease of 6 basis points compared to 8.23 percent for the first quarter of 2007, and an increase of 11 basis points compared to 8.06 percent for the second quarter of 2006. The cost of interest-bearing liabilities was 4.92 percent for the second quarter of 2007, an increase of 5 basis points compared to 4.87 percent for the first quarter of 2007, and an increase of 55 basis points compared to 4.37 percent for the second quarter of 2006, as the competitive deposit rate environment continued to stabilize.
PROVISION FOR CREDIT LOSSES
The provision for credit losses was $3.0 million for the second quarter of 2007, compared to $6.1 million for the first quarter of 2007 and $900,000 for the same quarter last year. In the second quarter of 2007, net charge-offs were $2.5 million, compared to $2.4 million for the first quarter of 2007 and $353,000 for the same quarter last year.
The sequential decrease in the provision for credit losses is attributable primarily to decreased migration of loans into the Company’s more adverse risk rating categories and the resolution of certain non-performing loans in the second quarter.
The sequential decrease in the provision for credit losses also reflects a reduced rate of increase in non-performing assets, which increased $4.2 million in the second quarter to a balance of $23.7 million at June 30, 2007, compared to an increase of $5.3 million to a balance of $19.5 million at March 31, 2007. Delinquent loans decreased to $32.0 million, or 1.05 percent of gross loans, at June 30, 2007 from $37.3 million, or 1.28 percent of gross loans, at March 31, 2007. While the level of non-performing assets and delinquent loans are indicators of the credit quality of the portfolio, the provision for credit losses is determined primarily on the basis of loan classifications and the Company’s historical loss experience with similarly situated credits.
NON-INTEREST INCOME
Non-interest income increased by $705,000, or 7.1 percent, to $10.7 million for the second quarter of 2007, compared to $10.0 million for the first quarter of 2007, and increased by $2.0 million, or 23.4 percent, compared to $8.7 million for the second quarter of 2006. The increases in non-interest income are primarily attributable to increases in the amount of gain on sales of loans and increased insurance commissions as a result of the acquisition of two insurance agencies in the first quarter of 2007.
NON-INTEREST EXPENSES
Non-interest expenses increased by $521,000, or 2.5 percent, to $21.5 million for the second quarter of 2007, compared to $21.0 million for the first quarter of 2007, and increased by $1.7 million, or 8.6 percent, compared to $19.8 million for the second quarter of 2006. Salaries and employee benefits decreased $979,000, or 8.3 percent, sequentially from $11.8 million for the quarter ended March 31, 2007 to $10.8 million for the quarter ended June 30, 2007 because of decreased accruals for incentive compensation. In addition, a larger percentage of payroll costs were capitalized as direct loan origination costs, as a result of higher loan volume, and the employer’s portion of payroll taxes decreased. Other operating expenses increased $648,000, or 23.2 percent, sequentially from $2.8 million for the quarter ended March 31, 2007 to $3.4 million for the quarter ended June 30, 2007 as the Company incurred increased deposit operations losses and increased the amortization and write-downs of loan servicing assets.
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The efficiency ratio (non-interest expenses divided by the sum of net interest income before provision for credit losses and non-interest income) for the second quarter of 2007 was 43.61 percent, compared to 43.64 percent for the first quarter of 2007 and 42.06 percent for the second quarter of 2006, reflecting the acquisitions of two insurance agencies in the first quarter of 2007.
PROVISION FOR INCOME TAXES
The provision for income taxes reflects a 38.1 percent effective tax rate for the second quarter of 2007, compared to a 37.7 percent effective tax rate for the first quarter of 2007 and a 39.5 percent effective tax rate for the second quarter of 2006. The periodic effective tax rates reflect a stable level of Enterprise Zone and low-income housing tax credits in periods in which there were fluctuations in taxable income.
FINANCIAL POSITION
Total assets were $3.87 billion at June 30, 2007, an increase of $145.7 million, or 3.9 percent, compared to $3.73 billion at December 31, 2006, and an increase of $247.2 million, or 6.8 percent, from the June 30, 2006 balance of $3.62 billion.
At June 30, 2007, net loans totaled $3.02 billion, an increase of $186.3 million, or 6.6 percent, from $2.84 billion at December 31, 2006. Real estate loans increased by $21.1 million, or 2.0 percent, to $1.06 billion at June 30, 2007, compared to $1.04 billion at December 31, 2006, and commercial and industrial loans grew by $171.7 million, or 9.9 percent, to $1.90 billion at June 30, 2007, compared to $1.73 billion at December 31, 2006.
The growth in total assets was funded primarily by an increase in FHLB advances and other borrowings of $109.7 million, up 64.9 percent to $278.8 million at June 30, 2007, compared to $169.0 million at December 31, 2006. In addition, deposits increased $28.4 million, up 1.0 percent to $2.97 billion at June 30, 2007 from $2.94 billion at December 31, 2006. The increase in deposits included increases in time deposits of $100,000 or more of $24.9 million, up 1.8 percent to $1.41 billion, in other time deposits of $13.2 million, up 4.5 percent to $308.7 million, and in money market checking accounts of $706,000, up 0.2 percent to $439.0 million, partially offset by decreases in noninterest-bearing demand deposits of $8.1 million, down 1.1 percent to $720.2 million, and in savings accounts of $2.2 million, down 2.3 percent to $97.0 million.
ASSET QUALITY
Total non-performing assets, including loans 90 days or more past due and still accruing, non-accrual loans and other real estate owned (“OREO”) assets, increased by $9.5 million to $23.7 million at June 30, 2007 from $14.2 million at December 31, 2006, and increased by $11.6 million from $12.1 million at June 30, 2006. Non-performing loans as a percentage of gross loans increased to 0.74 percent at June 30, 2007 from 0.50 percent at December 31, 2006 and 0.43 percent at June 30, 2006.
At June 30, 2007, delinquent loans were $32.0 million, or 1.05 percent of gross loans, compared to $19.6 million, or 0.68 percent of gross loans, at December 31, 2006, and $23.1 million, or 0.83 percent of gross loans, at June 30, 2006.
At June 30, 2007, the Company maintained an allowance for loan losses of $32.2 million and a liability for off-balance sheet exposure, primarily unfunded loan commitments, of $1.7 million. The allowance for loan losses represented 1.05 percent of gross loans at June 30, 2007, compared to 0.96 percent and 0.98 percent at December 31, 2006 and June 30, 2006, respectively. As of June 30, 2007, the allowance for loan losses was 142.3 percent of non-performing loans, compared to 193.9 percent at December 31, 2006 and 224.5 percent at June 30, 2006.
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ABOUT HANMI FINANCIAL CORPORATION
Headquartered in Los Angeles, Hanmi Bank, a wholly owned subsidiary of Hanmi Financial Corporation, provides services to the multi-ethnic communities of California, with 23 full-service offices in Los Angeles, Orange, San Francisco, Santa Clara and San Diego counties, and nine loan production offices in California, Colorado, Georgia, Illinois, Texas, Virginia and Washington. Hanmi Bank specializes in commercial, SBA, trade finance and consumer lending, and is a recognized community leader. Hanmi Bank’s mission is to provide a full range of quality products and premier services to its customers and to maximize shareholder value. Additional information is available atwww.hanmifinancial.com.
FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statement. These factors include the following: general economic and business conditions in those areas in which we operate; demographic changes; competition for loans and deposits; fluctuations in interest rates; risks of natural disasters related to our real estate portfolio; risks associated with SBA loans; changes in governmental regulation; credit quality; our ability to successfully integrate acquisitions we may make; the availability of capital to fund the expansion of our business; and changes in securities markets. In addition, we set forth certain risks in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2006, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.
CONTACT
| | | | | |
| | | Hanmi Financial Corporation | | |
| |
| | | Michael J. Winiarski | | Stephanie Yoon |
| | | Chief Financial Officer | | Investor Relations |
| | | (213) 368-3200 | | (213) 427-5631 |
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HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS(UNAUDITED)
(Dollars in Thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | June 30, | | | December 31, | | | % | | | June 30, | | | % | |
| | | 2007 | | | 2006 | | | Change | | | 2006 | | | Change | |
ASSETS | | | | | | | | | | | | | | | | | | | | |
| Cash and Due from Banks | | $ | 98,020 | | | $ | 97,501 | | | | 0.5 | % | | $ | 110,271 | | | | (11.1 | )% |
| Federal Funds Sold | | | 23,800 | | | | 41,000 | | | | (42.0 | )% | | | 1,100 | | | | 2,063.6 | % |
| | | | | | | | | | | | | | | | |
| Cash and Cash Equivalents | | | 121,820 | | | | 138,501 | | | | (12.0 | )% | | | 111,371 | | | | 9.4 | % |
| | | | | | | | | | | | | | | | |
| Term Federal Funds Sold | | | — | | | | 5,000 | | | | (100.0 | )% | | | — | | | | — | |
| Investment Securities | | | 364,732 | | | | 391,579 | | | | (6.9 | )% | | | 410,050 | | | | (11.1 | )% |
| Loans: | | | | | | | | | | | | | | | | | | | | |
| Loans, Net of Deferred Loan Fees | | | 3,055,921 | | | | 2,864,947 | | | | 6.7 | % | | | 2,787,970 | | | | 9.6 | % |
| Allowance for Loan Losses | | | (32,190 | ) | | | (27,557 | ) | | | 16.8 | % | | | (27,250 | ) | | | 18.1 | % |
| | | | | | | | | | | | | | | | |
| Net Loans | | | 3,023,731 | | | | 2,837,390 | | | | 6.6 | % | | | 2,760,720 | | | | 9.5 | % |
| | | | | | | | | | | | | | | | |
| Customers’ Liability on Acceptances | | | 12,753 | | | | 8,403 | | | | 51.8 | % | | | 11,057 | | | | 15.3 | % |
| Premises and Equipment, Net | | | 20,361 | | | | 20,075 | | | | 1.4 | % | | | 20,312 | | | | 0.2 | % |
| Accrued Interest Receivable | | | 17,313 | | | | 16,919 | | | | 2.3 | % | | | 14,899 | | | | 16.2 | % |
| Other Real Estate Owned | | | 1,080 | | | | — | | | | — | | | | — | | | | — | |
| Deferred Income Taxes | | | 13,742 | | | | 13,064 | | | | 5.2 | % | | | 11,681 | | | | 17.6 | % |
| Servicing Asset | | | 4,417 | | | | 4,579 | | | | (3.5 | )% | | | 4,302 | | | | 2.7 | % |
| Goodwill | | | 209,941 | | | | 207,646 | | | | 1.1 | % | | | 207,646 | | | | 1.1 | % |
| Other Intangible Assets | | | 8,027 | | | | 6,312 | | | | 27.2 | % | | | 7,461 | | | | 7.6 | % |
| Federal Reserve Bank and Federal Home Loan Bank Stock | | | 25,352 | | | | 24,922 | | | | 1.7 | % | | | 24,603 | | | | 3.0 | % |
| Bank-Owned Life Insurance | | | 24,051 | | | | 23,592 | | | | 1.9 | % | | | 23,146 | | | | 3.9 | % |
| Other Assets | | | 23,577 | | | | 27,261 | | | | (13.5 | )% | | | 16,401 | | | | 43.8 | % |
| | | | | | | | | | | | | | | | |
Total Assets | | $ | 3,870,897 | | | $ | 3,725,243 | | | | 3.9 | % | | $ | 3,623,649 | | | | 6.8 | % |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | |
| Liabilities: | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Noninterest-Bearing | | $ | 720,214 | | | $ | 728,348 | | | | (1.1 | )% | | $ | 778,445 | | | | (7.5 | )% |
| Interest-Bearing | | | 2,252,932 | | | | 2,216,367 | | | | 1.6 | % | | | 2,116,567 | | | | 6.4 | % |
| | | | | | | | | | | | | | | | |
| Total Deposits | | | 2,973,146 | | | | 2,944,715 | | | | 1.0 | % | | | 2,895,012 | | | | 2.7 | % |
| Accrued Interest Payable | | | 23,343 | | | | 22,582 | | | | 3.4 | % | | | 15,319 | | | | 52.4 | % |
| Acceptances Outstanding | | | 12,753 | | | | 8,403 | | | | 51.8 | % | | | 11,057 | | | | 15.3 | % |
| FHLB Advances and Other Borrowings | | | 278,784 | | | | 169,037 | | | | 64.9 | % | | | 156,872 | | | | 77.7 | % |
| Junior Subordinated Debentures | | | 82,406 | | | | 82,406 | | | | — | | | | 82,406 | | | | — | |
| Other Liabilities | | | 14,431 | | | | 10,983 | | | | 31.4 | % | | | 12,253 | | | | 17.8 | % |
| | | | | | | | | | | | | | | | |
| Total Liabilities | | | 3,384,863 | | | | 3,238,126 | | | | 4.5 | % | | | 3,172,919 | | | | 6.7 | % |
| Shareholders’ Equity | | | 486,034 | | | | 487,117 | | | | (0.2 | )% | | | 450,730 | | | | 7.8 | % |
| | | | | | | | | | | | | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 3,870,897 | | | $ | 3,725,243 | | | | 3.9 | % | | $ | 3,623,649 | | | | 6.8 | % |
| | | | | | | | | | | | | | | | |
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HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME(UNAUDITED)
(Dollars in Thousands, Except Per Share Data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the Three Months Ended | | | For the Six Months Ended | |
| | | June 30, | | | March 31, | | | % | | | June 30, | | | % | | | June 30, | | | June 30, | | | % | |
| | | 2007 | | | 2007 | | | Change | | | 2006 | | | Change | | | 2007 | | | 2006 | | | Change | |
| INTEREST INCOME: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest and Fees on Loans | | $ | 65,212 | | | $ | 62,561 | | | | 4.2 | % | | $ | 58,870 | | | | 10.8 | % | | $ | 127,773 | | | $ | 112,017 | | | | 14.1 | % |
| Interest on Investments | | | 4,472 | | | | 4,664 | | | | (4.1 | )% | | | 5,013 | | | | (10.8 | )% | | | 9,136 | | | | 10,112 | | | | (9.7 | )% |
| Interest on Federal Funds Sold | | | 176 | | | | 726 | | | | (75.8 | )% | | | 23 | | | | 665.2 | % | | | 902 | | | | 312 | | | | 189.1 | % |
| Interest on Term Federal Funds Sold | | | — | | | | 5 | | | | (100.0 | )% | | | — | | | | — | | | | 5 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Interest Income | | | 69,860 | | | | 67,956 | | | | 2.8 | % | | | 63,906 | | | | 9.3 | % | | | 137,816 | | | | 122,441 | | | | 12.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| INTEREST EXPENSE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest on Deposits | | | 26,691 | | | | 26,081 | | | | 2.3 | % | | | 21,921 | | | | 21.8 | % | | | 52,772 | | | | 41,512 | | | | 27.1 | % |
| Interest on FHLB Advances and Other Borrowings | | | 2,919 | | | | 2,171 | | | | 34.5 | % | | | 2,001 | | | | 45.9 | % | | | 5,090 | | | | 2,615 | | | | 94.6 | % |
| Interest on Junior Subordinated Debentures | | | 1,660 | | | | 1,639 | | | | 1.3 | % | | | 1,587 | | | | 4.6 | % | | | 3,299 | | | | 3,062 | | | | 7.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Interest Expense | | | 31,270 | | | | 29,891 | | | | 4.6 | % | | | 25,509 | | | | 22.6 | % | | | 61,161 | | | | 47,189 | | | | 29.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES | | | 38,590 | | | | 38,065 | | | | 1.4 | % | | | 38,397 | | | | 0.5 | % | | | 76,655 | | | | 75,252 | | | | 1.9 | % |
| Provision for Credit Losses | | | 3,023 | | | | 6,132 | | | | (50.7 | )% | | | 900 | | | | 235.9 | % | | | 9,155 | | | | 3,860 | | | | 137.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | | | 35,567 | | | | 31,933 | | | | 11.4 | % | | | 37,497 | | | | (5.1 | )% | | | 67,500 | | | | 71,392 | | | | (5.5 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| NON-INTEREST INCOME: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Service Charges on Deposit Accounts | | | 4,438 | | | | 4,488 | | | | (1.1 | )% | | | 4,183 | | | | 6.1 | % | | | 8,926 | | | | 8,414 | | | | 6.1 | % |
| Insurance Commissions | | | 1,279 | | | | 1,125 | | | | 13.7 | % | | | 243 | | | | 426.3 | % | | | 2,404 | | | | 396 | | | | 507.1 | % |
| Trade Finance Fees | | | 1,177 | | | | 1,290 | | | | (8.8 | )% | | | 1,116 | | | | 5.5 | % | | | 2,467 | | | | 2,187 | | | | 12.8 | % |
| Remittance Fees | | | 520 | | | | 471 | | | | 10.4 | % | | | 532 | | | | (2.3 | )% | | | 991 | | | | 1,020 | | | | (2.8 | )% |
| Other Service Charges and Fees | | | 574 | | | | 616 | | | | (6.8 | )% | | | 614 | | | | (6.5 | )% | | | 1,190 | | | | 1,148 | | | | 3.7 | % |
| Bank-Owned Life Insurance Income | | | 229 | | | | 230 | | | | (0.4 | )% | | | 215 | | | | 6.5 | % | | | 459 | | | | 433 | | | | 6.0 | % |
| Increase in Fair Value of Derivatives | | | 222 | | | | 92 | | | | 141.3 | % | | | 109 | | | | 103.7 | % | | | 314 | | | | 334 | | | | (6.0 | )% |
| Other Income | | | 491 | | | | 275 | | | | 78.5 | % | | | 345 | | | | 42.3 | % | | | 766 | | | | 626 | | | | 22.4 | % |
| Gain on Sales of Loans | | | 1,762 | | | | 1,400 | | | | 25.9 | % | | | 1,311 | | | | 34.4 | % | | | 3,162 | | | | 2,150 | | | | 47.1 | % |
| Gain on Sales of Securities Available for Sale | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 5 | | | | (100.0 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Non-Interest Income | | | 10,692 | | | | 9,987 | | | | 7.1 | % | | | 8,668 | | | | 23.4 | % | | | 20,679 | | | | 16,713 | | | | 23.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| NON-INTEREST EXPENSES: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Salaries and Employee Benefits | | | 10,782 | | | | 11,761 | | | | (8.3 | )% | | | 10,691 | | | | 0.9 | % | | | 22,543 | | | | 19,852 | | | | 13.6 | % |
| Occupancy and Equipment | | | 2,571 | | | | 2,512 | | | | 2.3 | % | | | 2,670 | | | | (3.7 | )% | | | 5,083 | | | | 4,876 | | | | 4.2 | % |
| Data Processing | | | 1,665 | | | | 1,563 | | | | 6.5 | % | | | 1,218 | | | | 36.7 | % | | | 3,228 | | | | 2,647 | | | | 21.9 | % |
| Advertising and Promotion | | | 889 | | | | 661 | | | | 34.5 | % | | | 811 | | | | 9.6 | % | | | 1,550 | | | | 1,457 | | | | 6.4 | % |
| Supplies and Communications | | | 704 | | | | 588 | | | | 19.7 | % | | | 576 | | | | 22.2 | % | | | 1,292 | | | | 1,212 | | | | 6.6 | % |
| Professional Fees | | | 647 | | | | 474 | | | | 36.5 | % | | | 492 | | | | 31.5 | % | | | 1,121 | | | | 1,160 | | | | (3.4 | )% |
| Amortization of Other Intangible Assets | | | 592 | | | | 614 | | | | (3.6 | )% | | | 605 | | | | (2.1 | )% | | | 1,206 | | | | 1,230 | | | | (2.0 | )% |
| Decrease in Fair Value of Embedded Option | | | 196 | | | | — | | | | — | | | | 112 | | | | 75.0 | % | | | 196 | | | | 214 | | | | (8.4 | )% |
| Other Operating Expenses | | | 3,444 | | | | 2,796 | | | | 23.2 | % | | | 2,622 | | | | 31.4 | % | | | 6,240 | | | | 4,889 | | | | 27.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Non-Interest Expenses | | | 21,490 | | | | 20,969 | | | | 2.5 | % | | | 19,797 | | | | 8.6 | % | | | 42,459 | | | | 37,537 | | | | 13.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| INCOME BEFORE PROVISION FOR INCOME TAXES | | | 24,769 | | | | 20,951 | | | | 18.2 | % | | | 26,368 | | | | (6.1 | )% | | | 45,720 | | | | 50,568 | | | | (9.6 | )% |
| Provision for Income Taxes | | | 9,446 | | | | 7,896 | | | | 19.6 | % | | | 10,428 | | | | (9.4 | )% | | | 17,342 | | | | 19,826 | | | | (12.5 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | |
NET INCOME | | $ | 15,323 | | | $ | 13,055 | | | | 17.4 | % | | $ | 15,940 | | | | (3.9 | )% | | $ | 28,378 | | | $ | 30,742 | | | | (7.7 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EARNINGS PER SHARE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.32 | | | $ | 0.27 | | | | 18.5 | % | | $ | 0.33 | | | | (3.0 | )% | | $ | 0.58 | | | $ | 0.63 | | | | (7.9 | )% |
| Diluted | | $ | 0.31 | | | $ | 0.26 | | | | 19.2 | % | | $ | 0.32 | | | | (3.1 | )% | | $ | 0.58 | | | $ | 0.62 | | | | (6.5 | )% |
WEIGHTED-AVERAGE SHARES OUTSTANDING: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | | 48,397,824 | | | | 48,962,089 | | | | | | | | 48,822,729 | | | | | | | | 48,678,399 | | | | 48,768,881 | | | | | |
| Diluted | | | 48,737,574 | | | | 49,500,312 | | | | | | | | 49,404,204 | | | | | | | | 49,110,835 | | | | 49,366,709 | | | | | |
SHARES OUTSTANDING AT PERIOD-END | | | 47,950,929 | | | | 48,825,537 | | | | | | | | 48,908,580 | | | | | | | | 47,950,929 | | | | 48,908,580 | | | | | |
- 6 -
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA(UNAUDITED)
(Dollars in Thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the Three Months Ended | | | For the Six Months Ended | |
| | | June 30, | | | March 31, | | | % | | | June 30, | | | % | | | June 30, | | | June 30, | | | % | |
| | | 2007 | | | 2007 | | | Change | | | 2006 | | | Change | | | 2007 | | | 2006 | | | Change | |
AVERAGE BALANCES: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Average Gross Loans, Net of Deferred Loan Fees | | $ | 3,014,895 | | | $ | 2,882,632 | | | | 4.6 | % | | $ | 2,729,218 | | | | 10.5 | % | | $ | 2,949,129 | | | $ | 2,638,822 | | | | 11.8 | % |
| Average Investment Securities | | | 375,598 | | | | 386,688 | | | | (2.9 | )% | | | 425,371 | | | | (11.7 | )% | | | 381,113 | | | | 431,440 | | | | (11.7 | )% |
| Average Interest-Earning Assets | | | 3,429,123 | | | | 3,350,245 | | | | 2.4 | % | | | 3,180,999 | | | | 7.8 | % | | | 3,414,585 | | | | 3,109,051 | | | | 9.8 | % |
| Average Total Assets | | | 3,818,170 | | | | 3,740,936 | | | | 2.1 | % | | | 3,570,389 | | | | 6.9 | % | | | 3,780,147 | | | | 3,497,310 | | | | 8.1 | % |
| Average Deposits | | | 2,967,748 | | | | 2,945,386 | | | | 0.8 | % | | | 2,832,218 | | | | 4.8 | % | | | 2,956,629 | | | | 2,821,648 | | | | 4.8 | % |
| Average Borrowings | | | 304,744 | | | | 251,594 | | | | 21.1 | % | | | 248,480 | | | | 22.6 | % | | | 278,316 | | | | 193,691 | | | | 43.7 | % |
| Average Interest-Bearing Liabilities | | | 2,551,665 | | | | 2,487,429 | | | | 2.6 | % | | | 2,341,481 | | | | 9.0 | % | | | 2,519,725 | | | | 2,278,944 | | | | 10.6 | % |
| Average Shareholders’ Equity | | | 495,719 | | | | 495,832 | | | | — | | | | 449,664 | | | | 10.2 | % | | | 497,444 | | | | 443,507 | | | | 12.2 | % |
| Average Tangible Equity | | | 277,414 | | | | 276,918 | | | | 0.2 | % | | | 232,802 | | | | 19.2 | % | | | 277,778 | | | | 226,645 | | | | 22.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
PERFORMANCE RATIOS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Return on Average Assets | | | 1.61 | % | | | 1.42 | % | | | | | | | 1.79 | % | | | | | | | 1.51 | % | | | 1.77 | % | | | | |
| Return on Average Shareholders’ Equity | | | 12.40 | % | | | 10.68 | % | | | | | | | 14.22 | % | | | | | | | 11.50 | % | | | 13.98 | % | | | | |
| Return on Average Tangible Equity | | | 22.15 | % | | | 19.12 | % | | | | | | | 27.46 | % | | | | | | | 20.60 | % | | | 27.35 | % | | | | |
| Efficiency Ratio | | | 43.61 | % | | | 43.64 | % | | | | | | | 42.06 | % | | | | | | | 43.62 | % | | | 40.82 | % | | | | |
| Net Interest Margin | | | 4.51 | % | | | 4.61 | % | | | | | | | 4.84 | % | | | | | | | 4.53 | % | | | 4.88 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ALLOWANCE FOR LOAN LOSSES: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Balance at the Beginning of Period | | $ | 31,527 | | | $ | 27,557 | | | | 14.4 | % | | $ | 26,703 | | | | 18.1 | % | | $ | 27,557 | | | $ | 24,963 | | | | 10.4 | % |
| Provision Charged to Operating Expense | | | 3,181 | | | | 6,374 | | | | (50.1 | )% | | | 900 | | | | 253.4 | % | | | 9,555 | | | | 3,860 | | | | 147.5 | % |
| Charge-Offs, Net of Recoveries | | | (2,518 | ) | | | (2,404 | ) | | | 4.7 | % | | | (353 | ) | | | 613.3 | % | | | (4,922 | ) | | | (1,573 | ) | | | 212.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Balance at the End of Period | | $ | 32,190 | | | $ | 31,527 | | | | 2.1 | % | | $ | 27,250 | | | | 18.1 | % | | $ | 32,190 | | | $ | 27,250 | | | | 18.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for Loan Losses to Total Gross Loans | | | 1.05 | % | | | 1.08 | % | | | | | | | 0.98 | % | | | | | | | 1.05 | % | | | 0.98 | % | | | | |
Allowance for Loan Losses to Total Non-Performing Loans | | | 142.30 | % | | | 161.55 | % | | | | | | | 224.54 | % | | | | | | | 142.30 | % | | | 224.54 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Balance at the Beginning of Period | | $ | 1,888 | | | $ | 2,130 | | | | (11.4 | )% | | $ | 2,130 | | | | (11.4 | )% | | $ | 2,130 | | | $ | 2,130 | | | | — | |
| Provision Charged to Operating Expense | | | (158 | ) | | | (242 | ) | | | (34.7 | )% | | | — | | | | — | | | | (400 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Balance at the End of Period | | $ | 1,730 | | | $ | 1,888 | | | | (8.4 | )% | | $ | 2,130 | | | | (18.8 | )% | | $ | 1,730 | | | $ | 2,130 | | | | (18.8 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | |
- 7 -
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA(UNAUDITED) (Continued)
(Dollars in Thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | June 30, | | | December 31, | | | % | | | June 30, | | | % | |
| | | 2007 | | | 2006 | | | Change | | | 2006 | | | Change | |
NON-PERFORMING ASSETS: | | | | | | | | | | | | | | | | | | | | |
| Non-Accrual Loans | | $ | 22,442 | | | $ | 14,213 | | | | 57.9 | % | | $ | 12,001 | | | | 87.0 | % |
| Loans 90 Days or More Past Due and Still Accruing | | | 179 | | | | 2 | | | | 8,850.0 | % | | | 135 | | | | 32.6 | % |
| | | | | | | | | | | | | | | | |
| Total Non-Performing Loans | | | 22,621 | | | | 14,215 | | | | 59.1 | % | | | 12,136 | | | | 86.4 | % |
| Other Real Estate Owned | | | 1,080 | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| Total Non-Performing Assets | | $ | 23,701 | | | $ | 14,215 | | | | 66.7 | % | | $ | 12,136 | | | | 95.3 | % |
| | | | | | | | | | | | | | | | |
Total Non-Performing Loans/Total Gross Loans | | | 0.74 | % | | | 0.50 | % | | | | | | | 0.43 | % | | | | |
Total Non-Performing Assets/Total Assets | | | 0.61 | % | | | 0.38 | % | | | | | | | 0.33 | % | | | | |
Total Non-Performing Assets/Allowance for Loan Losses | | | 73.6 | % | | | 51.6 | % | | | | | | | 44.5 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | |
DELINQUENT LOANS | | $ | 31,979 | | | $ | 19,616 | | | | 63.0 | % | | $ | 23,084 | | | | 38.5 | % |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Delinquent Loans/Total Gross Loans | | | 1.05 | % | | | 0.68 | % | | | | | | | 0.83 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | |
LOAN PORTFOLIO: | | | | | | | | | | | | | | | | | | | | |
| Real Estate Loans | | $ | 1,062,460 | | | $ | 1,041,393 | | | | 2.0 | % | | $ | 1,029,462 | | | | 3.2 | % |
| Commercial and Industrial Loans | | | 1,898,097 | | | | 1,726,434 | | | | 9.9 | % | | | 1,663,449 | | | | 14.1 | % |
| Consumer Loans | | | 97,496 | | | | 100,121 | | | | (2.6 | )% | | | 98,974 | | | | (1.5 | )% |
| | | | | | | | | | | | | | | | |
| Total Gross Loans | | | 3,058,053 | | | | 2,867,948 | | | | 6.6 | % | | | 2,791,885 | | | | 9.5 | % |
| Deferred Loan Fees | | | (2,132 | ) | | | (3,001 | ) | | | (29.0 | )% | | | (3,915 | ) | | | (45.5 | )% |
| Allowance for Loan Losses | | | (32,190 | ) | | | (27,557 | ) | | | 16.8 | % | | | (27,250 | ) | | | 18.1 | % |
| | | | | | | | | | | | | | | | |
| Loans Receivable, Net | | $ | 3,023,731 | | | $ | 2,837,390 | | | | 6.6 | % | | $ | 2,760,720 | | | | 9.5 | % |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
LOAN MIX: | | | | | | | | | | | | | | | | | | | | |
| Real Estate Loans | | | 34.7 | % | | | 36.3 | % | | | | | | | 36.9 | % | | | | |
| Commercial and Industrial Loans | | | 62.1 | % | | | 60.2 | % | | | | | | | 59.6 | % | | | | |
| Consumer Loans | | | 3.2 | % | | | 3.5 | % | | | | | | | 3.5 | % | | | | |
| | | | | | | | | | | | | | | | | | |
| Total Gross Loans | | | 100.0 | % | | | 100.0 | % | | | | | | | 100.0 | % | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
DEPOSIT PORTFOLIO: | | | | | | | | | | | | | | | | | | | | |
| Demand — Noninterest-Bearing | | $ | 720,214 | | | $ | 728,348 | | | | (1.1 | )% | | $ | 778,445 | | | | (7.5 | )% |
| Savings | | | 97,019 | | | | 99,254 | | | | (2.3 | )% | | | 110,492 | | | | (12.2 | )% |
| Money Market Checking and NOW Accounts | | | 438,973 | | | | 438,267 | | | | 0.2 | % | | | 440,970 | | | | (0.5 | )% |
| Time Deposits of $100,000 or More | | | 1,408,237 | | | | 1,383,358 | | | | 1.8 | % | | | 1,287,257 | | | | 9.4 | % |
| Other Time Deposits | | | 308,703 | | | | 295,488 | | | | 4.5 | % | | | 277,848 | | | | 11.1 | % |
| | | | | | | | | | | | | | | | |
| Total Deposits | | $ | 2,973,146 | | | $ | 2,944,715 | | | | 1.0 | % | | $ | 2,895,012 | | | | 2.7 | % |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
DEPOSIT MIX: | | | | | | | | | | | | | | | | | | | | |
| Demand — Noninterest-Bearing | | | 24.2 | % | | | 24.7 | % | | | | | | | 26.9 | % | | | | |
| Savings | | | 3.3 | % | | | 3.4 | % | | | | | | | 3.8 | % | | | | |
| Money Market Checking and NOW Accounts | | | 14.8 | % | | | 14.9 | % | | | | | | | 15.2 | % | | | | |
| Time Deposits of $100,000 or More | | | 47.4 | % | | | 47.0 | % | | | | | | | 44.5 | % | | | | |
| Other Time Deposits | | | 10.3 | % | | | 10.0 | % | | | | | | | 9.6 | % | | | | |
| | | | | | | | | | | | | | | | | | |
| Total Deposits | | | 100.0 | % | | | 100.0 | % | | | | | | | 100.0 | % | | | | |
| | | | | | | | | | | | | | | | | | |
- 8 -
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID(UNAUDITED)
(Dollars in Thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the Three Months Ended | | | For the Six Months Ended | |
| | | June 30, 2007 | | | March 31, 2007 | | | June 30, 2006 | | | June 30, 2007 | | | June 30, 2006 | |
| | | | | | | Interest | | | Average | | | | | | | Interest | | | Average | | | | | | | Interest | | | Average | | | | | | | Interest | | | Average | | | | | | | Interest | | | Average | |
| | | Average | | | Income/ | | | Yield/ | | | Average | | | Income/ | | | Yield/ | | | Average | | | Income/ | | | Yield/ | | | Average | | | Income/ | | | Yield/ | | | Average | | | Income/ | | | Yield/ | |
| | | Balance | | | Expense | | | Rate | | | Balance | | | Expense | | | Rate | | | Balance | | | Expense | | | Rate | | | Balance | | | Expense | | | Rate | | | Balance | | | Expense | | | Rate | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
INTEREST-EARNING ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LOANS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Real Estate Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial Property | | $ | 769,112 | | | $ | 15,534 | | | | 8.10 | % | | $ | 752,673 | | | $ | 15,168 | | | | 8.17 | % | | $ | 761,626 | | | $ | 15,425 | | | | 8.12 | % | | $ | 760,938 | | | $ | 30,702 | | | | 8.14 | % | | $ | 747,442 | | | $ | 29,931 | | | | 8.08 | % |
| Construction | | | 215,760 | | | | 5,137 | | | | 9.55 | % | | | 212,370 | | | | 4,937 | | | | 9.43 | % | | | 179,588 | | | | 4,286 | | | | 9.57 | % | | | 214,074 | | | | 10,075 | | | | 9.49 | % | | | 170,293 | | | | 8,052 | | | | 9.54 | % |
| Residential Property | | | 86,596 | | | | 1,157 | | | | 5.36 | % | | | 85,022 | | | | 1,097 | | | | 5.23 | % | | | 86,091 | | | | 1,107 | | | | 5.16 | % | | | 85,813 | | | | 2,254 | | | | 5.30 | % | | | 86,352 | | | | 2,189 | | | | 5.11 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Real Estate Loans | | | 1,071,468 | | | | 21,828 | | | | 8.17 | % | | | 1,050,065 | | | | 21,202 | | | | 8.19 | % | | | 1,027,305 | | | | 20,818 | | | | 8.13 | % | | | 1,060,825 | | | | 43,031 | | | | 8.18 | % | | | 1,004,087 | | | | 40,172 | | | | 8.07 | % |
| Commercial and Industrial Loans | | | 1,848,369 | | | | 41,206 | | | | 8.94 | % | | | 1,736,530 | | | | 38,769 | | | | 9.05 | % | | | 1,608,638 | | | | 35,905 | | | | 8.95 | % | | | 1,792,760 | | | | 79,973 | | | | 9.00 | % | | | 1,543,507 | | | | 67,737 | | | | 8.85 | % |
| Consumer Loans | | | 97,175 | | | | 2,016 | | | | 8.32 | % | | | 98,634 | | | | 2,173 | | | | 8.93 | % | | | 97,169 | | | | 2,081 | | | | 8.59 | % | | | 97,900 | | | | 4,189 | | | | 8.63 | % | | | 95,079 | | | | 3,964 | | | | 8.41 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Loans — Gross | | | 3,017,012 | | | | 65,050 | | | | 8.65 | % | | | 2,885,229 | | | | 62,144 | | | | 8.74 | % | | | 2,733,112 | | | | 58,804 | | | | 8.63 | % | | | 2,951,485 | | | | 127,193 | | | | 8.69 | % | | | 2,642,673 | | | | 111,873 | | | | 8.54 | % |
| Prepayment Penalty Income | | | — | | | | 162 | | | | | | | | — | | | | 417 | | | | | | | | | | | | 66 | | | | | | | | — | | | | 580 | | | | | | | | — | | | | 144 | | | | | |
| Unearned Income on Loans, Net of Costs | | | (2,117 | ) | | | — | | | | | | | | (2,597 | ) | | | — | | | | | | | | (3,894 | ) | | | — | | | | | | | | (2,356 | ) | | | — | | | | | | | | (3,851 | ) | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross Loans, Net | | $ | 3,014,895 | | | $ | 65,212 | | | | 8.68 | % | | $ | 2,882,632 | | | $ | 62,561 | | | | 8.80 | % | | $ | 2,729,218 | | | $ | 58,870 | | | | 8.65 | % | | $ | 2,949,129 | | | $ | 127,773 | | | | 8.74 | % | | $ | 2,638,822 | | | $ | 112,017 | | | | 8.56 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
INVESTMENT SECURITIES: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Municipal Bonds | | $ | 72,284 | | | $ | 762 | | | | 4.22 | % | | $ | 72,396 | | | $ | 764 | | | | 4.22 | % | | $ | 73,061 | | | $ | 773 | | | | 4.23 | % | | $ | 72,340 | | | $ | 1,526 | | | | 4.22 | % | | $ | 73,414 | | | $ | 1,551 | | | | 4.23 | % |
| U.S. Government Agency Securities | | | 118,696 | | | | 1,233 | | | | 4.16 | % | | | 118,267 | | | | 1,256 | | | | 4.25 | % | | | 127,184 | | | | 1,316 | | | | 4.14 | % | | | 118,483 | | | | 2,489 | | | | 4.20 | % | | | 126,843 | | | | 2,619 | | | | 4.13 | % |
| Mortgage-Backed Securities | | | 111,568 | | | | 1,317 | | | | 4.72 | % | | | 118,899 | | | | 1,404 | | | | 4.72 | % | | | 136,514 | | | | 1,612 | | | | 4.72 | % | | | 115,213 | | | | 2,721 | | | | 4.72 | % | | | 140,511 | | | | 3,282 | | | | 4.67 | % |
| Collateralized Mortgage Obligations | | | 60,199 | | | | 651 | | | | 4.33 | % | | | 64,208 | | | | 697 | | | | 4.34 | % | | | 75,728 | | | | 810 | | | | 4.28 | % | | | 62,193 | | | | 1,348 | | | | 4.33 | % | | | 77,703 | | | | 1,657 | | | | 4.26 | % |
| Corporate Bonds | | | 7,907 | | | | 89 | | | | 4.50 | % | | | 7,869 | | | | 90 | | | | 4.57 | % | | | 7,903 | | | | 89 | | | | 4.50 | % | | | 7,888 | | | | 179 | | | | 4.54 | % | | | 7,968 | | | | 179 | | | | 4.49 | % |
| Other Securities | | | 4,944 | | | | 84 | | | | 6.80 | % | | | 5,049 | | | | 84 | | | | 6.65 | % | | | 4,981 | | | | 83 | | | | 6.67 | % | | | 4,996 | | | | 168 | | | | 6.73 | % | | | 5,001 | | | | 168 | | | | 6.72 | % |
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Total Investment Securities | | $ | 375,598 | | | $ | 4,136 | | | | 4.40 | % | | $ | 386,688 | | | $ | 4,295 | | | | 4.44 | % | | $ | 425,371 | | | $ | 4,683 | | | | 4.40 | % | | $ | 381,113 | | | $ | 8,431 | | | | 4.42 | % | | $ | 431,440 | | | $ | 9,456 | | | | 4.38 | % |
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OTHER INTEREST-EARNING ASSETS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Equity Securities (FHLB and FRB Stock) | | $ | 25,290 | | | $ | 336 | | | | 5.31 | % | | $ | 25,008 | | | $ | 369 | | | | 5.90 | % | | $ | 24,524 | | | $ | 330 | | | | 5.38 | % | | $ | 49,833 | | | $ | 705 | | | | 2.83 | % | | $ | 24,567 | | | $ | 655 | | | | 5.33 | % |
| Federal Funds Sold | | | 13,340 | | | | 176 | | | | 5.28 | % | | | 55,528 | | | | 726 | | | | 5.23 | % | | | 1,859 | | | | 23 | | | | 4.95 | % | | | 34,317 | | | | 902 | | | | 5.26 | % | | | 14,158 | | | | 312 | | | | 4.41 | % |
| Term Federal Funds Sold | | | — | | | | — | | | | — | | | | 389 | | | | 5 | | | | 5.14 | % | | | — | | | | — | | | | — | | | | 193 | | | | 5 | | | | 5.18 | % | | | — | | | | — | | | | — | |
| Interest-Earning Deposits | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 27 | | | | — | | | | 3.64 | % | | | — | | | | — | | | | — | | | | 64 | | | | 1 | | | | 4.01 | % |
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Total Other Interest-Earning Assets | | $ | 38,630 | | | $ | 512 | | | | 5.30 | % | | $ | 80,925 | | | $ | 1,100 | | | | 5.44 | % | | $ | 26,410 | | | $ | 353 | | | | 5.35 | % | | $ | 84,343 | | | $ | 1,612 | | | | 3.82 | % | | $ | 38,789 | | | $ | 968 | | | | 4.99 | % |
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TOTAL INTEREST-EARNING ASSETS | | $ | 3,429,123 | | | $ | 69,860 | | | | 8.17 | % | | $ | 3,350,245 | | | $ | 67,956 | | | | 8.23 | % | | $ | 3,180,999 | | | $ | 63,906 | | | | 8.06 | % | | $ | 3,414,585 | | | $ | 137,816 | | | | 8.14 | % | | $ | 3,109,051 | | | $ | 122,441 | | | | 7.94 | % |
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INTEREST-BEARING LIABILITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
INTEREST-BEARING DEPOSITS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Savings | | $ | 99,457 | | | $ | 502 | | | | 2.02 | % | | $ | 100,777 | | | $ | 461 | | | | 1.86 | % | | $ | 112,341 | | | $ | 480 | | | | 1.71 | % | | $ | 100,114 | | | $ | 963 | | | | 1.94 | % | | $ | 115,036 | | | $ | 962 | | | | 1.69 | % |
| Money Market Checking and NOW Accounts | | | 432,408 | | | | 3,666 | | | | 3.40 | % | | | 427,871 | | | | 3,472 | | | | 3.29 | % | | | 484,039 | | | | 3,638 | | | | 3.01 | % | | | 430,152 | | | | 7,138 | | | | 3.35 | % | | | 501,735 | | | | 7,352 | | | | 2.95 | % |
| Time Deposits of $100,000 or More | | | 1,411,099 | | | | 18,778 | | | | 5.34 | % | | | 1,406,311 | | | | 18,498 | | | | 5.33 | % | | | 1,223,118 | | | | 14,869 | | | | 4.88 | % | | | 1,408,718 | | | | 37,276 | | | | 5.34 | % | | | 1,195,348 | | | | 27,653 | | | | 4.67 | % |
| Other Time Deposits | | | 303,957 | | | | 3,745 | | | | 4.94 | % | | | 300,876 | | | | 3,650 | | | | 4.92 | % | | | 273,503 | | | | 2,934 | | | | 4.30 | % | | | 302,425 | | | | 7,395 | | | | 4.93 | % | | | 273,134 | | | | 5,545 | | | | 4.09 | % |
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Total Interest-Bearing Deposits | | $ | 2,246,921 | | | $ | 26,691 | | | | 4.76 | % | | $ | 2,235,835 | | | $ | 26,081 | | | | 4.73 | % | | $ | 2,093,001 | | | $ | 21,921 | | | | 4.20 | % | | $ | 2,241,409 | | | $ | 52,772 | | | | 4.75 | % | | $ | 2,085,253 | | | $ | 41,512 | | | | 4.01 | % |
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BORROWINGS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| FHLB Advances and Other Borrowings | | $ | 222,338 | | | $ | 2,919 | | | | 5.27 | % | | $ | 169,188 | | | $ | 2,171 | | | | 5.20 | % | | $ | 166,074 | | | $ | 2,001 | | | | 4.83 | % | | $ | 195,910 | | | $ | 5,090 | | | | 5.24 | % | | $ | 111,285 | | | $ | 2,615 | | | | 4.74 | % |
| Junior Subordinated Debentures | | | 82,406 | | | | 1,660 | | | | 8.08 | % | | | 82,406 | | | | 1,639 | | | | 8.07 | % | | | 82,406 | | | | 1,587 | | | | 7.72 | % | | | 82,406 | | | | 3,299 | | | | 8.07 | % | | | 82,406 | | | | 3,062 | | | | 7.49 | % |
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Total Borrowings | | $ | 304,744 | | | $ | 4,579 | | | | 6.03 | % | | $ | 251,594 | | | $ | 3,810 | | | | 6.14 | % | | $ | 248,480 | | | $ | 3,588 | | | | 5.79 | % | | $ | 278,316 | | | $ | 8,389 | | | | 6.08 | % | | $ | 193,691 | | | $ | 5,677 | | | | 5.91 | % |
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TOTAL INTEREST-BEARING LIABILITIES | | $ | 2,551,665 | | | $ | 31,270 | | | | 4.92 | % | | $ | 2,487,429 | | | $ | 29,891 | | | | 4.87 | % | | $ | 2,341,481 | | | $ | 25,509 | | | | 4.37 | % | | $ | 2,519,725 | | | $ | 61,161 | | | | 4.89 | % | | $ | 2,278,944 | | | $ | 47,189 | | | | 4.18 | % |
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NET INTEREST SPREAD | | | | | | | | | | | 3.25 | % | | | | | | | | | | | 3.36 | % | | | | | | | | | | | 3.69 | % | | | | | | | | | | | 3.25 | % | | | | | | | | | | | 3.76 | % |
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NET INTEREST MARGIN | | | | | | | | | | | 4.51 | % | | | | | | | | | | | 4.61 | % | | | | | | | | | | | 4.84 | % | | | | | | | | | | | 4.53 | % | | | | | | | | | | | 4.88 | % |
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