Hanmi Financial Corporation Reports Third-Quarter 2009 Financial Results and Formalizes Agreement with Regulators

http://www.businesswire.com/news/home/20091105005394/en

LOS ANGELES--(Business Wire)--
Hanmi Financial Corporation (NASDAQ: HAFC) ("we," "our" or "Hanmi"), the holding
company for Hanmi Bank (the "Bank"), reported a third-quarter net loss of $59.7
million, or ($1.26) per share, compared to net income of $4.3 million, or $0.09
per diluted share, in the third quarter of 2008. During the third quarter, we
incurred tax charges of $38.2 million related to a valuation allowance of
deferred tax assets. Excluding this charge, the net loss would have been $21.5
million for the third quarter of 2009, primarily driven by $49.5 million in
credit loss provisions.

Hanmi also announced today that Hanmi and the Bank have entered into a Written
Agreement (the "Written Agreement") with the Federal Reserve Bank of San
Francisco (the "FRB"), effective as of November 2, 2009. In addition, the board
of directors of the Bank has consented to the issuance of a Final Order (the
"Final Order") by the California Department of Financial Institutions (the
"DFI"), effective as of November 2, 2009. The Written Agreement and the Final
Order provide for certain actions to be taken in cooperation with the regulatory
authorities and are intended to address various matters including issues related
to capital, liquidity and asset quality.

Jay S. Yoo, President and Chief Executive Officer, commented, "In the continuing
weakness of the credit markets, the third-quarter provision for loan losses was
again a record high, leading to disappointing operating results. However, we
have continued our business strategies in the third quarter and achieved
meaningful improvements in our core banking foundation. The balance sheet
deleveraging strategy changed our liability profile to core-deposit based and
substantially expanded our net interest margin. Various asset quality management
programs, as well as higher loan charge-offs and transfers to other real estate
owned, at last reduced delinquent loans and we also took a step forward in our
capital raising efforts by receiving a $6.95 million capital infusion from
Leading Investment & Securities Co. as previously announced.We are currently in
active negotiations with certain Korean institutional investors relating to a
larger capital infusion sufficient for Hanmi to weather this credit
environment."

Regulatory Agreements

The Final Order and Written Agreement require the Bank to prepare and submit
written plans to the DFI and the FRB that address the following items: (i)
strengthening board oversight of the management and operation of the Bank; (ii)
strengthening credit risk management practices; (iii) improving credit
administration policies and procedures; (iv) improving the Bank`s position with
respect to problem assets; (v) improving the capital position of the Bank and,
with respect to the Written Agreement, of Hanmi; (vi) maintaining adequate
reserves for loan and lease losses; (vii) improving the Bank`s earnings through
a strategic plan and a budget for 2010; (viii) improving the Bank`s liquidity
position and funds management practices; and (ix) contingency funding. In
addition, the Order and the Agreement place restrictions on the Bank`s lending
to borrowers who have adversely classified loans with the Bank and require the
Bank to charge off or collect certain problem loans. The Final Order and Written
Agreement also require the Bank to review and revise its allowance for loan and
lease losses consistent with relevant supervisory guidance. The Bank is also
prohibited from paying dividends, incurring, increasing or guaranteeing any
debt, or making certain changes to its business without prior approval from the
DFI, and the Bank and Hanmi must obtain prior approval from the FRB prior to
declaring and paying dividends.

Under the Final Order, the Bank is also required to increase its capital and
maintain certain regulatory capital ratios prior to certain dates specified
therein. By July 31, 2010, the Bank will be required to increase its contributed
equity capital by not less than an additional $100 million. The Bank will be
required to maintain a ratio of tangible shareholders` equity to total tangible
assets as follows:

Date Ratio of Tangible Shareholders`
Equity to Total Tangible Assets

By December 31, 2009 Not Less Than 7.0 Percent

By July 31, 2010 Not Less Than 9.0 Percent

From December 31, 2010 and Not Less Than 9.5 Percent
Until the Order is Terminated

If the Bank is not able to maintain the capital ratios identified in the Final
Order, it must notify the DFI, and Hanmi and the Bank are required to notify the
FRB if their respective capital ratios fall below those set forth in the capital
plan to be submitted to the FRB.

Results of Operations

The net interest income before provision for credit losses increased by $3.4
million, or 14.6 percent, to $26.5 million in the third quarter of 2009 compared
to $23.1 million in the prior quarter. Such increase in net interest income
reflects the effects of our core deposit campaign that was launched in the prior
quarter. Most of our high-cost six-month time deposits that were offered from
December 2008 through March 2009 and matured in the third quarter of 2009 have
been rolled over into lower-cost deposits and the average cost of
interest-bearing deposits decreased by 67 basis points to 2.70 percent from 3.37
percent in the second quarter of 2009. On the other hand, our stringent lending
policy allowed us to increase our loan pricing and to improve the average yield
on the loan portfolio to 5.50 percent in the third quarter of 2009 compared to
5.46 percent in the prior quarter. The combined result was the increase of net
interest margin by 52 basis points to 3.00 percent in the third quarter compared
to 2.48 percent in the second quarter.

The provision for credit losses in the third quarter of 2009 increased by $25.6
million to $49.5 million compared to $23.9 million in the prior quarter, due
mainly to the $16.4 million additional provision provided to the impaired loans
that was part of our continuing efforts to address the further deteriorating
commercial real estate market. For the first nine months of 2009, the provision
for credit losses more than doubled to $119.4 million compared to $50.2 million
for the prior year`s same period, reflecting our effort to prepare for the
uncertain credit risk in this weak credit market.

Total non-interest income in the third quarter of 2009 was $8.2 million compared
to $6.7 million in the prior quarter and $5.3 million in the third quarter of
2008. The sequential increase in non-interest income reflects an $864,000 net
gain on sales of SBA loans. The second quarter income was also reduced by an
impairment loss of $909,000 on a low income housing investment

Total non-interest expense in the third quarter of 2009 was $23.7 million
compared to $24.7 million in the second quarter, a decrease of $1.0 million, or
4.1 percent, and an increase of $1.5 million, or 6.5 percent, compared to $22.2
million in the third quarter of 2008. The decrease from the second quarter of
2009 was mainly caused by the reduction of deposit insurance premiums and
regulatory assessments. Increased expenses in the second quarter reflect the
one-time FDIC special assessment fees of $1.8 million. Reflecting a
second-quarter out-of-court settlement fee of $850,000, third-quarter
loan-related expenses declined by 84.2 percent to $192,000 from $1.2 million in
the second quarter. Salaries and employee benefits, the biggest single
contributor to total non-interest expense, was essentially unchanged at $8.6
million compared to $8.5 million in the prior quarter. We will continue to hold
down all operating costs for the remainder of 2009; however, further cost
control may be offset by regulatory-related expenses such as professional fees
and potential FDIC assessments. We also expect that expenses to manage our asset
quality in this stressed credit environment continue to be significant. In the
third quarter, expenses in relation with other real estate owned ("OREO"), such
as valuation expenses and maintenance costs, more than doubled to $3.4 million
from the prior quarter`s $1.5 million.

Due to increased net interest income before provision for credit losses and
increased non-interest income, along with decreased non-interest expense, the
efficiency ratio (non-interest expense divided by the sum of net interest income
before provision for credit losses and non-interest income) sequentially
improved to 68.2 percent compared to 82.9 percent in the second quarter of 2009.

Balance Sheet and Asset Quality

Total assets at September 30, 2009 decreased by $418.3 million, or 10.8 percent,
to $3.46 billion from $3.88 billion at December 31, 2008, and decreased by
$308.5 million, or 8.2 percent, from $3.77 billion at September 30, 2008,
reflecting the Bank`s ongoing strategy to deleverage the balance sheet.

With our ongoing stringent lending policy to carefully evaluate all maturing
loans and selectively renew our loans based on quality, gross loans, net of
deferred loan fees, decreased by $384.6 million, or 11.4 percent, to $2.98
billion as of September 30, 2009, compared to $3.36 billion at December 31,
2008, and decreased by $367.5 million, or 11.0 percent, compared to $3.35
billion at September 30, 2008.

The success of our core deposit campaign together with our deleveraging strategy
substantially changed our liability profile in the third quarter by increasing
our core deposits and decreasing the brokered deposits and borrowings.

Our total deposits decreased by $78.2 million, or 2.5 percent, to $2.99 billion
at September 30, 2009, compared to $3.07 billion at December 31, 2008, and
increased by $192.5 million, or 6.9 percent, compared to $2.80 billion at
September 30, 2008. Such decrease was carefully designed under our deleveraging
strategy which allows some run off of volatile and expensive time deposits. For
the nine months ended September 30, 2009, time deposits decreased by $472.1
million and our non-time deposits increased by $393.9 million. For the same nine
month period, FHLB advances also decreased by $261.4 million, or 61.9 percent,
to $160.8 million at September 30, 2009, compared to $422.2 million at December
31, 2008, At September 30, 2009, brokered deposits, excluding CDARS, were $365.7
million, a decrease of $508.4 million, or 58.2 percent, compared to $874.1
million at December 31, 2008.

Third quarter charge-offs, net of recoveries, were $29.9 million compared to
$23.6 million in the prior quarter and $11.8 million in the third quarter of
2008. Out of the third quarter charge-offs, $22.8 million was made from
unsecured commercial and industrial ("C&I") loans, including one large loan in
the amount of $7.0 million to an international trading company. Also included
were some commercial real estate and business property loans due to decreases in
hard collateral values, resulted in partial charge-offs of $4.0 million, with
the remaining balance of $3.5 million consisting of consumer and SBA loans.

Delinquent loans were $151.0 million (5.07 percent of total gross loans) at
September 30, 2009, compared to $178.7 million (5.66 percent of total gross
loans) at June 30, 2009, $164.4 million (4.95 percent of total gross loans) at
March 31, 2009, $128.5 million (3.82 percent of total gross loans) at December
31, 2008, and $102.9 million (3.08 percent of total gross loans) at September
30, 2008. The decrease in delinquencies from the prior quarter is attributable
to diligent collection efforts, which involve proactive negotiations with
borrowers in financial difficulty, often leading to loan modifications or
charge-offs.

Non-performing loans ("NPL") at September 30, 2009 were $174.4 million (5.85
percent of total gross loans), compared to $167.3 million (5.3 percent of total
gross loans) at June 30, 2009, $156.3 million (4.71 percent of total gross
loans) at March 31, 2009, $121.9 million (3.62 percent of total gross loans) at
December 31, 2008, and $111.9 million (3.34 percent of total gross loans) at
September 30, 2008. The breakdown in third quarter 2009 NPLs was as follows:
10.4 percent were construction loans, 47.6 percent were C&I loans including
owner/user business property loans, 30.3 percent were commercial real estate
("CRE") loans, 9.5 percent were SBA loans, and 2.2 percent were consumer loans.

As of September 30, 2009, total non-performing assets of $201.6 million included
OREO of $27.1 million compared to total non-performing assets of $201.3 million
with OREO of $34.0 million at June 30, 2009, $157.5 million with OREO of $1.2
million at March 31, 2009, and $122.7 million with OREO of $823,000 at December
31, 2008. At September 30, 2008, total non-performing assets were $114.9
million, which included OREO of $3.0 million. At September 30, 2009, OREO was
$6.9 million lower, when compared to the prior quarter, mainly due to the sale
of a golf course north of San Diego.

At September 30, 2009, the allowance for loan losses was $124.8 million, or 4.19
percent of total gross loans (71.53 percent of total non-performing loans),
compared to $71.0 million, or 2.11 percent of total gross loans (58.23 percent
of total non-performing loans), at December 31, 2008, and $63.9 million, or 1.91
percent of total gross loans (57.16 percent of total non-performing loans), at
September 30, 2008.

Capital Adequacy

On September 4, 2009, Hanmi received an investment of $6.95 million from Leading
Investment & Securities Co. Ltd. IWL Partners LLC, an affiliate of Leading, is
additionally preparing a separate definitive agreement that would result in a
larger equity capital infusion. If completed as expected, the Korean investment
will augment Hanmi`s capital reserves and, in conjunction with our program to
deleverage the balance sheet, will enhance our ability to weather the current
recession and emerge well-positioned to take advantage of opportunities as the
economy recovers.

At September 30, 2009, the Bank`s Tier 1 Leverage, Tier 1 Risk-Based Capital,
and Total Risk-Based Capital ratios were 7.05 percent, 8.40 percent and 9.69
percent, respectively, compared to 8.85 percent, 9.44 percent, and 10.71
percent, respectively, at December 31, 2008. The Bank`s ratio of tangible
shareholders` equity to total tangible assets was 7.57 percent at September 30,
2009.

Deferred Tax Assets

During the third quarter of 2009, Hanmi established a valuation allowance of
$44.9 million against its existing net deferred tax assets. The Company`s
primary deferred tax assets relate to its allowance for loan losses and
impairment charges. Under generally accepted accounting principles, a valuation
allowance must be recognized if it is "more likely than not" that such deferred
tax assets will not be realized. Appropriate consideration is given to all
available evidence (both positive and negative) related to the realization of
the deferred tax assets on a quarterly basis.

In conducting its regular quarterly evaluation, Hanmi made a determination to
establish a valuation allowance at September 30, 2009 based primarily upon the
existence of a three-year cumulative loss derived by combining the pre-tax
income (loss) reported during the two most recent annual periods with
management`s current projected results for the year ending 2009. This three-year
cumulative loss position is primarily attributable to significant provisions for
credit losses incurred during 2009. Although the Company`s current financial
forecasts indicate that sufficient taxable income will be generated in the
future to ultimately realize the existing deferred tax benefits, those forecasts
were not considered to constitute sufficient positive evidence to overcome the
observable negative evidence associated with the three-year cumulative loss
position determined at September 30, 2009. Although the creation of the
valuation allowance will increase tax expense for the quarter ended September
30, 2009 and similarly reduce tangible book value, it will not have an effect on
Hanmi`s cash flows. The remaining net deferred tax assets of $2.5 million will
be reversed by NOL carryover during the 4th quarter of 2009.

Forward-Looking Statements

This release contains forward-looking statements, which are included in
accordance with the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. In some cases, you can identify forward-looking
statements by terminology such as "may," "will," "should," "could," "expects,"
"plans," "intends," "anticipates," "believes," "estimates," "predicts,"
"potential," or "continue," or the negative of such terms and other comparable
terminology. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future results,
levels of activity, performance or achievements. These statements involve known
and unknown risks, uncertainties and other factors that may cause our actual
results, levels of activity, performance or achievements to differ from those
expressed or implied by the forward-looking statements. These factors include
the following: failure to maintain adequate levels of capital and liquidity to
support our operations; the effect of regulatory orders we have entered into and
potential future supervisory action against us or Hanmi Bank; general economic
and business conditions internationally, nationally and in those areas in which
we operate; volatility and deterioration in the credit and equity markets;
changes in consumer spending, borrowing and savings habits; availability of
capital from private and government sources; the ability of Leading to complete
the transactions contemplated by the Securities Purchase Agreement; demographic
changes; competition for loans and deposits and failure to attract or retain
loans and deposits; fluctuations in interest rates and a decline in the level of
our interest rate spread; risks of natural disasters related to our real estate
portfolio; risks associated with Small Business Administration ("SBA") loans;
failure to attract or retain key employees; changes in governmental regulation,
including, but not limited to, any increase in FDIC insurance premiums; ability
to receive regulatory approval for Hanmi Bank to declare dividends to Hanmi
Financial; adequacy of our allowance for loan losses, credit quality and the
effect of credit quality on our provision for credit losses and allowance for
loan losses; changes in the financial performance and/or condition of our
borrowers and the ability of our borrowers to perform under the terms of their
loans and other terms of credit agreements; our ability to successfully
integrate acquisitions we may make; our ability to control expenses; and changes
in securities markets. In addition, we set forth certain risks in our reports
filed with the Securities and Exchange Commission, including our Annual Report
on Form 10-K for the fiscal year ended December 31, 2008 and current and
periodic reports filed with the Securities and Exchange Commission thereafter,
which could cause actual results to differ from those projected. You should
understand that it is not possible to predict or identify all such risks.
Consequently, you should not consider such disclosures to be a complete
discussion of all potential risks or uncertainties. We undertake no obligation
to update such forward-looking statements except as required by law.

About Hanmi Financial Corporation

Headquartered in Los Angeles, Hanmi Bank, a wholly owned subsidiary of Hanmi
Financial Corporation, provides services to the multi-ethnic communities of
California, with 27 full-service offices in Los Angeles, Orange, San Bernardino,
San Francisco, Santa Clara and San Diego counties, and two loan production
offices in Virginia and Washington State. Hanmi Bank specializes in commercial,
SBA and trade finance lending, and is a recognized community leader. Hanmi
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 at www.hanmi.com.

HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)

September 30, December 31, % September 30, %
2009 2008 Change 2008 Change
ASSETS

Cash and Due from Banks $ 57,727 $ 83,933 (31.2 )% $ 81,640 (29.3 )%
Interest-Bearing Deposits in Other Banks 155,607 2,014 7,626.3 % 755 20,510.2 %
Federal Funds Sold and Securities Purchased Under Resale Agreements - 130,000 (100.0 )% 5,000 (100.0 )%

Cash and Cash Equivalents 213,334 215,947 (1.2 )% 87,395 144.1 %

Investment Securities 205,901 197,117 4.5 % 221,714 (7.1 )%

Loans:
Gross Loans, Net of Deferred Loan Fees 2,977,504 3,362,111 (11.4 )% 3,345,049 (11.0 )%
Allowance for Loan Losses (124,768 ) (70,986 ) 75.8 % (63,948 ) 95.1 %

Loans Receivable, Net 2,852,736 3,291,125 (13.3 )% 3,281,101 (13.1 )%

Due from Customers on Acceptances 1,859 4,295 (56.7 )% 7,382 (74.8 )%
Premises and Equipment, Net 19,302 20,279 (4.8 )% 20,703 (6.8 )%
Accrued Interest Receivable 11,389 12,347 (7.8 )% 13,801 (17.5 )%
Other Real Estate Owned, Net 27,140 823 3,197.7 % 2,988 808.3 %
Deferred Income Taxes, Net 2,464 29,456 (91.6 )% 18,682 (86.8 )%
Servicing Assets 3,957 3,791 4.4 % 4,018 (1.5 )%
Other Intangible Assets, Net 3,736 4,950 (24.5 )% 5,404 (30.9 )%
Investment in Federal Home Loan Bank Stock, at Cost 30,697 30,697 - 30,424 0.9 %
Investment in Federal Reserve Bank Stock, at Cost 10,053 10,228 (1.7 )% 11,733 (14.3 )%
Bank-Owned Life Insurance 26,171 25,476 2.7 % 25,239 3.7 %
Income Taxes Receivable 34,908 11,712 198.1 % 17,785 96.3 %
Other Assets 13,843 17,573 (21.2 )% 17,622 (21.4 )%

TOTAL ASSETS $ 3,457,490 $ 3,875,816 (10.8 )% $ 3,765,991 (8.2 )%

LIABILITIES AND STOCKHOLDERS` EQUITY

Liabilities:
Deposits:
Noninterest-Bearing $ 561,548 $ 536,944 4.6 % $ 634,593 (11.5 )%
Interest-Bearing 2,430,312 2,533,136 (4.1 )% 2,164,784 12.3 %

Total Deposits 2,991,860 3,070,080 (2.5 )% 2,799,377 6.9 %

Accrued Interest Payable 19,730 18,539 6.4 % 11,344 73.9 %
Bank Acceptances Outstanding 1,859 4,295 (56.7 )% 7,382 (74.8 )%
Federal Home Loan Bank Advances 160,828 422,196 (61.9 )% 583,315 (72.4 )%
Other Borrowings 1,496 787 90.1 % 1,657 (9.7 )%
Junior Subordinated Debentures 82,406 82,406 - 82,406 -
Accrued Expenses and Other Liabilities 12,191 13,598 (10.3 )% 13,314 (8.4 )%

Total Liabilities 3,270,370 3,611,901 (9.5 )% 3,498,795 (6.5 )%

Stockholders` Equity 187,120 263,915 (29.1 )% 267,196 (30.0 )%

TOTAL LIABILITIES AND STOCKHOLDERS` EQUITY $ 3,457,490 $ 3,875,816 (10.8 )% $ 3,765,991 (8.2 )%

HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands, Except Per Share Data)

Three Months Ended Nine Months Ended
Sept. 30, June 30, % Sept. 30, % Sept. 30, Sept. 30, %
2009 2009 Change 2008 Change 2009 2008 Change
INTEREST AND DIVIDEND INCOME:
Interest and Fees on Loans $ 42,705 $ 44,718 (4.5 )% $ 56,134 (23.9 )% $ 132,508 $ 172,637 (23.2 )%
Taxable Interest on Investment Securities 1,541 1,370 12.5 % 2,049 (24.8 )% 4,261 7,743 (45.0 )%
Tax-Exempt Interest on Investment Securities 607 621 (2.3 )% 650 (6.6 )% 1,871 2,071 (9.7 )%
Interest on Term Federal Funds Sold 293 695 (57.8 )% - - 1,688 - -
Dividends on Federal Reserve Bank Stock 150 153 (2.0 )% 176 (14.8 )% 456 528 (13.6 )%
Interest on Federal Funds Sold and Securities Purchased Under Resale Agreements 67 112 (40.2 )% 23 191.3 % 261 137 90.5 %
Interest on Interest-Bearing Deposits in Other Banks 68 11 518.2 % 4 1,600.0 % 81 5 1,520.0 %
Dividends on Federal Home Loan Bank Stock 64 - - 405 (84.2 )% 64 953 (93.3 )%
Total Interest and Dividend Income 45,495 47,680 (4.6 )% 59,441 (23.5 )% 141,190 184,074 (23.3 )%

INTEREST EXPENSE:
Interest on Deposits 17,365 22,686 (23.5 )% 19,365 (10.3 )% 62,836 64,699 (2.9 )%
Interest on Federal Home Loan Bank Advances 865 1,010 (14.4 )% 3,324 (74.0 )% 2,987 11,406 (73.8 )%
Interest on Junior Subordinated Debentures 747 846 (11.7 )% 1,150 (35.0 )% 2,581 3,763 (31.4 )%
Interest on Other Borrowings - 2 (100.0 )% 5 (100.0 )% 2 344 (99.4 )%
Total Interest Expense 18,977 24,544 (22.7 )% 23,844 (20.4 )% 68,406 80,212 (14.7 )%

NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES 26,518 23,136 14.6 % 35,597 (25.5 )% 72,784 103,862 (29.9 )%
- - -
Provision for Credit Losses 49,500 23,934 106.8 % 13,176 275.7 % 119,387 50,226 137.7 %

NET INTEREST INCOME (LOSS) AFTER PROVISION FOR CREDIT LOSSES (22,982 ) (798 ) 2,779.9 % 22,421 (202.5 )% (46,603 ) 53,636 (186.9 )%

NON-INTEREST INCOME:
Service Charges on Deposit Accounts 4,275 4,442 (3.8 )% 4,648 (8.0 )% 13,032 13,904 (6.3 )%
Insurance Commissions 1,063 1,185 (10.3 )% 1,194 (11.0 )% 3,430 3,893 (11.9 )%
Remittance Fees 511 545 (6.2 )% 499 2.4 % 1,579 1,543 2.3 %
Trade Finance Fees 512 499 2.6 % 784 (34.7 )% 1,517 2,474 (38.7 )%
Other Service Charges and Fees 489 467 4.7 % 433 12.9 % 1,439 1,852 (22.3 )%
Net Gain on Sales of Loans 864 - - - - 866 765 13.2 %
Bank-Owned Life Insurance Income 234 227 3.1 % 241 (2.9 )% 695 715 (2.8 )%
Gain on Sales of Investment Securities - 1 (100.0 )% - - 1,277 618 106.6 %
Loss on Sales of Investment Securities - - - (483 ) (100.0 )% (109 ) (483 ) (77.4 )%
Other-Than-Temporary Impairment Loss on Investment Securities - - - (2,410 ) (100.0 )% - (2,410 ) (100.0 )%
Other Operating Income (Loss) 265 (695 ) (138.1 )% 422 (37.2 )% (462 ) 1,874 (124.7 )%
Total Non-Interest Income 8,213 6,671 23.1 % 5,328 54.1 % 23,264 24,745 (6.0 )%

NON-INTEREST EXPENSE:
Salaries and Employee Benefits 8,648 8,508 1.6 % 10,782 (19.8 )% 24,659 33,363 (26.1 )%
Occupancy and Equipment 2,834 2,788 1.6 % 2,786 1.7 % 8,506 8,360 1.7 %
Deposit Insurance Premiums and Regulatory Assessments 2,001 3,929 (49.1 )% 780 156.5 % 7,420 2,098 253.7 %
Other Real Estate Owned Expense 3,372 1,502 124.5 % 2 N/M 5,017 141 3,458.2 %
Data Processing 1,608 1,547 3.9 % 1,498 7.3 % 4,691 4,730 (0.8 )%
Professional Fees 1,239 890 39.2 % 647 91.5 % 2,745 2,627 4.5 %
Supplies and Communications 603 599 0.7 % 681 (11.5 )% 1,772 2,008 (11.8 )%
Advertising and Promotion 447 624 (28.4 )% 914 (51.1 )% 1,640 2,614 (37.3 )%
Loan-Related Expense 192 1,217 (84.2 )% 170 12.9 % 1,590 569 179.4 %
Amortization of Other Intangible Assets 379 406 (6.7 )% 478 (20.7 )% 1,214 1,504 (19.3 )%
Other Operating Expenses 2,366 2,686 (11.9 )% 3,497 (32.3 )% 7,383 7,859 (6.1 )%
Impairment Loss on Goodwill - - - - - - 107,393 (100.0 )%
Total Non-Interest Expense 23,689 24,696 (4.1 )% 22,235 6.5 % 66,637 173,266 (61.5 )%

INCOME (LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES (38,458 ) (18,823 ) 104.3 % 5,514 (797.5 )% (89,976 ) (94,885 ) (5.2 )%
Provision (Benefit) for Income Taxes 21,207 (9,288 ) (328.3 )% 1,166 1,718.8 % (3,580 ) 3,393 (205.5 )%

NET INCOME (LOSS) $ (59,665 ) $ (9,535 ) 525.7 % $ 4,348 (1,472.2 )% $ (86,396 ) $ (98,278 ) (12.1 )%

EARNINGS (LOSS) PER SHARE:
Basic $ (1.26 ) $ (0.21 ) 500.0 % $ 0.09 (1,500.0 )% $ (1.86 ) $ (2.14 ) (13.1 )%
Diluted $ (1.26 ) $ (0.21 ) 500.0 % $ 0.09 (1,500.0 )% $ (1.86 ) $ (2.14 ) (13.1 )%

WEIGHTED-AVERAGE SHARES OUTSTANDING:
Basic 47,413,141 45,924,767 45,881,549 46,415,225 45,869,069
Diluted 47,413,141 45,924,767 45,933,043 46,415,225 45,869,069

SHARES OUTSTANDING AT PERIOD-END 51,201,390 46,130,967 45,905,549 51,201,390 45,905,549

HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA(UNAUDITED)
(Dollars in Thousands)

Three Months Ended Nine Months Ended
Sept. 30, June 30, % Sept. 30, % Sept. 30, Sept. 30, %
2009 2009 Change 2008 Change 2009 2008 Change

AVERAGE BALANCES:
Average Gross Loans, Net of Deferred Loan Fees $ 3,078,104 $ 3,282,152 (6.2 )% $ 3,341,250 (7.9 )% $ 3,235,455 $ 3,320,559 (2.6 )%
Average Investment Securities 209,021 179,129 16.7 % 244,027 (14.3 )% 190,243 294,130 (35.3 )%
Average Interest-Earning Assets 3,552,698 3,796,039 (6.4 )% 3,630,755 (2.1 )% 3,718,837 3,659,255 1.6 %
Average Total Assets 3,672,253 3,897,158 (5.8 )% 3,789,614 (3.1 )% 3,842,266 3,892,197 (1.3 )%
Average Deposits 3,100,419 3,223,309 (3.8 )% 2,895,746 7.1 % 3,174,880 2,924,416 8.6 %
Average Borrowings 297,455 386,477 (23.0 )% 590,401 (49.6 )% 374,139 588,267 (36.4 )%
Average Interest-Bearing Liabilities 2,844,821 3,083,774 (7.7 )% 2,835,917 0.3 % 3,013,651 2,861,288 5.3 %
Average Stockholders` Equity 232,136 240,207 (3.4 )% 267,433 (13.2 )% 249,742 340,894 (26.7 )%
Average Tangible Equity 228,169 235,850 (3.3 )% 261,751 (12.8 )% 245,377 263,870 (7.0 )%

PERFORMANCE RATIOS (Annualized):
Return on Average Assets (6.45 )% (0.98 )% 0.46 % (3.01 )% (3.37 )%
Return on Average Stockholders` Equity (101.97 )% (15.92 )% 6.47 % (46.25 )% (38.51 )%
Return on Average Tangible Equity (103.75 )% (16.22 )% 6.61 % (47.08 )% (49.75 )%
Efficiency Ratio 68.21 % 82.85 % 54.33 % 69.38 % 134.73 %
Net Interest Spread (1) 2.47 % 1.88 % 3.21 % 2.08 % 3.02 %
Net Interest Margin (1) 3.00 % 2.48 % 3.94 % 2.65 % 3.83 %

ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $ 105,268 $ 104,943 0.3 % $ 62,977 67.2 % $ 70,986 $ 43,611 62.8 %
Provision Charged to Operating Expense 49,375 23,922 106.4 % 12,802 285.7 % 119,067 47,685 149.7 %
Charge-Offs, Net of Recoveries (29,875 ) (23,597 ) 26.6 % (11,831 ) 152.5 % (65,285 ) (27,348 ) 138.7 %
Balance at End of Period $ 124,768 $ 105,268 18.5 % $ 63,948 95.1 % $ 124,768 $ 63,948 95.1 %

Allowance for Loan Losses to Total Gross Loans 4.19 % 3.33 % 1.91 % 4.19 % 1.91 %
Allowance for Loan Losses to Total Non-Performing Loans 71.53 % 62.92 % 57.16 % 71.53 % 57.16 %

ALLOWANCE FOR OFF-BALANCE SHEET ITEMS:
Balance at Beginning of Period $ 4,291 $ 4,279 0.3 % $ 3,932 9.1 % $ 4,096 $ 1,765 132.1 %
Provision Charged to Operating Expense 125 12 941.7 % 374 151.8 % 320 2,541 (87.4 )%
Balance at End of Period $ 4,416 $ 4,291 2.9 % $ 4,306 2.6 % $ 4,416 $ 4,306 2.6 %

(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.

HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED) (Continued)
(Dollars in Thousands)

Sept. 30, Dec. 31, % Sept. 30, %
2009 2008 Change 2008 Change
NON-PERFORMING ASSETS:
Non-Accrual Loans $ 174,363 $ 120,823 44.3 % $ 111,335 56.6 %
Loans 90 Days or More Past Due and Still Accruing 64 1,075 (94.0 )% 535 (88.0 )%
Total Non-Performing Loans 174,427 121,898 43.1 % 111,870 55.9 %
Other Real Estate Owned, Net 27,140 823 3,197.7 % 2,988 808.3 %
Total Non-Performing Assets $ 201,567 $ 122,721 64.2 % $ 114,858 75.5 %

Total Non-Performing Loans/Total Gross Loans 5.85 % 3.62 % 3.34 %
Total Non-Performing Assets/Total Assets 5.83 % 3.17 % 3.05 %
Total Non-Performing Assets/Allowance for Loan Losses 161.6 % 172.9 % 179.6 %

DELINQUENT LOANS $ 151,047 $ 128,469 17.6 % $ 102,917 46.8 %

Delinquent Loans/Total Gross Loans 5.07 % 3.82 % 3.08 %

LOAN PORTFOLIO:
Real Estate Loans $ 1,086,735 $ 1,180,114 (7.9 )% $ 1,166,436 (6.8 )%
Commercial and Industrial Loans 1,824,042 2,099,732 (13.1 )% 2,096,222 (13.0 )%
Consumer Loans 68,537 83,525 (17.9 )% 84,031 (18.4 )%
Total Gross Loans 2,979,314 3,363,371 (11.4 )% 3,346,689 (11.0 )%
Deferred Loan Fees (1,810 ) (1,260 ) 43.7 % (1,640 ) 10.4 %
Gross Loans, Net of Deferred Loan Fees 2,977,504 3,362,111 (11.4 )% 3,345,049 (11.0 )%
Allowance for Loan Losses (124,768 ) (70,986 ) 75.8 % (63,948 ) 95.1 %
Loans Receivable, Net $ 2,852,736 $ 3,291,125 (13.3 )% $ 3,281,101 (13.1 )%

LOAN MIX:
Real Estate Loans 36.5 % 35.1 % 34.9 %
Commercial and Industrial Loans 61.2 % 62.4 % 62.6 %
Consumer Loans 2.3 % 2.5 % 2.5 %
Total Gross Loans 100.0 % 100.0 % 100.0 %

DEPOSIT PORTFOLIO:
Demand - Noninterest-Bearing $ 561,548 $ 536,944 4.6 % $ 634,593 (11.5 )%
Savings 98,019 81,869 19.7 % 86,157 13.8 %
Money Market Checking and NOW Accounts 723,585 370,401 95.4 % 597,065 21.2 %
Time Deposits of $100,000 or More 845,318 849,800 (0.5 )% 863,034 (2.1 )%
Other Time Deposits 763,390 1,231,066 (38.0 )% 618,528 23.4 %
Total Deposits $ 2,991,860 $ 3,070,080 (2.5 )% $ 2,799,377 6.9 %

DEPOSIT MIX:
Demand - Noninterest-Bearing 18.8 % 17.5 % 22.7 %
Savings 3.3 % 2.7 % 3.1 %
Money Market Checking and NOW Accounts 24.2 % 12.1 % 21.3 %
Time Deposits of $100,000 or More 28.3 % 27.7 % 30.8 %
Other Time Deposits 25.4 % 40.0 % 22.1 %
Total Deposits 100.0 % 100.0 % 100.0 %

CAPITAL RATIOS (Bank Only):
Total Risk-Based 9.69 % 10.71 % 10.84 %
Tier 1 Risk-Based 8.40 % 9.44 % 9.57 %
Tier 1 Leverage 7.05 % 8.85 % 8.94 %

HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID(UNAUDITED)
(Dollars in Thousands)

Three Months Ended Nine Months Ended
September 30, 2009 June 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008
Average Interest Average Average Interest Average Average Interest Average Average Interest Average Average Interest Average
Balance Income/ Yield/ Balance Income/ Yield/ Balance Income/ Yield/ Balance Income/ Yield/ Balance Income/ Yield/
Expense Rate Expense Rate Expense Rate Expense Rate Expense Rate
INTEREST-EARNING ASSETS

Loans:
Real Estate Loans:
Commercial Property $ 887,028 $ 12,051 5.39 % $ 914,802 $ 13,041 5.72 % $ 867,684 $ 14,604 6.70 % $ 905,386 $ 38,029 5.62 % $ 821,097 $ 42,894 6.98 %
Construction 138,340 1,464 4.20 % 178,456 1,594 3.58 % 199,969 2,539 5.05 % 165,455 4,605 3.72 % 208,519 8,081 5.18 %
Residential Property 83,387 1,050 5.00 % 86,913 1,119 5.16 % 90,739 1,209 5.30 % 86,904 3,332 5.13 % 90,069 3,584 5.32 %
Total Real Estate Loans 1,108,755 14,565 5.21 % 1,180,171 15,754 5.35 % 1,158,392 18,352 6.30 % 1,157,745 45,966 5.31 % 1,119,685 54,559 6.51 %
Commercial and Industrial Loans 1,897,321 26,863 5.62 % 2,025,414 27,774 5.50 % 2,099,708 36,128 6.85 % 2,001,546 82,874 5.54 % 2,114,974 112,416 7.10 %
Consumer Loans 73,670 1,084 5.84 % 77,989 1,108 5.70 % 85,021 1,495 7.00 % 77,606 3,345 5.76 % 87,920 4,789 7.28 %
Total Gross Loans 3,079,746 42,512 5.48 % 3,283,574 44,636 5.45 % 3,343,121 55,975 6.66 % 3,236,897 132,185 5.46 % 3,322,579 171,764 6.91 %
Prepayment Penalty Income - 193 - - 82 - - 159 - - 323 - - 873 -
Unearned Income on Loans, Net of Costs (1,642 ) - - (1,422 ) - - (1,871 ) - - (1,442 ) - - (2,020 ) - -
Gross Loans, Net 3,078,104 42,705 5.50 % 3,282,152 44,718 5.46 % 3,341,250 56,134 6.68 % 3,235,455 132,508 5.48 % 3,320,559 172,637 6.94 %

Investment Securities:
Municipal Bonds (1) 58,179 933 6.41 % 59,222 956 6.46 % 60,979 1,000 6.56 % 58,760 2,878 6.53 % 65,329 3,186 6.50 %
U.S. Government Agency Securities 37,969 431 4.54 % 13,177 144 4.37 % 46,777 483 4.13 % 20,345 671 4.40 % 80,120 2,612 4.35 %
Mortgage-Backed Securities 82,429 807 3.92 % 74,939 880 4.70 % 83,460 994 4.76 % 77,720 2,582 4.43 % 90,652 3,246 4.77 %
Collateralized Mortgage Obligations 17,066 173 4.05 % 20,713 215 4.15 % 41,266 441 4.27 % 23,742 736 4.13 % 45,853 1,462 4.25 %
Corporate Bonds 401 - 0.00 % 233 22 37.77 % 7,751 89 4.59 % 265 - 0.00 % 8,344 287 4.59 %
Other Securities 12,977 130 4.01 % 10,845 109 4.02 % 3,794 42 4.43 % 9,411 272 3.85 % 3,832 136 4.73 %
Total Investment Securities (1) 209,021 2,474 4.73 % 179,129 2,326 5.19 % 244,027 3,049 5.00 % 190,243 7,139 5.00 % 294,130 10,929 4.95 %

Other Interest-Earning Assets:
Equity Securities 41,741 214 2.05 % 41,532 153 1.47 % 39,929 581 5.82 % 41,667 520 1.66 % 37,160 1,481 5.31 %
Federal Funds Sold and Securities Purchased Under Resale Agreements 56,568 67 0.47 % 135,362 112 0.33 % 4,797 23 1.92 % 95,365 261 0.36 % 7,096 137 2.57 %
Term Federal Funds Sold 90,239 293 1.30 % 147,692 695 1.88 % - - - 125,249 1,688 1.80 % - - -
Interest-Earning Deposits 77,025 68 0.35 % 10,172 11 0.43 % 752 4 2.13 % 30,858 81 0.35 % 310 5 2.15 %
Total Other Interest-Earning Assets 265,573 642 0.97 % 334,758 971 1.16 % 45,478 608 5.35 % 293,139 2,550 1.16 % 44,566 1,623 4.86 %

TOTAL INTEREST-EARNING ASSETS (1) $ 3,552,698 $ 45,821 5.12 % $ 3,796,039 $ 48,015 5.07 % $ 3,630,755 $ 59,791 6.55 % $ 3,718,837 $ 142,197 5.11 % $ 3,659,255 $ 185,189 6.76 %

INTEREST-BEARING LIABILITIES

Interest-Bearing Deposits:
Savings $ 93,404 $ 585 2.48 % $ 84,588 $ 527 2.50 % $ 91,465 $ 533 2.32 % $ 86,715 $ 1,617 2.49 % $ 91,910 $ 1,587 2.31 %
Money Market Checking and NOW Accounts 629,124 2,998 1.89 % 319,319 1,426 1.79 % 693,718 5,579 3.20 % 431,646 6,278 1.94 % 656,625 15,946 3.24 %
Time Deposits of $100,000 or More 983,341 7,447 3.00 % 1,313,683 12,108 3.70 % 973,752 8,709 3.56 % 1,124,876 29,877 3.55 % 1,143,975 35,436 4.14 %
Other Time Deposits 841,497 6,335 2.99 % 979,707 8,625 3.53 % 486,581 4,544 3.72 % 996,275 25,064 3.36 % 380,511 11,730 4.12 %
Total Interest-Bearing Deposits 2,547,366 17,365 2.70 % 2,697,297 22,686 3.37 % 2,245,516 19,365 3.43 % 2,639,512 62,836 3.18 % 2,273,021 64,699 3.80 %

Borrowings:
FHLB Advances 213,583 865 1.61 % 302,220 1,010 1.34 % 506,981 3,324 2.61 % 290,142 2,987 1.38 % 492,434 11,406 3.09 %
Other Borrowings 1,466 - 0.00 % 1,851 2 0.43 % 1,014 5 1.96 % 1,591 2 0.17 % 13,427 344 3.42 %
Junior Subordinated Debentures 82,406 747 3.60 % 82,406 846 4.12 % 82,406 1,150 5.55 % 82,406 2,581 4.19 % 82,406 3,763 6.10 %
Total Borrowings 297,455 1,612 2.15 % 386,477 1,858 1.93 % 590,401 4,479 3.02 % 374,139 5,570 1.99 % 588,267 15,513 3.52 %

TOTAL INTEREST-BEARING LIABILITIES $ 2,844,821 $ 18,977 2.65 % $ 3,083,774 $ 24,544 3.19 % $ 2,835,917 $ 23,844 3.34 % $ 3,013,651 $ 68,406 3.03 % $ 2,861,288 $ 80,212 3.74 %

NET INTEREST INCOME (1) $ 26,844 $ 23,471 $ 35,947 $ 73,791 $ 104,977

NET INTEREST SPREAD (1) 2.47 % 1.88 % 3.21 % 2.08 % 3.02 %

NET INTEREST MARGIN (1) 3.00 % 2.48 % 3.94 % 2.65 % 3.79 %

(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.

Hanmi Financial Corporation
Brian E. Cho
Chief Financial Officer
(213) 368-3200
or
David Yang
Investor Relations and Corporate Planning
(213) 637-4798

Copyright Business Wire 2009