<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMSSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
X Quarterly report pursuant to section 13 or 15 (d) of the Securities
--- Exchange Act of 1934
For the quarterly period ended June 30, 2000 or
--- Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from __________ to ___________
Hanmi Financial Corporation
-------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 95-4788120
-------------------------------------------------------------------------------
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification Number)
3660 Wilshire Boulevard, Suite PH-A, Los Angeles, California 90010
-------------------------------------------------------------------------------
(Address of Principal executive offices) (Zip Code)
(213) 382-2200
-------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
Not Applicable
-------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes ( ) No ( X )
As of June 30, 2000, there were approximately 7,414,186 outstanding shares of
the issuer's Common Stock, with par value at $.001.
<PAGE>
FORM 10-Q
INDEX
HANMI FINANCIAL CORPORATION
<TABLE>
<CAPTION>
PART I FINANCIAL INFORMATION PAGE
<S> <C>
Item 1. FINANCIAL STATEMENTS
Consolidated Statements of Financial Condition -
June 30, 2000 and December 31, 1999 2
Consolidated Statements of Operations -
Three and Six Months Ended June 30, 2000 and 1999 3
Consolidated Statements of Changes in Shareholders' Equity
Six Months Ended June 30, 2000 and 1999 4
Consolidated Statements of Cash Flows -
Six Months Ended June 30, 2000 and 1999 5
Notes to Consolidated Financial Statements 6
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS 7
Item 3. QUANTITIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK 18
PART II OTHER INFORMATION
Other Information 21
Signature 21
</TABLE>
<PAGE>
Item 1. FINANCIAL STATEMENTS
HANMI FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
(AMOUNTS IN THOUSANDS) June 30, December 31,
2000 1999
(Unaudited)
<S> <C> <C>
ASSETS
Cash and due from banks $ 65,039 $ 53,476
Federal funds sold and
Securities purchased under agreement to resell 66,400 10,000
-------- --------
Cash and cash equivalents 131,439 63,476
Interest-bearing deposits in other financial institutions - 100
Federal Reserve Bank stock 1,686 1,686
Investment securities held to maturity, at amortized cost 31,454 66,224
(fair value: June 30,2000-$30,980(unaudited); December 31, 1999-$66,096)
Investment securities available for sale, at fair value 128,560 105,014
Interest only strip - at fair value 348 352
(amortized cost: June30, 2000-$326(unaudited); December 31, 1999-$330)
Loans receivable, net of allowance for loan losses of $11,122
(unaudited) and $10,624 at June 30, 2000 and December 31, 1999, repectively) 536,259 456,149
Loans held for sale, at lower of the cost or market 16,112 18,501
Customers liability on acceptances 3,071 1,829
Premises and equipment, net 9,649 8,939
Accrued interest receivable 5,591 4,961
Other real estate owned, net 274
Deferred income taxes, net 5,721 5,608
Servicing asset 1,773 1,500
Goodwill and intangible assets 2,556 2,680
Other assets 3,347 3,240
-------- --------
TOTAL 877,840 740,259
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposits :
Noninterest-bearing 225,276 193,165
Interest-bearing:
Savings 56,887 54,416
Time deposits of $100,000 or more 167,874 123,488
Other time deposits 239,691 190,699
Money market checking 98,052 93,962
-------- --------
Total deposits 787,780 655,730
Accrued interest payable 4,253 3,157
Acceptance outstanding 3,071 1,829
Securities sold under repurchase agreement - 5,892
Treasury, tax, and loan remittances 4,500 4,500
Other liabilities 2,960 1,321
-------- --------
Total liabilities 802,564 672,429
SHAREHOLDERS' EQUITY:
Common stock, with par value ar $.001; authorized, 10,000 shares;
issued and outstanding, 7,414 shares,and 6,680 shares at
June 30, 2000 and December 31,1999, respectively (Note 3) 7 6
Paid in Capital 65,137 56,206
Accumulated other comprehensive income - unrealized loss on
securities available for sale, net of taxes of ($2,114) and ($2,002) at
June 30, 2000 and December 31,1999, respectively (3,041) (3,079)
Unrealized gain (loss) on interest-only strips, net of taxes of $9
and $9 in June 30, 2000 and December 31, 1999, respectively 13 13
Retained earnings 13,160 14,684
-------- --------
Total shareholders' equity 75,276 67,830
-------- --------
TOTAL 877,840 740,259
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
HANMI FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999
<TABLE>
<CAPTION>
For Three Months Ended, For Six Months Ended,
June 30, June 30, June 30, June 30,
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) 2000 1999 2000 1999
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Interest Income:
Interest and fees on loans 13,947 9,218 26,374 17,868
Interest on investment securities and deposits
in other financial institutions 2,389 2,881 4,979 6,103
Interest on federal funds sold and securities
purchased under agreements to resell 873 392 1,192 660
------ ------ ------- -------
Total interest income 17,209 12,491 32,545 24,631
Interest Expense 6,841 4,493 12,773 8,856
------ ------ ------- -------
Net Interest Income before Provision for Loan Losses 10,368 7,998 19,772 15,775
Provision for Loan Losses 600 -- 1,000 400
------ ------ ------- -------
Net Interest Income after Provision for Loan Losses 9,768 7,998 18,772 15,375
Noninterest Income:
Service charges on deposit accounts 2,241 2,154 4,344 4,107
Gain on sale of loans 444 266 934 601
Gain on sale of securities 51 59 51 154
Loan servicing income 598 595 1,210 1,123
Other service charges and fees 141 80 289 199
Other income 29 74 141 136
------ ------ ------- -------
Total noninterest Income 3,504 3,228 6,969 6,320
Noninterest Expense:
Salaries and employee benefits 3,314 2,920 6,507 5,708
Occupancy and equipment 740 720 1,504 1,354
Data processing 544 504 1,049 1,000
Deposit insurance premiums 45 25 119 60
Professional fees 516 286 696 497
Advertising 103 89 178 135
Office supplies 288 207 410 302
Communications 90 51 296 265
Other operating 1,179 989 2,217 1,889
------ ------ ------- -------
Total noninterest Expenses 6,819 5,791 12,976 11,210
------ ------ ------- -------
Income before Income Tax Provision 6,453 5,435 12,765 10,485
Income Tax Provision 2,700 2,251 5,352 4,373
------ ------ ------- -------
Net Income 3,753 3,184 $ 7,413 $ 6,112
====== ====== ======= =======
Earning Per Share (Note 3)
Basic $ 0.51 $ 0.43 $ 1.00 $ 0.83
Diluted $ 0.51 $ 0.43 $ 1.00 $ 0.82
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
HANMI FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED June 30, 2000 AND 1999
(Unaudited)
<TABLE>
<CAPTION>
Six months ended
June 30, June 30,
(AMOUNTS IN THOUSANDS) 2000 1999
<S> <C> <C>
Common Stock
Balance, beginning of period $ 6 $ 5
Stock Options Exercised
Stock Dividends (Note 3) 1 1
--------- --------
Balance, end of period $ 7 $ 6
Paid in Capital
Balance, beginning of period $ 56,206 $ 47,034
Stock Options Exercised 271
Stock Dividends (Note 3) 8,931 8,901
--------- --------
Balance, end of period $ 65,137 $ 56,206
Retained Earnings
Balance, beginning of period $ 14,684 $ 11,582
Net Income 7,413 6,112
Stock Dividends (8,937) (8,904)
--------- --------
Balance, end of period $ 13,160 $ 8,790
Accumulated Other Comprehensive Income:
Balance, beginning of period $ (3,066) $ 352
Change in unrealized gain (loss) on securities
available for sale, net of tax 38 (2,090)
--------- --------
Balance, end of period $ (3,028) $ (1,738)
Total Shareholers' Equity $ 75,276 $ 63,264
========= ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
HANMI FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(Unaudited)
<TABLE>
<CAPTION>
For Six Months Ended,
June 30, June 30,
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) 2000 1999
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 7,413 $ 6,112
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
operating activities:
Depreciation and amortization 811 469
Provision for loan losses 1,000 400
Proceeds from OREO 481
Gain on sale of securities available for sale (51) (154)
Gain on sale of loans (934) (601)
Origination of loans held for sale (15,357) (8,464)
Proceeds from sale of loans held for sale 18,680 9,065
Change in:
Accrued interest receivable (630) (74)
Other assets (380) 557
Accrued interest payable 1,096 (353)
Other liabilities 1,639 4,064
----------- -----------
Net cash provided by (used in) operating activities 13,287 11,502
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net (increase) decrease in interest-bearing deposits 100 1,089
Proceeds from matured or called investment securities avilable for sale 8,206 -
Proceeds from matured or called investment securities held to maturity 33,978 62,001
Net increase(decrease) in loans receivable (81,110) (47,445)
Purchase of securities available for sale (31,258) (16,527)
Increase in I/O strip 4 9
Purchases of premises and equipment (1,397) (337)
Proceeds from disposition of bank equipment -- --
----------- -----------
Net cash used in investing activities (71,477) (12,215)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits 132,050 29,209
Stock dividend paid in cash for fractional shares (6) (2)
Payment made on other borrowing (5,892) --
Payment made on treasury, tax and loan remittance -- (220)
----------- -----------
Net cash provided in financing activities 126,152 28,987
----------- -----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 67,962 24,510
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 63,476 70,729
----------- -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 131,438 $ 95,239
=========== ===========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid $ 16,579 $ 24,705
Income taxes paid 1,163 2,128
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING, OPERATING
AND FINANCING ACTIVITIES -
Transfer of retained earning to common stock for stock dividend $ 1 $ 1
Transfer of retained earning to Paid in Capital for stock dividend 8,931 8,901
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Balance Sheets at June 30, 2000 and December 31, 1999
Income Statements for the three and six months ended June 30, 2000 and June 30,
1999
Statements of Stockholders' Equity for the six months ended June 30, 2000
Statements of Cash Flow for the six months ended June 30, 2000
NOTE 1. HANMI FINANCIAL CORPORATION
As of March 14, 2000, Hanmi Financial Corporation (the "Hanmi") was
incorporated as a bank holding company, which owned Hanmi Bank (the "Bank"). The
new corporate structure will permit Hanmi and the Bank greater flexibility in
terms of operations, expansion and diversification. Shortly after the
incorporation, Hanmi registered its common stock with the Securities and
Exchange Commission (the "SEC") pursuant to the terms of a Plan and Agreement of
Merger and Reorganization. The registration statement was declared effective on
May 4, 2000. At the same time, Hanmi registered its common stock with the SEC
pursuant to section 12(g) and the Security Exchange Act of 1934, as amended. The
Reorganization was consummated with the approval obtained at the shareholder's
meeting on May 31, 2000. Hanmi has not engaged in any business since its
incorporation. In the reorganization, the Bank continued its operations as
presently conducted under its management, but the Bank will be a wholly owned
subsidiary of Hanmi.
NOTE 2. BASIS OF PRESENTATION
In the opinion of management, the consolidated financial statements of
Hanmi Financial Corporation and its subsidiary (the "Company") reflect all the
material adjustments necessary for a fair presentation of the results for the
interim period ended June 30, 2000 but are not necessarily indicative of the
results which will be reported for the entire year. In the opinion of
management, the aforementioned consolidated financial statements are in
conformity with generally accepted accounting principles.
NOTES 3. DIVIDEND
On February 16, 2000, the Bank declared an 11% stock dividend payable
on April 3, 2000 to shareholders of record at the close of business on March 1,
2000. The shares and per share data have been retroactively restated to reflect
the 11% year 2000 stock dividend. On May 3, 1999, the Bank paid an 11% stock
dividend to shareholders of record on April 26, 1999. The shares and per share
data for the 1999 dividend have been retroactively restated to reflect the 11%
dividend.
NOTES 4. RECENT ACCOUNTING PRONOUNCEMENT
On December 3, 1999, the Securities and Exchange Commission issued
Staff Accounting Bulletin ("SAB" or the "Bulletin") 101, Revenue Recognition in
Financial Statements. The Bulletin provided views in applying generally accepted
accounting principles to selected revenue recognition issues. The Bulletin
further emphasized that revenue should not be recognized until it is realized or
realizable and earned. SAB 101, as amended by SAB 101A and 101B, is to be
implemented by the Company no later than the fourth fiscal quarter of fiscal
years beginning after December 15, 1999. In management's opinion, implementation
of SAB 101 will not have a material impact to the overall financial position or
results of operations of the Company.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RECENT DEVELOPMENTS
The following is management's discussion and analysis of the major
factors that influenced the Company's results of operations and financial
condition for the three and six months ended June 30, 2000.
The following table sets forth certain selected financial data concerning the
Company for the periods indicated (dollars in thousands):
<TABLE>
<CAPTION>
JUNE 30, 2000 JUNE 30, 1999
------------------------ ---------------------
<S> <C> <C>
AVERAGE BALANCES:
Average net loans $520,592 $354,870
Average investment securities 195,627 228,342
Average assets 797,630 658,993
Average deposits 713,448 589,230
Average equity 74,620 61,449
PERFORMANCE RATIOS:
Return on average asset (1) 1.86% 1.87%
Return on average common equity (1) 19.87% 20.10%
Efficiency ratio (2) 48.52% 50.59%
Net interest margin (3) 5.52% 5.41%
CAPITAL RATIOS (4)
Leverage capital ratio (5) 8.54% 9.03%
Tier 1 risk-based capital ratio 12.70% 12.61%
Total risk-based capital ratio 13.95% 13.86%
ASSET QUALITY RATIOS
Allowance for loan losses to total gross loans 1.97% 2.71%
Allowance for loan losses to non-performing
loans 272.26% 221.62%
Total non-performing assets and other real
estate owned to total assets 0.72% 1.27%
</TABLE>
----------------------------------------
(1) Calculations are based upon annualized net income.
(2) Efficiency ratio is defined as operating expenses divided by the sum of net
interest income and other non-interest income.
(3) Net interest margin is calculated by dividing annualized net interest income
by total average interest-earning assets.
(4) The required ratios for a "well-capitalized" institution are 5% leverage
capital, 6% tier 1 risk-based capital and 10% total risk-based capital.
(5) Calculations are based on average quarterly asset balances of Hanmi Bank.
7
<PAGE>
FORWARD-LOOKING INFORMATION
Certain matters discussed under this caption may constitute
forward-looking statements under Section 27A of the Securities Act and Section
21E of the Securities Exchange Act of 1934. There can be no assurance that the
results described or implied in such forward-looking statements will, in fact,
be achieved and actual results, performance, and achievements could differ
materially because the business of the Company involves inherent risks and
uncertainties. Risks and uncertainties include possible future deteriorating
economic conditions in the Company's areas of operation; interest rate risk
associated with volatile interest rates and related asset-liability matching
risk; liquidity risks; risk of significant non-earning assets, and net credit
losses that could occur, particularly in times of weak economic conditions or
times of rising interest rates; risks of available for sale securities declining
significantly in value as interest rates rise; and regulatory risks associated
with the variety of current and future regulations to which the Company is
subject. For additional information concerning these factors, see "Risk Factors"
contained in the Company's Registration Statement on Form S-4.
DIVIDENDS
On February 16, 2000, the Bank declared an 11% stock dividend payable
on April 3, 2000 to shareholders of record at the close of business on March 1,
2000. The shares and per share data have been retroactively restated to reflect
the 11% year 2000 stock dividend. On May 3, 1999, the Bank paid an 11% stock
dividend to shareholders of record on April 26, 1999. The shares and per share
data for the 1999 dividend have been retroactively restated to reflect the 11%
dividend.
RESULTS OF OPERATION
For the second quarter of 2000, the Company reported net income of $3.8
million or $0.51 per diluted share compared to $3.2 million or $0.43 per diluted
share for the same quarter of 1999, representing an increase of $.6 million or
15.58%. The increase in 2000 second quarter net income was primarily
attributable to a $2.4 million increase in net interest income before provision
for loan losses.
The annualized return on average assets was 1.86% for the second quarter of 2000
compared to a return on average assets of 1.87% for the same quarter of 1999, a
decrease of 0.01%. The annualized return on average equity was 19.87% for the
second quarter of 2000, compared to a return on average equity of 20.10% for the
same quarter in 1999, a decrease of 0.23%.
For the six months ended June 30, 2000, the Company reported net income of $ 7.4
million or $1.00 per basic and diluted common share, compared with $6.2 million
or $ .83 per basic and diluted common share for the sane period of 1999. This
represents an increase of $1.2 million or 20.05%.
NET INTEREST INCOME
The principal component of the Company's earnings is net interest
income, which is the difference between the interest and fees earned on loans
and investments and the interest paid on deposits and other borrowed funds. When
net interest income is expressed as a percentage of average interest-earning
assets, the result is the net interest margin. The net interest spread is the
yield on average interest-earning assets less the average cost of
interest-bearing deposits and borrowed funds.
8
<PAGE>
For the second quarter of 2000, net interest income before provision
for loan losses totaled $10.4 million, compare with $8.0 million for the
corresponding quarter of 1999. This represented an increase of $2.4 million or
29.63%.
For the six months ended June 30, 2000, net interest income before
provision for loan losses amounted to $19.8 million, compared with $15.8
million a year ago. This represented an increase of $4.0 million or 25.34%. The
increase of $4 million in net interest income before provision for loan losses
was substantially attributable to an increase of $ 133 million in average
interest-earning assets, from $583.2 million to $716.2 million, which
represented an increase of 22.8%.
The yield on average interest-earning assets increased to 9.09% for the
six months ended June 30, 2000, from a yield of 8.45% for the six months ended
June 30, 1999. This increase is primarily due to an increase in the Bank's loan
portfolio, which has a higher yield than investment securities, and a result of
three consecutive 25 basis point interest rate raise by the Feral Reserve Board
in the last two quarters of 1999. Approximately 73% of Company's interest
earning assets were comprised of loans at June 30, 2000, compare to 61% at June
30, 1999.
The Company's interest expense on deposits for the six months ended
June 30, 2000 increased by approximately $3.9 million or 44.23% to $12.8 million
from $8.9 million for the six months ended June 30, 1999. This increase
reflected an increase in the average volume of interest-bearing liabilities and
interest rates paid to depositors. Average interest-bearing liabilities were
$510.4 million for the six months ended June 30, 2000, which represented an
increase of $108.3 million or 26.94% from average interest-bearing liabilities
of $402.1 million for the six months ended June 30, 1999. The cost of average
interest-bearing liabilities increased to 5.01% for the six months ended June
30, 2000, compared to a cost of 4.41% for the same period of 1999. Overall
interest on deposits increased due to an increase in market rates and also due
to an increase in competition among our peer banks.
The table below presents the average yield on each category of
interest-earning assets, average rate paid on each category of interest-bearing
liabilities, and the resulting interest rate spread and net yield on
interest-earning assets for periods indicated. All average balances are daily
average balances.
<TABLE>
<CAPTION>
JUNE 30, 2000 JUNE 30, 1999
----------------------------------- ----------------------------------
INTEREST AVERAGE INTEREST AVERAGE
AVERAGE INCOME/ YIELD/ AVERAGE INCOME/ YIELD/
BALANCE EXPENSE COST BALANCE EXPENSE COST
----------- ----------- ----------- ----------- ---------- -----------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C> <C> <C> <C>
INTEREST EARNING ASSETS:
Net loans....................... $520,592 $26,374 10.13% $354,870 $17,830 10.05%
Municipal bonds................. 14,759 429 5.81% 11,661 338 5.80%
Obligation of other U.S.........
Government agencies.......... 88,733 2,813 6.34% 105,177 3,228 6.14%
Other debt securities........... 54,400 1,731 6.36% 82,608 2,537 6.14%
Federal funds sold.............. 37,610 1,192 6.34% 27,345 660 4.83%
Interest earning deposit........ 125 6 4.80% 1,551 38 4.90%
--- - ----- --
TOTAL INTEREST EARNING
ASSETS $716,219 $32,545 9.09% $583,212 $24,631 8.45%
======== ======= ======== =======
INTEREST BEARING LIABILITIES:
Money market checking........... $ 97,176 $ 1,743 3.59% $89,005 1485 3.34%
Savings......................... 53,171 992 3.73% 53,396 928 3.48%
Time certificates of deposits... 136,462 3,773 5.53% 115,686 2,932 5.07%
$100,000 or more .............
Other time certificates of 219,786 6,140 5.59% 143,972 3,511 4.88%
deposits.........................
Other borrowing............... 3,794 125 6.59% - - -
----- ---
TOTAL INTEREST BEARING
LIABILITIES $510,389 $12,773 5.01% $402,059 $8,856 4.41%
======== ======= ======== ======
Net interest income................ $19,772 $15,775
Net interest spread................ 4.08% 4.04%
Net interest margin................ 5.52% 5.41%
</TABLE>
9
<PAGE>
The following table shows changes in interest income and interest
expense and the amounts attributable to variations in interest rates and volumes
for the periods indicated. The variances attributable to simultaneous volume and
rate changes have been allocated to the change due to volume and the change due
to rate categories in proportion to the relationship of the absolute dollar
amount attributable solely to the change in volume and to the change in rate.
<TABLE>
<CAPTION>
JUNE 30, 2000 OVER JUNE 30, 1999
------------------------------------------------------------------
NET
CHANGE DUE TO INCREASE
------------------------------------------ -- --------------------
VOLUME RATE (DECREASE)
------------------- --- ------------------ -- --------------------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C>
INTEREST INCOME:
Interest and fees on net loans........... $8,326 $218 $8,544
Municipal bonds........................... 90 1 91
Obligation of other U.S.
Government agencies......................... (505) 90 (415)
Other debt securities..................... (866) 60 (806)
Federal funds sold........................ 248 284 532
Interest earning deposit.................. (32) 0 (32)
---- - ----
TOTAL INTEREST INCOME: 7,261 653 7,914
INTEREST EXPENSE
Money market checking.................. 136 122 258
Savings................................ (4) 68 64
Time certificates of deposit 527 314 841
$100,000 or more....................
Other time certificates of deposits 1,849 780 2,629
Other borrowing........................ 0 125 125
- --- ---
TOTAL INTEREST EXPENSE: 2,508 1,409 3,917
CHANGE IN NET INTEREST INCOME $4,753 $(756) $3,997
====== ====== ======
</TABLE>
10
<PAGE>
NON-INTEREST INCOME
Non-interest income includes revenues earned from sources other than
interest income. It is primarily comprised of service charges and fees on
deposit accounts, loan servicing income, including fees received from the letter
of credit operations, and gain on sale of SBA loans.
For the second quarter of 2000, non-interest income increased
approximately $213,000 or 6.47% to $3.5 million over the same period in 1999.
The increase was primarily attributable to increase in gain on sale of SBA
loans. Gain on sale of SBA loans increased $178,000 or 66.92% during the quarter
ended June 30, 2000 to $444,000, compared to $266,000 during the same period in
1999. Premiums received from the sale of SBA loans slightly increased over the
first quarter of 2000 and these increased premiums are expected to extend
through the year 2000 as interest rates continue in an upward trend. The Company
currently plans to sell a significant number of its SBA loans, which were
originated in 1999 and held due to the reduced premiums during 1999.
For the six months ended June 30, 2000, non-interest income totaled
$6.97 million compare with $6.3 million for the same period a year ago. The
increase of $586,000 was attributable to a combination of a $237,000 increase in
service charges and fees on deposit accounts plus $333,000 increase in gain on
sale of SBA loans. The fee income generated by trade financing transactions
slightly increased over the same period a year ago due to growing activity in
international trade as Asian countries recovered from the economic crisis. The
breakdown of non-interest income by category is reflected below:
<TABLE>
<CAPTION>
QUARTER ENDED QUARTER ENDED INCREASE (DECREASE)
------------------ ----------------- ----------------------------
6/30/00 6/30/99 AMOUNT PERCENT (%)
------- ------- ------ -----------
(Dollars in thousands)
<S> <C> <C> <C> <C>
NON-INTEREST INCOME
Service charges on deposits....... $2,241 $2,154 $87 4.04 %
Gain on sale of SBA loans......... 444 266 178 66.92 %
Gain on sale of Securities 51 59 (8) (13.56)%
Loan servicing income............. 598 595 3 .50 %
Other service charges and fees... 141 80 61 76.25 %
Other income..................... 29 74 (45) (60.81)%
------ ------ -----
TOTAL NON-INTEREST INCOME: $3,504 $3,228 $276 8.55 %
====== ====== ==== ======
</TABLE>
<TABLE>
<CAPTION>
FOR SIX MONTHS FOR SIX MONTHS INCREASE (DECREASE)
ENDED ENDED
------------------ ----------------- ----------------------------
6/30/00 6/30/99 AMOUNT PERCENT (%)
------- ------- ------ -----------
(Dollars in thousands)
<S> <C> <C> <C> <C>
NON-INTEREST INCOME
Service charges on deposits....... $4,344 $4,107 $237 5.77 %
Gain on sale of SBA loans......... 934 601 333 55.41 %
Gain on sale of Securities 51 154 (103) (66.88)%
Loan servicing income............. 1,210 1,123 87 7.75 %
Other service charges and fees.... 289 199 90 45.23 %
Other income...................... 141 136 5 3.68 %
------ ------ ----
TOTAL NON-INTEREST INCOME: $6,969 $6,320 $649 10.27 %
====== ====== ==== =======
</TABLE>
11
<PAGE>
NON-INTEREST EXPENSES
Non-interest expenses for the second quarter of 2000 increased
approximately $1.0 million or 17.75% to $6.8 million from $5.8 million for the
same period in 1999. The increase was attributable to a combination of internal
growth and change in organization structure. Professional fees increased by
$230,000 due to organization of Hanmi Financial Corporation reorganization of
the same and registration with the Securities and Exchange Commission.
For the six months ended June 30, 2000, non-interest expenses totaled
$13.0 million compare with $11.2 million for the same period a year ago.
Salaries and employee benefits expenses for the six months ended June 30, 2000,
increased $799,000 or 14% to $6.5 million from $5.7 million for the same period
in 1999. This increase was primarily due to expenses associated with annual
salary adjustments and addition of new employees due to the Company's recent
growth and expansion. The breakdown on non-interest expenses are reflected
below:
<TABLE>
<CAPTION>
QUARTER ENDED QUARTER ENDED INCREASE (DECREASE)
------------------ ------------------- ----------------------------
6/30/00 6/30/99 AMOUNT PERCENT (%)
------- ------- ------ -----------
(Dollars in thousands)
<S> <C> <C> <C> <C>
NON-INTEREST EXPENSE
Salaries and benefits................ $3,314 $2,920 $394 13.49 %
Occupancy and equipment.............. 740 720 20 2.78 %
Data processing...................... 544 504 40 7.94 %
Deposit insurance premiums........... 45 25 20 80.80 %
Professional fees.................... 516 286 230 80.42 %
Advertising.......................... 103 89 14 15.73 %
Office supplies...................... 288 207 81 39.13 %
Communications....................... 90 51 39 76.47 %
Others............................... 1,179 989 190 19.21 %
------ ------ ------
TOTAL NON-INTEREST EXPENSE: $6,819 $5,791 $1,028 17.75 %
====== ====== ====== -------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED SIX MONTHS ENDED INCREASE (DECREASE)
------------------ ------------------- ----------------------------
6/30/00 6/30/99 AMOUNT PERCENT (%)
------- ------- ------ -----------
(Dollars in thousands)
<S> <C> <C> <C> <C>
NON-INTEREST EXPENSE
Salaries and benefits................ $6,507 $5,708 $799 14.00 %
Occupancy and equipment.............. 1,504 1,354 150 11.08 %
Data processing...................... 1,049 1,000 49 4.90 %
Deposit insurance premiums........... 119 60 59 98.33 %
Professional fees.................... 696 497 199 40.04 %
Advertising.......................... 178 135 43 31.85 %
Office supplies...................... 410 302 108 35.76 %
Communications....................... 296 265 31 11.70 %
Others............................... 2,217 1,889 328 17.36 %
------- ------- ------
TOTAL NON-INTEREST EXPENSE: $12,976 $11,210 $1,766 15.75 %
======= ======= ====== -------
</TABLE>
12
<PAGE>
FINANCIAL CONDITION
SUMMARY OF CHANGES IN BALANCE SHEETS JUNE 30, 2000 COMPARED TO DECEMBER 31, 1999
At June 30, 2000, the Company's total assets increased $137.6 million
or 18.59% to $877.8 million from $740.2 million at December 31, 1999. Net loans,
net of unearned loan fees and reserve for loan loss and include loans held for
sale, totaled $552.4 million at June 30, 2000, which represents an increase of
$77.8 million or 16.39% from $474.6 million at December 31, 1999. Total deposits
also increased $132.1 million or 20.14% to $787.8 million at June 30, 2000 from
$655.7 million at December 31, 2000.
INVESTMENT SECURITY PORTFOLIO
The Company classified its securities as held-to-maturity or
available-for-sale under FASB 115. Those securities that the Company has the
ability and intent to hold to maturity are classified as "held-to-maturity
securities". All other securities are classified as "available-for-sale". The
Company owned no trading securities at June 30, 2000. Securities classified as
held-to-maturity are stated at cost, adjusted for amortization of premiums and
accretion of discounts, and securities as available-for-sale are stated at
market value. The securities currently held by the Company are U.S. Treasury
bond, U.S. agencies, municipal bonds, corporate bonds, and an investment in a
tax credit fund.
As of June 30, 2000, held-to-maturity securities totaled $31.5 million
and available-for-sale securities totaled $128.6 million, compared to $66.2
million and $105.0 million at December 31, 1999, respectively. Unrealized
losses, net of tax effect, on securities available-for-sale were $3.0 million
compared with unrealized losses, net of tax effect, of $3.1 million as of
year-end 1999.
<TABLE>
<CAPTION>
AT JUNE 30, 2000
(UNAUDITED)
---------------------------------------------------
AMORTIZED COST MARKET VALUE UNREALIZED LOSS
---------------- --------------- ------------------
(Dollars in thousands)
<S> <C> <C> <C>
HELD-TO-MATURITY
U.S. Treasury bond
U.S. agencies $3,000 $3,000
Municipal bonds 4,083 3,968 (115)
Mortgage backed securities 4,750 4,621 (129)
Corporate bonds 19,621 19,391 (230)
------- ------- ------
TOTAL $31,454 $30,980 $(474)
======= ======= ======
AVAILABLE-FOR-SALE
U.S. agencies $60,019 $56,348 $(3,671)
Municipal bonds 10,957 10,439 (518)
Mortgage backed securities 34,529 34,173 (356)
Corporate bonds 28,212 27,600 (612)
-------- -------- --------
TOTAL $133,717 $128,560 $(5,157)
======== ======== ========
</TABLE>
13
<PAGE>
LOAN PORTFOLIO
The Company carries all loans at face amount, less payments collected,
net of deferred loan origination fees and costs and the allowance for possible
loan losses. Interest on all loans is accrued daily on a simple interest basis.
Once a loan is placed on non-accrual status, accrual of interest is discontinued
and previously accrued interest is reversed. Loans are placed on a non-accrual
status when principal and interest on a loan is past due 90 days or more, unless
a loan is both well-secured and in process of collection.
The Company's gross loans were $565.1 million at June 30, 2000. This
represented an increase of $78.3 million or 16.09% over gross loans of $486.8
million at December 31, 1999.
Total commercial loans, comprised of domestic commercial,
trade-financing loans, and SBA commercial loans, at June 30, 2000, were
approximately $314.8 million, which represented an increase of $35.8 million or
12.84% from $279.0 million at December 31, 1999. Trade financing loans, at June
30, 2000, totaled $29.9 million, which represented an increase of $11.8 million
or 65.19% from $18.1 million at December 31, 1999. This increase is due to the
active trade financing as the Asian economy recovered from the economic crisis
in late 1998. Small Business Administration loans (SBA loans) increased $11.3
million or 34.56% during the first two quarters of 2000 to $44.0 million from
$32.7 million at December 31, 1999
The following table shows the Company's loan composition by type:
<TABLE>
<CAPTION>
JUNE 30, 2000 DECEMBER 31,1999
(UNAUDITED) (AUDITED)
----------------------------- -------------------------------
AMOUNT PERCENT AMOUNT PERCENT
--------------- ------------- --------------- ---------------
(Dollars in thousands)
<S> <C> <C> <C> <C>
LOAN PORTFOLIO COMPOSITION:
Commercial and industrial loans............. $329,783 58.27% $278,958 57.31%
Real estate loans........................... 198,901 34.49% 169,142 34.75%
Installment loans........................... 36,430 7.24% 38,682 7.94%
------ ----- ------ -----
Total loans outstanding (1)............. 565,114 486,782
Unearned income on loans, net of costs (1,621) (1,508)
Less: Allowance for Loan Losses............ (11,122) (10,624)
-------- --------
NET LOANS RECEIVABLE (1)....................... $552,371 $474,650
======== ========
</TABLE>
(1) amount included loans held for sale of $16,112 at June 30, 2000 and $ 18,501
at December 31, 1999
At June 30, 2000, the Company's nonperforming assets (nonaccrual loans,
loans 90 days or more past due and still accruing interest, restructured loans,
and other real estate owned) totaled $4.1 million. This represented an increase
of $1.1 million or 36.67% from non-performing assets of $3.0 million at December
31, 1999. As a percentage of total assets, nonperforming assets increased to
0.51% at June 30, 2000, from 0.46 % at December 31, 1999. The following table
shows the composition of the Company's nonperforming assets as of the dates
indicated.
14
<PAGE>
<TABLE>
<CAPTION>
JUNE 30, 2000 DECEMBER 31, 1999
(UNAUDITED) (AUDITED)
------------------- -- ----------------------
(DOLLARS IN THOUSANDS)
<S> <C> <C>
Nonaccrual loans..................................... $3,705 $2,953
Loan past due 90 days or more, still accruing........ 106 79
Restructured loans ..................................
------------------ ---------------------
Total Nonperforming Loans......................... 3,811 3,032
Other real estate owned.............................. 274
------------------- ----------------------
TOTAL NONPERFORMING ASSETS......................... $4,085 $3,032
------ ------
</TABLE>
ALLOWANCE AND PROVISION FOR LOAN LOSSES
The allowance for loan losses represents the amounts that the Company
has set aside for the specific purpose of absorbing losses that may occur in the
Company's loan portfolio. The provision for loan losses is an expense charged
against operating income and added to the allowance for loan losses. Management
of the Company continues to carefully monitor the allowance for loan losses in
relation to the size of the Company's loan portfolio and known risks or problem
loans.
The allowance for loan losses was $10.8 million at June 30, 2000,
compared to $10.6 million at December 31, 1999. The allowance for loan losses
was 1.97% of gross loans at June 30, 2000 compared to 2.18% at December 31,
1999. The Company provided additional reserve of $400,000 in the first quarter
of 2000, which was the same amount the Company had provided for the same period
in 1999. Management believes the level of allowance as of June 30, 2000 is
adequate to absorb losses inherent in the loan portfolio.
The following table shows the provisions made for loan losses, the
amount of loans charged off, the recoveries on loans previously charged off
together with the balance in the allowance for possible loan losses at the
beginning and end of each period, the amount of average and total loans
outstanding, and other pertinent ratios as of the dates and for the periods
indicated:
<TABLE>
<CAPTION>
JUNE 30, 2000 DECEMBER 31, 1999
(UNAUDITED) (AUDITED)
-------------------- -- ----------------------
(DOLLARS IN THOUSANDS)
<S> <C> <C>
LOANS:
Average total loans.................................... $531,378 $407,171
Total gross loans at end of period..................... 565,114 486,782
ALLOWANCE:
BALANCE - BEGINNING OF PERIOD.......................... $10,624 $10,423
Loans charged off: 842 2,001
Less: Recoveries on loan previous charged off 340 1,202
--- -----
Less: Net loan charged-off 502 799
Add: Provision for loan losses 1,000 1,000
----- -----
BALANCE - END OF PERIOD $11,122 $10,624
------- -------
RATIO
Net loan charge-offs to average total loans 0.19% 0.20%
Allowance for loan losses to gross loans at end of 1.97% 2.18%
period
Net loans charge-offs to allowance for loan losses at 4.51% 7.52%
the
end of period
Allowance for loan losses to nonperforming loans 272.26% 350.40%
</TABLE>
15
<PAGE>
DEPOSITS AND OTHER BORROWINGS
At June 30, 2000, the Company's total deposits were $728.8 million.
This represented an increase of $73.1 million or 11.15%, from total deposits of
$655.7 million at December 31, 1999. Demand deposits totaled $210.4 million,
representing an increase of approximately $17.2 million or 8.91% from total
demand deposits of $193.2 million at December 31, 1999.
Time deposits over $100,000 totaled $154.9 million at June 30, 2000.
This represented an increase of approximately $31.4 million or 25.42%, compared
to $123.5 million at December 31, 1999.
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL
In order to ensure adequate levels of capital, the Company conducts an
ongoing assessment of projected sources and uses of capital in conjunction with
projected increases in assets and levels of risk. Management considers, among
other things, on an ongoing basis, cash generated from operations, access to
capital from financial markets or the issuance of additional securities,
including common stock or notes, to meet the Company's capital needs. Total
shareholders' equity was $71.3 million at June 30, 2000. This represented an
increase of $3.5 million or 5.24% over total shareholders' equity of $67.8
million at December 31, 1999.
The federal banking agencies require a minimum ratio of qualifying
total capital to risk-adjusted assets of 8% and a minimum ratio of Tier 1
capital to risk-adjusted assets of 4%. In addition to the risk-based guidelines,
federal banking regulators require banking organizations to maintain a minimum
amount of Tier 1 capital to total assets, referred to as the leverage ratio. For
a banking organization rated in the highest of the five categories used by
regulators to rate banking organizations, the minimum leverage ratio of Tier 1
capital to total assets must be 3%. In addition to these uniform risk-based
capital guidelines and leverage ratios that apply across the industry, the
regulators have the discretion to set individual minimum capital requirements
for specific institutions at rates significantly above the minimum guidelines
and ratios.
At June 30, 2000, Tier 1 capital, shareholders' equity less intangible
assets, was $71.9 million. This represented an increase of $3.7 million or 5.43%
over total Tier 1 capital of $68.2 million at December 31, 1999. At June 30,
2000, the Company had a ratio of total capital to total risk-weighted assets of
13.44 % and a ratio of Tier 1 capital to total risk weighted assets of 12.19%.
The Tier 1 leverage ratio was 8.84% at June 30, 2000. The following table sets
forth Company's regulatory capital ratios at June 30, 2000.
The following table presents the amounts of regulatory capital and the
capital ratio for the Company, compared to regulatory capital requirements for
adequacy purposes as of June 30, 2000.
16
<PAGE>
<TABLE>
<CAPTION>
AS OF JUNE 30, 2000 (DOLLARS IN THOUSANDS)
-------------------------------------------------------------------------
ACTUAL REQUIRED EXCESS
AMOUNT RATIO AMOUNT RATIO AMOUNT RATIO
------ ----- ------ ----- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Total capital (to risk-weighted assets) $78,704 13.34% $47,198 8% 31,506 5.34%
Tier I capital (to risk-weighted assets) 74,958 12.70% 23,609 4% 51,349 8.70%
Tier I capital (to average assets) 74,958 9.40% 31,897 4% 43,061 5.40%
</TABLE>
17
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
GENERAL
Market risk is the risk of loss to future earnings, to fair values,
or to future cash flows that may result from changes in the price of a
financial instrument. The value of a financial instrument may change as a
result of changes in interest rates, foreign currency exchange rates,
commodity prices, equity prices, and other market changes that affect market
risk sensitive instruments. Market risk is attributed to all market risk
sensitive financial instruments, including securities, loans, deposits, and
borrowings, as well as derivative instruments. Our exposure to market risk is
a function of our asset and liability management activities and other roles
as a financial intermediary in customer-related transactions. The objective
of market risk management is to avoid excessive exposure of our earnings and
equity to loss and to reduce the volatility inherent in certain financial
instruments.
The management of market risk is governed by policies reviewed and
approved annually by the Board of Directors ("Board"). The Board delegates
responsibility for market risk management to the Asset and Liability Management
Committee (ALCO), which is composed of the Company's senior executives and other
designated officers. ALCO makes changes in the mix of assets and liabilities.
ALCO also reviews and approves market risk-management programs and market risk
limits
LIQUIDITY AND INTEREST RATE SENSITIVITY
Liquidity risk is the risk to earnings or capital resulting from the
Company's inability to meet its obligations when they come due without incurring
unacceptable losses. Liquidity risk includes the ability to manage unplanned
decreases or changes in funding sources and to recognize or address changes in
market conditions that affect the Company's ability to liquidate assets quickly
and with a minimum loss of value. Factors considered in liquidity risk
management are stability of the deposit base, marketability, maturity, and
pledging of investments, and demand for credit.
In general, the Company manages liquidity risk daily by controlling the
level of federal funds and the use of funds provided by the cash flow from the
investment portfolio and scheduled loan repayment. To meet unexpected demands,
lines of credit are maintained with correspondent banks, and the Federal Reserve
Bank. The sale of securities available-for-sale also can also serve as a
contingent source of funds. Increases in deposit rates are considered a last
resort as a means of raising funds to increase liquidity.
The Company's liquid assets include cash and cash equivalents,
interest-bearing deposits in corresponding banks, federal funds sold and
securities available-for-sale. The aggregate of these assets totaled $205.6
million at June 30, 2000 compared to $ 168.6 million at December 31, 1999.
Because the primary sources and uses of funds are loans and deposits,
the relationship between gross loans and deposits provides a useful measure of
the Company's liquidity. Typically, the closer the ratio of loans to deposits is
to 100%, the more reliant the Company relies on its loan portfolio to provide
for short- term liquidity needs. Because repayment of loans tends to be less
predictable than the maturity of investments and other liquid resources, the
higher the
18
<PAGE>
loan to deposit ratio, the less liquid are the Company's assets. For the
first six months of 2000, the Company's loan to deposit ratio averaged
73.46%, compared to an average ratio of 58.26% for the same period last year.
The Company is engaged in asset and liability management activities
with the objective of reducing adverse changes in earnings as a result of
changes in interest rates. The management of interest rate risk relates to the
timing and magnitude of the repricing of assets compared to liabilities and has
the control of risks associated with movements in interest rates.
The ALCO meets monthly to monitor the interest rate risk and may direct
changes in the composition of the balance sheet. The company's balance sheet is
inherently asset sensitive, which means that assets generally reprice more often
than liabilities. Since an asset-sensitive balance sheet tends to reduce net
interest income when interest rates decline and to increase net interest income
when interest rate rise, careful forecast of interest rate and security
portfolio changes are used to manage the interest rate risk.
The Company currently uses the interest rate gap to measure interest
rate risk. It is the difference between interest-earning assets and
interest-bearing liabilities maturing or repricing within specified periods. The
gap analysis presented below indicates that assets that are rate sensitive
within one year exceeded liabilities within that same period by $46.5 million at
June 30, 2000. The following table shows the Company's gap position as of June
30, 2000.
19
<PAGE>
<TABLE>
<CAPTION>
----------------------------- ----------- ------------ -------------- ------------ ------------- -----------
WITHIN AFTER SIX AFTER ONE AFTER NON-SENSITIVE TOTAL
SIX MONTHS MONTHS BUT YEAR BUT FIVE YEARS ASSETS
WITHIN ONE WITHIN FIVE
YEAR YEARS
----------------------------- ----------- ------------ -------------- ------------ ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
CASH $65,039 $65,039
INVESTMENTS:
Fixed $11,910 $21,096 $63,885 $60,230 157,121
Floating 8,050 8,050
Unrealized Loss (5,157) (5,157)
LOANS:
Fixed 14,970 36,665 70,066 63,726 185,427
Floating 379,924 (4,274) 375,650
Nonaccrual 3,705 3,705
Unearned income & LLR (12,743) (12,743)
Federal funds sold 66,400 66,400
Accrued interest receivable 5,721 5,721
Customer liabilities 3,071 3,071
Other assets 25,556 25,556
----------------------------- ----------- ------------ -------------- ------------ ------------- -----------
TOTAL ASSETS $490,046 $57,761 $133,951 $123,956 $72,126 $877,840
======== ======= ======== ======== ======= ========
----------------------------- ----------- ------------ -------------- ------------ ------------- -----------
LIABILITIES
DEPOSITS:
Demand deposit 18,022 69,836 114,891 22,527 225,276
Time certificate of 88,551 71,524 2,519 162,594
deposit
$100,000 or more
Time certificate of 108,668 131,782 4,470 51 244,971
deposit
Under $100,000
Money market 7,427 33,777 49,444 7,405 98,053
Savings Accounts 4,610 19,353 29,476 1,666 1,782 56,887
ACCRUED INTEREST PAYABLE 4,253 4,253
ACCEPTANCE OUTSTANDING 3,071 3,071
OTHER BORROWED MONEY 4,500 4,500
OTHER LIABILITIES 2,959 2,959
----------------------------- ----------- ------------ -------------- ------------ ------------- -----------
TOTAL LIABILITIES 242,061 326,272 200,800 31,649 1,782 802,564
----------------------------- ----------- ------------ -------------- ------------ ------------- -----------
----------------------------- ----------- ------------ -------------- ------------ ------------- -----------
SHAREHOLDERS' EQUITY 75,276 75,276
------ ------
----------------------------- ----------- ------------ -------------- ------------ ------------- -----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $242,061 $326,272 $200,800 $31,649 $77,058 $877,840
======== ======== ======== ======= ======= ========
Net gap position $247,985 $(268,511) $(66,849) $92,307 $(4,932)
Net cumulative gap position 247,985 (20,527) (87,376) 4,931
Cumulative gap/assets 28.25% (2.34)% (9.95)% .56%
Cumulative gap/interest
earning assets 31.86% (2.64)% (11.22)% .63%
----------------------------- ----------- ------------ -------------- ------------ ------------- -----------
</TABLE>
20
<PAGE>
PART II
ITEM 1 LEGAL PROCEEDINGS
None
ITEM 2 CHANGES IN SECURITIES
None
ITEM 3 DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5 OTHER INFORMATION
None
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
(b) Reports on Form 8-K
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Hanmi Financial Corporation
Date: August 14, 2000 By /s/ Yong Ku Choe
----------------------------
Yong Ku Choe
Chief Financial Officer
(Principal financial or
accounting officer and duly
authorized signatory)
21
