Bay Street News

Hanmi Reports 2024 Second Quarter Results

LOS ANGELES, July 23, 2024 (GLOBE NEWSWIRE) — Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the second quarter of 2024.

Net income for the second quarter of 2024 was $14.5 million, or $0.48 per diluted share, compared with $15.2 million, or $0.50 per diluted share, for the first quarter of 2024. The return on average assets for the second quarter of 2024 was 0.77% and the return on average equity was 7.50%, compared with a return on average assets of 0.81% and the return on average equity of 7.90% for the first quarter of 2024.

CEO Commentary
“Our second quarter results demonstrate that while the economic environment has been challenging, we are observing improved business activity and stabilizing margin pressure,” said Bonnie Lee, President and Chief Executive Officer of Hanmi. Our relationship banking model has enabled us to attract new customers, resulting in 17% quarterly growth in loan production as well as growth in demand deposit accounts, further expanding our market share. Importantly, our rigorous underwriting practices continue to generate excellent asset quality.”

“As we look to the second half of 2024, we are progressing with a robust balance sheet, ample liquidity and strong capital ratios. We continue to prioritize our customers by enhancing their Hanmi experience through strategic technology investments, which are also enabling us to achieve operational efficiencies. Finally, our prudent expense and credit management has positioned Hanmi to capitalize on the growth opportunities ahead. I am thankful to our team of bankers and support staff who continue to foster meaningful relationships with our customers and enhance our franchise value.”

Second Quarter 2024 Highlights:        

For more information about Hanmi, please see the Q2 2024 Investor Update (and Supplemental Financial Information), which is available on the Bank’s website at www.hanmi.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov. Also, please refer to “Non-GAAP Financial Measures” herein for further details of the presentation of certain non-GAAP financial measures.

Quarterly Highlights
(Dollars in thousands, except per share data)

  As of or for the Three Months Ended     Amount Change  
  June 30,     March 31,     December 31,     September 30,     June 30,     Q2-24     Q2-24  
  2024     2024     2023     2023     2023     vs. Q1-24     vs. Q2-23  
                                         
Net income $ 14,451     $ 15,164     $ 18,633     $ 18,796     $ 20,620     $ (713 )   $ (6,169 )
Net income per diluted common share $ 0.48     $ 0.50     $ 0.61     $ 0.62     $ 0.67     $ (0.02 )   $ (0.19 )
                                         
Assets $ 7,586,347     $ 7,512,046     $ 7,570,341     $ 7,350,140     $ 7,344,924     $ 74,301     $ 241,423  
Loans receivable $ 6,176,359     $ 6,177,840     $ 6,182,434     $ 6,020,785     $ 5,965,171     $ (1,481 )   $ 211,188  
Deposits $ 6,329,340     $ 6,376,060     $ 6,280,574     $ 6,260,072     $ 6,315,768     $ (46,720 )   $ 13,572  
                                         
Return on average assets   0.77 %     0.81 %     0.99 %     1.00 %     1.12 %     -0.04       -0.35  
Return on average stockholders’ equity   7.50 %     7.90 %     9.70 %     9.88 %     11.14 %     -0.40       -3.64  
                                         
Net interest margin   2.69 %     2.78 %     2.92 %     3.03 %     3.11 %     -0.09       -0.42  
Efficiency ratio (1)   62.24 %     62.42 %     58.86 %     51.82 %     54.11 %     -0.18       8.13  
                                         
Tangible common equity to tangible assets (2)   9.19 %     9.23 %     9.14 %     8.89 %     8.96 %     -0.04       0.23  
Tangible common equity per common share (2) $ 22.99     $ 22.86     $ 22.75     $ 21.45     $ 21.56       0.13       1.43  
                                         
                                         
(1)      Noninterest expense divided by net interest income plus noninterest income.
(2)      Refer to “Non-GAAP Financial Measures” for further details.
 

Results of Operations
Net interest income for the second quarter decreased to $48.6 million from $50.7 million for the second quarter of 2024, down 4.0%. The decrease was primarily due to an increase in the cost of interest-bearing deposits. The cost of interest-bearing deposits increased 11 basis points to 4.27% for the second quarter of 2024, from 4.16% for the first quarter of 2024. The increase in the cost of interest-bearing deposits was due to higher market interest rates. Average interest-bearing deposits were $4.38 billion for the second quarter, down 0.6% from $4.41 billion for the first quarter of 2024. The yield on average loans for the second quarter decreased to 5.99% from 6.00% for the first quarter of 2024. Average loans were $6.09 billion for the second quarter, down 0.8% from $6.14 billion for the first quarter of 2024. Second quarter loan prepayment fees were $0.1 million, compared with $0.2 million for the first quarter of 2024. Net interest margin (taxable-equivalent) for the second quarter was 2.69%, compared with 2.78% for the first quarter of 2024.

  As of or For the Three Months Ended (in thousands)     Percentage Change  
  Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-24     Q2-24  
Net Interest Income 2024     2024     2023     2023     2023     vs. Q1-24     vs. Q2-23  
                                         
Interest and fees on loans receivable(1) $ 90,752     $ 91,674     $ 89,922     $ 85,398     $ 83,567       -1.0 %     8.6 %
Interest on securities   5,238       4,955       4,583       4,204       4,126       5.7 %     27.0 %
Dividends on FHLB stock   357       361       341       317       283       -1.1 %     26.1 %
Interest on deposits in other banks   2,313       2,604       2,337       4,153       2,794       -11.2 %     -17.2 %
Total interest and dividend income $ 98,660     $ 99,594     $ 97,183     $ 94,072     $ 90,770       -0.9 %     8.7 %
                                         
Interest on deposits   46,495       45,638       40,277       36,818       32,115       1.9 %     44.8 %
Interest on borrowings   1,896       1,655       2,112       753       1,633       14.6 %     16.1 %
Interest on subordinated debentures   1,649       1,646       1,654       1,646       1,600       0.2 %     3.1 %
Total interest expense   50,040       48,939       44,043       39,217       35,348       2.2 %     41.6 %
Net interest income $ 48,620     $ 50,655     $ 53,140     $ 54,855     $ 55,422       -4.0 %     -12.3 %
                                         
(1)      Includes loans held for sale.
  For the Three Months Ended (in thousands)     Percentage Change  
Average Earning Assets and  Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-24     Q2-24  
Interest-bearing Liabilities 2024     2024     2023     2023     2023     vs. Q1-24     vs. Q2-23  
Loans receivable (1) $ 6,089,440     $ 6,137,888     $ 6,071,644     $ 5,915,423     $ 5,941,071       -0.8 %     2.5 %
Securities   979,671       969,520       961,551       955,473       971,531       1.0 %     0.8 %
FHLB stock   16,385       16,385       16,385       16,385       16,385       0.0 %     0.0 %
Interest-bearing deposits in other banks   180,177       201,724       181,140       317,498       230,974       -10.7 %     -22.0 %
Average interest-earning assets $ 7,265,673     $ 7,325,517     $ 7,230,720     $ 7,204,779     $ 7,159,961       -0.8 %     1.5 %
                                         
Demand: interest-bearing $ 85,443     $ 86,401     $ 86,679     $ 94,703     $ 99,057       -1.1 %     -13.7 %
Money market and savings   1,845,870       1,815,085       1,669,973       1,601,826       1,463,304       1.7 %     26.1 %
Time deposits   2,453,154       2,507,830       2,417,803       2,438,112       2,403,685       -2.2 %     2.1 %
Average interest-bearing deposits   4,384,467       4,409,316       4,174,455       4,134,641       3,966,046       -0.6 %     10.6 %
Borrowings   169,525       162,418       205,951       120,381       196,776       4.4 %     -13.8 %
Subordinated debentures   130,239       130,088       129,933       129,780       129,631       0.1 %     0.5 %
Average interest-bearing liabilities $ 4,684,231     $ 4,701,822     $ 4,510,339     $ 4,384,802     $ 4,292,453       -0.4 %     9.1 %
                                         
Average Noninterest Bearing Deposits                                        
Demand deposits – noninterest bearing $ 1,883,765     $ 1,921,189     $ 2,025,212     $ 2,136,156     $ 2,213,171       -1.9 %     -14.9 %
                                         
(1)      Includes loans held for sale.
  For the Three Months Ended     Yield/Rate Change  
  Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-24     Q2-24  
Average Yields and Rates 2024     2024     2023     2023     2023     vs. Q1-24     vs. Q2-23  
Loans receivable(1)   5.99 %     6.00 %     5.88 %     5.73 %     5.64 %     -0.01       0.35  
Securities (2)   2.17 %     2.07 %     1.93 %     1.79 %     1.73 %     0.10       0.44  
FHLB stock   8.77 %     8.87 %     8.25 %     7.67 %     6.92 %     -0.10       1.85  
Interest-bearing deposits in other banks   5.16 %     5.19 %     5.12 %     5.19 %     4.85 %     -0.03       0.31  
Interest-earning assets   5.46 %     5.47 %     5.34 %     5.19 %     5.09 %     -0.01       0.37  
                                         
Interest-bearing deposits   4.27 %     4.16 %     3.83 %     3.53 %     3.25 %     0.11       1.02  
Borrowings   4.50 %     4.10 %     4.07 %     2.48 %     3.33 %     0.40       1.17  
Subordinated debentures   5.07 %     5.06 %     5.09 %     5.07 %     4.94 %     0.01       0.13  
Interest-bearing liabilities   4.30 %     4.19 %     3.88 %     3.55 %     3.30 %     0.11       1.00  
                                         
Net interest margin (taxable equivalent basis)   2.69 %     2.78 %     2.92 %     3.03 %     3.11 %     -0.09       -0.42  
                                         
Cost of deposits   2.98 %     2.90 %     2.58 %     2.33 %     2.08 %     0.08       0.90  
                                         
(1)      Includes loans held for sale.
(2)      Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.
 

Credit loss expense for the second quarter was $1.0 million, compared with $0.2 million for the first quarter of 2024. Second quarter credit loss expense included a $1.3 million credit loss expense for loan losses, offset by a $0.3 million recovery for off-balance sheet items. Second quarter net loan charge-offs were $1.8 million, compared with first quarter of 2024 net loan charge-offs of $1.6 million.

Noninterest income for the second quarter increased $0.4 million to $8.1 million, or 4.2%, from $7.7 million for the first quarter of 2024. The increase primarily reflected $0.3 million in bank-owned life insurance benefit income in the second quarter of 2024. Additionally, gains on sales of SBA loans were $1.6 million for the second quarter of 2024, compared with $1.5 million for the first quarter of 2024. The volume of SBA loans sold in the second quarter decreased to $23.5 million, from $25.6 million for the first quarter of 2024, while trade premiums increased to 8.54% for the second quarter, from 7.23% for the first quarter of 2024. Moreover, gains on the sale of mortgage loans continued in the second quarter, whereby loans sold were $19.5 million, at a premium of 2.00%, compared with $29.7 million and 2.27% for the first quarter, resulting in income of $0.4 million for each period.

  For the Three Months Ended (in thousands)     Percentage Change  
  Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-24     Q2-24  
Noninterest Income 2024     2024     2023     2023     2023     vs. Q1-24     vs. Q2-23  
Service charges on deposit accounts $ 2,429     $ 2,450     $ 2,391     $ 2,605     $ 2,571       -0.9 %     -5.5 %
Trade finance and other service charges and fees   1,277       1,414       1,245       1,155       1,173       -9.7 %     8.9 %
Servicing income   796       712       772       838       825       11.8 %     -3.5 %
Bank-owned life insurance income (expense)   638       304       (29 )     280       271       109.9 %     135.4 %
All other operating income   908       928       853       1,178       1,811       -2.2 %     -49.9 %
Service charges, fees & other   6,048       5,808       5,232       6,056       6,651       4.1 %     -9.1 %
                                         
Gain on sale of SBA loans   1,644       1,482       1,448       1,172       1,212       10.9 %     35.6 %
Gain on sale of mortgage loans   365       443                         -17.6 %     100.0 %
Net gain (loss) on sales of securities                           (1,871 )     0.0 %     -100.0 %
Gain (loss) on sale of bank premises                     4,000             0.0 %     0.0 %
Legal settlement                           1,943       0.0 %     -100.0 %
Total noninterest income $ 8,057     $ 7,733     $ 6,680     $ 11,228     $ 7,935       4.2 %     1.5 %

Noninterest expense for the second quarter decreased to $35.3 million from $36.4 million for the first quarter of 2024. The decline was primarily due to a $1.2 million decrease in salaries and benefits arising from $0.6 million in seasonally lower employer taxes and benefits and a $0.6 million decrease in capitalized labor costs associated with the Company’s investment in a new loan origination system. All other categories of recurring noninterest expense combined, except for data processing, which increased by $0.1 million, decreased $0.5 million for the second quarter from the first quarter of 2024. Additionally, Hanmi recorded $0.3 million in nonrecurring branch consolidation expenses in the second quarter due to the consolidation of three branches; two branches in Texas and one branch in California. The efficiency ratio for the second quarter was 62.2%, compared with 62.4% for the first quarter of 2024.

  For the Three Months Ended (in thousands)     Percentage Change  
  Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-24     Q2-24  
  2024     2024     2023     2023     2023     vs. Q1-24     vs. Q2-23  
Noninterest Expense                                        
Salaries and employee benefits $ 20,434     $ 21,585     $ 20,062     $ 20,361     $ 20,365       -5.3 %     0.3 %
Occupancy and equipment   4,348       4,537       4,604       4,825       4,500       -4.2 %     -3.4 %
Data processing   3,686       3,551       3,487       3,490       3,465       3.8 %     6.4 %
Professional fees   1,749       1,893       1,977       1,568       1,376       -7.6 %     27.1 %
Supplies and communication   570       601       613       552       638       -5.2 %     -10.7 %
Advertising and promotion   669       907       990       534       748       -26.2 %     -10.6 %
All other operating expenses   3,251       3,160       3,252       2,852       3,243       2.9 %     0.2 %
Subtotal   34,707       36,234       34,985       34,182       34,335       -4.2 %     1.1 %
                                         
Branch consolidation expense   301                               100.0 %     100.0 %
Other real estate owned expense   6       22       15       16       4       -72.7 %     50.0 %
Repossessed personal property expense (income)   262       189       211       47       (59 )     38.6 %     -544.1 %
Total noninterest expense $ 35,276     $ 36,445     $ 35,211     $ 34,245     $ 34,280       -3.2 %     2.9 %

Hanmi recorded a provision for income taxes of $6.0 million for the second quarter of 2024, compared with $6.6 million for the first quarter of 2024, representing an effective tax rate of 29.3% and 30.2%, respectively. The first quarter of 2024 income tax expense included a $0.2 million charge for share-based compensation vesting and $0.2 million of additional expense associated with amended state tax returns.

Financial Position
Total assets at June 30, 2024 increased 1.0%, or $74.3 million, to $7.59 billion from $7.51 billion at March 31, 2024. The sequential quarter increase mainly reflected a 22.3%, or $57.0 million, increase in cash and due from banks, a $6.5 million increase in loans held for sale, and a $5.4 million increase in securities.

Loans receivable, before allowance for credit losses, were $6.18 billion at June 30, 2024, and was consistent with the balance at March 31, 2024. Loans held for sale, representing the guaranteed portion of SBA 7(a) loans, were $10.5 million as of June 30, 2024, up from $4.0 million as of March 31, 2024.

  As of (in thousands)     Percentage Change  
  Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-24     Q2-24  
  2024     2024     2023     2023     2023     vs. Q1-24     vs. Q2-23  
Loan Portfolio                                        
Commercial real estate loans $ 3,888,505     $ 3,878,677     $ 3,889,739     $ 3,773,015     $ 3,738,325       0.3 %     4.0 %
Residential/consumer loans   954,209       970,362       962,661       926,326       886,984       -1.7 %     7.6 %
Commercial and industrial loans   802,372       774,851       747,819       728,792       753,456       3.6 %     6.5 %
Equipment finance   531,273       553,950       582,215       592,652       586,406       -4.1 %     -9.4 %
Loans receivable   6,176,359       6,177,840       6,182,434       6,020,785       5,965,171       0.0 %     3.5 %
Loans held for sale   10,467       3,999       12,013       11,767       7,293       161.7 %     43.5 %
Total $ 6,186,826     $ 6,181,839     $ 6,194,447     $ 6,032,552     $ 5,972,464       0.1 %     3.6 %
  As of  
  Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,  
  2024     2024     2023     2023     2023  
Composition of Loan Portfolio                            
Commercial real estate loans   62.9 %     62.7 %     62.8 %     62.5 %     62.6 %
Residential/consumer loans   15.4 %     15.7 %     15.5 %     15.4 %     14.9 %
Commercial and industrial loans   13.0 %     12.5 %     12.1 %     12.1 %     12.6 %
Equipment finance   8.5 %     9.0 %     9.4 %     9.8 %     9.8 %
Loans receivable   99.8 %     99.9 %     99.8 %     99.8 %     99.9 %
Loans held for sale   0.2 %     0.1 %     0.2 %     0.2 %     0.1 %
Total   100.0 %     100.0 %     100.0 %     100.0 %     100.0 %

New loan production was $273.9 million for the second quarter of 2024 at an average rate of 8.31%, while payoffs were $148.4 million during the quarter at an average rate of 8.10%.

Commercial real estate loan production for the second quarter of 2024 was $87.6 million. Commercial and industrial loan production was $59.0 million, SBA loan production was $54.5 million, equipment finance production was $42.6 million, and residential mortgage loan production was $30.2 million.

  For the Three Months Ended (in thousands)  
  Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,  
  2024     2024     2023     2023     2023  
New Loan Production                            
Commercial real estate loans $ 87,632     $ 60,085     $ 178,157     $ 106,151     $ 40,989  
Commercial and industrial loans   59,007       50,789       52,079       67,907       36,322  
SBA loans   54,486       30,817       48,432       36,109       30,926  
Equipment finance   42,594       39,155       57,334       71,075       50,905  
Residential/consumer loans   30,194       53,115       53,465       55,026       100,161  
subtotal   273,913       233,961       389,467       336,268       259,303  
                             
                             
Payoffs   (148,400 )     (86,250 )     (77,961 )     (62,140 )     (120,609 )
Amortization   (83,640 )     (90,711 )     (106,610 )     (116,411 )     (102,248 )
Loan sales   (42,945 )     (55,321 )     (29,861 )     (22,496 )     (20,933 )
Net line utilization   1,929       (4,150 )     (11,609 )     (70,238 )     (28,092 )
Charge-offs & OREO   (2,338 )     (2,123 )     (1,777 )     (9,369 )     (2,708 )
                             
Loans receivable-beginning balance   6,177,840       6,182,434       6,020,785       5,965,171       5,980,458  
Loans receivable-ending balance $ 6,176,359     $ 6,177,840     $ 6,182,434     $ 6,020,785     $ 5,965,171  

Deposits were $6.33 billion at the end of the second quarter of 2024, down $46.7 million, or 0.7%, from $6.38 billion at the end of the preceding quarter. Driving the change was a $44.2 million decrease in time deposits and a $25.1 million decrease in money market and savings deposits, partially offset by a $26.9 million increase in noninterest-bearing demand deposits. Noninterest-bearing demand deposits represented 31.0% of total deposits at June 30, 2024 and the loan-to-deposit ratio was 97.6%.

  As of (in thousands)     Percentage Change  
  Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-24     Q2-24  
  2024     2024     2023     2023     2023     vs. Q1-24     vs. Q2-23  
Deposit Portfolio                                        
Demand: noninterest-bearing $ 1,959,963     $ 1,933,060     $ 2,003,596     $ 2,161,238     $ 2,206,078       1.4 %     -11.2 %
Demand: interest-bearing   82,981       87,374       87,452       88,133       97,076       -5.0 %     -14.5 %
Money market and savings   1,834,797       1,859,865       1,734,658       1,576,006       1,580,691       -1.3 %     16.1 %
Time deposits   2,451,599       2,495,761       2,454,868       2,434,695       2,431,923       -1.8 %     0.8 %
Total deposits $ 6,329,340     $ 6,376,060     $ 6,280,574     $ 6,260,072     $ 6,315,768       -0.7 %     0.2 %
  As of  
  Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,  
  2024     2024     2023     2023     2023  
Composition of Deposit Portfolio                            
Demand: noninterest-bearing   31.0 %     30.3 %     31.9 %     34.5 %     34.9 %
Demand: interest-bearing   1.3 %     1.4 %     1.4 %     1.4 %     1.5 %
Money market and savings   29.0 %     29.2 %     27.6 %     25.2 %     25.0 %
Time deposits   38.7 %     39.1 %     39.1 %     38.9 %     38.6 %
Total deposits   100.0 %     100.0 %     100.0 %     100.0 %     100.0 %

Stockholders’ equity at June 30, 2024 was $707.1 million, up $4.0 million from $703.1 million at March 31, 2024. Second quarter net income, net of dividends paid, added $6.9 million to stockholders’ equity for the period. Offsetting this addition was a $0.9 million increase in unrealized after-tax losses on securities available for sale due to changes in interest rates during the second quarter and a $0.2 million increase in unrealized after-tax losses on cash flow hedges. In addition, Hanmi repurchased 170,000 shares of common stock during the quarter at an average share price of $16.05. At June 30, 2024, 1,330,000 shares remain under Hanmi’s share repurchase program. Tangible common stockholders’ equity was $696.0 million, or 9.19% of tangible assets, at June 30, 2024, compared with $692.0 million, or 9.23% of tangible assets at the end of the first quarter of 2024.

Hanmi and the Bank exceeded minimum regulatory capital requirements, and the Bank continues to exceed the minimum for the “well capitalized” category. At June 30, 2024, Hanmi’s preliminary common equity tier 1 capital ratio was 12.11% and its total risk-based capital ratio was 15.24%, compared with 12.05% and 15.20%, respectively, at the end of the first quarter of 2024.

  As of     Ratio Change  
  Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-24     Q2-24  
  2024     2024     2023     2023     2023     vs. Q1-24     vs. Q2-23  
Regulatory Capital ratios (1)                                        
Hanmi Financial                                        
Total risk-based capital   15.24 %     15.20 %     14.95 %     15.07 %     15.11 %     0.04       0.13  
Tier 1 risk-based capital   12.46 %     12.40 %     12.20 %     12.30 %     12.25 %     0.06       0.21  
Common equity tier 1 capital   12.11 %     12.05 %     11.86 %     11.95 %     11.90 %     0.06       0.21  
Tier 1 leverage capital ratio   10.51 %     10.36 %     10.37 %     10.27 %     10.22 %     0.15       0.29  
Hanmi Bank                                        
Total risk-based capital   14.51 %     14.50 %     14.27 %     14.42 %     14.45 %     0.01       0.06  
Tier 1 risk-based capital   13.47 %     13.44 %     13.26 %     13.42 %     13.39 %     0.03       0.08  
Common equity tier 1 capital   13.47 %     13.44 %     13.26 %     13.42 %     13.39 %     0.03       0.08  
Tier 1 leverage capital ratio   11.41 %     11.29 %     11.32 %     11.25 %     11.21 %     0.12       0.20  
                                         
(1)      Preliminary ratios for June 30, 2024                     
                                         

Asset Quality
Loans 30 to 89 days past due and still accruing were 0.22% of loans at the end of the second quarter of 2024, compared with 0.26% at the end of the prior quarter.

Criticized loans totaled $70.9 million at the end of the second quarter, down from $86.0 million at the end of the first quarter of 2024. Special mention loans were $36.9 million at the end of the second quarter, down from $62.3 million at March 31, 2024. Reductions in special mention loans included upgrades to pass of $17.9 million, paydowns and payoffs of $2.3 million and a downgrade of one loan relationship with total loans of $7.2 million. The upgrades to pass in the second quarter were mainly attributable to upgrades of $13.6 million on two commercial and industrial loans, and a $4.3 million upgrade on a commercial real estate loan. The quarter-over-quarter change also included increases from downgrades of $2.0 million of pass loans.

Classified loans were $33.9 million at June 30, 2024, up from $23.7 million at the end of the prior quarter. The $10.2 million increase was primarily driven by new loan downgrades to classified of $14.0 million, offset by charge-offs of $1.8 million, payoffs of $1.0 million, and paydowns and amortization of $1.0 million. The loan downgrades in the second quarter were primarily attributable to the previously mentioned $7.2 million in criticized loan downgrades.

Nonperforming loans were $19.2 million at June 30, 2024, up from $14.0 million at the end of the prior quarter. As a percentage of the loan portfolio, nonperforming loans were 0.31% at June 30, 2024, and 0.23% at the end of the first quarter.

Nonperforming assets were $20.0 million at the end of the second quarter of 2024, up from $14.1 million at the end of the prior quarter. The increase included a $0.7 million addition of a closed branch property. As a percentage of total assets, nonperforming assets were 0.26% at June 30, 2024, and 0.19% at the end of the first quarter.

Gross charge-offs for the second quarter of 2024 were $2.3 million, compared with $2.1 million for the preceding quarter. Recoveries of previously charged-off loans were $0.5 million in the second and first quarters of 2024. As a result, net charge-offs were $1.8 million for the second quarter of 2024, compared with net charge-offs of $1.6 million for the prior quarter.

The allowance for credit losses was $67.7 million at June 30, 2024, compared with $68.3 million at March 31, 2024. Specific allowances for loans increased $1.6 million, while the allowance for quantitative and qualitative considerations decreased $2.2 million. The ratio of the allowance for credit losses to loans was 1.10% at June 30, 2024, compared with 1.11% at March 31, 2024.

  As of or for the Three Months Ended (in thousands)     Amount Change  
  Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-24     Q2-24  
  2024     2024     2023     2023     2023     vs. Q1-24     vs. Q2-23  
Asset Quality Data and Ratios                                        
                                         
Delinquent loans:                                        
Loans, 30 to 89 days past due and still accruing $ 13,844     $ 15,839     $ 10,263     $ 9,545     $ 13,749     $ (1,995 )   $ 95  
Delinquent loans to total loans   0.22 %     0.26 %     0.17 %     0.16 %     0.23 %     -0.04       -0.01  
                                         
Criticized loans:                                        
Special mention $ 36,921     $ 62,317     $ 65,314     $ 76,473     $ 44,632     $ (25,396 )   $ (7,711 )
Classified   33,945       23,670       31,367       33,134       38,840       10,275       (4,895 )
Total criticized loans $ 70,866     $ 85,987     $ 96,681     $ 109,607     $ 83,472     $ (15,121 )   $ (12,606 )
                                         
Nonperforming assets:                                        
Nonaccrual loans $ 19,245     $ 14,025     $ 15,474     $ 15,783     $ 22,178     $ 5,220     $ (2,933 )
Loans 90 days or more past due and still accruing                                        
Nonperforming loans   19,245       14,025       15,474       15,783       22,178       5,220       (2,933 )
Other real estate owned, net   772       117       117       117       117       655       655  
Nonperforming assets* $ 20,017     $ 14,142     $ 15,591     $ 15,900     $ 22,295     $ 5,875     $ (2,278 )
                                         
Nonperforming assets to assets*   0.26 %     0.19 %     0.21 %     0.22 %     0.30 %     0.07       -0.04  
Nonperforming loans to total loans   0.31 %     0.23 %     0.25 %     0.26 %     0.37 %     0.08       -0.06  
                                         
* Excludes repossessed personal property of $1.2 million, $1.3 million, $1.3 million, $1.3 million, and $0.8 million as of Q2-24, Q1-24, Q4-23, Q3-23, and Q2-23, respectively  
  As of or for the Three Months Ended (in thousands)  
  Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,  
  2024     2024     2023     2023     2023  
Allowance for credit losses:                            
Balance at beginning of period $ 68,270     $ 69,462     $ 67,313     $ 71,024     $ 72,249  
Credit loss expense (recovery) on loans   1,248       404       (2,880 )     5,167       514  
Net loan (charge-offs) recoveries   (1,789 )     (1,596 )     5,029       (8,878 )     (1,739 )
Balance at end of period $ 67,729     $ 68,270     $ 69,462     $ 67,313     $ 71,024  
                             
Net loan charge-offs (recoveries) to average loans (1)   0.12 %     0.10 %     -0.33 %     0.60 %     0.12 %
Allowance for credit losses to loans   1.10 %     1.11 %     1.12 %     1.12 %     1.19 %
                             
Allowance for credit losses related to off-balance sheet items:                            
Balance at beginning of period $ 2,297     $ 2,474     $ 2,463     $ 2,476     $ 3,067  
Credit loss expense (recovery) on off-balance sheet items   (287 )     (177 )     11       (13 )     (591 )
Balance at end of period $ 2,010     $ 2,297     $ 2,474     $ 2,463     $ 2,476  
                             
Unused commitments to extend credit $ 795,391     $ 792,769     $ 813,960     $ 848,886     $ 791,818  
                             
(1)      Annualized                            
                             

Corporate Developments
On April 25, 2024, Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2024 second quarter of $0.25 per share. Hanmi paid the dividend on May 22, 2024, to stockholders of record as of the close of business on May 6, 2024.

Earnings Conference Call 
Hanmi Bank will host its second quarter 2024 earnings conference call today, July 23, 2024, at 2:00 p.m. PST (5:00 p.m. EST) to discuss these results. This call will also be webcast. To access the call, please dial 1-877-407-9039 before 2:00 p.m. PST, using access code Hanmi Bank. To listen to the call online, either live or archived, please visit Hanmi’s Investor Relations website at https://investors.hanmi.com/ where it will also be available for replay approximately one hour following the call.

About Hanmi Financial Corporation
Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 32 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.

Forward-Looking Statements
This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. 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 our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Forward-looking 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:

In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, 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.

Investor Contacts:
Romolo (Ron) Santarosa
Senior Executive Vice President & Chief Financial Officer
213-427-5636

Lisa Fortuna
Investor Relations
Financial Profiles, Inc.
lfortuna@finprofiles.com
310-622-8251

Hanmi Financial Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)

  June 30,     March 31,     Percentage     June 30,     Percentage  
  2024     2024     Change     2023     Change  
Assets                            
Cash and due from banks $ 313,079     $ 256,038     22.3 %   $ 344,907     -9.2 %
Securities available for sale, at fair value   877,638       872,190     0.6 %     836,650     4.9 %
Loans held for sale, at the lower of cost or fair value   10,467       3,999     161.7 %     7,293     43.5 %
Loans receivable, net of allowance for credit losses   6,108,630       6,109,570     0.0 %     5,894,147     3.6 %
Accrued interest receivable   23,958       23,032     4.0 %     18,163     31.9 %
Premises and equipment, net   21,955       21,952     0.0 %     22,849     -3.9 %
Customers’ liability on acceptances   551       161     242.2 %     1,688     -67.4 %
Servicing assets   6,836       6,890     -0.8 %     7,352     -7.0 %
Goodwill and other intangible assets, net   11,048       11,074     -0.2 %     11,162     -1.0 %
Federal Home Loan Bank (“FHLB”) stock, at cost   16,385       16,385     0.0 %     16,385     0.0 %
Bank-owned life insurance   56,534       56,639     -0.2 %     56,085     0.8 %
Prepaid expenses and other assets   139,266       134,116     3.8 %     128,243     8.6 %
Total assets $ 7,586,347     $ 7,512,046     1.0 %   $ 7,344,924     3.3 %
                             
Liabilities and Stockholders’ Equity                            
Liabilities:                            
Deposits:                            
Noninterest-bearing $ 1,959,963     $ 1,933,060     1.4 %   $ 2,206,078     -11.2 %
Interest-bearing   4,369,377       4,443,000     -1.7 %     4,109,690     6.3 %
Total deposits   6,329,340       6,376,060     -0.7 %     6,315,768     0.2 %
Accrued interest payable   47,699       38,007     25.5 %     34,621     37.8 %
Bank’s liability on acceptances   551       161     242.2 %     1,688     -67.4 %
Borrowings   292,500       172,500     69.6 %     125,000     134.0 %
Subordinated debentures   130,318       130,165     0.1 %     129,708     0.5 %
Accrued expenses and other liabilities   78,880       92,053     -14.3 %     69,579     13.4 %
Total liabilities   6,879,288       6,808,946     1.0 %     6,676,364     3.0 %
                             
Stockholders’ equity:                            
Common stock   34       34     0.0 %     33     3.0 %
Additional paid-in capital   588,647       587,687     0.2 %     585,391     0.6 %
Accumulated other comprehensive income   (78,000 )     (76,890 )   -1.4 %     (84,639 )   7.8 %
Retained earnings   333,392       326,526     2.1 %     296,901     12.3 %
Less treasury stock   (137,014 )     (134,257 )   -2.1 %     (129,126 )   -6.1 %
Total stockholders’ equity   707,059       703,100     0.6 %     668,560     5.8 %
Total liabilities and stockholders’ equity $ 7,586,347     $ 7,512,046     1.0 %   $ 7,344,924     3.3 %

Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except share and per share data)

  Three Months Ended  
  June 30,     March 31,     Percentage     June 30,     Percentage  
  2024     2024     Change     2023     Change  
Interest and dividend income:                            
Interest and fees on loans receivable $ 90,752     $ 91,674     -1.0 %   $ 83,567     8.6 %
Interest on securities   5,238       4,955     5.7 %     4,126     27.0 %
Dividends on FHLB stock   357       361     -1.1 %     283     26.1 %
Interest on deposits in other banks   2,313       2,604     -11.2 %     2,794     -17.2 %
Total interest and dividend income   98,660       99,594     -0.9 %     90,770     8.7 %
Interest expense:                            
Interest on deposits   46,495       45,638     1.9 %     32,115     44.8 %
Interest on borrowings   1,896       1,655     14.6 %     1,633     16.1 %
Interest on subordinated debentures   1,649       1,646     0.2 %     1,600     3.1 %
Total interest expense   50,040       48,939     2.2 %     35,348     41.6 %
Net interest income before credit loss expense   48,620       50,655     -4.0 %     55,422     -12.3 %
Credit loss expense (recovery)   961       227     323.3 %     (77 )   -1348.1 %
Net interest income after credit loss expense   47,659       50,428     -5.5 %     55,499     -14.1 %
Noninterest income:                            
Service charges on deposit accounts   2,429       2,450     -0.9 %     2,571     -5.5 %
Trade finance and other service charges and fees   1,277       1,414     -9.7 %     1,173     8.9 %
Gain on sale of Small Business Administration (“SBA”) loans   1,644       1,482     10.9 %     1,212     35.6 %
Other operating income   2,707       2,387     13.4 %     2,979     -9.1 %
Total noninterest income   8,057       7,733     4.2 %     7,935     1.5 %
Noninterest expense:                            
Salaries and employee benefits   20,434       21,585     -5.3 %     20,365     0.3 %
Occupancy and equipment   4,607       4,537     1.5 %     4,500     2.4 %
Data processing   3,686       3,551     3.8 %     3,465     6.4 %
Professional fees   1,749       1,893     -7.6 %     1,376     27.1 %
Supplies and communications   570       601     -5.2 %     638     -10.7 %
Advertising and promotion   669       907     -26.2 %     748     -10.6 %
Other operating expenses   3,561       3,371     5.6 %     3,188     11.7 %
Total noninterest expense   35,276       36,445     -3.2 %     34,280     2.9 %
Income before tax   20,440       21,716     -5.9 %     29,154     -29.9 %
Income tax expense   5,989       6,552     -8.6 %     8,534     -29.8 %
Net income $ 14,451     $ 15,164     -4.7 %   $ 20,620     -29.9 %
                             
Basic earnings per share: $ 0.48     $ 0.50           $ 0.68        
Diluted earnings per share: $ 0.48     $ 0.50           $ 0.67        
                             
Weighted-average shares outstanding:                            
Basic   30,055,913       30,119,646             30,324,264        
Diluted   30,133,646       30,119,646             30,387,041        
Common shares outstanding   30,272,110       30,276,358             30,485,788        

Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except share and per share data)

  Six Months Ended  
  June 30,     June 30,     Percentage  
  2024     2023     Change  
Interest and dividend income:                
Interest and fees on loans receivable $ 182,427     $ 164,490       10.9 %
Interest on securities   10,193       8,152       25.0 %
Dividends on FHLB stock   719       572       25.7 %
Interest on deposits in other banks   4,914       4,859       1.1 %
Total interest and dividend income   198,253       178,073       11.3 %
Interest expense:                
Interest on deposits   92,133       57,613       59.9 %
Interest on borrowings   3,551       4,002       -11.3 %
Interest on subordinated debentures   3,295       3,182       3.6 %
Total interest expense   98,979       64,797       52.8 %
Net interest income before credit loss expense   99,274       113,276       -12.4 %
Credit loss expense (recovery)   1,188       2,056       42.2 %
Net interest income after credit loss expense   98,086       111,220       -11.8 %
Noninterest income:                
Service charges on deposit accounts   4,878       5,151       -5.3 %
Trade finance and other service charges and fees   2,691       2,431       10.7 %
Gain on sale of Small Business Administration (“SBA”) loans   3,126       3,081       1.5 %
Other operating income   5,095       5,608       -9.1 %
Total noninterest income   15,790       16,271       -3.0 %
Noninterest expense:                
Salaries and employee benefits   42,019       40,975       2.5 %
Occupancy and equipment   9,144       8,912       2.6 %
Data processing   7,237       6,718       7.7 %
Professional fees   3,642       2,710       34.4 %
Supplies and communications   1,172       1,314       -10.8 %
Advertising and promotion   1,576       1,581       -0.3 %
Other operating expenses   6,930       4,862       42.5 %
Total noninterest expense   71,720       67,072       6.9 %
Income before tax   42,156       60,419       -30.2 %
Income tax expense   12,541       17,807       -29.6 %
Net income $ 29,615     $ 42,612       -30.5 %
                 
Basic earnings per share: $ 0.98     $ 1.40        
Diluted earnings per share: $ 0.97     $ 1.39        
                 
Weighted-average shares outstanding:                
Basic   30,089,341       30,320,281        
Diluted   30,166,181       30,383,226        
Common shares outstanding   30,272,110       30,485,788        

Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
(Dollars in thousands)

  Three Months Ended  
  June 30, 2024     March 31, 2024     June 30, 2023  
        Interest   Average           Interest   Average           Interest   Average  
  Average     Income /   Yield /     Average     Income /   Yield /     Average     Income /   Yield /  
  Balance     Expense   Rate     Balance     Expense   Rate     Balance     Expense   Rate  
Assets                                              
Interest-earning assets:                                              
Loans receivable (1) $ 6,089,440     $ 90,752     5.99 %   $ 6,137,888     $ 91,674     6.00 %   $ 5,941,071     $ 83,567     5.64 %
Securities (2)   979,671       5,238     2.17 %     969,520       4,955     2.07 %     971,531       4,126     1.73 %
FHLB stock   16,385       357     8.77 %     16,385       361     8.87 %     16,385       283     6.92 %
Interest-bearing deposits in other banks   180,177       2,313     5.16 %     201,724       2,604     5.19 %     230,974       2,794     4.85 %
Total interest-earning assets   7,265,673       98,660     5.46 %     7,325,517       99,594     5.47 %     7,159,961       90,770     5.09 %
                                               
Noninterest-earning assets:                                              
Cash and due from banks   55,442                 58,382                 62,036            
Allowance for credit losses   (67,908 )               (69,106 )               (72,098 )          
Other assets   252,410                 244,700                 232,058            
                                               
Total assets $ 7,505,617               $ 7,559,493               $ 7,381,957            
                                               
Liabilities and Stockholders’ Equity                                              
Interest-bearing liabilities:                                              
Deposits:                                              
Demand: interest-bearing $ 85,443     $ 32     0.15 %   $ 86,401     $ 30     0.14 %   $ 99,057     $ 27     0.11 %
Money market and savings   1,845,870       17,324     3.77 %     1,815,085       16,553     3.67 %     1,463,304       9,887     2.71 %
Time deposits   2,453,154       29,139     4.78 %     2,507,830       29,055     4.66 %     2,403,685       22,201     3.70 %
Total interest-bearing deposits   4,384,467       46,495     4.27 %     4,409,316       45,638     4.16 %     3,966,046       32,115     3.25 %
Borrowings   169,525       1,896     4.50 %     162,418       1,655     4.10 %     196,776       1,633     3.33 %
Subordinated debentures   130,239       1,649     5.07 %     130,088       1,646     5.06 %     129,631       1,600     4.94 %
Total interest-bearing liabilities   4,684,231       50,040     4.30 %     4,701,822       48,939     4.19 %     4,292,453       35,348     3.30 %
                                               
Noninterest-bearing liabilities and equity:                                              
Demand deposits: noninterest-bearing   1,883,765                 1,921,189                 2,213,171            
Other liabilities   162,543                 164,524                 133,623            
Stockholders’ equity   775,078                 771,958                 742,710            
                                               
Total liabilities and stockholders’ equity $ 7,505,617               $ 7,559,493               $ 7,381,957            
                                               
Net interest income       $ 48,620               $ 50,655               $ 55,422      
                                               
Cost of deposits             2.98 %               2.90 %               2.08 %
Net interest spread (taxable equivalent basis)             1.16 %               1.28 %               1.79 %
Net interest margin (taxable equivalent basis)             2.69 %               2.78 %               3.11 %
                                               
                                               
(1)       Includes average loans held for sale                            
(2)       Income calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.      


Hanmi Financial Corporation and Subsidiaries

Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
(Dollars in thousands)

  Six Months Ended  
  June 30, 2024     June 30, 2023  
        Interest   Average           Interest   Average  
  Average     Income /   Yield /     Average     Income /   Yield /  
  Balance     Expense   Rate     Balance     Expense   Rate  
Assets                              
Interest-earning assets:                              
Loans receivable (1) $ 6,113,664     $ 182,427     6.00 %   $ 5,942,726     $ 164,490     5.58 %
Securities (2)   974,596       10,193     2.12 %     976,096       8,152     1.70 %
FHLB stock   16,385       719     8.82 %     16,385       572     7.04 %
Interest-bearing deposits in other banks   190,950       4,914     5.18 %     212,043       4,859     4.62 %
Total interest-earning assets   7,295,595       198,253     5.46 %     7,147,250       178,073     5.02 %
                               
Noninterest-earning assets:                              
Cash and due from banks   56,912                 63,553            
Allowance for credit losses   (68,507 )               (71,777 )          
Other assets   248,555                 235,571            
                               
Total assets $ 7,532,555               $ 7,374,597            
                               
Liabilities and Stockholders’ Equity                              
Interest-bearing liabilities:                              
Deposits:                              
Demand: interest-bearing $ 85,922     $ 61     0.14 %   $ 104,196     $ 56     0.11 %
Money market and savings   1,830,478       33,877     3.72 %     1,458,463       17,201     2.38 %
Time deposits   2,480,492       58,195     4.72 %     2,314,148       40,356     3.52 %
Total interest-bearing deposits   4,396,892       92,133     4.21 %     3,876,807       57,613     3.00 %
Borrowings   165,972       3,551     4.30 %     232,219       4,002     3.48 %
Subordinated debentures   130,163       3,295     5.06 %     129,557       3,182     4.91 %
Total interest-bearing liabilities   4,693,027       98,979     4.24 %     4,238,583       64,797     3.08 %
                               
Noninterest-bearing liabilities and equity:                              
Demand deposits: noninterest-bearing   1,902,477                 2,268,485            
Other liabilities   163,533                 130,385            
Stockholders’ equity   773,518                 737,144            
                               
Total liabilities and stockholders’ equity $ 7,532,555               $ 7,374,597            
                               
Net interest income       $ 99,274               $ 113,276      
                               
Cost of deposits             2.94 %               1.89 %
Net interest spread (taxable equivalent basis)             1.22 %               1.94 %
Net interest margin (taxable equivalent basis)             2.74 %               3.20 %
                               
                               
(1)       Includes average loans held for sale                              
(2)       Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.  


Non-GAAP Financial Measures

Tangible Common Equity to Tangible Assets Ratio

Tangible common equity to tangible assets ratio is supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles (“GAAP”). This non-GAAP measure is used by management in the analysis of Hanmi’s capital strength. Tangible common equity is calculated by subtracting goodwill and other intangible assets from stockholders’ equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from stockholders’ equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Hanmi. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

The following table reconciles this non-GAAP performance measure to the GAAP performance measure for the periods indicated:

Tangible Common Equity to Tangible Assets Ratio (Unaudited)
(In thousands, except share, per share data and ratios)

  June 30,     March 31,     December 31,     September 30,     June 30,  
Hanmi Financial Corporation 2024     2024     2023     2023     2023  
Assets $ 7,586,347     $ 7,512,046     $ 7,570,341     $ 7,350,140     $ 7,344,924  
Less goodwill and other intangible assets   (11,048 )     (11,074 )     (11,099 )     (11,131 )     (11,162 )
Tangible assets $ 7,575,299     $ 7,500,972     $ 7,559,242     $ 7,339,009     $ 7,333,762  
                             
Stockholders’ equity (1) $ 707,059     $ 703,100     $ 701,891     $ 663,359     $ 668,560  
Less goodwill and other intangible assets   (11,048 )     (11,074 )     (11,099 )     (11,131 )     (11,162 )
Tangible stockholders’ equity (1) $ 696,011     $ 692,026     $ 690,792     $ 652,228     $ 657,398  
                             
Stockholders’ equity to assets   9.32 %     9.36 %     9.27 %     9.03 %     9.10 %
Tangible common equity to tangible assets (1)   9.19 %     9.23 %     9.14 %     8.89 %     8.96 %
                             
Common shares outstanding   30,272,110       30,276,358       30,368,655       30,410,582       30,485,788  
Tangible common equity per common share $ 22.99     $ 22.86     $ 22.75     $ 21.45     $ 21.56  
                             
                             
(1)      There were no preferred shares outstanding at the periods indicated.        


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