Hanmi’s Third Quarter Results Driven by Strong Growth in Loans and Net Income

2017 Third Quarter Highlights:      

  • Third quarter net income of $14.9 million, or $0.46 per diluted share, up 3.2% from the prior quarter and up 13.7% year-over-year.
  • Loans and leases receivable of $4.2 billion, up 12.0% in the third quarter on an annualized basis driven by new loan and lease production of $220.4 million; Loans and leases receivable up 18.1% year-over-year.
  • Deposits of $4.3 billion, up 3.6% in the third quarter on an annualized basis; Total deposits are up 14.0% year-over-year.
  • Net interest income increased to $44.9 million, up 4.0% from the prior quarter and 13.5% year-over-year.
  • Efficiency ratio improved to 53.3% from 54.7% for the prior quarter and 58.7% a year ago period.
  • Return on average assets was 1.18% and return on average equity was 10.73% compared with 1.19% and 10.65% for the prior quarter and 1.19% and 9.88% a year ago.

LOS ANGELES, Oct. 17, 2017 (GLOBE NEWSWIRE) — Hanmi Financial Corporation (NASDAQ:HAFC) or (“Hanmi”), the parent company of Hanmi Bank (the “Bank”) today reported net income for the 2017 third quarter of $14.9 million or $0.46 per diluted share, compared with $14.5 million, or $0.45 per diluted share for the 2017 second quarter and $13.1 million, or $0.41 per diluted share for the 2016 third quarter.

For the first nine months of 2017, net income increased 2.6% to $43.2 million, or $1.33 per diluted share, compared with $42.1 million, or $1.31 per diluted share, for the first nine months of 2016.

Mr. C. G. Kum, President and Chief Executive Officer, said, “Hanmi’s third quarter performance was highlighted by continued growth in earning assets and top line revenue. Loans and leases receivable increased by 3% during the third quarter, which resulted in a 9% increase on a year-to-date basis. Higher production in loans and leases drove a 4% increase in net interest income for the quarter. This growth, along with careful expense management, helped generate a quarterly net income of $14.9 million, or $0.46 per share, reflecting an attractive return on average assets of 1.18% and return on average equity of 10.73%. I am also pleased to note that the Company surpassed $5 billion in total assets.”

Mr. Kum concluded, “During the fourth quarter, we will be capitalizing on this momentum by expanding into New York City with the opening of our first retail branch in midtown Manhattan. As we look to strategically expand the Bank, the favorable demographics of New York City, which has the second largest Asian population among U.S. metropolitan areas, provides significant opportunities to grow our franchise.” 

 

Quarterly Highlights                            
 (in thousands, except per share data)                             
                             
   For the Three Months Ended    Amount Change  
  Sep 30,   Jun 30,   Mar 31,   Dec 31,   Sep 30,   Q3-17   Q3-17  
  2017   2017   2017   2016   2016   vs. Q2-17   vs. Q3-16  
                             
Net income $   14,923     $   14,457     $   13,783     $   14,416     $   13,121     $   466   $   1,802  
Net income per diluted common share $   0.46     $   0.45     $   0.43     $   0.45     $   0.41     $   0.01   $   0.05  
                             
Assets $   5,111,396     $   4,973,346     $   4,811,821     $   4,701,346     $   4,402,180     $   138,050   $   709,216  
Loans and leases receivable $   4,195,355     $   4,073,062     $   3,943,951     $   3,844,769     $   3,552,659     $   122,293   $   642,696  
Deposits $   4,299,010     $   4,259,173     $   4,083,165     $   3,809,737     $   3,771,207     $   39,837   $   527,803  
                             
Return on average assets   1.18 %     1.19 %     1.18 %     1.26 %     1.19 %     -0.01     -0.01  
Return on average stockholders’ equity   10.73 %     10.65 %     10.46 %     10.84 %     9.88 %     0.08     0.85  
                             
Net interest margin (1)   3.79 %     3.81 %     3.89 %     3.96 %     3.86 %     -0.02     -0.07  
Net interest margin excluding acquisition accounting (2)   3.76 %     3.76 %     3.84 %     3.86 %     3.75 %     0.00     0.01  
Efficiency ratio (3)   53.33 %     54.74 %     54.95 %     51.77 %     58.72 %     -1.41     -5.39  
Efficiency ratio excluding merger and integration costs   53.33 %     54.75 %     55.01 %     51.15 %     58.72 %     -1.42     -5.39  
                             
Tangible common equity to tangible assets (2)   10.72 %     10.83 %     10.98 %     11.05 %     12.04 %     -0.11     -1.32  
Tangible common equity per common share (2) $   16.86     $   16.59     $   16.26     $   16.03     $   16.42     $   0.27   $   0.44  
                             
(1)   Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.                      
(2)   Refer to “Non-GAAP Financial Measures” for further details.                          
(3)   Noninterest expense divided by net interest income plus noninterest income                          
                             

Results of Operations
Third quarter 2017 net interest income increased 4.0% to $44.9 million from $43.2 million in the second quarter primarily from the solid expansion of loans and leases receivables, partially offset by an increase in interest expense on deposits.  Interest and fees on loans and leases for the third quarter increased 4.8%, or $2.3 million, from the preceding quarter while interest expense on deposits increased 9.4%, or $0.6 million.

                             
   As of or For the Three Months Ended (in thousands)    Percentage Change  
  Sep 30,   Jun 30,   Mar 31,   Dec 31,   Sep 30,   Q3-17   Q3-17  
Net Interest Income 2017   2017   2017   2016   2016   vs. Q2-17   vs. Q3-16  
                             
Interest and fees on loans and leases(1) $   50,265   $   47,971   $   45,378   $   43,780   $   41,150   4.8 %   22.2 %  
Interest on securities     3,188       2,949       2,520       2,550       2,701   8.1 %   18.0 %  
Dividends on FRB and FHLB stock     286       283       374       927       419   1.1 %   -31.7 %  
Interest on deposits in other banks     123       123       77       55       55   0.0 %   123.6 %  
Total interest and dividend income                      $   53,862   $   51,326   $   48,349   $   47,312   $   44,325   4.9 %   21.5 %  
                             
Interest on deposits     7,071       6,463       5,154       4,799       4,358   9.4 %   62.3 %  
Interest on borrowings     198       49       468       207       179   304.1 %   10.6 %  
Interest on subordinated debentures     1,667       1,636       373       241       206   1.9 %   709.2 %  
Total interest expense     8,936       8,148       5,995       5,247       4,743   9.7 %   88.4 %  
Net interest income $   44,926   $   43,178   $   42,354   $   42,065   $   39,582   4.0 %   13.5 %  
                             
(1)  Includes loans held for sale.                            
                             

Net interest margin (on a taxable equivalent basis) for the third quarter of 2017 was 3.79%, down 2 basis points from 3.81% for the second quarter of 2017.  However, net interest margin, excluding acquisition accounting, for the third quarter of 2017 was 3.76%, same as the second quarter of 2017.  Loan interest income, as a percentage of average interest earning assets, increased the net interest margin by one basis point while deposit interest expense decreased the net interest margin by three basis points.  The average rate paid on interest-bearing deposits for the third quarter increased to 0.93% from 0.88% for the preceding quarter while the average cost of deposits increased similarly to 0.66% from 0.62%.  The average yield on loans and leases receivable was 4.87%, unchanged from the prior quarter.

                             
                             
   For the Three Months Ended (in thousands)    Percentage Change  
  Sep 30,   Jun 30,   Mar 31,   Dec 31,   Sep 30,   Q3-17   Q3-17  
Average Earning Assets and Interest-bearing Liabilities 2017   2017   2017   2016   2016   vs. Q2-17   vs. Q3-16  
Loans and lease receivables (1) $   4,092,131     $   3,951,934     $   3,881,686     $   3,690,955     $   3,477,428     3.5 %   17.7 %  
Securities     611,538         585,384         526,549         530,241         589,832     4.5 %   3.7 %  
FRB and FHLB stock     16,385         16,385         16,385         16,385         19,207     0.0 %   -14.7 %  
Interest-bearing deposits in other banks     38,981         47,402         38,600         40,548         43,678     -17.8 %   -10.8 %  
Average interest-earning assets $   4,759,035     $   4,601,105     $   4,463,220     $   4,278,129     $   4,130,145     3.4 %   15.2 %  
                             
Demand: interest-bearing $   90,720     $   93,873     $   97,602     $   95,399     $   93,852     -3.4 %   -3.3 %  
Money market and savings     1,526,951         1,532,733         1,406,903         1,305,565         1,141,747     -0.4 %   33.7 %  
Time deposits     1,384,724         1,320,005         1,173,184         1,165,828         1,244,127     4.9 %   11.3 %  
Average interest-bearing deposits     3,002,395         2,946,611         2,677,689         2,566,792         2,479,726     1.9 %   21.1 %  
Borrowings     67,935         20,000         270,500         174,674         152,935     239.7 %   -55.6 %  
Subordinated debentures     117,065         116,850         30,950         18,919         18,844     0.2 %   521.2 %  
Average interest-bearing liabilities $   3,187,395     $   3,083,461     $   2,979,139     $   2,760,385     $   2,651,505     3.4 %   20.2 %  
                             
(1)  Includes loans held for sale.                            
                             
   For the Three Months Ended    Amount Change  
  Sep 30,   Jun 31,   Mar 31,   Dec 31,   Sep 30,   Q3-17   Q3-17  
Average Yields and Rates 2017   2017   2016   2016   2016   vs. Q2-17   vs. Q3-16  
Loans and lease receivables (1)   4.87 %     4.87 %     4.74 %     4.72 %     4.71 %   0.00     0.16    
Securities (2)   2.41 %     2.35 %     2.30 %     2.31 %     2.18 %   0.06     0.23    
FRB and FHLB stock   6.93 %     6.93 %     9.26 %     22.63 %     8.73 %   0.00     -1.80    
Interest-bearing deposits in other banks   1.25 %     1.04 %     0.81 %     0.54 %     0.50 %   0.21     0.75    
Interest-earning assets   4.53 %     4.52 %     4.44 %     4.45 %     4.32 %   0.01     0.21    
                             
Interest-bearing deposits   0.93 %     0.88 %     0.78 %     0.74 %     0.70 %   0.05     0.23    
Borrowings   1.16 %     0.98 %     0.70 %     0.47 %     0.47 %   0.18     0.69    
Subordinated debentures   5.68 %     5.59 %     4.82 %     5.07 %     4.35 %   0.09     1.33    
Interest-bearing liabilities   1.11 %     1.06 %     0.82 %     0.76 %     0.71 %   0.05     0.40    
                             
Net interest margin (taxable equivalent basis)   3.79 %     3.81 %     3.89 %     3.96 %     3.86 %   -0.02     -0.07    
                             
Cost of deposits   0.66 %     0.62 %     0.54 %     0.50 %     0.47 %   0.04     0.19    
                             
(1)  Includes loans held for sale.                            
(2)  Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.                    
                             

For the third quarter of 2017, Hanmi recorded a provision for loan losses of $0.3 million compared with $0.4 million for the preceding quarter.

Third quarter noninterest income decreased 9.1% to $8.8 million from $9.7 million for the second quarter of 2017 primarily due to a $0.7 million decrease in gain on sales of securities and a $0.6 million decrease in other operating income offset by a $0.4 million increase in disposition gains on PCI loans. Included in other income is income from the early pay-off of leases which was $0.6 million lower in the third quarter. Gains on sales of SBA loans were $2.5 million for the third quarter 2017, down from $2.7 million from the second quarter of 2017 as the volume of SBA loans sold increased to $32.5 million from $32.4 million for the preceding quarter. Gains on the sales of securities were $0.3 million for the third quarter of 2017, down from $0.9 million in the second quarter. Disposition gains on PCI loans were $1.0 million for the third quarter of 2017, compared with $0.5 million for the prior quarter. PCI loans from the 2014 acquisition were $8.7 million at the end of the third quarter of 2017, down 0.9% from the prior quarter.

                             
   For the Three Months Ended (in thousands)    Percentage Change  
  Sep 30,   Jun 30,   Mar 31,   Dec 31,   Sep 30,   Q3-17   Q3-17  
Noninterest Income 2017   2017   2017   2016   2016   vs. Q2-17   vs. Q3-16  
Service charges on deposit accounts $   2,678   $   2,461   $   2,528   $   2,599   $   2,883   8.8 %   -7.1 %  
Trade finance and other service charges and fees        1,133       1,269       1,047       1,132       992   -10.7 %   14.2 %  
Other operating income     1,213       1,826       1,726       991       2,348   -33.6 %   -48.3 %  
Service charges, fees & other     5,024       5,556       5,301       4,722       6,223   -9.6 %   -19.3 %  
                             
Gain on sale of SBA loans     2,546       2,668       1,464       1,787       1,616   -4.6 %   57.5 %  
Disposition gain on PCI loans     979       540       183       1,559       789   81.3 %   24.1 %  
Net gain on sales of securities     267       938       269       –        46   -71.5 %   480.4 %  
Total noninterest income $   8,816   $   9,702   $   7,217   $   8,068   $   8,674   -9.1 %   1.6 %  
                             

Noninterest expense for the third quarter decreased 1.0% to $0.3 million to $28.7 million from $28.9 million for the second quarter primarily due to a $0.5 million decrease in OREO expense. As a result of the increase in revenue from the growth in earning assets and the decrease in noninterest expense, the efficiency ratio improved to 53.3% in the third quarter from 54.7% in the prior quarter.

To further enhance operational efficiencies, Hanmi consolidated two branch offices at the end of the third quarter in Beverly Hills and Torrance, California. 

Hanmi will also open a new branch office in New York City in the fourth quarter.

                             
   For the Three Months Ended (in thousands)    Percentage Change  
  Sep 30,   Jun 30,   Mar 31,   Dec 31,   Sep 30,   Q3-17   Q3-17  
  2017   2017   2017   2016   2016   vs. Q2-17   vs. Q3-16  
Noninterest Expense                            
Salaries and benefits $   16,947     $   16,623     $   17,104     $   16,246     $   15,950   1.9 %   6.3 %  
Occupancy and equipment     3,883         3,878         3,982         3,641         3,917   0.1 %   -0.9 %  
Data processing     1,779         1,738         1,631         1,455         1,330   2.4 %   33.8 %  
Professional fees     1,210         1,554         1,148         1,311         1,090   -22.1 %   11.0 %  
Supplies and communication     755         745         635         683         821   1.3 %   -8.0 %  
Advertising and promotion     1,147         1,015         802         1,140         1,153   13.0 %   -0.5 %  
Other operating expenses     2,955         2,881         2,070         1,825         4,003   2.6 %   -26.2 %  
subtotal     28,676         28,434         27,372         26,301         28,264   0.9 %   1.5 %  
                             
OREO expense (income)     (16 )       519         (101 )       (658 )       73   -103.1 %   -121.9 %  
Merger and integration costs     –          (9 )       (31 )       312         –    -100.0 %   0.0 %  
Total noninterest expense    $   28,660     $   28,944     $   27,240     $   25,955     $   28,337   -1.0 %   1.1 %  
                             

Hanmi recorded a provision for income taxes of $9.9 million for the third quarter of 2017, representing an effective tax rate of 39.9%, compared with $9.1 million, representing an effective tax rate of 38.5%, for the preceding quarter.

Financial Position
Total assets were $5.11 billion at September 30, 2017, a 2.8% increase from $4.97 billion at June 30, 2017. The increase in total assets was primarily due to an increase in loans and leases receivable.

Loans and leases receivable, before the allowance for loan and lease losses, were $4.20 billion at September 30, 2017, up 3.0% from $4.07 billion at June 30, 2017. The increase in loans and leases from the prior quarter reflects Hanmi’s continued strong loan production. Loans held for sale, representing the guaranteed portion of SBA loans, were $6.5 million at September 30, 2017 compared with $10.9 million at the end of the 2017 second quarter.

Loans and leases receivable, before the allowance for loan and lease losses, increased 18.1% from $3.55 billion for the third quarter last year, primarily due to strong loan production over the last twelve months, as well as last year’s fourth quarter acquisition and commencement of the Commercial Equipment Leasing division.

                             
   As of (in thousands)    Percentage Change  
  Sep 30,   Jun 30,   Mar 31,   Dec 31,   Sep 30,   Q3-17   Q3-17  
  2017   2017   2017   2016   2016   vs. Q2-17   vs. Q3-16  
Loan and Lease Portfolio                            
Commercial real estate loans $   3,108,931   $   3,068,069   $   2,991,123   $   2,939,608   $   2,880,012   1.3 %   7.9 %  
Residential real estate loans     430,627       384,044       359,152       338,767       330,675   12.1 %   30.2 %  
Commercial and industrial loans     364,456       346,150       316,284       300,220       319,656   5.3 %   14.0 %  
Lease receivable     272,271       257,525       259,591       243,294       –    5.7 %   NM    
Consumer loans     19,070       17,274       17,801       22,880       22,316   10.4 %   -14.5 %  
Loans and leases receivable      4,195,355     4,073,062     3,943,951     3,844,769     3,552,659   3.0 %   18.1 %  
Loans held for sale     6,469       10,949       8,849       9,316       6,425   -40.9 %   0.7 %  
Total loans $   4,201,824   $   4,084,011   $   3,952,800   $   3,854,085   $   3,559,084   2.9 %   18.1 %  
                             
Acquired Loans(1)                            
PCI loans, net of discounts $   8,704   $   8,784   $   8,960   $   9,863   $   15,540   -0.9 %   -44.0 %  
Non-PCI loans, net of discounts     91,013       96,600       101,062       104,733       108,434   -5.8 %   -16.1 %  
Total acquired loans $   99,717   $   105,384   $   110,022   $   114,596   $   123,974   -5.4 %   -19.6 %  
                             
(1)  Includes UCB acquired only.                            
                             

New loan production for the 2017 third quarter was $220.4 million while payoffs and amortization was $145.4 million compared with $279.0 million and $131.4 million for the second quarter of 2017. Third quarter 2017 new loan production was comprised of $91.2 million of commercial real estate loans, $43.8 million of commercial and industrial loans, $43.0 million of SBA loans, $39.5 million of commercial leases and $2.8 million of consumer loans. Loan purchases for the 2017 third quarter were $88.2 million, compared with $39.4 million in the second quarter of 2017. For the third quarter of 2017, commercial real estate loans as a percentage of total loans and leases decreased to 74.1% compared with 81.1% for the same period last year.

Deposits increased to $4.30 billion at the end of the 2017 third quarter from $4.26 billion at the end of the preceding quarter. Demand non-interest bearing deposits led this growth increasing 2.6%. The loans to deposits ratio at September 30, 2017 increased to 97.6% from 95.6% at June 30, 2017.

Deposits increased 14.0% from $3.77 billion in the third quarter last year, primarily due to the strength of Hanmi’s retail branch network as money market and savings deposits and time deposits increased 23.5% and 14.8%, respectively from a year ago.

                             
   As of (in thousands)    Percentage Change  
  Sep 30,   Jun 30,   Mar 31,   Dec 31,   Sep 30,   Q3-17   Q3-17  
  2017   2017   2017   2016   2016   vs. Q2-17   vs. Q3-16  
Deposit Portfolio                            
Demand: noninterest-bearing $   1,293,538   $   1,260,929   $   1,241,272   $   1,203,240   $   1,231,967   2.6 %   5.0 %  
Demand: interest-bearing     90,734       93,390       99,433       96,856       94,272   -2.8 %   -3.8 %  
Money market and savings     1,534,457       1,528,127       1,534,578       1,329,324       1,242,502   0.4 %   23.5 %  
Time deposits of $250,000 or less     949,826       916,197       731,445       734,383       819,471   3.7 %   15.9 %  
Time deposits of more than $250,000      430,455       460,530       476,437       445,934       382,995   -6.5 %   12.4 %  
Total deposits $   4,299,010   $   4,259,173   $   4,083,165   $   3,809,737   $   3,771,207   0.9 %   14.0 %  
                             

At September 30, 2017, stockholders’ equity was $559.2 million, compared with $550.1 million at June 30, 2017. Tangible common stockholders’ equity was $546.6 million, or 10.72% of tangible assets, compared with $537.4 million, or 10.83% of tangible assets at June 30, 2017. Tangible book value per share was $16.86, compared to $16.59 in the second quarter.

Hanmi continues to be well capitalized, with a preliminary Tier 1 risk-based capital ratio of 12.46% and a Total risk-based capital ratio of 15.46% at September 30, 2017, versus 12.58% and 15.69%, respectively, at June 30, 2017.

                             
   As of    Amount Change  
  Sep 30,   Jun 30,   Mar 31,   Dec 31,   Sep 30,   Q3-17   Q3-17  
  2017   2017   2017   2016   2016   vs. Q2-17   vs. Q3-16  
Regulatory Capital ratios (1)                            
Hanmi Financial                            
Total risk-based capital 15.46 %   15.69 %   16.16 %   13.86 %   14.99 %   -0.23   0.47  
Tier 1 risk-based capital 12.46 %   12.58 %   12.93 %   13.02 %   13.89 %   -0.12   -1.43  
Common equity tier 1 capital 12.11 %   12.22 %   12.56 %   12.73 %   13.73 %   -0.11   -1.62  
Tier 1 leverage capital ratio 10.92 %   11.08 %   11.21 %   11.53 %   11.68 %   -0.16   -0.76  
Hanmi Bank                            
Total risk-based capital 15.30 %   15.44 %   15.91 %   13.64 %   14.61 %   -0.14   0.69  
Tier 1 risk-based capital 14.54 %   14.62 %   15.07 %   12.80 %   13.50 %   -0.08   1.04  
Common equity tier 1 capital 14.54 %   14.62 %   15.07 %   12.80 %   13.50 %   -0.08   1.04  
Tier 1 leverage capital ratio 12.73 %   12.89 %   13.08 %   11.33 %   11.36 %   -0.16   1.37  
                             
(1)  Preliminary ratios for September 30, 2017                            
                             

Hanmi declared a cash dividend of $0.21 per common share on its common stock in the 2017 third quarter, up 11% from the prior quarter. The dividend was paid on August 16, 2017, to stockholders of record as of the close of business on July 28, 2017.

Asset Quality
Nonperforming loans, excluding PCI loans, were $14.6 million at the end of the third quarter of 2017, or 0.35% of loans, compared with $16.5 million at the end of the second quarter of 2017, or 0.41% of loans. Loans past due 30 to 89 days and still accruing declined significantly to 0.12% of loans at the end of the third quarter of 2017, compared with 0.23% of loans at the end of the second quarter.

OREO was $1.9 million at the end of the third quarter of 2017, down from $4.3 million at the end of the prior quarter reflecting the sale of a $2.4 million property. Nonperforming assets were $16.5 million at the end of the third quarter of 2017, or 0.32% of assets, compared with 0.42% of assets at the end of the prior quarter.

Gross charge-offs for the third quarter of 2017 were $2.4 million compared with $665,000 for the preceding quarter. Gross-charge-offs included a $1.3 million charge-off of a commercial and industrial loan. Recoveries of previously charged-off loans for the third quarter of 2017 were $871,000 compared with $849,000 for the preceding quarter. As a result, there were net charge-offs of $1.5 million for the third quarter of 2017, compared to net recoveries of $184,000 for the preceding quarter.

The allowance for loan and lease losses was $32.5 million as of September 30, 2017, generating an allowance of loan losses to loans receivable ratio of 0.77% compared with 0.83% as of June 30, 2017.

                             
   As of or for the Three Months Ended (in thousands)    Amount Change  
  Sep 30,   Jun 30,   Mar 31,   Dec 31,   Sep 30,   Q3-17   Q3-17  
  2017   2017   2017   2016   2016   vs. Q2-17   vs. Q3-16  
Asset Quality                            
Nonperforming assets (1):                            
Nonaccrual loans $   14,558     $   16,464     $   12,774     $   11,406     $   10,948     $   (1,906 )   $   3,610    
Loans 90 days or more past due and still accruing     –         –         –         –         –         –          –     
Nonperforming loans     14,558         16,464         12,774         11,406         10,948         (1,906 )       3,610    
OREO, net     1,946         4,321         4,636         7,484         10,971         (2,375 )       (9,025 )  
Nonperforming assets $   16,504     $   20,785     $   17,410     $   18,890     $   21,919     $   (4,281 )   $   (5,415 )  
                             
Delinquent loans:                            
Loans, 30 to 89 days past due and still accruing $   4,993     $   9,431     $   6,273     $   5,718     $   1,066     $   (4,438 )   $   3,927    
Delinquent loans to loans   0.12 %     0.23 %     0.16 %     0.15 %     0.03 %       (0.11 )       0.09    
                             
Allowance for loan and lease losses:                            
Balance at beginning of period $   33,758     $   33,152     $   32,429     $   38,972     $   39,707            
Loan and lease loss provision (income)     269         422         (80 )       151         (1,450 )          
Net loan charge-offs (recoveries)     1,535         (184 )       (803 )       6,694         (715 )          
Balance at end of period $   32,492     $   33,758     $   33,152     $   32,429     $   38,972            
                             
Asset quality ratios:                            
Nonperforming loans to loans (1)   0.35 %     0.41 %     0.32 %     0.30 %     0.31 %          
Nonperforming assets to assets (1)   0.32 %     0.42 %     0.36 %     0.40 %     0.50 %          
Net loan charge-offs (recoveries) to average loans (3)   0.15 %     -0.02 %     -0.08 %     0.73 %     -0.08 %          
Allowance for loan losses to loans   0.77 %     0.83 %     0.84 %     0.84 %     1.10 %          
Allowance for loan losses to nonperforming loans (1) (2)   217.74 %     200.67 %     252.54 %     275.80 %     305.43 %          
                             
Allowance for off-balance sheet items:                            
Balance at beginning of period $   1,135     $   1,184     $   1,184     $   1,491     $   1,475            
Provision (income) for off-balance sheet items     (220 )       (49 )       –          (307 )       16            
Balance at end of period $   915     $   1,135     $   1,184     $   1,184     $   1,491            
                             
(1)  Excludes PCI loans                            
(2)  Excludes allowance for loan losses allocated to PCI loans                          
(3)  Annualized                            

Conference Call
Management will host a conference call today, October 17, 2017 at 2:00 p.m. PT (5:00 p.m. ET) to discuss these results. This call will also be broadcast live via the internet. Investment professionals and all current and prospective stockholders are invited to access the live call by dialing 1-877-407-9039 before 2:00 p.m. PT, using access code HANMI. To listen to the call online, either live or archived, visit the Investor Relations page of Hanmi’s website at www.hanmi.com.

About Hanmi Financial Corporation
Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 39 full-service branches and 6 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. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. 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 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 plans, strategic alternatives for a possible business combination, merger or sale transaction, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statement. These factors include the following: failure to maintain adequate levels of capital and liquidity to support our operations; the effect of potential future supervisory action against us or Hanmi Bank; general economic and business conditions internationally, nationally and in those areas in which we operate; volatility and deterioration in the credit and equity markets; changes in consumer spending, borrowing and savings habits; availability of capital from private and government sources; demographic changes; competition for loans and deposits and failure to attract or retain loans and deposits; fluctuations in interest rates and a decline in the level of our interest rate spread; risks of natural disasters related to our real estate portfolio; risks associated with Small Business Administration loans; failure to attract or retain key employees; changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums; ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests; ability to identify a suitable strategic partner or to consummate a strategic transaction; adequacy of our allowance for loan and lease losses; credit quality and the effect of credit quality on our provision for loan and lease losses and allowance for loan and lease losses; changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements; our ability to control expenses; and changes in securities markets. 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, 2016, 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

Richard Pimentel
Senior Vice President & Corporate Finance Officer
213-427-3191

Lasse Glassen
Investor Relations
Addo Investor Relations
310-829-5400

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

                     
  Sep 30,   Jun 30,   Percentage   Sep 30,   Percentage  
  2017   2017   Change   2016   Change  
Assets                    
Cash and due from banks $   138,139     $   138,507     -0.3 %   $   130,197     6.1 %  
Securities available for sale, at fair value     598,440         571,846     4.7 %       548,961     9.0 %  
Loans held for sale, at the lower of cost or fair value     6,469         10,949     -40.9 %       6,425     0.7 %  
Loans and leases receivable, net of allowance for loan and lease losses        4,162,863         4,039,304     3.1 %       3,513,687     18.5 %  
Accrued interest receivable     12,098         11,167     8.3 %       10,160     19.1 %  
Customers’ liability on acceptances     647         1,481     -56.3 %       1,041     -37.8 %  
Servicing assets     10,428         10,480     -0.5 %       10,833     -3.7 %  
Premises and equipment, net     26,648         26,869     -0.8 %       27,682     -3.7 %  
Goodwill and other intangible assets, net     12,628         12,712     -0.7 %       1,456     767.3 %  
Federal Home Loan Bank (“FHLB”) stock, at cost     16,385         16,385     0.0 %       16,385     0.0 %  
Other real estate owned (“OREO”), net     1,946         4,321     -55.0 %       10,971     -82.3 %  
Income tax asset     46,210         50,286     -8.1 %       50,145     -7.8 %  
Bank-owned life insurance     50,268         49,982     0.6 %       49,149     2.3 %  
Prepaid expenses and other assets     28,227         29,057     -2.9 %       25,088     12.5 %  
Total assets $    5,111,396     $    4,973,346     2.8 %   $    4,402,180     16.1 %  
                     
Liabilities and Stockholders’ Equity                    
Liabilities:                    
Deposits:                    
Noninterest-bearing $   1,293,538     $   1,260,929     2.6 %   $   1,231,967     5.0 %  
Interest-bearing     3,005,472         2,998,244     0.2 %       2,539,240     18.4 %  
Total deposits     4,299,010         4,259,173     0.9 %       3,771,207     14.0 %  
Accrued interest payable     4,071         3,432     18.6 %       2,444     66.6 %  
Bank’s liability on acceptances     657         1,481     -55.6 %       1,041     -36.9 %  
FHLB advances     110,000         20,000     450.0 %       55,000     100.0 %  
Subordinated debentures     117,140         117,011     0.1 %       18,888     520.2 %  
Accrued expenses and other liabilities     21,271         22,109     -3.8 %       22,402     -5.0 %  
Total liabilities     4,552,149         4,423,206     2.9 %       3,870,982     17.6 %  
                     
Stockholders’ equity:                    
Common stock     33         33     0.0 %       33     0.0 %  
Additional paid-in capital     564,787         563,948     0.1 %       560,906     0.7 %  
Accumulated other comprehensive income     290         137     111.7 %       7,555     -96.2 %  
Retained earnings     65,858         57,717     14.1 %       33,413     97.1 %  
Less treasury stock     (71,721 )       (71,695 )   0.0 %       (70,709 )   1.4 %  
Total stockholders’ equity     559,247         550,140     1.7 %       531,198     5.3 %  
Total liabilities and stockholders’ equity $    5,111,396     $    4,973,346     2.8 %   $    4,402,180     16.1 %  
                     

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

                     
   Three Months Ended   
  Sep 30,   Jun 30,    Percentage    Sep 30,    Percentage   
  2017   2017   Change   2016   Change  
Interest and dividend income:                    
Interest and fees on loans and leases $   50,265     $   47,971     4.8 %   $   41,150     22.2 %  
Interest on securities     3,188         2,949     8.1 %       2,701     18.0 %  
Dividends on FRB and FHLB stock     286         283     1.1 %       419     -31.7 %  
Interest on deposits in other banks     123         123     0.0 %       55     123.6 %  
Total interest and dividend income     53,862         51,326     4.9 %       44,325     21.5 %  
Interest expense:                    
Interest on deposits     7,071         6,463     9.4 %       4,358     62.3 %  
Interest on FHLB advances     198         49     304.1 %       179     10.6 %  
Interest on subordinated debentures     1,667         1,636     1.9 %       206     709.2 %  
Total interest expense     8,936         8,148     9.7 %       4,743     88.4 %  
Net interest income before provision for loan and lease losses     44,926         43,178     4.0 %       39,582     13.5 %  
Loan and lease loss provision (income)     269         422     -36.3 %       (1,450 )   -118.6 %  
Net interest income after provision for loan and lease losses     44,657         42,756     4.4 %       41,032     8.8 %  
Noninterest income:                    
Service charges on deposit accounts     2,678         2,461     8.8 %       2,883     -7.1 %  
Trade finance and other service charges and fees     1,133         1,269     -10.7 %       992     14.2 %  
Gain on sale of Small Business Administration (“SBA”) loans     2,546         2,668     -4.6 %       1,616     57.5 %  
Disposition gains on Purchased Credit Impaired (“PCI”) loans     979         540     81.3 %       789     24.1 %  
Net gain on sales of securities     267         938     -71.5 %       46     480.4 %  
Other operating income     1,213         1,826     -33.6 %       2,348     -48.3 %  
Total noninterest income     8,816         9,702     -9.1 %       8,674     1.6 %  
Noninterest expense:                    
Salaries and employee benefits     16,947         16,623     1.9 %       15,950     6.3 %  
Occupancy and equipment     3,883         3,878     0.1 %       3,917     -0.9 %  
Data processing     1,779         1,738     2.4 %       1,330     33.8 %  
Professional fees     1,210         1,554     -22.1 %       1,090     11.0 %  
Supplies and communications     755         745     1.3 %       821     -8.0 %  
Advertising and promotion     1,147         1,015     13.0 %       1,153     -0.5 %  
OREO expense (income)     (16 )       519     -103.1 %       73     -121.9 %  
Merger and integration costs     –         (9 )   -100.0 %       –        
Other operating expenses     2,955         2,881     2.6 %       4,003     -26.2 %  
Total noninterest expense     28,660         28,944     -1.0 %       28,337     1.1 %  
Income before provision for income taxes     24,813         23,514     5.5 %       21,369     16.1 %  
Income tax expense     9,890         9,057     9.2 %       8,248     19.9 % `
Net income $    14,923     $    14,457     3.2 %   $    13,121     13.7 %  
                       
Basic earnings per share: $   0.46     $   0.45         $   0.41        
Diluted earnings per share: $   0.46     $   0.45         $   0.41        
                     
Weighted-average shares outstanding:                    
Basic     32,095,286         32,078,038             31,912,470        
Diluted     32,260,282         32,243,034             32,088,233        
Common shares outstanding     32,413,082         32,393,856             32,252,774        
                     


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

     
   Nine Months Ended   
  Sep 30,   Sep 30,    Percentage   
  2017   2016   Change  
Interest and dividend income:            
Interest and fees on loans and leases $   143,614     $   120,862     18.8 %  
Interest on securities     8,657         8,604     0.6 %  
Dividends on FRB and FHLB stock     943         1,540     -38.8 %  
Interest on deposits in other banks     323         152     112.5 %  
Total interest and dividend income     153,537         131,158     17.1 %  
Interest expense:            
Interest on deposits     18,687         11,769     58.8 %  
Interest on FHLB advances     714         673     6.1 %  
Interest on subordinated debentures     3,677         584     529.6 %  
Total interest expense     23,078         13,026     77.2 %  
Net interest income before provision for loan and leas losses     130,459         118,132     10.4 %  
Loan and lease loss provision (income)     611         (4,490 )   -113.6 %  
Net interest income after provision for loan and lease losses     129,848         122,622     5.9 %  
Noninterest income:            
Service charges on deposit accounts     7,667         8,782     -12.7 %  
Trade finance and other service charges and fees     3,449         3,099     11.3 %  
Gain on sale of Small Business Administration (“SBA”) loans     6,678         4,247     57.2 %  
Net gain on sales of securities     1,473         46     3102.2 %  
Disposition gains on Purchased Credit Impaired (“PCI”) loans        1,702         3,411     -50.1 %  
Other operating income     4,764         5,423     -12.2 %  
Total noninterest income     25,733         25,008     2.9 %  
Noninterest expense:            
Salaries and employee benefits     50,674         47,710     6.2 %  
Occupancy and equipment     11,743         11,351     3.5 %  
Data processing     5,148         4,219     22.0 %  
Professional fees     3,912         4,063     -3.7 %  
Supplies and communications     2,135         2,266     -5.8 %  
Advertising and promotion     2,964         2,769     7.0 %  
OREO expense (income)     402         721     -44.2 %  
Merger and integration costs     (40 )       –        
Other operating expenses     7,905         9,170     -13.8 %  
Total noninterest expense     84,843         82,269     3.1 %  
Income before provision for income taxes     70,738         65,361     8.2 %  
Income tax expense     27,576         23,288     18.4 %  
Net income $    43,162     $    42,073     2.6 %  
               
Basic earnings per share: $   1.34     $   1.31        
Diluted earnings per share $   1.33     $   1.31        
             
Weighted-average shares outstanding:            
Basic     32,058,705         31,880,466        
Diluted     32,235,263         32,031,295        
Common shares outstanding     32,413,082         32,252,774        
             

Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
(In thousands, except ratios)

                         
  Three Months Ended  
  September 30, 2017   June 30, 2017   September 30, 2016  
    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 and leases receivable (1) $   4,092,131   $   50,265 4.87 %   $   3,951,934   $   47,971 4.87 %   $   3,477,428   $   41,150 4.71 %  
Securities (2)     611,538       3,683 2.41 %       585,384       3,444 2.35 %       589,832       3,210 2.18 %  
FRB and FHLB stock     16,385       286 6.93 %       16,385       283 6.93 %       19,207       419 8.73 %  
Interest-bearing deposits in other banks     38,981       123 1.25 %       47,402       123 1.04 %       43,678       55 0.50 %  
Total interest-earning assets     4,759,035       54,357 4.53 %       4,601,105       51,821 4.52 %       4,130,145       44,834 4.32 %  
                         
Noninterest-earning assets:                        
Cash and due from banks     114,108             116,750             116,779        
Allowance for loan losses     (34,252 )           (33,540 )           (40,214 )      
Other assets     188,813             191,158             190,993        

Total assets
$   5,027,704         $   4,875,473         $   4,397,703        
                         
Liabilities and Stockholders’ Equity                        
Interest-bearing liabilities:                        
Deposits:                        
Demand: interest-bearing $   90,720   $   18 0.08 %   $   93,873   $   18 0.08 %   $   93,852   $   19 0.08 %  
Money market and savings     1,526,951       3,311 0.86 %       1,532,733       3,224 0.84 %       1,141,747       1,834 0.64 %  
Time deposits     1,384,724       3,742 1.07 %       1,320,005       3,221 0.98 %       1,244,127       2,505 0.80 %  
Total interest-bearing deposits     3,002,395       7,071 0.93 %       2,946,611       6,463 0.88 %       2,479,726       4,358 0.70 %  
FHLB advances     67,935       198 1.16 %       20,000       49 0.98 %       152,935       179 0.47 %  
Subordinated debentures     117,065       1,667 5.68 %       116,850       1,636 5.59 %       18,844       206 4.35 %  
Total interest-bearing liabilities     3,187,395       8,936 1.11 %       3,083,461       8,148 1.06 %       2,651,505       4,743 0.71 %  
                         
Noninterest-bearing liabilities:                        
Demand deposits: noninterest-bearing     1,257,954             1,219,876             1,189,693        
Other liabilities     30,592             27,853             27,924        
Stockholders’ equity     551,763             544,283             528,581        

Total liabilities and stockholders’ equity   
$   5,027,704         $   4,875,473         $   4,397,703        
                         
Net interest income (2)   $    45,421       $    43,673       $   40,091    
                         
Cost of deposits     0.66 %       0.62 %       0.47 %  
Net interest spread (2)     3.42 %       3.46 %       3.61 %  
Net interest margin (2)     3.79 %       3.81 %       3.86 %  
                         
                         
                         
(1)   Includes loans held for sale                        
(2)   Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.            
                         

 

Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
(In thousands, except ratios)

                 
  Nine Months Ended  
  September 30, 2017   September 30, 2016  
    Interest   Average      Interest   Average   
  Average Income / Yield /   Average Income / Yield /  
  Balance Expense Rate   Balance Expense Rate  
Assets                
Interest-earning assets:                
Loans and leases receivable (1) $   3,976,021   $   143,614 4.83 %   $   3,333,420   $   120,862 4.84 %  
Securities (2)     574,801       10,153 2.36 %       643,125       10,136 2.10 %  
FRB and FHLB stock     16,385       943 7.69 %       26,809       1,540 7.67 %  
Interest-bearing deposits in other banks     41,663       323 1.04 %       42,127       152 0.48 %  
Total interest-earning assets     4,608,870       155,033 4.50 %       4,045,481       132,690 4.38 %  
                 
Noninterest-earning assets:                
Cash and due from banks     116,206             115,235        
Allowance for loan losses     (33,550 )           (41,401 )      
Other assets     190,001             195,747        
Total assets $   4,881,527         $   4,315,062        
                 
Liabilities and Stockholders’ Equity                
Interest-bearing liabilities:                
Deposits:                
Demand: interest-bearing $   94,040   $   56 0.08 %   $   95,264   $   56 0.08 %  
Money market and savings     1,489,302       9,200 0.83 %       996,578       4,130 0.55 %  
Time deposits     1,293,412       9,431 0.97 %       1,286,120       7,583 0.79 %  
Total interest-bearing deposits     2,876,754       18,687 0.87 %       2,377,962       11,769 0.66 %  
FHLB advances     118,736       714 0.80 %       204,106       673 0.44 %  
Subordinated debentures     88,604       3,677 5.52 %       18,783       584 4.09 %  
Total interest-bearing liabilities     3,084,094       23,078 1.00 %       2,600,851       13,026 0.67 %  
                 
Noninterest-bearing liabilities:                
Demand deposits: noninterest-bearing     1,224,886             1,166,427        
Other liabilities     29,044             32,381        
                 
Stockholders’ equity     543,503             515,403        
Total liabilities and stockholders’ equity    $   4,881,527         $   4,315,062        
                 
Net interest income (2)   $    131,955       $    119,664    
                 
Cost of deposits     0.61 %       0.44 %  
Net interest spread (2)     3.50 %       3.71 %  
Net interest margin (2)     3.83 %       3.95 %  
                 
                 
(1)   Includes loans held for sale                
(2)   Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.    
     

Non-GAAP Financial Measures

Acquisition Accounting

Core loan yield, core deposit costs, net interest income and net interest margin excluding acquisition accounting are 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 results of operations. The calculation of these measures is illustrated below. 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 results of Hanmi. This disclosure should not be viewed as a substitution 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:

                                       
   For the Three Months Ended                     
   September 30,       June 30,    March 31,   December 31,   September 30,                    
  2017   2017   2017   2016   2016                    
Core loan yield   4.84 %   4.82 %     4.68 %   4.63 %     4.63 %                    
Accretion of discount on purchased loans   0.03 %   0.05 %     0.06 %   0.09 %     0.08 %                    
As reported   4.87 %   4.87 %     4.74 %   4.72 %     4.71 %                    
                                       
Core deposit cost   0.67 %   0.63 %     0.55 %   0.54 %     0.54 %                    
Accretion of time deposits premium   0.01 %   0.01 %     0.01 %   0.04 %     0.07 %                    
As reported   0.66 %   0.62 %     0.54 %   0.50 %     0.47 %                    
                                       
 
 
  For the Three Months Ended
  September 30, 2017   June 30, 2017   March 31, 2017     December 31, 2016       September 30, 2016   
   Amount     Rate     Amount     Rate     Amount     Rate     Amount     Rate     Amount     Rate 
Net interest income and net interest margin
excluding acquisition accounting
(1)
$    45,049     3.76 %   $    43,129     3.76 %   $    42,230     3.84 %   $    41,489     3.86 %   $    38,874     3.75 %
Accretion of discount on Non-PCI loans     303     0.03 %       457     0.04 %       527     0.05 %       781     0.07 %       648     0.06 %
Accretion of discount on PCI loans     38     0.00 %       52     0.00 %       54     0.00 %       78     0.01 %       26     0.00 %
Accretion of time deposits premium     116     0.01 %       116     0.01 %       126     0.01 %       314     0.03 %       610     0.06 %
Amortization of subordinated debentures discount     (85 )   -0.01 %       (81 )   -0.01 %       (77 )   -0.01 %       (90 )   -0.01 %       (67 )   -0.01 %
Net impact     372     0.03 %       544     0.05 %       630     0.05 %       1,083     0.10 %       1,217     0.11 %
As reported, on a fully taxable equivalent basis (1) $    45,421     3.79 %   $    43,673     3.81 %   $    42,860     3.89 %   $    42,572     3.96 %   $    40,091     3.86 %
                                       
(1)   Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate:  rates may not sum due to rounding.                    
                                       

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 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 substitution 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)

                     
  September 30,   June 30,   March 31,   December 31,   September 30,  
Hanmi Financial Corporation 2017   2017   2017   2016   2016  
Assets $   5,111,396     $   4,973,346     $   4,811,821     $   4,701,346     $   4,402,180    
Less goodwill     (11,031 )       (11,031 )       (11,031 )       (11,031 )       –     
Less other intangible assets,net     (1,597 )       (1,681 )       (1,766 )       (1,858 )       (1,456 )  
Tangible assets $   5,098,768     $   4,960,634     $   4,799,024     $   4,688,457     $   4,400,724    
                     
Common Stockholders’ equity $   559,247     $   550,140     $   539,542     $   531,025     $   531,198    
Less goodwill     (11,031 )       (11,031 )       (11,031 )       (11,031 )       –    
Less other intangible assets     (1,597 )       (1,681 )       (1,766 )       (1,858 )       (1,456 )  
Tangible Common stockholders’ equity $   546,619     $   537,428     $   526,745     $   518,136     $   529,742    
                     
Common Stockholders’ equity to assets   10.94 %     11.06 %     11.21 %     11.30 %     12.07 %  
Tangible common equity to tangible assets   10.72 %     10.83 %     10.98 %     11.05 %     12.04 %  
                     
Common shares outstanding     32,413,082         32,393,856         32,392,580         32,330,747         32,252,774    
Tangible common equity per common share                          $   16.86     $   16.59     $   16.26     $   16.03     $   16.42