Hanmi Financial increases quarterly cash dividend by 67%


LOS ANGELES, October 28, 2021 (GLOBE NEWSWIRE) – Hanmi Financial Corporation (NASDAQ: HAFC) (“Hanmi”), the holding company of Hanmi Bank, today announced that its board of directors has declared a cash dividend on its common shares for the fourth quarter of 2021 of $ 0.20 per share, up from 67% compared to $ 0.12 per share in the prior quarter. The dividend will be paid on November 24, 2021 to shareholders of record at the close of business on November 8, 2021.

“I am very pleased to announce a 67% increase in our quarterly dividend,” said Bonnie Lee, President and CEO. “This is the third increase in our dividend this year. The dividend increase is well supported by the strong operating performance and excellent earnings growth we achieved in 2021 and reflects the confidence of our Board of Directors in our future prospects. “

About Hanmi Financial Corporation
Based in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multiethnic communities through its network of 35 full-service branches and 9 loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York , Colorado. , Washington and Georgia. Hanmi Bank specializes in real estate, business, SBA and trade finance loans to small and medium-sized businesses. Further 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 the purposes of of federal law. and state securities laws, including, but not limited to, statements about our future operating and financial performance, our financial condition and liquidity, our business strategies, our regulatory and competitive outlook, our business plans. ” investment and expenditure, our capital and financing needs and availability, our management plans and objectives for future operations, developments regarding our investment and strategic plans, and other forecasts and statements of expectations and similar assumptions underlying all of the above. In some cases, you can identify forward-looking statements by words such as “may”, “will”, “should”, “could”, “expect”, “expect”, “” estimate “,” predict ” , “Potential” or “continuing”, or the negative of these and other comparable terms. Although we believe our forward-looking statements are 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 forward-looking statements. These factors include the following:

  • a 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;

  • our ability to correct any material weaknesses in our internal controls over financial reporting;

  • general economic and commercial conditions at international and national level and in the fields in which we operate;

  • volatility and deterioration in credit and equity markets;

  • changes in consumption, borrowing and saving habits;

  • availability of capital from private and government sources;

  • Demographic changes;

  • competition for loans and deposits and the inability to attract or retain loans and deposits;

  • changes in interest rates and a decline in the level of our interest rate spread;

  • risks of natural disasters;

  • a failure or breach of our operational or security systems or infrastructure, including cyber attacks;

  • the inability to maintain current technologies;

  • our inability to successfully implement future improvements in information technology;

  • difficult business and economic conditions that can adversely affect our industry and operations, including the weak soundness of other financial institutions, fraudulent activity and negative publicity;

  • risks associated with Small Business Administration loans;

  • the inability to attract or retain key employees;

  • our ability to access profitable financing;

  • fluctuations in real estate values;

  • changes in accounting policies and practices;

  • changes in government regulations including, but not limited to, any increase in FDIC insurance premiums;

  • Hanmi Bank’s ability to make distributions to Hanmi Financial Corporation, which is limited by certain factors, including Hanmi Bank’s retained earnings, net income, past distributions made and certain other financial tests;

  • the adequacy of our allowance for bad debt;

  • our credit quality and the effect of credit quality on our allowance for bad debt and our allowance for bad debt;

  • the effect of our rating under the Community Reinvestment Act and our ability to resolve issues raised during our regulatory reviews;

  • changes in the financial performance and / or condition of our borrowers and the ability of our borrowers to function under the terms of their loans and other terms of credit agreements;

  • our ability to control spending;

  • changes in the securities markets; and

  • cybersecurity risks against our information technologies and those of our suppliers and third-party suppliers.

Additionally, given its ongoing and dynamic nature, it is difficult to predict the continued impact of the COVID-19 outbreak on our business. The extent of such an impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and mitigated and whether the continued reopening of businesses will lead to a significant increase in economic activity. As a result of the COVID-19 pandemic and its associated adverse local and national economic consequences, we may be exposed to any of the following risks, each of which could have a material adverse effect on our business, financial condition, liquidity and results of operations:

  • demand for our products and services may decline;

  • if the economy is unable to substantially reopen and higher unemployment levels continue for an extended period, loan defaults, problem assets and foreclosures may increase;

  • collateral for loans, especially real estate, may lose value, which could lead to increased loan losses;

  • our allowance for credit losses may need to be increased if borrowers experience financial difficulty;

  • a deterioration in business and economic conditions or in the financial markets could result in the impairment of certain intangible assets, such as goodwill or our management assets;

  • the equity and liquidity of loan guarantors may decline, compromising their ability to honor their commitments to us;

  • a significant decrease in net income or a net loss over several quarters could result in the elimination or decrease in the rate of our quarterly cash dividend;

  • litigation, regulatory risk and reputational risk relating to our participation in the Paycheck Protection Program and the risk that the Small Business Administration may not fund all or part of the PPP loan guarantees;

  • our cybersecurity risks are increased due to the increase in the number of employees working remotely;

  • FDIC premiums may increase if the agency incurs additional resolution fees; and

  • the unexpected loss or unavailability of key employees due to the outbreak, which could affect our ability to operate our business or execute our business strategy, especially since we may not be successful in finding and integrate appropriate replacements.

In addition, we have discussed certain risks in our reports filed with the United States Securities and Exchange Commission, including, section 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, our quarterly reports on Form 10-Q, and the current reports on Form 8-K that we will file below, which could cause actual and expected results to differ. We assume no obligation to update these forward-looking statements, except as required by law.

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

Lasse Glassen
Investor Relations
Investor Relations Addo
424-238-6249

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