Hanmi Financial increases quarterly cash dividend by 20%
LOS ANGELES, April 29, 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 second quarter of 2021 of $ 0.12 per share, up from 20% from $ 0.10 per share in the prior quarter. The dividend will be paid on May 27, 2021 to shareholders of record at the close of business on May 10, 2021.
“I am very pleased to announce the increase in our quarterly dividend for the second time this year,” said Bonnie Lee, President and CEO. “The new dividend, which reflects a 20% increase over the previous quarter, demonstrates the Board’s confidence in the Bank’s ability to generate profitable growth as we emerge from the pandemic and economic conditions continue to improve. ”
Hanmi’s board of directors will continue to monitor the financial performance of the company during the COVID-19 pandemic and will reassess the level of subsequent regular dividends on a quarterly basis going forward.
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. Additional information is available at www.hanmi.com.
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”. purposes of federal legislation. and state securities laws, including, but not limited to, statements on expected future operating and financial performance, financial condition and liquidity, business strategies, regulatory and competitive outlook, plans investment and expenditure, capital and financing needs and availability, management’s plans and objectives for future operations, developments in our capital and strategic plans, and other forecasts and statements of similar expectations and statements of assumptions underlying all of the above. In some cases, you can identify forward-looking statements by words such as “may”, “will”, “should”, “could”, “expects”, “anticipates”, “intends”, “anticipates”. “,” Believes, “” “believes,” “predicted”, “potential” or “continue”, or the negative of these and other comparable terms. Although we believe our forward-looking statements are reasonable, we cannot guarantee future results, activity levels, 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:
- the inability to maintain adequate levels of capital and liquidity to support our operations;
- the effect of potential future supervisory actions 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 the credit and equity markets;
- changes in consumption, borrowing and saving habits;
- the 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;
- the 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 which can adversely affect our industry and operations, including competition and insecurity from 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;
- the imposition of tariffs or other national or international government policies that affect the value of our borrowers’ products;
- 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 credit losses;
- our credit quality and the effect of credit quality on our allowance for loan losses and allowance for credit losses;
- changes in the financial performance and / or condition of our borrowers and the ability of our borrowers to perform the terms of their loans and other terms of credit agreements;
- our ability to control spending;
- changes in the securities markets; and
- cybersecurity risks with respect to our information technology and those of our suppliers and third party suppliers.
Additionally, given its continuous and dynamic nature, it is difficult to predict the full impact of the COVID-19 outbreak on our business. The magnitude of this 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 result in a significant increase in economic activity. As a result of the COVID-19 pandemic and the resulting negative local and national economic consequences, we may be subject to any of the following risks, any of which could have a material adverse effect on our business, financial condition , our cash flow and operating results:
- demand for our products and services may decline;
- if the economy fails to substantially reopen and high unemployment rates persist for an extended period, delinquencies on loans, problematic assets and foreclosures may increase;
- loan guarantees, 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 commercial and economic conditions or in the financial markets could lead to an 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 cause the rate of our quarterly cash dividend to decrease;
- 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 some or all of the PPP loan guarantees;
- our cybersecurity risks are increased due to an increase in the number of employees working remotely;
- FDIC premiums may increase if the agency incurs additional resolution costs; 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 set out certain risks in our reports filed with the United States Securities and Exchange Commission, including item 1A of our annual report on Form 10-K for the 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 results to differ from those projected. We assume no obligation to update these forward-looking statements, except as required by law.
Romolo (Ron) Santarosa
Senior Executive Vice President and Chief Financial Officer
Addo Investor Relations