Hanmi Announces Closing of $ 110 Million Subordinated Debt Offer

LOS ANGELES, Aug 20, 2021 (GLOBE NEWSWIRE) – Hanmi Financial Corporation (NASDAQ: HAFC) (“Hanmi”), the holding company of Hanmi Bank, today announced the closing of its subscribed public offering for a total principal amount of $ 110 million of its 3.750% floating rate subordinated notes ( the “Notes”) due 2031. The Company intends to use the net proceeds of the offering of Notes for general corporate purposes, which may include refinancing activities, including repayment of all or a portion of the outstanding principal of our outstanding subordinated notes and subordinated debentures.

Piper Sandler & Co. and Keefe, Bruyette & Woods, Inc., A Stifel company, acted as co-managers of the book, while Janney Montgomery Scott LLC and Wedbush Securities Inc. acted as co-managers. Luse Gorman, PC acted as legal counsel to Hanmi and Holland & Knight LLP acted as legal counsel to the underwriters.

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 may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended ( the “Exchange Act”). All statements in this press release other than statements of historical fact are “forward-looking statements” for the purposes of federal and state securities laws, including, but not limited to, statements of operational and financial performance. expected futures, financial condition and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing requirements, management plans and objectives for future operations, and ” other predictions and similar statements of expectations and 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 that the expectations reflected in forward-looking statements are reasonable, we cannot guarantee future results, activity levels, performance or achievements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, strategies, outlook, needs, plans, objectives or achievements to differ from those expressed or under – understood by the forward-looking statement. These factors include the following: inability to maintain adequate levels of capital and liquidity to support our operations; the effect of potential future supervisory action against us or Hanmi Bank; the effect of our rating under the Community Reinvestment Act and our ability to resolve issues raised during our regulatory reviews; 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; inability to successfully implement future improvements in information technology; difficult business and economic conditions which can adversely affect our industry and operations, including competition, 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 impact the value of our borrowers’ products; changes in government regulations including, but not limited to, any increase in Federal Deposit Insurance Corporation 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; ability to identify an appropriate strategic partner or to complete a strategic transaction; the adequacy of our allowance for bad debt; credit quality and the effect of credit quality on our charge for credit losses and our allowance for credit losses; 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 IT infrastructure and those of our vendors and third party vendors.

Given the continuing and dynamic nature of the circumstances, it is difficult to predict the full 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 gradual 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 operating results: demand for our products and services may decline, making it difficult to grow assets and revenues; If the economy is unable to substantially reopen and high levels of unemployment persist for an extended period, defaults, problematic assets and foreclosures may increase, leading to increased burdens and reduced revenues ; collateral for loans, especially real estate, may lose value, which could lead to increased charges for credit losses; our allowance for credit losses may need to be increased if borrowers experience financial difficulty beyond the forbearance periods, which will adversely affect our net income; the equity and liquidity of loan guarantors may decline, compromising their ability to honor their commitments to us; As a result of the fall in the Federal Reserve’s target federal funds rate, the return on our assets may decline more than the decline in the cost of our interest-bearing liabilities, which reduces our net interest margin and spreads and reduces our net income; a significant decrease in net income or a net loss over several quarters could cause the rate of our quarterly cash dividend to decrease; our cybersecurity risks are increased due to the increase in the number of employees working remotely; we rely on third-party providers for certain services and the unavailability of a critical service due to the COVID-19 outbreak could have a negative effect on us; Federal Deposit Insurance Corporation premiums may increase if the agency incurs additional resolution fees; potential goodwill impairment charges could arise if the assets and operations acquired were adversely affected and remained at reduced levels; Due to recent legislation and government measures limiting the foreclosure of real estate and the reduced government capacity to conduct business transactions and property transfers, we may have more difficulty in taking possession of the collateral backing our loans, which could have a negative impact on our ability to minimize our losses, which could have a negative impact on our financial results; and we face litigation, regulatory enforcement and reputational risks as a result of our participation in the Paycheck Protection Program (“PPP”) and the risk that the Small Business Administration may not fund. all or part of the PPP loan guarantees. In addition, our future success and profitability depends in large part on the management skills of our senior executives and directors, many of whom have served in management and director positions with us for many years. The unexpected loss or unavailability of key employees due to the outbreak could affect our ability to operate our business or execute our business strategy. We may not be able to find and integrate suitable successors in the event of loss or unavailability of key employees.

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

Lasse Glassen
Investor Relations
Addo Investor Relations

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