HANMI FINANCIAL CORPORATION Item 2.02. Results of Operations and Financial Condition.
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This information set forth under "Item 2.02. Results of Operations and Financial Condition," including Exhibit 99.1 attached hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1 Press release issued byHanmi Financial datedJanuary 26, 2021 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) Forward-Looking Statements
This report 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 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:
? a failure to maintain adequate levels of capital and liquidity to support
our operations;
? the effect of potential future supervisory action against us or
? our ability to remediate any material weakness in our internal controls over
financial reporting;
? 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;
? a failure in or breach of our operational or security systems or
infrastructure, including cyberattacks;
? the failure to maintain current technologies;
? our inability to successfully implement future information technology
enhancements;
? difficult business and economic conditions that can adversely affect our
industry and business, including competition and lack of soundness of other
financial institutions, fraudulent activity and negative publicity;
? risks associated with
? failure to attract or retain key employees;
? our ability to access cost-effective funding;
? fluctuations in real estate values;
? changes in accounting policies and practices;
? the imposition of tariffs or other domestic or international governmental
policies impacting the value of the products of our borrowers;
? changes in governmental regulation, including, but not limited to, any
increase in FDIC insurance premiums;
? the 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;
? the adequacy of our allowance for credit losses;
? our credit quality and the effect of credit quality on our provision 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 under the terms of their loans and
other terms of credit agreements;
? our ability to control expenses;
? changes in securities markets; and
? risks as it relates to cyber security against our information technology and
those of our third-party providers and vendors.
Further, given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and whether the gradual reopening of businesses will result in a meaningful increase in economic activity. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any 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 high levels of
unemployment continue for an extended period of time, loan delinquencies,
problem assets, and foreclosures may increase;
? collateral for loans, especially real estate, may decline in value, which
could cause loan losses to increase;
? our allowance for credit losses may have to be increased if borrowers
experience financial difficulties;
? a worsening of business and economic conditions or in the financial markets
could result in an impairment of certain intangible assets, such as goodwill
or our servicing assets;
? the net worth and liquidity of loan guarantors may decline, impairing their
ability to honor commitments to us;
? as the result of the decline in the Federal Reserve Board's target federal
funds rate to near 0%, the yield on our assets may continue to decline to a
greater extent than the decline in our cost of interest-bearing liabilities;
? a material decrease in net income or a net loss over several quarters could
result in a decrease in the rate of our quarterly cash dividend;
? litigation, regulatory enforcement risk and reputation risk regarding our
participation in the Paycheck Protection Program and the risk that the Small
Business Administration may not fund some or all PPP loan guaranties;
? our cyber security risks are increased as the result of an increase in the
number of employees working remotely;
? FDIC premiums may increase if the agency experiences additional resolution
costs; and
? the unanticipated loss or unavailability of key employees due to the
outbreak, which could harm our ability to operate our business or execute
our business strategy, especially as we may not be successful in finding and
integrating suitable replacements.
In addition, we set forth certain risks in our reports filed with the
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