Hanmi Financial Corp. confirmed Wednesday that it had applied for $105 million from the government’s $700 billion financial bailout program. The Korean-American bank also said it believes a recent sharp decline in its share price could be traced to a large investor having to cover a margin call.

Los Angeles-based Hanmi, which targets the Korean-American and other ethnic communities, said the amount it seeks represents 3 percent of the bank’s total risk-weighted assets as of the end of the third quarter.

Seven locally based financial institutions, including City National Corp., East West Bancorp and Center Financial Corp., have received approvals for investment under the U.S. Treasury Department’s Capital Purchase Program. The amounts approved have ranged from a high of $395 million to a low of $9 million. Unlike Hanmi, most of the banks have waited until the investment was approved before making an announcement.

“Although we remain well capitalized, we would welcome an investment under the CPP,” Chief Executive Jay S. Yoo said in a statement. “In enhancing our capital position, it would increase our ability to provide additional financing to the small and mid-sized businesses that are so essential to the American economy.”

The bank earlier this month agreed to a plan to strengthen and maintain a sufficient consolidated capital position, saying it won’t make any capital distribution without the consent of the Federal Reserve Bank of San Francisco.

Hanmi’s share price has dropped nearly 50 percent in the past week, dipping below the $2 mark on Tuesday. Yoo noted the bank generally did not comment on movements in the price of its stock, but felt compelled to because of the current market volatility.

“These extraordinary economic times call for extraordinary measures,” Yoo said. “We believe that a portion of the recent decline in the market price of Hanmi’s stock is attributable to sales of shares owned by a shareholder who, facing a margin call, is being forced to sell his substantial holdings in the company.”

Hanmi shares closed up 28 cents, or 14 percent, to $2.25 on the Nasdaq. Shares are 80 percent off a 52-week high set on Nov. 30, 2007.