Hanmi Financial Corp. late Thursday said that the Federal Reserve Bank of San Francisco has terminated three years of scrutiny of the Koreatown bank.
The Koreatown holding company for Hanmi Bank said the bank is no longer subject to ongoing enforcement actions or extra regulatory oversight. An agreement with the Federal Reserve Bank had been in place since November 2009. A similar agreement with the California Department of Financial Institutions, a state regulator, ended in October.
Hanmi has been working to shore up its capital based and rebuild since being hurt by loans that went bad during the recession and commercial real estate crisis
“This important step confirms that our efforts to improve our financial condition have been successful and we will continue to effectively manage our capital and credit,” Chief Executive Jay Wood said in a statement. “We are now a much stronger company and look forward to upcoming challenges and opportunities.”
The announcement was made just before the markets closed. Shares closed up 16 cents, or 1.3 percent, to $12.45 on the Nasdaq.