Hanmi Financial Corp., which is under regulators' orders to raise capital, said its losses widened in the fourth quarter after the bank holding company reserved $77 million to cover additional loan losses.
The parent of Koreatown’s Hanmi Bank late Thursday reported a fourth quarter net loss of $35.9 million (-70 cents per share) compared with a loss of $3.8 million (-8 cents) a year earlier.
Net interest income before provision for credit losses rose 7 percent to $28.4 million. Total non-interest income was up 4 percent $7.8 million.
Regulators in November ordered the bank to increase its capital by $100 million, and the company’s share price has roughly doubled this month amid rumors of a pending large infusion by South Korean investors or even a takeover by another bank. The company has declined comment on those reports.
"Our highest priority during the next few months will be to raise sufficient capital, executing our strategic plan to comply with regulatory requirements," said Chief Executive Jay S. Yoo in a statement.
For the full year, Hanmi lost $122 million (-$2.57 a share) as it took more than $196 million in provisions for losses during the year. That compares to a loss of $102 million (-$2.23 a share) in fiscal 2009. Net interest income before provision for credit losses fell nearly 25 percent to $33.2 million.
Shares closed down 5 cents, or 2.5 percent, to $1.99 on the Nasdaq.
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