Hanmi delays quarterly filing over review of nonaccrual loan
Hanmi Financial in Los Angeles has delayed the filing of its quarterly report as it evaluates the status of a big commercial loan.
The $5.6 billion-asset company disclosed on Monday that it is working with its auditor to determine the classification of a single $40.7 million credit relationship. The evaluation includes a $28 million construction loan and a $12.7 million business loan that were moved to nonaccrual status in the second quarter.
Hanmi warned that it could adjust its loan-loss allowance. The company also said it is looking into its internal controls tied to construction lending.
The company said on July 19 that it would postpone the release of second-quarter earnings after banking examiners flagged a credit relationship.
Hanmi said in Monday's filing that it expects to report net income of $17.4 million for the first half of 2019, which would reflect a $17.4 million loan-loss provision.
The company also said it expects to report a $49.4 million loan-loss allowance at June 30, which will include a $15.7 million specific reserve tied to the nonaccrual relationship.