In reporting a $5.2 million first-quarter loss it attributed to continuing credit trouble, Hanmi Financial Corp. of Los Angeles said Tuesday it has gone after deposits more aggressively than loans.
Jay S. Yoo, Hanmi's president and chief executive officer, called the results "disappointing," but cited the deposit growth as a highlight.
Deposits rose 4.1% from the fourth quarter and 5.6% from a year earlier, to $3.2 billion, because of a promotion over the past three months touting attractive rates. As a result, borrowings such as Federal Home Loan Bank advances decreased by roughly one-fourth from the previous quarter and a year earlier, to $312.8 million.
Hanmi's asset size was roughly flat with a year earlier and slipped 1.2% from the fourth quarter, to $3.9 billion. The company attributed the shrinkage to its active management of its balance sheet to deal with the prolonged economic weakness.
The provision for credit losses fell 2% from the fourth quarter but increased 40% from a year earlier, to $25 million.