Hanmi Financial Corp. announced Tuesday that its net loss more than tripled, to $29.3 million, in the second quarter from a year earlier.
The Los Angeles parent company of Hanmi Bank posted a net loss of $29.3 million, or 57 cents a share, compared with $9.5 million, or 21 cents a share, a year earlier.
Hanmi said the loss was a result of setting aside an additional $37.5 million in provision for loan losses, up from $23.9 million a year earlier.
The company has been aggressively reducing its balance sheet in the past year, with a 25% decline in total assets, to $2.9 billion and a 21% drop in gross loans, to $2.5 billion. Hanmi also reduced its nonperforming loans from the first to second quarter nearly 8%, to $242.1 million. Nonperforming loans, however, rose 44.7% compared with the year-earlier quarter.
Hanmi just completed a $120 million capital-raising through a common stock and rights offering. It is seeking regulatory approval to raise additional capital through a deal in which Woori Finance Holdings Co. Ltd. would purchase up to $240 million of Hanmi's common stock.