Hanmi Financial Corp. in Los Angeles reported a fourth-quarter loss of $100 million after a goodwill impairment charge of $102.9 million and a higher loan-loss provision.
It had earned $17.3 million the year earlier.
The $4 billion-asset Hanmi said after the market closed Tuesday that the charge was due mostly to the declining value of goodwill from its purchase of the $1.1 billion-asset Pacific Union Bank of Los Angeles in April 2004.
Hanmi also increased its fourth-quarter loan-loss provision more than tenfold from a year earlier and more than double the previous quarter’s, to $20.7 million.
Other large one-time items included a $1.1 million impairment charge on a Community Reinvestment Act preferred security and $1.7 million in separation expenses for the retirement of its chief executive, Sung Won Sohn.
Chung Hoon Youk, who became the chief credit officer Jan. 2, is the interim president and CEO of the company and its Hanmi Bank.
For the full year, the company swung to a net loss of $60.5 million, from a profit of $65.6 million in 2006.
On Friday, Hanmi had warned investors in a Securities and Exchange Commission filing that it expected to report losses for the fourth quarter and full year. It said in the filing that it anticipated taking a goodwill impairment charge of at least $70 million.
