HAFC
#No.
It was a really simple uneventful quarter as far as noise is concerned.
I don't think so.
I don't think that is the case.
In terms of loan to deposit at about 94%, that's at or near the optimum level for us.
We actually have source some borrowings from Federal Home Loan Bank rather than to promote a depository product because the rate was so low.
So we are pretty much there in terms of optimizing the leverage of the balance sheet at this point.
Basically in the last three quarters of this year.
It's a combination of additional advances and hopefully more growth in the DDAs and also money markets.
I don't expect any meaningful growth in our CD portfolio, but based on the relationship banking formula that we have been practicing here, we expect that the deposits on the DDA and the money markets will continue to grow, and on an opportunistic basis, there's a way to take some money down from FHLB, we will do so.
Well, this is the same program that we've been on for the last year to year and a half.
And we purchased it from the same vendor, same profile.
Loan to value is around 50% to 55%.
Debt ratio is 40 or under, and we get about I think on a net basis around 4.2% to 4.5% net coupon on this.
And we've had absolutely no issues with it.
So we were actually hoping that this vendor would sell us more, but they were tapped out and we could only get $30 million this quarter.
But it's the same program that we've had every quarter.
Basically Southern California.
Yes.
Yes, in total commitments.
It's about 45%.
It's about the same.
Yes, from quarter to quarter, it ranges anywhere from 48% to 46%, so it's within that range.
Well, I would say that that's one of the reasons.
The other area is ---+ some of the resolutions of the TDRs and NPAs have to do with seasoning of the repayment programs that some of these borrowers have been under.
And some of them have qualified for upgrading, if you will, and some of them have paid off.
But first of all, we had very little going into the pipeline and the ones that are coming out of the pipeline are in a positive way via upgrade or payoffs.
Actually, I think we've got some more room for improvements there, as my credit people have told me.
I'm looking forward to a little bit more of an improvement in the second quarter as they continue to review all of these loans.
Like many loans that were in trouble at one time we were very good at downgrading but we were not as good in terms of looking for opportunities to upgrade.
And with the seasoned experienced credit people that we have, we are looking at those options, those options to upgrade.
One of the things that, as <UNK>
<UNK>
has mentioned, that is important to the NPLs are not that significant; it's virtually none.
One of the reasons is it's a part of loan portfolio management, and part of even the loan payoffs this quarter and then also prior quarters.
We look at the financial performances of these individual loans and we give our customer enough notices to take out the relationship and we have been actually fairly successful in doing that.
We might have some opportunity but it all depends on a quarter-by-quarter analysis of the entire portfolio.
And so we look at various different factors that's both quantitative and qualitative.
And depending on that type of analysis, if there's room to take another negative provision, we will.
If there isn't, we can't.
But it's hard to prognosticate as we sit and talk today because we're so far out from the end of the quarter.
They were all overnight.
Yes, it is.
That hasn't changed.
Thank you, <UNK>.
Well, in the first quarter, I believe they generated a little over $50 million, <UNK>, in new loans.
And their deposits are, on the DDA category, totaling roughly about $25 million.
Yes, I am.
We are ---+ Healthcare Lending Group is one of those new verticals for us or any of the Korean-American banks.
And I believe that, in order for us to continue to grow in the kind of environment we're in, we need additional verticals.
And so I am and <UNK>, we are both talking to some folks about joining the organization.
These are people that are not within the Korean-American banking sector but in mainstream banking to provide what I call additive components or additional verticals to the core Korean-American banking strategy.
No.
We are very disciplined on that front.
You know, at the risk of just reiterating and reemphasizing, this is a relationship focused organization and business model.
As part of that, the loan generation is very important, but just as important is the generation of low-cost deposits.
And as you have heard me say over the years, <UNK>, CDs don't count.
Rate sensitive deposits don't count.
So the focus has been and will continue to be the generation of the quality of loans as well as hopefully noninterest-bearing DDAs but certainly low-cost DDA.
So we are very focused on that point and we generally, unless it's for defensive purposes involving a very good customer, we don't generally like to compete for deposits on the basis of pricing.
Thank you for listening to Hanmi's Financial's first-quarter conference call.
We look forward to speaking to you next quarter.
