Good morning and welcome to the Hanmi Financial Corporation 2008 fourth quarter and fiscal year end conference call. At this time all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) This call may contain forward-looking statements which are made under the SEC’s Safe Harbor rules for forward-looking statements. Forward-looking statements related to the company’s future operations, prospects and business are identified by words such as will, should, could, expect, intends, anticipate, believes, estimates, predicts, potential or continue or the negative such terms. Although we believe that expectations reflected in the forward-looking statements are reasonable based upon our current judgment, we cannot guarantee future results, level of activity, performance or achievements. These statements involve known and unknown risks and uncertainties and other factors that may cause our actual results, level of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of Hanmi Financial. Accordingly actual results may differ materially from those expressed and/or implied or projected by the forward-looking information and statements. Hanmi undertakes no obligation to update any forward-looking statements in the future. For additional information on factors that could cause actual results to differ materially from the anticipated results or other expectations expressed in forward-looking statements, please see the company’s filings with the SEC. Representing the company today are Jay S. Yoo, Hanmi President and Chief Executive Officer; Brian Cho, Executive Vice President and Chief Financial Officer; and John Park, Executive Vice President and Chief Credit Officer. I would now turn the call over to Mr. Yoo. Please go ahead, sir.

Thank you, Michel. Good morning everyone and thank you for joining us today. In today’s press release we noted that Hanmi Bank, like its competitors, continues to operate in a difficult environment. The challenges we faced in 2008 are reflected in our income statement and the balance sheet. Brain and John will address them in more detail later. In brief, we reported a fourth quarter loss of $3.8 million or $0.08 per share, largely as a result of a substantial increase in the provision for the credit losses. First quarter 2007, we reported a net loss of $100 million or $2.15 per share, which was the reflection of a non-cash goodwill impairment charge of $102.9 million. For the full year 2008, we reported a net loss of $102.1 million or $2.23 per share, compared to a net loss of $60.8 million or $1.27 per share in 2007. The 2008 net loss includes a second quarter non-cash goodwill impairment charge of $107.4 million, whereas the 2007 net loss includes our non cash goodwill impairment charge of $102.9 million. Without the impairment charges, non-GAAP net income for 2008 would have been $5.3 million or $0.12 per diluted share, compared to a non-GAAP net income of $42.1 million or $0.88 per diluted share in 2007. Suffice it to say, all indications are 2009 will be another challenging year as well. During this economic downturn, our focus is on the improvement of our credit quality and the soundness of our business, not on balance sheet growth. That said, credit monitoring and the risk management continue to be our highest priorities. Since, we last spoke three months ago, we believe that we have made significant progress in identifying and appropriate request by provident loss. Moreover, we have been diligent in provisioning for credit losses where…

Thank you, Mr. Yoo. Good morning, everyone. Let us start with our liquidity issue, a hot topic in the banking industries. In the fourth quarter, the situation was even worse in our niche market due to the fund outflow to Korea. This outflow was triggered by depositor currency speculation over potential future appreciation of the Korean currency. According to our contingencies funding plan activated in the third quarter, we continued to pay broker deposits as a main source of wholesale funding. The broker deposits therefore increased to $818 million at December 31 from $266 million three months earlier. With the additional broker deposits, our total deposits increased by roughly 10% to $3.1 billion from $2.8 billion at the third quarter end. We therefore reduced our borrowings from the federal home loan bank by 28% to $422 million at year end from $583 million three months earlier. As a result, the future availability of Federal Home Loan Bank borrowings increased to $261 million as of December 31, 2008 and we are able to low our net loan-to-deposit ratio to 107% from the prior quarter end of 117%. Our utmost priority in 2009 is to replace these corporate deposits with customer core deposits to the maximum extent. We believe, we can reveal our core deposit foundation this year, through our deposit gathering programs, hopefully with enhanced products and service offerings. Starting in January, we have already obtained some increase in customer deposits with the stabilization of the Korean currency valuation, and our corporate deposit has now been reduced to $728 million, and the future availability of Federal Home Loan Bank borrowings has been increased to around $340 million. In addition to this FHLB borrowing capacity, we have secured over $1 billion line with the (Inaudible) discount window, and these confidential lines together…

Thank you, Brain. As I did last quarter, let me turn first to the subject of non-performing loan and delinquent loans. It is apparent that the deteriorating economy contributed to a further deterioration in the long portfolio during the fourth quarter. Non-performing loans were $121.9 million or 3.62% of gross loans at December 31 compared to non-performing loans of $111.9 million or 3.34% of gross loans at September 30. The breakdown on NTL is as follows: 31% for construction loans, 48% were C&I loans, 7% were CRE loans and 13% SBA loans. Delinquent loans were $128.5 million or 3.82% of gross loans at September 31 compared to delinquent loans of $112.9 million or 3.08% of total gross loans at September 30. The largest contributor here was an $8.5 million loan to a private golf course near San Diego. In addition, one out of state motel loan in the amount of $2.4 million and one commercial property loan in the amount of $2.5 million contributed to this increase. The fourth quarter provision for loan losses was $25.7 million compared to $13.2 million for the third quarter. The majority of this increase is attributable to the golf course loan I have previously mentioned, a newly identified trading company loan and additional reserve for opening condominium project and other newly identified commercial term loans. Charge-offs; net of recoveries at December 31 were $19.5 million compared to $11.8 at the end of the third quarter. With the exception of two non-performing CRE loans which I will discuss in a moment, the bulk of fourth quarter charge-off or in a number of loans to small businesses, which continue to be hit hard in this weakening recession. The allowance for the loan losses at December 31 was $75 million or 2.11% of total loan compared to…

(Operator Instruction) and your first question comes from the line of Don Worthington; please proceed. Don Worthington - Howe Barnes Hoefer & Arnett, Inc.: Thank you, good morning. One question in terms of the increase in brokered deposits, what rate are you paying and what’s the term of those accounts?

The rate differences are depending on the terms of course, and we have let the maturity from three months to one year around. So, average rate I may say about 2.23 a quarter. Don Worthington - Howe Barnes Hoefer & Arnett, Inc.: Okay, great and then in terms of access to TARP funds, would you have an update on your application status?

Like many other banks that applied, we haven’t yet heard from the treasury regarding the TARP funds. Although, we are hopeful at this point, we simply do not have enough information to gauge the likelihood that our application will be approved. However, at this time we are expecting to receive good news in a few weeks. Don Worthington - Howe Barnes Hoefer & Arnett, Inc.: Okay, thank you.

Thank you.

Your next question comes from the line of Julianna Balicka; please proceed. Julianna Balicka - Keefe, Bruyette & Woods: Good morning. I wanted to find out, what is the reason behind the decrease in FHLB advances? I see that they went down from $584 million to $422 million.

I am talking about future availability of the Federal Home Loan Bank line. So, total availability still remains same and our borrowing availability, course of the usage was very heavy at the end of the third quarter. So, our future availability was, I don’t remember the exact number, but around $100 million only. At the end of the year, we reduced our usage of our FHLB borrowing. So, as a result our future availability has been increased to 226, and then in January, we further reduced our usage of FHLB borrowing, so our future availability has again increased to up to $340 million level. Julianna Balicka - Keefe, Bruyette & Woods: And what kind of funding did you replace this with in January when you reduced the funding?

In January as I said, we actually experienced deposit increase. Julianna Balicka - Keefe, Bruyette & Woods: And on the Oakland condo project, the $6.5 million charge-off, can you refresh my memory and what the remaining book value is on this loan?

The remaining book balance is $25 million. Julianna Balicka - Keefe, Bruyette & Woods: And what’s going on in terms of the resolution of that loan?

We are looking to sell that property. Previously with anticipation of some recovery, the current situation, one time we re-contemplate converting that great rental property, but I don’t think that makes sense for the bank at this time. So, we are looking to sell that hopefully in the first or second quarter of this year. Julianna Balicka - Keefe, Bruyette & Woods: Very good and then finally I’m sorry if you said this on the call, is there a brokered CD limit that you may take on?

Lots of additional limiting caused by regulation, so as soon as the money is available we can play with the broker deposit, but anyway the core deposit is our core foundation of the banking. So, as I said, our priority in 2009 is to replace that broker deposit with our core deposit and we actually experienced deposit increase in this year, starting this year. Julianna Balicka - Keefe, Bruyette & Woods: Very good, thank you very much.

(Operator Instructions) and your next question comes from the line of Bill Chen, please proceed.

Right thanks for taking my question. Just to kind of come back to the FHLB question, you guys have been taking the balance of the advance account, correct?

Yes,

And so I’m looking at the average interest rates on the constant re-capital and FHLB is showing 2.01%, is that correct?

It depends on the terms and gain.

Okay, but on average

On average I may say around 2.5%. We have some long-term borrowings of two year, three year time.

When I look at your CDs and other deposits above, they look like they’re all being priced above the FHLB loans, the contanst capital?

Yes, that is true

So, if that’s the case why are you paying down the FHLB loans?

Well, as I said the core deposit is our basic foundation to the banking business and if we're only concerned about the cost an income statement, you are right, we don’t have to get the deposit from our customer, which is much more expense. But we need core deposit, because our core deposit customers is going to bring in income and also lending opportunities. So, our depositor is our backbone in our business. So, although the cost we have to pay is higher than borrowing, we have to build up our relationship further.

Right. Now it makes sense, but at the same time you’re taking on more brokered CDs, which are not part of your core deposit and you don’t have the same relationship?

So, it’s in broker deposit and Federal Home Loan Bank borrowings. Our broker deposit there is no guarantee to money is available forever. Our reporting company, the borrowing is more stable, that’s because we have property project, that’s one reason and the second reason is Federal Home Loan Bank of borrowing is much more flexible. They offer from overnight to ten years. So, that also is available right away.

I’ll make an argument of why you should be taking down more Federal Home Loan Bank advances rather than taking on brokered CDs, but it seems to have been put backwards.

No, to secure our future funding plan we tried to secure the Federal Home Loan Bank borrowing line and broker deposit money is now currently available. So when it is available we try using that money and then reserving FHLB borrowings as our contingency lines for the future use.

Alright, so what that indicates is that, at least in the fourth quarter you’re having some liquidity issues I guess?

Yes, we had liquidity issues, same as other banks. That’s why we activate our contingency funding plan.

Okay and in terms of, how much of balance sheet line of credit whatever the case may be do you have that you can make available to your customers?

Well, I don’t remember any number. Total amount of balance guidance was above $300 million. I would say 50 is an even number, but one thing I’m sure is for coming month line, it was reduced between the fourth quarter by $70 million; and from $300 million to $270 million. I don’t remember this actually. I don’t have the break down. Anyway this decreased by $70 million during the first quarter.

Just to make sure I’m being clear, I apologize I might not have been. I’m thinking more of the line of credits and other moneys available to your customers?

You are talking about un-disbursed commitment?

Exactly, that’s what I’m wanting to know.

That number has been decreased by $70million.

That’s right, yes.

We are continuing to monitor that portion of that. I do apologize that I don’t have the exact number on hand. I will have that information available at a later time.

Okay, I’ll just follow-up of offline. In terms of the deposits, the non-interest bearing deposits and the money market and NOW deposits, have they just mainly been coming down just because of the situation with the cash moving back to Korea? I feel I should have been talking about…

That’s one reason and another reason is the same situation in the whole banking industry so far, but depositors lost some confidence in banking system, that’s what happened to in the first quarter.

And that would have hit your non-interest bearing deposits more?

Yes.

Okay, so that isn't so much customers are leaving your company or people having to drawdown money because they are having issues, personal issues?

Yes, that’s right. Personal interest in what they are losing for the banking system overall after Lehman bankruptcy.

So, that’s what it is. I guess, the reason I’m asking this is you probably understand a lot of us have been looking for the canary in the coal mine, so to speak and so you do a lot of banking with your customers and so when I start seeing that many deposits leaving the bank, if the reason that the deposits are leaving the bank because they’re having financial issues and it makes us a little bit concerned about the loans of course?

The main reason of their speculation for currency evaluation; I don’t know if I understand your question correctly. In October, November the Korean currency won has been depreciated a lot, almost by 40%. So, they expect the currency will be that or they send their money for their investment into Korea. So, they are financially interested towards such a outflow.

Right and that make senses for the money market and the NOW deposits, that’s a very good explanation for that, but I’m trying to understand what happened in the non-interest bearing deposits?

Non-interest bearing is a different one actually. They are directly affected by the recession we experienced. The business is quite low, so the average balance of individual account is a lot lower than before. So, that’s the main reason.

Okay, does that imply that they are having, some of your customers are having financials situations?

That’s right, their business is slow.

So, how many of the loans that you’re making especially on a C&I side are to the same customers that have their non-interest bearing deposits, are having these financial issues?

Well, currently our leading activity is not that active. I have not had that many requests from existing consumers. As indicated by loan volume, there has not been any significant increase in the fourth quarter.

Okay and in terms of the situation how are you guys planning to attract customers, actually I mean customer deposits? Because I’m looking at the situation with your brokered CDs and that $800 million of brokered CDs is basically about 26.6% of your total deposits, and so I’m watching your total risk rate capital ratio approaching that 10% mark, and so you guys need to be bringing in a lot of deposits really quickly and so how do you do that?

As I’ve said in January, we already experienced deposit increase. So, basically, a lot of money, about $23 million in December alone was flown out to Korea for currency speculation. So, once the currency stabilizes the money is coming back and in January we almost had $23 million increase in deposits. So in January, $90 million out of $818 million broker deposit, $500 million has matured and we did not renew. So our broker deposit has already reduced to $728 million, okay. We have a good size of cash surplus position now. So, in February and March, we are waiting for another $200 million broker deposits will mature and with our current hedge position we don’t have to renew those broker deposits, and this continuing deposit increase is going to have further 200 broker deposits to mature after the first quarter.

And it sounds as if your FHLB line and also the lines of Federal might help you

That is the contingency line.

And in terms of the golf course, I’m sure you guys are well aware there was a San Diego union trivia article on it?

Yes.

It’s a south brook gold course, right?

Yes.

So, how big was the loan to the Southbrook gold course?

$8.6 million.

It was $8.6 million to Hanmi?

We made a loan in the amount of current outstanding closure rate $8.6 million.

Okay, this article is suggesting that it’s $18.1 million of the total loan. I’m just trying to figure where that number comes from?

Where did you get that number?

That’s in our article?

I did read that article and I think when they did title search, they doubled it. I don’t know how that doubled, but our exposure is $8.6 million. I did read that article also.

Is there any other exposure to other folks that you’re going to have to fight with over that situation?

Right now, the latest information I have is, there is a buyer for the golf course. So, as it stands now, I think that will be resolved in the next 60 to 90 days, that’s what I anticipate. I am waiting for the documentation of that sale at this time, but that’s the latest I have on that in the golf course.

Okay, great and in terms of the construction loans, can you guys give any visibility on what’s in there, the land loans, the construction loans, kind of geography, anything that gives us color will be great.

All the land loans are in California and as you know, some projects are being delayed, some of our borrowers who acquired this land in anticipation of construction, some of those are being delayed and as the renewals come up we appraise the property and we request for principal reduction and such.

Okay, so they’re not speculator there?

No.

May have not gone vertically yet on that?

No, not yet.

In terms of the C&I loan, the same thing, could you just give any kind of color whatsoever on that geography; size of the companies, industries anything?

Well, our business is concentrated in California. Our state loans through our loan production offices. We do have various loans out of state, but over 80% of our loans are located in California. Julianna Balicka - Keefe, Bruyette & Woods: Okay, but as you well know, I’m in Los Angeles and there is quite a bit of discrepancy depending on where those loans are, whether it’s West LA versus Riverside Inland Empire. So, are they mainly in the Korean community, West LA?

It’s in LA County, Orange County. We do not have any of those rate in the Inland Empire.

And anything in terms of industries, any color we can get?

No, we do have significant loans in the gas station and car wash business and also hotel industry. So, as you know the carwash business has been impacted by current downturn, so we are seeing some weakness in that industry.

Well, I really appreciate your clarity guys. Thank you.

Before you go, you asked for under first commitment; that amounted $336 million as of December 31.

Sounds like you guys have more than enough on the line then to deal with that. Great.

And you next question is a follow-up from the line of Julianna Balicka; please proceed. Julianna Balicka - Keefe, Bruyette & Woods: Thank you for letting me comeback to the queue. Quick question, your FDIC base insurance assessment rate for next year, what that’s going to be?

It would be $0.17 for $100. Julianna Balicka - Keefe, Bruyette & Woods: 17 basis points?

Yes, that’s right. Julianna Balicka - Keefe, Bruyette & Woods: That’s your base assessment rate?

Correct, 17 basis.

Correct, 17 basis. Julianna Balicka - Keefe, Bruyette & Woods: That’s the new one for 2009 or that’s the old 2008, that’s going to be increasing?

I’m talking about 2009. Julianna Balicka - Keefe, Bruyette & Woods: Okay, very good thank you very much.

And that concludes the question-and-answer session. Now, I’ll turn it back to Mr. Yoo for closing remarks.

Thank you, Michel. When we last spoke, it was clear that the credit contraction that dominated the news during that time was beginning to have a negative impact on the economy as a whole. Today we can see that the effects of that contraction have extended far beyond across the credit market. We are now well into what is clearly one of the most severe economic downturns in memory, with a little reason to believe that it will end soon. As today’s quarter release makes clear, the positive trend in delinquencies and NPL’s that we saw in the third quarter did not hold. Moreover history cutting low interest rate and the fierce competition among Korean and American Banks have put pressure on the core deposits; however although the slowing economy has an effect on our balance sheet and income statement, we believe with that risk inherent in the bank’s loan portfolio is manageable and that liquidity needs can readily be met. Today’s economy environment does indeed present enormous challenges, but they’re challenges that Hanmi is well prepared to meet. Again, thank you for joining us today. We look forward to speaking with you when we report our first quarter results in April. Thank you everyone and good bye.

Ladies and gentlemen, thank you for your participation in today’s conference. This concludes the presentation. You may now disconnect. Have a great day.