Welcome to the Hanmi Financial Corporation’s 2009 fourth quarter earnings conference call. My name is Regina, and I will be your operator for today. At this time, all participants are in listen-only mode. We will conduct a question-and-answer session toward the end of this conference. (Operator instructions) As a reminder, this call is being recorded for replay purposes. I would like to introduce Mr. David Yang, Investor Relations and Corporate Planning Officer.

Welcome to Hanmi Financial Corporation’s 2009 fourth quarter earnings conference call. Thank you for joining us today. With me today to discuss Hanmi Financials’ fourth-quarter highlights are Jay Yoo, our President and Chief Executive Officer; Brian Cho, our Executive Vice President and Chief Financial Officer; and J. H. Sohn [ph], our Senior Vice President and Chief Credit Officer. Jay will start out the call with an overview of the quarter, Brian will then discuss financial performance, and J. H. will conclude with a review of credit quality. At the conclusion of the formal remarks, we will open the session for questions. In today’s call, we will include comments and forward-looking statements based on current plans, expectations, events, and financial industry trends that may affect the company’s future operating results and financial position. Our actual results could be quite different from those expressed or implied by our forward-looking statements, which involve risks and uncertainties. The speakers on this call claim the protection of the Safe Harbor provisions contained in the Securities Litigation Reform Act of 1995 for some factors that may cause our results to differ from our expectations. Please refer to our SEC filings, including our most recent Form 10-K and 10-Q. In particular, we direct you to the discussion in our 10-K of certain risk factors affecting our business. This morning, Hanmi Financial issued a news release outlining its financial results for the fourth quarter of 2009. Please visit our website at www.hanmi.com to obtain a copy. After comments by management this morning, we will open up this call to your questions. I will now turn the call over to Jay.

Thank you, David. Hello everyone, and thank you for joining us today. I would first like to inform you that we have appointed J. H. Sohn as our permanent Chief Credit Officer, pending regulatory approval. As has been the case for several quarters now, and despite making progress on several fronts, our fourth-quarter financial performance was affected by a challenging economic environment and the decline in commercial real estate market. We reported a fourth-quarter loss of $35.9 million or $0.70 per share, largely as a result of a $77 million provision for credit losses; and a loss of $122.2 million for year 2009 or $2.57 per share. Although challenging, 2009 was a year of (inaudible) change for Hanmi. Looking beyond our bottom line fourth quarter and full-year loss, we made progress in executing our strategic plan to reposition Hanmi for consistent, significant, and long-term profitability. We have successfully deleveraged our balance sheet to improve our capital portfolio [ph], to withstand the impact of the current economic environment. Further, we have substantially improved the liquidity. Our core deposits significantly grew last year, enabling us to reduce reliance on corporate funding. We continued to diligently deal with credit issues, especially in the fourth quarter, we proactively identified program loans and provided adequate reserve for them or charged them off. With many economists predicting on economy recovery in 2010, we are hopeful that Hanmi will report major improvements in financial performance as the current year progresses. However, with approximately 78% of our low end portfolio collateralized by commercial real estate, much will depend on the extent to which the (inaudible) anticipate improvement in the economy as a whole. In the meantime, we continue to work on our loan portfolio, so we can begin to see decline in non-performers and net charges in the…

Thank you, Jay. Good morning, everyone. Let me begin with our 2010 operating strategy. With our capital management plans, we downsized both our loans and deposits by 16% and 10% respectively, and filed the Shelf Registration with the SEC to pursue various cash converging options. We will be flexible and persistent in our efforts to execute that to improve our financial strength. Equalizing debt, the balance sheet deleveraging is the only short-term solution we have formulated our levels to check our raising trends and we have made every effort to raise the necessary capital in a timely manner. In 2010, our balance sheet management will be focused on liquidity preservation instead of capital ratio management. With these trends in our project forecast, we will reduce our long-term assets once enough capital is raised, while preserving our deposit base to maintain a sufficient level of liquidity. This year, given deposit restrictions by duly inactive SEC regulation, we have launched new deposit products with flexible and innovative features. In addition, we continue to enhance the quality and level of customer service. These programs are working very effectively so far and we are able to preserve our deposit base and obtain new customers without compromising our margin. On the hedges side, we are continuing to sell non-performing assets whenever the market is available. In addition, we have maximized the contingency (inaudible) lines from Federal Home Loan Bank and (inaudible). I will now discuss our financials for the quarter. During the fourth quarter of 2009, our total assets decreased by $295 million to $3.2 billion at year end. The majority of the decrease was attributable to the reduction in gross loans in investment securities by $158 million and $73 million respectively. Most of the reduction was preplanned and implemented through sale of our assets,…

Thank you, Brian. Yesterday's financial results indicated the erosion in credit quality persisted in the fourth quarter, when we reported our requisite provision for credit losses over $77 million. This reflects both the continuing deterioration in the commercial real estate market and the bank’s commitment to establish reserves sufficient to cover any losses within the loan portfolio. As we pointed out last quarter, we will continue to be committed to our consumer methodology. Let me now go the numbers relevant to asset quality. At year end, approximately $94 million in loans were newly added to NPL. Of these, approximately $62 million or 67% was C&I loans, and $31 million or 33% were real estate loans. On the other hand, about $50 million came off the NPL list by either charge-offs, pay-offs, or bringing loans back to accrual status. The net result is approximately a $45 million increase in NPL over the past two quarters. Also, from the total NPL over $219 million, $74 million or 33.8% is current or less than 30 days past due. Out of the current NPL, less than 30 days past due, $35.7 million became non-accrual from accrual status, due to collateral shortfalls with inevitable cash flow. And from that $35.7 million, $7.9 million was restructured and identified as troubled and restructured loan. In addition to NPL, delinquent loans also increased. As of December 31, delinquent loans were $186.3 million or 6.6% of the total gross loans, compared to $151 million or 5.07% of the total gross loans as of September 30. A major factor here was our increase in delinquencies among owner-occupied business property loans and SBA loans. The quarter-to-quarter increase in delinquencies within these two loan categories was approximately $18 million and $13.5 million respectively. Net charge-offs for the fourth quarter were $57.3 million,…

This completes our prepared remarks. Operator, we are now ready for the Q&A.

(Operator instructions) Your first question today comes from the line of Julianna Balicka with KBW. Julianna Balicka – KBW: Good morning. Thank you for taking my questions. I wanted to find out a few things, if you don't mind. One, can you update us up to the date of your most recent regulatory examination?

Well, they just completed the target examinations, and we are expecting an Exchange meeting very soon. Julianna Balicka – KBW: Very good. And in terms of your deleveraging strategy, which looked pretty effective this quarter, do you have any expectations for ongoing deleveraging in the next two quarters?

Well, as I said on my prepared remarks, while the focus over balance sheet management is shifting to preservation of liquidity for this year, because we already determined we are going to rely on capital rate from outside sources for capital ratio management. So our focus is on liquidity management. So probably our reduction of long-term assets will continue, but to a lesser extent compared to last year and the liability side, we are going to preserve our deposit base, so to increase our cash and liquid assets. So total assets, we don’t expect much to this option when it comes over to the last year. Julianna Balicka – KBW: Okay, that makes sense. And then, you had referenced that you had been turning away some loan renewals. Do you have a sense of what percentage of renewals you denied or anything like that?

I am J. H. Sohn. We do not have any percentage of the renewals that are turned already. However, we are being more conservative in our areas of our lost credit, especially in our renewal decisions in the picture. Julianna Balicka – KBW: Okay, all right, that makes sense. And then finally and then I will sit back and let someone else ask some questions. You mentioned a restructured loan balance and also the 30 to 89 delinquent loan balances in your remarks, and unfortunately, I was not writing fast enough to write that down. So do you mind repeating that please?

This is J. H. again. So the $186.3 million in delinquency loan improved interest non-accrual loans. Of the total delinquent loans, $41.2 million are loans between 30 to 89 days past due and $145.1 million are loans over 90 days past due, or loans which are non-accrued on over 30 days past due. Julianna Balicka – KBW: And then do you have the amounts of troubled debt restructuring, please?

Yes, troubled loans, during the fourth quarter of 2009, we restructured our bottom line to $47.5 million. As of December 31, the bank had $33 million in loans identified as TDRs. Julianna Balicka – KBW: Very good. Thank you very much for taking my questions.

You are welcome.

(Operator instructions) And if there are no further questions in queue, I would like to turn the call over to Mr. David Yang for his remarks.

Thank you for listening to Hanmi Financials fourth-quarter earnings conference call. We look forward to talking to you next quarter.

Thanks, everybody.

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