Hanmi Reports 2024 Third Quarter Results
Hanmi Financial (NASDAQ: HAFC) reported its Q3 2024 financial results, showing a net income of $14.9 million or $0.49 per diluted share, up from $14.5 million or $0.48 per share in Q2 2024. The return on average assets was 0.79%, and the return on average equity was 7.55%. Net interest margin increased to 2.74%, driven by higher yields on interest-earning assets and lower funding costs. Loans grew by 2% due to a 27% increase in loan production, while total deposits increased by 1.2%, with noninterest-bearing demand deposits growing by 4.7%.
Credit loss expense rose to $2.3 million from $1 million in Q2. Nonaccrual loans decreased by 18.8%, while criticized assets increased due to downgrades. Noninterest expense dropped slightly to $35.1 million. Hanmi’s balance sheet remains strong with a robust loan pipeline and healthy capital ratios. Stockholders’ equity rose to $736.7 million, and the company repurchased 75,000 shares during the quarter.
Hanmi Financial (NASDAQ: HAFC) ha riportato i risultati finanziari per il terzo trimestre del 2024, mostrando un utile netto di 14,9 milioni di dollari, ovvero 0,49 dollari per azione diluita, in aumento rispetto ai 14,5 milioni di dollari o 0,48 dollari per azione nel secondo trimestre del 2024. Il ritorno medio sugli attivi è stato dello 0,79%, mentre il ritorno medio sul patrimonio netto è stato del 7,55%. Il margine di interesse netto è aumentato al 2,74%, sostenuto da rendimenti più elevati sugli attivi generanti interessi e costi di finanziamento ridotti. I prestiti sono cresciuti del 2% grazie a un aumento della produzione di prestiti del 27%, mentre i depositi totali sono aumentati dell'1,2%, con i depositi a vista non remunerati in crescita del 4,7%.
Le spese per perdite su crediti sono aumentate a 2,3 milioni di dollari rispetto a 1 milione nel secondo trimestre. I prestiti non in sofferenza sono diminuiti del 18,8%, mentre gli attivi criticati sono aumentati a causa dei declassamenti. Le spese non di interesse sono leggermente diminuite a 35,1 milioni di dollari. Il bilancio di Hanmi rimane solido con un robusto portafoglio di prestiti e rapporti di capitale sani. Il patrimonio netto degli azionisti è aumentato a 736,7 milioni di dollari, e la società ha riacquistato 75.000 azioni durante il trimestre.
Hanmi Financial (NASDAQ: HAFC) reportó sus resultados financieros del tercer trimestre de 2024, mostrando una utilidad neta de 14.9 millones de dólares, o 0.49 dólares por acción diluida, un aumento desde 14.5 millones de dólares o 0.48 dólares por acción en el segundo trimestre de 2024. El retorno sobre activos promedio fue del 0.79%, y el retorno sobre patrimonio promedio fue del 7.55%. El margen de interés neto aumentó al 2.74%, impulsado por mayores rendimientos en los activos generadores de intereses y menores costos de financiamiento. Los préstamos crecieron un 2% debido a un incremento del 27% en la producción de préstamos, mientras que los depósitos totales aumentaron un 1.2%, con los depósitos a la vista no remunerados creciendo un 4.7%.
Los gastos por pérdidas de crédito aumentaron a 2.3 millones de dólares desde 1 millón en el segundo trimestre. Los préstamos no devengados disminuyeron un 18.8%, mientras que los activos criticados aumentaron debido a las rebajas. Los gastos no relacionados con intereses cayeron ligeramente a 35.1 millones de dólares. El balance de Hanmi sigue siendo sólido con una robusta cartera de préstamos y ratios de capital saludables. El patrimonio de los accionistas aumentó a 736.7 millones de dólares, y la empresa recompró 75,000 acciones durante el trimestre.
Hanmi Financial (NASDAQ: HAFC)는 2024년 3분기 재무 결과를 발표하며 순이익이 1,490만 달러, 즉 희석 주당 0.49달러로, 2024년 2분기의 1,450만 달러에서 0.48달러로 증가했다고 밝혔습니다. 평균 자산 수익률은 0.79%였고, 평균 자본 수익률은 7.55%였습니다. 순이자 마진은 2.74%로 증가했으며, 이는 이자 발생 자산의 수익률 증가와 낮은 자금 조달 비용에 의해 추진되었습니다. 대출은 27%의 증가에 힘입어 2% 증가했으며, 총 예금은 1.2% 증가했으며 비이자 요구 예금은 4.7% 증가했습니다.
신용 손실 비용은 200만 달러에서 100만 달러로 증가했습니다. 비유예 대출은 18.8% 감소했지만, 비난받는 자산은 등급 하락으로 인해 증가했습니다. 비이자 비용은 3510만 달러로 조금 감소했습니다. Hanmi의 재무 상태는 견고하며 강력한 대출 파이프라인과 건강한 자본 비율을 유지하고 있습니다. 주주 자본은 7억3670만 달러로 증가했으며, 회사는 분기 동안 75,000주를 다시 매입했습니다.
Hanmi Financial (NASDAQ: HAFC) a publié ses résultats financiers pour le troisième trimestre 2024, affichant un bénéfice net de 14,9 millions de dollars, soit 0,49 dollar par action diluée, en hausse par rapport aux 14,5 millions de dollars ou 0,48 dollar par action au deuxième trimestre 2024. Le rendement des actifs moyens était de 0,79%, et le rendement des capitaux propres moyens était de 7,55%. La marge d'intérêt nette a augmenté à 2,74%, stimulée par des rendements plus élevés sur les actifs générant des intérêts et des coûts de financement réduits. Les prêts ont augmenté de 2% en raison d'une augmentation de 27% de la production de prêts, tandis que les dépôts totaux ont augmenté de 1,2%, les dépôts à vue non rémunérés ayant augmenté de 4,7%.
Les dépenses pour pertes de crédit ont augmenté à 2,3 millions de dollars contre 1 million au deuxième trimestre. Les prêts non classés ont diminué de 18,8%, tandis que les actifs critiqués ont augmenté en raison des rétrogradations. Les charges non d'intérêts ont légèrement diminué à 35,1 millions de dollars. Le bilan de Hanmi reste solide avec un pipeline de prêts robuste et des ratios de capital sains. Les capitaux propres des actionnaires ont augmenté à 736,7 millions de dollars, et l'entreprise a racheté 75 000 actions au cours du trimestre.
Hanmi Financial (NASDAQ: HAFC) hat seine Finanzberichte für das 3. Quartal 2024 veröffentlicht und zeigt einen Nettoertrag von 14,9 Millionen Dollar, oder 0,49 Dollar pro verwässerter Aktie, im Vergleich zu 14,5 Millionen Dollar oder 0,48 Dollar pro Aktie im 2. Quartal 2024. Die Rendite auf durchschnittliche Vermögenswerte lag bei 0,79%, und die Rendite auf durchschnittliches Eigenkapital betrug 7,55%. Die Nettozinsspanne stieg auf 2,74%, unterstützt durch höhere Erträge aus zinstragenden Vermögenswerten und niedrigere Finanzierungskosten. Die Kredite wuchsen um 2% aufgrund eines Anstiegs der Kreditproduktion um 27%, während die Gesamteinlagen um 1,2% zunahmen, wobei die nicht verzinslichen Sichteinlagen um 4,7% wuchsen.
Die Kreditverlustaufwendungen stiegen auf 2,3 Millionen Dollar von 1 Million im 2. Quartal. Die nicht in Verzug befindlichen Kredite verringerten sich um 18,8%, während die kritisierten Vermögenswerte aufgrund von Herabstufungen zunahmen. Die Nichtzinsaufwendungen gingen leicht auf 35,1 Millionen Dollar zurück. Die Bilanz von Hanmi bleibt stark mit einer robusten Kreditleitung und gesunden Kapitalquoten. Das Eigenkapital der Aktionäre stieg auf 736,7 Millionen Dollar, und das Unternehmen kaufte im Quartal 75.000 Aktien zurück.
- Net income increased to $14.9 million, up from $14.5 million in Q2 2024.
- Net interest margin improved to 2.74%, up by 5 basis points.
- Loans grew by 2% with a 27% increase in loan production.
- Total deposits increased by 1.2%, with noninterest-bearing demand deposits up by 4.7%.
- Noninterest expense decreased to $35.1 million.
- Stockholders’ equity increased to $736.7 million.
- Credit loss expense increased to $2.3 million from $1 million in Q2.
- Criticized assets increased due to downgrades.
Insights
Hanmi Financial reported solid Q3 2024 results, with net income increasing to
- Net interest margin expanded 5 basis points to
2.74% - Loans grew
1.3% to$6.26 billion - Deposits increased
1.2% to$6.40 billion - Noninterest-bearing deposits grew
4.7%
The bank's asset quality improved, with nonaccrual loans decreasing
Hanmi's capital position remains strong, with tangible common equity to tangible assets at
Overall, Hanmi demonstrated resilience in a challenging environment, maintaining solid loan growth and deposit stability while managing credit quality.
Hanmi's Q3 results reflect the broader challenges facing regional banks in the current economic environment. The slight improvement in net interest margin to
The increase in criticized assets, particularly the
Hanmi's capital ratios remain healthy, providing a buffer against potential economic headwinds. The continuation of the share repurchase program suggests management's confidence in the bank's financial position.
Looking ahead, Hanmi's solid loan pipeline and focus on disciplined credit administration should position it well for the remainder of 2024, assuming no significant deterioration in economic conditions.
LOS ANGELES, Oct. 22, 2024 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the third quarter of 2024.
Net income for the third quarter of 2024 was
CEO Commentary
“Our third quarter results were strong, with solid performance across all key operating metrics in the third quarter,” said Bonnie Lee, President and Chief Executive Officer of Hanmi. “Net interest margin increased five basis points to
“During the quarter, we remained focused on our disciplined credit administration practices and are pleased to report that we resolved several criticized and nonaccrual loans and recognized a recovery on a previously charged-off loan. We also proactively moved three loans to the special mention category to monitor them more closely. These loans are current, and we are confident they are well protected.”
“Hanmi is well-positioned for a strong close to 2024 with a robust balance sheet, ample liquidity, healthy capital ratios, and a solid loan pipeline. Our team remains committed to delivering the solutions our customers need and results our shareholders expect,” concluded Lee.
Third Quarter 2024 Highlights:
- Third quarter net income was
$14.9 million , or$0.49 per diluted share, compared with$14.5 million , or$0.48 per diluted share for the second quarter of 2024. The increase reflects a$2.0 million , or9.4% , increase in pretax, preprovision income, propelled by a2.9% increase in net interest income. - Loans receivable were
$6.26 billion at September 30, 2024, up1.3% from the end of the second quarter of 2024, driven by a27% increase in loan production to$347.8 million with a weighted average interest rate of7.92% . - Deposits were
$6.40 billion at September 30, 2024, up1.2% from the end of the second quarter of 2024; noninterest-bearing demand deposits were32.0% of total deposits. During the quarter, noninterest bearing demand deposits grew4.7% , while time deposits declined3.2% from the prior quarter. - Net interest income for the third quarter was
$50.1 million , up2.9% from the second quarter of 2024, driven by strong operational performance. Net interest margin (taxable equivalent) expanded five basis points to2.74% , as the average yield on loans increased to6.00% , while the cost of interest-bearing deposits remained unchanged at4.27% .
- Noninterest expense was
$35.1 million for the third quarter, down0.6% from the second quarter of 2024, primarily reflecting the absence of the second quarter$0.3 million branch consolidation charge.
- Credit loss expense for the third quarter was
$2.3 million , compared with$1.0 million for the prior quarter. The allowance for credit losses increased$1.4 million to$69.2 million at September 30, 2024, or1.11% of loans. For the third quarter, net loan charge-offs of$0.9 million included a$1.1 million charge-off on a nonaccrual loan transferred to held-for-sale and a$1.7 million recovery of a nonaccrual loan. - Asset quality included several notable actions: nonaccrual loans fell
18.8% to$15.2 million and included pay-offs of$6.8 million while criticized assets increased, with downgrades to special mention of three loans totaling$129.8 million , offset by the move to the held-for-sale nonaccrual loan category of the previously identified$28.3 million completed construction loan, upgrades of$6.1 million , and additional loan pay-offs of$1.3 million . Subsequent to the end of the third quarter, the Bank completed the sale of the nonaccrual loan.
For more information about Hanmi, please see the Q3 2024 Investor Update (and Supplemental Financial Information), which is available on the Bank’s website at www.hanmi.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov. Also, please refer to “Non-GAAP Financial Measures” herein for further details of the presentation of certain non-GAAP financial measures.
Quarterly Highlights
(Dollars in thousands, except per share data)
| As of or for the Three Months Ended | Amount Change | ||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | Q3-24 | Q3-24 | |||||||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | vs. Q2-24 | vs. Q3-23 | |||||||||||||||||||||
| Net income | $ | 14,892 | $ | 14,451 | $ | 15,164 | $ | 18,633 | $ | 18,796 | $ | 441 | $ | (3,904 | ) | ||||||||||||
| Net income per diluted common share | $ | 0.49 | $ | 0.48 | $ | 0.50 | $ | 0.61 | $ | 0.62 | $ | 0.01 | $ | (0.13 | ) | ||||||||||||
| Assets | $ | 7,712,299 | $ | 7,586,347 | $ | 7,512,046 | $ | 7,570,341 | $ | 7,350,140 | $ | 125,952 | $ | 362,159 | |||||||||||||
| Loans receivable | $ | 6,257,744 | $ | 6,176,359 | $ | 6,177,840 | $ | 6,182,434 | $ | 6,020,785 | $ | 81,385 | $ | 236,959 | |||||||||||||
| Deposits | $ | 6,403,221 | $ | 6,329,340 | $ | 6,376,060 | $ | 6,280,574 | $ | 6,260,072 | $ | 73,881 | $ | 143,149 | |||||||||||||
| Return on average assets | 0.79 | % | 0.77 | % | 0.81 | % | 0.99 | % | 1.00 | % | 0.02 | -0.21 | |||||||||||||||
| Return on average stockholders' equity | 7.55 | % | 7.50 | % | 7.90 | % | 9.70 | % | 9.88 | % | 0.06 | -2.33 | |||||||||||||||
| Net interest margin | 2.74 | % | 2.69 | % | 2.78 | % | 2.92 | % | 3.03 | % | 0.05 | -0.29 | |||||||||||||||
| Efficiency ratio (1) | 59.98 | % | 62.24 | % | 62.42 | % | 58.86 | % | 51.82 | % | -2.26 | 8.16 | |||||||||||||||
| Tangible common equity to tangible assets (2) | 9.42 | % | 9.19 | % | 9.23 | % | 9.14 | % | 8.89 | % | 0.23 | 0.53 | |||||||||||||||
| Tangible common equity per common share (2) | $ | 24.03 | $ | 22.99 | $ | 22.86 | $ | 22.75 | $ | 21.45 | 1.04 | 2.58 | |||||||||||||||
| (1) Noninterest expense divided by net interest income plus noninterest income. | |||||||||||||||||||||||||||
| (2) Refer to "Non-GAAP Financial Measures" for further details. | |||||||||||||||||||||||||||
Results of Operations
Net interest income for the third quarter was
| For the Three Months Ended (in thousands) | Percentage Change | ||||||||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Q3-24 | Q3-24 | |||||||||||||||||||||
| Net Interest Income | 2024 | 2024 | 2024 | 2023 | 2023 | vs. Q2-24 | vs. Q3-23 | ||||||||||||||||||||
| Interest and fees on loans receivable(1) | $ | 92,182 | $ | 90,752 | $ | 91,674 | $ | 89,922 | $ | 85,398 | 1.6 | % | 7.9 | % | |||||||||||||
| Interest on securities | 5,523 | 5,238 | 4,955 | 4,583 | 4,204 | 5.4 | % | 31.4 | % | ||||||||||||||||||
| Dividends on FHLB stock | 356 | 357 | 361 | 341 | 317 | -0.3 | % | 12.3 | % | ||||||||||||||||||
| Interest on deposits in other banks | 2,356 | 2,313 | 2,604 | 2,337 | 4,153 | 1.9 | % | -43.3 | % | ||||||||||||||||||
| Total interest and dividend income | $ | 100,417 | $ | 98,660 | $ | 99,594 | $ | 97,183 | $ | 94,072 | 1.8 | % | 6.7 | % | |||||||||||||
| Interest on deposits | 47,153 | 46,495 | 45,638 | 40,277 | 36,818 | 1.4 | % | 28.1 | % | ||||||||||||||||||
| Interest on borrowings | 1,561 | 1,896 | 1,655 | 2,112 | 753 | -17.7 | % | 107.3 | % | ||||||||||||||||||
| Interest on subordinated debentures | 1,652 | 1,649 | 1,646 | 1,654 | 1,646 | 0.2 | % | 0.4 | % | ||||||||||||||||||
| Total interest expense | 50,366 | 50,040 | 48,939 | 44,043 | 39,217 | 0.7 | % | 28.4 | % | ||||||||||||||||||
| Net interest income | $ | 50,051 | $ | 48,620 | $ | 50,655 | $ | 53,140 | $ | 54,855 | 2.9 | % | -8.8 | % | |||||||||||||
| (1) Includes loans held for sale. | |||||||||||||||||||||||||||
| For the Three Months Ended (in thousands) | Percentage Change | ||||||||||||||||||||||||||
| Average Earning Assets and | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Q3-24 | Q3-24 | ||||||||||||||||||||
| Interest-bearing Liabilities | 2024 | 2024 | 2024 | 2023 | 2023 | vs. Q2-24 | vs. Q3-23 | ||||||||||||||||||||
| Loans receivable (1) | $ | 6,112,324 | $ | 6,089,440 | $ | 6,137,888 | $ | 6,071,644 | $ | 5,915,423 | 0.4 | % | 3.3 | % | |||||||||||||
| Securities | 986,041 | 979,671 | 969,520 | 961,551 | 955,473 | 0.7 | % | 3.2 | % | ||||||||||||||||||
| FHLB stock | 16,385 | 16,385 | 16,385 | 16,385 | 16,385 | 0.0 | % | 0.0 | % | ||||||||||||||||||
| Interest-bearing deposits in other banks | 183,027 | 180,177 | 201,724 | 181,140 | 317,498 | 1.6 | % | -42.4 | % | ||||||||||||||||||
| Average interest-earning assets | $ | 7,297,777 | $ | 7,265,673 | $ | 7,325,517 | $ | 7,230,720 | $ | 7,204,779 | 0.4 | % | 1.3 | % | |||||||||||||
| Demand: interest-bearing | $ | 83,647 | $ | 85,443 | $ | 86,401 | $ | 86,679 | $ | 94,703 | -2.1 | % | -11.7 | % | |||||||||||||
| Money market and savings | 1,885,799 | 1,845,870 | 1,815,085 | 1,669,973 | 1,601,826 | 2.2 | % | 17.7 | % | ||||||||||||||||||
| Time deposits | 2,427,737 | 2,453,154 | 2,507,830 | 2,417,803 | 2,438,112 | -1.0 | % | -0.4 | % | ||||||||||||||||||
| Average interest-bearing deposits | 4,397,183 | 4,384,467 | 4,409,316 | 4,174,455 | 4,134,641 | 0.3 | % | 6.3 | % | ||||||||||||||||||
| Borrowings | 143,479 | 169,525 | 162,418 | 205,951 | 120,381 | -15.4 | % | 19.2 | % | ||||||||||||||||||
| Subordinated debentures | 130,403 | 130,239 | 130,088 | 129,933 | 129,780 | 0.1 | % | 0.5 | % | ||||||||||||||||||
| Average interest-bearing liabilities | $ | 4,671,065 | $ | 4,684,231 | $ | 4,701,822 | $ | 4,510,339 | $ | 4,384,802 | -0.3 | % | 6.5 | % | |||||||||||||
| Average Noninterest Bearing Deposits | |||||||||||||||||||||||||||
| Demand deposits - noninterest bearing | $ | 1,908,833 | $ | 1,883,765 | $ | 1,921,189 | $ | 2,025,212 | $ | 2,136,156 | 1.3 | % | -10.6 | % | |||||||||||||
| (1) Includes loans held for sale. | |||||||||||||||||||||||||||
| For the Three Months Ended | Yield/Rate Change | ||||||||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Q3-24 | Q3-24 | |||||||||||||||||||||
| Average Yields and Rates | 2024 | 2024 | 2024 | 2023 | 2023 | vs. Q2-24 | vs. Q3-23 | ||||||||||||||||||||
| Loans receivable(1) | 6.00 | % | 5.99 | % | 6.00 | % | 5.88 | % | 5.73 | % | 0.01 | 0.27 | |||||||||||||||
| Securities (2) | 2.27 | % | 2.17 | % | 2.07 | % | 1.93 | % | 1.79 | % | 0.10 | 0.48 | |||||||||||||||
| FHLB stock | 8.65 | % | 8.77 | % | 8.87 | % | 8.25 | % | 7.67 | % | -0.12 | 0.98 | |||||||||||||||
| Interest-bearing deposits in other banks | 5.12 | % | 5.16 | % | 5.19 | % | 5.12 | % | 5.19 | % | -0.04 | -0.07 | |||||||||||||||
| Interest-earning assets | 5.48 | % | 5.46 | % | 5.47 | % | 5.34 | % | 5.19 | % | 0.02 | 0.29 | |||||||||||||||
| Interest-bearing deposits | 4.27 | % | 4.27 | % | 4.16 | % | 3.83 | % | 3.53 | % | 0.00 | 0.74 | |||||||||||||||
| Borrowings | 4.33 | % | 4.50 | % | 4.10 | % | 4.07 | % | 2.48 | % | -0.17 | 1.85 | |||||||||||||||
| Subordinated debentures | 5.07 | % | 5.07 | % | 5.06 | % | 5.09 | % | 5.07 | % | 0.00 | 0.00 | |||||||||||||||
| Interest-bearing liabilities | 4.29 | % | 4.30 | % | 4.19 | % | 3.88 | % | 3.55 | % | -0.01 | 0.74 | |||||||||||||||
| Net interest margin (taxable equivalent basis) | 2.74 | % | 2.69 | % | 2.78 | % | 2.92 | % | 3.03 | % | 0.05 | -0.29 | |||||||||||||||
| Cost of deposits | 2.97 | % | 2.98 | % | 2.90 | % | 2.58 | % | 2.33 | % | -0.01 | 0.64 | |||||||||||||||
| (1) Includes loans held for sale. | |||||||||||||||||||||||||||
| (2) Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented. | |||||||||||||||||||||||||||
Credit loss expense for the third quarter was
Noninterest income for the third quarter increased
| For the Three Months Ended (in thousands) | Percentage Change | ||||||||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Q3-24 | Q3-24 | |||||||||||||||||||||
| Noninterest Income | 2024 | 2024 | 2024 | 2023 | 2023 | vs. Q2-24 | vs. Q3-23 | ||||||||||||||||||||
| Service charges on deposit accounts | $ | 2,311 | $ | 2,429 | $ | 2,450 | $ | 2,391 | $ | 2,605 | -4.9 | % | -11.3 | % | |||||||||||||
| Trade finance and other service charges and fees | 1,254 | 1,277 | 1,414 | 1,245 | 1,155 | -1.8 | % | 8.6 | % | ||||||||||||||||||
| Servicing income | 817 | 796 | 712 | 772 | 838 | 2.6 | % | -2.5 | % | ||||||||||||||||||
| Bank-owned life insurance income (expense) | 320 | 638 | 304 | (29 | ) | 280 | -49.8 | % | 14.3 | % | |||||||||||||||||
| All other operating income | 1,008 | 908 | 928 | 853 | 1,178 | 11.0 | % | -14.4 | % | ||||||||||||||||||
| Service charges, fees & other | 5,710 | 6,048 | 5,808 | 5,232 | 6,056 | -5.6 | % | -5.7 | % | ||||||||||||||||||
| Gain on sale of SBA loans | 1,544 | 1,644 | 1,482 | 1,448 | 1,172 | -6.1 | % | 31.7 | % | ||||||||||||||||||
| Gain on sale of mortgage loans | 324 | 365 | 443 | - | - | -11.2 | % | 100.0 | % | ||||||||||||||||||
| Gain on sale of bank premises | 860 | - | - | - | 4,000 | 100.0 | % | -78.5 | % | ||||||||||||||||||
| Total noninterest income | $ | 8,438 | $ | 8,057 | $ | 7,733 | $ | 6,680 | $ | 11,228 | 4.7 | % | -24.8 | % | |||||||||||||
Noninterest expense for the third quarter decreased by
| For the Three Months Ended (in thousands) | Percentage Change | ||||||||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Q3-24 | Q3-24 | |||||||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | vs. Q2-24 | vs. Q3-23 | |||||||||||||||||||||
| Noninterest Expense | |||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 20,851 | $ | 20,434 | $ | 21,585 | $ | 20,062 | $ | 20,361 | 2.0 | % | 2.4 | % | |||||||||||||
| Occupancy and equipment | 4,499 | 4,348 | 4,537 | 4,604 | 4,825 | 3.5 | % | -6.8 | % | ||||||||||||||||||
| Data processing | 3,839 | 3,686 | 3,551 | 3,487 | 3,490 | 4.2 | % | 10.0 | % | ||||||||||||||||||
| Professional fees | 1,492 | 1,749 | 1,893 | 1,977 | 1,568 | -14.7 | % | -4.8 | % | ||||||||||||||||||
| Supplies and communication | 538 | 570 | 601 | 613 | 552 | -5.6 | % | -2.5 | % | ||||||||||||||||||
| Advertising and promotion | 631 | 669 | 907 | 990 | 534 | -5.7 | % | 18.2 | % | ||||||||||||||||||
| All other operating expenses | 2,875 | 3,251 | 3,160 | 3,252 | 2,852 | -11.6 | % | 0.8 | % | ||||||||||||||||||
| Subtotal | 34,725 | 34,707 | 36,234 | 34,985 | 34,182 | 0.1 | % | 1.6 | % | ||||||||||||||||||
| Branch consolidation expense | - | 301 | - | - | - | -100.0 | % | 0.0 | % | ||||||||||||||||||
| Other real estate owned expense | 77 | 6 | 22 | 15 | 16 | 1183.3 | % | 381.3 | % | ||||||||||||||||||
| Repossessed personal property expense | 278 | 262 | 189 | 211 | 47 | 6.1 | % | 491.5 | % | ||||||||||||||||||
| Total noninterest expense | $ | 35,080 | $ | 35,276 | $ | 36,445 | $ | 35,211 | $ | 34,245 | -0.6 | % | 2.4 | % | |||||||||||||
Hanmi recorded a provision for income taxes of
Financial Position
Total assets at September 30, 2024 increased
Loans receivable, before allowance for credit losses, were
Loans held-for-sale were
| As of (in thousands) | Percentage Change | ||||||||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Q3-24 | Q3-24 | |||||||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | vs. Q2-24 | vs. Q3-23 | |||||||||||||||||||||
| Loan Portfolio | |||||||||||||||||||||||||||
| Commercial real estate loans | $ | 3,932,088 | $ | 3,888,505 | $ | 3,878,677 | $ | 3,889,739 | $ | 3,773,015 | 1.1 | % | 4.2 | % | |||||||||||||
| Residential/consumer loans | 939,285 | 954,209 | 970,362 | 962,661 | 926,326 | -1.6 | % | 1.4 | % | ||||||||||||||||||
| Commercial and industrial loans | 879,092 | 802,372 | 774,851 | 747,819 | 728,792 | 9.6 | % | 20.6 | % | ||||||||||||||||||
| Equipment finance | 507,279 | 531,273 | 553,950 | 582,215 | 592,652 | -4.5 | % | -14.4 | % | ||||||||||||||||||
| Loans receivable | 6,257,744 | 6,176,359 | 6,177,840 | 6,182,434 | 6,020,785 | 1.3 | % | 3.9 | % | ||||||||||||||||||
| Loans held for sale | 54,336 | 10,467 | 3,999 | 12,013 | 11,767 | 419.1 | % | 361.8 | % | ||||||||||||||||||
| Total | $ | 6,312,080 | $ | 6,186,826 | $ | 6,181,839 | $ | 6,194,447 | $ | 6,032,552 | 2.0 | % | 4.6 | % | |||||||||||||
| As of | |||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | |||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||
| Composition of Loan Portfolio | |||||||||||||||||||
| Commercial real estate loans | 62.3 | % | 62.9 | % | 62.7 | % | 62.8 | % | 62.5 | % | |||||||||
| Residential/consumer loans | 14.9 | % | 15.4 | % | 15.7 | % | 15.5 | % | 15.4 | % | |||||||||
| Commercial and industrial loans | 13.9 | % | 13.0 | % | 12.5 | % | 12.1 | % | 12.1 | % | |||||||||
| Equipment finance | 8.0 | % | 8.5 | % | 9.0 | % | 9.4 | % | 9.8 | % | |||||||||
| Loans receivable | 99.1 | % | 99.8 | % | 99.9 | % | 99.8 | % | 99.8 | % | |||||||||
| Loans held for sale | 0.9 | % | 0.2 | % | 0.1 | % | 0.2 | % | 0.2 | % | |||||||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||
New loan production was
Commercial real estate loan production for the third quarter of 2024 was
| For the Three Months Ended (in thousands) | |||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | |||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||
| New Loan Production | |||||||||||||||||||
| Commercial real estate loans | $ | 110,246 | $ | 87,632 | $ | 60,085 | $ | 178,157 | $ | 106,151 | |||||||||
| Commercial and industrial loans | 105,086 | 59,007 | 50,789 | 52,079 | 67,907 | ||||||||||||||
| SBA loans | 51,616 | 54,486 | 30,817 | 48,432 | 36,109 | ||||||||||||||
| Equipment finance | 40,066 | 42,594 | 39,155 | 57,334 | 71,075 | ||||||||||||||
| Residential/consumer loans | 40,758 | 30,194 | 53,115 | 53,465 | 55,026 | ||||||||||||||
| Subtotal | 347,772 | 273,913 | 233,961 | 389,467 | 336,268 | ||||||||||||||
| Payoffs | (77,603 | ) | (148,400 | ) | (86,250 | ) | (77,961 | ) | (62,140 | ) | |||||||||
| Amortization | (151,674 | ) | (83,640 | ) | (90,711 | ) | (106,610 | ) | (116,411 | ) | |||||||||
| Loan sales | (43,868 | ) | (42,945 | ) | (55,321 | ) | (29,861 | ) | (22,496 | ) | |||||||||
| Net line utilization | 9,426 | 1,929 | (4,150 | ) | (11,609 | ) | (70,238 | ) | |||||||||||
| Charge-offs & OREO | (2,668 | ) | (2,338 | ) | (2,123 | ) | (1,777 | ) | (9,369 | ) | |||||||||
| Loans receivable-beginning balance | 6,176,359 | 6,177,840 | 6,182,434 | 6,020,785 | 5,965,171 | ||||||||||||||
| Loans receivable-ending balance | $ | 6,257,744 | $ | 6,176,359 | $ | 6,177,840 | $ | 6,182,434 | $ | 6,020,785 | |||||||||
Deposits were
| As of (in thousands) | Percentage Change | ||||||||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Q3-24 | Q3-24 | |||||||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | vs. Q2-24 | vs. Q3-23 | |||||||||||||||||||||
| Deposit Portfolio | |||||||||||||||||||||||||||
| Demand: noninterest-bearing | $ | 2,051,790 | $ | 1,959,963 | $ | 1,933,060 | $ | 2,003,596 | $ | 2,161,238 | 4.7 | % | -5.1 | % | |||||||||||||
| Demand: interest-bearing | 79,287 | 82,981 | 87,374 | 87,452 | 88,133 | -4.5 | % | -10.0 | % | ||||||||||||||||||
| Money market and savings | 1,898,834 | 1,834,797 | 1,859,865 | 1,734,658 | 1,576,006 | 3.5 | % | 20.5 | % | ||||||||||||||||||
| Time deposits | 2,373,310 | 2,451,599 | 2,495,761 | 2,454,868 | 2,434,695 | -3.2 | % | -2.5 | % | ||||||||||||||||||
| Total deposits | $ | 6,403,221 | $ | 6,329,340 | $ | 6,376,060 | $ | 6,280,574 | $ | 6,260,072 | 1.2 | % | 2.3 | % | |||||||||||||
| As of | |||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | |||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||
| Composition of Deposit Portfolio | |||||||||||||||||||
| Demand: noninterest-bearing | 32.0 | % | 31.0 | % | 30.3 | % | 31.9 | % | 34.5 | % | |||||||||
| Demand: interest-bearing | 1.2 | % | 1.3 | % | 1.4 | % | 1.4 | % | 1.4 | % | |||||||||
| Money market and savings | 29.7 | % | 29.0 | % | 29.2 | % | 27.6 | % | 25.2 | % | |||||||||
| Time deposits | 37.1 | % | 38.7 | % | 39.1 | % | 39.1 | % | 38.9 | % | |||||||||
| Total deposits | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||
Stockholders’ equity at September 30, 2024 was
Hanmi and the Bank exceeded minimum regulatory capital requirements, and the Bank continues to exceed the minimum for the “well capitalized” category. At September 30, 2024, Hanmi’s preliminary common equity tier 1 capital ratio was
| As of | Ratio Change | ||||||||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Q3-24 | Q3-24 | |||||||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | vs. Q2-24 | vs. Q3-23 | |||||||||||||||||||||
| Regulatory Capital ratios (1) | |||||||||||||||||||||||||||
| Hanmi Financial | |||||||||||||||||||||||||||
| Total risk-based capital | 15.04 | % | 15.24 | % | 15.20 | % | 14.95 | % | 15.07 | % | -0.20 | -0.03 | |||||||||||||||
| Tier 1 risk-based capital | 12.29 | % | 12.46 | % | 12.40 | % | 12.20 | % | 12.30 | % | -0.17 | -0.01 | |||||||||||||||
| Common equity tier 1 capital | 11.95 | % | 12.11 | % | 12.05 | % | 11.86 | % | 11.95 | % | -0.16 | 0.00 | |||||||||||||||
| Tier 1 leverage capital ratio | 10.56 | % | 10.51 | % | 10.36 | % | 10.37 | % | 10.27 | % | 0.05 | 0.29 | |||||||||||||||
| Hanmi Bank | |||||||||||||||||||||||||||
| Total risk-based capital | 14.28 | % | 14.51 | % | 14.50 | % | 14.27 | % | 14.42 | % | -0.23 | -0.14 | |||||||||||||||
| Tier 1 risk-based capital | 13.24 | % | 13.47 | % | 13.44 | % | 13.26 | % | 13.42 | % | -0.23 | -0.18 | |||||||||||||||
| Common equity tier 1 capital | 13.24 | % | 13.47 | % | 13.44 | % | 13.26 | % | 13.42 | % | -0.23 | -0.18 | |||||||||||||||
| Tier 1 leverage capital ratio | 11.43 | % | 11.41 | % | 11.29 | % | 11.32 | % | 11.25 | % | 0.02 | 0.18 | |||||||||||||||
| (1) Preliminary ratios for September 30, 2024 | |||||||||||||||||||||||||||
Asset Quality
Loans 30 to 89 days past due and still accruing were
Criticized loans totaled
During the third quarter, the Bank moved the previously identified
Also, during the third quarter, the Bank downgraded to special mention two commercial real estate loans in the hospitality industry for
Nonperforming loans were
Nonperforming assets were
Gross charge-offs for the third quarter of 2024 were
The allowance for credit losses was
| As of or for the Three Months Ended (in thousands) | Amount Change | ||||||||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Q3-24 | Q3-24 | |||||||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | vs. Q2-24 | vs. Q3-23 | |||||||||||||||||||||
| Asset Quality Data and Ratios | |||||||||||||||||||||||||||
| Delinquent loans: | |||||||||||||||||||||||||||
| Loans, 30 to 89 days past due and still accruing | $ | 15,027 | $ | 13,844 | $ | 15,839 | $ | 10,263 | $ | 9,545 | $ | 1,183 | $ | 5,482 | |||||||||||||
| Delinquent loans to total loans | 0.24 | % | 0.22 | % | 0.26 | % | 0.17 | % | 0.16 | % | 0.02 | 0.08 | |||||||||||||||
| Criticized loans: | |||||||||||||||||||||||||||
| Special mention | $ | 131,575 | $ | 36,921 | $ | 62,317 | $ | 65,314 | $ | 76,473 | $ | 94,654 | $ | 55,102 | |||||||||||||
| Classified | 28,377 | 33,945 | 23,670 | 31,367 | 33,134 | (5,568 | ) | (4,757 | ) | ||||||||||||||||||
| Total criticized loans | $ | 159,952 | $ | 70,866 | $ | 85,987 | $ | 96,681 | $ | 109,607 | $ | 89,086 | $ | 50,345 | |||||||||||||
| Nonperforming assets: | |||||||||||||||||||||||||||
| Nonaccrual loans | $ | 15,248 | $ | 19,245 | $ | 14,025 | $ | 15,474 | $ | 15,783 | $ | (3,997 | ) | $ | (535 | ) | |||||||||||
| Loans 90 days or more past due and still accruing | 242 | - | - | - | - | 242 | 242 | ||||||||||||||||||||
| Nonperforming loans* | 15,490 | 19,245 | 14,025 | 15,474 | 15,783 | (3,755 | ) | (293 | ) | ||||||||||||||||||
| Other real estate owned, net | 772 | 772 | 117 | 117 | 117 | - | 655 | ||||||||||||||||||||
| Nonperforming assets** | $ | 16,262 | $ | 20,017 | $ | 14,142 | $ | 15,591 | $ | 15,900 | $ | (3,755 | ) | $ | 362 | ||||||||||||
| Nonperforming assets to assets* | 0.21 | % | 0.26 | % | 0.19 | % | 0.21 | % | 0.22 | % | -0.05 | -0.01 | |||||||||||||||
| Nonperforming loans to total loans | 0.25 | % | 0.31 | % | 0.23 | % | 0.25 | % | 0.26 | % | -0.06 | -0.01 | |||||||||||||||
| * Excludes a | |||||||||||||||||||||||||||
| ** Excludes repossessed personal property of | |||||||||||||||||||||||||||
| As of or for the Three Months Ended (in thousands) | |||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | |||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||
| Allowance for credit losses related to loans: | |||||||||||||||||||
| Balance at beginning of period | $ | 67,729 | $ | 68,270 | $ | 69,462 | $ | 67,313 | $ | 71,024 | |||||||||
| Credit loss expense (recovery) on loans | 2,312 | 1,248 | 404 | (2,880 | ) | 5,167 | |||||||||||||
| Net loan (charge-offs) recoveries | (878 | ) | (1,789 | ) | (1,596 | ) | 5,029 | (8,878 | ) | ||||||||||
| Balance at end of period | $ | 69,163 | $ | 67,729 | $ | 68,270 | $ | 69,462 | $ | 67,313 | |||||||||
| Net loan charge-offs (recoveries) to average loans (1) | 0.06 | % | 0.12 | % | 0.10 | % | -0.33 | % | 0.60 | % | |||||||||
| Allowance for credit losses to loans | 1.11 | % | 1.10 | % | 1.11 | % | 1.12 | % | 1.12 | % | |||||||||
| Allowance for credit losses related to off-balance sheet items: | |||||||||||||||||||
| Balance at beginning of period | $ | 2,010 | $ | 2,297 | $ | 2,474 | $ | 2,463 | $ | 2,476 | |||||||||
| Credit loss expense (recovery) on off-balance sheet items | (26 | ) | (287 | ) | (177 | ) | 11 | (13 | ) | ||||||||||
| Balance at end of period | $ | 1,984 | $ | 2,010 | $ | 2,297 | $ | 2,474 | $ | 2,463 | |||||||||
| Unused commitments to extend credit | $ | 739,975 | $ | 795,391 | $ | 792,769 | $ | 813,960 | $ | 848,886 | |||||||||
| (1) Annualized | |||||||||||||||||||
Corporate Developments
On July 25, 2024, Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2024 third quarter of
Earnings Conference Call
Hanmi Bank will host its third quarter 2024 earnings conference call today, October 22, 2024, at 2:00 p.m. PT (5:00 p.m. ET) to discuss these results. This call will also be webcast. To access the call, please dial 1-877-407-9039 before 2:00 p.m. PT, using access code Hanmi Bank. To listen to the call online, either live or archived, please visit Hanmi’s Investor Relations website at https://investors.hanmi.com/ where it will also be available for replay approximately one hour following the call.
About Hanmi Financial Corporation
Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 32 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.
Forward-Looking Statements
This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:
- a failure to maintain adequate levels of capital and liquidity to support our operations;
- general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;
- volatility and deterioration in the credit and equity markets;
- changes in consumer spending, borrowing and savings habits;
- availability of capital from private and government sources;
- demographic changes;
- competition for loans and deposits and failure to attract or retain loans and deposits;
- inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding;
- our ability to enter new markets successfully and capitalize on growth opportunities;
- the current or anticipated impact of military conflict, terrorism or other geopolitical events;
- the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;
- risks of natural disasters;
- legal proceedings and litigation brought against us;
- a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
- the failure to maintain current technologies;
- risks associated with Small Business Administration loans;
- failure to attract or retain key employees;
- our ability to access cost-effective funding;
- changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
- fluctuations in real estate values;
- changes in accounting policies and practices;
- changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
- the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests;
- strategic transactions we may enter into;
- the adequacy of and changes in the methodology for computing our allowance for credit losses;
- our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses;
- changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements;
- our ability to control expenses; and
- cyber security and fraud risks against our information technology and those of our third-party providers and vendors.
In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.
Investor Contacts:
Romolo (Ron) Santarosa
Senior Executive Vice President & Chief Financial Officer
213-427-5636
Lisa Fortuna
Investor Relations
Financial Profiles, Inc.
lfortuna@finprofiles.com
310-622-8251
Hanmi Financial Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)
| September 30, | June 30, | Percentage | September 30, | Percentage | |||||||||||||||
| 2024 | 2024 | Change | 2023 | Change | |||||||||||||||
| Assets | |||||||||||||||||||
| Cash and due from banks | $ | 287,767 | $ | 313,079 | -8.1 | % | $ | 289,006 | -0.4 | % | |||||||||
| Securities available for sale, at fair value | 908,921 | 877,638 | 3.6 | % | 817,242 | 11.2 | % | ||||||||||||
| Loans held for sale, at the lower of cost or fair value | 54,336 | 10,467 | 419.1 | % | 11,767 | 361.8 | % | ||||||||||||
| Loans receivable, net of allowance for credit losses | 6,188,581 | 6,108,630 | 1.3 | % | 5,953,472 | 3.9 | % | ||||||||||||
| Accrued interest receivable | 21,955 | 23,958 | -8.4 | % | 20,715 | 6.0 | % | ||||||||||||
| Premises and equipment, net | 21,371 | 21,955 | -2.7 | % | 20,707 | 3.2 | % | ||||||||||||
| Customers' liability on acceptances | 67 | 551 | -87.8 | % | 1,386 | -95.2 | % | ||||||||||||
| Servicing assets | 6,683 | 6,836 | -2.2 | % | 7,156 | -6.6 | % | ||||||||||||
| Goodwill and other intangible assets, net | 11,031 | 11,048 | -0.2 | % | 11,131 | -0.9 | % | ||||||||||||
| Federal Home Loan Bank ("FHLB") stock, at cost | 16,385 | 16,385 | 0.0 | % | 16,385 | 0.0 | % | ||||||||||||
| Bank-owned life insurance | 56,851 | 56,534 | 0.6 | % | 56,364 | 0.9 | % | ||||||||||||
| Prepaid expenses and other assets | 138,351 | 139,266 | -0.7 | % | 144,809 | -4.5 | % | ||||||||||||
| Total assets | $ | 7,712,299 | $ | 7,586,347 | 1.7 | % | $ | 7,350,140 | 4.9 | % | |||||||||
| Liabilities and Stockholders' Equity | |||||||||||||||||||
| Liabilities: | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Noninterest-bearing | $ | 2,051,790 | $ | 1,959,963 | 4.7 | % | $ | 2,161,238 | -5.1 | % | |||||||||
| Interest-bearing | 4,351,431 | 4,369,377 | -0.4 | % | 4,098,834 | 6.2 | % | ||||||||||||
| Total deposits | 6,403,221 | 6,329,340 | 1.2 | % | 6,260,072 | 2.3 | % | ||||||||||||
| Accrued interest payable | 52,613 | 47,699 | 10.3 | % | 50,286 | 4.6 | % | ||||||||||||
| Bank's liability on acceptances | 67 | 551 | -87.8 | % | 1,386 | -95.2 | % | ||||||||||||
| Borrowings | 300,000 | 292,500 | 2.6 | % | 162,500 | 84.6 | % | ||||||||||||
| Subordinated debentures | 130,478 | 130,318 | 0.1 | % | 129,860 | 0.5 | % | ||||||||||||
| Accrued expenses and other liabilities | 89,211 | 78,880 | 13.1 | % | 82,677 | 7.9 | % | ||||||||||||
| Total liabilities | 6,975,590 | 6,879,288 | 1.4 | % | 6,686,781 | 4.3 | % | ||||||||||||
| Stockholders' equity: | |||||||||||||||||||
| Common stock | 34 | 34 | 0.0 | % | 34 | 0.0 | % | ||||||||||||
| Additional paid-in capital | 589,567 | 588,647 | 0.2 | % | 586,169 | 0.6 | % | ||||||||||||
| Accumulated other comprehensive income | (55,140 | ) | (78,000 | ) | 29.3 | % | (99,422 | ) | 44.5 | % | |||||||||
| Retained earnings | 340,718 | 333,392 | 2.2 | % | 308,007 | 10.6 | % | ||||||||||||
| Less treasury stock | (138,470 | ) | (137,014 | ) | -1.1 | % | (131,429 | ) | -5.4 | % | |||||||||
| Total stockholders' equity | 736,709 | 707,059 | 4.2 | % | 663,359 | 11.1 | % | ||||||||||||
| Total liabilities and stockholders' equity | $ | 7,712,299 | $ | 7,586,347 | 1.7 | % | $ | 7,350,140 | 4.9 | % | |||||||||
Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except share and per share data)
| Three Months Ended | ||||||||||||||||||||
| September 30, | June 30, | Percentage | September 30, | Percentage | ||||||||||||||||
| 2024 | 2024 | Change | 2023 | Change | ||||||||||||||||
| Interest and dividend income: | ||||||||||||||||||||
| Interest and fees on loans receivable | $ | 92,182 | $ | 90,752 | 1.6 | % | $ | 85,398 | 7.9 | % | ||||||||||
| Interest on securities | 5,523 | 5,238 | 5.4 | % | 4,204 | 31.4 | % | |||||||||||||
| Dividends on FHLB stock | 356 | 357 | -0.3 | % | 317 | 12.3 | % | |||||||||||||
| Interest on deposits in other banks | 2,356 | 2,313 | 1.9 | % | 4,153 | -43.3 | % | |||||||||||||
| Total interest and dividend income | 100,417 | 98,660 | 1.8 | % | 94,072 | 6.7 | % | |||||||||||||
| Interest expense: | ||||||||||||||||||||
| Interest on deposits | 47,153 | 46,495 | 1.4 | % | 36,818 | 28.1 | % | |||||||||||||
| Interest on borrowings | 1,561 | 1,896 | -17.7 | % | 753 | 107.3 | % | |||||||||||||
| Interest on subordinated debentures | 1,652 | 1,649 | 0.2 | % | 1,646 | 0.4 | % | |||||||||||||
| Total interest expense | 50,366 | 50,040 | 0.7 | % | 39,217 | 28.4 | % | |||||||||||||
| Net interest income before credit loss expense | 50,051 | 48,620 | 2.9 | % | 54,855 | -8.8 | % | |||||||||||||
| Credit loss expense | 2,286 | 961 | 137.9 | % | 5,154 | -55.6 | % | |||||||||||||
| Net interest income after credit loss expense | 47,765 | 47,659 | 0.2 | % | 49,701 | -3.9 | % | |||||||||||||
| Noninterest income: | ||||||||||||||||||||
| Service charges on deposit accounts | 2,311 | 2,429 | -4.9 | % | 2,605 | -11.3 | % | |||||||||||||
| Trade finance and other service charges and fees | 1,254 | 1,277 | -1.8 | % | 1,155 | 8.6 | % | |||||||||||||
| Gain on sale of Small Business Administration ("SBA") loans | 1,544 | 1,644 | -6.1 | % | 1,172 | 31.7 | % | |||||||||||||
| Other operating income | 3,329 | 2,707 | 23.0 | % | 6,296 | -47.1 | % | |||||||||||||
| Total noninterest income | 8,438 | 8,057 | 4.7 | % | 11,228 | -24.8 | % | |||||||||||||
| Noninterest expense: | ||||||||||||||||||||
| Salaries and employee benefits | 20,851 | 20,434 | 2.0 | % | 20,361 | 2.4 | % | |||||||||||||
| Occupancy and equipment | 4,499 | 4,607 | -2.3 | % | 4,825 | -6.8 | % | |||||||||||||
| Data processing | 3,839 | 3,686 | 4.2 | % | 3,490 | 10.0 | % | |||||||||||||
| Professional fees | 1,492 | 1,749 | -14.7 | % | 1,568 | -4.8 | % | |||||||||||||
| Supplies and communications | 538 | 570 | -5.6 | % | 552 | -2.5 | % | |||||||||||||
| Advertising and promotion | 631 | 669 | -5.7 | % | 534 | 18.2 | % | |||||||||||||
| Other operating expenses | 3,230 | 3,561 | -9.3 | % | 2,915 | 10.8 | % | |||||||||||||
| Total noninterest expense | 35,080 | 35,276 | -0.6 | % | 34,245 | 2.4 | % | |||||||||||||
| Income before tax | 21,123 | 20,440 | 3.3 | % | 26,684 | -20.8 | % | |||||||||||||
| Income tax expense | 6,231 | 5,989 | 4.0 | % | 7,888 | -21.0 | % | |||||||||||||
| Net income | $ | 14,892 | $ | 14,451 | 3.1 | % | $ | 18,796 | -20.8 | % | ||||||||||
| Basic earnings per share: | $ | 0.49 | $ | 0.48 | $ | 0.62 | ||||||||||||||
| Diluted earnings per share: | $ | 0.49 | $ | 0.48 | $ | 0.62 | ||||||||||||||
| Weighted-average shares outstanding: | ||||||||||||||||||||
| Basic | 29,968,004 | 30,055,913 | 30,251,961 | |||||||||||||||||
| Diluted | 30,033,679 | 30,133,646 | 30,292,872 | |||||||||||||||||
| Common shares outstanding | 30,196,755 | 30,272,110 | 30,410,582 | |||||||||||||||||
Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except share and per share data)
| Nine Months Ended | |||||||||||
| September 30, | September 30, | Percentage | |||||||||
| 2024 | 2023 | Change | |||||||||
| Interest and dividend income: | |||||||||||
| Interest and fees on loans receivable | $ | 274,608 | $ | 249,888 | 9.9 | % | |||||
| Interest on securities | 15,717 | 12,356 | 27.2 | % | |||||||
| Dividends on FHLB stock | 1,075 | 888 | 21.1 | % | |||||||
| Interest on deposits in other banks | 7,270 | 9,012 | -19.3 | % | |||||||
| Total interest and dividend income | 298,670 | 272,144 | 9.7 | % | |||||||
| Interest expense: | |||||||||||
| Interest on deposits | 139,286 | 94,431 | 47.5 | % | |||||||
| Interest on borrowings | 5,112 | 4,755 | 7.5 | % | |||||||
| Interest on subordinated debentures | 4,948 | 4,828 | 2.5 | % | |||||||
| Total interest expense | 149,346 | 104,014 | 43.6 | % | |||||||
| Net interest income before credit loss expense | 149,324 | 168,130 | -11.2 | % | |||||||
| Credit loss expense | 3,474 | 7,210 | -51.8 | % | |||||||
| Net interest income after credit loss expense | 145,850 | 160,920 | -9.4 | % | |||||||
| Noninterest income: | |||||||||||
| Service charges on deposit accounts | 7,189 | 7,756 | -7.3 | % | |||||||
| Trade finance and other service charges and fees | 3,945 | 3,586 | 10.0 | % | |||||||
| Gain on sale of Small Business Administration ("SBA") loans | 4,669 | 4,253 | 9.8 | % | |||||||
| Other operating income | 8,425 | 11,904 | -29.2 | % | |||||||
| Total noninterest income | 24,228 | 27,499 | -11.9 | % | |||||||
| Noninterest expense: | |||||||||||
| Salaries and employee benefits | 62,870 | 61,336 | 2.5 | % | |||||||
| Occupancy and equipment | 13,643 | 13,737 | -0.7 | % | |||||||
| Data processing | 11,076 | 10,208 | 8.5 | % | |||||||
| Professional fees | 5,134 | 4,278 | 20.0 | % | |||||||
| Supplies and communications | 1,710 | 1,866 | -8.4 | % | |||||||
| Advertising and promotion | 2,207 | 2,114 | 4.4 | % | |||||||
| Other operating expenses | 10,160 | 7,777 | 30.6 | % | |||||||
| Total noninterest expense | 106,800 | 101,316 | 5.4 | % | |||||||
| Income before tax | 63,278 | 87,103 | -27.4 | % | |||||||
| Income tax expense | 18,772 | 25,695 | -26.9 | % | |||||||
| Net income | $ | 44,506 | $ | 61,408 | -27.5 | % | |||||
| Basic earnings per share: | $ | 1.47 | $ | 2.01 | |||||||
| Diluted earnings per share: | $ | 1.47 | $ | 2.01 | |||||||
| Weighted-average shares outstanding: | |||||||||||
| Basic | 30,048,748 | 30,296,991 | |||||||||
| Diluted | 30,117,269 | 30,338,678 | |||||||||
| Common shares outstanding | 30,196,755 | 30,410,582 | |||||||||
Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
(Dollars in thousands)
| Three Months Ended | ||||||||||||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | ||||||||||||||||||||||||||||||
| Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||||||||
| Average | Income / | Yield / | Average | Income / | Yield / | Average | Income / | Yield / | ||||||||||||||||||||||||
| Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||||||
| Loans receivable (1) | $ | 6,112,324 | $ | 92,182 | 6.00 | % | $ | 6,089,440 | $ | 90,752 | 5.99 | % | $ | 5,915,423 | $ | 85,398 | 5.73 | % | ||||||||||||||
| Securities (2) | 986,041 | 5,523 | 2.27 | % | 979,671 | 5,238 | 2.17 | % | 955,473 | 4,204 | 1.79 | % | ||||||||||||||||||||
| FHLB stock | 16,385 | 356 | 8.65 | % | 16,385 | 357 | 8.77 | % | 16,385 | 317 | 7.67 | % | ||||||||||||||||||||
| Interest-bearing deposits in other banks | 183,027 | 2,356 | 5.12 | % | 180,177 | 2,313 | 5.16 | % | 317,498 | 4,153 | 5.19 | % | ||||||||||||||||||||
| Total interest-earning assets | 7,297,777 | 100,417 | 5.48 | % | 7,265,673 | 98,660 | 5.46 | % | 7,204,779 | 94,072 | 5.19 | % | ||||||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||||||||||
| Cash and due from banks | 54,843 | 55,442 | 59,994 | |||||||||||||||||||||||||||||
| Allowance for credit losses | (67,906 | ) | (67,908 | ) | (70,173 | ) | ||||||||||||||||||||||||||
| Other assets | 251,421 | 252,410 | 240,145 | |||||||||||||||||||||||||||||
| Total assets | $ | 7,536,135 | $ | 7,505,617 | $ | 7,434,745 | ||||||||||||||||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||||||||
| Demand: interest-bearing | $ | 83,647 | $ | 31 | 0.15 | % | $ | 85,443 | $ | 32 | 0.15 | % | $ | 94,703 | $ | 32 | 0.13 | % | ||||||||||||||
| Money market and savings | 1,885,799 | 17,863 | 3.77 | % | 1,845,870 | 17,324 | 3.77 | % | 1,601,826 | 12,485 | 3.09 | % | ||||||||||||||||||||
| Time deposits | 2,427,737 | 29,259 | 4.79 | % | 2,453,154 | 29,139 | 4.78 | % | 2,438,112 | 24,301 | 3.95 | % | ||||||||||||||||||||
| Total interest-bearing deposits | 4,397,183 | 47,153 | 4.27 | % | 4,384,467 | 46,495 | 4.27 | % | 4,134,641 | 36,818 | 3.53 | % | ||||||||||||||||||||
| Borrowings | 143,479 | 1,561 | 4.33 | % | 169,525 | 1,896 | 4.50 | % | 120,381 | 753 | 2.48 | % | ||||||||||||||||||||
| Subordinated debentures | 130,403 | 1,652 | 5.07 | % | 130,239 | 1,649 | 5.07 | % | 129,780 | 1,646 | 5.07 | % | ||||||||||||||||||||
| Total interest-bearing liabilities | 4,671,065 | 50,366 | 4.29 | % | 4,684,231 | 50,040 | 4.30 | % | 4,384,802 | 39,217 | 3.55 | % | ||||||||||||||||||||
| Noninterest-bearing liabilities and equity: | ||||||||||||||||||||||||||||||||
| Demand deposits: noninterest-bearing | 1,908,833 | 1,883,765 | 2,136,156 | |||||||||||||||||||||||||||||
| Other liabilities | 171,987 | 162,543 | 159,127 | |||||||||||||||||||||||||||||
| Stockholders' equity | 784,250 | 775,078 | 754,660 | |||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 7,536,135 | $ | 7,505,617 | $ | 7,434,745 | ||||||||||||||||||||||||||
| Net interest income | $ | 50,051 | $ | 48,620 | $ | 54,855 | ||||||||||||||||||||||||||
| Cost of deposits | 2.97 | % | 2.98 | % | 2.33 | % | ||||||||||||||||||||||||||
| Net interest spread (taxable equivalent basis) | 1.19 | % | 1.16 | % | 1.64 | % | ||||||||||||||||||||||||||
| Net interest margin (taxable equivalent basis) | 2.74 | % | 2.69 | % | 3.03 | % | ||||||||||||||||||||||||||
| (1) Includes average loans held for sale | ||||||||||||||||||||||||||||||||
| (2) Income calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented. | ||||||||||||||||||||||||||||||||
Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
(Dollars in thousands)
| Nine Months Ended | |||||||||||||||||||||
| September 30, 2024 | September 30, 2023 | ||||||||||||||||||||
| Interest | Average | Interest | Average | ||||||||||||||||||
| Average | Income / | Yield / | Average | Income / | Yield / | ||||||||||||||||
| Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||
| Assets | |||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||
| Loans receivable (1) | $ | 6,113,214 | $ | 274,608 | 6.00 | % | $ | 5,933,525 | $ | 249,888 | 5.63 | % | |||||||||
| Securities (2) | 978,439 | 15,717 | 2.17 | % | 969,146 | 12,356 | 1.73 | % | |||||||||||||
| FHLB stock | 16,385 | 1,076 | 8.77 | % | 16,385 | 888 | 7.25 | % | |||||||||||||
| Interest-bearing deposits in other banks | 188,290 | 7,269 | 5.16 | % | 247,581 | 9,012 | 4.87 | % | |||||||||||||
| Total interest-earning assets | 7,296,328 | 298,670 | 5.47 | % | 7,166,637 | 272,144 | 5.08 | % | |||||||||||||
| Noninterest-earning assets: | |||||||||||||||||||||
| Cash and due from banks | 56,217 | 62,354 | |||||||||||||||||||
| Allowance for credit losses | (68,305 | ) | (71,236 | ) | |||||||||||||||||
| Other assets | 249,517 | 237,111 | |||||||||||||||||||
| Total assets | $ | 7,533,757 | $ | 7,394,866 | |||||||||||||||||
| Liabilities and Stockholders' Equity | |||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| Deposits: | |||||||||||||||||||||
| Demand: interest-bearing | $ | 85,158 | $ | 92 | 0.14 | % | $ | 100,997 | $ | 88 | 0.12 | % | |||||||||
| Money market and savings | 1,849,053 | 51,740 | 3.74 | % | 1,506,776 | 29,687 | 2.63 | % | |||||||||||||
| Time deposits | 2,462,779 | 87,454 | 4.74 | % | 2,355,923 | 64,656 | 3.67 | % | |||||||||||||
| Total interest-bearing deposits | 4,396,990 | 139,286 | 4.23 | % | 3,963,696 | 94,431 | 3.19 | % | |||||||||||||
| Borrowings | 158,419 | 5,112 | 4.31 | % | 194,530 | 4,755 | 3.27 | % | |||||||||||||
| Subordinated debentures | 130,244 | 4,948 | 5.06 | % | 129,632 | 4,828 | 4.97 | % | |||||||||||||
| Total interest-bearing liabilities | 4,685,653 | 149,346 | 4.26 | % | 4,287,858 | 104,014 | 3.24 | % | |||||||||||||
| Noninterest-bearing liabilities and equity: | |||||||||||||||||||||
| Demand deposits: noninterest-bearing | 1,904,611 | 2,223,891 | |||||||||||||||||||
| Other liabilities | 166,372 | 140,070 | |||||||||||||||||||
| Stockholders' equity | 777,121 | 743,047 | |||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 7,533,757 | $ | 7,394,866 | |||||||||||||||||
| Net interest income | $ | 149,324 | $ | 168,130 | |||||||||||||||||
| Cost of deposits | 2.95 | % | 2.04 | % | |||||||||||||||||
| Net interest spread (taxable equivalent basis) | 1.21 | % | 1.84 | % | |||||||||||||||||
| Net interest margin (taxable equivalent basis) | 2.74 | % | 3.14 | % | |||||||||||||||||
| (1) Includes average loans held for sale | |||||||||||||||||||||
| (2) Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented. | |||||||||||||||||||||
Non-GAAP Financial Measures
Tangible Common Equity to Tangible Assets Ratio
Tangible common equity to tangible assets ratio is supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles (“GAAP”). This non-GAAP measure is used by management in the analysis of Hanmi’s capital strength. Tangible common equity is calculated by subtracting goodwill and other intangible assets from stockholders’ equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from stockholders’ equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Hanmi. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.
The following table reconciles this non-GAAP performance measure to the GAAP performance measure for the periods indicated:
Tangible Common Equity to Tangible Assets Ratio (Unaudited)
(In thousands, except share, per share data and ratios)
| September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
| Hanmi Financial Corporation | 2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||||
| Assets | $ | 7,712,299 | $ | 7,586,347 | $ | 7,512,046 | $ | 7,570,341 | $ | 7,350,140 | |||||||||
| Less goodwill and other intangible assets | (11,031 | ) | (11,048 | ) | (11,074 | ) | (11,099 | ) | (11,131 | ) | |||||||||
| Tangible assets | $ | 7,701,268 | $ | 7,575,299 | $ | 7,500,972 | $ | 7,559,242 | $ | 7,339,009 | |||||||||
| Stockholders' equity (1) | $ | 736,709 | $ | 707,059 | $ | 703,100 | $ | 701,891 | $ | 663,359 | |||||||||
| Less goodwill and other intangible assets | (11,031 | ) | (11,048 | ) | (11,074 | ) | (11,099 | ) | (11,131 | ) | |||||||||
| Tangible stockholders' equity (1) | $ | 725,678 | $ | 696,011 | $ | 692,026 | $ | 690,792 | $ | 652,228 | |||||||||
| Stockholders' equity to assets | 9.55 | % | 9.32 | % | 9.36 | % | 9.27 | % | 9.03 | % | |||||||||
| Tangible common equity to tangible assets (1) | 9.42 | % | 9.19 | % | 9.23 | % | 9.14 | % | 8.89 | % | |||||||||
| Common shares outstanding | 30,196,755 | 30,272,110 | 30,276,358 | 30,368,655 | 30,410,582 | ||||||||||||||
| Tangible common equity per common share | $ | 24.03 | $ | 22.99 | $ | 22.86 | $ | 22.75 | $ | 21.45 | |||||||||
| (1) There were no preferred shares outstanding at the periods indicated. | |||||||||||||||||||
FAQ
What were Hanmi's earnings for Q3 2024?
How did Hanmi's net interest margin perform in Q3 2024?
What was the growth in Hanmi's loan production in Q3 2024?
How did Hanmi's deposits perform in Q3 2024?
What was Hanmi's credit loss expense in Q3 2024?
How did Hanmi's stockholders' equity change in Q3 2024?
