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
$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 return on average assets for the third quarter of 2024
was 0.79% and the return on average equity was 7.55%, compared with
a return on average assets of 0.77% and the return on average
equity of 7.50% for the second quarter of 2024.
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 2.74% driven by higher yields on
interest-earning assets and lower funding costs. Loans grew by 2%
driven by a 27% increase in loan production and total deposits were
up led by 5% growth in noninterest-bearing demand deposits. These
results reflect the continued success of our relationship banking
model and our portfolio diversification strategy.”
“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, or 9.4%, increase in
pretax, preprovision income, propelled by a 2.9% increase in net
interest income.
- Loans receivable
were $6.26 billion at September 30, 2024, up 1.3% from the end of
the second quarter of 2024, driven by a 27% increase in loan
production to $347.8 million with a weighted average interest rate
of 7.92%.
- Deposits were
$6.40 billion at September 30, 2024, up 1.2% from the end of the
second quarter of 2024; noninterest-bearing demand deposits were
32.0% of total deposits. During the quarter, noninterest bearing
demand deposits grew 4.7%, while time deposits declined 3.2% from
the prior quarter.
- Net interest
income for the third quarter was $50.1 million, up 2.9% from the
second quarter of 2024, driven by strong operational performance.
Net interest margin (taxable equivalent) expanded five basis points
to 2.74%, as the average yield on loans increased to 6.00%, while
the cost of interest-bearing deposits remained unchanged at
4.27%.
- Noninterest expense was $35.1
million for the third quarter, down 0.6% 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, or 1.11% 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 $50.1 million, up 2.9%
from $48.6 million for the second quarter of 2024. The increase was
primarily due to an increase in loan interest income. The increase
in loan interest income was a result of increases in loan yields
and average balances. The yield on average loans for the third
quarter increased slightly to 6.00% from 5.99% for the second
quarter of 2024. Average loans were $6.11 billion for the third
quarter of 2024, up 0.4% from $6.09 billion for the second quarter.
The cost of interest-bearing deposits was 4.27% for the third
quarter of 2024, unchanged from the prior quarter. Average
interest-bearing deposits were $4.40 billion for the third
quarter, up 0.3%, from $4.38 billion for the prior quarter. Net
interest margin (taxable equivalent) for the third quarter was
2.74%, compared with 2.69% for the second quarter of 2024.
| |
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
$2.3 million, compared with $1.0 million for the second quarter of
2024. Third quarter credit loss expense included a $2.3 million
credit loss expense for loan losses. Third quarter net loan
charge-offs were $0.9 million, compared with second quarter net
loan charge-offs of $1.8 million. Third quarter net loan
charge-offs included a $1.1 million charge-off on a nonaccrual loan
transferred to held-for-sale and a $1.7 million recovery on a
nonaccrual loan.
Noninterest income for the third quarter
increased $0.3 million to $8.4 million, or 4.7%, from $8.1 million
for the second quarter of 2024. Third quarter noninterest income
included a $0.9 million gain from the sale and leaseback of a
branch property, while second quarter noninterest income included a
$0.3 million death benefit on bank-owned life insurance. Gains on
sales of SBA loans were $1.5 million for the third quarter of 2024,
compared with $1.6 million for the second quarter of 2024. The
volume of SBA loans sold in the third quarter decreased to $23.0
million, from $23.5 million for the second quarter of 2024, while
trade premiums were 8.54% for the third quarter of 2024, unchanged
from the second quarter. Mortgage loans sold in the third quarter
were $20.9 million, with a premium of 2.32%, compared with $19.5
million and 2.00% for the second quarter, resulting in income of
$0.3 million for the third quarter, compared with $0.4 million for
the prior quarter.
| |
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 $0.2 million to $35.1 million from $35.3 million for
the second quarter of 2024. The decrease reflects primarily the
absence of the $0.3 million branch consolidation expense recognized
in the second quarter of 2024. The efficiency ratio for the third
quarter was 60.0%, compared with 62.2% for the second quarter of
2024.
|
|
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
$6.2 million for the third quarter of 2024, compared with $6.0
million for the second quarter of 2024, representing an effective
tax rate of 29.5% and 29.3%, respectively.
Financial PositionTotal assets
at September 30, 2024 increased 1.7%, or $126.0 million, to $7.71
billion from $7.59 billion at June 30, 2024. The sequential quarter
increase was due to a $125.3 million increase in loans and loans
held-for-sale, and a $31.3 million increase in securities, offset
partially by a $25.3 million decrease in cash and due from
banks.
Loans receivable, before allowance for credit
losses, were $6.26 billion at September 30, 2024, up from $6.18
billion at June 30, 2024.
Loans held-for-sale were $54.3 million at
September 30, 2024, up from $10.5 million at June 30, 2024. At
the end of the third quarter, loans held-for-sale consisted of $8.8
million of the guaranteed portion of SBA 7(a) loans, $18.3 million
of residential mortgage loans and the $27.2 million nonaccrual
loan. Subsequent to the end of the third quarter, the Bank
completed the sale of this nonaccrual loan.
| |
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 $347.8 million for the
third quarter of 2024 at an average rate of 7.92%, while payoffs
were $77.6 million during the quarter at an average rate of
6.63%.
Commercial real estate loan production for the
third quarter of 2024 was $110.2 million. Commercial and industrial
loan production was $105.1 million, SBA loan production was $51.6
million, equipment finance production was $40.1 million, and
residential mortgage loan production was $40.8 million.
| |
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 $6.40 billion at the end of the
third quarter of 2024, up $73.9 million, or 1.2%, from $6.33
billion at the end of the prior quarter. Driving the change was a
$91.8 million increase in noninterest-bearing demand deposits and a
$64.0 million increase in money market and savings deposits,
partially offset by a $78.3 million decrease in time deposits.
Noninterest-bearing demand deposits represented 32.0% of total
deposits at September 30, 2024 and the loan-to-deposit ratio was
97.7%.
|
|
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
$736.7 million, up $29.6 million from $707.1 million at June 30,
2024. The increase was due to third quarter net income, net of
dividends paid, adding $7.3 million to stockholders’ equity for the
period. Additionally, there was a $20.7 million decrease in
unrealized after-tax losses on securities available for sale and a
$2.2 million decrease in unrealized after-tax losses on cash flow
hedges, all due to changes in interest rates during the third
quarter of 2024. Hanmi also repurchased 75,000 shares of common
stock, or $1.4 million, during the quarter at an average share
price of $19.10. At September 30, 2024, 1,255,000 shares remain
under Hanmi’s share repurchase program. Tangible common
stockholders’ equity was $725.7 million, or 9.42% of tangible
assets, at September 30, 2024, compared with $696.0 million, or
9.19% of tangible assets at the end of the prior quarter. Please
refer to the Non-GAAP Financial Measures section below for more
information.
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 11.95% and its
total risk-based capital ratio was 15.04%, compared with 12.11% and
15.24%, respectively, at the end of the prior quarter.
| |
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 0.24% of loans at the end of
the third quarter of 2024, compared with 0.22% at the end of the
prior quarter.
Criticized loans totaled $160.0 million at
September 30, 2024, up from $70.9 million at the end of the second
quarter of 2024.
During the third quarter, the Bank moved the
previously identified $28.3 million completed construction loan for
a memory-care and assisted-living facility from the special mention
category to the held-for-sale nonaccrual category. In addition, the
Bank recognized a $1.1 million charge-off on this loan. Subsequent
to the end of the third quarter, the Bank completed the sale of
this nonaccrual loan.
Also, during the third quarter, the Bank
downgraded to special mention two commercial real estate loans in
the hospitality industry for $109.7 million and a commercial and
industrial loan in the health care industry for $20.1
million. Pay-offs of $8.1 million decreased criticized loans
(and classified loans), while upgrades of $6.1 million also
decreased criticized loans (and special mention loans). Offsetting
the decrease in classified loans were additions of $2.5
million.
Nonperforming loans were $15.5 million at
September 30, 2024, down from $19.2 million at the end of the prior
quarter. The decrease primarily reflects pay-offs of $6.8 million,
where the pay-off of a previously identified $3.9 million
nonperforming loan resulted in a $1.7 million recovery.
Offsetting the decrease were additions of $3.1 million.
Nonperforming assets were $16.3 million at the
end of the third quarter of 2024, down from $20.0 million at the
end of the prior quarter. As a percentage of total assets,
nonperforming assets were 0.21% at September 30, 2024, and 0.26% at
the end of the prior quarter.
Gross charge-offs for the third quarter of 2024
were $3.8 million, compared with $2.3 million for the preceding
quarter. Charge-offs included $1.1 million on the previously
identified $28.3 million completed construction
loan. Recoveries of previously charged-off loans were $2.9
million in the third quarter of 2024, and included a $1.7 million
recovery on a previously identified $3.9 million commercial loan in
the health care industry. As a result, net charge-offs were $0.9
million for the third quarter of 2024, compared with net
charge-offs of $1.8 million for the prior quarter.
The allowance for credit losses was $69.2
million at September 30, 2024, compared with $67.7 million at June
30, 2024. Specific allowances for loans decreased $1.6 million,
while the allowance for quantitative and qualitative considerations
increased $3.1 million. The ratio of the allowance for credit
losses to loans was 1.11% at September 30, 2024 and 1.10% at June
30, 2024.
| |
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
$27.2 million nonperforming loan
held-for-sale. |
|
| ** Excludes
repossessed personal property of $1.2 million, $1.2 million, $1.3
million, $1.3 million, and $1.3 million as of Q3-24, Q2-24, Q1-24,
Q4-23, and Q3-23, respectively |
|
| |
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 DevelopmentsOn July
25, 2024, Hanmi’s Board of Directors declared a cash dividend on
its common stock for the 2024 third quarter of $0.25 per share.
Hanmi paid the dividend on August 21, 2024, to stockholders of
record as of the close of business on August 5, 2024.
Earnings Conference CallHanmi
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) SantarosaSenior
Executive Vice President & Chief Financial
Officer213-427-5636
Lisa FortunaInvestor RelationsFinancial Profiles,
Inc.lfortuna@finprofiles.com 310-622-8251
Hanmi Financial Corporation and
SubsidiariesConsolidated 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. |
|
Hanmi Financial (NASDAQ:HAFC)
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From Oct 2024 to Nov 2024
Hanmi Financial (NASDAQ:HAFC)
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From Nov 2023 to Nov 2024
