Hanmi Financial Corporation (NASDAQ: HAFC, or
“Hanmi”), the parent company of Hanmi Bank (the “Bank”),
today reported financial results for the fourth quarter of 2024 and
full year.
Net income for the fourth quarter of 2024 was
$17.7 million, or $0.58 per diluted share, compared with $14.9
million, or $0.49 per diluted share, for the third quarter of 2024.
The return on average assets for the fourth quarter of 2024 was
0.93% and the return on average equity was 8.89%, compared with a
return on average assets of 0.79% and a return on average equity of
7.55% for the third quarter of 2024.
For the full year of 2024, net income was $62.2
million, or $2.05 per diluted share, compared with $80.0 million,
or $2.62 per diluted share, for 2023. The return on average assets
for 2024 was 0.83% and the return on average equity was 7.97%.
CEO Commentary“Hanmi achieved
exceptional results in the fourth quarter, delivering our best
quarterly performance of the year and closing 2024 with strong
momentum,” said Bonnie Lee, President and Chief Executive Officer.
“Our team’s outstanding execution generated significant earnings
growth fueled by our net interest margin expansion of 17 basis
points to 2.91%, disciplined expense management, and vigilant
credit administration. These robust results highlight the strength
of our relationship-driven banking model.”
“For the full year, we had a number of key
accomplishments to advance our growth and diversification strategy.
We delivered 16% growth in our C&I loan portfolio, driven
primarily by the strong contribution from our Corporate Korea
initiative. Noninterest-bearing demand deposits grew by 5% and now
represent 33% of our total deposits. Finally, through our proactive
monitoring of the portfolio and our successful resolution efforts,
we further improved asset quality with nonperforming assets as a
percentage of total assets decreasing to 0.19%.”
“With our strong capital foundation, we are well
positioned to execute on our growth strategy. Our performance is
the result of our team’s unwavering dedication to serving our
customers and the communities in which we operate. I want to thank
each of them for their continued commitment to deliver long-term
value for our shareholders,” concluded Lee.
Fourth Quarter 2024 Highlights:
- Fourth quarter net
income was $17.7 million, or $0.58 per diluted share, up 18.8% from
$14.9 million, or $0.49 per diluted share for the third quarter of
2024. The increase reflects a $3.4 million, or 6.8%, increase in
net interest income, primarily due to a decrease in interest
expense on deposits.
- Loans receivable
were $6.25 billion at December 31, 2024, essentially unchanged from
the end of the third quarter of 2024; loan production for the
fourth quarter was $339.0 million, with a weighted average interest
rate of 7.37%, compared with loan production for the third quarter
of $347.8 million, with a weighted average interest rate of
7.92%.
- Deposits were
$6.44 billion at December 31, 2024, up 0.5% from the end of the
third quarter of 2024; noninterest-bearing demand deposits were
32.6% of total deposits. During the quarter, noninterest-bearing
demand deposits grew 2.2%, while time deposits declined 2.0% from
the prior quarter.
- Net interest
income for the fourth quarter was $53.4 million, up 6.8% from the
third quarter of 2024. Net interest margin (taxable equivalent)
increased 17 basis points to 2.91%; the average yield on loans
declined three basis points to 5.97%, while the cost of
interest-bearing deposits fell 31 basis points to 3.96%.
- Credit loss expense for the fourth
quarter was $0.9 million, a decrease from $2.3 million for the
prior quarter. The allowance for credit losses increased $1.0
million to $70.1 million at December 31, 2024, or 1.12% of loans.
For the fourth quarter, net loan recoveries were $0.1 million.
- Asset quality
remained strong, as nonperforming loans declined by 7.9% to $14.3
million, or 0.23% of loans, which included pay-offs of $1.8
million, while criticized loans increased to $165.3 million, as
special mention loans increased to $139.6 million and classified
loans fell to $25.7 million.
For more information about Hanmi, please see the
Q4 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 |
|
|
December 31, |
September 30, |
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
Q4-24 |
|
|
Q4-24 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
vs. Q3-24 |
|
|
vs. Q4-23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
17,695 |
|
|
$ |
14,892 |
|
|
$ |
14,451 |
|
|
$ |
15,164 |
|
|
$ |
18,633 |
|
|
$ |
2,803 |
|
|
$ |
(938 |
) |
Net income per diluted common
share |
$ |
0.58 |
|
|
$ |
0.49 |
|
|
$ |
0.48 |
|
|
$ |
0.50 |
|
|
$ |
0.61 |
|
|
$ |
0.09 |
|
|
$ |
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
7,677,925 |
|
|
$ |
7,712,299 |
|
|
$ |
7,586,347 |
|
|
$ |
7,512,046 |
|
|
$ |
7,570,341 |
|
|
$ |
(34,374 |
) |
|
$ |
107,584 |
|
Loans receivable |
$ |
6,251,377 |
|
|
$ |
6,257,744 |
|
|
$ |
6,176,359 |
|
|
$ |
6,177,840 |
|
|
$ |
6,182,434 |
|
|
$ |
(6,367 |
) |
|
$ |
68,943 |
|
Deposits |
$ |
6,435,776 |
|
|
$ |
6,403,221 |
|
|
$ |
6,329,340 |
|
|
$ |
6,376,060 |
|
|
$ |
6,280,574 |
|
|
$ |
32,555 |
|
|
$ |
155,202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.93 |
% |
|
|
0.79 |
% |
|
|
0.77 |
% |
|
|
0.81 |
% |
|
|
0.99 |
% |
|
|
0.14 |
|
|
|
-0.06 |
|
Return on average
stockholders' equity |
|
8.89 |
% |
|
|
7.55 |
% |
|
|
7.50 |
% |
|
|
7.90 |
% |
|
|
9.70 |
% |
|
|
1.34 |
|
|
|
-0.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
2.91 |
% |
|
|
2.74 |
% |
|
|
2.69 |
% |
|
|
2.78 |
% |
|
|
2.92 |
% |
|
|
0.17 |
|
|
|
-0.01 |
|
Efficiency ratio (1) |
|
56.79 |
% |
|
|
59.98 |
% |
|
|
62.24 |
% |
|
|
62.42 |
% |
|
|
58.86 |
% |
|
|
-3.19 |
|
|
|
-2.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to
tangible assets (2) |
|
9.41 |
% |
|
|
9.42 |
% |
|
|
9.19 |
% |
|
|
9.23 |
% |
|
|
9.14 |
% |
|
|
-0.01 |
|
|
|
0.27 |
|
Tangible common equity per
common share (2) |
$ |
23.88 |
|
|
$ |
24.03 |
|
|
$ |
22.99 |
|
|
$ |
22.86 |
|
|
$ |
22.75 |
|
|
|
-0.15 |
|
|
|
1.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 fourth quarter was $53.4 million, up 6.8%
from $50.1 million for the third quarter of 2024. The increase was
primarily due to a decrease in deposit interest expense. The
decrease in deposit interest expense was primarily a result of
decreases in deposit rates and the average balances of
interest-bearing deposits, coupled with a 3.1% increase in the
average balance of noninterest-bearing demand deposits. The rate on
deposits for the fourth quarter decreased 31 basis points to 3.96%,
from 4.27% for the third quarter of 2024. The average balance of
interest-bearing deposits decreased to $4.36 billion for the fourth
quarter of 2024, from $4.40 billion for the third quarter. The
average balance of noninterest-bearing deposits for the fourth
quarter increased to $1.97 billion, from $1.91 billion for the
third quarter of 2024. Net interest margin (taxable equivalent) for
the fourth quarter was 2.91%, up 17 basis points from 2.74% for the
third quarter of 2024.
Net interest income was $202.8 million for the
full year of 2024 compared with $221.3 million for 2023, a decline
of 8.4%. The decrease reflected higher interest rates during 2024
compared with 2023, including an increase in the cost of
interest-bearing deposits, partially offset by an increase in
interest-earning asset yields. The cost of interest-bearing
deposits for 2024 year increased 81 basis points to 4.16% from
3.35% for 2023. The yield on average interest-earning assets for
2024 increased 31 basis points to 5.46% from 5.15% for 2023. The
average balance of interest-bearing deposits for 2024 increased to
$4.39 billion from $4.02 billion for 2023. The average balance of
interest-earning assets for 2024 year increased 1.7% to $7.30
billion from $7.18 billion for 2023. The average balance of loans
for 2024 year was $6.11 billion, up 2.4% from $5.97 billion for
2023. Net interest margin (taxable-equivalent) for 2024 year was
2.78% compared with 3.08% for 2023. The 30 basis point decrease in
the net interest margin reflected the increase in the cost of
interest-bearing deposits, partially offset by the increase in
average loan yields.
|
For the Three Months Ended (in thousands) |
|
|
Percentage Change |
|
|
Dec 31, |
|
|
Sep 30, |
|
|
Jun 30, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
Q4-24 |
|
|
Q4-24 |
|
Net Interest
Income |
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
vs. Q3-24 |
|
|
vs. Q4-23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans receivable(1) |
$ |
91,545 |
|
|
$ |
92,182 |
|
|
$ |
90,752 |
|
|
$ |
91,674 |
|
|
$ |
89,922 |
|
|
|
-0.7 |
% |
|
|
1.8 |
% |
Interest on securities |
|
5,866 |
|
|
|
5,523 |
|
|
|
5,238 |
|
|
|
4,955 |
|
|
|
4,583 |
|
|
|
6.2 |
% |
|
|
28.0 |
% |
Dividends on FHLB stock |
|
360 |
|
|
|
356 |
|
|
|
357 |
|
|
|
361 |
|
|
|
341 |
|
|
|
1.1 |
% |
|
|
5.6 |
% |
Interest on deposits in other
banks |
|
2,342 |
|
|
|
2,356 |
|
|
|
2,313 |
|
|
|
2,604 |
|
|
|
2,337 |
|
|
|
-0.6 |
% |
|
|
0.2 |
% |
Total interest and dividend income |
$ |
100,113 |
|
|
$ |
100,417 |
|
|
$ |
98,660 |
|
|
$ |
99,594 |
|
|
$ |
97,183 |
|
|
|
-0.3 |
% |
|
|
3.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
43,406 |
|
|
|
47,153 |
|
|
|
46,495 |
|
|
|
45,638 |
|
|
|
40,277 |
|
|
|
-7.9 |
% |
|
|
7.8 |
% |
Interest on borrowings |
|
1,634 |
|
|
|
1,561 |
|
|
|
1,896 |
|
|
|
1,655 |
|
|
|
2,112 |
|
|
|
4.7 |
% |
|
|
-22.6 |
% |
Interest on subordinated
debentures |
|
1,624 |
|
|
|
1,652 |
|
|
|
1,649 |
|
|
|
1,646 |
|
|
|
1,654 |
|
|
|
-1.7 |
% |
|
|
-1.8 |
% |
Total interest expense |
|
46,664 |
|
|
|
50,366 |
|
|
|
50,040 |
|
|
|
48,939 |
|
|
|
44,043 |
|
|
|
-7.4 |
% |
|
|
6.0 |
% |
Net interest income |
$ |
53,449 |
|
|
$ |
50,051 |
|
|
$ |
48,620 |
|
|
$ |
50,655 |
|
|
$ |
53,140 |
|
|
|
6.8 |
% |
|
|
0.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes loans held for
sale. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended (in thousands) |
|
|
Percentage Change |
|
Average Earning Assets and Interest-bearing
Liabilities |
|
Dec 31,2024 |
|
|
|
Sep 30,2024 |
|
|
|
Jun 30,2024 |
|
|
|
Mar 31,2024 |
|
|
|
Dec 31,2023 |
|
|
|
Q4-24vs. Q3-24 |
|
|
|
Q4-24vs. Q4-23 |
|
Loans receivable (1) |
$ |
6,103,264 |
|
|
$ |
6,112,324 |
|
|
$ |
6,089,440 |
|
|
$ |
6,137,888 |
|
|
$ |
6,071,644 |
|
|
|
-0.1 |
% |
|
|
0.5 |
% |
Securities |
|
998,313 |
|
|
|
986,041 |
|
|
|
979,671 |
|
|
|
969,520 |
|
|
|
961,551 |
|
|
|
1.2 |
% |
|
|
3.8 |
% |
FHLB stock |
|
16,385 |
|
|
|
16,385 |
|
|
|
16,385 |
|
|
|
16,385 |
|
|
|
16,385 |
|
|
|
0.0 |
% |
|
|
0.0 |
% |
Interest-bearing deposits in
other banks |
|
204,408 |
|
|
|
183,027 |
|
|
|
180,177 |
|
|
|
201,724 |
|
|
|
181,140 |
|
|
|
11.7 |
% |
|
|
12.8 |
% |
Average interest-earning assets |
$ |
7,322,370 |
|
|
$ |
7,297,777 |
|
|
$ |
7,265,673 |
|
|
$ |
7,325,517 |
|
|
$ |
7,230,720 |
|
|
|
0.3 |
% |
|
|
1.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand: interest-bearing |
$ |
79,784 |
|
|
$ |
83,647 |
|
|
$ |
85,443 |
|
|
$ |
86,401 |
|
|
$ |
86,679 |
|
|
|
-4.6 |
% |
|
|
-8.0 |
% |
Money market and savings |
|
1,934,540 |
|
|
|
1,885,799 |
|
|
|
1,845,870 |
|
|
|
1,815,085 |
|
|
|
1,669,973 |
|
|
|
2.6 |
% |
|
|
15.8 |
% |
Time deposits |
|
2,346,363 |
|
|
|
2,427,737 |
|
|
|
2,453,154 |
|
|
|
2,507,830 |
|
|
|
2,417,803 |
|
|
|
-3.4 |
% |
|
|
-3.0 |
% |
Average interest-bearing deposits |
|
4,360,687 |
|
|
|
4,397,183 |
|
|
|
4,384,467 |
|
|
|
4,409,316 |
|
|
|
4,174,455 |
|
|
|
-0.8 |
% |
|
|
4.5 |
% |
Borrowings |
|
141,604 |
|
|
|
143,479 |
|
|
|
169,525 |
|
|
|
162,418 |
|
|
|
205,951 |
|
|
|
-1.3 |
% |
|
|
-31.2 |
% |
Subordinated debentures |
|
130,567 |
|
|
|
130,403 |
|
|
|
130,239 |
|
|
|
130,088 |
|
|
|
129,933 |
|
|
|
0.1 |
% |
|
|
0.5 |
% |
Average interest-bearing liabilities |
$ |
4,632,858 |
|
|
$ |
4,671,065 |
|
|
$ |
4,684,231 |
|
|
$ |
4,701,822 |
|
|
$ |
4,510,339 |
|
|
|
-0.8 |
% |
|
|
2.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Noninterest
Bearing Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits - noninterest bearing |
$ |
1,967,789 |
|
|
$ |
1,908,833 |
|
|
$ |
1,883,765 |
|
|
$ |
1,921,189 |
|
|
$ |
2,025,212 |
|
|
|
3.1 |
% |
|
|
-2.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes loans held for
sale. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
Yield/Rate Change |
|
|
Dec 31, |
|
|
Sep 30, |
|
|
Jun 30, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
Q4-24 |
|
|
Q4-24 |
|
Average Yields and
Rates |
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
vs. Q3-24 |
|
|
vs. Q4-23 |
|
Loans receivable(1) |
|
5.97 |
% |
|
|
6.00 |
% |
|
|
5.99 |
% |
|
|
6.00 |
% |
|
|
5.88 |
% |
|
|
-0.03 |
|
|
|
0.09 |
|
Securities (2) |
|
2.38 |
% |
|
|
2.27 |
% |
|
|
2.17 |
% |
|
|
2.07 |
% |
|
|
1.93 |
% |
|
|
0.11 |
|
|
|
0.45 |
|
FHLB stock |
|
8.75 |
% |
|
|
8.65 |
% |
|
|
8.77 |
% |
|
|
8.87 |
% |
|
|
8.25 |
% |
|
|
0.10 |
|
|
|
0.50 |
|
Interest-bearing deposits in
other banks |
|
4.56 |
% |
|
|
5.12 |
% |
|
|
5.16 |
% |
|
|
5.19 |
% |
|
|
5.12 |
% |
|
|
-0.56 |
|
|
|
-0.56 |
|
Interest-earning assets |
|
5.45 |
% |
|
|
5.48 |
% |
|
|
5.46 |
% |
|
|
5.47 |
% |
|
|
5.34 |
% |
|
|
-0.03 |
|
|
|
0.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
3.96 |
% |
|
|
4.27 |
% |
|
|
4.27 |
% |
|
|
4.16 |
% |
|
|
3.83 |
% |
|
|
-0.31 |
|
|
|
0.13 |
|
Borrowings |
|
4.59 |
% |
|
|
4.33 |
% |
|
|
4.50 |
% |
|
|
4.10 |
% |
|
|
4.07 |
% |
|
|
0.26 |
|
|
|
0.52 |
|
Subordinated debentures |
|
4.97 |
% |
|
|
5.07 |
% |
|
|
5.07 |
% |
|
|
5.06 |
% |
|
|
5.09 |
% |
|
|
-0.10 |
|
|
|
-0.12 |
|
Interest-bearing
liabilities |
|
4.01 |
% |
|
|
4.29 |
% |
|
|
4.30 |
% |
|
|
4.19 |
% |
|
|
3.88 |
% |
|
|
-0.28 |
|
|
|
0.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (taxable
equivalent basis) |
|
2.91 |
% |
|
|
2.74 |
% |
|
|
2.69 |
% |
|
|
2.78 |
% |
|
|
2.92 |
% |
|
|
0.17 |
|
|
|
-0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of deposits |
|
2.73 |
% |
|
|
2.97 |
% |
|
|
2.98 |
% |
|
|
2.90 |
% |
|
|
2.58 |
% |
|
|
-0.24 |
|
|
|
0.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 fourth quarter was
$0.9 million, compared with $2.3 million for the third quarter of
2024. Fourth quarter credit loss expense included a $0.9 million
credit loss expense for loan losses. Fourth quarter net loan
recoveries were $0.1 million, compared to third quarter net loan
charge-offs of $0.9 million.
Credit loss expense was $4.4 million for 2024,
compared with $4.3 million for 2023. The credit loss expense for
2024 was comprised of a $4.8 million credit loss expense for loan
losses and a $0.4 million credit loss expense recovery for
off-balance sheet items. 2023 credit loss expense was comprised of
a $4.9 million credit loss expense for loan losses and a $0.6
million credit loss expense recovery for off-balance sheet
items.
Noninterest income for the fourth quarter
decreased $1.0 million, or 12.8%, to $7.4 million, from $8.4
million for the third quarter of 2024. The decrease was primarily
due to a $0.9 million gain from the sale and leaseback of a branch
property included in third quarter noninterest income. Gains on
sales of SBA loans were $1.4 million for the fourth quarter of
2024, compared with $1.5 million for the third quarter of 2024. The
volume of SBA loans sold for the fourth quarter decreased to $21.6
million, from $23.0 million for the third quarter of 2024, while
trade premiums were 8.53% for the fourth quarter of 2024, slightly
lower than 8.54% for the third quarter. Mortgage loans sold for the
fourth quarter were $18.3 million, with a premium of 1.96%,
compared with $20.9 million and 2.32% for the third quarter. Gains
on mortgage loans sold were $0.3 million for both quarters.
Noninterest income decreased $2.6 million, or
7.6%, to $31.6 million for 2024, from $34.2 million for 2023,
primarily due to a $4.0 million gain on the sale-and-leaseback of a
branch property in 2023 and a $0.8 million decrease in service
charges on deposits. Those items were partially offset by a $1.5
million gain on the sale of mortgage loans and a $0.9 million gain
from the sale and leaseback of a branch property in 2024. The
volume of SBA loans sold in 2024 declined to $93.7 million, from
$100.5 million for 2023, while trade premiums increased to 8.18%
for 2024, from 7.12% for 2023.
|
For the Three Months Ended (in thousands) |
|
|
Percentage Change |
|
|
Dec 31, |
|
|
Sep 30, |
|
|
Jun 30, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
Q4-24 |
|
|
Q4-24 |
|
Noninterest
Income |
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
vs. Q3-24 |
|
|
vs. Q4-23 |
|
Service charges on deposit accounts |
$ |
2,192 |
|
|
$ |
2,311 |
|
|
$ |
2,429 |
|
|
$ |
2,450 |
|
|
$ |
2,391 |
|
|
|
-5.1 |
% |
|
|
-8.3 |
% |
Trade finance and other
service charges and fees |
|
1,364 |
|
|
|
1,254 |
|
|
|
1,277 |
|
|
|
1,414 |
|
|
|
1,245 |
|
|
|
8.8 |
% |
|
|
9.6 |
% |
Servicing income |
|
668 |
|
|
|
817 |
|
|
|
796 |
|
|
|
712 |
|
|
|
772 |
|
|
|
-18.2 |
% |
|
|
-13.5 |
% |
Bank-owned life insurance
income (expense) |
|
316 |
|
|
|
320 |
|
|
|
638 |
|
|
|
304 |
|
|
|
(29 |
) |
|
|
-1.3 |
% |
|
N/M |
|
All other operating
income |
|
1,037 |
|
|
|
1,008 |
|
|
|
908 |
|
|
|
928 |
|
|
|
853 |
|
|
|
2.9 |
% |
|
|
21.6 |
% |
Service charges, fees & other |
|
5,577 |
|
|
|
5,710 |
|
|
|
6,048 |
|
|
|
5,808 |
|
|
|
5,232 |
|
|
|
-2.3 |
% |
|
|
6.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of SBA loans |
|
1,443 |
|
|
|
1,544 |
|
|
|
1,644 |
|
|
|
1,482 |
|
|
|
1,448 |
|
|
|
-6.5 |
% |
|
|
-0.3 |
% |
Gain on sale of mortgage
loans |
|
337 |
|
|
|
324 |
|
|
|
365 |
|
|
|
443 |
|
|
|
- |
|
|
|
4.0 |
% |
|
|
0.0 |
% |
Gain on sale of bank
premises |
|
- |
|
|
|
860 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
-100.0 |
% |
|
|
0.0 |
% |
Total noninterest income |
$ |
7,357 |
|
|
$ |
8,438 |
|
|
$ |
8,057 |
|
|
$ |
7,733 |
|
|
$ |
6,680 |
|
|
|
-12.8 |
% |
|
|
10.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M - Not meaningful. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense for the fourth quarter
decreased by $0.6 million to $34.5 million from $35.1 million for
the third quarter of 2024. The decrease primarily reflects a $1.6
million gain on the sale of an other real estate owned property.
Absent this gain, fourth quarter noninterest expense was up 3.1%
sequentially, due to increases in advertising and promotion expense
and legal fees from collections and business activities. In
addition, other operating expense for the fourth quarter included a
$0.5 million charge related to an SBA loan acquired in a previous
acquisition, while the third quarter included a $0.3 million
reimbursement for property taxes. The efficiency ratio for the
fourth quarter was 56.8%, compared with 60.0% for the third quarter
of 2024.
Noninterest expense increased by $4.8 million,
or 3.5%, to $141.3 million for 2024, from $136.5 million for 2023.
The increase reflected a $2.0 million, or 2.4%, increase in
salaries and benefits, a $1.2 million increase in data processing
expense, a $0.7 million increase in professional fees, and a $1.4
million increase in other operating expenses. Decreases of $0.2
million in occupancy and equipment expense and $0.2 million in
supplies and communication expense partially offset the increases.
The efficiency ratio for 2024 increased to 60.3%, from 53.5% for
2023, primarily due to higher expenses and lower revenue.
|
For the Three Months Ended (in thousands) |
|
|
Percentage Change |
|
|
Dec 31, |
|
|
Sep 30, |
|
|
Jun 30, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
Q4-24 |
|
|
Q4-24 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
vs. Q3-24 |
|
|
vs. Q4-23 |
|
Noninterest
Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
$ |
20,498 |
|
|
$ |
20,851 |
|
|
$ |
20,434 |
|
|
$ |
21,585 |
|
|
$ |
20,062 |
|
|
-1.7 |
% |
|
2.2 |
% |
Occupancy and equipment |
|
4,503 |
|
|
|
4,499 |
|
|
|
4,348 |
|
|
|
4,537 |
|
|
|
4,604 |
|
|
0.1 |
% |
|
-2.2 |
% |
Data processing |
|
3,800 |
|
|
|
3,839 |
|
|
|
3,686 |
|
|
|
3,551 |
|
|
|
3,487 |
|
|
-1.0 |
% |
|
9.0 |
% |
Professional fees |
|
1,821 |
|
|
|
1,492 |
|
|
|
1,749 |
|
|
|
1,893 |
|
|
|
1,977 |
|
|
22.1 |
% |
|
-7.9 |
% |
Supplies and
communication |
|
551 |
|
|
|
538 |
|
|
|
570 |
|
|
|
601 |
|
|
|
613 |
|
|
2.4 |
% |
|
-10.1 |
% |
Advertising and promotion |
|
821 |
|
|
|
631 |
|
|
|
669 |
|
|
|
907 |
|
|
|
990 |
|
|
30.1 |
% |
|
-17.1 |
% |
All other operating
expenses |
|
3,847 |
|
|
|
2,875 |
|
|
|
3,251 |
|
|
|
3,160 |
|
|
|
3,252 |
|
|
33.8 |
% |
|
18.3 |
% |
Subtotal |
|
35,841 |
|
|
|
34,725 |
|
|
|
34,707 |
|
|
|
36,234 |
|
|
|
34,985 |
|
|
3.2 |
% |
|
2.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branch consolidation
expense |
|
- |
|
|
|
- |
|
|
|
301 |
|
|
|
- |
|
|
|
- |
|
|
0.0 |
% |
|
0.0 |
% |
Other real estate owned
(income) expense |
|
(1,588 |
) |
|
|
77 |
|
|
|
6 |
|
|
|
22 |
|
|
|
15 |
|
|
N/M |
|
|
N/M |
|
Repossessed personal property
expense |
|
281 |
|
|
|
278 |
|
|
|
262 |
|
|
|
189 |
|
|
|
211 |
|
|
1.1 |
% |
|
33.2 |
% |
Total noninterest expense |
$ |
34,534 |
|
|
$ |
35,080 |
|
|
$ |
35,276 |
|
|
$ |
36,445 |
|
|
$ |
35,211 |
|
|
-1.6 |
% |
|
-1.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M - Not meaningful. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi recorded a provision for income taxes of
$7.6 million for the fourth quarter of 2024, compared with $6.2
million for the third quarter of 2024, representing an effective
tax rate of 30.1% and 29.5%, respectively. The effective tax rates
for 2024 and 2023 years were 29.8% and 30.1%, respectively.
Financial PositionTotal assets
at December 31, 2024, decreased 0.4%, or $33.7 million, to $7.68
billion from $7.71 billion at September 30, 2024. The decrease
reflected a $45.8 million decrease in loans held-for-sale and a
$6.4 million decrease in loans, offset partially by a $17.0 million
increase in cash and due from banks. From December 31, 2023, total
assets increased 1.4%, or $108.2 million. This year-over-year
increase reflected a 1.1%, or $68.9 million, growth in loans
receivable, and a 4.6%, or $40.1 million increase in securities,
supported by a 2.5%, or $155.2 million increase in deposits.
Loans receivable, before allowance for credit
losses, were $6.25 billion at December 31, 2024, down from $6.26
billion at September 30, 2024.
Loans held-for-sale were $8.6 million at
December 31, 2024, down from $54.3 million at September 30,
2024. At the end of the fourth quarter, loans held-for-sale
consisted of the guaranteed portion of SBA 7(a) loans. The prior
quarter included $18.3 million of residential mortgage loans and a
$27.2 million nonaccrual loan, all of which were sold in the fourth
quarter.
|
As of (in thousands) |
|
|
Percentage Change |
|
|
Dec 31, |
|
|
Sep 30, |
|
|
Jun 30, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
Q4-24 |
|
|
Q4-24 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
vs. Q3-24 |
|
|
vs. Q4-23 |
|
Loan
Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans |
$ |
3,949,622 |
|
|
$ |
3,932,088 |
|
|
$ |
3,888,505 |
|
|
$ |
3,878,677 |
|
|
$ |
3,889,739 |
|
|
|
0.4 |
% |
|
1.5 |
% |
Residential/consumer
loans |
|
951,302 |
|
|
|
939,285 |
|
|
|
954,209 |
|
|
|
970,362 |
|
|
|
962,661 |
|
|
|
1.3 |
% |
|
-1.2 |
% |
Commercial and industrial
loans |
|
863,431 |
|
|
|
879,092 |
|
|
|
802,372 |
|
|
|
774,851 |
|
|
|
747,819 |
|
|
|
-1.8 |
% |
|
15.5 |
% |
Equipment finance |
|
487,022 |
|
|
|
507,279 |
|
|
|
531,273 |
|
|
|
553,950 |
|
|
|
582,215 |
|
|
|
-4.0 |
% |
|
-16.4 |
% |
Loans receivable |
|
6,251,377 |
|
|
|
6,257,744 |
|
|
|
6,176,359 |
|
|
|
6,177,840 |
|
|
|
6,182,434 |
|
|
|
-0.1 |
% |
|
1.1 |
% |
Loans held for sale |
|
8,579 |
|
|
|
54,336 |
|
|
|
10,467 |
|
|
|
3,999 |
|
|
|
12,013 |
|
|
|
-84.2 |
% |
|
-28.6 |
% |
Total |
$ |
6,259,956 |
|
|
$ |
6,312,080 |
|
|
$ |
6,186,826 |
|
|
$ |
6,181,839 |
|
|
$ |
6,194,447 |
|
|
|
-0.8 |
% |
|
1.1 |
% |
|
As of |
|
|
Dec 31, |
|
|
Sep 30, |
|
|
Jun 30, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
Composition of Loan
Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans |
63.1 |
% |
|
62.3 |
% |
|
62.9 |
% |
|
62.7 |
% |
|
62.8 |
% |
Residential/consumer
loans |
15.2 |
% |
|
14.9 |
% |
|
15.4 |
% |
|
15.7 |
% |
|
15.5 |
% |
Commercial and industrial
loans |
13.8 |
% |
|
13.9 |
% |
|
13.0 |
% |
|
12.5 |
% |
|
12.1 |
% |
Equipment finance |
7.8 |
% |
|
8.0 |
% |
|
8.5 |
% |
|
9.0 |
% |
|
9.4 |
% |
Loans receivable |
99.9 |
% |
|
99.1 |
% |
|
99.8 |
% |
|
99.9 |
% |
|
99.8 |
% |
Loans held for sale |
0.1 |
% |
|
0.9 |
% |
|
0.2 |
% |
|
0.1 |
% |
|
0.2 |
% |
Total |
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
New loan production was $339.0 million for the
fourth quarter of 2024 at an average rate of 7.37%, while payoffs
were $137.9 million during the quarter at an average rate of
6.78%.
Commercial real estate loan production for the
fourth quarter of 2024 was $146.7 million. Commercial and
industrial loan production was $60.2 million, SBA loan production
was $49.7 million, equipment finance production was $42.2 million,
and residential mortgage loan production was $40.2 million.
New loan production for 2024 was $1.20 billion,
a decrease of 7.4%, or $96.0 million, from $1.29 billion for the
full year 2023. The average rate for new loan production for 2024
was 7.87% compared with 7.66% for 2023. Payoffs for 2024 were
$450.2 million with an average rate of 7.34% compared with $386.0
million and 7.13% for 2023.
|
For the Three Months Ended (in thousands) |
|
|
Dec 31, |
|
|
Sep 30, |
|
|
Jun 30, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
New Loan
Production |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans |
$ |
146,716 |
|
|
$ |
110,246 |
|
|
$ |
87,632 |
|
|
$ |
60,085 |
|
|
$ |
178,157 |
|
Commercial and industrial
loans |
|
60,159 |
|
|
|
105,086 |
|
|
|
59,007 |
|
|
|
50,789 |
|
|
|
52,079 |
|
SBA loans |
|
49,740 |
|
|
|
51,616 |
|
|
|
54,486 |
|
|
|
30,817 |
|
|
|
48,432 |
|
Equipment finance |
|
42,168 |
|
|
|
40,066 |
|
|
|
42,594 |
|
|
|
39,155 |
|
|
|
57,334 |
|
Residential/consumer
loans |
|
40,225 |
|
|
|
40,758 |
|
|
|
30,194 |
|
|
|
53,115 |
|
|
|
53,465 |
|
subtotal |
|
339,008 |
|
|
|
347,772 |
|
|
|
273,913 |
|
|
|
233,961 |
|
|
|
389,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payoffs |
|
(137,932 |
) |
|
|
(77,603 |
) |
|
|
(148,400 |
) |
|
|
(86,250 |
) |
|
|
(77,961 |
) |
Amortization |
|
(60,583 |
) |
|
|
(151,674 |
) |
|
|
(83,640 |
) |
|
|
(90,711 |
) |
|
|
(106,610 |
) |
Loan sales |
|
(67,852 |
) |
|
|
(43,868 |
) |
|
|
(42,945 |
) |
|
|
(55,321 |
) |
|
|
(29,861 |
) |
Net line utilization |
|
(75,651 |
) |
|
|
9,426 |
|
|
|
1,929 |
|
|
|
(4,150 |
) |
|
|
(11,609 |
) |
Charge-offs & OREO |
|
(3,356 |
) |
|
|
(2,668 |
) |
|
|
(2,338 |
) |
|
|
(2,123 |
) |
|
|
(1,777 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable-beginning
balance |
|
6,257,744 |
|
|
|
6,176,359 |
|
|
|
6,177,840 |
|
|
|
6,182,434 |
|
|
|
6,020,785 |
|
Loans receivable-ending
balance |
$ |
6,251,377 |
|
|
$ |
6,257,744 |
|
|
$ |
6,176,359 |
|
|
$ |
6,177,840 |
|
|
$ |
6,182,434 |
|
Deposits were $6.44 billion at the end of the
fourth quarter of 2024, up $32.6 million, or 0.5%, from $6.40
billion at the end of the prior quarter. Driving the change was a
$44.8 million increase in noninterest-bearing demand deposits and a
$34.7 million increase in money market and savings deposits,
partially offset by a $48.0 million decrease in time deposits.
Noninterest-bearing demand deposits represented 32.6% of total
deposits at December 31, 2024, and the loan-to-deposit ratio was
97.1%.
|
As of (in thousands) |
|
|
Percentage Change |
|
|
Dec 31, |
|
|
Sep 30, |
|
|
Jun 30, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
Q4-24 |
|
|
Q4-24 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
vs. Q3-24 |
|
|
vs. Q4-23 |
|
Deposit
Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand: noninterest-bearing |
$ |
2,096,634 |
|
|
$ |
2,051,790 |
|
|
$ |
1,959,963 |
|
|
$ |
1,933,060 |
|
|
$ |
2,003,596 |
|
|
2.2 |
% |
|
4.6 |
% |
Demand: interest-bearing |
|
80,323 |
|
|
|
79,287 |
|
|
|
82,981 |
|
|
|
87,374 |
|
|
|
87,452 |
|
|
1.3 |
% |
|
-8.2 |
% |
Money market and savings |
|
1,933,535 |
|
|
|
1,898,834 |
|
|
|
1,834,797 |
|
|
|
1,859,865 |
|
|
|
1,734,658 |
|
|
1.8 |
% |
|
11.5 |
% |
Time deposits |
|
2,325,284 |
|
|
|
2,373,310 |
|
|
|
2,451,599 |
|
|
|
2,495,761 |
|
|
|
2,454,868 |
|
|
-2.0 |
% |
|
-5.3 |
% |
Total deposits |
$ |
6,435,776 |
|
|
$ |
6,403,221 |
|
|
$ |
6,329,340 |
|
|
$ |
6,376,060 |
|
|
$ |
6,280,574 |
|
|
0.5 |
% |
|
2.5 |
% |
|
As of |
|
|
Dec 31, |
|
|
Sep 30, |
|
|
Jun 30, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
Composition of Deposit
Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand:
noninterest-bearing |
32.6 |
% |
|
32.0 |
% |
|
31.0 |
% |
|
30.3 |
% |
|
31.9 |
% |
Demand: interest-bearing |
1.2 |
% |
|
1.2 |
% |
|
1.3 |
% |
|
1.4 |
% |
|
1.4 |
% |
Money market and savings |
30.0 |
% |
|
29.7 |
% |
|
29.0 |
% |
|
29.2 |
% |
|
27.6 |
% |
Time deposits |
36.2 |
% |
|
37.1 |
% |
|
38.7 |
% |
|
39.1 |
% |
|
39.1 |
% |
Total deposits |
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
Stockholders’ equity at December 31, 2024, was
$732.2 million, down $4.5 million from $736.7 million at September
30, 2024. The decrease was due to a $14.6 million increase in
unrealized after-tax losses on securities available for sale and a
$1.0 million increase in unrealized after-tax losses on cash flow
hedges, all due to changes in interest rates during the fourth
quarter of 2024. Hanmi also repurchased 24,500 shares of common
stock, at a cost of $0.6 million, during the quarter at an average
share price of $22.91. At December 31, 2024, 1,230,500 shares
remain under Hanmi’s share repurchase program. Partially offsetting
these decreases was $10.2 million of net income, net of dividends
paid, for the fourth quarter. Tangible common stockholders’ equity
was $721.1 million, or 9.41% of tangible assets, at December 31,
2024, compared with $725.7 million, or 9.42% 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 December 31, 2024, Hanmi’s
preliminary common equity tier 1 capital ratio was 12.11% and its
total risk-based capital ratio was 15.24%, compared with 11.95% and
15.03%, respectively, at the end of the prior quarter.
|
As of |
|
|
Ratio Change |
|
|
Dec 31, |
|
|
Sep 30, |
|
|
Jun 30, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
Q4-24 |
|
|
Q4-24 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
vs. Q3-24 |
|
|
vs. Q4-23 |
|
Regulatory Capital
ratios (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital |
15.24 |
% |
|
15.03 |
% |
|
15.24 |
% |
|
15.20 |
% |
|
14.95 |
% |
|
0.21 |
|
|
0.29 |
|
Tier 1 risk-based capital |
12.46 |
% |
|
12.29 |
% |
|
12.46 |
% |
|
12.40 |
% |
|
12.20 |
% |
|
0.17 |
|
|
0.26 |
|
Common equity tier 1 capital |
12.11 |
% |
|
11.95 |
% |
|
12.11 |
% |
|
12.05 |
% |
|
11.86 |
% |
|
0.16 |
|
|
0.25 |
|
Tier 1 leverage capital ratio |
10.63 |
% |
|
10.56 |
% |
|
10.51 |
% |
|
10.36 |
% |
|
10.37 |
% |
|
0.07 |
|
|
0.26 |
|
Hanmi Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital |
14.43 |
% |
|
14.27 |
% |
|
14.51 |
% |
|
14.50 |
% |
|
14.27 |
% |
|
0.16 |
|
|
0.16 |
|
Tier 1 risk-based capital |
13.36 |
% |
|
13.23 |
% |
|
13.47 |
% |
|
13.44 |
% |
|
13.26 |
% |
|
0.13 |
|
|
0.10 |
|
Common equity tier 1 capital |
13.36 |
% |
|
13.23 |
% |
|
13.47 |
% |
|
13.44 |
% |
|
13.26 |
% |
|
0.13 |
|
|
0.10 |
|
Tier 1 leverage capital ratio |
11.46 |
% |
|
11.43 |
% |
|
11.41 |
% |
|
11.29 |
% |
|
11.32 |
% |
|
0.03 |
|
|
0.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Preliminary ratios for
December 31, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Loans 30 to 89
days past due and still accruing were 0.30% of loans at the end of
the fourth quarter of 2024, compared with 0.24% at the end of the
prior quarter.
Criticized loans totaled $165.3 million at
December 31, 2024, up from $160.0 million at the end of the third
quarter of 2024. The $5.3 million increase resulted from an $8.0
million increase in special mention loans and a $2.7 million
decrease in classified loans. The $8.0 million increase in special
mention loans included additions of $13.4 million, offset by loan
reductions and pay-downs of $3.8 million, upgrades of $1.3 million
and downgrades of $0.3 million. The $2.7 million decrease in
classified loans resulted from $2.9 million of charge-offs, $2.4
million of payoffs, $1.4 million of upgrades and $1.6 million of
amortization and paydowns, offset by loan downgrades of $2.7
million and lease downgrades of $2.9 million.
Nonperforming loans were $14.3 million at
December 31, 2024, down from $15.5 million at the end of the prior
quarter. The decrease primarily reflects pay-offs of $1.8 million,
$1.0 million in loan upgrades, $0.8 million in paydowns, and
charge-offs of $2.9 million. Offsetting the decrease were additions
of $5.5 million.
Nonperforming assets were $14.4 million at the
end of the fourth quarter of 2024, down from $16.3 million at the
end of the prior quarter. As a percentage of total assets,
nonperforming assets were 0.19% at December 31, 2024, and 0.21% at
the end of the prior quarter.
Gross charge-offs for the fourth quarter of 2024
were $3.4 million, compared with $3.8 million for the preceding
quarter. Charge-offs included $2.9 million on equipment financing
agreements. Recoveries of previously charged-off loans were
$3.5 million in the fourth quarter of 2024. As a result, there were
$0.1 million of net recoveries for the fourth quarter of 2024,
compared to net charge-offs of $0.9 million for the prior quarter.
For 2024, net charge-offs were 0.07% of average loans, compared
with 0.12% for 2023.
The allowance for credit losses was $70.1
million at December 31, 2024, compared with $69.2 million at
September 30, 2024. Specific allowances for loans increased $1.0
million, while the allowance for quantitative and qualitative
considerations remained relatively unchanged. The ratio of the
allowance for credit losses to loans was 1.12% at December 31, 2024
and 1.11% at September 30, 2024.
|
As of or for the Three Months Ended (in
thousands) |
|
|
Amount Change |
|
|
Dec 31, |
|
|
Sep 30, |
|
|
Jun 30, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
Q4-24 |
|
|
Q4-24 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
vs. Q3-24 |
|
|
vs. Q4-23 |
|
Asset Quality Data and
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquent
loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, 30 to 89 days past due and still accruing |
$ |
18,454 |
|
|
$ |
15,027 |
|
|
$ |
13,844 |
|
|
$ |
15,839 |
|
|
$ |
10,263 |
|
|
$ |
3,427 |
|
|
$ |
8,191 |
|
Delinquent loans to total
loans |
|
0.30 |
% |
|
|
0.24 |
% |
|
|
0.22 |
% |
|
|
0.26 |
% |
|
|
0.17 |
% |
|
|
0.06 |
|
|
|
0.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Criticized
loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special mention |
$ |
139,612 |
|
|
$ |
131,575 |
|
|
$ |
36,921 |
|
|
$ |
62,317 |
|
|
$ |
65,314 |
|
|
$ |
8,037 |
|
|
$ |
74,298 |
|
Classified |
|
25,683 |
|
|
|
28,377 |
|
|
|
33,945 |
|
|
|
23,670 |
|
|
|
31,367 |
|
|
|
(2,694 |
) |
|
|
(5,684 |
) |
Total criticized loans |
$ |
165,295 |
|
|
$ |
159,952 |
|
|
$ |
70,866 |
|
|
$ |
85,987 |
|
|
$ |
96,681 |
|
|
$ |
5,343 |
|
|
$ |
68,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
14,274 |
|
|
$ |
15,248 |
|
|
$ |
19,245 |
|
|
$ |
14,025 |
|
|
$ |
15,474 |
|
|
$ |
(974 |
) |
|
$ |
(1,200 |
) |
Loans 90 days or more past due
and still accruing |
|
- |
|
|
|
242 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(242 |
) |
|
|
- |
|
Nonperforming loans* |
|
14,274 |
|
|
|
15,490 |
|
|
|
19,245 |
|
|
|
14,025 |
|
|
|
15,474 |
|
|
|
(1,216 |
) |
|
|
(1,200 |
) |
Other real estate owned,
net |
|
117 |
|
|
|
772 |
|
|
|
772 |
|
|
|
117 |
|
|
|
117 |
|
|
|
(655 |
) |
|
|
- |
|
Nonperforming assets** |
$ |
14,391 |
|
|
$ |
16,262 |
|
|
$ |
20,017 |
|
|
$ |
14,142 |
|
|
$ |
15,591 |
|
|
$ |
(1,871 |
) |
|
$ |
(1,200 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to
assets* |
|
0.19 |
% |
|
|
0.21 |
% |
|
|
0.26 |
% |
|
|
0.19 |
% |
|
|
0.21 |
% |
|
|
-0.02 |
|
|
|
-0.02 |
|
Nonperforming loans to total
loans |
|
0.23 |
% |
|
|
0.25 |
% |
|
|
0.31 |
% |
|
|
0.23 |
% |
|
|
0.25 |
% |
|
|
-0.02 |
|
|
|
-0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Excludes a
$27.2 million nonperforming loan held-for-sale as of September 30,
2024. |
|
|
|
|
** Excludes
repossessed personal property of $0.6 million, $1.2 million, $1.2
million, $1.3 million, and $1.3 million as of Q4-24, Q3-24, Q2-24,
Q1-24, and Q4-23, respectively |
|
|
As of or for the Three Months Ended (in
thousands) |
|
|
Dec 31, |
|
|
Sep 30, |
|
|
Jun 30, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
Allowance for credit
losses related to loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
$ |
69,163 |
|
|
$ |
67,729 |
|
|
$ |
68,270 |
|
|
$ |
69,462 |
|
|
$ |
67,313 |
|
Credit loss expense (recovery)
on loans |
|
855 |
|
|
|
2,312 |
|
|
|
1,248 |
|
|
|
404 |
|
|
|
(2,880 |
) |
Net loan (charge-offs)
recoveries |
|
129 |
|
|
|
(878 |
) |
|
|
(1,789 |
) |
|
|
(1,596 |
) |
|
|
5,029 |
|
Balance at end of period |
$ |
70,147 |
|
|
$ |
69,163 |
|
|
$ |
67,729 |
|
|
$ |
68,270 |
|
|
$ |
69,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
(recoveries) to average loans (1) |
|
-0.01 |
% |
|
|
0.06 |
% |
|
|
0.12 |
% |
|
|
0.10 |
% |
|
|
-0.33 |
% |
Allowance for credit losses to
loans |
|
1.12 |
% |
|
|
1.11 |
% |
|
|
1.10 |
% |
|
|
1.11 |
% |
|
|
1.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses related to off-balance sheet items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period |
$ |
1,984 |
|
|
$ |
2,010 |
|
|
$ |
2,297 |
|
|
$ |
2,474 |
|
|
$ |
2,463 |
|
Credit loss expense (recovery)
on off-balance sheet items |
|
90 |
|
|
|
(26 |
) |
|
|
(287 |
) |
|
|
(177 |
) |
|
|
11 |
|
Balance at end of period |
$ |
2,074 |
|
|
$ |
1,984 |
|
|
$ |
2,010 |
|
|
$ |
2,297 |
|
|
$ |
2,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unused commitments to extend
credit |
$ |
782,587 |
|
|
$ |
739,975 |
|
|
$ |
795,391 |
|
|
$ |
792,769 |
|
|
$ |
813,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate DevelopmentsOn
October 24, 2024, Hanmi’s Board of Directors declared a cash
dividend on its common stock for the 2024 fourth quarter of $0.25
per share. Hanmi paid the dividend on November 20, 2024, to
stockholders of record as of the close of business on November 4,
2024.
Earnings Conference CallHanmi
Bank will host its fourth quarter 2024 earnings conference call
today, January 28, 2025, at 2:00 p.m. PST (5:00 p.m. EST) 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. PST, 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 31 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;
- the imposition of tariffs or other
domestic or international governmental polices impacting the value
of the products of our borrowers;
- 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)
|
December 31, |
|
|
September 30, |
|
|
Percentage |
|
|
December 31, |
|
|
Percentage |
|
|
2024 |
|
|
2024 |
|
|
Change |
|
|
2023 |
|
|
Change |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
304,800 |
|
|
$ |
287,767 |
|
|
5.9 |
% |
|
$ |
302,324 |
|
|
0.8 |
% |
Securities available for sale, at fair value |
|
905,798 |
|
|
|
908,921 |
|
|
-0.3 |
% |
|
|
865,739 |
|
|
4.6 |
% |
Loans held for sale, at the lower of cost or fair value |
|
8,579 |
|
|
|
54,336 |
|
|
-84.2 |
% |
|
|
12,013 |
|
|
-28.6 |
% |
Loans receivable, net of allowance for credit losses |
|
6,181,230 |
|
|
|
6,188,581 |
|
|
-0.1 |
% |
|
|
6,112,972 |
|
|
1.1 |
% |
Accrued interest receivable |
|
22,937 |
|
|
|
21,955 |
|
|
4.5 |
% |
|
|
23,371 |
|
|
-1.9 |
% |
Premises and equipment, net |
|
21,404 |
|
|
|
21,371 |
|
|
0.2 |
% |
|
|
21,959 |
|
|
-2.5 |
% |
Customers' liability on acceptances |
|
1,226 |
|
|
|
67 |
|
|
N/M |
|
|
|
625 |
|
|
96.2 |
% |
Servicing assets |
|
6,457 |
|
|
|
6,683 |
|
|
-3.4 |
% |
|
|
7,070 |
|
|
-8.7 |
% |
Goodwill and other intangible assets, net |
|
11,031 |
|
|
|
11,031 |
|
|
0.0 |
% |
|
|
11,099 |
|
|
-0.6 |
% |
Federal Home Loan Bank ("FHLB") stock, at cost |
|
16,385 |
|
|
|
16,385 |
|
|
0.0 |
% |
|
|
16,385 |
|
|
0.0 |
% |
Bank-owned life insurance |
|
57,168 |
|
|
|
56,851 |
|
|
0.6 |
% |
|
|
56,335 |
|
|
1.5 |
% |
Prepaid expenses and other assets |
|
140,910 |
|
|
|
138,351 |
|
|
1.8 |
% |
|
|
140,449 |
|
|
0.3 |
% |
Total
assets |
$ |
7,677,925 |
|
|
$ |
7,712,299 |
|
|
-0.4 |
% |
|
$ |
7,570,341 |
|
|
1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
2,096,634 |
|
|
$ |
2,051,790 |
|
|
2.2 |
% |
|
$ |
2,003,596 |
|
|
4.6 |
% |
Interest-bearing |
|
4,339,142 |
|
|
|
4,351,431 |
|
|
-0.3 |
% |
|
|
4,276,978 |
|
|
1.5 |
% |
Total deposits |
|
6,435,776 |
|
|
|
6,403,221 |
|
|
0.5 |
% |
|
|
6,280,574 |
|
|
2.5 |
% |
Accrued interest payable |
|
34,824 |
|
|
|
52,613 |
|
|
-33.8 |
% |
|
|
39,306 |
|
|
-11.4 |
% |
Bank's liability on acceptances |
|
1,226 |
|
|
|
67 |
|
|
N/M |
|
|
|
625 |
|
|
96.2 |
% |
Borrowings |
|
262,500 |
|
|
|
300,000 |
|
|
-12.5 |
% |
|
|
325,000 |
|
|
-19.2 |
% |
Subordinated debentures |
|
130,638 |
|
|
|
130,478 |
|
|
0.1 |
% |
|
|
130,012 |
|
|
0.5 |
% |
Accrued expenses and other liabilities |
|
80,787 |
|
|
|
89,211 |
|
|
-9.4 |
% |
|
|
92,933 |
|
|
-13.1 |
% |
Total
liabilities |
|
6,945,751 |
|
|
|
6,975,590 |
|
|
-0.4 |
% |
|
|
6,868,450 |
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
34 |
|
|
|
34 |
|
|
0.0 |
% |
|
|
34 |
|
|
0.0 |
% |
Additional paid-in capital |
|
591,069 |
|
|
|
589,567 |
|
|
0.3 |
% |
|
|
586,912 |
|
|
0.7 |
% |
Accumulated other comprehensive income |
|
(70,723 |
) |
|
|
(55,140 |
) |
|
-28.3 |
% |
|
|
(71,928 |
) |
|
1.7 |
% |
Retained earnings |
|
350,869 |
|
|
|
340,718 |
|
|
3.0 |
% |
|
|
319,048 |
|
|
10.0 |
% |
Less treasury stock |
|
(139,075 |
) |
|
|
(138,470 |
) |
|
-0.4 |
% |
|
|
(132,175 |
) |
|
-5.2 |
% |
Total stockholders'
equity |
|
732,174 |
|
|
|
736,709 |
|
|
-0.6 |
% |
|
|
701,891 |
|
|
4.3 |
% |
Total liabilities and
stockholders' equity |
$ |
7,677,925 |
|
|
$ |
7,712,299 |
|
|
-0.4 |
% |
|
$ |
7,570,341 |
|
|
1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M - Not meaningful. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)(Dollars in thousands, except share and per share
data)
|
Three Months Ended |
|
|
December 31, |
|
|
September 30, |
|
|
Percentage |
|
|
December 31, |
|
|
Percentage |
|
|
2024 |
|
|
2024 |
|
|
Change |
|
|
2023 |
|
|
Change |
|
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans receivable |
$ |
91,545 |
|
|
$ |
92,182 |
|
|
-0.7 |
% |
|
$ |
89,922 |
|
|
1.8 |
% |
Interest on securities |
|
5,866 |
|
|
|
5,523 |
|
|
6.2 |
% |
|
|
4,583 |
|
|
28.0 |
% |
Dividends on FHLB stock |
|
360 |
|
|
|
356 |
|
|
1.1 |
% |
|
|
341 |
|
|
5.6 |
% |
Interest on deposits in other banks |
|
2,342 |
|
|
|
2,356 |
|
|
-0.6 |
% |
|
|
2,337 |
|
|
0.2 |
% |
Total interest and dividend income |
|
100,113 |
|
|
|
100,417 |
|
|
-0.3 |
% |
|
|
97,183 |
|
|
3.0 |
% |
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
43,406 |
|
|
|
47,153 |
|
|
-7.9 |
% |
|
|
40,277 |
|
|
7.8 |
% |
Interest on borrowings |
|
1,634 |
|
|
|
1,561 |
|
|
4.7 |
% |
|
|
2,112 |
|
|
-22.6 |
% |
Interest on subordinated debentures |
|
1,624 |
|
|
|
1,652 |
|
|
-1.7 |
% |
|
|
1,654 |
|
|
-1.8 |
% |
Total interest expense |
|
46,664 |
|
|
|
50,366 |
|
|
-7.4 |
% |
|
|
44,043 |
|
|
6.0 |
% |
Net interest income before
credit loss expense |
|
53,449 |
|
|
|
50,051 |
|
|
6.8 |
% |
|
|
53,140 |
|
|
0.6 |
% |
Credit loss expense |
|
945 |
|
|
|
2,286 |
|
|
-58.7 |
% |
|
|
(2,870 |
) |
|
132.9 |
% |
Net interest income after
credit loss expense |
|
52,504 |
|
|
|
47,765 |
|
|
9.9 |
% |
|
|
56,010 |
|
|
-6.3 |
% |
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
2,192 |
|
|
|
2,311 |
|
|
-5.1 |
% |
|
|
2,391 |
|
|
-8.3 |
% |
Trade finance and other service charges and fees |
|
1,364 |
|
|
|
1,254 |
|
|
8.8 |
% |
|
|
1,245 |
|
|
9.6 |
% |
Gain on sale of Small Business Administration ("SBA") loans |
|
1,443 |
|
|
|
1,544 |
|
|
-6.5 |
% |
|
|
1,448 |
|
|
-0.3 |
% |
Other operating income |
|
2,358 |
|
|
|
3,329 |
|
|
-29.2 |
% |
|
|
1,596 |
|
|
47.7 |
% |
Total noninterest income |
|
7,357 |
|
|
|
8,438 |
|
|
-12.8 |
% |
|
|
6,680 |
|
|
10.1 |
% |
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
20,498 |
|
|
|
20,851 |
|
|
-1.7 |
% |
|
|
20,062 |
|
|
2.2 |
% |
Occupancy and equipment |
|
4,503 |
|
|
|
4,499 |
|
|
0.1 |
% |
|
|
4,604 |
|
|
-2.2 |
% |
Data processing |
|
3,800 |
|
|
|
3,839 |
|
|
-1.0 |
% |
|
|
3,487 |
|
|
9.0 |
% |
Professional fees |
|
1,821 |
|
|
|
1,492 |
|
|
22.1 |
% |
|
|
1,977 |
|
|
-7.9 |
% |
Supplies and communications |
|
551 |
|
|
|
538 |
|
|
2.4 |
% |
|
|
613 |
|
|
-10.1 |
% |
Advertising and promotion |
|
821 |
|
|
|
631 |
|
|
30.1 |
% |
|
|
990 |
|
|
-17.1 |
% |
Other operating expenses |
|
2,540 |
|
|
|
3,230 |
|
|
-21.4 |
% |
|
|
3,478 |
|
|
-27.0 |
% |
Total noninterest expense |
|
34,534 |
|
|
|
35,080 |
|
|
-1.6 |
% |
|
|
35,211 |
|
|
-1.9 |
% |
Income before tax |
|
25,327 |
|
|
|
21,123 |
|
|
19.9 |
% |
|
|
27,479 |
|
|
-7.8 |
% |
Income tax expense |
|
7,632 |
|
|
|
6,231 |
|
|
22.5 |
% |
|
|
8,846 |
|
|
-13.7 |
% |
Net
income |
$ |
17,695 |
|
|
$ |
14,892 |
|
|
18.8 |
% |
|
$ |
18,633 |
|
|
-5.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share: |
$ |
0.59 |
|
|
$ |
0.49 |
|
|
|
|
|
$ |
0.61 |
|
|
|
|
Diluted earnings per
share: |
$ |
0.58 |
|
|
$ |
0.49 |
|
|
|
|
|
$ |
0.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
29,933,644 |
|
|
|
29,968,004 |
|
|
|
|
|
|
30,189,578 |
|
|
|
|
Diluted |
|
30,011,773 |
|
|
|
30,033,679 |
|
|
|
|
|
|
30,251,315 |
|
|
|
|
Common shares outstanding |
|
30,195,999 |
|
|
|
30,196,755 |
|
|
|
|
|
|
30,368,655 |
|
|
|
|
Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)(Dollars in thousands, except share and per share
data)
|
Twelve Months Ended |
|
|
December 31, |
|
|
December 31, |
|
|
Percentage |
|
|
2024 |
|
|
2023 |
|
|
Change |
|
Interest and dividend
income: |
|
|
|
|
|
|
|
|
Interest and fees on loans receivable |
$ |
366,153 |
|
|
$ |
339,811 |
|
|
|
7.8 |
% |
Interest on securities |
|
21,583 |
|
|
|
16,938 |
|
|
|
27.4 |
% |
Dividends on FHLB stock |
|
1,436 |
|
|
|
1,229 |
|
|
|
16.8 |
% |
Interest on deposits in other banks |
|
9,611 |
|
|
|
11,350 |
|
|
|
-15.3 |
% |
Total interest and dividend income |
|
398,783 |
|
|
|
369,328 |
|
|
|
8.0 |
% |
Interest
expense: |
|
|
|
|
|
|
|
|
Interest on deposits |
|
182,692 |
|
|
|
134,708 |
|
|
|
35.6 |
% |
Interest on borrowings |
|
6,746 |
|
|
|
6,867 |
|
|
|
-1.8 |
% |
Interest on subordinated debentures |
|
6,571 |
|
|
|
6,482 |
|
|
|
1.4 |
% |
Total interest expense |
|
196,009 |
|
|
|
148,057 |
|
|
|
32.4 |
% |
Net interest income before
credit loss expense |
|
202,774 |
|
|
|
221,271 |
|
|
|
-8.4 |
% |
Credit loss expense |
|
4,419 |
|
|
|
4,342 |
|
|
|
1.8 |
% |
Net interest income after
credit loss expense |
|
198,355 |
|
|
|
216,929 |
|
|
|
-8.6 |
% |
Noninterest
income: |
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
9,381 |
|
|
|
10,147 |
|
|
|
-7.5 |
% |
Trade finance and other service charges and fees |
|
5,309 |
|
|
|
4,832 |
|
|
|
9.9 |
% |
Gain on sale of Small Business Administration ("SBA") loans |
|
6,112 |
|
|
|
5,701 |
|
|
|
7.2 |
% |
Other operating income |
|
10,783 |
|
|
|
13,499 |
|
|
|
-20.1 |
% |
Total noninterest income |
|
31,585 |
|
|
|
34,179 |
|
|
|
-7.6 |
% |
Noninterest
expense: |
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
83,368 |
|
|
|
81,398 |
|
|
|
2.4 |
% |
Occupancy and equipment |
|
18,146 |
|
|
|
18,340 |
|
|
|
-1.1 |
% |
Data processing |
|
14,876 |
|
|
|
13,695 |
|
|
|
8.6 |
% |
Professional fees |
|
6,956 |
|
|
|
6,255 |
|
|
|
11.2 |
% |
Supplies and communications |
|
2,261 |
|
|
|
2,479 |
|
|
|
-8.8 |
% |
Advertising and promotion |
|
3,028 |
|
|
|
3,105 |
|
|
|
-2.5 |
% |
Other operating expenses |
|
12,700 |
|
|
|
11,255 |
|
|
|
12.8 |
% |
Total noninterest expense |
|
141,335 |
|
|
|
136,527 |
|
|
|
3.5 |
% |
Income before tax |
|
88,605 |
|
|
|
114,581 |
|
|
|
-22.7 |
% |
Income tax expense |
|
26,404 |
|
|
|
34,540 |
|
|
|
-23.6 |
% |
Net
income |
$ |
62,201 |
|
|
$ |
80,041 |
|
|
|
-22.3 |
% |
|
|
|
|
|
|
|
|
|
Basic earnings per share: |
$ |
2.06 |
|
|
$ |
2.63 |
|
|
|
|
Diluted earnings per
share: |
$ |
2.05 |
|
|
$ |
2.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
30,019,815 |
|
|
|
30,269,740 |
|
|
|
|
Diluted |
|
30,102,336 |
|
|
|
30,330,258 |
|
|
|
|
Common shares outstanding |
|
30,195,999 |
|
|
|
30,368,655 |
|
|
|
|
Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate
Paid (Unaudited)(Dollars in thousands)
|
Three Months Ended |
|
|
December 31, 2024 |
|
|
September 30, 2024 |
|
|
December 31, 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) |
$ |
6,103,264 |
|
|
$ |
91,545 |
|
|
5.97 |
% |
|
$ |
6,112,324 |
|
|
$ |
92,182 |
|
|
6.00 |
% |
|
$ |
6,071,644 |
|
|
$ |
89,922 |
|
|
5.88 |
% |
Securities (2) |
|
998,313 |
|
|
|
5,866 |
|
|
2.38 |
% |
|
|
986,041 |
|
|
|
5,523 |
|
|
2.27 |
% |
|
|
961,551 |
|
|
|
4,582 |
|
|
1.93 |
% |
FHLB stock |
|
16,385 |
|
|
|
360 |
|
|
8.75 |
% |
|
|
16,385 |
|
|
|
356 |
|
|
8.65 |
% |
|
|
16,385 |
|
|
|
341 |
|
|
8.25 |
% |
Interest-bearing deposits in other banks |
|
204,408 |
|
|
|
2,342 |
|
|
4.56 |
% |
|
|
183,027 |
|
|
|
2,356 |
|
|
5.12 |
% |
|
|
181,140 |
|
|
|
2,338 |
|
|
5.12 |
% |
Total interest-earning assets |
|
7,322,370 |
|
|
|
100,113 |
|
|
5.45 |
% |
|
|
7,297,777 |
|
|
|
100,417 |
|
|
5.48 |
% |
|
|
7,230,720 |
|
|
|
97,183 |
|
|
5.34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
54,678 |
|
|
|
|
|
|
|
|
54,843 |
|
|
|
|
|
|
|
|
61,146 |
|
|
|
|
|
|
Allowance for credit losses |
|
(69,291 |
) |
|
|
|
|
|
|
|
(67,906 |
) |
|
|
|
|
|
|
|
(68,319 |
) |
|
|
|
|
|
Other assets |
|
246,744 |
|
|
|
|
|
|
|
|
251,421 |
|
|
|
|
|
|
|
|
251,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
7,554,501 |
|
|
|
|
|
|
|
$ |
7,536,135 |
|
|
|
|
|
|
|
$ |
7,475,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand: interest-bearing |
$ |
79,784 |
|
|
$ |
26 |
|
|
0.13 |
% |
|
$ |
83,647 |
|
|
$ |
31 |
|
|
0.15 |
% |
|
$ |
86,679 |
|
|
$ |
29 |
|
|
0.13 |
% |
Money market and savings |
|
1,934,540 |
|
|
|
16,564 |
|
|
3.41 |
% |
|
|
1,885,799 |
|
|
|
17,863 |
|
|
3.77 |
% |
|
|
1,669,973 |
|
|
|
14,379 |
|
|
3.42 |
% |
Time deposits |
|
2,346,363 |
|
|
|
26,816 |
|
|
4.55 |
% |
|
|
2,427,737 |
|
|
|
29,259 |
|
|
4.79 |
% |
|
|
2,417,803 |
|
|
|
25,869 |
|
|
4.24 |
% |
Total interest-bearing deposits |
|
4,360,687 |
|
|
|
43,406 |
|
|
3.96 |
% |
|
|
4,397,183 |
|
|
|
47,153 |
|
|
4.27 |
% |
|
|
4,174,455 |
|
|
|
40,277 |
|
|
3.83 |
% |
Borrowings |
|
141,604 |
|
|
|
1,634 |
|
|
4.59 |
% |
|
|
143,479 |
|
|
|
1,561 |
|
|
4.33 |
% |
|
|
205,951 |
|
|
|
2,113 |
|
|
4.07 |
% |
Subordinated debentures |
|
130,567 |
|
|
|
1,624 |
|
|
4.97 |
% |
|
|
130,403 |
|
|
|
1,652 |
|
|
5.07 |
% |
|
|
129,933 |
|
|
|
1,653 |
|
|
5.09 |
% |
Total interest-bearing liabilities |
|
4,632,858 |
|
|
|
46,664 |
|
|
4.01 |
% |
|
|
4,671,065 |
|
|
|
50,366 |
|
|
4.29 |
% |
|
|
4,510,339 |
|
|
|
44,043 |
|
|
3.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities and equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits: noninterest-bearing |
|
1,967,789 |
|
|
|
|
|
|
|
|
1,908,833 |
|
|
|
|
|
|
|
|
2,025,212 |
|
|
|
|
|
|
Other liabilities |
|
162,064 |
|
|
|
|
|
|
|
|
171,987 |
|
|
|
|
|
|
|
|
177,321 |
|
|
|
|
|
|
Stockholders' equity |
|
791,790 |
|
|
|
|
|
|
|
|
784,250 |
|
|
|
|
|
|
|
|
762,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity |
$ |
7,554,501 |
|
|
|
|
|
|
|
$ |
7,536,135 |
|
|
|
|
|
|
|
$ |
7,475,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
53,449 |
|
|
|
|
|
|
|
$ |
50,051 |
|
|
|
|
|
|
|
$ |
53,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
deposits |
|
|
|
|
|
|
2.73 |
% |
|
|
|
|
|
|
|
2.97 |
% |
|
|
|
|
|
|
|
2.58 |
% |
Net interest spread
(taxable equivalent basis) |
|
|
|
|
|
|
1.44 |
% |
|
|
|
|
|
|
|
1.19 |
% |
|
|
|
|
|
|
|
1.47 |
% |
Net interest margin
(taxable equivalent basis) |
|
|
|
|
|
|
2.91 |
% |
|
|
|
|
|
|
|
2.74 |
% |
|
|
|
|
|
|
|
2.92 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
Twelve Months Ended |
|
|
December 31, 2024 |
|
|
December 31, 2023 |
|
|
|
|
|
Interest |
|
Average |
|
|
|
|
|
Interest |
|
Average |
|
|
Average |
|
|
Income / |
|
Yield / |
|
|
Average |
|
|
Income / |
|
Yield / |
|
|
Balance |
|
|
Expense |
|
Rate |
|
|
Balance |
|
|
Expense |
|
Rate |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable (1) |
$ |
6,110,713 |
|
|
$ |
366,153 |
|
|
5.99 |
% |
|
$ |
5,968,339 |
|
|
$ |
339,811 |
|
|
5.69 |
% |
Securities (2) |
|
983,434 |
|
|
|
21,583 |
|
|
2.22 |
% |
|
|
967,231 |
|
|
|
16,938 |
|
|
1.78 |
% |
FHLB stock |
|
16,385 |
|
|
|
1,437 |
|
|
8.76 |
% |
|
|
16,385 |
|
|
|
1,229 |
|
|
7.50 |
% |
Interest-bearing deposits in other banks |
|
192,342 |
|
|
|
9,610 |
|
|
5.00 |
% |
|
|
230,835 |
|
|
|
11,350 |
|
|
4.92 |
% |
Total interest-earning assets |
|
7,302,874 |
|
|
|
398,783 |
|
|
5.46 |
% |
|
|
7,182,790 |
|
|
|
369,328 |
|
|
5.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
55,830 |
|
|
|
|
|
|
|
|
62,049 |
|
|
|
|
|
|
Allowance for credit losses |
|
(68,553 |
) |
|
|
|
|
|
|
|
(70,501 |
) |
|
|
|
|
|
Other assets |
|
248,820 |
|
|
|
|
|
|
|
|
240,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
7,538,971 |
|
|
|
|
|
|
|
$ |
7,415,117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand: interest-bearing |
$ |
83,807 |
|
|
$ |
119 |
|
|
0.14 |
% |
|
$ |
97,388 |
|
|
$ |
117 |
|
|
0.12 |
% |
Money market and savings |
|
1,870,541 |
|
|
|
68,304 |
|
|
3.65 |
% |
|
|
1,547,911 |
|
|
|
44,066 |
|
|
2.85 |
% |
Time deposits |
|
2,433,516 |
|
|
|
114,269 |
|
|
4.70 |
% |
|
|
2,371,520 |
|
|
|
90,525 |
|
|
3.82 |
% |
Total interest-bearing deposits |
|
4,387,864 |
|
|
|
182,692 |
|
|
4.16 |
% |
|
|
4,016,819 |
|
|
|
134,708 |
|
|
3.35 |
% |
Borrowings |
|
154,193 |
|
|
|
6,746 |
|
|
4.38 |
% |
|
|
197,409 |
|
|
|
6,867 |
|
|
3.48 |
% |
Subordinated debentures |
|
130,325 |
|
|
|
6,571 |
|
|
5.04 |
% |
|
|
129,708 |
|
|
|
6,482 |
|
|
5.00 |
% |
Total interest-bearing liabilities |
|
4,672,382 |
|
|
|
196,009 |
|
|
4.20 |
% |
|
|
4,343,936 |
|
|
|
148,057 |
|
|
3.41 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities and equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits: noninterest-bearing |
|
1,920,492 |
|
|
|
|
|
|
|
|
2,173,813 |
|
|
|
|
|
|
Other liabilities |
|
165,288 |
|
|
|
|
|
|
|
|
149,460 |
|
|
|
|
|
|
Stockholders' equity |
|
780,809 |
|
|
|
|
|
|
|
|
747,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity |
$ |
7,538,971 |
|
|
|
|
|
|
|
$ |
7,415,117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
202,774 |
|
|
|
|
|
|
|
$ |
221,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
deposits |
|
|
|
|
|
|
2.90 |
% |
|
|
|
|
|
|
|
2.18 |
% |
Net interest spread
(taxable equivalent basis) |
|
|
|
|
|
|
1.27 |
% |
|
|
|
|
|
|
|
1.74 |
% |
Net interest margin
(taxable equivalent basis) |
|
|
|
|
|
|
2.78 |
% |
|
|
|
|
|
|
|
3.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
Hanmi Financial
Corporation |
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
Assets |
$ |
7,677,925 |
|
|
$ |
7,712,299 |
|
|
$ |
7,586,347 |
|
|
$ |
7,512,046 |
|
|
$ |
7,570,341 |
|
Less goodwill and other intangible assets |
|
(11,031 |
) |
|
|
(11,031 |
) |
|
|
(11,048 |
) |
|
|
(11,074 |
) |
|
|
(11,099 |
) |
Tangible assets |
$ |
7,666,894 |
|
|
$ |
7,701,268 |
|
|
$ |
7,575,299 |
|
|
$ |
7,500,972 |
|
|
$ |
7,559,242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity (1) |
$ |
732,174 |
|
|
$ |
736,709 |
|
|
$ |
707,059 |
|
|
$ |
703,100 |
|
|
$ |
701,891 |
|
Less goodwill and other intangible assets |
|
(11,031 |
) |
|
|
(11,031 |
) |
|
|
(11,048 |
) |
|
|
(11,074 |
) |
|
|
(11,099 |
) |
Tangible stockholders' equity
(1) |
$ |
721,143 |
|
|
$ |
725,678 |
|
|
$ |
696,011 |
|
|
$ |
692,026 |
|
|
$ |
690,792 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity to
assets |
|
9.54 |
% |
|
|
9.55 |
% |
|
|
9.32 |
% |
|
|
9.36 |
% |
|
|
9.27 |
% |
Tangible common equity to
tangible assets (1) |
|
9.41 |
% |
|
|
9.42 |
% |
|
|
9.19 |
% |
|
|
9.23 |
% |
|
|
9.14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
30,195,999 |
|
|
|
30,196,755 |
|
|
|
30,272,110 |
|
|
|
30,276,358 |
|
|
|
30,368,655 |
|
Tangible common equity per
common share |
$ |
23.88 |
|
|
$ |
24.03 |
|
|
$ |
22.99 |
|
|
$ |
22.86 |
|
|
$ |
22.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) There were no preferred
shares outstanding at the periods indicated. |
|
|
|
|
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