Hanmi Reports 2024 Second Quarter Results
Hanmi Financial (NASDAQ: HAFC) announced its Q2 2024 financial results. Net income was $14.5M ($0.48/share), down from $15.2M ($0.50/share) in Q1 2024. ROA was 0.77% and ROE was 7.50%, compared to 0.81% and 7.90% in Q1. Though net income declined, business activity improved with a 17% growth in loan production and a rise in demand deposit accounts. Net interest income fell 4.0% to $48.6M, while the net interest margin decreased to 2.69%. Total loans receivable were stable at $6.18B. Deposits declined 0.7% to $6.33B. Noninterest income grew 4.2% to $8.1M, while noninterest expenses fell 3.2% to $35.3M. Asset quality improved, with criticized loans dropping 17.6%. However, nonperforming assets increased to 0.26% of total assets. The allowance for credit losses slightly decreased to $67.7M. As of June 30, 2024, Hanmi maintained a strong balance sheet and capital ratios, positioning it well for future growth.
- 17% growth in loan production.
- Noninterest income increased by 4.2%.
- Noninterest expenses decreased by 3.2%.
- Criticized loans decreased by 17.6%.
- Strong capital ratios with a total risk-based capital ratio of 15.24%.
- Net income decreased by 4.6% from Q1 2024.
- Net interest income decreased by 4.0%.
- Deposits decreased by 0.7%.
- Allowance for credit losses decreased to $67.7M.
- Nonperforming assets increased to 0.26% of total assets.
Insights
Financial Performance Analysis:
Hanmi Financial Corporation's Q2 2024 results indicate a slight dip in performance compared to the previous quarter. Net income declined from $15.2 million in Q1 2024 to $14.5 million in Q2 2024. This reduction is mainly due to lower net interest income and higher credit loss expenses. However, it's noteworthy that Hanmi managed to decrease noninterest expenses by 3.2%, which shows effective cost management.
From an investor's perspective, the decreased net interest margin (from 2.78% in Q1 2024 to 2.69% in Q2 2024) may raise concerns, especially given the competitive banking environment. On a positive note, the bank's asset quality remained strong with a significant reduction in criticized loans by 17.6%, indicating prudent risk management.
Overall, while the decline in some financial metrics might be concerning, Hanmi's strong asset quality and effective cost control strategies could help the institution navigate the current economic challenges effectively.
Market Position and Growth Prospects:
Hanmi's Q2 2024 report highlights a strategic focus on relationship banking, resulting in a 17% increase in loan production and growth in demand deposit accounts. This aligns with the bank's efforts to expand its market share. Additionally, the bank's investment in technology to enhance the customer experience and achieve operational efficiencies reflects a forward-thinking approach to capturing growth opportunities.
However, a slight decrease in deposits (0.7%) and the increase in the cost of interest-bearing deposits suggest that Hanmi might face challenges in maintaining its funding base amid rising interest rates. The bank's ability to attract and retain noninterest-bearing deposits, which constitute 31.0% of total deposits, will be important in this scenario.
For retail investors, Hanmi's emphasis on technology and operational efficiency presents a long-term growth opportunity, though short-term challenges related to deposit costs and margin pressures should be monitored closely.
Credit Quality and Risk Management:
Hanmi Financial Corporation's credit quality metrics for Q2 2024 indicate a balanced approach to risk management. The decrease in criticized loans by 17.6% and a stable allowance for credit losses (1.10% of loans) suggest that the bank is effectively managing credit risks. However, the increase in nonperforming assets to $20.0 million (up from $14.1 million in Q1 2024) and the rise in nonperforming loans to 0.31% from 0.23% require careful monitoring.
The higher credit loss expense of $1.0 million in Q2, compared with $0.2 million in the previous quarter, highlights the ongoing need to provision for potential loan losses amidst economic uncertainties. Despite these challenges, Hanmi’s strong capital ratios, with a total risk-based capital ratio of 15.24%, provide a solid buffer to absorb potential losses.
For investors, Hanmi's commitment to maintaining high asset quality and strong capital positions is reassuring. However, the uptick in nonperforming assets warrants a cautious approach, especially in the context of economic volatility.
LOS ANGELES, July 23, 2024 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the second quarter of 2024.
Net income for the second quarter of 2024 was
CEO Commentary
“Our second quarter results demonstrate that while the economic environment has been challenging, we are observing improved business activity and stabilizing margin pressure,” said Bonnie Lee, President and Chief Executive Officer of Hanmi. Our relationship banking model has enabled us to attract new customers, resulting in
“As we look to the second half of 2024, we are progressing with a robust balance sheet, ample liquidity and strong capital ratios. We continue to prioritize our customers by enhancing their Hanmi experience through strategic technology investments, which are also enabling us to achieve operational efficiencies. Finally, our prudent expense and credit management has positioned Hanmi to capitalize on the growth opportunities ahead. I am thankful to our team of bankers and support staff who continue to foster meaningful relationships with our customers and enhance our franchise value.”
Second Quarter 2024 Highlights:
- Second quarter net income was
$14.5 million , or$0.48 per diluted share, compared with$15.2 million , or$0.50 per diluted share for the first quarter of 2024. The decline in net income reflects lower net interest income, and a higher credit loss expense, partially offset by lower noninterest expenses. - Loans receivable were
$6.18 billion at June 30, 2024, essentially unchanged from the end of the first quarter of 2024; loan production for the second quarter was$273.9 million with a weighted average interest rate of8.31% . - Deposits were
$6.33 billion at June 30, 2024, down0.7% from the end of the first quarter of 2024; noninterest-bearing demand deposits were31.0% of total deposits at the end of the second quarter. - Net interest income for the second quarter was
$48.6 million , down4.0% from the first quarter of 2024, and net interest margin (taxable equivalent) was2.69% for the second quarter, down 9 basis points; the average yield on loans decreased 1 basis point, while the cost of interest-bearing deposits increased 11 basis points. - Noninterest income for the second quarter was
$8.1 million , up$0.4 million , or4.2% , from the first quarter of 2024. - Noninterest expenses were
$35.3 million for the second quarter, down3.2% from the first quarter of 2024, primarily reflecting a decrease in salaries and benefits. - Asset quality remained favorable with criticized loans declining
17.6% from the first quarter of 2024, to$70.9 million , or1.1% of loans. Nonperforming assets rose 7 basis points, to0.26% of total assets, and net charge offs continued to be low at$1.8 million , or0.12% of average loans (annualized).
For more information about Hanmi, please see the Q2 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 | ||||||||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | Q2-24 | Q2-24 | |||||||||||||||||||||
2024 | 2024 | 2023 | 2023 | 2023 | vs. Q1-24 | vs. Q2-23 | |||||||||||||||||||||
Net income | $ | 14,451 | $ | 15,164 | $ | 18,633 | $ | 18,796 | $ | 20,620 | $ | (713 | ) | $ | (6,169 | ) | |||||||||||
Net income per diluted common share | $ | 0.48 | $ | 0.50 | $ | 0.61 | $ | 0.62 | $ | 0.67 | $ | (0.02 | ) | $ | (0.19 | ) | |||||||||||
Assets | $ | 7,586,347 | $ | 7,512,046 | $ | 7,570,341 | $ | 7,350,140 | $ | 7,344,924 | $ | 74,301 | $ | 241,423 | |||||||||||||
Loans receivable | $ | 6,176,359 | $ | 6,177,840 | $ | 6,182,434 | $ | 6,020,785 | $ | 5,965,171 | $ | (1,481 | ) | $ | 211,188 | ||||||||||||
Deposits | $ | 6,329,340 | $ | 6,376,060 | $ | 6,280,574 | $ | 6,260,072 | $ | 6,315,768 | $ | (46,720 | ) | $ | 13,572 | ||||||||||||
Return on average assets | 0.77 | % | 0.81 | % | 0.99 | % | 1.00 | % | 1.12 | % | -0.04 | -0.35 | |||||||||||||||
Return on average stockholders' equity | 7.50 | % | 7.90 | % | 9.70 | % | 9.88 | % | 11.14 | % | -0.40 | -3.64 | |||||||||||||||
Net interest margin | 2.69 | % | 2.78 | % | 2.92 | % | 3.03 | % | 3.11 | % | -0.09 | -0.42 | |||||||||||||||
Efficiency ratio (1) | 62.24 | % | 62.42 | % | 58.86 | % | 51.82 | % | 54.11 | % | -0.18 | 8.13 | |||||||||||||||
Tangible common equity to tangible assets (2) | 9.19 | % | 9.23 | % | 9.14 | % | 8.89 | % | 8.96 | % | -0.04 | 0.23 | |||||||||||||||
Tangible common equity per common share (2) | $ | 22.99 | $ | 22.86 | $ | 22.75 | $ | 21.45 | $ | 21.56 | 0.13 | 1.43 | |||||||||||||||
(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 second quarter decreased to
As of or For the Three Months Ended (in thousands) | Percentage Change | ||||||||||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Q2-24 | Q2-24 | |||||||||||||||||||||
Net Interest Income | 2024 | 2024 | 2023 | 2023 | 2023 | vs. Q1-24 | vs. Q2-23 | ||||||||||||||||||||
Interest and fees on loans receivable(1) | $ | 90,752 | $ | 91,674 | $ | 89,922 | $ | 85,398 | $ | 83,567 | -1.0 | % | 8.6 | % | |||||||||||||
Interest on securities | 5,238 | 4,955 | 4,583 | 4,204 | 4,126 | 5.7 | % | 27.0 | % | ||||||||||||||||||
Dividends on FHLB stock | 357 | 361 | 341 | 317 | 283 | -1.1 | % | 26.1 | % | ||||||||||||||||||
Interest on deposits in other banks | 2,313 | 2,604 | 2,337 | 4,153 | 2,794 | -11.2 | % | -17.2 | % | ||||||||||||||||||
Total interest and dividend income | $ | 98,660 | $ | 99,594 | $ | 97,183 | $ | 94,072 | $ | 90,770 | -0.9 | % | 8.7 | % | |||||||||||||
Interest on deposits | 46,495 | 45,638 | 40,277 | 36,818 | 32,115 | 1.9 | % | 44.8 | % | ||||||||||||||||||
Interest on borrowings | 1,896 | 1,655 | 2,112 | 753 | 1,633 | 14.6 | % | 16.1 | % | ||||||||||||||||||
Interest on subordinated debentures | 1,649 | 1,646 | 1,654 | 1,646 | 1,600 | 0.2 | % | 3.1 | % | ||||||||||||||||||
Total interest expense | 50,040 | 48,939 | 44,043 | 39,217 | 35,348 | 2.2 | % | 41.6 | % | ||||||||||||||||||
Net interest income | $ | 48,620 | $ | 50,655 | $ | 53,140 | $ | 54,855 | $ | 55,422 | -4.0 | % | -12.3 | % | |||||||||||||
(1) Includes loans held for sale. |
For the Three Months Ended (in thousands) | Percentage Change | ||||||||||||||||||||||||||
Average Earning Assets and | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Q2-24 | Q2-24 | ||||||||||||||||||||
Interest-bearing Liabilities | 2024 | 2024 | 2023 | 2023 | 2023 | vs. Q1-24 | vs. Q2-23 | ||||||||||||||||||||
Loans receivable (1) | $ | 6,089,440 | $ | 6,137,888 | $ | 6,071,644 | $ | 5,915,423 | $ | 5,941,071 | -0.8 | % | 2.5 | % | |||||||||||||
Securities | 979,671 | 969,520 | 961,551 | 955,473 | 971,531 | 1.0 | % | 0.8 | % | ||||||||||||||||||
FHLB stock | 16,385 | 16,385 | 16,385 | 16,385 | 16,385 | 0.0 | % | 0.0 | % | ||||||||||||||||||
Interest-bearing deposits in other banks | 180,177 | 201,724 | 181,140 | 317,498 | 230,974 | -10.7 | % | -22.0 | % | ||||||||||||||||||
Average interest-earning assets | $ | 7,265,673 | $ | 7,325,517 | $ | 7,230,720 | $ | 7,204,779 | $ | 7,159,961 | -0.8 | % | 1.5 | % | |||||||||||||
Demand: interest-bearing | $ | 85,443 | $ | 86,401 | $ | 86,679 | $ | 94,703 | $ | 99,057 | -1.1 | % | -13.7 | % | |||||||||||||
Money market and savings | 1,845,870 | 1,815,085 | 1,669,973 | 1,601,826 | 1,463,304 | 1.7 | % | 26.1 | % | ||||||||||||||||||
Time deposits | 2,453,154 | 2,507,830 | 2,417,803 | 2,438,112 | 2,403,685 | -2.2 | % | 2.1 | % | ||||||||||||||||||
Average interest-bearing deposits | 4,384,467 | 4,409,316 | 4,174,455 | 4,134,641 | 3,966,046 | -0.6 | % | 10.6 | % | ||||||||||||||||||
Borrowings | 169,525 | 162,418 | 205,951 | 120,381 | 196,776 | 4.4 | % | -13.8 | % | ||||||||||||||||||
Subordinated debentures | 130,239 | 130,088 | 129,933 | 129,780 | 129,631 | 0.1 | % | 0.5 | % | ||||||||||||||||||
Average interest-bearing liabilities | $ | 4,684,231 | $ | 4,701,822 | $ | 4,510,339 | $ | 4,384,802 | $ | 4,292,453 | -0.4 | % | 9.1 | % | |||||||||||||
Average Noninterest Bearing Deposits | |||||||||||||||||||||||||||
Demand deposits - noninterest bearing | $ | 1,883,765 | $ | 1,921,189 | $ | 2,025,212 | $ | 2,136,156 | $ | 2,213,171 | -1.9 | % | -14.9 | % | |||||||||||||
(1) Includes loans held for sale. |
For the Three Months Ended | Yield/Rate Change | ||||||||||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Q2-24 | Q2-24 | |||||||||||||||||||||
Average Yields and Rates | 2024 | 2024 | 2023 | 2023 | 2023 | vs. Q1-24 | vs. Q2-23 | ||||||||||||||||||||
Loans receivable(1) | 5.99 | % | 6.00 | % | 5.88 | % | 5.73 | % | 5.64 | % | -0.01 | 0.35 | |||||||||||||||
Securities (2) | 2.17 | % | 2.07 | % | 1.93 | % | 1.79 | % | 1.73 | % | 0.10 | 0.44 | |||||||||||||||
FHLB stock | 8.77 | % | 8.87 | % | 8.25 | % | 7.67 | % | 6.92 | % | -0.10 | 1.85 | |||||||||||||||
Interest-bearing deposits in other banks | 5.16 | % | 5.19 | % | 5.12 | % | 5.19 | % | 4.85 | % | -0.03 | 0.31 | |||||||||||||||
Interest-earning assets | 5.46 | % | 5.47 | % | 5.34 | % | 5.19 | % | 5.09 | % | -0.01 | 0.37 | |||||||||||||||
Interest-bearing deposits | 4.27 | % | 4.16 | % | 3.83 | % | 3.53 | % | 3.25 | % | 0.11 | 1.02 | |||||||||||||||
Borrowings | 4.50 | % | 4.10 | % | 4.07 | % | 2.48 | % | 3.33 | % | 0.40 | 1.17 | |||||||||||||||
Subordinated debentures | 5.07 | % | 5.06 | % | 5.09 | % | 5.07 | % | 4.94 | % | 0.01 | 0.13 | |||||||||||||||
Interest-bearing liabilities | 4.30 | % | 4.19 | % | 3.88 | % | 3.55 | % | 3.30 | % | 0.11 | 1.00 | |||||||||||||||
Net interest margin (taxable equivalent basis) | 2.69 | % | 2.78 | % | 2.92 | % | 3.03 | % | 3.11 | % | -0.09 | -0.42 | |||||||||||||||
Cost of deposits | 2.98 | % | 2.90 | % | 2.58 | % | 2.33 | % | 2.08 | % | 0.08 | 0.90 | |||||||||||||||
(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 second quarter was
Noninterest income for the second quarter increased
For the Three Months Ended (in thousands) | Percentage Change | ||||||||||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Q2-24 | Q2-24 | |||||||||||||||||||||
Noninterest Income | 2024 | 2024 | 2023 | 2023 | 2023 | vs. Q1-24 | vs. Q2-23 | ||||||||||||||||||||
Service charges on deposit accounts | $ | 2,429 | $ | 2,450 | $ | 2,391 | $ | 2,605 | $ | 2,571 | -0.9 | % | -5.5 | % | |||||||||||||
Trade finance and other service charges and fees | 1,277 | 1,414 | 1,245 | 1,155 | 1,173 | -9.7 | % | 8.9 | % | ||||||||||||||||||
Servicing income | 796 | 712 | 772 | 838 | 825 | 11.8 | % | -3.5 | % | ||||||||||||||||||
Bank-owned life insurance income (expense) | 638 | 304 | (29 | ) | 280 | 271 | 109.9 | % | 135.4 | % | |||||||||||||||||
All other operating income | 908 | 928 | 853 | 1,178 | 1,811 | -2.2 | % | -49.9 | % | ||||||||||||||||||
Service charges, fees & other | 6,048 | 5,808 | 5,232 | 6,056 | 6,651 | 4.1 | % | -9.1 | % | ||||||||||||||||||
Gain on sale of SBA loans | 1,644 | 1,482 | 1,448 | 1,172 | 1,212 | 10.9 | % | 35.6 | % | ||||||||||||||||||
Gain on sale of mortgage loans | 365 | 443 | - | - | - | -17.6 | % | 100.0 | % | ||||||||||||||||||
Net gain (loss) on sales of securities | - | - | - | - | (1,871 | ) | 0.0 | % | -100.0 | % | |||||||||||||||||
Gain (loss) on sale of bank premises | - | - | - | 4,000 | - | 0.0 | % | 0.0 | % | ||||||||||||||||||
Legal settlement | - | - | - | - | 1,943 | 0.0 | % | -100.0 | % | ||||||||||||||||||
Total noninterest income | $ | 8,057 | $ | 7,733 | $ | 6,680 | $ | 11,228 | $ | 7,935 | 4.2 | % | 1.5 | % |
Noninterest expense for the second quarter decreased to
For the Three Months Ended (in thousands) | Percentage Change | ||||||||||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Q2-24 | Q2-24 | |||||||||||||||||||||
2024 | 2024 | 2023 | 2023 | 2023 | vs. Q1-24 | vs. Q2-23 | |||||||||||||||||||||
Noninterest Expense | |||||||||||||||||||||||||||
Salaries and employee benefits | $ | 20,434 | $ | 21,585 | $ | 20,062 | $ | 20,361 | $ | 20,365 | -5.3 | % | 0.3 | % | |||||||||||||
Occupancy and equipment | 4,348 | 4,537 | 4,604 | 4,825 | 4,500 | -4.2 | % | -3.4 | % | ||||||||||||||||||
Data processing | 3,686 | 3,551 | 3,487 | 3,490 | 3,465 | 3.8 | % | 6.4 | % | ||||||||||||||||||
Professional fees | 1,749 | 1,893 | 1,977 | 1,568 | 1,376 | -7.6 | % | 27.1 | % | ||||||||||||||||||
Supplies and communication | 570 | 601 | 613 | 552 | 638 | -5.2 | % | -10.7 | % | ||||||||||||||||||
Advertising and promotion | 669 | 907 | 990 | 534 | 748 | -26.2 | % | -10.6 | % | ||||||||||||||||||
All other operating expenses | 3,251 | 3,160 | 3,252 | 2,852 | 3,243 | 2.9 | % | 0.2 | % | ||||||||||||||||||
Subtotal | 34,707 | 36,234 | 34,985 | 34,182 | 34,335 | -4.2 | % | 1.1 | % | ||||||||||||||||||
Branch consolidation expense | 301 | - | - | - | - | 100.0 | % | 100.0 | % | ||||||||||||||||||
Other real estate owned expense | 6 | 22 | 15 | 16 | 4 | -72.7 | % | 50.0 | % | ||||||||||||||||||
Repossessed personal property expense (income) | 262 | 189 | 211 | 47 | (59 | ) | 38.6 | % | -544.1 | % | |||||||||||||||||
Total noninterest expense | $ | 35,276 | $ | 36,445 | $ | 35,211 | $ | 34,245 | $ | 34,280 | -3.2 | % | 2.9 | % |
Hanmi recorded a provision for income taxes of
Financial Position
Total assets at June 30, 2024 increased
Loans receivable, before allowance for credit losses, were
As of (in thousands) | Percentage Change | ||||||||||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Q2-24 | Q2-24 | |||||||||||||||||||||
2024 | 2024 | 2023 | 2023 | 2023 | vs. Q1-24 | vs. Q2-23 | |||||||||||||||||||||
Loan Portfolio | |||||||||||||||||||||||||||
Commercial real estate loans | $ | 3,888,505 | $ | 3,878,677 | $ | 3,889,739 | $ | 3,773,015 | $ | 3,738,325 | 0.3 | % | 4.0 | % | |||||||||||||
Residential/consumer loans | 954,209 | 970,362 | 962,661 | 926,326 | 886,984 | -1.7 | % | 7.6 | % | ||||||||||||||||||
Commercial and industrial loans | 802,372 | 774,851 | 747,819 | 728,792 | 753,456 | 3.6 | % | 6.5 | % | ||||||||||||||||||
Equipment finance | 531,273 | 553,950 | 582,215 | 592,652 | 586,406 | -4.1 | % | -9.4 | % | ||||||||||||||||||
Loans receivable | 6,176,359 | 6,177,840 | 6,182,434 | 6,020,785 | 5,965,171 | 0.0 | % | 3.5 | % | ||||||||||||||||||
Loans held for sale | 10,467 | 3,999 | 12,013 | 11,767 | 7,293 | 161.7 | % | 43.5 | % | ||||||||||||||||||
Total | $ | 6,186,826 | $ | 6,181,839 | $ | 6,194,447 | $ | 6,032,552 | $ | 5,972,464 | 0.1 | % | 3.6 | % |
As of | |||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | |||||||||||||||
2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
Composition of Loan Portfolio | |||||||||||||||||||
Commercial real estate loans | 62.9 | % | 62.7 | % | 62.8 | % | 62.5 | % | 62.6 | % | |||||||||
Residential/consumer loans | 15.4 | % | 15.7 | % | 15.5 | % | 15.4 | % | 14.9 | % | |||||||||
Commercial and industrial loans | 13.0 | % | 12.5 | % | 12.1 | % | 12.1 | % | 12.6 | % | |||||||||
Equipment finance | 8.5 | % | 9.0 | % | 9.4 | % | 9.8 | % | 9.8 | % | |||||||||
Loans receivable | 99.8 | % | 99.9 | % | 99.8 | % | 99.8 | % | 99.9 | % | |||||||||
Loans held for sale | 0.2 | % | 0.1 | % | 0.2 | % | 0.2 | % | 0.1 | % | |||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
New loan production was
Commercial real estate loan production for the second quarter of 2024 was
For the Three Months Ended (in thousands) | |||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | |||||||||||||||
2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
New Loan Production | |||||||||||||||||||
Commercial real estate loans | $ | 87,632 | $ | 60,085 | $ | 178,157 | $ | 106,151 | $ | 40,989 | |||||||||
Commercial and industrial loans | 59,007 | 50,789 | 52,079 | 67,907 | 36,322 | ||||||||||||||
SBA loans | 54,486 | 30,817 | 48,432 | 36,109 | 30,926 | ||||||||||||||
Equipment finance | 42,594 | 39,155 | 57,334 | 71,075 | 50,905 | ||||||||||||||
Residential/consumer loans | 30,194 | 53,115 | 53,465 | 55,026 | 100,161 | ||||||||||||||
subtotal | 273,913 | 233,961 | 389,467 | 336,268 | 259,303 | ||||||||||||||
Payoffs | (148,400 | ) | (86,250 | ) | (77,961 | ) | (62,140 | ) | (120,609 | ) | |||||||||
Amortization | (83,640 | ) | (90,711 | ) | (106,610 | ) | (116,411 | ) | (102,248 | ) | |||||||||
Loan sales | (42,945 | ) | (55,321 | ) | (29,861 | ) | (22,496 | ) | (20,933 | ) | |||||||||
Net line utilization | 1,929 | (4,150 | ) | (11,609 | ) | (70,238 | ) | (28,092 | ) | ||||||||||
Charge-offs & OREO | (2,338 | ) | (2,123 | ) | (1,777 | ) | (9,369 | ) | (2,708 | ) | |||||||||
Loans receivable-beginning balance | 6,177,840 | 6,182,434 | 6,020,785 | 5,965,171 | 5,980,458 | ||||||||||||||
Loans receivable-ending balance | $ | 6,176,359 | $ | 6,177,840 | $ | 6,182,434 | $ | 6,020,785 | $ | 5,965,171 |
Deposits were
As of (in thousands) | Percentage Change | ||||||||||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Q2-24 | Q2-24 | |||||||||||||||||||||
2024 | 2024 | 2023 | 2023 | 2023 | vs. Q1-24 | vs. Q2-23 | |||||||||||||||||||||
Deposit Portfolio | |||||||||||||||||||||||||||
Demand: noninterest-bearing | $ | 1,959,963 | $ | 1,933,060 | $ | 2,003,596 | $ | 2,161,238 | $ | 2,206,078 | 1.4 | % | -11.2 | % | |||||||||||||
Demand: interest-bearing | 82,981 | 87,374 | 87,452 | 88,133 | 97,076 | -5.0 | % | -14.5 | % | ||||||||||||||||||
Money market and savings | 1,834,797 | 1,859,865 | 1,734,658 | 1,576,006 | 1,580,691 | -1.3 | % | 16.1 | % | ||||||||||||||||||
Time deposits | 2,451,599 | 2,495,761 | 2,454,868 | 2,434,695 | 2,431,923 | -1.8 | % | 0.8 | % | ||||||||||||||||||
Total deposits | $ | 6,329,340 | $ | 6,376,060 | $ | 6,280,574 | $ | 6,260,072 | $ | 6,315,768 | -0.7 | % | 0.2 | % |
As of | |||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | |||||||||||||||
2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
Composition of Deposit Portfolio | |||||||||||||||||||
Demand: noninterest-bearing | 31.0 | % | 30.3 | % | 31.9 | % | 34.5 | % | 34.9 | % | |||||||||
Demand: interest-bearing | 1.3 | % | 1.4 | % | 1.4 | % | 1.4 | % | 1.5 | % | |||||||||
Money market and savings | 29.0 | % | 29.2 | % | 27.6 | % | 25.2 | % | 25.0 | % | |||||||||
Time deposits | 38.7 | % | 39.1 | % | 39.1 | % | 38.9 | % | 38.6 | % | |||||||||
Total deposits | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Stockholders’ equity at June 30, 2024 was
Hanmi and the Bank exceeded minimum regulatory capital requirements, and the Bank continues to exceed the minimum for the “well capitalized” category. At June 30, 2024, Hanmi’s preliminary common equity tier 1 capital ratio was
As of | Ratio Change | ||||||||||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Q2-24 | Q2-24 | |||||||||||||||||||||
2024 | 2024 | 2023 | 2023 | 2023 | vs. Q1-24 | vs. Q2-23 | |||||||||||||||||||||
Regulatory Capital ratios (1) | |||||||||||||||||||||||||||
Hanmi Financial | |||||||||||||||||||||||||||
Total risk-based capital | 15.24 | % | 15.20 | % | 14.95 | % | 15.07 | % | 15.11 | % | 0.04 | 0.13 | |||||||||||||||
Tier 1 risk-based capital | 12.46 | % | 12.40 | % | 12.20 | % | 12.30 | % | 12.25 | % | 0.06 | 0.21 | |||||||||||||||
Common equity tier 1 capital | 12.11 | % | 12.05 | % | 11.86 | % | 11.95 | % | 11.90 | % | 0.06 | 0.21 | |||||||||||||||
Tier 1 leverage capital ratio | 10.51 | % | 10.36 | % | 10.37 | % | 10.27 | % | 10.22 | % | 0.15 | 0.29 | |||||||||||||||
Hanmi Bank | |||||||||||||||||||||||||||
Total risk-based capital | 14.51 | % | 14.50 | % | 14.27 | % | 14.42 | % | 14.45 | % | 0.01 | 0.06 | |||||||||||||||
Tier 1 risk-based capital | 13.47 | % | 13.44 | % | 13.26 | % | 13.42 | % | 13.39 | % | 0.03 | 0.08 | |||||||||||||||
Common equity tier 1 capital | 13.47 | % | 13.44 | % | 13.26 | % | 13.42 | % | 13.39 | % | 0.03 | 0.08 | |||||||||||||||
Tier 1 leverage capital ratio | 11.41 | % | 11.29 | % | 11.32 | % | 11.25 | % | 11.21 | % | 0.12 | 0.20 | |||||||||||||||
(1) Preliminary ratios for June 30, 2024 | |||||||||||||||||||||||||||
Asset Quality
Loans 30 to 89 days past due and still accruing were
Criticized loans totaled
Classified loans were
Nonperforming loans were
Nonperforming assets were
Gross charge-offs for the second quarter of 2024 were
The allowance for credit losses was
As of or for the Three Months Ended (in thousands) | Amount Change | ||||||||||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Q2-24 | Q2-24 | |||||||||||||||||||||
2024 | 2024 | 2023 | 2023 | 2023 | vs. Q1-24 | vs. Q2-23 | |||||||||||||||||||||
Asset Quality Data and Ratios | |||||||||||||||||||||||||||
Delinquent loans: | |||||||||||||||||||||||||||
Loans, 30 to 89 days past due and still accruing | $ | 13,844 | $ | 15,839 | $ | 10,263 | $ | 9,545 | $ | 13,749 | $ | (1,995 | ) | $ | 95 | ||||||||||||
Delinquent loans to total loans | 0.22 | % | 0.26 | % | 0.17 | % | 0.16 | % | 0.23 | % | -0.04 | -0.01 | |||||||||||||||
Criticized loans: | |||||||||||||||||||||||||||
Special mention | $ | 36,921 | $ | 62,317 | $ | 65,314 | $ | 76,473 | $ | 44,632 | $ | (25,396 | ) | $ | (7,711 | ) | |||||||||||
Classified | 33,945 | 23,670 | 31,367 | 33,134 | 38,840 | 10,275 | (4,895 | ) | |||||||||||||||||||
Total criticized loans | $ | 70,866 | $ | 85,987 | $ | 96,681 | $ | 109,607 | $ | 83,472 | $ | (15,121 | ) | $ | (12,606 | ) | |||||||||||
Nonperforming assets: | |||||||||||||||||||||||||||
Nonaccrual loans | $ | 19,245 | $ | 14,025 | $ | 15,474 | $ | 15,783 | $ | 22,178 | $ | 5,220 | $ | (2,933 | ) | ||||||||||||
Loans 90 days or more past due and still accruing | - | - | - | - | - | - | - | ||||||||||||||||||||
Nonperforming loans | 19,245 | 14,025 | 15,474 | 15,783 | 22,178 | 5,220 | (2,933 | ) | |||||||||||||||||||
Other real estate owned, net | 772 | 117 | 117 | 117 | 117 | 655 | 655 | ||||||||||||||||||||
Nonperforming assets* | $ | 20,017 | $ | 14,142 | $ | 15,591 | $ | 15,900 | $ | 22,295 | $ | 5,875 | $ | (2,278 | ) | ||||||||||||
Nonperforming assets to assets* | 0.26 | % | 0.19 | % | 0.21 | % | 0.22 | % | 0.30 | % | 0.07 | -0.04 | |||||||||||||||
Nonperforming loans to total loans | 0.31 | % | 0.23 | % | 0.25 | % | 0.26 | % | 0.37 | % | 0.08 | -0.06 | |||||||||||||||
* Excludes repossessed personal property of |
As of or for the Three Months Ended (in thousands) | |||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | |||||||||||||||
2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
Allowance for credit losses: | |||||||||||||||||||
Balance at beginning of period | $ | 68,270 | $ | 69,462 | $ | 67,313 | $ | 71,024 | $ | 72,249 | |||||||||
Credit loss expense (recovery) on loans | 1,248 | 404 | (2,880 | ) | 5,167 | 514 | |||||||||||||
Net loan (charge-offs) recoveries | (1,789 | ) | (1,596 | ) | 5,029 | (8,878 | ) | (1,739 | ) | ||||||||||
Balance at end of period | $ | 67,729 | $ | 68,270 | $ | 69,462 | $ | 67,313 | $ | 71,024 | |||||||||
Net loan charge-offs (recoveries) to average loans (1) | 0.12 | % | 0.10 | % | -0.33 | % | 0.60 | % | 0.12 | % | |||||||||
Allowance for credit losses to loans | 1.10 | % | 1.11 | % | 1.12 | % | 1.12 | % | 1.19 | % | |||||||||
Allowance for credit losses related to off-balance sheet items: | |||||||||||||||||||
Balance at beginning of period | $ | 2,297 | $ | 2,474 | $ | 2,463 | $ | 2,476 | $ | 3,067 | |||||||||
Credit loss expense (recovery) on off-balance sheet items | (287 | ) | (177 | ) | 11 | (13 | ) | (591 | ) | ||||||||||
Balance at end of period | $ | 2,010 | $ | 2,297 | $ | 2,474 | $ | 2,463 | $ | 2,476 | |||||||||
Unused commitments to extend credit | $ | 795,391 | $ | 792,769 | $ | 813,960 | $ | 848,886 | $ | 791,818 | |||||||||
(1) Annualized | |||||||||||||||||||
Corporate Developments
On April 25, 2024, Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2024 second quarter of
Earnings Conference Call
Hanmi Bank will host its second quarter 2024 earnings conference call today, July 23, 2024, 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 32 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.
Forward-Looking Statements
This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:
- a failure to maintain adequate levels of capital and liquidity to support our operations;
- general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;
- volatility and deterioration in the credit and equity markets;
- changes in consumer spending, borrowing and savings habits;
- availability of capital from private and government sources;
- demographic changes;
- competition for loans and deposits and failure to attract or retain loans and deposits;
- inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding;
- our ability to enter new markets successfully and capitalize on growth opportunities;
- the current or anticipated impact of military conflict, terrorism or other geopolitical events;
- the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;
- risks of natural disasters;
- legal proceedings and litigation brought against us;
- a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
- the failure to maintain current technologies;
- risks associated with Small Business Administration loans;
- failure to attract or retain key employees;
- our ability to access cost-effective funding;
- changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
- fluctuations in real estate values;
- changes in accounting policies and practices;
- changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
- the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests;
- strategic transactions we may enter into;
- the adequacy of and changes in the methodology for computing our allowance for credit losses;
- our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses;
- changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements;
- our ability to control expenses; and
- cyber security and fraud risks against our information technology and those of our third-party providers and vendors.
In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.
Investor Contacts:
Romolo (Ron) Santarosa
Senior Executive Vice President & Chief Financial Officer
213-427-5636
Lisa Fortuna
Investor Relations
Financial Profiles, Inc.
lfortuna@finprofiles.com
310-622-8251
Hanmi Financial Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)
June 30, | March 31, | Percentage | June 30, | Percentage | |||||||||||||
2024 | 2024 | Change | 2023 | Change | |||||||||||||
Assets | |||||||||||||||||
Cash and due from banks | $ | 313,079 | $ | 256,038 | 22.3 | % | $ | 344,907 | -9.2 | % | |||||||
Securities available for sale, at fair value | 877,638 | 872,190 | 0.6 | % | 836,650 | 4.9 | % | ||||||||||
Loans held for sale, at the lower of cost or fair value | 10,467 | 3,999 | 161.7 | % | 7,293 | 43.5 | % | ||||||||||
Loans receivable, net of allowance for credit losses | 6,108,630 | 6,109,570 | 0.0 | % | 5,894,147 | 3.6 | % | ||||||||||
Accrued interest receivable | 23,958 | 23,032 | 4.0 | % | 18,163 | 31.9 | % | ||||||||||
Premises and equipment, net | 21,955 | 21,952 | 0.0 | % | 22,849 | -3.9 | % | ||||||||||
Customers' liability on acceptances | 551 | 161 | 242.2 | % | 1,688 | -67.4 | % | ||||||||||
Servicing assets | 6,836 | 6,890 | -0.8 | % | 7,352 | -7.0 | % | ||||||||||
Goodwill and other intangible assets, net | 11,048 | 11,074 | -0.2 | % | 11,162 | -1.0 | % | ||||||||||
Federal Home Loan Bank ("FHLB") stock, at cost | 16,385 | 16,385 | 0.0 | % | 16,385 | 0.0 | % | ||||||||||
Bank-owned life insurance | 56,534 | 56,639 | -0.2 | % | 56,085 | 0.8 | % | ||||||||||
Prepaid expenses and other assets | 139,266 | 134,116 | 3.8 | % | 128,243 | 8.6 | % | ||||||||||
Total assets | $ | 7,586,347 | $ | 7,512,046 | 1.0 | % | $ | 7,344,924 | 3.3 | % | |||||||
Liabilities and Stockholders' Equity | |||||||||||||||||
Liabilities: | |||||||||||||||||
Deposits: | |||||||||||||||||
Noninterest-bearing | $ | 1,959,963 | $ | 1,933,060 | 1.4 | % | $ | 2,206,078 | -11.2 | % | |||||||
Interest-bearing | 4,369,377 | 4,443,000 | -1.7 | % | 4,109,690 | 6.3 | % | ||||||||||
Total deposits | 6,329,340 | 6,376,060 | -0.7 | % | 6,315,768 | 0.2 | % | ||||||||||
Accrued interest payable | 47,699 | 38,007 | 25.5 | % | 34,621 | 37.8 | % | ||||||||||
Bank's liability on acceptances | 551 | 161 | 242.2 | % | 1,688 | -67.4 | % | ||||||||||
Borrowings | 292,500 | 172,500 | 69.6 | % | 125,000 | 134.0 | % | ||||||||||
Subordinated debentures | 130,318 | 130,165 | 0.1 | % | 129,708 | 0.5 | % | ||||||||||
Accrued expenses and other liabilities | 78,880 | 92,053 | -14.3 | % | 69,579 | 13.4 | % | ||||||||||
Total liabilities | 6,879,288 | 6,808,946 | 1.0 | % | 6,676,364 | 3.0 | % | ||||||||||
Stockholders' equity: | |||||||||||||||||
Common stock | 34 | 34 | 0.0 | % | 33 | 3.0 | % | ||||||||||
Additional paid-in capital | 588,647 | 587,687 | 0.2 | % | 585,391 | 0.6 | % | ||||||||||
Accumulated other comprehensive income | (78,000 | ) | (76,890 | ) | -1.4 | % | (84,639 | ) | 7.8 | % | |||||||
Retained earnings | 333,392 | 326,526 | 2.1 | % | 296,901 | 12.3 | % | ||||||||||
Less treasury stock | (137,014 | ) | (134,257 | ) | -2.1 | % | (129,126 | ) | -6.1 | % | |||||||
Total stockholders' equity | 707,059 | 703,100 | 0.6 | % | 668,560 | 5.8 | % | ||||||||||
Total liabilities and stockholders' equity | $ | 7,586,347 | $ | 7,512,046 | 1.0 | % | $ | 7,344,924 | 3.3 | % |
Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except share and per share data)
Three Months Ended | |||||||||||||||||
June 30, | March 31, | Percentage | June 30, | Percentage | |||||||||||||
2024 | 2024 | Change | 2023 | Change | |||||||||||||
Interest and dividend income: | |||||||||||||||||
Interest and fees on loans receivable | $ | 90,752 | $ | 91,674 | -1.0 | % | $ | 83,567 | 8.6 | % | |||||||
Interest on securities | 5,238 | 4,955 | 5.7 | % | 4,126 | 27.0 | % | ||||||||||
Dividends on FHLB stock | 357 | 361 | -1.1 | % | 283 | 26.1 | % | ||||||||||
Interest on deposits in other banks | 2,313 | 2,604 | -11.2 | % | 2,794 | -17.2 | % | ||||||||||
Total interest and dividend income | 98,660 | 99,594 | -0.9 | % | 90,770 | 8.7 | % | ||||||||||
Interest expense: | |||||||||||||||||
Interest on deposits | 46,495 | 45,638 | 1.9 | % | 32,115 | 44.8 | % | ||||||||||
Interest on borrowings | 1,896 | 1,655 | 14.6 | % | 1,633 | 16.1 | % | ||||||||||
Interest on subordinated debentures | 1,649 | 1,646 | 0.2 | % | 1,600 | 3.1 | % | ||||||||||
Total interest expense | 50,040 | 48,939 | 2.2 | % | 35,348 | 41.6 | % | ||||||||||
Net interest income before credit loss expense | 48,620 | 50,655 | -4.0 | % | 55,422 | -12.3 | % | ||||||||||
Credit loss expense (recovery) | 961 | 227 | 323.3 | % | (77 | ) | -1348.1 | % | |||||||||
Net interest income after credit loss expense | 47,659 | 50,428 | -5.5 | % | 55,499 | -14.1 | % | ||||||||||
Noninterest income: | |||||||||||||||||
Service charges on deposit accounts | 2,429 | 2,450 | -0.9 | % | 2,571 | -5.5 | % | ||||||||||
Trade finance and other service charges and fees | 1,277 | 1,414 | -9.7 | % | 1,173 | 8.9 | % | ||||||||||
Gain on sale of Small Business Administration ("SBA") loans | 1,644 | 1,482 | 10.9 | % | 1,212 | 35.6 | % | ||||||||||
Other operating income | 2,707 | 2,387 | 13.4 | % | 2,979 | -9.1 | % | ||||||||||
Total noninterest income | 8,057 | 7,733 | 4.2 | % | 7,935 | 1.5 | % | ||||||||||
Noninterest expense: | |||||||||||||||||
Salaries and employee benefits | 20,434 | 21,585 | -5.3 | % | 20,365 | 0.3 | % | ||||||||||
Occupancy and equipment | 4,607 | 4,537 | 1.5 | % | 4,500 | 2.4 | % | ||||||||||
Data processing | 3,686 | 3,551 | 3.8 | % | 3,465 | 6.4 | % | ||||||||||
Professional fees | 1,749 | 1,893 | -7.6 | % | 1,376 | 27.1 | % | ||||||||||
Supplies and communications | 570 | 601 | -5.2 | % | 638 | -10.7 | % | ||||||||||
Advertising and promotion | 669 | 907 | -26.2 | % | 748 | -10.6 | % | ||||||||||
Other operating expenses | 3,561 | 3,371 | 5.6 | % | 3,188 | 11.7 | % | ||||||||||
Total noninterest expense | 35,276 | 36,445 | -3.2 | % | 34,280 | 2.9 | % | ||||||||||
Income before tax | 20,440 | 21,716 | -5.9 | % | 29,154 | -29.9 | % | ||||||||||
Income tax expense | 5,989 | 6,552 | -8.6 | % | 8,534 | -29.8 | % | ||||||||||
Net income | $ | 14,451 | $ | 15,164 | -4.7 | % | $ | 20,620 | -29.9 | % | |||||||
Basic earnings per share: | $ | 0.48 | $ | 0.50 | $ | 0.68 | |||||||||||
Diluted earnings per share: | $ | 0.48 | $ | 0.50 | $ | 0.67 | |||||||||||
Weighted-average shares outstanding: | |||||||||||||||||
Basic | 30,055,913 | 30,119,646 | 30,324,264 | ||||||||||||||
Diluted | 30,133,646 | 30,119,646 | 30,387,041 | ||||||||||||||
Common shares outstanding | 30,272,110 | 30,276,358 | 30,485,788 |
Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except share and per share data)
Six Months Ended | |||||||||||
June 30, | June 30, | Percentage | |||||||||
2024 | 2023 | Change | |||||||||
Interest and dividend income: | |||||||||||
Interest and fees on loans receivable | $ | 182,427 | $ | 164,490 | 10.9 | % | |||||
Interest on securities | 10,193 | 8,152 | 25.0 | % | |||||||
Dividends on FHLB stock | 719 | 572 | 25.7 | % | |||||||
Interest on deposits in other banks | 4,914 | 4,859 | 1.1 | % | |||||||
Total interest and dividend income | 198,253 | 178,073 | 11.3 | % | |||||||
Interest expense: | |||||||||||
Interest on deposits | 92,133 | 57,613 | 59.9 | % | |||||||
Interest on borrowings | 3,551 | 4,002 | -11.3 | % | |||||||
Interest on subordinated debentures | 3,295 | 3,182 | 3.6 | % | |||||||
Total interest expense | 98,979 | 64,797 | 52.8 | % | |||||||
Net interest income before credit loss expense | 99,274 | 113,276 | -12.4 | % | |||||||
Credit loss expense (recovery) | 1,188 | 2,056 | 42.2 | % | |||||||
Net interest income after credit loss expense | 98,086 | 111,220 | -11.8 | % | |||||||
Noninterest income: | |||||||||||
Service charges on deposit accounts | 4,878 | 5,151 | -5.3 | % | |||||||
Trade finance and other service charges and fees | 2,691 | 2,431 | 10.7 | % | |||||||
Gain on sale of Small Business Administration ("SBA") loans | 3,126 | 3,081 | 1.5 | % | |||||||
Other operating income | 5,095 | 5,608 | -9.1 | % | |||||||
Total noninterest income | 15,790 | 16,271 | -3.0 | % | |||||||
Noninterest expense: | |||||||||||
Salaries and employee benefits | 42,019 | 40,975 | 2.5 | % | |||||||
Occupancy and equipment | 9,144 | 8,912 | 2.6 | % | |||||||
Data processing | 7,237 | 6,718 | 7.7 | % | |||||||
Professional fees | 3,642 | 2,710 | 34.4 | % | |||||||
Supplies and communications | 1,172 | 1,314 | -10.8 | % | |||||||
Advertising and promotion | 1,576 | 1,581 | -0.3 | % | |||||||
Other operating expenses | 6,930 | 4,862 | 42.5 | % | |||||||
Total noninterest expense | 71,720 | 67,072 | 6.9 | % | |||||||
Income before tax | 42,156 | 60,419 | -30.2 | % | |||||||
Income tax expense | 12,541 | 17,807 | -29.6 | % | |||||||
Net income | $ | 29,615 | $ | 42,612 | -30.5 | % | |||||
Basic earnings per share: | $ | 0.98 | $ | 1.40 | |||||||
Diluted earnings per share: | $ | 0.97 | $ | 1.39 | |||||||
Weighted-average shares outstanding: | |||||||||||
Basic | 30,089,341 | 30,320,281 | |||||||||
Diluted | 30,166,181 | 30,383,226 | |||||||||
Common shares outstanding | 30,272,110 | 30,485,788 |