Hanmi Financial Corporation (NASDAQ: HAFC, or
“Hanmi”), the parent company of Hanmi Bank (the “Bank”),
today reported financial results for the first quarter of 2023.
Net income for the first quarter of 2023 was
$22.0 million, or $0.72 per diluted share, compared with $28.5
million, or $0.93 per diluted share, for the fourth quarter of
2022. The decline primarily reflects lower net interest income and
higher credit loss expense. Return on average assets and return on
average equity for the first quarter of 2023 were 1.21% and 12.19%,
respectively.
CEO Commentary
“Our team delivered excellent first quarter
results with a 2% annualized growth in deposits since year-end, a
6% growth in net income since the year ago quarter and, all the
while, maintaining high levels of liquidity and exercising
disciplined expense management,” said Bonnie Lee, President and
Chief Executive Officer of Hanmi. “The new relationships we
developed during the quarter led to the growth in deposits,
reflecting the strength of our relationship banking strategy.”
“As anticipated, loan production moderated from
last year due in part to the high interest rate environment and
uncertain macroeconomic conditions. Additionally, we are taking a
more selective and prudent approach with our lending as maintaining
strong asset quality remains paramount. The industry events in
March presented another opportunity for us to partner with our
customers as we proactively stepped up communications to offer
support in this turbulent environment.”
“Our balance sheet is strong, with ample
liquidity, solid credit quality and excellent capital ratios. I am
grateful to our team of highly skilled bankers who work tirelessly
to build trusted banking relationships with our customers and who
continue to deliver strong results to our shareholders.”
First Quarter 2023 Highlights:
- First quarter net income was $22.0
million, or $0.72 per diluted share, down 22.8% from $28.5 million,
or $0.93 per diluted share for the fourth quarter of 2022 and
reflects lower net interest income, a larger credit loss expense,
and a higher effective tax rate, offset by lower noninterest
expenses and higher noninterest income.
- Loans receivable were $5.98 billion
at March 31, 2023, up 0.9% (annualized) from year-end 2022; first
quarter loan production was $303.6 million with a weighted average
interest rate of 7.19%.
- Deposits increased 2.1%
(annualized) from year-end 2022 to $6.20 billion at March 31, 2023;
noninterest-bearing demand deposits were 37.6% of the deposit
portfolio at March 31, 2023.
- Net interest income for the first
quarter was $57.9 million, down 10.4% from the fourth quarter,
primarily due to higher deposit interest expense.
- Net interest margin (taxable
equivalent) was 3.28% for the first quarter, down 39 basis points
from the prior quarter; sequentially, the average yield on loans
increased 30 basis points while the cost of interest-bearing
deposits increased 103 basis points.
- Noninterest income for the first quarter was $8.3 million, up
11.8% from the fourth quarter, and noninterest expense was $32.8
million, down 3.1% from the fourth quarter of 2022; the efficiency
ratio for the first quarter was 49.54%.
- Credit loss expense for the first
quarter was $2.1 million; the ratio of the allowance for credit
losses to loans increased to 1.21% at the end of the first quarter
from 1.20% at year-end 2022.
- Criticized loans declined 10.9%
from the fourth quarter of 2022, and stood at 1.9% of loans at
quarter-end; nonperforming assets were $20.2 million, or 0.27% of
total assets at the end of the first quarter, compared with 0.14%
at year-end 2022.
- Hanmi’s ratio of tangible common
equity to tangible assets was 8.77% at March 31, 2023 and it had a
preliminary Common equity Tier 1 capital ratio of 11.59% and a
Total capital ratio of 14.80%.
For more information about Hanmi, please see the
Q1 2023 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 |
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(Dollars in
thousands, except per share data) |
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As of or for the Three Months Ended |
|
Amount Change |
|
March
31, |
|
December
31, |
|
September
30, |
|
June
30, |
|
March
31, |
|
Q1-23 |
|
Q1-23 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
vs. Q4-22 |
|
vs. Q1-22 |
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Net income |
$ |
21,991 |
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$ |
28,479 |
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$ |
27,169 |
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$ |
25,050 |
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$ |
20,695 |
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$ |
(6,488 |
) |
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$ |
1,296 |
Net income
per diluted common share |
$ |
0.72 |
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$ |
0.93 |
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$ |
0.89 |
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$ |
0.82 |
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$ |
0.68 |
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$ |
(0.21 |
) |
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$ |
0.04 |
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Assets |
$ |
7,434,130 |
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$ |
7,378,262 |
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$ |
7,128,511 |
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$ |
6,955,968 |
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$ |
6,737,052 |
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$ |
55,868 |
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|
$ |
697,078 |
Loans
receivable |
$ |
5,980,458 |
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|
$ |
5,967,133 |
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|
$ |
5,800,991 |
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$ |
5,655,403 |
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$ |
5,337,500 |
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$ |
13,325 |
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|
$ |
642,958 |
Deposits |
$ |
6,201,038 |
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$ |
6,168,072 |
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$ |
6,201,376 |
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$ |
5,979,390 |
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$ |
5,783,170 |
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$ |
32,966 |
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$ |
417,868 |
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Return on
average assets |
|
1.21 |
% |
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|
1.56 |
% |
|
|
1.52 |
% |
|
|
1.45 |
% |
|
|
1.22 |
% |
|
|
-0.35 |
|
|
|
-0.01 |
Return on
average stockholders' equity |
|
12.19 |
% |
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|
15.90 |
% |
|
|
15.58 |
% |
|
|
14.92 |
% |
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|
12.74 |
% |
|
|
-3.71 |
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|
-0.55 |
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Net interest
margin |
|
3.28 |
% |
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|
3.67 |
% |
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|
3.66 |
% |
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|
3.55 |
% |
|
|
3.10 |
% |
|
|
-0.39 |
|
|
|
0.18 |
Efficiency
ratio(1) |
|
49.54 |
% |
|
|
46.99 |
% |
|
|
46.22 |
% |
|
|
46.05 |
% |
|
|
53.29 |
% |
|
|
2.55 |
|
|
|
-3.75 |
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Tangible
common equity to tangible assets(2) |
|
8.77 |
% |
|
|
8.50 |
% |
|
|
8.40 |
% |
|
|
8.74 |
% |
|
|
9.07 |
% |
|
|
0.27 |
|
|
|
-0.30 |
Tangible
common equity per common share(2) |
$ |
21.30 |
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|
$ |
20.54 |
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|
$ |
19.60 |
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|
$ |
19.91 |
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|
$ |
20.02 |
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|
0.76 |
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|
1.28 |
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(1) Noninterest expense divided by net interest income plus
noninterest income. |
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(2) Refer to "Non-GAAP Financial Measures" for further
details. |
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Results of Operations Net
interest income for the first quarter decreased $6.7 million to
$57.9 million from $64.6 million for the fourth quarter of 2022,
down 10.4%. The decrease was primarily due to an increase in the
cost of interest-bearing deposits, partially offset by an increase
in interest-earning asset yields. Average loans were $5.94 billion
for the first quarter, compared with $5.88 billion for the fourth
quarter of 2022. The yield on average loans for the first quarter
increased 30 basis points to 5.51% from 5.21% for the fourth
quarter. The cost of interest-bearing deposits increased 103 basis
points to 2.73% from 1.70% for the fourth quarter of 2022. Average
interest-bearing deposits were $3.79 billion for the first quarter,
compared to $3.49 billion for the fourth quarter. First quarter
loan prepayment fees were $0.4 million compared with $0.1 million
for the fourth quarter. Net interest margin (taxable-equivalent)
for the first quarter was 3.28% compared with 3.67% for the fourth
quarter of 2022.
|
As of or For the Three Months
Ended (in thousands) |
|
Percentage Change |
|
Mar
31, |
|
Dec
31, |
|
Sep
30, |
|
Jun
30, |
|
Mar
31, |
|
Q1-23 |
|
Q1-23 |
Net
Interest Income |
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
vs. Q4-22 |
|
vs. Q1-22 |
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Interest and fees on loans receivable(1) |
$ |
80,923 |
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$ |
77,123 |
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$ |
66,976 |
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$ |
59,855 |
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$ |
53,924 |
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|
4.9 |
% |
|
50.1 |
% |
Interest on
securities |
|
4,025 |
|
|
|
3,633 |
|
|
|
3,271 |
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|
2,930 |
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|
2,516 |
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|
10.8 |
% |
|
60.0 |
% |
Dividends on
FHLB stock |
|
289 |
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|
289 |
|
|
|
245 |
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|
242 |
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|
248 |
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|
0.0 |
% |
|
16.5 |
% |
Interest on
deposits in other banks |
|
2,066 |
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|
1,194 |
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|
958 |
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|
193 |
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|
216 |
|
|
73.0 |
% |
|
856.5 |
% |
Total interest and dividend income |
$ |
87,303 |
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|
$ |
82,239 |
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|
$ |
71,450 |
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|
$ |
63,220 |
|
|
$ |
56,904 |
|
|
6.2 |
% |
|
53.4 |
% |
|
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Interest on
deposits |
|
25,498 |
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|
|
14,900 |
|
|
|
6,567 |
|
|
|
2,457 |
|
|
|
2,013 |
|
|
71.1 |
% |
|
1166.7 |
% |
Interest on
borrowings |
|
2,369 |
|
|
|
1,192 |
|
|
|
349 |
|
|
|
370 |
|
|
|
337 |
|
|
98.7 |
% |
|
603.0 |
% |
Interest on
subordinated debentures |
|
1,583 |
|
|
|
1,586 |
|
|
|
1,448 |
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|
|
1,349 |
|
|
|
3,598 |
|
|
-0.2 |
% |
|
-56.0 |
% |
Total interest expense |
|
29,450 |
|
|
|
17,678 |
|
|
|
8,364 |
|
|
|
4,176 |
|
|
|
5,948 |
|
|
66.6 |
% |
|
395.1 |
% |
Net interest
income |
$ |
57,853 |
|
|
$ |
64,561 |
|
|
$ |
63,086 |
|
|
$ |
59,044 |
|
|
$ |
50,956 |
|
|
-10.4 |
% |
|
13.5 |
% |
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(1) Includes loans held for sale. |
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For the Three Months Ended (in
thousands) |
|
Percentage Change |
|
Mar
31, |
|
Dec
31, |
|
Sep
30, |
|
Jun
30, |
|
Mar
31, |
|
Q1-23 |
|
Q1-23 |
Average Earning Assets and Interest-bearing
Liabilities |
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
vs. Q4-22 |
|
vs. Q1-22 |
Loans
receivable(1) |
$ |
5,944,399 |
|
|
$ |
5,877,298 |
|
|
$ |
5,696,587 |
|
|
$ |
5,572,504 |
|
|
$ |
5,231,672 |
|
|
1.1 |
% |
|
13.6 |
% |
Securities(2) |
|
980,712 |
|
|
|
966,299 |
|
|
|
956,989 |
|
|
|
945,291 |
|
|
|
930,505 |
|
|
1.5 |
% |
|
5.4 |
% |
FHLB
stock |
|
16,385 |
|
|
|
16,385 |
|
|
|
16,385 |
|
|
|
16,385 |
|
|
|
16,385 |
|
|
0.0 |
% |
|
0.0 |
% |
Interest-bearing deposits in other banks |
|
192,902 |
|
|
|
138,476 |
|
|
|
181,401 |
|
|
|
136,473 |
|
|
|
494,887 |
|
|
39.3 |
% |
|
-61.0 |
% |
Average interest-earning assets |
$ |
7,134,398 |
|
|
$ |
6,998,458 |
|
|
$ |
6,851,362 |
|
|
$ |
6,670,653 |
|
|
$ |
6,673,449 |
|
|
1.9 |
% |
|
6.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand:
interest-bearing |
$ |
109,391 |
|
|
$ |
119,106 |
|
|
$ |
121,269 |
|
|
$ |
122,771 |
|
|
$ |
124,892 |
|
|
-8.2 |
% |
|
-12.4 |
% |
Money market
and savings |
|
1,453,569 |
|
|
|
1,781,834 |
|
|
|
2,079,490 |
|
|
|
2,139,488 |
|
|
|
2,106,008 |
|
|
-18.4 |
% |
|
-31.0 |
% |
Time
deposits |
|
2,223,615 |
|
|
|
1,585,798 |
|
|
|
1,120,149 |
|
|
|
894,345 |
|
|
|
937,044 |
|
|
40.2 |
% |
|
137.3 |
% |
Average interest-bearing deposits |
|
3,786,575 |
|
|
|
3,486,738 |
|
|
|
3,320,908 |
|
|
|
3,156,604 |
|
|
|
3,167,944 |
|
|
8.6 |
% |
|
19.5 |
% |
Borrowings |
|
268,056 |
|
|
|
197,554 |
|
|
|
123,370 |
|
|
|
140,245 |
|
|
|
130,556 |
|
|
35.7 |
% |
|
105.3 |
% |
Subordinated
debentures |
|
129,483 |
|
|
|
129,335 |
|
|
|
129,176 |
|
|
|
129,029 |
|
|
|
213,171 |
|
|
0.1 |
% |
|
-39.3 |
% |
Average interest-bearing liabilities |
$ |
4,184,114 |
|
|
$ |
3,813,627 |
|
|
$ |
3,573,454 |
|
|
$ |
3,425,878 |
|
|
$ |
3,511,671 |
|
|
9.7 |
% |
|
19.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Noninterest Bearing Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits - noninterest bearing |
$ |
2,324,413 |
|
|
$ |
2,593,948 |
|
|
$ |
2,717,810 |
|
|
$ |
2,716,297 |
|
|
$ |
2,634,398 |
|
|
-10.4 |
% |
|
-11.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes loans held for sale. |
|
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|
|
|
|
|
|
|
|
|
|
|
(2) Amounts
calculated on a fully taxable equivalent basis using the federal
tax rate in effect for the periods presented. |
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|
|
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|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
Yield/Rate Change |
|
Mar
31, |
|
Dec
31, |
|
Sep
30, |
|
Jun
30, |
|
Mar
31, |
|
Q1-23 |
|
Q1-23 |
Average Yields and Rates |
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
vs. Q4-22 |
|
vs. Q1-22 |
Loans
receivable(1) |
|
5.51 |
% |
|
|
5.21 |
% |
|
|
4.67 |
% |
|
|
4.31 |
% |
|
|
4.18 |
% |
|
0.30 |
|
|
1.33 |
|
Securities(2) |
|
1.67 |
% |
|
|
1.47 |
% |
|
|
1.40 |
% |
|
|
1.27 |
% |
|
|
1.11 |
% |
|
0.20 |
|
|
0.56 |
|
FHLB
stock |
|
7.16 |
% |
|
|
7.00 |
% |
|
|
5.93 |
% |
|
|
5.93 |
% |
|
|
6.14 |
% |
|
0.16 |
|
|
1.02 |
|
Interest-bearing deposits in other banks |
|
4.34 |
% |
|
|
3.42 |
% |
|
|
2.09 |
% |
|
|
0.57 |
% |
|
|
0.18 |
% |
|
0.92 |
|
|
4.16 |
|
Interest-earning assets |
|
4.96 |
% |
|
|
4.67 |
% |
|
|
4.15 |
% |
|
|
3.80 |
% |
|
|
3.46 |
% |
|
0.29 |
|
|
1.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
2.73 |
% |
|
|
1.70 |
% |
|
|
0.78 |
% |
|
|
0.31 |
% |
|
|
0.26 |
% |
|
1.03 |
|
|
2.47 |
|
Borrowings |
|
3.58 |
% |
|
|
2.55 |
% |
|
|
1.24 |
% |
|
|
1.10 |
% |
|
|
1.05 |
% |
|
1.03 |
|
|
2.53 |
|
Subordinated
debentures |
|
4.89 |
% |
|
|
4.67 |
% |
|
|
4.37 |
% |
|
|
4.14 |
% |
|
|
6.75 |
% |
|
0.22 |
|
|
-1.86 |
|
Interest-bearing liabilities |
|
2.85 |
% |
|
|
1.84 |
% |
|
|
0.93 |
% |
|
|
0.49 |
% |
|
|
0.69 |
% |
|
1.01 |
|
|
2.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (taxable equivalent basis) |
|
3.28 |
% |
|
|
3.67 |
% |
|
|
3.66 |
% |
|
|
3.55 |
% |
|
|
3.10 |
% |
|
-0.39 |
|
|
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
deposits |
|
1.69 |
% |
|
|
0.97 |
% |
|
|
0.43 |
% |
|
|
0.17 |
% |
|
|
0.14 |
% |
|
0.72 |
|
|
1.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 first quarter was
$2.1 million and included a $2.2 million provision for loan losses
and a $0.1 million recovery for off-balance sheet items. For the
fourth quarter of 2022, credit loss expense was $0.1 million and
included a $0.2 million provision for loan losses and a $0.1
million provision for off-balance sheet items. The fourth quarter
also included a recovery of an SBA guarantee repair loss allowance
of less than $0.1 million.
Noninterest income for the first quarter
increased $0.8 million to $8.3 million from $7.5 million for the
fourth quarter of 2022. The increase reflected the absence of the
fourth quarter $0.3 million valuation adjustment to bank-owned life
insurance and a $0.9 million increase in all other operating
income. All other operating income increased, primarily from $0.6
million of loan customer interest rate swap fee income. The volume
of SBA loans sold in the first quarter declined to $29.7 million
from $40.9 million for the fourth quarter of 2022 due to the higher
interest rate environment while trade premiums increased to 7.85%
for the first quarter from 5.99% for the fourth quarter.
|
For the Three Months Ended (in thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-23 |
|
Q1-23 |
Noninterest
Income |
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
vs. Q4-22 |
|
vs. Q1-22 |
Service charges on deposit accounts |
$ |
2,579 |
|
$ |
2,742 |
|
|
$ |
2,996 |
|
$ |
2,875 |
|
$ |
2,875 |
|
-5.9 |
% |
|
-10.3 |
% |
Trade finance and other
service charges and fees |
|
1,258 |
|
|
1,115 |
|
|
|
1,132 |
|
|
1,416 |
|
|
1,142 |
|
12.8 |
% |
|
10.2 |
% |
Servicing income |
|
742 |
|
|
725 |
|
|
|
635 |
|
|
663 |
|
|
734 |
|
2.3 |
% |
|
1.1 |
% |
Bank-owned life insurance
income (expense) |
|
270 |
|
|
(97 |
) |
|
|
245 |
|
|
246 |
|
|
244 |
|
378.4 |
% |
|
10.7 |
% |
All other operating
income |
|
1,618 |
|
|
1,039 |
|
|
|
1,656 |
|
|
1,336 |
|
|
1,004 |
|
55.7 |
% |
|
61.2 |
% |
Service charges, fees & other |
|
6,467 |
|
|
5,524 |
|
|
|
6,664 |
|
|
6,536 |
|
|
5,999 |
|
17.1 |
% |
|
7.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of SBA loans |
|
1,869 |
|
|
1,933 |
|
|
|
2,250 |
|
|
2,774 |
|
|
2,521 |
|
-3.3 |
% |
|
-25.9 |
% |
Total noninterest income |
$ |
8,336 |
|
$ |
7,457 |
|
|
$ |
8,914 |
|
$ |
9,310 |
|
$ |
8,520 |
|
11.8 |
% |
|
-2.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense for the first quarter
declined $1.0 million to $32.8 million from $33.8 million for the
fourth quarter of 2022. The decrease reflected $0.4 million in
lower professional fees and a $1.1 million decrease in other
operating expenses, driven by a recovery of the fourth quarter 2022
servicing valuation adjustment. Additionally, expenses on real
estate owned and repossessed personal property decreased $0.3
million during the first quarter. These decreases were partially
offset by a $0.3 million increase in salaries and benefits and a
$0.7 million increase in occupancy and equipment expenses, mostly
due to normalization of property tax expenses in the absence of
prior quarter adjustments. The efficiency ratio for the first
quarter increased to 49.54%, from 46.99% for the prior quarter due
to the lower revenue.
|
For the Three Months Ended (in thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-23 |
|
Q1-23 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
vs. Q4-22 |
|
vs. Q1-22 |
Noninterest
Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
$ |
20,610 |
|
|
$ |
20,279 |
|
|
$ |
19,365 |
|
|
$ |
18,779 |
|
$ |
17,717 |
|
|
1.6 |
% |
|
16.3 |
% |
Occupancy and equipment |
|
4,412 |
|
|
|
3,668 |
|
|
|
4,736 |
|
|
|
4,597 |
|
|
4,646 |
|
|
20.3 |
% |
|
-5.0 |
% |
Data processing |
|
3,253 |
|
|
|
3,431 |
|
|
|
3,352 |
|
|
|
3,114 |
|
|
3,236 |
|
|
-5.2 |
% |
|
0.5 |
% |
Professional fees |
|
1,335 |
|
|
|
1,783 |
|
|
|
1,249 |
|
|
|
1,231 |
|
|
1,430 |
|
|
-25.1 |
% |
|
-6.6 |
% |
Supplies and
communication |
|
676 |
|
|
|
683 |
|
|
|
710 |
|
|
|
581 |
|
|
665 |
|
|
-1.0 |
% |
|
1.7 |
% |
Advertising and promotion |
|
833 |
|
|
|
974 |
|
|
|
1,186 |
|
|
|
660 |
|
|
817 |
|
|
-14.5 |
% |
|
2.0 |
% |
All other operating
expenses |
|
1,957 |
|
|
|
3,041 |
|
|
|
2,698 |
|
|
|
2,463 |
|
|
3,186 |
|
|
-35.6 |
% |
|
-38.6 |
% |
Subtotal |
|
33,076 |
|
|
|
33,859 |
|
|
|
33,296 |
|
|
|
31,425 |
|
|
31,697 |
|
|
-2.3 |
% |
|
4.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate owned
expense (income) |
|
(201 |
) |
|
|
(70 |
) |
|
|
2 |
|
|
|
50 |
|
|
12 |
|
|
187.1 |
% |
|
-1775.0 |
% |
Repossessed personal property
expense (income) |
|
(84 |
) |
|
|
55 |
|
|
|
(23 |
) |
|
|
- |
|
|
(17 |
) |
|
-165.5 |
% |
|
394.1 |
% |
Total noninterest expense |
$ |
32,791 |
|
|
$ |
33,844 |
|
|
$ |
33,275 |
|
|
$ |
31,475 |
|
$ |
31,692 |
|
|
-3.1 |
% |
|
3.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi recorded a provision for income taxes of
$9.3 million for the first quarter, compared with $9.6 million in
the fourth quarter of 2022 and representing an effective tax rate
of 29.7%, compared with 25.3% for the fourth quarter. The increase
in the first quarter effective tax rate primarily reflects the
absence of a state tax valuation reserve released during the fourth
quarter of 2022.
Financial PositionTotal assets
at March 31, 2023 increased 0.8%, or $55.9 million, to $7.43
billion from $7.38 billion at December 31, 2022. The increase
reflected a $12.6 million increase in loans receivable, a $33.8
million increase in cash and due from banks, and a $24.9 million
increase in securities available for sale.
Loans receivable, before the allowance for
credit losses, were $5.98 billion at quarter-end, up slightly from
December 31, 2022. Loans held for sale, representing the guaranteed
portion of SBA 7(a) loans, were $3.7 million at the end of the
first quarter, compared with $8.0 million at the end of the prior
quarter.
|
As of (in thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-23 |
|
Q1-23 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
vs. Q4-22 |
|
vs. Q1-22 |
Loan
Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans |
$ |
3,784,178 |
|
|
$ |
3,833,397 |
|
|
$ |
3,853,947 |
|
|
$ |
3,829,656 |
|
|
$ |
3,771,453 |
|
|
-1.3 |
% |
|
0.3 |
% |
Residential/consumer
loans |
|
817,919 |
|
|
|
734,473 |
|
|
|
649,591 |
|
|
|
521,576 |
|
|
|
432,805 |
|
|
11.4 |
% |
|
89.0 |
% |
Commercial and industrial
loans |
|
778,145 |
|
|
|
804,475 |
|
|
|
732,030 |
|
|
|
766,813 |
|
|
|
633,107 |
|
|
-3.3 |
% |
|
22.9 |
% |
Leases |
|
600,216 |
|
|
|
594,788 |
|
|
|
565,423 |
|
|
|
537,358 |
|
|
|
500,135 |
|
|
0.9 |
% |
|
20.0 |
% |
Loans receivable |
|
5,980,458 |
|
|
|
5,967,133 |
|
|
|
5,800,991 |
|
|
|
5,655,403 |
|
|
|
5,337,500 |
|
|
0.2 |
% |
|
12.0 |
% |
Loans held for sale |
|
3,652 |
|
|
|
8,043 |
|
|
|
10,044 |
|
|
|
18,528 |
|
|
|
15,617 |
|
|
-54.6 |
% |
|
-76.6 |
% |
Total |
$ |
5,984,110 |
|
|
$ |
5,975,176 |
|
|
$ |
5,811,035 |
|
|
$ |
5,673,931 |
|
|
$ |
5,353,117 |
|
|
0.1 |
% |
|
11.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
|
|
|
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
|
|
|
Composition of Loan
Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans |
|
63.2 |
% |
|
|
64.2 |
% |
|
|
66.3 |
% |
|
|
67.5 |
% |
|
|
70.5 |
% |
|
|
|
|
Residential/consumer
loans |
|
13.7 |
% |
|
|
12.3 |
% |
|
|
11.2 |
% |
|
|
9.2 |
% |
|
|
8.1 |
% |
|
|
|
|
Commercial and industrial
loans |
|
13.0 |
% |
|
|
13.5 |
% |
|
|
12.6 |
% |
|
|
13.5 |
% |
|
|
11.8 |
% |
|
|
|
|
Leases |
|
10.0 |
% |
|
|
9.9 |
% |
|
|
9.7 |
% |
|
|
9.5 |
% |
|
|
9.3 |
% |
|
|
|
|
Loans receivable |
|
99.9 |
% |
|
|
99.9 |
% |
|
|
99.8 |
% |
|
|
99.7 |
% |
|
|
99.7 |
% |
|
|
|
|
Loans held for sale |
|
0.1 |
% |
|
|
0.1 |
% |
|
|
0.2 |
% |
|
|
0.3 |
% |
|
|
0.3 |
% |
|
|
|
|
Total |
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New loan production was $303.6 million for the
first quarter, at an average rate of 7.19% while $124.9 million of
loans paid off during the quarter at an average rate of 7.27%.
Commercial real estate loan production for the
first quarter was $75.5 million. Commercial and industrial loan
production was $27.1 million, SBA loan production was $34.5
million, equipment finance production was $69.3 million and
residential mortgage loan production was $97.2 million.
|
For the Three Months Ended (in thousands) |
|
Mar
31, |
|
Dec
31, |
|
Sep
30, |
|
Jun
30, |
|
Mar
31, |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
New
Loan Production |
|
|
|
|
|
|
|
|
|
Commercial real estate loans |
$ |
75,528 |
|
|
$ |
86,500 |
|
|
$ |
132,870 |
|
|
$ |
271,006 |
|
|
$ |
233,295 |
|
Commercial
and industrial loans |
|
27,055 |
|
|
|
137,902 |
|
|
|
88,015 |
|
|
|
96,187 |
|
|
|
98,432 |
|
SBA
loans |
|
34,472 |
|
|
|
53,209 |
|
|
|
44,898 |
|
|
|
67,900 |
|
|
|
42,632 |
|
Leases
receivable |
|
69,307 |
|
|
|
89,193 |
|
|
|
86,092 |
|
|
|
95,371 |
|
|
|
71,487 |
|
Residential/consumer loans |
|
97,201 |
|
|
|
106,955 |
|
|
|
140,432 |
|
|
|
111,766 |
|
|
|
61,023 |
|
subtotal |
|
303,563 |
|
|
|
473,759 |
|
|
|
492,307 |
|
|
|
642,230 |
|
|
|
506,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payoffs |
|
(124,923 |
) |
|
|
(121,409 |
) |
|
|
(139,883 |
) |
|
|
(230,536 |
) |
|
|
(181,026 |
) |
Amortization |
|
(102,675 |
) |
|
|
(91,333 |
) |
|
|
(80,294 |
) |
|
|
(94,543 |
) |
|
|
(96,852 |
) |
Loan
sales |
|
(30,002 |
) |
|
|
(50,550 |
) |
|
|
(45,418 |
) |
|
|
(41,937 |
) |
|
|
(29,577 |
) |
Net line
utilization |
|
(30,401 |
) |
|
|
(43,124 |
) |
|
|
(78,927 |
) |
|
|
43,295 |
|
|
|
(12,620 |
) |
Charge-offs
& OREO |
|
(2,237 |
) |
|
|
(1,201 |
) |
|
|
(2,197 |
) |
|
|
(606 |
) |
|
|
(835 |
) |
|
|
|
|
|
|
|
|
|
|
Loans
receivable-beginning balance |
|
5,967,133 |
|
|
|
5,800,991 |
|
|
|
5,655,403 |
|
|
|
5,337,500 |
|
|
|
5,151,541 |
|
Loans
receivable-ending balance |
$ |
5,980,458 |
|
|
$ |
5,967,133 |
|
|
$ |
5,800,991 |
|
|
$ |
5,655,403 |
|
|
$ |
5,337,500 |
|
|
|
|
|
|
|
|
|
|
|
Deposits were $6.20 billion at the end of the
first quarter, up $33.0 million, or 0.5%, from $6.17 billion at the
end of the prior quarter. The change was primarily driven by a
$424.0 million increase in time deposits, partially offset by a
$174.2 million decline in money market and savings deposits and a
$205.5 million decrease in noninterest-bearing demand deposits.
Noninterest-bearing demand deposits represented 37.6% of total
deposits at quarter-end and the loan-to-deposit ratio was
96.4%.
|
As of (in thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-23 |
|
Q1-23 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
vs. Q4-22 |
|
vs. Q1-22 |
Deposit
Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand: noninterest-bearing |
$ |
2,334,083 |
|
|
$ |
2,539,602 |
|
|
$ |
2,771,498 |
|
|
$ |
2,782,737 |
|
|
$ |
2,678,726 |
|
|
-8.1 |
% |
|
-12.9 |
% |
Demand: interest-bearing |
|
104,245 |
|
|
|
115,573 |
|
|
|
125,408 |
|
|
|
123,614 |
|
|
|
126,907 |
|
|
-9.8 |
% |
|
-17.9 |
% |
Money market and savings |
|
1,382,472 |
|
|
|
1,556,690 |
|
|
|
2,056,793 |
|
|
|
2,102,161 |
|
|
|
2,080,969 |
|
|
-11.2 |
% |
|
-33.6 |
% |
Time deposits |
|
2,380,238 |
|
|
|
1,956,207 |
|
|
|
1,247,677 |
|
|
|
970,878 |
|
|
|
896,568 |
|
|
21.7 |
% |
|
165.5 |
% |
Total deposits |
$ |
6,201,038 |
|
|
$ |
6,168,072 |
|
|
$ |
6,201,376 |
|
|
$ |
5,979,390 |
|
|
$ |
5,783,170 |
|
|
0.5 |
% |
|
7.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
|
|
|
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
|
|
|
Composition of Deposit
Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand:
noninterest-bearing |
|
37.6 |
% |
|
|
41.2 |
% |
|
|
44.7 |
% |
|
|
46.5 |
% |
|
|
46.3 |
% |
|
|
|
|
Demand: interest-bearing |
|
1.7 |
% |
|
|
1.9 |
% |
|
|
2.0 |
% |
|
|
2.1 |
% |
|
|
2.2 |
% |
|
|
|
|
Money market and savings |
|
22.3 |
% |
|
|
25.2 |
% |
|
|
33.2 |
% |
|
|
35.2 |
% |
|
|
36.0 |
% |
|
|
|
|
Time deposits |
|
38.4 |
% |
|
|
31.7 |
% |
|
|
20.1 |
% |
|
|
16.2 |
% |
|
|
15.5 |
% |
|
|
|
|
Total deposits |
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity at March 31, 2023 was
$662.2 million, compared with $637.5 million at December 31, 2022.
The increase was primarily due to $14.4 million of first quarter
net income net of dividends as well as a $9.9 million reduction in
unrealized after-tax loss due to changes in the value of the
securities portfolio resulting from decreases in intermediate-term
interest rates during the first quarter. Tangible common
stockholders’ equity was $651.0 million, or 8.77% of tangible
assets, at March 31, 2023, compared with $626.3 million, or 8.50%
of tangible assets at the end of the fourth quarter of 2022.
Tangible book value per share increased to $21.30 at March 31,
2023, up from $20.54 at year-end 2022. Refer to “Non-GAAP Financial
measures” for greater detail.
Hanmi and the Bank exceeded the minimum
regulatory capital requirements and the Bank continues to exceed
the minimum for the “well capitalized” category. At March 31, 2023,
Hanmi’s preliminary Common equity Tier 1 capital ratio was 11.59%
and its Total risk-based capital ratio was 14.80%, compared with
11.37% and 14.49%, respectively, at the end of the fourth quarter
of 2022.
|
As of |
|
Ratio Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-23 |
|
Q1-23 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
vs. Q4-22 |
|
vs. Q1-22 |
Regulatory Capital
ratios(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital |
14.80 |
% |
|
14.49 |
% |
|
14.38 |
% |
|
14.31 |
% |
|
14.73 |
% |
|
0.31 |
|
0.07 |
Tier 1 risk-based capital |
11.94 |
% |
|
11.71 |
% |
|
11.55 |
% |
|
11.42 |
% |
|
11.71 |
% |
|
0.23 |
|
0.23 |
Common equity tier 1 capital |
11.59 |
% |
|
11.37 |
% |
|
11.21 |
% |
|
11.07 |
% |
|
11.34 |
% |
|
0.22 |
|
0.25 |
Tier 1 leverage capital ratio |
10.09 |
% |
|
10.07 |
% |
|
9.99 |
% |
|
9.94 |
% |
|
9.70 |
% |
|
0.02 |
|
0.39 |
Hanmi Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital |
14.15 |
% |
|
13.86 |
% |
|
13.76 |
% |
|
13.70 |
% |
|
14.19 |
% |
|
0.29 |
|
-0.04 |
Tier 1 risk-based capital |
13.06 |
% |
|
12.85 |
% |
|
12.73 |
% |
|
12.64 |
% |
|
13.09 |
% |
|
0.21 |
|
-0.03 |
Common equity tier 1 capital |
13.06 |
% |
|
12.85 |
% |
|
12.73 |
% |
|
12.64 |
% |
|
13.09 |
% |
|
0.21 |
|
-0.03 |
Tier 1 leverage capital ratio |
11.06 |
% |
|
11.07 |
% |
|
11.02 |
% |
|
11.00 |
% |
|
10.84 |
% |
|
-0.01 |
|
0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Preliminary ratios for March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset QualityLoans 30 to 89
days past due and still accruing were 0.26% of loans at the end of
the first quarter, compared with 0.13% at the end of the prior
quarter. A $6.7 million past due and accruing loan at March 31,
2023, subsequent to the end of the first quarter, resolved its
delinquency.
Special mention loans were $64.3 million at the
end of the first quarter, down from $79.0 million at December 31,
2022. The $14.7 million decrease in special mention loans included
downgrades to classified loans of $10.0 million, and payoffs of
$4.6 million.
Classified loans were $47.3 million at March 31,
2023, up from $46.2 million at the end of the prior quarter. The
$1.1 million increase was primarily driven by the downgrade of one
loan in the amount of $10.0 million, offset by loan upgrades of
$8.8 million.
Nonperforming loans were $20.1 million at March
31, 2023, up from $9.8 million at the end of the prior quarter,
primarily due to a $10.0 million loan placed on nonaccrual during
the first quarter of 2023. As a percentage of the loan portfolio,
nonperforming loans were 0.34% at quarter-end, compared with 0.17%
at the end of the fourth quarter of 2022. Nonperforming loans
included a $10.0 million commercial and industrial loan in the
health-care industry secured by real estate and business assets for
which there was a specific allowance of $2.5 million.
Nonperforming assets were $20.2 million at the
end of the first quarter, up from $10.0 million at the end of the
fourth quarter of 2022. As a percentage of total assets,
nonperforming assets were 0.27% at quarter-end, compared with 0.14%
at year-end 2022.
Gross charge-offs for the first quarter were
$2.2 million, compared with $1.2 million for the fourth quarter of
2022. First quarter 2023 gross charge-offs consisted of $1.6
million of equipment financing agreements and $0.6 million of
commercial and industrial and SBA loans. Recoveries of previously
charged-off loans for the first quarter were $0.8 million, compared
with $0.9 million for the prior quarter. Recoveries during the
first quarter consisted of $0.5 million of equipment financing
agreements and $0.3 million in commercial and industrial and SBA
loans.
As a result, there were net charge-offs of $1.5
million for the first quarter, compared with net charge-offs of
$0.3 million for the prior quarter. For the first quarter, net
charge-offs represented 0.10% of average loans on an annualized
basis, compared with net charge-offs of 0.02% of average loans for
the fourth quarter of 2022 on an annualized basis.
The allowance for credit losses was $72.2
million at March 31, 2023, up from $71.5 million at December 31,
2022. The ratio of the allowance for credit losses to loans was
relatively unchanged at 1.21% at the end of the first quarter, from
1.20% at the end of the fourth quarter. Specific allowances for
loans increased $2.9 million, while the allowance for quantitative
and qualitative considerations decreased $2.2 million.
|
As of or for the Three Months Ended (in
thousands) |
|
Amount Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-23 |
|
Q1-23 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
vs. Q4-22 |
|
vs. Q1-22 |
Asset Quality Data and
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquent
loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, 30 to 89 days past due and still accruing |
$ |
15,377 |
|
|
$ |
7,492 |
|
|
$ |
4,936 |
|
|
$ |
4,174 |
|
|
$ |
5,493 |
|
|
$ |
7,885 |
|
|
$ |
9,884 |
|
Delinquent loans to total
loans |
|
0.26 |
% |
|
|
0.13 |
% |
|
|
0.09 |
% |
|
|
0.07 |
% |
|
|
0.10 |
% |
|
|
0.13 |
|
|
|
0.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Criticized
loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Special mention |
$ |
64,340 |
|
|
$ |
79,013 |
|
|
$ |
122,952 |
|
|
$ |
80,453 |
|
|
$ |
140,958 |
|
|
$ |
(14,673 |
) |
|
$ |
(76,618 |
) |
Classified |
|
47,288 |
|
|
|
46,192 |
|
|
|
47,740 |
|
|
|
53,007 |
|
|
|
57,402 |
|
|
|
1,096 |
|
|
|
(10,114 |
) |
Total criticized loans |
$ |
111,628 |
|
|
$ |
125,205 |
|
|
$ |
170,692 |
|
|
$ |
133,460 |
|
|
$ |
198,360 |
|
|
$ |
(13,577 |
) |
|
$ |
(86,732 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
20,050 |
|
|
$ |
9,846 |
|
|
$ |
11,592 |
|
|
$ |
11,044 |
|
|
$ |
11,470 |
|
|
$ |
10,204 |
|
|
$ |
8,580 |
|
Loans 90 days or more past due
and still accruing |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Nonperforming loans |
|
20,050 |
|
|
|
9,846 |
|
|
|
11,592 |
|
|
|
11,044 |
|
|
|
11,470 |
|
|
|
10,204 |
|
|
|
8,580 |
|
Other real estate owned,
net |
|
117 |
|
|
|
117 |
|
|
|
792 |
|
|
|
675 |
|
|
|
675 |
|
|
|
- |
|
|
|
(558 |
) |
Nonperforming assets |
$ |
20,167 |
|
|
$ |
9,963 |
|
|
$ |
12,384 |
|
|
$ |
11,719 |
|
|
$ |
12,145 |
|
|
$ |
10,204 |
|
|
$ |
8,022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to total
loans |
|
0.34 |
% |
|
|
0.17 |
% |
|
|
0.20 |
% |
|
|
0.20 |
% |
|
|
0.21 |
% |
|
|
|
|
Nonperforming assets to
assets |
|
0.27 |
% |
|
|
0.14 |
% |
|
|
0.17 |
% |
|
|
0.17 |
% |
|
|
0.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period |
$ |
71,523 |
|
|
$ |
71,584 |
|
|
$ |
73,067 |
|
|
$ |
71,512 |
|
|
$ |
72,557 |
|
|
|
|
|
Credit loss expense (recovery)
on loans |
|
2,181 |
|
|
|
221 |
|
|
|
(374 |
) |
|
|
1,640 |
|
|
|
(1,147 |
) |
|
|
|
|
Net loan (charge-offs)
recoveries |
|
(1,455 |
) |
|
|
(282 |
) |
|
|
(1,109 |
) |
|
|
(85 |
) |
|
|
102 |
|
|
|
|
|
Balance at end of period |
$ |
72,249 |
|
|
$ |
71,523 |
|
|
$ |
71,584 |
|
|
$ |
73,067 |
|
|
$ |
71,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs (recoveries)
to average loans(1) |
|
0.10 |
% |
|
|
0.02 |
% |
|
|
0.08 |
% |
|
|
0.01 |
% |
|
|
-0.01 |
% |
|
|
|
|
Allowance for credit losses to
loans |
|
1.21 |
% |
|
|
1.20 |
% |
|
|
1.23 |
% |
|
|
1.29 |
% |
|
|
1.34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses related to off-balance sheet items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period |
$ |
3,115 |
|
|
$ |
3,250 |
|
|
$ |
2,313 |
|
|
$ |
2,358 |
|
|
$ |
2,586 |
|
|
|
|
|
Credit loss expense (recovery)
on off-balance sheet items |
|
(48 |
) |
|
|
(135 |
) |
|
|
937 |
|
|
|
(45 |
) |
|
|
(228 |
) |
|
|
|
|
Balance at end of period |
$ |
3,067 |
|
|
$ |
3,115 |
|
|
$ |
3,250 |
|
|
$ |
2,313 |
|
|
$ |
2,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unused commitments to extend
credit |
$ |
924,371 |
|
|
$ |
780,543 |
|
|
$ |
746,354 |
|
|
$ |
613,804 |
|
|
$ |
626,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate DevelopmentsOn
January 26, 2023, Hanmi’s Board of Directors declared a cash
dividend on its common stock for the first quarter of 2023 of $0.25
per share. The dividend was paid on February 23, 2023, to
stockholders of record as of the close of business on February 6,
2023.
Earnings Conference CallHanmi
Bank will host its first quarter 2023 earnings conference call
today, April 25, 2023 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
www.hanmi.com.
About Hanmi Financial
Corporation Headquartered in Los Angeles, California,
Hanmi Financial Corporation owns Hanmi Bank, which serves
multi-ethnic communities through its network of 35 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;
- the effect of potential future
supervisory action against us or Hanmi Bank;
- the effect of our rating under the
Community Reinvestment Act and our ability to address any issues
raised in our regulatory exams;
- 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 and a decline in the level of our interest rate
spread;
- the current or anticipated impact
of military conflict, terrorism or other geopolitical events;
- 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, including 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 continuing impact of
the COVID-19 pandemic on our business and results of
operation;
- 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 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, 2022, 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
Larry Clark, CFAInvestor RelationsFinancial Profiles,
Inc.lclark@finprofiles.com 310-622-8223
Consolidated Balance Sheets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31, |
|
December
31, |
|
|
Percentage |
|
March
31, |
|
|
|
|
|
Percentage |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
Change |
|
|
2022 |
|
|
|
Change |
|
|
Change |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
386,201 |
|
|
$ |
352,421 |
|
|
$ |
33,780 |
|
9.6 |
% |
|
$ |
312,491 |
|
|
$ |
73,710 |
|
|
23.6 |
% |
Securities available for sale, at fair value |
|
878,701 |
|
|
|
853,838 |
|
|
|
24,863 |
|
2.9 |
% |
|
|
876,980 |
|
|
|
1,721 |
|
|
0.2 |
% |
Loans held for sale, at the lower of cost or fair value |
|
3,652 |
|
|
|
8,043 |
|
|
|
(4,391 |
) |
-54.6 |
% |
|
|
15,617 |
|
|
|
(11,965 |
) |
|
-76.6 |
% |
Loans receivable, net of allowance for credit losses |
|
5,908,209 |
|
|
|
5,895,610 |
|
|
|
12,599 |
|
0.2 |
% |
|
|
5,265,988 |
|
|
|
642,221 |
|
|
12.2 |
% |
Accrued interest receivable |
|
19,004 |
|
|
|
18,537 |
|
|
|
467 |
|
2.5 |
% |
|
|
12,289 |
|
|
|
6,715 |
|
|
54.6 |
% |
Premises and equipment, net |
|
22,625 |
|
|
|
22,850 |
|
|
|
(225 |
) |
-1.0 |
% |
|
|
24,410 |
|
|
|
(1,785 |
) |
|
-7.3 |
% |
Customers' liability on acceptances |
|
41 |
|
|
|
328 |
|
|
|
(287 |
) |
-87.5 |
% |
|
|
182 |
|
|
|
(141 |
) |
|
-77.5 |
% |
Servicing assets |
|
7,541 |
|
|
|
7,176 |
|
|
|
365 |
|
5.1 |
% |
|
|
7,202 |
|
|
|
339 |
|
|
4.7 |
% |
Goodwill and other intangible assets, net |
|
11,193 |
|
|
|
11,225 |
|
|
|
(32 |
) |
-0.3 |
% |
|
|
11,353 |
|
|
|
(160 |
) |
|
-1.4 |
% |
Federal Home Loan Bank ("FHLB") stock, at cost |
|
16,385 |
|
|
|
16,385 |
|
|
|
- |
|
0.0 |
% |
|
|
16,385 |
|
|
|
- |
|
|
0.0 |
% |
Bank-owned life insurance |
|
55,814 |
|
|
|
55,544 |
|
|
|
270 |
|
0.5 |
% |
|
|
55,149 |
|
|
|
665 |
|
|
1.2 |
% |
Prepaid expenses and other assets |
|
124,764 |
|
|
|
136,305 |
|
|
|
(11,541 |
) |
-8.5 |
% |
|
|
139,006 |
|
|
|
(14,242 |
) |
|
-10.2 |
% |
Total assets |
$ |
7,434,130 |
|
|
$ |
7,378,262 |
|
|
$ |
55,868 |
|
0.8 |
% |
|
$ |
6,737,052 |
|
|
$ |
697,078 |
|
|
10.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
2,334,083 |
|
|
$ |
2,539,602 |
|
|
$ |
(205,519 |
) |
-8.1 |
% |
|
$ |
2,678,726 |
|
|
$ |
(344,643 |
) |
|
-12.9 |
% |
Interest-bearing |
|
3,866,955 |
|
|
|
3,628,470 |
|
|
|
238,485 |
|
6.6 |
% |
|
|
3,104,444 |
|
|
|
762,511 |
|
|
24.6 |
% |
Total deposits |
|
6,201,038 |
|
|
|
6,168,072 |
|
|
|
32,966 |
|
0.5 |
% |
|
|
5,783,170 |
|
|
|
417,868 |
|
|
7.2 |
% |
Accrued interest payable |
|
20,512 |
|
|
|
7,792 |
|
|
|
12,720 |
|
163.2 |
% |
|
|
966 |
|
|
|
19,546 |
|
|
2023.4 |
% |
Bank's liability on acceptances |
|
41 |
|
|
|
328 |
|
|
|
(287 |
) |
-87.5 |
% |
|
|
182 |
|
|
|
(141 |
) |
|
-77.5 |
% |
Borrowings |
|
350,000 |
|
|
|
350,000 |
|
|
|
- |
|
0.0 |
% |
|
|
125,000 |
|
|
|
225,000 |
|
|
180.0 |
% |
Subordinated debentures |
|
129,558 |
|
|
|
129,409 |
|
|
|
149 |
|
0.1 |
% |
|
|
128,967 |
|
|
|
591 |
|
|
0.5 |
% |
Accrued expenses and other liabilities |
|
70,816 |
|
|
|
85,146 |
|
|
|
(14,330 |
) |
-16.8 |
% |
|
|
77,315 |
|
|
|
(6,499 |
) |
|
-8.4 |
% |
Total liabilities |
|
6,771,965 |
|
|
|
6,740,747 |
|
|
|
31,218 |
|
0.5 |
% |
|
|
6,115,600 |
|
|
|
656,365 |
|
|
10.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
33 |
|
|
|
33 |
|
|
|
- |
|
0.0 |
% |
|
|
33 |
|
|
|
- |
|
|
0.0 |
% |
Additional paid-in capital |
|
584,884 |
|
|
|
583,410 |
|
|
|
1,474 |
|
0.3 |
% |
|
|
581,337 |
|
|
|
3,547 |
|
|
0.6 |
% |
Accumulated other comprehensive income |
|
(79,059 |
) |
|
|
(88,985 |
) |
|
|
9,926 |
|
11.2 |
% |
|
|
(44,819 |
) |
|
|
(34,240 |
) |
|
-76.4 |
% |
Retained earnings |
|
283,910 |
|
|
|
269,542 |
|
|
|
14,368 |
|
5.3 |
% |
|
|
210,788 |
|
|
|
73,122 |
|
|
34.7 |
% |
Less treasury stock |
|
(127,603 |
) |
|
|
(126,485 |
) |
|
|
(1,118 |
) |
-0.9 |
% |
|
|
(125,887 |
) |
|
|
(1,716 |
) |
|
-1.4 |
% |
Total stockholders' equity |
|
662,165 |
|
|
|
637,515 |
|
|
|
24,650 |
|
3.9 |
% |
|
|
621,452 |
|
|
|
40,713 |
|
|
6.6 |
% |
Total liabilities and stockholders' equity |
$ |
7,434,130 |
|
|
$ |
7,378,262 |
|
|
|
55,868 |
|
0.8 |
% |
|
$ |
6,737,052 |
|
|
$ |
697,078 |
|
|
10.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi
Financial Corporation and Subsidiaries |
Consolidated
Statements of Income (Unaudited) |
(Dollars in thousands,
except share and per share data) |
|
Three Months Ended |
|
March
31, |
|
December
31, |
|
Percentage |
March
31, |
|
Percentage |
|
2023 |
|
2022 |
|
Change |
2022 |
|
Change |
Interest and dividend income: |
|
|
|
|
|
|
|
|
Interest and fees on loans receivable |
$ |
80,923 |
|
$ |
77,123 |
|
4.9 |
% |
$ |
53,924 |
|
|
50.1 |
% |
Interest on securities |
|
4,025 |
|
|
3,633 |
|
10.8 |
% |
|
2,516 |
|
|
60.0 |
% |
Dividends on FHLB stock |
|
289 |
|
|
289 |
|
0.0 |
% |
|
248 |
|
|
16.5 |
% |
Interest on deposits in other banks |
|
2,066 |
|
|
1,194 |
|
73.0 |
% |
|
216 |
|
|
856.5 |
% |
Total interest and dividend income |
|
87,303 |
|
|
82,239 |
|
6.2 |
% |
|
56,904 |
|
|
53.4 |
% |
Interest expense: |
|
|
|
|
|
|
|
|
Interest on deposits |
|
25,498 |
|
|
14,900 |
|
71.1 |
% |
|
2,013 |
|
|
1166.7 |
% |
Interest on borrowings |
|
2,369 |
|
|
1,192 |
|
98.7 |
% |
|
337 |
|
|
603.0 |
% |
Interest on subordinated debentures |
|
1,583 |
|
|
1,586 |
|
-0.2 |
% |
|
3,598 |
|
|
-56.0 |
% |
Total interest expense |
|
29,450 |
|
|
17,678 |
|
66.6 |
% |
|
5,948 |
|
|
395.1 |
% |
Net interest
income before credit loss expense |
|
57,853 |
|
|
64,561 |
|
-10.4 |
% |
|
50,956 |
|
|
13.5 |
% |
Credit loss expense (recovery) |
|
2,133 |
|
|
52 |
|
4001.9 |
% |
|
(1,375 |
) |
|
164.5 |
% |
Net interest
income after credit loss expense |
|
55,720 |
|
|
64,509 |
|
-13.6 |
% |
|
52,331 |
|
|
6.5 |
% |
Noninterest income: |
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
2,579 |
|
|
2,742 |
|
-5.9 |
% |
|
2,875 |
|
|
-10.3 |
% |
Trade finance and other service charges and fees |
|
1,258 |
|
|
1,115 |
|
12.8 |
% |
|
1,142 |
|
|
10.2 |
% |
Gain on sale of Small Business Administration ("SBA") loans |
|
1,869 |
|
|
1,933 |
|
-3.3 |
% |
|
2,521 |
|
|
-25.9 |
% |
Other operating income |
|
2,630 |
|
|
1,667 |
|
57.8 |
% |
|
1,982 |
|
|
32.7 |
% |
Total noninterest income |
|
8,336 |
|
|
7,457 |
|
11.8 |
% |
|
8,520 |
|
|
-2.2 |
% |
Noninterest expense: |
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
20,610 |
|
|
20,279 |
|
1.6 |
% |
|
17,717 |
|
|
16.3 |
% |
Occupancy and equipment |
|
4,412 |
|
|
3,668 |
|
20.3 |
% |
|
4,646 |
|
|
-5.0 |
% |
Data processing |
|
3,253 |
|
|
3,431 |
|
-5.2 |
% |
|
3,236 |
|
|
0.5 |
% |
Professional fees |
|
1,335 |
|
|
1,783 |
|
-25.1 |
% |
|
1,430 |
|
|
-6.6 |
% |
Supplies and communications |
|
676 |
|
|
683 |
|
-1.0 |
% |
|
665 |
|
|
1.7 |
% |
Advertising and promotion |
|
833 |
|
|
974 |
|
-14.5 |
% |
|
817 |
|
|
2.0 |
% |
Other operating expenses |
|
1,672 |
|
|
3,026 |
|
-44.7 |
% |
|
3,181 |
|
|
-47.4 |
% |
Total noninterest expense |
|
32,791 |
|
|
33,844 |
|
-3.1 |
% |
|
31,692 |
|
|
3.5 |
% |
Income
before tax |
|
31,265 |
|
|
38,122 |
|
-18.0 |
% |
|
29,159 |
|
|
7.2 |
% |
Income tax expense |
|
9,274 |
|
|
9,643 |
|
-3.8 |
% |
|
8,464 |
|
|
9.6 |
% |
Net
income |
$ |
21,991 |
|
$ |
28,479 |
|
-22.8 |
% |
$ |
20,695 |
|
|
6.3 |
% |
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share: |
$ |
0.72 |
|
$ |
0.93 |
|
|
$ |
0.68 |
|
|
|
Diluted
earnings per share: |
$ |
0.72 |
|
$ |
0.93 |
|
|
$ |
0.68 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
30,347,325 |
|
|
30,346,343 |
|
|
|
30,254,212 |
|
|
|
Diluted |
|
30,430,745 |
|
|
30,442,175 |
|
|
|
30,377,580 |
|
|
|
Common
shares outstanding |
|
30,555,287 |
|
|
30,485,621 |
|
|
|
30,468,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi
Financial Corporation and Subsidiaries |
Average
Balance, Average Yield Earned, and Average Rate Paid
(Unaudited) |
(Dollars in
thousands) |
|
Three Months Ended |
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
|
|
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) |
$ |
5,944,399 |
|
|
$ |
80,923 |
5.51 |
% |
|
$ |
5,877,298 |
|
|
$ |
77,123 |
5.21 |
% |
|
$ |
5,231,672 |
|
|
$ |
53,924 |
4.18 |
% |
Securities(2) |
|
980,712 |
|
|
|
4,025 |
1.67 |
% |
|
|
966,299 |
|
|
|
3,633 |
1.53 |
% |
|
|
930,505 |
|
|
|
2,516 |
1.11 |
% |
FHLB stock |
|
16,385 |
|
|
|
289 |
7.16 |
% |
|
|
16,385 |
|
|
|
289 |
7.00 |
% |
|
|
16,385 |
|
|
|
248 |
6.14 |
% |
Interest-bearing deposits in other banks |
|
192,902 |
|
|
|
2,066 |
4.34 |
% |
|
|
138,476 |
|
|
|
1,194 |
3.42 |
% |
|
|
494,887 |
|
|
|
216 |
0.18 |
% |
Total interest-earning assets |
|
7,134,398 |
|
|
|
87,303 |
4.96 |
% |
|
|
6,998,458 |
|
|
|
82,239 |
4.67 |
% |
|
|
6,673,449 |
|
|
|
56,904 |
3.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
65,088 |
|
|
|
|
|
|
70,203 |
|
|
|
|
|
|
62,968 |
|
|
|
|
Allowance for credit losses |
|
(71,452 |
) |
|
|
|
|
|
(71,976 |
) |
|
|
|
|
|
(73,177 |
) |
|
|
|
Other assets |
|
239,121 |
|
|
|
|
|
|
255,493 |
|
|
|
|
|
|
229,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
7,367,155 |
|
|
|
|
|
$ |
7,252,178 |
|
|
|
|
|
$ |
6,893,192 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand: interest-bearing |
$ |
109,391 |
|
|
$ |
29 |
0.11 |
% |
|
$ |
119,106 |
|
|
$ |
32 |
0.11 |
% |
|
$ |
124,892 |
|
|
$ |
17 |
0.06 |
% |
Money market and savings |
|
1,453,569 |
|
|
|
7,315 |
2.04 |
% |
|
|
1,781,834 |
|
|
|
6,187 |
1.38 |
% |
|
|
2,106,008 |
|
|
|
1,189 |
0.23 |
% |
Time deposits |
|
2,223,615 |
|
|
|
18,154 |
3.31 |
% |
|
|
1,585,798 |
|
|
|
8,681 |
2.17 |
% |
|
|
937,044 |
|
|
|
807 |
0.35 |
% |
Total interest-bearing deposits |
|
3,786,575 |
|
|
|
25,498 |
2.73 |
% |
|
|
3,486,738 |
|
|
|
14,900 |
1.70 |
% |
|
|
3,167,944 |
|
|
|
2,013 |
0.26 |
% |
Borrowings |
|
268,056 |
|
|
|
2,369 |
3.58 |
% |
|
|
197,554 |
|
|
|
1,269 |
2.55 |
% |
|
|
130,556 |
|
|
|
337 |
1.05 |
% |
Subordinated debentures |
|
129,483 |
|
|
|
1,583 |
4.89 |
% |
|
|
129,335 |
|
|
|
1,509 |
4.67 |
% |
|
|
213,171 |
|
|
|
3,598 |
6.75 |
% |
Total interest-bearing liabilities |
|
4,184,114 |
|
|
|
29,450 |
2.85 |
% |
|
|
3,813,627 |
|
|
|
17,678 |
1.84 |
% |
|
|
3,511,671 |
|
|
|
5,948 |
0.69 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities and equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits: noninterest-bearing |
|
2,324,413 |
|
|
|
|
|
|
2,593,948 |
|
|
|
|
|
|
2,634,398 |
|
|
|
|
Other liabilities |
|
127,112 |
|
|
|
|
|
|
134,074 |
|
|
|
|
|
|
88,367 |
|
|
|
|
Stockholders' equity |
|
731,516 |
|
|
|
|
|
|
710,529 |
|
|
|
|
|
|
658,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
7,367,155 |
|
|
|
|
|
$ |
7,252,178 |
|
|
|
|
|
$ |
6,893,192 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income (tax equivalent basis) |
|
|
$ |
57,853 |
|
|
|
|
$ |
64,561 |
|
|
|
|
$ |
50,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of deposits |
|
|
|
1.69 |
% |
|
|
|
|
0.97 |
% |
|
|
|
|
0.14 |
% |
Net
interest spread (taxable equivalent basis) |
|
|
|
2.10 |
% |
|
|
|
|
2.83 |
% |
|
|
|
|
2.77 |
% |
Net
interest margin (taxable equivalent basis) |
|
|
|
3.28 |
% |
|
|
|
|
3.67 |
% |
|
|
|
|
3.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
|
|
|
|
|
|
|
|
|
|
March
31, |
|
December
31, |
|
September
30, |
|
June
30, |
|
March
31, |
Hanmi Financial Corporation |
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
Assets |
$ |
7,434,130 |
|
|
$ |
7,378,262 |
|
|
$ |
7,128,511 |
|
|
$ |
6,955,968 |
|
|
$ |
6,737,052 |
|
Less goodwill and other intangible assets |
|
(11,193 |
) |
|
|
(11,225 |
) |
|
|
(11,267 |
) |
|
|
(11,310 |
) |
|
|
(11,353 |
) |
Tangible
assets |
$ |
7,422,937 |
|
|
$ |
7,367,037 |
|
|
$ |
7,117,244 |
|
|
$ |
6,944,658 |
|
|
$ |
6,725,699 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity(1) |
$ |
662,165 |
|
|
$ |
637,515 |
|
|
$ |
608,893 |
|
|
$ |
618,296 |
|
|
$ |
621,452 |
|
Less goodwill and other intangible assets |
|
(11,193 |
) |
|
|
(11,225 |
) |
|
|
(11,267 |
) |
|
|
(11,310 |
) |
|
|
(11,353 |
) |
Tangible
stockholders' equity(1) |
$ |
650,972 |
|
|
$ |
626,290 |
|
|
$ |
597,626 |
|
|
$ |
606,986 |
|
|
$ |
610,099 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity to assets |
|
8.91 |
% |
|
|
8.64 |
% |
|
|
8.54 |
% |
|
|
8.89 |
% |
|
|
9.22 |
% |
Tangible
common equity to tangible assets(1) |
|
8.77 |
% |
|
|
8.50 |
% |
|
|
8.40 |
% |
|
|
8.74 |
% |
|
|
9.07 |
% |
|
|
|
|
|
|
|
|
|
|
Common
shares outstanding |
|
30,555,287 |
|
|
|
30,485,621 |
|
|
|
30,484,004 |
|
|
|
30,482,990 |
|
|
|
30,468,458 |
|
Tangible
common equity per common share |
$ |
21.30 |
|
|
$ |
20.54 |
|
|
$ |
19.60 |
|
|
$ |
19.91 |
|
|
$ |
20.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) There were no preferred shares outstanding at the periods
indicated. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial (NASDAQ:HAFC)
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From Jul 2023 to Jul 2024