Hanmi Financial Corporation (NASDAQ: HAFC, or
“Hanmi”), the parent company of Hanmi Bank (the “Bank”),
today reported financial results for the first quarter of 2024.
Net income for the first quarter of 2024 was $15.2 million, or
$0.50 per diluted share, compared with $18.6 million, or $0.61 per
diluted share, for the fourth quarter of 2023. The return on
average assets for the first quarter was 0.81% and the return on
average equity was 7.90%, compared with a return on average assets
of 0.99% and the return on average equity of 9.70% for the fourth
quarter of 2023.
CEO Commentary“Our first
quarter performance highlights the continued execution of our
strategy of diversifying our loan portfolio and deposit franchise,”
said Bonnie Lee, President and Chief Executive Officer of Hanmi.
“Our relationship banking model enabled us to attract new
customers, expanding our market share and driving a 6% annualized
increase in deposits and a nearly 4% net increase in our C&I
portfolio in the first quarter. We remained disciplined and
selective in our underwriting practices, which have resulted in
excellent asset quality.”
“The Hanmi franchise is robust and well positioned to
successfully navigate a dynamic economic environment. Our balance
sheet is solid with ample liquidity, and we have strong credit
quality and excellent capital ratios. Furthermore, we have a
healthy loan pipeline, stable core deposits, and well-managed
expenses. Looking ahead, we will continue to optimize our
branch network through a consolidation of existing offices and by
entering new markets this year. I am grateful to our team of highly
skilled bankers who continually build enduring banking
relationships with our customers and create value for our
shareholders.”
First Quarter 2024
Highlights:
- First quarter net
income was $15.2 million, or $0.50 per diluted share, compared with
$18.6 million, or $0.61 per diluted share for the fourth quarter of
2023. The decline in net income reflects the change to a credit
loss expense for the first quarter from a recovery during the
fourth quarter of 2023, lower net interest income, and higher
noninterest expense, partially offset by higher noninterest
income.
- Loans receivable
were $6.18 billion at March 31, 2024, essentially unchanged from
the end of the fourth quarter of 2023; loan production for the
first quarter was $234.0 million with a weighted average interest
rate of 8.02%.
- Deposits were
$6.38 billion at March 31, 2024, up 1.5% from the end of the fourth
quarter of 2023; noninterest-bearing demand deposits were 30.3% of
total deposits at the end of the first quarter.
- Net interest
income for the first quarter was $50.7 million, down $2.4 million,
or 4.7%, from the fourth quarter of 2023, and net interest margin
(taxable equivalent) was 2.78% for the first quarter, down 14 basis
points; the average yield on loans increased 12 basis points while
the cost of interest-bearing deposits increased 33 basis
points.
- Noninterest income for the first
quarter was $7.7 million, up $1.1 million, or 15.8%, from the
fourth quarter of 2023, primarily reflecting a $0.4 million gain on
the sale of residential mortgage loans, a $0.3 million valuation
adjustment to bank-owned life insurance in the fourth quarter of
2023, and higher trade finance and remittance fees of $0.2
million.
- Noninterest expenses were $36.4
million for the first quarter, up $1.2 million, or 3.5%, from the
fourth quarter of 2023, primarily reflecting an increase in
salaries and benefits, partially offset by declines in nearly all
other expense categories.
- Asset quality remained favorable
with criticized loans declining 11.1% from the year-end 2023 to
$86.0 million, or 1.4% of loans. Nonperforming assets declined 9.3%
to $14.1 million, or 0.19% of total assets, and net charge offs
were low at $1.6 million, or 0.10% of average loans
(annualized).
For more information about Hanmi, please see the
Q1 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 |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
Q1-24 |
|
Q1-24 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
vs. Q4-23 |
|
vs. Q1-23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
15,164 |
|
|
$ |
18,633 |
|
|
$ |
18,796 |
|
|
$ |
20,620 |
|
|
$ |
21,991 |
|
|
$ |
(3,469 |
) |
|
$ |
(6,827 |
) |
Net income per diluted common share |
$ |
0.50 |
|
|
$ |
0.61 |
|
|
$ |
0.62 |
|
|
$ |
0.67 |
|
|
$ |
0.72 |
|
|
$ |
(0.11 |
) |
|
$ |
(0.22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
7,512,046 |
|
|
$ |
7,570,341 |
|
|
$ |
7,350,140 |
|
|
$ |
7,344,924 |
|
|
$ |
7,434,130 |
|
|
$ |
(58,295 |
) |
|
$ |
77,916 |
|
Loans receivable |
$ |
6,177,840 |
|
|
$ |
6,182,434 |
|
|
$ |
6,020,785 |
|
|
$ |
5,965,171 |
|
|
$ |
5,980,458 |
|
|
$ |
(4,594 |
) |
|
$ |
197,382 |
|
Deposits |
$ |
6,376,060 |
|
|
$ |
6,280,574 |
|
|
$ |
6,260,072 |
|
|
$ |
6,315,768 |
|
|
$ |
6,201,038 |
|
|
$ |
95,486 |
|
|
$ |
175,022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.81 |
% |
|
|
0.99 |
% |
|
|
1.00 |
% |
|
|
1.12 |
% |
|
|
1.21 |
% |
|
|
-0.18 |
|
|
|
-0.40 |
|
Return on average stockholders' equity |
|
7.90 |
% |
|
|
9.70 |
% |
|
|
9.88 |
% |
|
|
11.14 |
% |
|
|
12.19 |
% |
|
|
-1.80 |
|
|
|
-4.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
2.78 |
% |
|
|
2.92 |
% |
|
|
3.03 |
% |
|
|
3.11 |
% |
|
|
3.28 |
% |
|
|
-0.14 |
|
|
|
-0.50 |
|
Efficiency ratio (1) |
|
62.42 |
% |
|
|
58.86 |
% |
|
|
51.82 |
% |
|
|
54.11 |
% |
|
|
49.54 |
% |
|
|
3.56 |
|
|
|
12.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets (2) |
|
9.23 |
% |
|
|
9.14 |
% |
|
|
8.89 |
% |
|
|
8.96 |
% |
|
|
8.77 |
% |
|
|
0.09 |
|
|
|
0.46 |
|
Tangible common equity per common share (2) |
$ |
22.86 |
|
|
$ |
22.75 |
|
|
$ |
21.45 |
|
|
$ |
21.56 |
|
|
$ |
21.30 |
|
|
|
0.11 |
|
|
|
1.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 first quarter decreased $2.4 million to
$50.7 million from $53.1 million for the fourth quarter of 2023,
down 4.7%. 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. The cost of interest-bearing
deposits increased 33 basis points to 4.16% for the first quarter
of 2024, from 3.83% for the fourth quarter of 2023. The increase in
the cost of interest-bearing deposits was due to higher market
interest rates and higher average balances. Average
interest-bearing deposits were $4.41 billion for the first quarter,
up 5.6% from $4.17 billion for the fourth quarter of 2023. The
yield on average loans for the first quarter increased 12 basis
points to 6.00%, from 5.88% for the fourth quarter of 2023. Average
loans were $6.14 billion for the first quarter, up 1.1% from $6.07
billion for the fourth quarter of 2023. First quarter loan
prepayment fees were $0.2 million, compared to $0.1 million for the
fourth quarter of 2023. Net interest margin (taxable-equivalent)
for the first quarter was 2.78%, compared with 2.92% for the fourth
quarter of 2023.
|
As of or For the Three Months Ended (in
thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-24 |
|
Q1-24 |
Net Interest Income |
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
vs. Q4-23 |
|
vs. Q1-23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans receivable(1) |
$ |
91,674 |
|
|
$ |
89,922 |
|
|
$ |
85,398 |
|
|
$ |
83,567 |
|
|
$ |
80,923 |
|
|
|
1.9 |
% |
|
|
13.3 |
% |
Interest on securities |
|
4,955 |
|
|
|
4,583 |
|
|
|
4,204 |
|
|
|
4,126 |
|
|
|
4,025 |
|
|
|
8.1 |
% |
|
|
23.1 |
% |
Dividends on FHLB stock |
|
361 |
|
|
|
341 |
|
|
|
317 |
|
|
|
283 |
|
|
|
289 |
|
|
|
5.9 |
% |
|
|
24.9 |
% |
Interest on deposits in other banks |
|
2,604 |
|
|
|
2,337 |
|
|
|
4,153 |
|
|
|
2,794 |
|
|
|
2,066 |
|
|
|
11.4 |
% |
|
|
26.0 |
% |
Total interest and dividend income |
$ |
99,594 |
|
|
$ |
97,183 |
|
|
$ |
94,072 |
|
|
$ |
90,770 |
|
|
$ |
87,303 |
|
|
|
2.5 |
% |
|
|
14.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
45,638 |
|
|
|
40,277 |
|
|
|
36,818 |
|
|
|
32,115 |
|
|
|
25,498 |
|
|
|
13.3 |
% |
|
|
79.0 |
% |
Interest on borrowings |
|
1,655 |
|
|
|
2,112 |
|
|
|
753 |
|
|
|
1,633 |
|
|
|
2,369 |
|
|
|
-21.6 |
% |
|
|
-30.1 |
% |
Interest on subordinated debentures |
|
1,646 |
|
|
|
1,654 |
|
|
|
1,646 |
|
|
|
1,600 |
|
|
|
1,583 |
|
|
|
-0.5 |
% |
|
|
4.0 |
% |
Total interest expense |
|
48,939 |
|
|
|
44,043 |
|
|
|
39,217 |
|
|
|
35,348 |
|
|
|
29,450 |
|
|
|
11.1 |
% |
|
|
66.2 |
% |
Net interest income |
$ |
50,655 |
|
|
$ |
53,140 |
|
|
$ |
54,855 |
|
|
$ |
55,422 |
|
|
$ |
57,853 |
|
|
|
-4.7 |
% |
|
|
-12.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes loans held for
sale. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended (in
thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-24 |
|
Q1-24 |
Average Earning Assets and Interest-bearing
Liabilities |
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
vs. Q4-23 |
|
vs. Q1-23 |
Loans receivable (1) |
$ |
6,137,888 |
|
|
$ |
6,071,644 |
|
|
$ |
5,915,423 |
|
|
$ |
5,941,071 |
|
|
$ |
5,944,399 |
|
|
|
1.1 |
% |
|
|
3.3 |
% |
Securities |
|
969,520 |
|
|
|
961,551 |
|
|
|
955,473 |
|
|
|
971,531 |
|
|
|
980,712 |
|
|
|
0.8 |
% |
|
|
-1.1 |
% |
FHLB stock |
|
16,385 |
|
|
|
16,385 |
|
|
|
16,385 |
|
|
|
16,385 |
|
|
|
16,385 |
|
|
|
0.0 |
% |
|
|
0.0 |
% |
Interest-bearing deposits in other banks |
|
201,724 |
|
|
|
181,140 |
|
|
|
317,498 |
|
|
|
230,974 |
|
|
|
192,902 |
|
|
|
11.4 |
% |
|
|
4.6 |
% |
Average interest-earning assets |
$ |
7,325,517 |
|
|
$ |
7,230,720 |
|
|
$ |
7,204,779 |
|
|
$ |
7,159,961 |
|
|
$ |
7,134,398 |
|
|
|
1.3 |
% |
|
|
2.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand: interest-bearing |
$ |
86,401 |
|
|
$ |
86,679 |
|
|
$ |
94,703 |
|
|
$ |
99,057 |
|
|
$ |
109,391 |
|
|
|
-0.3 |
% |
|
|
-21.0 |
% |
Money market and savings |
|
1,815,085 |
|
|
|
1,669,973 |
|
|
|
1,601,826 |
|
|
|
1,463,304 |
|
|
|
1,453,569 |
|
|
|
8.7 |
% |
|
|
24.9 |
% |
Time deposits |
|
2,507,830 |
|
|
|
2,417,803 |
|
|
|
2,438,112 |
|
|
|
2,403,685 |
|
|
|
2,223,615 |
|
|
|
3.7 |
% |
|
|
12.8 |
% |
Average interest-bearing deposits |
|
4,409,316 |
|
|
|
4,174,455 |
|
|
|
4,134,641 |
|
|
|
3,966,046 |
|
|
|
3,786,575 |
|
|
|
5.6 |
% |
|
|
16.4 |
% |
Borrowings |
|
162,418 |
|
|
|
205,951 |
|
|
|
120,381 |
|
|
|
196,776 |
|
|
|
268,056 |
|
|
|
-21.1 |
% |
|
|
-39.4 |
% |
Subordinated debentures |
|
130,088 |
|
|
|
129,933 |
|
|
|
129,780 |
|
|
|
129,631 |
|
|
|
129,483 |
|
|
|
0.1 |
% |
|
|
0.5 |
% |
Average interest-bearing liabilities |
$ |
4,701,822 |
|
|
$ |
4,510,339 |
|
|
$ |
4,384,802 |
|
|
$ |
4,292,453 |
|
|
$ |
4,184,114 |
|
|
|
4.2 |
% |
|
|
12.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Noninterest Bearing Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits - noninterest bearing |
$ |
1,921,189 |
|
|
$ |
2,025,212 |
|
|
$ |
2,136,156 |
|
|
$ |
2,213,171 |
|
|
$ |
2,324,413 |
|
|
|
-5.1 |
% |
|
|
-17.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes loans held for
sale. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
Yield/Rate Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-24 |
|
Q1-24 |
Average Yields and Rates |
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
vs. Q4-23 |
|
vs. Q1-23 |
Loans receivable(1) |
|
6.00 |
% |
|
|
5.88 |
% |
|
|
5.73 |
% |
|
|
5.64 |
% |
|
|
5.51 |
% |
|
|
0.12 |
|
|
|
0.49 |
|
Securities (2) |
|
2.07 |
% |
|
|
1.93 |
% |
|
|
1.79 |
% |
|
|
1.73 |
% |
|
|
1.67 |
% |
|
|
0.14 |
|
|
|
0.40 |
|
FHLB stock |
|
8.87 |
% |
|
|
8.25 |
% |
|
|
7.67 |
% |
|
|
6.92 |
% |
|
|
7.16 |
% |
|
|
0.62 |
|
|
|
1.71 |
|
Interest-bearing deposits in other banks |
|
5.19 |
% |
|
|
5.12 |
% |
|
|
5.19 |
% |
|
|
4.85 |
% |
|
|
4.34 |
% |
|
|
0.07 |
|
|
|
0.85 |
|
Interest-earning assets |
|
5.47 |
% |
|
|
5.34 |
% |
|
|
5.19 |
% |
|
|
5.09 |
% |
|
|
4.96 |
% |
|
|
0.13 |
|
|
|
0.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
4.16 |
% |
|
|
3.83 |
% |
|
|
3.53 |
% |
|
|
3.25 |
% |
|
|
2.73 |
% |
|
|
0.33 |
|
|
|
1.43 |
|
Borrowings |
|
4.10 |
% |
|
|
4.07 |
% |
|
|
2.48 |
% |
|
|
3.33 |
% |
|
|
3.58 |
% |
|
|
0.03 |
|
|
|
0.51 |
|
Subordinated debentures |
|
5.06 |
% |
|
|
5.09 |
% |
|
|
5.07 |
% |
|
|
4.94 |
% |
|
|
4.89 |
% |
|
|
-0.03 |
|
|
|
0.17 |
|
Interest-bearing liabilities |
|
4.19 |
% |
|
|
3.88 |
% |
|
|
3.55 |
% |
|
|
3.30 |
% |
|
|
2.85 |
% |
|
|
0.31 |
|
|
|
1.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (taxable equivalent basis) |
|
2.78 |
% |
|
|
2.92 |
% |
|
|
3.03 |
% |
|
|
3.11 |
% |
|
|
3.28 |
% |
|
|
-0.14 |
|
|
|
-0.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of deposits |
|
2.90 |
% |
|
|
2.58 |
% |
|
|
2.33 |
% |
|
|
2.08 |
% |
|
|
1.69 |
% |
|
|
0.32 |
|
|
|
1.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
$0.2 million, compared to a credit loss recovery of $2.9 million
for the fourth quarter of 2023. First quarter credit loss expense
included a $0.4 million credit loss expense for loan losses, offset
by a $0.2 million recovery for off-balance sheet items. First
quarter net loan charge-offs were $1.6 million, compared to fourth
quarter of 2023 net loan recoveries of $5.0 million that included a
$6.0 million recovery from a 2019 troubled loan relationship.
Noninterest income for the first quarter
increased $1.1 million to $7.7 million, or 15.8%, from $6.7 million
for the fourth quarter of 2023. The increase primarily reflected a
$0.4 million gain on sale of residential mortgage loans, a $0.3
million valuation adjustment to bank-owned life insurance in the
fourth quarter of 2023, and a $0.2 million increase in trade
finance and other service charges and fees. Additionally, gains on
sales of SBA loans remained stable at $1.5 million. The volume of
SBA loans sold in the first quarter decreased to $25.6 million,
from $29.9 million for the fourth quarter of 2023, while trade
premiums increased to 7.23% for the first quarter, from 6.17% for
the fourth quarter of 2023.
|
For the Three Months Ended (in
thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-24 |
|
Q1-24 |
Noninterest Income |
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
vs. Q4-23 |
|
vs. Q1-23 |
Service charges on deposit accounts |
$ |
2,450 |
|
|
$ |
2,391 |
|
|
$ |
2,605 |
|
|
$ |
2,571 |
|
|
$ |
2,579 |
|
|
|
2.5 |
% |
|
|
-5.0 |
% |
Trade finance and other service charges and fees |
|
1,414 |
|
|
|
1,245 |
|
|
|
1,155 |
|
|
|
1,173 |
|
|
|
1,258 |
|
|
|
13.6 |
% |
|
|
12.4 |
% |
Servicing income |
|
712 |
|
|
|
772 |
|
|
|
838 |
|
|
|
825 |
|
|
|
742 |
|
|
|
-7.8 |
% |
|
|
-4.0 |
% |
Bank-owned life insurance income (expense) |
|
304 |
|
|
|
(29 |
) |
|
|
280 |
|
|
|
271 |
|
|
|
270 |
|
|
|
1148.3 |
% |
|
|
12.6 |
% |
All other operating income |
|
928 |
|
|
|
853 |
|
|
|
1,178 |
|
|
|
1,811 |
|
|
|
1,618 |
|
|
|
8.8 |
% |
|
|
-42.6 |
% |
Service charges, fees & other |
|
5,808 |
|
|
|
5,232 |
|
|
|
6,056 |
|
|
|
6,651 |
|
|
|
6,467 |
|
|
|
11.0 |
% |
|
|
-10.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of SBA loans |
|
1,482 |
|
|
|
1,448 |
|
|
|
1,172 |
|
|
|
1,212 |
|
|
|
1,869 |
|
|
|
2.3 |
% |
|
|
-20.7 |
% |
Gain on sale of mortgage loans |
|
443 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.0 |
% |
|
|
0.0 |
% |
Net gain (loss) on sales of securities |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,871 |
) |
|
|
- |
|
|
|
0.0 |
% |
|
|
0.0 |
% |
Gain (loss) on sale of bank premises |
|
- |
|
|
|
- |
|
|
|
4,000 |
|
|
|
- |
|
|
|
- |
|
|
|
0.0 |
% |
|
|
0.0 |
% |
Legal settlement |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,943 |
|
|
|
- |
|
|
|
0.0 |
% |
|
|
0.0 |
% |
Total noninterest income |
$ |
7,733 |
|
|
$ |
6,680 |
|
|
$ |
11,228 |
|
|
$ |
7,935 |
|
|
$ |
8,336 |
|
|
|
15.8 |
% |
|
|
-7.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense for the first quarter
increased by $1.2 million to $36.4 million from $35.2 million for
the fourth quarter of 2023. The increase was primarily due to a
$1.5 million increase in salaries and benefits due to seasonally
higher employer taxes and benefits of $1.4 million. All other
categories of noninterest expense combined, except for data
processing, decreased $0.3 million in the first quarter from the
fourth quarter of 2023. Data processing increased by less than $0.1
million. The efficiency ratio for the first quarter was 62.42%,
compared with 58.86% for the fourth quarter of 2023, primarily due
to the lower revenue and higher expenses.
|
For the Three Months Ended (in
thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-24 |
|
Q1-24 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
vs. Q4-23 |
|
vs. Q1-23 |
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
$ |
21,585 |
|
|
$ |
20,062 |
|
|
$ |
20,361 |
|
|
$ |
20,365 |
|
|
$ |
20,610 |
|
|
|
7.6 |
% |
|
|
4.7 |
% |
Occupancy and equipment |
|
4,537 |
|
|
|
4,604 |
|
|
|
4,825 |
|
|
|
4,500 |
|
|
|
4,412 |
|
|
|
-1.5 |
% |
|
|
2.8 |
% |
Data processing |
|
3,551 |
|
|
|
3,487 |
|
|
|
3,490 |
|
|
|
3,465 |
|
|
|
3,253 |
|
|
|
1.8 |
% |
|
|
9.2 |
% |
Professional fees |
|
1,893 |
|
|
|
1,977 |
|
|
|
1,568 |
|
|
|
1,376 |
|
|
|
1,335 |
|
|
|
-4.2 |
% |
|
|
41.8 |
% |
Supplies and communication |
|
601 |
|
|
|
613 |
|
|
|
552 |
|
|
|
638 |
|
|
|
676 |
|
|
|
-2.0 |
% |
|
|
-11.1 |
% |
Advertising and promotion |
|
907 |
|
|
|
990 |
|
|
|
534 |
|
|
|
748 |
|
|
|
833 |
|
|
|
-8.4 |
% |
|
|
8.9 |
% |
All other operating expenses |
|
3,160 |
|
|
|
3,252 |
|
|
|
2,852 |
|
|
|
3,243 |
|
|
|
1,957 |
|
|
|
-2.8 |
% |
|
|
61.5 |
% |
Subtotal |
|
36,234 |
|
|
|
34,985 |
|
|
|
34,182 |
|
|
|
34,335 |
|
|
|
33,076 |
|
|
|
3.6 |
% |
|
|
9.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate owned expense (income) |
|
22 |
|
|
|
15 |
|
|
|
16 |
|
|
|
4 |
|
|
|
(201 |
) |
|
|
46.7 |
% |
|
|
-110.9 |
% |
Repossessed personal property expense (income) |
|
189 |
|
|
|
211 |
|
|
|
47 |
|
|
|
(59 |
) |
|
|
(84 |
) |
|
|
-10.4 |
% |
|
|
-325.0 |
% |
Total noninterest expense |
$ |
36,445 |
|
|
$ |
35,211 |
|
|
$ |
34,245 |
|
|
$ |
34,280 |
|
|
$ |
32,791 |
|
|
|
3.5 |
% |
|
|
11.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi recorded a provision for income taxes of
$6.6 million for the first quarter of 2024, compared with $8.8
million for the fourth quarter of 2023, representing an effective
tax rate of 30.2% and 32.2%, respectively for each period. The 2024
first quarter provision included a $0.2 million charge for
share-based compensation vesting and $0.2 million additional
expense associated with amended state tax returns. The fourth
quarter 2023 income tax expense included a $0.6 million charge to
increase the valuation allowance on state net operating loss
carryforwards.
Financial PositionTotal assets
at March 31, 2024 decreased 0.8%, or $58.3 million, to $7.51
billion from $7.57 billion at December 31, 2023. The sequential
quarter decrease reflected a 15.3%, or $46.3 million, decrease in
cash and due from banks, and an $8.0 million decrease in loans held
for sale. The decrease in cash and $95.5 million increase in
deposits supported a $152.5 million reduction in borrowings.
Loans receivable, before allowance for credit
losses, were $6.18 billion at March 31, 2024, consistent with
December 31, 2023. Loans held for sale, representing the guaranteed
portion of SBA 7(a) loans, were $4.0 million at the end of the
first quarter of 2024, down from $12.0 million at year-end
2023.
|
As of (in thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-24 |
|
Q1-24 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
vs. Q4-23 |
|
vs. Q1-23 |
Loan Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans |
$ |
3,878,677 |
|
|
$ |
3,889,739 |
|
|
$ |
3,773,015 |
|
|
$ |
3,738,325 |
|
|
$ |
3,784,176 |
|
|
|
-0.3 |
% |
|
|
2.5 |
% |
Residential/consumer loans |
|
970,362 |
|
|
|
962,661 |
|
|
|
926,326 |
|
|
|
886,984 |
|
|
|
817,917 |
|
|
|
0.8 |
% |
|
|
18.6 |
% |
Commercial and industrial loans |
|
774,851 |
|
|
|
747,819 |
|
|
|
728,792 |
|
|
|
753,456 |
|
|
|
778,149 |
|
|
|
3.6 |
% |
|
|
-0.4 |
% |
Equipment finance |
|
553,950 |
|
|
|
582,215 |
|
|
|
592,652 |
|
|
|
586,406 |
|
|
|
600,216 |
|
|
|
-4.9 |
% |
|
|
-7.7 |
% |
Loans receivable |
|
6,177,840 |
|
|
|
6,182,434 |
|
|
|
6,020,785 |
|
|
|
5,965,171 |
|
|
|
5,980,458 |
|
|
|
-0.1 |
% |
|
|
3.3 |
% |
Loans held for sale |
|
3,999 |
|
|
|
12,013 |
|
|
|
11,767 |
|
|
|
7,293 |
|
|
|
3,652 |
|
|
|
-66.7 |
% |
|
|
9.5 |
% |
Total |
$ |
6,181,839 |
|
|
$ |
6,194,447 |
|
|
$ |
6,032,552 |
|
|
$ |
5,972,464 |
|
|
$ |
5,984,110 |
|
|
|
-0.2 |
% |
|
|
3.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
|
|
|
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
|
|
|
Composition of Loan Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans |
|
62.7 |
% |
|
|
62.8 |
% |
|
|
62.5 |
% |
|
|
62.6 |
% |
|
|
63.2 |
% |
|
|
|
|
Residential/consumer loans |
|
15.7 |
% |
|
|
15.5 |
% |
|
|
15.4 |
% |
|
|
14.9 |
% |
|
|
13.7 |
% |
|
|
|
|
Commercial and industrial loans |
|
12.5 |
% |
|
|
12.1 |
% |
|
|
12.1 |
% |
|
|
12.6 |
% |
|
|
13.0 |
% |
|
|
|
|
Equipment finance |
|
9.0 |
% |
|
|
9.4 |
% |
|
|
9.8 |
% |
|
|
9.8 |
% |
|
|
10.0 |
% |
|
|
|
|
Loans receivable |
|
99.9 |
% |
|
|
99.8 |
% |
|
|
99.8 |
% |
|
|
99.9 |
% |
|
|
99.9 |
% |
|
|
|
|
Loans held for sale |
|
0.1 |
% |
|
|
0.2 |
% |
|
|
0.2 |
% |
|
|
0.1 |
% |
|
|
0.1 |
% |
|
|
|
|
Total |
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New loan production was $234.0 million for the
first quarter of 2024 at an average rate of 8.02%, while $86.3
million of loans paid-off during the quarter at an average rate of
7.60%.
Commercial real estate loan production for the
first quarter of 2024 was $60.1 million. Commercial and industrial
loan production was $50.8 million, SBA loan production was $30.8
million, equipment finance production was $39.2 million, and
residential mortgage loan production was $53.1 million.
|
For the Three Months Ended (in thousands) |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
New Loan Production |
|
|
|
|
|
|
|
|
|
Commercial real estate loans |
$ |
60,085 |
|
|
$ |
178,157 |
|
|
$ |
106,151 |
|
|
$ |
40,989 |
|
|
$ |
75,528 |
|
Commercial and industrial loans |
|
50,789 |
|
|
|
52,079 |
|
|
|
67,907 |
|
|
|
36,322 |
|
|
|
27,055 |
|
SBA loans |
|
30,817 |
|
|
|
48,432 |
|
|
|
36,109 |
|
|
|
30,926 |
|
|
|
34,472 |
|
Equipment finance |
|
39,155 |
|
|
|
57,334 |
|
|
|
71,075 |
|
|
|
50,905 |
|
|
|
69,307 |
|
Residential/consumer loans |
|
53,115 |
|
|
|
53,465 |
|
|
|
55,026 |
|
|
|
100,161 |
|
|
|
97,201 |
|
subtotal |
|
233,961 |
|
|
|
389,467 |
|
|
|
336,268 |
|
|
|
259,303 |
|
|
|
303,563 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payoffs |
|
(86,250 |
) |
|
|
(77,961 |
) |
|
|
(62,140 |
) |
|
|
(120,609 |
) |
|
|
(124,923 |
) |
Amortization |
|
(90,711 |
) |
|
|
(106,610 |
) |
|
|
(116,411 |
) |
|
|
(102,248 |
) |
|
|
(102,675 |
) |
Loan sales |
|
(55,321 |
) |
|
|
(29,861 |
) |
|
|
(22,496 |
) |
|
|
(20,933 |
) |
|
|
(30,002 |
) |
Net line utilization |
|
(4,150 |
) |
|
|
(11,609 |
) |
|
|
(70,238 |
) |
|
|
(28,092 |
) |
|
|
(30,401 |
) |
Charge-offs & OREO |
|
(2,123 |
) |
|
|
(1,777 |
) |
|
|
(9,369 |
) |
|
|
(2,708 |
) |
|
|
(2,237 |
) |
|
|
|
|
|
|
|
|
|
|
Loans receivable-beginning balance |
|
6,182,434 |
|
|
|
6,020,785 |
|
|
|
5,965,171 |
|
|
|
5,980,458 |
|
|
|
5,967,133 |
|
Loans receivable-ending balance |
$ |
6,177,840 |
|
|
$ |
6,182,434 |
|
|
$ |
6,020,785 |
|
|
$ |
5,965,171 |
|
|
$ |
5,980,458 |
|
|
|
|
|
|
|
|
|
|
|
Deposits were $6.38 billion at the end of the
first quarter of 2024, up $95.5 million, or 1.5%, from $6.28
billion at the end of the preceding quarter. Driving the change was
a $125.2 million increase in money market and savings deposits and
a $40.9 million increase in time deposits, partially offset by a
$70.5 million decline in noninterest-bearing demand deposits.
Noninterest-bearing demand deposits represented 30.3% of total
deposits at March 31, 2024 and the loan-to-deposit ratio was
96.9%.
|
As of (in thousands) |
|
Percentage Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-24 |
|
Q1-24 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
vs. Q4-23 |
|
vs. Q1-23 |
Deposit Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand: noninterest-bearing |
$ |
1,933,060 |
|
|
$ |
2,003,596 |
|
|
$ |
2,161,238 |
|
|
$ |
2,206,078 |
|
|
$ |
2,334,083 |
|
|
|
-3.5 |
% |
|
|
-17.2 |
% |
Demand: interest-bearing |
|
87,374 |
|
|
|
87,452 |
|
|
|
88,133 |
|
|
|
97,076 |
|
|
|
104,245 |
|
|
|
-0.1 |
% |
|
|
-16.2 |
% |
Money market and savings |
|
1,859,865 |
|
|
|
1,734,658 |
|
|
|
1,576,006 |
|
|
|
1,580,691 |
|
|
|
1,382,472 |
|
|
|
7.2 |
% |
|
|
34.5 |
% |
Time deposits |
|
2,495,761 |
|
|
|
2,454,868 |
|
|
|
2,434,695 |
|
|
|
2,431,923 |
|
|
|
2,380,238 |
|
|
|
1.7 |
% |
|
|
4.9 |
% |
Total deposits |
$ |
6,376,060 |
|
|
$ |
6,280,574 |
|
|
$ |
6,260,072 |
|
|
$ |
6,315,768 |
|
|
$ |
6,201,038 |
|
|
|
1.5 |
% |
|
|
2.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
|
|
|
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
|
|
|
Composition of Deposit Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand: noninterest-bearing |
|
30.3 |
% |
|
|
31.9 |
% |
|
|
34.5 |
% |
|
|
34.9 |
% |
|
|
37.6 |
% |
|
|
|
|
Demand: interest-bearing |
|
1.4 |
% |
|
|
1.4 |
% |
|
|
1.4 |
% |
|
|
1.5 |
% |
|
|
1.7 |
% |
|
|
|
|
Money market and savings |
|
29.2 |
% |
|
|
27.6 |
% |
|
|
25.2 |
% |
|
|
25.0 |
% |
|
|
22.3 |
% |
|
|
|
|
Time deposits |
|
39.1 |
% |
|
|
39.1 |
% |
|
|
38.9 |
% |
|
|
38.6 |
% |
|
|
38.4 |
% |
|
|
|
|
Total deposits |
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity at March 31, 2024 was
$703.1 million, up $1.2 million from $701.9 million at December 31,
2023. First quarter net income, net of dividends paid, added $7.5
million to stockholders’ equity for the period. This addition was
offset by a $3.4 million increase in unrealized after-tax losses on
securities available for sale due to changes in interest rates
during the first quarter and a $1.6 million increase in unrealized
after-tax losses on cash flow hedges. In addition, Hanmi
repurchased 100,000 shares of common stock during the quarter at an
average share price of $15.92. At March 31, 2024, 309,972 shares
remain under Hanmi’s share repurchase program. Tangible common
stockholders’ equity was $692.0 million, or 9.23% of tangible
assets, at March 31, 2024, compared with $690.8 million, or 9.14%
of tangible assets at the end of the fourth quarter of 2023.
Hanmi and the Bank exceeded minimum regulatory
capital requirements, and the Bank continues to exceed the minimum
for the “well capitalized” category. At March 31, 2024, Hanmi’s
preliminary common equity tier 1 capital ratio was 12.05% and its
total risk-based capital ratio was 15.20%, compared with 11.86% and
14.95%, respectively, at the end of the fourth quarter of 2023.
|
As of |
|
Ratio Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-24 |
|
Q1-24 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
vs. Q4-23 |
|
vs. Q1-23 |
Regulatory Capital ratios (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital |
|
15.20 |
% |
|
|
14.95 |
% |
|
|
15.07 |
% |
|
|
15.11 |
% |
|
|
14.80 |
% |
|
|
0.25 |
|
|
|
0.40 |
|
Tier 1 risk-based capital |
|
12.40 |
% |
|
|
12.20 |
% |
|
|
12.30 |
% |
|
|
12.25 |
% |
|
|
11.94 |
% |
|
|
0.20 |
|
|
|
0.46 |
|
Common equity tier 1 capital |
|
12.05 |
% |
|
|
11.86 |
% |
|
|
11.95 |
% |
|
|
11.90 |
% |
|
|
11.59 |
% |
|
|
0.19 |
|
|
|
0.46 |
|
Tier 1 leverage capital ratio |
|
10.36 |
% |
|
|
10.37 |
% |
|
|
10.27 |
% |
|
|
10.22 |
% |
|
|
10.09 |
% |
|
|
-0.01 |
|
|
|
0.27 |
|
Hanmi Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital |
|
14.50 |
% |
|
|
14.27 |
% |
|
|
14.42 |
% |
|
|
14.45 |
% |
|
|
14.15 |
% |
|
|
0.23 |
|
|
|
0.35 |
|
Tier 1 risk-based capital |
|
13.44 |
% |
|
|
13.26 |
% |
|
|
13.42 |
% |
|
|
13.39 |
% |
|
|
13.06 |
% |
|
|
0.18 |
|
|
|
0.38 |
|
Common equity tier 1 capital |
|
13.44 |
% |
|
|
13.26 |
% |
|
|
13.42 |
% |
|
|
13.39 |
% |
|
|
13.06 |
% |
|
|
0.18 |
|
|
|
0.38 |
|
Tier 1 leverage capital ratio |
|
11.29 |
% |
|
|
11.32 |
% |
|
|
11.25 |
% |
|
|
11.21 |
% |
|
|
11.06 |
% |
|
|
-0.03 |
|
|
|
0.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Preliminary ratios for
March 31, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Loans 30 to 89
days past due and still accruing were 0.26% of loans at the end of
the first quarter of 2024, compared with 0.17% at the end of the
prior quarter.
Criticized loans totaled $86.0 million at the
end of the first quarter, down from $96.7 million at the end of the
fourth quarter of 2023. Special mention loans were $62.3 million at
the end of the first quarter, down from $65.3 million at December
31, 2023. Reductions in special mention loans included upgrades to
pass of $1.5 million, paydowns and payoffs of $1.4 million and
downgrades of $0.8 million. The quarter-over-quarter change also
included increases from downgrades of $0.7 million of pass
loans.
Classified loans were $23.7 million at March 31,
2024, down from $31.4 million at the end of the prior quarter. The
$7.7 million decrease was primarily driven by payoffs of $7.3
million, charge-offs of $1.9 million, and paydowns and amortization
of $2.1 million. New downgrades to classified loans of $3.6 million
partially offset the decrease.
Nonperforming loans were $14.0 million at March
31, 2024, down from $15.5 million at the end of the prior quarter.
As a percentage of the loan portfolio, nonperforming loans improved
to 0.23% at quarter-end, from 0.25% at the end of the fourth
quarter of 2023.
Nonperforming assets were $14.1 million at the
end of the first quarter of 2024, down from $15.6 million at the
end of the prior quarter. As a percentage of total assets,
nonperforming assets also improved to 0.19% at quarter-end, from
0.21% at the end of the fourth quarter of 2023.
Gross charge-offs for the first quarter of 2024
were $2.1 million, compared with $1.8 million for the preceding
quarter. Recoveries of previously charged-off loans for the first
quarter of 2024 were $0.5 million, compared with $6.8 million of
recoveries for the prior quarter, which included a $6.0 million
recovery from a 2019 troubled loan relationship. As a result, there
were net charge-offs of $1.6 million for the first quarter of 2024,
compared to net recoveries of $5.0 million for the prior
quarter.
The allowance for credit losses was $68.3
million at March 31, 2024, compared with $69.5 million at December
31, 2023. Specific allowances for loans increased $1.9 million
while the allowance for quantitative and qualitative considerations
decreased $3.1 million. The ratio of the allowance for credit
losses to loans was 1.11% at the end of the first quarter, compared
with 1.12% at December 31, 2023.
|
As of or for the Three Months Ended (in
thousands) |
|
Amount Change |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Q1-24 |
|
Q1-24 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
vs. Q4-23 |
|
vs. Q1-23 |
Asset Quality Data and Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquent loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, 30 to 89 days past due and still accruing |
$ |
15,839 |
|
|
$ |
10,263 |
|
|
$ |
9,545 |
|
|
$ |
13,749 |
|
|
$ |
15,377 |
|
|
$ |
5,576 |
|
|
$ |
462 |
|
Delinquent loans to total loans |
|
0.26 |
% |
|
|
0.17 |
% |
|
|
0.16 |
% |
|
|
0.23 |
% |
|
|
0.26 |
% |
|
|
0.09 |
|
|
|
-0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Criticized loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Special mention |
$ |
62,317 |
|
|
$ |
65,314 |
|
|
$ |
76,473 |
|
|
$ |
44,632 |
|
|
$ |
64,340 |
|
|
$ |
(2,997 |
) |
|
$ |
(2,023 |
) |
Classified |
|
23,670 |
|
|
|
31,367 |
|
|
|
33,134 |
|
|
|
38,840 |
|
|
|
47,288 |
|
|
|
(7,697 |
) |
|
|
(23,618 |
) |
Total criticized loans |
$ |
85,987 |
|
|
$ |
96,681 |
|
|
$ |
109,607 |
|
|
$ |
83,472 |
|
|
$ |
111,628 |
|
|
$ |
(10,694 |
) |
|
$ |
(25,641 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
14,025 |
|
|
$ |
15,474 |
|
|
$ |
15,783 |
|
|
$ |
22,178 |
|
|
$ |
20,050 |
|
|
$ |
(1,449 |
) |
|
$ |
(6,025 |
) |
Loans 90 days or more past due and still accruing |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Nonperforming loans |
|
14,025 |
|
|
|
15,474 |
|
|
|
15,783 |
|
|
|
22,178 |
|
|
|
20,050 |
|
|
|
(1,449 |
) |
|
|
(6,025 |
) |
Other real estate owned, net |
|
117 |
|
|
|
117 |
|
|
|
117 |
|
|
|
117 |
|
|
|
117 |
|
|
|
- |
|
|
|
- |
|
Nonperforming assets* |
$ |
14,142 |
|
|
$ |
15,591 |
|
|
$ |
15,900 |
|
|
$ |
22,295 |
|
|
$ |
20,167 |
|
|
$ |
(1,449 |
) |
|
$ |
(6,025 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to assets* |
|
0.19 |
% |
|
|
0.21 |
% |
|
|
0.22 |
% |
|
|
0.30 |
% |
|
|
0.27 |
% |
|
|
-0.02 |
|
|
|
-0.08 |
|
Nonperforming loans to total loans |
|
0.23 |
% |
|
|
0.25 |
% |
|
|
0.26 |
% |
|
|
0.37 |
% |
|
|
0.34 |
% |
|
|
-0.02 |
|
|
|
-0.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Excludes repossessed personal property of $1.3 million, $1.3
million, $1.3 million, $0.8 million, and $0.6 million as of Q1-24,
Q4-23, Q3-23, Q2-23, and Q1-23, respectively |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the Three Months Ended (in
thousands) |
|
|
|
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
|
|
|
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
|
|
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
$ |
69,462 |
|
|
$ |
67,313 |
|
|
$ |
71,024 |
|
|
$ |
72,249 |
|
|
$ |
71,523 |
|
|
|
|
|
Credit loss expense (recovery) on loans |
|
404 |
|
|
|
(2,880 |
) |
|
|
5,167 |
|
|
|
514 |
|
|
|
2,181 |
|
|
|
|
|
Net loan (charge-offs) recoveries |
|
(1,596 |
) |
|
|
5,029 |
|
|
|
(8,878 |
) |
|
|
(1,739 |
) |
|
|
(1,455 |
) |
|
|
|
|
Balance at end of period |
$ |
68,270 |
|
|
$ |
69,462 |
|
|
$ |
67,313 |
|
|
$ |
71,024 |
|
|
$ |
72,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs (recoveries) to average loans (1) |
|
0.10 |
% |
|
|
-0.33 |
% |
|
|
0.60 |
% |
|
|
0.12 |
% |
|
|
0.10 |
% |
|
|
|
|
Allowance for credit losses to loans |
|
1.11 |
% |
|
|
1.12 |
% |
|
|
1.12 |
% |
|
|
1.19 |
% |
|
|
1.21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses related to off-balance sheet
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
$ |
2,474 |
|
|
$ |
2,463 |
|
|
$ |
2,476 |
|
|
$ |
3,067 |
|
|
$ |
3,115 |
|
|
|
|
|
Credit loss expense (recovery) on off-balance sheet items |
|
(177 |
) |
|
|
11 |
|
|
|
(13 |
) |
|
|
(591 |
) |
|
|
(48 |
) |
|
|
|
|
Balance at end of period |
$ |
2,297 |
|
|
$ |
2,474 |
|
|
$ |
2,463 |
|
|
$ |
2,476 |
|
|
$ |
3,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unused commitments to extend credit |
$ |
792,769 |
|
|
$ |
813,960 |
|
|
$ |
848,886 |
|
|
$ |
791,818 |
|
|
$ |
924,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate DevelopmentsOn
January 25, 2024, Hanmi’s Board of Directors declared a cash
dividend on its common stock for the 2024 first quarter of $0.25
per share. Hanmi paid the dividend on February 22, 2024, to
stockholders of record as of the close of business on February 5,
2024.
Earnings Conference
Call Hanmi
Bank will host its first quarter 2024 earnings conference call
today, April 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 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;
- 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, 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 ability of Hanmi Bank to make
distributions to Hanmi Financial Corporation, which is restricted
by certain factors, including Hanmi Bank’s retained earnings, net
income, prior distributions made, and certain other financial
tests;
- strategic transactions we may enter
into;
- the adequacy of and changes in the
methodology for computing our allowance for credit losses;
- our credit quality and the effect
of credit quality on our credit losses expense and allowance for
credit losses;
- changes in the financial
performance and/or condition of our borrowers and the ability of
our borrowers to perform under the terms of their loans and other
terms of credit agreements;
- our ability to control expenses;
and
- cyber security and fraud risks
against our information technology and those of our third-party
providers and vendors.
In addition, we set forth certain risks in our
reports filed with the U.S. Securities and Exchange Commission,
including, Item 1A of our Annual Report on Form 10-K for the year
ended December 31, 2023, our Quarterly Reports on Form 10-Q, and
Current Reports on Form 8-K that we will file hereafter, which
could cause actual results to differ from those projected. We
undertake no obligation to update such forward-looking statements
except as required by law.
Investor Contacts:Romolo (Ron) SantarosaSenior
Executive Vice President & Chief Financial
Officer213-427-5636
Lisa FortunaInvestor RelationsFinancial Profiles,
Inc.lfortuna@finprofiles.com310-622-8251
Hanmi Financial Corporation and
SubsidiariesConsolidated Balance Sheets
(Unaudited)(Dollars in thousands)
|
March 31, |
|
December 31, |
|
Percentage |
|
March 31, |
|
Percentage |
|
2024 |
|
2023 |
|
Change |
|
2023 |
|
Change |
Assets |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
256,038 |
|
|
$ |
302,324 |
|
|
-15.3 |
% |
|
$ |
386,201 |
|
|
-33.7 |
% |
Securities available for sale, at fair value |
|
872,190 |
|
|
|
865,739 |
|
|
0.7 |
% |
|
|
878,701 |
|
|
-0.7 |
% |
Loans held for sale, at the lower of cost or fair value |
|
3,999 |
|
|
|
12,013 |
|
|
-66.7 |
% |
|
|
3,652 |
|
|
9.5 |
% |
Loans receivable, net of allowance for credit losses |
|
6,109,570 |
|
|
|
6,112,972 |
|
|
-0.1 |
% |
|
|
5,908,209 |
|
|
3.4 |
% |
Accrued interest receivable |
|
23,032 |
|
|
|
23,371 |
|
|
-1.5 |
% |
|
|
19,004 |
|
|
21.2 |
% |
Premises and equipment, net |
|
21,952 |
|
|
|
21,959 |
|
|
-0.0 |
% |
|
|
22,625 |
|
|
-3.0 |
% |
Customers' liability on acceptances |
|
161 |
|
|
|
625 |
|
|
-74.2 |
% |
|
|
41 |
|
|
292.7 |
% |
Servicing assets |
|
6,890 |
|
|
|
7,070 |
|
|
-2.5 |
% |
|
|
7,541 |
|
|
-8.6 |
% |
Goodwill and other intangible assets, net |
|
11,074 |
|
|
|
11,099 |
|
|
-0.2 |
% |
|
|
11,193 |
|
|
-1.1 |
% |
Federal Home Loan Bank ("FHLB") stock, at cost |
|
16,385 |
|
|
|
16,385 |
|
|
0.0 |
% |
|
|
16,385 |
|
|
0.0 |
% |
Bank-owned life insurance |
|
56,639 |
|
|
|
56,335 |
|
|
0.5 |
% |
|
|
55,814 |
|
|
1.5 |
% |
Prepaid expenses and other assets |
|
134,116 |
|
|
|
140,449 |
|
|
-4.5 |
% |
|
|
124,764 |
|
|
7.5 |
% |
Total assets |
$ |
7,512,046 |
|
|
$ |
7,570,341 |
|
|
-0.8 |
% |
|
$ |
7,434,130 |
|
|
1.0 |
% |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
1,933,060 |
|
|
$ |
2,003,596 |
|
|
-3.5 |
% |
|
$ |
2,334,083 |
|
|
-17.2 |
% |
Interest-bearing |
|
4,443,000 |
|
|
|
4,276,978 |
|
|
3.9 |
% |
|
|
3,866,955 |
|
|
14.9 |
% |
Total deposits |
|
6,376,060 |
|
|
|
6,280,574 |
|
|
1.5 |
% |
|
|
6,201,038 |
|
|
2.8 |
% |
Accrued interest payable |
|
38,007 |
|
|
|
39,306 |
|
|
-3.3 |
% |
|
|
20,512 |
|
|
85.3 |
% |
Bank's liability on acceptances |
|
161 |
|
|
|
625 |
|
|
-74.2 |
% |
|
|
41 |
|
|
292.7 |
% |
Borrowings |
|
172,500 |
|
|
|
325,000 |
|
|
-46.9 |
% |
|
|
350,000 |
|
|
-50.7 |
% |
Subordinated debentures |
|
130,165 |
|
|
|
130,012 |
|
|
0.1 |
% |
|
|
129,558 |
|
|
0.5 |
% |
Accrued expenses and other liabilities |
|
92,053 |
|
|
|
92,933 |
|
|
-0.9 |
% |
|
|
70,816 |
|
|
30.0 |
% |
Total liabilities |
|
6,808,946 |
|
|
|
6,868,450 |
|
|
-0.9 |
% |
|
|
6,771,965 |
|
|
0.5 |
% |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
Common stock |
|
34 |
|
|
|
34 |
|
|
0.0 |
% |
|
|
33 |
|
|
3.0 |
% |
Additional paid-in capital |
|
587,687 |
|
|
|
586,912 |
|
|
0.1 |
% |
|
|
584,884 |
|
|
0.5 |
% |
Accumulated other comprehensive income |
|
(76,890 |
) |
|
|
(71,928 |
) |
|
-6.9 |
% |
|
|
(79,059 |
) |
|
2.7 |
% |
Retained earnings |
|
326,526 |
|
|
|
319,048 |
|
|
2.3 |
% |
|
|
283,910 |
|
|
15.0 |
% |
Less treasury stock |
|
(134,257 |
) |
|
|
(132,175 |
) |
|
-1.6 |
% |
|
|
(127,603 |
) |
|
-5.2 |
% |
Total stockholders' equity |
|
703,100 |
|
|
|
701,891 |
|
|
0.2 |
% |
|
|
662,165 |
|
|
6.2 |
% |
Total liabilities and stockholders' equity |
$ |
7,512,046 |
|
|
$ |
7,570,341 |
|
|
-0.8 |
% |
|
$ |
7,434,130 |
|
|
1.0 |
% |
|
|
|
|
|
|
|
|
|
|
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 |
|
2024 |
|
2023 |
|
Change |
|
2023 |
|
Change |
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
Interest and fees on loans receivable |
$ |
91,674 |
|
$ |
89,922 |
|
|
1.9 |
% |
|
$ |
80,923 |
|
13.3 |
% |
Interest on securities |
|
4,955 |
|
|
4,583 |
|
|
8.1 |
% |
|
|
4,025 |
|
23.1 |
% |
Dividends on FHLB stock |
|
361 |
|
|
341 |
|
|
5.9 |
% |
|
|
289 |
|
24.9 |
% |
Interest on deposits in other banks |
|
2,604 |
|
|
2,337 |
|
|
11.4 |
% |
|
|
2,066 |
|
26.0 |
% |
Total interest and dividend income |
|
99,594 |
|
|
97,183 |
|
|
2.5 |
% |
|
|
87,303 |
|
14.1 |
% |
Interest expense: |
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
45,638 |
|
|
40,277 |
|
|
13.3 |
% |
|
|
25,498 |
|
79.0 |
% |
Interest on borrowings |
|
1,655 |
|
|
2,112 |
|
|
-21.6 |
% |
|
|
2,369 |
|
-30.1 |
% |
Interest on subordinated debentures |
|
1,646 |
|
|
1,654 |
|
|
-0.5 |
% |
|
|
1,583 |
|
4.0 |
% |
Total interest expense |
|
48,939 |
|
|
44,043 |
|
|
11.1 |
% |
|
|
29,450 |
|
66.2 |
% |
Net interest income before credit loss expense |
|
50,655 |
|
|
53,140 |
|
|
-4.7 |
% |
|
|
57,853 |
|
-12.4 |
% |
Credit loss expense (recovery) |
|
227 |
|
|
(2,870 |
) |
|
-107.9 |
% |
|
|
2,133 |
|
-89.4 |
% |
Net interest income after credit loss expense |
|
50,428 |
|
|
56,010 |
|
|
-10.0 |
% |
|
|
55,720 |
|
-9.5 |
% |
Noninterest income: |
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
2,450 |
|
|
2,391 |
|
|
2.5 |
% |
|
|
2,579 |
|
-5.0 |
% |
Trade finance and other service charges and fees |
|
1,414 |
|
|
1,245 |
|
|
13.6 |
% |
|
|
1,258 |
|
12.4 |
% |
Gain on sale of Small Business Administration ("SBA") loans |
|
1,482 |
|
|
1,448 |
|
|
2.3 |
% |
|
|
1,869 |
|
-20.7 |
% |
Other operating income |
|
2,387 |
|
|
1,596 |
|
|
49.6 |
% |
|
|
2,630 |
|
-9.2 |
% |
Total noninterest income |
|
7,733 |
|
|
6,680 |
|
|
15.8 |
% |
|
|
8,336 |
|
-7.2 |
% |
Noninterest expense: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
21,585 |
|
|
20,062 |
|
|
7.6 |
% |
|
|
20,610 |
|
4.7 |
% |
Occupancy and equipment |
|
4,537 |
|
|
4,604 |
|
|
-1.5 |
% |
|
|
4,412 |
|
2.8 |
% |
Data processing |
|
3,551 |
|
|
3,487 |
|
|
1.8 |
% |
|
|
3,253 |
|
9.2 |
% |
Professional fees |
|
1,893 |
|
|
1,977 |
|
|
-4.2 |
% |
|
|
1,335 |
|
41.8 |
% |
Supplies and communications |
|
601 |
|
|
613 |
|
|
-2.0 |
% |
|
|
676 |
|
-11.1 |
% |
Advertising and promotion |
|
907 |
|
|
990 |
|
|
-8.4 |
% |
|
|
833 |
|
8.9 |
% |
Other operating expenses |
|
3,371 |
|
|
3,478 |
|
|
-3.1 |
% |
|
|
1,672 |
|
101.6 |
% |
Total noninterest expense |
|
36,445 |
|
|
35,211 |
|
|
3.5 |
% |
|
|
32,791 |
|
11.1 |
% |
Income before tax |
|
21,716 |
|
|
27,479 |
|
|
-21.0 |
% |
|
|
31,265 |
|
-30.5 |
% |
Income tax expense |
|
6,552 |
|
|
8,846 |
|
|
-25.9 |
% |
|
|
9,274 |
|
-29.4 |
% |
Net income |
$ |
15,164 |
|
$ |
18,633 |
|
|
-18.6 |
% |
|
$ |
21,991 |
|
-31.0 |
% |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share: |
$ |
0.50 |
|
$ |
0.61 |
|
|
|
|
$ |
0.72 |
|
|
Diluted earnings per share: |
$ |
0.50 |
|
$ |
0.61 |
|
|
|
|
$ |
0.72 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
30,119,646 |
|
|
30,189,578 |
|
|
|
|
|
30,347,325 |
|
|
Diluted |
|
30,119,646 |
|
|
30,251,315 |
|
|
|
|
|
30,430,745 |
|
|
Common shares outstanding |
|
30,276,358 |
|
|
30,368,655 |
|
|
|
|
|
30,555,287 |
|
|
|
|
|
|
|
|
|
|
|
|
Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate
Paid (Unaudited)(Dollars in thousands)
|
Three Months Ended |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
|
|
Interest |
Average |
|
|
|
Interest |
Average |
|
|
|
Interest |
Average |
|
Average |
|
Income / |
Yield / |
|
Average |
|
Income / |
Yield / |
|
Average |
|
Income / |
Yield / |
|
Balance |
|
Expense |
Rate |
|
Balance |
|
Expense |
Rate |
|
Balance |
|
Expense |
Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable (1) |
$ |
6,137,888 |
|
|
$ |
91,674 |
6.00 |
% |
|
$ |
6,071,644 |
|
|
$ |
89,922 |
5.88 |
% |
|
$ |
5,944,399 |
|
|
$ |
80,923 |
5.51 |
% |
Securities (2) |
|
969,520 |
|
|
|
4,955 |
2.07 |
% |
|
|
961,551 |
|
|
|
4,582 |
1.93 |
% |
|
|
980,712 |
|
|
|
4,025 |
1.67 |
% |
FHLB stock |
|
16,385 |
|
|
|
361 |
8.87 |
% |
|
|
16,385 |
|
|
|
341 |
8.25 |
% |
|
|
16,385 |
|
|
|
289 |
7.16 |
% |
Interest-bearing deposits in other banks |
|
201,724 |
|
|
|
2,604 |
5.19 |
% |
|
|
181,140 |
|
|
|
2,338 |
5.12 |
% |
|
|
192,902 |
|
|
|
2,066 |
4.34 |
% |
Total interest-earning assets |
|
7,325,517 |
|
|
|
99,594 |
5.47 |
% |
|
|
7,230,720 |
|
|
|
97,183 |
5.34 |
% |
|
|
7,134,398 |
|
|
|
87,303 |
4.96 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
58,382 |
|
|
|
|
|
|
61,146 |
|
|
|
|
|
|
65,088 |
|
|
|
|
Allowance for credit losses |
|
(69,106 |
) |
|
|
|
|
|
(68,319 |
) |
|
|
|
|
|
(71,452 |
) |
|
|
|
Other assets |
|
244,700 |
|
|
|
|
|
|
251,660 |
|
|
|
|
|
|
239,121 |
|
|
|
|
Total assets |
$ |
7,559,493 |
|
|
|
|
|
$ |
7,475,207 |
|
|
|
|
|
$ |
7,367,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand: interest-bearing |
$ |
86,401 |
|
|
$ |
30 |
0.14 |
% |
|
$ |
86,679 |
|
|
$ |
29 |
0.13 |
% |
|
$ |
109,391 |
|
|
$ |
29 |
0.11 |
% |
Money market and savings |
|
1,815,085 |
|
|
|
16,553 |
3.67 |
% |
|
|
1,669,973 |
|
|
|
14,379 |
3.42 |
% |
|
|
1,453,569 |
|
|
|
7,315 |
2.04 |
% |
Time deposits |
|
2,507,830 |
|
|
|
29,055 |
4.66 |
% |
|
|
2,417,803 |
|
|
|
25,869 |
4.24 |
% |
|
|
2,223,615 |
|
|
|
18,154 |
3.31 |
% |
Total interest-bearing deposits |
|
4,409,316 |
|
|
|
45,638 |
4.16 |
% |
|
|
4,174,455 |
|
|
|
40,277 |
3.83 |
% |
|
|
3,786,575 |
|
|
|
25,498 |
2.73 |
% |
Borrowings |
|
162,418 |
|
|
|
1,655 |
4.10 |
% |
|
|
205,951 |
|
|
|
2,113 |
4.07 |
% |
|
|
268,056 |
|
|
|
2,369 |
3.58 |
% |
Subordinated debentures |
|
130,088 |
|
|
|
1,646 |
5.06 |
% |
|
|
129,933 |
|
|
|
1,653 |
5.09 |
% |
|
|
129,483 |
|
|
|
1,583 |
4.89 |
% |
Total interest-bearing liabilities |
|
4,701,822 |
|
|
|
48,939 |
4.19 |
% |
|
|
4,510,339 |
|
|
|
44,043 |
3.88 |
% |
|
|
4,184,114 |
|
|
|
29,450 |
2.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities and equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits: noninterest-bearing |
|
1,921,189 |
|
|
|
|
|
|
2,025,212 |
|
|
|
|
|
|
2,324,413 |
|
|
|
|
Other liabilities |
|
164,524 |
|
|
|
|
|
|
177,321 |
|
|
|
|
|
|
127,112 |
|
|
|
|
Stockholders' equity |
|
771,958 |
|
|
|
|
|
|
762,335 |
|
|
|
|
|
|
731,516 |
|
|
|
|
Total liabilities and stockholders' equity |
$ |
7,559,493 |
|
|
|
|
|
$ |
7,475,207 |
|
|
|
|
|
$ |
7,367,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (tax equivalent basis) |
|
|
$ |
50,655 |
|
|
|
|
$ |
53,140 |
|
|
|
|
$ |
57,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of deposits |
|
|
|
2.90 |
% |
|
|
|
|
2.58 |
% |
|
|
|
|
1.69 |
% |
Net interest spread (taxable equivalent
basis) |
|
|
|
1.28 |
% |
|
|
|
|
1.47 |
% |
|
|
|
|
2.10 |
% |
Net interest margin (taxable equivalent
basis) |
|
|
|
2.78 |
% |
|
|
|
|
2.92 |
% |
|
|
|
|
3.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
Assets |
$ |
7,512,046 |
|
|
$ |
7,570,341 |
|
|
$ |
7,350,140 |
|
|
$ |
7,344,924 |
|
|
$ |
7,434,130 |
|
Less goodwill and other intangible assets |
|
(11,074 |
) |
|
|
(11,099 |
) |
|
|
(11,131 |
) |
|
|
(11,162 |
) |
|
|
(11,193 |
) |
Tangible assets |
$ |
7,500,972 |
|
|
$ |
7,559,242 |
|
|
$ |
7,339,009 |
|
|
$ |
7,333,762 |
|
|
$ |
7,422,937 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity (1) |
$ |
703,100 |
|
|
$ |
701,891 |
|
|
$ |
663,359 |
|
|
$ |
668,560 |
|
|
$ |
662,165 |
|
Less goodwill and other intangible assets |
|
(11,074 |
) |
|
|
(11,099 |
) |
|
|
(11,131 |
) |
|
|
(11,162 |
) |
|
|
(11,193 |
) |
Tangible stockholders' equity (1) |
$ |
692,026 |
|
|
$ |
690,792 |
|
|
$ |
652,228 |
|
|
$ |
657,398 |
|
|
$ |
650,972 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity to assets |
|
9.36 |
% |
|
|
9.27 |
% |
|
|
9.03 |
% |
|
|
9.10 |
% |
|
|
8.91 |
% |
Tangible common equity to tangible assets (1) |
|
9.23 |
% |
|
|
9.14 |
% |
|
|
8.89 |
% |
|
|
8.96 |
% |
|
|
8.77 |
% |
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
30,276,358 |
|
|
|
30,368,655 |
|
|
|
30,410,582 |
|
|
|
30,485,788 |
|
|
|
30,555,287 |
|
Tangible common equity per common share |
$ |
22.86 |
|
|
$ |
22.75 |
|
|
$ |
21.45 |
|
|
$ |
21.56 |
|
|
$ |
21.30 |
|
|
|
|
|
|
|
|
|
|
|
(1) There were no preferred
shares outstanding at the periods indicated. |
|
|
|
|
|
|
|
|
|
|
Hanmi Financial (NASDAQ:HAFC)
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