Hanmi Financial Q2 2024 – Net Income $14.5M

By Tamara Parker • Monday, July 29 15:38 • Permanent Link

Hanmi Financial Corporation released its second-quarter 2024 financial results, reporting a net income of $14.5 million, or $0.48 per diluted share. This represents a decrease of 4.7% from the prior quarter. Net interest income was $48.6 million, a 4.0% decrease from the prior quarter, while noninterest income was $8.1 million, up 4.2% from the prior quarter. Noninterest expense was $35.3 million, down 3.2% from the prior quarter, resulting in an efficiency ratio of 62.24%, compared with 62.42% for the prior quarter.

The loan portfolio of Hanmi Financial Corporation stood at $6.18 billion, consistent with the prior quarter. Loan production was $273.9 million with a weighted average interest rate of 8.31%. Furthermore, deposits were reported at $6.33 billion, down 0.7% from the prior quarter, with noninterest-bearing demand deposits representing 31.0% of total deposits.

Hanmi Financial Corporation's tangible common equity to tangible assets ratio was 9.19% at the end of the second quarter, with a common equity tier 1 capital ratio of 12.11% and a total capital ratio of 15.24%. The company also highlighted a strong average loan growth reflecting a 10% compound annual growth rate (CAGR) since 2013.

The loan portfolio was well diversified across collateral and industry types. Commercial real estate (CRE) represented 63% of the total portfolio, while commercial and industrial (C&I), excluding equipment finance agreements, represented 13%. Additionally, the company made significant progress reducing CRE concentration from 85% of the total portfolio in December 2013 to 63% in June 2024, through portfolio diversification that includes equipment finance, residential real estate, and multifamily loans.

Hanmi Financial Corporation's loan production for the second quarter of 2024 reflected a balanced contribution from nearly all business lines, with commercial real estate loan production at $87.6 million, commercial and industrial loan production at $59.0 million, equipment finance production at $42.6 million, and residential mortgage loan production at $30.2 million.

The market has reacted to these announcements by moving the company's shares -2.8% to a price of $19.94. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.