Hanmi Financial Corporation reported its 2Q24 financial highlights, indicating a 4.7% decrease in net income to $14.5 million, or $0.48 per diluted share, compared to the prior quarter. Net interest income was $48.6 million, down 4.0% from the previous quarter, while noninterest income increased by 4.2% to $8.1 million. Additionally, noninterest expense decreased by 3.2% to $35.3 million.
The loan portfolio showed consistency with loans receivable at $6.18 billion, while deposits decreased by 0.7% to $6.33 billion from the prior quarter. Noninterest-bearing demand deposits represented 31.0% of total deposits.
Hanmi Financial Corporation's loan production for 2Q24 was reported at $274 million, reflecting a balanced contribution from various business lines, with a 29 basis point increase in the weighted average interest rate on new production.
The company's loan portfolio is well-diversified, with commercial real estate (CRE) representing 63% of the total portfolio, followed by commercial and industrial (C&I) at 13% and equipment finance at 9%.
Hanmi Financial Corporation's tangible common equity to tangible assets ratio was 9.19%, and the common equity tier 1 capital ratio was 12.11%, exceeding the minimum capital requirements as of June 30, 2024.
The company reported strong average loan growth, reflecting a 10% compound annual growth rate (CAGR) since 2013. Additionally, the average noninterest-bearing deposit at $1.9 billion represented 30% of average deposits at June 30, 2024, reflecting a 9% CAGR since 2013.
Following these announcements, the company's shares moved 0.1%, and are now trading at a price of $18.94. For the full picture, make sure to review Hanmi Financial's 8-K report.
