Financial Data and Key Metrics Changes - Net income for Q1 2025 was $17.7 million, or $0.58 per diluted share, representing an increase of 17% and 16% respectively compared to Q1 2024 [11] - Return on average assets was 0.94%, and return on average equity was 8.92% [11] - Net interest margin expanded by 11 basis points to 3.02%, driven by lower funding costs [12] - Total loans grew to $6.28 billion, a 0.5% increase on a sequential basis [12] - Non-interest income increased by 5% primarily due to the sale of SBA loans [13] - Deposits grew by 3% in Q1, reflecting new commercial accounts and contributions from new branches [13] - Efficiency ratio improved to 55.69%, the best quarterly performance since Q4 2023 [14] Business Line Data and Key Metrics Changes - First quarter loan production was $346 million, up 2% from the prior quarter [24] - SBA loan production increased by $6 million to $55 million, exceeding quarterly targets [27] - CNI production decreased by 30% to $42 million [28] - Residential mortgage loan production was $55 million, up 37% from the previous quarter [28] - USKC loan portfolio remained stable at approximately 15% of total loans [15] Market Data and Key Metrics Changes - Non-interest-bearing demand deposits increased by 7% over the past year, representing 31.2% of total deposits [13] - Deposits from Corporate Korea clients increased significantly, contributing to a 166% increase compared to the previous quarter [31] - The new branch in Duluth, Georgia, has seen strong production in its first month [18] Company Strategy and Development Direction - The company aims to generate loan growth in the low to mid single-digit range while reducing CRE as a percentage of the portfolio [20] - Plans to hire additional banking talent to expand CNI business and increase core deposit growth [21] - Focus on maintaining strong asset quality through disciplined credit administration practices [22] - The company is well-positioned to expand its reach among Korean companies looking to establish or expand in the U.S. [15] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the current level of economic uncertainty but remains focused on delivering personalized, relationship-driven banking [41] - The company is optimistic about the long-term opportunities ahead, despite potential softening in loan demand due to tariffs and economic uncertainty [47] Other Important Information - The allowance for credit losses as a percentage of loans remained stable at 1.12% [16] - The company repurchased 50,000 shares at an average price of $22.49 during the quarter [39] Q&A Session Summary Question: How is the pipeline looking and any potential tariff impacts? - The second quarter pipeline looks healthy, but loan demand may soften in the latter half of the year due to tariffs and economic uncertainty [47] Question: How should expenses be modeled for the rest of the year? - Anticipated 3% to 4% increase in salaries and benefits in Q2, with other expenses behaving in line with inflation [51] Question: Should elevated share repurchases be expected? - The board reviews dividends and share repurchases each quarter, with a history of repurchases at varying amounts [55] Question: Can you provide details on margin and deposit rates? - March CDs were at 4.1%, with expectations for continued margin expansion but at a slower pace [60][62] Question: What is the status of the syndicated office loan? - The syndicated loan is $200 million, with the company holding a 10% interest [76] Question: How is the overall office CRE portfolio performing? - Over $200 million in office loans are maturing in 2025, with no current issues anticipated [79] Question: What are the expectations for SBA production going forward? - Guidance for quarterly SBA production is $42 to $45 million, with a solid pipeline expected [90]

Financial Performance - Net income for Q1 2025 was $17.7 million, or $0.58 per diluted share, unchanged from Q4 2024[3]. - Net income slightly decreased by 0.1% to $17,672 million, while year-over-year growth was 16.5%[48]. - Basic earnings per share remained stable at $0.59, with diluted earnings per share also at $0.58[48]. - The effective tax rate for Q1 2025 was 29.6%, compared to 30.1% in Q4 2024[18]. - Income tax expense was $7,441,000, a decrease from $7,632,000 in the previous quarter[58]. Asset and Deposit Growth - Total assets increased by 0.7%, or $51.1 million, to $7.73 billion as of March 31, 2025, compared to $7.68 billion at December 31, 2024[19]. - Total deposits reached $6.62 billion, up 2.9% from Q4 2024, with noninterest-bearing demand deposits comprising 31.2% of total deposits[8]. - Deposits increased by $183.7 million, or 2.9%, to $6.62 billion at the end of Q1 2025, driven by a $140.4 million increase in money market and savings deposits[24]. - Total deposits increased by 2.9% to $6,619,475,000 from $6,435,776,000 in December 2024[46]. Loan Performance - Loans receivable increased to $6.28 billion, a 0.5% rise from Q4 2024, with loan production for Q1 at $345.9 million[8]. - New loan production for Q1 2025 was $345.9 million with an average rate of 7.35%, while payoffs were $125.1 million at an average rate of 6.40%[22]. - Commercial real estate loans accounted for 63.1% of the loan portfolio as of March 31, 2025[22]. - Loans held-for-sale increased to $11.8 million at March 31, 2025, up from $8.6 million at December 31, 2024[20]. - Loans receivable, before allowance for credit losses, rose to $6.28 billion at March 31, 2025, up from $6.25 billion at December 31, 2024[19]. Credit Quality - Credit loss expense for Q1 was $2.7 million, up from $0.9 million in the prior quarter, with an allowance for credit losses of $70.6 million[8]. - Nonperforming loans stood at $35.6 million, or 0.57% of total loans, as of March 31, 2025[8]. - Nonperforming loans rose to $35.6 million at March 31, 2025, up from $14.3 million at the end of the prior quarter, primarily due to additions of $26.1 million[32]. - The allowance for credit losses was $70.6 million at March 31, 2025, with a ratio of allowance to loans remaining stable at 1.12%[35]. - Gross charge-offs for Q1 2025 were $3.2 million, compared to $3.4 million in the preceding quarter, resulting in net charge-offs of $1.9 million[34]. Efficiency and Profitability - The efficiency ratio improved to 55.69%, down from 56.79% in Q4 2024, marking the best quarterly efficiency since Q4 2023[9]. - The efficiency ratio improved to 55.7% in Q1-25 from 56.8% in Q4-24[17]. - Preprovision net revenues reached $27,834,000, reflecting a 5.9% increase from the previous quarter and a 26.8% increase year-over-year[58]. - Net interest income for Q1 was $55.1 million, reflecting a 3.1% increase from $53.4 million in Q4 2024[10]. - Net interest income before credit loss expense increased by 3.1% to $55,092 million[48]. Capital and Equity - Stockholders' equity increased to $751.5 million as of March 31, 2025, up $19.3 million from $732.2 million at December 31, 2024, driven by $9.5 million in net income and a decrease in unrealized losses[26]. - The preliminary common equity tier 1 capital ratio was 12.13% at March 31, 2025, compared to 12.11% at the end of the prior quarter, indicating a slight improvement in capital strength[27]. - The tangible common stockholders' equity was $740.5 million, or 9.59% of tangible assets, up from $721.1 million, or 9.41% of tangible assets, at the end of the prior quarter[26]. - The total stockholders' equity increased by 2.6% to $751,485,000 as of March 31, 2025, from $732,174,000 in December 2024[46]. Operational Highlights - The company opened a new branch in the Atlanta region, contributing to deposit growth and overall positive momentum[4]. - The company operates 32 full-service branches and eight loan production offices across multiple states, focusing on real estate and commercial lending[41]. - Average interest-earning assets were $7,383,443 thousand, reflecting a 0.8% increase from Q4-24[12]. - Average interest-bearing liabilities increased to $4,772,101 thousand, a 3.0% increase from Q4-24[14]. - Average interest-bearing deposits rose to $4,461,939 thousand, a 2.3% increase from Q4-24[12].

Core Viewpoint - Hanmi Financial Corporation reported stable financial performance in Q1 2025, with net income remaining unchanged from the previous quarter, reflecting solid operating results across all business lines and effective expense management [2][3][7]. Financial Performance - Net income for Q1 2025 was $17.7 million, or $0.58 per diluted share, consistent with Q4 2024 [2][7]. - Return on average assets increased to 0.94% from 0.93% in Q4 2024, while return on average equity rose to 8.92% from 8.89% [2][8]. - Net interest income increased by 3.1% to $55.1 million compared to $53.4 million in Q4 2024, driven by lower funding costs and an expanding net interest margin [9][10]. Loan and Deposit Growth - Loans receivable reached $6.28 billion, up 0.5% from Q4 2024, with loan production for Q1 at $345.9 million [7][19]. - Deposits increased by 2.9% to $6.62 billion, supported by new commercial accounts and contributions from newly opened branches [3][7]. - Noninterest-bearing demand deposits constituted 31.2% of total deposits as of March 31, 2025 [7]. Credit Quality and Expenses - Credit loss expense for Q1 was $2.7 million, up from $0.9 million in the previous quarter, with an allowance for credit losses of $70.6 million, or 1.12% of loans [14][19]. - Noninterest expense rose to $35.0 million, primarily due to seasonal increases in salaries and benefits, although overall operating expenses showed a decrease when excluding one-time gains from the previous quarter [15][17]. Noninterest Income - Noninterest income increased by 5.0% to $7.7 million, driven by a significant rise in gains from the sale of SBA loans, which totaled $2.0 million for Q1 2025 [15][16]. - The volume of SBA loans sold increased to $32.2 million from $21.6 million in the previous quarter [15]. Efficiency and Margin - The efficiency ratio improved to 55.7% from 56.8% in Q4 2024, indicating better cost management relative to income [15][17]. - The net interest margin increased by 11 basis points to 3.02%, reflecting a decrease in the cost of interest-bearing deposits [9][12].

Wall Street expects a year-over-year increase in earnings on higher revenues when Hanmi Financial (HAFC) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on April 22, 2025, might help the stock move higher if these key numbers are better than e ...

LOS ANGELES, April 11, 2025 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ:HAFC) ("Hanmi"), the holding company for Hanmi Bank, today announced that it will report first quarter 2025 financial results after the market close on Tuesday, April 22, 2025. Management will host a conference call that same day, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss the results. Investment professionals and all current and prospective shareholders are invited to access the live call on April 22 by d ...

Investors might want to bet on Hanmi Financial (HAFC) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing e ...

Company Overview - Hanmi Financial Corporation is headquartered in Los Angeles, California, and owns Hanmi Bank, which serves multi-ethnic communities through a network of 32 full-service branches, five loan production offices, and three loan centers across several states including California, Colorado, Georgia, Illinois, New Jersey, New York, Texas, Virginia, and Washington [3] - Hanmi Bank specializes in real estate, commercial, SBA, and trade finance lending to small and middle market businesses [3] Upcoming Events - Hanmi Financial Corporation will participate in the Piper Sandler Western Bank Forum on March 10 and 11, 2025, in Marina del Rey, California [1] - Anthony Kim, Chief Banking Officer, and Ron Santarosa, Chief Financial Officer, will host one-on-one and small group meetings during the event [1] Investor Relations - A copy of the presentation for meetings with institutional investors will be available in the Investor Relations section of the company's website [2]

Core Viewpoint - Hanmi Financial Corporation has appointed Christine P. Ball to its Board of Directors, enhancing the board's expertise in banking and risk management [1][2]. Group 1: Appointment Details - Christine P. Ball's appointment is effective March 1, 2025, increasing the total number of directors to eleven [1]. - She has been assigned to the Risk, Compliance and Planning Committee, as well as the Loan and Credit Policy Committee and Asset Liability Management Committee [2]. Group 2: Background of Christine P. Ball - Ms. Ball has over 20 years of experience in corporate, commercial, and private banking [3][6]. - Her most recent role was Senior Vice President and Deputy Chief Credit Officer at City National Bank in Los Angeles, where she worked since 2013 [3][6]. - Prior to City National Bank, she held senior positions at Wells Fargo Bank and Wachovia Bank [3]. Group 3: Company Overview - Hanmi Financial Corporation is headquartered in Los Angeles, California, and owns Hanmi Bank, which operates 32 full-service branches and additional loan production offices across several states [4]. - The bank specializes in real estate, commercial, SBA, and trade finance lending to small and middle-market businesses [4].

Capital Ratios and Requirements - As of December 31, 2024, the Company's total risk-based capital ratio was 15.24%, exceeding the minimum requirements for being deemed "well-capitalized" [92] - The Bank's Tier 1 risk-based capital ratio was 13.36%, and its Common Equity Tier 1 capital ratio was also 13.36%, both surpassing regulatory requirements [92] - The Bank's capital conservation buffer was 6.43% as of December 31, 2024, indicating a strong capital position [92] - The Company and the Bank believe they met all applicable capital requirements as of December 31, 2024, but may face additional regulatory capital expectations [92] - The Bank is required to maintain a Common Equity Tier 1 capital ratio of at least 6.50% to be considered well-capitalized under prompt corrective action standards [104] Regulatory and Compliance Issues - The FDIC insures customer deposits up to $250,000 per depositor, which is crucial for maintaining depositor confidence [100] - Effective January 1, 2023, FDIC assessment rates for institutions of the Bank's size ranged from 2.5 to 32 basis points, impacting earnings [101] - The FDIC plans to implement a special assessment effective April 1, 2024, to recover losses from protecting uninsured depositors [102] - The Company's ability to pay dividends is subject to various federal and state restrictions, impacting its financial flexibility [105] - Future cash dividends from the Bank will depend on management's assessment of capital requirements and regulatory restrictions [106] - The final rule for CRA regulations will apply to banks with assets of at least $2 billion, with the majority of provisions effective from January 1, 2026 [111] - The SEC's clawback policy requires companies to recover erroneously awarded incentive-based compensation due to accounting restatements [119] - The Bank is subject to examination by the CFPB due to its asset size being below $10 billion [112] Community and Performance Assessment - The Bank was rated "Satisfactory" in meeting community credit needs under the CRA at its most recent examination [110] - The Bank's performance is influenced by the Federal Reserve's monetary policies, which affect interest rates on loans and deposits [114] Financial Position and Investments - As of December 31, 2024, the total borrowing capacity available based on pledged collateral was $1.69 billion, compared to $1.54 billion as of December 31, 2023 [113] - The Bank's investment in FHLBSF capital stock was $16.4 million as of December 31, 2024 [113] - The Bank's compliance with the FHLBSF's stock ownership requirement was confirmed as of December 31, 2024 [113] - The Company was in compliance with California board diversity requirements as of December 31, 2024 [117] Brokered Deposits - The FDIC's proposed rule on brokered deposits aims to significantly overhaul the 2020 regulations [120]

Company Overview - Hanmi Financial (HAFC) is based in Los Angeles and operates in the Finance sector, with a year-to-date share price change of 2.84% [3] - The company currently pays a dividend of $0.27 per share, resulting in a dividend yield of 4.45%, which is significantly higher than the Banks - West industry's yield of 2.77% and the S&P 500's yield of 1.53% [3] Dividend Performance - The annualized dividend of Hanmi Financial is $1.08, reflecting an 8% increase from the previous year [4] - Over the past five years, the company has increased its dividend two times year-over-year, achieving an average annual increase of 22.92% [4] - The current payout ratio for Hanmi Financial is 49%, indicating that the company distributes 49% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The earnings growth outlook for Hanmi Financial is strong, with the Zacks Consensus Estimate for 2025 projected at $2.60 per share, representing a year-over-year growth rate of 26.83% [5] Investment Appeal - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - While high-growth firms typically do not provide dividends, established companies like Hanmi Financial are viewed as attractive dividend options [7] - Hanmi Financial is recognized as a compelling investment opportunity, holding a Zacks Rank of 1 (Strong Buy) [7]