Hanmi Financial (HAFC) - 2024 Q4 - Annual Results

Financial Performance - Net income for Q4 2024 was $17.7 million, or$0.58 per diluted share, an increase of 18.8% from $14.9 million, or$0.49 per diluted share in Q3 2024[3]. - For the full year 2024, net income was $62.2 million, or$2.05 per diluted share, down from $80.0 million, or$2.62 per diluted share in 2023[4]. - Noninterest income for Q4 2024 decreased by $1,000 thousand, or 12.8$7,357 thousand compared to Q3 2024[18]. - Total noninterest income for 2024 decreased by $2,600 thousand, or 7.6$31,600 thousand from $34,200 thousand in 2023[19]. - Net income for the twelve months ended December 31, 2024, was$62,201, a decrease of 22.3% from $80,041 in the previous year[58]. - The company declared a cash dividend of$0.25 per share for the fourth quarter of 2024, payable on November 20, 2024[47]. Asset and Loan Management - Loans receivable were $6.25 billion at the end of Q4 2024, essentially unchanged from Q3 2024, with loan production of$339.0 million at a weighted average interest rate of 7.37%[7]. - Loans receivable for Q4 2024 totaled $6,103,264 thousand, a decrease of 0.1$782,587 thousand as of December 31, 2024, up from $739,975 thousand as of September 30, 2024[46]. - New loan production for the fourth quarter of 2024 was$339.0 million at an average rate of 7.37%[28]. - Commercial real estate loan production for the fourth quarter of 2024 was $146.7 million, while total new loan production for 2024 was$1.20 billion, a decrease of 7.4% from 2023[30][29]. Deposits and Funding - Deposits totaled $6.44 billion at the end of Q4 2024, up 0.5$6,435,776 thousand as of December 31, 2024, reflecting a 0.5% increase from the previous quarter and a 2.5% increase year-over-year[33]. - The loan-to-deposit ratio was 97.1% at the end of the fourth quarter of 2024[32]. - Average interest-bearing liabilities decreased to $4,632,858 thousand, a decline of 0.8$53.4 million, a 6.8% increase from $50.1 million in Q3 2024, primarily due to a decrease in interest expense on deposits[10]. - The net interest margin for Q4 2024 increased by 17 basis points to 2.91$100,113, a decrease of 0.3% from the previous quarter and an increase of 3.0% year-over-year[56]. - The net interest margin (taxable equivalent basis) was reported at 2.91% for the three months ended December 31, 2024[61]. - The average yield on loans receivable rose to 5.99% in 2024 from 5.69% in 2023, while the average yield on securities increased to 2.22% from 1.78%[62]. Credit Quality and Allowance for Losses - Nonperforming assets as a percentage of total assets decreased to 0.19%[5]. - The allowance for credit losses increased to $70.1 million, or 1.12$0.1 million in Q4 2024[7]. - Nonperforming loans decreased to $14.3 million, down from$15.5 million in the previous quarter, reflecting a reduction in charge-offs and upgrades[40]. - The allowance for credit losses was $70.1 million, with a ratio of 1.12$600 thousand to $34,500 thousand from$35,100 thousand in Q3 2024[21]. - The efficiency ratio for Q4 2024 improved to 56.8%, compared to 60.0% in Q3 2024[21]. - Noninterest expense for 2024 increased by $4,800 thousand, or 3.5$141,300 thousand from $136,500 thousand in 2023[22]. Capital and Equity - Stockholders' equity decreased to$732.2 million, down $4.5 million from the previous quarter, primarily due to a$14.6 million increase in unrealized after-tax losses on securities[33]. - The common equity tier 1 capital ratio improved to 12.11% as of December 31, 2024, compared to 11.95% at the end of the prior quarter[34]. - The tangible common stockholders' equity was $721.1 million, or 9.41$780,809 thousand as of December 31, 2024, from $747,908 thousand in the previous year[62].