Hanmi Financial (HAFC) - 2025 Q1 - Quarterly Results

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].