Hanmi Financial (US:HAFC)2025-11-07 17:45Financial Performance - Net income for Q3 2025 was $22.1 million, or $0.73 per diluted share, compared to $14.9 million, or $0.49 per diluted share in Q3 2024, driven by an $11.0 million increase in net interest income [166]. - For the nine months ended September 30, 2025, net income was $54.9 million, or $1.82 per diluted share, up from $44.5 million, or $1.47 per diluted share in the same period last year, with a $24.0 million increase in net interest income [167]. - Return on average assets for Q3 2025 was 1.12%, up from 0.79% in Q3 2024, while return on average stockholders' equity increased to 10.69% from 7.55% [168]. Loans and Deposits - Loans receivable increased by $277.2 million, or 4.5%, to $6.46 billion as of September 30, 2025, from $6.18 billion at the end of 2024 [169]. - Deposits rose to $6.77 billion at September 30, 2025, compared to $6.44 billion at December 31, 2024, with time deposits increasing by $173.4 million [171]. - The loan-to-deposit ratio was 96.5% at September 30, 2025, compared to 97.1% at December 31, 2024 [250]. Interest Income and Expense - Net interest income for Q3 2025 was $61.1 million, compared to $50.1 million in Q3 2024, reflecting a net interest margin of 3.22% versus 2.74% [175]. - The total interest-earning assets increased to $7.55 billion in Q3 2025, with an average yield of 5.54%, compared to $7.30 billion and 5.48% in Q3 2024 [175]. - The average cost of interest-bearing liabilities decreased to 3.60% for the three months ended September 30, 2025, down from 4.29% in the same period of 2024 [185]. Credit Losses - Credit loss expense for Q3 2025 was $2.1 million, a slight decrease from $2.3 million in Q3 2024, while for the nine months ended September 30, 2025, it rose to $12.5 million from $3.5 million in the same period last year [166][167]. - The company experienced a $9.0 million increase in credit loss expense for the nine months ended September 30, 2025, compared to the same period in 2024 [167]. - Nonperforming loans increased to $19.4 million, representing a 35.7% rise compared to $14.3 million at December 31, 2024 [229]. Noninterest Income and Expense - Noninterest income for the three months ended September 30, 2025, was $9.9 million, an increase of $1.4 million, primarily due to a $0.9 million increase in bank-owned life insurance income [203]. - Noninterest expense for the three months ended September 30, 2025, was $37.4 million, an increase of $2.3 million, or 6.5%, compared to $35.1 million in 2024 [208]. - For the nine months ended September 30, 2025, noninterest expense was $108.7 million, an increase of $1.9 million, or 1.8%, compared to $106.8 million for the same period in 2024 [209]. Capital and Equity - Stockholders' equity increased to $779.6 million as of September 30, 2025, up from $732.2 million at the end of 2024, driven by net income and share-based compensation [257]. - The Company’s total risk-based capital ratio was 15.05% as of September 30, 2025, reflecting strong capital adequacy [267]. - The Bank's total risk-based capital ratio was 14.28% as of September 30, 2025, indicating a "well capitalized" status under regulatory definitions [266]. Tax and Regulatory - The effective income tax rate for the nine months ended September 30, 2025, was 29.5%, compared to 29.7% for the same period in 2024 [210]. - The allowance for credit losses was $69.8 million as of September 30, 2025, down from $70.1 million at December 31, 2024 [245]. - The allowance for credit losses to loans receivable ratio was 1.07% as of September 30, 2025, compared to 1.12% at December 31, 2024 [245].