Hanmi Reports 2025 Third Quarter Results

Core Insights - Hanmi Financial Corporation reported a strong financial performance for Q3 2025, with net income increasing by 45.9% to $22.1 million, or $0.73 per diluted share, compared to $15.1 million, or $0.50 per diluted share in Q2 2025 [2][7][24] - The return on average assets improved to 1.12% and return on average equity rose to 10.69%, reflecting enhanced profitability metrics [2][8] - The company experienced significant loan growth, with loan production reaching $571 million, a 73% increase from the previous quarter, driven primarily by commercial loans [3][22] Financial Performance - Net interest income for Q3 2025 was $61.1 million, up 6.9% from $57.1 million in Q2 2025, with a net interest margin of 3.22%, an increase of 15 basis points [9][13] - Preprovision net revenue increased by 16.4% quarter-over-quarter, attributed to a 6.9% rise in net interest income and a 22.4% increase in noninterest income [7][16] - Noninterest income reached $9.9 million, up 22.4% from the previous quarter, driven by gains from residential mortgage loans and bank-owned life insurance [16][17] Asset Quality - Credit loss expense decreased to $2.1 million from $7.6 million in Q2 2025, indicating improved asset quality [15] - Nonperforming assets fell to $21.4 million, or 0.27% of loans, down 17.7% from the previous quarter, while criticized loans declined by 2.6% [7][19] Loan and Deposit Growth - Total loans receivable increased to $6.53 billion, a 3.5% rise from the end of Q2 2025, with a loan production of $570.8 million at a weighted average interest rate of 6.91% [7][24] - Total deposits reached $6.77 billion, up 0.6% from the previous quarter, with noninterest-bearing demand deposits comprising 30.8% of total deposits [24][25] Capital Position - The company maintained a strong capital position with a tangible common equity to tangible assets ratio of 9.80% [7][26] - Stockholders' equity increased to $779.6 million, reflecting net income and share repurchases during the quarter [25][26]