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]

Core Viewpoint - Hanmi Financial Corporation reported a decline in net income for Q2 2025, primarily due to increased credit loss expenses, despite improvements in asset quality and operational metrics [2][3][7]. Financial Performance - Net income for Q2 2025 was $15.1 million, or $0.50 per diluted share, down from $17.7 million, or $0.58 per diluted share in Q1 2025 [2][7]. - Return on average assets decreased to 0.79% from 0.94%, and return on average equity fell to 7.48% from 8.92% [2][8]. - Preprovision net revenue grew by 3.7%, driven by lower funding costs and a 3.7% increase in net interest income [3][7]. Asset Quality - Significant improvement in asset quality was noted, with criticized loans dropping 71.8% to 0.74% of total loans, and nonaccrual loans falling 26.8% to 0.41% of total loans [7][18]. - Loan delinquencies decreased to 0.17% of total loans [7]. Loan and Deposit Growth - Loans receivable increased to $6.31 billion, up 0.4% from Q1 2025, with loan production for Q2 at $329.6 million [7][29]. - Deposits rose to $6.73 billion, a 1.7% increase from the previous quarter, with noninterest-bearing demand deposits accounting for 31.3% of total deposits [7][29]. Noninterest Income and Expenses - Noninterest income increased by 4.5% to $8.1 million, primarily due to gains from the sale of SBA loans [20][21]. - Noninterest expenses rose to $36.3 million, up 3.9% sequentially, driven by increases in salaries, professional fees, and advertising [21][22]. Capital Position - The capital position remained strong, with a tangible common equity to tangible assets ratio of 9.58% and a common equity tier 1 capital ratio of 12.12% [7][24].