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Perplexity Finance

HAFC

Hanmi Financial Corporation

HAFC

NASDAQ

Market Closed

Sunday, May 25, 2025

$22.81

-$0.04

0.18%

At close: May 23, 4:00:01 PM EDT

$22.81

$0.00

After hours: 4:04:04 PM EDT

Change

-$0.04

0.18%

Financial Profile

Prev Close

$22.85

Market Cap

$689.14M

Day Range

$22.59 - $22.93

Open

$22.68

P/E Ratio

10.7

52W Range

$14.95 - $27.59

24H Volume

$2.13M

Dividend Yield

4.56%

EPS

2.13

Earnings

Report Date

Apr 22, 2025

Reported Revenue

107M

Beat +68.61%

Avg 1d Change

5.99%

Report Period

Q1 2025

Reported EPS

0.58

Beat +1.75%

Implied Move 1d

10.26%

Transcript

11m 46s

Forward looking statements are based on current plans, expectations events and financial industry trends that may affect the company's future operating results and financial position. Our actual results may differ materially from those contemplated by our forward looking statements, which involve risks and uncertainties. Discussion of the factors that could cause our actual results to differ materially from these forward looking statements can be found in our SEC filings, including our reports on Forms ten and ten Q. In particular, we direct you to the discussion of certain risk factors affecting our business contained in our earnings release, investor presentation and in our Form 10 Q. With that, I would now like to turn the call over to Bonnie Lee, Bonnie, please go ahead. Thank you, Ben. Good afternoon, everyone.

12m 36s

Me.

12m 37s

Thank you for joining us today to discuss our first quarter twenty twenty five results.

12m 42s

We are off to a good start to the year with a strong deposit growth another quarter of a margin expansion and continued disciplined expense management. Our credit quality remains strong and we saw a help increase in deposits from our USKC customers. These results reflect the strength of our relationship based banking model, a key differentiator for Hanmi in the markets we serve. Now, let me review key highlights of the first quarter. Net income was 17,700,000.0 or $0.58 per diluted share an increase of 1716% respectively compared to the first quarter of twenty twenty four. Our return on average assets was 0.94% and return on average equity was 8.92%. We achieved our third consecutive quarter of net interest margin expansion, which increased by 11 basis points to 3.02% driven by our ability to lower funding costs. Total loans grew to $6,280,000,000 or 0.5% on a linked quarter basis with a solid loan production across all of our loan categories. This is particularly notable since the first quarter is seasonally slower quarter for loan production. Non interest income grew 5% primarily due to the sale of SBA loans which provides Hanmi with the revenue diversification enhanced risk management, and capital deployment for loan growth.

14m 19s

Deposits grew by 3% in the first quarter driven by new commercial accounts and contribution from new branches. This growth reflects our success in continuing to build new relationships while deepening those with existing customers. Non interest bearing demand deposits have increased by 7% over the past year and remain solid as a percentage of total deposits at 31.2%. Our operating expenses remain well managed and this results in an efficiency ratio of a 55.69% our best quarterly performance since the fourth quarter of twenty twenty three. Turning to our USKC initiative, one of our core growth strategies. Our USKC loan portfolio remains stable at approximately 15% of our total loans, However, deposits increased significantly and now represents 15% of total deposits up from 13% at the end of twenty twenty four. Since opening our representative office in Seoul, South Korea last late last year, we have seen a growing level of interest in Hanmi's capabilities and services. Establishing a local presence has a significantly increased activity levels, delivered the visibility we had hoped for. We see growing opportunities to establish new relationships particularly among mid sized companies and believe we are well positioned to further expand our reach and strengthen our brand among Korean companies that are looking to establish or expand their footprint in The United States.

16m 1s

As we continue to execute on our strategy of diversifying and growing our loan and deposit portfolio, We maintained strong asset quality. Our asset quality reflects our focus on high quality loans along with a disciplined underwriting and credit administration. Our allowance for credit losses as a percentage percentage of loans remained stable at 1.12%. In addition to upholding our asset quality, we made progress in further expanding our geographic footprint. In March, we successfully opened a branch in Duluth, Georgia. Which is a part of the Atlanta metropolitan markets. This is our first branch in this rapidly growing market which is home to the third largest Korean community in The United States. In just the first month, we have seen strong production and are pleased with the growing momentum. The Metro Atlanta region is also a major center for Korean manufacturing investment, particularly in automobiles and clean energy. In fact, just last week, our new team there attended the World Korean Business Convention, an event that convinced Korean business community from around the world in the heart of Duluth. This was a terrific opportunity to introduce Hanmi, and our specialized USKC services to more than 15,000 attendees. Raising from local businesses to multinational corporations.

17m 34s

As we look ahead to the balance of 2025, we are continuing to focus on executing our growth strategy and our top priorities include the following. Generating loan growth in the low to mid single digit range with a focus on further expanding our C and I portfolio while reducing CRE as a percentage of the portfolio. While our current loan pipeline is solid, like all banks, we will continue to monitor the macroeconomic environment closely given the elevated level of uncertainty that currently exists. We will continue to pursue residential mortgage sales to supplement our fee revenues and manage our balance sheet.

18m 16s

We plan to hire additional banking talent to expand our C and I business in target verticals and increase our core deposit growth.

18m 26s

And finally, we will maintain strong asset quality through our disciplined credit administration practices. In summary, we delivered strong operating performance in the first quarter, reflecting solid growth and ongoing momentum from 2024. As always, we remain closely engaged with our customers to better understand how evolving market conditions are affecting their businesses. This approach ensures our team is providing exceptional service and market leading products our customers need.

18m 58s

This, combined with ongoing expense management as a quality discipline, positions us well to the drive growth and long term value to our shareholders. I'll now turn the call over to Anthony Kim our Chief Banking Officer to discuss first quarter loan production and deposit gathering in more detail.

19m 19s

Thank you, Bonnie. And thank you for joining us today. I'll begin by providing additional details on our loan production. First quarter loan production was $346,000,000 up $7,000,000 or 2% from the prior quarter with a weighted average rate of 7.35% compared to 7.37% last quarter. The increase in loan production was primarily due to increase in residential lending, SBA, and equipment finance while CRE was flat and C and I declined from the fourth quarter levels. We remain disciplined with our underwriting as we seek opportunities that meet our high quality standards in the current rate environment. CRA production was $147,000,000 flat compared to the prior quarter with continued production from our California region. The elevated interest rate environment continues to impact the traditional and refinancing activity. We remain pleased with the quality of our CRE portfolio. At origination, it had a weighted average loan to value ratio of approximately 48% and a weighted average debt service coverage ratio of 2.2 times. SVLO production increased 6,000,000 from the prior quarter 55,000,000, exceeding the high end of our quarterly target range of 40,000,000 to 45,000,000 This study production highlights the impact of our key team hires and the growth we're driving among small businesses in our markets.

20m 56s

During the quarter, we sold approximately 32,000,000 of SBA loans from our portfolio. C and I production during the first quarter was 42,000,000 a decrease of 18,000,000 or 30%. However, total commitments for our commercial lines of credit were over $1,000,000,000 in the first quarter up 6% or 22% on an annualized basis. Outstanding balances declined by 6% resulting in an utilization rate of 38% down from 43% last quarter. Residential mortgage loan production was $55,000,000 for the first quarter, up 37% from the previous quarter due to higher demand for purchase transactions as interest rates declined from the elevated levels. Residential mortgage loans represent 16% of our total loan portfolio, the same as one year ago. As Bonnie noted, during the first quarter, we sold approximately 10,000,000 of residential mortgages from our portfolio and are currently exploring additional sales contingent on market conditions. Corporate Korea continues to contribute to our total production. However, production slowed from the previous quarter due to the heightened levels of economic uncertainty and the seasonality. USKC loan balances were $932,000,000 down $5,000,000 or 0.5% from the prior quarter and represent approximately 15% of our total loan portfolio equivalent to last quarter. Turning to deposits, In the first quarter, deposits were up 3% from the previous quarter driven by new commercial accounts and contributions from new branches.

22m 46s

We continue to expand our partnership with our corporate Korea clients and saw a strong deposit production of $85,000,000 or 166% increase compared to the previous quarter. Our team is making good progress in adding new relationships that we believe can grow over time. At quarter end, at corporate Korea, deposits represented 15% of our total deposits and 17% our demand deposits. The competition of our deposit base remains stable, which reflects the success our relationship banking model. During the first quarter, our mix of non interest bearing deposits remained healthy at 31% of total bank deposits. Our credit quality also remained stable during the first quarter The provision for a credit loss expense increased from the prior quarter due to a CRE loan that was downgraded to non performing status. Although the ratio of non performing assets to total assets increased slightly, while other credit metrics were essentially flat versus the prior quarter. We are confident that the overall credit quality of our portfolio remains strong. And now I'll hand the call over to Ron Santorosa our Chief Financial Officer for more details our first quarter financial results. Ron? Thank you, Anthony, and a good afternoon to all. Beginning with net interest income, we generated a 3% quarter over quarter increase posting $55,100,000 for the first quarter of twenty twenty five.

24m 24s

Net interest margin also improved nicely to 3.02% for the first quarter up 11 basis points from the prior quarter. The growth in our net interest income and net interest margin was principally due to a decrease in deposit interest expense and a decline in deposit rates. For the first quarter of twenty twenty five, deposit interest expense declined 6.6% from the previous quarter and the average rate paid on interest bearing deposits fell 27 basis points to 3.69%. Average loans increased 1.4% for the first quarter as the average loan yield declined two basis points to 5.95%. Non interest income was $7,700,000 up 5% from the previous quarter, largely due to an increase in SBA gains.

25m 23s

Gains from SBA loan sales were $2,000,000 up 39% from the previous quarter as the volume of loans sold increased 49% to $3,200,000 while trade premiums declined 71 basis points to 7.82%. Noninterest expenses were $35,000,000 for the first quarter, up 1.3% from the previous quarter. However, our efficiency ratio improved to 55.7% on higher revenues. The quarter over quarter increase in noninterest expense was primarily due to the twenty twenty four fourth quarter $1,600,000 OREO gain. In summary, pre provision net revenues for the first quarter increased 6% sequentially, reflecting growth in net interest revenues and margin. A solid contribution from our SBA business and disciplined expense management. Credit loss expense for the first quarter was $2,700,000 including a loan loss provision of $2,400,000 and a provision for off balance sheet items of $300,000 First quarter net charge offs were $1,900,000 or 13 basis points of average loans and the allowance to loans remained constant at 1.12%. Our equity capital and capital ratios continue to be strong. During the first quarter, we repurchased 50,000 shares at an average price of $22.49 In addition, lower interest rates drove a 15.2% decrease in our negative AOCI from the prior quarter. Tangible book value per share increased 2.6% to $24.49 and our tangible equity to tangible asset ratio was 9.59%.

27m 22s

The company's preliminary common equity Tier one ratio was 12.13% and the bank's preliminary total capital ratio was 14.48%. With that, I will turn it back to Bonnie.

27m 35s

Thank you, Ron. We are proud of the solid start we have delivered in 2025. And are energized by the long term opportunities we see ahead. While we are cautious about the current level of economic uncertainty, our focus remains on delivering personalized, relationship driven banking that helps our customers achieve their goals. While driving long term value for our shareholders. We are guided by clear strategic compass. Expand our core deposit base deepen relationships within targeted markets, deposit rich verticals, and grow in key markets. This consistent disciplined approach has served us well through the cycle of change, and we remain confident in our ability to execute and deliver sustainable, profitable growth. Thank you. We'll now open the call for your questions. Operator, please open the line up to the questions.

28m 34s

Thank you. We will now be conducting a question and answer session. You may press 2 to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the z star keys. One moment please while we poll for questions. Our first question comes from the line of Gary Tanner with D. A. Davidson. Please proceed with your question.

29m 4s

Hey, guys. Hamath Hassan on for Gary. So I saw some really solid loan production this quarter. So just wondering how is the pipeline looking And any potential tariff impacts to the clients you're seeing? Looking at the second quarter pipeline, it's it's pretty healthy. Because of the tariff and then uncertainty in the [indiscernible] Loan demand may soften up in third quarter and fourth quarter, but at this time, the pipeline looks solid. As far as the tariff goes, based on the conversation we had, particularly with our USKC customers, they appear to be in better position than domestic company in The U. S. Because they've been preparing themselves since Trump administration initially mentioned that tariff. And additionally, roughly one third of our corporate Korea customers are Tier one and Tier two of automotive industry in Georgia, Alabama corridor. So for obvious reason, they produce in domestic so they're not impacted by tariff. So in general, our customers are more optimistic than and they think it's manageable and it's not detrimental. Impact. And then we have ninety days hold on the tariff. So they're hoping for some type of negotiation between the nations and if that happens, then, I think this will pass us Thank you.

31m 8s

That is some great color. And I saw some very well controlled expenses this quarter. I know there was a bit of noise in the last quarter. So how should we model expenses for the rest of the year? So in the second quarter, of each fiscal year, that's when our annual merits and promotions become effective. So we wouldn't anticipate for the second quarter probably the 3% to 4% idea increase in salaries and benefits. There's a small reduction of because of the seasonality of payroll taxes, etcetera, that occur in the first quarter. So outside of that idea, the other expenses or expense components should behave again, generally in line with inflation.

32m 8s

That sounds good. And just last one for me on the capital deployment. Front. So you repurchased some shares this quarter. And given the current depressed stock price, think you guys are trading under tangible book. Should we expect any elevated repurchases?

32m 31s

As we've commented before in our prior investor calls, the board looks at the dividend and looks at share repurchases each quarter. And based upon that analysis, which looks forward a bit in terms of what we can expect, know, we lay out our plan. So with that said, you know, we've demonstrated now we think at least four consecutive quarters, if I'm not mistaken. Or close thereto of share repurchase at various amounts from I think a low of 25,000 to a high of 75,000. So that probably is not unreasonable, but again, the determination isn't made until the board meets and then we execute on that plan.

33m 22s

Great, thank you for taking my questions.

33m 27s

Thank you.

33m 29s

Our next question comes from the line of Kelly Motta with KBW. Please proceed with your question.

33m 36s

Hey, guys. Good afternoon. Thanks for the question. [indiscernible] starting off on the margin, you you had some tremendous expansion here, and I appreciate the color and the depth about that shows the, cadence of the CD repricing over the next couple of quarters. Wondering if you could share, Ron, as you have in the past, spot rate on deposits here in March as well as [indiscernible] new CDs are coming on at at this point.

34m 15s

Sure, Kelly. So, you did make reference to the supplemental deck on our footnote on that same page. [indiscernible] indicate the price for the month of March. So the CDs for the month of March was 4.1%, and the average sparing deposit cost for the month of March was 3.67%. So beginning with just the cost of time deposits at $4.10 for the month of March. If you look on that same page, you'll see that the average for the quarter was four point one seven. So only off by about seven basis points, if you will. And then if you look at the maturing CDs for the second quarter, their average is $4.41. And again, you're looking at 30 basis points differential. So there'll still be some relief in the second quarter, and again probably in the third quarter, but the pace and the magnitude of the change continues to diminish. So I anticipate that the rate of change will continue to slow So the margin expansion while it still may be present will probably subside to what we've experienced in the fourth and quarter of last year and the first quarter of this year. When you look at the average cost of interest bearing deposits, for the month of March at $3.67, that's right on top of the average for the quarter at $3.67.

35m 59s

So you can kind of tell even from that perspective, which takes into consideration our non maturity deposits that the rate of change will continue to slow. So long way of saying there'll probably be margin expansion, all things being equal, But again, I anticipate the rate of change to be much, much slower than we experienced over the recent quarters.

36m 21s

Got it. That's helpful. And just quick follow-up to close the loop on margin. Do you have it looks like new loans are still coming up on well above book yields. The amount of loans that are maturing or adjustable rates resetting over the balance of the year here.

36m 44s

Right. So, again, refer to that same page. You can see that the average yield on the entire loan book is pretty much holding a six handle and when it drops to a five handle, it really hugs six pretty closely. So even though the incremental addition to the loan book is coming at rates higher than the average, the percentage of that increment is fairly small given the 6,500,000,000.0 of the loan book. So it's probably more realistic to assume the loan book will continue its average with the slight upward bias. But again, I would emphasize slight So I think that's how I would start to think about loan yields.

37m 36s

Okay. That's super helpful. I appreciate the color. Turning to credit, you did have the migration of that NPL, I think, the release calls out that it's maybe a syndicated credit. Can you provide a bit more color as to [indiscernible] the borrower industry or or type. I think it's it's it might be in CRE. And then what kind of reserve you have put up against it.

38m 10s

Sure. Yeah, it is a syndicate commercial real estate. It is office property in the Central Business District. It has been paid as agreed. However, as it matured in early January, the deed lender and the sponsor have been discussing the renewal. Or the extension of the loan, but they have not been able to come to an agreement as of yet. So, we are continuously monitoring the progress. Based on the collateral shortfall, that we have provided, 6,200,000.0 reserve during the quarter.

38m 58s

Okay, that's helpful. And last question from me about about how large is the syndicated book as a percentage of your loan book?

39m 11s

Sure, our syndicated loan book total outstanding is about $255,000,000 Okay, so it's relatively small.

39m 22s

It's a very small percentage.

39m 25s

Got it. Appreciate the color. I'll step back. Thank you.

39m 30s

Sure.

39m 33s

Thank you.

39m 34s

Our next question comes from the line of Adam Butler with Piper Sandler. Please proceed with your question.

39m 40s

Hey, everyone. Good afternoon. This is Adam on for Matthew Clark. Thanks for taking the questions. If I could piggyback off of the credit question on the syndicated office CRE loan. Just first, are you guys where are you guys in rank on the syndication? Is Are there banks above you?

40m 4s

And how big is the overall loan itself?

40m 9s

Yeah. So, the entire loan is $200,000,000 We are about 10% There are other lenders, a couple of other lenders that obviously has a higher portion. I think the lead bank has over 40% interest.

40m 28s

Okay. That's helpful. And then, just another question. Looking at your overall office CRE portfolio, I think in the slide deck you could see that it represents 9% of loans. I was just wondering if you could talk about some of the office loans that are coming due over the course of the next few quarters. And how they're performing and how you're feeling about maturities and future repricing?

40m 55s

Yeah, think a little over 200,000,000 is maturing and year 2025. We looked at it we started talking to the customers based on the and the most recent operating statement. We don't see any potential issue at this time.

41m 18s

Okay. That's helpful.

41m 21s

And then, just moving back to the NIM. On your non maturity deposits, money market and savings, guys have been able to manage these costs down over the course of the past few quarters. Are you seeing greater ability to lower these costs still? Or I'm just curious how the conversations are going and how much flexibility you see with lowering those costs going forward.

41m 47s

Yeah. In first quarter, I think little less than like approximately $680,000,000 retail city rolled up at 4.69%. We're able to retain 88% of that and reprice that at 77 basis points lower, which is about 3.93 And I see at least in the Korean American banking space, our competitors start to lower their CD rates. Which is good news for us. So hopefully coming quarters, for the maturing cities, we'll be able to lower the CD and retain it at reprice at high threes rather than low fours. [indiscernible] That's helpful color. And then another one from me on the loan yield. I guess, I mean, I see in slide 10 your loan beta thus far this downward rate cycle has been I think it says 11%. I can calculate that. But I'm just curious if we get more Fed rate cuts, do you expect that loan beta to kind of hover in the 10% to 20% range? Or do you kind of see a different outcome?

43m 12s

So, I guess you have to kind of think about it relative to the the amount of change in a period. So, what we were trying to also illustrate in that particular slide, when you when you had a 500 basis point increase in the Fed fund rate, you could see how the loan book behaved in that kind of rapid upward idea.

43m 40s

And so, there's a chance for some symmetry again, but with a if you move by 25 basis points, which is not all that large, we shouldn't anticipate a very high beta. It should be fairly low. When you get a deeper change, 50 to 100 basis points, then that starts pushing on the idea of refinancing, prepays, things of that sort, can then start to affect your beta and then probably push to the higher side. So, remains to be seen, but as you can tell from the 100 basis points that we've declined, which has been fairly with the exception of the first 50 basis point move, been fairly slow, the loan yields really haven't moved all that much. So I would put it into that context, Adam, and then allow you to kind of create the scenarios of the speed of change, the pace of change, the volume of change, because that's really what's at foot. And you need to kind of have a sense of that or a view of that to kind of figure out where the loan yields may end up.

44m 53s

Okay, I appreciate that. Yeah, that's helpful.

44m 57s

And then, one more for me. On the fee side of things. Was the FDA production step up again. In 1Q. Can you just provide some of your updated expectations for the level of production you're expecting to see going forward Yeah, so we provide a guidance of quarterly production of $42,000,000 $45,000,000 a quarter. So, that guidance stands. And then just plusminus 5,000,000 from that. But going into the second Q, as Anthony mentioned, even our SBA, we do have a very solid SBA pipeline.

45m 49s

In the January, we did notice the drop in the premium from the year end 2024. So assuming that the premium market holds similar to the first Q, I think that we may be able to see the same type of whether the production or the expected premium income.

46m 21s

Okay. Yeah, that makes sense to me. And those were all my questions. I appreciate you guys taking the time Thank you.

46m 37s

Thank you.

46m 38s

And as a reminder, if anyone has any questions, you may press And we have reached the end of our question and answer session. I would like to turn the floor back to Bonnie Lee for closing remarks.

47m 2s

Thank you for joining our call today. We appreciate your interest in Hanmi and look forward to sharing our progress with you throughout the year. Thank you.

47m 12s

Thank you. This does conclude today's conference and we thank you for your participation. You may disconnect your lines at this time.

Key Insights

HAFC reported strong Q1 2025 results with net income of $17.7 million ($0.58 per diluted share), up 17% and 16% respectively year-over-year, and continued net interest margin expansion to 3.02%.
Total loans grew to $6.28 billion (up 0.5% quarter-over-quarter), with solid production across all categories; deposits increased 3% driven by new commercial accounts and branch contributions, with non-interest bearing deposits at 31.2% of total.
Asset quality remained stable: allowance for credit losses held at 1.12% of loans, nonperforming assets rose slightly due to a syndicated CRE office loan, but overall credit metrics were flat; office CRE maturities in 2025 (~$200M) are not expected to present issues.
Operating expenses were well managed, resulting in an efficiency ratio of 55.7% (best since Q4 2023); noninterest income rose 5% primarily from SBA loan sales, and tangible book value per share increased 2.6% to $24.49.
Forward-looking: Management expects low-to-mid single digit loan growth for 2025, continued focus on C&I expansion, further margin expansion at a slower pace, disciplined expense management (3-4% salary/benefit increase in Q2), and ongoing share repurchases subject to board approval.

Recent Transcripts

Strong Q1 2025 driven by deposit growth, margin expansion, and disciplined expense management.

Hanmi Financial delivered strong 2024 results with diversified loan growth and improved margins.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$224M	$236M	$272M	$249M	$233M
Cost of Revenue	$10M	$9.6M	$0	$11M	$0
Gross Profit	$214M	$226M	$272M	$238M	$233M
Gross Profit %	96%	96%	100%	95%	100%
R&D Expenses	$0	$0	$0	$0	$0

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	$42M	$99M	$101M	$80M	$62M
Dep. & Amort.	$11M	$16M	$15M	$9.2M	$6.5M
Def. Tax	$24M	-$41M	$33M	$0	$0
Stock Comp.	$2.5M	$2.4M	$2.6M	$2.7M	$0
Chg. in WC	-$12M	$9.3M	$22M	$21M	$0

2020

2021

2022

2023

2024

Net Income

$42M

$99M

$101M

$80M

$62M

Dep. & Amort.

$11M

$16M

$15M

$9.2M

$6.5M

Def. Tax

$24M

-$41M

$33M

Stock Comp.

$2.5M

$2.4M

$2.6M

$2.7M

Chg. in WC

-$12M

$9.3M

$22M

$21M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$392M	$609M	$352M	$302M	$305M
ST Investments	$754M	$911M	$854M	$866M	$0
Cash & ST Inv.	$1.1B	$1.5B	$1.2B	$1.2B	$305M
Receivables	$440M	$499M	$613M	$627M	$0
Inventory	-$455M	-$666M	-$423M	$0	$0

2020

2021

2022

2023

2024

Cash

$392M

$609M

$352M

$302M

$305M

ST Investments

$754M

$911M

$854M

$866M

Cash & ST Inv.

$1.1B

$1.5B

$1.2B

$305M

Receivables

$440M

$499M

$613M

$627M

Inventory

-$455M

-$666M

-$423M

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice.

Market Cap: $689M
IPO Date: 4/6/94
CEO: Ms. Bonita I. Lee
Fulltime Employees: 597
Sector: Financial Services
Industry: Banks - Regional
Country: US
Exchange: NASDAQ Global Select

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Watchlist

Earnings

Report Date

Apr 22, 2025

Reported Revenue

107M

Beat +68.61%

Avg 1d Change

5.99%

Report Period

Q1 2025

Reported EPS

0.58

Beat +1.75%

Implied Move 1d

10.26%

Transcript

11m 46s

12m 36s

Me.

12m 37s

Thank you for joining us today to discuss our first quarter twenty twenty five results.

12m 42s

14m 19s

16m 1s

17m 34s

18m 16s

We plan to hire additional banking talent to expand our C and I business in target verticals and increase our core deposit growth.

18m 26s

18m 58s

19m 19s

20m 56s

22m 46s

24m 24s

25m 23s

27m 22s

The company's preliminary common equity Tier one ratio was 12.13% and the bank's preliminary total capital ratio was 14.48%. With that, I will turn it back to Bonnie.

27m 35s

28m 34s

29m 4s

31m 8s

32m 8s

32m 31s

33m 22s

Great, thank you for taking my questions.

33m 27s

Thank you.

33m 29s

Our next question comes from the line of Kelly Motta with KBW. Please proceed with your question.

33m 36s

34m 15s

35m 59s

36m 21s

36m 44s

37m 36s

38m 10s

38m 58s

Okay, that's helpful. And last question from me about about how large is the syndicated book as a percentage of your loan book?

39m 11s

Sure, our syndicated loan book total outstanding is about $255,000,000 Okay, so it's relatively small.

39m 22s

It's a very small percentage.

39m 25s

Got it. Appreciate the color. I'll step back. Thank you.

39m 30s

Sure.

39m 33s

Thank you.

39m 34s

Our next question comes from the line of Adam Butler with Piper Sandler. Please proceed with your question.

39m 40s

40m 4s

And how big is the overall loan itself?

40m 9s

Yeah. So, the entire loan is $200,000,000 We are about 10% There are other lenders, a couple of other lenders that obviously has a higher portion. I think the lead bank has over 40% interest.

40m 28s

40m 55s

41m 18s

Okay. That's helpful.

41m 21s

41m 47s

43m 12s

43m 40s

44m 53s

Okay, I appreciate that. Yeah, that's helpful.

44m 57s

45m 49s

46m 21s

Okay. Yeah, that makes sense to me. And those were all my questions. I appreciate you guys taking the time Thank you.

46m 37s

Thank you.

46m 38s

And as a reminder, if anyone has any questions, you may press And we have reached the end of our question and answer session. I would like to turn the floor back to Bonnie Lee for closing remarks.

47m 2s

Thank you for joining our call today. We appreciate your interest in Hanmi and look forward to sharing our progress with you throughout the year. Thank you.

47m 12s

Thank you. This does conclude today's conference and we thank you for your participation. You may disconnect your lines at this time.

Key Insights

HAFC reported strong Q1 2025 results with net income of $17.7 million ($0.58 per diluted share), up 17% and 16% respectively year-over-year, and continued net interest margin expansion to 3.02%.
Total loans grew to $6.28 billion (up 0.5% quarter-over-quarter), with solid production across all categories; deposits increased 3% driven by new commercial accounts and branch contributions, with non-interest bearing deposits at 31.2% of total.
Asset quality remained stable: allowance for credit losses held at 1.12% of loans, nonperforming assets rose slightly due to a syndicated CRE office loan, but overall credit metrics were flat; office CRE maturities in 2025 (~$200M) are not expected to present issues.
Operating expenses were well managed, resulting in an efficiency ratio of 55.7% (best since Q4 2023); noninterest income rose 5% primarily from SBA loan sales, and tangible book value per share increased 2.6% to $24.49.
Forward-looking: Management expects low-to-mid single digit loan growth for 2025, continued focus on C&I expansion, further margin expansion at a slower pace, disciplined expense management (3-4% salary/benefit increase in Q2), and ongoing share repurchases subject to board approval.

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