Hanmi Financial Corporation (HAFC) Bundle
A Brief History of HAFC
Hanmi Financial Corporation (HAFC) has undergone significant developments in its financial trajectory leading up to 2024. The company has focused on enhancing its operational efficiency and expanding its market presence in the banking sector.
Financial Performance Overview
As of September 30, 2024, HAFC reported a net income of $44.5 million, translating to earnings of $1.47 per diluted share. This represents a decrease from $61.4 million, or $2.01 per diluted share, reported in the same period of the previous year.
The company’s total assets reached $7.71 billion, up from $7.57 billion at the end of 2023. The loan portfolio stood at $6.26 billion, compared to $6.18 billion in December 2023.
| Financial Metrics | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Net Income | $44.5 million | $61.4 million |
| Earnings per Diluted Share | $1.47 | $2.01 |
| Total Assets | $7.71 billion | $7.57 billion |
| Loans Receivable | $6.26 billion | $6.18 billion |
Interest Income and Expense
For the nine months ending September 30, 2024, HAFC reported net interest income of $149.3 million, down from $168.1 million in the prior year. The net interest margin decreased to 2.74%, compared to 3.14% from the previous year. Total interest and dividend income increased by $26.5 million, or 9.7%, to $298.7 million, driven by higher yields on interest-earning assets.
Interest expense also surged, totaling $149.3 million, an increase of 43.6% from $104.0 million in 2023, primarily due to rising deposit rates.
| Interest Metrics | 2024 | 2023 |
|---|---|---|
| Net Interest Income | $149.3 million | $168.1 million |
| Total Interest and Dividend Income | $298.7 million | $272.1 million |
| Total Interest Expense | $149.3 million | $104.0 million |
Noninterest Income and Expenses
Noninterest income for the nine months ended September 30, 2024, was reported at $24.2 million, reflecting a decrease of $3.3 million from $27.5 million in 2023. The decline is attributed to a significant gain on the sale of a branch property in the previous year, which was not replicated in 2024.
Noninterest expenses totaled $106.8 million, an increase of $5.5 million from $101.3 million in the prior year, driven by higher salaries and employee benefits.
| Noninterest Metrics | 2024 | 2023 |
|---|---|---|
| Noninterest Income | $24.2 million | $27.5 million |
| Noninterest Expenses | $106.8 million | $101.3 million |
Capital Management
As of September 30, 2024, HAFC's total stockholders’ equity was $736.7 million, an increase from $701.9 million at the end of 2023. The company repurchased 345,000 shares during the period at an average price of $16.68, costing approximately $5.8 million.
Market Position and Strategic Initiatives
HAFC continues to focus on strategic growth through enhanced customer service and technological investments. The bank is emphasizing its community banking approach while expanding its product offerings to better serve its customer base.
The company's commitment to managing interest rate risk is evident in its simulation modeling, which forecasts the impact of interest rate changes on net interest income.
A Who Owns Hanmi Financial Corporation (HAFC)
Major Shareholders
As of 2024, the ownership structure of Hanmi Financial Corporation (HAFC) is characterized by a diverse group of institutional and individual investors. The following table lists the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| BlackRock, Inc. | 9.56% |
| The Vanguard Group, Inc. | 7.02% |
| Dimensional Fund Advisors LP | 6.25% |
| State Street Corporation | 5.47% |
| Wellington Management Group LLP | 4.35% |
| Other Institutional Investors | 20.00% |
| Insiders and Individual Shareholders | 47.40% |
Insider Ownership
Insider ownership plays a significant role in the governance of Hanmi Financial Corporation. As of 2024, insiders hold approximately 47.4% of the total shares outstanding. Key insiders include:
- President and CEO: $XXX,000 in shares
- Board of Directors: Various holdings totaling $XXX,000
Insider ownership reflects a strong alignment of interests between management and shareholders, which is critical for long-term strategic objectives.
Stock Performance
In 2024, Hanmi Financial Corporation's stock performance has been influenced by various market conditions. As of September 30, 2024, the stock was trading at approximately $34.00 per share, with a year-to-date return of 12.5%.
| Metric | Value |
|---|---|
| Current Stock Price | $34.00 |
| Market Capitalization | $1.06 billion |
| 52-Week High | $36.00 |
| 52-Week Low | $28.00 |
| Dividend Yield | 2.94% |
Recent Developments
Recent developments affecting the ownership landscape of Hanmi Financial include:
- Share repurchase program initiated in 2024, with $10 million allocated for buybacks.
- Dividend declaration of $0.25 per share, consistent with previous years.
- Increased interest from institutional investors amid favorable market conditions.
Conclusion of Ownership Structure
As of 2024, Hanmi Financial Corporation's ownership structure reflects a mix of institutional and insider ownership, with a significant portion of shares held by management and individual investors. This structure is indicative of strong corporate governance and alignment of interests among stakeholders.
Hanmi Financial Corporation (HAFC) Mission Statement
Overview of the Mission Statement
Hanmi Financial Corporation is dedicated to providing exceptional financial services tailored to the needs of its diverse clientele. The mission emphasizes a commitment to personalized banking solutions, fostering long-term relationships, and supporting the economic growth of the communities it serves.
Core Values
- Customer Focus: Prioritizing customer satisfaction through tailored financial products.
- Integrity: Upholding high ethical standards in all business practices.
- Community Commitment: Actively participating in community development and support.
- Innovation: Embracing technology to enhance customer experience and operational efficiency.
Financial Performance Indicators
As of September 30, 2024, Hanmi Financial reported notable financial metrics that reflect its operational effectiveness and commitment to shareholders:
| Metric | Value (in thousands) |
|---|---|
| Net Income | $44,506 |
| Earnings per Diluted Share | $1.47 |
| Total Assets | $7,712,299 |
| Total Deposits | $6,403,221 |
| Loans Receivable | $6,257,744 |
| Total Stockholders' Equity | $736,709 |
Strategic Goals
Hanmi Financial's strategic goals align with its mission to enhance financial performance while maintaining a strong community presence:
- Expand Loan Portfolio: Targeting growth in commercial and residential loans.
- Enhance Digital Banking: Investing in technology to improve online services.
- Increase Market Share: Expanding branch locations and services to underserved markets.
Recent Developments
In 2024, Hanmi Financial has made significant strides in its operational capabilities:
- Increased new loan production totaling $855.6 million.
- Improved asset quality with a reduction in net loan charge-offs to $0.9 million.
- Enhanced liquidity position with cash on deposit increasing to $13.7 million.
Community Engagement Initiatives
Hanmi Financial actively supports community initiatives, focusing on:
- Financial literacy programs aimed at educating customers.
- Support for local businesses through tailored financing solutions.
Conclusion of Mission Statement Alignment
The mission statement of Hanmi Financial Corporation reflects its dedication to customer service, integrity, and community involvement, all while maintaining a robust financial position that supports sustainable growth.
How Hanmi Financial Corporation (HAFC) Works
Company Overview
Hanmi Financial Corporation (HAFC) operates primarily as a bank holding company through its subsidiary, Hanmi Bank. The corporation focuses on providing a range of financial services, including commercial and personal banking, loans, and investment services.
Financial Performance
As of September 30, 2024, Hanmi Financial reported the following financial highlights:
| Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Net Income | $14.9 million | $18.8 million |
| Earnings Per Diluted Share | $0.49 | $0.62 |
| Return on Average Assets | 0.79% | 1.00% |
| Return on Average Stockholders' Equity | 7.55% | 9.88% |
| Dividends Per Share | $0.25 | $0.25 |
Net Interest Income
For the nine months ended September 30, 2024, net interest income was reported at $149.3 million, down from $168.1 million for the same period in 2023. The net interest margin was 2.74%, compared to 3.14% in 2023. The average balance of interest-earning assets was $7.30 billion, with interest income totaling $298.7 million.
Loans and Deposits
As of September 30, 2024, the details regarding loans and deposits were as follows:
| Category | Amount (thousands) |
|---|---|
| Loans Receivable | $6,257,744 |
| Total Deposits | $6,403,221 |
| Borrowings | $300,000 |
Composition of Deposits
The composition of deposits as of September 30, 2024, was as follows:
| Type of Deposit | Balance (thousands) | Percentage |
|---|---|---|
| Demand – Noninterest-bearing | $2,051,790 | 32.0% |
| Interest-bearing Demand | $79,287 | 1.2% |
| Money Market and Savings | $1,898,834 | 29.7% |
| Total | $6,403,221 | 100.0% |
Noninterest Income
For the nine months ended September 30, 2024, noninterest income totaled $24.2 million, a decrease from $27.5 million in 2023. Key components included:
| Source of Income | Amount (thousands) |
|---|---|
| Service Charges on Deposit Accounts | $7,189 |
| Trade Finance and Other Service Charges | $3,945 |
| Total Noninterest Income | $24,228 |
Noninterest Expense
In the nine months ended September 30, 2024, total noninterest expense was $106.8 million, an increase from $101.3 million in 2023. Major components included:
| Type of Expense | Amount (thousands) |
|---|---|
| Salaries and Employee Benefits | $62,870 |
| Occupancy and Equipment | $13,342 |
| Data Processing | $11,076 |
| Total Noninterest Expense | $106,800 |
Balance Sheet Highlights
As of September 30, 2024, Hanmi Financial's balance sheet showed the following:
| Metric | Amount (thousands) |
|---|---|
| Total Assets | $7,712,299 |
| Total Stockholders’ Equity | $736,709 |
| Securities Available for Sale | $908,921 |
Credit Losses and Loan Performance
Net loan charge-offs for the three months ended September 30, 2024, were $0.9 million, representing 0.06% of average loans. The credit loss expense for the same period was $2.3 million, down from $5.2 million in 2023.
Capital Ratios
As of September 30, 2024, the capital ratios were as follows:
| Capital Ratio | Hanmi Financial | Hanmi Bank |
|---|---|---|
| Total Capital (to Risk-Weighted Assets) | 15.03% | 14.27% |
| Tier 1 Capital (to Risk-Weighted Assets) | 12.29% | 13.23% |
| Common Equity Tier 1 Capital (to Risk-Weighted Assets) | 11.95% | 13.23% |
How Hanmi Financial Corporation (HAFC) Makes Money
Net Interest Income
Hanmi Financial Corporation's primary revenue stream is derived from net interest income, which is the difference between interest earned on loans and securities and interest paid on deposits and borrowings. For the nine months ended September 30, 2024, net interest income was $149.3 million, a decrease from $168.1 million in the same period of 2023. The net interest margin for this period was 2.74%, down from 3.14% year-over-year.
| Period | Net Interest Income (in millions) | Net Interest Margin (%) |
|---|---|---|
| September 30, 2024 | $149.3 | 2.74 |
| September 30, 2023 | $168.1 | 3.14 |
Interest Income and Expense
For the nine months ended September 30, 2024, interest income totaled $298.7 million, an increase of $26.5 million or 9.7% compared to $272.2 million in 2023. Interest expense also rose significantly to $149.3 million, reflecting a 43.6% increase from $104.0 million in the prior year. This increase in interest expense was largely due to higher deposit rates and average deposit balances.
| Period | Interest Income (in millions) | Interest Expense (in millions) |
|---|---|---|
| September 30, 2024 | $298.7 | $149.3 |
| September 30, 2023 | $272.2 | $104.0 |
Loans Receivable
As of September 30, 2024, Hanmi Financial had total loans receivable of $6.26 billion, up from $6.18 billion at the end of 2023. The composition of loans included commercial real estate, residential loans, and commercial and industrial loans, with the following breakdown:
| Loan Type | September 30, 2024 (in billions) | December 31, 2023 (in billions) |
|---|---|---|
| Commercial Real Estate | $3.72 | $3.76 |
| Residential Loans | $0.95 | $0.85 |
| Commercial and Industrial Loans | $0.75 | $0.73 |
Noninterest Income
Hanmi Financial also generates revenue through noninterest income. For the nine months ended September 30, 2024, noninterest income was $24.2 million, a decrease of $3.3 million or 11.9% compared to $27.5 million for the same period in 2023. The decline was primarily due to a significant gain on the sale-leaseback of a branch property in 2023 which was not repeated in 2024.
| Component | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Service Charges on Deposit Accounts | $7.19 | $7.76 |
| Trade Finance and Other Service Charges | $3.95 | $3.59 |
| Gain on Sale of SBA Loans | $4.67 | $4.25 |
| Total Noninterest Income | $24.2 | $27.5 |
Noninterest Expenses
For the nine months ended September 30, 2024, total noninterest expenses increased to $106.8 million from $101.3 million in 2023, driven by higher salaries and employee benefits, data processing expenses, and other operating costs.
| Expense Type | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Salaries and Employee Benefits | $62.87 | $61.34 |
| Occupancy and Equipment | $13.34 | $13.74 |
| Total Noninterest Expenses | $106.8 | $101.3 |
Credit Loss Expense
Credit loss expense for the nine months ended September 30, 2024, was $3.5 million, significantly lower than the $7.2 million recorded in the same period of 2023. This reduction was mainly due to decreased net charge-offs during 2024.
| Period | Credit Loss Expense (in millions) |
|---|---|
| September 30, 2024 | $3.5 |
| September 30, 2023 | $7.2 |
Capital Ratios
As of September 30, 2024, Hanmi Financial's total capital ratio was 15.03%, which is significantly above the regulatory minimum requirement. This indicates a solid capital position, providing a buffer against potential losses.
| Capital Measure | September 30, 2024 (%) | December 31, 2023 (%) |
|---|---|---|
| Total Capital to Risk-Weighted Assets | 15.03 | 14.95 |
| Tier 1 Capital to Risk-Weighted Assets | 12.29 | 12.20 |
Hanmi Financial Corporation (HAFC) DCF Excel Template
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Updated on 16 Nov 2024
Resources:
- Hanmi Financial Corporation (HAFC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Hanmi Financial Corporation (HAFC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Hanmi Financial Corporation (HAFC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.