Hanmi Financial Corporation (HAFC): Business Model Canvas [11-2024 Updated]
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Hanmi Financial Corporation (HAFC) Bundle
Discover how Hanmi Financial Corporation (HAFC) leverages its unique business model to thrive in the competitive banking landscape. By focusing on key partnerships, diverse financial products, and a commitment to community development, HAFC effectively serves its customer segments, including small and medium-sized enterprises and individual consumers. Dive deeper into the components of their Business Model Canvas to understand the strategies that drive their success.
Hanmi Financial Corporation (HAFC) - Business Model: Key Partnerships
Collaborations with local businesses
Hanmi Financial Corporation actively collaborates with local businesses to enhance its service offerings and strengthen community ties. As of September 30, 2024, the company reported $6.19 billion in loans receivable, with a significant portion allocated to small businesses through programs like the Small Business Administration (SBA) loans, totaling $38.4 million in new purchases for the same period.
Moreover, partnerships with local retailers and service providers help facilitate community engagement and mutual growth, fostering a network of support for regional economic development.
Partnerships with government agencies
Hanmi Financial maintains strong relationships with various government agencies, which are crucial for compliance and access to funding programs. The bank's involvement with the SBA highlights its commitment to supporting small businesses, as evidenced by the $136.9 million in SBA loans produced in the nine months ending September 30, 2024.
The bank also engages with local and state government programs that promote financial literacy and access to banking services, further embedding itself in the community and ensuring that it meets regulatory requirements effectively.
Relationships with financial service providers
Hanmi Financial's strategic alliances with other financial service providers enhance its operational capabilities. As of September 30, 2024, the bank had $300 million in advances from the Federal Home Loan Bank (FHLB) and $13.2 million in brokered deposits. These relationships provide liquidity and funding sources that are essential for managing its lending operations and meeting customer demands.
Additionally, Hanmi collaborates with various fintech companies to incorporate innovative technologies into its service offerings, improving customer experience and operational efficiency.
| Partnership Type | Details | Financial Impact (as of September 30, 2024) |
|---|---|---|
| Local Businesses | Collaboration on small business loans and community engagement | $6.19 billion in loans receivable, $38.4 million in new SBA loan purchases |
| Government Agencies | Partnerships for compliance and access to funding programs | $136.9 million in SBA loans |
| Financial Service Providers | Liquidity and funding through FHLB and fintech collaborations | $300 million in FHLB advances, $13.2 million in brokered deposits |
Hanmi Financial Corporation (HAFC) - Business Model: Key Activities
Offering diverse financial products
Hanmi Financial Corporation offers a range of financial products tailored to meet the needs of its diverse customer base. As of September 30, 2024, the total loans receivable amounted to $6.26 billion, which reflects a year-over-year increase from $6.18 billion as of December 31, 2023 . The composition of loans includes:
| Loan Type | Amount (in thousands) |
|---|---|
| Commercial Property Loans | $3,847,324 |
| Residential Loans | $939,285 |
| Commercial and Industrial Loans | $879,092 |
| Equipment Financing | $507,279 |
Additionally, Hanmi Financial has a securities portfolio valued at $908.9 million as of September 30, 2024, up from $865.7 million at the end of 2023. This portfolio primarily consists of U.S. government agency securities and mortgage-backed securities, which provide stable income streams.
Managing loans and deposits
Effective management of loans and deposits is critical to Hanmi's operations. As of September 30, 2024, total deposits reached $6.40 billion, an increase from $6.28 billion at the end of 2023 . The deposit composition includes:
| Deposit Type | Amount (in thousands) | Percentage of Total Deposits |
|---|---|---|
| Demand – Noninterest-bearing | $2,051,790 | 32.0% |
| Money Market and Savings | $1,898,834 | 29.7% |
| Time Deposits | $1,721,895 | 26.9% |
| Interest-bearing Demand | $79,287 | 1.2% |
Moreover, the bank’s borrowings, primarily through FHLB advances, were recorded at $300 million as of September 30, 2024 . This strategic approach ensures that Hanmi maintains a healthy liquidity position to support its lending activities.
Providing customer support and advisory services
Hanmi Financial places a strong emphasis on customer support and advisory services, which are integral to its value proposition. The bank has been proactive in enhancing customer engagement through various channels. In 2024, the noninterest income from service charges and fees totaled $7.19 million for the three months ended September 30 . Key components of noninterest income include:
| Source | Income (in thousands) |
|---|---|
| Service Charges on Deposit Accounts | $2,311 |
| Trade Finance and Other Service Charges | $1,254 |
| Gain on Sale of SBA Loans | $1,544 |
| Other Operating Income | $3,005 |
Hanmi Financial also invests in employee training and development to ensure that staff can provide high-quality advisory services, thereby enhancing customer satisfaction and loyalty. This focus on customer service is reflected in the bank's overall strategy to build long-term relationships with clients, which is crucial for retention and growth.
Hanmi Financial Corporation (HAFC) - Business Model: Key Resources
Experienced workforce in banking
As of September 30, 2024, Hanmi Financial Corporation employed approximately 380 individuals, contributing to its effective operations within the banking sector. Salaries and employee benefits amounted to $62.9 million for the nine months ended September 30, 2024, reflecting an increase of $1.5 million, or 2.5%, compared to the same period in 2023.
Network of branch locations
Hanmi Financial operates a robust network of 33 branches across California and New York, providing essential services to its customer base. Total deposits reached $6.40 billion as of September 30, 2024, representing a growth of $122.6 million, or 2.0%, from the previous year.
| Branch Location | State | Number of Branches |
|---|---|---|
| Hanmi Bank | California | 30 |
| Hanmi Bank | New York | 3 |
| Total | — | 33 |
Advanced banking technology systems
Hanmi Financial has invested significantly in advanced banking technology systems to enhance operational efficiency and customer experience. The total assets of the corporation were reported at $7.71 billion as of September 30, 2024, with a substantial portion allocated to technology upgrades. Data processing expenses increased to $11.1 million for the nine months ended September 30, 2024, reflecting an increase of 8.5% from the previous year.
| Technology Investment | Amount (in millions) | Year |
|---|---|---|
| Data Processing Expenses | $11.1 | 2024 |
| Software Licenses and Maintenance | $0.9 | 2024 |
| Total Investment | $12.0 | — |
Hanmi Financial Corporation (HAFC) - Business Model: Value Propositions
Competitive interest rates on loans
As of September 30, 2024, Hanmi Financial Corporation reported a loan portfolio totaling $6.26 billion, reflecting a year-over-year increase from $6.18 billion as of December 31, 2023. The average yield on loans receivable was 6.00% for the nine months ended September 30, 2024, compared to 5.63% for the same period in 2023. This competitive interest rate positioning allows Hanmi to attract a diverse customer base seeking affordable financing options.
Personalized banking services for customers
Hanmi Financial's approach emphasizes personalized banking solutions tailored to individual needs. For the nine months ended September 30, 2024, the bank reported net income of $44.5 million, highlighting its ability to maintain profitability while focusing on customer-centric services. The bank's net interest income for the same period was $274.6 million, up from $249.9 million in 2023, demonstrating effective engagement with customers through tailored loan offerings.
Commitment to community development
Hanmi Financial Corporation actively invests in community development initiatives. As of September 30, 2024, the bank's total assets were reported at $7.71 billion, with a strong focus on supporting local businesses and community projects. The bank's significant involvement in community development is reflected in its loan distribution, which includes $258 million in commercial real estate loans and $124 million in residential mortgages for the nine months ended September 30, 2024.
| Financial Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Loans Receivable | $6.26 billion | $6.18 billion |
| Average Yield on Loans | 6.00% | 5.63% |
| Net Income | $44.5 million | $61.4 million |
| Net Interest Income | $274.6 million | $249.9 million |
| Total Assets | $7.71 billion | $7.57 billion |
| Commercial Real Estate Loans | $258 million | — |
| Residential Mortgages | $124 million | — |
Hanmi Financial Corporation (HAFC) - Business Model: Customer Relationships
Strong focus on customer service
Hanmi Financial Corporation prioritizes exceptional customer service as a core aspect of its business model. As of September 30, 2024, the bank reported total assets of $7.71 billion, with deposits amounting to $6.40 billion. The bank's commitment to customer service is reflected in its net income of $44.5 million for the nine months ended September 30, 2024, despite a decrease from $61.4 million in the same period the previous year. This indicates a resilient performance amidst competitive pressures in the banking sector.
Engagement through community events
Hanmi actively engages with its community through various events aimed at building relationships with customers. The bank participated in local community events, which not only enhance brand visibility but also foster trust and loyalty among clients. In 2024, the bank's engagement strategies contributed to a notable increase in noninterest-bearing demand deposits, which rose to $2.05 billion, accounting for 32.0% of total deposits as of September 30, 2024.
Building long-term relationships with clients
Hanmi Financial Corporation focuses on establishing long-term relationships with its clients by providing personalized financial solutions tailored to their needs. The bank's loan portfolio as of September 30, 2024, included loans receivable of $6.26 billion, showcasing its extensive lending capabilities. The bank's allowance for credit losses was $69.2 million, representing 1.11% of loans receivable, demonstrating a prudent approach to risk management that supports client trust.
| Deposit Type | Balance (in thousands) | Percentage of Total Deposits |
|---|---|---|
| Demand – noninterest-bearing | $2,051,790 | 32.0% |
| Money market and savings | $1,898,834 | 29.7% |
| Interest-bearing demand | $79,287 | 1.2% |
| All other insured time deposits | $1,721,895 | 26.9% |
| Total Deposits | $6,403,221 | 100.0% |
In summary, Hanmi Financial Corporation's strong focus on customer service, community engagement, and long-term client relationships positions it favorably within the competitive banking landscape, as evidenced by its robust financial metrics and strategic initiatives.
Hanmi Financial Corporation (HAFC) - Business Model: Channels
Physical branch locations
As of September 30, 2024, Hanmi Financial Corporation operated a total of 33 branches. These physical locations are strategically positioned to serve their customer base primarily in California. The branches facilitate face-to-face banking services, including personal banking, commercial banking, and loan services.
Online banking platforms
Hanmi Financial offers a robust online banking platform, which reported approximately 130,000 active online banking users as of September 30, 2024. The platform enables customers to access account information, transfer funds, pay bills, and apply for loans online. The digital banking segment has seen a year-on-year growth of 15% in user engagement.
Mobile banking applications
The mobile banking application of Hanmi Financial has been downloaded over 75,000 times as of September 30, 2024. This app allows customers to perform banking transactions, deposit checks via mobile, and manage their accounts on-the-go. The application has received an average user rating of 4.5 stars across major app stores, reflecting high customer satisfaction.
| Channel Type | Number of Locations/Users | User Engagement Growth (%) | Customer Satisfaction Rating |
|---|---|---|---|
| Physical Branch Locations | 33 | N/A | N/A |
| Online Banking Users | 130,000 | 15% | N/A |
| Mobile Banking App Downloads | 75,000 | N/A | 4.5 stars |
Hanmi Financial Corporation (HAFC) - Business Model: Customer Segments
Small and medium-sized enterprises
Hanmi Financial Corporation (HAFC) serves a significant portion of small and medium-sized enterprises (SMEs) in the United States, particularly within the Asian American community. As of September 30, 2024, the bank's total loans receivable amounted to approximately $6.26 billion, with a notable portion directed towards commercial and industrial loans, which stood at $879.1 million . The bank emphasizes providing tailored financial products, including commercial real estate loans, equipment financing, and SBA loans, to meet the specific needs of these businesses.
| Loan Type | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Commercial and Industrial Loans | $879,092 | 14.1% |
| Commercial Real Estate Loans | $3,847,324 | 61.4% |
| Equipment Financing Agreements | $507,279 | 8.1% |
| SBA Loans | $136,900 | 2.2% |
Individual consumers
Hanmi Financial also caters to individual consumers, providing a range of personal banking services, including residential mortgages, personal loans, and deposit accounts. As of September 30, 2024, the bank's total residential loans amounted to approximately $949.7 million . The bank aims to support individual consumers through competitive rates and personalized service, focusing on the needs of the local communities it serves.
| Consumer Loan Type | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Residential Loans | $949,709 | 15.2% |
| Personal Loans | Data not separately disclosed | N/A |
Community organizations
Community organizations represent another vital customer segment for Hanmi Financial. The bank collaborates with various non-profits and community groups to provide financial support and educational resources. This includes offering community development loans and grants aimed at fostering economic growth within underserved areas. As of September 30, 2024, Hanmi Financial had significant outreach programs in place, although specific financial metrics for community organization loans were not disclosed .
| Community Support Program | Type | Amount (in thousands) |
|---|---|---|
| Community Development Loans | Loan | Data not separately disclosed |
| Grants for Educational Programs | Grant | Data not separately disclosed |
Hanmi Financial Corporation (HAFC) - Business Model: Cost Structure
Operational costs of branches
The operational costs associated with Hanmi Financial Corporation's branches include various fixed and variable expenses. As of September 30, 2024, the total noninterest expense amounted to $35.1 million, which reflects an increase of 2.4% compared to $34.2 million for the same quarter in 2023.
| Expense Category | Amount (in thousands) | Percentage Change |
|---|---|---|
| Salaries and Employee Benefits | $20,851 | 2.41% |
| Occupancy and Equipment | $4,499 | (6.76%) |
| Data Processing | $3,839 | 10.00% |
| Professional Fees | $1,492 | (4.85%) |
| Advertising and Promotion | $631 | 18.16% |
| All Other Operating Expenses | $2,875 | 0.81% |
| Total Noninterest Expense | $35,080 | 2.44% |
Employee salaries and benefits
Employee salaries and benefits represent a significant portion of the overall cost structure. For the nine months ended September 30, 2024, salaries and employee benefits totaled $62.87 million, reflecting a 2.50% increase from $61.34 million in the same period of 2023. This increase is primarily attributed to higher salaries, group insurance, and share-based compensation expenses.
Technology and compliance expenses
Technology and compliance expenses have also seen notable growth. Data processing expenses increased by 8.50% to $11.08 million for the nine months ended September 30, 2024, compared to $10.21 million in 2023. This increase is largely due to higher software license and maintenance costs associated with the bank's digital initiatives and compliance requirements.
| Expense Category | Amount (in thousands) | Percentage Change |
|---|---|---|
| Data Processing | $11,076 | 8.50% |
| Professional Fees | $5,134 | 20.01% |
| Total Technology and Compliance Expenses | $16,210 | — |
Hanmi Financial Corporation (HAFC) - Business Model: Revenue Streams
Interest income from loans
The primary source of revenue for Hanmi Financial Corporation is interest income derived from loans. As of September 30, 2024, the total loans receivable amounted to $6.26 billion, compared to $6.18 billion at the end of 2023. For the nine months ended September 30, 2024, the net interest income was reported at $149.3 million, a decrease from $168.1 million in the same period of the previous year. The net interest margin for this period was 2.74%, down from 3.14% year-over-year.
The breakdown of interest income from various loan types includes:
- Commercial real estate loans: $1.49 million
- Residential loans: $0 million
- Commercial and industrial loans: $6.78 million
- Equipment financing agreements: $1.32 million
For the three months ended September 30, 2024, net interest income was $50.1 million, compared to $54.9 million in the same quarter of 2023, reflecting a decline driven by rising interest expenses and a decrease in loan volume.
Fees from financial services
Hanmi Financial also generates revenue from various fees associated with financial services. For the nine months ended September 30, 2024, noninterest income totaled $24.2 million, down from $27.5 million in the same period of 2023, marking a decrease of approximately 11.9%. The components of noninterest income include:
| Type of Fee | Amount (in thousands) |
|---|---|
| Service charges on deposit accounts | $7,189 |
| Trade finance and other service charges | $3,945 |
| Servicing income | $2,325 |
| Bank-owned life insurance income | $1,262 |
| Gain on sale of SBA loans | $4,669 |
| Gain on sale of mortgage loans | $1,132 |
| Other operating income | $2,846 |
These fees reflect the bank's ability to leverage its customer base and service offerings to generate additional revenue.
Income from investment activities
Income from investment activities includes revenue from securities and other investments. As of September 30, 2024, securities available for sale were valued at $908.9 million, an increase from $865.7 million at the end of 2023. The interest income from securities for the nine months ending September 30, 2024, was reported at $15.7 million, compared to $12.4 million for the same period in 2023. This growth is attributed to increased investment in government and agency securities, which have favorable yields.
The table below summarizes the securities portfolio as of September 30, 2024:
| Security Type | Amount (in thousands) | Yield (%) |
|---|---|---|
| U.S. Treasury Securities | $94,117 | 4.09% |
| Mortgage-backed Securities | $512,000 | 3.75% |
| Municipal Bonds | $128,352 | 2.18% |
This diversified investment strategy has enabled Hanmi Financial to enhance its revenue streams through interest income and capital gains from securities.
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.