Business
Hanmi Reports Third Quarter 2021 Results
2021 Third Quarter Highlights: Third quarter net income of $26.6 million, or $0.86 per diluted share, up 20.1% from $22.1 million, or $0.72 per diluted share
About this update from Hanmi Financial Corporation
[{"type":"text","content":"2021 Third Quarter Highlights: Third quarter net income of $26.6 million, or $0.86 per diluted share, up 20.1% from $22.1 million, or $0.72 per diluted share from the prior quarter and up 62.5% from the same quarter last year.Loans receivable were $4.86 billion at quarter-end and third quarter loan production reached $500.0 million; loans receivable increased 3.4% from the second quarter and 5.5% since year-end 2020 when excluding Paycheck Protection Program (“PPP”) loans.Deposits climbed to $5.73 billion and noninterest-bearing deposits increased to 44.5% of the portfolio; deposits increased 1.8% from the second quarter and 8.6% since year-end 2020.A $7.2 million recovery of credit loss expense for the third quarter compared with $3.3 million for the second quarter; allowance for credit losses was 1.58% at September 30, 2021 compared with 1.73% at June 30, 2021.Nonperforming assets declined 58.4% from the second quarter and were 0.32% of total assets at quarter-end compared with 0.80% at June 30, 2021.Net interest income was $50.0 million and included $1.6 million of interest income from PPP loans; up 3.2% quarter-over-quarter when excluding PPP; $21.9 million of PPP loans remain at the end of the third quarter.Net interest margin was 3.07% for the third quarter, or 3.00% excluding interest from PPP loans.Third quarter noninterest income increased 40.8% to $12.5 million from the previous quarter on higher levels of SBA gains as well as higher levels of service charges and fees.Noninterest expense was $32.5 million, up 5.6% from the previous quarter on higher advertising and promotion expenses and compensation from higher loan production; The efficiency ratio for the third quarter was 52.01% compared with 52.66% for the prior quarter.Issued $110 million of fixed-to-floating rate subordinated debt with initial annual interest rate of 3.75%.Hanmi remained well capitalized with a Total risk-based capital ratio of 17.27% and a Common equity Tier 1 capital ratio of 11.85% at September 30, 2021; tangible common equity to tangible assets ratio was 8.98% (9.01% excluding PPP loans) at the end of the third quarter. For more information about Hanmi, please see the Q3 2021 Investor Update (and Supplemental Financial Information), which is available on the Bank’s website at www.hanmi.com and via a current report on Form 8-K on the website o...