Hanmi Financial Q3 profit rises as higher net interest income offsets loan charge-off
HAFC•Hanmi Financial's Q3 net income was $23.68 million and EPS was $0.80. Net interest income rose 5.8% quarter over quarter, while the company returned 55.6% of earnings to shareholders through dividends and share repurchases.
1. Quarterly results
Hanmi Financial's Q3 net income and EPS rose slightly from the prior quarter. Net interest income increased 5.8%, supported by growth in average interest-earning assets funded by higher average deposits.
2. Loans and asset quality
Loan production was $544 million but was partially offset by elevated payoffs, resulting in modest loan balance growth. Asset quality remained strong despite a $3.2 million charge-off on a commercial real estate loan; nonperforming assets were unchanged at 0.12% of total assets.
3. Shareholder returns
The company returned 55.6% of Q3 earnings to shareholders via dividends and share repurchases. Hanmi said strong capital and deposit growth position it to capitalize on market opportunities.
