Hanmi Financial (HAFC) Q4 2024 earnings summary

Executive summary

• Achieved strong operational execution in Q4 2024, with net income rising 18.8% sequentially to $17.7M ($0.58 per diluted share), driven by higher net interest income and lower deposit costs.

• Full-year 2024 net income was $62.2M ($2.05 per diluted share), down 22.3% year-over-year.

• Focused on relationship banking, prudent credit administration, and disciplined expense management.

• Advanced Corporate Korea (USKC) initiative, including opening a Seoul office.

• Loans receivable stood at $6.25B, deposits at $6.44B, and total assets at $7.68B as of December 31, 2024.

Financial highlights

• Q4 net interest income was $53.4M, up 6.8% sequentially; net interest margin increased 17 bps to 2.91%.

• Full-year net interest income was $202.8M, down 8.4% year-over-year.

• Return on average assets was 0.93% in Q4 and 0.83% for the year; return on average equity was 8.89% in Q4 and 7.97% for the year.

• Deposits grew 2.5% in 2024, with noninterest-bearing deposits up 4.6% to 32.6% of total.

• Sold $88.4M in residential mortgage loans, generating $1.5M in noninterest income.

Outlook and guidance

• Targeting low to mid-single-digit loan growth in 2025, focusing on C&I expansion and reducing CRE exposure.

• Plans to continue selling residential mortgage and SBA loans in the secondary market.

• Deposit growth expected to match loan growth trends.

• Expense growth anticipated to generally track inflation, with seasonal fluctuations.

• Management highlights strong capital foundation and readiness to execute growth strategy.