Hanmi Financial Corp. (HAFC), the holding company for Hanmi Bank, Thursday reported a profit for the third quarter, compared to a loss last year, reflecting substantially lower provision for credit losses and decreased expenses.
For the third quarter, Hanmi Financial's net income was $4.2 million or $0.03 per share, compared to a loss of $14.6 million or $0.12 per share in the year-ago period.
On average, 2 analysts polled by Thomson Reuters expected earnings of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.
Los Angeles, California-headquartered Hanmi's performance marks the fourth consecutive profitable quarter. The company earned $8.0 million or $0.05 per share in the second quarter of 2011.
Jay Yoo, president and chief executive officer, said," Improvements in key asset quality measures, liquidation of problem assets, and contributions from SBA loans and investment sales highlight the third quarter profitable results."
Revenues for the quarter dropped to $31.2 million from $32.0 million in the year-ago quarter.
Net interest income, before the provision for credit losses, dropped 4.2 percent to $25.2 million from $26.3 million in the year-ago quarter. Non-interest income increased 5.4 percent to $6.0 million from $5.7 million in the third quarter of 2010.
Non-interest expense decreased 21.7 percent to $18.9 million from $24.1 million in the third quarter a year ago.
Provision for credit losses for the quarter dropped 63.2 percent to $8.1 million from $22.0 million in the year-ago quarter.
Net interest margin for the quarter increased to 3.75 percent from 3.49 percent last year.
Total deposits for the quarter fell 1.9 percent to $2.353 billion from $2.527 billion a year ago. Total net loans for the quarter decreased to $1.928 billion from $2.218 billion last year.
Delinquent loans, which are 30 to 89 days past due and still accruing, were $16.5 million, down from $23.9 million a year ago. Total net charge-offs declined to $15.5 million from $21.3 million last year.
Non-performing assets for the quarter dropped 55.5 percent year-over-year to $95.8 million or 3.57 percent of total assets from $215.3 million or 7.25 percent of total assets in the year-ago quarter. Out of the NPLs, $12.5 million is guaranteed by the Small Business Administration (SBA) and the State of California.
During the third quarter of 2011, Hanmi sold 26 NPLs valued at $30.6 million for net proceeds of $27.5 million.
HAFC is currently trading at $0.96, down $0.08 or 7.68% on the Nasdaq. Over the past year, the stock traded in a range of $0.78 - $1.74.
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