Hanmi Financial 1Q Profit Rises, Tops Estimations

Hanmi Financial Corp

reported net income of $14.8 million for the first quarter, up 33.3% from $11.1 million. Similarly, its earnings jumped 31.4% to $0.46 a share from $0.35 a share in the year-ago quarter. The earnings results were $0.05 above than the Street analysts' expectations of $0.41 a share. Hanmi Financial said that its total interest and dividend income grew 3.0% to $42.67 million from $41.44 million in the previous year quarter. Revenue fell shy of the Street estimations of $47.76 million. The company's non-interest expenses dropped 17% YOY while net interest margin rose 40 basis points to 3.98% in the first quarter. Loans received grew 17% YOY. Hanmi Financial's President and CEO, Kum, said that "In a highly competitive environment, Hanmi continues to generate exceptional loan growth and earnings. Hanmi's record results in the first quarter were highlighted by a 55% year-over-year increase in new loan production, helping drive loans up 4% from the prior quarter and 17% from a year ago. In addition, our emphasis on core deposit cultivation has contributed to the low cost deposit base, with demand deposits reaching 34% of total deposits, up 4% from a year ago." The CEO stated further that "Ongoing success in repositioning the balance sheet is reflected in our expanding net interest margin - up 6 basis points from the prior quarter and 40 basis points from the prior year after excluding the effects of acquisition accounting. Continued focus on expense management has successfully reduced noninterest expense by $5.3 million, or 17% from a year ago. Overall, we carry significant momentum to achieve our profitable growth objectives throughout the remainder of the year." On Monday, shares of the company closed at $22.60.