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Jun 30
Hanmi Q2 2025 Earnings Report
Hanmi reported financial results for the second quarter of 2025, with net income of $15.1 million, or $0.50 per diluted share.
Key Takeaways
Hanmi Financial Corporation delivered a solid performance in the second quarter of 2025, with net income of $15.1 million, though it decreased from the previous quarter due to higher credit loss expense. The company expanded its net interest margin to 3.07% and saw preprovision net revenue grow by 3.7%. Asset quality significantly improved, with notable declines in criticized loans, nonaccrual loans, and delinquent loans. Loans and deposits both experienced growth, and the capital position remained strong.
Net income for Q2 2025 was $15.1 million, or $0.50 per diluted share, a decrease from $17.7 million in Q1 2025, primarily due to a $7.6 million credit loss expense.
Net interest margin expanded to 3.07%, up five basis points from the previous quarter, driven by lower funding costs and increased net interest income.
Asset quality improved significantly, with criticized loans dropping 71.8% to 0.74% of total loans and nonaccrual loans falling 26.8% to 0.41% of total loans.
Total assets increased by 1.7% to $7.86 billion, and deposits grew by 1.7% to $6.73 billion, reflecting strong deposit growth and a healthy loan-to-deposit ratio of 93.7%.
Hanmi
Hanmi
Hanmi Revenue by Segment
Revenue by Segment
Commercial Real Estate Revenue
CapyFin.comResidential/Consumer Loans Revenue
CapyFin.comCommercial and Industrial Loans Revenue
CapyFin.comSBA Loans Revenue
CapyFin.comEquipment Finance Revenue
CapyFin.com Forward Guidance
Hanmi is encouraged by the strength of its loan pipeline and remains focused on deepening client relationships, expanding market presence, and leveraging its balance sheet to deliver sustainable long-term growth in the second half of the year.
Positive Outlook
- Strong loan pipeline indicates potential for continued loan growth.
- Focus on deepening client relationships is expected to drive further deposit and loan growth.
- Expansion of market presence through new branch openings aims to increase customer base.
- Leveraging the balance sheet is expected to support sustainable long-term growth.
- Continued focus on operational efficiency and managing funding costs.
Challenges Ahead
- Net income was impacted by credit loss expense in Q2 2025, which could recur.
- Potential for increased quantitative and qualitative estimated loss rates.
- Absence of gain on sale of mortgage loans in Q2 2025, impacting noninterest income.
- Increases in salaries and benefits, professional fees, and advertising expenses could pressure profitability.
- Economic uncertainties and interest rate fluctuations could impact future performance.