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Dec 31, 2019
Hanmi Q4 2019 Earnings Report
Hanmi reported a decrease in net income due to a specific provision for loan losses, but experienced strong loan and lease production growth and an improved deposit mix.
Key Takeaways
Hanmi Financial Corporation reported a net income of $3.1 million for Q4 2019, which included a $6.9 million specific provision for loan and lease losses. Despite this, the company saw significant growth in loan and lease production and an improvement in deposit mix.
Net income for Q4 2019 was $3.1 million, or $0.10 per diluted share, compared to $11.4 million, or $0.37 per diluted share for Q4 2018.
Total loan and lease production volume increased by more than 75% from the prior quarter and nearly 55% from the fourth quarter last year.
Net interest margin was 3.32% for the fourth quarter of 2019.
The allowance for loan and lease losses was $61.4 million as of December 31, 2019, generating an allowance for loan and lease losses to loans and leases of 1.33% compared with 1.11% in the prior quarter.
Forward Guidance
Hanmi is well-positioned to deliver profitable growth throughout 2020 due to its strong deposit franchise and loan and lease pipeline.
Positive Outlook
- Strong deposit franchise
- Robust loan and lease pipeline
- Potential for profitable growth
- Well-capitalized for regulatory purposes
- Stock repurchase program in place
Challenges Ahead
- Uncertainty regarding the resolution of the troubled loan relationship
- Potential for continued pressure on loan yields
- Exposure to risks associated with Small Business Administration loans
- Dependence on key employees
- Vulnerability to cyber security threats
Historical Earnings Impact
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Avg. Return Before/After Earnings
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