Led by Solid New Loan Production and 14.2% Growth in Loans Receivable
2015 Fourth Quarter and Full Year Highlights:
• Fourth quarter net income of $14.8 million, or $0.46 per diluted share; full year net income of $53.8 million, or $1.68 per diluted share.
• Fourth quarter loans receivable up 4.5%, or $138.2 million, from the third quarter and up 14.2% from a year ago.
• Fourth quarter new loan production of $268.5 million up 31.4% from a year ago; full year new loan production of $917.5 million, up 49.2% from prior year.
• Noninterest bearing deposits up 3.7% from the third quarter and 13.0% from a year ago and represent 32.9% of deposits.
• Fourth quarter net interest margin, excluding acquisition accounting, expanded to 3.62% compared with 3.48% for the third quarter and 3.24% for the year-ago period.
• Asset quality continues to be strong with non-performing assets at 0.65% of total assets; recorded a negative provision for loan losses of $3.8 million for the fourth quarter and $11.6 million for the full year.
LOS ANGELES – January 26, 2016 – Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the holding company for Hanmi Bank (the “Bank”), today reported fourth quarter net income of $14.8 million, or $0.46 per diluted share, compared with $14.0 million, or $0.44 per diluted share, for the prior quarter and $5.9 million, or $0.19 per diluted share, for the fourth quarter of 2014.
For the full year of 2015, net income was $53.8 million, or $1.68 per diluted share, up 40.2% from the prior year after adjusting for the bargain purchase gain and merger and integration costs recorded primarily in conjunction with the August 31, 2014 acquisition of Central Bancorp, Inc. (“CBI”), the parent company of United Central Bank. Net income for the full year of 2014 was $49.8 million, or $1.56 per diluted share. The prior year included an after-tax bargain purchase gain of $14.6 million, with pre-tax merger and integration costs of $6.6 million in 2014 and $2.0 million in 2015.
Mr. C. G. Kum, President and Chief Executive Officer, said, “Hanmi’s fourth quarter results were excellent and contributed to a strong year of profitable growth in 2015. For the full year, new loan production was up 49%, which led to a 14% growth in loans receivable. We continue to emphasize disciplined underwriting standards and credit quality remains very strong. In addition, the successful repositioning of our balance sheet since the CBI acquisition has improved the mix of earning assets. This helped to expand fourth quarter net interest margin, excluding acquisition accounting, to 3.62% or 14 basis points higher than the prior quarter and is an impressive accomplishment in the current environment. Furthermore, our ongoing focus on relationship-driven, high-touch business banking is driving our low cost deposit base with higher demand deposits.”
Mr. Kum continued, “Hanmi’s commitment to improving efficiencies and enhancing profitability pushed net income to $14.8 million in the fourth quarter and $53.8 million for the full year in 2015, an increase of 40% compared to the prior year after excluding the impact of merger and integration costs and accounting adjustments associated primarily with the CBI acquisition. Given our strong financial results in 2015, the Board of Directors increased the quarterly cash dividend in the fourth quarter by 27% to $0.14 per share. Overall, I am very pleased with our performance in 2015 and I believe Hanmi is well-positioned to continue generating profitable growth and capitalizing on market dislocation in the quarters and years ahead.” Click here for full report
Romolo (Ron) Santarosa
Senior Executive Vice President & Chief Financial Officer