Company Overview - Hanmi Financial Corporation is headquartered in Los Angeles, California, and owns Hanmi Bank, which serves multi-ethnic communities through a network of 32 full-service branches, five loan production offices, and three loan centers across several states including California, Colorado, Georgia, Illinois, New Jersey, New York, Texas, Virginia, and Washington [3] - Hanmi Bank specializes in real estate, commercial, SBA, and trade finance lending to small and middle market businesses [3] Upcoming Events - Hanmi Financial Corporation will participate in the Piper Sandler Western Bank Forum on March 10 and 11, 2025, in Marina del Rey, California [1] - Anthony Kim, Chief Banking Officer, and Ron Santarosa, Chief Financial Officer, will host one-on-one and small group meetings during the event [1] Investor Relations - A copy of the presentation for meetings with institutional investors will be available in the Investor Relations section of the company's website [2]

Core Viewpoint - Hanmi Financial Corporation has appointed Christine P. Ball to its Board of Directors, enhancing the board's expertise in banking and risk management [1][2]. Group 1: Appointment Details - Christine P. Ball's appointment is effective March 1, 2025, increasing the total number of directors to eleven [1]. - She has been assigned to the Risk, Compliance and Planning Committee, as well as the Loan and Credit Policy Committee and Asset Liability Management Committee [2]. Group 2: Background of Christine P. Ball - Ms. Ball has over 20 years of experience in corporate, commercial, and private banking [3][6]. - Her most recent role was Senior Vice President and Deputy Chief Credit Officer at City National Bank in Los Angeles, where she worked since 2013 [3][6]. - Prior to City National Bank, she held senior positions at Wells Fargo Bank and Wachovia Bank [3]. Group 3: Company Overview - Hanmi Financial Corporation is headquartered in Los Angeles, California, and owns Hanmi Bank, which operates 32 full-service branches and additional loan production offices across several states [4]. - The bank specializes in real estate, commercial, SBA, and trade finance lending to small and middle-market businesses [4].

Capital Ratios and Requirements - As of December 31, 2024, the Company's total risk-based capital ratio was 15.24%, exceeding the minimum requirements for being deemed "well-capitalized" [92] - The Bank's Tier 1 risk-based capital ratio was 13.36%, and its Common Equity Tier 1 capital ratio was also 13.36%, both surpassing regulatory requirements [92] - The Bank's capital conservation buffer was 6.43% as of December 31, 2024, indicating a strong capital position [92] - The Company and the Bank believe they met all applicable capital requirements as of December 31, 2024, but may face additional regulatory capital expectations [92] - The Bank is required to maintain a Common Equity Tier 1 capital ratio of at least 6.50% to be considered well-capitalized under prompt corrective action standards [104] Regulatory and Compliance Issues - The FDIC insures customer deposits up to $250,000 per depositor, which is crucial for maintaining depositor confidence [100] - Effective January 1, 2023, FDIC assessment rates for institutions of the Bank's size ranged from 2.5 to 32 basis points, impacting earnings [101] - The FDIC plans to implement a special assessment effective April 1, 2024, to recover losses from protecting uninsured depositors [102] - The Company's ability to pay dividends is subject to various federal and state restrictions, impacting its financial flexibility [105] - Future cash dividends from the Bank will depend on management's assessment of capital requirements and regulatory restrictions [106] - The final rule for CRA regulations will apply to banks with assets of at least $2 billion, with the majority of provisions effective from January 1, 2026 [111] - The SEC's clawback policy requires companies to recover erroneously awarded incentive-based compensation due to accounting restatements [119] - The Bank is subject to examination by the CFPB due to its asset size being below $10 billion [112] Community and Performance Assessment - The Bank was rated "Satisfactory" in meeting community credit needs under the CRA at its most recent examination [110] - The Bank's performance is influenced by the Federal Reserve's monetary policies, which affect interest rates on loans and deposits [114] Financial Position and Investments - As of December 31, 2024, the total borrowing capacity available based on pledged collateral was $1.69 billion, compared to $1.54 billion as of December 31, 2023 [113] - The Bank's investment in FHLBSF capital stock was $16.4 million as of December 31, 2024 [113] - The Bank's compliance with the FHLBSF's stock ownership requirement was confirmed as of December 31, 2024 [113] - The Company was in compliance with California board diversity requirements as of December 31, 2024 [117] Brokered Deposits - The FDIC's proposed rule on brokered deposits aims to significantly overhaul the 2020 regulations [120]

Company Overview - Hanmi Financial (HAFC) is based in Los Angeles and operates in the Finance sector, with a year-to-date share price change of 2.84% [3] - The company currently pays a dividend of $0.27 per share, resulting in a dividend yield of 4.45%, which is significantly higher than the Banks - West industry's yield of 2.77% and the S&P 500's yield of 1.53% [3] Dividend Performance - The annualized dividend of Hanmi Financial is $1.08, reflecting an 8% increase from the previous year [4] - Over the past five years, the company has increased its dividend two times year-over-year, achieving an average annual increase of 22.92% [4] - The current payout ratio for Hanmi Financial is 49%, indicating that the company distributes 49% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The earnings growth outlook for Hanmi Financial is strong, with the Zacks Consensus Estimate for 2025 projected at $2.60 per share, representing a year-over-year growth rate of 26.83% [5] Investment Appeal - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - While high-growth firms typically do not provide dividends, established companies like Hanmi Financial are viewed as attractive dividend options [7] - Hanmi Financial is recognized as a compelling investment opportunity, holding a Zacks Rank of 1 (Strong Buy) [7]

Core Viewpoint - Hanmi Financial Corporation is actively supporting the recovery efforts for communities affected by the recent wildfires in Los Angeles by hosting a disaster assistance seminar in partnership with the YMCA of LA and providing financial contributions to local organizations [1][2][4]. Group 1: Community Support Initiatives - Hanmi Financial Corporation hosted a Small Business Administration (SBA) disaster assistance seminar for various community members affected by the wildfires, providing information on available programs and application assistance [1]. - The Los Angeles County Economic Development Corporation estimates that approximately 1,860 small businesses and 11,430 jobs were potentially impacted by the wildfires [2]. - Hanmi Bank, in collaboration with the Federal Home Loan Bank of San Francisco, donated $30,000 each to the YMCA and the Korean American Federation of Los Angeles (KAFLA) to support recovery efforts [2][3]. Group 2: Statements from Leadership - Anna Chung, Chief SBA Lending Officer at Hanmi Bank, emphasized the bank's commitment to helping residents and businesses recover quickly by facilitating direct communication with SBA personnel [3]. - Joe Amato, interim president and CEO of FHLBank San Francisco, expressed gratitude to first responders and highlighted the importance of ongoing support for local organizations involved in relief and recovery efforts [4]. Group 3: Organizational Background - Hanmi Financial Corporation is headquartered in Los Angeles and operates Hanmi Bank, which serves diverse communities through a network of 31 branches and 8 loan production offices across several states [5]. - Hanmi Bank specializes in real estate, commercial, SBA, and trade finance lending to small and middle-market businesses [5].

Core Insights - Three stocks with strong momentum and buy rankings are highlighted for investors: Trustmark, Valley National Bancorp, and Hanmi Financial [1][2][3][4] Company Summaries - **Trustmark (TRMK)**: - A multi-bank holding company providing banking and financial solutions in the U.S. - Holds a Zacks Rank of 1 (Strong Buy) with a 7.6% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - Shares gained 11% over the last three months, outperforming the S&P 500's 5.6% gain, and has a Momentum Score of A [2] - **Valley National Bancorp (VLY)**: - A bank holding company offering commercial, retail, insurance, and wealth management services. - Also holds a Zacks Rank of 1 with an 8.8% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2] - Shares gained 11% over the last three months, matching Trustmark's performance and has a Momentum Score of A [3] - **Hanmi Financial (HAFC)**: - A leading bank serving multi-ethnic communities in Southern California. - Holds a Zacks Rank of 1 with a significant 29.4% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - Shares gained 7.2% over the last three months, slightly below the S&P 500's performance, and has a Momentum Score of B [4]

Group 1: Embotelladora Andina (AKO.B) - The company produces and distributes Coca-Cola products in Chile, Brazil, and Argentina [1] - The Zacks Consensus Estimate for its current year earnings has increased by 12% over the last 60 days [1] - The company has a Zacks Rank of 1 (Strong Buy) and a dividend yield of 6.1%, significantly higher than the industry average of 0.0% [1] Group 2: Valley National Bancorp (VLY) - This bank holding company offers various commercial, retail, insurance, and wealth management financial services products [2] - The Zacks Consensus Estimate for its current year earnings has increased nearly 8.8% over the last 60 days [2] - The company has a Zacks Rank of 1 and a dividend yield of 4.3%, compared to the industry average of 2.6% [2] Group 3: Hanmi Financial (HAFC) - The company operates as a business bank providing services to multi-ethnic communities in Southern California [3] - The Zacks Consensus Estimate for its current year earnings has increased nearly 5.3% over the last 60 days [3] - The company has a Zacks Rank of 1 and a dividend yield of 4.2%, which is higher than the industry average of 2.7% [3]

Financial Data and Key Metrics Changes - Net income for 2024 reached $62.2 million or $2.05 per diluted share, with a return on average assets of 0.83% and return on average equity of 7.97% [12] - Net interest income increased by 6.8% to $53.4 million, and net interest margin increased by 17 basis points to 2.91% [37] - Nonperforming assets as a percentage of total assets improved to 0.19%, and the allowance for credit losses remains healthy at 1.12% [18][42] Business Line Data and Key Metrics Changes - The C&I portfolio increased by 16%, driven by the USKC initiative and new relationships [13] - C&I production for the fourth quarter was $60 million, a decrease of 43% from the prior quarter, but for the full year, it increased by 50% to $275 million [31] - Residential mortgage production was $40 million for the fourth quarter, with a total of $88.4 million in residential mortgage loans sold into the secondary market throughout the year [32][14] Market Data and Key Metrics Changes - Deposits grew by 2.5% in 2024, driven by a 4.6% increase in noninterest-bearing deposits, which now account for 32.6% of total deposits [14] - Corporate Korea deposits represented 13% of total deposits and 16% of total demand deposits [35] - The mix of noninterest-bearing deposits increased from 32% to 33% during the fourth quarter [35] Company Strategy and Development Direction - The company focuses on expanding its core deposit base, targeting deposit-rich business verticals, and entering new markets [46] - The Corporate Korea initiative is a core growth strategy, with a 23% increase in the USKC loan portfolio, now representing 15% of the total loan portfolio [16] - The company plans to continue optimizing its branch network, including consolidating branches and opening new ones in strategic locations [19][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth strategy and commitment to delivering shareholder value, with a focus on generating low to mid-single-digit loan growth [23][24] - The company aims to maintain discipline in credit administration and asset quality while pursuing growth opportunities [18][24] - Management acknowledged the competitive landscape for deposits but emphasized the relationship banking model as a key differentiator [50] Other Important Information - The board approved an 8% increase in the quarterly dividend to $0.27 per share, reflecting confidence in the growth strategy [23] - Investments in digital systems, including a new loan origination system, are expected to drive operational efficiencies and improve profitability over time [21] Q&A Session Summary Question: How's the competitive landscape for deposits looking? - Management noted that deposit competition is fierce, but they do not aim to be the pricing leader, focusing instead on relationship banking [50] Question: What is the rate for CDs rolling off versus coming on? - Approximately $770 million of CDs are rolling off at 4.70%, with the previous quarter being just under $1 billion at 5.04%, and they expect to reprice at 4.02% [52] Question: What is the overall exposure to SBA in the portfolio? - The company has approximately $250 million of SBA exposure, with about $160 million tied to real estate [59] Question: What are the expectations for loan growth in the first quarter? - Management projected low-to-mid-single-digit growth for the year, with payoffs impacting net loan growth [75] Question: How should further share repurchases be modeled? - Future repurchases will depend on market performance and opportunities that may arise [80]

Core Insights - Hanmi Financial (HAFC) reported revenue of $60.81 million for the quarter ended December 2024, reflecting a year-over-year increase of 1.7% but a revenue surprise of -0.97% compared to the Zacks Consensus Estimate of $61.4 million [1] - The earnings per share (EPS) for the quarter was $0.58, down from $0.61 in the same quarter last year, but exceeded the consensus EPS estimate of $0.53 by 9.43% [1] Financial Performance Metrics - Efficiency Ratio stood at 56.8%, better than the three-analyst average estimate of 58.2% [4] - Net interest margin was reported at 2.9%, matching the three-analyst average estimate [4] - Average balance of total interest-earning assets was $7.32 billion, slightly below the $7.45 billion average estimate from two analysts [4] - Net loan charge-offs to average loans were 0%, outperforming the two-analyst average estimate of 0.2% [4] - Total non-interest income was $7.36 million, lower than the three-analyst average estimate of $8.17 million [4] - Net interest income reached $53.45 million, exceeding the $52.90 million average estimate from two analysts [4] - Service charges on deposit accounts were $2.19 million, slightly above the two-analyst average estimate of $2.17 million [4] - Other operating income was $2.36 million, below the $3.06 million average estimate from two analysts [4] - Trade finance and other service charges and fees totaled $1.36 million, surpassing the two-analyst average estimate of $1.14 million [4] Stock Performance - Over the past month, shares of Hanmi Financial have returned -1.9%, contrasting with the Zacks S&P 500 composite's increase of +0.8% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Hanmi Financial reported quarterly earnings of $0.58 per share, exceeding the Zacks Consensus Estimate of $0.53 per share, but down from $0.61 per share a year ago, indicating a 4.92% year-over-year decline in earnings [1][2] Financial Performance - The company posted revenues of $60.81 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.97%, and showing a slight increase from $59.82 million year-over-year [2] - Over the last four quarters, Hanmi Financial has surpassed consensus EPS estimates only once [2] Stock Performance - Hanmi Financial shares have decreased by approximately 2.5% since the beginning of the year, while the S&P 500 has gained 2.2% [3] - The current Zacks Rank for Hanmi Financial is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.54 on revenues of $62.05 million, and for the current fiscal year, it is $2.28 on revenues of $260.15 million [7] - The trend of estimate revisions for Hanmi Financial has been unfavorable leading up to the earnings release [6] Industry Context - The Banks - West industry, to which Hanmi Financial belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a favorable industry outlook [8]