Hanmi Financial Corporation reported a net income of $62.2 million for the fiscal year ending December 31, 2024, a decrease of 22.3% from the previous year's net income of $80.0 million. This decline was attributed to an $18.5 million decrease in net interest income, a $2.6 million drop in noninterest income, and a $4.8 million increase in noninterest expenses. The company's earnings per diluted share were $2.05, down from $2.62 in 2023. Total revenues for 2024 reached $430.4 million, compared to $403.5 million in 2023, reflecting a 6.7% increase.
The company's loan portfolio increased slightly by 1.1% to $6.25 billion as of December 31, 2024, driven by loan production of $1.19 billion, which was offset by payoffs and prepayments totaling $1.12 billion. The composition of the loan portfolio remained stable, with commercial real estate and commercial and industrial loans making up a significant portion. Deposits also rose to $6.44 billion, a 2.5% increase from $6.28 billion in 2023, primarily due to growth in non-interest-bearing demand deposits and money market accounts.
In terms of operational developments, Hanmi Financial maintained a workforce of 597 employees as of December 31, 2024, with a focus on diversity; 67% of employees were women, and 93% were minorities. The company continues to emphasize its commitment to the Korean-American and multi-ethnic communities across its operational states, which include California, Texas, and New York. The bank's strategic initiatives included a stock repurchase program, under which 369,500 shares were repurchased at an average price of $17.09 per share.
Looking ahead, Hanmi Financial expressed cautious optimism regarding its financial outlook, emphasizing the importance of maintaining adequate capital and liquidity levels to support operations. The company reported a total risk-based capital ratio of 15.24% and a Tier 1 capital ratio of 12.46%, both exceeding regulatory requirements. However, management acknowledged potential risks from economic conditions, including inflation and interest rate fluctuations, which could impact loan performance and overall profitability. The company plans to continue monitoring these factors closely as it navigates the evolving financial landscape.
About HANMI FINANCIAL CORP
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