Earnings call transcript: Hanmi Financial beats Q3 2025 estimates, shares rise

Hanmi Financial Corporation (NASDAQ:HAFC), a $731 million market cap regional bank with a notable 4.6% dividend yield and 13 consecutive years of dividend payments, reported third-quarter earnings that surpassed Wall Street expectations. The company posted earnings per share (EPS) of $0.73, exceeding the forecast of $0.65, representing a 12.3% surprise. Revenue reached $70.96 million, also surpassing the anticipated $67.8 million. Following the announcement, Hanmi’s stock price increased by 1.62% in after-hours trading, closing at $24.10.

InvestingPro analysis reveals several additional insights about Hanmi’s performance, with 5 more exclusive ProTips available to subscribers.

Key Takeaways

• Hanmi Financial’s EPS and revenue exceeded forecasts, marking a strong quarter.
• The company’s stock rose by 1.62% in after-hours trading.
• Loan production saw significant growth, particularly in Commercial & Industrial lending.
• Efficiency ratio improved to a two-year low of 52.65%.
• Hanmi expects continued loan growth and deposit cost reductions.

Company Performance

Hanmi Financial demonstrated robust performance in Q3 2025, with net income rising to $22.1 million from $15.1 million in the previous quarter. The company’s focus on expanding its US Korean Companies initiative and increasing loan production, particularly in Commercial & Industrial (C&I) lending, contributed to this growth. The C&I loan production surged by 296% to $211 million, reflecting the company’s strategic emphasis on this sector.

Financial Highlights

• Revenue: $70.96 million, up from the $67.8 million forecast
• Earnings per share: $0.73, compared to the forecast of $0.65
• Net interest margin: 3.22%, a 15 basis point increase
• Return on average assets: 1.12%
• Return on average equity: 10.69%

Earnings vs. Forecast

Hanmi Financial’s actual EPS of $0.73 exceeded the forecast of $0.65, resulting in a 12.3% surprise. This performance indicates a positive trend compared to previous quarters, highlighting the company’s ability to surpass market expectations consistently.

Market Reaction

Following the earnings announcement, Hanmi’s shares rose by 1.62% in after-hours trading, reflecting investor confidence in the company’s strong quarterly performance. The stock has demonstrated robust momentum with a 22% return over the past year and a 2.2% gain year-to-date. The stock’s current price of $24.10 remains within its 52-week range, with a high of $27.59 and a low of $19.25. With a beta of 0.69, the stock has shown lower volatility compared to the broader market.

Outlook & Guidance

Looking forward, Hanmi Financial anticipates mid-single-digit loan growth for 2025 and expects to continue reducing deposit costs. The company is also preparing for potential Federal Reserve rate cuts, which could impact its financial strategies. Hanmi remains focused on expanding its presence in the Korean market and enhancing its relationship banking model.

Executive Commentary

"We are proud of the momentum we have built so far in 2025," said Bonnie Lee, CEO of Hanmi Financial. CFO Ron Santarosa added, "We believe we can be disciplined in our deposit costs," highlighting the company’s strategic focus on cost management.

Risks and Challenges

• Potential interest rate changes could impact loan and deposit strategies.
• Competitive pressures in the banking sector may affect market share.
• Economic uncertainties in the Korean market could influence expansion plans.
• Regulatory changes might pose compliance challenges.
• Fluctuations in loan demand could affect growth projections.

Q&A

During the earnings call, analysts inquired about Hanmi’s loan growth potential and the strength of its pipeline. The company addressed improvements in credit quality and explored funding strategies amid deposit competition. Additionally, Hanmi confirmed its ongoing share repurchase strategy, reflecting confidence in its long-term growth prospects.

Full transcript - Hanmi Financial Corporation (HAFC) Q3 2025:

Conference Operator: Ladies and gentlemen, welcome to the Hanmi Financial Corporation’s Third Quarter twenty twenty five Conference Call. As a reminder, today’s call is being recorded for replay purposes. I would now like to turn the call over to Ben Brokowitz, Investor Relations for the company. Please go ahead, sir.

Ben Brokowitz, Investor Relations, Hanmi Financial Corporation: Thank you, operator, and thank you all for joining us today to discuss Omni’s third quarter twenty twenty five results. This afternoon, Omni issued its earnings release and quarterly supplemental slide presentation to accompany today’s call. Both documents are available in the IR section of the company’s website at hominy.com. I’m here today with Bonnie Lee, President and Chief Executive Officer of Hominy Financial Corporation Anthony Kim, Chief Banking Officer and Ron Santarosa, Chief Financial Officer. Bonnie will begin today’s call with an overview.

Anthony will discuss loans and deposit activities. Ron will provide details on our financial performance and then Bonnie will provide closing comments before we open the call up for your questions. Before we begin, I would like to remind you that today’s comments may include forward looking statements under the federal securities laws. Forward looking statements are based on current plans, expectations, events and financial industry trends that may affect the company’s future operating results and financial position. Our actual results may differ materially from those contemplated by our forward looking statements, which involve risks and uncertainties.

A discussion of the factors that could cause our actual results to differ materially from these forward looking statements can be found in our SEC filings, including our reports on Form 10 ks and 10 Q. In particular, we direct you to the discussion of certain risk factors affecting our business contained in our earnings release, our investor presentation and in our Form 10 Q. With that, I would now like to turn the call over to Bonnie Lee. Bonnie, please go ahead.

Bonnie Lee, President and Chief Executive Officer, Hanmi Financial Corporation: Thank you, Ben. Good afternoon, everyone. Thank you for joining us today to discuss our third quarter twenty twenty five results. I am proud of our team’s outstanding performance this quarter, which continued to advance the momentum we have been building throughout the year. We delivered a strong growth in net interest income, driven by improved margins and further expansion of our loan portfolio.

Commercial loans were a key contributor of our total loan production. This performance reflects continued investment in our commercial lending teams, the success of the USKC initiative and strategic expansion into new markets. The strength of our deposit base in supporting our loan growth was further enhanced by these investments with a consistent activity across all categories. Most importantly, we further improved our outstanding asset quality with the reductions in current size and non performing loans. These results underscore our commitment to comprehensive loan portfolio management and the strong credit culture that we have fostered at Hopme.

Now, let me review some key highlights of the quarter. Net income for the third quarter was $22,100,000 or zero seven three dollars per diluted share compared to $15,100,000 and $0.50 respectively in the second quarter. The increase in net income was primarily due to higher net interest income and a decrease in credit loss expense. Return on average assets was 1.12 and return on average equity was 10.69%. Pre provision net revenues increased sixteen point four percent $4,700,000 demonstrating the strength of our core business.

Net interest margin in the quarter expanded by 15 basis points to 3.22, driven by higher average yields and loans and lower funding costs on a linked quarter basis. As I just mentioned, asset quality remains excellent improving from the second quarter due to our proactive portfolio management with the reductions in criticized loans and non performing assets. In addition, we have seen a meaningful reduction in net charge offs. This improvement is a reflection of our deliberate and ongoing focus on credit as well as collections. Total loans increased to 6,530,000,000.00 or 3.5% on a linked quarter basis with a significant increase in loan production, which was up 73% to $571,000,000 The recent investment we made to expand our C and I banking teams helped drive a strong loan production during the third quarter with a $211,000,000 in new C and I loans across the diverse industries.

As I have noted previously, C and I remains the key strategic priority to growing the Harmony franchise. Deposits increased by 0.6% in the third quarter or 2.2% annualized driven by new commercial accounts and our expansion into new markets. This growth highlights our ability to consistently build new customer relationships while deepening existing ones. Non interest bearing demand deposits were stable at approximately 31% of total deposits. We continue to judicially manage our noninterest expense.

These efforts are reflected in our improving operating leverage as our efficiency ratio declined to a two year low of a 52.65%. Turning now to our corporate career initiative. During the third quarter, we continued to add new relationships and expand existing ones with The US subsidiaries of Korean companies. Both US KC loan and deposit portfolios experienced healthy growth in the quarter, reaching the mid teens as a percentage of total loans and deposits. While the current macro environment continues to evolve, we are excited about the long term growth potential of our USKC initiative.

In late September, I led a delegation of a Hong Kong executives on a trip to Korea, where we were invited to present an economic forums and participate in several business conferences to share insights with the Korean companies interested in expanding into US. It was a great opportunity to connect directly with so many Korean business leaders to learn about their ambitions and better understand their needs. At the same time, we were able to introduce them to Hummibank and the proven expertise our teams have in helping companies execute on their U. S. Expansion plans.

As we look forward to the fourth quarter, Hanmi is well positioned to maintain our strong momentum of the third quarter as we execute our key strategic initiatives and priorities, which include driving loan growth in the mid single digit range up from our previous forecast of a low to mid single digit growth, further scaling our C and I, residential, and SBA loan portfolios, broadening our core deposit base, strengthening and establishing new relationships within key markets, capitalizing on our solid liquidity position and maintaining solid credit metrics, which reinforce our position as a well capitalized institution and sustaining our enhanced asset quality through a proactive portfolio oversight and disciplined credit management. When I looked at our performance through the first nine months of the year, I am pleased with our results, which demonstrates continued execution of our growth strategy. Year to date loans have grown 4.4%, pre provision net revenues have increased 35% and net interest margin is 37 basis points higher compared to 2024. These are outstanding results and our team remains focused on continuing to drive this momentum for a strong finish to 2025. I’ll now turn the call over to Anthony Kim, our Chief Banking Officer to discuss the third quarter loan production and deposit in details.

Anthony Kim, Chief Banking Officer, Hanmi Financial Corporation: Andy? Thank you, Bonnie, and thank you all for joining us today. I’ll begin by providing additional details on our loan production. Third quarter loan production was $571,000,000 up $241,000,000 or 73% from the prior quarter with a weighted average interest rate of 6.91% compared to 7.1% last quarter. As Bonnie mentioned, the increase in loan production was primarily due to a significant increase in C and I originations as well as growth in CRE and residential production.

Our commitment to strong underwriting practices ensures we only pursue opportunities that meet our high quality standards. CRE production was $177,000,000 up 58% from the prior quarter, and we remain pleased with the quality of our CRE portfolio. It has a weighted average loan to value ratio of approximately 47.7% and a weighted average debt service coverage ratio of 2.2 times. SBA loan production decreased slightly from the prior quarter to approximately $45,000,000 but was still within our quarterly target range. This consistent production highlights the positive impact of our recent new additions and the momentum we’re building among small businesses across our markets.

During the quarter, we sold approximately $32,600,000 of SBA loans and recognized a gain of $1,900,000 during the quarter. C and I production reached $211,000,000 during the third quarter, an increase of $158,000,000 or 296%. The increase was primarily driven by continued investment in our C and I teams, the momentum of our USKC initiative and our strategic efforts to further expand the portfolio. Total commitments for our commercial lines of credit remain healthy at over $1,300,000,000 in the third quarter, up 5% or 22% on an annualized basis. Outstanding balances increased by 9%, resulting in a utilization rate of 39%, slightly higher compared to the prior quarter.

Residential mortgage loan production was $103,000,000 for the third quarter, up 23% from the previous quarter, primarily due to increased volume from our correspondent lenders. Residential mortgage loan represent approximately 16% of our total loan portfolio, consistent with the previous quarter. We sold $67,800,000 of residential mortgages during the third quarter. This resulted in a gain on sale of $1,200,000 We’ll continue to explore additional sales based on market conditions. USKC loan balances increased by 8.2% to $910,000,000 representing approximately 14% of our total loan portfolio.

Turning to deposits. In the third quarter, deposits were up 0.6% from the prior quarter, driven by new commercial accounts and the contributions from our new branches. Deposit balances for USKC customers increased by 9.5% reaching over $1,000,000,000 for the first time. Our team is making good progress adding new relationships that we believe can grow over time. At quarter end, corporate credit deposit represented 15% of our total deposits and 17% of our demand deposits.

The composition of our deposit base remains stable, which reflects the success of our relationship banking model. During the third quarter, our mix of noninterest bearing deposits remained healthy at approximately 31% of total bank deposits. Now I’ll hand the call over to Ron Santarosa, our Chief Financial Officer, for more details on our third quarter financial results.

Ron Santarosa, Chief Financial Officer, Hanmi Financial Corporation: Good afternoon all, and thank you, Anthony. As Bonnie noted, pre provision net revenue for the third quarter increased 16.4% from the second quarter, reflecting growth in net interest income, margin, non interest income and well managed non interest expense. Focusing on each component of PPNR, net interest income was $61,100,000 and grew 6.9% from the second quarter. Net interest margin also improved 15 basis points to 3.22. The growth in net interest income was principally due to interest rates where we saw average loan yields for the quarter increased by 10 basis points and average rates paid on interest bearing deposits decreased by eight basis points.

To a lesser extent, this growth also benefited from a 1% increase in average interest earning assets and one additional day for the quarter. We also had a recovery of interest of $600,000 from a previously charged off loan, which contributed four basis points to the third quarter average yield on loans and three basis points to the net interest margin. Looking at the 15 basis point increase in the net interest margin, we saw a six basis point improvement from higher loan yields, inclusive of the three basis point benefit from the interest recovery, a four basis point benefit from lower rates on interest bearing deposits, and a five basis point benefit from the combination of higher yields on other interest earning assets and lower rates paid on other interest bearing liabilities. Notably, the average loan to deposit ratio for the third quarter was 94.6%, down from 95.4 for the second quarter. Omni adjusted its interest rates on deposits when the Fed lowered the federal funds rate by 25 basis points.

Focusing on our savings and money market accounts, the third quarter average rate paid on these accounts fell eight basis points from the second quarter. Looking at our October month to date average rate paid on these same accounts, the rate on these deposits is down 23 basis points from the third quarter average rate of 3.22%. And the month to date average rate paid on all interest bearing deposits is down 11 basis points from the third quarter average rate of 3.56%. Noninterest income for the third quarter was $9,900,000 22.4% above the second quarter. The increase primarily reflects the absence of gains from the sales of residential mortgages in the second quarter and a higher level of bank owned life insurance death benefits realized in the third quarter.

Bank owned life insurance policy income for the third quarter included $900,000 from death benefits, while the second quarter included $400,000 Gains from the sales of residential mortgages were $1,200,000 for the third quarter, while there were no sales for the second quarter. Noninterest expense before OREO and repossessed personal property expenses increased 1.5% quarter over quarter, primarily from higher professional data processing and occupancy expenses. OREO and repossessed personal property expenses swung to a net charge of $49,000 for the third quarter from a net benefit of $398,000 for the second quarter due to a gain from the sale in that quarter of an Elario property. Reflecting higher revenues, the efficiency ratio for the third quarter moved lower to 52.65% from 55.74%. Turning now to the credit loss expense for the third quarter, which was down $5,500,000 quarter over quarter to $2,100,000 for the third quarter from $7,600,000 for the second quarter.

In the third quarter, Company collected $2,600,000 from a previously charged off loan recognized as a $2,000,000 loan loss recovery and a $600,000 credit to interest income. This loan loss recovery led to net loan recoveries of $500,000 for the third quarter compared to net loan charge offs of $11,400,000 for the second quarter. The ratio of the allowance for credit losses to loans ended the third quarter at 1.07%, reflecting an increase in our qualitative loss factors. Capital ratios remained strong with the company’s preliminary common equity Tier one ratio at 12% and the tangible common equity to tangible asset ratio at 9.8% at the end of the third quarter. In addition to third quarter dividends of $0.27 paid to shareholders, Omni also repurchased 199,698 common shares at a weighted average price of $23.45 I’ll now turn the call back to Bonnie for her concluding remarks.

Bonnie?

Bonnie Lee, President and Chief Executive Officer, Hanmi Financial Corporation: Thank you, Ron. We are proud of the momentum we have built so far in 2025 and remain optimistic about the compelling long term growth opportunities that Biohat. Our client focused strategy and relationship driven banking model empower our team to provide excellent service and forward thinking industry leading solutions. Along with our ongoing emphasis on prudent expense control and strong asset quality, we remain committed to growing the Harmony franchise and building enduring value for our shareholders. Thank you.

We’ll now open the call to answers to your questions. Operator, please open up the line. Thank

Conference Operator: you. We will now be conducting a question and answer session.

Anthony Kim, Chief Banking Officer, Hanmi Financial Corporation: Session.

Conference Operator: One moment while we poll for questions. And our first question, we’ll hear from Kelly Motta with KBW.

Kelly Motta, Analyst, KBW: Hey. Good afternoon. Thanks for the question. Great quarter. Maybe kicking it off with loan growth.

I mean, was super strong in Q3. You guys have highlighted the work that you’ve done with C and I, and now you’re looking for mid single digit growth. Wondering if that’s like for the full year. It doesn’t seem like you need to get much in in q four in order to hit mid single digit growth. So wondering if there’s any pull forward that we should be thinking of.

And just from a go forward basis, given, you know, the investments you’ve made in the team and, you know, the strength you’ve been seeing if, you know, maybe a bit higher is a is a good run rate going going forward? I know there’s multiple parts in that, so maybe I’ll stop there. Thanks.

Bonnie Lee, President and Chief Executive Officer, Hanmi Financial Corporation: Sure, Kelly. Let me try to answer your question in different steps. Net loan growth is a function of production and actually, you know, another part is the payoffs. So, you know, we provide the guidance of mid single digit loan growth for the year is that we really do not know what the payoffs are going to be in the 4Q. But knowing just on the pipeline, you know, we are looking at a similar pipeline as going in in the third q.

But what was unique in third q was, you know, we actually ended up booking new loans higher than the initial pipeline. So we had built the pipelines throughout the third Q. So that was one of the reasons that we had a very strong production. So in terms of, you know, the teams that we had we’re able to brought on, so it’s, you know, a couple of teams and we’ve been actually communicating this and we’ve been investing for the last couple of quarters. So, focusing on the C and I lending efforts, the production came in from very broadly diversified industries, including manufacturing, as well as the USKC automotive suppliers.

So with all these putting together, we are hopeful that we can deliver the mid single digit growth for the year.

Kelly Motta, Analyst, KBW: Okay. That’s that’s helpful. And then, I mean, maybe switching to credit after last quarter’s sort of anomaly, it seems like things have been well controlled. You had the net recovery. Obviously, there’s been some credit noise just more broadly this quarter.

Just wondering from a high level what you’re seeing, what you’re watching more carefully and any update or change in terms of how you guys are thinking about the asset quality picture ahead?

Bonnie Lee, President and Chief Executive Officer, Hanmi Financial Corporation: So, you know, we’ve been actually very comprehensive and consisting, you know, consistent on looking at our loan portfolio and managing. So, you know, best way to do it is you have to slice and dice the portfolio. Any possible problematic loans, we need to usher them out. So that’s one of the reason that we keep very clean asset quality. And during the Q, part of the payoffs actually were some of the loans that we did not want to retain.

So we had communicated to the borrower, given them much of a time for them to refi us off or pay us off. So that’s one of the practices that we’ve been consistent. And obviously, given this environment, we look at our mortgage loans and SBA loans, really focused on looking at them. In terms of just looking at the trend, it’s very, very consistent and actually very satisfactory trend on the both of those loan categories.

Kelly Motta, Analyst, KBW: Got it. Maybe last question for me, and then I’ll step back is just on the funding side, given how strong loan growth was that did push the loan to deposit ratio on an EOP basis up to about 97%. Just wondering if you could refresh us on how you guys think are thinking about funding and the balance sheet going forward. Is deposit growth needed for additional loan growth and a constraining factor there? Thanks.

Ron Santarosa, Chief Financial Officer, Hanmi Financial Corporation: Sure, Kelly. So, yes, so when look at the third quarter, again, I look at the averages because that’s what kind of drives the quarter. And so you can see the average loan to deposit much lower than where we were. So we had what I would characterize as balance sheet utilization that helped propel the earnings and also avoid up the net interest margin. Starting with the spot balances, as you pointed out, we’re a little bit richer.

Loan balances are above our averages, so I can see that growth there. So we will need deposit growth to keep the margin expanding, let’s say, a higher pace than what we’ve experienced. When I look at the funding side, that is deposits, you can see that our deposit costs are moving down nicely. We’re anticipating that there will be a 25 basis point move by the Fed next week and likely another 25 in December. So I can really foresee that the cost of average interest bearing deposits will continue to step down nicely.

What I can’t see is clearly because it’s the vectors depending on our loan growth as well as overall deposit growth is how much do we need to look to borrowed funds which have a higher marginal cost. So that can dampen the growth in net interest margin, but I don’t see it negating growth. I just can’t tell you how much it might grow.

Hammad Hassan, Analyst, DA Davidson: Thanks, Ron. That’s helpful. I’ll step back.

Bonnie Lee, President and Chief Executive Officer, Hanmi Financial Corporation: Thank you.

Hammad Hassan, Analyst, DA Davidson: And our next question will come from Matthew Clark with Piper Sandler.

Adam Crowell, Analyst, Piper Sandler: Hi. This is Adam Crowell on for Matthew Clark, and thank you for taking my questions. Sure. Yeah. So maybe just to start on the funding side.

So I really appreciate the average rates provided for October. And I was just curious, do you expect to reduce deposits at a similar pace to what you disclosed for October, which with each subsequent rate cut? And do you feel you can achieve a downward deposit beta near the 70% that you disclosed in the deck since last August?

Ron Santarosa, Chief Financial Officer, Hanmi Financial Corporation: Well, for the September rate decline, I think we did we to be very specific, Anthony and team did a very good job at reducing our rates. So I feel very comfortable that the team will do the same when we get to next week. Of course, it still remains, you know, to be learned how the marketplace reacts, which is another buffering factor. But we believe we can be disciplined in our deposit costs and be more like, say, an average traditional community bank in that arena. So I’ll stay optimistic that we’ll be achieving betas that are very reasonable relative to potentially a 50 basis point decline over the next couple of months.

What we can’t see well, and Bonnie alluded it to a little bit, is that loan growth, we expect it to be favorable. We can’t necessarily see prepays too well, because I can start to envision that as rates fall, there may be competition for assets at prices perhaps lower than what might be reasonable in a marketplace. And then to make myself happy, I’ll look at my time book and said, okay, I have almost twothree of that book repricing over the next two quarters. That average rate is at 4%, so I know I’ll pick up something there. So altogether, and to kind of argue on both sides of pluses and minuses, I still think there’s an opportunity for margin to expand.

I just can’t wager yet by how much, given what we might be facing in the deposit arena and what we might be facing in the lending arena.

Adam Crowell, Analyst, Piper Sandler: Got it. No, that’s super helpful. So kind of going off of that, would you be able to speak to what you’re seeing in terms of competition on the lending side? And have you seen any sort of compressing of spreads in that regard?

Anthony Kim, Chief Banking Officer, Hanmi Financial Corporation: Yeah. We do see competition coming in, especially in CRE area, for lower rates. But we do selectively compete on the particular loans. So we don’t I mean, with the rates coming down, I mean, we naturally see those competition And the deposit side as well, despite the Fed cut in September, I think our competition still is very competitive on CD pricing. So, we do see competition coming in, loans and deposits, but I think it’s manageable.

Adam Crowell, Analyst, Piper Sandler: Got it. I appreciate the color there. If I could squeeze one more in, just on capital, do you expect to remain active on share repurchases given your healthy capital levels?

Ron Santarosa, Chief Financial Officer, Hanmi Financial Corporation: Yes, as I mentioned in prior calls, so the Board will look at the repurchase each and every quarter. Last quarter, the marketplace gave us some tremendous opportunities. I think the Board did an excellent job in taking advantage of that. So we’ll look at it again. But I do think you should anticipate repurchases each quarter.

It’s just the order of magnitude will always be the question on the table.

Adam Crowell, Analyst, Piper Sandler: Got it. Thank you for taking my questions.

Bonnie Lee, President and Chief Executive Officer, Hanmi Financial Corporation: Thank you.

Conference Operator: Next, we’ll hear from Hammad with DA Davidson.

Hammad Hassan, Analyst, DA Davidson: Hammad Hassan on for Gary Tanner here. Great quarter. Nice to see the fee income increase from the mortgage loan sales. Noticed that you guys weren’t active on that in last quarter. So is that something that could potentially continue in the next couple of quarters?

Or is that something that will normalize?

Ron Santarosa, Chief Financial Officer, Hanmi Financial Corporation: Yes. As we tried to point out when we met last quarter, the sale that would have occurred in the second quarter was delayed just a bit. So it happened early in the third quarter. But on a go forward basis, we do anticipate each quarter to have gains from the sales of residential mortgages, again, depending on market conditions. But yes, every quarter we should have something.

Anthony Kim, Chief Banking Officer, Hanmi Financial Corporation: Right. And

Hammad Hassan, Analyst, DA Davidson: I don’t As know if you remember

Ron Santarosa, Chief Financial Officer, Hanmi Financial Corporation: we disclosed, there was about a $900,000 gain, I think, in July that would have you could kind

Ben Brokowitz, Investor Relations, Hanmi Financial Corporation: of then take a look

Ron Santarosa, Chief Financial Officer, Hanmi Financial Corporation: at that differential and you can try to find a normal run rate.

Hammad Hassan, Analyst, DA Davidson: Okay. That’s great color. And maybe as you guys were talking about the corporate career initiatives, And Bonnie mentioned that she met a bunch of clients there. Any update on the just the general business sentiment over there?

Bonnie Lee, President and Chief Executive Officer, Hanmi Financial Corporation: Yes. So expansion into U. S. Market, U. S.

As well as North America, there are tremendous focus from the particularly mid sized businesses in Korea. So the trip that we had in September, gave us a great opportunity to introduce banking in The United States 01/2001. So that was really well received. And we did learn, you know, Korea as a country has a potential of about small and medium sized business of about 8,000,000. So that’s why I think that we are, you know, continues to be optimistic in The US KC business.

Hammad Hassan, Analyst, DA Davidson: That’s great to hear. And then maybe the last one for me. Can you remind me about your NDFI exposure?

Ron Santarosa, Chief Financial Officer, Hanmi Financial Corporation: Oh, it’s very, very small. I I I less than just just less than 1% or thereabouts.

Hammad Hassan, Analyst, DA Davidson: Yes, that’s what I figured. And thank you, guys.

Bonnie Lee, President and Chief Executive Officer, Hanmi Financial Corporation: Thank you.

Conference Operator: Thank you. We have no further questions in the queue at this time. I’ll now turn the call back to Ms. Bonnie Lee for concluding remarks.

Bonnie Lee, President and Chief Executive Officer, Hanmi Financial Corporation: Thank you for participating in today’s call. We value your interest in Hanmi and look forward to keeping you informed of our progress and results.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.