HANMI FINANCIAL CORPORATION 4Q21 Earnings
Supplemental Presentation
January 25, 2022
1
Forward-Looking Statements
Hanmi Financial Corporation (the "Company") cautions investors that any statements contained herein that are not historical facts are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, those statements regarding operating and financial performance, financial position and liquidity, business strategies, regulatory, economic and competitive outlook, investment and expenditure plans, capital and financing needs and availability, litigation, plans and objectives, merger or sale activity, the effects of COVID-19 on our business, financial condition and results of operations, and all other forecasts and statements of expectation or assumption underlying any of the foregoing. These statements involve known and unknown risks and uncertainties that are difficult to predict. Investors should not rely on any forward-looking statement and should consider risks, such as changes in governmental policy, legislation and regulations, economic climate uncertainty, fluctuations in interest rate and credit risk, competitive pressures, the ability to succeed in new markets, balance sheet management, the ability to identify and remediate any material weakness in internal controls over financial reporting, and other operational factors.
Further, given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 pandemic on our business, financial condition and results of operations. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated. As the result of the COVID- 19 pandemic and the related adverse local and national economic consequences, we could be subject to various risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations.
Forward-looking statements are based upon the good faith beliefs and expectations of management as of this date only and are further subject to additional risks and uncertainties, including, but not limited to, the risk factors set forth in our earnings release dated January 25, 2022, including the section titled "Forward Looking Statements and the Company's most recent Form 10-K,10-Q and other filings with the Securities and Exchange Commission ("SEC"). Investors are urged to review our earnings release dated January 25, 2022, including the section titled "Forward Looking Statements and the Company's SEC filings. The Company disclaims any obligation to update or revise the forward-looking statements herein.
2
4Q21 Highlights
Net Income | Diluted EPS | ROAA | ROAE | NIM Efficiency Ratio TBVPS* | ||
$33.3M | $1.09 | 1.93% 20.89%2.96% 53.81% $20.79 | ||||
- Net income of $33.3 million, or $1.09 per diluted share, up 25.5% from $26.6 million, or $0.86 per diluted share, from the prior quarter and up 132.7% from $14.3 million, or $0.47 per diluted share, for the 2020 fourth quarter
- Net interest income was $49.5 million; net interest margin of 2.96%
- Noninterest income decreased 25.7% from the prior quarter to $9.3 million on lower levels of SBA gains
- Noninterest expense of $31.6 million decreased 2.7% from the previous quarter on lower insurance premiums
- Efficiency ratio was 53.81% compared with 52.01% for the prior quarter
- Loans receivable of $5.15 billion increased 6.0% from the prior quarter; excluding PPP loans*, up 6.4% from the prior quarter
- Loan production reached a record $625.1 million with growth in all major loan categories; loan production for the full year 2021 was a record high of $1.81 billion (excluding $133.1 million of second draw PPP loans)
- Deposits of $5.79 billion increased 1.0% from the prior quarter
- Noninterest-bearingdemand deposits of $2.57 billion increased 1.0% from the prior quarter and represent 44.5% of total deposits
- Cost of interest-bearingdeposits declined 2 basis points from the prior quarter to 0.28%
- Recovery of credit loss expense of $16.0 million; allowance for credit losses to loans was 1.41% at December 31, 2021
- Well-capitalized with a Total Risk-Based capital ratio of 17.38% and a Common Equity Tier 1 capital ratio of 12.12% and TCE/TA* ratio of 9.23% at December 31, 2021
*Non-GAAP financial measure; refer to the non-GAAP reconciliation slide
3
4Q21 Financial Summary
($ million, except EPS) | 4Q21 | 3Q21 | 4Q20 | Change(1) | |||||||||
Q/Q | Y/Y | ||||||||||||
Income Statement Summary | |||||||||||||
Net interest income | $ | 49.5 | $ | 50.0 | $ | 46.9 | -1.0% | 5.6% | |||||
Noninterest income | 9.3 | 12.5 | 8.8 | -25.7% | 5.5% | ||||||||
Operating revenue | 58.8 | 62.5 | 55.7 | -5.9% | 5.6% | ||||||||
Noninterest expense | 31.6 | 32.5 | 30.9 | -2.7% | 2.3% | ||||||||
Credit loss (recovery) expense | (16.0) | (7.2) | 5.1 | -120.5% | -413.8% | ||||||||
Pretax income | 43.1 | 37.2 | 19.7 | 15.8% | 119.0% | ||||||||
Income tax expense | 9.8 | 10.7 | 5.4 | -8.3% | 82.6% | ||||||||
Net income | $ | 33.3 | $ | 26.6 | $ | 14.3 | 25.5% | 132.7% | |||||
EPS-Diluted | $ | 1.09 | $ | 0.86 | $ | 0.47 | |||||||
Select Balance Sheet Items | |||||||||||||
Loans receivable | $ | 5,152 | $ | 4,859 | $ | 4,880 | 6.0% | 5.6% | |||||
Deposits | 5,786 | 5,730 | 5,275 | 1.0% | 9.7% | ||||||||
Total assets | 6,859 | 6,777 | 6,202 | 1.2% | 10.6% | ||||||||
Stockholders' equity | 643 | 619 | 577 | 3.9% | 11.5% | ||||||||
Profitability Metrics | |||||||||||||
Return on average assets | 1.93% | 1.58% | 0.92% | 35 | 101 | ||||||||
Return on average equity | 20.89% | 17.13% | 10.01% | 376 | 1,088 | ||||||||
TCE/TA(2) | 9.23% | 8.98% | 9.13% | 25 | 10 | ||||||||
Net interest margin | 2.96% | 3.07% | 3.13% | -11 | -17 | ||||||||
Efficiency ratio | 53.81% | 52.01% | 55.53% | 180 | -172 |
Note: Numbers may not foot due to rounding
- Percentage change calculated from dollars in thousands; change in basis points for returns and ratios
- Non-GAAPfinancial measure; refer to the non-GAAP reconciliation slide
4
Loan Portfolio Composition
$5.15 Billion Loan Portfolio
(as of 4Q21)
Commercial Real Estate Portfolio
$ in millions
Outstanding | $3,702 |
4Q21 Average Yield | 4.25% |
RRE & Consumer Portfolio | |
$ in millions | |
Outstanding | $401 |
4Q21 Average Yield | 3.38% |
Commercial & Industrial Portfolio(2) | |
$ in millions | |
Outstanding | $562 |
4Q21 Average Yield | 4.11% |
Leasing Portfolio | |
$ in millions | |
Outstanding | $487 |
4Q21 Average Yield | 4.90% |
Loan Portfolio Composition
(1)
RRE
8%
(2) | CRE |
C&I | |
72% | |
11% | |
Leases
9%
- RRE includes Consumer
- C&I portfolio includes $3 million of loans funded through the Paycheck Protection Program net of $33 thousand of deferred fees
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Hanmi Financial Corporation published this content on 25 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 January 2022 21:50:14 UTC.
