Business

Hanmi Financial Q3 profit hits $23.7 million as loan production jumps 46%

The Los Angeles community bank widened its margin and sharply stepped up new lending, even as it narrowly missed the per-share profit forecast.

By Bharat Brief Desk·2h ago·Updated 2h ago·2 min read

Hanmi Financial, the Los Angeles-based community bank, reported third-quarter 2026 net income of $23.7 million, or $0.80 per diluted share, on October 27. Revenue came in at $76.6 million, about 2% above expectations, while earnings per share landed a cent short of the $0.81 consensus.

Investors shrugged off the narrow miss. Shares rose 0.44% in after-hours trading to $32.55, after a 0.75% gain in the regular session. The stock sits close to its 52-week high of $33.50.

The bank is earning more on each dollar it lends. Net interest income rose 5.8% to $67.6 million, and the net interest margin widened 8 basis points to 3.44%, up 22 basis points from a year earlier. Average loan yields climbed 13 basis points, while the average rate paid on interest-bearing deposits rose just 1 basis point. Pre-provision net revenue grew 10.8% from the prior quarter to $36.8 million, and the efficiency ratio improved to 52.02%.

Lending is the headline. New loan production hit $543.6 million, up 46.2% from $371.9 million in the second quarter. Commercial and industrial production jumped 91% to $170.3 million, and commercial real estate added $226.9 million.

That surge did not translate into a big balance-sheet jump. Net loans grew only 0.5% to $6.57 billion because $127.0 million in payoffs, up 65% from a year ago, offset new business. Management says borrowers are refinancing in the current rate environment. Commercial real estate makes up 62% of the loan book.

Deposits rose 1.4% to $7.06 billion. Hanmi also leans on its Corporate Korea initiative, which serves U.S. units of Korean companies. That business holds $780.7 million in loans and $1.35 billion in deposits, with deposits up 12% on the quarter. CEO Bonnie Lee called it a significant growth opportunity.

Source: Investing.com