Hanmi Financial Corp. on Thursday reported a profit in the third quarter thanks to lower credit losses. It also named Lonny Robinson as chief financial officer.
The Koreatown parent of Hanmi Bank reported net income of $4.2 million (3 cents per share), compared with a net loss of $14.5 million (-12 cents) in the same period a year earlier.
Net interest income fell 14 percent to $25.2 million, and non-interest income rose 5.5 percent to $5.98 million. Delinquent loans fell 31 percent from a year ago while non-performing assets declined 55 percent. Hanmi only had to reserve $8.1 million for credit losses compared with $22 million a year earlier.
"We are continuing to reevaluate the adequacy of our capital given the level and nature of the risks to which we are exposed,” Chief Executive Jay S. Yoo said in a statement. “Despite volatile financial markets and economic headwinds, improving asset quality and stronger capital levels allow us time to properly evaluate options that maximize shareholder value.”
Hanmi earlier this year abandoned a potential merger with South Korea’s Woori Finance Holdings Co. Ltd. after regulatory resistance in both countries. A Woori unit later said it would acquire a 4.9 percent stake in the bank holding company.
Robinson, 54, joined the bank as interim CFO on Oct. 11, and the bank made the appointment official after receiving regulatory approval. He has more than 25 years of banking experience, and served as chief financial officer for several community banks, including Koreatown’s Center Financial Corp.
Shares were down 9 cents, or 8.6 percent, to 95 cents in midday trading on the Nasdaq.