Hanmi Financial Corp. on Thursday said its first quarter profit fell as the bank holding company generated lower revenue and set aside more money to cover bad loans.
The Koreatown parent of Hanmi Bank reported net income of $7.34 million (23 cents a share), compared with $10.44 million (55 cents) in the same period a year earlier. Analysts surveyed by Thomson Reuters on average expected the company to earn 22 cents a share.
Net interest income fell 6 percent to $24.5 million. Non-interest income was down 34 percent to $3.63 million.
The bank, which did not make a provision for credit losses in the year-earlier quarter, set aside $2 million in the most recent quarter, and has continued to sell off bad loans. Total non-performing assets fell more than 59 percent to $51.5 million, or less than 2 percent of total assets. Total net charge-offs dropped 48 percent to $11.3 million.
“We (also) are very pleased with the increases in total assets, loans and deposits this quarter after several years of deleveraging our balance sheet,” said Chief Executive Jay S. Yoo in a statement. “The improved operating platform we are implementing should provide further benefits and revenue growth into the future.”
Shares were up 10 cents, or less than 1 percent, to $10.20 in midday trading on the Nasdaq.