Hanmi Financial in Los Angeles reported higher quarterly earnings as organic loan growth and an acquisition offset significant margin pressure.
The $4.2 billion-asset company's third-quarter net income rose 20% from the second quarter and 28% from a year earlier, to $13.3 million. The results were influenced by Hanmi's August purchase of Central Bancorp.
Net interest income increased by 8% from a year earlier, to $30.7 million. Organic loan production rose 47% from a quarter earlier, prompting management to tout Hanmi's performance beyond the Central purchase. The net interest margin compressed by 27 basis points from the second quarter and 61 basis points from a year earlier, to 3.67%.
Noninterest income more than doubled, to $14.3 million. The results included a $6.6 million bargain purchase gain and $1.2 million in gains from selling the guaranteed portion of Small Business Administration loans.
Noninterest expenses rose by 52%, to $26.7 million, including $3.4 million in merger-integration costs.