Hanmi Financial Corp. in Los Angeles remained in the black for the third consecutive quarter, posting an $8 million profit in the quarter that ended June 30, compared to a net loss of $29 million in last year's second quarter.
However, the $2.7 billion-asset company said Thursday that earnings were down 20% from the previous quarter, in part because it lost $2.2 million in connection with an unconsummated stock offering.
The company did fully subscribe the offering but its board "was not satisfied with the pricing offered and did not believe it to be in the best interest of our shareholders," said Hanmi’s president and chief executive, Jay S. Woo, in a news release Thursday.
Woo added that Hanmi's capital levels exceed all regulatory requirements and that a "gradual improvement" in asset quality has allowed the company to put the stock offering on hold.
Hanmi’s total risk-based capital ratio and tangible equity at June 30 were 14% and 10.3%, respectively. Nonperforming assets fell 40% year-over-year, to $160 million, though they increased by $5.5 million from the previous quarter. Hanmi did not record a provision in the first or second quarters.
Because nonperforming loans did not decline as much as Hanmi’s management expected in the second quarter, J.H. Son, Hanmi’s executive vice president and chief credit officer, said that company intend to pursue an "intense" loan-sale strategy in the coming quarters.
