Hanmi Financial Corporation (NASDAQ:HAFC) Q3 2020 Earnings Conference Call - Final Transcript

Oct 27, 2020 • 05:00 pm ET


Hanmi Financial Corporation (NASDAQ:HAFC) Q3 2020 Earnings Conference Call - Final Transcript


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Romolo C. Santarosa

the third quarter was $7.1 million, down from $20.9 million for the second quarter primarily due to the absence of security gains. More significantly, however, we returned to the secondary market and sold $29.3 million of the guaranteed portion of SBA loans for gains of $2.3 million. Notably, trade premiums averaged 9.53% for the third quarter. Noninterest expenses were $29.9 million this quarter, higher than last quarter because of the $3.1 million PPP deferred loan origination costs. Notwithstanding that effect, we did see salaries and benefits decline 3.4%. Near the end of the third quarter, we did trim where appropriate, a small number of individuals through attrition and separation. As always, we will continue to scrutinize our resources and activities, striving for a balance among efficiency, effective compliance and risk management and superior customer experience and service. As of September 30, 2020, we had $1 billion of cash and unpledged securities as well as $1.4 billion of remaining unused borrowing availability with the FHLB and $1.9 billion of unused secured and unsecured facilities. We remain confident that we have ample liquidity to operate in the evolving uncertain macroeconomic environment resulting from the pandemic, and we will continue to closely monitor and evaluate our potential liquidity requirements. Our return on average assets and return on average equity both increased in the third quarter to 1.08% and 11.74%, respectively. Last, our tangible book value increased to $17.95 per common share at the end of the third quarter, and our tangible common equity ratio remained strong at 9.05% as do all of our regulatory capital ratios.

With that, I'll turn it back to Bonnie.

Bonita I. Lee

Thank you, Ron. As we look ahead to the fourth quarter and beyond, we remain committed to supporting our loyal customers, prioritizing the health and safety of our employees and communities, and ultimately, emerging from the pandemic well positioned to drive profitable, sustainable growth and maximize value for our shareholders. I look forward to sharing our continued progress with you when we report our fourth quarter 2020 results in January.

Lasse Glassen

Operator, that concludes our prepared remarks. We'd now like to open the call up for questions.