Hanmi Financial Corp (HAFC) 2023 Q3 法說會逐字稿

Ladies and gentlemen, welcome to the Hanmi Financial Corporation's Third Quarter 2023 Conference Call. As a reminder, today's call is being recorded for replay purposes. (Operator Instructions) I would now like to turn the call over to Larry Clark, Investor Relations for the company. Mr. Clark, please go ahead.

女士們、先生們，歡迎參加韓美金融公司 2023 年第三季電話會議。謹此提醒，今天的通話將被錄音以供重播。 （操作員說明）我現在想將電話轉給公司投資者關係部門的拉里·克拉克（Larry Clark）。克拉克先生，請繼續。

Thank you, Camilla, and thank you all for joining us today to discuss Hanmi's Third Quarter 2023 financial results. This afternoon, Hanmi issued its earnings release and quarterly supplemental slide presentation to accompany today's call. Both documents are available in the IR section of the company's website.

謝謝卡米拉，也謝謝大家今天加入我們討論 Hanmi 的 2023 年第三季財務表現。今天下午，韓美發布了收益報告和季度補充幻燈片演示，以配合今天的電話會議。這兩份文件均可在公司網站的投資者關係部分取得。

I'm here today with Bonnie Lee, President and Chief Executive Officer of Hanmi Financial Corporation; Anthony Kim, Chief Banking Officer; and Ron Santarosa, Chief Financial Officer. Bonnie will begin today's call with an overview. Anthony will discuss loan and deposit activities, and Ron will provide details on our financial performance. Then Bonnie will provide closing comments before we open the call up to your questions.

今天我和 Hanmi Financial Corporation 總裁兼執行長 Bonnie Lee 一起來到這裡。安東尼金，首席銀行官；羅恩桑塔羅薩（Ron Santarosa），財務長。邦妮將以概述開始今天的電話會議。安東尼將討論貸款和存款活動，羅恩將提供有關我們財務表現的詳細資訊。然後邦妮將在我們開始回答您的問題之前提供結束語。

Before we begin, I'd like to remind you that today's comments may include forward-looking statements under the federal securities laws. Forward-looking statements are based on current plans, expectations, events and financial industry trends that may affect the company's future operating results and financial position. Our actual results may differ materially from those contemplated by our forward-looking statements, which involve risks and uncertainties. The discussion of the factors that could cause our actual results to differ materially from those forward-looking statements can be found in our SEC filings, including our reports on Forms 10-K and 10-Q.

在開始之前，我想提醒您，今天的評論可能包括聯邦證券法規定的前瞻性陳述。前瞻性陳述是基於可能影響公司未來經營業績和財務狀況的當前計劃、預期、事件和金融業趨勢。我們的實際結果可能與我們的前瞻性陳述中預期的結果有重大差異，其中涉及風險和不確定性。關於可能導致我們的實際結果與前瞻性陳述有重大差異的因素的討論可以在我們向 SEC 提交的文件中找到，包括我們關於 10-K 表格和 10-Q 表格的報告。

In particular, we direct you to the discussion of certain risk factors affecting our business contained in our earnings release, our investor presentation and in our Form 10-K.

我們特別會引導您討論收益發布、投資者陳述和 10-K 表格中所包含的影響我們業務的某些風險因素。

With that, I would now like to turn the call over to Bonnie Lee. Bonnie, please go ahead.

現在我想把電話轉給邦妮李。邦妮，請繼續。

Thank you, Larry. Good afternoon, everyone, and thank you for joining us today to discuss our results for the third quarter of 2023. I am proud of our team's performance and the results we delivered during a dynamic banking environment characterized by ongoing economic uncertainty, inflation and higher interest rates. During the quarter, our team remained focused on executing against our long-term growth initiatives and diversification strategy. We did this while staying true to our core relationship banking model of providing our clients and prospects with a sound banking advice and the products and services they need to navigate the evolving environment. This approach has been critical to building our bank over the past 4 decades and is the foundation of our future growth.

謝謝你，拉里。大家下午好，感謝您今天加入我們討論我們2023 年第三季的業績。我對我們​​團隊的表現以及我們在以持續的經濟不確定性、通貨膨脹和更高利率為特徵的動態銀行環境中所所取得的成果感到自豪費率。在本季度，我們的團隊仍然專注於執行我們的長期成長計劃和多元化策略。我們在做到這一點的同時，始終堅持我們的核心關係銀行模式，為我們的客戶和潛在客戶提供完善的銀行建議以及他們應對不斷變化的環境所需的產品和服務。這種方法對於過去 4 年來我們銀行的建設至關重要，也是我們未來發展的基礎。

Turning to our third quarter performance. Total deposits were relatively stable quarter-over-quarter, and I am pleased that we were able to maintain a healthy mix of our noninterest-bearing deposits at 35% of total deposits. This is especially encouraging given the range of competing products available to clients in this high interest rate environment. During the quarter, we generated strong growth in demand deposits from our Corporate Korea clients which is an important growth initiative. Hanmi is uniquely positioned to serve this market, given our team's deep understanding of the unique business needs of the Corporate Korea clients.

轉向我們第三季的業績。總存款較上季相對穩定，我很高興我們能夠將無利息存款佔總存款的比例保持在 35% 的健康水準。考慮到在這種高利率環境下向客戶提供的競爭產品的範圍，這一點尤其令人鼓舞。本季度，我們韓國企業客戶的活期存款強勁成長，這是一項重要的成長舉措。鑑於我們的團隊對韓國企業客戶獨特業務需求的深入了解，Hanmi 在服務該市場方面處於獨特的地位。

I am pleased with our team's continued success in serving a growing number of Korean companies investing in the U.S. to add new banking relationships that we can grow over time. Third quarter loan balances were up 3.7% on an annualized basis, reflecting a 30% increase in new loan production from last quarter. We delivered loan growth across our commercial real estate C&I, SBA and Equipment Finance business lines. Importantly, as borrowers have come to accept the reality of the new interest rate environment, we were able to achieve a meaningful increase in average origination yields to 7.8% on new loans in the third quarter.

我很高興我們的團隊不斷成功地為越來越多在美國投資的韓國公司提供服務，增加了我們可以隨著時間的推移而發展的新銀行關係。第三季貸款餘額按年化計算成長 3.7%，反映出新貸款產出較上季成長 30%。我們的商業房地產 C&I、SBA 和設備融資業務線實現了貸款成長。重要的是，隨著借款人逐漸接受新利率環境的現實，我們能夠在第三季將新貸款的平均發放收益率大幅提高至 7.8%。

This is a 41 basis point increase from the second quarter. We continue to take a highly disciplined and selective approach to lending in the current environment with the goal of maintaining our excellent credit quality. To that point, I am pleased to report that our asset quality remained solid in the third quarter. The third quarter bankruptcy of the $10 million non-accrual loan identified in the beginning of this year led to a $5.1 million charge-off. As such, nonperforming assets declined by 29% to $15.9 million and represented just 22 basis points of total assets at quarter end.

這比第二季增加了 41 個基點。在當前環境下，我們繼續採取高度紀律和選擇性的貸款方式，以維持卓越的信貸品質。至此，我很高興地報告，我們的資產品質在第三季保持穩定。今年年初確定的 1,000 萬美元非應計貸款第三季破產，導致沖銷 510 萬美元。因此，截至季末，不良資產下降 29%，至 1,590 萬美元，僅佔總資產的 22 個基點。

We continue to manage diligently noninterest expenses, which were essentially flat from last quarter. As a result of higher revenues and stable expense, our efficiency ratio improved to 51.8% from 54.1% last quarter. Net interest margin was 3.03% in the third quarter, down 8 basis points from the last quarter, primarily due to higher but moderating deposit cost partially offset by improved loan yields during the quarter. We have a strong financial position and a sound capital levels that exceed all regulatory requirements for well-capitalized banks. This provides us the flexibility to invest in strategic opportunities such as entering new high-growth deposit rich areas that need relationship banking partners like Hanmi.

我們繼續努力管理非利息支出，與上季基本持平。由於收入增加和費用穩定，我們的效率從上季的 54.1% 提高到 51.8%。第三季淨利差為3.03%，較上季下降8個基點，主要是由於存款成本上升但有所放緩，但本季貸款收益率改善部分抵消了這一影響。我們擁有強大的財務狀況和穩健的資本水平，超過了資本充足銀行的所有監管要求。這為我們提供了投資策略機會的靈活性，例如進入需要像韓美這樣的關係銀行合作夥伴的新的高成長存款豐富地區。

To that point, we are on track to relocate our branch in San Francisco to the city of Dublin in the East Bay and our Edison, New Jersey branch to [leave] by the end of the year. Now turning to our strategic growth initiatives. Starting with the Corporate Korea. As I mentioned earlier, we continue to win new clients through our Corporate Korea initiative. In the third quarter, U.S. KC deposits increased by 16% or $107 million, driven primarily by a 22% increase in demand deposits. Deposits from our Corporate Korea clients now represent nearly 13% of our total deposits, up from 9% a year ago.

到那時，我們預計將舊金山分公司遷至東灣的都柏林市，並在年底前將新澤西州愛迪生分公司搬遷到[離開]。現在轉向我們的策略成長計劃。從韓國企業開始。正如我之前提到的，我們透過韓國企業計畫繼續贏得新客戶。第三季度，美國 KC 存款成長 16%，即 1.07 億美元，主要是由活期存款成長 22% 推動的。韓國企業客戶的存款目前占我們總存款的近 13%，高於一年前的 9%。

Our Estate Lending Group delivered strong results again this quarter, reflecting our success in securing top banking talent and expanding our market reach in this important business. Residential mortgage loan production was lower for the quarter, which is not surprising given the challenging mortgage market. That said, it is worth noting that we started this initiative in 2020, our residential loan portfolio has grown from 7% of the total loans in 2020 to over 15% today. The success of this business is the result of the strong relationships we have established with our corresponding lending partners over the past couple of years and our team's commitment to offering mortgage loans to our clients.

我們的房地產貸款集團本季再次取得了強勁的業績，反映出我們在吸引頂尖銀行人才和擴大這項重要業務的市場影響力方面取得了成功。本季住宅抵押貸款產量較低，考慮到抵押貸款市場充滿挑戰，這並不奇怪。儘管如此，值得注意的是，我們在 2020 年啟動了這項舉措，我們的住宅貸款組合已從 2020 年佔貸款總額的 7% 增長到今天的 15% 以上。這項業務的成功歸功於過去幾年我們與相應貸款合作夥伴建立的牢固關係以及我們團隊致力於向客戶提供抵押貸款的結果。

Our long-term diversification strategy is working. Our commercial real estate loan portfolio has declined from 70% of our total loans at the end of 2019 to just over 62% today. Importantly, this is very much in line with our targeted range of 60% to 65%.

我們的長期多元化策略正在發揮作用。我們的商業房地產貸款組合已從 2019 年底佔貸款總額的 70% 下降至目前的 62% 以上。重要的是，這非常符合我們 60% 至 65% 的目標範圍。

I'll now turn it over to Anthony Kim, our Chief Banking Officer, to share more specifics about our loan and deposit activity.

我現在將其轉交給我們的首席銀行官 Anthony Kim，以分享有關我們貸款和存款活動的更多細節。

Thank you, Bonnie, and thank you for joining us today. I'll begin by providing additional details on our loan production. Third quarter loan production was $336 million, up $77 million or 30% from the second quarter with a weighted average interest rate of 7.80%, up from 7.39% last quarter. The improvement in loan production reflected a balanced contribution from nearly all business lines, even with a higher origination rates. We saw growth in commercial real estate, C&I, SBA and Equipment Finance loans in the quarter.

謝謝你，邦妮，也謝謝你今天加入我們。我將首先提供有關我們貸款生產的更多詳細資訊。第三季貸款產量為 3.36 億美元，比第二季增加 7,700 萬美元，增幅為 30%，加權平均利率為 7.80%，高於上季的 7.39%。貸款生產的改善反映了幾乎所有業務線的均衡貢獻，即使發放率較高。我們看到本季商業房地產、C&I、SBA 和設備融資貸款有所成長。

We remain committed to pursuing high-quality transactions that met our underwriting standards and provide the appropriate level of yield in the current rate environment. CRE production was $106 million, up from $41 million in the second quarter. We feel very good about quality of our CRE portfolio, which as Bonnie noted, represented 62.5% of our total loan portfolio at quarter end. It has a weighted average loan-to-value ratio of 48.7% (sic) 47.8% and weighted average debt service coverage ratio of 2.2x (sic) 2.67x. Production in C&I came in strong at $68 million, up $32 million from the second quarter.

我們仍然致力於追求符合我們承保標準的高品質交易，並在當前利率環境下提供適當的收益率水準。 CRE 產量為 1.06 億美元，高於第二季的 4,100 萬美元。我們對 CRE 投資組合的品質感到非常滿意，正如 Bonnie 指出的那樣，截至季度末，該投資組合占我們貸款組合總額的 62.5%。其加權平均貸款價值比為48.7%（原文如此）47.8%，加權平均償債覆蓋率為2.2x（原文如此）2.67x。 C&I 的產量強勁，達到 6,800 萬美元，比第二季增加 3,200 萬美元。

We entered the third quarter with a strong pipeline of C&I opportunities. And as we head into the fourth quarter, those pipelines remain healthy. Total commitments on our commercial lines of credit were $1.09 billion in the third quarter, up slightly from the second quarter. Outstanding balances declined 6%, resulting in a utilization rate of 34% in the third quarter, down from 37% last quarter. We attribute the lower utilization to overall economic conditions and the higher interest rate environment, which has caused the clients to put more of a focus on their cash management. Residential mortgage loan production was $55 million for the third quarter, down from $10 million last quarter.

我們進入第三季時，擁有大量工商業機會。當我們進入第四季度時，這些管道仍然保持健康。第三季商業信貸額度承諾總額為 10.9 億美元，比第二季略有增加。未償餘額下降 6%，導致第三季利用率為 34%，低於上季的 37%。我們將利用率較低歸因於整體經濟狀況和較高的利率環境，這導致客戶更加關注現金管理。第三季住宅抵押貸款產量為 5,500 萬美元，低於上季的 1,000 萬美元。

As expected, most of our current lending opportunities are in the purchase market as refinance activity has declined significantly in response to rising interest rates and higher cost of home ownership. Residential mortgage loan represented over 15% of our total loan portfolio, up from 11% this time last year. Our team's success reflects the strong relationship we have developed with our corresponding lending partners over the past couple of years. Residential mortgage remains an important piece of our loan diversification strategy. Based on the current environment, we expect production to be in the range of $50 million to $60 million per quarter assuming interest rates remain at current levels.

正如預期的那樣，我們目前的大部分貸款機會都在購買市場，因為由於利率上升和房屋擁有成本上升，再融資活動大幅下降。住宅抵押貸款占我們總貸款組合的 15% 以上，高於去年同期的 11%。我們團隊的成功反映了過去幾年我們與相應貸款合作夥伴建立的牢固關係。住宅抵押貸款仍然是我們貸款多元化策略的重要組成部分。根據當前環境，假設利率保持在當前水平，我們預計每季產量將在 5,000 萬至 6,000 萬美元之間。

SBA loan production improved to $36 million in the third quarter, up from $31 million last quarter and in line with our expectations to fund between $35 million and $40 million of SBA loans each quarter. We have a talented team that is making excellent strides to grow our SBA portfolio by building strong relationships with the small businesses in our communities. With respect to Corporate Korea, loan balances were $720 million or just under 12% of total loan. Total US KC loan balances were down $12 million in the third quarter but this was driven by lower utilization on C&I lines as CRE loans were up $10 million in the quarter.

第三季 SBA 貸款產量從上季的 3,100 萬美元增至 3,600 萬美元，符合我們每季為 3,500 萬至 4,000 萬美元 SBA 貸款提供資金的預期。我們擁有一支才華橫溢的團隊，透過與社區中的小型企業建立牢固的關係，在擴大我們的 SBA 產品組合方面取得了巨大的進步。韓國企業的貸款餘額為 7.2 億美元，略低於貸款總額的 12%。第三季美國 KC 貸款餘額總額減少了 1,200 萬美元，但這是由於 C&I 貸款利用率下降，因為本季 CRE 貸款增加了 1,000 萬美元。

Turning to deposits. In the third quarter, Deposits were down 0.9% on a sequential basis, but up 1.5% year-over-year. We continue to expand our partnership base with our Corporate Korea clients with the deposit growing by $107 million in the quarter, primarily from new relationships. Importantly, we saw U.S. KC demand deposit increased $75 million in the quarter, and they now represent 19% of our total DDA. Our team continues to make good progress in adding new relationships that we believe we can grow over time. Our deposit base remains stable with our mix of noninterest-bearing deposit at 35% of total deposits. This stability is an important indicator of the solid banking relationships that we have developed.

轉向存款。第三季存款季減0.9%，但年增1.5%。我們繼續擴大與韓國企業客戶的合作關係，本季存款增加了 1.07 億美元，主要來自新的關係。重要的是，我們看到美國 KC 活期存款在本季度增加了 7,500 萬美元，目前占我們 DDA 總額的 19%。我們的團隊在增加新關係方面繼續取得良好進展，我們相信隨著時間的推移，我們可以不斷成長。我們的存款基礎保持穩定，無利息存款佔總存款的 35%。這種穩定性是我們所建立的穩固銀行關係的重要指標。

And with that, I'll now turn it over to Ron Santarosa, our Chief Financial Officer, for more details on our third quarter financial results.

現在，我將把它交給我們的財務長 Ron Santarosa，以了解有關我們第三季財務業績的更多詳細資訊。

Thank you, Anthony. Beginning with net interest income, we posted $54.9 million for the third quarter, down 1% from the second quarter. Here, we saw average interest earning assets grow slightly by 0.6%. Loan yields improved 9 basis points, and we had one additional day of net interest income. The cost of our interest-bearing deposits, however, rose 28 basis points, offsetting these increases and leading to a $567,000 decline in net interest income from the second quarter. Our net interest margin for the third quarter was 3.03%, down 8 basis points from the second quarter.

謝謝你，安東尼。從淨利息收入開始，我們第三季公佈的淨利息收入為 5,490 萬美元，比第二季下降 1%。在這裡，我們看到平均生息資產小幅成長0.6%。貸款收益率提高了 9 個基點，淨利息收入又多了一天。然而，我們的計息存款成本上升了 28 個基點，抵消了這些成長，導致第二季淨利息收入下降 567,000 美元。第三季淨利差為3.03%，較第二季下降8個基點。

As expected, the rate of decline in our net interest margin continued to slow, it declined 8 basis points for the third quarter compared with 17 basis points for the second quarter and 39 basis points for the first quarter. When we met last quarter, we noted that the rate of change for our interest-bearing deposits was slowing, better reflecting the current rate environment. We also noted that the shift towards interest-bearing deposits, driven by the current rate environment was also slowing. We were pleased to see that noninterest-bearing demand deposits remained healthy, 35% of the deposit portfolio and that our interest-bearing deposit categories remained relatively unchanged. We continue to see deceleration in the rate of change as we enter the fourth quarter, where the cost of interest-bearing deposits for the month of October to date is about 12 basis points higher than the third quarter average.

如預期，我們的淨利差下降速度持續放緩，第三季下降8個基點，而第二季下降17個基點，第一季下降39個基點。當我們上季度開會時，我們注意到計息存款的變化率正在放緩，更好地反映了當前的利率環境。我們也注意到，在當前利率環境的推動下，向有息存款的轉變也在放緩。我們很高興看到無息活期存款保持健康，佔存款組合的 35%，並且我們的計息存款類別保持相對不變。進入第四季度，我們繼續看到變化率放緩，10月份至今的計息存款成本比第三季平均高出約12個基點。

Turning to noninterest income, we posted $11.2 million, up 41.5% from the second quarter. The increase reflects a $4 million gain on the sale and leaseback of a branch property. Here, we also recognized a $3.5 billion right-of-use asset and a corresponding liability. Going forward, we expect the difference between the expense associated with the previously owned property and now the lease property to be approximately $300,000 per year. Third quarter gains on the sales of the guaranteed portion of SBA loans were about the same as in the second quarter at $1.2 million. The volume of loans sold, however, increased to $21 million for the third quarter from $19.9 million from the second quarter while the trade premium declined 91 basis points to 6.84%.

談到非利息收入，我們發布了 1,120 萬美元，比第二季成長 41.5%。這一增長反映了分公司財產出售和回租的 400 萬美元收益。在這裡，我們也確認了 35 億美元的使用權資產和相應的負債。展望未來，我們預計以前擁有的房產和與現在租賃房產相關的費用之間的差異約為每年 30 萬美元。第三季 SBA 貸款擔保部分的銷售收益與第二季大致相同，為 120 萬美元。然而，第三季的貸款銷售量從第二季的 1,990 萬美元增加到 2,100 萬美元，而貿易溢價下降 91 個基點至 6.84%。

Noninterest expenses for the third quarter remained well controlled at $34.2 million or 1.83% of average assets on an annualized basis. Credit loss expense for the third quarter was $5.2 million compared with a small recovery for the second quarter. As we have noted, net charge-offs were elevated by $6.1 million this quarter, reflecting actions taken on the two previously identified classified credits. Since there were $4.3 million of specific allowances for these loans, these charge-offs resulted in an incremental credit loss expense of $1.8 million for the third quarter. On an annualized basis, net charge-offs to average loans for the third quarter were 60 basis points, 19 basis points if we exclude the $6.1 million of charge-offs just noted. So altogether, with a provision of $5.2 million and net charge-offs of $8.9 million, we ended the quarter with an allowance for loan losses of $67.3 million or 1.12% of loans. I think it's important to point out that if you were to exclude the $4.3 million of specific allowances from the coverage ratio for the second quarter, that ratio would have been 1.12% as well.

第三季的非利息支出仍控制在 3,420 萬美元，佔年化平均資產的 1.83%。第三季信貸損失費用為 520 萬美元，第二季略有回升。正如我們所指出的，本季淨沖銷增加了 610 萬美元，反映出對先前確定的兩項分類信貸採取的行動。由於這些貸款有 430 萬美元的特定備抵，這些沖銷導致第三季信用損失費用增加 180 萬美元。以年化計算，第三季平均貸款的淨沖銷為 60 個基點，如果我們排除剛才提到的 610 萬美元沖銷，則為 19 個基點。因此，總而言之，提列了 520 萬美元的準備金和 890 萬美元的淨沖銷額，本季末我們的貸款損失準備金為 6,730 萬美元，佔貸款的 1.12%。我認為重要的是要指出，如果你從第二季的覆蓋率中排除 430 萬美元的特定津貼，那麼該比率也將是 1.12%。

Turning to funding, liquidity and capital. Our deposit portfolio remained strong due to our solid client relationships and limited reliance on broker deposits or wholesale funds. The ratios of loans to deposits was 96.2% at quarter end. Our available-for-sale securities portfolio reduced for pledging needs and combined with our cash position, represented 16.2% of deposits. The after-tax unrealized loss on our securities portfolio is included in our capital position and grew $14.8 million due to the changes in interest rates since the end of the second quarter. We also repurchased 100,000 shares of our common stock, further reducing our capital position by $1.9 million. The addition of third quarter net income less cash dividends paid offset these reductions to capital resulted in just a 0.5% to 1% decline in tangible book value per share to $21.45 at September 30.

轉向資金、流動性和資本。由於我們穩固的客戶關係以及對經紀人存款或批發資金的有限依賴，我們的存款組合仍然強勁。季末貸存比率為96.2%。我們的可供出售證券投資組合因質押需求而減少，加上我們的現金頭寸，佔存款的 16.2%。我們的證券投資組合的稅後未實現損失包含在我們的資本頭寸中，由於自第二季末以來利率的變化，該損失增加了 1,480 萬美元。我們也回購了 10 萬股普通股，進一步減少了 190 萬美元的資本部位。第三季淨利減去支付的現金股利抵銷了資本的減少，導致截至 9 月 30 日每股有形帳面價值僅下降 0.5% 至 1%，至 21.45 美元。

Hanmi and the bank continued to exceed the minimum regulatory capital requirements and the bank continues to exceed minimum ratios for the well-capitalized category. The company's common equity Tier 1 ratio was 11.95%. At the bank level, this ratio was 13.42%. If we were to give effect to the after-tax unrealized losses in our regulatory capital, about 156 basis points, our ratios would still exceed the minimums.

Hanmi 和該銀行繼續超過最低監管資本要求，該銀行也繼續超過資本充足類別的最低比率。該公司的普通股一級資本比率為11.95%。在銀行層面，這一比例為13.42%。如果我們將監理資本中的稅後未實現損失（約 156 個基點）納入考慮範圍，我們的比率仍將超過最低標準。

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

有了這個，我會把它轉回給邦妮。

Thank you, Ron. As I have said many times before, our competitive advantage at Hanmi is our team, and I'm grateful to our team for their continued hard work and dedication to serving our clients and our communities. Our third quarter performance reflects the adaptability and consistent execution of our team. Their commitment to building strong client relationships by delivering smart banking advice and our diverse offerings is bearing fruit. Our results for the first three quarters of 2020 put us on track to deliver another year of solid financial results. We are mindful of the potential ongoing volatility in the marketplace, and we'll continue to execute across all areas of the business.

謝謝你，羅恩。正如我之前多次說過的，我們韓美的競爭優勢是我們的團隊，我感謝我們的團隊為我們的客戶和社區服務的持續努力和奉獻。我們第三季的業績反映了我們團隊的適應性和一致的執行力。他們透過提供智慧銀行建議和我們多樣化的產品來建立牢固的客戶關係的承諾正在取得成果。 2020 年前三個季度的業績使我們有望再創穩健的財務業績。我們注意到市場潛在的持續波動，我們將繼續在所有業務領域執行。

Our diversified business model, strong core deposit franchise, healthy loan pipelines, excellent credit quality and strong capital position give us positive momentum as we enter the fourth quarter. We will continue to focus on diversifying our portfolio with a focus on maintaining strong credit quality and adding new clients that bring both lending and deposit relationships to Hanmi. We remain committed to executing our strategic initiatives to drive disciplined growth to create value for our shareholders over the long term. Thank you.

我們多元化的業務模式、強大的核心存款業務、健康的貸款管道、卓越的信貸品質和強勁的資本狀況為我們進入第四季度提供了積極的動力。我們將繼續致力於使我們的投資組合多樣化，重點是保持強勁的信貸品質並增加新客戶，為韓美帶來借貸和存款關係。我們仍然致力於執行我們的策略性舉措，以推動有紀律的成長，為我們的股東創造長期價值。謝謝。

Operator, we are now ready for the Q&A session. please open up the lines for questions.

接線員，我們現在準備好進行問答環節了。請開放提問線路。

(Operator Instructions) our first question comes from the line of Matthew Clark with Piper Sandler.

（操作員說明）我們的第一個問題來自 Matthew Clark 和 Piper Sandler 的對話。

First question around the production in the quarter, stepping up 30%, I guess, some of which is coming in commercial real estate. I guess can you give us a sense for why you're comfortable with putting on stronger production in this environment? And how do you plan to fund it?

第一個問題是關於本季的產量，我猜成長了 30%，其中一些來自商業房地產。我想您能否告訴我們為什麼您願意在這種環境下加強生產？您打算如何為其提供資金？

Well, we had about $30 million approved loans that got pushed back from second quarter to third quarter. So without $30 million, it would have been about $70 million per quarter production, which is consistent for the past three quarters. So -- and the concentration, I mean, type of production, the property that we funded is broad-based, including some hospitality for our existing customers. And then Tier 1, the owner-occupied building of Tier 1 automotive manufacturer. So it's a broad-based and we are comfortable lending to our VIP existing customers.

嗯，我們有大約 3000 萬美元的批准貸款從第二季推遲到了第三季。因此，如果沒有 3000 萬美元，每季的產量約為 7000 萬美元，這與過去三個季度的情況一致。所以——我的意思是，我們資助的生產類型、財產的集中度是廣泛的，包括對我們現有客戶的一些款待。然後是 Tier 1，即 1 級汽車製造商的業主自用建築。因此，它的基礎廣泛，我們很樂意向我們的 VIP 現有客戶提供貸款。

And then just around how you plan to fund it, just thinking about the kind of the marginal cost of funding.

然後圍繞你計劃如何為其提供資金，只需考慮資金的邊際成本。

So I mean, we are mindful of the funding requirements, but we continue to be able to generate the deposits coming from our U.S. KC. And also, we continue to bring on the deposit marketing bankers. So we are kind of a cherry picking on the loans and then manage the funding requirements for the loans in the pipeline.

所以我的意思是，我們注意到資金需求，但我們仍然能夠從我們的美國 KC 獲得存款。此外，我們繼續聘請存款行銷銀行家。因此，我們對貸款進行精挑細選，然後管理管道中貸款的資金需求。

Okay. And then on the SBA piece of it, it sounds like the production there is remaining kind of consistent, I guess a similar question there. I mean, the yields at a variable rate product, and I think at least on the 7(a) side. And I think those yields are somewhere in some cases, the [11s], maybe speak to kind of the demand side and what you're seeing on the SBA front.

好的。然後就 SBA 而言，聽起來製作仍然保持一致，我猜那裡也有類似的問題。我的意思是，可變利率產品的收益率，我認為至少在 7(a) 方面。我認為在某些情況下，這些收益率（[11s]）可能代表了需求方以及您在 SBA 方面看到的情況。

We've been consistent in terms of the production. And thanks to the talented marketing people that we brought in through the last couple of years, they are supporting the production. So going forward, I think that we can keep about $35 million to $40 million in that range.

我們在生產方面一直保持一致。感謝我們過去幾年引進的才華橫溢的行銷人員，他們為製作提供了支持。因此，展望未來，我認為我們可以將 3500 萬至 4000 萬美元保持在這個範圍內。

Okay. Okay. Great. And then maybe one for Ron. It sounds like the cost of -- the rate of change in deposit cost is slowing here and even in October, I think you'll have some additional lift in loan yields, particularly with the new production. Sorry, but it looks -- it sounds like the overall NIM pressure should subside here and then maybe even stabilize in the first or second quarter. Is that the right way to think about it?

好的。好的。偉大的。然後也許是給榮恩的。聽起來存款成本的變化率正在放緩，即使在十月份，我認為貸款收益率也會有一些額外的提升，特別是在新的生產中。抱歉，但看起來——聽起來總體淨利差壓力應該會在這裡消退，然後甚至可能在第一季或第二季穩定下來。這是正確的思考方式嗎？

I would agree, again, but making the assumption that the aggregate level of interest rates, the Fed is not really doing anything much more than perhaps another 25, whatever time frame, whether that's November coming up or in the next year and that the competition, which I think has been -- well, intense has been, I'll say, reasonably priced there are some outliners. But so if we can keep that idea or if those ideas continue to hold, then I think you're going to continue to see this gradual deceleration until we hit an inflection point which again, could be first quarter, maybe second quarter. But I wouldn't predict the quarter too much as it's going to happen. I can see that. But if I can hold the other things relatively constant, and that would give you some assurances that maybe it is the first or the second.

我再次同意，但假設利率的總體水平，美聯儲實際上並沒有做任何超過可能另外 25 次的事情，無論時間框架如何，無論是即將到來的 11 月還是明年，而且競爭，我認為，嗯，強烈，我會說，價格合理，有一些輪廓。但是，如果我們能夠保持這個想法，或者如果這些想法繼續保持下去，那麼我認為你將繼續看到這種逐漸減速，直到我們再次遇到拐點，可能是第一季度，也許是第二季度。但我不會對本季做出太多預測，因為它將會發生。我理解了。但如果我能讓其他事情保持相對不變，那就可以給你一些保證，也許這是第一個或第二個。

Our next question comes from the line of Kelly Motta with KBW.

我們的下一個問題來自凱利·莫塔 (Kelly Motta) 與 KBW 的對話。

I thought I would start off on the capital side. I know you picked away at the buyback very modestly this quarter, but just wondering on what your appetite level is here given where your stock is trading, it would seem that buybacks would be attractive. Just wondering what your appetite looks like in the quarter ahead and kind of the priorities here for capital return.

我想我會從首都這邊開始。我知道您本季非常謹慎地選擇了回購，但只是想知道考慮到您的股票交易情況，您的興趣程度如何，回購似乎很有吸引力。只是想知道您對未來一個季度的興趣以及資本回報的優先事項。

Sure. Well, as I've mentioned on previous calls, the Board of Directors actively looks at our capital plan each quarter, the dividend actions and repurchase activity and so on. And so that topic is taken up each quarter. We do consider the number of shares that would vest under some of our employee compensation programs. So looking to see if it is worthwhile to keep the share count relatively neutral. But what we might do in the fourth quarter, the first quarter or the second quarter, debt we take that up each quarter. Again, we're also very cognizant, however, of credit charge that could affect capital, things of that sort. So while I can appreciate that the price might be attractive. We also make sure that we want to keep sufficient levels of capital to deal with any adverse effects that might pop up in any particular period for any particular reason.

當然。嗯，正如我在之前的電話會議中提到的，董事會每季都會積極關注我們的資本計劃、股息行動和回購活動等。因此每季都會討論這個主題。我們確實考慮了根據我們的一些員工薪酬計劃授予的股份數量。因此，我們想看看是否值得保持股票數量相對中性。但我們可能在第四季、第一季或第二季做的事情，我們每季都會增加債務。然而，我們也非常清楚信貸費用可能會影響資本之類的事情。因此，雖然我可以理解價格可能很有吸引力。我們還確保保持足夠的資本水平，以應對任何特定時期因任何特定原因可能出現的任何不利影響。

Got it. That's helpful, Ron. And can you just remind us how much is left on the current authorization?

知道了。這很有幫助，羅恩。您能否提醒我們目前授權還剩多少？

I believe it's just under 500,000 shares.

我相信不到 50 萬股。

Got it. That's helpful. I think there was a tick up in special mention. I'm seeing this quarter. Can you just kind of walk through the drivers of that? I'm wondering how much of that is just proactive portfolio management and any sort of trends there that you're seeing that drove that increase?

知道了。這很有幫助。我認為特別值得一提的是。我看的是這個季度您能簡單介紹一下其驅動因素嗎？我想知道其中有多少是主動的投資組合管理以及您所看到的任何推動這種成長的趨勢？

Sure. Yes, I mean, you're right. We are very, very proactive when it comes to correctly and timely creating our loans. So there was a one $28 million credit. It's a memory care assisted living facility, it is in the lease-up stability period. And due in part to COVID and other various factors this hasn't reached the optimal occupancy rate. So that's why we had downgraded it this quarter. But based on the most recent communication with the borrower, the occupancy rate most recently reached the above -- the breakeven point and then also the customers are looking to sell the property. Based on all the current assessment, we do not expect any loss from this particular relationship. So it's not a trend of anything. So this just happens to be the kind of one-off type of situation.

當然。是的，我的意思是，你是對的。在正確、及時地發放貸款方面，我們非常非常積極主動。因此有一筆 2800 萬美元的信貸。這是一個記憶護理輔助生活設施，處於租賃穩定期。部分由於新冠疫情和其他各種因素，該飯店尚未達到最佳入住率。這就是我們本季下調其評級的原因。但根據最近與借款人的溝通，入住率最近達到了上述水平——盈虧平衡點，然後客戶也希望出售該房產。根據目前的所有評估，我們預計這種特殊關係不會造成任何損失。所以這不是什麼趨勢。所以這恰好是一種一次性的情況。

Got it. That's helpful. Maybe last question for me, and then I'll step back. Ron, can you -- I missed what you had said about the sale leaseback and the impact to occupancy and equipment. Can you just walk us through what's the good run rate for that line item? And more broadly speaking, expenses are really nicely controlled. Just wondering how you guys are approaching expense management at these levels? Is there additional room for or areas to trim? Or is this a good number to be building off of?

知道了。這很有幫助。也許這是我的最後一個問題，然後我會退後一步。羅恩，你能——我錯過了你所說的關於售後回租以及對入住率和設備的影響的內容。您能否向我們介紹一下該訂單項目的良好運作率是多少？更廣泛地說，費用確實得到了很好的控制。只是想知道你們如何在這些級別上進行費用管理？是否有額外的空間或區域需要修剪？或者說這是一個值得建立的好數字嗎？

So to the first part of your question on the sale leaseback, we only anticipate about a $300,000 annual increase in that particular line item, if you will. If you isolate just the differential between the existing building as an owned property and then as a leased property. So I would say it's fairly muted on a quarterly basis. With respect to expenses, generally, I think we've been doing a fairly good job notwithstanding inflationary pressures. So as we enter the planning season for 2024, we certainly will be looking at areas where we might be able to achieve efficiencies, eliminate redundancies and things of that sort.

因此，對於您關於售後回租的問題的第一部分，如果您願意的話，我們僅預計該特定訂單項目每年會增加約 300,000 美元。如果您僅將現有建築物作為自有財產和作為租賃財產之間的區別進行區分。所以我想說，以季度來看，情況相當平靜。就支出而言，總體而言，我認為儘管存在通膨壓力，但我們的工作還是做得相當不錯。因此，當我們進入 2024 年的規劃季節時，我們肯定會考慮在哪些領域能夠提高效率、消除裁員等。

I couldn't tell you how much that would be. But certainly, we recognize the environment that we're in being very cost conscious, as I think we are, continues to be what we need to do. So taking it forward then at a run rate last year was highly inflationary depending on how you want to measure the year. But I would think we would at least see what we're seeing now until we get to about the second quarter where salary, merits, promotions, things of that sort, come to play, which would affect salaries line. And then, of course, we have the annual health benefits ideas that will probably take effect in the first quarter. So those are kind of early yet, don't know where they are, but I guess I would ask you to pick an inflationary factor, let's say, 3% for wherever we think we might be. And that's probably how I would start to at least guess at those ideas.

我無法告訴你那會是多少錢。但當然，我們認識到我們所處的環境非常注重成本，正如我所認為的那樣，這仍然是我們需要做的。因此，按照去年的運行速度推進的話，通貨膨脹率很高，這取決於你想如何衡量這一年。但我認為我們至少會看到現在所看到的情況，直到第二季左右，薪資、績效、晉升等事情都會發揮作用，這將影響薪資線。當然，我們還有可能在第一季生效的年度健康福利想法。所以這些還為時過早，不知道它們在哪裡，但我想我會要求你選擇一個通貨膨脹因素，比方說，3%，無論我們認為我們可能在哪裡。這可能是我至少開始猜測這些想法的方式。

Just minor follow-up on that occupancy line. It was about $4.8 million this year, which annualizes out to $19.3 million, would that be kind of the number to build that $300,000 per year off of. It was still a little bit higher than the first half of the year. So I kind of want to make sure I have the base of that, right?

只是對該佔用線進行較小的後續行動。今年大約是 480 萬美元，年化後達到 1,930 萬美元，這個數字是否可以每年增加 30 萬美元。比上半年還是有一點高的。所以我想確保我有這個基礎，對嗎？

Yes. I would average over the quarters because while the -- I'll say, the occupancy expense is measured by rents or depreciation, amortization are fairly constant. You do get maintenance repair, which creates some volatility, if you will, so a little ups and downs depending on whatever the particular priority is. So I would average the quarters before you put to put an inflation effect on top of it.

是的。我會平均每個季度，因為雖然——我會說，佔用費用是透過租金或折舊來衡量的，但攤提相當穩定。你確實會得到維護維修，如果你願意的話，這會產生一些波動，所以根據特定的優先順序是什麼，會有一些起伏。因此，我會在考慮通貨膨脹影響之前對各個季度進行平均。

We have no further questions in the queue at this time. I'll now turn the call back over to Ms. Bonnie Lee for concluding remarks.

目前我們隊列中沒有其他問題。現在我將把電話轉回給 Bonnie Lee 女士做總結發言。

Thank you for joining our call today. We appreciate your interest in Hanmi and look forward to sharing our continued progress with you on our year-end call in January. Thank you.

感謝您今天加入我們的電話會議。我們感謝您對 Hanmi 的興趣，並期待在 1 月的年終電話會議上與您分享我們的持續進展。謝謝。

Thank you. This concludes today's teleconference. You may now disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。