How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in tough times. Obviously, banks that are losing money are less able to do those things.
Hanmi Bank scored 18 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. Hanmi Bank's most recent annualized quarterly return on equity was 10.11 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $31.1 million on total equity of $657.2 million. The bank experienced an annualized return on average assets, or ROA, of 1.29 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.