LOS ANGELES, July 21, 2026 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the second quarter of 2026.

Net income for the second quarter of 2026 was $23.5 million, or $0.79 per diluted share, compared with $22.6 million, or $0.75 per diluted share for the first quarter of 2026. The return on average assets for the second quarter was 1.20% and the return on average equity was 11.09%, compared with a return on average assets of 1.18% and a return on average equity of 10.86% for the first quarter of 2026.

CEO Commentary
“Hanmi delivered another quarter of strong earnings growth, reflecting consistent execution across our business,” said Bonnie Lee, President and Chief Executive Officer. “Our capital position remained healthy while returning 58% of earnings to shareholders in the form of dividends and share repurchases. Return on average equity increased to 11.1%, supported by robust deposit growth, solid loan production, lower funding costs, and prudent expense management. Deposits grew 2.3% sequentially, with noninterest-bearing deposits increasing 5.2%, underscoring the strength of our relationship-based banking model and the value of our franchise.”

“Consistent with our strategy, we maintained a steady pace of loan production while continuing to diversify our loan portfolio. Importantly, credit quality remained excellent, reflecting our prudent underwriting standards and disciplined approach to risk management.”

“Based on our strong first-half performance, robust loan and deposit pipelines, and the momentum we are seeing across the business, we remain optimistic about our outlook and are confident in our ability to deliver continued earnings growth and strong financial performance through the second half of 2026,” concluded Lee.

Second Quarter 2026 Highlights:

• Net income was $23.5 million, or $0.79 per diluted share, up 4.2% from the first quarter, driven by continued growth in net interest income and lower credit loss expense.
• Return on average assets and return on average equity during the second quarter were 1.20% and 11.09%, respectively.
• Deposits increased 2.3% to $7.0 billion from the prior quarter and noninterest-bearing demand deposits increased to 31% of total deposits, from 30% for the prior quarter.
• Net interest income increased 1.0% from the prior quarter, driven by the growth in commercial real estate and commercial and industrial lending. The increase was further supported by an improved funding mix, including lower-cost interest-bearing deposits and reduced borrowings.
• Net interest margin decreased two basis points to 3.36%, due primarily to normalization of FHLB dividend income, which elevated interest income in the prior quarter.
• Asset quality remained strong as nonperforming assets to total assets was 0.12%, an improvement of four basis points from the prior quarter, and nonperforming loans to total loans was 0.15%, also an improvement of four basis points from the prior quarter.
• Hanmi returned 58% of second-quarter net earnings to shareholders in the form of $8.3 million in dividends and $5.2 million in share repurchases; capital ratios remained healthy with tangible common equity to tangible assets at 10.03%.⁽¹⁾
  
  

⁽¹⁾ Refer to “Non-GAAP Financial Measures” for further details.

For more information about Hanmi, please see the Q2 2026 Investor Update (and Supplemental Financial Information), which is available on the Bank’s website at www.hanmi.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov. Also, please refer to “Non-GAAP Financial Measures” herein for further details of the presentation of certain non-GAAP financial measures.

Quarterly Highlights
(Dollars in thousands, except per share data)

Results of Operations
Net interest income increased $0.7 million, or 1.0%, to $63.9 million for the second quarter of 2026, from $63.2 million for the first quarter. This increase was principally due to higher interest income on loans, which increased by $0.9 million from the first quarter, as well as a $0.8 million increase in interest income from securities and interest-bearing deposits in other institutions. Interest expense on deposits, however, increased by $1.0 million from the first quarter.

Net interest margin (taxable equivalent) declined by two basis points to 3.36%, from 3.38% for the first quarter of 2026. This decline was driven by lower contributions from loans and FHLB stock, with unfavorable impacts of five basis points and three basis points, respectively, compared to the first quarter. Partially offsetting the decline were higher contributions from borrowings and interest-bearing deposits, with favorable impacts of three basis points each.

While the average yield on loans for the second quarter remained unchanged at 5.90%, the average balance of loans for the second quarter was $6.44 billion, up 0.1% from the previous quarter. The cost of interest-bearing deposits for the second quarter was 3.17%, down three basis points from the first quarter, and the average balance of interest-bearing deposits was $4.78 billion, up 2.7% from the previous quarter. The ratio of average loans to average deposits for the second quarter was 95.5%, compared with 97.5% for the previous quarter.

Credit loss expense for the second quarter of 2026 was $1.2 million, compared with $2.9 million for the first quarter. The $1.7 million decline was due to lower net charge-offs during the second quarter. Credit loss expense during the second quarter included a $1.3 million provision for loan losses and a negative provision of $0.1 million for off-balance sheet items. First-quarter credit loss expense included a $3.2 million provision for loan losses and a negative provision of $0.3 million for off-balance sheet items.

Noninterest income was $8.3 million, down 2.2% from $8.5 million for the first quarter of 2026, primarily due to a $0.8 million decrease in gain on sales of SBA loans. The gain was $1.3 million for the second quarter of 2026, compared with $2.1 million for the first quarter of 2026. The decrease in gain on sales of SBA loans was partially offset by a $0.4 million increase in trade finance and other service charges and fees and modest increases in the other noninterest income categories.

The volume of SBA loans sold for the second quarter of 2026 decreased to $20.9 million from $32.5 million for the first quarter, while trade premiums increased to 7.92% from 7.88% for the first quarter. Residential mortgage loans sold for the second quarter were $30.6 million with a premium of 2.00%, compared with $31.7 million and 2.50% for the first quarter. The gain on sales of residential mortgage loans was $0.4 million for the second quarter, compared with $0.5 million for the first quarter.

Noninterest expense was $39.0 million for the second quarter of 2026, up 1.7% from $38.4 million for the first quarter, primarily due to a $0.8 million increase in salaries and employee benefits and a $0.4 million increase in other real estate owned (OREO) expense. Salaries and employee benefits increased because of the additional business day in the second quarter and annual merit increases, while the increase in OREO expense reflected the absence of the first-quarter gain on sale of OREO. These increases were partially offset by a $0.8 million decrease in professional fees that were attendant to the first-quarter resolution of several administrative items. The efficiency ratio increased to 54.07% for the second quarter, compared with 53.48% for the previous quarter.

The effective tax rate was 26.5% for the second quarter of 2026, compared with 26.0% for the first quarter of 2026.

Financial Position
Total assets at June 30, 2026 increased 2.1%, or $162.2 million, to $8.00 billion from $7.84 billion at March 31, 2026. This increase was due primarily to a $77.2 million increase in cash and due from banks, a $60.9 million increase in securities available for sale, and a $21.3 million increase in prepaid expenses and other assets. The increase in prepaid expenses and other assets was primarily due to estimated income tax payments made during the second quarter.

Total loans, excluding the allowance for credit losses and loans held for sale, were $6.54 billion at June 30, 2026, down 0.2% from $6.55 billion at March 31, 2026.

Loans held for sale were $17.0 million at June 30, 2026, up from $4.9 million at March 31, 2026. At the end of the second quarter, loans held for sale consisted of $12.0 million representing the guaranteed portion of SBA 7(a) loans and $5.0 million of residential mortgage loans.

New loan production was $371.9 million for the second quarter of 2026 at an average rate of 6.59%, while payoffs were $156.4 million at an average rate of 6.39%.

Deposits were $6.96 billion at the end of the second quarter of 2026, up $154.7 million, or 2.3%, from $6.80 billion at the end of the prior quarter. Driving the increase was a $104.7 million increase in noninterest-bearing deposits and a $54.4 million increase in time deposits over $250,000. Noninterest-bearing demand deposits represented 30.7% of total deposits at June 30, 2026 and the loan-to-deposit ratio was 94.0%.

Stockholders’ equity at June 30, 2026 was $812.7 million, up $9.9 million, or 1.2%, from $802.8 million at March 31, 2026. Offsetting the increase to stockholders’ equity from second quarter net income of $23.5 million were dividends of $8.3 million, share repurchases of $5.2 million, which included $0.4 million in purchases of vested employee stock in respect of Hanmi's equity compensation programs, and a $1.0 million increase in unrealized after-tax losses on securities available for sale. During the second quarter, under its share repurchase program, Hanmi repurchased 160,000 shares of common stock at an average price of $30.24. As of June 30, 2026, there were 1.99 million shares available under the share repurchase program. In addition to the share repurchase program, Hanmi purchased 15,134 shares of common stock surrendered by employees to satisfy their tax liabilities upon the second-quarter vesting of their equity compensation awards.

Tangible common equity per share at the end of the second quarter of 2026 was $27.04, up 1.8% from $26.56 at the end of the first quarter. Please refer to the Non-GAAP Financial Measures section below for more information.

Hanmi and the Bank exceeded minimum regulatory capital requirements, and the Bank continued to exceed the minimum for the “well capitalized” category.

Asset Quality 

Loans 30 to 89 days past due and still accruing were $32.8 million, or 0.50% of loans, at the end of the second quarter of 2026, compared with $13.3 million, or 0.20% of loans, at the end of the first quarter of 2026. The $19.5 million increase was primarily due to a $21.2 million commercial real estate loan, identified as special mention in the first quarter, that became delinquent during the second quarter.

Nonaccrual loans were $9.9 million, or 0.15% of loans, at June 30, 2026, compared with $12.4 million, or 0.19% of loans, at March 31, 2026. The decrease for the second quarter reflects the sale of a $3.2 million commercial real estate loan on nonaccrual status and $1.6 million of equipment finance agreement charge-offs, partially offset by $2.9 million of new nonaccrual loans and equipment finance agreements.

Nonperforming assets were $9.9 million, or 0.12% of total assets, at June 30, 2026, compared with $12.4 million, or 0.16% of total assets, at March 31, 2026. The decline reflects the changes described in the above paragraph.

Criticized loans were $113.9 million for the second quarter of 2026, compared with $116.4 million for the first quarter of 2026. This $2.5 million decrease in criticized loans included a $25.5 million decrease for special mention loans, partially offset by a $23.0 million increase for classified loans. Both the special mention decrease and classified increase were primarily due to the downgrade of three special mention loans totaling $23.6 million to the classified category, which included the previously mentioned $21.2 million commercial real estate loan.

There were no transfers of criticized loans into other-real-estate-owned during the second quarter of 2026. As a percent of total loans, criticized loans were 1.74% as of June 30, 2026, compared with 1.78% as of March 31, 2026.

The allowance for credit losses was $70.5 million, or 1.08% of loans, at both June 30 and March 31, 2026. Collectively evaluated allowances increased $0.6 million, while specific allowances decreased $0.6 million.

Gross charge-offs for the second quarter of 2026 were $1.9 million, compared with $3.2 million for the preceding quarter. Charge-offs during the second quarter included $1.6 million of equipment financing agreements. Recoveries of previously charged off loans were $0.6 million, substantially all of which were equipment financing agreements. As a result, there were $1.3 million of net charge-offs for the second quarter of 2026, or 0.08% of loans (annualized), compared with $2.6 million, or 0.16% of loans, for the first quarter of 2026.

Corporate Developments
On April 23, 2026, Hanmi’s Board of Directors declared a cash dividend on its common stock of $0.28 per share for the 2026 second quarter. Hanmi paid the dividend on May 20, 2026, to stockholders of record as of the close of business on May 4, 2026.

Earnings Conference Call        
Hanmi Bank will host its second quarter 2026 earnings conference call today, July 21, 2026, at 2:00 p.m. PST (5:00 p.m. EST) to discuss these results. This call will also be webcast. To access the call, please dial 1-877-407-9039 before 2:00 p.m. PST, using access code Hanmi Bank. To listen to the call online, either live or archived, please visit Hanmi’s Investor Relations website at https://investors.hanmi.com/ where it will also be available for replay approximately one hour following the call.

About Hanmi Financial Corporation
Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 32 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.

Forward-Looking Statements
This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:

• a failure to maintain adequate levels of capital and liquidity to support our operations;
• general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;
• volatility and deterioration in the credit and equity markets;
• changes in investor sentiment or consumer spending, borrowing and savings habits;
• availability of capital from private and government sources;
• demographic changes;
• competition for loans and deposits and failure to attract or retain loans and deposits;
• inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding;
• our ability to enter new markets successfully and capitalize on growth opportunities;
• the current or anticipated impact of military conflict, terrorism or other geopolitical events;
• the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;
• risks of natural disasters;
• legal proceedings and litigation brought against us;
• risks associated with cybersecurity threats, data breaches, ransomware attacks, or other failures in our operational or security systems and infrastructure, including the risks arising from our dependence on third-party service providers and vendors;
• failure to maintain current technologies;
• risks associated with Small Business Administration loans;
• failure to attract, develop, or retain key employees;
• our ability to access cost-effective funding;
• the imposition of tariffs or other domestic or international governmental policies, trade restrictions, and any retaliatory measures impacting our borrowers and the broader economy;
• the impact of a potential federal government shutdown, which may impact on our ability to effect sales of Small Business Administration loans or debt ceiling impasses or fiscal uncertainty;
• changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
• fluctuations in real estate values;
• changes in accounting policies and practices;
• changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
• the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests;
• strategic transactions we may enter into, including the costs associated with the evaluation of any strategic opportunities and the overall effects of any acquisitions or dispositions we may make;
• the adequacy of and changes in the economic assumptions and methodology for computing our allowance for credit losses;
• our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses;
• changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements;
• our ability to control expenses;
• the inability of third-party service providers to perform their obligations to us; and
• the ability of the Company to withstand disruptions that may be caused by any failure of the operational systems of third parties.

In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.

Investor Contacts:
Romolo (Ron) Santarosa
Senior Executive Vice President & Chief Financial Officer
213-427-5636

Lisa Fortuna
Investor Relations
Financial Profiles, Inc.
lfortuna@finprofiles.com
310-622-8251

Hanmi Financial Corporation and Subsidiaries
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Hanmi Financial Corporation and Subsidiaries 
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