LOS ANGELES, April 22, 2025 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ:HAFC, or "Hanmi")), the parent company of Hanmi Bank (the "Bank"), today reported financial results for the first quarter of 2025.

Net income for the first quarter of 2025 was $17.7 million, or $0.58 per diluted share, unchanged from the fourth quarter of 2024. The return on average assets for the first quarter of 2025 was 0.94% and the return on average equity was 8.92%, compared with a return on average assets of 0.93% and a return on average equity of 8.89% for the fourth quarter of 2024.

CEO Commentary

"Our team delivered strong results in the first quarter with solid operating performance across all of our business lines," said Bonnie Lee, President and Chief Executive Officer. "We achieved our third consecutive quarter of net interest margin expansion, up 11 basis points to 3.02%, primarily driven by lower funding costs."

"Deposits increased 3% driven by new commercial accounts and contributions from our newly opened branches, a testament to our core relationship-based banking model. Loan production was solid, fueled by healthy originations in residential mortgages and our SBA business. Importantly, we maintained our strong credit quality, and continued to effectively manage our operating expenses, resulting in our best quarterly efficiency ratio since the fourth quarter of 2023."

"Overall, our first quarter results were well-balanced and reflected continued growth and positive momentum, including the successful opening of a new branch in the Atlanta region. Despite elevated macroeconomic uncertainty, our team's focus, discipline, and commitment to providing exceptional service and market leading products positions us well to deliver long-term value to our shareholders."

First Quarter 2025 Highlights:

First quarter net income was $17.7 million, or $0.58 per diluted share, unchanged from fourth quarter of 2024. Preprovision net revenues increased 5.9% from the prior quarter reflecting growth in net interest income, an expanding net interest margin, a solid contribution from fee-based activities, and disciplined expense management.
Loans receivable were $6.28 billion at March 31, 2025, up 0.5% from the end of the fourth quarter of 2024; loan production for the first quarter was $345.9 million, with a weighted average interest rate of 7.35%, compared with loan production for the fourth quarter of $339.0 million, with a weighted average interest rate of 7.37%.
Deposits were $6.62 billion at March 31, 2025, up 2.9% from the end of the fourth quarter of 2024; noninterest-bearing demand deposits at March 31, 2025 were 31.2% of total deposits.
Net interest income for the first quarter was $55.1 million, up 3.1% from the fourth quarter of 2024. Net interest margin (taxable equivalent) increased 11 basis points to 3.02%; the average yield on loans declined two basis points to 5.95%, while the cost of interest-bearing deposits fell 27 basis points to 3.69%.
Credit loss expense for the first quarter was $2.7 million, an increase from $0.9 million for the prior quarter. The allowance for credit losses increased $0.5 million to $70.6 million at March 31, 2025, or 1.12% of loans. For the first quarter, net loan charge-offs were $1.9 million, or 0.13% of average loans (annualized).
Nonperforming loans were $35.6 million at March 31, 2025, or 0.57% of loans. Criticized loans decreased to $164.9 million, as special mention loans decreased to $118.4 million, while classified loans increased to $46.5 million.

For more information about Hanmi, please see the Q1 2025 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)

	As of or for the Three Months Ended															Amount Change
	March 31,			December 31,			September 30,			June 30,			March 31,			Q1-25			Q1-25
	2025			2024			2024			2024			2024			vs. Q4-24			vs. Q1-24

Net income	$	17,672		$	17,695		$	14,892		$	14,451		$	15,164		$	(23	)	$	2,508
Net income per diluted common share	$	0.58		$	0.58		$	0.49		$	0.48		$	0.50		$	-		$	0.08

Assets	$	7,729,035		$	7,677,925		$	7,712,299		$	7,586,347		$	7,512,046		$	51,110		$	216,989
Loans receivable	$	6,282,189		$	6,251,377		$	6,257,744		$	6,176,359		$	6,177,840		$	30,812		$	104,349
Deposits	$	6,619,475		$	6,435,776		$	6,403,221		$	6,329,340		$	6,376,060		$	183,699		$	243,415

Return on average assets		0.94	%		0.93	%		0.79	%		0.77	%		0.81	%		0.01			0.13
Return on average stockholders' equity		8.92	%		8.89	%		7.55	%		7.50	%		7.90	%		0.03			1.02

Net interest margin		3.02	%		2.91	%		2.74	%		2.69	%		2.78	%		0.11			0.24
Efficiency ratio ⁽¹⁾		55.69	%		56.79	%		59.98	%		62.24	%		62.42	%		-1.10			-6.73

Tangible common equity to tangible assets ⁽²⁾		9.59	%		9.41	%		9.42	%		9.19	%		9.23	%		0.18			0.36
Tangible common equity per common share ⁽²⁾	$	24.49		$	23.88		$	24.03		$	22.99		$	22.86			0.61			1.63


⁽¹⁾Noninterest expense divided by net interest income plus noninterest income.
⁽²⁾Refer to "Non-GAAP Financial Measures" for further details.

Results of Operations

Net interest income for the first quarter was $55.1 million, up 3.1% from $53.4 million for the fourth quarter of 2024. The increase was primarily due to a decrease in deposit interest expense from a decrease in deposit rates. The average rate paid on interest-bearing deposits for the fourth quarter decreased 27 basis points to 3.69% from 3.96% for the fourth quarter of 2024, primarily due to the decrease in the average cost of time deposits to 4.17% for the first quarter from 4.55% for the fourth quarter of 2024. The average balance of interest-bearing deposits increased to $4.46 billion for the first quarter of 2025 from $4.36 billion for the fourth quarter. The average balance of time deposits was $2.35 billion for the first quarter of 2025, essentially unchanged from the fourth quarter. The average balance of noninterest-bearing deposits for the first quarter decreased to $1.90 billion from $1.97 billion for the fourth quarter of 2024. Net interest margin (taxable equivalent) for the first quarter was 3.02%, up 11 basis points from 2.91% for the fourth quarter of 2024.

	For the Three Months Ended (in thousands)										Percentage Change
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Q1-25		Q1-25
Net Interest Income	2025		2024		2024		2024		2024		vs. Q4-24		vs. Q1-24

Interest and fees on loans receivable ⁽¹⁾	$	90,887	$	91,545	$	92,182	$	90,752	$	91,674	-0.7	%	-0.9	%
Interest on securities		6,169		5,866		5,523		5,238		4,955	5.2	%	24.5	%
Dividends on FHLB stock		360		360		356		357		361	0.0	%	-0.3	%
Interest on deposits in other banks		1,841		2,342		2,356		2,313		2,604	-21.4	%	-29.3	%
Total interest and dividend income	$	99,257	$	100,113	$	100,417	$	98,660	$	99,594	-0.9	%	-0.3	%

Interest on deposits		40,559		43,406		47,153		46,495		45,638	-6.6	%	-11.1	%
Interest on borrowings		2,024		1,634		1,561		1,896		1,655	23.9	%	22.3	%
Interest on subordinated debentures		1,582		1,624		1,652		1,649		1,646	-2.6	%	-3.9	%
Total interest expense		44,165		46,664		50,366		50,040		48,939	-5.4	%	-9.8	%
Net interest income	$	55,092	$	53,449	$	50,051	$	48,620	$	50,655	3.1	%	8.8	%

⁽¹⁾Includes loans held for sale.

	For the Three Months Ended (in thousands)										Percentage Change
Average Earning Assets and Interest-bearing Liabilities	Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Q1-25 vs. Q4-24		Q1-25 vs. Q1-24
Loans receivable ⁽¹⁾	$	6,189,531	$	6,103,264	$	6,112,324	$	6,089,440	$	6,137,888	1.4	%	0.8	%
Securities		1,001,499		998,313		986,041		979,671		969,520	0.3	%	3.3	%
FHLB stock		16,385		16,385		16,385		16,385		16,385	0.0	%	0.0	%
Interest-bearing deposits in other banks		176,028		204,408		183,027		180,177		201,724	-13.9	%	-12.7	%
Average interest-earning assets	$	7,383,443	$	7,322,370	$	7,297,777	$	7,265,673	$	7,325,517	0.8	%	0.8	%

Demand: interest-bearing	$	79,369	$	79,784	$	83,647	$	85,443	$	86,401	-0.5	%	-8.1	%
Money market and savings		2,037,224		1,934,540		1,885,799		1,845,870		1,815,085	5.3	%	12.2	%
Time deposits		2,345,346		2,346,363		2,427,737		2,453,154		2,507,830	0.0	%	-6.5	%
Average interest-bearing deposits		4,461,939		4,360,687		4,397,183		4,384,467		4,409,316	2.3	%	1.2	%
Borrowings		179,444		141,604		143,479		169,525		162,418	26.7	%	10.5	%
Subordinated debentures		130,718		130,567		130,403		130,239		130,088	0.1	%	0.5	%
Average interest-bearing liabilities	$	4,772,101	$	4,632,858	$	4,671,065	$	4,684,231	$	4,701,822	3.0	%	1.5	%

Average Noninterest Bearing Deposits
Demand deposits - noninterest bearing	$	1,895,953	$	1,967,789	$	1,908,833	$	1,883,765	$	1,921,189	-3.7	%	-1.3	%

⁽¹⁾Includes loans held for sale.

	For the Three Months Ended										Yield/Rate Change
Average Yields	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Q1-25	Q1-25
and Rates	2025		2024		2024		2024		2024		vs. Q4-24	vs. Q1-24
Loans receivable ⁽¹⁾	5.95	%	5.97	%	6.00	%	5.99	%	6.00	%	-0.02	-0.05
Securities ⁽²⁾	2.49	%	2.38	%	2.27	%	2.17	%	2.07	%	0.11	0.42
FHLB stock	8.92	%	8.75	%	8.65	%	8.77	%	8.87	%	0.17	0.05
Interest-bearing deposits in other banks	4.24	%	4.56	%	5.12	%	5.16	%	5.19	%	-0.32	-0.95
Interest-earning assets	5.45	%	5.45	%	5.48	%	5.46	%	5.47	%	0.00	-0.02

Interest-bearing deposits	3.69	%	3.96	%	4.27	%	4.27	%	4.16	%	-0.27	-0.47
Borrowings	4.57	%	4.59	%	4.33	%	4.50	%	4.10	%	-0.02	0.47
Subordinated debentures	4.84	%	4.97	%	5.07	%	5.07	%	5.06	%	-0.13	-0.22
Interest-bearing liabilities	3.75	%	4.01	%	4.29	%	4.30	%	4.19	%	-0.26	-0.44

Net interest margin (taxable equivalent basis)	3.02	%	2.91	%	2.74	%	2.69	%	2.78	%	0.11	0.24

Cost of deposits	2.59	%	2.73	%	2.97	%	2.98	%	2.90	%	-0.14	-0.31

⁽¹⁾Includes loans held for sale.
⁽²⁾Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.

Credit loss expense for the first quarter was $2.7 million, compared with $0.9 million for the fourth quarter of 2024. First quarter credit loss expense included a $2.4 million credit loss expense for loan losses and a $0.3 million credit loss expense for off-balance sheet items.

Noninterest income for the first quarter increased $0.3 million, or 5.0%, to $7.7 million from $7.4 million for the fourth quarter of 2024. The increase was primarily due to a $0.6 million increase on gains from the sale of SBA loans. Gains on sales of SBA loans were $2.0 million for the first quarter of 2025, compared with $1.4 million for the fourth quarter of 2024. The volume of SBA loans sold for the first quarter increased to $32.2 million from $21.6 million for the fourth quarter of 2024, while trade premiums were 7.82% for the first quarter of 2025 compared with 8.53% for the fourth quarter. Mortgage loans sold for the first quarter were $10.0 million, with a premium of 2.50%, compared with $18.3 million and 1.96% for the fourth quarter. Gains on mortgage loans sold were $0.2 million for the first quarter, compared with $0.3 million for the fourth quarter.

	For the Three Months Ended (in thousands)										Percentage Change
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Q1-25		Q1-25
Noninterest Income	2025		2024		2024		2024		2024		vs. Q4-24		vs. Q1-24
Service charges on deposit accounts	$	2,217	$	2,192	$	2,311	$	2,429	$	2,450	1.1	%	-9.5	%
Trade finance and other service charges and fees		1,396		1,364		1,254		1,277		1,414	2.3	%	-1.3	%
Servicing income		732		668		817		796		712	9.6	%	2.8	%
Bank-owned life insurance income		309		316		320		638		304	-2.2	%	1.6	%
All other operating income		897		1,037		1,008		908		928	-13.5	%	-3.3	%
Service charges, fees & other		5,551		5,577		5,710		6,048		5,808	-0.5	%	-4.4	%

Gain on sale of SBA loans		2,000		1,443		1,544		1,644		1,482	38.6	%	35.0	%
Gain on sale of mortgage loans		175		337		324		365		443	-48.1	%	-60.5	%
Gain on sale of bank premises		-		-		860		-		-	0.0	%	0.0	%
Total noninterest income	$	7,726	$	7,357	$	8,438	$	8,057	$	7,733	5.0	%	-0.1	%

Noninterest expense for the first quarter increased $0.5 million to $35.0 million from $34.5 million for the fourth quarter of 2024. The increase was primarily due to a $1.6 million gain on the sale of an other-real-estate-owned property in the fourth quarter. Absent this gain, first quarter noninterest expense was down 3.2% sequentially due to decreases in professional fees, advertising and promotion, and other operating expenses, partially offset by a $0.5 million increase in salaries and benefits, which reflected seasonal first quarter increases. All other operating expenses decreased $0.7 million for the first quarter primarily due to the absence of a fourth quarter $0.5 million charge related to an SBA loan acquired in a previous acquisition. The efficiency ratio improved during the first quarter to 55.7%, compared with 56.8% for the fourth quarter of 2024.

	For the Three Months Ended (in thousands)												Percentage Change
	Mar 31,			Dec 31,			Sep 30,		Jun 30,		Mar 31,		Q1-25		Q1-25
	2025			2024			2024		2024		2024		vs. Q4-24		vs. Q1-24
Noninterest Expense
Salaries and employee benefits	$	20,972		$	20,498		$	20,851	$	20,434	$	21,585	2.3	%	-2.8	%
Occupancy and equipment		4,450			4,503			4,499		4,348		4,537	-1.2	%	-1.9	%
Data processing		3,787			3,800			3,839		3,686		3,551	-0.3	%	6.6	%
Professional fees		1,468			1,821			1,492		1,749		1,893	-19.4	%	-22.5	%
Supplies and communication		517			551			538		570		601	-6.2	%	-14.0	%
Advertising and promotion		585			821			631		669		907	-28.7	%	-35.5	%
All other operating expenses		3,175			3,847			2,875		3,251		3,160	-17.5	%	0.5	%
Subtotal		34,954			35,841			34,725		34,707		36,234	-2.5	%	-3.5	%

Branch consolidation expense		-			-			-		301		-	0.0	%	0.0	%
Other real estate owned expense (income)		41			(1,588	)		77		6		22	102.6	%	86.4	%
Repossessed personal property expense (income)		(11	)		281			278		262		189	-103.9	%	-105.8	%
Total noninterest expense	$	34,984		$	34,534		$	35,080	$	35,276	$	36,445	1.3	%	-4.0	%

Hanmi recorded a provision for income taxes of $7.4 million for the first quarter of 2025, compared with $7.6 million for the fourth quarter of 2024, representing an effective tax rate of 29.6% and 30.1%, respectively.

Financial Position

Total assets at March 31, 2025 increased 0.7%, or $51.1 million, to $7.73 billion from $7.68 billion at December 31, 2024. The increase reflected a $30.4 million increase in loans and a $24.2 million increase in cash, offset partially by a $7.6 million decrease in prepaid expenses and other assets.

Loans receivable, before allowance for credit losses, were $6.28 billion at March 31, 2025, up from $6.25 billion at December 31, 2024.

Loans held-for-sale were $11.8 million at March 31, 2025, up from $8.6 million at December 31, 2024. At the end of the first quarter, loans held-for-sale consisted of the guaranteed portion of SBA 7(a) loans.

	As of (in thousands)										Percentage Change
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Q1-25		Q1-25
	2025		2024		2024		2024		2024		vs. Q4-24		vs. Q1-24
Loan Portfolio
Commercial real estate loans	$	3,975,651	$	3,949,622	$	3,932,088	$	3,888,505	$	3,878,677	0.7	%	2.5	%
Residential/consumer loans		979,536		951,302		939,285		954,209		970,362	3.0	%	0.9	%
Commercial and industrial loans		854,406		863,431		879,092		802,372		774,851	-1.0	%	10.3	%
Equipment finance		472,596		487,022		507,279		531,273		553,950	-3.0	%	-14.7	%
Loans receivable		6,282,189		6,251,377		6,257,744		6,176,359		6,177,840	0.5	%	1.7	%
Loans held for sale		11,831		8,579		54,336		10,467		3,999	37.9	%	195.8	%
Total	$	6,294,020	$	6,259,956	$	6,312,080	$	6,186,826	$	6,181,839	0.5	%	1.8	%

	As of
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,
	2025		2024		2024		2024		2024
Composition of Loan Portfolio
Commercial real estate loans	63.1	%	63.1	%	62.3	%	62.9	%	62.7	%
Residential/consumer loans	15.6	%	15.2	%	14.9	%	15.4	%	15.7	%
Commercial and industrial loans	13.6	%	13.8	%	13.9	%	13.0	%	12.5	%
Equipment finance	7.5	%	7.8	%	8.0	%	8.5	%	9.0	%
Loans receivable	99.8	%	99.9	%	99.1	%	99.8	%	99.9	%
Loans held for sale	0.2	%	0.1	%	0.9	%	0.2	%	0.1	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

New loan production was $345.9 million for the first quarter of 2025 with an average rate of 7.35%, while payoffs were $125.1 million during the quarter at an average rate of 6.40%.

Commercial real estate loan production for the first quarter of 2025 was $146.6 million. Commercial and industrial loan production was $42.3 million, SBA loan production was $55.2 million, equipment finance production was $46.7 million, and residential mortgage loan production was $55.0 million.

	For the Three Months Ended (in thousands)
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
	2025			2024			2024			2024			2024
New Loan Production
Commercial real estate loans	$	146,606		$	146,716		$	110,246		$	87,632		$	60,085
Residential/consumer loans		55,000			40,225			40,758			30,194			53,115
Commercial and industrial loans		42,344			60,159			105,086			59,007			50,789
Equipment finance		46,749			42,168			40,066			42,594			39,155
SBA loans		55,242			49,740			51,616			54,486			30,817
subtotal		345,941			339,008			347,772			273,913			233,961


Payoffs		(125,102	)		(137,933	)		(77,603	)		(148,400	)		(86,250	)
Amortization		(90,743	)		(60,583	)		(151,674	)		(83,640	)		(90,711	)
Loan sales		(42,193	)		(67,852	)		(43,868	)		(42,945	)		(55,321	)
Net line utilization		(53,901	)		(75,651	)		9,426			1,929			(4,150	)
Charge-offs & OREO		(3,190	)		(3,356	)		(2,668	)		(2,338	)		(2,123	)

Loans receivable-beginning balance		6,251,377			6,257,744			6,176,359			6,177,840			6,182,434
Loans receivable-ending balance	$	6,282,189		$	6,251,377		$	6,257,744		$	6,176,359		$	6,177,840

Deposits were $6.62 billion at the end of the first quarter of 2025, up $183.7 million, or 2.9%, from $6.44 billion at the end of the prior quarter. Driving the change was a $140.4 million increase in money market and savings deposits and a $72.8 million increase in time deposits, partially offset by a $30.0 million decrease in noninterest-bearing demand deposits. Noninterest-bearing demand deposits represented 31.2% of total deposits at March 31, 2025 and the loan-to-deposit ratio was 94.9%.

	As of (in thousands)										Percentage Change
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Q1-25		Q1-25
	2025		2024		2024		2024		2024		vs. Q4-24		vs. Q1-24
Deposit Portfolio
Demand: noninterest-bearing	$	2,066,659	$	2,096,634	$	2,051,790	$	1,959,963	$	1,933,060	-1.4	%	6.9	%
Demand: interest-bearing		80,790		80,323		79,287		82,981		87,374	0.6	%	-7.5	%
Money market and savings		2,073,943		1,933,535		1,898,834		1,834,797		1,859,865	7.3	%	11.5	%
Time deposits		2,398,083		2,325,284		2,373,310		2,451,599		2,495,761	3.1	%	-3.9	%
Total deposits	$	6,619,475	$	6,435,776	$	6,403,221	$	6,329,340	$	6,376,060	2.9	%	3.8	%

	As of
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,
	2025		2024		2024		2024		2024
Composition of Deposit Portfolio
Demand: noninterest-bearing	31.2	%	32.6	%	32.0	%	31.0	%	30.3	%
Demand: interest-bearing	1.2	%	1.2	%	1.2	%	1.3	%	1.4	%
Money market and savings	31.3	%	30.0	%	29.7	%	29.0	%	29.2	%
Time deposits	36.3	%	36.2	%	37.1	%	38.7	%	39.1	%
Total deposits	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

Stockholders' equity at March 31, 2025 was $751.5 million, up $19.3 million from $732.2 million at December 31, 2024. The increase included $9.5 million in net income, net of dividends paid, for the first quarter. In addition, the increase in stockholders' equity included a $10.4 million decrease in unrealized after-tax losses on securities available for sale, and a $0.3 million decrease in unrealized after-tax losses on cash flow hedges, due to changes in interest rates during the first quarter of 2025. Hanmi also repurchased 50,000 shares of common stock at a cost of $1.1 million, for an average share price of $22.49, during the quarter. At March 31, 2025, 1,180,500 shares remain under Hanmi's share repurchase program. Tangible common stockholders' equity was $740.5 million, or 9.59% of tangible assets at March 31, 2025 compared with $721.1 million, or 9.41% of tangible assets at the end of the prior 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 continues to exceed the minimum for the "well capitalized" category. At March 31, 2025, Hanmi's preliminary common equity tier 1 capital ratio was 12.13% and its total risk-based capital ratio was 15.29%, compared with 12.11% and 15.24%, respectively, at the end of the prior quarter.

	As of										Ratio Change
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Q1-25	Q1-25
	2025		2024		2024		2024		2024		vs. Q4-24	vs. Q1-24
Regulatory Capital ratios ⁽¹⁾
Hanmi Financial
Total risk-based capital	15.29	%	15.24	%	15.03	%	15.24	%	15.20	%	0.05	0.09
Tier 1 risk-based capital	12.47	%	12.46	%	12.29	%	12.46	%	12.40	%	0.01	0.07
Common equity tier 1 capital	12.13	%	12.11	%	11.95	%	12.11	%	12.05	%	0.02	0.08
Tier 1 leverage capital ratio	10.67	%	10.63	%	10.56	%	10.51	%	10.36	%	0.04	0.31
Hanmi Bank
Total risk-based capital	14.48	%	14.43	%	14.27	%	14.51	%	14.50	%	0.05	-0.02
Tier 1 risk-based capital	13.35	%	13.36	%	13.23	%	13.47	%	13.44	%	-0.01	-0.09
Common equity tier 1 capital	13.35	%	13.36	%	13.23	%	13.47	%	13.44	%	-0.01	-0.09
Tier 1 leverage capital ratio	11.49	%	11.47	%	11.43	%	11.41	%	11.29	%	0.02	0.20

⁽¹⁾Preliminary ratios for March 31, 2025

Asset Quality

Loans 30 to 89 days past due and still accruing were 0.28% of loans at the end of the first quarter of 2025, compared with 0.30% at the end of the prior quarter.

Criticized loans totaled $164.9 million at March 31, 2025, down from $165.3 million at the end of the fourth quarter of 2024. The $0.4 million decrease resulted from a $21.2 million decrease in special mention loans, partially offset by a $20.8 million increase in classified loans. The $21.2 million decrease in special mention loans included loan upgrades of $20.5 million and amortization/paydowns of $0.9 million, offset by additions of $0.2 million. The $20.8 million increase in classified loans resulted from $22.8 million of loan downgrades and $3.4 million of equipment financing downgrades. Loan downgrades were primarily the result of a $20.0 million syndicated commercial real estate office loan designated as nonaccrual during the first quarter of 2025. Additions were offset by $2.7 million of equipment financing charge-offs, $1.1 million of payoffs, $1.0 million of amortization/paydowns, $0.3 million of loan charge-offs and $0.3 million of loan upgrades.

Nonperforming loans were $35.6 million at March 31, 2025, up from $14.3 million at the end of the prior quarter. The $21.3 million increase primarily reflects additions of $26.1 million, offset by charge-offs of $3.0 million, pay-offs of $0.8 million, $0.9 million in paydowns, and loan upgrades of $0.1 million. Additions included $23.0 million of loans and $3.1 million of equipment financing agreements. Loan additions were driven primarily by the previously mentioned $20.0 million commercial real estate loan designated as nonaccrual during the first quarter of 2025.

Nonperforming assets were $35.7 million at March 31, 2025, up from $14.4 million at the end of the prior quarter. As a percentage of total assets, nonperforming assets were 0.46% at March 31, 2025, and 0.19% at the end of the prior quarter.

Gross charge-offs for the first quarter of 2025 were $3.2 million, compared with $3.4 million for the preceding quarter. Charge-offs included $2.8 million on equipment financing agreements. Recoveries of previously charged-off loans were $1.3 million in the first quarter of 2025, which included $0.8 million of recoveries on equipment financing agreements. As a result, there were $1.9 million of net charge-offs for the first quarter of 2025, compared to net recoveries of $0.1 million for the prior quarter.

The allowance for credit losses was $70.6 million at March 31, 2025, compared with $70.1 million at December 31, 2024. Specific allowances for loans increased $5.6 million because of a $6.2 million specific allowance on the previously mentioned $20.0 million commercial real estate loan designated as nonaccrual during the first quarter of 2025, and collectively evaluated allowances decreased $5.2 million. The ratio of the allowance for credit losses to loans was 1.12% at March 31, 2025 and at the end of the prior quarter.

	As of or for the Three Months Ended (in thousands)															Amount Change
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,			Q1-25			Q1-25
	2025			2024			2024			2024			2024			vs. Q4-24			vs. Q1-24
Asset Quality Data and Ratios

Delinquent loans:
Loans, 30 to 89 days past due and still accruing	$	17,312		$	18,454		$	15,027		$	13,844		$	15,839		$	(1,142	)	$	1,473
Delinquent loans to total loans		0.28	%		0.30	%		0.24	%		0.22	%		0.26	%		(0.02	)		0.02

Criticized loans:
Special mention	$	118,380		$	139,612		$	131,575		$	36,921		$	62,317		$	(21,232	)	$	56,063
Classified		46,519			25,683			28,377			33,945			23,670			20,836			22,849
Total criticized loans ⁽¹⁾	$	164,899		$	165,295		$	159,952		$	70,866		$	85,987		$	(396	)	$	78,912

Criticized loans to total loans		2.62	%		2.64	%		2.56	%		1.15	%		1.39	%		(0.02	)		1.23

Nonperforming assets:
Nonaccrual loans	$	35,459		$	14,272		$	15,248		$	19,245		$	14,025		$	21,187		$	21,434
Loans 90 days or more past due and still accruing		112			-			242			-			-			112			112
Nonperforming loans ⁽²⁾		35,571			14,272			15,490			19,245			14,025			21,299			21,546
Other real estate owned, net		117			117			772			772			117			-			-
Nonperforming assets ⁽³⁾	$	35,688		$	14,389		$	16,262		$	20,017		$	14,142		$	21,299		$	21,546

Nonperforming assets to assets ⁽²⁾		0.46	%		0.19	%		0.21	%		0.26	%		0.19	%		0.27			0.27
Nonperforming loans to total loans		0.57	%		0.23	%		0.25	%		0.31	%		0.23	%		0.34			0.34

⁽¹⁾Includes nonaccrual loans of $34.4 million, $13.4 million, $13.6 million, $18.4 million, and $14.0 million as of Q1-25, Q4-24, Q3-24, Q2-24, and Q1-24, respectively.
⁽²⁾Excludes a $27.2 million nonperforming loan held-for-sale as of September 30, 2024.
⁽³⁾Excludes repossessed personal property of $0.7 million, $0.6 million, $1.2 million, $1.2 million, and $1.3 million as of Q1-25, Q4-24, Q3-24, Q2-24, and Q1-24, respectively.

	As of or for the Three Months Ended (in thousands)
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
	2025			2024			2024			2024			2024
Allowance for credit losses related to loans:
Balance at beginning of period	$	70,147		$	69,163		$	67,729		$	68,270		$	69,462
Credit loss expense (recovery) on loans		2,396			855			2,312			1,248			404
Net loan (charge-offs) recoveries		(1,946	)		129			(878	)		(1,789	)		(1,596	)
Balance at end of period	$	70,597		$	70,147		$	69,163		$	67,729		$	68,270

Net loan charge-offs (recoveries) to average loans ⁽¹⁾		0.13	%		-0.01	%		0.06	%		0.12	%		0.10	%
Allowance for credit losses to loans		1.12	%		1.12	%		1.11	%		1.10	%		1.11	%

Allowance for credit losses related to off-balance sheet items:
Balance at beginning of period	$	2,074		$	1,984		$	2,010		$	2,297		$	2,474
Credit loss expense (recovery) on off-balance sheet items		325			90			(26	)		(287	)		(177	)
Balance at end of period	$	2,399		$	2,074		$	1,984		$	2,010		$	2,297

Unused commitments to extend credit	$	896,282		$	782,587		$	739,975		$	795,391		$	792,769

⁽¹⁾Annualized

Corporate Developments

On January 28, 2025, Hanmi's Board of Directors declared a cash dividend on its common stock for the 2025 first quarter of $0.27 per share. Hanmi paid the dividend on February 26, 2025, to stockholders of record as of the close of business on February 10, 2025.

Earnings Conference Call

Hanmi Bank will host its first quarter 2025 earnings conference call today, April 22, 2025, 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 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;
a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
the failure to maintain current technologies;
risks associated with Small Business Administration loans;
failure to attract or retain key employees;
our ability to access cost-effective funding;
the imposition of tariffs or other domestic or international governmental policies;
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;
the adequacy of and changes in the 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; and
cyber security and fraud risks against our information technology and those of our third-party providers and vendors.

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, 2024, 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

Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)

	March 31,			December 31,			Percentage			March 31,			Percentage
	2025			2024			Change			2024			Change
Assets
Cash and due from banks	$	329,003		$	304,800			7.9	%	$	256,038			28.5	%
Securities available for sale, at fair value		907,011			905,798			0.1	%		872,190			4.0	%
Loans held for sale, at the lower of cost or fair value		11,831			8,579			37.9	%		3,999			195.8	%
Loans receivable, net of allowance for credit losses		6,211,592			6,181,230			0.5	%		6,109,570			1.7	%
Accrued interest receivable		23,536			22,937			2.6	%		23,032			2.2	%
Premises and equipment, net		20,866			21,404			-2.5	%		21,952			-4.9	%
Customers' liability on acceptances		552			1,226			-55.0	%		161			242.9	%
Servicing assets		6,422			6,457			-0.5	%		6,890			-6.8	%
Goodwill and other intangible assets, net		11,031			11,031			0.0	%		11,074			-0.4	%
Federal Home Loan Bank ("FHLB") stock, at cost		16,385			16,385			0.0	%		16,385			0.0	%
Bank-owned life insurance		57,476			57,168			0.5	%		56,639			1.5	%
Prepaid expenses and other assets		133,330			140,910			-5.4	%		134,116			-0.6	%
Total assets	$	7,729,035		$	7,677,925			0.7	%	$	7,512,046			2.9	%

Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	$	2,066,659		$	2,096,634			-1.4	%	$	1,933,060			6.9	%
Interest-bearing		4,552,816			4,339,142			4.9	%		4,443,000			2.5	%
Total deposits		6,619,475			6,435,776			2.9	%		6,376,060			3.8	%
Accrued interest payable		29,646			34,824			-14.9	%		38,007			-22.0	%
Bank's liability on acceptances		552			1,226			-55.0	%		161			242.9	%
Borrowings		117,500			262,500			-55.2	%		172,500			-31.9	%
Subordinated debentures		130,799			130,638			0.1	%		130,165			0.5	%
Accrued expenses and other liabilities		79,578			80,787			-1.5	%		92,053			-13.6	%
Total liabilities		6,977,550			6,945,751			0.5	%		6,808,946			2.5	%

Stockholders' equity:
Common stock		34			34			0.0	%		34			0.0	%
Additional paid-in capital		591,942			591,069			0.1	%		587,687			0.7	%
Accumulated other comprehensive income		(60,002	)		(70,723	)		15.2	%		(76,890	)		22.0	%
Retained earnings		360,289			350,869			2.7	%		326,526			10.3	%
Less treasury stock		(140,778	)		(139,075	)		-1.2	%		(134,257	)		-4.9	%
Total stockholders' equity		751,485			732,174			2.6	%		703,100			6.9	%
Total liabilities and stockholders' equity	$	7,729,035		$	7,677,925			0.7	%	$	7,512,046			2.9	%

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)

(Dollars in thousands, except share and per share data)

	Three Months Ended
	March 31,		December 31,		Percentage			March 31,		Percentage
	2025		2024		Change			2024		Change
Interest and dividend income:
Interest and fees on loans receivable	$	90,887	$	91,545		-0.7	%	$	91,674		-0.9	%
Interest on securities		6,169		5,866		5.2	%		4,955		24.5	%
Dividends on FHLB stock		360		360		0.0	%		361		-0.3	%
Interest on deposits in other banks		1,841		2,342		-21.4	%		2,604		-29.3	%
Total interest and dividend income		99,257		100,113		-0.9	%		99,594		-0.3	%
Interest expense:
Interest on deposits		40,559		43,406		-6.6	%		45,638		-11.1	%
Interest on borrowings		2,024		1,634		23.9	%		1,655		22.3	%
Interest on subordinated debentures		1,582		1,624		-2.6	%		1,646		-3.9	%
Total interest expense		44,165		46,664		-5.4	%		48,939		-9.8	%
Net interest income before credit loss expense		55,092		53,449		3.1	%		50,655		8.8	%
Credit loss expense		2,721		945		187.9	%		227		1098.7	%
Net interest income after credit loss expense		52,371		52,504		-0.3	%		50,428		3.9	%
Noninterest income:
Service charges on deposit accounts		2,217		2,192		1.1	%		2,450		-9.5	%
Trade finance and other service charges and fees		1,396		1,364		2.3	%		1,414		-1.3	%
Gain on sale of Small Business Administration ("SBA") loans		2,000		1,443		38.6	%		1,482		35.0	%
Other operating income		2,113		2,358		-10.4	%		2,387		-11.5	%
Total noninterest income		7,726		7,357		5.0	%		7,733		-0.1	%
Noninterest expense:
Salaries and employee benefits		20,972		20,498		2.3	%		21,585		-2.8	%
Occupancy and equipment		4,450		4,503		-1.2	%		4,537		-1.9	%
Data processing		3,787		3,800		-0.3	%		3,551		6.6	%
Professional fees		1,468		1,821		-19.4	%		1,893		-22.5	%
Supplies and communications		517		551		-6.2	%		601		-14.0	%
Advertising and promotion		585		821		-28.7	%		907		-35.5	%
Other operating expenses		3,205		2,540		26.2	%		3,371		-4.9	%
Total noninterest expense		34,984		34,534		1.3	%		36,445		-4.0	%
Income before tax		25,113		25,327		-0.8	%		21,716		15.6	%
Income tax expense		7,441		7,632		-2.5	%		6,552		13.6	%
Net income	$	17,672	$	17,695		-0.1	%	$	15,164		16.5	%

Basic earnings per share:	$	0.59	$	0.59				$	0.50
Diluted earnings per share:	$	0.58	$	0.58				$	0.50

Weighted-average shares outstanding:
Basic		29,937,660		29,933,644					30,119,646
Diluted		30,058,248		30,011,773					30,119,646
Common shares outstanding		30,233,514		30,195,999					30,276,358

Hanmi Financial Corporation and Subsidiaries

Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)

(Dollars in thousands)

	Three Months Ended
	March 31, 2025							December 31, 2024							March 31, 2024
				Interest		Average					Interest		Average					Interest		Average
	Average			Income /		Yield /		Average			Income /		Yield /		Average			Income /		Yield /
	Balance			Expense		Rate		Balance			Expense		Rate		Balance			Expense		Rate
Assets
Interest-earning assets:
Loans receivable ⁽¹⁾	$	6,189,531		$	90,887	5.95	%	$	6,103,264		$	91,545	5.97	%	$	6,137,888		$	91,674	6.00	%
Securities ⁽²⁾		1,001,499			6,169	2.49	%		998,313			5,866	2.38	%		969,520			4,955	2.07	%
FHLB stock		16,385			360	8.92	%		16,385			360	8.75	%		16,385			361	8.87	%
Interest-bearing deposits in other banks		176,028			1,841	4.24	%		204,408			2,342	4.56	%		201,724			2,604	5.19	%
Total interest-earning assets		7,383,443			99,257	5.45	%		7,322,370			100,113	5.45	%		7,325,517			99,594	5.47	%

Noninterest-earning assets:
Cash and due from banks		53,670							54,678							58,382
Allowance for credit losses		(69,648	)						(69,291	)						(69,106	)
Other assets		249,148							246,744							244,700

Total assets	$	7,616,613						$	7,554,501						$	7,559,493

Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	79,369		$	27	0.14	%	$	79,784		$	26	0.13	%	$	86,401		$	30	0.14	%
Money market and savings		2,037,224			16,437	3.27	%		1,934,540			16,564	3.41	%		1,815,085			16,553	3.67	%
Time deposits		2,345,346			24,095	4.17	%		2,346,363			26,816	4.55	%		2,507,830			29,055	4.66	%
Total interest-bearing deposits		4,461,939			40,559	3.69	%		4,360,687			43,406	3.96	%		4,409,316			45,638	4.16	%
Borrowings		179,444			2,024	4.57	%		141,604			1,634	4.59	%		162,418			1,655	4.10	%
Subordinated debentures		130,718			1,582	4.84	%		130,567			1,624	4.97	%		130,088			1,646	5.06	%
Total interest-bearing liabilities		4,772,101			44,165	3.75	%		4,632,858			46,664	4.01	%		4,701,822			48,939	4.19	%

Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,895,953							1,967,789							1,921,189
Other liabilities		144,654							162,064							164,524
Stockholders' equity		803,905							791,790							771,958

Total liabilities and stockholders' equity	$	7,616,613						$	7,554,501						$	7,559,493

Net interest income				$	55,092						$	53,449						$	50,655

Cost of deposits						2.59	%						2.73	%						2.90	%
Net interest spread (taxable equivalent basis)						1.70	%						1.44	%						1.28	%
Net interest margin (taxable equivalent basis)						3.02	%						2.91	%						2.78	%



⁽¹⁾Includes average loans held for sale.
⁽²⁾Income calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.

Non-GAAP Financial Measures

These disclosures should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Tangible Common Equity to Tangible Assets Ratio

Tangible common equity to tangible assets ratio is supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles ("GAAP"). This non-GAAP measure is used by management in the analysis of Hanmi's capital strength. Tangible common equity is calculated by subtracting goodwill and other intangible assets from stockholders' equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from stockholders' equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Hanmi.

The following table reconciles this non-GAAP performance measure to the GAAP performance measure for the periods indicated:

Tangible Common Equity to Tangible Assets Ratio (Unaudited)

(In thousands, except share, per share data and ratios)

	March 31,			December 31,			September 30,			June 30,			March 31,
Hanmi Financial Corporation	2025			2024			2024			2024			2024
Assets	$	7,729,035		$	7,677,925		$	7,712,299		$	7,586,347		$	7,512,046
Less goodwill and other intangible assets		(11,031	)		(11,031	)		(11,031	)		(11,048	)		(11,074	)
Tangible assets	$	7,718,004		$	7,666,894		$	7,701,268		$	7,575,299		$	7,500,972

Stockholders' equity ⁽¹⁾	$	751,485		$	732,174		$	736,709		$	707,059		$	703,100
Less goodwill and other intangible assets		(11,031	)		(11,031	)		(11,031	)		(11,048	)		(11,074	)
Tangible stockholders' equity ⁽¹⁾	$	740,454		$	721,143		$	725,678		$	696,011		$	692,026

Stockholders' equity to assets		9.72	%		9.54	%		9.55	%		9.32	%		9.36	%
Tangible common equity to tangible assets ⁽¹⁾		9.59	%		9.41	%		9.42	%		9.19	%		9.23	%

Common shares outstanding		30,233,514			30,195,999			30,196,755			30,272,110			30,276,358
Tangible common equity per common share	$	24.49		$	23.88		$	24.03		$	22.99		$	22.86


⁽¹⁾There were no preferred shares outstanding at the periods indicated.

Preprovision Net Revenues

Preprovision net revenues is supplemental financial information determined by a method other than in accordance with U.S. GAAP. This non-GAAP measure is used by management to measure Hanmi's core operational performance, excluding the impact of provisions for loan losses. By isolating preprovision net revenues, management can better understand the Company's true profitability and make more informed strategic decisions. Preprovision net revenues is calculated adding income tax expense and credit loss expense to net income. Management believes this financial measure highlights the Company's revenue activities and operational efficiency, excluding unpredictable loan loss provisions.

The following table details the Company's preprovision net revenues, which are non-GAAP measures, for the periods indicated:

Preprovision Net Revenues (Unaudited)

(In thousands, except percentages)

											Amount Change
Hanmi Financial	March 31,		December 31,		September 30,		June 30,		March 31,		Q1-25		Q1-25
Corporation	2025		2024		2024		2024		2024		vs. Q4-24		vs. Q1-24
Net income	$	17,672	$	17,695	$	14,892	$	14,451	$	15,164
Add back:
Credit loss expense		2,721		945		2,286		961		227
Income tax expense		7,441		7,632		6,231		5,989		6,552
Preprovision net revenues	$	27,834	$	26,272	$	23,409	$	21,401	$	21,943	5.9	%	26.8	%

Hanmi Reports 2025 First Quarter Results