Hanmi Reports 2025 Second Quarter Results

7/22/25 4:05:00 PM ET

Major Banks

Finance

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LOS ANGELES, July 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 second quarter of 2025.

Net income for the second quarter of 2025 was $15.1 million, or $0.50 per diluted share, compared with $17.7 million, or $0.58 per diluted share for the first quarter of 2025. The return on average assets for the second quarter of 2025 was 0.79% and the return on average equity was 7.48%, compared with a return on average assets of 0.94% and a return on average equity of 8.92% for the first quarter of 2025.

CEO Commentary

"Hanmi delivered solid performance in the second quarter, highlighted by strong operational metrics," said Bonnie Lee, President and Chief Executive Officer. "We further expanded our net interest margin to 3.07%, and grew preprovision net revenue by 3.7%, primarily driven by lower funding costs."

"Loans grew 1.6% on an annualized basis with healthy C&I and residential mortgage loan production. Our relationship-based model continued to drive deposit growth, up 1.7% for the quarter. Noninterest-bearing demand deposit balances remained strong, accounting for over 30% of total deposits."

"Our second quarter net income was impacted by credit loss expense; however, importantly, asset quality remained excellent with significant improvement from the prior quarter. Criticized loans, nonaccrual loans and delinquent loans all declined notably. Looking to the second half of the year, we are encouraged by the strength of our loan pipeline and remain focused on deepening client relationships, expanding our market presence and leveraging our balance sheet to deliver sustainable long-term growth."

Second Quarter 2025 Highlights:

Second quarter net income was $15.1 million, or $0.50 per diluted share, compared with $17.7 million, or $0.58 per diluted share in the first quarter; the decline was driven by credit loss expense of $7.6 million.

Preprovision net revenue¹ grew 3.7%, or $1.0 million, reflecting a 3.7% increase in net interest income, a five basis point increase in the net interest margin, a 4.5% increase in noninterest income and well-managed noninterest expenses with the efficiency ratio remaining unchanged at 55.7%.

Asset quality improved significantly from the first quarter - criticized loans dropped 71.8% to 0.74% of total loans reflecting $85.3 million in loan upgrades of two CRE loans, a $20.0 million loan payment, and an $8.6 million loan charge-off; nonaccrual loans fell 26.8% to 0.41% of total loans reflecting the loan charge-off; and loan delinquencies declined to 0.17% of total loans.

Loans receivables were $6.31 billion at June 30, 2025, up 0.4% from the end of the first quarter of 2025; loan production for the second quarter was $329.6 million, with a weighted average interest rate of 7.10%.

Deposits were $6.73 billion at June 30, 2025, up 1.7% from the end of the first quarter of 2025; noninterest-bearing demand deposits at June 30, 2025 were 31.3% of total deposits.

Hanmi's capital position remains strong with the ratio of tangible common equity to tangible assets² at 9.58% and the common equity tier 1 capital ratio at 12.12%; both essentially unchanged from the first quarter; tangible book value per share³ was $24.91.

____________________________________

_{¹ See non-GAAP reconciliation provided at the end of this news release.}

For more information about Hanmi, please see the Q2 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
	June 30,			March 31,			December 31,			September 30,			June 30,			Q2-25			Q2-25
	2025			2025			2024			2024			2024			vs. Q1-25			vs. Q2-24

Net income	$	15,117		$	17,672		$	17,695		$	14,892		$	14,451		$	(2,555	)	$	666
Net income per diluted common share	$	0.50		$	0.58		$	0.58		$	0.49		$	0.48		$	(0.08	)	$	0.02

Assets	$	7,862,363		$	7,729,035		$	7,677,925		$	7,712,299		$	7,586,347		$	133,328		$	276,016
Loans receivable	$	6,305,957		$	6,282,189		$	6,251,377		$	6,257,744		$	6,176,359		$	23,768		$	129,598
Deposits	$	6,729,122		$	6,619,475		$	6,435,776		$	6,403,221		$	6,329,340		$	109,647		$	399,782

Return on average assets		0.79	%		0.94	%		0.93	%		0.79	%		0.77	%		-0.15			0.02
Return on average stockholders' equity		7.48	%		8.92	%		8.89	%		7.55	%		7.50	%		-1.44			-0.02

Net interest margin		3.07	%		3.02	%		2.91	%		2.74	%		2.69	%		0.05			0.38
Efficiency ratio ⁽¹⁾		55.74	%		55.69	%		56.79	%		59.98	%		62.24	%		0.05			-6.50

Tangible common equity to tangible assets ⁽²⁾		9.58	%		9.59	%		9.41	%		9.42	%		9.19	%		-0.01			0.39
Tangible common equity per common share ⁽²⁾	$	24.91		$	24.49		$	23.88		$	24.03		$	22.99			0.42			1.92

_{⁽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 second quarter was $57.1 million, up 3.7% from $55.1 million for the first quarter of 2025. The increase reflected the benefit of lower rates on interest-bearing liabilities, a higher volume of interest-earning assets and one additional day in the quarter. Average interest-earning assets increased 1.2% while the average yield decreased by one basis point. Average loans receivable increased 1.1% while the average yield decreased by two basis points to 5.93%. Average interest-bearing liabilities increased 0.9% while the average rate paid declined seven basis points. Average interest-bearing deposits, however, increased 3.7% while the average rate paid declined by five basis points to 3.64%, primarily due to lower rates paid on time deposits. Average borrowings fell 66.5% while the average rate paid increased one basis point.

Net interest margin (taxable equivalent) for the second quarter was 3.07%, up five basis points from 3.02% for the first quarter of 2025. The increase in the net interest margin reflected principally the benefit from lower average borrowings and a higher average balance of interest-bearing deposits in other banks.

____________________________________

_{² See non-GAAP reconciliation provided at the end of this news release.}

_{³ See non-GAAP reconciliation provided at the end of this news release.}

	For the Three Months Ended (in thousands)										Percentage Change
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,		Q2-25			Q2-25
Net Interest Income	2025		2025		2024		2024		2024		vs. Q1-25			vs. Q2-24

Interest and fees on loans receivable ⁽¹⁾	$	92,589	$	90,887	$	91,545	$	92,182	$	90,752		1.9	%		2.0	%
Interest on securities		6,261		6,169		5,866		5,523		5,238		1.5	%		19.5	%
Dividends on FHLB stock		354		360		360		356		357		-1.7	%		-0.8	%
Interest on deposits in other banks		2,129		1,841		2,342		2,356		2,313		15.6	%		-8.0	%
Total interest and dividend income	$	101,333	$	99,257	$	100,113	$	100,417	$	98,660		2.1	%		2.7	%

Interest on deposits		41,924		40,559		43,406		47,153		46,495		3.4	%		-9.8	%
Interest on borrowings		684		2,024		1,634		1,561		1,896		-66.2	%		-63.9	%
Interest on subordinated debentures		1,586		1,582		1,624		1,652		1,649		0.3	%		-3.8	%
Total interest expense		44,194		44,165		46,664		50,366		50,040		0.1	%		-11.7	%
Net interest income	$	57,139	$	55,092	$	53,449	$	50,051	$	48,620		3.7	%		17.5	%

_{⁽¹⁾Includes loans held for sale.}

	For the Three Months Ended (in thousands)										Percentage Change
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,		Q2-25			Q2-25
Average Earning Assets and Interest-bearing Liabilities	2025		2025		2024		2024		2024		vs. Q1-25			vs. Q2-24
Loans receivable ⁽¹⁾	$	6,257,741	$	6,189,531	$	6,103,264	$	6,112,324	$	6,089,440		1.1	%		2.8	%
Securities		993,975		1,001,499		998,313		986,041		979,671		-0.8	%		1.5	%
FHLB stock		16,385		16,385		16,385		16,385		16,385		0.0	%		0.0	%
Interest-bearing deposits in other banks		200,266		176,028		204,408		183,027		180,177		13.8	%		11.1	%
Average interest-earning assets	$	7,468,367	$	7,383,443	$	7,322,370	$	7,297,777	$	7,265,673		1.2	%		2.8	%

Demand: interest-bearing	$	81,308	$	79,369	$	79,784	$	83,647	$	85,443		2.4	%		-4.8	%
Money market and savings		2,109,221		2,037,224		1,934,540		1,885,799		1,845,870		3.5	%		14.3	%
Time deposits		2,434,659		2,345,346		2,346,363		2,427,737		2,453,154		3.8	%		-0.8	%
Average interest-bearing deposits		4,625,188		4,461,939		4,360,687		4,397,183		4,384,467		3.7	%		5.5	%
Borrowings		60,134		179,444		141,604		143,479		169,525		-66.5	%		-64.5	%
Subordinated debentures		130,880		130,718		130,567		130,403		130,239		0.1	%		0.5	%
Average interest-bearing liabilities	$	4,816,202	$	4,772,101	$	4,632,858	$	4,671,065	$	4,684,231		0.9	%		2.8	%

Average Noninterest Bearing Deposits
Demand deposits - noninterest bearing	$	1,934,985	$	1,895,953	$	1,967,789	$	1,908,833	$	1,883,765		2.1	%		2.7	%

_{⁽¹⁾Includes loans held for sale.}

	For the Three Months Ended															Yield/Rate Change
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			Q2-25		Q2-25
Average Yields and Rates	2025			2025			2024			2024			2024			vs. Q1-25		vs. Q2-24
Loans receivable ⁽¹⁾		5.93	%		5.95	%		5.97	%		6.00	%		5.99	%		-0.02		-0.06
Securities ⁽²⁾		2.55	%		2.49	%		2.38	%		2.27	%		2.17	%		0.06		0.38
FHLB stock		8.65	%		8.92	%		8.75	%		8.65	%		8.77	%		-0.27		-0.12
Interest-bearing deposits in other banks		4.26	%		4.24	%		4.56	%		5.12	%		5.16	%		0.02		-0.90
Interest-earning assets		5.44	%		5.45	%		5.45	%		5.48	%		5.46	%		-0.01		-0.02

Interest-bearing deposits		3.64	%		3.69	%		3.96	%		4.27	%		4.27	%		-0.05		-0.63
Borrowings		4.58	%		4.57	%		4.59	%		4.33	%		4.50	%		0.01		0.08
Subordinated debentures		4.84	%		4.84	%		4.97	%		5.07	%		5.07	%		0.00		-0.23
Interest-bearing liabilities		3.68	%		3.75	%		4.01	%		4.29	%		4.30	%		-0.07		-0.62

Net interest margin (taxable equivalent basis)		3.07	%		3.02	%		2.91	%		2.74	%		2.69	%		0.05		0.38

Cost of deposits		2.56	%		2.59	%		2.73	%		2.97	%		2.98	%		-0.03		-0.42

_{⁽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 second quarter was $7.6 million, compared with $2.7 million for the first quarter of 2025. The increase in credit loss expense reflected the increase in net charge-offs as well as an increase in quantitative and qualitative estimated loss rates. Net charge-offs included an $8.6 million loan charge-off on the syndicated commercial real estate office loan designated as nonaccrual, with an associated specific allowance of $6.2 million, in the first quarter of 2025. Second quarter credit loss expense included a $7.5 million credit loss expense for loan losses and a $0.1 million credit loss expense for off-balance sheet items. 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 second quarter increased $0.4 million, or 4.5%, to $8.1 million from $7.7 million for the first quarter of 2025. The increase was primarily due to a $0.2 million increase on gains from the sale of SBA loans and an increase in bank-owned life insurance income of $0.4 million from a death benefit claim, partially offset by the absence of gain on sale of mortgage loans. Gain on sales of SBA loans were $2.2 million for the second quarter of 2025, compared with $2.0 million for the first quarter of 2025. The volume of SBA loans sold for the second quarter increased to $35.4 million from $32.2 million for the first quarter of 2025, while trade premiums were 7.61% for the second quarter of 2025 compared with 7.82% for the first quarter. There were no mortgage loans sales during the second quarter, compared with $10.0 million of mortgage loans sold at a 2.50% premium for the first quarter. Gains on mortgage loans sold were $0.2 million for the first quarter. Subsequent to the end of the second quarter, $41.9 million of mortgage loans were sold at a 2.38% premium resulting in a gain of $0.7 million.

	For the Three Months Ended (in thousands)										Percentage Change
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,		Q2-25			Q2-25
Noninterest Income	2025		2025		2024		2024		2024		vs. Q1-25			vs. Q2-24
Service charges on deposit accounts	$	2,169	$	2,217	$	2,192	$	2,311	$	2,429		-2.2	%		-10.7	%
Trade finance and other service charges and fees		1,461		1,396		1,364		1,254		1,277		4.7	%		14.4	%
Servicing income		754		732		668		817		796		3.0	%		-5.3	%
Bank-owned life insurance income		708		309		316		320		638		129.1	%		11.0	%
All other operating income		819		897		1,037		1,008		908		-8.7	%		-9.8	%
Service charges, fees & other		5,911		5,551		5,577		5,710		6,048		6.5	%		-2.3	%

Gain on sale of SBA loans		2,160		2,000		1,443		1,544		1,644		8.0	%		31.4	%
Gain on sale of mortgage loans		-		175		337		324		365		-100.0	%		-100.0	%
Gain on sale of bank premises		-		-		-		860		-		0.0	%		0.0	%
Total noninterest income	$	8,071	$	7,726	$	7,357	$	8,438	$	8,057		4.5	%		0.2	%

Noninterest expense for the second quarter increased $1.3 million to $36.3 million from $35.0 million for the first quarter of 2025. Second quarter noninterest expense was up 3.9% sequentially due to increases in salaries and benefits, professional fees, advertising and promotion and all other operating expenses, partially offset by a $0.6 million gain on sale of other real estate owned. Salaries and benefits increased $1.1 million due to annual merit adjustments and lower capitalized salaries related to loan production. Professional fees increased $0.3 million due to new project activities and fees for services. Advertising and promotion increased $0.2 million primarily due to a new branch opening. All other operating expenses increased $0.4 million due to loan and deposit operating expenses. The efficiency ratio for the second quarter was 55.7%, unchanged from the first quarter of 2025.

	For the Three Months Ended (in thousands)													Percentage Change
	Jun 30,			Mar 31,			Dec 31,			Sep 30,		Jun 30,		Q2-25			Q2-25
	2025			2025			2024			2024		2024		vs. Q1-25			vs. Q2-24
Noninterest Expense
Salaries and employee benefits	$	22,069		$	20,972		$	20,498		$	20,851	$	20,434		5.2	%		8.0	%
Occupancy and equipment		4,344			4,450			4,503			4,499		4,348		-2.4	%		-0.1	%
Data processing		3,727			3,787			3,800			3,839		3,686		-1.6	%		1.1	%
Professional fees		1,725			1,468			1,821			1,492		1,749		17.5	%		-1.4	%
Supplies and communication		515			517			551			538		570		-0.4	%		-9.6	%
Advertising and promotion		798			585			821			631		669		36.4	%		19.3	%
All other operating expenses		3,567			3,175			3,847			2,875		3,251		12.3	%		9.7	%
Subtotal		36,745			34,954			35,841			34,725		34,707		5.1	%		5.9	%

Branch consolidation expense		-			-			-			-		301		0.0	%		-100.0	%
Other real estate owned expense (income)		(461	)		41			(1,588	)		77		6	N/M			N/M
Repossessed personal property expense (income)		63			(11	)		281			278		262		-672.7	%		-76.0	%
Total noninterest expense	$	36,347		$	34,984		$	34,534		$	35,080	$	35,276		3.9	%		3.0	%

Hanmi recorded a provision for income taxes of $6.1 million for the second quarter of 2025, compared with $7.4 million for the first quarter of 2025, representing an effective tax rate of 28.8% and 29.6%, respectively.

Financial Position

Total assets at June 30, 2025 increased 1.7%, or $133.3 million, to $7.86 billion from $7.73 billion at March 31, 2025. The increase reflected a $51.0 million increase in cash, a $37.8 million increase in loans held for sale, a $27.6 million increase in loans, a $11.1 million increase in securities available for sale, and a $6.7 million increase in prepaid expenses and other assets.

Loans receivable, before allowance for credit losses, were $6.31 billion at June 30, 2025, up from $6.28 billion at March 31, 2025.

Loans held-for-sale were $49.6 million at June 30, 2025, up from $11.8 million at March 31, 2025. At the end of the second quarter, loans held-for-sale consisted of $41.9 million of residential mortgage loans and $7.7 million of the guaranteed portion of SBA 7(a) loans.

	As of (in thousands)										Percentage Change
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,		Q2-25			Q2-25
	2025		2025		2024		2024		2024		vs. Q1-25			vs. Q2-24
Loan Portfolio
Commercial real estate loans	$	3,948,922	$	3,975,651	$	3,949,622	$	3,932,088	$	3,888,505		-0.7	%		1.6	%
Residential/consumer loans		993,869		979,536		951,302		939,285		954,209		1.5	%		4.2	%
Commercial and industrial loans		917,995		854,406		863,431		879,092		802,372		7.4	%		14.4	%
Equipment finance		445,171		472,596		487,022		507,279		531,273		-5.8	%		-16.2	%
Loans receivable		6,305,957		6,282,189		6,251,377		6,257,744		6,176,359		0.4	%		2.1	%
Loans held for sale		49,611		11,831		8,579		54,336		10,467		319.3	%		374.0	%
Total	$	6,355,568	$	6,294,020	$	6,259,956	$	6,312,080	$	6,186,826		1.0	%		2.7	%

	As of
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,
	2025			2025			2024			2024			2024
Composition of Loan Portfolio
Commercial real estate loans		62.2	%		63.1	%		63.1	%		62.3	%		62.9	%
Residential/consumer loans		15.6	%		15.6	%		15.2	%		14.9	%		15.4	%
Commercial and industrial loans		14.4	%		13.6	%		13.8	%		13.9	%		13.0	%
Equipment finance		7.0	%		7.5	%		7.8	%		8.0	%		8.5	%
Loans receivable		99.2	%		99.8	%		99.9	%		99.1	%		99.8	%
Loans held for sale		0.8	%		0.2	%		0.1	%		0.9	%		0.2	%
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

New loan production was $329.6 million for the second quarter of 2025 with an average rate of 7.10%, while payoffs were $119.1 million during the quarter at an average rate of 6.47%.

Commercial real estate loan production for the second quarter of 2025 was $112.0 million. Residential mortgage loan production was $83.8 million. Commercial and industrial loan production was $53.4 million, SBA loan production was $46.8 million, and equipment finance production was $33.6 million.

	For the Three Months Ended (in thousands)
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,
	2025			2025			2024			2024			2024
New Loan Production
Commercial real estate loans	$	111,993		$	146,606		$	146,716		$	110,246		$	87,632
Residential/consumer loans		83,761			55,000			40,225			40,758			30,194
Commercial and industrial loans		53,444			42,344			60,159			105,086			59,007
SBA loans		46,829			55,242			49,740			51,616			54,486
Equipment finance		33,567			46,749			42,168			40,066			42,594
Subtotal		329,594			345,941			339,008			347,772			273,913


Payoffs		(119,139	)		(125,102	)		(137,933	)		(77,603	)		(148,400	)
Amortization		(151,357	)		(90,743	)		(60,583	)		(151,674	)		(83,640	)
Loan sales		(35,388	)		(42,193	)		(67,852	)		(43,868	)		(42,945	)
Net line utilization		12,435			(53,901	)		(75,651	)		9,426			1,929
Charge-offs & OREO		(12,377	)		(3,190	)		(3,356	)		(2,668	)		(2,338	)

Loans receivable-beginning balance		6,282,189			6,251,377			6,257,744			6,176,359			6,177,840
Loans receivable-ending balance	$	6,305,957		$	6,282,189		$	6,251,377		$	6,257,744		$	6,176,359

Deposits were $6.73 billion at the end of the second quarter of 2025, up $109.6 million, or 1.7%, from $6.62 billion at the end of the prior quarter. Driving the change was a $42.7 million increase in time deposits, a $38.7 million increase in noninterest-bearing demand deposits and a $18.9 million increase in money market and savings deposits. Noninterest-bearing demand deposits represented 31.3% of total deposits at June 30, 2025 and the loan-to-deposit ratio was 93.7%.

	As of (in thousands)										Percentage Change
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,		Q2-25			Q2-25
	2025		2025		2024		2024		2024		vs. Q1-25			vs. Q2-24
Deposit Portfolio
Demand: noninterest-bearing	$	2,105,369	$	2,066,659	$	2,096,634	$	2,051,790	$	1,959,963		1.9	%		7.4	%
Demand: interest-bearing		90,172		80,790		80,323		79,287		82,981		11.6	%		8.7	%
Money market and savings		2,092,847		2,073,943		1,933,535		1,898,834		1,834,797		0.9	%		14.1	%
Time deposits		2,440,734		2,398,083		2,325,284		2,373,310		2,451,599		1.8	%		-0.4	%
Total deposits	$	6,729,122	$	6,619,475	$	6,435,776	$	6,403,221	$	6,329,340		1.7	%		6.3	%

	As of
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,
	2025			2025			2024			2024			2024
Composition of Deposit Portfolio
Demand: noninterest-bearing		31.3	%		31.2	%		32.6	%		32.0	%		31.0	%
Demand: interest-bearing		1.3	%		1.2	%		1.2	%		1.2	%		1.3	%
Money market and savings		31.1	%		31.3	%		30.0	%		29.7	%		29.0	%
Time deposits		36.3	%		36.3	%		36.2	%		37.1	%		38.7	%
Total deposits		100.0	%		100.0	%		100.1	%		100.0	%		100.0	%

Stockholders' equity at June 30, 2025 was $762.8 million, up $11.3 million from $751.5 million at March 31, 2025. The increase included net income, net of dividends paid, of $7.0 million for the second quarter. In addition, the increase in stockholders' equity included a $5.5 million decrease in unrealized after-tax losses on securities available for sale, due to changes in interest rates during the second quarter of 2025. Hanmi also repurchased 70,000 shares of common stock at a cost of $1.6 million, for an average share price of $23.26, during the quarter. At June 30, 2025, 1,110,500 shares remain under Hanmi's share repurchase program. Tangible common stockholders' equity was $751.8 million, or 9.58% of tangible assets at June 30, 2025 compared with $740.5 million, or 9.59% 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 June 30, 2025, Hanmi's preliminary common equity tier 1 capital ratio was 12.12% and its total risk-based capital ratio was 15.20%, compared with 12.12% and 15.28%, respectively, at the end of the prior quarter.

	As of															Ratio Change
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			Q2-25		Q2-25
	2025			2025			2024			2024			2024			vs. Q1-25		vs. Q2-24
Regulatory Capital ratios ⁽¹⁾
Hanmi Financial
Total risk-based capital		15.20	%		15.28	%		15.24	%		15.03	%		15.24	%		-0.08		-0.04
Tier 1 risk-based capital		12.46	%		12.46	%		12.46	%		12.29	%		12.46	%		0.00		0.00
Common equity tier 1 capital		12.12	%		12.12	%		12.11	%		11.95	%		12.11	%		0.00		0.01
Tier 1 leverage capital ratio		10.63	%		10.67	%		10.63	%		10.56	%		10.51	%		-0.04		0.12
Hanmi Bank
Total risk-based capital		14.39	%		14.47	%		14.43	%		14.27	%		14.51	%		-0.08		-0.12
Tier 1 risk-based capital		13.32	%		13.34	%		13.36	%		13.23	%		13.47	%		-0.02		-0.15
Common equity tier 1 capital		13.32	%		13.34	%		13.36	%		13.23	%		13.47	%		-0.02		-0.15
Tier 1 leverage capital ratio		11.43	%		11.49	%		11.47	%		11.43	%		11.41	%		-0.06		0.02

_{⁽¹⁾Preliminary ratios for June 30, 2025}

Asset Quality

Loans 30 to 89 days past due and still accruing were 0.17% of loans at the end of the second quarter of 2025, compared with 0.28% at the end of the prior quarter.

Criticized loans totaled $46.6 million at June 30, 2025, down from $164.9 million at the end of the prior quarter. The $118.3 million decrease resulted from a $105.7 million decrease in special mention loans, and a $12.6 million decrease in classified loans. The $105.7 million decrease in special mention loans included loan upgrades of $85.3 million of two commercial real estate loans, paydowns of $20.0 million and amortization of $0.7 million, offset by downgrades of $0.3 million. The $12.6 million decrease in classified loans resulted from $8.7 million of loan charge-offs (primarily due to the previously mentioned $8.6 million commercial real estate loan charge-off), $2.9 million of equipment financing charge-offs, $1.6 million of amortization/paydowns, $4.0 million of loan upgrades and, $0.2 million of payoffs, offset by $4.8 million in additions. Additions included newly classified equipment financing agreements of $2.4 million and loan downgrades of $2.4 million.

Nonperforming loans were $26.0 million at June 30, 2025, down from $35.6 million at the end of the prior quarter. The $9.6 million decrease primarily reflected charge-offs of $11.6 million, $1.3 million in paydowns, loan upgrades of $1.0 million, and pay-offs of $0.2 million. Additions included $2.1 million of loans and $2.5 million of equipment financing agreements.

Nonperforming assets were $26.0 million at June 30, 2025, down from $35.7 million at the end of the prior quarter. As a percentage of total assets, nonperforming assets were 0.33% at June 30, 2025, and 0.46% at the end of the prior quarter.

Gross charge-offs for the second quarter of 2025 were $12.4 million, compared with $3.2 million for the preceding quarter. The increase in gross charge-offs was primarily due to a $8.6 million charge-off on a commercial real estate loan designated as nonaccrual during the first quarter of 2025. Charge-offs during the second quarter also included $2.9 million on equipment financing agreements. Recoveries of previously charged-off loans were $1.0 million in the second quarter of 2025, which included $0.6 million of recoveries on equipment financing agreements. As a result, there were $11.4 million of net charge-offs for the second quarter of 2025, compared to $1.9 million for the prior quarter.

The allowance for credit losses was $66.8 million at June 30, 2025, compared with $70.6 million at March 31, 2025. Collectively evaluated allowances increased $3.8 million and specific allowances for loans decreased $7.6 million. The decrease in specific allowances was a result of the previously mentioned $8.6 million charge-off. The ratio of the allowance for credit losses to loans was 1.06% at June 30, 2025 and 1.12% at the end of the prior quarter.

	As of or for the Three Months Ended (in thousands)															Amount Change
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			Q2-25			Q2-25
	2025			2025			2024			2024			2024			vs. Q1-25			vs. Q2-24
Asset Quality Data and Ratios

Delinquent loans:
Loans, 30 to 89 days past due and still accruing	$	10,953		$	17,312		$	18,454		$	15,027		$	13,844		$	(6,359	)	$	(2,891	)
Delinquent loans to total loans		0.17	%		0.28	%		0.30	%		0.24	%		0.22	%		(0.11	)		(0.05	)

Criticized loans:
Special mention	$	12,701		$	118,380		$	139,612		$	131,575		$	36,921		$	(105,679	)	$	(24,220	)
Classified		33,857			46,519			25,683			28,377			33,945			(12,662	)		(88	)
Total criticized loans ⁽¹⁾	$	46,558		$	164,899		$	165,295		$	159,952		$	70,866		$	(118,341	)	$	(24,308	)

Criticized loans to total loans		0.74	%		2.62	%		2.64	%		2.56	%		1.15	%		(1.88	)		(0.41	)

Nonperforming assets:
Nonaccrual loans	$	25,968		$	35,459		$	14,272		$	15,248		$	19,245		$	(9,491	)	$	6,723
Loans 90 days or more past due and still accruing		-			112			-			242			-			(112	)		-
Nonperforming loans ⁽²⁾		25,968			35,571			14,272			15,490			19,245			(9,603	)		6,723
Other real estate owned, net		-			117			117			772			772			(117	)		(772	)
Nonperforming assets ⁽³⁾	$	25,968		$	35,688		$	14,389		$	16,262		$	20,017		$	(9,720	)	$	5,951

Nonperforming assets to assets ⁽²⁾		0.33	%		0.46	%		0.19	%		0.21	%		0.26	%		-0.13			0.07
Nonperforming loans to total loans		0.41	%		0.57	%		0.23	%		0.25	%		0.31	%		-0.16			0.10

_{⁽¹⁾Includes nonaccrual loans of $24.1 million, $34.4 million, $13.4 million, $13.6 million, and $18.4 million as of Q2-25, Q1-25, Q4-24, Q3-24, and Q2-24, respectively.}
_{⁽²⁾Excludes a $27.2 million nonperforming loan held-for-sale as of September 30, 2024.}
_{⁽³⁾Excludes repossessed personal property of $0.6 million, $0.7 million, $0.6 million, $1.2 million, and $1.2 million as of Q2-25, Q1-25, Q4-24, Q3-24, and Q2-24, respectively.}

	As of or for the Three Months Ended (in thousands)
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,
	2025			2025			2024			2024			2024
Allowance for credit losses related to loans:
Balance at beginning of period	$	70,597		$	70,147		$	69,163		$	67,729		$	68,270
Credit loss expense (recovery) on loans		7,524			2,396			855			2,312			1,248
Net loan (charge-offs) recoveries		(11,365	)		(1,946	)		129			(878	)		(1,789	)
Balance at end of period	$	66,756		$	70,597		$	70,147		$	69,163		$	67,729

Net loan charge-offs (recoveries) to average loans ⁽¹⁾		0.73	%		0.13	%		-0.01	%		0.06	%		0.12	%
Allowance for credit losses to loans		1.06	%		1.12	%		1.12	%		1.11	%		1.10	%

Allowance for credit losses related to off-balance sheet items:
Balance at beginning of period	$	2,399		$	2,074		$	1,984		$	2,010		$	2,297
Credit loss expense (recovery) on off-balance sheet items		107			325			90			(26	)		(287	)
Balance at end of period	$	2,506		$	2,399		$	2,074		$	1,984		$	2,010

Unused commitments to extend credit	$	915,847		$	896,282		$	782,587		$	739,975		$	795,391

_{⁽¹⁾Annualized}

Corporate Developments

On April 24, 2025, Hanmi's Board of Directors declared a cash dividend on its common stock for the 2025 second quarter of $0.27 per share. Hanmi paid the dividend on May 21, 2025, to stockholders of record as of the close of business on May 5, 2025.

Earnings Conference Call

Hanmi Bank will host its second quarter 2025 earnings conference call today, July 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 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;
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 and retaliatory responses;
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 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; 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.

[email protected]

310-622-8251

Hanmi Financial Corporation and Subsidiaries

Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)

	June 30,			March 31,			Percentage			June 30,			Percentage
	2025			2025			Change			2024			Change
Assets
Cash and due from banks	$	380,050		$	329,003			15.5	%	$	313,079			21.4	%
Securities available for sale, at fair value		918,094			907,011			1.2	%		877,638			4.6	%
Loans held for sale, at the lower of cost or fair value		49,611			11,831			319.3	%		10,467			374.0	%
Loans receivable, net of allowance for credit losses		6,239,201			6,211,592			0.4	%		6,108,630			2.1	%
Accrued interest receivable		23,749			23,536			0.9	%		23,958			-0.9	%
Premises and equipment, net		20,607			20,866			-1.2	%		21,955			-6.1	%
Customers' liability on acceptances		214			552			-61.2	%		551			-61.2	%
Servicing assets		6,420			6,422			0.0	%		6,836			-6.1	%
Goodwill and other intangible assets, net		11,031			11,031			0.0	%		11,048			-0.2	%
Federal Home Loan Bank ("FHLB") stock, at cost		16,385			16,385			0.0	%		16,385			0.0	%
Bank-owned life insurance		56,985			57,476			-0.9	%		56,534			0.8	%
Prepaid expenses and other assets		140,016			133,330			5.0	%		139,266			0.5	%
Total assets	$	7,862,363		$	7,729,035			1.7	%	$	7,586,347			3.6	%

Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	$	2,105,369		$	2,066,659			1.9	%	$	1,959,963			7.4	%
Interest-bearing		4,623,753			4,552,816			1.6	%		4,369,377			5.8	%
Total deposits		6,729,122			6,619,475			1.7	%		6,329,340			6.3	%
Accrued interest payable		30,567			29,646			3.1	%		47,699			-35.9	%
Bank's liability on acceptances		214			552			-61.2	%		551			-61.2	%
Borrowings		127,500			117,500			8.5	%		292,500			-56.4	%
Subordinated debentures		130,960			130,799			0.1	%		130,318			0.5	%
Accrued expenses and other liabilities		81,166			79,578			2.0	%		78,880			2.9	%
Total liabilities		7,099,529			6,977,550			1.7	%		6,879,288			3.2	%

Stockholders' equity:
Common stock		34			34			0.0	%		34			0.0	%
Additional paid-in capital		592,825			591,942			0.1	%		588,647			0.7	%
Accumulated other comprehensive (loss)		(54,511	)		(60,002	)		9.2	%		(78,000	)		30.1	%
Retained earnings		367,251			360,289			1.9	%		333,392			10.2	%
Less treasury stock		(142,765	)		(140,778	)		-1.4	%		(137,014	)		-4.2	%
Total stockholders' equity		762,834			751,485			1.5	%		707,059			7.9	%
Total liabilities and stockholders' equity	$	7,862,363		$	7,729,035			1.7	%	$	7,586,347			3.6	%

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)

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

	Three Months Ended
	June 30,		March 31,		Percentage			June 30,		Percentage
	2025		2025		Change			2024		Change
Interest and dividend income:
Interest and fees on loans receivable	$	92,589	$	90,887		1.9	%	$	90,752		2.0	%
Interest on securities		6,261		6,169		1.5	%		5,238		19.5	%
Dividends on FHLB stock		354		360		-1.7	%		357		-0.8	%
Interest on deposits in other banks		2,129		1,841		15.6	%		2,313		-8.0	%
Total interest and dividend income		101,333		99,257		2.1	%		98,660		2.7	%
Interest expense:
Interest on deposits		41,924		40,559		3.4	%		46,495		-9.8	%
Interest on borrowings		684		2,024		-66.2	%		1,896		-63.9	%
Interest on subordinated debentures		1,586		1,582		0.3	%		1,649		-3.8	%
Total interest expense		44,194		44,165		0.1	%		50,040		-11.7	%
Net interest income before credit loss expense		57,139		55,092		3.7	%		48,620		17.5	%
Credit loss expense		7,631		2,721		180.4	%		961		694.1	%
Net interest income after credit loss expense		49,508		52,371		-5.5	%		47,659		3.9	%
Noninterest income:
Service charges on deposit accounts		2,169		2,217		-2.2	%		2,429		-10.7	%
Trade finance and other service charges and fees		1,461		1,396		4.7	%		1,277		14.4	%
Gain on sale of Small Business Administration ("SBA") loans		2,160		2,000		8.0	%		1,644		31.4	%
Other operating income		2,281		2,113		8.0	%		2,707		-15.7	%
Total noninterest income		8,071		7,726		4.5	%		8,057		0.2	%
Noninterest expense:
Salaries and employee benefits		22,069		20,972		5.2	%		20,434		8.0	%
Occupancy and equipment		4,344		4,450		-2.4	%		4,607		-5.7	%
Data processing		3,727		3,787		-1.6	%		3,686		1.1	%
Professional fees		1,725		1,468		17.5	%		1,749		-1.4	%
Supplies and communications		515		517		-0.4	%		570		-9.6	%
Advertising and promotion		798		585		36.4	%		669		19.3	%
Other operating expenses		3,169		3,205		-1.1	%		3,561		-11.0	%
Total noninterest expense		36,347		34,984		3.9	%		35,276		3.0	%
Income before tax		21,232		25,113		-15.5	%		20,440		3.9	%
Income tax expense		6,115		7,441		-17.8	%		5,989		2.1	%
Net income	$	15,117	$	17,672		-14.5	%	$	14,451		4.6	%

Basic earnings per share:	$	0.50	$	0.59				$	0.48
Diluted earnings per share:	$	0.50	$	0.58				$	0.48

Weighted-average shares outstanding:
Basic		29,948,836		29,937,660					30,055,913
Diluted		30,054,456		30,058,248					30,133,646
Common shares outstanding		30,176,568		30,233,514					30,272,110

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)

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

	Six Months Ended
	June 30,		June 30,		Percentage
	2025		2024		Change
Interest and dividend income:
Interest and fees on loans receivable	$	183,476	$	182,427		0.6	%
Interest on securities		12,430		10,193		21.9	%
Dividends on FHLB stock		714		719		-0.7	%
Interest on deposits in other banks		3,969		4,914		-19.2	%
Total interest and dividend income		200,589		198,253		1.2	%
Interest expense:
Interest on deposits		82,483		92,133		-10.5	%
Interest on borrowings		2,708		3,551		-23.7	%
Interest on subordinated debentures		3,167		3,295		-3.9	%
Total interest expense		88,358		98,979		-10.7	%
Net interest income before credit loss expense		112,231		99,274		13.1	%
Credit loss expense		10,352		1,188		771.4	%
Net interest income after credit loss expense		101,879		98,086		3.9	%
Noninterest income:
Service charges on deposit accounts		4,387		4,878		-10.1	%
Trade finance and other service charges and fees		2,858		2,691		6.2	%
Gain on sale of Small Business Administration ("SBA") loans		4,161		3,126		33.1	%
Other operating income		4,390		5,095		-13.8	%
Total noninterest income		15,796		15,790		0.0	%
Noninterest expense:
Salaries and employee benefits		43,041		42,019		2.4	%
Occupancy and equipment		8,794		9,144		-3.8	%
Data processing		7,514		7,237		3.8	%
Professional fees		3,194		3,642		-12.3	%
Supplies and communications		1,031		1,172		-12.0	%
Advertising and promotion		1,382		1,576		-12.3	%
Other operating expenses		6,374		6,930		-8.0	%
Total noninterest expense		71,330		71,720		-0.5	%
Income before tax		46,345		42,156		9.9	%
Income tax expense		13,556		12,541		8.1	%
Net income	$	32,789	$	29,615		10.7	%

Basic earnings per share:	$	1.09	$	0.98
Diluted earnings per share:	$	1.08	$	0.97

Weighted-average shares outstanding:
Basic		29,943,279		30,089,341
Diluted		30,048,704		30,166,181
Common shares outstanding		30,176,568		30,272,110

Hanmi Financial Corporation and Subsidiaries

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

(Dollars in thousands)

	Three Months Ended
	June 30, 2025								March 31, 2025								June 30, 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⁾	$	6,257,741		$	92,589		5.93	%	$	6,189,531		$	90,887		5.95	%	$	6,089,440		$	90,752		5.99	%
Securities ⁽²⁾		993,975			6,261		2.55	%		1,001,499			6,169		2.49	%		979,671			5,238		2.17	%
FHLB stock		16,385			354		8.65	%		16,385			360		8.92	%		16,385			357		8.77	%
Interest-bearing deposits in other banks		200,266			2,129		4.26	%		176,028			1,841		4.24	%		180,177			2,313		5.16	%
Total interest-earning assets		7,468,367			101,333		5.44	%		7,383,443			99,257		5.45	%		7,265,673			98,660		5.46	%

Noninterest-earning assets:
Cash and due from banks		53,977								53,670								55,442
Allowance for credit losses		(70,222	)							(69,648	)							(67,908	)
Other assets		250,241								249,148								252,410

Total assets	$	7,702,363							$	7,616,613							$	7,505,617

Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	81,308		$	29		0.15	%	$	79,369		$	27		0.14	%	$	85,443		$	32		0.15	%
Money market and savings		2,109,221			17,342		3.30	%		2,037,224			16,437		3.27	%		1,845,870			17,324		3.77	%
Time deposits		2,434,659			24,553		4.05	%		2,345,346			24,095		4.17	%		2,453,154			29,139		4.78	%
Total interest-bearing deposits		4,625,188			41,924		3.64	%		4,461,939			40,559		3.69	%		4,384,467			46,495		4.27	%
Borrowings		60,134			684		4.58	%		179,444			2,024		4.57	%		169,525			1,896		4.50	%
Subordinated debentures		130,880			1,586		4.84	%		130,718			1,582		4.84	%		130,239			1,649		5.07	%
Total interest-bearing liabilities		4,816,202			44,194		3.68	%		4,772,101			44,165		3.75	%		4,684,231			50,040		4.30	%

Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,934,985								1,895,953								1,883,765
Other liabilities		140,053								144,654								162,543
Stockholders' equity		811,123								803,905								775,078

Total liabilities and stockholders' equity	$	7,702,363							$	7,616,613							$	7,505,617

Net interest income				$	57,139							$	55,092							$	48,620

Cost of deposits							2.56	%							2.59	%							2.98	%
Net interest spread (taxable equivalent basis)							1.76	%							1.70	%							1.16	%
Net interest margin (taxable equivalent basis)							3.07	%							3.02	%							2.69	%

_{⁽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.}

Hanmi Financial Corporation and Subsidiaries

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

(Dollars in thousands)

	Six Months Ended
	June 30, 2025								June 30, 2024
				Interest		Average						Interest		Average
	Average			Income /		Yield /			Average			Income /		Yield /
	Balance			Expense		Rate			Balance			Expense		Rate
Assets
Interest-earning assets:
Loans receivable ⁽¹⁾	$	6,223,825		$	183,476		5.94	%	$	6,113,664		$	182,427		6.00	%
Securities ⁽²⁾		997,716			12,430		2.52	%		974,596			10,193		2.12	%
FHLB stock		16,385			714		8.79	%		16,385			719		8.82	%
Interest-bearing deposits in other banks		188,214			3,969		4.25	%		190,950			4,914		5.18	%
Total interest-earning assets		7,426,140			200,589		5.44	%		7,295,595			198,253		5.46	%

Noninterest-earning assets:
Cash and due from banks		53,824								56,912
Allowance for credit losses		(69,936	)							(68,507	)
Other assets		249,697								248,555

Total assets	$	7,659,725							$	7,532,555

Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	80,344		$	56		0.14	%	$	85,922		$	61		0.14	%
Money market and savings		2,073,421			33,779		3.29	%		1,830,478			33,877		3.72	%
Time deposits		2,390,249			48,648		4.10	%		2,480,492			58,195		4.72	%
Total interest-bearing deposits		4,544,014			82,483		3.66	%		4,396,892			92,133		4.21	%
Borrowings		119,460			2,708		4.57	%		165,972			3,551		4.30	%
Subordinated debentures		130,799			3,167		4.84	%		130,163			3,295		5.06	%
Total interest-bearing liabilities		4,794,273			88,358		3.72	%		4,693,027			98,979		4.24	%

Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,915,577								1,902,477
Other liabilities		142,341								163,533
Stockholders' equity		807,534								773,518

Total liabilities and stockholders' equity	$	7,659,725							$	7,532,555

Net interest income				$	112,231							$	99,274

Cost of deposits							2.58	%							2.94	%
Net interest spread (taxable equivalent basis)							1.73	%							1.22	%
Net interest margin (taxable equivalent basis)							3.05	%							2.74	%

_{⁽¹⁾Includes average loans held for sale}
_{⁽²⁾Amounts 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)

	June 30,			March 31,			December 31,			September 30,			June 30,
Hanmi Financial Corporation	2025			2025			2024			2024			2024
Assets	$	7,862,363		$	7,729,035		$	7,677,925		$	7,712,299		$	7,586,347
Less goodwill and other intangible assets		(11,031	)		(11,031	)		(11,031	)		(11,031	)		(11,048	)
Tangible assets	$	7,851,332		$	7,718,004		$	7,666,894		$	7,701,268		$	7,575,299

Stockholders' equity ⁽¹⁾	$	762,834		$	751,485		$	732,174		$	736,709		$	707,059
Less goodwill and other intangible assets		(11,031	)		(11,031	)		(11,031	)		(11,031	)		(11,048	)
Tangible stockholders' equity ⁽¹⁾	$	751,803		$	740,454		$	721,143		$	725,678		$	696,011

Stockholders' equity to assets		9.70	%		9.72	%		9.54	%		9.55	%		9.32	%
Tangible common equity to tangible assets ⁽¹⁾		9.58	%		9.59	%		9.41	%		9.42	%		9.19	%

Common shares outstanding		30,176,568			30,233,514			30,195,999			30,196,755			30,272,110
Tangible common equity per common share	$	24.91		$	24.49		$	23.88		$	24.03		$	22.99

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

Preprovision Net Revenue

Preprovision net revenue 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 revenue, management can better understand the Company's profitability and make more informed strategic decisions. Preprovision net revenue is calculated adding income tax expense and credit loss expense to net income. Management believes this financial measure highlights the Company's net revenue activities and operational efficiency, excluding unpredictable credit loss expense.

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

Preprovision Net Revenue (Unaudited)

(In thousands, except percentages)

											Percentage Change
	June 30,		March 31,		December 31,		September 30,		June 30,		Q2-25			Q2-25
Hanmi Financial Corporation	2025		2025		2024		2024		2024		vs. Q1-25			vs. Q2-24
Net income	$	15,117	$	17,672	$	17,695	$	14,892	$	14,451
Add back:
Credit loss expense		7,631		2,721		945		2,286		961
Income tax expense		6,115		7,441		7,632		6,231		5,989
Preprovision net revenue	$	28,863	$	27,834	$	26,272	$	23,409	$	21,401		3.7	%		34.9	%

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Date	Price Target	Rating	Analyst
12/4/2024	$24.00 → $29.00	Outperform → Mkt Perform	Keefe Bruyette
11/15/2024		Neutral → Buy	Janney
10/24/2024	$20.00 → $25.50	Neutral → Overweight	Piper Sandler
10/2/2024	$20.00 → $22.00	Mkt Perform → Outperform	Keefe Bruyette
5/18/2022	$25.00	Buy → Neutral	DA Davidson
1/26/2022	$24.00 → $29.00	Buy	JonesTrading
11/15/2021	$24.00 → $28.00	Neutral → Buy	DA Davidson
11/15/2021		Neutral → Buy	DA Davidson

Hanmi Reports 2025 Second Quarter Results

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Insider Trading

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Director Yang Michael was granted 2,849 shares, increasing direct ownership by 10% to 30,325 units (SEC Form 4)

Director Williams Thomas James was granted 2,849 shares, increasing direct ownership by 12% to 26,325 units (SEC Form 4)

Director Marasco James A was granted 2,849 shares, increasing direct ownership by 71% to 6,889 units (SEC Form 4)

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Hanmi Financial Declares Cash Dividend of $0.27 per share