Hanmi Reports 2025 Second Quarter Results

Rhea-AI Summary

Hanmi Financial (NASDAQ: HAFC) reported Q2 2025 net income of $15.1 million, or $0.50 per diluted share, down from $17.7 million ($0.58/share) in Q1 2025. The bank's performance showed mixed results with some notable improvements in key metrics.

Net interest margin expanded to 3.07%, while loans grew 1.6% annualized to $6.31 billion. Deposits increased 1.7% to $6.73 billion, with noninterest-bearing deposits representing 31.3% of total deposits. The quarter was marked by significant credit quality improvements, with criticized loans dropping 71.8% to 0.74% of total loans.

The bank maintained strong capital positions with tangible common equity to tangible assets at 9.58% and common equity tier 1 capital ratio at 12.12%. However, earnings were impacted by increased credit loss expense of $7.6 million, compared to $2.7 million in Q1.

Positive

• None.

Negative

• Net income declined to $15.1 million from $17.7 million in Q1 2025
• Credit loss expense increased significantly to $7.6 million from $2.7 million in Q1
• Return on average assets decreased to 0.79% from 0.94% in Q1
• Return on average equity declined to 7.48% from 8.92% in Q1
• $8.6 million loan charge-off on syndicated commercial real estate office loan

Insights

Banking Financial Analyst

Hanmi's Q2 2025 showed mixed results with declining profits but improving NIM and asset quality amid higher credit loss expenses.

Hanmi Financial Corporation reported Q2 2025 net income of $15.1 million ($0.50 per share), down from $17.7 million ($0.58 per share) in Q1 2025. The 14.4% profit decline was primarily driven by elevated credit loss expenses of $7.6 million, compared to $2.7 million in the previous quarter.

Despite the earnings decline, several positive trends emerged. The bank's net interest margin improved 5 basis points to 3.07%, driven by lower funding costs. Net interest income grew by 3.7% to $57.1 million, and noninterest income increased 4.5% to $8.1 million. The efficiency ratio remained stable at 55.7%.

Asset quality metrics showed significant improvement. Criticized loans dropped dramatically by 71.8% to just 0.74% of total loans, reflecting $85.3 million in loan upgrades, 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.

The bank's balance sheet continued to strengthen with loans increasing 0.4% to $6.31 billion and deposits growing 1.7% to $6.73 billion. Notably, noninterest-bearing deposits represented 31.3% of total deposits, providing a stable, low-cost funding source. Capital ratios remained strong with tangible common equity to tangible assets at 9.58% and tangible book value per share at $24.91.

The quarter's loan production was $329.6 million with a weighted average interest rate of 7.10%, showing Hanmi's ability to originate loans at attractive yields. SBA loan sales increased to $35.4 million from $32.2 million in Q1, generating $2.2 million in gains. The bank also noted post-quarter-end mortgage loan sales of $41.9 million that will boost Q3 results with a $0.7 million gain.

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.
lfortuna@finprofiles.com
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	%

FAQ

What was Hanmi Financial's (HAFC) earnings per share in Q2 2025?

Hanmi reported earnings of $0.50 per diluted share in Q2 2025, down from $0.58 in Q1 2025.

How much did Hanmi's (HAFC) deposits grow in Q2 2025?

Deposits grew 1.7% to $6.73 billion, with noninterest-bearing deposits representing 31.3% of total deposits.

What was HAFC's net interest margin in Q2 2025?

Net interest margin was 3.07%, an increase of 5 basis points from 3.02% in Q1 2025.

How did Hanmi's credit quality change in Q2 2025?

Credit quality improved significantly with criticized loans dropping 71.8% to 0.74% of total loans, and nonaccrual loans decreasing 26.8% to 0.41% of total loans.

What was Hanmi's loan growth in Q2 2025?

Loans grew at an annualized rate of 1.6% to $6.31 billion, with loan production of $329.6 million at a weighted average interest rate of 7.10%.