Hanmi Reports 2026 Third Quarter Results

Q: What were Hanmi Financial's third-quarter 2026 earnings?

Hanmi earned $23.7 million, or $0.80 per diluted share, in the third quarter of 2026. Second-quarter earnings were $23.5 million, or $0.79 per diluted share.

Q: How much did Hanmi Financial pay in dividends in Q3 2026?

Hanmi paid $8.3 million in dividends during the third quarter of 2026. Together with $4.9 million in share repurchases, shareholder returns represented 55.6% of quarterly earnings.

Q: What were Hanmi Financial's nonperforming loan and capital ratios in Q3 2026?

Hanmi's nonperforming loans were 0.14% of total loans, and its common equity Tier 1 capital ratio was 12.30%. Nonperforming assets were unchanged sequentially at 0.12% of total assets.

Higher lending income and fee revenue were partly offset by increased credit loss expense tied to a commercial real estate loan.

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Rhea-AI Summary

Hanmi Financial (HAFC) reported third-quarter 2026 net income of $23.7 million, a modest increase from the second quarter. Diluted earnings per share rose to $0.80 from $0.79. Net interest income increased 5.8% sequentially to $67.6 million, and net interest margin widened eight basis points to 3.44%. Noninterest income rose 8.2% to $9.0 million.

Deposits grew 1.4% to $7.06 billion, while loans increased 0.5% to $6.57 billion as higher payoffs partly offset new production. Credit loss expense rose to $4.5 million from $1.2 million, including a $3.2 million charge-off on a commercial real estate loan moved to held-for-sale. Nonperforming assets remained at 0.12% of total assets. Hanmi returned 55.6% of quarterly earnings through dividends and share repurchases. Return on average assets declined to 1.17% from 1.20%, and return on average equity fell to 10.90% from 11.09%.

17 points · 0 major

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0 major · 10 points

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Positive

Moderate pointThird-quarter net income increased 0.8% sequentially to $23.7 million; diluted EPS rose to $0.80 from $0.79.
Moderate pointNet interest income rose 5.8% sequentially and 10.6% year over year to $67.6 million.
Moderate pointNet interest margin reached 3.44%, versus 3.36% in Q2 2026 and 3.22% in Q3 2025.
Moderate pointPreprovision net revenue, a non-GAAP measure, increased 10.8% sequentially in Q3 2026.
Moderate pointNoninterest income increased 8.2% sequentially to $9.0 million in Q3 2026.
Moderate pointQuarter-end deposits grew 1.4% sequentially to $7.06 billion, with core deposits up 1.9%.
Moderate pointQuarter-end loans increased 0.5% sequentially to $6.57 billion.
Moderate pointNew loan production reached $544 million, increasing 46.2% sequentially.
Moderate pointAverage loan yield rose to 6.03% from 5.90% in Q2 2026.
Moderate pointEfficiency ratio, expenses divided by revenue, improved to 52.02% from 54.07% in Q2 2026.

7 minor points

Minor pointSBA loan-sale gains rose to $2.3 million from $1.3 million in Q2 2026.
Minor pointSBA loan sales increased to $34.0 million from $20.9 million; trade premiums rose to 8.10% from 7.92% sequentially.
Minor pointOther operating income increased $0.4 million sequentially from higher interchange fees.
Minor pointAverage interest-earning assets increased 2.4% sequentially, funded by 2.8% growth in average deposits.
Minor pointAverage loans to average deposits declined to 93.1% from 95.5% in Q2 2026.
Minor pointAverage borrowings fell to zero from $15.330 million in Q2 2026.
Minor pointThird-quarter share repurchases returned $4.9 million to shareholders.

Negative

Moderate pointCredit loss expense increased to $4.5 million from $1.2 million in Q2 2026.
Moderate pointReturn on average assets fell to 1.17% from 1.20%; equity returns fell to 10.90% from 11.09% sequentially.
Moderate pointDeposit interest expense rose 4.0% sequentially to $39.271 million, although down 7.0% year over year.
Minor pointCommercial real estate loan transfer to held-for-sale triggered a $3.2 million charge-off on a $21.2 million loan.
Minor pointLoan payoffs increased $127.0 million sequentially, partly offsetting higher production.

5 minor points

Minor pointBank-owned life insurance income decreased $0.5 million sequentially in Q3 2026.
Minor pointOverlapping subordinated notes added $0.3 million in third-quarter interest expense.
Minor pointLoan interest reversals reduced third-quarter interest income by $0.4 million.
Minor pointTangible common equity to tangible assets, a non-GAAP ratio, declined to 9.93% from 10.03% sequentially.
Minor pointTangible common equity per share, a non-GAAP measure, slipped to $27.03 from $27.04 sequentially.

News Explained

In its third-quarter results, Hanmi said several identified items accounted for about four basis points of the eight-basis-point sequential net interest margin increase, including loan-payoff fees and accelerated deferred fee income, loan-interest reversals, a special FHLB dividend, and higher subordinated-debt expense.

Key Figures

Net income: $23.7 million Diluted EPS: $0.80 per share Net interest income: $67.6 million +5 more

Net income: $23.7 million; Q3 2026; up 0.8% from Q2 2026
Diluted EPS: $0.80 per share; Q3 2026; compared with $0.79 in Q2 2026
Net interest income: $67.6 million; Q3 2026; up 5.8% from Q2 2026
Net interest margin: 3.44%; Q3 2026; up 8 basis points from Q2 2026
Deposits: $7.06 billion; Q3 2026; grew 1.4%
Loans: $6.57 billion; Q3 2026; increased 0.5%
Commercial real estate loan charge-off: $3.2 million on a $21.2 million loan; Q3 2026; loan moved to held-for-sale
Earnings returned to shareholders: 55.6%; Q3 2026; $8.3 million in dividends and $4.9 million in share repurchases

Historical Context

1 past event · Latest: Jul 30

1 event

Jul 30
Debt offering

24h Move

+0.6%

Completed $55.0 million subordinated notes to fund redemption of $110.0 million 2031 notes.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

preprovision net revenue, net interest margin, nonperforming assets, common equity tier 1 capital ratio

4 terms

preprovision net revenue financial

"10.8% growth in preprovision net revenue"

Preprovision net revenue (PPNR) is a bank metric equal to net interest income plus noninterest (fee and trading) income minus noninterest operating expenses, calculated before subtracting provisions for credit losses. It measures a lender's recurring operating revenue available to absorb loan-loss provisions and other nonoperating charges; it does not include the provision for credit losses, and it typically excludes one-time gains or losses that are not part of ongoing operations.

net interest margin financial

"Net interest margin was 3.44%, up eight basis points"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

nonperforming assets financial

"nonperforming assets to total assets unchanged from the second quarter at 0.12%"

Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.

common equity tier 1 capital ratio regulatory

"a common equity Tier 1 capital ratio of 12.30%"

A bank’s common equity tier 1 (CET1) capital ratio measures the size of its strongest loss-absorbing capital—mainly common shares and retained earnings—relative to the bank’s assets after adjusting those assets for how risky they are (riskier loans count more). Think of it as the safety cushion compared with the weight of risky business; investors use it to judge a bank’s ability to survive losses, meet rules, and sustain dividends or growth.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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10/27/2026 - 04:05 PM EDT

LOS ANGELES, Oct. 27, 2026 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the third quarter of 2026.

Net income for the third quarter of 2026 was $23.7 million, or $0.80 per diluted share, compared with $23.5 million, or $0.79 per diluted share for the second quarter of 2026. The return on average assets for the third quarter was 1.17% and the return on average equity was 10.90%, compared with a return on average assets of 1.20% and a return on average equity of 11.09% for the second quarter of 2026.

CEO Commentary
“Hanmi delivered solid financial performance in the third quarter, driven by 5.8% growth in net interest income and a 10.8% increase in preprovision net revenue,” said Bonnie Lee, President and Chief Executive Officer. “Net interest margin expanded eight basis points to 3.44%, supported by higher yields on interest-earning assets and disciplined funding costs. We also continued to strengthen our deposit base, with total deposits increasing 1.4%, driven primarily by growth in core deposits.”

“In the third quarter, we generated robust loan production of $544 million across our business, reflecting the strength of the Hanmi franchise and healthy market demand. Elevated payoffs partially offset this strong production, resulting in a modest increase in loan balances. More importantly, asset quality remains strong, underpinned by conservative underwriting, proactive portfolio management, and strong credit administration.”

“Looking ahead, our strong capital position, growing deposit base, disciplined expense management, and positive earnings momentum position us well to capitalize on opportunities across our markets and continue delivering long-term value for our shareholders,” concluded Lee.

Third Quarter 2026 Highlights:

Third quarter net income increased 0.8% from the second quarter, with 10.8% growth in preprovision net revenue¹ offset by a $3.3 million increase in credit loss expense from a single loan charge-off.
Net interest income increased 5.8% to $67.6 million, reflecting a 2.4% growth in average interest-earning assets, which was funded by a 2.8% growth in average deposits.
Net interest margin was 3.44%, up eight basis points; the average yield on loans increased 13 basis points while the average rate on interest-bearing deposits increased only one basis point.
Deposits grew 1.4% to $7.06 billion, with core deposits up 1.9% and noninterest-bearing deposits stable at 30.4% of total deposits.
Loans increased 0.5% to $6.57 billion as new loan production increased 46.2%, or $171.7 million, partially offset by an increase in payoffs of $127.0 million.

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

Hanmi recognized a $3.2 million charge-off on a $21.2 million commercial real estate loan when it was moved to held-for-sale; asset quality, however, remained strong with nonperforming assets to total assets unchanged from the second quarter at 0.12% and a low 0.14% ratio of nonperforming loans to total loans.
Hanmi returned 55.6% of third quarter earnings to shareholders, comprising $8.3 million in dividends and $4.9 million in share repurchases; capital ratios remained healthy with tangible common equity to tangible assets¹ at 9.93% and a common equity Tier 1 capital ratio of 12.30%.

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

For more information about Hanmi, please see the Q3 2026 Investor Update (and Supplemental Financial Information), which is available on the Bank’s website at www.hanmi.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov. Also, please refer to “Non-GAAP Financial Measures” herein for further details of the presentation of certain non-GAAP financial measures.

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

	As of or for the Three Months Ended															Amount Change
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Q3-26		Q3-26
	2026			2026			2026			2025			2025			vs. Q2-26		vs. Q3-25

Net income	$	23,683		$	23,505		$	22,557		$	21,239		$	22,061		$	178	$	1,622
Net income per diluted common share	$	0.80		$	0.79		$	0.75		$	0.70		$	0.73		$	0.01	$	0.07

Assets	$	8,043,788		$	8,001,473		$	7,839,227		$	7,869,185		$	7,856,731		$	42,315	$	187,057
Loans	$	6,568,701		$	6,535,312		$	6,545,466		$	6,563,367		$	6,528,259		$	33,389	$	40,442
Deposits	$	7,055,774		$	6,955,342		$	6,800,622		$	6,677,650		$	6,766,639		$	100,432	$	289,135

Return on average assets		1.17	%		1.20	%		1.18	%		1.07	%		1.12	%		-0.03		0.05
Return on average stockholders’ equity		10.90	%		11.09	%		10.86	%		10.14	%		10.69	%		-0.19		0.21

Net interest margin		3.44	%		3.36	%		3.38	%		3.28	%		3.22	%		0.08		0.22
Efficiency ratio⁽¹⁾		52.02	%		54.07	%		53.48	%		54.95	%		52.65	%		-2.05		-0.63

Tangible common equity to tangible assets⁽²⁾		9.93	%		10.03	%		10.11	%		9.99	%		9.80	%		-0.10		0.13
Tangible common equity per common share⁽²⁾	$	27.03		$	27.04		$	26.56		$	26.27		$	25.64			-0.01		1.39


⁽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 increased 5.8%, or $3.7 million, to $67.6 million for the third quarter of 2026, from $63.9 million for the second quarter. This increase was principally due to a $3.2 million increase in interest income on loans as well as a $1.5 million increase in interest income from deposits in other banks, partially offset by a $1.5 million increase in interest expense on deposits.

The increase in third quarter net interest income reflected several items. Interest income included $0.4 million of loan interest reversals, $1.2 million of prepayment fees and accelerated deferred fee income from loan payoffs, and a $0.2 million special dividend from FHLB. Interest expense included an additional $0.3 million on subordinated debentures from the overlapping of the newly issued 2036 Notes and the redemption of the 2031 Notes.

Net interest margin (taxable equivalent) increased eight basis points to 3.44% for the third quarter of 2026 from 3.36% for the second quarter. The increase reflects a higher contribution from interest income on bank deposits, partially offset by slightly higher interest expense on customer deposits and subordinated debt. The several items affecting third quarter net interest income noted above represented approximately four basis points of the increase in net interest margin.

The average yield on loans increased 13 basis points to 6.03% for the third quarter of 2026 from 5.90% for the second quarter, while the average rate on interest-bearing deposits increased one basis point to 3.18% for the third quarter from 3.17% for the second quarter. Fees from loan payoffs, partially offset by the reversal of interest income in the third quarter, represented approximately five basis points of the increase in average loan yields.

Average loans increased 0.3%, or $18.0 million, to $6.46 billion for the third quarter of 2026 from $6.44 billion for the second quarter. Average deposits increased 2.8%, or $187.9 million, to $6.94 billion for the third quarter of 2026 from $6.75 billion for the second quarter. Interest-bearing deposits led the increase in average deposits with a $116.3 million increase, primarily due to a $103.4 million increase in money market and savings. The ratio of average loans to average deposits for the third quarter was 93.1%, down from 95.5% for the second quarter. The ratio of average demand deposits to average deposits was 29.3% for the third quarter, essentially unchanged from 29.1% for the second quarter.

	For the Three Months Ended (in thousands)										Percentage Change
	Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,		Q3-26			Q3-26
Net Interest Income	2026		2026		2026		2025		2025		vs. Q2-26			vs. Q3-25

Interest and fees on loans⁽¹⁾	$	97,977	$	94,808	$	93,866	$	96,592	$	95,691		3.3	%		2.4	%
Interest on securities		6,819		6,337		5,959		6,323		6,592		7.6	%		3.4	%
Dividends on FHLB stock		451		219		831		361		357		105.9	%		26.3	%
Interest on deposits in other banks		3,409		1,958		1,496		1,837		2,586		74.1	%		31.8	%
Total interest and dividend income	$	108,656	$	103,322	$	102,152	$	105,113	$	105,226		5.2	%		3.3	%

Interest on deposits		39,271		37,774		36,738		39,978		42,244		4.0	%		-7.0	%
Interest on borrowings		—		154		676		695		324		-100.0	%		-100.0	%
Interest on subordinated debentures		1,815		1,537		1,535		1,561		1,579		18.1	%		14.9	%
Total interest expense		41,086		39,465		38,949		42,234		44,147		4.1	%		-6.9	%
Net interest income	$	67,570	$	63,857	$	63,203	$	62,879	$	61,079		5.8	%		10.6	%

⁽¹⁾Includes loans held for sale.

	For the Three Months Ended (in thousands)										Percentage Change
Average Earning Assets and Interest-bearing	Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,		Q3-26			Q3-26
Liabilities	2026		2026		2026		2025		2025		vs. Q2-26			vs. Q3-25
Loans⁽¹⁾	$	6,459,823	$	6,441,853	$	6,434,316	$	6,456,239	$	6,304,435		0.3	%		2.5	%
Securities		966,574		950,786		921,065		955,811		985,888		1.7	%		-2.0	%
FHLB stock		16,385		16,385		16,385		16,385		16,385		0.0	%		0.0	%
Interest-bearing deposits in other banks		370,575		221,361		171,953		191,731		239,993		67.4	%		54.4	%
Average interest-earning assets	$	7,813,357	$	7,630,385	$	7,543,719	$	7,620,166	$	7,546,701		2.4	%		3.5	%

Demand: interest-bearing	$	83,470	$	81,682	$	74,963	$	77,297	$	86,839		2.2	%		-3.9	%
Money market and savings		2,159,553		2,056,148		2,063,186		2,130,616		2,122,967		5.0	%		1.7	%
Time deposits		2,657,593		2,646,480		2,522,505		2,506,582		2,494,285		0.4	%		6.5	%
Average interest-bearing deposits		4,900,616		4,784,310		4,660,654		4,714,495		4,704,091		2.4	%		4.2	%
Borrowings		—		15,330		69,388		64,565		27,772		-100.0	%		-100.0	%
Subordinated debentures		132,407		130,695		130,541		130,385		130,766		1.3	%		1.3	%
Average interest-bearing liabilities	$	5,033,023	$	4,930,335	$	4,860,583	$	4,909,445	$	4,862,629		2.1	%		3.5	%

Average Noninterest Bearing Deposits
Demand deposits - noninterest bearing	$	2,034,788	$	1,963,242	$	1,937,628	$	1,969,908	$	1,960,331		3.6	%		3.8	%

⁽¹⁾Includes loans held for sale.

	For the Three Months Ended															Yield/Rate Change
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Q3-26		Q3-26
Average Yields and Rates	2026			2026			2026			2025			2025			vs. Q2-26		vs. Q3-25
Loans⁽¹⁾		6.03	%		5.90	%		5.90	%		5.94	%		6.03	%		0.13		0.00
Securities⁽²⁾		2.85	%		2.69	%		2.62	%		2.67	%		2.70	%		0.16		0.15
FHLB stock		10.92	%		5.36	%		20.56	%		8.75	%		8.65	%		5.56		2.27
Interest-bearing deposits in other banks		3.65	%		3.55	%		3.53	%		3.80	%		4.27	%		0.10		-0.62
Interest-earning assets		5.53	%		5.43	%		5.48	%		5.48	%		5.54	%		0.10		-0.01

Interest-bearing deposits		3.18	%		3.17	%		3.20	%		3.36	%		3.56	%		0.01		-0.38
Borrowings		0.00	%		4.06	%		3.94	%		4.27	%		4.63	%		-4.06		-4.63
Subordinated debentures		5.48	%		4.70	%		4.70	%		4.79	%		4.83	%		0.78		0.65
Interest-bearing liabilities		3.24	%		3.21	%		3.25	%		3.41	%		3.60	%		0.03		-0.36

Net interest margin (taxable equivalent basis)		3.44	%		3.36	%		3.38	%		3.28	%		3.22	%		0.08		0.22

Cost of deposits		2.25	%		2.25	%		2.26	%		2.37	%		2.51	%		0.00		-0.26

⁽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 third quarter of 2026 was $4.5 million, compared with $1.2 million for the second quarter; the increase resulted from higher net charge-offs. Credit loss expense for the third quarter included a provision for loan losses of $4.7 million and a negative provision of $0.2 million for off-balance sheet items. Second-quarter credit loss expense included a provision for loan losses of $1.3 million and a negative provision of $0.1 million for off-balance sheet items.

Noninterest income increased 8.2% to $9.0 million for the third quarter of 2026, from $8.3 million for the second quarter of 2026, primarily due to a $1.0 million increase in gain on sales of SBA loans. The gain was $2.3 million for the third quarter of 2026, compared with $1.3 million for the second quarter of 2026. Additionally, all other operating income increased by $0.4 million due to an increase in interchange fees. The increases in gain on sales of SBA loans and all other operating income were partially offset by a $0.5 million decrease in bank owned life insurance income.

The volume of SBA loans sold for the third quarter of 2026 increased to $34.0 million from $20.9 million for the second quarter, while trade premiums increased to 8.10% from 7.92% for the second quarter. Residential mortgage loans sold for the third quarter were $13.4 million with a premium of 1.83%, compared with $30.6 million and 2.00% for the second quarter. The gain on sales of residential mortgage loans was $0.3 million for the third quarter, compared with $0.4 million for the second quarter. Additionally, $44.5 million of U.S. Treasury securities were sold during the 2026 third quarter to fund the subordinated debt redemption at a net loss of $0.1 million.

	For the Three Months Ended (in thousands)											Percentage Change
	Sep 30,			Jun 30,		Mar 31,		Dec 31,		Sep 30,		Q3-26			Q3-26
Noninterest Income	2026			2026		2026		2025		2025		vs. Q2-26			vs. Q3-25
Service charges on deposit accounts	$	2,080		$	2,102	$	2,127	$	2,196	$	2,160		-1.0	%		-3.7	%
Trade finance and other service charges and fees		1,892			1,902		1,501		1,735		1,551		-0.5	%		22.0	%
Servicing income		958			955		870		924		924		0.3	%		3.7	%
Bank-owned life insurance income		320			799		610		315		1,259		-59.9	%		-74.6	%
All other operating income		1,352			915		844		758		973		47.8	%		38.9	%
Service charges, fees & other		6,602			6,673		5,952		5,928		6,867		-1.1	%		-3.9	%

Gain on sale of SBA loans		2,284			1,318		2,102		1,790		1,857		73.3	%		23.0	%
Gain on sale of residential mortgage loans		279			357		485		581		1,156		-21.8	%		-75.9	%
Net gain (loss) on sales of securities		(135	)		—		—		—		—		-100.0	%		-100.0	%
Total noninterest income	$	9,030		$	8,348	$	8,539	$	8,299	$	9,880		8.2	%		-8.6	%

Noninterest expense was up 2.1% to $39.8 million for the third quarter of 2026 from $39.0 million for the second quarter of 2026, primarily due to $1.1 million of accelerated amortization of deferred debt issuance costs arising from the redemption of the subordinated debt notes due 2031. Salaries and employee benefits increased $0.5 million, primarily due to a full-quarter impact of annual merit increases. These increases were partially offset by a $0.3 million decrease in professional fees. The efficiency ratio decreased to 52.02% for the third quarter, compared with 54.07% for the previous quarter.


	For the Three Months Ended (in thousands)												Percentage Change
	Sep 30,			Jun 30,		Mar 31,			Dec 31,		Sep 30,		Q3-26			Q3-26
	2026			2026		2026			2025		2025		vs. Q2-26			vs. Q3-25
Noninterest Expense
Salaries and employee benefits	$	23,334		$	22,784	$	21,956		$	22,472	$	22,163		2.4	%		5.3	%
Occupancy and equipment		4,529			4,383		4,414			4,339		4,507		3.3	%		0.5	%
Data processing		4,706			4,555		4,386			4,098		3,860		3.3	%		21.9	%
Professional fees		1,696			1,997		2,780			2,343		1,978		-15.1	%		-14.3	%
Supplies and communication		489			491		556			573		423		-0.4	%		15.6	%
Advertising and promotion		728			679		688			1,010		712		7.2	%		2.2	%
All other operating expenses		3,227			4,103		3,849			3,795		3,665		-21.4	%		-12.0	%
Subtotal		38,709			38,992		38,629			38,630		37,308		-0.7	%		3.8	%

Other real estate owned expense (income)		(22	)		6		(345	)		474		17		-466.7	%		-229.4	%
Repossessed personal property expense (income)		35			41		84			5		32		-14.6	%		9.4	%
Subordinated debt redemption		1,127			—		—			—		—		100.0	%		100.0	%
Total noninterest expense	$	39,849		$	39,039	$	38,368		$	39,109	$	37,357		2.1	%		6.7	%

The effective tax rate was 26.5% for the third quarter of 2026, unchanged from the second quarter of 2026.

Financial Position
Total assets at September 30, 2026 were $8.04 billion, a $42.3 million increase from $8.00 billion at June 30, 2026. This increase was due primarily to a $47.6 million increase in total loans and a $17.4 million increase in cash and due from banks, partially offset by a $27.1 million decrease in securities available for sale.

Total loans, excluding the allowance for credit losses and loans held for sale, were up 0.5% to $6.57 billion at September 30, 2026, from $6.54 billion at June 30, 2026.

Loans held for sale were $31.2 million at September 30, 2026, up from $17.0 million at June 30, 2026. At the end of the third quarter, loans held for sale consisted of $8.2 million representing the guaranteed portion of SBA 7(a) loans, an $18.0 million problem loan, and $5.0 million of residential mortgage loans.


	As of (in thousands)										Percentage Change
	Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,		Q3-26			Q3-26
	2026		2026		2026		2025		2025		vs. Q2-26			vs. Q3-25
Loan Portfolio
Commercial real estate loans	$	4,055,664	$	4,022,320	$	3,998,144	$	4,030,105	$	4,015,291		0.8	%		1.0	%
Residential/consumer loans		1,001,824		978,881		1,002,223		1,049,872		1,043,577		2.3	%		-4.0	%
Commercial and industrial loans		1,171,614		1,171,272		1,152,544		1,074,907		1,052,522		0.0	%		11.3	%
Equipment finance		339,599		362,839		392,555		408,483		416,869		-6.4	%		-18.5	%
Total loans held for investment		6,568,701		6,535,312		6,545,466		6,563,367		6,528,259		0.5	%		0.6	%
Loans held for sale		31,242		16,969		4,932		7,403		6,512		84.1	%		379.8	%
Total loans	$	6,599,943	$	6,552,281	$	6,550,398	$	6,570,770	$	6,534,771		0.7	%		1.0	%


	As of
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
	2026			2026			2026			2025			2025
Composition of Loan Portfolio
Commercial real estate loans		61.4	%		61.4	%		61.0	%		61.3	%		61.4	%
Residential/consumer loans		15.2	%		14.9	%		15.3	%		16.0	%		16.0	%
Commercial and industrial loans		17.8	%		17.9	%		17.6	%		16.4	%		16.1	%
Equipment finance		5.1	%		5.5	%		6.0	%		6.2	%		6.4	%
Total loans held for investment		99.5	%		99.7	%		99.9	%		99.9	%		99.9	%
Loans held for sale		0.5	%		0.3	%		0.1	%		0.1	%		0.1	%
Total loans		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

New loan production was $543.6 million for the third quarter of 2026 at an average rate of 6.61%, while payoffs were $283.5 million at an average rate of 6.55%.


	For the Three months Ended (in thousands)
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
	2026			2026			2026			2025			2025
New Loan Production
Commercial real estate loans	$	226,929		$	170,080		$	131,426		$	125,866		$	176,826
Residential/consumer loans		77,081			50,010			29,074			70,268			103,247
Commercial and industrial loans		170,301			89,227			134,717			82,079			211,454
SBA loans		41,014			37,109			40,652			44,065			44,931
Equipment finance		28,233			25,450			42,051			52,521			34,315
Subtotal		543,558			371,876			377,920			374,799			570,773


Payoffs		(283,451	)		(156,407	)		(198,936	)		(123,086	)		(142,963	)
Amortization		(112,229	)		(121,208	)		(133,396	)		(133,992	)		(60,939	)
Loan sales		(47,399	)		(54,761	)		(64,690	)		(63,642	)		(100,452	)
Net line utilization		(60,980	)		(47,762	)		4,373			(16,072	)		(39,497	)
Charge-offs & OREO		(6,110	)		(1,892	)		(3,172	)		(2,899	)		(4,620	)

Loans held for investment-beginning balance		6,535,312			6,545,466			6,563,367			6,528,259			6,305,957
Loans held for investment-ending balance	$	6,568,701		$	6,535,312		$	6,545,466		$	6,563,367		$	6,528,259

Deposits were up 1.4% to $7.06 billion at the end of the third quarter of 2026, from $6.96 billion at the end of the previous quarter. Driving the increase was a $107.5 million increase in money market and savings. Noninterest-bearing demand deposits represented 30.4% of total deposits at September 30, 2026 and the loan-to-deposit ratio was 93.1%.


	As of (in thousands)										Percentage Change
	Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,		Q3-26			Q3-26
	2026		2026		2026		2025		2025		vs. Q2-26			vs. Q3-25
Deposit Portfolio
Demand: noninterest-bearing	$	2,146,060	$	2,135,418	$	2,030,743	$	2,015,212	$	2,087,132		0.5	%		2.8	%
Demand: interest-bearing		85,521		80,783		78,341		74,799		86,834		5.9	%		-1.5	%
Money market and savings		2,192,054		2,084,572		2,116,073		2,084,218		2,094,028		5.2	%		4.7	%
Time deposits $250,000 and less		1,296,520		1,314,544		1,318,250		1,277,382		1,235,755		-1.4	%		4.9	%
Core deposits		5,720,155		5,615,317		5,543,407		5,451,611		5,503,749		1.9	%		3.9	%
Time deposits over $250,000		1,068,677		1,073,083		1,018,712		987,536		1,024,378		-0.4	%		4.3	%
State of California time deposits		180,000		180,000		150,000		150,000		150,000		0.0	%		20.0	%
Brokered time deposits		86,942		86,942		88,503		88,503		88,512		0.0	%		-1.8	%
Total deposits	$	7,055,774	$	6,955,342	$	6,800,622	$	6,677,650	$	6,766,639		1.4	%		4.3	%

	As of
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
	2026			2026			2026			2025			2025
Composition of Deposit Portfolio
Demand: noninterest-bearing		30.4	%		30.7	%		29.9	%		30.2	%		30.8	%
Demand: interest-bearing		1.2	%		1.2	%		1.1	%		1.1	%		1.3	%
Money market and savings		31.1	%		29.9	%		31.1	%		31.2	%		31.0	%
Time deposits $250,000 and less		18.4	%		18.9	%		19.4	%		19.1	%		18.3	%
Core deposits		81.1	%		80.7	%		81.5	%		81.6	%		81.4	%
Time deposits over $250,000		15.1	%		15.4	%		15.0	%		14.9	%		15.1	%
State of California time deposits		2.6	%		2.6	%		2.2	%		2.2	%		2.2	%
Brokered time deposits		1.2	%		1.3	%		1.3	%		1.3	%		1.3	%
Total deposits		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

During the third quarter of 2026, Hanmi Financial Corporation issued $55.0 million of fixed-to-floating subordinated notes due July 31, 2036 (the “2036 Notes”). The 2036 Notes carry a fixed interest rate of 6.50% for the first five years. Thereafter, the 2036 Notes will pay interest at a floating rate, reset quarterly, equal to the then-current three-month Secured Overnight Financing Rate (“SOFR”) plus 234 basis points. The 2036 Notes may be redeemed at the option of Hanmi, without penalty, on July 31, 2031 and any interest payment date thereafter, or earlier upon specified events. The proceeds from the issuance of the 2036 Notes and the proceeds from the sale of securities of $44.5 million were used to redeem the $110.0 million callable subordinated notes due 2031 (the “2031 Notes”).

Stockholders’ equity at September 30, 2026 was $808.3 million, compared with $812.7 million at the end of the previous quarter. Offsetting the increase to stockholders’ equity from third quarter net income of $23.7 million were dividends of $8.3 million, share repurchases of $4.9 million, which included $0.1 million in purchases of vested employee stock in respect of Hanmi’s equity compensation programs, and a $16.5 million increase in unrealized after-tax losses on securities available for sale. During the third quarter, under its share repurchase program, Hanmi repurchased 151,048 shares of common stock at an average price of $31.79. As of September 30, 2026, there were 1.84 million shares available under the share repurchase program. In addition to the share repurchase program, Hanmi purchased 2,416 shares of common stock surrendered by employees to satisfy their tax liabilities upon the third-quarter vesting of their equity compensation awards.

Tangible common equity per share at the end of the third quarter of 2026 was $27.03, essentially unchanged from $27.04 at the end of the second quarter. Please refer to the Non-GAAP Financial Measures section below for more information.

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


	As of															Ratio Change
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Q3-26		Q3-26
	2026			2026			2026			2025			2025			vs. Q2-26		vs. Q3-25
Regulatory Capital ratios⁽¹⁾
Hanmi Financial
Total risk-based capital		14.47	%		15.29	%		15.22	%		15.06	%		15.05	%		-0.82		-0.58
Tier 1 risk-based capital		12.62	%		12.61	%		12.52	%		12.37	%		12.33	%		0.01		0.29
Common equity tier 1 capital		12.30	%		12.28	%		12.20	%		12.05	%		12.00	%		0.02		0.30
Tier 1 leverage capital ratio		10.82	%		10.94	%		10.93	%		10.70	%		10.64	%		-0.12		0.18
Hanmi Bank
Total risk-based capital		14.33	%		14.48	%		14.45	%		14.25	%		14.28	%		-0.15		0.05
Tier 1 risk-based capital		13.28	%		13.40	%		13.37	%		13.17	%		13.20	%		-0.12		0.08
Common equity tier 1 capital		13.28	%		13.40	%		13.37	%		13.17	%		13.20	%		-0.12		0.08
Tier 1 leverage capital ratio		11.43	%		11.71	%		11.74	%		11.47	%		11.46	%		-0.28		-0.03

⁽¹⁾Preliminary ratios for September 30, 2026

Asset Quality

	As of or for the Three Months Ended (in thousands)															Amount Change
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Q3-26			Q3-26
	2026			2026			2026			2025			2025			vs. Q2-26			vs. Q3-25
Nonperforming Loans and Assets

Delinquent loans:
Loans, 30 to 89 days past due and still accruing	$	12,968		$	32,773		$	13,274		$	17,610		$	11,560		$	(19,805	)	$	1,408

Nonperforming assets:
Nonaccrual loans	$	8,942		$	9,931		$	12,420		$	18,112		$	19,369		$	(989	)	$	(10,427	)
Loans 90 days or more past due and still accruing		—			—			—			—			—			—			—
Nonperforming loans⁽¹⁾		8,942			9,931			12,420			18,112			19,369			(989	)		(10,427	)
Other real estate owned, net		1,084			—			—			1,980			1,995			1,084			(911	)
Nonperforming assets⁽²⁾	$	10,026		$	9,931		$	12,420		$	20,092		$	21,364		$	95		$	(11,338	)

Delinquent loans to total loans		0.20	%		0.50	%		0.20	%		0.27	%		0.18	%		-0.30			0.02
Nonperforming loans to total loans		0.14	%		0.15	%		0.19	%		0.28	%		0.30	%		-0.01			-0.16
Nonperforming assets to total assets		0.12	%		0.12	%		0.16	%		0.26	%		0.27	%		0.00			-0.15

⁽¹⁾Excludes an $18.0 million nonperforming loan held for sale as of September 30, 2026.
⁽²⁾Excludes repossessed personal property of $0.3 million, $0.3 million, $0.3 million, $0.6 million, and $0.4 million as of Q3-26, Q2-26, Q1-26, Q4-25, and Q3-25, respectively.

Loans 30 to 89 days past due and still accruing were $13.0 million, or 0.20% of loans, at the end of the third quarter of 2026, compared with $32.8 million, or 0.50% of loans, at the end of the second quarter. The $19.8 million decrease was primarily due to the held-for-sale designation of a $21.2 million commercial real estate loan identified as special mention in the first quarter, the resolution of which resulted in a $3.2 million partial charge-off during the third quarter.

Nonaccrual loans were $8.9 million, or 0.14% of loans, at September 30, 2026, compared with $9.9 million, or 0.15% of loans, at June 30, 2026.

Nonperforming assets were $10.0 million, or 0.12% of total assets, at September 30, 2026, compared with $9.9 million, or 0.12% of total assets, at June 30, 2026. Included in nonperforming assets at September 30, 2026 was a $1.1 million other-real-estate-owned property transferred from classified loans during the third quarter.


	As of (in thousands)															Amount Change
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Q3-26			Q3-26
	2026			2026			2026			2025			2025			vs. Q2-26			vs. Q3-25
Criticized Loans
Special mention	$	56,221		$	68,198		$	93,682		$	71,113		$	16,775		$	(11,977	)	$	39,446
Classified		78,196			45,748			22,736			25,891			28,590			32,448			49,606
Total criticized loans⁽¹⁾	$	134,417		$	113,946		$	116,418		$	97,004		$	45,365		$	20,471		$	89,052

Criticized loans to total loans		2.05	%		1.74	%		1.78	%		1.48	%		0.69	%		0.31			1.36

⁽¹⁾Includes nonaccrual loans of $8.9 million, $9.9 million, $12.4 million, $18.1 million, and $19.4 million as of Q3-26, Q2-26, Q1-26, Q4-25, and Q3-25, respectively.

Criticized loans were $134.4 million at the end of the third quarter of 2026, compared with $113.9 million at the end of the second quarter of 2026. The $20.5 million increase in criticized loans included a $32.5 million increase in classified loans, partially offset by a $12.0 million decrease in special mention loans. The increase in classified loans was primarily attributable to two multifamily loans downgraded in the third quarter that are subject to rent control restrictions in New York City, totaling $51.4 million, partially offset by the $21.2 million commercial real estate loan that was moved from classified to held-for-sale. The decrease in special mention loans was due primarily to the upgrade of an $11.2 million commercial and industrial loan.

As a percent of total loans, criticized loans were 2.05% as of September 30, 2026, compared with 1.74% as of June 30, 2026.


	As of or for the Three Months Ended (in thousands)
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
	2026			2026			2026			2025			2025
Allowance for credit losses related to loans:
Balance at beginning of period	$	70,475		$	70,468		$	69,903		$	69,781		$	66,756
Credit loss expense (recovery) on loans		4,680			1,271			3,163			1,701			2,543
Net loan (charge-offs) recoveries		(4,345	)		(1,264	)		(2,598	)		(1,579	)		482
Balance at end of period	$	70,810		$	70,475		$	70,468		$	69,903		$	69,781

Net loan charge-offs (recoveries) to average loans⁽¹⁾		0.27	%		0.08	%		0.16	%		0.10	%		-0.03	%
Allowance for credit losses to loans		1.08	%		1.08	%		1.08	%		1.07	%		1.07	%

Allowance for credit losses related to off-balance sheet items:
Balance at beginning of period	$	1,993		$	2,078		$	2,349		$	2,107		$	2,506
Credit loss expense (recovery) on off-balance sheet items		(150	)		(85	)		(271	)		242			(399	)
Balance at end of period	$	1,843		$	1,993		$	2,078		$	2,349		$	2,107

Unused commitments to extend credit	$	990,715		$	946,544		$	891,594		$	930,122		$	952,475

⁽¹⁾Annualized

The allowance for credit losses was $70.8 million, or 1.08% of loans, at September 30, 2026, compared with $70.5 million, or 1.08% of loans, at June 30, 2026. Collectively evaluated allowances increased $1.0 million, while specific allowances decreased $0.7 million.

Gross charge-offs for the third quarter of 2026 were $5.0 million, compared with $1.9 million for the preceding quarter. Charge-offs during the third quarter included $3.2 million on the previously mentioned problem loan held for sale at September 30, 2026 and $1.4 million for equipment financing agreements. Recoveries of previously charged off loans were $0.7 million, substantially all of which were equipment financing agreements. As a result, there were $4.3 million of net charge-offs for the third quarter of 2026, or 0.27% of loans (annualized), compared with $1.3 million of net charge-offs, or 0.08% of loans (annualized), for the second quarter of 2026.

Corporate Developments
On July 23, 2026, Hanmi’s Board of Directors declared a cash dividend on its common stock of $0.28 per share for the 2026 third quarter. Hanmi paid the dividend on August 19, 2026, to stockholders of record as of the close of business on August 3, 2026.

Earnings Conference Call
Hanmi Bank will host its third quarter 2026 earnings conference call today, October 27, 2026, at 2:00 p.m. PST (5:00 p.m. EST) to discuss these results. This call will also be webcast. To access the call, please dial 1-877-407-9039 before 2:00 p.m. PST, using access code Hanmi Bank. To listen to the call online, either live or archived, please visit Hanmi’s Investor Relations website at https://investors.hanmi.com/ where it will also be available for replay approximately one hour following the call.

About Hanmi Financial Corporation
Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 32 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.
Forward-Looking Statements
This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

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

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

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

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

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

Hanmi Financial Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)

	September 30,			June 30,			Percentage			September 30,			Percentage
	2026			2026			Change			2025			Change
Assets
Cash and due from banks	$	348,576		$	331,206			5.2	%	$	215,654			61.6	%
Securities available for sale, at fair value		869,499			896,610			-3.0	%		904,721			-3.9	%
Loans held for sale, at the lower of cost or fair value		31,242			16,969			84.1	%		6,512			379.8	%
Loans, net of allowance for credit losses		6,497,891			6,464,837			0.5	%		6,458,478			0.6	%
Accrued interest receivable		25,404			24,613			3.2	%		23,986			5.9	%
Premises and equipment, net		20,380			20,251			0.6	%		20,340			0.2	%
Customers’ liability on acceptances		467			116			302.6	%		342			36.5	%
Servicing assets		6,693			6,419			4.3	%		6,484			3.2	%
Goodwill and other intangible assets, net		11,031			11,031			0.0	%		11,031			0.0	%
Federal Home Loan Bank (“FHLB”) stock, at cost		16,385			16,385			0.0	%		16,385			0.0	%
Bank-owned life insurance		56,359			56,048			0.6	%		56,382			0.0	%
Prepaid expenses and other assets		159,861			156,988			1.8	%		136,416			17.2	%
Total assets	$	8,043,788		$	8,001,473			0.5	%	$	7,856,731			2.4	%

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	2,146,060		$	2,135,418			0.5	%	$	2,087,132			2.8	%
Interest-bearing		4,909,714			4,819,924			1.9	%		4,679,507			4.9	%
Total deposits		7,055,774			6,955,342			1.4	%		6,766,639			4.3	%
Accrued interest payable		28,131			27,530			2.2	%		34,219			-17.8	%
Bank's liability on acceptances		467			116			302.6	%		342			36.5	%
Borrowings		—			—			0.0	%		62,500			-100.0	%
Subordinated debentures		76,147			130,773			-41.8	%		130,309			-41.6	%
Accrued expenses and other liabilities		74,960			75,032			-0.1	%		83,172			-9.9	%
Total liabilities		7,235,479			7,188,793			0.6	%		7,077,181			2.2	%

Stockholders’ equity:
Common stock		34			34			0.0	%		34			0.0	%
Additional paid-in capital		597,236			596,303			0.2	%		593,768			0.6	%
Accumulated other comprehensive (loss)		(62,372	)		(46,552	)		-34.0	%		(47,959	)		30.1	%
Retained earnings		438,893			423,499			3.6	%		381,183			15.1	%
Less treasury stock		(165,482	)		(160,604	)		-3.0	%		(147,476	)		12.2	%
Total stockholders’ equity		808,309			812,680			-0.5	%		779,550			3.7	%
Total liabilities and stockholders’ equity	$	8,043,788		$	8,001,473			0.5	%	$	7,856,731			2.4	%

Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except share and per share data)

	Three Months Ended
	September 30,		June 30,		Percentage			September 30,		Percentage
	2026		2026		Change			2025		Change
Interest and dividend income:
Interest and fees on loans	$	97,977	$	94,808		3.3	%	$	95,691		2.4	%
Interest on securities		6,819		6,337		7.6	%		6,592		3.4	%
Dividends on FHLB stock		451		219		105.9	%		357		26.3	%
Interest on deposits in other banks		3,409		1,958		74.1	%		2,586		31.8	%
Total interest and dividend income		108,656		103,322		5.2	%		105,226		3.3	%
Interest expense:
Interest on deposits		39,271		37,774		4.0	%		42,244		-7.0	%
Interest on borrowings		—		154		-100.0	%		324		-100.0	%
Interest on subordinated debentures		1,815		1,537		18.1	%		1,579		14.9	%
Total interest expense		41,086		39,465		4.1	%		44,147		-6.9	%
Net interest income before credit loss expense		67,570		63,857		5.8	%		61,079		10.6	%
Credit loss expense		4,530		1,186		282.0	%		2,145		111.2	%
Net interest income after credit loss expense		63,040		62,671		0.6	%		58,934		7.0	%
Noninterest income:
Service charges on deposit accounts		2,080		2,102		-1.0	%		2,160		-3.7	%
Trade finance and other service charges and fees		1,892		1,902		-0.5	%		1,551		22.0	%
Gain on sale of Small Business Administration (“SBA”) loans		2,284		1,318		73.3	%		1,857		23.0	%
Gain on sale of residential mortgage loans		279		357		-21.8	%		1,156		-75.9	%
Other operating income		2,495		2,669		-6.5	%		3,156		-20.9	%
Total noninterest income		9,030		8,348		8.2	%		9,880		-8.6	%
Noninterest expense:
Salaries and employee benefits		23,334		22,784		2.4	%		22,163		5.3	%
Occupancy and equipment		4,529		4,383		3.3	%		4,507		0.5	%
Data processing		4,706		4,555		3.3	%		3,860		21.9	%
Professional fees		1,696		1,997		-15.1	%		1,978		-14.3	%
Supplies and communications		489		491		-0.4	%		423		15.6	%
Advertising and promotion		728		679		7.2	%		712		2.2	%
Other operating expenses		4,367		4,150		5.2	%		3,714		17.6	%
Total noninterest expense		39,849		39,039		2.1	%		37,357		6.7	%
Income before tax		32,221		31,980		0.8	%		31,457		2.4	%
Income tax expense		8,538		8,475		0.7	%		9,396		-9.1	%
Net income	$	23,683	$	23,505		0.8	%	$	22,061		7.4	%

Basic earnings per share:	$	0.80	$	0.79				$	0.73
Diluted earnings per share:	$	0.80	$	0.79				$	0.73

Weighted-average shares outstanding:
Basic		29,388,692		29,514,712					29,830,475
Diluted		29,569,858		29,689,113					29,880,865
Common shares outstanding		29,496,736		29,650,306					29,975,371

Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except share and per share data)

	Nine Months Ended
	September 30,		September 30,		Percentage
	2026		2025		Change
Interest and dividend income:
Interest and fees on loans receivable	$	286,651	$	279,168		2.7	%
Interest on securities		19,115		19,022		0.5	%
Dividends on FHLB stock		1,501		1,071		40.1	%
Interest on deposits in other banks		6,863		6,554		4.7	%
Total interest and dividend income		314,130		305,815		2.7	%
Interest expense:
Interest on deposits		113,783		124,727		-8.8	%
Interest on borrowings		830		3,032		-72.6	%
Interest on subordinated debentures		4,887		4,746		3.0	%
Total interest expense		119,500		132,505		-9.8	%
Net interest income before credit loss expense		194,630		173,310		12.3	%
Credit loss expense		8,608		12,496		-31.1	%
Net interest income after credit loss expense		186,022		160,814		15.7	%
Noninterest income:
Service charges on deposit accounts		6,309		6,546		-3.6	%
Trade finance and other service charges and fees		5,295		4,409		20.1	%
Gain on sale of Small Business Administration (“SBA”) loans		5,705		6,018		-5.2	%
Gain on sale of residential mortgage loans		1,121		1,331		-15.8	%
Other operating income		7,487		7,372		1.6	%
Total noninterest income		25,917		25,676		0.9	%
Noninterest expense:
Salaries and employee benefits		68,074		65,204		4.4	%
Occupancy and equipment		13,326		13,301		0.2	%
Data processing		13,647		11,374		20.0	%
Professional fees		6,473		5,171		25.2	%
Supplies and communications		1,536		1,455		5.6	%
Advertising and promotion		2,096		2,094		0.1	%
Other operating expenses		12,104		10,090		20.0	%
Total noninterest expense		117,256		108,689		7.9	%
Income before tax		94,683		77,801		21.7	%
Income tax expense		24,938		22,951		8.7	%
Net income	$	69,745	$	54,850		27.2	%

Basic earnings per share:	$	2.35	$	1.82
Diluted earnings per share:	$	2.33	$	1.82

Weighted-average shares outstanding:
Basic		29,509,964		29,905,265
Diluted		29,690,052		29,955,366
Common shares outstanding		29,496,736		29,975,371

Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
(Dollars in thousands)

	Three Months Ended
	September 30, 2026								June 30, 2026								September 30, 2025
				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:
Commercial real estate ⁽¹⁾	$	4,017,696		$	59,167		5.84	%	$	3,986,661		$	57,244		5.76	%	$	3,934,477		$	56,908		5.74	%
Residential mortgage ⁽¹⁾		991,153			13,281		5.36	%		1,001,859			13,511		5.39	%		1,020,889			13,812		5.37	%
Commercial and industrial ⁽¹⁾		1,090,135			19,276		7.02	%		1,065,744			17,467		6.57	%		904,019			17,593		7.72	%
Consumer		5,670			98		6.90	%		5,711			92		6.44	%		8,323			156		7.43	%
Equipment finance		355,169			6,155		6.93	%		381,878			6,494		6.80	%		436,727			7,222		6.61	%
Total loans ⁽¹⁾		6,459,823			97,977		6.03	%		6,441,853			94,808		5.90	%		6,304,435			95,691		6.03	%
Securities ⁽²⁾		966,574			6,819		2.85	%		950,786			6,337		2.69	%		985,888			6,592		2.70	%
FHLB stock		16,385			451		10.92	%		16,385			219		5.36	%		16,385			358		8.65	%
Interest-bearing deposits in other banks		370,575			3,409		3.65	%		221,361			1,958		3.55	%		239,993			2,585		4.27	%
Total interest-earning assets		7,813,357			108,656		5.53	%		7,630,385			103,322		5.43	%		7,546,701			105,226		5.54	%

Noninterest-earning assets:
Cash and due from banks		47,625								48,769								53,144
Allowance for credit losses		(70,267	)							(70,249	)							(67,851	)
Other assets		265,516								255,426								252,039

Total assets	$	8,056,231							$	7,864,331							$	7,784,033

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	83,470		$	35		0.16	%	$	81,682		$	33		0.16	%	$	86,839		$	38		0.17	%
Money market and savings		2,159,553			14,680		2.70	%		2,056,148			13,540		2.64	%		2,122,967			17,238		3.22	%
Time deposits		2,657,593			24,556		3.67	%		2,646,480			24,201		3.67	%		2,494,285			24,968		3.97	%
Total interest-bearing deposits		4,900,616			39,271		3.18	%		4,784,310			37,774		3.17	%		4,704,091			42,244		3.56	%
Borrowings		—			—		0.00	%		15,330			154		4.06	%		27,772			324		4.63	%
Subordinated debentures		132,407			1,815		5.48	%		130,695			1,537		4.70	%		130,766			1,579		4.83	%
Total interest-bearing liabilities		5,033,023			41,086		3.24	%		4,930,335			39,465		3.21	%		4,862,629			44,147		3.60	%

Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		2,034,788								1,963,242								1,960,331
Other liabilities		126,211								120,896								142,592
Stockholders’ equity		862,209								849,858								818,481

Total liabilities and stockholders’ equity	$	8,056,231							$	7,864,331							$	7,784,033

Net interest income				$	67,570							$	63,857							$	61,079

Cost of deposits							2.25	%							2.25	%							2.51	%
Net interest spread (taxable equivalent basis)							2.29	%							2.22	%							1.94	%
Net interest margin (taxable equivalent basis)							3.44	%							3.36	%							3.22	%



⁽¹⁾ Includes average loans held for sale
⁽²⁾ Yields 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)

	Nine Months Ended
	September 30, 2026								September 30, 2025
				Interest		Average						Interest		Average
	Average			Income /		Yield /			Average			Income /		Yield /
	Balance			Expense		Rate			Balance			Expense		Rate
Assets
Interest-earning assets:
Loans:
Commercial real estate⁽¹⁾	$	3,989,706		$	172,248		5.77	%	$	3,950,295		$	168,156		5.69	%
Residential mortgage⁽¹⁾		1,009,483			40,827		5.39	%		990,848			39,816		5.37	%
Commercial and industrial⁽¹⁾		1,060,241			53,712		6.77	%		840,404			48,051		7.64	%
Consumer		5,560			274		6.58	%		7,673			414		7.21	%
Equipment finance		380,434			19,590		6.87	%		461,770			22,731		6.56	%
Loans receivable⁽¹⁾		6,445,424			286,651		5.94	%		6,250,990			279,168		5.97	%
Securities⁽²⁾		946,309			19,115		2.72	%		993,730			19,022		2.58	%
FHLB stock		16,385			1,501		12.25	%		16,385			1,071		8.74	%
Interest-bearing deposits in other banks		255,357			6,863		3.59	%		205,663			6,554		4.26	%
Total interest-earning assets		7,663,475			314,130		5.48	%		7,466,768			305,815		5.48	%

Noninterest-earning assets:
Cash and due from banks		49,669								53,596
Allowance for credit losses		(69,937	)							(69,233	)
Other assets		256,302								250,485

Total assets	$	7,899,509							$	7,701,616

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	80,070		$	96		0.16	%	$	82,533		$	95		0.15	%
Money market and savings		2,093,315			41,302		2.64	%		2,090,118			51,016		3.26	%
Time deposits		2,609,354			72,385		3.71	%		2,425,309			73,616		4.06	%
Total interest-bearing deposits		4,782,739			113,783		3.18	%		4,597,960			124,727		3.63	%
Borrowings		27,985			830		3.96	%		88,561			3,032		4.58	%
Subordinated debentures		131,222			4,887		4.97	%		130,788			4,746		4.84	%
Total interest-bearing liabilities		4,941,946			119,500		3.23	%		4,817,309			132,505		3.68	%

Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,978,909								1,930,659
Other liabilities		127,056								142,425
Stockholders’ equity		851,598								811,223

Total liabilities and stockholders’ equity	$	7,899,509							$	7,701,616

Net interest income				$	194,630							$	173,310

Cost of deposits							2.25	%							2.55	%
Net interest spread (taxable equivalent basis)							2.25	%							1.80	%
Net interest margin (taxable equivalent basis)							3.40	%							3.11	%


⁽¹⁾Includes average loans held for sale
⁽²⁾Yields 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)

	September 30,			June 30,			March 31,			December 31,			September 30,
Hanmi Financial Corporation and Subsidiaries	2026			2026			2026			2025			2025
Assets	$	8,043,788		$	8,001,473		$	7,839,227		$	7,869,185		$	7,856,731
Less goodwill and other intangible assets		(11,031	)		(11,031	)		(11,031	)		(11,031	)		(11,031	)
Tangible assets	$	8,032,757		$	7,990,442		$	7,828,196		$	7,858,154		$	7,845,700

Stockholders’ equity⁽¹⁾	$	808,309		$	812,680		$	802,819		$	796,386		$	779,550
Less goodwill and other intangible assets		(11,031	)		(11,031	)		(11,031	)		(11,031	)		(11,031	)
Tangible stockholders’ equity⁽¹⁾	$	797,278		$	801,649		$	791,788		$	785,355		$	768,519

Stockholders’ equity to assets		10.05	%		10.16	%		10.24	%		10.12	%		9.92	%
Tangible common equity to tangible assets⁽¹⁾		9.93	%		10.03	%		10.11	%		9.99	%		9.80	%

Common shares outstanding		29,496,736			29,650,306			29,806,694			29,894,757			29,975,371
Tangible common equity per common share	$	27.03		$	27.04		$	26.56		$	26.27		$	25.64


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

Preprovision Net Revenues

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

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

Preprovision Net Revenues (Unaudited)
(In thousands, except percentages)

											Percentage Change
Hanmi Financial Corporation and	Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,		Q3-26			Q3-26
Subsidiaries	2026		2026		2026		2025		2025		vs. Q2-26			vs. Q3-25
Net income	$	23,683	$	23,505	$	22,557	$	21,239	$	22,061
Add back:
Credit loss expense		4,530		1,186		2,892		1,943		2,145
Income tax expense		8,538		8,475		7,925		8,887		9,396
Preprovision net revenue	$	36,751	$	33,166	$	33,374	$	32,069	$	33,602		10.8	%		9.4	%

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Hanmi Financial's third-quarter 2026 earnings?

Hanmi earned $23.7 million, or $0.80 per diluted share, in the third quarter of 2026. Second-quarter earnings were $23.5 million, or $0.79 per diluted share.

Why did Hanmi Financial's net interest margin increase in Q3 2026?

Higher interest income from bank deposits contributed to Hanmi's margin increase, partly offset by higher interest expense on customer deposits and subordinated debt. Specified income and expense items accounted for approximately four basis points of the eight-basis-point sequential increase.

How much did Hanmi Financial pay in dividends in Q3 2026?

Hanmi paid $8.3 million in dividends during the third quarter of 2026. Together with $4.9 million in share repurchases, shareholder returns represented 55.6% of quarterly earnings.

What were Hanmi Financial's nonperforming loan and capital ratios in Q3 2026?

Hanmi's nonperforming loans were 0.14% of total loans, and its common equity Tier 1 capital ratio was 12.30%. Nonperforming assets were unchanged sequentially at 0.12% of total assets.

Hanmi Reports 2026 Third Quarter Results