HAFC

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by solid earnings growth and disciplined execution, resulting in a return on average assets of 1.2% and return on average equity of 11.1%. The 'Corporate Korea' initiative remains a primary differentiator, with deposits from these clients reaching an all-time high of $1.2 billion, or 17% of total deposits. Strategic portfolio diversification is gaining traction as C&I loans grew 28% year-over-year, now representing 18% of the total loan portfolio compared to 14% a year ago. Management attributed the 2 basis point decline in net interest margin primarily to a dividend policy change at FHLB San Francisco, noting underlying margin was otherwise stable. Operating efficiency remains a core strength, with a 54% efficiency ratio reflecting a focus on productivity and disciplined expense management despite selective talent investments. Asset quality metrics improved across the board, with nonperforming loans declining to 0.15% of total loans, supported by a conservative risk culture and proactive portfolio management. Management expects low to mid-single-digit loan growth for the full year 2026, with C&I and Commercial Real Estate identified as the primary drivers for the second half. Net interest margin is projected to remain stable through the balance of the year, assuming no changes in Federal Reserve policy and consistent loan origination yields. SBA loan production is expected to return to a normal run rate of approximately $45 million per quarter in the second half of the year following timing-related delays in Q2. The funding strategy prioritizes growing core deposits and increasing the mix of noninterest-bearing accounts, particularly through deepening relationships with USKC corporate customers. Noninterest expenses are expected to maintain a similar run rate for the remainder of the year, as major labor and benefit cost adjustments have already been realized. A $21.2 million CRE credit was downgraded to classified status after becoming delinquent following the loss of an anchor tenant; however, management believes the loan is well-collateralized based on new appraisals. The FHLB San Francisco dividend policy change resulted in a $612,000 reduction in interest income, impacting the net interest margin by approximately 3 basis points. Hanmi returned 58% of earnings to shareholders during the quarter through $13.6 million in dividends and share repurchases, with 1.99 million shares remaining under current authorization. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects C&I growth to continue as the primary driver, supplemented by activity in the Commercial Real Estate segment. Year-to-date originations are up 11% compared to the first half of 2025, providing confidence in the year-end growth targets. Borrowers remain cautious regarding line utilization and new investments due to economic uncertainty, rising energy costs, and geopolitical conflicts. Despite lower utilization, there is a notable influx of deposits from these clients in preparation for future U.S. investments. Management characterized the growth as sustainable, driven by new account acquisitions outpacing closures rather than one-off events. The commercial noninterest-bearing pipeline remains strong, particularly within the USKC customer base. July interest-bearing deposit costs have remained spot on with the Q2 average, suggesting stability in the near term. Management sees equal potential for minor upward or downward bias (1-3 basis points) depending on competitive pressures in money market rates versus CD maturity relief.

This article first appeared on GuruFocus. Net Income: Increased to $23.5 million or $0.79 per diluted share, up from $22.6 million or $0.75 per diluted share last quarter. Net Interest Income: Increased 1% sequentially to $63.9 million. Net Interest Margin: Declined by 2 basis points to 3.36%. Return on Average Assets: Increased to 1.2%. Return on Average Equity: Improved to 11.1%. Deposits: Grew 2.3% in the quarter, with non-interest-bearing deposits increasing to 31% of total deposits. New Loan Originations: Totaled $372 million, with year-to-date originations up 11% compared to the first half of 2025. Efficiency Ratio: Maintained at 54%. Non-Performing Loans: Improved to 0.15% of total loans. Non-Performing Assets: Improved to 0.12% of total assets. Corporate Korea Deposits: Increased 6.2% to $1.2 billion, representing 17% of total deposits. Capital Returns: $13.6 million returned to shareholders through dividends and share repurchases. Tangible Common Equity Per Share: Increased 1.8% to $27.04. Tangible Common Equity Ratio: 10.03%. Warning! GuruFocus has detected 7 Warning Sign with HAFC. Is HAFC fairly valued? Test your thesis with our free DCF calculator. Release Date: July 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Hanmi Financial Corp (NASDAQ:HAFC) reported strong financial performance with net income increasing to $23.5 million or $0.79 per diluted share, up from $22.6 million or $0.75 per diluted share in the previous quarter. The company achieved a 2.3% growth in deposits, driven by a 5.2% increase in non-interest-bearing accounts, highlighting the strength of its funding base. Hanmi Financial Corp (NASDAQ:HAFC) maintained excellent credit quality, with non-performing loans improving to 0.15% of total loans and non-performing assets improving to 0.12% of total assets. The Corporate Korea initiative continues to generate meaningful results, with deposits from Corporate Korea clients increasing by 6.2% during the quarter to $1.2 billion. The company returned 58% of earnings to shareholders through dividends and share repurchases, demonstrating a commitment to shareholder value. Net interest margin declined modestly by 2 basis points to 3.36%, impacted by changes in the San Francisco Federal Home Loan Bank dividend policy. Loan production decreased by $6 million or 1.6% from the prior quarter, primarily due to a decline in C&I, SBA, and equipment finance. There was an increase in delinquencies due to a $21.2 million CRE credit that was downgraded, although the bank remains well secured on this loan. Non-interest expense increased by 1.7% to $39 million, driven by higher salaries and benefits and the absence of a gain on the sale of OREO recognized in the first quarter. The company faces ongoing economic uncertainty, including rising energy costs and geopolitical tensions, which could impact future loan demand and growth. Q: Can you provide insights on the primary drivers of loan growth for the remainder of the year? A: Bonita Lee, President and CEO, stated that C&I (Commercial and Industrial) growth, along with contributions from the Commercial Real Estate segment, will continue to be the primary drivers of loan growth in the second half of the year. Q: What are the expectations for the Corporate Korea initiative in terms of loan demand recovery? A: Anthony Kim, Chief Banking Officer, mentioned that due to ongoing economic uncertainties, Corporate Korea clients remain cautious about utilizing lines and investing. However, there is an influx of deposits in preparation for potential investments in the US. Q: Could you update us on the status of the retail CRE loan that moved to 30 to 89 days past due? A: Bonita Lee explained that the loan was downgraded due to the loss of a major tenant, but recent appraisals indicate the property is well collateralized, and they do not anticipate any credit loss. Q: How is the deposit pipeline shaping up, particularly for non-interest-bearing deposits? A: Bonita Lee noted strong growth in non-interest-bearing deposits, driven by commercial accounts and the USKC corporate customer base. The trend is expected to continue with new accounts outpacing closures. Q: What is the outlook for SBA loan production and gain on sale in the back half of the year? A: Bonita Lee expects SBA production to return to a normal run rate of around $45 million per quarter, with premium income aligning with historical trends. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

LOS ANGELES, July 21, 2026 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the second quarter of 2026. Net income for the second quarter of 2026 was $23.5 million, or $0.79 per diluted share, compared with $22.6 million, or $0.75 per diluted share for the first quarter of 2026. The return on average assets for the second quarter was 1.20% and the return on average equity was 11.09%, compared with a return on average assets of 1.18% and a return on average equity of 10.86% for the first quarter of 2026. CEO Commentary “Hanmi delivered another quarter of strong earnings growth, reflecting consistent execution across our business,” said Bonnie Lee, President and Chief Executive Officer. “Our capital position remained healthy while returning 58% of earnings to shareholders in the form of dividends and share repurchases. Return on average equity increased to 11.1%, supported by robust deposit growth, solid loan production, lower funding costs, and prudent expense management. Deposits grew 2.3% sequentially, with noninterest-bearing deposits increasing 5.2%, underscoring the strength of our relationship-based banking model and the value of our franchise.” “Consistent with our strategy, we maintained a steady pace of loan production while continuing to diversify our loan portfolio. Importantly, credit quality remained excellent, reflecting our prudent underwriting standards and disciplined approach to risk management.” “Based on our strong first-half performance, robust loan and deposit pipelines, and the momentum we are seeing across the business, we remain optimistic about our outlook and are confident in our ability to deliver continued earnings growth and strong financial performance through the second half of 2026,” concluded Lee. Second Quarter 2026 Highlights: Net income was $23.5 million, or $0.79 per diluted share, up 4.2% from the first quarter, driven by continued growth in net interest income and lower credit loss expense. Return on average assets and return on average equity during the second quarter were 1.20% and 11.09%, respectively. Deposits increased 2.3% to $7.0 billion from the prior quarter and noninterest-bearing demand deposits increased to 31% of total deposits, from 30% for the prior quarter. Net interest income increased 1.0% from the prior quarter, driven by the growth in commercial real estate and commercial and industrial lending. The increase was further supported by an improved funding mix, including lower-cost interest-bearing deposits and reduced borrowings. Net interest margin decreased two basis points to 3.36%, due primarily to normalization of FHLB dividend income, which elevated interest income in the prior quarter. Asset quality remained strong as nonperforming assets to total assets was 0.12%, an improvement of four basis points from the prior quarter, and nonperforming loans to total loans was 0.15%, also an improvement of four basis points from the prior quarter. Hanmi returned 58% of second-quarter net earnings to shareholders in the form of $8.3 million in dividends and $5.2 million in share repurchases; capital ratios remained healthy with tangible common equity to tangible assets at 10.03%.(1) (1) Refer to “Non-GAAP Financial Measures” for further details. For more information about Hanmi, please see the Q2 2026 Investor Update (and Supplemental Financial Information), which is available on the Bank’s website at www.hanmi.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov. Also, please refer to “Non-GAAP Financial Measures” herein for further details of the presentation of certain non-GAAP financial measures.Quarterly Highlights (Dollars in thousands, except per share data) Results of Operations Net interest income increased $0.7 million, or 1.0%, to $63.9 million for the second quarter of 2026, from $63.2 million for the first quarter. This increase was principally due to higher interest income on loans, which increased by $0.9 million from the first quarter, as well as a $0.8 million increase in interest income from securities and interest-bearing deposits in other institutions. Interest expense on deposits, however, increased by $1.0 million from the first quarter. Net interest margin (taxable equivalent) declined by two basis points to 3.36%, from 3.38% for the first quarter of 2026. This decline was driven by lower contributions from loans and FHLB stock, with unfavorable impacts of five basis points and three basis points, respectively, compared to the first quarter. Partially offsetting the decline were higher contributions from borrowings and interest-bearing deposits, with favorable impacts of three basis points each. While the average yield on loans for the second quarter remained unchanged at 5.90%, the average balance of loans for the second quarter was $6.44 billion, up 0.1% from the previous quarter. The cost of interest-bearing deposits for the second quarter was 3.17%, down three basis points from the first quarter, and the average balance of interest-bearing deposits was $4.78 billion, up 2.7% from the previous quarter. The ratio of average loans to average deposits for the second quarter was 95.5%, compared with 97.5% for the previous quarter. Credit loss expense for the second quarter of 2026 was $1.2 million, compared with $2.9 million for the first quarter. The $1.7 million decline was due to lower net charge-offs during the second quarter. Credit loss expense during the second quarter included a $1.3 million provision for loan losses and a negative provision of $0.1 million for off-balance sheet items. First-quarter credit loss expense included a $3.2 million provision for loan losses and a negative provision of $0.3 million for off-balance sheet items. Noninterest income was $8.3 million, down 2.2% from $8.5 million for the first quarter of 2026, primarily due to a $0.8 million decrease in gain on sales of SBA loans. The gain was $1.3 million for the second quarter of 2026, compared with $2.1 million for the first quarter of 2026. The decrease in gain on sales of SBA loans was partially offset by a $0.4 million increase in trade finance and other service charges and fees and modest increases in the other noninterest income categories. The volume of SBA loans sold for the second quarter of 2026 decreased to $20.9 million from $32.5 million for the first quarter, while trade premiums increased to 7.92% from 7.88% for the first quarter. Residential mortgage loans sold for the second quarter were $30.6 million with a premium of 2.00%, compared with $31.7 million and 2.50% for the first quarter. The gain on sales of residential mortgage loans was $0.4 million for the second quarter, compared with $0.5 million for the first quarter. Noninterest expense was $39.0 million for the second quarter of 2026, up 1.7% from $38.4 million for the first quarter, primarily due to a $0.8 million increase in salaries and employee benefits and a $0.4 million increase in other real estate owned (OREO) expense. Salaries and employee benefits increased because of the additional business day in the second quarter and annual merit increases, while the increase in OREO expense reflected the absence of the first-quarter gain on sale of OREO. These increases were partially offset by a $0.8 million decrease in professional fees that were attendant to the first-quarter resolution of several administrative items. The efficiency ratio increased to 54.07% for the second quarter, compared with 53.48% for the previous quarter. The effective tax rate was 26.5% for the second quarter of 2026, compared with 26.0% for the first quarter of 2026. Financial PositionTotal assets at June 30, 2026 increased 2.1%, or $162.2 million, to $8.00 billion from $7.84 billion at March 31, 2026. This increase was due primarily to a $77.2 million increase in cash and due from banks, a $60.9 million increase in securities available for sale, and a $21.3 million increase in prepaid expenses and other assets. The increase in prepaid expenses and other assets was primarily due to estimated income tax payments made during the second quarter. Total loans, excluding the allowance for credit losses and loans held for sale, were $6.54 billion at June 30, 2026, down 0.2% from $6.55 billion at March 31, 2026. Loans held for sale were $17.0 million at June 30, 2026, up from $4.9 million at March 31, 2026. At the end of the second quarter, loans held for sale consisted of $12.0 million representing the guaranteed portion of SBA 7(a) loans and $5.0 million of residential mortgage loans. New loan production was $371.9 million for the second quarter of 2026 at an average rate of 6.59%, while payoffs were $156.4 million at an average rate of 6.39%. Deposits were $6.96 billion at the end of the second quarter of 2026, up $154.7 million, or 2.3%, from $6.80 billion at the end of the prior quarter. Driving the increase was a $104.7 million increase in noninterest-bearing deposits and a $54.4 million increase in time deposits over $250,000. Noninterest-bearing demand deposits represented 30.7% of total deposits at June 30, 2026 and the loan-to-deposit ratio was 94.0%. Stockholders’ equity at June 30, 2026 was $812.7 million, up $9.9 million, or 1.2%, from $802.8 million at March 31, 2026. Offsetting the increase to stockholders’ equity from second quarter net income of $23.5 million were dividends of $8.3 million, share repurchases of $5.2 million, which included $0.4 million in purchases of vested employee stock in respect of Hanmi's equity compensation programs, and a $1.0 million increase in unrealized after-tax losses on securities available for sale. During the second quarter, under its share repurchase program, Hanmi repurchased 160,000 shares of common stock at an average price of $30.24. As of June 30, 2026, there were 1.99 million shares available under the share repurchase program. In addition to the share repurchase program, Hanmi purchased 15,134 shares of common stock surrendered by employees to satisfy their tax liabilities upon the second-quarter vesting of their equity compensation awards. Tangible common equity per share at the end of the second quarter of 2026 was $27.04, up 1.8% from $26.56 at the end of the first quarter. Please refer to the Non-GAAP Financial Measures section below for more information. Hanmi and the Bank exceeded minimum regulatory capital requirements, and the Bank continued to exceed the minimum for the “well capitalized” category. Asset Quality Loans 30 to 89 days past due and still accruing were $32.8 million, or 0.50% of loans, at the end of the second quarter of 2026, compared with $13.3 million, or 0.20% of loans, at the end of the first quarter of 2026. The $19.5 million increase was primarily due to a $21.2 million commercial real estate loan, identified as special mention in the first quarter, that became delinquent during the second quarter. Nonaccrual loans were $9.9 million, or 0.15% of loans, at June 30, 2026, compared with $12.4 million, or 0.19% of loans, at March 31, 2026. The decrease for the second quarter reflects the sale of a $3.2 million commercial real estate loan on nonaccrual status and $1.6 million of equipment finance agreement charge-offs, partially offset by $2.9 million of new nonaccrual loans and equipment finance agreements. Nonperforming assets were $9.9 million, or 0.12% of total assets, at June 30, 2026, compared with $12.4 million, or 0.16% of total assets, at March 31, 2026. The decline reflects the changes described in the above paragraph. Criticized loans were $113.9 million for the second quarter of 2026, compared with $116.4 million for the first quarter of 2026. This $2.5 million decrease in criticized loans included a $25.5 million decrease for special mention loans, partially offset by a $23.0 million increase for classified loans. Both the special mention decrease and classified increase were primarily due to the downgrade of three special mention loans totaling $23.6 million to the classified category, which included the previously mentioned $21.2 million commercial real estate loan. There were no transfers of criticized loans into other-real-estate-owned during the second quarter of 2026. As a percent of total loans, criticized loans were 1.74% as of June 30, 2026, compared with 1.78% as of March 31, 2026. The allowance for credit losses was $70.5 million, or 1.08% of loans, at both June 30 and March 31, 2026. Collectively evaluated allowances increased $0.6 million, while specific allowances decreased $0.6 million. Gross charge-offs for the second quarter of 2026 were $1.9 million, compared with $3.2 million for the preceding quarter. Charge-offs during the second quarter included $1.6 million of equipment financing agreements. Recoveries of previously charged off loans were $0.6 million, substantially all of which were equipment financing agreements. As a result, there were $1.3 million of net charge-offs for the second quarter of 2026, or 0.08% of loans (annualized), compared with $2.6 million, or 0.16% of loans, for the first quarter of 2026. Corporate DevelopmentsOn April 23, 2026, Hanmi’s Board of Directors declared a cash dividend on its common stock of $0.28 per share for the 2026 second quarter. Hanmi paid the dividend on May 20, 2026, to stockholders of record as of the close of business on May 4, 2026. Earnings Conference Call        Hanmi Bank will host its second quarter 2026 earnings conference call today, July 21, 2026, at 2:00 p.m. PST (5:00 p.m. EST) to discuss these results. This call will also be webcast. To access the call, please dial 1-877-407-9039 before 2:00 p.m. PST, using access code Hanmi Bank. To listen to the call online, either live or archived, please visit Hanmi’s Investor Relations website at https://investors.hanmi.com/ where it will also be available for replay approximately one hour following the call. About Hanmi Financial Corporation Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 32 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com. Forward-Looking Statements This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following: a failure to maintain adequate levels of capital and liquidity to support our operations; general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions; volatility and deterioration in the credit and equity markets; changes in investor sentiment or consumer spending, borrowing and savings habits; availability of capital from private and government sources; demographic changes; competition for loans and deposits and failure to attract or retain loans and deposits; inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding; our ability to enter new markets successfully and capitalize on growth opportunities; the current or anticipated impact of military conflict, terrorism or other geopolitical events; the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams; risks of natural disasters; legal proceedings and litigation brought against us; risks associated with cybersecurity threats, data breaches, ransomware attacks, or other failures in our operational or security systems and infrastructure, including the risks arising from our dependence on third-party service providers and vendors; failure to maintain current technologies; risks associated with Small Business Administration loans; failure to attract, develop, or retain key employees; our ability to access cost-effective funding; the imposition of tariffs or other domestic or international governmental policies, trade restrictions, and any retaliatory measures impacting our borrowers and the broader economy; the impact of a potential federal government shutdown, which may impact on our ability to effect sales of Small Business Administration loans or debt ceiling impasses or fiscal uncertainty; changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; fluctuations in real estate values; changes in accounting policies and practices; changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System; the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests; strategic transactions we may enter into, including the costs associated with the evaluation of any strategic opportunities and the overall effects of any acquisitions or dispositions we may make; the adequacy of and changes in the economic assumptions and methodology for computing our allowance for credit losses; our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses; changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements; our ability to control expenses; the inability of third-party service providers to perform their obligations to us; and the ability of the Company to withstand disruptions that may be caused by any failure of the operational systems of third parties. In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law. Investor Contacts:Romolo (Ron) SantarosaSenior Executive Vice President & Chief Financial Officer213-427-5636 Lisa FortunaInvestor RelationsFinancial Profiles, [email protected] 310-622-8251 Hanmi Financial Corporation and SubsidiariesConsolidated Balance Sheets (Unaudited)(Dollars in thousands) Hanmi Financial Corporation and Subsidiaries Consolidated Statements of Income (Unaudited)(Dollars in thousands, except share and per share data) Hanmi Financial Corporation and Subsidiaries Consolidated Statements of Income (Unaudited)(Dollars in thousands, except share and per share data) Hanmi Financial Corporation and Subsidiaries Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)(Dollars in thousands) Hanmi Financial Corporation and Subsidiaries Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)(Dollars in thousands) 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) 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)

Hanmi Financial (HAFC) came out with quarterly earnings of $0.79 per share, beating the Zacks Consensus Estimate of $0.77 per share. This compares to earnings of $0.5 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.60%. A quarter ago, it was expected that this bank holding company would post earnings of $0.71 per share when it actually produced earnings of $0.75, delivering a surprise of +5.63%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Hanmi Financial, which belongs to the Zacks Banks - West industry, posted revenues of $72.21 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 2.49%. This compares to year-ago revenues of $65.21 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hanmi Financial shares have added about 19.1% since the beginning of the year versus the S&P 500's gain of 8.7%. While Hanmi Financial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hanmi Financial was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.81 on $75.7 million in revenues for the coming quarter and $3.16 on $298.25 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, FS Bancorp (FSBW), is yet to report results for the quarter ended June 2026. This bank holding company is expected to post quarterly earnings of $1.13 per share in its upcoming report, which represents a year-over-year change of +14.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. FS Bancorp's revenues are expected to be $38.6 million, up 3.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hanmi Financial Corporation (HAFC) : Free Stock Analysis Report FS Bancorp, Inc. (FSBW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Hanmi Financial Corporation? Here are five stocks we like better. Hanmi Financial posted stronger Q2 2026 results, with net income rising to $23.5 million, or $0.79 per share, and improved profitability metrics including a 1.2% return on average assets and 11.1% return on average equity. Loan and deposit growth remained healthy, led by commercial real estate and continued strength in the Corporate Korea initiative. Total deposits rose 2.3% sequentially, while Corporate Korea deposits hit a record $1.2 billion and C&I loans continued to be a strategic growth focus. Credit quality stayed strong and management expects stability ahead, despite one delinquent CRE loan that was described as isolated and well-secured. Hanmi said expenses should stay near the current run rate, and net interest margin is expected to remain generally stable for the rest of the year. Hanmi Financial (NASDAQ:HAFC) reported higher second-quarter 2026 earnings as management pointed to loan production, deposit growth, expense discipline and improved credit metrics as key drivers of performance. President and Chief Executive Officer Bonnie Lee said the company generated net income of $23.5 million, or $0.79 per diluted share, compared with $22.6 million, or $0.75 per diluted share, in the prior quarter. Lee said return on average assets rose to 1.2%, while return on average equity improved to 11.1%. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks “Hanmi delivered another quarter of a strong financial performance driven by solid earnings growth, expanding customer relationships, disciplined execution, and excellent credit quality,” Lee said on the call. The company returned $13.6 million to shareholders through dividends and share repurchases during the quarter, according to Lee. Chief Financial Officer Romolo Santarosa later said Hanmi repurchased 160,000 shares at an average price of $30.24, with 1.99 million shares remaining under its current authorization. → Cybersecurity Stocks Are Holding Up as the AI Trade Starts to Crack Santarosa said net interest income increased 1% from the first quarter to $63.9 million. Net interest margin declined two basis points to 3.36%, a move he attributed largely to a change in dividend practices at the Federal Home Loan Bank of San Francisco. He said that change reduced second-quarter interest income by approximately $612,000, or about three basis points. Excluding that impact, Santarosa said underlying margin performance was “essentially stable.” Average interest-earning assets rose 1.1%, average deposits increased 2.7%, loan yields held steady at 5.9%, and the cost of interest-bearing deposits fell to 3.17%. → Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Assuming no changes in Federal Reserve policy, Santarosa said management expects net interest margin to remain stable through the rest of the year. In response to a question from KBW analyst Kelly Motta, he said competitive pressures could move savings and money market costs slightly higher, while certificate of deposit repricing may provide only modest relief. He described the margin outlook as having potential to move “one to three basis points” in either direction but generally remaining within a narrow range. Chief Banking Officer Anthony Kim said second-quarter loan production totaled $372 million, down $6 million, or 1.6%, from the prior quarter. The weighted average interest rate on production was 6.59%, compared with 6.54% in the first quarter. Kim said the decline was primarily due to lower production in commercial and industrial, Small Business Administration and equipment finance loans, partially offset by increases in commercial real estate and residential mortgage lending. C&I production was $89 million, with Corporate Korea representing $22 million, or 25% of total C&I production. CRE production was $171 million, up $39 million, or 29.4%, from the prior quarter. SBA production declined $4 million to $37 million. Residential mortgage production rose 72%, or $21 million, to $50 million. Kim said C&I loan balances increased 1.6% from the prior quarter and 27.6% from the same period a year earlier. C&I loans represented 18% of the total loan portfolio, up from 14% one year ago. CRE loans remained 61% of total loans, and Kim said the CRE portfolio had a weighted average loan-to-value ratio of approximately 47% and a weighted average debt service coverage ratio of 2.2 times. During the question-and-answer portion of the call, Lee said Hanmi expects C&I growth to continue to be a primary driver in the second half of the year, along with contributions from commercial real estate. She reiterated that the company expects low- to mid-single-digit loan growth for 2026. Lee said deposits grew 2.3% from the prior quarter, driven by a 5.2% increase in non-interest-bearing accounts, led by commercial accounts. Non-interest-bearing deposits represented 31% of total deposits. Hanmi’s Corporate Korea initiative continued to expand during the quarter. Lee said deposits from Corporate Korea clients increased 6.2% to $1.2 billion, reaching an all-time high and representing approximately 17% of total deposits. Loan balances tied to the initiative grew to $826 million, representing 13% of the total loan portfolio, according to Lee. Kim said Corporate Korea deposit balances rose by $70 million, or 6%, surpassing $1.2 billion. At quarter-end, Corporate Korea deposits represented 17% of both total deposits and demand deposits. Asked by Piper Sandler analyst Adam Crowell about loan demand among Corporate Korea clients, Lee said borrowers remain cautious because of economic uncertainty, rising energy costs and geopolitical concerns. However, she said Hanmi is seeing deposit inflows from clients preparing for additional investment in the United States. Management emphasized credit quality throughout the call. Lee said non-performing loans improved to 0.15% of total loans, while non-performing assets improved to 0.12% of total assets. Kim said delinquencies increased during the quarter because of a $21.2 million CRE credit that had been previously identified and downgraded in the prior quarter. The loan became delinquent and was moved from special mention to classified. Kim said Hanmi commissioned an appraisal and a property condition report and found the collateral to be in good condition, adding that the bank is “well-secured” on the loan and views it as an isolated situation. Santarosa said credit loss expense was $1.2 million, while net charge-offs were minimal. Lee said Hanmi was comfortable with its allowance for credit losses coverage of 1.08% of the loan portfolio. Non-interest income was $8.3 million, with results affected by lower SBA loan sales volume compared with the first quarter, partially offset by growth in trade finance and other service fee income, Santarosa said. Hanmi sold $20.6 million of SBA loans at an average premium of 7.92% during the quarter. Non-interest expense increased 1.7% to $39 million, primarily due to higher salaries and benefits and the absence of a gain on the sale of other real estate owned that was recognized in the first quarter. The efficiency ratio was 54.1%, while non-interest expense represented 1.99% of average assets on an annualized basis. In response to Motta, Santarosa said expenses should remain “in and around that same run rate” in the second half, with no major upward trend currently expected. Lee closed the call by saying Hanmi enters the second half of 2026 “from a position of strength,” citing loan and deposit pipelines, portfolio diversification, expense discipline and conservative risk management as priorities for the remainder of the year. Hanmi Financial Corporation is a bank holding company based in California, primarily operating through its wholly owned subsidiary, Hanmi Bank. Established in 1982 to serve the Korean‐American community in Los Angeles, the company has expanded its footprint to include branch locations throughout California as well as markets in Illinois, Texas and Washington State. Hanmi Bank offers a comprehensive suite of commercial and consumer banking products designed to meet the needs of small and medium‐sized businesses, professionals and individual clients. On the commercial banking side, Hanmi Bank provides business checking and savings accounts, lines of credit, commercial real estate lending and SBA‐guaranteed loans. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Hanmi Financial Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Net Income: $22.6 million or $0.75 per diluted share. Net Interest Margin: Expanded by 10 basis points to 3.38%. Return on Average Assets: 1.18%. Return on Average Equity: 10.8%. Deposit Growth: 7% on an annualized basis. C&I Loan Production: Increased by 64% to $135 million. Nonperforming Assets: Decreased by 38% to 0.16% of total assets. Efficiency Ratio: Improved by 150 basis points to 53.5%. Shareholder Returns: Dividends and share repurchases totaling $13.4 million. Pre-provision Net Revenue: Increased to $33.4 million, up 4.1% from the fourth quarter. Noninterest Income: Increased 2.9% to $8.5 million. Noninterest Expense: Declined by 1.9% to $38.4 million. Effective Tax Rate: 26% for the first quarter. Share Repurchase: $4.8 million of common stock repurchased. Tangible Common Equity per Share: Increased 1.1% to $26.56 per share. Warning! GuruFocus has detected 5 Warning Sign with HAFC. Is HAFC fairly valued? Test your thesis with our free DCF calculator. Release Date: April 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Hanmi Financial Corp (NASDAQ:HAFC) reported strong financial results for the first quarter of 2026, with net income of $22.6 million or $0.75 per diluted share, showing growth on both sequential and year-over-year bases. Net interest margin expanded by 10 basis points to 3.38%, marking the seventh consecutive quarter of expansion, driven by favorable spreads on new loan production and reduced cost of funds. Deposits grew by 7% on an annualized basis, with noninterest-bearing deposits remaining healthy at approximately 30% of total deposits. Nonperforming assets decreased by 38%, representing 0.16% of total assets, indicating strong asset quality and effective risk management. The efficiency ratio improved by 150 basis points to 53.5%, reflecting disciplined expense management and operational efficiency. Total loan balances experienced a slight decline due to higher-than-normal payoffs, despite solid new loan originations. Residential mortgage loan production decreased by 59% from the previous quarter, indicating a slowdown in this segment. SBA loan production declined by $3 million from the prior quarter, reflecting challenges in maintaining momentum in this area. The effective tax rate is expected to increase in future quarters, potentially impacting net income. Ongoing economic uncertainty and rising energy prices are causing caution among clients, leading to subdued loan demand, particularly in the Corporate Korea segment. Q: Was there any specific industry or geography driving the strong C&I loan growth, and do you expect C&I to be the main driver of growth for the year? A: Bonita Lee, President and CEO, stated that the C&I growth was broad-based across different industries and geographies. C&I is expected to be a focus for growth, but other portfolios will also contribute to the low to mid-single-digit growth target for the year. Q: Can you provide more details on the loans that were downgraded to special mention and class during the quarter? A: Bonita Lee explained that a $1.2 million retail commercial real estate loan was downgraded due to the loss of a major tenant, but it remains current and is supported by personal guarantees. A $5 million hospitality industry loan was downgraded due to construction impacts but is expected to improve. Both loans are paying as agreed, and no losses are expected. Q: Do you expect to remain active in share repurchases given your healthy capital levels? A: Romolo Santarosa, CFO, indicated that given the strength of the balance sheet and asset quality, the Board is likely to continue share repurchases at a similar level to the first quarter. Q: What are your expectations for expenses and any planned investments for the year? A: Romolo Santarosa mentioned that there are no significant planned expenditures, and the first quarter's expense trend is indicative of expectations for the year. Ordinary investments will continue, but no major changes are anticipated. Q: How do you view the current client sentiment in Corporate Korea given recent macroeconomic conditions? A: Anthony Kim, Chief Banking Officer, noted that while tariffs are no longer seen as an obstacle, economic uncertainty and rising costs are causing companies to be cautious, opting to use excess cash rather than taking on new loans. However, there is a continued inflow of deposits from Korea. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Hanmi Financial (HAFC) came out with quarterly earnings of $0.75 per share, beating the Zacks Consensus Estimate of $0.71 per share. This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.13%. A quarter ago, it was expected that this bank holding company would post earnings of $0.71 per share when it actually produced earnings of $0.7, delivering a surprise of -1.41%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Hanmi Financial, which belongs to the Zacks Banks - West industry, posted revenues of $71.74 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.83%. This compares to year-ago revenues of $62.82 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hanmi Financial shares have added about 4.4% since the beginning of the year versus the S&P 500's gain of 3.9%. While Hanmi Financial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hanmi Financial was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.74 on $73.05 million in revenues for the coming quarter and $3.00 on $295.2 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Avidbank Holdings Inc. (AVBH), another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on April 27. This company is expected to post quarterly earnings of $0.80 per share in its upcoming report, which represents a year-over-year change of +12.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Avidbank Holdings Inc.'s revenues are expected to be $28.2 million, up 37.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hanmi Financial Corporation (HAFC) : Free Stock Analysis Report Avidbank Holdings Inc. (AVBH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research