HAFC · Hanmi Financial Corporation

Hanmi Financial Corporation delivered strong first quarter 2026 results, with net income increasing 6.2% to $22.6 million, or $0.75 per diluted share, compared to the prior quarter. The performance was driven by a combination of net interest margin expansion, disciplined expense management, and improved credit quality. Net interest margin expanded 10 basis points to 3.38%, primarily reflecting a 16 basis point decline in the cost of interest-bearing deposits, which outpaced a modest decline in loan yields. This funding cost management underscores the stability of the Bank's deposit base, with noninterest-bearing demand deposits comprising approximately 30% of total deposits.

Asset quality metrics showed marked improvement. Nonperforming assets decreased 38% to $12.4 million, or 0.16% of total assets, aided by the payoff of a large commercial real estate loan and the sale of foreclosed properties. However, criticized loans increased to $116.4 million (1.78% of total loans), driven primarily by a $21.2 million downgrade of a commercial real estate loan to special mention. The allowance for credit losses increased slightly to 1.08% of loans, supported by a $2.9 million credit loss expense provision.

Capital ratios continued to strengthen, with the Common Equity Tier 1 capital ratio improving 15 basis points to 12.20%. The Company remained active in capital return, distributing $8.6 million in dividends and repurchasing $4.8 million of common stock during the quarter. Management expressed confidence in the continued execution of its growth strategy, citing a strong pipeline for both loans and deposits and the successful diversification of the loan portfolio, with C&I loans reaching 17.6% of total loans.