UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From To Commission File Number: 000-30421 HANMI FINANCIAL CORPORATION (Exact Name of Registrant as Specified in its Charter) Delaware 95-4788120 (State or Other Jurisdiction o ...

Company Overview - Hanmi Financial Corporation is headquartered in Los Angeles, California, and owns Hanmi Bank, which operates 32 full-service branches, five loan production offices, and three loan centers across multiple states including California, Colorado, Georgia, Illinois, New Jersey, New York, Texas, Virginia, and Washington [3] - Hanmi Bank specializes in lending for real estate, commercial, SBA, and trade finance, targeting small and middle market businesses [3] Conference Participation - Hanmi Financial Corporation will participate in the 26th Annual KBW Community Bank Investor Conference on July 29 and 30, 2025, in New York City [1] - Bonnie Lee, President and CEO, along with Ron Santarosa, CFO, will conduct one-on-one and small group meetings during the conference [1] Investor Relations - A copy of the presentation for institutional investors will be available in the Investor Relations section of the company's website [2]

Core Viewpoint - Hanmi Financial reported quarterly earnings of $0.5 per share, missing the Zacks Consensus Estimate of $0.62 per share, representing an earnings surprise of -19.35% [1][2] Financial Performance - The company posted revenues of $65.21 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.29%, compared to year-ago revenues of $56.68 million [2] - Over the last four quarters, Hanmi Financial has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - Hanmi Financial shares have increased approximately 9.7% since the beginning of the year, outperforming the S&P 500's gain of 7.2% [3] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.66 on revenues of $66.8 million, and for the current fiscal year, it is $2.54 on revenues of $263 million [7] - The estimate revisions trend for Hanmi Financial was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Zacks Industry Rank for Banks - West is currently in the top 28% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8]

Financial Data and Key Metrics Changes - Net income for Q2 2025 was $15.1 million or $0.50 per diluted share, down from $17.7 million and $0.58 in Q1 2025, primarily due to increased credit loss expense [6][7] - Return on average assets was 0.79% and return on average equity was 7.8% [7] - Pre-provision net revenues grew 3.7% or $1 million, indicating strength in core business [7] - Net interest margin increased by five basis points to 3.07%, driven by lower funding costs [7][22] Business Line Data and Key Metrics Changes - Total loans increased by $6.31 billion, or 0.4% on a linked quarter basis, with higher contributions from commercial and industrial (C&I) and residential mortgage loans [8] - C&I production increased by $11 million or 26% to $503 million, while residential mortgage loan production rose by 52% to $84 million [18] - SBA loan production decreased to $47 million but still exceeded the high end of the target range, with year-to-date production up 20% [16][18] Market Data and Key Metrics Changes - Non-interest bearing demand deposits increased by over 7% from 2024, representing 31.3% of total deposits [9] - USKC loan and deposit portfolios remained steady, with USKC loans at $842 million, approximately 13% of total loans [19] Company Strategy and Development Direction - The company aims to drive loan growth in the low to mid single-digit range, focusing on expanding SBA activities and C&I portfolios while reducing exposure to commercial real estate (CRE) [11][28] - The strategy includes strengthening relationships in select deposit-rich markets and driving growth in key regions [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth potential despite current economic conditions, emphasizing proactive portfolio management and strong asset quality [10][11][28] - The company is well-positioned for growth, leveraging strong liquidity and maintaining robust credit metrics [11] Other Important Information - Asset quality improved significantly, with criticized loans decreasing by 72% and non-accruals down 27% [21] - The allowance for credit losses stood at 1.06% of loans at the end of Q2 2025 [26] Q&A Session Summary Question: Loan growth expectations for the second half of the year - Management indicated a strong pipeline for new loans, suggesting potential to reach mid-single-digit growth [31][32] Question: Insights on deposit costs and time deposit repricing - Average interest-bearing deposit costs were 3.64%, with expectations for net interest margin to continue increasing, albeit at a slowing rate [35][37] Question: Credit quality and criticized asset levels - Management noted significant reductions in criticized assets due to proactive management, with confidence in the overall credit quality [39][41] Question: Future C&I production and loan growth - C&I production is expected to drive loan growth in the latter half of the year, supported by a strong pipeline [47][49] Question: Plans for share buybacks and expenses - Management indicated that buyback decisions are made quarterly, with expectations for expenses to remain stable [50][51]

Financial Data and Key Metrics Changes - Net income for Q2 2025 was $15.1 million or $0.50 per diluted share, down from $17.7 million and $0.58 in Q1 2025, primarily due to an increase in credit loss expense [5][6] - Return on average assets was 0.79% and return on average equity was 7.8% [6] - Pre-provision net revenues grew 3.7% or $1 million, indicating strength in core business [6] - Net interest margin increased by five basis points to 3.07%, driven by lower funding costs [6][22] - Total loans increased by $6.31 billion, or 0.4% on a linked quarter basis, with a 1.6% annualized growth [7] Business Line Data and Key Metrics Changes - Loan production for Q2 was $330 million, down 4.7% from the prior quarter, with a weighted average interest rate of 7.1% [14] - Commercial real estate (CRE) production was $112 million, down 24% from the prior quarter [15] - SBA loan production decreased to $47 million but exceeded the high end of the quarterly target range [15] - C&I production increased by 26% to $53 million, attributed to new talent and growth efforts [17] - Residential mortgage loan production was $84 million, up 52% from the previous quarter [18] Market Data and Key Metrics Changes - Non-interest bearing demand deposits increased by over 7% from 2024, representing 31.3% of total deposits [9] - USKC loan and deposit portfolios remained steady, with USKC loans at $842 million, approximately 13% of the total loan portfolio [19] - Deposits increased by 1.7% in Q2, driven by new commercial accounts and contributions from new branches [20] Company Strategy and Development Direction - The company aims to drive loan growth in the low to mid single-digit range, focusing on expanding SBA activities and C&I portfolios while reducing exposure to CRE [11] - The strategy includes strengthening relationships in select deposit-rich markets and driving growth in key regions [28] - The company is optimistic about long-term growth potential despite current economic conditions [10][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute effectively and deliver sustained profitable growth [28] - The economic outlook remains dynamic, with many USKC customers taking a wait-and-see approach regarding tariffs and their impact on the economy [10] - The company is well-positioned for growth, leveraging strong liquidity and maintaining robust credit metrics [11] Other Important Information - Asset quality improved significantly, with criticized loans decreasing by 72% and non-accruals decreasing by 27% [21] - The allowance for credit losses stood at 1.06% of loans at the end of Q2 [26] - The company repurchased 70,000 shares of common stock at an average price of $23.26, totaling $1.6 million [27] Q&A Session Summary Question: Loan growth expectations for the second half of the year - Management indicated that the second half typically sees higher production, with a strong pipeline of new loans already established [32] Question: Insights on margin and deposit costs - Average interest-bearing deposit costs were 3.64% for the quarter, with expectations for net interest margin to continue increasing, albeit at a slowing rate [35][37] Question: Credit quality and criticized assets - Management noted significant success in resolving loans in the special mention category, contributing to improved asset quality metrics [41] Question: C&I production driving loan growth - C&I production is expected to drive loan growth in the second half, supported by a higher pipeline and ongoing efforts to target more C&I opportunities [49] Question: Plans for additional hires in C&I and SBA - Major hires were completed in the first half, and the number of new relationship managers is expected to remain steady [60]

Financial Performance - Net income for the second quarter was $15.1 million, a decrease of 14.5% compared to the previous quarter, primarily due to credit loss expense[8, 33] - Preprovision net revenues increased by 3.7%, or $1 million, driven by a 3.7% increase in net interest income and a 4.5% increase in noninterest income[9] - Net interest margin was 3.07%, up from 3.02% in the first quarter[8, 24] - Noninterest expense increased by 4% to $36.3 million, mainly due to a $1.1 million increase in salaries and benefits[43] Loan and Deposit Portfolio - Loan receivables reached $6.31 billion, a slight increase of 0.4% from the end of the first quarter[9] - Deposits totaled $6.73 billion, up 1.7% from the previous quarter, with noninterest-bearing deposits accounting for 31.3% of total deposits[9, 19] - Loan production for the second quarter was $329.6 million, with a weighted average interest rate of 7.10%[9] - The securities portfolio was $994.6 million, representing 13% of assets, with an unrealized loss position of $76.5 million[71] Asset Quality and Capital - Criticized loans decreased significantly by 71.8% to 0.74% of total loans, reflecting $85.3 million in loan upgrades, a $20 million loan payment, and an $8.6 million loan charge-off[9] - Nonaccrual loans fell by 26.8% to 0.41% of total loans, and loan delinquencies declined to 0.17% of total loans[9] - The ratio of tangible common equity to tangible assets was 9.58%, and the common equity tier 1 capital ratio was 12.12%, remaining essentially unchanged from the first quarter[9]

EXHIBIT 99.1 Hanmi Reports 2025 Second Quarter Results LOS ANGELES, July 22, 2025 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ: HAFC, or "Hanmi"), the parent company of Hanmi Bank (the "Bank"), today reported financial results for the second quarter of 2025. Net income for the second quarter of 2025 was $15.1 million, or $0.50 per diluted share, compared with $17.7 million, or $0.58 per diluted share for the first quarter of 2025. The return on average assets for the second quarter of 2025 was 0. ...

Core Viewpoint - Hanmi Financial Corporation reported a decline in net income for Q2 2025, primarily due to increased credit loss expenses, despite improvements in asset quality and operational metrics [2][3][7]. Financial Performance - Net income for Q2 2025 was $15.1 million, or $0.50 per diluted share, down from $17.7 million, or $0.58 per diluted share in Q1 2025 [2][7]. - Return on average assets decreased to 0.79% from 0.94%, and return on average equity fell to 7.48% from 8.92% [2][8]. - Preprovision net revenue grew by 3.7%, driven by lower funding costs and a 3.7% increase in net interest income [3][7]. Asset Quality - Significant improvement in asset quality was noted, with criticized loans dropping 71.8% to 0.74% of total loans, and nonaccrual loans falling 26.8% to 0.41% of total loans [7][18]. - Loan delinquencies decreased to 0.17% of total loans [7]. Loan and Deposit Growth - Loans receivable increased to $6.31 billion, up 0.4% from Q1 2025, with loan production for Q2 at $329.6 million [7][29]. - Deposits rose to $6.73 billion, a 1.7% increase from the previous quarter, with noninterest-bearing demand deposits accounting for 31.3% of total deposits [7][29]. Noninterest Income and Expenses - Noninterest income increased by 4.5% to $8.1 million, primarily due to gains from the sale of SBA loans [20][21]. - Noninterest expenses rose to $36.3 million, up 3.9% sequentially, driven by increases in salaries, professional fees, and advertising [21][22]. Capital Position - The capital position remained strong, with a tangible common equity to tangible assets ratio of 9.58% and a common equity tier 1 capital ratio of 12.12% [7][24].

Company Overview - Hanmi Financial Corporation is headquartered in Los Angeles, California, and owns Hanmi Bank, which serves multi-ethnic communities through a network of 32 full-service branches, five loan production offices, and three loan centers across several states including California, Colorado, Georgia, Illinois, New Jersey, New York, Texas, Virginia, and Washington [3] - Hanmi Bank specializes in real estate, commercial, SBA, and trade finance lending to small and middle market businesses [3] Upcoming Financial Results - Hanmi Financial Corporation will report its second quarter 2025 financial results after the market close on Tuesday, July 22, 2025 [1] - Management will host a conference call on the same day at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss the results [1] Accessing the Conference Call - Investment professionals and current and prospective shareholders can access the live call on July 22 by dialing 1-877-407-9039 before 2:00 p.m. Pacific Time, using access code "Hanmi Bank" [2] - The call can also be listened to online via the investor relations page of Hanmi's website, with a replay available approximately one hour following the call [2]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Hanmi Financial (HAFC) currently holding a Momentum Style Score of B [2] - The Zacks Rank system complements Style Scores, with HAFC rated 2 (Buy), indicating potential for outperformance in the market [3] Group 2: Performance Metrics - HAFC shares have increased by 8.82% over the past week, outperforming the Zacks Banks - West industry, which rose by 5.2% [5] - Over the last month, HAFC's price change is 10.21%, compared to the industry's 6.54% [5] - In the last quarter, HAFC shares rose by 23.51%, and over the past year, they increased by 52.76%, while the S&P 500 only moved 10.42% and 14.64% respectively [6] Group 3: Trading Volume and Earnings Outlook - HAFC's average 20-day trading volume is 150,512 shares, which serves as a bullish indicator when combined with rising stock prices [7] - Recent earnings estimate revisions show one upward revision for the current fiscal year, increasing the consensus estimate from $2.53 to $2.54 [9] - For the next fiscal year, one estimate has also moved upwards, indicating positive sentiment around HAFC's earnings outlook [9] Group 4: Conclusion - Given the strong performance metrics and positive earnings outlook, HAFC is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a promising investment opportunity [11]