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]

Company Overview - Hanmi Financial Corporation is the holding company for Hanmi Bank, headquartered in Los Angeles, California, and operates 32 full-service branches across multiple states including Georgia [4] - The Duluth branch is Hanmi's first full-service branch in Georgia, located less than 30 miles from Atlanta [2] Economic Context - Georgia is a significant hub for Korean business investment, with Korean companies announcing over $10 billion in new investments and creating more than 12,600 jobs in fiscal year 2023 [2] - Total trade between Georgia and Korea reached $17.5 billion last year, highlighting the strong economic partnership [2] Branch Services and Community Engagement - The Duluth branch offers a comprehensive range of personal and business banking services, including checking and savings accounts, commercial lending, and SBA loans [3] - The company aims to support local businesses and individuals, contributing to the economic vitality of the region through a relationship-based banking model [3] Leadership Statements - Bonnie Lee, President and CEO of Hanmi Financial Corporation, emphasized the importance of the expansion in Georgia as a step in the company's growth plans and expressed excitement about being part of the Duluth community [3]

[Part I – Financial Information](index=3&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's unaudited statements show asset growth to $7.73 billion and a net income increase to $17.7 million [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $7.73 billion, driven by increases in net loans and total deposits Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Total Assets | $7,729,035 | $7,677,925 | | Loans receivable, net | $6,211,592 | $6,181,230 | | Securities available for sale | $907,011 | $905,798 | | **Liabilities & Equity** | | | | Total Deposits | $6,619,475 | $6,435,776 | | Borrowings | $117,500 | $262,500 | | Total Stockholders' Equity | $751,485 | $732,174 | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Q1 2025 net income rose to $17.7 million, driven by higher net interest income and lower noninterest expenses Q1 2025 vs. Q1 2024 Income Statement (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Income | $55,092 | $50,655 | | Credit Loss Expense | $2,721 | $227 | | Noninterest Income | $7,726 | $7,733 | | Noninterest Expense | $34,984 | $36,445 | | Net Income | $17,672 | $15,164 | | Diluted EPS | $0.58 | $0.50 | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, including a new methodology for estimating the allowance for credit losses (ACL) - Effective January 1, 2025, the Company changed its methodology for estimating expected credit losses on its loan portfolio from a Probability of Default / Loss Given Default (PD/LGD) model to a **historical loss rate approach**[24](index=24&type=chunk)[25](index=25&type=chunk) - The company and its subsidiary bank **exceeded all minimum regulatory capital requirements** to be considered 'well capitalized' as of March 31, 2025[83](index=83&type=chunk)[86](index=86&type=chunk) Securities Available for Sale (in thousands) | Security Type | Fair Value (Mar 31, 2025) | Fair Value (Dec 31, 2024) | | :--- | :--- | :--- | | U.S. government agency and sponsored agency obligations | $752,823 | $751,860 | | U.S. Treasury securities | $89,631 | $88,929 | | Municipal bonds-tax exempt | $64,557 | $65,009 | | **Total** | **$907,011** | **$905,798** | Loan Portfolio Composition (in thousands) | Loan Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total real estate loans | $4,955,187 | $4,900,924 | | Commercial and industrial loans | $854,406 | $863,431 | | Equipment financing agreements | $472,596 | $487,022 | | **Total Loans Receivable** | **$6,282,189** | **$6,251,377** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's analysis highlights a 16.4% net income increase, expanded net interest margin, and a rise in nonperforming loans - Net income for Q1 2025 was **$17.7 million**, up from $15.2 million for Q1 2024, driven by higher net interest income and lower noninterest expense[177](index=177&type=chunk) - **Nonperforming assets increased significantly to $35.7 million** (0.46% of total assets), primarily due to a $20.0 million commercial real estate office loan being designated as nonaccrual[212](index=212&type=chunk)[215](index=215&type=chunk)[217](index=217&type=chunk) - The company adopted a new Allowance for Credit Losses (ACL) methodology, transitioning to a **historical loss rate approach adjusted for economic forecasts** from Moody's[160](index=160&type=chunk)[224](index=224&type=chunk)[228](index=228&type=chunk) Key Performance Ratios | Ratio | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Return on average assets | 0.94% | 0.81% | | Return on average stockholders' equity | 8.92% | 7.90% | | Net interest margin (taxable equivalent) | 3.02% | 2.78% | [Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company demonstrates asset sensitivity, with Net Interest Income projected to rise with increasing interest rates Interest Rate Sensitivity Analysis (as of March 31, 2025) | Change in Rates (bps) | 1-12 Month NII % Change | EVE % Change | | :--- | :--- | :--- | | +300 | 8.30% | 10.31% | | +200 | 5.52% | 7.75% | | +100 | 2.98% | 4.83% | | -100 | (3.57%) | (7.68%) | | -200 | (7.23%) | (17.79%) | | -300 | (10.48%) | (29.75%) | [Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes in internal controls - The Chief Executive Officer and Chief Financial Officer concluded that the company's **disclosure controls and procedures were effective** as of March 31, 2025[258](index=258&type=chunk) - **No material changes in internal control over financial reporting** occurred during the quarter, and the change in CECL model methodology did not impact these controls[259](index=259&type=chunk) [Part II – Other Information](index=61&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) [Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) Routine litigation is not expected to have a material adverse impact on the company's financial condition - Hanmi Financial and its subsidiaries are involved in routine litigation, which management believes **will not have a material adverse financial impact**[262](index=262&type=chunk) [Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported to the risk factors disclosed in the 2024 Annual Report - **No material changes in risk factors** have occurred since the company's 2024 Annual Report on Form 10-K[263](index=263&type=chunk) [Issuer Purchases of Equity Securities](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company repurchased 50,000 shares in Q1 2025, with 1.18 million shares remaining under the buyback program - As of March 31, 2025, **1,180,500 shares remained available for future purchases** under the company's stock repurchase program[264](index=264&type=chunk) Common Stock Repurchases in Q1 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | March 1-31, 2025 | 50,000 | $22.49 | | **Total Q1 2025** | **50,000** | **$22.49** | [Exhibits](index=62&type=section&id=Item%206.%20Exhibits) Filed exhibits include amendments to executive employment agreements and required officer certifications - Filed exhibits include amendments to employment agreements for Bonita I. Lee and Romolo C. Santarosa, as well as **CEO and CFO certifications** pursuant to Sarbanes-Oxley Sections 302 and 906[269](index=269&type=chunk)

Core Insights - Hanmi Financial Corporation will participate in the D.A. Davidson 27th Annual Financial Institutions Conference on May 6-7, 2025, in Scottsdale, AZ [1] - Bonnie Lee, President and CEO, and Ron Santarosa, CFO, will conduct one-on-one and small group meetings during the conference [1] 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 [3] - The bank serves multi-ethnic communities and specializes in real estate, commercial, SBA, and trade finance lending to small and middle market businesses [3] Investor Relations - A copy of the presentation for institutional investors will be available in the Investor Relations section of the company's website [2] - Investor contacts include Ron Santarosa, CFO, and Lisa Fortuna from Financial Profiles, Inc. [4]

Group 1 - Hanmi Financial Corporation released its 2024 annual letter to shareholders titled "Successfully Navigating a Dynamic Market Environment" authored by President and CEO Bonnie Lee [1] - Hanmi Financial Corporation is headquartered in Los Angeles, California, and owns Hanmi Bank, which operates 32 full-service branches and additional loan production offices and centers across multiple states [2] - Hanmi Bank specializes in lending for real estate, commercial, SBA, and trade finance, targeting small and middle market businesses [2] Group 2 - The company serves multi-ethnic communities through its extensive branch network in states including California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington, and Georgia [2] - Investor contacts for Hanmi Financial Corporation include Romolo (Ron) Santarosa, Senior Executive Vice President & CFO, and Lisa Fortuna from Financial Profiles, Inc. [3]

Company Overview - Hanmi Financial is headquartered in Los Angeles and has experienced a price change of -3.73% this year [3] - The company currently pays a dividend of $0.27 per share, resulting in a dividend yield of 4.75%, which is higher than the Banks - West industry's yield of 3.33% and the S&P 500's yield of 1.65% [3] Dividend Performance - The current annualized dividend of Hanmi Financial is $1.08, reflecting an 8% increase from the previous year [4] - Over the past five years, the company has increased its dividend three times year-over-year, with an average annual increase of 27.60% [4] - The company's payout ratio stands at 51%, indicating that it paid out 51% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, Hanmi Financial anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $2.55 per share, representing a year-over-year earnings growth rate of 24.39% [5] Investment Considerations - Hanmi Financial is viewed as a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 2 (Buy) [7]

In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law. Investor Contacts: LOS ANGELES, April 24, 2025 (GLOB ...

Core Insights - Hanmi Financial reported revenue of $62.82 million for the quarter ended March 2025, reflecting a year-over-year increase of 7.6% [1] - The earnings per share (EPS) for the quarter was $0.58, up from $0.50 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $61.7 million by 1.81%, while the EPS also surpassed the consensus estimate of $0.57 by 1.75% [1] Financial Metrics - The net interest margin for Hanmi Financial was reported at 3%, matching the average estimate from two analysts [4] - The efficiency ratio was 55.7%, better than the average estimate of 57.9% from two analysts [4] - Total non-interest income was $7.73 million, exceeding the estimated $7.37 million from two analysts [4] Stock Performance - Over the past month, shares of Hanmi Financial have returned -5.9%, compared to a -8.9% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

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. Hanmi Financial (HAFC) came out with quarterly earnings of $0.58 per share, beating the Zacks Consensus Estimate of $0.57 per share. This compares to earnings of $0.50 per share a year ago. These figures are adjusted for ...