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 ...

Financial Data and Key Metrics Changes - Net income for the first quarter of 2025 was $17.7 million, or $0.58 per diluted share, representing an increase of 17% and 16% respectively compared to the first quarter of 2024 [7] - Return on average assets was 0.94% and return on average equity was 8.92% [7] - Net interest margin expanded by 11 basis points to 3.02%, driven by lower funding costs [7][22] - Total loans grew to $6.28 billion, a 0.5% increase on a linked quarter basis [8] - Non-interest income increased by 5% primarily due to the sale of SBA loans [8][23] - Deposits grew by 3% in the first quarter, reflecting new commercial accounts and contributions from new branches [8][20] Business Line Data and Key Metrics Changes - Loan production for the first quarter was $346 million, up 2% from the prior quarter [15] - Residential mortgage loan production increased by 37% to $55 million due to higher demand [19] - SBA loan production increased to $55 million, exceeding the quarterly target range [17] - C&I production decreased by 30% to $42 million, while total commitments for commercial lines of credit increased by 6% [18] - USKC loan balances were $932 million, down 0.5% from the prior quarter [20] Market Data and Key Metrics Changes - Non-interest bearing demand deposits increased by 7% over the past year, representing 31.2% of total deposits [9] - The provision for credit loss expense increased due to a CRE loan that was downgraded to non-performing status [21] - The allowance for credit losses as a percentage of loans remained stable at 1.12% [11] Company Strategy and Development Direction - The company aims to generate loan growth in the low to mid-single digit range while focusing on expanding its C&I portfolio [12] - The strategy includes diversifying and growing the loan and deposit portfolio while maintaining strong asset quality [10][26] - The company is expanding its geographic footprint, with a new branch opened in Duluth, Georgia, targeting the Korean community [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the current level of economic uncertainty but remains focused on delivering personalized relationship-driven banking [26] - The company is optimistic about its growth strategy and the potential for new relationships, particularly among mid-sized companies [10][12] - Management noted that while the loan pipeline is solid, macroeconomic conditions will be closely monitored [13] Other Important Information - The efficiency ratio improved to 55.69%, the best quarterly performance since Q4 2023 [9] - The company repurchased 50,000 shares at an average price of $22.49 during the first quarter [25] - Tangible book value per share increased by 2.6% to $24.49 [25] Q&A Session Summary Question: How is the pipeline looking and any potential tariff impacts? - The second quarter pipeline appears healthy, but loan demand may soften in the latter half of the year due to tariffs and economic uncertainty. USKC customers are reportedly in a better position than domestic companies [30][31] Question: How should expenses be modeled for the rest of the year? - Anticipated salary and benefits increases of 3% to 4% in Q2, with other expenses expected to behave in line with inflation [33] Question: Should elevated share repurchases be expected given the current stock price? - The Board reviews dividends and share repurchases each quarter, with a history of consistent repurchases over the past quarters [34] Question: Can you provide details on margin and deposit rates? - The average cost of time deposits was 4.1% in March, with expectations for some relief in the second and third quarters [38][40] Question: What is the status of the non-performing loan and its reserve? - The non-performing loan is a syndicated commercial real estate loan, with a reserve of $6.2 million set aside due to a collateral shortfall [44][45] Question: How large is the syndicated loan book as a percentage of the total loan book? - The syndicated loan book totals approximately $255 million, representing a very small percentage of the overall loan portfolio [46][47] Question: What are the expectations for future fee production? - Guidance for quarterly production stands at $87 million, with expectations for solid SBA pipeline performance [57]

Financial Data and Key Metrics Changes - Net income for Q1 2025 was $17.7 million, or $0.58 per diluted share, representing an increase of 17% and 16% respectively compared to Q1 2024 [11] - Return on average assets was 0.94%, and return on average equity was 8.92% [11] - Net interest margin expanded by 11 basis points to 3.02%, driven by lower funding costs [12] - Total loans grew to $6.28 billion, a 0.5% increase on a linked quarter basis [12] - Non-interest income increased by 5% primarily due to the sale of SBA loans [13] - Deposits grew by 3% in Q1, reflecting new commercial accounts and contributions from new branches [13] - Efficiency ratio improved to 55.69%, the best quarterly performance since Q4 2023 [14] Business Line Data and Key Metrics Changes - Loan production for Q1 was $346 million, up 2% from the prior quarter, with residential lending, SBA, and equipment finance contributing to the increase [24] - CNI production decreased by 30% to $42 million, while SBA loan production increased to $55 million, exceeding quarterly targets [27][28] - Residential mortgage loan production was $55 million, up 37% from the previous quarter [28] - USKC loan portfolio remained stable at approximately 15% of total loans, with deposits from USKC customers increasing to 15% of total deposits [15][30] Market Data and Key Metrics Changes - Non-interest-bearing demand deposits increased by 7% over the past year, representing 31.2% of total deposits [13] - Deposits from Corporate Korea clients saw a strong production of $85 million, a 166% increase compared to the previous quarter [31] Company Strategy and Development Direction - The company aims to generate loan growth in the low to mid single-digit range, focusing on expanding the CNI portfolio while reducing CRE as a percentage of the portfolio [20] - Plans to hire additional banking talent to expand the CNI business and increase core deposit growth [21] - The company is focused on maintaining strong asset quality through disciplined credit administration practices [22] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the current level of economic uncertainty but remains focused on delivering personalized, relationship-driven banking [41] - The company is optimistic about long-term opportunities and is committed to executing its growth strategy [41] Other Important Information - The allowance for credit losses as a percentage of loans remained stable at 1.12% [16] - A new branch was opened in Duluth, Georgia, targeting the growing Korean community [18] Q&A Session Summary Question: How is the pipeline looking and any potential tariff impacts? - The pipeline is healthy, but loan demand may soften due to tariffs and economic uncertainty [46][47] - USKC customers are reportedly in a better position regarding tariffs compared to domestic companies [48] Question: How should expenses be modeled for the rest of the year? - Anticipated 3% to 4% increase in salaries and benefits in Q2 due to annual merit increases [50][51] Question: Should elevated share repurchases be expected? - The board reviews dividends and share repurchases quarterly, with a history of repurchases over the past four quarters [53][55] Question: Can you provide details on margin and deposit rates? - March CD rates were 4.1%, with expectations for continued margin expansion but at a slower pace [60][62] Question: What is the status of the syndicated office loan? - The syndicated loan is $200 million, with the company holding a 10% interest [76][78] Question: How is the overall office CRE portfolio performing? - Over $200 million in office loans are maturing in 2025, with no current issues anticipated [79] Question: What are the expectations for SBA production going forward? - Guidance for quarterly SBA production is $42 to $45 million, with a solid pipeline expected [88][90]

Financial Data and Key Metrics Changes - Net income for Q1 2025 was $17.7 million, or $0.58 per diluted share, representing an increase of 17% and 16% respectively compared to Q1 2024 [11] - Return on average assets was 0.94%, and return on average equity was 8.92% [11] - Net interest margin expanded by 11 basis points to 3.02%, driven by lower funding costs [12] - Total loans grew to $6.28 billion, a 0.5% increase on a sequential basis [12] - Non-interest income increased by 5% primarily due to the sale of SBA loans [13] - Deposits grew by 3% in Q1, reflecting new commercial accounts and contributions from new branches [13] - Efficiency ratio improved to 55.69%, the best quarterly performance since Q4 2023 [14] Business Line Data and Key Metrics Changes - First quarter loan production was $346 million, up 2% from the prior quarter [24] - SBA loan production increased by $6 million to $55 million, exceeding quarterly targets [27] - CNI production decreased by 30% to $42 million [28] - Residential mortgage loan production was $55 million, up 37% from the previous quarter [28] - USKC loan portfolio remained stable at approximately 15% of total loans [15] Market Data and Key Metrics Changes - Non-interest-bearing demand deposits increased by 7% over the past year, representing 31.2% of total deposits [13] - Deposits from Corporate Korea clients increased significantly, contributing to a 166% increase compared to the previous quarter [31] - The new branch in Duluth, Georgia, has seen strong production in its first month [18] Company Strategy and Development Direction - The company aims to generate loan growth in the low to mid single-digit range while reducing CRE as a percentage of the portfolio [20] - Plans to hire additional banking talent to expand CNI business and increase core deposit growth [21] - Focus on maintaining strong asset quality through disciplined credit administration practices [22] - The company is well-positioned to expand its reach among Korean companies looking to establish or expand in the U.S. [15] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the current level of economic uncertainty but remains focused on delivering personalized, relationship-driven banking [41] - The company is optimistic about the long-term opportunities ahead, despite potential softening in loan demand due to tariffs and economic uncertainty [47] Other Important Information - The allowance for credit losses as a percentage of loans remained stable at 1.12% [16] - The company repurchased 50,000 shares at an average price of $22.49 during the quarter [39] Q&A Session Summary Question: How is the pipeline looking and any potential tariff impacts? - The second quarter pipeline looks healthy, but loan demand may soften in the latter half of the year due to tariffs and economic uncertainty [47] Question: How should expenses be modeled for the rest of the year? - Anticipated 3% to 4% increase in salaries and benefits in Q2, with other expenses behaving in line with inflation [51] Question: Should elevated share repurchases be expected? - The board reviews dividends and share repurchases each quarter, with a history of repurchases at varying amounts [55] Question: Can you provide details on margin and deposit rates? - March CDs were at 4.1%, with expectations for continued margin expansion but at a slower pace [60][62] Question: What is the status of the syndicated office loan? - The syndicated loan is $200 million, with the company holding a 10% interest [76] Question: How is the overall office CRE portfolio performing? - Over $200 million in office loans are maturing in 2025, with no current issues anticipated [79] Question: What are the expectations for SBA production going forward? - Guidance for quarterly SBA production is $42 to $45 million, with a solid pipeline expected [90]

Financial Performance - Net income for Q1 2025 was $17.7 million, or $0.58 per diluted share, unchanged from Q4 2024[3]. - Net income slightly decreased by 0.1% to $17,672 million, while year-over-year growth was 16.5%[48]. - Basic earnings per share remained stable at $0.59, with diluted earnings per share also at $0.58[48]. - The effective tax rate for Q1 2025 was 29.6%, compared to 30.1% in Q4 2024[18]. - Income tax expense was $7,441,000, a decrease from $7,632,000 in the previous quarter[58]. Asset and Deposit Growth - Total assets increased by 0.7%, or $51.1 million, to $7.73 billion as of March 31, 2025, compared to $7.68 billion at December 31, 2024[19]. - Total deposits reached $6.62 billion, up 2.9% from Q4 2024, with noninterest-bearing demand deposits comprising 31.2% of total deposits[8]. - Deposits increased by $183.7 million, or 2.9%, to $6.62 billion at the end of Q1 2025, driven by a $140.4 million increase in money market and savings deposits[24]. - Total deposits increased by 2.9% to $6,619,475,000 from $6,435,776,000 in December 2024[46]. Loan Performance - Loans receivable increased to $6.28 billion, a 0.5% rise from Q4 2024, with loan production for Q1 at $345.9 million[8]. - New loan production for Q1 2025 was $345.9 million with an average rate of 7.35%, while payoffs were $125.1 million at an average rate of 6.40%[22]. - Commercial real estate loans accounted for 63.1% of the loan portfolio as of March 31, 2025[22]. - Loans held-for-sale increased to $11.8 million at March 31, 2025, up from $8.6 million at December 31, 2024[20]. - Loans receivable, before allowance for credit losses, rose to $6.28 billion at March 31, 2025, up from $6.25 billion at December 31, 2024[19]. Credit Quality - Credit loss expense for Q1 was $2.7 million, up from $0.9 million in the prior quarter, with an allowance for credit losses of $70.6 million[8]. - Nonperforming loans stood at $35.6 million, or 0.57% of total loans, as of March 31, 2025[8]. - Nonperforming loans rose to $35.6 million at March 31, 2025, up from $14.3 million at the end of the prior quarter, primarily due to additions of $26.1 million[32]. - The allowance for credit losses was $70.6 million at March 31, 2025, with a ratio of allowance to loans remaining stable at 1.12%[35]. - Gross charge-offs for Q1 2025 were $3.2 million, compared to $3.4 million in the preceding quarter, resulting in net charge-offs of $1.9 million[34]. Efficiency and Profitability - The efficiency ratio improved to 55.69%, down from 56.79% in Q4 2024, marking the best quarterly efficiency since Q4 2023[9]. - The efficiency ratio improved to 55.7% in Q1-25 from 56.8% in Q4-24[17]. - Preprovision net revenues reached $27,834,000, reflecting a 5.9% increase from the previous quarter and a 26.8% increase year-over-year[58]. - Net interest income for Q1 was $55.1 million, reflecting a 3.1% increase from $53.4 million in Q4 2024[10]. - Net interest income before credit loss expense increased by 3.1% to $55,092 million[48]. Capital and Equity - Stockholders' equity increased to $751.5 million as of March 31, 2025, up $19.3 million from $732.2 million at December 31, 2024, driven by $9.5 million in net income and a decrease in unrealized losses[26]. - The preliminary common equity tier 1 capital ratio was 12.13% at March 31, 2025, compared to 12.11% at the end of the prior quarter, indicating a slight improvement in capital strength[27]. - The tangible common stockholders' equity was $740.5 million, or 9.59% of tangible assets, up from $721.1 million, or 9.41% of tangible assets, at the end of the prior quarter[26]. - The total stockholders' equity increased by 2.6% to $751,485,000 as of March 31, 2025, from $732,174,000 in December 2024[46]. Operational Highlights - The company opened a new branch in the Atlanta region, contributing to deposit growth and overall positive momentum[4]. - The company operates 32 full-service branches and eight loan production offices across multiple states, focusing on real estate and commercial lending[41]. - Average interest-earning assets were $7,383,443 thousand, reflecting a 0.8% increase from Q4-24[12]. - Average interest-bearing liabilities increased to $4,772,101 thousand, a 3.0% increase from Q4-24[14]. - Average interest-bearing deposits rose to $4,461,939 thousand, a 2.3% increase from Q4-24[12].

Core Viewpoint - Hanmi Financial Corporation reported stable financial performance in Q1 2025, with net income remaining unchanged from the previous quarter, reflecting solid operating results across all business lines and effective expense management [2][3][7]. Financial Performance - Net income for Q1 2025 was $17.7 million, or $0.58 per diluted share, consistent with Q4 2024 [2][7]. - Return on average assets increased to 0.94% from 0.93% in Q4 2024, while return on average equity rose to 8.92% from 8.89% [2][8]. - Net interest income increased by 3.1% to $55.1 million compared to $53.4 million in Q4 2024, driven by lower funding costs and an expanding net interest margin [9][10]. Loan and Deposit Growth - Loans receivable reached $6.28 billion, up 0.5% from Q4 2024, with loan production for Q1 at $345.9 million [7][19]. - Deposits increased by 2.9% to $6.62 billion, supported by new commercial accounts and contributions from newly opened branches [3][7]. - Noninterest-bearing demand deposits constituted 31.2% of total deposits as of March 31, 2025 [7]. Credit Quality and Expenses - Credit loss expense for Q1 was $2.7 million, up from $0.9 million in the previous quarter, with an allowance for credit losses of $70.6 million, or 1.12% of loans [14][19]. - Noninterest expense rose to $35.0 million, primarily due to seasonal increases in salaries and benefits, although overall operating expenses showed a decrease when excluding one-time gains from the previous quarter [15][17]. Noninterest Income - Noninterest income increased by 5.0% to $7.7 million, driven by a significant rise in gains from the sale of SBA loans, which totaled $2.0 million for Q1 2025 [15][16]. - The volume of SBA loans sold increased to $32.2 million from $21.6 million in the previous quarter [15]. Efficiency and Margin - The efficiency ratio improved to 55.7% from 56.8% in Q4 2024, indicating better cost management relative to income [15][17]. - The net interest margin increased by 11 basis points to 3.02%, reflecting a decrease in the cost of interest-bearing deposits [9][12].

Wall Street expects a year-over-year increase in earnings on higher revenues when Hanmi Financial (HAFC) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on April 22, 2025, might help the stock move higher if these key numbers are better than e ...

LOS ANGELES, April 11, 2025 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ:HAFC) ("Hanmi"), the holding company for Hanmi Bank, today announced that it will report first quarter 2025 financial results after the market close on Tuesday, April 22, 2025. Management will host a conference call that same day, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss the results. Investment professionals and all current and prospective shareholders are invited to access the live call on April 22 by d ...