Hanmi Reports 2024 First Quarter Results

Rhea-AI Summary

Hanmi Financial (HAFC) reported a net income of $15.2 million for the first quarter of 2024, with a return on average assets of 0.81% and return on average equity of 7.90%. The bank highlighted a focus on diversifying its loan portfolio and deposit franchise, resulting in an increase in deposits and a growth in the C&I portfolio. Despite a decline in net income compared to the previous quarter, Hanmi remains optimistic about its strong balance sheet, credit quality, and capital ratios. The bank plans to optimize its branch network and enter new markets in the upcoming year.

Positive

• Net income for the first quarter of 2024 was $15.2 million, with a return on average assets of 0.81% and return on average equity of 7.90%.
• Hanmi focused on diversifying its loan portfolio and deposit franchise, leading to a 6% annualized increase in deposits and a nearly 4% net increase in the C&I portfolio.
• Despite a decline in net income compared to the previous quarter, Hanmi emphasized its solid balance sheet, credit quality, and capital ratios.
• The bank plans to optimize its branch network through consolidation and entering new markets in the future.

Negative

• None.

Insights

Financial Analyst

Upon reviewing the recent performance of Hanmi Financial Corporation, a decline in net income from $18.6 million to $15.2 million stands out as a noteworthy change. Despite the dip, the figures suggest a controlled adjustment rather than a volatile swing, attributable to strategic choices in their lending practices and an increase in noninterest expenses. Particularly intriguing is the 6% annualized increase in deposits and the nearly 4% net increase in the commercial and industrial (C&I) portfolio, indicating an expansion in Hanmi's business operations and potential for future growth.

From a fiscal perspective, the shift to a credit loss expense in Q1 from a recovery in Q4 of the previous year raises questions about the banking environment and Hanmi’s risk management. The increased cost of interest-bearing deposits, climbing by 33 basis points, also reflects the broader economic landscape of rising interest rates. However, the steady loan portfolio and a healthy loan pipeline position Hanmi to capitalize on lending opportunities, albeit within a cautious credit market.

Investors should note the company's sustained asset quality, with reduced nonperforming assets and low net charge-offs, which are positive signals of the company's financial health. The net interest margin compression, a standard measure of banking profitability, should be monitored as it has decreased by 14 basis points. This metric gauges the difference between the interest income generated by banks and the amount of interest paid out to lenders, reflecting the efficiency of the bank's investment decisions.

Market Research Analyst

An increase in noninterest income, particularly from the sale of residential mortgage loans and higher trade finance and remittance fees, is a bright spot that highlights Hanmi's diversification efforts. The financial sector investors would be keen on this aspect as it may indicate both resilience to interest rate fluctuations and an ability to leverage other revenue streams.

The strategic actions mentioned by CEO Bonnie Lee, specifically, optimizing the branch network and market expansion, reflect a forward-looking approach that aims to streamline operations while seeking new growth avenues. This kind of proactive management is often looked upon favorably by market analysts, as it demonstrates agility and adaptability—key characteristics in the fast-changing financial industry landscape.

Given Hanmi's focus on relationship banking, the effectiveness of their customer attraction and retention strategies becomes critical. The annualized 6% increase in deposits indicates that Hanmi's customer-centric approach might be paying dividends. For retail investors, this could suggest potential for sustained organic growth and a robust customer base that can support revenue streams in a challenging economic environment.

LOS ANGELES, April 23, 2024 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the first quarter of 2024.

Net income for the first quarter of 2024 was $15.2 million, or $0.50 per diluted share, compared with $18.6 million, or $0.61 per diluted share, for the fourth quarter of 2023. The return on average assets for the first quarter was 0.81% and the return on average equity was 7.90%, compared with a return on average assets of 0.99% and the return on average equity of 9.70% for the fourth quarter of 2023.

CEO Commentary
“Our first quarter performance highlights the continued execution of our strategy of diversifying our loan portfolio and deposit franchise,” said Bonnie Lee, President and Chief Executive Officer of Hanmi. “Our relationship banking model enabled us to attract new customers, expanding our market share and driving a 6% annualized increase in deposits and a nearly 4% net increase in our C&I portfolio in the first quarter. We remained disciplined and selective in our underwriting practices, which have resulted in excellent asset quality.”

“The Hanmi franchise is robust and well positioned to successfully navigate a dynamic economic environment. Our balance sheet is solid with ample liquidity, and we have strong credit quality and excellent capital ratios. Furthermore, we have a healthy loan pipeline, stable core deposits, and well-managed expenses. Looking ahead, we will continue to optimize our branch network through a consolidation of existing offices and by entering new markets this year. I am grateful to our team of highly skilled bankers who continually build enduring banking relationships with our customers and create value for our shareholders.”

First Quarter 2024 Highlights:        

• First quarter net income was $15.2 million, or $0.50 per diluted share, compared with $18.6 million, or $0.61 per diluted share for the fourth quarter of 2023. The decline in net income reflects the change to a credit loss expense for the first quarter from a recovery during the fourth quarter of 2023, lower net interest income, and higher noninterest expense, partially offset by higher noninterest income.
• Loans receivable were $6.18 billion at March 31, 2024, essentially unchanged from the end of the fourth quarter of 2023; loan production for the first quarter was $234.0 million with a weighted average interest rate of 8.02%.
• Deposits were $6.38 billion at March 31, 2024, up 1.5% from the end of the fourth quarter of 2023; noninterest-bearing demand deposits were 30.3% of total deposits at the end of the first quarter.
• Net interest income for the first quarter was $50.7 million, down $2.4 million, or 4.7%, from the fourth quarter of 2023, and net interest margin (taxable equivalent) was 2.78% for the first quarter, down 14 basis points; the average yield on loans increased 12 basis points while the cost of interest-bearing deposits increased 33 basis points.

• Noninterest income for the first quarter was $7.7 million, up $1.1 million, or 15.8%, from the fourth quarter of 2023, primarily reflecting a $0.4 million gain on the sale of residential mortgage loans, a $0.3 million valuation adjustment to bank-owned life insurance in the fourth quarter of 2023, and higher trade finance and remittance fees of $0.2 million.

• Noninterest expenses were $36.4 million for the first quarter, up $1.2 million, or 3.5%, from the fourth quarter of 2023, primarily reflecting an increase in salaries and benefits, partially offset by declines in nearly all other expense categories.

• Asset quality remained favorable with criticized loans declining 11.1% from the year-end 2023 to $86.0 million, or 1.4% of loans. Nonperforming assets declined 9.3% to $14.1 million, or 0.19% of total assets, and net charge offs were low at $1.6 million, or 0.10% of average loans (annualized).

For more information about Hanmi, please see the Q1 2024 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)

	As of or for the Three Months Ended																				Amount Change
	March 31,				December 31,				September 30,				June 30,				March 31,				Q1-24				Q1-24
	2024				2023				2023				2023				2023				vs. Q4-23				vs. Q1-23
Net income	$	15,164			$	18,633			$	18,796			$	20,620			$	21,991			$	(3,469	)		$	(6,827	)
Net income per diluted common share	$	0.50			$	0.61			$	0.62			$	0.67			$	0.72			$	(0.11	)		$	(0.22	)
Assets	$	7,512,046			$	7,570,341			$	7,350,140			$	7,344,924			$	7,434,130			$	(58,295	)		$	77,916
Loans receivable	$	6,177,840			$	6,182,434			$	6,020,785			$	5,965,171			$	5,980,458			$	(4,594	)		$	197,382
Deposits	$	6,376,060			$	6,280,574			$	6,260,072			$	6,315,768			$	6,201,038			$	95,486			$	175,022
Return on average assets		0.81	%			0.99	%			1.00	%			1.12	%			1.21	%			-0.18				-0.40
Return on average stockholders' equity		7.90	%			9.70	%			9.88	%			11.14	%			12.19	%			-1.80				-4.29
Net interest margin		2.78	%			2.92	%			3.03	%			3.11	%			3.28	%			-0.14				-0.50
Efficiency ratio (1)		62.42	%			58.86	%			51.82	%			54.11	%			49.54	%			3.56				12.88
Tangible common equity to tangible assets (2)		9.23	%			9.14	%			8.89	%			8.96	%			8.77	%			0.09				0.46
Tangible common equity per common share (2)	$	22.86			$	22.75			$	21.45			$	21.56			$	21.30				0.11				1.56
(1)       Noninterest expense divided by net interest income plus noninterest income.
(2)       Refer to "Non-GAAP Financial Measures" for further details.

Results of Operations
Net interest income for the first quarter decreased $2.4 million to $50.7 million from $53.1 million for the fourth quarter of 2023, down 4.7%. The decrease was primarily due to an increase in the cost of interest-bearing deposits, partially offset by an increase in interest-earning asset yields. The cost of interest-bearing deposits increased 33 basis points to 4.16% for the first quarter of 2024, from 3.83% for the fourth quarter of 2023. The increase in the cost of interest-bearing deposits was due to higher market interest rates and higher average balances. Average interest-bearing deposits were $4.41 billion for the first quarter, up 5.6% from $4.17 billion for the fourth quarter of 2023. The yield on average loans for the first quarter increased 12 basis points to 6.00%, from 5.88% for the fourth quarter of 2023. Average loans were $6.14 billion for the first quarter, up 1.1% from $6.07 billion for the fourth quarter of 2023. First quarter loan prepayment fees were $0.2 million, compared to $0.1 million for the fourth quarter of 2023. Net interest margin (taxable-equivalent) for the first quarter was 2.78%, compared with 2.92% for the fourth quarter of 2023.

	As of or For the Three Months Ended (in thousands)																				Percentage Change
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,				Q1-24				Q1-24
Net Interest Income	2024				2023				2023				2023				2023				vs. Q4-23				vs. Q1-23
Interest and fees on loans receivable(1)	$	91,674			$	89,922			$	85,398			$	83,567			$	80,923				1.9	%			13.3	%
Interest on securities		4,955				4,583				4,204				4,126				4,025				8.1	%			23.1	%
Dividends on FHLB stock		361				341				317				283				289				5.9	%			24.9	%
Interest on deposits in other banks		2,604				2,337				4,153				2,794				2,066				11.4	%			26.0	%
Total interest and dividend income	$	99,594			$	97,183			$	94,072			$	90,770			$	87,303				2.5	%			14.1	%
Interest on deposits		45,638				40,277				36,818				32,115				25,498				13.3	%			79.0	%
Interest on borrowings		1,655				2,112				753				1,633				2,369				-21.6	%			-30.1	%
Interest on subordinated debentures		1,646				1,654				1,646				1,600				1,583				-0.5	%			4.0	%
Total interest expense		48,939				44,043				39,217				35,348				29,450				11.1	%			66.2	%
Net interest income	$	50,655			$	53,140			$	54,855			$	55,422			$	57,853				-4.7	%			-12.4	%
(1)       Includes loans held for sale.
	For the Three Months Ended (in thousands)																				Percentage Change
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,				Q1-24				Q1-24
Average Earning Assets and Interest-bearing Liabilities	2024				2023				2023				2023				2023				vs. Q4-23				vs. Q1-23
Loans receivable (1)	$	6,137,888			$	6,071,644			$	5,915,423			$	5,941,071			$	5,944,399				1.1	%			3.3	%
Securities		969,520				961,551				955,473				971,531				980,712				0.8	%			-1.1	%
FHLB stock		16,385				16,385				16,385				16,385				16,385				0.0	%			0.0	%
Interest-bearing deposits in other banks		201,724				181,140				317,498				230,974				192,902				11.4	%			4.6	%
Average interest-earning assets	$	7,325,517			$	7,230,720			$	7,204,779			$	7,159,961			$	7,134,398				1.3	%			2.7	%
Demand: interest-bearing	$	86,401			$	86,679			$	94,703			$	99,057			$	109,391				-0.3	%			-21.0	%
Money market and savings		1,815,085				1,669,973				1,601,826				1,463,304				1,453,569				8.7	%			24.9	%
Time deposits		2,507,830				2,417,803				2,438,112				2,403,685				2,223,615				3.7	%			12.8	%
Average interest-bearing deposits		4,409,316				4,174,455				4,134,641				3,966,046				3,786,575				5.6	%			16.4	%
Borrowings		162,418				205,951				120,381				196,776				268,056				-21.1	%			-39.4	%
Subordinated debentures		130,088				129,933				129,780				129,631				129,483				0.1	%			0.5	%
Average interest-bearing liabilities	$	4,701,822			$	4,510,339			$	4,384,802			$	4,292,453			$	4,184,114				4.2	%			12.4	%
Average Noninterest Bearing Deposits
Demand deposits - noninterest bearing	$	1,921,189			$	2,025,212			$	2,136,156			$	2,213,171			$	2,324,413				-5.1	%			-17.3	%
(1)       Includes loans held for sale.
	For the Three Months Ended																				Yield/Rate Change
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,				Q1-24				Q1-24
Average Yields and Rates	2024				2023				2023				2023				2023				vs. Q4-23				vs. Q1-23
Loans receivable(1)		6.00	%			5.88	%			5.73	%			5.64	%			5.51	%			0.12				0.49
Securities (2)		2.07	%			1.93	%			1.79	%			1.73	%			1.67	%			0.14				0.40
FHLB stock		8.87	%			8.25	%			7.67	%			6.92	%			7.16	%			0.62				1.71
Interest-bearing deposits in other banks		5.19	%			5.12	%			5.19	%			4.85	%			4.34	%			0.07				0.85
Interest-earning assets		5.47	%			5.34	%			5.19	%			5.09	%			4.96	%			0.13				0.51
Interest-bearing deposits		4.16	%			3.83	%			3.53	%			3.25	%			2.73	%			0.33				1.43
Borrowings		4.10	%			4.07	%			2.48	%			3.33	%			3.58	%			0.03				0.51
Subordinated debentures		5.06	%			5.09	%			5.07	%			4.94	%			4.89	%			-0.03				0.17
Interest-bearing liabilities		4.19	%			3.88	%			3.55	%			3.30	%			2.85	%			0.31				1.34
Net interest margin (taxable equivalent basis)		2.78	%			2.92	%			3.03	%			3.11	%			3.28	%			-0.14				-0.50
Cost of deposits		2.90	%			2.58	%			2.33	%			2.08	%			1.69	%			0.32				1.21
(1)       Includes loans held for sale.
(2)       Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.

Credit loss expense for the first quarter was $0.2 million, compared to a credit loss recovery of $2.9 million for the fourth quarter of 2023. First quarter credit loss expense included a $0.4 million credit loss expense for loan losses, offset by a $0.2 million recovery for off-balance sheet items. First quarter net loan charge-offs were $1.6 million, compared to fourth quarter of 2023 net loan recoveries of $5.0 million that included a $6.0 million recovery from a 2019 troubled loan relationship.

Noninterest income for the first quarter increased $1.1 million to $7.7 million, or 15.8%, from $6.7 million for the fourth quarter of 2023. The increase primarily reflected a $0.4 million gain on sale of residential mortgage loans, a $0.3 million valuation adjustment to bank-owned life insurance in the fourth quarter of 2023, and a $0.2 million increase in trade finance and other service charges and fees. Additionally, gains on sales of SBA loans remained stable at $1.5 million. The volume of SBA loans sold in the first quarter decreased to $25.6 million, from $29.9 million for the fourth quarter of 2023, while trade premiums increased to 7.23% for the first quarter, from 6.17% for the fourth quarter of 2023.

	For the Three Months Ended (in thousands)																				Percentage Change
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,				Q1-24				Q1-24
Noninterest Income	2024				2023				2023				2023				2023				vs. Q4-23				vs. Q1-23
Service charges on deposit accounts	$	2,450			$	2,391			$	2,605			$	2,571			$	2,579				2.5	%			-5.0	%
Trade finance and other service charges and fees		1,414				1,245				1,155				1,173				1,258				13.6	%			12.4	%
Servicing income		712				772				838				825				742				-7.8	%			-4.0	%
Bank-owned life insurance income (expense)		304				(29	)			280				271				270				1148.3	%			12.6	%
All other operating income		928				853				1,178				1,811				1,618				8.8	%			-42.6	%
Service charges, fees & other		5,808				5,232				6,056				6,651				6,467				11.0	%			-10.2	%
Gain on sale of SBA loans		1,482				1,448				1,172				1,212				1,869				2.3	%			-20.7	%
Gain on sale of mortgage loans		443				-				-				-				-				0.0	%			0.0	%
Net gain (loss) on sales of securities		-				-				-				(1,871	)			-				0.0	%			0.0	%
Gain (loss) on sale of bank premises		-				-				4,000				-				-				0.0	%			0.0	%
Legal settlement		-				-				-				1,943				-				0.0	%			0.0	%
Total noninterest income	$	7,733			$	6,680			$	11,228			$	7,935			$	8,336				15.8	%			-7.2	%

Noninterest expense for the first quarter increased by $1.2 million to $36.4 million from $35.2 million for the fourth quarter of 2023. The increase was primarily due to a $1.5 million increase in salaries and benefits due to seasonally higher employer taxes and benefits of $1.4 million. All other categories of noninterest expense combined, except for data processing, decreased $0.3 million in the first quarter from the fourth quarter of 2023. Data processing increased by less than $0.1 million. The efficiency ratio for the first quarter was 62.42%, compared with 58.86% for the fourth quarter of 2023, primarily due to the lower revenue and higher expenses.

	For the Three Months Ended (in thousands)																				Percentage Change
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,				Q1-24				Q1-24
	2024				2023				2023				2023				2023				vs. Q4-23				vs. Q1-23
Noninterest Expense
Salaries and employee benefits	$	21,585			$	20,062			$	20,361			$	20,365			$	20,610				7.6	%			4.7	%
Occupancy and equipment		4,537				4,604				4,825				4,500				4,412				-1.5	%			2.8	%
Data processing		3,551				3,487				3,490				3,465				3,253				1.8	%			9.2	%
Professional fees		1,893				1,977				1,568				1,376				1,335				-4.2	%			41.8	%
Supplies and communication		601				613				552				638				676				-2.0	%			-11.1	%
Advertising and promotion		907				990				534				748				833				-8.4	%			8.9	%
All other operating expenses		3,160				3,252				2,852				3,243				1,957				-2.8	%			61.5	%
Subtotal		36,234				34,985				34,182				34,335				33,076				3.6	%			9.5	%
Other real estate owned expense (income)		22				15				16				4				(201	)			46.7	%			-110.9	%
Repossessed personal property expense (income)		189				211				47				(59	)			(84	)			-10.4	%			-325.0	%
Total noninterest expense	$	36,445			$	35,211			$	34,245			$	34,280			$	32,791				3.5	%			11.1	%

Hanmi recorded a provision for income taxes of $6.6 million for the first quarter of 2024, compared with $8.8 million for the fourth quarter of 2023, representing an effective tax rate of 30.2% and 32.2%, respectively for each period. The 2024 first quarter provision included a $0.2 million charge for share-based compensation vesting and $0.2 million additional expense associated with amended state tax returns. The fourth quarter 2023 income tax expense included a $0.6 million charge to increase the valuation allowance on state net operating loss carryforwards.

Financial Position
Total assets at March 31, 2024 decreased 0.8%, or $58.3 million, to $7.51 billion from $7.57 billion at December 31, 2023. The sequential quarter decrease reflected a 15.3%, or $46.3 million, decrease in cash and due from banks, and an $8.0 million decrease in loans held for sale. The decrease in cash and $95.5 million increase in deposits supported a $152.5 million reduction in borrowings.

Loans receivable, before allowance for credit losses, were $6.18 billion at March 31, 2024, consistent with December 31, 2023. Loans held for sale, representing the guaranteed portion of SBA 7(a) loans, were $4.0 million at the end of the first quarter of 2024, down from $12.0 million at year-end 2023.

	As of (in thousands)																				Percentage Change
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,				Q1-24				Q1-24
	2024				2023				2023				2023				2023				vs. Q4-23				vs. Q1-23
Loan Portfolio
Commercial real estate loans	$	3,878,677			$	3,889,739			$	3,773,015			$	3,738,325			$	3,784,176				-0.3	%			2.5	%
Residential/consumer loans		970,362				962,661				926,326				886,984				817,917				0.8	%			18.6	%
Commercial and industrial loans		774,851				747,819				728,792				753,456				778,149				3.6	%			-0.4	%
Equipment finance		553,950				582,215				592,652				586,406				600,216				-4.9	%			-7.7	%
Loans receivable		6,177,840				6,182,434				6,020,785				5,965,171				5,980,458				-0.1	%			3.3	%
Loans held for sale		3,999				12,013				11,767				7,293				3,652				-66.7	%			9.5	%
Total	$	6,181,839			$	6,194,447			$	6,032,552			$	5,972,464			$	5,984,110				-0.2	%			3.3	%
	As of
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,
	2024				2023				2023				2023				2023
Composition of Loan Portfolio
Commercial real estate loans		62.7	%			62.8	%			62.5	%			62.6	%			63.2	%
Residential/consumer loans		15.7	%			15.5	%			15.4	%			14.9	%			13.7	%
Commercial and industrial loans		12.5	%			12.1	%			12.1	%			12.6	%			13.0	%
Equipment finance		9.0	%			9.4	%			9.8	%			9.8	%			10.0	%
Loans receivable		99.9	%			99.8	%			99.8	%			99.9	%			99.9	%
Loans held for sale		0.1	%			0.2	%			0.2	%			0.1	%			0.1	%
Total		100.0	%			100.0	%			100.0	%			100.0	%			100.0	%

New loan production was $234.0 million for the first quarter of 2024 at an average rate of 8.02%, while $86.3 million of loans paid-off during the quarter at an average rate of 7.60%.

Commercial real estate loan production for the first quarter of 2024 was $60.1 million. Commercial and industrial loan production was $50.8 million, SBA loan production was $30.8 million, equipment finance production was $39.2 million, and residential mortgage loan production was $53.1 million.

	For the Three Months Ended (in thousands)
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,
	2024				2023				2023				2023				2023
New Loan Production
Commercial real estate loans	$	60,085			$	178,157			$	106,151			$	40,989			$	75,528
Commercial and industrial loans		50,789				52,079				67,907				36,322				27,055
SBA loans		30,817				48,432				36,109				30,926				34,472
Equipment finance		39,155				57,334				71,075				50,905				69,307
Residential/consumer loans		53,115				53,465				55,026				100,161				97,201
subtotal		233,961				389,467				336,268				259,303				303,563
Payoffs		(86,250	)			(77,961	)			(62,140	)			(120,609	)			(124,923	)
Amortization		(90,711	)			(106,610	)			(116,411	)			(102,248	)			(102,675	)
Loan sales		(55,321	)			(29,861	)			(22,496	)			(20,933	)			(30,002	)
Net line utilization		(4,150	)			(11,609	)			(70,238	)			(28,092	)			(30,401	)
Charge-offs & OREO		(2,123	)			(1,777	)			(9,369	)			(2,708	)			(2,237	)
Loans receivable-beginning balance		6,182,434				6,020,785				5,965,171				5,980,458				5,967,133
Loans receivable-ending balance	$	6,177,840			$	6,182,434			$	6,020,785			$	5,965,171			$	5,980,458

Deposits were $6.38 billion at the end of the first quarter of 2024, up $95.5 million, or 1.5%, from $6.28 billion at the end of the preceding quarter. Driving the change was a $125.2 million increase in money market and savings deposits and a $40.9 million increase in time deposits, partially offset by a $70.5 million decline in noninterest-bearing demand deposits. Noninterest-bearing demand deposits represented 30.3% of total deposits at March 31, 2024 and the loan-to-deposit ratio was 96.9%.

	As of (in thousands)																				Percentage Change
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,				Q1-24				Q1-24
	2024				2023				2023				2023				2023				vs. Q4-23				vs. Q1-23
Deposit Portfolio
Demand: noninterest-bearing	$	1,933,060			$	2,003,596			$	2,161,238			$	2,206,078			$	2,334,083				-3.5	%			-17.2	%
Demand: interest-bearing		87,374				87,452				88,133				97,076				104,245				-0.1	%			-16.2	%
Money market and savings		1,859,865				1,734,658				1,576,006				1,580,691				1,382,472				7.2	%			34.5	%
Time deposits		2,495,761				2,454,868				2,434,695				2,431,923				2,380,238				1.7	%			4.9	%
Total deposits	$	6,376,060			$	6,280,574			$	6,260,072			$	6,315,768			$	6,201,038				1.5	%			2.8	%
	As of
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,
	2024				2023				2023				2023				2023
Composition of Deposit Portfolio
Demand: noninterest-bearing		30.3	%			31.9	%			34.5	%			34.9	%			37.6	%
Demand: interest-bearing		1.4	%			1.4	%			1.4	%			1.5	%			1.7	%
Money market and savings		29.2	%			27.6	%			25.2	%			25.0	%			22.3	%
Time deposits		39.1	%			39.1	%			38.9	%			38.6	%			38.4	%
Total deposits		100.0	%			100.0	%			100.0	%			100.0	%			100.0	%

Stockholders’ equity at March 31, 2024 was $703.1 million, up $1.2 million from $701.9 million at December 31, 2023. First quarter net income, net of dividends paid, added $7.5 million to stockholders’ equity for the period. This addition was offset by a $3.4 million increase in unrealized after-tax losses on securities available for sale due to changes in interest rates during the first quarter and a $1.6 million increase in unrealized after-tax losses on cash flow hedges. In addition, Hanmi repurchased 100,000 shares of common stock during the quarter at an average share price of $15.92. At March 31, 2024, 309,972 shares remain under Hanmi’s share repurchase program. Tangible common stockholders’ equity was $692.0 million, or 9.23% of tangible assets, at March 31, 2024, compared with $690.8 million, or 9.14% of tangible assets at the end of the fourth quarter of 2023.

Hanmi and the Bank exceeded minimum regulatory capital requirements, and the Bank continues to exceed the minimum for the “well capitalized” category. At March 31, 2024, Hanmi’s preliminary common equity tier 1 capital ratio was 12.05% and its total risk-based capital ratio was 15.20%, compared with 11.86% and 14.95%, respectively, at the end of the fourth quarter of 2023.

	As of																				Ratio Change
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,				Q1-24				Q1-24
	2024				2023				2023				2023				2023				vs. Q4-23				vs. Q1-23
Regulatory Capital ratios (1)
Hanmi Financial
Total risk-based capital		15.20	%			14.95	%			15.07	%			15.11	%			14.80	%			0.25				0.40
Tier 1 risk-based capital		12.40	%			12.20	%			12.30	%			12.25	%			11.94	%			0.20				0.46
Common equity tier 1 capital		12.05	%			11.86	%			11.95	%			11.90	%			11.59	%			0.19				0.46
Tier 1 leverage capital ratio		10.36	%			10.37	%			10.27	%			10.22	%			10.09	%			-0.01				0.27
Hanmi Bank
Total risk-based capital		14.50	%			14.27	%			14.42	%			14.45	%			14.15	%			0.23				0.35
Tier 1 risk-based capital		13.44	%			13.26	%			13.42	%			13.39	%			13.06	%			0.18				0.38
Common equity tier 1 capital		13.44	%			13.26	%			13.42	%			13.39	%			13.06	%			0.18				0.38
Tier 1 leverage capital ratio		11.29	%			11.32	%			11.25	%			11.21	%			11.06	%			-0.03				0.23
(1)       Preliminary ratios for March 31, 2024

Asset Quality
Loans 30 to 89 days past due and still accruing were 0.26% of loans at the end of the first quarter of 2024, compared with 0.17% at the end of the prior quarter.

Criticized loans totaled $86.0 million at the end of the first quarter, down from $96.7 million at the end of the fourth quarter of 2023. Special mention loans were $62.3 million at the end of the first quarter, down from $65.3 million at December 31, 2023. Reductions in special mention loans included upgrades to pass of $1.5 million, paydowns and payoffs of $1.4 million and downgrades of $0.8 million. The quarter-over-quarter change also included increases from downgrades of $0.7 million of pass loans.

Classified loans were $23.7 million at March 31, 2024, down from $31.4 million at the end of the prior quarter. The $7.7 million decrease was primarily driven by payoffs of $7.3 million, charge-offs of $1.9 million, and paydowns and amortization of $2.1 million. New downgrades to classified loans of $3.6 million partially offset the decrease.

Nonperforming loans were $14.0 million at March 31, 2024, down from $15.5 million at the end of the prior quarter. As a percentage of the loan portfolio, nonperforming loans improved to 0.23% at quarter-end, from 0.25% at the end of the fourth quarter of 2023.

Nonperforming assets were $14.1 million at the end of the first quarter of 2024, down from $15.6 million at the end of the prior quarter. As a percentage of total assets, nonperforming assets also improved to 0.19% at quarter-end, from 0.21% at the end of the fourth quarter of 2023.

Gross charge-offs for the first quarter of 2024 were $2.1 million, compared with $1.8 million for the preceding quarter. Recoveries of previously charged-off loans for the first quarter of 2024 were $0.5 million, compared with $6.8 million of recoveries for the prior quarter, which included a $6.0 million recovery from a 2019 troubled loan relationship. As a result, there were net charge-offs of $1.6 million for the first quarter of 2024, compared to net recoveries of $5.0 million for the prior quarter.

The allowance for credit losses was $68.3 million at March 31, 2024, compared with $69.5 million at December 31, 2023. Specific allowances for loans increased $1.9 million while the allowance for quantitative and qualitative considerations decreased $3.1 million. The ratio of the allowance for credit losses to loans was 1.11% at the end of the first quarter, compared with 1.12% at December 31, 2023.

	As of or for the Three Months Ended (in thousands)																				Amount Change
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,				Q1-24				Q1-24
	2024				2023				2023				2023				2023				vs. Q4-23				vs. Q1-23
Asset Quality Data and Ratios
Delinquent loans:
Loans, 30 to 89 days past due and still accruing	$	15,839			$	10,263			$	9,545			$	13,749			$	15,377			$	5,576			$	462
Delinquent loans to total loans		0.26	%			0.17	%			0.16	%			0.23	%			0.26	%			0.09				-0.00
Criticized loans:
Special mention	$	62,317			$	65,314			$	76,473			$	44,632			$	64,340			$	(2,997	)		$	(2,023	)
Classified		23,670				31,367				33,134				38,840				47,288				(7,697	)			(23,618	)
Total criticized loans	$	85,987			$	96,681			$	109,607			$	83,472			$	111,628			$	(10,694	)		$	(25,641	)
Nonperforming assets:
Nonaccrual loans	$	14,025			$	15,474			$	15,783			$	22,178			$	20,050			$	(1,449	)		$	(6,025	)
Loans 90 days or more past due and still accruing		-				-				-				-				-				-				-
Nonperforming loans		14,025				15,474				15,783				22,178				20,050				(1,449	)			(6,025	)
Other real estate owned, net		117				117				117				117				117				-				-
Nonperforming assets*	$	14,142			$	15,591			$	15,900			$	22,295			$	20,167			$	(1,449	)		$	(6,025	)
Nonperforming assets to assets*		0.19	%			0.21	%			0.22	%			0.30	%			0.27	%			-0.02				-0.08
Nonperforming loans to total loans		0.23	%			0.25	%			0.26	%			0.37	%			0.34	%			-0.02				-0.11
* Excludes repossessed personal property of $1.3 million, $1.3 million, $1.3 million, $0.8 million, and $0.6 million as of Q1-24, Q4-23, Q3-23, Q2-23, and Q1-23, respectively
	As of or for the Three Months Ended (in thousands)
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,
	2024				2023				2023				2023				2023
Allowance for credit losses:
Balance at beginning of period	$	69,462			$	67,313			$	71,024			$	72,249			$	71,523
Credit loss expense (recovery) on loans		404				(2,880	)			5,167				514				2,181
Net loan (charge-offs) recoveries		(1,596	)			5,029				(8,878	)			(1,739	)			(1,455	)
Balance at end of period	$	68,270			$	69,462			$	67,313			$	71,024			$	72,249
Net loan charge-offs (recoveries) to average loans (1)		0.10	%			-0.33	%			0.60	%			0.12	%			0.10	%
Allowance for credit losses to loans		1.11	%			1.12	%			1.12	%			1.19	%			1.21	%
Allowance for credit losses related to off-balance sheet items:
Balance at beginning of period	$	2,474			$	2,463			$	2,476			$	3,067			$	3,115
Credit loss expense (recovery) on off-balance sheet items		(177	)			11				(13	)			(591	)			(48	)
Balance at end of period	$	2,297			$	2,474			$	2,463			$	2,476			$	3,067
Unused commitments to extend credit	$	792,769			$	813,960			$	848,886			$	791,818			$	924,371
(1)       Annualized

Corporate Developments
On January 25, 2024, Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2024 first quarter of $0.25 per share. Hanmi paid the dividend on February 22, 2024, to stockholders of record as of the close of business on February 5, 2024.

Earnings Conference Call        
Hanmi Bank will host its first quarter 2024 earnings conference call today, April 23, 2024, 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 35 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 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;
• a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
• the failure to maintain current technologies;
• risks associated with Small Business Administration loans;
• failure to attract or retain key employees;
• our ability to access cost-effective funding;
• changes in liquidity, including the size and composition of our deposit portfolio, including 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;
• the adequacy of and changes in the 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; and
• cyber security and fraud risks against our information technology and those of our third-party providers and vendors.
  

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, 2023, 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) Santarosa
Senior Executive Vice President & Chief Financial Officer
213-427-5636

Lisa Fortuna
Investor Relations
Financial Profiles, Inc.
lfortuna@finprofiles.com
310-622-8251

Hanmi Financial Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)

	March 31,				December 31,				Percentage			March 31,				Percentage
	2024				2023				Change			2023				Change
Assets
Cash and due from banks	$	256,038			$	302,324			-15.3	%		$	386,201			-33.7	%
Securities available for sale, at fair value		872,190				865,739			0.7	%			878,701			-0.7	%
Loans held for sale, at the lower of cost or fair value		3,999				12,013			-66.7	%			3,652			9.5	%
Loans receivable, net of allowance for credit losses		6,109,570				6,112,972			-0.1	%			5,908,209			3.4	%
Accrued interest receivable		23,032				23,371			-1.5	%			19,004			21.2	%
Premises and equipment, net		21,952				21,959			-0.0	%			22,625			-3.0	%
Customers' liability on acceptances		161				625			-74.2	%			41			292.7	%
Servicing assets		6,890				7,070			-2.5	%			7,541			-8.6	%
Goodwill and other intangible assets, net		11,074				11,099			-0.2	%			11,193			-1.1	%
Federal Home Loan Bank ("FHLB") stock, at cost		16,385				16,385			0.0	%			16,385			0.0	%
Bank-owned life insurance		56,639				56,335			0.5	%			55,814			1.5	%
Prepaid expenses and other assets		134,116				140,449			-4.5	%			124,764			7.5	%
Total assets	$	7,512,046			$	7,570,341			-0.8	%		$	7,434,130			1.0	%
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	$	1,933,060			$	2,003,596			-3.5	%		$	2,334,083			-17.2	%
Interest-bearing		4,443,000				4,276,978			3.9	%			3,866,955			14.9	%
Total deposits		6,376,060				6,280,574			1.5	%			6,201,038			2.8	%
Accrued interest payable		38,007				39,306			-3.3	%			20,512			85.3	%
Bank's liability on acceptances		161				625			-74.2	%			41			292.7	%
Borrowings		172,500				325,000			-46.9	%			350,000			-50.7	%
Subordinated debentures		130,165				130,012			0.1	%			129,558			0.5	%
Accrued expenses and other liabilities		92,053				92,933			-0.9	%			70,816			30.0	%
Total liabilities		6,808,946				6,868,450			-0.9	%			6,771,965			0.5	%
Stockholders' equity:
Common stock		34				34			0.0	%			33			3.0	%
Additional paid-in capital		587,687				586,912			0.1	%			584,884			0.5	%
Accumulated other comprehensive income		(76,890	)			(71,928	)		-6.9	%			(79,059	)		2.7	%
Retained earnings		326,526				319,048			2.3	%			283,910			15.0	%
Less treasury stock		(134,257	)			(132,175	)		-1.6	%			(127,603	)		-5.2	%
Total stockholders' equity		703,100				701,891			0.2	%			662,165			6.2	%
Total liabilities and stockholders' equity	$	7,512,046			$	7,570,341			-0.8	%		$	7,434,130			1.0	%

Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except share and per share data)

	Three Months Ended
	March 31,			December 31,				Percentage			March 31,			Percentage
	2024			2023				Change			2023			Change
Interest and dividend income:
Interest and fees on loans receivable	$	91,674		$	89,922			1.9	%		$	80,923		13.3	%
Interest on securities		4,955			4,583			8.1	%			4,025		23.1	%
Dividends on FHLB stock		361			341			5.9	%			289		24.9	%
Interest on deposits in other banks		2,604			2,337			11.4	%			2,066		26.0	%
Total interest and dividend income		99,594			97,183			2.5	%			87,303		14.1	%
Interest expense:
Interest on deposits		45,638			40,277			13.3	%			25,498		79.0	%
Interest on borrowings		1,655			2,112			-21.6	%			2,369		-30.1	%
Interest on subordinated debentures		1,646			1,654			-0.5	%			1,583		4.0	%
Total interest expense		48,939			44,043			11.1	%			29,450		66.2	%
Net interest income before credit loss expense		50,655			53,140			-4.7	%			57,853		-12.4	%
Credit loss expense (recovery)		227			(2,870	)		-107.9	%			2,133		-89.4	%
Net interest income after credit loss expense		50,428			56,010			-10.0	%			55,720		-9.5	%
Noninterest income:
Service charges on deposit accounts		2,450			2,391			2.5	%			2,579		-5.0	%
Trade finance and other service charges and fees		1,414			1,245			13.6	%			1,258		12.4	%
Gain on sale of Small Business Administration ("SBA") loans		1,482			1,448			2.3	%			1,869		-20.7	%
Other operating income		2,387			1,596			49.6	%			2,630		-9.2	%
Total noninterest income		7,733			6,680			15.8	%			8,336		-7.2	%
Noninterest expense:
Salaries and employee benefits		21,585			20,062			7.6	%			20,610		4.7	%
Occupancy and equipment		4,537			4,604			-1.5	%			4,412		2.8	%
Data processing		3,551			3,487			1.8	%			3,253		9.2	%
Professional fees		1,893			1,977			-4.2	%			1,335		41.8	%
Supplies and communications		601			613			-2.0	%			676		-11.1	%
Advertising and promotion		907			990			-8.4	%			833		8.9	%
Other operating expenses		3,371			3,478			-3.1	%			1,672		101.6	%
Total noninterest expense		36,445			35,211			3.5	%			32,791		11.1	%
Income before tax		21,716			27,479			-21.0	%			31,265		-30.5	%
Income tax expense		6,552			8,846			-25.9	%			9,274		-29.4	%
Net income	$	15,164		$	18,633			-18.6	%		$	21,991		-31.0	%
Basic earnings per share:	$	0.50		$	0.61						$	0.72
Diluted earnings per share:	$	0.50		$	0.61						$	0.72
Weighted-average shares outstanding:
Basic		30,119,646			30,189,578							30,347,325
Diluted		30,119,646			30,251,315							30,430,745
Common shares outstanding		30,276,358			30,368,655							30,555,287

Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
(Dollars in thousands)

	Three Months Ended
	March 31, 2024									December 31, 2023									March 31, 2023
					Interest		Average							Interest		Average							Interest		Average
	Average				Income /		Yield /			Average				Income /		Yield /			Average				Income /		Yield /
	Balance				Expense		Rate			Balance				Expense		Rate			Balance				Expense		Rate
Assets
Interest-earning assets:
Loans receivable (1)	$	6,137,888			$	91,674	6.00	%		$	6,071,644			$	89,922	5.88	%		$	5,944,399			$	80,923	5.51	%
Securities (2)		969,520				4,955	2.07	%			961,551				4,582	1.93	%			980,712				4,025	1.67	%
FHLB stock		16,385				361	8.87	%			16,385				341	8.25	%			16,385				289	7.16	%
Interest-bearing deposits in other banks		201,724				2,604	5.19	%			181,140				2,338	5.12	%			192,902				2,066	4.34	%
Total interest-earning assets		7,325,517				99,594	5.47	%			7,230,720				97,183	5.34	%			7,134,398				87,303	4.96	%
Noninterest-earning assets:
Cash and due from banks		58,382									61,146									65,088
Allowance for credit losses		(69,106	)								(68,319	)								(71,452	)
Other assets		244,700									251,660									239,121
Total assets	$	7,559,493								$	7,475,207								$	7,367,155
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	86,401			$	30	0.14	%		$	86,679			$	29	0.13	%		$	109,391			$	29	0.11	%
Money market and savings		1,815,085				16,553	3.67	%			1,669,973				14,379	3.42	%			1,453,569				7,315	2.04	%
Time deposits		2,507,830				29,055	4.66	%			2,417,803				25,869	4.24	%			2,223,615				18,154	3.31	%
Total interest-bearing deposits		4,409,316				45,638	4.16	%			4,174,455				40,277	3.83	%			3,786,575				25,498	2.73	%
Borrowings		162,418				1,655	4.10	%			205,951				2,113	4.07	%			268,056				2,369	3.58	%
Subordinated debentures		130,088				1,646	5.06	%			129,933				1,653	5.09	%			129,483				1,583	4.89	%
Total interest-bearing liabilities		4,701,822				48,939	4.19	%			4,510,339				44,043	3.88	%			4,184,114				29,450	2.85	%
Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,921,189									2,025,212									2,324,413
Other liabilities		164,524									177,321									127,112
Stockholders' equity		771,958									762,335									731,516
Total liabilities and stockholders' equity	$	7,559,493								$	7,475,207								$	7,367,155
Net interest income (tax equivalent basis)					$	50,655								$	53,140								$	57,853
Cost of deposits							2.90	%								2.58	%								1.69	%
Net interest spread (taxable equivalent basis)							1.28	%								1.47	%								2.10	%
Net interest margin (taxable equivalent basis)							2.78	%								2.92	%								3.28	%
(1)    Includes average loans held for sale
(2)    Income calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.

Non-GAAP Financial Measures

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. This disclosure 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.

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)

	March 31,				December 31,				September 30,				June 30,				March 31,
Hanmi Financial Corporation	2024				2023				2023				2023				2023
Assets	$	7,512,046			$	7,570,341			$	7,350,140			$	7,344,924			$	7,434,130
Less goodwill and other intangible assets		(11,074	)			(11,099	)			(11,131	)			(11,162	)			(11,193	)
Tangible assets	$	7,500,972			$	7,559,242			$	7,339,009			$	7,333,762			$	7,422,937
Stockholders' equity (1)	$	703,100			$	701,891			$	663,359			$	668,560			$	662,165
Less goodwill and other intangible assets		(11,074	)			(11,099	)			(11,131	)			(11,162	)			(11,193	)
Tangible stockholders' equity (1)	$	692,026			$	690,792			$	652,228			$	657,398			$	650,972
Stockholders' equity to assets		9.36	%			9.27	%			9.03	%			9.10	%			8.91	%
Tangible common equity to tangible assets (1)		9.23	%			9.14	%			8.89	%			8.96	%			8.77	%
Common shares outstanding		30,276,358				30,368,655				30,410,582				30,485,788				30,555,287
Tangible common equity per common share	$	22.86			$	22.75			$	21.45			$	21.56			$	21.30
(1)       There were no preferred shares outstanding at the periods indicated.

FAQ

What was Hanmi Financial 's net income for the first quarter of 2024?

Hanmi Financial reported a net income of $15.2 million for the first quarter of 2024.

What were the return on average assets and return on average equity for Hanmi Financial in the first quarter of 2024?

The return on average assets for Hanmi Financial in the first quarter of 2024 was 0.81%, and the return on average equity was 7.90%.

How did Hanmi Financial perform in terms of deposits and loan portfolio in the first quarter of 2024?

Hanmi Financial saw a 6% annualized increase in deposits and a nearly 4% net increase in the C&I portfolio in the first quarter of 2024.

What are Hanmi Financial 's plans for the future based on the first quarter results?

Hanmi Financial plans to optimize its branch network through consolidation and entering new markets in the future.