Hanmi Reports 2025 First Quarter Results

Rhea-AI Summary

Hanmi Financial (NASDAQ: HAFC) reported Q1 2025 net income of $17.7 million, or $0.58 per diluted share, unchanged from Q4 2024. The company achieved a return on average assets of 0.94% and return on average equity of 8.92%.

Key highlights include:

• Net interest margin expanded 11 basis points to 3.02%
• Deposits increased 2.9% to $6.62 billion
• Loans receivable grew 0.5% to $6.28 billion
• Loan production reached $345.9 million with 7.35% weighted average interest rate
• Net interest income rose 3.1% to $55.1 million

Credit quality metrics showed nonperforming loans at $35.6 million (0.57% of loans), while the allowance for credit losses was $70.6 million (1.12% of loans). The efficiency ratio improved to 55.69%, marking the best quarterly performance since Q4 2023.

Positive

• Net interest margin expanded 11 basis points to 3.02%
• Deposits grew 2.9% to $6.62 billion
• Efficiency ratio improved to 55.69%, best since Q4 2023
• Net interest income increased 3.1% to $55.1 million
• Strong loan production of $345.9 million with 7.35% interest rate

Negative

• Credit loss expense increased to $2.7 million from $0.9 million in Q4
• Noninterest-bearing deposits decreased 3.7% quarter-over-quarter
• Net loan charge-offs rose to $1.9 million

Insights

Financial Analyst

Hanmi shows stable quarterly performance with expanding margins and deposit growth, balanced by increased credit costs and classified loans.

Hanmi Financial's Q1 2025 results demonstrate resilient performance with net income holding steady at $17.7 million ($0.58 per share), unchanged from Q4 2024. The bank achieved its third consecutive quarter of net interest margin expansion, with NIM increasing 11 basis points to 3.02%, primarily driven by a 27 basis point reduction in deposit costs to 3.69%.

The balance sheet shows positive momentum with deposits growing 2.9% to $6.62 billion, outpacing the 0.5% loan growth. This deposit expansion was fueled by new commercial relationships and contributions from newly opened branches, reflecting the effectiveness of Hanmi's relationship-based banking model. However, the noninterest-bearing deposit component decreased 3.7% quarter-over-quarter, a potential concern given these are typically the most valuable deposit types.

Credit quality metrics present a mixed picture. While nonperforming loans remain manageable at 0.57% of total loans, credit loss expense increased to $2.7 million from $0.9 million in Q4 2024. Though overall criticized loans decreased, classified loans increased to $46.5 million, suggesting potential credit stress in certain segments.

Operational efficiency improved substantially, with the efficiency ratio reaching 55.69%, the best level since Q4 2023. This contributed to a 5.9% increase in preprovision net revenues. SBA loan sales showed strength with $32.2 million sold in Q1 (up from $21.6 million), though at slightly lower premiums.

The bank's capital position continues to strengthen, with tangible common equity to tangible assets rising to 9.59% from 9.41%. This improved capital buffer provides additional flexibility in navigating economic uncertainties while supporting future growth initiatives.

LOS ANGELES, April 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 first quarter of 2025.

Net income for the first quarter of 2025 was $17.7 million, or $0.58 per diluted share, unchanged from the fourth quarter of 2024. The return on average assets for the first quarter of 2025 was 0.94% and the return on average equity was 8.92%, compared with a return on average assets of 0.93% and a return on average equity of 8.89% for the fourth quarter of 2024.

CEO Commentary
“Our team delivered strong results in the first quarter with solid operating performance across all of our business lines,” said Bonnie Lee, President and Chief Executive Officer. “We achieved our third consecutive quarter of net interest margin expansion, up 11 basis points to 3.02%, primarily driven by lower funding costs.”

“Deposits increased 3% driven by new commercial accounts and contributions from our newly opened branches, a testament to our core relationship-based banking model. Loan production was solid, fueled by healthy originations in residential mortgages and our SBA business. Importantly, we maintained our strong credit quality, and continued to effectively manage our operating expenses, resulting in our best quarterly efficiency ratio since the fourth quarter of 2023.”

“Overall, our first quarter results were well-balanced and reflected continued growth and positive momentum, including the successful opening of a new branch in the Atlanta region. Despite elevated macroeconomic uncertainty, our team’s focus, discipline, and commitment to providing exceptional service and market leading products positions us well to deliver long-term value to our shareholders.”

First Quarter 2025 Highlights:        

• First quarter net income was $17.7 million, or $0.58 per diluted share, unchanged from fourth quarter of 2024. Preprovision net revenues increased 5.9% from the prior quarter reflecting growth in net interest income, an expanding net interest margin, a solid contribution from fee-based activities, and disciplined expense management.
• Loans receivable were $6.28 billion at March 31, 2025, up 0.5% from the end of the fourth quarter of 2024; loan production for the first quarter was $345.9 million, with a weighted average interest rate of 7.35%, compared with loan production for the fourth quarter of $339.0 million, with a weighted average interest rate of 7.37%.
• Deposits were $6.62 billion at March 31, 2025, up 2.9% from the end of the fourth quarter of 2024; noninterest-bearing demand deposits at March 31, 2025 were 31.2% of total deposits.
• Net interest income for the first quarter was $55.1 million, up 3.1% from the fourth quarter of 2024. Net interest margin (taxable equivalent) increased 11 basis points to 3.02%; the average yield on loans declined two basis points to 5.95%, while the cost of interest-bearing deposits fell 27 basis points to 3.69%.
• Credit loss expense for the first quarter was $2.7 million, an increase from $0.9 million for the prior quarter. The allowance for credit losses increased $0.5 million to $70.6 million at March 31, 2025, or 1.12% of loans. For the first quarter, net loan charge-offs were $1.9 million, or 0.13% of average loans (annualized).
• Nonperforming loans were $35.6 million at March 31, 2025, or 0.57% of loans. Criticized loans decreased to $164.9 million, as special mention loans decreased to $118.4 million, while classified loans increased to $46.5 million.

For more information about Hanmi, please see the Q1 2025 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,				Q1-25				Q1-25
	2025				2024				2024				2024				2024				vs. Q4-24				vs. Q1-24
Net income	$	17,672			$	17,695			$	14,892			$	14,451			$	15,164			$	(23	)		$	2,508
Net income per diluted common share	$	0.58			$	0.58			$	0.49			$	0.48			$	0.50			$	-			$	0.08
Assets	$	7,729,035			$	7,677,925			$	7,712,299			$	7,586,347			$	7,512,046			$	51,110			$	216,989
Loans receivable	$	6,282,189			$	6,251,377			$	6,257,744			$	6,176,359			$	6,177,840			$	30,812			$	104,349
Deposits	$	6,619,475			$	6,435,776			$	6,403,221			$	6,329,340			$	6,376,060			$	183,699			$	243,415
Return on average assets		0.94	%			0.93	%			0.79	%			0.77	%			0.81	%			0.01				0.13
Return on average stockholders' equity		8.92	%			8.89	%			7.55	%			7.50	%			7.90	%			0.03				1.02
Net interest margin		3.02	%			2.91	%			2.74	%			2.69	%			2.78	%			0.11				0.24
Efficiency ratio (1)		55.69	%			56.79	%			59.98	%			62.24	%			62.42	%			-1.10				-6.73
Tangible common equity to tangible assets (2)		9.59	%			9.41	%			9.42	%			9.19	%			9.23	%			0.18				0.36
Tangible common equity per common share (2)	$	24.49			$	23.88			$	24.03			$	22.99			$	22.86				0.61				1.63
(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 was $55.1 million, up 3.1% from $53.4 million for the fourth quarter of 2024. The increase was primarily due to a decrease in deposit interest expense from a decrease in deposit rates. The average rate paid on interest-bearing deposits for the fourth quarter decreased 27 basis points to 3.69% from 3.96% for the fourth quarter of 2024, primarily due to the decrease in the average cost of time deposits to 4.17% for the first quarter from 4.55% for the fourth quarter of 2024. The average balance of interest-bearing deposits increased to $4.46 billion for the first quarter of 2025 from $4.36 billion for the fourth quarter. The average balance of time deposits was $2.35 billion for the first quarter of 2025, essentially unchanged from the fourth quarter. The average balance of noninterest-bearing deposits for the first quarter decreased to $1.90 billion from $1.97 billion for the fourth quarter of 2024. Net interest margin (taxable equivalent) for the first quarter was 3.02%, up 11 basis points from 2.91% for the fourth quarter of 2024.

	For the Three Months Ended (in thousands)																				Percentage Change
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,				Q1-25			Q1-25
Net Interest Income	2025				2024				2024				2024				2024				vs. Q4-24			vs. Q1-24
Interest and fees on loans receivable (1)	$	90,887			$	91,545			$	92,182			$	90,752			$	91,674			-0.7	%		-0.9	%
Interest on securities		6,169				5,866				5,523				5,238				4,955			5.2	%		24.5	%
Dividends on FHLB stock		360				360				356				357				361			0.0	%		-0.3	%
Interest on deposits in other banks		1,841				2,342				2,356				2,313				2,604			-21.4	%		-29.3	%
Total interest and dividend income	$	99,257			$	100,113			$	100,417			$	98,660			$	99,594			-0.9	%		-0.3	%
Interest on deposits		40,559				43,406				47,153				46,495				45,638			-6.6	%		-11.1	%
Interest on borrowings		2,024				1,634				1,561				1,896				1,655			23.9	%		22.3	%
Interest on subordinated debentures		1,582				1,624				1,652				1,649				1,646			-2.6	%		-3.9	%
Total interest expense		44,165				46,664				50,366				50,040				48,939			-5.4	%		-9.8	%
Net interest income	$	55,092			$	53,449			$	50,051			$	48,620			$	50,655			3.1	%		8.8	%
(1) Includes loans held for sale.

	For the Three Months Ended (in thousands)																				Percentage Change
Average Earning Assets and Interest-bearing Liabilities	Mar 31, 2025				Dec 31, 2024				Sep 30, 2024				Jun 30, 2024				Mar 31, 2024				Q1-25 vs. Q4-24			Q1-25 vs. Q1-24
Loans receivable (1)	$	6,189,531			$	6,103,264			$	6,112,324			$	6,089,440			$	6,137,888			1.4	%		0.8	%
Securities		1,001,499				998,313				986,041				979,671				969,520			0.3	%		3.3	%
FHLB stock		16,385				16,385				16,385				16,385				16,385			0.0	%		0.0	%
Interest-bearing deposits in other banks		176,028				204,408				183,027				180,177				201,724			-13.9	%		-12.7	%
Average interest-earning assets	$	7,383,443			$	7,322,370			$	7,297,777			$	7,265,673			$	7,325,517			0.8	%		0.8	%
Demand: interest-bearing	$	79,369			$	79,784			$	83,647			$	85,443			$	86,401			-0.5	%		-8.1	%
Money market and savings		2,037,224				1,934,540				1,885,799				1,845,870				1,815,085			5.3	%		12.2	%
Time deposits		2,345,346				2,346,363				2,427,737				2,453,154				2,507,830			0.0	%		-6.5	%
Average interest-bearing deposits		4,461,939				4,360,687				4,397,183				4,384,467				4,409,316			2.3	%		1.2	%
Borrowings		179,444				141,604				143,479				169,525				162,418			26.7	%		10.5	%
Subordinated debentures		130,718				130,567				130,403				130,239				130,088			0.1	%		0.5	%
Average interest-bearing liabilities	$	4,772,101			$	4,632,858			$	4,671,065			$	4,684,231			$	4,701,822			3.0	%		1.5	%
Average Noninterest Bearing Deposits
Demand deposits - noninterest bearing	$	1,895,953			$	1,967,789			$	1,908,833			$	1,883,765			$	1,921,189			-3.7	%		-1.3	%
(1) Includes loans held for sale.

	For the Three Months Ended															Yield/Rate Change
Average Yields	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,			Q1-25			Q1-25
and Rates	2025			2024			2024			2024			2024			vs. Q4-24			vs. Q1-24
Loans receivable (1)	5.95	%		5.97	%		6.00	%		5.99	%		6.00	%		-0.02			-0.05
Securities (2)	2.49	%		2.38	%		2.27	%		2.17	%		2.07	%		0.11			0.42
FHLB stock	8.92	%		8.75	%		8.65	%		8.77	%		8.87	%		0.17			0.05
Interest-bearing deposits in other banks	4.24	%		4.56	%		5.12	%		5.16	%		5.19	%		-0.32			-0.95
Interest-earning assets	5.45	%		5.45	%		5.48	%		5.46	%		5.47	%		0.00			-0.02
Interest-bearing deposits	3.69	%		3.96	%		4.27	%		4.27	%		4.16	%		-0.27			-0.47
Borrowings	4.57	%		4.59	%		4.33	%		4.50	%		4.10	%		-0.02			0.47
Subordinated debentures	4.84	%		4.97	%		5.07	%		5.07	%		5.06	%		-0.13			-0.22
Interest-bearing liabilities	3.75	%		4.01	%		4.29	%		4.30	%		4.19	%		-0.26			-0.44
Net interest margin (taxable equivalent basis)	3.02	%		2.91	%		2.74	%		2.69	%		2.78	%		0.11			0.24
Cost of deposits	2.59	%		2.73	%		2.97	%		2.98	%		2.90	%		-0.14			-0.31
(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 $2.7 million, compared with $0.9 million for the fourth quarter of 2024. First quarter credit loss expense included a $2.4 million credit loss expense for loan losses and a $0.3 million credit loss expense for off-balance sheet items.

Noninterest income for the first quarter increased $0.3 million, or 5.0%, to $7.7 million from $7.4 million for the fourth quarter of 2024. The increase was primarily due to a $0.6 million increase on gains from the sale of SBA loans. Gains on sales of SBA loans were $2.0 million for the first quarter of 2025, compared with $1.4 million for the fourth quarter of 2024. The volume of SBA loans sold for the first quarter increased to $32.2 million from $21.6 million for the fourth quarter of 2024, while trade premiums were 7.82% for the first quarter of 2025 compared with 8.53% for the fourth quarter. Mortgage loans sold for the first quarter were $10.0 million, with a premium of 2.50%, compared with $18.3 million and 1.96% for the fourth quarter. Gains on mortgage loans sold were $0.2 million for the first quarter, compared with $0.3 million for the fourth quarter.

	For the Three Months Ended (in thousands)																				Percentage Change
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,				Q1-25			Q1-25
Noninterest Income	2025				2024				2024				2024				2024				vs. Q4-24			vs. Q1-24
Service charges on deposit accounts	$	2,217			$	2,192			$	2,311			$	2,429			$	2,450			1.1	%		-9.5	%
Trade finance and other service charges and fees		1,396				1,364				1,254				1,277				1,414			2.3	%		-1.3	%
Servicing income		732				668				817				796				712			9.6	%		2.8	%
Bank-owned life insurance income		309				316				320				638				304			-2.2	%		1.6	%
All other operating income		897				1,037				1,008				908				928			-13.5	%		-3.3	%
Service charges, fees & other		5,551				5,577				5,710				6,048				5,808			-0.5	%		-4.4	%
Gain on sale of SBA loans		2,000				1,443				1,544				1,644				1,482			38.6	%		35.0	%
Gain on sale of mortgage loans		175				337				324				365				443			-48.1	%		-60.5	%
Gain on sale of bank premises		-				-				860				-				-			0.0	%		0.0	%
Total noninterest income	$	7,726			$	7,357			$	8,438			$	8,057			$	7,733			5.0	%		-0.1	%

Noninterest expense for the first quarter increased $0.5 million to $35.0 million from $34.5 million for the fourth quarter of 2024. The increase was primarily due to a $1.6 million gain on the sale of an other-real-estate-owned property in the fourth quarter. Absent this gain, first quarter noninterest expense was down 3.2% sequentially due to decreases in professional fees, advertising and promotion, and other operating expenses, partially offset by a $0.5 million increase in salaries and benefits, which reflected seasonal first quarter increases. All other operating expenses decreased $0.7 million for the first quarter primarily due to the absence of a fourth quarter $0.5 million charge related to an SBA loan acquired in a previous acquisition. The efficiency ratio improved during the first quarter to 55.7%, compared with 56.8% for the fourth quarter of 2024.

	For the Three Months Ended (in thousands)																				Percentage Change
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,				Q1-25			Q1-25
	2025				2024				2024				2024				2024				vs. Q4-24			vs. Q1-24
Noninterest Expense
Salaries and employee benefits	$	20,972			$	20,498			$	20,851			$	20,434			$	21,585			2.3	%		-2.8	%
Occupancy and equipment		4,450				4,503				4,499				4,348				4,537			-1.2	%		-1.9	%
Data processing		3,787				3,800				3,839				3,686				3,551			-0.3	%		6.6	%
Professional fees		1,468				1,821				1,492				1,749				1,893			-19.4	%		-22.5	%
Supplies and communication		517				551				538				570				601			-6.2	%		-14.0	%
Advertising and promotion		585				821				631				669				907			-28.7	%		-35.5	%
All other operating expenses		3,175				3,847				2,875				3,251				3,160			-17.5	%		0.5	%
Subtotal		34,954				35,841				34,725				34,707				36,234			-2.5	%		-3.5	%
Branch consolidation expense		-				-				-				301				-			0.0	%		0.0	%
Other real estate owned expense (income)		41				(1,588	)			77				6				22			102.6	%		86.4	%
Repossessed personal property expense (income)		(11	)			281				278				262				189			-103.9	%		-105.8	%
Total noninterest expense	$	34,984			$	34,534			$	35,080			$	35,276			$	36,445			1.3	%		-4.0	%

Hanmi recorded a provision for income taxes of $7.4 million for the first quarter of 2025, compared with $7.6 million for the fourth quarter of 2024, representing an effective tax rate of 29.6% and 30.1%, respectively.

Financial Position
Total assets at March 31, 2025 increased 0.7%, or $51.1 million, to $7.73 billion from $7.68 billion at December 31, 2024. The increase reflected a $30.4 million increase in loans and a $24.2 million increase in cash, offset partially by a $7.6 million decrease in prepaid expenses and other assets.

Loans receivable, before allowance for credit losses, were $6.28 billion at March 31, 2025, up from $6.25 billion at December 31, 2024.

Loans held-for-sale were $11.8 million at March 31, 2025, up from $8.6 million at December 31, 2024. At the end of the first quarter, loans held-for-sale consisted of the guaranteed portion of SBA 7(a) loans.

	As of (in thousands)																				Percentage Change
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,				Q1-25			Q1-25
	2025				2024				2024				2024				2024				vs. Q4-24			vs. Q1-24
Loan Portfolio
Commercial real estate loans	$	3,975,651			$	3,949,622			$	3,932,088			$	3,888,505			$	3,878,677			0.7	%		2.5	%
Residential/consumer loans		979,536				951,302				939,285				954,209				970,362			3.0	%		0.9	%
Commercial and industrial loans		854,406				863,431				879,092				802,372				774,851			-1.0	%		10.3	%
Equipment finance		472,596				487,022				507,279				531,273				553,950			-3.0	%		-14.7	%
Loans receivable		6,282,189				6,251,377				6,257,744				6,176,359				6,177,840			0.5	%		1.7	%
Loans held for sale		11,831				8,579				54,336				10,467				3,999			37.9	%		195.8	%
Total	$	6,294,020			$	6,259,956			$	6,312,080			$	6,186,826			$	6,181,839			0.5	%		1.8	%

	As of
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
	2025			2024			2024			2024			2024
Composition of Loan Portfolio
Commercial real estate loans	63.1	%		63.1	%		62.3	%		62.9	%		62.7	%
Residential/consumer loans	15.6	%		15.2	%		14.9	%		15.4	%		15.7	%
Commercial and industrial loans	13.6	%		13.8	%		13.9	%		13.0	%		12.5	%
Equipment finance	7.5	%		7.8	%		8.0	%		8.5	%		9.0	%
Loans receivable	99.8	%		99.9	%		99.1	%		99.8	%		99.9	%
Loans held for sale	0.2	%		0.1	%		0.9	%		0.2	%		0.1	%
Total	100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

New loan production was $345.9 million for the first quarter of 2025 with an average rate of 7.35%, while payoffs were $125.1 million during the quarter at an average rate of 6.40%.

Commercial real estate loan production for the first quarter of 2025 was $146.6 million. Commercial and industrial loan production was $42.3 million, SBA loan production was $55.2 million, equipment finance production was $46.7 million, and residential mortgage loan production was $55.0 million.

	For the Three Months Ended (in thousands)
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,
	2025				2024				2024				2024				2024
New Loan Production
Commercial real estate loans	$	146,606			$	146,716			$	110,246			$	87,632			$	60,085
Residential/consumer loans		55,000				40,225				40,758				30,194				53,115
Commercial and industrial loans		42,344				60,159				105,086				59,007				50,789
Equipment finance		46,749				42,168				40,066				42,594				39,155
SBA loans		55,242				49,740				51,616				54,486				30,817
subtotal		345,941				339,008				347,772				273,913				233,961
Payoffs		(125,102	)			(137,933	)			(77,603	)			(148,400	)			(86,250	)
Amortization		(90,743	)			(60,583	)			(151,674	)			(83,640	)			(90,711	)
Loan sales		(42,193	)			(67,852	)			(43,868	)			(42,945	)			(55,321	)
Net line utilization		(53,901	)			(75,651	)			9,426				1,929				(4,150	)
Charge-offs & OREO		(3,190	)			(3,356	)			(2,668	)			(2,338	)			(2,123	)
Loans receivable-beginning balance		6,251,377				6,257,744				6,176,359				6,177,840				6,182,434
Loans receivable-ending balance	$	6,282,189			$	6,251,377			$	6,257,744			$	6,176,359			$	6,177,840

Deposits were $6.62 billion at the end of the first quarter of 2025, up $183.7 million, or 2.9%, from $6.44 billion at the end of the prior quarter. Driving the change was a $140.4 million increase in money market and savings deposits and a $72.8 million increase in time deposits, partially offset by a $30.0 million decrease in noninterest-bearing demand deposits. Noninterest-bearing demand deposits represented 31.2% of total deposits at March 31, 2025 and the loan-to-deposit ratio was 94.9%.

	As of (in thousands)																				Percentage Change
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,				Q1-25			Q1-25
	2025				2024				2024				2024				2024				vs. Q4-24			vs. Q1-24
Deposit Portfolio
Demand: noninterest-bearing	$	2,066,659			$	2,096,634			$	2,051,790			$	1,959,963			$	1,933,060			-1.4	%		6.9	%
Demand: interest-bearing		80,790				80,323				79,287				82,981				87,374			0.6	%		-7.5	%
Money market and savings		2,073,943				1,933,535				1,898,834				1,834,797				1,859,865			7.3	%		11.5	%
Time deposits		2,398,083				2,325,284				2,373,310				2,451,599				2,495,761			3.1	%		-3.9	%
Total deposits	$	6,619,475			$	6,435,776			$	6,403,221			$	6,329,340			$	6,376,060			2.9	%		3.8	%

	As of
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
	2025			2024			2024			2024			2024
Composition of Deposit Portfolio
Demand: noninterest-bearing	31.2	%		32.6	%		32.0	%		31.0	%		30.3	%
Demand: interest-bearing	1.2	%		1.2	%		1.2	%		1.3	%		1.4	%
Money market and savings	31.3	%		30.0	%		29.7	%		29.0	%		29.2	%
Time deposits	36.3	%		36.2	%		37.1	%		38.7	%		39.1	%
Total deposits	100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Stockholders’ equity at March 31, 2025 was $751.5 million, up $19.3 million from $732.2 million at December 31, 2024. The increase included $9.5 million in net income, net of dividends paid, for the first quarter. In addition, the increase in stockholders' equity included a $10.4 million decrease in unrealized after-tax losses on securities available for sale, and a $0.3 million decrease in unrealized after-tax losses on cash flow hedges, due to changes in interest rates during the first quarter of 2025. Hanmi also repurchased 50,000 shares of common stock at a cost of $1.1 million, for an average share price of $22.49, during the quarter. At March 31, 2025, 1,180,500 shares remain under Hanmi’s share repurchase program. Tangible common stockholders’ equity was $740.5 million, or 9.59% of tangible assets at March 31, 2025 compared with $721.1 million, or 9.41% of tangible assets at the end of the prior quarter. Please refer to the Non-GAAP Financial Measures section below for more information.

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, 2025, Hanmi’s preliminary common equity tier 1 capital ratio was 12.13% and its total risk-based capital ratio was 15.29%, compared with 12.11% and 15.24%, respectively, at the end of the prior quarter.

	As of															Ratio Change
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,			Q1-25			Q1-25
	2025			2024			2024			2024			2024			vs. Q4-24			vs. Q1-24
Regulatory Capital ratios (1)
Hanmi Financial
Total risk-based capital	15.29	%		15.24	%		15.03	%		15.24	%		15.20	%		0.05			0.09
Tier 1 risk-based capital	12.47	%		12.46	%		12.29	%		12.46	%		12.40	%		0.01			0.07
Common equity tier 1 capital	12.13	%		12.11	%		11.95	%		12.11	%		12.05	%		0.02			0.08
Tier 1 leverage capital ratio	10.67	%		10.63	%		10.56	%		10.51	%		10.36	%		0.04			0.31
Hanmi Bank
Total risk-based capital	14.48	%		14.43	%		14.27	%		14.51	%		14.50	%		0.05			-0.02
Tier 1 risk-based capital	13.35	%		13.36	%		13.23	%		13.47	%		13.44	%		-0.01			-0.09
Common equity tier 1 capital	13.35	%		13.36	%		13.23	%		13.47	%		13.44	%		-0.01			-0.09
Tier 1 leverage capital ratio	11.49	%		11.47	%		11.43	%		11.41	%		11.29	%		0.02			0.20
(1) Preliminary ratios for March 31, 2025

Asset Quality
Loans 30 to 89 days past due and still accruing were 0.28% of loans at the end of the first quarter of 2025, compared with 0.30% at the end of the prior quarter.

Criticized loans totaled $164.9 million at March 31, 2025, down from $165.3 million at the end of the fourth quarter of 2024. The $0.4 million decrease resulted from a $21.2 million decrease in special mention loans, partially offset by a $20.8 million increase in classified loans. The $21.2 million decrease in special mention loans included loan upgrades of $20.5 million and amortization/paydowns of $0.9 million, offset by additions of $0.2 million. The $20.8 million increase in classified loans resulted from $22.8 million of loan downgrades and $3.4 million of equipment financing downgrades. Loan downgrades were primarily the result of a $20.0 million syndicated commercial real estate office loan designated as nonaccrual during the first quarter of 2025. Additions were offset by $2.7 million of equipment financing  charge-offs, $1.1 million of payoffs, $1.0 million of amortization/paydowns, $0.3 million of loan charge-offs and $0.3 million of loan upgrades.

Nonperforming loans were $35.6 million at March 31, 2025, up from $14.3 million at the end of the prior quarter. The $21.3 million increase primarily reflects additions of $26.1 million, offset by charge-offs of $3.0 million, pay-offs of $0.8 million, $0.9 million in paydowns, and loan upgrades of $0.1 million. Additions included $23.0 million of loans and $3.1 million of equipment financing agreements. Loan additions were driven primarily by the previously mentioned $20.0 million commercial real estate loan designated as nonaccrual during the first quarter of 2025.

Nonperforming assets were $35.7 million at March 31, 2025, up from $14.4 million at the end of the prior quarter. As a percentage of total assets, nonperforming assets were 0.46% at March 31, 2025, and 0.19% at the end of the prior quarter.

Gross charge-offs for the first quarter of 2025 were $3.2 million, compared with $3.4 million for the preceding quarter. Charge-offs included $2.8 million on equipment financing agreements. Recoveries of previously charged-off loans were $1.3 million in the first quarter of 2025, which included $0.8 million of recoveries on equipment financing agreements. As a result, there were $1.9 million of net charge-offs for the first quarter of 2025, compared to net recoveries of $0.1 million for the prior quarter.

The allowance for credit losses was $70.6 million at March 31, 2025, compared with $70.1 million at December 31, 2024. Specific allowances for loans increased $5.6 million because of a $6.2 million specific allowance on the previously mentioned $20.0 million commercial real estate loan designated as nonaccrual during the first quarter of 2025, and collectively evaluated allowances decreased $5.2 million. The ratio of the allowance for credit losses to loans was 1.12% at March 31, 2025 and at the end of the prior quarter.

	As of or for the Three Months Ended (in thousands)																				Amount Change
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,				Q1-25				Q1-25
	2025				2024				2024				2024				2024				vs. Q4-24				vs. Q1-24
Asset Quality Data and Ratios
Delinquent loans:
Loans, 30 to 89 days past due and still accruing	$	17,312			$	18,454			$	15,027			$	13,844			$	15,839			$	(1,142	)		$	1,473
Delinquent loans to total loans		0.28	%			0.30	%			0.24	%			0.22	%			0.26	%			(0.02	)			0.02
Criticized loans:
Special mention	$	118,380			$	139,612			$	131,575			$	36,921			$	62,317			$	(21,232	)		$	56,063
Classified		46,519				25,683				28,377				33,945				23,670				20,836				22,849
Total criticized loans (1)	$	164,899			$	165,295			$	159,952			$	70,866			$	85,987			$	(396	)		$	78,912
Criticized loans to total loans		2.62	%			2.64	%			2.56	%			1.15	%			1.39	%			(0.02	)			1.23
Nonperforming assets:
Nonaccrual loans	$	35,459			$	14,272			$	15,248			$	19,245			$	14,025			$	21,187			$	21,434
Loans 90 days or more past due and still accruing		112				-				242				-				-				112				112
Nonperforming loans (2)		35,571				14,272				15,490				19,245				14,025				21,299				21,546
Other real estate owned, net		117				117				772				772				117				-				-
Nonperforming assets (3)	$	35,688			$	14,389			$	16,262			$	20,017			$	14,142			$	21,299			$	21,546
Nonperforming assets to assets (2)		0.46	%			0.19	%			0.21	%			0.26	%			0.19	%			0.27				0.27
Nonperforming loans to total loans		0.57	%			0.23	%			0.25	%			0.31	%			0.23	%			0.34				0.34
(1) Includes nonaccrual loans of $34.4 million, $13.4 million, $13.6 million, $18.4 million, and $14.0 million as of Q1-25, Q4-24, Q3-24, Q2-24, and Q1-24, respectively.
(2) Excludes a $27.2 million nonperforming loan held-for-sale as of September 30, 2024.
(3) Excludes repossessed personal property of $0.7 million, $0.6 million, $1.2 million, $1.2 million, and $1.3 million as of Q1-25, Q4-24, Q3-24, Q2-24, and Q1-24, respectively.

	As of or for the Three Months Ended (in thousands)
	Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,
	2025				2024				2024				2024				2024
Allowance for credit losses related to loans:
Balance at beginning of period	$	70,147			$	69,163			$	67,729			$	68,270			$	69,462
Credit loss expense (recovery) on loans		2,396				855				2,312				1,248				404
Net loan (charge-offs) recoveries		(1,946	)			129				(878	)			(1,789	)			(1,596	)
Balance at end of period	$	70,597			$	70,147			$	69,163			$	67,729			$	68,270
Net loan charge-offs (recoveries) to average loans (1)		0.13	%			-0.01	%			0.06	%			0.12	%			0.10	%
Allowance for credit losses to loans		1.12	%			1.12	%			1.11	%			1.10	%			1.11	%
Allowance for credit losses related to off-balance sheet items:
Balance at beginning of period	$	2,074			$	1,984			$	2,010			$	2,297			$	2,474
Credit loss expense (recovery) on off-balance sheet items		325				90				(26	)			(287	)			(177	)
Balance at end of period	$	2,399			$	2,074			$	1,984			$	2,010			$	2,297
Unused commitments to extend credit	$	896,282			$	782,587			$	739,975			$	795,391			$	792,769
(1) Annualized

Corporate Developments
On January 28, 2025, Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2025 first quarter of $0.27 per share. Hanmi paid the dividend on February 26, 2025, to stockholders of record as of the close of business on February 10, 2025.

Earnings Conference Call        
Hanmi Bank will host its first quarter 2025 earnings conference call today, April 22, 2025, 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 32 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;
• the imposition of tariffs or other domestic or international governmental policies;
• changes in liquidity, including the size and composition of our deposit portfolio and 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, 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:
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
	2025				2024				Change				2024				Change
Assets
Cash and due from banks	$	329,003			$	304,800				7.9	%		$	256,038				28.5	%
Securities available for sale, at fair value		907,011				905,798				0.1	%			872,190				4.0	%
Loans held for sale, at the lower of cost or fair value		11,831				8,579				37.9	%			3,999				195.8	%
Loans receivable, net of allowance for credit losses		6,211,592				6,181,230				0.5	%			6,109,570				1.7	%
Accrued interest receivable		23,536				22,937				2.6	%			23,032				2.2	%
Premises and equipment, net		20,866				21,404				-2.5	%			21,952				-4.9	%
Customers' liability on acceptances		552				1,226				-55.0	%			161				242.9	%
Servicing assets		6,422				6,457				-0.5	%			6,890				-6.8	%
Goodwill and other intangible assets, net		11,031				11,031				0.0	%			11,074				-0.4	%
Federal Home Loan Bank ("FHLB") stock, at cost		16,385				16,385				0.0	%			16,385				0.0	%
Bank-owned life insurance		57,476				57,168				0.5	%			56,639				1.5	%
Prepaid expenses and other assets		133,330				140,910				-5.4	%			134,116				-0.6	%
Total assets	$	7,729,035			$	7,677,925				0.7	%		$	7,512,046				2.9	%
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	$	2,066,659			$	2,096,634				-1.4	%		$	1,933,060				6.9	%
Interest-bearing		4,552,816				4,339,142				4.9	%			4,443,000				2.5	%
Total deposits		6,619,475				6,435,776				2.9	%			6,376,060				3.8	%
Accrued interest payable		29,646				34,824				-14.9	%			38,007				-22.0	%
Bank's liability on acceptances		552				1,226				-55.0	%			161				242.9	%
Borrowings		117,500				262,500				-55.2	%			172,500				-31.9	%
Subordinated debentures		130,799				130,638				0.1	%			130,165				0.5	%
Accrued expenses and other liabilities		79,578				80,787				-1.5	%			92,053				-13.6	%
Total liabilities		6,977,550				6,945,751				0.5	%			6,808,946				2.5	%
Stockholders' equity:
Common stock		34				34				0.0	%			34				0.0	%
Additional paid-in capital		591,942				591,069				0.1	%			587,687				0.7	%
Accumulated other comprehensive income		(60,002	)			(70,723	)			15.2	%			(76,890	)			22.0	%
Retained earnings		360,289				350,869				2.7	%			326,526				10.3	%
Less treasury stock		(140,778	)			(139,075	)			-1.2	%			(134,257	)			-4.9	%
Total stockholders' equity		751,485				732,174				2.6	%			703,100				6.9	%
Total liabilities and stockholders' equity	$	7,729,035			$	7,677,925				0.7	%		$	7,512,046				2.9	%

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
	2025				2024				Change				2024				Change
Interest and dividend income:
Interest and fees on loans receivable	$	90,887			$	91,545				-0.7	%		$	91,674				-0.9	%
Interest on securities		6,169				5,866				5.2	%			4,955				24.5	%
Dividends on FHLB stock		360				360				0.0	%			361				-0.3	%
Interest on deposits in other banks		1,841				2,342				-21.4	%			2,604				-29.3	%
Total interest and dividend income		99,257				100,113				-0.9	%			99,594				-0.3	%
Interest expense:
Interest on deposits		40,559				43,406				-6.6	%			45,638				-11.1	%
Interest on borrowings		2,024				1,634				23.9	%			1,655				22.3	%
Interest on subordinated debentures		1,582				1,624				-2.6	%			1,646				-3.9	%
Total interest expense		44,165				46,664				-5.4	%			48,939				-9.8	%
Net interest income before credit loss expense		55,092				53,449				3.1	%			50,655				8.8	%
Credit loss expense		2,721				945				187.9	%			227				1098.7	%
Net interest income after credit loss expense		52,371				52,504				-0.3	%			50,428				3.9	%
Noninterest income:
Service charges on deposit accounts		2,217				2,192				1.1	%			2,450				-9.5	%
Trade finance and other service charges and fees		1,396				1,364				2.3	%			1,414				-1.3	%
Gain on sale of Small Business Administration ("SBA") loans		2,000				1,443				38.6	%			1,482				35.0	%
Other operating income		2,113				2,358				-10.4	%			2,387				-11.5	%
Total noninterest income		7,726				7,357				5.0	%			7,733				-0.1	%
Noninterest expense:
Salaries and employee benefits		20,972				20,498				2.3	%			21,585				-2.8	%
Occupancy and equipment		4,450				4,503				-1.2	%			4,537				-1.9	%
Data processing		3,787				3,800				-0.3	%			3,551				6.6	%
Professional fees		1,468				1,821				-19.4	%			1,893				-22.5	%
Supplies and communications		517				551				-6.2	%			601				-14.0	%
Advertising and promotion		585				821				-28.7	%			907				-35.5	%
Other operating expenses		3,205				2,540				26.2	%			3,371				-4.9	%
Total noninterest expense		34,984				34,534				1.3	%			36,445				-4.0	%
Income before tax		25,113				25,327				-0.8	%			21,716				15.6	%
Income tax expense		7,441				7,632				-2.5	%			6,552				13.6	%
Net income	$	17,672			$	17,695				-0.1	%		$	15,164				16.5	%
Basic earnings per share:	$	0.59			$	0.59							$	0.50
Diluted earnings per share:	$	0.58			$	0.58							$	0.50
Weighted-average shares outstanding:
Basic		29,937,660				29,933,644								30,119,646
Diluted		30,058,248				30,011,773								30,119,646
Common shares outstanding		30,233,514				30,195,999								30,276,358

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

	Three Months Ended
	March 31, 2025										December 31, 2024										March 31, 2024
					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)	$	6,189,531			$	90,887		5.95	%		$	6,103,264			$	91,545		5.97	%		$	6,137,888			$	91,674		6.00	%
Securities (2)		1,001,499				6,169		2.49	%			998,313				5,866		2.38	%			969,520				4,955		2.07	%
FHLB stock		16,385				360		8.92	%			16,385				360		8.75	%			16,385				361		8.87	%
Interest-bearing deposits in other banks		176,028				1,841		4.24	%			204,408				2,342		4.56	%			201,724				2,604		5.19	%
Total interest-earning assets		7,383,443				99,257		5.45	%			7,322,370				100,113		5.45	%			7,325,517				99,594		5.47	%
Noninterest-earning assets:
Cash and due from banks		53,670										54,678										58,382
Allowance for credit losses		(69,648	)									(69,291	)									(69,106	)
Other assets		249,148										246,744										244,700
Total assets	$	7,616,613									$	7,554,501									$	7,559,493
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	79,369			$	27		0.14	%		$	79,784			$	26		0.13	%		$	86,401			$	30		0.14	%
Money market and savings		2,037,224				16,437		3.27	%			1,934,540				16,564		3.41	%			1,815,085				16,553		3.67	%
Time deposits		2,345,346				24,095		4.17	%			2,346,363				26,816		4.55	%			2,507,830				29,055		4.66	%
Total interest-bearing deposits		4,461,939				40,559		3.69	%			4,360,687				43,406		3.96	%			4,409,316				45,638		4.16	%
Borrowings		179,444				2,024		4.57	%			141,604				1,634		4.59	%			162,418				1,655		4.10	%
Subordinated debentures		130,718				1,582		4.84	%			130,567				1,624		4.97	%			130,088				1,646		5.06	%
Total interest-bearing liabilities		4,772,101				44,165		3.75	%			4,632,858				46,664		4.01	%			4,701,822				48,939		4.19	%
Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,895,953										1,967,789										1,921,189
Other liabilities		144,654										162,064										164,524
Stockholders' equity		803,905										791,790										771,958
Total liabilities and stockholders' equity	$	7,616,613									$	7,554,501									$	7,559,493
Net interest income					$	55,092									$	53,449									$	50,655
Cost of deposits								2.59	%									2.73	%									2.90	%
Net interest spread (taxable equivalent basis)								1.70	%									1.44	%									1.28	%
Net interest margin (taxable equivalent basis)								3.02	%									2.91	%									2.78	%
(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

These disclosures 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.

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.

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	2025				2024				2024				2024				2024
Assets	$	7,729,035			$	7,677,925			$	7,712,299			$	7,586,347			$	7,512,046
Less goodwill and other intangible assets		(11,031	)			(11,031	)			(11,031	)			(11,048	)			(11,074	)
Tangible assets	$	7,718,004			$	7,666,894			$	7,701,268			$	7,575,299			$	7,500,972
Stockholders' equity (1)	$	751,485			$	732,174			$	736,709			$	707,059			$	703,100
Less goodwill and other intangible assets		(11,031	)			(11,031	)			(11,031	)			(11,048	)			(11,074	)
Tangible stockholders' equity (1)	$	740,454			$	721,143			$	725,678			$	696,011			$	692,026
Stockholders' equity to assets		9.72	%			9.54	%			9.55	%			9.32	%			9.36	%
Tangible common equity to tangible assets (1)		9.59	%			9.41	%			9.42	%			9.19	%			9.23	%
Common shares outstanding		30,233,514				30,195,999				30,196,755				30,272,110				30,276,358
Tangible common equity per common share	$	24.49			$	23.88			$	24.03			$	22.99			$	22.86
(1) There were no preferred shares outstanding at the periods indicated.

Preprovision Net Revenues

Preprovision net revenues is supplemental financial information determined by a method other than in accordance with U.S. GAAP. This non-GAAP measure is used by management to measure Hanmi’s core operational performance, excluding the impact of provisions for loan losses. By isolating preprovision net revenues, management can better understand the Company’s true profitability and make more informed strategic decisions. Preprovision net revenues is calculated adding income tax expense and credit loss expense to net income. Management believes this financial measure highlights the Company's revenue activities and operational efficiency, excluding unpredictable loan loss provisions.

The following table details the Company's preprovision net revenues, which are non-GAAP measures, for the periods indicated:

Preprovision Net Revenues (Unaudited)
(In thousands, except percentages)

																					Amount Change
Hanmi Financial	March 31,				December 31,				September 30,				June 30,				March 31,				Q1-25			Q1-25
Corporation	2025				2024				2024				2024				2024				vs. Q4-24			vs. Q1-24
Net income	$	17,672			$	17,695			$	14,892			$	14,451			$	15,164
Add back:
Credit loss expense		2,721				945				2,286				961				227
Income tax expense		7,441				7,632				6,231				5,989				6,552
Preprovision net revenues	$	27,834			$	26,272			$	23,409			$	21,401			$	21,943			5.9	%		26.8	%

FAQ

What was Hanmi Financial's (HAFC) net interest margin in Q1 2025?

Hanmi's net interest margin expanded by 11 basis points to 3.02% in Q1 2025, up from 2.91% in Q4 2024.

How much did HAFC's deposits grow in Q1 2025?

Deposits increased by 2.9% to $6.62 billion in Q1 2025, driven by new commercial accounts and contributions from newly opened branches.

What was HAFC's loan production and average interest rate in Q1 2025?

Loan production was $345.9 million with a weighted average interest rate of 7.35% in Q1 2025.

How did HAFC's credit quality metrics perform in Q1 2025?

Nonperforming loans were $35.6 million (0.57% of loans), with net charge-offs of $1.9 million (0.13% annualized) and allowance for credit losses at $70.6 million (1.12% of loans).