Hanmi Financial Corporation · NASDAQ:HAFC
Hanmi Financial — Q2 2025 Earnings Presentation
34 slides from Hanmi Financial's earnings presentation, Jul 22, 2025
Slide 1: 2Q25 Earnings Supplemental Presentation
NASDAQ | HAFC 2Q25 Earnings Supplemental Presentation July 22, 2025 California | Colorado | Georgia | Illinois | New Jersey | New York | Texas | Virginia | Washington
Slide 2: Table of Contents
2Q25 PERFORMANCE RESULTS 5 – 21 TABLE OF LOAN PORTFOLIO DETAILS 22 – 31 CONTENTS 2Q25 FINANCIAL SUMMARY 32 – 32 NON-GAAP RECONCILIATION 33 – 34 2
Slide 3: Forward-Looking Statements
FORWARD -LOOKING STATEMENTS Hanmi Financial Corporation (the “Company”) cautions investors that any statements contained herein that are not historical facts are forward- looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, in
Slide 4: Non-GAAP Financial Information
NON-GAAP FINANCIAL INFORMATION This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These non-GAAP measures include tangible common equity to tangible assets, and tangib
Slide 5: 2Q25 Highlights
2Q25 HIGHLIGHTS Earnings Performance • Second quarter net income was $15.1 million, or $0.50 per diluted share, compared with$17.7 million, or $0.58 per diluted share in the first quarter; the decline was driven by credit loss expense. • Preprovision net revenues grew 3.7%, or $1.0 million, reflecti
Slide 6: Loan Production
LOAN PRODUCTION Weighted Average Coupon on New Production Loan production of $329.6 million in the second quarter included a meaningful contribution from 8.31% 7.92% 7.37% 7.35% 7.10% residential mortgage production, which increased 52% to $83.8 million quarter-over-quarter. ($ in millions) $347.8 $
Slide 7: Loan Portfolio
LOAN PORTFOLIO Outstanding ($ in millions) 2Q25 Average Yield Commercial Real Estate $6.31 Billion Loan Portfolio (CRE)(1,2) Portfolio $3,949 5.68% (as of June 30, 2025) Residential Real Estate (RRE)(3) Portfolio $994 5.38% Equipment Commercial & Industrial C&I Finance (C&I)(1) Portfolio $918 7.45%
Slide 8: Deposit Portfolio
DEPOSIT PORTFOLIO Total deposits increased 2% to $6.73 billion, led $3,723 $3,006 by a $42.7 million, or 2%, and $38.7 million, or Deposits 2%, increase in time and demand deposits, as of 2Q25 ($ in millions) 55% 45% respectively, quarter-over-quarter. Business Personal Noninterest-bearing demand de
Slide 9: Net Interest Income | Net Interest Margin
NET INTEREST INCOME | NET INTEREST MARGIN Net Interest Margin Net interest income for the second quarter was $57.1 million and net interest margin (taxable equivalent) was 3.07%, both up from the first quarter. 3.02% 3.07% 2.91% 2.69% 2.74% 0.09% 0.02% -0.03% -0.03% 3.07% ($ in millions) 3.02% $53.4
Slide 10: Net Interest Income Sensitivity
NET INTEREST INCOME SENSITIVITY Loan & Deposit Beta(1) Fed Funds Rate & Cost of CDs Fed 5.50% 5.00% 4.55% 4.50% 4.50% Funds 6.02% 6.00% 6.04% 5.95% Loan Rate(3) 5.91% 5.90% 5.93% 5.99% Cost of 5.78% 5.73% Yield CDs(2) 4.78% 4.79% 4.50% 4.17% 4.05% 5.00% 5.50% 5.50% 5.50% 5.50% 5.50% Fed 2Q24 3Q24 4Q
Slide 11: Noninterest Income
NONINTEREST INCOME 2Q25 Service Charges, Fees & Other（$ in million） Noninterest income for the second quarter was $8.1 million, up 5% from the first quarter, primarily 12% Service charges on deposit accounts because of a $0.4 million increase in bank-owned 12% $0.7 Trade finance and other service 37
Slide 12: Noninterest Expense
NONINTEREST EXPENSE Noninterest expense was $36.3 million for the second quarter, up 4% from the first quarter, primarily reflecting a $1.1 million increase in salaries and benefits in the second quarter. Noninterest expense / 1.89% 1.85% 1.86% 1.89% 1.82% Average assets $35.3 $35.1 $35.0 $36.3 $34.
Slide 13: Asset Quality – Delinquent & Criticized Loans
ASSET QUALITY – DELINQUENT & CRITICIZED LOANS Criticized Loans(2)（$ in millions） The $118.3 million decrease in criticized loans in the second quarter was primarily driven by a $85.3 2.56% 2.64% 2.62% Criticized million upgrade of two CRE loans, a $20.0 loans / Total loans million loan paydown, and
Slide 14: Asset Quality – Nonperforming Assets & Nonaccrual Loans
ASSET QUALITY – NONPERFORMING ASSETS & NONACCRUAL LOANS Nonperforming assets were $26.0 million at the end of the second quarter, down from $35.5 million at the end of the fourth quarter. Nonaccrual Loans（$ in millions） The decrease was primarily driven by an $8.6 million charge-off on a commercial
Slide 15: Asset Quality – Gross & Net Loan Charge-offs
ASSET QUALITY – GROSS & NET LOAN CHARGE -OFFS Net charge-offs for the second quarter were $11.4 million and included an $8.6 million loan charge-off. Net Charge-offs (Recoveries)（$ in millions） Gross Charge-offs（$ in millions） 0.73% Net Charge-offs / $12.4 Average loans $11.4 0.12% 0.06% 0.13% -0.01
Slide 16: ACL Trends
ACL TRENDS Allowance for credit losses was $66.8 million at June 30, 2025, or 1.06% to total loans, compared Credit Loss Expense（$ in millions） with $70.6 million and 1.12% at the end of the prior quarter. $7.6 Allowance for Credit Losses（$ in millions） 1.10% 1.11% 1.12% 1.12% 1.06% $2.3 $2.4 $69.2
Slide 17: ACL Analysis by Loan Type
ACL ANALYSIS BY LOAN TYPE ($ in millions) June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 Allowance Loans Allowance Loans Allowance Loans Allowance Loans Allowance Loans CRE $ 37.5 $ 3,948.9 $ 41.4 $ 3,975.7 $ 39.3 $ 3,949.6 $ 37.8 $ 3,932.1 $ 36.1 $ 3,888.5 C&I 6.9 9
Slide 18: Securities Portfolio
SECURITIES PORTFOLIO Available for Sale(1) Unrealized Loss The $994.6 million securities $995 Million $77 Million US Agy portfolio (all AFS, no HTM) represented Municipal 3% 13% 13% of assets at June 30, 2025 and Municipal UST 8% 12% US Agy US Agy CMO 7% US Agy CMO had a weighted average modified 20
Slide 19: Liquidity
LIQUIDITY Cash & Securities at Company-only （$ in millions） The Bank and the Company have ample liquidity Balance resources at June 30, 2025. Cash $ 9 Securities (AFS) 43 $ 52 Liquidity Position（$ in millions） Liquidity Ratios Balance % of Assets Liquid Assets to Total Assets Liquid Assets to Deposi
Slide 20: Capital Management
CAPITAL MANAGEMENT Dividend, Share Repurchase & TCE/TA(1)（$ in millions） Prudent capital management while driving 9.59% 9.58% shareholder return through stable quarterly dividends 9.42% 9.41% TCE / TA(1) 9.19% and share repurchase program. Tangible book value per share (TBVPS)(1) increased to $24.91
Slide 21: Regulatory Capital
REGULATORY CAPITAL The Company exceeds regulatory minimums and the Bank remains well capitalized at June 30, 2025. Company Bank CET1 CET1 4.50% 2.50% 7.00% 6.50% Capital Capital 12.12% 13.32% 11.31% 12.51% Tier 1 Tier 1 6.00% 2.50% 8.50% 8.00% Capital Capital 12.46% 13.32% 11.65% 12.51% Total Total
Slide 22: USKC Loans & Deposits
USKC (1) LOANS & DEPOSITS USKC Loans – Top 10 Industries (as of 2Q25) RE Investment USKC portfolio represented $841.5 million, or 13% 28% Auto Part Manufacturer 27% of the loan portfolio, and $950.2 million, or 14% of Hotel 20% the deposit portfolio. Food 5% Education 3% USKC CRE portfolio had a wei
Slide 23: Loan Portfolio Maturities
LOAN PORTFOLIO MATURITIES ($ in millions) <1 Year 1-3 Years >3 Years Total Real Estate Loans Retail $ 169.3 $ 306.5 $ 640.7 $ 1,116.5 Hospitality 145.2 267.2 409.6 822.0 Office 241.8 248.8 65.9 556.5 Other 338.7 464.6 570.5 1,373.8 Commercial Property $ 895.1 $ 1,287.1 $ 1,686.6 $ 3,868.9 Constructi
Slide 24: Loan Portfolio Distribution
LOAN PORTFOLIO DISTRIBUTION Residential Real CRE C&I Estate & Equipment Finance Owner Non-owner Lines of Residential Equipment ($ in millions) Multifamily Construction(1) Term(2) Occupied Occupied Credit(2) Real Estate Finance Total Balance $760 $2,669 $440 $80 $439 $479 $994 $445 Average $1.07 $3.1
Slide 25: Loan Portfolio Diversification
LOAN PORTFOLIO DIVERSIFICATION • CRE(1) represents 62% of the total portfolio • C&I(2) represents 15% of the total portfolio. Gas Station Mixed Use Construction 5% 3% 2% Other Multifamily 6% Manufacturing CRE Portfolio(1) 10% C&I Portfolio(2) 26% Other $3,949M Industrial Retail $918M 37% 11% 28% Fin
Slide 26: CRE Portfolio Geographical Exposure
CRE PORTFOLIO GEOGRAPHICAL Multifamily by State $440 Construction by State $80 EXPOSURE Illinois $12 Other $14 3% 3% Other New York $25 California $76 California 31% $38 17% $237 48% 54% New York CRE Composition by State Texas $101 $17 21% $3,949 ($ in millions) 23% Illinois Other $102 $642 3% 16% O
Slide 27: Office Loan Portfolio
OFFICE LOAN PORTFOLIO Portfolio by State The CRE office portfolio(1) was $556.5 million(2) at 2% June 30, 2025, representing 9% of the total loan 1% portfolio. 13% 81% Remaining = 3% $4.5M 2.02x 54.4% Average balance of the portfolio Weighted average debt Weighted average coverage ratio(3) of the lo
Slide 28: Hospitality Segment
HOSPITALITY SEGMENT Hospitality segment represented $822.0 million(1), Hospitality by Type or 13% of the total loan portfolio and 21% of the Convention Center total CRE portfolio at June 30, 2025. Airport 2% 5% Resort 7% (2) $4.5M 2.10x 49.4% Destination / Suburban (3) Metropolitan (3) Average balan
Slide 29: Retail Segment
RETAIL SEGMENT Retail segment represents $1.12 billion (1), or 18% Percentage of Portfolio of the total loan portfolio and 28% of the total CRE portfolio at June 30, 2025. Illinois 2% Georgia Other 3% 11% (2) Texas 12% $1.5M 2.01x 46.0% California 72% Average balance of the (3) Weighted average debt
Slide 30: Residential Real Estate Portfolio
RESIDENTIAL REAL ESTATE PORTFOLIO The RRE(1) portfolio was $993.9 million at June 30, Percentage of Portfolio 2025, representing 16% of the total loan portfolio. Jumbo QM Non-QM 2% (2) Our conservative underwriting policy focuses on high-quality mortgage originations with maximum Loan-to-Value (LTV)
Slide 31: Equipment Finance Portfolio
EQUIPMENT FINANCE PORTFOLIO Portfolio by Equipment 31% 29% Equipment finance portfolio represented $445.2 million, or 7% of the loan portfolio, at June 30, 2025 7% 7% 7% 4% 4% 4% 4% 3% Portfolio by Industry Agriculture 3% Other Services Other (1) Portfolio by State 13% Transportation 3% 21% Wholesal
Slide 32: 2Q25 Financial Summary
2Q25 FINANCIAL SUMMARY Change (1) ($ in millions, except EPS) June 30, 2025 March 31, 2025 June 30, 2024 Q/Q Y/Y Income Statement Summary Net interest income before credit loss $ 57.1 $ 55.1 $ 48.6 3.7% 17.5% Noninterest income 8.1 7.7 8.1 4.5% 0.2% Operating revenue 65.2 62.8 56.7 3.8% 15.1% Nonint
Slide 33: Non-GAAP Reconciliation: Tangible Common Equity to Tangible Asset Ratio
NON-GAAP RECONCILIATION: T A N G I BLE CO M M O N E Q U I T Y T O T A N G I BLE A S S E T R A T I O ($ in thousands, except per share data) June 30, March 31, December 31, September 30, June 30, Hanmi Financial Corporation 2025 2025 2024 2024 2024 Assets $ 7,862,363 $ 7,729,035 $ 7,677,925 $ 7,712,2
Slide 34: Non-GAAP Reconciliation: Pro Forma Regulatory Capital
NON-GAAP RECONCILIATION: P R O FO R MA R E G U L A T O R Y C A P I T A L ($ in thousands) Company(1) Bank(1) Common Total Common Total Equity Tier 1 Tier 1 Risk-based Equity Tier 1 Tier 1 Risk-based Regulatory capital $794,364 $816,687 $996,444 $873,118 $873,118 $942,875 Unrealized losses on AFS sec