LOS ANGELES, July 21, 2026 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ: HAFC, or "Hanmi"), the parent company of Hanmi Bank (the "Bank"), today reported financial results for the second quarter of 2026.
Net income for the second quarter of 2026 was $23.5 million, or $0.79 per diluted share, compared with $22.6 million, or $0.75 per diluted share for the first quarter of 2026. The return on average assets for the second quarter was 1.20% and the return on average equity was 11.09%, compared with a return on average assets of 1.18% and a return on average equity of 10.86% for the first quarter of 2026.
CEO Commentary
"Hanmi delivered another quarter of strong earnings growth, reflecting consistent execution across our business," said Bonnie Lee, President and Chief Executive Officer. "Our capital position remained healthy while returning 58% of earnings to shareholders in the form of dividends and share repurchases. Return on average equity increased to 11.1%, supported by robust deposit growth, solid loan production, lower funding costs, and prudent expense management. Deposits grew 2.3% sequentially, with noninterest-bearing deposits increasing 5.2%, underscoring the strength of our relationship-based banking model and the value of our franchise."
"Consistent with our strategy, we maintained a steady pace of loan production while continuing to diversify our loan portfolio. Importantly, credit quality remained excellent, reflecting our prudent underwriting standards and disciplined approach to risk management."
"Based on our strong first-half performance, robust loan and deposit pipelines, and the momentum we are seeing across the business, we remain optimistic about our outlook and are confident in our ability to deliver continued earnings growth and strong financial performance through the second half of 2026," concluded Lee.
Second Quarter 2026 Highlights:
Net income was $23.5 million, or $0.79 per diluted share, up 4.2% from the first quarter, driven by continued growth in net interest income and lower credit loss expense.
Return on average assets and return on average equity during the second quarter were 1.20% and 11.09%, respectively.
Deposits increased 2.3% to $7.0 billion from the prior quarter and noninterest-bearing demand deposits increased to 31% of total deposits, from 30% for the prior quarter.
Net interest income increased 1.0% from the prior quarter, driven by the growth in commercial real estate and commercial and industrial lending. The increase was further supported by an improved funding mix, including lower-cost interest-bearing deposits and reduced borrowings.
Net interest margin decreased two basis points to 3.36%, due primarily to normalization of FHLB dividend income, which elevated interest income in the prior quarter.
Asset quality remained strong as nonperforming assets to total assets was 0.12%, an improvement of four basis points from the prior quarter, and nonperforming loans to total loans was 0.15%, also an improvement of four basis points from the prior quarter.
Hanmi returned 58% of second-quarter net earnings to shareholders in the form of $8.3 million in dividends and $5.2 million in share repurchases; capital ratios remained healthy with tangible common equity to tangible assets at 10.03%.(1)
(1) Refer to "Non-GAAP Financial Measures" for further details.
For more information about Hanmi, please see the Q2 2026 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 | ||||||||||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Q2-26 | Q2-26 | |||||||||||||||||||||
2026 | 2026 | 2025 | 2025 | 2025 | vs. Q1-26 | vs. Q2-25 | |||||||||||||||||||||
Net income | $ | 23,505 | $ | 22,557 | $ | 21,239 | $ | 22,061 | $ | 15,117 | $ | 948 | $ | 8,388 | |||||||||||||
Net income per diluted common share | $ | 0.79 | $ | 0.75 | $ | 0.70 | $ | 0.73 | $ | 0.50 | $ | 0.04 | $ | 0.29 | |||||||||||||
Assets | $ | 8,001,473 | $ | 7,839,227 | $ | 7,869,185 | $ | 7,856,731 | $ | 7,862,363 | $ | 162,246 | $ | 139,110 | |||||||||||||
Loans | $ | 6,535,312 | $ | 6,545,466 | $ | 6,563,367 | $ | 6,528,259 | $ | 6,305,957 | $ | (10,154 | ) | $ | 229,355 | ||||||||||||
Deposits | $ | 6,955,342 | $ | 6,800,622 | $ | 6,677,650 | $ | 6,766,639 | $ | 6,729,122 | $ | 154,720 | $ | 226,220 | |||||||||||||
Return on average assets | 1.20 | % | 1.18 | % | 1.07 | % | 1.12 | % | 0.79 | % | 0.02 | 0.41 | |||||||||||||||
Return on average stockholders' equity | 11.09 | % | 10.86 | % | 10.14 | % | 10.69 | % | 7.48 | % | 0.23 | 3.61 | |||||||||||||||
Net interest margin | 3.36 | % | 3.38 | % | 3.28 | % | 3.22 | % | 3.07 | % | -0.02 | 0.29 | |||||||||||||||
Efficiency ratio(1) | 54.07 | % | 53.48 | % | 54.95 | % | 52.65 | % | 55.74 | % | 0.59 | -1.67 | |||||||||||||||
Tangible common equity to tangible assets(2) | 10.03 | % | 10.11 | % | 9.99 | % | 9.80 | % | 9.58 | % | -0.08 | 0.45 | |||||||||||||||
Tangible common equity per common share(2) | $ | 27.04 | $ | 26.56 | $ | 26.27 | $ | 25.64 | $ | 24.91 | 0.48 | 2.13 | |||||||||||||||
(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 increased $0.7 million, or 1.0%, to $63.9 million for the second quarter of 2026, from $63.2 million for the first quarter. This increase was principally due to higher interest income on loans, which increased by $0.9 million from the first quarter, as well as a $0.8 million increase in interest income from securities and interest-bearing deposits in other institutions. Interest expense on deposits, however, increased by $1.0 million from the first quarter.
Net interest margin (taxable equivalent) declined by two basis points to 3.36%, from 3.38% for the first quarter of 2026. This decline was driven by lower contributions from loans and FHLB stock, with unfavorable impacts of five basis points and three basis points, respectively, compared to the first quarter. Partially offsetting the decline were higher contributions from borrowings and interest-bearing deposits, with favorable impacts of three basis points each.
While the average yield on loans for the second quarter remained unchanged at 5.90%, the average balance of loans for the second quarter was $6.44 billion, up 0.1% from the previous quarter. The cost of interest-bearing deposits for the second quarter was 3.17%, down three basis points from the first quarter, and the average balance of interest-bearing deposits was $4.78 billion, up 2.7% from the previous quarter. The ratio of average loans to average deposits for the second quarter was 95.5%, compared with 97.5% for the previous quarter.
For the Three Months Ended (in thousands) | Percentage Change | ||||||||||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Q2-26 | Q2-26 | |||||||||||||||||||||
Net Interest Income | 2026 | 2026 | 2025 | 2025 | 2025 | vs. Q1-26 | vs. Q2-25 | ||||||||||||||||||||
Interest and fees on loans(1) | $ | 94,808 | $ | 93,866 | $ | 96,592 | $ | 95,691 | $ | 92,589 | 1.0 | % | 2.4 | % | |||||||||||||
Interest on securities | 6,337 | 5,959 | 6,323 | 6,592 | 6,261 | 6.3 | % | 1.2 | % | ||||||||||||||||||
Dividends on FHLB stock | 219 | 831 | 361 | 357 | 354 | -73.6 | % | -38.1 | % | ||||||||||||||||||
Interest on deposits in other banks | 1,958 | 1,496 | 1,837 | 2,586 | 2,129 | 30.9 | % | -8.0 | % | ||||||||||||||||||
Total interest and dividend income | $ | 103,322 | $ | 102,152 | $ | 105,113 | $ | 105,226 | $ | 101,333 | 1.1 | % | 2.0 | % | |||||||||||||
Interest on deposits | 37,774 | 36,738 | 39,978 | 42,244 | 41,924 | 2.8 | % | -9.9 | % | ||||||||||||||||||
Interest on borrowings | 154 | 676 | 695 | 324 | 684 | -77.2 | % | -77.5 | % | ||||||||||||||||||
Interest on subordinated debentures | 1,537 | 1,535 | 1,561 | 1,579 | 1,586 | 0.1 | % | -3.1 | % | ||||||||||||||||||
Total interest expense | 39,465 | 38,949 | 42,234 | 44,147 | 44,194 | 1.3 | % | -10.7 | % | ||||||||||||||||||
Net interest income | $ | 63,857 | $ | 63,203 | $ | 62,879 | $ | 61,079 | $ | 57,139 | 1.0 | % | 11.8 | % | |||||||||||||
(1)Includes loans held for sale. |
For the Three Months Ended (in thousands) | Percentage Change | ||||||||||||||||||||||||||
Average Earning Assets and Interest-bearing | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Q2-26 | Q2-26 | ||||||||||||||||||||
Liabilities | 2026 | 2026 | 2025 | 2025 | 2025 | vs. Q1-26 | vs. Q2-25 | ||||||||||||||||||||
Loans(1) | $ | 6,441,853 | $ | 6,434,316 | $ | 6,456,239 | $ | 6,304,435 | $ | 6,257,741 | 0.1 | % | 2.9 | % | |||||||||||||
Securities | 950,786 | 921,065 | 955,811 | 985,888 | 993,975 | 3.2 | % | -4.3 | % | ||||||||||||||||||
FHLB stock | 16,385 | 16,385 | 16,385 | 16,385 | 16,385 | 0.0 | % | 0.0 | % | ||||||||||||||||||
Interest-bearing deposits in other banks | 221,361 | 171,953 | 191,731 | 239,993 | 200,266 | 28.7 | % | 10.5 | % | ||||||||||||||||||
Average interest-earning assets | $ | 7,630,385 | $ | 7,543,719 | $ | 7,620,166 | $ | 7,546,701 | $ | 7,468,367 | 1.1 | % | 2.2 | % | |||||||||||||
Demand: interest-bearing | $ | 81,682 | $ | 74,963 | $ | 77,297 | $ | 86,839 | $ | 81,308 | 9.0 | % | 0.5 | % | |||||||||||||
Money market and savings | 2,056,148 | 2,063,186 | 2,130,616 | 2,122,967 | 2,109,221 | -0.3 | % | -2.5 | % | ||||||||||||||||||
Time deposits | 2,646,480 | 2,522,505 | 2,506,582 | 2,494,285 | 2,434,659 | 4.9 | % | 8.7 | % | ||||||||||||||||||
Average interest-bearing deposits | 4,784,310 | 4,660,654 | 4,714,495 | 4,704,091 | 4,625,188 | 2.7 | % | 3.4 | % | ||||||||||||||||||
Borrowings | 15,330 | 69,388 | 64,565 | 27,772 | 60,134 | -77.9 | % | -74.5 | % | ||||||||||||||||||
Subordinated debentures | 130,695 | 130,541 | 130,385 | 130,766 | 130,880 | 0.1 | % | -0.1 | % | ||||||||||||||||||
Average interest-bearing liabilities | $ | 4,930,335 | $ | 4,860,583 | $ | 4,909,445 | $ | 4,862,629 | $ | 4,816,202 | 1.4 | % | 2.4 | % | |||||||||||||
Average Noninterest Bearing Deposits | |||||||||||||||||||||||||||
Demand deposits - noninterest bearing | $ | 1,963,242 | $ | 1,937,628 | $ | 1,969,908 | $ | 1,960,331 | $ | 1,934,985 | 1.3 | % | 1.5 | % | |||||||||||||
(1)Includes loans held for sale. |
For the Three Months Ended | Yield/Rate Change | ||||||||||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Q2-26 | Q2-26 | |||||||||||||||||||||
Average Yields and Rates | 2026 | 2026 | 2025 | 2025 | 2025 | vs. Q1-26 | vs. Q2-25 | ||||||||||||||||||||
Loans(1) | 5.90 | % | 5.90 | % | 5.94 | % | 6.03 | % | 5.93 | % | 0.00 | -0.03 | |||||||||||||||
Securities(2) | 2.69 | % | 2.62 | % | 2.67 | % | 2.70 | % | 2.55 | % | 0.07 | 0.14 | |||||||||||||||
FHLB stock | 5.36 | % | 20.56 | % | 8.75 | % | 8.65 | % | 8.65 | % | -15.20 | -3.29 | |||||||||||||||
Interest-bearing deposits in other banks | 3.55 | % | 3.53 | % | 3.80 | % | 4.27 | % | 4.26 | % | 0.02 | -0.71 | |||||||||||||||
Interest-earning assets | 5.43 | % | 5.48 | % | 5.48 | % | 5.54 | % | 5.44 | % | -0.05 | -0.01 | |||||||||||||||
Interest-bearing deposits | 3.17 | % | 3.20 | % | 3.36 | % | 3.56 | % | 3.64 | % | -0.03 | -0.47 | |||||||||||||||
Borrowings | 4.06 | % | 3.94 | % | 4.27 | % | 4.63 | % | 4.58 | % | 0.12 | -0.52 | |||||||||||||||
Subordinated debentures | 4.70 | % | 4.70 | % | 4.79 | % | 4.83 | % | 4.84 | % | 0.00 | -0.14 | |||||||||||||||
Interest-bearing liabilities | 3.21 | % | 3.25 | % | 3.41 | % | 3.60 | % | 3.68 | % | -0.04 | -0.47 | |||||||||||||||
Net interest margin (taxable equivalent basis) | 3.36 | % | 3.38 | % | 3.28 | % | 3.22 | % | 3.07 | % | -0.02 | 0.29 | |||||||||||||||
Cost of deposits | 2.25 | % | 2.26 | % | 2.37 | % | 2.51 | % | 2.56 | % | -0.01 | -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 second quarter of 2026 was $1.2 million, compared with $2.9 million for the first quarter. The $1.7 million decline was due to lower net charge-offs during the second quarter. Credit loss expense during the second quarter included a $1.3 million provision for loan losses and a negative provision of $0.1 million for off-balance sheet items. First-quarter credit loss expense included a $3.2 million provision for loan losses and a negative provision of $0.3 million for off-balance sheet items.
Noninterest income was $8.3 million, down 2.2% from $8.5 million for the first quarter of 2026, primarily due to a $0.8 million decrease in gain on sales of SBA loans. The gain was $1.3 million for the second quarter of 2026, compared with $2.1 million for the first quarter of 2026. The decrease in gain on sales of SBA loans was partially offset by a $0.4 million increase in trade finance and other service charges and fees and modest increases in the other noninterest income categories.
The volume of SBA loans sold for the second quarter of 2026 decreased to $20.9 million from $32.5 million for the first quarter, while trade premiums increased to 7.92% from 7.88% for the first quarter. Residential mortgage loans sold for the second quarter were $30.6 million with a premium of 2.00%, compared with $31.7 million and 2.50% for the first quarter. The gain on sales of residential mortgage loans was $0.4 million for the second quarter, compared with $0.5 million for the first quarter.
For the Three Months Ended (in thousands) | Percentage Change | ||||||||||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Q2-26 | Q2-26 | |||||||||||||||||||||
Noninterest Income | 2026 | 2026 | 2025 | 2025 | 2025 | vs. Q1-26 | vs. Q2-25 | ||||||||||||||||||||
Service charges on deposit accounts | $ | 2,102 | $ | 2,127 | $ | 2,196 | $ | 2,160 | $ | 2,169 | -1.2 | % | -3.1 | % | |||||||||||||
Trade finance and other service charges and fees | 1,902 | 1,501 | 1,735 | 1,551 | 1,461 | 26.7 | % | 30.2 | % | ||||||||||||||||||
Servicing income | 955 | 870 | 924 | 924 | 754 | 9.8 | % | 26.7 | % | ||||||||||||||||||
Bank-owned life insurance income | 799 | 610 | 315 | 1,259 | 708 | 31.0 | % | 12.9 | % | ||||||||||||||||||
All other operating income | 915 | 844 | 758 | 973 | 819 | 8.4 | % | 11.7 | % | ||||||||||||||||||
Service charges, fees & other | 6,673 | 5,952 | 5,928 | 6,867 | 5,911 | 12.1 | % | 12.9 | % | ||||||||||||||||||
Gain on sale of SBA loans | 1,318 | 2,102 | 1,790 | 1,857 | 2,160 | -37.3 | % | -39.0 | % | ||||||||||||||||||
Gain on sale of residential mortgage loans | 357 | 485 | 581 | 1,156 | — | -26.4 | % | — | |||||||||||||||||||
Total noninterest income | $ | 8,348 | $ | 8,539 | $ | 8,299 | $ | 9,880 | $ | 8,071 | -2.2 | % | 3.4 | % |
Noninterest expense was $39.0 million for the second quarter of 2026, up 1.7% from $38.4 million for the first quarter, primarily due to a $0.8 million increase in salaries and employee benefits and a $0.4 million increase in other real estate owned (OREO) expense. Salaries and employee benefits increased because of the additional business day in the second quarter and annual merit increases, while the increase in OREO expense reflected the absence of the first-quarter gain on sale of OREO. These increases were partially offset by a $0.8 million decrease in professional fees that were attendant to the first-quarter resolution of several administrative items. The efficiency ratio increased to 54.07% for the second quarter, compared with 53.48% for the previous quarter.
For the Three Months Ended (in thousands) | Percentage Change | ||||||||||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Q2-26 | Q2-26 | |||||||||||||||||||||
2026 | 2026 | 2025 | 2025 | 2025 | vs. Q1-26 | vs. Q2-25 | |||||||||||||||||||||
Noninterest Expense | |||||||||||||||||||||||||||
Salaries and employee benefits | $ | 22,784 | $ | 21,956 | $ | 22,472 | $ | 22,163 | $ | 22,069 | 3.8 | % | 3.2 | % | |||||||||||||
Occupancy and equipment | 4,383 | 4,414 | 4,339 | 4,507 | 4,344 | -0.7 | % | 0.9 | % | ||||||||||||||||||
Data processing | 4,555 | 4,386 | 4,098 | 3,860 | 3,727 | 3.9 | % | 22.2 | % | ||||||||||||||||||
Professional fees | 1,997 | 2,780 | 2,343 | 1,978 | 1,725 | -28.2 | % | 15.8 | % | ||||||||||||||||||
Supplies and communication | 491 | 556 | 573 | 423 | 515 | -11.7 | % | -4.7 | % | ||||||||||||||||||
Advertising and promotion | 679 | 688 | 1,010 | 712 | 798 | -1.3 | % | -14.9 | % | ||||||||||||||||||
All other operating expenses | 4,103 | 3,849 | 3,795 | 3,665 | 3,567 | 6.6 | % | 15.0 | % | ||||||||||||||||||
Subtotal | 38,992 | 38,629 | 38,630 | 37,308 | 36,745 | 0.9 | % | 6.1 | % | ||||||||||||||||||
Other real estate owned expense (income) | 6 | ... |