LOS ANGELES, Oct. 21, 2025 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ:HAFC), the parent company of Hanmi Bank (the "Bank"), today reported financial results for the third quarter of 2025.

Net income for the third quarter of 2025 was $22.1 million, or $0.73 per diluted share, compared with $15.1 million, or $0.50 per diluted share, for the second quarter of 2025. The return on average assets for the third quarter of 2025 was 1.12% and the return on average equity was 10.69%, compared with a return on average assets of 0.79% and a return on average equity of 7.48% for the second quarter of 2025.

CEO Commentary

"Hanmi delivered outstanding third quarter results, which highlights the strength of our enduring franchise," said Bonnie Lee, President and Chief Executive Officer. "Our net interest margin expanded by 15 basis points to 3.22% and preprovision net revenue increased 16.4% quarter-over-quarter driven by robust growth in net interest income and well-managed expenses. As a result, we generated a return on average equity of 10.69%."

"Loan growth was healthy, supported by loan production of $571 million, up 73% from the prior quarter with a strong contribution coming from commercial loans. Our ongoing investments in our commercial lending teams, the USKC initiative and expansion into new markets, helped drive production for this key asset class. These investments also contributed to a 2.4% annualized increase in deposits, with noninterest-bearing demand deposits holding steady at approximately 31% of total deposits."

"Importantly, our excellent credit quality improved further with reductions in criticized loans and nonperforming assets. This progress reflects our comprehensive and proactive asset management practices, as well as our conservative credit underwriting culture."

"As we look ahead, we're energized by the momentum and strength across all aspects of our business. We remain focused on executing our strategies, deepening client relationships, and optimizing our balance sheet to deliver durable, long-term value for our shareholders," concluded Lee.

Third Quarter 2025 Highlights:

Third quarter net income increased 45.9% to $22.1 million, or $0.73 per diluted share from the second quarter; a $3.9 million increase in net interest income and a $5.5 million decrease in credit loss expense led to the increase in net income.
Loans receivable were $6.53 billion at September 30, 2025, up 3.5% from the end of the second quarter; loan production for the third quarter accelerated to $570.8 million, with a weighted average interest rate of 6.91%.
Deposits were $6.77 billion at September 30, 2025, up 0.6% from the end of the second quarter; noninterest-bearing demand deposits were 30.8% of total deposits at the end of the third quarter and the ratio of average loans to average deposits for the third quarter was 94.6%.
Preprovision net revenue¹ increased $4.7 million or 16.4% from the previous quarter, reflecting a 6.9% increase in net interest income, a 15 basis point increase in the net interest margin, a 22.4% increase in noninterest income and well-managed noninterest expenses with the efficiency ratio declining to 52.65%.
Credit loss expense for the third quarter was $2.1 million, a decrease of $5.5 million from the second quarter; the allowance for credit losses increased $3.0 million to $69.8 million, or 1.07% of loans; there were net loan recoveries for the third quarter of $0.5 million which included a $2.0 million recovery on a previously charged-off loan.
Nonperforming assets were $21.4 million at September 30, 2025, or 0.27% of loans, down 17.7% from the previous quarter; criticized loans also declined 2.6% to $45.4 million, or 0.69% of total loans.
Hanmi's capital position stayed strong with the ratio of tangible common equity to tangible assets² at 9.80%; during the third quarter, the company repurchased 199,698 common shares at a weighted average price of $23.45.

For more information about Hanmi, please see the Q3 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
	Sep 30			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Q3-25			Q3-25
	2025			2025			2025			2024			2024			vs. Q2-25			vs. Q3-24

Net income	$	22,061		$	15,117		$	17,672		$	17,695		$	14,892		$	6,944		$	7,169
Net income per diluted common share	$	0.73		$	0.50		$	0.58		$	0.58		$	0.49		$	0.23		$	0.24

Assets	$	7,856,731		$	7,862,363		$	7,729,035		$	7,677,925		$	7,712,299		$	(5,632	)	$	144,432
Loans receivable	$	6,528,259		$	6,305,957		$	6,282,189		$	6,251,377		$	6,257,744		$	222,302		$	270,515
Deposits	$	6,766,639		$	6,729,122		$	6,619,475		$	6,435,776		$	6,403,221		$	37,517		$	363,418

Return on average assets		1.12	%		0.79	%		0.94	%		0.93	%		0.79	%		0.33			0.33
Return on average stockholders' equity		10.69	%		7.48	%		8.92	%		8.89	%		7.55	%		3.21			3.14

Net interest margin		3.22	%		3.07	%		3.02	%		2.91	%		2.74	%		0.15			0.48
Efficiency ratio ⁽¹⁾		52.65	%		55.74	%		55.69	%		56.79	%		59.98	%		-3.09			-7.33

Tangible common equity to tangible assets ⁽²⁾		9.80	%		9.58	%		9.59	%		9.41	%		9.42	%		0.22			0.38
Tangible common equity per common share ⁽²⁾	$	25.64		$	24.91		$	24.49		$	23.88		$	24.03			0.73			1.61


⁽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 third quarter was $61.1 million, up 6.9% from $57.1 million for the second quarter of 2025. The net interest margin (taxable-equivalent) increased 15 basis points to 3.22%; the average yield on loans increased 10 basis points to 6.03% while the average cost of interest-bearing deposits declined eight basis points to 3.56%; net interest margin and the average loan yield benefited by three and four basis points, respectively, from a $0.6 million recovery of a previously charged-off loan.

Average interest-earning assets increased $78.3 million, or 1.0% and the average yield increased by ten basis points, primarily due to the increased production of commercial loans. Average loans receivable increased $46.7 million, or 0.7%. Third quarter loan prepayment fees were $0.3 million, compared with $0.2 million for the second quarter. Average interest-bearing liabilities increased $46.4 million, or 1.0%, while the average rate paid declined eight basis points due to the lower interest rate environment. Average interest-bearing deposits increased 1.7% while the average rate paid declined by eight basis points to 3.56%. Average borrowings decreased $32.4 million, or 53.8%, while the average rate paid increased five basis points.

	For the Three Months Ended (in thousands)										Percentage Change
	Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,		Q3-25			Q3-25
Net Interest Income	2025		2025		2025		2024		2024		vs. Q2-25			vs. Q3-24

Interest and fees on loans receivable⁽¹⁾	$	95,691	$	92,589	$	90,887	$	91,545	$	92,182		3.4	%		3.8	%
Interest on securities		6,592		6,261		6,169		5,866		5,523		5.3	%		19.4	%
Dividends on FHLB stock		357		354		360		360		356		0.8	%		0.3	%
Interest on deposits in other banks		2,586		2,129		1,841		2,342		2,356		21.5	%		9.8	%
Total interest and dividend income	$	105,226	$	101,333	$	99,257	$	100,113	$	100,417		3.8	%		4.8	%

Interest on deposits		42,244		41,924		40,559		43,406		47,153		0.8	%		-10.4	%
Interest on borrowings		324		684		2,024		1,634		1,561		-52.6	%		-79.2	%
Interest on subordinated debentures		1,579		1,586		1,582		1,624		1,652		-0.4	%		-4.4	%
Total interest expense		44,147		44,194		44,165		46,664		50,366		-0.1	%		-12.3	%
Net interest income	$	61,079	$	57,139	$	55,092	$	53,449	$	50,051		6.9	%		22.0	%

⁽¹⁾Includes loans held for sale.

	For the Three Months Ended (in thousands)										Percentage Change
	Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,		Q3-25			Q3-25
Average Earning Assets and Interest-bearing Liabilities	2025		2025		2025		2024		2024		vs. Q2-25			vs. Q3-24
Loans receivable ⁽¹⁾	$	6,304,435	$	6,257,741	$	6,189,531	$	6,103,264	$	6,112,324		0.7	%		3.1	%
Securities		985,888		993,975		1,001,499		998,313		986,041		-0.8	%		0.0	%
FHLB stock		16,385		16,385		16,385		16,385		16,385		0.0	%		0.0	%
Interest-bearing deposits in other banks		239,993		200,266		176,028		204,408		183,027		19.8	%		31.1	%
Average interest-earning assets	$	7,546,701	$	7,468,367	$	7,383,443	$	7,322,370	$	7,297,777		1.0	%		3.4	%

Demand: interest-bearing	$	86,839	$	81,308	$	79,369	$	79,784	$	83,647		6.8	%		3.8	%
Money market and savings		2,122,967		2,109,221		2,037,224		1,934,540		1,885,799		0.7	%		12.6	%
Time deposits		2,494,285		2,434,659		2,345,346		2,346,363		2,427,737		2.4	%		2.7	%
Average interest-bearing deposits		4,704,091		4,625,188		4,461,939		4,360,687		4,397,183		1.7	%		7.0	%
Borrowings		27,772		60,134		179,444		141,604		143,479		-53.8	%		-80.6	%
Subordinated debentures		130,766		130,880		130,718		130,567		130,403		-0.1	%		0.3	%
Average interest-bearing liabilities	$	4,862,629	$	4,816,202	$	4,772,101	$	4,632,858	$	4,671,065		1.0	%		4.1	%

Average Noninterest Bearing Deposits
Demand deposits - noninterest bearing	$	1,960,331	$	1,934,985	$	1,895,953	$	1,967,789	$	1,908,833		1.3	%		2.7	%

⁽¹⁾Includes loans held for sale.

	For the Three Months Ended															Yield/Rate Change
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Q3-25		Q3-25
Average Yields and Rates	2025			2025			2025			2024			2024			vs. Q2-25		vs. Q3-24
Loans receivable⁽¹⁾		6.03	%		5.93	%		5.95	%		5.97	%		6.00	%		0.10		0.03
Securities ⁽²⁾		2.70	%		2.55	%		2.49	%		2.38	%		2.27	%		0.15		0.43
FHLB stock		8.65	%		8.65	%		8.92	%		8.75	%		8.65	%		0.00		0.00
Interest-bearing deposits in other banks		4.27	%		4.26	%		4.24	%		4.56	%		5.12	%		0.01		-0.85
Interest-earning assets		5.54	%		5.44	%		5.45	%		5.45	%		5.48	%		0.10		0.06

Interest-bearing deposits		3.56	%		3.64	%		3.69	%		3.96	%		4.27	%		-0.08		-0.71
Borrowings		4.63	%		4.58	%		4.57	%		4.59	%		4.33	%		0.05		0.30
Subordinated debentures		4.83	%		4.84	%		4.84	%		4.97	%		5.07	%		-0.01		-0.24
Interest-bearing liabilities		3.60	%		3.68	%		3.75	%		4.01	%		4.29	%		-0.08		-0.69

Net interest margin (taxable equivalent basis)		3.22	%		3.07	%		3.02	%		2.91	%		2.74	%		0.15		0.48

Cost of deposits		2.51	%		2.56	%		2.59	%		2.73	%		2.97	%		-0.05		-0.46

⁽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 third quarter was $2.1 million, compared with $7.6 million for the second quarter of 2025. The decrease in credit loss expense reflected the decrease in net charge-offs, partially offset by an increase in qualitative estimated loss rates. Third quarter credit loss expense included a $2.5 million credit loss expense for loan losses and a $0.4 million credit loss recovery for off-balance sheet items. Second quarter credit loss expense included a $7.5 million credit loss expense for loan losses and a $0.1 million credit loss expense for off-balance sheet items.

Noninterest income was $9.9 million for the third quarter, up $1.8 million, or 22.4% from the second quarter. The increase was primarily due to a $1.2 million gain on sale of residential mortgage loans, a $0.5 million increase in bank-owned life insurance income from death benefit claims and a $0.2 million increase in servicing income, partially offset by a $0.3 million decrease from the gain on sale of SBA loans. The volume of residential mortgage loan sales during the third quarter was $67.8 million with a premium of 2.43%. There were no residential mortgage loan sales during the second quarter. Gain on sale of SBA loans was $1.9 million for the third quarter of 2025, compared with $2.2 million for the second quarter of 2025. The volume of SBA loans sold for the third quarter decreased to $32.6 million from $35.4 million for the second quarter of 2025, while trade premiums were 6.95% for the third quarter of 2025 compared with 7.61% for the second quarter.

	For the Three Months Ended (in thousands)										Percentage Change
	Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,		Q3-25			Q3-25
Noninterest Income	2025		2025		2025		2024		2024		vs. Q2-25			vs. Q3-24
Service charges on deposit accounts	$	2,160	$	2,169	$	2,217	$	2,192	$	2,311		-0.4	%		-6.5	%
Trade finance and other service charges and fees		1,551		1,461		1,396		1,364		1,254		6.2	%		23.7	%
Servicing income		924		754		732		668		817		22.5	%		13.1	%
Bank-owned life insurance income		1,259		708		309		316		320		77.8	%		293.4	%
All other operating income		973		819		897		1,037		1,008		18.8	%		-3.5	%
Service charges, fees & other		6,867		5,911		5,551		5,577		5,710		16.2	%		20.3	%

Gain on sale of SBA loans		1,857		2,160		2,000		1,443		1,544		-14.0	%		20.3	%
Gain on sale of mortgage loans		1,156		-		175		337		324		100.0	%		256.8	%
Gain on sale of bank premises		-		-		-		-		860		0.0	%		-100.0	%
Total noninterest income	$	9,880	$	8,071	$	7,726	$	7,357	$	8,438		22.4	%		17.1	%

Noninterest expense for the third quarter increased $1.1 million to $37.4 million from $36.3 million for the second quarter of 2025. Third quarter noninterest expense was up 2.8% from the second quarter primarily due to a $0.6 million gain on sale of an other-real-estate-owned property during the second quarter. Additionally, professional fees increased $0.3 million, and occupancy and equipment increased $0.2 million. The efficiency ratio for the third quarter was 52.65%, compared with 55.74% for the second quarter of 2025.

	For the Three Months Ended (in thousands)													Percentage Change
	Sep 30,		Jun 30,			Mar 31,			Dec 31,			Sep 30,		Q3-25			Q3-25
	2025		2025			2025			2024			2024		vs. Q2-25			vs. Q3-24
Noninterest Expense
Salaries and employee benefits	$	22,163	$	22,069		$	20,972		$	20,498		$	20,851		0.4	%		6.3	%
Occupancy and equipment		4,507		4,344			4,450			4,503			4,499		3.8	%		0.2	%
Data processing		3,860		3,727			3,787			3,800			3,839		3.6	%		0.5	%
Professional fees		1,978		1,725			1,468			1,821			1,492		14.7	%		32.6	%
Supplies and communication		423		515			517			551			538		-17.9	%		-21.4	%
Advertising and promotion		712		798			585			821			631		-10.8	%		12.8	%
All other operating expenses		3,665		3,567			3,175			3,847			2,875		2.7	%		27.5	%
Subtotal		37,308		36,745			34,954			35,841			34,725		1.5	%		7.4	%

Other real estate owned expense (income)		17		(461	)		41			(1,588	)		77		-103.7	%		77.9	%
Repossessed personal property expense (income)		32		63			(11	)		281			278		-49.2	%		-88.5	%
Total noninterest expense	$	37,357	$	36,347		$	34,984		$	34,534		$	35,080		2.8	%		6.5	%

Hanmi recorded a provision for income taxes of $9.4 million for the third quarter of 2025, compared with $6.1 million for the second quarter of 2025, representing an effective tax rate of 29.9% and 28.8%, respectively. For the nine months ended September 30, 2025 and 2024, the provision for income taxes was $23.0 million and $18.8 million, representing an effective tax rate of 29.5% and 29.7%, respectively.

Financial Position

Total assets at September 30, 2025 were $7.86 billion, unchanged from $7.86 billion at June 30, 2025. Nonetheless, changes in assets included a $164.4 million decrease in cash, a $43.1 million decrease in loans held for sale, a $219.3 million increase in loans, net of allowance for credit losses, and a $13.4 million decrease in securities available for sale.

Loans held-for-sale were $6.5 million at September 30, 2025, down from $49.6 million at June 30, 2025. At the end of the third quarter, loans held-for-sale consisted solely of the guaranteed portion of SBA 7(a) loans. At the end of the second quarter, loans held-for-sale included $41.9 million of residential mortgage loans as well as $7.7 million of the guaranteed portion of SBA 7(a) loans.

	As of (in thousands)										Percentage Change
	Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,		Q3-25			Q3-25
	2025		2025		2025		2024		2024		vs. Q2-25			vs. Q3-24
Loan Portfolio
Commercial real estate loans	$	4,015,291	$	3,948,922	$	3,975,651	$	3,949,622	$	3,932,088		1.7	%		2.1	%
Residential/consumer loans		1,043,577		993,869		979,536		951,302		939,285		5.0	%		11.1	%
Commercial and industrial loans		1,052,522		917,995		854,406		863,431		879,092		14.7	%		19.7	%
Equipment finance		416,869		445,171		472,596		487,022		507,279		-6.4	%		-17.8	%
Loans receivable		6,528,259		6,305,957		6,282,189		6,251,377		6,257,744		3.5	%		4.3	%
Loans held for sale		6,512		49,611		11,831		8,579		54,336		-86.9	%		-88.0	%
Total	$	6,534,771	$	6,355,568	$	6,294,020	$	6,259,956	$	6,312,080		2.8	%		3.5	%

	As of
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
	2025			2025			2025			2024			2024
Composition of Loan Portfolio
Commercial real estate loans		61.4	%		62.2	%		63.1	%		63.1	%		62.3	%
Residential/consumer loans		16.0	%		15.6	%		15.6	%		15.2	%		14.9	%
Commercial and industrial loans		16.1	%		14.4	%		13.6	%		13.8	%		13.9	%
Equipment finance		6.4	%		7.0	%		7.5	%		7.8	%		8.0	%
Loans receivable		99.9	%		99.2	%		99.8	%		99.9	%		99.1	%
Loans held for sale		0.1	%		0.8	%		0.2	%		0.1	%		0.9	%
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

New loan production was $570.8 million for the third quarter of 2025 with a weighted average rate of 6.91%, while payoffs were $143.0 million during the quarter at an average interest rate of 7.16%.

Commercial and industrial loan production for the third quarter of 2025 was $211.5 million. Commercial real estate loan production was $176.8 million. Residential mortgage loan production was $103.2 million. SBA loan production was $44.9 million, and equipment finance production was $34.3 million.

	For the Three Months Ended (in thousands)
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
	2025			2025			2025			2024			2024
New Loan Production
Commercial real estate loans	$	176,826		$	111,993		$	146,606		$	146,716		$	110,246
Residential/consumer loans		103,247			83,761			55,000			40,225			40,758
Commercial and industrial loans		211,454			53,444			42,344			60,159			105,086
SBA loans		44,931			46,829			55,242			49,740			51,616
Equipment finance		34,315			33,567			46,749			42,168			40,066
Subtotal		570,773			329,594			345,941			339,008			347,772


Payoffs		(142,963	)		(119,139	)		(125,102	)		(137,933	)		(77,603	)
Amortization		(60,939	)		(151,357	)		(90,743	)		(60,583	)		(151,674	)
Loan sales		(100,452	)		(35,388	)		(42,193	)		(67,852	)		(43,868	)
Net line utilization		(39,497	)		12,435			(53,901	)		(75,651	)		9,426
Charge-offs & OREO		(4,620	)		(12,377	)		(3,190	)		(3,356	)		(2,668	)

Loans receivable-beginning balance		6,305,957			6,282,189			6,251,377			6,257,744			6,176,359
Loans receivable-ending balance	$	6,528,259		$	6,305,957		$	6,282,189		$	6,251,377		$	6,257,744

Deposits were $6.77 billion at the end of the third quarter of 2025, up $37.5 million, or 0.6%, from $6.73 billion at the end of the prior quarter. Driving the change was a $57.9 million increase in time deposits and a $1.2 million increase in money market and savings deposits, partially offset by demand deposit decreases of $22.0 million. Noninterest-bearing demand deposits represented 30.8% of total deposits at September 30, 2025 and the ratio of average loans to average deposits for the third quarter was 94.6%.

	As of (in thousands)										Percentage Change
	Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,		Q3-25			Q3-25
	2025		2025		2025		2024		2024		vs. Q2-25			vs. Q3-24
Deposit Portfolio
Demand: noninterest-bearing	$	2,087,132	$	2,105,369	$	2,066,659	$	2,096,634	$	2,051,790		-0.9	%		1.7	%
Demand: interest-bearing		86,834		90,172		80,790		80,323		79,287		-3.7	%		9.5	%
Money market and savings		2,094,028		2,092,847		2,073,943		1,933,535		1,898,834		0.1	%		10.3	%
Time deposits		2,498,645		2,440,734		2,398,083		2,325,284		2,373,310		2.4	%		5.3	%
Total deposits	$	6,766,639	$	6,729,122	$	6,619,475	$	6,435,776	$	6,403,221		0.6	%		5.7	%

	As of
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
	2025			2025			2025			2024			2024
Composition of Deposit Portfolio
Demand: noninterest-bearing		30.8	%		31.3	%		31.2	%		32.6	%		32.0	%
Demand: interest-bearing		1.3	%		1.3	%		1.2	%		1.2	%		1.2	%
Money market and savings		31.0	%		31.1	%		31.3	%		30.0	%		29.7	%
Time deposits		36.9	%		36.3	%		36.3	%		36.2	%		37.1	%
Total deposits		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Stockholders' equity at September 30, 2025 was $779.6 million, up $16.8 million from $762.8 million at June 30, 2025. The increase included net income, net of dividends paid, of $14.0 million for the third quarter. In addition, the increase in stockholders' equity included a $6.4 million decrease in unrealized after-tax losses on securities available for sale due to changes in interest rates during the third quarter of 2025. Hanmi also repurchased 199,698 shares of common stock at an average share price of $23.45 with an aggregate cost of $4.7 million, during the quarter. At September 30, 2025, 910,802 shares remain under Hanmi's share repurchase program. Tangible common stockholders' equity was $768.5 million, or 9.80% of tangible assets at September 30, 2025 compared with $751.8 million, or 9.58% 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 September 30, 2025, Hanmi's preliminary common equity tier 1 capital ratio was 12.00% and its total risk-based capital ratio was 15.05%, compared with 12.12% and 15.20%, respectively, at the end of the prior quarter.

	As of															Ratio Change
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Q3-25		Q3-25
	2025			2025			2025			2024			2024			vs. Q2-25		vs. Q3-24
Regulatory Capital ratios⁽¹⁾
Hanmi Financial
Total risk-based capital		15.05	%		15.20	%		15.28	%		15.24	%		15.03	%		-0.15		0.02
Tier 1 risk-based capital		12.33	%		12.46	%		12.46	%		12.46	%		12.29	%		-0.13		0.04
Common equity tier 1 capital		12.00	%		12.12	%		12.12	%		12.11	%		11.95	%		-0.12		0.05
Tier 1 leverage capital ratio		10.64	%		10.63	%		10.67	%		10.63	%		10.56	%		0.01		0.08
Hanmi Bank
Total risk-based capital		14.28	%		14.39	%		14.47	%		14.43	%		14.27	%		-0.11		0.01
Tier 1 risk-based capital		13.20	%		13.32	%		13.34	%		13.36	%		13.23	%		-0.12		-0.03
Common equity tier 1 capital		13.20	%		13.32	%		13.34	%		13.36	%		13.23	%		-0.12		-0.03
Tier 1 leverage capital ratio		11.46	%		11.43	%		11.49	%		11.47	%		11.43	%		0.03		0.03

⁽¹⁾Preliminary ratios for September 30, 2025

Asset Quality

Loans 30 to 89 days past due and still accruing were 0.18% of loans at the end of the third quarter of 2025, compared with 0.17% at the end of the prior quarter.

Criticized loans totaled $45.4 million at September 30, 2025, down from $46.6 million at the end of the prior quarter. The $1.2 million decrease resulted from a $5.3 million decrease in classified loans, offset by a $4.1 million increase in special mention loans. The $4.1 million increase in special mention loans included downgrades of $4.3 million partially offset by amortization/paydown of $0.2 million. The $5.3 million decrease in classified loans included a $2.0 million transfer to other-real-estate-owned, $2.4 million of equipment financing charge-offs, $1.2 million of amortization/paydowns, $3.8 million of loan upgrades and, $2.8 million of payoffs, offset by $7.1 million in additions. Additions included newly classified equipment financing agreements of $3.1 million and loan downgrades of $4.0 million.

Nonperforming loans were $19.4 million at September 30, 2025, down from $26.0 million at the end of the prior quarter. The $6.6 million decrease primarily reflected loan upgrades of $3.8 million, equipment financing agreement charge-offs of $2.4 million, $2.0 million transferred to other-real-estate-owned, $1.1 million in paydowns, and pay-offs of $0.7 million. Additions included $0.5 million of loans and $3.1 million of equipment financing agreements.

Nonperforming assets were $21.4 million at September 30, 2025, down from $26.0 million at the end of the prior quarter, which reflected the decrease in nonperforming loans, offset by a $2.0 million increase in other-real-estate-owned due to the addition of two hospitality industry commercial real estate loans. As a percentage of total assets, nonperforming assets were 0.27% at September 30, 2025, and 0.33% at the end of the prior quarter.

Gross charge-offs for the third quarter of 2025 were $2.6 million, compared with $12.4 million for the preceding quarter. The decrease in gross charge-offs was primarily due to a $8.6 million charge-off on a commercial real estate loan designated as nonaccrual during the second quarter of 2025. Charge-offs during the third quarter included $2.4 million of equipment financing agreements. Recoveries of previously charged-off loans were $3.1 million in the third quarter of 2025, which included a $2.0 million recovery on a previously charged-off loan in the healthcare industry and $0.8 million of recoveries on equipment financing agreements. As a result, there were $0.5 million of net recoveries for the third quarter of 2025, compared to net charge-offs of $11.4 million for the prior quarter.

The allowance for credit losses was $69.8 million at September 30, 2025, compared with $66.8 million at June 30, 2025. Collectively evaluated allowances increased $2.7 million and specific allowances for loans increased $0.3 million. The increase in the collectively evaluated allowance was due to an increase in qualitative loss factors. The ratio of the allowance for credit losses to loans was 1.07% at September 30, 2025 and 1.06% at the end of the prior quarter.

	As of or for the Three Months Ended (in thousands)															Amount Change
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Q3-25			Q3-25
	2025			2025			2025			2024			2024			vs. Q2-25			vs. Q3-24
Asset Quality Data and Ratios

Delinquent loans:
Loans, 30 to 89 days past due and still accruing	$	11,560		$	10,953		$	17,312		$	18,454		$	15,027		$	607		$	(3,467	)
Delinquent loans to total loans		0.18	%		0.17	%		0.28	%		0.30	%		0.24	%		0.00			(0.06	)

Criticized loans:
Special mention	$	16,775		$	12,700		$	118,380		$	139,613		$	131,575		$	4,075		$	(114,800	)
Classified		28,590			33,857			46,519			25,683			28,377			(5,267	)		213
Total criticized loans⁽¹⁾	$	45,365		$	46,557		$	164,899		$	165,296		$	159,952		$	(1,192	)	$	(114,587	)

Criticized loans to total loans		0.69	%		0.74	%		2.62	%		2.64	%		2.56	%		(0.05	)		(1.87	)

Nonperforming assets:
Nonaccrual loans	$	19,369		$	25,967		$	35,458		$	14,272		$	15,248		$	(6,598	)	$	4,121
Loans 90 days or more past due and still accruing		-			-			112			-			242			-			(242	)
Nonperforming loans⁽²⁾		19,369			25,967			35,570			14,272			15,490			(6,598	)		3,879
Other real estate owned, net		1,995			-			117			117			772			1,995			1,223
Nonperforming assets⁽³⁾	$	21,364		$	25,967		$	35,687		$	14,389		$	16,262		$	(4,603	)	$	5,102

Nonperforming assets to assets⁽²⁾		0.27	%		0.33	%		0.46	%		0.19	%		0.21	%		-0.06			0.06
Nonperforming loans to total loans		0.30	%		0.41	%		0.57	%		0.23	%		0.25	%		-0.11			0.05

⁽¹⁾ Includes nonaccrual loans of $19.4 million, $24.1 million, $34.4 million, $13.4 million, and $13.6 million as of Q3-25, Q2-25, Q1-25, Q4-24, and Q3-24, respectively.
⁽²⁾Excludes a $27.2 million nonperforming loan held-for-sale as of September 30, 2024.
⁽³⁾ Excludes repossessed personal property of $0.4 million, $0.6 million, $0.7 million, $0.6 million, and $1.2 million as of Q3-25, Q2-25, Q1-25, Q4-24, and Q3-24, respectively.

	As of or for the Three Months Ended (in thousands)
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
	2025			2025			2025			2024			2024
Allowance for credit losses related to loans:
Balance at beginning of period	$	66,756		$	70,597		$	70,147		$	69,163		$	67,729
Credit loss expense (recovery) on loans		2,543			7,523			2,396			855			2,310
Net loan (charge-offs) recoveries		482			(11,364	)		(1,946	)		129			(876	)
Balance at end of period	$	69,781		$	66,756		$	70,597		$	70,147		$	69,163

Net loan charge-offs (recoveries) to average loans ⁽¹⁾		-0.03	%		0.73	%		0.13	%		-0.01	%		0.06	%
Allowance for credit losses to loans		1.07	%		1.06	%		1.12	%		1.12	%		1.11	%

Allowance for credit losses related to off-balance sheet items:
Balance at beginning of period	$	2,506		$	2,399		$	2,074		$	1,984		$	2,010
Credit loss expense (recovery) on off-balance sheet items		(399	)		107			325			90			(26	)
Balance at end of period	$	2,107		$	2,506		$	2,399		$	2,074		$	1,984

Unused commitments to extend credit	$	952,475		$	915,847		$	896,282		$	782,587		$	739,975

⁽¹⁾Annualized

Corporate Developments

On July 24, 2025, Hanmi's Board of Directors declared a cash dividend on its common stock for the 2025 third quarter of $0.27 per share. Hanmi paid the dividend on August 20, 2025, to stockholders of record as of the close of business on August 5, 2025.

Earnings Conference Call

Hanmi Bank will host its third quarter 2025 earnings conference call today, October 21, 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, five loan production offices and three loan centers 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 investor sentiment or 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 and retaliatory responses;
the impact of the current federal government shutdown, including our ability to effect sales of small business administration loans;
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 economic assumptions and 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)

	September 30,			June 30,			Percentage			September 30,			Percentage
	2025			2025			Change			2024			Change
Assets
Cash and due from banks	$	215,654		$	380,050			-43.3	%	$	287,767			-25.1	%
Securities available for sale, at fair value		904,721			918,094			-1.5	%		908,921			-0.5	%
Loans held for sale, at the lower of cost or fair value		6,512			49,611			-86.9	%		54,336			-88.0	%
Loans receivable, net of allowance for credit losses		6,458,478			6,239,201			3.5	%		6,188,581			4.4	%
Accrued interest receivable		23,986			23,749			1.0	%		21,955			9.3	%
Premises and equipment, net		20,340			20,607			-1.3	%		21,371			-4.8	%
Customers' liability on acceptances		342			214			59.8	%		67			410.4	%
Servicing assets		6,484			6,420			1.0	%		6,683			-3.0	%
Goodwill and other intangible assets, net		11,031			11,031			0.0	%		11,031			0.0	%
Federal Home Loan Bank ("FHLB") stock, at cost		16,385			16,385			0.0	%		16,385			0.0	%
Bank-owned life insurance		56,382			56,985			-1.1	%		56,851			-0.8	%
Prepaid expenses and other assets		136,416			140,016			-2.6	%		138,351			-1.4	%
Total assets	$	7,856,731		$	7,862,363			-0.1	%	$	7,712,299			1.9	%

Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	$	2,087,132		$	2,105,369			-0.9	%	$	2,051,790			1.7	%
Interest-bearing		4,679,507			4,623,753			1.2	%		4,351,431			7.5	%
Total deposits		6,766,639			6,729,122			0.6	%		6,403,221			5.7	%
Accrued interest payable		34,219			30,567			11.9	%		52,613			-35.0	%
Bank's liability on acceptances		342			214			59.8	%		67			410.4	%
Borrowings		62,500			127,500			-51.0	%		300,000			-79.2	%
Subordinated debentures		130,309			130,960			-0.5	%		130,478			-0.1	%
Accrued expenses and other liabilities		83,172			81,166			2.5	%		89,211			-6.8	%
Total liabilities		7,077,181			7,099,529			-0.3	%		6,975,590			1.5	%

Stockholders' equity:
Common stock		34			34			0.0	%		34			0.0	%
Additional paid-in capital		593,768			592,825			0.2	%		589,567			0.7	%
Accumulated other comprehensive (loss)		(47,959	)		(54,511	)		12.0	%		(55,140	)		13.0	%
Retained earnings		381,183			367,251			3.8	%		340,718			11.9	%
Less treasury stock		(147,476	)		(142,765	)		-3.3	%		(138,470	)		-6.5	%
Total stockholders' equity		779,550			762,834			2.2	%		736,709			5.8	%
Total liabilities and stockholders' equity	$	7,856,731		$	7,862,363			-0.1	%	$	7,712,299			1.9	%

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)

(Dollars in thousands, except share and per share data)

	Three Months Ended
	September 30,		June 30,		Percentage			September 30,		Percentage
	2025		2025		Change			2024		Change
Interest and dividend income:
Interest and fees on loans receivable	$	95,691	$	92,589		3.4	%	$	92,182		3.8	%
Interest on securities		6,592		6,261		5.3	%		5,523		19.4	%
Dividends on FHLB stock		357		354		0.8	%		356		0.3	%
Interest on deposits in other banks		2,586		2,129		21.5	%		2,356		9.8	%
Total interest and dividend income		105,226		101,333		3.8	%		100,417		4.8	%
Interest expense:
Interest on deposits		42,244		41,924		0.8	%		47,153		-10.4	%
Interest on borrowings		324		684		-52.6	%		1,561		-79.2	%
Interest on subordinated debentures		1,579		1,586		-0.4	%		1,652		-4.4	%
Total interest expense		44,147		44,194		-0.1	%		50,366		-12.3	%
Net interest income before credit loss expense		61,079		57,139		6.9	%		50,051		22.0	%
Credit loss expense		2,145		7,631		-71.9	%		2,286		-6.2	%
Net interest income after credit loss expense		58,934		49,508		19.0	%		47,765		23.4	%
Noninterest income:
Service charges on deposit accounts		2,160		2,169		-0.4	%		2,311		-6.5	%
Trade finance and other service charges and fees		1,551		1,461		6.2	%		1,254		23.7	%
Gain on sale of Small Business Administration ("SBA") loans		1,857		2,160		-14.0	%		1,544		20.3	%
Other operating income		4,312		2,281		89.0	%		3,329		29.5	%
Total noninterest income		9,880		8,071		22.4	%		8,438		17.1	%
Noninterest expense:
Salaries and employee benefits		22,163		22,069		0.4	%		20,851		6.3	%
Occupancy and equipment		4,507		4,344		3.8	%		4,499		0.2	%
Data processing		3,860		3,727		3.6	%		3,839		0.5	%
Professional fees		1,978		1,725		14.7	%		1,492		32.6	%
Supplies and communications		423		515		-17.9	%		538		-21.4	%
Advertising and promotion		712		798		-10.8	%		631		12.8	%
Other operating expenses		3,714		3,169		17.2	%		3,230		15.0	%
Total noninterest expense		37,357		36,347		2.8	%		35,080		6.5	%
Income before tax		31,457		21,232		48.2	%		21,123		48.9	%
Income tax expense		9,396		6,115		53.7	%		6,231		50.8	%
Net income	$	22,061	$	15,117		45.9	%	$	14,892		48.1	%

Basic earnings per share:	$	0.73	$	0.50				$	0.49
Diluted earnings per share:	$	0.73	$	0.50				$	0.49

Weighted-average shares outstanding:
Basic		29,830,475		29,948,836					29,968,004
Diluted		29,880,865		30,054,456					30,033,679
Common shares outstanding		29,975,371		30,176,568					30,196,755

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)

(Dollars in thousands, except share and per share data)

	Nine Months Ended
	September 30,		September 30,		Percentage
	2025		2024		Change
Interest and dividend income:
Interest and fees on loans receivable	$	279,168	$	274,608		1.7	%
Interest on securities		19,022		15,717		21.0	%
Dividends on FHLB stock		1,071		1,075		-0.4	%
Interest on deposits in other banks		6,554		7,270		-9.8	%
Total interest and dividend income		305,815		298,670		2.4	%
Interest expense:
Interest on deposits		124,727		139,286		-10.5	%
Interest on borrowings		3,032		5,112		-40.7	%
Interest on subordinated debentures		4,746		4,948		-4.1	%
Total interest expense		132,505		149,346		-11.3	%
Net interest income before credit loss expense		173,310		149,324		16.1	%
Credit loss expense		12,496		3,474		259.7	%
Net interest income after credit loss expense		160,814		145,850		10.3	%
Noninterest income:
Service charges on deposit accounts		6,546		7,189		-8.9	%
Trade finance and other service charges and fees		4,409		3,945		11.8	%
Gain on sale of Small Business Administration ("SBA") loans		6,018		4,669		28.9	%
Other operating income		8,703		8,425		3.3	%
Total noninterest income		25,676		24,228		6.0	%
Noninterest expense:
Salaries and employee benefits		65,204		62,870		3.7	%
Occupancy and equipment		13,301		13,643		-2.5	%
Data processing		11,374		11,076		2.7	%
Professional fees		5,171		5,134		0.7	%
Supplies and communications		1,455		1,710		-14.9	%
Advertising and promotion		2,094		2,207		-5.1	%
Other operating expenses		10,090		10,160		-0.7	%
Total noninterest expense		108,689		106,800		1.8	%
Income before tax		77,801		63,278		23.0	%
Income tax expense		22,951		18,772		22.3	%
Net income	$	54,850	$	44,506		23.2	%

Basic earnings per share:	$	1.82	$	1.47
Diluted earnings per share:	$	1.82	$	1.47

Weighted-average shares outstanding:
Basic		29,905,265		30,048,748
Diluted		29,955,366		30,117,269
Common shares outstanding		29,975,371		30,196,755

Hanmi Financial Corporation and Subsidiaries

Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)

(Dollars in thousands)

	Three Months Ended
	September 30, 2025								June 30, 2025								September 30, 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⁾	$	6,304,435		$	95,691		6.03	%	$	6,257,741		$	92,589		5.93	%	$	6,112,324		$	92,182		6.00	%
Securities ⁽²⁾		985,888			6,592		2.70	%		993,975			6,261		2.55	%		986,041			5,523		2.27	%
FHLB stock		16,385			358		8.65	%		16,385			354		8.65	%		16,385			356		8.65	%
Interest-bearing deposits in other banks		239,993			2,585		4.27	%		200,266			2,129		4.26	%		183,027			2,356		5.12	%
Total interest-earning assets		7,546,701			105,226		5.54	%		7,468,367			101,333		5.44	%		7,297,777			100,417		5.48	%

Noninterest-earning assets:
Cash and due from banks		53,144								53,977								54,843
Allowance for credit losses		(67,851	)							(70,222	)							(67,906	)
Other assets		252,039								250,241								251,421

Total assets	$	7,784,033							$	7,702,363							$	7,536,135

Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	86,839		$	38		0.17	%	$	81,308		$	29		0.15	%	$	83,647		$	31		0.15	%
Money market and savings		2,122,967			17,238		3.22	%		2,109,221			17,342		3.30	%		1,885,799			17,863		3.77	%
Time deposits		2,494,285			24,968		3.97	%		2,434,659			24,553		4.05	%		2,427,737			29,259		4.79	%
Total interest-bearing deposits		4,704,091			42,244		3.56	%		4,625,188			41,924		3.64	%		4,397,183			47,153		4.27	%
Borrowings		27,772			324		4.63	%		60,134			684		4.58	%		143,479			1,561		4.33	%
Subordinated debentures		130,766			1,579		4.83	%		130,880			1,586		4.84	%		130,403			1,652		5.07	%
Total interest-bearing liabilities		4,862,629			44,147		3.60	%		4,816,202			44,194		3.68	%		4,671,065			50,366		4.29	%

Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,960,331								1,934,985								1,908,833
Other liabilities		142,592								140,053								171,987
Stockholders' equity		818,481								811,123								784,250

Total liabilities and stockholders' equity	$	7,784,033							$	7,702,363							$	7,536,135

Net interest income				$	61,079							$	57,139							$	50,051

Cost of deposits							2.51	%							2.56	%							2.97	%
Net interest spread (taxable equivalent basis)							1.94	%							1.76	%							1.19	%
Net interest margin (taxable equivalent basis)							3.22	%							3.07	%							2.74	%



⁽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.

Hanmi Financial Corporation and Subsidiaries

Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)

(Dollars in thousands)

	Nine Months Ended
	September 30, 2025								September 30, 2024
				Interest		Average						Interest		Average
	Average			Income /		Yield /			Average			Income /		Yield /
	Balance			Expense		Rate			Balance			Expense		Rate
Assets
Interest-earning assets:
Loans receivable ⁽¹⁾	$	6,250,990		$	279,168		5.97	%	$	6,113,214		$	274,608		6.00	%
Securities ⁽²⁾		993,730			19,022		2.58	%		978,439			15,717		2.17	%
FHLB stock		16,385			1,071		8.74	%		16,385			1,077		8.77	%
Interest-bearing deposits in other banks		205,663			6,554		4.26	%		188,290			7,268		5.16	%
Total interest-earning assets		7,466,768			305,815		5.48	%		7,296,328			298,670		5.47	%

Noninterest-earning assets:
Cash and due from banks		53,596								56,217
Allowance for credit losses		(69,233	)							(68,305	)
Other assets		250,485								249,517

Total assets	$	7,701,616							$	7,533,757

Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	82,533		$	95		0.15	%	$	85,158		$	92		0.14	%
Money market and savings		2,090,118			51,016		3.26	%		1,849,053			51,740		3.74	%
Time deposits		2,425,309			73,616		4.06	%		2,462,779			87,454		4.74	%
Total interest-bearing deposits		4,597,960			124,727		3.63	%		4,396,990			139,286		4.23	%
Borrowings		88,561			3,032		4.58	%		158,419			5,112		4.31	%
Subordinated debentures		130,788			4,746		4.84	%		130,244			4,948		5.06	%
Total interest-bearing liabilities		4,817,309			132,505		3.68	%		4,685,653			149,346		4.26	%

Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,930,659								1,904,611
Other liabilities		142,425								166,372
Stockholders' equity		811,223								777,121

Total liabilities and stockholders' equity	$	7,701,616							$	7,533,757

Net interest income				$	173,310							$	149,324

Cost of deposits							2.55	%							2.95	%
Net interest spread (taxable equivalent basis)							1.80	%							1.21	%
Net interest margin (taxable equivalent basis)							3.11	%							2.74	%


⁽¹⁾ Includes average loans held for sale
⁽²⁾ Amounts 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)

	September 30,			June 30,			March 31,			December 31,			September 30,
Hanmi Financial Corporation and Subsidiaries	2025			2025			2025			2024			2024
Assets	$	7,856,731		$	7,862,363		$	7,729,035		$	7,677,925		$	7,712,299
Less goodwill and other intangible assets		(11,031	)		(11,031	)		(11,031	)		(11,031	)		(11,031	)
Tangible assets	$	7,845,700		$	7,851,332		$	7,718,004		$	7,666,894		$	7,701,268

Stockholders' equity ⁽¹⁾	$	779,550		$	762,834		$	751,485		$	732,174		$	736,709
Less goodwill and other intangible assets		(11,031	)		(11,031	)		(11,031	)		(11,031	)		(11,031	)
Tangible stockholders' equity ⁽¹⁾	$	768,519		$	751,803		$	740,454		$	721,143		$	725,678

Stockholders' equity to assets		9.92	%		9.70	%		9.72	%		9.54	%		9.55	%
Tangible common equity to tangible assets⁽¹⁾		9.80	%		9.58	%		9.59	%		9.41	%		9.42	%

Common shares outstanding		29,975,371			30,176,568			30,233,514			30,195,999			30,196,755
Tangible common equity per common share	$	25.64		$	24.91		$	24.49		$	23.88		$	24.03


⁽¹⁾There were no preferred shares outstanding at the periods indicated.

Preprovision Net Revenue

Preprovision net revenue 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 revenue, management can better understand the Company's profitability and make more informed strategic decisions. Preprovision net revenue is calculated adding income tax expense and credit loss expense to net income. Management believes this financial measure highlights the Company's net revenue activities and operational efficiency, excluding unpredictable credit loss expense.

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

Preprovision Net Revenue (Unaudited)

(In thousands, except percentages)

											Percentage Change
	September 30,		June 30,		March 31,		December 31,		September 30,		Q3-25			Q3-25
Hanmi Financial Corporation and Subsidiaries	2025		2025		2025		2024		2024		vs. Q2-25			vs. Q3-24
Net income	$	22,061	$	15,117	$	17,672	$	17,695	$	14,892
Add back:
Credit loss expense		2,145		7,631		2,721		945		2,286
Income tax expense		9,396		6,115		7,441		7,632		6,231
Preprovision net revenue	$	33,602	$	28,863	$	27,834	$	26,272	$	23,409		16.4	%		43.5	%

¹ See Preprovision Net Revenue provided at the end of this news release.

² See Non-GAAP Financial Measures provided at the end of this news release.

Hanmi Reports 2025 Third Quarter Results