Hanmi Financial Corporation Reports Q2 2025 Results

Hanmi Financial Corporation, the parent company of Hanmi Bank, has released its financial results for the second quarter of 2025. The report highlights a mix of solid operational performance and some challenges, particularly in credit loss expenses.

Financial Highlights

For the second quarter of 2025, Hanmi reported a net income of $15.1 million, or $0.50 per diluted share, down from $17.7 million, or $0.58 per diluted share, in the first quarter. The return on average assets was 0.79%, and the return on average equity was 7.48%, both showing a decline from the previous quarter. The net interest margin improved slightly to 3.07% from 3.02% in Q1 2025.

Business and Operational Highlights

CEO Bonnie Lee emphasized the company's strong operational metrics, including a 3.7% growth in preprovision net revenue and a 1.6% annualized growth in loans. The company also saw a 1.7% increase in deposits, with noninterest-bearing demand deposits accounting for over 30% of total deposits. Asset quality improved significantly, with criticized loans dropping by 71.8% and nonaccrual loans falling by 26.8%.

Strategic Initiatives and Corporate Developments

Hanmi's Board of Directors declared a cash dividend of $0.27 per share for the second quarter, paid on May 21, 2025. The company also repurchased 70,000 shares of common stock at an average price of $23.26 per share. Hanmi's capital position remains strong, with a tangible common equity to tangible assets ratio of 9.58% and a common equity tier 1 capital ratio of 12.12%.

Management's Perspective

CEO Bonnie Lee noted that while the second quarter net income was impacted by credit loss expenses, the overall asset quality showed significant improvement. She expressed optimism about the strength of the loan pipeline and the company's focus on deepening client relationships and expanding market presence.

Future Outlook

Looking ahead, Hanmi is encouraged by the strength of its loan pipeline and remains focused on sustainable long-term growth. The company aims to leverage its balance sheet and expand its market presence while maintaining strong asset quality.

SEC Filing: HANMI FINANCIAL CORP [ HAFC ] - 8-K - Jul. 22, 2025