EXHIBIT 99.1

Hanmi Reports 2024 First Quarter Results

LOS ANGELES, April 23, 2024 (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 2024.

Net income for the first quarter of 2024 was $15.2 million, or $0.50 per diluted share, compared with $18.6 million, or $0.61 per diluted share, for the fourth quarter of 2023. The return on average assets for the first quarter was 0.81% and the return on average equity was 7.90%, compared with a return on average assets of 0.99% and the return on average equity of 9.70% for the fourth quarter of 2023.

CEO Commentary
“Our first quarter performance highlights the continued execution of our strategy of diversifying our loan portfolio and deposit franchise,” said Bonnie Lee, President and Chief Executive Officer of Hanmi. “Our relationship banking model enabled us to attract new customers, expanding our market share and driving a 6% annualized increase in deposits and a nearly 4% net increase in our C&I portfolio in the first quarter. We remained disciplined and selective in our underwriting practices, which have resulted in excellent asset quality.”

“The Hanmi franchise is robust and well positioned to successfully navigate a dynamic economic environment. Our balance sheet is solid with ample liquidity, and we have strong credit quality and excellent capital ratios. Furthermore, we have a healthy loan pipeline, stable core deposits, and well-managed expenses. Looking ahead, we will continue to optimize our branch network through a consolidation of existing offices and by entering new markets this year. I am grateful to our team of highly skilled bankers who continually build enduring banking relationships with our customers and create value for our shareholders.”

First Quarter 2024 Highlights:        

For more information about Hanmi, please see the Q1 2024 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, Q1-24 Q1-24
 2024 2023 2023 2023 2023 vs. Q4-23 vs. Q1-23
              
Net income$15,164  $18,633  $18,796  $20,620  $21,991  $(3,469) $(6,827)
Net income per diluted common share$0.50  $0.61  $0.62  $0.67  $0.72  $(0.11) $(0.22)
              
Assets$7,512,046  $7,570,341  $7,350,140  $7,344,924  $7,434,130  $(58,295) $77,916 
Loans receivable$6,177,840  $6,182,434  $6,020,785  $5,965,171  $5,980,458  $(4,594) $197,382 
Deposits$6,376,060  $6,280,574  $6,260,072  $6,315,768  $6,201,038  $95,486  $175,022 
              
Return on average assets 0.81%  0.99%  1.00%  1.12%  1.21%  -0.18   -0.40 
Return on average stockholders' equity 7.90%  9.70%  9.88%  11.14%  12.19%  -1.80   -4.29 
              
Net interest margin 2.78%  2.92%  3.03%  3.11%  3.28%  -0.14   -0.50 
Efficiency ratio (1) 62.42%  58.86%  51.82%  54.11%  49.54%  3.56   12.88 
              
Tangible common equity to tangible assets (2) 9.23%  9.14%  8.89%  8.96%  8.77%  0.09   0.46 
Tangible common equity per common share (2)$22.86  $22.75  $21.45  $21.56  $21.30   0.11   1.56 
              
(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 decreased $2.4 million to $50.7 million from $53.1 million for the fourth quarter of 2023, down 4.7%. The decrease was primarily due to an increase in the cost of interest-bearing deposits, partially offset by an increase in interest-earning asset yields. The cost of interest-bearing deposits increased 33 basis points to 4.16% for the first quarter of 2024, from 3.83% for the fourth quarter of 2023. The increase in the cost of interest-bearing deposits was due to higher market interest rates and higher average balances. Average interest-bearing deposits were $4.41 billion for the first quarter, up 5.6% from $4.17 billion for the fourth quarter of 2023. The yield on average loans for the first quarter increased 12 basis points to 6.00%, from 5.88% for the fourth quarter of 2023. Average loans were $6.14 billion for the first quarter, up 1.1% from $6.07 billion for the fourth quarter of 2023. First quarter loan prepayment fees were $0.2 million, compared to $0.1 million for the fourth quarter of 2023. Net interest margin (taxable-equivalent) for the first quarter was 2.78%, compared with 2.92% for the fourth quarter of 2023.

 As of or For the Three Months Ended (in thousands) Percentage Change
 Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Q1-24 Q1-24
Net Interest Income2024 2023 2023 2023 2023 vs. Q4-23 vs. Q1-23
              
Interest and fees on loans receivable(1)$91,674  $89,922  $85,398  $83,567  $80,923   1.9%  13.3%
Interest on securities 4,955   4,583   4,204   4,126   4,025   8.1%  23.1%
Dividends on FHLB stock 361   341   317   283   289   5.9%  24.9%
Interest on deposits in other banks 2,604   2,337   4,153   2,794   2,066   11.4%  26.0%
Total interest and dividend income$99,594  $97,183  $94,072  $90,770  $87,303   2.5%  14.1%
              
Interest on deposits 45,638   40,277   36,818   32,115   25,498   13.3%  79.0%
Interest on borrowings 1,655   2,112   753   1,633   2,369   -21.6%  -30.1%
Interest on subordinated debentures 1,646   1,654   1,646   1,600   1,583   -0.5%  4.0%
Total interest expense 48,939   44,043   39,217   35,348   29,450   11.1%  66.2%
Net interest income$50,655  $53,140  $54,855  $55,422  $57,853   -4.7%  -12.4%
              
(1)       Includes loans held for sale.
              
 For the Three Months Ended (in thousands) Percentage Change
 Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Q1-24 Q1-24
Average Earning Assets and Interest-bearing Liabilities2024 2023 2023 2023 2023 vs. Q4-23 vs. Q1-23
Loans receivable (1)$6,137,888  $6,071,644  $5,915,423  $5,941,071  $5,944,399   1.1%  3.3%
Securities 969,520   961,551   955,473   971,531   980,712   0.8%  -1.1%
FHLB stock 16,385   16,385   16,385   16,385   16,385   0.0%  0.0%
Interest-bearing deposits in other banks 201,724   181,140   317,498   230,974   192,902   11.4%  4.6%
Average interest-earning assets$7,325,517  $7,230,720  $7,204,779  $7,159,961  $7,134,398   1.3%  2.7%
              
Demand: interest-bearing$86,401  $86,679  $94,703  $99,057  $109,391   -0.3%  -21.0%
Money market and savings 1,815,085   1,669,973   1,601,826   1,463,304   1,453,569   8.7%  24.9%
Time deposits 2,507,830   2,417,803   2,438,112   2,403,685   2,223,615   3.7%  12.8%
Average interest-bearing deposits 4,409,316   4,174,455   4,134,641   3,966,046   3,786,575   5.6%  16.4%
Borrowings 162,418   205,951   120,381   196,776   268,056   -21.1%  -39.4%
Subordinated debentures 130,088   129,933   129,780   129,631   129,483   0.1%  0.5%
Average interest-bearing liabilities$4,701,822  $4,510,339  $4,384,802  $4,292,453  $4,184,114   4.2%  12.4%
              
Average Noninterest Bearing Deposits             
Demand deposits - noninterest bearing$1,921,189  $2,025,212  $2,136,156  $2,213,171  $2,324,413   -5.1%  -17.3%
              
(1)       Includes loans held for sale.
              
 For the Three Months Ended Yield/Rate Change
 Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Q1-24 Q1-24
Average Yields and Rates2024 2023 2023 2023 2023 vs. Q4-23 vs. Q1-23
Loans receivable(1) 6.00%  5.88%  5.73%  5.64%  5.51%  0.12   0.49 
Securities (2) 2.07%  1.93%  1.79%  1.73%  1.67%  0.14   0.40 
FHLB stock 8.87%  8.25%  7.67%  6.92%  7.16%  0.62   1.71 
Interest-bearing deposits in other banks 5.19%  5.12%  5.19%  4.85%  4.34%  0.07   0.85 
Interest-earning assets 5.47%  5.34%  5.19%  5.09%  4.96%  0.13   0.51 
              
Interest-bearing deposits 4.16%  3.83%  3.53%  3.25%  2.73%  0.33   1.43 
Borrowings 4.10%  4.07%  2.48%  3.33%  3.58%  0.03   0.51 
Subordinated debentures 5.06%  5.09%  5.07%  4.94%  4.89%  -0.03   0.17 
Interest-bearing liabilities 4.19%  3.88%  3.55%  3.30%  2.85%  0.31   1.34 
              
Net interest margin (taxable equivalent basis) 2.78%  2.92%  3.03%  3.11%  3.28%  -0.14   -0.50 
              
Cost of deposits 2.90%  2.58%  2.33%  2.08%  1.69%  0.32   1.21 
              
(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 $0.2 million, compared to a credit loss recovery of $2.9 million for the fourth quarter of 2023. First quarter credit loss expense included a $0.4 million credit loss expense for loan losses, offset by a $0.2 million recovery for off-balance sheet items. First quarter net loan charge-offs were $1.6 million, compared to fourth quarter of 2023 net loan recoveries of $5.0 million that included a $6.0 million recovery from a 2019 troubled loan relationship.

Noninterest income for the first quarter increased $1.1 million to $7.7 million, or 15.8%, from $6.7 million for the fourth quarter of 2023. The increase primarily reflected a $0.4 million gain on sale of residential mortgage loans, a $0.3 million valuation adjustment to bank-owned life insurance in the fourth quarter of 2023, and a $0.2 million increase in trade finance and other service charges and fees. Additionally, gains on sales of SBA loans remained stable at $1.5 million. The volume of SBA loans sold in the first quarter decreased to $25.6 million, from $29.9 million for the fourth quarter of 2023, while trade premiums increased to 7.23% for the first quarter, from 6.17% for the fourth quarter of 2023.

 For the Three Months Ended (in thousands) Percentage Change
 Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Q1-24 Q1-24
Noninterest Income2024 2023 2023 2023 2023 vs. Q4-23 vs. Q1-23
Service charges on deposit accounts$2,450  $2,391  $2,605  $2,571  $2,579   2.5%  -5.0%
Trade finance and other service charges and fees 1,414   1,245   1,155   1,173   1,258   13.6%  12.4%
Servicing income 712   772   838   825   742   -7.8%  -4.0%
Bank-owned life insurance income (expense) 304   (29)  280   271   270   1148.3%  12.6%
All other operating income 928   853   1,178   1,811   1,618   8.8%  -42.6%
Service charges, fees & other 5,808   5,232   6,056   6,651   6,467   11.0%  -10.2%
              
Gain on sale of SBA loans 1,482   1,448   1,172   1,212   1,869   2.3%  -20.7%
Gain on sale of mortgage loans 443   -   -   -   -   0.0%  0.0%
Net gain (loss) on sales of securities -   -   -   (1,871)  -   0.0%  0.0%
Gain (loss) on sale of bank premises -   -   4,000   -   -   0.0%  0.0%
Legal settlement -   -   -   1,943   -   0.0%  0.0%
Total noninterest income$7,733  $6,680  $11,228  $7,935  $8,336   15.8%  -7.2%
              

Noninterest expense for the first quarter increased by $1.2 million to $36.4 million from $35.2 million for the fourth quarter of 2023. The increase was primarily due to a $1.5 million increase in salaries and benefits due to seasonally higher employer taxes and benefits of $1.4 million. All other categories of noninterest expense combined, except for data processing, decreased $0.3 million in the first quarter from the fourth quarter of 2023. Data processing increased by less than $0.1 million. The efficiency ratio for the first quarter was 62.42%, compared with 58.86% for the fourth quarter of 2023, primarily due to the lower revenue and higher expenses.

 For the Three Months Ended (in thousands) Percentage Change
 Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Q1-24 Q1-24
 2024 2023 2023 2023 2023 vs. Q4-23 vs. Q1-23
Noninterest Expense             
Salaries and employee benefits$21,585  $20,062  $20,361  $20,365  $20,610   7.6%  4.7%
Occupancy and equipment 4,537   4,604   4,825   4,500   4,412   -1.5%  2.8%
Data processing 3,551   3,487   3,490   3,465   3,253   1.8%  9.2%
Professional fees 1,893   1,977   1,568   1,376   1,335   -4.2%  41.8%
Supplies and communication 601   613   552   638   676   -2.0%  -11.1%
Advertising and promotion 907   990   534   748   833   -8.4%  8.9%
All other operating expenses 3,160   3,252   2,852   3,243   1,957   -2.8%  61.5%
Subtotal 36,234   34,985   34,182   34,335   33,076   3.6%  9.5%
              
Other real estate owned expense (income) 22   15   16   4   (201)  46.7%  -110.9%
Repossessed personal property expense (income) 189   211   47   (59)  (84)  -10.4%  -325.0%
Total noninterest expense$36,445  $35,211  $34,245  $34,280  $32,791   3.5%  11.1%
              

Hanmi recorded a provision for income taxes of $6.6 million for the first quarter of 2024, compared with $8.8 million for the fourth quarter of 2023, representing an effective tax rate of 30.2% and 32.2%, respectively for each period. The 2024 first quarter provision included a $0.2 million charge for share-based compensation vesting and $0.2 million additional expense associated with amended state tax returns. The fourth quarter 2023 income tax expense included a $0.6 million charge to increase the valuation allowance on state net operating loss carryforwards.

Financial Position
Total assets at March 31, 2024 decreased 0.8%, or $58.3 million, to $7.51 billion from $7.57 billion at December 31, 2023. The sequential quarter decrease reflected a 15.3%, or $46.3 million, decrease in cash and due from banks, and an $8.0 million decrease in loans held for sale. The decrease in cash and $95.5 million increase in deposits supported a $152.5 million reduction in borrowings.

Loans receivable, before allowance for credit losses, were $6.18 billion at March 31, 2024, consistent with December 31, 2023. Loans held for sale, representing the guaranteed portion of SBA 7(a) loans, were $4.0 million at the end of the first quarter of 2024, down from $12.0 million at year-end 2023.

 As of (in thousands) Percentage Change
 Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Q1-24 Q1-24
 2024 2023 2023 2023 2023 vs. Q4-23 vs. Q1-23
Loan Portfolio             
Commercial real estate loans$3,878,677  $3,889,739  $3,773,015  $3,738,325  $3,784,176   -0.3%  2.5%
Residential/consumer loans 970,362   962,661   926,326   886,984   817,917   0.8%  18.6%
Commercial and industrial loans 774,851   747,819   728,792   753,456   778,149   3.6%  -0.4%
Equipment finance 553,950   582,215   592,652   586,406   600,216   -4.9%  -7.7%
Loans receivable 6,177,840   6,182,434   6,020,785   5,965,171   5,980,458   -0.1%  3.3%
Loans held for sale 3,999   12,013   11,767   7,293   3,652   -66.7%  9.5%
Total$6,181,839  $6,194,447  $6,032,552  $5,972,464  $5,984,110   -0.2%  3.3%
              
 As of  
 Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,    
 2024 2023 2023 2023 2023    
Composition of Loan Portfolio             
Commercial real estate loans 62.7%  62.8%  62.5%  62.6%  63.2%    
Residential/consumer loans 15.7%  15.5%  15.4%  14.9%  13.7%    
Commercial and industrial loans 12.5%  12.1%  12.1%  12.6%  13.0%    
Equipment finance 9.0%  9.4%  9.8%  9.8%  10.0%    
Loans receivable 99.9%  99.8%  99.8%  99.9%  99.9%    
Loans held for sale 0.1%  0.2%  0.2%  0.1%  0.1%    
Total 100.0%  100.0%  100.0%  100.0%  100.0%    
              

New loan production was $234.0 million for the first quarter of 2024 at an average rate of 8.02%, while $86.3 million of loans paid-off during the quarter at an average rate of 7.60%.

Commercial real estate loan production for the first quarter of 2024 was $60.1 million. Commercial and industrial loan production was $50.8 million, SBA loan production was $30.8 million, equipment finance production was $39.2 million, and residential mortgage loan production was $53.1 million.

 For the Three Months Ended (in thousands)
 Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
 2024 2023 2023 2023 2023
New Loan Production         
Commercial real estate loans$60,085  $178,157  $106,151  $40,989  $75,528 
Commercial and industrial loans 50,789   52,079   67,907   36,322   27,055 
SBA loans 30,817   48,432   36,109   30,926   34,472 
Equipment finance 39,155   57,334   71,075   50,905   69,307 
Residential/consumer loans 53,115   53,465   55,026   100,161   97,201 
subtotal 233,961   389,467   336,268   259,303   303,563 
          
          
Payoffs (86,250)  (77,961)  (62,140)  (120,609)  (124,923)
Amortization (90,711)  (106,610)  (116,411)  (102,248)  (102,675)
Loan sales (55,321)  (29,861)  (22,496)  (20,933)  (30,002)
Net line utilization (4,150)  (11,609)  (70,238)  (28,092)  (30,401)
Charge-offs & OREO (2,123)  (1,777)  (9,369)  (2,708)  (2,237)
          
Loans receivable-beginning balance 6,182,434   6,020,785   5,965,171   5,980,458   5,967,133 
Loans receivable-ending balance$6,177,840  $6,182,434  $6,020,785  $5,965,171  $5,980,458 
          

Deposits were $6.38 billion at the end of the first quarter of 2024, up $95.5 million, or 1.5%, from $6.28 billion at the end of the preceding quarter. Driving the change was a $125.2 million increase in money market and savings deposits and a $40.9 million increase in time deposits, partially offset by a $70.5 million decline in noninterest-bearing demand deposits. Noninterest-bearing demand deposits represented 30.3% of total deposits at March 31, 2024 and the loan-to-deposit ratio was 96.9%.

 As of (in thousands) Percentage Change
 Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Q1-24 Q1-24
 2024 2023 2023 2023 2023 vs. Q4-23 vs. Q1-23
Deposit Portfolio             
Demand: noninterest-bearing$1,933,060  $2,003,596  $2,161,238  $2,206,078  $2,334,083   -3.5%  -17.2%
Demand: interest-bearing 87,374   87,452   88,133   97,076   104,245   -0.1%  -16.2%
Money market and savings 1,859,865   1,734,658   1,576,006   1,580,691   1,382,472   7.2%  34.5%
Time deposits 2,495,761   2,454,868   2,434,695   2,431,923   2,380,238   1.7%  4.9%
Total deposits$6,376,060  $6,280,574  $6,260,072  $6,315,768  $6,201,038   1.5%  2.8%
              
 As of  
 Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,    
 2024 2023 2023 2023 2023    
Composition of Deposit Portfolio             
Demand: noninterest-bearing 30.3%  31.9%  34.5%  34.9%  37.6%    
Demand: interest-bearing 1.4%  1.4%  1.4%  1.5%  1.7%    
Money market and savings 29.2%  27.6%  25.2%  25.0%  22.3%    
Time deposits 39.1%  39.1%  38.9%  38.6%  38.4%    
Total deposits 100.0%  100.0%  100.0%  100.0%  100.0%    
              

Stockholders’ equity at March 31, 2024 was $703.1 million, up $1.2 million from $701.9 million at December 31, 2023. First quarter net income, net of dividends paid, added $7.5 million to stockholders’ equity for the period. This addition was offset by a $3.4 million increase in unrealized after-tax losses on securities available for sale due to changes in interest rates during the first quarter and a $1.6 million increase in unrealized after-tax losses on cash flow hedges. In addition, Hanmi repurchased 100,000 shares of common stock during the quarter at an average share price of $15.92. At March 31, 2024, 309,972 shares remain under Hanmi’s share repurchase program. Tangible common stockholders’ equity was $692.0 million, or 9.23% of tangible assets, at March 31, 2024, compared with $690.8 million, or 9.14% of tangible assets at the end of the fourth quarter of 2023.

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, 2024, Hanmi’s preliminary common equity tier 1 capital ratio was 12.05% and its total risk-based capital ratio was 15.20%, compared with 11.86% and 14.95%, respectively, at the end of the fourth quarter of 2023.

 As of Ratio Change
 Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Q1-24 Q1-24
 2024 2023 2023 2023 2023 vs. Q4-23 vs. Q1-23
Regulatory Capital ratios (1)             
Hanmi Financial             
Total risk-based capital 15.20%  14.95%  15.07%  15.11%  14.80%  0.25   0.40 
Tier 1 risk-based capital 12.40%  12.20%  12.30%  12.25%  11.94%  0.20   0.46 
Common equity tier 1 capital 12.05%  11.86%  11.95%  11.90%  11.59%  0.19   0.46 
Tier 1 leverage capital ratio 10.36%  10.37%  10.27%  10.22%  10.09%  -0.01   0.27 
Hanmi Bank             
Total risk-based capital 14.50%  14.27%  14.42%  14.45%  14.15%  0.23   0.35 
Tier 1 risk-based capital 13.44%  13.26%  13.42%  13.39%  13.06%  0.18   0.38 
Common equity tier 1 capital 13.44%  13.26%  13.42%  13.39%  13.06%  0.18   0.38 
Tier 1 leverage capital ratio 11.29%  11.32%  11.25%  11.21%  11.06%  -0.03   0.23 
              
(1)       Preliminary ratios for March 31, 2024
              

Asset Quality
Loans 30 to 89 days past due and still accruing were 0.26% of loans at the end of the first quarter of 2024, compared with 0.17% at the end of the prior quarter.

Criticized loans totaled $86.0 million at the end of the first quarter, down from $96.7 million at the end of the fourth quarter of 2023. Special mention loans were $62.3 million at the end of the first quarter, down from $65.3 million at December 31, 2023. Reductions in special mention loans included upgrades to pass of $1.5 million, paydowns and payoffs of $1.4 million and downgrades of $0.8 million. The quarter-over-quarter change also included increases from downgrades of $0.7 million of pass loans.

Classified loans were $23.7 million at March 31, 2024, down from $31.4 million at the end of the prior quarter. The $7.7 million decrease was primarily driven by payoffs of $7.3 million, charge-offs of $1.9 million, and paydowns and amortization of $2.1 million. New downgrades to classified loans of $3.6 million partially offset the decrease.

Nonperforming loans were $14.0 million at March 31, 2024, down from $15.5 million at the end of the prior quarter. As a percentage of the loan portfolio, nonperforming loans improved to 0.23% at quarter-end, from 0.25% at the end of the fourth quarter of 2023.

Nonperforming assets were $14.1 million at the end of the first quarter of 2024, down from $15.6 million at the end of the prior quarter. As a percentage of total assets, nonperforming assets also improved to 0.19% at quarter-end, from 0.21% at the end of the fourth quarter of 2023.

Gross charge-offs for the first quarter of 2024 were $2.1 million, compared with $1.8 million for the preceding quarter. Recoveries of previously charged-off loans for the first quarter of 2024 were $0.5 million, compared with $6.8 million of recoveries for the prior quarter, which included a $6.0 million recovery from a 2019 troubled loan relationship. As a result, there were net charge-offs of $1.6 million for the first quarter of 2024, compared to net recoveries of $5.0 million for the prior quarter.

The allowance for credit losses was $68.3 million at March 31, 2024, compared with $69.5 million at December 31, 2023. Specific allowances for loans increased $1.9 million while the allowance for quantitative and qualitative considerations decreased $3.1 million. The ratio of the allowance for credit losses to loans was 1.11% at the end of the first quarter, compared with 1.12% at December 31, 2023.

 As of or for the Three Months Ended (in thousands) Amount Change
 Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Q1-24 Q1-24
 2024 2023 2023 2023 2023 vs. Q4-23 vs. Q1-23
Asset Quality Data and Ratios             
              
Delinquent loans:             
Loans, 30 to 89 days past due and still accruing$15,839  $10,263  $9,545  $13,749  $15,377  $5,576  $462 
Delinquent loans to total loans 0.26%  0.17%  0.16%  0.23%  0.26%  0.09   -0.00 
              
Criticized loans:             
Special mention$62,317  $65,314  $76,473  $44,632  $64,340  $(2,997) $(2,023)
Classified 23,670   31,367   33,134   38,840   47,288   (7,697)  (23,618)
Total criticized loans$85,987  $96,681  $109,607  $83,472  $111,628  $(10,694) $(25,641)
              
Nonperforming assets:             
Nonaccrual loans$14,025  $15,474  $15,783  $22,178  $20,050  $(1,449) $(6,025)
Loans 90 days or more past due and still accruing -   -   -   -   -   -   - 
Nonperforming loans 14,025   15,474   15,783   22,178   20,050   (1,449)  (6,025)
Other real estate owned, net 117   117   117   117   117   -   - 
Nonperforming assets*$14,142  $15,591  $15,900  $22,295  $20,167  $(1,449) $(6,025)
              
Nonperforming assets to assets* 0.19%  0.21%  0.22%  0.30%  0.27%  -0.02   -0.08 
Nonperforming loans to total loans 0.23%  0.25%  0.26%  0.37%  0.34%  -0.02   -0.11 
              
* Excludes repossessed personal property of $1.3 million, $1.3 million, $1.3 million, $0.8 million, and $0.6 million as of Q1-24, Q4-23, Q3-23, Q2-23, and Q1-23, respectively
              
 As of or for the Three Months Ended (in thousands)    
 Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,    
 2024 2023 2023 2023 2023    
Allowance for credit losses:             
Balance at beginning of period$69,462  $67,313  $71,024  $72,249  $71,523     
Credit loss expense (recovery) on loans 404   (2,880)  5,167   514   2,181     
Net loan (charge-offs) recoveries (1,596)  5,029   (8,878)  (1,739)  (1,455)    
Balance at end of period$68,270  $69,462  $67,313  $71,024  $72,249     
              
Net loan charge-offs (recoveries) to average loans (1) 0.10%  -0.33%  0.60%  0.12%  0.10%    
Allowance for credit losses to loans 1.11%  1.12%  1.12%  1.19%  1.21%    
              
Allowance for credit losses related to off-balance sheet items:             
Balance at beginning of period$2,474  $2,463  $2,476  $3,067  $3,115     
Credit loss expense (recovery) on off-balance sheet items (177)  11   (13)  (591)  (48)    
Balance at end of period$2,297  $2,474  $2,463  $2,476  $3,067     
              
Unused commitments to extend credit$792,769  $813,960  $848,886  $791,818  $924,371     
              
(1)       Annualized
              

Corporate Developments
On January 25, 2024, Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2024 first quarter of $0.25 per share. Hanmi paid the dividend on February 22, 2024, to stockholders of record as of the close of business on February 5, 2024.

Earnings Conference Call        
Hanmi Bank will host its first quarter 2024 earnings conference call today, April 23, 2024, 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 35 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:

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, 2023, 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
 2024 2023 Change 2023 Change
Assets         
Cash and due from banks$256,038  $302,324  -15.3% $386,201  -33.7%
Securities available for sale, at fair value 872,190   865,739  0.7%  878,701  -0.7%
Loans held for sale, at the lower of cost or fair value 3,999   12,013  -66.7%  3,652  9.5%
Loans receivable, net of allowance for credit losses 6,109,570   6,112,972  -0.1%  5,908,209  3.4%
Accrued interest receivable 23,032   23,371  -1.5%  19,004  21.2%
Premises and equipment, net 21,952   21,959  -0.0%  22,625  -3.0%
Customers' liability on acceptances 161   625  -74.2%  41  292.7%
Servicing assets 6,890   7,070  -2.5%  7,541  -8.6%
Goodwill and other intangible assets, net 11,074   11,099  -0.2%  11,193  -1.1%
Federal Home Loan Bank ("FHLB") stock, at cost 16,385   16,385  0.0%  16,385  0.0%
Bank-owned life insurance 56,639   56,335  0.5%  55,814  1.5%
Prepaid expenses and other assets 134,116   140,449  -4.5%  124,764  7.5%
Total assets$ 7,512,046  $ 7,570,341  -0.8% $ 7,434,130  1.0%
          
Liabilities and Stockholders' Equity         
Liabilities:         
Deposits:         
Noninterest-bearing$1,933,060  $2,003,596  -3.5% $2,334,083  -17.2%
Interest-bearing 4,443,000   4,276,978  3.9%  3,866,955  14.9%
Total deposits 6,376,060   6,280,574  1.5%  6,201,038  2.8%
Accrued interest payable 38,007   39,306  -3.3%  20,512  85.3%
Bank's liability on acceptances 161   625  -74.2%  41  292.7%
Borrowings 172,500   325,000  -46.9%  350,000  -50.7%
Subordinated debentures 130,165   130,012  0.1%  129,558  0.5%
Accrued expenses and other liabilities 92,053   92,933  -0.9%  70,816  30.0%
Total liabilities 6,808,946   6,868,450  -0.9%  6,771,965  0.5%
          
Stockholders' equity:         
Common stock 34   34  0.0%  33  3.0%
Additional paid-in capital 587,687   586,912  0.1%  584,884  0.5%
Accumulated other comprehensive income (76,890)  (71,928) -6.9%  (79,059) 2.7%
Retained earnings 326,526   319,048  2.3%  283,910  15.0%
Less treasury stock (134,257)  (132,175) -1.6%  (127,603) -5.2%
Total stockholders' equity 703,100   701,891  0.2%  662,165  6.2%
Total liabilities and stockholders' equity$ 7,512,046  $ 7,570,341  -0.8% $ 7,434,130  1.0%
          

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
 2024 2023 Change 2023 Change
Interest and dividend income:         
Interest and fees on loans receivable$91,674 $89,922  1.9% $80,923 13.3%
Interest on securities 4,955  4,583  8.1%  4,025 23.1%
Dividends on FHLB stock 361  341  5.9%  289 24.9%
Interest on deposits in other banks 2,604  2,337  11.4%  2,066 26.0%
Total interest and dividend income 99,594  97,183  2.5%  87,303 14.1%
Interest expense:         
Interest on deposits 45,638  40,277  13.3%  25,498 79.0%
Interest on borrowings 1,655  2,112  -21.6%  2,369 -30.1%
Interest on subordinated debentures 1,646  1,654  -0.5%  1,583 4.0%
Total interest expense 48,939  44,043  11.1%  29,450 66.2%
Net interest income before credit loss expense 50,655  53,140  -4.7%  57,853 -12.4%
Credit loss expense (recovery) 227  (2,870) -107.9%  2,133 -89.4%
Net interest income after credit loss expense 50,428  56,010  -10.0%  55,720 -9.5%
Noninterest income:         
Service charges on deposit accounts 2,450  2,391  2.5%  2,579 -5.0%
Trade finance and other service charges and fees 1,414  1,245  13.6%  1,258 12.4%
Gain on sale of Small Business Administration ("SBA") loans 1,482  1,448  2.3%  1,869 -20.7%
Other operating income 2,387  1,596  49.6%  2,630 -9.2%
Total noninterest income 7,733  6,680  15.8%  8,336 -7.2%
Noninterest expense:         
Salaries and employee benefits 21,585  20,062  7.6%  20,610 4.7%
Occupancy and equipment 4,537  4,604  -1.5%  4,412 2.8%
Data processing 3,551  3,487  1.8%  3,253 9.2%
Professional fees 1,893  1,977  -4.2%  1,335 41.8%
Supplies and communications 601  613  -2.0%  676 -11.1%
Advertising and promotion 907  990  -8.4%  833 8.9%
Other operating expenses 3,371  3,478  -3.1%  1,672 101.6%
Total noninterest expense 36,445  35,211  3.5%  32,791 11.1%
Income before tax 21,716  27,479  -21.0%  31,265 -30.5%
Income tax expense 6,552  8,846  -25.9%  9,274 -29.4%
Net income$ 15,164 $ 18,633  -18.6% $ 21,991 -31.0%
          
Basic earnings per share:$0.50 $0.61    $0.72  
Diluted earnings per share:$0.50 $0.61    $0.72  
          
Weighted-average shares outstanding:         
Basic 30,119,646  30,189,578     30,347,325  
Diluted 30,119,646  30,251,315     30,430,745  
Common shares outstanding 30,276,358  30,368,655     30,555,287  
          

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

 Three Months Ended
 March 31, 2024 December 31, 2023 March 31, 2023
   InterestAverage   InterestAverage   InterestAverage
 Average Income /Yield / Average Income /Yield / Average Income /Yield /
 Balance ExpenseRate Balance ExpenseRate Balance ExpenseRate
Assets              
Interest-earning assets:              
Loans receivable (1)$6,137,888  $91,6746.00% $6,071,644  $89,9225.88% $5,944,399  $80,9235.51%
Securities (2) 969,520   4,9552.07%  961,551   4,5821.93%  980,712   4,0251.67%
FHLB stock 16,385   3618.87%  16,385   3418.25%  16,385   2897.16%
Interest-bearing deposits in other banks 201,724   2,6045.19%  181,140   2,3385.12%  192,902   2,0664.34%
Total interest-earning assets 7,325,517   99,5945.47%  7,230,720   97,1835.34%  7,134,398   87,3034.96%
               
Noninterest-earning assets:              
Cash and due from banks 58,382      61,146      65,088    
Allowance for credit losses (69,106)     (68,319)     (71,452)   
Other assets 244,700      251,660      239,121    
Total assets$ 7,559,493     $ 7,475,207     $ 7,367,155    
               
Liabilities and Stockholders' Equity              
Interest-bearing liabilities:              
Deposits:              
Demand: interest-bearing$86,401  $300.14% $86,679  $290.13% $109,391  $290.11%
Money market and savings 1,815,085   16,5533.67%  1,669,973   14,3793.42%  1,453,569   7,3152.04%
Time deposits 2,507,830   29,0554.66%  2,417,803   25,8694.24%  2,223,615   18,1543.31%
Total interest-bearing deposits 4,409,316   45,6384.16%  4,174,455   40,2773.83%  3,786,575   25,4982.73%
Borrowings 162,418   1,6554.10%  205,951   2,1134.07%  268,056   2,3693.58%
Subordinated debentures 130,088   1,6465.06%  129,933   1,6535.09%  129,483   1,5834.89%
Total interest-bearing liabilities 4,701,822   48,9394.19%  4,510,339   44,0433.88%  4,184,114   29,4502.85%
               
Noninterest-bearing liabilities and equity:              
Demand deposits: noninterest-bearing 1,921,189      2,025,212      2,324,413    
Other liabilities 164,524      177,321      127,112    
Stockholders' equity 771,958      762,335      731,516    
Total liabilities and stockholders' equity$ 7,559,493     $ 7,475,207     $ 7,367,155    
               
Net interest income (tax equivalent basis)  $ 50,655    $ 53,140    $ 57,853 
               
Cost of deposits   2.90%    2.58%    1.69%
Net interest spread (taxable equivalent basis)   1.28%    1.47%    2.10%
Net interest margin (taxable equivalent basis)   2.78%    2.92%    3.28%
               
(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

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. This disclosure 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.

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 Corporation2024 2023 2023 2023 2023
Assets$7,512,046  $7,570,341  $7,350,140  $7,344,924  $7,434,130 
Less goodwill and other intangible assets (11,074)  (11,099)  (11,131)  (11,162)  (11,193)
Tangible assets$7,500,972  $7,559,242  $7,339,009  $7,333,762  $7,422,937 
          
Stockholders' equity (1)$703,100  $701,891  $663,359  $668,560  $662,165 
Less goodwill and other intangible assets (11,074)  (11,099)  (11,131)  (11,162)  (11,193)
Tangible stockholders' equity (1)$692,026  $690,792  $652,228  $657,398  $650,972 
          
Stockholders' equity to assets 9.36%  9.27%  9.03%  9.10%  8.91%
Tangible common equity to tangible assets (1) 9.23%  9.14%  8.89%  8.96%  8.77%
          
Common shares outstanding 30,276,358   30,368,655   30,410,582   30,485,788   30,555,287 
Tangible common equity per common share$22.86  $22.75  $21.45  $21.56  $21.30 
          
(1)       There were no preferred shares outstanding at the periods indicated.